Federal Reserve Bulletin, 1974-10

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

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FEDERAL RESERVE BULLETIN NUMBER 10 • VOLUME 60 • OCTOBER 1974 CONTENTS 683 Inflation and Stagnation in Major Foreign Industrial Countries 699 The Conference on Inflation 702 Statements to Congress 712 Record of Policy Actions of the Federal Open Market Committee 723 Law Department 740 Announcements 743 Industrial Production Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 60 International Statistics A 80 Board of Governors and Staff A 82 Open Market Committee and Staff; Federal Advisory Council A 83 Federal Reserve Banks and Branches A 84 Federal Reserve Board Publications A 87 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 Lyie 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

Inflation and Stagnation in Major Foreign Industrial Countries This article was prepared in the World Payments and Economic Activity Section of the Division of International Finance. The economies of virtually all major industrial countries are currently experiencing slow growth, no growth, or absolute declines in their aggregate output. In all cases, the weakness in output is being accompanied by extremely rapid inflation. This widespread ''stagflation" follows a very sharp upturn in economic activity in 1972 and early 1973, an upturn that was made even sharper because it occurred simultaneously throughout the industrial world. The acceleration of output brought the real economic growth of six major foreign countries—France, Germany, Italy, the United Kingdom, Japan, and Canada—to an exceptionally high annual rate of 9V2 per cent in the first half of 1973. This rate of growth was clearly unsustainable, and, in fact, supply constraints began to appear by mid-1973. Furthermore, economic policy began to shift in order to contain demand within the limits of available capacity. Thus the sharp acceleration of output was followed by an equally sharp deceleration—to a 2% per cent annual rate of real economic growth in the second half of 1973. The effects on output of demand and supply forces in late 1973 and early 1974 are difficult to separate. The cutback in crude petroleum production affected the over-all supply situation in some countries much more than in others; there is little doubt that in Japan, for example, the effect was considerable. In addition, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN • OCTOBER 1974 United Kingdom experienced a crippling coal miners' strike, which helped to bring about a fall in aggregate output in the first quarter of 1974. But during the second quarter of this year, when real gross national product (GNP) increased at a reduced rate in France, remained virtually flat in Canada and Japan, fell in Germany, and did not quite return to the pre-strike level in the United Kingdom, it became increasingly clear that demand factors were beginning to dominate the weakening economic situation. From the second half of 1973 to the first half of 1974, real GNP in the six foreign countries combined showed virtually no change, declining at an annual rate of of 1 per cent. This cessation of growth is associated with restrictive policies that have been pursued in most major countries since mid-1973 and in Germany since late 1972. Both the sharp cyclical upswing of 1972-73 and the deceleration beginning in mid-1973 have been marked by extraordinarily rapid inflation. During the upswing, declining spare capacity and unusually strong worldwide demand for raw materials put increasing upward pressure on price levels. In addition, the rapid rise of incomes in many countries in recent years increased the demand for protein-rich foods, and satisfaction of this increased demand became more difficult in 1972 and 1973 because of the poor harvests of 1972. In 1974 the very low levels of stocks of foodstuffs and the shortfalls that are occurring in the output of some crops have been putting renewed upward pressure on food prices. By the end of July, spot prices for raw foods reached a new peak, 25 per cent above their level at the beginning of the year, and they have declined only slightly since then. GROWTH IN REAL GROSS NATIONAL PRODUCT *1973 weights and exchange rates. Seasonally adjusted annual rates of change from preceding half-year; data from Table 1 and OECD. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 685 Upward price pressures on goods other than foods have been mitigated somewhat by the decline in recent months of world prices for metals and fibers; by the end of September spot prices for metals on world markets (in dollar terms) had been reduced by almost one-half from their cyclical peak last May, and prices of fibers were down by one-third from their January high. Prices of final products, however, are continuing to rise throughout the world, as the lower prices for raw materials are not likely to work through to the finished-goods stage for some time. For the 3-month period ending in August 1974, a weighted average of consumer prices in the six foreign countries had risen by 16 per cent over the same period of the preceding year, compared with an average increase of about 4V2 per cent per annum during the 1962-71 period. Price inflation is now being exacerbated by attempts by labor and businesses to raise, or at least maintain, their real incomes and profits. The quantum jump in petroleum prices in late 1973 intensified both upward pressures on prices and tendencies toward reduced real output. Without a corresponding decline in some other prices, the fourfold increase in the import price of crude oil—a vital raw material entering into the production of a wide range of industrial and consumer products—necessarily led to an increase in the general price level. The initial cutbacks in crude petroleum production at first affected the ability of the oil-consuming countries to maintain existing levels of industrial output. But as petroleum production was restored to earlier levels and prices were increased, the main continuing effects of the oil crisis have been its direct impact on the general price level through increases in the prices CANADA FRANCE TOTAL* SIX MAJOR FOREIGN COUNTRCS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN • OCTOBER 1974 of petroleum products and the costs of producing other goods and the impact of these price and cost changes, in turn, on aggregate demand. Assessing the net effect of the oil price increases on aggregate demand is difficult. Without offsetting policy actions, consumers' real incomes are reduced by the large rise in the price of oil just as they would be by the imposition of an excise tax. At the same time, however, the cost increases stemming from the rise in oil prices may, for example, stimulate new investment designed to save petroleum or to produce energy from other sources. Still, there is little doubt that the oil price increases have served to intensify the already strong inflationary exp)ectations that economic policy during the past year or so has been trying to combat. Confronted with unprecedented price inflation, policymakers everywhere have the same dilemma: how to cope simultaneously with a possible excessive weakening of activity and with continuing rapid inflation. Their response, in general, has been to give priority to slowing inflation, and they have done so primarily through the use of demand-management measures. When demand held up a little better than expected during the period of oil supply shortages, and inflation rates increased more rapidly than expected, most governments imposed further restrictive policy measures. These measures, at first, were mainly in the monetary area, but fiscal policy actions were also taken in some countries. Partial results for the second quarter and leading indicators for the third quarter of this year suggest that earlier predictions, widely made, of upturns in economic activity in the second half of this year were overly optimistic. Activity now is more sluggish, and price inflation more severe, than had been anticipated. Faced with this situation, the majority of governments have not changed their policies perceptibly. In Germany and the United Kingdom, however, restrictive policies have been eased somewhat during 1974. COMPONENTS OF In a number of countries an upsurge in investment and a large OUTPUT AND expansion in foreign trade played an important role in the economic EXPENDITURE growth of early 1973. The current weakness in economic activity appears to be widespread arnong all sectors, although in comparison with preceding cycles, consumption is especially weak. (All components of output and expenditure discussed in this section and shown in Tables 1 and 2 are expressed in real terms, unless indicated otherwise.) The rate of growth of residential construction began to decline in most countries in 1973 as a result of tight monetary policies and, in some cases, as a result of earlier speculative overbuilding. Residential construction was strong only in Canada and Japan. But in the first half of 1974, it was depressed in Japan also. From Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 687 the second half of 1973 to the first half of 1974, residential construction declined at annual rates of about 37 per cent in Japan and 33 per cent in the United Kingdom. In Germany, consistent national accounts data for residential construction are not available TABLE 1 REAL GNP AND MAJOR COMPONENTS IN SELECTED INDUSTRIAL COUNTRIES Percentage changes at annual rates, seasonally adjusted From previous year From previous half year 11996622--7711 CCoouunnttrryy aanndd ccoommppoonneenntt aavveerraaggee 1972 1973 I973-H1 1973-H2 1974-Hl France» GNP 5.7 5.7 6.0 6.6 5.5 43/4® Private consumption 5.5 5.8 6.0 6.2 5.8 41/4® Govt, current expenditures 3.3 4.0 3.4 4.2 4.2 Gross fixed capital formation 8.2 7.6 6.7 5.7 5.6 5%e Exports 9.7 10.3 12.7 11.9 8.9 n.a. Imports 10.3 14.6 14.1 22.0 2.5 n.a. Germany GNP 4.7 3.5 5.3 8.8 .5 2.1 Private consumption 4.9 4.2 2.9 6.7 -3.5 1.0 Govt, current expenditures 4.4 4.1 3.8 4.7 4.6 3.0 Gross fixed capital formation 5.3 2.7 1.0 7.6 -8.6 -5.1 Exports 9.1 7.8 16.2 21.7 8.3 26.5 Imports 10.2 8.2 9.8 16.9 -1.3 8.2 Italy 2 GNP 5.0 3.1 5.9 4.2 9.8 2'/2^ Private consumption 5.6 3.3 6.2 7.1 5.8 Govt, current expenditures 3.9 4.6 3.3 2.6 2.6 3'/2® Gross fixed capital formation 3.7 .4 9.9 5.0 19.3 43/4® Exports 11.9 11.6 5.3 -8.7 37.1 2%^ Imports 11.2 13.1 11.9 13.4 13.7 United Kingdom GDP 2.6 3.1 5.3 9.7 — 1.1 -1.9 Private consumption 2.3 6.0 4.6 5.6 .7 -1.9 Govt, current expenditures 2.1 4.0 3.7 3.4 4.6 - .5 Gross fixed capital formation 4.0 2.4 4.8 7.7 3.4 -5.7 Exports 5.3 2.6 9.1 17.7 3.7 7.9 Imports 4.5 9.9 11.2 14.1 8.7 -1.6 Japan GNP 10.3 8.9 10.5 13.4 1.9 -8.1 Private consumption 8.9 9.1 8.6 8.2 7.7 -6.6 Govt, current expenditures 6.7 9.6 6.9 7.1 6.2 -1.1 Gross fixed capital formation 13.0 9.5 15.9 19.9 9.5 -27.5 Exports 16.5 7.5 6.5 1.8 2.5 28.4 Imports 12.6 8.4 23.8 26.0 23.2 13.9 Canada GNP 5.5 5.8 6.8 9.1 4.4 5.6 Private consumption 4.9 6.9 8.0 9.9 4.8 6.6 Govt, current expenditures 5.8 4.0 4.1 0 7.2 8.6 Gross fixed capital formation 5.8 5.3 10.4 13.5 15.2 8.5 Exports 9.1 7.1 8.3 13.2 -5.7 -1.6 Imports 7.9 11.9 12.4 13.5 7.6 10.6 United States GNP 4.2 6.2 5.9 7.3 2.0 -3.4 Private consumption 4.4 6.2 4.7 6.3 - .9 -3.5 Govt, current expenditures 3.4 2.7 .9 2.3 1.0 1.7 Gross fixed capital formation 4.8 11.5 7.9 13.2 -1.6 -6.7 Exports 6.5 6.7 19.6 28.7 8.0 16.7 Imports 8.8 11.6 5.6 12.7 -5.8 8.0 ^Annual data and trade data from national sources; other half-yearly data and estimates from OECD, and consistent with annual data. ^Annual data from national sources; half-yearly data and estimates from OECD, and indicative only because not completely consistent with annual data. ® Estimated, n.a. Not available. SOURCE.—National sources and OECD. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN • OCTOBER 1974 for the period under consideration, but it is clear from data on building permits and completions that the housing sector remains very depressed. In the second quarter of 1974, for example, building permits were 33 per cent below their year-earlier level, and the nominal value of new housing sales was down by 15 per cent despite large price increases. In 1973 industrial investment in machinery and equipment was a strong component of demand in almost all countries except Germany. Between 1972 and 1973 it rose at rates ranging from 12 per cent in the United Kingdom to 19 per cent in Japan. As a result, despite the slowdown in the growth of residential construction, total fixed capital formation in most cases not only increased at a rate faster than its longer-run average but also accounted for a substantial share of the growth of GNP. For Japan, the most extreme case, almost three-fifths of GNP growth in 1973 went into gross fixed capital formation, compared with a 1962-71 average of about two-fifths. For France, Italy, and Canada, about one-third of the total growth in GNP in 1973 was in the form of gross fixed capital formation. Only in Germany, where monetary conditions were tight and a tax was imposed on newly acquired capital goods in May 1973, did fixed capital formation contribute very little to over-all growth, as expenditures rose in the first half of the year but fell sharply in the second. TABLE 2 MAJOR COMPONENTS OF REAL GROSS CAPITAL FORMATION IN SELECTED INDUSTRIAL COUNTRIES Percentage changes at annual rates, seasonally adjusted From previous year From previous half year CCoommppoonneenntt aanndd ccoouunnttrryy 1972 1973 1973-Hl 1973-H2 1974-Hl Machinery and equipment, private: Germany* - .1 11..99 66..00 --44..77 --1133..00 United Kingdom^ -2.8 12.4 18.5 13.5 n.a. Japan 5.8 19.3 19.3 24.0 -25.1 Canada 10.3 13.9 18.3 18.2 14.1 United States 11.8 15.4 22.1 4.3 .1 Private residential construction: United Kingdom 18.1 7.4 14.4 -8.0 -32.5 Japan 16.3 17.8 18.9 17.7 -36.8 Canada 10.9 12.8 13.7 18.7 11.7 United States 17.9 -4.1 0 -18.5 -30.3 Inventory changes:^ Germany ..77 11..55 11..22 11..77 - .1 United Kingdom - .1 1.3 1.7 .8 - .2 Japan 2.9 3.8 5.0 3.0 5.5 Canada .6 1.1 .9 1.2 1.9 United States .9 1.4 .9 1.7 1.1 * Private and public. 2Plant and machinery (private and public). ^Change in inventories as a percentage of preceding period's GNP (GDP in the United Kingdom), n.a. Not available. SOURCE.—National sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 689 During most of 1973 supply constraints limited the growth in economic activity, thereby motivating large increases in planned investment. The early-1974 predictions of a pick-up in general economic activity in the second half of this year were based in part on the e^jcpectation that investment in machinery and equipment would remain strong. It was thought that investment intentions based on longer-run capacity assessments would not be scaled down significantly despite possible short-term sluggishness in demand. Indeed, surveys of investment intentions in most countries early in 1974 pointed to a further expansion of investment activity beyond the high levels reached in 1973. However, because of general difficulties in obtaining financing (and in Japan, because of administrative restraints) some companies have not been able to implement their investment intentions fully. In addition, a large share of investment is influenced by short-term fluctuations in demand. By the second quarter of 1974 private capital outlays for machinery and equipment in almost all major foreign industrial countries were either declining or experiencing much slower growth than before. Nevertheless, such investment on the whole has held up better than might have been expected at a time when consumption was showing considerable weakness. This fact may be explained in part by lags in the carrying out of investment plans and in part by the longer-run capacity considerations mentioned above. The behavior of inventories in the present cycle has been somewhat unusual, although the rapid rates of price change make it difficult to identify changes in volume with much confidence. In most cycles, the downturn in activity has been reinforced by inventory decumulation. But it seems that the expansion of demand during 1973 was so rapid and the pressure on supply so strong that stocks remained fairly low in most countries, except perhaps in Japan. Thus, despite the present slowdown, inventory decumulation has been only fractional in some countries, and there actually have been increases in the United States, Japan, and Canada, although it should be noted that in Canada economic activity remained strong through the first quarter of this year. To some degree the performance of inventories may reflect involuntary build-ups—in unsold stocks of automobiles, for example—but it is not a sufficient explanation for the over-all movements. The general and very rapid expansion in demand in 1972 and early 1973 in the industrialized countries led to an extremely rapid expansion of world trade. The volume of world trade grew by 13 per cent from 1972 to 1973 as compared with a longer-run average annual increase of 9 per cent. Exports of goods and services from France, Germany, the United Kingdom, and Canada continued to grow rapidly in the first half of 1973, but their growth slowed in the second half. In Italy production problems held back Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN • OCTOBER 1974 exports, which resumed their growth only around the middle of 1973. In the first half of 1974, a further large increase in German exports resulted in a rise in net exports of goods and services of almost 20 billion marks at an annual rate; at the same time, GNP grew by only 6 billion marks. Exports also grew very rapidly in Japan this year, at an annual rate of almost 30 per cent from the second half of 1973 to the first half of 1974, thus providing the only expansionary support among all sectors of demand. On the whole, exports have remained strong everywhere except in Canada. But, with the exceptions of Germany and Japan noted above, they are no longer a significant expansionary force. Recently, the strength of export demand appears to have stemmed from areas outside the industrial world, particularly from exports to the oil-producing countries and other primary producers. But the outlook for further near-term growth in exports to the nonindustrialized countries that are not oil producers is dim because the financial positions of many of these countries are becoming increasingly precarious. These countries are now experiencing a large deterioration in their terms of trade not only because of the rise m petroleum prices, but also because of increases in the prices of food imports and of recent declines in the prices of some of their exports. Although some of these non-oil-producing countries added considerable amounts to their reserves during the 1972-early 1974 commodity boom, their reserve positions can be eroded quickly. The ability of many of these countries to purchase imports will thus depend, sooner or later, upon external financing possibilities. Private consumption expenditures in the industrial countries were a dynamic factor in over-all growth in the second half of 1972, except in Germany and Japan, but rising prices and growing uncertainty about the general economic outlook slowed the growth of consumption during 1973, especially in the second half. In fact, consumption fell in Germany during this period—possibly also because of a surcharge on income taxes—and remained flat in the United Kingdom. During the first half of 1974, consumption continued to weaken in several countries, the most severe case being the per cent (annual rate) decline in Japan. The weakness in the automobile sector, which in some countries is included in investment rather than consumption, clearly relates in part to the oil crisis. But other sectors of consumer spending less directly affected by petroleum prices also have shown little growth in real terms. The slackening in growth of consumption expenditures reflects in part slower growth of real disposable incomes. It is true that increases in hourly wage rates over the past year have been large enough to exceed the rapid rises in consumer prices in almost all major countries. But average earnings have increased less rapidly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 691 than wage rates because as economic activity has weakened, the average number of hours worked per week has fallen, with the greatest decline coming in the number of more-highly-paid overtime hours. Furthermore, as money incomes rose, under progressive tax systems, the share of tax payments rose also, thereby cutting into both real and nominal disposable incomes. (Among the six major foreign industrial countries, Canada is the only one that has indexed the personal income tax system to price increases.) The sharp decline in stock and bond prices may also have contributed to weakness in consumption demand, since consumers may have been generally more reluctant to spend as the value of their financial assets declined. The fall in equity prices has been especially dramatic. In the 12 months ending in September 1974 stock prices fell by about one-fifth in Germany and Japan, one-third in Canada and France, two-fifths in the United States, and more than one-half in the United Kingdom. In terms of real purchasing power, declines in portfolio values have been even greater. During the recent upswing, unemployment rates declined sharply in the United Kingdom and Canada, as well as in the United States. By mid-1973, however, unemployment rates were still above their longer-run averages in the United Kingdom and Canada, but were at or near their longer-term averages in Germany, Japan, and Italy. The weakening of activity since mid-1973 has not been fully UNEMPLOYMENT AS A PERCENTAGE OF THE LABOR FORCE GERMANY 4APAN 1962-71 AVERAGE 1962-71 AVERAGE ITALY* UNITED KINGDOM* . 1962-71 AVERAGE CANADA UNITED STATES 1962-71 AVERAGE 1962-71 AVERAGE *Data for January, April, July, and October. ** Great Britain only. Seasonally adjusted data from national sources and International Labour Office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN • OCTOBER 1974 reflected in unemployment rates mainly because, in the early stages of the downturn, employers cut the workweek rather than their labor force. In Germany, where the cyclical downturn started earlier, unemployment rates have been rising steadily since the beginning of the year and are now well above the longer-run average. In brief, real output is not growing in the industrial countries as a whole. And the short-run outlook, according to most observers, is that the level of output will remain virtually flat, at best, and that resources will become increasingly underutilized. PRICE INFLATION During both the expansion and the contraction phases of the current cycle, price increases have been extraordinarily rapid in all countries. Increases in wholesale prices in the major industrial countries from the 3 months ending August 1973 to the corre- TABLE 3 CONSUMER PRICES IN SELECTED INDUSTRIAL COUNTRIES Percentage changes, not seasonally adjusted From same period of preceding year From previous year 1962-71 Country and index component average 1973 1974 1972 1973 Qi Q2 Q3 Q4 Qi Q2 1Q3 France Total index: 4.3 6.2 7.3 6.5 7.1 7.6 8.3 11.3 13.6 14.3 Foods 4.3 7.9 9.4 8.2 9.6 10.5 10.9 12.3 12.9 12.5 Nonfood items 4.2 5.2 6.5 5.8 6.0 6.5 7.2 10.8 13.9 15.1 Germany Total index: 2.9 5.5 6.9 6.5 7.3 6.9 7.3 7.4 7.1 6.9 Foods 2.2 6.0 8.0 8.2 10.2 7.2 6.4 6.5 4.9 4.9 Nonfood items 3.2 5.4 6.7 5.8 6.5 6.8 7.5 7.7 7.7 7.7 Italy Total index: 4.2 5.7 10.8 8.8 11.1 11.6 11.7 14.5 16.4 17.2 Foods 3.8 6.3 12.0 10.6 13.3 12.7 11.7 13.6 13.8 14.3 Nonfood items 4.5 5.3 9.9 7.4 9.3 10.8 11.6 15.1 18.3 19.4 United Kingdom Total index: .... 4.7 7.1 9.2 7.9 9.3 9.2 10.3 12.9 15.9 16.5 Foods 4.7 8.9 15.1 11.3 15.5 14.3 18.8 19.1 17.7 17.6 Nonfood items 4.7 6.5 7.3 6.8 7.4 7.5 7.5 10.8 15.1 16.0 Japan Total index: .... 5.8 4.5 11.7 7.1 10.5 12.8 16.4 24.5 23.9 24.7 Foods 6.6 3.9 13.0 8.1 11.6 14.3 18.0 28.7 26.4 27.5 Nonfood items 5.3 5.0 10.8 6.4 9.8 11.8 15.3 21.6 22.1 22.8 Canada Total index: .... 2.9 4.8 7.6 5.9 7.3 8.2 9.0 9.7 10.7 11.2 Foods 2.8 7.6 14.6 10.4 14.7 15.5 17.4 17.3 17.2 16.0 Nonfood items 3.0 3.7 5.0 4.2 4.6 5.4 6.0 6.9 8.4 9.4 United States Total index: .... 3.1 3.3 6.2 4.1 5.5 6.9 8.4 9.9 10.7 11.3 Foods 2.9 4.3 14.5 8.0 12.6 17.4 19.5 19.3 15.5 12.4 Nonfood items 3.1 3.0 3.9 3.0 3.5 3.8 5.2 7.0 9.1 11.0 ^Three-month period ending in August for France, Germany, Japan, Canada, and United States; in July for United Kingdom and Italy. SOURCE—National sources, OECD, and F.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 693 spending period this year have ranged from 16 per cent in Germany to 42 per cent in Italy. Consumer price increases were considerably smaller, but very high by historical standards, ranging from about 7 per cent in Germany to 25 per cent in Japan. (See Table 3.) Year-to-year price increases, however, obscure the movement toward some slowdown in the rate of inflation in both of these countries. Recently, month-to-month price increases have diminished in Germany and Japan, and the slowing has been greater than would have been expected from seasonal forces alone. The fact that consumer prices have risen less rapidly than wholesale prices is often attributed to the delayed impact of wholesale on retail prices. On that basis, a further acceleration in consumer prices might be expected. However, an increase in consumer prices on the scale of the recent increases at the wholesale level may not occur. First, wholesale price indexes may overstate the actual rate of price increase because of the multiple counting that is inherent in the structure of most such indexes. The increases in crude petroleum prices, for example, have a multiple effect, since petroleum is included in the indexes as crude petroleum, as a refined product, and finally as a component of many other goods. Second, average prices of services, which do not enter the wholesale price indexes, have until recently been rising more slowly than have prices of goods in a number of countries. Increases in oil prices probably were the largest single factor contributing to the increase in inflation rates during the first half of this year. Over a longer period, however, the effect of the large increases in food prices has been even more important. Higher food prices in major industrial countries accounted for from about one-fifth to almost one-half of the over-all rise in consumer prices from the 3 months ending in August 1973 to the same period of this year. In comparison, according to estimates made by the Organization for Economic Cooperation and Development (OECD), the price increases resulting from higher petroleum prices ROLE OF FOOD IN CONSUMER PRICE INCREASES PERCENTAGE DISTRIBUTION FOODS OTHER JAPAN ITALY UNITED KINGDOM FRANCE UNITED STATES CANADA GERMANY Rates of increase are for 3-month period July for United Kingdom and Italy. Data ending in August over same period of pre- from Table 3 and national sources. ceding year; for 3-month period ending in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN • OCTOBER 1974 TABLE 4 WAGE RATES IN SELECTED INDUSTRIAL COUNTRIES Percentage changes, not seasonally adjusted From same p>eriod of preceding year FFrroomm pprreevviioouuss yyeeaarr CCCooouuunnntttrrryyy 1973 1974 1972 1973 Q1 Q2 Q3 Q4 Qi Q2 »Q3 France 11.4 14.4 12.8 13.8 15.1 15.9 17.5 20.1 n.a. Germany 9.4 10.4 9.6 10.4 10.6 10.7 11.7 12.1 12.3 Italy 10.4 24.3 15.1 24.2 28.3 28.7 27.9 22.1 n.a. United Kingdom 13.8 13.7 13.3 15.6 14.2 11.8 14.3 15.1 18.4 Japan 16.2 19.7 17.5 19.3 21.5 20.9 23.8 30.3 n.a. Canada^ 7.9 9.0 8.6 9.0 8.7 9.5 9.8 11.6 12.3 United States^ 6.4 6.6 6.2 6.4 7.1 7.0 6.6 7.5 8.1 ^Three-month period ending in August for the United King- United Kingdom, basic weekly wage rates, all manual workers; dom; in July for Germany and Canada. Japan, index of regular monthly wages and salaries, all indus- 2Data seasonally adjusted, tries, adjusted by index of hours worked per month; Canada, n.a. Not available. average hourly earnings, manufacturing industries; United DEFINITIONS—France, hourly wage rates, all activities; States, average hourly earnings, total private nonfarm, adjusted Germany, general index of hourly wage rates, all activities; for overtime and interindustry wage shifts. Italy, wage and salary rates, manufacturing, hourly basis; SOURCE.—National sources and OECD. may have accounted for about one-fifth of the over-all increase in consumer prices for the OECD countries as a whole from September 1973 to March 1974. By now, that impact may have grown to about one-fourth, as public utility charges have increased further and prices of domestically produced oil and other sources of energy have also risen. Recent wage contracts make it clear that wages are becoming an active force supplementing demand pressures and supply shortfalls as a cause of price inflation. In most countries wage rates rose rapidly in 1973, and this rise has accelerated in recent months. (See Table 4.) One reason for this is the spreading use of cost-ofliving escalator clauses, which quickly translate higher prices into higher wages. Nevertheless, labor militancy is increasing as a reaction to the extremely high rates at which prices are rising, particularly for those items that are important in family budgets, and the number of hours lost due to labor disputes has increased in a number of countries. Thus a major impetus to price increases in the near future* may stem from wage-push inflation, especially now that, with declining activity, increases in productivity are small or nonexistent. FINANCIAL In most countries, monetary aggregates expanded rapidly during CONDITIONS the upswing of the cycle in 1972 and the first half of 1973. As monetary authorities moved to more restrictive policies, the growth in the narrowly defined money stock (Mi) slowed considerably. The rate of growth of the money stock more broadly defined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 695 (generally comparable to Mg or Mg in the United States) also declined except in Canada, where economic growth still was strong in the first quarter of 1974. Complete data for the first half of 1974 on monetary aggregates for France and Italy, where economic growth continued to be relatively strong, are not available. Both short-term and long-term interest rates have risen sharply since early 1973. Although short-term rates have declined in many markets since last summer, they remain high everywhere by historical standards. The rate for 3-month Euro-dollar deposits, for example, averaged 13.6 per cent in August of this year compared with 7.4 per cent in the first quarter of 1973, but by mid-October it had fallen back to about 11 per cent. As stock prices declined, dividend yields also moved to unusually high levels. It is difficult to obtain a clear picture of financial conditions by observing merely the growth of the several monetary aggregates and the rise in yields on financial assets. The growth rates of Mi and Mg (or Mg in the United Kingdom), and the divergence between them, reflect a variety of policy actions and market factors, including changes in asset preferences resulting from the relatively higher yields on time deposits compared with demand deposits or competing nonmonetary assets. Similarly, the higher level of financial yields is the result not only of monetary policy actions but also MONEY SUPPLY GERMANY - - ^UNITED KINGDOM* •October 1971 = 100. Index numbers, seasonally adjusted data from national sources. NOTE.—Definitions of MI, MG, and MG differ somewhat from country to country. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDERAL RESERVE BULLETIN • OCTOBER 1974 of major upheavals in financial markets and of heightened inflationary expectations. ECONOMIC POLICIES It has been noted earlier that weakening real output is still coupled with inflation rates that are high by historical standards almost everywhere, and that most authorities have been following restrictive policies. The timing and the particular types of policies being pursued in different countries—^whether general monetary and fiscal policies or direct intervention in the pricing and credit distribution mechanisms—^reflect circumstances specific to each country, as well as differing views among governments as to how to deal with these problems. The German authorities face a less diflScult policy dilemma than do some other governments. The German inflation rate is now the lowest among the large countries, in part because the restrictive policies that were introduced as far back as late 1972 kept excess demand from developing to the same extent as elsewhere. Because demand pressures appeared to have moderated in Germany, the government began to ease its restrictive fiscal policy toward the end of last year. The 11 per cent tax that had been imposed on private capital expenditures in May 1973 was lifted in December, strict government budget ceilings were relaxed somewhat, and the 10 per cent surtax on middle- and high-income groups was allowed to expire on schedule as of July 1, 1974. Tax reform measures coming into effect on January 1, 1975, will add considerably to the disposable income of low- and middle-income groups. The German authorities have also introduced a small program aimed primarily at helping the depressed construction industry. The external sector is not a policy constraint—indeed, a reduction in the country's large trade surplus would be welcome. Although monetary policy in Germany still appears restrictive in intent, the German Federal Bank has recently moved to offset market influences that would have produced unwanted further tightening of monetary conditions. Reserve requirements have been reduced, and barriers to capital inflows have been removed. The German authorities have been consistently opposed to controls on prices and wages. In general, they prefer to use demand-management policies to damp down inflation, although they do have an ongoing system of informal consultations among government, labor, and management on the formulation of wage policy. The United Kingdom recently has also chosen to relax restrictive policies a little, even though, in contrast to Germany, there has been no significant decrease in the underlying rate of inflation and the current account of the balance of payments has been weak. But the deficit on current account has been financed without much diflSculty, in part by public sector borrowing and in part by an inflow of funds from oil producers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFLATION AND STAGNATION IN MAJOR COUNTRIES 697 The 1974-75 budget, introduced at the end of March, had the effect of reinforcing policies designed to damp demand. However, in mid-July the government moved to improve the investment climate and stimulate employment, while at the same time endeavoring to hold down the price level. Specific measures included a reduction in the standard rate of value-added tax from 10 to 8 per cent; an increase in statutory ceilings on dividend payments; an increased subsidy for workers employed in development areas; a subsidy for certain food items, especially household flour (subsidies already existed for bread, butter, and milk); and a rollback of some of this year's increases in homeowners' real estate taxes. In September, the government announced that expenditures on public works would be increased beginning next year. And the British authorities have recently allowed financial conditions to ease somewhat. A supplementary budget is scheduled to be announced on November 12. The ease with which the current-account deficit has been financed is an important difference between the United Kingdom and Italy. In Italy, restrictive policies became necessary for two reasons: a large deterioration in the external situation and intolerable rates of inflation. Last spring, the Italian authorities imposed limits on over-all credit expansion and introduced an import deposit scheme, thereby producing a severe liquidity squeeze. In July the government reinforced these measures with a fiscal package that included increases in corporate income taxes, in some indirect taxes, and in public utility charges, as well as limits on the growth of government expenditures. These policies may have contributed to a slowing in the growth of output and to some improvement in the very large external imbalance, as the trade deficit was reduced somewhat and there appears to have been a slowing or reversal of capital outflows. Nevertheless, Italy's external financial problems remain severe, and the inflation rate remains extremely high. Japan, like Italy, was one of the countries hardest hit by the oil crisis, and the inflation rate there has been especially high. To cope with this situation, the Japanese authorities have restrained demand severely. The supplementary budget for 1973-74 and the 1974-75 budget called for large cutbacks in real expenditures, particularly for public works. In addition, in an effort to restrain petroleum imports, electricity rates were increased and industrial usage of energy was administratively curtailed. Furthermore, the Japanese authorities have pursued a very tight monetary policy coupled with administrative guidance aimed at slowing private investment expenditures. Finally, selective price controls were instituted early this year, but these were progressively lifted in subsequent months and then terminated in September. In spite of the sharp decline in real GNP in the first quarter of 1974 and further declines in industrial output thereafter, the Japanese authorities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN • OCTOBER 1974 indicated that they would continue to keep policies tight in order to consolidate the progress made thus far. In France, economic expansion is still relatively strong despite various programs of demand restraint and the slowing of growth in France's major trading partners. Policy measures instituted in June were aimed at dampening all sectors of internal demand in order to reduce both the rate of inflation and the trade deficit; these measures reinforced a stabilization package with similar aims that had been introduced in March. The June measures included an 18 per cent surtax on corporate incomes, surtaxes on individual incomes in the higher tax brackets, and a surtax on capital gains from real estate transactions. In order to reduce the country's import bill, base prices for energy products were raised, and in addition, the tax on gasoline was increased. Furthermore, quantitative ceilings on the expansion of credit were continued at their previous levels, and penalty payments were made more severe. In September the government announced a ceiling on the total value of petroleum that can be imported into France during 1975; an allocation system for heating oil is now being instituted. Finally, the price guidance system has been progressively tightened. Nevertheless, the inflation rate has remained virtually unchanged during the course of this year, and the current rate of growth of output in France is above that in most other industrial countries. Canada, where economic growth continued to be strong through the first quarter of this year, has been in a different position from other major OECD countries. The country as a whole is self-sufficient in petroleum. Nevertheless, a rise in the domestic price of oil has contributed to over-all price inflation. Moreover, the decline in real output in the United States in the first half of 1974 has adversely affected Canadian economic activity. Monetary policy has been tightened since the early part of 1973 in order to stem inflation, but official statements have emphasized that monetary policy will continue to accommodate the growth of output and employment. The budget that was announced before last July's election represented a more or less neutral policy stance, a new budget is expected soon. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

699 The Conference on Inflation Mr. President, I am not going to take full component parts, and equipment remain acute advantage of the opportunity you are giving me. in many of our essential industries. If I took equal time, you and this fine audience Secondly, as a result of the inflation, conmight have to listen to me for a full hour or sumer purchasing power is being eroded. Durtwo. But I do want to take a few minutes and ing the past year the take-home pay of the comment on the inflation problem and on the typical worker has declined from 4 to 5 per cent role of monetary policy. in what it will buy. I listened very carefully to every speaker this In the third place, as a result of the inflation, morning. I was encouraged by the fact that the real value of the savings deposits, pension everyone showed full understanding of the reserves, and life insurance policies of the gravity of the inflation problem that our Nation American public has diminished. is now facing. I learned one thing more, namely, Fourth, as a result of the inflation, corporate that the Federal Reserve will not necessarily profits derived from domestic operations have win a popularity contest. eroded—a fact that is concealed by accounting Now the job of the Federal Reserve System techniques that were devised originally for inis not to be popular. Our job is to use all of flation-free times. our energy, all of the ability and knowledge that Fifth, as a result of the inflation, financial we can muster, to help protect the jobs of markets have been experiencing strains and American workers and the integrity of their stresses. Interest rates have soared. Some fimoney. nancial and industrial firms have found it more In doing our job we operate in an environment difiScult to refund maturing debt or to raise that is made by others, by the Congress, by trade needed funds in the money and capital markets. unions, by business firms, by the general public. The savings flow to thrift institutions has sharply Now there are some facts of life that the Federal diminished and stock prices have been badly Reserve Board must take account of if it is to depressed. serve the public with good conscience. The In short, as a result of the inflation, much Federal Reserve has to make some hard deci- of the planning that American business firms sions, if only because hard decisions are being and households customarily do has been upset avoided by others. I want to call your attention and the driving force of econcfmic expansion has to some hard facts of life. been blunted. We are in the midst of an inflation that has It should not be surprising, therefore, that the been gathering force over the past decade. This physical performance of the economy has staginflation has now reached a stage where it is nated in recent months, and that unemployment endangering our economic and political future. is now larger than it was last fall. We cannot As a result of the inflation, first of all, our realistically expect a resurgence of economic Nation's capacity to produce has suffered a activity until confidence in our Nation's econsetback. Despite sluggish economic conditions omy is restored. for some months now, shortages of materials, The most important requirement for rebuilding confidence, I believe, is hard evidence that we are making progress in checking the disease NOTE.—Remarks by Arthur F. Burns, Chairman, of inflation. Board of Governors of the Federal Reserve System, at In view of the protracted character and the the Conference on Inflation, Washington, D.C., September 27, 1974. growing intensity of inflation, the Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN • OCTOBER 1974 serve has been striving for some time to hold We have, therefore, been able recently to take down the growth of money and credit. actions that have reduced somewhat the pres- I received a good deal of advice this morning, sures exerted on the banking system. Short-term all of which suggested that the monetary spigot market interest rates have responded to this should be opened up. I was told to let the money relaxation and have declined from their early supply expand more rapidly so that interest rates July peaks. could come down. If that advice were followed, Long-term market interest rates have stabithe inflation would become much more intense lized, albeit at very high levels, and they can and interest rates, as they always do in such surely be expected to fall back once some circumstances, would go higher and higher and progress is made in curbing inflation. Mortgage soon be a good deal above their present level. interest rates and other institutionally deter- Rapid monetary expansion in the present in- mined rates traditionally lag behind market flationary environment would add fuel to the rates, and they, too, will respond to progress fires of inflation and thus worsen our economic in curbing inflation. troubles. The recent movements of interest rates are Now we at the Federal Reserve have tried encouraging, but we cannot count on any very to apply the monetary brakes firmly enough to substantial reduction until borrowers and lenders get results, but we have also been mindful of in the market are convinced that the Federal the need to allow the supply of money and credit Reserve is no longer pursuing a lonely struggle to keep expanding moderately. The over-all against inflation. supply of money and credit has continued to Monetary policy is much too blunt an instrugrow this year but at a slower pace than before. ment to be relied upon exclusively in what needs However, the demand for money and credit to be a national crusade to bring inflation under has been much greater than the supply. As a control. result of the huge demand for borrowed funds, It is of vital importance that fiscal policy credit markets have become tight and interest actively join in the battle. Frugality in public rates have risen to an extraordinarily high level. expenditures, and a budget that is tilted toward These high interest rates have imposed a surpluses instead of deficits, can make an enorheavy burden on businesses and families across mous contribution to curbing inflation and to the Nation. Homebuilding in particular has been lowering interest rates. hard hit by the developments in the money A policy of monitoring wages and prices— market. Soaring interest rates, outflows of de- but relying on voluntary cooperation—can also posits from thrift institutions, and the conse- play a modest, but useful, role in curbing inflaquent decline in availability of mortgage credit tionary excesses. I am hopeful that the newly have greatly aggravated the condition of the established Council on Wage and Price Stability homebuilding industry, which was already suf- will help to point the way to to anti-inflationary fering from sharply rising construction costs, conduct on the part of business, labor, and the from erosion in the purchasing power of con- consuming public alike. sumer incomes, and from the overbuilding of Programs that seek to enlarge our Nation's the last 2 years. productive capacity and to intensify the forces It may now be, however, that tensions in of competition can be very helpful in combating financial markets are beginning to ease. With inflation over a longer period of time. In this continued moderation in current demands for connection let me stress the need to devise goods and services, shortages and imbalances effective measures for improving the producin our factories and shops are diminishing. And tivity of our labor force, which has been lagging the Federal Reserve in recent months has been badly of late. Greater output potential and insuccessful, as I have already suggested, in lim- creased productivity per worker are essential to iting the growth of money and credit to reason- achieving a better life for all of our people. ably appropriate dimensions. In closing, I want to assert once again and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE CONFERENCE ON INFLATION 701 to assure you that the Federal Reserve will sibilities as the Nation's lender of last resort, persevere in pursuing monetary policies that are and we will not hesitate to come to the assistnecessary to curb our rampant inflation. ance of financial institutions that are caught in We also intend to keep the supply of money a temporary liquidity squeeze. and credit moving upward, so that the needs I can assure you all that there will be no credit of the economy may be met. crunch in our country. Further, we fully recognize our respon- Thank you very much, Mr. President. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 Statements to Congress Statement by Arthur F. Burns, Chairman, thrift institutions have shrunk, and the flow of Board of Governors of the Federal Reserve mortgage and construction loans has sharply System, before the Budget Committee, U.S. diminished. House of Representatives, September 25, 1974. In short, as a result of the inflation, much of the planning that American business firms I welcome the opportunity to meet with this and households customarily do has been upset. committee as it assumes its responsibilities Confidence has deteriorated, and the driving under the Congressional Budget Act of 1974. force of economic expansion has been blunted. As you well know, our Nation is struggling It should not be surprising, therefore, that the with a grave inflationary problem. The economy physical performance of the economy has been has been damaged, and our people are deeply sluggish in recent months. With consumer inconcerned. More determined action to curb in- comes eroding, the demand for new autos, moflation has therefore become an urgent need. The bile homes, household furnishings, and other discipline that this committee—and its Senate durable goods has weakened. The homebuilding counterpart—can impart to the Federal budget industry has been hurt not only by the shrinkage may be a decisive factor in our Nation's ability of consumer incomes but also by rising land to regain control of its economic destiny. prices and construction costs, the high interest The inflation in which we are so deeply en- rates, and the shortage of mortgage funds. Inmeshed began to spread across the economy 10 dustrial production is running 2 per cent below years ago. The problem has steadily worsened, the peak of November 1973, and employment with only an occasional respite. The level of in manufacturing since then has declined by wholesale prices is now about 18 per cent above almost 300,000. a year ago, after rising almost 4 per cent in Public policy is thus confronted with a most August—the largest increase in more than a difficult problem. The forces of economic exquarter of a century. Consumer prices advanced pansion have weakened to a point where, in another 1.3 per cent in August and are 11 per earlier times, serious consideration would have cent above a year ago. been given to stimulative monetary and fiscal Inflation has been eroding the purchasing policies. In present circumstances, however, power of both consumers and businesses. The such measures would aggravate an already grave take-home pay of the typical worker declined inflationary problem and plunge our economy materially in real terms during the past year, before long into even deeper trouble. and so too did the real value of the public's Defeat of inflationary forces must remain the savings, pensions, and life insurance policies major goal of public policy. We cannot realistiaccumulated over the years. Corporate profits cally expect a resurgence of economic activity have also suffered—a fact that is concealed by until the confidence of our people in their own accounting techniques that have come down and the Nation's economic future is restored. from inflation-free times. I have noted on prior occasions that a large As a result of the inflation, financial markets part of the current inflationary problem is due have been experiencing severe strains and to special factors. In most years, the economies stresses. Interest rates have soared, and stock of different nations follow divergent trends. In prices have plummeted. Some financial and in- 1973, however, a business-cycle boom occurred dustrial firms have found it more difficult to roll simultaneously in the United States and in every over their commercial paper or to raise needed other major industrial country. With production funds through other channels. Savings flows to rising rapidly across the world, prices of labor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 703 materials, and finished products were bid up One result of the sharply rising trend of everywhere. Federal expenditures is that Government has The effects of the worldwide boom on our been assuming an ever larger role in the ecoprice level were magnified by the depreciation nomic life of our people. Where the line can of the dollar in foreign exchange markets. With be best drawn between public and private use larger export orders adding to expanded domes- of resources is, of course, a matter of judgment tic requirements, demand pressures became and of social values. Nonetheless, it should be particularly intense in the materials-producing clear to everyone that Federal spending, whatindustries, where expansion of capacity has ever its level, needs to be financed on a sound been slight in recent years. Severe shortages basis. developed, and prices of basic materials shot Deficit spending by the Federal Government up. can be justified at a time of substantial unem- Disappointing crop harvests and the manipu- ployment. It becomes a source of economic lation of petroleum prices by oil-exporting instability, however, during a period of exubercountries have also imparted an upward thrust ant activity—such as we have experienced in to the general price level during the past year recent years. The huge and persistent deficits and a half. More recently, prices and wages of the past decade added enormously to aggrehave reacted strongly to the removal of direct gate demand for goods and services, but they controls. added little to our capacity to produce. They These special factors have played a prominent have thus been directly responsible for a subrole of late, but they do not account for all of stantial part of the inflationary problem. our inflation. For many years, our economy and The current inflation began in the middle that of most other nations has been subject to 1960's when our Government embarked on a an underlying inflationary bias that has merely highly expansive fiscal policy. Large tax reducbeen magnified by special influences. tions occurred in 1964 and the first half of 1965, The roots of that bias lie in the rising expec- and they were immediately followed by an extations of people everywhere. Properly directed, plosion of Federal spending. New and substanthis human drive is a powerful force for im- tial tax reductions occurred again in 1969 and proving the general welfare. But individuals and 1971, and they too were followed by massive business firms have in recent times come to increases of expenditures. depend more and more on government, and less Deficits have therefore mounted. In the last on their own initiative, to achieve their eco- five fiscal years, that is, from 1970 through nomic objectives. In responding to the insistent 1974, the public debt—including obligations of demands for economic and social improvement, the Federal credit agencies—has risen by more governments have often lost control of their than $100 billion, a larger increase than in the budgets, and deficit spending has become a previous 24 years. habitual practice. In many countries, monetary In the fiscal year just concluded, the reported policy has supplied an inflationary element on budget deficit declined to about $314 billion. its own, besides accommodating fiscal excesses. This was a much smaller deficit than in the three The course of Federal expenditures over the preceding years. But when off-budget outlays long sweep of our Nation's history conveys both and the expenditures of governmentally spona lesson and a warning. These expenditures first sored agencies are taken into account, as I reached the $100 billion level in fiscal 1962, believe they should be, the total Federal deficit or nearly 200 years after the founding of the reached $21 billion last year, which is not much Republic. By fiscal 1971, or 9 years later, lower than the corresponding deficits of the three spending had risen another $100 billion and thus previous fiscal years. This is a sorry record of passed the $200 billion mark. And the $300 fiscal policy during a period of sharply rising billion mark will surely be exceeded this fiscal prices. year unless the Congress and the administration Our people have understandably become immove at once to prune expenditures. patient, and the Congress has reacted by setting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN • OCTOBER 1974 in motion revolutionary changes in its budgetary I also believe, and more strongly with each procedures. What fiscal steps and other meas- passing week, that monetary policy should not ures will prove most constructive in current carry so large a part of the burden of restraint. circumstances, when our Nation is threatened The second ingredient of an effective antiby increasing unemployment as well as by gal- inflation program, and one that is urgently loping inflation, cannot be foreseen with any needed, is a persuasive move toward fiscal reprecision. But the general direction for public straint on the part of the Federal Government. policy seems clear to me, and in any event it Full implementation of the new budgetary is my duty to share my thinking with your procedures for which this committee is responcommittee. sible will not begin for two more years. We First, a policy of moderate monetary restraint dare not wait that long, however, for the fiscal remains appropriate, and it will probably be discipline required in the present inflationary required for a considerable time. As you know, environment. A determined effort should be the Federal Reserve has been pursuing a policy made immediately to pare budget expenditures of slowing down increases of money and credit. in fiscal 1975 and to balance the budget in fiscal We have tried to apply the monetary brakes 1976. firmly enough to get results, but we have also I recognize that this committee is not yet in been mindful of the need to avoid a credit a good position to recommend where expendicrunch. Thus, the supply of money and credit ture cuts would be most appropriate. Neverhas continued to grow, although at a slower pace theless, you can justly use your good ofl[ices than in recent years. to press for prompt action to restrain Federal The narrowly defined money supply—that is, spending. currency plus demand deposits—has expanded A meaningful cut in Federal spending—say, so far this year at an annual rate of 5% per a reduction of 5 billion or even 10 billion dollars cent, in contrast to 6 per cent during 1973. If in this year's budget—cannot be expected to the time deposits of commercial banks, except have a large, visible impact on the price level for their large certificates of deposit, are also in the near future. But it is highly important included in the money supply, the rate of growth to recognize that the effects of a given act of thus far this year has been 8 per cent, in contrast fiscal restraint on prices will cumulate as times to 9 per cent during 1973. move on; that if this year's fiscal restraint is Clearly, the American economy—taken as a repeated next year and the year after, the cumuwhole—has not been starved for funds. Yet, the lative effects will swell; and that once a deterdemand for money and credit has been rising mination to cut the budget back is demonstrated, at a very much faster pace than the supply. As beneficial effects on both the stock market and a result, credit markets have become strained interest rates can come rather promptly. and interest rates have risen to levels such as Let me turn next to a third ingredient of a we have not previously known in over a century program for regaining general price stability. of our Nation's recorded experience. While effective monetary and fiscal policies are The policy of monetary restraint pursued by absolutely essential to this objective, an incomes the Federal Reserve has helped to cool the policy that relies on voluntary cooperation can economy by moderating the expansion of credit still play a modest—but useful—contributory and disciplining inflationary psychology. But, role. There is much good will among our citias you know, the incidence of monetary policy zens, and it would be wise to mobilize it in is uneven. Excessive reliance on monetary re- the struggle against inflation. straint leads to unwanted side effects that, of The newly established Council on Wage and late, have been all too evident. The fabric of Price Stability is a step in the right direction. our financial structure has perhaps been Even without enforcement powers, this agency stretched as much as it safely can. can hold hearings on wage and price changes The Federal Reserve must—and will—perse- in pace-setting industries; it can make recomvere in the fateful struggle against inflation. But mendations; it can call attention to abuses of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 705 economic power by business firms or trade other major oil-importing countries how ecounions; it can feel its way toward wage and price nomic, financial, and political measures can be guidelines; and it can certainly bring the force most effectively used to achieve an early and of public opinion to bear on wage or price substantial reduction in the price of crude oil. changes that appear detrimental to the national A fifth part of an anti-inflation program should interest. focus on policies for enlarging our productive A Labor-Management Committee, under the capacity and intensifying the forces of competichairmanship of the President, might become tion. Incentives to invest have not been adequate another constructive force. Labor and manage- in recent years to keep industrial capacity exment clearly have a mutual interest in ending panding in step with our economy's needs, and inflation. If our Nation's business and labor this requires the most earnest attention of polleaders will meet frequently and reason to- icy-makers. gether, practical means may yet be found to A strengthening of equity markets through interrupt the cycle of wage, cost, and price liberalization of the capital gains tax would be increases that is so damaging to our economy. helpful in providing share capital at a more As a fourth part of an anti-inflation program, reasonable cost. This could probably be accomour Nation needs an energy policy—as President plished without impairing tax revenues this Ford has emphasized—that will exert downward year. Moreover, business firms themselves pressure on the international price of crude oil. could gradually increase the supply of internal Some success in this direction would not only funds for investment by adopting more realistic help to check inflation, it would also reduce the and sensible accounting procedures. Many firms massive diversion of purchasing power to oil- fail to value the inventories used up in the producing countries and make the problem of production process on a replacement-cost basis, recycling funds to the oil-consuming countries with the result that earnings are overstated and more manageable. taxes are paid on fictitious profits. Since the end of the oil embargo, efforts to Our capacity to produce could be enlarged conserve fuel have diminished. Our electric by establishing local productivity councils to lights are again blazing away needlessly; the 55 increase efficiency in our Nation's workshops. mile per hour speed law is less rigorously en- It could also be enlarged by removing obstacles forced, and gasoline consumption is rising; air to supply that are sanctioned by legislation or conditioners hummed excessively this summer, custom. For example, building codes in many and our heating furnaces will probably soon be. communities are badly outdated; minimum Clearly, voluntary efforts to conserve fuel and wage laws restrict access to jobs by teenagers; broaden the use of fuel-saving devices need to and barriers to entry or governmental regulation be strengthened. Legislative actions should also restrict output in some of our industries. Our be considered, particularly tax measures aiming product markets could be made more competito curtail the consumption of oil and gasoline. tive by stricter enforcement of the antitrust laws, We cannot stop, however, with conservation by stiffer penalties for their violation, by repeal measures. For one thing, it is necessary to of special-interest legislation such as the Davisbreathe life into Project Independence before it Bacon Act and the Jones Act, and by passage expires from inactivity. This will require, of the proposed Trade Reform Act. And our among other things, reduction of obstacles to labor markets could function better if we develthe expansion of nuclear facilities by our electric oped a nationwide system of job banks, comutilities, and sufficient relaxation of antipollu- prehensive statistics on job vacancies, and adetion regulations to encourage much more exten- quate manpower training programs. sive use of coal. And in view of the extraor- Sixth, and finally, an anti-inflation program dinary financial problems caused around the should recognize that restrictive monetary and world by the Organization of Petroleum Ex- fiscal policies have uneven effects on the econporting Countries (OPEC) actions on oil prices, omy—that some sectors are merely inconvenwe cannot afford to lose time in exploring with ienced, but that others suffer hardship. Home- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN • OCTOBER 1974 building, in particular, is highly sensitive to if not entirely, by cutting expenditures elsemoney market developments, as the drastic de- where or by making minor additions to tax cline of housing starts has once again demon- revenues. strated. Basic reforms of home mortgage fi- In sketching this six-part program, I have nance are essential, so that homebuilding activ- sought to suggest that this country needs a broad ities may be more stable in the future. Mean- and eclectic approach to the inflation problem; while, another layer of governmental subsidy that restrictive monetary and fiscal policies are for this stricken industry may be urgently basic but insufficient; that they can be usefully needed. supplemented by incomes-, energy-, and sup- It would also be wise to provide promptly ply-expanding policies; that measures are also for a public service employment program that needed to alleviate the harsh impact of a policy would be triggered if and when the national of monetary and fiscal restraint on some sectors unemployment rate averaged more than 6 per of our economy; and that long-range as well cent for a 3-month period, and that could pro- as immediate considerations require attention. vide up to 800,000 jobs at a cost that might I hope that the Congress will recognize general reach, say, $4 billion. A contingency plan of price stability as a prime objective of public this type would reduce fears of unemployment. policy by promptly passing a concurrent resolu- It would be practical as well as compassionate, tion to that effect, and that you will then turn for it would enable the Federal Government to to exploring in detail the numerous thoughtful continue longer with the restrictive monetary suggestions that are emerging from the ''summit and fiscal policies that are needed to bring meetings." inflation gradually under control. Your committee's efforts to restore order in In the interest of fiscal discipline, the funds Federal finances can make the difference bethat would be required to expand public service tween success and failure in the fight against employment, as well as any additional housing inflation. I assure you that the Federal Reserve program, would have to be found in large part. will do everything it can to facilitate your task. Statement by Arthur F. Burns, Chairman, much more steeply, at an annual rate of over Board of Governors of the Federal Reserve 30 per cent. And prices of farm products and System, before the Joint Economic Committee, processed foods at wholesale, after declining in October 10, 1974. the spring, have recently moved up sharply again in response to disappointing crop pros- I am pleased to appear before this committee pects. once again this year to discuss our Nation's Sustained double-digit inflation has pervasive economic problems. Your main concern at these implications for the performance of the econhearings, as I understand it, is to assess our omy. Despite sizable wage gains the real earn- Nation's needs and prospects for capital forma- ings of urban workers have eroded and contion. Any such inquiry, I believe, should take sumer buying has suffered. Reports on business as its starting point a general evaluation of sales and profits are superficially favorable, but economic and financial conditions as they exist they have in fact been distorted by the inflation. at the present time. Profits from domestic operations, after allow- The rampant inflation that we have been ex- ance for the effects of arbitrary accounting periencing is having profound effects on the practices, have been generally disappointing. state of our economy—on production, jobs, Financial relationships have also been thrown interest rates, and security prices. Thus far this out of kilter. Nominal interest rates have soared year, the consumer price index has risen at an because of the inflation premium demanded and annual rate averaging XlVi per cent. Wholesale received by investors; savers have shifted funds prices of industrial commodities have risen from the depositary institutions to higher-yield- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 707 ing market instruments; stock prices have sure, but the investment in plant and equipplummeted. ment—and in the short run, a considerable part A still more ominous result of the inflation of the labor force—is not readily transferable is the spread of doubts among businessmen and to other endeavors. consumers. They do not know what their future The moderation in the Nation's over-all outexpenses will be in dollar terms, nor whether put has already lasted a full year. Even so, some their incomes will be sufficient to meet their industrial materials, component parts, and costs. They do not know how they can protect equipment remain in short supply. Steel, alumitheir accumulated savings, the real value of num, coal, plastics, paper, and basic chemicals which has been eroding despite a continuing are still counted among the shortages, as well build-up in dollar terms. They do not know what as fabricated products such as electric motors, markets will be hurt by, nor what markets will bearings, and metal castings. Supply conditions benefit from, the higher and higher prices that have gradually been improving, however, and people must pay. In short, the basic premises price quotations for some sensitive industrial for the planning that is customarily done by raw materials have declined of late. The weekly American business firms and households have index of prices of such materials that the Federal been upset, and the driving force of economic Reserve maintains has dropped 18 per cent since expansion has been blunted. the April peak, though it remains higher than It is not surprising, therefore, that the physi- at any time prior to last December. cal performance of the economy has stagnated I am hopeful that the availability of basic in recent months. Aggregate real output dropped industrial materials will continue to improve. As in the first quarter of the year, as the Nation it does so, there will be room for orderly exwas adjusting to the shortage and steeper prices pansion of output by industries that are heavy of petroleum, and it seems to have weakened users of materials. Sizable investment programs somewhat further during the second and third are now under way in many of the basic materiquarters. Industrial production has been less als industries, which will be adding significantly affected by the slump in demand, but in August to their capacity in 1975 and subsequent years. it was about 2 per cent below the peak of last Capital spending plans for 1974, for example, November. As a result of slower real output and are indicated to exceed 1973 outlays by 42 per sales, the demand for labor has tended to mod- cent in the paper industry, 35 per cent in the erate. The length of the average workweek has primary metals industry, and 20 per cent in declined somewhat, and the growth in employ- chemicals. These data reflect, of course, higher ment has slowed. The labor force has continued prices as well as larger physical quantities. to expand, however, so that the unemployment Judging from reports on new appropriations and rate has moved higher and it reached 5.8 per capital spending plans, further substantial incent in September. creases in manufacturers' capital outlays are in The recent stagnation in real output and the prospect for next year. associated deterioration in employment condi- It should be noted that the shortages in protions are regrettable manifestations of the dam- ductive capacity have been spotty rather than age to our economy wrought by inflation. If general in character. We estimate that the basic these recessive tendencies persist, they must and materials industries have been operating, on will be resisted. But a vital point that has been average, at about 90 per cent of capacity thus commonly overlooked is that, given the pattern far this year. This is somewhat below the 1973 of demands in the economy, we have not had operating rate, when supplies ' were excepthe capacity for significantly larger output over tionally tight, but higher than in most other the past year. Idle capacity that could be used years during the past decade. For manufacturing to produce more automobiles or housing units generally, on the other hand, operating rates does not directly provide resources that can be appear to be considerably lower. used to produce the goods and services that are Thus far this year, business capital expendiin stronger demand. The use of raw materials tures have extended their rising trend, in real in these sluggish activities is reduced, to be terms as well as dollars. Indeed, larger gains Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN • OCTOBER 1974 might be difficult to achieve in the short run, and credit supply to keep expanding moderately. since production of business equipment appears Our policies have had considerable success to be close to the limits of that industry's capa- in dampening the expansion of the monetary bility. The output of business equipment has aggregates. So far this year, the narrowly degrown little this year in the face of continued fined money supply—that is, currency plus delarge increases of order backlogs. Preliminary mand deposits—has grown at an annual rate of readings suggest that capital spending will con- 4V2 per cent, in contrast to an average increase tinue at a high level next year, but may not grow of 7 per cent during the preceding 3 years. much in real terms. We need to encourage larger Under a broader concept of money, defined to business capital formation in the interest of encompass also time deposits of commercial enlarging our productive capacity, modernizing banks, except for their large negotiable certifiindustrial technology, and intensifying the cates of deposit, the money supply has grown forces of competition. at a 7 per cent rate, in contrast to a 10V2 per Many observers are forecasting a deepening cent average rate of increase during the 1971-73 recession in the U.S economy in the year ahead. period. On present evidence, I believe that they are Thus, the monetary aggregates have continunduly pessimistic. Capital spending, as I have ued to grow this year, albeit at a more moderate said, can and should move ahead, particularly rate than earlier. However, the demand for if tax incentives to investment are increased. money and credit has been much greater than Residential construction activity, which is now the supply. Short-term business credit, as repbadly depressed, is likely to experience a revival resented by borrowing at commercial banks and in the year ahead. The expanded program of in the commercial paper market, rose at an governmental assistance in the mortgage market annual rate of more than 20 per cent during the announced by the President will contribute first 8 months of 1974. New public offerings toward that end. of corporate bonds in the capital market have We cannot realistically expect a sustained been nearly double the volume of a year ago. resurgence of economic activity, however, until As a result of the huge demand for borrowed confidence in our Nation's economy is restored. funds, credit markets tightened and interest rates This, I believe, will require hard evidence that in both short- and long-term markets rose to an we are making progress in checking the disease extraordinarily high level. of inflation. Frugality in spending by the Federal Such large credit requirements may seem Government, and moderation in the wage de- puzzling in view of the recent sharp increases mands of workers and in the pricing practices in reported corporate profits. But the profits of business firms, are essential to regaining being reported by many business firms are in stability in the value of the dollar. Meaningful part illusory. They are based on accounting progress in combatting inflation would lead to principles devised for a noninflationary envia resurgence in consumer buying, a reduction ronment, and they therefore fail to reflect adein interest rates, a restoration of financial asset quately the impact of inflation on the cost of values, and a rebuilding of the optimism and replacing the inventories, plant, and equipment confidence that engender greater willingness to that are, so to speak, consumed in the process save and to invest for the future. of production. The profits actually available for Given the intensity of the inflation, as well expansion of investment, or for dividend payas the excessive pressures on supply that have ments, have not increased this year. On the been present in key industries, the Board of contrary, they have declined significantly. Governors of the Federal Reserve System has The most recent comprehensive data on profbeen striving for some time to hold down the its relate to the second quarter. Total corporate growth of money and credit. The policy that profits before taxes, according to the Departwe have pursued represents a middle course. ment of Commerce, were at a seasonally ad- We have tried to apply the monetary brakes justed annual rate of $143.5 billion in that firmly enough to get results, but we have also period. However, this figure includes the earnbeen mindful of the need to allow the money ings of Federal Reserve Banks and other finan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 709 cial institutions. It includes the income gen- The strains in financial markets have been erated by the operations of foreign branches and reflected not only in the rise of interest rates but subsidiaries of American corporations. And it also in a widening of risk premiums among also includes the amounts paid by corporations credit instruments of differing quality. Investor on account of the Federal income tax. When confidence has been shaken by the difficulties we eliminate these several elements, we find experienced by the Franklin National Bank, by that the after-tax profits of all manufacturing and the closing or reported losses of some foreign other nonfinancial corporations were at a $67 banks, and by the acknowledged financial probbillion annual rate in the second quarter, or 18 lems of a few large corporations. Market rumors per cent above the corresponding quarter in have aggravated the situation, and some sound 1973. borrowers have found it exceedingly difficult to But this profits figure still fails to allow for obtain open market credit. the using up of low-cost inventories to support The Federal Reserve has repeatedly made current sales. When the higher cost of replacing known its intent to fulfill its responsibilities as these inventories is deducted from reported the Nation's lender of last resort. We have profits, the amount remaining for all other pur- provided large amounts of temporary assistance poses is 21 per cent below the level in the second to Franklin National and small amounts to a few quarter of 1973. Indeed, when so adjusted, other institutions. This has helped to calm fears recent corporate profits appear to be substan- and has enabled financial markets to function tially lower than in the latter half of the 1960's. in an orderly manner. But tensions still remain, Moreover, these lower profit figures still make and not a few lenders and investors are cautious no allowance for the increasing amounts by about the credit risks they are willing to assume. which charge-offs for depreciation of plant and Short-term market interest rates, however, equipment have been falling short of replace- have recently been declining, and this is helping ment costs. That shortfall now amounts to many to alleviate pressures in financial markets. The billions of dollars. decline in these sensitive rates reflects, among This depressing picture of corporate profits other factors, the present stance of monetary has been largely ignored by the general public, policy. In view of the fact that substantial modbut not by the stock exchanges—as the sorry eration in the growth of money and credit has price quotations for corporate shares testify. The now been achieved, and in view also of the recent inadequate level of corporate profits has recent sluggishness in the over-all demand for forced corporations to borrow heavily, not only goods and services, the Federal Reserve has felt to finance their large and expanding capital justified in easing the pressure on bank reserves. expenditures, but often even to maintain their Federal Reserve open market operations have current production. The recent profit perform- thus been somewhat less restrictive recently, ance certainly provides too little incentive for and the interest rate on day-to-day interbank investment in the new and more efficient capac- lending has dropped from over 13 per cent in ity a growing economy will need. early July to about 10^2 per cent currently. At the very time when businesses have found Other short-term interest rates, particularly the it necessary to borrow extensively to finance Treasury bill rate, have also declined appreciatheir capital expenditure programs. Treasury bly. In early September, the Board announced and Federal agency borrowings through the se- a reduction in reserve requirements on large curities markets have remained exceptionally certificates of deposit maturing in 4 months or large. State and local governments, too, have longer. This step was primarily designed to been raising a substantial volume of funds in encourage banks to lengthen the maturity of credit markets. True, the credit flowing through their deposit liabilities, but it also released $500 the mortgage market has fallen considerably, million of bank funds for additional loans or and growth in consumer instalment credit has investments. also slowed. In total, however, the volume of It would not be appropriate for me to specufunds raised has been so large as to cause serious late how far the recent modest easing tendency financial strains. in financial markets may go. I can assure you, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN • OCTOBER 1974 however, that we at the Federal Reserve shall a drying up in the availability of mortgage credit persevere in our basic policy of restraining the and also a further sharp drop in housing starts. expansion of money and credit in the present The financing problems of the construction inflationary environment. The supply of money industry have been exacerbated, moreover, by and credit will continue to expand, but only at the abrupt curtailment in the lending activities a moderate pace. If credit demands now sub- of real estate investment trusts. These are relaside, as may happen, market interest rates could tively new institutions, which depend heavily decline further and institutionally determined on open market financing. Some of them beinterest rates, which traditionally lag behind came overextended and have experienced market rates, could be expected to follow along. difficulty in rolling over their maturing debt. Substantial progress in reducing interest rates, Much of this debt has had to be refinanced by however, is unlikely to occur until borrowers the commercial banks, which the Federal Reand lenders are convinced that monetary policy serve has encouraged—within the limits of is not alone in the struggle against inflation. I banking prudence—as part of its effort to protect believe that the program proposed by the Pres- the stability of the financial system. ident on Tuesday, if it is strongly supported by The financial distortion and difficulties that the Congress, will help provide that assurance. are caused by excessive reliance on a restrictive Excessive reliance on monetary policy to monetary policy have not been limited to the achieve the restraint needed in economic be- housing and construction industries. They are havior has costly side effects. It pushes interest felt also by other industries that must raise a rates to unduly high levels; it causes distortions large share of their funds in credit and capital in financial flows; and it forces industries that markets. The electric utilities, in particular, are heavily dependent on credit to make severe have been having a difficult time this year. High adjustments in their scale of operations. interest rates, depressed stock prices, and in- The homebuilding industry especially has ex- creased investor caution in an uncertain enviperienced serious difficulties this year in an ronment have intensified the underlying finanenvironment of rapid inflation, extraordinarily cial problems of these companies. high interest rates, and taut monetary policy. Regulatory commissions have lagged in per- Homebuilding was already suffering from in- mitting the increases in electricity rates that are flated land costs and sharply rising materials necessary to match the sharp increases in fuel prices and wage costs. Also, the supply of and other operating costs, so that the earning housing units available for rent or sale had capacity of the utilities has been badly eroded. increased to unusually high levels during 1973 As a result, the quality ratings of the bonds as a result of overbuilding in the previous 2 issued by some utility companies have been years and lagging consumer demand. The esca- reduced, and this development has added to the lation of interest rates and reduced supplies of cost of their borrowed funds. Moreover, as mortgage credit this year have thus aggravated prices of utility stocks have fallen, in many an already deteriorating situation. cases far below book value, it has become very Not only do high interest rates raise the cost difficult and expensive for the utilities to raise of home financing and thereby reduce the de- new funds through the sale of stock. mand for housing but they also induce individ- In recent months, many utilities have anual savers to shift their funds into high-yielding nounced large reductions or postponements in market instruments and away from the financial their planned capital expansion programs. To institutions that traditionally supply mortgage some degree, cutbacks of previous plans may credit. This summer, many savings and loan be warranted by the efforts of business firms associations and mutual savings banks suffered and households to conserve on the use of enoutflows of funds. Inflows of household deposits ergy. But inability to raise the necessary fito the commercial banks were also substantially nancing has also been a major consideration in lower. In consequence, these institutions were numerous instances, and this could lead to forced to cut back on their new commitments serious problems in the future. If the supply of to make mortgage loans. The result has been electric power is to be adequate for the Nation's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 711 needs in the years ahead, the utilities must be the Council's guidelines, the Board noted that in a financial position to invest heavily in new limited credit resources best serve the public capacity. interest when used for purposes that encourage In view of the financing problems that have expansion of productive capacity, sustain key developed for the utilities, for homebuilding, for sectors of national and local economies, provide the thrift institutions and real estate investment liquidity for sound businesses in temporary trusts, and perhaps for other industries, some difi^culty, and take account of the special probeconomists and legislators have suggested that lems of the homebuilding industry and of smallthere is need for a governmental program of and medium-sized businesses. direct credit allocation and control. I would In the Board's judgment, the Council's statestrongly oppose such a course of action. Special ment on lending priorities can be helpful to programs of credit assistance may well be bankers. We have sent it to all member banks needed, such as those already in operation and in the United States, and we will be following newly announced by the President for housing. their response. I would urge that other types But to embark on a policy of allocating credit of financial institutions also review their lending to particular individuals and business firms by policies with a view to the special needs of the governmental fiat would be a serious mistake, current economic and financial environment. because it would not and could not work. But any such effort must have considerable In view of the variety of financial channels flexibility in order to provide for the wide variavailable to most borrowers and lenders, con- ety of circumstances that our thousands of institrols would need to be rather comprehensive if tutions and millions of borrowers surely face. they are to be at all effective. They would need In conclusion, I would readily grant that there to include not only the banks but other institu- are numerous imperfections in the behavior of tional lenders, such as the thrift institutions, our financial system. Institutional reforms are finance companies, insurance companies, and needed. The Board supports the principles of pension funds. They would need to cover not the proposed Financial Institutions Act, which only the lending by financial institutions but also aims to strengthen depositary institutions and to the financing done through the public markets promote greater competition among them. But for debt and equity securities. They would it is also necessary to reform our regulatory probably need to regulate not only domestic structure so that the stability of the financial lending and borrowing but also access to lending system may be enhanced. This need is receiving and investing alternatives abroad. This would much attention at the Federal Reserve Board and be a task of vast administrative complexity. elsewhere, just as stronger tax incentives for Nor is even this the entire problem. The investments are concerning Treasury and other ultimate difl^culty is that by disrupting the or- Government officials. derly processes of financial markets, such a I must add, however, that in the Board's program could create serious industrial imbal- judgment, the main obstacle to the efficient ances and bring the economic activity of some functioning of our financial system is the raging industries and communities to a virtual halt. In inflation that we are experiencing. Inflation must my judgment, there is no good substitute for be brought under control not only through the the decision-making process provided by our exercise of monetary and fiscal discipline but highly developed, sensitive, and intensely com- also by a crusade in which all citizens participetitive financial system. pate, as the President has proposed. I am confi- Nevertheless, we at the Board recognize the dent that the battle against the disease of inflaneed to avoid using our Nation's scarce banking tion can be won. As meaningful progress is resources for unproductive purposes. Last made in doing so, interest rates will return to month the Board received a report prepared by lower and more normal levels, the tensions in the Federal Advisory Council—a statutory body financial markets will abate, and reasonable under the Federal Reserve Act—that suggested financing will be found for the many worthwhile a set of priorities that should be followed under investment projects that a healthy, private current conditions in bank lending. In releasing economy always generates. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 16, 1974 1. Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services had changed little in the second quarter, after having declined at an annual rate of 6.3 per cent in the first quarter, and that the increase in the GNP implicit deflator had not been quite so large as in the first quarter. No significant forces of economic expansion appeared to be emerging, and staff projections suggested that in the second half of the year real economic activity would grow at a minimal pace and that prices would increase less rapidly than in the first half. In June industrial production was unchanged, after having advanced moderately in the preceding 2 months; for the second quarter as a whole, the level of output was essentially the same as that in the first quarter. Total nonfarm payroll employment edged down in June, following 2 months of substantial gains, and the unemployment rate remained at 5.2 per cent. According to the advance report, the dollar volume of retail sales had declined in June; the gain in sales from the first to the second quarter appeared to be little if any greater than the rise in average retail prices. Wholesale prices of farm and food products dropped substantially in June for the fourth consecutive month. However, wholesale prices of industrial commodities continued upward at a fast pace, reflecting further large increases for most commodity groups. The advance in the index of average hourly earnings of production workers on nonfarm payrolls remained rapid in June, and the increase for the second quarter as a whole was much larger than that in the first quarter. In May the rise in the consumer price index had accelerated again to about the rate in the first quarter, reflecting in part an appreciable rise in retail prices of foods following a small decline in April. The latest staff projections suggested that real economic activity would grow somewhat less in the second half of the year than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 713 had been anticipated 4 weeks earlier, in large part because an upturn in residential construction was no longer expected and a somewhat greater decline in net exports now appeared in prospect. Moreover, the projected rise in consumption expenditures had been scaled down slightly further. It was still anticipated that business fixed investment would expand moderately and that State and local government purchases of goods and services would continue to grow at a substantial rate. In recent weeks the exchange rate for the dollar against leading foreign currencies had appreciated somewhat further to a level significantly above the low reached in mid-May after SVz months of decline. The U.S. balance of payments on the ofl5cial settlements basis was in substantial deficit in June, but the deficit reflected a large increase in investments in the United States by oil-producing countries rather than purchases of dollars by foreign monetary authorities for exchange-market intervention purposes. In May the U.S. merchandise trade deficit had increased sharply, as exports had dropped while imports had continued to expand. Growth in loans and investments at U.S. commercial banks continued to moderate in June, reflecting for the most part a further slowing in business loan growth; banks enlarged their holdings of Federal agency and other securities. In late June and early July, however, outstanding business loans at banks expanded considerably, as some credit demands were diverted from the commercial paper and capital markets in response to sharp deterioration in conditions in those markets and to increases in market interest rates relative to effective rates on bank loans. The prime rate applicable to large corporations was raised by most banks in two steps from 111/2 to 12 per cent. The narrowly defined money stock (M^Y grew somewhat more rapidly in June than in May, but a major part of the step-up was attributable to a temporary increase in foreign official deposits arising from payments to oil exporters. Net inflows to banks of time and savings deposits other than large-denomination CD's rose sharply. Banks again added a substantial amount to their outstanding volume of large-denomination CD's, but the addition was far below that for April or May. During the second quarter Mi grew ^Private demand deposits plus currency in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN • OCTOBER 1974 at an annual rate of 6.7 per cent, compared with 7.1 per cent in the first quarter, while the more broadly defined money stock grew at a rate of 7.7 per cent, down from 10 per cent in the first quarter.^ Net deposit inflows at nonbank thrift institutions—which had been weak in April and May—strengthened in June, although deposit experience deteriorated late in the month. Growth in the measure of the money stock that includes such deposits (Mg)^ also picked up in June; over the second quarter, however, M3 grew at an annual rate of about 6.6 per cent, compared with 9.4 per cent in the first quarter. Contract interest rates on conventional mortgages and yields in the secondary market for Federally insured mortgages rose further from early June to early July. The Treasury was expected to announce on July 31 the terms of its mid-August refunding. Of the maturing issues, $4.3 billion were held by the public. System open market operations immediately after the June 18 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 statement week ending June 26 the Federal funds rate edged up to an average of about 12 per cent, compared with 11% per cent in the days before the June meeting. In the statement week ending July 3, however, the Federal funds rate was consistently above 13 per cent and averaged about 13Vi per cent, despite System efforts to bring the rate down into the WA to IIVa 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 plus commercial bank time and savings deposits other than large-denomination CD's. ^Growth rates cited are calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Measures of the money stock subsequently were revised to reflect new benchmark data for deposits at nonmember banks; on the revised basis M^ grew at annual rates of 5.6 and 6.4 per cent in the first and second quarters, respectively. ^Mg 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 715 and to consider whether any Committee actions would be appropriate. On the day of the telephone meeting it appeared that in the June-July period growth in Mi would be within its range of tolerance and that growth in Mg 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 level of the funds rate was a reflection of the 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. In view of the likelihood that the high level of the rate was primarily a consequence of technical factors that might well prove temporary, the Committee concluded that there was no immediate need to press hard to bring the funds rate down within the specified range of tolerance. Subsequent to the telephone meeting the volume of reserves provided through open market operations 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 ISVi per cent. The Manager reported that to bring the weekly average rate down to the 12^4 per cent upper limit of the Committee's range of tolerance probably would be difficult without providing nonborrowed reserves on a very large scale. It now appeared that in the June-July period the growth rates of both Mi and Mg would be somewhat below the upper limits of their ranges of tolerance. A majority of the members of the Committee concurred in a recommendation by the Chairman on July 10 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. Specifically, the members agreed that the Manager be instructed to undertake operations promptly with a view to reducing the funds rate to 13 per cent, on the understanding that the rate would be permitted to decline to the neighborhood of 12 per cent should money market factors work in that direction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN • OCTOBER 1974 The funds rate remained near ISVi per cent until the day of this meeting, when it dropped below llVi per cent. In the 3 weeks ending July 10, member bank borrowings averaged about $2,955 million, down from an average of about $3,155 million in the preceding 4 weeks. Private short-term market interest rates rose substantially in the period between the Committee's meeting on June 18 and this meeting, in response both to the rise in the Federal funds rate and to strong short-term credit demands of business, which were bolstered by the diversion of some demands from the capital market. Yield spreads between high- and lower-quality securities widened further as a result of uneasiness in financial markets. In contrast with private short-term rates. Treasury bill rates declined somewhat, reflecting not only the shift in investor preference toward securities of higher quality, but also a seasonal reduction in market supplies of bills and the persistence of substantial demands from foreign monetary authorities and from small investors. On the day before this meeting the market rate on 3-month Treasury bills was 7.62 per cent, down from 8.17 per cent on the day before the June meeting. Yields on long-term private securities rose substantially in the inter-meeting period, while yields on long-term Government securities increased relatively little. The volume of public offerings of corporate bonds declined somewhat in June, as some scheduled offerings were postponed or canceled and other issues were reduced in size. An unseasonally large volume of corporate offerings appeared in prospect for July. Long-term offerings of State and local government bonds declined slightly from May to June and appeared likely to decline a little further in July. The Committee concluded that the economic situation continued to call for moderate growth in monetary aggregates over the longer run and that, in view of the rapid monetary expansion recently, it would seek to achieve less rapid growth in monetary aggregates over the months ahead. A staff analysis suggested that if growth in Ml were maintained at a rate consistent with the Committee's longer-run objectives for the monetary aggregates, money market conditions would ease somewhat in the period immediately ahead. According to the staff analysis, the tightening in money market conditions that had occurred in recent weeks reflected in part Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 717 uncertainties that caused member banks to attempt to protect their liquidity positions; their willingness to borrow from Federal Reserve Banks was reduced and their willingness to hold excess reserves was increased at given levels of the Federal funds rate. Bank attitudes concerning borrowings and excess reserves appeared to be returning to normal, and that development—along with open market operations directed toward accommodating any lingering increased demands for liquidity—was expected to ease money market pressures. Such easing would probably lead to a more general relaxation of pressures in markets for short- and long-term securities, although any declines in interest rates that might occur were likely to be moderate and short-lived in view of the rate of inflation, continuance of strong credit demands, and the forthcoming Government financings. The analysis suggested that inflows of consumer-type time and savings deposits to banks and to nonbank thrift institutions would continue to be constrained and that rates of growth in both Mg and Ms would decline. The rate of expansion in total bank credit was expected to be reduced substantially. Although credit demands at banks would continue large, in part because of diversions of some demands from the unsettled financial markets, it seemed likely that many banks would find it difficult to expand their outstanding volume of large-denomination CD's and would meet loan demands by curtailing acquisitions of securities. Taking account of the staff analysis, the Committee decided that ranges of tolerance for rates of expansion in the monetary aggregates over the July-August period should be wide enough to accommodate lower rates of growth in the monetary aggregates than were expected at present, in the event that growth appeared to be falling short of present expectations, given the range of tolerance specified for the Federal funds rate. Specifically, for the July-August period the Committee adopted ranges of tolerance of 2 to 6 per cent and 4V2 to 7V2 per cent for the annual rates of growth in Mj and Mg, 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 range of tolerance of 8% to 11% per cent, and they decided that in the period until the next meeting the weekly average Federal funds rate might be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN • OCTOBER 1974 permitted to vary in an orderly fashion from as low as IV/2 per cent to as high as 13 per cent, if necessary, in the course of operations. The members also agreed that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of developments in domestic and international 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 inconsistencies appeared to be developing among the Committee's various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services changed little in the second quarter and that no significant expansive forces appear to be emerging. The over-all rate of price rise, while very large, was not quite so rapid in the second as in the first quarter, but the advance in wage rates accelerated. In June industrial production was unchanged, following 2 months of moderate advance, while nonfarm payroll employment edged down. The unemployment rate remained at 5.2 per cent. Wholesale prices of farm and food products declined substantially further, but increases among industrial commodities continued widespread and extraordinarily large. Since mid-May the dollar has appreciated somewhat against leading foreign currencies. In June there was a large increase in foreign official assets in the United States, mainly reflecting investments by oil-exporting countries. The foreign trade deficit increased sharply in May, as exports declined and imports rose further. Growth in the narrowly defined money stock was somewhat more rapid in June than in May; growth during the second quarter was close to the 7 per cent first-quarter pace. Net inflows of consumertype time deposits at banks and at nonbank thrift institutions increased in June, but deposit experience at the nonbank institutions deteriorated late in the month. Growth in business loans and in total bank credit slowed in June, and banks added much less to their outstanding volume of large-denomination CD's than in April and May. Private market interest rates have risen substantially in recent weeks, and in association with uneasy conditions in financial markets, yield spreads between prime and lower quality issues have widened. Yields on long-term Government securities have increased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 719 relatively little, and those on Treasury bills have declined somewhat. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to resisting inflationary pressures, 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 the forthcoming Treasury refunding and of developments in domestic and international financial markets, the Committee seeks to achieve bank reserve and money market conditions that would moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Black, Clay, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Vote against this action: Mr. Bucher. Absent and not voting: Mr. Brimmer. In dissenting from this action, Mr. Bucher said he favored maintaining a generally restrictive policy stance in order to combat inflation. How^ever, he thought that that longer-run objective would be best served by seeking in the short run to maintain growth in the monetary aggregates at recent rates; in his view, further efforts to moderate monetary growth at this point would involve an unduly high risk of creating economic conditions that would necessitate a marked relaxation of policy. 2. Amendment to authorization for domestic open market operations The Committee amended paragraph 1(b) of the authorization for domestic open market operations to increase the limit on outright holdings of bankers' acceptances from $125 million to $500 million. With this amendment, paragraph 1(b) read as follows: To buy or sell in the open market, from or to acceptance dealers and foreign accounts maintained at the Federal Reserve Bank of New York, on a cash, regular, or deferred delivery basis, for the account of the Federal Reserve Bank of New York at market discount rates, prime bankers' acceptances with maturities of up to 9 months at the time of acceptance that (1) arise out of the current shipment of goods between countries or within the United States, or (2) arise out of the storage within the United States of goods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN • OCTOBER 1974 under contract of sale or expected to move into the channels of trade within a reasonable time and that are secured throughout their life by a warehouse receipt or similar document conveying title to the underlying goods; provided that the aggregate amount of bankers' acceptances held at any one time shall not exceed $500 million. Votes for this action: Messrs. Burns, Hayes, Black, Bucher, Clay, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Votes against this action: None. Absent and not voting: Mr. Brimmer. This action was taken on recommendation of the Account Manager, who reported that recent purchases had brought System holdings of bankers' acceptances close to the $125 million limit. The Manager noted that purchases of acceptances were particularly useful as a supplement to other reserve-supplying techniques under current circumstances, when the volume of Government securities available in the market was often limited, and in the Committee's current policy discussion earlier in this meeting, it had been suggested that the Manager give greater weight to the purchase of bankers' acceptances in the process of supplying reserves. Because the volume of bankers' acceptances outstanding had risen sharply over the past decade, the new limit was less than 5 per cent of outstandings, as the previous limit had been when it was established in 1964. 3. Revision of guidelines for operations in Federal agency issues On recommendation of the Manager, the Committee amended the guidelines for the conduct of operations in securities issued by Federal agencies to delete those previously numbered 4 and 7, and to renumber as 4, 5, and 6 those previously numbered 5, 6, and 8. The guidelines deleted were as follows: 4. System holdings of maturing agency issues will be allowed to run off at maturity. 7. No new issues will be purchased in the secondary market until at least 2 weeks after the issue date. Votes for this action: Messrs. Burns, Hayes, Black, Bucher, Clay, Holland, Kimbrel, Mitchell, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 721 Sheehan, Wallich, and Winn. Votes against this action: None. Absent and not voting; Mr. Brimmer. Initial guidelines for operations in agency issues had been approved on August 21, 1971, with the understanding that they w^ould be subject to review^ and revision as experience v^as gained, and revisions had been made on several subsequent occasions. At this meeting the Committee concurred in the Manager's judgment that experience had demonstrated both the absence of need for the technical restrictions embodied in the two guidelines in question and the advantages of their deletion. With respect to the latter, it was noted that the deletion of guideline 4 would make it possible to avoid the negative impact on reserves that automatically ensued when maturing issues were redeemed, and that the deletion of guideline 7 would increase the availability of agency issues for purchase by the System, since recent issues were the most actively traded in the market. These changes brought System operating practices for agency issues more closely in line with those for Treasury securities. As a result of these changes, the guidelines for operations in agency issues read as follows: 1. System open market operations in Federal agency issues are an integral part of total System open market operations designed to influence bank reserves, money market conditions, and monetary aggregates. 2. System open market operations in Federal agency issues are not designed to support individual sectors of the market or to channel funds into issues of particular agencies. 3. System holdings of agency issues shall be modest relative to holdings of U.S. Government securities, and the amount and timing of System transactions in agency issues shall be determined with due regard for the desirability of avoiding undue market effects. 4. Purchases will be limited to fully taxable issues for which there is an active secondary market. Purchases will also be limited to issues outstanding in amounts of $300 million or over in cases where the obligations have a maturity of 5 years or less at the time of issuance, and to issues outstanding in amounts of $200 million or over in cases where the securities have a maturity of more than 5 years at the time of issuance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN • OCTOBER 1974 5. System holdings of any one issue at any one time will not exceed 20 per cent of the amount of the issue outstanding. Aggregate holdings of the issues of any one agency will not exceed 10 per cent of the amount of outstanding issues of that agency. 6. All outright purchases, sales and holdings of agency issues will be for the System Open Market Account. 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

723 Law Department Statutes, regulations, interpretations, and decisions EXTENSIONS OF CREDIT BY RESERVES OF MEMBER BANKS FEDERAL RESERVE BANKS The Board of Governors has amended its Regu- The Board of Governors has amended its Regu- lation D to remove the present 3 per cent marginal lation A to permit application of a special rate on reserve requirement on those classes of time deemergency credit to member banks in excep- posits and other obligations currently subject to tional circumstances involving only a particular that requirement which on September 5, 1974 have member bank. a remaining maturity of four months or more, or which are issued on or after that date with initial maturities of four months or more. AMENDMENT TO REGULATION A AMENDMENTS TO REGULATION D Effective September 25, 1974, section 201.2(e) is amended to read as follows: 1. Effective September 5, 1974, Sections 204.5(a)(l)(ii) and (2)(ii) are amended to read as SECTION 201.2—GENERAL PRINCIPLES follows: (e) Other credit to member banks SECTION 204.5—RESERVE REQUIREMENTS (1) In the event of unusual or emergency circumstances resulting from national, regional, or (a) Reserve percentages. Pursuant to the prolocal difficulties. Federal Reserve credit beyond visions of section 19 of the Federal Reserve Act that contemplated under section 201.2(c) is avail- and § 204.2(a) and subject to paragraph (c) of this able. section, the Board of Governors of the Federal (2) Federal Reserve credit is also available for Reserve System hereby prescribes the following protracted assistance where there are exceptional reserve balances that each member bank of the circumstances or practices involving only a partic- Federal Reserve System is required to maintain ular member bank. A special rate apart from rates on deposit with the Federal Reserve Bank of its charged for lending to member banks under other district: provisions of this Part may be established by (1) If not in a reserve city—* * * Federal Reserve Banks subject to review and de- (ii) 3 per cent of its other time deposits up to termination by the Board of Governors and applied $5 million, plus 5 per cent of such deposits in to such credit. The special rate may apply to excess of $5 million: Provided, however. That a member banks borrowing for prolonged periods member bank shall maintain a reserve balance (such as for more than eight weeks) and in signifi- equal to 8 per cent of the amount by which the cant amounts (such as when the loan has exceeded daily average amount of time deposits and such on average the amount of the borrowing bank's other obligations of the types hereinafter specified required reserves) because of financial strains aris- exceeds either the daily average amount of such ing from particular circumstances or practices af- obligations outstanding during the computation fecting the individual bank—including sustained period ending May 16, 1973, or $10 million, deposit drains, impaired access to money market whichever is greater, and such 8 per cent reserve funds, or sudden deterioration in loan repayment percentage shall apply only with respect to the performance. In no case should the special loan following types of obligations which on September rate to member banks exceed the rate established 5, 1974, have a remaining maturity of less than for loans to nonmembers under 12 U.S.C. 347(c). 120 days or which are issued on or after that date with initial maturities of less than 120 days: (a) time deposits of $100,000 or more; and (b) time deposits represented by promissory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN • OCTOBER 1974 notes; acknowledgments of advance, due bills, or (f) Deposits as including certain promissory similar obligations issued by a member bank's notes and other obligations. * * * In addition affiliate, as provided in § 204.1(f); and to and notwithstanding the foregoing, the term (c) time deposits represented by bank accep- "deposit" includes any liability or undertaking on tances, as provided in § 204.1(f); and* * * the part of a member bank to sell or deliver (2) If in a reserve city (except as to any bank securities to, or purchase securities for the account located in such a city that is permitted by the Board of, any customer (including other banks), involvof Governors of the Federal Reserve System, pur- ing the receipt of funds by the member bank or suant to § 204.2(a)(2), to maintain the reserves a debit to an account of such customer before the specified in subparagraph (1) of this paragraph— securities are delivered, unless such securities are * * * delivered to or for the account of the purchaser (ii) 3 per cent of its other time deposits up to within three business days from the date of pur- $5 million, plus 5 per cent of such deposits in chase or, thereafter, such liability or undertaking excess of $5 million: Provided, however. That a is fully secured by collateral consisting of one or member bank shall maintain a reserve balance more securities "similar to" and with an aggregate equal to 8 per cent of the amount by which the market value at least equal to that of the securities daily average amount of time depostis and such which are the subject of the member bank's liabilother obligations of the types hereinafter specified ity or undertaking. exceeds either the daily average amount of such obligations outstanding during the computation INTERPRETATION OF REGULATION D period ending May 16, 1973, or $10 million, On September 13, 1974, the Board of Goverwhichever is greater, and such 8 per cent reserve nors approved an amendment to § 204.1(f) of percentage shall apply only with respect to the Regulation D (effective October 14, 1974) to defollowing types of obligations which on September fine as deposits for reserve requirement purposes 5, 1974, have a remaining maturity of less than due bills issued on or after the effective date by 120 days or which are issued on or after that date member banks that are uncollateralized which rewith initial maturities of less than 120 days: main outstanding for more than three business (a) time deposits of $100,000 or more; and days. Since 1966, due bills issued or undertaken (b) time deposits represented by promissory by a member bank principally as a means of notes; acknowledgments of advance, due bills, or obtaining funds to be used in its banking business, similar obligations issued by a member bank's have been defined as deposits under both Regulaaffiliate, as provided in § 204.1(f); and tion D (204.1(f)) and Regulation Q (217.1(f)). (c) time deposits represented by bank accep- This amendment retains the existing deposit tances, as provided in § 204.1(f); and* * * treatment under both Regulations D and Q for due bills issued principally as a means of obtaining The Board of Governors has also amended its funds and provides an additional provision under Regulation D to classify as deposits, and thereby Regulation D to define as deposits due bills that subject to reserve requirements, funds received by remain uncollateralized after three business days. member banks from the issuance of due bills in Such due bills would be subject to demand deposit connection with sales of securities where the sereserve requirements. These amendments define as curities sold are not delivered to or for the account deposits for reserve purposes due bills outstanding of the purchaser within three business days from for more than three business days and which are the time of the purchase and where, for any period not fully secured by securities "similar to" those thereafter such due bills are not fully collateralized that are the subject of the underlying due bill by securities similar to those that the due bill transaction. For purposes of the collateralization represents. requirement, due bills in Treasury securities may 2. Effective October 14, 1974, Section 204.1(f) be secured by appropriate amounts of any other is amended by adding a new sentence at the end marketable Treasury issues (including Federal there of to read as follows: Financing Bank issues) regardless of maturity. SECTION 204.1—DEFINITIONS Due bills in securities of agencies of the Federal Government may be secured by either Treasury or agency issues, also regardless of maturity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 725 The securities used to collateralize due bill AMENDMENT TO REGULATION H transactions may be individually identified and issued against a particular due bill transaction. In Effective September 22, 1974, Section 208.8(e) addition, securities qualified to serve as collateral shall be amended by adding a new subparagraph may be placed in a pool of similarly qualified (4) as follows: securities and all or part of such pool may be used to collateralize a member bank's due bill transac- SECTION 208.8—BANKING PRACTICES tions. In addition to the foregoing requirements, the good faith effort to make (1) timely delivery of the underlying security represented by the due bill (e) Loans by State member banks in identitransaction and (2) full disclosure to customers that fied flood hazard areas. a due bill may be issued in lieu of the security sought to be purchased, are regarded as basic elements of bona fide due bill transactions. Where it is the practice of a member bank not to atteinpt (4) Notice to borrower of special flood hazard. to obtain and deliver the underlying security within After September 21, 1974, each State member a reasonable time from the issuance of the due bank shall as a condition of making, increasing, bill or where customers are not informed of a extending, or renewing any loan secured by imbank's inability to obtain the security sought to proved real estate or a mobile home located or be purchased, such practices indicate that a mem- to be located in an area that has been identified ber bank is utilizing due bill transactions as a by the Secretary of Housing and Urban Developmeans of obtaining funds principally for its bank- ment as an area having special flood hazards, mail ing business and therefore, regardless of outstand- or deliver as soon as feasible but not less than ing collateralization, such transactions are re- 10 days in advance of closing of the transaction garded as a "deposit" under both § 204.1(f) of (or not later than the bank's commitment, if any, Regulation D and 217.1(f) of Regulation Q. For if the period between commitment and closing is example, where a bank issues due bills with short less than 10 days) a written notice to the borrower maturities and where due bills are regularly issued that the property securing the loan is in an area under agreement or understanding to repurchase so identified. In lieu of the notification required and reissue for an additional period, such transac- in this section, a bank may obtain satisfactory tions may be regarded as "deposits" under both written assurances from a seller or lessor that such Regulation D and Regulation Q. seller or lessor has notified the borrower, prior to the execution of any agreement for sale or lease, References to due bills issued by member banks that the property securing the loan is in an area contained in paragraph (e) of the Board's interpreso identified. A bank shall require the borrower, tation issued in 1970 (§ 217.137, 1970 BULLEprior to closing, to provide the bank with a written TIN 38) regarding Federal funds transactions are acknowledgment that the borrower realizes that the superceded by this interpretation. property, securing the loan or upon which a mobile home is or will be located, is in a special flood hazard area. MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM The Board of Governors has amended its RegurNTERPRETATION OF REGULATION Y lation H to require any State member bank as a condition of making, increasing, extending, or From time to time questions have arisen as to renewing any loan secured by improved real estate whether and under what circumstances a bank or a mobile home located or to be located in an holding company engaged in nonbank activities, area that has been identified by the Secretary of directly or indirectly through a subsidiary, pursu- Housing and Urban Development as an area hav- ant to § 4(c)(8) of the Bank Holding Company ing special flood hazards, to provide the purchaser Act of 1956, as amended (12 U.S.C. 1843(c)(8)), or lessee of affected property with written notice of may acquire the assets and hire employees of such designation. another company, without first obtaining Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN • OCTOBER 1974 approval pursuant to § 4(c)(8) and the Board's acquisition of assets, to determine whether such Regulation Y (12 CFR 225.4(b)). acquisitions require prior Board approval. Bank In determining whether Board approval is re- holding companies are encouraged to contact their quired in connection with the acquisition of assets, local Reserve Bank for guidance where doubt it is necessary to determine (a) whether the acqui- exists as to whether such an acquisition is in the sition is made in the ordinary course of business^ ordinary course of business or an acquisition, in or (b) whether it constitutes the acquisition, in whole or in part, of a going concern. whole or in part, of a going concern.^ The following examples illustrate transactions MISCELLANEOUS INTERPRETATION where prior Board approval will generally be re- A question has been raised as to whether a quired: member bank's purchase, without recourse, and 1. The transaction involves the acquisition of at face value, of any mortgage note, or particiall or substantially all of the assets of a company, pation therein, from a mortgage banking subsidior a subsidiary, division, department or office ary of its parent bank holding company at the thereof. inception of the underlying mortgage loan involves 2. The transaction involves the acquisition of a "loan" or "extension of credit" from the memless than "substantially all" of the assets of a ber bank to the affiliate within the meaning of company, or a subsidiary, division, department or section 23A of the Federal Reserve Act (12 U.S.C. office thereof, the operations of which are being 371c). In the given circumstances, the affiliate terminated or substantially discontinued by the originated the mortgage loans at premises other seller, but such asset acquisition is significant in than an office of the member bank and hence was relation to the size of the same line of nonbank not a company furnishing services to or performing activity of the holding company (e.g., consumer services for the holding company or its banking finance, mortgage banking, data processing). For subsidiaries within the meaning of § 4(c)(1)(C) of purposes of this interpretation, an acquisition the Bank Holding Company Act (12 U.S.C. would generally be presumed to be significant if 1843(c)(1)(C)). Loans or extensions of credit to the book value of the nonbank assets being acthe affiliate were therefore not entitled to exempquired exceeds 20 per cent of the book value of tion from the provisions of section 23A by virtue the nonbank assets of the holding company or of subsection (1) of the final paragraph thereof. nonbank subsidiary comprising the same line of Paragraph 4 of section 23A provides that the activity. term "extension of credit" shall be deemed to 3. The transaction involves the acquisition of "include" the discount of promissory notes, bills assets for resale and the sale of such assets is not of exchange, conditional sales contracts, or similar a normal business activity of the acquiring holding paper, whether with or without recourse, excepting company. the acquisition of such paper by a member bank 4. The transaction involves the acquisition of from another bank without recourse. In previously the assets of a company, or a subsidiary, division, interpreting the statutory provision from which this department or office thereof, and a major purpose provision is derived (Section 6 of the Bank Holdof the transaction is to hire some of the seller's ing Company Act of 1956, repealed July 1, 1966), principal employees who are expert, skilled and the Board concluded that "discount" in the conexperienced in the business of the company being text of the statute meant "purchase" and that the acquired. purchase of notes, bills of exchange, conditional In some cases it may be difficult, due to the sales contracts or similar paper from an affiliate wide variety of circumstances involving possible was subject to the prohibitions of the statute. (1958 Federal Reserve BULLETIN 260.) Further, the Board notes that the definition in section 23A is ^Section 225.4(c)(3) of the Board's Regulation Y (12 CFR 225.4(c)(3)) generally prohibits a bank holding company or illustrative rather than exclusive. The Board beits subsidiary engaged in activities pursuant to authority of § lieves that the purposes of section 23 A justify a 4(c)(8) of the Act from being a party to any merger "or broad construction of the definition of "extension acquisition of assets other than in the ordinary course of business" without prior Board approval. of credit" to include certain purchases of obliga- ^In accordance with the provisions of § 4(c)(8) of the Act tions, even though the purchases are not made at and § 225.4(b) of Regulation Y, the acquisition of a going a discount from face value. A bank's financing concern requires prior Board approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 727 of the working capital needs of a mortgage banking BANK HOLDING COMPANIES affiliate may occur through outright purchases of NONBANKING ACTIVITIES OF BANK HOLDING obligations, and the types of abuses with which COMPANIES section 23A is concerned are likewise possible in By notice of proposed rulemaking published in such circumstances, since such transactions be- the Federal Register on May 23, 1973 (38 F.R. tween affiliates could result in an undue risk to 13572), the Board of Governors proposed, in the financial condition of the purchasing bank. connection with applications filed pursuant to § The Board is of the opinion that the purchase 4(c)(8) of the Bank Holding Company Act (12 by a member State bank of a mortgage note, or U.S.C. 1848(c)(8)) and § 225.4(b)(2) of the participation therein, from a mortgage banking af- Board's Regulation Y (12 CFR 225.4(b)(2)), to filiate would involve a loan or extension of credit add to the list of activities that it has determined to the affiliate if the latter had either made, or to be closely related to banking or managing or committed itself to make, the loan or extension controlling banks (§ 225.4(a) of Regulation Y) the of credit evidenced by the note prior to the time following: "Engaging in the underwriting of real when the member bank first obligated itself, by estate mortgage guaranty insurance." An oral commitment or otherwise, to purchase the loan or presentation considering possible rulemaking with a participation therein. However, there would be respect to the proposal was held on January 24 no loan or extension of credit by the member bank and 25, 1974, after notice thereof was published to its mortgage banking affiliate if the member in the Federal Register on October 26, 1973 (38 bank's commitment to purchase the loan, or a F.R. 29650), and revised with respect to the date participation therein, is obtained by the affiliate of the oral presentation on November 28, 1973 within the context of a proposed transaction, or (38 F.R. 32823). series of proposed transactions, in anticipation of The Board has considered all comments rethe affiliate's commitment to make such loan(s), ceived prior to the oral presentation, the record and is based upon the bank's independent evalua- of the oral presentation, and all comments submittion of the credit worthiness of the mortgagor(s). ted in connection with, and subsequent to, the oral In these latter circumstances, the member bank presentation that were received by the Board would be taking advantage of an investment op- through July 31, 1974. After considering all releportunity rather than being impelled by any im- vant aspects of the proposal to add the underwritproper incentive to alleviate working capital needs ing of real estate mortgage guaranty insurance to of the affiliate that are directly attributable to the list of closely related activities, the Board has excessive outstanding commitments. determined not to adopt this activity at the present The Board cautions, however, that it would time. regard a blanket advance commitment by a mem- Mortgage guaranty insurance is essentially a ber State bank to purchase from its mortgage limited guarantee of a mortgage loan.^ The unbanking affiliate a stipulated amount of loans, or derwriting processes of the mortgage insurer are an amount thereof exceeding defined credit lines similar to the mortgage extension process of banks of the affiliate, that bears no reference to specific since both involve analysis of the credit worthiness proposed transactions, as involving an unsound of the borrower and appraisal of the real estate banking practice, unless the commitment is condi- that is pledged as collateral. The underwriting of tioned upon compliance of loans made thereunder mortgage guaranty insurance is principally a credit with the requirements of section 23A. It would determination, similar to those made by banks in not suffice to condition such a commitment upon their regular course of business. Because guaranthe bank's ultimate approval of the credit standing teeing mortgages involves activities that banks of the various mortgagors. That blanket commitment would have the inherent tendency, in the ^Mortgage guaranty insurance typically covers the top 20 or 25 per cent of a mortgage loan. In the event of default context of an affiliate relationship, to cause the by the borrower, the lender acquires title to the property and bank to relax sound credit judgment concerning then submits a claim to the insurer. The insurer then has a the individual loans involved when the affiliate was choice of two options: (1) take title to the property and pay the lender the unpaid principal and interest; or (2) pay the in need of bank financing, thereby resulting in an lender the 20 or 25 per cent insured portion of the loan, with inappropriate risk to the soundness of the bank. the lender retaining title to the property. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN • OCTOBER 1974 frequently perform and requires skills that banks holding company entry into the industry would clearly possess, the Board concludes that this bring increased competition. It is further conactivity is closely related to banking. tended that bank holding companies will bring new Opponents of this proposal cite the possibilities capital into the industry, increase the underwriting of conflicts of interest, structural tying of services, capacity of the industry, and increase the supply and diversion of capital from the banking industry of mortgage guaranty insurance. as adverse effects which could result from bank The Board notes that the present private mortholding company performance of this activity. In gage insurance industry is a relatively young inits notice of proposed rulemaking, the Board dustry which is still developing and which has a proposed restrictions and requirements upon bank limited, and as yet untested, operating history.^ holding company performance of this activity: (1) In addition, the Board believes that these are times the proposed subsidiary may not underwrite mort- when it would be desirable for bank holding comgage guaranty insurance on mortgages originated panies generally to slow their present rate of exby the holding company system; (2) the proposed pansion and to direct their energies principally subsidiary must become an insurer qualified by the toward strong and efficient operations within their Federal Home Loan Mortgage Corporation; (3) the existing modes, rather than toward expansion into bank holding company system may not make de- new activities. This is particularly true with regard mand deposits in, or reduce correspondent service to expansion into a new area such as private charges for, any financial institution as an indirect mortgage insurance involving uncertainties which means of compensating that financial institution for are sufficient in the Board's view to outweigh at utilizing the holding company's proposed un- the present time the public benefits that might be derwriting subsidiary; (4) the name of the expected to result from this proposal. Accordingly, proposed subsidiary may not resemble that of the the Board has concluded that it would not be holding company or any subsidiary bank; and (5) appropriate, at this time, to adopt the underwriting the proposal that, with respect to any proposed of mortgage guaranty insurance as permissible for mortgage guaranty subsidiary, in no event may the bank holding companies. resources of any banking subsidiary of the holding By order of the Board of Governors,^ effective company be used to support such company if it September 9, 1974. encounters financial difficulties. The Board finds that the possible adverse effects could be main- (Signed) THEODORE E. ALLISON, tained at an acceptable level by adoption of these [SEAL] Secretary of the Board proposed restrictions and requirements. Proponents have contended that bank holding ^The oldest company in the industry was founded in 1956, company performance of this activity could be the next oldest companies were founded in 1961. expected to result in some significant benefits to ^Voting for this action: Chairman Burns and Governors the public. For example, it is stated that the private Brimmer, Bucher, and Holland. Voting against: Governors Sheehan and Wallich. Absent and not voting: Vice Chairman mortgage insurance industry is presently charac- Mitchell. Board action was taken while Governor Brimmer terized by a high level of concentration, and bank was a Board member. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF under § 3(a)(1) of the Bank Holding Company Act BANK HOLDING COMPANY ACT (12 U.S.C. 1842(a)(1)) of formation of a bank holding company through acquisition of 80 per DRUMMOND BANCSHARES, INC., cent or more of the voting shares of Bank of DRUMMOND, OKLAHOMA Drummond, Drummond, Oklahoma ("Bank"). Notice of the application, affording opportunity ORDER APPROVING FORMATION OF for interested persons to submit comments and BANK HOLDING COMPANY views, has been given in accordance with § 3(b) Drummond Bancshares, Inc., Drummond, Ok- of the Act. The time for filing comments and views lahoma, has applied for the Board's approval has expired, and the application and all comments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT > 729 received have been considered by the Board in Board, or by the Federal Reserve Bank of Kansas light of the factors set forth in § 3 c) of the Act City pursuant to delegated authority. :12 U.S.C. 1842 c)). By order of the Board of Governors, effective Applicant was recently organized for the pur- September 26, 1974. pose of becoming a bank holding coiripany through Voting for this action: Governors Sheehan, Holland, and the acquisition of Bank. Bank, with deposits of Wallich. Voting against this action: Vice Chairman Mitchell. Absent and not voting: Chairman Burns and Governor Bucher. 4.1 million,^ is the only commercial bank in Drummond and the sixth largest of ten banks in (Signed) THEODORE E. ALLISON, the Enid banking market (approximated by Gar- [SEAL] Secretary of the Board. field County), and controls approximately 2.6 per DISSENTING STATEMENT OF cent of the total commercial bank deposits therein. VICE CHAIRMAN MITCHELL Upon acquisition of Bank, Applicant would control the 326th ranking bank, out of 448 banks, I would deny the application of Drummond in Oklahoma, and .05 of 1 per cent of total Bancshares, Inc., to become a bank holding comdeposits in commercial banks in the State, Since pany through the acquisition of the Bank of the purpose of the proposed transaction is essen- Drummond based on my view that Applicant tially a reorganization to effect a transfer of the would not have the necessary financial flexibility ownership of Bank from individuals to a corpora- to service the debt it would incur as a result of tion owned by the same individuals, , consumma- the proposal without adversely affecting the capital tion of the proposal herein would not eliminate position of the bank to be acquired. existing or potential competition, nor have an Principals of Applicant acquired 72.8 per cent adverse effect on other area banks. of the shares of Bank's stock in October 1973, The financial and managerial resources and fu- through a purchase which resulted in a high preture prospects of Applicant, which are dependent mium to previous shareholders. Upon consummaupon those of Bank, are considered to be satis- tion of the proposed acquisition, Applicant would factory. The projected earnings for Bank provide have capital funds of about $144,000 and liabilities Applicant with the necessary financial flexibility of about $381,000. Applicant has indicated its to service the debt incurred as a result of the intention to use all the dividends received from present proposal as well as to augment Bank's Bank during the 12 year debt retirement period capital if the need arises. Accordingly, financial in order to service the debt. In my opinion, this and managerial considerations are consistent with involves an excessive fixed charge on the earnings approval of the application. As indicated above, of the bank that jeopardizes the maintenance of the proposed acquisition represents a change in the a sound capital position of the bank. Thus, conform of ownership of Bank, and there are no summation of the proposed acquisition could result significant proposed changes in the operation or in adverse effects on Bank's financial structure and services of Bank. Considerations relating to the thereby impair the services it renders to the public. convenience and needs of the community to be For these reasons, I do not regard the proposal served are consistent with approval. It is the as being in the public interest, and I would deny Board's judgment that the acquisition would be the application. in the public interest and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above, pro- LOCUST GROVE BANSHARES vided that the transaction shall not be made (a) INCORPORATED, before the thirtieth calendar day following the LOCUST GROVE, OKLAHOMA effective date of this Order or (b) later than three months after the effective date of this Order unless ORDER APPROVING FORMATION OF BANK such period is extended for good cause by the HOLDING COMPANY Locust Grove Banshares, Incorporated, Locust Grove, Oklahoma, has applied for the Board's approval under § 3(a)(1) of the Bank Holding Company Act (12 U. S. C. 1842(a)( 1)) of formation ^All banking data are as of December 31, 1973. of a bank holding company through acquisition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN • OCTOBER 1974 of 80 per cent of the voting shares of Bank of proposed changes in the operation or services of Locust Grove, Locust Grove, Oklahoma Bank. Considerations relating to the convenience C^Bank"). and needs of the community to be served are Notice of the application, affording opportunity consistent with approval. It is the Board's judgfor interested persons to submit comments and ment that the acquisition would be in the public views, has been given in accordance with § 3(b) interest and that the application should be apof the Act. The time for filing comments and views proved. has expired, and the Board has considered the On the basis of the record, the application is application and all comments received in light of approved for the reasons summarized above. The the factors set forth in § 3(c) of the Act (12 U.S.C. transaction shall not be made (a) before the thir- 1842(c)). tieth calendar day following the effective date of Applicant, a non-operating company with no this Order, or (b) later than three months after the subsidiaries, was organized for the purpose of effective date of this Order, unless such period becoming a bank holding company through the is extended for good cause by the Board, or by acquisition of Bank ($3.1 million in deposits).^ the Federal Reserve Bank of Kansas City pursuant Bank is the only bank in Locust Grove (population to delegated authority. of slightly more than 1,000), located in northeast- By order of the Board of Governors effective ern Oklahoma, and is the fourth largest of five September 12, 1974. banks in Mayes County, the relevant banking Voting for this action: Governors Sheehan, Bucher, Holland, market. Bank controls approximately 7 per cent and Wallich. Voting against this action: Vice Chairman Mitof the total commercial bank deposits in the mar- chell and Governor Brimmer. Absent and not voting: Chairman ket. Upon acquisition of Bank, Applicant would Burns. Board action taken while Governor Brimmer was a Board control the 367th ranking bank in Oklahoma, Member. holding .04 per cent of the total deposits in com- (Signed) THEODORE E. ALLISON, mercial banks in the State. Since the purpose of the proposed transaction is to effect a transfer of [SEAL] Secretary of the Board. the ownership of Bank from individuals to corporate ownership with no change in Bank's present management or operation, consummation of the DISSENTING STATEMENT OF proposal herein would not eliminate existing or GOVERNORS MITCHELL AND BRIMMER potential competition, nor have an adverse effect We would deny this application for the reason on other area banks. that v^e believe it is not in the public interest to A principal of Applicant is also a shareholder, sanction an arrangement whereby owners of 80 officer, and/or director in two other banks: The per cent of the shares of Bank secured a loan to Bank of Chelsea, Chelsea, Oklahoma ($5 million purchase such shares at a preferential rate (5 per in deposits), and First National Bank of Fairlane, cent) on the implicit condition that the lending Fairlane, Oklahoma ($1 million in deposits). Each bank will profit from the transaction by receiving of the banks is located over 40 miles distant from a compensating balance as part of Bank's corre- Bank and each operates in separate and distinct spondent account. Thus, Bank's resources are banking markets from the Mayes County market. being used to subsidize the personal interests of From the facts of record, it is the Board's judgment shareholders owning 80 per cent of Bank. that competitive considerations are consistent with In our view, if bank stock loans are to be made, approval of the application. they should be made on the same basis as stock The financial and managerial resources and fu- collateral loans in general. We are concerned that ture prospects of Applicant, which are dependent such preferential loans could result in conflict of upon those of Bank, are considered to be satis- interest or breach of fiduciary duty on the part of factory. Accordingly, financial and managerial the borrowing officer or director if the reduction considerations are consistent with approval of the in the interest rate is conditioned on the mainteapplication. As indicated above, the proposed ac- nance of correspondent balances with the lending quisition represents a change in the form of own- bank. Accordingly, in our judgment, the Board ership of Bank, and there are no significant should not approve this holding company application and thereby sanction the use of such preferential loans. ^All banking data are as of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT > 731 A further concern of ours, though one which a source of strength for its subsidiary banks, and does not appear to be present in the facts of record that it will examine closely the condition of the involved in this case, is that the making of bank Applicant in each case with this view in mind. stock loans at less than the prevailing interest rate Regarding the present proposal, the Board has may be a means whereby a lending bank, without concern about the financial and managerial rethe necessity of securing prior Board approval, sources of Applicant as reflected in the operation acquires indirect control of the borrowing bank's of the four other one-bank holding companies in shares which are pledged as collateral. which the principals of Applicant are involved. For the foregoing reasons, we would deny the Management policy of these bank holding compaapplication. nies has been to employ acquisition debt liberally in relation to the earnings potential of their sub- WATER TOWER FINANCIAL GROUP, INC., sidiary banks. As a result, the overall condition CHICAGO, ILLINOIS of two of these banks has deteriorated. This consideration reflects unfavorably on the managerial ORDER DENYING FORMATION OF BANK HOLDING resources of Applicant. COMPANY In view of the past record of performance of Water Tower Financial Group, Inc., Chicago, the principals of Applicant in managing these other Illinois, has applied for the Board's approval under one-bank holding companies, the Board is unable § 3(a)(1) of the Bank Holding Company Act (12 to conclude that it would be in the publip interest U.S^.C. 1842(a)(1)) of formation of a bank holding to permit such individuals to form another onecompany through acquisition of 50.625 per cent bank holding company with an initial debt strucor more of the voting shares of Water Tower Trust ture which could result in impairing the financial & Savings Bank, Chicago, Illinois ("Bank"). condition of Bank. This proposal entails a high Notice of the application, affording opportunity level of acquisition debt which Applicant proposes for interested persons to submit comments and to service over a 12 to possibly 15-year period views, has been given in accordance with § 3(b) through Bank dividends (beginning after the first of the Act. The time for filing comments and views four years of operation) averaging approximately has expired, and the Board has considered the 75 per cent of Bank's projected net income. Bank application and all comments received in light of has been in operation five months and has no the factors set forth in § 3(c) of the Act (12 U.S.C. proven record of earnings performance. Thus, it 1842(c)). is by no means clear that Bank's projected earnings Applicant is a nonoperating corporation organ- are reasonable or attainable and, even if realized, ized for the purpose of becoming a bank holding the projected earnings for Bank do not, in the company through the acquisition of Bank, which Board's view, appear to be sufficient to amortize opened for business on April 22, 1974. Bank is the acquisition debt and at the same time provide located in downtown Chicago in the Chicago Applicant with the necessary financial flexibility banking market. The principals of Bank and Ap- to meet any unforeseen financial problems which plicant are also associated with four other Chi- might arise at Bank. cago-area one-bank holding companies which Furthermore, although Applicant's proposed control in the aggregate about $544 million in shareholders have indicated a willingness to prodeposits.^ It appears that the addition of Bank to vide addtional equity in the event the holding this group would not result in any significantly company debt cannot be repaid out of dividends adverse effects on competition in the relevant area from Bank, the Board does not regard the agreedue primarily to Bank's recently opened status, ment, under the circumstances of this case, as the presence of intervening banks, and the size providing adequate financial support for Bank and of the group's holdings relative to the overall its operations. Chicago market. Accordingly, the Board con- The proposed formation represents merely a cludes that competitive considerations are consist- restructuring of the ownership of Bank with no ent with approval of the application. significant changes in Bank's operations or the The Board has indicated on previous occasions services offered to customers. Consequently, conthat it believes a holding company should provide siderations relating to the convenience and needs of the community to be served lend no weight ^All banking data are as of December 31, 1973. toward approval of the application. On the other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN • OCTOBER 1974 hand, as noted above, the servicing requirements banking organization in Florida, controls 13 subof the acquisition debt incurred by Applicant could sidiary banks with aggregate deposits of $445 impair Bank's ability to continue to serve the million, representing 2.2 per cent of the total community as a viable banking organization. deposits in commercial banks in the State. ^ Appli- On the basis of all the circumstances concerning cant's acquisition of both Sebring Bank and Avon this application, the Board concludes that consid- Bank would increase Applicant's shares of erations relating to Applicant's management and States deposits by 0.22 per cent and would not the acquisition debt involved in this proposal result in a significant increase in the concentration present adverse circumstances bearing on the fi- of banking resources in Florida. nancial condition and prospects of Applicant and Sebring Bank (deposits of $26.3 million) and Bank. Such adverse factors are not outweighed by Avon Bank (deposits of $19.7 million) are each any procompetitive effects or by benefits which located in the Sebring banking market, (which is would result in serving the convenience and needs approximated by Highlands County plus the comof the community. Accordingly, it is the Board's munity of Wauchula) and control approximately judgment that approval of the application would 19 and 14 per cent, respectively, of the total not be in the public interest and that the application deposits in commercial banks in the market. Apshould be denied. plicant's subsidiary bank closest to this market is On the basis of the record, the application is located approximately ninety miles away in Fort denied for the reasons summarized above. Pierce, and there is no meaningful existing com- By order of the Board of Governors, effective petition between any of Applicant's banking sub- September 18, 1974. sidiaries and the subject banks; nor does it appear likely that such competition would develop in the Voting for this action: Vice Chairman Mitchell and Gover- future in view of the distances involved and nors Sheehan, Holland, and Wallich. Absent and not voting: Chairman Burns and Governor Bucher. Florida's restrictive branching law. Although Applicant could enter the market de novo, this does (Signed) THEODORE E. ALLISON, not appear to be a significant adverse factor with [SEAL] Secretary of the Board. respect to this Applicant in view of the fact that three applications for new bank charters are pres- FIRST BANCSHARES OF FLORIDA, INC., ently pending. BOCA RATON, FLORIDA There are, on the other hand, further competi- ORDER APPROVING ACQUISITION OF ONE BANK tive considerations involved in the instant propos- AND DENYING ACQUISITION OF ANOTHER BANK als. It appears that consummation of the acquisition of both banks would tend to solidify the First Bancshares of Florida, Inc., Boca Raton, existing level of concentration of banking re- Florida, a bank holding company within the sources within the market and to diminish signifimeaning of the Bank Holding Company Act, has cant possibility of a less concentrated and more applied in two separate applications for the competitive market developing in the future. Board's approval under§ 3(a)(3) of the Act (12 Sebring Bank and Avon Bank are the second and U.S.C. 1842(a)(3)) to acquire 90 percent or more fourth largest, respectivley, of six banking organiof the voting shares of (1) First National Bank zations in the market. The two largest banking of Sebring, Sebring, Florida C'Sebring Bank"), organizations^ in the market control approximately and (2) Avon Citrus Bank, Avon Park, Florida 63 per cent of the total commercial bank deposits C'Avon Bank"). therein. Acquisition of both banks by Applicant Notice of the applications, affording opportunity would result in Applicant becoming the largest for interested persons to submit comments and banking organization in the market, and would views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views 1 All banking data are as of June 30, 1973, and reflect bank has expired. The Board has considered the appliholding company formations and acquisitions approved January cations and all comments received in light of the 31, 1974. factors set forth in § 3(c) of the Act (12 U.S.C. ^Sebring Bank and Avon Bank are affiliated through com- 1842(c)). mon ownership, management, and directors, and are regarded as a single banking organization for purposes of analyzing Applicant, the thirteenth largest commercial concentration levels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 733 eliminate the possibility of the competition that On the basis of the record, the application to would develop in the future if Applicant were acquire Sebring Bank is approved for the reasons permitted to acquire only one of the banks. Other summarized above while the application to acquire considerations reflected in the record tend to favor Avon Bank is denied for the reasons summarized the proposal involving the Sebring Bank over the above. The transaction to acquire Sebring Bank Avon Bank proposal. Thus, approval of the ac- shall not be made (a) before the thirtieth calendar quisition of Sebring Bank and denial of the acqui- day following the effective date of this Order or sition of Avon Bank would not only enable Appli- (b) later than three months after the effective date cant to enter the market and provide increased of this Order unless such period is extended for competition for the other banks in the market, but good cause by the Board or by the Federal Reserve would also preserve a viable entry vehicle for Bank of Atlanta pursuant to delegated authority. another bank holding company not now repre- By order of the Board of Governors, effective sented in the market. In addition, approval of only September 25, 1974. the Sebring Bank application would, in the Approval of the acquisition of First National Bank of Seb- Board's view, enhance competition in the market ring. by eliminating the common ownership of the two Voting for this action: Vice Chairman Mitchell and Goversubject banks. Accordingly, on the basis of the nors Sheehan, Holland, and Wallich. Absent and not voting: Chairman Burns and Governor Bucher. record before it, the Board concludes that compet- Denial of the acquisition of Avon Citrus Bank. itive considerations are consistent with approval Voting for this action: Vice Chairman Mitchell and Goverof the acquisition of Sebring Bank, but consum- nors Sheehan, Holland, and Wallich. Absent and not voting: Chairman Burns and Governor Bucher. mation of the acquisition of Avon Bank by the same bank holding company would have substan- (Signed) THEODORE E. ALLISON, tially adverse effects on competition in the relevant [SEAL] Secretary of the Board. market. The financial and managerial resources and fu- ORDERS UNDER SECTION 4 OF ture prospects of Applicant and its subsidiaries are BANK HOLDING COMPANY ACT regarded as satisfactory; those of Sebring Bank and Avon Bank are regarded as generally satis- CAROLINA BANCORP, INC., factory. Applicant has made a commitment to SANFORD, NORTH CAROLINA increase the capital of the subject banks within six months after approval of the applications. ORDER APPROVING ACQUISITION OF NATIONAL These factors lend some support for approval of FINANCE COMPANY, INC. the application to acquire Sebring Bank but do not Carolina BanCorp, Inc., Sanford, North Carooutweigh the substantially adverse competitive ef- lina, a bank holding company within the meaning fects associated with the concurrent acquisition of of the Bank Holding Company Act, has applied Avon Bank. for the Board's approval, under § 4(c)(8) of the Considerations relating to the convenience and Act and § 225.4(b)(2) of the Board's Regulation needs of the community to be served lend some Y, to acquire all the voting shares of National weight toward approval of the acquisition of Sebr- Finance Company, Inc., Rockingham, North ing Bank in view of Applicant's plans to expand Carolina ("National"), a company that engages banking hours, offer maximum rates on time and in the activities of consumer finance, dealer fisavings deposits, and make available certificates nancing, and acting as sales agent for credit life of deposit. Although Applicant proposes to offer and credit accident and health insurance directly similar services through Avon Bank, these con- related to extensions of credit by National. Such siderations do not, in the Board's view, outweigh activities have been determined by the Board to the substantially adverse competitive effects asso- be closely related to banking (12 CFR 225.4(a)(1) ciated with the acquisition of both banks. Accord- and (9)). ingly, it is the Board's judgment that consumma- Notice of the application, affording opportunity tion of the transaction to acquire Sebring Bank for interested persons to submit comments and is in the public interest and should be approved; views on the public interest factors, has been duly however, consummation of Applicant's concurrent published (39 Federal Register 22649). The time proposal to acquire Avon Bank would not be in for filing comments and views has expired, and the public interest and should be denied. the Board has considered the application and all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN • OCTOBER 1974 comments received in the light of the public inter- ables of approximately $2.4 million.) In view of est factors set forth in § 4(c)(8) of the Act (12 the foregoing, it appears that consummation of the U.S.C. 1843(c)(8)). proposed transaction would not have an adverse Applicant is a recently formed bank holding effect on existing competition in any area of the company and controls one bank, The Carolina State. Moreover, Applicant and National are not Bank, Sanford, North Carolina (''Bank"), which considered to be likely de novo entrants into areas holds deposits of $82 million, representing less served by the other in view of their small size than one per cent of total deposits in commercial in relation to present competitors or other possible banks in the State.^ Bank operates 12 branches entrants, and thus consummation herein would not in five counties (Wake, Harnett, Lee, Moore, and have an adverse effect on future competition. Na- Chatham Counties) throughout North Carolina. tional also acts as agent for the sale of credit life National is a licensed small loan company re- and credit accident and health insurance in congulated by the North Carolina Consumer Finance nection with its extensions of credit. Considering Act;^ it operates 12 loan offices in 10 counties in the size and scope of this insurance business, it the central and eastern portions of the State and does not appear that Applicant's acquisition of has total gross receivables of $3.4 million. It has National would have a significantly adverse effect one subsidiary which holds a small amount of on competion in this product line. dealer originated paper. National also sells credit Affiliation with Applicant would give National life and credit accident and health insurance to its greater flexibility in acquiring funds to lend to its borrowers in connection with its extensions of customers and would permit National to expand credit. its current services. There is no evidence in the By Order of April 11, 1974 (60 Federal Reserve record indicating that consummation of the BULLETIN 385), the Board denied an application proposed transaction would result in any undue by Applicant to acquire shares of National. In that concentration of resources, unfair competition, Order, the Board found that there was significant conflicts of interests, unsound banking practices existing competition between Bank and National^ or other adverse effects on the public interest. in making personal installment loans in two of the Based upon the foregoing and other considfour counties (Lee and Moore) in which both erations reflected in the record, the Board has institutions operated and concluded that the determined, in accordance with the provisions of proposed acquisition of National would have sig- § 4(c)(8), that consummation of this proposal can nificant adverse effects on existing competition in reasonably be expected to produce benefits to the those areas. In order to eliminate these adverse public that outweigh possible adverse effects. Accompetitive effects. Applicant has modified its cordingly, the application is hereby approved. This proposal by applying to acquire all of National's determination is subject to the conditions set forth offices except those three offices located in Lee in § 225.4(c) of Regulation Y and the Board's and Moore Counties. The three offices located authority to require such modification or terminatherein will be divested^ by National prior to its tion of the activities of a holding company or any acquisition by Applicant. (The nine loan offices of its subsidiaries as the Board finds necessary to of National to be acquired have total gross receiv- assure compliance with the provisions and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent evasion thereof. ^All banking and other financial data are as of December 31, 1973, and reflect bank holding company formations and The transaction shall be made not later than acquisitions approved by the Board through August 31, 1974. three months after the effective date of this Order, 2The loan limit for a small loan company in North Carolina unless such period is extended for good cause by has recently been increased from $900 to $1,500. ^The Board has previously determined that consumer finance companies generally compete with commercial banks in the area of small loans to individuals (see Board Order of of National. The Board has received various commitments August 3, 1973, denying acquisition of Public Loan Company from Applicant, National, and the individual shareholders by Bankers Trust New York, 59 Federal Reserve BULLETIN of National to the effect that the new corporation will be 694). Accordingly, in a given situation, the acquisition of a sold to an unrelated third-party as soon as practicable but consumer finance company by a commercial banking organi- in no event later than two years after Applicant's acquisition zation may result in the elimination of existing competition of National, and further, that neither Applicant nor any of its in those geographic markets in which both compete. officers, directors or policy-making employees will control or ''National proposes to transfer the three offices in question exert a controlling influence over the management or policies to a new corporation to be formed by the existing shareholders of these three oflfices. 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LAW DEPARTMENT 735 the Board or by the Federal Reserve Bank of ing, the sale of credit-related insurance and inter- Richmond. national banking. By order of the Board of Governors, effective SDC (total assets of approximately $19 million) September 18, 1974. and its subsidiaries are engaged in mobile home financing and the related activities of servicing Voting for this action: Vice Chairman Mitchell and Goveraccounts, sale of repossessed mobile homes, and nors Sheehan, Holland, and Wallich. Absent and not voting: Chairman Bums and Governor Bucher. sale, as agent, of credit life, credit accident, theft, property damage, rental value and liability insur- (Signed) THEODORE E. ALLISON, ance in connection with the mobile homes financed [SEAL] Secretary of the Board. by SDC. SDC and its wholly-owned subsidiaries have a total of three offices located in Colonie and FIRST MARYLAND BANCORP, Ballston Lake, New York and in Mesa, New BALTIMORE, MARYLAND Mexico, respectively. ORDER APPROVING ACQUISITION OF Applicant engages to some extent in mobile SCHENECTADY DISCOUNT CORPORATION home financing in Maryland, through its lead bank, which is located approximately 300 miles First Maryland Bancorp, Baltimore, Maryland, from SDC's nearest office. Neither Applicant nor a bank holding company within the meaning of SDC derive any significant business from the areas the Bank Holding Company Act, has applied for served by the other. Furthermore, in view of the the Board's approval, under section 4(c)(8) of the distances involved, it does not appear likely that Act and § 225.4(b)(2) of the Board's Regulation any significant competition would develop be- Y, to acquire all of the voting shares of Schenectween the two in the future in the relevant product tady Discount Corporation, Albany, New York line. The Board concludes, therefore, that con- ("SDC"), and its wholly-owned subsidiaries, summation of the proposed acquisition would have companies engaged variously in the activities of no adverse effects on existing or potential compefinancing mobile home sales, servicing SDC's tition. accounts, selling mobile homes repossessed by As discussed above, SDC also engages in the SDC, and acting as agent with respect to the sale sale, as agent, of various types of insurance diof credit-related insurance in connection with the rectly related to extensions of credit, which have mobile homes financed by SDC. Such activities been determined to be permissible activities under have been determined by the Board to be closely § 225.4(a)(9)(ii)(a) and (b) of the Board's Regularelated to banking (12 CFR 225.4(a)(1), (3) and tion Y. In addition, SDC engages in the sale, as (9)). agent of certain types of insurance as a matter of Notice of the application, affording opportunity convenience to the purchaser. This activity has for interested persons to submit comments and been determined to be permissible under § views on the public interest factors, has been duly 225.4(a)(9)(ii)(c) of Regulation Y provided that published (39 Federal Register 13178). The time such sales are not more than 5 per cent of the for filing comments and views has expired, and aggregate insurance premium income of the holdthe Board has considered the application and all ing company system for insurance sold pursuant comments received in the light of the public interto § 225.4(a)(9Kii). In view of the limited nature est factors set forth in section 4(c)(8) of the Act of such insurance activities, the Board finds that (12 U.S.C. 1843(c)). Applicant's acquisition of these activities would Applicant, the third largest banking organization not have any adverse effects on existing or future in Maryland, controls one bank with deposits of competition. approximately $864 million, representing 11.5 per There is no evidence in the record indicating cent of the total deposits in commercial banks in that SDC's acquisition by Applicant would lead the State.^ Applicant's nonbanking subsidiaries are to an undue concentration of resources, conflicts engaged in personal property and equipment leasof interests, unsound banking practices or other adverse effects on the public interest. On the other hand, it is expected that SDC's acquisition by ^All banking data are as of December 31, 1973, and reflect Applicant will increase SDC's access to capital, holding company acquisitions and formations approved through thereby benefiting the public by enabling SDC to July 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN • OCTOBER 1974 make more funds available for mobile home fi- Board action was taken while Governor Brimmer was a Board Member. nancing. In consideration of this application, the Board (Signed) THEODORE E. ALLISON, has examined the convenant not to compete which [SEAL] Secretary of the Board. was executed in connection with the proposed acquisition. The Board finds that in view of the DISSENTING STATEMENT OF duration of this convenant, the provisions con- GOVERNOR BRIMMER tained therein are reasonable as to its scope and I would deny the application of First Maryland geographic area and are consistent with the public Bancorp to acquire Schenectady Discount Corinterest. poration C'SDC"). My decision is based upon the Based upon the foregoing and other considexistence of a covenant not to compete which was erations reflected in the record, the Board has executed by one of the principal officers of SDC determined, in accordance with the provisions of as part of this proposal. The effect of this covenant section 4(c)(8), that consummation of this proposal is to preclude the possibility of the Chairman of can reasonably be expected to produce benefits to the Board of SDC undertaking to provide an alterthe public that outweigh possible adverse effects. native source of mobile home financing in the Accordingly, the application is hereby approved. States of New York or Arizona for a period of This determination is subject to the conditions set one year after his employment with SDC termiforth in section 225.4(c) of Regulation Y and to nates. Such agreements are inherently anticompethe Board's authority to require such modification titive and I find no evidence in the record which or termination of the activities of a holding comdemonstrates that the adverse effects of such covpany or any of its subsidiaries as the Board finds enants are outweighed by reasonably expected necessary to assure compliance with the provisions benefits to the public. For reasons stated more fully and purposes of the Act and the Board's regulain my dissents to the application of Orbanco, Inc., tions and others issued thereunder, or to prevent to acquire Far West Security Company (59 Federal evasion thereof. Reserve BULLETIN 368-369 (1973)), and the ap- By order of the Board of Governors, effective plication of CBT Corporation to acquire General September 6, 1974. Discount Corporation (59 Federal Reserve BUL- Voting for this action: Vice Chairman Mitchell and Gover- LETIN 471 (1973)), I am convinced that such nors Sheehan, Bucher, Holland, and Wallich. Voting against covenants are inherently anticompetitive and this action: Governor Brimmer. Absent and not voting: Chair- should not receive the sanction of the Board. For man Burns. these reasons, I would deny this application. ORDERS NOT PRINTED IN THIS ISSUE During September 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 COMAPNY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Eagle Capital Co., Eagle, Eagle State Bank, Eagle, 9/9/74 39 F. R. 33408 Nebraska Nebraska 9/17/74 Fredonia Bancshares, Inc., State Bank of Fredonia, 9/9/74 39 F. R. 33259 Fredonia, Kansas Fredonia, Kansas 9/16 74 IB& T Corporation, Pocatello, Idaho Bank, Pocatello, 9/6 74 39 F. R. 33260 Idaho Idaho 9/16/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 737 Board action Federal (effective Register Applicant Bank(s) date) citation Long Bancorporation, Des Union-Whitten State Savings 9/18/74 39 F. R. 34716 Moines, Iowa Bank, Union, Iowa 9/27/74 The Mitsui Bank, Ltd., The Mitsui Bank of California, 9/13/74 39 F. R. 34117 Tokyo, Japan Los Angeles, California 9/23/74 Northbrook Bancorp, Inc., Northbrook Trust & Savings 9/18/74 39 F. R. 34606 Northbrook, Illinois Bank, Northbrook, Illinois 9/26/74 Plymouth B ancorporation, First National Bank in Le 9/6 74 39 F. R. 33415 Inc., Le Mars, Iowa Mars, Le Mars, Iowa 9/17/74 Seven V Banco, Inc., Seven Valleys State Bank, 3/29/74 39 F. R. 12388 Callaway, Nebraska Callaway, Nebraska 4/5/74 Valley Bancorporation, Valley Bank, Rexburg, 9/18/74 39 F. R. 34717 Rexburg, Idaho Idaho 9/27/74 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 Associated Bank Corporation, Hawkeye State Bank, Iowa City, 9/16 74 39 F. R. 34116 Iowa City, Iowa Iowa; First Trust & Union 9/23/74 Savings Bank, Sigourney, Iowa; and Kalona Savings Bank, Kalona, Iowa Boatmen's Bancshares, Inc., Baltimore Bank and Trust Co., 9/23/74 39 F. R. 35210 St. Louis, Missouri and North Hills Bank, both 9/30/74 in Kansas City, Missouri Commerce Bancshares, Inc., Mound City Trust Company, 9/10/74 39 F. R. 33741 Kansas City, Missouri Florissant, Missouri 9/19/74 First Alabama Bancshares, Farmers and Marine Bank, 9/10/74 39 F. R. 33408 Inc. Bayou La Batre, Alabama 9/17/74 Phenix National Bank, 9/10/74 39 F. R. 33742 Phenix City, Alabama 9/19/74 First City Bancorporation Southwood Bank, Houston, 9/10/74 39 F. R. 33409 of Texas, Inc., Houston, Texas 9/17/74 Texas Michigan Financial Corpo- First National Bank of 9/16 74 39 F. R. 34117 ration, Marquette, Iron wood. Iron wood, Michigan 9/23/74 Michigan Pacesetter Financial Owosso Savings Bank, Owosso, 9/6/74 39 F. R. 33260 Corporation, Grand Haven, Michigan 9/16 74 Michigan Southeast Banking Corporation, National Bank of Sweetwater, 9/25/74 39 F. R. 36068 Miami, Florida Dade County, Florida 10/7/74 Virginia National Bancshares, Community Bank and Trust Co., 9/13/74 39 F. R. 33834 Inc., Norfolk, Virginia Springfield, Virginia 9/20/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN • OCTOBER 1974 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Applicant Nonhanking Company (effective Register (or activity) date) citation Fidelity American Bancshares, Security Finance Corporation of 9/25/74 39 F. R. 36064 Inc., Lynchburg, Virginia Spartanburg, Spartanburg, 10/7/74 Virginia First International Bancshares, First International Bancshares 9/18/74 39 F. R. 34716 Inc., Dallas, Texas Insurance Company, Dallas, 9/27/74 Texas First National Holding Corp., Tharpe and Brooks, Inc., 9/5/74 39 F. R. 33414 Atlanta, Georgia Atlanta, Georgia 9/17/74 First Union Incorporated, Union Finance Company and 9/23/74 39 F. R. 36066 St. Louis, Missouri Union Agency, Inc., both in 10/7/74 Kansas City, Missouri Fredonia Bancshares, Inc., Beal and Beal, Fredonia, 9/974 39 F. R. 33259 Fredonia, Kansas Kansas 9/16 74 Girard Company, Bala Cynwyd, Girard Leasing Corporation, 9/9/74 39 F. R. 33411 Pennsylvania Philadelphia, Pennsylvania 9/17/74 The Main Corp., Chicago, Health Management Services 9/4/74 39 F. R. 33261 Illinois Corporation, Hillside, Illinois 9/16 74 Tennessee Valley Bancorp, Inc., Tennessee Valley Life Insurance 9/4/74 39 F. R. 32795 Nashville, Tennessee Company, Phoenix, Arizona 9/11/74 ORDERS ISSUED BY FEDERAL RESERVE BANKS During August and September 1974, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK Federal Reserve Effective Register Applicant Bank(s) Bank date citation First Virginia Bancshares People's Bank of Chesapeake, Richmond 9/974 39 F. R. 33743 Corporation, Falls Chesapeake, Virginia 9/19/74 Church, Virginia First Bancgroup-Alabama, Farmers and Merchants Bank, Atlanta 91X111A 39 F. R. 35208 Inc., Mobile, Alabama Foley, Alabama 9/30/74 First Financial Corporation, First Bank of Marco Island, Atlanta 9/19/74 39 F. R. 35209 Tampa, Florida Marco Island, Florida 9I3QI1A Southeast Banking Corpora- The Sebastian River Bank, Atlanta 9/5/74 39 F. R. 33415 tion, Miami, Florida Sebastian, Florida 9/17/74 Peoples Banking Corpora- American Security Bank, Chicago 91X9 PA 39 F. R. 36067 tion, Bay City, Michigan Mount Pleasant, Michigan 10/7/74 Valley Bancorporation, Hartford Exchange Bank, Chicago 9/25/74 39 F. R. 36513 Appleton, Wisconsin Hartford, Wisconsin 10/10/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 739 Board action Federal Reserve (effecti ve Register Applicant Bank(s) Bank date) citation First Community Ban- Peoples B^nk of Miller, Kansas City 8/28/74 39 F. R. 33410 corporation, Joplin, Miller, Missouri 9/17/74 Missouri Texas Commerce Banc- Highland Park State Bank Dallas 9/9/74 39 F. R. 33744 shares, Inc., Houston, San Antonio, Texas 9/19/74 Texas ORDER UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE OR ACQUIRE ASSETS Federal Reserve Effective Register Applicant Bank Bank date citation HBT Bank of Canton, The Harter Bank & Trust Cleveland 8/29/74 39 F. R. 33744 Canton, Ohio Company, Canton, Ohio 9/19/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 Announcements FEDERAL RESERVE SYSTEM BOOK: Federal Deposit Insurance Corporation, and the Federal REVISED EDITION Reserve to work out a satisfactory permanent solution. The merger agreement guarantees that banking service A completely rewritten edition of The Federal will be provided to Franklin's customers and the community through a strong institution. The interest of the Reserve System—Purposes and Functions is )ublic, the Federal Government, the depositors, and the available for distribution. This edition, the sixth, oan customers of Franklin are protected by these arhas attempted to present a concise, updated ac- rangements. The outcome constitutes the only viable count of the responsibilities and operating tech- means for resolving Franklin's difficulties consistent with the public interest. niques of the System in the areas of monetary policy, banking and financial regulation, and international finance. While primarily a handbook of operations, the revision also includes some description of economic relationships, market Earlier this year. Franklin National reported poor structure, and the theoretical underpinnings of operating earnings, and subsequently it reported central banking, so as to provide the general reader substantial losses in its foreign exchange operawith a better understanding of the role of the tions. The management of the holding company Federal Reserve in the Nation's economic and that controlled the bank—the Franklin New York financial system. Corporation—announced on May 10 that it would Copies of the book may be obtained from Pub- recommend passing the regular dividend payment lications Services, Division of Administrative on both common and preferred stock. Services, Board of Governors of the Federal Re- On May 12 the Federal Reserve announced that serve System, Washington, D.C. 20551. The price it would advance funds to Franklin as needed—so is $1.00 per copy; in quantities of 10 or more long as the bank remained solvent and within the sent to one address, 75 cents each. limits of the collateral that could be supplied—if the bank experienced unusual liquidity pressures. Federal Reserve lending to Franklin was substan- FRANKLIN NATIONAL BANK STATEMENT tial thereafter, reaching a maximum of approximately $1.75 billion in early October. On October 8, 1974, Dr. Arthur F. Burns, Chair- Because of the size and complexity of the probman of the Board of Governors of the Federal lem, a period of time was required to work out Reserve System, issued the following statement a permanent, satisfactory solution. Among the concerning Franklin National Bank: options studied by the regulatory authorities was possible continuation of Franklin as an inde- The arrangements announced today represent a resolution of the long-standing difficulties surrounding pendent bank. Merger with another institution Franklin National Bank that is very much in the public emerged as the only acceptable route, however, interest. Depositors, borrowers, and other customers of for continuing the banking services provided by Franklin will be able to continue to do business at the Franklin. Accordingly, Federal Reserve assistance same locations by virtue of the merger agreement. was continued until a merger could be effectuated. Depositors will suffer no loss. Borrowers and other customers will have a full range of banking services The Comptroller, in determining Franklin to be available to them without interruption. The former of- insolvent, designated the FDIC as receiver for fices of Franklin will open for business tomorrow at Franklin. An arrangement worked out with FDIC the usual time as offices of European-American. All of ensures the repayment of all Federal Reserve funds Franklin's depositors will automatically become deposloaned to Franklin. itors of European-American. As receiver for Franklin National, the FDIC The Federal Reserve, as lender of last resort, provided assumed the Federal Reserve loan and has agreed emergency assistance to Franklin beginning last May. to repay it over the next 3 years as collateral By doing so, we kept Franklin's banking services availsupplied by Franklin is liquidated. The FDIC will able, prevented serious adverse consequences in finanact as agent for disposition of the collateral that cial markets both here and abroad, and provided the time necessary for the Comptroller of the Currency, the backed the loan to Franklin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 741 AMENDMENT TO REGULATION A Loans sold are now classified in three categories: ''commercial and industrial" loans are The Board of Governors of the Federal Reserve reported as before, but "all other" loans are now System on September 25, 1974, established a new broken down into "real estate" and "all other." category of "discount" borrowing under which a Banks were asked to report data on both the special discount rate may be applied to member old and the new basis for the last reporting period banks requiring exceptionally large assistance over of the month—August 28. The differences are a prolonged period of time. summarized in the following tabulation (data are The amendment to the Board's regulation govin millions of dollars): erning member bank borrowing states that the special rate would in no case exceed the rate Commercial Real estate established for emergency loans to nonmember and and banks. The basic discount rate is 8 per cent while Item Total industrial all other the rate for emergency loans to nonmember banks Loans sold, old basis ... 5,396 3,033 2,363 is 10 per cent. Sold by banks no longer The purpose of the special rate is to limit any in panel -101 -25 -76 Sold by banks added to rate preference for long-term assistance to an indi- panel 159 75 84 vidual bank when a wide gap exists between the Change in loans sold by banks remaining basic discount rate and money market rates as it in panel -561 -200 -361 does presently. The special rate would also en- Loans sold, new basis .. 4,893 2,883 2,010 courage the borrowing bank to make the necessary adjustments in its operations to permit repayment A large part of the $561 million decline reported of the loan in a reasonable period. by banks included in both the old and the new Under the regulatory amendment, the special series reflects the elimination of loans previously rate will apply to member bank borrowing for misclassified as loans sold; $199 million of comprolonged periods (such as for more than 8 weeks) mercial and industrial loans and $101 million of and in significant amounts (such as when the loan real estate and other loans had been so misclassihas exceeded on average the amount of the borfied. Because back data are unavailable, and in rowing bank's required reserves). order to maintain continuity within the old series, The Board of Governors approved actions to this misclassification has been corrected in the new establish the special discount rate taken by the series but not in the old. directors of the Federal Reserve Banks of New York and Dallas on September 26, the Reserve Banks of Philadelphia, Richmond, and St. Louis DATA SERIES ON FOREIGN-OWNED U.S. BANKS on October 2, the Reserve Banks of Cleveland, Minneapolis, Kansas City, and San Francisco on Aggregate data on assets and liabilities of U.S. October 3, the Reserve Banks of Boston and banking institutions owned by foreign banks are Chicago on October 10, and the Reserve Bank of now available for the period November 1972 Atlanta on October 11. through June 1974. Collected by the Federal Reserve System in conjunction with State regulatory authorities, these data may be obtained from the International Banking Section, Division of Inter- REVISED DATA FOR STATISTICAL TABLE national Finance, Board of Governors of the Fed- Beginning with this issue of the BULLETIN, the eral Reserve System, Washington, D.C. 20551. statistical table ''Loans sold outright by commer- Monthly updates of these data will also be furcial banks," page All, reflects a revision in the nished on request. definition of the data reported and in the panel The data, based on monthly reports of condition of banks reporting. The reporting panel is now (Form FR 886a), are contained in three tables. One the same as that for large commercial banks that table presents detailed aggregate data on assets and report weekly. After August 28, banks were asked liabilities of all U.S. banking institutions that are to report only loans sold to a newly defined group majority owned by one or more foreign banks. of afl[iliated institutions; the new group differs from The second table covers only institutions that are the previous affiliate group chiefly in that it ex- subsidiaries of foreign banks. The third table cludes domestic banks. Loans sold to others (that combines figures for agencies and branches of is, to nonaffiliated institutions) are no longer foreign banks and for foreign-owned New York reported. State-chartered investment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN • OCTOBER 1974 These newly available tables contain data that sippi and a Ph.D. in economics from the Univermust be employed with caution owing to divergent sity of Illinois. accounting practices of the reporting institutions Mr. Mead holds B.S. and LL.D. degrees from that have not been fully reconciled. Despite this Georgetown University and was with United Calilimitation the Board of Governors is releasing the fornia Bank prior to joining the Board's staff. Mr. data now because of their interest to the financial Mead has also served with the Federal Deposit community and to the general public. Efforts are Insurance Corporation. being made to improve the consistency of the reporting procedures of the respondent institutions. When adequate consistency is achieved, it is an- WEEKLY STATISTICAL REPORTS: GLOSSARY ticipated that the data will be published regularly The second in a series of publications describing in the BULLETIN. terms used in Federal Reserve statistical reports has been published by the Federal Reserve Bank of New York. The new publication is a 32-page PROPOSED REVISIONS annotated glossary of terms found in the weekly IN CONSUMER CREDIT DATA Condition Report of Large Commercial Banks (H.4.2 and related statistical releases); the Weekly Proposed revisions in the Federal Reserve con- Summary of Banking and Credit Measures (H.9); sumer credit data collection and publication proand the Basic Reserve Position, and Federal Funds gram are discussed in the Consumer Credit Review and Related Transactions of Eight Major Reserve Report prepared by the Board's Division of Re- City Banks in New York City (published by the search and Statistics. Copies of the Report for Federal Reserve Bank of New York each Thurspublic comment are available, on request, from day; similar data is included in the Board's H.5 the Mortgage, Agricultural, and Consumer Fistatistical release). nance Section, Division of Research and Statistics, Board of Governors of the Federal Reserve Sys- The first publication in the series issued in 1972 tem, Washington, D.C. 20551. Comments should provides an explanation of the terms appearing in be submitted to the section by December 31, 1974. the Consolidated Statement of Condition of All Federal Reserve Banks (H.4.1. (a)) and Factors Affecting Bank Reserves (H.4.I.). Both publications are available without charge from the Public CHANGES IN BOARD STAFF Information Department, Federal Reserve Bank of New York, 33 Liberty Street, New York, New The Board of Governors has announced the fol- York 10045. lowing changes in its official staff: Griffith L. Garwood, Adviser in the Legal Division, has been promoted to Assistant Secretary of ADMISSION OF STATE BANKS TO MEMBERSHIP IN the Board, effective October 7, 1974. THE FEDERAL RESERVE SYSTEM James L. Kichline, Assistant Adviser, has been promoted to Adviser in the Division of Research The following banks were admitted to membership and Statistics, effective October 13, 1974. in the Federal Reserve System during the period William H. Wallace has been appointed an September 16, 1974, through October 15, 1974: Assistant Director in the Division of Federal Re- Kansas serve Bank Operations, effective September 15, Lancaster State Bank of Lancaster 1974, and Thomas E. Mead has been appointed Michigan an Assistant Director in that Division, effective Livonia The Detroit Bank—Livonia October 13. Virginia Mr. Wallace was employed by the Federal Re- Augusta County Community Bank and serve Bank of Richmond from 1967 to 1973, and Trust Company of immediately prior to his employment at the Board, Augusta County he was with North Carolina State University. He Henrico County New Bank of Richmond holds an M.B.A. from the University of Missis- Roanoke New Bank of Roanoke Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

743 ndustrial Production Released for publication October 15 Industrial production increased by an estimated 0.3 INDUSTRIAL PRODUCTION per cent in September and at 125.5 per cent of Seasonally adjusted, ratio scale, 1967=100 MATERIALS , the 1967 average was 1.0 per cent below a year earlier. The index declined 0.4 per cent in August. The September increase mainly reflected settle- tP^l RP-RODI JCTS, TOTA L ments of work stoppages in electrical machinery, 1 nonferrous metals, and mining. - CO.SUM. Auto assemblies declined 2.5 per cent and were at an annual rate of 7.7 million units, as strikes i ! BUSINESS continued in the parts supplying industries. Output of other durable consumer goods, mainly appli- -f 1 i i 1968 1970 1972 1974 ances and furniture, and nondurable consumer goods also declined. Production of business equipment rose 0.6 per cent from the reduced August level because of settlement of a work stoppage, and output of defense and space equipment increased further. Output of construction products declined again. Production of durable goods materials rose 1.3 per cent as output of copper mining and fabricating recovered from strikes. Among nondurable goods materials, production of industrial fuel and power rose 2.7 per cent, mainly because of recovery in coal. Output of the textile, paper, and chemical group was further reduced. F.R. indexes, seasonally adjusted. Latest figures: September. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate Industrial production 1974 1973 1974 MMoonntthh YYeeaarr aaggoo aaggoo July^ Aug.^ Sept. ^ Q4 Q2 Q3 Total 125.6 125.1 125.5 .3 -1.0 -6.6 1.9 -.3 Products, total 124.1 123.0 122.7 -.2 -1.3 -5.8 2.6 -.6 Final products 123.0 121.7 121.5 -.2 -.7 -6.5 3.0 .7 Consumer goods 130.1 129.4 128.4 -.8 -2.9 -11.5 2.5 -.6 Durable goods 132.0 130.4 128.0 -1.8 -7.4 -26.6 14.7 -7.0 Nondurable goods 129.3 129.0 128.5 ~A -1.2 -5.2 -2.2 1.6 Business equipment . 131.2 128.0 128.8 .6 2.4 .6 7.2 -.6 Intermediate products .. 128.0 128.1 127.5 -.5 -2.7 -4.6 1.2 -.4 Construction products 128.2 127.5 127.0 -.4 -5.9 -5.1 -2.7 -8.6 Materials 128.0 128.7 129.8 .9 -1.1 -6.4 -.3 -.3 '•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 Member bank reserves, Federal Reserve Bank credit, and related items A 7 Federal funds—Major reserve city banks A 8 Reserve Bank interest rates A 9 Reserve requirements A 10 Maximum interest rates; margin requirements A 11 Open market account A 12 Federal Reserve Banks A 13 Bank debits A 14 Money stock A 15 Bank reserves; bank credit A 16 Commercial banks, by classes A 20 Weekly reporting banks A 25 Business loans of banks A 26 Demand deposit ownership A 27 Loan sales by banks A 27 Open market paper A 28 Interest rates A 31 Security markets A 32 Stock market credit A 32 Savings institutions A 34 Federal finance A 36 U.S. Government securities A 39 Federally sponsored credit agencies A 40 Security issues A 43 Business finance A 44 Real estate credit A 47 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 FEDERAL RESERVE BULLETIN • OCTOBER 1974 U.S. STATISTICS—Continued A 50 Industrial production A 52 Business activity A 52 Construction A 54 Labor force, employment, and unemployment A 55 Consumer prices A 55 Wholesale prices A 56 National product and income A 58 Flow of funds (annual flows through H1 1974; assets and liabilities through 1973) INTERNATIONAL STATISTICS: A 60 U.S. balance of payments A 61 Foreign trade A 61 U.S. reserve assets A 62 U.S. gold transactions A 63 International capital transactions of the United States A 76 Open market rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governments A 87 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted for seasonal variation c Corrected IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities S Sources of funds I, II, III, IV Quarters U Uses of funds * Amounts insignificant in terms of the parn.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as 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 bethat 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 characissues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue 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 and liabilities: 1962-73 Oct. 1974 A-59.14—A-59.28 Banking offices: Analysis of changes in number Aug. 1974 A-79 On, and not on, Federal Reserve Flows: Par List, number Aug. 1974 A-80 1965-73 Oct. 1974 A-58—A-59.13 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 Operating ratios Sept. 1974 A-80—A-85 Banking and monetary statistics: 1973 Mar. 1974 A-96—A-109 July 1974 A-80—A-82 Stock market credit Jan. 1974 A-96—A-97 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1974 A-106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS • OCTOBER 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND REUTED ITEMS (In mUlions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securities i Special ury u H n e d l e d r Loans Float 2 O F t . h R e . r Total * s G to o c ld k c D e R r r a t i i g f w i h c i t a n s t g e re c o n u u c r t - y - Bought repur- assets 3 account stand- Total out- chase ing right agreement 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—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—De c 61,688 61,310 378 ^ 321 3,570 1,032 66,708 11,105 400 7,145 1971—De c 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—Sep t 76,073 75,712 361 1,861 '•2,925 889 81,810 10,410 400 8,584 Oct 78,042 77,500 542 1,465 •'2,936 1,122 83,644 10,933 400 8,613 Nov 78,457 77,937 520 1,399 >•2,764 1.078 83,756 11,567 400 8,642 Dec 79,701 78,833 868 1,298 3,414 1.079 85,642 11,567 400 8,668 1974—Ja n 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 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 3,351 1,983 1,258 91,367 11,567 400 8,951 Sept.® 84,384 84,049 335 3,288 2,237 1,349 91,616 11,567 400 8,992 Week ending— 1974—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 3,041 2,018 1,425 90,286 11,567 400 8,953 21 85,394 84,720 674 3,437 1,940 914 91,998 11,567 400 8,955 28 85,176 84,046 530 3,533 1,845 1.145 92,086 11,567 400 8,961 Sept. 4 85,304 85,061 243 3,906 1,778 f,237 92.539 11,567 400 8.973 IIP 83,126 83,126 3,085 2,770 1,290 90.540 11,567 400 8,971 I8P 83,791 83,222 569 2,921 2,560 1,323 90,901 11,567 400 8.974 25P 84,982 84,616 366 3,531 2,198 1,413 92,513 11,567 400 9,016 End of month 1974—July 81,688 8 81,688 3,589 2,631 1,684 89,810 11,567 400 8,965 Aug 84,951 8 84,951 4,320 1,522 1,268 92,338 11,567 400 9,017 Sept.p 85,046 8 85,046 2,920 1,473 1,481 91,424 11,567 400 9,038 Wednesday 1974—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 8 82,121 2,889 2,660 1,560 89,445 11,567 400 8,949 14 83,803 8 83,803 2,920 2,355 1,540 90,833 11,567 400 8,954 21 85,816 9 85,050 766 3,113 2,455 1,118 92,817 11,567 400 8,959 28 81,523 9 80,996 527 3,433 2,139 1,112 88,615 11,567 400 8,964 Sept. 4 86,841 9 85,136 1,705 3,207 1,943 1,238 93,764 11,567 400 8,969 IIP 82,760 9 82,760 2,454 2,870 1,406 89,753 11,567 400 8,974 18P 82,185 9 82,185 3,122 3,433 1,334 90,349 11,567 400 8,974 25P 84,887 9 84,181 706 5,192 2,517 1,403 94,489 11,567 400 9,032 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. 1,1966, and Federal agency issues bought outright as of Sept. 29, on Wed. and end-of-month dates, see table on F.R. Banks on p. A-12. 1971. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- BULLETIN, p. 164. owned banking institutions held with member banks and redeposited in > Beginning Apr. 16, 1969, *'Other F.R. assets*' and "Other F.R. full with Federal Reserve Banks in connection with voluntary participaliabilities and capital*' are shown separately; formerly, they were tion by nonmember institutions in the Federal Reserve System's program netted together and reported as "Other F.R. accounts." of credit restraint. < 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

OCTOBER 1974 • BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors i Te funds Deposits, other than member bank Member bank CCuurr-- reserves, Other reserves Period or date rreennccyy TTrreeaass-- with F.R. Banks Other F.R. iinn uurryy F.R. liacciirr-- ccaasshh ac- bilities cc tt uu iioo llaa nn -- hh iinn oo gg lldd ss -- Tr u e r a y s - F ei o g r n - Other 2,5 counts 3 ca a p n it d a ls B W F a . n i R t k h . s c C o u in r ® - Total? Averages of daily figures 7.609 2.402 616 73 9 248 11,473 11,473 .1939—Dec. 10,985 2.189 592 1,531 292 12,812 12,812 .1941—Dec. 28,452 2.269 625 1,247 493 16,027 16,027 .1945—Dec. 27,806 1.290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .1960—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .1968—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 57,013 427 849 145 735 . 2,265 23,925 5,340 29,265 .1970—Dec. 61.060 453 1.926 290 728 . 2,287 25,653 5,676 31,329 .1971—Dec. 66.060 350 1,449 272 631 . 2,362 24,830 6,095 31,353 .1972—Dec. 68,592 349 792 332 781 2,848 '•27,510 6,402 34,020 . 1973—Sept. 68,909 622 1,718 266 5 752 2,866 '•28,458 6,371 34,913 Oct. 69,927 340 1,772 522 5 689 2,854 '•28,259 "6,382 34,725 Nov. 71,646 323 1,892 406 5 717 2,942 28,352 6,635 35,068 Dec. 70,962 349 2,488 427 5 713 . 2,904 29,396 7,192 36,655 .1974 -Jan. 70,411 342 2,972 293 5 682 2,932 28,574 6,601 35,242 .Feb. 71,081 334 1,803 311 5 699 . 2,998 28,450 6,450 34,966 .Mar. 72,176 308 1,712 328 5 702 2,985 29,469 6,402 35,929 72,876 286 3,000 320 5 699 3,168 29,861 6,600 36,519 .'May 73,749 293 2,015 491 5 691 . 3,187 29,672 6,668 36,390 .June 74,556 275 2,795 296 5 773 3,216 30,514 6,824 37,338 .July 74,709 283 2,633 326 5 831 . 3,240 30,264 6,765 37,029 .Aug. 75,098 303 2,451 456 5 766 . 3,345 30,155 6,917 37,072 . Sept.p Week ending— 74,112 287 2,781 350 5 777 . 3,240 30,459 6,815 37,274 .1974—July 3 74,876 275 2,957 289 5 753 . 3,050 29,820 7,048 36,868 10 74,849 266 2,366 303 5 786 . 3,193 31,122 6,702 37,824 17 74,441 270 2,721 283 5 757 3,271 30,853 6,564 37,417 24 74,081 283 3,214 293 5 785 . 3,390 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 29,890 7,046 36,936 14 74,872 279 2,447 428 5 833 3,262 30,799 6,357 37,156 21 74,613 281 3,191 307 5 779 . 3,390 30,452 6,614 37,066 28 74,979 302 3,107 371 5 802 , 3,502 30,416 6,823 37,239 .Sept. 4 75,399 297 1,858 362 5 732 3,126 29,703 7,066 36,769 75,302 298 1,438 525 5 751 3,255 30,274 6,845 37,119 ISP 74,890 304 3,148 612 5 904 3,450 30,188 6,784 36,972 25P End of Month 74,373 269 3,822 330 5 1,169 3,403 27,376 5,986 34,362 . 1974—July 74,926 287 3,303 372 5 654 3,532 30,247 6,823 37,070 Aug. 74,804 322 3,209 411 5 718 3,685 29,279 7,071 36,350 Sept.P Wednesday 74,749 288 2,590 269 5 637 2,971 30,706 6,815 37,521 .1974—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 30,036 7,046 37,082 14 74,882 294 2,456 303 5 738 3,290 31,780 6,357 38,137 21 74,973 306 2,950 324 5 723 3,429 26,840 6,614 33,454 28 75,416 302 2,785 359 5 777 3,135 31,926 6,823 38,749 .Sept. 4 75,655 302 1,287 305 5 739 3,181 29,225 7,066 36,291 UP 75,254 311 2,503 327 5 758 3,259 28,877 6,845 35,722 Up 74,972 318 3,347 611 5 711 3,477 32,052 6,784 38,836 25P tfPart allowed as reserves Dec. 1, 1959—Nov. 23, 1960; aU 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. Begmning 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 • OCTOBER 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess 1 Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- EExxcceessss Borrowheld! 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 1144 418 96 1 Oil 46 1950—Dec 17,391 16,364 1,027 142 125 58 88 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—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Sep t 34,020 33,775 245 1,861 147 -6 115 24 62 40 712 79 972 Oct 34,913 34,690 223 1,465 126 11 74 1 54 17 589 110 748 Nov 34,725 34,543 182 1,399 84 27 180 -24 28 -20 593 115 598 Dec 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Ja n 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 35,929 35,771 158 1,714 50 19 114 69 41 -58 987 70 572 May'.'.'.'.'. 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 Aug. 37,029 36,851 178 3,351 165 -58 1,464 6 23 78 860 152 1,004 Sept.p 37,072 36,892 180 3,288 139 56 1,662 -28 17 -138 792 89 817 Week ending— 1973—Sept. 5'-. 34,121 33,644 477 2,363 168 201 143 29 117 29 799 106 1,304 12^ 33,525 33,401 124 1,488 145 -46 32 - 5 20 -38 590 101 846 ^9^ 33,860 33,724 136 1,704 139 -4 91 3 15 -40 758 65 840 26 ^ 34,144 34,070 74 2,189 150 -21 217 27 127 -80 855 36 990 1974—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 21 r. 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 June 5.. 36,279 36,054 225 3,054 131 -37 1,210 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. 36,936 36,823 113 3,041 160 20 1,431 8 24 -39 716 124 870 21. 37,156 36,947 209 3,437 167 -32 1,447 -2 23 130 961 113 1,006 28. 37,066 36,920 146 3,533 161 105 1,457 31 21 -98 951 108 1,104 37,239 36,918 321 3,906 152 -66 1,729 40 19 171 1,125 176 1,033 Sept. 4. 36,769 36,632 137 3,085 132 125 1,567 -41 20 -297 765 72 733 2m5 P 3 3 7 6 , , 1 9 1 7 9 2 3 36 7 , , 8 0 8 1 4 0 1 8 0 8 9 2 3 , , 9 5 2 3 1 1 1 1 3 4 4 1 -22 6 0 9 1 1 , , 5 7 1 8 7 2 -152 8 1 1 0 6 -17 9 4 2 8 7 7 4 3 1 80 4 6 8 4 6 7 6 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 Eflfective Apr. 19, 1963, the Board's Regulation A, which governs lendfor 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

OCTOBER 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 ed vt , t r s a e n c s u a r c it t ie io 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 c e v e e - s s s ! 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 a d n te e n e d t r k r s - a l S d u e o r f p i r c lu it s r P e e q r u o E c f e -e n d t ch P a u s r e - s Sales t a w t c T r o t a o i - o n w t n a s a s l - y 2 b c o h P u f a y u n s i r n e e - g t s s b o S e a f a l n l n l i e n k e s s g t d L e o a t a l o e n rs s 3 de f r B i r a n o o o l g w e m r s r - - s ^ lo N a e n t s trans. reserves banks Total—46 banks 1974—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 1,485 179 735 11,176 -11,731 68. 17,730 6,555 5,049 12,682 1,506 2,642 1,078 1,564 -95 421 14,803 -15,318 89.4 20,003 5,200 4,641 15,362 559 4,287 963 3,324 18 33 330 13,238 -13,536 77.9 18,820 5,582 4,986 13,834 596 3,665 919 2,746 25 -1 618 10,478 -11,097 64.9 16,953 6,475 4,843 12,110 1,632 3,184 932 2,252 8 in New York City 25 4,490 -4,466 64.1 6,338 1,848 1,425 4,913 423 1,886 635 1,251 1974—Aug. 7 37 19 5,192 -5,174 72.7 6,381 1,188 1,105 5,276 84 1,784 648 1,136 14 6 4,178 -4,172 58.4 5,379 1,201 1,171 4,209 30 1,446 815 631 21 110 2,119 -3,010 43.4 4,580 1,461 1,173 3,407 289 1,280 806 474 28 Sept. 4 -5 206 3,705 -3,915 55,6 5,158 1.454 1,294 3,864 160 1,403 774 629 123 32 5,237 -5,416 74,4 6,143 906 906 5,237 2,556 762 1,795 is'.'.y/.'. -68 36 4,343 -4,447 63.0 5,503 1,160 1,160 4,343 1,859 697 1,162 25 22 270 3,364 -3,612 51.3 4,819 1.455 1,215 3,604 240 1,494 655 840 38 outside New York City 1974—Aug. 7 83 123 9,1 -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 Sept. 4 184 529 7,471 -7,816 76.8 12,572 5,101 3,755 8,817 1,346 1,239 304 935 11 218 389 9,566 -10,172 99.1 13,860 4,294 3,735 10,125 559 1,731 201 1,530 18 101 295 8,896 -9,089 88.1 13,317 4,422 3,826 9,491 596 1,806 222 1,583 25 -23 349 7,114 -7,485 74.3 12,134 5,021 3,629 8,505 1,392 1,690 278 1,413 5 in City of Chicago 1974—Aug. 7 18 3,703 -3,685 198.3 4,524 821 812 3,712 332 332 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 Sept. 4 60 3,324 -3,263 168.4 4,226 903 903 3,324 330 330 -9 3,852 -3,861 198.6 4,509 656 656 3,853 493 493 is'.'.'.'.'.'. 2 3,554 -3,553 185.3 4,401 847 847 3,554 364 364 16 2,607 -2,591 134.9 3,410 803 803 2,607 340 340 25 33 others 65 123 6,195 -6,254 76.2 9,306 3,111 2,768 6,538 342 950 535 416 1974—Aug. 7 62 205 5,512 -5,655 69.3 9,170 3,658 2,951 6,219 707 980 382 598 2 1 1 4 -1,2 1 2 5 8 0 4 2 5 9 4 5 4 4 , , 7 9 7 1 9 2 - -6 5 , , 4 0 3 8 5 2 6 67 2 . . 5 6 8 8 , , 6 38 3 9 7 3 3 , , 8 4 5 7 8 7 2 2 , . 8 6 1 2 2 1 5 5 , , 8 7 2 6 5 8 1,0 8 4 5 6 7 1,0 8 0 9 6 4 2 3 9 4 2 4 7 5 1 5 4 0 Sept. 2 4 8 123 529 4,148 -4,553 55.2 8,346 4,198 2,852 5,494 1,346 909 304 605 11 -210 389 5,713 -6,311 76.4 9,351 3,638 3,079 6,273 559 1,238 201 1,037 18 100 295 5,341 -5,537 65.9 8,916 3,575 2,979 5,93^ 596 1,442 222 1,219 25 -39 349 4,507 -4,894 60.0 8,724 4,217 2,826 5,899 1,392 1,350 278 1,072 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 ofifsetting. 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 • OCTOBER 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sees. 13 and 13ai Under Sec. 10(b)2 Loans to all others under last par Sec. 13 * Federal Reserve Regular rate Special rate 3 Bank Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 9/30/74 date rate 9/30/74 date rate 9/30/74 date 3 rate 9/30/74 date rate Boston 4/30/74 4/30/74 10 4/30/74 9! New York.... 4/25/74 4/25/74 10 9/27/74 10 4/25/74 9| Philadelphia.. 4/25/74 4/25/74 10 4/25/74 9J aeveland 4/25/74 4/25/74 10 4/25/74 9J Richmond 4/25/74 4/25/74 10 4/25/74 9! Atlanta 4/29/74 4/29/74 10 4/29/74 9! Chicago 4/26/74 4/26/74 10 4/26/74 91 St. Louis 4/26/74 4/26/74 10 4/26/74 91 Minneapolis.. 4/26/74 4/26/74 10 4/26/74 91 Kansas City.. 4/25/74 4/25/74 10 4/25/74 91 Dallas 4/25/74 4/25/74 10 9/27/74 10 4/25/74 91 San Francisco 4/25/74 4/25/74 10 4/25/74 91 1 Discounts of eligible paper and advances secured by such paper or by Board approved action by the Reserve Bank to establish the special dis- U.S. Govt, obligations or any other obligations eligible for F.R. Bank count rate. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank, member banks secured by direct obligations of, or obligations fully 3 Applicable to special advances described in Section 201.2(e)(2) of guaranteed as to principal and interest by, the U.S. Govt, or any Regulation A. The effective date for this rate is the date on which the agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) F.R. Range F.R. Range F.R. Effective Bank Effective (or level)— Bank Effective (or level)— Bank date of date All F.R. of date All F.R. of N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954. 1959—Mar. 6.. 21^-3 1970—Dec. 1.. 16.. 4.. 1955—Apr. 14. May 29.. 11.. May 1 2 5 . . J S u e n p e t. 1 1 1 2 . . . . m-4 1971—Jan. 15 8 . . . . Aug. 4. 18.. 4 19., 12\ 1960—June 3.. 3»/i-4 22.. S N e o p v t . . 2 1 1 9 3 8 3 . . . . S A e u p g t . . 1 1 1 9 4 0 2 . . . . . . . . ''it F Ju e l b y . 2 2 1 1 1 9 3 3 6 9 . . . . . , , 1956—Apr. 13. 1963—July 2 1 6 7 . . . . ' sTj''^ Nov. 11. 20. 19. Aug. 24. 1964—Nov. 24.. 3Vi-4 Dec. 13. 31. 30.. 4 17. 24. 1965—Dec. 6.. 4 -4iA 1957—Aug. 9 13.. 41/2 1973—Jan. 15. Feb. 26. Nov. 15*. 1967—Apr. 7.. 4 -4Vi Mar. 2. Dec. 2 14.. 4 Apr. 23. Nov. 20., M^aa>y 4. 1958—Jan. 22. 27., 4 -4Y, 11. 24. 1968—Mar. 15. 18.. Mar. 7. 22. 41^-5 June 11.. 2 13 1 . . Apr. 19. 15.. 26. July 2.. Apr. 18. Aug. 16. 5y4-5i/i Aug. 14.. May 9. 30. 23.. Aug. 15. Dec. 18. Sep.. U. 20. V 1974—Apr. 25., 30. Oct. 24. 1969—Apr. 4. Nov. 7. In effect Sept. 30, 1974. l970^Nov. 11. 53/4-6 13. 534-6 53/4 16. NOTE.—Rates under Sees. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, ^nd Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Time 3 Net demand 2 (all classes of Net demand 2,4 Time 3 banks) EEEffffffeeeccctttiiivvveee EEffffeeccttiivvee dddaaattteeeiii Reserve city Other Other time ddaattee Other time SSaavv-- 00--22 22--1100 IIOOLL--110000 110000LL440000 OOvveerr SSaavv-- Over Over iinnggss Over 440000 55 iinnggss Over 0-5 5 0-5 5 Ol-5 5 0-5 5 6 In J e a f n fe c 1 t 1963 1166%% 1122 A 1972— N N o o v v . . 9 1 6 8 10 12 17% 83 83 85 iQfifi Tuiv 14 21 44 44 555 1973—July 19 1111100000%%%%% 1111122222%%%%% 111111333333%%%%%% 1111188888 Sept 8 15 666 1967 Mar. 2 333VVViii IIIInnnn eeeeffffffffeeeecccctttt Mar 16 . ... SSSSeeeepppptttt.... 33330000,,,, 1111999977774444........ 8888 1111100000%%%%% 1111122222%%%%% 111111333333%%%%%% 1111188888 3333 3333 5555 1968—Jan. 11, 18... 1177 1122 1969—Apr. 17 iimm nnvvii 1970 Oct 1 55 PPrreesseenntt lleeggaall lliimmiittss:: MMiinniimmuumm MMaaxxiimmuumm NNeett ddeemmaanndd ddeeppoossiittss,, rreesseerrvvee cciittyy bbaannkkss 1100 2222 NNeett ddeemmaanndd ddeeppoossiittss,, ootthheerr bbaannkkss 77 1144 TTiimmee ddeeppoossiittss 33 1100 1 When two dates are shown, the first applies to the change at reserve reserve cities. Any banks having net demand deposits of $400 million or city banks and the second to the change at country banks. For changes less are considered to have the character of business of banks outside of pnor to 1963 see Board's Annual Reports. reserve cities and are permitted to maintain reserves at ratios set for banks 2 (a) Demand deposits subject to reserve requirements are gross de- not in reserve cities. For details, see Regulation D and appropriate supmand deposits minus cash items in process of collection and demand plements and amendments. balances due from domestic banks. 5 Reserve city banks. (b) Requirement schedules are graduated, and each deposit interval 6 Except as noted below, member banks are subject to an 8 per cent applies to that part of the deposits of each bank. marginal reserve requirement against increases in the aggregate of the (c) Since Oct. 16, 1969, member banks have been required under following types of obligations if they have an initial maturity of less than Regulation M to maintain reserves against foreign branch deposits 120 days: (a) outstanding time deposits of $100,000 or more, (b) outstandcomputed on the basis of net balances due from domestic offices to their ing funds obtained by the bank through issuance by a bank's affilate of foreign branches and against foreign branch loans to U.S. residents. obligations subject to the existing reserve requirements on time deposits, Since June 21,1973, loans aggregating $100,000 or less to any U.S. resident and (c) funds from sales of finance bills. The 8 per cent requirement have been excluded from computations, as have total loans of a bank to applies to balances above a specific base, but is not applicable to banks U.S. residents if not exceeding $1 million. Regulation D imposes a similar that have obligations of these types aggregating less than $10 million. reserve requirement on borrowings from foreign banks by domestic offices For the period June 21 through Aug. 29, 1973, (a) included only singleof a member bank. The reserve percentage applicable to each of these maturity time deposits. Previous requirements have been: 8 per cent for classifications is 8 per cent. The requirement was 10 per cent originally, (a) and (b) from June 21 through Oct. 3, 1973, and for (c) from July 12 was increased to 20 per cent on Jan. 7,1971, and was reduced to the current through Oct. 3, 1973; 11 per cent for all three categpries from Oct. 4 8 per cent effective June 21, 1973. Initially certain base amounts were through Dec. 26, 1973; and 8 per cent from Dec. 27, 1973 through Sept. exempted in the computation of the requirements, but effective Mar. 14, 18, 1974. Beginning Sept. 19, 1974, the 8 per cent requirement is applied 1974, the last of these reserve-free bases were eliminated. For details, see to only those obligations in (a), (b), and (c) with initial maturities of less Regulations D and M. than 120 days. For details, see Regulation D and appropriate supple- 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation ments and amendments. club accounts became subject to same requirements as savings deposits. 7 The 16Vi per cent requirement applied for one week, only to former For other notes see 2(b) and 2(c) above. reserve city banks. For other banks, the 13 per cent requirement was 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re- continued in this deposit interval. serve cities, and on the same date requirements for reserves against net 8 See preceding columns for earliest effective date of this rate. demand deposits of member banks were restructured to provide that each member bank will maintain reserves related to the size of its net demand NOTE.—All required reserves were held on deposit with F.R. Banks deposits. The new reserve city designations are as follows: A bank having June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member net demand deposits of more than $400 million is considered to have the banks were allowed to count part of their currency and coin as reserves; character of business of a reserve city bank, and the presence of the head effective Nov. 24, 1960, they were allowed to count all as reserves. For office of such a bank constitutes designation of that place as a reserve further details, see Board's Annual Reports. city. Cities in which there are F.R. Banks or branches are also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • OCTOBER 1974 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type of deposit Type of deposit July 20, Sept. 26, Apr. 19, Jan. 21, July 1, Nov. 1, 1966 1966 1968 1970 1973 1973 Savings deposits 4 4 4 Savings deposits. 5 5 Other time deposits Other time deposits (multiple- and single- Multiple maturity:2 maturity): 30-89 days 4 4 4 444111///iii Less than $100,000: 90 days to 1 year 555 30-89 days 5 5 1 year to 2 years 5 5 5 90 days to 1 year 2 years or more 5^ 1 year to 2^ years Single-maturity: 2Vi years or more Less than $100,000: 4 years or more in minimum denom- 30 days to 1 year 5 ination of $1,000 (3) 71/4 1 year to 2 years 5 5 555555333111444///iii $100,000 or more ((33)) 2 years and over $100,000 or more: 6 3 0 0 - - 8 5 9 9 d da a y y s s ((((3333))) ) 90-179 days 5511^^ 6 b) 1 1 8 y 0 e d a a r y o s r t m o o 1 r e y ear YVa / \ / \ (( (( 33 33 )) )) 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 IVa per cent was imposed on of $100,000 or more have been suspended. Rates that were effective certificates maturing in 4 years or more with minimum denomination Jan. 21, 1970, and the dates when they were suspended are: of $1,000. There is no limitation on the amount of these certificates that banks may issue. 3 60 0 - - 8 5 9 9 d d a a y y s s 6 6 % Vi p p e e r r c c e e n n t t June 24, 1970 NOTE.—Maximum rates that may be paid by member banks are estab- 90-179 days 6% per cent lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 year 7 per cent May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more 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) U U 1937—Nov. 1 1945—Feb. 4., 40 50 1945—Feb. 5 July 50 50 July 5 1946—Jan. 20.. 17050 75 1946--jan. 21 1947—Jan. 100 1947—Feb. 1 1949—Mar. 75 75 1949—Mar. 30 1951—Jan. 16., 50 50 1951—Jan. 17 1953—Feb. 19., 75 75 1953—Feb. 20 1955—Jan. 3. 50 50 1955—Jan. 4 Apr. 60 60 Apr. 23 1958—Jan. 70 70 1958—Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 90 90 1960—July 28 1962—July 70 70 1962—July 10 1963—Nov. 5. 50 50 1963—Nov. 6 1968—Mar. 10. 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 5. 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22. 55 50 55 1972—Nov. 24 1974_jan. 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

OCTOBER 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 i Others within 1 year 2 1-5 years 5-10 years Over 10 years PPeerriioodd Exch., Gross Gross Redemp- Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur- sales tions pur- sales shifts, or pur- sales maturity pur- sales maturity sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions 1970 111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000777777777777777777444444444444444444 555555555555555555,,,,,,,,,,,,,,,,,,222222222222222222111111111111111111444444444444444444 2222222,,,,,,,111111166666660000000 99999999999999 -------3333333,,,,,,,444444488888883333333 888884444488888 5555555,,,,,,,444444433333330000000 222224444499999 -----11111,,,,,888884444455555 9999933333 ------111111000000222222 1971 888888888888888888,,,,,,,,,,,,,,,,,,888888888888888888999999999999999999666666666666666666 333333333333333333,,,,,,,,,,,,,,,,,,666666666666666666444444444444444444222222222222222222 1111111,,,,,,,000000066666664444444 1111111,,,,,,,000000033333336666666 -------6666666,,,,,,,444444466666662222222 11111,,,,,333333333388888 4444444,,,,,,,666666677777772222222 999993333333333 666668888855555 333331111111111 111111555555000000 1972 888888888888888888,,,,,,,,,,,,,,,,,,555555555555555555222222222222222222222222222222222222 666666666666666666,,,,,,,,,,,,,,,,,,444444444444444444666666666666666666777777777777777777 2222222,,,,,,,555555544444445555555 111111122222225555555 2222222,,,,,,,999999933333333333333 777778888899999 -------1111111,,,,,,,444444400000005555555 555553333399999 -----22222,,,,,000009999944444 111116666677777 222222555555000000 1973 111111111111111111555555555555555555,,,,,,,,,,,,,,,,,,555555555555555555111111111111111111777777777777777777 444444444444444444,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888000000000000000000 3333333,,,,,,,444444400000005555555 1111111,,,,,,,333333399999996666666 -------111111144444440000000 555557777799999 -------2222222,,,,,,,000000022222228888888 555550000000000 888889999955555 111112222299999 888888777777 111999777333___AAAuuuggg............ 666666666666666666555555555555555555555555555555555555 999999999999999999444444444444444444555555555555555555 444444455555556666666 333333355555551111111 4444444,,,,,,,333333366666661111111 -------4444444,,,,,,,888888811111112222222 111111000000000000 SSSeeepppttt 444444444444444444888888888888888888000000000000000000 444444444444444444000000000000000000111111111111111111 555555566666664444444 888888833333336666666 -------888888811111113333333 -------22222223333333 OOOcccttt 222222222222222222,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111777777777777777777 111111111111111111555555555555555555333333333333333333 NNNooovvv............ 555555555555555555888888888888888888333333333333333333 444444444444444444888888888888888888999999999999999999 1111111,,,,,,,111111100000001111111 44441111 111,,,555111555 111111111122222222225555555555 666888000 333333331111 --22,,222200 3355 2255 DDDeeeccc............ 111111111111111111,,,,,,,,,,,,,,,,,,999999999999999999111111111111111111999999999999999999 777777777777777777000000000000000000 11111110000000 77775555 333444 111111111111111111116666666666 ---333444 33335555 111999777444———^^^JJJaaannn 111111111111111111,,,,,,,,,,,,,,,,,,333333333333333333444444444444444444000000000000000000 333333333333333333333333333333333333555555555555555555 1111111,,,,,,,444444400000002222222 9999 99999999993333333333 77777777 FFFFFFFFeeeeeeeebbbbbbbb................................ 777777777777777777666666666666666666888888888888888888 333333333333333333999999999999999999111111111111111111 444444411111110000000 668877 33333333330000000000 --992222 220000 3355 MMMMMMMMaaaaaaaarrrrrrrr................................ 666666666666666666666666666666666666444444444444444444 555555555555555555666666666666666666666666666666666666 111111166666665555555 111111111100000000009999999999 5566 2255 111111111111111111,,,,,,,,,,,,,,,,,,222222222222222222333333333333333333777777777777777777 444444444444444444999999999999999999 444444400000007777777 111111111177777777772222222222 MMMMMMMMaaaaaaaayyyyyyyy........''''''''........""""""""........ 777777777777777777333333333333333333777777777777777777 111111111111111111000000000000000000000000000000000000 111111112222 22,,556633 22222222226666666666 --22,,666633 33331111 33338888 110000 JJJJJJJJuuuuuuuunnnnnnnneeeeeeee........................ 666666666666666666111111111111111111444444444444444444 999999999999999999555555555555555555444444444444444444 220044 44448888 33333333334444444444 77778888 11116666 JJJJJJJJuuuuuuuullllllllyyyyyyyy................................ 999999999999999999888888888888888888888888888888888888 222222222222222222111111111111111111111111111111111111 22227777 55555555553333333333 9999 33336666 AAAAAAAAuuuuuuuugggggggg 111111111111111111,,,,,,,,,,,,,,,,,,666666666666666666555555555555555555444444444444444444 888888888888888888555555555555555555111111111111111111 --22,,886677 11,,005577 11,,994400 --113300 Matched Repurchase Federal agency obligations Bankers Total outright i 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- Gross Redemp- Gross pur- Gross pur- redemp- net Out- chase chases sales tions sales c{ chases sales chases tions right agreements -6 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1973—Aug.. 1,006 945 807 9,632 9,632 2,234 2,492 -1,005 20 157 -7 -41 -915 Sept.. 1,316 401 1,400 6,981 6,981 3,309 2,752 72 30 -95 -9 69 7 Oct.. 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 -46 2,440 Nov.. 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 -1,307 Dec.. 2,145 70 10 3,435 3,435 9,523 10,202 1.387 212 84 -126 23 -26 1,386 1974__jan.. 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 -328 Feb.. 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 72 Mar.. 854 566 165 702 702 6,248 5,124 1,247 170 48 "i85 223 1,780 1,409 49 407 8,069 8,498 524 360 48 33 —89 789 May! 944 100 4.586 4,586 9,192 8,648 1.388 201 15 424 16 142 2,155 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 Aug.. 1,654 851 9,060 'ii',285 2,096 2,096 3,028 238 3 59 3,322 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 nd ri o o d f Total s P t o e u rl n in d g s s A c u h s il t l r in ia g n s B fr e a lg n i c a s n C d a o n l a la d r i s a n D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e a n Jap y a e n n e se g N u l e a il t n d h d e e s r r s - f S ra w n is c s s 197 0 257 98 197 1 18 2 197 2 192 164 20 1973—June, July. Aug.. Sept. Oct.. Nov. Dec. 1974—Jan.. Feb.. 32 20 10 Mar. 6 5 6 5 May 63 5 57 June 90 5 84 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN • OCTOBER 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1974 1974 1973 Sept. 25 Sept. 18 Sept. 11 Sept. 4 Aug. 28 Sept. 30 Aug. 31 Sept. 30 Assets Gold certificate account 11,460 11,460 11,460 11,460 11,460 11,460 11,460 10,303 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash 228 217 207 204 224 237 232 314 Loans: Member bank borrowings 5,192 3,122 2,454 3,207 3,433 2,920 4,320 1,558 Other Acceptances: Bought outright 300 275 263 274 275 331177 277 333999 Held under repurchase agreements. 190 261 133 118877 111000666 Federal agency obligations: Bought outright 4,011 3,804 3,804 3,804 3,582 44,,001111 3,820 111,,,555666777 Held under repurchase agreements. 223 401 340 111666888 U.S. Govt, securities: Bought outright: Bills 37,354 35,742 36,317 38,693 34,775 38,219 38,492 333444,,,111000000 Certificates—^Special. Other.. Notes 39,719 39,581 39,581 39,581 39,582 39,719 39,581 37,374 Bonds 3,097 3,058 3,058 3,058 3,057 3,097 3,058 3,428 Total bought outright 11,,22 8800,,117700 1,278,381 1,278,956 11,,228811,,333322 11,,227777,,441144 1 81,035 1,281,131 117744,,990022 Held under repurchase agreements. 448833 11,,330044 118877 11,,226633 Total U.S. Govt, securities. 80,653 78,381 78,956 82,636 77,601 81,035 81,131 76,165 Total loans and securities 90,569 85,582 85,477 90,583 85,364 88,470 89,548 79,603 Cash items in process of collection... p8,163 2^9,528 f8,326 8,667 7,238 3'5,880 6,057 7,486 Bank premises 248 248 246 247 245 248 245 213 Other assets: Denominated in foreign currencies. 242 242 242 230 183 242 220 4 Another 913 844 918 761 684 991 803 757 Total assets. p112,223p 108,521 2^107,276 112,552 105,798 p107,928 108,965 99,080 Liabilities F.R. notes 66,379 66,702 67,083 66,846 66,433 66,219 66,322 60,174 Deposits: Member bank reserves p32,052 f28,877 p29,225 31,926 26,840 2> 29,279 30,247 28,240 U.S. Treasury—General account. 3,347 2,503 1,287 2,785 2,950 3,209 3,303 1,624 Foreign 611 327 305 359 324 411 372 250 Other: All other 3 3711 3 758 3 739 3 777 3 723 3 718 3 654 3 805 Total deposits. p36,721 f32,465 f31,556 35,847 30,837 P33 ,617 34,576 30,919 Deferred availability cash items 5,646 6,095 5,456 6,724 5,099 4,407 4,535 4,966 Other liabilities and accrued dividends. 1,289 1,195 1,233 1,298 1,216 1,407 1,277 968 Total liabilities. 110,035 J' 106,457 p105,328 110,715 103,585 p105,650 106,710 97,027 Capital accounts Capital paid in 886 885 882 880 882 886 881 829 Surplus 844 844 844 844 844 844 844 793 Other capital accounts 458 335 222 113 487 548 530 431 Total liabilities and capital accounts p112,223 108,521 107,276 112,552 105,798 p 107,928 108,965 99,080 Contingent liability on acceptances purchased for foreign correspondents 1,388 1,361 1,304 1,194 1,182 1,459 1,202 548 foreign and international accounts. 30,525 30,924 30,538 30,559 30,464 30,833 30,796 27,355 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank) 71,181 71,229 71,071 70,899 70,813 71,214 70,832 64,939 Collateral held against notes outstanding: 2,360 2,360 2,360 2,360 2,380 2,360 2,380 2,415 U.S. Govt, securities 70,090 69,990 69,790 69,575 69,575 70,115 69,575 64,025 72,450 72,350 72,150 71,935 71,955 72,475 71,955 66,440 1 See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Sept 25 Sept 18 Sept 11 Sept 4 Aug 28 Sept 30 Aug 31 Sept 30 Loans—Total 5,192 3,122 2,454 3,206 3,434 2,920 4,321 1,559 Within 15 days.... 5.160 3,088 2,381 3,084 3,400 2,814 4,226 1,478 16 days to 90 days. 32 34 73 122 34 106 95 81 91 days to 1 year.. Acceptances—Total.. 490 275 263 535 408 504 277 145 Within 15 days.... 201 30 29 287 156 202 20 9 16 days to 90 days. 236 192 186 178 178 253 184 136 91 days to 1 year.. 53 53 48 70 74 49 73 U.S. Government securities—Total. 80,653 78,381 78,956 82,636 77,601 81,035 81,131 76,165 Within 15 daysi 4,820 4,249 5,661 6,387 2,804 3,340 3,058 4,524 16 days to 90 days 19,894 19,242 18,170 20,795 19,343 21,747 20,926 19,845 91 days to 1 year 22,985 22,091 22,326 22,655 22,655 22,794 24,348 18,565 Over 1 year to 5 years 21,089 21,024 21,024 21,024 21,024 21,289 21,024 22,171 Over 5 years to 10 years 9,946 9,893 9,893 9,893 9,893 9,946 9,893 9,358 Over 10 years 1,919 1,882 1,882 1,882 1,882 1,919 1,882 1,702 Federal agency obligations—^Total. 4,234 3,804 3,804 4,205 3,922 4,011 3,820 1,735 Within 15 daysi 248 25 417 371 25 31 168 16 days to 90 days 155 155 180 120 99 155 99 92 91 days to 1 year 577 527 527 491 465 577 513 302 Over 1 year to 5 years 1,894 1,781 1,781 1,848 1,658 1,894 1,848 615 O O v v e e r r 5 1 0 y e y a e r a s r s to 10 years 4 8 8 7 8 2 4 8 6 5 4 2 4 8 6 5 4 2 4 8 6 6 4 5 4 8 6 6 4 5 4 8 8 7 8 2 4 8 6 6 4 5 2 34 1 7 1 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 accounts i Turnover of demand deposits (bilUons of dollars) Period S T M 2 o 3 S t 3 a A l s L N e . a Y d . ing S 6 M o S th A e 's rs 2 T S o N ( M t e a . S x Y l c A 2 . l ) . 3 ' s 2 S o M 2 th S 2 e 6 A r ' s S T M 2 o 3 S t 3 a A l ' s L N e . a Y d . ing S 6 M o S th A e 's rs 2 T S o N ( M t e a . x S Y l c A 2 . l ) . 3 ' s 2 S o M 2 th S 2 e 6 A r ' s 1973—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 60.6 197 ^an. »• . 18,817.7 8,081.0 4.517.1 10,736.8 6,219.6 111.5 270.3 116.2 77.3 62.2 19,813.7 8,896.2 4,582.1 10,917.5 6,335.4 117.9 294.2 119.9 n9.2 ''63.6 ^lar.^ 20,166.9 8.914.4 4,718.0 11,252.5 6,534.6 118.2 292.5 120.8 80.3 64.7 20,062.0 8,637.9 4,747.6 11,424.1 6,676.4 115.4 274.6 119.7 80.2 65.0 M^yi"'. 20.563.5 8,970.1 4,820.8 11.593.4 6,772.6 117.1 275.3 122.3 81.0 65.3 June*". 20,454.9 9.065.7 4,768.0 11.389.1 6.621.2 116.8 279.9 120.0 79.8 •'64.3 JuIy^. 20.900.6 9,140.4 '•4,892.1 11.760.2 6,868.1 119.8 282.1 rm.s 82.7 •-67.0 Aug... 21,492.0 9.240.8 5.173.3 12.251.3 7,078.0 123.5 286.4 132.1 86.4 69.0 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 • OCTOBER 1974 MEASURES OF THE MONEY STOCK an billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Ml A/2 Mt Ml M2 Ml 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—Dec 255.7 525.5 822.8 263.0 530.6 826.2 1973~^ept 265.5 556.8 873.5 264.0 554.4 870.0 Oct 266.6 561.9 880.3 2'66.1 560.1 877.2 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 275.2 585.0 914.6 272.5 584.5 915.3 276.7 588.5 919.9 278.2 592.9 926.1 May!;;;.' 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 280.0 598.9 932.9 279.2 597.8 933.4 Aug 280.6 602.1 936.5 277.2 598.1 932.2 Sept.f... 280.9 603.3 938.6 279.3 600.7 934.8 Week ending— 600.2 1974_Sept. m II 4 P . 2 2 28 8 8 0 0 0 . . . 8 9 6 6 6 6 0 0 0 3 2 3 . . . 2 7 1 2 2 2 7 8 8 8 0 0 . . . 9 4 5 6 6 0 01 2 . . 8 0 280.0 602.1 276.5 597.4 25P 280.8 604.1 278.8 601.2 Oct. 2P NOTE.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD*s of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial Mz: Mi plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see "Revision of the Money Stock Meascommercial banks. ures and Member Bank Deposits" on pp. 81-95 of the Feb. 1974 BULLETIN Mil 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 an 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 deweek Cur- De- thrift Cur- thrift posren- mand insti- ren- insti- its 3 cy de- tu- cy Do- tupos- tions 2 mes- tions 2 its CD'si Other Total Total Mem- tic- CD'si Other Total ber nonmember 1971—Dec.. 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—Dec.. 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—^ept.. 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... 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.. 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.. 63.3 211.9 67.7 309.8 377.5 329.6 62.7 209.8 152.4 54.7 67.0 312.0 379.1 330.8 6.4 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! 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 67..61 June. 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 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.. 65.6 215.1 84.7 321.4 406.1 334.4 65.8 211.4 152.1 56.5 87.4 320.9 408.3 334.2 3.9 SepU 65.9 215.0 86.0 322.4 408.4 335.3 65.9 213.5 153.1 57.3 88.9 321.4 410.3 334.1 5.4 Week ending— 1974—Sept. 4.. 65.7 215.2 85.0 322.2 407.2 65.9 212.5 153.0 56.7 88.4 321.8 410.2 3.3 UP.... 66.0 214.6 85.9 322.1 408.0 66.4 214.1 153.2 58.1 89.0 321.3 410.2 3.8 18P.... 65.9 214.8 85.8 322.5 408.3 66.0 214.9 154.0 57.9 88.2 321.1 409.3 5.6 25P.... 66.0 214.0 86.5 322.2 408.6 65.4 211.1 151.7 56.3 89.2 320.9 410.1 7.0 Oct. 2p.... 65.8 214.9 86.5 323.3 409.8 65.5 213.3 154.1 56.3 89.6 322.4 412.0 6.7 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also NOTE above. mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 requirements 3 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss44 PPPPeeeerrrriiiioooodddd NNNooonnn--- TTToootttaaalll bbbooorrr--- RRReee--- AAAvvvaaaiiilll--- Demand Demand rrrooowwweeeddd qqquuuiiirrreeeddd aaabbbllleee222 TTiimmee TTiimmee TToottaall aanndd U.S. TToottaall aanndd U.S. SS..AA.. NN..SS..AA.. ssaavviinnggss Private Govt. ssaavviinnggss Private Govt. 1970—Dec.. .. 29.19 28.86 28.95 27.10 321.3 178.8 136.1 6.5 325.2 178.1 141.1 6.0 332.9 336.8 1971—Dec.. .. 31.30 31.17 31.12 28.96 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972—Dec.. .. 31.41 30.36 31.13 29.05 402.0 241.4 154.5 6.1 406.8 240.7 160.1 6.1 406.4 411.2 1973—Sept.... 34.17 32.32 33.95 32.39 438.6 277.5 156.2 5.0 437.7 279.0 154.7 4.1 445.9 445.0 Oct 34.94 33.47 34.72 32.84 439.7 277.3 156.4 6.0 439.7 278.8 156.1 4.8 446.5 446.5 Nov.... 34.86 33.46 34.62 32.71 440.4 277.1 157.5 5.8 438.2 276.6 158.3 3.2 447.5 445.3 Dec... . 35.10 33.81 34.80 32.91 442.2 279.0 158.3 4.9 447.5 278.5 164.0 5.0 449.6 454.9 1974 Jan 35.85 34.80 35.69 32.80 446.8 283.2 157.4 6.2 453.0 283.1 163.4 6.5 454.3 460.5 Feb 35.11 33.92 34.92 32.79 447.1 286.1 157.9 3.0 447.1 285.7 156.3 5.1 454.8 454.8 Mar.... 34.95 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 Aug.. .. 37.25 33,91 37.06 35.32 478.5 313.2 160.0 5.3 475.1 315.3 157.0 2.9 489.0 485.7 Sept.f. . 37.28 33.99 37.08 35.31 480.9 315.2 160.1 5.6 479.9 317.2 158.5 4.2 491.0 490.0 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 TTToootttaaalll TTToootttaaalll DDDaaattteee llloooaaannnsss Commercial llloooaaannnsss Commercial aaannnddd and industrial 3 aaannnddd and industrial 3 iiinnnvvveeesssttt--- PPlluuss UU..SS.. iiinnnvvveeesssttt--- PPlluuss UU..SS.. mmmeeennntttsss!!! TToottaall 11 llooaannss Plus TTrreeaass-- OOtthheerr 44 mmmeeennntttsss!!! TToottaall 11 llooaannss Plus TTrreeaass-- OOtthheerr44 ssoolldd22 Total loans uurryy ssoolldd 22 Total loans uurryy sold 2 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. 30f. .. 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. IIP... 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. 27P... 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 29P... 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 311'.... 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... 686.7 496.4 501.3 179.5 182.4 54.7 135.6 682.2 495.4 500.3 177.9 180.8 51.4 135.3 Sept. 25P.... 681.6 494.3 499.2 179.7 182.5 51.7 135.6 681.2 495.3 500.2 179.8 182.6 50.1 135.8 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 decreased 3 Beginning June 30, 1972, commercial and industrial loans were re- by $500 million on the new basis; commercial and industrial loans were duced by about $400 million as a result of loan reclassifications at one decreased by $100 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 a OCTOBER 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets- CCllaassssiiffiiccaattiioonn bbyy Securities Total Interbank 3 Other TToottaall NNuumm-- FFRRSS mmeemmbbeerrsshhiipp Cash lia- Bor- ccaappiittaall bbeerr aanndd FFDDIICC assets 3 bbiilliittiieess row- aacc-- ooff iinnssuurraannccee Total Loans aanndd Total 3 Demand ings ccoouunnttss bbaannkkss U.S. ccaappiittaall De- Treas- Other aacc-- mand Time Times ury 2 ccoouunnttss 44 U.S. Govt. Other Last-Wednesday-of-month series « All commercial banks: 1941_Dec. 31.. 50,746 21,714 21,808 7,225 26.551 79,104 71,283 10, 182 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 U7,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 31.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31.. 516.564 346.930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31.. 598,808 414,696 67,028 117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Sept. 26.. 646,710 466,840 55,080 124,790 100,030 779,730 630,360 27,720 7,190 8,210 228,420 358,820 56,280 55,620 14,102 Oct. 31.. 654,390 471,340 56,010 127,040 111,720 800,760 646,030 32,830 6,820 5,680 241,130 359,570 60,620 56,510 14,134 Nov. 28.. 659,280 475,010 57,770 126,500 104,140 797,180 638,740 30,130 7,010 4,350 238,540 358,710 62,870 56,730 14,163 Dec. 31.. 683,799 494,947 58,277 130,574 118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Jan. 30^. 673,520 484,240 58,730 130,550 103,070 810,500 651,410 31,510 6,620 9,500 233,310 370,470 65,770 58,270 14,180 Feb. 27f.. 679,130 490,180 57,500 131,450 102,230 816,200 650,97(^ 31,320 6,200 6,620 232,930 373,900 67,970 58,560 14,202 Mar. 27^'., 687,670 497,430 57,260 132,980 104,070 827,600 658,49d 31,590 6,490 6,070 235,360 378,980 69,740 59,050 14,236 Apr. 24P.. 694,660 504,560 56,060 134,040 101,770 833,340 665,97(^ 30,870 7,290 5,850 235,460 386,500 67,320 59,590 14,261 May 29f. 697,970 509,780 53,630 134,560 114,585 850,625 678,265 34,070 8,200 5,880 237,265 392,850 69,560 59,870 14,290 June 26P 707,670 519,290 52,340 136,040 105,280 852,600 679,100 30,480 8,860 8,070 237,350 394,340 68,730 60,140 14,338 July 312'. 713,280 525,940 51,680 135,660 106,830 863,770 689,300 32,720 9,530 4,250 242,430 400,370 67,440 60,990 14,368 Aug. 28P. 713,760 527,040 51,440 135,280 99,530 855,880 682,020 29,930 9,820 3,940 234,140 404,190 66,340 60,940 14,384 Sept. 252'. 711,890 526,020 50,110 135,760 106,060 862,530 685,780 29,280 10,450 7,180 234,680 404,190 66,730 61,230 14,384 Members of F.R. System: 1941—Dec. 31.. 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31.. 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31.. 165,619 99,933 49,106 16,579 45,756 216.577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 1971—Dec. 31.. 405.087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37.279 5,727 1972—Dec. 31.. 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—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 56,772 43,618 5,723 Nov. 28.. 507,176 374,148 40,752 92,276 89,652 624,258 491,405 28,522 6,298 3,359 182,931 270,295 58,865 43,759 5,736 Dec. 31.. 528,124 391,032 41,494 95,598 100,098 655,898 526,837 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.. 535,91"^ 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.. 552,823 418,705 35,878 98,240 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,814 5,767 Sept. 25P. 550,837 417,623 34,683 98,531 91,002 679,160 531,195 27,831 9,522 5,782 180,114 307,946 62,171 47,054 5,767 Call date series Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 25,788 76,820 69,41 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31.. 114,274 37,583 67,941 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 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 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 64,691 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 66,679 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—June 30.. 630,379 452,587 57,532 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 Dec. 31.. 678,113 490,527 57,961 116,266 827,081 677,358 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 I960—Dec. 31.. 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 318. 271,760 187.554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31.. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—June 30.. 369,856 270,188 31,651 68,018 61,336 449,772 364,129 16,640 2,874 6,181 137,116 201,318 33,804 31,867 4,629 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 3,636 135,188 225,000 45,627 34,026 4,688 For notes see p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • COMMERCIAL BANKS A 17 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— FF CC RR llaa SS aa ss ii nn nn ss mm ss dd iiff uu ee iicc rr FF mm aa aa DD nn tt bb ii cc oo ee IICC ee nn rr ss hh bb ii yy pp Total Loa 1 n s T U re . S a S e s . c - urit OO ie tt s hh 22 ee rr a C ss a e s t h s 3 c b T a i a l l a o i p i n a t c t i i d - - a e ta l s l Total 3 m D I a n e n t - d e rba TT nk iimm 3 ee Dema O nd th er TTiimm 55 ee r B i o n o g w r s - - cc cc TT aa oo aa oo uu pp cc tt nn ii -- aa tt tt aa ll ss ll N ba b u o n e m f k r s ury counts 4 G U o .S vt . . Other Call date series Insured banks (cont.): State 1 m 94 e 1 m — b D er e : c . 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 1960—Dec. 31.... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 318... 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1971_Dec. 31.... 108,527 67,188 17,058 24,282 12,092 123,970 109,841 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 nbe 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 1,779 2,000 885 500 204 Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 1,836 2,215 1,463 524 207 Total I mbe 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, * 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. ^ 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 • OCTOBER 1974 ASSETS BY CLASS OF BANK, APRIL 24, 1974 (Amounts in millions of dollars) Member banks i Insured Account commercial Large banks Nonbanks member Total AU 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

OCTOBER 1974 • INSURED COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, APRIL 24, 1974 (Amounts in millions of dollars) Member banks 1 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 Accumulated for personal loan payment 2 478 346 '•"259" 49' 62 284 131 Mutual savings banks 509 498 164 25 12 Other individuals, partnerships, and corporations. 197,527 151,586 55,180 62,555 45,941 U.S. Government 459 335 24,183 9,668 118 159 125 S F t o a r t e e i s g n a n g d o v p e o r l n it m ic e a n l t s s u , b c d e i n v t is ra io l n b s a nks, etc 4 8 9 , , 3 01 1 1 1 3 8 6 , , 1 5 6 1 3 5 2,16 3 8 2 1,62 2 3 5 1 2 5 , , 8 4 1 8 9 4 17,24 4 1 2 12,4 1 9 4 6 8 Commercial banks in United States 5,806 5,304 4,437 865 1,137 300 502 Banks in foreign countries 319 280 3,371 496 82 30 39 137 31 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 Reserves for bad debts (IRS) 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 Equity capital 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 Surplus 24,033 18,547 3,466 1,135 6,689 7,258 5,485 Undivided profits 16,376 12,703 2,592 236 3,932 5,944 3,674 Other capital reserves 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 adjusted 3 207,767 153,256 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 U.S. Treasury 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 1:? 59.6 All other assets 4.1 4.5 6.7 4.2 4.8 3.0 Total loans and securities 83.9 82.3 73.7 84.0 82.2 86.1 90.0 R E e q s u e it r y ve c s a f p o i r t a lo l— an T s o a ta n l d securities. 6 1 . . 7 0 6 1 . . 5 0 6 1 . . 9 2 5 1 . . 8 3 5 1. . 0 9 7. . 1 9 7. . 4 8 Total capital accounts 7.2 7.1 7.5 6.0 6.6 7.4 7.8 Number of Banks. 14,043 5,759 13 156 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 • OCTOBER 1974 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.i Other To brokers For purchasing and dealers r carrying securities Total involving— To nonbank loans financial Wednesday and Com- To brokers To invest- To mer- and dealers others ments com- To cial Agri- Total mer- U.S. others Total and culcial Treas- Other indus- tural Pers. banks ury se- trial U.S. U.S. and se- curi- Treas- Other Treas- Other sales curi- ties ury sees. ury sees. finan. Other ties sees. sees. COS., etc. Large banks— Total 1973 Sept. 5 355,015 15,714 13,603 1,487 238 386 259,852 107,012 3,351 1,379 5,074 180 2.946 9,172 17,193 12 358,259 16,825 14,334 2,014 245 232 260,927 107,516 3,342 1,087 5,205 177 2.947 9,150 17,200 19 355,219 14,333 11,758 2,036 238 301 261,451 108,138 3,337 875 5,217 176 2,939 9,245 17,151 26 353,958 12,894 11,619 818 189 268 261,622 108,183 3,327 849 5,474 167 2,944 9,026 17,392 1974 Aug. 7 397,759 16,646 13,558 1,962 437 689 297,465 126,373 3,846 1,451 4,381 111 2,699 10,190 21,745 14 395,339 15,466 13,113 1,229 450 674 296,440 126,479 3,836 1,055 4,277 109 2,682 9,956 21,771 21 393,550 14,686 12,368 1,334 401 583 296,046 126,832 3,854 634 3,786 104 2.675 9,894 21,844 28 397,220 16,525 12,021 3,193 428 883 297,797 126,725 3,827 2,111 3,888 102 2,693 9,852 21,926 Sept. Av 397,557 15,987 13,468 1,446 406 667 298,278 127,422 3,813 567 3,841 97 2.676 10,295 21,880 UP 400,989 17,171 13,932 1,782 669 788 299,858 127,937 3,793 1,958 4,393 93 2,652 10,202 21,961 ISP 399,613 16,473 12,254 2,637 779 803 300,321 128,631 3,764 1,445 4,473 94 2,659 10,187 22,205 25P 395,375 15,419 12,004 1,854 750 811 298,021 128,342 3,737 947 3,838 95 2,644 9,892 21,971 New York City 1973 Sept. 5 75,557 1,992 1,815 46 131 60,588 30,494 1,266 2,987 681 2,818 5,748 12 77,204 1,812 1,768 15 29 61,146 30,787 975 3,065 677 2,831 5,808 19 76,299 1,569 1,515 25 29 60,991 30,866 762 3,195 670 2,838 5,819 26 7^,905 1,742 1,697 16 29 60,959 30,958 728 3,405 679 2,687 5,909 1974 Aug. 7 90,799 2,019 1,903 55 74,148 37,601 140 1,322 2,724 30 563 3,520 8,246 14 89,600 1,730 1,558 57 73,102 37,625 138 909 2,660 29 556 3,430 8,267 21 89,434 1,895 1,649 165 1 72,525 37,682 137 567 2,223 24 557 3,415 8,292 28 91,238 1.894 1,607 208 74,440 37,787 132 2,016 2,414 24 566 3,346 8,372 Sept. 4P 91,376 1,880 1,635 207 1 73,967 38,134 129 492 2,296 24 559 3,557 8,408 i\v 92,745 1,442 1,214 185 7 75,235 38,341 125 1,683 2,829 23 559 3,373 8,478 18P 92,969 1.895 1,711 140 75,411 38,620 123 1,198 3,051 22 556 3,455 8,518 25P 90,898 2,101 1,903 156 73,790 38,608 121 698 2,452 21 550 3,377 8,333 Outside New York City 1973 Sept. 5. 279,458 13,722 11,788 1,441 238 255 199,264 76,518 3,276 113 2,087 139 2,265 6,354 11,445 12. 281,055 15,013 12,566 1,999 245 203 199,781 76,729 3,269 112 2,140 139 2,270 6,319 11,392 19. 278,920 12,764 10,243 2,011 238 272 200,460 77,272 3,264 113 2,022 138 2,269 6,407 11,332 26. 278,053 11,152 9,922 802 189 239 200,663 77,225 3,249 121 2,069 130 2,265 6,339 11,483 1974 Aug. 7. 306,960 14,627 11,655 1,907 437 628 223,317 88,772 3,706 129 1,657 2,136 6,670 13,499 14. 305,739 13,736 11,555 1,172 450 559 223,338 88,854 3,698 146 1,617 2,126 6,526 13,504 2 2 1 8 . . 3 3 0 0 4 5 , , 1 9 1 8 6 2 1 1 2 4 , , 7 6 9 3 1 1 1 1 0 0 , , 7 4 1 1 9 4 2 1 , , 9 1 8 6 5 9 4 42 0 8 0 8 5 0 0 4 3 2 22 2 3 3 , , 3 5 5 2 7 1 8 88 9 , , 9 1 3 5 8 0 3 3 , , 7 6 1 9 7 5 9 6 5 7 1 1 . , 5 4 6 7 3 4 2 2 , , 1 1 1 2 8 7 6 6 , , 4 5 7 0 9 6 1 13 3 , , 5 5 5 5 4 2 Sept. 4P, 306,181 14,107 1,239 405 630 224,311 89,288 3,684 75 1,545 2,117 6,738 13,472 UP. 308,244 15,729 1,597 662 752 224,623 89,596 3,668 275 1.564 2.093 6,829 13,483 ISP. 306,644 14,578 i 2,497 779 759 224,910 90,011 3,641 247 1,422 2,103 6,732 13,687 25P. 304,477 13,318 10,101 1,698 750 769 224,231 89,734 3,616 249 1,386 2.094 6,515 13,638 For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 Certifestate instal- eign other Total Bills icates Do- For- ment govts. 2 Within 1 to After mes- eign lyr. 5 yrs. 5 yrs. tic Large banks— Total 1973 52,199 3,551 4,769 31,614 1,311 20,101 22,918 3,705 3,966 12,635 2,612 52,480 3,639 4,807 31,703 1,324 20,350 23,324 3,981 3,962 12,731 2,650 52,816 3,344 4,726 31,736 1,311 20,440 22,505 3,107 4,070 12,682 2,646 19 53,021 3,305 4,684 31,866 1,255 20,129 22,249 3,036 4,094 12,463 2,656 26 1974 58,886 3,924 6,877 34,419 2,075 20,488 21,284 2,458 3,538 11,519 3,769 59,154 3,968 6,725 34,468 1,875 20,085 21,429 2,545 3,644 11,447 3,793 Aug. 7 59,341 3,808 6,808 34,508 1,895 20,063 20,976 2,119 3,438 11,161 4,258 14 59,428 3,758 6,871 34,651 1,656 20,309 21,130 2,328 3,615 10,900 4,287 21 28 59,437 3,880 6,906 34,727 1,680 21,057 21,268 2,632 3,831 10,709 4,096 Sept. 4P 59,561 3,686 6,857 34,766 1,621 20,378 21,782 3,202 3,819 10,701 4,060 UP 59,693 3,727 6,755 34,824 1,639 20,225 20,876 2,472 3,737 10,636 4,031 ISP 59,771 3,650 6,544 34,917 1,590 20,083 20,068 1,771 3,721 10,610 3,966 25^^ New York City 1973 5,851 1,335 1,981 2,397 668 4,246 3,988 1,184 612 1,719 473 5,921 1,395 2,016 2,399 654 4,507 4,639 1,571 600 1,920 548 5,998 1,242 1,964 2,378 673 4,475 4,166 1,144 636 1,849 537 19 6,061 1,232 1,919 2,399 628 4,239 3,824 943 630 1,721 530 26 1974 7,073 1,581 3,172 2,499 933 4,744 3,823 446 419 1,736 1,222 7,125 1,630 2,993 2,512 870 4,358 4,093 644 473 1,754 1,222 Aug. 7 7,186 1,571 3,078 2,536 860 4,397 4,291 400 402 1,912 1,577 14 7,213 1,586 3,186 2,555 885 4,358 4,264 364 356 1,895 1,649 21 28 7,226 1,766 3,226 2,557 892 4,701 4,788 910 431 1,846 1,601 Sept. 4p 7,239 1,561 3,176 2,572 832 4,444 5,315 1,558 402 1,824 1,531 IIP 7,283 1,604 3,145 2,580 869 4,387 4,591 949 403 1,768 1,471 18P 7,290 1,561 3,042 2,622 863 4,252 4,021 418 418 1,720 1,465 25P outside New York City 1973 46,348 2,216 2,788 29,217 643 15,855 18,930 2,521 3,354 10,916 2,139 46,559 2,244 2,791 29,304 670 15,843 18,685 2,410 3,362 10,811 2,102 46,818 2,102 2,762 29,358 638 15,965 18,339 1,963 3,434 10,833 2,109 19 46,960 2,073 2,765 29,467 627 15,890 18,425 2,093 3,464 10,742 2,126 26 1974 51,813 2,343 3,705 31,920 1,142 15,744 17,461 2,012 3,119 9,783 2,547 52,029 2,338 3,732 31,956 1,005 15,727 17,336 1,901 3,171 9,693 2,571 Aug. 7 52,155 2,237 3,730 31,972 1,035 15,666 16,685 1,719 3,036 9,249 2,681 .14 52,215 2,172 3,685 32,096 771 15,951 16,866 1,964 3,259 9,005 2,638 21 28 52,211 2,114 3,680 32,170 788 16,356 16,480 1,722 3,400 8,863 2,495 Sept. 4p 52,322 2,125 3,681 32,194 789 15,934 16,467 1,644 3,417 8,877 2,529 IIP 52,410 2,123 3,610 32,244 770 15,838 16,285 1,523 3,334 8,868 2,560 18P 52,481 2,089 3,502 32,295 727 15,831 16,047 1,353 3,303 8,890 2,501 25P For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS • OCTOBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash IInnvveesstt-- Obligations Other bonds, items Re- BBaall-- mmeennttss Total of States corp. stocks, in serves Cur- aanncceess iinn ssuubb-- assets/ Wednesday and and process with rency wwiitthh ssiiddiiaarr-- Other total political securities of F.R. and ddoo-- iieess nnoott assets liabil- Total subdivisions collec- Banks coin mmeessttiicc ccoonnssooll-- ities tion bbaannkkss iiddaatteedd Tax Certif. war- All of All rants 3 other partici- others pation^ Large banks— Total 1973 Sept. 5 56,531 7,770 38,285 2,015 8,461 32,746 19,256 3,976 10,362 1.299 20,970 443,624 12 57,183 7,691 38,779 1,989 8,724 31,613 22,045 4,355 9,915 1.300 20,695 448,182 19 56,930 7,532 38,605 2,009 8,784 29,878 21,373 4,294 9,925 1,300 20,575 442,564 26 57,193 7,382 38,625 2,092 9,094 28,988 24,156 4,354 10,176 1,303 20,566 443,501 1974 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 61,768 6,508 41,072 2,541 11,647 30,011 20,482 4,721 10,624 1,639 27,916 492,613 Sept. 4P 62,024 6,660 41,193 2,539 11,632 37,769 25,671 4,350 11,563 1,626 29,307 507,843 UP 62,178 6,652 41,123 2,603 11,800 32,897 22,681 4,711 11,187 1,616 29,185 503,266 182' 61,943 6,581 41,063 2,557 11,742 31,479 21,833 4,709 10,955 1,628 28,700 498,917 25f 61,867 6,540 40,840 2,612 11,875 31,218 25,167 4,758 10,716 1,590 29,540 498,364 New York City 1973 8,989 2,198 4,685 618 1,488 9,076 4,910 490 4,271 615 6,762 101,681 9,607 2,210 5,166 589 1,642 9,583 8,085 500 4,264 614 6,520 106,770 19 9,573 2,143 5,160 587 1,683 9,217 4,718 488 4,530 613 6,661 102,526 9,380 2,069 5,045 594 1,672 9,825 6,372 494 4,800 614 6,553 104,563 26 1974 10,809 2,183 5,874 544 2,208 10,133 7,823 490 4,267 710 9,171 123,393 Aug. 7 10,675 2,143 5,762 546 2,224 10,294 7,288 499 4,346 715 9,479 122,221 14 10,723 2,059 5,900 547 2,217 9,037 7,877 483 3,994 723 8,900 120,448 21 10,640 2,055 5.766 540 2,279 10,861 5,540 508 4,573 728 8,994 122,442 28 Sept. 4P 10,741 2,118 5,838 518 2,267 11,368 8,475 487 4,821 748 9,359 126,634 n^ 10,753 2,108 5,780 513 2,352 10,396 8,310 514 4,827 727 9,497 127,016 UP 11,072 2,351 5,878 509 2,334 9,642 5,007 507 4,803 728 9,306 122,962 2SP 10,986 2,355 5,655 541 2,435 10,833 7,215 522 4,586 713 9,928 124,695 Outside New York City 1973 47,542 5,572 33,600 1,397 6,973 23,670 14,346 3,486 6,091 684 14,208 341,943 47,576 5,481 33,613 1,400 7,082 22,030 13,960 3,855 5,651 686 14,175 341,412 19 47,357 5,389 33,445 1,422 7,101 20,661 16,655 3,806 5,395 687 13,914 340,038 26....... 47,813 5,313 33,580 1,498 7,422 19,163 17,784 3,860 5,376 689 14,013 338,938 1974 iJ::::::::::::::: 5 5 1 1 , , 3 5 2 5 9 5 4 4 , , 6 6 9 2 1 7 3 3 5 5 , , 4 3 8 9 0 0 1 1 , , 9 9 9 7 6 2 9 9 , , 4 3 1 1 2 6 2 1 0 9 , , 7 7 7 0 2 3 1 1 5 6 , , 2 3 1 6 7 8 3 3, , 9 6 7 5 5 3 5 5 , , 7 56 5 3 3 8 8 8 8 6 3 1 1 9 8 , , 3 8 4 6 3 2 3 3 7 71 2 , , 5 1 1 6 5 2 2218 5 5 1 1 , , 1 1 1 2 9 8 4 4 , , 5 4 0 5 3 3 3 3 5 5 , , 2 3 9 0 2 6 2 1 , , 0 99 0 2 1 9 9 , , 3 3 3 6 2 8 2 1 0 9 , , 0 1 4 5 3 0 1 1 7 4 , , 0 9 7 4 3 2 4 4 , , 0 2 1 1 9 3 6 5 , , 0 66 5 0 1 9 8 1 8 1 7 1 1 8 8 , , 6 9 8 2 7 2 3 3 7 70 0 , , 4 1 8 7 5 1 Sept. 4P 51,283 4,542 35,355 2,021 9,365 26,401 17,196 3,863 6,742 878 19,948 381,209 UP 51,425 4,544 35,343 2,090 9,448 22,501 14,371 4,191 6,360 889 19,688 376,250 18J' 50,871 4,230 35,185 2,048 9,408 21,837 16,826 4,202 6,152 900 19,394 375,955 25P 50,881 4,185 35,185 2,071 9,4401 20,385 17,952 4,236 6,130 877 19,612 373,669 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In mUlions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC SSttaatteess SSttaatteess WWWeeedddnnneeesssdddaaayyy aanndd CCeerrttii-- aanndd DDoo-ppoolliitt-- ffiieedd ppoolliitt-- mmeess-- FFoorr-- TToottaall IIPPCC iiccaall UU..SS.. aanndd TToottaallss iiccaall ttiicc eeiiggnn ssuubb-- GGoovvtt.. Com- Mutual Com- ooffffii-- ssuubb-- iinntteerr-- ggoovvttss..22 ddiivvii-- mer- sav- Govts., mer- cceerrss** Sav- Other ddiivvii-- bbaannkk ssiioonnss cial ings ctc.2 cial cchheecckkss ings ssiioonnss banks Large banks— Total 1973 153,018 112,082 6,053 1,146 22,131 796 953 3,419 6,438 190,485 56,203 97,590 22,635 5,505 8,132 5 152,899 112,479 5,827 1,639 21,331 718 913 3,531 6,461 190,459 56,090 97,070 23,000 5,758 8,148 .12 150,787 109,544 5,798 3,596 20,741 671 944 3,371 6,122 190,684 56,001 97,454 22,720 5,914 8,181 .19 151,080 107,225 6,468 5,299 20,173 684 872 3,678 6,681 190,870 56,049 97,549 22,843 5,980 8,017 .26 1974 152,368 109,934 5,793 1,408 21,389 712 1,378 5,358 6,396 217,093 57,548 116,449 24,311 7,203 10,115 7 153,828 113,213 5,960 1,143 20,692 651 1,116 5,247 5,806 217,998 57,419 117,364 24,249 7,201 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 21 153,287 111,840 5,586 1,732 21,251 612 1,172 4,861 6,233 219,453 57,079 118,853 24,266 7,332 10,240 ,28 163,837 117,732 6,094 1,343 24,974 698 1,149 5,178 6,669 219,454 57,062 118,777 24,240 7,445 10,311 SSeepptt.. 4P 158,643 115,076 5,799 1,735 22,815 635 1,442 5,079 6,062 219,904 56,960 119,256 24,334 7,434 10,242 IIP 158,108 113,851 5,609 4,579 21,342 603 1,211 4,966 5,947 219,282 56,881 118,532 24,365 7,546 10,290 .18P 156,387 111,882 6,301 4,331 20,383 571 1,302 5,134 6,483 220,273 56,885 119,005 24,525 7,728 10,407 .25P New York City 1973 40,351 24,070 318 81 9,508 411 755 2,378 2,830 35,323 4,976 20,689 2,153 3,488 3,965 SSeepptt.. 5 40,631 23,476 399 201 9,994 379 691 2,437 3,054 35,080 4,946 20,140 2,326 3,708 3,905 .12 40,130 23,357 348 530 9,691 346 749 2,323 2,786 35,331 4,934 20,395 2,151 3,890 3,883 .19 41,475 22,986 583 1,028 9,765 364 710 2,643 3,396 35,182 4,942 20,279 2,117 3,968 3,790 .26 1974 42,875 23,601 305 138 10,657 363 1,121 3,949 2,741 45,012 4,991 26,421 1,983 4,481 6,213 AAuugg.. 7 42,537 24,558 440 125 9,794 337 896 3,977 2,410 45,448 4,986 26,950 1,888 4,412 6,221 .14 40,818 23,471 314 562 9,649 292 880 3,570 2,080 45,500 4,968 26,953 1,939 4,392 6,244 44,274 25,167 297 345 10,498 321 994 3,629 3,023 45,751 4,935 27,563 1,840 4,324 6,070 45,901 25,865 409 151 11,521 361 941 3,767 2,886 45,909 4,916 27,606 1,863 4,366 6,115 4P 44,113 24,638 303 335 11,057 326 1,258 3,735 2,461 46,178 4,916 27,956 1,880 4,310 6,043 .IIP 42,499 24,147 301 974 9,644 313 1,005 3,584 2,531 46,104 4,902 27,781 1,782 4,424 6,119 .18P 44,073 24,829 494 820 9,848 285 1,069 3,685 3,043 46,285 4,902 27,635 1,880 4,527 6,214 .25^ Outside New York City 1973 112,667 88,012 5,735 1,065 12,623 385 198 1,041 3,608 155,162 51,227 76,901 20,482 2,017 4,167 5 112,268 89,003 5,428 1,438 11,337 339 222 1,094 3,407 155,379 51,144 76,930 20,674 2,050 4,243 110,657 86,187 5,450 3,066 11,050 325 195 1,048 3,336 155,353 51,067 77,059 20,569 2,024 4,298 .19 109,605 84,239 5,885 4,271 10,408 320 162 1,035 3,285 155,688 51,107 77,270 20,726 2,012 4,227 .26 11997744 109,493 86,333 5,488 1,270 10,732 349 257 1.409 3,655 172,081 52,557 90,028 22,328 2,722 3,902 111,291 88,655 5,520 1,018 10,898 314 220 1,270 3,396 172,550 52,433 90,414 22,361 2,789 3,999 110,151 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 .21 109,013 86,673 5,289 1,387 10,753 291 178 1,232 3,210 173,702 52,144 91,290 22,426 3,008 4,170 117,936 91,867 5,685 1,192 13,453 337 208 1,411 3,783 173,545 52,146 91,171 22,377 3,079 4,196 SSeepptt.. 4P 114,530 90,438 5,496 1,400 11,758 309 184 1,344 3,601 173,726 52,044 91,300 22,454 3,124 4,199 .IIP 115,609 89,704 5,308 3,605 11,698 290 206 1,382 3,416 173,178 51,979 90,751 22,583 3,122 4,171 .18P 112,314 87,053 5,807 3,511 10,535 286 233 1,449 3,440 173,988 51,983 91,370 22,645 3,201 4,193 .25P For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS • OCTOBER 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 included in time liabili- Wednesday funds liabili- capital Total and De- and savings deposits 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 10 Total to to foreign justed 9 IPC's others branches Large banks— Total 1973 Sept. 5 39,876 708 5,814 18,093 4,572 30,993 258,412 337,861 96,995 69,115 47,252 21,863 1,512 12 44,144 739 5,937 18,393 4,574 30,972 259,779 340,286 98,316 69,058 46,678 22,380 1,942 19 39,597 1,674 6,046 18,218 4,627 30,866 260,682 340,117 96,572 69,236 46,871 22,365 1,801 26 38,447 3,708 6,147 17,729 4,633 30,822 259,592 339,034 96,620 68,846 46,460 22,386 1,731 1974 .Jv;:;;;;:;::: 5 52 4 , , 4 5 5 1 9 6 2 2. , 2 2 6 8 8 6 6 6 , , 1 0 1 1 2 0 2 2 4 3 , , 0 3 1 3 9 3 5 5, , 0 0 6 6 9 6 3 3 3 3 , , 3 3 8 5 6 6 2 2 9 9 6 4 , , 6 8 2 2 9 5 3 37 8 8 0 , , 2 2 5 7 8 7 1 9 0 9 0 , , 7 9 3 2 5 7 8 8 5 6 , , 9 8 9 7 3 7 6 5 0 9 , ,7 6 0 4 7 1 2 2 6 6 , , 2 2 8 3 6 6 2 3 . , 9 49 1 9 0 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 3,694 28 48,646 2,632 5,866 24,333 5,086 33,248 298,543 381,441 100,293 88.442 61,757 26,685 3,012 Sept. 1 4 1 P ^ ' 5 5 3 3, , 2 0 6 3 5 0 2 1 , , 5 9 7 2 2 7 5 5, , 9 9 8 3 8 5 2 2 4 4 , , 7 3 6 1 0 0 5 5, , 1 1 9 1 8 6 3 3 3 3 , , 5 5 1 2 9 7 2 2 9 9 6 9 , , 9 4 1 1 7 1 3 3 8 8 0 3 , , 2 3 0 7 9 1 1 9 0 9 1 , , 7 1 5 9 1 6 8 8 8 8 . , 4 9 4 3 3 4 6 6 1 2 , , 5 0 2 8 7 1 2 26 6 , , 8 9 5 1 3 6 3 3, , 3 0 2 0 8 2 Up 49,413 2,575 6,053 24,809 5,148 33,467 300,813 383,632 100,708 88,167 61,305 26,862 3,334 25P 47,678 4,418 5,745 25,233 5,144 33,424 297,786 379,721 100,455 89,130 61,786 27,344 2.911 New York City 1973 sept. 7,838 15 2,635 6,372 1,304 7,843 59,430 72,407 21,686 21,665 14,090 7,575 1,113 12,608 20 2,795 6,483 1,304 7,849 59,795 74,041 20,853 21,414 13,623 7,791 1,485 2 19 6 . . 8 8 , ,1 8 1 9 6 4 1,0 6 4 4 9 5 2 2 , , 8 8 5 0 7 1 6 6 , , 3 0 0 7 9 3 1 1 , , 3 3 3 4 9 6 7 7 , , 7 7 9 4 9 3 5 5 9 9 , , 8 7 0 7 3 2 7 7 3 2 , , 5 9 4 7 2 6 2 2 0 0 , , 6 8 9 5 2 7 2 2 1 1 , , 6 4 6 3 3 6 1 1 3 3 , , 8 6 2 2 6 7 7 7, , 8 8 0 3 9 7 1 1 , , 4 3 1 7 3 8 1974 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 9,154 1,399 8,694 73,141 88,045 22,570 29,519 19,801 9.718 2,131 Sept. 42>. 13,189 440 2,155 8,847 1,405 8,788 72,446 87,975 22,861 29,615 19,832 9,783 1,820 UP. 14,785 2,260 9,473 1,409 8,798 73,902 89,970 22,325 29,837 20,162 9,675 2,068 ISP. 12,132 250 2,387 9,418 1,417 8,755 73,991 89,654 22,239 29,746 20,027 9.719 2,246 25P. 10,934 1,527 2,236 9,507 1,424 8,709 72,427 87,434 22,572 29,969 19,931 10,038 1,793 Outside New York City 1973 Sep,. 32,038 693 3,179 11,721 3,268 23,150 198,982 265,454 75,309 47,450 33,162 14,288 399 31,536 719 3,142 11,910 3,270 23,123 199,984 266,245 77,463 47,644 33,055 14,589 457 19. 31,481 1,029 3,189 11,909 3,288 23,067 200,879 266,575 75,880 47,573 33,045 14,528 388 26. 29,553 2,659 3,346 11,656 3,287 23,079 199,820 266,058 75,763 47,410 32,833 14,577 353 1974 Aug. 7. 40,431 2,286 4,014 14,835 3.676 24,637 223,946 292,962 77,788 57,226 40,871 16,355 1,194 2 2 14 8 1 . . . 3 3 3 9 7 7 , , , 2 9 6 2 0 3 9 9 9 2 2 2 , , , 1 3 6 3 7 3 8 5 2 3 3 3 , , , 8 7 8 0 9 4 1 3 7 1 1 1 4 4 5 , , , 7 1 5 1 7 6 5 9 6 3 3 3 . , , 6 6 6 7 8 8 7 5 7 2 2 2 4 4 4 , , , 6 5 5 0 5 8 9 4 1 2 2 2 2 2 2 3 3 5 , , , 3 4 1 5 0 8 6 2 1 2 2 2 9 9 9 1 1 3 , , , 8 3 1 4 9 6 6 6 0 7 7 7 8 7 7 , , , 6 7 0 0 2 0 3 3 1 5 5 5 7 8 8 , , , 9 7 4 2 3 8 3 1 0 4 4 4 1 1 1 , , , 2 7 9 3 3 5 5 9 6 1 1 1 6 6 6 , , , 4 7 9 9 4 6 6 1 7 1 1 , , 1 0 8 1 5 8 2 5 1 Sept. 4P. 39,841 2,132 3,780 15,463 3,71 24,739 224,471 292,234 76,890 58,828 41,695 17,133 1,182 UP. 38,480 1,927 3,728 15,287 3,789 24,721 225,509 293,401 78,871 59,097 41,919 17,178 1,260 ISP. 37,281 2,325 3,666 15,391 3,731 24,712 226,822 293,978 78,469 58,421 41,278 17,143 1,088 2SP 36,744 2,891 3,509 15,726 3,720 24,715 225,359 292,287 77,883 59,161 41,855 17,306 1,118 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 s Includes corporate stocks. banks, less cash items in process of collection. «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

OCTOBER 1974 • BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1974 1974 1974 1974 1973 Industry Sept. Sept. Sept. Sept. Aug. 1st 2nd 25 18 11 4 28 Sept. Aug. July III II I half half Durable goods manufacturing: Primary metals 1,927 1,943 1,933 1,880 1,871 56 5 1 62 -23 79 56 -229 Machinery 8,897 9,014 8,750 8,606 8,545 352 42 -16 378 779 1,069 1,848 615 Transportation equipment 3,436 3,438 3,412 3,392 3,367 69 171 89 329 229 358 587 362 Other fabricated metal products... 3,095 3,111 3,063 3,036 2,995 100 38 122 260 235 267 502 71 Other durable goods 55,,113322 55,,114466 55,,111111 5,027 44,,998855 147 190 183 520 560 349 909 -73 Nondurable goods manufacturing: Food, liquor, and tobacco 4,420 4,399 4,329 4,295 4,200 220 175 88 483 -344 124 -220 733 Textiles, apparel, and leather 4,237 4,328 4,352 4,374 4,357 -120 241 -11 110 338 570 908 -205 Petroleum refining 1,780 1,760 1,788 1,787 1,745 35 -87 549 497 68 -176 -108 203 Chemicals and rubber 3,451 3.447 3,388 3,357 3,309 142 108 75 325 355 255 610 -150 Other nondurable goods 22,,663399 22,,666655 22,,661144 2,599 2,575 64 61 31 156 222 116 338 91 Mining, including crude petroleum and natural gas 4,484 4,503 4,489 4,497 4,432 52 50 192 294 74 312 386 -156 Trade: Commodity dealers 1,376 1,388 1,400 1,426 1,459 -83 -32 -78 - 193 -630 357 -273 588 Other wholesale 6,368 6,320 6,280 6,308 6,334 34 -56 140 118 364 471 835 194 Retail 6,923 6,965 6,936 7,061 6,996 -73 -259 86 -246 556 540 1,096 -19 6,135 6,116 6,038 6,033 6,084 51 60 -79 32 34 105 139 80 Communication 2,415 2,388 2,371 2,372 2,383 32 -45 -73 -86 326 149 475 -91 Other public utilities 8,045 7,875 7.847 7,804 7,611 434 -59 749 1,124 1,335 -291 1,044 1,330 Construction 6,450 6,488 6,437 6,409 6,456 -6 161 85 240 623 34 657 11 Services 11,789 11,840 11,827 11,825 11,775 14 41 86 141 404 188 592 927 All other domestic loans 9,787 9,739 9,787 9,731 9,661 126 171 102 399 '•576 541 >•1,117 682 Bankers' acceptances 1,314 11,,228877 1,369 1,316 1,352 -38 -138 -227 -403 381 62 443 -123 Foreign commercial and industrial loans 4,490 4,587 4,594 4,548 4,527 -37 -336 179 -194 ^506 105 ''611 -361 Total classified loans 108,590 108,747 108,115 107,683 107,019 1,571 502 2,273 4,346 6,968 5,584 12,552 4,480 Total commercial and industrial loans of large commercial banks 128,342 128,631 127,937 127,422 126,725 1,617 634 2,506 4,757 ••7,608 '•5,856 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 1974 1973 1974 Industry Sept. Aug. July June May Mar. Feb. Jan. 1st 25 28 31 26 29 27 27 30 III IV half Durable goods manufacturing: Primary metals 1,133 1,104 1,116 1,105 1,111 1,083 1,064 1,046 1,092 28 41 -40 -203 Machinery 3,896 3,789 3,572 3,286 3,213 3,145 3,114 3,037 2,950 610 172 248 186 41220 6 Transportation equipment, 1,535 1,419 1,373 1,410 1,424 1,423 1,365 1,367 1,324 125 45 81 18 Other fabricated metal products 1,066 1,000 996 954 960 934 911 911 938 112 43 17 23 60 Other durable goods 2,268 ''2,198 2,169 2,107 2,012 1,972 1,915 1,837 1,737 161 192 143 -16 335 Nondurable goods manufacturing: Food, liquor, and tobacco. 1,649 1,604 1,604 1,571 1,584 1,533 1,529 1,527 1,514 78 42 38 14 80 Textiles, apparel, and 1,128 leather 1,151 1,171 1,182 1,120 1,147 1,089 1,043 1,032 23 39 86 -25 125 Petroleum refining 1,097 R\ ,048 996 963 954 934 945 901 920 134 18 12 13 30 Chemicals and rubber 1,778 '•1,790 1,760 1,737 1,686 1,690 1,603 1,569 1,570 41 134 42 9 176 Other nondurable goods.. 1,204 ''1,189 1,149 1,171 1,157 1,145 1,139 1,080 1,069 33 32 57 -18 89 Mining, including crude petroleum and natural gas. 3,339 '^3,319 3,197 3,130 3,172 3,284 3,245 3,203 3,153 209 -115 287 -32 172 Trade: Commodity dealers.. 139 166 155 141 144 144 140 129 137 -2 13 11 14 Other wholesale 1,449 1,419 1,446 1,406 1,404 1,335 1,323 1,315 1,265 43 83 133 12 216 Retail 2,527 2,529 2,512 2,428 2,514 2,543 2,480 2,376 2,249 99 -52 274 59 222 C Tr o a m ns m p u o n r i t c a a ti t o io n n 4 1 . , 3 0 4 2 9 9 •'•^41,,30222 1 4 1 , , 3 0 5 3 2 0 4 1 , , 4 0 2 3 5 0 4 1 , , 4 03 7 3 4 4,4 9 1 7 4 8 4,4 9 1 6 7 6 4,3 9 1 4 " 0 4,3 9 2 4 7 7 - - 7 1 6 64 8 1 9 0 7 6 41 2 1 1 0 7 5 0 Other public utilities 3,672 3,664 3,539 3,443 3,356 3,196 3,154 3,245 3,298 229 289 -98 416 191 Construction 2,272 2,218 2,183 2,130 1,984 1,908 1,898 1,940 1,943 142 232 -7 -87 225 Services 5.350 '^5,301 5,273 5,273 5,263 5,223 5,076 5,004 4,937 77 197 27 330 224 All other domestic loans 3,122 '•3,074 3,058 '3,017 2,945 2,935 2,808 2,384 2,692 105 '•209 206 17 '•415 Foreign commercial and industrial loans 2,401 2,500 2,565 '2,548 2,396 2,369 2,350 2,321 2,469 -147 '198 16 148 ••214 Total loans M6,426 M5,845 45,227 44,403 43,906 43,335 42,531 41,48E 41,563 2,023 ,872 1,738 918 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 • OCTOBER 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS' an billions of doUars) Type of holder TToottaall CCllaassss ooff bbaannkk,, aanndd qquuaarrtteerr oorr mmoonntthh ddeeppoottss.. F b i u n s a in n e c s ia s l No b n u f s in in a e n s c s i al Consumer Foreign o A th l e l r All commercial banks: 1970—Sept 17.0 88.0 51.4 1.4 10.0 167. S Dec. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar 18.3 86.3 54.4 1.4 10.5 170.9 June 18.1 89.6 56.2 1.3 10.5 175.8 Sept 17.9 91.5 57.5 1.2 9.7 177.9 Dec 18.5 98.4 58.6 1.3 10.7 187.5 1972—June 17.9 97.6 60.5 1.4 11.0 188.4 Sept 18.0 101.5 63.1 1.4 11.4 195.4 Dw 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar 18.6 102.8 65.1 1.7 11.8 200.0 June. 18.6 106.6 67.3 2.0 11.8 206.3 Sept 18.8 108.3 69.1 2.1 11.9 210.3 Dec 19.1 116.2 70.1 2.4 12.4 220.1 1974_Mar 18.9 108.4 70.6 2.3 11.0 211.2 June 18.3 112.1 71.2 2.2 11.1 214.9 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—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 14.7 62.2 29.6 2.1 6.2 114.7 MMaayy 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 14.4 63.6 28.4 2.1 6.5 115.1 Aug.f 14.1 62.7 27.9 1.9 5.9 112.5 i 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 NOTO.—^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 555555555555559999999 555555533333338888888 555555500000007777777 AAllll mmeemmbbeerr——CCoonntt.. Insured 555555555555554444444 555555533333333333333 555555500000003333333 444444777777888888 OOtthheerr llaarrggee bbaannkkss ii 66666669999999 66666663333333 55555558888888 66662222 National member 333333311111111111111 333333300000004444444 222222288888888888888 222222888888222222 All other member i....... 333333311111113333333 333333311111112222222 222222299999994444444 222288884444 State member 77777771111111 77777771111111 66666664444444 666666444444 All nonmember 111111177777777777777 111111166666663333333 111111155555555555555 All member 333333388888881111111 333333377777775555555 333333355555552222222 333333444444666666 Insured 111111177777772222222 111111155555558888888 111111155555552222222 113311 Noninsured 5555555 5555555 3333333 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 $4(X) million), as described in the BULLETIN for way in call-date series. That is, they are excluded from "Time deposits" July 1972, p. 626. Categories shown here as "Other large" and "All other and "Loans" in the monthly (and year-end) series as shown on pp. A-16; member" parallel the previous "Reserve City" (other than in New York from the figures for weekly reporting banks as shown on pp. A-20-A-24 City and the City of Chicago) and "Country" categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-15. But they are included in the figures for "Time deposits" and "Loans" for call dates as shown on pp. A-16-A-19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • LOAN SALES BY BANKS; OPEN MARKET PAPER A 27 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions. To all others except banks By type of loan By type of loan Date Total Total Commercial Real All Commercial All and estate other and other industrial industrial 1974_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 2169. . 5 5 , , 3 37 8 2 0 2 2 , , 9 88 4 8 3 2 2, , 4 4 2 9 9 2 1 1, , 4 4 2 5 9 0 3 3 9 8 1 2 1 1 , , 0 0 5 4 9 7 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. 5,411 2,905 2,506 1,481 440 1.041 Aug. 7. 5,419 2,846 2,573 1,422 401 1,021 2 2 1 8 41. ' . - 5 5 5 , , . 4 3 5 3 9 0 8 6 2 2 2 3 , , , 8 8 03 3 8 3 4 2 2 2 2, , , 3 6 6 6 0 2 3 4 0 1 1 1 , , , 4 4 4 1 3 7 3 2 2 4 4 4 0 9 3 8 1 4 1,0 9 9 0 9 8 5 8 1 Aug. 282 4,893 2,883 188 1,822 Sept. II4.. 4.916 2,875 187 1,854 4; 932 2,902 185 1,845 18. 4,837 2,826 178 1,833 25. 4,913 2,830 178 1,905 1 To bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. 2 Change in series. As of Aug. 28, 1974, the panel of reporting banks was revised to include only large weekly reporting banks, and those banks were asked to report only loans sold to a newly defined group of related types of institutions (for enumeration of these types, see footnote 1). A detailed comparison of the old and new data for Aug. 28, 1974, appears in the "Announcements" section of this BULLETIN. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by- Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex- Others ports ports All Bank Bank For- into from other related Other 1 related Other2 Total Own BUls Own eign United United bills bought acct. corr. States States 196 5 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 1,216 10,601 3,078 17,705 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 197 0 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 197 1 32,126 495 10,923 1,478 19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 197 2 34,721 930 11,242 1,707 20,842 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973—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 2,251 454 589 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. '•45,561 1,553 13,636 5,497 '•24,875 15,686 3,499 2,983 516 218 ,023 10,947 3,589 3,774 8,323 Aug. 46,479 1,730 14,292 5,207 25,250 16,167 3,388 2,866 522 277 ,202 11,300 3,585 3,933 8,649 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 • OCTOBER 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 I974_Jan. 7. 1974—Apr. 11. I974-.june 3.. 19 25 14. 15. IOb-IOVio- 7.. mA July 2 29. 19. 10l-OlOi^i/iao- 2 1 1 0 . . . . llVi- 23. 24.. 1 1 8 7 Feb. 1 1 1 9 . . 24. 104/10- 25.. V- 2 3 25. 26.. 30 26. 25.. 11%.-118/1« 1014/100%-. 28.. Aug. 6 Mar. 4. 26.. 13::!!!;! 103^-11 July 3.. 1134»-118/io- 2 2 2 2 9 1 2 8 2 2 1 5 1 2 9 . . . . 8 8 8 3 3 8/ 4 i 4 ».9 . • - - 8 8 « 8 8 / / 1 10 0 - 9 30. lo 1m v 0 i" x3 - ^4 -11 2 9 5 3 . . . , . , l 11 l« 20 / 1 .3 i0 - 2 41 - 1 -2 1 11 4 2 24B « - 26. 9a May 2.. 1034 Bill Sept. 14 28. 10«/ia-1034l Aug. 20. 1034-12. 18 934-10. 29. 3.. 27 Apr. 2, 6., lOVio-1034- Sept. 26. Oct. 2 2 2 4 10 3 914-9V10- 7., 11 1 1 1 " 4 94 9 /1 3 0- 4 9% - 1 1 1 3 0 7 . . . , , 1l 1 l1i 1 4- 1 1" 4 1-1 - l n l4V - " V i i o o 5 934. 934.-98/I(^- 20. 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 predominant 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) AAllll ssiizzeess 1-9 10-99 100-499 500L-999 1,000 and over CCCeeennnttteeerrr Aug. May Aug. May Aug. May Aug. May May Aug. May 1974 1974 1974 1974 1974 1974 1974 1974 ^974 1974 1974 1974 Short-term 35 centers 12.40 11.15 11.74 10.50 12.34 11.06 12.60 11.41 12.48 11.32 12.34 11.06 New York City 12.38 11.08 12.14 10.70 12.82 11.25 12.85 11.54 12.35 11.24 12.32 11.00 7 Other Northeast 13.17 11.65 13.07 11.31 13.20 11.69 13.34 12.01 13.29 11.94 13.05 11.40 8 North Central 12.36 11.09 11.25 9.59 12.42 10.80 12.68 11.36 12.49 11.37 12.25 11.00 7 Southeast 11.85 10.88 11.41 10.43 11.60 10.69 11.84 10.92 11.84 10.93 12.00 10.94 8 Southwest 11.95 10.82 10.83 10.32 11.62 10.67 12.02 10.97 12.15 10.84 11.99 10.78 4 West Coast 12.15 11.19 12.38 11.01 12.29 11.27 12.30 11.34 12.33 11.30 12.07 11.13 Revolving credit 35 centers 12.46 11.21 12.06 11.00 12.46 11.27 12.47 11.36 12.35 11.32 12.48 11.19 New York City 12.48^ 11.47 12.72 10.76 12.49 11.16 12.60 11.27 12.58 11.31 12.46 11.49 7 Other Northeast 12.38 11.35 13.60 11.36 12.86 11.52 12.04 11.36 11.57 11.02 12.49 11.38 8 North Central 12.72 11.06 12.38 11.63 12.31 11.37 12.45 11.35 12.06 11.19 12.87 11.00 7 Southeast 12.44 10.58 9.54 10.00 11.42 10.17 11.03 10.51 11.74 11.00 13.27 10.52 8 Southwest 12.81 11.84 12.74 11.73 12.43 11.28 13.03 11.79 12.57 12.12 12.88 11.79 4 West Co&st 12.35 11.01 12.69 10.71 12.60 11.37 12.53 11.39 12.49 11.31 12.31 10.93 Long-term 35 centers 11.74 11.41 11.76 10.61 11.85 10.82 12.30 10.92 12.43 11.58 11.57 11.48 New York City 9.72 12.64 10.43 10.67 12.56 11.50 12.72 11.90 12.26 12.06 9.33 12.74 7 Other Northeast 12.74 11.27 12.70 10.81 11.83 11.03 12.60 11.01 12.20 11.76 13.01 11.26 8 North Central 13.12 11.14 11.27 9.49 11.47 10.13 12.27 11.10 12.69 11.66 13.40 11.13 7 Southeast 10.27 11.03 11.05 10.19 10.83 9.96 11.69 11.49 11.06 9.96 8.30 11.50 8 Southwest 13.43 10.83 12.09 11.51 12.84 11.32 12.06 10.64 12.41 11.36 14.22 10.65 4 West Coast 12.41 9.97 11.38 11.31 13.09 11.06 11.82 9.40 13.43 11.34 12.32 9.81 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

OCTOBER 1974 • INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities ^ PPrriimmee FFFiiinnnaaannnccceee ccoommmmeerrcciiaall CCCOOO... PPPrrriiimmmeee FFFeeeddd--ppaappeerr 11 pppaaapppeeerrr bbbaaannnkkkeeerrrsss eeerrraaalll 3-month bills 5 6-month bills S 9-to 12-month issues PPPeeerrriiioooddd ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee 333 yyeeaarr 90-119 4- to 6- 333--- tttooo 666--- 999000 dddaaayyysss iii Rate Market Rate Market 1-year iissssuueess «« days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other« issue issue ket yie|d)5 1967 55555.....1111100000 44444.....8888899999 44444.....7777755555 44444.....2222222222 44444.....333332222211111 44444.....2222299999 44444.....666663333300000 44444.....6666611111 44444.....7777711111 44444.....8888844444 55555.....0000077777 1968 55555.....9999900000 55555.....6666699999 55555.....7777755555 55555.....6666666666 55555.....333333333399999 55555.....3333344444 55555.....444447777700000 55555.....4444477777 55555.....4444466666 55555.....6666622222 55555.....5555599999 1969 77777.....8888833333 77777.....1111166666 77777.....6666611111 88888.....2222211111 66666.....666667777777777 66666.....6666677777 66666.....888885555533333 66666.....8888866666 66666.....7777799999 77777.....0000066666 66666.....8888855555 1970 77777.....7777722222 77777.....2222233333 77777.....3333311111 77777.....1111177777 66666.....444445555588888 66666.....3333399999 66666.....555556666622222 66666.....5555511111 66666.....4444499999 66666.....9999900000 77777.....3333377777 1071 55555.....1111111111 44444.....9999911111 44444.....8888855555 44444.....6666666666 44444.....333334444488888 44444.....3333333333 44444.....555551111111111 44444.....5555522222 44444.....6666677777 44444.....7777755555 55555.....7777777777 1972 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1973—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 Aui, 11.79 11.65 9.31 12.08 12.01 8.744 8.96 8.853 9.11 8.88 9.54 8.64 Sept. 11.36 11.23 9.41 11.06 11.34 8.363 8.06 8.599 8.53 8.52 8.95 8.38 Week ending— 1974—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 10.98 10.75 9.00 10.75 11.60 8.260 8.23 8.324 8.32 8.14 8.68 8.06 11.33 11.10 9.00 10.75 11.85 8.177 7.88 8.175 8.04 8.10 8.66 8.09 11.65 11.48 9.00 10.90 11.97 7.841 7.45 8.003 7.96 8.24 8.88 8.33 JJuullyy 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 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 AAuugg.. 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 11.60 11.48 9.00 12.00 12.09 8.505 8.75 8.660 8.82 8.49 9.27 8.59 11.73 11.63 9.05 12.08 12.02 8.763 8.75 8.719 8.78 8.50 9.33 8.58 11.95 11.80 9.65 12.16 12.23 8.846 9.29 8.899 9.41 9.25 9.71 8.69 12.00 11.85 9.65 12.10 11.84 9.908 9.37 9.930 9.61 9.38 9.93 8.69 SSeepptt.. 11.84 11.72 9.41 11.79 11.64 9.167 9.34 9.283 9.39 9.14 9.65 8.61 14 11.75 11.63 9.43 11.46 11.48 9.099 9.10 8.980 8.92 8.69 9.14 8.52 11.43 11.25 9.50 10.95 11.41 8.185 7.64 8.203 8.30 8.40 8.74 8.35 10.68 10.58 9.35 10.36 11.12 7.002 6.81 7.928 7.91 8.10 8.53 8.14 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 reprethe range of daily dealer closing rates offered for domestic issues; prior sentative of the day's transactions, usually the one at which most transdata are averages of the most representative daily offering rate quoted by actions occurred. dealers. ^ 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-\19 day range. ^ 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 yolume 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 • OCTOBER 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total 1 States (long- Re- Aaa Baa Indus- Rail- Public term) Total 1 Aaa Baa New cently trial road utility Pre- Com- Comissue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1973--Sep t 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 ^•8.21 1974—Ja n 6.56 5.23 5.03 5.49 8.21 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 8.96 Apr 7.04 5.76 5.45 6.06 '•8.99 ''8.95 8.50 8.25 8.88 8.39 8.51 8.68 7.83 3.86 May 7.07 6.06 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 10.30 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 A Se u p g t 7 7 . . 3 3 3 0 6 6 . .7 7 7 0 6 6 . . 3 4 8 9 7 7 . .1 1 8 0 1 1 0 0 . . 0 3 7 8 1 1 0 0 . . 1 3 9 0 9 9 . . 3 6 6 7 9 9 . . 2 0 4 0 1 9 0 . . 7 1 7 2 9 9 . . 1 4 6 4 9 9 . .4 3 6 0 190..7101 8 8 . .9 6 3 1 4 5 . . 9 4 0 5 Week ending— '•lO.Sl 1974—Aug. 3. 7.24 6.69 6.40 7.05 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 Sept. 7 7.33 6.86 6.60 7.20 10.31 10.24 9.53 9.13 9.95 9.32 9.37 9.96 9.02 5.40 2 1 1 4 7 7 . . 3 3 1 1 6 6 . . 7 7 9 6 6 6 . .4 5 5 0 7 7 . . 2 2 0 0 1 1 0 0 . . 2 3 7 7 1 1 0 0 . . 3 2 0 6 9 9 . . 6 6 1 9 9 9 . .2 2 9 0 1 1 0 0 . . 0 1 5 7 9 9. . 4 4 9 0 9 9 . . 4 4 3 7 1 1 0 0 . . 0 1 5 4 88..9U2 5 5 . .4 4 9 2 28 7.27 6.68 6.40 7.10 10.46 10.27 9.75 9.32 10.26 9.52 9.53 10.24 8.82 5.50 Number of issues2... 12 20 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- govt.: General obligations only, based on Thurs. figures; from Moody's arately. Because of a limited number of suitable issues, the nimiber 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; earnings/price ratios are as of end of period. NOTE.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on eight median yields for a sample of non- Bonds: Monthly and weekly yields are computed as follows: (1) U.S. callable issues—12 industrial and 2 public utility; common stock ratios Govt.: Averages of daily figures for bonds maturing or callable in 10 years on the 500 stocks in the price index. Quarterly earnings are seasonally or more; from 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 acyear 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 5Vi hours per day, or 21 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

OCTOBER 1974 a SECURITY MARKETS A 31 SECURITY PRICES Common stock prices VVVooollluuummmeee ooofff BBBooonnnddd ppprrriiiccceeesss New York Stock Exchange AAAmmmeeerrr--- tttrrraaadddiiinnnggg iiinnn (((pppeeerrr ccceeennnttt ooofff pppaaarrr))) iiicccaaannn ssstttoooccckkksss SSStttoooccckkk (((ttthhhooouuusssaaannndddsss ooofff PPPPeeeerrrriiiioooodddd Standard and Poor's index New York Stock Exc ihange index EEExxx--- ssshhhaaarrreeesss))) (1941-43=10) (Dec. 31, 1965 = 50) ccchhhaaannngggeee tttoootttaaalll iiinnndddeeexxx ( G t l e U 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 A r t - e Total In tr d i u a s l - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u a s l - T p t r o i a o r n t n a s - - Utility na F n i- ce 111 ((( 999 AAA 111 777 000 uuu 000 333 ggg ))) === ... 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—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 Sept 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 Week ending— 1974_Sept. 7 54.91 69.9 56.1 70.38 79.27 32.72 31.00 36.80 40.77 26.66 25.14 36.21 68.26 14,756 1,694 14 , . 55.11 70.8 56.2 67.88 76.39 31.13 30.20 35.49 39.18 25.55 24.57 35.57 65.22 13,591 2,069 21 .... 55.06 71.2 56.3 68.31 76.81 31.67 30.68 35.73 39.38 25.68 24.73 36.69 64.82 15,420 1,976 28 55.38 72.1 56.3 67.28 75.35 31.82 31.85 35.42 38.70 25.39 25.33 37.44 65.59 12,176 1,200 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks ^ Regulated 2 UUnnrreegguu-llaatteedd 33 FFFFrrrreeeeeeee ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss aaaatttt bbbbrrrrooookkkkeeeerrrrssss ^^^^ EEEEEnnnnnddddd ooooofffff pppppeeeeerrrrriiiiioooooddddd By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock TToottaall BBrrookkeerrss BBaannkkss credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. [973—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 6,527 5,519 1,008 5,330 944 180 48 9 16 1,869 425 1,583 Apr 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 1,027 172 45 8 13 1,721 395 1,360 July 55,,999966 4,925 1,071 4,760 1,013 158 45 7 13 11,,773399 402 1,391 Aug 44,,667722 44,,551100 115566 6 442277 11,,338822 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 • OCTOBER 1974 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) TToottaall Equity class (per cent) Equity class of accounts EE ppee nndd rrii oo oo dd ff ( l ( l dd dd ii mm oo oo ee oo nn ff bb ii ll ll -- ss -- tt 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 e r End of period c s N t r a e e t d u t i s t 60 o r p e i m n r o d c r e e e n b t i i t 6 L s 0 e t a p s t s e u r s t h c a e n n t o ( f b m T a d i l o o l a l t l i n a l o a c l n r e s s ) llaarrss))!! 1973—Aug 35.9 45.6 18.5 5,650 1973—Aug.. 5.830 5.0 8.4 16.4 19.6 24.2 26.4 Sept 37.4 53.1 9.4 5,740 Sept.. 5,730 5.0 13.9 18.9 23.9 23.5 16.8 Oct 38.5 46.7 14.8 5,860 Oct. . 5,690 7.2 10.0 19.9 22.6 22.1 18.2 Nov 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 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 Mar 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 Apr 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 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.. 4,750 4.0 4.8 7.9 13.3 22.2 47.9 39.9 34.0 26.0 6,783 Aug.. 4,510 3.5 4.0 6.6 11.2 18.4 56.3 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 TTToootttaaalll MMoorrttggaaggee llooaann aaasssssseeetttsss——— ccoommmmiittmmeennttss EEEnnnddd ooofff pppeeerrriiioooddd MM ggaa oo gg rr ee tt-- OOtthheerr GG UU oo ..SS vvtt .. .. SS gg ll aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. oo CC tt rr aa oo hh aa nn rr ee tt pp dd ee rr oo 11 -- CCCaaassshhh OOO aaasss ttt sss hhh eee eee ttt rrr sss g l g l g l rrr iii eee TTT eee aaa aaa ttt sss ooo nnn iii bbb eee nnn eee eee ttt iii sss ddd rrr aaa lll rrr vvv iii aaa --- lll eee lll DDDeee iii ppp tttsss ooo sss--- lll OOO iiiaaa ttt ttt iii bbb eee hhh sss iii eee lll iii rrr --- GGG rrr ccc eee ooo eee sss aaa uuu nnn eee ccc nnn eee rrr --- vvv rrr tttsss aaa eee lll ccllaassss (( iiff ii ii nn ee dd mm bb oo yy nn tt mm hhss aa )) tt uurriittyy aaacccccctttsss... 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—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 July... 74,541 4,311 2,650 884 22,383 1,402 2,487 108,660 97,713 3,144 7,803 990 586 316 1,076 2,968 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

OCTOBER 1974 • SAVINGS INSTITUTIONS A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort- Real Policy Other End of period assets Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign Total Bonds Stocks gages estate loans assets 197 0 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16.064 10,909 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17.065 11,832 197 2 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973_julyr 247,264 11,413 4,443 3,387 3,583 118,205 91,455 26,750 78,335 7,551 18,895 12,865 Aug.*" 247,890 11,405 4,414 3,390 3,601 118,012 91,727 26,285 78,781 7,592 19,252 12,848 Sept. »• 250,453 11,407 4,375 3.396 3,636 119,364 91,843 27,521 79,187 7,639 19,597 13,259 Oct. ^ 251,925 11,456 4,421 3.397 3,638 119,885 92,105 27,780 79,677 7,713 19,870 13,324 Nov. 251,178 11,574 4,514 3,404 3,656 118,100 92,265 25,835 80,371 7,771 20,039 13,323 Dec.'^ 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 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 13,805 256,583 11,594 4.317 3,526 3,751 120,466 95,010 25,456 82,469 7,795 20,830 13,429 M^y 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 July 259,187 11,675 4,301 3,572 3,802 120,404 96,507 23,897 83,697 7,924 21,581 13,906 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 MMoorrttggaaggee TToottaall llooaann ccoomm-aasssseettss-- mmiittmmeennttss EEnndd ooff ppeerriioodd M ga o g r e t s - I s n i m t e v i c e e e u n s s r ! t t - - Cash Other lliiaa TT bb oo iill tt ii aa ttii ll ee ss S c a a v p i i n t g a s l wo N r e th t 2 m ro B o w n o e e r- y d 3 p L ro o i c a n e n s s s Other oouu aa pp tt tt ss ee ee tt rr aa nn iioo nn dd dd dd oo ii 44 nn ff gg 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—-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 July 245,529 23,024 22,045 290,598 237,938 18,157 21,635 4,878 7,990 10,854 Aug.P 247,076 22,065 22,503 291,644 236,783 18,436 22,844 4,562 9,019 9,890 1 Excludes stock of the Federal Home Loan Bank Board. Compensating included in other assets. The effect of this change was to reduce the mortchanges 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 passall, 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 • OCTOBER 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest- of Receipts Outlays or Public ments by Govt, Trea- financdeficit debt Agency accounts'' i Less: Equals: sury ing, (-) securi- securi- Special Total operat- Other net 3 ties ties notes 2 ing S is p s e u c e ia s l Other balance Fiscal year: 197 1 188,392 211,425 -23,033 27,211 -347 6,616 801 19,448 710 -710 3,587 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 1,623 19,442 1,362 1,108 6,003 197 3 232,225 246,526 -14,301 30,881 216 11,712 109 19,275 2,459 -1,613 -4,129 1974f 264,847 268,343 -3,495 16,918 912 13,673 1,140 3,017 -3,417 534 -2,405 Half year: 1972—July-Dec.. 106,062 118,579 -12,517 22,038 876 5,996 -468 17,386 956 -1,520 -5,434 1973—Jan.-June. 126,163 127,947 -1,784 8,843 -660 5,716 577 1,889 1,503 -93 1,305 July-Dec.., 124,253 130,360 -6,107 11,756 477 5,376 845 6,013 -2,202 -191 -2,299 1974—Jan.-Junep 140,594 137,983 2,612 5,162 435 8,297 295 -2.996 -1,215 725 -106 Month: 1973—Au g '•21,365 '•22,110 '•-745 2,842 301 3,080 625 -563 -4,105 '•5,921 '•3,118 Sept 25,007 20,736 4,271 -406 40 -753 -176 564 5,207 346 718 Oct 17,637 23,092 -5,455 1,037 29 -292 -36 1,395 -2,588 -43 1,431 Nov 20,208 22,099 -1,891 1,561 273 -3,508 3,139 2,202 -1,010 -48 -1,368 Dec 21,987 19,686 2,302 5,861 -174 5,584 -3,025 3,128 5,693 -54 209 1974—Ja n 23,476 23,671 -195 -1,714 12 -1,069 139 -773 168 544 1,681 Feb 20,226 21,030 -804 2,503 -17 2,489 159 -162 -2,877 -84 -1,995 Mar 16,818 22,905 -6,086 3,813 394 -155 52 4,309 690 191 2,657 A J M u p a n r y e f 2 3 1 9 1 9 , , , 6 2 1 5 4 7 7 3 4 2 2 2 2 3 4 , , , 2 1 9 7 2 8 3 3 1 -4 7 7 , , , 7 3 0 3 8 5 9 4 2 -2 2 , , 5 7 3 9 7 8 7 3 5 -2 3 3 8 7 7 4 2 , , - 1 9 9 7 4 3 8 7 -2 1 1 3 2 1 1 5 - - 2 3 , , 5 8 0 7 2 7 8 -5 3 2 , , 0 , 1 7 3 2 2 5 r 1 1 - , 1 , 3 1 2 1 2 5 9 0 -1 - - , 4 5 4 3 8 2 8 8 3 July 20,939 24,411 -3,472 1,109 -126 -858 198 1,644 -2,705 -658 -1,534 Aug 23,620 25,408 -1,787 6,447 -56 4,133 -25 2,283 -1,012 83 -1,425 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s l T a o n a a d x n d t O a e r p t i h c o e s s 4 r i - Total se P d c u u e b r b i l t i t i c e s s A ec g u e r n it c ie y s G I o n v v t e , s a tm cc e o n u t n s t s o f « i S n L p o e e te s c s s ia : 2 l E T q o u t a a l l s : s c p o G o N r n o p o s v s w o . t — . r - ed accounts S is p s e u c e ia s l Other private 5 Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 1199774 3 P 4 2 , , 0 9 3 1 8 9 8 6 , , 4 1 3 5 3 2 106 1 9 2 , , 1 5 5 7 9 6 4 4 5 7 8 5 , , 1 0 4 6 2 0 1 1 1 2 , , 1 0 0 2 9 1 1 1 0 1 1 4 , , 2 9 4 2 8 1 2 2 4 5 , , 1 27 3 3 3 8 8 2 2 5 5 3 3 4 4 3 6 , , 0 0 4 6 5 2 6 5 5 1 , ,3 4 2 1 5 1 Calendar year: 197 2 1,856 8,907 310 11,073 449,298 11,770 95,532 23,556 825 341,155 43,459 197 3 2,543 7,760 70 10,374 469,898 11,586 105,555 24,978 825 349,058 59,857 Month: 1973—Aug.. 847 2,217 3.072 461,845 11,419 105,593 25,076 825 341,769 54,409 Sept.. 1,626 6,582 71 8,279 461,439 11,459 104,840 24,900 825 342,333 56,691 Oct... 1,839 3,781 71 5,691 462,476 11,488 104,548 24,864 825 343,727 59,330 Nov.. 1,945 2,666 70 4,681 464,037 11,760 101,040 28,003 825 345.930 59,317 Dec.. 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 59,857 1974_jan 2,844 7,628 69 10,542 468,184 11,598 105,555 25,117 825 348,285 59,566 Feb 2,017 5,579 69 7,665 470,687 11,581 108,044 25,276 825 348,123 59,282 Mar 1,372 6,915 69 8,356 474,500 11,975 107,889 25,328 825 352,433 59,897 Apr 2,814 8,576 89 11,480 471,903 12,012 107,796 25,363 825 349.931 61,151 May 3,134 3,226 88 6,448 474,675 11,984 110,743 25,152 825 349,939 62,650 J J u u n ly e f 2 3 , , 9 8 1 2 9 2 2 6 , , 5 1 4 5 4 2 8 8 8 8 9 6 , , 1 4 5 5 9 4 6 4 4 7 7 5 5 , , 0 3 6 4 0 4 1 1 2 1 , ,8 0 9 2 5 1 1 11 1 4 4 , , 0 9 6 2 3 1 2 2 5 5 , , 2 4 7 7 3 1 825 3 3 4 4 6 7 , , 0 7 6 0 2 6 . 65,411 Aug 3,303 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980. 1 With the publication of the Oct. 1974, Federal Reserve BULLETIN, taries*' (deposits in certain commercial depositaries that have been conthese series have been corrected (beginning in fiscal year 1971) to exclude verted from a time to a demand basis to permit greater fiexibility in special issues held by the Federal home loan banks and the General Treasury cash management). Services Adm. Participation Certificate Trust, which are not Government 5 Includes debt of Federal home loan banks. Federal land banks, R.F.K. accounts. Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks 2 Represents non-interest-bearing public debt securities issued to the for cooperatives (both beginning Dec. 1968). International Monetary Fund and international lending organizations. <> Beginning July 1974, public debt securities excludes $825 million of New obligations to these agencies are handled by letters of credit. notes issued to International Monetary Fund to conform with Office of 3 Includes accrued interest payable on public debt securities, deposit Management and Budget's presentation of the budget. funds, miscellaneous liability and asset accounts, and seigniorage. * As of Jan. 3, 1972, the Treasury operating balance was redefined to NOTE.—Half years may not add to fiscal year totals due to revisions in exclude the gold balance and to include previously excluded "Other deposi- series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 ta ti 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 e s Period Total W he it l h d - F C p P E t u a i a r l o e e i n m g n c s d n - - . i N w h o i e t l n h d - - fu R n e d - s t N ot e a t l G ce r r e i o p - s ts s fu R n e d - s c E o P r m n t o a a t y l p x r l - i e l b o s u y t a m S io n e e d n l n f s - t ^ i e n U m s n u p - r l. . c O e n r t i e h p e - e t t s 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 t e c M e r i i p e s - t c s . 4 taxes empl. Fiscal year; 197 1 188,392 76,490 24,262 14, 522 86 ,230 30,320 3,535 39,751 1,948 3,673 3,206 48,578 16,614 2,591 3,735 3,858 197 2 208,649 83,200 25,679 14,143 94,737 34,926 2,760 44,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,225 98,093 27,017 21,866 103,246 39,045 2,893 52,505 2,371 6,051 3,614 64,542 16,260 3,188 4,917 3,921 1974P 264,847 111,857 27 30,819 23,957 118,750 41,789 3,125 62,886 3,008 6,907 4,049 76,849 16,885 3,334 5,009 5,355 Half year: 1972—July-Dec... 106,062 46,056 5,784 688 51,152 15,315 1,459 22,493 165 2,437 1,773 26,867 8,244 1,551 2,333 2,059 1973—Jan.-June.. 126,164 52,037 221,233 21,179 52,094 23,730 1,434 30,013 2,206 3,616 1,841 37,657 8,016 1,637 2,584 1,861 July-Dec... 124,253 52,961 6,207 999 58,170 16,589 1,494 29,965 201 2,974 1,967 35,109 8,966 1,633 2,514 2,768 1974—Jan.-Junef. 140,495 58,896 2724' ,611 22,954 60,580 25,200 1,630 32,919 2,808 2,932 2,082 41,741 7,920 1,701 2,495 2,587 Month: >9,083 1973—Au g '•21,365 451 257 '•9,277 904 209 7,087 1,357 '•335 >•8,779 1,434 303 494 '•382 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 66 10,006 939 287 5,578 825 321 6,724 1,563 301 462 501 Dec 21,987 8,887 362 115 9,134 6,201 105 3,760 89 299 4,149 1,536 224 333 515 1974—Jan 23,476 9,296 5,076 45 14,327 1,722 160 4,439 170 244 378 5,232 1,263 304 455 334 Feb 20,226 9,505 945 1,851 8,601 1,066 248 7,080 214 761 346 8,400 1,315 239 423 429 Mar 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 5,721 1,211 277 465 377 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 335 1 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 10,036 1,391 295 437 343 JuneP 31,174 10,404 4,084 462 14,029 9,313 236 4,757 281 88 3: 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 Aug 23,620 10,223 491 229 10,485 1,084 256 7.813 1,363 368 9,544 1,415 355 453 540 Budget outlays Com. Gen- Na- Nat- Com- mun. Educa- eral Intra- Period tional Intl. Space Agri- ural merce deve- tion Health Vet- Inter- Gen- reve- govt. Total de- affairs re- cul- re- and lop, and and erans est eral nue transfense search ture sources transp. and man- wel- govt. shar- achous- 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 «6,636 -8,379 19741' 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 19757 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-Dec... 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-Dec... 130,360 37,331 1,617 1,501 3,472 763 7,387 3,215 4,772 48,978 6,518 13,440 3,088 3,032 -4,753 1974—.Tan.-Junef. 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 Mo 1 n 9 t 7 h 3 : — Au g ^22,110 '^6,670 r277 262 440 573 1,090 779 954 '•7,976 '^1,053 ^2,209 rS02 -3 '•-672 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—Jan 23,671 6,793 351 251 756 -544 886 331 983 9,067 1,204 2,353 636 1,532 -929 Feb 21,030 6,509 224 231 138 58 363 198 932 8,979 1,088 2,466 520 1 -677 Mar 22,904 6,686 345 252 205 759 746 263 1,036 9,310 1,194 2,508 499 -898 22,273 6,751 336 293 89 -1,618 740 373 925 9,505 1,165 2,455 586 1,540 -867 JMunaey!P!! .'!! 23,981 7,243 312 278 313 428 875 352 662 10,087 1,180 2,516 498 1 -763 24,J23 7,468 1,050 423 210 -836 1,562 397 1,263 9,655 1,020 2,314 648 -1,052 July 24,4r 5,862 369 216 -60 498 1,099 693 854 10,060 1,258 2,525 466 11,,553388 -967 Aug 25,4() 6,905 260 247 -61 514 2,257 773 925 9,925 1,236 2,477 727 -778 1 Collections of these receijpts, totaling $2,427 million for fiscal year 6 Contains retroactive payments of $2,617 million for fiscal 1972. 1973, were included as part of nonwithheld income taxes prior to Feb. 7 Estimate presented in Budget of the U.S. Government, Fiscal Year 1974. 1975. Breakdown does not add to total because special allowances for 2 Old-age, disability, and hospital insurance, and Raikoad Retirement contingencies, Federal pay increase (excluding Department of Defense), accounts. and acceleration of energy research and development, totaling $1,561 3 Supplementary medical insurance premiums and Federal employee million, are not included. 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 • OCTOBER 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period ppp ddd TTT ggg uuu eee rrr ooo ooo bbb bbb ttt sss ttt lll aaa iii sss ccc lll 111 TToottaall Total Bills Ma C r c e k a e r te t t i a f s i b - le Notes Bonds 2 bb CC vv ii oo bb ee oo nn ll rr ee nn dd tt-- -- ss Total N 3 o nm F is o s a u r r e e k i s e g t 4 n a ble b S o in n a g v d s - s i S ss p u e e c s ia 5 l & notes 1967—.Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec., 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—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 '•359.7 268.8 107.3 128.4 33.0 2.3 '•88.7 '•25.3 62.7 M14.6 Aug. 481.8 '•362.0 272.1 110.6 127.7 33.9 2.3 >•87.6 '•24.1 62.8 '•118.7 Sept. 481.5 362.7 272.6 111.1 127.7 33.8 2.3 87.8 24.1 63.0 117.4 1 Includes non-interest-bearing debt (of which $617 million on Sept. 30, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1974, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): despositary bonds, retirement plan bonds, Rural Electrification Administration bonds. State and local govern- NOTE.—Based on Daily Statement of U.S. Treasury. See also second ment bonds, and Treasury deposit funds. 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 io o d f ppp TTT ggg ddd uuu rrr ooo eee ooo bbb ttt bbb sss aaa llliii ttt sss ccc lll aagg GG tt UU aa ee rr oo uu nn nn ..SS vv ss cc dd ii tt tt .. ee ,, ss BB FF aa .. nn RR kk .. ss TToottaall mm CC bb ee aa oo rr nn mm cc kk iiaa -- ss ll M s M s bb aa aa uu vv nn ii tt nn uu kk gg aa ss ss ll pp II cc nn aa aa oo nn ss nn mm cc uu iiee ee rr -- ss -- rr cc OO aa oo tt tt rr ii hh oo pp ee nn oo rr ss -- gg SS ll aa oo oo tt nn cc aa vv aa dd tt tt ss ee ll .. Savi I n n g d s iv idu O al t s h er nn FF aa ii oo nn tt aa ii rr tt oo nn ee ee dd nn ii rr gg -- aa nn ll!! tt ii OO mm oo nn rr vv tt ii ss hh ss ee cc ee ss 22 .. rr -ffuunnddss 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 197a_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—Aug. 461.8 128.7 76.1 257.1 55.1 2.9 6.3 11.5 27.7 59.8 17.2 59.2 17.3 Sept. 461.4 127.8 76.2 257.4 55.4 2.9 6.3 9.2 29.0 59.8 17.3 58.5 18.9 Oct.. 462.5 127.4 78.5 256.5 56.3 2.9 6.3 10.2 28.5 60.0 17.0 57.5 17.9 Nov. 464.0 127.1 77.1 259.8 58.5 2.9 6.2 11.1 28.9 60.3 16.9 56.2 18.9 Dec.. 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Jan.. 468.2 128.7 78.2 261.2 60.2 2.8 6.3 10.7 29.9 60.5 16.9 52.8 21.1 Feb.. 470.7 131.3 78.2 261.1 58.2 2.8 6.0 10.9 30.7 60.8 17.0 53.6 21.2 Mar. 474.5 131.2 79.5 263.8 59.5 2.8 6.1 11.7 30.4 61.1 17.3 54,9 20.0 471.9 131.1 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 '•137.5 78.1 259.7 53.9 2.6 5.7 11.3 28.8 62.2 19.4 56.9 18.8 Aug. 481.8 141.6 81.1 259.0 53.0 2.6 5.7 11.0 29.2 62.3 20.3 56.0 19.0 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed se- 3 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

OCTOBER 1974 • U.S. GOVERNMENT SECURITIES A 37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) V/ ithin 1 yeai Type of holder and date Total y 1 ea -5 rs y 5 e - a 1 r 0 s 1 ye 0 a -2 rs 0 20 O y v e e a r rs 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_-July 31 268,782 142,245 107,321 34,924 77,200 26,952 17,346 5,040 Aug. 31 272,111 142,901 110,581 32,320 79,366 28,996 14,953 5,896 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—July 31 21,425 2,703 469 2,234 6,989 4,665 5,717 1,351 Aug. 31 21,394 2,581 478 2,103 7,749 4,753 4,673 1,637 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_July 31 78,103 48,171 35,464 12,707 19,967 7,954 1,753 259 Aug. 31 81,131 48,332 38,492 9,840 21,024 9,893 1,423 459 Held by private investors: 1971—Dec. 31 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 180,243 91,063 73,451 17,612 57,649 17,547 9,570 41413 1973_Dec. 31 170,746 93,162 70,227 22,935 50,939 13,241 9,063 4,341 1974—July 31 169,254 91,371 71,388 19,983 50,244 14,333 9,876 3,430 Aug. 31 169,586 91,988 71,611 20,377 50,593 14,350 8,857 3,800 Commercial banks: 1971—Dec. 31 51,363 1144,,992200 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_july 31 40,051 11,266 3,528 7,738 22,720 4,801 1,021 242 Aug. 31 39,371 12,025 3,424 8,601 21,428 4,837 809 277 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—July 31 1,577 326 103 223 700 199 252 101 Aug. 31 1,491 322 104 218 666 177 230 98 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—July 31 4,484 468 130 338 1,021 1,282 1,264 446 Aug. 31 4,512 552 200 352 976 1,310 1,297 377 Nonfinancial corporations: 1971—Dec. 31 66,,002211 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_july 31 4,764 2,743 1,408 1,335 1,635 314 58 15 Aug. 31 4,659 2,931 1,842 1,089 1,322 344 41 19 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—July 31 1,894 399 67 332 895 370 208 25 Aug. 31 1,776 391 49 342 835 330 196 25 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—July 31 8,558 4,925 3,535 1,390 1,611 749 1,031 244 Aug. 31 8,613 5,153 3,932 1,221 1,545 762 883 270 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—July 31 107,926 71,244 62,617 8,627 ->1,662 6,618 6,042 2,357 Aug. 31 109,164 70,614 62,060 8,554 23,821 6,590 5,401 2,734 NOTE.—^Direct public issues only. Based on Treasury Survey of banks, and 734 insurance companies combined, each about 90 per cent; Ownership. (2) 466 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) 503 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) 5,585 commercial banks, 476 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES • OCTOBER 1974 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer UUU...SSS... GGGooovvvttt,,, PPPeeerrriiioooddd aaagggeeennncccyyy TToottaall ssseeecccuuurrriiitttiiieeesss Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com- All 1 year years years 10 years securities securities mercial other 1 dealers brokers banks 1973—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 Aug 3,097 2,407 389 238 64 554 876 789 878 856 Week ending— 1974—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 Sept. 4 3,828 3,292 267 225 45 659 1,104 860 1,205 1,050 11 4,201 3,507 413 237 44 739 1,373 988 1,101 1,062 18 4,040 3,304 380 301 55 675 1,444 937 985 1,440 25 4,256 3,410 483 302 62 631 1,461 1,147 1,017 1,518 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—^The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks UU..SS.. Period m t a A ie t l u s l ri- W y i e t 1 h a r in y 1 ea -5 rs y 5 ea -1 rs 0 y O e 1 v a 0 e r s r aa ss GG gg ee tt ee oo ii cc ee nn uu vv ss cc rr tt ii ,, yy -- PPeerriioodd ssoo AA uurr ll cc ll eess Y N C o e it r w y k w E h ls e e r - e CC tt oo iioo rrpp nn oo ss rr 11 aa -- oo AA tthh ll ee ll rr 1973-_Aug.. 1,788 1,977 -94 -107 12 273 1973—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--Jan.. 3,653 3,210 51 262 130 1,324 1974—Jan 4,802 1,747 1,253 658 1,143 Feb.. 4,081 2,707 537 647 190 1,435 Feb 4,837 1,545 1,501 533 1,257 Mar.. 2,587 2,149 50 287 102 1,045 Mar 3,817 1,196 952 485 1,185 Apr.. 1,536 1,577 -121 62 17 719 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 Aug. 22,,448877 11,,881199 222288 335566 8844 11,,007733 Aug 44,,113388 998888 11,,224488 554488 11,,335544 Week ending— Week ending— 1974—July 3.. 9 -117 18 86 21 972 1974_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 Aug. 7. . 2,027 1,960 -6 78 -5 934 Aug 7.... 3,704 992 1,087 499 1,126 2141. . . 3,300 2,350 344 500 106 1,049 14.... 4,452 1,292 1,427 622 1,111 28. . 2,463 1,661 257 416 129 1,112 21.... 4,513 1,023 1,445 489 1,556 . 2,004 1,199 300 405 100 1,102 28.... 3,986 644 1,098 617 1,628 NOTE.—^The figures include all securities sold by dealers under repur- 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, AUGUST 31, 1974 Cou- Amount Cou- Amount Cou- Amount Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon (millions and maturity rate of dollars) and maturity rate of dollars) and maturity rate of dollars) Federal home loan banks Federal National Mortgage Banks for cooperatives Bonds: Association—Cont. Bonds: - 11/25/74. 8.00 217 Debentures: 3/4/74 - 9/3/74.... 7.15 367 11/25/74... 7.05 1,000 9/10/69 - 9/10/74 7.85 250 4/1/74- 10/1/74... 8.20 350 1/26/71 -2/25/75.... 6.10 250 2/10/71 - 9/10/74 5.65 300 5/1/74-11/4/74... 8.65 315 - 2 2 / / 2 2 5 5 / / 7 7 5 5 . . . . . . . i:4o 4 5 0 0 0 0 9 5 / / 1 10 0 / / 7 7 1 1 - - 1 1 2 2 / / 1 1 0 0/ / 7 7 4 4 6 6 . .4 1 5 0 2 4 5 5 0 0 6 7 / / 3 1 / / 7 7 4 4 - - 1 1 / 2 2 /2 /7 /7 5 4 .. . . . . . 9 8 . . 2 9 5 0 4 40 0 8 7 4/12/73 - 7.15 700 11/10/70 - 3/10/75.... 7.55 300 8/1/74-2/3/75.... 9.45 576 8/25/70 - 5/26/75.';'. 8.05 265 10/12/71 - 3/10/75.... 6.35 600 10/1/73 - 4/4/77... 7.70 200 2/25/74 -5/27/75.... 6.80 300 4/12/71-6/10/75 5.25 500 7/27/70 - 8/25/75... 7.95 300 10/13/70 - 9/10/75.... 7.50 350 7/25/73 -8/25/75.... 7% 500 3/12/73 -9/10/75 6.80 650 Federal intermediate 10/25/73 -8/25/75. 7.15 400 3/10/72 - 12/10/75.... 5.70 500 credit banks - 11/25/75. 6.50 350 9/10/73 - 12/10/75 8.25 300 Bonds: •1111//2255//77"5 . 7.05 600 3/11/71 - 3/10/76 5.65 500 12/3/73 -9/3/74. 8.60 593 5/28/74-11/25/75. 9.10 700 6/12/73 - 3/10/76 7.13 400 1/2/74 - 10/1/74. 7.95 814 6/21/74- 2/25/76... 8.70 400 6/10/71 -6/10/76 6.70 250 2/4/74 - 11/4/74. 8.00 768 8 8 / / 2 2 7 7 / / 7 7 3 1 - - 2 2 / / 2 2 5 5 / / 7 7 6 6 . . . . . . 8% 3 3 0 0 0 0 2 1 / 1 1 / 0 10 /7 /7 2 1 - - 6 9 / / 1 1 0 0 /7 /7 6 6 6 5 . . 1 8 3 5 4 3 5 0 0 0 3 5/ / 1 4 / / 7 7 2 4 - - 1 1 2 /2 /2 /7 /7 5 4 . . . 7 6 . . 1 0 5 5 7 2 8 4 5 0 8/26/74 - 2/25/76. .. 9.20 600 6/12/72-9/10/76 5.85 500 4/1/74- 1/2/75.. 8.15 608 6/22/73 - 5/25/76... 7.20 600 7lll/^J .2//7I L—- 12/10/76^.... 7.45 300 5/1/74-2/3/75.. 8.80 674 11/27/73 -5/25/76.. 7.45 300 12/11/72-12/10/7 6.25 500 6/3/74 -3/3/75.. 9.00 796 7/25/73 -8/25/76... 7.80 500 6/10/74-12/10/76 a8.45 500 7/1/74-4/1/75.. 9.25 811 7/25/74 - 11/26/76 .. 9.55 500 2/13/62 - 2/10/77. 198 8/1/74-5/1/75. . 9.45 766 10/25/73 - 2/25/77.. 7.20 500 9/11/72-3/10/77.. 500 1/3/72-7/1/75.. 5.70 302 6/21/74- 5/25/77... 8.70 500 3/11/74-3/10/77... 7.05 400 3/1/73 - 1/5/76.. 6.65 261 6/25/71 -5/25/77... 6.95 200 12/10/70 - 6/10/77. 6.38 250 7/2/73 - 1/3/77.. 7.10 236 4/12/73 - 8/25/77... 7.15 300 5/10/71 -6/10/77... 6.50 150 7/1/74-4/4/77.. 8.90 321 2 5 / / 2 2 6 8 /7 /7 3 4 - - 8 1 /2 1/ 5 2 / 5 7 / 7 7 . 7 .. . . 863.840 6 3 0 0 0 0 9 1 / 2 1 / 0 1 / 0 7 / 1 7 3 - 9 -6 /1 /1 2 0 /7 /7 7 7 .. . 7 6. . 8 2 8 0 5 3 0 0 0 0 1/2/74- 1/3/78.. 7.10 406 11/27/73 - 11/25/77. 7.45 300 9/10/73 - 9/12/77. 7.85 400 8/26/74- 11/25/77. . 9.15 700 7/10/73 - 12/12/77 7.25 500 Federal land banks 9/21/73-5/25/78... 7.60 500 10/1/73 - 12/12/77 7.55 500 Bonds: 8/26/74- 11/27/78.. 9.10 500 6/10/74 - 3/10/78 8.45 650 4/20/71 - 10/21/74.... 5.30 300 6 5/ / 2 2 8 1 /7 /7 4 4 - - 2 5 / /2 2 5 6 / / 7 7 9 9 . . . . . . 88.%65 4 6 0 0 0 0 6 3 / / 1 1 2 1 / / 7 7 3 4 - - 6 9 / / 1 1 2 1 / /7 7 8 8 7 7 . . 1 1 5 5 6 5 0 5 0 0 4 2 / / 2 2 3 0 / / 7 7 3 0 - - 1 1 /2 / 0 2 / 0 75 /7 5.... 7.15 2 3 2 0 0 0 7/25/74 9.50 500 10/12/71 - 12/11/78.... 6.75 300 4/20/65 - 4/21/75.... 200 3/25/70 - 2/25/80... 7.75 350 7/10/74- 12/11/78 8.95 300 7/20/73 -4/21/75 300 2/25/74 -- 2/25/80.... 7.05 300 12/10/73 -3/12/79 7.25 500 2/15/72-7/21/75 425 10/15/70 - 10/15/80.. 7.80 200 9/10/73 - 6/11/79 7.85 300 4/22/74-7/21/75 300 10/27/71 - 11/27/81. 6.60 200 6/12/72-9/10/79 6.40 300 7/20/71 - 10/20/75... 300 4/12/73 --5/25/83.... 7.30 185 12/10/71 - 12/10/79.... 6.55 350 10/23/73 - 10/20/75.. 362 5/28/74- 5/25/84.... 300 2/10/72 - 3/10/80 6.88 250 4/20/72 - 1/20/76.... 300 10/25/73 - 11/26/93.. 400 6/10/74-6/10/80 8.50 450 7/22/74 - 1/20/76 650 2/16/73 -7/31/80 5.19 1 2/21/66 - 2/24/76... 123 Federal Home Loan 2/16/73 -7/31/80 3.18 9 1/22/73 - 4/20/76.... 373 Mortgage Corporation 10/1/73 -9/10/80 7.50 400 4/22/74-4/20/76.... 400 Bonds: 1/16/73 - 10/30/80 4.46 5 7/20/66 - 7/20/76... 150 5/29/73 - 8/25/76 7.05 400 12/11/72- 12/10/80 6.60 300 1/21/74 - 7/20/76.... 360 5/11/72 - 2/25/77 6.15 350 6/29/72- 1/29/81 6.15 156 4/23/73 - 10/20/76... 450 11/19/70- 11/27/95..., 8.60 140 3/12/73-3/10/81 7.05 350 4/22/74 - 4/20/77.... 565 7/15/71 - 8/26/96 7.75 150 4/18/73-4/10/81 6.59 26 7/20/73 -7/20/77.... 550 5/11/72-5/26/97 7.15 150 3/21/73-5/1/81 4.50 18 10/20/71 - 10/20/77.. 300 3/21/73-5/1/81 5.77 2 2/20/63 -2/20/73-78. 148 Federal National Mortgage 1/21/71 - 6/10/81 7.25 250 5/2/66 - 4/20/78.... 150 Association— 9/10/71 -9/10/81 7.25 250 7/20/72 - 7/20/78... 269 Secondary market 3/11/74-12/10/81 7.30 250 7/22/74 - 7/20/78.... 350 operations 7/10/74-3/10/82 8.88 300 10/23/73 - 10/19/78.. 550 Discount notes 3,892 6/28/72-5/1/82 5.84 58 2/20/67 - 1/22/79.... 285 Capital debentures: 2/10/71 - 6/10/82 6.65 250 1/21/74- 1/22/79.... 300 4/1/70 - 4/1/75.. 8.00 200 9/11/72-9/10/82 6.80 200 9/15/72 - 4/23/79.... 235 9/30/71 - 10/1/96. 4.38 248 12/10/73 - 12/10/82. 7.35 300 2/20/74 - 7/23/79.... 389 10/2/72- 10/1/97. 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 Mortgage-backed bonds: 11/10/71 -9/12/83. 6.75 250 7/20/73 -7/21/80.... 250 6/1/70 - 6/2/75. 8.38 250 4/12/71 --<6• /11/84. 6.25 200 2/23/71 -4/20/81.... 224 3/14/73-1/15/81. 3.58 53 12/10/71 - 12/10/84 6.90 250 7/22/74 - 7/20/81.... 265 3/14/73 - 1/15/81. 5.48 5 3/10/72 - 3/10/92 7.00 200 4/20/72 - 4/20/82.... 200 6/21/73- 7/1/82.. 5.85 71 6/12/72 - 6/10/92 7.05 200 4/23/73 - 10/20/82... 239 6/21/73- 7/1/82.. 5.92 35 12/11/72- 12/10/97 7.10 200 10/23/73 - 10/20/83. . 300 3/1/73-8/31/84... 5.50 10 3/1/73 - 10/31/85. 5.49 21 3/1/73 - 3/1/86... 5.74 81 9/29/70 - 10/1/90 8.63 200 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at top of p. A-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERALLY SPONSORED CREDIT AGENCIES • OCTOBER 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 Mortto 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) 197 0 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 197 1 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 197 2 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_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 112116 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 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 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 Aug. 19,653 2,052 80 18,759 1,935 2,495 28,022 26,639 3,026 2,622 8,548 8,380 12,941 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 thess 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 reservee Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FN MA 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 PPPeeerrriiioooddd amount deliv- Special ered 3 Total G o e b a n l l e i- r- R n e u v e e - HAAi G l U o o a .S v n t s . , State di S a s t n t a r d t ic , t 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 tie ti s l- 4 H in o g u s s - V a e a n t i e d s* r - O p p o t u h s r e e - s i gations auth. 1970 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5.214 2,068 9,293 1972 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 1973 23,970 12,257 10,632 1,022 58 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 1973—May... 1,939 825 1,106 8 291 945 703 1,775 299 233 430 224 588 June... 2,152 1,025 861 26i 5 189 1,082 881 2,144 542 102 643 334 523 July... 2,028 1,458 564 6 516 363 1,149 2,001 391 231 366 3 1,009 Aug.... 1,657 1,067 588 2 529 498 630 1,602 311 30 352 290 618 Sept... 1,750 721 741 285 2 236 838 675 1,653 327 66 579 384 298 Oct.... 2,313 1,344 964 6 337 842 1,135 2,163 299 142 412 251 1,060 Nov... 2,257 866 1,383 9 243 1,247 766 1,929 356 42 596 247 687 Dec.... 2,089 919 995 173 1 450 1,022 616 1,954 372 165 487 344 582 1974—Jan.... 2,198 1,402 794 2 208 823 1,163 2,130 595 36 373 56 1,070 Feb.... 1,934 1,155 778 1 473 523 938 1,869 449 53 612 39 717 Mar... 1,982 1,160 590 227 5 346 776 856 1,868 359 258 349 241 660 Apr.... 2,364 1,694 660 10 360 849 1,155 2,325 505 9 595 178 1,038 May... 2,211 1,130 1,075 6 443 1,018 745 2,153 390 107 685 7 964 1 Only bonds sold pursuant to 1949 Housing Act, which are secured * 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

OCTOBER 1974 • SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues ^ Noncorporate Corporate PPPeeerrriiioooddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. .. 22 aa GG gg UU ee oo .. nn SS vv cc tt .. yy ,, 33 aa (( nn UU SS dd .. tt SS aa lloo tt .. ee )) cc 44 aa ll OOtthheerrss TToottaall Total P o u ff b e l r i e c d ly 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—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. « 3,392 2,956 2,115 842 152 284 Feb 222222,,,,,,666666888888777777 222222,,,,,,111111000000111111 111111,,,,,,666666888888444444 444444111111888888 222222666666888888 333333111111888888 Mar 333333,,,,,,111111444444111111 222222,,,,,,333333888888444444 222222,,,,,,000000222222000000 333333666666444444 333333999999555555 333333666666111111 Apr 222222,,,,,,999999555555222222 222222,,,,,,111111444444000000 111111,,,,,,555555999999444444 555555444444666666 333333555555666666 444444555555666666 May 333333,,,,,,111111666666666666 222222,,,,,,999999555555888888 222222,,,,,,333333555555000000 666666000000999999 666666555555 111111444444333333 June 222222,,,,,,999999444444444444 222222,,,,,,444444111111777777 111111,,,,,,999999333333999999 444444777777888888 111111111111222222 444444111111555555 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u a s n 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—June., 703 25 133 89 183 1,099 497 303 29 337 181 July.. 364 169 139 112 250 1 651 269 244 60 223 151 Aug.. 230 49 149 129 83 15 419 90 320 5 182 136 Sept.. 270 78 149 96 140 2 334 252 228 16 244 106 Oct.. . 472 52 63 147 114 342 608 633 46 734 193 Nov.. 383 93 61 92 241 584 496 296 499 692 122 Dec.. 485 18 145 285 226 569 319 350 27 693 115 1974—Jan. 866 29 135 125 127 1,192 249 142 4 493 30 Feb.. 353 36 51 143 5 536 293 372 25 784 87 Mar.. 419 161 40 71 76 850 446 310 21 690 58 Apr.. 1,113 9 209 56 6 446 685 279 5 86 57 May., 860 15 329 72 44 837 75 655 3 235 44 June. 406 44 311 138 5 16 859 288 352 1 484 39 1 Gross proceeds are derived by multiplying principal amounts or 6 Beginning Jan. 1974 noncorporate figures are no longer published by number of units by offering price. the SEC. 2 Includes guaranteed issues. 3 Issues not guaranteed. NOTE.—Securities and Exchange Commission estimates of new issues * See NOTE to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organzations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 SECURITY ISSUES • OCTOBER 1974 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers i PPeerriioodd All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 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 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 1973—11 9,140 2,470 6,669 5,769 1,664 4,106 3,370 806 2,564 Ill 6,532 2,150 4,382 , 4,521 1,579 2,941 2,012 571 1,441 IV 10,711 4,378 6,334 7,013 3,786 3,227 3,698 591 3,107 1974_IJ> 8,973 2,031 6,942 ' 6,810 1,442 5,367 2,163 588 1,575 IIP 9,637 2,048 7,589 ; 7,847 1,584 6,263 1,790 465 1,326 Type of issues Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n ot 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 197 1 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 197 2 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 197 3 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1973—11. 632 -2 119 327 327 7 1,136 1,276 842 562 1,049 395 Ill 165 450 108 247 414 -44 1,217 557 752 77 284 154 IV. -131 147 -162 460 176 -13 1,068 1,506 1,051 575 1,225 431 1974—IIIPf. 906 324 -11 363 -37 -35 2,172 827 675 76 1,662 20 1,921 -12 698 213 -13 12 1,699 1,038 1,080 -7 877 82 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 oflferings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- NOTE.—^Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) YYeeaarr MMoonntthh 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—Aug.. 239 432 -193 49,553 4,567 44,986 1963 2,460 1,504 952 25,214 1,341 23,873 Sept... 330 395 -65 52,322 4,641 47,681 1964 33,,440044 1,875 1,528 2299,,111166 1,329 2277,,778877 Oct... 305 559 -254 51,952 4,168 47,784 Nov... 502 542 -40 45,814 4,126 41,688 1965 4,359 1,962 2,395 35,220 1.803 33,417 Dec... 349 392 -43 46,518 44,,000022 4422,,551166 1966 4,671 2,005 2,665 34,829 2,971 31,858 1967 44,,667700 22,,774455 1,927 4444,,770011 22,,556666 4422,,113355 1974—Jan.. . 334 325 9 47,094 4,226 42,863 Feb... 215 303 -88 45,958 4,447 41,511 1968 6,820 3,841 2,979 52,677 3,187 49,490 Mar... 297 346 -49 44,423 4,406 40,017 1969 6,717 3,661 3,056 48,291 3,846 44,445 Apr... 262 327 -65 42,679 4,426 38,253 1970 4,624 22,,998877 1,637 4477,,661188 33,,664499 4433,,996699 May.. 323 320 3 41,015 4,389 36,626 June.. 337 276 61 40,040 4,461 35,579 1971 5,145 4,751 774 56,694 3,163 53,531 JuJy. . 442 352 90 37,669 4,609 33,060 1972 4,892 6,563 -1,671 59,831 3,035 56,796 AAuugg...... 446 339 127 35,106 44,,995533 30,153 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 members, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 a BUSINESS FINANCE A 43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b ta e ro x fo f e i r t s e s c ta o I x n m e - e s P t a a r f o x t f e e i r s ts d C d e i a n v s d i- h s t U r p i r b n o u d f t i i t e s s - d co c a n a t l s i l p o o u i n w t m a - l p - Quarter P b ta e ro x fo f e i r t s e s c ta o I x n m e - e s P t a a r f o x t f e e i r t s s d C d e a i n v s d i- h s t U r p i r b n o u d f t i i t s e s - d co c a n t a i l s o l p o u n i w t m a - l p ances! 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—I.. 120.4 48.9 71.5 28.7 42.8 69.2 1972'" 99.2 41.5 57.7 27.3 30.3 66.3 124.9 50.9 74.0 29.1 44.9 70.8 1973'- 122.7 49.8 72.9 29.6 43.3 71.2 122.7 49.9 72.9 29.8 43.1 71.6 IV^. 122.7 49.5 73.2 30.7 42.5 73.1 1974_LR_. 138.7 53.6 85.1 31.6 53.5 74.1 II. . . 143.5 57.9 85.6 32.5 53.0 75.7 1 Includes depredation, 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 NNNeeettt Notes and accts. Notes and accts. EEEnnnddd ooofff pppeeerrriiioooddd wwwooorrrkkkiiinnnggg UU..SS.. receivable payable AAccccrruueedd cccaaapppiiitttaaalll TToottaall CCaasshh ss GG ee oo ccuu vv rr tt ii ,, -- II tt nn oo vv rrii ee ee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U o . v S t . . i Other G U o . v S t . . i Other ttaaxxeess 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—11 215.0 536.5 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 II 257.4 673.3 62.2 10.4 3.4 278.7 269.7 48.8 415.8 4.7 268.4 17.4 125.3 1 Receivables from, and payables to, the U.S. Govt, exclude amounts NOTE.—Based on Securities and Exchange Commission estimates. offset against each other on corporations* books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable d N ur o a n b - le Mining R ro a a i d l- Air Other Electric and G a o s th er n C i o ca m ti m on u s - Other 1 A (S .R .A .) . 197 1 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 197 2 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 197 3 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 .62 2.72 4.55 86.79 II .. 22.01 3.71 3.92 .61 .48 .73 .39 3.61 2.95 4.98 87.12 III... 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 ..6508 2.87 4.94 96.19 II... 24.73 4.65 4.51 .71 .46 .72 .43 3.91 3.27 5.40 97.76 III.. 25.04 4.84 4.78 .69 .48 .57 .44 4.04 ..8772 3.19 5.24 100.90 IV.. 28.48 5.84 5.59 .71 .56 .60 .47 4.54 3.53 5.83 103.74 .68 1974—1... 24.10 4.74 4.75 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II.. 28.16 5.59 5.69 .78 ..6640 .61 .49 4.56 ..8756 3.60 5.46 111.40 III 2 28.02 5.78 5.64 .77 .49 .70 4.49 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 • OCTOBER 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- III IV 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 Multifamily i... 58,023 67,367 76,585 81,130 83,521 85,394 86,760 88.425 Commercial 82,292 92,333 107,673 115,150 119,504 123,915 127,228 131,275 Farm 31,236 32,858 35,438 37,715 38,589 39,339 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 Multifamily 1 45,796 52,498 59,293 62,429 63.566 64,723 65,555 66,750 Commercial 68,697 78,345 92,387 99,364 103,429 107,078 109,891 113,338 Farm 10,119 9,856 10,522 11,026 11,295 11,486 11,518 11,831 Commercial banks'^'. 75,275 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 Multifamily i 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 Multifamily 1 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 Multifamily 1.. 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 Multifamily 1 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 34,806 35,617 36,511 Farm 5,649 5,601 5,679 5,727 5,858 5,987 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 Multifamily 1 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 Multifamily 1 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 Administrations 3,505 3,389 3,338 3,293 3,446 3,476 3,514 3,617 1- to 4-family 2,771 2,517 2,199 1,998 2,046 2,013 1,964 1,978 Multifamily 1 734 872 1,139 1,295 I,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 Multifamily 1 321 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 2,472 2,951 Multifamily i 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 Multifamily 1., 195 277 323 364 434 472 INDIVIDUALS AND OTHERS 3. 62,805 66,162 69,035 70,964 71,944 73,890 73,740 73,540 1- to 4-family 26,865 21,201 27,184 27,503 27,903 28,739 21,m 26,939 Multifamily 1 8,868 10,314 11,206 11,573 II,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

OCTOBER 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 1 in- guar- chases Sales during stand- Total VA ven- chases Sales during standsured 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—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 218011 400 1,037 May. 25,917 17.725 6,794 821 1,145 9,475 2,986 1,827 1,159 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 Aug.. 28,022 18,526 7,704 868 1,202 9,115 3,451 1,886 1,565 155 81 3,500 1 Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC NOTE.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA*s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms 1 YYiieellddss ((ppeerr cceenntt)) iinn insured pprriimmaarryy mmaarrkkeett loans—yield Period in private CCoonnttrraacctt FFeeeess aanndd LLooaann//pprriiccee PPuurrcchhaassee LLooaann secondary rraattee ((ppeerr cchhaarrggeess MMaattuurriittyy rraattiioo pprriiccee ((tthhoouuss.. aammoouunntt markets cceenntt)) ((ppeerr cceenntt)) 22 ((yyeeaarrss)) ((ppeerr cceenntt)) ooff ddoollllaarrss)) ((tthhoouuss.. ooff FHLBB HUD ddoollllaarrss)) series 3 series 4 1970. 8.27 1.03 25.1 71.7 35.5 25.2 8.44 8.52 9.03 1971. 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972. 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.52 1973. 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 1973—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 June.., 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 Aug. P. 8.82 1.36 27.1 76.7 40.6 30.6 9.04 9.60 10.33 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 prevailmg 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 conmiissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed precosts 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 • OCTOBER 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 Apr. 22 May 6 May 20 June 3 June 17 July 1 July 15 July 29 Aug. 12 Aug. 26 Sept. 9 Sept. 23 Amounts (millions of dollars): Govt.-underwritten loans Offered 1 333.6 256.0 217.7 85.1 38.5 271.7 379.5 151.6 207.9 309.6 176.1 57.2 Accepted 168.5 111.1 82.8 71.5 31.5 103.0 193.5 73.4 97.7 93.0 98.6 38.2 Conventional loans Offered 1 80.3 74.3 41.4 26.1 21.6 39.7 60.4 36.8 45.8 59.0 46.5 22.1 Accepted 40.9 29.8 23.6 20.5 11.2 23.6 29.9 18.1 19.4 24.9 30.9 19.0 Average yield (per cent) on shortterm commitments 2 Govt.-underwritten loans 9.18 9.34 9.48 9.54 9.54 9.65 9.90 9.98 10.12 10.38 10.59 10.56 9.21 9.44 9.63 9.70 9.69 9.76 9.90 10.02 10.16 10.42 10.71 10.66 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding requirepaid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Dec. 31, Dec. 31. 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 FVHAA 8 3 . . 3 0 8 3 . . 5 2 8 3 . . 5 2 8 3 . . 5 2 (3 8 . . 3 4 8 3. . 3 2 8 3 . . 3 3 Mutual savings banks. 28.2 28.6 28.7 28.7 28.6 28.4 28.8 FVHAA 1 1 6 2 . . 1 1 1 1 6 2 . . 0 6 1 1 5 2 . . 9 8 1 1 5 2 . . 8 9 1 1 5 2 . . 7 9 1 1 5 2 . . 5 9 1 1 5 3 . . 7 1 Savings and loan assns 24.3 28.9 V F A H 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 8.8 10.7 NOTE.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total PPeerriioodd oo NN ff uu ll mm ooaa bb nn ee ss rr ( c m o ( a i d m l m l o i m o l o la n u it r s n t s e t ) d o f ( o th f a o m L d u o o o s a l u a l n a n n r t d s s ) ( C p in o e r t n r e a t r c 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 o r - a v a t c a i n e o l - u n e t) C (p a t e p io r it n a c l e r iz a n a t t e ) - co D r v a e e t r i b o a t g e P co e n r s c t e a n n t t 1970 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 1971 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1972 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1972—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 1973—Jan 134 397.4 2,966 8.66 23/6 74.7 9.6 1.32 9.9 Feb 202 459.9 2,277 8.60 23/4 75.0 9.7 1.33 9.9 Mar 198 504.3 2,547 8.61 22/7 74.7 9.7 1.33 9.8 Apr 200 459.0 2,295 8.60 23/9 75.5 9.8 1.32 9.8 May 205 492.1 2,401 8.68 23/3 74.8 9.6 1.28 9.9 June 229 541.8 2,366 8.65 23/7 73.7 9.5 1.31 9.8 See NOTE on p. A-45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • CONSUMER CREDIT A 47 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment EEnndd ooff ppeerriioodd Total Other Home Charge accounts Auto- consumer improve- Personal Single- Service Total mobile goods ment loans Total payment credit ppaappeerr ppaappeerr loans 1 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—Aug 171,978 140,810 50,232 43,505 7,009 40,064 31,168 13,111 6,475 2,130 9,452 Sept 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 6,229 2,106 9,519 Oct 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 6,554 2,036 9,495 Nov 176,969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 6,761 2,024 9,623 Dec 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1974—Jan 178,686 146,575 50,617 47,303 7,303 41,352 32,111 13,117 6,894 1,981 10,119 Feb 177,522 145,927 50,386 46,781 7,343 41,417 31,595 13,159 6,136 1,882 10,418 Mar 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 6,097 1,842 10,677 Apr 179,495 147,047 50,606 47,017 7,573 41,851 32,448 13,315 6,556 1,878 10,699 May 181,680 148,852 51,076 47,588 7,786 42,402 32,828 13,331 6,948 1,999 10,550 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 Aug 187,369 154,472 52,772 49,322 8,214 44,164 32,897 13,202 6,983 2,282 10,430 1 Holdings of financial institutions; holdings of retail outlets are in- NOTE.—Consumer credit estimates cover loans to individuals for cluded in "Other consumer goods paper." household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see "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 Noninstalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve- Single- Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit 196 5 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 196 6 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 196 7 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 196 8 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 196 9 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 197 0 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 197 1 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 197 2 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 197 3 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1973—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 Aug. 84,982 73,302 19,511 12,344 7,681 7,491 6,541 4,409 2,312 13,013 11,680 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 • OCTOBER 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 1 dealers outlets Mobile Other loans homes 196 5 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 196 6 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 196 7 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 196 8 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 196 9 27,846 9,412 5,775 174 12,485 13,722 12,028 1,694 13,116 250 12,866 197 0 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 197 1 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 197 2 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 197 3 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1973_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 Aug. 38,943 12,267 3,539 4,680 1,097 17,360 24,677 21,402 3,275 17,550 299 17,251 1 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.) New Used 1972—July.. 9.97 10.77 12.39 12.73 17.25 11.84 16.57 12.25 19.38 21.26 A Se u p g t . . . . 1 1 0 0 . . 0 0 2 2 1 10 0 . . 6 7 7 1 1 1 2 2 . . 4 4 7 7 1 1 2 2 . . 7 7 2 0 1 17 7 . .2 25 5 1 1 1 1 . . 8 8 5 8 1 16 6 . . 7 6 1 2 ilAi' 'i9A5 'ii'.os' O No ct v . . . . . 1 1 0 0 . . 0 0 1 2 1 10 0 . . 8 6 5 6 1 1 2 2 . . 3 4 8 4 1 1 2 2 . . 6 7 3 0 1 1 7 7 . . 2 2 3 3 1 11 1 . . 8 8 9 6 1 16 6 . . 7 6 8 7 'l2Al' 'i8!96' 'iiiii' 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 F M e a b r . . . . 1 1 0 0 . . 0 0 5 4 1 1 0 0 . .6 7 7 6 1 1 2 2 . .4 5 8 1 1 1 2 2 . . 7 7 6 1 1 17 7 . . 1 1 9 6 1 1 1 1. . 8 8 5 6 1 1 6 6 . . 2 3 0 2 'i2!54' 'i8;92' id'79' 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 J J u u n ly e . . . 1 1 0 0 . . 0 1 8 0 1 1 0 0 . . 5 8 7 4 1 1 2 2 . . 5 5 7 1 1 12 2 . . 7 7 5 8 1 1 7 7 . . 2 2 4 1 1 1 1 2 . . 9 0 4 2 1 16 6 . . 7 6 5 1 'i2!77" "l8.93 'ioiss' Aug.. 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept.. 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 O No ct v . . . . . 1 1 0 0 . . 5 4 3 9 1 1 0 1 . . 9 1 8 9 1 1 2 2. . 7 8 5 0 1 1 3 2 . . 0 9 2 4 1 1 7 7 . . 2 2 3 3 1 1 2 2 . . 3 4 4 0 1 1 7 7 . . 1 2 1 1 u.ii 'isji •26.65' Dec.. 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan... 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 F M e a b r . .. . , 1 1 0 0 . . 5 5 3 0 1 1 1 0 . . 2 9 5 2 1 1 2 2 . . 8 8 2 2 1 1 3 3 . . 0 0 2 4 1 17 7 . . 2 2 3 4 1 1 2 2 . . 3 2 3 9 1 1 6 6. . 6 6 9 2 'n'M' 'i8'.69' '26!57' A M p a r y .. . 1 1 0 0 . .6 5 3 1 1 1 1 0 . . 0 9 7 6 1 1 2 2 . . 8 8 1 8 1 1 3 3 . . 0 1 0 0 1 1 7 7 . . 2 2 5 5 1 1 2 2 . . 2 3 8 6 1 1 6 6 . . 7 8 6 6 13.07 18.90 >•20.47 J J u u n ly e . . . •^1100..8916 1 1 1 1 . . 2 4 1 6 1 1 3 3 . .0 1 1 4 1 1 3 3 . .4 2 2 0 > 1 •1 7 7 .2 .2 3 0 1 12 2 . . 5 5 8 0 ' ' • •1 1 7 7 . . 1 0 8 6 'ii'ii' 'i9.'26' '26 .'59' Aug.. 11.15 11.71 13.10 13.45 17.17 12.67 17.32 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

OCTOBER 1974 • CONSUMER CREDIT A 49 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) Type Holder Period Total Automobile Other Home Personal Commercial Finance Other Retail ppaappeerr consumer improve- loans banks ccoommppaanniieess 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 20,240 112,158 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—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 Aug 14,394 3,887 . 5,993 388 4,126 6,034 3,476 2,290 2,594 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—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 Aug 12,882 3,443 5,444 309 3,686 5,463 3,166 1,851 2,402 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—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 Aug 1,512 444 549 79 440 571 310 439 192 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. • OCTOBER 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro- aver- Grouping p ti o o r n - age Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July AugP Sept.* Total index 100.0 125.6 126.8 127.0 127.5 126.5 125.4 124.6 124.7 124.9 125.7 125.8 125.6 125.1 125.5 Products, total 62.21 123.4 124.3 124.3 125.3 124.0 122.9 122.4 122.6 122.7 123.8 124.0 124.1 123.0 122.7 Final products 48.95 121.3 122.4 122.7 123.7 122.6 121.2 120.6 121.0 120.8 122.4 122.6 123.0 121.7 121.5 Consumer goods 28.53 131.7 132.3 132.6 133.5 131.3 129.2 128.3 128.5 128.5 129.7 130.2 130.1 129.4 128.4 Equipment 20.42 106.7 108.5 108.9 110.1 110.1 109.8 109.9 110.1 110.1 112.2 112.0 112.9 111.0 111.8 Intermediate products 13.26 131.1 131.0 130.6 131.1 129.1 129.2 129.1 128.2 129.4 129.2 128.9 128.0 128.1 127.5 Materials 37.79 129.3 131.3 131.1 131.5 130.7 129.7 128.3 128.8 128.7 129.1 128.8 128.0 128.7 129.8 Consumer goods Durable consumer goods 7.86 139.0 138.2 137.3 138.5 134.6 128.2 126.4 128.5 130.9 132.8 133.5 132.0 130.4 128.0 Automotive products 2.84 136.8 129.8 131.4 133.7 120.6 108.0 106.6 108.0 113.8 116.1 117.3 114.9 116 112.4 Autos 1.87 125.4 118.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 100. 99.6 101.5 103.1 99.6 Auto parts and allied goods.... .97 158.9 151.8 148.4 150.9 147.8 142.6 145.5 149.8 144.7 146. 151.3 140.5 141.0 136.9 Home goods 5.02 140.3 142.9 140.9 141.2 142.5 139.6 137.5 140.1 140.6 142. 141.7 138.5 136.9 Appliances, TV, and radios 1.41 144.8 149.4 143.4 140 147.9 138.4 131.9 135.8 135.2 137. 139.0 132.2 Appliances and A/C .92 156.9 159.8 159.3 154.7 172.2 153.9 148.2 150.0 148.6 152.6 151.7 145.6 TV and home audio .49 Carpeting and furniture 1.08 iso.'o i53!3 i5i9 152*. 7 iso.i i53.'5 i53.'3 154/5 158.2 i57!4 157.2 i55.'7 i55.9 Misc. home goods 2.53 133.6 134.8 134.1 136.8 136.3 134.4 134.2 136.3 136.0 138.3 137.4 137.3 134.8 134.8 Nondurable consumer goods 20.67 129.0 130.1 130.8 131.5 130.2 129.5 129.1 128.7 127.6 128.5 129.0 129.3 129.0 128.5 Clothing 4.32 116.0 118.0 116.8 117.3 120.3 116.3 114.5 112.0 106.2 107.0 108.9 108.6 Consumer staples 16.34 132.4 133.2 134.5 135.2 132.8 133.0 133.0 133 133.2 134.2 134.3 134.8 iu'.9 134.3 Consumer foods and tobacco... 8.37 122.2 122.2 123.3 126.5 125.0 126.9 125.9 125.7 123.9 124.7 124.7 125.5 125.4 125.4 Nonfood staples 7.98 143.1 144.8 146.2 144.3 141.1 139.4 140.4 140.8 143.1 144.3 144.4 144.6 145.0 143.8 Consumer chemical products. 2.64 153.3 153.4 156.2 154.9 156.7 157.8 159.0 160.3 159.7 157.5 156.8 154.6 155.0 Consumer paper products.... 1.91 121.3 124.4 122.5 123.6 120.5 119.4 119.9 119 119.4 124.7 123.9 124.4 125.5 Consumer fuel and lighting.. 3.43 147.5 149.7 151.9 147.8 140.7 136.7 137.4 138.2 143.7 145.1 146.0 148 148.1 Residential utilities 2.25 156.8 160.9 161.9 158.0 149.8 145.6 148.6 149.0 151.6 153.2 155.3 157.8 Equipment Business equipment 12.74 122.6 125.8 126.2 127.8 126.9 126.8 127.3 127.6 127.9 130.2 130.2 131.2 128.0 128.8 Industrial equipment 6.77 120.1 124.1 124.5 125.6 124.9 125.3 126.6 126.8 127.6 129.6 129.0 129.8 130.0 130.0 Building and mining equip. 1.45 120.4 123.7 124.7 126.0 126.0 128.5 130.3 131.3 133.5 135.0 137.4 136.3 136.9 135.4 Manufacturing equipment. 3.85 113.0 117.3 117.3 118.2 118.5 119.3 120.6 121.1 122.1 124.1 121.9 124.0 123.6 124.0 Power equipment 1.47 138.5 142.3 143.0 144.6 140.3 138.0 138.7 137.3 136.6 138.4 139.0 138.9 139.4 140.0 Commercial, transit, farm eq., 5.97 125.5 127.7 128.1 130.3 129.2 128.5 128.2 128.7 128.2 130.9 131.5 132.6 125.7 127.4 Commercial equipment.... 3.30 135.0 138.2 140.1 141.3 139.3 139.8 139.8 140.8 140.4 141.5 142.7 143.7 134.0 136.0 Transit equipment 2.00 109.8 109.6 109.8 111.4 111.1 109.5 109.3 109.4 106.7 110.2 110.4 111.4 107.3 110.8 Farm equipment .67 125.1 129.4 123.5 132.4 133.4 129.2 126.0 126.1 131.2 140.2 140.6 141.4 140.0 Defense and space equipment. 7.68 80.2 79.8 80.0 80.9 81.9 81.4 80.9 81.0 80.6 82.2 81.7 82.6 83.0 83.6 Military products 5.15 80.3 79 79.3 80.0 81.3 80.6 80.2 80.5 79.9 81.2 79.7 81.4 82.0 82.8 Intermediate products Construction products 5.93 134.2 134.9 134.3 133.7 131 133.0 131.3 129.6 130.8 130.8 129.6 128.2 127.5 127.0 Misc. intermediate products. 7.34 128.6 128.1 127.5 129.0 127.4 126.3 127.4 127.5 128.2 127.9 128.4 127.8 128.7 Materials Durable goods materials 20.91 130.1 132.3 132.2 133.0 132 129.8 127.3 127.2 127.3 128.3 127.5 126.0 128.6 130.3 Consumer durable parts 4.75 127.8 129.9 128.2 128.4 121.0 113.0 109.3 110.6 112.5 114.7 114.1 115.2 117.3 117.2 Equipment parts 5.41 119.3 122.1 122.7 125.8 125 123.9 122.6 121.6 120 122 122.1 120.8 126.2 125.0 Durable materials nec 10.75 136.5 138.7 139.0 138.7 141 140.0 137.6 137.5 137 137 136.2 133 134.8 138.8 Nondurable goods materials 13.99 129.1 130.3 130 130.7 129.2 131. 131.1 131.9 131 130.9 131.3 131.0 130.3 129.9 Textile, paper, and chem. mat.. 8.58 139.8 141.9 141.4 142.4 140.1 143. 141.7 143.1 143.9 143 143.6 143 142.8 142.0 Nondurable materials n.e.c 5.41 112.2 112.0 112 112.1 111.9 111. 114.3 114.7 112.7 111.4 111.9 111.0 110.3 110.7 Fuel and power, industrial 2.89 123.9 128 126.9 124.9 123.1 121. 122.5 122.6 123 124.7 126.3 127.7 123.5 126.8 Supplementary groups Home goods and clothing. 9.34 129.0 131 129.8 130.2 132.4 128.8 126.9 127.0 124.6 126.0 127.1 126.4 123.6 122.8 Containers 1.82 139.9 139.8 141 142.3 141.0 148.4 144.3 151.4 147.0 141 141 142 141.4 Gross value of products in market structure (In bUlions of 1963 doUars) Products^ total 286.3 449.8 449.8 452.6 456.9 449.1 445.4 442.5 443.9 445.4 449.5 449.7 447.4 445.7 444.6 Final products 221 346.1 346.3 349.7 353.3 346.9 342.5 339.9 342.3 342.9 347.2 347 346.6 344.1 343.7 Consumer goods 156.3 239.7 239.0 241 243.6 237.8 233.6 230.6 232.7 233.8 235.9 236.6 235.3 234.9 232.8 Equipment 65 106.4 107.3 108 109.5 109.0 108.9 109.1 109.4 109.0 111 111 111.4 109.4 110.7 Intermediate products 64.9 103.7 103.5 103.1 103.6 102.5 103.1 102.6 101.9 102 102.2 102.0 100.8 101.6 100.6 For NOTE see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 o INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro- Grouping p ti o o r n - age Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.P Sept." Manufacturing 88.55 125.2 126.3 126.4 127.4 126.4 125.3 124.5 124.6 124.8 125.7 125.6 125.2 124.7 125.5 Durable 52.33 122.1 123.3 123.5 124.3 123.1 121.1 119.4 120.4 120.7 122.1 122.1 121.6 120.5 121.4 Nondurable 36.22 129.6 130.7 130.4 131.3 131.2 131.4 131.5 130.9 130.4 130.9 130.8 130.4 130.5 131.2 Mining and utilities. 11.45 128.9 131.3 131.5 130.6 126.9 125.4 126.9 127.3 127.8 128.0 128.1 128.8 128.0 128.9 Mining 6.37 110.2 111.8 111.9 111.3 110.4 109.9 111.7 112.2 111.3 111.0 110.2 110.0 107.6 109.7 Utilities 5.08 152.3 155.8 156.2 154.6 147.6 144.9 146.1 146.5 148.7 149.2 1.50.6 152.4 153.4 153.1 Durable manufactures Primary and fabricated metals. 12.55 128.8 129.5 130.6 131.0 130.5 130.4 127.6 128.2 127.5 128.1 .128.4 127.7 126.5 128.8 Primary metals 6.61 127.1 127.8 128.7 128.9 130.7 129.5 125.0 125.3 124.0 124.6 124.7 124.4 123.3 126.7 Iron and steel, subtotal... 4.23 121.6 122.7 123.6 124.2 127.7 125.5 119.4 119.6 116.4 118.0 118.5 119.2 120.0 120.0 Fabricated metal products.. 5.94 130.7 131.5 132.4 133.1 130.0 131.4 130.6 131.6 131.3 131.9 132.5 131.3 130.0 131.0 Machinery and allied goods 32.44 117.3 118.9 118.9 119.9 118.6 115.2 113.8 114.8 115.5 117.5 117.7 117.2 116.2 116.6 Machinery 17.39 125.9 130.0 129.2 130.4 130.9 128.6 127.2 128.4 128.2 129.7 130.4 129.8 127.6 127.6 Nonelectrical machinery 9.17 125.1 130.0 130.0 130.3 130.2 129.4 128.1 129.8 130.7 131.9 131.7 131.2 132.0 132.0 Electrical machinery 8.22 126.8 129.8 128.5 130.5 131.6 127.7 126.2 126.8 125.3 127.4 129.0 128.3 122.6 122.6 Transportation equipment 9.29 109.2 107.3 108.8 109.8 103.0 95.7 93.9 95.0 97.8 100.6 99.4 98.7 99.6 100.5 Motor vehicles and parts 4.56 138.1 133.9 136.4 137.8 124.6 112.7 109.2 110.2 116.4 119.6 116.9 117.3 118.0 118.8 Aerospace and misc. trans, eq. 4.73 81.4 81.7 82.3 82.9 82.2 79.3 79.3 80.3 80.0 82.4 82.6 80.9 81.9 82.8 Instruments 2.07 138.4 141.5 141.0 142.6 142.7 143.0 142.8 142.8 143.8 146.1 147.5 146.7 146.5 146.0 Ordnance, private and Govt 3.69 85.4 83.7 83.8 84.3 86.1 85.2 84.2 84.9 84.3 86.1 86.4 87.2 87.9 88.7 Lumber, clay, and glass 4.44 129.5 128.8 129.7 129.3 127.8 129.7 127.4 128.1 128.9 128.0 126.4 125.5 124.3 112244..22 Lumber and products 1.65 128.9 128.9 127.4 127.3 126.3 126.1 127.1 126.1 126.8 126.8 125.6 121.6 122.1 Clay, glass, and stone products. 2.79 129.9 128.8 131.2 130.4 128.7 131.8 127.6 129.3 130.3 128.7 126.9 127.7 125.7 Furniture and miscellaneous 2.90 135.2 138.2 136.1 136.4 135.3 133.4 135.2 136.8 136.8 138.9 138.5 139.7 138.2 113388..00 Furniture and fixtures 1.38 126.3 130.4 128.8 127.9 124.9 124.2 125.4 126.8 128.8 129.7 131.1 131.6 128.1 Miscellaneous manufactures.. 1.52 143.3 145.3 142.9 144.3 144.5 141.8 144.2 145.8 144.1 147.3 145.3 147.1 147.5 Nondurable manufactures Textiles, apparel, and leather. 6.90 114.7 117.5 116.8 116.7 118.8 116.2 115.3 112.4 109.3 109.8 108.5 108.0 106.5 110099..66 Textile mill products 2.69 127.1 130.2 130.2 129.4 130.9 128.4 127.6 125.0 123.4 124.0 125.1 125.8 112244..66 Apparel products 3.33 112.9 115.4 114.9 115.3 118.5 116.4 113.6 110.0 105.8 105.0 102.1 102.7 Leather and products .88 83.6 86.4 83.1 82.9 82.9 77.6 83.7 83.0 79.5 83.9 81.6 72.9 72.1 Paper and printing 7.92 122.1 122.1 121.3 121.9 121.2 121.7 122.2 122.5 121.2 121.3 122.3 121.6 122.8 123.1 Paper and products...., 3.18 135.4 134.8 135.3 136.2 136.7 138.7 137.6 140.2 135.4 135.1 136.7 136.1 134.2 Printing and publishing. 4.74 113.2 113.6 112.1 112.3 110.8 110.4 111.9 110.7 111.7 111.9 112.7 112.1 115.1 iUA Chemicals, petroleum, and rubber. 11.92 149.3 150.9 151.1 151.6 151.6 151.5 151.2 151.3 153.5 153.0 153.7 153.6 153.9 153.8 Chemicals and products 7.86 150.1 153.0 152.7 153.0 154.5 154.9 155.3 155.5 156.2 156.2 156.9 • 155.7 156.0 156.5 Petroleum products 1.80 127.4 126.0 130.4 129.5 125.5 120.5 116.9 117.3 126.9 126.1 126.2 127.6 126.5 123.3 Rubber and plastics products... 2.26 164.0 163.6 161.9 164.5 162.3 164.3 163.5 164.2 165.5 163.7 164.5 167.0 168.0 Foods and tobacco... 9.48 •121.9 122.2 121.7 124.7 123.0 125.4 126.2 125.3 124.3 126.5 125.3 124.8 125.1 125.1 Foods 8.81 122.7 123.2 122.4 125.4 124.5 126.3 ni.i 126.5 125.9 127.8 127.1 126.6 126.8 126.7 Tobacco products. .67 111.6 109.1 113.7 115.8 104.2 113.3 112.1 110.4 104.6 109.4 102.9 101.5 Mining Metal, stone, and earth minerals. 1.26 118.1 120.4 120.9 121.3 122.0 121.4 119.9 119.7 117.5 117.9 112.4 113.8 108.4 111144..77 Metal mining .51 130.8 136.6 138.3 135.2 135.2 135.2 132.2 132.9 127.4 128.1 121.1 121.1 106.3 Stone and earth minerals .75 109.5 109.5 109.2 111.7 113.1 111.9 111.6 110.7 110.7 111.0 106.4 108.8 109.9 Coal, oil, and gas. 5.11 108.3 109.5 109.7 108.8 107.5 107.0 109.6 110.2 109.8 109.2 109.7 109.1 107.4 108.4 Coal .69 103.6 109.8 103.0 104.1 110.4 108.7 112.7 114.7 110.3 112.4 118.3 115.6 100.7 112.4 Oil and gas extraction 4.42 109.0 109.7 110.8 109.6 107.0 106.8 109.1 109.5 109.7 108.8 108.4 108.1 108.5 107.8 Utilities Electric. 3.91 160.7 116655..11 165.3 163.4 155.6 115533..00 115544..66 115555..11 115588..33 115599..00 116600..33 116622..77 Gas 11..1177 112244..22 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 • OCTOBER 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production MMaannuu-- PPrriicceess ^^ ffaaccttuurriinngg 22 IInn-- CCCCCCaaaaaa------ MMaarrkkeett dduussttrryy ppppppaaaaaacccccciiiiiittttttyyyyyy NNNNoooonnnnaaaagggg---uuuuuuttttttiiiiiilllllliiiiiizzzzzzaaaaaa------ CCCCCCoooooonnnnnn------ rrrriiiiccccuuuullll---- Products ttttttiiiiiioooooonnnnnn ssssssttttttrrrrrruuuuuucccccc------ ttttuuuurrrraaaallll TTTTTToooooottttttaaaaaallllll Period TTTTToooootttttaaaaalllll TToottaall C Fi o n n a - l mm IInn ee tt dd ee iiaa rr-- ttee MMM rrriii aaa aaa ttt lll eee sss --- fff MMM aaaccc iii aaa nnn ttt nnn ggg uuu uuu rrr--- --- iiiiii oooooo ====== nnnnnn (((((( uuuuuu 111111 mmmmmm 111111 tttttt 999999 pppppp 000000 666666 ffffff uuuuuu 000000 gggggg 777777 tttttt )))))) ...... ttttttrrrrrr cccccc tttttt aaaaaa iiiiii oooooo oooooo cccccc nnnnnn nnnnnn ttttttssssss ------ TTTT mmmm pppp eeee oooo eeee llll mmmm oooo tttt nnnn aaaa yyyy tttt ---- llll ---- ———— 1111 pppp mmmm EEEE lllloooo eeee mmmm yyyy nnnn ---- ---- tttt PPPP rrrroooo aaaa llll yyyy llllssss ---- ssssss rrrrrr aaaaaa eeeeee llllll tttttt eeeeee aaaaaa ssssss iiiiii llllll 333333 ssss CCCC uuuu oooo mmmm nnnn eeee ---- rrrr mmmm WWWW cccc ssss oooo oooo hhhh aaaa mmmm dddd oooo lllleeee iiii llll ---- eeee ttttyyyy ---- Total sumer Equipgoods ment 1955.. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956.. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957.. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958.. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959.. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 I960.. 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961.. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962.. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963.. 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964.. , 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965.. . 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966., 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967.. . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968.. . 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 1969.. . 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 1970., . 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 1971. , 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93 9 116.3 122 121.2 113.9 1972. . 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1973. 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 114.8 101.9 146.9 133.1 134.7 1973— S A e u p g t . . . . . 1 1 2 2 6 6 . . 5 8 1 1 2 2 3 4. . 3 7 1 1 2 2 1 2 . . 4 4 1 1 3 32 1 . . 3 2 1 1 0 0 7 8 . . 6 5 1 1 3 3 2 1 . . 1 0 1 1 3 3 0 1 . . 9 3 1 12 2 6 6 . . 3 1 1 1 f OJ , J 1 1 9 8 9 2 . . 0 0 1 1 1 1 5 5. , 3 0 1 1 0 0 2 2 . . 1 1 1 1 4 4 6 9 . . 7 8 1 1 6 6 2 3 1 1 3 3 5 5. . 5 1 1 1 3 4 9 2 . . 7 1 Oct... . 127.0 124.3 122.7 132.6 108.9 130.6 131.1 126.4 191.0 116.0 102.9 151.7 164 136.6 138.7 Nov.. . 127.5 125.3 123.7 133.5 110.1 131.1 131.5 127.4 82.6 194.0 116.4 103.3 155.8 164 137.6 139.2 Dec.. . 126,5 124.0 122.6 131.3 110.1 129.1 130.7 126.4 161.0 116.4 103.2 153.7 161 138,5 141.8 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 . 124.9 122.7 120.8 128.5 110.1 129.4 128.7 167.0 116.8 101.9 147.9 169 144.0 152.7 May! . 125.7 123.8 122.4 129.7 112.2 129.2 129.1 "us'.Y 80.1 188.0 117.1 102.0 154.4 172 145,6 155,0 June. 125.8 124.0 122.6 130.2 112.0 128.9 128.8 125.6 166.0 117.1 102.0 155.5 170 147,1 155,7 July. 125 6 124 1 123.0 130.1 112.9 128.0 128.0 125.2 177.0 117,0 101.7 156,6 177 148 3 161 7 Aug.. . 125.1 123.0 121.7 129.4 111.0 128.1 128,7 124.7 79.2 170.0 117.1 101.2 158,0 179 150,2 167,4 Sept.. 125.3 112222..77 112211..55 112288..44 111111,,88 112277..55 112299..88 112255..55 111177,,11 110011,,11 115599,,77 117777 116677,,22 1 Employees only: excludes personnel in the Armed Forces. Construction contracts: McGraw-Hill Informations Systems Company 2 Production workers only. F. W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering; 4 Prices are not seasonally adjusted. Latest figure is final. does not include data for Alaska and Hawaii. 5 Figure is for 3rd quarter 1973. Employment and payrolls: Based on Bureau of Labor Statistics data; NOTE.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Capacity utilization: Based on data from Federal Reserve, McGraw- Prices: Bureau of Labor Statistics data. Hill Economics Department, and Dept. of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1973 1974 Type of ownership and 11997722 11997733 type of construction Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Total construction i 90,979 100,071 10,303 8,151 8,983 7,905 6,133 5,954 6,610 7,911 8,929 10,158 8,480 9,295 8,416 By type of ownership: 24,043 26,686 2,968 2,328 2,055 2,140 1,855 2,135 2,212 2,481 2,336 3,082 2,968 3,242 3,311 Private i ] !. 66,936 73,385 7,335 5,822 6,928 5,765 4,277 3,819 4,398 5,430 6,593 7,076 5,512 6,053 5,105 By type of construction: Residential building i 44,975 46,246 4,233 3,638 3,673 3,299 2,341 2,231 2,678 3,374 3,924 3,862 3,546 3,350 3,060 Nonresidential building 27,021 31,761 3,241 2,719 2,758 2,655 2,210 2,307 2,260 2,752 2,842 3,120 2,989 3,698 3,246 Nonbuilding 18,983 22,064 2,828 1,794 2,552 1,951 1,581 1,415 1,672 1,785 2,163 3,176 1,945 2,247 2,110 Private housing units authorized... 2,219 1,820 1,777 1,656 1,379 1,361 1,285 1,282 1,325 1,410 1,296 1,120 1,106 ''1,017 912 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, NOFE.—^Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im- McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data exceed annual totals because adjustmentscent for total and private construction, in each case, and by 8 per cent for negative—are made in accumulated monthly data after original figures residential building. have been published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser- Period Total Total d R e e n s ti i a - l Total Indus- Bu C il o d m in - gs b O u th il e d r - Other Total M ta i r l y i- H w ig a h y - d v e m a a v t e n e i d o n lo n t p - Other 2 trial mercial ings 1 1962 3 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1,750 10,590 1965 73,412 51,350 27,934 23.416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 93,728 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 1972 124,077 93,893 54,288 39,605 4,676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 1973'- 135,456 102,894 57,623 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.^ 136,446 103,280 56,316 46,964 6,748 15,762 5,860 18,594 33,166 1,079 10,566 2,300 19,221 Nov.'- 135,692 102,270 54,548 47,722 7,080 16,054 5,727 18,861 33,422 1,060 10,952 2,362 19,048 Dec.'^, 133,222 100,110 52,357 47,753 7,343 15,890 5,913 18,607 33,112 1,082 11,168 2.314 18,548 I974_jan.'- 132,863 98,023 49,720 48,303 6,831 15,762 6,058 19,652 34,840 1,305 12,043 2,044 19,448 Feb.'- 136,604 99,092 48,963 50,129 7,869 16,650 6,143 19,467 37,512 1,361 12,465 2,510 21,176 Mar.'- 135,880 99,442 49,090 50,352 7,500 16,652 6,336 19,864 36,438 1,401 10,985 2,463 21,589 Apr.'- 138,277 99,323 49,438 49,885 6,920 16,296 6,264 20,405 38,954 1,505 12,209 2,665 22,595 May, 140,511 100,237 49,604 50,633 7,606 16,408 5,890 20,729 40,274 1,181 12,322 2,692 24,079 June , 138,613 100,128 49,244 50,884 8,027 16,425 6,034 20,398 38,485 1,169 11,632 3,306 22,378 July.. 136,215 98,027 48,485 49,542 7,158 15,953 5,915 20,516 38,188 1,131 Aug.f 134,373 95,733 47,084 48,649 7,215 15,287 5.855 20,292 38,640 977 1 Includes religious, educational, hospital, institutional, and other build- 4 Beginning 1963, reflects inclusion of new series under "Public" (fo 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. PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New -family homes sold (end of period) and for sale Units Median prices (in thousands Mobile of dollars) of Period home units 2-or- 2-or- 1- 2-or- ship- Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale period) 1963.. 1,603 1,012 591 151 560 265 18.0 18.7 1964.. 1,529 971 558 191 505 250 18.9 19.6 1965.. 1,473 964 509 217 575 228 20.0 21.3 1966.. 1,165 779 386 217 461 196 21.4 22.8 1967., 1,292 844 448 240 487 190 22.7 23.6 1968. 1,508 899 608 1,320 859 461 318 490 218 24.7 24.6 1969. 1,467 811 656 1,399 808 592 885 350 535 413 448 228 25.6 27, Q 1970. 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 1971. 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 1972. 2,357 1,309 1,048 1.972 1,143 828 1,586 640 947 576 718 416 27.6 28.3 1973. 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 1973_Aug. . 2,030 1,108 921 1,854 1,114 740 1,719 663 1,056 543 557 462 33.2 31.7 Sept.. 1,844 990 854 1,944 1,152 792 1,716 650 1,066 479 557 453 33.2 32.1 Oct. . 1.674 957 718 1.973 1,121 851 1,679 636 1,043 458 505 451 33.3 32.3 Nov.. 1.675 938 737 1,949 1,128 821 1,666 624 1,042 490 511 447 34.0 32.6 Dec. . 1,403 767 636 1,873 1,050 823 1,647 616 1,031 456 433 446 35.7 32.9 1974—Jan... 1,464 793 671 1,916 1,026 890 1,604 596 1,008 469 474 450 34.2 33.4 Feb. . 1,922 1,056 866 1,891 1,018 873 1,620 601 1,019 449 516 459 34.9 33.5 Mar. . 1,499 962 537 1,885 973 912 1,563 597 966 475 585 453 36.0 34.0 1,630 996 634 1,695 883 812 1,542 600 942 435 570 449 35.7 34.3 May.' 1,471 931 540 1,677 882 795 1,510 597 913 451 601 441 35.6 34.7 June.. 1,596 1,014 582 1,859 1,091 768 1,482 580 902 441 530 435 35.3 35.0 July.. 1,331 948 383 1,651 918 733 1,449 582 867 380 518 431 37.1 35.3 Aug.p 1,126 824 302 Digitized for FNROATES.—ER^A ll series except prices, seasonally adjusted. Annual rates for the Mobile Home Manufacturers* Assn. and seasonally adjusted by http://frasers.statlrotsu, cisofmepdl.eotirogn/s , mobile home shipments, and sales. Census data except Census Bureau. Data for units under construction seasonally adjusted by for mobile homes, which are private, domestic shipments as reported by Federal Reserve. Federal Reserve Bank of St. Louis

A 54 EMPLOYMENT • OCTOBER 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total non- Total Unemployinstitutional Not in labor Employed 1 ment Period population labor force force rate 2 (N.S.A.) (N.S.A.) (S.A.) Total Total In c n u o lt n u a ra g l r i- In U pl n o e y m ed - (pe S r . c A e .) n t; industries agriculture 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_Sppt.. 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 55,952 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 Sept.. 151,367 57,706 94,067 91,850 86,538 83,027 3,511 5,312 5,8 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is NOTE.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in fa g c - Mining c C o o n t n i s o t t r n r a u c c t - t T i l o i r c a n n u s & ti p li o p ti r u e t b a s - - Trade Finance Service G m ov e e n r t n - 1968. 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969. 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 1970., 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971., 70,645 18,529 602 3,411 4,442 15,142 3,796 11,869 12,856 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--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 76,941 19,921 659 3,659 4,668 16,549 4,130 13,248 14,107 May... 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. . . 77,047 19,913 669 3,534 4,648 16,665 4,133 13,376 14,109 Aug.P. 77,113 19,841 670 3,552 4,653 16,663 4,143 13,431 14,160 Sept. P. 77,146 19,864 675 3,502 4,646 16,651 4,154 13,442 14,212 NOT SEASONALLY ADJUSTED 1973—Sept.. 76,238 20,132 641 3,944 4,671 16,367 4,082 12,982 13,419 Oct.. 76,914 640 3,923 4,680 16,515 4,076 13,057 13,855 Nov., 77,322 643 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 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... 76,913 19,835 683 3,778 4,704 16,632 4,199 13.537 13,545 Aug.P. 77,063 20,040 685 3,847 4,695 16,589 4,201 13.538 13,468 Sept. P. 77,426 20,139 683 3,733 4,688 16,631 4,158 13,429 13,965 NOTE.—Bureau of Labor Statistics; data include all full- and part- persons, domestic servants, unpaid family workers, and members of time employees who worked during, or received pay for, the pay pe- Armed Forces are excluded. riod that includes the 12th of the month. Proprietors, self-employed Beginning with 1970, series has been adjusted to Mar. 1971 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • PRICES A 55 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period ite A m ll s Food Total Rent H o s w o h n m i e p e r - - F c a o o u n i a e l d l l t e r G a i l c e n a i c d s ty - o n F p i a n i e u s n g r h d r s a - - - A u p p a p k n e a d e r e p l T p t r o i a o r n t n a s - - Total M c ic a e a r d e l - s c P o a e n r r e a - l r R e a i e c n n r a g e d d a - - g O s a o e t o n h rv d d e - s r tion tion ices 1929 51.3 48.3 76.0 48.5 1933 38.8 30.6 54.1 36.9 1941 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 196 5 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 196 6 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 no.I 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 197 3 133.1 141.4 135.0 124.2 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 I973_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 I974_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. 143.1 159.1 144.9 128.4 157.2 201.5 140.0 132.6 132.2 132.0 135.4 144.8 131.8 129.5 132.8 144.0 158.6 146.0 128.8 158.2 206.5 141.9 134.0 133.6 134.4 136.3 145.6 133.1 130.4 133.6 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 Aug. 150.2 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 143.4 142.6 153.7 139.3 135.2 139.4 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro- Period m c A g b m l d l i - - p F u r a c o r t d m s - c f f e o e a s o e n s d d d e s s d Total t T e il e e tc x s . - , H e id tc e . s , F e u tc e . l , C ic e h a t e c l m s . , - R b e u e tc b r . , - L b e u e t m c r . , - P e a t p c e . r, M e a t l e s c t , . - e c m M a q e h e n u r i a y n d n i - p - t - F t e u u t r r c e n . , i - N t e m m a r o a l i e l n n i l - c s - - T e p m t r q o i a e o u r n n n t i a p s t! - - - n c M e e o i ll s u a - s - 1960 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 196 5 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 196 6 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 196 9 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 197 0 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 197 1 113.9 112.9 114.3 114.0 108. ff 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 197 2 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 197 3 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1973—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 Sept. 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 1 Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME • OCTOBER 1974 GROSS NATIONAL PRODUCT an billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 II III IV I II Gross national product 103.1 55.6 124.5 284.8 930.3 977.1 1,054.9 1,158.0 um.9 1.277.S 1,308.9 1,344.0 1,358.8 1,383.8 Final purchases 101.4 57.2 120.1 278.0 922.5 972.6 1,048.6 1,149.6 1,279.6 1,267.S 1,297-0 1,816.1 I.S4I.9 1,S70.S 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 62.4 242.7 262.6 284.8 301.9 336.9 334.2 340.1 347.4 352.4 363.8 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 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 98.5 100.6 104.6 116.8 136.8 135.6 139.0 141.9 145.2 149.4 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 1.7 -1.6 4.5 6.8 7.8 4.5 6.3 8.5 15.4 10.7 11.8 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 -1.5 7.0 2.4 5.9 13.8 55.5 62.9 65.4 72.4 100.4 95.4 103.7 113.6 131.2 138.5 Imports 5.9 2.0 4.6 12.0 53.6 59.3 65.6 78.4 96.4 94.9 96.9 104.3 119.9 140.0 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 75.8 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. 203.6 141.5 263.7 355.3 725.6 722.5 746.3 792.5 839.2 837.4 840.8 845.7 830.5 827.1 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 40.3 104.2 241.1 766.0 800.5 857.7 946.5 1,065.« 1,051.2 1,077.3 1,100.3 1,118.8 1,130.2 Compensation of employees. 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 Wages and salaries.... 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 Military .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 Sutpppplleemmeennttss ttoo wages and salaries .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 insurance . .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 Business and professional. 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 addjjuusstt]m ent. 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.0 105.2 106.4 107.7 105.6 Profits before tax 10.0 1.0 17.7 42.6 84.9 74.0 83.6 99.2 122.7 124.9 122.7 122.7 138.7 143.5 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 57.9 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 85.6 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 Undistributed profits. 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 53.0 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 Net interest 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

OCTOBER 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 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 II III IV I IIP Gross national product 103.1 55.6 124.5 284.8 930.3 977.1 1,054.9 1,158.0 1,?894.9 1,277.9 1,308.9 1,344.0 1,358.8 1,383.8 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 liability 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 Plus: Subsidies less current surplus of government enterprises. 1 . 1 .2 1.0 1.7 1.1 2.3 .6 .7 .3 —. 1 —2.7 —3.7 Equals: National income 86.8 40.3 104.2 241.1 766.0 800.5 857.7 946.5 1,065.6 1,051. 1,077.3 1,106.3 1,118.8 1,130.2 Less: Corporate profits and inventory valuation adjustment. 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.0 105.2 106.4 107.7 105.6 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 disbursements .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 22..55 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 1,055.0 1,039.3 1,068.0 1,099.3 1,113.5 1,134.6 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 foreigners .3 .2 .2 .5 .9 1.0 1.1 1.1 1.3 1.0 .9 2.2 1.2 1.0 Equals: Personal savipg 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 bUlions of dollars) 1973 1974 Item 11997722 11997733 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June JulyP Augp Total personal income 944.9 1,055.0 1,067.6 1,080.4 1,090.8 1,100.0 1,107.1 1,107.0 1,113.4 1,117.1 1,125.2 1,135.2 1,143.5 1,158.5 1,165.2 Wage and salary disbursements 626.8 691.7 697.2 704.5 711.0 717.9 722.2 722.5 728.3 .732.1 .737.1 745.3 753.2 759.7 762.1 Commodity-producing industries... 225.4 251.9 253.7 257.4 260.0 263.1 264.5 262.1 264.6 265.3 267.4 270.0 272.6 273.3 276.2 Manufacturing only 175.8 196.6 197.8 200.4 202.9 205.2 205.8 204.1 204.9 205.5 207.8 210.1 212.5 214.0 215.5 Distributive industries 151.0 165.1 166.2 168.2 169.1 171.1 170.9 172.0 ni.^ 173.9 175.3 177.8 179.1 180.8 181.0 Service industries 115.3 128.2 129.7 130.7 131.5 132.3 134.7 135.3 137.0 138.2 139.1 141.1 142.6 143.5 145.1 Government 135.0 146.6 147.5 148.2 150.4 151.4 152.1 153.0 153.8 154.6 155.3 156.3 158.9 162.1 159.8 Other labor income. 41.7 46.0 46.3 46.7 47.1 47.6 48.0 48.5 48.9 49.4 49.9 50.5 51.1 51.7 52.3 Proprietors' income 75.9 96.1 99.1 102.1 103.2 103.4 103.3 100.8 98.5 96.0 92.8 89.9 86.9 89.0 91.0 Business and professional. 54.9 57.6 57.6 57.8 58.3 58.5 58.4 58.7 59.4 59.9 60.2 60.8 61.2 61.9 62.4 Farm 21.0 38.5 41.5 44.3 44.9 44.9 44.9 42.1 39.1 36.1 32.6 29.1 25.7 27.1 28.6 Rental income 25.9 26.1 26.2 26.4 26.4 26.4 26.4 26.4 26.4 26.4 25.5 26.7 26.7 26.6 26.6 Dividends 27.3 29.6 30.0 30.0 30.2 30.4 31.6 31.4 31.6 31.9 32.1 32.5 33.0 33.1 33.2 Personal interest income. 78.6 90.6 92.5 93.7 94.8 96.0 97.0 97.5 98.3 99.0 100.4 102.0 103.5 104.4 105.1 Transfer payments 103.2 117.8 119.4 120.4 121.7 122.1 122.6 126.7 128.4 129.5 134.6 135.8 137.0 142.5 143.4 Less: Personal contributions for social insurance 34.5 42.8 43.3 43.5 43.7 43.8 43.8 46.7 46.8 47.0 47.2 47.6 47.9 48.5 48.5 Nonagricultural income. 916.5 1,008.0 1,017.6 1,027.6 1,037.0 1,046.1 1,052.9 1,055.5 1,064.9 1,071.6 1,083.1 1,096.6 1,106.8 1,121.7 1,126.9 Agricultural income.... 28.4 47.1 50.0 52.9 53.8 53.9 54.2 51.5 48.5 45.5 42.1 38.6 36.8 36.7 38.4 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 oi (Seasonally adjusted annual rates; in billions of dollars) 00 Private domestic nonfinancial sectors Financial sectors RReesstt ooff UU..SS.. AAllll State tthhee GGoovvtt.. Fed. spons. Mone- Pvt. sseeccttoorrss DDiissccrreepp-- NNNaaatttlll,,, Sector House- Busi- and local Total wwoorrlldd Total credit Coml. nonbank aannccyy sssaaavvviiinnnggg holds ness govts. agencies aS banks finance aaannnddd iiinnnvvveeesssttt--- TTTrrraaaiii[ isaction mmmeeennnttt cccaaattteeeg ory 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 1 Gross pving 229.6 112.6 .2 342.5 -.1 -8.2 10.5 .2 .1 4.4 5.7 344.7 344.7 1 2 115.7 95.2 211.0 3.1 1.7 1.4 214.1 214.1 2 3 Net saving (1-2) 113.9 17.4 131.5 -A -'.82! 2 7.4 .i 2.7 4.3 130.6 130.7 3 4 Gross investment (5+10) 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 5 174.1 160.5 334.7 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 57.2 57.2 7 8 Plant and equipment 6.3 125.7 132.0 4.8 "3.6 1.8 136.8 136.8 8 9 Inventory change 15.4 15.4 15.4 15.4 9 10 Net financial investment (11-12) 61.5 -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 11 Financial uses 113300..88 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 12 Financial sources 69.3 105.5 li.i 188.1 15.3 12^6 209.1 ii.s 7.7 97^3 82! 3 424^6 17.4 12 13 Gold and official foreign exchange. . . . • -.2 * -.2 -.2 ... -.2 -.2 13 14 Treasury currency .4 .4 ... .4 .4 14 15 Demand deposits and currency 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 1 7 6 U Pr .S iv . a G te o d v o e m rn e m s e ti n c t 13.1 -.3 -.3 12.5 -i'.s 2.4 - 1 1 5 . . 5 0 .1 -3 . . 9 5 .3 - 1 1 1 . . 0 0 2.0 - 1 1 4 . . 8 9 - 1 1 5 . . 5 0 . . 3 1 1 1 7 6 18 Foreign • 2^5 ! 2.5 .1 2.6 2.5 2.5 18 19 Time and savings accounts 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 24 Interbank items "7!9 7.9 -1.% "3 .5 "9.'5 "4.'4 7.9 7.9 24 25 Corporate shares -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 26 Credit market instruments 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 2 2 8 7 State and local obligations 2 4 0 . . 3 4 -1 -. . 1 8 "i.'s . . 2 2 '11.9 1 4 8 . . 4 8 13.7 .3 . * 9.8 1 9 0 . . 3 3 19.6 1.3 19.6 9.3 ... -1 5 . . 3 7 .... ^ 3. . 6 9 2 1 9 3 . . 4 7 2 1 9 3 . . 4 7 2 2 8 7 29 Corporate and foreign bonds 1.1 9.2 1.1 9.2 i.'o 11.3 "2.3 ..55 10.9 "2.3 12.5 12.5 29 30 Home mortgages -.9 '44^2 -.9 * -.9 43.3 -1.2 43.9 -1.5 6^4 1111..00 26.5 -1.5 41.7 41.7 3300 31 Other mortgages 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 3311 32 Consumer credit 22.0 "3.3 3.3 22.9 19.7 10.6 9.0 22.9 22.9 3322 3 3 3 4 B O a th n e k r lo lo a a n n s s n.e.c 2 1 . . 5 8 "i'.s '3 5 4! . 6 1 ii.'3 3 7 5 . . 9 8 "2 3 ^ .9 8 "3.6 5 1 2 3 . . 1 7 'i 1 3 7 ! . 5 0 ••8;5 • • ^ • • • 5 - 2 . . 8 1 " 5 5 . ^ 5 1 "5.9 11.5 2 5 8 2 . . 8 1 2 5 8 2 . . 8 1 3 33 4 33 35 Security credit -.2 --44..66 -.2 -4.6 * -.2 -8.0 -3.4 -3.4 -4.6 -3.4 -8.2 -8.2 35 36 To brokers and dealers -.2 -.2 * -3.2 -3.4 -3.2 -3.4 -3.4 -3.4 36 37 To others -.2 -4.8 -.2 -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 '24! i 20.1 "i.'i 24.1 21.8 'i.'9 .3 "".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 "A "9.'6 2.5 11.1 2.9 "7.6 " h'.z "i.'o '12.S '27^8 "1.7 "2.2 .'8 ••7.'2 'I7!5 "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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 1974f Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 j HI H2 HI Funds raised, by type and sector J Total funds raised by nonfinancial sectors 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 Public debt securities 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 Corporate equities .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 II.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 Mortgages 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 Home mortgages 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 Other residential 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 Commercial 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 Farm 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 Bank loans n.e.c 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 Consumer credit 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 Households 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 Farm 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 Corporate 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 Corporate business * 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 Corporate 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 outlays ^ 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 Capital consumption 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 Net debt funds raised 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 Corporate equity issues * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 10 11 Excess net investment ^ 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 Net physical investment 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 Corporate equity issues * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 16 17 Excess net investment 3 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 Capital consumption 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 Net physical investment 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 Net funds raised 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 Excess net investment 3 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 ^ 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 institutransaction types are available on a quarterly basis and annually for flows tions. Such issues are on p. A-59.2, line II. 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 comniercial 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.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.2 FLOW OF FUNDS • OCTOBER 1974 3. DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 192.5 167.8 182.3 By public agencies and foreign 2 Total net advances 8.9 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 41.0 25.4 38.9 2 3 U.S. Government securities 3.7 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 20.6 1.3 9.0 3 4 Residential mortgages .4 2.8 2.1 2.8 4.6 5.7 5.7 5.2* 7.6 5.0 10.2 11.4 4 5 FHLB advances to S&L's .7 .9 -2.5 .9 4.0 1.3 -2.7 7 8.0 6.3 6.8 5 6 Other loans and securities 4.1 4 4.9 5 6.3 5.2 4.9 4.6 7 7.4 7.6 11.7 6 By agency— 7 U.S. Government 2.8 4.9 4.6 4.9 2.9 2.8 3.2 2.6 3.0 .9 5.0 2.6 7 8 Sponsored credit agencies 2.2 5 -.1 3.2 8.9 10.0 3.2 7.0 20.3 18.3 22.2 20.0 8 9 Monetary authorities 3 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 10.1 8.3 6.2 9 10 Foreign -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 -10.1 10.2 10 11 Agency borrowing not included in line 1 2.1 4.8 -.6 3.5 8.2 3 6.2 19.6 17.4 21.8 14.1 11 Private domestic funds advanced 12 Total net advances 62.8 59.8 68.1 87.2 81.1 72.6 98 146.7 166.5 168.8 164.2 157.5 12 13 U.S. Government securities * 5.4 5.7 13 4.8 5.2 -4.4 15.2 18.4 14.7 22.2 13.4 13 14 State and local obligations 7.3 5.6 7.8 9 9.9 11 17.6 14.4 13.7 11.6 15.8 16.4 14 15 Corporate and foreign bonds 6.0 10.3 16.0 13.8 12.5 20.0 19 13.2 10.1 9.1 11.0 14.9 15 16 Residential mortgages 18.6 12.0 13.0 15 15.7 12.8 29.1 44.6 44.1 49.4 38.8 34.2 16 17 Other mortgages and loans 31 27.4 23.1 35.9 42.2 24.6 33 59.5 87.4 92.0 82.8 85.5 17 18 Less: FHLB advances .9 -2.5 .9 4.0 1 -2.7 7.2 8.0 6.3 6.8 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 179.0 138.7 142.1 19 20 Commercial banking 28.7 17.5 35.9 38 18.2 35 50.6 70.5 86.6 93.7 79.5 78.0 20 21 Savings institutions 14.3 7.9 15.0 15.6 14.5 16.9 41 49.3 35.1 49.4 20.8 35.0 21 22 Insurance and pension funds 13.6 15.5 12.9 14.0 12.7 17.3 13 17.7 22.1 21.3 22.9 22.6 22 23 Other finance 6.2 4.5 -.3 7.0 9.9 5.7 5 15.8 15.0 14.6 15.5 6.4 23 24 Sources of funds 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 179.0 138.7 142.1 24 25 Private domestic deposits 38.4 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 102.3 67.4 87.4 25 26 Credit market borrowing 7.9 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 36.5 26.7 22.0 26 27 Other sources 16.6 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40.2 44.6 32.7 27 28 Foreign funds .8 3.7 2.3 2.6 9.3• -8.5 -3.2 5.2 6.5 5.2 7 11.7 28 29 Treasury balances -1.0 -.5 .2 -.2 2.9 2.2 .7 -1.0 -.3 -1 -2.7 29 30 Insurance and pension reserves 11.4 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 15.9 17.6 17.8 30 31 Other, net 5.4 3.0 -.6 7.2 13.8 4.4 2.9 16.5 20.2 19 21.0 5.9 31 Private domestic nonfinancial investors 32 Direct lending in credit markets 7.9 17.6 4.2 20.4 44.5 -2.6 -3.2 13.7 39 26.4 52.2 37.4 32 33 U.S. Government securities 2.9 8.4 -1.4 8 17.0 -9.0 -14.0 1.6 18.8 15.7 21.8 10.1 33 34 State and local obligations 2.6 2.6 -2.5 -.2 8.7 -1.2 .6 2 4.4 5.5 3.3 6.3 34 35 Corporate and foreign bonds 1.0 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -.2 2.4 2.6 35 36 Commercial paper 1 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 2.8 19.8 15.1 36 37 Other -.1 2.3 1.7 2 1 2.0 1.4 1.5 .8 3.8 2.6 4.9 3.4 37 38 Deposits and currency 40.5 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 108.0 69.6 96.5 38 39 Time and savings accounts 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 94.4 58 85.6 39 40 Large negotiable CD's 3 -.2 4.3 3 -13.7 15.0 7.7 8.7 18.5 27.2 9.9 32.5 40 41 Other at commercial banks 16.0 13.3 18.3 17 3.4 24.2 32.9 30.6 29.5 29.3 29.8 27.0 41 42 At savings institutions 13 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 37.9 18.4 26.1 42 43 Money 7.8 4.1 12.8 14.5 7.7 10.5 12.7 16 12.6 13.6 11.6 10.9 43 44 Demand deposits 5.6 2 10.6 12.1 4.8 7 9.3 12.3 8.6 7.9 9.3 1.8 44 45 Currency 2 2.0 2 2.4 2.8 3 3.4 4.4 3.9 5.7 2.2 9.1 45 46 Total of credit market instr., deposits, and currency 48.4 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 134.3 121.9 133.9 46 47 Public support rate (in per cent) 12.8 17.9 14.1 12.7 17.8 30.4 30 18.4 21.3 15 21.3 47 48 Private financial intermediation (in per cent) 100.1 75.9 93.2 86.4 68.3 103 112.8 104 95.4 106.0 84.5 90.2 48 49 Total foreign funds 2 4.3 2.9 9 23 13.6 7.2 16.9 -2.4 21.9 49 Corporate equities not included above 1 Total net issues 3.5 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 9.7 6.4 9.4 I 2 Mutual fund shares 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 -2.0 -1.2 -.2 2 3 Other equities .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 11.6 7.6 9.5 3 4 Acquisitions by financial institutions. 6.1 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 13.1 13.8 12.2 4 5 Other net purchases -2.6 -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 -3.4 -7.4 -2.8 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-59.1. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.3 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 19743' Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Households, personal trusts, and nonprofit organizations 1 Personal income 538.9 587.2 629.3 688.9 750.9 808.3 864.0 944.9 1055.0 1026.4 1083.7 1123.1 2 —Personal taxes & nontaxes 65.7 75.4 83.0 97.9 116.5 116.6 117.6 142.4 151.3 145.6 157.0 164.9 3 = Disposable personal income... 473.2 511.9 546.3 591.0 634.4 691.7 746.4 802.5 903.7 880.8 926.6 958.3 4 —Personal outlays 444.8 479.3 506.0 551.2 596.2 635.5 685.9 749.9 829.4 813.4 845.4 879.4 5 = Personal saving, NIA basis.... 28.4 32.5 40.4 39.8 38.2 56.2 60.5 52.6 74.3 67.4 81.3 78.9 6 4-Credits from Govt, insur. i 4.7 5.6 5.5 6.1 7.1 8.8 9.2 11.1 11.5 12.9 10.2 9.7 7 -f Capital gains dividends 2 .9 1.3 1.7 2.5 2.5 .9 .8 1.4 .9 1.3 .6 1.0 8 -j-Net durables in consumption. 14.8 15.2 12.4 16.7 16.2 10.6 16.5 24.4 27.1 30.4 23.8 22.6 9 = Net saving 48.9 54.6 60.0 65.0 64.1 76.4 86.9 89.4 113.9 112.0 115.8 112.2 9 10 + Capital consumption 59.9 64.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 114.4 117.1 117.2 10 11 = Gross saving 108.8 118.9 129.9 142.2 148.9 167.9 185.5 195.5 229.6 226.4 232.9 229.4 11 12 Gross investment 115.3 129.3 134.9 145.5 145.4 167.7 186.1 203.8 235.6 233.5 237.8 235.7 12 13 Capital expend, (net of sales).. 89.6 94.2 94.6 109.7 117.8 116.2 136.4 158.8 174.1 176.2 172.1 165.2 13 14 Residential construction 19.1 18.9 17.0 21.1 22.0 19.6 26.9 34.3 37.5 37.6 37.5 31.7 14 15 Consumer durable goods... 66.3 70.8 73.1 84.0 90.8 91.3 103.9 118.4 130.3 132.2 128.4 127.0 15 16 Nonprofit plant and equip... 4.1 4.5 4.5 4.5 5.1 5.3 5.6 6.0 6.3 6.4 6.2 6.5 16 17 Net financial investment 25.7 35.1 40.3 35.9 27.6 51.5 49.7 45.0 61.5 57.3 65.7 70.5 17 18 Net acquis, of financial assets 55.3 58.4 64.0 69.6 56.8 74.1 92.8 114.0 130.8 127.0 134.5 124.6 18 19 Deposits and credit market instruments 3. 40.2 41.6 48.8 54.3 42.5 54.5 72.3 93.6 110.4 107.3 113.6 106.3 19 20 Demand deposits and currency 7.7 3.9 11.2 12.3 1.5 11.2 11.0 11.8 13.1 10.4 15.7 10.1 20 21 Time and savings accounts 28.0 20.5 34.8 30.3 6.0 44.4 70.3 75.4 67.7 79.0 56.4 72.3 21 22 At commercial banks 14.9 13.2 18 17.4 -2.0 27.5 29.8 29.5 39.5 41.1 38.0 46.3 22 23 At savings institutions 13.2 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 37.9 18.4 26.1 23 24 Credit market instruments 4.5 17.3 2.7 11.7 35.0 -I.l -8.9 6.4 29.7 17.9 41.5 23.9 24 25 U.S. Govt, securities 2.5 7.7 1.5 5.6 12.8 -9.7 -14.4 .6 20.4 20.0 20.8 13.0 25 26 State and local obligations 1.7 3.6 -2.2 -.8 9.6 -.8 -.2 1.0 4.3 3.2 5.4 4.9 26 27 Corporate and foreign bonds 1.0 2.0 4.6 4.7 6.6 10.7 9.3 5.2 -.2 2.4 2.6 27 28 Conmiercial paper 2.7 -2.1 .7 4.8 -1.5 -3.9 1.5 3^5 -4.5 11.4 2.1 28 29 Mortgages 1.3 .9 1.5 1.1 .1 .2 -1.8 .5 -.5 1.5 1.3 29 30 Mutual fund shares 3.2 3.7 3.0 5 4.8 2.6 1.1 -.7 -1.6 -2.0 -1.2 -.2 30 31 Other corporate shares -5.4 -4.6 -7.3 -12.3 -8.6 -4.4 -6.5 -4.7 -6.6 -4.3 -8.9 -3.6 31 32 Life insurance reserves 4.8 4.7 5.1 4.6 5.0 5.2 6.2 6.6 7.3 7.2 7.3 7.3 33 Pension fund reserves 12.2 14.7 14.6 15.5 16.3 19.1 21.6 23.8 24.4 24.8 23.9 20.6 34 Net investment in noncorp. business.. -1, 9 -3.2 -3 -2.2 -3.5 -4.7 -4.7 -7.4 -4.4 -6.5 -2, -9.2 34 35 Security credit 9 .2 2.2 2.1 -1.8 -.9 .5 .1 -.2 -1.0 1.4 35 36 Miscellaneous 1.3 1.2 1.5 1.8 2.1 2.6 2.3 2.7 1.5 1.4 2.0 36 37 Net increase in liabilities 29.5 23.2 23.7 33.7 29.2 22.5 43.1 68.9 69.3 69.7 68.8 54.1 37 38 Credit market instruments 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 73.3 72.3 53.1 38 39 Home mortgages 15.2 12.7 10.4 14.6 16.1 12.5 24.2 38.4 44.2 44.3 44 38.6 39 40 Other mortgages 1.2 1.3 1.2 1.3 1.4 1.2 1.4 1.4 1.4 1.4 1.4 40 41 Instalment cons, credit 8.2 5.4 3.2 8'.3 9.4 5.0 9.2 16.0 20.1 22.0 18.2 11.4 41 42 Other consumer credit 1.4 1.0 1.4 1.7 1.0 1.1 2.0 3.1 2.8 3.1 2.5 1.3 42 43 Bank loans n.e.c 1.4 .4 1 2.5 I.O .9 1.8 2.8 1.8 .9 2.7 -1.5 43 44 Other loans 4 .9 2.0 1 1.7 3.0 2.6 1.4 1.3 2.5 1.6 3.4 2.0 44 45 Security credit .7 -.1 3.7 2.9 -3.4 -1.8 2.6 4.7 -4.6 -4.6 -4.5 .1 45 46 Trade debt .2 .3 .4 .5 .5 .5 .3 .6 .6 .6 .6 .6 46 47 Miscellaneous .4 .3 .4 .4 .4 .3 .5 .4 .4 .4 .4 47 48 Discrepancy (11-12) -6.5 -10.4 -5.0 -3.3 3.5 .2 -.5 -8.3 -6.0 -7. -4.9 -6.3 48 Memoranda: Net physical investment: (A) Residential construction 49 Expenditures 18.9 17.0 21.1 22.0 19.6 26.9 34.3 37.5 37.6 37.5 31.7 49 50 —Capital consumption 7.4 7 8.3 8.7 9.0 9.3 10.0 10.4 10.4 10.3 10.5 50 51 — Home mortgages 15.2 12.7 10.4 14.6 16.1 12.5 24.2 38.4 44.2 44.3 44.1 38.6 51 52 = Excess net investment -3.3 -1.2 -2.8 -1.9 -6.6 -14.1 -17.0 -17 -16.9 -17.4 52 {B) Consumer durables 53 Expenditures 66 70.8 73.1 84.0 90.8 91.3 103.9 118.4 130.3 132.2 128.4 127.0 53 54 —Capital consumption 51.5 55.6 60.7 67.4 74.6 80.7 87.5 94.1 103.3 101.9 104.6 104.4 54 55 = Net investment 14.8 15.2 12.4 16.7 16.2 10.6 16.5 24.4 27.1 30.4 23.8 22.6 55 56 —Consumer credit 9.6 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 25.1 20.8 12.7 56 57 = Excess net investment 5.2 8.8 7.9 6 5.9 4.5 5.2 5.2 4.1 5.3 3.0 10.0 57 , , Nonprofit plant and equipment 58 Expenditures 4, 4.5 4.5 4 5.1 5.3 5.6 6.0 6.3 6.4 6.2 6.5 58 59 -Capital consumption 1.2 1.3 1.4 1.5 1.6 1.7 1.9 2.0 2.1 2.1 2.2 2.2 59 60 —Nonprofit mortgages 1.2 1.3 1.2 1.1 1.3 1.4 1.2 1.4 1.4 1.4 1.4 1.4 60 61 = Excess net investment 1.8 2.0 1.9 1.9 2.2 2.2 2.5 2.6 2.7 2.9 2.6 2.8 61 NOTE.—^Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.4 FLOW OF FUNDS • OCTOBER 1974 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT-Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974P CCaatteeggoorryy 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Nonfinancial business—^Total 1 Income before taxes i 129.5 139.1 136.2 142.4 139.5 128.2 137.5 155.2 183.9 179.0 188.8 181.0 1 2 Gross saving 71.8 77.1 78.4 79.8 80.4 80.3 90.6 104.1 112.6 110.8 114.5 114.4 2 3 Gross investment 63.0 69.0 72.6 70.2 74.4 73.6 80.4 89.3 98.8 95.8 101.9 100.9 3 4 Capital expenditures 83.6 96.4 93.4 97.9 108.9 108.0 117.1 134.3 160.5 152.7 168.4 168.8 4 5 Fixed investment 74.0 81.6 85.2 90.9 101.1 103.5 110.8 125.7 145.2 142.3 148.0 152.8 5 6 Business plant and equipment 65.8 75.5 77.2 82.0 90.5 92.0 95.0 106.4 125.7 121.7 129.7 136.0 6 7 Nonfarm home residential construction 2 .7 -.7 2.0 1.1 .1 .9 3.0 2.1 -.6 1.0 -2.1 -.9 7 8 Multifamily residential 7.4 6.8 6.1 7.8 10.4 10.6 12.8 17.3 20.0 19.7 20.4 17.7 8 9 Change in inventories 3 9.6 14.8 8.2 7.1 7.8 4.5 6.3 8.5 15.4 10.4 20.4 16.0 9 10 Net financial investment -20.6 -27.5 -20.8 -27.8 -34.4 -34.5 -36.7 -45.0 -61.7 -56.8 -66.5 -67.9 10 11 Net acquisition of financial assets 21.2 13.7 18.0 30.6 30.2 14.8 25.3 33.8 43.9 51.4 36.4 57.7 11 12 Net increase in liabilities 41.8 41.1 38.8 58.3 64.7 49.2 62.0 78.7 105.5 108.2 102.8 125.6 12 13 Corporate share issues * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 13 14 Credit market instruments 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 83.2 72.1 86.2 14 15 Bonds 5.4 10.2 14.7 12.9 12.0 19.8 18.9 12.7 11.0 10.5 11.4 15.9 15 16 Home mortgages .2 -1.0 1.1 .4 -.4 .3 1.9 1.2 -.9 .4 -2.1 -1.3 16 17 Other mortgages 9.1 9.3 9.4 10.9 10.8 11.6 19.5 26.2 28.4 29.3 27.6 24.5 17 18 Bank loans n.e.c 12.2 10.6 7.9 11.1 14.5 5.8 5.9 16.1 34.0 41.9 26.1 35.1 18 19 Other loans 2.6 3.4 2.7 4.8 9.2 4.9 1.9 3.3 5.1 1.0 9.1 12.0 19 20 Trade debt 12.1 10.2 8.9 17.4 21.2 8.6 5.3 15.4 20.1 19.3 20.8 31.9 20 21 Other liabilities .3 -2.9 -8.2 1.0 -5.9 -7.3 -2.9 -7.1 .4 -2.1 2.9 1.4 21 22 Discrepancy (2-3) 8.9 8.2 5.8 9.6 6.0 6.7 10.2 14.8 13.8 15.0 12.6 13.5 22 Farm business 4 1 New income i 14.8 16.1 14.8 14.7 16.7 16.9 17.2 21.0 38.5 33.9 43.2 34.1 1 2 Net saving * « -.1 * * -.1 « .1 .3 .2 .4 .5 2 3 Capital consumption 5.0 5.3 5.7 6.2 6.6 6.4 7.0 7.5 8.4 8.2 8.6 9.1 3 4 Corporate .2 .2 .3 .3 .3 .4 .5 .6 .6 .6 .6 .7 4 5 Noncorporate 4.8 5.1 5.5 6.0 6.2 6.0 6.5 6.9 7.8 7.6 8.0 8.5 5 6 Current surplus = gross savings 5.0 5.3 5.7 6.2 6.5 6.3 6.9 7.6 8.7 8.5 9.0 9.7 6 7 Gross investment 5.0 5.3 5.7 6.2 6.5 6.3 6.9 7.6 8.7 8.5 9.0 9.7 7 8 Capital expenditures 6.3 5.8 7.3 6.3 6.6 7.0 8.4 8.4 13.9 12.5 15.4 15.5 8 9 Plant and equipment 4.9 5.4 6.0 5.7 5.9 6.3 6.4 7.1 9.5 8.8 10.1 11.3 9 10 Residential construction .5 .5 .6 .5 .6 .5 .6 .6 .5 .4 .6 .7 10 11 Change in inventories 1.0 -.2 .7 .1 •1 .2 1.4 .7 4.0 3.3 4.7 3.5 11 12 Net financial investment -1.4 -.5 -1.6 -.1 -.1 -.7 -1.4 -.8 -5.2 -4.0 -6.4 -5.9 12 13 Net acquisition in financial assets .3 .2 .4 .6 .5 .6 .7 .9 .7 .7 .7 .9 13 14 Demand deposits and currency .1 .1 .2 .1 .1 . 1 .3 * * 1 14 15 Miscellaneous assets .2 .3 .4 .4 .5 .6 .7 .7 .7 .8 15 16 Insurance receivables .1 .2 .2 .3 .4 .4 .5 .6 .6 .6 .6 .6 16 17 Equity in sponsored agencies 6 * * « •1 .1 .1 •1 .1 .2 .2 .2 .2 17 18 Net increase in liabilities 1.6 .7 2.0 .7 .6 1.4 2.1 1.7 5.9 4.8 7.0 6.7 18 19 Credit market instruments 3.3 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.5 9.7 9.0 19 20 Mortgages 2.2 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.2 4.6 4.2 20 21 Bank loans n.e.c .7 .9 .7 .4 .6 .8 1.3 1.8 3.0 2.4 3.6 3.3 21 22 Other loans .3 .4 .6 .2 .6 .6 .7 .5 1.2 .9 1.5 1.6 22 23 U.S. Government .1 * .2 -.1 * -.1 * « .1 >•> .2 -.1 23 24 FICB .3 .4 . 5 .2 .6 .7 .7 .4 1.1 .9 1.3 1.7 24 25 Trade debt .7 .9 '.8 .3 .7 .9 1.1 1.5 1.5 1.5 1.5 1.7 25 26 Proprietor net investment » -2.3 -3.3 -2.5 -2.4 -3.2 -2.8 -3.1 -4.6 -4.2 -4.2 -4.1 -4.0 26 Nonfarm noncorporate business 1 Net income i 50.7 53.8 56.4 58.9 60.0 60.3 62.2 65.3 67.7 67.2 68.3 69.8 1 2 Capital consumption 10.2 10.7 11.2 11.9 13.1 14.6 15.7 17.7 19.3 18.7 20.0 21.0 2 3 Current surplus = gross saving 5 10.2 10.7 11.2 11.9 13.2 14.6 15.7 17.7 19.3 18.7 20.0 21.0 3 4 Gross investment 10.2 10.7 11.2 11.9 13.2 14.6 15.7 17.7 19.3 18.7 20.0 21.0 4 5 Capital expenditures 15.0 14.1 14.7 16.6 18.6 16.9 21.6 23.4 25.1 24.9 25.2 21.1 5 6 Fixed capital 14.2 13.5 14.5 16.1 17.6 18.3 21.7 25.3 26.6 27.2 25.9 24.2 6 7 Plant and equipment 8.6 9.1 9.3 9.8 10.6 10.6 11.5 12.2 12.9 13.0 12.9 12.9 7 8 Home construction 2 .1 -.6 .7 .3 -.3 .2 1.2 .8 -.5 .3 -1.3 -.8 8 9 Multifamily residential 5.5 5.1 4.5 5.9 7.3 7.5 9.1 12.3 14.2 14.0 14.4 12.2 9 10 Change in inventories .7 .6 .2 .5 1.0 -1.4 -.1 -1.9 -1.5 -2.3 -.6 -3.1 10 11 Net financial investment -4.7 -3.4 -3.5 -4.7 -5.4 -2.4 -5.9 -5.6 -5.8 -6.2 -5.3 -.1 11 12 Net acquisition of financial assets .7 .9 .8 1.0 1.3 1.3 1.5 2.1 2.3 2.0 2.6 .9 12 13 Demand deposits and currency 13 14 Consumer credit '"".'A " "i.'i "i.o "' -i 14 15 Miscellaneous assets .3 .4 .4 .5 .7 .7 .8 1.0 1.0 1 1.0 1.0 1.0 15 16 Net increase in liabilities 5.4 4.3 4.3 5.6 6.7 3.7 7.4 ! 7.7 8.0 ' 8.2 7.8 1.0 16 17 Credit market instruments 5.1 5 4 5.0 5.6 . 7.4 5.3 8.7 ' 10.4 9.3 11.2 7.4 7.0 17 18 Mortgages 3.2 2.4 3.7 3.4 3.8 4.9 8.0 1 9.2 7.1 8.7 5.4 6.7 18 19 Home mortgages .1 -.5 : .6 .2 : -.2 .2 1.0 I .6 -.4 .2 -1.1 -.6 19 20 Multifamily 2.8 2.4 2.8 2.7 ' 3.6 4.3 6.2 ; 7.3 5.9 7.0 4.9 6.1 20 21 Commercial .3 .4 .3 .5i .4 .4 .9 1.3 1.6 1.5 1.6 1.2 21 22 Bank loans n.e.c l.C 1.3 .6 1.1 2.1 -.6 .2 : .7 .4 .3 .5 -1.1 22 23 Other loans 7 1.6 1.7 .6 l.C \ 1.5 l.C .5; .4 1.8 2.1 1.5 1.4 23 24 Trade debt, net -.1 -1.2 : .7 >' 1 -.5 .2 1 .31 .2 -1.0 1 -.7 -1.3 -.9 24 25 Proprietor net investment « .1 -1.3 .2: -.2 -1.8 1 -1.6; -2.8 -.3 -2.3 1.8 -5.2 25 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Nonfinancial corporate business 1 Profits before tax 65.7 71.1 66.1 72.2 67.9 55.7 63.1 76.0 95.2 96.2 94.2 111.3 1 2 —Profits tax accruals 27.5 30.0 28.3 34.0 33.6 27.5 29.7 33.3 40.5 41.1 40.0 46.2 2 3 -Net dividends paid 16.8 18.1 18.8 20.8 20.7 20.0 20.2 22.1 23.6 22.6 24.7 28.2 3 4 = Undistributed profits 21.3 22.9 19.0 17.5 13.6 8.3 13.3 20.7 31.0 32.5 29.6 36.4 4 5 +Foreign branch profits 1.8 1.8 2.1 2.5 2.5 2.3 2.0 2.1 3.7 2.9 4.5 10.7 5 6 -flnvestment valuation adjustment -1.7 -1.8 -1.1 -3.3 -5.1 -4.8 -4.9 -7.0 -17.6 -18.2 -16.9 -34.1 6 7 +Capital consumption allowance 35.2 38.2 41.5 45.1 49.8 53.6 57.7 63.0 67.5 66.5 68.4 70.8 7 8 = Gross internal funds 56.6 61.2 61.5 61.7 60.7 59.4 68.0 78.7 84.6 83.6 85.6 83.7 8 9 Gross investment (10+16) 47.7 53.0 55.7 52.1 54.7 52.7 57.8 64.0 70.8 68.6 72.9 70.2 9 10 Capital expenditures 62.3 76.5 71.4 75.0 83.7 84.0 87.2 102.5 121.5 115.2 127.8 132.2 10 11 Fixed investment 54.4 62.1 64.1 68.6 76.9 78.4 82.1 92.8 108.6 105.8 111.4 116.6 11 12 Plant and equipment 52.3 61.1 61.9 66.5 74.0 75.1 77.1 87.1 103.3 99.9 106.7 111.8 12 13 Home construction .1 -.6 .7 .3 -.3 .2 1.2 .8 -.5 .3 -1.3 -.8 13 14 Multifamily residential 1.9 1.7 1.6 1.8 3.2 3.1 3.8 4.9 5.8 5.7 6.0 5.5 14 15 Change in inventories 3 7.9 14.4 7.3 6.4 6.7 5.7 5.1 9.7 12.9 9.4 16.3 15.7 15 16 Net financial investment -14.5 -23.5 -15.7 -22.9 -28.9 -31.3 -29.4 -38.5 -50.7 -46.6 -54.8 -62.0 16 17 Net acquisition of financial assets 20.2 12.6 16.8 29.0 28.4 12.9 23.1 30.8 40.9 48.7 33.1 55.9 17 18 Liquid assets 2.6 -3.7 4.8 8.0 2.3 -.4 10.6 4.0 6.9 16.4 -2.4 16.7 18 19 Demand deposits and currency .3 .3 1.5 1.7 2.6 .9 .5 -.1 -.3 .7 -1.2 -.2 19 20 Time deposits 2.3 -1.4 2.1 .4 -2.4 1.7 3.6 3.1 1.4 7.3 -4.5 6.1 20 21 U.S. Government securities -2.5 -1.2 -2.5 .3 -2.3 .5 2.2 -2.4 -1.8 -.6 -3.0 -3.3 21 22 State and local obligations .9 -1.0 -.3 .5 -1.0 -.6 1.0 1.0 -.1 1.8 -2.0 1.0 22 23 Commercial paper .5 -.2 4.2 4.2 4.0 .5 2.4 .8 5.2 6.0 4.5 5.9 23 24 Security RP's 9 1.1 -.2 -.2 .9 1.4 -3.4 .8 1.6 2.6 1.3 3.8 7.1 24 25 Consumer credit .2 .5 .3 * .3 .7 .6 1.6 2.0 2.2 1.8 2.2 25 26 Trade credit 14.0 12.0 8.3 18.6 22.7 8.4 5.7 20.0 24.1 20.4 27.8 33.9 26 27 Miscellaneous assets 3.4 3.7 3.5 2.4 3.0 4.2 6.2 5.2 7.9 9.7 6.0 3.1 27 28 Foreign direct investment i o 3.3 3.0 2.7 1.1 2.2 3.6 3.8 1.5 3.6 3.8 3.5 1.6 28 29 Foreign currencies -.3 .1 .1 .5 -.4 -.4 1.4 1.8 2.6 4.3 .9 — 1 29 30 Insurance receivables .4 .6 .7 .8 1.1 .9 1.0 1.9 1.6 1.6 1.6 1.6 30 31 Equity in sponsored agencies * • • • .1 .1 • * * * » * 31 32 Net increase in liabilities 34.8 36.1 32.5 51.9 57.4 44.2 52.5 69.3 91.6 95.3 88.0 117.9 32 33 Net funds raised in markets 20.4 25.3 29.6 31.5 38.9 39.5 46.8 55.3 67.2 72.3 62.0 76.2 33 34 * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 34 35 Debt instruments 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 64.4 55.0 70.1 35 36 Tax-exempt bonds ^ ^ 1 .5 1.8 11..77 1.9 1.6 36 37 5.4 10.2 14.7 12.9 12.0 19.8 18^8 12.2 9.2 88..88 9.5 14.3 37 38 Mortgages 3.9 4.2 4.5 5.7 4.6 5.2 11.4 15.6 16.1 16.8 15.5 12.4 38 39 Home mortgages .1 -.5 .6 .2 -.2 .2 1.0 .6 -.4 .2 -1.1 -.6 39 40 Multifamily mortgages .9 .7 .8 .7 1.2 1.5 2.6 3.0 2.5 2.7 2.2 2.2 40 41 2.9 4.0 3.1 4.8 3.7 3.6 7.9 12.0 14.1 13.8 14.3 10.9 41 42 Bank loans n.e.c 10.5 8.3 6.6 9.6 11.8 5.6 4.4 13.5 30.6 39.2 22.1 32.9 42 43 Open-market paper -.3 1.0 1.5 1.6 2.7 2.6 -1.5 -.5 -.3 -3.9 3.3 6.8 43 44 Finance company loans .6 -.1 -.3 1.7 4.3 .4 1.9 2.8 2.0 1.4 2.5 2.2 44 45 U.S. Government loans .3 .4 .2 .2 .1 .3 .2 .2 .3 .4 .3 -.1 45 46 Profit tax liability 2.2 .2 -4.7 2.9 -3.3 -3.7 2.0 -.1 2.3 2.6 2.1 5.3 46 47 Trade debt 12.1 10.6 7.4 17.2 21.0 7.4 3.8 13.7 19.6 18.6 20.7 31.0 47 48 Miscellaneous liabilities .1 .1 .3 .3 .8 1.0 -.1 .4 2.5 1.9 3.2 5.3 48 49 Discrepancy 8.9 8.2 5.8 9.6 6.0 6.7 10.2 14.8 13.8 15.0 12.6 13.5 49 50 Memo—Net trade credit 1.8 1.4 .9 1.4 1.8 .9 1.9 6.3 4.5 1.8 7.1 2.9 50 51 Profits tax payments 25.8 30.6 32.3 32.2 36.4 30.3 27.8 33.7 38.1 38.7 37.5 41.4 51 Per cent ratios: 52 Effective tax rate 41.9 42.2 42.8 47.0 49.5 49.4 47.0 43.8 42.6 42.7 42.4 41.5 52 53 Capital outlays/internal funds 110.1 125.1 116.2 121.6 137.8 141.4 128.3 130.1 143.6 137.8 149.3 157.9 53 54 Credit market borrowing/capital expenditures... 32.8 31.4 38.1 42.3 42.4 40.2 40.6 43.3 49.2 55.9 43.1 53.0 54 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.6 FLOW OF FUNDS • OCTOBER 1974 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT-Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 19742' Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI State and local governments—General funds i 1 Total receipts, NIA basis 75.5 85.2 93.5 107.1 119.7 135.0 152.2 177.2 193.5 191.1 195.9 202.7 1 2 Total expenditures, NIA basis 74.5 83.9 95.1 107.5 119.0 133.2 148.8 164.9 184.4 179.3 189.4 200.1 2 3 Net surplus, NIA basis 1.0 1.3 -1.6 -.3 .7 1.8 3.4 12.3 9.2 11.8 6.5 2.6 3 4 —Retirement credit to households 3.3 4.2 4.1 4.8 5.5 6.3 6.3 7.9 9.4 9.9 9.0 8.9 4 5 = Gross saving -2.3 -3.0 -5.6 -5.2 -4.8 -4.5 -2.9 4.5 -.3 1.9 -2.4 -6.3 5 6 Net financial investment -3.2 -2.8 -5.1 -4.9 -9.3 -4.3 -12.1 -2.7 -5.4 -5.0 -5.8 -8.2 6 7 Net acquisition of financial assets 4.8 4.0 3.4 5.6 7.9 7.6 6.4 12.2 7.9 5.8 10.0 7.i 7 8 Total deposits and currency 2.0 2.1 3.6 3.0 -4.5 7.2 8.2 8.3 6.9 8.4 5.4 6.1 8 9 Demand deposits and currency -.4 .8 1.2 -.2 1.4 -2.9 1.0 1.5 -.3 .2 -.8 -1.1 9 10 Time deposits 2.4 1.3 2.4 3.2 -5.9 10.0 7.2 6.8 7.2 8.2 6.3 7.2 10 11 Credit market instruments 2.8 1.8 -.3 2.3 6.4 .3 -2.0 3.6 .4 -3.1 4.0 .6 11 12 U.S. Government securities 2.8 1.9 -.4 2.2 6.4 .2 -1.8 3.4 .2 -3.7 4.1 .3 12 13 Direct 2.8 2.5 -.8 -.5 3.1 .9 -1.3 4.0 1.2 -.3 2.6 « 13 14 U.S. Government agency securities * -.6 .4 2.7 3.4 -.8 -.5 -.6 -1.0 -3.4 1.4 .3 14 15 State and local obligations -.1 * • « .1 .2 -.3 .2 .2 .5 -.1 .3 15 16 Home mortgages « • . 1 -.1 * * * • * * 16 17 Taxes receivable .1 .1 .2 .3 * .1 .3 .3 .6 .6 .6 17 18 Net increase in liabilities 8.0 6.8 8.6 10.4 11.2 11.8 18.5 14.9 13.3 10.8 15.8 15.5 18 19 Credit market borrowing 7.7 6.3 7.9 9.8 10.7 11.3 17.8 14.2 12.3 9.8 14.7 14.6 19 20 State and local obligations 7.3 5.6 7.8 9.5 9.9 11.2 17.5 13.8 11.9 9.9 13.9 14.9 20 21 Short-term .6 .7 1.8 .1 2.8 2.3 2.5 -.7 -.2 -1.5 1.0 .4 21 22 Other 6.7 5.0 5.9 9.4 7.2 8.9 15.0 14.5 12.2 11.5 12.9 14.4 22 23 U.S. Government loans .3 .6 .2 .3 .7 .1 .4 .3 .3 -.1 .8 -.2 23 24 Trade debt .4 .5 .6 .6 .5 .5 .7 .7 1.1 1.1 1.1 .9 24 25 Discrepancy (5-6) .9 -.2 -.5 -.3 4.5 -.2 9.1 7.1 5.1 6.9 3.4 1.9 25 U.S. Government 2 1 Total receipts, NIA basis 124.7 142.5 151.2 175.0 197.3 192.0 198.5 227.2 258.5 252.0 265.0 285.8 1 2 Total expenditures, NIA basis 123.5 142.8 163.6 181.5 189.2 203.9 220.3 244.7 264.1 261.3 267.0 286.1 2 3 Net surplus, NIA basis 1.2 -.2 -12.4 -6.5 8.1 -11.9 -21.9 -17.5 -5.6 -9.3 -2.0 -.3 3 4 —Insurance credits to households 3 1.4 1.4 1.4 1.3 1.6 2.5 2.9 3.2 2.1 3.1 1.2 .8 4 5 = Gross saving -.2 -1.6 -13.8 -7.8 6.5 -14.4 -24.8 -20.7 -7.8 -12.3 -3.2 -1.2 5 6 -.9 -.8 -12.8 -8.4 6.1 -15.2 -24.9 -21.1 -7.7 -13.6 -1.7 -.3 6 7 Net acqusisition of financial assets 3.0 5.4 2.9 7.4 3.7 .7 4.2 4.3 7.9 .8 7.9 7 8 Gold, SDR's and official foreign exhange^. ... .1 -.2 .4 2.0 1.4 -2.0 -2.2 -.3 * -.1 * 1.0 8 9 Demand deposits and currency -1.4 -.1 1.0 -1.7 1.1 2.5 3.3 -1.0 -1.8 3.2 -6.8 -1.6 9 10 Time deposits * * * -.2 .3 .1 .1 -.2 .2 -.6 .3 10 11 Credit market instruments 2.8 4.9 4.6 4! 9 2.9 2.8 3.2 2.6 3.0 .9 5.0 2.6 11 12 Sponsored agency issues * 1.3 —. 1 -1.3 -.1 * » » 4> * 12 13 Home mortgages -.1 .6 .7 .1 -.1 -.6 -1.2 -2.5 . 1 .1 13 14 Other mortgages • .2 .2 .6 .5 .4 .4 .6 .3 .9 * 14 15 Other loans 2.9 2.8 3.8 3'.7 3.5 2.6 3.2 2.9 3.6 3.1 4.0 2.5 15 16 Taxes receivable 1.2 -.7 -4.4 1.7 -2.6 -2.3 1.4 -.8 2.2 2.3 2.1 4.6 16 17 Trade credit .4 1.2 1.5 .9 -.8 -1.7 -.8 .3 .9 -.3 .1 17 18 Miscellaneous * .4 -.1 — .2 , 1 .3 .1 .1 1.0 .4 1.5 1.1 18 19 Net increase in liabilities 3.9 6.2 15.7 15.9 -2.5 15.9 29.1 21,0 12.0 21.5 2.6 8.2 19 20 Treasury currency & SDR certificates 5 .2 .9 .7 .3 .6 .5 .5 .4 .6 .3 .2 20 21 Credit market instruments 1.8 3.6 13.0 13A -3.6 12.8 25.5 17.3 9.7 17.8 1.6 8.2 21 22 Savings bonds .6 .7 .9 -.4 .3 2.4 3.3 2.7 3.6 1.9 3.2 22 23 Direct excluding savings bonds .7 1.7 8.0 9.9 -.9 12.6 23.6 10.6 5.0 13.1 -3.0 3.8 23 24 Agency issues and mortgages 6 .5 1.3 4.1 3.1 -2.4 -.1 -.5 3.4 2.0 1.2 2.8 1.2 24 25 Life and retirement reserves 1.4 1.4 1.4 1.3 1.6 2.5 2.9 3.2 2.1 3.1 1.2 .8 25 26 Trade debt .5 .7 .6 * -.3 -.6 -.7 -.1 .1 -.3 .6 -.8 26 27 Miscellaneous .7 1.2 1.3 1.1 -.4 .6 .6 .4 .2 .6 -.2 -.8 27 28 Discrepancy (5-6) .6 -.8 -1.0 .6 .4 .8 .1 .4 -.1 1.3 -1.4 -.9 28 29 Memo: Corporate tax receipts, net 28.1 32.8 35.1 35.0 39.2 33.4 32.0 37.3 41.6 41.5 41.6 45.4 29 Federally sponsored credit agencies» 1 Current surplus .1 .1 .1 .1 .1 .1 .1 .2 .2 .3 .3 1 2 Net acquisition of financial assets 2. 5.1 3.2 9.2 10.8 3.4 6.6 ; 22.0 18.8 25.2 19.4 2 3 Demand deposits and currency * « « * * .1 4' 1 « .2 -.1 3 4 Credit market instruments 2.: 5.1 -.1 3.2 8.9 lO.C 3.2 7.Ci 20.3 18.3 22.2 20.0 4 5 U.S. Government securities l.C —, 1 -.4 1.9 -1.2 -.4 ^ 1.3 -.7 3.4 -3.0 5 6 Residential mortgages 1.9 1 1 K6 3.9 5.4 5.6 5.5 i 8.4 7.2 9.6 11.5 6 7 Farm mortgages .1 .1 .5 .6 .5 .1 1.2I 2.C 1.9 2.0 2.4 7 8 Other loans 1. i.e -1.8 1.2 4.8 2.3 -2.C .8; 8.5 9.9 7.2 9.1 8 9 To coops (BC) .2 .7 .1 .2 .3 i .3 1.0 -.4 .6 9 10 To farmers (FICB) .A .t .2 .6 r .1 [ 1.1 .9 1.3 1.7 10 11 To S & L's (FHLB) .S ) -2.t 5 .9 4.C 1.3 ( -2.'f i ' 7.2 8.C 6.3 6.8 11 12 Miscellaneous assets -.1 I " * 4 .3 .8t i ^ 1.-3 .5 2.9 -.4 12 13 Net increase in liabilities . 2. 5.( ) ? i.i 9.1 ' 10.Si 3.:i 6.t > 21.i 18.5 25.C 19.1 13 14 Credit market instruments 2. 4.{ J -.( 5 3.1> 8.i{ 8.:I 3J\ 6.: I 19.e) n.A t 21.8i 14.1 14 1 1 5 6 S U p .S o . n s G o o re v d e r a n g m e e n n cy t l i o ss a u n e s s 1. 5.; 2 I - - . . < : 1 5 3.: ) I _ 9 .1 ^J I 8.:I 3.f . \ .... 6 .. . :I 19.e> 17.^t 21.8; 14.1 1 1 5 6 17 Miscellaneous liabilities I 5 -.: J J 2.i s'-'.i i "'2.:I " u:t '"3.:I '4;9 17 18 Discrepancy 1 • .] I .1 I .] k _ J1 i* -.1 [ ' ' -.1 18 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974P Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Monetary authorities 1 1 Current surplus. • • * * * • -.1 .1 .1 .1 .1 .2 1 2 Net acquisition of financial assets.. 2.3 4.2 4.9 3.6 4.2 5.3 8.3 2.2 7.8 9.0 6.7 11.5 2 3 Gold and foreign exchange 2 -1.3 -.3 -.5 -1.2 -.1 -1.4 -.8 -.4 -.2 -.4 * .2 3 4 Treasury currency and SDR ctfs. .2 .7 .5 .2 .1 .7 .5 .7 .4 .4 .4 .4 4 5 F.R. float -.4 .3 .1 .9 « .8 -.4 -.9 — 1 1 -.7 .5 5 6 F.R. loans to domestic banks... -.1 .1 * * • .2 1.9 -.7 -'.2 -1.3 4.4 6 7 Credit market instruments 3.8 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 10.1 8.3 6.2 7 8 U.S. Government securities... 3.7 3.5 4.8 3.8 4.2 5.0 8.7 .4 9.3 10.2 8.3 5.7 8 9 Acceptances 1 * « —. 1 • • .2 -.2 * —. 1 * .5 9 10 Bank loans n.e.c » « 10 11 Net increase in liabilities 2.2 4.2 4.8 3.6 4.1 5.3 8.4 2.1 7.7 8.8 6.6 11.4 11 12 Member bank reserves .4 1.3 1.3 .8 .2 2.1 3.6 -2.1 1.4 -.5 3.3 6.5 12 13 Vault cash of coml. banks 3 .3 .6 .5 1.3 .1 -.3 .5 1.1 2.0 -1.0 5.0 -4.3 13 14 Demand deposits and currency.. 2.0 2.3 3.0 1.5 3.3 3.1 4.4 3.2 3.4 9.7 -2.9 9.4 14 15 Due to U.S. Government * .2 .9 -1.0 .5 -.4 .9 -.5 3.9 -4.9 • 15 16 Due to rest of the world 4 -.1 .2 * .1 -.1 * .1 — 1 -.1 1 -.3 .3 16 17 Currency outside banks 2.1 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 s'.i 2.2 9.1 17 18 Taxes payable -.5 * * * * * * 1 .1 .1 .1 18 19 Miscellaneous liabilities * -.1 « .1 .5 .4 -.2 -.1 !8 .5 1.0 -.4 19 Commercial bankings 1 Current surplus 2.1 2.5 2.3 3.0 3.7 3.3 2.9 3.5 4.4 4.3 4.5 4.8 1 2 Plant and equipment. .9 1.0 1.0 1.3 1.9 2.1 2.3 2.7 3.0 2.9 3.2 3.1 2 Net acquisition of financial assets.. 29.8 21.3 40.9 46.3 22.0 45.2 58.5 78.3 100.2 113.9 86.6 89.0 3 Demand deposits and currency.. « * .1 * * .1 .1 .2 .3 * .6 -.3 4 Total bank credit 28.6 18.1 37.4 40.1 17.2 36.6 51.4 75.4 83.3 89.7 76.8 77.3 5 Credit market instruments 28.7 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 93.7 79.5 78.0 6 U.S. Government securities. -2.8 -3.1 9.4 3.3 -10.0 10.4 6.9 6.5 -1.3 -4.1 1.6 4.0 7 Direct -3.4 -3.4 6.5 2.1 -9.7 6.9 3.1 2.4 -8.8 -9.7 -7.9 -1.6 8 Agency issues .6 .3 2.9 1.2 -.3 3.5 3.8 4.1 7.6 5.6 9.5 5.6 9 10 Other securities and mortgages. 10.8 7.1 14.6 15.5 5.6 13.9 23.8 25.7 25.9 23.3 28.5 21.6 10 11 State and local obligations... 5.2 2.3 9.1 8.6 .2 10.7 12.6 7.2 5.7 3.6 7.8 7.2 11 12 Corporate bonds -.1 .1 .8 .3 _, 1 .8 1.3 1.7 .5 -.3 1.3 12 13 Home mortgages 3.2 2.4 2.5 3.5 3!O .9 5.7 9.0 11.0 11.0 11.0 8:3 13 14 Other mortgages 2.5 2.3 2.2 3.2 2.4 1.6 4.2 7.8 8.8 9.1 8.4 6.0 14 15 Other credit excluding security. 20.7 13.5 11.9 20.0 22.7 10.7 19.8 38.4 62.0 74.5 49.4 52.5 15 16 Consumer credit 4.6 2.6 2.4 5.7 4.7 2.9 6.7 10.1 10.6 12.1 9.1 4.8 16 17 Bank loans n.e.c 16.4 9.8 7.5 15.7 17.6 5.8 12.4 28.5 52.1 63.4 40.9 44.5 17 18 Open-market paper -.3 1.1 2.0 -1.4 •5 2.0 .8 -.2 -.8 -.9 -.6 3.2 18 19 Corporate equities. .1 .1 .1 J * . 1 * . I J . 1 19 20 Security credit -.2 .6 1.5 I!3 -1.1 1.4 .8 4.8 -3;4 -4.1 -2.7 -.7 20 21 Vault cash and member bank reserves. .7 1.9 1.8 2.0 .3 1.8 4.1 -1.0 3.5 -1.5 8.4 2.2 21 22 Other interbank claims 1 * 1.0 .7 1.6 1.7 1.7 1.4 6.0 14.1 -2.0 5.0 22 23 Miscellaneous assets 5 1.2 .7 3.4 2.8 5.0 1.2 2.3 7.2 11.6 2.9 4.9 23 24 28.5 20.1 39.1 44.4 19.8 43.6 56.8 76.3 97.3 111.1 83.5 86.6 24 25 Demand deposits, net. 5.2 1.6 12.0 13.3 4.9 U.2 13.0 16.3 12.6 9.8 15.4 2.1 25 26 U.S. Government... -1.0 -.5 .2 -.2 « 2.9 2.2 .7 -1.0 -.3 -1.7 -2.7 26 27 Other 6 6.2 2.1 11.8 13.5 4.9 8.3 10.8 15.6 13.6 10.1 17.1 4.7 27 28 Time deposits . 20.1 13.3 23.9 20.7 -9.5 38.0 41.4 42.3 50.9 61.1 40.8 62.3 28 29 Large negotiable CD's 3.7 -.6 4.7 3.1 -12.5 15.2 8.7 9.8 20.0 30.2 9.8 32.0 29 30 Other at commercial banks. 16.4 13.8 19.1 17.4 2.9 22.4 32.4 33.0 30.3 30.3 30.4 30.2 30 31 At foreign banking agencies. .1 * .1 .2 .2 .4 .3 -.5 .6 .6 .6 .1 31 32 Corporate equities _ 1 * * -.1 * .6 1.2 1.2 1.9 1.0 32 33 Credit market debt 7 1.9 * . 1 1.4 5.8 -5'.0 3.2 4.4 10.6 12.8 7.7 33 34 Federal Reserve float -.4 .3 .1 .9 « .8 .1 -.4 -.9 -1.1 — .7 .5 34 35 Borrowing at Federal Reserve Banks. .1 .2 -.3 1.9 -.7 -.2 -1.3 4.4 35 3 3 6 7 O Ta th xe e s r i p n a te ya rb b a le n k claims * « l.C .1 1.6 1 . . 3 7 1.1 * ' - 1 . . 2 4 6.0 14 . . 2 1 -2.0 * 5 . . 2 0 3 3 6 7 38 Miscellaneous liabilities IJ 5.C 2.3 7.6 16.9 -3.1 -2.1 ' 9.3 17.5 12.51 22.4 3.6 38 39 Liabilities to foreign affiliates. 2.9 2.3 7.9 -6.9 -4.1 .9 1.1 .8 1 1.3 5.6 39 40 Other IJ 2.C 5.3 8.9 3.2 1.3I 8.4 16.4 11. ' 21.1 -2.1 40 41 Discrepancy. ^ -.1 -.A -1.1 i -1.1 -1.6 -l.A ^ -l.l -.7 41 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.8 FLOW OF FUNDS • OCTOBER 1974 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT-Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974P CCaatteeggoorryy 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Commercial banks 1 Current surplus 2.1 2.5 2.3 3.0 3.7 3.3 2.9 3.5 4.4 4.3 4.5 4.8 1 2 Plant and equipment .9 1.0 1.0 1.3 1.9 2.1 2.3 2.7 3.0 2.9 3.2 3.1 2 3 Net acquisition of financial assets 29.9 20.3 39.8 43.5 13.6 38.0 56.6 77.3 88.6 95.4 81.8 81.7 3 4 Total bank credit 28.5 17.5 36.8 39.6 11.6 34.7 51.1 73.5 77.9 85.2 70.7 73.3 4 5 Credit market instruments 28.4 17.0 35.3 38.3 12.7 33.3 50.3 68.8 80.9 88.3 73.5 73.3 5 6 U.S. Government securities -2.9 -3.1 9.2 3.2 -10.1 10.5 7.0 6.0 -1.3 -3.8 1.2 4.0 6 7 Direct... -3.4 -3.4 6.3 2.0 -9.8 7.0 3.2 2.1 -8.8 -9.2 -8.3 -1.4 7 8 Agency issues .6 .3 2.9 1.2 -.3 3.5 3.8 3.9 7.5 5.5 9.4 5.4 8 9 Other securities and mortgages 10.7 7.0 14.3 15.5 5.3 13.6 23.9 25.3 25.7 23.3 28.0 21.4 9 10 State and local obligations 5.2 2.3 9.0 8.6 .2 10.5 12.8 7.1 5.6 3.6 7.7 7.0 10 11 Corporate bonds -.1 .1 .8 .3 -.1 .8 1.3 1.4 .4 -.3 1.2 .1 11 12 Home mortgages 3.1 2.4 2.4 3.5 3.0 .7 5.6 9.0 11.0 11.2 10.8 8.3 12 13 Other mortgages 2.5 2.3 2.2 3.2 2.3 1.6 4.2 7.8 8.7 8.9 8.4 6.1 13 14 Other credit excluding security 20.6 13.1 11.8 19.5 17.5 9.1 19.4 37.6 56.5 68.7 44.3 47.9 14 15 Consumer credit 4.6 2.6 2.4 5.7 4.7 2.9 6.7 10.1 10.6 12.1 9.1 4.8 15 16 Bank loans n.e.c 16.3 9.3 7.3 15.3 12.3 4.2 11.9 27.7 46.7 57.6 35.8 39.9 16 17 Open-market paper -.3 1.1 2.0 -1.4 .5 2.0 .8 -.2 -.8 -.9 -.6 3.2 17 18 Security credit .1 .5 1.5 1.3 -1.1 1.4 .8 4.7 -3.0 -3.1 -2.8 « 18 19 Interbank claims .7 2.0 1.8 2.1 .4 2.0 4.0 1.5 5.8 4.6 7.0 4.4 19 20 Vault cash and member bank reserves .7 1.9 1.8 2.0 .3 1.8 4.1 -1.0 3.5 -1.5 8.4 2.2 20 21 Deposits at foreign banking agencies. * * * « .1 .2 -•1 2.5 2.3 6.1 -1.4 2.2 21 22 Miscellaneous assets .7 .9 1.3 1.9 1.6 1.3 1.5 2.3 4.9 5.6 4.2 4.0 22 23 Net increase in liabilities 28.6 19.1 38.1 41.7 11.5 36.3 54.9 75.3 85.7 92.6 78.8 79.3 23 24 Demand deposits, net 5.5 1.6 11.9 12.3 4.6 4.6 13.0 20.1 13.0 9.1 16.9 -5.6 24 25 U.S. Government -1.0 -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -.3 -1.7 -2.7 25 26 Other 6.4 2.1 11.6 12.5 4.6 1.7 10.7 19.4 14.0 9.4 18.6 -2.9 26 27 Time deposits 20.0 13.3 23.8 20.6 -9.7 37.6 41.1 42.8 50.3 60.5 40.2 62.2 27 28 Large negotable CD*s 3.7 -.6 4.7 3.1 -12.5 15.2 8.7 9.8 20.0 30.2 9.8 32.0 28 29 Other 16.4 13.8 19.1 17.4 2.9 22.4 32.4 33.0 30.3 30.3 30.4 30.2 29 30 Corporate equities -.1 * * -.1 * .1 .6 1.2 1.2 1.9 .5 1.0 30 31 Corporate bonds .8 .1 .3 .3 -.2 .1 .9 1.1 * -.3 .4 1.8 31 32 Security RP's 1.1 -.2 -.2 1.0 1.6 -3.3 1.1 1.7 3.3 3.0 3.6 7.9 32 33 Profit tax liabilities * -.1 -.1 .1 .3 « -.2 .1 .2 * .2 33 34 Interbank liabilities -.4 .3 1.0 1.6 1.6 2.5 1.6 .5 2.1 6.8 -2.6 7.6 34 35 Federal Reserve float -.4 .3 .1 .9 * .8 .1 -.4 -.9 -1.1 -.7 .5 35 36 Borrowing at Federal Reserve Banks -.1 .1 * • * .2 -.3 1.9 -.7 -.2 -1.3 4.4 36 37 Demand deposits of foreign banking agencies. .1 .9 .7 .8 1.2 1.3* -1.2 2.6 5.4 -.3 1.7 37 38 Time deposits of foreign banking agencies.... .1 .3 . 1 .2 .2 38 39 Loans from aflRliates .6 .1 .3 — 4 -.4 '4 — 1 2 - 4 39 40 Loans from foreign banking agencies -.1 -.1 .1 * .1 .1 .2 1.4 2.1 .7 1.3 40 41 1.8 4.1 1.4 6.1 13.5 -5.6 -3.2 8.1 15.7 11.5 19.9 4.2 41 42 Liabilities to foreign branches .3 2.7 .2 1.8 6.8 -7.2 -4.8 .5 .4 .2 .5 3.2 43 Other 1.5 1.4 1.2 4.3 6.7 1.5 1.5 7.7 15.3 11.2 19.4 1.0 44 Discrepancy .2 -.4 -.1 -.3 -.4 -1.1 -1.1 -1.6 -1.4 -1.7 -.7 44 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.9 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f CCaatteeggoorryy 11996655 11996666 11996677 11996688 11996699 11997700 11997711 11997722 11997733 HI H2 HI Domestic affiliates of commercial banks 11 NNeett aaccqquuiissiittiioonn ooff ffiinnaanncciiaall aasssseettss 4444444.......5555555 -------.......9999999 .......2222222 -------.......6666666 1111111.......3333333 2222222.......2222222 .......4444444 1111111.......8888888 1111111 2 Bank loans n.e c 3333333.......9999999 -------1111111.......0000000 -------.......1111111 -------.......2222222 1111111.......7777777 1111111.......8888888 1111111.......6666666 2222222.......1111111 2222222 3 Loans to affiliate banks .......6666666 .......3333333 -------.......4444444 -------.......4444444 .......4444444 -------1111111.......2222222 -------.......4444444 3333333 4444444.......5555555 -------.......9999999 .......2222222 -------.......6666666 1111111.......3333333 2222222.......2222222 .......4444444 1111111.......8888888 4444444 5 Commercial paper issues 4444444.......2222222 -------1111111.......9999999 -------.......4444444 .......7777777 2222222.......2222222 3333333.......3333333 1111111.......2222222 4444444.......1111111 5555555 6 Miscellaneous liabilities .......3333333 1111111.......0000000 .......6666666 -------1111111.......3333333 -------1111111.......0000000 -------1111111.......1111111 -------.......8888888 -------2222222.......4444444 6666666 Edge Act corporations and agencies of foreign banks 1 Net acquisition of financial assets -.2 .7 .7 2.5 2.7 7.7 1 .2 1.2 9.9 16.5 3.3 4.9 1 2 3 Cre U d .S it . m G a o r v k e e r t n i m ns e t n ru t m se e c n u ts ri ties . . 2 1 -.1 .4 . . 4 1 .4 * 1.3 * _ 2 .7 1 _, ^. . 2 1 1 . . 3 7 3. . 9 1 3.9 3. . 9 2 2. . 7 1 3 2 4 State and local obligations * * .1 -.1 * '.2 .2 * * » .1 .1 4 5 Corporate bonds * * * .3 * * .1 * 5 6 Bank loans n.e.c .1 .4 .1 .4 1.3 2.6 .5 1.1 3.7 3.9 3.5 2.5 6 7 Open-market paper 7 8 Corporate equities. . 1 . 1 ..11 .1 * J » . 1 . 1 .1 8 9 Security credit.. -.3 .1 . 1 -.4 -1.0 .1 -.7 9 10 Demand deposits at commercial banks. .1 .1 .9 .7 .8 1.2 1,. 3 -1.2 2.6 5.4 -.3 1.7 10 11 Time deposits at commercial banks.... . 1 * .3 ..11 . 1 .2 .2 11 12 Loans to banks -.1 _ 1 .1 » .1 .1 J .2 11..44 2.1 .7 1.3 12 13 Miscellaneous assets -.2 '.2 -.7 1.4 .3 3.5 A « 2.3 5.8 -1.3 -.3 13 14 Net increase in liabilities -.2 .7 .7 2.5 2.7 7.7 1.. 2 1.2 9.9 16.5 3.3 4.9 14 15 Demand deposits in money stock. -.2 * .1 1.0 .3 6.6 * -3.7 -.4 .7 -1.5 7.6 15 16 Time deposits .1 * .1 .2 .2 .4 .3 -.5 .6 .6 .6 1 16 17 Deposits of banks * • * • .1 .2 —, 1 2.5 2.3 6.1 -1.4 2^2 17 18 Loans from banks * .1 * .1 .2 .1 I .6 .8 5.1 6.8 3.4 -6.1 18 19 Miscellaneous liabilities... * .6 .5 1.2 1.9 .4 .6 2.0 2.3 2.3 2.2 1.1 19 20 Due to foreign affiliates. -.2 .3 .5 .5 1.2 .2 .7 .4 .7 .6 .8 2.4 20 21 Other .3 * .7 .8 .2 -i. .3 1.6 1.5 1.7 1.4 -1.3 21 Banks in U.S possessions 1 Net acquisition of financial assets .1 .3 .3 1.1 .5 .5 .5 .5 -.2 1.1 .7 1 2 Demand deposits and currency « * * » .2 * .6 -.3 2 3 Credit market instruments . 1 .1 .1 .2 .3 -.3 .5 -.1 3 4 * * * .2 —, 1 -.3 .2 -.1 4 5 State and local obligations » * 4> . I * .1 * 5 6 Corporate bonds « • * ' • * * 6 7 Home mortgages .1 * * .1 * -.2 .2 * 7 8 Commercial mortgages » * .1 * . 1 * • 8 9 Miscellaneous assets * .1 .1 .9 .1 * .1 * 1.1 9 10 Net increase in deposit liabilities .1 .3 .3 .3 1.1 .5 .5 .5 .5 -.2 1.1 .7 10 NOTE.—^Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.10 FLOW OF FUNDS • OCTOBER 1974 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT-Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Private nonbank financial institutions—Total 1 Current surplus 1.4 1.6 1.3 .2 -.1 1.7 4.4 5.0 5.7 5.4 6.0 5.6 1 2 Physical investment (life insurance)... .4 .5 .6 1.1 1.2 1.2 1.8 2.1 2.0 2.6 1.4 1.6 2 3 Net acquisition of financial assets 42.5 35.6 43.2 52.4 46.4 55.2 84.9 107.5 87.7 100.3 75.1 83.7 3 4 Demand deposits and currency .4 -.3 .7 .9 -.4 1.0 1.1 1.6 2.0 2.0 2.0 .1 4 5 Time deposits (MSB) * * * * -.1 .2 .2 .2 ^ .1 .2 5 6 Savings and loan shares (Cr. union). —. 1 -.4 .2 -.2 -.1 .1 .1 .2 * 1.0 -iii "i!6 6 7 Corporate equities 6.0 5.9 9.0 10.7 12.2 11.3 19.3 15.9 13.4 13.0 13.8 12.2 7 8 Credit market instruments 34.2 27.9 27.6 36.6 37.1 39.8 60.1 82.8 72.2 85.3 59.2 64.1 8 9 U.S. Government securities -.1 .1 -2.3 2.0 -2.2 3.8 2.6 7.1 .9 3.1 -1.2 -.7 9 10 Sute and local obligations -.5 .7 1.2 1.2 1.0 1.8 4.4 5.1 3.6 2.6 4.6 3.0 10 11 Corporate and foreign bonds 7.8 9.2 11.9 9.9 7.4 11.6 13.9 13.2 10.9 12.7 9.1 15.8 11 12 Home mortgages 11.9 5.2 8.0 8.6 8.6 7.6 17.8 30.7 26.5 33.2 19.7 19.6 12 13 Other mortgages 7.8 6.7 6.7 7.2 7.6 10.1 14.6 16.8 15.4 16.5 14.3 14.2 13 14 Consumer credit 4.3 2.7 1.5 3.8 4.8 1.8 3.3 6.4 9.0 9.9 8.2 5.7 14 15 Other loans 2.9 3.2 .6 3.8 9.9 3.1 3.5 3.5 5.9 7.3 4.5 6.3 15 16 Security credit .4 * 3.2 2.8 -3.5 -1.3 2.5 3.9 -4.6 -5.5 -3.6 -.1 16 17 Trade credit .2 .2 .3 .3 .4 .5 .3 1.2 .7 .7 .6 .6 17 18 Miscellaneous assets 1.5 2.2 2.1 1.3 .8 3.6 1.4 1.7 3.9 3.5 4.2 5.2 18 19 Net increase in liabilities 41.5 36.1 45.0 53.1 49.2 55.0 82.2 103.5 82.3 95.1 69.4 78.2 19 20 Time and savings accounts 13.1 6.9 17.0 12.7 7.9 17.0 40.6 46.1 28.1 38.9 17.3 27.7 20 21 Insurance and pension reserves 15.6 18.1 18.2 18.8 19.7 21.8 24.8 27.1 29.5 29.0 30.0 27.1 21 22 Corporate equities 3.3 3.8 3.1 6.5 6.1 4.5 2.7 1.3 -.4 .3 -1.1 2.0 22 23 Credit market instruments 6.0 3.2 -.5 7.1 13.0 4.7 6.2 15.9 21.0 23.7 18.2 14.3 23 24 Corporate bonds 1.9 .8 1.0 .8 1.7 3.0 4.2 5.8 2.3 3.3 1.3 1.9 24 25 Mortgage loans in process * -.9 1.0 .2 * .6 2.0 1.2 -1.5 .4 -3.5 * 25 26 Other mortgages .2 .2 .1 .1 .5 .3 .5 .1 .3 26 27 Bank loans n.e.c "'2.'3 — 1 1 -2.0 2.4 2.1 -.6 1.4 5.9 8.4 9.4 7.4 7.7 27 28 Other loans 1.9 4^5 -.5 3.5 8.9 1.5 -1.5 2.5 11.5 10.1 12.8 4.5 28 29 Open-market paper 1.2 3.5 2.0 2.6 4.9 .2 1.2 2.5 4.3 2.0 6.6 -2.3 29 30 FHLB loans .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 8.0 6.3 6.8 30 31 Security credit .4 .8 3.2 3.5 -3.0 1.0 1.1 4.1 -3.4 -5.7 -1.2 .5 31 32 Taxes payable .2 * -.1 .2 .1 .2 -.1 .2 .2 .1 .1 32 33 Miscellaneous liabilities 3.0 3.4 4.2 4.4 5.4 5.8 7.0 8.8 7.'4 8.7 6.1 6.6 33 34 Discrepancy « 1.6 2.5 -.2 1.5 .3 * -1.0 -1.7 -2.2 -1.1 -1.5 34 Savings and loan associations 1 Current surplus 1.0 .9 .9 1.0 1.0 1.0 1.2 1.5 1.8 1.8 1.8 1.8 1 2 Net acquisition of financial assets 10.2 4.6 9.7 9.7 9.3 14.1 29.8 37.1 29.2 39.2 19.2 30.3 2 3 Demand deposits and currency i « -.5 -.3 -.4 -.2 .3 .5 .6 .6 .2 1.0 .2 3 4 Credit market instruments 9.6 4.2 9.2 10.2 9.9 11.6 29.2 36.4 27.1 37.9 16.4 27.1 4 5 U.S. Government securities .5 .4 1.6 .7 .3 1.2 5.2 4.3 * 2.7 -2.7 3.2 5 6 Home mortgages 7.1 2.9 6.0 7.2 7.7 7.2 17.3 24.8 22.0 28.7 15.2 18.7 6 7 Other mortgages 1.9 .9 1.5 2.1 1.8 3.0 6.6 7.2 4.9 6.3 3.6 5.0 7 8 Consumer credit . 1 * . 1 .1 .2 .3 .1 .2 .2 .2 .2 .1 8 9 Miscellaneous assets .6 .9 .9 -.1 -.4 2.2 .1 . 1 1.5 1.2 1.8 3.0 9 10 Net increase in liabilities 9.4 4.0 9.3 8.9 8.4 13.3 29.0 35.5 27.4 37.1 17.6 28.6 10 11 Savings shares 8.5 3.6 10.6 7.4 3.9 10.9 27.8 32.6 20.5 26.8 14.2 19.2 11 12 Credit market instruments .8 .1 -1.7 1.1 4.1 1.8 -.1 2.0 6.0 8.4 8.6 12 13 Mortgage loans in process • -.9 1.0 .2 * .6 2.0 1.2 -1.5 .4 -3.5 * 13 14 Bank loans n.e.c .2 .1 -.1 .1 .1 -.1 .7 .7 .3 * .7 1.7 14 15 FHLB advances .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 8.0 6.3 6.8 15 16 Taxes payable • * * * * .1 * * .1 • * 16 17 Miscellaneous liabilities .1 .4 .4 .4 .4 .6 1.2 .9 .9 1.9 -.1 .8 17 18 Discrepancy .2 .3 .5 .3 .1 .2 .3 -.2 -.1 -.3 .2 .1 18, Mutual savings banks 1 Current surplus .3 .2 .1 .2 .3 .3 .4 .4 .6 .5 .6 .6 2 Net acquisitions of financial assets 4.0 2.8 5.4 4.6 3.1 4.7 10.4 11.0 6.0 9.7 2.2 5.5 2 4 3 D Ti e m m e a d n e d p d o e s p its o sits and currency « * * * • • .1• -.1 « . . 1 2 .2 * . . 1 2 .2 . . 2 2 ..... . . 2 -.2 3 4 5 Corporate equities .2 • .2 .3 .2 .3 .5 .6 .6 5 'a 6 Credit market instruments 3.7 2.6 5.0 4.1 2.9 3.8 9.6 9.8 5.0 8.4 1.7 5.7 6 7 U.S. Government securities -.3 -.5 -.3 -.2 -.5 .3 .9 1.4 -.5 .2 -1.2 * 7 8 State and local obligations -.1 -.1 * « • * .2 .5 • .3 -.2 8 9 Corporate bonds -.1 .3 2.1 1.3 .3 1.2 3.9 2.1 -1.1 -.2 -1.9 1.8 9 10 Home mortgages 2.7 1.6 1.8 1.4 1.4 .9 1.3 3.0 2.6 2.7 2.5 1.1 10 11 Other mortgages 1.4 1.1 1.4 1.4 1.3 .9 2.7 2.6 3.1 3.5 2.7 2.2 11 12 Consumer credit . 1 , I .1 .1 . 1 .1 .1 .3 .2 .4 .1 .2 12 1 1 4 3 C Se o c m u m rit e y r c R ia P l ' s p aper ......* ......1. ...... * .1 * . . 2 1 . . 2 1 . . 2 2 -.2 .1 -.1 .7 - 1 .1 .7 -.2 * -.4 .8 1 1 4 3 15 Miscellaneous assets .3 • .3 .2 .4 .3 .3 .3 -.4 15 16 Savings deposits 3.6 2.6 5.1 4.2 2.6 4.4 9.9 10.2 4.7 8.0 1.5 4.6 16 17 Miscellaneous liabilities .1 * .1 .1 .2 .1 , 1 .2 .6 .7 .5 17 18 Discrepancy • * • -.1 « .1 « -.2 -.1 -.5 .4 -.'4 18 NOTE.—^Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.11 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974P Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Credit unions 1 Net acquisition of financial assets 1.0 .8 1.2 1.1 1.4 1.7 2.9 3.4 2.9 4.1 1.7 3.9 1 2 Demand deposits and currency « * .1 * * .2 .1 .1 * * * 2 3 Savings and loan shares _, 1 -.4 .2 -.2 -.1 .1 1 .2 .2 1.0 -1.1 1.6 3 4 Credit market instruments i.'o 1.1 .9 1.3 1.6 1.5 2.6 3.1 2.9 3.1 2.8 2.3 4 5 U.S. Government securities. * ^ 1 .1 * -.2 .4 .8 .8 .2 .3 .2 .2 5 6 Home mortgages * * * * .1 « .2 » 'A * 6 7 Consumer credit 1.0 .9 .7 1.3 1.7 1.0 1.8 2.1 •"2.'7 2.8 2.6 2.1 7 8 Credit union shares 1.0 .8 1.2 1.1 1.4 1.7 2.9 3.4 2.9 4.1 1.7 3.9 8 Life insurance companies 1 Current surplus 1.0 1.1 .8 .6 .9 .8 1.0 1.6 1.8 1.7 1.8 1.9 1 2 Physical investment .4 .5 .6 .7 .8 1.0 1.4 I.O 1.3 1.3 1.2 1.5 2 3 Net acquisition of financial assets 8.7 8.2 8.7 9.8 9.2 9.9 12.7 15.0 16.6 16.4 16.8 15.2 3 4 Demand deposits and currency « • « * .1 * .2 . 1 .4 -.2 -.2 4 5 Corporate equities .7 .3 1.0 I!4 1.7 2.0 3.6 3.5 3.6 4.0 3.1 2.2 5 6 Credit market instruments 7.5 7.7 7.4 7.7 6.7 7.0 8.1 10.3 12.1 11.1 13.0 12.3 6 7 U.S. Government securities -.4 -.4 -.3 -.1 -.3 .1 -.2 .3 .1 .3 —. 1 -.6 7 8 State and local obligations -.3 -.4 .2 * 1 .1 * * * 1 .3 8 9 Corporate bonds 2.8 2.4 3.9 1.5 r.5 5.5 7.0 5.9 5.8 5.9 5.0 9 10 Home mortgages 1.1 .6 -.5 -.7 -1.1 -1.3 -2.1 -2.1 -.5 -1.2 .3 -.3 10 11 Other mortgages 3.8 4.0 3.4 3.2 3.1 3.6 3.2 4.0 4.3 3.3 5.4 5.1 11 12 Open-market paper .1 1 .1 • .9 .8 .6 .2 * 1.5 -1.5 1.2 12 13 Policy loans .5 1.4 .9 1.2 2.5 2.2 1.0 .9 2.2 1.4 3.1 1.7 13 14 Miscellaneous assets .5 .2 .3 .6 .9 .8 .9 1.0 .9 .9 .9 .9 14 15 Net increase in liabilities 7.9 8.0 9.1 9.2 9.3 10.2 13.3 15.3 15.1 15.2 15.0 14.0 15 16 Life insurance reserves 4.7 4.6 5.0 4.6 4.9 5.1 6.1 6.5 7.2 7.1 7.3 7.3 16 17 Pension fund reserves 2.1 2.1 2.6 2.9 2.9 3.3 5.2 6.0 5.2 5.0 5.3 4.4 17 18 Taxes payable * .1 -.1 .2 1 .1 —, 1 * * * • * 18 19 Miscellaneous liabilities 1.2 1.2 1.6 1.5 1.4 1.7 2.1 2.9 2.7 3.0 2.4 2.3 19 20 Discrepancy -.3 .3 .6 -.7 .2 .1 .3 1.0 -1.0 -.8 -1.2 -.9 20 Private pension funds 1 Net acquisition of financial assets ^ 5.5 7.2 6.6 6.4 6.3 7.1 7.3 6.8 7.7 7.0 8.5 6.5 1 2 Demand deposits and currency. * * .4 .3 * .2 -.2 .2 .4 .8 .1 .4 2 3 Corporate equities 3.1 3.7 4.6 4.7 5.4 4.6 8.9 7.1 5.3 4.7 5.9 3.8 3 4 Credit market instruments 2.1 2.6 .7 1.1 .6 2.4 -1.6 -.5 2.0 1.6 2.3 1.2 4 5 U.S. Government securities.. • -.5 -.6 .4 -.2 .2 -.3 1.0 .6 .5 .8 .2 5 6 Corporate bonds 1.5 2.5 1.1 .6 .6 2.1 -.7 -.8 1.6 1.5 1.7 1.9 6 7 Home mortgages .6 .6 .2 * .1 -.6 -.7 -.3 -.4 -.1 -.9 7 8 Miscellaneous assets .3 .9 .8 .4 !3 • .1 .1 .2 1.0 8 State and local Government employee retirement funds 1 Net acquisition of financial assets 2 3.3 4.2 4.1 4.8 5.5 6.3 6.3 7.9 9.4 9.9 9.0 8.9 1 2 Demand deposits and currency * .1 . 1 -.1 .1 .1 , 1 .2 —. 1 .4 -.1 2 3 Corporate equities .4 .5 '.7 1.3 1.8 2.1 3.2 3.5 3.9 4.3 3.5 3.2 3 4 Credit market instruments 2.9 3.7 3.3 3.4 3.8 4.0 3.0 4.3 5.3 5.6 5.0 5.8 4 5 U.S. Government securities .2 .1 -.8 .4 -.3 -.3 -1.6 -.6 .1 .3 -.7 5 6 Direct .1 4> -1.0 -.2 -.5 -.3 -1.2 -.5 -.1 * -.4 6 7 Agency issues .1 .2 .1 .6 .2 * -.3 —. 1 .2 .2 .3 -.3 7 8 State and local obligations -.3 -. 1 _ 1 • -.3 — 1 -.6 -1.0 -.2 -.2 8 9 Corporate bonds 2.3 2.9 3!7 2.6 3'.6 3.8 4^2 5'. 3 5.9 6.6 5.3 6.6 9 10 Mortgages .7 .8 .5 .4 .6 .8 .3 -.3 -.1 .1 -.3 .2 10 Other insurance companies 1 Current surplus. -.1 .5 .4 .1 -.1 .8 1.8 2.0 1.9 2.0 1.8 1.8 1 2 Net acquisition of financial assets... 1.2 2.1 2.0 3.1 2.9 5.5 6.6 7.9 5.6 5.7 5.5 5.9 2 3 Demand deposits and currency.. -.1 « • .1 * 1 .1 * * -.4 .4 « 3 4 Corporate equities .1 .4 .3 .8 1.0 1.0 2.5 3.0 2.2 2.4 2.0 2.0 4 5 Credit market instruments 1.1 1.5 1.4 1.9 1.6 3.9 3.8 3.7 2.8 3.0 2.6 3.3 5 6 U.S. Government securities... -.4 -.7 -.2 -.5 , 1 -.4 -.4 -.1 -.3 .1 -.1 6 7 State and local obligations .4 1.3 1.4 1.0 1.2 U5 3.9 4.8 3.9 3.7 4.1 4.1 7 8 Corporate bonds .6 .6 .7 1.2 .8 2.3 .3 -.7 -1.0 -.3 -1.6 -.9 8 9 Commercial mortgages * * * * * « * • • * * .1 9 10 Trade credit .2 .2 .3 .3 .4 .5 .3 1.2 .7 .7 .6 .6 10 11 Net increase in liabilities. 1.7 1.9 2.2 2.7 3.9 3.9 4.1 5.4 3.7 3.6 3.7 4.0 11 12 Corporate equities .1 .1 .2 .5 .4 .6 .5 .5 .4 .5 .4 n 13 Taxes payable .1 * « « .1 .1 -.1 1 * * * * 13 14 Policy payables 1.5 1.8 2.1 2.5 3.3 3.4 3.6 4:8 3.2 3.2, 3.2 3.6 H 15 Discrepancy. .4 .2 .6 -.2 .9 -.8 -.8 -.4 -.1 • • 15 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.I3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.12 FLOW OF FUNDS • OCTOBER 1974 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT-Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI 1 11 CCuurrrreenntt ssuurrpplluuss ooff ggrroouupp -.7 -1.0 -1.8 -2.2 -1.1 * -.5 -.3 -.6 * -.5 1 Finance companies 1 Net acquisition of financial assets 5.9 2.3 .7 5.2 8.1 .9 4.4 11.0 10.4 10.8 10.0 5.1 1 2 Demand deposits and currency .2 .2 . 1 .1 .1 .2 .3 .3 .2 .3 .2 .2 2 3 Home mortgages .5 -.6 .4 .6 .3 .1 1.1 4.1 1.4 2.0 .7 .4 3 4 Consumer credit 3.2 1.6 .5 2.3 2.8 .5 1.3 3.8 5.9 6.5 5.3 3.3 4 5 Other loans (to business) 2.0 1.1 -.3 2.2 5.0 .1 1.8 2.8 2.9 2.0 3.7 1.3 5 6 Net increase in liabilities 5.2 3.1 1.2 5.7 8.3 1.6 4.2 9.3 9.4 9.8 9.0 4.4 6 7 Corporate bonds 1.9 .8 1.0 .8 1.6 2.5 3.8 5.4 1.8 2.7 .9 1.5 7 8 Bank loans n.e.c 2.2 -1.2 -1.8 2.3 1.9 -1.1 * 3.8 4.1 4.9 3.3 2.0 8 9 Open-market paper 1.2 3.5 2.0 2.6 4.9 .2 .4 * 3.5 2.3 4.8 1.0 9 10 Taxes payable .1 * -.1 * * * * * .1 * .1 .1 10 Real estate investment trusts 1 Physical investment .3 .4 1.1 .7 1.2 .2 .1 1 2 Multifamily structures.... .1 .1 .4 .2 .4 .1 • 2 3 Nonresidential structures. .2 .3 .5 .2 .1 3 4 Financial assets 1.0 2.6 5.0 5.6 6.1 5.1 3.0 4 5 Home mortgages .1 .7 1.4 1.3 1.3 1.2 .6 5 6 Multifamily mortgages. .3 .7 1.2 .7 .9 .6 .7 6 7 Commercial mortgages. .4 1.1 2.3 2.5 2.6 2.4 1.0 7 8 Miscellaneous assets... .1 .2 1.1 1.3 .9 .7 8 9 Financial sources of funds 1.3 3.0 6.1 6.3 7.3 5.3 3.1 9 10 Porporate equities .8 .9 1.5 .7 1.8 -.4 1.8 10 11 Credit market instruments.. .5 2.1 4.6 5.6 5.5 5.7 1.3 11 12 Mortgages. .2 .1 .5 .3 .5 .1 .3 12 13 Multifamily residential. .1 .2 .1 .2 .1 13 14 Commercial mortgages. .2 .3 .2 .4 . 1 .2 14 15 Corporate bonds .4 .6 .7 .4 .4 15 16 Bank loans n.e.c 1.3 4.0'. 2 4.5 3.4 3.9 16 17 Commercial paper 2.5 .7 -.2 1.7 -3.3 17 Open-end investment companies 1 Current surplus -1.1 -1.2 -1.5 -2.2 -2.2 -.9 -.6 -1.1 -.6 -1.0 -.3 -.7 1 2 Net acquisition of financial assets 2.2 2.5 1.5 3.6 2.6 1.7 .6 -1.8 -2.2 -2.9 -1.5 -.9 2 3 Demand deposits and currency .1 » .2 . 1 -.1 * .1 * .3 .6 * -.3 3 4 Corporate equities 1.3 1.0 1.9 2.5 1.7 1.2 .4 -1.8 -2.3 -3.7 -.9 -1.4 4 5 Credit market instruments .8 1.5 -.5 .9 .9 .5 * •n -.2 .2 -.6 .8 5 6 U.S. Government securities « .6 -.5 .2 -.5 .2 -.3 .1 .5 .7 .2 -.6 6 7 Corporate bonds .4 .4 4> .4 .2 .7 .6 .2 -.9 -1.5 -.3 -.4 7 8 Open-market paper .3 .5 * .3 1.2 -.4 -.3 -.3 .2 .9 -.5 1.8 8 9 Net share issues 3 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 -2.0 -1.2 -.2 9 Security brokers and dealers 1 Net acquisition of financial assets .5 .9 3.4 3.8 -3.1 .8 4.3 -3.5 -5.7 -1.3 .2 1 2 Demand deposits and currency * .1 .2 .5 -.1 -.3 * • * « 2 3 Corporate equities .3 .1 .4 -.2 .4 .1 .1 .4 , 7 .1 1.9 3 4 Credit market instruments -.2 .8 -.3 .6 .1 2.3 — 1.3 .2 .6 — .9 2.2 -1.6 4 5 U.S. Government securities -.3 .7 -.8 .8 * 1.7 — 1.6 .2 * -l'.2 1.2 -2.4 5 6 State and local obligations -.2 * * » -.2 .6 -.1 .2 .9 -1.1 6 7 Corporate bonds .3 , 1 .4 -.2 .4 1 .1 .4 .1 1.9 7 8 Security credit .4 * 3.2 2.8 -3.5 -i;3 3.9 -4.6 -5,5 -3.6 -.1 8 9 Net increase in liabilities .4 .8 3.2 3.5 -3.1 1.0 4.1 -3.5 -5.7 -1.2 .4 9 10 Security credit .4 .8 3.2 3.5 -3.0 1.0 4.1 -3.4 -5.7 -1.2 .5 10 11 From banks -.5 .6 .8 1.0 -1.0 1.9 3.9 -3.2 -4.6 -1.8 -.9 11 12 Customer credit balances .9 .2 2.3 2.4 -2.0 -1.0 .2 -.2 .6 1.5 12 1133 Taxes payable 4> « J » --..11 * * --..11 1133 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. For other notes see p. A-59.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.13 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1973 1974f Category 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Rest of the world 1 Net U.S. exports 6.9 5.3 5.2 2.5 1.9 3.6 -.2 -6.0 3.9 -.1 8.0 5.8 1 2 U.S. exports 39.2 43.4 46.2 50.6 55.5 62.9 65.5 72.4 100.4 92.1 108.6 134.9 2 3 U.S. imports 32.3 38.1 41.0 48.1 53.6 59.3 65.6 78.4 96.4 92.2 100.6 129.2 3 4 Transfer receipts from United States 2.8 2.8 3.0 2.9 2.9 3.2 3.6 3.8 3.9 3.6 4.1 3.7 4 5 Current account balance (4-1) i -4.1 -2.4 -2.2 .4 1.0 -.4 3.8 9.8 — 1 3.8 -3.9 -2.1 5 6 Net financial investment -3.8 -2.0 -1.2 .9 3.4 .8 13.6 11.6 2.1 11.6 -7.3 -2.2 6 7 Net acquisition of financial assets 1.9 3.3 7.6 8.5 10.3 5.9 22.7 19.7 17.4 28.2 6.7 34.4 7 8 Gold and SDK's 2 1.7 .6 1.2 1.2 -1.0 .8 1.3 .6 * « -.1 8 9 U.S. demand deposits and currency .4 .3 .6 .3 .2 .3 1.5 2.5 .3 ""AVI 3.6 9 10 Time deposits. '.6 .3 1.2 -.3 1.1 -1.7 .5 2.7 2.9 4.1 1.7 2.5 10 11 U, S. corporate equities -.4 -.3 .7 2.1 1.6 .7 .8 2.3 2.8 2.8 2.7 1.0 11 12 Credit market instruments 1 -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 -10.1 10.2 12 13 U.S. Government securities -2.4 2.1 -.5 -1.8 9.1 26.3 8.4 .3 11.0 -10.4 6.4 13 14 U.S. corporate bonds 3 -.1 .6 -.1 .2 .5 .7 .3 .1 .1 .3 -.1 1.4 14 15 Acceptances .4 .2 • .6 1.0 .5 -.2 -.1 .3 .3 .3 2.4 15 16 Security credit * * .1 .3 -.2 -.1 * 1 « -.1 * .1 16 17 Trade credit 1 .5 .4 .9 .8 1.4 1 !8 1.0 .2 1.8 1.7 17 18 Miscellaneous assets 3.4 1.6 3.4 8.0 -5.6 -6".8 3.4 7.6 9.2 5.9 15.5 18 U. S. bank liabilities 19 To foreign affiliates .1 2.9 .7 2.3 7.9 -6.9 -4.1 .9 1 1 .8 1.3 5.6 19 20 Direct investment in U.S .1 .1 .3 .3 .8 1.0 -.1 .4 2^5 1.9 3.2 5.3 20 21 Other -.5 .4 .7 .7 -.8 .3 -2.6 2.1 4.0 6.5 1.4 4.5 21 22 Net increase in liabilities 5.6 5.3 8.8 7.6 6.9 5.1 9.1 8.2 15.3 16.6 14.0 36.6 22 23 U.S. off. fgn. exch. & net IMF position.. .4 * 1.1 2.1 .3 -2.5 -1.7 -.2 -.2 -.5 .1 1.1 23 24 Foreign corporate shares .3 -.3 .1 2 .5 .1 * -.4 -.2 -.4 » .3 24 25 Credit market instruments 2.4 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 8.4 7.1 20.2 25 26 Corporate bonds .5 .7 1.2 1.1 1.0 .9 .9 1.0 1.0 .6 1.4 2.0 26 27 Bank loans n.e.c .5 -.2 -.3 — 5 -.2 -.3 1.6 2.9 2.8 4.3 1.3 9.4 27 28 Other loans 4 1.5 1.2 3.0 2.1 2.4 2.1 2.1 .8 3.9 3.5 4.3 8.8 28 29 Security debt * * .2 . 2 -.2 * * .1 -.2 -.3 * .1 29 30 Trade debt -.1 .3 .5 \A .8 1.0 .5 .5 1.9 .7 3.1 2.8 30 31 Miscellaneous liabilities 2.5 3.4 2.9 2.1 2.4 4.0 5.6 3.5 6.3 8.8 3.9 12.1 31 32 U.S. Government equity in IBRD, etc... .1 .1 .1 .2 .2 .3 .3 .3 .3 .4 .7 32 33 Foreign currency held in United States. -.4 -.1 .5 -.5 .5 1.4 3.6 4.8 6.6 3.0 4.7 33 34 U.S. direct investment abroad 3 3.3 3.0 2.7 1.1 2.2 3.6 3.8 1.5 3.6 3.8 3.5 1.6 34 35 Other -.4 • .2 .4 .4 -.4 .3 -1.9 -2.5 -2.0 -3.0 5.1 35 36 Discrepancy 5 -.3 -.4 -1.0 -.5 -2.3 -1.2 -9.8 -1.8 -2.2 -7.8 3.4 .2 36 NOTE.—Data revised for all periods; 1974 HI based on preliminary and incomplete information. Notes to Table 4 Households cooperatives. Federal National Mortgage Association (before 1969, sec- 1 Imputed saving associated with growth of government life insurance ondary market operations only), and mortgage pools issuing GNMAand retirement reserves. guaranteed securities. 2 From open-end investment companies. Banking 3 Excludes corporate equities. 1 Federal Reserve System plus those Treasury accounts included in 4 Policy loans, hypothecated deposits, and U.S. Govt, loans to nonprofit "Member Bank Reserves, Federal Bank Credit, and Related Items" organizations. (p. A-4). Excludes Exchange Stabilization Fund, which is in U.S. Govt, Business accounts. 1 Excludes imputed rental income from owner-occupied houses. 2 Includes F.R. holdings of foreign currencies. On Special Drawing 2 Change in work in process. Rights, see notes 5 and 7 to Governments table. SDR certificates as assets 3 After inventory valuation adjustment. of the Federal Reserve are on line 4 of this table. 4 Includes corporate farms. 3 Includes vault cash of nonmember banks. 5 Noncorporate net income is treated as payment in full to proprietors 4 IMF deposits are net in line 3. in the household sector. Gross saving consists of capital consumption 5 Combined statement for all commercial banks as reported on p. allowances plus, in farm business, corporate farm retained profits. A-17, their domestic afliliates as reported on p. A-27 for loans sold and 6 Shares in FICB's, Banks for Coops, and land banks. commercial paper issued, Edge Act corporations, U.S. agencies of 7 Loans from U.S. Govt., commercial loans from finance companies, foreign banks, and banks in U.S. possessions overseas. The figures and bankers' acceptances. consolidate commercial banks, but claims between commercial banks 8 Includes earnings retained in business; see note 5 above. and the other groups included in the sector are shown in both lending 9 Loans to commercial banks. and borrowing in the statement. 10 Foreign investment excludes amounts financed by bond issues 6 Net of F.R. float, shown separately in line 31. abroad, and bond issues outside the U.S. are excluded from financial 7 Net issues of bonds and equities, commercial paper of bank affiliates, sources of funds above. borrowings from nonbank lenders in security RP's, and bank loans to 11 Industrial pollution control revenue bonds. These are formally issued by foreign banking agencies. state and local government authorities, but they finance private invest- Nonbank finance ment and are secured in interest and principal by the industrial user of the 1 Excludes deposits at FHLB, which are included in Miscellaneous, funds. line 9. Governments 2 Used as a measure of net increase in liabilities to households. 1 Retirement funds are on p. A-59.11. 3 Includes retained capital gains dividends. 2 Unified budget basis for all years. Excludes sponsored agencies Rest of the world shown below. 1 The current balance is shown here from the viewpoint of the rest of 3 Govt, life insurance, employee retirement, and R.R. retirement the world and is thus opposite in sign from U.S. balance of payments programs. statements and U.S. national income accounts. Excludes capital trans- 4 1970-72 allocations of SDR's are excluded from these tables on fers. transactions. 2 Net purchases of gold and Special Drawing Rights from the U.S. only. 5 SDR certificates are held by the Federal Reserve System. Excludes acquisitions of gold from outside the U.S. Also excludes 1970-72 6 Loan participation certificates and securities issued by Export-Import allocations of SDR's. Bank, GNMA, CCC, Federal Housing Administration, Postal Service, 3 Net of U.S. issues in foreign markets to finance U.S. investment and TVA. Includes mortgage liabilities of Defense Dept. and Coast Guard abroad. and Farmers Home Administration insured notes. 4 Bankers' acceptances and loans from U.S. Government. 7 Home loan banks, land banks, intermediate credit banks, banks for 5 Errors and omissions in U.S. balance of payments statement. NOTE.—Quarterly figures and background informa- the Flow of Funds Section, Board of Governors of the tion concerning these tables are available on request to Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

>s 5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1973 (Amounts outstanding in billions of dollars) i (A) AU sectors Financial sectors o Private domestic nonfinancial sectors Sector Households Business go a v n e S d rn t a l m o te c e a n l t s Total o w R f o e t r h s ld t e Gov U er . n S m . ent Total s F p e c o d r n e e s d r o a i r t l e ly d M au o t n h e o t r a it r y y Com ba m n e ks rc ial n P f o in r n i a v b n a a c t n e e k TotaP Discrepancies agencies a Transaction category 2 1 T T o o t t a a l l l i a a s b s i e l t i s ti es 2302.3 661.1 528.0 925 "l 202.4 2928.8 1788.6 200.8 194.2 102 408.6 2041. 1926.5 79 77.5 105.5 105.7 755.2 714.5 1102. 0 . 1028. 5274.2 4317.9 26.2 o w 3 Gold 47.3 11. 11.6 * 61.1. m 4 Official foreign exchange.. * .6 5 IMF position 7.4 9.1 9.1 9.1 7.4 -1.7 6 Treasury currency 7 8 De P m ri a v n a d te d d e o p m . e a s n t d ic currency 1 1 7 7 0 0 . . 2 2 5 5 5 5 . . 4 4 2 24 4 0 0 . . 3 3 10.6 1 1 9 9 . . 4 4 2 2 9 7 1 8 2 5 . . . 5 7 1 6 6 2 1 5 . . . 9 8 0 1 1 . . 0 0 2 2 1 5 8 2 9 3 . . . 6 8 0 2 2 9 1 7 8 2 5 . . . 5 7 1 1 1 5 5 . . 4 4 9 U.S. Government 10.6 10.6 .3 10.6 10.6 10 Foreign 1 1 1 1 2 3 Tim A A t e t c s a o a n m v d in m g s e s a r v c i i n i n a g s l s ti b tu a a t c n i c o k o n s u s . n . . . . t s 6 3 2 4 3 8 7 5 7 . . . 8 6 8 2 2 1 1 . . 5 5 3 3 7 5 4 0 3 7 1 . . . 7 8 5 1 1 2 2 . . 1 ! 1 . . . 8 4 2 3 3 7 4 6 1 8 7 5 . . . 7 2 9 3 3 6 6 7 7 , , . . . 2 4 8 3 3 4 4 8 8 . . 3 3 7 4 6 1 8 7 5. . . 9 2 7 3 3 7 4 6 1 8 7 5. . . 9 2 7 1 1 1 2 1 3 1 1 4 5 L P i e fe n s i i n o s n u f r u an nd ce r e re s s e e rv rv e e s s 3 1 0 5 7 0 . . 8 3 3 1 7 5 0 0 . . 8 3 3 7 5 . . 6 4 "57'A 2 1 5 7 4 7 2 2 . . . 4 1 7 4.4 37.8 52.8 19.4 2 1 7 4 2 2 . . 3 1 5 0 5 7 7 0 . . . 8 3 1 3 1 5 0 5 7 7 0 . . . 8 1 3 1 1 16 4 5 16 Interbank claims 17 Corporate shares 2. 744.4 744.4 ... 24.8 198.7 46.5 .7 , 198.0 46.5 968.0 46.5 17 2 2 2 2 2 2 2 1 1 0 1 2 3 4 5 6 9 8 Ot H C C O S B O U h t e a o o o t . t a h S h r n n r m t e e p e . k s c e r r . u G r & l e m m o & l m o o d l a o e a o v o i f n t r r n c g t r s , t t s m a n g c g s l . n a r a k e g e . g b g e t c o d . e o e . u i v c s i t s n r n t i d , t s i s e o t r s b l 3 ig . . . 2 1 5 2 5 5 1 0 5 0 8 6 6 5 0 . . . . . . . 7 5 0 8 4 3 1 3 6 1 2 2 2 7 3 8 4 4 6 9 4 0 . . . . . . 7 5 1 0 8 5 '3 3 7 3 4 5 1 4 ^ . . . . 0 4 9 5 1 1 1 8 9 7 3 . . " 3 1 5 5 2 3 3 6 1 4 6 1 8 8 7 2 6 1 . . . . . . . . 8 9 8 0 3 1 5 7 1 . 2 2 2 3 1 1 5 .. 0 9 4 0 9 8 8 0 7 7 2 0 5 4 0 7 . . . . . . . . 5 9 0 2 5 0 5 4 5 6 2 4 4 1 . . . . 3 4 8 5 6 3 1 1 6 8 8 3 ^ . . . 5 9 0 6 6 5 5 6 2 * 3 3 5 5 4 3 . . 4 1 1 2 3 2 2 2 1 1 6 8 1 0 5 7 2 4 3 4 7 6 4 5 5 4 8 6 2 . . . . . . . . . 7 5 9 9 6 3 9 6 1 2 " " 5 6 3 0 3 4 6 1 8 9 7 9 . . . . . . . 7 5 5 9 9 6 1 24 9 0 6 6 8 8 . . 9 80.5 2 6 5 8 9 6 8 5 5 6 6 1 8 1 5 8 5 3 . . . . . . . . . 2 7 2 8 9 7 0 1 5 . . , . . " 2 1 " 4 8 3 1 . . . . 1 0 8 7 • 2 8 • 1 1 5 5 3 6 7 3 5 9 6 2 7 7 4 6 0 8 . . . . . . . . 0 4 3 4 6 4 7 0 • 1 • 4 3 1 4 4 1 5 6 . . . ' . 7 8 8 5 4 2 3 2 2 2 4 1 1 1 1 5 9 4 6 2 8 8 9 3 5 0 9 4 7 0 2 0 9 . . . . . . . . . 3 9 3 0 4 5 0 6 1 2 3 2 2 2 4 1 1 1 1 5 9 4 6 8 8 2 9 3 5 0 9 4 7 0 0 2 9 . . . . . . . . . 3 9 3 4 5 0 0 6 1 2 2 2 2 2 2 1 1 2 8 0 1 3 4 5 9 2 2 2 7 8 9 Se T T c o o u r b o ity t r h o c e k r r e e s r d s it a nd dealers. . 4 4 .. . . . 8 8 1 1 3 3 . . 1 1 4 4 . . 8 8 ... 1 1 3 3 . . 1 1 2 1 1 4 0 3 . . . 2 8 4 1 1 6 6 . . 0 0 1 1 4 0 5 . . . 3 8 1 . . . ' 9 9 . ! 1 i 1 1 6 6 . . 0 0 2 1 1 9 3 6 . . . 3 4 0 2 1 1 6 3. . 4 0 2 2 2 8 7 9 3 3 3 0 2 1 T T M a r i a s x c d e e e s l l p c a a r n e y e d a o i b t u l s e < 32.8 6.4 2 1 4 35 0 . . 1 ! 21 1 1 2 5 7 2 1 4 6 3 0 8 . . . 7 9 6 2 1 2 2 5 8 4 . . . 6 3 1 3 8 5 . . 3 1 11 9 5 . . 0 8 3. . 5 3 67, "le 3 si . s 0 2.8 8. 2.7 32.2 69.3 32 'si 1 '. . 2 2 7 6 1 6 5 0 . . . 9 6 0 2 3 4 0 1 0 5 8 . . . 9 5 5 -19 2. . 9 1 3 3 0 1 For notes see facing page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, December 31, 1973—Continued (Amounts outstanding in billions of dollars) (B) Private nonbank financial institution State and Real Savings Mutual Life Private local govt, Other estate Open-end Security SSeeccttoorr Total and loan savings Credit insurance pension retirement insurance Finance investment investment brokers assDS. banks unions COS. funds funds COS. COS. trusts COS. and dealers TTrraannssaaccttiioonn ccaatteeggoorryy A L A L A L A L A L A L A L A L A L A L A L A L 1 Tn^al oesoi-c 1102 0 272 4 106.6 24.6 . . .. 244.6 133.3 81.6 68.8 88.4 17.0 46.5 18.4 1 22222 TTTTToooootttttaaaaalllllllllliiiiiaaaaabbbbbmmmmmtttttiiiiieeeeesssss 11002288..88 255 5 99.0 24.6 231.5 133.3 81.6 46.1 80.4 14.4 46.5 16.1 2 33333 DDDDDeeeeemmmmmaaaaannnnnddddd dddddeeeeepppppooooosssssiiiiitttttsssss aaaaannnnnddddd cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy 1188 99 3 4 1 2 1.0 2.1 2.3 . . . 1.0 1.5 3.5 1.2 1.1 , ,3 44444 TTTTTiiiiimmmmmeeeee aaaaannnnnddddd sssssaaaaavvvvviiiiinnnnngggggsssss aaaaaccccccccccooooouuuuunnnnntttttsssss 11..22 334488..22 227.3 ..88 9966..33 ..44 2244..66 4 55555 AAAAAttttt cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss gg 5 ..44 334488..22 227.3 96 3 ..44 2244..66 6 114422 77 142.7 7 S 'Poncir\n fiinH rf^cf^rvf^K 272 4 57.5 133.3 . ... 81.6 8 Q f^rvmrtrnti^ cViarAcZ 119988..00 4466..55 4.0 25.9 89.2 18.6 19.6 3388..33 4466..55 2.4 9 111000 OOOttthhheeerrr cccrrreeedddiiittt mmmkkkttt... iiinnnssstttrrr 883366..44 111166..44 257.5 22.0 98.2 ...... 23.2 204.6 36.8 62.1 41.1 84.9 80.1 15.1 14.4 77..00 5.8 10 111111 UUU...SSS... GGGooovvvttt,,, ssseeecccuuurrriiitttiiieeesss 333............ 5522 44 22 8 7.1 2 6 4.4 4.3 . .. . 4.6 3.4 11..22 2.0 11 111222 SSStttaaattteee &&& lllooocccaaalll gggooovvvttt... ssseeeeeesss......... 37 3 9 3.4 1.4 30.4 1.1 12 111 CCCooorrrnnn aaannnddd fffeeennn bbbooonnndddsss 111199998888....7777 33335555....8888 13.1 . 92.5 29.8 49.4 7.2 33.9 1.9 4.2 2.6 13 1 A T-f/^vr^^ Tvynskn^c 222277774444....6666 4444....7777 118888..11 44..77 44 2 11..00 22 0 2 7 12.5 4.1 14 1 ^ OtVi/'r mnrfoaofa 111155550000....0000 1111....5555 4444 11 29 0 59 2 6.7 .. . .2 1111..00 11..55 15 1ft Cr»n«nm«»r r'r<»fltt 66667777 4444 2 6 1 7 19.6 43.4 16 IT Tlnnlr Irtnrtc n r> 29 6 2 I 20.5 7.0 17 18 Other loans 555666...000 444444...888 15.1 2 1 23.2 2299..00 2255..77 4.0 1.6 ,. , 18 O O 1Q Q(>r>iirit\/ 999...111 111666...000 99..11 1166..00 1199 H "^A Tr» V*roV*»r« Jinrt Hf'alprs 111666 000 1166..00 2200 O 21 Other 9 1 9.1 21 CD m Tav^c •nnvnW** 1 8 2 8 3 .4 .2 22 ;d O'X Trade credit 6 5 23 3322..77 8844..77 1111..55 55..88 22..55 22..66 1122..00 3300..55 4.9 45.8 1.9 24 I—» § 1 Excess of total assets over liabilities consists of gold (row 3) and corporate shares (row 17) other budget (CCC, Export-Import Bank, GNMA, TVA, FHA) and by sponsored credit agencies in • than investment co. shares less total discrepancies (row 1), which are not included in sector assets. financial sectors, and loan participation certificates. Postal savings system deposits are included 2 Assets shown at market value; nonbank finance liability is redemption value of shares of open- in line 32. -n end investment companies. No specific liability is attributed to issuers of stocks other than open- 4 Business asset is corporate only. Noncorporate trade credit is deducted in liability total to con- 1— end investment companies for amounts outstanding. form to quarterly flow tables. O 3 Includes savings bonds, other nonmarketable debt held by the public, issues by agencies in the S o TI -n C z D C/) CJI vo Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.16 FLOW OF FUNDS • OCTOBER 1974 6. SUMMARY OF CREDIT MARKET DEBT OWED BY NONFINANCIAL SECTORS' (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 1037.6 1102.8 1181.6 1276.9 1363.9 1456.7 1592.3 1751.4 1930.4 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 2 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 1075.3 1155.3 1264.9 1406.8 1576.0 5 6 Debt capital instruments 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 Home mortgages 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 Other residential 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 Commercial 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 Farm 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 Consumer credit 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 1406.9 1576.0 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 Households 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 Farm 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 Corporate 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 3 1 Total credit market debt claims against nonfinancial sectors 842.6 900.6 967.5 1037.6 1102.8 1181.6 1276.9 1363.9 1456.7 1592.3 1751.4 1930.4 1 Held by public agencies and foreign— 2 Total 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 uy 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 Monetary authorities 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 Foreign 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 Agency debt not in line 1 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 Total 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 U.S. Govt, securities 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 Corporate and foreign bonds 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 Residential mortgages 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 Less—FHLB advances 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 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.9 1066.6 1177.6 1331.0 1489.8 19 20 Commercial banking 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 Savings institutions 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 Other finance 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 Sources of funds 582.3 632.6 689.5 752.3 796.9 860.3 935.5 991.9 1066.6 1177.6 1331.0 1489.8 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 Other sources 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 Foreign funds 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 Treasury balances 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 Insurance and pension reserves 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 Other, net 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 Credit market claims 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 U.S. Govt, securities 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 State and local obligations 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 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 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 Other 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 Deposits and currency 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 Time and savings accounts 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 Large negotiable CD's 5.8 9.2 11.4 15.0 14.81 19.1 22.6 8.9 23.9 31.6 40.3 58.9 40 41 Other at commercial banks 89.0 99.2 110.2 126.2 138.31 156.6 174.1 177.6 201.7 234.7 265.3 294.8 41 42 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 42 43 Money 144. C 149. C 156.5i 164.3 168.3i 181.1 195.6i 203.3 213.8 226.6 243.3 255.7 43 44 Demand deposits 113.2I 115.6 121.4^ 127.1 129.2: 139.8 151.9• 156.7 163.8 173.1 185.4 193.9 44 45 Currency 30.8 i 33.4 35.1 37.2 39.2 t 41.3 43. ' 46.6 50.0 53.4 57.9 61.8 45 46 Total of credit market instruments, deposits, and currency 575. e1 618.2t 663.2I 712.2\ 752.1r 808.1 876.8 ; 926.2 990.4 1081.1 1196.6 1323.7 46 4477 Public holdings as per cent of total 10.1r lo.i r 10.8t lO.S• 11.2\ 11.4 11.5; 11.8 13.0 14.5 14.3 14.7 47 48 Private fin. intermediation (in per cent) . 76.2\ 77. i) 78.i \ 80.1i 79.S> 80.8 81.2 : 80.4 81.7 83.9 85.8 86.8 48 49 Total foreign funds 24.11 26. J\ 30.:i 30.S> 33.() 37. C 39. "^3 47.8 50.2 73.6 87.5 94.5 49 1 Excludes corporate equities both as assets and as liabilities. 2 Includes U.S. Govt, liability for home mortgages not in U.S. Govt, securities on p. A-59.17. 3 For notes see p. A-59.2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.17 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES—Continued (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 Demand deposits and currency 1 Total assets 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.3 298.5 1 2 Money supply 158.5 163.8 172.2 180.5 184.7 198.6 214.6 222.3 234.0 248.3 268.3 285.7 2 3 Domestic sectors 155.2 160.3 168.0 176.1 180.0 193.5 208.9 216.3 227.9 241.9 260.3 275.1 3 4 Households 78.4 81.7 86.5 94.2 98.1 109.4 121.7 123.3 134.5 145.5 157.3 170.2 4 5 Nonfinancial busmess 46.4 46.5 47.0 47.4 47.7 49.3 51.2 53.8 54.8 55.5 55.6 55.4 5 6 Farm 5.9 5.7 5.9 6.0 6.0 6.1 6.3 6.4 6.5 6.6 6.9 6.9 6 7 Nonfarm noncorporate 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 7 8 Corporate 28.0 28.3 28.6 28.9 29.2 30.7 32.4 34.9 35.8 36.3 36.2 35.9 8 9 State and local governments 9.4 10.9 12.5 12.1 13.0 14.1 13.9 15.3 12.5 13.5 15.0 14.7 9 10 Financial sectors 11.2 11.2 11.5 11.8 11.6 12.4 13.3 13.0 14.0 15.3 17.0 19.4 10 11 Mail float 9.9 9.9 10.4 10.5 9.5 8.3 8.8 10.9 12.0 12.1 15.3 15.4 11 12 Rest of the world 3.2 3.5 4.2 4.4 4.8 5.1 5.7 6.0 6.2 6.5 8.0 10.6 12 13 U.S. Government 8.1 7.8 7.9 7.0 6.6 7.7 6.5 7.0 9.5 12.7 13.1 12.7 13 14 Total banking system liability 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.3 298.5 14 15 Monetary authorities 32.1 34.9 36.8 38.8 41.2 44.2 45.7 48.9 52.0 56.4 60.4 65.0 15 16 Commercial banking 134.5 136.7 143.4 148.6 150.1 162.2 175.4 180.4 191.6 204.6 220.9 233.5 16 Time deposits and savings accounts 1 Total held 226.5 256.1 286.5 319.7 338.8 379.6 412.9 411.5 466.5 548.4 636.9 715.9 1 2 Commercial banking liability 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 367.7 2 3 Households 79.9 89.4 101.1 115.9 127.9 146.0 163.4 161.5 189.0 218.8 248.3 287.8 3 4 Corporate business 8.4 10.8 10.8 13.1 11.7 13.8 14.2 11.8 13.5 17.1 20.2 21.5 4 5 State and local governments 6.5 8.1 9.8 12.2 13.5 15.9 19.1 13.2 23.2 30.4 37.2 44.4 5 6 U.S. Government .3 .3 .3 .3 .2 .3 .4 .2 .5 .5 .6 .4 6 7 Mutual savings banks .2 .1 .2 .2 .2 .2 .2 . 1 .3 .5 .6 .8 7 8 Foreign 3.4 4.3 5.4 6.0 6.3 7.6 7.3 8.4 6.7 7.2 9.9 12.8 8 9 Savings institutions liability 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.0 320.1 348.2 9 10 Mutual savings banks 41.3 44.6 48.8 52.4 55.0 60.1 64.5 67.1 71.6 81.4 91.6 96.3 10 11 Credit unions 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 24.6 11 12 Savings and loan associations 80.2 91.3 101.9 110.4 114.0 124.5 131.6 135.5 146.4 174.2 206.8 227.3 12 13 Held by: Households 79.9 90.9 101.4 110.0 113.9 124.2 131.5 135.5 146.3 174.0 206.3 226.9 13 14 Credit unions .4 .4 .5 .4 .1 .3 * .1 .2 .4 .4 14 U.S. Government securities i 1 Total outstanding 258.4 263.9 270.5 274.2 282.9 295.4 312.1 317.6 338.8 369.1 392.7 422.1 1 2 Included in public debt 246.9 251.0 256.4 257.7 260.0 268.9 279.2 278.0 290.8 316.9 330.8 338.5 2 3 Household 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 3 4 Direct excluding savings bonds 200.0 202.9 207.4 208.1 209.8 217.8 227.7 226.8 239.4 263.0 273.7 278.7 4 5 Short-term marketable 99.8 101.1 105.8 108.8 110.2 118.9 119.4 128.4 133.8 130.4 143.5 153.1 5 6 Other direct 100.2 101.9 101.6 99.3 99.5 98.9 108.3 98.4 105.6 132.7 130.1 125.6 6 7 Other budget issues 1.5 1.4 2.2 2.6 4.0 8.2 11.3 9.1 9.0 9.0 12.5 14.6 7 8 Sponsored agency issues 2 10.0 11.5 11.9 13.8 18.9 18.4 21.6 30.6 38.9 43.2 49.4 68.9 8 9 Total holdings, by sector 258.4 263.9 270.5 274.2 282.9 295.4 312.1 317.6 338.8 369.1 392.7 422.1 9 10 U.S. Government (agency sec.) * * * 1.4 1.3 1.4 .1 • * • * 10 11 Sponsored credit agencies "i.k 2.2 1.8 1.9 2.9 2.9 2.7 2.3 4.2 3.1 2.7 4.0 11 12 Federal Reserve System 30.8 33.6 37.0 40.8 44.3 49.1 52.9 57.2 62.1 70.8 71.2 80.5 12 13 Short-term marketable 20.7 25.6 28.2 31.9 36.5 39.2 32.6 37.6 38.5 39.5 41.2 50.6 13 14 Other direct 10.1 8.0 8.8 8.9 7.8 9.9 20.4 19.5 23.7 30.7 28.7 27.9 14 15 Agency issues .6 1.3 2.0 15 16 Foreign 12.3 12.9 13.4 13.2 10.8 12.9 12.4 10.6 19.7 46.0 54.4 54.8 16 17 Short-term marketable 9.2 8.7 8.5 7.6 6.7 7.6 5.9 3.7 11.5 25.4 26.7 21.0 17 18 Other 3.1 4.2 4.9 5.6 4.1 5.3 6.5 7.0 8.2 20.6 27.7 33.8 18 19 Private domestic nonfinancial 104.9 109.4 110.4 113.3 121.7 120.3 128.3 145.3 136.3 122.3 123.9 141.7 19 20 Household 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 20 21 Direct excluding savings bonds 53.1 55.6 55.3 56.3 59.9 57.2 61.6 72.3 60.9 49.6 47.9 52.6 21 22 Short-term marketable 32.3 33.9 31.3 33.6 34.7 33.4 39.2 51.5 38.5 28.7 29.9 35.5 22 23 Other direct 20.8 21.7 24.0 22.7 25.1 23.9 22.5 20.8 22.4 20.9 18.0 17.0 23 24 Agency issues 5.0 5.7 6.0 6.8 10.0 9.7 12.6 19.8 21.6 16.6 15.6 26.2 24 25 Loan participations .2 .6 1.5 2.2 2.6 2.1 2.4 2.2 3.3 3.1 25 26 Commercial banking 71.4 68.5 68.8 66.0 62.9 72.3 75.5 65.5 75.9 83.6 90.0 88.8 26 27 Short-term marketable 27.7 24.0 28.2 26.7 21.8 27.3 29.1 24.9 30.3 24.9 30.3 28.5 27 28 Other direct 39.4 39.8 35.4 33.5 35.0 35.9 36.2 30.7 32.2 40.7 37.7 30.7 28 29 Agency issues 4.4 4.7 5.2 ; 5.8 6.1 9.0 10.2 9.9 13.4 17.9 22.0 29.6 29 30 Nonbank finance 37.1 37.3 39.1 38.9 39.1 36.8 38.8 36.6 40.4 43.3 50.4 52.4 30 31 Short-term marketable 8.1 7.0 7.8 1 7.4 8.5 8.6 10.0 8.7 10.9 8.8 12.8 13.4 31 32 Other direct 26.8 27.8 28.5 i 28.3 26.6 23.8 22.7 20.1 19.0 19.6 17.9 16.3 32 33 Agency issues 2.2 2.4 2.8 1 3.3 3.9 4.4 6.1 7.8 10.5 14.9 19.7 22.7 33 34 Memo: Held by private domestic nonfinancial, banks. and nonbank finance 213. f5 215.1 218.3 1 218.2 223.6 229.3 242.6 247.4 252.7 249.2 264.4 282.8 34 1 Where not shown separately, loan participations are included with sector in flow of funds accounts. They are included in credit market debt agency issues. of financial institutions. 2 These issues are outside the budget and outside the U.S. Government Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.18 FLOW OF FUNDS • OCTOBER 1974 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES-Continued (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 State and local government securities 1 Totalliabilities 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.4 162.0 176.3 190.0 1 2 Short-term 3.7 4.1 4.9 5.5 6.2 8.0 8.1 10.9 13.3 15.7 15.1 14.8 2 3 Long-term 77.5 82.8 88.0 94.8 99.8 105.7 115.1 122.2 131.1 146.2 161.2 175.2 3 4 Total assets 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.4 162.0 176.3 190.0 4 5 Households 31.0 32.0 34.6 36.4 40.0 37.7 37.0 46.1 45.4 45.2 46.2 50.5 5 6 Corporate business 2.7 3.8 3.7 4.6 3.6 3.3 3.8 2.8 2.2 3.2 4.2 4.0 6 7 State and local governments, general funds 2.6 2.3 2.2 2.2 2.1 2.1 2.2 2.2 2.4 2.1 2.3 2.5 7 8 Commercial banking 26.2 30.1 33.7 38.9 41.2 50.3 58.9 59.5 70.2 82.8 90.0 95.7 8 9 Mutual savings banks .5 .4 .4 .3 .3 .2 .2 .2 .2 .4 .9 .9 9 10 Life insurance companies 4.0 3.9 3.8 3.5 3.1 3.0 3.2 3.2 3.3 3.4 3.4 3.4 10 11 State and local governments, retirement funds... 3.8 3.3 2.9 2.6 2.5 2.4 2.4 2.3 2.0 2.1 2.0 1.4 11 12 Other insurance companies 9.9 10.6 11.0 11.3 12.6 14.1 15.1 16.3 17.8 21.7 26.5 30.4 12 13 Brokers and dealers .5 .5 .7 .5 .5 .5 .5 .4 .9 1.0 .9 1.1 13 Corporate and foreign bonds 1 Total liabilities 102.4 109.0 116.6 125.7 137.2 153.4 168.3 181.7 206.1 231.4 251.8 264.0 1 2 Corporate business 84.5 88.4 92.4 97.8 108.0 122.7 135.6 147.6 167.3 186.1 198.3 207.5 2 3 Commercial banks .2 .8 1.6 1.7 2.0 2.2 2.0 2.1 3.0 4.1 4.1 3 4 Finance companies "i6."7 12.2 14.3 16.1 16.9 17.9 18.8 20.3 22.9 26.7 32.1 33.9 4 5 REITS .1 .6 1.0 1.4 1.9 5 6 Rest of the world '"7.'2 "'8.2 '"9.'2 "io-'i "io.'s "io.'s "ii.'7 11.7 13.2 14.7 15.9 16.6 6 7 Total assets 102.4 109.0 116.6 125.7 137.2 153.4 168.3 181.7 206.1 231.4 251.8 264.0 7 8 Households 11.2 11.2 11.9 13.5 15.2 19.0 23.7 30.3 41.0 50.5 55.6 56.8 8 9 Commercial banking .8 .8 .9 .8 .9 1.7 2.0 1.9 2.7 4.0 5.7 6.2 9 10 Mutual savings banks 3.5 3.2 3.1 2.9 3.2 5.3 6.6 6.9 8.1 12.0 14.2 13.1 10 11 Life insurance companies 53.2 56.0 58.3 61.1 63.5 67.3 71.2 72.7 74.1 79.6 86.6 92.5 11 12 Private pension funds 18.1 19.6 21.2 22.7 25.2 26.4 27.0 27.6 29.7 29.0 28.2 29.8 12 13 State and local governments, retirement funds... 10.7 12.8 14.9 17.2 20.2 23.9 26.6 30.2 33.9 38.1 43.4 49.4 13 14 Other insurance companies 2.1 2.0 2.4 3.0 3.6 4.3 5.5 6.3 8.6 8.9 8.1 7.2 14 15 Open-end investment companies 1.6 1.8 2.1 2.6 2.9 3.0 3.4 3.6 4.3 4.9 5.1 4.2 15 16 Brokers and dealers .6 .8 .9 1.2 1.3 1.7 1.5 1.8 1.9 2.1 2.2 2.6 16 17 Rest of the world .7 .7 .9 .7 1.3 .9 .9 .4 1.7 2.3 2.6 2.3 17 Corporate equities 1 Total at market value 505.7 597.0 662.1 749.0 682.7 869.5 1027.6 907.6 900.6 1046.1 1223.1 968.0 1 2 Open-end investment companies 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 56.7 59.8 46.5 2 3 Other sectors 484.4 571.8 633.0 713.7 647.8 824.8 975.0 859.4 852.9 989.5 1163.2 921.4 3 4 Market value of holdings 505.7 597.0 662.1 749.0 682.7 869.5 1027.6 907.6 900.6 1046.1 1223.1 968.0 4 5 Households 437.9 514.8 566.5 637.5 576.9 733.7 865.1 750.0 733.6 833.7 959.1 744.4 5 6 Commercial banking .1 .1 . I .2 .2 .3 .4 .4 .5 .5 .6 .7 6 7 Mutual savings banks 1.0 1.2 1.3 1.4 1.5 1.7 1.9 2.2 2.5 3.0 3.6 4.0 7 8 Life insurance companies 6.3 7.1 7.9 9.1 8.8 10.9 13.2 13.7 15.4 20.6 26.8 25.9 8 9 Private pension funds 21.9 27.7 33.5 40.7 39.5 51.1 61.4 61.6 67.2 88.6 114.9 89.2 9 10 State and local governments, retirement funds... .8 1.0 1.3 1.6 2.1 2.8 4.1 5.9 8.0 11.2 14.7 18.6 10 11 Other insurance companies 8.6 10.0 11.4 12.0 11.0 13.0 14.6 13.3 13.2 16.6 21.8 19.6 11 12 Open-end investment companies 18.3 22.1 25.6 30.9 28.9 39.2 46.1 40.9 39.7 48.6 51.7 38.3 12 13 Brokers and dealers .3 .6 .7 1.0 1.1 1.5 1.3 1.6 1.7 1.9 2.0 2.4 13 14 Rest of the world 10.3 12.5 13.8 14.6 12.6 15.5 19.6 18.1 18.7 21.4 27.8 24.8 14 Total mortgages 1 Total mortgage debt 248.6 274.3 300.1 325.8 347.4 370.2 397.5 425.3 451.7 499.9 568.7 639.6 1 2 U.S. Government 1.7 1.8 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.4 1.3 1.3 2 3 Savings and loan associations 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.0 6.2 4.7 3 4 REITS .2 .4 .5 .7 1.2 1.5 4 5 Private nonfinancial sectors '244;9 •269.'9 '296!i •32i;7 '344;4 '366!3 393.2 420.9 446.6 492.8 560.0 632.2 5 6 Total assets 248.6 274.3 300.1 325.8 347.4 370.2 397.5 425.3 451.7 499.9 568.7 639.6 6 7 Households 34.5 34.8 35.1 34.3 35.7 36.6 38.1 39.2 39.3 39.5 37.6 38.1 7 8 U.S. Government 6.3 5.8 5.7 5.6 6.4 7.3 8.4 9.1 9.5 9.5 9.3 8.7 8 9 State and local governments, general funds 2.1 2.2 2.2 2.1 2.1 2.2 2.2 2.2 2.1 2.2 2.2 2.2 9 10 Sponsored credit agencies 5.9 5.4 5.7 6.8 9.4 11.1 13.3 17.8 23.6 29.9 36.6 47.0 10 11 Commercial banking 34.5 39.4 44.0 49.7 54.4 59.0 65.7 70.7 73.3 82.5 99.3 119.1 11 12 Savings and loan associations 78.8 90.9 101.3 110.3 114.4 121.8 130.8 140.2 150.3 174.3 206.2 232.1 12 13 Mutual savings banks 32.3 36.2 i 40.6 44.6 47.3 50.5 53.5 56.1 57.9 62.0 67.6 73.2 13 14 Credit unions .5 .3i .5 .6 .6 .7 .7 .7 .8 .8 ' 1.0 1.0 14 15 Life insurance companies 46.9 50.5 ; 55.2 60.0 64.6 67.5 70.0 72.0 74.4 75.5 77.3 81.2 15 16 Private pension funds 1.9 2.2 : 2.7 3.3 3.9 4.1 4.1 4.2 4.3 3.7 3.0 2.7 16 17 State and local governments, retirement funds... 2.2 2.6 1 3.1 3.7 4.5 5.0 5.4 6.0 6.8 7.1 6.8 6.7 17 18 Other insurance companies . 1 1 .1 .1 .2 .2 .2 .2 .2 .2 .2 18 19 Finance companies 2.7 3!* i 3.9 4.5 3.9 4.3 4.9 5.7 5.9 7.0 11.1 12.5 19 20 REITS .2 1.1 3.2 5.8 10.6 15.1 20 Bank loans not elsewhere classified 1 Total liabilities 72.2 1 80.1[ 89. SI 106.2I 115.5> 123.4\ 139.1. 157.2 162.9 ' 175.2 203.8 1 255.9 1 2 Nonfinancial business 52.1 57.1[ 62.8; 75.c) 85.f ; 93.4^ 104.f ; 119.1 124.9 • 130.8 146.4. 180.5 2 3 Households 8.1 S.i 1 10.31 11.y' 12.C) 13.9» 16^. 41 7.31 18.21 20.1 22.9 ' 24.7 3 4 Rest of the world 4.1 4.' f 6.1' 7.2! 7.1 6.8! 6.3 1 6.1 5.1 ' 7.3 10.21 13.0 4 5 Financial sectors 7.8 ! 9.t ) lO.C1 12^. 41 1.3I 9.3I 11.9> 14;. 61 4.1 17.1 24.1 37.6 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.19 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) j Transaction category, or sector 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Credit market debt claims i 1 Total credit market liabilities 881.4 947.1 1020.1 1100.3 1173.5 1251.3 1358.5 1473.5 1574.2 1723.5 1909.4 2139.6 1 Owed by: 2 Nonfinancial sectors 842.6 900.6 967.5 1037.6 1102.8 1181.6 1276.9 1363.9 1456.7 1592.3 1751.4 1930.4 2 3 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 3 4 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 4 5 Private domestic 564.5 615.4 671.0 736.5 797.1 860.0 939.4 1027.8 1104.7 1209.1 1345.8 1507.5 5 6 Households 251.9 276.9 304.9 333.2 354.7 374.0 404.3 435.9 459.3 498.8 562.0 634.8 6 7 Farm business 23.9 26.4 29.0 32.3 35.8 39.2 41.9 45.1 48.3 52.0 56.9 64.5 7 8 Nonfarm noncorp. business 30.6 35.1 40.4 46.2 51.6 56.5 62.1 69.5 74.7 83.4 93.8 103.1 8 9 Corporate nonfin. business 175.0 187.8 201.3 221.8 245.7 272.9 303.9 339.5 373.2 407.8 451.8 511.6 9 10 State and local govts 83.2 89.1 95.4 103.1 109.3 117.3 127.2 137.9 149.2 167.0 181.2 193.5 10 11 Financial sectors 38.9 46.5 52.6 62.7 70.7 69.6 81.6 109.6 117.5 131.2 158.0 209.1 11 12 Sponsored credit agencies 10.1 11.5 12.1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 68.9 12 1 1 3 4 C Ba o n m k m a e ff r i c li i a a t l e b s anks .2 1.4 ... 3 .. .3 . ... 3 .. .2 . ... 3 .. .3 . 4.6 4 6 . . 2 0 2 2. . 8 3 2 4. . 7 0 2 7 . . 6 6 1 4 0 . . 9 9 1 1 4 3 15 Foreign banking agencies • . 1 .3 .4 2.1 2.9 8.0 15 16 Savings and loan assns 5.6 7.6 7.8 8.7 8.7 7.0 8.2 12.3 14.1 14.1 16.0 22.0 16 17 Finance companies 23.1 27.2 31.2 36.5 39.6 40.8 46.5 55.3 56.9 61.1 70.7 80.1 17 18 REITS .3 .8 2.1 4.1 8.8 14.4 18 19 Total credit market liabilities 881.4 947.1 1020.1 1100.3 1173.5 1251.3 1358.5 1473.5 1574.2 1723.5 1909.4 2139.6 19 Held by: 20 Private domestic nonfin. sectors 209.3 218.2 226.6 235.1 252.4 255.7 276.2 320.1 317.5 314.5 328.1 366.5 20 21 Households 149.6 154.5 160.9 166.0 183.0 184.9 196.7 231.1 230.0 221.2 227.6 256.4 21 22 Nonfarm noncorp. business 5.9 6.3 6.6 7.1 7.6 8.0 8.5 9.1 9.7 10.4 11.4 12.7 22 23 Corporate business 33.8 36.8 38.6 38.9 36.8 38.2 44.1 46.6 44.3 51.3 53.9 61.8 23 24 State and local governments 19.9 20.6 20.4 23.1 24.9 24.6 26.9 33.3 33.6 31.6 35.2 35.7 24 25 U.S. Governinent 30.8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.2 62.2 65.2 25 26 Financial institutions 627.0 681.7 742.7 811.6 864.8 932.9 1015.0 1084.5 1174.3 1297.3 1458.0 1646.3 26 27 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 27 28 Federal Reserve System 30.9 33.8 37.2 41.0 44.5 49.3 53.0 57.2 62.2 71.1 71.3 80.6 28 29 Commercial banking 231.9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.9 653.5 29 30 Commercial banks 229.7 247.3 269.9 298.3 314.1 349.5 387.7 401.0 434.3 484.6 553.4 634.3 30 31 Bank affiliates 3.9 3.0 2.8 2.6 4.3 31 32 Foreign banking agencies "i.'s ""2.0 '"2.'4 ••'i.'s "'3,2 4.5 7.2 7.3 9.0 12.9 32 33 Banks in U.S. possessions .4 .5 .5 .6 .7 .9 1.0 1.2 1.3 1.6 1.9 2.0 33 34 Private nonbank finance 350.4 383.1 417.2 451.4 479.7 507.2 543.6 581.2 620.9 681.3 764.1 836.4 34 35 Savings and loan assns 85.9 99.2 110.2 119.8 124.4 133.4 143.3 153.2 164.7 194.0 230.4 257.5 35 36 Mutual savings banks 43.6 47.0 51.2 54.9 57.6 62.6 66.9 69.8 73.5 83.4 93.1 98.2 36 37 Credit unions 5.6 6.3 7.2 8.2 9.4 10.2 11.5 13.1 14.6 17.2 20.3 23.2 37 38 Life insurance companies 116.9 123.3 130.2 137.7 145.4 152.8 160.5 167.2 174.2 182.3 192.6 204.6 38 39 Private pension funds 23.0 25.2 27.5 29.6 32.2 33.0 34.0 34.6 37.0 35.4 34.9 36.8 39 40 State and local governments, rtr. funds 23.2 25.6 28.3 31.3 34.9 38.3 41.6 45.5 49.5 52.5 56.8 62.1 40 41 Other insurance companies 17.8 18.6 19.4 20.5 22.0 23.5 25.4 27.0 30.9 34.6 38.3 41.1 41 4 4 2 3 R Fi E na IT n S ce companies 28.6 33.1 ... 3 . 7 .. .1 . 42.8 44.9 45.5 50 . . 2 6 59 1 . . 2 1 5 3 9 . . 2 9 6 5 4 . . 8 0 7 1 4 0 . . 8 6 8 1 4 5 . . 9 1 4 4 2 3 44 Open-end investment cos •"2.'6 "'2.7 3.0 •"3.'8 '"5.'4 •"4.'8 5.8 6.7 7.2 7.2 7.2 7.0 44 45 Security brokers and dealers 3.1 2.1 2.9 2.7 3.5 3.2 3.8 3.9 6.3 4.9 5.1 5.8 45 46 Rest of the world 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.4 61.1 61.5 46 Total claims and their relation to total financial assets 1 Total credit market liabilities 881.4 947.1 1020.1 1100.3 1173.5 1251.3 1358.5 1473.5 1574.2 1723.5 1909.4 2139.6 1 Other liabilities 2 Official foreign exchange 1.2 1.2 1.2 1.6 1.6 2.8 4.8 5.1 2.6 .9 .7 .6 2 3 Treasury currency and SDR certificates 2.8 2.8 2.8 3.1 4.0 4.6 5.1 5.3 6.0 6.4 7.0 7.4 3 4 Deposits at finan. insts 393.1 427.7 466.7 507.2 530.1 585.9 634.0 640.8 710.1 809.4 918.2 1014.4 4 5 Banking system 265.2 . 284.6 307.7 335.1 351.2 390.1 425.6 424.4 476.7 535.4 598.1 666.2 5 6 Demand dep. and currency 166.6 171.6 180.2 187.4 191.3 206.3 221.1 229.3 243.6 261.0 281.3 298.5 6 7 Time and svgs. deposits 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 367.7 7 8 Savings institutions 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.0 320.1 348.2 8 9 Insurance and pension reserves 201.6 219.3 238.6 259.7 274.2 300.7 326.4 342.4 367.8 408.0 457.5 458.1 9 10 U.S. Government 22.6 23.9 25.3 26.7 28.1 29.5 30.8 32.4 34.9 37.8 41.0 43.0 10 11 Insurance sector 179.0 195.4 213.3 232.9 246.1 271.2 295.6 310.0 332.9 370.2 416.5 415.1 11 12 Security credit 13.9 16.7 16.8 18.0 18.7 25.8 32.3 25.7 24.9 28.7 37.5 29.3 12 13 Trade debt 89.1 96.7 104.6 117.8 129.8 140.9 159.8 183.2 193.3 199.4 217.1 240.9 13 14 Profit taxes payable 18.0 19.2 20.4 22.1 22.3 17.4 20.4 17.3 14.2 16.0 15.9 18.5 14 15 Miscellaneous 102.6 110.4 121.4 131.5 145.1 157.9 175.8 206.1 219.1 230.9 259.5 305.5 15 16 Interbank claims 25.5 24.6 26.2 26.6 28.9 31.6 35.3 37.2 41.7 47.3 49.3 57.1 16 17 Investment co. 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 17 18 Total liabilities above 1750.5 1890.9 2048.1 2223.0 2363.0 2563.5 2805.0 2984.9 3201.4 3527.1 3931.9 4317.9 18 Financial assets not included in borrowing: 19 Other corporate shares 484.4 571.8 633.0 713.7 647.8 824.8 975.0 859.4 852.9 989.5 1163.2 921.4 19 20 Gold and SDR's 41.5 42.3 43.0 43.2 43.2 41.6 40.9 41.0 44.7 48.1 55.9 61.1 20 — Floats not included in assets: 21 Demand dep.—U.S. Govt * .1 -.4 .1 -.2 -.6 _ 1 -.7 -.7 -.8 -.3 .1 21 22 Other 9.9 9.9 10.4 10.5 9.5 8.3 8'.8 10.9 12.0 12.1 15.3 15.4 22 23 Trade credit -8.5 -7.7 -8.4 -9.9 -11.8 -11.2 -12.8 -15.1 -14.4 -12.7 -16.8 -19.1 23 —Liabilities not allocated as assets: 24 Treasury currency -2.7 -2.6 -2.4 -2.4 -2.2 -2.0 -1.7 -1.5 -1.6 -1.6 -1.7 -1.7 24 25 Taxes payable 3.2 2.4 2.4 2.8 3.6 2.9 4.0 3.5 2.6 2.7 3.0 2.9 25 26 Miscellaneous 2.1 2.1 3.5 4.9 5.3 5.3 7.7 16.8 14.5 16.5 24.1 28.6 26 27 Totals allocated to sectors as assets 2272.3 2500.9 2719.0 2974.0 3049.8 3427.2 3815.2 3871.5 4086.6 4548.4 5127.5 5274.2 27 1 Excludes corporate equities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.20 FLOW OF FUNDS • OCTOBER 1974 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES-Continued (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 1090.6 1218.9 1329.4 1464.4 1460.0 1695.0 1910.3 1853.7 1918.9 2134.5 2405.8 2302.3 1 2 Deposits and credit market instruments i 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 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 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 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 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 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 1 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 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 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

OCTOBER 1974 • FLOW OF FUNDS A 59.21 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Farm business J Total financial assets 7.9 7.8 8.2 8.5 8.7 9.1 9.6 10.2 10.8 11.5 12.4 13.1 1 2 Demand deposits and currency 5.9 5.7 5.9 6.0 6.0 6.1 6.3 6.4 6.5 6.6 6.9 6.9 2 3 Miscellaneous assets 2.0 2.1 2.3 2.5 2.7 3.0 3.3 3.8 4.3 4.8 5.5 6.2 3 4 Insurance receivables 1.7 1.9 2.0 2.2 2.3 2.6 2.8 3.2 3.6 4.1 4.7 5.3 4 5 Equity in sponsored agencies ^ .2 .3 .3 .3 .4 .4 .5 .6 .6 .7 .8 .9 5 6 Total liabilities 28.4 31.5 34.5 38.4 42.8 47.1 50.0 53.9 58.1 62.9 69.2 78.3 6 7 Credit market instruments 23.9 26.4 29.0 32.3 35.8 39.2 41.9 45.1 48.3 52.0 56.9 64.5 7 8 Mortgages 15.2 16.8 18.9 21.2 23.3 25.5 27.5 29.5 31.2 32.9 35.4 38.8 8 9 Bank loans n.e.c 6.1 6.7 7.0 7.7 8.6 9.3 9.7 10.3 11.2 12.5 14.3 17.3 9 10 Other loans 2.6 2.9 3.1 3.5 3.9 4.5 4.7 5.3 5.9 6.7 7.1 8.4 10 11 U.S. Government .7 .8 .9 .9 .9 1.1 1.0 1.0 1.0 1.0 1.1 1.2 11 12 FICB 1.8 2.1 2.2 2.5 2.9 3.4 3.7 4.3 5.0 5.7 6.1 7.2 12 13 Trade debt 4.5 5.1 5.5 6.1 7.0 7.8 8.1 8.8 9.7 10.8 12.3 13.8 13 Nonfarm noncorporate business 1 Total financial assets 21.8 22.3 23.0 23.7 24.5 25.4 26.3 27.6 28.9 30.4 32.4 34.7 1 2 Demand deposits and currency 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 2 3 Consumer credit 5.9 6.3 6.6 7.1 7.6 8.0 8.5 9.1 9.7 10.4 11.4 12.7 3 4 Miscellaneous assets 3.3 3.5 3.8 4.1 4.4 4.8 5.3 6.0 6.7 7.5 8.5 9.5 4 5 Insurance receivables 3.3 3.5 3.7 4.0 4.3 4.7 5.2 5.8 6.5 7.3 8.3 9.2 5 6 Equity in sponsored agencies i .1 .1 .1 .1 .1 .1 .2 .2 .2 .2 .2 6 7 Total liabilities 32.5 36.3 41.3 46.5 50.6 56.2 61.7 69.1 74.5 83.6 94.8 103.1 7 8 Credit market instruments 30.6 35.1 40.4 46.2 51.6 56.5 62.1 69.5 74.7 83.4 93.8 103.1 8 9 Mortgages 17.8 20.6 24.0 27.1 29.5 33.2 36.7 40.4 45.3 53.3 62.6 69.6 9 10 Home 1.2 1.4 1.2 1.3 .8 1.4 1.6 1.4 1.5 2.5 3.1 2.7 10 11 Multifamily 13.6 15.8 19.1 21.8 24.2 27.0 29.7 33.3 37.7 43.8 51.1 57.0 11 12 Commercial 3.0 3.4 3.7 4.0 4.5 4.8 5.3 5.8 6.1 7.0 8.4 9.9 12 13 Bank loans n.e.c 4.5 5.2 5.7 6.6 8.0 8.6 9.7 11.8 11.2 11.4 12.1 12.5 13 14 Other loans 8.3 9.3 10.8 12.4 14.1 14.7 15.8 17.2 18.2 18.7 19.1 20.9 14 15 Trade debt, net 1.9 1.2 .8 .3 -1.0 -.3 -.4 -.4 -.2 .2 1.0 • 15 16 Trade debt 15.5 14.7 14.7 14.3 13.5 14.7 13.5 13.9 13.0 13.1 13.6 12.0 16 17 Trade receivables 13.6 13.6 13.9 14.0 14.5 15.0 13.9 14.3 13.1 13.0 12.6 12.0 17 Nonfinancial corporate business 1 Total financial assets 206.5 222.2 237.0 258.7 273.0 291.5 322.8 354.0 369.7 395.8 431.2 480.2 1 2 Liquid assets 59.6 64.2 65.1 67.8 64.1 68.8 76.7 78.9 78.5 89.1 93.1 100.1 2 3 Demand deposits and currency 28.0 28.3 28.6 28.9 29.2 30.7 32.4 34.9 35.8 36.3 36.2 35.9 3 4 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 4 5 U.S. Govt, securities 16.8 16.7 15.2 12.7 11.5 8.9 9.3 7.0 7.5 9.7 7.2 5.4 5 6 State and local obligations 2.7 3.8 3.7 4.6 3.6 3.3 3.8 2.8 2.2 3.2 4.2 4.0 6 7 Open-market paper 3.7 4.6 6.3 6.7 6.5 10.7 14.8 18.9 19.4 21.8 22.6 27.9 7 8 Security R.P.'s .6 1.7 1.5 1.3 2.2 3.6 .2 1.1 2.7 5.3 8 9 Consumer credit 10.6 11.6 12.9 13.2 13.7 14.0 14.0 14.3 15.0 15.6 17.1 19.2 9 10 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 10 11 Miscellaneous assets 43.8 47.5 51.9 56.9 62.3 67.4 72.2 78.1 85.1 94.4 104.2 120.1 11 12 Foreign direct investment 37.2 40.7 44.4 49.2 53.9 58.3 61.6 66.6 73.0 79.8 86.0 97.7 12 13 Foreign currencies .8 .7 1.1 .8 .9 1.1 1.6 1.3 .9 2.3 4.1 6.7 13 14 Insurance receivables 5.7 6.0 6.4 6.8 7.3 8.0 8.8 9.9 10.8 11.9 13.7 15.3 14 15 Equity in sponsored agencies .1 •1 .1 .1 .1 .1 .2 .2 .3 .4 .4 .4 15 16 Total liabilities 270.2 292.3 313.7 348.9 383.9 414.7 466.6 520.7 559.6 600.4 658.6 743.8 16 17 Credit market instruments 175.0 187.8 201.3 221.8 245.7 272.9 303.9 339.5 373.2 407.8 451.8 511.6 17 18 Tax-exempt bonds . I .6 2.4 18 19 Corporate bonds "84; 5 "88.'4 "92;4 '97!8 m.b 'i22!7 issie 'i47;6 'i67.'3 186.1 198.3 207.5 19 20 •Mortgages 40.5 45.4 49.0 52.8 57.1 61.6 67.2 71.8 77.0 88.5 104.1 120.2 20 21 Home 1.2 1.4 1.2 1.3 .8 1.4 1.6 1.4 1.5 2.5 3.1 2.7 21 22 Multifamily 12.2 13.2 14.5 15.3 16.1 16.9 17.5 18.7 20.2 22.8 25.8 28.3 22 23 Commercial 27.1 30.8 33.3 36.2 40.2 43.3 48.1 51.8 55.3 63.2 75.2 89.3 23 24 Bank loans n.e.c 41.5 45.2 50.1 60.7 68.9 75.5 85.1 97.0 102.5 106.9 120.0 150.7 24 25 Open-market paper 1.6 1.3 1.5 1.2 2.2 3.7 5.3 8.0 10.6 9.1 8.6 8.2 25 26 Finance company loans 5.6 6.3 7.0 7.6 7.5 7.2 9.0 13.3 13.7 15.6 18.4 20.4 26 27 U.S. Govt, loans 1.1 1.2 1.4 1.7 2.0 2.2 1.7 1.8 2.1 1.6 1.8 2.2 27 28 Profit taxes payable 15.9 17.5 18.0 20.2 20.4 15.6 18.5 15.2 11.5 13.3 13.3 15.6 28 29 Trade debt 71.7 79.1 86.0 98.1 108.7 116.2 133.4 154.2 161.7 165.6 179.3 198.9 29 30 Miscellaneous liabilities 7.6 7.9 8.4 8.8 9.1 9.9 10.8 11.8 13.3 13.7 14.3 17.7 30 31 Memo: Net trade credit 20.9 19.7 21.0 22.8 24.2 25.1 26.6 28.5 29.3 31.2 37.5 42.0 31 1 Shares in FICB's, banks for coops, and land banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.22 FLOW OF FUNDS • OCTOBER 1974 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES-Continued (Amounts outstanding at end of year; in billions of dollars) j Category 1962 1963 1964 1 1965 1 1966 1 1967 1968 1969 1970 1971 1972 1973 State and local governments—General funds i 1 Total financial assets 37.2 41.3 44.5 49.3 53.4 56.8 62.3 64.3 71.8 78.3 90.5 98.5 1 2 Demand deposits and currency 9.4 10.9 12.5 12.1 13.0 14.1 13.9 15.3 12.5 13.5 15.0 14.7 2 3 Time deposits 6.5 8.1 9.8 12.2 13.5 15.9 19.1 13.2 23.2 30.4 37.2 44.4 3 4 Credit market instruments 19.9 20.6 20.4 23.1 24.9 24.6 26.9 33.3 33.6 31.6 35.2 35.7 4 5 U.S. Government securities 15.2 16.1 16.0 18.8 20.7 20.3 22.5 28.9 29.1 27.3 30.8 31.0 5 6 Direct 14.4 15.1 15.2 18.0 20.5 19.7 19.2 22.2 23.2 21.9 25.9 27.1 6 7 U.S. Government agency securities .8 1.0 .8 .9 .2 .7 3.3 6.7 5.9 5.5 4.9 3.9 7 8 State and local obligations 2.6 2.3 2.2 2.2 2.1 2.1 2.2 2.2 2.4 2.1 2.3 2.5 8 9 Home mortgages 2.1 2.2 2.2 2.1 2.1 2.2 2.2 2.2 2.1 2.2 2.2 2.2 9 10 Taxes receivable 1.5 1.7 1.8 1.9 2.0 2.2 2.5 2.4 2.5 2.8 3.1 3.7 10 11 Total liabilities 86.0 92.2 98.7 106.7 113.5 122.1 132.6 143.8 155.7 174.2 189.0 202.4 11 12 Credit market instruments 83.2 89.1 95.4 103.1 109.3 117.3 127.2 .137.9 149.2 167.0 181.2 193.5 12 13 State and local obligations 81.2 86.9 92.9 100.3 105.9 113.7 123.2 133.1 144.4 161.9 175.7 187.6 13 14 Short-term 3.7 4.1 4.9 5.5 6.2 8.0 8.1 10.9 13.3 15.7 15.1 14.8 14 15 Other 77.5 82.8 88.0 94.8 99.8 105.7 115.1 122.2 131.1 146.1 160.6 172.8 15 16 U.S. Government loans 2.0 2.2 2.5 2.8 3.4 3.6 4.0 4.7 4.8 5.2 5.5 5.9 16 17 Trade debt 2.8 3.0 3.3 3.7 4.2 4.8 5.4 5.9 6.5 7.1 7.8 8.9 17 U.S. Government 1 Total financial assets 60.3 63.9 68.3 71.2 75.5 78.9 85.9 89.6 90.9 95.3 97.0 102.9 1 2 Gold, SDR's, and official foreign exchange 1.2 1.2 1.0 1.1 .9 1.3 3.3 4.7 3.6 2.1 2.6 2.9 2 3 Demand deposits and currency 8.1 7.7 8.3 6.9 6.8 8.3 6.6 7.7 10.2 13.5 13.3 12.6 3 4 Time deposits .3 .3 .3 .3 .2 .3 .4 .2 .5 .5 .6 .4 4 5 Credit market instruments 30.8 32.2 34.9 37.7 42.0 46.6 51.1 54.0 56.7 59.2 62.2 65.2 5 6 Sponsored agency issues * * • 1.4 1.3 1.4 .1 • * * * 6 7 Home mortages •'4.5 4.1 4.0 3.9 4.5 5.2 6.0 6.1 6.0 5.7 5.1 3.9 7 8 Other mortgages 1.7 1.7 1.7 1.7 1.9 2.1 2.4 3.0 3.5 3.8 4.2 4.8 8 9 Other loans 24.5 26.3 29.2 32.0 34.3 38.0 41.3 44.7 47.2 49.7 52.9 56.5 9 10 To rest of the world 14.9 16.0 17.5 19.0 19.8 22.3 24.4 26.5 27.7 29.5 31.7 33.4 10 11 To others 9.6 10.4 11.7 13.0 14.5 15.7 16.9 18.2 19.5 20.1 21.2 23.1 11 12 Taxes receivable 13.3 15.1 16.2 17.4 16.7 12.3 14.0 11.4 9.1 10.5 9.8 11.9 12 13 Trade credit 2.0 2.5 2.7 3.1 4.4 5.8 6.4 7.3 6.6 4.9 4.0 4.3 13 14 Miscellaneous assets 4.6 4.9 4.8 4.7 4.4 4.3 4.1 4.2 4.4 4.6 4.4 5.4 14 15 Total liabilities 280.0 285.1 292.4 296.4 303.2 319.1 334.4 332.0 346.7 375.5 396.4 408.6 15 16 Treasury currency and SDR certificates 2.8 2.8 2.8 3.1 4.0 4.6 5.1 5.3 6.0 6.4 7.0 7.4 16 17 Credit market instruments 250.2 254.1 260.4 262.2 265.8 278.8 292.2 288.6 301.4 327.4 344.7 354.4 17 18 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 18 19 Short-term marketable 99.8 101.1 105.8 108.8 110.2 118.9 119.4 128.4 133.8 130.4 143.5 153.1 19 20 Other direct 100.2 101.9 101.6 99.3 99.5 98.9 108.3 98.4 105.6 132.7 130.1 125.6 20 21 Budget agency issues . 1 .2 .2 .2 .3 .5 1.9 1.6 1.9 2.5 4.5 5.3 21 22 Loan participations 1.4 1.2 2.0 2.4 3.7 7.7 9.4 7.5 7.1 6.5 8.0 9.3 22 23 Home mortgages 1.7 1.8 1.8 1.8 1.8 1.7 1.7 1.6 1.5 1.4 1.3 1.3 23 24 Trade debt 3.7 3.6 3.4 3.9 4.5 5.1 5.1 4.8 4.2 3.5 3.4 3.5 24 25 Life insurance reserves 6.6 6.8 6.9 7.0 7.1 7.2 7.2 7.3 7.4 7.4 7.5 7.6 25 26 Retirement fund reserves 16.0 17.2 18.4 19.7 21.0 22.3 23.6 25.1 27.5 30.4 33.5 35.4 26 27 Miscellaneous liabilities .8 .7 .6 .6 .8 1.0 1.2 .9 .3 .3 .3 .3 27 Federally sponsored credit agencies 2 1 Total financial assets 14.3 15.8 16.5 18.8 23.8 23.7 27.0 36.1 46.9 50.3 56.9 79.0 1 2 Demand deposits and currency .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .3 2 3 Credit market instruments 13.7 15.3 16.0 18.3 23.4 23.3 26.5 35.4 45.4 48.6 55.6 75.9 3 4 U.S. Government securities 1.8 2.2 1.8 1.9 2.9 2.9 2.7 2.3 4.2 3.1 2.7 4.0 4 5 Mortgages 5.9 5.4 5.7 6.8 9.4 11.1 13.3 17.8 23.6 29.9 36.6 47.0 5 6 Home 2.8 2.1 2.0 2.5 4.4 5.5 7.2 11.0 16.1 20.9 25.2 31.6 6 7 Multifamily * * * * « * * .3 1.1 2.3 4.3 7 8 Farm (FLB) 3.1 3.3 3.7 4.3 5.0 5.6 6.1 6.7 7.2 7.9 9.1 11.1 8 9 Other loans 6.1 7.7 8.5 9.6 11.1 9.3 10.5 15.3 17.6 15.6 16.4 24.9 9 10 To coops (BC) .7 .8 1.0 1.1 1.3 1.5 1.6 1.7 2.0 2.0 2.3 2.6 10 11 To farmers (FICB) 1.8 2.1 2.2 2.5 2.9 3.4 3.7 4.3 5.0 5.7 6.1 7.2 11 12 To S & L's (FHLB) 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 15.1 12 13 Miscellaneous assets .4 .3 .3 .3 .3 .3 .3 .5 1.3 1.5 1.1 2.8 13 14 Total liabilities 13.7 15.1 15.7 18.0 23.0 22.8 26.1 35.2 46.0 49.3 55.8 77.5 14 15 Credit market instruments 10.1 11.5 12.1 14.2 19.0 18.4 21.9 30.6 38.9 43.2 49.4 68.9 15 16 Sponsored agency issues 10.0 11.5 11.9 13.8 18.9 18.4 21.6 30.6 38.9 43.2 49.4 68.9 16 17 U.S. Government loans .1 .1 .3 .1 * .3 17 18 Miscellaneous liabilities 3.6 3.6 3.7 3.8 4.0 4.4 4.2 4.5 7.1 6.1 6.4 8.6 18 19 Deposits at FHLB's 1.2 1.2 1.2 1.0 1.0 1.4 1.4 1.0 2.3 1.8 1.5 1.7 19 20 Capital subscriptions 1.9 1.9 1.9 2.0 2.3 2.4 2.2 2.4 2.7 2.8 3.1 3.7 20 21 Other . 5 . 5 .5 .7 .6 .6 .6 2.0 1.5 1.7 3.1 21 1 Employee retirement funds are on page A-59.26. operatives, and Federal land banks. These agencies are privately owned 2 This group consists of Federal home loan banks. Federal National and are excluded from U.S. Government budget accounts as of 1969 Mortgage Association, Federal intermediate credit banks, banks for co- and from U.S. Government figures in these accounts for all years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.23 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Monetary authorities 1 Total financial assets 55.3 57.5 60.8 63.1 67.3 72.1 75.8 80.0 85.2 93.5 96.5 105.5 1 2 Gold and foreign exchange i 16.0 15.6 15.6 14.3 14.0 13.5 12.4 12.3 10.9 10.1 10.5 11.5 2 3 Treasury currency and SDR certificates 5.4 5.4 5.2 5.4 6.2 6.6 6.8 6.8 7.5 8.0 8.7 9.1 3 4 F.R. float 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4.3 4.3 4.0 3.1 4 5 F.R. loans to domestic banks * * .2 .1 .2 1 .2 .2 .3 * 2.0 1.3 5 6 Credit market instruments 30.9 33.8 37.2 41.0 44.5 49! 3 53.0 57.2 62.2 71.1 71.3 80.6 6 7 U.S. Govt, securities 30.8 33.6 37.0 40.8 44.3 49.1 52.9 57.2 62.1 70.8 71.2 80.5 7 8 Short-term marketable 20.7 25.6 28.2 31.9 36.5 39.2 32.6 37.6 38.5 39.5 41.2 50.6 8 9 Other direct ...1.0...1 8.0 ...8...8. 8.9 7.8 9.9 ..2..0..4. ..1..9..5. 23.7 30.7 28.7 27.9 9 10 Agency issues .6 1.3 2.0 10 11 Acceptances . 1 .3 .1 .1 11 12 Bapk loans n.e.c * * * * 12 13 Total liabilities 55.2 57.3 61.4 63.6 67.8 72.6 76.2 80.4 85.6 94.0 96.9 105.7 13 14 Member bank reserves 17.5 17.0 18.1 18.4 19.8 21.1 21.9 22.1 24.2 27.8 25.6 27.1 14 15 Vault cash of commercial banks 4.5 4.3 4.5 4.9 5.5 5.9 7.2 7.3 7.0 7.5 8.7 10.7 15 16 Demand deposits and currency 32.1 34.9 36.8 38.8 41.2 44.2 45.7 48.9 52.0 56.4 60.4 65.0 16 17 Due to U.S. Government 1.0 1.2 1.4 1.4 1.6 2.5 1.5 2.0 1.6 2.5 2.2 2.9 17 18 Due to rest of the world .3 .2 .3 .2 .4 .4 .5 .4 .3 .5 .4 .3 18 19 Currency outside banks 30.8 33.4 35.1 37.2 39.2 41.3 43.7 46.6 50.0 53.4 57.9 61.8 19 20 Profit taxes payable .1 .1 .7 .2 .2 .2 .2 .2 .2 .2 .2 .3 20 21 Other 1.0 1.0 1.3 1.3 1.2 1.2 1.3 1.8 2.2 2.1 2.0 2.7 21 Commercial banking 2 1 Total financial assets 269.3 287.5 313.7 343.5 363.7 404.6 450.8 473.0 518.2 576.7 655.0 755.2 1 2 Demand deposits and currency 1 .1 .2 .1 .2 .2 .2 .3 .4 .5 .7 1.0 2 3 Total bank credit 3 24O!O 258.6 281.8 310.4 327.4 364.8 404.9 422.6 459.2 510.6 586.0 669.3 3 4 Credit market instruments 231.9 249.5 272.2 300.9 317.3 353.1 391.9 410.7 445.7 496.3 566.9 653.5 4 5 U.S. Govt, securities 71.4 68.5 68.8 66.0 62.9 72.3 75.5 65.5 75.9 83.6 90.0 88.8 5 6 Short-term direct 27.7 24.0 28.2 26.7 21.8 27.3 29.1 24.9 30.3 24.9 30.3 28.5 6 7 Other direct 39.4 39.8 35.4 33.5 35.0 35.9 36.2 30.7 32.2 40.7 37.7 30.7 7 8 Agency issues 4.4 4.7 5.2 5.8 6.1 9.0 10.2 9.9 13.4 17.9 22.0 29.6 8 9 Other securities and mortgages 61.5 70.4 78.6 89.4 96.5 111.0 126.6 132.2 146.2 169.3 195.0 220.9 9 10 State and local obligations 26.2 30.1 33.7 38.9 41.2 50.3 58.9 59.5 70.2 82.8 90.0 95.7 10 11 Corporate bonds .8 .8 .9 .8 .9 1.7 2.0 1.9 2.7 4.0 5.7 6.2 11 12 Home mortgages 22.1 24.9 27.2 30.4 32.8 35.3 38.8 41.4 42.3 48.0 57.0 68.0 12 13 Other mortgages 12.3 14.5 16.8 19.3 21.6 23.7 26.9 29.3 30.9 34.5 42.3 51.1 13 14 Other credit exc. security 99.0 110.7 124.9 145.6 157.9 169.8 189.8 213.0 223.6 243.4 281.9 343.8 14 15 Consumer credit 23.7 27.2 31.0 35.7 38.3 40.6 46.3 51.0 53.9 60.6 70.6 81.2 15 16 Bank loans n.e.c 72.2 80.1 89.8 106.2 115.9 123.4 139.1 157.2 162.9 175.2 203.8 255.9 16 17 Open-market paper 2.4 2.5 3.1 2.7 3.7 5.8 4.4 4.9 6.9 7.7 7.5 6.7 17 18 Hypothecated deposits .8 .8 1.0 1.1 18 19 Corporate equities .1 .1 , 1 .2 19 20 Security credit 8.0 9.0 9.4 9.3 9.9 11.3 12.7 11.5 13.0 13.8 18.5 15.1 20 21 Member bank reserves 17.5 17.0 18.1 18.4 19.8 21.1 21.9 22.1 24.2 27.8 25.6 27.1 21 22 Vault cash 4.5 4.3 4.5 4.9 5.5 5.9 7.2 7.3 7.0 7.5 8.7 10.7 22 23 Other interbank claims .6 .7 .9 .9 .9 1.9 2.6 4.2 5.9 7.6 9.0 15.0 23 24 Miscellaneous assets 6.5 6.8 8.3 8.8 10.0 10.7 14.1 16.5 21.5 22.7 25.0 32.2 24 25 Total liabilities 248.6 267.0 291.5 320.0 339.0 378.2 422.7 443.5 487.0 543.2 618.3 714.5 25 26 Demand deposits, net 134.5 136.7 143.4 148.6 150.1 162.2 175.4 180.4 191.6 204.6 220.9 233.5 26 27 U.S. Government 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 9.9 27 28 Other 127.4 130.1 136.9 143.1 145.2 156.9 170.4 175.3 183.7 194.4 210.1 223.7 28 29 Time deposits 98.6 113.0 127.6 147.7 159.8 183.7 204.5 195.1 233.1 274.5 316.8 367.7 29 30 Large negotiable CD's 6.2 9.9 12.6 16.3 15.7 20.3 23.5 10.9 26.1 34.8 44.5 64.5 30 31 Other at commercial banks 92.1 102.7 114.6 130.9 143.6 162.8 180.2 183.2 205.6 238.0 271.1 301.4 31 32 At foreign banking agencies .3 .4 .4 .5 .5 .6 .8 1.0 1.4 1.7 1.2 1.8 32 33 Credit market debt m .3 1.5 3.4 3.3 3.4 4.8 10.6 5.6 8.8 13.2 23.8 33 34 Federal Reserve float 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4.3 4.3 4.0 3.1 34 35 Borrowing at F.R. Banks * * .2 .1 .2 .2 .2 .3 * 2.0 1.3 35 36 Other interbank claims .6 .7 .9 .9 .9 U9 2.6 4.2 5.9 7.6 9.0 15.0 36 37 Profit taxes payable 1.1 .6 .8 .7 .7 .6 .5 .6 1.0 .9 .7 .8 37 38 Miscellaneous liabilities 10.8 13.1 14.6 16.4 21.4 23.7 31.2 49.0 45.2 42.5 51.8 69.3 38 39 Liabilities to foreign affiliates 3.7 4.0 4.6 4.7 7.6 8.3 10.6 18.6 11.6 7.6 8.5 9.6 39 40 Other 7.1 9.1 10.0 11.8 13.8 15.3 20.6 30.4 33.6 34.9 43.3 59.7 40 1 Monetary gold stock and F.R. holdings of foreign currencies. Ex- Edge Act corporations, agencies of foreign banks, and banks in U.S. change Stabilization Fund holdings of gold and foreign exchange are possessions. Edge Act corporations and agencies of foreign banks appear in U.S. Govt, account, p. A-59.22. together in these tables as "foreign banking agencies." 2 Consists of chartered commercial banks, their domestic affiliates. 3 Gross of bad debt reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.24 FLOW OF FUNDS • OCTOBER 1974 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES-Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Commercial banks 1 Total financial assets 264.0 281.6 306.4 336.4 355.5 395.4 438.9 452.7 490.7 547.2 624.5 713.1 1 2 Total bank credit 237.0 255.2 278.3 306.8 323.2 260.0 399.5 411.7 446.4 497.5 571.0 648.9 2 3 Credit market instruments 229.7 247.3 269.9 298.3 314.1 349.5 387.7 401.0 434.3 484.6 553.4 634.3 3 4 U.S. Govt, securities 70.8 67.9 68.2 65.3 62.2 71.5 74.7 64.6 75.1 82.9 88.8 87.5 4 5 Direct 66.4 63.2 63.0 59.5 56.2 62.5 64.5 54.7 61.7 64.9 67.0 58.3 5 6 Agency issues 4.4 4.7 5.2 5.8 6.1 9.0 10.2 9.9 13.4 17.9 21.8 29.3 6 7 Other securities and mortgages 61.1 70.0 78.1 88.8 95.8 110.1 125.7 131.1 144.8 168.0 193.3 218.9 7 8 State and local obligations 26.0 30.0 33.5 38.7 41.0 50.0 58.6 59.2 69.6 82.4 89.5 95.1 8 9 Corporate bonds .8 .8 .9 .8 .9 1.6 1.9 1.9 2.7 3.9 5.3 5.8 9 10 Home mortgages 22.0 24.7 27.0 30.1 32.5 34.9 38.3 40.9 41.8 47.3 56.3 67.3 10 11 Other mortgages 12.3 14.4 16.7 19.2 21.5 23.6 26.8 29.1 30.7 34.3 42.1 50.7 11 12 Other credit excluding security 97.8 109.4 123.6 144.1 156.1 167.9 187.4 205.4 214.4 233.7 271.3 327.8 12 13 Consumer credit 23.7 27.2 31.0 35.7 38.3 40.6 46.3 51.0 53.9 60.6 70.6 81.2 13 14 Bank loans n.e.c 71.1 79.0 88.6 104.9 114.2 121.6 136.8 149.6 153.7 165.7 193.3 240.0 14 15 Open-market paper 3.0 3.2 3.9 3.6 3.6 5.7 4.3 4.8 6.7 7.5 7.3 6.6 15 16 Security credit 7.3 7.9 8.4 8.5 9.0 10.5 11.8 10.7 12.1 12.9 17.6 14.6 16 17 Interbank claims 22.1 21.4 22.6 23.3 25.3 27.1 29.1 29.5 31.5 35.5 37.1 42.8 17 18 Vault cash and member bank reserves 22.0 21.3 22.6 23.3 25.2 27.0 29.1 29.4 31.2 35.3 34.3 37.8 18 19 Deposits at foreign banking agencies .1 .1 • • .1 .1 . 1 .3 .2 2.8 5.1 19 20 Miscellaneous assets 4.9 5.0 5.5 6.2 77!!II 8.3 10.2 11.4 12.7 14.2 16.5 21.4 20 21 Total liabilities 243.3 261.1 284.2 312.8 330.8 369.0 410.7 423.2 459.4 513.7 587.9 672.4 21 22 Demand deposits, net 133.3 135.6 141.5 147.0 148.6 160.5 172.8 177.4 182.0 195.5 215.6 228.6 22 23 U.S. Government 7.2 6.5 6.5 5.5 5.0 5.2 5.0 5.1 7.9 10.2 10.9 9.9 23 24 Other 126.2 129.0 135.0 141.5 143.6 155.2 167.8 172.3 174.1 185.3 204.7 213.7 24 25 Time deposits 98,3 112.6 127.2 147.2 159.3 183.1 203.7 194.1 231.7 272.8 315.6 365.9 25 26 Large negotiable CD's 6.2 9.9 12.6 16.3 15.7 20.3 23.5 10.9 26.1 34.8 44.5 64.5 26 27 Other 92.1 102.7 114.6 130.9 143.6 162.8 180.2 183.2 205.6 238.0 271.1 301.4 27 28 Corporate bonds .2 .8 1.6 1.7 2.0 2.2 2.0 2.1 3.0 4.1 4.1 28 29 Security RP's .6 1.7 1.5 1.3 2.3 4.0 ^ "j 1.7 3.5 6.8 29 30 Profit taxes payable ""I'.'i .8 .7 .7 .6 .5 .6 i!o .9 .7 .8 30 31 Interbank liabilities 3.5 3.2 3.6 3.2 3.5 4.5 6.1 7.7 10.2 11.7 12.2 14.3 31 32 F.R. float 2.9 2.6 2.6 2.2 2.5 2.6 3.4 3.4 4.3 4.3 4.0 3.1 32 33 Borrowing at F.R. banks * * .2 1 .2 . 1 .2 .2 * 2.0 1.3 33 34 Demand deposits of fgn. banking agencies .5 .5 .5 .7 .7 1.6 2.3 3.1 4'.A 5.6 4.4 7.0 34 35 Time deposits of fgn. banking agencies .' . 1 .4 .6 35 36 Loans from affiliates ...... 1.0 .6 .2 36 37 Loans from foreign banking agencies . i .4 .6 .8 2.2 37 38 Miscellaneous liabilities 7.1 8.9 9.6 11.4 15.5 17.0 23.0 37.4 3I!8 28,1 36.2 51.9 38 39 Liabilities to foreign branches .9 1.0 1.1 1.4 4.0 4.2 6.0 12.8 5.7 .9 1,4 1.8 39 40 Other 6.3 7.9 8.5 10.1 11.5 12.7 17.0 24.6 26.1 27.2 34.8 50.1 40 Domestic affiliates of commercial banks 1 Total financial assets 4.5 3.6 3.8 3.2 4.5 1 2 Bank loans n.e.c 3.9 3.0 2.8 2.6 4.3 2 3 Loans to affiliate banks .6 .7 1.0 .6 .2 3 4 Total liabilities 4.5 3.6 3.8 3.2 4.5 4 5 Commercial paper issues.... 4.2 2.3 2.0 2.6 4.9 5 6, Miscellaneous liabilities .3 1.3 1.9 .6 -.4 6 Edge Act corporations and agencies of foreign banks Total financial assets 4.4 4.8 6.0 5.8 6.5 7.3 9.8 12.5 20.1 21.4 22.5 32.4 1 2 Credit market instruments 1.9 1.7 1.8 2.0 2.4 2.8 3.2 4.5 7.2 7.3 9.0 12.9 2 3 U.S. Govt, securities .5 .4 .5 .5 .6 .6 .6 .5 .3 .6 .7 3 4 State and local obligations .2 .1 , 1 .1 .2 .2 .2 .4 .2 . 1 .2 4 5 Corporate bonds * * * » » * * » • .3 .3 5 6 Bank loans n.e.c 1.0 1.1 1.2 1.3 1.7 1.8 2.3 3.6 6.2 6.7 7.8 11.6 6 7 Open-market paper .2 , 1 .1 .1 . 1 .1 1 .1 .1 .1 . 1 7 8 Corporate equities . 1 .1 .2 .2 .3 .4 .4 .5 .5 .6 .7 8 9 Security credit .7 1.1 1.1 .8 .9 .9 .9 .9 .9 .9 .9 .5 9 1 1 1 0 T D i e m m e a d n e d p d o e si p ts o s a it t s c a o t m c m om er m ci e a r l c b ia a l n b ks a nks ......5. .5 .7 .7 1.6 2.3 3.1 4. . 4 1 5. . 6 1 4. . 4 4 7. . 0 6 1 1 1 0 12 Loans to banks .5 .6 .8 2.2 12 13 Miscellaneous assets 1.2 I!3 2.2 2.0 2.2 1.5 2.9 3.2 6.7 6.4 6.4 8.6 13 14 Total liabilities 4.4 4.8 6.0 5.8 6.5 7.3 9.8 12.5 20.1 21.4 22.5 32.4 14 15 Demand deposits in money stock 1.2 1.1 1.8 1.6 1.5 1.7 2.7 3.0 9.6 9.1 5.4 5.0 15 16 Time deposits .3 .4 .5 .5 .6 .8 1.0 1.4 1.7 1.2 1.8 16 17 Deposits of banks .1 » • .1 . 1 .1 .1 .3 .2 2.8 5.1 17 18 Loans from banks • . 1 . 1 .1 .1 .2 .3 .4 2.1 2.9 8.0 18 19 Miscellaneous liabilities 2.7 3.2 3.7 3.6 4.3 4.8 6.0 7.9 8.4 8.3 10.3 12.5 19 20 Due to foreign affiliates 2.8 3.0 3.5 3.3 3.6 4.1 4.6 5.7 6.0 6.7 7.1 7.8 20 21 Other.... -.1 .1 .2 .3 .7 .7 1.4 2.2 2.4 1.6 3.2 4.7 21 Banks in U.S. possessions 1 Total financial assets .9 1.1 1. 1.3 1.6 1.9 2.2 3.3 3.8 4.3 4.8 5.2 1 2 Demand deposits and currency .1 .1 .2 .2 .2 .3 .4 .5 .7 1.0 2 3 Credit market instruments .4 .5 .7 .9 1.0 1.2 1.3 1.6 1.9 2.0 3 4 U.S. Govt, securities .1 .2 .2 .2 .2 .2 .3 .4 .6 .6 4 5 State and local obligations * .1 .1 .1 .2 .2 .2 .2 .3 .4 5 6 Corporate bonds * * * .1 .1 .1 1 .1 6 7 Mortgages .1 .2 .2 . 3 .3 [4 [4 .4 .6 .7 '.7 .7 7 8 Commercial mortgages .1 .1 .1 .1 .1 .1 .2 .2 .2 .2 .3 8 9 Miscellaneous assets .5 .5 .6 '.6 .7 .8 1.0 1.8 2.1 2.1 2.1 2.2 9 10 Total deposit liabilities .9 1.1 1.3 1.3 1.6 1.9 2.2 3.3 3.8 4.3 4.8 5.2 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.25 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Private nonbank financial institutions—Total 1 Total financial assets 437.5 485.4 533.1 584.7 610.3 672.2 736.3 767.5 820.0 928.6 1065.2 1102.0 1 2 Demand deposits and currency 10.8 10.9 11.1 11.5 11.3 12.0 12.9 12.5 13.5 14.5 16.2 18.2 2 3 Time deposits (mutual savings banks) .2 . 1 .2 .2 .2 .2 .2 .1 .3 .5 .6 .8 3 4 Savings and loan shares (credit unions) .4 .4 .5 .4 . 1 .3 . 1 * .1 .2 .4 .4 4 5 Corporate equities 57.3 . 69.6 81.6 96.7 92.9 120.0 142.6 139.1 147.8 190.5 235.5 198.0 5 6 Credit market instruments 350.4 383.1 417.2 451.4 479.7 507.2 543.6 581.2 620.9 681.3 764.1 836.4 6 7 U.S. Government securities 37.1 37.3 39.1 38.9 39.1 36.8 38.8 36.6 40.4 43.3 50.4 52.4 7 8 State and local obligations 18.8 18.7 18.7 18.3 19.0 20.2 21.4 22.4 24.2 28.6 33.7 37.3 8 9 Corporate and foreign bonds 89.7 96.2 102.9 110.7 119.9 131.8 141.7 149.1 160.7 174.6 187.8 198.7 9 10 Home mortgages 123.3 137.4 150.3 162.2 167.8 175.6 184.1 193.2 200.6 218.4 249.1 274.6 10 Other mortgages 42.1 49.3 57.1 64.9 71.7 78.4 85.6 93.2 103.3 117.9 134.6 150.0 11 12 Consumer credit 23.6 26.6 29.7 34.0 36.7 38.2 42.0 46.8 48.6 51.9 58.3 67.4 12 13 Other loans 15.7 17.5 19.4 22.3 25.6 26.2 30.0 39.9 43.0 46.5 50.1 56.0 13 14 Security credit 4.6 6.1 5.6 6.0 6.0 9.2 12.0 8.5 7.2 9.7 13.6 9.1 14 15 Trade credit 2.2 2.3 2.5 2.6 2.9 3.2 3.5 3.9 4.4 4.7 5.8 6.5 15 16 Miscellaneous assets 11.7 12.8 14.3 15.8 17.4 20.1 21.4 22.2 25.9 27.2 28.9 32.7 16 17 Total liabilities 396.7 441.2 485.9 534.3 561.4 620.1 680.3 714.1 765.0 865.4 990.3 1028.8 17 18 Time and savings accounts 127.9 143.1 159.0 172.0 179.0 195.8 208.4 216.4 233.4 274.0 320.1 348.2 18 19 Insurance and pension reserves 179.0 195.4 213.3 232.9 246.1 271.2 295.6 310.0 332.9 370.2 416.5 415.1 19 20 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 20 21 Credit market instruments 28.8 34.7 39.1 45.1 48.3 47.9 55.0 68.4 73.1 79.2 95.4 116.4 21 22 Corporate bonds 10.7 12.2 14.3 16.1 16.9 17.9 18.8 20.4 23.5 27.7 33.5 35.8 22 23 Mortgage loans in process 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.0 6.2 4.7 23 24 Other mortgages .2 .4 .5 .7 1.2 1.5 24 25 Bank loans n.e.c ' "7.8 ""9.'4 ''""iioo..oo "12.3 "ii.'i '9.2 11.7 14.3 13.7 15.1 21.2 29.6 25 26 Other loans 8.3 10.6 12.6 14.5 19.0 18.4 21.9 30.8 32.3 30.8 33.3 44.8 26 27 Open-market paper 4.8 5.8 7.3 8.5 12.0 14.1 16.6 21.5 21.7 22.9 25.4 29.7 27 28 FHLB loans 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 15.1 28 29 Security credit 7.2 8.0 8.4 8.7 9.6 12.7 16.2 13.2 14.2 15.3 19.4 16.0 29 30 Profit taxes payable .9 .9 .9 1.1 1.1 1.0 1.2 1.3 1.5 1.5 1.7 1.8 30 31 Miscellaneous liabilities 31.7 33.8 36.2 39.2 42.5 46.9 51.2 56.5 62.3 68.5 77.3 84.7 31 Savings and loan associations 1 Total financial assets 93.6 107.6 119.4 129.6 133.9 143.5 152.9 162.1 176.2 206.0 243.1 272.4 1 2 Demand deposits and currency 2.7 2.8 2.8 2.9 2.3 2.0 1.6 1.4 1.7 2.2 2.8 3.4 2 3 Credit market instruments 85.9 99.2 110.2 119.8 124.4 133.4 143.3 153.2 164.7 194.0 230.4 257.5 3 4 U.S. Government securities 6.0 7.0 7.6 8.2 8.6 10.1 10.9 11.1 12.3 17.5 21.8 22.8 4 5 Home mortgages 69.8 79.1 87.2 94.2 97.4 103.3 110.3 117.9 125.0 142.3 167.0 188.1 5 6 Other mortgages 9.0 11.9 14.2 16.1 17.0 18.5 20.5 22.3 25.4 32.0 39.1 44.1 6 7 Consumer credit 1.1 1.2 1.3 1.4 1.4 1.5 1.6 1.8 2.1 2.2 2.4 2.6 7 8 Miscellaneous assets 5.0 5.5 6.3 6.9 7.2 8.1 8.0 7.6 9.8 9.9 10.0 11.5 8 9 Total liabilities. 87.1 100.4 111.5 120.9 124.8 134.0 142.6 150.9 164.2 192.4 227.9 255.3 9 10 Savings shares 80.2 91.3 101.9 110.4 114.0 124.5 131.6 135.5 146.4 174.2 206.8 227.3 10 11 Credit market instruments 5.6 7.6 7.8 8.7 8.7 7.0 8.2 12.3 14.1 14.1 16.0 22.0 11 12 Mortgage loans in process 2.0 2.5 2.2 2.2 1.3 2.3 2.4 2.5 3.1 5.0 6.2 4.7 12 13 Bank loans n.e.c .2 .2 .3 .5 .5 .4 .5 .5 .4 1.1 1.8 2.1 13 14 FHLB advances 3.5 4.8 5.3 6.0 6.9 4.4 5.3 9.3 10.6 7.9 8.0 15.1 14 15 Profit taxes payable * . 1 . 1 .1 .1 .1 .1 .1 .1 .2 .2 .2 15 16 Miscellaneous liabilities 1.2 1.4 1.6 1.7 2.1 2.4 2.7 3.0 3.6 4.0 4.9 5.8 16 Mutual savings banks 1 Total financial assets 46.1 49.7 54.2 58.2 61.0 66.4 71.2 74.2 79.0 89.6 100.6 106.6 1 2 Demand deposits and currency .8 .8 .8 .8 .8 .8 .8 .9 I.O .9 1.0 1.2 2 3 Time deposits .2 . 1 .2 .2 .2 .2 .2 . 1 .3 .5 .6 .8 3 4 Corporate equities 1.0 1.2 1.3 1.4 1.5 1.7 1.9 2.2 2.5 3.0 3.6 4.0 4 5 Credit market instruments 43.6 47.0 51.2 54.9 57.6 62.6 66.9 69.8 73.5 83.4 93.1 98.2 5 6 U.S. Government securities 6.7 6.5 6.5 6.2 5.7 5.4 5.2 4.7 5.0 6.2 7.6 7.1 6 7 State and local obligations .5 .4 .4 .3 .3 .2 .2 .2 .2 .4 .9 .9 7 8 Corporate bonds 3.5 3.2 3.1 2.9 3.2 5.3 6.6 6.9 8.1 12.0 14.2 13.1 8 9 Home mortgages 22.1 24.7 27.4 30.1 31.7 33.5 35.0 36.4 37.3 38.6 41.7 44.2 9 10 Other mortgages 10.2 11.5 13.2 14.6 15.7 17.0 18.4 19.7 20.6 23.3 25.9 29.0 10 11 Consumer credit .3 .3 .4 .5 .6 .8 .9 1.0 1.1 1.2 1.5 1.7 11 12 Commercial paper .4 .3 .4 .3 .5 .4 .4 .5 .7 1.0 .7 .6 12 13 Security RP's .1 .3 .4 .7 .8 1.5 13 14 Miscellaneous assets .7 .7 .8 " ub '" ii 1.4 1.3 1.7 1.8 2.2 2.5 14 15 Savings deposits 41.3 44.6 48.8 52.4 55.0 60.1 64.5 67.1 71.6 81.4 91.6 96.3 15 16 Miscellaneous .8 .9 1.0 1.1 1.1 1.3 1.4 1.6 1.7 1.8 2.0 2.6 16 Credit unions J Total financial assets 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 24.6 1 2 Demand deposits and currency .4 .4 .5 .5 .6 .7 .7 .6 .8 .9 1.0 1.0 2 3 Savings and loan shares .4 .4 .5 .4 .1 .3 .1 * .1 .2 .4 ..44 3 4 Credit market instruments 5.6 6.3 7.2 8.2 9.4 10.2 11.5 13.1 14.6 17.2 20.3 2233..22 4 5 U.S. Government securities .2 .3 .3 .3 .5 .5 .5 .3 .8 1.6 2.4 2.6 5 6 Home mortgages .5 .5 .5 .6 .6 .7 .7 .7 .8 .8 1.0 1.0 6 7 Consumer credit 4.9 5.5 6.3 7.3 8.3 9.0 10.3 12.0 13.0 14.8 16.9 19.6 7 8 Credit union shares 6.3 7.2 8.2 9.2 10.0 11.2 12.3 13.7 15.4 18.3 21.7 24.6 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.26 FLOW OF FUNDS • OCTOBER 1974 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES-Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Life insurance companies 1 Total financial assets 129.2 136.9 144.9 154.1 161.7 172.1 182.9 190.9 200.5 214.7 232.5 244.6 1 2 Demand deposits and currency 1.5 1.5 1.5 1.5 1.5 1.6 1.7 1.6 1.8 1.8 2.0 2.1 2 3 Corporate shares 6.3 7.1 7.9 9.1 8.8 10.9 13.2 13.7 15.4 20.6 26.8 25.9 3 4 116.9 123.3 130.2 137.7 145.4 152.8 160.5 167.2 174.2 182.3 192.6 204.6 4 5 U.S. Government securities 6.2 5.9 5.6 5.1 4.7 4.5 4.4 4.1 4.2 4.0 4.3 4.4 5 6 State and local obligations 4.0 3.9 3.8 3.5 3.1 3.0 3.2 3.2 3.3 3.4 3.4 3.4 6 7 Corporate bonds 53.2 56.0 58.3 61.1 63.5 67.3 71.2 72.7 74.1 79.6 86.6 92.5 7 8 26.4 27.3 28.5 29.6 30.2 29.8 29.0 28.0 26.7 24.6 22.5 22.0 8 9 Other mortgages 20.5 23.2 26.6 30.4 34.4 37.8 40.9 44.1 47.7 50.9 54.9 59.2 9 10 .3 .4 .3 .3 .4 .5 .5 1.4 2.1 2.8 3.0 3.0 10 11 Policy loans 6.2 6.7 7.1 7.7 9.1 10.1 11.3 13.8 16.1 17.1 18.0 20.2 11 12 Miscellaneous assets 4.6 4.9 5.3 5.7 6.0 6.9 7.5 8.3 9.2 10.1 11.1 12.0 12 13 Total liabilities 120.3 126.8 134.0 141.9 149.9 159.0 168.1 177.5 187.7 201.0 216.3 231.5 13 14 Life insurance reserves 85.8 89.9 94.2 98.9 103.5 108.2 112.9 117.8 122.9 129.0 135.5 142.7 14 15 21.6 23.3 25.3 27.3 29.4 32.1 35.0 37.9 41.2 46.4 52.3 57.5 15 16 Profit taxes payable .4 .4 .6 .5 .6 .5 .6 .7 .8 .8 .8 .8 16 17 Miscellaneous liabilities 12.4 13.2 14.0 15.2 16.4 18.2 19.7 21.1 22.8 24.9 27.7 30.5 17 Private pension funds 1 Total financial assets 47.3 55.4 63.9 73.6 75.8 89.4 101.4 102.5 110.8 130.5 156.5 133.3 1 2 Demand deposits and currency .7 .8 .9 .9 .9 1.3 1.6 1.6 1.8 1.6 1.9 2.3 2 3 Corporate shares 21.9 27.7 33.5 40.7 39.5 51.1 61.4 61.6 67.2 88.6 114.9 89.2 3 4 Credit market instruments 23.0 25.2 27.5 29.6 32.2 33.0 34.0 34.6 37.0 35.4 34.9 36.8 4 5 U.S. Government securities 3.1 3.4 3.6 3.6 3.1 2.5 2.9 2.8 3.0 2.7 3.7 4.3 5 6 Corporate bonds 18.1 19.6 21.2 22.7 25.2 26.4 27.0 27.6 29.7 29.0 28.2 29.8 6 7 Home mortgages 1.9 2.2 2.7 3.3 3.9 4.1 4.1 4.2 4.3 3.7 3.0 2.7 7 8 Miscellaneous assets 1.7 1.7 2.0 2.3 3.2 4.0 4.4 4.7 4.7 4.8 4.9 4.9 8 State and local government employee retirement funds 1 Total financial assets 24.3 26.9 29.9 33.2 37.4 41.5 46.3 51.8 58.1 64.4 72.2 81.6 1 2 Demand deposits and currency .3 .3 .3 .3 .4 .5 .6 .5 .6 .7 .8 1.0 2 3 Corporate shares .8 1.0 1.3 1.6 2.1 2.8 4.1 5.9 8.0 11.2 14.7 18.6 3 4 Credit market instruments 23.2 25.6 28.3 31.3 34.9 38.3 41.6 45.5 59.5 52.5 56.8 62.1 4 5 U.S. Government securities 6.5 6.9 7.4 7.6 7.8 7.0 7.3 7.0 6.7 5.1 4.5 4.6 5 6 Short-term marketable .4 .4 .3 .3 .3 .5 .6 .8 .8 .5 .9 1.6 6 7 Other direct 5.7 6.1 6.7 6.9 6.8 5.7 5.4 4.6 4.3 3.4 2.5 1.6 7 8 Agency issues .4 .3 .4 .5 .7 .8 1.4 1.6 1.6 1.2 1.1 1.4 8 9 State and local obligations 3.8 3.3 2.9 2.6 2.5 2.4 2.4 2.3 2.0 2.1 2.0 1.4 9 10 Corporate bonds 10.7 12.8 14.9 17.2 20.2 23.9 26.6 30.2 33.9 38.1 43.4 49.4 10 11 Mortgages 2.2 2.6 3.1 3.7 4.5 5.0 5.4 6.0 6.8 7.1 6.8 6.7 11 Other insurance companies 1 Total financial assets 30.1 32.4 34.7 36.5 37.2 40.9 44.9 45.5 49.9 57.4 67.5 68.8 1 2 Demand deposits and currency 1.5 1.4 1.4 1.3 1.3 1.3 1.4 1.3 1.4 1.5 1.5 1.5 2 3 Corporate shares 8.6 10.0 11.4 12.0 11.0 13.0 14.6 13.3 13.2 16.6 21.8 19.6 3 4 Credit market instruments 17.8 18.6 19.4 20.5 22.0 23.5 25.4 27.0 30.9 34.6 38.3 41.1 4 5 U.S. Government securities 5.7 5.9 6.0 6.0 5.6 4.9 4.7 4.2 4.3 3.9 3.5 3.4 5 6 State and local obligations 9.9 10.6 11.0 11.3 12.6 14.1 15.1 16.3 17.8 21.7 26.5 30.4 6 7 Corporate bonds 2.1 2.0 2.4 3.0 3.6 4.3 5.5 6.3 8.6 8.9 8.1 7.2 7 8 Commercial mortgages .1 .1 .1 .1 .1 .2 .2 .2 .2 .2 .2 .2 8 9 Trade credit 2.2 2.3 2.5 2.6 2.9 3.2 3.5 3.9 4.4 4.7 5.8 6.5 9 10 Total liabilities 17.4 t 18.4 19.6 21.2 23.0 25.1 27.5 30.9 34.4 38.0 42.9 46.1 10 11 Profit taxes payable .1 .1 * .1 . 1 .1 .1 .1 .2 .2 .3 .3 11 12 Policy payables 17.2: 18.3 19.6 21.1 22.9 25.0 27.5 30.8 34.2 37.8 42.6 45.8 12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • FLOW OF FUNDS A 59.27 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Finance companies 1 Total financial assets 30.6 34.9 38.9 44.8 47.1 47.7 52.9 61.6 62.5 67.0 78.0 88.4 1 2 Demand deposits and currency 2.0 1.8 1.8 2.0 2.1 2.2 2.3 2.4 2.7 2.9 3.2 3.5 2 3 Home mortgages 2.7 3.5 3.9 4.5 3.9 4.3 4.9 5.7 5.9 7.0 11.1 12.5 3 4 Consumer credit 17.3 19.6 21.6 24.8 26.4 26.9 29.2 32.0 32.4 33.7 37.5 43.4 4 5 Other loans (to business) 8.6 10.0 11.6 13.5 14.6 14.3 16.5 21.5 21.6 23.3 26.1 29.0 5 6 Total liabilities 23.4 27.4 31.4 36.7 39.8 41.0 46.7 55.5 57.2 61.4 71.0 80.4 6 7 Corporate bonds 10.7 12.2 14.3 16.1 16.9 17.9 18.8 20.3 22.9 26.7 32.1 33.9 7 8 Bank loans n.e.c 7.6 9.2 9.7 11.8 10.7 8.8 11.1 13.5 12.3 12.3 16.4 20.5 8 9 Open-market paper 4.8 5.8 7.3 8.5 12.0 14.1 16.6 21.5 21.7 22.1 22.1 25.7 9 10 Profit taxes payable .3 .3 .2 .3 .2 .2 .2 .2 .3 .3 .3 .4 10 Real estate investment trusts 1 Physical assets .7 .9 1.4 2.5 3.2 1 2 Multifamily structures .2 .3 .4 .8 1.1 2 3 Nonresidential structures. .5 .6 .9 1.7 2.2 3 4 Total financial assets 1.3 3.8 6.4 11.4 17.0 4 5 Home mortgages .2 .7 1.4 2.8 4.1 5 6 Multifamily mortgages. .4 1.0 1.8 2.9 3.7 6 7 Commercial mortgages. .5 1.5 2.6 4.9 7.4 7 8 Miscellaneous assets... .2 .6 •6 .8 1.9 8 9 Totalliabilities .8 2.1 4.1 8.8 14.4 9 10 Credit market instruments. .8 2.1 4.1 8.8 14.4 10 11 Mortgages .4 .5 .7 1.2 1.5 11 12 Multifamily residential. .1 .2 .2 .4 .5 12 13 Commercial .3 .4 .5 .8 1.0 13 14 Corporate bonds... .1 .6 1.0 1.4 1.9 14 15 Bank loans n.e.c..., .3 .9 1.6 3.0 7.0 15 16 Open-market paper. .8 3.2 44..00 1166 Open-end investment companies 1 Total financial assets 21.3 25.2 29.1 35.2 34.8 44.7 52.7 48.3 47.6 56.7 59.8 46.5 1 2 Demand deposits and currency .3 .4 .4 .5 .5 .7 .8 .7 .7 .9 .9 1.2 2 3 Corporate shares 18.3 22.1 25.6 30.9 28.9 39.2 46.1 40.9 39.7 48.6 51.7 38.3 3 4 Credit market instruments 2.6 2.7 3.0 3.8 5.4 4.8 5.8 6.7 7.2 7.2 7.2 7.0 4 5 U.S. Government securities .7 .7 .8 .8 1.4 .9 .7 .9 .6 .7 1.2 5 6 Corporate bonds 1.6 1.8 2.1 2.6 2.9 3.0 3.'4 3.6 4.3 4.9 5.1 4.2 6 7 Open-market paper .3 .2 .1 .5 1.0 1.0 1.2 2.4 2.1 1.7 1.4 1.6 7 Security brokers and dealers 1 Total financial assets 8.6 9.4 9.9 10.4 11.3 14.8 18.5 15.4 16.3 17.6 21.9 18.4 1 2 Demand deposits and currency .6 .7 .7 .7 .8 1.0 1.5 1.4 1.1 1.1 1.1 1.1 2 3 Corporate shares .3 .6 .7 1.0 1.1 1.5 1.3 1.6 1.7 1.9 2.0 2.4 3 4 Credit market instruments 3.1 2.1 2.9 2.7 3.5 3.2 3.8 3.9 6.3 4.9 5.1 5.8 4 5 U.S. Government securities 2.0 .7 1.4 1.7 1.0 1.8 1.7 3.4 1.8 2.0 2.0 5 6 State and local obligations .5 .5 .7 !5 .5 .5 .5 .4 .9 1.0 .9 1.1 6 7 Corporate bonds .6 .8 .9 1.2 1.3 1.7 1.5 1.8 1.9 2.1 2.2 2.6 7 8 Security credit 4.6 6.1 5.6 6.0 6.0 9.2 12.0 8.5 7.2 9.7 13.6 9.1 8 9 Total liabilities 7.2 8.0 8.4 8.8 9.7 12.9 16.4 13.3 14.3 15.4 19.6 16.1 9 10 Security credit 7.2 8.0 8.4 8.7 9.6 12.7 16.2 13.2 14.2 15.3 19.4 16.0 10 11 From banks 5.2 5.3 5.5 5.3 5.8 6.6 7.7 6.7 8.6 9.3 13.1 10.3 11 12 From agencies of foreign banks .7 1.1 1.1 .8 .9 .9 .9 .9 .9 .9 .9 .5 12 13 Customer credit balances 1.3 1.6 1.8 2.7 2.9 5.3 7.7 5.7 4.7 5.2 5.4 5.2 13 14 Profit taxes payable * .1 .1 .1 .1 .2 .2 .1 .2 .1 .2 .2 14 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.28 FLOW OF FUNDS • OCTOBER 1974 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES-Continued (Amounts outstanding at end of year; in billions of dollars) Category 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Rest of the world 1 Total financial assets 71.7 78.4 84.4 88.0 89.6 98.0 107.9 115.6 125.2 153.5 184.4 200.8 1 2 Gold and SDK's 25.4 26.7 27.5 29.4 30.0 29.5 30.0 29.2 32.8 36.8 43.4 47.3 2 3 U.S. demand deposits 3.2 3.5 4.2 4.4 4.8 5.1 5.7 6.0 6.2 6.5 8.0 10.6 3 4 U.S. time deposits 3.4 4.3 5.4 6.0 6.3 7.6 7.3 8.4 6.7 7.2 9.9 12.8 4 5 U.S. corporate shares 10.3 12.5 13.8 14.6 12.6 15.5 19.6 18.1 18.7 21.4 27.8 24.8 5 6 Credit market instruments 14.4 15.0 15.9 15.9 14.3 16.1 16.1 14.9 25.7 52.4 61.1 61.5 6 7 U.S. Govt, securities 12.3 12.9 13.4 13.2 10.8 12.9 12.4 10.6 19.7 46.0 54.4 54.8 7 8 U.S. corporate bonds i .7 .7 .9 .7 1.3 .9 .9 .4 1.7 2.3 2.6 2.3 8 9 Acceptances 1.4 1.4 1.6 2.0 2.2 2.2 2.8 3.8 4.3 4.1 4.1 4.4 9 10 .1 .1 .1 .2 .2 .3 .6 .4 .3 .3 .4 .3 10 11 Trade credit .8 .8 .8 1.0 1.4 1.8 2.7 4.4 5.8 5.9 7.3 8.3 11 12 14.0 15.5 16.5 16.6 20.0 22.1 25.9 34.3 29.1 23.0 26.5 35.1 12 13 U.S. bank liabilities to foreign affiliates 3.7 4.0 4.6 4.7 7.6 8.3 10.6 18.6 11.6 7.6 8.5 9.6 13 14 Direct investment in U.S 7.6 7.9 8.4 8.8 9.1 9.9 10.8 11.8 13.3 13.7 14.3 17.7 14 15 Other 2.7 3.5 3.6 3.1 3.4 3.9 4.5 3.9 4.2 1.8 3.8 7.8 15 16 Total liabilities 75.7 82.0 93.9 101.4 107.2 116.2 126.1 134.9 143.2 155.9 170.7 194.2 16 17 U.S. official foreign exchange and net IMF position 1.2 1.2 1.2 1.6 1.6 2.8 4.8 5.1 2.6 .9 .7 .6 17 18 Credit market instruments 27.9 31.1 36.0 38.9 39.9 42.8 45.3 47.5 50.6 55.8 61.0 68.5 18 19 7.2 8.2 9.2 10.2 10.5 10.8 11.7 11.7 13.2 14.7 15.9 16.6 19 20 Bank loans n.e.c 4.1 4.7 6.7 7.2 7.1 6.8 6.3 6.1 5.7 7.3 10.2 13.0 20 21 16.7 18.2 20.2 21.5 22.3 25.3 27.3 29.7 31.7 33.8 34.9 38.9 21 22 Security debt .1 .1 .1 .1 .1 .3 .5 .3 .3 .3 .4 .2 22 23 Trade debt 2.2 2.2 2.8 2.7 3.0 3.5 3.9 5.2 6.2 6.7 7.2 9.0 23 24 Miscellaneous liabilities 44.3 47.3 53.7 58.1 62.5 66.8 71.5 76.8 83.6 92.3 101.4 115.8 24 25 U.S. Government equity in IBRD, etc 1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.7 1.9 2.2 2.5 2.8 25 26 Foreign currency held in U.S 4.2 4.5 4.8 4.3 4.0 4.1 4.6 4.2 4.7 6.1 9.5 14.3 26 27 U.S. direct investment abroad i 37.2 40.7 44.4 49.2 53.9 58.3 61.6 66.6 73.0 79.8 86.0 97.7 27 28 Other 1.8 1.0 3.3 3.3 3.2 3.0 3.8 4.2 4.0 4.1 3.6 1.0 28 1 Net of U.S. security issues in foreign markets to finance U.S. investment abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 59.29 International statistics start on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 U.S. BALANCE OF PAYMENTS • OCTOBER 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 III'^ IV IIP Merchandise trade balance i -2,722 -6,986 471 -363 578 1,210 -74 -1,631 Exports 42,754 48,768 70,277 16,679 18,152 20,216 22,299 24,089 Imports -45,476 -55,754 -69,806 -17,042 -17,574 -19,006 -22,373 -25,720 Military transactions, net -2,908 -3,604 -2,201 -763 -547 -58 -493 -636 Travel and transportation, net. -2,341 -3,055 -2,710 -781 -613 -630 -502 -612 Investment income, net 2 5,021 4,526 5,291 1,208 1,257 1,378 3,076 1,780 U.S. direct investments abroad 2 6,385 6,925 9,415 2,210 2,323 2,688 4,619 4,449 Other U.S. investments abroad 3,444 3,494 4,569 1,098 1,179 1,292 1,500 1,823 Foreign investments in the United States 2 . 4,809 -5,893 -8,693 -2,100 -2,245 -2,602 -3,043 -4,492 Other services, net 2 2,781 3,110 3,540 815 984 901 921 977 Balance on goods and services 3. -170 -6,009 4,391 116 1,659 2,801 2,928 -122 63 228 -195 3,865 4,029 12 Remittances, pensions, and other transfers -1,604 -1,624 -1,943 -461 -41 -412 -717 -390 13 Balance on goods, services, and remittances -1,774 -7,634 2,448 -295 1,247 2,084 2,538 - -4 5 0 8 1 3 14 U.S. Government grants (excluding military). -2,043 -2,173 -1,933 -187 -623 3,142 3,665 -1,395 15 Balance on current account -3,817 -9,807 515 -645 -485 -447 4-2,561 -1,978 --897420 -1,07716 2 21,,761377 41 ,0-8263 -1,838 16 U.S. Government capital flows excluding nonscheduled repayments, net 5 -2,111 -1,705 -2,938 -565 -608 -1,066 1,307 287 17 Nonscheduled repayments of U.S. Government assets 227 137 289 174 4 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies -478 238 1,111 485 206 204 36 101 19 Long-term private capital flows, net -4,381 -98 127 -315 1,529 -1,406 466 -1,150 20 U.S. direct investments abroad -4,943 -3,517 -4,872 -973 -710 -1,374 -627 -1,552 21 Foreign direct investments in the United States -115 383 2,537 588 886 712 1,281 1,516 22 Foreign securities -966 -654 -807 -124 -209 -525 -646 -357 23 U.S. securities other than Treasury issues 2,289 4,507 4,501 489 1,17: 670 687 397 24 Other, reported by U.S. banks -862 -1,158 -581 -239 227 -459 -26 880 25 Other, reported by U.S. nonbanking concerns 216 341 -200 -56 162 -430 -203 -274 26 Balance on current account and long-term capital ^... -10,559 -11,235 -896 -1,161 1,893 -631 1,786 -2,740 -1,184 224 1,109 2,163 -2,692 27 Nonliquid short-term private capital flows, net -2,347 -1,541 -4,276 -1,457 97 -1,253 -3,963 -5,468 28 Claims reported by U.S. banks -1,802 -1,457 -3,940 -1,399 222 -1,119 -2,790 -5,168 29 Claims reported by U.S. nonbanking concerns... -530 -305 -1,240 -59 -46C -664 -1,636 -460 30 Liabilities reported by U.S. nonbanking concerns -15 221 904 1 335 530 463 160 31 Allocations of Special Drawing Rights (SDR's) 717 710 32 Errors and omissions, net -9,776 -1,790 -2,624 ""908 -364 '925 •i;269 "i,'979 33 Net liquidity balance -21,965 -13,856 -7,796 f-1,710 -1,626 -959 -968 -6,229 [-2,038 611 -179 -158 -6,609 34 Liquid private capital flows, net -7,788 3,502 2,49: 1,997 316 3,620 2,030 1,700 35 Liquid claims -1,097 -1,247 -1,944 923 -521 -493 -2,600 -1,120 36 Reported by U.S. banks -566 -742 -1,103 966 -456 -All -2,239 -1,246 37 Reported by U.S. nonbanking concerns.. -531 -505 -841 -73 -65 -21 -361 126 38 Liquid liabilities— -6,691 4,749 4,436 1,074 837 4,113 4,630 2,820 39 Foreign commercial banks -6,908 3,716 2,978 723 699 3,229 4,616 1,977 40 International and regional organizations.. 682 104 376 31 -50 384 -585 292 41 Other foreigners -465 929 1,082 320 188 500 599 551 42 Official reserve transactions balance, financed by changes in—. -29,753 -10,354 -5,304 f 287 1,942 2,661 1,062 4,529 939 i 769 2,982 1,495 -4,104 43 Liquid liabilities to foreign official agencies 27,615 9,734 4,452 -1,488 Other readily marketable liabilities to foreign official agen- -730 -2,145 -573 4,262 44 cies 6 -551 399 1,118 Nonliquid liabilities to foreign official reserve agencies re- 259 -354 -277 182 45 ported by U.S. Govt 341 189 -475 167 -452 -147 U.S. official reserve assets, net 2,348 32 209 17 -13 -15 -210 -345483 46 Gold 866 547 47 SDR's -249 -703 9 " ' -29 48 Convertible currencies 381 35 233 -1 -85 49 Gold tranche position in IMF 1,350 153 -33 -13 -15 -209 -244 50 Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14) 3,204 4,189 2,772 833 758 487 393 543 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) 3,157 4,521 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21) 498 548 Balances excluding allocations of SDR's: Net liquidity -22,682 -14,566 -7,796 -2,038 611 -179 -158 -6,609 Official reserve transactions. -30,470 -11,064 -5,304 769 939 2,982 1,495 -4,104 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 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 8,370 3,913 4,726 6,011 9,502 -247 -530 +32 -1,132 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 +658 Quarter: 11,086 11,767 15,337 22,390 10,792 13,403 16,140 21,704 294 -1,657 -804 686 IlV.'.'.! 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 Year 3... 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) EE yy nn ee dd aa rr oo ff Total Tot G a o l2 l d st T o r c e k a 1 s ury v c fo e C u c r r r o i e t r e i e n i b s g n - l n e - pp RR oo II ee ss MM ss iinn ii ee tt FF ii rr oo vv nn ee SDR's3 E m n o d n t o h f TToottaall Tot G al o 2 l d s T to re c a k sury vv cc ffoo ee CC uu cc rr ii rr rr ee oo ee tt rr ii ss ee nn ii bb gg nn -- 44 ll nn ee -- pp RR oo ee II ss MM ss iinn ii ee tt FF ii rr oo vv nn ee SSDDRR''ss 33 1960... 19,359 17,804 1177,,776677 1,555 1973 1961... 18,753 16,947 1166,,888899 116 1,690 Sept... 12,927 10,487 10,410 8 483 1,949 1962... 17,220 16,057 1155,,997788 99 1,064 Oct... 8 14,367 8 11,652 8 11,567 8 8 541 8 2,166 1963... 16,843 15,596 1155,,551133 212 1,035 Nov... 14,373 11,652 11,567 8 547 2,166 1964... 16,672 15,471 1155,,338888 432 769 Dec.. 14,378 11,652 11,567 8 552 2,166 1965... 15,450 13,806 13,733 781 863 1974 1966... 14,882 13,235 13,159 1,321 326 Jan... 14,565 11,652 11,567 59 688 2,166 1967... 14,830 12,065 11,982 2,345 420 Feb... 14,643 11,652 11,567 68 757 2,166 1968... 15,710 10,892 10,367 3,528 1,290 Mar... 14,588 11,652 11,567 9 761 2,166 1969... 5 16,964 11,859 10,367 52,781 2,324 14,651 11,652 11,567 9 824 2,166 May." 14,870 11,652 11,567 66 989 2,163 1970... 14,487 11,072 10,732 629 1,935 851 June.. 14,946 11,652 11,567 94 1,005 2,195 1971 ... 612,167 10,206 10,132 6 276 585 1,100 July... 14,912 11,652 11,567 12 1,021 2,227 19727. . 13,151 10,487 10,410 241 465 1,958 Aug. . 15,460 11,652 11,567 224 1,384 2,200 19738 . . 14,378 11,652 11,567 8 552 2,166 Sept... 9 15,893 11,652 11,567 246 91,713 9 2,282 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 rnimon 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-11. 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 Sept. amounted to $2,318 million, reserve position in IMF $1,734 at time of revaluation. million, and total U.S. reserve assets $15,950 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 cormilitary 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 Conmierce, Bureau of Ecoproduct 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 • OCTOBER 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 AArreeaa aanndd ccoouunnttrryy 11996633 11996644 11996655 11996666 11996677 11996688 11996699 11997700 11997711 11997722 III IV I II Western Europe: Austria --8822 -----------5555555555555555555555 ----111100000000 --2255 44 Belgium -----------4444444444400000000000 ----88883333 ---555888 ---111111000 France --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333332222255555 --112299 ---444777333 Germany, Fed. Rep. of. . . -----------222222222222222222222255555555555 555550000000000 Ireland -----------11111111111 -------2222222 ---222 ---222 ----55552222 4444411111 22 Italy 222222222220000000000000000000000 -------88888880000000 ---666000 ---888555 ----222200009999 -----7777766666 Netherlands -----------6666666666600000000000 -------33333335555555 ----11119999 ----55550000 --2255 Spain --113300 -----------3333333333322222222222 -------111111188888880000000 55551111 Switzerland -----------8888888888811111111111 -------55555550000000 ---222 ---333000 ---555000 --2255 ----55550000 --117755 United Kingdom 332299 666666666661111111111188888888888 111111155555550000000 888000 ---888777999 ---888333555 Bank for Intl. Settlements 222000000 Other 11 --66 --3355 --4499 1166 --4477 111111 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 Canada 222222000000000000 111115555500000 5555500000 Latin American republics: Argentina ---333000 ------333333999999 -----2222255555***** --2255 ----22228888 Brazil 777222 555444 2222255555 ------333333 ----22223333 Colombia 111000 2222299999 777777 «« ----1111 Venezuela -----2222255555 Other --1111 --99 -----1111133333 --66 1111 --4400 --2299 --8800 --55 TToottaall 3322 5566 111777 -----4444411111 999 ---666555 --5544 --113311 --55 Asia: Iraq ---111000 -----44444 ---222111 ---444222 Japan -----5555566666 --111199 Lebanon --1111 -----1111111111 --11 -------99999995555555 ----33335555 Malavsia . -------33333334444444 ----11110000 Philippines 2255 2200 ** 9999999 4400 --44 ----2222 -------55555550000000 Sinsanore -------88888881111111 111111 ---333000 Other --1133 --66 --1144 --1144 --2222 -------77777775555555 ---999 22--9911 333999 --33 TToottaall 111222 333 ---222444 ---888666 ---444444 ---333666666 444222 ---222111333 ---333888 --33 All other ---333666 ---777 ---111666 ---222222 333---111666666 333---666888 ---111 ---888111 ---666 TToottaall ffoorreeiiggnn ccoouunnttrriieess --339922 --3366 ----1111,,,,333322222222 ----666600008888 ----1111,,,,000033331111 ----1111,,,,111111118888 999955557777 ----666633331111 ----888844445555 ----3333 Intl. Monetary Fund^,...... 5555----222222225555 111177777777 22222222 ----3333 11110000 ----111155556666 ----22222222 ----555544444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ----1111,,,,000000009999 ----1111,,,,111122221111 999966667777 6666----777788887777 ----888866667777 ----555544447777 1 Includes purchase from Denmark of $25 million. repurchase; proceeds from these sales invested by IMF in U.S. Treasury 2 Includes purchase from Kuwait of $25 million. securities. IMF repurchased $400 million in Sept. 1970 and the remaining 3 Includes sales to Algeria of $150 million in 1967 and $50 million in $400 million in Feb. 1972. 1968. 3 Payment to the IMF of$259 million increase in U.S. gold subscription 4 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. U.S. payment of increases in its gold subscription to IMF, gold deposits 6 Includes the U.S. payment of $385 million increase in its gold subby the IMF (see note I (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

OCTOBER 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 institutions 2 LLLLiiiiqqqquuuuiiiidddd LLiiqquuiidd lliiaabbiilliittiieess ttoo LLLLiiiiqqqquuuuiiiidddd lllliiiiaaaabbbbiiiilllliiii---- ootthheerr ffoorreeiiggnneerrss lllliiiiaaaabbbbiiiilllliiii---ttttiiiieeeessss ttttoooo Liquid ttttiiiieeeessss ttttoooo p E e o r n i f d o d Total aaaa I f I f I f I f rrrr gggg rrrr MMMM iiiissss oooo oooo iiii FFFF mmmm llll nnnn dddd gggg S t h e o rm rt - Market- N k o e n ta m b a le r - NN nn vv kk oo oo ee ee nn nn rr ttaa tt mm cc ii bb bb oo aa ll ll nn ee ee rr -- -- rr OO eeaa tthh dd ee iill rr yy tttooo LLL llliii aaa iii ttt qqq ccc iii bbb eee ooo uuu iii sss mmm lll iii iii ddd --- --- S t h e o rm rt - Market- mmmm nnnn ^^^^ oooo SSSS oooo nnnn tttt nnnn eeee hhhh ---- ---ttttrrrraaaannnnssss---- TToottaall liabili- able con- UU..SS.. mmaarrkkeett-- mmmeeerrrccciiiaaalll liabili- able aaaannnndddd rrrreeee---aaaaccccttttiiiioooonnnnssss!!!! ties re- U.S. vertible TTrreeaass.. aabbllee bbbaaannnkkksss Total ties re- U.S. ggggiiiioooonnnnaaaallll ported Treas. U.S. bboonnddss lliiaabbiillii-- aaabbbrrroooaaaddd®®® ported Treas. oooorrrrggggaaaannnniiii---by bonds Treas. aanndd ttiieess 55 by bonds zzzzaaaattttiiiioooonnnnssss 8888 banks and bonds nnootteess 44 banks and in notes 3 and in notes3'7 U.S. notes U.S. 1962 . 24,268 800 1122,,991144 1111,,996633 751 200 55,,334466 3,013 22,,556655 448 22,,119955 1963 9., / \ 2 2 6 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 11 1 44 4 ,, , 44 4 55 2 99 5 11 1 22 2 ,, , 44 4 66 6 77 7 1 1, , 1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 55 5 ,, , 88 8 11 1 77 7 3 3, , 3 3 8 9 7 7 33 3 ,, , 00 0 44 4 66 6 3 3 5 4 1 1 11 1, ,, 9 99 6 66 5 00 1964 9. / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , ,7 7 8 9 6 0 1 1 3 3 , , 2 2 2 2 4 0 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 2 2 0 0 4 4 1 1 5 5 8 8 7 7, , 3 2 0 7 3 1 3 3 , ,7 7 5 3 3 0 3 3 , ,3 3 7 5 7 4 3 3 7 7 6 6 1 1 , , 7 7 2 2 2 2 1965... 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 /3I,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 /35,819 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 /38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 609 725 1968 9. \38,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 465 722 1969 9 10 \ / 4 4 5 5 , , 9 7 1 5 4 5 1 1 , , 0 0 1 1 9 9 10 1 1 5 5 , , 9 9 9 7 8 5 1 11 1 , , 0 0 7 5 7 4 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 , , 5 5 0 0 5 5 2 2 3 3 , ,6 6 3 4 8 5 4 4 , , 5 4 8 6 9 4 4 3 , , 0 93 6 9 4 5 5 2 2 5 5 6 66 5 3 9 f47,009 566 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. 11 \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., 82,853 61,526 40,000 5,236 12,108 3,639 543 14,665 5,035 4,610 425 1,627 Aug.'' 92,483 70,520 45,721 6,906 12,319 3,555 2,019 15,083 5,348 5,013 335 1,532 Sept. 91,930 69,777 45,174 6,914 12,319 3,355 2,015 15,031 5,503 5,156 347 1,619 Oct.^ 93,017 69,702 45,212 6,929 12,319 3,233 2,009 15,958 5,536 5,162 374 1,821 Nov.*" 92,393 67,400 43,791 6,207 12,319 3,234 1,849 17,261 5,722 5,312 410 2,010 Dec.*^ 92,371 66,810 43,919 5,701 12,319 3,210 1,661 17,647 5,911 5,481 430 2,003 1974—Jan. . 89,876 63,871 41,556 5,229 12,321 3,210 1,555 18,040 6,044 5,595 449 1,921 Feb.^. 91,807 64,099 41,991 5,192 12,322 3,210 1,384 19,692 6,223 5,813 410 1,793 Mar... 95,517 65,527 43,412 5,192 12,329 3,210 1,384 22,028 6,544 6,144 400 1,418 97,306 67,163 45,184 5,020 12,330 3,210 1,419 22,060 6,789 6,369 420 1,294 May.V 100,641 67,959 46,031 5,013 12,330 3,210 1,430 24,200 6,880 6,510 370 1,547 Junef.. 103,561 69,993 47,429 5,013 12,330 3,655 1,566 24,712 7,146 6,780 366 1,710 Julyf.. 106,926 71,071 48,427 5,013 12,330 3,655 1,646 26,547 7,503 7,122 381 1,804 Aug.P. 109,545 70,808 48,238 4,940 12,330 3,655 1,645 29,189 7,520 7,150 370 2,028 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. « Includes short-term liabilities payable in dollars to commercial banks NOTE.—Based on Treasury Dept. data and on data reported to the abroad and short-term liabilities payable in foreign currencies to commer- Treasury Dept. by banks and brokers in the United States. Data correspond cial banks abroad and to "other foreigners." generally to statistics following in this section, except for the exclusion 7 Includes marketable U.S. Treasury bonds and notes held by commer- of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign cial banks abroad. official nonreserve agencies, the inclusion of investments by foreign 8 Principally the International Bank for Reconstruction and Develop- official reserve agencies in debt securities of U.S. Federally-sponsored ment and the Inter-American and Asian Development Banks. agencies and U.S. corporations, and minor rounding differences. Table 9 Data on the two lines shown for this date differ because of changes excludes IMF "holdings of dollars," and holdings of U.S. Treasury letters in reporting coverage. Figures on first line are comparable with those of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 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 e n s E W u e ro s p te e r n i Canada A re m L p e a u r b t i i l n c ic a s n Asia Africa cou O n t t h r e ie r s 2 1967... 18,194 10,321 1,310 1,582 4,428 250 303 1968 3. 17,407 8,070 1,867 1,865 5,043 259 303 17,340 8,062 1,866 1,865 4,997 248 302 1969 3. 15,975 4 7,074 1,624 1,888 4,552 546 291 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3. 23,786 13,620 2,951 1,681 4,713 407 414 23,775 13,615 2,951 1,681 4,708 407 413 1971 5. 51,209 30,010 3,980 1,414 14,519 415 871 \50,651 30,134 3,980 1.429 13,823 415 870 1972 61.526 34,197 4,279 1,733 17,577 777 2,963 1973—Aug.. 70,520 47,260 3,836 2,015 13,637 738 3,034 Sept.. 69,777 47,099 3,759 1,861 13,289 769 3,000 Oct.. 69,702 47,514 3,851 1,938 12,601 735 3,063 Nov.. 67,400 46,002 3,820 2,233 11,474 785 3,086 Dec.. 66,810 45,717 3,853 2,544 10,884 788 3,024 1974—Jan... >•63,871 >•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 June.. 69,993 43,200 4,201 4,005 13,992 1,854 2,741 Julyf. 71,071 42,978 4,125 3,951 15,209 2,055 2,753 Aug^. 70,808 42,131 3,953 4,126 15,526 2,272 2,800 1 Includes Bank for International Settlements and European Fund. to official institutions of foreign countries have been increased in value by ^ 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 nonaccounts previously classified as "Official institutions" are included in marketable notes issued to foreign official nonreserve agencies; and in- "Banks"; a number of reporting banks are included in the series for vestments by foreign official reserve agencies in debt securities of U.S. the first time; and U.S. Treasury liabilities payable in foreign currencies Federally-sponsored agencies and U.S. corporations. 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners T a o n n d o r n e m gi o o n n e a t l a o ry r ga in n t i e z r a n t a io t n io s n 6 a l Payable in dollars IMF Dep<o sits End of period Total 1 Total Dem D an e d p os T it i s m e 2 b T i c r c ll e U e s a a r . t t e S s i a . s f u i n - r 3 y d s O l t i h a e t o h b rm r e . t 4 r - P f r o e a c n r y i u e n c a r i i b g - e l n s e in m v g e e o s n ld t t - s Total Demand Time2 b T i c r l c l e U e s a a r . t t S s e i a f u . s i n - r y d O s l t i e h a th r o b m e r .4 t r - 1969 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707 4 4 1 1 , , 7 7 1 6 9 1 4 41 1 , , 3 3 9 5 3 1 1 1 5 5 , , 7 7 8 9 5 5 5 5 , , 9 9 2 6 4 1 1 1 4 4 , , 1 1 2 2 3 3 5 5 , , 5 5 1 1 9 4 3 3 6 6 8 8 4 40 0 0 0 8 8 2 2 0 0 6 6 9 9 1 1 5 5 9 9 2 21 1 1 1 3 3 8 8 1 1 55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 1971 8 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 1972—Dec. >• 60,689 60,193 8,288 5,596 31,850 14,458 496 1,413 86 202 326 800 1973—Aug. >• 67,303 66,693 8,436 6,040 34,257 17,960 611 1,487 178 118 61 1,129 Sept. >• 66,914 66,253 8,754 5,987 33,702 17,610 660 1,552 80 100 62 1,311 Oct.'- 68,100 67,523 9,108 6,614 32,869 18,932 577 1,768 70 93 173 1,431 Nov. 68,326 67,704 9,849 6,696 31,97-/ 19,182 622 1,962 73 97 373 1,420 Dec.>' 69,002 68,405 11,307 6,849 31,8h6 18,363 597 1,955 101 86 296 1,471 1974—Jan.'- 67,043 66,403 10,822 6,792 29,543 19,246 640 1,853 95 92 286 1,380 Feb.'- 69,189 68.420 11,473 6,838 30,274 19,438 770 1,693 77 66 232 1,318 Mar.'- 72,735 71,969 11,651 6,967 31,444 21,907 766 1,151 96 66 227 762 Apr.>- 74,722 74,016 11,973 7,302 32,676 22,064 706 1,109 60 60 209 780 May 78,074 77.421 11,671 7,603 33,983 24,163 653 1,333 95 54 46 1,138 June 80,514 79,722 12,856 8,244 23,038 24,583 792 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 1,488 Aug. 86,432 85,687 11,805 9,106 33.179 31,597 746 1,855 81 68 146 1,561 For notes see the following page. 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OCTOBER 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 institutions 9 Payable in dollars Payable in dollars PPPaaayyyaaabbbllleee EEEEnnnndddd ooooffff ppppeeeerrrriiiioooodddd TTToootttaaalll Dema D n e d p osi T ts i me 2 TT bb cc rr ii cc ll ee UU ee ll aa ss aa rr tt .. ee tt ss SS ii aa ss ff uu .. ii nn -- rr 33 dd yy ss OO ll tt ii hh aa ee tt oo hh bb rrmm rr ee .. tt 44 rr -- fff rrr ooo eee ccc rrr nnn iii uuu eee nnn ccc rrr iii iii ggg --- eee nnn sss TTToootttaaalll Dema D n e d p osi T ts i me2 TT bbii rr cc cc ll ee UU ll aa ee ss aa tt .. rr ee SS ss tt aa ii ss uu ff .. nn ii rr -- 33 dd yy ss OO t l t l hh ii ee aa tt oo hh rr bb mm rr ee ,, tt 44 -- rr ccc PPP uuu fff rrr aaa ooo rrr yyy eee rrr iii eee aaa nnn nnn bbb iii ccc ggg lll iii eee nnn eee sss 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 53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 158 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972—Dec.'- 59,275 8,203 5,394 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 1973_Aug.'- 65,817 8,258 5,922 34,196 16,831 611 45.721 1,576 3,355 34,118 6,545 127 Sept.'- 65,361 8,674 5,887 33,640 16,499 660 45;174 1,633 3,226 33,554 6,634 127 Oct.'- 66,332 9,038 6,520 32,696 17,501 577 45,212 1,811 3,846 32,613 6,814 127 Nov.'- 66,364 9,776 6,599 31,604 17,763 622 43,791 2,035 3,802 31,529 6,298 127 Dec. 67,047 11,206 6,763 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 127 1974_Jan.'- 65,191 10,728 6,701 29,257 17,865 640 41,556 2,379 3,705 29,152 6,192 127 Feb.»- 67,496 11,396 6,773 30,042 18,516 770 41,991 2,407 3,703 29,917 5,836 127 Mar. 71,584 11,554 6,902 31,217 21,145 766 43,412 2,631 3,800 31,064 5,790 127 Apr.'- 73,613 11,913 7,242 32,467 21,284 706 45,184 2,920 3,949 32,312 5,877 127 May'- 76,741 11,576 7,550 33,937 23,025 653 46,031 2,352 4,025 33,731 5,796 127 June 78,921 12,750 8,181 33,947 23,251 792 47,429 2,642 4,277 33,745 6,638 127 July?' 82.096 12,642 8,760 34,128 25,900 666 48,427 2,561 4,468 33,749 7,522 127 Aug.f 84;577 11,724 9,039 33,033 30,036 746 48,238 2,472 4,447 32,687 8,504 127 To banks10 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Dema D n e d p osi T ts i me 2 T b c r il c e U e ls a a r . t t s S e a i u f s . n i - r d y s O l t i h e a t o h b rm r e .4 t r - Total Dema D n e d p osi T ts i me 2 T b c r il c e U e ls a a r . t t S s e a if u s . n i - r d y s O l t i h a e t o h b rm r e . t 4 r - f r o e c r n u e c r i i g - e n s 1969 27.709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 19707 21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 19718 14,643 10,721 3,399 320 6,995 3,694 1,660 1,666 96 271 228 1972—Dec.'- 19,275 14,340 4,658 405 9,272 4,610 1,954 2,110 65 481 325 I973_Aug.'- 20,095 14,599 4,806 358 10 9,425 5,013 1,876 2,209 68 861 483 Sept.'^ 20,187 14,498 5,070 436 8,984 5,156 1,972 2,226 77 881 533 Oct. 21,120 15,509 5,250 479 9,774 5,162 1,977 2,196 76 912 449 Nov.'- 22,574 16,766 5,734 474 10,550 5,313 2,007 2,323 67 915 495 Dec.'^ 23,127 17,178 6,941 515 11 9,710 5,481 2,140 2,336 68 936 469 1974—Jan.'' 23,635 17,527 6,329 517 14 10,668 5,595 2,020 2,479 91 1,005 513 Feb. •• 25,505 19,050 6,857 526 32 11,635 5,813 2,131 2,543 93 1,045 642 Mar. '• 28,172 21,389 6,572 511 54 14,251 6,144 2,351 2.591 98 1,104 639 Apr.'- 28,429 21,481 6,601 683 63 14,133 6,369 2,392 2,610 92 1,274 579 May »• 30.710 23,674 6,913 795 82 15,884 6,511 2,312 2,730 124 1,345 526 June- 31,491 24,047 7,692 1.002 95 15,259 6,779 2,415 2,902 107 1,355 665 JulyP 33,669 26,008 7,649 1,160 204 16,996 7,122 2,432 3,133 175 1,383 539 Aug.2' 36,339 28,571 6,860 1,436 197 20,077 7,150 2,392 3,156 148 1,455 618 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 through 1971 (first line). 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 Development 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. • OCTOBER 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.'^ Nov. Dec. Jan.'- Feb.'- Mar.'- Apr.'- May JunC" July^ Aug.f Europe: Austria 272 166 161 210 279 327 248 298 310 482 528 Belgium-Luxembourg., 1,094 1,463 1,483 1,593 1,662 1,572 1,795 1,739 1,827 1,819 1,928 Denmark 284 527 659 527 456 380 358 261 266 239 251 Finland 163 136 165 178 160 169 140 143 174 203 229 France 4,441 3,415 3,483 3,241 2,967 2,852 2,767 3,018 3,425 3,763 3,611 Germany 5,346 14,227 13,227 12,307 12,357 12,275 13,035 13,778 13,528 12,602 11,873 Greece 238 236 389 262 238 343 285 239 232 222 298 Italy 1,338 1,224 1,404 1,195 1,119 2,243 1,386 1,435 1,281 1,327 1,101 Netherlands 1,468 2,866 2,886 2,522 2,502 2,547 2,507 2,407 2,352 2,232 2,225 Norway 978 980 965 961 962 993 923 923 911 878 894 Portugal 416 470 534 482 486 450 450 452 411 429 422 Spain 256 319 305 264 304 267 289 365 471 548 303 Sweden 1,184 1,807 1,885 1,975 1,973 1,733 1,475 1,350 1,211 1,160 1,049 Switzerland 2,857 3,091 3,377 3,281 3,513 3,792 4,228 5,137 6,383 7,208 7,821 Turkey 97 75 98 221 146 96 92 95 125 134 106 United Kingdom 5,011 6,473 6,148 6,440 6,186 7,392 7,697 8,792 8,533 8,294 8,970 Yugoslavia 117 76 86 77 94 78 82 86 100 106 100 Other Western Europe i. 1,483 2,926 3,352 3,125 3,007 2,946 3,003 2,494 2,701 2,847 2,671 U.S.S.R 11 20 22 26 20 29 52 28 27 27 26 Other Eastern Europe... 81 101 110 92 96 122 95 104 126 138 147 Total. 27,136 40,598 40,742 38,982 38,525 40,605 40,905 43,145 44,247 44,657 44,552 Canada 3,432 3,779 3,627 3,923 4,217 3,640 4,350 3,983 3,550 3,721 3,250 Latin America: Argentina 631 766 914 847 895 1,001 1,058 1,180 1,365 1,238 1,175 Bahamas 2 540 806 824 593 1,011 2,016 1,335 1,833 1,348 1,392 3,203 Brazil 605 816 860 819 961 837 774 731 782 790 817 Chile 137 142 157 178 174 185 224 191 238 263 251 Colombia 210 221 247 219 238 238 227 227 217 267 290 Cuba 6 6 7 7 8 7 6 6 6 7 6 Mexico 831 1,132 1,284 1,323 1,343 1,369 1,374 1,416 1,410 1,448 1,599 Panama 167 282 279 281 326 401 408 551 552 558 448 Peru 225 124 135 144 154 159 160 162 166 197 184 Uruguay 140 112 120 120 115 121 121 132 121 122 115 Venezuela 1,078 1,420 1,468 1,460 1,636 1,736 2,297 2,248 2,708 2,599 2,999 Other Latin American republics... 860 769 880 947 1,026 1,100 1,144 1,053 1,073 1,192 1,072 Netherlands Antilles and Surinam. 86 63 71 69 61 69 63 95 124 92 103 Other Latin America 44 556 359 470 792 659 566 424 450 666 825 Total. 5,560 7,215 7,606 7,477 8,741 9,896 9,757 10,249 10,561 10,831 13,088 Asia: China, People's Rep. of (China Mainland) 39 40 38 38 39 38 39 39 33 39 40 China, Republic of (Taiwan) 675 764 757 735 715 641 573 620 688 772 842 Hong Kong 318 383 372 389 416 452 453 512 462 470 490 India 98 71 85 152 183 133 177 264 225 172 131 Indonesia 108 160 133 186 175 240 305 220 257 863 785 Israel 177 330 327 337 311 302 275 267 256 226 211 Japan 15,843 6,726 6,954 6,417 7,440 8,307 8,668 9,060 9,419 9,973 9,897 Korea 192 210 195 222 204 180 253 234 262 215 277 Philippines 438 497 515 570 604 595 642 731 772 762 715 T O h th a e il r a nd 1,0 1 7 7 1 1 1,1 1 3 8 8 0 1,2 2 0 47 2 1,3 3 0 3 6 6 1,1 4 9 7 6 1 1,4 6 4 0 5 7 1,9 5 4 3 2 6 1,8 5 8 1 6 7 2,5 5 7 2 2 4 3,6 4 3 5 4 1 4,2 4 7 0 2 3 Total. 19,131 10,500 10,826 10,690 11,752 12,940 13,861 14,350 15,470 17,578 18,065 Africa: 24 63 35 72 72 52 68 71 84 91 105 Morocco.'.... 12 14 11 11 12 17 15 20 39 54 63 South Africa. 115 109 114 97 119 148 83 122 102 170 156 Zaire 21 24 87 42 30 42 43 52 58 46 46 Other 768 824 837 1,044 1,335 1,500 1,703 1,911 2,042 2,258 Total. 939 1,034 1,056 1,059 1,277 1,593 1,709 1,968 2,193 2,403 2,627 Other countries: Australia 3,027 3,183 3,131 2,986 2,917 2,849 2,979 2,980 2,831 2,848 2,927 All other 51 55 59 74 66 60 52 68 69 58 68 Total 3,077 3,238 3,190 3,059 2,984 2,909 3,031 3,047 2,900 2,906 2,994 Total foreign countries. 59,275 66,364 67,047 65,191 67,496 71,584 73,613 76,741 78,921 82,096 84,577 International and regional: International 3 951 1,609 1,627 1,536 1,404 863 840 1,038 1,250 1,328 1,512 Latin American regional.. 307 291 272 257 228 226 217 226 222 248 251 Other regional 156 62 57 61 61 62 51 69 122 102 93 Total 1,413 1,962 1,955 1,853 1,693 1,151 1,109 1,333 1,593 1,679 1,855 Grand Total. 60,689 68,326 69,002 67,043 69,189 72,735 74,722 78,074 80,514 83,775 86,432 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 ^ 1972 1973 1974 1972 1973 1974 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus 2 3 9 19 10 Kuwait 16 39 36 28 Iceland 9 9 12 8 11 Laos 3 2 3 3 Ireland, Rep. of 15 17 22 62 53 Lebanon 60 55 55 62 68 Malaysia 25 54 59 58 40 Other Latin American republics: Pakistan 58 59 93 105 108 Bolivia 53 87 65 68 102 Ryukyu Islands (incl. Okinawa) 6 53 Costa Rica 70 92 75 86 88 Saudi Arabia 80 344 236 334 303 Dominican Republic 91 114 104 118 137 Singapore 45 77 53 141 165 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 Vietnam 185 135 98 88 98 Haiti 23 27 25 21 28 Honduras 50 58 64 56 71 Jamaica 32 41 32 39 52 Other Africa: Nicaragua 66 61 79 99 119 Algeria 31 32 51 111 110 Paraguay 17 22 26 29 40 Ethiopia (incl. Eritrea) 29 57 75 79 118 Trinidad & Tobago 15 20 17 17 21 Ghana 11 10 28 20 22 Kenya 14 23 19 23 20 Other Latin America: Liberia 25 30 31 42 29 Bermuda (2) 127 242 201 Libya 296 393 312 331 British West Indies 36 100 109 Nigeria 56 85 140 78 Southern Rhodesia 2 2 1 2 1 Other Asia: Sudan 5 3 3 3 2 Afghanistan 17 25 19 22 11 Tanzania 6 11 16 12 12 Bahrain 18 24 23 24 11 Tunisia 7 10 11 7 17 Burma 5 2 17 12 Uganda 10 7 19 6 11 Cambodia 2 3 3 2 4 Zambia 7 28 37 22 Iran 88 93 114 124 243 Iraq 9 10 26 101 All other: Jordan 2 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 TToo iinnttll.. EEnndd ooff ppeerriioodd TToottaall aanndd Official Other Ger- United Other Total Other All rreeggiioonnaall Total institu- Banks 1 foreign- many King- Europe Latin Japan Asia other tions ers dom America countries 1970 1,703 789 914 695 165 53 110 42 26 152 385 137 62 1971 902 446 457 144 257 56 164 52 30 111 3 87 9 19722 (1,000 562 439 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-_Aug 1,530 775 755 322 305 127 165 68 265 143 2 95 17 Sept 1,502 758 744 318 302 123 165 68 263 145 2 84 18 Oct 1,473 735 738 312 305 122 165 68 265 140 2 81 18 Nov 1,469 753 717 313 287 117 165 67 246 138 2 80 19 Dec 1,467 761 706 310 296 100 165 66 245 132 5 78 16 1974—Jan 1,496 821 675 310 275 90 165 65 236 119 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 1,660 1,005 655 296 285 74 165 56 220 147 2 52 13 June 1,653 974 679 321 285 73 165 56 220 146 2 77 12 JuIyP 1,677 984 693 319 299 75 171 56 233 142 2 77 13 Aug.^' 1,508 997 511 118 316 77 170 60 47 142 1 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 m 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. • OCTOBER 1974 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 1 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyf Aug.^' Europe: Belgium-Luxembourg.... 6 7 7 7 7 7 7 7 7 7 7 9 9 Sweden 135 165 165 165 235 235 260 260 260 260 260 260 260 Switzerland 37 37 37 38 34 33 32 34 33 35 34 35 34 United Kingdom 236 247 290 400 423 437 450 439 460 470 427 430 443 Other Western Europe... 85 85 85 85 86 91 91 90 89 87 89 97 101 Eastern Europe 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 504 546 588 700 789 808 845 835 854 826 822 836 852 Canada 560 560 560 567 582 597 832 847 848 849 849 851 756 Latin America: Latin American republics. 8 9 9 11 11 11 11 11 11 11 11 11 11 Other Latin America 3 3 3 3 3 3 3 3 3 5 5 5 5 Total 11 12 12 14 14 14 14 14 14 16 16 16 16 Asia: Japan 5,949 5,950 5,950 5,143 4,552 4,066 3,718 33,,770033 3,531 3,499 3,498 3,497 3,498 Other Asia 9 11 11 11 11 11 11 11 12 12 12 12 Total 5,959 5,961 5,961 5,154 4,563 4,077 3,729 3,714 3,542 3,510 3,510 3,509 3,510 Africa 183 158 158 158 158 158 157 157 157 157 157 156 151 All other 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 7,241 7,261 7,303 6,617 6,131 5,678 5,602 5,592 5,440 5,383 5,379 5,394 5,310 International and regional: International 1 21 6 1 1 20 51 217 141 174 57 51 102 45 45 47 47 48 49 49 49 44 41 60 75 71 Latin American regional. 46 66 53 48 49 69 100 267 185 214 117 126 173 Total 7,287 7,327 7,356 6,665 6,179 5,747 5,702 5,859 5,625 5,597 5,496 5,520 5,483 Grand total 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 End of period Total Total Total O in t f i s o f t i n c it s i u a - l Banks 1 Others C s t o o t i i a o n u ll n n g e t d - s c - - f A e o o a m c i r f g n c a a n f c e d o e c e p e r c r s - t s t - . Other Total w D e i e i t g h p n o e f s o r i s t r s - g c F a n o u c p o n a o a r v r i d n t e p m t , i c i e e s f g l e . i r s e - n , - Other 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2 4 1 3 3 , , 1 2 7 7 0 2 1 1 2 2 , , 3 3 7 2 7 8 4 3 , , 5 9 0 6 3 9 2 2 2 3 3 1 2 2, , 6 0 1 8 3 0 1 1 , , 6 6 5 6 8 7 2 2, , 4 4 7 7 5 5 4 4 , , 2 2 4 5 3 4 1 1 , , 6 1 7 0 9 7 8 89 4 5 2 5 5 4 4 8 9 1 17 1 3 9 1 1 7 7 4 4 1972 3 1 1 5 5 , ,4 6 7 7 1 6 . 1 1 4 4, , 6 8 2 3 5 0 5 5 , , 6 6 7 7 4 1 1 1 6 6 3 3 2 2 , , 9 9 7 7 5 0 2 2 , , 5 53 3 5 8 3 3 , , 2 2 6 7 9 6 3 3 , , 2 2 2 0 6 4 2 2 , , 6 47 5 8 7 8 8 4 4 6 6 4 4 4 4 1 1 2 2 2 2 3 3 1 1 8 8 2 2 1973—Au g 18,980 18,094 6,971 176 4,028 2,767 3,948 3,716 3,458 887 488 151 248 Sept 18,727 17,950 6,807 160 3,918 2,729 4,070 3,718 3,355 777 459 143 175 Oct 19,300 18,440 6,979 216 3,988 2,775 4,099 3,774 3,588 861 510 187 163 Nov.. 19,590 18,799 7,068 252 4,084 2,732 4,287 3,788 3,655 790 512 131 148 Dec 20,721 20,059 7,717 271 4,589 2,857 4,306 4,155 3,881 662 428 119 115 1974—Ja n 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 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 May 29,624 28,741 9,960 363 6,384 3,213 5,080 6,486 7,214 884 611 113 160 JuneJ- 32,096 31,139 11,498 386 7,759 3,353 5,106 7,438 7,097 957 687 130 141 Julyf 33,357 32,345 10,917 461 6,865 3,590 5,151 9,007 7,270 1,012 636 203 173 Aug.f 35,045 34,240 11,633 447 7,820 3,366 5,293 9,449 7,864 805 461 180 164 1 Excludes central banks, which are included with "Official institutions." "Other short-term claims"; and (b) a number of reporting banks are included 2 Data on second line differ from those on first line because (a) those in the series for the first time. claims of U.S. banks on their foreign branches and those claims of U.S. 3 Data on the two lines shown for this date differ because of changes agencies and branches of foreign banks on their head offices and foreign in reporting coverage. Figures on the first line are comparable in coverbranches, which were previously reported as "Loans", are included in age with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 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 AArreeaa aanndd ccoouunnttrryy Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyp Aug.p Europe: Austria 8 14 11 14 36 20 40 32 104 18 72 Belgium-Luxembourg 120 145 148 134 143 216 188 155 231 267 208 Denmark 59 53 48 50 60 76 57 67 63 42 49 Finland 118 89 108 106 93 97 115 124 131 147 151 France 330 525 621 649 682 743 721 624 727 701 760 Germany 321 392 311 342 382 395 355 441 421 366 379 Greece 29 23 35 41 36 37 47 48 49 61 66 IIttaallyy 255 363 316 313 330 482 507 512 572 442 441 NNeetthheerrllaannddss 108 172 133 139 147 174 169 202 212 165 112 Norway 69 82 72 85 91 76 91 96 '•91 87 136 Portugal 19 22 23 25 25 37 29 33 32 30 24 Spain 207 189 222 208 180 284 318 322 404 392 382 Sweden 164 177 153 135 106 121 132 95 117 119 139 Switzerland 125 203 176 240 338 270 327 417 663 386 354 Turkey 6 16 10 11 9 16 18 8 10 26 19 United Kingdom 997 1,210 1,456 1,490 1,621 2,009 1,627 2,179 2,363 2,282 2,546 Yugoslavia 22 19 10 9 15 12 13 25 20 26 25 Other Western Europe 20 26 27 19 20 22 28 55 26 19 22 U.S.S.R 41 51 46 29 36 33 30 38 47 35 30 Other Eastern Europe 49 72 59 64 65 70 65 95 84 105 106 Total 3,067 3,843 3,985 4,104 4,416 5,190 4,875 5,568 6,370 5,716 6,019 Canada 1,914 1,979 1,960 1,880 2,037 2,243 2,191 2,363 2,195 2,339 2,113 Latin America: Argentina 379 485 498 521 539 679 686 641 669 683 703 Bahamas i 519 614 875 579 1,043 1,289 1,126 1,944 1,887 1,559 2,068 Brazil 649 826 900 953 958' 1,114 1,180 1,315 1,476 1,500 1,521 Chile 52 125 151 136 155 180 193 165 182 209 231 Colombia 418 413 397 425 428 459 467 473 515 593 678 Cuba 13 13 12 11 11 13 13 13 13 12 13 Mexico 1,202 1,337 1,370 1,344 1,418 1,426 1,627 1,652 1,718 1,768 1,828 244 263 266 294 297 345 390 406 386 393 395 Peru 145 204 178 186 184 194 224 264 280 348 421 Uruguay 40 47 55 58 51 44 38 38 40 59 50 Venezuela 383 469 517 482 510 586 627 557 605 643 641 Other Latin American republics 388 465 490 542 546 600 617 618 663 683 696 Netherlands Antilles and Surinam 14 17 13 17 19 29 20 27 41 38 56 Other Latin America 36 124 140 356 461 268 281 191 298 231 344 Total 4,480 5,403 5,863 5,906 6,621 7,226 7,489 8,303 8,772 8,719 9,644 AAssiiaa:: CChhiinnaa,, PPeeooppllee''ss RReepp.. ooff ((CChhiinnaa MMaaiinnllaanndd)) 1 36 31 24 19 27 19 18 23 28 22 CChhiinnaa,, RReeppuubblliicc ooff ((TTaaiiwwaann)) 194 117 140 119 147 183 231 315 348 392 446 Hong Kong 93 124 147 169 189 170 179 166 207 198 271 India 14 16 16 16 15 19 18 25 18 20 34 Indonesia 87 96 88 105 107 97 71 105 115 116 120 Israel 105 155 166 153 140 165 140 135 158 205 205 Japan 4,152 6,034 6,400 6,466 6,960 7,857 8,607 9,715 10,798 12,361 12,812 Korea 296 369 403 432 477 498 555 632 597 620 706 Philippines 149 118 181 189 182 197 228 258 297 292 348 Thailand 191 225 273 322 364 405 434 389 416 423 429 Other 300 377 394 466 560 521 671 661 712 819 681 Total 5,584 7,666 8,238 8,463 9,159 10,138 11,153 12,416 13,689 15,474 16,073 Africa: EEggyypptt 21 40 35 42 40 42 44 54 58 59 83 MMoorrooccccoo 4 7 5 4 4 21 9 4 5 14 10 South Africa 143 147 129 133 134 131 153 206 202 210 238 Zaire 13 61 60 56 67 61 79 72 91 93 97 Other 118 155 159 178 175 210 192 218 266 273 • 275 TToottaall 299 410 388 413 420 466 477 554 622 649 702 OOtthheerr ccoouunnttrriieess:: AAuussttrraalliiaa 291 251 243 279 268 328 318 353 378 396 414 AAllll ootthheerr 40 36 43 37 49 64 59 66 71 64 78 TToottaall 330 287 286 316 317 392 377 420 449 459 492 TToottaall ffoorreeiiggnn ccoouunnttrriieess 15,674 19.589 20.720 21,082 22.969 25.655 26.563 29.623 32,096 33,357 35.044 IInntteerrnnaattiioonnaall aanndd rreeggiioonnaall 3 1 1 1 1 1 1 1 1 GGrraanndd ttoottaall 15,676 19.590 20.721 21,083 22.970 25.656 26.564 29.624 32,096 33,357 35.045 1 Includes Bermuda through Dec. 1972. their own account or for account of their customers in the United States; NOTE.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities. foreigners, where collection is being made by banks and bankers for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 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 E pe nd ri o o d f Total Loans to— O lo t n h g e - r P f c o a u r y r i e n r a e i b g n l n e - U K d n i o n it m g e - d E O u t r h o e p r e Canada Am La e t r i i n c a Japan O A t s h i e a r co o u A t n h l t e l r r ie s Official Other term cies Total institu- Banks1 foreign- claims tions ers 197 0 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 197 1 3,667 3,345 575 315 2.455 300 22 130 593 228 1,458 246 583 429 19722 ( 1 4 5 , , 9 0 5 2 4 9 4 4 , , 5 5 3 5 9 5 8 8 3 3 3 6 4 4 3 3 0 0 3 3 , , 2 2 7 8 6 9 4 3 3 7 5 5 4 4 0 0 1 1 4 4 5 5 7 7 0 0 4 1 4 4 0 0 6 6 2 1 , , 0 9 1 9 2 6 3 35 1 3 9 9 8 0 8 0 1 5 5 0 1 3 4 1973_Aug 5,522 5,012 1,002 516 3,495 464 46 137 1,007 404 1,961 309 1,157 548 Sept.. 5,408 4,885 1,010 509 3,365 454 70 131 976 418 1,939 256 1,186 501 Oct.. 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.. 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 6,048 5,433 1,245 640 3,548 540 75 146 1,264 473 2,127 248 1,300 490 6,661 6,019 1,542 734 3,744 566 76 191 1,550 478 2,340 246 1,328 529 May.... 6,707 6,090 1,539 755 3,796 549 67 214 1,535 467 2,402 233 1,336 520 June 7,000 6,389 1,599 775 4,015 545 66 216 1,666 496 2,462 236 1,411 514 Julyf. .. 6,976 6,379 1,460 871 4,048 530 67 239 1,581 483 2,517 261 1,379 516 Aug.p... 6,946 6,355 1,434 894 4,027 523 68 279 1,523 488 2,496 260 1,396 504 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 i securities 2 Foreign bonds Foreign stocks NNeett ppuui rchases or sales Period TToottaall II aa nn nn tt dd ll.. Foreign cchh PP aa uu ss rr ee -- ss SSaalleess cc NN hhaa ss ee ss aa tt ee llee pp ss ss uu oo rr-- rr cchh PP aa uu ss rr ee -- ss SSaalleess cc NN hhaa ss ee ss aa tt ee llee pp ss ss uu oo rr-- rr ch P a u s r e - s Sales c N h e a s t s a e le p s s u o r- r rreeggiioonnaall Total Official Other 197 1 1,672 130 1,542 1,661 -119 14,593 13,158 1,435 1,687 2,621 -935 1,385 1,439 -57 197 2 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 197 3 305 -165 470 465 6 18,543 13,810 4,733 1,474 2,467 -993 1,729 1,554 176 1974_jan.-Aug.p -697 124 -821 -761 -60 10,176 8,931 1,245 694 2,121 -1,428 1,418 1,275 142 1973_Aug -51 17 -68 -28 -39 1,328 864 464 96 157 -61 117 125 -8 Sept 40 20 20 8 12 1,174 963 212 67 101 -34 115 105 10 Oct 29 -13 42 15 27 1,807 1,722 86 97 336 -238 129 131 -2 Nov -691 -5 -686 -722 36 1,948 1,692 256 104 317 -213 156 178 -22 Dec -486 1 -487 -506 19 1,336 1,359 -23 144 209 -65 159 144 15 1974—Jan -432 20 -452 -472 19 1,717 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 157 166 -10 -10 1,672 1,484 188 102 398 -295 167 183 -16 -234 -82 -152 -171 20 1,060 844 216 103 323 -219 189 155 34 M^y! -28 29 -57 -7 -50 903 852 51 89 154 -64 173 174 -2 June -101 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 JulyP 23 9 14 14 1,048 1,054 -6 94 251 -157 122 116 6 Aug.J' -37 47 -84 -73 -11 1,398 1,130 269 59 216 -157 146 117 29 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

OCTOBER 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- EEuurrooppee EEuurrooppee Canada America Asia Other 1 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 99 577 5 11997744——JJaann..--AAuugg..pp 5,373 4,905 468 177 37 282 124 -71 30 580 -28 -44 -56 16 575 521 -15 1973—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 33 165 * -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 576 591 -15 18 7 29 5 -36 -5 19 -7 -15 -14 2 June 521 513 8 -15 8 33 11 -18 -3 16 13 -7 -15 2 Julyp 507 508 -1 13 5 39 -9 -48 3 3 10 -2 -14 2 Aug.p 579 500 79 19 18 16 15 9 -11 65 14 9 -10 • 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 r -Sw la it n z d e r- K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada Am La e t r i i n c a Asia Africa co O u t n h t e ri r e s I r n e t g l. i o a n n a d l 1 1 9 9 7 7 2 1 1,8 7 8 0 1 3 33 1 6 5 -1 7 4 2 13 1 5 6 3 3 6 2 7 7 31 3 5 9 1,3 6 0 3 3 1 3 8 7 2 3 -2 2 3 -21* 1 3 4 9 8 197 3 1,948 201 -19 307 275 473 1,204 49 588 10 52 1974—Jan.-Aug.^' 777 81 187 80 255 -50 585 23 -20 10 161 1973—Au g 123 31 -5 57 10 94 -1 2 24 Sept -2 2 -1 14 12 26 -1 11 -39 Oct -11 53 1 46 -14 1 86 4 1 -103 Nov -138 4 -2 28 76 5 122 -21 3 -209 -33 Dec -19 9 4 37 60 32 152 16 -183 -3 1974—Ja n 89 3 25 23 117 -9 159 14 1 -104 18 Feb -144 1 45 -15 30 -2 -5 -119 -47 Mar 2 1 0 3 0 9 60 1 -2 -7 2 9 3 -6 1 7 - 1 8 1 1 1 4 -1 6 -1 • 21 8 5 6 May!!!'.!! 66 10 28 19 59 3 5 3 -3 June 242 5 116 15 64 -17 185 1 4 -3 56 Julyp -5 -1 72 2 36 -11 100 1 5 7 10 -128 Aug.f 190 1 1 -1 29 -9 21 2 4 199 -36 NOTE.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance diof U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 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- rrooppee ica rica tries ppeerriioodd (due to (due from gional tries foreigners) foreigners) 1971 -992 -310 -682 31 -275 -46 -366 -57 32 419 300 1972 -622 -90 -532 505 -635 -69 -296 -66 29 333 320 1973 -818 139 -957 -141 -569 -120 -168 3 37 Dec 311 314 1974— 325 379 Jan.-Aug.f.. -1,286 19 -1,305 -424 -1,053 -58 223 -6 14 312 339 286 336 1973—Aug.... -69 5 -75 -21 -44 -4 -8 * 3 Dec 372 405 Sept.... -25 4 -28 -28 8 -8 -1 • Oct -240 4 -243 -25 -148 -8 -64 1 1 310 364 Nov... -236 9 -245 -47 -89 -6 -104 * * 316 243 Dec.... -50 51 -101 -45 -11 -15 -34 2 3 290 255 Dec 333 231 1974__jan -291 _4 -287 -81 -204 -2 -1 -1 2 Feb.... -46 6 -52 -62 -11 -9 32 -4 1 1974—Mar.f 384 227 Mar.... -311 4 -315 -24 -288 -15 10 * 3 354 243 Apr.... -185 3 -188 -49 -157 6 12 « May... -66 5 -71 -26 -35 -22 10 * 3 June... -108 3 -110 -78 -121 -6 94 1 NOTE.—Data represent the money credit balances and JulyP... -151 1 -152 -69 -108 _ 1 24 1 3 money debit balances appearing on the books of reporting Aug.f.. -128 2 -129 -35 -128 -9 42 -1 1 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 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- forbank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies 1971—Dec.» 59,807 4,753 2,300 2,453 53,296 11,210 23,520 1,164 17,401 1,758 1972—Dec.. 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 2,220 1973'•-June. 96,141 4,930 2,325 2,606 87,815 13,149 44,976 1,805 27,885 3,396 July. 101,081 5,349 2,502 2,847 92,157 14,941 46.243 1,933 29,041 3,575 Aug.. 102,309 5,109 2,286 2,823 93,389 15,289 45,964 2,or 30,125 3,812 Sept.. 108,296 4,808 1,917 2,891 98,886 16,782 48.244 2,147 31,712 4.603 Oct.. 111,087 4,802 1,831 2,970 101,789 17,721 49,477 2,239 32,352 4,496 Nov.. 117,514 5,811 2,848 2,964 106,221 18,525 52,001 2,120 33,574 5,481 Dec.. 121,866 4.881 1,882 3,000 112,240 19,207 55,857 2,503 34,673 4,745 1974—Jan.., 123,912 4,605 1,552 3,054 114,703 19,497 57,032 2,733 35,441 4.604 Feb.. 127,245 4,417 1,614 2,802 117,765 20,341 57,163 2,957 37,304 5,064 Mar.. 136,983 7,775 5,172 2,603 124,033 22,379 60,264 3,030 38,360 5,174 Apr.. 139,532 5,989 3,414 2,57;- 128,455 22,854 62,334 3,629 39,638 5,087 May. 145,362 7.882 5,322 2,561 132,066 24,376 64,635 3,645 39,410 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. 39,095 4.501 2,294 2,207 34,041 6,658 17,307 861 9,215 553 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973'•-June., 60,018 4,580 2,276 2,303 54,146 8,118 30,480 1,037 14,510 1,292 July. . 62,170 4,774 2,467 2,307 55,990 8,852 30,924 1,122 15.092 1,406 Aug.. 63,479 4.502 2,227 2,274 57,599 9,660 30,503 1,191 16,244 1,379 Sept.. 66,361 4,386 1,865 2,521 60,362 10,315 31,767 1,186 17.093 1,613 Oct.. 68,40C 4,356 1,789 2,567 62,461 11,223 32,595 1,223 17,419 1,583 Nov.. 73,823 5,340 2,788 2,552 66,772 11,938 35,018 1,314 18,502 1,711 Dec.. 79,437 4,427 1,844 2,583 73,244 12,829 39,013 1,587 19,815 1,766 1974—Jan... 81,949 4,166 1,515 2,651 76,033 13,253 40,027 1,848 20,905 1,749 Feb.^ 83,912 4,032 1,559 2,473 77,963 13,769 40,185 2,024 21,985 1,918 Mar.. 92,838 7,370 5,088 2,281 83,543 15,776 42,971 1,977 22,818 1,925 Apr.. 94,127 5,618 3,367 2,251 86,361 15,954 44,379 2,726 23,302 2,148 May. 100,155 7,537 5,274 2,263 90,145 16,874 47,330 2,840 23,101 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 9,425 26,097 9,097 1,125 IN BAHAMAS AND CAYMANS i 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. 15,649 1,914 402 1,512 13,478 7,939 5,539 257 July.. 16,392 1,926 347 1,579 14,181 8,416 5,765 285 Aug.. 19,258 2,259 576 1,683 16,561 9,796 6,764 438 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.. 21,692 2,528 824 1,704 18,591 10,468 8,123 572 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 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. 231,217 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

OCTOBER 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- forbank tutions eigners IN ALL FOREIGN COUNTRIES 59,809 3,061 658 2,403 54,679 10,743 29,765 5,472 8,699 2,069 1971—Dec. .. .Total ail currencies. 78,203 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 1972—Dec. 96,141 4,456 1,005 3,451 88,033 12,918 51,897 9,483 13,736 3,652 1973—June 101,080 4,365 1,198 3,166 92,791 14,642 54,134 9,575 14,440 3,925 July 102,309 4,599 1.079 3,520 93,571 15,627 54,425 8,494 15,025 4,139 108,296 4,728 1,180 3,548 98,907 16,615 57,803 8,635 15,854 4,661 111,087 4,680 1,298 3,382 101,719 17,253 59,304 9,073 16,089 4,688 Oct. 117,515 4,776 1,084 3,692 107,092 17,726 '•63,378 9,553 16,434 5,646 Nov. 121,866 5,070 1,158 3,912 111,672 18,231 65,636 10,094 17,711 5,125 123,882 5,319 1,738 •3,581 113,807 18,531 67,838 9,547 17,890 4,756 1974—Jan. 127,245 5,856 2,013 3,844 116,440 19,337 67,584 10,119 19,399 4,949 Feb. 136,983 6,644 2,127 4,5l7 125,014 21,043 71,948 10,474 21,550 5,324 Mar. 139,532 6,870 2,368 4,502 127,285 22,469 71,605 11,196 22,015 5,377 Apr. 145,362 8,105 2,930 5,175 131,366 23,605 74,421 11,404 21,936 5,891 May 146,876 8,550 3,011 5,539 131,803 23,883 71,889 13,649 22,380 6,524 40,899 2,624 503 2,121 37,024 6,624 21,107 4,391 4,901 1,250 1971^ Dec. . Payable in U.S. dollars 54,878 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 1972—Dec. 62,868 3,911 866 3,045 57,174 8,376 34,437 7,247 7,114 1,783 1973—June 64,390 3,770 1,034 2,737 58,732 9,219 35,089 7,005 7,419 11,,888888 65,421 4,050 939 3,110 59,280 10,237 35,398 '•6,165 7,480 22,,009911 68,610 4,146 1,021 3,125 '•62,196 10,627 37,260 6,242 8,067 2,269 70,058 4,135 1,139 2,996 63,693 11,312 37,662 6,337 8,382 2,230 Oct. 75,921 4,190 928 3,262 68,619 11,877 41,703 6,301 8,738 3,112 Nov. 80,318 4,488 993 3,495 73,221 12,571 43,694 7,327 9,629 2,608 Dec. 82,212 4,820 1,609 3,211 74,920 12,754 44,990 7,172 10,003 2,473 1974—Jan. 84,553 5,353 1,860 3,493 76,732 13,337 44,458 7,809 11,128 2,468 93,355 6,086 1,924 4,161 84,471 15,041 49,065 8,205 12,159 2,799 Mar. 94,887 6,316 2,195 4,121 85,673 15,830 48,252 8,792 12,800 2,898 Apr. 100,579 7,430 2,741 4,689 89,706 16,628 51,078 9,057 12,943 3,443 102,210 7,944 2,810 5,134 90,274 16,995 49,139 10,937 13,203 3,992 IN UNITED KINGDOM 34,227 1,653 109 1,544 31,814 3,401 18,833 4,454 5,126 760 1971 '^-Dec. .. .Total, all currencies 43,467 1,453 113 1,340 41,020 2,961 24,596 6,433 7,030 994 1972—Dec. 51,203 1,957 122 1,835 47,936 3,321 29,151 7,565 7,899 1,310 1973 June 53,996 1,875 163 1,711 50,707 3,883 30,797 7,793 8,234 1,414 July 52,880 2,080 171 1,909 49,293 3,731 30,266 6,730 8,565 1,508 55,842 2,125 161 1,964 51,957 4,118 31,963 6,929 8,947 1,759 57,306 2,026 129 1,897 53,475 4,036 ''33,341 7,118 '•8,980 1,805 ....: ::oct.' 61,897 2,197 143 2,054 57,042 3,886 36,052 7,680 9,424 2,657 61,732 2,431 136 2,295 57,311 3,944 35,063 8,056 10,248 1,990 Dec. 63,726 2,429 346 2,083 59,356 4,350 36,996 7,679 10,332 1,941 1974—Jan. 63,585 2,573 269 2,303 58,956 4,193 35,489 8,160 11,112 2,057 Feb. 68,076 3,167 353 2,814 63,096 4,587 37,836 8,456 12,217 1,813 68,914 3,123 409 2,714 63,914 4,975 36,700 9,064 13,175 1,877 Apr. 71,935 3,727 749 2,978 66,111 4,890 39,706 9,111 12,404 2,097 May 71,307 3,744 606 3,138 65,433 4,913 36,828 11,162 12,530 2,130 24,629 1,405 23 1,383 22,852 2,164 13,840 3,666 3,181 372 1971 Dec. .Payable in U.S. dollars 30,810 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 33,491 1,731 102 1,629 31,185 2,234 18,318 5,971 4,663 575 1973—June 3 33 2 , , 8 9 0 6 3 0 1 1 , , 8 6 4 6 6 1 1 14 4 8 8 1 1 , , 5 6 1 9 3 8 3 3 0 1 , , 4 5 3 4 3 9 2 2 , , 2 3 1 1 3 6 1 1 8 8 , , 6 5 3 6 9 6 4 5 , , 9 8 9 5 5 5 4 4 , , 7 6 3 6 8 0 6 59 8 3 1 . V. J 34,886 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 Oct. 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 Dec. 40,979 2,200 329 1,871 37,884 2,846 22,971 5,806 6,262 895 1974—Jan. 40,930 2,346 243 2,103 37,579 2,729 21,464 6,342 7,044 1,006 Feb. 45,579 2,927 329 2,598 41,708 3,063 24,300 6,694 7,650 945 Mar. 46,323 2,878 384 2,494 42,453 3,234 23,382 7,225 8,612 992 Apr. 49,255 3,480 724 2,756 44,580 3,083 26,128 7,306 8,064 1,194 May 48,982 3,516 579 2,937 44,228 3,255 23,794 9,010 8,170 1,238 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. 15,648 1,458 13,863 2,272 10,204 1,387 327 1973'' June 16,391 1,335 14,733 2,691 10,417 1,625 323 July 19,258 1,315 17,336 3,917 11,623 1,796 408 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 Oct. 21,693 1,559 19,546 4,798 12,973 1,776 588 Nov. 23,771 1,517 21,803 5,526 14,453 1,824 451 Dec. 24,071 1,848 21,782 5,293 14,569 1,920 441 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 Mar. 28,776 2,202 26,095 7,200 16,784 2,111 479 30,862 2,567 27,704 8,255 16,759 2,690 591 231,217 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. • OCTOBER 1974 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CUIMS 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 EEnndd ooff EEnndd ooff UUnniitteedd ppeerriioodd DDeeppoossiittss U se .S cu . r T it r ie e s a s i . Ear g m o a ld rk ed ppeerriioodd TToottaall Deposits i S n t h e v o e rm s rt t - - Deposits i S n t h e ve o rm s rt t - - KK dd ii oo nn mm gg-- CCaannaaddaa ments 1 ments 1 1971 294 43,195 13,815 1972 325 50,934 215,530 1,491 1,062 161 183 86 663 534 1,141 697 150 173 121 372 443 1973— O Se c p t. t . . . . . . 4 2 2 5 6 0 5 5 4 5 , , 7 4 6 0 6 7 21 1 7 5 , , 1 4 2 3 2 7 1971 / \ 1 1 , , 6 5 4 0 8 7 1 1 , ,0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 57 8 7 0 4 5 4 8 3 7 Nov... 420 52,998 17,104 Dec.... 251 52,070 17,068 1972 /I,965 1,446 169 307 42 702 485 12,375 1,912 55 340 68 912 535 1974_jan.... 392 49,582 17,044 Feb... 542 50,255 17,039 1973—July. . .. 3,338 2,560 136 475 167 1,128 9.59 Mar... 366 51,342 17,037 Aug.*" 3,422 2,642 82 490 209 1,117 940 A M p a r y . . . . . 4 5 2 1 9 7 5 5 4 2 , , 1 6 9 4 5 2 1 1 7 7 , , 0 0 2 2 1 6 S O e c p t. t " . -. ... 2 3 , , 9 2 9 8 1 5 2 2 , , 3 5 2 7 8 1 7 6 8 6 4 47 5 6 1 1 1 4 6 8 1 1 1 , , 0 1 6 4 3 2 8 89 8 2 1 June,.. 384 54,442 17,014 Nov. 3,239 2,602 64 437 136 1,121 922 J A u u l g y . . . . . . 3 37 3 2 0 5 5 4 3 , , 3 6 1 8 7 1 1 16 6 , , 9 9 1 6 7 4 Dec. ^ . .. 3,184 2,603 37 431 113 1,128 775 Sept... 411 53,849 16,892 1974—Jan.'-.... 2,858 2.284 59 365 149 1,091 772 Feb.'-.... 3,260 2,624 65 368 203 1,229 868 Mar.^... 3,701 3,027 99 358 218 1,373 1,029 1 Marketable U.S. Treasury bills, certificates of in- Apr.^... 3,603 2,983 60 351 209 1,490 929 debtedness, notes, and bonds and nonmarketable U.S. May^... 3,693 3,031 71 338 230 1,442 983 Treasury securities payable in dollars and in foreign June*" 3,651 3,031 57 377 185 1,418 932 currencies. July 3,753 3,194 74 348 138 1,443 835 2 The value of earmarked gold increased because of the changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the NOTE.—Excludes deposits and U.S. Treasury securities obligation was incurred by the foreigner. held for international and regional organizations. Ear- 2 Data on the two lines for this date differ because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. 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. 23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter's name 197a_Sept.. 2,512 1,956 557 4,361 3,756 301 305 Dec.. 2,677 2,281 496 4,160 3,579 234 348 1971—Mar... 2,437 1,975 462 4,515 3,909 232 374 June.. 2,375 1,937 438 4,708 4,057 303 348 Sept... 2,564 2,109 454 4,894 4,186 383 326 2,704 2,229 475 5,185 4,535 318 333 Dec.i. 2,763 2,301 463 5,004 4,467 290 247 1972—Mar 2,844 2,407 437 5,177 4,557 318 302 June 2,925 2,452 472 5,331 4,685 376 270 Sept 2,933 2,435 498 5,495 4,833 432 230 Dec. 1 . 3 3 , , 1 5 1 3 9 6 2 3 , , 6 0 3 2 5 4 4 5 8 1 4 1 5 6 , , 7 3 2 6 3 6 5 5 , ,6 0 8 7 8 4 4 3 1 9 1 6 2 2 3 8 8 2 1973—Mar. 3,467 2,945 522 7,170 6,268 464 438 June»-.. 3,442 2,864 578 7,424 6,555 503 366 Sept., 3,760 3,040 720 7,800 6,840 535 425 Dec.''.. 4,219 3,437 782 8,558 7,624 489 445 1974—Mar.f. 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 compabecause of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OCTOBER 1974 • 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.p Dec.'^ June*" Sept. Dec. Mar.2' 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 167 166 165 168 161 231 325 283 310 413 Germany, Fed. Rep. of.. 164 188 200 236 238 195 278 265 284 336 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 1,107 781 857 940 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 2,013 1,722 1,969 2,115 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 Bahamas 1 391 434 364 419 206 662 766 746 633 761 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 26 36 36 44 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 615 688 625 769 637 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 33 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 224 290 348 294 377 468 494 633 821 1,157 Korea 21 18 20 37 38 67 46 55 105 109 Philippines 16 20 17 17 9 59 64 70 73 88 Thailand 5 6 6 6 7 23 24 28 28 53 Other Asia 152 141 183 239 355 206 207 207 238 260 Total 530 593 694 763 940 1,035 1,066 1,274 1,571 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 18 20 Other Africa 62 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 Another 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 3,536 3,442 3,760 4,219 4,691 6,366 7,424 7,800 8,558 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. • OCTOBER 1974 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area EEEnnnddd ooofff pppeeerrriiioooddd TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss TToottaall K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n ic r a Japan O A t s h i e a r Africa o A th ll e r 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 T^o/-. 1 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 3,138 3,118 128 705 767 174 60 653 136 325 86 84 1972—Mar 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec.i r 3,540 3,370 163 715 833 184 60 659 156 406 87 109 1 3,688 3,472 187 758 868 187 64 703 134 396 82 111 1973—Mar.'- 3,874 3,614 151 816 864 165 63 796 124 410 101 125 June»^ 3,857 3,674 174 818 875 146 65 819 130 413 104 131 Sept.*- 4,089 3,844 211 840 894 147 73 827 140 471 104 137 Dec.*- 4,003 3,915 285 785 949 145 79 821 128 470 112 142 1974_Mar.2' 3,871 4,070 360 758 1,007 194 82 798 138 469 115 149 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. OPEN MARKET RATES (Per cent per annum) Germany, Switzer- Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills. day bank bills. day banks' day biUs, day bills. day discount 3 months 1 money 2 bills, 3 months money deposit money 3 60-90 moneys 3 months money rate 3 months rates days 4 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—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 A^ ug 8.76 8.83 12.80 11.24 11.11 9.50 13.68 9.05 7.50 77..0099 77..0000 Sept 88..7700 88..8844 1122..1111 1100..9911 1100..6699 99..5500 1133..4411 99..0000 77..4422 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

OCTOBER 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, 4Vi Argentina—3 and 5 per cent for certain rural and industrial paper, de- per cent for advances against government bonds, and 5y^ 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—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 Sept 144.87 5.2975 2.5364 101.384 16.111 20.831 37.580 12.316 231.65 .15103 .33439 Malaysia Mexico Nether- New Norway Portugal South Spain Sweden Switzer- United Period (dollar) (peso) lands Zealand (krone) (escudo) Africa (peseta) ((kkrroonnaa)) 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—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 Sept 41.443 8.0000 36.870 139.64 17.993 3.8565 142.69 1.7339 22.333 33.371 231.65 NOTE.—^Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 GOLD RESERVES • OCTOBER 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 Aljgeria Argen- Aus- Aus- Bel- Canada Rep. of Den- Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world 1 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—Aug.. 5,826 10,487 208 152 281 793 1,603 834 87 69 92 Sept.. 44,880 5,826 10,487 28,565 208 152 282 793 1,603 834 87 69 92 Oct... 6,474 11,652 231 169 312 881 1,781 927 97 77 103 Nov.. 6.476 11,652 231 169 212 881 1,781 927 97 77 103 Dec... 49,850 6,478 11,652 31,720 231 169 311 881 1,781 927 97 77 103 1974—Jan 6,478 11,652 231 169 312 882 1,781 927 97 77 103 Feb 6,478 11,652 231 169 312 882 1,781 927 97 77 103 Mar.... 49,840 6,478 11,652 31,710 231 169 312 882 1,781 927 97 77 103 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... f49,835 6,477 11,652 ^>31,705 231 169 312 882 1,781 927 97 77 103 July..., 6,477 11,652 231 169 312 882 1,781 927 97 76 Aug.f. , 11,652 231 312 882 1,781 927 97 76 Ger- End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb- Libya Mexi- Netherperiod Fed. anon co 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—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 3,483 891 120 389 103 194 2,294 Mar.. 4,262 4,966 149 293 159 173 3,483 891 123 389 103 156 2,294 Apr.. 4,262 4,966 149 293 159 173 3,483 891 118 389 103 155 2,294 May. . 4,262 4,966 149 159 173 3,483 891 142 389 103 154 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 3,483 891 130 389 105 2,294 Aug.f 4,262 4,966 158 173 3,483 891 130 389 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 Settlements 2 197 0 54 902 119 666 498 200 2,732 126 1,349 162 384 -282 197 1 55 921 108 410 398 200 2,909 130 775 148 391 310 197 2 60 1,021 117 681 541 217 3,158 136 800 133 425 218 1973_Aug 60 1.035 117 740 542 220 3,162 136 797 133 425 205 Sept 60 1.036 116 738 542 220 3,162 136 797 133 425 213 Oct 67 1,154 129 820 602 244 3.512 151 886 148 472 227 Nov 67 1,159 129 809 602 244 3.513 151 886 148 472 237 Dec 67 1,163 129 802 602 244 3,513 151 886 148 472 235 1974—Jan 67 1,167 129 793 602 244 3,513 151 148 472 271 Feb 67 1,171 129 783 602 244 3,513 151 886 148 472 277 Mar 67 1,176 129 780 602 244 3,513 151 886 148 472 274 67 1,180 129 780 602 244 3,513 151 886 148 472 271 May.' 67 1,180 129 777 602 244 3,513 151 886 148 472 247 June 67 1,180 129 781 602 244 3,513 151 886 148 472 259 July 67 129 788 244 3,513 151 472 259 Aug.2' 67 129 778 244 3,513 151 472 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

A 79 Board of Governors and Staff shown on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

> § BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ARTHUR F. BURNS, Chairman GEORGE W. MITCHELL, Vice Chairman JOHN E. SHEEHAN JEFFREY M. BUCHER ROBERT C. HOLLAND HENRY C. WALLICH OFFICE OF MANAGING DIRECTOR FOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR OPERATIONS RESEARCH AND ECONOMIC POLICY DANIEL M. DOYLE, Managing Director THOMAS J. O'CONNELL, Counsel to the J. CHARLES PARTEE, Managing Director JOHN M. DENKLER, Deputy Managing Chairman STEPHEN H. AXILROD, Adviser to the Board Director ROBERT SOLOMON, Adviser to the Board SAMUEL B. CHASE, JR., Adviser to the Board GORDON B. GRIMWOOD, Assistant Director JOSEPH R. COYNE, Assistant to the Board ARTHUR L. BROIDA, Assistant to the Board and Program Director for JOHN S. RIPPEY, Assistant to the Board MURRAY ALTMANN, Special Assistant to the Contingency Planning JOHN J. HART, Special Assistant to the Board Board WILLIAM W. LAYTON, Director of Equal FRANK O'BRIEN, JR., Special Assistant to the Employment Board BRENTON C. LEAVITT, Program Director DONALD J. WINN, Special Assistant to the Board for Banking Structure DIVISION OF RESEARCH AND STATISTICS PETER E. BARNA, Program Director for Bank Holding Company Analysis LEGAL DIVISION LYLE E. GRAMLEY, Director ROBERT S. PLOTKIN, Associate Program JAMES L. PIERCE, Associate Director Director for Bank Holding Company Analysis ANDREW F. OEHMANN, Acting General Counsel PETER M. KEIR, Adviser JOHN NICOLL, Deputy General Counsel JAMES L. KICHLINE, Adviser DIVISION OF FEDERAL RESERVE BANK BALDWIN B. TUTTLE, Assistant General STANLEY J. SIGEL, Adviser Counsel MURRAY S. WERNICK, Adviser OPERATIONS CHARLES R. MCNEILL, Assistant to the General KENNETH B. WILLIAMS, Adviser Counsel JAMES B. ECKERT, Associate Adviser RONALD G. BURKE, Director EDWARD C. ETTIN, Associate Adviser JAMES R. KUDLINSKI, Associate Director ROBERT J. LAWRENCE, Associate Adviser E. MAURICE MCWHIRTER, Associate ELEANOR J. STOCK WELL. Associate Adviser Director OFFICE OF SAVER AND JOSEPH S. ZEISEL, Associate Adviser WALTER A. ALTHAUSEN, Assistant Director CONSUMER AFFAIRS STEPHEN P. TAYLOR, Assistant Adviser HARRY A. GUINTER, Assistant Director THOMAS D. THOMSON, Assistant Adviser THOMAS E. MEAD, Assistant Director FREDERIC SOLOMON, Assistant to the LOUIS WEINER, Assistant Adviser P. D. RING, Assistant Director Board and Director HELMUT F. WENDEL, Assistant Adviser Digitized for FRASWEIRL LIAM H. WALLACE, Assistant Director JANET O. HART, Deputy Director LEVON H. GARABEDIAN, Assistant Director http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE RALPH C. BRYANT, Director CHARLES L. HAMPTON, Director THEODORE E. ALLISON, Secretary JOHN E. REYNOLDS, Associate Director HENRY W. MEETZE, Associate Director NORMAND R. V. BERNARD, Assistant PAUL WONNACOTT, Associate Director Secretary GLENN L. CUMMINS, Assistant Director ROBERT F. GEMMILL, Adviser WARREN N. MINAMI, Assistant Director ELIZABETH L. CARMICHAEL, Assistant Secretary REED J. IRVINE, Adviser ROBERT J. ZEMEL, Assistant Director GRIFFITH L. GARWOOD, Assistant Secretary BERNARD NORWOOD, Adviser SAMUEL PIZER, Adviser DIVISION OF PERSONNEL DIVISION OF BANKING SUPERVISION GEORGE B. HENRY, Associate Adviser AND REGULATION HELEN B. JUNZ, Associate Adviser KEITH D. ENGSTROM, Director BRENTON C. LEAVITT, Director CHARLES W. WOOD, Assistant Director FREDERICK R. DAHL, Assistant Director JACK M. EGERTSON, Assistant Director OFFICE OF THE CONTROLLER JOHN N. LYON, Assistant Director JOHN T. MCCLINTOCK, Assistant Director JOHN KAKALEC, Controller THOMAS A. SIDMAN, Assistant Director WILLIAM W. WILES, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES WALTER W. KREIMANN, Director DONALD E. ANDERSON, Assistant Director JOHN D. SMITH, Assistant Director > CO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 FEDERAL OPEN MARKET COMMITTEE ARTHUR F. BURNS, Chairman ALFRED HAYES, Vice Chainnan 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 ARTHUR L. BROIDA, Secretary ROBERT SOLOMON, Economist MURRAY ALTMANN, Deputy Secretary (International Finance) NORMAND R. V. BERNARD, Assistant HARRY BRANDT, Associate Economist Secretary RALPH C. BRYANT, Associate Economist THOMAS J. O'CONNELL, General Counsel RICHARD G. DAVIS, Associate Economist EDWARD G. GUY, Deputy General Counsel RAYMOND J. DOLL, Associate Economist JOHN NICOLL, Assistant General Counsel LYLE E. GRAMLEY, Associate Economist J. CHARLES PARTEE, Senior Economist WILLIAM J. HOCTER, Associate Economist STEPHEN H. AXILROD, Economist JAMES PARTHEMOS, Associate Economist (Domestic Finance) JAMES L. PIERCE, Associate Economist JOHN E. REYNOLDS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager, System Open Market Account FEDERAL ADVISORY COUNCIL THOMAS L STORRS, FIFTH FEDERAL RESERVE DISTRICT. President JAMES F. ENGLISH, JR., FIRST FEDERAL RESERVE DISTRICT, Vice President GABRIEL HAUGE, SECOND FEDERAL DONALD E. LASATER, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JAMES F. BODINE, THIRD FEDERAL GEORGE H. DIXON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL EUGENE H. ADAMS, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT LAWRENCE A. MERRIGAN, SIXTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH FEDERAL HAROLD A. ROGERS, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 83 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 C. Whitney Brown L. Terry Britt Memphis 38101 Bruce B. Dayton Bruce K. MacLaury Minneapolis 55480 James P. McFarland Clement A. Van Nice William A. Cordingley Howard L. Knous Helena 59601 Robert W. Wagstaff George H. Clay Kansas City 64198 Robert T. Person John T. Boysen Maurice B. Mitchell J. David Hamilton Denver 80217 Oklahoma City 73125 Joseph H. Williams William G. Evans Durward B. Varner Robert D. Hamilton Omaha 68102 John Lawrence Philip E. Coldwell Dallas 75222 Charles T. Beaird T. W. Plant Gage Holland Fredric W. Reed E H l o P us a t s o o n 7 79 7 9 0 9 0 9 1 T.J. Barlow James L. Cauthen San Antonio 78295 Marshall Boy kin, III Carl H. Moore San Francisco 94120 0. Meredith Wilson John J. B^alles 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 84 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.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND THE PERFORMANCE OF BANK HOLDING COMPA- FUNCTIONS. 1974. 125 pp. $1.00 each; 10 or NIES. 1967. 29 pp. $.25 each; 10 or more to one more to one address, $.75 each. address, $.20 each. THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 ANNUAL REPORT each; 10 or more to one address, $.85 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per TRADING IN FEDERAL FUNDS. 1965. 116 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, U.S. TREASURY ADVANCE REFUNDING. JUNE Costa Rica, Cuba, Dominican Republic, Ecuador, 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or Guatemala, Haiti, Republic of Honduras, Mexico, more to one address, $.40 each. Nicaragua, Panama, Paraguay, Peru, El Salvador, BANK CREDIT-CARD AND CHECK-CREDIT PLANS. Uruguay, and Venezuela; 10 or more of same issue 1968. 102 pp. $1.00 each; 10 or more to one to one address, $18.00 per year or $1.75 each. address, $.85 each. Elsewhere, $24.00 per year or $2.50 each. FEDERAL RESERVE CHART BOOK ON FINANCIAL INTEREST RATE EXPECTATIONS: TESTS ON YIELD AND BUSINESS STATISTICS. Monthly. Subscrip- SPREADS AMONG SHORT-TERM GOVERNMENT tion includes one issue of Historical Chart Book. SECURITIES. 1968. 83 pp. $.50 each; 10 or more $12.00 per year or $1.25 each in the United States to one address, $.40 each. and the countries listed above; 10 or more of same SURVEY OF FINANCIAL CHARACTERISTICS OF issue to one address, $1.00 each. Elsewhere, CONSUMERS. 1966. 166 pp. $1.00 each; 10 or $15.00 per year or $1.50 each. more to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. Subscription to monthly chart book includes one 321 pp. $1.00 each; 10 or more to one address, issue. $1.25 each in the United States and countries $.85 each. listed above; 10 or more to one address, $1.00 each. REPORT OF THE JOINT TREASURY-FEDERAL RE- Elsewhere, $1.50 each. SERVE STUDY OF THE U.S. GOVERNMENT SE- THE FEDERAL RESERVE ACT, as amended through CURITIES MARKET. 1969. 48 pp. $.25 each; 10 December 1971, with an appendix containing pro- or more to one address, $.20 each. visions of certain other statutes affecting the Federal JOINT TREASURY-FEDERAL RESERVE STUDY OF Reserve System. 252 pp. $1.25. THE GOVERNMENT SECURITIES MARKET: REGULATIONS OF THE BOARD OF GOVERNORS OF STAFF STUDIES—PART 1.1970. 86 pp. $.50 each; THE FEDERAL RESERVE SYSTEM. 10 or more to one address, $.40 each. PART 2. PUBLISHED INTERPRETATIONS OF THE BOARD OF 1971. 153 pp. and PART 3. 1973. 131 pp. Each GOVERNORS, as of December 31, 1973. $2.50. volume $1.00; 10 or more to one address, $.85 DEBITS AND CLEARING STATISTICS AND THEIR USE. each. 1959. 144 pp. $1.00 each; 10 or more to one OPEN MARKET POLICIES AND OPERATING PROCEaddress, $.85 each. DURES—STAFF STUDIES. 1971. 218 pp. $2.00; SUPPLEMENT TO BANKING AND MONETARY STA- 10 or more to one address, $1.75 each. TISTICS. Sec. 1. Banks and the Monetary System. REAPPRAISAL OF THE FEDERAL RESERVE DIS- 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. 2. 1971, 173 pp. Vol. 3. 1972. 220 pp. Each $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. volume $3.00 each; 10 or more to one address, Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. $2.50 each. Sec. 10. Member Bank Reserves and Related Items. THE ECONOMETRICS OF PRICE DETERMINATION 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 CONFERENCE, October 30-31, 1970, Washington, pp. $.35. Sec. 12. Money Rates and Securities D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. 10 or more to one address, $4.50 each. Paper ed. 24 pp. $.35. Sec. 15. International Finance. 1962. $4.00 each; 10 or more to one address, $3.60 each. 92 pp. $.65. Sec. 16 (New). Consumer Credit. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- 1965. 103 pp. $.65. ERATE FLUCTUATIONS IN HOUSING CON- INDUSTRIAL PRODUCTION—1971 edition. 383 pp. STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 $4.00 each; 10 or more to one address, $3.50 each. or more to one address, $3.60 each. BANK MERGERS & THE REGULATORY AGENCIES: LENDING FUNCTIONS OF THE FEDERAL RESERVE APPLICATION OF THE BANK MERGER ACT OF BANKS: A HISTORY, by Howard H. Hackley. 1973. 1960. 1964. 260 pp. $1.00 each; 10 or more to 271 pp. $3.50 each; 10 or more to one address, one address, $.85 each. $3.00 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 85 STAFF ECONOMIC STUDIES FEDERAL FISCAL POLICY IN THE 1960's. 9/68. BUSINESS FINANCING BY BUSINESS FINANCE COM- Studies and papers on economic and financial subjects PANIES. 10/68. that are of general interest in the field of economic research. HOUSING PRODUCTION AND FINANCE. 3/69. REVISION OF WEEKLY SERIES FOR COMMERCIAL Summaries only printed in the BULLETIN BANKS. 8/69. EURO-DOLLARS: A CHANGING MARKET. 10/69. (Limited supply of mimeographed copies of full text available upon request for single copies) RECENT CHANGES IN STRUCTURE OF COMMER- CIAL BANKING. 3/70. THE DETERMINANTS OF A DIRECT INVESTMENT SDR's IN FEDERAL RESERVE OPERATIONS AND OUTFLOW WITH EMPHASIS ON THE SUPPLY OF STATISTICS. 5/70. FUNDS, by Frederic Brill Ruckdeschel. June 1973. MEASURES OF SECURITY CREDIT. 12/70. 171 pp. MONETARY AGGREGATES AND MONEY MARKET MORTGAGE COMMITMENTS ON INCOME PROPER- CONDITIONS IN OPEN MARKET POLICY. 2/71. TIES: A NEW SERIES FOR 15 LIFE INSURANCE COMPANIES, 1951-70, by Robert Moore Fisher and BANK FINANCING OF MOBILE HOMES. 3/71. Barbara Negri Opper. Aug. 1973. 83 pp. INTEREST RATES, CREDIT FLOWS, AND MONETARY THE IMPACT OF HOLDING COMPANY ACQUISITIONS AGGREGATES SINCE 1964. 6/71. ON AGGREGATE CONCENTRATION IN BANKING, TWO KEY ISSUES OF MONETARY POLICY. 6/71. by Samuel H. Talley. Feb. 1974. 24 pp. OPERATING POLICIES OF BANK HOLDING COMPA- SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. NIES—PART II: NONBANKING SUBSIDIARIES, by BANK RATES ON BUSINESS LOANS—REVISED Robert J. Lawrence. Mar. 1974. 59 pp. SERIES. 6/71. SHORT-RUN VARIATIONS IN THE MONEY STOCK- INDUSTRIAL PRODUCTION—REVISED AND NEW SEASONAL OR CYCLICAL? by Herbert M. Kauf- MEASURES. 7/71. man and Raymond E. Lombra. June 1974. 27 pp. REVISED MEASURES OF MANUFACTURING CAPAC- ITY UTILIZATION. 10/71. Printed in full in the BULLETIN REVISION OF BANK CREDIT SERIES. 12/71. PLANNED AND ACTUAL LONG-TERM BORROWING Staff Economic Studies shown in list below. BY STATE & LOCAL GOVERNMENTS. 12/71. (Except for Staff Papers, Staff Economic Studies, and ASSETS AND LIABILITIES OF FOREIGN BRANCHES some leading articles, most of the articles reprinted do OF U.S. BANKS. 2/72. not exceed 12 pages.) WAYS TO MODERATE FLUCTUATIONS IN THE CON- STRUCTION OF HOUSING. 3/72. REPRINTS CONSTRUCTION LOANS AT COMMERCIAL BANKS. 6/72. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. 6/72. SEASONAL FACTORS AFFECTING BANK RESERVES. BANK DEBITS. DEPOSITS, AND DEPOSIT TURN- 2/58. OVER-REVISED SERIES. 7/72. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen 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. REVISION OF CONSUMER CREDIT STATISTICS. Paper by Stephen H. Axilrod. 9/62. 10/72. MEASURES OF MEMBER BANK RESERVES. 7/63. SURVEY OF FINANCE COMPANIES, 1970. 11/72. REVISION OF BANK DEBITS AND DEPOSIT TURN- ONE-BANK HOLDING COMPANIES BEFORE THE 1970 OVER SERIES. 3/65. AMENDMENTS. 12/72. RESEARCH ON BANKING STRUCTURE AND PER- FORMANCE, Staff Economic Study by Tynan EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. Smith. 4/66. REVISION OF THE MONEY STOCK MEASURES AND A REVISED INDEX OF MANUFACTURING CAPACITY, MEMBER BANK RESERVES AND DEPOSITS. 2/73. Staff Economic Study by Frank de Leeuw with STATE AND LOCAL BORROWING ANTICIPATIONS Frank E. Hopkins and Michael D. Sherman. 11/66. AND REALIZATIONS. 4/73. REVISED SERIES ON COMMERCIAL AND INDUS- YIELDS ON RECENTLY OFFERED CORPORATE TRIAL LOANS BY INDUSTRY. 2/67. BONDS. 5/73. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE FEDERAL FISCAL POLICY, 1965-72. 6/73. BONDS. 8/67. SOME PROBLEMS OF CENTRAL BANKING. 6/73. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN CAPACITY UTILIZATION IN MAJOR MATERIALS IN- 1960-67. 4/68. DUSTRIES. 8/73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 FEDERAL RESERVE BULLETIN • OCTOBER 1974 CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- OPEN MARKET OPERATIONS IN 1973. 5/74. MERCIAL BANKS. 9/73. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI- ABLES AND THEIR ROLE IN MONETARY POLICY. RATES ON CONSUMER INSTALMENT LOANS. 9/73. 5/74. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. TREASURY AND FEDERAL RESERVE FOREIGN EX- 10/73. CHANGE OPERATIONS. INTERIM REPORT. 6/74. NEW SERIES FOR LARGE MANUFACTURING COR- BANKING AND MONETARY STATISTICS, 1973. Se- PORATIONS. 10/73. lected series of banking and monetary statistics for MONEY SUPPLY IN THE CONDUCT OF MONETARY 1973 only. 3/74 and 7/74. POLICY. 11/73. FINANCIAL DEVELOPMENTS IN THE SECOND U.S. ENERGY SUPPLIES AND USES, Staff Economic QUARTER OF 1974. 8/74. Study by Clayton Gehman. 12/73. TREASURY AND FEDERAL RESERVE FOREIGN EX- REVISION OF THE MONEY STOCK MEASURES AND CHANGE OPERATIONS. 9/74. MEMBER BANK DEPOSITS. 2/74. CHANGES IN TIME AND SAVINGS DEPOSITS AT RECENT DEVELOPMENTS IN THE U.S. BALANCE OF COMMERCIAL BANKS, OCTOBER 1973-JANUARY PAYMENTS. 4/74. 1974. 9/74. CHANGES IN BANK LENDING PRACTICES, 1973.4/74. INFLATION AND STAGNATION IN MAJOR FOREIGN CAPACITY UTILIZATION FOR MAJOR MATERIALS: INDUSTRIAL COUNTRIES. 10/74. REVISED MEASURES. 4/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 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 Bonds (See also U.S. Govt, securities): New issues, 40, 41, 42 Yields and prices, 30, 31 Employment, 52, 54 Branch banks: Assets, foreign branches of U.S. banks, 72 Liabilities of U.S. banks to their foreign branches and Farm mortgage loans, 44 foreign branches of U.S. banks, 24, 73 Federal agency obligations, 11, 12, 13 Brokerage balances, 71 Federal finance: Business expenditures on new plant and equipment, 43 Receipts and outlays, 34, 35 Business indexes, 52 Treasury operating balance, 34 Business loans (See Commercial and industrial loans) Federal funds, 7, 18, 20, 24, 29 Federal home loan banks, 39, 40 Capacity utilization, 52 Federal Home Loan Mortgage Corporation, 39, 44, 45 Capital accounts: Federal Housing Administration, 44, 45, 46 Banks, by classes, 16, 19, 24 Federal intermediate credit banks, 39, 40 Federal Reserve Banks, 12 Federal land banks, 39, 40, 44 Central banks, 77, 78 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Certificates of deposit, 24 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 15, 18, 27 U.S. Govt, securities held, 4, 12, 13, 36, 37 Weekly reporting banks, 20-24, 25 Federal Reserve credit, 4, 6, 12, 13 Commercial banks: Federal Reserve notes, 12 Assets and liabilities, 15, 16, 18, 19, 20 Federally sponsored credit agencies, 39, 40 Consumer loans held, by type, 47 Finance companies: Deposits at, for payment of personal loans, 26 Loans, 20, 48, 49 Loans sold outright, 27 Paper, 27, 29 Number, by classes, 16 Financial institutions, loans to, 18, 20 Real estate mortgages held, by type of holder and prop- Float, 4 erty, 44-46 Flow of funds: Commercial paper, 27, 29 Financial assets and liabilities, 59.14 Condition statements (See Assets and liabilities) Saving and financial flows, 58 Construction, 52, 53 Foreign: Consumer credit: Currency operations, 11, 12 Instalment credit, 47, 48, 49 Deposits in U.S. banks, 5, 12, 19, 23, 74 Noninstalment credit, 47 Exchange rates, 77 Consumer price indexes, 52, 55 Trade, 61 Consumption expenditures, 56, 57 Foreigners: Corporations: Claims on, 68, 69, 70, 74, 75, 76 Profits, taxes, and dividends, 43 Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Security issues, 41, 42 Security yields and prices, 30, 31 Gold: Cost of living (See Consumer price indexes) Certificates, 12 Currency and coin, 5, 9, 18 Earmarked, 74 Currency in circulation, 5, 14 Net purchases by United States, 62 Customer credit, stock market, 31, 32 Reserves of central banks and govts., 78 Stock, 4, 61 Debits to deposit accounts, 13 Government National Mortgage Assn., 44 Debt (See specific types of debt or securities) Gross national product, 56, 57 Demand deposits: Adjusted, commercial banks, 13, 15, 19 Housing permits, 52 Banks, by classes, 16, 19, 23 Housing starts, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 FEDERAL RESERVE BULLETIN • OCTOBER 1974 Income, national and personal, 56, 57 Real estate loans: Industrie production index^ 50, 51, 52 Banks, by classes, 18, 21, 32, 44 Instalment loans, 47, 48, 49 Mortgage yields, 45, 46 Insurance companies, 33, 36, 37, 44, 46 Type of holder and property mortgaged, 44-46 Insured commercial banks, 16, 18, 26 Reserve position, basic, member banks, 7 Interbank deposits, 16, 19 Reserve requirements, member banks, 9 Interest rates: Reserves: Bond and stock yields, 30 Central banks and govts., 78 Business loans by banks, 28 Commercial banks, 19, 22, 24 Federal Reserve Banks, 8 Federal Reserve Banks, 12 Foreign countries, 76, 77 Member banks, 5, 6, 15, 19 Money market rates, 29 U.S. reserve assets, 61 Mortgage yields, 45, 46 Residential mortgage loans, 45, 46 Prime rate, commercial banks, 28 Retail credit, 47, 48, 49 Time and savings deposits, maximum rates, 10 Retail sales, 52 International capital transactions of U.S., 63-76 International institutions, 62, 77, 78 Saving: Inventories, 56 Flow of funds series, 58 Investment companies, issues and assets, 42 National income series, 56, 57 Investments (See also specific types of investments): Savings and loan assns., 33, 37, 44, 46 Banks, by classes, 16, 18, 21, 22, 32 Savings deposits (See Time deposits) Commercial banks, 15 Savings institutions, principal assets, 32, 33 Federal Reserve Banks, 12, 13 Securities (See also U.S. Govt, securities): Life insurance companies, 33 Federally sponsored agencies, 39, 40 Savings and loan assns., 33 International transactions, 70, 71 New issues, 40, 41, 42 Labor force, 54 Yields and prices, 30, 31 Life insurance companies (See Insurance companies) Special Drawing Rights, 4, 12, 60, 61 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 16, 18, 20, 32 Deposits, i9, 23 Commercial banks, 15, 16, 18, 20, 25, 27, 28 Holdings of U.S. Govt, securities, 36, 37 Federal Reserve Banks, 4, 6, 8, 12, 13 New security issues, 40, 41 Insurance companies, 33, 46 Ownership of securities of, 18, 22, 32 Insured or guaranteed by U.S., 44, 45, 46 Yields and prices of securities, 30, 31 Savings and loan assns., 33 State member banks, 17, 26 Stock market credit, 31, 32 Manufacturers: Stocks (See also Securities): Capacity utilization, 52 New issues, 41, 42 Production index, 51, 52 Yields and prices, 30, 31 Margin requirements, 10 Member banks: Tax receipts. Federal, 35 Assets and liabilities, by classes, 16, 18 Time deposits, 10, 15, 16, 19, 23 Borrowings at Federal Reserve Banks, 6, 12 Treasury currency, Treasury cash, 4, 5 Number, by classes, 16 Treasury deposits, 5, 12, 34 Reserve position, basic, 7 Treasury operating balance, 34 Reserve requirements, 9 Reserves and related items, 4, 6, 15 Unemployment, 54 Mining, production index, 51 U.S. balance of payments, 60 Mobile home shipments, 53 U.S. Govt, balances: Money market rates (See Interest rates) Commercial bank holdings, 19, 23 Money stock and related data, 14 Member bank holdings, 15 Mortgages (See Real estate loans and Residential mortgage Treasury deposits at Reserve Banks, 5, 12, 34 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 16, 18, 21, 32, 36, 37 Mutual savings banks, 23, 32, 36, 37, 44, 46 Dealer transactions, positions, and financing, 38 Federal Reserve Bank holdings, 4, 12, 13, 36, 37 National banks, 16, 26 Foreign and international holdings, 12, 68, 70, 74 National defense expenditures, 35 International transactions, 68, 70 National income, 56, 57 New issues, gross proceeds, 41 Nonmember banks, 17, 18, 19, 26, 79 Open market transactions, 11 Outstanding, by type of security, 36, 37 Open market transactions, 11 Ownership, 36, 37 Yields and prices, 30, 31 Payrolls, manufacturing index, 52 Utilities, production index, 51 Personal income, 57 Prices: Veterans Administration, 44, 45, 46 Consumer and wholesale commodity, 52, 55 Security, 31 Prime rate, commercial banks, 28 Weekly reporting banks, 20-24 Production, 50, 51, 52 Profits, corporate, 43 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 August 1 973 'Dmnw bt/ H. W. gaCvin, Cart iv (c THE FEDERAL RESERVE SYSTEM c) ^ Q HAWAII SD 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