Federal Reserve Bulletin, 1974-09

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 $10.00 annual rate. The regular subscription price in the United States and its possessions, and in 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 $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 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 are not accepted.) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In the two-tone reproduction of the photograph, the gray color is printed as a combined “line conversion” with a light-value halftone and the orange is overprinted with a darker-value halftone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 9 □ VOLUME 60 □ SEPTEMBER 1974 CONTENTS 613 Recent Price Developments 627 Changes in Time and Savings Deposits at Commercial Banks, October 1973—April 1974 636 Treasury and Federal Reserve Foreign Exchange Operations 653 Statement to Congress 656 Record of Policy Actions of the Federal Open Market Committee 664 Law Department 679 Announcements 682 Industrial Production A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 60 International Statistics A 86 Board of Governors and Staff A 88 Open Market Committee and Staff; Federal Advisory Council A 89 Federal Reserve Banks and Branches A 90 Federal Reserve Board Publications A 93 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 Price Developments The present inflation is the most severe and prolonged that the United States has experienced since the rise in prices following World War II. Consumer prices have been increasing at near-record rates for more than a year, and prices of producers’ goods are now rising several times as fast as a year earlier. Although economic activity has slackened this year, lower de­ mand has thus far failed to repress price increases. And the pressure of rising costs is intensifying. Prices are still increasing at almost unprecedented rates, while wage rates and labor costs are acceler­ ating as workers attempt to maintain their real purchasing power. Nevertheless, a better balance between supply and demand is appearing in markets for a number of materials, and reports of shortages have become less frequent. ECONOMIC SETTING In 1973 the U.S. economy exhibited increasing signs of strain. After a booming first quarter, the growth rate fell sharply, in part because of supply limitations as major materials industries operated at high rates of capacity utilization. Shortages of materials became more pervasive throughout the year, partly as a result of high world GNP demand, and these contributed to a decline in productive efficiency as well as to price pressures. Declines in domestic food supplies were accompanied by sharp increases in food prices. In October the Arab oil-exporting countries placed an embargo on shipments of oil to the United States. The resulting shortages and a sharp rise in prices of fuels triggered reductions in activity in a number of sectors, especially in automobile sales and produc­ tion. Inventories of automobiles rose in the fourth quarter at the same time that stocks of other commodities were accumulating. With declines in energy-related sectors as well as in residential construction, and with consumer demand weakening, economic Constant dollars=1958 prices. GNP: activity fell rather sharply in the first quarter of 1974 and has edged Commerce Dept, data; latest figures, Q2. Seasonally adjusted. down further in recent months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 CONSUMER AND WHOLESALE Despite this slack in the economy, inflation has intensified. In PRICE INDEXES 1973 the rate of price increase had already doubled that in 1972, CONSUMER and this year has seen a further acceleration. In the year ending in July, consumer prices rose by 12 per cent; in August wholesale prices were 18 per cent above a year earlier, and industrial com­ modity prices had risen even more. Efforts to reduce inflation through price and wage controls continued during last year and earlier this year, but these were frustrated by several developments, some of which arose outside the United States. Rising international demand fanned an inflation­ ary trend in the domestic economy, which was further exacerbated as the economy reached a cyclical peak. At the same time the second devaluation of the dollar early last year raised the cost to U.S. purchasers of imported goods, Moreover, during the period of currency realignment, peak rates of industrial activity coincided in major industrial nations, thus creating excessive pressure on raw material resources. Prices of imported materials—already at ad­ vanced levels—increased sharply further. Late last year, when price controls were still in effect, prices of a number of major industrial materials on world markets were CPI and wholesale prices, Dept, of Labor data. Farm and food products are farm products and processed TABLE 1 foods and feeds. CPI less food and energy, estimates based on Dept, of MAJOR PRICE TRENDS Labor data. Latest figures, July. Seasonally adjusted. Per cent change, seasonally adjusted annual rates Consumer priceindex Wholesale price index Period it A em ll s Foods E it n e e m rg s y 1 Total Fa f r o m o d a 2 nd Industrials 6 months ending— 1972—June .......... 2.9 3.0 .5 4.1 4.5 4.0 Dec. ...... 3.9 6.5 5.0 9.1 25.1 3.2 1973—June .......... 7.9 21.6 12.4 20.2 45.8 10.6 Dec............. 9.7 18.6 21.1 10.9 10.4 10.9 1974—June .......... 12.6 10.9 44.5 18.2 -11.5 34.0 3 months ending— 1974—Mar............. 14.2 19.4 70.7 24.5 10.8 32.3 June .......... 10.9 3.1 22.3 12.2 -29.3 35.7 1 month ending3— 1974—July .......... 9.1 -4.5 12.5 44.6 77.3 32.9 Aug............. n.a. n.a. n.a. 46.4 91.0 30.3 includes electricity, gas, gasoline and motor oil, fuel oil, and so on. Estimates based on Dept, of Labor data. 2Farm products and processed foods and feeds. 3One-month rates not compounded. Source.—Dept, of Labor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 615 EXPORTS higher than controlled domestic prices, further stimulating exports. As a result of this, as well as the realignment of currencies and high export demand for farm products, the balance of exports over imports in real terms has continued to rise since early 1973. Shipments of industrial materials—particularly those in short sup­ ply—have increased along with the volume of exports of machinery and other producers’ equipment. On the other hand, the physical volume of imports of these commodities has changed little over all since the second quarter of last year. Even more destabilizing to the economy, perhaps, has been the increase in world demand for U.S. farm products. As a result of poor harvests in much of the world outside of North America in 1972, exports of food and feed grains began to rise rapidly in Dept, of Commerce data; latest fig­ late 1972 and have continued at advanced levels. Prices of grains ures, Q2. Seasonally adjusted annual rate. rose to record levels, and U.S. stocks of food and feed grains have been severely depleted. Even today—almost 2 years after harvest failures—a delicate balance exists between adequate do­ mestic supplies and export requirements. High grain prices are still having far-reaching repercussions on prices of meat and other foods in this country. The timing of the surge in food prices reinforced the cyclical rise in industrial prices. As a rule, fluctuations in prices of food and in those of industrial commodities reflect partly independent influences; food prices often are neutral or may offset some of the change in prices of nonfood commodities. In 1973, however, price fluctuations in the two groups moved together. PRICES OF INDUSTRIAL During the first 9 months of 1973 increases in farm and food prices COMMODITIES dominated the inflationary picture. Later, and particularly in 1974, increases in industrial prices became more important. Following the October oil embargo, the extraordinary rise in costs of fuel and of petrochemical materials stimulated a radical readjustment of the price structure and contributed to a general upward movement in the over-all price level. The industrial price rise failed to slow appreciably during 1972 even under price controls, and it accelerated during most of 1973. As would be expected in a cyclical expansion process, prices of crude materials rose first—in fact, the upturn had begun in late 1971 and the rise was very fast in 1973. Prices of processed materials and intermediate goods rose later and less, while many finished goods at wholesale advanced at moderate rates until late in 1973. In part these varying rates of increase reflect the lag involved in the process of purchasing, processing, and distribution. In addition, a large part of the cost of processed materials—espe­ cially of finished goods—reflects labor costs. The rise in such costs was relatively more moderate than that in materials prices, although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 it has accelerated sharply since last year. Finally, price controls may have been more effective for finished goods. Prices of crude materials in August were nearly 50 per cent above those of a year earlier and 80 per cent above levels in the first quarter of 1972. The most important influence in the past year has been the rise in the price of crude oil. Although petroleum prices had begun to rise strongly in the first half of 1973—so fast in fact that the industry was placed under special regulations—the bulk of the increase followed the Arab oil embargo in October. The unit value of imported crude oil rose from over $3 per barrel last September to about $12 in July—almost quadrupling. Imports of crude and refined products account for about one-third of U.S. consumption. Prices of domestically produced oil, though restrained by price regulations, have risen about 80 per cent during the past year. “New” oil—plus an equivalent amount of “old” oil, and oil from “stripper” wells—has been allowed to attain its free market level; such uncontrolled oil now amounts to about 40 per cent of domestic supply. A maximum price of $5.25 per barrel was set for the remainder of “old” oil. WHOLESALE PRICES accelerate Dept, of Labor data; latest figures, July. Crude materials are for further processing and exclude crude foodstuffs, feedstuffs, plant and animal fibers, oilseeds, and leaf tobacco. Intermediate materials include supplies and components but exclude intermediate materials for food manufacturing and manufactured animal feeds. Finished goods less food derived by F.R. from BLS data. Manmade textiles are manmade fiber broadwoven goods. Not seasonally adjusted. Prices of other fuels have also responded to supply stringencies. Coal production—constrained by labor problems, new safety regu­ lations, and environmental restraints—has expanded relatively lit­ tle, and a strike is threatened. Moreover, utilities are now using higher proportions of coal. Coal prices have increased by two-thirds during the past year while gas fuel prices, under liberalized regula­ tions, have climbed more than 45 per cent. Although fuel had accounted for 2 to 3 per cent of the costs in manufacturing before the recent rise, for many industries and for utilities the proportion is now much higher. Industries using petrochemicals as raw mate- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 617 TABLE 2 ENERGY PRICES Percentage changes Annual 9-monthincrease rate of increase June Item to Dec. 1972 Sept. 1973 July 1960-67 1967-72 to to Sept. 1973 June 1974 Crude oil Imported .. .3 3.3 23.7 248.8 3.1 Domestic .. .2 2.8 16.2 51.3 11.3 Coal ............ .7 18.8 8.3 44.4 7.0 Gas fuels __ 2.1 2.8 10.9 14.5 23.8 Electric power - .2 4.3 6.5 25.8 1.8 Source.—Wholesale prices except imported oil, Dept, of Labor. The estimates are lagged 1 month, except for gas fuels, which are lagged 2 months. Imported oil, Dept, of Commerce. rials have suffered a double impact from the increases in petroleum prices. Among other crude materials, steel scrap has been very scarce and was placed under export controls in July 1973; prices have fallen somewhat since spring but remain far above their customary relation to those of steel. Prices of raw materials of agricultural origin, especially cotton, have fallen substantially from earlier peaks. PROCESSED The sharply advanced levels at which prices of raw materials have INDUSTRIAL MATERIALS remained for more than 2 years have exerted a strong effect on prices of major processed materials. In addition, most of the major materials—steel, nonferrous metals, textiles, cement, chemicals, plastics, and paper—have been in short supply since early 1973. In the third quarter of 1973 the ratio of output to plant capacity for major materials rose to about 94 per cent, the highest for any quarter since World War II. By the second quarter of this year, the ratio had fallen only slightly—to 90 per cent. The accelerated rise, or “bulge,” in prices of industrial materi­ als—as well as of other products—this year also reflects in part the calendar of price decontrol. Imported raw materials and agri­ cultural products were not controlled at first sale in 1972 or 1973, but other products and materials were generally subject to controls; as a result, domestic producers were often unable to compete for supplies in international markets. Because of shortages, prices of most nonferrous metals, including lead, tin, zinc, and platinum, were decontrolled in December 1973 and those of nonferrous alloys and most petrochemical materials followed early this year. Fertil­ izers had been decontrolled even earlier, following reductions in domestic supplies stemming from increased exports and worldwide shortages of these products. Paper, aluminum, and most petro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 chemical products were released from controls in March, but steel and copper remained under control until the program expired on April 30. Regulations following the lifting of last year’s freeze presumably had allowed a full pass-through of cost increases into prices of products. Nevertheless, price advances following decontrol were very large, particularly in cases where domestic prices had been below those in world markets. Even after these increases, however, imports of industrial materials continued to decline and exports to rise. Prices of metals have contributed more to the price rise in industrial commodities in the first 8 months of 1974 than any other major industry including fuels. Prices of steel mill products in­ creased almost 40 per cent between December and August. Steel producers have experienced sharply higher costs for energy and for coke, iron ore, and especially steel scrap. Demand has been bolstered by stockpiling in anticipation of price increases and fears of a coal strike. Average hourly earnings in the basic steel industry increased about 10 per cent in the first half of this year. With the recent spurt in domestic prices, steel imports, which had been falling for some time, began to rise, but exports this year have been about two-thirds above those in the same period last year. The major nonferrous metals have also exhibited sharp price advances, although during the past year substantial sales from U.S. stockpiles have helped to ease shortages. Prices of copper of domestic origin are about one-third above a year earlier; lead, tin, and zinc prices have increased even more. In August prices of aluminum ingot were about two-thirds above a year earlier and have since increased further. Costs of labor and of bauxite, the principal material in this industry, have risen sharply, as have costs of power, large amounts of which are used in the production of aluminum. Prices in the chemical industry moved up briskly in 1973. However, industrial chemicals, which are basic for many products, did not accelerate greatly until after the oil embargo when shortages of materials derived from petroleum and natural gas became wide­ spread. By August, prices of industrial chemicals were over 60 per cent higher than a year earlier. Although prices of the more highly processed chemicals have advanced less, increases have been large in petrochemical-consuming industries such as textiles, rub­ ber, and plastics. Among major construction materials, prices of softwood ply­ wood and lumber have declined; in August lumber was below a year earlier. But prices of other construction materials—including hard­ wood plywood, asphalt roofing, and cement—are sharply higher. Paper and paperboard prices are also at very advanced levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 619 FINISHED GOODS, Price increases for producers’ machinery and equipment remained EXCEPT FOODS moderate until this year despite high rates of investment and rising backlogs of orders. Nevertheless, in the first quarter the rate of price rise doubled from 6 per cent at an annual rate to 13 per cent. In the second quarter it doubled again and since then has accelerated further. High metal prices, pressing domestic demands for agricultural and other machinery, and rising exports were instrumental in making this the fastest rise since the 1940’s. Costs of INVESTMENT rise Dept, of Labor data, latest figures, July. Producers’ equipment, seasonally adjusted. Construction materials, not seasonally adjusted. Although wholesale prices of consumer finished goods excluding foods did not begin to increase at accelerated rates until last fall, advances for apparel and other nondurable goods since then have been extremely large by historical standards, as have recent in- TABLE 3 PRICES OF FINISHED GOODS—Selected nonfood items Per cent change, seasonally adjusted annual rates Dec. 1972 Sept. 1973 Dec. 1973 Item to to to Sept. 1973 Dec. 1973 July 1974 Consumer goods Apparel Wholesale ......................................... 3.9 9.7 11.7 Retail ............................................... 4.2 3.8 9.6 Furniture and household durables Wholesale ......................................... 4.2 5.6 15.8 Retail ............................................... 4.4 3.4 11.7 Passenger cars Wholesale ......................................... 2.7 - .3 10.9 Retail ............................................... 3.8 -5.6 12.7 Gasoline1 Wholesale ......................................... 17.0 62.3 106.5 Retail ............................................... 9.3 57.2 51.0 Producers’ equipment ............................... 5.0 6.2 21.2 *Not seasonally adjusted. Source.—Dept, of Labor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 creases for durable goods. The rise in retail prices has been catching up with wholesale increases; in the case of gasoline most of the slower rise at retail reflects the stability of the excise tax. In the fourth quarter of 1973 passenger car prices fell slightly on a seasonally adjusted basis after allowance for quality improve­ ments, owing to restraints on producers by the Cost of Living Council. After a wage settlement in the industry, prices of autos were decontrolled in December and the subsequent increase in prices was very rapid. Briskly rising prices for furniture reflect in part the rise in prices of hardwood, textile, and aluminum materials. FARM PRICES Prospects for a reduced corn crop this year have led to uncertainty in the outlook for livestock and meat prices. Owing to widespread drought in the Midwest, expectations that the corn crop might be a record 6.7 billion bushels have now been lowered to less than 5 billion bushels. The carryover of stocks of feed and food grains, which would have been low in any case, is now expected to fall to minimum levels in relation to consumption. Despite generous harvests in 1973 and good crop prospects in most of the world this year, the world stocks of grains have not recovered from the failure of crops in many countries in 1972. Exports of feed grains rose more than 50 per cent in physical quantity from the 1971-72 to the 1972-73 crop year, and stayed at about that advanced level in the crop year just ending. Wheat exports in the last two crop years have been almost double earlier levels, and exports of cotton, soybeans, and rice have increased substantially. Thus, U.S. food and feed stocks—which are the main source of supply in world trade—will remain at minimum levels TABLE 4 EXPORTS, STOCKS, AND PRICES OF GRAINS Season Period Domestic Exports Ending average use stocks price1 Millions of short tons Feed grains 1971-72 165.7 27.3 48.4 1.08 1972-73 173.2 43.1 32.4 1.57 1973-74 estimate .................. 173.2 43.7 20.6 2.38 Millions of bushels Wheat 1971-72 854.7 632.5 863.1 1.34 1972-73 785.5 1,185.3 438.5 1.76 1973-74 estimate .................. 757.2 1,147.9 248.6 4.00 dollars per bushel. Feed grain price is for corn. Source.—Dept, of Agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 621 in relation to consumption. Small variations in either production or consumption could therefore lead to speculation and sharp changes in price. Recent increases in the prices of feed grains have intensified the problem of a growing imbalance between feed prices and livestock prices. Although both livestock and feed prices are high by historical standards, crop prices—including those of feed grains—have outpaced those of livestock over the past 2 years; this development has reduced the incentive to expand livestock production. Compared with July 1971, livestock prices are up almost 50 per cent, but corn has more than doubled. Prices of LIVESTOCK recede; CROP prices remain high Derived by F.R. from Dept, of Labor data; latest figures, July. Not seasonally adjusted. Meat supplies in 1973 fell substantially from those in the three preceding years. As, a result, livestock prices rose to near-record levels in August at the same time that crop prices reached a temporary peak. Since then there has been a substantial decline in livestock prices, but retail meat prices have dropped much less, with the result that producers now receive a smaller proportion of the consumer’s dollar. With feed and other costs rising, losses involved in livestock feeding have become widespread. For several months the number of cattle placed in feedlots has been declining compared with a year earlier, and in August the number on feed was down more than 25 per cent. Although the total cattle popula­ tion was continuing to rise, a much higher proportion of animals approaching marketable weights are being kept on the range. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 TABLE 5 MEAT: CONSUMPTION AND PRICES Indexes, 1967 = 100, seasonally adjusted Per capita consumption Prices Period Meat Livestock Meat (retail) 1972—HI .................. 106.1 136.1 126.2 H2 .................. 104.7 149.2 132.3 1973—HI .................. 99.0 180.1 150.9 H2 .................. 96.9 200.5 171.2 1974—Ql .................. 101.4 192.3 173.7 Q2 .................. 106.8 151.7 159.2 Source.—Dept, of Agriculture and Dept, of Labor. From June to August of this year livestock prices increased as slaughter rates for cattle reflected the smaller numbers that had been placed in feedlots earlier. With prospects of lower feed-grain prices now more remote, feedlot operations may continue to decline. Nevertheless, marketing of beef may rise substantially in the coming months because of limitations in the number of cattle that can be maintained profitably on the range. Longer-run increases in beef supplies, on the other hand, may be adversely affected as producers gradually reduce the size of breeding herds through heavy marketings. Production of hogs and poultry, which can be adjusted for cost and price changes within a comparatively short time span, is likely to fall earlier than beef production. High grain and soybean prices could reduce poultry output after an interval of only 3 or 4 months, and pork supplies in less than a year. Unless feed grain prices fall considerably, moreover, the output of milk, eggs, and cheese may be adversely affected. GOODS The rise in consumer prices has spread out this year to include SERVICES not only foods and gasoline but also most other goods and services. The importance of foods and fuels in the price rise—accounting for nearly half the increase in the total index from mid-1973 to mid-1974—is diminishing. Mainly for this reason the rapidity of the rise in over-all consumer prices, which attained a peak annual rate of 14 per cent in the first quarter, slackened to about 11 per cent in the second quarter. However, the rate of increase in prices of consumer goods and services other than food and energy accel­ erated between April and July to about three times that during 1973. The increase in grocery store food prices for the year ending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 623 FOOD PRICES in July reflects in part a rise in food prices at the farm level, in part a widening of the spread between prices at the farm level and those at retail, and in part higher prices for imported foods. Relative to a year earlier almost all foods were sharply higher—ex­ cept for meat, which was already at a very advanced level in mid-1973. In July meat prices were slightly below a year earlier but still almost one-fifth above mid-1972. Farm-to-retail price spreads have widened considerably in the past year for meat, bread, milk, and most other foods. For the typical “market basket”—foods of U.S. farm origin—such spreads Dept, of Labor for retail prices; latest were one-fourth higher in the second quarter of this year than in figures: July. Dept, of Agriculture the same period of 1973. data for farm value of market-basket foods; latest figures, July. Retail is Of total expenditures for food consumed at home, meats, poultry, food-at-home component of CPI. Not seasonally adjusted. and fish account for well over one-third, more than twice as much as the proportions for dairy products, cereal and bakery products, or fruits and vegetables. For meats, processing and distribution costs are not such a high proportion of retail prices as they are for most other foods; nevertheless, the rise in these costs during the last year has offset most of the sizable decline in prices of livestock, so consumers have benefited little. The spread between farm and retail prices for beef, which was already high compared with preceding years, widened by more than one-fifth between the second quarter of 1973 and the corresponding period this year. Prices of cereal and bakery products increased more than onethird in the 12 months ending July 1974. However, only about one-fourth of the retail price of those products represents prices of wheat and other farm products. Even though prices of the latter have soared, wheat prices were responsible for less than half of the increase in bread prices during the period. In July prices of dairy products were still more than 20 per cent above the year-earlier level, after receding somewhat from the April TABLE 6 FARM-TO-RETAIL PRICE SPREAD, 1974 Index, 1967 = 100 Per cent change1 Item Ql Q2 Ql Q2 Market basket ..................... 142.6 156.2 19.7 25.6 Beef ............................... 179.1 178.4 26.2 22.5 Pork ............................... 151.9 158.6 42.6 34.2 Milk ............................... 133.2 140.1 17.1 21.5 White bread ..................... 130.3 150.0 19.5 32.4 ^rom corresponding quarter in 1973. Source.—Dept, of Agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 high. The run-up in feed costs and resulting cutbacks in milk production have had a considerable impact on retail prices. Short­ falls from previous harvests and low carryover stocks have contrib­ uted to the sharp rise in prices of processed fruits and vegetables. However, the outlook for fruit and vegetable supplies has improved GASOLINE AND OIL PRICES this year. Prices of dried beans, which, with rice, have a large impact on food budgets of low-income individuals, showed the sharpest increases last year, but they have fallen recently. Since February the rise in food prices has been greatly reduced from an annual rate of about 20 per cent that had been maintained for more than a year. The escalation in gasoline prices has also slackened since the very large first-quarter increase, although the rise in fuel oil prices was still substantial in July. Gasoline supplies are now relatively ample, but consumption this year has been below last year’s rate. Since last September the rise in gasoline and motor oil prices has exceeded 40 per cent. Excluding the gasoline tax the percentage rise was, of course, considerably Dept, of Labor data for consumer greater. On a per-gallon basis, prices of regular gasoline have gone prices; latest figures, July. Season­ up from less than 40 cents to about 56 cents. Meanwhile, fuel ally adjusted. Gasoline includes motor oil. oil prices have increased by about two-thirds. Sharper increases in recent months for other commodities and for services in the consumer budget have offset much of the relative improvement in food and fuels. Prices of apparel—the importance of which is less than half that of food, but about twice that of gasoline and fuel oil—have been rising recently at rates more than twice those in 1973. This reflects in part the rise in textile prices over the last year and a half. Consumer budgets are also being strained by an accelerated rise in the cost of many other nondurable goods, such as household textiles, detergents, paper products, and newspapers. A broad grouping of these commodities advanced more than 10 per cent on the average in the year ending in July; more recently the rate of rise has been about 20 per cent. Since being decontrolled at the producer level in December, retail prices of new cars have advanced about 7 per cent, seasonally adjusted, in sharp contrast to an increase of less than 2 per cent in the preceding 2 years. Consumer prices of automobiles are adjusted to exclude the cost of legally required safety and emission-control equipment and other quality improvements. They also reflect changes in dealer discounts and trade-ins. Prices of small cars have been marked up by larger percentages than have other models, but small cars are not so fully represented in the sample for consumer prices as are standard types. Retail prices of cars of foreign make, which formerly were a restraint on domestic prices, have increased more in U.S. markets than those of domestic makes in the past year; the increase reflects in part the appreciation in exporters’ currencies relative to the dollar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 625 Used-car prices have risen very strongly over the past 4 months, following a long decline between mid-1973 and March of this year; the increase may reflect buyers’ reactions to the jump in new-car prices or a preference for models without emission-control equip­ ment. Prices of furniture and other household durable goods have been rising since spring at a rate about triple that in 1973. Furniture prices in July were nearly 10 per cent above a year earlier; the rise in appliances was about half this much, in contrast to little change in 1973. Service costs have been rising almost as fast as those of nonfood commodities exclusive of gas and oil—about 13 per cent at an annual rate in recent months. Although rapid increases are still occurring in electric and gas utility rates—reflecting in large part the high cost of coal and oil—the rate of rise has slackened somewhat since spring. Prices of medical care, which rose at reduced rates during the control period, have accelerated sharply, and for the 3 months ending in July they have been rising at an annual rate approaching 20 per cent. Services for housekeeping and home maintainance have been rising at an even higher rate for the past 6 months. Rent has been rising more slowly, 4.7 per cent over the past year. RECENT TRENDS Supplies of many raw materials are now becoming more adequate. Since this spring, declines in nonferrous metal prices have been substantial in the world market, though many U.S. producer prices have continued to move up. Cotton, wool, hides, and natural rubber are well below earlier peaks. Petroleum stocks have been replenished. The bulge in prices of major processed materials— steel, chemicals, fuels, and others—may recede shortly. But hopes of a substantial drop in the rate of inflation have been made more uncertain recently by prospects of a reduced crop of feed grains, and by the upward thrust of labor costs. Productivity gains, which Prices of INDUSTRIAL MATERIALS have declined somewhat since spring Index of spot prices of basic commodities compiled by F.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 had slowed in each quarter of 1973, dropped sharply in the first half of this year, as output declined. Moreover, in the past few months employees have been receiving much larger wage and fringe benefit increases than in the preceding year, or even in earlier months of this year. Between May and August the average hourly earnings index in nonfarm activities increased by 11 per cent at an annual rate. With productivity lower than at the end of last year, unit labor costs were 11 per cent higher in the second quarter than in the same period in 1973—more than double the rise that had occurred in each of the two previous years. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

627 Changes in Time and Savings Deposits at Commercial Banks O cto b er 1973—April 1974 Recent surveys of time and savings deposits CONSUMER-TYPE TIME AND SAVINGS held by individuals, partnerships, and corpora­ DEPOSITS tions (IPC) at commercial banks indicate that interest rates on large-denomination time de­ Following little or no growth in the second and posits rose substantially in the 3 months ending third quarters of 1973, inflows of passbook April 30, 1974, while rates on most consumer- savings deposits picked up somewhat in late type time and savings deposits remained close 1973 and expanded at a modest pace in the first to the ceiling levels established by the regulatory 4 months of 1974. Essentially all the growth authorities.1 The rise in rates offered on large in savings deposits in the April 1974 survey time deposits—which are not constrained by period occurred in accounts paying the maxi­ ceilings—reflected efforts by banks to attract mum 5 per cent rate. However, a surprising funds needed to meet surging business credit proportion of the outstanding dollar volume of demands in March and April. savings deposits—approximately 23 per cent— As banks competed for funds, the outstanding remained in accounts paying a below-ceiling volume of large-denomination time deposits ex­ rate of AVi per cent, and some were at even panded by more than $8 billion—data are not lower rates. A substantial share of these lowerseasonally adjusted—between the end of Jan­ yielding deposits was in large banks (deposits uary and the end of April. This growth ac­ of $100 million or more), especially a few banks counted for more than half of the total increase on the West coast. in IPC time and savings deposits during that Holders of below-ceiling-rate savings depos­ period; a large proportion of the remaining its presumably preferred the liquidity and con­ growth was concentrated in consumer-type 4- venience of such accounts to the higher rates year certificates in denominations of $1,000 to available on longer-maturity time deposits, or $100,000, most of which were paying the max­ perhaps they were not aware of the higher rates imum rate allowed under Regulation Q—l lU per available elsewhere. Those banks paying less cent. Although passbook savings accounts in­ than 5 per cent on passbook accounts assumed creased moderately in the first quarter, other that most interest-sensitive funds had already short-maturity consumer-type time deposits been withdrawn from savings accounts, and that continued the decline that had begun in mid- raising the savings rate to 5 per cent would 1973, as rates on competitive market instru­ increase the cost of existing funds without at­ ments rose further above the maximum rates tracting a significant inflow of new funds. At allowed on these instruments. the same time these banks attempted to attract interest-sensitive funds by offering higher rates Note.—Martha S. Scanlon of the Board’s Division on time certificates. of Research and Statistics prepared this article. Regulation Q ceiling rates have had a marked 1 Previous surveys of time and savings deposits at all member banks were conducted by the Board of impact on the maturity structure of small-de­ Governors in late 1965, in early 1966, and quarterly nomination (less than $100,000) time deposit beginning in 1967. Beginning in 1968 the surveys were flows during the past year, as indicated in the expanded to provide figures for all insured commercial banks and were conducted jointly by the Board of survey data. As low-yielding, short-maturity Governors and the Federal Deposit Insurance Corpora­ time certificates have matured, many savers tion. The results of earlier surveys have appeared in have shifted their funds into longer-maturity, the Bulletins for 1966-73, the most recent being April 1974, pp. 252-62. higher-yielding deposits or into other money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, July 31, 1973—April 30, 1974. Number of issuing banks Amount (in millions of dollars) Percentage change Type of deposit 1973 1974 1973 1974 in deposits (quarterly rate) July 311 Oct. 311 Jan.31 Apr. 30 Oct. 31» Jan.31 Apr. 30 Oct. 31- Jan.31- Jan. 31 Apr. 30 Total time and savings deposits............. 13,804 13,820 13,915 14,013 304,010 308,953 318,593 333,090 3.1 4.6 Savings.......................................................... 13,476 13,510 13,619 13,709 124,086 124,217 126,175 129,928 1.6 3.0 Time deposits in denominations of 2.1 less than $100,000—total.......... 13,565 13,684 13,698 13,898 104,176 105,567 109,891 112,245 4.1 Accounts with original maturity of *— Less than 1 year............................. 13,064 13,092 13,200 13,456 42,963 38,944 38,638 37,592 -1 -. . 8 1 -2.7 2 1 l/ u i p u t p o t 2 o V 4 i y y e e a a r r s s . 2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 3 , , 0 0 5 3 7 4 1 1 3 0 , , 3 4 8 5 3 5 1 1 3 1 , , 3 0 5 0 1 8 1 1 3 1 , , 5 4 5 8 8 5 4 9 8 , , 8 1 4 7 1 0 4 1 5 1 , , 5 5 4 7 3 6 4 1 5 3 , , 0 2 3 6 7 2 4 1 2 4 , , 6 7 7 59 0 15.4 -151..36 4 years and over in denomina­ tions of $ 1,000 or more. , 5,207 7,764 8,931 9,560 3,203 9,506 12,954 17,224 36.3 33.0 All maturities: Open accounts— Passbook or statement form3................................... 3,862 3.547 3,704 3,682 30,315 28,391 29,629 29,125 4.4 Time deposits in denominations of Ne $ g 1 o 0 t 0 ia ,0 b 0 le 0 C or D m ’s o . r .. e ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3 , , 5 2 9 4 0 6 7 3 , , 0 6 8 6 5 0 7 3 , , 4 7 9 7 0 6 7 3 , , 5 9 3 08 3 6 5 9 0 , , 1 7 1 05 6 7 5 3 2 , , 0 1 3 16 6 7 5 7 3 , , 0 50 5 9 6 8 6 5 0, , 2 1 7 3 3 0 5 2 . . 5 7 1102..56 Nonn a e c g c o o t u ia n b t l s e .. .. C .... D .... ’ .. s . ... a ... n .. d ... ... o .. p ... e ... n 3,848 3,988 4,297 4,228 18,411 20,920 23,547 24,857 12.6 5.6 Christmas savings and other -1.1 special funds4................................ 8,811 7,916 ,637 8,832 6,632 6,133 5,471 5,787 5.8 r Revised. special funds reported Oct. 31 and after are not strictly comparable 1 Maturity categories were changed to conform with the change in with those in previous surveys. Regulation Q that went into effect July 1, 1973. 2 Includes a small amount of deposits in accounts with maturities Note.—Data were compiled jointly by the Board of Governors of of 4 years or more and minimum denominations of less than $1,000. the Federal Reserve System and the Federal Deposit Insurance 3 Includes time deposits, open account, issued in passbook, state­ Corporation. For surveys taking place in January, April, and July the ment, or other forms that are direct alternatives for regular savings information was reported by a probability sample of all insured com­ accounts. Most of these are believed to be in accounts totaling less mercial banks; for October the data for member banks were reported than $100,000. The figures shown on this line are included above in by virtually all such banks and for insured nonmember banks by the the appropriate maturity category. same sample of these banks reporting in earlier surveys. 4 Through July 31, 1973, special funds (and also total time and Some deposit categories include a small amount of deposits out­ savings deposits) included deposits accumulated for the payment of standing in a relatively few banks that no longer issue these types of personal loans (hypothecated deposits). In the Oct. 31, 1973, and deposits and are not included in the number of issuing banks. Dollar future surveys these funds are excluded. Hence, the amounts of amounts may not add to totals because of rounding. market instruments such as Treasury bills. For cent, with the majority offering 7 to IVi per example, outstanding consumer-type time de­ cent. Following the imposition of the 7Vi per posits maturing in less than a year and time cent ceiling on November 1, most banks began certificates in the 1- to 2y2-year maturity range offering this rate; since then, sales of 4-year each declined by more than $5 billion in the certificates have continued strong, indicating 9-month period ending April 30, 1974. Deposits that IVa per cent is still a relatively attractive in these two maturity categories are limited to rate to small savers. maximum rates of 5l/i and 6 per cent, respec­ A large part of the inflows of 4-year deposits tively. no doubt reflects shifts of funds out of lower- Meanwhile, banks have attracted large yielding commercial bank time deposits, and a amounts of funds through sales of 4-year certif­ lesser part, net inflows of funds to the banking icates in denominations of $1,000 to $100,000. system. Accompanying the growth in 4-year Regulation Q ceilings on these instruments were deposits between January and April, there was lifted in July 1973 and in the period from then an increase of $1.5 billion in deposits maturing to April 1974, such deposits increased by more in 2Vi to 4 years, which were paying a rate of than $14 billion. Between July 1 and November 6Vi per cent. The expansion in deposits in these 1, 1973, there was no limit on the rates that two maturity categories offset the decline in banks could offer on these certificates, and some shorter-maturity time deposits, so, on balance, banks were offering rates as high as 8 or 9 per total small-denomination IPC time deposits in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 629 TABLE 2 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JAN. 31 AND APR. 30,1974, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Apr. 30Jan. 31 Apr. 30Jan. 31 Apr. 30Jan. 31 Apr. 30Jan. 31 Apr. 3o|jan. 31 Apr. 30Jan. 31 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits: Issuing banks.................................................... 13,710 13,619 12,938 12,859 772 760 129,928 126,175 52,715 51,145 77,213 75,030 Percentage distribution by most com­ mon rate paid on new deposits: 100 100 100 100 100 100 100 100 100 100 100 100 3.50 or less................................................ 2.1 2.3 2.2 2.4 1.4 1.2 1.0 1.1 .9 1.5 1.0 .9 3.51-4.00.................................................... 6.9 7.5 6.9 7.4 8.4 9.4 7.2 8.0 5.4 5.8 8.4 9.5 4.01-4.50.................................................... 10.1 11.3 9.7 11.0 15.9 15.7 22.8 23.2 12.4 14.1 30.0 29.4 4.51-5.00.................................................... 80.8 79.0 81.2 79.3 74.3 73.7 68.9 67.6 81.3 78.6 60.5 60.1 Time deposits in denominations of less than $100,000: Maturities less than 1 year: Issuing banks................................................ 13,456 13,199 12,681 12,438 775 761 37,593 38,638 18,063 18,533 19,530 20,105 Percentage distribution by most common rate paid on new de­ posits : 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less........................................... O) 0) 0) O) O) .1 O) (!) O) 0) O) .1 4 4. . 5 0 1 1 - - 5 4 . . 0 5 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O 1 ) 0.5 12 . . 8 1 (! 1 ) 0.5 12 . . 1 9 ( 1 0 0.1 O 1 ) 2.0 O) 9.2 O 1 ) 1.5 O) 8.4 C1 9 ) .9 O 1 ) 0.0 (11)3 .1, 5.01-5.50............................................... 89.5 87.1 89.4 87.0 89.9 87.9 90.8 88.4 91.6 90.1 90^0 86.9 Maturities of 1 up to 2Vi years: 13,558 13,351 12,191 12,599 765 752 42,669 45,037 28,009 29,351 14,660 15,686 Percentage distribution by most common rate paid on new de­ posits : 100 100 100 100 100 100 100 100 100 100 100 100 4 4. . 5 5 1 0 o 5 r . 0 le 0 s ... s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O) . 1 0) .2 (1) .1, O) .2 O) .3 O) .3 O) . 1 O) . 1 O) .1 . 1 . 1 (1) . 1, 5.01-5.50.................................................. 3.2 3.9 3.3 4.0 1.6 3.5 1.7 1.9 2.4 2.3 .5 1.3 5.51 6.00.................................................... 96.6 95.8 96.5 95.8 98.1 96.2 98.2 97.9 97.5 97.6 99.4 98.6 Maturities of 2Vi up to 4 years: Issuing banks................................................ 11,485 11,008 10,756 10,290 729 718 14,391 12,896 8,695 7,454 5,696 5,442 Percentage distribution by most common rate paid on new de­ posits : Total............................................................ 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............................................. O) .2 O) .1 .1 .7 O) . 1 O) O) .1 .2 5.01-5.50.................................................... . 1 .2 .1 .2 .1 . 1 .2 O) O) O) .5 0) 5.51 6.00.................................................... 2.2 3.2 2.2 3.1 3.4 5.2 5.2 6.9 2.9 4.0 8.6 10.8 6.01 6.50.................................................... 97.6 96.4 97.7 96.6 96.3 93.9 94.5 93.0 97.0 96.0 90.8 89.0 Maturities of 4 years and over (mini­ mum denomination of $ 1,000): Issuing banks............................................... 9,560 8,930 8,844 8,235 716 695 17,141 12,839 7,556 5,508 9,585 7,331 Percentage distribution of most common rate paid on new de­ posits : Total............................................................ 100I 100 100 100 100 100 100 100 100 100 100 100 6.00 or less............................................... .4> .3 .4 .2 1.1 1.4 .4 1.3 .2 .2 .4 2.1 6.01-6.50.................................................. 1.9> 2.6 1.8 2.6 2.6 3.2 .8 .8 1.1 1.0 .5 .7 6.51 7.00.................................................... 35.6» 40.4 36.4 41.2 25.9 31.2 26.0 31.3 32.2 36.3 21.1 27.6 7.01 7.25.................................................... 62.1 56.6 61.4 56.0' 70.3 64.3 72.9 66.5 66.5 62.5 78.0 69.6 1 Less than .05 per cent. For Note, see p. 631. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JAN. 31 AND APR. 30, 1974 Time deposits in denominations of less than $100,000 Savings Maturing in— and small Bank location and size of denom­ Savings 4 years 4 years bank (total deposits in ination Total or more or more millions of dollars) time Less 1 up to 2 Vi up to (in de­ (in de­ deposits than 2 Vi years 4 years nomina­ nomina­ 1 year tions of tions of less than $1,000 or $1,000) more) January 31, 1974 All banks: All size groups......................... 5.34 4.78 5.98 5.44 5.97 6.45 6.04 7.15 Less than 10......................... 5.53 4.72 5.95 5.40 5.98 6.48 6.50 7.09 10-50........................................ 5.47 4.86 5.98 5.46 5.97 6.47 5.44 7.14 50-100..................................... 5.39 4.85 6.01 5.46 5.98 6.48 6.07 7.18 100-500................................... 5.30 4.79 5.98 5.44 5.97 6.43 5.47 7.13 500 and over......................... 5.19 4.72 5.97 5.42 5.98 6.42 6.08 7.15 Banks in— Selected large SMSA’s:1 All size groups.................... 5.24 4.78 5.98 5.43 5.97 6.42 6.04 7.14 Less than 10.................... 5.38 4.83 5.96 5.42 5.95 6.46 6.08 7.15 10-50................................... 5.34 4.88 5.99 5.44 5.95 6.47 5.43 7.16 50-100................................ 5.34 4.87 6.01 5.46 5.96 6.46 6.13 7.17 100-500.............................. 5.25 4.79 5.97 5.43 5.96 6.40 5.76 7.07 500 and over.................... 5.20 4.74 5.98 5.43 5.98 6.41 6.08 7.15 All other SMSA’s: All size groups.................... 5.32 4.71 6.00 5.45 5.97 6.49 5.58 7.18 Less than 10.................... 5.18 4.24 5.98 5.27 5.98 6.50 6.50 7.09 10-50................................... 5.44 4.75 6.04 5.47 5.96 6.49 5.86 7.18 50-100................................. 5.37 4.81 6.00 5.47 5.98 6.50 5.14 7.17 100-500.............................. 5.33 4.80 5.99 5.46 5.98 6.47 5.22 7.19 500 and over.................... 5.10 4.46 5.92 5.40 5.96 6.49 6.13 7.16 Banks outside SMSA’s: All size groups......................... 5.54 4.87 5.97 5.45 5.98 6.47 6.40 7.14 Less than 10......................... 5.61 4.84 5.94 5.42 5.98 6.48 6.50 7.08 10-50........................................ 5.54 4.89 5.96 5.46 5.97 6.47 6.50 7.12 50-100...................................... 5.51 4.87 6.03 5.44 5.99 6.49 5.81 7.20 100-500................................... 5.36 4.77 6.01 5.43 5.96 6.41 5.90 7.17 500 and over......................... 5.58 5.00 6.07 5.50 6.00 6.50 7.25 April 30, 1974 All banks: All size groups......................... 5.37 4.80 6.05 5.45 5.98 6.46 6.05 7.17 Less than 10......................... 5.61 4.82 6.00 5.44 5.98 6.49 6.44 7.12 10-50........................................ 5.50 4.87 6.04 5.46 5.97 6.48 6.29 7.15 50-100...................................... 5.43 4.88 6.07 5.46 5.98 6.48 5.88 7.18 100-500................................... 5.33 4.80 6.07 5.45 5.98 6.45 6.26 7.19 500 and over......................... 5.22 4.72 6.05 5.45 5.98 6.43 6.02 7.17 Banks in— Selected large SMSA’s:1 All size groups.................... 5.27 4.79 6.06 5.46 5.98 6.44 6.03 7.18 Less than 10.................... 5.42 4.85 6.04 5.43 5.98 6.48 6.05 7.19 10-50................................... 5.37 4.89 6.06 5.45 5.97 6.48 6.27 7.17 50-100................................. 5.37 4.88 6.08 5.45 5.97 6.46 5.15 7.18 lOO-SOO.............................. 5.29 4.80 6.07 5.45 5.97 6.42 6.44 7.19 500 and over.................... 5.23 4.74 6.06 5.46 5.98 6.44 6.01 7.17 All other SMSA’s: All size groups.................... 5.36 4.74 6.05 5.43 5.98 6.48 5.69 7.18 Less than 10.................... 5.47 4.71 6.05 5.42 5.98 6.50 6.50 7.12 10-50................................... 5.47 4.76 6.11 5.46 5.98 6.50 6.12 7.14 50-100................................ 5.42 4.86 6.03 5.47 5.98 6.50 5.15 7.17 100-500.............................. 5.35 4.79 6.06 5.46 5.98 6.48 5.21 7.19 500 and over.................... 5.12 4.46 5.94 5.31 5.98 6.38 6.32 7.21 Banks outside SMSA’s: All size groups......................... 5.58 4.88 6.02 5.46 5.97 6.47 6.48 7.16 Less than 10......................... 5.65 4.84 6.00 5.45 5.98 6.49 6.50 7.12 10-50........................................ 5.57 4.89 6.01 5.46 5.97 6.47 6.50 7.14 50-100..................................... 5.55 4.92 6.11 5.45 5.99 6.49 6.50 7.20 100-500................................... 5.45 4.85 6.11 5.46 5.99 6.43 6.17 7.20 500 and over......................... 5.64 5.00 6.14 5.50 6.00 6.50 6.50 7.25 For notes see p. 631. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 631 creased 2.1 per cent during the 3 months ending lower rates than do negotiable CD’s, and lack­ April 30. This was the smallest first-quarter ing marketability they are not so competitive increase in such deposits since 1970. In April with other money market instruments. as in the January and October survey periods, In the middle of the first quarter, business almost all banks were paying the ceiling rates credit demands began to swell, and the continu­ on small-denomination time deposits. ation of a restrictive monetary policy reversed expectations of an easing in credit availability. Banks again increased their reliance on sales of LARGE-DENOMINATION TIME DEPOSITS large-denomination time deposits in the form of Sales of large-denomination time deposits— negotiable CD’s in order to obtain lendable negotiable and nonnegotiable certificates of de­ funds. Consequently, offering rates on negotia­ posit (CD’s) and open accounts—slowed con­ ble CD’s rose sharply late in the first quarter, siderably in the fall of 1973 and continued at and net sales of such instruments to IPC’s ap­ a reduced pace through January 1974. Offering proached $6.8 billion between the end of Jan­ rates on such instruments in January were mod­ uary and the end of April. erately lower than the levels reported in Oc­ A substantial proportion of the negotiable tober. The slower growth in sales during most CD’s sold in this period was issued by banks of this period reflected a less aggressive stance with deposits of $500 million or more located by commercial banks in seeking such funds in the major money market centers. Large banks because of a variety of factors. The most im­ in the New York, Chicago, and San Francisco portant factor was a slackening in the pace of Districts accounted for nearly three-fourths of business credit demands at the end of the year, the net increase between January and April in which reduced the banks’ needs for funds. In CD’s held by IPC’s. Sales of CD’s to IPC’s addition, expectations that an easing in mone­ in the San Francisco District—where most of tary policy would lead to lower interest rates the large banks were offering rates above 10 reduced the pressures in financial markets early per cent—amounted to more than $2 billion. in 1974. Between the end of October and the Rates on nonnegotiable CD’s rose much less end of January more than half the growth in rapidly than other market rates in the April large-denomination IPC time deposits was in survey period, and sales of these instruments nonnegotiable CD’s and open account deposits. dropped to half the pace of the preceding quarter These instruments generally carry somewhat when market rates generally were lower. □ NOTE TO TABLE 2: Note.—The most common interest rate for each instrument refers While rate ranges of Va or Vi of a percentage point are shown in to the basic stated rate per annum (before compounding) in effect on this and other tables, the most common rate reported by most banks the survey date that was generating the largest dollar volume of de­ was the top rate in the range; for example, 4.00, 4.50, etc. Some posit inflows. If the posted rates were unchanged during the 30-day deposit categories exclude a small amount of deposits outstanding in period just preceding the survey date, the rate reported as the most a relatively few banks that no longer issue these types of deposits and common rate was the rate in effect on the largest dollar volume of are not included in the number of issuing banks. deposit inflows during the 30-day period. If the rate changed during Figures may not add to totals because of rounding. that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. NOTES TO TABLE 3: 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of popula­ tion in the 1970 Census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-T roy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland Norfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D. C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Bemadino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Youngsto wn-Warren Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 5.00 or 4.00 4.50 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks............................................................................................ 13,619 313 1,018 1,536 10,752 126,175 1,458 10,113 29,289 85,315 Size of bank (total deposits in millions of dollars): Less than 10................................................................................ 5,405 215 600 402 4,188 6,098 390 640 502 4,566 10-50............................................................................................... 6.469 83 292 874 5,220 30,844 280 1,550 4,386 24,628 50-100............................................................................................ 984 6 54 140 784 14,203 76 777 2,319 11,031 100-500.......................................................................................... 588 6 51 83 448 26,115 182 2,946 4,276 18,711 500 and over................................................................................ 173 3 21 37 112 48,915 530 4,200 17,807 26,378 APRIL 30, 1974 All banks............................................................................................ 13,710 296 951 1,382 11,081 129,928 1,316 9,347 29,685 89,580 Size of bank (total deposits in millions of dollars): Less than 10................................................................................ 5,265 194 560 327 4,184 5,781 111 594 429 4,647 10-50............................................................................................... 6,624 85 277 814 5,448 31,921 298 1,602 4,122 25,899 50-100............................................................................................. 1,049 7 49 118 875 15,013 77 655 1,989 12,292 100-500.......................................................................................... 599 7 46 85 461 27,690 261 2,624 4,997 19,808 500 and over............................................................................... 173 3 19 38 113 49,523 569 3,872 18,148 26,934 APPENDIX TABLE 2—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN LESS THAN 1 YEAR Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.00 or 5.50 or 5.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks.......................................................... 13,200 1,705 11,495 38,638 4,477 34,161 Size of bank (total deposits in millions of dollars): Less than 10............................................... 5,214 921 4,293 2,825 545 2,280 10-50.............................................................. 6,239 587 5,652 11,154 930 10,224 50-100........................................................... 985 104 881 4,554 360 4,194 100-500......................................................... 589 65 524 7,686 784 6,902 500 and over............................................. 173 28 145 12,419 1,858 10,561 APRIL 30, 1974 All banks.......................................................... 13,456 1,418 12,038 37,592 3,462 34,130 Size of bank (total deposits in millions of dollars): Less than 10............................................... 5,220 722 4,498 2,447 271 2,176 10-50.............................................................. 6,415 519 5,896 11,040 884 10,156 50-100........................................................... 1,046 99 947 4,576 359 4,217 100-500........................................................ 602 56 546 7,650 715 6,935 500 and over............................................. 173 22 151 11,879 1,233 10,646 For notes to Appendix Tables 1-7, see p. 635. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 633 APPENDIX TABLE 3—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 1 UP TO 2% YEARS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 5.00 or 5.50 6.00 or 5.50 6.00 less less NUNlBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks............................................................................................... 13,351 37 525 12,789 45,037 50 876 44,111 Size of bank (total deposits in millions of dollars): Less than 10................................................................................... 5,345 26 236 5,083 7,271 6 262 7,003 10-50.................................................................................................. 6,279 7 232 6,040 17,433 21 329 17,083 50-100................................................................................................ 975 2 30 943 4,647 (2) (2) 4,561 100-500............................................................................................. 583 1 19 563 6,538 (2) (2) 6,399 500 and over.................................................................................. 169 1 8 160 9,148 (2) (2) 9,065 APRIL 30, 1974 13,559 21 438 13,100 42,670 35 743 41,892 Size of bank (total deposits in millions of dollars): Less than 10................................................................................... 5,276 10 178 5,088 7,067 2 256 6,809 10-50.................................................................................................. 6,477 5 225 6,247 16,509 3 373 16,133 50-100............................................................................................... 1.040 4 23 1,013 4,433 16 38 4,379 100-500............................................................................................. 595 1 7 587 5,991 (2) (2) 5,926 500 and over.................................................................................. 171 1 5 165 8,670 (2) (2) 8,645 APPENDIX TABLE4—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 2^YEARS OR MORE EXCLUDING DEPOSITS WITH MINIMUM MATURITY OF 4 YEARS IN DENOMINATIONSOF$l,000to$100,000 Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 6.00 or 6.50 or 6.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 AH banks.......................................................... 11,008 391 10,617 12,896 897 11,999 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 3,799 i 126 3,673 1,138 49 1,089 10-50............................................................. 5,568 173 5,395 5,009 213 4,796 50-100........................................................... 923 1 49 874 1,307 36 1,271 100-500......................................................... 558 25 533 1,926 218 1,708 500 and over............................................. 160 16 142 3,516 381 3,135 APRIL 30, 1974 All banks.......................................................... 11,485 273 11,212 14,391 785 13,606 Size oi bank (total deposits in millions of dollars): Less than 10............................................... 3,879 33 3,846 1,435 32 1,403 10-50............................................................. 5,893 163 5,730 5,681 182 5,499 50-100........................................................... 985 50 935 1,579 46 1,533 100-500......................................................... 567 14 553 2,120 184 1,936 500 and over............................................. 161 13 148 3,576 341 3,235 For notes to Appendix Tables 1-7, see p. 635. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 APPENDIX TABLE 5—TIME DEPOSITS, IPC, IN DENOMINATIONS OF $1,000 to $100,000-MATURING IN4YEARSOR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 6.50 or 7.00 7.25 or 7.00 7.25 less less NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks............................................................................................... 8,930 260 3,607 5,063 12,838 271 4,022 8,545 Size of bank (total deposits in millions of dollars): 2,678 125 1,243 1,310 639 41 275 323 10-50.................................................................................................. 4,696 96 1,869 2,731 3,083 25 1,219 1,839 50-100............................................................................................... 861 8 278 575 1,785 O) 507 1,278 100-500............................................................................................. 532 23 165 344 2,951 164 655 2,132 500 and over.................................................................................. 163 8 52 103 4,380 41 1,366 2,973 APRIL 30, 1974 9,560 222 3,405 5,933 17,141 192 4,450 12,499 Size of bank (total deposits in millions of dollars): Less than 10................................................................................... 2,856 44 1,241 1,571 760 18 328 414 10-50.................................................................................................. 5,050 128 1,720 3,202 4,492 70 1,536 2,886 50-100............................................................................................... 938 23 258 657 2,304 13 566 1,725 100-500............................................................................................. 554 19 145 390 3,996 16 773 3,2,07 500 and over.................................................................................. 162 8 41 113 5,589 75 1,247 4,267 APPENDIX TABLE 6—NEGOTIABLE CD’s, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 7.00 More 7.00 More or 7.50 8.00 8.50 9.00 9.50 10.00 than or 7.50 8.00 8.50 9.00 9.50 10.00 than less 10.00 less 10.00 NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks. 3,777 725 580 670 636 802 328 32 453,507 629 936 5,631 10,51816,25616,8072,696 34 Size of bank (total deposits in millions of dollars): Less than 10......................................... 793 274 62 177 132 85 63 299 (2) (2) 88 62 25 59 10-50......................................................... 2,098 402 438 384 336 397 119 19 32,554 332 439 368 531 639 159 77 9 50-100..................................................... 406 19 67 68 62 146 42 2 1,711 34 175 262 264 831 145 (2) (2) 100-500.................................................... 324 27 11 35 75 116 55 4 16,421 183 151 730 1,338 2,707 1,266 (2) (2) 500 and over........................................ 156 3 2 6 31 58 49 7 42,522 (2) (2) 4,183 8,323 12,054 15,1782,598 APRIL 30, 1974 60,272 All banks....................................................... 3,908 631 570 568 651 597 374 309 208 615 698 9382,050 3,574 4,884 14,35233,161 Size of bank (total deposits in millions of dollars): Less than 10........................................... 752 235 100 99 168 107 6 37 264 (2) (2) 27 101 24 2 17 10-50.......................................................... 2,273 342 426 408 367 347 221 104 582,823 308 456 378 364 516 434 228 139 50-100....................................................... 402 38 33 40 81 68 62 41 39 1,723 129 56 137 290 290 427 159 235 100-500..................................................... 322 13 10 16 31 59 63 80 506,367 89 148 157 469 1,148 1,315 1,773 1,268 500 and over.......................................... 159 3 1 5 4 16 22 47 6149,095 (2) (2) 239 826 1,596 2,706 12,17531,519 For notes to Appendix Tables 1-7, see p. 635. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 635 APPENDIX TABLE 7—NONNEGOTIABLE CD's AND OPEN ACCOUNT DEPOSITS, IPC, IN DENOMINATIONS OF$100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 7.00 More 7.00 More or 7.50 8.00 8.50 9.00 9.50 10.00 than or 7.50 8.00 8.50 9.00 9.50 10.00 than less 10.00 less 10.00 NUMBER OF BANKS MILLIONS OF DOLLARS JANUARY 31, 1974 All banks..................................................... 4,297 1,174 620 807 591 777 292 17 1923,46?1,573 1,011 2,508 4,798 9,805 3,636 120 111 Size of bank (total deposits in millions of dollars): Less than 10......................................... 672 280 74 100 115 95 8 145 45 13 21 21 43 2 10-50........................................................ 2,434 679 389 534 261 379 163 11 182,406 262 268 739 405 464 242 (2) (2) 50-100..................................................... 635 101 115 115 118 151 33 2 1,924 152 169 326 438 590 249 (2) (2) 100-500................................................... 425 81 32 50 78 118 63 3 5,491 178 117 559 1,250 2,128 1,156 103 500 and over........................................ 131 33 10 8 19 34 26 113,496 936 444 863 2,684 6,580 1,987 (2) (2) APRIL 30, 1974 All banks....................................................... 4,228 993 442 715 510 637 418 364 14924,7811,658 381 1,321 1,182 6,566 2,990 4,504 6,179 Size of bank (total deposits in millions of dollars): Less than 10........................................... 506 235 67 83 7 62 31 15 6 113 49 10 16 2 26 6 3 1 10-50........................................................... 2,491 593 300 454 342 357 264 147 342,639 256 139 515 351 561 497 259 61 50-100........................................................ 661 61 37 139 120 133 42 105 242,250 73 49 217 365 546 255 630 115 100-500..................................................... 439 71 28 33 35 70 70 71 61 5,495 178 108 321 301 843 1,371 1,297 1,076 500 and over.......................................... 131 33 10 6 6 15 11 26 24 14,284 1,102 75 252 1634,590 861 2,315 4,926 NOTES TO APPENDIX TABLES 1-7: 1 Less than $500,000. a few banks that had discontinued issuing these instruments but 2 Omitted to avoid individual bank disclosure. still had some deposits outstanding on the survey date. Dollar amounts Note.—Data were compiled from information reported by a prob­ may not add to totals because of rounding. ability sample of member and insured nonmember commercial banks. In the headings of these tables under “Most common rate paid The figures were expanded to provide universe estimates. (per cent)” the rates shown are those being paid by nearly all reporting Figures exclude banks that reported no interest rate paid and banks. However, for the relatively few banks that reported a rate in that held no deposits on the survey dates, and they also exclude between those shown, the bank was included in the next higher rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Treasury and Federal Reserve Foreign Exchange Operations This twenty-fifth joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Special Manager, System Open Mar­ available additional information on foreign ex­ ket Account, and Senior Vice President in change operations from time to time. The Fed­ charge of the Foreign Department of the Federal eral Reserve Bank of New York acts as agent Reserve Bank of New York. It covers the period for both the Treasury and the Federal Open February through July 1974. Previous reports Market Committee of the Federal Reserve Sys­ have been published in March and September tem in the conduct of foreign exchange opera­ Bulletins of each year beginning with Sep­ tions. tember 1962. Over the 6-month period, February 1974 inducement to outflows of U.S. funds into through July 1974, covered by this report, the foreign markets. Foreign demand for dollar exchange markets were buffeted by turbulent credit mounted, as many countries rushed to crosscurrents. Dollar rates against European launch medium-term borrowing programs to currencies and the yen swung over a broad range meet anticipated balance of payments deficits. in response to shifting market appraisals of the As a result, claims on foreigners reported by impact of the oil crisis and inflation on relative U.S. banks ballooned by a record increase of currency values, while episodes such as the well over $9 billion during the 4 months, Feb­ Herstatt Bank failure also had major effects on ruary through May. Even more importantly, the market activity and sentiment. energy crisis threatened to provoke a more rapid At the beginning of the year the dollar was and pronounced deterioration in our trade bal­ moving up strongly against some currencies to ance than originally expected, while Germany levels prevailing before the February 1973 de­ showed a continuing trade surplus of surprising valuation. The market’s bullish appraisal of the strength. dollar mainly derived from the favorable trends As this picture unfolded, dollar rates against in the U.S. payments balance that had emerged most European currencies fell steadily during during 1973, and the judgment that this country February to levels more than 10 per cent below could better cope with the damaging conse­ the January highs. Such recurrent declines in quences of the oil crisis than most other indus­ dollar rates threatened to generate speculative trial countries. Late in January, however, ex- pressures and disorderly trading, and the Federal change-market sentiment abruptly shifted Reserve accordingly resumed intervention on against the dollar, with selling pressures contin­ February 22. By the month-end, the Federal uing until mid-May. Reserve had sold $91.2 million equivalent of This adverse shift of market sentiment coin­ marks, financed by drawings on the swap line cided with the complete elimination of U.S. with the German Federal Bank, of which $3.7 capital controls on January 29 and the subse­ million was repaid with market purchases early quent easing of European barriers against capital in March. In addition, the New York Bank sold inflows. Moreover, U.S. interest rates had al­ $6.8 million equivalent of Belgian francs from ready begun to fall sharply while rates abroad System balances, as well as some $8.9 million held firm, and this swing in interest rate dif­ equivalent of German marks and $15.8 million ferentials temporarily provided a further strong equivalent of French francs from Treasury bal­ ances. Note.—Tables 1-4 appear on pp. 651 and 652. Meanwhile, the divergent trend between the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 637 U.S. weakening trade position and the contin­ dollar. Reports of this agreement appeared on ued strength of Germany’s export surplus had the news tickers on May 14 and immediately kindled renewed speculation about a revaluation brought about a scramble to cover short dollar of the German mark. During March the Federal positions. By the following day, the German Reserve intervened intermittently but in sizable mark and Swiss franc rates against the dollar amounts to sell a further $225.5 million equiva­ had fallen off by AVi per cent. lent of German marks, financed by additional The subsequent recovery of the dollar during drawings on the swap line with the German the late spring and summer months was solidly Federal Bank. These operations were conducted based on improving trends in the U.S. payments in close coordination with the German Federal position. U.S. trade figures for April and again Bank, which also supplied marks on a substan­ for June showed unexpected strength despite the tial scale both by buying dollars outright and burden of higher oil prices, while the German by intervening in the European Community trade surplus leveled off and then declined. A (EC) “snake” arrangement. In other operations pronounced tightening of credit conditions and during March, the New York Bank sold $10 sharply higher interest rates in New York also million equivalent of Belgian francs from Sys­ exerted a stronger pull on international capital tem balances and $17.9 million equivalent of funds, while U.S. bank lending abroad subse­ French francs from Treasury balances. quently slackened. As the oil-producing coun­ By April interest rates in the United States tries progressively saturated the capacity of the had turned around and began to move upward major Euro-dollar banks to handle short-term sharply while rates abroad were on an easing placements, flows of Organization of Petroleum trend, thereby progressively reversing earlier Exporting Countries (OPEC) funds into the U.S. interest-arbitrage differentials adverse to the credit markets grew in volume and revived United States. Moreover, trade figures for earlier market anticipations that such investment March showed a more modest U.S. deficit than flows would strengthen the dollar relative to generally expected in the market and a slightly other currencies unable to provide cortiparable reduced surplus for Germany. Nevertheless, the investment facilities. market remained fearful of a possible revalua­ Early in June the dollar experienced tempo­ tion of the German mark or disbanding of the rary selling pressure and the Federal Reserve EC snake. In addition, publication of first- made a further drawing of $17.1 million on the quarter figures, showing a drop in U.S. output German Federal Bank swap line, lifting total and a distressing acceleration of domestic infla­ mark debt outstanding to a peak of $381.7 tion, prompted gloomy market reassessments of million. Thereafter, the Federal Reserve steadily U.S. business and foreign trade prospects. accumulated mark balances, of which $122.8 Market sources also cited new disclosures in the million was used to reduce outstanding swap Watergate affair as having a depressing effect debt with the German Federal Bank to $258.9 on the dollar. As the dollar fell still further, million equivalent. The dollar came under some the Federal Reserve continued to intervene and selling pressure, however, following the an­ sold $51.6 million equivalent of marks in April, nouncement on June 25 of a poor trade per­ financed by further drawings under the swap line formance in May, and on the following day, with the German Federal Bank. the Herstatt Bank was closed. As a stabilizing Speculative overtrading against the dollar measure, the Federal Reserve sold $24.2 million continued until mid-May, at which point the of mark balances on June 28 and July 2. dollar had fallen 21 per cent below its January For some time the market had become in­ high against the mark. Against this background, creasingly concerned over reports of large Swiss, German, and U.S. officials attending the foreign exchange trading losses by banks in May meeting of the Bank for International Set­ various countries. The main impact of the Her­ tlements (BIS) reached agreement on the desir­ statt Bank closure, however, was to highlight ability of concerted exchange market operations the fact that even a spot exchange contract to counter excessive speculation against the involved a credit risk in which a bank might Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 accept payment on a currency trade but be As the mark came on offer, the Federal Re­ forced to close its doors before delivering the serve again accumulated mark balances that foreign exchange counterpart. As bank man­ were supplemented by a purchase of $132.3 agement throughout the world focused on this million equivalent of marks from the Bank of risk, traders severely limited new transactions Italy. These mark acquisitions enabled the Sys­ to only those names they considered of the tem to repay $194.2 million of outstanding swap highest quality. Initially, foreign exchange debt with the German Federal Bank on July 31, trading was further sharply curtailed as New leaving an outstanding commitment of $64.6 York Clearing House banks sought to make million equivalent. In addition, the System ac­ payments for their correspondents only after quired sufficient guilders to liquidate on July 30 assurance that covering receipts were in hand. the $2.3 million drawing on the Netherlands As this proved unworkable, the Clearing House Bank swap line. then modified its procedures to permit all par­ In summary, during the period under review ticipating banks to recall payments made provi­ the Federal Reserve intervened in support of the sionally in anticipation of receipt of funds. dollar to the extent of $527 million equivalent. These new arrangements facilitated a consid­ Of this amount, $139.3 million represented erable recovery in trading volume, although drawings on Federal Reserve and Treasury bal­ complaints over the recall feature continued to ances. The remaining $387.7 million was fi­ be voiced abroad. Over subsequent weeks trad­ nanced by Federal Reserve drawings on its swap ing in the spot exchange market gradually re­ lines with the German Federal Bank and the covered, but activity in the forward market Netherlands Bank. remained subdued. A more lasting consequence of the Herstatt affair was to compound the GERMAN MARK trading difficulties faced by small- and medium­ sized banks, not only in the foreign exchanges In late 1973 the German mark led the decline but also in the Euro-dollar market, as a world­ of European currencies against the dollar. By wide review of bank credit lines resulted in a early 1974, however, the market began to view tightening of credit limits for all but the very the previous rush into dollars as having been best names. overdone. A sharp bulge in demand for German In the thin and sensitive markets that appeared exports, on top of an already high level of in the wake of Herstatt, central banks tended foreign orders, had added another $1 billion a to move more quickly than usual to check sharp month to German exports, but the higher exchange-rate movements. On July 15-17, the monthly cost of Germany’s oil imports was Federal Reserve sold from balances $7.5 million estimated to be only half that amount. The equivalent of marks and $4.4 million of Belgian market now expected, moreover, that the francs to cushion declining dollar rates. Then prospective sharp rise of the U.S. oil import on July 24 a sudden rash of rumors of a guilder bill would erode the recent surge back into revaluation exerted speculative pressure on the surplus of the U.S trade balance. Inflation in dollar, which intensified following ticker reports Germany was already leveling off just above 7 of the Supreme Court decision on the Watergate per cent, while the rise in U.S. prices was tapes. The Federal Reserve intervened force­ continuing to accelerate. The market also antic­ fully that day and sold a total of $43.8 million ipated that the German Federal Bank would of marks from existing balances, together with maintain its strongly restrictive monetary policy $2.3 million of guilders financed by a drawing in an effort to reduce the inflation rate further. on the swap line with the Netherlands Bank. The interest rate disparity favoring Germany The dollar rate subsequently firmed up and was widening at the time when U.S. controls gained increasing buoyancy with reports the on capital outflows were terminated on January next day of a reduction in the German trade 29. These developments, combined with a sub­ surplus as well as an improved U.S. trade per­ sequent relaxation of German barriers to in­ formance during June. flows, set the stage for a massive outpouring Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 639 of funds from this country and reflows to Ger­ Reserve determination to maintain a firm mone­ many. tary policy and the need for a strong dollar in In late January and during February the Ger­ the struggle against inflation were underscored man mark was bid up sharply against the dollar by the April 4 testimony of Chairman Burns and EC currencies. The bidding for marks, with to the Congress. Meanwhile interest rates in particularly heavy trading by a relatively small Germany had eased, thereby reversing the pre­ number of banks, unsettled the market and viously adverse interest rate differentials against threatened to generate broader speculative pres­ the dollar. These developments, however, gave sures against the dollar. By February 22 the only a temporary respite to the rise in the mark market had advanced some 10 per cent from exchange rate. Expectations about the dollar rate its January lows and the Federal Reserve re­ soon soured on publication of U.S. gross na­ sumed intervention. The Desk was obliged^ to tional product (GNP) figures for the first quarter, operate fairly forcefully on occasion to avoid showing an unexpectedly severe drop in real the outbreak of disorderly conditions. By the output and an acceleration of domestic inflation month-end, the New York Bank had sold a total to a rate well above Germany’s. Exaggerated of $100.1 million equivalent of marks, $91.2 market expectations of a German trade surplus million equivalent for the System financed by as high as 7 billion marks for March prior to swap drawings on the German Federal Bank and release of the data in late April renewed the $8.9 million for the Treasury from balances. revaluation fever. Growing uncertainties sur­ Early in March the Federal Reserve purchased rounding the impeachment proceedings in $3.7 million equivalent of marks in the market Washington as well as new disclosures in the and used them to repay part of the swap debt. Watergate affair exerted a further depressing The rising German export surplus to almost influence on the dollar. $1.25 billion in January had sparked renewed Heavy speculative demand for marks redebate in that country over exchange-rate pol­ emerged just after mid-April, swamping the icy, and press commentary suggested that the effect of further increases in U.S. interest rates, German Government would welcome a rise or including on April 25 a Vi percentage point even revaluation of the mark. Official denials increase to 8 per cent in the Federal Reserve from the German Federal Bank helped clear the discount rate. By mid-May, the spot mark had air, but market talk of even more massive trade been ratcheted up to $0.42, fully 21 per cent surpluses for Germany and deficits for other above its January low and just 6 per cent below major industrial countries, including the United the peak reached in July 1973. This upsurge States, generated further strong demand for had pulled all the major European currencies marks. In late March German and U.S. Febru­ up to levels that many traders considered to be ary trade figures—a $2 billion German surplus unsustainably high. The Federal Reserve con­ and a much-reduced $200 million U.S. sur­ tinued to intervene to guard against disorderly plus—set off a new surge of the mark. To conditions. In April sales of marks drawn on maintain orderly conditions, the Federal Re­ the swap line totaled $51.6 million equivalent. serve intervened repeatedly, occasionally in In Frankfurt, the German Federal Bank made sizable amounts. For March as a whole, System additional dollar purchases and continued to mark sales amounted to $225.5 million equiva­ intervene in the EC snake arrangement. In the lent, all financed by additional drawings on the 3 months through mid-May, German Federal swap arrangement with the German Federal Bank intervention contributed to a $2.3 billion Bank. The German Federal Bank also purchased increase in German reserves. dollars on several days in Frankfurt and, with Despite such intervention, the market contin­ the mark pinned to the top of the EC band, ued to verge on disorder. Accordingly, repre­ provided marks for intervention against curren­ sentatives of the German Federal Bank, the cies of its partners in the “snake” as well. Federal Reserve, and the Swiss National Bank By early April interest rates in the United agreed at the monthly BIS meeting in Basle, States were clearly moving upward. Federal Switzerland, on a concerted plan of intervention Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 in marks and Swiss francs to counter excessive relationships with other banks. Trading in marks speculation against the dollar. The Federal Re­ was virtually paralyzed in New York and in serve was prepared to operate forcefully in the European markets; the large German banks in New York market, drawing further on the swap particular were reluctant to deal through brokers line with the German Federal Bank, while the or to participate in the daily fixing. Under these German Federal Bank and the Swiss National strained trading conditions, small- and me­ Bank were prepared to buy dollars in their own dium-sized banks found it difficult to raise markets. Reports of this agreement reached the needed funds either in the exchange or in the news services on May 14 and had an electrifying Euro-dollar markets to meet current obligations. effect on dollar trading. Dealers holding long To ease this situation, the German Federal Bank mark and short dollar positions scrambled for expanded Lombard and other credit facilities to cover. In 24 hours the mark rate plummeted provide additional liquidity on a selective basis nearly AVi per cent. As conditions in the ex­ to German banks. changes settled down, dealers began to respond The mark initially declined under the impact to the interest incentive favoring the dollar, and of the Herstatt Bank collapse, then leveled off the mark’s decline continued through the in extremely limited interbank dealing. In this month-end. As the mark declined, the Federal situation of unusual market sensitivity, how­ Reserve purchased modest amounts of marks to ever, the central banks were prepared to inter­ cover its swap indebtedness. vene more promptly, and the Federal Reserve Revaluation jitters reappeared during the June sold a total of $31.7 million equivalent of mark 1-2 French-German summit meeting, and the balances from late June through mid-July. mark was once again bid upward. To moderate Shortly after midmonth a news report that the the rise of the mark rate, the Federal Reserve International Monetary Fund (IMF) had recom­ sold $17.1 million equivalent drawn on the swap mended a revaluation of the Netherlands guilder line, thus raising outstanding drawings to a peak prompted a speculative run-up in the guilder. of $381.7 million equivalent. Moreover, the The selling of dollars soon spilled over into German Federal Bank was again obliged to other markets, and the mark also began to provide marks against EC snake currencies. The advance. Such speculation intensified on July mark subsequently resumed a gradual decline 24, when the Supreme Court’s decision on the through most of June. By June 25, the mark Watergate tapes was announced. The Federal had dropped more than 7 per cent from its Reserve responded by intervening forcefully, mid-May high to $0.3881 and had receded from through sizable offers of marks as well as of the top of the EC snake. The Federal Reserve guilders. By the end of that day, total sales of took advantage of this situation to purchase marks had reached $43.8 million equivalent. sufficient marks to reduce its swap drawings to The subsequent recovery of the dollar was $258.9 million by the end of the second quarter. reinforced by news of a halving of Germany’s Throughout the spring, reports that several June trade surplus to around $1 billion and of banks in various countries had incurred large a cut by two thirds in the U.S. June trade deficit. foreign exchange losses generated growing Rapidly moving political developments in market concern about the extent of speculative Washington kept the market on edge, but ex­ overtrading. Against this background, the June pectations of renewed intervention by the Fed­ 26 closing of the Herstatt Bank, a major German eral Reserve provided a steadying influence. By private bank, by the German banking authorities the month-end, the mark had declined to had a far-reaching market impact. The bank was $0.3865, about 8 per cent below its May peak, closed partly in consequence of large foreign and had fallen to the bottom of the EC band. exchange losses and left many banks both in During July the Federal Reserve took advantage Germany and abroad with unsatisfied claims on of the stronger dollar to accumulate additional the Herstatt Bank. Throughout the world, bank mark balances through the market. Moreover, managements moved to reassess their own the System arranged to purchase $132.3 million foreign exchange positions and their dealing equivalent of marks from the Bank of Italy. Italy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 641 had obtained the marks from a multicurrency trade union conflicts, however, the market at­ drawing on the IMF. Using these resources the mosphere improved. Moreover, the renewal of System repaid a further $194.2 million equiva­ exchange-rate guarantees—this time against the lent of swap drawings on the German Federal weighted average of a number of currencies—on Bank, leaving $64.6 million equivalent out­ official overseas-sterling-area balances held in standing on July 31. London was seen as forestalling large-scale switching into other currencies. With money remaining tight in London, first-quarter inflows STERLING amounted to more than $1.5 billion. Thus, ster­ Early in 1974 the United Kingdom faced a» ling continued to rise along with most other unusually difficult economic situation. Despite European currencies against the dollar through wage-price restraints and tight monetary policy, much of March, reaching $2.36 after the middle accompanied by historically high interest rates, of the month. prices were rising at a 15 per cent annual rate, The market nevertheless remained concerned and the rise was accelerating. The trade balance over sterling’s prospects. The previous disloca­ was registering a near $1 billion monthly deficit tions of production coupled with the vastly and was expected to worsen as the full impact increased oil import bill aggravated Britain’s of higher oil prices was felt. Real economic large foreign trade deficit, and inflation threat­ growth had fallen off sharply, and financial ened to erode once again Britain’s international strains were apparent, especially among the competitiveness. The March 26 budget mes­ smaller banks and in home mortgage financing. sage, announcing new fiscal measures largely A 3-day workweek was imposed to conserve neutral on aggregate domestic demand as well the nation’s fuel supply, which had been as substantial new credit lines to bolster Brit­ sharply reduced by a confrontation between the ain’s reserves, helped reassure the market. The miners and the Government. This dispute new credit lines included an increase of $1 heightened political tensions and tended to billion to $3 billion in the swap line between crystalize trade union opposition to wage and the Bank of England and the Federal Reserve price controls. In early February, following the and arrangement of a $2.5 billion Euro-dollar miners’ decision to strike, an election was set loan—the largest single Euro-currency loan ever for February 28. contracted—to be taken down as needed. These Sterling came under periodic bouts of selling lines would supplement the almost $3.5 billion pressure, which drove it down to a low of previously borrowed by Britain’s public author­ $2.1514 in mid-January and kept it relatively ities. Sterling retained some buoyancy in the weak through early February. The pound there­ exchanges and, when speculative selling of dol­ fore depreciated substantially against the conti­ lars developed just before the month-end, the nental European currencies, which were then pound was briefly swept up to $2.42%, before advancing strongly against the dollar. By mid- settling back to just below $2.40 early in April. February, however, the attraction of unusually The pound also gained ground against the cur­ high short-term interest rates in London, to­ rencies of Britain’s EC partners. gether with the persistent and expanding needs With sterling thus on a better footing in the for sterling by oil companies to meet tax and exchanges, the British authorities believed royalty payments to oil-exporting countries, themselves to be in a position to relieve some began to strengthen sterling. The rate then of the tensions that had built up in domestic tended to follow other European currencies in financial markets as a result of the sharp run-up their rise against the dollar, moving up nearly of interest rates over previous months. The Bank to $12.31 % just before the election. of England reduced its call for special deposits The establishment of a minority Labor gov­ from 4V2 per cent to 3 per cent and successively ernment was greeted with some caution by the cut its minimum lending rate from 12% per cent market. After the Government quickly moved to 12 per cent. Market interest rates in the to restore a normal workweek and resolve the United Kingdom also fell back from their his­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 torically high levels, before leveling off. Mean­ movements and to avoid the emergence of dis­ while, interest rates in the U.S. and Euro-dollar orderly trading conditions. markets were advancing, tending also to narrow interest differentials in favor of sterling. The SWISS FRANC spot pound turned somewhat easier through mid-April. As the dollar then came under gen­ Early in the year, inflation in Switzerland rose eralized speculative pressure, sterling moved to 10 per cent per year under the impact of moderately higher once more, gaining nearly 2 higher oil prices. To curb inflationary pressures, per cent against the dollar between mid-April the Swiss authorities relied primarily on a re­ and mid-May. strictive monetary policy, including incremental When the speculative surge of European cur­ reserve requirements against domestic and rencies was suddenly broken, following press foreign liabilities, credit ceilings, and non-in­ reports of possible concerted central bank inter­ terest-bearing penalty deposits against loan vention in support of the dollar, sterling de­ growth above the prescribed 6 per cent limit. clined against the dollar much less sharply than This policy, supported by the Swiss National other European currencies. From mid-May, the Bank’s abstention from intervening in the depressing effect of a huge current-account def­ foreign exchange market, had resulted in a icit on the sterling rate was nearly offset by an marked tightening of bank liquidity and an ac­ increasing demand for sterling for tax and roy­ companying firming of Swiss and Euro-Swiss alty payments to the OPEC members. In turn, franc interest rates. To moderate the ensuing these countries were investing the major share strain on Swiss financial markets, the Swiss of their sterling accruals in high-yielding ster­ National Bank at the end of January reduced ling instruments. In addition, reports that po­ required reserves by 20 per cent and reduced tential British North Seas output of gas and oil limits on nonresident borrowings in Switzer­ would greatly exceed earlier forecasts lifted land. Joining in the widespread dismantling of some of the market’s pessimism about the out­ capital controls, the Swiss authorities lifted the look for British trade. The pound settled near prohibition on nonresident investment in Swiss $2.40 in early summer in the reduced and cau­ securities and mortgages. tious trading that followed the closing of the The lifting of controls opened the way for Herstatt Bank in Germany. an influx of funds, and the Swiss franc rate led Thereafter, the British Government continued the sharp rise of continental currencies against to grapple with strong inflationary pressures and the dollar. By late February the spot rate had a worsening trade position, on the one side, and risen to $0.3280, some 12 per cent above midon the other, a weakening trend of real output January lows. Strong demand for the Swiss and income. Monetary policy was kept rela­ franc, reinforced by a spillover from the rapidly tively firm, while on July 22 the Government rising German mark, continued in March, lifting announced a moderately stimulative package of the Swiss franc a further 3 per cent. fiscal measures, including a cut in the value- Meanwhile, Swiss credit markets were tight­ added tax to boost private spending. This com­ ening drastically. Short-term Swiss and Eurobination of policies, less reflationary than some Swiss franc rates firmed almost to mid-January had feared, helped maintain a firm undertone levels, drawing funds away from longer-term for sterling. News that Iran had agreed to lend placements. To alleviate this pressure, the Swiss up to $1.2 billion to British industry over the National Bank provided temporary liquidity be­ next 3 years and the continuing demand for ginning April 3 by arranging dollar swaps with sterling by oil companies also helped buoy the the commercial banks, a technique ordinarily pound. By the end of July, sterling, at $2.38%, employed only at month- or quarter-end. The was still almost 7 per cent above its early-Feb- National Bank injected more permanent liqui­ ruary lows. During the 6-month period under dity by reducing minimum reserves on both review, the Bank of England intervened in the domestic and foreign bank liabilities. The cen­ market intermittently to moderate exchange-rate tral bank also raised the ceiling on the growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 643 of bank credit for the period to July 1974 by Euro-Swiss franc interest rates. The authorities 1 percentage point, to 7 per cent per annum, responded with further swap assistance to keep while easing the burden of penalty deposits on Swiss franc interest rates in line with corre­ excess lending. Although Swiss interest rates sponding Euro-dollar rates to avoid sizable turned lower in response, speculative demand shifts of funds out of long-term markets. for francs continued strong. The franc followed Late in July, the Swiss franc moved up on the continuing rise of the mark in early May, rumors of a Dutch guilder revaluation and rose as political uncertainties elsewhere in Europe still further when the dollar came more generally and in the United States stimulated flows into on offer following the Supreme Court’s Water­ the franc. By May 14 the spot rate had been gate tapes decision. In line with other European swept up to $0.3588, more than 20 per cent currencies the Swiss franc subsequently dropped above its January lows. back to $0.3378, about 6 per cent below its May In the highly charged speculative atmosphere highs. that had developed, the report of an agreement among the Federal Reserve, the German Federal JAPANESE YEN Bank, and the Swiss National Bank on intended concerted intervention to prevent a further ero­ Dependent on imported oil for over 70 per cent sion in dollar rates prompted an immediate of its energy needs, Japan was particularly vul­ reversal of market psychology. The spot franc nerable to the economic impact of the energy came heavily on offer, tumbling 43A per cent crisis. Already suffering from a sharp upsurge in 24 hours. As dealers continued to cut out of domestic inflation and a massive adverse long positions, the rate eased another 2 per cent swing in both trade and capital accounts, the to $0.3360 by the end of May. higher cost of oil was expected to exacerbate Liquidity pressures remained a matter of of­ the rise in production costs and to add signifi­ ficial concern in Switzerland. To reduce the cantly to Japan’s import bill. The yen thus had strain on the longer-term markets, on May 21 come under increasing speculative pressure late the authorities temporarily closed the Swiss in 1973. The authorities responded with a series capital market to issues of foreign bonds. The of measures. They stiffened monetary policy, following week they also agreed to extend applied direct measures to conserve oil and growth limits on bank lending to guard against electricity supplies, and shifted the pattern of an excessive rise in short-term interest rates. As capital controls to encourage inflows and slow liquidity tightened toward the quarter’s end in outflows. In addition, the Bank of Japan inter­ June, the National Bank again entered into dol­ vened to moderate the continuing erosion of the lar swaps and cut minimum reserve require­ yen rate, which reached levels that prevailed ments further. These actions helped prevent a before the yen was floated by mid-January. further tightening of liquidity, and the franc These actions, together with the termination moved generally in line with other European of U.S. capital controls at the end of January, currencies during June. turned the tide, as Japanese banks stepped up The June 26 closing of Germany’s Herstatt their borrowings in the U.S. and Euro-dollar Bank had a considerable psychological impact markets to finance Japanese imports of oil and on the Swiss market. Amidst rumors that other other commodities. In addition, Japanese resi­ banks might be afflicted with large foreign ex­ dents sold dollars to comply with new restric­ change losses, trading dropped off precipi­ tions on their foreign-currency holdings. Con­ tously. Swiss banks sought to improve their sequently, the yen recovered 4 per cent by late liquidity positions beyond normal levels and February and strengthened another 4 per cent reassessed the risks of exposure to their corre­ in March in response to a seasonal build-up of spondents. Some banks were left with open export receipts. Late in March the Bank of Japan positions following the Herstatt closing and had intervened by purchasing dollars in small to find cover by bidding for francs. These added amounts for the first time since February 1973. demands put upward pressure on Swiss and During the spring and early summer, Japa­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 nese banks continued to expand their net foreign serves, the market gradually moved back into borrowings. Also, in response to foreign ex­ better balance. Following the termination of change controls, long-term investment abroad U.S. capital controls late in January, the franc slowed to $1 billion equivalent in the second joined in the general upsurge of European cur­ quarter, compared with $1.5 billion 3 months rencies. before. Japan’s trade balance, which had sunk The franc’s advance continued into the early to a seasonally adjusted $1.25 billion deficit in spring, although France’s current account was the first quarter, moved back into surplus by rapidly moving into substantial deficit. Helping June, as both imports and exports responded to to buoy the spot rate were reports of additional a slowdown in the domestic economy. French public-sector borrowings, totaling over Despite this improvement in Japan’s balance $1 billion. In addition, the French authorities of payments, settlement of import bills, repre­ announced in March new measures to contain senting payments for goods shipped into the pressures on capacity and to bolster the balance country in previous months, strengthened the of payments. They also terminated the two-tier demand for dollars in Tokyo. The yen conse­ exchange market. In response, the franc occa­ quently eased gradually by some 3 per cent to sionally outpaced other European currencies that $0.003520 by the end of June. The yen’s decline were also gaining strongly against the dollar. accelerated in July, however, as rumors circu­ On these occasions, the Federal Reserve Bank lated that the Japanese banks were approaching of New York stepped in to provide resistance their credit limits abroad. The Japanese authori­ to an excessive rate movement, selling for the ties requested the banks to refrain from exces­ U.S. Treasury $15.8 million equivalent of sive foreign borrowings and, to help the banks francs on February 27 and $17.9 million on repay their dollar borrowings, placed additional March 20. By March 28, the franc was trading official deposits with the banks. around $0.21, over 10 per cent above its mid- Nevertheless, the volume of import payments January lows. continued to swell, and by the month-end the In early April the franc eased as the death spot yen had dropped back to around its January of President Pompidou on April 2 and prospects lows. To resist the decline, the Bank of Japan of new presidential elections weighed on market resumed occasional support of the yen through psychology. In addition, expectations of a moderate sales of dollars. Further adjustments mounting German trade surplus became an in­ in Japanese exchange control provisions re­ creasingly depressing influence on the French lieved much of the selling pressure, and by franc as well as the dollar. The franc’s decline mid-August the yen rate had stabilized. was cushioned by the steady conversion of Euro-dollar borrowings by private- and publicsector enterprises. Nevertheless, by May the FRENCH FRANC franc had dropped over 4 per cent to $0.2020, The precipitous rise in Mideastern oil prices late while sliding over 8 per cent against the mark last year threatened a $5 billion deterioration and other snake currencies. After the election in France’s trade account and a near doubling of President Giscard d’Estaing, the franc again of France’s rate of inflation. To protect reserves began to move more closely with EC snake and employment in the face of such an adverse currencies, and by May 14 the spot franc had shift in the balance of payments, the French recovered against the dollar almost to its late authorities temporarily withdrew from the EC March levels. monetary arrangement and allowed the French In late May rumors that a return of the franc franc to float independently on January 19. to the EC snake was imminent circulated with Initially, the franc dropped by about 5 per cent. increasing frequency. Traders particularly ex­ After the initial impact of this decision had pected the June 1-2 French-German summit dissipated, however, and reports circulated that talks to produce an economic package designed the Government was arranging a $1.5 billion to adjust intra-EC trade imbalances and to Euro-dollar borrowing to augment official re­ smooth the way for a return of the franc to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 645 snake without a franc devaluation. Conse­ economic fears, combined with serious political quently, the franc held relatively firm through and social uncertainties, generated large specu­ late May. When the franc did not rejoin the EC lative capital outflows. The lira came under arrangement after the summit talks, however, renewed selling pressure in January, plunging the franc’s buoyancy faded and the spot franc, to $0.001480, and lost ground vis-a-vis other too, slipped back early in June. European currencies as well. Meanwhile, spiraling oil costs had pushed the Concerned that a further weakening of the lira rate of inflation almost to 15 per cent, and the and a corresponding deterioration in Italy’s trade balance (on a customs basis) had swung terms of trade would aggravate domestic infla­ into a deficit of $750 million in May. The tionary pressures, the Italian authorities inter­ Government responded by announcing a broad vened heavily in support of the spot lira. Such stabilization program on June 12, including in­ intervention was financed from the proceeds of creased corporate and personal income taxes, foreign borrowings by Italian public enterprises continued restraints on credit growth and petro­ as well as new Bank of Italy swaps with the leum consumption, and incentives for personal commercial banks. To bolster reserves, several savings. A week later the Bank of France fol­ new public sector borrowings were arranged. lowed up by raising its discount rate a full 2 Moreover, the swap line between thfe Bank of percentage points to 13 per cent. As market Italy and the Federal Reserve was increased by interest rates in France then climbed to record $1 billion to $3 billion, effective February 1, levels, short franc positions were quickly cov­ and after midmonth the Italian authorities an­ ered. In contrast to other European exchange nounced that negotiations were under way for markets, trading in the Paris market remained a $1.2 billion IMF standby credit. Although active following the Herstatt closure. As some news of additional credit facilities was well French traders repatriated funds from Germany, received in the market, pessimism over Italy’s the franc strengthened and the Bank of France domestic economic situation and trade perform­ bought dollars to moderate the rise. ance remained deeply entrenched, and the Bank In July the franc was pulled up further in the of Italy intervened heavily to keep the lira in generalized speculative run-up of European ex­ line with the other EC currencies as they firmed change rates following rumors of the guilder against the dollar in February. Later that month, revaluation, and the Bank of France continued pressure on the lira intensified as a division over to purchase dollars to moderate the upswing. economic policy led to the dissolution of the After this speculative outburst, the franc de­ cabinet on March 1. clined only slightly against the dollar, in con­ The prompt formation of a new government trast to other European currencies, as an im­ under Premier Rumor was followed by a se­ provement in France’s trade figures—together quence of counter-inflationary measures that with a sharp fall in the German trade surplus temporarily firmed the lira rate. Monetary policy for June—raised hopes that European trade was was tightened, as the Bank of Italy imposed a moving into better balance. By the month-end, 1-year ceiling on the growth of most categories the franc was trading near $0.2140, its highest of bank lending and raised its basic discount level since December 1973. rate 2Vi percentage points to 9 per cent. These actions triggered an immediate escalation of private borrowing and lending rates. The Gov­ ITALIAN LIRA ernment moved to increase the value-added tax The steep rise in oil prices at the end of 1973 on nonessential consumer goods to discourage had very serious implications for Italy, which imports, raised prices for some government ser­ depends on imported oil for about 80 per cent vices, and strengthened income tax provisions. of its energy needs. The oil crisis threatened In addition, new regulations on the export and to add another $5 billion to a trade deficit import of lira bank notes were also imposed by already running at $4 billion in 1973 and to the Government, and on March 22 the two-tiered accelerate domestic inflation still further. These foreign exchange market was abolished in favor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 of a uniform market for commercial and finan­ the Herstatt Bank failure. During July the Bank cial transactions. of Italy was a net buyer of dollars in the market. These various measures were initially wel­ By the month-end, the spot rate had settled near comed in the exchange markets, but as traders $0.001555, some 5 per cent above its mid-Jan­ began to question their effectiveness, the selling uary lows. of lire was resumed. The authorities continued to provide substantial support to the lira to keep CANADIAN DOLLAR it generally in line with other EC currencies, which were rising sharply against the dollar. By The prospects of a continuing surplus in Can­ the end of March, official support for the lira ada’s trade balance provided a firm undertone had swelled since the beginning of the year to to the Canadian dollar early in 1974. As a major over $3 billion. The intervention was financed exporter of raw materials and industrial com­ in part by new foreign borrowing including EC modities, Canada was expected to benefit from short-term support. By the quarter-end the total the historically high commodity prices. More­ of Italy’s medium-term Euro-dollar borrowing over, as Canada is largely self-sufficient in oil, came to about $9 billion. its trade position was seen as unaffected by the In April Italy’s trade deficit, running at $1 sharp increase in oil prices that was swelling billion a month, continued to weigh on the the import bill of other developed countries. The market, and the lira required almost daily offi­ positive market assessment for the Canadian cial support. The Italian authorities moved at dollar was further reinforced in January when the end of April to reinforce their earlier mone­ U.S. interest rates dropped off sharply, Cana­ tary restraints by imposing a 50 per cent im- dian rates held steady, and interest differentials port-deposit requirement on most categories of shifted in favor of Canada. imports. This measure, implemented early in With this shift stimulating substantial short­ May, gave a lift to the lira, which in any case term inflows, the Canadian dollar enjoyed a was marked up somewhat in the general resur­ broadly based advance that was sustained by gence of speculation against the dollar that both strong commercial and professional de­ peaked toward mid-May. Even before the dol­ mand late in January. Positioning ahead of con­ lar’s mid-May recovery, however, continued version of provincial borrowings abroad, out­ uncertainties had begun to weaken the lira rate right forward purchases of Canadian dollars, against other European currencies. The market and cuts in U.S. prime rates provided further became increasingly unsettled after new figures impetus to the upswing through February. By showing the extent of the balance of payments the month-end, the Canadian dollar had climbed deterioration were released. Moreover, grim almost 3 per cent to above $1.03%. In mod­ appraisals of the Italian economy by responsible erating the rise, the Bank of Canada had pur­ leaders inside and outside the Government un­ chased sizable amounts of U.S. dollars, thereby derscored the seriousness of the situation. As contributing to the $429 million increase in the debate over economic policy provoked a reserves for the first 2 months of the year. cabinet crisis in early June, the lira dropped to From March to mid-April the Canadian dollar as low as $0.001531. steadied, fluctuating narrowly around $1.03 in The cabinet was quickly re-established, how­ response to actual or prospective interest rate ever, and additional stabilization measures were incentives. Then, on April 15, the Bank of adopted, including a renewed effort to bring Canada raised its discount rate a full percentage Government expenses under control. At the point to 8V4 per cent to temper the strong de­ same time, the monetary restraints in force since mand for domestic credit and to bring it in line March began to bite, leading to a tightening of with higher interest rates abroad. The commer­ liquidity and a consequent reversal of capital cial banks soon followed by raising their prime outflows. The lira therefore improved in June rates, and as Canadian interest rates rose, de­ and remained steady in the atmosphere of cau­ mand for Canadian dollars swelled. The spot tious dealing that developed in all markets after rate soon was pushed above its February peak, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 647 to just below $1.04% on April 25 even as the Meanwhile, in response to signs of a slack­ Bank of Canada again purchased dollars to ening of domestic economic activity, plans were moderate the advance. announced to provide moderate stimulus Concern that the Liberal government might through tax reductions and higher Government lose a confidence vote on its upcoming budget expenditure. In addition, the Netherlands au­ proposals led to a brief downturn in the Cana­ thorities remained concerned over an undue dian dollar early in May. Although an election tightening of money market conditions. As ear­ was eventually called, the spot rate held firm lier official swaps with Dutch commercial banks as a further rise in interest rates and a second matured, they were rolled over or replaced with increase in the Bank of Canada’s discount rate outright purchases of spot dollars by the central to 8 3A per cent continued to attract short-term bank. Furthermore, the cost of central bank funds from abroad. By May 23 the Canadian credit was reduced during February and early dollar was again trading near $1.04. March. As a result of these actions, Dutch In mid-June, however, the Canadian dollar interest rates eased somewhat, and by midbegan gradually to weaken. Canadian interest March the guilder, while holding relatively firm rates were now lagging behind the uptrend of against the dollar, had eased against other EC U.S. rates. In addition, Canada’s trade account currencies. had weakened, and by June it dropped into Later in March, rumors of a possible revalu­ deficit. The spot rate continued to slip, even ation of the mark led to bidding for guilders, after a clear-cut victory for the Liberal govern­ reflecting expectations that the guilder would ment in the July elections cleared away political follow a mark revaluation. The guilder at first uncertainties, and the Bank of Canada raised kept pace with the mark, climbing to $0.3738, the official discount rate further to 9XA per cent. even as the Netherlands Bank purchased dollars By the end of July, the dollar had dropped below to moderate the advance. As speculation fo­ $1.02% and the Bank of Canada had intervened cused more and more on the mark, however, to moderate the steady erosion. Over the course the guilder dropped to the floor of the Et band, of the 2-month slide the Canadian reserves de­ where it was supported by the Dutch and Ger­ clined some $200 million. man central banks. To relieve such pressure on the guilder, the Netherlands Bank tightened domestic liquidity by allowing maturing swaps NETHERLANDS GUILDER with the commercial banks to run off. This In late 1973 the Mideast oil embargo on the operation had the desired effect, and by May Netherlands and the sharp rise of oil prices had 14 the guilder had fluctuated sharply higher with initially prompted pessimistic assessments for the mark to $0.3983. the Dutch economy. By mid-January, however, Following reports from Basle on May 14 that such fears had begun to lift. The nation’s strong concerted central bank intervention had been underlying payments position, a $1.75 billion planned to support the dollar, the guilder fell surplus in 1973, provided ample room to with­ off from its peak levels. A temporary easing stand the estimated $1.25 billion in higher oil of the Amsterdam money market accentuated costs, and revenues from the Netherland’s natu­ the decline. By late May the guilder had again ral gas exports were expected to benefit strongly fallen to the bottom of the EC snake, as well from the energy shortage. as to the floor of an almost fully extended Following the widespread relaxation in early Benelux band where it traded with only brief 1974 of capital controls, high Dutch interest interruption through late June. rates stimulated some reflow of funds to the The closing on June 26 of the Herstatt Bank Netherlands. In late January and February the brought both spot and forward trading in Am­ guilder rose more rapidly against the dollar than sterdam virtually to a halt. Trading recovered most other European currencies, climbing 10 only hesitantly over succeeding days. The cov­ per cent from mid-January lows to $0.3635 in ering of short positions in guilders left exposed late February. by the Herstatt collapse gave some buoyancy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 to the guilder rate by mid-July. Some interest- BELGIAN FRANC induced inflows and nonresident purchases of guilder-denominated securities also contributed By the end of 1973 Belgium’s restrictive mone­ to the rise. The firming tendency was also in tary policy had contributed substantially toward part the result of a more positive market outlook holding the inflation rate just under 7 per cent. for the Dutch payments position that emerged Domestic restraint permitted strong export de­ after termination of the oil embargo on July 10 mand to widen the current-account surplus to of this year. $1.5 billion for the year as a whole. The sudden Circulation in the Amsterdam press on July increase in oil prices, however, threatened to 23 of a report that an IMF study group had erode the current-account surplus for 1974 by recommended a guilder revaluation touched off an estimated $1.75 billion and to set back earlier a scramble for guilders. Although the report was progress toward bringing inflation under control. officially denied, the guilder nevertheless rose In late 1973 the Belgian franc weakened sharply to the top of the snake, while a more generalized against the dollar and settled to the bottom of speculative movement against the dollar devel­ the EC band. oped. The Supreme Court’s decision on the In early 1974 the Belgian franc participated Presidential tapes led to further dollar selling in the general strengthening against the dollar. on July 24. That day the Federal Reserve placed Joining other countries in relaxing capital re­ sizable offers of guilders in the New York strictions, Belgium lifted the prohibition on in­ market. This was done in coordination with the terest payments to nonresidents and the 100 per Netherlands Bank, which had purchased dollars cent reserve requirement on nonresident ac­ outright in the Amsterdam market and sold counts. To bring Belgian interest rates more in guilders against other EC currencies. The mar­ line with those in other EC countries, the Na­ ket backed away from the Federal Reserve of­ tional Bank raised its discount rate by 1 per­ ferings, and only $2.3 million equivalent of centage point to 8 3A per cent on February 1. guilders was actually sold. The Federal Reserve After this move the Belgian commercial franc financed these sales by a swap drawing with the advanced more rapidly against the dollar than Netherlands Bank. The guilder closed the day most European currencies and rose to the top at $0.3895, off some one-half of a percentage of the EC snake. The rate reached $0.025100 point from its high. by February 22, over 10 per cent above its Wire service reports late on July 24 of Federal mid-January lows. Reserve intervention in guilders and marks had At this point the Federal Reserve intervened a steadying effect on the market the next day. with offers of Belgian francs along with other The Netherlands Bank reinforced this effect with currencies. The Federal Reserve sold $6.8 mil­ additional dollar purchases early in the morning. lion equivalent of francs from balances accu­ After the New York opening, a categorical mulated earlier in the month when the franc was official Dutch denial of any revaluation plans still weak within the EC snake. The Belgian led to further easing of the guilder against the franc was again pulled up against the dollar in dollar and movement of the guilder to well the wake of speculative pressures on the German below the top of the snake. With the guilder’s mark. The Federal Reserve intervened on March easing, the Federal Reserve was able to pur­ 20 with sales of $10 million equivalent of Bel­ chase the $2.3 million equivalent of guilders gian francs, also from balances. Rumors of a needed to liquidate its swap debt. German mark revaluation persisted, and the The guilder’s decline was subsequently ac­ Belgian franc soon dropped to the bottom of celerated by announcements of a greatly reduced the EC band where it required intervention pe­ U.S. trade deficit for June and of a swing of riodically throughout April and early May. the Dutch position into deficit for May. By the Against the dollar, the spot franc was dragged end of July the spot rate for the guilder had up by the mark to a high of $0.027235 on May fallen back to $0.3810, over AVa per cent below 14, almost 20 per cent above its January lows. its May high. During these months, Belgium’s rate of in­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 649 flation increased and reached an annual rate of EURO-DOLLAR 11 per cent. The National Bank responded by progressively tightening its monetary restraints During the period, the oil price escalation with at a time when domestic liquidity was already its attendant balance of payments problems being contracted by foreign exchange outflows. subjected the Euro-currency markets to heavy The National Bank cut commercial banks’ dis­ demands. In general, countries around the world count quotas and stiffened reserve requirements depending on oil imports rushed to the Euro­ against bank credit expansion, while reserve market to finance their expected needs, attempt­ requirements on time deposits were eased. ing to extend the maturities out as far as possi­ These new monetary restraints helped push ble. As the flow of funds to OPEC members Belgian interest rates above levels prevailing in subsequently swelled, they placed a large share other countries participating in the EC snake of the excess over current expenditures in the arrangement. Also tending to strengthen the Euro-currency market but mainly for very franc was the formation in April of a new short-term maturities. Banks were thus faced government under Premier Tindemans, which with an increasingly difficult problem of recon­ relieved the uncertainties of a 3-month govern­ ciling the maturity differentials between their mental crisis. In mid-May, once the speculative claims and liabilities. In addition, following movement into marks tapered off and the snake disclosures of foreign exchange losses by sev­ moved lower against the dollar, the franc began eral banks, bank managements reacted by to strengthen against other EC currencies. By strengthening their internal controls and by early June the Belgian franc re-emerged at the tightening their credit limits for all but the very top of the EC band. best names. The Belgian authorities continued to tighten As a result, a multitiered rate structure their anti-inflation program. In early summer the emerged, and many smaller banks and even Government announced a budgetary plan, pro­ large banks of some countries had to 'pay pre­ viding for increases in taxes to ensure an equi­ miums over rates at which prime banks could librium in the 1975 budget. The National Bank obtain funds. One consequence of this tieredreplaced an expiring gentlemen’s agreement rate pattern was that many banks at rollover limiting commercial bank credit expansion with dates for syndicated term loans were obliged to new legal rules. Based on this authority, it cut refinance their commitments at rates above the credit expansion limits for the next 4 months London interbank deposit rate on which the from 17 to 14 per cent. Reinforced by these floating interest rates to be charged to borrowers new restraints, the Belgian franc traded steadily are contractually based. around $0.026400 and remained firm within the Despite its segmentation, the Euro-currency EC and Benelux bands, while the German mark market continued to expand at an impressive and certain other currencies fell from their rate between February and July. During the speculative peaks. early months of the year official and semiofficial In late June and July the National Bank peri­ borrowers in the United Kingdom, Italy, and odically bought EC currencies to keep the franc France obtained loan commitments of close to within the snake and Benelux limits and regu­ $10 billion in anticipation of mounting oil defi­ larly purchased small amounts of dollars to cits. The market was also tapped by developing assist in this effort. In mid-July the Federal countries, especially in Latin America and Asia; Reserve supplemented its sales of marks with by Eastern bloc borrowers, notably Yugoslavia; sales of $4.4 million equivalent of Belgian and by public-sector institutions in Spain and francs from balances to resist an excessive ero­ Greece. Among nonofficial borrowers, Japanese sion of dollar rates. When speculation over a banks entered the market on a large scale and guilder revaluation triggered a generalized sell­ soon became heavy net debtors, reversing their ing of dollars late in July, the franc rose but net foreign creditor position built up during dropped back by the month-end to $0.026280, 1972 and 1973. some 3V2 per cent below its May highs. In response to the heavy demands for funds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 in the Euro-currency market, interest rates were After pausing during May, Euro-dollar rates bid up providing a further incentive for recy­ resumed their climb and reached unprecedented cling into the market the rapidly growing oil levels in the aftermath of the Herstatt collapse. revenues of the OPEC countries. In addition, Thus, rates on 3-month maturities reached 14 the Euro-currency market received a strong per cent in mid-July, rising well above compa­ boost following the removal in January of U.S. rable U.S. certificates of deposit rates. In the restraints on capital outflows. Through late latter half of that month, rates generally fell spring U.S. banks and other financial and non­ back, but the July average rate as well as the financial institutions lent large amounts in the mid-August rate for the 3-month maturity was Euro-markets. During recent months, however, close to 13% per cent. whenever Federal funds rates climbed above Because of limits imposed by customary capovernight Euro-dollar rates, head offices of U.S. ital-asset ratios, many major intermediaries have banks stepped up their Euro-dollar takings from found it difficult to accept increasing amounts their overseas branches. Similarly, major of OPEC deposits. Some major banks have foreign banks arbitraged on occasion sizable refused to add to their Euro-currency footings; amounts of Euro-dollars into the U.S. money others have become more reluctant to accept market. very short-dated deposits and are quoting below More recently, market expansion has proba­ the market to discourage such supplies. As a bly slowed. A somewhat larger portion of ag­ result, some of the OPEC countries have been gregate OPEC accruals of surplus funds appear willing to place funds at somewhat longer ma­ to have been placed in the U.S. money market, turities. Still, the market remains confronted by although investments of Mideastern oil-produc- the sharp divergence of maturities at which ing countries in the United States still represent funds are placed and at which oil-importing only a fraction of that area’s current surplus. countries wish to finance their balance of pay­ Japanese banks became less insistent bidders ments deficits. While the market has so far made under instructions of their Government. To fa­ a major contribution to the recycling of funds cilitate this policy, the Japanese Finance Min­ from oil-producing countries to those with bal­ istry increased its dollar deposits with domestic ance of payments deficits, its capacity to con­ banks. In addition, Italian banks have reduced tinue such financial intermediation on a large their borrowings. scale may depend in part upon the availability Through May Euro-dollar rates tended to of deposits at longer maturities. Finally, as move closely with money rates in the United noted by Governor Wallich: “the problem of States. They bottomed out in late February, the weaker countries is obvious—they will when 3-month Euro-dollar maturities were just sooner or later find it difficult to attract funds above 8 per cent, and thereafter climbed steadily from the market as their debt burdens reach the until early May. This rise was in contrast to limit which the market should and probably will interest rate declines in some European centers. place on their borrowing capacity.” □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 651 TABLE 1 FEDERAL RESERVE RECIPROCAL CURRENCY ARRANGEMENTS In millions of dollars Increases during the Amount of period: facility, Institution Feb. 1- July 31, July 31, 1974 1974 Austrian National Bank ................... 250 National Bank of Belgium .............. 1,000 Bank of Canada ................................... 2,000 National Bank of Denmark ............ 250 Bank of England ................................. 11,000 3,000 Bank of France ..................................... 2,000 German Federal Bank ....................... 2,000 Bank of Italy ......................................... 21,000 3.000 Bank of Japan ....................................... 2.000 Bank of Mexico ................................... 180 Netherlands Bank ................................. 500 Bank of Norway ................................... 250 Bank of Sweden ................................... 300 Swiss National Bank ......................... 1,400 Bank for International Settlements: Swiss francs/dollars ....................... 600 Other authorized European currencies/dollars ....................... 1,250 Total ........................................... 2,000' 19,980 Effective date March 26, 1974. 2 Effective date February 1, 1974. TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent System Drawings, or System swap repayments (—) swap Transactions with— drawings, drawings Jan. 1, 1974 July 31, 1974 1974 I II July National Bank of Belgium ................. 261.8 261.8 f 255.0 130.4 64.6 German Federal Bank ........................... 1 -3.7 -122.8 -194.2J 2.3i Netherlands Bank ..................................... —2.3/ Swiss National Bank ............................. 565.0 |- 193.8 ::: } 371.2 Bank for International Settlements (Swiss francs) ....................................... 600.0 600.0 J 255.0 130.4 2.31 Total .................................................. 1,426.8 [-197.6 -122.8 -196.6 J 1,297.5 Note.—Discrepancies in totals are due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings Drawings, <o r Drawings on repayments (-) on Banks drawing on System System, System, 1974 Jan. 1, July 31, 1974 I II July 1974 Bank for International Settlements (against German marks) ................. f 26.0 76.0 5.01 j-26.0 -76.0 — 5.0 J f 26.0 76.0 5.01 Total ........................................................ 1-26.0 -76.0 — 5.0/ TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues, or Outstand­ redemptions (—) Outstand­ ing, ing, Issued to— Jan. 1, 1974 July 31, 1974 1974 I II July Swiss National Bank............................... 1,459.2 127.3 1,599.3 Bank for International Settlements .. 127.3 {-127.3} Total ................ 1,586.4 f 127.3] - %599.3 { -127.3} Note.—Swiss-franc-denominated security issued to the Bank for International Settlements was reissued to the Swiss National Bank at its maturity in January 1974. increase in amount outstanding reflects valuation changes upon renewals of maturing securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

653 Statement to Congress Statement by Arthur F. Burns, Chairman, to raise taxes or to make offsetting reductions Board of Governors of the Federal Reserve in other appropriations. System, before the Budget Committee of the This fragmented congressional consideration U.S. Senate, August 21, 1974. of the elements that make up the budget has contributed materially to the almost uninter­ It is a pleasure to meet with this committee as rupted succession of budget deficits. Since it undertakes its momentous responsibilities 1960, we have had a deficit in every fiscal year under the Congressional Budget Act of 1974. except 1969. True, some of these deficits oc­ In recent years Federal spending has risen curred because of efforts to use the Federal swiftly, deficits have become chronic, and the budget as a means of stimulating a lagging public debt has mounted. Our present grave economy, but for the most part we have allowed problem of inflation stems from many causes, deficits to happen without plan or purpose. Ma­ and inadequate fiscal discipline is prominent chinery for putting effective ceilings on expen­ among them. You and your congeners in the ditures, and for establishing priorities among House of Representatives therefore face a great alternative uses of Federal revenues, has simply challenge, but you also have a unique opportu­ not been available. nity to re-establish order in our Nation’s fi­ By passing the Budget Act of 1974, the nances. Congress has established a framework for exer­ The budget that the President recommends to cising this much needed control and has also the Congress at the beginning of each session indicated its firm resolve to do so. The Budget is the product of a systematic process aiming Act is a milestone in the reassertion of congres­ to establish an over-all limit on outlays in rela­ sional authority and self-discipline. There is tion to expected revenues, and to determine now real hope that we can avoid the massive priorities within the totality of outlays. This increases of Federal expenditure and the persis­ process, as you know, has hitherto had no tent deficits that have plagued us in the past. counterpart in the Congress. Instead, congres­ The immense importance of your committee’s sional decisions that determine the ultimate new responsibilities may perhaps be more fully shape of the budget have been taken by acting appreciated by reflecting on what has happened separately—or at times by taking no action—on to the Federal budget over the long sweep of a hundred or more entirely independent meas­ our Nation’s history. Total expenditures did not ures. It is only after separate votes are cast on reach the $100 billion level until fiscal 1962, housing, education, defense, welfare, and or nearly 200 years after the founding of the whatnot that we put the pieces together and Republic. By fiscal 1971, 9 years later, Federal discover what kind of a budget has emerged for spending had risen another $100 billion and thus the Federal Government. passed the $200 billion mark. In the budget as Thus, year after year, members of the now projected, the $300 billion mark will be Congress have been voting for or against larger passed this fiscal year. Clearly, the pace of benefits to veterans, for or against better Federal spending has been accelerating rapidly, schools, for or against cleaner air, and for or and a pause for taking stock of where we are against a host of other good things that Govern­ is overdue. ment can help to provide. But the Congress has One result of the sharply rising curve of not had the opportunity to vote on what total expenditures is that Government has been as­ outlays should be, or whether an appropriation suming an ever-larger role in the economic life for a particular purpose is needed badly enough of our people. In 1929 Federal expenditures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 accounted for less than 3 per cent of the dollar governmental spending and taxing may have value of our total national output, and expendi­ gone beyond prudent limits. tures at all levels of Government—Federal, Where the line should be drawn between State, and local—amounted to about 10 per cent governmental and private use of resources is, of the gross national product. By 1950 the share in the final analysis, a matter of judgment and of national output absorbed by Government had of social values. However this question is re­ risen to 23 per cent. Since that time, govern­ solved, it should be clear to everyone that Fed­ mental involvement in the economy has in­ eral spending, whatever its level, needs to be creased further; last year, Federal expenditures financed on a sound basis. Deficit financing by alone accounted for 22 per cent of our national the Federal Government can be justified at a output, and the combined expenditures of all time of substantial unemployment, but it be­ governmental units for 35 per cent. comes a source of instability when it occurs A significant increase over the past four dec­ during a period of high economic activity, such ades in the role of Government in economic life as we have experienced in recent years. The was inevitable. A growing population, and the huge Federal deficits of the past decade added increasing complexity of modern urban life, enormously to aggregate demand for goods and gave rise to new and expanded governmental services, but they added little to our capacity activities. This was also a period in which the to produce. They have thus been directly United States came to occupy a position of responsible for a substantial part of our present leadership in international political affairs and inflationary problem. in world economic development. The current inflation began in the middle Some part of the rapid upward trend of Fed­ 1960’s when our Government embarked on a eral spending, however, is attributable to wide­ highly expansive fiscal policy. Large tax reduc­ spread acceptance of the theory that social and tions occurred in 1964 and the first half of 1965, economic problems can generally be solved by and they were immediately followed by an ex­ quick and large expenditure of governmental plosion of Federal spending. New and substan­ monies. We have tried to meet the need for tial tax reductions followed in 1969 and 1971, better schooling of the young, for upgrading the and so too have massive increases of expendi­ skills of the labor force, for expanding the tures. In the last five fiscal years, that is, from production of low-income housing, for improv­ 1970 through 1974, the public debt—including ing the Nation’s health, for ending urban blight, obligations of the Federal credit agencies—has for purifying our water and air, and for other risen by more than $100 billion, a larger in­ national objectives, by constantly excogitating crease than in the previous 24 years. new programs and getting the Treasury to fi­ In the fiscal year just concluded, the condition nance them on a liberal scale before they have of the Federal budget failed to improve suffi­ been tested. ciently. True, the reported budget deficit de­ The result has been a piling up of one social clined to about $3% billion—a much smaller program on another, so that they now literally deficit than in the three preceding years. But number in the hundreds and practically defy in a year of such powerful inflationary forces, understanding. Not a little of our taxpayers’ the Federal budget should have been in surplus. money is being spent on activities of slight Moreover, when off-budget outlays and the ex­ value, or on laudable activities that are con­ penditures of governmentally sponsored agen­ ducted ineffectively. cies are taken into account, as I believe they Another result of the rapid growth of Federal should be, the total Federal deficit reached $21 spending has been a larger tax burden borne by billion last year, which is not much lower than our citizens, and a blunting of economic incen­ the extraordinary deficits of the three previous tives. Business capital investment in recent fiscal years. years has certainly been inadequate for a Nation The financing of these huge Federal deficits that is eager for rapid improvement in the gen­ has contributed powerfully to the upward pres­ eral welfare. There is thus reason to believe that sure on interest rates and the tension in financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 655 markets, which have been so troublesome of such a great and unique opportunity to serve late. The disturbing effect of Federal borrowing the Nation’s welfare. on the flow of funds was illustrated dramatically I recognize that you have a good deal of earlier this month, when the Treasury went to preparatory work to do before you can begin the market to refinance some maturing debt exercising fully your responsibilities under the obligations. Long lines of people formed at the Congressional Budget Act of 1974. The impor­ doors of the Treasury and the Federal Reserve tance of this preparatory effort should not be Banks to bid for the new securities offered by underestimated. A highly competent and the Treasury. Half of the total of $4.4 billion thoroughly objective staff will need to be as­ sought by the Government was obtained through sembled to carry out the functions of the Con­ noncompetitive bids—that is, from relatively gressional Budget Office. Good working rela­ small investors. A large share of these funds tions will need to be established between your undoubtedly came out of deposit accounts, and committee and the House Budget Committee thus further reduced the ability of our financial and between both committees and the Office of institutions—particularly savings banks and Management and Budget. Procedures will have savings and loan associations—to support to be worked out for implementing the intricate homebuilding activities. steps in the budgetary process set forth in the Despite such concrete evidence, it is some­ Budget Act. Some flexibility is needed in con­ times contended that the Federal deficits of gressional management of our enormously recent years have been only a minor source of complex Federal budget, and the Budget Act economic or financial instability, since the properly provides opportunity for waiver of amounts are small relative to total borrowing procedures and deadline requirements. But by the private sector. This is a faulty argument. unless the Congress undertakes its new respon­ To be sure, the rate of private credit expansion sibility with a firm determination to reserve the has substantially exceeded the rate of Federal waiver privilege for unusual circumstances, the borrowing. But we must never confuse the Budget Act may turn out to be a well-meaning power or responsibility of private citizens with but illusory gesture. the power or responsibility of government. Full implementation of the new budgetary Business firms and consumers have no way of procedures, I understand, will begin in fiscal acting in concert to prevent an inflationary ex­ 1977—or 2 years from now. We dare not wait pansion of credit, and their private respon­ 2 years, however, for the additional fiscal re­ sibilities may conflict with national objectives. straint that is so urgently needed in the present The basic responsibility for economic stabiliza­ inflationary environment. Strenuous efforts tion lies with the Federal Government. Unless should be made immediately to pare budget it exercises that function better than it has in expenditures in fiscal 1975 and to balance the the past, there will be little hope for restoration budget in fiscal 1976. of stability in the general price level. I recognize that this committee is not yet in The central purpose of the Congress, besides a good position to recommend to the Congress providing for the Nation’s security, is to help where expenditure cuts would be most appro­ find the way to a better life for the American priate. Nevertheless, in view of the special people—among other things, reasonably full responsibility that has been assigned to you by employment, a widely shared prosperity, and the leadership of the Senate, you can justly use a stable purchasing power of their currency. your good offices to press for restraint on Fed­ None of these objectives will be achieved over eral spending. This is the most important single any length of time without far stricter fiscal step that can now be taken by the Executive discipline than we have exercised in recent and the Congress to curb inflationary pressures years. That is why your committee, together and to restore the confidence of our people in with the Budget Committee of the House, has their own and the Nation’s economic future. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 Record of Policy Actions of the Federal O pen Market C om m ittee MEETING HELD ON JUNE 18, 1974 Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services would change little in the current quarter after declining at an annual rate of 6.3 per cent in the first quarter. There was some improvement in economic activity as the spring progressed. The second-quarter increase in the GNP implicit defla­ tor, while still large, was not expected to be quite so large as in the first quarter. Staff projections continued to suggest that real economic activity would expand somewhat in the second half of the year—although by less than had appeared likely 4 weeks earlier—and that prices would increase at a less rapid pace than in the first half. In May industrial production rose—for the second consecutive month—reflecting significant gains in output of business equipment and consumer goods. Employment in manufacturing changed little, but total employment in nonfarm establishments expanded substan­ tially further. The unemployment rate rose from 5.0 to 5.2 per cent, however, as the civilian labor force increased sharply after having changed little over the preceding 3 months. According to the advance report, the dollar volume of retail sales had expanded in May; although the May level was moderately above the firstquarter average, the gain appeared to be no greater than the increase in average retail prices. Wholesale prices of farm and food products declined substan­ tially in May for the third consecutive month. However, wholesale prices of industrial commodities continued upward at a rapid pace; as in earlier months of the year, large price increases were reported for most commodity groups. The index of average hourly earnings of production workers on nonfarm payrolls accelerated somewhat further in May, but the size of the advance was influenced by the initial effects of the increase in the minimum wage at the beginning of the month and by other special factors. In April the rise in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 657 the consumer price index had been less rapid than in the first 3 months of the year, as retail prices of foods, particularly meats, had declined. The latest staff projections for the second half of 1974 suggested that the rise in consumption expenditures would slow somewhat more from the first-half pace than had been anticipated 4 weeks earlier. The projected rise had been scaled down because of the recent continued sluggishness of retail sales and because it no longer seemed likely that the rate of growth in disposable income would be augmented by a downward adjustment of the withholding schedule for Federal income taxes. Less expansion in both business fixed investment and residential construction also was now in prospect. It was still expected that government purchases of goods and services would continue to grow at a fairly rapid rate. In foreign exchange markets the depreciation of the dollar against leading foreign currencies, which had been substantial over the preceding 3xh months, was arrested in mid-May. The dollar was buoyed first by a news report that the United States, Germany, and Switzerland were contemplating concerted intervention in the markets, and later by the release of figures indicating improvement in U.S. foreign trade in April. On the balance of payments basis, the trade deficit had narrowed substantially, despite a further large rise in the cost of petroleum imports; over all, the increase in imports had been small while the gain in exports had been large. In May U.S. international transactions were in approximate balance on the official settlements basis, after having been in substantial deficit in the preceding 2 months. The improvement appeared to reflect an abatement in net outflows of capital reported by banks. Growth in loans and investments at U.S. commercial banks moderated in May from the high rates earlier in the year, reflecting in large part a slowing in business loan growth. While over-all business credit demands remained relatively strong, expansion in short-term credit—measured by the combination of bank loans and of borrowing in the commercial paper market—receded from the extraordinary pace of the preceding month to about the rate of the first quarter. Moreover, prime corporate borrowers tended to shift to commercial paper issuance as interest rates on prime paper declined relative to the effective rate on bank loans. At the same time, issuers with nonprime ratings experienced some difficulty Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 in rolling over maturing commercial paper and, consequently, drew more heavily on their credit lines at banks. Growth in the narrowly defined money stock (M^1 moderated further in May, to an annual rate of about 5.2 per cent. Weekly data suggested that the rate of growth had increased somewhat in early June, however, and it appeared likely that growth over the second quarter would be close to the 7 per cent rate of the first quarter.2 Banks’ net inflows of time and savings deposits other than large-denomination CD’s slowed in May, after having picked up in April, and expansion in the more broadly defined money stock (M2)3 also slackened, to an annual rate of 5.5 per cent. In order to help finance loan growth, banks again issued a substantial amount of large-denomination CD’s and continued to increase their borrowings in the Euro-dollar market, with the result that expansion in the bank credit proxy4—although well below the unprecedented rate of April—was still relatively rapid. In late May and early June the increase in outstanding large-denomination CD’s and Euro­ dollar borrowings abated. Net deposit inflows at nonbank thrift institutions continued to be weak in May, as yields on market securities remained attractive to savers; growth in the measure of the money stock that includes such deposits (M3)5 slowed. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages rose further from early May to early June. System open market operations since the May 21 meeting had been guided by the Committee’s decision to maintain about the prevailing restrictive money market conditions, provided that the monetary aggregates appeared to be growing at rates within the specified ranges of tolerance, while taking account of developments in domestic and international financial markets. In the first 2 weeks 1Private demand deposits plus currency in circulation. 2Growth 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. 3MX plus commercial bank time and savings deposits other than large-denomi­ nation CD’s. 4Daily-average member bank deposits, adjusted to include funds from nondeposit sources. 5M2 plus time and savings deposits at mutual savings banks and at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 659 following the meeting, the maintenance of taut money market conditions, with the Federal funds rate averaging close to the upper limit of the 11 to IIV2 per cent range established by the Committee, served to counter incipient market anticipations of an easing in System policy and of declining interest rates. At the same time, it appeared that the monetary aggregates would grow in the May-June period at rates within their specified ranges. In the first 3 days of the statement week beginning June 6 the Federal funds rate averaged about 11.40 per cent. The System Account Manager advised that market psychology was delicately poised; expectations of declining interest rates had strengthened during the previous week, partly in conjunction with publicity concerning reductions in the prime rate by a number of banks. Although those expectations had been dampened by System opera­ tions, the Manager reported that it would be useful to have some additional leeway with respect to the funds rate if necessary to counteract a resurgence of such expectations. The members of the Committee concurred in the Chairman’s recommendation of June 10 that the upper limit of the funds rate constraint be raised to 11% per cent, on the understanding that the Manager would use the additional leeway if market interest rates came under downward pressure or if the monetary aggregates for the May-June period appeared to be testing the upper limits of their tolerance ranges. Subsequently, estimates of the 2-month growth rates for the mone­ tary aggregates were revised upward to the neighborhood of those upper limits, and in the remaining days before this meeting the funds rate fluctuated around 11% per cent. In the four statement weeks ending June 12, member bank borrowings averaged about $3,120 million, up from an average of about $1,925 million in the preceding 4 weeks. The magnitude of the increase was associated with the special problems experi­ enced by the Franklin National Bank. Short-term market interest rates fluctuated in a narrow range in the period between the Committee’s meeting on May 21 and this meeting, as money market conditions remained taut. Wide yield spreads between high- and lower-quality securities persisted as financial markets continued uneasy. Treasury bill rates remained unusually low relative to other short-term rates, reflecting not only the shift in investor preference toward securities of higher quality, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 but also the persistence of substantial purchases of bills by foreign monetary authorities and strong demands for such securities by small investors. On the day before this meeting the market rate on 3-month bills was 8.17 per cent, compared with 7.94 per cent on the day before the May meeting. Yields on long-term securities also fluctuated in a narrow range in the inter-meeting period. The volume of public offerings of corporate bonds—which had declined in April, in part because some scheduled offerings were postponed or canceled—rose sub­ stantially in May, and a further increase was in prospect for June. Offerings of State and local government issues declined moderately in May, and little change was in prospect for June. A staff analysis suggested that maintenance of prevailing money market conditions would be associated with some slowing in the rate of growth of the narrowly defined money stock over the months ahead, because the demand for money was likely to be restrained by the lagged effects of the rise in short-term market rates of interest that had occurred over the past few months. According to the analysis, growth in consumer-type time and savings deposits at both banks and nonbank thrift institutions would remain relatively slow. The Committee concluded that the economic situation continued to call for moderate growth in monetary aggregates over the months ahead. As at the May 21 meeting, the members decided that greater emphasis than usual should be placed on money market conditions during the period until the next meeting. In particular, they agreed that operations in the coming period should be directed toward maintaining about the prevailing restrictive money market condi­ tions, provided that the monetary aggregates appeared to be grow­ ing over the June-July period at rates within specified ranges of tolerance. Also, against the background of the substantial growth rates recorded earlier in the year, the members agreed that the lower limits of the tolerance ranges specified for the monetary aggregates should be set at levels that would accommodate slower growth rates than expected at present if such rates were to develop under prevailing money market conditions. Taking account of the staff analysis, the Committee 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 661 as low as 11% per cent to as high as 12% per cent, if necessary, in the course of operations. For the June-July period the Committee adopted ranges of tolerance of 3% to IV2 per cent and 5% to 8V2 per cent for the annual rates of growth in and M2, respectively. The members agreed that rates of growth within those ranges would be likely to involve growth in reserves available to support private nonbank deposits (RPD’s) during the same period at an annual rate within a 10 to 13% per cent range. The Committee also agreed that, in the conduct of operations, account should be taken of developments in domestic and interna­ tional financial markets. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant incon­ sistencies appeared to be developing among the Committee’s various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services will be about the same in the current quarter as a whole as in the first quarter, but that there has been some improvement as the spring has progressed. The over-all rate of price rise, while very large, is not quite so rapid as in the first quarter. In May industrial production increased somewhat for the second consecutive month, and nonfarm employment expanded substan­ tially further. The unemployment rate moved above 5 per cent, however, as the civilian labor force rose sharply. Wholesale prices of farm and food products declined substantially further, but in­ creases among industrial commodities again were widespread and extraordinarily large. The advance in wage rates accelerated some­ what further. In May the depreciation of the dollar against leading foreign currencies was arrested. U.S. international transactions were in approximate balance on the official settlements basis, as bankreported net outflows of capital apparently abated. The foreign trade deficit narrowed in April, despite a further large rise in the cost of petroleum imports. Growth in the narrowly defined money stock moderated in May, but apparently it accelerated in early June. Net inflows of con­ sumer-type time deposits at banks slowed in May, and deposit experience at nonbank thrift institutions continued poor. Business Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 credit demands remained large, although the expansion in short-term credit was below the extraordinary pace of April and was less concentrated at banks. In May banks increased their outstanding large-denomination CD’s substantially further and continued to borrow in the Euro-dollar market; most recently, however, they have reduced their reliance on these sources of funds. Market interest rates have fluctuated in a narrow range 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 achieving equilibrium in the country’s balance of payments. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to maintain about the prevailing restrictive money market conditions, provided that the monetary aggregates appear to be growing at rates within the specified ranges of tolerance. Votes for this action: Messrs. Burns, Black, Brimmer, Bucher, Holland, Kimbrel, Mitchell, Sheehan, Wallich, Winn, and Debs. Vote against this action: Mr. Clay. Absent and not voting: Mr. Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) Mr. Clay dissented from this action because he thought that for too long the Committee had accepted rates of growth in the monetary aggregates that would result in a continuing and growing inflation. He believed that the aggregates had not yet been brought under control and that the longer that situation persisted the more difficult it would be to achieve control and the greater would be the damage done to the economy by inflation. Subsequent to this meeting, in the statement week ending July 3, the Federal funds rate was consistently above 13 per cent and averaged about 13% per cent, despite System efforts to bring the rate down into the 11 lA to 12 lA per cent range of tolerance that had been specified by the Committee. On July 5 the Committee held a telephone meeting to discuss the situation and to consider whether any Committee actions would be appropriate. Mr. Coldwell and Mr. Debs participated as alternates for Mr. Kimbrel and Mr. Hayes, respectively. On the day of the telephone meeting, it appeared that in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 663 June-July period growth in Mt would be within its range of tolerance and that growth in M2 would be at about the upper limit of its range. The Manager reported that in order to bring the funds rate back within its range of tolerance he would have had to expand reserve-supplying operations substantially. In his view, the high funds rate was a reflection of ihe great uncertainty prevailing in both domestic and foreign financial markets, compounded by the effects of market transactions related to the midyear statement date for banks and by the July 4 holiday. The Committee concluded that there was no immediate need to press hard to bring the funds rate down within the specified range of tolerance, in view of the likelihood that the high level of the rate was primarily a conse­ quence of technical factors that might well prove temporary. Subsequent to the telephone meeting the volume of reserves provided was deemed sufficient to have reduced the Federal funds rate to about 12 per cent under normal circumstances. Member bank borrowing at the Reserve Banks was unexpectedly low, however, and the funds rate remained at an extremely high level; its average for the statement week ending July 10 was estimated at about l3Vi per cent. The Manager reported that it probably would be difficult to bring the weekly average rate down to the 12% per cent upper limit of the Committee’s range of tolerance without providing nonborrowed reserves on a very large scale. It appeared that in the June-July period the growth rates of both Mx and M2 would be somewhat below the upper limits of their ranges of tolerance. On July 10 Chairman Burns recommended that the Manager be instructed to act to reduce the funds rate, but not so aggressively as to risk unduly rapid growth in reserves and monetary aggregates. The Chairman recommended specifically that the Manager be instructed to undertake operations promptly with a view to reducing the average funds rate to 13 per cent, on the understanding that the funds rate would be permitted to decline to the neighborhood of 12 per cent should money market factors work in that direction. All of the members concurred in this recommendation except Messrs. Bucher and Sheehan, who favored decisive action to reduce the Federal funds rate to the neighborhood of 12% per cent, and Mr. Winn, who opposed overt action to lower the funds rate, although he would not resist a decline produced by market forces. * * * * * 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

664 Law Department Statutes, regulations, interpretations, and decisions SECURITIES OF STATE MEMBER BANKS MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM The Board of Governors has amended its Regu­ lation F regarding disclosure of standby letters of The Board of Governors has amended its Regu­ credit on financial statements of banks that are lation H regarding the issuance of standby letters subject to Regulation F. of credit and certain acceptances. AMENDMENT TO REGULATION F AMENDMENT TO REGULATION H Effective September 16, 1974, Section 206.7 is Effective September 16, 1974, Section 208.8 is amended to read as follows: amended to read as follows: SECTION 206.7—FORM AND CONTENT OF SECTION 208.8—BANKING PRACTICES FINANCIAL STATEMENTS (c) Effect on other banking practices. Noth­ (c) Provisions of general application*** ing in this section shall be construed as restricting (9) General notes to balance sheets*** in any manner the Board’s authority to deal with (viii) Standby letters of credit. State the amount any banking practice which is deemed to be unsafe of outstanding “standby letters of credit.” For the or unsound or otherwise not in accordance with purpose of this paragraph, “standby letters of law, rule, or regulation or which violates any credit” include every letter of credit (or similar condition imposed in writing by the Board in arrangement however named or designated) which connection with the granting of any application represents an obligation to the beneficiary on the or other request by a State member bank, or any part of the issuer (1) to repay money borrowed written agreement entered into by such bank with by or advanced to or for the account of the account the Board. Compliance with the provisions of this party or (2) to make payment on account of any section shall neither relieve a State member bank evidence of indebtedness undertaken by the ac­ of its duty to conduct all operations in a safe and count party, or (3) to make payment on account sound manner nor prevent the Board from taking of any default by the account party in the per­ whatever action it deems necessary and desirable formance of an obligation,2 except that, if prior to deal with general or specific acts or practices to or at the time of issuance of a standby letter which, although perhaps not violating the provi­ of credit, the issuing bank (1) is paid an amount sions of this section, are considered nevertheless equal to the bank’s maximum liability under the to be an unsafe or unsound banking practice. standby letter of credit, or (2) has set aside suffi­ (d) Letters of credit and acceptances cient funds in a segregated, clearly earmarked 1. Definitions deposit account to cover the bank’s maximum For the purpose of this paragraph, “standby liability under the standby letter of credit, then letters of credit” include every letter of credit (or the amount of that standby letter of credit need similar arrangement however named or desig­ not be stated. nated) which represents an obligation to the bene­ ficiary on the part of the issuer (1) to repay money 2As defined, “standby letter of credit” would not include borrowed by or advanced to or for the account (1) commercial letters of credit and similar instruments where the issuing bank expects the beneficiary to draw upon the issuer of the account party or (2) to make payment on and which do not “guaranty” payment of a money obligation account of any evidence of indebtedness under­ or (2) a guaranty or similar obligation issued by a foreign branch in accordance with and subject to the limitations of taken by the account party, or (3) to make payment Regulation M. on account of any default by the account party Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 665 in the performance of an obligation.6a An “ineli­ when issued, shall be adequately disclosed in the gible acceptance” is a time draft accepted by a bank’s published financial statements. bank, which does not meet the requirements for Each State member bank shall maintain ade­ discount with a Federal Reserve Bank. quate control and subsidiary records of its standby letters of credit comparable to the records main­ tained in connection with the bank’s direct loans 6aAs defined, “standby letter of credit” would not include so that at all times the bank’s potential liability (1) commercial letters of credit and similar instruments where thereunder and the bank’s compliance with this the issuing bank expects the beneficiary to draw upon the issuer and which do not “guaranty” payment of a money obligation section (d) may be readily determined. or (2) a guaranty or similar obligation issued by a foreign 4. Exceptions branch in accordance with and subject to the limitations of Regulation M. A standby letter of credit is not subject to the restrictions set forth above in the following situa­ tions: 2. Restrictions A. prior to or at the time of issuance of the A. A state member bank shall not issue, renew, credit, the issuing bank is paid an amount equal extend, or amend a standby letter of credit (or to the bank’s maximum liability under the standby other similar arrangement, however named or de­ letter of credit or scribed) or make an ineligible acceptance or grant B. prior to or at the time of issuance, the bank any other extension of credit if, in the aggregate, has set aside sufficient funds in a segregated, the amount of all standby letters of credit and clearly earmarked deposit account to cover the ineligible acceptances issued, renewed, extended, bank’s maximum liability under the standby letter or amended on or after the effective date of this of credit. amendment, when combined with other extensions of credit issued by the bank would exceed the legal limitations on loans imposed by the State (includ­ ing limitations to any one customer or on aggregate extensions of credit) or exceed legal limits per­ COLLECTION OF CHECKS AND OTHER ITEMS BY FEDERAL RESERVE BANKS taining to loans to affiliates under Federal law (12 U.S.C. 371(c)); provided that, if any State has The Board of Governors has amended its Regu­ a separate limitation on the issuance of letters of lation J to discontinue the Federal Reserve Par List credit or acceptances which apply to a standby and in its place issue a list of banks that charge letter of credit or to ineligible acceptances respec­ exchange fees on cash items presented for pay­ tively, then the separate limitation shall apply in ment. lieu of the standard loan limitation. B. No State member bank shall issue a standby A M EN D M EN T TO REG U LA TIO N J letter of credit or ineligible acceptance unless the Effective September 1, 1974, footnote 2 in credit standing of the account party under any Section 210.2 is amended to read as follows: letter of credit, and the customer of an ineligible acceptance, is the subject of credit analysis equiv­ alent to that applicable to a potential borrower in an ordinary loan situation. 2 The Board of Governors publishes from time to time a C. If several banks participate in the issuance “Memorandum on Exchange Charges” which indicates the of a standby letter of credit or ineligible acceptance banks that would make exchange charges on cash items for­ under a bona fide binding agreement which pro­ warded by Federal Reserve Banks and consequently would not be paying their checks at par. vides that, regardless of any event, each partici­ pant shall be liable only up to a certain percentage or certain amount of the total amount of the standby letter of credit or ineligible acceptance RULES REGARDING DELEGATION OF AUTHORITY issued, a State member bank need only include the amount of its participation for purposes of this The Board of Governors has amended its Rules section; otherwise, the entire amount of the letter Regarding Delegation of Authority to transfer to of credit or acceptance must be included. the Director of the Office of Saver and Consumer 3. Disclosure; recordkeeping Affairs certain functions previously delegated to The amount of all outstanding standby letters the Director of the Division of Supervision and of credit and ineligible acceptances, regardless of Regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 of the list of OTC margin stocks and to add, omit, A M EN D M EN TS TO RU LES REG A RD IN G or remove any stock in circumstances indicating D ELEG A TIO N O F A U TH O RITY that such change is necessary or appropriate in the public interest. Effective August 16, 1974, Section 265.2 is (2) Under the provisions of § 207.4(a)(2)(ii) of amended as follows: this chapter (Regulations G, T, U, and X) to 1. A new paragraph § 265.2(h) is added to read approve repayments of the “deficiency” with re­ as set forth below: spect to stock option or employee stock purchase plan credit in lower amounts and over longer SECTION 265.2—SPECIFIC FUNCTIONS periods of time than those specified in the regula­ DELEGATED TO BOARD EMPLOYEES AND tion. FEDERAL RESERVE BANKS. (3) Pursuant to the provisions of Part 261 of this chapter, to make available reports and other * * * * * information of the Board acquired pursuant to Parts 207, 220, 221, and 224 (Regulations G, T, (h) The Director of the Office of Saver and U and X) of the nature and in circumstances Consumer Affairs (or, in his absence, the Acting described in § 261.6(a)(2) and (3) of Part 261. Director) is authorized: 2. Sections 265.2(c)(13), 265.2(c)(18), and (1) Under the provisions of §§ 207.2(f), 265.2(c)(19) are repealed, and §§ 265.2(c)(14) 220.2(e), and 221.3(d) of this chapter (Regulations through 265.2(c)(17) are redesignated as §§ G, T, and U, respectively) to approve issuance 265.2(c)(13) through 265.2(c)(16). BANK HOLDING COM PANY AND BANK M ERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF views has been given. The time for filing comments BANK HOLDING COMPANY ACT and views has expired, and the Board has consid­ ered the applications and all comments received BRONSON AGENCY, INC., in light of the factors set forth in § 3(c) and § BRONSON, KANSAS 4(c)(8) of the Act. Order Approving Formation of Bank Applicant was recently organized by the present Holding Company and Retention of owners of Bank and conducts a general insurance Insurance Agency Activities business from the premises of Bank (deposits of $3.2 million dollars).1 Bank ranks second among Bronson Agency, Inc., Bronson, Kansas, has three commercial banks located in the relevant applied for the Board’s approval under § 3(a)(1) banking market with approximately 43% of the of the Bank Holding Company Act (12 U.S.C. deposits in commercial banks there.2 This proposal 1842(a)(1)) to become a bank holding company to acquire Bank merely represents a restructuring through acquisition of 80% or more of the voting of the ownership of Bank from individuals to a shares of The Bank of Bronson, Bronson, Kansas corporation with the same individuals as share­ (“Bank”). The factors that are considered in act­ holders. Since Applicant has no banking subsidi­ ing on the application are set forth in § 3(c) of aries, the acquisition of Bank by Applicant would the Act (12 U.S.C. 1842(c)). Applicant has also have no adverse effects on competition and the applied, pursuant to § 4(c)(8) of the Bank Holding Board concludes that competitive considerations Company Act (12 U.S.C. 1843(c)(8)) and § are consistent with approval of the application. 225.4(b)(2) of the Board’s Regulation Y, for per­ The financial and managerial resources and fu­ mission to continue its present general agency ture prospects of Applicant and Bank are satis­ business in a community not exceeding 5,000 factory and consistent with approval of the appli­ people. Such activity has been determined by the cation. Similarly, considerations relating to the Board in § 225.4(a)(9)(iii)(a) of Regulation Y as convenience and needs of the community to be permissible for bank holding companies subject to served are consistent with approval of the applica­ Board approval of individual proposals in accord­ ance with the procedures of § 225.4(b). *A11 banking data are as of December 31, 1973. Notice of the applications, affording opportunity 2 The relevant banking market is approximated by Bourbon for interested person to submit comments and and Allen Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 667 tion. It is the Board’s judgment that consummation By order of the Board of Governors, effective of the acquisition of Bank by Applicant would be August 26, 1974. in the public interest and that such application should be approved. Voting for this action: Vice Chairman Mitchell and Gover­ Concurrently with the application by Applicant nors Sheehan, Holland, and Wallich. Voting against this ac­ tion: Governor Brimmer. Absent and not voting: Chairman to acquire Bank, Applicant has filed a 4(c)(8) Burns and Governor Bucher. application to retain its present general insurance agency business pursuant to § 225.4(a)(9)(iii)(a) (Signed) Chester B. Feldberg, of Regulation Y. Bronson is a town with a popu­ [seal] Secretary of the Board lation not exceeding 5,000 persons and the opera­ tion of a general insurance agency in such a Dissenting Statement of community is an activity the Board has found to Governor Brimmer be closely related to banking. There is no evidence in the record that would indicate that Applicant’s I would deny the applications by Bronson retention of its general insurance agency business Agency, Inc., to acquire The Bank of Bronson and would result in an undue concentration of re­ to continue to engage in insurance agency activities. sources, decreased or unfair competition, conflicts My decision is based on the existence of covenants of interests, unsound banking practices or any not to compete granted Applicant by certain share­ other adverse effects on the public interest. On holders of The Bank of Bronson. These individ­ the contrary, approval of the retention application uals have agreed, for a period of 5 years $ not to would insure that a convenient source of insurance engage in either the banking or insurance agency services would remain available to consumers in businesses within 25 miles of Bronson. These the Bronson area, which result the Board regards covenants would prevent the shareholders from as being in the public interest. providing an alternative source of banking or in­ In its consideration of this application, the surance services; this adversely affects competi­ Board has considered certain covenants not to tion and, thus, the public interest. There is no evi­ compete given by shareholders of The Bank of dence in the record to indicate that the anti-com­ Bronson. The Board finds that the provisions of petitive effects of these covenants are offset by these covenants are reasonable in scope, duration any positive statutory factors bearing on the public and geographic area and do not constitute grounds interest. For reasons stated more fully in my dis­ for denying these applications. sents to the Board’s approvals of the application Based on the foregoing and other considerations of Orbanco, Inc., to acquire Far West Security reflected in the record, the Board has determined Company (59 Federal Reserve Bulletin 368that the balance of the public interest factors that 369 (1973), and the application of CBT Corpora­ the Board is required to consider under § 4(c)(8) tion to acquire General Discount Corporation (59 is favorable, and the application should be ap­ Federal Reserve Bulletin 471 (1973)), it is my proved. view such covenants should not receive the sanc­ Accordingly, the applications are approved for tion of the Board. I would deny these applications. the reasons summarized above. The acquisition of Bank shall not be made (a) before the 30th calen­ dar day following the effective date of this Order CENTRAL STATES BANCOR, INC., or (b) later than 3 months after the effective date DES MOINES, IOWA of this Order unless such period is extended for good cause by the Board or by the Federal Reserve Order Denying Formation of Bank Holding Bank of Kansas City pursuant to delegated au­ Company thority. The determination as to Applicant’s insur­ Central States Bancor, Inc., Des Moines, Iowa, ance activities is subject to the conditions set forth has applied for the Board’s approval under § in § 225.4(c) of Regulation Y and to the Board’s 3(a)(1) of the Bank Holding Company Act (12 authority to require such modification or termina­ U.S.C. 1842(a)(1)) of formation of a bank holding tion of the activities of the holding company or company through acquisition of 90.31 per cent of any of its subsidiaries as the Board finds necessary the voting shares of Capital City State Bank, Des to insure compliance with the provisions and pur­ Moines, Iowa (“Bank”). poses of the Act and to the Board’s regulations Notice of receipt of the application, affording and orders issued thereunder or to prevent evasion an opportunity for interested persons to submit thereof. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 comments and views, has been given in accord­ ability to remain a viable banking organization in ance with § 3(b) of the Act, and the time for filing meeting the banking needs of the community comments and views has expired. The Board has which it serves. Such considerations lend weight considered the application and all comments re­ toward denial of the application. ceived in the light of the factors set forth in § The Board notes that the principals of Applicant 3(c) of the Act (12 U.S.C. 1842(c)). are already principals in another bank holding Applicant, a nonoperating corporation with no company which controls a bank with a capital ratio subsidiaries, was organized for the purpose of which has been declining under the policy of its becoming a bank holding company through the present management. This precedent lends support acquisition of Bank. Bank ($51 million in depos­ to the view that the similar financial plan in the its) is the fifth largest of 23 banks in the Des instant case may not generate sufficient income Moines SMSA banking market and controls ap­ from the earnings of Bank to service its acquisition proximately 4.2 per cent of the total deposits held debt and to maintain Bank’s capital under a finan­ by commercial banks in the market.1 Upon acqui­ cially sound program. sition of Bank, Applicant would control 0.5 per With respect to questions of acquisition debt and cent of total commercial bank deposits in the State. debt-equity ratios, the Board has been relatively Since the purpose of the proposed transaction is liberal in the standards it has applied in cases essentially a reorganization to effect a transfer of where a current or prospective owner-chief execu­ the ownership of Bank from individuals to a cor­ tive is establishing, or has established, a one-bank poration owned by the same individuals, consum­ holding company to hold the direct equity interest mation of the proposal would not eliminate any in his bank. Such relative liberality is regarded existing competition, nor would it appear to have as in the public interest in order to facilitate any adverse effects on other banks or on the management succession on the community level development of competition in the relevant mar­ at the Nation’s many smaller independent banks. ket. Therefore, competitive considerations are However, in situations such as the instant proposal consistent with approval of the application. where this special consideration does not pertain, Under the Bank Holding Company Act, the the Board believes it is prudent to apply somewhat Board is required to take into consideration the more restrictive standards, as is regularly done in financial and managerial resources and future analyzing multibank holding companies. prospects of the proposed holding company and Under the above circumstances, in addition to the bank to be acquired. In the exercise of that other facts of record, considerations relating to the responsibility, the Board finds that considerations financial condition and prospects of Applicant lend relating to the financial resources of Applicant weight for denial of the application. While the warrant denial of the application. Applicant’s Board recognizes that denial of the application earnings prospects are entirely dependent upon the would not necessarily affect immediately the con­ earnings of Bank; Applicant expects to service a trol of Bank, the Board cannot sanction the use $4.5 million debt over a 12-year period through of a holding company structure that, because of Bank dividends of 60 per cent of Bank’s projected limited financial resources, could impair the fi­ annual income. The projected earnings for Bank nancial condition of the bank to be acquired, nor do not, in the Board’s view, provide Applicant would the public interest be served by such Board with the necessary financial flexibility to meet its action. annual debt servicing requirements as well as any Consummation of the transaction would have unexpected problems that might arise at Bank. no immediate effect on area banking needs. Ap­ Furthermore, if Bank’s rate of growth is consistent plicant has proposed some changes which could with the average annual growth rate for banks in ultimately benefit the community, but at the same Iowa, total capital funds as related to its total assets time Applicant has also indicated that certain other would become insufficient because of Applicant’s banking services will be curtailed in order to help inability to augment Bank’s capital due to its alleviate Applicant’s debt servicing problem. substantial debt servicing requirements. The above Thus, considerations relating to the convenience factors strongly suggest that these financial re­ and needs of the community to be served lend no quirements could place an undue strain on the weight toward approval of the application. financial condition of Bank and thus impair Bank’s On the basis of all the facts in the record, and in light of the factors set forth in § 3(c) of the Act, it is the Board’s judgment that the proposed banking data are as of December 31, 1973. acquisition would result in a bank holding com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 669 pany with financial resources inadequate to service in deposits), Birmingham Bank ($65.4 million in its debt while maintaining Bank’s capital account deposits), and Fairhope Bank ($25.8 million in and that such condition could impair the ability deposits).1 Upon consummation of the proposed of Bank to meet the needs of the community which transaction, Applicant would become the fifth it serves. Accordingly, the Board concludes that largest bank holding company in Alabama and consummation of the proposal would not be in the would control 5 per cent of the total commercial public interest and that the application should be bank deposits in the State. Board approval of the denied. instant proposal would not result in a significant By order of the Board of Governors, effective increase in the concentration of banking resources August 22, 1974. in Alabama. Mobile Bank is the second largest banking or­ Voting for this action: Vice Chairman Mitchell and Gover­ ganization competing in the Mobile Ranally Metro nors Sheehan, Bucher, Holland, and Wallich. Absent and not Area (Mobile RMA),2 the relevant banking mar­ voting: Chairman Burns and Governor Brimmer. ket,3 where it controls 38.2 per cent of the total (Signed) Chester B. Feldberg, commercial bank deposits in that market. The [seal] Secretary of the Board. largest bank in the market, First National Bank of Mobile, is only slightly larger in size as it holds $269 million in deposits, representing 38.6 per SOUTHLAND BANCORPORATION, cent of the market’s total commercial deposits. MOBILE, ALABAMA However, in terms of IPC demand deposits under Order Denying Formation of Bank Holding $100,000, Mobile Bank ranks as the largest bank Company in the market, holding 43 per cent of all such deposits, while the First National Bank of Mobile Southland Bancorporation, Mobile, Alabama, is the market’s second largest bank, holding ap­ has applied for the Board’s approval under § proximately 34 per cent of such deposits.4 The 3(a)(1) of the Bank Holding Company Act (12 market appears somewhat concentrated, with the U.S.C. 1842(a)( 1)) of formation of a bank holding top 3 banking organizations controlling 4 banks company through acquisition of 100 per cent of and holding approximately 90 per cent of both the the voting shares (less directors’ qualifying shares) market’s total commercial deposits and those IPC of the successors by merger to The Merchants demand deposits in accounts under $100,000. National Bank of Mobile, Mobile, Alabama Birmingham Bank is the fifth largest of 12 (“Mobile Bank”), City National Bank of Bir­ banking organizations competing in the Jefferson mingham, Birmingham, Alabama (“Birmingham County banking market where it controls 3.5 per Bank”), and First National Bank of Fairhope, cent of the total commercial bank deposits in that Fairhope, Alabama (“Fairhope Bank”). The market. The Jefferson County banking market is banks into which Mobile Bank, Birmingham approximately 200 miles distant from the Mobile Bank, and Fairhope Bank are to be merged have no significance except as a means to facilitate the acquisition of all of the voting shares of the re­ spective Banks. Accordingly, the proposed acqui­ ’All banking data are as of June 30, 1973, and reflect bank holding company formations and acquisitions approved through sition of shares of the successor organizations is May 1, 1974. treated herein as the proposed acquisition of shares 2 The Mobile Ranally Metro Area includes portions of Mobile and Baldwin Counties. of Mobile Bank, Birmingham Bank, and Fairhope :5 Prior Board decisions have defined -this market as being Bank. approximated by the Mobile SMSA, composed of Mobile and Notice of the application, affording opportunity Baldwin Counties. See, e.g., Order approving application of The Alabama Financial Group, Inc., to acquire Baldwin for interested persons to submit comments and County Bank, Bay Minette, Alabama, dated June 26, 1973; views, has been given in accordance with § 3(b) and Order approving application of Alabama Bancorporation of the Act. The time for filing comments and views to acquire the successor by merger to Baldwin National Bank of Robertsdale, Robertsdale, Alabama. While the Board has has expired, and the Board has considered the redefined the market in this case to the somewhat narrower application and all comments received in light of Mobile RMA, it should be noted that under either market definition, concentration levels are essentially the same and the factors set forth in § 3(c) of the Act (12 U.S.C. that the Board’s determination herein would not differ under 1842(c)). either criteria. Essentially, the Board regards the boundary Applicant was recently organized for the pur­ portrayed by the Mobile RMA as a more accurate reflection of commuter traffic patterns and the area within which actual pose of becoming a bank holding company through competition in this banking market occurs. the acquisition of Mobile Bank ($267.7 million 4IPC deposit data as of June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 banking market, in which both Mobile Bank and ket. The Board recognizes certain advantages that Fairhope Bank are located, and it does not appear the formation of an additional bank holding com­ that Birmingham Bank derives any significant pany would bring to Alabama and, under more amount of loans or deposits from this banking favorable circumstances, would encourage such a market. Nor does Fairhope Bank derive any sig­ formation. However, under the present proposal, nificant amount of loans or deposits from the it is the Board’s judgment that preserving the Jefferson County banking market. Inasmuch as possibility of deconcentration of the area’s com­ Mobile Bank derives a relatively insignificant mercial bank deposits would be in the public amount of its deposits and loans from the Jefferson interest by offering the promise of more vigorous County banking market, consummation of the in­ competition developing in the future within the stant proposal would eliminate no significant ex­ Mobile banking market. isting competition between Birmingham Bank and On the basis of the foregoing and all other facts either of the proposed subsidiaries in the Mobile in the record, the Board concludes that consum­ banking market. Moreover, the distance separating mation of Applicant’s proposal would have sub­ the two markets and Alabama’s restrictive branch­ stantially adverse effects on competition, and ing laws effectively preclude the possibility of unless such anticompetitive effects are clearly out­ future competition developing between either Mo­ weighed in the public interest by the probable bile Bank or Fairhope Bank. effect of the transaction in meeting the conven­ Fairhope Bank is the fifth largest of seven ience and needs of the communities to be served, banking organizations competing in the Mobile the application should be denied. RMA where it controls 3.4 per cent of the total The financial condition, managerial resources commercial deposits and 4 per cent of all IPC and future prospects of Applicant and its proposed demand deposits in accounts under $100,000 in subsidiary banks appear satisfactory. Thus, con­ that market. As noted above, Mobile Bank also siderations relating to banking factors are consist­ competes in this banking market. Although the ent with approval but provide no significant sup­ main offices of the two banks are 16 miles apart port for such action. and located in separate Counties, it appears from Applicant proposes to offer new or expanded the record that 30 per cent of Fairhope’s employed services, including international, data processing persons commute to Mobile. Moreover, it is an­ and trust services. In addition, equipment leasing ticipated that Mobile and Baldwin Counties, in and large commercial and industrial lending would which the respective banks are located, will be­ be offered. While these improved services lend come even more integrated in the future. Mobile some weight toward approval, the Board does not Bank derives approximately 4 per cent of its total consider these convenience and needs consid­ loans and 2 per cent of its total deposits from the erations sufficient to outweigh the anticompetitive primary service area of Fairhope Bank, while effects of the proposal. Accordingly, it is the Fairhope Bank derives 5.5 per cent of its total Board’s judgment that, on the basis of the entire loans and 2.3 per cent of its total deposits from record, consummation of the proposed transaction the primary service area of Mobile Bank. Thus, would not be in the public interest and that the consummation of the instant proposal would not application should be, and hereby is, denied. only eliminate existing competition between the By order of the Board of Governors, effective two institutions, but would result in the formation July 15, 1974. of the market’s largest banking organization, con­ Voting for this action: Governors Brimmer, Sheehan, trolling over 41 per cent of the total commercial Bucher, and Wallich. Abstaining: Governor Holland. Absent and not voting: Chairman Burns and Governor Mitchell. deposits and 47 per cent of all IPC demand depos­ its in accounts under $100,000. In addition, the (Signed) Chester B. Feldberg, present level of deposit concentration among the [seal] Secretary of the Board. market’s top three banking organizations would increase to approximately 94 per cent and the MERCANTILE BANCORPORATION, INC., likelihood of eventual deconcentration within the ST. LOUIS, MISSOURI Mobile RMA would be further diminished. In the Order Approving Acquisition of Bank circumstances of this case, the Board is uncon­ vinced that Applicant’s formation as a bank hold­ Mercantile Bancorporation, Inc., St. Louis, ing company must take the form of acquiring Missouri, a bank holding company within the competing institutions in a relevant banking mar­ meaning of the Bank Holding Company Act, has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 671 applied for the Board’s approval under § 3(a)(3) fied and supplemented herein, should be adopted of the Act (12 U.S.C. 1842(a)(3)) to acquire 90 as the findings, conclusions, and order of the per cent or more of the voting shares of Lewis Board, now makes its findings as to the facts, its & Clark State Bank of St. Louis County, St. Louis conclusions drawn therefrom, and its order. County, Missouri (“Bank”). Applicant is the largest banking organization Notice of receipt of the application, affording and bank holding company in Missouri, where it opportunity for interested persons to submit com­ controls ten banks holding aggregate deposits of ments and views with respect to the proposed $1.3 billion, representing 9.5 per cent of the total transaction, was published in the Federal Register commercial bank deposits in the State.2 Acquisi­ (38 F.R. 26507). As required by § 3(b) of the tion of Bank, with deposits of $11.2 million (as Act, the Board gave written notice of receipt of of December 31, 1972), would increase Appli­ the application to the Commissioner of Finance cant’s share of the State’s total commercial bank of the State of Missouri and requested his views deposits to approximately 9.6 per cent. Applicant and recommendations thereon. Within 30 days of owns, either directly or indirectly, a number of his receipt of that notice, the Commissioner sub­ nonbanking subsidiaries, including Mercantile mitted in writing a statement expressing disap­ Mortgage Company, a mortgage banking firm that proval of the application. Accordingly, as required makes mortgage loans in the St. Louis area. by § 3(b) of the Act, the Board by order issued Applicant presently controls four banks in the October 17, 1973, directed that a public hearing St. Louis area, one of which, Mercantile National be held commencing on November 8, 1973, at Bank of St. Louis County, had not opened for the Federal Reserve Bank of St. Louis, before the business at the time of the instant hearing. Appli­ Honorable Louis W. Sornson, Administrative Law cant’s lead bank, Mercantile Trust Company, Judge. Notice of the hearing was published in the N.A. (Mercantile Trust), and Mercantile-Com- Federal Register (38 F.R. 201) and all persons merce Trust Company (Mercantile-Commerce), desiring to give testimony, present evidence, or are each located in the city of St. Louis, while otherwise participate in the hearing held in St. the third banking subsidiary, County Bank of St. Louis, Missouri, on November 8 and 9, 1973, Charles, is located in St. Charles, approximately were afforded an opportunity to do so. The hearing fourteen miles west from Bank.3 Applicant’s three and related proceedings have been conducted in banking subsidiaries hold aggregate deposits of accordance with the Board’s Rules of Practice for $1.1 billion, representing 17.0 per cent of the total Formal Hearings (12 CFR 263).1 commercial bank deposits in the St. Louis banking In a Recommended Decision of March 29, market.4 However, in an area confined solely to 1974, the Administrative Law Judge concluded St. Louis City and St. Louis County, Applicant’s that the evidence supported approval of the appli­ market share is 18.4 per cent, while in the area cation and found that the proposed acquisition of encompassed by the entire St. Louis SMSA, Ap­ 90 per cent or more of the voting shares of Bank plicant’s share of the market approximates 14.4 was consistent with the public interest. Accord­ per cent. However determined, Applicant’s market ingly, he recommended that the application be share does not appear to represent that of a domi­ approved by the Board of Governors of the Federal nant organization. The market’s second largest Reserve System. banking organization, First Union Incorporated, The Board, having considered the entire record holds aggregate deposits of $879.6 million, repre­ of the hearing, including the transcript, exhibits, senting 13.5 per cent of the total commercial rulings, all briefs, and memoranda filed in con­ deposits in the St. Louis banking market. Morenection with the hearing, and the Recommended Decision, findings of fact, and conclusions of law 2 Banking data are as of December 31, 1972. :i Board Exhibit 1, p. 31. filed by the Administrative Law Judge, together In this Statement, the following abbreviations will be used with the exceptions taken thereto, and having for citations: R.D.—Recommended Decision of the Administrative Law determined that the Administrative Law Judge’s Judge (ALJ) findings of fact, conclusions, and order, as modi- Tr.—Transcript of Testimony AX—Applicant’s Exhibits BX—Board Exhibits 1 Board counsel’s participation in the hearing was confined CX—Commissioner of Finance Exhibits to “representing] the Board in a nonadversary capacity for 4 The St. Louis banking market is approximated by St. Louis the purpose of developing for the record information relevant City, St. Louis County, portions of St. Charles and Jefferson to the issues to be determined by the presiding officer and Counties, Missouri, and portions of St. Clair and Madison the Board.” (12 CFR 263.6(d)) Counties, Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 over, the market is relatively unconcentrated, with a genuine economic significance in terms of a the top five banking organizations holding aggre­ relevant banking market for this case, is closely gate deposits that represent but 46.7 per cent of approximated by St. Louis City, St. Louis County, the market’s total commercial bank deposits. portions of St. Charles and Jefferson Counties, Bank is located in an unincorporated area north Missouri, and portions of St. Clair and Madison of 1-270 in northern St. Louis County, near the Counties, Illinois. Thus, consummation of the communities of Florissant, Ferguson, and Black proposed acquisition of Bank, located in the St. Jack. Bank was organized by a group of area Louis banking market as delineated herein, would investors who filed an application for a State bank increase Applicant’s share of the market’s total charter in October, 1968. After examination by deposits by only 0.2 per cent to 17.2 per cent and the office of the Commissioner of Finance com­ would eliminate but a slight amount of existing mencing in February, 1970, a charter was granted competition. Accordingly, the Board finds that no by the Commissioner in May, 1970. Upon con­ significant adverse effects on present competition struction of a building, Bank commenced opera­ would result from consummation of the proposal. tions on June 1, 1971. It has enjoyed substantial Applicant does not presently control any bank growth, as its statement of condition reflects an in the northern St. Louis County portion of the increase in total deposits from $4.7 million (as St. Louis banking market. Missouri’s restrictive of December 31, 1971) to $12.9 million (as of branching laws prevent Applicant from establish­ June 30, 1973). However, Bank remains the ing a branch in this area, and the only alternative smallest of seven banks operating in the north St. to the proposed acquisition of a small bank (such Louis County area, holding but 4.8 per cent of as Lewis & Clark State Bank of St. Louis County) the aggregate deposits of these area banks. would be entry de novo. The projected population The principal competitive issue posed at the growth of northern St. Louis County might appear hearing centered upon the delineation of the rele­ to make such entry attractive. However, due to vant geographic area, or “section of the county” the recent chartering of three banks in the area, within which the competitive effects of Applicant’s the Commisioner testified that he did not believe proposal should be measured. The Commissioner the area could support a new bank “at the present contends that the service area of Bank is the time” (Tr. 238), but that there was a “good relevant geographic area to be considered in this possibility” a charter application by Applicant proceeding. However, there is no evidence of might be favorably considered “at some point in record to indicate that Bank’s service area is an the future” (Tr. 186). In light of the Commis­ insulated and separate banking market. To the sioner’s testimony, and other facts of record, it contrary, each of the banks in the north St. Louis appears that the probability of Applicant’s de novo County area appear to be responsive to changes entry into the northern St. Louis County portion in price or services offered by banks located in of the market is remote within the reasonably downtown St. Louis; and while 4.2 per cent of foreseeable future. Additionally, as noted by the the employed persons who commute from the ALJ, an analysis of certain area zip codes in this service area of Bank are commuting to the central portion of the market indicates that the relative business district of the city of St. Louis, more than share of deposits held therein by Applicant’s 42.0 per cent commute to locations within the city banking subsidiaries declined between the period of St. Louis itself.5 Thus, there are numerous 1969-1972. It therefore appears, from all the facts commercial banks located in the area to which of record, that consummation of the proposal Bank’s customers may, and do, turn for a conven­ would not foreclose significant potential competi­ ient and practical alternative source in their pur­ tion. chase of commercial bank services. After giving The Board concludes that consummation of the due consideration to the contentions of the Com­ proposed transaction would not result in a monop­ missioner, and after close examination of the entire oly, nor be in furtherance of any combination, record in this case, the Board concludes that the conspiracy, or attempt to monopolize the business service area of Bank is not the relevant market of banking in any part of the United States, and for examining the competitive effects of the would not restrain trade, substantially lessen com­ proposed acquisition. In the Board’s view, the area petition, nor tend to create a monopoly in any within which Bank competes, and one which has section of the country. An additional ground upon which the Commis­ 5 BX 23, p. 13. sioner based his opposition to the proposed trans- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 673 action was a concern that organizers of Bank had will augment rather than dilute Applicant’s finan­ sought a charter with the intention of realizing a cial fitness and strength,” and the Board expressly profit through the early sale of Bank to a holding affirms said finding in concluding that banking company (Tr. 196-7). This is a legitimate concern factors are consistent with approval of the appli­ and one that the Board has on previous occasions cation. shared. (See, e.g., Order denying application of With respect to considerations relating to con­ United Missouri Bancshares, Inc., to acquire Bank venience and needs, it appears that Bank is in need of Jacomo, 1972 F.R. Bulletin 155). However, of additional capital to improve and enlarge its in the instant case, it appears that the first discus­ main banking building and to construct and staff sion officials of Applicant held with Bank con­ two facilities permitted under State law, as well cerning a possible purchase took place in the fall as to support its growth. Applicant is committed of 1972,6 approximately four years from the time to inject a minimum of $500,000 for these pur­ Bank’s organizers applied for a charter. Moreover, poses. In addition, affiliation with Applicant would as the principal organizer of Bank testified, Bank’s permit Bank to better meet its loan demands and charter was sought for the purpose of a long-term provide its customers with a wider range of bank­ investment, and no evidence was proffered during ing services. These considerations are consistent the course of the hearing that would contradict with, and lend some weight toward, approval of such intent. Thus, the circumstances surrounding the application. the present application are clearly distinguishable On the basis of all relevant facts contained in from those before the Board in Jacomo,7 cited the record, and in light of the factors set forth supra, and the evidence of record confirms, in the in § 3(c) of the Act, it is the Board’s judgment Board’s view, the finding of the ALJ that “it was that the proposed transaction would be in the not the intention of the organizers of Bank to profit public interest and that the application should be through an early sale of their stock to Applicant approved. or another banking organization” (RD, p. 25). On the basis of the reocrd, the application is The financial condition, management, and pros­ approved for the reasons summarized above. The pects of Applicant and its present subsidiaries are transaction shall not be made (a) before the thir­ regarded as satisfactory. It also appears that Bank tieth calendar day following the effective date of is a viable banking organization and that its present this Order or (b) later than three months after the management is competent. In view of a total effective date of this Order unless such period is purchase price of $3 million contracted for Bank’s extended for good cause by the Board or by the shares, the Commissioner expressed some concern Federal Reserve Bank of St. Louis pursuant to that an excessive premium was being offered inas­ delegated authority. much as the purchase price is equal to about 14.8 By order of the Board of Governors, effective per cent of Bank’s deposits. While the premium July 26, 1974. appears somewhat higher than that generally of­ Voting for this action: Chairman Burns and Governors fered for banks of this deposit size, a cash purchase Brimmer, Sheehan, Bucher, Holland, and Wallich. Absent and analysis submitted by Applicant projects, on the not voting: Governor Mitchell. basis of an assumed 5 per cent earnings growth (Signed) Chester B. Feldberg, rate, an after-tax return of 5.35 per cent on its [seal] Secretary of the Board. investment in the seventh year. From the facts of record, it appears that this projection is attainable ORDERS UNDER SECTION 4(c)(8) OF by Applicant and represents a modest projection BANK HOLDING COMPANY ACT of Bank’s future earnings.8 Nor does it appear that the purchase price will have any adverse effect GALBANK, INC., AND UNITED STATES on the financial condition of Applicant. The ALJ NATIONAL BANCSHARES, INC., concluded that “Applicant’s investment in Bank GALVESTON, TEXAS Tr. 46-7,80-1. Order Approving Acquisition of 7 Bank of Jacomo’s charter application was filed on De­ cember 19, 1969. Following grant of the charter on March Bankers Data Services, Inc. 18, 1970, Bank opened for business on May 22, 1970. On June 30, 1971, organizers entered into a contract for the sale Galbank, Inc., and its subsidiary, United States of Bank of Jacomo (AX2). National Bancshares, Inc., both of Galveston, 8An assumed 15 per cent growth in Bank’s assets would Texas, (hereinafter jointly referred to as “Appli­ produce a return of 7.12 per cent on Applicant’s investment as a 10-year average (AX 4). cant”), are bank holding companies within the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 meaning of the Bank Holding Company Act and adverse effects on existing or potential competition have each applied for the Board’s approval under in any relevant area. § 4(c)(8) of the Act and § 225.4(b)(2) of the It is anticipated that affiliation with Applicant Board’s Regulation Y, to acquire voting shares of will increase the resources available to BDS, and Bankers Data Services, Inc., Houston, Texas enhance the latter’s effectiveness and enable it to (“BDS”), a company that engages in the activity expand the range of services it offers. There is of providing data processing services to banks and no evidence in the record indicating that consum­ other financial services organizations and computer mation of the proposed transaction would result programming incident to the use of such data in any undue concentration of resources, unfair processing services. Such activity has been deter­ competition, conflicts of interests, unsound bank­ mined by the Board to be closely related to bank­ ing practices, or other adverse effects on the public ing (12 CFR 225.4(a)(8)). interest. Notice of the application, affording opportunity In its consideration of these applications, the for interested persons to submit comments and Board has examined covenants not to compete views on the public interest factors, has been duly which were executed in connection with the published (39 Federal Register 20103). The time proposed acquisition. The Board finds that the for filing comments and views has expired, and provisions of these covenants are reasonable in the applications and all comments and views re­ duration, scope and geographic area and are con­ ceived have been considered in light of the public sistent with the public interest. interest factors in § 4(c)(8) of the Act (12 U.S.C. Based upon the foregoing and other consid­ 1843(c)(8)). erations reflected in the record, the Board has Applicant, the nineteenth largest banking orga­ determined, in accordance with the provisions of nization in Texas, controls 2 banks with aggregate § 4(c)(8), that consummation of this proposal can deposits of $83 million, representing less than 1 reasonably be expected to produce benefits to the per cent of the total deposits in commercial banks public that outweigh possible adverse effects. Ac­ in the State.1 cordingly, the applications are hereby approved. BDS performs data processing, accounting and This determination is subject to the conditions set related services principally for banks, and provides forth in Section 225.4(c) of Regulation Y and to some of these services to other business enter­ the Board’s authority to require such modifications prises. BDS operates out of two offices, one in or termination of the activities of a holding com­ Houston, and one in Clute, Texas (about 30 miles pany or any of its subsidiaries as the Board finds south of Houston), and has total assets of $615,500 necessary to assure compliance with the provisions (as of October 31, 1973) and realized a gross and purposes of the Act and the Board’s regula­ income of $1 million in fiscal year 1973. Within tions and orders issued thereunder, or to prevent the relevant market, which is approximated by the evasions thereof. Houston SMSA, BDS competes with over 200 The transactions shall not be made later than organizations offering similar services including three months after the effective date of this Order, banks with internal computer facilities, bank co­ unless such period is extended for good cause by operatives and commercial firms providing such the Board or by the Federal Reserve Bank of services. Applicant does not engage in such activ­ Dallas. ity. It is the Board’s opinion, on the basis of the By order of the Board of Governors, effective above and other facts of record, that the proposed August 2, 1974. acquisition would not have an adverse effect on Voting for this action: Chairman Burns and Governors existing competition. Furthermore, it does not Bucher, Holland, and Wallich. Voting against this action: appear that acquisition of BDS would foreclose Governor Brimmer. Absent and not voting: Governors Mitchell the development of significant potential competi­ and Sheehan. tion in the Houston market in view of the size (Signed) Chester B. Feldberg, of BDS, the numerous other potential entrants, and [seal] Secretary of the Board. the large number of competitors in the market. The Board concludes that consummation of the Dissenting Statement of proposed acquisition would have no significant Governor Brimmer I would deny the applications of Galbank and ’All banking data are as of June 30, 1973, and reflect bank United States National Bancshares to acquire holding company formations and acquisitions approved through June 30, 1974. Bankers Data Services, Inc. (BDS). My decision Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 675 is based on covenants not to compete which were have been considered in light of the public interest entered into between Applicants and the principal factors in section 4(c)(8) of the Act (12 U.S.C. executives of BDS as an incident to this proposal. 1843(c)(8)). The effect of these covenants is to prevent these Applicant, the largest banking organization in executives of BDS from providing their expertise Virginia, controls 16 banks with aggregate depos­ in the data processing business to competitors of its of $1.7 billion, representing about 14 per cent BDS in any geographic area in which BDS now of the total deposits in commercial banks in the has an office or has an office at the time when State.1 Applicant also controls a number of non­ the executives terminate their employment with banking subsidiaries that engage in mortgage BDS, for a period of two to four years from the banking, factoring, leasing, insurance and invest­ date of termination of their employment with BDS. ment advisory activities. Such agreements are inherently anticompetitive BMC proposes to provide management consult­ and I believe there is no evidence in the record ing advice to nonaffiliated banks located in the which demonstrates that the adverse effects of such mid-Atlantic States. BMC would provide to client covenants are outweighed by reasonably expected banks, on an explicit fee basis, management con­ benefits to the public. For reasons stated more fully sulting advice concerning bank operations, plan­ in my dissents to the application of Orbanco, Inc., ning, market research, and financial assistance. to acquire Far West Security Company (59 Bul­ It would appear that no adverse effects on com­ letin 368-369 (1973)), and the application of petition would result from BMC offering bank CBT Corporation to acquire General Discount management consulting advice. While such man­ Corporation (59 Bulletin 471 (1973)), it is my agement consulting advice is currently available view that such covenants are not in the public to banks as a correspondent banking service, Ap­ interest and should not receive the sanction of the plicant’s banking subsidiaries offer only limited Board. I would deny this application. correspondent services in this area. Further, such services are not presently available from corre­ spondent banks on an explicit fee basis. In addi­ tion, general management consulting firms in this UNITED VIRGINIA BANKSHARES area offer management consulting advice and ser­ INCORPORATED, vices to a full range of industries. The Board RICHMOND, VIRGINIA concludes, therefore, that no significant existing or potential competition would be eliminated upon Order Approving Acquisition of approval of this application. Bank M anagement Consultants, Inc. There is no evidence in the record indicating that consummation of the proposed transaction United Virginia Bankshares Incorporated, would result in any undue concentration of re­ Richmond, Virginia, a bank holding company sources, unfair competition, conflicts of interests, within the meaning of the Bank Holding Company unsound banking practices, or other adverse ef­ Act, has applied for the Board’s approval, under fects on the public interest. It is expected that section 4(c)(8) of the Act and § 225.4(b)(2) of Applicant’s de novo entry into this industry should the Board’s Regulation Y, to acquire all of the have a procompetitive effect by increasing the voting shares of Bank Management Consultants, number of firms offering this specialized consult­ Inc., Richmond, Virginia (“BMC”), a proposed ing advice. Further, by making this advice avail­ new company that would engage in the activities able on an explicit fee basis rather than as a of furnishing management consulting advice on a correspondent banking service, client banks will fee basis to nonaffiliated banks with respect to bank now be able to more accurately analyze the cost operations, planning, market research, and finan­ of such services and may be able to more effi­ cial analysis. Such activity has been determined ciently allocate their funds. by the Board to be closely related to banking (12 Based upon the foregoing and other consid­ CFR 225.4(a)(12)). erations reflected in the record, the Board has Notice of the application, affording opportunity determined in accordance with the provisions of for interested persons to submit comments and views on the public interest factors, has been duly published (39 Federal Register 20434). The time ’AN banking data are as of December 31, 1973, and reflect for filing comments and views has expired. The bank holding company formations and acquisitions approved application and all comments and views received through June 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 § 4(c)(8), that consummation of this proposal can holding companies must obtain prior Board ap­ reasonably be expected to produce benefits to the proval before acquiring direct or indirect owner­ public that outweigh possible adverse effects. Ac­ ship or control of more than 5 per cent of the cordingly, the application is hereby approved. This voting shares of any additional bank. In amending determination is subject to the conditions set forth the Act in 1970, Congress recognized that a bank in section 225.4(c) of Regulation Y and to the holding company did not have to hold 25 per cent Board’s authority to require such modification or or more of a bank’s shares to control a bank and, termination of the activities of a holding company in order to provide the Board broader powers to or any of its subsidiaries as the Board finds neces­ carry out the purpose of the Act, Congress added sary to assure compliance with the provisions and a provision which included within the definition purposes of the Act and the Board’s regulations of a bank holding company a company that directly and orders issued thereunder, or to prevent evasion or indirectly exercises a “controlling influence” thereof. over the management or policies of a bank. To The transaction shall be made not later than carry out this new provision of the Act the Board three months after the effective date of this Order, adopted regulations which set forth circumstances unless such period is extended for good cause by under which a bank holding company would be the Board or by the Federal Reserve Bank of presumed to control or exert a controlling influ­ Richmond. ence over a bank. One of these regulations basi­ By order of the Board of Governors, effective cally provides that an agreement or understanding August 6, 1974. between a bank and a company, such as a man­ agement contract, through which the company Voting for this action: Chairman Burns and Governors directly or indirectly exercises significant influence Sheehan, Holland, and Wallich. Voting against this action: Governor Brimmer. Absent and not voting: Governors Mitchell over the Bank, raises a presumption that the com­ and Bucher. pany controls the Bank.1 (Signed) Chester B. Feldberg, In addition to the above-mentioned reasons, I [seal] Secretary of the Board. believe bank holding companies should be prohi­ bited from providing bank management consulting Dissenting Statement of advice because this activity fails to meet the public Governor Brimmer benefits test set forth in section 4(c)(8) of the Act. Section 4(c)(8) of the Act requires the Board to I would deny this application by United Virginia consider whether the performance of an activity Bankshares to engage in bank management con­ by a bank holding company “can reasonably be sulting. expected to produce benefits to the public, such As stated in my dissent to the application of as greater convenience, increased competition, or The Citizens and Southern Corporation to acquire gains in efficiency, that outweigh possible adverse Bank Management Advisory Services, Inc. (1974 effects, such as undue concentration or resources, Bulletin 226), I believe that the provision of decreased or unfair competition, conflicts of inter­ such services by a bank holding company is con­ est or unsound banking practices.” As stated more trary to the purposes of the Act, in conflict with fully in my Dissenting Statement in The Citizens the Board’s regulations, and not in the public and Southern Corporation case, I believe the pos­ interest. sible adverse effects of this activity clearly out­ Upon approval of this application, United Vir­ weigh any benefits to the public. ginia bankshares Incorporated will be able to For the reasons I expressed in this Statement advise banks outside of its holding company sys­ and those expressed in my earlier Dissenting tem on how to manage their banking business. Statement (1974 Bulletin 226), I would deny This is contrary to the basic purposes of the Act this application, and I would prohibit bank holding which was enacted to provide adequate safeguards companies from providing management consulting against undue concentration of control of banking advice to nonaffiliated banks. activities and to regulate the expansion of bank holding companies. The Act requires that bank ’Section 225.2(b)(3) of Regulation Y (12 CFR 225.2(b)(3)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 677 ORDERS NOT PRINTED IN THIS ISSUE During August 1974, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation First Commerce Corporation First National Bank of Commerce, 8/6/74 39 F.R. 29052 New Orleans, Louisiana New Orleans, Louisiana 8/13/74 Intermountain Bankshares Kanawha Banking & Trust Com- 8/1/74 39 F.R. 28566 Company, Charleston, pany National Association, 8/8/74 West Virginia Charleston, West Virginia and Community Bank & Trust, N.A., Fairmont, West Virginia Marco Capital Corporation, Marshall County Bank & Trust 8/5/74 39 F.R. 29055 Wilmington, Delaware Company, Plymouth, Indiana 8/13/74 Mountain Financial Services, Northwest State Bank, Arvada, 8/19/74 39 F.R. 30865 Inc., Denver, Colorado Colorado 8/26/74 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation City National Bank Corporation, City National Bank of South 8/2/74 39 F.R. 29051 Miami, Florida Dade, Dade County, Florida 8/13/74 Commercial Bank Investment The Bank of Colorado, 8/23/74 39 F.R. 31953 Company and Commercial Colorado Springs, Colorado 9/3/74 Bancorporation of Colorado, Sterling, Colorado Mercantile Bancorporation, Inc., The Drovers and Merchants Bank, 8/19/74 39 F.R. 30864 St. Louis, Missouri St. Joseph, Missouri 8/26/74 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Non banking Company (effective Register Applicant (or activity) date) citation Charter Bancshares, Inc., Bank of Winfield, 8/30/74 39 F.R. 32794 Northfield, Illinois Winfield, Illinois 9/11/74 First Commerce Corporation, First Boeing Data Services, Inc., 8/28/74 39 F.R, 32192 New Orleans, Louisiana New Orleans, Louisiana 9/5/74 Industrial National Corporation, J. R. Gentry d/b/a Security Loan 8/16/74 39 F.R. 30863 Providence, Rhode Island Co., Bartow, Florida 8/26/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—Continued Federal Effective Register Applicant Banks date citation Patagonia Corporation, General Finance Ltd., 8/6/74 39 F.R. 29055 Tucson, Arizona Council Bluffs, Iowa 8/13/74 Pittsburgh National Corporation, Central Mortgage & Investment 8/16/74 39 F.R. 30865 Pittsburgh, Pennsylvania Company, Colorado Springs, 8/26/74 Colorado United Carolina Bancshares Hometown Loan Corporation, 8/30/74 39 F.R. 32796 Corporation, Whiteville, Manchester, Georgia 9/11/74 North Carolina ORDERS ISSUED BY FEDERAL RESERVE BANKS During July and August 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 Effective Register Applicant Bank(s) Reserve Bank date citation First Commercial Banks Inc. The Oystermen’s Bank and New York 8/6/74 39 F.R. 29972 Albany, New York Trust Company, Sayville, 8/19/74 New York Equitable Bancorporation, Truckers and Savings Bank, Richmond 8/14/74 39 F.R. 30862 Baltimore, Maryland Salisbury, Maryland 2/26/74 NB Corporation, Peoples Bank and Trust Richmond 8/6/74 39 F.R. 29973 Charlottesville, Virginia Company, Henrico County, 8/19/74 Richmond, Virginia Landmark Banking Corpora­ Brandon State Bank, Atlanta 8/20/74 39 F.R. 31954 tion of Florida, Fort Brandon, Florida 9/3/74 Lauderdale, Florida Southern Bancorporation, Citizens Bank and Trust Atlanta 7/31/74 39 F.R. 29973 Birmingham, Alabama Company, Selma, Alabama 8/19/74 ORDERS UNDER BANK MERGER ACT— APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank Reserve Bank date citation The Oystermen’s Bank and Sayville Bank and Trust New York 8/6/74 39 F.R. 30862 Trust Company, Sayville, Co., Sayville, New York 8/26/74 New York First Virginia Bank of The Farmers National Bank Richmond 8/22/74 39 F.R. 32192 Roanoke Valley, of Salem, Salem, 9/5/74 Roanoke, Virginia Virginia PBT Bank, Peoples Bank and Trust Richmond 8/6/74 39 F.R. 29973 Henrico County, Company, Henrico 8/19/74 Richmond, Virginia County, Richmond, Digitized for FRASER Virginia http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

679 Announcements FAC STATEMENT ON efforts of the administration and other segments BANK LENDING POLICIES of our national Government, in consultation with a broad representation of interested groups in the The Board of Governors of the Federal Reserve private sector, to identify appropriate and effective policies to deal with this problem. System released on September 16, 1974, a state­ ment on bank lending policies that was received As bankers we are acutely aware of the dispro­ from the Federal Advisory Council, a statutory portionate role that a restrictive monetary policy has had to bear thus far in the fight against infla­ body established under the Federal Reserve Act. tion. We are particularly hopeful that fiscal and The statement suggests how banks can effectively other measures will be adopted that will soon adapt lending policies in the current period of alleviate this excessive reliance on monetary re­ credit restraint. straint and high interest rates, because government spending and budget deficits are a major cause of The Board believes the Council’s statement can inflation. be helpful to commercial banks in formulating their lending policies under current circumstances. We recognize, however, that regardless of the measures adopted, money and credit will neces­ The Board regards restraint in lending policies sarily remain limited in supply as long as infla­ as essential to the national effort to control infla­ tionary pressures persist. We are confident that tion. Restraint best serves the public interest when sufficient money will be made available to assure limited credit resources are used in ways that orderly operation of credit markets and to provide for the resumption of real growth in the economy. encourage expansion of productive capacity, sus­ However, we foresee a period of considerable tain key sectors of national and local economies, duration when the supply of lendable funds will provide liquidity for sound businesses in tempo­ be limited, and when, therefore, it will be neces­ rary difficulty, and take account of the legitimate sary for banks to restrict the growth in their loan needs of individuals and of small as well as large portfolios by selecting carefully and responsibly the uses to which they put their loanable funds. businesses. The Board noted particularly that the Council It is also clear that this process contributes to the in its statement recognized “the special vulnera­ very desirable objective of reducing interest rates, a development banks welcome. Relief from the bility of the homebuilding industry.” An active present unprecedentedly high rates would be par­ homebuilding industry is vital to the well-being ticularly beneficial to those segments of the econ­ of local communities as well as of the Nation as omy that are by their nature heavily dependent on a whole, and it is to the interest of banks and borrowed money, such as housing and public other financial institutions to give reasonable sup­ utilities. port to the financial needs of that industry. In view, therefore, of the extreme importance of The Federal Advisory Council is composed of bank lending policies in today’s environment, we 12 leading bankers, one from each Federal Reserve should like to describe those policies that we believe are appropriate in present circumstances district. It was created by the Federal Reserve Act and that, we feel, are already being followed by and under law is required to meet with the Board many banks. of Governors at least four times a year. The The basic credit needs for normal operations of statement stems from a discussion of bank lending all established business customers should, of policies during a recent FAC meeting with the course, be met to assure the production and distri­ Board. bution of goods and services. The FAC statement, which together with the Loans to finance capital investment by business Board’s covering statement, was mailed to all are also appropriate, where access to capital mar­ member banks in the Federal Reserve System, is kets is not available and where the investment is as follows: reasonable in size and necessary to maintain or improve productivity, or to increase capacity to meet existing or clearly anticipated demand. In The members of the Federal Advisory Council considering such loans, banks should weigh the firmly believe that inflation remains our most acute relative importance of the particular business with domestic problem and that the effort to reduce it respect to such factors as the nature of its product deserves the full dedication of all Americans. We or service and its significance as an employer in have been pleased recently to observe the renewed the local area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 Particular consideration should be given to the Longer-term CD’s of $100,000 or more and needs of established businesses that are basically related instruments will continue to be subject to sound but that suffer a temporary lack of liquidity the regular 5 per cent reserve requirement on time because of present conditions. deposits. Loans for purely financial activities, such as ac­ Partial removal of the marginal reserve require­ quisitions or the purchase of a company’s own ment was effective on deposits outstanding in the shares, would normally not be appropriate uses week of September 5-11. Banks were required to of limited bank funds. maintain reserves against these deposits 2 weeks Loans for speculative purposes, such as purchasing later, in the week of September 19-25. securities or commodities other than in the ordi­ nary course of business, excessive inventory ac­ The action reduces total reserves by about $400 cumulation, or investing in land without well- million at a time when there is a seasonal need defined plans for its useful development, are not to provide reserves to the banking system. generally suitable. The full reserve requirement (the regular 5 per A regrettable aspect of restrictive monetary policy cent plus the marginal 3 per cent) will continue is that it tends to produce an uneven impact, to apply to large CD’s with an initial maturity of bearing more heavily on some sectors of the econ­ less than 4 months. All large CD’s outstanding omy than others. Therefore, banks should make on September 5 with a remaining maturity of 4 an effort to utilize their limited funds equitably, giving consideration, for instance, to the special months or longer and all CD’s issued on Sep­ vulnerability of the homebuilding industry. tember 5 or thereafter with initial maturities of 4 months or longer will be affected by the action. Similarly, consumer credit should receive its share of bank funds. The basic requirements of individ­ A marginal reserve requirement (the regular 5 uals for household needs and automobiles should per cent plus a supplemental 3 per cent) was first be accommodated, but discretionary spending that announced by the Board on May 16, 1973. An might be deferred should not be encouraged. additional 3 per cent marginal reserve was an­ Loans to foreigners that are funded from domestic nounced by the Board on September 7 raising the sources should also be weighed against the above total reserve requirements on affected deposits to criteria. In addition, banks should give careful 11 per cent. This latter 3 per cent reserve was consideration to the diversion of loan funds from removed by the Board last December. U.S. customers through such loans. Technically, the marginal reserve requirement Implicit in these policies is a need for close com­ applies to increases (beyond the amount outstand­ munication and counseling between bankers and ing in the week ended May 16, 1973) in the total their customers to agree on ways to reduce or defer borrowing needs or to identify alternate sources of (a) time deposits in denominations of $100,000 of financing. and over and (b) bank-related commercial paper and finance bills with a maturity of 30 days or The Council recognizes that it is impossible to prescribe a precise and particular list of priorities longer. In no case does the supplemental reserve for proper bank lending. We do feel, however, apply to banks whose large CD’s total less than that the policies outlined describe a responsible $10 million. posture that is appropriate to present circum­ The new action also affects certain nonmember stances. We believe that governmental credit allo­ State banks and U.S. agencies and branches of cations are not needed and that they would be counter-productive. foreign banks that have been voluntarily holding marginal reserves on large CD’s at the request of We are confident that the Nation’s banks will the Board. continue to cooperate with our Government and all sectors of the economic community in imple­ menting sound and necessary national policy. AMENDMENT TO REGULATION H CHANGE IN MARGINAL RESERVE REQUIREMENT The Board of Governors amended on September The Board of Governors announced on September 16, 1974, a regulatory provision that prohibits 4, 1974, the removal of its 3 per cent marginal State member banks from lending on improved reserve requirement on large-denomination certifi­ real estate or a mobile home in flood-prone areas cates of deposit with an initial maturity of 4 unless the property is covered by flood insurance. months or longer. The amendment requires State member This regulatory action will lower somewhat the banks—as a condition of making or renewing a cost to banks of issuing longer-term CD’s and loan secured by affected property—to provide a should therefore encourage banks to lengthen the loan customer with written notice that the property maturities of their large CD’s. is in a flood-hazard area. This amendment imple­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 681 ments a statutory change adopted August 22, sume his duties as Adviser to the Board in the 1974, to the Housing and Urban Development Act field of international finance and as international of 1968. The original regulatory provision was economist of the Federal Open Market Committee. issued by the Board on February 6, 1974. Similar rules are being issued by other Federal regulatory agencies for institutions they supervise. DIRECTOR CHANGES AT FEDERAL RESERVE BRANCHES BANK HOLDING COMPANY ACTIVITIES DECISION Robert J. Buckley, President, Allegheny Ludlum Industries, Inc., Pittsburgh, Pennsylvania, was The Board of Governors announced on September appointed as Director of the Pittsburgh Branch of 11, 1974, that it had decided it would not be the Federal Reserve Bank of Cleveland, effective appropriate at this time to add the underwriting June 12, 1974, to succeed Douglas Grymes, Pres­ of mortgage guarantee insurance to the activities ident, Koppers Company, Pittsburgh, Pennsyl­ permissible for bank holding companies. vania, who resigned effective May 1, 1974. The Board’s decision follows an oral presenta­ Lacy I. Rice, Jr., President, The Old National tion held on this matter in January 1974 at which Bank of Martinsburg, and President, Suburban proponents and opponents expressed views. National Bank, Martinsburg, West Virginia, was appointed as Director of the Baltimore Branch of REVISED MONEY STOCK DATA the Federal Reserve Bank of Richmond, effective August 8, 1974, to succeed the late Douglass Money stock and related measures, shown on Adams, President, The Parkersburg National pages A-14 and A-15, have been revised to reflect Bank, Parkersburg, West Virginia. new benchmark data for nonmember banks avail­ Clarence L. Turnipseed, President, First Na­ able from the April 24, 1974, call report. Revi­ tional Bank, Brewton, Alabama, was appointed sions for M1 and M2 affect weekly and monthly as Director of the Birmingham Branch of the data for the same period. Detailed data were pub­ Federal Reserve Bank of Atlanta, effective July lished in the H.6 release, “Money Stock Meas­ 12, 1974, to succeed Lawrence Harris, President, ures,” for August 22, 1974, and are available from Slocomb National Bank, Slocomb, Alabama, who the Banking Section of the Board’s Division of resigned effective March 15, 1974. Research and Statistics. J. Luther Davis, Chairman of the Board* and President, Tucson Gas and Electric Company, CHANGES IN BOARD STAFF Tucson, Arizona, was appointed as Director of the The Board of Governors of the Federal Reserve El Paso Branch of the Federal Reserve Bank of System has announced the following staff ap­ Dallas, effective July 19, 1974, to succeed Allan pointments, effective August 28, 1974: B. Bowman, President, Amax Arizona, Tucson, Peter E. Barna as Program Director, and Robert Arizona, who resigned effective July 1, 1974. S. Plotkin as Assistant Program Director, for Bank Holding Company Analysis in the Office of Man­ aging Director for Operations under the general ADMISSION OF STATE BANKS TO supervision of Samuel B. Chase, Jr., Adviser to MEMBERSHIP IN THE the Board. FEDERAL RESERVE SYSTEM Mr. Barna, formerly Senior Vice President of the Riviere Realty Trust Company, Washington, The following banks were admitted to membership D.C., holds a B.S. degree from Indiana University in the Federal Reserve System during the period and is a certified public accountant. Prior to his August 16, 1974, through September 15, 1974: appointment Mr. Plotkin was Assistant General Counsel in the Board’s Legal Division. Illinois Robert Solomon has returned to the Board after Chicago...................................Midwest Securities a 2-year leave of absence serving as a Vice Chair­ Trust Company man of the Deputies of the Committee on Reform of the International Monetary System and Related Virginia Issues (Committee of 20). Mr. Solomon will re­ Arlington County.......First Commercial Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 Industrial Production Released for publication September 13 Industrial production declined an estimated 0.4 per cent in August and, at 125.2 per cent of the 1967 average, was 1.0 per cent below a year earlier. The August decline was caused mainly by strikes in various industries and cutbacks in output of durable consumer goods, other than automobiles, and construction products. Auto assemblies were at an annual rate of 7.9 million units during August compared to a 7.8 million unit rate in July. Production of household appliances, furniture, and other household goods declined about 2.5 per cent in August. Output of business equipment also declined largely because of work stoppages in the electrical industry. Production of durable goods materials, includ­ ing steel, increased in August, and output of nondurable materials was unchanged. Strikes at iron and coal mines and in the copper industry reduced production in mining and at copper fabri­ cating factories. F.R. indexes, seasonally adjusted. Latest figures: August. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate Industrial production 1974 1973 1974 Month Year ago ago Juner Julyp Aug.e Q4 Ql Q2 Total ........................................................ 125.8 125.7 125.2 -.4 -1.0 .9 -6.6 1.9 Products, total ............................................... 124.0 124.2 122.9 -1.0 -.6 1.3 -5.8 2.6 Final products ............................................. 122.5 122.9 121.3 -1.3 -.1 3.3 -6.5 3.0 Consumer goods ................................... 130.0 130.2 129.9 -.2 -1.0 1.2 -11.5 2.2 Durable goods ................................. 132.7 133.0 130.8 -1.7 -2.4 -4.0 -26.6 13.8 Nondurable goods ......................... 129.0 129.1 129.5 .3 -.5 3.1 -5.2 -2.2 Business equipment ........................... 130.3 130.4 128.2 -1.7 2.9 8.0 .6 7.2 Intermediate products ............................. 129.3 128.8 128.6 -.2 -2.6 -4.8 -4.6 1.6 Construction products ....................... 130.1 129.6 128.6 -.8 -5.0 -5.6 -5.1 -2.1 Materials ............................................................ 129.1 128.4 128.9 .4 -1.5 .3 -6.4 .0 'Revised. "Preliminary. 'Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 M em ber bank reserves, Federal R eserve Bank credit, and related item s A 7 Federal funds— M ajor reserve city banks A 8 R eserve Bank interest rates A 9 R eserve requirem ents A 10 M aximum interest rates; margin requirem ents A 11 O pen m arket account A 12 Federal R eserve Banks A 13 Bank debits A 14 M oney stock A 15 Bank reserves; bank credit A 16 Com m ercial banks, by classes A 20 W eekly reporting banks A 25 B usiness loans of banks A 26 D em and deposit ow nership A 27 Loan sales by banks A 27 O pen m arket paper A 28 Interest rates A 31 Security m arkets A 32 Stock m arket credit A 32 Savings institutions A 34 Federal finance A 36 U.S. G overnm ent securities A 39 Federally sponsored credit agencies A 40 Security issues A 43 B usiness finance A 44 Real estate credit A 47 C onsum er credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 U.S. STATISTICS— Continued A 50 Industrial production A 52 B usiness activity A 52 Construction A 54 Labor force, em ploym ent, and unem ploym ent A 55 C onsum er prices A 55 W holesale prices A 56 National product and incom e A 58 Flow of funds INTERNATIONAL STATISTICS: A 60 U.S. balance of paym ents 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 O pen m arket rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governm ents TABLES PUBLISHED PERIODICALLY: A 79 Sales, revenue, profits, and dividends of large m anu­ facturing corporations M em ber banks, 1973: O perating ratios: A 80 By size of bank A 84 By Federal R eserve district A 93 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 G uide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted 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 I, II, S Sources of funds 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 (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 Annually—Continued Issue Page Sales, revenue, profits, and divi­ Banks and branches, number, dends of large manufacturing by class and State .................... Apr. 1974 A-88—A-89 corporations ................................ Sept. 1974 A-79 Flow of funds: Semiannually Assets & liabilities Banking offices: 1961-72 .................................. Sept. 1973 A-71.14—-A-71.28 Analysis of changes in number Aug. 1974 A-79 On, and not on, Federal Reserve Flows: Par List, number ................... Aug. 1974 A-80 1961-72 .................................. Sept. 1973 A-70—A-71.13 Annually Income and expenses: Bank holding companies: Federal Reserve Banks ................Feb. 1974 A-96—A-97 Banking offices and deposits of Insured commercial banks ...........June 1974 A-84—A-85 group banks, Dec. 31, 1973 June 1974 A-80—A-83 Member banks: July 1974 530 Calendar year .............................June 1974 A-84—A-93 Income ratios .............................June 1974 A-94—A-99 Banking and monetary statistics: Operating ratios .........................Sept. 1974 A-80—A-85 1973.............................................. Mar. 1974 A-96—A-109 July 1974 A-80—A-82 Stock market credit ............................Jan. 1974 A-96—A-97 Statistical R eleases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1974 A-106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Gold Drawing cur­ u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ assets 3 account stand­ 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 1960—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—Aug.. 76,653 76,475 178 2,144 '2,563 1,018 82,443 10,410 400 8,549 Sept.. 76,073 75,712 361 1,861 r2,925 889 81,810 10,410 400 8,584 Oct... 78,042 77,500 542 1,465 '2,936 1,122 83,644 10,933 400 8,613 Nov.. 78,457 77,937 520 1,399 '2,764 1,078 83,756 11,567 400 8,642 Dec.. 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—Jan... 80,793 80,608 185 1,044 3,385 1,258 86,568 11,567 400 8.705 Feb.. 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar.. 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 Apr.. 81,567 80,873 694 1,714 2,295 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. 82,812 81,859 953 3,000 2,114 1,106 89,254 11,567 400 8,877 July.. 84,313 83,496 817 3,308 2,267 1,343 91,554 11,567 400 8,905 Aug.? 84,493 84,221 272 3,348 2,023 1,258 91,404 11,567 400 8,951 Week ending— 1974—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 2,162 1,095 89,720 11,567 400 8,880 26. 83,815 82,049 1,766 2,788 2,055 1,160 90,068 11,567 400 8,891 July 3. 83,933 82,663 1,270 3,435 2,190 1,253 91,140 11,567 400 8,899 10. 83,990 83,007 983 2,640 2,951 1,259 91,157\ 11,567 400 8,898 17. 84,718 83,614 1,104 3,175 2,401 1,321 92,015 11,567 400 8,903 24. 84,429 84,153 276 3,641 2,027 1,397 91,722 11,567 400 8,907 31. 84,112 83,531 581 3,690 1,807 1,434 91,386 11,567 400 8,913 Aug. 7.. 83,648 83,648 3,089 2,100 1,461 90,516 11,567 400 8,938 14*. 83,486 83,486 3,040 2,024 1,524 90,291 11,567 400 8,953 21 *., 85,394 84,720 674 3,437 1,975 914 92,033 11,567 400 8,955 28*., 85,176 84,646 530 3,533 1,860 1,145 92,101 11,567 400 8,961 End of month June.. 83,612 9 82,646 966 3,210 2,297 1,264 90,687 11,567 400 8,924 July... 81,688 9 81,688 3,589 2,631 1,684 89,810 11,567 400 8,965 Aug.*. 84,951 9 84,951 4,321 1,487 1,268 92,304 11,567 400 8,964 Wednesday 1974—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., 82,283 8 82,283 2,486 3,044 1,134 89,042 11,567 400 8,886 26.. 83,555 8 81,976 i j 579 2,978 2,621 1,196 90,607 11,567 400 8,892 July 3. 84,027 8 82,745 1,282 3,002 2,668 1,266 91,346 11,567 400 8,897 10. 84,510 8 83,086 1,424 2,271 3,544 1,343 92,057 11,567 400 8,898 17. 84,829 8 83,775 1,054 4,048 3,070 1,369 93,663 11,567 400 8,906 24. 85,229 8 84,294 935 5,639 2,158 1,419 94,910 11,567 400 8,911 31. 81,688 9 81,688 3,589 2,631 1,684 89,810 11,567 400 8,965 Aug. 7.. 82,121 9 82,121 2,889 2,660 1,560 89,445 11,567 400 8,949 14*. 83,803 9 83,803 2,915 2,189 1,540 90,662 11,567 400 8,954 21*. 85,816 8 85,050 766 3,113 2,386 1,118 92,748 11,567 400 8,959 28*. 81,523 9 80,996 527 3,434 2,367 1,112 88,844 11,567 400 8,964 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. lf 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-l2. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- Bulletin, p. 164. owned banking institutions held with member banks and redeposited in 8 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. full with Federal Reserve Banks in connection with voluntary participa­ liabilities and capital” are shown separately; formerly, they were tion by nonmember institutions in the Federal Reserve System’s program netted together and reported as “Other F.R. accounts.” of credit restraint. 4 Includes industrial loans and acceptances until Aug. 21, 1959, when Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank r C e c i n i u n r c r ­ y ­ T c u r a e r s a y h s­ with r e F s . e R rv . e B s, a nks O F t . h R e . r b O F i l l t . i i h R a ti ­ e e . r s reserves Period or date c t u io la n ­ h i o ng ld s ­ counts3 ca a p n it d al3 F W .R ith . r C e a n n u c d r y ­ Total 7 Banks coin6 Averages of daily figures 7,609 2,402 248 11,473 11,473 .........................1939—Dec. 10,985 2,189 292 12,812 12,812 .........................1941—Dec. 28,452 2,269 493 16,027 16,027 .........................1945—Dec. 27,806 1,290 739 17,391 17,391 .........................1950—Dec. 33,019 408 1,029 16,688 2,595 19,283 .........................1960—Dec. 50,609 756 360 -1,105 22,484 4,737 27,221 .........................1968—Dec. 53.591 656 1,194 2,192 23,071 4,960 28,031 .........................1969—Dec. 57,013 427 849 2,265 23,925 5,340 29,265 ..........................1970—Dec. 61,060 453 1.926 2,287 25,653 5,676 31,329 ..........................1971—Dec. 66,060 350 1,449 2,362 24,830 6,095 31,353 .........................1972—Dec. 68,394 344 1,674 2,877 r27,375 6,296 33,783 .........................1973—Aug. 68.592 349 792 2,848 *•27,510 6.402 34,020 ......................................Sept. 68,909 622 1,718 2,866 r28,458 6,371 34,913 ......................................Oct. 69,927 340 1,772 2,854 r28,259 r6,382 34,725 ......................................Nov. 71,646 323 1,892 2,942 28,352 6,635 35,068 .....................................Dec. 70,962 349 2,488 2,904 29,396 7,192 36,655 .......................1974—Jan. 70,411 342 2,972 2,932 28,574 6,601 35,242 ......................................Feb. 71,081 334 1,803 2,998 28,450 6,450 34,966 .....................................Mar. 72,176 308 1,712 2,985 29,469 6.402 35,929 ......................................Apr. 72,876 286 3,000 3,168 29,861 6,600 36,519 ......................................May 73,749 293 2,015 3,187 29,672 6,668 36,390 ......................................June 74,556 275 2,795 3,216 30,514 6,824 37,338 .....................................July 74,709 282 2,633 3,240 30,301 6,764 37,065 .....................................Aug. Week ending— 73,344 302 2,804 399 5 694 3,275 29,562 6,659 36,279 ...................1974—June 5 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 30,019 6,631 36,708 ...........................................19 73,689 298 2,659 343 5 687 3,265 29,985 6,493 36,536 ..........................................26 74,112 287 2,781 350 5 777 240 30,459 6,815 37,274 ...............................July 3 74,876 275 2,957 289 5 753 050 29,820 7,048 36,868 ..........................................10 74,849 266 2,366 303 5 786 193 31,122 6,702 37,824 ........................................17 74,441 270 2,721 283 5 757 271 30,853 6,564 37,417 ..........................................24 74,081 283 3,214 293 5 785 390 30,218 6,986 37,204 ..........................................31 74,383 282 2,730 274 5 799 3,053 29,900 7,020 36,920 ..............................Aug. 7 74,916 274 1,875 269 5 875 3,107 29,895 7,047 36,942 ..........................................14* 74,872 279 2,447 428 5 833 3,262 30,834 6,353 37,187 ..........................................21* 74,613 281 3,191 307 5 779 3,390 30,467 6,609 37,076 ..........................................28* End of Month 73,833 274 2,919 384 5 762 3,319 30,086 6,815 36,901 .....................................June 74,373 269 3,822 330 1,169 3,403 27,376 6,986 34,362 .....................................July 74,854 307 3,303 372 5 654 3,532 30,213 6,823 37,036 .....................................Aug Wednesday 73,740 300 1,340 330 5 683 2,931 27,896 6,659 34,613 .................1974—June 5 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 28,060 6,631 34,749 ........................................19 73,932 303 2,693 282 5 699 3,286 30,270 6,493 36,821 .........................................26 74,749 288 2,590 269 5 637 2,971 30,706 6,815 37,521 .............................July 3 75,154 277 2,447 241 5 764 3,144 30,894 7,048 37,942 ........................................10 74,848 285 2,714 257 5 797 3,170 32,465 6,702 39,167 ........................................17 74,411 268 3,001 254 5 732 3,350 33,771 6,564 40,335 ........................................24 74,373 269 3,822 330 5 1,169 3,403 27,376 6,986 34,362 .........................................31 74,877 289 1,891 261 5 675 3,030 29,338 7,020 36,358 .............................Aug. 7 75,140 290 1,969 248 5 929 3.141 29,865 7,047 36,912 ........................................14* 74,882 294 2,456 303 5 738 3,290 31,711 6,353 38,064 ........................................21* 74,973 306 2,950 324 5 723 3,429 27,069 6,609 33,678 ........................................28* <5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 1974 Ql, $67 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

A 6 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held1 quired sonal ings ings ings ings 1939—Dec..................... 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec...................... 12,812 9,422 3,390 5 989 295 1,303 1 804 4 1945—Dec..................... 16,027 14,536 1,491 334 48 192 14 418 96 1,011 46 1950—Dec..................... 17,391 16,364 1,027 142 125 58 8 5 232 50 663 29 1960—Dec..................... 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec...................... 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—Dec..................... 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec..................... 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec..................... 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec..................... 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec..................... 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—Dec..................... 31,353 31,134 219 1,049 -20 301 13 55 -42 429 — 160 264 1973—Aug..................... 33,783 33,540 243 2,144 163 34 109 -8 53 8 755 97 1,227 ..................... 34,020 33,775 245 1,861 147 S-e6pt 115 24 62 40 712 79 972 Oct...................... 34,913 34,690 223 1,465 126 11 74 1 54 17 589 110 748 34,725 34,543 182 1,399 84 27 180 -24 28 -20 593 115 598 Dec..................... 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Jan....................... 36,655 36,419 236 1,044 18 65 135 -44 17 -8 549 156 343 Feb...................... 35,242 35,053 189 1,186 17 51 87 -19 18 -51 635 141 446 Mar..................... 34,966 34,790 176 1,352 32 21 113 -61 65 43 689 107 485 Apr..................... 35,929 35,771 158 1,714 50 19 114 69 41 -58 987 70 572 36,519 36,325 194 2,580 102 -20 772 29 20 -4 939 131 849 June.................... 36,390 36,259 131 3,000 130 -26 1,303 -8 51 26 799 89 847 July..................... 37,338 37,161 177 3,308 149 45 1,457 19 70 -12 848 125 933 37,065 36,836 229 3,348 165 -72 1,464 -2 22 10 855 131 1,007 Week ending— 1973—Aug 1 r 34,051 33,552 499 2,095 141 266 12 88 -5 785 114 1,222 8r........... 33,456 33,381 75 2,005 158 -39 90 24 41 -68 741 46 1,133 15 r........... 33,829 33,515 314 1,916 148 24 50 -3 54 21 658 160 1,154 22 r........... 33,601 33,562 39 2,134 163 -24 172 2 36 -87 711 36 1,215 29 r........... 33,797 33,674 123 2,558 185 -47 137 -21 68 2 947 77 1,406 1974—jan. 2............. 35,656 35,268 388 1,210 31 80 140 -6 141 24 599 223 330 9............. 36,296 36,210 86 776 19 2 271 -47 44 -96 174 160 287 16............. 37,702 37,374 328 988 20 59 45 16 27 681 159 262 23............. 36,610 36,693 -83 1,182 13 -114 183 -12 -110 655 86 344 30............. 36,139 35,880 259 1,220 17 104 20 -57 15 733 130 467 Feb. 6............. 35,475 35,351 124 998 18 -123 14 34 494 132 504 13............. 35,348 35,054 294 1,153 15 144 92 -23 56 -34 585 140 420 20............. 35,388 35,274 114 1,376 20 -37 257 -63 -42 711 189 408 27............. 34,851 34,645 206 1,251 16 70 — 17 13 —24 780 110 458 Mar. 6............. 34,633 34,515 118 912 19 -81 123 13 11 1 364 118 414 13............. 34,748 34,632 116 983 19 41 11 -8 66 -82 507 98 399 20............. 35,209 35,129 80 1,483 35 -41 333 -3 15 -36 679 93 456 27............. 34,774 34,605 169 1,713 43 10 31 40 21 -16 1,061 68 600 Apr. 3............. 35,443 35,217 226 1,503 44 77 34 -9 189 -27 710 127 570 10............. 35,002 34,940 62 1,194 41 -73 108 4 53 6 663 67 370 17............. 36,256 35,927 329 1,816 46 78 107 -19 101 37 1,093 175 515 24............. 36,055 35,916 139 1,939 52 -12 69 70 4 -12 1,233 35 633 May 1............. 36,845 36,668 177 2,157 74 62 176 -47 17 -34 1,140 138 824 8............. 36,336 36,201 135 1,616 82 -57 134 41 14 10 822 83 646 15............. 36,646 36,470 176 1,977 94 83 506 -39 37 -63 731 137 703 22............. 36,616 36,487 129 3,090 112 -55 993 57 7 -9 1,131 78 959 29............. 36,349 26,170 179 3,606 114 32 1,449 -17 9 -10 1,081 116 1,067 36,279 36,054 225 3,054 131 J-u3n7e 51...,.2..1..0..... 2 15 61 846 141 983 12............. 35,789 35,658 131 2,729 136 26 1,296 21 40 -67 629 93 764 19............. 36,708 36,461 247 3,223 140 31 1,385 -17 139 44 984 131 715 26............. 36,536 36,437 99 2,788 133 -8 1,221 41 17 -76 690 84 860 July 3............ 37,274 36,905 369 3,435 127 9 1,412 111 137 72 878 177 1,008 10............. 36,868 36,590 278 2,640 136 90 1,339 1 52 84 432 103 817 17............ 37,824 37,840 -16 3,175 150 -75 1,536 26 15 -74 786 107 838 24............. 37,417 37,302 115 3,641 156 17 1,538 -41 80 81 1,108 58 915 31............. 37,204 37,020 184 3,690 163 33 1.431 1 38 13 1,086 137 1,135 Aug. 7............. 36,920 36,692 228 3,089 174 -7 1,420 9 24 54 644 172 1,001 14 v........... 36,942 36,797 145 3,040 160 4 1.431 -24 24 -113 717 80 868 21 p.......... 37,187 36,924 263 3,437 166 -26 1,447 -14 21 7 958 113 1,011 28p........... 37,076 36,893 183 3,533 161 68 1,457 35 20 -140 951 81 1,105 1 Beginning with week ending Nov. 15, 1972, includes $450 million of for July 1972, p. 626. Categories shown here as “Large” and “All other” reserve deficiencies on which F.R. Banks are allowed to waive penalties parallel the previous “Reserve city” and “Country” categories, respectively for a transition period in connection with bank adaptation to Regulation J (hence the series are continuous over time). as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Ql, $279 Note.—Monthly and weekly data are averages of daily figures within million; Q2, $172 million; Q3, $112 million; Q4 million. Beginning 1974 the month or week, respectively. Beginning with Jan. 1964 reserves are Ql, $67 million, Q2, $58 million, transition period ended after second estimated except for weekly averages. quarter, 1974. Borrowings at F.R. Banks: Based on closing figures. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks Effective Apr. 19, 1963, the Board’s Regulation A, which governs lend­ for reserve-requirement purposes has been based on size of bank (net ing by Federal Reserve Banks, was revised to assist smaller member banks demand deposits of more than $400 million), as described in the Bulletin to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions U R .S e . l G at o e v d t, t r s a e n c s u a r c it t i i e o s n d s e w al i e th rs Less— Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N d a n t n e e e d t r r k s a ­ l S d u e r o f p i r c lu it s r P r e e e q a s r u e v o c r g i f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c o b P u h a f y a u n n s i r k n e e ­ s s g t s o b S e a f a l l n l n i e k n e s s g t d L ea o t l a o e n rs s 3 de f r B i a r o n o l o w g e m r s r ­ ­ s4 lo N a e n t s trans. Total—46 banks 1974—juiy 3............. 65 817 12,007 -12,759 75.3 19,030 7,023 6,098 12,933 925 1,806 1,051 756 10............. 222 267 14,249 -14,293 85.5 20,324 6,075 5,646 14,678 429 1,788 1,091 698 17............. 120 327 13,591 -13,798 77.5 19,453 5,862 5,373 14,080 489 1,655 1,154 501 24............. 63 284 7,330 -7,551 SO. 7 14,823 7,493 4,719 10,104 2,773 1,309 483 826 31............. 100 411 11,757 -12,068 70.6 17,690 5,933 4,872 12,818 1,060 2,483 985 1,498 Aug. 7............. 107 123 14,388 -14,404 84.6 20,168 5,779 5,005 15,162 774 3,168 1,170 1,998 14............. 179 224 14,512 -14,556 84.9 20,111 5,600 4,809 15,303 791 3,152 1,030 2,122 21............. 161 454 12,484 -12,777 74.4 18,306 5,822 4,746 13,560 1,076 2,642 1,159 1,483 28............. -1,092 295 11,501 - 12,888 70.2 17,223 5,723 4,578 12,646 1,145 2,583 1,098 1,485 8 in New York City 1974—July 3............. 23 159 3,658 -3,794 55.0 5,335 1,677 1,347 3,988 331 810 390 420 10............. 114 14 4,215 -4,116 61.3 5,933 1,718 1,518 4,414 199 846 558 287 17............. 11 127 3,856 -3,972 53.7 5,568 1,712 1,556 4,013 157 590 515 75 24............. -20 29 2,326 -2,374 39.2 4,669 2,343 1,253 3,416 1,090 636 264 373 31............. 47 21 3,137 -3,111 44.2 4,963 1,826 1.380 3,584 446 1,200 603 597 Aug. 7............. 25 4,490 -4,466 64.1 6,338 1,848 1,425 4,913 423 1,886 635 1,251 14............. 37 19 5,192 -5,174 72.7 6,381 1,188 1,105 5,276 84 1,784 648 1,136 21............. 6 4,178 -4,172 58.4 5,379 1,201 1,171 4,209 30 1,446 815 631 28............. 110 2,119 -3,010 43.4 4,580 1,461 1,173 3,407 289 1,280 806 474 38 outside New York City 1974—July 3............. 41 657 8,349 -8,966 89.3 13,695 5,346 4,751 8,944 595 997 661 336 10............. 109 252 10,034 -10,178 101.7 14,391 4,357 4,127 10,264 230 943 532 410 17............. 108 200 9,735 -9,826 94.3 13,885 4,150 3,818 10,067 333 1,065 639 426 24............. 83 255 5,004 -5,176 58.5 10,154 5,150 3,466 6,688 1,683 672 219 453 31............. 53 390 8,620 -8,957 89.0 12,727 4,107 3,493 9,234 614 1,283 382 901 Aug. 7............. 83 123 9,898 -9,938 98.8 13,829 3,932 3,580 10,249 352 1,282 535 747 14............. 142 205 9,319 -9,382 93.5 13,731 4,441 3,704 10,027 707 1,368 382 986 21............. 154 454 8,305 -8,605 85.7 12,927 4,621 3,575 9,351 1,046 1,196 344 852 28............. - 1,201 295 8,382 -9,878 86.4 12,643 4,261 3,405 9,238 857 1,303 292 1,011 5 in City of Chicago 1974—July 3............. 11 107 3,165 -3,261 172.3 3,934 769 762 3,172 7 287 287 10............. 6 21 3,552 -3,568 193.0 4,407 854 855 3,552 312 312 17............. 13 3,670 -3,657 185.0 4,510 840 840 3,670 318 318 24............. 51 1,885 -1,835 113.1 2,984 1,099 982 2,002 117 435 17 418 31............. 12 3,070 -3,058 165.3 3,889 819 777 3,112 42 366 366 Aug. 7............. 18 3,703 -3,685 198.3 4,524 821 812 3,712 9 332 332 14 . . 80 3,807 3,727 198.7 4,560 753 753 3,808 388 388 21 . 4 3,527 -3,523 183.4 4,290 763 763 3,527 302 302 28............. 27 3,470 -3,443 182.2 4,254 784 784 3,470 297 297 33 others 1974—July 3............. 30 550 5,184 -5,704 70.0 9,761 4,577 3,989 5,772 588 710 661 49 10............. 103 231 6,482 -6,610 81.0 9,985 3,503 3,273 6,712 230 631 532 98 17............. 95 200 6,064 -6,169 73.1 9,375 3,310 2,978 6,397 333 747 639 108 24............. 32 255 3,119 -3,341 46.3 7,170 4,051 2,484 4,686 1,567 231 202 35 31............. 41 390 5,550 -5,899 71.8 8,838 3,288 2,716 6,122 572 917 382 535 Aug. 7............. 65 123 6,195 -6,254 76.2 9,306 3,111 2,768 6,538 342 950 535 416 14............. 62 205 5,512 -5,655 69.3 9,170 3,658 2,951 6,219 707 980 382 598 21............. 150 454 4,779 -5,082 62.6 8,637 3,858 2,812 5,825 1,046 894 344 550 28............. -1,228 295 4,912 -6,435 67.5 8,389 3,477 2,621 5,768 857 1,006 292 714 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 □ SEPTEMBER 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a i Under Sec. 10(b):2 last par. Sec. 133 Federal Reserve Bank A R u a 1 g t 9 e . 7 4 o 31 n , Eff d e a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 7 4 3 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u 1 a g 9 te . 7 4 3 o 1 n , Ef d fe a c t t e ive Pre r v at io e us Boston.................................................. 8 Apr. 30, 1974 7*4 8*4 Apr. 30, 1974 8 10 Apr. 30, 1974 9 Vi New York........................................... 8 Apr. 25, 1974 m 8*4 Apr. 25, 1974 8 10 Apr. 25, 1974 9 Vi Philadelphia........................................ 8 Apr. 25, 1974 m 8% Apr. 25, 1974 8 10 Apr. 25, 1974 9 Vi Cleveland............................................ 8 Apr. 25, 1974 m 8% Apr. 25, 1974 8 10 Apr. 25, 1974 9Vi 8 Apr. 25, 1974 m 8% Apr. 25, 1974 8 10 Apr. 25, 1974 9 Vi 8 Apr. 29, 1974 m 81/z Apr. 29, 1974 8 10 Apr. 29, 1974 9 Vi Chicago................................................ 8 Apr. 26, 1974 7*4 8% Apr. 26, 1974 8 10 Apr. 26, 1974 9i/2 8 Apr. 26, 1974 m 8*4 Apr. 26, 1974 8 10 Apr. 26, 1974 9 Vi Minneapolis........................................ 8 Apr. 26, 1974 7% 8*4 Apr. 26, 1974 8 10 Apr. 26, 1974 9 Vi 8 Apr. 25, 1974 7*4 8% Apr. 25, 1974 8 10 Apr. 25, 1974 91/2 8 Apr. 25, 1974 m 8% Apr. 25, 1974 8 10 Apr. 25, 1974 9 Vi San Francisco.................................... 8 Apr. 25, 1974 7*4 8% Apr. 25, 1974 8 10 Apr. 25, 1974 9Vi i Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and of agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully over 6 months and 9 months, respectively. guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954........ 1 Vi 1*4 1959—Mar. 6..................... 21/4-3 3 1970—Dec. 1..................... 51/2-53/4 534 16..................... 3 3 4..................... 5V4-534 51/2 1955—Apr. 14..................... 11/2-134 m May 29..................... 3 -3 Vi 31/2 11.....................* 51/2 5*4 1 1 5 5 2 . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . 2 1 l 1 % 3 * 4 1 4 - - - % - 2 h 1 2 % * % a 4 2 2 1 1 m V % 4 1960— J J S u u e n n p e e t. 1 1 1 3 1 2 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 V 1 4 / 3 4 2 V - - 4 4 4 4 4 4 3*4 1971—Jan. 2 1 1 8 2 5 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 *4 5 - - * - 5 5 5 4 1 * 1 / 4 4 2 5 5 5 5 1 * * / 4 4 4 S N e o p v t . . 2 1 1 9 3 8 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 2 2 4 1 V - - / 2 4 2 i V % i 2 2 2 2 1 V 1 1 / 4 4 2 i S A e u p g t . . 1 1 1 9 2 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 V 3 3 4 V - - 4 4 31/2 3 3 3 3 * * 4 4 J F u e l b y . 2 2 1 1 1 9 9 3 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 4 4 5 3 3 3 4 4 4 - - 5 5 5 5 4 5 5 34 1956—A Au p g r. . 2 2 3 1 0 4 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 3 3 / 4 3 4 2 - - - 3 3 3 2 2 3 3 3 3 4 4 1 1 1 9 9 9 6 6 6 3 4 5 — — — J N D u o e ly c v . . 2 2 1 3 6 6 4 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 3 4 1 31 - - /2 3 / 4 2 - V 1 4 / 4 2 4 4 4 3 3 1 1 * / / 4 2 2 D N e o c v . . 2 1 1 1 1 4 7 1 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 43 * 3 * 4 4 4 4 i- 1 - - 4 / 4 5 2 3 3 4 4 4 4 4 4 5 3 * * 3 4 4 4 4 1957—Aug. 9..................... 3 -3Vi 3 13..................... 41/2 4*4 1973—Jan. 15..................... 5 5 1958— N D Ja o e n c v . . . 2 2 1 2 3 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 3 3 3 4 - % - 3 3 Vi 3 3 3 3 *4 1967— N A o p v r. . 2 2 1 7 0 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 41 - - / 4 4 2 1 1 / / 2 2 4 4 4 4V 1/ 4 2 M A M Fe p a a b r r y . . . 2 2 1 2 4 6 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 3 * 5 5 4 4 1 - 3 - - 5 / 6 4 5 2 1 % /2 6 5 5 5 5 1 3 * % / 4 4 2 Mar. 2 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 21 3 / 4 4 - - 3 3 2 21 3 / 4 4 1968—Mar. 2 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 V 5 i-5 4 5 1/2 June 1 18 1. . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . 6 6 -61/2 6 61/2 A S M A e u p a p g r y t . . . 2 2 1 1 1 1 9 1 3 8 5 3 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 l l 1 % % 1 3 2 4 2 m 4 1 - - - - 2 / 2 2 4 2 3 % 4 2 2 2 2 1 1 1 1 % % % % /4 Dec. 2 2 3 1 6 0 0 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 V *4 5 4 5 5 1 1 - - * - / 5 / 5 4 4 2 5 * 1 V / 4 2 4 5 5 5 5 5 5 * * * * * % 4 4 4 4 4 1974— J A A u u p ly g r. . 2 3 2 1 1 2 5 5 3 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 1 / 6 7 7 2 V * - 8 - 7 8 4 4 *4 6 7 7 7 8 8 * * * 4 4 i Oct. 24..................... 2 -21/2 2 1969—Apr. 4..................... 5*4-6 6 Nov. 7..................... 21/2 2*4 8..................... 6 6 In effect Aug. 31, 1974. .. . 8 8 1970—Nov. 11..................... 534-6 6 13..................... 534-6 534 16..................... 534 534 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

SEPTEMBER 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 V 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 5 0-5 5 6 In effect 1972—Nov. 9.. 10 12 7 161/2 171/2 83 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 Aug. 31, 1974 9 Id/2 121/2 131/2 18 1968—Jan. 11, 18. 16 Vi 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 16Vi 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 9 For changes to be effective in Sept. 1974, see “Announcements” on serve cities, and on the same date requirements for reserves against net p. 680 of the Sept. 1974 Bulletin. demand deposits of member banks were restructured to provide that each member bank will maintain reserves related to the size of its net demand Note.—All required reserves were held on deposit with F.R. Banks deposits. The new reserve city designations are as follows: A bank having June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member net demand deposits of more than $400 million is considered to have the banks were allowed to count part of their currency and coin as reserves; character of business of a reserve city bank, and the presence of the head effective Nov. 24, 1960, they were allowed to count all as reserves. For 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 □ SEPTEMBER 1974 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type of deposit Type of deposit July 20, Sept. 26, Apr. 19, Jan. 21, July 1, Nov. 1, 1966 1966 1968 1970 1973 1973 Savings deposits................ Savings deposits.................................................. Other time deposits:1 Other time deposits (multiple- and single­ Multiple maturity:2 maturity) : 30-89 days............. 4 4% Less than $100,000: 90 days to 1 year., 5 30-89 days............................................... 5 1 year to 2 years.. 5 51/z 90 days to 1 year.................................... 5% 2 years or more... 5Va 1 year to 2 Vi years................................. 6 2* Single-maturity: 2 Vi years or more.................................. 6*4 6V4 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% 51/2 $100,000 or more............................................ (3) (3) 2 years and over. . 53/4 $100,000 or more: 30-59 days........... 5 V4 (3) 60-89 days........... 5V4 (3) 90-179 days......... 5Vi 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r y e. e . a . r W/4 ( ( 3 3) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such Bulletin for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 per cent of its total 2 Multiple-maturity time deposits include deposits that are automati­ time and savings deposits. Sales in excess of that amount were subject to cally renewable at maturity without action by the depositor and deposits the 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. 30-59 days 614 per centl June 24, 1970 60-89 days 6 Vi per cent f 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 denomination 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. 40 50 1945—Feb. 5 July 4 , 50 50 July 5 1946—Jan. 20, , 75 75 1946—Jan. 21 1947—Jan. 31. , 100 100 1947—Feb. 1 1949—Mar. 29. , 75 75 1949—Mar. 30 1951—Jan. 16. , 50 50 1951—Jan. 17 1953—Feb. 75 75 1953—Feb. 20 1955—Jan. 3. 50 50 1955—Jan. 4 Apr. 60 60 Apr. 23 1958—Jan. 15. 70 70 1958—Jan. 16 Aug. 4, 50 50 Aug. 5 Oct. 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

SEPTEMBER 1974 □ OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills 1 Others within 1 year 2 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross 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—July.. 1,640 495 60 27 Aug.. 655 945 456 351 4,361 -4,812 100 Sept.. 480 401 564 836 -813 -23 Oct... 2,117 153 Nov.. 583 489 1,101 1,515 125 680 331 -2,220 35 ”25 Dec.. 1,919 70 10 34 116 -34 35 1974—Jan... 1,340 335 1,402 93 77 Feb.. 768 391 410 687 30 -922 200 35 Mar.. 664 566 165 109 25 Apr.. 1,237 49 407 172 May. 737 100 112 2,563 26 -2,663 ioo June. 614 954 204 48 34 July.. 988 211 27 53 Matched Repurchase Federal agency ob ligations 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—July... 1,666 495 60 3,405 3,405 7,651 6,686 2,076 174 6 106 -12 78 2,416 Aug... 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 20 157 -7 -41 -915 Sept... 1,316 401 1,400 6,981 6,981 3,309 2,752 72 30 -95 -9 69 7 Oct... 2,117 153 4,735 4,735 8,220 7,859 2,325 i 76 4 -20 8 -46 2,440 Nov... 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 -1,307 Dec__ 2,145 70 10 3,435 3,435 9,523 10,202 1,387 212 84 -126 23 -26 1,386 1974—Jan... 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 -328 Feb... 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 i 72 Mar... 854 566 165 702 702 '6,248 5,124 1,247 170 48 185 4 223 1,780 Apr... 1,409 49 407 8,069 8,498 524 360 48 33 8 __89 789 May.. 944 100 4,586 4,586 9,192 8,648 1,388 201 15 424 16 142 2,155 June.. 790 954 204 4,580 4,580 6,124 6,667 -911 309 72 -372 -70 -1,115 July. . 1,113 211 2,587 4,269 4,965 -2,381 761 35 -270 121 -207 -2,011 1 Before Nov. 1973 Bulletin, included matched sale-purchase trans- 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers’ acceptances. 2 Includes special certificates acquired when the Treasury borrows Note.—Sales, redemptions, and negative figures reduce System holddirectly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings; all other figures increase such holdings. 38; Aug. 1973, 351; Sept. 1973, 836. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st o e u rl n in d g s s A c u hi s l t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1970—Dec............... 257 154 * * 98 1 * 4 1971—Dec............... 18 3 3 * 2 1 8 1972—Dec............... 192 * * * 164 1 20 6 1973—May............. 4 * * * * 1 3 June............. 4 * * * * 1 3 July.............. 4 * * * * 1 3 Aug.............. 5 * * * 1 3 Sept.............. 4 * * * * 1 3 Oct............... 4 * * * 1 3 Nov.............. 4 * * * 1 3 Dec.............. 4 * * * 1 3 1974—Jan................ 1 * * * 1 Feb............... 32 * 20 « 10 1 Mar.............. 6 * 5 * * 1 Apr............... 6 * 5 * * 1 May............. 63 * 5 * 57 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ SEPTEMBER 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 Aug. 28 Aug. 21 Aug. 14 Aug. 7 July 31 Aug. 31 July 31 Aug. 31 Assets Gold certificate account.................................... 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash............................................................. 224 208 203 246 201 232 201 309 Loans: Member bank borrowings............... 3,434 3,113 2,915 2,889 3,589 4,321 3,589 2,842 Other..................................................... Acceptances: Bought outright.................................. 275 250 215 215 218 277 218 47 Held under repurchase agreements. 133 65 37 Federal agency obligations: Bought outright................................... 3,582 3,582 3,582 3,582 3,585 3,820 3,585 1,597 Held under repurchase agreements. 340 337 263 U.S. Govt, securities: Bought outright: Bills.............................. 34,775 38,829 37,582 35,900 35,464 38,492 35,464 34,585 Certificates—Special. Other.. Notes.......................... 39,582 39,582 39,781 39,781 39,781 39,581 39,781 37,374 Bonds......................... 3,057 3,057 2,858 2,858 2,858 3,058 2,858 3,428 Total bought outright....................... i,2 77,414 i 81,468 1,2 80,221 1,2 78,539 1,2 78,103 81,131 1,2 78,103 1 75,387 Held under repurchase agreements. 187 429 706 Total U.S. Govt, securities. 77,601 81,897 80,221 78,539 78,103 81,131 78,103 76,093 Total loans and securities..................... 85,365 89,244 86,933 85,225 85,495 89,549 85,495 80,879 Cash items in process of collection... * 7,466 * 7,953 8,083 8,216 7,966 * 6,022 7,966 6,236 Bank premises......................................... 245 245 245 243 243 245 243 210 Other assets: Denominated in foreign currencies. 183 219 10 30 8 183 5 All other............................................... 684 654 1,285 1,287 1,433 840 1,433 535 Total assets. * 106,207 *110,383 108,619 107,107 107,206 *108,931 107,206 98,877 Liabilities F.R. notes............................................... 66,433 66,318 66,573 66,356 65,771 66,322 65,771 60,338 Deposits: Member bank reserves.................... 027,069 *31,711 29,865 29,338 27,376 *30,213 27,376 28,955 U.S. Treasury—General account. 2,950 2,456 1,969 1,891 3,822 3,303 3,822 848 Foreign............................................... 324 303 248 261 330 372 330 259 Other: All other 3...................................... 723 738 929 675 1,169 654 1,169 760 Total deposits. * 31,066 * 35,208 33,011 32,165 32,697 * 34,542 32,697 30,822 Deferred availability cash items............ 5,099 5,567 5,894 5,556 5,335 4,535 5,335 4,631 Other liabilities and accrued dividends. 1,216 1,193 1,160 1,163 1,155 1,277 1,155 1,035 Total liabilities. *103,814 *108,286 106,638 105,240 104,958 * 106,676 104,958 96,826 Capital accounts Capital paid in............................................................... 882 881 881 880 880 881 880 827 Surplus............................................................................. 844 844 844 844 844 844 844 793 Other capital accounts................................................. 487 372 256 143 524 530 524 431 Total liabilities and capital accounts........................ *106,027 *110,383 108,619 107,107 107,206 *108,931 107,206 98,877 Contingent liability on acceptances purchased for foreign correspondents................................................. 1,182 1,171 1,131 1,064 1,023 1,202 1,023 522 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 30,464 30,721 30,766 30,718 30,090 30,796 30,090 28,043 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)....................... 70,813 70,717 70,614 70,444 70,346 70,832 70,346 64,616 Collateral held against notes outstanding: 2,380 2,275 2,275 2,225 2,225 2,380 2,225 2,415 U.S. Govt, securities....................................................... 69,575 69,650 69,600 69,600 69,600 69,575 69,600 63,690 71,955 71,925 71,875 71,825 71,825 71,955 71,825 66,105 i See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Aug. 28 Aug. 21 Aug. 14 Aug. 7 July 31 Aug. 31 July 31 Aug. 31 3,434 3,113 2,915 2,889 3,588 4,321 3,588 2,847 Within 15 days.................................................................. 3,400 2,898 2,838 2,733 3,476 4,226 3,476 2,749 34 215 77 156 112 95 112 98 91 days to 1 year.............................................................. Acceptances—Total............................................................. 408 315 215 215 218 277 218 84 Within 15 days.................................................................. 156 91 26 29 31 20 31 47 16 days to 90 days........................................................... 178 163 155 142 187 184 187 37 91 days to 1 year............................................................ 74 61 34 44 73 U.S. Government securities—Total................................. 77,601 81,897 80,221 78,539 78,103 81,131 78,103 76,093 Within 15 days*............................................................... 2,804 6,264 10,686 8,540 9,127 3,058 9,127 3,982 16 days to 90 days........................................................... 19,343 21,093 18,174 18,678 17,770 20,926 17,770 19,995 22,655 21,741 21,428 21,388 21,273 24,348 21,273 18,886 Over 1 year to 5 years.................................................... 21,024 21,024 19,967 19,967 19,967 21,024 19,967 22,170 Over 5 years to 10 years................................................. 9,893 9,893 7,954 7,954 7,954 9,893 7,954 9,358 Over 10 years.................................................................... 1,882 1,882 2,012 2,012 2,012 1,882 2,012 1,702 Federal agency obligations—Total.................................. 3,922 3,919 3,582 3,582 3,585 3,820 3,585 1,860 Within 15 days*............................................................... 371 365 12 3 31 3 293 16 days to 90 days........................................................... 99 65 81 93 85 99 85 7 91 days to 1 year............................................................. 465 441 441 441 449 513 449 379 Over 1 year to 5 years..................................................... 1,658 1,719 1,719 1,719 1,719 1,848 1,719 622 Over 5 years to 10 years................................................ 865 865 865 865 865 865 865 307 Over 10 years.................................................................... 464 464 464 464 464 464 464 252 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 S T M 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 S T M 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 1973—July................................. 17,224.5 7,381.4 4,282.4 9,843.1 5,560.8 102.6 247.5 111.7 71.3 55.8 Aug................................. 17,888.9 7,744.6 4,318.2 10,144.3 5,826.0 106.2 252.5 113.6 73.6 58.4 Sept................................. 17,918.7 8,025.3 4,195.7 9,893.3 5,697.6 107.4 266.4 111.6 72.4 57.5 Oct................................... 18,394.4 8,137.2 4,418.0 10,257.2 5,839.1 109.5 265.3 116.4 74.7 58.8 Nov................................. 19,049.5 8,437.9 4,519.8 10,611.6 6,091.7 113.2 274.9 118.6 77.1 61.2 Dec.................................. 18,641.3 8,097.7 4,462.8 10,543.6 6,080.8 110.2 269.8 115.0 75.8 60.6 1974—Jan................................... 18,815,7 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................................ 20,558.8 8,970.1 4,820.8 11,588.7 6,767.9 117.0 275.3 122.3 81.0 65.3 June................................ '20,450.0 9,065.7 ’4,768.0 '11,384.3 '6,616.3 116.8 279.9 '120.0 '79.8 '64.2 July................................. 20,907.8 9,140.4 4,900.8 11,767.4 6,866.5 119.7 282.1 123.8 82.7 66.9 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 □ SEPTEBER 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 Mz Mi Mi Ma 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—Au g 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—Jan.'.... 270.6 575.1 900.1 277.8 581.1 905.7 Feb. 273.1 581.2 908.3 270.2 578.6 905.5 Mar.r... 275.2 585.0 914.6 272.5 584.5 915.3 Apr.r.... 276.7 588.5 919.9 278.2 592.9 926.1 May r.... 277.8 591.0 923.1 273.1 589.1 922.2 June........ 279.6 596.2 929.2 277.6 595.7 930.3 July......... 280.0 598.9 933.0 279.2 597.8 933.4 Aug.». . . 280.8 602.2 936.6 277.4 598.2 932.3 Week ending— 1974—Aug. 7. 281.0 601.5 278.3 598.4 14. 281.2 602.7 278.9 599.9 21 p 281.0 602.4 277.4 598.2 28 p 279.9 601.8 274.5 595.6 Sept. 4 p 280.7 602.6 278.2 599.7 Note.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. M\\ Averages of daily figures for (1) demand deposits of commercial Mz: 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. 681 of the Sept. 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—Au g 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—Jan. r 61.9 208.7 65.5 304.6 370.1 325.0 61.6 216.2 156.4 56.9 66.1 303.3 369.4 324.5 8.1 Feb.r............. 62.7 210.4 66.6 308.1 374.7 327.1 61.9 208.3 151.1 54.6 65.9 308.4 374.3 326.9 6.6 Mar.r............ 63.3 211.9 67.7 309.8 377.5 329.6 62.7 209.8 152.4 54.7 67.0 312.0 279.1 330.8 6.4 Apr.r............. 63.9 212.8 75.4 311.8 387.1 331.4 63.5 214.7 155.8 56.2 72.4 314.7 387.1 333.2 6.0 May r............. 64.4 213.4 81.2 313.3 394.4 332.1 64.2 208.9 151.2 54.9 77.8 316.1 393.9 333.0 7.6 Juner............. 64.8 214.8 83.3 316.5 399.9 333.1 64.9 212.7 153.4 56.3 79.7 318.1 397.9 334.7 6.1 July................ 64.9 215.1 85.4 319.0 404.3 334.0 65.4 213.8 154.2 56.8 83.3 318.6 402.0 335.6 5.4 Aug.*5............ 65.6 215.2 84.7 321.4 406.1 334.4 65.8 211.6 152.2 56.5 87.4 320.8 408.2 334.1 3.9 Week ending— 1974—Aug. 7......... 65.4 215.6 84.9 320.6 405.5 66.0 212.3 153.0 56.5 86.0 320.1 406.1 4.3 14......... 65.6 215.6 84.7 321.5 406.2 66.2 212.8 153.0 57.0 86.9 321.0 407.9 3.7 21 p___ 65.6 215.4 84.6 321.4 406.0 65.9 211.6 152.1 56.6 87.8 320.8 408.6 4.0 28p.... 65.7 214.3 84.4 321.9 406.2 65.3 209.2 150.5 55.9 88.4 321.1 409.5 4.0 Sept. 4p.... 65.7 214.9 85.1 321.9 407.0 65.9 212.3 152.8 56.6 88.6 321.5 410.0 3.3 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above. mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 i 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 1 332.9 336.8 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 i 364.3 368.7 1972—Dec___ 31.41 30.36 31.13 29.05 402.0 241.4 154.5 6.1 406.8 240.7 160.1 6.1 406.4 411.2 1973—July....I 33.58 31.62 33.29 31.36 431.1 270.1 157.1 3.9 429.9 268.5 156.2 5.1 i 437.6 436.4 Aug---- 33.91 31.74 33.73 32.04 436.7 275.0 157.0 4.8 433.7 276.6 154.0 3.1 1 443.8 440.8 Sept___i 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 1 446.5 446.5 Nov....| 34.86 33.46 34.62 32.71 440.4 277.1 157.5 5.8 438.2 276.6 158.3 3.2 ! 447.5 445.3 Dec.. . .: 35.10 33.81 34.80 32.91 442.2 279.0 158.3 4.9 447.5 278.5 164.0 5.0 ; 449.6 454.9 1974—Jan........ 35.85 34.80 35.69 32.80 446.8 283.2 157.4 6.2 453.0 283.1 163.4 6.5 454.3 460.5 Feb....... 35.11 33.92 34.92 32.79 447.1 286.1 157.9 3.0 447.1 285.7 156.3 5.1 * 454.8 454.8 Mar.... 34.95 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. . . 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.... 36.73 33.73 36.53 34.80 472.9 308.6 160.6 3.7 470.0 306.4 158.9 4.7 483.1 480.3 July.... 37.42 34.12 37.26 35.05 475.7 312.3 160.9 2.5 474.3 310.1 160.0 4.1 486.9 485.5 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in­ 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as “the ad­ Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy.” Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. Note.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of the Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments1 Total 1 loans Plus Treas­ Other4 ments 1 Total 1 loans Plus Treas­ Other4 sold2 Total loans ury sold2 Total loans ury sold2 sold2 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—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. 30*. . . 638.0 452.3 456.7 157.8 160.4 54.4 131.3 637.6 448.3 452.7 156.1 158.7 58.7 130.6 Feb. 27*. . . 645.7 457.1 462.1 158.9 161.6 56.2 132.4 640.4 451.5 456.4 157.3 160.0 57.5 131.5 Mar. 27*. . . 654.9 466.3 471.2 164.4 167.2 56.2 132.4 651.4 461.1 466.0 164.2 167.0 57.3 133.0 Apr. 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*5... 673.9 481.3 486.7 173.9 176.8 57.1 135.5 677.9 488.5 493.9 176.5 179.4 52.8 136.6 July 31*.... 681.3 490.4 495.8 176.8 179.7 55.4 135.5 680.1 492.8 498.2 177.2 180.1 51.7 135.7 Aug. 28*6 . . 686.7 496.4 501.7 179.5 182.8 54.7 135.6 682.2 495.5 500.8 177.9 181.2 51.4 135.3 1 Adjusted to exclude domestic commercial interbank loans. 6 Beginning Aug. 28, 1974, loans sold outright to bank affiliates reflect 2 Loans sold are those sold outright by commercial banks to own sub­ a newly issued definition of the group of affiliates included as well as a sidiaries, foreign branches, holding companies, and other affiliates. somewhat different group of reporting banks. Total loans were unchanged 3 Beginning June 30, 1972, commercial and industrial loans were re­ on the new basis; comerical and industrial loans were increased by $400 duced by about $400 million as a result of loan reclassifications at one million. large bank. 4 Beginning June 30, 1971, Farmers Home Administration insured notes Note.—Total loans and investments: For monthly data, Jan. 1959totaling approximately $700 million are included in “Other securities” June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, rather than in “Loans.” Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current 5 Beginning June 30, 1974, data revised to include one large mutual seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and savings bank that merged with a nonmember commercial bank. Total the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: loans and investments were increased by about $600 million of which For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. $500 million were in loans and $100 million in “other securities.” A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for last Wednesday of month except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS □ SEPTEMBER 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 Interbank 3 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 series6 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, J 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—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 58,730 ,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 57,500 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 57,260 ,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 56,060 ,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 53,630 560114,585 850,625 678,265 34,070 8,200 5,880 237,265 392,850 69,560 59,870 14,290 June 26* 707.670 519,290 52,340 040105,280 852.600 679,100 30,480 8,860 8.070 237,350 394,340 68,730 60,140 14,338 July 31*. 713.280 525,940 51,680 660106,830 863,770 689,300 32.720 9,530 4,250 242,430 400,370 67,440 60,990 14.368 Aug. 28*. 713,780 527,060 51,440 ,280 99,490 855,840 682,010 29,880 9,820 3,940 234,180 404,190 66,320l 60,940 14.368 Members of F.R. System: 1941—Dec. 31 .. 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4| 5,2 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 i3o; 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—Aug. 29.. 494,200 365,951 38,233 90,016 78,475 600,202 478,273 24,972 5.911 2,701 172,082 272,607 49,283^ 42,807 5,713 Sept. 26.. 498,322 368,842 38,372 91,108 85,802 611,359 486,975 26,182 6,480 6,740 175,016 272,557 52,485| 42,972 5,718 Oct. 31.. 504,120 371,866 39,375 92,879 96,251 628,710 499,110 31.142 6,112 4,601 185,324*•271,931 56,772j 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 July 31.. 552.619 418,065 35,860 98,694 91,430 680,511 533,807 31,153 8,598 3,180 186,360 304,516 63,042 46,907 5.767 Aug. 28*. 552,831 418,713 35,878 98,240 84,917 673,263 527,560 28,450 8,887 2,958 179,453 307,812 61,765 46,815 5.767 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31.. . 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 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 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 1974—Apr. 24... 693,489 503,653 189,:837 98,997 826,736 664,070 30,539 6,634 5,913 234,435 386,550 66,160 59,757 14,043 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 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 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 1974—Apr. 24... 404,972 299,182 105,790 59,806 486,163 384,314 16,492 3,997 3,636j 135,188| 225,000i 45,627 34,026 4,688 For notes see p. A-l 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 o COMMERCIAL BANKS A 17 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ a i n n d su F ra D nc IC e Total Loa l ns T U re .S as . ­ Oth 2 er assets3 c b a i a a l p i n c t i d i ­ t e a s l Total3 m D a e n ­ d Time Demand Tim 5 e r i o n w gs ­ c c a o a p u c i n ­ ta ts l ba b o n e f k r s 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 25,472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1971—Dec. 31... 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 1972—Dec. 31... 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—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 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 1974—Apr. 24... 132,211 100,876 31,335 27,008 166,929 127,944 12,918 2,084 1,114 44,173 67,655 18,210 12,145 1,071 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 I960—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 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—Dec. 31... 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—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 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 1974—Apr. 24... 156,305 103,594 52,711 12,183 173,645 151,812 1,130 553 1,163 55,072 93.894 2,322 13,587 8,284 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 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 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 16,562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—June 30... 145,386 96,036 16,797 32,554 15,381 165,657 142,608 1,736 712 2,267 54,514 83,379 2,770 12,643 8,341 Dec. 31... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 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 INSURED COMMERCIAL BANKS □ SEPTEMBER 1974 ASSETS BY CLASS OF BANK, APRIL 24, 1974 (Amounts in millions of dollars) Member banks1 Insured commercial Large banks Non­ banks member Total All other banks1 New York City of Other City Chicago large Cash bank balances, items in process..................... 98,997 86 814 23,527 3,984 31,456 27,847 12,183 Currency and coin.................................................. 9,913 7,516 589 157 2,413 4,358 2,397 Reserves with Federal Reserve Banks.................. 29,848 29,848 6,515 1,859 10,521 10,954 Demand balances with banks in United States. 23,711 15,647 5,741 297 3,023 6,586 8,064 Other balances with banks in United States. . . 2,056 I,323 57 5 738 524 733 Balances with banks in foreign countries........... 822 704 196 54 363 91 119 Cash items in process of collection..................... 32,646 31,776 10,429 1,613 14,400 5,334 870 Total securities held—Book value........................... 189,837 137,126 15,221 5,322 45,992 70,592 52,711 Bank investment portfolios................ 184,037 131,387 13,460 4,751 42,919 70,258 52,650 U.S. Treasury.................................... 54,236 37,728 4.221 1,153 12,088 20,265 16,508 Other U.S. Government agencies. 28,568 18,297 1,333 621 5,063 11,280 10,271 States and political subdivisions. . 95,554 71,288 7,197 2,783 24,610 36,697 24,266 All other............................................. 5,679 4,075 708 193 1,157 2,016 1,605 Trading-account securities......................................... 5,799 5,738 1,761 571 3,073 334 61 Federal funds sold and securities resale agreements. 33,019 23,831 2.221 1,230 9,949 10,432 9,187 Other loans......................................................................... 470,634 376,227 71,145 21,841 143,675 139,566 94,406 Total loans and securities.............................................. 693,489 537,183 88,586 28,392 199,615 220,590 156,305 Fixed assets—Buildings, furniture, real estate. 13,715 10,549 1,051 417 4,303 4,778 3,167 Investments in subsidaries not consolidated... 1,523 1,505 684 115 652 54 18 Customer acceptances outstanding................... 5,277 5,041 3,155 294 1,392 200 236 Other assets.............................................................. 13,735 II,999 3,163 596 5,360 2,879 1,736 Total assets. 826,736 653,091 120,166 33,798 242,778 256,349 173,645 1 Member banks exclude a noninsured trust company that is a member Note.—Data include consolidated reports, including figures for all of the Federal Reserve System, and two national banks outside the bank-premises subsidiaries and other significant majority-owned domestic continental United States. subsidiaries. Figures for individual categories of securities are reported 2 See table (and notes), Deposits Accumulated for Payment of Personal on a gross basis—that is, before deduction of 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

SEPTEMBER 1974 □ INSURED COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, APRIL 24, 1974 (Amounts in millions of dollars) Member banks1 Insured Non- Account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large Demand deposits........................................................................................ 270,887 213,522 46,507 8,500 74,314 84,200 57,365 Mutual savings banks............................................................................ 1,036 963 343 1 172 447 74 Other individuals, partnerships, and corporations......................... 207,861 158,832 25,198 6,424 57,258 69,951 49,030 U.S. Government.................................................................................... 5,913 4,750 661 164 2,131 1,794 1,163 States and political subdivisions......................................................... 15,431 10,929 436 211 3,294 6,988 4,503 Foreign governments, central banks, etc........................................... 1,504 1,483 1,243 21 210 8 21 Commercial banks in United States................................................... 24,560 23,739 11,719 1,371 7,811 2,838 821 Banks in foreign countries.................................................................... 4,943 4,708 3,421 128 1,048 111 236 Certified and officers’ checks, etc........................................................ 9,637 8,118 3,485 180 2,390 2,063 1,519 Time and savings deposits........................................................................ 393,184 298,736 40,788 14,810 108,725 134,414 94,447 Savings deposits...................................................................................... 130,762 95,709 6,201 2,052 33,679 53,777 35,053 478 346 62 284 131 Mutual savings banks............................................................................ 509 498 259 49 164 25 12 Other individuals, partnerships, and corporations......................... 197,527 151,586 24,183 9,668 55,180 62,555 45,941 U.S. Government................................................................................... 459 335 32 25 118 159 125 States and political subdivisions......................................................... 49,011 36,515 2,168 1,623 15,484 17,241 12,496 Foreign governments, central banks, etc.......................................... 8,311 8,163 4,437 865 2,819 42 148 5,806 5,304 3,371 496 1,137 300 502 Banks in foreign countries................................................................... 319 280 137 31 82 30 39 Total deposits.............................................................................................. 664,070 512,258 87,295 23,310 183,039 218,614 151,812 Federal funds purchased and securities sold under agreements to repurchase................................................................................................ 57,316 55,343 12,303 6,379 28,100 8,561 1,973 Other liabilities for borrowed money.................................................... 8,844 8,495 3,183 113 3,919 1,279 350 Mortgage indebtedness.............................................................................. 868 686 80 5 439 163 181 Bank acceptances outstanding................................................................. 5,401 5,165 3,259 301 1,402 203 236 Other liabilities............................................................................................ 22,541 18,465 3,574 1,232 7,366 6,292 4,075 Total liabilities............................................................................................ 759,040 600,412 109,694 31,340 224,266 235,113 158,628 Minority interest in consolided subsidiaries........................................ 4 2 2 3 Total reserves on loans/securities........................................................... 7,934 6,507 1,445 426 2,412 2,223 1,427 7,646 6,317 1,444 426 2,352 2,095 1,329 Other reserves on loans........................................................................ 122 80 1 9 70 42 Reserves on securities............................................................................ 166 110 52 58 57 Total capital accounts............................................................................... 59,757 46,170 9,027 2,033 16,100 19,011 13,587 Capital notes and debentures.............................................................. 4,200 3,441 787 57 1,680 918 758 55,557 42,729 8,240 1,976 14,420 18,093 12,828 Preferred stock.................................................................................... 61 43 18 11 14 18 Common stock.................................................................................... 14,257 10,821 2,160 562 3,536 4,562 3,436 24,033 18,547 3,466 1,135 6,689 7,258 5,485 16,376 12,703 2,592 236 3,932 5,944 3,674 831 615 4 42 252 316 216 Total liabilities, reserves, minority interest, capital account........... 826,736 653,091 120,166 33,798 242,778 256,349 173,645 Demand deposits adjusted3..................................................................... 207,767 153,256 23,697 5,353 49,972 74,234 54,511 Selected ratios: Percentage of total assets Cash and balances with other banks................................................. 12.0 13.3 19.6 11.8 13.0 10.9 7.0 Total securities held............................................................................... 23.0 21.0 12.7 15.7 18.9 27.5 30.3 6.6 5.8 3.5 3.4 5.0 7.9 9.5 States and political subdivisions.................................................... 11.6 10.9 6.0 8.2 10.1 14.3 14.0 All other trading account securities.............................................. 4.1 3.4 1.7 2.4 2.6 5.2 6.8 Trading account securities . ............................... .7 .9 1.5 1.7 1.3 . 1 Other loans and Federal funds sold.................................................. 60.9 61.3 61.1 68.3 63.3 58.5 59.6 4,1 4.5 6.7 4.2 4.8 3.1 3.0 83.9 82.3 73.7 84.0 82.2 86.1 90.0 Reserves for loans and securities........................................................ 1.0 1.0 1.2 1.3 1.0 .9 .8 Equity capital—Total............................................................................ 6.7 6.5 6.9 5.8 5.9 7.1 7.4 Total capital accounts........................................................................... 7.2 7.1 7.5 6.0 6.6 7.4 7.8 Number of Banks....................................................................................... 14,043 5,759 13 9 156 5,581 8,284 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ SEPTEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1973 Aug. 8................ 352,536 15,352 12,035 2,587 225 505 259,050 107,961 3,343 1,164 5,291 189 3,008 9,476 16,915 15................ 355,596 15,375 12,019 2,839 233 284 260,493 108,035 3,360 1,482 5,248 188 3,010 9,696 17,032 22................ 350,388 13,354 11,556 1,369 160 269 258,352 107,785 3,352 830 5,002 181 2,971 8,928 17,020 29................ 350,651 13,404 11,781 1,215 131 277 258,797 106,789 3,334 1,311 5,197 181 2,951 8,853 17,019 1974 July 3................ 394,698 16,313 14,335 1,039 495 444 294,760 125,609 3,807 412 4,447 122 2,698 9,997 21,423 10................ 394,012 16,025 14,201 918 482 424 294,992 125,827 3,810 456 4,001 120 2,685 10,100 21,648 17................ 393,421 14,924 13,040 1,071 402 411 295,943 126,553 3,845 487 3,889 108 2,682 10,232 21,636 24............... 389,989 12,800 10,971 935 406 488 294,573 126,132 3,821 415 4,011 111 2,674 9,845 21,460 31............... 397,771 16,527 13,418 1,881 581 647 297,957 126,151 3,846 1,720 4,699 113 2,687 10,211 21,670 Aug. 7*............. 397,759 16,646 13,558 1,962 437 689 297,465 126,368 3,846 1,451 4,381 111 2,699 10,205 21,735 14*............. 395,339 15,466 13,133 1,229 450 674 296,440 126,459 3,836 1,055 4,277 109 2,682 9,986 21,754 21*............. 393,550 14,686 12,368 1,334 401 583 296,046 126,796 3,865 634 3,786 104 2,675 9,934 21,829 28*............. 396,635 15,879 12,072 2,599 418 790 297,698 126,690 3,849 2,111 3,908 102 2,689 9,906 21,891 New York City 1973 Aug. 8............... 75,245 2,289 2,191 96 2 60,771 31,081 78 1,085 3,011 43 693 2,877 5,688 15............... 76,451 1,878 1,777 54 15 32 61,317 30,958 79 1,367 3,067 44 686 3,077 5,643 22............... 74,051 1,359 1,246 66 47 59,703 30,879 76 727 2,901 43 682 2,672 5,657 29............... 74,329 1,447 1,359 51 37 60,125 30,336 75 1,200 3,103 41 681 2,631 5,678 1974 July 3............... 89,065 2,269 2,232 8 29 72,342 37,587 136 326 2,586 23 560 3,507 7,933 10............... 88,265 1,862 1,793 5 31 33 72,191 37,614 128 393 2,192 23 557 3,523 8,068 17............... 89,006 2,545 2,504 9 32 72,499 37,845 140 410 2,207 23 558 3,586 8,066 24............... 88,023 1,869 1,776 56 37 72,006 37,606 133 354 2,259 28 557 3,348 8,066 31............... 92,098 2,807 2,716 55 36 74,683 37,525 135 1,611 2,949 30 557 3,507 8,140 Aug. Ip............. 90,799 2,019 1,903 55 61 74,148 37,601 140 1,322 2,724 30 563 3,520 8,246 14*............. 89,600 1,730 1,558 57 115 73,102 37,625 138 909 2,660 29 556 3,430 8,267 21*............. 89,434 1,895 1,649 165 1 80 72,525 37,682 137 567 2,223 24 557 3,415 8,292 28*............. 91,238 1,894 1,607 208 79 74,440 37,787 132 2,016 2,414 24 566 3,346 8,372 Outside New York City 1973 Aug. 8............... 277,291 13,063 9,844 2,491 225 503 198,279 76,880i 3,265 79 2,280 146i 2,315i 6,599 11,227 15............... 279,145 13,497 10,242 2,785 218 252: 199,176 77,077 3,281 115 2,181 144• 2,324 6,619 11,389 22............... 276,337 11,995 10,310 1,303 160 222: 198,649 76,906i 3,276 103 2,101 138 2,289 6,256 11,363 29............... 276,322 11,957 10,422 1,164 131 240• 198,672 76,453 3,259 111 2,094 140i 2,270> 6,222 11,341 1974 July 3............... 305,633 14,044 12,103 1,031 495 415! 222,418 88,022: 3,671 86 1,861 99' 2,138 6,490i 13,490 10............... 305,747 14,163 12,408 913 451 391 222,801 88,213l 3,6821 63 1,809 91r 2,128 6,577' 13,580 17............... 304,415 12,379 10,536 1,062 402: 379> 223,444 88,708I 3,705; 77 1,682 85; 2,124 6,646i 13,570 24............... 301,966 10,931 9,195! 879» 406 451 222,567 88,526i 3,688: 61 1,752 83 2,117' 6,497 13,394 31.............. 305,673 13,720 10,702 1,826i 581 611 223,274 88,626i 3,711 109 1,750i 83 2,130l 6,704 13,530 Aug. 7*.......... 306,960 14,62*3 11,655i 1,90'' 431r 628I 223,317 88,761r 3,706; 129 1,657 81 2,136i 6,685: 13,489 14*.......... 305,739 13,736 11,555i 1,172> 45C) 55S> 223,338 88,834I- 3,698I 146i 1,617 8C» 2,126» 6,556 13,487 21*........... 304,116 12,791 10,719» 1,16S> 40C) 50:5 223,521 89,1141- 3,728; 67 1,563 8CI 2,118 6,519 13,537 28*.......... 305,397 13,985 10,465> 2,391[ 418t 711I 223,258 88,903I 3,711' 95i 1,494 78i 2,123 6,560i 13,519 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 yr. 5 yrs. 5 yrs. tic Large banks— Total 1973 -51,250 3,212 5,055 31,149 1,257 19,780 22,149 2,902 4,094 12,548 2,605 ...........................Aug. 8 51,613 3,206 5,017 31,265 1,254 20,087 23,016 4,116 3,858 12,352 2,690 ......................................15 51,840 3,356 4,854 31,386 1,236 19,611 22,462 3,753 3,854 12,211 2,644 ......................................22 52,037 3,587 4,966 31,526 1,254 19,792 22,098 3,506 3,835 12,134 2,623 ......................................29 1974 58,317 4,043 6,645 34,069 2,040 21,131 20,872 1,749 3,590 11,722 3,811 ...........................July 3 58,420 4,099 6,973 34,091 2,117 20,645 20,353 1,485 3,451 11,604 3,813 ......................................10 58,605 4,184 6,848 34,143 2,022 20,709 20,186 1,469 3,423 11,539 3,755 ......................................17 58,728 4,097 6,859 34,218 1,837 20,365 19,944 1,306 3,436 11,437 3,765 ......................................24 58,908 3,983 6,979 34,345 1,868 20,777 20,915 2,047 3,558 11,561 3,749 ......................................31 58,886 3,924 6,877 34,419 2,075 20,488 21,284 2,458 3,538 11,519 3,769 ...........................Aug. 7* 59,154 3,900 6,725 34,468 1,875 20,160 21,429 2,545 3,644 11,447 3,793 ......................................14* 59,341 3,808 6,808 34,508 1,895 20,063 20,976 2,112 3,415 11,191 4,258 ......................................21* 59,378 3,773 6,888 34,609 1,918 19,986 21,304 2,465 3,419 11,097 4,323 ......................................28* New York City 1973 5,682 1,163 2,267 2,381 613 4,109 3,460 805 649 1,523 483 ...........................Aug. 8 5,767 1,169 2,203 2,393 598 4,266 3,995 1,175 728 1,569 523 ......................................15 5,790 1,237 2,035 2,401 599 4,004 4,017 1,274 632 1,587 524 ......................................22 5,832 1,279 2,141 2,398 621 4,109 3,856 1,100 618 1,633 505 ......................................29 1974 6,879 1,663 3,100 2,452 793 4,797 3,506 13 378 1,857 1,258 ...........................July 3 6,913 1,659 3,279 2,449 788 4,605 3,288 75 227 1,726 1,260 ......................................10 6,965 1,700 3,156 2,456 823 4,564 3,204 58 250 1,690 1,206 ......................................17 7,003 1,647 3,100 2,468 810 4,627 3,V96 84 205 1,591 1,216 ......................................24 7,053 1,626 3,257 2,486 811 4,996 3,770 369 426 1,767 1,208 ......................................31 7,073 1,581 3,172 2,499 933 4,744 3,823 446 419 1,736 1,222 ...........................Aug. 7* 7,125 1,630 2,993 2,512 870 4,358 4,093 644 473 1,754 1,222 ......................................14* 7,186 1,571 3,078 2,536 860 4,397 4,291 400 402 1,912 1,577 ......................................21* 7,213 1,586 3,186 2,555 885 4,358 4,264 364 356 1,895 1,649 ......................................28* Outside New York City 1973 45,568 2,049 2,788 28,768 644 15,671 18,689 2,097 3,445 11,025 2,122 ...........................Aug. 8 45,846 2,037 2,814 28,872 656 15,821 19,021 2,941 3,130 10,783 2,167 ......................................15 46,050 2,119 2,819 28,985 637 15,607 18,445 2,479 3,222 10,624 2,120 ......................................22 46,205 2,308 2,825 29,128 633 15,683 18,242 2,406 3,217 10,501 2,118 ......................................29 1974 51,438 2,380 3,545 31,617 1,247 16,334 17,366 1,736 3,212 9,865 2,553 ...........................July 3 51,507 2,440 3,694 31,642 1,329 16,040 17,065 1,410 3,224 9,878 2,553 ......................................10 51,640 2,484 3,692 31,687 1,199 16,145 16,982 1,411 3,173 9,849 2,549 ......................................17 51,725 2,450 3,759 31,750 1,027 15,738 16,848 1,222 3,231 9,846 2,549 ......................................24 51,855 2,357 3,722 31,859 1,057 15,781 17,145 1,678 3,132 9,794 2,541 ......................................31 51,813 2,343 3,705 31,920 1,142 15,744 17,461 2,012 3,119 9,783 2,547 ...........................Aug. 7* 52,029 2,270 3,732 31,956 1,005 15,802 17,336 1,901 3,171 9,693 2,571 ......................................14* 52,155 2,237 3,730 31,972 1,035 15,666 16,685 1,712 3,013 9,279 2,681 ......................................21* 52,165 2,187 3,702 32,054 1,033 15,628 17,040 2,101 3,063 9,202 2,674 ......................................28* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ SEPTEMBER 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 States corp. stocks, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants 3 other partici­ others pation4 Large banks— Total 1973 Aug. 8............................... 55,985 7,944 38,022 1,958 8,061 27,508 18,452 3,954 10,423 1,308 20,774 434,955 15............................... 56,712 8,103 38,456 1,924 8,229 30,343 20,707 4,085 9,982 1.307 21,162 443,182 22............................... 56,220 7,781 38,329 1,948 8,162 26,723 21,592 4,184 10,220 1,310 20,182 434,599 29............................... 56,352 7,718 38,163 2,015 8,456 26,192 21,277 4,395 8,842 1.308 20,923 433,588 1974 July 3............................... 62.753 7,255 41,206 2,512 11,780 36,811 23,874 3,911 10,045 1.609 26,452 497,400 10............................... 62,642 7,048 41,436 2,386 11,772 31,247 23,899 4,558 10,050 1,607 26,504 491,877 17............................... 62,368 6,968 41,355 2,378 11,667 33,181 25,660 4,516 11,157 1,602 26,104 495,641 24............................... 62,672 7,060 41,421 2,420 11,771 31,874 26,683 4,592 10,257 1,573 26,875 491,843 31............................... 62,372 6,978 41,145 2,494 11,755 35,190 20,314 4,490 11,470 1,594 28,795 499,624 Aug. 7*............................. 62,364 6,874 41,354 2,516 11,620 29,836 23,040 4,143 10,020 1,596 28,514 494,908 14*............................. 62,004 6,770 41,152 2,542 11,540 31,066 23,656 4,474 9,909 1,598 28,341 494,383 21*............................. 61,842 6,562 41,192 2,539 11,549 29,080 24,950 4,502 9,654 1.610 27,587 490,933 28*............................. 61.754 6,514 41,041 2,491 11,708 30,645 21,134 4,643 10,385 1,614 28,296 493,352 New York City 1973 Aug. 8............................. 8,725 2,173 4,574 605 1,373 9,568 5,185 486 4,972 624 6,819 102,899 15............................. 9,261 2,359 4,876 570 1.456 8,999 5,428 498 4,609 625 7,389 103,999 22............................. 8,972 2,243 4,793 575 1,361 8,317 6,585 488 5,076 627 6,770 101,914 29............................. 8,901 2,202 4,619 624 1.456 8,698 5,867 511 4,011 625 7,039 101,080 1974 July 3............................. 10,948 2,246 5.844 631 2,227 12,100 6,816 457 4,178 726 8,202 121,544 10............................. 10,924 2,155 5,911 546 2,312 10,166 7,846 523 3,881 710 8,473 119,864 17............................. 10,758 2,128 5.844 543 2,243 10,879 7,366 508 5,064 711 8,373 121,907 24............................. 11,052 2,354 5,892 545 2,261 12,787 8,322 504 4,715 710 8,876 123,937 31............................. 10,838 2,272 5,743 551 2,272 13,547 6,433 506 5,522 710 9,506 128,322 Aug. 7*........................... 10,809 2,183 5,874 544 2,208 10,133 7,823 490 4,267 710 9,171 123,393 14*........................... 10,675 2,143 5,762 546 2,224 10,294 7,288 499 4,346 715 9,479 122,221 21*........................... 10,723 2,059 5,900 547 2,217 9,037 7,877 483 3,994 723 8,900 120,448 28*........................... 10,640 2,055 5,766 540 2,279 10,861 5,540 508 4,573 728 8,994 122,442 Outside New York City 1973 Aug. 8. 47,260 5,771 33,448 1.353 6, 17,940 13,267 3,468 5,451 684 13,955 332,056 15. 47.451 5,744 33,580 1.354 6,773 21,344 15,279 3,587 5,373 682 13,773 339,183 22. 47,248 5,538 33,536 1,373 6,801 18,406 15,007 3,696 5,144 683 13,412 332,685 29. 47.451 5,516 33,544 1,391 7,000 17,494 15,410 3,884 4,831 13,884 332,508 1974 July 51,805 5,009 35,362 1,881 9,553 24,711 17,058 3,454 5,867 883 18,250 375,856 51,718 4,893 35,525 1,840 9,460 21,081 16,053 4,035 6,169 897 18,031 372,013 51,610 4,840 35,511 1,835 9,424 22,302 18,294 4,008 6,093 891 17,731 373,734 51,620 4.706 35,529 1,875 9,510 19,087 18,361 4. 5,542 863 17,999 367,906 51,534 4.706 35,402 1,943 9,483 21,643 13,881 3,984 5,948 884 19,289 371,302 Aug. 7*., 51,555 4,691 35,480 1,972 9,412 19,703 15,217 3,653 5,753 19,343 371,515 14*., 51,329 4,627 35,390 1,996 9,316 20,772 16,368 3,975 5,563 883 18,862 372,162 21*., 51,119 4,503 35,292 1,992 9,332 20,043 17,073 4,019 5,660 887 18,687 370,485 28*. 51,114 4,459 35,275 1,951 9,429 19,784 15,594 4,135 5,812 886 19,302 370,910 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1973 147,749 105,996 6,060 1,404 22,495 874 857 3,761 6,302 187,307 57,123 94,414 22,193 4,954 8,118 ...............Aug. 8 154,097 112,537 6,717 2,222 21,482 824 845 3,534 5,936 188,824 56,809 96,021 22,208 5,256 8,060 ..........................15 144,370 106,340 5,676 1,820 19,723 792 820 3,556 5,643 190,039 56,612 96,909 22,544 5,434 8,102 ..........................22 143,546 105,787 5,697 1,816 19,072 728 893 3,422 6,131 190,776 56,286 97,902 22,679 5.466 8,036 ..........................29 1974 164,141 114,623 6,409 5,501 23,426 935 1,246 4,970 7,031 211,533 58,115 112,245 24,232 7,076 8,933 ...............July 3 157,407 112,969 5,972 2,546 22,380 859 1,193 5,469 6,019 211,532 58,064 112,010 24,404 7,047 9,016 ..........................10 158,189 114,378 5,893 1,686 22,355 745 1,269 5,143 6,720 213,583 57,989 113,649 24,415 7,389 9,001 ..........................17 153,933 111,755 5,667 1,740 20,734 637 1,104 5,088 7,208 215,440 57,855 114,851 24,577 7,530 9,402 ..........................24 161,787 115,110 6,273 1,831 23,117 733 1,875 5,431 7,417 216,294 57,615 115,729 24,451 7,338 9,898 ..........................31 152,368 109,934 5,793 1,408 21,389 712 1,378 5,358 6,396 217,093 57,553 116,449 24,311 7,198 10,115 ...............Aug. 7* 153,828 113,213 5,960 1,143 20,692 651 1,116 5,247 5,806 217,998 57,420 117,368 24,249 7,196 10,220 .........................14* 150,969 110,239 5,555 2,847 20,471 582 1,171 4,824 5,280 218,809 57,280 118,024 24,316 7,265 10,313 ..........................21* 153,790 112,184 5,591 1,830 21,332 615 1,267 4,746 6,225 219,251 57,120 118,763 .24,255 7,144 10,280 ..........................28* New York City 1973 40,932 22,139 441 128 11,588 479 675 2,758 2,724 34,725 5,119 20,239 2,027 3,280 3,991 .......................... 8 41,860 24,665 570 466 10,350 429 678 2,553 2,149 35,043 5,075 20,335 2,128 3,466 3,978 ..........................15 38,418 22,545 401 230 9,418 448 657 2,543 2,176 34,817 5,036 19,945 2,222 3,511 4,044 ..........................22 38,341 22,452 327 295 8,933 383 728 2,409 2,814 35,150 4,991 20,405 2,148 3,517 4,037 ..........................29 1974 45,638 24,872 410 923 11,098 558 1,042 3,695 3,040 42,581 5,067 25,314 1,906 4,663 5,151 ...............July 3 43,744 24,223 349 470 10,773 492 971 4,081 2,385 42,687 5,062 25,078 1,970 4,705 5,345 ..........................10 44,487 24,449 297 176 11,318 399 1,048 3,864 2,936 43,413 5,056 25.420 2,106 4,926 5,317 ..........................17 45,433 25,370 347 229 10,563 343 908 3,802 3,871 44,401 5,039 25,945 2,087 4,947 5,714 ..........................24 48,889 26,215 461 369 11,816 399 1,645 4,149 3,835 44,686 5,006 26,091 2,069 4,667 6,155 ..........................31 42,875 23,601 305 138 10,657 363 1 3,949 2,741 45,012 4,991 26.421 1,983 4,481 6,213 ...............Aug. 7* 42,537 24,558 440 125 9,794 337 3,977 2,410 45,448 4,986 26,950 1,888 4,412 6,221 ..........................14* 40,818 23,471 314 562 9,649 292 3,570 2,080 45,500 4,968 26,953 1,939 4,392 6,244 ..........................21* 44,151 25,167 297 345 10,498 321 3,506 3,023 45,751 4,935 27,563 1,840 4,266 6,128 ..........................28* Outside New York City 1973 106,817 83,857 5,619 1,276 10,907 395 182 1,003 3,578 152,582 52,004 74,175 20,166 1,674 4,127 ...............Aug. 8 112,237 87,872 6,147 1,756 11,132 395 167 981 3,787 153,781 51,734 75,686 20,080 1,790 4,082 ..........................15 105,952 83,795 5,275 1,590 10,305 344 163 1.013 3,467 155,222 51,576 76,964 20,322 1,923 4,058 ..........................22 105,205 83,335 5,370 1,521 10,139 345 165 1.013 3,317 155,626 51,295 77,497 20,531 1,949 3,999 ..........................29 1974 118,503 89,751 5,999 4,578 12,328 377 204 1,275 168,952 53,048 86.931 22,326 2,413 3,782 ...............July 3 113,663 88,746 5,623 2,076 11,607 367 222 1,388 168,845 53,002 86.932 22,434 2,342 3,671 ..........................10 113,702 89,929 5,596 1.510 11,037 346 221 1,279 170,170 52,933 88,229 22,309 2,463 3,684 ..........................17 108,500 86,385 5,320 1.511 10,171 294 196 1,286 171,039 52,816 88,906 22,490 2,583 3,687 ..........................24 112,898 88,895 5,812 1.462 11,301 334 230 1,282 171,608 52,609 89,638 22,382 2,671 3,743 ..........................31 109,493 86,333 5,488 1,270 10,732 349 257 1,409 3,655 172,081 52,562 90,028 22,328 2,717 3,902 ...............Aug. 7* 111,291 88,655 5,520 1,018 10,898 314 220 1,270 3,396 172,550 52,434 90,418 22,361 2,784 3,999 ..........................14* 110,151 86,768 5,241 2,285 10,822 290 291 1,254 3,200 173,309 52,312 91,071 22,377 2,873 4,069 ..........................21* 109,639 87,017 5,294 1,485 10,834 294 273 1,240 3,202 173,500 52,185 91,200 22,415 2,878 4,152 .........................28* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ SEPTEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits 11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed i o Total to to foreign justed 9 IPC’s others bran­ ches Large banks— Total 1973 Aug. 8........................ 40,418 826 4.556 18,624 4.533 30,877 259,155 337,289 96,342 66,313 45,099 21,214 2,276 15........................ 39,747 1,959 4,715 18,426 4.533 30,816 260,643 340,371 100,050 67,927 46,389 21,538 1,900 22........................ 38,374 2,282 5,286 18,858 4,536 30,789 256,794 335,476 96,104 68,851 47,054 21,797 2,440 29........................ 36,735 2,546 5.745 18,840 4,554 30,781 256,833 335,283 96,466 69,696 48,023 21,673 2,802 1974 July 3........................ 53,465 2,361 6,100 21,447 5,040 33,251 292,695 376,320 98,403 80,1 56,267 24,581 3,177 10........................ 55,108 1,745 6,086 21,669 5,033 33,235 292,717 375,712 101,234 81,129 56,229 24,900 2,804 17........................ 52,608 3,417 6,119 23,522 5,035 33,106 293,643 376,197 100,967 82,973 57,613 25,360 4,583 24........................ 49,449 4.780 6,137 23,909 5,030 33,103 292,305 394,921 99,585 84,791 58,664 26,127 4,711 31........................ 50.283 2.781 5,869 24,082 5.068 33,398 297,083 380,370 101,649 85,495 59,197 26,298 3,314 Aug. 7*..................... 54,516 2,286 6,112 24,019 5,066 33,386 296,629 380,277 99,735 85,969 59,710 26,259 3,499 14........................ 52,459 2,268 6,010 23,333 5.069 33,356 294,893 378,326 100,927 86,850 60,623 26,227 2,910 21*...................... 50.284 2,375 5,923 24,145 5,074 33,292 294,556 377,374 98,571 87,813 61,071 26,742 3,687 28*...................... 49,026 2,632 5,854 24,373 5,082 33,282 297,732 380,790 99,983 88,276 71,552 26,724 3,297 New York City 1973 Aug. 8,954 15 2,057 7,114 1,294 7,! 59,706 71,891 19,648 21,064 13,881 7,183 1,701 15. 8,925 265 2,041 6,771 1,293 7,801 60,249 73,505 22,035 21,406 13,933 7,473 1,329 22. 9,303 837 2,456 7,008 1,296 7,779 58,579 71,568 20,453 21,196 13,610 7,586 1,779 29. 8,396 527 2,606 7,024 1,302 7,734 58,934 71,691 20,415 21,589 14,084 7,505 2,327 1974 July 12,862 2,413 7,894 1,377 8,679 70,716 85,170 21,517 26,980 17,927 9,053 1,919 13,206 2,355 7,824 1.375 8,673 70,601 84,813 22,335 27,116 17,774 9,342 1,574 11,664 890 2,402 9,024 1.375 8,652 70,840 84,802 22,114 27,827 18,078 9,749 2,730 11,300 861 2,374 9,540 1,374 8,654 70,452 84,600 21,854 28,672 18,557 10,115 3,656 12,780 150 2,130 9,560 1.391 8,736 73,148 87,756 23,157 28,723 18,520 10,203 2,422 Aug. 7*. 14,085 2,098 9,184 1,390 8,749 72,683 87,315 21,947 28,767 18,836 9,931 2,305 14*. 13,230 130 2,119 8,618 1.392 8,747 71,644 86,412 22,324 29,146 19,406 9,740 1,798 21*. 12,375 2,076 9,579 1,389 8,711 71,200 86,214 21,570 29,333 19,332 10,001 2,639 28*. 11,007 2,163 9.277 1,399 8,694 73,141 88,045 22,447 29,519 19,711 9,808 2,131 Outside New York City 1973 Aug. 31,464 811 2,499 11,510 3.239 23,069 199,449 265,398 76,694 45,249 31,218 14,031 575 15. 30,822 1,694 2,674 11,655 3.240 23,015 200,394 266,866 78,005 46,521 32,456 14,065 571 22. 29,071 1,445 2,830 11,850 3.240 23,010 198,215 263,908 75,651 47,655 33,444 14,211 661 29. 28,339 2,019 3,139 11.816 3,252 23,047 197,899 263,592 76,051 48,107 33,939 14,168 475 1974 July 3. 40,603 2,261 3,687 13,553 3,663 24,572 221,979 291,150 76, J 53, 38,340 15,528 1,258 10. 41,902 1,745 3,731 13,845 3,658 24,562 222,116 290,899 78,899 54,013 38,455 15,558 1,230 17. 40,944 2,527 3,717 14,498 3,660 24,454 222,803 291,395 78,853 55,146 39,535 15,611 1,853 24. 38,149 3,919 3,763 14,369 3,656 24,449 221,853 290,321 77,731 56,119 40,107 16,012 1,055 31. 37,503 2.631 3,739 14,522 3,677 24,662 223,935 292,614 78,492 56,772 40,677 16,095 892 Aug. 7*. 40,431 2,286 4,014 14,835 3.676 24,637 223,946 292,962 77,788 57,202 40,874 16,328 1,194 14*. 39,229 2,138 3,891 14,715 3.677 24,609 223,249 291,914 78,603 57,704 41,217 16,487 1,112 21*. 37,909 2,375 3,847 14,566 3,685 24,581 223,256 291,160 77,001 58,480 41,739 16,741 1,048 28*. 38,019 2.632 3,691 15,096 3,683 24,588 224,591 292,745 77,536 58,757 41,841 16,916 1,166 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 stocks. 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

SEPTEMBER 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 1974 1973 Aug. Aug. Aug. Aug. July 1st 2nd 28 21 14 7 31 Aug. July June 11 I IV half half Durable goods manufacturing: Primary metals.................................... 1,869 1,898 1,908 1,878 1,867 2 2 -29 -23 79 -247 56 -229 Machinery............................................ 8,575 8,672 8,645 8,544 8,503 72 -16 363 779 1,069 136 1,848 615 Transportation equipment................ 3,357 3,323 3,259 3,253 3,195 162 88 110 229 358 90 587 362 Other fabricated metal products... 2,998 2,978 2,994 2,981 2,942 56 107 59 235 267 15 502 71 Other durable goods.......................... 4,983 4,946 4,946 4,883 4,797 186 185 160 560 349 -363 909 -73 Nondurable goods manufacturing: Food, liquor, and tobacco............... 4,187 4,196 4,109 4,064 4,034 153 97 -122 -344 124 340 -220 733 Textiles, apparel, and leather........... 4,341 4,327 4,311 4,273 4,096 245 -31 215 338 570 -440 908 -205 Petroleum refining.............................. 1,745 1,810 1,815 1,787 1,832 -87 549 -212 68 -176 184 -108 203 Chemicals and rubber....................... 3,301 3,298 3,299 3,309 3,199 102 73 120 355 255 -198 610 -150 Other nondurable goods................... 2,583 2,587 2,561 2,540 2,514 69 31 120 222 116 -65 338 91 Mining, including crude petroleum and natural gas.............................. 4,435 4,390 4,376 4,403 4,382 53 192 23 74 312 -233 386 -156 Trade: Commodity dealers................... 1,462 1,451 1,436 1,476 1,490 -28 -79 -88 -630 357 630 -273 588 Other wholesale......................... 6,332 6,370 6,384 6,406 6,385 -53 135 133 364 471 151 835 194 7,027 7,189 7,123 7,125 7,252 -225 83 123 556 540 -184 1,096 -19 Transportation........................................ 6,072 6,036 6,104 6,012 6,032 40 -71 -31 34 105 14 139 80 Communication...................................... 2,393 2,373 2,400 2,416 2,425 -32 -76 -29 326 149 -78 475 -91 Other public utilities.............................. 7,617 7,598 7,509 7,645 7,670 -53 749 548 1,335 -291 596 1,044 1,330 Construction............................................ 6,447 6,389 6,371 6,323 6,313 134 103 169 623 34 -200 657 11 Services...................................................... 11,778 11,795 11,772 11,793 11,689 89 41 107 404 188 565 592 927 9,624 9,439 9,345 9,469 9,579 45 187 398 580 541 302 1,121 682 Bankers’ acceptances.............................. 1,324 1,320 1,326 1,270 1,490 -166 -227 301 381 62 199 443 -123 Foreign commercial and industrial loans................................................... 4,578 4,722 4,799 4,887 4,891 -313 211 202 502 105 23 607 -361 107,028 107,107 106,792 106,737 106,577 451 2,333 2,640 6,968 5,584 1,237 12,552 4,480 Total commercial and industrial loans of large commercial banks............ 126,690 126,796 126,459 126,368 126,151 539 2,566 2,704 7,600 5,864 1,938 13,464 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 Aug. July June May Apr. Mar. Feb. Jan. Dec. 1st 28 31 26 29 24 27 27 30 26 11 r I IV III halfr Durable goods manufactur­ ing: Primary metals..................... 1,104 1,116 1,105 1,111 1,083 1,064 1,046 1,092 1,104 41 -40 -203 -21 1 Machinery............................ 3,789 3,572 3,286 3,213 3,145 3,114 3,037 2,950 2,866 172 248 186 39 420 Transportation equipment. 1,419 1,373 1,410 1,424 1,423 1,365 1,367 1,324 1,284 45 81 18 77 126 Other fabricated metal products............................ 1,000 996 954 960 934 911 911 938 894 43 17 23 2 60 Other durable goods.......... 2,197 2,169 2,107 2,012 1,972 1,915 1,837 1,737 1,772 192 143 -16 98 335 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,604 1,604 1,571 1,584 1,533 1,529 1,527 1,514 1,491 42 38 14 84 80 Textiles, apparel, and leather... ....................... 1,171 1,182 1,128 1,120 1,147 1,089 1,043 1,032 1,003 39 86 -25 59 125 Petroleum refining............... 1,047 996 963 954 934 945 901 920 933 18 12 13 44 30 Chemicals and rubber........ 1,788 1,760 1,737 1,686 1,690 1,603 1,569 1,570 1,561 134 42 9 71 176 Other nondurable goods.. 1,191 1,149 1,171 1,157 1,145 1,139 1,080 1,069 1,082 32 57 -18 37 89 Mining, including crude pe­ troleum and natural gas. 3,323 3,197 3,130 3,172 3,284 3,245 3,203 3,153 2,958 -115 287 -32 144 172 Trade: Commodity dealers.. 166 155 141 144 144 140 129 137 127 1 13 11 -7 14 Other wholesale......... 1,419 1,446 1,406 1,404 1,335 1,323 1,315 1,265 1,190 83 133 12 112 216 Retail........................... 2,529 2,512 2,428 2,514 2,543 2,480 2,376 2,249 2,206 -52 274 59 141 222 Transportation......................... 4,311 4,352 4,425 4,474 4,414 4,417 4,311 4,327 4,320 8 97 41 -26 105 Communication....................... 1,034 1,030 1,030 1,033 978 966 940 947 860 64 106 2 73 170 Other public utilities............... 3,664 3,539 3,443 3,356 3,196 3,154 3,245 3,298 3,252 289 -98 416 427 191 Construction............................ 2,218 2,183 2,130 1,984 1,908 1,898 1,940 1,943 1,905 232 -7 -87 96 225 Services...................................... 5,300 5,273 5,273 5,263 5,223 5,076 5,004 4,937 5,049 197 27 330 157 224 All other domestic loans .... 3,073 3,058 3,021 2,945 2,935 2,808 2,384 2,692 2,602 213 206 17 384 419 Foreign commercial and in­ dustrial loans................... 2,500 2,565 2,544 2,396 2,369 2,350 2,321 2,469 2,334 194 16 148 -399 210 Total loans................................ *45,847 45,227 44,403 43,906 43,335 42,531 41,486 41,563 40,793 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 □ SEPTEMBER 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n ss cial Consumer Foreign o A th l e l r IPC All commercial banks: 1970—Sept......................................................................................... 17.0 88.0 51.4 1.4 10.0 167.9 17.3 92.7 53.6 1.3 10.3 175.1 1971 Mar........................................................................................ 18.3 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 17.9 91.5 57.5 1.2 9.7 177.9 18.5 98.4 58.6 1.3 10.7 187.5 1972—June....................................................................................... 17.9 97.6 60.5 1.4 11.0 188.4 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar........................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 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 18.3 112.1 71.2 2.2 11.1 214.9 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—July........................................................................................ 14.8 61.1 27.3 1.9 6.6 111.7 Aug........................................................................................ 14.3 59.5 27.3 1.9 6.1 109.1 Sept........................................................................................ 14.5 60.6 27.2 1.9 6.5 110.8 Oct......................................................................................... 15.0 61.7 27.3 2.0 6.6 112.5 Nov........................................................................................ 14.8 62.9 27.5 2.1 6.7 113.9 Dec......................................................................................... 14.9 66.2 28.0 2.2 6.8 118.1 1974—Jan.......................................................................................... 15.2 63.8 28.4 2.3 6.7 116.5 Feb......................................................................................... 14.1 62.1 26.9 2.3 6.2 111.5 Mar........................................................................................ 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 May....................................................................................... 14.2 62.3 28.0 2.1 6.1 112.7 June....................................................................................... 14.1 63.3 28.1 2.0 6.3 113.8 July?3...................................................................................... 14.4 63.6 28.4 2.1 6.5 115.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, June 30, Dec. 31, Apr. 24, Class of Dec. 31, June 30, Dec. 31, Apr. 24, bank 1972 1973 1973 1974 bank 1972 1973 1973 1974 All commercial.......................... 559 538 507 All member—Cont. Insured...................................... 554 533 503 478 Other large banks 1............. 69 63 58 62 National member................... 311 304 288 282 All other member 1............. 313 312 294 284 State member........................... 71 71 64 64 All nonmember........................ 177 163 155 All member.................................. 381 375 352 346 Insured................................... 172 158 152 131 Noninsured........................... 5 5 3 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on pp. A-16; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-20-A-24 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l5. But they are included in the figures for ‘'Time de­ posits” and “Loans” for call dates as shown on pp. A-16-A-19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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—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 r......... 5,372 2,943 2,429 1,429 382 1,047 July 3........... 5,460 2,947 2,513 1,479 439 1,040 10........... 5,491 2,949 2,542 1,436 396 1,040 17........... 5,501 2,973 2,528 1,420 381 1,039 24........... 5,572 3,050 2,522 1,428 389 1,039 31 r........ 5,411 2,905 2,506 1,481 440 1,041 Aug. 7........... 5,419 2,846 2,573 1,422 401 1,021 14. 5,502 2,882 2,620 1,413 408 1,005 21........... 5,438 2,834 2,604 1,432 434 998 28........... 5,310 2,946 2,364 1,477 497 980 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 Daoer Held by— Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 1965............................ 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966............................ 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 1967............................ 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968............................ 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969............................ 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970............................ 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............................ 32,126 495 10,923 1,478 19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972............................ 34,721 930 11,242 1,707 20,842 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973—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 June............... 44,846 1,635 13,249 5,317 24,645 13,174 3,535 3,066 469 304 795 8,540 3,287 3,219 6,668 July................. 45,193 1,553 13,636 5,497 24,507 15,686 3,499 2,983 516 218 1,023 10,947 3,589 3,774 8,323 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 □ SEPTEMBER 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1973—June 8............ 7%■ 1974—Jan. 7............ 91/2-934.- 1974—Apr. 11............ 934—98/10— 1974—June 3............ ll%.-ll«/io- 19............ V/tm-m 99/io 10. 11V4 25............ 7%- 14............ 9^-934■- 15............ 10.-10Vio- 7............ 1114-11%-- 98/io 1014 116/10 July 2............ m b-8 29............ 9*4-9%.- 19............ 10-101 /10- 10............ !!%■ 3............. 734-8 ■ 97/io 1014- 21............ 111/4-11%. 9............. 8-8 Va ■ 23............ ioi4«~i04/i0 24............ 11%.-1134 17............. 814--8% Feb. 11............ 9-9i4-93/io 24............ 10%B- 25............ 11%.-1134- 18............. 814-8 %■ 19............ 9 .-914 104/10- 118/10 23............. 8%- 25............ 87/ia-8 34.-9 10% 26............ 11%-11%«- 30............. 8%-8%" 26............ 87/io-834. 25............ 10*4-104/10- 118/10 10%. 28............ 1134.-118/l0 Aug. 6............. 834-9. Mar. 4............. 8 Vi-8 7/io- 26............ 104/10- 7............. 9a 834- 10%.- July 3............ 1134.-118/10- 13............. 9-914 ■ 5............ 8 %-86/io- 1034-11 12 21............. 9%«-9% 834« 30............ 10%.- 5............ 118/10—12. 22............. 9%- 19............ 834.-88/10 106/10- 9............ 12.-1214 28............. 9%-9%« 21............ 8%.-88/io-9 1034-11 23............ 1034-12.- 29............. 934- 22............ 8 8/10-9. 1214 26............ 9. May 2............ 10%-106/io- Sept 14......... 9 34 .-10 28............. 9 .-914 1034 B-ll Aug. 20............ 1034-12. 18............. 10a 29............ 9-914 «-9% 3............ 10«/io-1034B 27............. 9 34-10a -11 Apr. 2............ 914«-94/io- 6............ IO6/10-IO34- Oct. 22............. 9i/2-934-10« 9% 11 ■ 24............. 9%-9%.-10 3............ 914-94/10- 7............. 11 ■ 9%« 10............ 11-1114" 4............ 94/10-9 Vi ■- 13............. 1114«-114/10 934 17............. 1114-11-4/10 5............ 94/10-9%- -11%" 934- 20............ 11%«-11% 8............ 934.-98/10- 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 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 7 Southeast.................................. 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

SEPTEMBER 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 bills 5 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® 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—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 July................ 11.93 11.72 9.00 11.88 12.92 7.752 7.55 8.028 7.94 8.04 8.89 8.39 Aug................ 11.79 11.65 9.31 12.08 12.01 8.744 8.96 8.853 9. 11 8.88 9.54 8.64 Week ending— 1974—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 July 6........ 12.00 11.81 9.00 11.31 13.55 7.808 7.53 8.055 8.15 8.38 9.09 8.47 13 ... 12.18 11.95 9.00 12.00 13.34 7.892 7.45 8.480 8.05 8. 13 9.09 8.60 20........ 12.15 11.95 9.00 12.00 13.04 7.702 7.72 7.876 7.83 7.80 8.67 8.35 27........ 11.73 11.50 9.00 12.00 12.60 7.604 7.43 7.700 7.64 7.81 8.62 8.08 Aug. 3........ 11.43 11.23 9.00 12.00 12.29 7.698 7.84 8.055 8.38 8.38 9.19 8.55 10........ 11.60 11.48 9.00 12.00 12.09 8.505 8.75 8.660 8.82 8.49 9.27 8.59 17........ 11.73 11.63 9.05 12.08 12.02 8.763 8.75 8.719 8.78 8.50 9.33 8.58 24 , , 11.95 11.80 9.65 12.16 12.23 8.846 9.29 8.899 9.41 9.25 9.71 8.69 31........ 12.00 11.85 9.65 12.10 11.84 9.908 9.37 9.930 9.61 9.38 9.93 8.69 1 Beginning Aug. 15, 1974, the rate is the average of the midpoint of were based on the daily effective rate—the rate considered most repre­ the range of daily dealer closing rates offered for domestic issues; prior sentative of the day’s transactions, usually the one at which most trans­ data are averages of the most representative daily offering rate quoted by actions occurred. dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of the most representative daily offering rate published by closing bid prices. finance companies, for varying maturities in the 90-179 day range. 5 Bills quoted on bank-discount-rate basis. 3 Seven-day averages for week ending Wednesday. Beginning with 6 Selected note and bond issues. statement week ending July 25, 1973, weekly averages are based on the daily average of the range of rates on a given day weighted by the volume Note.—Figures for Treasury bills are the revised series described on p. of transactions at these rates. For earlier statement weeks, the averages A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 INTEREST RATES □ SEPTEMBER 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 rerioa United Total 1 ( S t l e t o a r n m te g ) s ­ Total i Aaa Baa New ce R n e t ­ ly Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970............... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971............... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972............... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 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 7.12 1973—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 8.37 1974—Jan.. . 6.56 5.23 5.03 5.49 8.21 r8.21 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 r8.96 Apr.. 7.04 5.76 5.45 6.06 r8.99 r8.95 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 9.40 8.85 8.47 9.34 8.69 8.89 9.08 8.25 4.02 July. , 7.18 6.70 6.34 7.10 10.20 10.04 9.10 8.72 9.55 8.95 9.08 9.35 8.40 4.42 Aug. . 7.33 6.70 6.38 7.10 10.07 10.19 9.36 9.00 9.77 9.16 9.30 9.70 8.61 4.90 Week ending 1974—July 6. 7.12 6.61 6.20 7.00 9.79 8.99 8.62 9.47 8.85 8.95 9.25 8.22 4.30 13. 7.23 6.90 6.50 7.25 10.25 10.16 9.04 8.66 9.49 8.90 9.01 9.30 8.29 4.54 20. 7.24 6.80 6.50 7.15 10.10 10.02 9.10 8.71 9.55 8.95 9.09 9.36 8.43 4.35 27. 7.12 6.48 6.15 7.00 10.09 9.16 8.77 9.61 9.02 9.16 9.40 8.52 4.29 Aug. 3. 7.24 6.69 6.40 7.05 r10.31 10.28 9.23 8.86 9.67 9.07 9.23 9.48 8.55 4.61 10. 7.31 6.60 6.25 7.00 9.82 10.15 9.29 8.93 9.70 9.11 9.27 9.57 8.50 4.47 17. 7.35 6.64 6.30 7.05 10.10 10.02 9.34 8.98 9.74 9.12 9.30 9.67 8.52 4.82 24. 7.30 6.71 6.35 7.15 10.26 10.28 9.39 9.03 9.78 9.17 9.30 9.77 8.64 5.05 31. 7.36 6.88 6.60 7.25 9.99 10.26 9.47 9.07 9.86 9.25 9.34 8.97 8.76 5.24 Number of issues2.. . 12 j 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt.: General obligations only, based on Thurs. figures; from Moody’s arately. Because of a limited number of suitable issues, the number Investor Service. (3) Corporate: Rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds are weekly averages compiled by the Board 23, 1967, there is no longer an Aaa-rated railroad bond series. of Governors of the Federal Reserve System. Rates for seasoned issues 2 Number of issues varies over time; figures shown reflect most recent are averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; eamings/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 Federal Reserve Bank of New York. (2) State and local 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 Vi hours per day, or 27 Vi 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

SEPTEMBER 1974 o SECURITY MARKETS A 31 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in 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 i u al 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—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 July................. 55.97 71.9 58.5 82.82 93.54 35.63 35.37 43.27 48.35 31.01 27.50 44.23 77.92 12.459 1,610 Aug................ 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Week ending— 1974—Aug. 3........ 55.59 71.3 58.1 79.62 89.68 36.05 35.10 41.71 46.41 30.56 27.13 42.79 77.79 11,092 1,291 10........ 55.04 72.5 58.1 80.98 91.21 36.86 35.62 42.42 47.19 31.13 27.65 43.34 78.36 13,321 1,488 17........ 54.76 72.7 58.0 77.39 86.99 36.05 34.88 40.63 45.05 30.07 27.09 41.28 77.11 10,263 1,150 24........ 55.13 71.5 57.9 73.48 82.54 34.37 33.36 38.56 42.61 28.69 26.45 38.57 73.37 13,286 1,434 31 54.75 69.8 56.3 71.20 80.10 32.61 31.84 37.28 41.26 27.35 25.61 36.39 70.29 14,837 1,668 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—July........................................ 7,299 6,243 1,056 6,010 976 216 64 17 16 1,957 379 1,542 Aug........................................ 7,081 6,056 1,025 5,830 949 210 61 16 15 1,952 348 1,462 Sept....................................... 6,954 5,949 1,005 5,730 929 204 60 15 16 1,909 379 1,632 Oct......................................... 7,093 5,912 1,181 5,690 1,105 203 59 19 17 1,878 419 1,713 Nov....................................... 6,774 5,671 1,003 5,460 1,027 197 60 14 16 1,917 464 1,685 Dec........................................ 6,382 5,251 1,131 5,050 1,070 189 46 12 15 1,866 454 1,700 1974—Jan......................................... 6,343 5,323 1,020 5,130 961 182 45 11 14 1,845 445 1,666 Feb........................................ 6,462 5,423 1,039 5,230 977 183 46 10 16 1,843 420 1,604 Mar.r.................................... 6,527 5,519 1,008 5,330 944 180 48 9 16 1,869 425 1,583 Apr.r.................................... 6,567 5,558 1,009 5,370 952 179 44 9 13 1,868 415 1,440 May...................................... 6,381 5,361 1.020 5,180 963 172 44 9 13 1,858 395 1,420 June...................................... 6,345 5 260 1,085 5,080 172 8 395 1,360 July....................................... 4,925 4,760 158 7 402 1,391 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 o SEPTEMBER 1974 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUN1S (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 Net in debit status Total E pe n r d i o o d f l ( d i m o o o n i f l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 40 der End of period c st r a e t d u i s t 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 ( b f m a d i l o l a l n l io l c a n e r s s ', ' lars)! 1973—July........................ 35.9 46.7 17.4 5,740 1973—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 June....................... 40.3 37.4 22.4 6,538 June. 5,080 4.0 5.0 7.7 12.6 21.8 49.1 July........................ 40.2 36.5 23.2 6,695 July.. 4,760 4.0 4.8 7.9 13.3 22.2 47.9 Note.—Special miscellaneous accounts contain credit balances that 1 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 End of period M ga o g r e t­ Other G U o .S vt . . S g l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i T e e a a t s n b o i n e e e i t r d s l a r v i a l ­ e l De it p s os­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1970................. 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 1971................. 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 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—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 May... 74,011 4,388 2,750 893 22,241 1,656 2,355 108,295 97,391 3,173 7,731 1,129 608 400 1,014 3,151 June... 74,281 4,274 2,758 880 22,324 1,651 2,488 108,654 98,190 2,688 7,776 1,099 602 328 1,001 3,031 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

SEPTEMBER 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 St n a 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 O as 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—June'.............................. 244,495 11,315 4,387 3,374 3,554 116,172 90.637 25,535 77,982 7,526 18,713 12,787 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. j.............................. 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 4,382 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 May................................ 257,518 11,606 4,318 3,538 3,750 120,642 95,721 24,921 82,750 7,840 21,067 13,613 June................................ 258,398 11,617 4,290 3,562 3,765 120,526 95,934 24,592 83,228 7,878 21,321 13,828 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 ge rt 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 n a e n s s s Other ou a p t t s e e t r a n i n d o d d o i 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—July.......................... 225,265 22,628 18,296 266,189 221,399 16,550 14,226 6,686 7,328 13,710 Aug.......................... 227,778 21,001 18,704 267,483 220,243 16,896 15,634 6,449 8,261 12,249 Sept.......................... 229,182 20,025 19,008 268,215 222,086 16,782 16,255 6,064 7,028 10,799 Oct........................... 230,195 20,618 19,295 270,108 223,033 17,041 16,435 5,535 8,064 9,909 Nov.......................... 231,089 21,220 19,449 271,758 224,304 17,330 16,312 5,011 8,801 9,717 Dec.......................... 232,104 21,027 19,227 272,358 227,254 17,108 17,100 4,676 6,220 9,532 1974—Jan........................... 232,980 22,378 19,502 274,860 229,435 17.333 16,663 4,380 7,049 9,788 Feb........................... 234,426 23,327 19,901 277,654 231,264 17,623 16,431 4,304 8,032 10,740 Mar......................... 236,514 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........................ 241,650 23,680 21,538 286,868 235,731 18,074 19,282 5,050 8,731 12.493 June......................... 243,791 22,975 21,733 288,499 238,421 17,893 20,274 5,044 6,867 11,744 Julyp....................... 245,521 23,015 22,075 290,611 237,933 18,183 21,629 4,878 7,988 10,992 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 a SEPTEMBER 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public i 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 S i p ss e u c e ia s l Other balance Fiscal year: 197 1 188,392 211,425 -23,033 27,211 -347 6,461 956 19,448 710 -710 3,587 197 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,003 197 3 232,225 246,526 -14,301 30,881 216 12,141 -319 19,275 2,459 -1,613 -4,129 1974*..................... 264,847 268,343 -3,495 16,918 912 13,703 1,110 3,017 -3,417 534 -2,405 Half year: 1972—July-Dee... 106,062 118,579 -12,517 22,038 876 6,351 -823 17,386 956 -1,520 -5,434 1973—Jan.-June.. 126,163 127,947 -1,784 8,843 -660 5,790 504 1,889 1,503 -93 1,305 July-Dee.., 124,253 130,360 -6,107 11,756 477 5,396 824 6,013 -2,202 -191 -2,299 1974—Jan.-June*, 140,594 137,983 2,612 5,162 435 8,307 286 -2,996 -1,215 725 -106 Month: 1973—Jul y '18,210 '22,717 '-4,506 862 4 1,258 325 -717 -5,398 '-523 '-698 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 8 -5,032 1,120 -1,423 June*........ 31,174 24,123 7,052 385 37 4,156 143 -3,877 2,711 -125 -588 July............ 20,939 24,411 -3,472 1,109 -126 -836 176 1,644 -2,705 -658 -1,534 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 ie y s Sp G I e n c o v i v a e t l s , t m ac e c n o t u s n o ts f S n L p o e e t c s e s i s a : 2 l E T q o u t a a l l s: s c p p o G o r N r i n o p v o s v s a w o t . t . r — e - e s d issues Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,784 22,356 825 304,328 37,086 197 2 2,344 7,934 139 10,117 427,260 10,894 89,598 23,961 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 51,325 1974*............ 2,919 6,152 88 9,159 475,060 12,021 115,442 24,752 825 346,062 65,411 Calendar year: 197 2 1,856 8,907 310 11,073 449,298 11,770 95,948 23,140 825 341,155 43,459 197 3 2,543 7,760 70 10,374 469.898 11,586 107,135 24,467 825 349,058 59,857 Month : 1973—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 6,448 474,675 11,984 111,286 24,609 825 349,939 62,650 June*. 2,919 6,152 9,159 475,060 12,021 115,442 24.752 825 346,062 65,411 July... 3,822 2,544 6,454 6475,344 11,895 114,606 24,928 347,706. 1 The decrease in Federal securities resulting from conversion to private 4 As of Jan. 3, 1972, the Treasury operating balance was redefined to ownership of Govt.-sponsored corporations (totaling $9,853 million) is exclude the gold balance and to include previously excluded “Other deposi­ not included here. In the bottom panel, however, these conversions de­ taries” (deposits in certain commercial depositaries that have been con­ crease the outstanding amounts of Federal securities held by the public verted from a time to a demand basis to permit greater flexibility in mainly by reductions in agency securities. The Federal National Mortgage Treasury cash management). Association (FNMA) was converted to private owership in Sept. 1968 and 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. the Federal intermediate credit banks (FICB) and banks for coopera­ Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks tives in Dec. 1968. for cooperatives (both beginning Dec. 1968). 2 Represents non-interest-bearing public debt securities issued to the 6 Beginning July 1974, public debt securities excludes $825 million of International Monetary Fund and international lending organizations. notes issued to International Monetary Fund to conform with Office of New obligations to these agencies are handled by letters of credit. Management and Budget’s presentation of the budget. 3 Includes accrued interest payable on public debt securities, deposit funds, miscellaneous liability and asset accounts, and seigniorage. 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

SEPTEMBER 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 ta n x s es Period Employment Total W he i l t d h­ C P E ti r a l o e e m n c s. ­ ­ 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 con ta t x ri e b s u a ti n o d n s2 i e n U m s n u p - r l. . O n r t e h e ­ t e r t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i e p s ­ t c s . 4 F p u ai n g d n 1 P ro ay ll ­ e S m el p f l - . ceipts 3 taxes Fiscal year: 197 1 188,39276,490 24,262 14,52286,23030,320 3,535 39,751 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 27,01721,866 103,24639,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 1974p......................... 264,847 111,857 2730,81923,957 118,75041,789 3,12562,886 3,008 6,907 4,049 76,849 16,885 3,334 5,009 5,355 Half year: 1972—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... 126,16452,037 21,23321,17952,09423,730 1,43430,013 2,206 3,616 1,841 37,657 8,016 1,637 2,584 1,861 July-Dee.... 124,253 52,961 6,207 99958,170 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 1974—Jan.-June?3.. 140,49558,896 24,611 22,95460,58025,200 1,63032,919 2,808 2,932 2,08241,741 7,920 1,701 2,495 2,587 Month: 1973—Jul y '18,210 '8,484 681 354 '8,811 1,552 202 4,608 382 346 5,336 1,538 276 398 '502 Aug............... 21,291 9,085 451 257 9,279 904 209 7,087 1,357 333 8,778 1,434 303 494 308 Sept............... 25,007 7,940 3,903 135 11,707 5,477 230 4,812 177 103 317 5,409 1,436 238 373 597 Oct................. 17,637 8,752 550 71 9,230 1,515 462 4,119 24 217 351 4,712 1,459 291 454 437 Nov............... 20,209 9,811 261 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—Ja...................n 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 June?............ 31,174 10,404 4,084 462 14,029 9,313 236 4,757 281 88 329 5,455 1,464 301 344 503 July............... 20,939 10,227 957 378 10,806 1,796 310 5,005 418 358 5,781 1,517 325 418 607 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 and lop. and and erans est eral nue trans­ fense search ture 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 81,538 10,747 20,584 4,889 -7,858 197 3 246,526 76,023 3,132 3,311 6,051 559 12,505 4,162 10,822 91,343 12,004 22,836 5,519 7 6,636 -8,379 1974*..................... 268,343 78,793 4,175 3,228 5,183 -990 12,549 5,129 10,575 105,577 13,370 28,101 6,485 6,106 -9,938 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—July-Dee... 118,578 35,329 1,639 1,676 4,616 330 6,199 2,637 5,133 43,213 5.740 10,619 2,869 2,617 -4,039 1973—Jan.-June.. 127,947 40,694 1,493 1,635 1,435 229 6,306 1,525 5,749 48,130 6,264 12,217 2,650 4,019 -4,340 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,C~~ 3,032 -4,753 1974—Jan.-June*7.137,983 41,462 2,558 1,727 1,711 -1,753 5,162 1,914 5,803 56,599 6,852 14,661 3,397 3,074 -5,185 Month: 1973—Jul y r22,717 '4,899 308 278 2,011 c—942 2,104 911 776 7,899 1,100 2,184 '544 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,C 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 June*......... 24,123 7,468 1,050 423 210 -836 1,562 397 1,263 9,655 1,020 2,314 648 -1,052 July............ 24,411 5,862 369 216 -60 498 1,099 693 854 10,060 1,258 2,525 466 1,538 -967 1 Collections of these receipts, totaling $2,427 million for fiscal year 6 Estimate presented in Budget of the U.S. Government, Fiscal Year 1973, were included as part of nonwithheld income taxes prior to Feb. 1975. Breakdown does not add to total because special allowances for 1974. contingencies, Federal pay increase (excluding Department of Defense), 2 Old-age, disability, and hospital insurance, and Railroad Retirement and acceleration of energy research and development, totaling $1,561 accounts. million, 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 □ SEPTEMBER 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S ss p u e e c s i a 5 l debt i Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n r le d t­ s Total 3 F is o su re e i s g n 4 b S o in a n g v d s ­ s & notes 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—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 25.0 62.4 115.4 July. 475.3 358.8 268.8 107.3 128.4 33.0 2.3 86.8 24.4 62.7 115.5 Aug. 481.8 361.1 272.1 110.6 127.7 33.9 2.3 85.7 23.2 62.8 119.6 1 Includes non-interest-bearing debt (of which $617 million on Aug. 31, 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 ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r n o t e e d n i r g a ­ n l 1 t O i m o n r t v i s h 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—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 2bl. 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 '•133.9 81.4 259.4 54.8 2.6 5.8 11.2 29.2 61.7 18.3 57.3 18.5 June............... 475.1 138.2 80.5 256.4 53.2 2.6 5.9 10.8 28.3 61.9 18.8 57.7 17.3 July................. 475.3 135.5 78.1 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. Beginning in July 1974, total gross public debt includes Federal trust funds; Treasury estimates for other groups. Financing Bank bills and excludes notes issued to the IMF ($825 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 1971—Dec. 31............................................................. 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Dec. 31............................................................. 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31............................................................. 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—June 30............................................................. 266,575 139,942 105,019 34,923 77,199 26,957 17,403 5.074 July 31............................................................. 268,782 142,245 107,321 34,924 77,200 26,952 17,346 5,040 U.S. Govt, agencies and trust funds: 1971—Dec. 31..................................................... 18,444 1,380 605 775 7,614 4,676 2,319 2,456 1972—Dec. 31..................................................... 19,360 1,609 674 935 6,418 5,487 4,317 1,530 1973—Dec. 31..................................................... 20,962 2,220 631 1,589 7,714 4,389 5,019 1,620 1974—June 30..................................................... 21,229 2,660 462 2,198 6,865 4,633 5,719 1,351 July 31..................................................... 21,425 2,703 469 2,234 6,989 4,665 5,717 1,351 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—June 30..................................................... 80,485 50,132 37,321 12,811 20,231 8,127 1,753 241 July 31..................................................... 78,103 48,171 35,464 12,707 19,967 7,954 1,753 259 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—June 30..................................................... 164,861 87,150 67,236 19,914 50,103 14,197 9,931 3,482 July 31..................................................... 169,254 91,371 71,388 19,983 50,244 14,333 9,876 3,430 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—June 30............................................. 40,181 11,334 3,309 8,025 22,741 4,845 1,010 250 July 31............................................ 40,051 11,266 3,528 7,738 22,720 4,801 1,021 242 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—June 30............................................. 1,673 377 135 242 717 218 259 102 July 31............................................ 1,577 326 103 223 700 199 252 101 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—June 30............................................. 4,571 569 194 375 1,009 1,276 1,329 389 July 31............................................ 4,484 468 130 338 1,021 1,282 1,264 446 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—June 30............................................ 4,400 2,327 1,219 1,108 1,476 528 56 13 J uly 31............................................ 4,764 2,743 1,408 1,335 1,635 314 58 15 Savings and loan associations: 1971—Dec. 31............................................ 3,002 629 343 286 1,449 587 162 175 1972—Dec. 31............................................ 2,873 820 498 322 1,140 605 226 81 1973—Dec. 31............................................ 2,103 576 121 455 1,011 320 151 45 1974—June 30............................................. 1,907 385 53 332 923 360 214 25 July 31............................................ 1,894 399 67 332 895 370 208 25 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—June 30............................................ 8,238 4,508 3,245 1,263 1,715 738 1,031 246 July 31............................................ 8,558 4,925 3,535 1,390 1,611 749 1,031 244 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—June 30............................................ 103,891 67,650 59,081 8,569 21,522 6,232 6,032 2,457 July 31............................................ 107,926 71,244 62,617 8,627 21,662 6,618 6,042 2,357 Note.—Direct public issues only. Based on Treasury Survey of banks, and 734 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) 504 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) 5,588 commercial banks, 477 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 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 other i dealers brokers banks 1973—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 45 614 836 951 937 710 May................................ 3,542 2,645 693 133 72 711 905 991 936 861 June............................... 3,084 2,549 385 110 41 693 759 877 755 978 July................................. 2,566 2,114 348 66 38 490 685 681 710 1,044 Week ending— 1974—July 3......................... 3,013 2,570 339 72 32 581 707 897 828 941 10......................... 2,568 2,139 344 58 27 545 617 646 760 1,054 17......................... 2,567 2,095 341 73 57 526 693 728 620 1,099 24......................... 2,194 1,759 328 66 41 388 635 555 616 1,252 31......................... 2,704 2,224 383 73 24 456 749 706 793 890 Aug. 7......................... 3,058 2,456 469 84 50 635 755 898 770 630 14......................... 3,111 2,070 519 409 112 637 809 809 856 802 21......................... 2,573 1,968 294 244 67 444 729 658 741 846 28......................... 3,246 2,703 303 212 27 458 1,027 750 1,012 990 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 e g t c e i o e u n v s r c t i y . ­ Period sou A r l c l es Y N C o e it w r 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—July.... 1,901 2,062 -250 -43 131 511 1973—July............. 2,826 725 544 510 1,047 Aug....... 1,788 1,977 -94 -107 12 273 Aug............. 2,318 829 327 386 777 Sept----- 3,201 2,958 316 -111 38 799 Sept............. 4,244 1,620 877 441 1,306 Oct........ 3,073 2,858 93 56 67 904 Oct.............. 3,721 1,253 918 328 1,223 Nov.... 3,618 3,034 95 350 139 1,185 Nov............ 4,469 1,809 900 570 1,190 Dec........ 4,441 3,697 223 396 124 1,400 Dec.............. 5,468 2,322 1,147 671 1,329 1974—Ja...........n 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 Apr.............. 2,449 600 728 287 833 May___ 495 421 -33 66 41 791 May............ 1,637 26 486 213 913 June___ 594 447 52 78 16 1,226 June............ 2,477 241 884 268 1,083 July___ 263 219 -50 90 4 935 July............. 1,710 6 596 216 892 Week ending— Week ending— 1974—June 5 1,049 925 47 63 14 1,232 1974—June 5. .. 2,152 148 722 191 1,092 12 1,193 1,043 59 70 21 1,304 12... 3,527 587 1,244 334 1,363 19 807 657 57 84 9 1,219 19... 2,879 648 977 279 975 26 -328 -485 51 89 17 1,214 26... 1,860 -82 651 299 993 July 3. 9 -117 18 86 21 972 July 3... 1,527 -283 602 152 1,055 10. -113 -220 -14 92 29 776 10... 1,725 65 588 170 902 17 -274 -271 -89 86 872 17... 1,343 -140 554 228 700 24 26 17 -77 93 -7 1,019 24... 1,497 -18 595 204 715 31 1,505 1,483 -52 85 -10 1,077 31... 2,282 212 669 296 1,106 Note.—The figures include all securities sold by dealers under repur­ i All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ FEDERALLY SPONSORED CREDIT AGENC ING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, JULY 31, 1 Cou­ Amount Cou­ Amount pon (millions Agency, and date of issue pon (millions Agency, and date of issue illion of dollars) and maturity rate of dollars) and maturity lollai Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 7.65 173 Debentures: 2/4/74-8/1/74. ... 565 5Vs 400 9/10/69 - 9/10/74........... 7.85 250 3/4/74-9/3/74.... 357 9 y» 800 2/10/71 - 9/10/74............. 5.65 300 4/1/74- 10/1/74... 326 8.00 217 5/10/71 - 12/10/74........... 6.10 250 5/1/74-11/4/74. .. 268 7.05 1,000 9/10/71 - 12/10/74........... 6.45 450 6/3/74 - 12/2/74.. . 364 6.10 250 11/10/70 - 3/10/75......... 7.55 300 7/1/74- 1/2/75.... 398 5% 400 10/12/71 - 3/10/75......... 6.35 600 10/1/73 -4/4/77... 200 8.20 500 4/12/71 -6/10/75............. 5.25 500 7.15 700 10/13/70 - 9/10/75......... 7.50 350 .05 265 3/12/73 -9/10/75............. 6.80 650 Federal intermediate 6.80 300 3/10/72 - 12/10/75......... 5.70 500 credit banks 7.95 300 9/10/73 - 12/10/75........... 8.25 300 Bonds: m 500 3/11/71 - 3/10/76............. 5.65 500 11/1/73 - 8/1/74. 628 7.15 400 6/12/73 - 3/10/76............. 7.13 400 12/3/73 -9/3/74. 593 6.50 350 6/10/71 -6/10/76............. 6.70 250 1/2/74 - 10/1/74. 799 7.05 600 2/10/72 -6/10/76............. 5.85 450 2/4/74- 11/4/74. 754 9.10 700 11/10/71 -9/10/76........... 6.13 300 3/4/74- 12/2/74. 785 8.70 400 6/12/72-9/10/76............ 5.85 500 5/1/72 - 1/2/75. . 240 73/g 300 7/12/71 - 12/10/76........... 7.45 300 4/1/74- 1/2/75.. 608 8% 300 12/11/72- 12/10/76......... 6.25 500 5/1/74-2/3/75. . 674 7.20 600 6/10/74-12/10/76........... 8.45 500 6/3/74 - 3/3/75.. 796 7.45 300 2/13/62 - 2/T0/77........... 4% 198 7/1/74-4/1/75.. 811 7.80 500 9/11/72 - 3/10/77............. 6.30 500 1/3/72-7/1/75. . 302 9.55 500 3/11/74 - 3/10/77............. 7.05 400 3/1/73 - 1/5/76. . 261 7.20 500 12/10/70 - 6/10/77......... 6.38 250 7/2/73 - 1/3/77. . 236 8.70 500 5/10/71 -6/10/77............. 6.50 150 7/1/74-4/4/77. . 321 6.95 200 12/10/73 -6/10/77........... 7.20 500 1/2/74- 1/3/78. . 406 7.15 300 9/10/71 -9/12/77............. 6.88 300 8.80 600 9/10/73 -9/12/77............. 7.85 400 6V4 300 7/10/73 - 12/12/77........... 7.25 500 Federal land banks 7.45 300 10/1/73 - 12/12/77........... 7.55 500 Bonds: 7.60 500 6/10/74 - 3/10/78............. 8.45 650 4/20/71 - 10/21/74.. 300 8.65 600 6/12/73 - 6/12/78............. 7.15 600 2/20/70 - 1/20/75.. 220 sy4 400 3/11/74-9/11/78............. 7.15 550 4/23/73 - 1/20/75. .. 300 9.50 500 10/12/71 - 12/11/78___ 6.75 300 4/20/65 - 4/21/75. . 200 7.75 350 7/10/74- 12/11/78.......... 8.95 300 7/20/73 -4/21/75... 300 7.05 300 12/10/73 - 3/12/79........... 7.25 500 2/15/72-7/21/75... 425 7.80 200 9/10/73 -6/11/79............. 7.85 300 4/22/74-7/21/75... 300 6.60 200 6/12/72-9/10/79............. 6.40 300 7/20/71 - 10/20/75.. 300 7.30 188 12/10/71 - 12/10/79___ 6.55 350 10/23/73 - 10/20/75. 362 83/4 300 2/10/72 - 3/10/80............. 6.88 250 4/20/72 - 1/20/76... 300 m 400 6/10/74 - 6/10/80............. 8.50 350 7/22/74 - 1/20/76.. . 650 2/16/73 - 7/31/80............. 5.19 1 2/21/66 - 2/24/76.. 123 2/16/73 - 7/31/80............. 3.18 9 1/22/73 - 4/20/76... 373 10/1/73 -9/10/80............. 7.50 400 4/22/74-4/20/76... 400 1/16/73 - 10/30/80........... 4.46 5 7/20/66 - 7/20/76.. 150 7 5 . . 0 3 5 0 4 2 0 0 0 0 6 1 / 2 2 /1 9 1 / / 7 7 2 2 - - 1 1 /2 2 9 /1 /8 0 1 /8 .. 0 .. . . . . . . . . . . . . . . . . . . 6 6. . 1 6 5 0 3 1 0 5 0 6 4 1 / / 2 2 3 1 /7 /7 3 4 - - 7 1 / 0 2 / 0 20 /7 /7 6 6 .. . . . 4 3 5 6 0 0 6.15 350 3/12/73 - 3/10/81............. 7.05 350 4/22/74-4/20/77... 565 8 7 7 . . . 6 7 1 5 5 0 1 1 1 4 5 5 0 0 0 4 3 3 / / / 1 2 2 8 1 1 / / / 7 7 7 3 3 3 - - - 4 5 5 /1 / / 1 1 0 / / / 8 8 8 1 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4 5 . . . 5 5 7 9 0 7 2 1 6 2 8 7 2 1 / / 0 2 2 / 0 0 2 / / 0 7 6 / 3 3 71 - - - 2 7 / / 1 2 2 0 0 0 / / 2 / 7 7 0 3 / 7 - 7 7 . 7 . 8 . . 5 3 1 5 0 48 0 0 1/21/71 - 6/10/81........... 7.25 250 5/2/66 - 4/20/78 . . . 150 9/10/71 -9/10/81............. 7.25 250 7/20/72 - 7/20/78. . 269 3/11/74-12/10/81........... 7.30 250 7/22/74 - 7/20/78... 350 7/10/74-3/10/82............. 8.88 200 10/23/73 - 10/19/78. 550 3,330 6/28/72-5/1/82............... 5.84 58 2/20/67 - 1/22/79... 285 2/10/71 - 6/10/82............. 6.65 250 1/21/74- 1/22/79. .. 300 8.00 200 9/11/72 - 9/10/82............. 6.80 200 9/15/72 -4/23/79... 235 4.38 248 12/10/73 - 12/10/82......... 7.35 300 2/20/74 - 7/23/79. .. 389 7.40 250 3/11/71 -6/10/83............. 6.75 200 10/23/72 - 10/23/79. 400 6/12/73 - 6/10/83............. 7.30 300 1/22/73 - 1/21/80... 300 11/10/71 -9/12/83........... 6.75 250 7/20/73 - 7/21/80... 250 8.38 250 4/12/71 -6/11/84............. 6.25 200 2/23/71 -4/20/81... 224 3.58 53 12/10/71 - 12/10/84___ 6.90 250 7/22/74 -7/20/81... 265 5.48 5 3/10/72 - 3/10/92... 7.00 200 4/20/72 - 4/20/82... 200 5.85 71 6/12/72-6/10/92.... 7.05 200 4/23/73 - 10/20/82.. 239 5.92 35 12/11/72- 12/10/97. . 7.10 200 10/23/73 - 10/20/83. 5.50 10 5.49 21 5.74 81 8.63 200 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 □ SEPTEMBER 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 and Mort­ to ments de­ and de­ stock gage and cooper­ Bonds dis­ Bonds 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—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 2,891 2,810 7,850 7,403 11,878 10,843 May.. 17,103 1,956 96 14,893 2,215 2,376 25,917 25,089 2,694 2,674 8,195 7,585 12,142 10,843 June.. 17,642 2,564 115 16,393 2,158 2,413 26,559 '25,232 2,733 2,449 8,479 '7,860 12,400 10,843 July.. 18,582 2,578 150 17,390 1,954 2,450 27,304 25,878 3,008 2,477 8,706 8,212 12,684 11,782 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 preceding 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 ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E a d ti 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

SEPTEMBER 1974 □ SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v 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 32,123 24,775 7,354 3,670 9,291 1972....................... 96,522 17,080 12,825 23,070 1,589 41,957 28,896 19,434 9,462 3,367 9,694 1973................... 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 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 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 a u n 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 197 0 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 197 1 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 197 2 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 2,095 197 3 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 May... 387 12 30 143 236 8 361 410 355 19 351 231 June... 703 25 133 89 183 1,099 497 303 29 337 181 July... 364 169 139 112 250 1 651 269 244 60 223 151 Aug.. 4 230 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. 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 Apr... 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 4 See note to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. * 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 □ SEPTEMBER 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 o o nd 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- temal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 1973—July. . 364 357 -7 50,933 4,594 46,339 1963............... 2,460 1,504 952 25,214 1,341 23,873 Aug. . 239 432 -193 49,553 4,567 44,986 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Sept... 330 395 -65 52,322 4,641 47,681 Oct.. . 305 559 -254 51,952 4,168 47,784 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Nov... 502 542 -40 45,814 4,126 41,688 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Dec... 349 392 — 43 46,518 4,002 42,516 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 Feb... 215 303 -88 45.958 4,447 41,511 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Mar... 297 346 -49 44,423 4,406 40,017 1970................ 4,624 2,987 1,637 47,618 3,649 43,969 Apr... 262 327 -65 42,679 4,426 38,253 May.. 323 320 3 41,015 4,389 36,626 1971............... 5,145 4,751 774 56,694 3,163 53,531 June.. 337 276 61 40,040 4,461 35,579 1972............... 4,892 6,563 -1,671 59,831 3,035 56,796 July. . 442 352 90 37,669 4,609 33,060 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

SEPTEMBER 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 t e s s d ­ co c a n a t l i l s p o o u i n w t m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s 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 fi t i t e s s d ­ co c a t n a l i s l o p o u n i w t m a ­ l p ­ ances 1 ances 1 1968............... 87.6 39.9 47.8 23.6 24.2 46.8 1972—III'.. 100.2 41.8 58.4 27.8 30.6 66.7 1969............... 84.9 40.1 44.8 24.3 20.5 51.9 IV'.. 108.2 45.2 63.1 28.2 34.9 68.2 1970................ 74.0 34.8 39.3 24.7 14.6 56.0 1971'............. 83.6 37.5 46.1 25.0 21.1 60.4 1973—1'... 120.4 48.9 71.5 28.7 42.8 69.2 1972 '............. 99.2 41.5 57.7 27.3 30.3 66.3 II'... 124.9 50.9 74.0 29.1 44.9 70.8 1973 '............. 122.7 49.8 72.9 29.6 43.3 71.2 III'.. 122.7 49.9 72.9 29.8 43.1 71.6 IV'.. 122.7 49.5 73.2 30.7 42.5 73.1 1974—I'. .. 138.7 53.6 85.1 31.6 53.5 74.1 Up. . 150.4 59.4 91.1 32.5 58.5 75.7 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt, i Govt.1 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 Period Total Durable d N ur o a n bl ­ e 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 ­ Other i T A (S o . . R A ta . . ) l 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 II................. 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill 2............. 28.02 5.78 5.64 .77 .60 .49 .70 4.49 .86 8.70 113.00 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 □ SEPTEMBER 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 II III IV I II ALL HOLDERS................................................. 451,726 499,758 565,196 600,197 619,996 635,137 646,280 663,324 1- to 4-family.................................................... 280,175 307,200 345,500 366,202 378,382 386,489 392,053 402,053 Multifamily1..................................................... 58,023 67,367 76,585 81,130 83,521 85,394 86,760 88,425 Commercial....................................................... 82,292 92,333 107,673 115,150 119,504 123,855 127,228 131,275 Farm................................................................... 31,236 32,858 35,438 37,715 38,589 39,399 40,239 41,571 PRIVATE FINANCIAL INSTITUTIONS.. 355,929 394,239 450,371 480,242 495,044 505,583 514,110 527,251 1- to 4-family.................................................... 231,317 253,540 288,169 307,423 316,754 322,296 327,146 335,332 Multifamily1..................................................... 45,796 52,498 59,293 62,429 63,566 64,723 65,555 66,750 Commercial....................................................... 68,697 78,345 92,387 99,364 103,429 107,018 109,891 113,338 Farm................................................................... 10,119 9,856 10,522 11,026 11,295 11,546 11,518 11,831 Commercial banks2.......................................... 73,275 82,515 99,314 109,114 114,788 119,068 121,668 125,968 1- to 4-family................................................ 42,329 48,020 57,004 62,181 65,484 67,998 69,351 71,802 Multifamily1................................................. 3,311 3,984 5,778 6,469 6,745 6,932 7,178 7,432 Commercial................................................... 23,284 26,306 31,751 35,224 37,181 38,696 39,664 41,066 Farm............................................................... 4,351 4,205 4,781 5,240 5,378 5,442 5,475 5,668 Mutual savings banks...................................... 57,948 61,978 67,556 70,634 72,034 73,231 73,957 74,264 1- to 4-family................................................ 37,342 38,641 41,650 43,003 43,738 44,247 44,462 44,426 Multifamily1................................................. 12,594 14,386 15,490 16,394 16,567 16,843 17,011 17,081 Commercial................................................... 7,893 8,901 10,354 11,178 11,670 12,084 12,425 12 698 Farm............................................................... 119 50 62 59 59 57 59 59 Savings and loan associations........................ 150,331 174,250 206,182 222,580 229,182 232,104 236,514 243,791 1- to 4-family............................................... 124,970 142,275 167,049 180,423 185,706 188,051 191,529 197,349 Multifamily1................................................. 13,830 17,355 20,783 21,880 22,391 22,561 22,800 23,379 Commercial................................................... 11,531 14,620 18,350 20,277 21,085 21,492 22,185 23,063 Life insurance companies................................ 74,375 75,496 77,319 77,914 79,040 81,180 81,971 83,228 1- to 4-family................................................ 26,676 24,604 22,466 21,816 21,826 22,000 21,804 21,755 Multifamily1................................................. 16,061 16,773 17,242 17,686 17,863 18,387 18,566 18,858 Commercial.................................................. 25,989 28,518 31,932 32,685 33,493 34,746 35,617 36,511 Farm............................................................... 5,649 5,601 5,679 5,727 5,858 6,047 5,984 6,104 FEDERAL AND RELATED AGENCIES.. 32,992 39,357 45,790 48,991 53,008 55,664 58,430 62,533 1- to 4-family.................................................... 21,993 26,453 30,147 31,276 33,725 35,454 37,168 39,782 Multifamily1.................................................... 3,359 4,555 6,086 7,128 8,171 8,489 8,923 9,643 Commercial....................................................... 16 11 Farm................................................................... 7,624 8,338 9,557 10,587 11,112 11,721 12,339 13,108 Government National Mortgage Association 5,222 5,323 5,113 3,908 4,429 4,029 3,604 3,618 1- to 4-family................................................ 2,902 2,770 2,490 1,300 1,462 1,330 1,189 1,194 Multifamily1................................................. 2,304 2,542 2,623 2,608 2,967 2,699 2,415 2,424 Commercial.................................................. 16 11 Farmers Home Administration...................... 767 819 837 900 1,000 1,200 1,300 1,400 1- to 4-family................................................ 330 398 387 430 480 550 596 642 Farm............................................................... 437 421 450 470 520 650 704 758 Federal Housing and Veterans Administra­ tions ............................................................ 3,505 3,389 3,338 3,293 3,446 3,476 3,514 3,617 1- to 4-family................................................ 2,111 2,517 2,199 1,998 2,046 2,013 1,964 1,978 Multifamily1................................................. 734 872 1,139 1,295 1,400 1,463 1,550 1,639 Federal National Mortgage Association.... 15,502 17,791 19,791 21,413 22,831 24,175 24,875 26,559 1- to 4-family................................................ 15,181 16,681 17,697 18,521 19,479 20,370 20,516 21,691 Multifamily1................................................. 321 1,110 2,094 2,892 3,352 3,805 4,359 4,868 Federal land banks (farm only)................... 7,187 7,917 9,107 10,117 10,592 11,071 11,635 12,350 Federal Home Loan Mortgage Corporation. 357 964 1,789 2,029 2,423 2,604 2,637 3,191 1- to 4-family................................................ 357 934 1,754 1,973 2,294 2,446 2, All 2,951 Multifamily1................................................ 30 35 56 129 158 165 240 GNMA Pools.................................................... 452 3,154 5,815 7,331 8,287 9,109 10,865 11,798 1- to 4-family................................................ 452 3,153 5,620 7,054 7,964 8,745 10,431 11,326 Multifamily1................................................. 1 195 277 323 364 434 All INDIVIDUALS AND OTHERS3................. 62,805 66,162 69,035 70,964 71,944 73,890 73,740 73,540 1- to 4-family.................................................... 26,865 27,207 27,184 27,503 27,903 28,739 27,739 26,939 Multifamily1..................................................... 8,868 10,314 11,206 11,573 11,784 12,182 12,282 12,032 Commercial....................................................... 13,579 13,977 15,286 15,786 16,075 16,837 17,337 17,937 Farm................................................................... 13,493 14,664 15,359 16,102 16,182 16,132 16,382 16,632 1 Structure of five or more units. Note.—Based on data from various institutional and Government 2 Includes loans held by nondeposit trust companies but not bank trust sources, with some quarters estimated in part by Federal Reserve in departments. conjunction with the Federal Home Loan Bank Board and the Dept, of 3 Includes some U.S. agencies for which amounts are small or separate Commerce. Separation of nonfarm mortgage debt by type of property, data are not readily available. where not reported directly, and interpolations and extrapolations where required, estimated mainly by Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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—July.. 21,772 15,877 5,574 516 1,102 9,859 2,158 1,714 140 139 278 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 June. 26,559 17,966 7,079 770 537 9,019 3,191 1,877 1,314 222 628 2,598 July. 27,304 18,250 7,384 886 1,175 9,044 3,309 1,883 1,426 129 1,127 3,583 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- Terms1 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^ cent) (per cent)2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series 3 series4 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 8.30 1973—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 1.35 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 Juner............... 8.65 1.25 26.3 76.9 39.7 30.1 8.85 9.25 9.46 July................. 8.75 1.28 26.1 74.4 40.5 29.6 8.96 9.40 9.85 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 □ SEPTEMBER 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 Mar. 25 Apr. 8 Apr. 22 May 6 May 20 June 3 June 17 July 1 July 15 July 29 Aug. 12 Aug. 26 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................... 1,154.7 1,061.4 333.6 256.0 217.7 85.1 38.5 271.7 379.5 151.6 207.9 309.6 Accepted.................................. 332.5 267.0 168.5 111.1 82.8 71.5 31.5 103.0 193.5 73.4 97.7 93.0 Conventional loans Offered1................................... 126.3 163.9 80.3 74.3 41.4 26.1 21.6 39.7 60.4 36.8 45.8 59.0 Accepted.................................. 34.2 63.3 40.9 29.8 23.6 20.5 11.2 23.6 29.9 18.1 19.4 24.9 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 8.62 8.95 9.18 9.34 9.48 9.54 9.54 9.65 9.90 9.98 10.12 10.38 Conventional loans................... 8.64 9.00 9.21 9.44 9.63 9.70 9.69 9.76 9.90 10.02 10.16 10.42 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 require­ paid 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, Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, Holder 1971 1972 1973 1973 1973 1973 1974 All holders..................... 120.8 131.1 132.4 133.6 133.8 135.0 136.7 FHA............................ 81.3 86.4 86.6 86.4 85.6 85.0 85.0 VA............................... 39.5 44.7 45.8 47.2 48.2 50.0 51.7 Commercial banks 11.3 11.7 11.7 11.7 11.7 11.5 11.6 FHA............................ 8.3 8.5 8.5 8.5 r8.4 8.2 8.3 VA............................. 3.0 3.2 3.2 3.2 '3.3 3.3 3.3 Mutual savings banks. 28.2 28.6 28.7 28.7 28.6 28.4 28.8 FHA.......................... 16.1 16.0 15.9 15.8 15.7 15.5 15.7 VA............................. 12.1 12.6 12.8 12.9 12.9 12.9 13.1 Savings and loan assns. 24.3 28.9 F V H A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 0 . . 7 6 1 1 5 3. . 5 4 29.5 29.8 30.1 29.7 29.8 Life insurance cos........ 15.8 14.7 14.4 14.0 13.7 13.6 13.3 FHA.......................... 10.8 10.0 9.8 9.5 9.3 9.2 9.0 VA............................. 5.0 4.7 4.6 4.5 4.4 4.4 4.3 Others........................... 41.2 47.2 48.2 49.4 50.0 52.1 53.2 FHA.......................... 32.4 36.5 VA............................. 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 Period o N f u l m oa b n e s r ( c m o ( a i d m m l o l m i o l o l u a i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u a l n a n n r t d s s ) ( C p in o e r t r n a e t c r t 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 i r t n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 197 0 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 197 1 1,664 3.982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 197 2 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

SEPTEMBER 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 loansi loans Retail Credit outlets cards2 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—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 9,495 176,969 145,400 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 June.......... 183,425 150,615 51,641 48,099 7,930 42,945 32,810 13,311 7,002 2,104 10,393 July........... 184,805 152,142 52,082 48,592 8,068 43,400 32,663 13,192 6,936 2,204 10,331 1 Holdings of financial institutions; holdings of retail outlets are in- Note.—Consumer credit estimates cover loans to individuals for eluded 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 “Conheating-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 MobilePurchaCsreeddit DireOctther loans Check Other loans homes cards credit ------------✓ 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—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 June.......... 83,417 71,615 19,220 12,169 7,564 7,076 6,420 4,224 2,230 12,712 11,802 July........... 84,078 72,384 19,377 12,250 7,623 7,222 6,484 4,316 2,266 12,846 11,694 See also Note to table at top of page- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 CONSUMER CREDIT □ SEPTEMBER 1974 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 i 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,'115 174 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—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 June............. 38,159 11,957 3,449 4,626 1,114 17,013 23,630 20,501 3,129 17,211 296 16,915 July.............. 38,479 12,040 3,505 4,664 1,118 17,152 23,968 20,825 3,143 17,311 297 17,014 i Savings 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.) Used 1972—July.. 9.97 10.77 12.39 12.73 17.25 11.84 16.57 12.25 19.38 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 18.90 21.22 Dec.. 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 12.54 18.92 20.79 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 18.93 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 i 8.69 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 13.12 18.77 20.65 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 13.15 18.69 20.57 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 June. 10.81 11.21 13.01 13.20 17.23 12.50 17.07 13.07 18.90 20.57 July.. 10.94 11.46 13.14 13.42 17.23 12.58 17.19 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

SEPTEMBER 1974 o 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—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 June................. 14,387 3,731 6,043 425 4,188 6,076 3,729 2,040 2,542 July................. 14,635 3,812 6,164 416 4,243 6,129 3,685 2,201 2,620 Repayments 1966 77,480 25,619 24,080 2,118 25,663 27,716 24,952 9,342 15,470 1967. 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 1968, 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 1969, 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 1970, 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20,742 1971 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 1972 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 1973 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1973--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 June................ 13,301 3,577 5,615 335 3,774 5,564 3,405 1.835 2,497 July................. 13,310 3,563 5,610 320 3,817 5,541 3,513 1,819 2,437 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—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 June................. 1,086 154 428 90 414 512 324 205 45 July................. 1,325 249 554 96 426 588 172 382 183 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. □ SEPTEMBER 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro­ aver­ por­ Grouping age tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Aug. Total index........................................ 100.0 125.6 126.5 126.8 127.0 127.5 126.5 125.4 124.6 124.7 124.9 125.7 125.8 125.7 125.2 Products, total...................................... 62.21 123.4 123.7 124.3 124.3 125.3 124.0 122.9 122.4 122.6 122.7 123.8 124.0 124.2 122.9 Final products.................................... 48.95 121.3 121.4 122.4 122.7 123.7 122.6 121.2 120.6 121.0 120.8 122.4 122.5 122.9 121.3 Consumer goods........................... 28.53 131.7 131.2 132.3 132.6 133.5 131.3 129.2 128.3 128.5 128.5 129.7 130.0 130.2 129.9 Equipment..................................... 20.42 106.7 107.6 108.5 108.9 110.1 110.1 109.8 109.9 110.1 110.1 112.2 112.1 121.5 109.4 Intermediate products..................... 13.26 131.1 132.1 131.0 130.6 131.1 129.1 129.2 129.1 128.2 129.4 129.2 129.3 128.8 128.6 Materials................................................ 37.79 129.3 130.9 131.3 131.1 131.5 130.7 129.7 128.3 128.8 128.7 129.1 129.1 128.4 128.9 Consumer goods Durable consumer goods...................... 7. 139.0 134.0 138.2 137.3 138.5 134.6 128.2 126.4 128.5 130.9 132.8 132.7 133.0 130.8 Automotive products....................... 2.84 136.8 121.1 129.8 131.4 133.7 120.6 108.0 106.6 108.0 113.8 116.1 114.9 115.9 116.5 Autos.............................................. 1.87 125.4 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 100.3 99.6 101.5 103.1 Auto parts and allied goods.... .97 158.9 154.2 151.8 148.4 150.9 147.8 142.6 145.5 149.8 144.7 146.5 144.0 143.7 142.0 Home goods.......................................... 5.02 140.3 141.1 142.9 140.9 141.2 142.5 139.6 137.5 140.1 140.6 142.3 142.7 142.4 138.8 Appliances, TV, and radios........... 1.41 144.8 146.3 149.4 143.4 140.4 147.9 138.4 131.9 135.8 135.2 137.7 139.3 138 Appliances and A/C............... .92 156.9 153.3 159.8 159.3 154.7 172.2 153.9 148.2 150.0 148.6 152.6 154.9 154.0 TV and home audio................ .49 Carpeting and furniture................. 1. 150.0 154.2 153.3 153.9 152.7 150.1 153.5 153.3 154.5 158.2 157.4 158.1 158.3 Misc. home goods........................... 2.53 133.6 132.9 134.8 134.1 136.8 136.3 134.4 134.2 136.3 136.0 138.3 138.2 137.9 134.5 Nondurable consumer goods............... 20.67 129.0 130.2 130.1 130.8 131.5 130.2 129.5 129.1 128.7 127.6 128.5 129.0 129.1 129.5 Clothing............................................. 4.32 116.0 117.0 118.0 116.8 117.3 120.3 116.3 114.5 112.0 106.2 107.0 108.1 Consumer staples............................. 16.34 132.4 133.6 133.2 134.5 135.2 132.8 133.0 133.0 133.1 133.2 134.2 134.5 134.8 135.4 Consumer foods and tobacco.. 8.37 122.2 121.9 122.2 123.3 126.5 125.0 126.9 125.9 125.7 123.9 124.7 125.1 125.5 126.2 Nonfood staples........................... 7.98 143.1 145.8 144.8 146.2 144.3 141.1 139.4 140.4 140.8 143.1 144.3 144.3 144.6 145.0 Consumer chemical products 2.64 153.3 155.6 153.4 156.2 154.9, 156.7 157.8 159.0 160.3 159.7 157.5 156.6 154.1 Consumer paper products..., 1.91 121.3 124.1 124.4 122.5 123.6 120.5 119.4 119.9 119.1 119.4 124.7 123.9 124.5 Consumer fuel and lighting., 3.43 147.5 150.4 149.7 151.9 147.8 140.7 136.7 137.4 138.2 143.7 145.1 146.1 148.4 Residential utilities............. 2.25 156.8 160.0 160.9 161.9 158.0 149.8 145.6 148.6 149.0 151.6 153.2 155.4 Equipment Business equipment............................. 12.74 122.6 124.6 125.8 126.2 127.8 126.9 126. 127.3 127.6 127.9 130.2 130.3 130.4 128.2 Industrial equipment..................... 6.77 120.1 122.5 124.1 124.5 125.6 124.9 125.3 126.6 126.8 127.6 129.6 129.4 129.7 129.5 Building and mining equip. 1.45 120.4 123.0 123.7 124.7 126.0 126.0 128.5 130.3 131.3 133.5 135.0 136.0 136.0 136.5 Manufacturing equipment 3.85 113.0 115.1 117.3 117.3 118.2 118.5 119.3 120.6, 121.1 122.1 124.1 123.2 123.5 122.9 Power equipment....................... 1.47 138.5 141.0 142.3 143.0 144.6 140.3 138.0 138.7 137.3 136.6 138.4 139.0 140.0 139.1 Commercial, transit, farm eq.... 5.97 125.5 127.0 127.7 128.1 130.3 129.2 128.5 128.2 128.7 128.2 130.9 131.5 131.2 126.8 Commercial equipment............. 3.30 135.0 137.0 138.2 140.1 141.3 139.3 139.8 139.8 140.8 140.4 141.5 142.7 141.4 138.4 Transit equipment..................... 2.00 109.8 108.4 109.6 109.8 111.4 111.1 109.5 109.3 109.4 106.7 110.2 110.4 111.4 103.4 Farm equipment......................... .67 125.1 132.8 129.4 123.5 132.4 133.4 129.2 126.0 126.1 131.2 140.2 140.6 139.6 Defense and space equipment........... 7.68 80.2 79.7 79.8 80.0 80.9 81.9 81.4 80.9 81.0 80.6 82.2 81.6 82.8 78.1 Military products........................... 5.15 80.3 79.0 79.1 79.3 80.0 81.3 80.6 80.2 80.5 79.9 81.2 79.6 81.5 81.2 Intermediate products Construction products....................... 5.93 134.2 135.3 134.9 134.3 133.7 131.1 133.0 131.3 129.6 130.8 130.8 130.1 129.6 128.6 Misc. intermediate products............ 7.34 128.6 129.6 128.1 127.5 129.0 127.4 126.3 127.4 127.5 128.2 127.9 128.6 128.2 Materials Durable goods materials..................... 20.91 130.1 131. 132.3 132.2 133.0 132.7 129.8 127.3 127.2 127.3 128.3 127.9 126.7 128.2 Consumer durable parts............... 4.75 127.8 128.6 129.9 128.2 128.4 121.0 113.0 109.3 110.6 112.5 114.7 113.5 113.8 116.5 Equipment parts............................. 5.41 119.3 122.3 122.1 122.7 125.8 125.3 123.9 122.6 121.6 120.1 122.5 122.1 121.2 122.5 Durable materials nec................... 10.75 136.5 138.0 138.7 139.0 138.7 141.6 140.0 137.6 137.5 137.5 137.2 137.2 135.0 136.2 Nondurable goods materials.............. 13.99 129.1 130.6 130.3 130.1 130.7 129.2 131.1 131.1 131.9 131.9 130.9 131.5 131.1 131.2 Textile, paper, and chem. mat..., 8.58 139.8 142.4 141.9 141.4 142.4 140.1 143.4 141.7 143.1 143.9 143.3 143.7 144.0 143.9 Nondurable materials n.e.c.......... 5.41 112.2 111.7 112.0 112.3 112.1 111.9 111.7 114.3 114.7 112.7 111.4 112.2 111.0 111.1 Fuel and power, industrial............... 2.89 123.9 126.3 128.3 126.9 124.9 123.1 121.5 122.5 122.6 123.2 124.7 126.5 127.2 123.2 Supplementary groups Home goods and clothing................ 9.34 129.0 130.0 131.3 129.8 130.2 132.4 128.8 126.9 127.0 124.6 126.0 126.7 126.2 124.2 Containers............................................ 1.82 139.9 140.5 139.8 141.2 142.3 141.0 148.4 144.3 151.4 147.0 141.5 141.9 141.4 Gross value of products in market structure (In billions of 1963 dollars) Products, total................................ 286.3 449. 446.2 449.8 452.6 456.9 449.1 445.4 442.5 443.9 445.4 449.5 449.4 448. 444.2 Final products.......................... 221.4 346.1 341.9 346.3 349.7 353.3 346.9 342.5 339.9 342.3 342.9 347.2 347.3 346.7 342.7 Consumer goods.................. 156.3 239.7 235.4 239.0 241.7 243.6 237.8 233.6 230.6 232.7 233.8 235.9 236.1 235.3 235.5 Equipment............................. 65.3 106.4 106.6 107.3 108.0 109.5 109.0 108.9 109.1 109.4 109.0 111.2 111.3 111.2 107.5 Intermediate products............. 64.9 103.7 104.6 103.5 103.1 103.6 102.5 103.1 102.6 101.9 102.5 102.2 102.1 102.3 101.7 For Note see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) 1 p 9 r 6 o 7 ­ 1973 1973 1974 Grouping p ti o o r n ­ a a v g e e r­ Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July*> Aug. Manufacturing..................................... 88.55 125.2 126.1 126.3 126.4 127.4 126.4 125.3 124.5 124.6 124.8 125.7 125.9 125.8 125.0 Durable............................................ 52.33 122.1 122.6 123.3 123.5 124.3 123.1 121.1 119.4 120.4 120.7 122.1 122.4 122.4 120.8 Nondurable..................................... 36.22 129.6 130.9 130.7 130.4 131.3 131.2 131.4 131.5 130.9 130.4 130.9 130.9 130.7 131.2 Mining and utilities.......................... 11.45 128.9 130.7 131.3 131.5 130.6 126.9 125.4 126.9 127.3 127.8 128.0 128.3 128.6 127.7 Mining.............................................. 6.37 110.2 111.5 111.8 111.9 111.3 110.4 109.9 111.7 112.2 111.3 111.0 110.6 110.3 108.1 Utilities............................................ 5.08 152.3 154.8 155.8 156.2 154.6 147.6 144.9 146.1 146.5 148.7 149.2 150.5 151.5 152.5 Durable manufactures Primary and fabricated metals. 12.55 128.8 129.5 129.5 130.6 131.0 130.5 130.4 127.6 128.2 127.5 128.1 129.1 128.6 127.3 Primary metals............................... 6.61 127.1 125.6 127.8 128.7 128.9 130.7 129.5 125.0 125.3 124.0 124.6 126.5 125.6 124.9 Iron and steel, subtotal............ 4.23 121.6 118.5 122.7 123.6 124.2 127.7 125.5 119.4 119.6 116.4 118.0 120.0 120.5 121.2 Fabricated metal products.......... 5.94 130.7 133.8 131.5 132.4 133.1 130.0 131.4 130.6 131.6 131.3 131.9 131.9 131.9 130.0 Machinery and allied goods............. 32.44 117.3 117.7 118.9 118.9 119.9 118.6 115.2 113 114.8 115.5 117.5 117.7 117.5 116.3 Machinery...................................... 17.39 125.9 128.5 130.0 129.2 130.4 130.9 128.6 127.2 128.4 128.2 129.7 130.7 130.4 128.0 Nonelectrical machinery......... 9.17 125.1 128.9 130.0 130.0 130.3 130.2 129.4 128.1 129.8 130.7 131.9 132.5 132.0 133.0 Electrical machinery................ 8.22 126.8 128.2 129.8 128.5 130.5 131.6 127.7 126.2 126.8 125.3 127.4 128.9 128.6 122.4 Transportation equipment......... 9.29 109.2 105.7 107.3 108.8 109 103.0 95.7 93.9 95.0 97.8 100.6 99.5 98.9 98.8 Motor vehicles and parts 4.56 138.1 131.0 133.9 136.4 137.8 124.6 112.7 109.2 110.2 116.4 119.6 117.0 117.3 116.3 Aerospace and misc. trans. eq 4.73 81.4 81.3 81.7 82.3 82.9 82.2 79.3 79.3 80.3 80.0 82.4 82.6 81.2 81.7 Instruments.................................... 2.07 138.4 140.9 141.5 141.0 142.6 142.7 143.0 142.8 142.8 143.8 146.1 147.5 146.7 147.4 Ordnance, private and Govt. 3.69 85.4 83.8 83.7 83.8 84.3 86.1 85.2 84.2 84.9 84.3 86.1 86.3 87.2 87.2 Lumber, clay, and glass................... 4.44 129.5 129.2 128.8 129.7 129.3 127.8 129.7 127.4 128.1 128.9 128.0 127.1 127.6 124.9 Lumber and products................. 1.65 128.9 128.4 128.9 127.4 127.3 126.3 126.1 127.1 126,1 126.8 126.8 125.6 125.6 Clay, glass, and stone products. 2.79 129.9 129.6 128. 131.2 130.4 128.7 131.8 127.6 129.3 130.3 128.7 127.8 128.8 Furniture and miscellaneous............ 2.90 135.2 137.5 138.2 136.1 136.4 135.3 133.4 135.2 136.8 136.8 138.9 138.9 140.3 136.3 Furniture and fixtures................. 1.38 126.3 129.5 130.4 128.8 127.9 124.9 124.2 125.4 126.8 128.8 129.7 131.9 133.6 Miscellaneous manufactures. 1.52 143.3 144.9 145.3 142.9 144.3 144.5 141.8 144.2 145.8 144.1 147.3 145.3 146.3 Nondurable manufactures Textiles, apparel, and leather......... 6. 114.7 115.4 117.5 116.8 116.7 118.8 116.2 115.3 112.4 109.3 109.8 108.8 108.2 108.4 Textile mill products................... 2.69 127.1 129.0 130.2 130.2 129.4 130.9 128.4 127.6 125.0 123.4 124.0 124.5 124.0 Apparel products......................... 3.33 112.9 113.6 115.4 114.9 115.3 118.5 116.4 113.6 110.0 105.8 105.0 103.4 Leather and products.................. 83.6 81.0 86.4 83.1 82.9 82.9 77.6 83.7 83.0 79.5 83.9 81.6 72.1 Paper and printing............................ 7.92 122.1 124.5 122.1 121.3 121.9 121.2 121.7 122.2 122.5 121.2 121.3 122.7 123.0 124.3 Paper and products..................... 3.18 135.4 137.0 134.8 135.3 136.2 136.7 138.7 137.6 140.2 135.4 135.1 136.7 136.8 Printing and publishing............... 4.74 113.2 116.2 113.6 112.1 112.3 110.8 110.4 111.9 110.7 111.7 111.9 113.3 113.8 lil.i Chemicals, petroleum, and rubber. 11.92 149.3 151.0 150.9 151,1 151.6 151.6 151.5 151.2 151.3 153.5 153.0 153.5 153.3 153.6 Chemicals and products............. 7.86 150.1 151.4 153.0 152.7 153.0 154.5 154.9 155.3 155.5 156.2 156.2 156.9 155.7 156.4 Petroleum products..................... 1.80 127.4 128.2 126.0 130.4 129.5 125.5 120.5 116.9 117.3 126.9 126.1 125.3 127.9 126.7 Rubber and plastics products... 2.26 164.0 167.9 163.6 161.9 164.5 162.3 164.3 163.5 164.2 165.5 163.7 164.5 165.0 Foods and tobacco............................ 9.48 121.9 122.0 122.2 121.7 124.7 123.0 125.4 126.2 125.3 124.3 126.5 125.4 124. 125.4 Foods.............................................. 8.81 122.7 122.9 123.2 122.4 125.4 124.5 126.3 127.2 126.5 125.9 127.8 126.7 126.0 126.5 Tobacco products......................... .67 111.6 110.1 109.1 113.7 115.8 104.2 113.3 112.1 110.4 104.6 109.4 108.7 Mining Metal, stone, and earth minerals... 1.26 118.1 120.6 120.4 120.9 121.3 122.0 121.4 119.9 119.7 U7.5 117.9 112.4 113 108.9 Metal mining................................ .51 130.8 131.4 136.6 138.3 135.2 135.2 135.2 132.2 132.9 127.4 128.1 120.6 120.4 Stone and earth minerals........... .75 109.5 113.1 109.5 109.2 111.7 113.1 111.9 111.6 110.7 110.7 111.0 106.7 109.3 Coal, oil, and gas.............................. 5.11 108.3 109.2 109.5 109.7 108.8 107.5 107.0 109.6 110.2 109.8 109.2 110.1 109.4 107.8 Coal................................................. .69 103 104.0 109.8 103.0 104.1 110.4 108.7 112.7 114.7 110.3 112.4 118.3 115.6 100.7 Oil and gas extraction................. 4.42 109.0 110.0 109.7 110 109.6 107.0 106.8 109.1 109.5 109.7 108.8 108.8 108.4 108.9 Utilities Electric................................................ 3.91 160.7 163.8 165.1 165.3 163.4 155.6 154.6 155.1 158.3 159.0 160.4 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 □ SEPTEMBER 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing - In­ Ca­ Market dustry pacity Con­ N ri o c n u a l­ g­ Period Total Products u i t n i t i o m l n iz f g a­ . st t r io u n c­ t e u m ra ­ l T re o t t a a i l l Whole­ Total C Fi o n n a ­ l m In ed te ia r­ te M ri a a t ls e­ f M a i c a n t n g u u r­ ­ o = ( u 1 1 t 9 p 0 6 u 0 7 ) t tr c a o c n ts ­ T m p o l e o t n a y t l — ­ 1 p m E lo m en y ­ t ­ P ro a l y ls ­ sales3 s C um on e ­ r m c s o o a d m le it ­ 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 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72. 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86. 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. 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 1 106 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 197 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—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. 124.3 122.4 132.3 108 131.0 131.3 126.3 182.0 115.3 102.1 149.8 163 135.5 139.7 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. 127 125.3 123.7 133.5 110.1 131.1 131.5 127.4 82.6 194.0 116.4 103.3 155.8 164 137.6 139.2 Dec.. 126.5 124.0 122.6 131 110.1 129.1 130.7 126.4 161.0 116.4 103.2 153.7 161 138.5 141.8 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 80.5 187.0 116.6 101.8 151.1 165 141.5 149.5 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., 124.9 122 120. 128.5 110.1 129.4 128.7 179.0 116.8 101.9 147.9 169 144.0 152.7 May, 125.7 123.8 122.4 129.7 112 129.2 129.1 125.7 80.6 188.0 102.0 154.4 172 145.6 155.0 June, 125. 124.0 122.5 130.0 112.1 129.3 129.1 125.9 166.0 102.0 155.5 170 147.1 155.7 July. 125.7 124.2 122.9 130.2 112.5 128.8 128.4 125.8 177.0 101.7 156.6 177 148.3 161.7 Aug. 125.2 122 121 129.9 109.4 128.6 128.9 125.0 100.8 158.1 178 167.4 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. Note.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; Capacity utilization: Based on data from Federal Reserve, McGraw- includes data for Alaska and Hawaii beginning with 1959. Hill Economics Department, and Dept, of Commerce. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1973 1974 Type of ownership and 1972 1973 type of construction July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction i............................ 90,979101,071 9,228 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911 8,929 10,158 8,480 9,295 By type of ownership: Public............................................ 24,043 26,686 2,581 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481 2,336 3,082 2,968 3,242 Private 1....................................... 66,936 73,385 6,647 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430 6,593 7,076 5,512 6,053 By type of construction: Residential building 1............... 44,975 46,246 4,224 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374 3,924 3,862 3,546 3,350 Nonresidential building............ 27,021 31,761 2,991 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752 2,842 3,120 2,989 3,698 Nonbuilding................................ 18,983 22,064 2,013 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785 2,163 3,176 1,945 2,247 Private housing units authorized... 2,219 1,820 1,814 1,777 1,656 1,379 1,361 1,285 1,282 1,325 1,410 1,296 1,120 1,106 1,043 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, McGraw-Hill Informations Systems Company, F.W. Dodge Division. some totals are not strictly comparable with those prior to 1968. To im­ Totals of monthly data exceed annual totals because adjustments— prove comparability, earlier levels may be raised by approximately 3 per negative—are made in accumulated monthly data after original figures cent for total and private construction, in each case, and by 8 per cent for have been published. residential building. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems; 1971 data are for NorE.—Dollar value of construction contracts as reported by the 13,000 reporting areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Indus­ Com­ Other Other Total tary way de m v an e e d n lo t p­ Other 2 trial mercial b in u g i s ld 1 ­ 1962 3 . ... 59,965 42,096 25,150 16.946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 ___ 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1,750 10,590 1965 73,412 51,350 27,934 23.416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 93,368 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 15,489 197 1 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,077 93,893 54,288 39,605 4,676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 197 3 135,437 102,875 57,604 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 1973—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—Jan.. 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. 135,483 99,045 49,209 49,836 7,500 16,652 6,336 19,348 36,438 1,401 Apr.. 137,786 98,832 49,558 49,274 6,920 16,296 6,264 19,794 38,954 '1,505 May’ 139,938 99,664 49,718 49.946 7,606 16,408 5,890 20,042 40,274 1,181 June. 138,054 99,755 49,340 50,415 8,027 16,425 6,034 19,929 38,299 1,163 JulyP 137.172 97,537 48,735 48,802 7,167 15,434 6,086 20,115 39,635 1,192 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data; monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R .) Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 f - a m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1963............................ 1,603 261 328 591 430 1,012 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—July................. 2,152 245 475 1,020 412 1,232 144 776 203 203 1 20 12 8 49 Aug................. 2,03ft 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................ 1,499 212 332 620 335 962 87 450 127 125 2 14 8 6 37 Apr................. 1,630 195 327 749 359 996 88 546 161 160 1 13 6 7 42 May r............. 1,471‘ 177 312 633 348 931 95 445 150 149 1 17 10 8 41 June............... 1,590 255 398 607 330 1,012 73 505 149 147 2 15 8 7 39 July?.............. 1,335 154 341 540 300 941 81 313 127 126 1 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 □ SEPTEMBER 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n ( o s o N t p t i a t u .S u l l t a . n i A t o o i . o n n ) a n - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e r . l ) Total Total E In m c n u p o l l t n o u a y ra g e l r d i 1 ­ agric I u n lture U pl n o e y m ed ­ U (p n e e m r S a r m . e A t c e n p e . 2 t l ) n o t y ; ­ 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—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 July................. 150,922 55,426 93,387 91,167 86,312 82,907 3,405 4,855 5.3 Aug................. 151,135 56,456 93,281 91,061 86,187 82,744 3,443 4,874 5.4 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 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971............................................................... 70,645 18,529 602 3,411 4,442 15,142 3,796 11,869 12,856 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—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 Mav.................................................. 77,136 19.942 664 3,662 4,664 16,594 4,145 13,329 14,136 June.................................................. 77,101 19,961 665 3,599 4,653 16,602 4,140 13,365 14;116 July*................................................ 77,100 19,915 668 3,522 4,643 16,664 4,133 13,378 14,177 Aug.*................................................ 77,177 19,801 665 3,544 4,642 16,661 4,143 13,449 14,272 NOT SEASONALLY ADJUSTED 1973—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.................................................. 77,225 19,825 664 3,658 4,664 16,535 4,141 13,422 14,316 June.................................................. 77,897 20,107 679 3,779 4,718 16,677 4,181 13,552 14,204 July*................................................ 76,958 19.833 682 3,765 4,699 16,631 4,199 13,539 13,610 Aug.*............................................... 77,128 20,008 680 3,838 4,684 16,587 4,201 13,557 13,573 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

SEPTEMBER 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 o n m e e r­ ­ F a o u n i e d l l e G a l n e a c d s ­ n i a n i n s g h d s ­ up a k n e d ep p t o io rt n a­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O a o t n o h d d e s r ship coal tricity opera­ care care recrea­ serv­ tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973............................ 133.1 141.4 135.0 124.2 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1973—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................. 144.0 158.6 146.0 128.8 158.2 206.5 141.9 134.0 133.6 134.4 136.3 145.6 133.1 130.4 133.6 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 June............... 147.1 160.3 149.2 129.8 161.2 214.2 144.5 139.2 135.7 140.7 139.4 149.4 136.5 133.5 135.8 July................. 148.3 160.5 150.9 130.3 163.2 218.5 146.2 141.4 135.3 142.6 141.0 151.4 137.8 134.6 137.7 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 o n e s d d d e s d s Total t T e il e t e c x s . - , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b et u e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n r u i y a d n ip ­ ­ ­ F t e u u t r r c e n . , i­ N t m m al o i l e n n i ­ c ­ ­ T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l u s a ­ s ­ erals ment! ment I960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 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—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 July.................... 161.7 180.8 167.6 157.8 142.1 146.6 221.7 148.4 139.5 188.6 153.3 180.3 140.3 128.2 156.4 125.1 135.2 Aug.................... 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.. 8 157.6 126.7 135.4 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME □ SEPTEMBER 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 II III IV F G i r n o a s l s p n u a r t c i h o a n s a e l s p ... r . o .. d ... u .. c .. t . . 1 1 0 03 1 . . 1 4 5 5 7 5 . .6 2 1 1 2 2 0 4 . . 1 5 2 2 8 7 4 8 . . 8 0 9 9 2 30 2 . . 3 5 9 9 7 7 7 2 . . 1 6 1 1, , 0 0 4 5 8 4 . . 6 91 1 , , 1 14 5 9 8 . .0 6 1 1 , , 2 2 9 79 4 . . 6 91 1 , ,2 27 6 7 7 . . 9 2 1 1 , , 3 2 0 9 8 7. .9 0 1 1. . 8 3 1 4 5 4 . . 1 01 1 . . 3 8 5 4 8 1 . . 8 9 1 1 , , 3 8 8 7 7 3 . . 3 8 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 799.0 816.3 823.9 840.6 869.1 Durable goods................................ 9.2 3.5 9.6 30.5 90.8 91.3 103.9 118.4 130.3 132.1 132.4 124.3 123.9 129.5 Nondurable goods......................... 37.7 22.3 42.9 98.1 245.9 263.8 278.4 299.7 338.0 332.7 343.8 352.1 364.4 375.8 Services............................................ 30.3 20.1 28.1 62.4 242.7 262.6 284.8 301.9 336. 334.2 340.1 347.4 352.4 363.8 Gross private domestic investment. 16.2 1.4 17.9 54.1 139.0 136.3 153.7 179.3 209.4 205.1 209.0 224.5 210.5 211.8 Fixed investment................................. 14.5 3.0 13.4 47.3 131.1 131.7 147.4 170.8 194.0 194.4 197.1 195.5 193.6 198.3 Nonresidential.................................. 10.6 2.4 9.5 27.9 98.5 100.6 104.6 116.8 136. 135.6 139.0 141.9 145.2 149.4 Structures..................................... 5.0 .9 2.9 9.2 34.2 36.1 37.9 41.1 47.0 46.2 47.9 49.3 51.3 52.2 Producers’ durable equipment. 5.6 1.5 6.6 18.7 64.3 64.4 66.6 75.7 89.8 89.4 91.1 92.6 93.9 97.2 Residential structures................... 4.0 .6 3.9 19.4 32.6 31.2 42.8 54.0 57.2 58.7 58.1 53.6 48.4 48.8 Nonfarm....................................... 3.8 .5 3.7 18.6 32.0 30.7 42.3 53.4 56.7 58.4 57.6 53.0 47.8 48.0 Change in business inventories........ 1.7 -1.6 4.5 6.8 7.8 4.5 6.3 8.5 15.4 10.7 11 28.9 16.9 13.5 Nonfarm.......................................... 1.8 -1.4 4.0 6.0 7.7 4.3 4.9 7.8 11.4 7.7 7.4 24.0 13.1 10.4 Net exports of goods and services. 1.1 .4 1.3 1.8 1.9 3.6 -.2 -6.0 3.9 .5 6.7 9.3 11.3 2.0 Exports.......................................... 7.0 2.4 5.9 13. 55.5 62.9 65.4 72.4 100.4 95.4 103.7 113.6 131.2 141.0 Imports.......................................... 5.9 2.0 4.6 12.0 53.6 59.3 65.6 78.4 96.4 94.9 96.9 104.3 119.9 139.0 Government purchases of goods and services. 8.5 8.0 24.8 37.9 210.0 219.5 234.2 255.7 276.4 273.3 276.9 286.4 296.3 304.4 Federal............................................................. 1.3 2.0 16.9 18.4 98.8 96.2 97.6 104.9 106.6 106.2 105.3 108.4 111.5 114.3 National defense........................................ 13.8 14.1 78.4 74.6 71.2 74.8 74.4 74.0 73.3 75.3 75. 76.6 Other............................................................. 3.1 4.3 20.4 21.6 26.5 30.1 32.2 32.2 32.0 33.1 35.7 37.7 State and local.......................................... 7.2 6.0 7.9 19.5 111.2 123.3 136.6 150.8 169.8 167.1 171.6 177.9 184.8 190.1 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 725.6 722.5 746.3 792.5 839.2 837.4 840.8 845.7 830.5 828.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business (generally the July issue) and the adjusted totals at annual rates. For back data and explanation of series, Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 II III IV I IIP National income.................................................... 86.8 40.3 104.2 241.1 766.0 800.5 857.7 946.51,065.61,051.21,077.31,106.31,118.81,137.1 51.1 29.5 64.8 154.6 566.0 603.9 643.1 707.1 786.0 776.7 793.3 814.8 828.8 848.3 50.4 29.0 62.1 146.8 509.7 542.0 573.6 626.8 691.6 683.6 698.2 717.0 727.6 744.6 Private............................................................ 45.5 23.9 51.9 124.4 405.6 426.9 449.5 491.4 545.1 538.7 550.8 565.8 573.8 588.3 .3 .3 1.9 5.0 19.0 19.6 19.4 20.5 20.6 20.3 20.2 21.0 21.0 20.9 Government civilian.................................... 4.6 4.9 8.3 17.4 85.1 95.5 104.7 114.8 126.0 124.5 127.2 130.2 132.8 135.4 .7 .5 2.7 7.8 56.3 61.9 69.5 80.3 94.4 93.1 95.1 97.7 101.2 103.7 Employer contributions for social in­ surance ....................................................... .1 .1 2.0 4.0 27.8 29.7 33.1 38.6 48.4 47.8 48.8 50.1 52.3 53.2 Other labor income..................................... .6 .4 .7 3.8 28.4 32.2 36.4 41.7 46.0 45.4 46.3 47.6 48.9 50.5 Proprietors’ income............................................. 15.1 5.9 17.5 37.5 67.2 66.9 69.2 75.9 96.1 92.8 99.3 103.2 98.4 89.9 9.0 3.3 11.1 24.0 50.5 50.0 52.0 54.9 57.6 57.1 57.7 58.4 59.3 60.7 Farm................................................................... 6.2 2.6 6.4 13.5 16.7 16.9 17.2 21.0 38.5 35.6 41.5 44.9 39.1 29.1 Rental income of persons.................................... 5.4 2.0 3.5 9.4 22.6 23.9 25.2 25.9 26.1 25.7 26.2 26.4 26.4 26.3 Corporate profits and inventory valuation adjustment.......................................................... 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.0 105.2 106.4 107.7 112.6 Profits before tax.............................................. 10.0 1.0 17.7 42.6 84.9 74.0 83.6 99.2 122.7 124.9 122.7 122.7 138.7 150.4 Profits tax liability....................................... 1.4 .5 7.6 17.8 40.1 34.8 37.5 41.5 49.8 50.9 49.9 49.5 53.6 59.4 Profits after tax............................................ 8.6 .4 10.1 24.9 44.8 39.3 46.1 57.7 72.9 74.0 72.9 73.2 85.1 91.1 5.8 2.0 4.4 8.8 24.3 24.7 25.0 27.3 29.6 29.1 29.8 30.7 31.6 32.5 2.8 -1.6 5.7 16.0 20.5 14.6 21.1 30.3 43.3 44.9 43.1 42.5 53.5 58.5 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 -5.1 -4.8 -4.9 -7.0 -17.6 -20.0 -17.5 -16.3 -31.0 -37.9 4.7 4.1 3.2 2.0 30.5 36.5 41.6 45.6 52.3 51.1 53.2 55.5 57.5 60.1 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ 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 II III IV I Up Gross national product. 103.1 55.6 124.5 284.8 930.3 977.1 1,054.91,158.01,294.91,277.91,308.91,344.01,358.81,387.3 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 81.6 87.3 93.7 102.9 110.8 110.5 111.5 113.9 115.8 118.6 Indirect business tax and nontax lia­ bility....................................................... 7.0 7.1 11.3 23.3 85.9 93.5 102.7 110.0 119.2 118.6 120.4 121.3 122.6 125.9 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 -2.3 -3.8 -5.0 -6.5 -4.9 -2.6 -6.3 -3.1 Plus: Subsidies less current surplus of gov­ ernment enterprises............................... —. l . 1 .2 1.0 1.7 1.1 2.3 .6 .7 . 3 —. l -2.7 -3.7 Equals: National income. 86.8 40.3 104.2 241.1 766.0 800.5 857.7 946.5 1,065.61,051.21,077.31,106.31,118.81,137.1 Less: Corporate profits and inventory valu­ ation adjustment................................... 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.0 105.2 106.4 107.7 112.6 Contributions for social insurance........ .2 .3 2.8 6.9 54.2 57.7 63.8 73.0 91.2 90.2 92.1 93.9 99.1 100.8 Excess of wage accruals over disburse­ ments ....................................................... .0 .6 .0 1 - .3 .0 .0 .0 -.6 Plus: Government transfer payments............. .9 1.5 2.6 14.3 61.9 75.1 89.0 98.6 113.0 111.3 114.1 117.1 123.1 130.6 Net interest paid by government and consumers............................................... 2.5 1.6 2.2 7.2 28.7 31.0 31.2 33.0 38.3 37.7 39.3 40.4 40.8 41.9 Dividends.................................................... 5.8 2.0 4.4 8.8 24.3 24.7 25.0 27.3 29.6 29.1 29.8 30.7 31.6 32.5 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 Equals: Personal income............................... 85.9 47.0 96.0 227.6 750.9 808.3 864.0 944.9 1,055.01,039.21,068.01,099.31,112.51,134.6 Less: Personal tax and nontax payments. 2.6 1.5 3.3 20.7 116.5 116.6 117.6 142.4 151.3 147.2 154.2 159.9 161.9 168.2 Equals: Disposable personal income........... 83.3 45.5 92.7 206.9 634.4 691.7 746.4 802.5 903.7 892.1 913.9 939.4 950.6 966.5 Less: Personal outlays........................................ 79.1 46.5 81.7 193.9 596.2 635.5 685.9 749.9 829.4 822.5 840.7 850.1 866.2 894.9 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 799.0 816.3 823.9 840.6 869.1 Consumer interest payments.............. 1.5 .5 .9 2.4 15.8 16.8 17.7 19.8 22.9 22.5 23.4 24.0| 24.4 24.8 Personal transfer payments to for­ eigners .................................................. .3 . 2 .2 .5 .9 1.0 1.1 l.l 1.3 1.0 .9 2.2 1.2 1.0 Equals: Personal saving. 4.2 -.9 11.0 13.1 38.2 56.2 60.5 52.6 74.4 69.6 73.2 89.3 84.4 71.5 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 513.6 534.8 555.4 580.5 619.6 618.2 621.8 622.9 610.3 603.5 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1973 1974 Item 1972 1973 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r June July*> Total personal income............................ 944.9 1,055.01,056.11,067.61,080.41,090.81,100.01,107.11,107.01,113.41,117.11,125.21,135.21,143.51,157.9 Wage and salary disbursements........... 626.8 691.7 692.9 697.2 704.5 711.0 717.9 722.2 722.5 728.3 .732.1 .737.1 745.3 753.2 759.4 Commodity-producing industries... 225.4 251.9 252.6 253.7 257.4 260.0 263.1 264.5 262.1 264.6 265.3 267.4 270.0 272.6 273.3 Manufacturing only........................ 175.8 196.6 196.8 197.8 200.4 202.9 205.2 205.8 204.1 204.9 205.5 207.8 210.1 212.5 213.6 Distributive industries....................... 151.0 165.1 165.1 166.2 168.2 169.1 171.1 170.9 172.0 172.8 173.9 175.3 177.8 179.1 180.1 Service industries............................... 115.3 128.2 128.7 129.7 130.7 131.5 132.3 134.7 135.3 137.0 138.2 139.1 141.1 142.6 144.0 Government........................................ 135.0 146.6 146.5 147.5 148.2 150.4 151.4 152.1 153.0 153.8 154.6 155.3 156.3 158.9 162.0 Other labor income............................... 41.7 46.0 45.9 46.3 46.7 47.1 47.6 48.0 48.5 48.9 49.4 49.9 50.5 51.1 51.7 Proprietors’ income............................... 75.9 96.1 96.6 99.1 102.1 103.2 103.4 103.3 100.8 98.5 96.0 92.8 89.9 86.9 88.0 Business and professional................. 54.9 57.6 57.8 57.6 57.8 58.3 58.5 58.4 58.7 59.4 59.9 60.2 60.8 61.2 61.3 Farm..................................................... 21.0 38.5 38.8 41.5 44.3 44.9 44.9 44.9 42.1 39.1 36.1 32.6 29.1 25.7 26.7 Rental income......................................... 25.9 26.1 26.0 26.2 26.4 26.4 26.4 26.4 26.4 26.4 26.4 25.5 26.7 26.7 26.8 Dividends................................................. 27.3 29.6 29.4 30.0 30.0 30.2 30.4 31.6 31.4 31.6 31.9 32.1 32.5 33.0 33.2 Personal interest income....................... 78.6 90.6 91.2 92.5 93.7 94.8 96.0 97.0 97.5 98.3 99.0 100.4 102.0 103.5 104.7 Transfer payments................................. 103.2 117.8 117.2 119.4 120.4 121.7 122.1 122.6 126.7 128.4 129.5 134.6 135.8 137.0 142.5 Less: Personal contributions for social insurance........................................ 34.5 42.8 43.1 43.3 43.5 43.7 43.8 43.8 46.7 46.8 47.0 47.2 47.6 47.9 48.3 Nonagricultural income.......................... 916.51,008.01,008.81,017.61,027.61,037.01,046.11,052.91,055.51,064.91,071.61,083.11,096.61,106.81,121.1 Agricultural income................................ 28.4 47.1 47.4 50.0 52.9 53.8 53.9 54.2 51.5 48.5 45.5 42.1 38.6 36.8 36.8 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

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR THE YEAR 1973 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest of U.S. All State the Govt. Fed. spons. Mone­ Pvt, sectors Discrep­ Natl, Sector House­ Busi­ and local Total world Total credit tary Coml. nonbank ancy saving holds ness govts. agencies auth. banks finance and invest­ Transaction ment category U S U S U S U S U S U S U S U S U S U S U S U S U 229.6 . 112.6 ................2 .. . . 342.5 -.1 -8.2 10.5 .2 .1 4.4 5.7 344.7 344.7 1 2 Capital consumption................................... 115 7 95 2 211.0 3.1 1.7 1.4 214.1 214.1 2 113.9 17.4 .2 .. .. 131.5 -.1 -8.2 7.4 .2 .1 2.7 4.3 130.6 130.7 3 235.6 98.8 -5.4....... 329.1 ....... 2.1 -7.7 13.7 .3 .1 6.0 7.4 337.3 7.4 337.6 4 5 Private capital expenditures............................ 174 1 160 5 334 7 5.0 3.0 2.0 339.7 5.0 339.7 5 6 Consumer durables..................................... 130 3 130 3 130.3 130.3 6 7 Residential construction............................ 37 5 19 5 57 0 .2 .2 57.2 57.2 7 8 Plant and equipment................................... 6 3 125 7 132.0 4.8 3.0 1.8 136.8 136.8 8 9 Inventory change......................................... 15 4 15 4 15.4 15.4 9 01.5 -61 7 -5.4 -5.6 . .. 2.1....... -7.7 8.7 .3 .1 2.9 5.4 -2.4 2.4 -2.1 10 130.8 .. 43.9 .. . 7.9 182.6 ....... 17.4 4.3 217.8 22.0 7.8 100.2 87.7 422.1 2.4 15.3 11 6*9.3 105.5 13.3 . .. 188.1 15.3 12.0 209.1 21.8 7.7 97.3 82.3 424.6 17.4 12 1 1 3 4 G Tr o e l a d s u a r n y d c o u f r f r i e c n ia c l y f . o .. r .. e .. i . g .. n ... .. e .. x .. c .. h .. a .. n ... g .. e .. . . .. . . .. . .. . * -.2 .4 -. . 2 4 -. . 2 4 -. . 2 4 -. . 2 4 * . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. . 1 1 3 4 1 ^ ariH nirrptirv 13 1 - 3 -.3 12.5 2.5 -1.8 2.4 16.0 .1 3.4 .3 12.6 2.0 15.5 16.0 .4 .................. 15 1 £% Privafp Hrtmpctip 13 1 - 3 -.3 12.5 2.4 15.0 .1 3.9 .3 11.0 2.0 14.9 15.0 .1 .................. 16 17 U.S. Government...................................... -1.8 -1.5 -.5 -1.0 -1.8 -1.5 .3 .................. 17 18 Foreign....................................................... 2.5 2.5 -.1 2.6 2.5 2.5 .................. 18 67 7 1 4 7 2 76.3 2.9 -.2 .1 79.1 50.9 .1 28.1 79.1 79.1 .................. 19 20 At commercial banks............................... 39 5 1 4 7 2 48 1 2 9 - 2 .1 50.9 50.9 .1 50.9 50.9 ..................20 21 At savings institutions............................. 28 2 28.2 * 28.1 * 28.1 28.1 28.1 .................. 21 22 Life insurance reserves............................... 7 3 7.3 ... .1 7.2 7.2 7.3 7.3 ..................22 23 Pension fund reserves................................. 24 4 24.4 2.1 22.3 22.3 24.4 24.4 ..................23 llllCl UdlltV llvIUo ............................... 7.9 7.9 -1.6 3.5 9.5 4.4 7.9 7.9 ..................24 -8 2 7 4 -8.2 7.4 2.8 -.2 13.4 .8 .1 1.2 13.4 -.4 8.0 8.0 .................. 25 29.7 72.8 9.1 77.6 .4 12.3 39.3 162.7 .7 7.7 3.0 9.7 188.3 51.2 20.3 19.6 9.2 86.6 10.6 72.2 21.0 231.3 231.3 ..................26 27 U.S. Government securities................... 20.4....... -1.8 .2 18.8 .3 * 9.8 10.3 19.6 1.3 19.6 9 3 -1.3 .9 29.4 29.4 ..................27 28 State and local obligations..................... 4 3 -.1 1.8 .2 11.9 4.4 13.7 9.3 5.7 3.6 13.7 13.7 ..................28 2 3 9 0 C H o o r m po e r m at o e r a tg n a d g f e o s reign bonds................ - 1 .9 1 44.2 - 9 .2 9 * - 1 . . 9 1 4 9 3 . . 2 3 .1 1.0 -1.2 -.1 4 1 3 1 . . 9 3 -1 2 . . 5 3 6.4 11 . . 5 0 * 2 1 6 0 . .9 5 -1 2 . . 5 3 4 1 1 2 . .5 7 4 1 1 2 . . 7 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 9 0 Othpf mnrtofl opc 1.4 1.4 28 4 1.4 29.8 .6 28.1 .3 4.0 8.8 15.4 .3 30.2 30.2 ..................31 32 Consumer credit....................................... 22.9 3 3 3.3 22.9 19.7 10.6 9.0 22.9 22.9 ..................32 33 3snk loans n c c 1.8 34.0 35.8 2.8 52.1 13.5 52.1 5.1 8.4 52.1 52.1 ..................33 QA Othpr 3.5 2.5 7.8 5.1 .3 11.3 7.9 .3 3.9 3.6 13.7 17.0 8.5 -.8 5.5 5.9 11.5 28.8 28.8 ..................34 35 Security credit -.2 -4.6 -.2 -4.6 * -.2 -8.0 -3.4 -3.4 -4.6 -3.4 -8.2 -8.2 ..................35 36 To brokers and dealers.......................... _ o - 2 -3.2 -3.4 -3.2 -3.4 -3.4 -3.4 ..................36 37 To others • . . -4.6 -4.6 -.2 -4.8 -.2 -4.6 -4.8 -4.8 ..................37 38 Taxes payable 2 3 6 .6 2.3 2.2 .3 .1 .1 .1 2.8 2.7 -.1 ..................38 39 Trade credit 6 24.1 20.1 1 i 24.1 21.8 1.0 1.9 .3 .1 .7 .7 26.0 23.7 -2.3 ..................39 40 Equity in noncorporate business.............. -4 4 -4 4 -4.4 -4.4 -4.4 -4.4 ..................40 41 Miscellaneous claims 1.5 .4 9.6 2.5 11.1 2.9 7.6 6.3 1.0 -.4 12.8 27.8 1.7 2.2 .8 7.2 17.5 .9 7.4 32.4 36.7 4.3 ..................41 42 Sector discrepancies (1-4).............................. -6 0 13.8 5 6 13 4 -2.2 -.5 -3.3 -1.6 -1.7 7.4 7.4 . .. 7.2 42 A 58 FLOW OF FUNDS o SEPTEMBER 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ FLOW OF FUNDS A 59.1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1973 1974P Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Funds raised, by type and sector 1 69.9 67.9 82.4 95.9 91.8 98.2 147.4 169.4 187.4 199.9 174.8 188.7 1 2 Excluding equities..................................................... 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 192.5 167.8 182.3 2 3 U.S. Government............................................................ 1.8 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 9.7 17.8 1.6 8.2 3 4 1.3 2.3 8.9 10.3 -1.3 12.9 26.0 13.9 7.7 16.6 -1.2 7.0 4 5 Budget agency issues.................................................. .5 1.3 4.1 3.1 -2.4 -.1 -.5 3.4 2.0 1.2 2.8 1.2 5 6 All other nonfinancial sectors........................................ 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 182.1 173.2 180.5 6 7 .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 7.4 7.0 6.4 7 8 Debt instruments................................................... 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 174.6 166.2 174.1 8 9 Debt capital instruments........................................... 38.8 38.9 45.7 50.6 50.6 57.6 84.2 94.9 97.1 96.4 97.7 96.0 9 10 State and local government securities................. 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 11.6 15.8 16.4 10 11 Corporate and foreign bonds.............................. 5.9 11.0 15.9 14.0 13.0 20.6 19.7 13.2 10.2 9.4 10.9 16.3 11 12 25.6 22.3 22.0 27.1 27.7 25.7 46.9 67.3 73.2 75.4 71.0 63.2 12 13 15.4 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 44.8 41.9 37.4 13 14 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 9.7 7.1 8.3 14 15 4.4 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 16.8 17.3 13.5 15 16 2.2 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.2 4.6 4.2 16 17 Other private credit.................................................... 29.0 24.4 21.3 32.0 41.0 22.1 26.3 46.7 73.4 78.2 68.6 78.1 17 18 14.1 10.7 9.5 13.1 15.3 6.4 9.3 21.8 38.6 47.1 30.1 43.0 18 19 9.6 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 25.1 20.8 12.7 19 20 Open-market paper................................................ -.3 1.0 2.1 1.6 3.3 3.8 -.9 -1.6 1.8 -2.3 6.0 14.7 20 21 Other.......................................................................... 5.6 6.2 5.1 7.2 12.0 5.9 6.6 7.3 10.0 8.3 11.7 7.7 21 22 By borrowing sector.................................................... 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 182.1 173.2 180.5 22 23 Debt instruments................................................... 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 174.6 166.2 174.1 23 24 Foreign...................................................................... 2.4 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 8.4 7.1 20.2 24 25 State and local governments................................ 7.7 6.3 7.9 9.8 10.7 11.3 17.8 14.2 12.3 9.8 14.7 14.6 25 26 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 73.3 72.3 53.1 26 27 Nonfinancial business............................................ 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 83.2 72.1 86.2 27 28 3.3 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.5 9.7 9.0 28 29 Nonfarm noncorporate........................................ 5.7 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 11.2 7.4 7.0 29 30 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 64.4 55.0 70.1 30 31 Corporate equities.................................................. .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 7.4 7.0 6.4 31 32 Foreign...................................................................... .3 -.3 .1 .2 .5 .1 * -.4 -.2 -.4 * .3 32 33 * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 33 Totals including equities 34 Foreign...................................................................... 2.7 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 8.0 7.1 20.5 34 35 Nonfinancial business............................................ 29.4 33.8 38.1 39.9 49.4 48.0 59.6 70.5 85.1 91.0 79.1 92.3 35 36 20.4 25.3 29.6 31.5 38.9 39.5 46.8 55.3 67.2 72.3 62.0 76.2 36 37 Memo: U.S. Govt, cash balance........................... -1.0 -.4 1.2 -1.1 .4 2.8 3.2 -.3 -1.7 3.8 -7.1 -2.4 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised........................................................... 70.9 68.3 81.3 97.1 91.4 95.5 144.2 169.7 189.0 196.2 181.9 191.0 38 39 By U.S. Government................................................. 2.8 4.0 11.8 14.5 -4.0 10.0 22.3 17.6 11.4 14.1 8.7 10.6 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlaysi.......................................... 173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 328.8 340.5 334.1 1 2 Capital consumption 2............................................... 110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 207.8 214.1 218.1 2 3 Net physical investment............................................. 62.8 72.2 59.7 67.2 72.4 58.2 74.6 98.7 123.7 121.0 126.3 116.0 3 4 Net funds raised........................................................... 57.8 56.5 57.5 69.9 81.1 71.4 99.4 133.6 157.9 164.3 151.4 145.3 4 5 Excess net investment 3.............................................. 5.1 15.7 2.2 -2.7 -8.7 -13.2 -24.8 -34.9 -34.2 -43.3 -25.1 -29.3 5 Total business 6 Total capital outlays............................................ 83.6 96.4 93.4 97.9 108.9 108.0 117.1 134.3 160.5 152.7 168.4 168.8 6 7 50.5 54.2 58.5 63.2 69.5 74.6 80.3 88.2 95.2 93.5 97.0 100.9 7 8 Net physical investment............................................ 33.1 42.3 35.0 34.7 39.4 33.5 36.8 46.0 65.3 59.2 71.4 67.9 8 9 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 83.2 72.1 86.2 9 10 * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 10 11 3.7 8.5 -3.2 -5.2 -10.0 -14.5 -22.8 -24.5 -19.8 -31.8 -7.7 -24.4 11 Corporate business 12 Total capital outlays............................................ 62.3 76.5 71.4 75.0 83.7 84.0 87.2 102.5 121.5 115.2 127.8 132.2 12 13 Capital consumption................................................... 35.2 38.2 41.5 45.1 49.8 53.6 57.7 63.0 67.5 66.5 68.4 70.8 13 14 27.1 38.3 29.9 29.9 33.9 30.4 29.5 39.4 54.0 48.7 59.4 61.5 14 15 Net debt funds raised................................................. 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 64.4 55.0 70.1 15 16 * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 16 17 6.7 13.0 .4 -1.6 -5.0 -9.1 -17.3 -15.8 -13.1 -23.6 -2.6 -14.8 17 Households 18 Total capital outlays............................................ 89.6 94.2 94.6 109.7 117.8 116.2 136.4 158.8 174.1 176.2 172.1 165.2 18 19 59.9 64.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 114.4 117.1 117.2 19 20 29.7 29.9 24.7 32.5 33.0 24.7 37.8 52.7 58.4 61.8 55.0 48.1 20 21 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 73.3 72.3 53.1 21 22 1.4 7.2 5.4 2.5 1.3 1.4 -2.1 -10.4 -14.4 -11.5 -17.3 -5.0 22 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 5) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by Federally Note.—Data revised for all periods. Full statements for sectors and sponsored credit agencies are excluded as borrowing by financial institu­ transaction types are available on a quarterly basis and annually for flows tions. Such issues are on p. A-59.2, line 11. Corporate equity issues are net and for amounts outstanding. Requests for these statements should be cash issues by nonfinancial and foreign corporations. Mortgages exclude addressed to the Flow of Funds Section, Division of Research and loans in process. Open market paper is commercial paper issued by Statistics, Board of Governors of the Federal Reserve System, Washington, nonfinancial corporations plus bankers* acceptances. D.C. 20551. Digitized for FRASER http://fraser.stAlo ucoismfepldet.eo rsget/ of sector flows and outstandings will appear in the October Bulletin. See also p. A-59.2. Federal Reserve Bank of St. Louis

A 59.2 FLOW OF FUNDS □ SEPTEMBER 1974 6. SUMMARY OF CREDIT MARKET DEBT OWED BY NONFINANCIAL SECTORS1 (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Debt outstanding, by type and sector 1 Total credit market debt owed by nonfinancial sectors 842.6 900.6 967.5 1037.61102.81181.61276.91363.91456.71592.31751.41930.4 1 2 U.S. Government........................................................... 250.2 254.1 260.4 262.2 265.8 278.8 292.2 288.6 301.4 327.4 344.7 354.4 2 3 Public debt securities.................................................. 246.9 251.0 256.4 257.7 260.0 268.9 279.2 278.0 290.8 316.9 330.8 338.5 3 4 Budget agency securities........................................... 3.3 3.2 4.0 4.5 5.8 9.9 13.0 10.6 10.5 10.5 13.9 15.9 4 5 All other nonfinancial sectors.............................. 592.4 646.5 707.1 775.4 837.0 902.8 984.7 1075.31155.31264.91406.8 1576.0 5 6 417.8 453.4 490.6 530.0 568.9 613.4 663.7 713.3 771.5 855.5 950.5 1046.3 6 7 State and local govt, securities............................. 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.4 162.0 176.3 190.0 7 8 Corporate and foreign bonds.............................. 91.7 96.6 101.6 108.0 118.6 133.5 147.3 159.3 180.5 200.8 214.2 224.1 8 9 Mortgages................................................................. 244.9 269.9 296.1 321.7 344.4 366.3 393.2 420.9 446.6 492.8 560.0 632.2 9 10 162.7 177.9 193.5 208.9 220.6 232.1 247.1 262.8 275.6 301.4 341.0 384.4 10 11 25.8 29.0 33.6 37.2 40.3 43.9 47.3 52.0 57.8 66.6 76.9 85.3 11 12 41.1 46.2 50.0 54.5 60.1 64.8 71.3 76.6 81.9 91.9 106.7 123.7 12 13 15.2 16.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 32.9 35.4 38.8 13 14 Other private credit..................................................... 174.6 193.0 216.5 245.5 268.1 289.4 321.0 362.0 383.8 409.4 456.2 529.7 14 15 Bank loans n.e.c...................................................... 64.4 70.7 79.8 93.8 104.6 114.1 127.2 142.5 148.8 158.1 179.6 218.2 15 16 63.8 71.7 80.3 89.9 96.2 100.8 110.8 121.1 127.2 138.4 157.6 180.5 16 17 Open market paper................................................. 3.8 3.9 4.5 4.2 5.2 7.4 9.0 12.3 16.1 15.2 13.6 15.4 17 18 Other.......................................................................... 42.6 46.8 51.9 57.6 62.1 67.2 74.0 86.0 91.8 97.8 105.5 115.5 18 19 By borrowing sector.................................................. 592.4 646.5 707.1 775.4 837.0 902.8 984.7 1075.3 1155.3 1264.9 1406.91576.0 19 20 Foreign.......................................................................... 27.9 31.1 36.0 38.9 39.9 42.8 45.3 47.5 50.6 55.8 61.0 68.5 20 21 State and local governments..................................... 83.2 89.1 95.4 103.1 109.3 117.3 127.2 137.9 149.2 167.0 181.2 193.5 21 22 251.9 276.9 304.9 333.2 354.7 374.0 404.3 435.9 459.3 498.8 562.0 634.8 22 23 Nonfinancial business................................................ 229.4 249.3 270.8 300.3 333.1 368.7 407.9 454.0 496.2 543.3 602.5 679.2 23 24 23.9 26.4 29.0 32.2 35.8 39.2 41.9 45.1 48.3 52.0 56.9 64.5 24 25 Nonfarm noncorporate............................................ 30.6 35.1 40.4 46.2 51.6 56.5 62.1 69.5 74.7 83.4 93.8 103.1 25 26 175.0 187.8 201.3 221.8 245.7 272.9 303.9 339.5 373.2 407.8 451.8 511.6 26 Holdings of credit market claims 1 Total credit market debt claims against nonfinancial 842.6 900.6 967.5 1037.61102.81181.61276.9 1363.9 1456.71592.3 1751.41930.4 1 Held by public agencies and foreign— 2 89.8 96.3 104.1 112.8 124.2 135.2 146.8 161.5 190.0 231.3 250.3 283.2 2 3 U.S. Govt, securities................................................... 44.9 48.7 52.2 55.9 59.3 66.1 69.5 70.2 86.1 119.9 128.3 139.3 3 4 Residential mortgages................................................. 8.5 7.2 7.1 7.4 10.2 12.3 15.1 19.7 25.5 31.1 36.3 43.9 4 5 FHLB advances to S & L’s...................................... 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 15.1 5 6 Other loans plus securities........................................ 32.9 35.6 39.5 43.4 47.7 52.4 56.9 62.2 67.8 72.4 77.6 84.8 6 By agency— 7 U.S. Government......................................................... 30.8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.2 62.2 65.2 7 8 Sponsored credit agencies.......................................... 13.7 15.3 16.0 18.3 23.4 23.3 26.5 35.4 45.4 48.6 55.6 75.9 8 9 30.9 33.8 37.2 41.0 44.5 49.3 53.0 57.2 62.2 71.1 71.3 80.6 9 10 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.4 61.1 61.5 10 11 10.1 11.5 12.1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 68.9 11 Private domestic holdings— 12 762.8 815.8 875.5 938.9 997.6 1064.8 1152.0 1233.1 1305.5 1404.1 1550.5 1716.2 12 13 213.5 215.1 218.3 218.2 223.6 229.3 242.6 247.4 252.7 249.2 264.4 282.8 13 14 State and local obligations........................................ 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.4 162.0 176.3 190.0 14 15 91.0 95.9 100.7 107.3 117.3 132.5 146.4 158.9 178.8 198.5 211.6 221.8 15 16 181.8 201.5 221.9 240.5 252.5 265.4 281.0 296.7 309.5 338.3 382.9 427.0 16 17 Other mortgages and loans....................................... 198.8 221.2 247.1 278.7 305.3 328.2 364.0 406.3 430.8 464.1 523.3 609.8 17 18 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 15.1 18 Private financial intermediation— 19 Credit market claims held by private fin. inst............ 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.91066.6 1177.6 1331.01489.8 19 20 231.9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.9 653.5 20 21 135.1 152.5 168.7 183.0 191.3 206.2 221.7 236.0 252.8 294.5 343.8 378.9 21 22 Insurance and pension funds.................................... 181.0 192.7 205.5 219.1 234.6 247.5 261.6 274.3 291.5 304.9 322.6 344.7 22 23 34.3 37.9 43.1 49.3 53.8 53.5 60.4 70.9 76.6 81.9 97.7 112.8 23 24 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.91066.61177.61331.01489.8 24 25 Private domestic deposits.......................................... 335.5 366.6 401.5 439.9 461.2 511.0 556.9 559.6 622.8 713.1 810.7 895.4 25 26 Credit market debt...................................................... 28.8 35.0 40.6 48.5 51.7 51.3 59.7 78.9 78.7 88.0 108.6 140.2 26 27 218.0 231.0 247.4 264.0 284.1 298.0 318.9 353.4 365.2 376.5 411.7 454.2 27 28 10.3 11.8 14.3 15.0 18.7 21.0 23.6 32.9 24.5 21.2 26.4 33.0 28 29 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 9.9 28 30 150.0 159.6 170.5 181.5 195.7 206.5 216.9 228.9 242.3 249.8 260.1 281.4 30 31 50.5 53.0 56.0 61.9 64.6 65.4 73.5 86.6 90.5 95.3 114.3 130.0 31 Private domestic nonfinancial investors— 32 209.3 218.2 226.6 235.1 252.4 255.7 276.2 320.1 317.5 314.5 328.1 366.5 32 33 104.9 109.4 110.4 113.3 121.7 120.3 128.3 145.3 136.3 122.3 123.9 141.7 33 34 36.3 38.1 40.5 43.1 45.7 43.1 42.9 51.2 49.9 50.5 52.7 57.1 34 35 11.2 11.2 11.9 13.5 15.2 19.0 23.7 30.3 41.0 50.5 55.6 56.8 35 36 Commercial paper....................................................... 3.8 4.6 6.9 8.4 10.7 12.6 18.4 28.6 24.2 23.6 27.5 38.8 36 37 53.1 54.9 56.8 56.7 59.0 60.7 62.8 64.7 66.1 67.6 68.4 72.1 37 38 366.4 400.1 436.6 477.1 500.4 552.3 600.6 606.1 672.8 766.6 868.5 957.2 38 39 222.3 251.0 280.1 312.8 332.0 371.2 405.0 402.8 459.0 540.0 625.3 701.5 39 40 5.8 9.2 11.4 15.0 14.8 19.1 22.6 8.9 23.9 31.6 40.3 58.9 40 41 Other at commercial banks....................................... 89.0 99.2 110.2 126.2 138.3 156.6 174.1 177.6 201.7 234.7 265.3 294.8 41 42 127.6 142.7 158.4 171.6 178.9 195.5 208.3 216.3 233.3 273.7 319.6 347.8 42 43 144.0 149.0 156.5 164.3 168.3 181.1 195.6 203.3 213.8 226.6 243.3 255.7 43 44 Demand deposits..................................................... 113.2 115.6 121.4 127.1 129.2 139.8 151.9 156.7 163.8 173.1 185.4 193.9 44 45 30.8 33.4 35.1 37.2 39.2 41.3 43.7 46.6 50.0 53.4 57.9 61.8 45 46 Total of credit market instruments, deposits, and 575.6 618.2 663.2 712.2 752.7 808.1 876.8 926.2 990.41081.11196.61323.7 46 47 10.7 10.7 10.8 10.9 11.3 11.4 11.5 11.8 13.0 14.5 14.3 14.7 47 48 76.3 77.5 78.8 80.1 79.9 80.8 81.2 80.4 81.7 83.9 85.8 86.8 48 49 Total foreign funds......................................................... 24.7 26.8 30.2 30.9 33.0 37.0 39.7 47.8 50.2 73.6 87.5 94.5 49 * Excludes corporate equities both as assets and as liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ FLOW OF FUNDS A 59.3 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 | 1969 1970 1971 1972 1973 Households, personal trusts, and nonprofit organizations 1 Total financial assets....................................................... 1090.61218.9 1329.41464.41460.01695.01910.31853.71918.92134.52405.82302.3 1 2 Deposits and credit market instruments 1..................... 435.5 468.4 507.0 547.8 587.9 635.8 690.1 732.3 786.8 859.2 952.8 1062.2 2 3 Demand deposits and currency................................ 78.4 81.7 86.5 94.2 98.1 109.4 121.7 123.3 134.5 145.5 157.3 170.2 3 4 Time and savings accounts......................................... 207.5 232.1 259.5 287.5 306.8 341.5 371.7 377.8 422.3 492.5 567.9 635.6 4 5 At commercial banks............................................. 79.9 89.4 101.1 115.9 127.9 146.0 163.4 161.5 189.0 218.8 248.3 287.8 5 6 At savings institutions............................................ 127.6 142.7 158.4 171.6 178.9 195.5 208.3 216.3 233.3 273.7 319.6 347.8 6 7 Credit market instruments........................................ 149.6 154.5 160.9 166.0 183.0 184.9 196.7 231.1 230.0 221.2 227.6 256.4 7 8 U.S. Government securities............... ............... 72.9 76.5 79.3 81.8 89.5 91.0 96.6 109.4 99.7 85.3 85.9 105.3 8 9 Savings bonds...................................................... 46.9 48.0 49.0 49.6 50.2 51.1 51.5 51.1 51.4 53.8 57.1 59.8 9 10 Short-term marketable...................................... 10.3 12.7 12.5 12.4 13.2 12.2 20.1 31.7 22.7 10.2 10.9 17.7 10 11 Other direct.......................................................... 13.1 12.9 14.2 15.2 17.1 17.4 14.7 13.6 9.9 10.3 7.0 6.7 11 12 Agency issues....................................................... 2.6 2.9 3.7 4.6 9.0 10.3 10.2 13.0 15.7 11.0 10.9 21.1 12 13 State and local obligations.................................... 31.0 32.0 34.6 36.4 40.0 37.7 37.0 46.1 45.4 45.2 46.2 50.5 13 14 Corporate and foreign bonds............................... 11.2 11.2 11.9 13.5 15.2 19.0 23.7 30.3 41.0 50.5 55.6 56.8 14 15 Commercial paper................................................... .1 . 1 * * 2.8 .6 1.4 6.1 4.6 .7 2.2 5.7 15 16 Mortgages................................................................. 34.5 34.8 35.1 34.3 35.7 36.6 38.1 39.2 39.3 39.5 37.6 38.1 16 17 Corporate equities....................................................... 437.9 514.8 566.5 637.5 576.9 733.7 865.1 750.0 733.6 833.7 959.1 744.4 17 18 Investment company shares.................................. 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 56.7 59.8 46.5 18 19 Other corporate shares.......................................... 416.7 489.6 537.4 602.2 542.1 689.0 812.4 701.7 685.9 777.0 899.3 697.9 19 20 Life insurance reserves............................................... 92.4 96.6 101.1 105.9 110.6 115.4 120.0 125.0 130.3 136.4 143.0 150.3 20 21 Pension fund reserves................................................. 109.2 122.7 137.5 153.8 163.6 185.2 206.4 217.4 237.6 271.6 314.5 307.8 21 22 Security credit.............................................................. 1.2 1.5 1.7 2.5 2.7 4.9 7.0 5.2 4.4 4.9 5.0 4.8 22 23 Miscellaneous assets................................................... 14.3 14.8 15.7 17.0 18.2 19.8 21.6 23.8 26.3 28.7 31.3 32.8 23 24 Total liabilities................................................................. 263.5 290.9 319.1 348.7 370.7 394.4 428.4 457.5 480.0 522.8 591.9 661.1 24 25 Credit market instruments........................................ 251.9 276.9 304.9 333.2 354.7 374.0 404.3 435.9 459.3 498.8 562.0 634.8 25 26 Home mortgages..................................................... 160.4 175.1 191.1 206.3 219.0 229.4 244.0 260.1 272.5 296.4 334.8 379.0 26 27 Other mortgages...................................................... 11.0 12.0 13.1 14.2 15.5 16.7 17.8 19.1 20.5 21.7 23.1 24.5 27 28 Instalment consumer credit................................... 48.7 55.5 62.7 70.9 76.2 79.4 87.7 97.1 102.1 111.3 127.3 147.4 28 29 Other consumer credit........................................... 15.1 16.3 17.6 19.0 20.0 21.4 23.0 24.0 25.1 27.1 30.2 33.0 29 30 Bank loans n.e.c...................................................... 8.1 8.8 10.3 11.7 12.0 13.9 16.4 17.3 18.2 20.1 22.9 24.7 30 31 Other loans............................................................... 8.5 9.2 10.1 11.0 11.9 13.3 15.3 18.3 20.9 22.3 23.6 26.1 31 32 Security credit.............................................................. 6.6 8.6 8.4 9.1 9.0 12.7 15.6 12.2 10.4 13.1 17.7 13.1 32 33 Trade credit.................................................................. 2.4 2.5 2.8 3.0 3.3 3.7 4.2 4.7 5.2 5.6 6.2 6.8 33 34 Deferred and unpaid life insurance premiums.... 2.7 2.9 3.0 3.3 3.7 3.9 4.3 4.7 5.1 5.4 6.0 6.4 34 Nonfinancial business—Total 1 Total financial assets....................................................... 236.2 252.3 268.1 290.9 306.3 325.9 358.8 391.8 409.3 437.7 476.1 528.0 1 2 Demand deposits and currency............................... 46.4 46.5 47.0 47.4 47.7 49.3 51.2 53.8 54.8 55.5 55.6 55.4 2 3 Time deposits............................................................... 8.4 10.8 10.8 13.1 11.7 13.8 14.2 11.8 13.5 17.1 20.2 21.5 3 4 Credit market instruments........................................ 39.8 43.0 45.3 45.9 44.4 46.2 52.6 55.7 53.9 61.7 65.3 74.5 4 5 Trade credit.................................................................. 92.6 98.8 107.0 121.0 133.0 141.3 160.0 182.7 191.1 196.7 216.8 240.9 5 6 Miscellaneous assets................................................... 49.1 53.2 58.0 63.5 69.4 75.3 80.8 87.9 96.0 106.7 118.2 135.8 6 7 Total liabilities................................................................. 331.0 360.1 389.4 433.8 477.3 518.0 578.3 643.6 692.2 746.9 822.6 925.1 7 8 Credit market instruments........................................ 229.4 249.3 270.8 300.3 333.1 368.7 407.9 454.0 496.2 543.3 602.5 679.2 8 9 Bonds......................................................................... 84.5 88.4 92.4 97.8 108.0 122.7 135.6 147.6 167.3 186.1 198.3 207.5 9 10 Home mortgages..................................................... 2.4 2.7 2.4 2.6 1.6 2.7 3.2 2.7 3.1 5.0 6.2 5.3 10 11 Other mortgages...................................................... 71.1 80.1 89.5 98.6 108.3 117.5 128.2 139.0 150.6 169.7 195.9 223.4 11 12 Bank loans n.e.c...................................................... 52.2 57.1 62.7 74.9 85.5 93.4 104.5 119.1 124.8 130.7 146.5 180.5 12 13 Other loans............................................................... 19.3 21.0 23.7 26.4 29.7 32.4 36.4 45.6 50.5 51.7 55.0 60.1 13 14 Trade debt, net............................................................ 78.1 85.4 92.3 104.6 114.8 123.7 141.1 162.6 171.3 176.6 192.6 212.6 14 15 Other liabilities............................................................ 23.6 25.5 26.4 29.0 29.4 25.6 29.3 27.0 24.7 27.0 27.5 33.3 15 1 Excludes corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 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 1972 1973 I 11 III IV I p 1 Merchandise trade balance i........................................................... -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 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 3............................................................. -170 -6,009 4,543 J -193 119 1,683 2,934 2,902 1 487 233 -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 -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 f-1,006 -1,158 1,917 -498 2,065 \ —1,051 -1,179 250 1,237 2,456 27 Nonliquid short-term private capital flows, net......................... -2,347 -1,541 -4,276 -1,663 -1,457 97 -1,253 -3,224 28 Claims reported by U.S. banks.............................................. -1,802 -1,457 -3,940 -1,644 -1,399 222 -1,119 -2,791 29 Claims reported by U.S. nonbanking concerns................. -530 -305 -1,240 -57 -59 -460 -664 -756 30 Liabilities reported by U.S. nonbanking concerns............ -15 221 904 38 1 335 530 323 31 Allocations of Special Drawing Rights (SDR’s)........................ 717 710 32 Errors and omissions, net............................................................... -9,776 -1,790 -2,776 -4,085 904 -387 792 290 33 Net liquidity balance.................................................................................. -21,965 -13,856 -7,796 /—6,754 -1,711 -1,627 -959 -869 \—6,190 -2,038 611 -179 -48 34 Liquid private capital flows, net..................................................... -7,788 3,502 2,492 -3,441 1,997 316 3,630 1,913 35 Liquid claims.............................................................................. -1,097 -1,247 -1,944 -1,853 923 -521 -493 -2,660 36 Reported by U.S. banks.................................................. -566 -742 -1,103 -1,171 996 -456 -472 -2,248 37 -531 -505 -841 -682 -73 -65 -21 -412 38 Liquid liabilities......................................................................... -6,691 4,749 4,436 -1,588 1,074 837 4,113 4,573 39 To foreign commercial banks........................................ -6,908 3,716 2,978 -1,673 723 699 3,229 4,589 40 682 104 376 11 31 -50 384 -593 41 To other foreigners........................................................... -465 929 1,082 74 320 188 500 577 42 -29,753 -10,354 -5,304 /-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 233i 233 -1 50 1,350 153 -33i -13 8 -13 -15 -209 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14).......................................................................... 3,204 4,189 2,772t 693l 833 758 487 391 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................... 3,151 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............................................................................... -22,682? -14,566f — 7,79t> -6,19C) - 2,0381 611 -179> -48 55 Official reserve transactions.................................................... -30,47C) -11,0641 -5,30<t -9,99af 765> 939> 2,982> 1,488 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 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 5,070 7,606 3,564 4,473 5,483 7,392 130 -649 -413 213 Mar... 3,790 3,869 5,311 7,674 3,628 4,515 5,414 7,845 160 -647 -103 -171 Apr... 3,631 3,820 5,494 8,234 3,774 4,417 5,360 8,141 -143 -596 + 133 93 May.. 3,746 3,882 5,561 7,630 3,908 4,486 5,703 8,407 -161 -604 -142 -777 June.. 3,672 3,971 5,728 8,357 4,037 4,468 5,775 8,613 -365 -497 -47 -256 July... 3,573 4.074 5,865 8,307 3,832 4,565 5,829 9,036 -259 -491 +37 -728 Aug... 3,667 4,197 6,042 3,913 4,726 6,011 -247 -530 +32 Sept... 4,487 4,176 6.420 4,179 4,612 5,644 308 -436 +776 Oct... 2,669 4,316 6,585 3,469 4,738 5,996 -800 -421 + 589 Nov... 3,196 4,473 6,879 3,456 5,148 6,684 -260 -675 + 195 Dec... 3,881 4,558 6,949 4,169 5,002 6,291 -288 -444 +658 Quarter: I 11,086 11,767 15,337 22,390 10,792 13,403 16,140 21,704 294 -1,657 -804 686 I I 11,049 11,673 16,783 24,220 11,719 13,370 16,838 25,161 -670 -1,697 -56 -940 III.... 11,727 12,447 18,327 11,924 13,903 17,483 -197 -1,456 +845 IV.... 9,746 13,347 20,413 11,094 14,888 18,972 -1,348 -1,540 + 1,441 Year3... 43,549 49,208 70,823 45,563 55,555 69,476 -2,014 -6,347 + 1,348 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) E y n e d a r of Total To G ta o l2 ld st T o r c e k a l sury v c fo e u C c r r r o i e t r e i i e n b s g n ­ l n e ­ p R o I e s M s i i n e ti F r o v n e SDR’s3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo C e c u r r i r o e e t r i i n e s b g 4 n ­ l n e ­ p R o e I s M s i i n e ti r F o v n e SDR’s3 1960... 19,359 17,804 17,767 1,555 1973 1961... 18,753 16,947 16,889 116 1,690 Aug---- 12,923 10,487 10,410 8 479 1,949 1962... 17,220 16,057 15,978 99 1,064 Sept__ 12,927 10,487 10,410 8 483 1,949 1963... 16,843 15,596 15,513 212 1,035 Oct.... 8 14,367 8 11,652 8 11,567 8 8 541 8 2,166 1964... 16,672 15,471 15,388 432 769 Nov.... 14,373 11,652 11,567 8 547 2,166 Dec.. . 14,378 11,652 11,567 8 552 2,166 1965... 15,450 13,806 13,733 781 863 1966... 14,882 13,235 13,159 1,321 326 1974 1967... 14,830 12,065 11,982 2,345 420 Jan.. .. 14,565 11,652 11,567 59 688 2,166 1968... 15,710 10,892 10,367 3,528 1,290 Feb.... 14,643 11,652 11,567 68 757 2,166 1969.. . 5 16,964 11,859 10,367 52,781 2,324 Mar__ 14,588 11,652 11,567 9 761 2,166 Apr---- 14,651 11,652 11,567 9 824 2,166 1970... 14,487 11,072 10,732 629 1,935 851 May... 14,870 11,652 11,567 66 989 2,163 1971... 612,167 10,206 10,132 6 276 585 1,100 June... 14,946 11,652 11,567 94 1,005 2,195 19727. . 13,151 10,487 10,410 241 465 1,958 July.... 14,912 11,652 11,567 12 1,021 2,227 19738 . . 14,378 11,652 11,567 8 552 2,166 Aug... 915,460 11,652 11,567 224 9 1,384 9 2,200 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR’s $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 8 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million) 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR’s $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 9 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR’s. of 16 member countries. The U.S. SDR holdings and reserve position 4 For holdings of F.R. Banks only, see p. A-ll. in the IMF are also valued on this basis beginning July 1974. At valua­ 5 Includes gain of $67 million resulting from revaluation of the German tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end mark in Oct. 1969, of which $13 million represents gain on mark holdings of August amounted to $2,241 million, reserve position in IMF $1,409 at time of revaluation. million, and total U.S. reserve assets $15,526 million. 6 Includes $28 million increase in dollar value of foreign currencies revalued to reflect market exchange rates as of Dec. 31, 1971. Note.—See Table 20 for gold held under earmark at F.R. Banks for 7 Total reserve assets include an increase of $1,016 million resulting foreign and international accounts. Gold under earmark is not included from change in par value of the U.S. dollar on May 8, 1972; of which, in the gold stock of the United States. 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 □ SEPTEMBER 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 III IV Western Europe: Austria.................................. -82 -55 -100 -25 Belgium................................. -40 -83 -58 -110 France.................................... -5i8 -405 -884 -60i 600 325 -129 -473 Germany, Fed. Rep. of. . , -225 500 Ireland................................... -1 -2 -2 -2 -52 41 Italy....................................... 200 -80 -60 -85 -209 -76 Netherlands.......................... -60 -35 -19 -50 -25 Spain...................................... -130 -32 -180 51 Switzerland........................... -81 -50 -30 -50 -25 -50 — 175 United Kingdom................. *329 618 150 -879 -835 Bank for Intl. Settlements. 200 Other...................................... -35 16 -47 11 -29 -13 Total. -399 -1,299 -659 -980 -669 969 -204 -796 Canada ................................ 200 150 50 Latin American republics: Argentina ....................... -39 -1 -25 -25 -28 Brazil................................. 25 -3 -1 -23 Colombia.......................... 29 7 -1 Venezuela......................... -25 Other.................................. -11 -13 -40 -29 -80 -5 Total. 32 56 17 -65 -54 -131 Asia: Iraq................. -10 -4 -42 Japan.............. -56 -119 Lebanon......... -11 -95 -35 Malaysia......... -34 -10 Philippines. .. 25 9 40 -2 Saudi Arabia. -50 Singapore -81 Other............... -13 -14 -75 2-91 -3 Total................... -24 -86 -44 -366 42 -213 -3 All other.......................... -16 -22 3-166 3-68 -1 -81 Total foreign countries. -392 -36 -J ,322 -608 -1,031 -1,118 957 -631 -845 -3 Intl. Monetary Fund4.. 5-225 177 22 -3 10 -156 -22 -544 Grand total -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

SEPTEMBER 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 p E e o r n i f d od Total a f r I g r i M o s o i l m n d F g S t h er o m rt ­ Market­ N k o e n ta m bl a e r­ N n v k o o e e n r n t t a c m i b b o l a l n e e r ­ ­ r O ea t d h i e l r y to L li a i t c q i b e o u i s l m i i d ­ ­ S t h er o m rt ­ Market­ m n t o i a n o n r t n y e i ­ , ­ ac tr t a io n n s s ­ i Total t p l i i e o a b s b r t y i r e l e i d ­ ­ T b U a o r b e n .S l a d e s . s . v T e c U r r o e t . i S n a b s . ­ l . e T b U o a re n n .S a d d s . s . m li t a a a i b r e b k l s i e l e 5 i t ­ ­ a m b b e a r r o n c a k i d a s l 6 Total t p l i i o e a b s b r t y i r e l e i d ­ ­ T b U a o r b e n .S l a d e s . s . z a o g a n r i g t d o i a o n n r n a e i l s ­ ­ 8 ba i n n k s no a t n e d s 3 bo an n d ds notes4 ba i n n k s no a te n s d 3,7 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............. \ f 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 , ,1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 5 5 , , 8 81 1 7 7 3 3, , 3 3 8 9 7 7 3 3 , , 0 0 4 4 6 6 3 3 5 4 1 1 1 1 , , 9 9 6 6 5 0 /29,313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 376 1.722 1964 9............ \29,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 376 1.722 196 5 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 J31,145 1,011 14,841 12,484 860 256 328 913 10,116 4,271 3,743 528 906 1966 9............ \31,020 1,011 14,896 12,539 860 256 328 913 9,936 4,272 3,744 528 905 J35.819 1.033 18,201 14,034 908 711 741 1,807 11,209 4,685 4,127 558 691 1967 9............ \35,667 1.033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 558 677 1968 9............. \ f3 38 8 , , 4 6 7 8 3 7 1 1 . . 0 0 3 3 0 0 1 17 7 , , 4 3 0 4 7 0 1 11 1 , , 3 3 1 1 8 8 4 5 6 29 2 7 7 0 01 1 2 2 , , 5 51 1 8 8 2 2 , , 3 3 4 4 1 1 1 1 4 4 , , 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 , , 4 4 4 4 4 4 4 6 6 0 5 9 7 7 2 2 5 2 io/45,755 1.019 ioi5,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 525 659 1969 9............. \45,914 1.019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 525 663 /47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 647 844 1970—Dec. 9. \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 565 846 /67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 447 1,528 1971—Dec. u \67,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 447 1,523 1972—Dec.. . 82,888 61,526 40,000 5,236 12,108 3,639 543 14,665 5,070 4,645 425 1,627 1973—July... 93,218 71,028 46,138 6,934 12,245 3,705 2,006 '15,315 '5,357 '4,983 374 1,518 Aug... 92.580 70,520 45,721 6,906 12,319 3,555 2,019 '15,083 '5,445 '5,110 335 1,532 Sept... 92,073 69,777 45,174 6,914 12,319 3,355 2,015 '15,031 '5,646 '5,299 347 1,619 Oct. . . 93,175 69,702 45,212 6,929 12,319 3,233 2,009 '15,958 '5,694 '5,320 374 1,821 Nov... 92.581 67,400 43,791 6,207 12,319 3,134 1,849 '17,261 '5,190 '5,500 410 2,010 Dec.. . '92,606 66,810 43,919 5,701 12,319 3,210 1,661 '17,647 '6,146 '5,716 430 2,003 1974—Jan.... '90,111 '63,871 '41,556 5,229 12,321 3,210 1,555 '18,040 '6,279 '5,830 449 '1,921 Feb... 92,022 '64,099 '41,991 5,192 12,322 3,210 1,384 '19,692 '6,438 '6,028 410 1,793 Mar... 95,718 65,527 43,412 5,192 12,329 3,210 1,384 '22,028 '6,745 '6,345 400 1,418 Apr. .. 97,509 67,163 45,184 5,020 12,330 3,210 1,419 '22,060 6,992 6,572 420 1,294 M ay, '109,956 67,959 '46,031 5,013 12,330 3,210 M30 '24,333 '7,062 '6,692 '370 rl,547 Junep.. '103,858 69,993 47,429 5,013 12,330 3,655 1,566 '24,859 '7,296 '6,930 366 1,710 July**.. 106,926 71,071 48,427 5,013 12,330 3,655 1,646 26,547 7,503 7,122 381 1,805 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. 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A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 e a b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 18,194 10,321 1,310 1,582 4,428 250 303 /17,407 8,070 1,867 1,865 5,043 259 303 \17,340 8,062 1,866 1,865 4,997 248 302 J4 15,975 4 7,074 1,624 1,888 4,552 546 291 \4 15,998 4 7,074 1,624 1,911 4,552 546 291 /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 \50,651 30,134 3,980 1,429 13,823 415 870 61,526 34,197 4,279 1,733 17,577 777 2,963 1973 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 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...................................................................................... '63,871 '43,270 3,945 2,446 10,479 838 2,893 Feb...................................................................................... '64,099 '42,391 4,262 2,743 10,878 1,000 2,825 Mar.................................................................................... 65,527 '42,772 4,195 2,887 11,631 1,249 '2,793 Apr..................................................................................... 67,163 42,648 4,309 3,532 12,360 1,402 2,912 May.................................................................................... 68,014 42,816 4,302 3,384 12,988 1,620 2,904 JuneP.................................................................................. 69,993 43,200 4,201 4,005 13,992 1,854 2,741 July*................................................................................... 71,071 42,978 4,125 3,951 15,209 2,055 2,753 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 To nonmonetary international and regional organizations6 Payable in dollars IMF Deposits End of period Total i Total Dem D an e d pos T it i s me 2 b T i c r l e U l e s r a . t S s i a f u . i n ­ r d y s O l t h i e a t o r h b m r e . t 4 r ­ P f r o e a c n y r i u e n c a r i i b g ­ e l n s e in m g v o e es l n d t t ­ 5 Total Demand Time2 b T i c l r c U e l e s a r a . t t S s i e a f u . s i n ­ r d y O s l t i h e a t r o h b m r e . t r 4 ­ cates 3 1969................................ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707.............................. J41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 1971 8............................. / 1 5 5 5 5 , , 4 4 0 2 4 8 5 5 5 5 , , 0 0 1 3 8 6 1 6 0 , , 4 3 5 9 9 9 4 5 , , 2 2 1 09 7 3 3 3 3 , ,0 02 2 5 5 1 6 1 , , 3 3 8 3 5 5 3 3 8 9 6 2 4 4 0 0 0 0 1 1, , 3 36 72 7 7 7 3 3 1 1 9 9 2 2 2 21 1 0 0 8 8 9 9 6 2 1972................................ 60,724 60,228 8,288 5,631 31,850 14,458 496 1,413 86 202 326 800 1973—July..................... 67,925 67,317 8,989 5,879 34,556 17,894 607 1,488 206 116 116 1,049 ................. 67,400 66,790 8,436 6,137 34,257 17,A96u0g.' 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'................... 69,237 68,640 11,307 7,084 31,886 18,363 597 0 1,955 101 86 296 1,471 1974—Jan'.................... 67,278 66,638 10,822 7,027 29,543 19,246 640 0 1,853 95 92 286 1,380 Feb'................... 69,404 68,635 11,473 7.053 30,274 19,834 770 0 1,693 77 66 232 1,318 Mae'.................. 72,936 71,170 11,651 7,168 31,444 21,907 766 0 1,151 96 66 227 762 Apr '................... 74,925 74,219 11,973 7,505 32,676 22,064 706 0 1,109 60 60 209 780 May'.................. 78,389 77,736 11,805 7,784 33,983 24,163 653 0 1,333 95 54 46 1,138 JuneP.................. 80,811 80,019 13,003 8,395 34,038 24,583 792 0 1,593 106 64 91 1,332 Julyp................... 83,775 83,109 12,762 8,820 34,178 27,348 666 1,679 121 60 51 1,448 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 institutions9 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a s r a t . t e s S i a f s u . n i 3 r ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ f r o e c n r i u e c n i r i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O t l h e i t a o r h b m r e t . ­ 4 r c P u f a r o r y r e i e a n n i b c g l i n e es 1969......................... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 (40,499 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....................... 153,661 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—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.'........... 67,282 11,206 6,998 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 41,556 2,379 3,705 29,152 6,192 127 Feb.'........... 67,711 11,396 6,988 30,042 18,516 770 41,991 2,407 3,703 29,917 5,836 127 Mar.............. 71,785 11,554 7,103 31,217 21,145 766 43,412 2,631 3,800 31,064 5,790 127 Apr.............. 73,816 11,913 7,445 32,467 21,284 706 45,184 2,920 3,949 32,312 5,877 127 77,056 11,710 7,731 33,937 23,025 653 46,031 2,352 4,025 33,731 5,796 127 June*5........... 79,218 12,897 8,332 33,947 23,250 792 47,429 2,642 4,277 33,745 6,638 127 Julyp............ 82,096 12,642 8,760 34,128 25,900 666 48,427 2,561 4,468 33,749 7,522 127 To banks To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Deposits T bi r l e U ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 c c e a r t t e if s i­ liab.4 Demand Time2 c c e a r t t e if s i­ liab.4 1969............. 27,709 23,419 16,756 1,999 4,644 4,064 1,711 1,935 107 312 226 19707 ......... 2 2 1 1 , , 1 20 6 8 6 1 1 6 6 , , 9 9 4 1 9 7 1 1 2 2 , , 3 3 8 7 5 6 1 1 , , 3 3 5 2 4 6 3 3 , ,1 2 9 0 7 2 4 4 , , 0 0 2 3 9 9 1 1 , , 6 6 8 8 8 8 1 1 , , 8 8 9 8 5 6 1 1 3 3 1 1 3 3 2 2 5 5 2 2 2 2 0 0 19718........... 1 1 3 4 , , 9 6 5 43 3 1 10 0 , , 7 0 2 3 1 4 7 3 . , 0 3 4 99 7 8 3 5 2 0 0 2 6 , , 1 99 3 5 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 9 6 6 2 2 7 7 1 4 2 2 2 2 8 8 1972—Dec.. 19,310 14,340 4,658 405 9,272 4,645 1,954 2,145 65 481 325 1973—July.. 20,299 '14,898 4,957 3326 9,607 4,989 1,890 '2,245 72 776 418 Aug.. 20,192 '14,599 4,806 '358 10 9,425 5,115 1,876 '2,306 68 861 483 Sept.. 20,330 '14,498 5,070 >436 8,984 5,305 1,972 '2,369 77 881 533 Oct.. 21,278 '15,509 5,250 '479 9,774 5,325 1,977 '2,354 76 912 449 Nov.' 22,762 16,766 5,734 474 10,550 5,506 2,007 '2,511 67 915 495 Dec.' 23,362 17,178 6,941 515 11 9,750 5,716 2,140 2,571 68 936 469 1974—Jan.'. 23,870 17,527 6,329 517 14 10,668 5,830 2,020 2,714 91 1,005 513 Feb.' 25,720 19,050 6,857 526 32 11,635 6,028 2,131 2,758 93 1,045 642 Mar.' 28,373 21,389 6,572 511 54 14,251 6,345 2,351 2,792 98 1,104 639 Apr.. 28,632 21,481 6,601 683 63 14,133 6,572 2,392 2,813 92 1,274 579 May ' 31,025 23,807 7.047 795 82 15,884 6.692 2,312 2,911 124 1,345 665 June** 31,789 24.194 7,839 1,002 95 15,259 6,929 2,415 3,053 107 1,354 539 JulyP. 33,669 26,008 7,649 1.160 204 16,996 7,122 2,432 3,133 175 1,383 539 1 Data exclude “holdings of dollars” of the IMF. 8 Data on second line differ from those on first line because (a) those 2 Excludes negotiable time certificates of deposit, which are included liabilities of U.S. banks to their foreign branches and those liabilities of in “Other.” U.S. agencies and branches of foreign banks to their head offices and 3 Includes nonmarketable certificates of indebtedness issued to official foreign branches, which were previously reported as deposits, are included institutions of foreign countries. in “Other short-term liabilities”; (b) certain accounts previously classified 4 Principally bankers’ acceptances, commercial paper, and negotiable as “Official institutions” are included in “Banks”; and (c) a number of time certificates of deposit. See also note 8(a). reporting banks are included in the series for the first time. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of 9 Foreign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac­ 10 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 ment Bank and the International Development Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May JuneP July* Europe: Austria........................................................... 272 204 166 161 210 279 327 248 298 310 482 Belgium-Luxembourg................................. 1,094 1,411 1,463 1,483 1,593 1,662 1,572 1,795 '1,739 1,827 1,819 284 470 527 659 527 456 380 358 261 266 239 163 135 136 165 178 160 169 140 143 174 203 4,441 4,143 3,415 3,483 3,241 2,967 2,852 2,767 3,018 3,425 3.763 5,346 14,180 14,227 13,227 12,307 12,357 12,275 13,035 '13,778 13,528 12,602 238 280 236 389 262 238 343 285 239 232 222 Italy................................................................ 1,338 1,095 1,224 1,404 1,195 1,119 2,243 1,386 1,435 1,281 1,327 Netherlands................................................... 1,468 2,534 2,866 2,886 2,522 2,502 2,547 2,507 2,407 2,352 2,232 978 999 980 965 961 962 993 923 923 911 878 Portugal......................................................... 416 467 470 534 482 486 450 450 452 411 429 256 284 319 305 264 304 267 289 499 471 548 Sweden........................................................... 1,184 1,787 1,807 1,885 1,975 1,973 1,733 1,475 1,350 1,211 1,160 Switzerland................................................... 2,857 3,316 3,091 3,377 3,281 3,513 3,792 4,228 '5,137 '6,382 7,208 Turkey........................................................... 97 83 75 98 221 146 96 92 95 125 134 United Kingdom......................................... 5,011 6,416 6,473 6,148 6,440 6,186 7,392 7,697 '8,792 8,533 8,294 Yugoslavia.................................................... 117 61 76 86 77 94 78 82 86 100 106 Other Western Europe1............................ 1,483 3,426 2,926 3,352 3,125 3,007 2,946 3,003 '2,494 2,701 2,847 U.S.S.R.......................................................... 11 40 20 22 26 20 29 52 28 27 27 Other Eastern Europe................................ 81 96 101 110 92 96 122 95 104 '126 138 Total....................................................... 27,136 41,426 40,598 40,742 38,982 38,525 40,605 40,905 '43,279 '44,393 44,657 Canada............................................................... 3,467 3,812 3,967 1 3,862 4,158 4,432 3,841 4,553 4,164 3,701 3,721 Latin America: Argentina....................................................... 631 781 766 914 847 895 1,001 1,058 1,180 1,365 1,238 Bahamas 2..................................................... 540 456 806 824 593 1,011 2,016 1,335 '1,833 1,348 1,392 Brazil.............................................................. 605 745 816 860 819 961 837 774 731 782 790 Chile............................................................... 137 137 142 157 178 174 185 224 191 238 263 Colombia....................................................... 210 207 221 247 219 238 238 227 227 217 267 Cuba............................................................... 6 7 6 7 7 8 7 6 6 6 7 Mexico........................................................... 831 1,029 1,132 1,284 1,323 1,343 1,369 1,374 1,416 1,410 1,448 167 231 282 279 281 326 401 408 551 552 558 Peru................................................................ 225 152 124 135 144 154 159 160 162 166 197 Uruguay......................................................... 140 115 112 120 120 115 121 121 132 121 122 Venezuela...................................................... 1,078 1,130 1,420 1,468 1,460 1,636 1,736 2,297 2,248 2,708 2,599 Other Latin American republics.............. 860 742 769 880 947 1,026 1,100 1,144 1,053 1,073 1,192 Netherlands Antilles and Surinam.......... 86 70 63 71 69 61 69 63 95 124 92 Other Latin America.................................. 44 532 556 '359 470 792 659 566 424 450 666 5,560 6,334 7,215 '7,606 7,477 8,741 9,896 9,757 10,249 10,561 10,831 Asia: China, People’s Rep. of (China Mainland) 39 37 40 38 38 39 38 39 39 33 39 China, Republic of (Taiwan).................... 675 779 764 757 735 715 641 573 620 688 772 Hong Kong................................................... 318 363 383 372 389 416 452 453 512 462 470 India............................................................... 98 105 71 85 152 183 133 177 264 225 172 Indonesia....................................................... 108 169 160 133 186 175 240 305 220 257 863 Israel............................................................... 177 279 330 327 337 311 302 275 267 256 226 Japan.............................................................. 15,843 7,061 6,726 6,954 6,417 7,440 8,307 8,668 9,060 9,419 9,973 Korea............................................................. 192 198 210 195 222 204 180 253 234 262 215 Philippines..................................................... 438 479 497 515 570 604 595 642 731 772 762 Thailand........................................................ 171 163 180 247 336 471 607 536 '517 '524 451 Other.............................................................. 1,071 1,139 1,138 1,202 1,306 1,196 1,445 1,942 1,885 2,572 3,634 Total....................................................... 19,131 10,771 10,500 10,826 10,690 11,752 12,940 13,861 '14,350 '15,470 17,578 Africa: Egypt.............................................................. 24 34 63 1 35 72 72 52 68 71 84 91 Morocco........................................................ 12 10 14 11 11 12 17 15 20 39 54 South Africa................................................. 115 103 109 114 97 119 148 83 122 102 170 Zaire............................................................... 21 26 24 87 42 30 42 43 52 58 46 Other.............................................................. 768 747 824 808 837 1,044 1,335 1,500 '1,703 '1,911 2,042 Total..................................................... 939 919 1,034 1,056 1,059 1,277 1,593 1,709 '1,968 2,193 2,403 Other countries: Australia....................................................... 3,027 3,169 3,183 3,131 2,986 2,917 2,849 2,979 2,980 2,831 2,848 All other........................................................ 51 59 55 59 74 66 60 52 68 69 58 Total....................................................... 3,077 3,228 3,238 3,190 3,059 2,984 2,909 3,031 3,047 2,900 2,906 Total foreign countries.................................. 59,310 66,490 66,552 '67,282 65,426 67,711 71,785 73,816 '77,056 '79,218 '82,096 International and regional: International 3............................................... 951 '1,402 '1,609 '1,627 '1,536 1,404 863 840 1,038 1,250 1,328 Latin American regional............................ 307 '300 '291 '272 '257 228 226 217 226 222 248 Other regional4............................................ 156 66 62 57 '61 61 62 51 69 122 102 Total....................................................... 1,413 1,768 1,962 1,955 '1,853 1,693 1,151 1,109 1,333 1,593 1,679 Grand total........................................... 60,724 68,258 68,514 '69,237 '67,278 69,404 72,936 74,925 '78,389 '80,811 83,775 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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.: 2 3 9 19 10 Kuwait.............................................. 16 39 36 28 9 9 12 8 11 Laos.................................................. 3 2 3 3 15 17 22 62 53 Lebanon........................................... 60 55 55 62 68 Malaysia.......................................... 25 54 59 58 40 Other Latin American republics: 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 53 141 165 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............................................ 123 132 127 156 245 185 135 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 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 14 23 19 23 20 Other Latin America: Liberia.............................................. 25 30 31 42 29 Bermuda................................................ (2) (2) 127 242 201 296 393 312 331 British West Indies............................. 23 36 100 109 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 7 10 11 7 17 Burma.............................................. 5 2 17 12 Uganda............................................ 10 7 19 6 11 Cambodia............................................. 2 3 3 2 4 7 28 37 22 Iran......................................................... 88 93 114 124 243 Iraq......................................................... 9 10 26 101 All other: Jordan.................................................... 2 4 4 6 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. categories (except “Other Eastern Europe”). 6 Included in Japan after Apr. 1972. 9. 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 r87 r9 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—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...................... r\,467 761 r706 310 296 r100 165 66 245 M32 5 78 16 1974—Jan....................... '•1,496 r821 r675 310 275 r90 165 65 236 r 119 2 78 10 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...................... 1,671 1,025 646 294 263 89 165 56 227 133 2 50 13 May.................... r 1,660 1,005 r655 296 r285 74 165 56 220 r 147 2 52 13 June?3................. rl,653 974 678 321 r285 73 165 56 220 146 2 77 12 July*5................... 1,677 984 693 319 299 75 171 56 233 142 2 77 13 1 Excludes central banks, which are included with “Official institutions.” 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1974 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June** July*5 Europe: 6 6 7 7 7 7 7 7 7 7 7 7 9 135 135 165 165 165 235 235 260 260 260 260 260 260 42 37 37 37 38 34 33 32 34 33 35 34 35 275 236 247 290 400 423 437 450 439 460 470 427 430 Other Western Europe..................... 85 85 85 85 85 86 91 91 90 89 87 89 97 Eastern Europe.................................. 5 5 5 5 5 5 5 5 5 5 5 5 5 Total............................................ 547 504 546 588 700 789 808 845 835 854 826 822 836 Canada..................................................... 560 560 560 560 567 582 597 832 847 848 849 849 851 Latin America: Latin American republics................. 4 8 9 9 11 11 11 11 11 11 11 11 11 Other Latin America........................ 3 3 3 3 3 3 3 3 3 3 5 5 5 Total............................................ 7 11 12 12 14 14 14 14 14 14 16 16 16 Asia: Japan.................................................... 5,977 5,949 5,950 5,950 5,143 4,552 4,066 3,718 3,703 3,531 3,499 3,498 3,497 Other Asia.......................................... 9 9 11 11 11 11 11 11 11 11 12 12 12 Total............................................ 5,987 5,959 5,961 5,961 5,154 4,563 4,077 3,729 3,714 3,542 3,510 3,510 3,509 183 183 158 158 158 158 158 157 157 157 157 157 156 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries......................... 7,308 7,241 7,261 7,303 6,617 6,131 5,678 5,602 5,592 5,440 5,383 5,379 5,394 International and regional: International....................................... 1 1 21 6 1 1 20 51 217 141 174 57 51 Latin American regional................. 28 45 45 47 47 48 49 49 49 44 41 60 75 Total............................................ 29 46 66 53 48 49 69 100 267 185 214 117 126 Grand total................................ 7,337 7,287 7,327 7,356 6,665 6,179 5,747 5,702 5,859 5,625 5,597 5,496 5,520 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 n i 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 c e e p e c r r 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 o n u c p n o v r a a d i n m t p t , i c e e f l s e i r . 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 Q70 1 (15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 \15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973—July r................... 19,014 18,151 7,023 162 3,925 2,935 3,871 3,922 3,335 863 561 151 151 Aug.r................. 18,980 18,094 6,971 176 4,028 2,767 3,948 3,716 3,458 887 488 151 248 Sept.r................. 18,727 17,950 6,807 160 3,918 2,729 4,070 3,718 3,355 777 459 143 175 Oct.r................... 19,300 18,440 6,979 216 3,988 2,775 4,099 3,774 3,588 861 510 187 163 Nov.r................. 19,590 18,799 7,068 252 4,084 2,732 4,287 3,788 3,655 790 512 131 148 Dec.r................. 20,721 20,059 7,717 271 4,589 2,857 4,306 4,155 3,881 662 428 119 115 1974—Jan '................... 21,083 20,281 7,410 303 4,429 2,678 4,386 4,107 4,377 802 467 162 173 Feb.'.................. 22,970 22,126 7,947 303 4,992 2,652 4,426 4,554 5,199 844 594 121 129 Mar.r................. 25,656 24,807 9,078 421 5,813 2,844 4,641 5,125 5,962 849 545 160 144 Apr...................... 26,564 25,707 9,578 346 6,152 3,079 4,805 5,810 5,515 857 589 99 169 Mayr.................. 29,624 28,741 9,960 363 6,384 3,213 5,080 6,486 7,214 884 611 113 160 June**................. 32,092 31,135 11,498 386 7,758 3,354 5,102 7,438 7,097 957 687 130 141 July2*................... 33,357 32,345 10,917 461 6,865 3,590 5,151 9,007 7,270 1,012 636 203 173 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

SEPTEMBER 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 Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May JuneP JulyP Europe: 8 15 14 11 14 36 20 40 32 104 18 120 150 145 148 134 143 216 188 155 231 267 59 50 53 48 50 60 76 57 67 63 42 118 97 89 108 106 93 97 115 124 131 147 330 461 525 621 649 682 743 721 624 727 701 321 366 392 311 342 382 395 355 441 421 366 29 26 23 35 41 36 37 47 48 49 61 Italy................................................................ 255 282 363 316 313 330 482 507 512 572 442 108 132 172 133 139 147 174 169 202 212 165 69 74 82 72 85 91 76 91 96 r91 87 Portugal......................................................... 19 23 22 23 25 25 37 29 33 32 30 207 183 189 222 208 180 284 318 322 404 392 164 155 177 153 135 106 121 132 95 117 119 Switzerland................................................... 125 242 203 176 240 338 270 327 417 663 386 6 8 16 10 11 9 16 18 8 10 26 United Kingdom......................................... 997 1,236 1,210 1,456 1,490 1,621 2,009 1,627 2,179 r2,363 2,282 Yugoslavia..................................................... 22 8 19 10 9 15 12 13 25 20 26 20 34 26 27 19 20 22 28 55 26 19 U.S.S.R.......................................................... 41 49 51 46 29 36 33 30 38 47 35 Other Eastern Europe................................ 49 87 72 59 64 65 70 65 95 84 105 Total....................................................... 3,067 3,678 3,843 3,985 4,104 4,416 5,190 4,875 5,568 r6,365 5,716 1,914 2,210 1,979 1,960 1,880 2,037 2,243 2,191 2,363 2,195 2,339 Latin America: 379 469 485 498 521 539 679 686 641 669 683 Bahamas 1..................................................... 519 702 r614 r875 r579 rl,043 rl ,289 1,126 1,944 1,887 1,559 649 837 826 900 953 958 1,114 1,180 1,315 1,476 1,500 Chile............................................................... 52 80 125 151 136 155 180 193 165 182 209 Colombia....................................................... 418 423 413 397 425 428 4*59 467 473 515 593 Cuba............................................................... 13 15 13 12 11 11 13 13 13 13 12 1,202 1,368 1,337 1,370 1,344 1,418 1,426 1,627 1,652 1,718 1,768 Panama.......................................................... 244 273 263 266 294 297 345 390 406 386 393 Peru................................................................ 145 208 204 178 186 184 194 224 264 280 348 Uruguay......................................................... 40 45 47 55 58 51 44 38 38 40 59 Venezuela...................................................... 383 436 469 517 482 510 586 627 557 605 643 Other Latin American republics.............. 388 431 465 490 542 546 600 617 618 663 683 Netherlands Antilles and Surinam.......... 14 23 17 13 17 19 29 20 27 41 38 Other Latin America.................................. 36 137 124 140 356 461 268 281 191 r298 231 Total....................................................... 4,480 5,450 r5,403 '5,863 r5,906 r6,621 r7,226 7,489 8,303 r8,772 8,719 Asia: China, People’s Rep. of (China Mainland) 1 22 36 31 24 19 27 19 18 23 28 China, Republic of (Taiwan).................... 194 128 117 140 119 147 183 231 315 348 392 Hong Kong................................................... 93 121 124 147 169 189 170 179 166 207 198 India............................................................... 14 14 16 16 16 15 19 18 25 18 20 Indonesia....................................................... 87 89 96 88 105 107 97 71 105 115 116 Israel............................................................... 105 145 155 166 153 140 165 140 135 158 205 Japan.............................................................. 4,152 5,746 6,034 6,400 6,466 6,960 7,857 8,607 9,715 10,798 12,361 Korea............................................................. 296 372 369 403 432 477 498 555 632 597 620 Philippines..................................................... 149 105 118 181 189 182 197 228 258 297 292 Thailand......................................................... 191 206 225 273 322 364 405 434 389 r416 423 Other.............................................................. 300 349 377 394 466 560 521 671 661 r712 819 5,584 7,297 7,666 8,238 8,463 9,159 10,138 11,153 12,416 r13,689 15,474 Africa: 21 38 40 35 42 40 42 44 54 58 59 Morocco........................................................ 4 4 7 5 4 4 21 9 4 5 14 South Africa................................................. 143 150 147 129 133 134 131 153 206 202 210 Zaire............................................................... 13 51 61 60 56 67 61 79 72 91 93 Other.............................................................. 118 163 155 159 178 175 210 192 218 266 273 299 406 410 388 413 420 466 477 554 r622 649 Other countries: 291 223 251 243 279 268 328 318 353 378 396 40 36 36 43 37 49 64 59 66 n\ 64 330 259 287 286 316 317 392 377 420 r449 459 15,674 r19,299 r19,589 r20,720 r21,082 r22,969 '25,655 26,563 29,623 32,091 33,357 International and regional............................ 3 1 1 1 1 1 1 1 1 1 1 Grand total.......................................... 15,676 r19,300 r19,590 r20,721 r21,083 r22,970 r25,656 26,564 29,624 '•32,092 33,357 i Includes Bermuda through Dec. 1972. their own account or for account of their customers in the United States; Note.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities, foreigners, where collection is being made by banks and bankers for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l ri r es Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1970................... 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971................... 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 i cm j J4,954 4,539 833 430 3,276 375 40 145 704 406 1,996 319 881 503 15,029 4,555 836 430 3,289 435 40 145 701 406 2,012 353 900 514 1973—July »•. .. 5,626 5,119 957 554 3,609 453 54 128 1,029 517 1,980 315 1,122 535 Aug.r.. . 5,522 5,012 1,002 516 3,495 464 46 137 1,007 404 1,961 309 1,157 548 Sept.r... 5,408 4,885 1,010 509 3,365 454 70 131 976 418 1,939 256 1,186 501 Oct.r.. . 5,591 5,037 1,041 540 3,456 474 80 130 1,012 491 1,978 252 1,203 514 Nov....... 5,786 5,248 1,127 557 3.563 461 78 138 1,059 484 2,086 255 1,246 516 Dec.r... 5,880 5,330 1,129 574 3,627 478 72 140 1,099 490 2,089 247 1,282 533 1974—Jan ... 5,821 5,273 1,115 563 3,595 469 79 137 1,102 486 2,050 263 1,284 509 Feb... 5,872 5,272 1,171 584 3,517 522 79 144 1,159 457 2,059 249 1,293 511 Mar.r... 6,048 5,433 1,245 640 3,548 540 75 146 1,264 473 2,127 248 1,300 490 Apr.r... 6,661 6,019 1,542 734 3,744 566 76 191 1,550 478 2,340 246 1,328 529 May r... 6,707 6,090 1,539 755 3.796 549 67 214 1,535 467 2,402 233 1,336 520 June**... 6,961 6,350 1,589 775 3,985 545 66 212 1,663 496 2,454 236 1,387 514 July33. .. 6,976 6,379 1,460 871 4,048 530 67 239 1,581 483 2,517 261 1,379 516 1 Excludes central banks, which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date. reporting coverage. Figures on the first line are comparable in coverage 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 c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h e a s t a s l e e p s s u o r r ­ regional Total Official Other 1971............................... 1,672 130 1,542 1,661 -119 14,593 13,158 1,435 1,687 2,621 -935 1,385 1,439 -57 1972............................... 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 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.-July^........ 659 77 -737 -687 -49 8,777 7,801 976 635 1,906 -1,271 1,366 1,159 207 1973—July r................. -79 -71 -9 -9 1,320 898 422 101 207 -106 108 107 1 Aug.r................ -51 17 -68 -28 -39 1,328 864 464 96 157 -61 117 125 -8 Sept.r................ 40 20 20 8 12 1,174 963 212 67 101 -34 115 105 10 Oct.r................. 29 -13 42 15 27 1,807 1,722 86 97 336 -238 129 131 -2 Nov. r............... -691 -5 -686 -722 36 1,948 1,692 256 104 317 -213 156 178 -22 Dec.r................ -486 1 -487 -506 19 1,336 1,359 -23 144 209 -65 159 144 15 1974—Jan. »•................. -432 20 -452 -472 19 1,717 1,454 263 71 364 -292 209 207 2 Feb. »•................. -45 31 -77 -37 -39 1,202 1,189 13 100 145 -45 206 206 -1 Mar r................ 157 166 -10 -10 1,672 1,484 188 102 398 -295 167 183 -16 Apr.r................. -234 -82 -152 -171 20 1,060 844 216 103 323 -219 189 155 34 Mayr................ -28 29 -57 -7 -50 903 852 51 89 154 -64 173 174 -2 Junep................ -100 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 July33................. 23 9 14 14 1,048 1,054 -6 94 251 -157 216 116 100 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

SEPTEMBER 1974 □ 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 Other] sales (—) dom 1971....................... 11,626 10,894 731 87 131 219 168 -49 71 627 -93 37 108 52 1972....................... 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973....................... 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 1974—Jan.-July*1 4,794 4,405 389 159 19 266 109 -79 41 515 -42 -53 -46 15 1973—July........... 880 564 316 67 -19 25 80 28 28 210 19 11 71 5 Aug............ 972 631 341 53 1 60 57 40 34 245 10 11 81 -6 Sept........... 948 734 214 63 6 18 54 15 14 169 * 27 21 -3 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............. 976 802 174 68 4 37 43 28 23 202 -27 -42 33 9 Feb............ 743 586 157 39 5 54 40 -6 33 163 * 1 -9 1 Mar........... 896 846 49 14 -26 40 24 14 25 91 -21 9 -29 -1 Apr............ 575 559 16 22 17 35 -5 -14 -35 19 -10 2 3 2 May.......... 521 591 -15 18 7 29 5 -36 -5 19 -7 -16 -14 2 JuneP........ 520 513 8 -15 8 33 11 -18 -3 16 13 -7 -15 2 July*1......... 507 508 -1 13 5 39 -9 -48 3 3 10 -2 -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 ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1971....................... 703 15 35 -1 216 327 39 631 37 19 -2 * -21 39 1972....................... 1,881 336 77 74 135 367 315 1,303 82 22 323 * 148 1973....................... 1,948 201 -33 -19 307 275 473 1,204 49 44 588 * 10 52 1974—Jan.-Julyp 586 79 33 185 81 225 -40 564 20 13 -218 * 9 197 1973—July........... 106 * -57 * 13 -15 7 -52 3 4 1 * * 150 Aug........... 123 31 1 1 -5 57 10 94 -1 4 2 * * 24 Sept........... -2 2 * * -1 14 12 26 -1 1 11 * * -39 Oct............ -11 53 * 1 46 -14 1 86 4 1 1 * ♦ -103 Nov........... -138 4 11 -2 28 76 5 122 -21 3 -209 * * -33 Dec............ — 19 9 10 4 37 60 32 152 * 16 -183 * -3 1974—Jan............. 89 3 25 * 23 117 -9 159 14 1 -104 * * 18 Feb............ -144 1 * * * 45 -15 30 -2 -5 -119 * * -47 Mar........... 139 1 * -2 6 -79 -6 -81 -1 6 -1 * 215 Apr............ 200 60 3 * 8 23 17 111 4 -1 * * * 86 May.......... 66 10 * * 28 -19 1 59 3 5 3 * * -3 June**........ 242 5 3 116 15 64 -17 185 1 4 -3 * * 56 July^........ -5 -1 2 72 2 36 -11 100 1 5 7 * 10 -128 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—June.............................. 419 300 1972................. — 622 — 90 -532 505 — 635 —69 -296 — 66 29 Sept.............................. 333 320 1973................. — 818 139 — 957 —141 -569 -120 — 168 3 37 311 314 1974— 325 379 Jan.-July ^ -1,158 17 -1,175 -389 -924 -50 181 -5 13 June.............................. 312 339 286 336 1973—July.... -105 3 -108 -13 -93 -13 9 * 2 372 405 Aug---- -69 5 -75 -21 -44 -4 -8 * 3 Sept___ -25 4 -28 -28 8 -8 -1 « 2 310 364 Oct........ -240 4 -243 -25 -148 -8 -64 1 1 June.............................. 316 243 Nov... -236 9 -245 -47 -89 -6 -104 * * 290 255 Dec.... -50 51 -101 -45 -11 -15 -34 2 3 333 231 1974—Jan -291 -4 -287 -81 -204 -2 -1 -1 2 1974—Mar.p........................... 384 227 Feb.. . . -46 6 -52 -62 -11 -9 32 -4 1 June?........................... 354 243 Mar---- -311 4 -315 -24 -288 -15 10 * 3 Apr.. .. -185 3 -188 -49 -157 6 12 * * May. .. -66 5 -71 -26 -35 -22 10 * 3 Note.—Data represent the money credit balances and June».. -108 3 -110 -78 -121 -6 94 1 * money debit balances appearing on the books of reporting JulyP... -151 1 -152 -69 -108 -1 24 1 3 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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.. 59,939 4,755 2,302 2,454 53,423 11,223 23,599 1,164 17,436 1,760 1972—Dec.. 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 2,220 1973—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.. 117,325 5,808 2,848 2,961 106,041 18,462 51,975 2,108 33,497 5,476 Dec.. 121,951 4,882 1,882 3,000 112,323 19.222 55,910 2,503 34,687 4,746 1974—Jan.. , 123,912 4,605 1,552 3,054 114,703 19,497 57,032 2,733 35,441 4,604 Feb.. 127,240 4,696 1,893 2,802 c117,765 20,341 57,163 2,957 37,020 5,064 Mar.. 136,983 7,986 5,383 2,603 123,823 22,268 60,435 3,030 38,090 5,174 Apr.. 139,532 6,257 3,682 2,575 128,187 22,854 62,334 3,629 39,370 5,087 May. 145,362 8,152 5,585 2.567 131,796 24,376 64,635 3,645 39,141 5,414 June. 146,877 6,843 4,166 2,677 134,413 24,859 64,345 3,560 41,649 5,621 Payable in U.S. dollars... 1971—Dec.. 39,149 4.502 2,295 2,207 34.093 6.659 17,341 861 9,233 553 1972—Dec.. 52.636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—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.. 73.637 5,336 2,787 2,549 66,595 11.874 34,992 1,302 18,427 1,705 Dec.. 79,502 4,428 1,844 2,583 73,308 12,844 39,052 1,587 19,824 1,767 1974—Jan............... 81,949 4,166 1,515 2,651 76,033 13,253 40,027 1,848 20,905 1,749 Feb.............. 83,907 4,311 1,838 2,473 77,679 13,769 40,185 2,024 21,701 1,918 Mar.............. 92,838 7,640 5,359 2,281 83,272 15,776 42,971 1,977 22,548 1,925 Apr.............. 94,127 5,886 3,635 2,251 86.093 15,954 44,379 2,726 23,034 2,148 May............. 100,155 7.806 5,537 2,269 89,876 16.874 47,330 2,840 22,831 2,473 June............. 101,509 6,521 4,116 2,405 92,420 17,357 47,753 2,803 24.507 2.568 IN UNITED KINGDOM Total, all currencies......... 1971—Dec.. 34,227 2,693 1,230 1,464 30,675 5,690 15,965 473 8,546 859 1972—Dec.. 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1,018 1973—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 10,706 36,192 887 15,235 1,986 Apr.. 68,914 2,713 1,876 837 64,104 10,695 36,765 1,073 15,572 2,097 May. 71,935 3,787 2,969 818 65,966 11,759 37,882 889 15,435 2,182 June. 71.307 3,731 2,787 943 65,451 11,886 36,408 812 16,346 2.125 Payable in U.S. dollars. 1971—Dec.. 24,210 2,585 21,277 4,135 12,572 4,571 348 1972—Dec.. 30,257 2,146 27,664 4,326 17,874 5,464 446 1973—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 22,650 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 8,240 25,365 8,608 882 Apr.. 46,419 2,623 42,771 8,262 25,768 8,741 1,024 May. 49,608 3,688 44,784 9,285 26,957 8,542 1,135 June. 49,375 3,632 44,618 9,4251 26,097 9,097 1.125 IN BAHAMAS AND CAYMANS1 Total, all currencies............................ 1971—Dec.. 8,234 1,274 496 777 6,871 3,620 3,251 90 1972—Dec.. 12,642 1,486 214 1,272 10,986 6,663 4,322 170 1973—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 3,299 1,787 1,512 24,534 14,600 9,934 611 Apr.. 28,776 2,280 802 1,478 25,873 15,496 10,376 623 May. 30,862 3,164 1,697 1,467 26,953 17,029 9,924 744 June.............1.31,217 2,262 816 1,446 28,168 17,537 10,630 787 For notes see p. A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 3,061 658 2,403 54,798 10,789 29,825 5,472 8,712 2,081 ............1971—Dec. .. .Total all currencies, 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 ............1972—Dec. 4,456 1,005 3,451 87,999 12,918 51,863 9,483 13,735 3,651 4,368 1,200 3,169 92,702 14,634 54,072 9,575 14,421 3,917 .........................July 4,607 1,083 3,524 93,645 15,627 54,493 8,494 15,031 4,140 4,728 1,180 3,548 98,699 16,609 57,624 8,635 15,831 4,652 4,680 1,298 3,382 101,719 17,253 59,304 9,073 16,089 4,688 4,776 1,084 3,692 106,909 17,673 63,274 9,542 16,420 5,641 5,070 1,158 3,912 111,754 18,233 65,650 10,094 17,777 5,128 5,319 1,738 3,581 113,807 18,531 67,838 9,547 17,890 4,756 ............1974—Jan. 5,853 2,009 3,844 116,440 18,942 67,979 10,119 19,399 4,947 .........................Feb. 6,656 2,127 4,530 125,002 21,043 71,936 10,474 21,550 5,324 6,875 2,368 4,507 127,280 22,469 71,600 11,196 22,015 5,377 8,132 2,930 5,201 131,340 23,605 74,395 11,404 21,936 5,891 8,550 3,011 5,539 131,803 23,883 71,889 13,649 22,380 6,524 2,624 503 2,121 37,080 6,663 21,116 4,391 4,910 1,250 ............1971—Dec. . Payable in U.S. dollars 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 ............1972—Dec. 3,911 866 3,045 57,139 8,376 34,403 7,247 7,114 1,783 3,775 1,036 2,739 58,799 9,219 35,153 7,005 7,421 1,882 .........................July 4,057 943 3,114 59,347 10,237 35,458 6,165 7,487 2,092 4,146 1,021 3,125 62,196 10,627 37,260 6,242 8,067 2,263 4,135 1,139 2,996 63,693 11,312 '37,662 6,337 '8,382 2,230 4,190 928 3,262 68,438 11,825 41,598 6,290 8,724 3,107 4,488 993 3,495 73,284 12,571 43,702 7,327 9,684 2,611 4,820 1,609 3,211 74,920 12,754 44,990 7,172 10,003 2,473 ............1974—Jan. 5,349 1,857 3,493 76,732 12,942 44,853 7,809 11,128 2,466 .........................Feb. 6,086 1,924 4,161 84,471 15,041 49,065 8,205 12,159 2,799 6,316 2,195 4,121 85,673 15,830 48,252 8,792 12,800 2,898 7,430 2,741 4,689 89,706 16,628 51,078 9,057 12,943 3,443 7,944 2,810 5,134 90,274 16,995 49,139 10,937 13,203 3,992 IN UNITED KINGDOM 1,653 109 1,544 31,814 3,401 18,833 4,454 5,126 760 ............1971—Dec. .. .Total, all currencies 1,453 113 1,340 41,020 2,961 24,596 6,433 7,030 994 ............1972—Dec. 1,957 122 1,835 47,936 3,321 29,151 7,565 7,899 1,310 1,875 163 1,711 50,707 3,883 30,797 7,793 8,234 1,414 2,080 171 1,909 49,293 3,731 30,266 6,730 8,565 1,508 2,125 161 1,964 51,957 4,118 31,963 6,929 8,947 1,759 2,026 129 1,897 53,475 4,036 '33,341 7,118 '8,980 1,805 2,197 143 2,054 57,042 3,886 36,052 7,680 9,424 2,657 2,431 136 2,295 57,311 3,944 35,063 8,056 10,248 1,990 2,429 346 2,083 59,356 4,350 36,996 7,679 10,332 1,941 ............1974—Jan. 2,573 269 2,303 58,956 4,193 35,489 8,160 11,112 2,057 3,167 353 2,814 63,096 4,587 37,836 8,456 12,217 1,813 3,123 409 2,714 63,914 4,975 36,700 9,064 13,175 1,877 3,727 749 2,978 66,111 4,890 39,706 9,111 12,404 2,097 3,744 606 3,138 65,433 4,913 36,828 11,162 12,530 2,130 1,405 23 1,383 22,852 2,164 13,840 3,666 3,181 372............1971 Dec. . Payable in U.S. dollars 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 ............1972—Dec. 33,491 1,731 102 1,629 31,185 2,234 18,318 5,971 4,663 575 ............1973—June 33,803 1,661 148 1,513 31,549 2,316 18,639 5,855 4,738 593 1,846 148 1,698 30,433 2,213 18,566 4,995 4,660 681 1,866 137 1,729 32,213 2,245 19,836 5,110 5,022 807 35,342 1,831 103 1,727 32,781 2,515 '20,195 4,934 '5,137 730 39,527 1,940 119 1,821 36,032 2,468 23,059 4,971 5,534 1,555 39,658 2,173 113 2,060 36,646 2,519 22,135 5,839 6,152 839 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 45,579 2,927 329 2,598 41,708 3,063 24,300 6,694 7,650 945 46,323 2,878 384 2,494 42,453 3,234 23,382 7,225 8,612 992 49,255 3,480 724 2,756 44,580 3,083 26,128 7,306 8,064 1,194 48,982 3,516 579 2,937 44,228 3,255 23,794 9,010 8,170 1,238 -S'” IN BAHAMAS AND CAYMANS i 8,236 747 7,305 1,649 4,539 1,116 183 ............1971—Dec. .. .Total, all currencies 12,643 1,220 11,260 1,818 8,105 1,338 163 ............1972 Dec. 15,613 1,458 13,829 2,272 10,170 1,387 326 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 20,673 1,608 18,464 4,321 12,255 1,887 601 20,698 1,663 18,463 4,591 11,902 1,969 572 21,504 1,559 19,363 4,744 12,857 1,762 582 23,771 1,517 21,803 5,526 14,453 1,824 451 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 28,444 2,192 25,692 6,591 16,793 2,309 560 r2,202 26,095 7,200 16,784 2,111 479 2,567 27,704 8,255 16,759 2,690 591 2,854 27,723 7,647 17,146 2,931 639 For notes see p. A-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 E p n er d i o o d f Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked E pe n r d i o o d f 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 ­ ­ U K d n i o n i m t g ed ­ 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 1,141 697 150 173 121 372 443 1973—A Se u p g t . . . . 2 2 5 5 9 0 5 5 5 5 , , 8 4 5 0 5 7 1 1 5 5 , , 4 4 5 3 5 7 1170 7/ 1!■_ _“rL/wCv «2^ 1 » 1 \ /l 1 , ,5 6 0 4 7 8 1 1 , ,0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 8 77 0 4 5 4 8 3 7 Oct... 426 54,766 317,122 N D o ec v . . . . . 4 2 2 51 0 5 5 2 2 , , 9 0 9 7 8 0 1 1 7 7 , , 1 0 0 68 4 1v Qy 71 0a —Tiftn 2 • . • / 1 I 2, , 3 9 7 6 5 5 1 1, , 9 4 1 4 2 6 1 5 6 5 9 3 3 4 0 0 7 4 68 2 9 7 1 0 2 2 4 5 8 3 5 5 1974—Jan... 392 49,582 17,044 1973—June, , . . 3,312 2,652 74 453 134 1,157 882 Feb.. 542 50,255 17,039 July......... 3,340 2,561 136 475 167 1,128 959 Mar.. 366 51,342 17,037 Aug......... 3,424 2,643 82 490 209 1,117 940 Apr.. 517 52,642 17,026 Sept.......... 3,287 2,573 78 476 161 1,142 892 May. 429 54.195 17,021 Oct........... 2,993 2,329 66 451 148 1,063 881 June.. 384 54,442 17,014 Nov......... 3,241 2,604 64 437 136 1,121 922 July.. 330 54,317 16,964 Dec.......... 3,185 2,604 37 431 113 1,128 775 Aug.. 372 53,681 16,917 1974—Jan........... 2,859 2,286 59 365 149 1,091 772 Feb.......... 3,254 2,618 65 368 203 1,222 868 1 Marketable U.S. Treasury bills, certificates of in­ Mar.......... 3,692 3,018 99 358 218 1,366 1,029 debtedness, notes, and bonds and nonmarketable U.S. Apr.......... 3,585 2,966 60 351 209 1,480 928 Treasury securities payable in dollars and in foreign May......... 3,671 3,036 71 337 227 1,434 974 currencies. June......... 3,605 3,002 57 37b 181 1,403 869 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 1f oreign 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 1970—June....................... 2,387 1,843 543 4,457 3,868 234 355 Sept........................ 2,512 1,956 557 4,361 3,756 301 305 Dec........................ 2,677 2,281 496 4,160 3,579 234 348 1971—Mar........................ 2,437 1,975 462 4,515 3,909 232 374 June....................... 2,375 1,937 438 4,708 4,057 303 348 Sept........................ 2,564 2,109 454 4,894 4,186 383 326 Dec.1..................... \ J 2 2 , , 7 7 6 0 3 4 2 2, , 3 2 0 2 1 9 4 4 6 7 3 5 5 5 , , 1 0 8 0 5 4 4 4 , , 4 5 6 3 7 5 2 3 9 1 0 8 2 3 4 3 7 3 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.11..................... / \ 3 3 , ,5 11 33 9 2 3 , , 6 0 3 2 5 2 4 5 8 11 4 6 5 , , 3 7 7 2 3 3 5 5, , 6 0 9 7 5 4 4 3 1 9 1 6 2 2 3 8 8 2 1973—Mar........................ 3,460 2,938 522 7,200 6,300 464 437 June....................... 3,435 2,856 579 7,437 6,574 503 360 Sept........................ 3,757 3,034 723 7,809 6,855 535 418 Dec........................ 4,215 3,432 782 8,575 7,641 489 445 1974—Mar.p..................... 4,691 3,789 902 10,628 9,671 411 546 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compa­ because 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

SEPTEMBER 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 1974 1972 1973 1974 Dec. June Sept. Dec. Mar.* Dec. June Sept. Dec. Mar.p Europe: Austria......................................................... 2 2 2 3 4 19 17 15 17 16 Belgium-Luxembourg.............................. 83 81 129 131 221 73 109 112 106 153 Denmark..................................................... 7 19 18 9 17 29 20 21 46 37 Finland........................................................ 4 4 7 7 8 25 21 31 44 42 France......................................................... 167 165 165 168 161 231 325 283 310 413 Germany, Fed. Rep. of........................... 164 189 200 236 238 195 278 265 284 336 Greece......................................................... 15 24 33 40 21 35 40 52 51 87 Italy............................................................. 121 103 108 116 136 202 201 201 237 327 Netherlands................................................ 109 113 115 134 123 84 96 119 118 111 Norway....................................................... 14 13 10 9 9 16 19 21 18 22 Portugal....................................................... 4 4 12 13 24 19 25 24 50 112 Spain............................................................ 81 72 79 77 68 157 140 169 244 414 Sweden........................................*.............. 13 25 32 48 43 57 49 53 71 74 Switzerland................................................ 105 81 142 103 94 82 90 67 101 90 Turkey........................................................ 4 3 11 18 26 48 14 17 34 41 United Kingdom....................................... 1,104 775 855 938 1,129 1,223 1,495 1,544 1,559 1,857 Yugoslavia.................................................. 7 17 22 28 31 12 18 21 49 30 Other Western Europe............................ 2 3 3 3 3 12 9 12 15 19 Eastern Europe.......................................... 3 22 24 31 26 42 92 73 104 79 Total.................................................... 2,010 1,716 1,966 2,113 2,383 2,561 3,059 3,100 3,457 4,259 Canada............................................................. 215 250 236 255 321 965 1,305 1,341 1,251 1,532 Latin America: Argentina.................................................... 29 24 24 38 49 79 60 65 75 94 Bahamas1.................................................. 391 435 364 419 206 662 766 746 633 761 Brazil........................................................... 35 47 42 64 78 172 183 208 230 410 Chile............................................................. 18 13 13 20 6 34 29 34 42 78 Colombia.................................................... 7 7 8 9 18 39 36 43 40 44 Cuba............................................................. 1 * * * * 1 1 1 1 1 Mexico........................................................ 27 37 36 45 68 181 203 185 235 260 Panama....................................................... 18 18 17 13 14 85 83 102 120 178 Peru............................................................. 4 6 10 15 17 36 34 37 49 66 Uruguay...................................................... 7 3 2 2 3 4 5 5 5 6 Venezuela................................................... 21 23 24 50 69 92 101 104 143 143 Other L.A. republics................................ 45 47 58 67 66 95 103 127 134 172 Neth. Antilles and Surinam................... 10 11 7 6 5 13 11 9 12 12 Other Latin America................................ 4 19 20 22 37 34 90 105 214 158 Total.................................................... 616 689 626 770 637 1,527 1,705 1,771 1,932 2,382 Asia: China, People’s Republic of (China Mainland)............................................... 32 31 36 42 20 * 11 48 11 8 China, Rep. of (Taiwan)......................... 26 37 31 34 53 65 77 77 120 183 Hong Kong................................................ 12 13 18 41 24 33 40 44 47 65 India............................................................. 7 7 7 14 14 34 29 32 37 36 Indonesia..................................................... 16 15 15 14 13 48 47 52 54 51 Israel............................................................ 19 14 11 25 31 31 27 28 38 38 Japan........................................................... 224 290 350 298 377 475 506 641 837 1,157 Korea........................................................... 21 18 20 37 38 68 46 56 105 109 Philippines.................................................. 16 20 17 17 9 59 64 70 73 88 Thailand...................................................... 5 6 6 6 7 23 24 28 28 53 Other Asia.................................................. 152 140 179 233 355 206 207 207 238 260 Total.................................................... 530 592 692 761 940 1,042 1,079 1,283 1,588 2,048 Africa : Egypt........................................................... 32 20 11 25 48 16 23 28 18 15 South Africa............................................... 8 6 6 14 22 52 51 60 62 69 Zaire............................................................. 1 12 19 19 21 8 15 19 19 20 Other Africa............................................... 63 67 97 128 134 93 97 95 127 162 Total.................................................... 104 105 134 187 224 170 187 202 225 266 Other countries: Australia..................................................... 45 72 94 118 134 83 75 90 97 111 All other..................................................... 14 11 9 12 22 23 26 22 25 30 Total.................................................... 59 83 103 130 156 107 101 111 123 141 International and regional.......................... * * * * 29 1 1 * 1 1 Grand total........................................ 3,533 3,435 3,757 4,215 4,691 6,373 7,437 7,809 8,575 10,628 1 Includes Bermuda through Dec. 1972. 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. o SEPTEMBER 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 ic r a Japan O A t s h i e a r Africa o A th ll er 1970—Mar.. 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June.. 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept.. 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec... 3,102 2.950 146 708 669 183 60 618 140 292 71 64 1971—Mar... 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June. . 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept... 2,939 3,019 135 672 765 178 60 597 133 319 85 75 3,159 3.118 128 705 761 174 60 652 141 327 86 85 Dec.1 3,138 3.118 128 705 767 174 60 653 136 325 86 84 1972—Mar... 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June. . 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept.. 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec.1. 3,540 3,370 163 715 833 184 60 659 156 406 87 109 3,688 3,493 187 758 868 187 64 703 134 399 82 111 1973—Mar.. 3,874 3,635 151 816 882 165 63 796 124 413 101 125 June.. 3,857 3,703 174 818 893 146 65 819 138 416 104 131 Sept.. 4,086 3,877 211 840 911 147 73 827 152 475 104 137 Dec.. . 3,984 3.950 285 785 966 145 81 820 141 471 112 144 1974—Mar.* 3,871 4,070 360 758 1,007 194 82 798 138 469 115 149 i Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. 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 money 3 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—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 11.81 5.63 5.33 6.64 9.86 6.50 May............. 8,22 7.48 13.31 11.36 10.72 9.50 12.90 6.63 8.36 7.00 9.00 6.50 June............ 8.66 8.36 12.61 11.23 10.58 9.50 13.59 5.63 8.79 7.00 8.98 6.50 July.............. 8.88 8.52 13.21 11.20 8.70 9.50 13.75 5.63 9.13 7.50 8.57 7.00 Aug.............. 8.76 12.80 11.24 11.11 9.50 9.05 7.50 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: N.B. Major changes in these two tables will be made in the Bulletin Note.—Components may not add to totals due to rounding. for October. For a given month, total assets may not equal total liabilities because 1 Cayman Islands included beginning Aug. 1973. some branches do not adjust the parent’s equity in the branch to reflect 2 Total assets and total liabilities payable in U.S. dollars amounted to unrealized paper profits and paper losses caused by changes in exchange $28,838 million and $28,954 million, respectively, on June 30, 1974. rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 August 31, 1974 Rate as of August 31, 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............................. 9.25 July. 1974 Norway............... 5.5 Mar. 1974 Denmark......................... 10.0 Jan. 1974 Sweden............... 7.0 Aug. 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 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, 4% Argentina—3 and 5 per cent for certain rural and industrial paper, de- per cent for advances against government bonds, and 5% 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—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 July.......... 147.99 5.4973 2.6378 102.424 16.858 20.984 39.174 12.759 238.96 .15522 .34372 Aug.......... 148.24 5.3909 2.5815 102.053 16.547 20.912 38.197 12.525 234.56 .15269 .33082 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—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 July.......... 41.471 8.0000 38.043 145.15 18.519 3.9886 149.73 1.7525 22.861 33.739 238.96 Aug.......... 42.780 8.0000 37.419 143.73 18.246 3.9277 146.83 1.7466 22.597 33.509 234.56 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 □ SEPTEMBER 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—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 28j565 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................. 49,840 6.478 11.652 31,710 231 169 312 882 1.781 927 97 77 103 Apr................. 6.478 11.652 231 169 '312 882 1.781 927 97 77 103 May................ 6.477 11.652 231 169 312 882 1.781 927 97 77 103 June............... *49,835 6.477 11.652 *31,705 231 169 312 882 1.781 927 97 77 July*............. 6.477 11,652 312 882 1.781 927 97 76 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi- Netherperiod Fed. anon lands Rep. of 197 0 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 197 1 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 197 2 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973—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 4.966 148 293 159 173 3.483 891 115 388 103 198 2.294 Nov.. 4.261 4.966 148 293 159 173 3.483 891 105 388 103 198 2.294 Dec.. 4.261 4.966 148 293 159 173 3.483 891 120 388 103 196 2.294 1974—Jan.. 4.262 4.966 148 293 159 173 3.483 891 113 389 103 195 2.294 Feb.. 4.262 4.966 148 293 159 173 3.483 891 120 r389 103 194 2.294 Mar., 4.262 4.966 149 293 159 173 3.483 891 123 r389 103 156 2.294 Apr.. 4.262 4.966 149 159 173 3.483 891 118 r389 103 155 2.294 May. 4.262 4.966 149 159 173 3.483 891 142 r389 103 2.294 June. 4.262 4.966 150 159 173 3.483 891 130 389 103 2.294 July* 4.262 4.966 150 158 173 3.483 130 389 105 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 ments2 1970............................ 54 902 119 666 498 200 2,732 92 116 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—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 99 151 886 148 472 271 Feb.................. 67 1,171 129 783 602 244 3,513 99 151 886 148 472 277 Mar................. 67 1,176 129 780 602 244 3,513 99 151 886 148 472 274 Apr................. 67 1,180 129 780 602 244 3,513 99 151 148 472 271 May................ 67 1,180 129 777 602 244 3,513 99 151 148 472 247 June............. 1,180 129 781 602 244 3,513 99 151 472 259 July* 129 244 3,513 99 151 472 259 1 Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank’s gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ countries. tries, and China Mainland. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1974 □ BUSINESS FINANCE A 79 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1972 1973 1974 Industry 1971 1972 1973 I II III IV I II III IV I Total (170 corps.): Sales.......................................... 334,957 371,946 442,254 88,349 93,853 89,550 100,194 102,932 109,967 108,370 120,985 126,893 Total revenue.......................... 339,134 376,604 448,795 89,452 95,271 90,803 101,078 104,139 111,526 109,984 123,108 128,829 Profits before taxes............... 35,771 41,164 53,833 9,715 10,467 8,978 12,003 12,695 14,009 12,411 14,742 16,847 Profits after taxes................... 19,146 21,753 28,772 5,212 5,674 4,936 5,931 6,801 7,491 6,762 7,750 7,739 Memo: PAT unadj.1........ 18,020 21,233 28,804 5,162 5,687 4,490 5,894 6,754 7,385 6,732 7,930 7,626 Dividends................................ 10,104 10,538 11,513 2,538 2,598 2,525 2,877 2,646 2,715 2,767 3,393 2,906 Nondurable goods industries (86 corps.):2 Sales.......................................... 160,973 176,329 210,118 42,254 43,395 43,865 46,815 47,519 50,223 53,168 59,207 68,864 Total revenue.......................... 163,448 178,915 213,904 42,930 44,273 44,689 47,023 48,259 51,191 54,098 60,357 70,183 Profits before taxes............... 19,900 21,799 30,200 5,043 4,998 5,278 6,479 6,487 7,129 7,610 8,988 11,880 Profits after taxes................... 10,490 11,154 15,538 2,673 2,682 2,852 2,946 3,411 3,667 4,018 4,463 5,056 10,085 10,859 15,421 2,625 2,625 2,574 3,035 3,348 3,597 3,957 4,517 4,957 Dividends................................ 5,664 5,780 6,103 1,447 1,430 1,427 1,476 1,487 1,462 1,527 1,633 1,625 Durable goods industries (84 corps.):3 173,985 195,618 232,136 46,095 50,458 45,685 53,379 55,413 59,744 55,202 61,778 58,029 Total revenue.......................... 175,686 197,690 234,891 46,522 50,999 46,115 54,055 55,880 60,335 55,886 62,751 58,646 Profits before taxes............... 15,871 19,365 23,633 4,673 5,469 3,697 5,524 6,208 6,880 4,801 5,754 4,967 Profits after taxes................... 8,656 10,599 13,234 2,539 2,992 2,083 2,984 3,390 3,824 2,744 3,287 2,683 7,935 10,374 13,383 2,537 3,062 1,916 2,859 3,406 3,788 2,775 3,413 2,669 Dividends................................ 4,440 4,758 5,410 1,091 1,168 1,097 1,401 1,159 1,253 1,240 1,760 1,281 Selected industries: Food and kindred prod. (28 corps.): Sales.......................................... 34,584 37,624 42,628 8,824 9,229 9,531 10,039 9,561 10,183 11,014 11,871 11,889 Total revenue......................... 35,090 38,091 43,198 8,941 9,371 9,665 10,115 9,711 10,348 11,201 11,938 12,151 Profits before taxes............... 3,372 3,573 3,957 794 880 940 960 890 962 1,031 1,067 1,046 Profits after taxes................... 1,714 1,845 2,063 414 454 486 490 470 499 r546 543 529 Memo: PAT unadj.1......... 1,644 1,805 2,074 408 452 492 452 453 501 r546 573 533 Dividends................................ 862 893 935 221 222 223 227 237 230 236 240 243 Chemical and allied prod. (22 corps.): Sales.......................................... 33,005 36,638 43,208 8,779 9,167 9,099 9,593 10,153 10,693 10,828 11,534 12,507 Total......................................... 33,388 37,053 43,784 8,868 9,265 9,196 9,723 10,264 10,849 10,968 11,704 12,664 Profits before taxes............... 4,123 4,853 6,266 1,172 1,184 1,216 1,280 1,487 1,606 1,599 1,572 1,856 Profits after taxes................... 2,290 2,672 3,504 652 667 683 669 838 886 901 883 1,044 2,167 2,671 3,469 649 626 684 712 834 884 871 880 1,031 Dividends................................ 1,332 1,395 1,496 337 341 340 378 346 359 374 417 383 Petroleum refining (15 corps.): Sales.......................................... 68,534 74,662 93,505 18,269 18,169 18,298 19,925 20,477 21,689 23,586 27,752 36,196 Total revenue......................... 69,903 76,133 95,722 18,695 18,756 18,837 19,845 20,892 22,258 23,988 28,584 37,006 Profits before taxes................ 10,835 11,461 17,494 2,684 2,433 2,628 3,717 3,514 3,884 4,371 5,724 8.296 Profits after taxes................... 5,624 5,562 8,550 1,384 1,270 1,398 1,509 1,760 1,899 2,230 2,662 3; 098 Memo: PAT unadj. i........ 5,519 5,325 8,505 1,356 1,273 1,119 1,578 1,737 1,888 2,192 2,688 3,011 Dividends................................ 2,952 2,992 3,147 763 742 741 746 777 748 789 832 864 Primary metals and prod. (23 corps.): Sales.......................................... 31,441 34,359 42,400 7,848 8,886 8,525 9,099 9,635 10,784 10,602 11,379 11,888 Total revenue.......................... 31,808 34,797 43,104 7,931 8,984 8,629 9,253 9,733 10,891 10,764 11,715 12,045 Profits before taxes............... 1,517 1,969 3,221 386 581 413 589 618 885 799 919 1,232 Profits after taxes................... 969 1,195 1,966 247 372 274 302 383 542 480 561 589 Memo: PAT unadj. i........ 561 1,109 2,039 260 465 128 256 397 538 496 608 607 Dividends................................ 739 653 789 162 161 162 168 200 178 184 227 221 Machinery (27 corps.) : 49,206 55,615 65,041 12,939 13,796 13,862 15,018 14,828 16,035 16,306 17,871 16,830 Total revenue.......................... 49,846 56,348 65,925 13,102 13,993 14,050 15,203 14,997 16,241 16,519 18,168 17,012 Profits before taxes............... 5,277 6,358 7,669 1,416 1,550 1,583 1,810 1,705 1,880 1,936 2,149 1,829 Profits after taxes................... 2,884 3,522 4,236 781 854 870 1,017 933 1,034 1,069 1,200 1,006 Memo: PAT unadj. *........ 2,560 3,388 4,208 774 848 865 902 931 1,020 1,070 1,188 996 Dividends................................ 1,450 1,497 1,606 373 374 375 375 389 401 407 410 441 Motor vehicles and equipment (9 corps.): Sales.......................................... 61,481 70,653 83,016 17,273 18,953 14,703 19,725 21,616 22,256 17,959 21,186 18,467 Total revenue......................... 61,804 71,139 83,671 17,353 19,105 14,735 19,946 21,710 22,415 18,142 21,362 18,597 Profits before taxes............... 5,648 6,955 7,429 2,017 2,290 628 2,019 2,716 2,704 729 1,280 636 Profits after taxes................... 2,948 3,626 3,992 1,037 1,186 343 1,060 1,405 1,446 431 709 369 Memo: PAT unadj. i........ 2,952 3,640 4,078 1,034 1,178 337 1,091 1,429 1,436 450 763 361 Dividends................................ 1,433 1,762 2,063 359 439 365 599 369 473 404 817 380 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

OPERATING RATIOS BY SIZE OF BANK AND BY RATIO OF TIME TO TOTAL DEPOSITS (Averages of individual ratios expressed as percentages) Size group—Total deposits Ratio of time deposits to (in thousands of dollars) total deposits (per cent) All Item groups 5,000 5,000- 10,000- 25,000- 50,000- 100,000- Over Under 60 and and 10,000 25,000 50,000 100,000 500,000 500,000 40 40-49 50-59 over under Summary ratios: Percentage of equity capital plus all reserves: 12.16 10.69 12.43 12.85 12.26 11.62 10.90 10.79 13.23 12.08 12.26 11.92 12.19 10.75 12.52 12.93 12.19 11.60 10.84 10.72 13.20 12.15 12.34 11.91 Percentage of net income: ?5.76 19.71 20.93 22.70 28.30 32.57 38.17 47.04 30.00 26.33 24.65 25.56 Sources and disposition of income: Percentage of total assets: Total operating expenses...................................................................................... 5.36 5.25 5.21 5.29 5.41 5.52 5.65 5.83 4.59 5.25 5.43 5.50 Salaries, wages, and fringe benefits............................................................... 1.35 1.67 1.39 1.29 1.27 1.31 1.33 1.30 1.72 1.51 1.40 1.19 Interest on time and savings deposits.......................................................... 2.59 2.12 2.50 2.67 2.74 2.73 2.59 2.34 1.22 2.07 2.53 3.07 Occupancy expense of bank premises, net.................................................. .19 .20 .17 .18 .20 .22 .23 .22 .23 .23 .21 .17 All other operating expenses........................................................................... 1.23 1.26 1.15 1.15 1.20 1.26 1.50 1.97 1.42 1.44 1.29 1.07 Total operating income........................................................................................ 6.66 6.67 6.63 6.65 6.65 6.62 6.70 6.86 6.40 6.63 6.71 6.68 Income after taxes and before securities gains (losses) 1............................... .97 1.00 1.05 1.02 .95 .86 .82 .78 1.27 1.00 .97 .91 Net income.............................................................................................................. .98 1.00 1.06 1.02 .95 .86 .82 .77 1.27 1.01 .98 .92 Percentage of total operating income: Interest, fees, and other loan income2.............................................................. 67.18 63.97 65.88 66.77 68.00 68.51 69.45 73.69 65.51 66.83 66.96 67.77 Securities—Interest and dividends:3 U.S. Treasury securities................................................................................... 11.64 17.34 14.25 11.82 9.62 8.28 7.24 4.94 13.28 10.98 11.39 11.74 Other U.S. Govt, securities (agencies and corporations)......................... 5.12 6.55 6.03 5.23 4.79 4.27 3.44 1.28 4.35 4.42 5.11 5.52 Obligations of States and political subdivisions......................................... 8.31 4.04 7.28 8.94 9.65 9.83 9.03 7.27 7.33 8.37 8.34 8.43 All other securities............................................................................................ .74 .65 .67 .72 .75 .99 .93 .58 .58 .50 .59 .97 (<Service charges on deposit accounts4)........................................................... (3.37) (3.47) (3.45) (3.62) (3.45) (3.24) (2.63) (2.15) (4.41) (4.24) (3.77) (2.59) (Trust department income4)............................................................................... (1.99) (1.72) (1.20) (1.02) (1.50) (2.25) (3.03) (3.86) (3.81) (2.77) (2.00) (1.38) All other operating income................................................................................. 7.01 7.45 5.89 6.52 7.19 8.12 9.91 12.24 8.95 8.90 7.61 5.57 Total operating income........................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages................................................................................................. 17.57 22.05 18.43 16.77 16.35 16.91 16.80 15.91 23.45 19.70 18.02 15.44 Officer and. employee benefits............................................................................. 2.67 2.58 2.50 2.60 2.75 2.88 2.97 3.03 3.32 2.92 2.71 2.44 Interest on: Time and savings deposits.............................................................................. 39.19 31.71 38.01 40.48 41.57 41.46 38.97 34.38 19.39 31.70 38.05 46.22 Borrowed money................................................................................................ 1.39 .28 .29 .50 1.07 2.12 5.71 12.63 2.52 2.38 1.57 .70 (Capital notes and debentures4)................................................................... (1.17) (6.47) (1.21) (1.22) (1.22) (1.12) (1.12) (1.09) (.95) (1.19) (1.18) (1.18) Occupancy expense of bank premises, net...................................................... 3.00 2.87 2.66 2.87 3.13 3.48 3.54 3.38 3.62 3.53 3.12 2.62 Provision for loan losses...................................................................................... 2.06 2.32 2.20 2.04 1.92 1.84 1.90 2.41 2.14 2.39 2.29 1.77 All other operating expenses............................................................................... 14.44 17.24 14.16 14.13 14.60 14.64 14.45 13.13 16.75 16.26 14.90 13.06 Total operating expenses1....................................................................... 80.32 79.05 78.25 79.39 81.39 83.33 84.34 84.87 71.19 78.88 80.66 82.25 Income before taxes and securities gains (losses)........................................... 19.68 20.95 21.75 20.61 18.61 16.67 15.66 15.13 28.81 21.12 19.34 17.75 Income after taxes and before securities gains (losses)................................. 14.98 15.58 16.23 15.57 14.45 13.30 12.49 11.56 20.30 15.68 14.83 13.88 Net securities gains or losses (—), after taxes................................................ —. 14 .03 .06 - .06 -.10 -.11 -.11 -.03 .03 All other income (net).......................................................................................... .04 .04 .04 .05 .07 .05 .04 .10 .05 .06 .01 Net income1........................................................................................................... 15.02 15.48 16.30 15.68 14.45 13.31 12.44 11.49 20.29 15.70 14.89 13.92 A 80 MEMBER BANKS, 1973 □ SEPTEMBER 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends :3 U.S. Treasury securities...................................................................... 6.11 6.07 6.19 6.20 6.06 6.03 5.87 5.68 6.11 6.07 6.10 6.14 Other U.S. Govt, securities (agencies and corporations)............. 5.15 4.33 4.67 5.15 5.46 5.71 5.72 5.72 4.21 4.92 5.31 5.28 Obligations of States and political subdivisions............................. 4.24 3.76 4.14 4.28 4.40 4.38 4.28 4.30 4.07 4.19 4.23 4.29 All other securities............................................................................... 6.23 4.67 6.43 6.36 6.39 6.38 6.46 6.41 5.61 6.25 6.18 6.36 On loans:2 Interest, fees, and other loan income............................................... 9.13 9.92 9.42 9.10 8.74 8.67 8.79 9.02 10.19 9.49 9.18 8.77 Net loan losses (—) or recoveries5................................................... -.20 -.13 -.19 -.21 -.20 -.21 -.21 -.25 -.09 -.29 -.24 -.17 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.................................................................. 12.25 17.90 14.87 12.40 10.15 8.96 8.07 5.82 13.26 11.48 12.06 12.47 Other U.S. Govt, securities (agencies and corporations)......... 5.47 7.21 6.61 5.63 4.90 4.30 3.53 1.44 4.50 4.81 5.48 5.87 Obligations of States and political subdivisions......................... 12.45 6.04 10.83 13.41 14.32 14.64 13.89 11.44 10.71 12.40 12.63 12.65 All other securities........................................................................... .73 .64 .68 .71 .74 .88 .86 .61 .45 .48 .61 .95 Gross loans2.......................................................................................... 54.74 51.63 53.59 54.37 55.64 56.08 56.78 60.00 50.81 53.23 54.35 56.26 Cash assets............................................................................................. 11.90 13.23 11.58 11.25 11.39 12.12 13.43 15.57 17.99 14.79 12.26 9.53 Real estate assets.................................................................................. 1.61 1.39 1.40 1.60 1.74 1.86 1.81 1.74 1.48 1.82 1.69 1.50 Percentage of gross loans:2 Commercial and industrial loans...................................................... 18.84 11.21 13.90 17.17 21.72 25.23 28.80 35.33 21.31 23.12 20.76 15.54 Loans to farmers................................................................................... 12.54 25.01 21.38 12.71 6.38 2.79 2.24 1.18 17.13 13.21 13.62 10.72 Real estate loans................................................................................... 28.04 19.56 25.18 29.25 31.64 32.43 29.05 21.92 12.75 19.24 24.50 36.37 Loans to individuals for personal expenditures............................. 27.46 24.11 24.94 28.55 30.55 29.56 25.78 19.36 27.60 28.14 28.11 26.73 All other loans2.................................................................................... 13.12 20.11 14.60 12.32 9.71 9.99 14.13 22.21 21.21 16.29 13.01 10.64 Other ratios (per cent): Interest and fees on loans to loans.................................................. 8.13 8.08 8.04 8.15 8.09 8.09 8.21 8.48 8.26 8.30 8.26 7.95 Interest on time and savings deposits to time and savings deposits 5.14 4.98 4.97 5.07 5.22 5.39 5.45 5.92 4.98 5.23 5.19 5.10 Income taxes to net income plus income taxes.................................. 17.90 20.62 21.04 19.29 16.19 12.27 11.52 14.38 25.49 18.24 18.43 16.04 Time and savings deposits to total deposits....................................... 57.07 49.03 56.30 58.83 59.41 58.63 55.68 50.14 28.23 45.90 55.29 67.48 Total capital accounts and reserves to total assets7......................... 8.46 10.39 8.78 8.18 8.07 7.91 7.97 7.87 10.03 8.86 8.40 8.08 Number of banks 8......................................................................................... 5,550 566 1,049 1,914 947 519 407 148 451 883 1,726 2,490 For notes see p. A-85. SEPTEMBER 1974 □ MEMBER BANKS, 1973 A 81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY RATIO OF TIME TO TOTAL DEPOSITS. BY SIZE OF BANK (Averages of individual ratios expressed as percentages) Banks with ratios of time Banks with ratios of time Banks with ratios of time Banks with ratios of time to total deposits of to total deposits of to total deposits of to total deposits of under 40 percent 40-49 per cent 50-59 per cent 60 per cent and over Item All groups Size group—Total deposits (in thousands of dollars) 5,000 5,000- Over 5,000 5,000- Over 5,000 5,GOO- Over 5,000 5,000- Over and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 under under under under Summary ratios: Percentage of equity capital plus all reserves: 12.16 13.84 13.72 11.52 9.52 12.88 11.79 10.80 12.94 11.68 9.75 12.33 11.73 12.19 13.88 13.71 11.38 9.48 12.99 11.82 10.93 13.03 11.71 9.75 12.41 11.59 Percentage of net income: 25.76 27.11 26.06 41.51 18.42 21.94 34.17 18.74 20.19 32.16 17.43 22.70 31.63 Sources and disposition of income: Pe T I T N r n c o o e c e O I A S t t t n o n a a a l c t m i t l l l l e n c a a o o o r u e c g r e i t p p p o e e h s a e e a m s t e f o r r n , t r a a o e e f c w t t n r o . y t i i . o n n a . p t . t e a g t g . g e i . a x x m . e r . l e p i s . e a . n e , x e . a s t . i c n p . a s n a . a o . s s n e n . g n e e . m n d . d d t . s e . s o e . f e x : s . b r f . . s a p . . i e . . . b n v . . . e f . . . a g i . . . n o . . n . n e . . . s r . . . g k . . . e e . . . b s . . . s . . . s e p . . . . d . . . . e n . . . . r e . . . c . e . . . . e . . p . . u m . . . . f . . . . r o i . . . . i . i . t . . s . . . . t s s . . . . i i e . . . . . e . . t . . . s . . . . . s s . . . . . , . . . . . . . . . . . . g . . . . . n . . . . . . . . a . . . . . e . . . . . . i . . . . . . . . . n . . t . . . . . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . ( . . . . . . . . . l . . . . . . . . o . . . . . . . . . . . . . . . . . . s . . . . . . . . . s . . . . . . . . . . . . . . e . . . . . . . . . . . . . s . . . . . . . . . . . . . . ) . . . . . . . . 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6 5 1 1 . . . . . . . . 5 2 6 3 3 1 9 9 3 9 5 7 6 8 9 6 4 6 2 1 1 1 . . . . . . . . 3 5 4 0 2 5 2 7 1 2 4 4 9 9 2 0 4 6 1 1 1 1 1 . . . . . . . . 3 4 2 2 3 6 2 3 1 7 9 9 0 6 2 0 6 5 1 1 1 . . . . . . . . 5 1 8 5 4 2 9 9 5 2 2 8 4 9 6 4 6 5 1 1 1 . . . . . . . . 7 5 7 9 5 8 2 8 2 5 3 8 3 5 6 6 2 5 6 1 1 1 1 . . . . . . . . 6 1 3 5 0 0 2 1 1 1 1 1 5 9 2 0 2 6 5 1 1 . . . . . . . . 1 6 9 3 5 9 4 2 3 3 2 2 8 6 4 2 2 5 6 1 1 . . . . . . . . 7 4 4 2 2 9 9 6 8 7 9 2 7 0 6 0 2 6 5 1 1 1 1 . . . . . . . . 5 6 0 3 2 3 0 1 3 2 9 2 9 9 2 4 2 6 5 1 1 . . . . . . . . 7 5 5 2 3 4 9 9 7 2 3 6 2 6 0 0 6 2 5 1 1 . . . . . . . . 8 8 7 8 8 4 2 1 3 9 3 4 7 2 0 6 3 6 5 1 1 . . . . . . . . 4 6 0 0 1 1 9 9 1 3 7 5 7 7 6 6 3 6 5 1 1 . . . . . . . . 1 1 6 5 8 1 1 8 1 1 5 8 7 6 9 6 Pe I r n c t e e n r t e a s g t, e f o ee f s t , o a ta n l d o o p t e h r e a r ti n lo g a n in i c n o c m o e m : e2............................................. 67.18 62.26 64.32 71.61 65.43 65.63 68.75 65.00 65.88 68.90 66.63 67.44 68.51 Se O U cu . t S r h i * e ti r T e s U r — e . a S I s . n u t G r e y r o e s v s e t t , c a u s n e ri c d t u i e d r s i i t . v i .. e i . d s .. e .. ( n . a .. d g .. e s .. : n .. 3 c .. i . e .. s .. . a .. n ... d .. . c .. o ... r . p ... o .. r .. a .. t . i .. o .. n .. s .. ) .. . . . . . . . . . . . . . . . . 1 5 1 . . 1 6 2 4 1 5 9 . .3 8 3 2 1 4 3 . . 8 3 8 5 6 1 . . 4 62 6 1 6 7 . . 0 4 5 6 1 5 2 . . 0 1 3 8 7 3 . . 6 17 2 1 6 8 . . 0 4 5 2 1 5 2 . . 9 3 6 9 3 8. . 3 7 7 2 1 7 5 . . 9 9 7 8 1 5 2 . . 4 9 8 2 9 5 . . 0 0 7 8 Obligations of States and political subdivisions........................ 8.31 4.38 8.64 7.81 3.91 8.73 9.18 4.32 8.29 9.35 3.83 8.23 9.70 All other securities........................................................................... .74 .79 .48 .56 .50 .46 .57 .47 .53 .69 .80 .92 1.07 (iService charges on deposit accounts4)........................................... (3.37) (3.98) (5.19) (3.25) (4.17) (4.79) (3.57) (3.09) (4.06) (3.53) (2.55) (2.54) (2.66 (Trust department income4 )............................................. (1.99) (2.96) (2.45) (4.52) (1.36) (3.19) (.87) (.89) (2.37) (.84) (.83) (1.62 All other operating income................................................................. 7.01 7.42 8.33 11.94 6.65 7.97 10.71 5.74 6.95 8.97 4.79 5.01 6.57 Total operating income.......................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages................................................................................ 17.57 28.55 22.82 19.15 23.73 19.90 18.30 20.94 18.06 17.28 19.09 15.21 15.05 Officer and employee benefits............................................................. 2.67 3.15 3.35 3.44 2.56 2.83 3.12 2.51 2.58 2.94 2.33 2.35 2.61 Int T B e i r o m e r s r e t o w o an n e d d : s m av o i n n e g y s .. d .. e .. p .. o ... s .. i . t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 1 . . 1 3 9 9 12. . 5 1 3 6 20. . 6 6 4 5 2 9 4. . 3 1 1 0 29. . 7 31 9 31. . 4 42 6 3 5 2 . . 4 5 6 6 36. . 2 3 3 6 38. . 0 5 9 2 3 3 8 . .4 2 2 8 42. . 6 11 4 46. . 2 3 4 2 46 1 . . 9 4 1 1 P O r c o ( c v C u i p s a i a p o n i n t c a y f l o n e r x o l p t o e e a s n n s a e n l o d o s f d s b e eb s a . e n .. n k .. t . . u p .. r r .. e e .. s m .. 4 . i . ) . s . . e . . . . s . . . , . . . . . . n . . . . e . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( 2 3 1 . . . 0 0 1 6 0 7) 2 3 ( . . . 0 2 7 3 4 5) ( 2 3 1 . . . 0 6 1 5 0 0) 4 2 ( . . . 2 3 9 1 0 6) ( 2 3 1 . . . 7 5 3 3 7 9) ( 3 2 1 . . . 4 5 3 1 4 8) ( 3 2 1 . . . 1 6 1 1 6 2) ( 2 2 1 . . . 9 6 7 1 6 0) ( 2 2 1 . . . 8 2 2 9 9 5) U 2 3 . . . 2 1 4 1 5 9 ) ( 2 1 1 . . . 5 9 0 7 0 9) ( 2 1 1 . . . 4 8 1 1 4 8) ( 2 1 1 . . . 9 1 6 5 8 3 ] All other operating expenses.............................................................. 14.44 16.96 16.99 16.03 19.04 16.10 15.71 14.77 14.71 15.19 14.72 12.69 13.30 Total operating expenses1...................................................... 80.32 66.62 70.10 78.54 81.73 76.66 80.92 80.38 79.14 82.81 83.36 81.06 83.86 Income before taxes and securities gains (losses)........................... 19.68 33.38 29.90 21.46 18.27 23.34 19.08 19.62 20.86 17.19 16.64 18.94 16.14 Income after taxes and before securities gains (losses)................ 14.98 24.02 20.91 14.91 13.73 17.16 14.33 14.84 15.75 13.56 12.49 14.59 13.08 Net securities gains or losses (—), after taxes............................... -.07 -.11 -.17 -.63 .10 -.03 .01 .01 -.03 .03 .07 -.05 All other income (net)......................................................................... .04 .18 .08 .06 .03 .04 .08 .07 .07 .01 .03 - .01 Net income1........................................................................................... 15.02 24.13 20.88 14.80 13.13 17.30 14.38 14.85 15.83 13.60 12.53 14.69 13.02 A 82 MEMBER BANKS, 1973 o SEPTEMBER 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends :3 U.S. Treasury securities...................................................................... 6.11 5.99 6.23 5.98 6.23 6.21 5.85 6.05 6.19 5.99 6.31 6.19 6.03 Other U.S. Govt, securities (agencies and corporations)............. 5.15 4.27 4.21 4.13 4.58 4.71 5.28 4.02 5.12 5.86 4.68 5.10 5.69 Obligations of States and political subdivisions............................. 4.24 3.91 4.02 4.34 3.48 4.23 4.34 4.01 4.19 4.33 3.76 4.29 4.40 All other securities............................................................................... 6.23 4.08 5.92 6.63 4.04 6.55 6.48 5.29 6.24 6.31 5.06 6.50 6.41 On loans:2 Interest, fees, and other loan income............................................... 9.13 11.06 10.07 9.51 10.60 9.61 9.04 9.91 9.30 8.86 9.34 8.89 8.48 Net loan losses (—) or recoveries5................................................... -.20 .09 -.12 -.24 -.43 -.31 -.22 -.20 -.23 -.25 -.12 -.17 -.17 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.................................................................. 12.25 19.19 13.23 6.78 17.94 12.54 8.30 19.25 13.04 9.03 16.84 13.66 9.75 Other U.S. Govt, securities (agencies and corporations)......... 5.47 5.89 5.10 1.67 6.86 5.54 3.29 6.77 6.42 3.87 8.90 5.96 5.11 Obligations of States and political subdivisions......................... 12.45 6.22 12.72 11.40 6.06 12.82 13.64 6.49 12.50 14.24 5.82 12.37 14.50 All other securities........................................................................... .73 .41 .45 .52 .47 .43 .56 .67 .57 .64 .84 .92 1.01 Gross loans2.......................................................................................... 54.74 47.47 49.50 57.25 51.85 52.08 55.09 52.69 53.44 55.98 55.81 55.90 56.89 Cash assets............................................................................................. 11.90 19.29 16.94 18.77 14.71 14.23 15.52 12.18 11.82 12.88 9.81 9.27 9.88 Real estate assets.................................................................................. 1.61 .97 1.63 1.71 1.58 1.75 1.99 1.42 1.58 1.91 1.52 1.41 1.62 Percentage of gross loans:2 Commercial and industrial loans...................................................... 18.84 10.19 20.80 34.64 13.45 19.86 30.02 11.97 17.45 27.38 10.62 13.10 20.30 Loans to farmers.................................................................................. 12.54 30.95 16.41 3.43 25.86 17.07 4.73 28.31 17.94 4.25 19.26 13.85 4.15 Real estate loans................................................................................... 28.04 9.34 13.95 13.99 15.10 18.41 21.48 17.97 23.42 27.50 30.62 35.90 38.29 Loans to individuals for personal expenditures............................. 27.46 24.74 30.30 25.06 24.10 29.06 28.08 24.23 27.85 29.38 24.77 25.84 28.50 All other loans2.................................................................................... 13.12 24.78 18.54 22.88 21.49 15.60 15.69 17.52 13.34 11.49 14.73 11.31 8.76 Other ratios (per cent): Interest and fees on loans to loans................................................ 8.13 8.28 8.22 8.33 8.30 8.27 8.32 8.14 8.26 8.27 7.98 7.94 7.96 Interest on time and savings deposits to time and savings deposits6. 5.14 4.46 4.91 5.62 4.91 5.02 5.58 5.02 5.09 5.37 4.91 5.03 5.24 Income taxes to net income plus income taxes.................................. 17.90 25.88 26.07 23.85 14.51 21.05 15.70 22.34 20.09 15.24 20.03 18.43 11.56 Time and savings deposits to total deposits........................................ 57.07 19.40 30.18 33.88 45.97 45.88 45.91 55.08 55.53 55.02 66.69 67.81 67.13 Total capital accounts and reserves to total assets7......................... 8.46 11.65 9.86 8.59 11.12 8.83 8.27 10.24 8.30 8.10 9.84 8.07 7.74 Number of banks8......................................................................................... 5,550 118 226 107 97 441 345 155 909 662 187 1,395 908 For notes see p. A-85. SEPTEMBER 1974 □ MEMBER BANKS, 1973 A 83 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY FEDERAL RESERVE DISTRICT (Averages of individual ratios expressed as percentages) All New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Item districts Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............... 12.16 10.05 9.55 11.78 11.91 12.41 13.01 11.71 12.68 11.77 13.04 13.56 10.24 12.19 9.95 9.52 11.84 12.01 12.47 13.15 11.56 12.78 11.66 13.18 13.61 10.51 Percentage of net income: 25.76 36.88 32.79 29.05 21 Al 25.93 26.04 25.12 22.89 24.72 23.71 22.08 24.08 Sources and disposition of income: Percentage of total assets: To S ta a l l a o ri p e e s r , a w tin ag g e e s, x p a e n n d s e fr s i . n .. g .. e .. .. b .. e .. n .. e .. f .. i . t .. s .. . . . . .. .. . . .. .. . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . .. . 5 1 . .3 3 5 6 5 1 . . 7 84 6 5 1. . 5 7 1 2 5 1. . 1 2 1 0 5 1 . . 1 14 4 5 1 . . 3 3 6 2 5 1. . 4 5 1 5 5 1 . . 3 2 5 4 4 1 . . 9 2 3 0 5 1 . . 5 28 2 5 1 . . 2 4 4 4 5 1 . . 2 4 6 4 6 1 . . 2 8 9 2 Interest on time and savings deposits.......................................... 2.59 1.97 2.64 2.89 2.68 2.60 2.50 2.85 2.48 3.02 2.40 2.23 2.60 Occupancy expense of bank premises, net.................................. .19 .32 .28 .16 .16 .19 .20 .18 .17 .16 .17 .22 .30 All other operating expenses.......................................................... 1.23 1.63 1.29 1.04 1.16 1.25 1.44 1.08 1.08 1.06 1.23 1.37 1.57 Total operating income....................................................................... 6.66 6.98 6.70 6.46 6.49 6.70 6.87 6.53 6.28 6.71 6.71 6.73 7.33 Income after taxes and before securities gains (losses) 1............... .97 .89 .80 1.00 1.02 1.01 1.01 .89 1.01 .87 1.06 1.11 .75 Net income............................................................................................. .98 .89 .79 1.00 1.04 1.02 1.03 .89 1.02 .86 1.08 1.11 .77 Percentage of total operating income: Interest, fees, and other loan income2............................................. 67.18 72.89 68.44 68.71 67.96 70.03 65.77 65.78 63.05 65.65 67.93 67.65 69.28 Securities—Interest and dividends:3 U.S. Treasury securities................................................................... 11.64 7.82 10.05 11.34 14.00 9.72 8.96 13.31 15.14 13.09 12.30 9.42 8.18 Other U.S. Govt, securities (agencies and corporations)........ 5.12 2.03 3.40 4.52 3.10 5.21 5.81 5.42 7.43 7.00 4.15 6.02 4.52 Obligations of States and political subdivisions........................ 8.31 7.11 9.19 8.79 8.99 8.71 9.77 7.90 8.30 7.37 7.96 8.26 6.26 All other securities........................................................................... .74 .71 1.20 2.23 .71 .37 .64 1.19 .60 .36 .31 .57 .41 (Service charges on deposit accounts4).......................................... (3.37) (4.61) (3.33) (1.74) (2.35) (2.30) (4.42) (2.67) (2.51) (3.02) (3.99) (4.58) (5.67) (Trust department income4)............................................................. (1.99) (3.52) (2.53) (1.70) (2.04) (1.83) (2.10) (1.86) (1.72) (1.75) (1.76) (1.56) (2.49) All other operating income................................................................. 7.01 9.44 7.72 4.41 5.24 5.96 9.05 6.40 5.48 6.53 7.35 8.08 11.35 Total operating income.......................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages................................................................................ 17.57 22.29 19.21 14.75 15.16 17.01 17.81 16.50 16.65 16.48 18.74 19.00 21.46 Officer and employee benefits............................................................ 2.67 3.95 3.31 2.51 2.44 2.64 2.75 2.56 2.47 2.60 2.63 2.39 3.23 Interest on : Time and savings deposits.............................................................. 39.19 28.21 39.76 44.96 41.44 39.09 36.79 43.77 39.61 45.38 36.05 33.30 35.84 Borrowed money............................................................................... 1.39 2.14 2.16 .78 1.30 1.27 1.65 1.38 1.11 .86 1.38 1.27 2.60 (Capital notes and debentures*)................................................... (1.17) (.79) (1.02) (1.29) (1.22) (1.17) (.99) (1.27) (1.22) (1.14) (1.36) (1.23) (1.01) Occupancy expense of bank premises, net...................................... 3.00 4.65 4.16 2.69 2.53 3.02 3.06 2.93 2.80 2.45 2.55 3.30 4.07 Provision for loan losses..................................................................... 2.06 2.33 2.06 1.26 1.80 2.16 2.32 1.75 1.68 1.65 2.38 2.74 2.70 All other operating expenses.............................................................. 14.44 18.42 14.34 13.55 14.54 14.59 16.32 12.94 13.93 12.90 14.15 15.76 15.51 Total operating expenses1...................................................... 80.32 81.99 85.00 80.50 79.21 79.78 80.70 81.83 78.25 82.32 77.88 77.76 85.41 Income before taxes and securities gains (losses)........................... 19.68 18.01 15.00 19.50 20.79 20.22 19.30 18.17 21.75 17.68 22.12 22.24 14.59 Income after taxes and before securities gains (losses)................ 14.98 12.97 12.24 15.63 16.00 15.57 15.06 13.97 16.45 13.10 16.27 16.89 10.64 Net securities gains or losses (—), after taxes................................ - . 11 -.10 .09 .10 -.09 .03 -.08 .14 -.10 .03 -.01 .16 All other income (net)......................................................................... .04 .05 .06 .07 .04 .14 -.02 .01 .05 .08 .12 Net income1........................................................................................... 15.02 12.91 12.20 15.72 16.17 15.52 15.23 13.87 16.59 13.01 16.35 16.96 ' 10.92 A 84 MEMBER BANKS, 1973 □ SEPTEMBER 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends :3 U.S. Treasury securities.................................................................... 6.11 6.05 6.13 6.23 6.09 6.20 5.99 6.02 6.23 6.05 6.09 6.32 6.00 Other U.S. Govt, securities (agencies and corporations)........... 5.15 3.64 5.48 5.18 4.71 5.46 5.80 5.32 5.18 5.21 4.72 5.18 5.51 Obligations of States and political subdivisions........................... 4.24 4.43 4.19 4.21 4.26 4.12 4.36 4.19 4.25 4.39 4.18 4.18 4.21 All other securities............................................................................. 6.23 6.66 7.83 6.67 6.72 6.23 6.34 6.08 5.86 5.31 5.87 5.81 8.17 On loans:2 Interest, fees, and other loan income............................................. 9.13 9.12 8.91 8.43 8.70 8.71 9.53 8.77 8.67 8.78 9.51 10.26 9.82 Net loan losses (—) or recoveries5................................................. -.20 -.23 -.20 -.12 -.16 -.16 -.25 -.18 -.17 -.15 -.23 -.28 -.28 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities................................................................ 12.25 8.92 10.66 11.64 14.66 10.16 9.83 13.70 14.88 14.30 13.18 9.83 9.49 Other U.S. Govt, securities (agencies and corporations)----- 5.47 2.11 3.52 4.65 3.22 5.50 6.21 5.70 7.84 7.75 4.41 6.53 5.35 Obligations of States and political subdivisions...................... 12.45 11.01 13.71 12.86 13.26 13.22 14.48 11.83 12.11 11.10 12.10 12.43 10.32 All other securities......................................................................... .73 .74 1.06 2.15 .70 .38 .66 1.15 .53 .39 .34 .53 .42 Gross loans2........................................................................................ 54.74 61.52 57.02 57.93 55.76 57.21 52.70 54.46 50.12 54.57 54.71 52.54 57.70 Cash assets........................................................................................... 11.90 12.84 11.22 8.69 10.25 10.80 13.02 10.78 12.31 9.77 13.17 15.52 12.67 Real estate assets................................................................................ 1.61 2.07 1.61 1.58 1.48 1.91 2.05 1.47 1.51 1.35 1.32 1.74 2.17 Percentage of gross loans:2 Commercial and industrial loans.................................................... 18.84 26.28 20.93 14.57 13.96 15.90 23.04 17.31 16.39 17.37 18.05 23.79 24.16 Loans to farmers................................................................................ 12.54 1.30 2.70 3.46 5.13 3.20 2.89 12.57 10.98 22.81 30.69 15.51 5.41 Real estate loans................................................................................. 28.04 29.48 35.11 45.53 37.25 33.62 26.13 32.91 30.62 29.24 15.01 14.50 28.80 Loans to individuals for personal expenditures........................... 27.46 31.92 26.71 24.82 31.84 35.31 34.54 24.32 28.36 21.55 22.58 28.50 28.18 All other loans2.................................................................................. 13.12 11.02 14.55 11.62 11.82 11.97 13.40 12.89 13.65 9.03 13.67 17.70 13.45 Other ratios (per cent): Interest and fees on loans to loans.................................................... 8.13 8.30 7.91 7.55 7.79 8.17 8.70 7.80 7.88 7.97 8.25 8.65 8.75 Interest on time and savings deposits to time and savings deposits 6 5.14 5.13 5.14 4.82 4.82 5.05 5.38 5.13 5.08 5.24 5.14 5.31 5.21 Income taxes to net income plus income taxes................................ 17.90 21.09 10.75 14.79 17.88 18.04 16.55 17.44 20.50 20.16 20.90 16.45 16.89 Time and savings deposits to total deposits..................................... 57.07 44.72 59.66 67.64 63.01 58.81 53.93 62.25 54.51 64.50 52.13 47.08 57.35 Total capital accounts and reserves to total assets 7....................... 8.46 9.25 9.22 8.82 8.78 8.82 8.37 7.94 8.43 7.80 8.51 8.66 7.89 Number of banks 8....................................................................................... 5,550 210 318 279 451 360 536 919 428 491 804 620 134 1 Excludes minority interest in operating income, if any. 8 The ratios for 185 member banks in operation at the end studying the financial results of operations of individual banks, 2 Loans include Federal funds sold and securities purchased of 1973 were excluded from the compilations because of un­ while ratios based on aggregates show combined results for under agreements to resell. availability of data covering the complete year’s operations, the banking system as a whole and, broadly speaking, are the 3 Excludes trading-account securities. certain accounting adjustments, lack of comparability, and more significant for purposes of general analyses of credit 4 Averages exclude banks not reporting these items, or re­ so forth. and monetary problems. porting negligible amounts. Figures of revenue, expenses, and so forth, used in the 5 Net losses for banks on a valuation-reserve basis are the Note.—These ratios, being arithmetic averages of the calculations were taken from the annual income and dividends excess of actual losses over actual recoveries credited and operating ratios of individual member banks, differ in many reports for 1973. Balance sheet figures used in the compila­ charged to valuation reserves; net recoveries are the reverse. cases from corresponding ratios computed from aggregate tions were obtained by averaging the amounts shown in each For all other banks, net losses are the amount deducted from dollar amounts shown in the June 1974 issue of the Bulletin. bank’s official condition reports submitted for Dec. 31, 1972, operating income as an operating expense. Such differences result from the fact that each bank’s figures June 30, 1973, and Dec. 31, 1973. Savings deposits are in­ 6 Banks reporting no interest paid on time deposits were have an equal weight in calculation of the averages, whereas cluded in the time deposits figures used in these tables. excluded in computing this average. the figures of the many small and medium-sized banks have For details concerning comparability of income and related 7 Includes capital notes and debentures and all valuation little influence on the aggregate dollar amounts. Averages of data for 1969 and earlier years, see Bulletin for July 1970, reserves. individual ratios are useful primarily to those interested in pp. 564-72. SEPTEMBER 1974 □ MEMBER BANKS, 1973 A 85 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. M itchell, Vice Chairman John E. Sheehan J effrey M. Bucher Robert C. Holland H enry C. Wallich OFFICE OF MANAGING DIRECTOR FOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR OPERATIONS RESEARCH AND ECONOMIC POLICY Thomas J. O ’C onnell, Counsel to the D aniel M. D oyle, Managing Director Chairman J. C harles P artee, Managing Director John M. D enkler, Deputy Managing R obert Solom on, Adviser to the Board Stephen H. A xilrod, Adviser to the Board Director Joseph R. C oyne, Assistant to the Board Sam uel B. C hase, Jr., Adviser to the Board G ordon B. G rim w ood, Assistant Director John S. Rippey, Assistant to the Board A rth u r L. B roida, Assistant to the Board and Program Director for John J. H art, Special Assistant to the Board M urray A ltm ann, Special Assistant to the Contingency Planning Frank O’B rien, Jr., Special Assistant to the Board W illiam W. L ayton, Director of Equal Board Employment D onald J. W inn, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS B renton C. L eavitt, Program Director for Banking Structure Lyle E. G ram ley, Director P eter E. B arn a, Program Director for LEGAL DIVISION James L. Pierce, Associate Director R o D A B b n a i e r n a e r k l c t y t s H o S i r s . o l f P d o i l r n o g B t k a C i n n o k m , H p A a o s n l s d y o i c n A i g a n t C a e l o y P m s r i o p s g a r n a y m J B A o a n h C l d n d o r u w e N n w i s n i e c l F o B . l . l O , T e D u h e m t p tl u a e n ty , n , G A s A e s n c i e s ti r t n a a g n l t C G G o e u e n n n e s e r e r a l a l l Counsel M K P S e t e u a t n e n r n r r l a e e y M t y h . S J B . . K . W S e W i i r g e , e r il n A l l , i i d c a A v k m i d , s s v e A , i r s d A e v r d i s v e is r e r C harles R. M cN eill, Assistant to the James B. E ckert, Associate Adviser DIVISION OF FEDERAL RESERVE BANK General Counsel Edw ard C. E ttin, Associate Adviser OPERATIONS G riffith L. G arw ood, Adviser R obert J. L aw rence, Associate Adviser E leanor J. S tockw ell, Associate Adviser R onald G. B urke, Director Joseph S. Zeisel, Associate Adviser James R. K udlinski, Associate Director OFFICE OF SAVER AND James L. K ichline, Assistant Adviser E. M aurice M cW hirter, Associate CONSUMER AFFAIRS Stephen P. T aylor, Assistant Adviser Director Thom as D. Thom son, Assistant Adviser W alter A. A lthausen, Assistant Director Frederic Solom on, Assistant to the Louis W einer, Assistant Adviser H arry A. G uinter, Assistant Director Board and Director H elm ut F. W endel, Assistant Adviser P. D. Ring, Assistant Director Janet O. H art, Deputy Director Levon H. G arabedian, Assistant Director W illiam H. W allace, Assistant Director A 86 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 C harles L. H am pton, Director Theodore E. A llison, Secretary R alph C. B ryant, Director H enry W . M eetze, Associate Director N orm and R. V. B ernard, Assistant John E. R eynolds, Associate Director G lenn L. Cummins, Assistant Director Secretary P aul W onnacott, Associate Director W arren N. M inam i, Assistant Director E lizabeth L. C arm ichael, Assistant R obert F. G em m ill, Adviser R obert J. Zem el, Assistant Director Secretary Reed J. Irvine, Adviser B ernard N orw ood, Adviser DIVISION OF PERSONNEL Sam uel Pizer, Adviser DIVISION OF BANKING SUPERVISION G eorge B. H enry, Associate Adviser AND REGULATION K eith D. Engstrom , Director H elen B. Junz, Associate Adviser C harles W . W ood, Assistant Director f Norm an S. Fieleke, Assistant Adviser B renton C. L eavitt, Director OFFICE OF THE CONTROLLER Frederick R. D ahl, Assistant Director Jack M. E gertson, Assistant Director John K akalec, Controller John N. Lyon, Assistant Director tOn loan from the Federal Reserve Bank of Boston. John T. M cC lintock, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Thom as A. Sidm an, Assistant Director W illiam W. W iles, Assistant Director W alter W . K reim ann, Director D onald E. A nderson, Assistant Director John D. Sm ith, Assistant Director A 87 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Robert P. Black Robert C. Holland John E. Sheehan Jeffrey M. Bucher Monroe Kimbrel Henry C. Wallich George H. Clay George W. Mitchell Willis J. Winn A rthur L. B roida, Secretary R obert Solom on, Economist M urray A ltm ann, Deputy Secretary (International Finance) N orm and R. V. B ernard, Assistant H arry B randt, Associate Economist Secretary R alph C. B ryant, Associate Economist Thomas J. O ’C onnell, General Counsel R ichard G. Davis, Associate Economist Edw ard G. G uy, Deputy General Counsel Raym ond J. D oll, Associate Economist John N icoll, Assistant General Counsel Lyle E. G ram ley, Associate Economist J. C harles P artee, 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. R eynolds, Associate Economist A lan R. Holm es, Manager, System Open Market Account C harles A. Coombs, Special Manager, System Open Market Account Peter D. S ternlig ht, Deputy Manager, System Open Market Account FEDERAL ADVISORY COUNCIL Thom as I. S torrs, 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. M errigan, 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. K orsvik, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 89 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 ........... 19105 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 George C. Rankin 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. Boysen Denver .................. 80217 Maurice B. Mitchell J. David Hamilton 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 Fredric 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 John B. Williams Los Angeles......... 90051 Joseph R. Vaughan Gerald R. Kelly Portland................. 97208 John R. Howard William M. Brown Salt Lake City...... 84110 Sam H. Bennion A. Grant Holman Seattle.................... 98124 C. Henry Bacon, Jr. Paul W. Cavan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 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. $20.00 per THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 year or $2.00 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, $18.00 per year or $1.75 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. Elsewhere, $24.00 per year or $2.50 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 $12.00 per year or $1.25 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, $1.00 each. Elsewhere, SURVEY OF FINANCIAL CHARACTERISTICS OF $15.00 per year or $1.50 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. $1.25 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, $1.00 each. $.85 each. Elsewhere, $1.50 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 each. 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 91 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) SDRs IN FEDERAL RESERVE OPERATIONS AND STATISTICS. 5/70. THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF MEASURES OF SECURITY CREDIT. 12/70. 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 COMPANIES, 1951-70, by Robert Moore Fisher and INTEREST RATES, CREDIT FLOWS, AND MONETARY Barbara Negri Opper. Aug. 1973. 83 pp. AGGREGATES SINCE 1964. 6/71. 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 ADJUSTMENT FOR SEASONAL VARIATION. 6/41. REFORM. 6/72. 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. RESEARCH ON BANKING STRUCTURE AND PER­ ONE-BANK HOLDING COMPANIES BEFORE THE 1970 FORMANCE, Staff Economic Study by Tynan AMENDMENTS. 12/72. Smith. 4/66. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with REVISION OF THE MONEY STOCK MEASURES AND Frank E. Hopkins and Michael D. Sherman. 11/66. MEMBER BANK RESERVES AND DEPOSITS. 2/73. REVISED SERIES ON COMMERCIAL AND INDUS­ STATE AND LOCAL BORROWING ANTICIPATIONS TRIAL LOANS BY INDUSTRY. 2/67. AND REALIZATIONS. 4/73. INTEREST COST EFFECTS OF COMMERCIAL BANK YIELDS ON RECENTLY OFFERED CORPORATE UNDERWRITING OF MUNICIPAL REVENUE BONDS. 5/73. BONDS. 8/67. FEDERAL FISCAL POLICY, 1965-72. 6/73. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN SOME PROBLEMS OF CENTRAL BANKING. 6/73. 1960-67. 4/68. CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ FEDERAL FISCAL POLICY IN THE 1960’s. 9/68. DUSTRIES. 8/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 CREDIT-CARD AND CHECK-CREDIT PLANS AT COM­ REVISED MEASURES. 4/74. MERCIAL BANKS. 9/73. OPEN MARKET OPERATIONS IN 1973. 5/74. RATES ON CONSUMER INSTALMENT LOANS. 9/73. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI­ ABLES AND THEIR ROLE IN MONETARY POLICY. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. 5/74. 10/73. TREASURY AND FEDERAL RESERVE FOREIGN EX­ NEW SERIES FOR LARGE MANUFACTURING COR­ CHANGE OPERATIONS, INTERIM REPORT. 6/74. PORATIONS. 10/73. BANKING AND MONETARY STATISTICS, 1973. Se­ MONEY SUPPLY IN THE CONDUCT OF MONETARY lected series of banking and monetary statistics for POLICY. 11/73. 1973 only. 3/74 and 7/74. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. FINANCIAL DEVELOPMENTS IN THE SECOND REVISION OF THE MONEY STOCK MEASURES AND QUARTER OF 1974. 8/74. MEMBER BANK DEPOSITS. 2/74. TREASURY AND FEDERAL RESERVE FOREIGN EX­ RECENT DEVELOPMENTS IN THE U.S. BALANCE OF CHANGE OPERATIONS. 9/74. PAYMENTS. 4/74. CHANGES IN TIME AND SAVINGS DEPOSITS AT CHANGES IN BANK LENDING PRACTICES, 1973. 4/74. COMMERCIAL BANKS, OCTOBER 1973-JANUARY CAPACITY UTILIZATION FOR MAJOR MATERIALS: 1974. 9/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 93 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers, 11, 27, 29 Demand deposits—Continued Agricultural loans of commercial banks, 18, 20 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners): corporations, 26 Banks, by classes, 16, 18, 19, 20, 32 Subject to reserve requirements, 15 Federal Reserve Banks, 12 Turnover, 13 Nonfinancial corporations, current, 43 Deposits (See also specific types of deposits): Automobiles: Accumulated at commercial banks for payment of Consumer instalment credit, 47, 48, 49 personal loans, 26 Production index, 50, 51 Banks, by classes, 16, 19, 23, 32 Federal Reserve Banks, 12, 74 Bank credit proxy, 15 Subject to reserve requirements, 15 Bankers balances, 18, 19, 22 Discount rates (See Interest rates) (See also Foreigners, claims on, and liabilities to) Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 40 Dividends, corporate, 43, 79 Bonds (See also U.S. Govt, securities): New issues, 40, 41, 42 Employment, 52, 54 Yields and prices, 30, 31 Branch banks: Farm mortgage loans, 44 Assets, foreign branches of U.S. banks, 72 Federal agency obligations, 11, 12, 13 Liabilities of U.S. banks to their foreign branches and Federal finance: foreign branches of U.S. banks, 24, 73 Receipts and outlays, 34, 35 Brokerage balances, 71 Treasury operating balance, 34 Business expenditures on new plant and equipment, 43 Federal funds, 7, 18, 20, 24, 29 Business indexes, 52 Federal home loan banks, 39, 40 Business loans (See Commercial and industrial loans) Federal Home Loan Mortgage Corporation, 39, 44, 45 Federal Housing Administration, 44, 45, 46 Capacity utilization, 52 Federal intermediate credit banks, 39, 40 Capital accounts: Federal land banks, 39, 40, 44 Banks, by classes, 16, 19, 24 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Federal Reserve Banks, 12 Federal Reserve Banks: Central banks, 77, 78 Condition statement, 12 Certificates of deposit, 24 U.S. Govt, securities held, 4, 12, 13, 36, 37 Commercial and industrial loans: Federal Reserve credit, 4, 6, 12, 13 Commercial banks, 15, 18, 27 Federal Reserve notes, 12 Weekly reporting banks, 20-24, 25 Federally sponsored credit agencies, 39, 40 Commercial banks: Finance companies: Assets and liabilities, 15, 16, 18, 19, 20 Loans, 20, 48, 49 Consumer loans held, by type, 47 Paper, 27, 29 Deposits at, for payment of personal loans, 26 Financial institutions, loans to, 18, 20 Loans sold outright, 27 Float, 4 Number, by classes, 16 Flow of funds, 58, 59 Real estate mortgages held, by type of holder and prop­ erty, 44-46 Foreign: Commercial paper, 27, 29 Currency operations, 11, 12 Condition statements (See Assets and liabilities) Deposits in U.S. banks, 5, 12, 19, 23, 74 Construction, 52, 53 Exchange rates, 77 Consumer credit: Trade, 61 Instalment credit, 47, 48, 49 Foreigners: Noninstalment credit, 47 Claims on, 68, 69, 70, 74, 75, 76 Consumer price indexes, 52, 55 Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Consumption expenditures, 56, 57 Corporations: Gold: Profits, taxes, and dividends, 43 Certificates, 12 Sales, revenue, profits, and dividends of large manufac­ Earmarked, 74 turing corporations, 79 Net purchases by United States, 62 Security issues, 41, 42 Reserves of central banks and govts., 78 Security yields and prices, 30, 31 Stock, 4, 61 Cost of living (See Consumer price indexes) Government National Mortgage Assn., 44 Currency and coin, 5, 9, 18 Gross national product, 56, 57 Currency in circulation, 5, 14 Customer credit, stock market, 31, 32 Housing permits, 52 Debits to deposit accounts, 13 Housing starts, 53 Debt (See specific types of debt or securities) Demand deposits: Income, national and personal, 56, 57 Adjusted, commercial banks, 13, 15, 19 Industrial production index, 50, 51, 52 Banks, by classes, 16, 19, 23 Instalment loans, 47, 48, 49 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 58-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 58-A hguorht 4-A segap o t era secnerefeR( A 94 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1974 Insurance companies, 33, 36, 37, 44, 46 Real estate loans: Insured commercial banks, 16, 18, 26 Banks, by classes, 18, 21, 32, 44 Interbank deposits, 16, 19 Mortgage yields, 45, 46 Interest rates: Type of holder and property mortgaged, 44-46 Bond and stock yields, 30 Reserve position, basic, member banks, 7 Business loans by banks, 28 Reserve requirements, member banks, 9 Federal Reserve Banks, 8 Reserves: Foreign countries, 76, 77 Central banks and govts., 78 Money market rates, 29 Commercial banks, 19, 22, 24 Mortgage yields, 45, 46 Federal Reserve Banks, 12 Prime rate, commercial banks, 28 Member banks, 5, 6, 15, 19 Time and savings deposits, maximum rates, 10 U.S. reserve assets, 61 International capital transactions of U.S., 63-76 Residential mortgage loans, 45, 46 International institutions, 62, 77, 78 Retail credit, 47, 48, 49 Inventories, 56 Retail sales, 52 Investment companies, issues and assets, 42 Investments (See also specific types of investments): Sales, revenue, profits, and dividends of large manufacturing Banks, by classes, 16, 18, 21, 22, 32 corporations, 79 Commercial banks, 15 Saving: Federal Reserve Banks, 12, 13 Flow of funds series, 58 Life insurance companies, 33 National income series, 56, 57 Savings and loan assns., 33 Savings and loan assns., 33, 37, 44, 46 Savings deposits (See Time deposits) Savings institutions, principal assets, 32, 33 Labor force, 54 Securities (See also U.S. Govt, securities): Life insurance companies (See Insurance companies) Federally sponsored agencies, 39, 40 Loans (See also specific types of loans): International transactions, 70, 71 Banks, by classes, 16, 18, 20, 32 New issues, 40, 41, 42 Commercial banks, 15, 16, 18, 20, 25, 27, 28 Yields and prices, 30, 31 Federal Reserve Banks, 4, 6, 8, 12, 13 Special Drawing Rights, 4, 12, 60, 61 Insurance companies, 33, 46 State and local govts.: Insured or guaranteed by U.S., 44, 45, 46 Deposits, 19, 23 Savings and loan assns., 33 Holdings of U.S. Govt, securities, 36, 37 New security issues, 40, 41 Manufacturers: Ownership of securities of, 18, 22, 32 Capacity utilization, 52 Yields and prices of securities, 30, 31 Production index, 51, 52 State member banks, 17, 26 Margin requirements, 10 Stock market credit, 31, 32 Member banks: Stocks (See also Securities): Assets and liabilities, by classes, 16, 18 New issues, 41, 42 Borrowings at Federal Reserve Banks, 6, 12 Yields and prices, 30, 31 Number, by classes, 16 Operating ratios, 80—85 Tax receipts, Federal, 35 Reserve position, basic, 7 Time deposits, 10, 15, 16, 19, 23 Reserve requirements, 9 Treasury currency, Treasury cash, 4, 5 Reserves and related items, 4, 6, 15 Treasury deposits, 5, 12, 34 Mining, production index, 51 Treasury operating balance, 34 Mobile home shipments, 53 Money market rates (See Interest rates) Unemployment, 54 Money stock and related data, 14 U.S. balance of payments, 60 Mortgages (See Real estate loans and Residential mortgage U.S. Govt, balances: loans) Commercial bank holdings, 19, 23 Mutual funds (See Investment companies) Member bank holdings, 15 Mutual savings banks, 23, 32, 36, 37, 44, 46 Treasury deposits at Reserve Banks, 5, 12, 34 U.S. Govt, securities: National banks, 16, 26 Bank holdings, 16, 18, 21, 32, 36, 37 National defense expenditures, 35 Dealer transactions, positions, and financing, 38 National income, 56, 57 Federal Reserve Bank holdings, 4, 12, 13, 36, 37 Nonmember banks, 17, 18, 19, 26, 79 Foreign and international holdings, 12, 68, 70, 74 International transactions, 68, 70 New issues, gross proceeds, 41 Open market transactions, 11 Open market transactions, 11 r Operating ratios, member banks, 80-85 Outstanding, by type of security, 36, 37 Ownership, 36, 37 Yields and prices, 30, 31 Payrolls, manufacturing index, 52 Utilities, production index, 51 Personal income, 57 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^1) CHicagoj Omafui* Xinctvnam Kansas Citt^ Oktakoma. City Atlanta Dallas Jiouston JfewOrCtMts > an Antonio < ‘Drawn by'RW. QaLvin, Cart A (p THE FEDERAL RESERVE SYSTEM ) q a ALAS KA HAWAII Legend Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis