Federal Reserve Bulletin, 1974-11

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

A copy of the Federal Reserve BULLETIN is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The BULLETIN may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In the two-tone reproduction of the photograph, the gray color is printed as a combined "line conversion" with a light-value halftone and the orange is overprinted with a darker-value halftone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 11 • VOLUME 60 • NOVEMBER 1974 CONTENTS 745 Financial Developments in the Third Quarter of 1974 755 Membership of the Board of Governors of the Federal Reserve System 757 Statement to Congress 764 Record of Policy Actions of the Federal Open Market Committee 771 Law Department 799 Announcements 803 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 Lyle E. Gramley Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the Third Quarter of 1974 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in financial markets during the summer and early fall. Most market rates of interest reached their highest levels of the year during the summer, but they declined subsequently when pressures on credit markets ebbed. By the end of October, yields on private short-term money market instruments had fallen 3 or more percentage points from their July-August peaks. Long-term interest rates stabilized in the latter part of the third quarter and in some sectors registered small declines in September and October. The persistence of relatively high long-term rates despite the substantial decline in short-term rates mainly reflected the continued strength of inflationary expectations and the heavy demands of corporations and of State and local governments in the bond markets. The easing of short-term rates was caused partly by a fall-off in short-term credit demands by businesses. With loan demands on banks reduced in late summer and early fall, and with Federal Reserve open market operations also somewhat more accommodative, the Federal funds rate—the rate at which banks can borrow reserve funds from one another on an overnight basis—fell from 13V2 per cent in early July to 93A per cent in late October. On September 4, the Federal Reserve Board eliminated the 3 per cent supplementary reserve requirement on large-denomination time deposits and related instruments with maturities of 4 months or more. This action was intended primarily to provide an incentive for member banks to reduce their reliance on short-dated money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 INTEREST RATES •Level of series was affected by issue of new 20-year U.S. Govt, bond in January 1973. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; Prime commercial paper, dealer offering rates; Conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to an Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. market liabilities, but it also released $500 million of reserves and permitted an expansion in member bank loans and investments of a like amount. Measured on a quarterly average basis, the narrowly defined money stock, M increased at about a 3V£ per cent annual rate 1? from the second to the third quarter; in contrast, the rate of advance between the fourth quarter of 1973 and the second quarter of 1974 had been about 6V2 per cent. The slowing of M growth reflected x in part the cumulative impact of monetary restraint and rising interest rates earlier in the year on the public's willingness to hold cash balances. Growth in money stock aggregates more broadly defined to include time and savings deposits—other than large negotiable certificates of deposit—at commercial banks and deposits at thrift institutions also slowed in the third quarter, as savers diverted funds to market instruments in response to the relatively high yields available. However, the subsequent decline in market yields helped to bring about some improvement in net flows to consumer-type time and savings accounts at depositary institutions in October. Over the first three quarters of the year, M grew at x a 5V2 per cent annual rate, Af at an 8 per cent rate, and M at 2 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q3 1974 747 a IV2 per cent rate—in each case, a somewhat slower growth than had taken place during 1973. MEMBER BANK The Federal funds rate rose in early July from 12 per cent to 13!^ RESERVES per cent, as some banks apparently sought to reduce borrowings and to increase excess reserves in an environment in which financial market uncertainties had grown, owing in part to the financial problems of a few domestic and foreign banks and to oil-related international capital flows. The tightening of money market conditions was temporarily exacerbated by portfolio adjustments over the period around the midyear bank statement date and the July 4 holiday. Credit market tensions soon began to ease, however, and with market confidence bolstered by the commitment of the Federal Reserve to provide necessary liquidity, the Federal funds rate declined, essentially without interruption, after mid-July. Between June and September, reserves available to support private nonbank deposits expanded at a seasonally adjusted annual rate of 9.1 per cent. This was well below the exceptional 19.1 per cent annual rate of increase during the preceding quarter, the deceleration being associated with a much reduced growth of nonmonetary liabilities—primarily large CD's—in the third quarter. Nonborrowed reserves grew at a faster rate in the third quarter than in the second. In the second quarter, the injection of reserves through open market operations had been reduced largely to offset the increased provision of reserves through the discount window associated with special borrowing by Franklin National Bank. DEPOSIT FLOWS Despite the growth of reserves, M increased little during the third x quarter. Measured on a quarterly average basis, M expanded at x a 3.6 per cent annual rate; on an end-month-of-quarter basis, the rate of advance was only 1.6 per cent. The private demand deposit component rose little during the summer; the currency component—which is more sensitive to changes in current-dollar expenditures than to changes in interest rates—accounted for nearly all of the small increase in M. t The high interest rates prevailing during the quarter also retarded the growth of time and savings deposits other than large CD's. Because ceiling rates on consumer-type deposits at banks were below yields on market debt instruments, savers shifted a significant volume of funds into market instruments—both traditional fixedrate securities and the new variable-rate bonds—and into liquid asset mutual funds. As a result, growth of small-denomination time and savings deposits slowed from the second-quarter pace and contributed to the reduction in M growth from an 8.2 per cent 2 annual rate in the second quarter to a 6.2 per cent rate in the third. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 CONCEPTS OF MONEY E 1000 Seasonally adjusted monthly averages. Mx is currency plus private demand deposits adjusted. M2 is M, plus commercial bank time and savings deposits adjusted other than large CD's. M3 is Af2 plus deposits at mutual savings banks and savings and loan associations. Banks greatly reduced their reliance on large CD's and on nondeposit liabilities during the third quarter. Nondeposit funds, in fact, contracted slightly between June and September. Borrowing from foreign branches was discouraged during this period by the relatively large spread between Euro-dollar and domestic interest rates. Large CD's outstanding increased $3.5 billion, seasonally adjusted, and the expansion was concentrated in large money market banks to a somewhat greater extent than it had been during comparable periods in recent years. In an atmosphere of heightened public concern about the stability of financial institutions, there apparently was an increased preference by some investors for the liabilities of a small number of the largest commercial banks. Nonbank thrift institutions—savings and loan associations and mutual savings banks—experienced even greater pressures of disintermediation than did commercial banks. Deposit withdrawals NONBANK SAVINGS ACCOUNTS substantially exceeded inflows of new money to thrift institutions v during the third quarter. Including interest credited and apart from normal seasonal variation, however, total deposits of the nonbank thrift institutions expanded at a 2.4 per cent annual rate from the 4 end of June to the end of September. This was slower than the 3.3 per cent rate of increase in the second quarter, and it contributed 0 • to the decline in M growth from a 7.3 per cent rate in the second 3 quarter to a 5.2 per cent rate in the third. Seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q3 1974 749 TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES1 In per cent, seasonally adjusted annual rates 1974 11997733 IItteemm 11997722 11997733 QQ44 Q1 Q2 Q3 Member bank reserves: Total 10.6 7.8 6.7 1.3 20.1 8.2 N on borrowed 7.7 7.2 13.9 1.2 .8 5.6 Available to support private nonbank deposits2 10.0 9.3 2.4 5.7 19.1 9.1 Concepts of money3 calculated from: End-month of quarter— MX 8.7 6.1 8.7 5.5 6.5 1.6 M2 11.1 8.8 10.8 9.3 7.7 4.6 M3 13.1 8.8 9.8 8.8 6.4 4.0 Quarterly average— M, 7.7 6.3 5.0 5.8 7.2 3.6 M2 10.9 8.9 8.9 9.6 8.2 6.2 M3 12.9 8.9 7.9 9.1 7.3 5.2 Time and savings deposits at: Commercial banks (other than large CD's) 13.5 11.4 12.6 12.8 8.6 7.3 Nonbank thrift institutions 16.7 8.6 8.1 7.9 3.9 3.1 Bank credit proxy, adjusted4 11.3 10.4 3.1 8.2 20.4 6.6 MEMO (Change in billions of dollars, seasonally adjusted): Large CD's 10.4 19.9 -2.3 4.2 13.3 3.5 U.S. Govt, demand deposits at all member banks ... -.2 -1.7 -1.5 -.7 2.1 1.0 1 Incorporates revisions in money stock and related measures based on new benchmark data for nonmember banks and revisions in seasonal adjustment factors. 2Total reserves less required reserves for U.S. Govt, and interbank deposits. 3Mt is currency plus private demand deposits adjusted. M2 is Mx plus bank time and savings deposits adjusted other than large CD's. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 4Total member bank deposits plus funds provided by Euro-dollar borrowings and bank related commercial paper. NOTE.—Changes are calculated from the average amounts outstanding in the last month of each quarter, except the quarterly average calculation of concepts of money, which are based on changes in the average amounts outstanding for a quarter. Annual rates of growth have been adjusted for changes in reserve requirements. BANK CREDIT AND Total loans and investments at commercial banks rose $9.5 billion COMMERCIAL PAPER during the third quarter. This gain was sharply smaller than the $19.9 billion increase during the preceding quarter and reflected primarily the liquidation of a substantial volume of U.S. Treasury securities. The cautious attitude of investors resulted in a widening of risk premiums in market interest rates, including the yield spread between private and Treasury securities. Rates on Treasury securities were 3 or more percentage points below rates on short-dated CD's during much of the period, and banks therefore may have regarded sales and redemptions of Treasury securities as a more desirable source of funds for loans. Bank holdings of other securities were approximately unchanged between June and September. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 BANK CREDIT Growth of total loans outstanding at commercial banks was COMPONENTS strong in July and August, but it slackened markedly in September. J.S. GOVT. SECURITIES The pattern largely reflected the behavior of business loans, but n some other major loan categories also weakened in the final month of the quarter. While more stringent lending policies at banks may have played a role in the slowing of loan growth, important forces tending to reduce demands for bank credit were also at work. iOnTHER SECURITIES Relative movements in interest rates contributed significantly to 4 the sharp decline in business loan growth in September. Other ,n 1 1 0 short-term rates had continued to rise after the Federal funds rate TOTAL LOANS 20 peaked in mid-July, but by late August they too had begun to fall. The 3-month Treasury bill rate declined from just under 10 1 L per cent to about 6V2 per cent in early October, before rising to nearly 8 per cent in late October. Rates on large CD's fell from about 12 per cent in August to less than 9 per cent in late October. The commercial bank prime rate also moved downward, but by a relatively small amount and with a lag compared with the decline in market rates. As a consequence, prime borrowers shifted a Seasonally adjusted. Loans adjusted for transfers between banks and their substantial share of their short-term credit demands to the commerholding companies, affiliates, subsidiaries, or foreign branches. cial paper market. Dealer-placed commercial paper outstanding rose more in September than it had in any month since February. TABLE 2 RATE SPREADS AND CHANGES IN BUSINESS LOANS AND COMMERCIAL PAPER Change (billions of dollars)1 SSpprreeaadd ((bbaassiiss ppooiinnttss))——pprriimmee AAnnnnuuaall rraattee PPeerriioodd rraattee lleessss 3300--5599 ddaayy Business Dealer- ooff cchhaannggee iinn ccoommmmeerrcciiaall ppaappeerr loans at all placed ttoottaall aammoouunntt rraattee commercial commercial Total ((ppeerr cceenntt)) banks2 paper3 1974—Q1 9.5 1.3 10.8 25.3 Q2 9.6 .4 10.0 22.1 Q3 6.2 2.4 8.6 18.0 July 4 3.3 .7 4.0 25.1 Aug 22 2.9 .3 3.2 19.7 Sept 53 .0 1.4 1.4 8.5 1 Seasonally adjusted. 2 Based on last-Wednesday-of-month data; adjusted for outstanding amounts of loans sold to affiliates. 3 Measured from end-of-month to end-of-month. In addition to the shifting of business credit demands from banks to market sources, there appears to have been at least a moderate diminution in total short-term credit demands by businesses in the latter part of the third quarter. The sum of bank business loans and of dealer-placed paper increased in September at its slowest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q3 1974 751 BANK LOANS rate of the year. The continued weakness in economic activity may MAJOR COMPONENTS have reduced short-term credit demands. BUSINESS Bank loans to nonbank financial institutions rose strongly in July and August. They then declined on a seasonally adjusted basis in September, again reflecting the drop in commercial paper rates relative to bank lending rates. Finance companies borrowed heav- REAL ESTATE H i m, ily in the commercial paper market in September, and directly placed paper recorded its largest increase of the year during the CONSUMER July-September period. During July and August, consumer credit growth increased. The n n, announcement of higher prices on 1975-model cars encouraged NOnNBA NK,_ FIN,ANCIAL n consumers to step up their purchases of the remaining 1974 models. [ I An increase in auto loans was a major ingredient in the rise between Q3 Q4 | Q1 Q2 Q3 the second and third quarters in the rate of growth of consumer Seasonally adjusted. "Business" loans at commercial banks. More recently, growth in consumer adjusted for transfers between banks credit has slackened again. and their holding companies, affiliates, subsidiaries, or foreign Real estate loans at banks slowed to a 6 per cent annual rate branches. of increase in the third quarter. This slowing, of course, reflected the sharp cutback in residential construction and home purchases as the year progressed. Also, almost one-third of the States have usury ceilings below 10 per cent, discouraging banks in those States from making residential mortgage loans because of more attractive lending alternatives available. MORTGAGE DEBT Net mortgage debt formation slowed markedly in the third quarter, as net flows of credit from nonbank thrift institutions—as well as from commercial banks—declined. Moreover, the weakness of deposit flows in the July-September period led savings associations to reduce further their commitments to make mortgage loans on residential properties in future months. Direct and indirect support by Federally sponsored credit agencies—including $3.1 billion of advances from Federal home loan banks to savings and loan associations—accounted for an exceptionally large proportion of the increase in mortgage debt outstanding. Several special programs, announced by the administration in May, augmented the regular support operations of these agencies. Residential mortgage rates in the primary market rose steadily between June and September, but the average rate on new commitments for conventional mortgages on new homes appeared to stabilize in October at just below 10 per cent. The average yield in the Federal National Mortgage Association's auction of commitments to purchase conventional home mortgages reached 10.71 per cent in September; by late October it had declined 60 basis points, as many market participants were encouraged by the decline in other rates of interest and became more optimistic about the prospects for a significant easing of mortgage credit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 TABLE 3 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted annual rates 1973 1974 CChhaannggee—— Q3 Q4 Qi Q2 Q3e By type of debt: Total 71 58 59 65 50 Residential 51 38 40 44 34 Other1 20 20 19 21 16 At selected institutions: Commercial banks 21 18 13 16 9 Savings and loans 25 12 22 25 15 Mutual savings banks 5 5 4 3 2 Insurance companies 5 7 4 6 5 FNMA—GNMA 7 3 2 8 8 MEMO: FHLB advances to S&L's 8 3 6 10 6 1 Includes commercial and other nonresidential as well as farm properties. ePartially estimated. SECURITIES MARKETS Despite the decline in interest rates on short-term market instruments, corporate bond rates trended upward throughout the quarter. The average rate on new Aaa-rated utility issues reached 10.61 per cent in the first week of October, more than 1 percentage point above the level in late June. However, the average fell below 10 per cent in late October in the face of a record volume of new issues, as the drop in short-term rates induced some investors to lengthen the average maturities of their purchases and as economic activity slackened further. The volume of long-term bonds sold by corporations during the third quarter was the smallest since the final quarter of 1966. Public utilities and communications firms accounted for the preponderance of the debt issued, and the remainder consisted largely of floatingrate notes of bank holding companies. A number of manufacturing firms postponed long-term, fixed-rate financings in the hope that long-term interest rates would follow short-term rates downward. Some of these firms subsequently did schedule offerings when the market rallied in October. Stock issuance remained light in the July-September period; with share prices declining to a 12-year low, equity funds were costly and new stock issues were limited primarily to public utilities with debt-laden balance sheets. Yields on State and local government bonds rose about 3A of a percentage point to reach a peak in late August; they then declined nearly Vi of a percentage point before firming in mid-October. Statutory interest rate ceilings prevented some units from selling bonds during the third quarter, and some other units volitionally postponed issues in anticipation of lower rates. As a result, bond sales by State and local governmental units declined in the quarter to the smallest volume since the spring of 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q3 1974 753 TABLE 4 OFFERINGS OF NEW SECURITY ISSUES In billions of dollars, seasonally adjusted annual rates 1973 1974 TTyyppee ooff iissssuuee Q3 Q4 Ql Q2 Q3e Corporate securities-—Total 30 38 38 35 22 Bonds • 23 26 30 30 17 Stocks 1. 8 12 8 5 5 State and local government bonds 23 26 23 26 18 e Estimated. NOTE.—Details may not add to totals because of rounding. In July yields on short-term Treasury issues declined slightly while private money market rates were rising. Demand for Treasury securities was enhanced by the desire of some investors to shift into assets free of default risk. The tensions that created this preference began to abate in August, and at the same time new Treasury security offerings created temporary supply pressures. Treasury bill rates rose during the month; but when the market congestion was relieved in September by redemptions of maturing issues and domestic and foreign official purchases of marketable obligations, Treasury bill yields declined sharply along with private money market rates. Longer-term Treasury yields fluctuated over a much narrower range, rising about V2 of a percentage point by late August and then declining about XA of a percentage point by mid-October. TABLE 5 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals, in billions of dollars, not seasonally adjusted 1973 1974 IItteemm Q3 Q4 Ql Q2 Q3 Budget surplus, or deficit -1.1 -5.0 -7.1 9.7 -1.6 Net cash borrowings, or repayments (—) -.7 6.7 3.4 -6.4 4.5 Check float and misc. items1 -2.5 .4 1.7 -2.5 -3.4 Change in cash balance -4.3 2.1 -2.0 .8 -.5 MEMO: Net borrowings by Federally sponsored credit agencies2 .. 6.1 3.2 5.5 7.1*' 1 Checks issued less checks paid, outlays of off-budget Federal agencies, accrued items, and other transactions. 2Includes debt of the Federal Home Loan Mortgage Corporation, Federal home loan banks, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and securities guaranteed by GNMA). e Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 The Federal Government sold $4.5 billion of debt, net, during the third quarter to offset a modest seasonal budget deficit and a decline in check float. Contrary to market expectations, foreign governments redeemed a small volume of special nonmarketable Treasury issues during the period; however, foreign official purchases of marketable obligations were substantial. The Federally sponsored credit agencies continued to borrow heavily, as they sought funds to channel into the residential mortgage market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

755 Membership of the Board of Governors of the Federal Reserve System, 1913-74 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936, when his successor took office. Paul M. Warburg New York do. Term expired Aug. 9, 1918. Frederic A. Delano Chicago do. Resigned July 21, 1918. W. P. G. Harding Atlanta do. Term expired Aug. 9, 1922. Adolph C. Miller San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936, when his successor took office. Albert Strauss ,.. New York .. Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah ... Chicago Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt .. New York ... June 8, 1920 Reappointed in 1928. Resigned Sept 14, 1930. David C. Wills .. Cleveland Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis .. .. May 12, 1921 Resigned May 12, 1923. Milo D. Campbell .. Chicago Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger .. Cleveland May 1, 1923 Resigned Sept. 15, 1927. George R. James .. St. Louis May 14, 1923 Reappointed in 1931. Served until Feb 3, 1936, when his successor took office. Edward H. Cunningham ..Chicago do. Died Nov. 28, 1930. Roy A. Young Minneapolis Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York Sept. 16, 1930 Resigned May 10, 1933. Way land W. Magee Kansas City May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak Chicago June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas Kansas City do. Served until Feb. 10, 1936, when his successor took office. Marriner S. Eccles San Francisco ..Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York Feb. 3, 1936 Resigned Sept. 30, 1937. John K. N Cleveland do Served until Apr. 4, 1946, when his , successor took office. Ronald Ransom AAttllaannttaa do Reappointed in 1942. Died Dec. 2, 1947. Dallas Feb. 10, 1936 Resigned July 9, 1936. Richmond June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. New York Mar. 30, 1938 Served until Sept. 1, 1950, when his successor took office. Richmond Mar. 14, 1942 Served until Aug. 13, 1954, when his successor took office. James K. Vardaman, Jr. St. Louis Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton .. Boston Feb. 14, 1947 Died Dec. 4, 1949. Philadelphia .. .. Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta SSeepptt.. 1, 1950 Resigned Jan. 31, 1952. Oliver S. I Minneapolis do Resigned June 30, 1952. For notes see p. 756. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Appointive members1—Continued Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Wm. McC. Martin, Jr. . .. New York Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. Term expired Jan. 31, 1970. A. L. Mills, Jr . San Francisco . . Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson .. Kansas City ... do Reappointed for term beginning Feb. 1, 1964. Resigned Apr. 30, 1973. Paul E. Miller Minneapolis ... . Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston Philadelphia ... . Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson ..Dallas Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr .. Atlanta Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell .. Chicago • Aug. 31, 1961 Reappointed for term beginning Feb. 1, 1962. J. Dewey Daane .. Richmond Nov. 29, 1963 Served until Mar. 8, 1974, when his successor took office. Sherman J. Maisel San Francisco . . Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer . . . Philadelphia ... . Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill ..Dallas . May 1, 1967 Reappointed for term beginning Feb. 1, 1968. Resigned Nov. 15, 1971. Arthur F. Burns .. New York . Jan. 31, 1970 Term began Feb. 1, 1970. John E. Sheehan .. St. Louis Jan. 4, 1972 Jeffrey M. Bucher San Francisco . . June 5, 1972 Robert C. Holland Kansas City ... . June 11, 1973 Henry C. Wallich .. Boston Mar. 8, 1974 Philip E. Coldwell ..Dallas Oct. 29, 1974 CHAIRMEN3 VICE CHAIRMEN3 Charles S. Hamlin ...Aug. 10, 1914-Aug. 9,1916. Frederic A. Delano... Aug. 10, 1914-Aug. 9,1916. W. P. G. Harding ...Aug. 10, 1916-Aug. 9,1922. Paul M. Warburg Aug. 10, 1916-Aug. 9,1918. Daniel R. Crissinger May 1, 1923-Sept. 15,1927. Albert Strauss Oct. 26, 1918-Mar. 15,1920. Roy A. Young Oct. 4, 1927-Aug. 31,1930. Edmund Piatt July 23, 1920-Sept. 14,1930 Eugene Meyer Sept. 16, 1930-May 10.1933. J. J. Thomas Aug. 21, 1934-Feb. 10,1936 Eugene R. Black May 19, 1933-Aug. 15.1934. Ronald Ransom Aug. 6, 1936-Dec. 2,1947. Marriner S. Eccles ..Nov. 15, 1934-Jan. 31,1948. C. Canby Balderston Mar. 11, 1955-Feb. 28,1966. Thomas B. McCabe .. Apr. 15, 1948-Mar. 31,1951. J. L. Robertson Mar. 1, 1966-Apr. 30,1973. Wm. McC. Martin, Jr. Apr. 2, 1951-Jan. 31,1970. George W. Mitchell.. May 1, 1973- Arthur F. Burns Feb. 1, 1970- EX-OFFICIO MEMBERS1 SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo Dec. 23, 1913-Dec. 15,1918. John Skelton Williams Feb. 2, 1914-Mar. 2,1921. Carter Glass Dec. 16, 1918-Feb. 1,1920. Daniel R. Crissinger Mar. 17, 1921-Apr. 30,1923. David F. Houston ...Feb. 2, 1920-Mar. 3,1921. Henry M. Dawes ... .May 1, 1923-Dec. 17,1924. Andrew W. Mellon ..Mar. 4, 1921-Feb. 12,1932. Joseph W. Mcintosh Dec. 20, 1924-Nov. 20,1928. Ogden L. Mills Feb. 12, 1932-Mar. 4,1933. J. W. Pole Nov. 21, 1928-Sept. 20,1932. William H. Woodin Mar. 4, 1933-Dec. 31,1933. J. F. T. O'Connor ..May 11, 1933-Feb. 1,1936. Henry Morgenthau, Jr.Jan. 1, 1934-Feb. 1, 1936. 1 Under the provisions of the original Federal Reserve Act the members; that the Secretary of the Treasury and the Comptroller Federal Reserve Board was composed of seven members, in- of the Currency should continue to serve as members until Feb. cluding five appointive members, the Secretary of the Treasury, 1, 1936; that the appointive members in office on the date of who was ex-officio chairman of the Board, and the Comptroller that Act should continue to serve until Feb. 1, 1936, or until of the Currency. The original term of office was 10 years, and their successors were appointed and had qualified; and that the five original appointive members had terms of 2, 4, 6, 8, thereafter the terms of members should be 14 years and that the and 10 years, respectively. In 1922 the number of appointive designation of Chairman and Vice Chairman of the Board should members was increased to six, and in 1933 the term of office be for a term of 4 years. was increased to 12 years. The Banking Act of 1935, approved 2Date after words "Resigned" and "Retired" denotes final Aug. 23, 1935, changed the name of the Federal Reserve Board day of service. to the Board of Governors of the Federal Reserve System and Chairman and Vice Chairman were designated Governor and provided that the Board should be composed of seven appointive Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

757 Statement to Congress Statement by Henry C. Wallich, Member, likely to reflect past high rates of inflation, it Board of Governors of the Federal Reserve will take the strongest determination to deal System, before the Permanent Subcommittee on firmly with this problem. After having already Investigations, Committee on Government had a massive upward thrust to inflation rates Operations, £/.S\ Senate, October 16, 1974. from the rising cost of oil, it is additionally harmful to be confronted with the constant threat I am happy to respond to your request for that oil prices might be pushed up even further. comments on the wide range of issues involved There is absolutely no justification for the inin dealing with the inflated cost of oil. Your creases of last year, much less for further inquestions established a broad framework for this creases, either in terms of rising costs of prodiscussion, and I will generally follow their duction in OPEC countries or in terms of the order in responding. I intend to concentrate, rise that has occurred in the cost of OPEC however, on those aspects of the problem that imports. The prices of other goods have not fall most clearly within my knowledge and risen even over several years in a manner to within the responsibilities of the Federal Re- justify the 1973-74 increases in oil prices. serve. Moreover, a very considerable part of the in- Your first set of questions relates to the fi- creases in prices in the past year and of the nancial and economic consequences of import- increases that may come in the year ahead, in ing oil at current prices of the Organization of the over-all price level for food, industrial ma- Petroleum Exporting Countries (OPEC). Much terials, and other goods produced in the oilhas already been said about the severe direct consuming countries, is a direct consequence of economic impacts of the enormous sudden jump the boost in their cost of oil. The OPEC counin oil prices imposed by the OPEC countries. tries themselves are a principal driving force in These consequences would be severe at any the inflationary spiral. If there is a single action time, but they are especially disruptive now that could dramatically improve the world's because they add very significantly to the infla- economic outlook, it would be a substantial cut tionary pressures generated by the worldwide in the price of oil. Without such a cut, the boom that got started in 1972. Moreover, the outlook remains very disquieting. need to adjust to these higher payments in- Apart from its serious inflationary effects, the creases the possibility of recessionary tenden- jump in oil prices has had a depressing effect cies in particular countries, and because of the on economic activity as consumers use more disruption of balance of payments and threats of their current incomes and savings to pay for of currency instability, it interferes with oil and oil-related products and services. This progress toward a better basis for the world's could be offset by an increase in investment. monetary system. A shift in the use of aggregate national output The dangers of escalating inflation are still toward investment, including especially investpresent in many parts of the world. The Orga- ment to develop our energy resources, would nization for Economic Cooperation and Devel- have been desirable in any event. But it is very opment (OECD) has recently reported that con- costly to have to make this shift under the sumer prices in OECD countries were Wh per pressures of an abrupt rise in energy costs. cent higher this August than a year ago. In the Finally, as I shall discuss later, some of the June-August period there was some slowing— consuming countries will have very serious to an annual rate of 12 per cent—but with food problems of adjustment because of the strain on prices rising again and new wage contracts their over-all balance of payments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 I turn now to the international trade aspects It is difficult to foresee the ways in which of the problem. In the short run, the higher the OPEC countries will dispose of their funds revenues of the oil producers go mainly into over the next few years. It will probably also financial assets. This is because imports of these be difficult to keep track of these funds as they countries start from a relatively small base, and move through various market channels. Some even very rapid expansion still leaves a sub- of the current accruals are placed directly in the stantial trade surplus for them. We understand domestic capital markets of the United States that the Treasury will be supplying some esti- and the United Kingdom or into such visible mates of the magnitudes of these transactions. channels as bilateral loans to governments in We might note that imports of these countries consuming countries or the regional or multitotaled under $25 billion in 1973; indications lateral lending institutions. The greater part so are that they are growing by 50 per cent this far has been going into the Euro-currency maryear and may well grow as rapidly next year. ket, where it is available to any creditworthy Even so, if their annual revenues from oil ex- borrowers. Yet another channel is the flow of ports are sustained at something like a $100 funds through the multinational petroleum combillion level, OPEC countries would still have panies that still handle the purchase and sale a trade surplus of some $40 billion to $50 billion of most of the oil that is produced. in 1975. The Treasury has recently issued some esti- Oil-exporting countries will now be able to mates of the flows of funds by OPEC countries buy much more of the equipment and technol- in the first 8 months of the year that indicate ogy needed to diversify their economies, and the OPEC countries have placed about onethey should also be able to raise the standards quarter of their reserve gains of $25 billion to of living of their populations by bringing in $28 billion in U.S. liquid assets, a smaller more consumer goods of all kinds. It is reason- amount in sterling assets in the United Kingable for these developments to be going forward dom, and the remainder in the international in areas where there is abundant energy, and markets. This pattern could change in response I certainly hope they will be successful. At the to relative market yields and to the diminishing same time the additional demand on the rest of ability of particular markets and institutions to the world for capital equipment and technical absorb funds of this type, or because of certain skills, while it may seem marginal in the aggre- preferences the individual OPEC countries may gate, would not be easy to accommodate when have. capacity is already strained in these critical areas. Regarding efforts to monitor these funds, both For particular oil-importing countries the the United States and the United Kingdom have need to pay much more for oil and also for food regular reporting mechanisms identifying the and other commodities is already forcing a nationality of the holders of certain assets held choice between seeking unprecedented amounts by foreigners. Of course, we have full informaof external financing or somehow reducing their tion on funds kept with the Federal Reserve trade deficits and limiting or even cutting back Banks. Commercial banks in the United States their real consumption levels. This immediate report monthly the deposit and other liabilities impact on some countries and the inflationary that they owe to foreigners, the financial assets consequences everywhere are the main eco- that foreigners keep with them, and the liabilinomic issues that need to be dealt with for the ties owed to foreigners by customers of the short run. banks that the banks can report on. Until now Turning to problems of the financial flows most of the oil-exporting countries have not themselves, there are questions of immediate been separately identified in these monthly bank adjustments to be dealt with by financial markets reports, but good estimates can be made of the and banking institutions as well as the pressures liabilities owed to the oil-exporting countries as that will mount over time if this new set of asset a group. Beginning with the figures for Sepholders becomes a major force in international tember 30, the banks will report liabilities to and national capital markets. each of the oil-exporting countries separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 759 In addition to the bank-reported liabilities, mulation of debts piled on debts that will be there are monthly figures on foreign purchases quite different from a simple intermediation and sales of U.S. corporate stocks and bonds process. and Treasury securities, and quarterly reports Up to the present the international banking on the foreign liabilities of nonbanking con- system does not appear to have been overcerns. Again, none of these show most of the strained by the process of receiving and lending oil-exporting countries separately, and in any surplus oil revenues. Although there have been case the reports show only the country from a few banks abroad that have closed in recent which the orders were placed. months, this has reflected over-extended The Bank of England has begun to publish foreign-exchange dealings and poor managemonthly data on sterling liabilities to oil-ex- ment or the stresses of policy-induced credit porting countries as a group. They show hold- tightening rather than the recycling process. ings of British Government bonds and money However, in a longer perspective there is market instruments by central monetary institu- room for doubt that banks will be able to handle tions in those countries and holdings of money so large a fraction of persistent flows of this market instruments by other types of holders. type. Banks are limited in the volume of depos- For the Euro-currency market, the only pub- its they can safely accept by the need to maintain lished source of current information is the an appropriate relationship between their capital monthly country breakdown of foreign-currency accounts and their over-all liabilities or assets. deposits with banks in the United Kingdom, Retained earnings are unlikely to supply capital published quarterly by the Bank of England, funds sufficiently fast. which shows many of the oil exporters separa- Apart from maintaining the adequacy of tely and the Middle East oil exporters as a banks' capital, over-all stability of the banking group. The Bank for International Settlements system requires avoiding severe mismatching of collects data on the Euro-currency market as a maturities of banks' liabilities and assets. Recywhole, which are published in the BIS Annual cling of surplus oil funds has so far meant that Report, and they are available to governments the banks have issued liquid liabilities to oil-exmore currently. These data do not provide a porting countries while granting longer-term detailed country breakdown of funds from the credits to oil importers. As balance sheet totals oil-exporting countries. grow, so does the potential for a large absolute There are, of course, a great many kinds of gap between a bank's short-term liabilities and investments that would not be covered by these its longer-term assets. While the extension of reporting systems directed mainly to commer- credit on the basis of deposits of shorter maturity cial banks. We are pleased to see and support is the essence of banking, a cause for concern the efforts of the Department of Commerce and about the liquidity of a bank arises if the deposit the Department of the Treasury to undertake base consists too largely of short-term interestcomprehensive new studies that will improve sensitive funds, or of funds belonging to only our current and future information on foreign a few large depositors, or of funds that may investments here as either controlling interests move quickly in response to potential exor portfolio investments in U.S. businesses and change-rate movements. For some time the in such assets as real property or mortgages. Federal Reserve has been stressing the need for Your next set of questions refers to the expe- banks to review their capital adequacy, and we rience of private financial institutions in recy- have been concerned that domestically banks cling funds. I might say that the term "recy- should hold down their reliance on a potentially cling" is appropriate, if at all, only in the sense unstable base of borrowed funds—so-called liathat the OPEC countries cannot avoid placing bility management. Clearly the question of their surplus funds somewhere—but it tends to banking stability is sharpened for individual obscure the fact that the financing of deficits banks, and for the whole system, if banks conof particular oil importers is far from automatic. tinue to be a major factor in intermediating the The process will involve over time an accu- international flows of oil funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 I should note, however, that while we have market, commercial banks can turn to central a general concern about undue dependence on banks in the event of liquidity difficulties resultunreliable sources of funds, the fears sometimes ing from any abrupt withdrawal of funds. The expressed that the banking system could be great bulk of the recycling involving U.S. banks threatened by a sudden withdrawal of OPEC has occurred through U.S. head offices or funds from some banks are exaggerated. Current foreign branches; the role of foreign subsidiaries practices in international commercial banking or consortia in which U.S. banks participate has provide a measure of liquidity to individual been minor. For instance, the assets of the banks facing an abrupt withdrawal of short-term foreign branches of U.S. banks are more than petro-dollar deposits. For example, were the ten times as large as those of subsidiaries and beneficial owners of petro-dollar deposits to consortia banks. Almost all of these foreign elect to withdraw their funds from some Ameri- branches belong to U.S. banks that are members can banks and place them with banks of other of the Federal Reserve System. The Federal nationalities, the American banks would be Reserve is prepared, as a lender of last resort, faced with a need to finance their asset portfo- to advance sufficient funds, suitably collatlios. At the same time as the American banks eralized, to assure the continued operation of were experiencing an outflow, banks of other any solvent and soundly managed member bank nationalities would be confronted with an inflow that may be experiencing temporary liquidity of funds since the owners of these funds would difficulties associated with the abrupt withhave to deposit them somewhere, or would have drawal of petro-dollar—or any other—deposits. to purchase other assets whose sellers would Similarly, the central bankers, who meet at then make deposits. The banks that had lost the Basle, issued a statement on September 9, inpetro-dollar deposits would be able to bid for cluding the following comment: funds from the banks that had received the large and relatively sudden inflow of petro-dollar de- The Governors also had an exchange of posits in excess of the financing requirements views on the problem of the lender of last resort in the Euro-markets. They recognized of their loan portfolios. As long as the outflows that it would not be practical to lay down do not seriously affect confidence in the ability in advance detailed rules and procedures for of the banks in question, there could be a the provision of temporary liquidity. But relatively smooth process as banks receiving the they were satisfied that means are available for that purpose and will be used if and when petro-dollar deposits redeposit them with those necessary. banks losing deposits. But the possibility of such deposit withdrawals can pose serious man- I shall return to questions of emergency asagement problems, especially for all but the sistance later. largest banks. You have asked about the supervision of the A second and related source of liquidity to foreign activities, including the foreign banks that experience withdrawal of deposits is branches, of U.S. banks. The primary means the sale of assets. A bank that experienced a by which the overseas activities of U.S. banks withdrawal of its deposits could sell some of are evaluated are through examinations and reits asset portfolio to those banks that are ex- quired reporting. The examination process, periencing the deposit inflow. For the foreign which entails a scrutiny of bank assets and branches of U.S. banks, and most major banks operational procedures, seeks to assure that that participate in the Euro-currency markets, practices are being followed which minimize a large proportion of the assets consist of claims risks to depositors' funds and insure that the on other banks of less than 1-year maturity. In institution is a viable one, prudently managed. the event of liquidity pressures the foreign The concern here is primarily with solvency and branches of the banks losing deposits should be liquidity, both of which relate primarily to the able to liquidate these assets within a short type and quality of a bank's assets. The examiperiod of time. nation process also seeks to verify that applica- Apart from their ability to refinance in the ble U.S. laws and regulations are being ob- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 761 served. Examination responsibilities for the Monetary Fund (including the newly created oil overseas branches at the Federal level are di- facility). vided between the Office of the Comptroller of I would think that a good part of the financing the Currency, the Board of Governors of the required by oil-consuming countries can be Federal Reserve System, and the Federal De- provided through private credit markets for posit Insurance Corporation. In addition to ex- some time, including not only bank financing aminations, banks are required to file periodic but also the sale of financial instruments to the financial statements on their overseas branch public. For banks, there is a risk boundary offices and soon the U.S. Treasury will be differing for each bank, which should not be requiring weekly and monthly foreign exchange exceeded. I would not want to speculate on the reports that will be collected via the Federal period of time we are dealing with, but it is Reserve Banks. clear that the piling up of extraordinary loan Surveillance of foreign exchange transactions exposure by any bank is simply not consistent by individual American banks and their with sound banking practice. We would expect branches is part of the bank examination the banking system itself to take steps to protect process. A bank examination verifies a bank's its viability. However, if the regulatory authoriforeign exchange records, checks internal con- ties see the bounds of sound banking being trols, and seeks to determine whether the insti- exceeded, it should be incumbent upon them tution's senior management is keeping informed to step into the picture. But there is no internaof the bank's foreign exchange activities. tional counterpart to the FDIC, which through There are no U.S. regulations specifically its regulatory and insurance functions can governing the maximum size of any foreign clearly protect depositors against insolvency currency positions banks may take, either over- risk. all or with respect to individual currencies. On the more general question of the relation- However, examiners will warn a bank if posi- ship of the flows of oil funds to the conduct tions that are excessive by ordinary banking of monetary and fiscal policy, I do not foresee standards are found or if potential risks exist any likelihood that the flows will affect our because of poor internal controls. In judging the ability to meet the needs of our economy. Even prudence of a bank's foreign exchange position, massive increases in foreign-owned assets in the examiners consider size of the bank, volume of United States should not materially affect the international business in the country concerned, over-all level of the monetary aggregates since currency involved, purpose of the position, and what happens is essentially that existing financompetency of the trading and executive of- cial assets are transferred from domestic to ficers. I should add that we are in the process foreign ownership or among foreign owners. of reviewing this system of surveillance to be Appropriate fiscal and monetary policies should sure that it is as comprehensive and rigorous be able to maintain a high level of economic as today's circumstances require. activity regardless of whether foreigners acquire Some of what I have already said relates to assets in our country or not. There may be shifts your question—"For what period can the pri- in yields on particular types of instruments invate banking sector, unassisted, meet the credit sofar as the asset preferences of foreigners may demands of oil-consuming nations within the differ from domestic preferences. In particular, limits of prudent risk exposure?" we have noted that placements of OPEC funds So far this year the private sector has made into very liquid assets have tended to reduce large loans to oil-importing countries, but these yields on such assets relative to other market credits have in a number of instances been yields both in the United States and in the supplemented by sizable official bilateral credits Euro-markets. (the recent loan by Germany to Italy is an Your letter raised a number of aspects of the example) and also by sizable use by some oil- provision of emergency assistance. In addition importing countries of multilateral credit facili- to its role as lender of last resort to member ties—notably the resources of the International banks that I have already mentioned, the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Reserve has legal authority to lend to solvent The rapid expansion of foreign operations by institutions other than member banks to meet U.S. banks does not appear to have caused short-term liquidity drains when the national serious difficulties for the majority of the banks interest requires. Such emergency loans could that have been active in this expansion. Internabe made under the Federal Reserve Act, subject tional banking activities continue to be highly to the procedures set forth therein; in either case concentrated among a very small number of the the Federal Reserve would require adequate Nation's largest banks that have considerable collateral. experience in this area. For example, at mid- U.S. banks that own foreign subsidiaries—or 1974, nine of the largest banks accounted for those that are shareholders in multinational about two-thirds of the total foreign activity of consortia—have in the past carefully monitored all U.S. banks. I believe that the overwhelming the liquidity needs of their affiliates and provide majority of our banks have conducted their assistance when appropriate. As I have noted, foreign operations in a reasonable and prudent assets of these organizations are small in the manner. aggregate relative to those of foreign branches, Another set of questions in your request for and we would expect that management would comments relates to the provision of assistance be watchful in supervising these operations. The to consumer nations unable to secure funds in Federal Reserve may, of course, provide emer- private money markets. We have not developed gency assistance to solvent member banks any independent estimates of the needs of indiwhether or not they are parents of foreign affili- vidual countries or of the aggregate nonmarket ates. assistance that might be required. I believe the There are dangers in trying to define and Treasury will respond to these questions in some publicize specific rules for emergency assistance detail. However, I would like to offer a few to troubled banks, notably the possibility of general observations. causing undue reliance on such facilities and As I noted above, private market institutions possible relaxation of needed caution on the part cannot be expected to go beyond the bounds of all market participants. Therefore, the Fed- of prudent risk management. This means that eral Reserve has always avoided comprehensive if the price of oil stays high a growing list of statements of conditions for its assistance to countries will meet serious difficulties as they member banks. Emergency assistance is in- pile up debts to pay for oil. The obvious remedy herently a process of negotiation and judgment, for this is the restoration of a reasonable price with a range of possible actions varying with for oil. Far less satisfactory, and perhaps ulticircumstances and need. Therefore, a predeter- mately ineffective, is the provision of financing mined set of conditions for emergency lending on terms that private markets could not possibly would be inappropriate. consider. Extensive discussions of the role of host and For the moment the new oil facility at the home country central banks for extensions of IMF is the primary vehicle for financing the emergency assistance to subsidiary and multi- most needy countries, supplemented by some national financial institutions have produced a bilateral credits by OPEC countries. One of the common understanding of the problem. In some initiatives taken at the recent meetings of the countries abroad where there is no official lender IMF was the creation of a Joint Ministerial of last resort, authorities have recently taken Committee on the Transfer of Real Resources steps to strengthen the institutional framework charged with the task of discussing ways of for providing liquidity assistance to banks—in assisting the most seriously affected developing some cases by establishing new institutions and countries. There are also calls for mechanisms in others by arrangements involving the com- to help other countries as the need arises. I mercial banking community. Thus new ar- would like to note, however, that there is conrangements to provide liquidity to banks, when siderable need for caution in creating new appropriate, have recently been announced in credit-supplying facilities. We could find that Germany and Luxembourg. adjustments that oil-importing countries should Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 763 be making will be postponed if access to credit weaken world productivity and welfare they becomes easy and automatic. I have in mind generate a determination in other countries to especially the need to cut down on energy use, resist the arbitrary use of economic power and to intensify investment efforts to create substi- the piling up of unneeded assets. At the very tute sources, and to remove as rapidly as possi- least, I should think the oil-producing countries ble balance of trade deficits unrelated to the with surpluses far beyond their ability to higher price of oil. spend—even in the very long run—ought to On the other hand, there is a responsibility provide the funds that the poorer countries need to consider the problem of countries already to cover their essential needs for oil. Moreover, operating at a very low level of real income these funds should be provided on highly conas they now confront adjustment to higher en- cessionary terms and without calling on other ergy and food costs. This is the principal subject consuming countries to accept any burden of of your last group of questions. There is a default. When other countries bear the potential danger that individual consuming countries, in risk of default, it is they and not the oil productrying to be prudent and to avoid a build-up ers who are the real creditors. of debt, will take measures that can only suc- Having said that, I would conclude by noting ceed if they force other consuming countries to that with good will it should be possible to find accept undesired trade deficits and foreign debt. solutions that will avoid threats to the social There is not much evidence yet that such be- order and confrontations. The poorer countries havior is being followed, but it is a real and surely should not bear any great part of the real present threat to the free cooperative framework burden that will be involved in improving living for world trade and payments that we have been standards in oil-producing countries. And the trying to strengthen and extend. major industrial countries that are oil consumers I remain hopeful that the oil-producing coun- should be able to depend on a reliable supply tries will become aware of their own long-run of energy consistent with economic growth over interests, recognizing that as their actions the years ahead and at a reasonable price. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON AUGUST 20, 1974 Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services was changing little in the current quarter, after having declined in the first half of 1974, and that the GNP implicit deflator and wage rates were continuing to rise at a rapid pace. Staff projections suggested that weakness in real economic activity would persist in the final quarter of the year and in the first half of 1975 and that the rate of increase in prices would remain rapid, although not so rapid as in recent quarters. In July industrial production remained at the May-June level, and total nonfarm payroll employment declined for the second consecutive month. The unemployment rate edged up to 5.3 per cent. According to the advance report, retail sales increased sharply in July; from the first to the second quarter sales had advanced at a rate that was no greater than the rise in prices. Wholesale prices of farm and food products—which had declined appreciably from February to June—rose sharply in July, in part because of unfavorable weather. Among industrial commodities, price increases were widespread and extraordinarily large in July, as they had been throughout the first half of the year. The advance in the index of average hourly earnings for private nonfarm production workers had remained at a rapid rate over recent months. In June the consumer price index had continued to rise at a fast pace. Soon after he took the oath of office on August 9, President Ford indicated that high priority would be given to bringing inflation under control. Toward that end, he proposed to call a summit meeting of national leaders at an early date, to be preceded by several sub-summit meetings, and he recommended legislation to create an agency that would monitor prices and wages in order to expose abuses. Staff projections that weakness in economic activity would persist Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 765 in the fourth quarter of this year and in the first half of 1975 were based on the following expectations: that the contraction in residential construction outlays would continue; that the expansion in business fixed investment would taper off; that growth in disposable income and in personal consumption expenditures would be little, if any, greater than the rate of increase in prices; and that the pace of business inventory accumulation would moderate. In foreign exchange markets the gradual appreciation of the dollar against leading foreign currencies that had begun in mid-May continued between mid-July and mid-August. U.S. commercial bank loans to foreigners, especially to Japanese borrowers, apparently remained large; however, inflows of foreign capital, particularly from oil-exporting countries, also were large. In June the U.S. merchandise trade deficit was well below the extraordinary deficit of May, as exports rose much more than imports; from the first quarter to the second quarter, however, the trade deficit had deepened considerably, primarily as a result of a large further increase in the value of petroleum imports. The rate of expansion in loans and investments at U.S. commercial banks—which had moderated throughout the second quarter, even though business loan growth had remained strong—picked up in July, reflecting a substantial further increase in business loans. Business demands for bank loans had begun to strengthen in late June, as some demands for credit were diverted from the commercial paper and capital markets in response to a marked deterioration in conditions in those markets and to increases in market interest rates relative to effective rates on bank loans. After mid-July, however, business loan growth subsided, as financial market conditions improved and commercial paper rates declined relative to bank rates. To finance the July expansion in loans, banks increased their outstanding volume of large-denomination CD's and reduced their holdings of Government securities by substantial amounts. The narrowly defined money stock (Mj)1 grew at an annual rate of 1.7 per cent in July—down from a rate of 7.8 per cent in June and of 6 per cent over the first half of the year.2 Reflecting the Private demand deposits plus currency in circulation. 2Growth rates cited are calculated on the basis of the daily-average level in the last month of the period relative to that in the last month preceding the period and on the basis of the revised statistics published on August 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 behavior of M, growth in the more broadly defined money stock x (M)3 also slowed appreciably in July; net inflows to banks of time 2 and savings deposits other than large-denomination CD's were only a little below the relatively strong pace of June. Net deposit inflows at nonbank thrift institutions weakened considerably in July, in part because of the more attractive rates available on market securities. The deterioration in deposit experience apparently was progressive during the month, and it continued in early August. Growth in the measure of the money stock that includes such deposits (M )4 slowed appreciably in July. Contract :i interest rates on conventional mortgages in the primary market and yields in the secondary market for Federally underwritten mortgages rose substantially further from early July to early August. On July 31 the Treasury announced that it would auction up to $4.4 billion of notes and bonds to refund publicly held notes that were to mature in mid-August. In auctions on August 6, 7, and 8, respectively, the Treasury sold $2.25 billion of 33-month, 9 per cent notes at an average price to yield 8.59 per cent; $1.75 billion of 6-year, 9 per cent notes at an average price to yield 8.75 per cent; and $400 million of 24%-year bonds at an average price to yield 8.63 per cent. In addition, $1.5 billion of 244-day bills of the Federal Financing Bank were auctioned on July 23 at an average price to yield 8.05 per cent on a discount basis. At the time of the Committee meeting in mid-July money market conditions had begun to ease from an exceptionally taut position, reflecting abatement of the uncertainties that temporarily had reduced the willingness of member banks to borrow from Federal Reserve Banks and had increased their desire to hold excess reserves. The Federal funds rate dropped to around \2lA per cent on the day of the July 16 meeting, after having been in a range of 13 to 14 per cent in late June and early July. Following the July 16 meeting, System open market operations had been guided by the Committee's decision to seek bank reserve and money market conditions that would moderate growth in monetary aggregates over the months ahead, while taking account of the forth- 3 Mi plus commercial bank time and savings deposits other than large-denomination CD's. 4M2 plus time and savings deposits at mutual savings banks and at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 767 coming Treasury financing and of developments in domestic and international financial markets. As the inter-meeting period progressed, available data suggested that in the July-August period the annual rates of growth in the monetary aggregates would be within the ranges of tolerance that had been specified by the Committee. Accordingly, System operations were directed toward maintaining the funds rate around the middle of the IV/2 to 13 per cent range the Committee had specified; on the day before this meeting the rate was about 1214 per cent, the same as on July 16. In the four statement weeks ending August 14, member bank borrowings averaged about $3,365 million, about $350 million more than the average in the preceding 4 weeks. Market interest rates on most short- and long-term private securities had declined somewhat in the period since the Committee's meeting on July 16, and yield spreads between high- and lowerquality securities—which had widened sharply last spring—had narrowed, in association with the lessening of tensions in financial markets. The over-all volume of public offerings of corporate and State and local government bonds declined further in July, even though an unseasonally large volume had appeared in prospect, as some issues were postponed or canceled and other issues were reduced in size. A moderate increase in the volume appeared to be in prospect for August. In contrast, yields on Treasury and Federal agency securities generally advanced in the inter-meeting period, in part because of the considerable increase in market supplies of such securities, particularly short-term issues, resulting from the recent Treasury offerings. On the day before this meeting the market rate on 3-month Treasury bills was 8.84 per cent, up from 7.62 per cent on the day before the July meeting. The Committee concluded that the economic situation continued to call for moderate growth in monetary aggregates over the longer run. A staff analysis suggested that the unusually slow pace of monetary growth in July was not likely to persist in view of the continued sizable rate of growth in prospect for nominal GNP; in fact, data available for early August indicated that some strengthening had occurred already. Nevertheless, it appeared likely that if M were to grow at a rate consistent with the Committee's x longer-run objectives for the monetary aggregates, money market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 conditions would ease somewhat in the period immediately ahead. Such easing would probably lead to only a modest downward adjustment in market interest rates in general, because in the weeks ahead the volume of offerings of both private and Government securities was expected to be substantial. The staff analysis suggested that inflows to banks of time and savings deposits other than money market CD's would slow somewhat further in the months ahead and that the deposit experience of nonbank thrift institutions would remain weak, as many small savers continued to find market instruments more attractive than deposit accounts. It was expected that expansion in business loans—and in total bank credit—would moderate, because of both a decline in the rate of business inventory accumulation and a tightening of bank lending policies, and that, consequently, growth in the outstanding volume of money market CD's would moderate. Taking account of the staff analysis, the Committee concluded that growth in M and M over the August-September period at x 2 annual rates within ranges of tolerance of 4% to 6% per cent and 5V2 to 7!/ per cent, respectively, would be consistent with its 2 longer-run objectives for the monetary aggregates. The members agreed that such growth rates would be likely to involve growth in reserves available to support private nonbank deposits (RPD's) within a range of tolerance of 73A to 9% per cent, and they decided that in the period until the next meeting the weekly average Federal funds rate might be permitted to vary in an orderly fashion from as low as IW2 per cent to as high as 12V£ per cent, if necessary, in the course of operations. The members also agreed that, in the conduct of operations, account should be taken 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 is changing little in the current quarter, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 769 following the first-half decline, and that price and wage increases are continuing large. In July industrial production was unchanged from the May-June level, and nonfarm payroll employment declined further. The unemployment rate edged up to 5.3 per cent. Wholesale prices of farm and food products rose sharply, after having declined for 4 months, and increases among industrial commodities continued widespread and extraordinarily large. The new Administration has indicated that it will give high priority to combating inflation and that it will convene a summit meeting of the nation's economic leaders to that end. In recent weeks the dollar has appreciated somewhat further against leading foreign currencies. U.S. bank lending to foreign borrowers, especially in Japan, has apparently continued large, but inflows of foreign capital, particularly from oil-exporting countries, have also been large. The foreign trade deficit, although smaller in June than in May, widened substantially from the first to the second quarter as the value of petroleum imports increased. The narrowly defined money stock rose only slightly in July, after having grown at an annual rate of 6 per cent over the first half of the year. Net inflows at banks of time deposits other than money market CD's slowed somewhat in July, and deposit experience at nonbank institutions worsened materially in July and early August. Growth in business loans and in total bank credit was substantial in July, although the pace of expansion slackened after the early part of the month. To finance loan growth, banks reduced their holdings of Treasury securities and increased their outstanding volume of large-denomination CD's by substantial amounts. Interest rates on most private market instruments have declined a little in recent weeks, and in association with some easing of tensions in financial markets, yield spreads between prime- and lower-quality issues—which had widened sharply—have narrowed. Yields on Government securities, particularly Treasury bills, have increased, in part because new Treasury offerings relieved a market shortage of such securities. 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 developments in domestic and international financial markets, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 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. 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

771 Law Department Statutes, regulations, interpretations, and decisions EMERGENCY HOME PURCHASE ACT OF 1974 AMENDMENT TO REGULATION A An Act of Congress approved October 18, 1974 Effective October 25, 1974, section 201.3(b) is (PL 93-449), provided on an emergency basis for amended to read as follows: an increase in the availability of reasonably priced mortgage credit for housing. Section 5 of the Act SECTION 201.3—ADVANCES TO reads as follows: MEMBER BANKS AN ACT To increase on an emergency basis the availability of reasonably priced mortgage credit for hous- (b) Advances on other security. A Reserve ing. Bank may make advances to a member bank for not more than four months if secured to the satis- Be it enacted by the Senate and House of faction of the Reserve Bank, whether or not se- Representatives of the United States of America cured in conformity with § 201.3(a), but the rate in Congress assembled, on such advances shall be at least one-half of one per cent per annum higher than the rate applicable § 1. Short title to advances under § 201.3(a). Provided, however, This Act may be cited as the "Emergency Home advances under this paragraph, when secured by Purchase Assistance Act of 1974." mortgages on one-to-four family residential property, shall be at a rate equal to the rate applicable to advances made under § 201.3(a). INTEREST ON DEPOSITS SEC. 5. Section 10(b) of the Federal Reserve Act is amended by adding the following at the end thereof: The Board of Governors has amended its Regu- "Notwithstanding the foregoing, any Federal Reserve bank, lation Q to remove the 150 per year limitation on under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to the number of NOWs that may be accepted from any member bank on its time notes having such maturities a customer by a member bank. as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Such advances shall bear interest at a rate equal to the lowest discount rate AMENDMENT TO REGULATION Q in effect at such Federal Reserve bank on the date of such note." Effective October 17, 1974, section 217.5(c) is amended to read as follows: EXTENSIONS OF CREDIT SECTION 217.5—WITHDRAWAL OF BY FEDERAL RESERVE BANKS SAVINGS DEPOSITS The Board of Governors has amended its Regulation A to modify the authority of Federal Reserve Banks to make advances to member banks on the security of residential mortgages. The amendment (c) Manner of payment of savings deposits makes the rate on advances secured by one-to-four (1) Subject to the provisions of subparagraphs family mortgages the same as the basic discount (2) and (3) of this paragraph, * * * rate applicable to loans secured by eligible collateral as defined in the Federal Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 (3) The provisions of this paragraph do not in the states of Massachusetts and New Hampapply to deposits subject to negotiable orders of shire, withdrawal authorized by Federal law to be issued BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF organizations competing in its relevant banking BANK HOLDING COMPANY ACT market2 where it holds about 5.9 per cent of the market's total commercial deposits. Bay Port Bank EASTERN BANK CORPORATION, (deposits of $6 million) is the seventh largest BAY PORT, MICHIGAN among nine banking organizations competing in the Huron County banking market where it holds ORDER DENYING FORMATION OF BANK HOLDING approximately 4.9 per cent of the market's total COMPANY commercial deposits. Upon consummation of the Eastern Bank Corporation, Bay Port, Michigan, proposal, Applicant would control aggregate dehas applied for the Board's approval under § posits of $23.9 million representing only 0.09 per 3(a)(1) of the Bank Holding Company Act (12 cent of the total commercial bank deposits in U.S.C. 1842(a)(1)) of formation of a bank holding Michigan. Inasmuch as each of the subject banks company through the acquisition of (1) 62.46 per is located in a separate banking market and no cent or more of the voting shares of Imlay City significant competition exists between any of the State Bank, Imlay City, Michigan (''Imlay City subject banks, consummation of the proposal Bank"); (2) 55.98 per cent or more of the voting would not have an adverse effect on existing or shares of Akron State Bank, Akron, Michigan potential competition nor would it increase the ("Akron Bank"); and (3) 54.38 per cent or more concentration of banking resources or have an of the voting shares of Bay Port State Bank, Bay adverse effect on other banks in any of the relevant Port, Michigan ("Bay Port Bank"). markets. Accordingly, the Board concludes that Notice of the application, affording opportunity competitive considerations are consistent with apfor interested persons to submit comments and proval of the application. views, has been given in accordance with § 3(b) The Board has indicated on previous occasions of the Act. The time for filing comments and views that it believes a holding company should provide has expired, and the Board has considered the a source of strength for its subsidiary banks and application and all comments received in light of that it will examine closely the condition of the the factors set forth in § 3(c) of the Act (12 U.S.C. applicant in each case with this view in mind. With 1842(c)). respect to the present proposal, the subject banks Applicant is a nonoperating corporation orga- would be acquired through an exchange of shares nized for the purpose of becoming a bank holding and assumption of debt totaling $774,000 (based company through the acquisition of each of the on the minimum number of shares to be acquired). subject banks. Imlay City Bank (deposits of $11.3 Applicant expects to service this debt primarily million) is the second largest among six banking through the earnings of the subject banks and in organizations competing in its banking market1 this regard has projected the average operating where it holds about 19.4 per cent of the market's income for each of the subject banks for the period total commercial deposits. Akron Bank (deposits 1974-1985 which substantially exceeds the of $6.6 million) is the smallest of ten banking average operating income experienced by the subject banks over the last five years. Given this record of profitability, the Board is unable to 1 The relevant banking market of Imlay City Bank approximates the eastern two-thirds of Lapeer County, the western one-third of St. Clair County, and the extreme southwest corner 2 The relevant market of Akron Bank is approximated by of Sanilac County. Tuscola County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 773 conclude that Applicant's projected earnings are applied for the Board's approval under § 3(a)(1) reasonable or attainable. Furthermore, even if Ap- of the Bank Holding Company Act (12 U.S.C. plicant's projections are realized the projected 1842(a)(1)) of formation of a bank holding comearnings for the subject banks do not, in the pany through acquisition of 80 per cent or more Board's view, provide Applicant with the neces- of the voting shares of The First National Bank sary financial flexibility to meet its annual debt of Rantoul, Rantoul, Illinois ("Bank"). service requirements as well as any unexpected Notice of the application, affording opportunity problems that may arise at the subject banks. for interested persons to submit comments and Accordingly, on the basis of the record, the Board views, has been given in accordance with § 3(b) concludes that the considerations relating to the of the Act. The time for filing comments and views financial aspects of Applicant's proposal weigh has expired, and the Board has considered the against approval of the application. application and all comments received in light of The proposed formation represents merely a the factors set forth in § 3(c) of the Act (12 U.S.C. restructuring of the ownership of the subject banks 1842(c)). with no significant changes in either the operations Applicant is a nonoperating corporation orgaor the services offered to customers. Conse- nized for the purpose of becoming a bank holding quently, considerations relating to the convenience company through acquisition of Bank, deposits of and needs of the community to be served lend no $16 million, representing .03 of 1 per cent of the weight toward approval of the application. On the total commercial bank deposits in Illinois.1 Bank other hand, as noted above, the servicing require- is the eighth largest of the 20 commercial banks ments of the acquisition debt incurred by Applicant operating in the Champaign-Urbana SMSA bankcould impair the ability of the subject banks to ing market, and controls about 4 per cent of total continue to serve their respective communities as market deposits. The purpose of the proposed viable banking organizations. transaction is to convert ownership in Bank from On the basis of all the circumstances concerning individuals to a corporation owned by essentially this application, the Board concludes that the fi- the same individuals. Since Applicant has no nancial considerations involved in this proposal present operations, consummation of the proposal present adverse factors bearing on the financial would have no effect on exisiting or potential condition and prospects of Applicant and the sub- competition. Accordingly, the Board concludes ject banks. Such adverse factors are not out- that competitive considerations are consistent with weighed by any procompetitive effects or by ben- approval of the application. efits which would result in serving the convenience The financial condition and managerial reand needs of the communities. Accordingly, it is sources of Applicant are dependent upon those the Board's judgment that approval of the applica- same conditions as they exist in Bank. Principals tion would not be in the public interest and that of Applicant acquired 80 per cent of the stock of the application should be denied. Applicant in recent months, and the Bank's finan- On the basis of the record, the application is cial condition has improved under the new ownerdenied for the reasons summarized above. ship. Applicant will incur acquisition debt in con- By order of the Board of Governors, effective nection with this proposal; however, based on October 18, 1974. Bank's present sound financial condition, its satis- Voting for this action: Vice Chairman Mitchell and Gover- factory management and past earnings, it appears nors Sheehan, Holland, and Wallich. Absent and not voting: that the projected dividends from Bank would be Chairman Burns and Governor Bucher. sufficient to provide the necessary funds for the (Signed) THEODORE E. ALLISON, retirement of Applicant's debt without placing a [SEAL] Secretary of the Board. burden on Bank's capital position. Prospects for Applicant and Bank appear favorable. Accord- FIRST RANTOUL CORPORATION, ingly, considerations relating to the banking fac- URBANA, ILLINOIS tors are consistent with approval of the application. ORDER APPROVING FORMATION OF BANK HOLDING COMPANY First Rantoul Corporation, Urbana, Illinois, has All banking data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Upon consummation of the proposal, Applicant itself. Thus, consummation of the proposed acintends to broaden Bank's services in the areas quisition could result in adverse effects on Bank's of agricultural lending, customer savings plans, financial structure and thereby impair the services and consumer loans. These considerations relating it renders to the public. to the convenience and needs of the communities For these reasons, we do not regard the proposal to be served, therefore, are consistent with ap- as being in the public interest and, therefore, we proval of the application. It is the Board's judg- would deny the application. ment that the proposed transaction would be in the public interest and that the application should HARDIN BANCORP, be approved. IOWA FALLS, IOWA On the basis of the record, the application is ORDER APPROVING FORMATION OF BANK approved for the reasons summarized above. The HOLDING COMPANY transaction shall not be made (a) before the thirtieth calendar day following the effective date of Hardin Bancorp, Iowa Falls, Iowa, has applied this Order or (b) later than three months after the for the Board's approval under § 3(a)(1) of the effective date of this Order, unless such period Bank Holding Company Act (12 U.S.C. 1842 is extended for good cause by the Board, or by (a)(1)) of formation of a bank holding company the Federal Reserve Bank of Chicago pursuant to through acquisition of 84.87 per cent of the voting delegated authority. shares of Citizens State Bank, Iowa Falls, Iowa By order of the Board of Governors, effective ("Bank"). October 4, 1974. Notice of receipt of the application, affording Voting for this action: Chairman Burns and Governors opportunity for interested persons to submit com- Holland, and Wallich. Voting against this action: Governors ments and views, has been given in accordance Mitchell and Sheehan. Absent and not voting: Governor with § 3(b) of the Act. The time for filing com- Bucher. ments and views has expired, and the Board has (Signed) THEODORE E. ALLISON, considered the application and all comments re- [SEAL] Secretary of the Board. ceived in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). DISSENTING STATEMENT OF Applicant, a nonoperating company with no GOVERNORS MITCHELL AND SHEEHAN subsidiaries, was recently organized to become a bank holding company through the acquisition of We would deny the application of First Rantoul Bank ($19.6 million in deposits1). Bank is the Corporation to become a bank holding company largest of eight banks located in the relevant through acquisition of The First National Bank of banking market2 and controls approximately 22 per Rantoul based on our view that Applicant would cent of total deposits in commercial banks in the not have the necessary financial flexibility to sermarket. Upon acquisition of Bank, Applicant vice the acquisition debt it would incur without would become the 257th largest banking organiadversely affecting the capital position of the bank zation in Iowa with 0.21 per cent of total comto be acquired. mercial bank deposits in the State. Since the pro- Principals of Applicant acquired 80 per cent of posal is essentially a reorganization of Bank's the shares of Bank's stock between June 1973 and ownership, whereby individuals who control Bank February 1974 through a purchase which resulted directly would control it indirectly through Appliin a high premium to previous shareholders. Under cant, consummation of the proposal would elimithe present proposal, the principals of Applicant nate neither existing nor potential competition, nor would receive holding company shares and the would it increase the concentration of banking holding company will assume shareholders debt. resources in any relevant area. It is concluded that Upon consummation of the proposed acquisition, competitive considerations are consistent with ap- Applicant will have capital funds of $331,200 and proval of the application. liabilities of $986,400. The financial and managerial resources and fu- The acquisition debt to be assumed by Applicant is three times the book value of its equity funds. In our opinion, this involves an excessive fixed charge on the earnings of the bank and jeopardizes 1 All banking data are as of December 31, 1973. 2 The relevant market is approximated by all of Hardin the maintenance of capital adequacy of the bank County, excluding the southeastern portion thereof. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 775 ture prospects of Applicant are dependent upon For the foregoing reasons, we do not regard the those of Bank, which are considered to be satis- proposal as being in the public interest, and we factory. Bank's capital and projected income are would deny the application. regarded as adequate to service the debt incurred by Applicant incident to the acquisition. Considerations relating to the banking factors are con- NEOSHO BANCSHARES, INC., sistent with approval of the application. Although THAYER, KANSAS consummation of the transaction is not expected ORDER DENYING FORMATION OF BANK to produce any immediate changes in Bank's HOLDING COMPANY operations nor immediate benefits to the public, considerations relating to the convenience and Neosho Bancshares, Inc., Thayer, Kansas, has needs of the community to be served are consistent applied for the Board's approval under § 3(a)(1) with approval. It is the Board's judgment that the of the Bank Holding Company Act (12 U.S.C. acquisition would be consistent with the public 1842(a)(1)) to become a bank holding company interest and that the application should be ap- through acquisition of 95.2 per cent or more of proved. the voting shares of The First State Bank, Thayer, On the basis of the record, the application is Kansas ("Bank"). The factors that are considered approved for the reasons summarized above. The in acting on the application are set forth in § 3(c) transaction shall not be made (a) before the thir- of the Act (12 U.S.C. 1842(c)). tieth calendar day following the effective date of Applicant has also also applied, pursuant to § this Order or (b) later than three months after the 4(c)(8) of the Bank Holding Company Act (12 effective date of this Order unless such period is U.S.C. 1842(c)(8)) and § 225.4(b)(2) of the extended for good cause by the Board or by the Board's Regulation Y, for permission to acquire Federal Reserve Bank of Chicago pursuant to the assets of Thayer Insurance Agency, Thayer, delegated authority. Kansas ("Agency"). Applicant would engage By order of the Board of Governors, effective thereafter in the activities of a general insurance October 15, 1974. agency in a community not exceeding 5,000 inhabitants. Such activities have been determined by Voting for this action: Governors Bucher, Holland, and the Board in § 225.4(a)(9)(iii) of Regulation Y Wallich. Voting against this action: Vice Chairman Mitchell and Governor Sheehan. Absent and not voting: Chairman as permissible for bank holding companies, subject Burns. to Board approval of individual proposals in ac- (Signed) THEODORE E. ALLISON, cordance with the procedures of § 225.4(b). [SEAL] Secretary of the Board. Notice of the applications, affording opportunity for interested persons to submit comments and DISSENTING STATEMENT OF views on the public interest factors, has been duly GOVERNORS MITCHELL AND SHEEHAN published (39 Federal Register 30865). The time We would deny the application of Hardin Ban- for filing comments and views has expired, and corp to become a bank holding company through the Board has considered the applications and all acquisition of Citizens State Bank ("Bank"). Ap- comments received in light of the factors set forth plicant's earnings prospects are heavily dependent in the respective Acts. upon the earnings of Bank; Applicant expects to Applicant is a nonoperating corporation orgaservice an acquisition debt of $1.1 million over nized for the purpose of becoming a bank holding a 12-year period through income derived from company through acquisition of Bank, and of dividends from Bank. The projected earnings of acquiring the insurance agency business from the Applicant do not, in our view, provide Applicant principal shareholders of Bank. Bank, with dewith the necessary financial flexibility to meet its posits of $5 million, representing less than 1 per annual debt servicing requirements as well as any cent of the commercial bank deposits in Kansas, unexpected problems that might arise at Bank. is the fourth largest of six commercial banks This strongly suggests that the financial require- operating in the Neosho County banking market.1 ments of Applicant's proposal could place an Bank holds 8.1 per cent of the total commercial undue strain on the financial condition of Bank and thereby impair Bank's ability to remain a viable banking organization in meeting the needs 1 All banking data are as of December 31, 1973 and reflect formations and acquisitions approved through September 30, of the community which it serves. 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 deposits in this market. Inasmuch as the proposal for approval to become a bank holding company represents merely a restructuring of Bank's own- should be denied.2 ership, the acquisition of Bank by Applicant would By order of the Board of Governors, effective have no adverse effects on competition within the October 29, 1974. banking market. Accordingly, the Board concludes that competitive considerations are consist- Voting for this action: Chairman Burns and Governors ent with approval of the application. Sheehan, Bucher, Holland, and Wallich. Absent and not voting: Governor Mitchell. The Board has indicated on previous occasions that it believes a holding company should provide (Signed) THEODORE E. ALLISON, a source of strength for its subsidiary banks and [SEAL] Secretary of the Board. that it will examine closely the condition of the applicant in each case with this view in mind. The 2 In view of the Board's action with respect to the application present proposal entails a high level of acquisition to become a bank holding company, consideration of the § debt which Applicant proposes to service over a 4(c)(8) application to engage in insurance agency activities becomes moot. period of 11 years through earnings from Agency, management fees from Bank, and dividends from Bank. It does not appear that Applicant's projected OREGON CORPORATION, earnings are reasonable or attainable. Furthermore, OREGON, ILLINOIS even if Applicant's projections are realized, the ORDER APPROVING FORMATION OF BANK projected earnings of Bank and agency do not, HOLDING COMPANY in the Board's view, provide Applicant with the necessary financial flexibility to meet its annual Oregon Corporation, Oregon, Illinois, has apdebt service requirements as well as any unfore- plied for the Board's approval under § 3(a)(1) of seen financial problems that might arise at Bank. the Bank Holding Company Act (12 U.S.C. Accordingly, on the basis of the facts of record, 1842(a)(1)) of formation of a bank holding comthe Board concludes that considerations relating pany through acquisition of 95.3 per cent of the to the financial aspects of Applicant's proposal voting shares of The Ogle County National Bank weigh against approval of the application. of Oregon, Oregon, Illinois ("Bank"). The proposed formation represents merely a Notice of receipt of the application, affording restructuring of the ownership of Bank with no opportunity for interested persons to submit comsignificant changes in Bank's operations or the ments and views, has been given in accordance services offered to customers. Consequently, con- with § 3(b) of the Act. The time for filing comsiderations relating to the convenience and needs ments and views has expired, and the Board has of the community to be served lend no weight considered the application and all comments retoward approval of the application. On the other ceived in light of the factors set forth in § 3(c) hand, as noted above, the servicing requirements of the Act (12 U.S.C. 1842(c)). of the acquisition debt incurred by Applicant could Applicant was recently organized for the purimpair Bank's ability to continue to serve the pose of becoming a bank holding company through community as a viable banking organization. the acquisition of Bank. Bank, with total deposits On the basis of all the circumstances concerning of $12.8 million, is the 563rd largest bank in this application, the Board concludes that the fi- Illinois with 0.02 per cent of deposits in the State.1 nancial considerations involved in the proposal Bank is the third largest of eight banks competing present adverse factors bearing on the financial in the area of Dixon, Illinois, with about 11.5 per condition and prospects of Applicant and Bank. cent of total commercial bank deposits therein. Such adverse factors are not outweighed by any Since Applicant has no present operations or subprocompetitive effects or by benefits which would sidiaries, consummation of the proposal would not result in serving the convenience and needs of the eliminate existing or potential competition nor community. Accordingly, it is the Board's judg- have an adverse effect on other area banks. ment that approval of the application would not be in the public interest and that the application 1 All banking data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 LAW DEPARTMENT Among the principals of Applicant are several to service the acquisition debt it would incur who are principals of four other banks all of which without adversely affecting the capital position of are located in the Rockford SMS A. The aggregate the bank to be acquired. deposits of these banks represent 17.6 per cent Organizers of Applicant acquired 1,916 of of the total commercial deposits in the Rockford Bank's 2,000 shares on May 1, 1974, through a SMSA. On the basis of the record, including the purchase which resulted in a high premium to facts that the banks are located in a separate but previous shareholders. Under the present proposal, adjacent banking market and are under common the principals of Applicant would receive holding ownership, no meaningful competition exists be- company shares and the holding company will tween them and Bank, and it appears unlikely that assume shareholders' debt, equaling 71.25 per such competition would develop in the future. cent of the acquisition price of Bank shares. Pro- Accordingly, the Board concludes that competitive jections indicate an additional $274,000 will be considerations are consistent with approval of the borrowed during Applicant's first three years of application. operation, as major payments on the installment The financial condition and managerial re- notes come due. sources of Applicant and Bank are considered to The acquisition debt to be assumed by Applicant be generally satisfactory and the prospects of each is 2Vi times the book value of its equity funds. appear favorable. Banking factors are consistent In my opinion, the dividends required from Bank with approval of the application. Although there to service Applicant's debt involves an excessive will be no immediate change or increase in the fixed charge on the earnings of the bank that could services offered by Bank upon consummation of jeopardize the maintenance of capital adequacy of the proposal, considerations relating to the con- the bank itself. Thus, consummation of the venience and needs of the communities to be proposed acquisition could result in adverse effects served are consistent with approval of the applica- on Bank's financial structure and thereby impair tion. It is the Board's judgment that consummation the services it renders the public. of the proposed transaction would be in the public Based on the foregoing reasons, I do not regard interest and that the application should be ap- the proposal as being in the public interest and, proved. therefore, would deny the application. On the basis of the record, the application is approved for the reasons summarized above. The TRI-STATE BANCORPORATION, INC., transaction shall not be made (a) before the thir- EAST DUBUQUE, ILLINOIS tieth calendar day following the effective date of this Order or (b) later than three months after the ORDER DENYING FORMATION of BANK effective date of this Order unless such period is HOLDING COMPANY extended for good cause by the Board or by the Federal Reserve Bank of Chicago pursuant to Tri-State Bancorporation, Inc., East Dubuque, delegated authority. Illinois, has applied for the Board's approval under By order of the Board of Governors, effective § 3(a)(1) of the Bank Holding Company Act (12 October 7, 1974. U.S.C. 1842(a)(1)) of formation of a bank holding company through acquisition of 51 per cent or Voting for this action: Chairman Burns and Governors more of the voting shares of Tri-State Bank of Sheehan, Bucher, Holland, and Wallich. Voting against this East Dubuque, East Dubuque, Illinois ("Bank"). action: Governor Mitchell. At the same time, Applicant has applied for the (Signed) THEODORE E. ALLISON, Board's approval pursuant to § 4(c)(8) of the Act [SEAL] Secretary of the Board. (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the Board's Regulation Y to continue to engage in the DISSENTING STATEMENT OF activities of a general insurance agency in a com- GOVERNOR MITCHELL munity with a population of less than 5,000 per- I would deny the application of Oregon Cor- sons. Such activities have been determined by the poration to become a bank holding company Board to be closely related to banking (12 CFR through acquisition of The Ogle County National 225.4(a)(9)(iii)(a)). Bank of Oregon based on my view that Applicant Notice of the applications, affording opportunity would not have the necessary financial flexibility for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 views, has been given in accordance with §§ 3 does not sanction the use of a holding company and 4 of the Act. The time for filing comments structure that would, because of the sizeable debt and views has expired, and the Board has consid- of the holding company, impair the financial conered the applications and all comments received dition of the bank to be acquired. Such considin light of the factors set forth in § 3(c) of the erations relating to banking factors lend weight Act and the considerations specified in § 4(c)(8) toward denial of the application. of the Act. As indicated above, the proposal contemplates Applicant presently conducts general insurance no meaningful changes in Bank's operations which agency activities in East Dubuque, Illinois, a town would produce benefits to the public. Thus, conof approximately 2,408 people. Bank, with de- siderations relating to convenience and needs proposits of $13.5 million,1 is the fourth largest of vide no weight for approval of the application. 6 banks in the relevant banking market,2 control- On the basis of all the facts in the record, it ling approximately 4.8 per cent of the total depos- is the Board's judgment that the possible adverse its in commercial banks in the market. The purpose effects of the management practices of principals of the proposed transaction is to effect a transfer of Applicant upon the financial condition of Bank to Applicant of Bank's shares presently owned by would be inconsistent with the standards set forth Applicant's sole shareholder, with no change in in § 3(c) of the Act. Accordingly, it is the Board's Bank's management or operations. Since Appli- judgment that consummation of the proposal cant presently has no subsidiaries, consummation would not be in the public interest, and that the of the proposal would have no significantly adverse application should be denied.3 effects on competition in any relevant area. By order of the Board of Governors, October As it has indicated on previous occasions, the 25, 1974. Board believes that a holding company should be Voting for this action: Chairman Burns and Governors a source of financial and managerial strength for Mitchell, Holland, and Wallich. Absent and not voting: Govits subsidiary bank(s) and every proposed acquisi- ernors Sheehan and Bucher. tion or formation is closely examined with this (Signed) GRIFFITH L. GARWOOD, consideration in mind. Under the proposal, Appli- [SEAL] Assistant Secretary of the Board. cant would incur debt of $350,000. The future prospects of Applicant and its ability to service the debt are primarily dependent upon the financial APLINGTON INSURANCE, INC., resources of Bank. In this connection, the Board APLINGTON, IOWA notes that Bank's capital ratios have declined since ORDER APPROVING ACQUISITION OF ADDITIONAL control of Bank was acquired by Applicant's sole BANK SHARES shareholder in 1969. It appears that this situation has developed in part due to certain management Aplington Insurance, Inc., Aplington, Iowa, a practices of Bank's majority shareholder (who is bank holding company within the meaning of the also the sole shareholder of Applicant). In the Bank Holding Company Act, has applied for the Board's view, the declining position of Bank's Board's approval under § 3(a)(3) of the Act (12 capital and the proposed policies of Applicant U.S.C. 1842(a)(3)) to acquire an additional 4 per indicate that Applicant would not have the neces- cent of the voting shares of State Savings Bank, sary financial flexibility to meet its annual debt Aplington, Iowa ("Bank"). servicing requirements without adversely affecting Notice of the application, affording opportunity the capital position of Bank. The above factors for interested persons to submit comments and strongly suggest that the future financial require- views, has been given in accordance with § 3(b) ments of Applicant could place an undue strain of the Act. The time for filing comments and views on Bank and thus impair its ability to continue has expired, and the Board has considered the as a viable banking organization in meeting the application and all comments received in light of needs of the communities it serves. Although the the factors set forth in § 3(c) of the Act (12 U.S.C. financial condition of Bank is sound, the Board 1842(c)). 1 Banking data are as of December 31, 1973. ;s In view of the Board's action with respect to the applica- 2 The market area is approximated by RMA which encom- tion to become a bank holding company, consideration of the passes Dubuque, Iowa, East Dubuque, Illinois and the southern application to engage in insurance agency activities becomes portion of Grant County, Wisconsin. moot. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 779 Applicant is a one bank holding company which of Bank should provide Applicant with the necesconducts general insurance agency activities in sary financial flexibility to meet its annual debt Aplington, Iowa, a town of 936 persons, 1 and servicing requirements while maintaining an adecontrols Bank through the ownership of 47.4 per quate capital position for Bank. Accordingly, the cent of Bank's voting shares. Bank holds deposits future prospects for Applicant and Bank appear of $5.8 million,2 representing .07 per cent of the favorable. Thus, the considerations relating to the total deposits in the State and 14.5 per cent of banking factors are consistent with approval of the the total deposits in commercial banks in the application. The considerations relating to the relevant market,3 and is the smallest of four banks convenience and needs of the community to be operating in the relevant market. served are consistent with approval of the applica- The purpose of the proposed transaction is to tion. It is the Board's judgment that the proposed effect a transfer of certain shares of Bank from transaction would be in the public interest and that indirect control by Applicant, through principals the application should be approved. of Applicant, to direct control through ownership On the basis of the record, the application is by Applicant with no change in Bank's manage- approved for the reasons summarized above. The ment or operations. The shares in question (4 per transaction shall not be made (a) before the thircent of Bank's total voting shares) are currently tieth calendar day following the effective date of owned by Bank Service Department, Inc., Swea this Order or (b) later than three months after the City, Iowa, which in turn, is wholly-owned by effective date of this Order, unless such period principals of Applicant, as individuals. The is extended for good cause by the Board, or by principals of Applicant are also principals of sev- the Federal Reserve Bank of Kansas City pursuant eral other one bank holding companies. Of these, to delegated authority. the one nearest to Bank is located more than 95 By order of the Board of Governors, effective miles away. There does not appear to be any October 16, 1974. meaningful competition existing between any of banks controlled by principals of Applicant and Voting for this action: Chairman Burns and Governors Bucher, Holland, and Wallich. Voting against this action: Bank, nor does it appear likely that any significant Governor Mitchell. Absent and not voting: Governor Sheehan. competition would develop due primarily to the (Signed) THEODORE E. ALLISON, distances involved. Since the proposed transaction [SEAL] Secretary of the Board. is essentially a corporate reorganization, consummation of the proposal would not have any adverse effect on existing or potential competition, nor DISSENTING STATEMENT OF would it increase the concentration of banking GOVERNOR MITCHELL resources or have an adverse effect on other banks I would deny the application of Aplington Inin the area. Therefore, the Board concludes that surance, Inc. to acquire additional shares of State competitive considerations are consistent with ap- Savings Bank based on my view that Applicant proval of the application. would not have the necessary financial flexibility The financial condition and managerial reto service the debt it would incur incident to this sources of Applicant and Bank are considered proposal without adversely affecting the capital satisfactory. The future prospects of Applicant are position of the bank. primarily dependent upon the financial resources Under the proposed transaction, Applicant of Bank. In this regard, Applicant proposes to would incur additional debt of $18,000, which is service the debt it will assume incident to this to be serviced over a 10 year period primarily proposal over a 10 year period through dividends through dividends and management fees from from Bank, management fees and insurance com- Bank. According to the record, the Applicant is mission income. In light of Bank's past earnings borrowing the entire purchase price from Merand its anticipated growth, the projected earnings chants National Bank at Cedar Rapids. The rate on a 10 year loan is 5Vi per cent. The acquisition debt incurred through the present proposal would 'The population figures are as of the 1970 Census. be added to $118,500 of outstanding debt incurred 2 All banking data are as of December 31. 1973, and reflect by Applicant when it originally acquired its 47 all holding company formations and acquisitions approved through August 31, 1974. per cent interest in Bank in 1968. In my opinion, :5The relevant market is approximated by the southwestern the projected earnings for Bank do not provide portion of Butler County and portions of Hardin and Grundy Applicant with the necessary financial flexibility Counties, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 to meet its annual debt servicing requirements and through August 31, 1974.)1 Acquisition of Bank at the same time to deal with any unexpected asset ($16.4 million) would increase Bancorporation's or liquidity problems that might arise at Bank. share of State deposits by .2 per cent and would Furthermore, even if Applicant's projections are not result in a significant increase in the concenrealized, the high level of dividend and manage- tration of banking resources in Colorado. ment fee payout from Bank necessary for Appli- Bank is the 27th largest of 70 banking organicant to service its debt could inhibit growth, thus zations in the Denver banking market2 and holds impairing Bank's financial condition and its ability about .42 per cent of the total commercial bank to meet the banking needs of the community it deposits in that market. The five largest banking serves. organizations therein control approximately 70 per Based on the foregoing reasons, I do not regard cent of the total commercial deposits in the market. the proposal as being in the public interest and, Consummation of the proposal would constitute therefore, would deny the application. Bancorporation's initial entry into the Denver banking market. Bancorporation's present subsidiary bank as well as its recently approved subsidiary bank are each located in different banking COMMERCIAL BANK INVESTMENT markets in excess of 50 miles from Bank, and accordingly, it appears that Bancorporation's ac- COMPANY, quisition of Bank would not eliminate any existing STERLING, COLORADO competition between them. Furthermore, in view ORDER APPROVING ACQUISITION OF BANK of the distances separating these banks, it does not appear that significant competition between Commercial Bank Investment Company them would develop in the future. Although Ban- ("CBIC") and its subsidiary, Commercial Bancorporation could enter the market de novo, the corporation of Colorado ("Bancorporation"), both acquisition of Bank would not have a substantially of Sterling, Colorado, which are bank holding adverse effect on future competition inasmuch as companies within the meaning of the Bank Hold- Bancorporation would merely be gaining a footing Company Act, have applied, in separate aphold entry into the market which would not preplications, for the Board's approval under § 3(a)(3) clude other holding companies from entering the of the Act (12 U.S.C. 1842(a)(3)) to acquire 97.5 market. Finally, consummation herein would proper cent or more of the voting shares of Century vide the necessary resources to enable Bank to Bank and Trust, Denver, Colorado ("Bank"). The compete more effectively with the substantially acquisition will be made by Bancorporation and larger organizations in the market. From the facts as a result CBIC will indirectly acquire voting of record, the Board concludes that competitive shares of Bank. Inasmuch as CBIC's principal considerations are consistent with approval of the asset is its ownership interest in Bancorporation, proposal. the applications are treated herein as the proposed The financial and managerial resources of Banacquisition of Bank by Bancorporation. corporation, its existing banking subsidiary, and Notice of the proposed acquisition, affording its recently approved banking subsidiary are genopportunity for interested persons to submit comerally satisfactory and future prospects for each ments and views, has been given in accordance appear favorable. While Bancorporation proposes with § 3(b) of the Act. The time for filing comto finance the acquisition of Bank through a cash ments and views has expired, and the Board has purchase and an assumption of debt, it appears considered the proposal and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). 1 By order of August 23, 1974, the Board approved applica- Bancorporation controls one bank, Commercial tions by CBIC and Bancorporation to acquire The Bank of Savings Bank of Sterling, Sterling, Colorado, with Colorado, Colorado Springs, Colorado ("Colorado Bank") deposits of $26.2 million, representing 0.4 per (deposits of $7.4 million). Affiliation of both Colorado Bank and Bank would increase Bancorporation's share of total comcent of the total deposits in commercial banks in mercial bank deposits in the State to .7 per cent and it would the State. (All banking data are as of December become the 14th largest banking organization in Colorado. 31, 1973, and reflect bank holding company for- 2The Denver banking market is approximated by Adams, Arapahoe, Denver and Jefferson Counties, and the city of mations and acquisitions approved by the Board Broomfield. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 781 that the amount of total indebtedness of Bancor- company would be increased further upon Banporation is not excessive in view of the overall corporation's consummation of the acquisition of capital position of Bancorporation and the ability Bank. This level of debt, in our opinion, impairs of its subsidiary banks to generate sufficient in- Bancorporation's ability to provide its existing and come to meet the annual debt servicing require- proposed subsidiary banks with financial support ments of Bancorporation. The financial condition if the need should arise in the future. We are aware and managerial resources of Bank have improved that approval of this transaction would have certain somewhat since Bancorporation's intervention ter- public benefits, since it would continue a manageminated the unfavorable influence of Bank's ment at Bank which has been successful in imformer management. Approval of these applica- proving Bank's overall financial condition; nevertions would assure the continuity of present man- theless, we are of the view that the financial plan agement which appears to have the capability and proposed by Applicant is over-leveraged and thus experience to improve Bank's condition. Consid- does not add to the financial strength and resources erations relating to the banking factors lend some of its banking subsidiaries. weight for approval of the proposal. Upon ap- For the foregoing reasons, we would deny the proval of the proposal, Bancorporation will assist applications. Bank in the financing and building of a drive-in facility which would result in added convenience to the residents of the area. Considerations relating HIGH COUNTRY INVESTMENT to the convenience and needs of the community CORPORATION, are consistent with approval of the proposal. It ENGLEWOOD, COLORADO is the Board's judgment that the proposed acquisi- ORDER APPROVING ACQUISITION OF BANK tion would be in the public interest and that the applications should be approved. High Country Investment Corporation, Engle- On the basis of the record, the applications are wood, Colorado, a bank holding company within approved for the reasons summarized above. The the meaning of the Bank Holding Company Act, transaction shall not be made (a) before the thir- has applied for the Board's approval under § tieth calendar day following the effective date of 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acthis Order or (b) later than three months after the quire 100 per cent of the voting shares (less effective date of this Order, unless such period directors' qualifying shares) of Bank of Evergreen, is extended for good cause by the Board, or by Evergreen, Colorado, ("Bank"), a proposed new the Federal Reserve Bank of Kansas City pursuant bank. to delegated authority. Notice of the application, affording opportunity By order of the Board of Governors, effective for interested persons to submit comments and October 15, 1974. views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views Voting for this action: Governors Bucher, Holland, and has expired, and the Board has considered the Wallich. Voting against this action: Vice Chairman Mitchell and Governor Sheehan. Absent and not voting: Chairman application and all comments received in the light Burns. of the factors set forth in § 3(c) of the Act (12 (Signed) THEODORE E. ALLISON, U.S.C. 1842(c)). [SEAL] Secretary of the Board. Applicant controls one bank, First State Bank, Idaho Springs, Colorado ("First State"), which DISSENTING STATEMENT OF ranks 188th among 251 commercial banks in Col- GOVERNORS MITCHELL AND SHEEHAN orado. With $5.2 million in deposits, First State controls less than . 1 of one per cent of the total We would deny the applications by Commercial deposits in commercial banks in the State.1 Since Bank Investment Company and Commercial Ban- Bank is a proposed new bank, consummation of corporation of Colorado ("Bancorporation") to the proposed acquisition would not immediately acquire Century Bank and Trust based upon our increase Applicant's share of commercial bank view that the subject acquisition could have ad- deposits in the State. verse effects on the financial condition of Bancorporation. In particular, we are concerned that the already high level of debt present in the holding 'All banking data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Bank, which is to be located 1.7 miles northwest By order of the Board of Governors, effective of downtown Evergreen, a community on the October 4, 1974. outskirts of the Denver metropolitan area, will primarily serve Evergreen and several nearby Voting for this action: Chairman Burns and Governors Holland, and Wallich. Voting against this action: Governors communities. The only other bank operating in this Mitchell and Sheehan. Absent and not voting: Governor area is located in downtown Evergreen. Appli- Bucher. cant's only other subsidiary bank is located in (Signed) THEODORE E. ALLISON Idaho Springs, which is thirty minutes driving time [SEAL] Secretary of the Board. over mountainous roads from Evergreen. Since Bank is a new bank, consummation of the proposal DISSENTING STATEMENT OF would not eliminate any existing competition. Nor GOVERNORS MITCHELL AND SHEEHAN does it appear that the transaction would have adverse effects on the development of competition In our view, the proposed financial arrangement in the future. Accordingly, competitive consid- for servicing Applicant's present debt and the erations are regarded by the Board as being con- indebtedness that would be incurred by Applicant sistent with approval of the application. in establishing Bank does not provide the neces- The financial and managerial resources and fu- sary financial flexibility for Applicant to service ture prospects of Applicant and its present subsid- its debt as well as to provide its present subsidiary iary are regarded as satisfactory. While the bank and Bank with capital if the need arises in proposed acquisition will require further borrow- the future. ings for Bank's capitalization and facilities, amor- Applicant at the present time has already a high tization of the debt, over a 12 year period, will debt level that resulted in part from Applicant be generated by earnings of Applicant's present increasing its stock in its sole existing subsidiary subsidiary bank and its insurance sales activity. bank, First State Bank, Idaho Springs, Colorado. An equity issue will provide the balance of the The present proposal, which involves the formafunds. In light of these factors and the anticipated tion of a new bank with no proven record of growth of Bank, it appears that Applicant will have profitability, would further increase the Applithe necessary financial flexibility to meet its annual cant's debt and thereby intensify pressures on the debt servicing requirements. Thus, considerations overall financial condition of Applicant. Since relating to banking factors are consistent with Bank has no financial or operating history, we are approval of the application. The addition of a new unable to conclude that its projected earnings are banking alternative to the Evergreen area should reasonable or attainable. Under such circumprovide greater banking convenience for the resi- stances, the debt position of the Applicant could dents of the area. Therefore, considerations relat- impair the financial condition of First State Bank ing to the convenience and needs of the community as well as Bank. We do not regard such a proposal to be served lend some weight toward approval as being in the public interest, and we would deny of the application. It is the Board's judgment that the application. the proposed acquisition would be in the public interest and that the application should be approved. NBC CO., LINCOLN, NEBRASKA On the basis of the record, the application is ORDER DENYING ACQUISITION OF SHARES OF approved for the reasons summarized above. The BANK transaction shall not be made (a) before the thirtieth calendar day following the effective date of NBC Co., Lincoln, Nebraska, a bank holding this Order or (b) later than three months after that company within the meaning of the Bank Holding date, and (c) Bank of Evergreen, Evergreen, Col- Company Act, has applied for the Board's aporado, shall be opened for business not later than proval under § 3(a)(3) of the Act (12 U.S.C. six months after the effective date of this Order. 1842(a)(3)) to acquire 20 per cent or more, but Each of the periods described in (b) and (c) may less than 25 per cent, of the voting shares of Crete be extended for good cause by the Board or by State Bank, Crete, Nebraska ("Bank"). the Federal Reserve Bank of Kansas City pursuant Notice of the application, affording opportunity to delegated authority. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 783 views, has been given in accordance with § 3(b) Bank is the slightly smaller of two banks in of the Act. The time for filing comments and views Crete (population of less than 5,000 persons), an has expired, and the Board has considered the agriculturally-oriented community located approxapplication and all comments received in light of imately 25 miles southwest of Lincoln, Nebraska. the factors set forth in § 3(c) of the Act (12 U.S.C. It is the second largest of nine banks in the relevant 1842(c)). banking market (approximated by Saline County), Applicant, the fifth largest banking organization with about 21 per cent of the total commercial in Nebraska, controls one bank,1 National Bank bank deposits therein. Applicant's banking subof Commerce Trust and Savings Association, Lin- sidiary, Commerce, located in Lincoln, is the coln, Nebraska ("Commerce"), with deposits of second largest of 18 banks in the Lincoln banking $182.7 million, representing 3.4 per cent of the market, with 30 per cent of total commercial bank total deposits held by commercial banks in the deposits in that market. From the facts of record, State.2 Upon acquisition of shares of Bank (de- it appears that neither Commerce nor any other posits of $12.3 million), Bank would become a subsidiary of Applicant and Bank derive any sigsubsidiary of Applicant pursuant to the provisions nificant amount of business from areas served by of § 2(d) of the Act3 and, as such, Applicant's the other, and the Board concludes that approval share of State deposits would increase by only 0.2 of the proposed transaction would not eliminate per cent, while its rank among Nebraska's banking any significant existing or future competition beorganizations would remain unchanged. It appears tween Applicant and Bank, nor would it have an that consummation of the proposal would not adverse effect on other area banks. result in a significant increase in the concentration Under the Bank Holding Company Act, the of banking resources in the State. Applicant's Board is required to take into consideration the nonbanking subsidiaries engage in industrial financial and managerial resources and future banking, mortgage banking, personal property prospects of both the Applicant holding company leasing, and as agent for the sale of credit life and the bank to be acquired, which process necesinsurance in connection with extensions of credit sarily includes a consideration of the effects the by Applicant's subsidiaries. acquisition would have on the operations of the bank involved. Under the circumstances of this 1 Nebraska banking laws prohibit the formation or operation case, the Board finds that these considerations, as of multi-bank holding companies in the State. Principals of Applicant are also shareholders, officers and/or directors of hereinafter discussed, lend weight for denial of the seven affiliated one-bank holding companies in Nebraska. The application. Board has under consideration the question whether Applicant may control or may be presumed to control, under § 2 of The present financial and managerial resources the Act and the provisions of the Board's Regulation Y, the of Applicant and its banking subsidiary are conaforementioned seven affiliated Nebraska banks, and Bank; the sidered to be generally satisfactory and future Board's determination of that question will be made at a later date. prospects appear favorable. However, the Board 2 All banking data are as of December 31, 1973, and reflect on many previous occasions, has indicated its bank holding company formations and acquisitions approved position that a bank holding company should be by the Board through August 31, 1974. ''Section 2(d) of the Act defines a "subsidiary" with respect a source of financial and managerial strength for to a specified bank holding company as . . any company the banks in its system and that every proposed 25 per centum or more of whose voting shares ... is directly or indirectly owned or controlled by such bank holding com- acquisition should be closely examined to deterpany, or is held by it with power to vote. . . ." In the instant mine whether consummation thereof would serve application, Applicant proposes to acquire at least 20 per cent the best interests of the public as well as the banks of the voting shares of Bank; in addition, Applicant's subsidiary bank, Commerce, acting in a fiduciary capacity, recently in the holding company system. With regard to acquired sole discretionary voting rights with respect to 14 the instant proposal, the Board finds that consumper cent of Bank's shares. Accordingly, consummation of this proposal would result in Bank becoming a subsidiary of Ap- mation would not serve the best interests of the plicant in that Applicant would have voting control, directly public nor promote the efficient and harmonious or indirectly, of more than 25 per cent of Bank's voting shares. operations of Bank. Applicant seeks to acquire less However, under the provisions of § 225.3(c) of Regulation Y, Applicant has made an unconditional commitment to divest than a majority interest in Bank and, as a result, those shares of Bank held in a fiduciary capacity before upon consummation of the proposal Applicant December 21, 1975. would not be in a position of control from which As indicated in footnote 1, Nebraska banking laws prohibit multi-bank holding companies; inasmuch as Bank shares held to influence significantly Bank's management or in a fiduciary capacity are exempt by statute, it appears that to expand its operations and enhance its financial Applicant would remain in compliance with applicable State law if the proposal herein were consummated. condition. In fact, the controlling shareholder of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Bank is opposed to the present proposal, thus SOUTHEAST BANKING CORPORATION, indicating that Board approval of the proposal may MIAMI, FLORIDA tend to perpetuate dissension in the management of Bank.4 Under these circumstances, the Board ORDER DENYING ACQUISITION OF BANK cannot approve a proposal which would only per- Southeast Banking Corporation, Miami, petuate or aggravate dissension in Bank's man- Florida, a bank holding company within the agement and which would not enable Applicant meaning of the Bank Holding Company Act, has to implement any positive changes either in Bank's applied for the Board's approval under § 3(a)(3) condition or the services which Bank offers to its of the Act (12 U.S.C. 1842(a)(3)) to acquire 23 customers. In addition, the proposal appears to be per cent of the voting shares of Bank of Lake a questionable investment for Applicant in light Buena Vista, Lake Buena Vista, Florida of the dividend moratorium recently instituted by ("Bank"), a proposed new bank. Bank's controlling shareholder. Consummation of Notice of the application, affording opportunity the proposal could in the long-run detract from for interested persons to submit comments and Applicant's overall financial condition since it ap- views, has been given in accordance with § 3(b) pears that Applicant would be advancing funds for of the Act. The time for filing comments and views the purchase of Bank's stock with no foreseeable has expired, and the application and all comments prospect that such investment will generate income received have been considered by the Board in for the holding company and its operations. Fi- light of the factors set forth in § 3(c) of the Act nally, Applicant's acquisition of a substantial mi- (12 U.S.C. 1842(c)). nority interest of Bank may preclude another Applicant, the largest banking organization in ownership group from purchasing control of Bank Florida, controls 36 banks with aggregate deposits and thereby working to strengthen Bank's financial of approximately $2.1 billion, representing about condition. Under the above circumstances, these 9.4 per cent of the total deposits in commercial considerations lend weight for denial of the appli- banks in the State.1 Since Bank is a proposed new cation. Since it further appears that no benefits bank, consummation of the proposed acquisition to the public would result from approval of this would not immediately increase Applicant's share application, the Board concludes that convenience of commercial bank deposits in the State and and needs considerations lend no weight toward therefore would not immediately result in an inapproval of the application. crease in the concentration of banking resources On the basis of all the facts in the record, and in Florida. in light of the factors set forth in § 3(c) of the Bank is to be located in Lake Buena Vista, a Act, it is the Board's judgment that approval of community currently under construction and lothe proposal would not be in the public interest. cated in the Walt Disney World entertainment Accordingly, the application is denied for the complex near Orlando, Florida. Bank, therefore, reasons summarized above. would be located in the Orlando banking market, By order of the Board of Governors, effective which is approximated by Orange County and the October 21, 1974. southern half of Seminole County. Applicant, the fifth largest banking organization operating in the Voting for the action: Vice Chairman Mitchell, Governors Sheehan, Holland, and Wallich. Absent and not voting: Chair- Orlando market, controls three banks with aggreman Burns and Governor Bucher. gate deposits of $83 million representing approxi- (Signed) GRIFFITH L. GARWOOD, mately 7 per cent of total market deposits. [SEAL] Assistant Secretary of the Board. Since Bank is a proposed new bank, Applicant's acquisition of Bank would have no immediate effect on Applicant's share of commercial bank deposits in the Orlando market; nor would it have any adverse effects on existing competition with 4The record reveals that three principals of Applicant ac- respect to this market. However, as discussed quired 43 per cent of Bank's stock in 1973 with the expectation of acquiring the balance of its shares. However, it appears more fully below, acquisition of Bank by Applithat the controlling shareholder and president of Bank is unwilling to sell any portion of his shares of Bank to Applicant or to any of its principals. In addition, the controlling shareholder has instituted a moratorium on the declaration of Bank 1 All banking data are as of December 31, 1973, and reflect dividends in an apparent attempt to encourage Applicant's bank holding company acquisitons approved through August principals to dispose of their existing shares of Bank. 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 785 cant would result in adverse competitive effects companies are already significantly represented in due to the Board's decision today, in a related the market as well as the State and, therefore, the matter, approving the acquisition of 50.4 per cent anticompetitive effects of this proposal are comof the voting shares of Bank by Sun Banks of pounded in that cooperation flowing from the Florida.2 proposed joint ownership of Bank would likely In view of the Board's action approving the Sun influence the other operations by these two bank Banks of Florida proposal, the extent to which the holding companies in the Orlando banking market proposal herein would have adverse effects on and in other markets in the State in which the two competition depends on the likelihood of either bank holding companies compete. It would apbank holding company expanding in the market pear, therefore, that to allow the 1st and 5th largest without the assistance of the other and the extent bank holding companies in the relevant market, of competition already existing between the two holding in the aggregate about 46 per cent of bank holding companies in the relevant market. market deposits, to join together in that same In light of the long-run projections for develop- market in the establishment of a new bank would ment and growth in the Orlando banking market, result in significant adverse effects on competition particularly in and around the Walt Disney World and therefore, would not be in the public interest. Complex, it appears that both Applicant and Sun Accordingly, the Board concludes that consum- Banks would be likely to expand de novo in the mation of the proposed acquisition would have area. Moreover, either of the organizations has the significant adverse effects on competition. Unless managerial and financial resources, independent of such anticompetitive effects are outweighed in the the other, for such meaningful expansion. Since public interest by the probable effect of the transthere are several potential bank sites available action in meeting the convenience and needs of close to the Walt Disney Complex, approval of the communities to be served, the application must this proposal would, in the Board's view, signifi- be denied. cantly reduce the prospects that Applicant would The financial and managerial resources and attempt de novo expansion in the area. future prospects of Applicant and its subsidiaries On a previous occasion where the Board per- are satisfactory and consistent with approval. mitted the ownership of a nonbanking subsidiary Bank, as a proposed new bank, has no financial by two bank holding companies the circumstances or operating history; however, its future prospects were such that there were significant public bene- as a subsidiary of Sun Banks of Florida appear fits to be derived from the proposal that could not favorable and are not dependent on this Applicant be easily derived from either organization acting acquiring an ownership interest in Bank. Accordindependently and the organizations were not ingly, the Board concludes that banking factors meaningful competitors.3 The public benefits that do not lend weight toward approval of this applimay be gained through concurrent ownership of cation. a company arise where neither co-owner would As noted by the Board in its Order of today's have the ability to enter a market but for the date approving the related application of Sun assistance of the other co-owner. In connection Banks of Florida to acquire Bank, considerations with this application, however, either Applicant relating to the convenience and needs of the com- (the largest bank holding company in the State) munity to be served lend weight toward approval or Sun Banks of Florida (the third largest bank of that application. However, the benefits to be holding company in the State) has the ability to derived from consummation of that proposal are expand in the market de novo without the assist- not dependent on the Applicant in this case being ance of the other. Further, both bank holding permitted an interest in Bank. Thus, the Board is unable to conclude, under the circumstances of this application, that considerations relating to 2Board's Order of October 1, 1974, approving the acquisiconvenience and needs outweigh the adverse eftion of 50.4 per cent of the voting shares of Bank by Sun Banks of Florida. fects this proposal would have upon competition. ;{See Board's Order approving the acquisition of American Therefore, it is the Board's judgment that con- Cattle and Crop Services Corporation, Guyman, Oklahoma, summation of the proposed acquisition would not by The Fort Worth National Corporation, Fort Worth, Texas, be in the public interest and that the application and Shawmut Association, Inc., Boston, Massachusetts, 60 Fed. Res. BULLETIN 382 (May, 1974). The previous case should be denied. considered by the Board involved the joint formation by two On the basis of the record, the application is bank holding companies of a nonbanking concern, whereas the proposal herein contemplates joint ownership of a bank. denied for the reasons summarized above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 By order of the Board of Governors, effective largest banking organization operating in the Or- October l, 1974. lando market, controls seven banks with aggregate deposits of $476.4 million representing approxi- Voting for this action: Vice Chairman Mitchell and Gover- mately 39.5 per cent of total market deposits. nors Sheehan, Bucher, Wallich, and Holland. Absent and not While Applicant does presently operate in the voting: Chairman Burns. Orlando banking market, Applicant's nearest sub- (Signed) THEODORE E. ALLISON, sidiary bank is located approximately 12 miles [SEAL] Secretary of the Board. north of Bank. Since Bank is a proposed new bank, Applicant's acquisition of Bank would have no immediate effect on Applicant's share of commercial bank deposits in the Orlando market; nor SUN BANKS OF FLORIDA, INC., would it have any adverse effects on existing or ORLANDO, FLORIDA potential competition with respect to this market. In view of the long-run projections for continued growth in the Orlando banking market, it does not ORDER APPROVING ACQUISITION OF BANK appear that acquisition of Bank by Applicant Sun Banks of Florida, Inc., Orlando, Florida, would significantly reduce the prospects of future a bank holding company within the meaning of expansion or entry by other banking organizations. the Bank Holding Company Act, has applied for While Applicant will have control of the only bank the Board's approval under § 3(a)(3) of the Act in the Disney World complex, other potential bank (12 U.S.C. 1842(a)(3)) to acquire 50.4 per cent sites still remain available for de novo entry within of the voting shares of Bank of Lake Buena Vista, the proximity of the Disney World complex. Lake Buena Vista, Florida ("Bank"), a proposed In a related matter, the Board has today denied new bank. the acquisition of 23 per cent of the voting shares Notice of the application, affording opportunity of Bank by Southeast Banking Corporation, for interested persons to submit comments and Miami, Florida.2 In that Order the Board indicated views, has been given in accordance with § 3(b) that the concurrent ownership of a subsidiary bank of the Act. The time for filing comments and views by two bank holding companies is supportable and has expired and the application and all comments in the public interest only where the circumstances received have been considered by the Board in are such that significant public benefits would be light of the factors set forth in section 3(c) of the gained, and that the benefits would not be available Act (12 U.S.C. 1842(c)). except through such joint ownership. From the Applicant, the third largest banking organization record, it appears that both Applicant and Southin Florida, presently controls 43 banks with ag- east Banking Corporation have the resources to gregate deposits of $ 1.6 billion, representing about expand within the relevant market de novo and, 7.2 per cent of deposits in commercial banks in therefore, the public interest would not be served, the State.1 Since Bank is a proposed new bank, nor would competition be fostered, by permitting consummation of the proposed acquisition would these two bank holding companies to expand in not immediately increase Applicant's share of the market de novo through the concurrent ownercommercial bank deposits in the State and there- ship of Bank. Further, the adverse effects on fore would not immediately result in an increase competition of such a joint ownership arrangement in the concentration of banking resources in are even more significant when viewed in light Florida. of Applicant's and Southeast Banking Corpora- Bank is to be located in Lake Buena Vista, a tion's rankings in the market (1st and 5th respeccommunity currently under construction and lo- tively) and in the State (3rd and 1st respectively). cated in the Walt Disney World entertainment However, with respect to this particular applicomplex near Orlando, Florida. Bank, therefore, cation, the Board finds that ownership of Bank would be located in the Orlando banking market, by Applicant creates no similar adverse competiwhich is approximated by Orange County and the tive effects and finds that approval of this applicasouthern half of Seminole County, Applicant, the 2 See Board's order of October 1, 1974. denying the appli- 'All banking data are as of December 31. 1973. and repre- cation of Southeast Banking Corporation. Miami, Florida, to sent bank holding company acquisitions approved through acquire 23 per cent of the voting shares of Bank of Lake Buena August 31. 1974. Vista. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 787 tion would facilitate the opening of Bank as a FARMERS STATE CORPORATION, subsidiary of Applicant. Accordingly, the Board MOUNTAIN LAKE, MINNESOTA concludes that consummation of the proposed ac- ORDER DENYING FORMATION OF BANK HOLDING quisition by Applicant would not have any signifi- COMPANY AND ACQUISITION OF FARMERS STATE cant adverse effects on competition in any relevant INSURANCE AGENCY area, and that such considerations are consistent with approval of the application. Farmers State Corporation, Mountain Lake, The financial and managerial resources and fu- Minnesota, has applied for the Board's approval ture prospects of Applicant and its subsidiary under § 3(a)(1) of the Bank Holding Company Act banks are regarded as satisfactory. Bank, as a (12 U.S.C. 1842(a)(1)) of formation of a bank proposed new bank, has no financial or operating holding company through acquisition of 80 per history; however, its future prospects as a subsidi- cent of the voting shares of Farmers State Bank ary of Applicant appear favorable. Considerations of Mountain Lake, Mountain Lake, Minnesota relating to the banking factors are consistent with ("Bank"). approval of the application. Considerations relat- At the same time, Applicant has applied for the ing to the convenience and needs of the community Board's approval under § 4(c)(8) of the Act (12 to be served lend weight toward approval of the U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the application. The addition of a new banking alter- Board's Regulation Y, to acquire the assets of native in this developing sector of the market Willis D. Schroeder Insurance Agency, D/B/A would provide greater convenience to the public, Farmers State Insurance Agency, Mountain Lake, and affiliation with Applicant would permit Bank Minnesota, and thereby to engage in the activities to provide its customers with new services not of a general insurance agency in Mountain Lake, normally made available by new banks. It is the Minnesota (population of less than 5,000). The Board's judgment that the proposed acquisition is operation by a bank holding company of a general in the public interest and that the application insurance agency in a community with a populashould be approved. tion not exceeding 5,000 is an activity that the On the basis of the record, the application is Board has previously determined to be closely approved for the reasons summarized above. The related to banking (12 CFR 225.4(a)(9)(iii)(a)). transaction shall not be made (a) before the thir- Notice of the applications, affording opportunity tieth calendar day following the effective date of for interested persons to submit comments and this Order or (b) later than three months after that views, has been given in accordance with §§3 date, and (c) Bank of Lake Buena Vista, Lake and 4 of the Act (39 Federal Register 27756). The Buena Vista, Florida, shall be opened for business time for filing comments and views has expired, not later than six months after the effective date and all comments and views received have been of this Order. Each of the periods described in considered by the Board in light of the factors set (b) and (c) may be extended for good cause by forth in § 3(c) of the Act (12 U.S.C. 1842(c)) the Board, or by the Federal Reserve Bank of and the public interest factors specified in § 4(c)(8) Atlanta pursuant to delegated authority. of the Act (12 U.S.C. 1843(c)). By order of the Board of Governors, effective Applicant, a nonoperating corporation with no October 1, 1974. subsidiaries, was organized for the purpose of becoming a bank holding company through acqui- Voting for this action: Vice Chairman Mitchell and Gover- sition of Bank and operating an insurance agency. nors Sheehan, Bucher, Wallich, and Holland. Absent and not Bank ($7.5 million in deposits) is the fourth largest voting: Chairman Burns. of eight banks operating in the relevant banking (Signed) THEODORE E. ALLISON, market1 and controls approximately 12.4 per cent [SEAL] Secretary of the Board. of the total deposits held by commercial banks in the market.2 Upon acquisition of Bank, Applicant would control 0.1 per cent of the total commercial 'The relevant banking market is approximated by the eastern ORDERS UNDER SECTIONS 3 AND 4 OF half of Cottonwood County and the western half of Watonwan BANK HOLDING COMPANY ACT County. 2Banking data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 bank deposits in the State. Since the purpose of and they do not outweigh the above-mentioned the proposed transaction is essentially a reorgani- adverse banking factors connected with this prozation to effect a transfer of the control of Bank posal. from individuals to a corporation controlled by the On the basis of all the facts in the record, and same individuals, consummation of the proposal in light of the factors set forth in § 3(c) of the would not eliminate any existing competition, nor Act, it is the Board's judgment that the proposed would it appear to have any adverse effects on acquisition would result in a bank holding comother banks or on the development of future com- pany with financial resources inadequate to service petition in the relevant market. Accordingly, its debt while maintaining Bank's capital account competitive considerations are consistent with ap- and that such condition could impair the ability proval of the application. of Bank to meet the needs of the community which Under the Bank Holding Company Act, the it serves. Accordingly, the Board concludes that Board is required to take into consideration the consummation of this proposal would not be in financial and managerial resources and future the public interest and that the application should prospects of the proposed holding company and be denied. the bank to be acquired. In the exercise of that Applicant proposes to operate a general insurresponsibility, the Board finds that considerations ance agency business on Bank's premises through relating to the financial resources of Applicant the acquisition of the Willis D. Schroeder Insurwarrant denial of the application. Applicant's ance Agency (doing business as the Farmers State earnings prospects are heavily dependent upon the Insurance Agency). Approval of the proposal earnings of Bank; Applicant expects to service a would permit Applicant to continue to offer Bank's debt which involves principal and interest totaling customers the convenience of obtaining banking $1.4 million over a 15-year period primarily and insurance services in conjunction with each through dividends from Bank. The projected earn- other. However, in view of the Board's finding ings of Applicant do not, in the Board's view, that the application for formation of the bank provide Applicant with the necessary financial holding company must be denied, the Board's flexibility to meet its annual debt servicing re- consideration of the application to engage in inquirements as well as any unexpected problems surance activities hereby becomes moot. that might arise at Bank. This factor strongly By order of the Board of Governors, effective suggests that the financial requirements of Appli- October 4, 1974. cant's proposal could place an undue strain on the Voting for this action: Chairman Burns and Governors financial condition of Bank and thus impair Bank's Mitchell, Bucher, Holland, and Wallich. Absent and not votability to remain a viable banking organization in ing: Governor Sheehan. meeting the banking needs of the community (Signed) THEODORE E. ALLISON, which it serves. Such considerations relating to [SEAL] Secretary of the Board. the financial condition and prospects of Applicant, in addition to other facts of record, lend substantial PIEPER BANCORP, INC., weight toward denial of the application. While the CALHAN, COLORADO Board recognizes that denial of the application ORDER APPROVING FORMATION OF BANK would not necessarily affect immediately the con- HOLDING COMPANY AND ACQUISITION OF A trol of Bank, the Board cannot sanction the use GENERAL INSURANCE AGENCY of a holding company structure that, because of limited financial resources, could impair the fi- Pieper Bancorp, Inc., Calhan, Colorado, has nancial condition of the bank to be acquired, nor applied for the Board's approval under § 3(a)(1) would the public interest be served by such Board of the Bank Holding Company Act (12 U.S.C. action. 1842(a)(1)) of formation of a bank holding Applicant has proposed some changes which company through acquisition of 94 per cent of the could ultimately benefit the community such as voting shares of Farmers State Bank of Calhan, raising the interest rates on savings and time de- Calhan, Colorado ("Bank"). At the same time, posits and lengthening banking hours. However, Applicant has applied for the Board's approval these proposals are likely to be implemented under § 4(c)(8) of the Act and § 225.4(b)(2) of whether ownership of Bank is direct or indirect, the Board's Regulation Y to acquire the assets of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 789 Pieper and Fosha Insurance Agency, Calhan, Col- for loans to the community. Therefore, considorado ("Agency") and thereby engage in permis- erations relating to the convenience and needs of sible insurance agency activities in Calhan (popu- the community to be served lend some weight lation of 465). The operation by a bank holding toward approval. It is the Board's judgment that company of a general insurance agency in a com- consummation of the transaction would be in the munity with a population not exceeding 5,000 is public interest and that the application to acquire an activity that the Board has previously deter- Bank should be approved. mined to be closely related to banking (12 CFR Agency is a general insurance agency and con- 225.4(a)(9)(iii)(a)). ducts its business from the premises of Bank in Notice of receipt of these applications, affording Calhan. Agency will be subsequently organized an opportunity for interested persons to submit as a separate subsidiary. The continued availability comments and views, has been given in accor- of these services through Applicant assures the dance with §§ 3 and 4 of the Act (39 Federal residents of the Calhan area of a convenient source Register 28329). The time for filing comments and of insurance agency services, which factor the views has expired, and the Board had considered Board regards as being in the public interest. There the applications and all comments received in the is no evidence in the record indicating that conlight of the factors set forth in § 3(c) of the Act summation of the proposed acquisition of the gen- (12 U.S.C. 1842(c)) and the considerations speci- eral insurance agency would result in any undue fied in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). concentration of resources, unfair competition, Applicant is a recently organized corporation conflicts of interests, unsound banking practices, formed for the purposes of becoming a bank hold- or other adverse effects on the public interest. ing company through the purchase of Bank's stock Based on the foregoing and other considerations and of operating as a general insurance agency. reflected in the record, the Board has determined Bank (deposits of $7.4 million),1 the only bank that the considerations affecting the competitive in Calhan, controls 1.4 per cent of total deposits factors under § 3(c) of the Act and the balance in commercial banks in the relevant banking mar- of the public interest factors the Board must conket (which is approximated by El Paso County) sider under § 4(c)(8) both favor approval of Apand is the 12th largest of 17 banking organizations plicant's proposlas. in the market. Since the proposal represents a Accordingly, the applications are approved for restructuring of ownership of Bank and Agency the reasons summarized above. The acquisition of and Applicant has no present subsidiaries, con- Bank shall not be made before the thirtieth calensummation of the proposal would have no adverse dar day following the effective date of this Order; effects on existing or potential competition. and neither the acquisition of Bank nor the acqui- Therefore, the Board concludes that competitive sition of Agency shall be made later than three considerations are consistent with approval of the months after the effective date of this Order, unless application. such period is extended for good cause by the The financial and managerial resources and fu- Board, or by the Federal Reserve Bank of Kansas ture prospects of Applicant, which will depend City pursuant to delegated authority. The determiinitially upon those of Bank, are considered gen- nation as to Applicant's insurance activities is erally satisfactory and consistent with approval. subject to the conditions set forth in section The debt that will be incurred by Applicant as a 225.4(c) of Regulation Y and to the Board's auresult of this proposal appears to be readily serv- thority to require reports by, and make examinaiceable from the income to be derived from Bank tions of, holding companies and their subsidiaries and Applicant's insurance activities without hav- and to require such modifications or termination ing an adverse effect on the financial condition of of the activities of a bank holding company or Bank. Accordingly, banking factors are regarded any of its subsidiaries as the Board finds necessary as being consistent with approval of the applica- to assure compliance with the provisions and purtion. Consummation of the proposed transaction poses of the Act and the Board's regulations and will assure continuation of local management fa- orders issued thereunder, or to prevent evasion miliar with the operation of Bank, and Applicant thereof. plans to enable Bank to increase funds available By order of the Board of Governors, effective October 16, 1974. 'Banking data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Voting for this action: Governors Bucher, Holland, and Applicant and other parties to the hearings on its Wallich. Voting against this action: Vice Chairman Mitchell application of the motion for limited reconand Governor Sheehan. Absent and not voting: Chairmansideration. Comments on the motion were received Burns. from the Applicant, the Committee to Preserve (Signed) THEODORE E. ALLISON, Consumer Options, Ticor Mortgage Company and [SEAL] Secretary of the Board. PMI Mortgage Insurance Company. By letter dated October 11, 1974, Applicant DISSENTING STATEMENT OF informed the Board that it would have no objection GOVERNORS MITCHELL AND SHEEHAN to a limited modification of the July 3rd Order In our view, considerations relating to the fi- rescinding Board approval of Applicant's request nancial resources of Pieper Bancorp, Inc., warrant to act as agent for the sale of mortgage guaranty denial of the proposal to acquire Farmers State insurance. Bank of Calhan ("Bank"). Applicant's earnings Accordingly, the Board hereby modifies its prospects are primarily dependent upon the earn- Order of July 3, 1974, by rescinding its approval ings of Bank; Applicant proposes to service an for The Alabama Financial Group, Inc., to act as acquisition debt of $710,000 over a 12-year period agent in the sale of mortgage guaranty insurance. primarily through income derived from dividends Should Applicant wish to engage in this activity from Bank. The dividend payout required from in the future, it is not barred from submitting a Bank for Applicant to service its debt represents, new application to the Board, In all other respects in our opinion, an excessive fixed charge on the the Board reaffirms its Order of July 3rd. earnings of Bank that could jeopardize the main- Since the Board has rescinded the very portion tenance of the capital adequacy of the bank itself. of its Order for which Petitioners have sought Thus, consummation of the proposed acquisition reconsideration, the Board dismisses Petitioners' could result in adverse effects on Bank's financial motion as moot. condition and thereby impair Bank's ability to By order of the Board of Governors, effective render service to the communtiy. October 29, 1974. We cannot sanction the use of a holding com- Voting for this action: Chairman Burns and Governors pany structure that, because of its limited financial Sheehan, Bucher, Holland, and Wallich. Absent and not votresources, could impair the financial conditon of ing: Governor Mitchell. the bank to be acquired. Thus, we do not regard (Signed) THEODORE E. ALLISON, this proposal as being in the public interest, and [SEAL] Secretary of the Board. we would deny the application. NATIONAL CENTRAL FINANCIAL ORDERS UNDER SECTION 4 OF CORPORATION, BANK HOLDING COMPANY ACT LANCASTER, PENNSYLVANIA THE ALABAMA FINANCIAL GROUP, INC., ORDER APPROVING ACQUISITION OF BIRMINGHAM, ALABAMA PRINCETON LIFE INSURANCE COMPANY ORDER MODIFYING INSURANCE ACTIVITIES National Central Financial Corporation, Lan- In an order dated July 3, 1974, the Board of caster, Pennsylvania, a bank holding company Governors of the Federal Reserve System ap- within the meaning of the Bank Holding Company proved the application of The Alabama Financial Act, has applied for the Board's approval under Group, Inc., Birmingham, Alabama ("Appli- § 4(c)(8) of the Act and § 225.4(b)(2) of the cant") (now Southern Bancorporation), to engage Board's Regulation Y to acquire all of the voting de novo in certain insurance agency activities, shares of Princeton Life Insurance Company including acting as agent for the sale of mortgage ("Company"), Camp Hill, Pennsylvania, and guaranty insurance. In a motion dated July 24, thereby to engage in the underwriting of credit life 1974, certain mortgage guaranty insurance under- and credit accident and health insurance in conwriters ("Petitioners") requested the Board to nection with extension of credit by Applicant's reconsider its Order of July 3rd insofar as it subsidiaries. Such activity has been determined by permitted Applicant to engage in certain insurance the Board to be closely related to banking (12 CFR activities dealing with mortgage guaranty insur- 225.4(a)( 10)). ance. On July 30, 1974, the Board informed the Notice of the application, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 791 for interested persons to submit comments and cent below the maximum rate of 50 cents per $100 views on the public interest factors, has been duly of coverage as authorized by Pennsylvania. Appublished (39 F.R. 28570). The time for filing plicant also proposes to eliminate certain exclucomments and views has expired, and the Board sions from its policy coverage and estimates the had considered the application and all comments value of these policy improvements will be the received in light of the public interest factors set equivalent of a 9 per cent rate reduction. The forth in § 4(c)(8) of the Act (12 U.S.C. Board views the reduction in the rate for credit 1843(c)(8)). life insurance, as well as the proposed improve- Applicant controls one bank with total deposits ments in policy coverage to be considerations of $763 million representing about 2 per cent of favorable to the public interest. The Board contotal deposits in commercial banks in Pennsyl- cludes, therefore, that such public benefits, in the vania. Applicant is also engaged, through subsidi- absence of any evidence in the record indicating aries, in mortgage banking and commercial fi- the presence of any adverse statutory factors pronance activities. Company is chartered under vides support for approval of the application. Pennsylvania law to engage in the underwriting Based upon the foregoing and other considof ordinary life insurance. However, since 1971 erations reflected in the record, the Board has Company has only written the minimal amount of determined, in accordance with the provisions of insurance and carried the minimal amount of assets § 4(c)(8), that consummation of this proposal can that would permit it to qualify under the applicable reasonably be expected to produce benefits to the laws of Pennsylvania and, therefore, is essentially public that outweigh possible adverse effects. Aca "shell" company. Upon consummation of the cordingly, the application is hereby approved. This proposal, Company will engage only in the un- determination is subject to conditions set forth in derwriting of credit life and credit accident and § 225.4(c) of Regulation Y and to the Board's health insurance directly related to consumer loans authority to require such modification or terminamade by Applicant. Since Company has not pre- tion of the activities of the holding company or viously engaged in the underwriting of such insur- any of its subsidiaries as the Board finds necessary ance, the effect of the subject proposal is, in to insure compliance with the provisions and puressence, the introduction of a de novo competitor poses of the Act and the Board's regulations and into the activity of underwriting credit life and orders issued thereunder or to prevent evasion credit accident and health insurance in those per- thereof. sonal loan markets in which Applicant competes.1 The transaction shall be made not later than Credit life and credit accjdent and health insur- three months after the effective date of this Order ance is generally made available by banks and unless such period is extended for good cause by other lenders and is designed to insure payment the Board or by the Federal Reserve Bank of of a loan in the event of death or disability of Philadelphia pursuant to delegated authority. a borrower. In connection with the addition of the By order of the Board of Governors, effective underwriting of such insurance to the list of per- October 1, 1974. missible activities for bank holding companies, the Voting for this action: Vice Chairman Mitchell and Gover- Board has stated: nors Sheehan, Bucher, and Holland. Absent and not voting: To insure that engaging in the underwriting of credit life and Chairman Burns and Governor Wallich. credit accident and health insurance can reasonably be expected to be in the public interest, the Board will only approve (Signed) THEODORE E. ALLISON, applications in which an Applicant demonstrates that approval [SEAL] Secretary of the Board. will benefit the consumer or result in other public benefits. Normally, such a showing would be made by projected reduc- UB FINANCIAL CORP., tion in rates or increase in policy benefits due to bank holding company performance of this service. PHOENIX, ARIZONA Applicant proposes to underwrite through Com- ORDER DENYING ACQUISITION OF ANVIL THRIFT pany credit life insurance at rates that are 3.3 per UB Financial Corp., Phoenix, Arizona, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board's approval, under § 4(c)(8) of the Act and § 'Applicant's only lending subsidiary, National Central Bank, 225.4(b)(2) of the Board's Regulation Y, to acoperates in the Reading, Harrisburg-Carlisle, York, Lancaster, and Philadelphia-Camden banking markets. quire all of the voting shares of Anvil Thrift Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 ("Anvil"), Glendale, California, a company that two counties, Anvil competes with a large number engages in the activities of an industrial loan of other lenders, including over 100 commercial company, as permitted under the laws of Califor- banks and 200 finance companies. Anvil, with nia, and acts as an insurance agent or broker with $1.6 million in loans outstanding (as of December respect to credit-related insurance directly related 31, 1973), is not a major competitor in these to loans and extensions of credit by Anvil Thrift. markets. In view of the large number of alternative Such activities have been determined by the Board sources of consumer credit in Los Angeles and to be closely related to banking (12 CFR Orange Counties, consummation of the proposed 225.4(a)(2) and (9)). acquisition would not have any significant adverse Notice of the application, affording opportunity effect on potential competition in any relevant for interested persons to submit comments and area. views on the public interest factors, has been duly In order to approve the subject application, § published (39 Federal Register 1872). The time 4(c)(8) of the Bank Holding Company Act requires for filing comments and views has expired, and the Board to find that Applicant's acquisition of the Board had considered all comments received Anvil can reasonably be expected to produce benin the light of the public interest factors set forth efits to the public such as greater convenience, in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). increased competition, or gains in efficiency, that Applicant has one subsidiary bank, United Bank outweigh possible adverse effects, such as undue of Arizona ("Bank"), Phoenix, Arizona, the fifth concentration of resources, decreased or unfair largest bank in Arizona, with deposits of about competition, conflicts of interests, or unsound $243 million, representing 4.2 per cent of the total banking practices. In applying this test, the Board deposits in commercial banks in the State.1 Appli- concludes that denial of the application is warcant also controls a nonbank subsidiary which ranted . engages in mortgage banking activities, H. S. In the past few years, Anvil's total assets, total Pickrell Company, Phoenix, Arizona. capital, and operating income have decreased. Anvil (total assets of $1.9 million as of De- Under the proposal, Applicant would contribute cember 31, 1973) operates one office in Glendale, new capital to Anvil and, through Applicant, Anvil California, and has an application pending for would presumably have greater access to addiapproval of a second location in Santa Ana, Cali- tional sources of funds. However, during the same fornia. Anvil engages in the activities of an indus- period of time that Anvil's operations have contrial loan company, as permitted under the laws tracted, Applicant has experienced significant of California, including issuance of investment growth in its assets without a comparable increase certificates and passbooks; making loans and pur- in its capital. While there has been some recent chasing, selling, and discounting notes, trust re- improvement in Applicant's overall capital posiceipts, choses in action, chattel mortgages, condi- tion in relation to its total assets, further augmentional sales contracts, security agreements, mort- tation of Applicant's capital position is, in the gages and deeds of trust. Anvil also acts as insur- Board's view, warranted and would be clearly ance agent or broker with respect to the sale of preferable to the outlay of funds incident to this credit life, credit accident, health, disability, au- proposal. tomobile collision, liability, uninsured motorist, The Board has on numerous occasions stated towing and labor, casualty, and mortgage re- that one of the primary purposes of a holding demption and mortgage cancellation insurance; all company is to serve as a source of financial directly related to loans and extensions of credit strength for its subsidiary banks. In the Board's made by Anvil Thrift. judgment, this proposal to acquire Anvil could Neither of Applicant's subsidiaries operate in detract from Applicant's overall financial condition Los Angeles and Orange Counties, California, the and reduce Applicant's ability to provide addimarkets served by Anvil. Accordingly, consum- tional financial support to its subsidiary bank. mation of this proposal would not eliminate any The Board has recently expressed its general significant amount of existing competition. Fur- concern with the rapid expansion of some U.S. thermore, as a source of consumer credit in the banking organizations in both domestic and foreign markets and the implications of such ex- 'Banking data are as of December 31, 1973. pansion for the capital positions of the institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 793 In cases where a banking organization has experi- Notice of receipt of the application, affording enced significant growth in assets without a con- an opportunity for interested persons to submit comitant increase in its capital accounts and such comments or views, or request a hearing, was growth has been funded by potentially volatile published in the Federal Register (38 F.R. 1305). sources of funds, the Board, under current eco- Time for filing comments, views, and requests for nomic and financial conditions, gives additional a hearing has expired. No comments have been weight to considerations of whether proposals that received nor has any party requested a hearing. would utilize funds for further expansion rather Section 4(d) of the Act provides that, to the than for improvement of the organization's capital extent such action would not be substaritially at position are consistent with the public interest variance with the purposes of the Act and subject standard of § 4(c)(8) of the Act. Under the cir- to such conditions as the Board considers necescumstances of this case, the Board does not regard sary to protect the public interest, the Board may this proposal as being in the public interest. While grant an exemption from the provisions of § 4 of Applicant's acquisition of Anvil may give Anvil the Act to a bank holding company that controlled access to increased financial resources, which one bank prior to July 1, 1968, and has not could result in improvements in Anvil's competi- thereafter acquired the control of any other bank tive effectiveness and some benefits to the public, in order (1) to avoid disrupting business relationsuch benefits do not, in the Board's view, out- ships that have existed over a long period of years weigh the probable adverse financial effects con- without adversely affecting the banks or communected with this proposal. nities involved or (2) to avoid forced sales of small Based upon the foregoing and other consid- locally owned banks to purchasers not similarly erations reflected in the record, the Board has representative of community interests, or (3) to determined, in accordance with the provisions of allow retention of banks that are so small in § 4(c)(8), that the benefits to the public reasonably relation to the banking market to be served as to expected to result upon consummation of this minimize the likelihood that the bank's powers to proposal do not outweigh the possible adverse grant or deny credit may be influenced by a desire effects and that the application should be denied. to further the holding company's other interests. Accordingly, the application is hereby denied. The Board has considered the application in By order of the Board of Governors, effective light of the factors set forth in § 4(d) of the Act October 11, 1974. and finds that: Budget (total assets of $448.9 million as of Voting for this action: Vice Chairman Mitchell and Goveryear-end 1973) is a diversified financially-oriented nors Sheehan, Bucher, Holland, and Wallich. Absent and not voting: Chairman Burns. holding company engaged principally in operating (Signed) THEODORE E. ALLISON, a savings and loan association, commercial finance [SEAL] Secretary of the Board. activities, insurance underwriting, and real estate development. The record shows that, in 1963, BUDGET INDUSTRIES, INC., Budget Finance Plan, a predecessor to Budget (and LOS ANGELES, CALIFORNIA a present Budget subsidiary) acquired control of Century Bank. ORDER DENYING EXEMPTION FROM PROHIBITIONS Century Bank's total assets as of year-end 1973 AGAINST NONBANKING ACTIVITIES OF BANK were $28.7 million, equal to 6.4 per cent of HOLDING COMPANIES Budget's consolidated assets as of that date. As Budget Industries, Inc., Los Angeles, California of year-end 1971, Century Bank accounted for 7.8 ("Budget"), a bank holding company within the per cent of Budget's preadjusted net income.1 meaning of the Bank Holding Company Act (12 Century Bank's deposits ($24.6 million as of June 30, 1973) represent less than .2 per cent of the U.S.C. 1841), by virtue of its ownership of 79.6 total commercial bank deposits in the Los Angeles per cent of the voting shares of Century Bank, County banking market (the relevant market) Los Angeles, California ("Century Bank"), has wherein Century Bank ranks as the thirty-eighth applied to the Board of Governors, pursuant to largest of 66 banking organizations competing in § 4(d) of the Act, for an exemption from the prohibition of § 4 (relating to nonbanking activities 'Century Bank experienced losses in net income during 1972 of, and acquisitions by, a bank holding company). and 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 that market. Budget's savings and loan subsidiary expand its activities without the necessity of comoperates out of 12 offices located in seven counties plying with the requirements of seeking Board in Northern California, and had a total of $230 approval as other bank holding companies are million in savings accounts as of year-end 1973. generally required to do, since such expansion by By virtue of Budget's interests in both a commer- Budget could have adverse competitive effects.2 cial bank and a savings and loan association, it In addition to the above, other circumstances appears that some adverse effects on competition weigh against permitting Budget to expand its may result because California law permits state- activities free from the requirements of the Act. wide branching for both commercial banks and Although Budget Finance Plan provided capital State savings and loan associations. However, the funds to Century Bank at the time of its acquisiamount of competition that may be eliminated or tion, it does not appear from the facts of record foreclosed does not appear to be significant. that since that time Budget or its predecessors have The Bank Holding Company Act was enacted devoted the necessary resources and provided the to assure the continuation of the policy of separat- needed supervision deemed appropriate by the ing banking from other commercial enterprises. Board to be provided by a bank holding company Section 4(d) of the Act, on the other hand, is a properly concerned with the affairs of its banking departure from such a policy and is designed to subsidiary. Accordingly, rather than expanding its provide a limited number of companies which nonbanking interests, Budget's efforts should be qualify a complete exemption from the general directed toward inprovements in the operations of prohibitions against nonbanking activities con- its banking subsidiary. tained in the Act, provided such an exemption On the facts of record, including the length of "would not be substantially at variance with the time the relationship has existed, the nature of the purposes of this Act." The Board regards § 4(d) origin of the affiliation, the needs of the commuas being generally designed to permit expansion nity, and the size of Century Bank in relation to by a holding company, which is primarily oriented the holding company's total interests and in relatoward non-financial areas and whose future ex- tion to the banking market involved, the Board pansion activities are anticipated to be in such concludes that Budget has not demonstrated that areas, or which has demonstrated some unique an exemption is warranted under the provisions relationship with its banking subsidiary. In other of § 4(d) of the Act. words, Congress sought by § 4(d) of the Act to Accordingly, on the basis of the foregoing and permit a holding company, if it qualified for an other considerations reflected in the record, it is exemption under one of the criteria set forth in the Board's judgment that approval of the applicathe section, to continue to engage in its nonbank- tion of Budget for an exemption from the Act's ing business without regard to the requirements restrictions relating to nonbanking activities and of the Act or the necessity of securing the Board's acquisitions would not be in the public interest, approval for specific acquisitions. and that the application should be, and is hereby, With respect to this application, the Board is denied. of the view that an exemption should not be By order of the Board of Governors, effective granted. This view is due, in part, to the fact that October 23, 1974. Budget is a holding company the activities and Voting for this action: Governors Brimmer, Sheehan, expansion of which would continue to be of con- Bucher, and Wallich. Absent and not voting: Chairman Burns cern to the Board in light of the relationship of and Governors Mitchell and Holland. its activities to those which are subject to Board Board action taken while Governor Brimmer was a Board member. approval. As noted above, Budget is engaged in a wide range of financially related activities-some (Signed) GRIFFITH L. GARWOOD, of which have already been determined by the [SEAL] Assistant Secretary of the Board. Board to be closely related to banking under § 4(c)(8) of the Act. The Board is unconvinced that it would be consistent with the purposes of the 2Expansion by Budget of its nonbanking activities is governed by § 4(a)(2) of the Act as such activities, it appears, Act or in the public interest to permit Budget to are entitled to indefinite grandfather privileges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 795 ORDERS NOT PRINTED IN THIS ISSUE During October, 1974, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Alton Bancorporation, Alton The Alton Savings Bank, Alton, 10/1/74 39 F. R. 36389 Iowa Iowa 10/9/74 Community Financial Services, Community Bank & Trust Company, 10/23/74 39 F. R. 38729 Inc., Salt Lake City, Utah Salt Lake City, Utah 11/1/74 First Moore Bancshares, Inc. The First National Bank of Moore, 10/8/74 39 F. R. 37107 Moore, Oklahoma Moore, Oklahoma 10/17/74 The Fuji Bank, Limited, Tokyo, The Fuji Bank and Trust Company, 10/29/74 39 F. R. 39503 Japan New York, New York 11/7/74 The Industrial Bank of Japan, The Industrial Bank of Japan Trust 10/29/74 39 F. R. 39504 Limited, Tokyo, Japan Company, New York, New York 11/7/74 Southland Bancorporation, The Merchants National Bank of 10/18/74 39 F. R. 38031 Mobile, Alabama Mobile, Mobile, Alabama 10/25/74 City National Bank of Birmingham, Birmingham, Alabama Tampa State Bankshares, Inc., The Tampa State Bank, Tampa, 10/2/74 39 F. R. 36511 Tampa, Kansas Kansas 10/10/74 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 Alabama Bancorporation, Shoals National Bank of Florence, 10/16/74 39 F. R. 37827 Birmingham, Alabama Florence, Alabama 10/24/74 First International Bancshares, American Bank of Commerce, 10/10/74 39 F. R. 37543 Inc., Dallas, Texas Victoria, Texas 10/22/74 Bank of Almeda, Houston, Texas 10/25/74 39 F. R. 39503 11/7/74 International Bank of Commerce of 10/1/74 39 F. R. 36390 Laredo, Laredo, Texas 10/9/74 Nassau Bay National Bank of Clear 10/30/74 39 F. R. 39611 Lake, Nassau Bay, Texas 11/8/74 First New Mexico Bankshares Valley Bank, Farmington, New 10/2/74 39 F. R. 36509 Corporation, Albuquerque, Mexico 10/10/74 New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation First and Merchants Corporation, First and Merchants National Bank 10/17/74 39 F. R. 38030 Richmond, Virginia of Loudoun, Leesburg, Virginia; 10/25/74 First and Merchants National Bank of Fairfax, McLean, Virginia; and First and Merchants National Bank of Prince William, Dale City, Virginia First National Charter Corpora- Bank of Carthage, Carthage, 10/16/74 39 F. R. 37828 tion, Kansas City, Missouri Missouri 10/24/74 First Union Incorporated, Florissant Bank, Florissant, 10/25/74 39 F. R. 39106 St. Louis, Missouri Missouri 11/5/74 Mercantile Bancorporation Inc., Washington County Commercial 10/1/74 39 F. R. 36390 St. Louis, Missouri Bank, Potosi, Missouri 10/9/74 National Detroit Corporation, Grand Valley National Bank, 10/2/74 39 F. R. 36510 Detroit, Michigan Grandville, Michigan 10/10/74 Southeast Banking Corporation, Bank of New Smyrna, New Smyrna 10/24/74 39 F. R. 38944 Miami, Florida Beach, Florida 11/4/74 Third National Corporation, Bank of Elbridge, Elbridge, 10/11/74 39 F. R. 37545 Nashville, Tennessee Tennessee 10/22/74 Tennessee Valley Bancorp, Inc., Commerce Union Bank of Lawrence 10/7/74 39 F. R. 37108 Nashville, Tennessee County, Lawrenceburg, Tennessee 10/17/74 Commerce Union Bank of Rutherford County, Murfreesboro, Tennessee Commerce Union Bank of Sumner County, Gallatin, Tennessee Third National Corporation, Citizens Bank, Savannah, Tennessee 10/10/74 39 F. R. 37275 Nashville, Tennessee 10/18/74 Trust Company of Georgia, The First State Bank of Fitzgerald, 10/7/74 39 F. R. 37275 Atlanta, Georgia Fitzgerald, Georgia 10/18/74 United Banks of Wisconsin, Inc., Prairie State Bank, Sun Prairie, 10/1/74 39 F. R. 36395 Madison, Wisconsin Wisconsin 10/9/74 United Virginia Bankshares In- Bank of Gloucester, Gloucester, 10/3/74 39 F. R. 36511 corporated, Richmond, Virginia Virginia 10/10/74 Western Agency Inc., Goodland, Goodland State Bank and Trust 10/2/74 39 F. R. 36512 Kansas Company, Goodland, Kansas 10/10/74 ORDERS UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO MERGE BANK HOLDING COMPANIES Board action Federal (effective Register Applicant Bank(s) date) citation Central National Corporation, Northern Virginia Bankshares Incor- 10/9/74 39 F. R. 37431 Richmond, Virginia porated, Bailey's Crossroads, 10/21/74 Virginia MorAmerica Financial Corpora- Bezanson Investments, Inc., 10/1/74 39 F. R. 36391 tion, Cedar Rapids, Iowa Cedar Rapids, Iowa 10/9/74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 797 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking Company (effective Register Applicant (or activity) date) citation Alton Bancorporation, Alton, Krogman Kiernan Insurance 10/1/74 39 F. R. 36389 Iowa Agency, Alton, Iowa 10/9/74 Central National Corporation, Bankers Mortgage Corporation, 10/9/74 39 F. R. 37431 Richmond, Virginia Falls Church, Virginia 10/21/74 First Commerce Corporation, First Management Consultants, 10/2/74 39 F. R. 36508 New Orleans, Louisiana Inc., New Orleans, Louisiana 10/10/74 First Tennessee National Corpo- Additional credit-related insurance 10/24/74 39 F. R. 38942 ration, Memphis, Tennessee agency activities through Tower 11/4/74 Loan Company, Hannibal, Missouri Indian Heads Banks, Inc., Indian Head Bank Services Corpora- 10/25/74 39 F. R. 39107 Washua, New Hampshire tion, Washua, New Hampshire 11/5/74 Levy Bancorp, Oxnard, Thielscher Mortgage and Investment 10/23/74 39 F. R. 38730 California Corporation, Oxnard, California 11/1/74 National City Corporation, National City Life Insurance 10/29/74 39 F. R. 39505 Cleveland, Ohio Company, Phoenix, Arizona 11/7/74 Pittsburgh National Corporation, The Kissell Company, Springfield, 10/23/74 39 F. R. 38730 Pittsburgh, Pennsylvania Ohio 11/1/74 Tampa State Bankshares, Inc., Edward J. Costello Insurance 10/2/74 39 F. R. 36511 Tampa, Kansas Agency, Tampa, Kansas 10/10/74 Union Planters Corporation, Planters Life Insurance Company, 10/8/74 39 F. R. 37107 Memphis, Tennessee Phoenix, Arizona 10/17/74 ORDER UNDER BANK MERGER ACT- APPLICATION TO MERGE, CONSOLIDATE OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank(s) date) citation Commerce Union Bank of Commerce Union Bank, Nashville, 10/7/74 39 F. R. 37108 Lawrence County, Lawrence- Tennessee 10/17/74 burg, Tennessee Commerce Union Bank of Sumner County, Gallatin, Tennessee ORDERS ISSUED BY FEDERAL RESERVE BANKS During October 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR ACQUISITION OF BANK Board action Federal Reserve (effective Register Applicant Bank(s) Bank date) citation First National Financial The Gogebic National Bank Chicago 10/7/74 39 F. R. 37432 Corporation, Kalamazoo, of Iron wood, Iron wood, 10/21/74 Michigan Michigan First National Charter The First National Bank of Kansas City 10/22/74 39 F. R. 39107 Corporation, Kansas Gassville, Gassville, 11/5/74 City, Missouri Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

799 Announcements APPOINTMENT OF MR. COLDWELL AS A MEMBER Normally, the Federal Reserve provides a sub- OF THE BOARD OF GOVERNORS stantial amount of reserves to accommodate the seasonal expansion in the demand for money and President Ford on September 26, 1974, announced credit that occurs over this period, particularly his intention to appoint Philip E. Coldwell as a during the Christmas shopping season. This remembeftof the Board of Governors of the Federal structuring provides part of the needed reserves Reserve System. Mr. Coldwell's appointment was directly to member banks rather than through open subsequently confirmed by the Senate on October market operations. 9 and his oath of office was administered on Actions taken by the Board will: October 29. The text of the White House announcement 1. Reduce from 5 per cent to 3 per cent the follows: reserve requirement on all time deposits with an initial maturity of 4 months or longer.1 The President has announced his intention to nomi- 2. Increase from 5 per cent to 6 per cent the nate Philip Edward Coldwell, of Dallas, Texas, to reserve requirement on all time deposits with an be a member of the Board of Governors of the Federal initial maturity of less than 4 months.1 (The first Reserve System for the unexpired term of 14 years $5 million of such deposits at each member bank from February 1, 1966. He will succeed Andrew F. Brimmer who resigned effective August 31, 1974. will be subject to a 3 per cent reserve requirement.) 3. Reduce from 18 per cent to MVi per cent Since 1968, Mr. Coldwell has been President of the the reserve requirement on net demand deposits Federal Reserve Bank of Dallas after joining that over $400 million. Bank as an economist in 1952. He served as an 4. Remove the remaining marginal reserve reeconomist until 1962 when he became First Vice President. quirement of 3 per cent on large certificates of deposit (CD's) issued to mature in less than 4 He was born on July 20, 1922, in Champaign, Illi- months. nois, and received his B.A*. degree from the Univer- All changes apply to deposits outstanding in the sity of Illinois in 1946. He received his M.S. in 1947 and his Ph.D. from the University of Wisconsin in week beginning November 28 and will release 1952. He served in the United States Navy from 1942 reserves in the week beginning December 12. to 1946 as a pilot. Reserve requirements on time deposits. Reserve requirements on time deposits are restructured to He is married to the former Norma Elaine Abels and provide for a higher reserve requirement on they have two children. They reside in Dallas, Texas. shorter-term time deposits and a lower reserve requirement on longer-term time deposits. The RESTRUCTURING OF RESERVE REQUIREMENTS accompanying table depicts the new reserve struc- The Board of Governors on November 13, 1974, ture. approved a restructuring of reserve requirements This change introduces a maturity breakdown that will help meet the seasonal need for bank for reserve requirements on "other time deposits" reserves over the coming weeks. regardless of denomination. Under the system for- The Board's action is also designed to improve merly in effect, member banks were required to the liquidity of the banking system by encouraging member banks to seek longer-term time deposits. This is done by lowering reserve requirements on xOn Nov. 18 the Board modified this action by longer-term time deposits and increasing reserve changing the initial maturity of 4 months to an initial requirements on shorter-term time deposits. maturity of 6 months. Data presented to the Board at The net effect of the over-all restructuring— the time of its original decision on Nov. 13 underestiwhich includes some reduction in reserve require- mated the net amount of reserves released by the restructuring. Revised estimates indicated that the net ments on demand deposits over $400 million—is release of reserves—about $750 million—would not be to release about $750 million in reserves to the altered significantly with the modification approved on banking system. Nov. 18. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Type of Reserve the 3 per cent marginal reserve requirement on time and savings percentage large CD's with an initial maturity of 4 months deposit applicable or longer. The new action removes the remaining Savings deposits 3 Other time deposits:2 marginal reserve requirement. 30-179 days— The marginal reserve requirement applies to $5 million and under 3 Over $5 million 6 increases (beyond the amount outstanding in the 180 days and over 3 week ended May 16, 1973) in the total of (a) time deposits in denominations of $100,000 and over maintain a 3 per cent reserve requirement on and (b) bank-related commercial paper and finance "other time deposits" up to $5 million and a 5 bills with a maturity of 30 days or longer. In no per cent reserve requirement on "other time decase did the supplemental reserve apply to banks posits" of more than $5 million. whose deposits of this type totaled less than $10 Reserve requirements on demand deposits. Remillion. serve requirements are reduced from 18 per cent * * * to 17 ]/2 per cent on net demand deposits over $400 Reserve requirements on borrowings of Euromillion. This offsets the increase in required redollars by American banks remain at 8 per cent. serves that large banks will experience as a result Agencies and branches of foreign banks that are of changes in the structure of reserve requirements maintaining this reserve requirement voluntarily on time deposits. are not affected by this Board action. The reduction also narrows somewhat the gap in reserve requirements for large banks as shown in the accompanying table. NEW LEGISLATION Size of bank Reserve percentage President Ford signed into law on October 28, (net demand deposits applicable 1974, legislation designed to further protect conin millions of dollars) Old New sumers in credit transactions. The legislation Under 2 8 8 2- 10 10'/2 10'/2 (H.R. 11221) also creates a National Commission 4 1 0 0 1 0 0 0 - - a 4 1 n 0 0 d 0 0 over 1 1 18 2 3 ' '/ / 22 1 1 1 2 3 7 ' ' ' / / / 2 2 2 r o a n n g E e l ec o t f r on o i t c h e F r un p d ro T vi r s a i n o s n f s e rs a f a f n e d ct i c n o g n t t a h i e n s F a e d w e i r d a e l Reserve and financial institutions. Marginal reserve requirement. Removal of the re- The new law (Public Law 93-495) includes maining marginal reserve requirement of 3 per cent amendments to the Truth in Lending Act, proceaffects large certificates of deposit ($100,000 and dures to protect the consumer in credit billing, and over) maturing in less than 4 months. The Board a prohibition against discrimination in granting in September removed the marginal reserve recredit because of sex or marital status. The proviquirement on large CD's with an initial maturity sions on credit billing and credit discrimination of 4 months or longer. are effective within one year following enactment. This action was taken in recognition of the fact Most of the Truth in Lending amendments are that the volume of large CD's has declined in effective immediately. The Federal Reserve must recent weeks and in view of the outdated base write regulations on these three sections and staff period used by banks to compute their marginal work will be handled by the Office of Saver and reserves. Consumer Affairs. The elimination of the marginal reserve re- Fair Credit Billing Act. Essentially, the Fair Credit quirement on large CD's means that nonmember Billing Act seeks to respond to a growing number banks that maintained this reserve requirement of complaints that consumers are unable to resolve voluntarily are no longer asked to do so. difficulties encountered when computers are in- A marginal reserve requirement (the regular 5 volved in billing errors. per cent plus a supplemental 3 per cent) was first When it becomes effective next year, the Act announced by the Board on May 16, 1973. An will require creditors to acknowledge a customer's additional 3 per cent marginal reserve was ancredit inquiry within 30 days. The creditor also nounced on September 7, 1973, but this was will be required to resolve any dispute within 90 removed by the Board last December. On Sepdays by either correcting the customer's bill or tember 4, 1974, the Board announced removal of explaining why the original bill is correct. The Act also will prohibit creditors from im- 2As modified by Board action on Nov. 18 changing posing a finance charge on any amount that is in the initial maturity from 4 months to 6 months. dispute until it is resolved, and from reporting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 801 adversely to credit bureaus while the customer's Among the 26 members of the Commission will inquiry is being investigated. be the following (or their delegates): the Chairman Another provision of this Act will require cred- of the Board of Governors of the Federal Reserve itors to mail bills at least 14 days before the date System, the Secretary of the Treasury, the Compwhen payment must be made to avoid a finance troller of the Currency, the Attorney General, the charge. Postmaster General, the Comptroller General of Equal Credit Opportunity Act. This Act makes it the United States, the Director of the Office of unlawful for any creditor to discriminate against Technology Assessment, the chairmen of the Fedany applicant for credit on the basis of sex or eral Deposit Insurance Corporation, the Federal marital status. The legislation is designed to make Home Loan Bank Board, the Federal Communicredit equally available to all creditworthy cus- cations Commission, and the Federal Trade Comtomers regardless of their sex or marital status. mission, and the Administrator of the National The Act does not impose criminal liability for Credit Union Administration. Fourteen other violations. It does provide, however, for civil members will be appointed by the President. penalties equal to actual damages plus punitive The Commission must file a final report with damages up to $10,000 in an individual action. Congress and the President within two years. In the case of a class action, punitive damages Among factors it must take into account are: are limited to $100,000 or 1 per cent of the 1. The need to preserve competition among the creditor's net worth, whichever is smaller. financial institutions and other business enterprises Truth in Lending Act Amendments. The legislation using such a system. includes a variety of amendments to the Truth in 2. The need to promote competition among Lending Act that originally went into effect on July financial institutions and to assure that Government 1, 1969. The more significant provisions are: regulation and involvement or participation in a 1. An exemption from liability for any creditor's system competitive with the private sector be kept action done or omitted in good faith conformity to a minimum. within any rule, regulation, or interpretation issued 3. The need to prevent unfair or discriminatory by the Federal Reserve Board regardless of the practices by any financial institution or business fact that such regulation is subsequently amended, enterprise using or desiring to use such a system. rescinded, or determined to be invalid by the 4. The need to afford maximum user and concourts. sumer conveniences. 2. A provision setting a maximum limit on class 5. The need to afford maximum user and conaction liability at $100,000 or 1 per cent of the sumer rights to privacy and confidentiality. creditor's net worth, whichever is less. 6. The impact of such a system on economic 3. An exemption from Truth in Lending disclo- and monetary policy. sures for agricultural credit that exceeds $25,000. 7. The implications of such a system on the This exemption is the same as that included in availability of credit. the original Act for all other types of consumer 8. The implications of such a system expanding credit, except mortgage credit. internationally and into other forms of electronic 4. Any advertisement promoting a sale, without communications. an identifiable finance charge, but repayable in 9. The need to protect the legal rights of users more than four installments must include the fol- and consumers. lowing statement: "The cost of credit is included Other provisions. Among other major provisions in the price quoted for the goods and services." in the over-all Act are the following: 5. The fraudulent use of a credit card to obtain money, goods, or services having a value aggre- —An increase in deposit insurance from $20,gating $1,000 is made a Federal crime. This pro- 000 to $40,000 for all Federally insured financial vision will be enforced by the Justice Department. institutions (commercial banks, mutual savings Other provisions of the new amendments are banks, savings and loan associations, and credit technical in nature. unions). Electronic Fund Transfers. The Act establishes a —Deposit insurance for public time and savings National Commission on Electronic Fund deposits up to $100,000. Transfers to study and recommend actions neces- —Extension of the flexible features of Regulasary for the possible development of public or tion Q (payment of interest on deposits) to Deprivate electronic fund transfer systems. cember 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 —An increase from $60 million to $140 million CHANGES IN BOARD STAFF in the amount of funds that the Federal Reserve The Board of Governors has announced the folmay spend on branch bank buildings. lowing staff appointments, effective October 27, —Extension to November 1, 1975, of the au- 1974. thority of the Treasury Department to borrow up Allen L. Raiken has been promoted to Adviser to $5 billion directly from the Federal Reserve. in the Legal Division. Mr. Raiken, who has been —Extension of the Federal Reserve's authority with the Board since February 1971, received a to issue cease and desist orders against unsafe or B.A. from St. Lawrence University, J.D. from St. unsound practices to bank holding companies and John's University, and LL.M. from George their nonbank subsidiaries. Washington University. Charles J. Siegman and Edwin M. Truman have SUSPENSION OF SAME-DAY CREDIT been named Assistant Advisers in the Division of RESTRICTION FOR STOCKS International Finance. The Board of Governors on November 4, 1974, Mr. Siegman did his undergraduate work at the suspended for 6 months the restrictions that apply City College of New York and his graduate studies to use of the same-day substitution privilege in at Columbia University. Immediately prior to stock margin accounts. The suspension will permit joining the Board's staff in July 1967, he taught use of the same-day substitution privilege in all at Swarthmore College. margin accounts. Mr. Truman graduated from Amherst College and received M.A. and Ph.D. degrees from Yale The purpose of the suspension is to enable the University. He was a member of the Yale faculty Board to study the impact of the rule on margin from 1967 until he joined the Board's staff in July customers, brokerage firms, and the stock market 1972. itself. Under the same-day substitution privilege, customers are permitted to substitute one security for ADMISSION OF STATE BANKS another in their accounts through offsetting pur- TO MEMBERSHIP IN chases and sales made on the same day, without THE FEDERAL RESERVE SYSTEM using any of the proceeds of the sale to strengthen The following banks were admitted to membership an account that is below the initial margin requirement. A regulatory amendment that went into in the Federal Reserve System during the period effect on September 18, 1972, limited use of this October 16, 1974, through November 15, 1974: privilege to margin accounts with an equity ratio Minnesota of 40 per cent or more of the market value of Oak Park Heights Oak Park Heights the stock collateral in the account. State Bank The suspension applies to extensions of credit by brokers and dealers (Regulation T) and to loans New York by banks and other lenders (Regulations U and New York European-American G, respectively) for Jjie purpose of purchasing or Bank & Trust Company carrying stocks registered on a national exchange South Carolina or named in the Board's over-the-counter margin Florence Guaranty Bank list. and Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

803 Industrial Production Released for publication November 15 Industrial production declined by an estimated 0.6 INDUSTRIAL PRODUCTION per cent in October following a 0.3 per cent increase a month earlier. At 124.9 per cent of the 1967 base, industrial output in October was 1.7 per cent below a year earlier. Reductions in output were general with both durable and nondurable goods manufacturing down. Business equipment, however, increased slightly. Auto assemblies increased 9 per cent during October to an annual rate of 8.3 million units. A decline in assemblies is indicated for November, as weakening sales of new domestic cars have prompted layoffs and plant closings in efforts to reduce the record level of inventories. Output of durable consumer household goods declined sharply in October but nondurable consumer goods edged up. Construction products were cut back substantially further. Production of durable goods materials was unchanged, as an increase in steel output in anticipation of the coal strike offset reductions in other materials. Output of nondurable materials declined sharply, largely because of continuing reductions in the textile, paper, and chemical grouping. Total materials output was reduced 0.8 per cent. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1974 1974 MMoonntthh YYeeaarr aaggoo aaggoo Aug.' Sept.p Oct.'' Ql Q2 Q3 Total 125.2 125.6 124.9 -.6 -1.7 -6.6 1.9 -.3 Products, total 123.3 123.3 123.0 -.2 -1.0 -5.8 2.6 0 Final products 122.0 122.3 122.5 .2 -.2 -6.5 3.0 1.6 Consumer goods 129.5 128.5 128.3 -.2 -3.2 -11.5 2.5 -.6 Durable goods 131.2 128.6 127.1 -1.2 -7.4 -26.6 14.7 -5.7 Nondurable goods 128.9 128.5 128.7 .2 -1.6 -5.2 -2.2 1.6 Business equipment 128.8 131.7 132.0 .2 5.1 .6 7.2 3.4 Intermediate products 127.8 127.1 125.0 -1.7 -4.3 -4.6 1.2 -5.0 Construction products 127.0 128.4 124.8 -2.8 -7.1 -5.1 -2.7 -7.7 Materials 128.4 129.2 128.2 -.8 -2.2 -6.4 -.3 -1.2 '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

A 64 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 U.S. STATISTICS—Continued A 50 Industrial production A 52 Business activity A 52 Construction A 54 Labor force, employment, and unemployment A 55 Consumer prices A 55 Wholesale prices A 56 National product and income A 58 Flow of funds INTERNATIONAL STATISTICS: A 60 U.S. balance of payments A 61 Foreign trade A 61 U.S. reserve assets A 62 U.S. gold transactions A 63 International capital transactions of the United States A 76 Open market rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governments 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 c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds U Uses of funds III, IV Quarters * 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 Sales, revenue, profits, and divi- Banks and branches, number, dends of large manufacturing Apr. 1974 A-88—A-89 corporations Sept. 1974 A-79 Flow of funds: Semiannually Assets and liabilities: Banking offices: Oct. 1974 A-59.14—A-59.28 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 Bar Feb. 1974 A-96—A-97 Banking offices and deposits of Insured commercial June 1974 A-84—A-85 group banks, Dec. 31, 1973 June 1974 A-80—A-83 Member banks: July 1974 530 June 1974 A-84—A-93 June 1974 A-94—A-99 Sept, 1974 A-80—A-85 Banking and monetary statistics: 1973 Mar. 1974 A-96—A-109 July 1974 A-80—A-82 Jan. 1974 A-96—A-97 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue 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 • NOVEMBER 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securities i Special ury u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 s G to o c ld k c D e R r r t a i i g w fi h c i t n a s g t 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 83 2,612 17,518 2,956 1941—Dec.. 2,219 2,219 170 2,404 22,759 3,239 1945—Dec.. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec.. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec.. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—Dec.. 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—Dec.. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec.. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Oct.. 78,042 77,500 542 1,465 '2,936 1,122 83,644 10,933 400 8,613 Nov.. 78,457 77,937 520 1,399 '2,764 1.078 83,756 11,567 400 8,642 Dec.. 79,701 78,833 868 1,298 3,414 1.079 85,642 11,567 400 8,668 1974—Jan.... 80,793 80,608 185 1,044 3,385 1,258 86,568 11,567 400 8.705 Feb.. . 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar... 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 Apr... 81,567 80,873 694 1,714 2,295 1,160 86,907 11,567 400 8,807 May.. 83,434 82,037 1,397 2,580 2,025 1,093 89,405 11,567 400 8,838 June.. 82,812 81,859 953 3,000 2,114 1,106 89,254 11,567 400 8,877 July... 84,313 83,496 817 3,308 2,267 1,343 91,554 11,567 400 8,905 Aug... 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 Sept... 84,384 84,049 335 3,287 2,239 1,349 91,617 11,567 400 8,992 Oct.*. 83,735 83,303 432 1,794 2,180 2,984 91,069 11,567 400 9,041 Week ending— 1974—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 1,524 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,o46 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 1,237 92,539 11,567 400 8,973 11. 83,126 83,126 3,084 2,717 1,290 90,486 11,567 400 8,971 18. 83,791 83,222 569 2,921 2,535 1,323 90,876 11,567 400 8,974 25. 84,982 84,616 366 3,531 2.171 1,413 92,486 11,567 400 9,016 Oct. 2.. . 85,380 84,904 476 3,218 1,898 1,646 92,695 11,567 400 9,039 9*.. 84,041 83,480 561 2,245 2.172 2,047 91,041 11,567 400 9,027 16*.. 83,367 82,598 769 1,744 1,898 3,288 90,739 11,567 400 9,036 23*.. 83,472 83,472 1,322 2,554 3,396 90,959 11,567 400 9,042 30*.. 85,581 83,218 363 1,638 1,972 3,386 90,844 11,567 400 9,054 End of month 1974—Aug... 84,951 84,951 4,320 1,522 1,268 92,338 11,567 400 9,017 Sept... 84,046 85,046 2,920 1,460 1,481 91,411 11,567 400 9,069 Oct.*. 83,362 83,362 1,120 2,330 3,442 90,472 11,567 400 9,069 Wednesday 1974—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. 86,841 9 85,136 1,705 3,207 1,943 1,238 93,764 11,567 400 8,969 82,760 9 82,760 2,455 3,064 1,406 89,948 11,567 400 8,974 82,185 9 82,185 3,123 3,093 1,334 90,010 11,567 400 8,974 84,887 9 84,181 706 5,192 3,721 1,403 95,693 11,567 400 9,032 Oct. 2.. 85,523 9 84,901 622 2,829 2,740 1,544 93,224 11,567 400 9,038 9*. 79,589 9 79,589 800 2,427 3,346 86,477 11,567 400 9,033 16*. 85,748 9 82,565 3,183 1,762 2,882 3,349 94,595 11,567 400 9,041 23*. 83,694 9 83,694 2,481 2,473 3,391 92,255 11,567 400 9,046 30*. 83,594 9 82,790 " 804' 1,851 2,244 3,429 91,444 11,567 400 9,069 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. 4 Includes industrial loans and acceptances until Aug. 21, 1959, when Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank Treas- with r e F s . e R r . v e B s, a nks Other O F t . h R e . r reserves Period or date h c i u n o a r l g s d y h s - T u re r a y s - F ei o g r n - Other 2,5 co F u a . c n R - t . s 3 c b a i a p l l i n i i a t t d i - a e l s 3 B W F a . n R it k h . s c r C a e o n n u in c d r y - 6 Total 7 Averages of daily figures 2,402 616 739 248 11,473 11,473 1939—Dec. 2,189 592 1,531 292 12,812 12,812 1941—Dec. 2,269 625 1,247 493 16,027 16,027 1945—Dec. 1,290 615 920 353 739 17,391 17,391 1950—Dec. 408 522 250 495 1,029 16,688 2,595 19,283 1960—Dec. 756 360 225 458 -1,105 22,484 4,737 27,221 1968—Dec. 656 1,194 146 458 2,192 23,071 4,960 28,031 1969—Dec. 427 849 145 735 2,265 23,925 5,340 29,265 1970—Dec. 453 1.926 290 728 2,287 25,653 5,676 31,329 1971—Dec. 350 1,449 272 631 2,362 24,830 6,095 31,353 1972—Dec. 622 1,718 266 5 752 2,866 28,458 6,371 34,913 1973—Oct. 340 1,772 522 5 689 2,854 28,259 r6,382 34,725 Nov. 323 1,892 406 5 717 2,942 28,352 6,635 35,068 Dec. 349 2,488 427 5 713 2,904 29,396 7,192 36,655 1974—Jan. 342 2,972 293 5 682 2,932 28,574 6,601 35,242 Feb. 334 1,803 311 5 699 2,998 28,450 6,450 34,966 Mar. 308 1,712 328 5 702 2,985 29,469 6,402 35,929 Apr. 286 3,000 320 5 699 3,168 29,861 6,600 36,519 May 293 2,015 491 5 691 3,187 29,672 6,668 36,390 June 275 2,795 296 5 773 3,216 30,514 6,824 37,338 July 283 2,633 326 5 831 3,240 30,264 6,765 37,029 Aug. 303 2,451 456 5 766 3,345 30,156 6,920 37,076 Sept. 315 1,601 294 5 869 3,260 30,083 6,852 36,935 Oct. P Week ending— 282 2,730 274 5 799 3,053 29,900 7,020 36,920 1974—Aug. 7 274 1,875 269 5 875 3,107 29,890 7,046 36,936 14 279 2,447 428 5 833 3,262 30,799 6,357 37,156 21 281 3,191 307 5 779 3,390 30,452 6,614 37,066 28 302 3,107 371 5 802 3,502 30,416 6,823 37,239 Sept. 4 297 1,858 362 5 732 3,126 29,649 7,088 36,737 298 1,438 525 5 751 3,255 30,249 6,837 37,086 ! '.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'AS 304 3,148 612 5 904 3,450 30,161 6,785 36,946 25 315 3,274 356 5 960 3,493 30,464 7,069 37,533 Oct. 2 314 2,698 288 5 824 3,107 29,476 7,159 36,635 9 p 318 838 271 5 794 3,180 30,399 7,046 37,445 16 p 318 1,200 271 5 843 3,285 30,203 6,271 36,474 23 p 313 1,341 312 5 800 3,410 30,064 6,830 36,894 30*> End of Month 287 3,303 372 654 3,532 30.247 6,823 37,070 304 3,209 411 718 3,685 29,266 7,069 36,335 1974—SAeupgt.. 297 787 376 815 3,504 29,888 7,125 37,013 Oct.f Wednesday 289 1,891 261 5 675 3,030 29,338 7,020 36,358 290 1,969 248 5 929 3,141 30,036 7,046 37,082 1974—Aug. 7 294 2,456 303 5 738 3,290 31,780 6,357 38,137 14 306 2,950 324 5 723 3,429 26,840 6,614 33,454 21 28 302 2,785 359 5 777 3,135 31,926 6,823 38,749 Sept. 4 302 1,287 305 5 739 3,181 29,420 7,088 36,508 11 311 2,503 327 5 758 3,259 28,538 6,837 35,375 18 318 3,347 611 5 711 3,477 33,256 6,785 40,041 25 324 3,255 313 5 822 3,093 31,229 7,069 38,298 Oct. 2 328 1,179 296 5 798 3,097 25,891 7,142 33,033 925 314 629 328 5 789 3,299 34,026 7,046 41,072 16P 326 1,393 282 5 916 3,346 31,137 6,271 37,408 23 *> 299 1,079 404 5 844 3,481 30,452 6,830 37,282 30p 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 1974 Ql, $67 million Q2, $58 million, transition period ended after second thereafter. Beginning with Jan. 1963, figures are estimated except for quarter, 1974. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 8 Includes securities loaned—fully secured by U.S. Govt, securities of-business figures for reserve period 2 weeks previous to report date. pledged with F.R. Banks. 7 Beginning with week ending Nov. 15, 1972, includes $450 million of 9 Includes securities loaned—fully secured by U.S. Govt, securities reserve deficiencies on which F.R. Banks are allowed to waive penalties pledged with F.R. Banks. Also reflects securities sold, and scheduled to for a transition period in connection with bank adaptation to Regulation J be bought back, under matched sale/purchase transactions. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Ql, $279 For other notes see opposite page. million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS • NOVEMBER 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- Excess Borrowheld1 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 1 011 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 I 1973—Oc t 34,913 34,690 223 1,465 126 11 74 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 Apr 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 37,076 36,885 191 3,287 139 133 1,662 20 17 -77 792 115 816 Oct.* 36,935 36,757 178 1,794 118 -8 502 -33 36 -163 570 113 686 Week ending— 1973—Oct. 3r. 34,672 34,220 452 1,519 144 88 43 7 41 130 463 143 972 10'. 34,795 34,395 400 1,351 131 128 43 1 9 10 535 177 764 m. 35,015 35,106 -91 1,169 120 -158 26 -9 58 -81 520 73 565 24 r. 35,111 34,741 370 1,912 125 131 185 7 66 40 901 108 760 31 r. 34,948 34,817 131 1,455 119 -69 72 30 81 1 473 85 829 1974—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 Sept. 4. 37,239 36,918 321 3,906 152 -66 1,729 40 19 171 1,125 176 1,033 11. 36,737 36,628 109 3,084 132 127 1,567 -35 20 -no 766 127 731 18. 37,086 37,004 82 2,921 134 -150 1,517 15 16 90 740 127 648 25. 36,946 36,872 74 3,531 141 80 1,782 12 10 -93 871 75 868 Oct. 2. 37,533 37,077 456 3,218 143 67 1,756 9 17 222 532 158 913 9 P 36,635 36,666 -31 2,245 134 -80 1,245 -85 10 -329 340 80 650 16* 37,445 37,096 349 1,744 122 6 219 35 136 -29 783 117 606 23* 36,474 36,604 -130 1,322 107 -161 148 -22 2 -246 508 71 664 30* 36,894 36,579 315 1,638 104 119 96 -39 11 -138 730 121 801 1 Beginning with week ending Nov. 15, 1972, includes $450 million of for July 1972, p. 626. Categories shown here as "Large" and "All other" reserve deficiencies on which F.R. Banks are allowed to waive penalties parallel the previous "Reserve city" and "Country" categories, respectively for a transition period in connection with bank adaptation to Regulation J (hence the series are continuous over time). as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week of quarter): Ql, $279 NOTE.—Monthly and weekly data are averages of daily figures within million; Q2, $172 million; Q3, $112 million; Q4 million. Beginning 1974 the month or week, respectively. Beginning with Jan. 1964 reserves are Ql, $67 million, Q2, $58 million, transition period ended after second estimated except for weekly averages. quarter, 1974. Borrowings at F.R. Banks: Based on closing figures. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks Effective Apr. 19, 1963, the Board's Regulation A, which governs 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

NOVEMBER 1974 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r v c e e e - s s s 1 r a B o t B w a o F n i r n . k - R g s s . F f i b e n u N d a t n e n e e d t r r k s - a l S d u e r o f p i r c lu it s r P e e q a r u o v c f i g r e . e n d t c P ha u s r e - s Sales t a w c t T r o t o a i - o t n w a n s l a - s y 2 b c o P u h f y a u n i s r n e e - t s g s b o S e f a l a l n n l i e n k e s g s t d L ea o t l a o e n r s s 3 de f r B i a r n o o o l w g e r m s r - - s4 lo N a e n t s trans. reserves banks Total—46 banks 1974—Sept. 4 179 735 11,176 -11,731 68. 17,730 6,555 5,049 12,682 1,506 2,642 ,078 1,564 11 -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 Oct. 2 271 184 -9,977 -9,890 57.4 17,661 7,684 5,868 11,792 1,815 3,262 891 2,371 9 -44 83 13,610 -13,737 80.3 19,866 6,256 4,855 15,012 1,401 4,039 901 3,138 16 137 765 14,686 -15,315 86.9 20,532 5,846 5,034 15,498 812 4,790 890 3,900 23 -77 240 12,480 -12,797 74.8 18,806 6,326 4,832 13,974 1,493 3,678 795 2,883 30 38 345 11,847 -12,155 71.7 18,037 6,189 4,791 13,246 1,399 3,606 823 2,783 8 in New York City 1974—Sept. 4 -5 206 3,705 -3,915 55,6 5,158 1.454 1,294 3,864 160 1,403 774 629 11 123 32 5,237 -5,416 74.4 6,143 906 906 5,237 2,556 762 1,795 18 -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 Oct. 2 76 3,920 -3,844 54.5 5,305 1,385 1,355 3,949 29 1,524 601 923 9 21 5,359 -5,388 75.9 6,250 891 891 5,359 1,854 543 1,311 16 63 219 5,139 -5,295 72.8 6,343 1,204 1,204 5,139 2,015 543 1,472 23 -60 148 3,893 -4,101 58.1 5,087 1,195 1,195 3,893 2,030 545 1,486 30 48 53 3,767 -3,772 54.5 5,003 1,236 1,041 3,962 195 1,983 567 1,417 38 outside New York City 1974—Sept. 4 184 529 7,471 -7,816 76,8 12,572 5,101 3,755 8,817 1,34 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 Oct. 2 195 184 6,057 -6,046 59.3 12,356 6,299 4,513 7,843 1,786 1,738 290 1,449 9 -65 83 8,251 -8,399 83.4 13,616 5,365 3,963 9,653 1,401 2,185 358 1,827 16 74 547 9,548 -10,020 96. 14,189 4,641 3,829 10,360 812 2,775 347 2,428 23 -17 92 8,587 -8,696 86.5 13,719 5,131 3,638 10,081 1,493 1,648 250 1,398 30 292 8,080 -8,383 83.5 13,033 4,953 3,750 9,284 1,204 1,623 257 1,366 5 in City of Chicago 1974—Sept. 4 60 3,324 -3,263 168.4 4,226 903 903 3,324 330 330 11 -9 3,852 -3,861 198.6 4,509 656 656 3,853 493 493 18 2 3,554 -3,553 185.3 4,401 847 847 3,554 364 364 25 16 2,607 -2,591 134.9 3,410 803 803 2,607 340 340 Oct. 2 49 1,986 -1,937 99.4 3,163 1,177 1,177 1,986 360 360 9 -4 -3,002 -3,005 153 3,837 835 835 3,002 451 451 16 38 3,656 -3,736 180.6 4,299 643 643 3,656 508 508 23 13 3,227 -3,215 163.9 3,859 632 632 3,227 457 457 30 -22 3,493 -3,515 184.7 4,209 716 716 3,493 458 458 33 others 1974—Sept. 4 123 529 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 5,937 596 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 Oct. 2 146 184 4,071 -4,109 49.9 9,193 5,122 3,336 5,857 1,786 1,378 290 9 -61 83 5,249 -5,393 66.4 9,779 4,530 3,128 6,651 1,401 1,734 358 1,376 16 36 429 5,892 -6,284 75.9 9,890 3,998 3,186 6,704 812 2,267 347 1,921 23 -30 92 5,360 -5,482 67.8 9,860 4,499 3,006 6,854 1,493 1,191 250 940 30 11 292 4,587 -4,868 59.8 8,824 4,238 3,034 5,790 1,204 1,165 257 908 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry- 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank's weekly average pur- by Govt, or other issues. chases and sales are offsetting. NOTE.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 BULLETIN, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 F.R. BANK INTEREST RATES • NOVEMBER 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sees. 13 and 13a1 Under Sec. 10(b) 2 Loans to all others under last par. Sec. 13 4 Federal Reserve Regular rate Special rate 3 Bank Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 10/31/74 date rate 10/31/74 date rate 10/31/74 date 3 rate 10/31/74 date rate Boston 4/30/74 7ft 8ft 4/30/74 10 10/11/74 10 4/30/74 9% New York 4/25/74 m 8 ft 4/25/74 10 9/27/74 10 4/25/74 9% P C h le i v la e d la e n l d p hia., 4 4 / / 2 2 5 5 / / 7 7 4 4 m m 8 m ft 4 4 / / 2 2 5 5 / / 7 7 4 4 1 1 0 0 1 1 0 0 / / 3 4 / / 7 7 4 4 1 1 0 0 4 4 / / 2 2 5 5 / / 7 7 4 4 9 9 % 1/2 R At ic la h n m ta o nd 4 4 / / 2 2 9 5/ / 7 7 4 4 m m s s y v 2 i 4 4 / / 2 2 9 5 / / 7 7 4 4 1 1 0 0 1 1 0 0 / / 1 3 4 / / 7 7 4 4 1 1 0 0 4 4 / / 2 2 9 5 / /7 7 4 4 9 9 f f t t Chicago 4/26/74 m 8ft 4/26/74 10 10/11/74 10 4/26/74 9ft St. Louis 4/26/74 m 8ft 4/26/74 10 10/3/74 10 4/26/74 9ft Minneapolis., 4/26/74 m 8ft 4/26/74 10 10/4/74 10 4/26/74 9ft Kansas City.. 4/25/74 m 8% 4/25/74 10 10/4/74 10 4/25/74 9ft Dallas 4/25/74 m 8% 4/25/74 10 9/27/74 10 4/25/74 9ft San Francisco 4/25/74 7ft 8% 4/25/74 10 10/4/74 10 4/25/74 9ft 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954, 1ft 1ft 1959—Mar. 6. 2ft-3 3 1970—Dec. 1 5ft-534 534 16. 3 3 4 51/2-534 5ft 1955—Apr. 14 1 ft-1 VA 1ft May 29. 3 -3ft 3ft 11 5ft 5ft 1956— S M A A N A e u p u o a p r g v g y t . . . . . 2 1 2 2 1 1 1 1 3 2 4 4 8 3 9 0 5 5 2 3 3 1 2 2 2 2 2 2 1 1 l3 3 3 * ^ i f 4 - 4 2 2 1 t 4 4 4 3 - - 2 % ~ % - 2 2 - - f - - 3 t 3 3 1 V 2 i 1 2 % / f / 4 a 4 V t A 2 2 2 2 2 2 2 2 3 3 1 1 1 3 3 3 1 3 3 1 f f / / / / / t 4 t 4 4 4 4 4 4 1 1 1 1 9 9 9 9 6 6 6 6 3 0 4 5 — — — — J S J J S A N D u u u e e u o e l p p n n y c g v e t e t . . . . . 2 2 1 1 1 1 1 3 1 1 6 9 4 6 2 4 0 7 8 0 1 3 2 . . . . . . . . . . . . . 4 3 3 3 3 3 3 f f f 4 3 3 4 3 3 t t t f - - - - - f t - f f 4 4 4 t t t - 3 3 4 4 f f f t t t 4 4 4 3 3 3 3 4 4 4 3 3 3 f f f f f f t t t t t t 1971—J J F D N a u e e o n l b y c v . . . . 2 2 2 1 1 1 1 1 2 1 1 1 1 9 9 6 2 3 5 9 8 3 1 3 4 9 7 4 4 4 4 5 5 5 1 3 3 f i / 4 t 4 4 4 5 4 4 5 5 4 2 - 3 1 3 3 - f - - - - 4 4 t 4 5 4 5 5 4 4 5 3 3 1 1 - - f / 4 5 5 t 4 4 4 5 5 4 4 4 5 5 4 4 5 5 5 5 5 1 1 1 3 3 3 f f / / / t t 4 4 4 4 4 4 1957—Aug. 9 3 -3ft 3 13. 4ft 4ft 1973—Jan. 15 5 5 1958—J N D a e o n c v . . . 2 2 1 2 2 5 3 2 3 3 3 3 4 - - f 3 t 3 ft 3 3 3 3 ft 1967— N Ap o r v . . 2 2 1 0 7 7 4 . . . . 4 4 4 4 f - - t 4 4 f f t t 4 4 4 4 f f t t A M F M e p a a b r r y . . . 2 2 1 6 3 2 4 1 5 5 5 3 ft 5 5 4 - 3 - - f 5 6 t 4 5 3 f 4 t 6 5 5 5 5 3 f f f / t t t 4 M A M p a a r r y . . 2 2 1 1 7 4 9 8 1 3 2 2 2 1 1 3 1 3 / / 2 4 4 1 4 4 - 3 1 - - - 2 2 / 3 4 3 4 3 1 / / 4 4 2 2 2 2 1 1 3 1 1 1 3 3 / / / / 4 / 4 4 4 4 4 1968—M A A p u a r g r . . . 2 2 1 3 1 1 2 6 6 0 5 9 , , . , , . 4 5 5 f y 5 5 t 541 - - f - 5 / t 5 5 4 f f t t 4 5 5 5 5 51 f f f f t / t t t 4 J J A u u u n ly g e . 1 1 2 1 1 2 1 3 4 5 8 . 6 7 6 6 7 7 f - f - t t 7 6 f f t t 6 6 6 7 7 7 f f f f t t t t Aug. 15 134-2 13/4 Dec. 18, 5i/4-5ft 5ft Sept. 12 134-2 2 20. 5ft 5ft 1974—Apr. 25 71/2-8 23 2 2 3 0 8 Oct. 24 2 -2ft 2 1969—Apr. 4, 5ft-6 6 Nov. 7 2ft 2ft 8, 6 6 In effect Oct. 31, 1974 8 1970—Nov. 11 5H-6 6 13 534-6 534 53/4 53/4 16, 00 OO 00 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, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Time 3 Net demand 2 (all classes of Net demand 2,4 banks) Effective Effective date i Reserve city Other Other time date Other time Sav- 0-2 2-10 10-100 100-100 Over Sav- Ov 5 e r 0-5 Ov 5 e r ings Ov 5 e r 400 5 ings O 5 ve r 6 In effect 1972—Nov. 9.. 10 12 7 161/2 171/2 83 Jan.1,1963. 161/z 12 Nov. 16. 13 1966—July 14, 21 . 1973—July 19.. Id/2 121/2 131/2 18 Sept. 8, 15. 1967—Mar. 2.... 31/2 31/2 In effect 1968—J M an ar . . 1 1 1, 6 . 1 . 8 .. . 161/z 17 12 121/2 3 3 Oct. 31, 1974. IOI/2 12i/2 131/2 18 1 19 9 7 6 0 9 — — O Ap ct r . . 1 1 7.... 17 17i/2 121/2 13 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks. 10 22 Net demand deposits, other banks 7 14 Time deposits 3 10 1 When two dates are shown, the first applies to the change at reserve 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 prior 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 categories 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 16l/z 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 • NOVEMBER 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% Savings deposits Other time deposits:1 Other time deposits (multiple- and single- Multiple maturity: 2 maturity): 30-89 days 4 4i/2 Less than $100,000: 90 days to 1 year 5 30-89 days 5 h 1 year to 2 years 5 90 days to 1 year 51/2 2 years or more 5V4 1 year to 2 Vi years 6 Single-maturity: 2 Vi years or more 61/2 61/2 Less than $100,000: 4 years or more in minimum denom- 3 2 1 0 y y e d e a a a r r y s s t a o t n o d 2 1 o y v y e e a e r a r s r 5Vi 5 5 5 1 */ / 4 2 $100,000 i o n r a m tio o n r e o f $1,000 ( ( 3 4 ) ) 7 ( 1 3 / ) 4 $100,000 or more: 30-59 days 5^2 (3) 60-89 days 5V4 (3) 90-179 days 51/2 51/2 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r e y ear }61/4 ( ( 3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see certificates with minimum denomination of $1,000. The amount of such BULLETIN for Feb. 1968, p. 167. certificates that a bank could issue was limited to 5 per cent of its total 2 Multiple-maturity time deposits include deposits that are automati- time and savings deposits. Sales in excess of that amount were subject to cally renewable at maturity without action by the depositor and deposits the 6Vi per cent ceiling that applies to time deposits maturing in 2y2 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 7l/4 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. 6 3 0 0 - - 8 5 9 9 d da a y y s s 6 6Y % 2 p p e e r r c c e e n nt t l f June 24, 1970 NOTE.—Maximum rates that may be paid by member banks are estab- 90-179 days 6 Y4 per cent I lished by the Board of Governors under provisions of Regulation Q; 180 days to 1 year 7 per cent [ May 16, 1973 however, a member bank may not pay a rate in excess of the maximum 1 year or more 7Vi per cent] rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Rates on multiple-maturity time deposits in denomination of $100,000 Feb. 1, 1936, maximum rates that may be paid by nonmember insured or more were suspended July 16, 1973, when the distinction between commercial banks, as established by the FDIC, have been the same as single- and multiple-maturity deposits was eliminated. those in effect for member banks. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year For previous changes, see earlier issues of the BULLETIN. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4. 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31. 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 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. 15. 70 70 1958—Jan. 16 Aug. 4, 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 27, 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5. 50 50 1963—Nov. 6 1968—Mar. 10. 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 5. 80 60 80 1970—May 6 1971—Dec. 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

NOVEMBER 1974 • OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills 1 Others within 1 year 2 1-5 years 5-10 years Over 10 years 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 pur- sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions 1970 111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000777777777777777777444444444444444444 555555555555555555,,,,,,,,,,,,,,,,,,222222222222222222111111111111111111444444444444444444 222222,,,,,,111111666666000000 999999999999 ------333333,,,,,,444444888888333333 888884444488888 555555,,,,,,444444333333000000 222224444499999 -----11111,,,,,888884444455555 9999933333 -----111110000022222 1971 888888888888888888,,,,,,,,,,,,,,,,,,888888888888888888999999999999999999666666666666666666 333333333333333333,,,,,,,,,,,,,,,,,,666666666666666666444444444444444444222222222222222222 111111,,,,,,000000666666444444 111111,,,,,,000000333333666666 ------666666,,,,,,444444666666222222 11111,,,,,333333333388888 444444,,,,,,666666777777222222 999993333333333 666668888855555 333331111111111 111115555500000 1972 888888888888888888,,,,,,,,,,,,,,,,,,555555555555555555222222222222222222222222222222222222 666666666666666666,,,,,,,,,,,,,,,,,,444444444444444444666666666666666666777777777777777777 222222,,,,,,555555444444555555 111111222222555555 222222,,,,,,999999333333333333 777778888899999 ------111111,,,,,,444444000000555555 555553333399999 -----22222,,,,,000009999944444 111116666677777 222225555500000 1973 111111111111111111555555555555555555,,,,,,,,,,,,,,,,,,555555555555555555111111111111111111777777777777777777 444444444444444444,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888000000000000000000 333333,,,,,,444444000000555555 111111,,,,,,333333999999666666 ------111111444444000000 555557777799999 ------222222,,,,,,000000222222888888 555550000000000 888889999955555 111112222299999 8888877777 11997733——SSeepptt........ 444444444444444444888888888888888888000000000000000000 444444444444444444000000000000000000111111111111111111 555555666666444444 888888333333666666 ------888888111111333333 ------222222333333 OOcctt 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 FFFFFFFFFeeeeeeeeebbbbbbbbb.................................... 777777777777777777666666666666666666888888888888888888 333333333333333333999999999999999999111111111111111111 444444411111110000000 668877 33333333330000000000 --992222 220000 3355 MMMMMMMMMaaaaaaaaarrrrrrrrr 666666666666666666666666666666666666444444444444444444 555555555555555555666666666666666666666666666666666666 111111166666665555555 111111111100000000009999999999 5566 2255 AAAAAAAAAppppppppprrrrrrrrr.................. .................. 111111111111111111,,,,,,,,,,,,,,,,,,222222222222222222333333333333333333777777777777777777 444444444444444444999999999999999999 444444400000007777777 111111111177777777772222222222 MMMMMMMMMaaaaaaaaayyyyyyyyy......... ......... ......... 777777777777777777333333333333333333777777777777777777 111111111111111111000000000000000000000000000000000000 111111112222 22,,556633 22222222226666666666 --22,,666633 33331111 33338888 110000 JJJJJJJJJuuuuuuuuunnnnnnnnneeeeeeeee........................... 666666666666666666111111111111111111444444444444444444 999999999999999999555555555555555555444444444444444444 220044 44448888 33333333334444444444 77778888 11116666 JJJJJJJJJuuuuuuuuulllllllllyyyyyyyyy.................................... 999999999999999999888888888888888888888888888888888888 222222222222222222111111111111111111111111111111111111 22227777 55555555553333333333 9999 33336666 AAAAAAAAAuuuuuuuuuggggggggg 111111111111111111,,,,,,,,,,,,,,,,,,666666666666666666555555555555555555444444444444444444 888888888888888888555555555555555555111111111111111111 ---222,,,888666777 111,,,000555777 11,,994400 --113300 SSSSSSSSSeeeeeeeeepppppppppttttttttt.................................... 777777777777777777111111111111111111777777777777777777 555555555555555555666666666666666666555555555555555555 778866 2222 ---222000000 6655 222000000 5533 3377 Matched Repurchase Federal agency obligations Bankers Total outright 3 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, Repurpur- Gross Redemp- Gross pur- pur- Gross pur- redemp- net Out- chase chases sales tions sales chases chases sales chases tions right agreements 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1973—Sept.. 1,316 401 1,400 6,981 6,981 3,309 2,752 72 30 -95 -9 69 7 Oct.. 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 -46 2,440 Nov.. 1,116 489 1,101 2,089 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 -1,307 Dec.. 2,145 70 10 3,435 3,435 9,523 10,202 1.387 212 84 -126 23 -26 1,386 1974—Jan.. 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 -328 Feb.. 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 72 Mar.. 854 566 165 702 702 6,248 5,124 1,247 170 48 185 223 1,780 Apr.. 1,409 49 407 8,069 8,498 524 360 48 33 —89 789 May. 944 100 4.586 4,586 9,192 8,648 1.388 201 15 424 16 142 2,155 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 11,285 2,096 2,096 3,028 238 3 59 3,322 Sept.. 893 565 9,420 9,782 3,551 3,551 -96 207 16 40 187 322 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 n r d i o o d f Total P st o e u rl n in d g s s A c u h s il t l r i i n a g n s B f e ra 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 ese g N u l e a i t l n h d d e e s r r s - f S r w an is c s s 1970 257 154 ******* 9988 1 1 9 9 7 7 1 2 19 1 2 8 3 « 3*3*3*3*3*3*3* 1166 22 44 20 ** 1973—July 4 • * * * * * * * * * * * * * * Aug 5 * ••••••• 1 Sept 4 * * Oct 4 * * Nov 4 * * Dec 4 * « 1974—Jan 1 * * Feb 32 * 22222220000000 11**00 Mar 6 * 5555555 Apr 6 * 5555555 « May 63 * 5555555 555777 June 90 * 5555555 888444 July 8 • 666 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1974 1974 1973 Oct. 30 Oct. 23 Oct. 16 Oct. 9 Oct. 2 Oct. 31 Sept. 30 Oct. 31 Assets Gold certificate account 11,460 11,460 11,460 11,460 11,460 11,460 11,460 11,460 Special Drawing Rights certificate account 400 400 400 400 400 400 400 400 241 249 238 234 231 245 237 315 Loans: 1,851 2,481 1,762 800 2,829 1,120 2,920 2,198 Other Acceptances: 222200 213 331144 311 331122 216 317 4477 110066 3 554400 4 227766 2 187 6600 Federal agency obligations: 44,,001111 4,011 44,,001111 4,011 44,,001111 4,011 4,011 11,,773399 334444 11,,006611 118822 114488 U.S. Govt, securities: Bought outright: Bills 3355,,996633 36,867 3355,,773388 32,762 3388,,007744 36,535 38,219 3366,,006655 Other 39,719 39,719 39,719 39,719 39,7i9 39,719 39,719 37,374 3,097 3,097 3,097 3,097 3,097 3,097 3,097 3,428 TToottaall bboouugghhtt oouuttrriigghhtt 11,,22 7788,,777799 1,2 79,683 11,,22 7788,,555544 1,2 75,578 11,,228800,,889900 1,279,351 1 81,035 11 7766,,886677 HHeelldd uunnddeerr rreeppuurrcchhaassee aaggrreeeemmeennttss 446600 22,,112222 444400 11,,662244 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 79,239 79,683 80,676 75,578 81,330 79,351 81,035 78,491 85,771 86,391 88,364 80,704 88,940 84,700 88,470 82,683 P 7,813 P 8,045 P 10,573 P 7,711 8,592 P 7,410 5,867 8,306 253 253 251 250 249 254 248 217 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss::::::::: 190 182 182 207 242 190 242 4 2,986 2,956 2,916 2,889 1,053 2,998 991 1,044 * 109,114 P 109,936 p 114,384 P 103,855 111,167 P 107,657 107,915 104,429 LLLLLLLLLiiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 67,285 67,290 67,622 67,310 66,603 67,207 66,219 60,943 DDDDDDDDDeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss::::::::: P 30,452 P 31,137 P 34,026 P 25,891 31,229 P 29,888 29,266 31,787 1,079 1,393 629 1,179 3,255 787 3,209 1,837 404 282 328 296 313 376 411 426 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr::::::::: AAAAAAAAAllllllllllllllllll ooooooooottttttttthhhhhhhhheeeeeeeeerrrrrrrrr333333333 3 844 3 916 3 789 3 798 3 822 3 815 3 718 719 * 32,779 P 33,728 P 35,772 P 28,164 35,619 P 31,866 33,604 34,769 DDDDDDDDDeeeeeeeeefffffffffeeeeeeeeerrrrrrrrrrrrrrrrrreeeeeeeeeddddddddd aaaaaaaaavvvvvvvvvaaaaaaaaaiiiiiiiiilllllllllaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy cccccccccaaaaaaaaassssssssshhhhhhhhh iiiiiiiiittttttttteeeeeeeeemmmmmmmmmsssssssss......... 5,569 5,572 7,691 5,284 5,852 5,080 4,407 5,652 1,220 1,198 1,274 1,176 1,288 1,216 1,407 986 P 106,853 P 107,788 P 112,359 P 101,934 109,362 P 105,369 105,637 102,350 CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 888 888 888 887 885 891 886 834 844 844 844 844 844 844 844 793 529 416 293 190 76 553 548 452 * 109,114 P 109,936 P 114,384 P 103,855 111,167 P 107,657 107,915 104,429 CCCCCCCCCooooooooonnnnnnnnntttttttttiiiiiiiiinnnnnnnnngggggggggeeeeeeeeennnnnnnnnttttttttt llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy ooooooooonnnnnnnnn aaaaaaaaacccccccccccccccccceeeeeeeeeppppppppptttttttttaaaaaaaaannnnnnnnnccccccccceeeeeeeeesssssssss pppppppppuuuuuuuuurrrrrrrrrccccccccchhhhhhhhhaaaaaaaaassssssssseeeeeeeeeddddddddd fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccooooooooorrrrrrrrrrrrrrrrrreeeeeeeeessssssssspppppppppooooooooonnnnnnnnndddddddddeeeeeeeeennnnnnnnntttttttttsssssssss 2,022 1,973 1,575 1,509 1,510 2,037 1,459 589 MMMMMMMMMaaaaaaaaarrrrrrrrrkkkkkkkkkeeeeeeeeetttttttttaaaaaaaaabbbbbbbbbllllllllleeeeeeeee UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss hhhhhhhhheeeeeeeeelllllllllddddddddd iiiiiiiiinnnnnnnnn cccccccccuuuuuuuuussssssssstttttttttooooooooodddddddddyyyyyyyyy fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn aaaaaaaaannnnnnnnnddddddddd iiiiiiiiinnnnnnnnnttttttttteeeeeeeeerrrrrrrrrnnnnnnnnnaaaaaaaaatttttttttiiiiiiiiiooooooooonnnnnnnnnaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 31,420 31,439 31,471 30,880 31,142 31,763 30,833 27,230 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank) 71,617 71,568 71,427 71,125 71,153 71,621 71,124 65,119 Collateral held against notes outstanding: 2,405 2,405 2,380 2,380 2,360 2,405 2,360 2,415 U.S. Govt, securities 70,545 70,515 70,315 70,115 70,115 70,545 70,115 64,630 72,950 72,920 72,695 72,495 72,475 72,950 72,475 67,045 i See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 IIIttteeemmm 1974 1974 1973 Oct. 30 Oct. 23 Oct. 16 Oct. 9 Oct. 2 Oct. 31 Sept. 30 Oct. 31 1,851 2,481 1,762 800 2,828 1,120 2,920 2,198 Within 15 days 1,800 2,461 1,697 632 2,673 1,059 2,814 2,147 16 days to 90 days 51 20 65 168 155 61 106 51 91 days to 1 year Acceptances—Total 332266 221166 885544 331155 558888 221188 550044 107 Within 15 days 115577 5511 558855 4477 330033 5577 220022 71 16 days to 90 days 114477 115500 225522 224411 223388 114411 225533 36 91 days to 1 year 2222 1155 1177 2277 4477 2200 4499 U.S. Government securities—Total 7799,,223399 7799,,668833 8800,,667766 7755,,557788 8811,,333300 7799,,335511 8811,,003355 78,491 Within 15 days* 44,,778877 44,,779977 66,,884400 33,,779933 55,,118800 55,,440088 33,,334400 7,389 16 days to 90 days 2200,,111166 2200,,113366 1199,,330055 1166,,112222 2200,,117766 1188,,225555 2211,,774477 18,588 91 days to 1 year 2211,,118822 2211,,559966 2211,,337777 2222,,550099 2222,,882200 2222,,553344 2222,,779944 19,306 Over 1 year to 5 years 2211,,228899 2211,,228899 2211,,228899 2211,,228899 2211,,228899 2211,,228899 2211,,228899 22,148 Over 5 years to 10 years 99,,994466 99,,994466 99,,994466 99,,994466 99,,994466 99,,994466 99,,994466 9,358 Over 10 years 11,,991199 11,,991199 11,,991199 11,,991199 11,,991199 11,,991199 11,,991199 1,702 Federal agency obligations—Total 44,,335555 44,,001111 55,,007722 44,,001111 44,,119933 44,,001111 44,,001111 1,887 Within 15 days1 335533 88 11,,007788 1177 118822 88 2255 148 16 days to 90 days 114433 114444 114477 114477 115555 114444 115555 126 91 days to 1 year 559988 559988 559933 559933 660022 559988 557777 290 Over 1 year to 5 years 11,,993377 11,,993377 11,,889944 11,,889944 11,,889944 11,,993377 11,,889944 671 Over 5 years to 10 years 883366 883366 887722 887722 887722 883366 887722 425 Over 10 years 448888 448888 448888 448888 448888 448888 448888 227 * 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 * Turnover of demand deposits (billions of dollars) PPPeeerrriiioooddd SSMM TT 22 oo SS 33 tt 33 AA aa ll '' ss N Le .Y ad . ing S 6 M o S t A he 's r s 2 TT SS oo NN MM (( tt ee aa .. xx SS YY ll cc AA .. ll 22 )) .. '' 33 ss 22 SSMM oo 22 tthh SS 2266 ee AA rr '' ss SSMM TT 22 oo SS 33 tt 33 AA aa ll '' ss N Le .Y ad . ing S 6 M o S th A e ' r s s 2 TT SS oo NN MM (( tt ee aa .. xx SS YY ll cc AA .. ll 22 )) .. '' 33 ss 22 SSMM oo 22 tthh SS 2266 ee AA rr '' ss 1973—Sept 17,918.7 8,025.3 4,195.7 9,893.3 5,697.6 107.4 266.4 111.6 72.4 57.5 Oct 18,394.4 8,137.2 4,418.0 10,257.2 5,839.1 109.5 265.3 116.4 74.7 58.8 Nov 19,049.5 8,437.9 4,519.8 10,611.6 6,091.7 113.2 274.9 118.6 77.1 61.2 Dec 18,641.3 8,097.7 4,462.8 10,543.6 6,080.8 110.2 269.8 115.0 75.8 60.6 1974—Jan 18,817.7 8,081.0 4,517.1 10,736.8 6,219.6 111.5 270.3 116.2 77.3 62.2 Feb 19,813.7 8,896.2 4,582.1 10,917.5 6,335.4 '118.0 294.2 119.9 '79.3 63.6 Mar 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 Apr r20,062.3 8,637.9 4,747.6 '11,424.3 '6,676.7 115.4 274.6 119.7 80.2 65.0 May r20,564.7 8,970.1 4,820.8 '11,594.6 '6,773.8 117.1 275.3 122.3 81.0 '65.4 June '20,458.2 9,065.7 4,768.0 '11,392.5 '6,624.5 '116.9 279.9 120.0 79.8 '64.4 July 20,900.6 9,140.4 4,892.1 11,760.2 6,868.1 119.8 282.1 123.5 '82.8 '67.0 Aug.' 21,479.4 9,240.8 5,173.0 12,238.7 7,065.7 123.4 286.4 132.1 86.3 68.8 Sept 22,017.5 9,970.8 5,092.1 12,046.7 6,954.7 125.1 310.5 127.5 83.7 66.9 1 Excludes interbank and U.S. Govt, demand deposit accounts. NOTE.—Total SMSA's includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 MONEY STOCK • NOVEMBER 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mx M2 Mi Mi Mi Mt Composition of measures is described in the NOTE below. 1971—De c 235.2 473.0 727.9 241.9 477.9 730.9 1972—De c 255.7 525.5 822.8 263.0 530.6 826.2 1973—Sept.. . . 265.5 556.8 873.5 264.0 554.4 870.0 Oct 266.6 561.9 880.3 266.1 560.1 877.2 Nov... . 269.2 567.3 887.7 270.9 565.7 884.0 Dec 271.4 572.1 894.8 279.1 577.2 898.4 1974—Ja n 270.6 575.1 900.1 277.8 581.1 905.7 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 Apr 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.. .. 280.6 602.0 936.4 277.2 598.1 932.2 Sept 280.7 603.1 938.4 279.2 600.5 934.6 Week ending— 1974—Sept. 4 280.9 603.1 278.4 600.2 280.6 602.7 280.5 601.8 18 280.8 603.3 280.9 602.1 25 279.8 602.0 276.4 597.3 Oct. 2 280.9 603.9 278.9 601.1 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. Mm Averages of daily figures for (1) demand deposits of commercial Ms: 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 Ma: Averages of daily figures for Mi plus savings deposits, time de- and "Announcements" on p. 681 of the Sept. 1974 BULLETIN. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Month Time and savings Non- Time and savings Non- Govt, deposits bank Demand deposits deposits bank de- Cur- De- thrift Cur- thrift posren- mand insti- ren- insti- its3 cy de- tu- cy Do- tupos- tions2 mes- tions2 its CD's1 Other Total Total Mem- tic- CD's1 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—Sept.. 60.2 205.3 66.7 291.4 358.0 316.7 60.1 203.8 148.2 53.3 68.8 290.5 359.3 315.6 5.3 Oct.. 60.5 206.1 63.8 295.3 359.1 318.5 60.4 205.7 149.7 53.8 66.3 294.0 360.3 317.0 6.0 Nov.. 61.0 208.2 62.0 298.1 360.1 320.4 61.5 209.5 151.8 55.1 64.1 294.8 359.0 318.3 4.3 Dec.. 61.7 209.7 62.8 300.6 363.5 322.7 62.7 216.4 157.0 56.6 64.1 298.1 362.2 321.2 6.3 1974—Jan... 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 Apr.. 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 7.6 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 6.1 July.. 64.9 215.1 85.4 319.0 404.3 334.0 65.4 213.8 154.2 56.8 83.3 318.6 402.0 335.6 5.4 Aug.. 65.6 215.1 84.7 321.4 406.1 334.4 65.8 211.4 152.1 56.5 87.4 320.8 408.3 334.2 3.9 Sept.. 66.0 214.8 86.0 322.3 408.3 335.3 65.9 213.3 153.2 57.1 88.9 321.3 410.2 334.1 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 88.5 321.7 410.2 3.3 11. 66.0 214.6 86.0 322.1 408.0 66.4 214.1 153.2 58.1 89.0 321.3 410.3 3.8 18. 65.9 214.9 85.8 322.5 408.3 66.0 215.0 154.0 57.9 88.2 321.1 409.3 5.6 25. 66.0 213.9 86.4 322.2 408.6 65.4 210.9 151.6 56.3 89.1 320.9 410.0 7.0 Oct. 2 65.9 215.0 86.4 323.0 409.5 65.5 213.4 154.2 56.3 89.5 322.2 411.7 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

NOVEMBER 1974 • BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 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... . 37.25 33.97 37.07 35.29 480.9 315.2 160.1 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 DDDDaaaatttteeee llloooaaannnsss Commercial llloooaaannnsss Commercial aaannnddd and industrial3 aaannnddd and industrial3 iiinnnvvveeesssttt--- PPlluuss UU..SS.. iiinnnvvveeesssttt--- PPlluuss UU..SS.. mmmeeennntttsss 111 TToottaall ll ss lloo oo aa lldd nn 22 ss Total l P oa lu n s s TTrr uu ee rr aa yy ss -- OOtthheerr44 mmmeeennntttsss 111 TToottaall ii ll ss oo oo aa lldd nn 22 ss Total l P oa lu n s s TTrr uu ee rr aa yy ss -- OOtthheerr44 sold2 sold2 1970—Dec. 31 435.5 291.7 294.7 110.0 112.1 57.9 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Dec. 31 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—July 25 608.8 427.5 431.5 151.2 153.7 59.8 121.5 607.4 429.3 433.3 151.6 154.1 56.5 121.7 Aug. 29 617.4 435.9 440.6 153.4 156.3 57.9 123.6 613.4 435.2 439.9 152.0 154.9 54.9 123.3 Sept. 26 620.2 439.1 443.7 153.7 156.6 56.4 124.7 619.9 440.1 444.7 153.8 156.7 55.1 124.8 Oct. 31 624.2 441.1 445.7 153.6 156.5 55.1 128.0 624.0 440.9 445.6 152.9 155.8 56.0 127.0 Nov. 28 628.4 445.5 449.8 155.0 157.7 55.0 127.9 628.2 443.9 448.3 154.1 156.8 57.8 126.5 Dec. 31 630.3 447.3 451.6 155.8 158.4 52.8 130.2 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Jan 30 638.9 452.9 457.3 157.9 160.5 54.5 131.5 638.4 448.9 453.3 156.2 158.8 58.8 130.7 Feb 27. . , 647.4 458.3 463.3 159.5 162.2 56.4 132.7 642.1 452.7 457.7 157.9 160.6 57.7 131.7 Mar 27. . , 657.5 468.2 473.1 165.1 167.9 56.4 132.9 654.0 463.0 467.9 164.9 167.7 57.5 133.5 Apr. 24 666.9 476.3 481.7 169.5 172.6 57.1 133.5 664.2 473.0 478.4 170.2 173.3 56.4 134.7 May 29 673.4 481.4 487.1 172.9 176.0 57.2 134.8 669.8 480.3 485.9 172.3 175.4 54.1 135.5 June 305 677.5 484.5 489.9 174.6 177.5 56.4 136.6 681.6 491.8 497.2 177.2 180.1 52.1 137.6 July 31*.... 686.6 494.3 499.7 177.9 180.8 55.8 136.5 685.4 496.6 502.0 178.3 181.2 52.2 136.6 Aug. 28 p 692.0 500.2 505.1 180.7 183.6 55.3 136.5 687.5 499.3 504.2 179.1 182.0 52.0 136.2 Sept 25p 687.0 498.2 503.1 180.8 183.6 52.2 136.6 686.6 499.2 504.2 180.9 183.7 50.6 136.7 Oct. 30* 687.1 499.5 504.3 182.5 185.3 49.7 137.9 685.8 498.2 503.0 181.3 184.1 50.6 137.0 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 • NOVEMBER 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 Interbank3 Other TToottaall Num- FFRRSS mmeemmbbeerrsshhiipp Cash lia- Bor- ccaappiittaall ber aanndd FFDDIICC assets 3 bbiilliittiieess row- aacc-- of iinnssuurraannccee Total Loans aanndd Total3 Demand ings ccoouunnttss banks l U.S. ccaappiittaall De- Treas- Other aacc-- mand Time Time5 ury 2 ccoouunnttss44 U.S. Govt. Other Last-Wednesday-of-month series6 All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26.551 79,104 71,283 10,982 44,349 15,952 23 7,173 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 1960—Dec. 31... 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 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 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 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 1973—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 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 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 1974—Jan. 30 674,620 485,110 58,810 700 103,130 811,700 652,250 31,660 6,620 9,520 233,460 370,990 65,830 58,350 Feb. 27 681,360 491.950 57,670 740 102,410 818,690 652,670 31,620 6,200 6,650 233,240 374,960 68,090 58,730 Mar. 27 691,080 500,100 57,510 470 104,430 831,500 661,180 32,030 6,490 6,110 235,830 380,720 69,930 59,310 Apr. 24 699,290 508,140 56,410 740 102,360 838,740 669,730 31,450 7,290 5,900 236,170 388,920 67,580 59,950 May 29 703,820 514,280 54,080 460 115,575 857,695 683,175 34,870 8,200 5,940 238,215 395,950 69,910 60,330 June 30 718,713 528.951 52,114 648 126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 July 31*.... 719,930 531,110 52,210 ,610 107,730 871,560 694,620 33,660 9,680 4,320 243,620 403,340 67,820 61,490 Aug. 28*.. .. 720,430 532,230 51,970 230 100,390 863,640 687,270 30,780 9,970 4,010 235,330 407,180 66,750 61,440 Sept. 25*.... 718,560 531,210 50,630 720 107,020 870,400 691,030 30,130 10,610 7,270 235,850 407,170 67,130 61,730 Oct. 30* 720,010 532,400 50,640 970 110,370 876,400 698,030 33,600 10,180 2,980 242,130 409,140 67,330 62,020 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 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 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 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 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 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 1973—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 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 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 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 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 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 Apr. 24.. 535,917 399,092 39,273 97,552 87,005 653,285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 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 June 30.. 550,388 415,061 35,934 99,393 108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 July 31.. 552,619 418,065 35,860 98,694 91,430 680,51 533,807 31,153 8,598 3,180 186,360 304,516 63,042 46,907 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 Sept. 25.. 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 Oct. 30*8 548,801 416,118 34,813 97,870 93,674 680.173 535,128 31,043 9,089 2,117 184,573 308.306 60,803 47,131 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 1970—Dec. 319.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 1971—Dec. 31... 514,097 345,386 64,691 104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 1972—Dec. 31... 594,502 411,525 66,679 116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 1973—Dec. 31... 678,113 490,527 57,961 129,625 116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 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 June 30... 709,904 521,424 51,832136,648 123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 23,262 8,322 4 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 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 1970—Dec. 319.. 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 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 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 1973—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 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 Jun. 30... 418,329 313,659 27,6311 77,039 73,703 516,632 407,915 20,086 4,912 5,038 145,954 231,925 48,123 For notes see p. A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 ii ss nn nn ss mm dd ii ss ff uu ii ee cc rr FF mm aa aa DD tt bb nn ii cc ee II oo CC ee rr nn ss hh bb ii yy pp Total Loans T U r u e . r S S a y e . s c - urit OO ie tt s hh 22 eerr a C ss a e s t h s 3 c c b o T a i a u l a l p o i i n n c a t t i d - t i t a - e a s l s l 4 Total 3 m D I a n e n - t d e rba TT nk iimm 3 ee G U o . D v S t . e . ma O n O d t t h h e e r r TTiimm 55 ee r B i o n o w g r s - - c c c c TT aa oo aa oo pp uu cc tt ii nn -- tt aa aa tt ll ss ll N b N baa bb uu oo nn ee ff mm rr kk ss -- Call date series Insured banks (cont.): State member: 1941—Dec. 31... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 319.. 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—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 June 30... 132,388 101,732 8,303 22,353 35,268 175,896 139,446 19,125 2,906 1,586 47,690 68,138 14,713 11,980 1,068 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. 319.. 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—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 June 30.. . 159,186 106,033 15,898 37,255 14,565 179,457 156,406 1,323 610 1,731 56,580 96;162 2,678 14,057 8,347 Noninsured nonmember: 1941—Dec. 31... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1947—Dec. 317.. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 392 478 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. 319.. 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—Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—June 30.. . 9,269 7,987 282 1,001 2,951 12,770 6,610 1,481 476 12 2,209 2,432 2,033 620 229 Total nonmember: 1941—Dec. 31... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319.. 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—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 1974—June 30.. . 168,456 114,020 16,180 38,256 17,516 192,227 163,016 2,804 1,086 1.743 58,789 98,593 4,711 14,677 8,576 1 Loans to farmers directly guaranteed by CCC were reclassified as owned domestic subsidiaries) and (2) reporting of figures for total loans securities and Export-Import Bank portfolio fund participations were and for individual categories of securities on a gross basis—that is, before reclassified from loans to securities effective June 30, 1966. This reduced deduction of valuation reserves—rather than net as previously reported. "Total loans" and increased "Other securities" by about $1 billion. "Total loans" include Federal funds sold, and beginning with June 1967 NOTE.—Data are for all commercial banks in the United States (includsecurities purchased under resale agreements, figures for which are in- ing Alaska and Hawaii, beginning with 1959). Commercial banks represent cluded in "Federal funds sold, etc.," on p. A-18. all commercial banks, both member and nonmember; stock savings Effective June 30, 1971, Farmers Home Administration notes were banks; and nondeposit trust companies. classified as "Other securities" rather than "Loans." As a result of this Figures for member banks before 1970 include mutual savings banks change, approximately $300 million was transferred to "Other securities" as follows: three before Jan. 1960 and two through Dec. 1960. Those for the period ending June 30, 1971, for all commercial banks. banks are not included in insured commercial banks. See also table (and notes) at the bottom of p. A-26. Effective June 30, 1969, commercial banks and member banks exclude 2 See first two paragraphs of note 1. a small national bank in the Virgin Islands; also, member banks exclude, 3 Reciprocal balances excluded beginning with 1942. and noninsured commercial banks include, through June 30, 1970, a small 4 Includes items not shown separately. See also note 1. member bank engaged exclusively in trust business; beginning 1973, 5 See third paragraph of note 1 above. excludes one national bank in Puerto Rico. 6 From the last-Wednesday-of-the-month series, figures for call dates Beginning Dec. 31, 1973 and June 30, 1974, respectively, member banks are shown for June and December as soon as they became available. exclude and noninsured nonmember banks include one and two nonin- 7 Beginning with Dec. 31, 1947, the series was revised; for description, sured trust companies that are members of the Federal Reserve System. see note 4, p. 587, May 1964 BULLETIN. Comparability of figures for classes of banks is affected somewhat by 8 Member bank data for Oct. exclude assets of $3.6 billion of one large changes in F.R. membership, deposit insurance status, and by mergers bank. etc. 9 Figure takes into account the following changes, which became Figures are partly estimated except on call dates. effective June 30, 1969: (1) inclusion of consolidated reports (including For revisions in series before June 30, 1947, see July 1947 BULLETIN, figures for all bank-premises subsidiaries and other significant majority- pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS • NOVEMBER 1974 ASSETS BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 All Insured NNNooonnn--commercial commercial Large banks mmmeeemmmbbbeeerrr banks banks bbbaaannnkkksss111 Total AAllll ootthheerr New York City of Other City Chicago large Cash bank balances, items in process 126,487 123,536 108,971 36,265 4,217 38,075 30,415 17,516 Currency and coin 8,378 8,350 6,245 460 131 1,983 3,671 2,133 Reserves with Federal Reserve banks 30,146 30,146 30,146 6,204 1,319 12,459 10,165 Demand balances with banks in United States. 31,853 29,824 19,732 7,560 741 3,503 7,928 12,121 Other balances with banks in United States. . . 2.517 2,080 1,295 99 71 456 669 1,222 Balances with banks in foreign countries 1,386 1,011 884 221 70 498 96 502 Cash items in process of collection 52,207 52,125 50,669 21,722 1,885 19,176 7,886 1,538 Total securities held—Book value.., 189,762 188,480 135,326 15,193 5,266 44,738 70,129 54,436 U.S. Treasury 52,114 51,832 35,934 3,715 1,207 11,586 19,426 16,180 Other U.S. Government agencies. 31,359 31,001 20,523 2,123 923 5,960 11,518 10,835 States and political subdivisions.. 99,870 99,466 74,457 8,578 2,930 25,850 37,099 25,413 All other securities 6,420 6,180 4,412 777 206 1,342 2,087 2,008 Trade-account securities 6,370 6,368 6,281 2,162 539 3,293 288 88 U.S. Treasury 707 705 691 -22 141 531 42 16 Other U.S. Government agencies. 1,472 1,472 1,462 505 148 774 35 10 States and political subdivisions.. 3,921 3,921 3,876 1,616 250 1,802 207 45 All other 269 269 253 63 186 4 17 Bank investment portfolios 183,393 182,112 129,045 13,031 4,727 41,445 69,842 54,348 U.S. Trasury 51,407 51,127 35,243 3,738 1,066 11,056 19,384 16,164 Other U.S. Government agencies. 29,886 29,528 19,061 1,617 775 5,186 11,483 10,825 States and political subdivisions.. 95,949 95,545 70,581 6,962 2,680 24,047 36,892 25,368 All other 6,151 5,911 4,159 714 206 1,156 2,083 1,992 Federal funds sold and securities resale agreements. 35,307 33,225 25,374 1,944 1,239 11,939 10,251 9,933 Commercial banks 31,612 29,530 21,780 1,692 900 9,379 9,808 9,832 Brokers and dealers 2,658 2,658 2,628 82 227 1,956 361 30 Others 1,037 1,037 966 170 112 602 82 72 Other loans 494,104 488,199 390,017 76,484 23,502 147,030 143,001 104,087 Real estate loans 126,173 125,914 92,093 7,698 1,260 35,201 47,934 34,079 Secured by farmland 5,797 5,777 2,599 6 2 340 2,251 3,199 Secured by residential 78,752 78,544 58,923 4,174 833 23,742 30,175 19,829 1- to 4-family residences. . 71,577 71,387 52,993 2,888 774 20,874 28,457 18,584 FHA insured 6,297 6,250 5,472 261 40 3,065 2,106 824 VA guaranteed 3,350 3,301 2,851 196 20 1,505 1,130 499 Other 61,930 61,836 44,669 2,431 714 16,304 25,221 17,260 Multifamily 7,175 7,157 5,930 1,286 59 2,868 1,717 1,245 FHA insured 1,064 1,046 954 179 28 491 256 110 Other 6,112 6,110 4,976 1,107 31 2,378 1,461 1,135 Secured by other properties. 41,623 41,593 30,572 3,519 425 11,119 15,509 11,052 Loans to domestic and foreign banks 13,110 11,218 10,784 5,191 954 4,027 612 2,325 Loans to other financial institutions 33,567 33,418 31,997 11,881 4,509 12,956 2,651 1,570 Loans on securities to brokers and dealers. 5,317 5,294 5,176 3,189 794 1,023 170 141 Other loans for purch./carry securities 4,217 4,175 3,533 623 338 1,597 974 684 Loans to farmers 18,444 18,423 10,885 140 222 2,622 7,901 7,558 Commercial and industrial loans 177,184 174,304 149,154 39,229 12,907 58,205 38,812 28,030 Loans to individuals 102,615 102,165 74,285 5,104 1,410 26,254 41,517 28,330 Instalment loans 78,947 78,565 56,485 2,874 735 20,051 32,825 22,462 Passenger automobilies 33,902 33,648 22,953 458 161 7,243 15,091 10,948 Residential-repair/moderize 5,151 5,142 3,788 197 38 1,522 2,030 1,363 Credit cards and related plans 9,458 9,458 8,408 969 299 4,703 2,436 1,050 Charge-account credit cards 7,017 7,016 6,322 689 272 3,541 1,820 694 Check and revolving credit plans. 2,442 2,442 2,086 280 27 1,162 617 356 Other retail consumer goods 15,364 15,340 10,890 151 111 3,723 6,906 4,474 Mobile homes 8,847 8,845 6,399 76 57 2,261 4,004 2,448 Other 6.518 6,495 4,492 74 54 1,462 2,902 2,026 Other instalment loans 15,072 14,977 10,445 1,099 126 2,859 6,362 4,627 Single-payment loans to individuals.. 23,668 23,600 17,801 2,230 676 6,203 8,692 5,868 All other loans 13,479 13,288 12,109 3,428 1,107 5,144 2,430 1,370 Total loans and securities 719,173 709,904 550,717 93,621 30,008 203,707 223,381 168,456 Fised assets—Buildings, furniture, real estate. 14,168 14,092 10,808 1,115 431 4,358 4,903 3,360 Investments in subsidiaries not consolidated.. 1,595 1,586 1,568 716 121 674 57 27 Customer alceptances outstanding 6,645 6,500 6,249 3,739 359 1,900 251 396 Other assets 16,688 16,367 14,216 3,539 771 6,537 3,368 2,472 Total assets. 884,755 871,986 o92,529 138,996 35,906 255,251 262,376 192,227 1 Member banks exclude and nonmember banks include two noninsured NOTE.—Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System, and bank-premises subsidiaries and other significant majority-owned domestic member banks exclude two national banks outside the continental United subsidiaries. Figures for total loans and for individual categories of States. securities are reported on a gross basis—that is, before deduction of 2 See table (and notes), Deposits Accumulated for Payment of Personal valuation reserves. Loans, p. 26. Back data in lesser detail were shown in previous BULLETINS. 3 Demand deposits adjusted are demand deposits other than domestic Details may not add to totals because of rounding. commercial interbank and U.S. Govt., less cash items reported as in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • COMMERCIAL BANKS A 19 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 All Insured Non- Account commercial commercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large Demand deposits 302,816 299,114 239,480 60,522 99,,001144 81,359 88,585 63,337 Mutual savings banks 1,298 1,186 1,103 472 11 171 459 196 Other individuals, partnerships, and corporations . . 216,285 215,421 165,670 26,762 6,871 61,031 71,006 50,615 U.S. Government 8,367 8,355 6,624 882 226 2,893 2,622 1,743 States and political subdivisions 19,379 19,249 14,264 1,346 202 4,076 88,,664400 5,116 Foreign governments, central banks, etc 1,698 1,534 1,514 1,307 17 182 88 185 Commercial banks in United States 34,586 33,562 32,576 18,867 1,335 9,135 3,240 2,010 Banks in foreign countries 6,131 5,786 5,532 4,332 127 955 118 598 Certified and officers' checks, etc 15,072 14,020 12,197 6,553 235 2,916 2,493 2,875 Time and savings deposits 407,561 404,653 307,881 44,468 16,233 111,622 135,559 99,679 Savings deposits 133,129 132,868 96,488 66,,116655 22,,003399 33,834 54,450 36,641 460 457 330 63 267 130 Mutual savings banks 486 465 456 275 32 129 20 30 Other individuals, partnerships, and corporations. . 207,331 206,061 159,052 25,950 10,969 58,285 63,848 4488,,227799 U.S. Government 446 446 334 53 31 100 149 111111 States and political subdivisions 47,711 47,551 35,192 2,088 1,655 14,963 16,487 12,518 Foreign governments, central banks, etc 9,581 8,843 8,668 5,074 874 2,686 33 913 Commercial banks in United States 7,502 7,301 6,784 4,437 606 1,461 280 718 Banks in foreign countries 915 661 578 426 27 100 25 338 Total deposits 710,377 703,767 547,361 104,990 25,247 192,980 224,144 163,016 Federal funds purchased and securities sold under agreements to repurchase 57,064 55,983 53,652 11,115 5,641 28,973 7,922 3,412 Other libilities for borrowed money 10,483 9,531 9,184 3,665 141 4,193 1,185 1,299 Mortgage indebtedness 1,192 1,188 1,002 78 5 386 533 189 Bank acceptances outstanding 6,916 6,761 6,509 3,980 362 1,914 253 407 Other liabilities 29,091 25,767 21,338 4,583 2,015 8,053 6,689 7,752 Total liabilities 815,123 802,997 639,046 128,411 33,410 236,499 240,726 176,076 Minority interest in consolidated subsidiaries 4 4 1 1 3 Total reserves on loans/securities 8,005 7,982 6,535 1,449 428 2,428 2,231 1,470 Reserves for bad debts (IRS) 7,709 7,691 6,347 1,448 427 2,368 2,104 1,362 Other reserves on loans 125 125 79 1 1 8 69 47 Reserves on securities 171 166 110 52 58 61 Total capital accounts 61,623 61,003 46,946 9,136 2,068 16,323 19,418 14,677 Capital notes and ebentures 4,310 4,203 3,419 752 57 1,682 929 891 Equity capital 57,313 56,801 43,526 8,384 2,012 14,641 18,490 13,786 Perferred stock 64 59 41 18 11 12 23 Common stock 14,525 14,423 10,886 2,167 562 3,542 4,614 3,640 Surplus 24,408 24,272 18,655 3,458 1,140 6,705 7,351 5,753 Undivided profits 17,398 17,196 13,329 2,737 268 4,130 6,194 4,069 Other capital reserves 917 851 616 4 41 253 318 301 Total liabilities, reserves, minority interest, capital accounts 884,755 871,986 692,529 138,996 35,906 255,251 262,376 192,227 Demand deposits adjusted3 207,657 205,072 149,611 19,051 5,569 50,155 74,837 58,046 Average total deposits (past 15 days) 693,902 687,496 532,535 96,854 24,780 189,299 221,602 161,366 Average total loans (past 15 days) 501,628 493,909 390,178 75,995 23,483 147,258 143,441 111,450 Selected ratios: Percentage of totai assets Cash and balances with other banks 14.3 14.2 15.7 26.1 11.7 14.9 11.6 9.1 Total securities held 21.4 21.6 19.6 10.9 14.7 17.5 26.7 28.3 Trading account securities ..77 .7 ..99 1.6 1.5 1.3 U.S. Treasury A .2 States and political subdivisions A A .6 1.2 .7 .7 ..11 All other trading account securities .2 .2 .2 .4 .4 .4 Bank investment portfolios 20.7 20.9 18.6 9.4 13.2 16.2 26.6 28.3 U.S. Treasury 5.8 5.9 5.1 2.7 3.0 4.3 7.4 8.4 States and political subdivisions 10.8 11.0 10.2 5.0 7.5 9.4 14.1 13.2 All other portfolio securities 4.1 4.1 3.4 1.7 2.7 2.5 5.2 6.7 Other loans and Federal funds sold 59.8 59.8 60.0 56.4 68,9 62.3 58,4 59.3 All other assets 4.4 4.4 4.7 6.6 4.7 5.3 3.3 3.3 Total loans and securities 81.3 81.4 79.5 67.4 83.6 79.8 85.1 87.6 Reserves for loans and securities .9 .9 .9 1.0 1.2 1.0 .9 .8 Equity capital—Total 6.5 6.5 6.3 6.0 5.6 5.7 7.0 7.2 Total capital accounts 7.0 7.0 6.8 6.6 5.8 6.4 7.4 7.6 Number of banks 14,337 14,108 5,761 13 9 156 5,583 8,576 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS • NOVEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com- To brokers To institutions invest- To mer- and dealers others ments com- To cial Agri- Total mer- U.S. others Total and 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. ties sees. sees. cos., etc. Large banks— Total 1973 Oct. 3 356,569 14,470 13,094 831 186 359 108,299 3,345 694 5,507 158 2,942 8,970 1 10 7 3 3 6 5 1 5 , , 9 0 1 7 7 4 1 1 7 3 , ,7 8 2 02 8 1 12 3 , , 4 8 6 8 1 9 3,3 8 4 6 6 9 1 1 5 4 9 4 2 40 5 8 4 1 1 0 0 8 7 , , 1 6 5 8 5 0 3 3 , , 3 3 1 2 6 8 1,3 6 4 3 0 4 5 5, , 3 5 2 3 3 4 1 1 5 6 9 0 2 2, , 9 9 3 3 6 2 9 8 , ,4 0 6 2 1 3 2 4 355,714 13,664 12,453 790 132 289 107,167 3,349 741 5,614 152 2,914 8,410 31 358,429 14,629 13,291 913 221 204 106,829 3,385 547 5,910 149 2,902 8,578 1974 Sept. 4 397,557 15,987 13,468 1,446 406 667 i 127,422 3,813 567 3,841 97 2,676 10,295 11 400,989 17,171 13,932 1,782 669 788 I 127,937 3,793 1,958 4,393 93 2,652 10,202 1 8 399,613 16,473 12,254 2,637 779 803 > 128,631 3,764 1,445 4,473 94 2,659 10,187 2 5 395,391 15,419 11,995 1,859 750 815 )128,371 3,737 947 3,815 95 2,645 9,900 Oct. 2* 398,190 16,938 13,834 1,300 889 915 i 128,786 3,705 898 3.709 101 2,632 10,217 9 v 401,378 19,550 14,057 3,556 836 ,101 > 128,534 3,688 2,500 4,009 91 2,634 9,707 16*! 399,351 18,515 14,723 2,059 773 960 1 129,060 3,673 61 3,457 92 2,629 9,992 23* 394,223 15,493 12,541 1,240 744 968 1 128,373 3,685 1,324 3,373 94 2,607 9,684 30* 395,366 16,135 12,814 1,823 701 797 I 128,550 3,709 966 3.710 96 2,617 9,978 New York City 1973 Oct. 3 76,242 2,106 2,011 2 5 30,801 87 588 3,294 681 2,688 10 77,423 1,573 1,451 30 ) 30,918 88 ,223 3,400 680 2,838 1 7 75,707 1,391 1,266 120 ) 30,824 94 550 3,171 678 2,635 2 4 76,854 1,960 1,839 120 1 30,738 96 653 3,542 674 2,641 31 77,465 1,639 1,507 120 12 ) 30,557 101 463 3,751 679 2,780 1974 Sept. 4 91,376 1,880 1,635 207 7 38,134 129 492 2,296 559 3,557 11 92,745 1,442 1,214 185 5 38,341 125 1,683 2,829 559 3,373 1 8 92,969 1,895 1,711 140 I 38,620 123 1,198 3,051 556 3,455 2 5 90,898 2,101 1,903 156 3 38,608 121 698 2,452 550 3,377 Oct. 2* 92,213 2,101 1,882 140 % 39,104 122 789 2,466 545 3,564 9* 92,752 1,600 1,519 54 3 39,168 117 2,146 2,755 544 3,276 16* 92,838 2,840 2,755 33 5 39,287 119 520 2,304 547 3,488 23* 91,387 2,435 2,291 72 7 38,864 122 1,187 2,289 547 3,299 30* 90,788 1,704 1,569 86 5 38,913 123 826 2,557 545 3,515 Outside New York City 1973 Oct. 3 280,327 12,364 11,083 829 186 266 9 77,498 3,258 106 2,213 122 2,261 6,282 10 284,494 16,229 12,438 3,316 159 316 1 77,237 3,228 117 2,134 121 2,252 6,185 1 7 279,367 12,337 11,195 749 144 249 6 76,856 3,234 84 2,152 122 2,258 5,826 2 4 278,860 11,704 10,614 670 132 288 7 76,429 3,253 88 2,072 119 2,240 5,769 31 280,964 12,990 11,784 793 221 192 8 76,272 3,284 84 2,159 119 2,223 5,798 1974 Sept. 4 306,181 14,107 11,833 1,239 405 630 224,31 1 89,288i 3,684 75 1,545 2,117 6,738 11 308,244 15,729 12,718 1,597 662 752 3 89,596i 3,668 275 1,564 2,093 6,829 1 8 306,644 14,578 10,543 2,497 779 759 0 90,011 3,641 247 1,422 2,103 6,732 2 5 304,493 13,318 10,092 1,703 750 773 0 89,763 3,616 249 1,363 2,095 6,523 Oct. 2* 305,977 14,837 11,952 1,160 889 836 7 89,682: 3,583 109 1,243 2,087 6,653 308,626 17,950 12,538 3,502 836 ,074 1 89,366i 3,571 354 1,254 2,090 6,431 16* 306,513 15,675 11,968 2,026 773 908 9 89,7731 3,554 98 1,153 2,082 6,504 23* 302,836 13,058 10,250 1,168 744 896 0 89,509' 3,563 137 1,084 2,060 6,385 30* 304,578 14,431 11,245 1,737 701 748 8 89,637' 3,586 140 1,153 2,072 6,463 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 Consumer For- All Certifinstal- eign other Total Bills icates Do- For- ment govts.2 Within 1 to After mes- eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1973 3,485 31,921 1,307 20,075 22,523 3,321 4,384 12,137 2,681 Oct. 3 3,356 4,789 31,966 1,339 20,257 23,179 3,971 4,428 12,069 2,711 10 3,412 4,655 32,034 1,313 20,243 22,887 3,650 4,457 12,066 2.714 17 3,395 4,744 32,127 1,288 20,315 23,108 3,917 4,494 11,982 2.715 24 3,549 4,523 32,252 1,325 20,652 23,195 3,939 4,454 12,037 2,765 31 1974 3,880 34,727 1,680 21,057 21,268 2,632 3,831 10,709 4,096 Sept. 4 3,686 6,857 34,766 1,621 20,378 21,782 3,202 3,819 10,701 4,060 11 3,727 6,755 34,824 1,639 20,225 20,876 2,472 3,737 10,636 4,031 18 3,615 6,526 34,921 1,579 20,172 20,069 1,771 3,722 10,610 3,966 25 3,650 6,343 35,006 1,643 20,782 19,766 1,224 3,691 10,939 3,912 Oct. 2* 3,571 6,338 34,995 1,636 20,057 20,104 1,551 3,643 10,927 3,983 9*> 3,430 6,566 34,923 1,611 20,378 20,553 2,032 3,624 10,903 3,994 16 p 3,406 6 34,880 1,626 20,223 20,371 1,996 3,607 10,729 4,039 23* 3,397 34,936 1,616 19,949 20,503 2,153 3,659 10,687 4,004 30 * New York City 1973 1.364 2,394 669 4,277 3,890 965 702 1,670 553 Oct. 3 1,255 2,048 2,402 657 4,450 4,196 1,253 736 1,649 558 10 1,202 1,889 2,402 651 4,427 4,254 1,205 746 1,681 622 17 1,257 1,982 2.408 642 4,517 4,361 1,370 728 1,624 639 24 1.365 1,931 2.409 670 4,762 4,587 1,411 738 1,709 729 31 1974 1,766 3,226 2,557 892 4.701 4,788 910 431 1,846 1,601 Sept. 4 1,561 3,176 2,572 832 4,444 5,315 1,558 402 1,824 1,531 11 1,604 3,145 2,580 869 4,387 4,591 949 403 1,768 1,471 18 1,561 3,042 2,622 863 4,252 4,021 418 418 1,720 1,465 25 1,654 3,032 2,599 871 4.702 3,768 33 372 1,970 1,393 Oct. 2p 1,552 3,108 2,633 885 4,239 4,097 401 336 1,898 1,462 9P 1,495 3,345 2,627 874 4,333 4,420 738 344 1,893 1,445 16P 1,513 2,880 2,615 852 4,379 4,115 472 344 1,829 1,470 23 P 1,521 2,977 2,630 832 4,080 4,322 630 361 1,853 1,478 ,30* Outside New York City 1973 2,121 2,776 29,527 638 15,798 18,633 2,356 3,682 10,467 2,128 Oct. 3 2,101 2,741 29,564 682 15,807 18,983 2,718 3,692 10,420 2,153 10 2,210 2,766 29,632 662 15,816 18,633 2,445 3,711 10,385 2,092 17 2,138 2,762 29,719 646 15,798 18,747 2,547 3,766 10,358 2,076 24 2,184 2,592 29,843 655 15,890 18,608 2,528 3,716 10,328 2,036 31 1974 2,114 3.680 32,170 788 16,356 16,480 1,722 3,400 8,863 2,495 Sept. 4 2,125 3.681 32,194 789 15,934 16,467 1,644 3,417 8,877 2,529 11 2,123 3,610 32,244 770 15,838 16,285 1.523 3,334 8,868 2,560 18 2,054 3,484 32,299 716 15,920 16,048 1,353 3,304 8,890 2,501 25 1,996 3,311 32,407 772 16,080 15,998 1,191 3,319 8,969 2,519 Oct. 2 p 2,019 3,230 32,362 751 15,818 16,007 1,150 3,307 9,029 2,521 9P 1,935 3,221 32,296 737 16,045 16,133 1,294 3,280 9,010 2,549 16* 1,893 3,130 32,265 774 15,844 16,256 1.524 3,263 8,900 2,569 23* 1,876 3,083 32,306 784 15,869 16,181 1,523 3,298 8,834 2,526 30* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS • NOVEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities CCaasshh IInnvveesstt-- Obligations Other bonds, iitteemmss Re- BBaall-- mmeennttss of States corp. stocks, iinn serves Cur- aanncceess iinn ssuubb-- Wednesday and and pprroocceessss with rency wwiitthh ssiiddiiaarr-- Other political securities ooff F.R. and ddoo-- iieess nnoott assets Total subdivisions ccoolllleecc-- Banks coin mmeessttiicc ccoonnssooll-ttiioonn bbaannkkss iiddaatteedd Tax Certif. war- All of All rants3 other partici- other5 pation4 Large banks— Total 1973 Oct. 3 57,712 7,578 38,648 2,113 9,373 31,678 22,661 4,022 10,541 1,331 21,054 10 58,110 7,515 38,875 2,238 9,482 32,649 17,406 4,229 11,175 1,335 20,825 1 7 57,524 7,391 38,524 2,173 9,436 31,829 23,700 4,215 10,406 1,412 20,681 2 4 58,188 7,604 38,562 2,213 9,809 33,369 24,937 4,378 13,161 1,415 20,217 31 59,097 7,678 38,883 2,241 10,295 34,426 25,037 4,279 13,062 1 ,340 20,999 1974 Sept. 4 62,024 6,665 41,188 2,539 11,632 37,769 25,671 4,350 11,563 1,626 29,307 11 62,178 6,672 41,103 2,603 11,800 32,897 22,681 4,711 11,187 1,616 29,185 1 8 61,943 6,601 41,043 2,557 11,742 31,479 21,833 4,709 10,955 1,628 28,700 2 5 61,873 6,561 40,819 2,616 11,877 31,307 25,124 4,756 10,695 1,590 29,552 Oct. 2 * 62,155 6,899 40,888 2,431 11,937 33,872 24,163 4,394 10,485 1,642 30,454 9P 62,295 6,963 41,127 2,494 11,711 29,963 20,139 4,448 10,505 1,622 29,932 16* 62,019 6,764 41,090 2,447 11,718 42,009 27,592 4,628 11,918 1,585 29,343 23* 61,372 6,333 40,809 2,453 11,777 33,617 24,425 4,752 10,703 1,600 29,580 30* 61,624 6,257 40,796 2,573 11,998 33,650 24,139 4,863 11,234 1 ,605 30,055 New York City 1973 Oct. 3 9,401 2,183 4,931 583 1,704 9,842 5,350 487 4,522 641 6,645 10 9,609 2,156 5,027 649 1,777 10,314 4,955 523 4,230 642 6,546 1 7 9,433 2,218 4,801 637 1,777 10,224 5,580 489 4,469 644 6,658 2 4 9,426 2,267 4,710 622 1,827 13,164 6,735 517 7,039 643 6,281 31 9,659 2,333 4,739 613 1,974 13,573 6,681 480 6,760 648 6,534 1974 Sept. 4 10,741 2,118 5,838 518 2,267 11,368 8,475 487 4,821 748 9,359 11 10,753 2,108 5,780 513 2,352 10,396 8,310 514 4,827 727 9,497 1 8 11,072 2,351 5,878 509 2,334 9,642 5,007 507 4,803 728 9,306 2 5 10,986 2,355 5,655 541 2,435 10,833 7,215 522 4,586 713 9,928 Oct. 2* 11,050 2,370 5,714 473 2,493 10,918 6,292 504 4,238 711 10,059 9P 10,917 2,284 5,778 472 2,383 10,195 5,559 523 4,492 709 10,073 16*'.! ! 10,793 2,276 5,725 427 2,365 15,911 7,252 511 5,358 709 9,539 23* 10,510 2,040 5,614 447 2,409 13.441 5,724 507 5,189 713 9,911 30* 10,496 1,977 5,541 505 2,473 12.442 7,938 524 5,363 724 10,285 Outside New York City 1973 Oct. 3 48,311 5,395 33,717 1,530 7,669 21,836 17,311 3,535 6,019 690 14,409 10 48,501 5,359 33,848 1,589 7,705 22,335 12,451 3,706 6,945 693 14,279 1 7 48,091 5,173 33,723 1,536 7,659 21,605 18,120 3,726 5,937 768 14,023 2 4 48,762 5,337 33,852 1,591 7,982 20,205 18,202 3,861 6,122 772 13,936 31 49,438 5,345 34,144 1,628 8,321 20,853 18,356 3,799 6,302 692 14,465 1974 Sept. 4 51,283 4,547 35,350 2,021 9,365 26,401 17,196 3,863 6,742 878 19,948 11 51,425 4,564 35,323 2,090 9,448 22,501 14,371 4,197 6,360 889 19,688 1 8 50,871 4,250 35,165 2,048 9,408 21,837 16,826 4,202 6,152 900 19,394 2 5 50,887 4,206 35,164 2,075 9,442 20,474 17,909 4,234 6,109 877 19,624 Oct. 2* 51,105 4,529 35,174 1,958 9,444 22,954 17,871 3,890 6,247 931 20,395 9* 51,378 4,679 35,349 2,022 9,328 19,768 14,580 3,925 6,013 913 19,859 16*!! 51,226 4,488 35,365 2,020 9,353 26,098 20,340 4,117 6,560 876 19,804 23* 50,862 4,293 35,195 2,006 9,368 20,176 18,701 4,245 5,514 887 19,669 30* 51,128 4,280 35,255 2,068 9,525 21,208 16,201 4,339 5,871 881 19,770 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi- and Dopolit- fied polit- mes- For- Total IPC ical U.S. and Total6 ical tic eign sub- Govt. Com- Mutual Com- offi- sub- inter- govts. 2 divi- mer- sav- Govts., mer- cers' Sav- Other divi- bank cial ings etc. 2 cial checks ings sions banks Large banks— Total 1973 156,014 10,371 6,317 5,512 21,246 899 952 3,654 7,063 189,784 56,172 96,585 22,598 6,036 7,968 Oct. 3 158,087 112,724 6,291 2,363 23,223 876 1,114 3.597 7,899 189,293 56,172 96,153 22,575 5,791 8,175 10 154,106 "11,660 5,913 3,173 21,128 739 1,071 3.598 6,824 189,272 56,190 96,068 22,399 5,712 8,412 17 158,684 10,439 5,931 3,677 23,592 745 1,064 3,809 9,427 189,487 56,172 95,967 22,560 5,679 8,614 24 162,134 12,876 7,159 3,480 24,607 875 1,034 3,862 8,241 188,702 56,128 95,438 22,279 5,670 8,690 31 1974 163,837 117,732 6.094 1,343 24,974 698 1,149 5,178 6,669 219,454 57,059 118,780 24,240 7,445 10,311 Sept. 4 158,643 115,076 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 11 158,107 113,850 5,609 4,579 21,342 603 1,21" 4,966 5,947 219,282 56,881 118,532 24,365 7,546 10,290 18 156,348 ,863 6,300 4,331 20,384 572 1,302 5,138 6,458 220,289 56,875 118,995 24,524 7,765 10,407 25 160,987 115,074 6,164 3,195 22,460 855 1,166 5,199 6,874 221,496 57,220 119,328 24,752 7,652 10,787 Oct. 2* 154,150 111,950 5,877 1,074 21,739 826 1,155 5,281 6,248 221,122 57,380 118,647 25,111 7,564 10,659 9* 170,097 120,145 5,984 1,850 26,780 773 1,283 5,601 7,681 221,182 57,437 118,790 25,081 7,485 10,630 16* 156,319 113,339 5,568 1,030 24,076 691 1,095 4,961 5,559 221,596 57,463 119,243 24,962 7,280 10,742 23* 159,903 114,943 6.095 1,135 23,820 681 1,247 4,631 7,351 219,960 57,415 118,147 24,602 7,220 10,621 30* New York City 1973 41,852 23,642 552 ,074 9,469 504 779 2,576 3,256 34,934 4,948 20,004 2,103 4,036 3,762 Oct. 3 42,71 23,938 419 444 10,543 476 947 2,539 3,405 34,792 4,941 19,912 2,109 3,839 3,905 10 41,482 23,383 352 610 10,076 383 889 2,556 3,233 34,717 4,932 20,057 1,925 3,728 3,999 17 47,411 23,897 358 706 12,457 364 905 2,757 5,967 34,621 4,934 19,863 1,987 3,697 4,058 24 47,967 24,648 821 603 13,234 389 880 2,818 4,574 34,711 4,939 19,732 1,986 3,762 4,212 31 1974 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 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 Sept. 4 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 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 45,234 26,190 307 485 10,219 511 937 3,869 2,716 46,753 4,932 27,892 1,892 4,423 6,443 Oct. 2* 43,499 24,187 406 121 10,648 434 943 3,947 2,813 46,536 4,945 27,712 1,949 4,355 6,384 9* 50,800 26,442 298 242 13,988 426 1,040 4,289 4,075 46,850 4,964 28,045 1,955 4,299 6,363 16* 46,580 25,580 317 109 13,385 383 883 3,657 2,266 46,914 4,957 28,155 2,016 4,142 6,360 23* 47,182 26,049 366 128 12,088 365 1,061 3,384 3,741 46,366 4,945 27,846 1,871 4,069 6,309 30* Outside New York City 1973 114,162 86,729 5,765 4,438 11,777 395 173 1,078 3,807 154,850 51,224 76,581 20,495 2,000 4,206 Oct. 3 115,376 88,786 5,872 1,919 12,680 400 167 1,058 4,494 154,501 51,231 76,241 20,466 1,952 4,270 10 112,624 88,277 5,561 2,563 11,052 356 182 1,042 3,591 154,555 51,258 76,01 20,474 1,984 4,413 17 111,273 86,542 5,573 2,971 11,135 381 159 1,052 3,460 154,866 51,238 76,104 20,573 1,982 4,556 24 114,167 88,228 6,338 2,877 11,373 486 154 1,044 3,667 153,991 51,189 75,706 20,293 1,908 4,478 31 1974 117,936 91,867 5.685 1,192 13,453 337 208 1,411 3,783 173,545 52,143 91,174 22,377 3,079 4,196 Sept. 4 114,530 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 11 115,608 89,703 5,308 3,605 11,698 290 206 1,382 3,416 173,178 51,979 90,751 22,583 3,122 4,171 18 112,275 87,034 5,806 3,511 10,536 287 233 1,453 3,415 174,004 51,973 91,360 22,644 3,238 4,193 25 115,753 88,884 5,857 2,710 12,241 344 229 1,330 4,158 174,743 52,288 91,436 22,860 3,229 4,344 Oct. 2* 110,651 87,763 5,471 953 11,091 392 212 1,334 3,435 174,586 52,435 90,935 23,162 3,209 4,275 9* 119,297 93,703 5.686 1,608 12,792 347 243 1,312 3,606 174,332 52,473 90,745 23,126 3,186 4,267 16* 109,739 87,759 5,251 921 10,691 308 212 1,304 3,293 174,682 52,506 91,088 22,946 3,138 4,382 23* 112,721 88,894 5,729 1,007 11,732 316 186 1,247 3,610 173,594 52,470 90.301 22,731 3,151 4,312 30* For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS • NOVEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed- Total time CD's Gross eral Other Total loans included in time liabili- Wednesday funds liabili- capital Total and De- and savings deposits n ties of pur- F.R. ties, Secur- loans invest- mand banks chased, Banks Others etc. 8 Loans ities (gross) ments deposits to etc. 7 ad- (gross) ad- Issued Issued their justed 9 ad- justed io Total to to foreign justed 9 IPC's others branches Large banks— Total 1973 Oct. 3 42,191 551 5,813 17,583 4,618 31,237 259,755 339,990 97,578 67,512 45,222 22,290 10 42,733 317 5,660 17,679 4,608 31,094 263,383 344,672 99,852 66,775 44,759 22,016 17 43,403 1,118 5,893 17,702 4,605 31,153 258,790 339,201 97,976 66,298 44,390 21,908 2 4 43,508 2,820 5,727 17,089 4,608 31,203 258,570 339,866 98,046 66,315 44,104 22,21 31 45,277 1,677 6,028 17,742 4,613 31,334 259,297 341,589 99,621 65,467 43,429 22,038 1974 Sept. 4 53,030 2,572 5,935 24,310 5,116 62 33,527 296,917 380,209 99,751 88,475 61,529 26,946 53,265 1,927 5,988 24,760 5,198 62 33,519 299,411 383,371 101,196 88,983 62,101 26,882 IS . 49,413 2,569 6,060 24,809 5,148 62 33,467 300,813 383,632 100,707 88,209 61,297 26,912 2 5 47,705 4,433 5,779 25,236 5.144 62 33,419 297,839 379,781 100,326 89,122 61,735 27,387 Oct. 2g*p 5 5 0 1 , , 0 7 5 4 5 2 2,1 3 8 1 3 6 5 , , 0 8 2 9 2 2 2 25 3 , , 6 6 9 1 6 0 5 5. , 1 1 4 7 5 3 6 6 4 4 3 33 3 , , 7 7 3 4 5 0 2 3 9 0 8 1 , , 7 35 8 1 5 3 3 8 8 0 3 , , 7 7 0 5 6 0 1 1 0 0 0 1 , , 4 3 6 7 0 4 8 8 9 8 , , 5 8 0 5 5 8 6 6 1 1 , ,2 8 0 3 7 2 2 27 7 , , 6 6 5 7 1 3 16* 53,900 1,278 5,544 25,526 5,148 64 33,687 298,626 381,198 99,458 88,694 61,288 27,406 23* 48,912 1,907 5,564 25,731 5,143 64 33,664 296,533 378,276 97,596 89,016 61,712 27,304 30* 50,042 1,292 5,417 25,418 5,143 64 33,673 297,028 379,155 101,298 87,714 60,662 27,052 New York City 1973 Oct. 3 9,129 10 2,585 5,997 1,320 7,902 59,576 72,867 21,467 21,096 13,300 7,796 10 9,854 2,338 5,833 1,320 7,785 60,912 74,717 21,410 20,860 13,266 7,594 2 3 1 1 4 7 1 1 9 1 1 , , , 9 4 3 9 4 2 1 3 2 8 1 6 8 0 0 2 2 2 , , , 4 2 4 5 9 1 1 9 9 5 5 6 , , , 5 9 1 3 3 8 8 5 7 1 1 1 . . , 3 3 3 2 2 2 3 4 4 7 7 7 , , , 8 9 8 1 6 6 1 1 8 5 5 6 9 9 0 , , , 9 3 5 7 4 5 1 7 2 7 7 7 3 3 4 , , , 2 7 5 3 5 9 9 8 3 2 2 20 0 \, , , 0 5 5 8 5 7 4 7 2 2 2 2 0 0 0 , , , 5 5 3 2 6 8 9 9 4 1 1 13 2 3 , , , 2 8 0 4 4 7 1 4 4 7 7 7 , , , 4 3 5 5 2 4 5 8 0 1974 Sept. 4 13,189 440 2,155 8,847 1,405 8,788 72,446 87,975 22,861 29.615 19,832 9,783 11. 14,785 2,260 9,473 1,409 8,798 73,902 89,970 22,325 29,837 20,162 9,675 1 8 12,132 250 2,387 9,418 1.417 8,755 73,991 89,654 22,239 29,746 20,027 9,719 2 5 10,934 ,527 2,236 9,507 1,424 8,709 72,427 87,434 22,572 29,969 19,931 10,038 Oct. 2* 11,848 2,371 8,498 1.418 8,813 73,859 88,677 23,612 30,235 20,168 10,067 9* . . 12,850 2,421 8,764 1,412 8,821 74,667 89,681 22,535 30,085 20,049 10,036 16*!..!!!.!!!! 12,879 230 2,197 8,928 1,415 8,819 73,375 88,588 20,659 30,149 20,295 9,854 23* 10,859 ,038 2,262 9,012 1,415 8,792 72,958 87,583 19,645 30,111 20,437 9,674 30* 12,908 370 2,140 8,924 1,408 8,766 72,880 87,698 22,524 29.616 20,039 9,577 Outside New York City 1973 Oct. 3. 33,062 541 3,228 11,586 3,298 23,335 200,179 267,123 76,1 46,416 31,922 14,494 10. 32,879 317 3,322 11,846 3.288 23,309 202,471 269,955 78,442 45,915 31,493 14,422 17. 33,460 ,118 3,442 11,715 3,282 23,285 199,238 265,962 77,404 45,729 31,149 14,580 24. 32,186 ,960 3,428 11,554 3,284 23,342 198,599 266,108 76,962 45,786 31,030 14,756 31. 33,786 ,497 3,609 11,604 3.289 23,423 198,950 266,996 79,064 45,083 30,585 14,498 1974 Sept. 4. 39,841 2,132 3,780 15,463 3,71 24,739 224,471 292,234 76,890 58,860 41,697 17,163 38,480 1,927 3,728 15,287 3,789 24,721 225,509 293,401 78,871 59,146 41,939 17,207 18! 37,281 2,319 3,673 15,391 3,731 24,712 226,822 293,978 78,468 58,463 41,270 17,193 25. 36,771 2,906 3,543 15,729 3,720 24,710 225,412 292,347 77,754 59,153 41,804 17,349 Oct. 2*. 38,207 2,183 3,521 15,112 3,755 24,927 224,926 292,029 77,848 59,270 41,664 17,606 9*. 38,892 311 3,601 16,932 3,733 24,914 226,684 294,069 78,839 58,773 41,158 17,615 16*. 41,021 1,048 3,347 16,598 3,733 24,868 225,251 292,610 78,799 58,545 40,993 17,552 23*. 38,053 869 3,302 16,719 3,728 24,872 223,575 290,693 77,951 58,905 41,275 17,630 30*. 37,134 922 3,277 16,494 3,735 24,907 224,148 291,457 78,774 58,098 40,623 17,475 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. I o All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stocks. banks, less cash items in process of collection. «Includes U.S. Govt, and foreign bank deposits, not shown separately. II 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

NOVEMBER 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 Oct. Oct. Oct. Oct. Oct. 1st 2nd 30 23 16 9 2 Oct. Sept. Aug. III II I half half Durable goods manufacturing: 1,870 1,921 1,941 1,938 1,909 -58 57 5 63 -23 79 56 -229 Machinery 8,719 8,780 8,885 8,835 8,892 -149 323 42 349 779 1,069 1,848 615 Transportation equipment 3,498 3,460 3,451 3,465 3,444 51 80 170 340 229 358 587 362 Other fabricated metal products... 3,023 3,042 3,068 3,051 3,080 -66 94 36 253 236 267 503 71 Other durable goods 55,,007711 5,120 5,160 5,184 5,140 -53 139 190 512 560 349 909 -73 Nondurable goods manufacturing: Food, liquor, and tobacco.... 4,423 4,461 4,401 4,306 4,316 -14 237 175 500 -344 112244 -220 733 Textiles, apparel, and leather 3,994 4,094 4,196 4,204 4,212 -241 -122 241 107 339 570 909 -205 Petroleum refining 1,898 1,879 1,885 1,809 1,764 121 32 -87 494 67 -175 -108 203 Chemicals and rubber 3,399 3,350 3,486 3,489 3,507 -38 128 108 311 355 255 610 -150 Other nondurable goods 22,,550066 22,,553322 22,,554444 22,,556633 2,610 -135 66 62 158 222 116 338 91 Mining, including crude petroleum and natural gas 4,630 4,565 4,554 4,455 4,549 149 49 50 290 75 312 387 -156 1,771 1,618 1,579 1,458 1,374 397 -85 -32 -195 -630 357 -273 588 6,397 6,389 6,462 6,394 6,388 18 45 -58 135 364 465 829 194 Retail 7,134 7,001 7,065 6,945 7,081 181 -43 -268 -219 557 542 1,099 -19 Transportation 6,113 6,095 6,099 6,130 6,220 -12 41 60 22 34 105 139 80 Communication 2,290 2,313 2,380 2,469 2,477 -119 26 -36 -92 326 149 475 -91 Other public utilities 7,761 7,811 7,819 8,046 8,077 -248 398 -55 1,088 1,335 -291 1,044 1,330 Construction 6,425 6,389 6,426 6,416 6,460 -19 -12 161 234 623 34 657 11 Services 11,814 11,742 11,774 11,803 11,821 27 12 35 137 405 189 594 927 10,012 10,047 10,071 9,758 9,801 267 84 171 357 576 541 1,117 682 Bankers* acceptances 1,466 11,,445522 11,,449977 1,496 1,387 114 -138 -365 381 62 443 -123 Foreign commercial and industrial 4,402 4,415 4,374 4,401 4,405 -74 -51 -330 -208 506 105 611 -361 Total classified loans 108,616 108,476 109,117 108,615 108,914 99 1,498 502 4,271 6,972 5,582 12,554 4,480 Total commercial and industrial loans of large commercial banks 128,550 128,373 129,060 128,534 128,786 179 1,646 634 4,786 7,600 5,864 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 IInndduussttrryy Oct. Sept. Aug. July June May Apr. Mar. Feb. 1st 30 25 28 31 26 29 24 27 27 III II I IV half Durable goods manufactur- Primary metals 1,103 1,133 1,104 1,116 1,105 1,111 1,083 1,064 1,046 28 41 -40 -203 1 Machinery 3,970 3,896 3,789 3,572 3,286 3,213 3,145 3,114 3,037 610 172 248 186 420 Transportation equipment. 11,,557700 11,,553355 11,,441199 1,373 1,410 1,424 1,423 1,365 1,367 125 45 81 18 126 Other fabricated metal products 1,093 1,066 1,000 996 954 960 934 911 911 112 43 17 23 60 Other durable goods 2,337 22,,226688 2,198 22,,116699 2,107 22,,001122 11,,997722 1,915 1,837 161 192 143 -16 335 Nondurable goods manufacturing: Food, liquor, and tobacco. 1,662 11,,664499 11,,660044 1,604 1,571 1,584 1,533 1,529 1,527 78 42 38 14 80 Textiles, apparel, and leather 1,187 1,151 1,171 1,182 1,128 1,120 1,147 1,089 1,043 23 39 86 -25 125 Petroleum refining 1,208 1,097 1,048 996 963 954 934 945 901 134 18 12 13 30 Chemicals and rubber 1,819 1,778 1,790 1,760 1,737 1,686 1,690 1,603 1,569 41 134 42 9 176 Other nondurable goods.. 11,,118877 11,,220044 1,189 11,,114499 1,171 1,157 11,,114455 1,139 1,080 33 32 57 -18 89 Mining, including crude petroleum and natural gas. 3,474 3,339 3,319 3,197 3,130 3,172 3,284 3,245 3,203 209 -115 287 -32 172 Trade: Commodity dealers.. 158 139 166 155 141 144 144 140 129 -2 1 13 11 14 Other wholesale 1,485 1,449 1,419 1,446 1,406 1,404 1,335 1,323 1,315 43 83 133 12 216 Retail 2,575 2,527 2,529 2,512 2,428 2,514 2,543 2,480 2,376 99 -52 274 59 222 Transportation 4,370 4,349 4,322 r4,353 4,425 4,474 4,414 4,417 4,311 -76 8 97 41 105 Communication 1,047 1,029 1,021 1,030 1,030 1,033 978 966 940 -1 64 106 2 170 Other public utilities 3,808 3,672 3,664 3,539 3,443 3,356 3,196 3,154 3,245 229 289 -98 416 191 Construction 2,238 2,272 2,218 2,183 2,130 1,984 1,908 1,898 1,940 142 232 -7 -87 225 Services 5,344 5,350 5,301 '5,275 5,273 5,263 5,223 5,076 5,004 77 197 27 330 224 All other domestic loans .... 33,,221133 33,,112222 33,,007744 33,,005588 33,,001177 22,,994455 22,,993355 2,808 22,,338844 105 209 206 17 415 Foreign commercial and industrial loans 2,486 2,401 2,500 2,565 2,548 2,396 2,369 2,350 2,321 -147 198 16 148 214 Total loans 47,334 46,426 45,845 r45,230 44,403 43,906 43,335 42,531 41,486 2,023 1,872 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 • NOVEMBER 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) rype of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s in in a e n s c s i al Consumer Foreign o A th l e l r IPC All commercial banks: 1970—Sept 17.0 88.0 51.4 1.4 10.0 167.9 Dec 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar 18.3 86.3 54.4 1.4 10.5 170.9 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 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 18.3 112.1 71.2 2.2 11.1 214.9 Sept.* 19.3 112.8 71.6 2.1 10.9 216.8 Weekly reporting banks: 1971—Dec 14.4 58.6 24.6 1.2 5.9 104.8 1972 Dec 14.7 64.4 27.1 1.4 6.6 114.3 1973—Aug 14.3 59.5 27.3 1.9 6.1 109.1 Sept 14.5 60.6 27.2 1.9 6.5 110.8 Oct 15.0 61.7 27.3 2.0 6.6 112.5 14.8 62.9 27.5 2.1 6.7 113.9 Dec 14.9 66.2 28.0 2.2 6.8 118.1 1974—Jan 15.2 63.8 28.4 2.3 6.7 116.5 Feb 14.1 62.1 26.9 2.3 6.2 111.5 Mar 14.7 61.5 27.6 2.1 6.3 112.1 Apr 14.7 62.2 29.6 2.1 6.2 114.7 May 14.2 62.3 28.0 2.1 6.1 112.7 June 14.1 63.3 28.1 2.0 6.3 113.8 July 14.4 63.6 28.4 2.1 6.5 115.1 14.1 62.6 28.0 1.9 5.8 112.5 Sept.* 13.9 64.4 28.4 2.0 6.3 115.0 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a deta description of the type of depositor in each category, see June 1 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, Apr. 24, June 30, Class of Dec. 31, Dec. 31, Apr. 24, bank 1972 1973 1974 1974 bank 1972 1973 1974 All commercial.... 559 507 460 All member—Cont. Insured 554 503 478 457 Other large banks 1 69 58 62 National member 311 288 282 265 All other member i 313 294 284 State member.... 71 64 64 65 All nonmember 177 155 All member 381 352 346 330 Insured 172 152 131 Noninsured 5 3 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for NOTE.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the BULLETIN for way in call-date series. That is, they are excluded from "Time deposits" July 1972, p. 626. Categories shown here as "Other large" and "All other and "Loans" in the monthly (and year-end) series as shown on pp. A-16; member" parallel the previous "Reserve City" (other than in New York from the figures for weekly reporting banks as shown on pp. A-20-A-24 City and the City of Chicago) and "Country" categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-15. But they are included in the figures for "Time 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

NOVEMBER 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 institutions1 To all others except banks By type of loan By type of loan Total Total Commercial Real All Commercial and estate other and industrial industrial 1974—July 3. 5,460 2,947 2,513 1,479 439 10. 5,491 2,949 2,542 1,436 396 17. 5.501 2,973 2,528 1,420 381 24. 5,572 3,050 2,522 1,428 389 31. 5,411 2,905 2,506 1,481 440 Aug. 7. 5,419 2,846 2,573 1,422 401 14. 5.502 2,882 2,620 1,413 408 21. 5,438 2,834 2,604 1,432 434 28. 5,396 3,033 2,363 1,472 491 Aug. 282 4,893 2,883 188 1,822 Sept. 4. 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 Oct. 2. 4,911 2,867 179 1,865 9. 4,976 2,845 181 1,950 16. 4,826 2,793 178 1.855 23. 4,807 2,780 175 1,852 30. 4,848 2,768 178 1,902 1 To bank's own foreign branches, nonconsolidated reporting banks, and those banks were asked to report nonbank affiliates of the bank, the bank's holding com- only loans sold to a newly defined group of related types pany (if not a bank), and nonconsolidated nonbank of institutions (for enumeration of these types, see footsubsidiaries of the holding company. note 1). A detailed comparison of the old and new data 2 Change in series. As of Aug. 28, 1974, the panel of for Aug. 28, 1974, appears in the "Announcements" reporting banks was revised to include only large weekly section of the Oct. 1974 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 Bank Bank For- into from related Other i related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 9,300 1,903 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 13,645 3,089 10,556 3,603 1,198 983 215 193 191 2,022 997 829 17,085 4,901 12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 21,173 7,201 13,972 4,428 1,544 1,344 200 58 109 2,717 1,423 952 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 33,071 409 12,262 1,940 18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 32,126 495 10,923 1,478 19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 34,721 930 11,242 1,707 20,842 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 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 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 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 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 45,491 1,429 13,990 4,072 26,000 9,101 2,706 2,251 454 68 589 5,738 2,334 3,492 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 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 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 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 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 >•45,561 1,553 13,636 5,497 '24,875 15,686 3,499 2,983 516 218 1,023 10,947 3,589 3,774 46,479 1,730 14,292 5,207 25,250 16,167 3,388 2,866 522 277 1,202 11,300 3,585 3,933 16,035 3,347 2,942 405 504 1,459 10,724 3,526 3,806 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 • NOVEMBER 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date 1973—June 8. 1974- 11 9-9i4"93/io 1974—Apr. 23. iov4«-104/IO 1974- -June 25. 19. 19 9B-914 24. 1014.- 118/10 25. 25....... 8 V10-8 34 .-9 lO^/io- 26. 111/2-1134.-- Jul} 9 3 2 . . . 8 7 M - 3 8 4 V - B 8 - ® m S Mar. 2 4 6. . . 8 8 1 7/ / 8 I 2 O 3 -8 4 - 7 8 B / 3 I 4 G - a 2 26 5 . . 1 1 0 0 1 4 1 IO / 0 1 4 1 I 0 / / 2 2 - - I B O V10- July 28 3 . . . , ! 1 1 1 3 1 3 4 1 4 8 b b /1 - _ 1 0 1 1 1 s/ 8 U / 10 . 17. 8V44*-81/2 5, 8%-86/IO- 101/2.- 12 18. 814-81/2. 834" 1034-11 5. 1 h/io-12. 2 3 3 0 . . 8s1y/ 2 2h- 8y 4 m 2 1 1 9 883344.H-8-88/81/0,O -9 30. 1011/20B 6-/10- 2 9 3 . . 1 1 2 0 b 34 -1 - 2 1 1 2 4 . - 22. 8 8/10-9 B 1034-11 1214 Aug. 2 2 2 2 1 2 1 7 8 9 3 6 . . . . . . , 8 9 9 9 9 9 9 B - 3 I 1 % 3 9 / 4 2 4 4 1 B A - - B / 9 9 4 H B 3 -9 / 4 1 H / 2 Apr. 2 2 2 6 9 8 2 3 . 9 9 9 9 9 . - H 1 1 9 4 9 / - 1 - 4 i 9 9 / 4 2 . 4 ® - V 9 /1 - ^ 4 0 9 0 - 1 - /2 May 2 3 6 . . . 1 1 1 0 0 0 - 1 1 6 ? 1 1 / 0 / / 1 2 i i 1 3 f o " 4 - r 1 - - 1 0 B 1 0 6 0 - % / L % l L f " r - - A S O e u c p t g . t . . 2 2 0 7 6 . . . 1 1 1 0 0 0 3 3 I 3 I / / 4 4 4 3 - - - 4 1 1 1 1 2 1 . 1 1 1 / 2 / 2 2 B - - Sept. 2 1 1 7 8 4 . . . 9 9 1 0 3 3 B 4 4 H -1 - 0 1 B 0 4 5 9 91 * / 9 9 9 / 1 i 1 3 3 0 o / 4 4 - 2 - 9 B B 9 1 & /2- « - - 1 1 1 3 0 7 7 . . . . n 1 1 1 1 1 1 i B 1 4 - 4 1 " - 1 1 - 1 1 ii - 4 - V V " i 1 o 0 15. 1 1 0 0 1 3 1 1 3 1 4 1 1 4 1 - 3 3 - 1 / 1 2 4 4 1 1 - 1 . . - 1 / 1 4 4 2 - Oct. 22. 9 9 1 1/ / 22- - 9 9 3 3 4 4 - H 10 -I I O 9% 10 •-98/10- 20. 21. l 1 H 13 /2 4 - 24. 91/2-934B- N 9%-98/w- June 3, 11% 11 « 3 - 4 1 16/10- 28, 10 1 % 11 - 4 n b - - 1974—Jan. 7. 91 9 /2 9/ - i 9 o 34.- 15 IO 1 B 0 - B IO I/IO- 7. 1 1 ll 6 1 / 4 l0 -1 11/2 B 111/2 14 9«/io 1014 10 Nov. 4. 1034- 11b- 29 914 97 -9 /i 1 o / 2®- 19 10- 1 1 0 1 O 4 i B /io - 2 2 1 4 L 11 L 1 L / / 2 4 B -41 - i I /2I B 3 4 111/4 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, B 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) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center Aug. May Aug. Mav Aug. May Aug. May Aug. May Aug. May 1974 1974 1974 1974 1974 1974 1974 1974 1974 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 Coast 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

NOVEMBER 1974 • INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance com pa m p e e r r c 1 i al pa C p O e . r b P an ri k m er e s F er e a d l - 3-month bills5 6-month bills5 9-to 12-month issues Period placed accept- funds 3- to 5directly, ances, rate3 year 90-119 4 to 6 3 to 6 9900 ddaayyss ** Rate Market Rate Market 1-year issues6 ddaayyss months months2 on new yield on new yield bill (mar- Other 6 issue issue ket yield)5 1967. 5.10 4.89 4,75 4,22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969 „ 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4,67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1973—Oct.. 9.14 8.92 7.84 9.07 io.oi 7.155 7.22 7.259 7.32 7.17 7.42 6.81 Nov., 9.11 8.94 7.94 8.73 10.03 7.866 7.83 7.823 7.96 7.40 7.66 6.96 Dec.. 9.28 9.08 8.16 8.94 9.95 7.364 7.45 7.444 7.56 7.01 7.38 6.80 1974—Jan.. 8.86 8.66 7.92 8.72 9.65 7.755 7.77 7.627 7.65 7.01 7.46 6.94 Feb.. 8.00 7.82 7.40 7.83 8.97 7.060 7.12 6.874 6.96 6.51 6.93 6.77 Mar.. 8.64 8.42 7.76 8.43 9.35 7.986 7.96 7.829 7.83 7.34 7.86 7.33 Apr.. 9.92 9/79 8.43 9.61 10.51 8.229 8.33 8.171 8.32 8.08 8.66 7.99 May. 10.82 10.62 8.94 10.68 11.31 8.430 8.23 8.496 8.40 8.21 8.78 8.24 June. 11.18 10.96 9.00 10.79 11.93 8.145 7.90 8.232 8.12 8.16 8.71 8.14 July.. 11.93 11.72 9.00 11.88 12.92 7.752 7.55 8.028 7.94 8.04 8.89 8.39 Aug.. 11.79 11.65 9.31 12.08 12.01 8.744 8.96 8.853 9.11 8.88 9.54 8.64 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 Oct.. 9.55 9.36 9.03 9.34 10.06 7.244 7.46 7.559 7.74 7.59 8.04 7.98 Week ending- 1974—July 12.00 11.81 9.00 11.31 13.55 7.808 7.53 8.055 8. 15 8.38 9.09 8.47 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 11.73 11.50 9.00 12.00 12.60 7.604 7.43 7.700 7.64 7.81 8.62 8.08 Aug. 3., 11.43 11.23 9.00 12.00 12.29 7.698 7.84 8.055 8.38 8.38 9.19 8.55 10.. 11.60 11.48 9.00 12.00 12.09 8.505 8.75 8.660 8.82 8.49 9.27 8.59 17., 11.73 11.63 9.05 12.08 12.02 8.763 8.75 8.719 8.78 8.50 9.33 8.58 24. 11.95 11.80 9.65 12.16 12.23 8.846 9.29 8.899 9.41 9.25 9.71 8.69 31., 12.00 11.85 9.65 12.10 11.84 9.908 9.37 9.930 9.61 9.38 9.93 8.69 Sept. 7. 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 21. 11.43 11.25 9.50 10.95 11.41 8.185 7.64 8.203 8.30 8.40 8.74 8.35 28. 10.68 10.58 9.35 10.36 11.12 7.002 6.81 7.928 7.91 8.10 8.53 8.14 Oct. 5. 10.40 10.18 9.45 9.79 11.04 6.385 6.64 7.439 7.66 7.97 8.34 8.13 12. 9.85 9.70 9.20 9.61 10.43 6.698 7.24 7.364 7.70 7.53 7.92 7.98 19. 9.50 9.31 9.13 9.31 10.11 7.722 7.73 7.829 7.79 7.60 8.04 7.95 26. 9.15 8.90 8.80 9. 12 9.81 7.524 7.60 7.398 7.62 7.40 7.90 7.90 Nov. 2. 8.95 8.83 8.53 8.95 9.72 7.892 7.95 7.766 7.86 7.51 8.02 7.98 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. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of the most representative daily offering rate published by closing bid prices. finance companies, for varying maturities in the 90-179 day range. 5 Bills quoted on bank-discount-rate basis. 3 Seven-day averages for week ending Wednesday. Beginning with 6 Selected note and bond issues. statement week ending July 25, 1973, weekly averages are based on the daily average of the range of rates on a given day weighted by the volume NOTE.—Figures for Treasury bills are the revised series described on p. of transactions at these rates. For earlier statement weeks, the averages A-35 of the Oct. 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 INTEREST RATES • NOVEMBER 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i ( S t l e t o r a n m t g e ) s - Total i Aaa Baa New ce R n e t - ly Aaa Baa In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Pre- Com- Comissue offered ferred mon mon Seasoned issues 1970 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1973—Oct... 6.26 5.03 4.76 5.31 7.90 7.94 7.96 7.60 8.41 7.76 8.24 8.04 7.18 3.05 Nov. . 6.31 5.21 5.03 5.46 7.90 7.94 8.02 7.67 8.42 7.81 8.28 8.11 7.40 3.36 Dec , 6.35 5.14 4.90 5.43 8.00 8.04 8.05 7.68 8.48 7.84 8.28 8.17 7.76 3.70 8.37 1974—Jan.. . 6.56 5.23 5.03 5.49 8.21 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 Aug. . 7.33 6.70 6.38 7.10 10.07 10.19 9.36 9.00 9.77 9.16 9.30 9.70 8.61 4.90 Sept.. 7.30 6.77 6.49 7.18 10.38 10.30 9.67 9.24 10.12 9.44 9.46 10.11 8.93 5.45 Oct , , 7.22 6.56 6.21 6.99 10.16 10.23 9.80 9.27 10.41 9.53 10.31 9.64 8.78 5.38 Week ending 11997744——SSeepptt.. 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 14. 7.31 6.79 6.50 7.20 10.27 10.30 9.61 9.20 10.05 9.40 9.43 10.05 8.92 5.42 21. 7.31 6.76 6.45 7.20 10.37 10.26 9.69 9.29 10.17 9.49 9.47 10.14 8.94 5.49 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 Oct. 5. 7.31 6.73 6.50 7.10 10.61 10.52 9.81 9.37 10.32 9.56 10.30 9.62 8.88 5.87 12. 7.26 6.55 6.20 7.00 10.36 9.84 9.38 10.39 9.58 10.33 9.66 8.93 5.49 19. 7.22 6.49 6.15 6.95 10.44 10.36 9.82 9.29 10.43 9.54 10.34 9.65 8.68 5.27 26. 7.18 6.49 6.10 6.90 10.03 10.02 9.77 9.19 10.44 9.49 10.30 9.62 8.61 5.24 Nov. 2. 7.12 6.55 6.10 7.00 9.42 9.82 9.73 9.09 10.48 9.44 10.25 9.64 8.78 5.03 Number of issues2.. . 12 20 5 5 121 20 30 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- govt.: General obligations only, based on Thurs. figures; from Moody's arately. Because of a limited number of suitable issues, the number Investor Service. (3) Corporate: Rates for "New issue" and "Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered" Aaa utility bonds are weekly averages compiled by the Board 23, 1967, there is no longer an Aaa-rated railroad bond series. of Governors of the Federal Reserve System. Rates for seasoned issues 2 Number of issues varies over time; figures shown reflect most recent are averages of daily figures from Moody's Investors Service. count. Stocks: Standard and Poor's corporate series. Dividend/price ratios are based on Wed. figures; 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 5% 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

NOVEMBER 1974 • SECURITY MARKETS A 31 SECURITY PRICES Common stock prices Volume of BBBooonnnddd ppprrriiiccceeesss New York Stock Exchange AAAmmmeeerrr--- trading in (((pppeeerrr ccceeennnttt ooofff pppaaarrr))) iiicccaaannn stocks SSStttoooccckkk (thousands of PPPPeeeerrrriiiioooodddd Standard and Poor's index New York Stock Exchange index EEExxx--- shares) (1941-43= 10) (Dec. 31, 1965 = 50) ccchhhaaannngggeee tttoootttaaalll iiinnndddeeexxx ( G l U o o . n v S g t . - , S l a o t n c a d a te l p A C o A r o a r A t - e Total In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u al s - T p t o r i a r o t n n a s - - Utility na F n i- ce 111 ((( 999 AAA 333 777 uuu 111 333 ,,, ggg === ... NYSE term) 111000000))) 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 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 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 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 1973—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 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 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 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 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 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 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 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 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 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 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 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 Oct 55.69 72.7 55.9 69.44 77.57 33.70 33.80 36.62 39.81 27.26 26.76 39.28 66.78 16,396 Week ending— Oct. 5 55.07 71.5 55.7 62.99 70.35 29.91 30.94 33.21 36.07 24.40 24.61 35.19 61.83 14,638 12 .... 55.42 73.0 55.6 67.71 75.51 32.89 33.72 35.66 38.70 26.46 26.45 37.85 65.34 19,146 19 .... 55.72 73.2 55.8 71.59 79.92 34.67 35.22 37.75 41.05 28.20 27.64 40.06 69.10 16,578 26 .... 55.95 73.4 56.0 71.60 80.04 35.00 34.48 37.80 41.09 28.37 27.44 41.03 68.53 15,036 Nov. 2 ... . 56.43 72.2 56.2 73.00 81.75 35.92 34.24 38.11 41.51 28.44 27.30 41.69 68.93 15,723 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 UUnnrreegguu-llaatteedd 33 FFFFrrrreeeeeeee ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss aaaatttt bbbbrrrrooookkkkeeeerrrrssss 4444 EEEEEnnnnnddddd ooooofffff pppppeeeeerrrrriiiiioooooddddd By source By type Margin stock Convertible Subscription NNoonnmmaarrggiinn bonds issues ssttoocckk TToottaall BBrrookkeerrss BBaannkkss ccrreeddiitt aatt bbaannkkss Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1973—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 5,996 4,925 1,071 4,760 1,013 158 45 7 13 1,739 402 1,391 Aug 55,,664499 4,672 977 4,510 925 156 39 6 13 1,759 427 1,382 Sept 44,,117733 44,,002200 114488 5 443377 11,,335544 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 • NOVEMBER 1974 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUN1S (Per cent of total debt, except as noted) (Per cent of total, except as noted) TToottaall Equity class (per cent) Equity class of accounts EE ppee nn rr dd ii oo oo dd ff ll (( dd dd ii mm oo oo ee oo ff bb nn ii ll ll -- tt ss -- 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period c st r N a e e t d u t i s t 60 o r p e i m r n o c d r e e e n b t i i t 6 L s 0 t e 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 n i a l o a l c n r e s s ) llaarrss))!! 1973—Sept 37.4 53.1 9.4 5,740 1973—Sept.. 5,730 5.0 13.9 18.9 23.9 23 ..5 16.8 38.5 46.7 14.8 5,860 Oct. . 5,690 7.2 10.0 19.9 22.6 22.1 18.2 37.5 42.2 20.3 5,882 Nov.. 5,460 5.4 6.1 12.0 16.9 19.5 40.1 Dec 39.4 40.0 20.6 5,935 Dec.. 5,050 5.8 7.7 14.4 17.4 20.3 34.2 1974—Jan 38.3 42.7 18.0 6,596 1974—Jan... 5,130 5.5 8.0 14.2 22.6 25.8 24.0 Feb 39.4 43.3 24.9 6,740 Feb... 5,230 5.4 7.4 13.3 22.6 28.0 23.3 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 39.6 42.3 19.4 6,526 Apr.. 5,370 4.4 6.0 9.9 16.5 26.5 37.0 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.. 4,760 4.0 4.8 7.9 13.3 22.2 47.9 Aug 39.9 34.0 26.0 6,783 Aug.. 4,510 3.5 4.0 6.6 11.2 18.4 56.3 Sept 40.7 31.2 27.0 7,005 Sept.. 4,020 3.5 3.9 6.1 10.2 18.0 58.3 NOTE.—Special miscellaneous accounts contain credit balances that l Note 1 appears at the bottom of p. A-30. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments M ga o g r e t - Other G U o . v S t . . S g l a o o t n c a v d a t t e l . o C t r a o h a n r e t d p e r o 1 - Cash O as t s h e e t r s g l r i T e e a a t n s o b i n e e e t i r d s r a l v i a l - e l De i p ts o s- l O ia t t i b h e i s e l i r - G r c e o e a s u n e c e n r - r v t a s e l classi ( f i i n e d m b o y n t m h a s) t urity accts. 3 or 3-6 6-9 less 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 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 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 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 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 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 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 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 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 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 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 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 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 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 74,541 4,311 2,650 884 22,383 1,402 2,487 108,660 97,713 3,144 7,803 990 586 316 74,724 4,031 2,604 879 22,292 1,334 2,519 108,383 97,067 3,475 7,841 949 496 417 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

NOVEMBER 1974 • SAVINGS INSTITUTIONS A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort- Real Policy Other assets U St n a i t t e e s d Sta lo te c a a l n d Foreign Total Bonds 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—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 Apr. 256,583 11,594 4.317 3,526 3,751 120,466 95,010 25,456 82,469 7,795 20,830 13,429 May 257,518 11,606 4.318 3,538 3,750 120,642 95,721 24,921 82,750 7,840 21,067 13,613 June 258,398 11,617 4,290 3,562 3,765 120,526 95,934 24,592 83,228 7,878 21,321 13,828 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 Aug. 258,951 11,725 4,338 3,577 3,810 119,139 96,723 22,416 84,119 7,998 21,888 14,088 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book NOTE.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. "Other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan comassets— mitments End of period M ga o g r e t s - I s i n m e t v i c e e u e s n s r 1 t t - - Cash Other lia T b o il t i a ti l es S c a a v p i i n ta g l s wo N r e t t h 2 m r B o o w n o e r e y - d 3 Loans Other ou a p t t s e e t r a n i n d o d d o i 4 n f g 197 0 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 197 1 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 197 2 206,182 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—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.. 247,106 22,050 22,486 291,642 236,777 18,435 22,821 4,592 9,017 9,860 Sept.* 248,002 21,158 22,920 292,080 238,182 18,273 24,092 4,232 7,301 9,068 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 • NOVEMBER 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 Special Other balance issues 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 ,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 1974r 264,932 268,392 -3,460 16,918 903 13,673 ,140 3,009 -3,417 898 -2,063 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, 126,164 127,947 -1,784 8,843 -661 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.-June 140,679 138,032 2,647 5,162 426 8,297 295 -3,004 -1,215 1,089 231 Month: 1973—Sep t r24,843 r20,670 r4,173 -406 43 -753 -176 567 5,207 '391 r858 Oct 17,637 23,092 -5,455 1,037 29 -292 -36 1,395 -2,588 -43 1,431 Nov 20,209 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 Apr 29,657 22,273 7,384 -2,597 37 -93 35 -2,502 3,125 1,319 -438 May 19,243 23,981 -4,739 2,773 -28 2,947 -211 8 -5,032 -1,120 -1,423 June r.... 31,259 24,172 7,087 385 29 4,178 121 -3,886 2,711 239 -252 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 Sept 28,377 24,712 3,666 -326 -167 -1,31 250 569 3,244 797 -194 Selected balances Treasury operating balance Borrowing from the public. End of Less: period Investments of B F a . n R k . s ac l c T a o o n a a u d x n n ts d t O a e r p th i o e e s s r i 4 - Total se P c d u u e b r b i l t t i i c e s se A c g u e r n it c i y e s S G p o ec v i t a , l accounts c 1 S n L p o e e t c e ss i s a : 2 l E T q o u t a a l l s: issues Other Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 197 2 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 1974' 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 Calendar year: 197 2 1,856 8,907 310 11,073 449,298 11,770 95,532 23,556 825 341,155 197 3 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 Month: 1973—Sept., 1,626 6,582 71 8,279 461,439 11,459 104,840 24,900 825 342,333 Oct.. 1,839 3,781 71 5,691 462,476 11,488 104,548 24,864 825 343,727 Nov.. 1,945 2,666 70 4,681 464,037 11,760 101,040 28,003 825 345.930 Dec.. 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 1974—Jan... 2,844 7,628 69 10,542 468,184 11,598 105,555 25,117 825 348,285 Feb.., 2,017 5,579 69 7,665 470,687 11,581 108,044 25,276 825 348,123 Mar.. 1,372 6,915 69 8,356 474,500 11,975 107,889 25,328 825 352,433 Apr.., 2,814 8,576 89 11,480 471,903 12,012 107,796 25,363 825 349.931 May. 3,134 3,226 88 6,448 474,675 11,984 110,743 25,152 825 349,939 June1" 2,919 6,152 88 9,159 475,060 12,012 114,921 25,273 825 346,053 July.. 3,822 2,544 88 6,454 6475,344 11,895 114,063 25,471 347,706 Aug.. 3,303 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 Sept.. 3,209 5,386 92 8,687 481,466 11,664 116,885 25,696 350,549 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 flexibility 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. 6 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. 4 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

NOVEMBER 1974 • FEDERAL FINANCE A 35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation Social insurance taxes Individual income taxes income taxes and contributions Period Total W he it ld h - F C p P E t u a i a r l o i e n e m g n c s d n - - . i N w h i o e t l n h d - - fu R n e d - s t N ot e a t l c G e r r i e p o - t s s s fu R n e d - s c E o P r n m t a o a t y l p r x l - i e l b o s u y a m t S n i e o e d l n n f - s t 2 i e n U m s n u p - r l. . c O e n i r t p h e e t - t e s r 3 t N ot e a t l E ta x x c e is s e t C o u m s s - E a g s n i t f d a t t e c M e r ip i 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 1974r 264,932 112,064 28 30,812 23,952 118,952 41,744 3,125 62,886 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,368 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 21,233 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.-June r 140,679 59,103 24,605 22,953 60,782 25,156 1,631 32,919 2,808 3,862 2,082 41,672 7,878 1,701 2,521 2,601 Month: 1973—Sep t r24,843 r7,942 3,903 135 11,709 5,477 230 4.812 177 103 316 5,408 1,436 238 373 r432 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 9,81' 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—Ja n 23,476 9,296 5.076 45 14,327 1,722 160 4,439 170 244 378 5,232 1,263 304 455 334 Feb 20,226 9,505 945 1,851 8,601 1,066 248 7,080 214 761 346 8,400 1,315 239 423 429 Mar 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 5,721 1,211 277 465 377 Apr 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 351 6,896 1,275 286 371 602 May 19,243 10,083 1,204 5,651 5,641 1,318 218 7,196 311 2,190 339 10,036 1,391 295 437 343 Juner 31,259 10,61 4.077 462 14,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 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 Sept 28,377 9,754 4,323 130 13,947 6,082 435 5,428 240 62 389 6,119 1,465 305 352 543 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 6,636 -8,379 1974r.... 268,392 79,387 3,527 3,252 5,156 -1,109 12,561 5,184 10,581 105,597 13,367 28,096 6,491 6,106 -9,893 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... 118,579 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 1,435 230 6,306 1,525 r5,690 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—Jan.-Juner. 138,032 42,057 1,910 1,752 1,684 -1,782 5,174 1,969 5,809 56,619 6,848 14,655 3,403 3,074 -5,141 Month: 1973—Sept.. '"20,670 '6,191 205 246 -35 422 957 712 661 r8,099 970 2,395 r681 16 -851 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 22,905 6,686 345 252 205 759 746 263 1,036 9,310 1,194 2,508 499 -898 Apr 22,273 6,751 336 293 89 -1,618 740 373 925 9,505 1,165 2,455 586 1,540 -867 May 23,981 7,243 312 278 313 428 875 352 662 10,087 1,180 2,516 498 1 -763 June r 24,172 8,062 402 447 183 -865 1,574 452 1,270 9,675 1 ,017 2,308 655 -1,007 July 24,41' 5,862 369 216 -60 498 1,099 693 854 10,060 1,258 2,525 466 1,538 -967 Aug 25,408 6,905 260 247 -61 514 2,257 773 925 9,925 1,236 2,477 727 -778 Sept 24,712 6,877 398 267 19 728 1,163 819 837 10,022 1,147 2,721 731 7 -1,026 1 Collections of these receipts, 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 Railroad 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 • NOVEMBER 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p d T g u e r o b b o t t l a s i s l c i Total Total Bills Ma C r c e k a r t e t e t if s a i b - le Notes Bonds 2 b C v i o b e o n r l n e d t- - s Total N 3 o nm F is o s a u r r e e k i s g e t n 4 a ble b S o in a n g v d s - s i S ss p u e e c s 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—-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 24.4 62.7 114.6 Aug. 481.8 362.0 272.1 110.6 127.7 33.9 2.3 87.6 • 23.2 62.8 118.7 Sept. 481.5 362.7 272.6 111.1 127.7 33.8 2.3 87.8 ' 23.2 63.0 117.4 Oct. 480.2 363.9 273.5 112.1 127.7 33.8 2.3 88.1 ' 23.2 63.3 115.3 1 Includes non-interest-bearing debt (of which $617 million on Oct. 31, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1974, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): 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 i o o d f p T g d u r o e b o t b s a l t i s l c ag G t U a e r o n n u .S v c d s t . i t , e s B F a . n R k . s m C b e a o r n m c k ia - s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c i e e r - s - r c O a o t t r i h p o e o n r - s g S l a o o t n c v a a d t t s e l . Savi I n n g d s i vidu O a t ls h er n F a i o t n a i r t o n e e n d i r g a - n l 1 t O i m o n r t v i h s s e c e s 2 . r funds bonds securities 1967—Dec.. 344.7 73.1 49.1 222.4 63.8 4.2 9.0 12.2 24.1 51.2 22.3 15.8 19.9 1968—Dec.. 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec.. 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec.. 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec.. 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec.. 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Sept. 461.4 127.8 76.2 257.4 55.4 2.9 6.3 9.2 29.0 59.8 17.3 58.5 18.9 Oct.. 462.5 127.4 78.5 256.5 56.3 2.9 6.3 10.2 28.5 60.0 17.0 57.5 17.9 Nov. 464.0 127.1 77.1 259.8 58.5 2.9 6.2 11.1 28.9 60.3 16.9 56.2 18.9 Dec., 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Jan.. 468.2 128.7 78.2 261.2 60.2 2.8 6.3 10.7 29.9 60.5 16.9 52.8 21.1 Feb.. 470.7 131.3 78.2 261.1 58.2 2.8 6.0 10.9 30.7 60.8 17.0 53.6 21.2 Mar. 474.5 131.2 79.5 263.8 59.5 2.8 6.1 11.7 30.4 61.1 17.3 54.9 20.0 Apr. 471.9 131.1 80.0 260.7 56.8 2.7 5.9 10.5 30.1 61.4 17.8 55.9 19.7 May 474.7 133.9 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 Sept. 481.5 140.6 81.0 259.8 52.9 2.5 5.7 10.5 29.3 62.5 20.8 56.0 19.5 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed se- 8 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

NOVEMBER 1974 • U.S. GOVERNMENT SECURITIES A 37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) VV ithin 1 yeair Type of holder and date Total y 1 ea -5 r s y 5 e - a 1 r 0 s 1 y 0 ea -2 r 0 s 20 O y v e e a r r s Total Bills Other All holders: 1971—Dec. 31 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Dec. 31 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Aug. 31 272,111 142,901 110,581 32,320 79,366 28,996 14,953 5,896 Sept. 30 272,608 143,349 111,099 32,250 79,410 29,044 14,924 5,879 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—Aug. 31 21,394 2,581 478 2,103 7,749 4,753 4,673 1,637 Sept. 30 21,444 2,600 514 2,086 7,783 4,751 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—Aug. 31 81,131 48,332 38,492 9,840 21,024 9,893 1,423 459 Sept. 30 81,035 47,881 38,220 9,661 21,289 9,945 1,433 486 Held by private investors: 1971—Dec. 31 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 1972—Dec. 31 180,243 91,063 73,451 17,612 57,649 17,547 9,570 4,413 1973—Dec. 31 170,746 93,162 70,227 22,935 50,939 13,241 9,063 4,341 1974—Aug. 31 169,586 91,988 71,611 20,377 50,593 14,350 8,857 3,800 Sept. 30 170,129 92,868 72,365 20,503 50,338 14,348 8,818 3,756 Commercial banks: 1971—Dec. 31 51,363 14,920 8,287 6,633 28,823 6,847 555 217 1972—Dec. 31 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Dec. 31 45,737 17,499 7,901 9,598 22,878 4,022 1,065 272 1974—Aug. 31 39,371 12,025 3,424 8,601 21,428 4,837 809 277 Sept. 30 39,042 11,823 3,227 8,596 21,246 4,932 778 263 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—Aug. 31 1,491 322 104 218 666 177 230 98 Sept. 30 1,452 349 117 232 602 177 229 94 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—Aug. 31 4,512 552 200 352 976 1,310 1,297 377 Sept. 30 4,519 519 217 302 979 1,327 1,311 383 Nonfinancial corporations: 1971—Dec. 31 6,021 4,191 3,280 911 1,492 301 16 20 1972—Dec. 31 4,948 3,604 1,198 2,406 1,198 121 25 1 1973—Dec 31 4,905 3,295 1,695 1,600 1,281 260 54 15 1974—Aug. 31 4,659 2,931 1,842 1,089 1,322 344 41 19 Sept. 30 4,250 2,673 1,606 1,067 1,204 302 51 20 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—Aug. 31 1,776 391 49 342 835 330 196 25 Sept. 30 1,729 370 53 317 820 320 193 25 State and local governments: 1971—Dec. 31 9,823 4,592 3,832 760 2,268 783 918 1,263 1972—Dec. 31 10,904 6,159 5,203 956 2,033 816 1,298 598 1973—Dec. 31 9,829 5,845 4,483 1,362 1,870 778 1,003 332 1974—Aug. 31 8,613 5,153 3,932 1,221 1,545 762 883 270 Sept. 30 8,660 4,829 3,502 1,327 1,800 856 884 291 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—Aug. 31 109,164 70,614 62,060 8,554 23,821 6,590 5,401 2,734 Sept. 30 110,477 72,305 63,643 8,662 23,687 6,434 5,372 2,680 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 734 insurance companies combined, each about 90 per cent; Ownership. (2) 467 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 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 • NOVEMBER 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 otheri dealers brokers banks 1973—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 Sept 4,114 3,327 472 265 50 683 1,351 1,022 1,058 1,227 Week ending— 1974—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 1,061 18 4,040 3,304 380 301 55 675 1,444 937 985 1,440 25 4,258 3,412 483 302 61 631 1,461 1,147 1,019 1,518 Oct. 2 3,991 3,022 711 218 40 728 1,206 1,051 1,005 852 9 3,832 2,911 619 242 61 585 1,313 970 963 1,166 16 2,923 2,313 401 162 47 546 855 727 796 1,253 23 3,831 3,049 479 255 49 657 1,174 1,060 940 1,509 30. 3,152 2,561 452 92 47 553 885 853 862 850 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commerc ial banks UU..SS.. PPeerriioodd ma t A i t e l u l s r i- W y i e t 1 a h r i n y 1 ea -5 r s y 5 ea -1 r 0 s y O e 1 v a 0 e r r s aa ss GG ee gg tt cc ee oo ii uu ee nn vv ss rr cc tt ii ,, yy -- Period sou A r l c l es Y N C o e it r w y k w E h ls e e r - e C t o i r o p n o s r i a - ot A h l e l r 1973—Sept 3,201 2,958 316 -111 38 799 1973—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 5,468 2,322 1,147 671 1,329 1974—Jan 3,653 3,210 51 262 130 1,324 1974—Jan 4,802 1,747 1,253 658 1,143 Feb 4,081 2,707 537 647 190 1,435 Feb 4,837 1,545 1,501 533 1,257 Mar 2,587 2,149 50 287 102 1,045 Mar 3,817 1,196 952 485 1,185 Apr 1,536 1,577 -121 62 17 719 2,449 600 728 287 833 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 2,487 1,819 228 356 84 1,073 Aug 4,138 988 1,248 548 1,354 Sept 3,060 2,317 334 340 69 1,216 Sept 4,710 1,312 1,247 480 1,671 Week ending— Week ending— 1974—Aug. 7 2,027 1,960 -6 78 -5 934 1974—Aug 7.... 3,704 992 1,087 499 1,126 14 3,300 2,350 344 500 106 1,049 14.... 4,452 1,292 1,427 622 11,,111111 21 2,463 1,661 257 416 129 1,112 21.... 4,513 1,023 1,445 489 11,,555566 28 2,004 1,199 300 405 100 1,102 28.... 3,986 644 1,098 617 1,628 SSeepptt.. 44 3,430 2,663 259 418 90 1,230 Sept. 4. .. 4,082 953 1,195 491 1,443 3,825 3,067 294 385 78 1,064 11... 5,654 2,030 1,454 606 1,563 18'.'.'.'. 3,241 2,508 277 360 96 1,288 18. .. 5,445 1,823 1,377 484 1,761 25.... 2,417 1,782 294 299 42 1,265 25... 4,058 882 1,108 436 1,633 NOTE.—The figures include all securities sold by dealers under repur- i All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, SEPTEMBER 30, 1974 Cou- Amount Cou- Amount Cou- Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon and maturity rate of dollars) and maturity rate of dollars) and maturity rate Federal home loan banks Federal National Mortgage Banks for cooperatives Bonds: Association—Cont. Bonds: 11/25/69 - 11/25/74. 8.00 217 Debentures: 4/1/74- 10/1/74 8.20 5/25/73 -- 11/25/74... 7.05 1,000 5/10/71 - 12/10/74.... 6.10 250 5/1/74- 11/4/74 8.65 1/26/71 -- 2/25/75.... 6.10 250 9/10/71 - 12/10/74.... 6.45 450 6/3/74- 12/2/74 8.90 11/27/72 -2/25/75... 57/8 400 11/10/70 - 3/10/75... 7.55 300 7/1/74 - 1/2/75 9.25 9/21/73 -2/25/75.... 8.20 500 10/12/71 - 3/10/75. .. 6.35 600 8/1/74-2/3/75 9.45 4/12/73 -5/25/75.... 7.15 700 4/12/71 -6/10/75 5.25 500 9/3/74 - 3/3/75 9.85 8/25/70 - 5/26/75... 8.05 265 10/13/70 - 9/10/75. . . 7.50 350 10/1/73 -4/4/77 7.70 2/25/74 -5/27/75.... 6.80 300 3/12/73 -9/10/75 6.80 650 7/27/70 -- 8/25/75. . . 7.95 300 3/10/72 - 12/10/75... 5.70 500 7/25/73 -•8/25/75.... 77/g 500 9/10/73 - 12/10/75.... 8.25 300 Federal intermediate 10/25/73 -8/25/75... 7.15 400 3/11/71 - 3/10/76 5.65 500 credit banks 12/18/70 - 11/25/75.. 6.50 350 6/12/73 - 3/10/76 7.13 400 Bonds : 5/25/73 -- 11/25/75... 7.05 600 6/10/71 -6/10/76 6.70 250 1/2/74- 10/1/74 7.95 5/28/74 -11/25/75. .. 9.10 700 2/10/72-6/10/76 5.85 450 2/4/74 - 11/4/74 8.00 6/21/74- 2/25/76.... 8.70 400 9/10/74-6/10/76 10.00 700 3/4/74- 12/2/74 7.15 8/27/71 -2/25/76.... 7% 300 11/10/71 -9/10/76.... 6.13 300 5/1/72 - 1/2/75 6.05 8/27/73 -2/25/76 8% 300 6/12/72-9/10/76 5.85 500 4/1/74 - 1/2/75 8.15 8/26/74- 2/25/76.... 9.20 600 7/12/71 - 12/10/76.... 7.45 300 5/1/74-2/3/75 8.80 6/22/73 -5/25/76.... 7.20 600 12/11/72- 12/10/76... 6.25 500 6/3/74 -3/3/75 9.00 11/27/73 -5/25/76... 7.45 300 6/10/74-12/10/76. ... 8.45 500 7/1/74-4/1/75 9.25 7/25/73 - 8/25/76.... 7.80 500 2/13/62 - 2/10/77.... 4% 198 8/1/74-5/1/75 9.45 9/25/74 -8/25/76.... 9.55 700 9/11/72 - 3/10/77 6.30 500 9/3/74 -6/2/75 9.80 7/25/74 -11/26/76... 9.55 500 3/11/74 - 3/10/77 7.05 400 1/3/72-7/1/75 5.70 10/25/73 -2/25/77... 7.20 500 12/10/70 - 6/10/77 6.38 250 3/1/73 - 1/5/76 6.65 6/21/74- 5/25/77.... 8.70 500 5/10/71 -6/10/77 6.50 150 7/2/73 - 1/3/77 7.10 6/25/71 -• 5/25/77 6.95 200 12/10/73 -6/10/77 7.20 500 7/1/74-4/4/77 8.90 4/12/73 - 8/25/77.... 7.15 300 9/10/71 -9/12/77 6.88 300 1/2/74- 1/3/78 7.10 2 5 / / 2 2 6 8 / / 7 7 3 4 - -8 1 / 1 2 / 5 2 / 5 7 / 7 7 . 7 .. . .. . 8 6 . % 80 6 3 0 00 0 9 7 / / 1 1 0 0/ / 7 7 3 3 - - 9 1 /1 2/ 2 1 / 2 7 / 7 7 7 7 7 . . 2 8 5 5 5 4 0 0 0 0 11/27/73 - 11/25/77.. 7.45 300 10/1/73 - 12/12/77 7.55 500 Federal land banks 8/26/74 - 11/25/77... 9.15 700 6/10/74-3/10/78 8.45 650 Bonds: 9/25/74 - 2/27/78.... 9.38 400 6/12/73 - 6/12/78 7.15 600 44//2200//7711 -- 1100//2211//7744 5.30 9/21/73 - 5/25/78 7.60 500 3/11/74 -9/11/78 7.15 550 22//2200//7700 -- 11//2200//7755 8^ 8/26/74 - 11/27/78... 9.10 500 10/12/71 - 12/11/78.... 6.75 300 4/23/73 - 1/20/75 7.15 6/21/74 -• 2/26/79 8.65 600 7/10/74- 12/11/78 8.95 300 4/20/65 - 4/21/75 4H 9 5 / / 2 2 5 8 / / 7 7 4 4 - - 2 5/ / 2 2 5 6 / / 7 7 9 9 9 8 . % 45 4 6 0 0 0 0 9 1 / 2 1 / 0 1 / 0 7 / 3 7 3 - 6 -3 /1 /1 1 2 /7 / 9 7 9 7 7 . . 8 2 5 5 3 5 0 0 0 0 7 2 / / 2 1 0 5 / / 7 7 3 2 - - 4 7 / / 2 2 1 1 / / 7 7 5 5 7 5 . . 6 7 5 0 7/25/74 -8/27/79 9.50 500 9/10/74 - 6/11/79 9.80 600 4/22/74-7/21/75 8.30 3/25/70 -- 2/25/80... 7.75 350 6/12/72-9/10/79 6.40 300 7/20/71 - 10/20/75 7.20 2/25/74 -• 2/25/80.... 7.05 300 12/10/71 - 12/10/79.... 6.55 350 1100//2233//7733 -- 1100//2200//7755 7.40 10/15/70 - 10/15/80.. 7.80 200 2/10/72 - 3/10/80 6.88 250 44//2200//7722 -- 11//2200//7766 10/27/71 - 11/27/81. 6.60 200 6/10/74 - 6/10/80 8.50 450 7/22/74 - 1/20/76 9.20 4 5 1 / / 0 1 2 / 2 8 2 / / 5 7 7 / 3 4 7 3 - - • - 5 5 / / 2 1 2 5 1 5 / / 8 / 2 8 4 6 3 /9 .. 3 .. . . 7 8 73 . % / 3 g 0 4 3 1 0 0 8 0 0 5 2 2 1 / / 0 1 1 / 6 6 1 / / / 7 7 7 3 3 3 - - - 9 7 7 / / / 1 3 3 0 1 1 / / / 8 8 8 0 0 0 3 7 5 . . . 1 1 5 8 9 0 400 9 1 4 2 1 / / / 2 2 2 2 1 2 / / / 7 6 7 4 6 3 - - - 4 4 2 / / 2 2 /2 0 0 4 / / 7 7 /7 6 6 6 6 8 5. % % 00 1/16/73 - 10/30/80 4.46 5 7/20/66 - 7/20/76 5H Federal Home Loan 12/11/72 - 12/10/80 6.60 300 1/21/74 - 7/20/76 7.05 Mortgage Corporation 6/29/72- 1/29/81 6.15 156 4/23/73 - 10/20/76 7.15 Bonds: 3/12/73-3/10/81 7.05 350 4/22/74 - 4/20/77 8% 5/29/73 - 8/25/76 7.05 400 4/18/73-4/10/81 6.59 26 7/20/73 -7/20/77 7% 5/11/72 -2/25/77 6.15 350 3/21/73 - 5/1/81 4.50 18 10/20/71 - 10/20/77 6.35 11/19/70- 11/27/95.... 8.60 140 3/21/73-5/1/81 5.77 2 2/20/63 - 2/20/73-78.... 41/s 7/15/71 - 8/26/96 7.75 150 1/21/71 - 6/10/81 7.25 250 5/2/66 - 4/20/78 5K 5/11/72- 5/26/97 7.15 150 9/10/71 -9/10/81 7.25 250 7/20/72 - 7/20/78 6.40 9/10/74-9/10/81 9.70 300 7/22/74 - 7/20/78 9.15 Federal National Mortgage 3/11/74-12/10/81 7.30 250 10/23/73 - 10/19/78 7.35 Association— 7/10/74-3/10/82 8.88 300 2/20/67 - 1/22/79 5.00 Secondary market 6/28/72-5/1/82 5.84 58 1/21/74- 1/22/79 7.10 operations 2/10/71 - 6/10/82 6.65 250 9/15/72-4/23/79 6.85 Discount notes 3,679 9/11/72 - 9/10/82 6.80 200 2/20/74 - 7/23/79 7.15 Capital debentures: 12/10/73 - 12/10/82 7.35 300 10/23/72 - 10/23/79 6.80 4/1/70 - 4/1/75 8.00 200 3/11/71 -6/10/83 6.75 200 1/22/73 - 1/21/80 6.70 9/30/71 - 10/1/96 4.38 248 6/12/73 -6/10/83 7.30 300 7/20/73 - 7/21/80 7% 10/2/72 - 10/1/97 7.40 250 11/10/71 -9/12/83 6.75 250 2/23/71 -4/20/81 6.70 4/12/71 -6/11/84 6.25 200 7/22/74 -7/20/81 9.10 Mortgage-backed bonds: 12/10/71 - 12/10/84 6.90 250 4/20/72 - 4/20/82 6.90 6/1/70 - 6/2/75 8.38 250 3/10/72 - 3/10/92 7.00 200 4/23/73 - 10/20/82 7.30 3/14/73 - 1/15/81 3.58 53 6/12/72-6/10/92 7.05 200 1100//2233//7733 -- 1100//2200//8833 7.30 3/14/73 - 1/15/81 5.48 5 12/11/72 - 12/10/97 7.10 200 6/21/73- 7/1/82 5.85 71 6/21/73 - 7/1/82 5.92 35 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 • NOVEMBER 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 ppeerriioodd Ad- Cash Mem- Deben- Loans Loans vances Invest- and Bonds ber Capital Mort- tures to and Morito ments de- and de- stock gage and cooper- Bonds dis- Bonds gage Bonds mem- posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 1970........ 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971 7,936 2,520 142 7,139 1,789 1.618 17,791 17,701 2,076 1.801 5,669 5,503 7,917 7,063 1972 7,979 2,225 129 6,971 1,548 1 s 756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973—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 2'5 711 2,728 7,130 6,901 10,781 9,838 Nov. . 14,866 3,649 77 15,362 1.545 2,112 23,912 22,404 2,662 2,704 7,029 6,890 10,926 9,838 Dec... 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974—Jan.. . 15,188 2,843 121 14,556 1,692 2,246 24,424 23,131 3,123 2,741 7,163 6,956 11,245 10,048 Feb... 14,904 2,680 116 13,906 1,936 2.294 24,541 23,092 3,211 2,828 7,277 7,029 11,402 10,282 Mar... 14,995 2,779 124 13,906 2,027 2; 306 24,888 23,515 3.143 2,878 7,545 7,162 11,467 10,282 Apr... 16,020 1,615 82 13,902 2,067 2,337 25,264 23,668 2,891 2,810 7,850 7,403 11,878 10,843 May.. 17,103 1,956 96 14,893 2,215 2,376 25,917 25,089 2,694 2,674 8,195 7,585 12,142 10,843 June.. 17,642 2,564 115 16,393 2,158 2,413 26,559 25,232 2,733 2,449 8,479 7,860 12,400 10,843 July.. 18,582 2,578 150 17,390 1,954 2,450 27,304 25.878 3,008 2,477 8,706 8,'212 12,684 11,782 Aug.. 19,653 2,052 80 18,759 1,935 2,495 28,022 26,639 3,026 2,622 8548 8,380 12,941 11,782 Sept.. 20,772 2,681 135 19,512 2,160 2,543 28,641 27,476 3,092 2,835 81931 8,502 13.185 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 FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered 3 G o e b a n l l e i- r- R n e u v e e - HAA1 G l U o o a . v S n t . s , State di s a s t t n a r d t i . c t Other2 Total c E at d i u o - n b R r a o id n a g d d e s s i U ti t e i s l- 4 H in o g u 5 s - V a e a n t i e d s r ' - O p p o t u h s r e e - s i gations auth. 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 197 1 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 197 3 23,970 12,257 10,632 1,022 58 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 1973—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 1,383 243 1,247 766 1,929 356 42 596 247 687 Dec.. 2,089 919 995 173 450 1,022 616 1,954 372 165 487 344 582 1974--Jan.r. 2,196 1,402 794 208 825 1.163 2,129 595 36 372 '56 1,070 Feb.r. 1,933 1,155 778 473 523 937 1,869 449 53 611 39 717 Mar.f 1,998 1,170 600 227 344 783 871 1,887 366 258 355 241 667 Apr.r. 2,370 1,703 667 360 855 1,155 2,333 508 9 594 178 1,044 Mayr. 2,226 1,147 1,080 443 1,025 759 2,170 394 108 689 7 972 June r. 1,917 1,016 668 234 582 477 858 1,823 202 62 557 265 737 July.. 1,032 547 485 455 156 421 1,028 302 56 152 518 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 4 Water, sewer, and other utilities. by contract requiring the Housing Assistance Administration to make 5 Includes urban redevelopment loans. annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. NOTE.—Security Industries Assn. data; par amounts of long-term issues 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser based on date of sale unless otherwise indicated. and payment to issuer, which occurs after date of sale. Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . . 2 a G g U e o n . v S c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 a l Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d l y 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—July. 7,643 490 2,471 1,992 60 2,631 1,870 857 1,013 226 536 Aug.. 8,019 3,097 1,600 1,474 42 1,806 1,382 792 590 94 330 Sept.. 8,091 2,432 2,100 1,630 15 1,915 1,366 684 682 119 430 Oct.. 8,924 485 2,612 2,232 196 3,398 2,358 1,805 553 355 685 Nov.. 12,553 4,521 2,200 2,224 45 3,563 2,257 1,669 589 637 668 Dec....... 6,635 148 1,032 1,966 251 3,238 2,469 1,552 917 196 573 1974—Jan. 6 ; 3,341 2,908 2,115 794 152 280 Feb.. 2,690 2,104 1,683 421 268 318 Mar.r. 3,216 2,457 2,020 437 398 361 Apr.r., 3,067 2,265 1,594 671 356 446 May r., 3,151 2,943 2,350 593 65 142 Juner., 2,968 2,440 1,936 502 113 415 July. .. 3,224 2,565 2,086 478 181 478 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r la 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 1973....... 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1973—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. 6 867 29 136 124 89 1,192 249 142 4 485 27 Feb.' 354 36 54 143 5 536 293 372 25 783 87 Mar.r 480 161 52 71 76 850 449 310 21 690 58 Apr.r 1.193 9 238 56 6 446 685 289 5 95 47 May r 839 15 330 71 44 837 75 660 3 235 44 June1" 420 44 317 139 5 16 859 288 352 489 39 July. 961 40 228 93 58 317 283 240 177 761 65 1 Gross proceeds are derived by multiplying principal amounts or 6 Beginning Jan. 1974 noncorporate figures are no longer published by number of units by offering price. the SEC. 2 Includes guaranteed issues. 3 Issues not guaranteed. NOTE.—Securities and Exchange Commission estimates of new issues 4 See NOTE to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 SECURITY ISSUES • NOVEMBER 1974 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 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—II 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—1 8,973 2,031 6,942 6,810 1,442 5,367 2,163 588 1,575 II 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 PPeerriioodd facturing and other 2 tation ^ utility cation and financial 1 & B o n n o d t s e s Stocks & B o n n o d t s e s Stocks & B o n n o d te s s Stocks & B o n n o d t s e s Stocks & B o n n o d t s e s Stocks & B o n n o d t s e 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 II I 165 450 108 247 414 -44 1,217 557 752 77 284 154 I V -131 147 -162 460 176 -13 1,068 1,506 1,051 575 1,225 431 1974^1 906 324 -11 363 -37 -35 2,172 827 675 76 1,662 20 II 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 offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- NOTE.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) YYeeaarr MMoonntthh Sales l Redemp- Net Total 2 Cash Other Sales i 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—Sept... 330 395 -65 52,322 4,641 47,681 1963 2,460 1,504 952 25,214 1,341 23,873 Oct.. . 305 559 -254 51,952 4,168 47,784 1964 33,,440044 1,875 1,528 29,116 11,,332299 2277,,778877 Nov... 502 542 -40 45,814 4,126 41,688 Dec... 349 392 -43 4466,,551188 44,,000022 4422,,551166 1965 4,359 1,962 2,395 35,220 1.803 33,417 1966 4,671 2,005 2,665 34,829 2,971 31,858 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1967 44,,667700 2,745 1,927 4444,,770011 22,,556666 42,135 Feb... 215 303 -88 45.958 4,447 41,511 Mar... 297 346 -49 44,423 4,406 40,017 1968 6,820 3,841 2,979 52,677 3,187 49,490 Apr... 262 327 -65 42,679 4,426 38,253 1969 6,717 3,661 3,056 48,291 3,846 44,445 May.. 323 320 3 41,015 4,389 36,626 1970 44,,662244 22,,998877 11,,663377 4477,,661188 33,,664499 4433,,996699 June.. 337 276 61 40,040 4,461 35,579 July. . 442 352 90 37,669 4,609 33,060 1971 5,145 4,751 774 56,694 3,163 53,531 Aug... 446 339 127 35,106 4,953 30,153 1972 4,892 6,563 -1,671 59,831 3,035 56,796 SSeepptt.. .. 499 292 207 31,985 5,078 26,907 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

NOVEMBER 1974 • BUSINESS FINANCE A 43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a f o x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r n b o u d f t i it s e s - d co c a n a t l s p l i u o o i n t w m a - l p - Quarter P b t e r a f o x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U r p i r n b o d u f t i it s e s - d co c a n t a l i s p l o o u n it w m a - l p ances 1 ances 1 1968 87.6 39.9 47.8 23.6 24.2 46.8 1972—III... 100.2 41.8 58.4 27.8 30.6 66.7 1969 84.9 40.1 44.8 24.3 20.5 51.9 IV... 108.2 45.2 63.1 28.2 34.9 68.2 1970 74.0 34.8 39.3 24.7 14.6 56.0 1971 83.6 37.5 46.1 25.0 21.1 60.4 1973—1 120.4 48.9 71.5 28.7 42.8 69.2 1972 99.2 41.5 57.7 27.3 30.3 66.3 II.... 124.9 50.9 74.0 29.1 44.9 70.8 1973 122.7 49.8 72.9 29.6 43.3 71.2 III... 122.7 49.9 72.9 29.8 43.1 71.6 IV... 122.7 49.5 73.2 30.7 42.5 73.1 1974—1. 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 I Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities NNNeeettt Notes and accts. Notes and accts. EEEnnnddd ooofff pppeeerrriiioooddd wwwooorrrkkkiiinnnggg UU..SS.. receivable payable AAccccrruueedd cccaaapppiiitttaaalll TToottaall CCaasshh ss GG eecc oo uu vv rr tt ii ,, -- II tt nn oo vv rr ee iiee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U ov .S t . , i Other G U o . v S t . . 1 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_I 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 PPeerriioodd TToottaall MMiinniinngg CCoommmmuu-- OOtthheerr ii TT ((SS oo .. tt AA aa .. ll Durable d N ur o a n b - le R ro a a i d l- Air Other Electric and G a o s t her nniiccaattiioonnss AA..RR..)) 1971 888111...222111 111444...111555 111555...888444 222...111666 111...666777 111...888888 111...333888 111222...888666 222...444444 111000...777777 111888...000555 1972 888888...444444 111555...666444 111555...777222 222...444555 111...888000 222...444666 111...444666 111444...444888 222...555222 111111...888999 222000...000777 1973 999999...777444 111999...222555 111888...777666 222...777444 111...999666 222...444111 111...666666 111555...999111 222...777666 111222...888555 222111...444000 1972—1 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 Ill 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—1 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 103.74 1974—1 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill 2 28.02 5.78 5.64 .77 .60 .49 .70 4.49 .86 8.70 113.00 1 Includes trade, service, construction, finance, and insurance. NOTE.—Dept. of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 REAL ESTATE CREDIT • NOVEMBER 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. 451,726 499,758 565,196 619,996 635,137 646,280 663,826 1- to 4-family... 280,175 307,200 345,500 378,382 386,489 392,053 402,315 Multifamily1.,. 58,023 67,367 76,585 83,521 85,394 86,760 88,456 Commercial.... 82,292 92,333 107,673 119,504 123,915 127,228 131,461 Farm.......... 31,236 32,858 35,438 38,589 39,339 40,239 41,594 PRIVATE FINANCIAL INSTITUTIONS. 355,929 394,239 450,371 495,044 505,583 514,110 527,751 1- to 4-family......................... 231,317 253,540 288,169 316,754 322,296 327.146 335,592 Multifamily1........................ . 45,796 52,498 59,293 63.566 64,723 65;555 66,781 Commercial ........................... 68,697 78,345 92,387 103,429 107,078 109,891 113,524 Farm 10,119 9,856 10,522 11,295 11,486 11,518 11,854 Commercial banks2. 73,275 82,515 99,314 114,788 119,068 121,668 126,468 1- to 4-family.... 42,329 48,020 57,004 65,484 67,998 69,351 72,087 Multifamily1.... 3,311 3,984 5,778 6,745 6,932 7,178 7,462 Commercial. 23,284 26,306 31,751 37,181 38,696 39,664 41,228 Farm........... 4,351 4,205 4,781 5,378 5,442 5,475 5,691 Mutual savings banks. 57,948 61,978 67,556 72,034 73,231 73,957 74,264 1- to 4-family...... 37,342 38,641 41,650 43,738 44,247 44,462 44,426 Multifamily1.. . . . . 12,594 14,386 15,490 16.567 16,843 17,011 17,081 Commercial....... 7,893 8,901 10,354 11,670 12,084 12,425 12,698 Farm............. 119 50 62 59 57 59 59 Savings and loan associations. 150,331 174,250 206,182 229,182 232,104 236,514 243,791 1- to 4-family 124,970 142,275 167,049 185,706 188,051 191,529 197,344 Multifamily1 13,830 17,355 20,783 22,391 22,561 22,800 23,380 Commercial.............. 11,531 14,620 18,350 21,085 21,492 22,185 23,087 Life insurance companies. 74,375 75,496 77,319 79,040 81,180 81.971 83.228 1- to 4-family......... 26,676 24,604 22,466 21,826 22,000 21,804 21,755 Multifamily1......... 16,061 16,773 17,242 17,863 18,387 18,566 18,858 Commercial.......... 25,989 28,518 31,932 33.493 34,806 35,617 36,511 Farm................ 5,649 5,601 5,679 5,858 5,987 5,984 6,104 FEDERAL AND RELATED AGENCIES.. 32.992 39,357 45,790 53,008 55,664 58,430 62,535 1- to 4-family.......................... 21.993 26,453 30,147 33,725 35,454 37,168 39.784 Multifamily1.......................... 3,359 4,555 6,086 8,171 8,489 8,923 9:643 Commercial. 16 11 Farm .............. 7,624 8,338 9,557 11,112 11,721 12,339 13,108 Government National Mortgage Association 5,222 5,323 5,113 4,429 4,029 3,604 3,618 1- to 4-family. 902 2,770 2,490 1,462 1,330 1,189 1,194 Multifamily1...... 304 2,542 2,623 2,967 2,699 2,415 2.424 Commercial 16 11 Farmers Home Administration. 767 819 837 1,000 1,200 .300 1,400 1- to 4-family 330 398 387 480 550 596 642 Farm 437 421 450 520 650 704 758 Federal Housing and Veterans Administrations 3,505 3,389 3,338 3,446 3,476 3,514 3,619 1- to 4-family 2,771 2,517 2,199 2,046 2,013 1,964 1 .980 Multifamily1 734 872 1,139 1,400 1,463 1,550 1 639 Federal National Mortgage Association.. 15,502 17,791 19,791 22,831 24,175 24,875 26,559 1- to 4-family. 15,181 16,681 17,697 19,479 20,370 20,516 21,691 Multifamily1 321 1,110 2,094 3,352 3,805 4,359 4,868 Federal land banks (farm only) 7,187 7,917 9,107 10,592 11,071 11,635 12,350 Federal Home Loan Mortgage Corporation. 357 964 1,789 2,423 2,604 2,637 3,191 1- to 4-family 357 934 1,754 2,294 2,446 2,472 2,951 Multifamily1 30 35 129 158 165 240 GNMA Pools.... 452 3,154 5,815 8,287 9,109 10,865 11,798 1- to 4-family. 452 3,153 5,620 7,964 8,745 10,431 11,326 Multifamily1., 195 323 364 434 472 INDIVIDUALS AND OTHERS 3. 62,805 66,162 69,035 71,944 73,890 73,740 73,540 1- to 4-family 26,865 27,207 27,184 27,903 28,739 27,739 26,939 Multifamily1 8,868 10,314 11,206 11,784 12,182 12,282 12,032 Commercial. 13,579 13,977 15,286 16,075 16,837 17,337 17,937 Farm. 13,493 14,664 15,359 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

NOVEMBER 1974 • REAL ESTATE CREDIT A 45 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION- SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage End of holdings transactions commitments holdings transactions commitments period (during period) (during period) FHA- VA- Pur- Made Out- FHA Con- Pur- Made Out- Total i m- guar- chases Sales during stand- Total VA ven- chases Sales during standsured anteed period ing tional period ing 1970 ... 15,492 11,063 4,429 5,079 20 8,047 5,203 325 325 325 1971.. 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 i47 778 64 i82 1972... ... 19,791 14,624 5,112 3,699 211 8,797 8,124 1.789 1,503 286 1,298 408 1,606 198 1973... 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 -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 40 200 8,690 2,565 1,746 819 46 45 207 Dec... 24,175 16,852 6,352 410 ' ° ° 158 7,889 2,604 1.743 861 50 2 43 186 1974- Jan.. . 24,424 17,008 6,348 350 110 6,715 2,621 1,736 885 34 8 26 161 Feb... 24,529 17,050 6,336 242 489 6,768 2,625 1.730 895 21 6 49 185 Mar... 24,875 17,315 6,340 462 1 1,646 7,913 2,638 1,724 914 29 2 595 748 Apr... 25,263 17,450 6,503 526 1 2,154 9,292 2,722 1.756 967 101 400 1,037 May.. 25,917 17,725 6,794 821 1,145 9,475 2,986 1,827 1,159 281 1,486 2,221 June. . 26,559 17,966 7,079 770 537 9,019 3.191 1,877 1,314 222 628 2,598 July. . 27,304 18.250 7,384 886 1.175 9,044 3^309 1,883 1,426 129 1,127 3,583 Aug... 28,022 18,526 7,704 868 2 i;202 9,115 3;451 1,886 1,565 155 81 3.500 Sept.. 28,641 18.758 7.994 760 997 9,043 3.713 1,896 1,817 273 69 3; 278 i Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC NOTE.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA's free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages - _ .. ™ _ - " - - - - -- - " - — FHA- Terms1 Yields (per cent) in insured pprriimmaarryy market loans—Yield Period in private Contract Fees and Loan/price Purchase Loan secondary rate (per charges Maturity ratio price (thous. amount market5 cent) (per cent)2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series 3 series 4 1970. 8.27 1.03 25.1 71.7 35.5 25.2 8.44 8.52 9.03 1971............... 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.52 1973 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 1973—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 8.87 1.32 26.4 75.3 40.2 29.5 9.09 9.60 10.30 Sept.23 8.99 1.30 26.3 74.6 43. 1 31.5 9.20 9.80 10.38 1 Weighted averages based on probability sample survey of character- (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in- end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed 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 • NOVEMBER 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 June 3 June 17 July 1 July 15 July 29 Aug. 12 Aug. 26 Sept. 9 Sept. 23 Oct. 7 Oct. 21 Nov. 4 Amounts (millions of dollars): Govt.-underwritten loans Offered i 85.1 38.5 271.7 379.5 151.6 207.9 309.6 176.1 57.2 46.6 34.5 47.8 Accepted 71.5 31.5 103.0 193.5 73.4 97.7 93.0 98.6 38.2 29.7 26.0 24.7 Conventional loans Offered i 26.1 21.6 39.7 60.4 36.8 45.8 59.0 46.5 22.1 26.1 14.1 20.4 Accepted 20.5 11.2 23.6 29.9 18.1 19.4 24.9 30.9 19.0 23.3 12.2 12.1 Average yield (per cent) on shortterm commitments 2 Govt.-underwritten loans 9.54 9.54 9.65 9.90 9.98 10.12 10.38 10.59 10.56 10.32 10.11 9.93 Conventional loans 9.70 9.69 9.76 9.90 10.02 10.16 10.42 10.71 10.66 10.46 10.27 10.11 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, June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Holder 1971 1972 1973 1973 1973 1974 1974 All holders 120.8 131.1 133.6 133.8 135.0 136.7 137.8 FHA 81.3 86.4 86.4 85.6 85.0 85.0 84.9 VA 39.5 44.7 47.2 48.2 50.0 51.7 52.9 Commercial banks 11.3 11.7 11.7 11.7 11.5 '11.1 10.7 FHA 8.3 8.5 8.5 8.4 8.2 r7.8 7.4 VA 3.0 3.2 3.2 3.3 3.3 3.3 3.4 Mutual savings banks., 28.2 28.6 28.7 28.6 28.4 >•28.2 27.9 FHA 16.1 16.0 15.8 15.7 15.5 r15.3 15.1 VA 12.1 12.6 12.9 12.9 12.9 r12.9 12.8 Savings and loan assns. 24.3 28.9 V FH A A 1 1 3 0 . . 7 6 1 13 5 . . 5 4 | 29.8 } 30.1 1 29.7 } 29.8 ) ) 29.7 Life insurance cos 15.8 14.7 14.0 13.7 13.6 13.3 13.1 FHA 10.8 10.0 9.5 9.3 9.2 9.0 8.8 VA 5.0 4.7 4.5 4.4 4.4 4.3 4.3 Others 41.2 47.2 49.4 50.0 52.1 '54.3 56.4 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 TToottaall aammoouunntt PPeerriioodd N o N off uu ll mm ooaa bb nn ee ss rr (( cc mm oo (( ii mm dd ll oo ll mm ii ll oo llaa ii nn tt rr ss tt ss ee )) dd oo ff ( o t f a h m L o d u o o o s l a u l a n a n n r t d s) s ( C p in o e r n r te a t r c t r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L e o r r - o a v t a c a i e n o l n - u t e ) C (p a t p e i r o it n a c l e r i n z a t a t ) e - co D r v a e e t r b io a t ge P co e n r s c t e a n n t t 1970 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 1971 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1972, 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1973 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1973--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 July 230 415.7 1,807 8.72 24/3 74.0 9.4 1.27 10.0 Aug 255 541.9 2,125 8.77 23/5 73.6 9.2 1.26 10.1 Sept 176 351.5 1,997 8.94 22/6 73.7 9.3 1.23 10.3 Oct 161 203.3 1,263 9.09 22/6 73.6 9.4 1.24 10.3 Nov 95 313.5 3,300 9.17 22/2 74.3 9.7 1.25 10.4 Dec 55 152.8 2,778 9.18 23/3 74.8 9.9 1.27 10.3 See NOTE on p. A-45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • CONSUMER CREDIT A 47 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment Total Other Home Charge accounts Auto- consumer improve- Personal Single- Total mobile goods ment loans Total payment paper paper loans1 loans Retail Credit outlets cards 2 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5,936 1,437 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 6,163 1,805 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 6,397 1,953 157,564 127,332 44.129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 180,486 147,437 51.130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 173,035 142,093 50,557 44,019 7,120 40,397 30,942 13,088 6,229 2,106 174,840 143,610 51,092 44,632 7,235 40,651 31,230 13,145 6,554 2,036 176,969 145,400 51,371 45,592 7,321 41,116 31,569 13,161 6,761 2,024 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 178,686 146,575 50,617 47,303 7,303 41,352 32,111 13,117 6,894 1,981 177,522 145,927 50,386 46,781 7,343 41,417 31,595 13,159 6,136 1,882 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 6,097 1,842 179,495 147,047 50,606 47,017 7,573 41,851 32,448 13,315 6,556 1,878 181,680 148,852 51,076 47,588 7,786 42,402 32,828 13,331 6,948 1,999 183,425 150,615 51,641 48,099 7,930 42,945 32,810 13,311 7,002 2,104 184,805 152,142 52,082 48,592 8,068 43,400 32,663 13,192 6,936 2,204 187,369 154,472 52,772 49,322 8,214 44,164 32,897 13,202 6,983 2,282 187,906 155,139 52,848 49,664 8,252 44,375 32,767 13,131 6,876 2,277 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 Total Automobile paper Other consumer goods paper Home Personal loans improve- Total ment Purchased Direct Mobile Credit Other loans Check Other homes cards credit 35,652 28,962 10,209 5,659 4,166 2,571 6,357 38,265 31,319 11,024 5,956 4,681 2,647 7,011 40,630 33,152 10,972 6,232 5,469 2,731 7,748 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 79.526 67,918 18,886 12,160 6,956 5,909 5,978 3,903 2,027 12,099 80,281 68,627 19,123 12,262 7,106 5,991 6,012 3,950 2,060 12,123 80,830 69,161 19,198 12,306 7,208 6,171 6,035 3,979 2,085 12,179 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 81,081 69,429 18,885 12,113 7,237 6,826 6,041 3,944 2,167 12,216 80,909 69,246 18,770 12,028 7,285 6,770 6,063 3,937 2,173 12,220 80,918 69,232 18,775 11,985 7,333 6,667 6,082 3,958 2,169 12,263 81,750 69,944 18,896 12,039 7,399 6,761 6,208 4,028 2,180 12,433 82.527 70,721 19,037 12,100 7,491 6,887 6,323 4,135 2,199 12,549 83,417 71,615 19,220 12,169 7,564 7,076 6,420 4,224 2,230 12,712 84,078 72,384 19,377 12,250 7,623 7,222 6,484 4,316 2,266 12,846 84,982 73,302 19,511 12,344 7,681 7,491 6,541 4,409 2,312 13,013 85,096 73,455 19,389 12,314 7,706 7,638 6,527 4,445 2,348 13,088 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 • NOVEMBER 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 lenders1 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—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 Sept. 38,921 12,345 3,573 4,662 1,073 17,268 25,085 21,792 3,293 17,678 298 17,380 i Savings and loan associations and mutual savings banks. See also NOTE to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies Month New Mobile Other Personal Credit- Automobiles Other automo- homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1972—Aug.. 10.02 10.71 12.47 12.72 17.25 11.85 16.62 Sept.. 10.02 10.67 12.47 12.70 17.25 11.88 16.71 12.41 19.15 21.05 Oct... 10.01 10.66 12.38 12.70 17.23 11.86 16.67 Nov.. 10.02 10.85 12.44 12.63 17.23 11.89 16.78 12.41 18.90 21.22 Dec.. 10.01 10.69 12.55 12.77 17.24 11.92 16.87 1973—Jan... 10.01 10.54 12.46 12.65 17.13 11.89 16.08 12.51 19.04 21.00 Feb.. 10.05 10.76 12.51 12.76 17.16 11.86 16.20 Mar.. 10.04 10.67 12.48 12.71 17.19 11.85 16.32 12.54 18.92 20.79 Apr.. 10.04 10.64 12.50 12.74 17.19 11.88 16.44 May. 10.05 10.84 12.48 12.78 17.22 11.91 16.52 12.73 18.88 20.76 June. 10.08 10.57 12.57 12.78 17.24 11.94 16.61 July.. 10.10 10.84 12.51 12.75 17.21 12.02 16.75 12.77 18.93 20.55 Aug.. 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept.. 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 Oct... 10.53 10.98 12.80 13.02 17.23 12.34 17.11 Nov.. 10.49 11.19 12.75 12.94 17.23 12.40 17.21 13.12 18.77 20.65 Dec.. 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan... 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 Feb.. 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar.. 10.50 10.92 12.82 13.04 17.23 12.29 16.69 13.15 18.69 20.57 Apr.. 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May. 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.07 18.90 20.47 June. 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July.. 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.21 19.26 20.59 Aug.. 11.15 11.71 13.10 13.45 '17.21 12.67 17.32 Sept.. 11.31 11.72 13.20 13.41 17.17 12.84 17.61 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

NOVEMBER 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 paper consumer improve- loans banks companies financial outlets goods paper ment loans lenders Extensions 196 6 82,832 27,192 26,329 2,223 27,088 30,073 25,897 10,368 16,494 196 7 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 196 8 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 196 9 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 197 0 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 197 1 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 197 2 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 197 3 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1973—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 Sept. 14,089 3,835 5,935 302 4,017 6,050 3,408 2,079 2,552 Repayments 196 6 77,480 25,619 24,080 2,118 25,663 27,716 24,952 9,342 15,470 196 7 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 196 8 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 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 20,742 197 1 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 197 2 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 197 3 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1973—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 Sept... 13,412 3,604 5,700 279 3,829 5,808 3,371 1,723 2.510 Net change 196 6 5,352 1,573 2,249 105 1,425 2,357 945 1,026 1,024 196 7 3,183 -214 1,657 167 1,573 1,833 -220 901 669 196 8 8,317 3,152 2,237 231 2,697 4,784 1,498 1,501 534 196 9 9,360 2,579 3,687 374 2,720 4,485 1,772 2,005 1,098 197 0 4,959 -343 3,152 457 1,693 2,977 -168 1,366 784 197 1 9,231 3,480 2,888 343 2,520 5,842 1,205 1,933 251 197 2 16,037 5,465 5,727 788 4,057 8,543 3,205 2,490 1,799 197 3 20,105 7,001 7,450 1,151 4,503 9,712 5,155 3,056 2,182 1973—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 Sept. 677 231 235 23 188 242 37 356 42 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. • NOVEMBER 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro- aver- Grouping p ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct Total index. 100.0 125.6 127.0 127.5 126.5 125.4 124.6 124.7 124.9 125.7 125.8 125.5 125.2 Products, total 62.21 123.4 124.3 125.3 124.0 122.9 122.4 122.6 122.7 123.8 124.0 124.0 123.3 Final products 48.95 121.3 122.7 123.7 122.6 121.2 120.6 121.0 120.8 122.4 122.6 122. 122.0 Consumer goods.... 28.53 131.7 132.6 133.5 131.3 129.2 128.3; 128.5 128.5! 129.7 130.2 130.0 129.5 Equipment 20.42 106.7 108.9 110.1 110.1 109.8 109.9 110. 110.1 112.2 112.0 113.0 111.6 Intermediate products. 13.26 131 130.6 131.1 129.1 129.2 129.1 128.2 129.4 129.2 128.9 127.8 127.8 Materials 37.79 129.3 131.1 131.5 130.7 129.7 128.3 128.8 128.7 129.1 128.8 128.0 128.4 Consumer goods Durable consumer goods 7.86 139.0 137.3 138.5 134.6 128.2 126.4 128.5 130.9 132.8 133.5 131.6 131.2 Automotive products. 2.84 136.8 131.4 133.7 120.6 108.0 106.6 108.0 113.8 116.1 117.3 113.5 115.4 Autos 1.87 125.4 122.5 124.8 106.2 90.0 86.4 86.3 97.7 100.3 99.6 101.5 103.1 Auto parts and allied goods. .97 158.9 148.4 150.9 147.8 142.6 145.5 149.8 144.7 146.5 151.3 136.9 138.9 Home goods 5.02 140.3 140.9 141.2 142.5 139.6 137.5 140. 140.6 142.3 142.7 141.8 139.9 Appliances, TV, and radios. 1.41 144.8 143.4 140.4 147.9 138.4 131.9 135.8 135.2 137.7 141. 139.3 134.5 Appliances and A/C... .92 156.9 159.3 154.7 172.2 153.9 148.2 150.0 148.6 152.6 155.3 151.7 149. TV and home audio.... .49 Carpeting and furniture 1.08 150.0 153.9 152.7 150.1 153.5 153.3 154.5 158.2 157.4 157.2 155.3 157.1 Misc. home goods 2.53 133.6 134.1 136.8 136.3 134.4 134.2 136.3 136.0 138.3 137.4 137.3 135.8 Nondurable consumer goods 20.67 129.0 130.8 131.5 130.2 129.5 129.1 128.7 127.6 128.5 129.0 129.4 128.9 Clothing 4.32 116.0 116.8 117.3 120.3 116.3 114.5 112.0 106.2 107.0 108.9 108.6 106.4 Consumer staples 16.34 132.4 134.5 135.2 132.8 133.0 133.0 133.1 133.2 134.2 134.3 134.9 134.8 Consumer foods and tobacco. 8.37 122.2 123.3 126.5 125.0 126.9 125.9 125.7 123.9 124.7 124.7 125.5 124.9 Nonfood staples 7.98 143. 146.2 144.3 141 139.4 140.4 140.8 143.1 144.3 144.4 144.7 145.1 Consumer chemical products. 2.64 153.3 156.2 154.9 156.7 157.8 159.0 160.3 159.7 157.5 156 154.6 155.0 Consumer paper products.... 1.91 121.3 122.5 123.6 120.5 119.4 119.9 119.1 119.4 124.7 123.9 124.4 126.0 Consumer fuel and lighting.. 3.43 147.5 151.9 147.8 140.7 136.7 137.4 138.2 143.7 145.1 146.0 148.4 148.2 Residential utilities 2.25 156.8 161.9 158.0 149.8 145.6 148.6 149.0 151.6 153.2 155.3 157.8 158.1 Equipment Business equipment 12.74 122.6 126.2 127 126.9 126.8 127.3 127.6 127.9 130.2 130.2 131.3 128.8 Industrial equipment 6.77 120. 124.5 125.6 124.9 125.3 126.6 126.8 127.6 129.6 129.0 130.3 129.6 Building and mining equip., 1.45 120.4 124.7 126.0 126.0 128.5 130.3 131.3 133.5 135.0 137.4 136.2 136.5 Manufacturing equipment., 3.85 113.0 117.3 118.2 118.5 119 120.6 121 122. 124. 121.9 124.9 123.1 Power equipment 1.47 138.5 143.0 144.6 140.3 138.0 138.7 137.3 136.6 138.4 139.0 138.4 139.6 Commercial, transit, farm eq.. 5.97 125.5 128.1 130.3 129.2 128.5 128.2 128.7 128.2 130.9 131.5 132.5 127.6 Commercial equipment.... 3.30 135.0 140.1 141.3 139.3 139. 139.8 140.8 140.4 141.5 142.7 143.5 134.0 Transit equipment 2.00 109.8 109.8 111.4 11 109.5 109.3 109.4 106.7 110.2 110.4 111.4 109.3 Farm equipment .67 125. 123.5 132.4 133.4 129.2 126.0 126.1 131.2 140.2 140.6 141.4 150.5 Defense and space equipment. 7.68 80.2 80.0 80.9 81.9 81.4 80.9 81.0 80.6 82.2 81.7 82.6 83.1 Military products 5.15 80.3 79.3 80.0 81 80.6 80.2 80.5 79.9 81.2 79.7 81.4 82.2 Intermediate products Construction products 5.93 134.2 134.3 133.7 131.1 133.0 131.3 129.6 130.8 130.8 129.6 128.2 127.0 Misc. intermediate products. 7.34 128.6 127.5 129.0 127.4 126.3 127;4 127.5 128.2 127.9 128.4 127.5 128.6 Materials Durable goods materials.... 20.91 130.1 132.2 133.0 132.7 129.8 127.3 127.2 127.3 128.3 127.5 125 128.0 Consumer durable parts. 4.75 127.8 128.2 128.4 121.0 113.0 109.3 110.6 112.5 114.7 114.1 117.2 117.4 Equipment parts 5.41 119.3 122.7 125.8 125.3 123 122.6 121.6 120.1 122.5 122.1 120.6 123.5 Durable materials nec... 10.75 136.5 139.0 138.7 141 140.0 137.6 137.5 137.5 137.2 136.2 132.3 134.9 Nondurable goods materials 13.99 129.1 130.1 130.7 129.2 131.1 131.1 131.9 131.9 130.9 131.3 131.1 130.2 Textile, paper, and chem. mat.. 8.58 139.8 141.4 142.4 140. 143.4 141.7 143.1 143.9 143.3 143.6 143.6 142.4 Nondurable materials n.e.c 5.41 112.2 112.3 112.1 111.9 111.7 114.3 114.7 112.7 111.4 111.9 111.3 110.9 Fuel and power, industrial 2.89 123.9 126.9 124.9 123.1 121.5 122.5 122.6 123.2 124.7 126.3 128.0 123.6 Supplementary groups Home goods and clothing., 9.34 129.0 129.8 130.2 132.4 128.8 126.9 127.0 124.6 126.0 127.1 126.4 124.3 Containers 1.82 139.9 141.2 142.3 141.0 148.4 144 151.4 147.0 141.5 141 142 140.4 Gross value of products in market structure (In billions of 1963 dollars) Products, total 286.3 449. 452.6 456.9 449.1 445.4 442.5 443.9 445.4 449.5 449.7 448.1 446.4 Final products 221.4 346. 349.7 353.3 346.9 342.5 339.9 342.3 342.9 347.2 347.7 346.6 345.0 Consumer goods 156.3 239.7 241.7 243.6 237.8 233.6 230.6 232.7 233.8 235.9 236.6 235.0 234.9 Equipment 65.3 106.4 108.0 109.5 109.0 108.9 109.1 109.4 109.0 111 .2 111.2 111.6 110. Intermediate products 64.9 103.7 103.1 103.6 102.5 103.1 102.6 101.9 102.5 102.2 102.0 101.2 101.3 For NOTE see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro- Grouping p ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.6 Manufacturing 88.55 125.2 126.4 127.4 126.4 125.3 124.5 124.6 124.8 125.7 125.6 125.2 125.1 125.4 124.5 Durable 52.33 122.1 123.5 124.3 123.1 121.1 119.4 120.4 120.7 122.1 122.1 121.6 121.7 122.2 121.5 Nondurable 36.22 129.6 130.4 131.3 131.2 131.4 131.5 130.9 130.4 130.9 130.8 130.8 130.0 130.0 128.8 Mining and utilities 11.45 128.9 131.5 130.6 126.9 125.4 126.9 127.3 127.8 128.0 128.1 128.9 128.3 128.9 128.4 Mining 6.37 110.2 111.9 111.3 110.4 109.9 111.7 112.2 111.3 111.0 110.2 110.2 108.0 109.6 108.9 Utilities 5.08 152.3 156.2 154.6 147.6 144.9 146.1 146.5 148.7 149.2 150.6 152.4 153.8 153.1 153.0 Durable manufactures Primary and fabricated metals 12.55 128.8 130.6 131.0 130.5 130.4 127.6 128.2 127.5 128.1 .128.4 126.9 127.2 128.1 126.8 Primary metals 6.61 127.1 128.7 128.9 130.7 129.5 125.0 125.3 124.0 124.6 124.7 123.2 123.2 124.7 125.3 Iron and steel, subtotal 4.23 121.6 123.6 124.2 127.7 125.5 119.4 119.6 116.4 118.0 118.5 119.9 120.1 119.1 121.0 Fabricated metal products 5.94 130.7 132.4 133.1 130.0 131.4 130.6 131.6 131.3 131.9 132.5 131.1 131.5 131.9 128.6 Machinery and allied goods 32.44 117.3 118.9 119.9 118.6 115.2 113.8 114.8 115.5 117.5 117.7 117.3 117.7 118.5 118.7 Machinery 17.39 125.9 129.2 130.4 130.9 128.6 127.2 128.4 128.2 129.7 130.4 129.9 130.1 131.2 130.5 Nonelectrical machinery 9.17 125.1 130.0 130.3 130.2 129.4 128.1 129.8 130.7 131.9 131.7 131.1 136.4 136.7 136.9 Electrical machinery 8.22 126.8 128.5 130.5 131.6 127.7 126.2 126.8 125.3 127.4 129.0 128.4 122.9 125.2 123.4 Transportation equipment 9.29 109.2 108.8 109.8 103.0 95.7 93.9 95.0 97.8 100.6 99.4 98.7 99.9 100.8 103.3 Motor vehicles and parts 4.56 138.1 136.4 137.8 124.6 112.7 109.2 110.2 116.4 119.6 116.9 117.3 117.8 118.5 123.1 Aerospace and misc. trans, eq 4.73 81.4 82.3 82.9 82.2 79.3 79.3 80.3 80.0 82.4 82.6 80.9 82.6 83.8 84.3 Instruments 2.07 138.4 141.0 142.6 142.7 143.0 142.8 142.8 143.8 146.1 147.5 146.7 146.7 144.6 142.1 Ordnance, private and Govt. 3.69 85.4 83.8 84.3 86.1 85.2 84.2 84.9 84.3 86.1 86.4 87.2 88.1 88.6 88.5 Lumber, clay, and glass 4.44 129.5 129.7 129.3 127.8 129.7 127.4 128.1 128.9 128.0 126.4 125.5 123.4 121.6 120.1 Lumber and products 1.65 128.9 127.4 127.3 126.3 126.1 127.1 126.1 126.8 126.8 125.6 121.6 121.5 120.5 Clay, glass, and stone products., 2.79 129.9 131.2 130.4 128.7 131.8 127.6 129.3 130.3 128.7 126.9 127.7 124.6 122.3 Furniture and miscellaneous 2.90 135.2 136.1 136.4 135.3 133.4 135.2 136.8 136.8 138.9 138.5 139.7 138.4 138.2 132.3 Furniture and fixtures 1.38 126.3 128.8 127.9 124.9 124.2 125.4 126.8 128.8 129.7 131.1 131.6 130.5 129.9 Miscellaneous manufactures 1.52 143.3 142.9 144.3 144.5 141.8 144.2 145.8 144.1 147.3 145.3 147.1 145.5 145.6 Nondurable manufactures Textiles, apparel, and leather 6.90 114.7 116.8 116.7 118.8 116.2 115.3 112.4 109.3 109.8 108.5 108.1 106.8 106.2 104.8 Textile mill products 2.69 127.1 130.2 129.4 130.9 128.4 127.6 125.0 123.4 124.0 125.1 125.3 124.2 121.7 Apparel products 33..3333 112.9 114.9 115.3 118.5 116.4 113.6 110.0 105 8 105 0 102.1 102.7 101.5 Leather and products ..8888 83.6 83.1 82.9 82.9 77.6 83.7 83.0 79.5 83 !9 81.6 75.7 73.4 80.0 Paper and printing 7.92 122.1 121.3 121.9 121.2 121.7 122.2 122.5 121.2 121.3 122.3 122.4 120.9 121.8 119.6 Paper and products 3.18 135.4 135.3 136.2 136.7 138.7 137.6 140.2 135.4 135.1 136.7 136.1 132.2 135.0 Printing and publishing 4.74 113.2 112.1 112.3 110.8 110.4 111.9 110.7 111.7 111.9 112.7 113.4 113.4 112.8 113.0 Chemicals, petroleum, and rubber.. 11.92 149.3 151.1 151.6 151.6 151.5 151.2 151.3 153.5 153.0 153.7 153.9 153.8 153.3 152.7 Chemicals and products 7.86 150.1 152.7 153.0 154.5 154.9 155.3 155.5 156.2 156.2 156.9 155.8 155.9 156.1 155.9 Petroleum products 1.80 127.4 130.4 129.5 125.5 120.5 116.9 117.3 126.9 126.1 126.2 127.9 126.9 123.5 124.9 Rubber and plastics products.... 2.26 164.0 161.9 164.5 162.3 164.3 163.5 164.2 165.5 163.7 164.5 167.2 168.1 166.7 Foods and tobacco 9.48 121.9 121.7 124.7 123.0 125.4 126.2 125.3 124.3 126.5 125.3 124.8 124.6 124.6 124.0 Foods 8.81 122.7 122.4 125.4 124.5 126.3 127.2 126.5 125.9 127.8 127.1 126.6 126.2 126.0 125.3 Tobacco products .67 111.6 113.7 115.8 104.2 113.3 112.1 110.4 104.6 109.4 102.9 101.5 104.2 Mining Metal, stone, and earth minerals.... 1.26 118.1 120.9 121.3 122.0 121.4 119.9 119.7 117.5 117.9 112.4 113.5 109.9 113.6 113.3 Metal mining .51 130.8 138.3 135.2 135.2 135.2 132.2 132.9 127.4 128.1 121.1 120.3 110.0 126.0 Stone and earth minerals .75 109.5 109.2 111.7 113.1 111.9 111.6 110.7 110.7 111.0 106.4 108.8 109.9 105.0 Coal, oil, and gas 5.11 108.3 109.7 108.8 107.5 107.0 109.6 110.2 109.8 109.2 109.7 109.4 107.4 108.5 107.8 Coal .69 103.6 103.0 104.1 110.4 108.7 112.7 114.7 110.3 112.4 118.3 115.6 99.4 112.4 113.6 Oil and gas extraction 4.42 109.0 110.8 109.6 107.0 106.8 109.1 109.5 109.7 108.8 108.4 108.4 108.6 107.9 106.9 Utilities Electric 3.91 160.7 165.3 116633..44 115555..66 115533..00 115544..66 115555..11 115588..33 115599..00 116600..33 116622..77 116644..33 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 BUSINESS ACTIVITY; CONSTRUCTION • NOVEMBER 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) IInndduussttrriiaall pprroodduuccttiioonn Manu- Prices * facturing 2 IInn-- CCCCCaaaaa----- MMaarrkkeett dduussttrryy pppppaaaaaccccciiiiitttttyyyyy NNNNNooooonnnnnaaaaaggggg----uuuuutttttiiiiillllliiiiizzzzzaaaaa----- CCCCCooooonnnnn----- rrrrriiiiicccccuuuuulllll----- Products tttttiiiiiooooonnnnn ssssstttttrrrrruuuuuccccc----- tttttuuuuurrrrraaaaalllll TTTTToooootttttaaaaalllll Period TTTTToooootttttaaaaalllll TToottaall C Fi o n n a - l mm II ee nn dd ttee iiaa rr-- ttee MMM rrriii aaa aaa ttt lll eee sss --- fff MMM aaaccc iii aaa nnn ttt nnn uuu ggg uuu rrr--- --- iiiii ooooo ===== nnnnn ((((( uuuuu 11111 mmmmm ttttt 11111 99999 ppppp 00000 66666 fffff uuuuu 00000 ggggg 77777 ttttt ))))) ..... tttttrrrrr ccccc ttttt aaaaa iiiii ooooo ooooo ccccc nnnnn nnnnn ttttt ----- sssss TTTTT mmmmm ppppp eeeee ooooo eeeee lllll mmmmm ttttt ooooo nnnnn aaaaa yyyyy ttttt ----- lllll ————— ----- iiiii pppp mmmm EEEE llll eeee mmmm oooo nnnn yyyy ---- tttt ---- P r P r P r P roooo aaaa llll yyyy llllssss ---- sssss rrrrr aaaaa eeeee lllll ttttt eeeee aaaaa sssss iiiii lllll 33333 ssss CCCC uuuummmm oooonnnn eeee ---- rrrr mmmm WWWW cccc ssss oooo oooo hhhh aaaa mmmm dddd llll oooo eeee iiii llll ---- tttt eeee yyyy ---- Total sumer Equipgoods ment 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 .. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 .. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 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 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 107.3 93.9 116.3 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 197 3 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 114.8 101.9 146.9 133.1 134.7 1973—Sept. 126.8 124.3 122.4 132.3 108.5 131.0 131.3 126.3 583.3 182.0 115.3 102.1 149.8 163 135.5 139.7 Oct.. 127.0 124.3 122.7 132.6 108.9 130.6 131.1 126.4 1 191.0 116.0 102.9 151.7 164 136.6 138.7 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 J 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 I 181.0 116.6 101.5 150.5 168 143.1 151.4 Apr., 124.9 122.7 120.8 128.5 110.1 129.4 128.7 124.8 j 167.0 116.8 101.9 147.9 169 144.0 152.7 May, 125.7 123.8 122.4 129.7 112.2 129.2 129.1 125.7 \ 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 J 166.0 117.1 102.0 155.5 170 147.1 155.7 July. 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 117.0 101.7 156.6 177 148.3 161.7 Aug. 125.2 123.3 122.0 129.5 111.6 127.8 128.4 125.1 79.2 170.0 117.2 101.3 158.3 180 150.2 167.4 Sept. 125.6 123.3 122.3 128.5 113.7 127.1 129.2 125.4 187.0 117.5 101.2 163.0 176 151.9 167.2 Oct.. 112244..99 112233..00 112222..55 112288..33 111133..99 112255..00 112288..22 112244..55 111177..66 110000..66 116600..88 117755 117700..00 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 TTyyppee ooff oowwnneerrsshhiipp aanndd 11997722 11997733 ttyyppee ooff ccoonnssttrruuccttiioonn Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Total construction 1 90,979 100,071 8,151 8,983 7,905 6,133 5,954 6,610 7,911 8,929 10,158 8,480 9,295 8,416 8,359 By type of ownership: Public 24,043 26,686 2,328 2,055 2,140 1,855 2,135 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 Private 1 66,936 73,385 5,822 6,928 5,765 4,277 3,819 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 By type of construction: Residential building 1 44,975 46,246 3,638 3,673 3,299 2,341 2,231 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 Nonresidential building 27,021 31,761 2,719 2,758 2,655 2,210 2,307 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 Nonbuilding 18,983 22,064 1,794 2,552 1,951 1,581 1,415 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 Private housing units authorized... 2,219 1,820 1,656 11,,337799 1,361 1,285 1,282 1,325 1,410 11,,229966 11,,112200 11,,110066 11,,001177 r900 825 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, NorE.—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 adjustments— cent 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

NOVEMBER 1974 • CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential CCoonnsseerr-- PPPeeerrriiioooddd TTToootttaaalll TToottaall dd RR eenn ee tt ss ii ii aa -- ll TToottaall In tr d i u al s - B m u C i e l o r d m c i i n - a g l s b O in u t g i h s l e d 1 r - OOtthheerr TToottaall MM ttaa ii rr ll yy ii-- HH ww iigg aayy hh -- dd vv ee mm aa aa vv tt nn ee ee ii dd nn ll oo oo tt nn pp -- OOtthheerr 22 1965 77773333,,,,444411112222 55551111,,,,333355550000 22227777,,,,999933334444 22223333,,,,444411116666 5555,,,,111111118888 6666,,,,777733339999 4444,,,,777733335555 6666,,,,888822224444 22222222,,,,000066662222 888833330000 7,550 2,019 11,663 1966 77776666,,,,000000002222 55551111,,,,999999995555 22225555,,,,777711115555 22226666,,,,222288880000 6666,,,,666677779999 6666,,,,888877779999 5555,,,,000033337777 7777,,,,666688885555 22224444,,,,000000007777 777722227777 8,405 2,194 12,681 1967 77777777,,,,555500003333 55551111,,,,999966667777 22225555,,,,555566668888 22226666,,,,333399999999 6666,,,,111133331111 6666,,,,999988882222 4444,,,,999999993333 8888,,,,222299993333 22225555,,,,555533336666 666699995555 8,591 2,124 14,126 1968 88886666,,,,666622226666 55559999,,,,000022221111 33330000,,,,555566665555 22228888,,,,444455556666 6666,,,,000022221111 7777,,,,777766661111 4444,,,,333388882222 11110000,,,,222299992222 22227777,,,,666600005555 888800008888 9,321 1,973 15,503 1969 99993333,,,,777722228888 66665555,,,,444400004444 33333333,,,,222200000000 33332222,,,,222200004444 6666,,,,777788883333 9999,,,,444400001111 4444,,,,999977771111 11111111,,,,000044449999 22227777,,,,999966664444 888877779999 9,250 1,783 16,052 197 0 99994444,,,,111166667777 66666666,,,,000077771111 33331111,,,,888866664444 33334444,,,,222200007777 6666,,,,555533338888 9999,,,,777755554444 5555,,,,111122225555 11112222,,,,777799990000 22228888,,,,000099996666 777711118888 9,981 1,908 15,489 197 1 111100009999,,,,999955550000 88880000,,,,000077779999 44443333,,,,222266667777 33336666,,,,888811112222 5555,,,,444422223333 11111111,,,,666611119999 5555,,,,444433337777 11114444,,,,333333333333 22229999,,,,888877771111 999900001111 10,658 2,095 16,217 197 2 111122224444,,,,000077777777 99993333,,,,888899993333 55554444,,,,222288888888 33339999,,,,666600005555 4444,,,,666677776666 11113333,,,,444466662222 5555,,,,888899998888 11115555,,,,555566669999 33330000,,,,111188884444 1111,,,,000088887777 10,429 2,172 16,496 1973 r 111133335555,,,,444455556666 111100002222,,,,888899994444 55557777,,,,666622223333 44445555,,,,222277771111 6666,,,,222244443333 11115555,,,,444455553333 5555,,,,888888888888 11117777,,,,666688887777 33332222,,,,555566662222 1111,,,,111177770000 10,559 2.313 18,520 1973—Sep t 111133337777,,,,222288883333 111100004444,,,,111111119999 55558888,,,,000044448888 44446666,,,,000077771111 6666,,,,888822220000 11115555,,,,444444446666 5555,,,,666677774444 11118888,,,,111133331111 33333333,,,,111166664444 1111,,,,000022226666 11,128 2,354 18,656 Oct 111133336666,,,,444444446666 111100003333,,,,222288880000 55556666,,,,333311116666 44446666,,,,999966664444 6666,,,,777744448888 11115555,,,,777766662222 5555,,,,888866660000 11118888,,,,555599994444 33333333,,,,111166666666 1111,,,,000077779999 10,566 2,300 19,221 Nov 111133335555,,,,666699992222 111100002222,,,,222277770000 55554444,,,,555544448888 44447777,,,,777722222222 7777,,,,000088880000 11116666,,,,000055554444 5555,,,,777722227777 11118888,,,,888866661111 33333333,,,,444422222222 1111,,,,000066660000 10,952 2,362 19,048 Dec 111133333333,,,,222222222222 111100000000,,,,111111110000 55552222,,,,333355557777 44447777,,,,777755553333 7777,,,,333344443333 11115555,,,,888899990000 5555,,,,999911113333 11118888,,,,666600007777 33333333,,,,111111112222 1111,,,,000088882222 11,168 2.314 18,548 1974—Ja n 111133332222,,,,888866663333 99998888,,,,000022223333 44449999,,,,777722220000 44448888,,,,333300003333 6666,,,,888833331111 11115555,,,,777766662222 6666,,,,000055558888 11119999,,,,666655552222 33334444,,,,888844440000 1111,,,,333300005555 12,043 2,044 19,448 Feb 111133336666,,,,666600004444 99999999,,,,000099992222 44448888,,,,999966663333 55550000,,,,111122229999 7777,,,,888866669999 11116666,,,,666655550000 6666,,,,111144443333 11119999,,,,444466667777 33337777,,,,555511112222 1111,,,,333366661111 12,465 2,510 21,176 Mar 111133335555,,,,888888880000 99999999,,,,444444442222 44449999,,,,000099990000 55550000,,,,333355552222 7777,,,,555500000000 11116666,,,,666655552222 6666,,,,333333336666 11119999,,,,888866664444 33336666,,,,444433338888 1111,,,,444400001111 10,985 2,463 21,589 Apr 111133338888,,,,222277777777 99999999,,,,333322223333 44449999,,,,444433338888 44449999,,,,888888885555 6666,,,,999922220000 11116666,,,,222299996666 6666,,,,222266664444 22220000,,,,444400005555 33338888....999955554444 1111,,,,555500005555 12,209 2,665 22,575 May 111144440000,,,,555511111111 111100000000,,,,222233337777 44449999,,,,666600004444 55550000,,,,666633333333 7777,,,,666600006666 11116666,,,,444400008888 5555,,,,888899990000 22220000,,,,777722229999 44440000,,,,222277774444 1111,,,,111188881111 12,322 2,692 24,079 June 111133338888,,,,666611113333 111100000000,,,,111122228888 44449999,,,,222244444444 55550000,,,,888888884444 8888,,,,000022227777 11116666,,,,444422225555 6666,,,,000033334444 22220000,,,,333399998888 33338888,,,,444488885555 1111,,,,111166669999 11,632 3,306 22,378 July r 111133338888,,,,000022224444 99998888,,,,000066669999 44448888,,,,555522227777 44449999,,,,555544442222 7777,,,,111155558888 11115555,,,,999955553333 5555,,,,999911115555 22220000,,,,555511116666 33339999....999955555555 1111,,,,111133331111 Aug 111133332222,,,,777722222222 99995555,,,,777744448888 44447777,,,,111100001111 44448888,,,,666644447777 7777,,,,666611116666 11115555,,,,000055553333 5555,,,,666699991111 22220000,,,,222288887777 33336666,,,,999977774444 999977778888 Sept.p 111133333333,,,,000044441111 99993333,,,,666688888888 44444444,,,,888844445555 44448888,,,,888844443333 7777,,,,666688888888 11114444,,,,999922226666 5555,,,,777755554444 22220000,,,,444477775555 33339999,,,,333355553333 1111,,,,111166667777 1 Includes religious, educational, hospital, institutional, and other build- NOTE.—Census Bureau data; monthly series at seasonally adjusted ings. annual rates. 2 Sewer and water, formerly shown separately, now included in "Other." PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale * Units Median prices (in thousands MMMooobbbiiillleee of dollars) of PPPeeerrriiioooddd hhhooommmeee units 22--oorr-- 22--oorr-- 22--oorr-- ssshhhiiippp--- TToottaall ffaammiillyy mmoorree TToottaall ffaammiillyy mmoorree TToottaall ffaammiillyy mmoorree mmmeeennntttsss ffaammiillyy ffaammiillyy ffaammiillyy For sale For Sold (end of Sold sale period) 1965 111111,,,,,,444444777777333333 999999666666444444 555555000000999999 222222111111777777 555557777755555 222222222288888 2222200000.....00000 2222211111.....33333 1966 111111,,,,,,111111666666555555 777777777777999999 333333888888666666 222222111111777777 444446666611111 111119999966666 2222211111.....44444 2222222222.....88888 1967 111111,,,,,,222222999999222222 888888444444444444 444444444444888888 222222444444000000 444448888877777 111119999900000 2222222222.....77777 2222233333.....66666 1968 111111,,,,,,555555000000888888 888888999999999999 666666000000888888 11,,332200 885599 4466 ii 333333111111888888 444449999900000 222221111188888 2222244444.....77777 2222244444.....66666 196 9 111111,,,,,,444444666666777777 888888111111111111 666666555555666666 11,,339999 880088 559922 885 350 535 444444111111333333 444444444488888 222222222288888 2222255555.....66666 2222277777.....00000 197 0 111111,,,,,,444444333333444444 888888111111333333 666666222222111111 11,,441188 880022 661177 922 381 541 444444000000111111 444448888855555 222222222277777 2222233333.....44444 2222266666.....22222 197 1 222222,,,,,,000000555555222222 111111,,,,,,111111555555111111 999999000000111111 11,,770066 11,,001144 669922 1,254 505 749 444444999999777777 666665555566666 222229999944444 2222255555.....22222 2222255555.....99999 197 2 222222,,,,,,333333555555777777 111111,,,,,,333333000000999999 111111,,,,,,000000444444888888 11..997722 11,,114433 882288 1,586 640 947 555555777777666666 777771111188888 444441111166666 2222277777.....66666 2222288888.....33333 197 3 222222,,,,,,000000444444555555 111111,,,,,,111111333333222222 999999111111333333 22,,001144 11,,117744 884400 1,599 583 1,016 555555666666777777 666662222200000 444445555566666 3333322222.....55555 3333322222.....99999 1973—Sep t 111111,,,,,,888888444444444444 999999999999000000 888888555555444444 11,,994444 11,,115522 779922 1,716 650 1,066 444444777777999999 555555555577777 444445555533333 3333333333.....22222 3333322222.....11111 Oct 111111......666666777777444444 999999555555777777 777777111111888888 11..997733 11,,112211 885511 1,679 636 1,043 444444555555888888 555550000055555 444445555511111 3333333333.....33333 3333322222.....33333 Nov 111111......666666777777555555 999999333333888888 777777333333777777 11,,994499 11,,112288 882211 1,666 624 1,042 444444999999000000 555551111111111 444444444477777 3333344444.....00000 3333322222.....66666 Dec 111111,,,,,,444444000000333333 777777666666777777 666666333333666666 11,,887733 11,,005500 882233 1,647 616 1,031 444444555555666666 444443333333333 444444444466666 3333355555.....77777 3333322222.....99999 1974—Ja n 111111,,,,,,444444666666444444 777777999999333333 666666777777111111 11,,991166 11,,002266 889900 1,604 596 1,008 444444666666999999 444447777744444 444445555500000 3333344444.....22222 3333333333.....44444 Feb 111111,,,,,,999999222222222222 111111,,,,,,000000555555666666 888888666666666666 11,,889911 11,,001188 887733 1,620 601 1,019 444444444444999999 555551111166666 444445555599999 3333344444.....99999 3333333333.....55555 Mar 111111,,,,,,444444999999999999 999999666666222222 555555333333777777 11,,888855 997733 991122 1,563 597 966 444444777777555555 555558888855555 444445555533333 3333366666.....00000 3333344444.....00000 Apr 111111,,,,,,666666333333000000 999999999999666666 666666333333444444 11,,669955 888833 881122 1,542 600 942 444444333333555555 555557777700000 444444444499999 3333355555.....77777 3333344444.....33333 May 111111,,,,,,444444777777111111 999999333333111111 555555444444000000 11,,667777 888822 779955 1,510 597 913 444444555555111111 555559999999999 444444444411111 3333355555.....77777 3333344444.....77777 June' 111111,,,,,,555555999999666666 111111,,,,,,000000111111444444 555555888888222222 11,,885511 11,,009922 775599 1,478 579 899 444444444444111111 555553333377777 444443333355555 3333355555.....22222 3333355555.....00000 July 111111,,,,,,333333333333888888 999999555555888888 333333888888000000 11,,668811 993333 774488 1,449 582 867 333333888888000000 555551111144444 444443333311111 3333366666.....88888 3333355555.....33333 Aug 111111,,,,,,111111111111555555 888888000000999999 333333000000666666 11,,445544 886644 559900 1,411 573 838 333333777777000000 444446666644444 444443333322222 3333355555.....77777 3333355555.....55555 Sept.f 111111,,,,,,111111222222000000 888888222222222222 222222999999888888 333333111111666666 1 Merchant builders only. for mobile homes, which are private, domestic shipments as reported by the Mobile Home Manufacturers' Assn. and seasonally adjusted by NOTE.—All series except prices, seasonally adjusted. Annual rates for Census Bureau. Data for units under construction seasonally adjusted by starts, completions, mobile home shipments, and sales. Census data except Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 EMPLOYMENT • NOVEMBER 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T o s o t p t i a u tu l l a t n i t o o i n o n n a - l lab N or o t f i o n r ce T l f a o o b r t o c a e r l Employed1 Une m r m a e t n p e t 2 l oy- (N.S.A.) (N.S.A.) (S.A.) Total Total In c u n l o t n u a ra g l r i- In U pl n o e y m ed - (pe S r . A ce .) n t; industries agriculture 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86.542 81,702 78,230 3,472 4,840 5.6 197 3 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1973—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 Oct. 151,593 57,489 94,237 92,024 86,511 83,035 3,476 5,513 6.0 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is NOTE.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g a c- Mining c C o o n t n s io t t r r n a u c c t - t T i l o i r c n a n u & s t p il o i p t r i u t e 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 12,202 197 0 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 197 1 70,645 18,529 602 3,411 4,442 15,142 3,796 11,869 12,856 197 2 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 197 3 75,567 19,820 625 3,648 4,611 16,288 4,053 12,866 13,657 SEASONALLY ADJUSTED 1973—Oc t 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—Ja n 76,526 20,006 654 3,636 4,684 16,417 4,109 13,136 13,884 Feb 76,813 19,904 656 3,757 4,691 16,472 4,124 13,215 13,994 Mar 76,804 19,851 655 3,725 4,676 16,487 4,127 13,240 14,043 Apr 76,941 19,921 659 3,659 4,668 16,549 4,130 13,248 14,107 May 77,136 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 77,203 19,861 670 3,575 4.654 16,689 4,144 13,435 14,175 Sept.f 77,409 19,854 672 3,537 4,637 16,748 4,153 13,531 14,277 Oct.* 77,439 19,770 674 3,507 4,659 16,784 4,159 13,576 14,310 NOT SEASONALLY ADJUSTED 1973—Oc t 76,914 20,168 640 3,923 4,680 16,515 4,076 13,057 13,855 Nov 77,322 20,202 643 3,822 4,659 16,780 4.079 13,096 14,041 Dec 77,391 20,110 642 3,639 4,644 17,113 4.080 13,062 14,101 1974—Ja n 75,620 19,818 642 3,280 4,618 16,290 4,072 12,913 13,987 Feb 75,792 19,738 641 3,329 4,616 16,127 4,087 13,056 14,198 Mar 76,117 19,726 642 3,405 4,634 16,187 4,102 13,147 14,274 Apr 76,706 19,777 653 3,527 ,635 16,429 4,118 13,274 14,293 May 77,225 19,825 664 3,658 ,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 77,154 20,060 685 3,872 4,696 16,615 4,202 13,542 13,482 Sept.* 77,689 20,130 680 3,770 4,679 16,727 4,157 13,517 14,029 Oct.p 77,980 19,917 675 3,724 4,668 16,835 4,147 13,590 14,424 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

NOVEMBER 1974 • PRICES A 55 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur- AAppppaarreell TTrraannss-- PPeerriioodd iitt AA eemm llll ss FFoooodd Total Rent H o H oww ss oo hh nn mm ii ee pp ee rr -- -- F c a o o u n i a d l e l l t e r G a l i n e c a i c d s t - y o n p t i a n i i e n o s g r h d n s a - - uupp aa kk nn ee dd ee pp pp tt oo ii rr oo tt nn aa -- Total M c i a c e a r d e l - s c P o a e n r r a e - l r R e t a i e c i n n o r a g d n e d a - - g O s a i o e t c n o r h e d v d e s - r s 1929 5555511111.....33333 4444488888.....33333 7777766666.....00000 4444488888.....55555 1933 3333388888.....88888 3333300000.....66666 5555544444.....11111 3333366666.....99999 1941 4444444444.....11111 3333388888.....44444 555333...777 5555577777.....22222 444000...555 888111...444 4444444444.....88888 444444...222 333777...000 444111...222 444777...777 444999...222 1945 5555533333.....99999 5555500000.....77777 555999...111 5555588888.....88888 444888...000 777999...666 6666611111.....55555 444777...888 444222...111 555555...111 666222...444 555666...999 1960 8888888888.....77777 8888888888.....00000 999000...222 9999911111.....77777 86.3 888999...222 999888...666 93.8 8888899999.....66666 888999...666 85.1 777999...111 999000...111 888777...333 888777...888 196 5 9999944444.....55555 9999944444.....44444 999444...999 9999966666.....99999 92.7 999444...666 999999...444 95.3 9999933333.....77777 999555...999 93.4 888999...555 999555...222 999555...999 999444...222 196 6 9999977777.....22222 9999999999.....11111 999777...222 9999988888.....22222 96.3 999777...000 999999...666 97.0 9999966666.....11111 999777...222 96.1 999333...444 999777...111 999777...555 999777...222 196 7 111110000000000.....00000 111110000000000.....00000 111000000...000 111110000000000.....00000 100.0 111000000...000 111000000...000 100.0 111110000000000.....00000 111000000...000 100.0 111000000...000 111000000...000 111000000...000 111000000...000 196 8 111110000044444.....22222 111110000033333.....66666 111000444...222 111110000022222.....44444 105.7 111000333...111 111000000...999 104.4 111110000055555.....44444 111000333...222 105.0 111000666...111 111000444...222 111000444...777 111000444...666 196 9 111110000099999.....88888 111110000088888.....99999 111111000...888 111110000055555.....77777 116.0 111000555...666 111000222...888 109.0 111111111111111.....55555 111000777...222 110.3 111111333...444 111000999...333 111000888...777 111000999...111 197 0 111111111166666.....33333 111111111144444.....99999 111111888...999 111111111100000.....11111 128.5 111111000...111 111000777...333 113.4 111111111166666.....11111 111111222...777 116.2 111222000...666 111111333...222 111111333...444 111111666...000 197 1 111112222211111.....33333 111111111188888.....44444 111222444...333 111111111155555.....22222 133.7 111111777...555 111111444...777 118.1 111111111199999.....88888 111111888...666 122.2 111222888...444 111111666...888 111111999...333 111222000...999 197 2 111112222255555.....33333 111112222233333.....55555 111222999...222 111111111199999.....22222 140.1 111111888...555 111222000...555 121.0 111112222222222.....33333 111111999...999 126.1 111333222...555 111111999...888 111222222...888 111222555...555 197 3 111113333333333.....11111 111114444411111.....44444 111333555...000 111112222244444.....22222 146.7 111333666...000 111222666...444 124.9 111112222266666.....88888 111222333...888 130.2 111333777...777 111222555...222 111222555...999 111222999...000 1973—Sep t 111113333355555.....55555 111114444488888.....33333 111333666...666 111112222255555.....44444 149.2 111333333...666 111222666...555 126.1 111112222288888.....33333 111222333...999 131.1 111333888...333 111222666...333 111222666...888 111222999...999 Oct 111113333366666.....66666 111114444488888.....44444 111333888...111 111112222255555.....99999 151.5 111444111...111 111222777...444 126.7 111112222299999.....66666 111222555...000 132.1 111444000...666 111222777...333 111222777...222 111333000...333 Nov 111113333377777.....66666 111115555500000.....00000 111333999...444 111112222266666.....33333 152.6 111555555...666 111222999...888 127.5 111113333300000.....55555 111222555...888 132.6 111444000...999 111222888...111 111222777...555 111333000...888 Dec 111113333388888.....55555 111115555511111.....33333 111444000...666 111112222266666.....99999 153.6 111777222...888 111333111...000 128.0 111113333300000.....55555 111222666...777 133.0 111444111...444 111222999...222 111222777...666 111333111...333 1974—Ja n 111113333399999.....77777 111115555533333.....77777 111444222...222 111112222277777.....33333 154.8 111999444...666 111333444...333 129.0 111112222288888.....88888 111222888...111 133.7 111444222...222 111222999...888 111222888...333 111333111...888 Feb 111114444411111.....55555 111115555577777.....66666 111444333...444 111112222288888.....00000 155.8 222000222...000 111333777...333 130.1 111113333300000.....44444 111222999...333 134.5 111444333...444 111333000...888 111222888...999 111333222...333 Mar 111114444433333.....11111 111115555599999.....11111 111444444...999 111112222288888.....44444 157.2 222000111...555 111444000...000 132.6 111113333322222.....22222 111333222...000 135.4 111444444...888 111333111...888 111222999...555 111333222...888 Apr 111114444444444.....00000 111115555588888.....66666 111444666...000 111112222288888.....88888 158.2 222000666...555 111444111...999 134.0 111113333333333.....66666 111333444...444 136.3 111444555...666 111333333...111 111333000...444 111333333...666 May 111114444455555.....66666 111115555599999.....77777 111444777...666 111112222299999.....33333 159.4 222111111...000 111444333...999 137.0 111113333355555.....00000 111333777...666 137.7 111444777...222 111333444...999 111333222...000 111333444...444 June 111114444477777.....11111 111116666600000.....33333 111444999...222 111112222299999.....88888 161.2 222111444...222 111444444...555 139.2 111113333355555.....77777 111444000...777 139.4 111444999...444 111333666...555 111333333...555 111333555...888 July 111114444488888.....33333 111116666600000.....55555 111555000...999 111113333300000.....33333 163.2 222111888...555 111444666...222 141.4 111113333355555.....33333 111444222...666 141.0 111555111...444 111333777...888 111333444...666 111333777...777 Aug 111115555500000.....22222 111116666622222.....88888 111555222...888 111113333300000.....99999 165.4 222222000...999 111444888...555 143.9 111113333388888.....11111 111444333...444 142.6 111555333...777 111333999...333 111333555...222 111333999...444 Sept 111115555511111.....99999 111116666655555.....00000 111555444...999 111113333311111.....44444 167.9 222222222...777 111555000...222 146.6 111113333399999.....99999 111444444...333 144.0 111555555...222 111444111...222 111333777...000 111444000...444 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities PPrroo-- PPeerriioodd mm cc tt AA oo oo ii mm ee ll dd ss ll ii -- -- ppppppp FFFFFFF uuuuuuu rrrrrrr aaaaaaa ccccccc ooooooo rrrrrrr ttttttt ddddddd mmmmmmm sssssss ------- cc ff ff ee oo aa ee ss nn oo ee ss dd dd dd eedd ss ss Total t T e il t e e c x s . - , H e i t d c e . s, F e u tc e . l , C ic e h a t e c l m s . , - R b e u t e c r b . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s t , . - e c m M q a e h n e u r i a y n n d i - p t - - F t e u u t r r c n e . , i - N t e m m a r o l i a e l n n l i - s c - - T e p m t q r o i e u a o r n n n i t p a t s ! - - - n c M e e l o i l s u a - s - I960 9999944444.....99999 99999997777777.......2222222 8888899999.....55555 9999955555.....33333 9999999999.....55555 9999900000.....88888 9999966666.....11111 111110000011111.....88888 111110000033333.....11111 9999955555.....33333 9999988888.....11111 9999922222.....44444 9999922222.....00000 9999999999.....00000 9999977777.....22222 9999933333.....00000 1965 9999966666.....66666 99999998888888.......7777777 9999955555.....55555 9999966666.....44444 9999999999.....88888 9999944444.....33333 9999955555.....55555 9999999999.....00000 9999955555.....99999 9999955555.....99999 9999966666.....22222 9999966666.....44444 9999933333.....99999 9999966666.....99999 9999977777.....55555 9999955555.....99999 1966 9999999999.....88888 111111100000005555555.......9999999 111110000011111.....22222 9999988888.....55555 111110000000000.....11111 111110000033333.....44444 9999977777.....88888 9999999999.....44444 9999977777.....88888 111110000000000.....22222 9999988888.....88888 9999988888.....88888 9999966666.....88888 9999988888.....00000 9999988888.....44444 9999977777.....77777 1967 111110000000000.....00000 111111100000000000000.......0000000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 111110000000000.....00000 IQFIR 111110000022222.....55555 111111100000002222222.......5555555 111110000022222.....22222 111110000022222.....55555 111110000033333.....77777 111110000033333.....22222 9999988888.....99999 9999999999.....88888 111110000033333.....44444 111111111133333.....33333 111110000011111.....11111 111110000022222.....66666 111110000033333.....22222 111110000022222.....88888 111110000033333.....77777 111110000022222.....22222 1969. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973. 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1973--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 il9.4 128.2 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 Oct 170.0 187.5 182.4 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME • NOVEMBER 1974 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 III IV II III Gross national product. 103.1 55.6 124.5 284.8 930.3 977.1 1,054.9 1,158.0 1,294.9 1,308.9 1.344.0 1.358.8 1,383.8 1,411.6 Final purchases 101.4 57.2 120.1 278.0 922.5 972.6 1,048.16, 149.16,2 79.6 1,897.0 1.815.11. 341.19,3 70.3 1,405.8 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 816.3 823.9 840.6 869.1 899.9 Durable goods 9.2 3.5 9.6 30.5 90.8 91.3 103.9 118.4 130.3 132.4 124.3 123.9 129.5 136.0 Nondurable goods 37.7 22.3 42.9 98.1 245.9 263.8 278.4 299.7 338.0 343.8 352.1 364.4 375. 388.1 Services 30.3 20.1 28.1 62.4 242.7 262.6 284.8 310.9 336.9 340.1 347.4 352.4 363.8 375.9 Gr F o i s x s e d p ri in va ve te s tm do en m t estic investment 1 14 6 . . 5 2 3 1. . 4 0 1 13 7 . . 4 9 5 47 4 . . 3 1 1 13 3 1 9 . . 1 0 1 13 3 1 6 . . 7 3 1 1 4 5 7 3 .4 .7 1 17 7 0 9 .8 .3 2 19 0 4 9 . . 0 4 2 19 0 7 9 . . 1 0 2 1 2 95 4 . . 5 5 2 19 1 3 0 . . 6 5 2 19 1 8 1 . . 3 8 2 19 0 8 4 .8 .6 No S n t r r e u si c d t e u n r t e ia s l 10 5 .6 .0 2. . 4 9 9 2 . . 5 9 27 9 .9 .2 9 3 8 4 . . 5 2 10 3 0 6 . 6 10 3 4 7 . . 6 9 11 4 6 1 .8 .1 13 4 6 7 . . 0 1 4 39 7 . . 0 9 1 4 41 9 . . 9 3 14 5 5 1 . . 2 3 14 5 9 2 . . 4 2 15 5 2 1 .5 .4 Producers' durable equipment. 5.6 1.5 6.6 18.7 64.3 64.4 66.6 75.7 89 91.1 92.6 93.9 97.2 101.1 Residential structures 4.0 .6 3.9 19.4 32.6 31.2 42. 54.0 57,2 58.1 53.6 48.4 48. 46.3 Ch N a o n N n g o e f a n i r f n m a r b m us iness inventories 3 1 1 . . 8 7 — — 1 . 1 5 .4 . 6 4 4 3 . . . 5 0 7 1 6 6 8 . . . 0 6 3 7 7 2 . . . 8 7 0 3 4 4 0 . . . 5 7 3 4 6 4 2 . . . 9 3 3 5 8 7 3 . . 5 4 5 1 1 6 5 1 . . . 7 4 4 5 1 7 1 7 . . . 4 6 8 2 2 5 8 4 3 . . . 9 0 0 4 1 1 7 6 3 . . . 9 1 4 1 1 8 3 0 . . . 0 5 4 4 5 5 3 . . . 8 1 5 Net exports of goods and services. 1.1 .4 1.3 1.8 1.9 3.6 -.2 -6.0 3.9 6.7 9.3 11.3 -1.5 4.1 Exports 7.0 2.4 5.9 13.8 55.5 62.9 65.4 72.4 100.4 103.7 113.6 131.2 138.5 143.9 Imports 5.9 2.0 4.6 12.0 53.6 59.3 65.6 78.4 96.4 96.9 104.3 119.9 140.0 148.0 Government purchases of goods and services. 8.5 8.0 24.8 37.9 210.0 219.5 234.2 255.7 276.4 276.9 286.4 296.3 304.4 311.2 Federal 1.3 2.0 16.9 18.4 98.8 96.2 97.6 104.9 106.6 105.3 108.4 111.5 114.3 116.4 National defense 13.8 14.1 78.4 74.6 71.2 74. 74.4 73.3 75.3 75. 76.6 78.8 Other 3.1 4.3 20.4 21.6 26.5 30. 32.2 32.0 33.1 35.7 37.7 37.7 State and local 7.2 6.0 7.9 19.5 111.2 123.3 136.6 150.8 169. 171.6 177.9 184 190 194.8 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 725.6 722.5 746.3 792.5 839.2 840.8 845.7 830.5 827.1 821.1 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 11992299 11993333 11994411 11995500 11996699 11997700 11997711 11997722 11997733 III IV I II III^ National income 86.8 40.3 104.2 241.1 766.0 800.5 857.7 946.5 1,065.6 1,077.3 1,106.3 1,118.8 1,130.2 Compensation of employees. 51.1 29.5 64.8 154.6 566.0 603.9 643.1 707.1 786.0 793.3 814.8 828.8 848.3 867.8 Wages and salaries.... 50.4 29.0 62.1 146.8 509.7 542.0 573.6 626.8 691.6 698.2 717.0 727.6 744.6 761.1 Private 45.5 23.9 51.9 124.4 405.6 426.9 449.5 491.4 545.1 550.8 565.8 573.8 588.3 602.2 Military .3 .3 1.9 5.0 19.0 19.6 19.4 20.5 20.6 20.2 21.0 21.0 20.9 20.8 Government civilian. 4.6 4.9 8.3 17.4 85.1 95.5 104.7 114.8 126.0 127.2 130.2 132.8 135.4 138.4 Supplements to wages and salaries .7 .5 2.7 7.8 56.3 61.9 69.5 80.3 94.4 95.1 97.7 101.2 103.7 106.7 Employer contributions for social insurance .1 .1 2.0 4.0 27.8 29.7 33.1 38.6 48.4 48.8 50.1 52.3 53.2 54.4 Other labor income .6 .4 .7 3.8 28.4 32.2 36.4 41.7 46.0 46.3 47.6 48.9 50.5 52.3 Proprietors' income 15.1 5.9 17.5 37.5 67.2 66.9 69.2 75.9 96.1 99.3 103.2 98.4 89.9 90.7 Business and professional. 9.0 3.3 11.1 24.0 50.5 50.0 52.0 54.9 57.6 57.7 58.4 59.3 60.7 62.4 Farm 6.2 2.6 6.4 13.5 16.7 16.9 17.2 21.0 38.5 41.5 44.9 39.1 29.1 28.3 Rental income of persons 5.4 2.0 3.5 9.4 22.6 23.9 25.2 25.9 26.1 26.2 26.4 26.4 26.3 2266..66 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.2 106.4 107.7 105.6 Profits before tax 10.0 1.0 17.7 42.6 84.9 74.0 83.6 99.2 122.7 122.7 122.7 138.7 143.5 Profits tax liability 1.4 .5 7.6 17.8 40.1 34.8 37.5 41.5 49.8 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 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 29.8 30.7 31.6 32.5 33.2 Undistributed profits. 2.8 —1.6 5.7 16.0 20.5 14.6 21.1 30.3 43.3 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 -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 53.2 55.5 57.5 60.1 62.8 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

NOVEMBER 1974 • NATIONAL PRODUCT AND INCOME A 57 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 1929 1933 1941 1950 1969 1970 1971 11997722 1973 III IV I II UlP Gross national product. 103.1 55.6 124.5 284.8 930.3 977.1 1,054.9 1,158.0 1,294.9 1,308.9 1,344.0 1,358.8 1,383.8 1,411.6 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 81.6 87.3 93.7 102.9 110.8 111.5 113.9 115.8 118.6 120.7 Indirect business tax and nontax liability. ... 7.0 7.1 11.3 23.3 85.9 93.5 102.7 110.0 119.2 120.4 121.3 122.6 125.9 129.7 Business transfer payments. .......... .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.9 5.0 5.1 5.2 5.3 Statistical discrepancy. .7 .6 .4 1.5 -6.1 -6.4 -2.3 -3.8 -5.0 -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 .3 -.1 -2.7 -3.7 -2.9 Equals: National income 86.8 40.3 104.2 241.1 766.0 800.5 857.7 946.5 1,065.6 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 92.2 105.1 105.2 106.4 107.7 105.6 Contributions for social insurance.... .2 .3 2.8 6.9 54.2 57.7 63.8 73.0 91.2 92.1 93.9 99.1 100.8 102.9 Excess of wage accruals over disbursements .0 .6 .0 -. 1 .0 .0 .0 -.6 -1.5 Plus: Government transfer payments .9 1.5 2.6 14.3 61.9 75.1 89.0 98.6 113.0 114.1 117.1 123.1 130.6 138.5 Net interest paid by government and consumers 2.5 1.6 2.2 7.2 28.7 31.0 31.2 33.0 38.3 39.3 40.4 40.8 41.9 42.5 Dividends. 5.8 2.0 4.4 8.8 24.3 24.7 25.0 27.3 29.6 29.8 30.7 31.6 32.5 33.2 Business transfer payments .6 .7 .5 .8 3.8 4.0 4.3 4.6 4.9 4.9 5.0 5.1 5.2 5.3 Equals: Personal income... 85.9 47.0 96.0 227.6 750.9 808.3 864.0 944.9 1,055.0 1,068.0 1,099.3 1,112.5 1,134.6 1,165.9 Less: Personal tax and nontax payments. . 2.6 1.5 3.3 20.7 116.5 116.6 117.6 142.4 151.3 154.2 159.9 161.9 168.2 175.1 Equals: Disposable personal income 83.3 45.5 92.7 206.9 634.4 691.7 746.4 802.5 903.7 913.9 939.4 950.6 966.5 990.8 Less: Personal outlays 79.1 46.5 81.7 193.9 596.2 635.5 685.9 749.9 829.4 840.7 850.1 866.2 894.9 926.2 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 816.3 823.9 840.6 869.1 899.9 Consumer interest payments 1.5 .5 .9 2.4 15.8 16.8 17.7 19.8 22.9 23.4 24.0 24.4 24.8 25.3 Personal transfer payments to for- 1 eigners. .3 2 .2 .5 .9 1.0 1.1 1.1 1.3 ,9 2.2 1 1.0 .9 Equals: Personal saving................. 4.2 -.9 11.0 13.1 38.2 56.2 60.5 52.6 74.4 73.2 89.3j 84.4 71.5 64.6 Disposable personal income in constant (1958) 1 dollars.. ... .... ....... 150.6 112.2 190.3 249.6 513.6 534.8 555.4 580.5 619.6 621.8 622.9 | 610.3 603.5 601.9 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1973 1974 IItteemm 11997722 11997733 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug25 Sept .p Total personal income 944.9 1,055.0 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 1,174.0 Wage and salary disbursements 626.8 691.7 704.5 711.0 717.9 722.2 722.5 728.3 732.1 737.1 745.3 753.2 759.7 761.6 766.5 Commodity-producing industries... 225.4 251.9 257.4 260.0 263.1 264.5 262.1 264.6 265.3 267.4 270.0 272.6 273.3 276.5 278.4 Manufacturing only 175.8 196.6 200.4 202.9 205.2 205.8 204.1 204.9 205.5 207.8 210.1 212.5 214.0 215.5 217.8 Distributive industries 151.0 165.1 168.2 169.1 171.1 170.9 172.0 172.8 173.9 175.3 177.8 179.1 180.8 180.7 182.5 Service industries 115.3 128.2 130.7 131.5 132.3 134.7 135.3 137.0 138.2 139.1 141.1 142.6 143.5 144.9 145.9 Government 135.0 146.6 148.2 150.4 151.4 152.1 153.0 153.8 154.6 155.3 156.3 158.9 162.1 159.5 159.7 Other labor income 41.7 46.0 46.7 47.1 47.6 48.0 48.5 48.9 49.4 49.9 50.5 51.1 51.7 52.3 52.9 Proprietors' income 75.9 96.1 102.1 103.2 103.4 103.3 100.8 98.5 96.0 92.8 89.9 86.9 89.0 91.1 92.0 Business and professional 54.9 57.6 57.8 58.3 58.5 58.4 58.7 59.4 59.9 60.2 60.8 61.2 61.9 62.5 62.8 Farm 21.0 38.5 44.3 44.9 44.9 44.9 42.1 39.1 36.1 32.6 29.1 25.7 27.1 28.6 29.2 Rental income 25.9 26.1 26.4 26.4 26.4 26.4 26.4 26.4 26.4 25.5 26.7 26.7 26.6 26.6 26.6 Dividends 27.3 29.6 30.0 30.2 30.4 31.6 31.4 31.6 31.9 32.1 32.5 33.0 33.1 33.2 33.4 Personal interest income 78.6 90.6 93.7 94.8 96.0 97.0 97.5 98.3 99.0 100.4 102.0 103.5 104.4 105.3 106.2 Transfer payments 103.2 117.8 120.4 121.7 122.1 122.6 126.7 128.4 129.5 134.6 135.8 137.0 142.5 143.6 145.2 Less: Personal contributions for social insurance., „, 34.5 42.8 43.5 43.7 43.8 43.8 46.7 46.8 47.0 47.2 47.6 47.9 48.5 48.4 48.6 Nonagricultural income 916.5 1,008.0 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 1,126.8 1,135.0 Agricultural income 28.4 47.1 52.9 53.8 53.9 54.2 51.5 48.5 45.5 42.1 38.6 36.8 36.7 38.4 39.0 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 FLOW OF FUNDS • NOVEMBER 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1973 1974 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1965 1966 1967 1968 1969 1970 1971 1972 1973 HI H2 HI Funds raised, by type and sector 1 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 ! 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 11.2 17.6 14.4 13.7 11.6 15.8 16.4 10 11 Corporate and foreign bonds 5.9 11.0 15.9 14.0 13.0 20.6 19.7 13.2 10.2 9.4 10.9 16.3 11 12 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 15.4 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 44.8 41.9 37.4 13 14 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 9.7 7.1 8.3 14 15 4.4 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 16.8 17.3 13.5 15 16 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 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 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 outlays1 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 3.7 8.5 -3.2 -5.2 -10.0 -14.5 -22.8 -24.5 -19.8 -31.8 -7.7 -24.4 1 1 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 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by Federally NOTE.—Full statements for sectors and transaction types are available sponsored credit agencies are excluded as borrowing by financial instituon a quarterly basis and annually for flows and for amounts outstanding. tions. Such issues are on p. A-59, line 11. Corporate equity issues are net Requests for these statements should be addressed to the Flow of Funds cash issues by nonfinancial and foreign corporations. Mortgages exclude Section, Division of Research and Statistics, Board of Governors of the loans in process. Open market paper is commercial paper issued by Federal Reserve System, Washington, D.C. 20551. nonfinancial corporations plus bankers' acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • FLOW OF FUNDS A 59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1973 1974 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11996655 11996666 11996677 11996688 11996699 11997700 11997711 11997722 11997733 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 1 By public agencies and foreign 2 8.9 11.9 11.3 12.2 15.7 28.1 41.7 18.3 3333..22 4411..00 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 * 7.2 8.0 6.3 6.8 5 6 Other loans and securities 4.1 4.8 4.9 5.1 6.3 5.2 4.9 4.6 7.5 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 -.1 3.2 8.9 10.0 3.2 7.0 20.3 18.3 22.2 20.0 8 9 Monetary authorities 3.8 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 10.1 8.3 6.2 9 10 . 1 -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 -10.1 10.2 10 H Agency borrowing not included in line 1 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 17.4 21.8 14.1 11 Private domestic funds advanced 12 62.8 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 168.8 164.2 157.5 12 13 U.S. Government securities * 5.4 5.7 13.3 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 9.5 9.9 11.2 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 19.5 13.2 10.1 9.1 11.0 14.9 15 16 Residential mortgages 18.6 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 49.4 38.8 34.2 16 17 Other mortgages and loans 31.6 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 92.0 82.8 85.5 17 18 Less: FHLB advances .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 8.0 6.3 6.8 18 Private financial intermediation 19 Credit market funds advanced by private financial 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 38.7 18.2 35.1 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 41.4 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 13.3 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 5.3 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 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 7.7 11.7 28 29 Treasury balances -1.0 -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -.3 -1.7 -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 19.3 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 39.3 26.4 52.2 37.4 32 33 U.S. Government securities 2.9 8.4 -1.4 8.1 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 2.1 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 1.5 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 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 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 94.4 58.1 85.6 3.9 40 Large negotiable CD's 3.6 -.2 4.3 3.5 -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 17.5 3.4 24.2 32.9 30.6 29.5 29.3 29.8 27.0 41 42 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 42 43 Money 7.8 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 13.6 11.6 10.9 43 44 Demand deposits 5.6 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 7.9 9.3 1.8 44 45 Currency 2.1 2.0 2.1 2.4 2.8 3.5 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 30.7 11.5 18.4 21.3 15.1 21.3 47 48 Private financial intermediation (in per cent) 100.1 75.9 93.2 86.4 68.3 103.1 112.8 104.5 95.4 106.0 84.5 90.2 48 49 Total foreign funds .8 2.1 4.3 2.9 9.1 1.8 23.2 13.6 7.2 16.9 -2.4 21.9 49 Corporate equities not included above j 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 1 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-58. 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

A 60 U.S. BALANCE OF PAYMENTS • NOVEMBER 1974 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1973 1974 Credits (+), debits (-) 1971 1972 1973 III Merchandise trade balance 1. -2,722 -6,986 471 -363 578 1,210 -74 Exports 42.754 48,768 70,277 16,679 18,152 20,216 22,299 Imports -45,476 -55,754 -69,806 -17,042 -17,574 -19,006 -22,373 - Military transactions, net. -2,908 - 3.604 -2,201 -763 -547 -58 -493 Travel and transportation, net. -2,341 -3,055 -2,710 -781 -613 -630 -502 Investment income, net 2 5.021 4,526 5,291 1,208 1,257 1.378 3,076 U.S. direct investments abroad 2 6,385 6,925 9,415 2,210 2,323 2,688 4,619 Other U.S. investments abroad 3.444 3.494 4.569 1,098 1,179 1,292 1,500 Foreign investments in the United States - -4,809 5,893 - 8,693 -2,100 -2,245 -2,602 -3,043 Other services, net 2 . 2.781 3,110 3.540 815 984 901 921 Balance on goods and services : 170 -6,009 4,391 116 1,659 2,801 2,928 228 -195 3,865 4,029 Remittances, pensions, and other transfers. -1,604 -1,624 -1,943 -390 Balance on goods, services, and remittances. . . -1,774 7,634 2,448 -295 1,247 2,084 -187 3,142 2,538 -623 U.S. Government grants (excluding military). -2,043 -2,173 -1,933 -645 3,665 -485 Balance on current account -3,817 9,807 515 -940 1,637 4-2,561 -872 -1,07716 2 2,717 41 ,0-8263 U.S. Government capital flows excluding nonscheduled repayments, net 5. . -2,111 -1.705 -2,938 -565 -608 -1,066 4 1,307 Nonscheduled repayments of U.S. Government assets 227 137 289 174 4 U.S. Government nonliquid liabilities to other than foreign official reserve agencies -478 238 1,111 485 206 204 36 Long-term private capital flows, net -4,381 -98 127 -315 1,529 -1,406 466 U.S. direct investments abroad -4.943 -3,517 -4,872 -973 -710 -1,374 -627 Foreign direct investments in the United States -115 383 2,537 588 886 712 1,281 Foreign securities -966 -654 -807 -124 -209 -525 -646 U.S. securities other than Treasury issues 2,289 4,507 4,501 489 1,173 670 687 Other, reported by U.S. banks -862 - 1.158 -581 - 239 227 -459 -26 Other, reported by U.S. nonbanking concerns 216 341 -200 -56 162 -430 -203 Balance on current account and long-term capital 5. -10,559 -11,235 -896 -1,161 1,893 -631 1,786 -1,184 224 1,109 2,163 Nonliquid short-term private capital flows, net -2,347 -1,541 -4,276 -1,457 97 -1,253 -3,963 Claims reported by U.S. banks -1,802 -1,457 -3,940 -1,399 222 -1.119 -2,790 Claims reported by U.S. nonbanking concerns -530 -305 -1,240 -59 -460 -664 -1,636 Liabilities reported by U.S. nonbanking concerns. -15 221 904 1 335 530 463 Allocations of Special Drawing Rights (SDR's) 717 710 Errors and omissions, net -9,776 -1,790 -2,624 908 -364 925 1,209 Net liquidity balance. -21,965 -13,856 -7,796 -1,710 -1,626 -959 -968 -2,038 611 -179 -158 Liquid private capital flows, net -7,788 3,502 2,492 1,997 316 3,620 2,030 Liquid claims -1,097 -1,247 -1,944 923 -521 -493 -2,600 Reported by U.S. banks -566 -742 -1,103 966 -456 -472 -2,239 Reported by U.S. nonbanking concerns .. -531 -505 -841 -73 -65 -21 -361 Liquid liabilities— -6,691 4,749 4,436 1,074 837 4,113 4,630 Foreign commercial banks -6,908 3,716 2,978 723 699 3,229 4,616 International and regional organizations. 682 104 376 31 -50 384 -585 Other foreigners -465 929 1,082 320 188 500 599 Official reserve transactions balance, financed by changes in—. -29,753 -10,354 -5,304 287 1,942 2,661 1,062 769 939 2,982 1,495 Liquid liabilities to foreign official agencies 27,615 9,734 4.452 -730 -1.488 Other readily marketable liabilities to foreign official agencies 6 -551 399 1,118 -354 -277 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt 341 189 -475 167 -452 -147 -2 U.S. official reserve assets, net 2,348 32 209 17 -13 -15 -210 Gold 866 547 SDR's -249 -703 Convertible currencies 381 35 233 Gold tranche position in IMF 1,350 153 -33 -209 Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14) 3,204 4,189 833 758 487 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 Official reserve transactions. -30,470 -11,064 -5,304 769 939 2,982 1,495 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports Trade balance 1971 1972 1973 1974 1971 1972 1973 1974 1971 1972 1973 1974 Month: Jan... 3,601 4,074 4,955 7,111 3,599 4.436 5.244 6,467 2 -361 -289 644 Feb.. . 3,695 3,824 5,070 7,606 3,564 4:473 5.483 7,392 130 -649 -413 213 Mar... 3,790 3,869 5,311 7,674 3,628 4,515 5,414 7,845 160 -647 -103 -171 Apr... ,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 8,286 4,179 4.612 5.644 8,519 308 -436 + 776 -233 Oct.. . 2,669 4,316 6.585 3,469 4.738 5.996 -800 -421 + 589 Nov... 3,196 4,473 6.879 3,456 5.148 6.684 -260 -675 + 195 Dec... 3,881 4,558 6.949 4,169 5,002 6.291 -288 — 444 +658 Quarter: I. . .. . 11,086 11,767 15,337 22,390 10,792 13,403 16,140 21,704 294 -1,657 -804 686 II..... 11,049 11.673 16.783 24.220 11,719 13.370 16.838 25.161 -670 -1,697 -56 -940 Ill .. . 11,727 12:447 18.327 24.963 11,924 13:903 17,483 27.057 -197 -1.456 +845 -2,094 IV.... 9,746 13,347 20,413 11,094 14.888 18.972 -1,348 -1:540 + 1,441 Year3.. . 43,549 49,208 70,823 45,563 55,555 69,476 -2,014 -6,347 + 1,348 1 Exports of domestic and foreign merchandise; excludes Dept. of 3 Sum of unadjusted figures. Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. NOTE.—Bureau of the Census data. Details may not add to totals be- 2 General imports including imports for immediate consumption plus cause of rounding. entries into bonded warehouses. 3. U.S. RESERVE ASSETS (In millions of dollars) Gold stock1 Con- RReesseerrvvee Gold stock Con- Reserve EE yy nn ee dd aa rr oo ff Total Total2 Treasury v c fo u e c r r r i t e r e i i e b s g n l n e - ppoo II ss MM ii ii nn tt FF ii oo nn SDR's3 E m n o d n t o h f Total 2 Treasury v c fo u e c r r r ie t e r i i s e b g 4 n l n e - position SDR s3 1960... 1199,,335599 1177,,880044 1177,,776677 11,,555555 1973 1961... 1188,,775533 1166,,994477 1166,,888899 116 11 ,,669900 Oct.. . 814,367 HI,652 s11,567 541 2,166 1962. . . 1177,,222200 1166,,005577 1155,,997788 99 11,,006644 Nov... 14,373 11,652 11,567 547 2,166 1963.. . 1166,,884433 1155,,559966 1155,,551133 212 11,,003355 Dec.. 14,378 11.652 11,567 552 2,166 1964. . . 1166,,667722 1155,,447711 1155,,338888 432 776699 1974 1965. . . 15,450 13,806 13,733 781 863 Jan.. . 14,565 11,652 11,567 59 2,166 1966. . . 14,882 13,235 13,159 1,321 326 Feb... 14,643 11,652 11,567 68 757 2,166 1967.. . 14,830 12,065 11,982 2,345 420 Mar... 14,588 11,652 11,567 9 761 2,166 1968.. . 15,710 10,892 10,367 3,528 1,290 Apr... 14,651 11,652 11,567 9 824 2,166 1969. . . 5 16,964 11,859 10,367 52,781 2,324 May. . 14,870 11,652 11,567 66 989 2,163 June. . 14,946 11,652 11,567 94 1,005 2,195 1970.. . 14,487 11,072 10,732 629 1,935 851 July... 14,912 11,652 11,567 12 1,021 2,227 1971 . . . 612,167 10,206 10,132 6 276 585 1,100 Aug. . 15,460 11,652 11,567 224 1,384 2,200 19727. . 13,151 10,487 10,410 241 465 1,958 Sept... 15,893 11,652 11,567 246 1,713 2,282 19738 . . 14,378 11,652 11,567 8 552 2.166 Oct.. . 15,890 11,652 11.567 193 1.739 9 2.306 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR's $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 8 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million) 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR's $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 9 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR's. of 16 member countries. The U.S. SDR holdings and reserve position 4 For holdings of F.R. Banks only, see p. A-l 1. 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 Oct. amounted to $2,326 million, reserve position in IMF $1,748 at time of revaluation. mil'ion, and total U.S. reserve assets $15,919 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 Commerce, 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 • NOVEMBER 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: --8822 -----------5555555555555555555555 ----111100000000 --2255 44 Belgium -----------4444444444400000000000 ----88883333 ---555888 ---111111000 --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333332222255555 --112299 ---444777333 -----------222222222222222222222255555555555 555550000000000 -----------11111111111 -------2222222 ---222 ---222 ----55552222 4444411111 22 Italy 222222222220000000000000000000000 -------88888880000000 ---666000 ---888555 ----222200009999 -----7777766666 -----------6666666666600000000000 -------33333335555555 ----11119999 ----55550000 --2255 --113300 -----------3333333333322222222222 -------111111188888880000000 55551111 -----------8888888888811111111111 -------55555550000000 ---222 ---333000 ---555000 --2255 ----55550000 --117755 332299 666666666661111111111188888888888 111111155555550000000 888000 ---888777999 ---888333555 O Ba th n e k r for Intl. Settlements.. 11 --66 --3355 --4499 1166 --4477 222 111 000 111 000 --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 -------99999995555555 ----33335555 Malaysia --11 -------33333334444444 ----11110000 Philippines 2255 2200 ** --ii 9999999 4400 --44 ----2222 Saudi Arabia -------55555550000000 Singapore -------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 Fund4 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. 5 Payment to the IMF of $259 million increase in U.S. gold subscription 4 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. U.S. payment of increases in its gold subscription to IMF, gold deposits 6 Includes the U.S. payment of $385 million increase in its gold subby the IMF (see note 1 (b) to Table 3), and withdrawal of deposits. The scription to the IMF and gold sold by the IMF to the United States in first withdrawal ($17 million) was made in June 1968 and the last with- mitigation of U.S. sales to other countries making gold payments to the drawal ($144 million) was made in Feb. 1972. IMF. The country data include U.S. gold sales to various countries in IMF sold to the United States a total of $800 million of gold ($200 connection with the IMF quota payments. Such U.S. sales to countries million in 1956, and $300 million in 1959 and in 1960) with the right of and resales to the United States by the IMF totaled $548 million each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to liabili- other foreigners ties to Liquid IMF Nonmar- Liquid Total a f r g r i o s o i l m d n g S t h e o rm rt- Market- N k o e n ta m b a le r - n v k o e e n r t t a c i b o b l n l e e - r O ea th d e il r y to li a t c i b e o i s m l i- - S t h e o rm rt - Marketac tr t a io n n s- s1 Total t l i i e a s b i r l e i- - U ab .S le . ve c r o t n ib - le T U re .S a . s . ma a r b k le e t- m b e a r n c k ia s l Total t l i i e a s b i r l e i- - U ab .S le . po b r y te d T bo re n a d s s . T U re .S a . s . bo an n d d s li t a i b es il 5 i - abroad6 po b r y te d T bo re n a d s s . ba i n n k s no a t n e d s 3 bo an n d d s notes4 ba i n n k s no a te n s d 3 •7 U.S. notes U.S. 24,268 800 12,914 11,963 751 5,346 3,013 2,565 J26,433 800 14,459 12,467 1,217 703 63 5,817 3,397 3,046 \26,394 800 14,425 12,467 1,183 703 63 5,817 3,387 3,046 J29.313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 \29,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 29,569 834 15,826 13,066 1,105 1,201 334 7,419 4,059 3,587 /31,145 1,011 14,841 12,484 860 256 328 913 10,116 4.271 3.743 \31,020 1,011 14,896 12,539 860 256 328 913 9,936 4.272 3.744 /35.819 1,033 18,201 14,034 711 741 1,807 11,209 4,685 4,127 \35,667 1,033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 J38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 \38,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 IO/45,755 1,019 1015,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 \45,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 f47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 /67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 \67,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 82,853 61.526 40,000 5,236 12,108 3,639 543 14,665 5,035 4,610 91,930 69,777 45,174 6,914 12,319 3,355 2,015 15,031 5,503 5,156 93,017 69,702 45,212 6,929 12,319 3.233 2,009 15,958 5,536 5,162 92,393 67,400 43,791 6,207 12,319 3.234 1,849 17,261 5,722 5,312 92,371 66,810 43,919 5,701 12,319 3,210 1,661 17,647 5,911 5,481 89,876 63,871 41,556 5,229 12.321 3,210 1,555 18,040 6,044 5,595 91,807 64,099 41,991 5,192 12.322 3,210 1,384 19,692 6,223 5,813 95,517 65.527 43,412 5,192 12.329 3,210 1,384 22,028 6,544 6,144 97,306 67,163 45,184 5,020 12.330 3,210 1,419 22,060 6,789 6,369 100,753 68,014 46,031 5,013 12,330 3,210 1 ,430 24,312 6,880 6,510 103,699 69,993 47,429 5,013 12,330 3,655 1,566 24,850 7,146 6,780 106,743 71,091 48,447 5,013 12,330 3,655 1 ,646 26,509 7,338 6,957 109,715 70,964 48,394 4,940 12,330 3,655 1 ,645 29,188 7,528 7,158 110.413 72,537 50,063 4,880 12,330 3,655 1 ,609 27,830 8,055 7,659 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969 as of gold by the IMF to the United States to acquire income-earning assets. follows: liquid, $17 million, and other, $84 million. 2 Includes BIS and European Fund. 11 Data on the second line differ from those on first line because cer- 3 Derived by applying reported transactions to benchmark data; tain accounts previously classified as "official institutions" are included breakdown of transactions by type of holder estimated 1962-63. with "banks"; a number of reporting banks are included in the series for 4 Excludes notes issued to foreign official nonreserve agencies. the first time; and U.S. Treasury securities payable in foreign currencies 5 Includes long-term liabilities reported by banks in the United States issued to official institutions of foreign countries have been increased in and debt securities of U.S. Federally-sponsored agencies and U.S. cor- value to reflect market exchange rates as of Dec. 31, 1971. porations. 6 Includes short-term liabilities payable in dollars to commercial banks NOTE.—Based on Treasury Dept. data and on data reported to the abroad and short-term liabilities payable in foreign currencies to commer- Treasury Dept. by banks and brokers in the United States. Data correspond cial banks abroad and to "other foreigners." generally to statistics following in this section, except for the exclusion 7 Includes marketable U.S. Treasury bonds and notes held by commer- of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign cial banks abroad. official nonreserve agencies, the inclusion of investments by foreign 8 Principally the International Bank for Reconstruction and Develop- official reserve agencies in debt securities of U.S. Federally-sponsored ment and the Inter-American and Asian Development Banks. agencies and U.S. corporations, and minor rounding differences. Table 9 Data on the two lines shown for this date differ because of changes excludes IMF "holdings of dollars," and holdings of U.S. Treasury letters in reporting coverage. Figures on first line are comparable with those of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 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 l i n e s E W u e r s o t p e e r n 1 Canada A re m L p e u a r t b i i l n c i a c n s 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. 4 15,975 4 7,074 1,624 1,888 4,552 546 291 4 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3. /23,786 13,620 2,951 1,681 4,713 407 414 123,775 13,615 2,951 1,681 4,708 407 413 1971 5. /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972 61.526 34,197 4,279 1,733 17,577 777 2,963 1973—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 r43,270 3,945 2,446 10,479 838 2,893 Feb.... 64,099 r42,391 4,262 2,743 10,878 1,000 2,825 Mar. .. 65.527 r42,772 4,195 2,887 11,631 1,249 r2,793 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 July. . 71,091 43,002 4,127 3,951 15,209 2,055 2,749 Aug.P. . 70,964 42,286 3,953 4,127 15,526 2,272 2,800 Sept. p. 72,537 42,675 3,819 4,356 16,184 2.850 2,653 1 Includes Bank for International Settlements and European Fund. to official institutions of foreign countries have been increased in value by 2 Includes countries in Oceania and Eastern Europe, and Western Euro- $110 million to reflect market exchange rates as of Dec. 31, 1971. pean dependencies in Latin America. 3 See note 9 to Table 5. NOTE.—Data represent short- and long-term liabilities to the official 4 Includes $101 million increase in dollar value of foreign currency institutions of foreign countries, as reported by banks in the United States; liabilities resulting from revaluation of the German mark in Oct. 1969. foreign official holdings of marketable and nonmarketable U.S. Treasury s 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 r o y r g i a n n te iz r a n t a i t o io n n s6 a l Payable in dollars IMF Dep osits Total 1 Total Dem D an e d p os T it i s m e2 b T i c r c l e U l e a s r a t . t S e s i a u f s . i n r 3 - d y s O l t h i e a t o r h b r m e . t 4 r - P f r o a e c r n y i u e n a c r i i b g - e l n s e in m g v o e es n ld t t - s Total Demand Time2 b T i c r l c e U l e s a r a . t t S s i e a u f . s i n r - d y l s O t i h e a t r o h b m r e . t 4 r - 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 f41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 /55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 155,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 60,689 60,193 8,288 5,596 31,850 14,458 496 1,413 86 202 326 800 66,914 66,253 8,754 5,987 33,702 17,610 660 1,552 80 100 62 1,311 68,100 67,523 9,108 6,614 32,869 18,932 577 1,768 70 93 173 1,431 68,326 67,704 9,849 6,696 31,977 19,182 622 1,962 73 97 373 1,420 69,002 68,405 11,307 6,849 31,886 18,363 597 1,955 101 86 296 1,471 67,043 66,403 10,822 6,792 29,543 19,246 640 1,853 95 92 286 1,380 69,189 68,420 11,473 6,838 30,274 19,438 770 1,693 77 66 232 1,318 72,735 71,969 11,651 6,967 31,444 21,907 766 1,151 96 66 227 762 74,722 74,016 11,973 7,302 32,676 22,064 706 1,109 60 60 209 780 78,186 77,533 11,671 7,603 33,983 24,275 653 1,333 95 54 46 1,138 80,652 79,860 12,856 8,244 34,038 24,722 792 1,593 106 64 91 1,332 83,775 83,109 12,762 8,820 34.178 27,348 666 1,679 121 60 51 1,488 86,601 85,855 11,807 9,096 33.179 31,773 746 1 ,861 81 68 146 1,567 87,452 86,756 12,762 9,234 33,473 31,287 696 1 ,900 128 69 75 1,629 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 Payable Total Dema D nd e posi T ts i me 2 T b c i r c l e U e a l r s a t . t e s S i a u s f . n i r 3 - d y s O l t h i e a t o r h b r m e . t 4 r - f r o e c r n u i e n c r i i - g e n s Total Dema D nd ep osi T ts i me 2 T bi r c c l U e e a ls r a t . t S e s a i s u . f n i r 3 - d y s O t l h i e t a o r h b r m e t .4 r - 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 /40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 \40,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 J53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 153,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32.311 3,177 59,275 8,203 5,394 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 65,361 8,674 5,887 33,640 16,499 660 45,174 1,633 3,226 33,554 6,634 66,332 9,038 6,520 32,696 17,501 577 45,212 1,811 3,846 32,613 6,814 66,364 9,776 6,599 31,604 17,763 622 43,791 2,035 3,802 31,529 6,298 67,047 11,206 6,763 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 65,191 10,728 6,701 29,257 17,865 640 41,556 2,379 3,705 29,152 6,192 67,496 11,396 6,773 30,042 18,516 770 41.991 2,407 3,703 29,917 5,836 71,584 11,554 6,902 31,217 21,145 766 43,412 2,631 3,800 31,064 5,790 73,613 11,913 7,242 32,467 21,284 706 45,184 2,920 3,949 32.312 5,877 76,741 11,576 7,550 33,937 23,389 653 46,031 2,352 4,025 33,731 5,796 79,059 12,750 8,181 33,947 23,251 792 47,429 2,642 4,277 33,745 6,638 81,913 12,102 8,589 34,128 26,429 666 48,447 2,561 4,463 33,749 7,547 84,739 11,726 9,029 33,033 30,207 746 48,394 2,472 4,447 32,687 8,660 85,552 12,635 9,165 33,398 29,658 696 50,063 2,824 4,288 32,955 9,870 To banks 10 To other foreigners TTTooo bbbaaannnkkksss Payable in dollars aaannnddd ooottthhheeerrr fffooorrreeeiiigggnnneeerrrsss::: Total PPPaaayyyaaabbbllleee iiinnn Total Dema D nd ep osi T ts i me 2 T b c i r c l e U e l a r s a . t t s S i e a u f . s n i r - d y ss OO ll tt hh ii ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- Total Dema D nd ep osi T ts i me 2 T b c r i c l e U e l a r s a . t t s S i e a u f . s n i r - d y ss OO ll tt hh ii ee aa tt oo rr hh bb rr mm ee .. tt 44 rr -- fff r ooo e ccc rrr uuu n eee rrr c iii --- i ggg e nnn s 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 J21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 /13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 19,275 14,340 4.65S 405 5 9,272 4,610 1,954 2,110 65 481 325 20,187 14,498 5,070 436 8 8,984 5,156 1,972 2,226 77 881 533 21,120 15,509 5,250 479 7 9,774 5,162 1,977 2,196 76 912 449 22,574 16,766 5,734 474 8 10,550 5,313 2,007 2,323 67 915 495 23,127 17,178 6,941 515 11 9,710 5,481 2,140 2,336 68 936 469 23,635 17,527 6,329 517 14 10,668 5,595 2,020 2,479 91 1,005 513 25,505 19,050 6,857 526 32 11,635 5,813 2,131 2,543 93 1,045 642 28,172 21,389 6,572 511 54 14,251 6,144 2,351 2,591 98 1,104 639 28,429 21,481 6,601 683 63 14,133 6,369 2.392 2,610 92 1,274 579 30,710 23,674 6,913 795 82 15,884 6,511 2,312 2,730 124 1,345 526 ' 31,629 ' 24,185 7,692 1,002 95 r 15,397 6,779 2,415 2,902 107 1,355 665 33,466 25,970 7,108 1,160 204 17,499 6,957 2,432 2,967 175 1,383 539 36,346 28,569 6,861 1 ,426 200 20,083 7,158 2.393 3,156 145 1,464 618 35,489 27,261 7,089 1 ,620 258 18,294 7,659 2,722 3,258 185 1 ,495 568 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. • NOVEMBER 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 AArreeaa aanndd ccoouunnttrryy Dec.r Dec. Jan. Feb. Mar. Apr. May r June July Aug.f Sept. Europe: Austria 272 161 210 279 327 248 298 310 482 528 595 Belgium-Luxembourg 1,094 1,483 1,593 1,662 1,572 1,795 1,739 1,827 1,819 1,928 1 ,924 Denmark 284 659 527 456 380 358 261 266 239 251 268 Finland 163 165 178 160 169 140 143 174 203 229 219 France 4,441 3,483 3,241 2,967 2,852 2,767 3,018 3,425 3,763 3,611 3,561 Germany 5,346 13,227 12,307 12,357 12,275 13,035 13,778 13,528 12,602 11,873 9,337 Greece 238 389 262 238 343 285 239 232 222 298 293 Italy 1,338 1,404 1,195 1,119 2,243 1,386 1,435 1,281 1,327 1,101 3,138 Netherlands 1,468 2,886 2,522 2,502 2,547 2,507 2,407 2,352 2,232 2,225 2,498 Norway 978 965 961 962 993 923 923 911 878 894 1 ,023 Portugal 416 534 482 486 450 450 452 411 429 422 435 Spain 256 305 264 304 267 289 365 471 362 303 377 Sweden 1,184 1,885 1,975 1,973 1,733 1,475 1,350 1,211 1,160 1,049 1 ,096 Switzerland 2,857 3,377 3,281 3,513 3,792 4,228 5,137 6,383 7,209 7,813 8,061 Turkey 97 98 221 146 96 92 95 125 134 106 100 United Kingdom 5,011 6,148 6,440 6,186 7,392 7,697 8,792 8,533 8,294 8,969 8,709 Yugoslavia 117 86 77 94 78 82 86 100 106 100 151 Other Western Europe1 1,483 3,352 3,125 3,007 2,946 3,003 2,494 2,701 2,851 2,833 3,249 U.S.S.R 11 22 26 20 29 52 28 27 27 26 40 Other Eastern Europe 81 110 92 96 122 95 104 126 133 147 149 Total 27,136 40,742 38,982 38,525 40,605 40,905 43,145 44,247 44,472 44,706 45,222 Canada 3,432 3,627 3,923 4,217 3,640 4,350 3,983 3,550 3,595 3,250 3,754 Latin America: Argentina 631 914 847 895 1,001 1,058 1,180 1,365 1,238 1,175 1 ,105 Bahamas 2 540 824 593 1,011 2,016 1,335 1 ,945 1,486 1,548 3,203 1,241 Brazil 605 860 819 961 837 774 731 782 778 817 873 Chile 137 157 178 174 185 224 191 238 277 251 266 Colombia 210 247 219 238 238 227 227 217 267 290 293 Cuba 6 7 7 8 7 6 6 6 7 6 7 Mexico 831 1,284 1,323 1,343 1,369 1,374 1,416 1,410 1,409 1 ,611 1 ,643 Panama 167 279 281 326 401 408 551 552 569 448 511 225 135 144 154 159 160 162 166 197 184 182 Uruguay 140 120 120 115 121 121 132 121 122 115 120 Venezuela 1,078 1,468 1,460 1,636 1,736 2,297 I 2,248 2,708 2,599 2,999 3,217 Other Latin American republics 860 880 947 1,026 1,100 1,144 1,053 1,073 1 ,187 1,073 1 ,216 Netherlands Antilles and Surinam 86 71 69 61 69 63 95 124 92 103 123 Other Latin America 44 359 470 792 659 566 424 450 671 825 539 Total 5,560 7,606 7,477 8,741 9,896 9,757 10,249 10,699 10,960 13,100 11,335 Asia: China, People's Rep. of (China Mainland) 39 38 38 39 38 39 39 33 39 40 40 China, Republic of (Taiwan) 675 757 735 715 641 573 620 688 772 842 822 Hong Kong 318 372 389 416 452 453 512 462 470 490 621 India 98 85 152 183 133 177 264 225 172 131 158 Indonesia 108 133 186 175 240 305 220 257 863 785 943 Israel 177 327 337 311 302 275 267 256 226 211 217 Japan 15,843 6,954 6,417 7,440 8,307 8,668 9,060 9,419 9,973 9,894 10,118 Korea 192 195 222 204 180 253 234 262 215 277 304 Philippines 438 515 570 604 595 642 731 772 762 715 748 Thailand 171 247 336 471 607 536 517 524 451 403 362 Other 1,071 1,202 1,306 1,196 1,445 1,942 1,886 2,572 3,634 4,272 4,743 Total 19,131 10,826 10,690 11,752 12,940 13,861 14,350 15,470 17,578 18,063 19,076 Africa: Egypt 24 35 72 72 52 68 71 84 91 105 73 Morocco 12 11 11 12 17 15 20 39 54 63 79 South Africa 115 114 97 119 148 83 122 102 170 156 157 Zaire 21 87 42 30 42 43 52 58 46 46 43 Other 768 808 837 1,044 1,335 1,500 1,703 1,911 2,042 2,258 2,895 Total 939 1,056 1,059 1,277 1,593 1,709 1,968 2,193 2,403 2,627 3,247 Other countries: Australia 3,027 3,131 2,986 2,917 2,849 2,979 2,980 2,831 2,848 2,926 2,847 All other 51 59 74 66 60 52 68 69 58 68 72 Total 3,077 3,190 3,059 2,984 2,909 3,031 3,047 2,900 2,906 2,994 2,918 Total foreign countries 59,275 67,047 65,191 67,496 71,584 73,613 76,741 79,059 81 ,913 84,739 85,552 International and regional: International3 951 1,627 1,536 1,404 863 840 1,038 1,250 1 ,328 1,512 1 ,534 Latin American regional 307 272 257 228 226 217 226 222 248 256 261 Other regional* 156 57 61 61 62 51 69 122 102 93 103 Total 1,413 1,955 1,853 1,693 1,151 1,109 1,333 1,593 1 ,679 1 ,861 1 ,900 Grand Total 60,689 69,002 67,043 69,189 72,735 74,722 78,074 80,652 83,592 86,601 87,452 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1972 1973 1974 1972 1973 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus 2 3 9 19 10 Kuwait 16 39 36 28 Iceland 9 9 12 8 Laos 3 2 3 3 Ireland, Rep. of 15 17 22 62 53 Lebanon 60 55 55 62 Malaysia 25 54 59 58 Other Latin American republics: Pakistan 58 59 93 105 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 Dominican Republic 91 114 104 118 137 Singapore 45 77 53 141 Ecuador 62 121 109 92 90 Sri Lanka (Ceylon) 6 5 6 13 El Salvador 83 76 86 90 129 Syria 6 4 39 5 Guatemala 123 132 127 156 245 Vietnam 185 135 98 88 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 Paraguay 17 22 26 29 40 Ethiopia (incl. Eritrea) 29 57 75 79 Trinidad & Tobago 15 20 17 17 21 Ghana 11 10 28 20 Kenya 14 23 19 23 Other Latin America: Liberia 25 30 31 42 Bermuda (2) (2) 127 242 201 Libya 296 393 312 331 British West Indies 23 36 100 109 Nigeria 56 85 140 78 Southern Rhodesia 2 2 2 Other Asia: Sudan 5 3 3 3 Afghanistan 17 25 19 22 11 Tanzania 6 11 16 12 Bahrain 18 24 23 24 11 Tunisia 7 10 11 7 Burma 5 2 17 12 Uganda 10 7 19 6 Cambodia 2 3 3 2 4 Zambia 7 28 37 22 Iran 88 93 114 124 243 Iraq 9 10 26 101 All other: Jordan 2 4 4 6 New Zealand 27 39 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 i 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 11,018 580 439 93 259 87 165 63 32 136 1 32 10 1973—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 July 1,677 984 693 319 299 75 171 56 233 142 2 77 13 Aug 1 ,516 1,005 511 118 316 77 170 60 47 142 1 77 13 Sept 1,384 920 464 75 316 73 170 60 47 123 1 50 13 1 Excludes central banks, which are included with "Official institutions." 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1974 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug p Sept.f Europe: 7 7 7 7 7 7 7 7 7 7 9 9 10 165 165 165 235 235 260 260 260 260 260 260 260 250 37 37 38 34 33 32 34 33 35 34 35 34 34 United Kingdom 247 290 400 423 437 450 439 460 470 427 430 443 462 Other Western Europe 85 85 85 86 91 91 90 89 87 89 97 101 76 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 546 588 700 789 808 845 835 854 826 822 836 852 857 560 560 567 582 597 832 847 848 849 849 851 756 706 Latin America: Latin American republics 9 9 11 11 11 1111 11 11 11 11 11 11 22 3 3 3 3 3 3 3 3 5 5 5 5 6 Total 12 12 14 14 14 14 14 14 16 16 16 16 28 Asia: Other Asia 5,95 1 0 1 5,95 1 0 1 5,14 1 3 1 4,55 1 2 1 4,06 1 6 1 3,71 1 8 1 3,70 1 3 1 33,,5533 11 11 11 3,49 1 9 2 3,49 1 8 2 3,49 1 7 2 3,49 1 8 2 3,49 1 7 2 Total 5,961 5,961 5,154 4,563 4,077 3,729 3,714 3,542 3,510 3,510 3,509 3,510 3,509 158 158 158 158 158 157 157 157 157 157 156 151 151 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 7,261 7,303 6,617 6,131 5,678 5,602 5,592 5,440 5,383 5,379 5,394 5,310 5,276 International and regional: International 21 6 1 1 20 51 221177 141 174 57 51 102 23 Latin American regional 45 47 47 48 49 49 49 44 41 60 75 71 68 Total 66 53 48 49 69 100 267 185 214 117 126 173 91 7,327 7,356 6,665 6,179 5,747 5,702 5,859 5,625 5,597 5,496 5,520 5,483 5,367 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 Foreign End of period Total Total Total O in f s f t i i c t i u a - l Banksi Others C s t t o o i i a o u n l n l n g t e d - s c - - f A o o a m r c f n c a a f c e o d c e p r e c s t - t - . Other Total w D e i i e t g h p n o e f s r o i s t r s - g c a o u n c n v o r a d i t m n t , i c f e l s e . i e s - , - Other tions eigners paper 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2 1 1 3 3 , , 2 1 7 7 2 0 1 1 2 2 , , 3 3 7 2 7 8 4 3 , , 5 9 0 6 3 9 2 23 2 1 3 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 8 9 4 5 2 5 5 4 4 8 9 1 1 7 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 1 4 1 1 6 6 3 3 2 2 , , 9 97 7 5 0 2 2 , , 5 5 3 3 8 5 3 3 , , 2 2 7 6 6 9 3 3 , , 2 2 2 0 6 4 2 2 , , 6 4 5 7 7 8 8 8 4 4 6 6 4 4 4 4 1 1 2 2 2 2 3 3 1 18 8 2 2 1973—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—Jan. . 21,083 20,281 7,410 303 4,429 2,678 4,386 4,107 4,377 802 467 162 173 Feb.. 22,970 22,126 7,947 303 4,992 2,652 4,426 4,554 5,199 844 594 121 129 Mar. 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 29,736 28,853 9,960 363 6,384 3,213 5,080 6,598 7,214 884 611 113 160 June 32,235 31,278 11,498 386 7,759 3,353 5,106 7,577 7,097 957 687 130 141 July. 33,513 32,510 10,921 475 6,860 3,586 5,151 9,162 7,276 1,003 626 207 170 Aug. 35,029 34,224 11,628 448 7,809 3,371 5,293 9,449 7,853 805 461 180 164 Sept. 33,889 32,971 10,645 523 6,751 3,371 5,243 9,520 7,563 918 468 217 233 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

NOVEMBER 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. Dec. Jan. Feb. Mar. Apr. May r June*" July Aug.*5 Sept." Europe: Austria 8 11 14 36 20 40 32 104 18 72 17 Belgium-Luxembourg 120 148 134 143 216 188 155 231 267 208 160 Denmark 59 48 50 60 76 57 68 65 45 49 51 Finland 118 108 106 93 97 115 127 134 150 151 146 France 330 621 649 682 743 721 624 731 703 760 637 Germany 321 311 342 382 395 355 441 422 372 379 342 Greece 29 35 41 36 37 47 48 49 61 66 59 Italy 255 316 313 330 482 507 512 572 437 441 354 Netherlands 108 133 139 147 174 169 202 212 165 112 130 Norway 69 72 85 91 76 91 96 91 103 136 113 Portugal 19 23 25 25 37 29 33 32 30 24 26 Spain 207 222 208 180 284 318 322 404 392 382 253 164 153 135 106 121 132 95 117 119 139 159 Switzerland 125 176 240 338 270 327 417 663 386 354 377 Turkey 6 10 11 9 16 18 8 10 26 19 15 United Kingdom 997 1,456 1,490 1,621 2,009 1,627 2,179 2,363 2,260 2,513 2,112 Yugoslavia 22 10 9 15 12 13 25 20 26 25 28 Other Western Europe 20 27 19 20 22 28 55 26 19 22 18 U.S.S.R 41 46 29 36 33 30 38 47 35 30 21 Other Eastern Europe 49 59 64 65 70 65 95 84 105 106 119 Total 3,067 3,985 4,104 4,416 5,190 4,875 5,574 6,376 5,720 5,985 5,136 1,914 1,960 1,880 2,037 2,243 2,191 2,363 2,195 2,340 2,108 2,021 Latin America: Argentina 379 498 521 539 679 686 645 672 685 703 695 Bahamas 1 519 875 579 1,043 1,289 1,126 1,944 1,887 1,558 2,084 2,471 Brazil 649 900 953 958 1,114 1,180 1,316 1,477 1,507 1,521 1,534 Chile 52 151 136 155 180 193 175 187 224 231 250 418 397 425 428 459 467 485 519 595 679 665 Cuba 13 12 11 11 13 13 13 13 12 13 14 1,202 1,370 1,344 1,418 1,426 1,627 1,655 1,720 1,770 1,833 1,711 Panama 244 266 294 297 345 390 406 386 393 395 404 Peru 145 178 186 184 194 224 265 281 353 421 408 Uruguay 40 55 58 51 44 38 38 40 59 50 47 383 517 482 510 586 627 558 606 644 641 627 Other Latin American republics 388 490 542 546 600 617 625 672 686 696 712 Netherlands Antilles and Surinam 14 13 17 19 29 20 27 41 38 56 64 Other Latin America 36 140 356 461 268 281 191 298 234 344 249 Total 4,480 5,863 5,906 6,621 7,226 7,489 8,342 8,798 8,758 9,667 9,852 Asia: China, People's Rep. of (China Mainland) 1 31 24 19 27 19 18 23 28 22 9 China, Republic of (Taiwan) 194 140 119 147 183 231 318 357 406 446 465 Hong Kong 93 147 169 189 170 179 167 208 200 271 243 India 14 16 16 15 19 18 25 18 20 34 17 Indonesia 87 88 105 107 97 71 105 115 117 120 122 Israel 105 166 153 140 165 140 135 158 205 205 210 Japan 4,152 6,400 6,466 6,960 7,857 8,607 9,744 10,838 12,397 12,812 12,378 Korea 296 403 432 477 498 555 638 620 641 706 733 Philippines 149 181 189 182 197 228 263 302 295 348 340 Thailand 191 273 322 364 405 434 393 421 427 429 438 Other 300 394 466 560 521 671 662 713 820 681 671 Total 5,584 8,238 8,463 9,159 10,138 11,153 12,467 13,773 15,556 16,073 15,625 Africa: Egypt 21 35 42 40 42 44 62 66 68 83 97 Morocco 4 5 4 4 21 9 4 5 14 10 10 South Africa 143 129 133 134 131 153 206 202 213 238 243 Zaire 13 60 56 67 61 79 72 91 93 97 94 Other 118 159 178 175 210 192 223 273 286 275 311 Total 299 388 413 420 466 477 567 637 675 702 755 Other countries: Australia 291 243 279 268 328 318 357 383 400 415 422 All other 40 43 37 49 64 59 66 71 64 77 76 Total 330 286 316 317 392 377 423 453 464 492 498 Total foreign countries 15,674 20,720 21,082 22,969 25,655 26,563 29,735 32,234 33,513 35,028 33,886 International and regional 3 1 1 1 1 1 1 1 1 1 2 Grand total 15,676 20,721 21,083 22,970 25,656 26,564 29,736 32,235 33,513 35,029 33,889 i Includes Bermuda through Dec. 1972. their own account or for account of their customers in the United States; NOTE.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities. foreigners, where collection is being made by banks and bankers for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 1974 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Pay able in do liars EE ppee nn rr dd ii oo oo dd ff TToottaall Loan s to— O lo t n h g e - r P f c o a u r y r i e r n a i e b g n l n e - U K d n i o n i m t g e - d E O u t r h o e p r e Canada A L m a e t r i i n c a Japan O A t s h i e a r c o t o r t A i n h e l n e s l r - 2 Official Other term cies Total institu- Banks 1 foreign- claims tions ers 1970 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 1972J ........ / 1 4 5 , , 9 0 5 2 4 9 4 4 , , 5 5 3 5 9 5 8 8 3 3 6 3 4 4 3 3 0 0 3 3, , 2 2 8 7 9 6 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 3 1 5 9 3 9 88 0 1 0 5 5 0 1 3 4 1973—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 Apr.... . 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 July r. ., 7.027 6,415 1,468 891 4,055 545 67 243 1; 583 498 2,524 261 1,400 516 Aug.". . . 7,002 6,395 1,434 895 4,066 539 68 285 1,527 503 2,511 269 1,399 509 Sept.''. . . 6,927 6.314 1,392 834 4.088 542 71 265 1,510 543 2,463 247 1.397 502 1 Excludes central banks, which are included with "Official institutions." reporting coverage. Figures on the first line are comparable in coverage 2 Includes international and regional organizations. with those shown for the preceding date; figures on the second line are 3 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e - s Sales c N h s a e a t s l e e p s s u o r r - c P ha u s r e - s Sales c N h s a e a t s l e e p s s u o r r - ch P a u s r e - s Sales c N h e s a t a s l e e p s s u o r r regional Total Official Other 197 1 1,672 130 1,542 1,661 -119 14.593 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.-Sept -812 -855 -33 11.536 10,111 1,425 770 2,275 -1,505 1,567 1,375 192 1973—Sep t 40 20 20 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 -487 -506 19 1,336 1,359 -23 144 209 -65 159 144 15 1974—Ja n -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 A M p a r y -2 -2 34 8 -8 2 2 9 -1 -5 5 7 2 -1 - 7 7 1 -5 2 0 0 1.0 9 6 0 0 3 8 8 4 5 4 2 21 5 6 1 1 8 0 9 3 3 1 2 5 3 4 -2 -6 1 4 9 1 17 8 3 9 1 1 7 5 4 5 -2 3 4 June -101 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 July 23 9 14 14 1,048 1,054 -6 94 251 -158 128 116 12 A Se u p g t .* ." .... -1 -3 1 7 6 -8 4 2 7 - - 3 8 3 4 - - 6 73 0 -1 2 1 7 1 1 , ,3 3 9 6 8 0 1 1 , ,1 1 8 3 0 0 2 1 6 8 9 0 7 5 7 9 2 1 1 5 6 3 - - 1 7 5 6 7 1 1 4 4 3 6 1 9 1 9 7 4 2 4 9 t 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

NOVEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Other Total Latin Period chases Sales chases or France many lands land King- Europe EEuurrooppee Canada America Asia Other i sales (—) dom 1971 11,626 10,894 731 87 131 219 168 -49 71 627 -93 37 108 52 1972 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 1974—Jan.-Sept." 5.819 5,348 472 168 54 303 117 -91 27 578 —22 -40 -61 15 1973—Sept 948 734 214 63 6 18 54 15 14 169 * 27 21 -3 Oct 1,369 11,,227722 96 6 -7 5 -34 68 25 62 -26 16 41 4 Nov 1,482 11,,008888 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 * 1 -9 1 Mar 896 846 49 14 -26 40 24 14 25 91 -21 9 -29 -1 Apr 575 559 16 22 17 35 -5 -14 -35 19 -10 2 3 2 May 576 591 -15 18 7 29 5 -36 -5 19 -7 -15 -14 9 June 521 513 8 -15 8 33 11 -18 -3 16 13 -7 -15 2 July 507 508 -1 13 5 39 -9 -48 3 3 10 -2 -14 2 Aug." 579 500 79 19 18 16 15 9 -11 65 14 9 -10 * Sept." 446 443 4 -9 17 21 -6 -21 -3 -I 6 4 -6 1 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 l e a t n h 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 r t o a p l e Canada Am La e t r i i n c a Asia Africa co O u t n h t e r r ie s I r n e t g l. i on an a d l 1971 703 15 35 -1 216 327 39 631 37 19 -2 * -21 39 1972 1,881 336 77 74 135 367 315 1,303 82 22 323 2 * 148 1973 1,948 201 -33 -19 307 275 473 1,204 49 44 588 * 10 52 1974—Jan.-Sept.'' 953 82 34 186 82 308 -53 640 27 20 -35 * 10 291 _ J _1 1 1973—S O e c p t t -1 -2 1 53 2 * * * 1 46 -1 1 4 4 121 8 2 6 6 4 1 11 1 * * * * -1 -3 0 9 3 Nov -138 4 11 -2 28 76 5 122 -21 3 -209 * * -33 Dec — 19 9 10 4 37 60 32 152 * 16 -183 * -3 1974—J F a e n b -14 8 4 9 31 25 * * * 23 * 1 4 1 5 7 - - 1 9 5 1 3 5 0 9 -2 1 4 -5 1 - - 1 1 1 0 9 4 * * * * -47 1 8 Mar 139 1 * -2 6 -79 -6 -81 -1 6 -1 * * 215 Apr 200 60 3 * 8 23 17 111 4 -1 * * * 86 May 66 10 * * 28 19 1 59 3 5 3 * * -3 J J u u n ly e 2 -5 4 2 —5 l 2 3 1 7 1 2 6 1 2 5 6 3 4 6 - - 1 1 7 1 1 1 8 0 5 0 1 1 4 5 -3 7 • * 10 • -12 5 8 6 Aug." 190 1 * 1 -1 29 -9 21 2 4 199 * * -36 Sept.*3.... 117766 1 1 -1 2 5544 -3 5555 4 2 --1155 * 113300 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 period (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 37 311 314 1974— 325 379 Jan.-Sept.".. -1 ,31 1 31 -1 ,341 -454 -1 ,088 -54 243 -5 17 312 339 286 336 1973—Sept.... -25 4 -28 -28 8 -8 * 2 372 405 Oct -240 4 -243 -25 -148 -8 -64 1 1 Nov... -236 9 -245 -47 -89 -6 -104 * * 1973—Mar 310 364 Dec.. .. -50 51 -101 -45 -11 -15 -34 2 3 316 243 290 255 1974—Jan -291 -4 -287 -81 -204 -2 -1 -1 2 333 231 Feb -46 6 -52 -62 -11 -9 32 -4 1 Mar -311 4 -315 -24 -288 -15 10 * 3 1974— Mar. p 384 227 Apr.. .. -185 3 -188 -49 -157 6 12 * * 354 243 May. .. -66 5 -71 -26 -35 -22 10 * 3 June... -108 3 -110 -78 -121 -6 94 1 * July.... -146 1 -147 -63 -108 -1 24 -1 3 NOTE.—Data represent the money credit balances and Aug.". . -128 2 -129 -35 -128 -9 42 -1 1 money debit balances appearing on the books of reporting Sept.".. -32 12 -44 -37 -37 5 20 1 3 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. • NOVEMBER 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 1972—Dec.. 78.202 4,678 2.113 2,565 71.304 11,504 35,773 1,594 22,432 1973—July. 101.081 5,349 2.502 2,847 92.157 14.941 46.243 1,933 29.041 Aug.. 102.309 5,109 2,286 2.823 93.389 15,289 45.964 2,011 30,125 Sept.. 108.296 4,r~ 1.917 2.891 98,886 16,782 48.244 2.147 31.712 Oct.. 111.087 4,802 1,831 2.970 101.789 17.721 49,477 2,239 32,352 Nov.. 117.514 5.811 2.848 2,964 106.221 18.525 52.001 2,120 33,574 Dec. 121.866 4.881 1,882 3.000 112,240 19.207 55,857 2,503 34,673 1974—Jan.. 123.912 4,605 1 .552 3.054 114,703 19,497 57.032 2.733 35.441 Feb.. 127.245 4.417 1,614 2.802 117.765 20.341 57.163 2,957 37.304 Mar.. 136,983 7.775 5,172 2,603 124,033 22.379 60,264 3.030 38,360 Apr.. 139.532 5.989 3,414 2,575 128.455 22,854 62.334 3,629 39,638 May. 145.362 7.882 5.322 2.561 132,066 24.376 64.635 3,645 39,410 June. 146.877 6,843 4.166 2:677 134.413 24,859 64,345 3,560 41.649 July. 145,004 6,523 3.795 2.728 132.771 25,613 61.921 3. 41.549 Payable in U.S. dollars. 1971—Dec.. 39.095 4.501 2.294 2,207 34,041 6,658 17.307 861 9,215 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 1973—July. 62,170 4,774 2,467 2,307 55,990 8,852 30.924 1,122 15.092 Aug.. 63,479 4.502 2,227 2,274 57,599 9.660 30,503 1.191 16,244 Sept.. 66,361 4,386 1,865 2,521 60,362 10,315 31,767 1,186 17.093 Oct.. 68.400 4,356 1,789 2,567 62,461 11,223 32.595 1.223 17,419 Nov.. 73.823 5.340 2.788 2,552 66,772 11,938 35,01$ 1,314 18.502 Dec 79,437 4,427 1,844 2,583 73.244 12,829 39,013 1,587 19,815 1974—Jan... 81.949 4,166 1,515 2.651 76,033 13.253 40,027 1,848 20.905 Feb.. . 83.912 4,032 1,559 2,473 77,963 13,769 40,185 2,024 21.985 Mar.. 92.838 7,370 5, 2,281 83.543 15.776 42,971 1.977 22.818 Apr.. 94,127 5,618 3,367 2,251 86.361 15,954 44,379 2,726 23.302 May. 100,155 7,537 5.274 2,263 90,145 16,874 47,336 2,840 23,101 June. 101,509 6,521 4,116 2,405 92,420 17.357 47,753 2,803 24,507 July. 101,502 6,232 3,746 2.486 92.579 18,367 46,394 2.889 24.929 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 1972—Dec.. 43.467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1973—July. 53,996 2,500 1,492 1,008 49,923 6,274 30,652 646 12,350 Aug.. 52,880 1,877 935 942 49,423 6,849 29,525 677 12,372 Sept.. 55,842 1,473 604 870 52,489 8,022 30,774 659 13,035 Oct.. 57.306 1,833 879 954 53,518 7,970 31,617 685 13,247 Nov.. 61,897 2,230 1,181 1,049 56,808 8,552 33,813 700 13,743 Dec.. 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 Jan... 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 1974—Feb.. 63,585 1,477 616 861 59,792 9,209 34,813 916 14,853 Mar.. 68,076 3,070 2,319 751 63,020 10,706 36,192 887 15,235 Apr.. 68,914 2,713 1,876 837 64,104 10,695 36,765 1,073 15,572 May. 71,935 3,787 2,969 818 65,966 11,759 37,882 889 15,435 June. 71.307 3,731 2,787 943 65,451 11,886 36,408 812 16,346 July. 69.197 3,309 2,468 840 63,71 12,486 34,575 718 15,932 Payable in U.S. dollars. 1971—Dec.. 24.210 2,585 21,277 4,135 12,572 4,571 1972—Dec.. 30j257 2,146 27,664 4,326 17,874 5,464 1973—July. 33,381 2,193 30,464 4,042 20,137 6,286 Aug.. 32,807 1,538 30,569 4,887 19,134 6,549 Sept.. 34,251 1,348 32,062 5,399 19,759 6,904 Oct.. 35,51 1,681 33,062 5,769 20,336 6,956 Nov.. 39,096 2,042 36,218 6,273 22,650 7,296 Dec.. 40,323 1,642 37,816 6,509 23,899 7,409 1974—Jan.. 42,131 1,368 39,932 6,825 25,098 8,010 Feb.. 41,762 1,384 39,409 6,902 24,415 8,093 Mar.. 46,062 2,967 42,212 8,240 25,365 8,608 Apr.. 46,419 2,623 42,771 8,262 25,768 8,741 May. 49,608 3,688 44,784 9,285 26,957 8,542 June. 49,375 3,632 44,618 9,425 26,097 9,097 July. 48,158 3.221 43.798 9,9321 24.698 9.169 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—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 21,307 12,302 9,005 463 1974—Jan... 24,071 2,011 228 1,783 21,581 12,232 9,349 479 Feb.. 25,657 1,882 170 1,713 23,262 13,293 9,969 513 Mar.. 28,444 3,299 1,787 1,512 24,534 14,600 9,934 611 Apr.. 28,776 2,280 802 1,478 25,873 15,496 10,376 623 May. 30,862 3,164 1,697 1,467 26,953 17,029 9,924 744 June. 31,217 2,262 816 1,446 28,168 17,537 10,630 787 July. 230,401 2,238 615 1,623 27,348 16,707 10,640 815 Digitized for FRASERFo r notes see p. A-76 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOVEMBER 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 all currencies, 78.203 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 ....... 1972--Dec. 101.080 4,365 1 ,198 3.166 92.791 14.642 54,134 9.575 14.440 3.925 ....... 1973- 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 . Sept. 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 r63.378 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 Dec. 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 4,517 125.014 21,043 71,948 10.474 21,550 5,324 139.532 6.870 2,368 4,502 127,285 22,469 71,605 11.196 22,015 5,377 145.362 8.105 2,930 5,175 131,366 23,605 74,421 11,404 21.936 5,891 146,876 8,550 3.011 5,539 131,803 23,883 71.889 13,649 22,380 6,524 145,004 10.129 4,373 5,757 128,565 25,279 66,930 13,970 22.386 6,309 July 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. 64,390 3,770 1,034 2,737 58,732 9.219 35,089 7,005 7,419 1,888 1973--July 65,421 4,050 939 3,110 59,280 10.237 35.398 r6,165 7,480 2,091 Aug. 68,610 4,146 1,021 3,125 r62,196 10,627 37,260 6,242 8,067 2,269 . Sept. 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 80,318 4,488 993 3,495 73,221 12,571 43,694 7,327 9,629 2,608 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 Feb. 93,355 6,086 1,924 4,161 84,471 15,041 49,065 8,205 12,159 2,799 94,887 6.316 2,195 4,121 85,673 15,830 48,252 8,792 12,800 2,898 100,579 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 \0,937 13,203 3.992 102,395 9,494 4,160 5,334 89,228 18.404 45,811 11.310 13,703 3,673 July 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. 53,996 1,875 163 1,711 50,707 3,883 30,797 7,793 8,234 1,414 ..1973--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 . Sept. 57,306 2,026 129 1,897 53,475 4,036 >-33,341 7,118 r8,980 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 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 71,935 3,727 749 2,978 66,111 4,890 39,706 9,111 12,404 2,097 71,307 3,744 606 3,138 65,433 4,913 36,828 11,162 12,530 2,130 69,197 3,439 611 2,828 63,557 5,099 34,293 11,643 12,521 2,201 July 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 1972--Dec. 33,803 1,661 148 1,513 31,549 2,316 18,639 5,855 4,738 593 1973--July 32,960 1,846 148 1,698 30,433 2,213 18,566 4,995 4,660 681 • Aug. 34,886 1,866 137 1,729 32,213 2,245 19,836 5,110 5,022 807 . Sept. 35,342 1,831 103 1,727 32,781 2,515 20,195 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 46,323 2,878 384 2,494 42,453 3,234 23,382 7,225 8,612 992 49,255 3,480 724 2,756 44,580 3,083 26,128 7,306 8,064 1,194 48,982 3,516 579 2,937 44,228 3,255 23,794 9,010 8,170 1,238 48,018 3,176 568 2,608 43,528 3,364 22,287 9,550 8,326 1,314 • July 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. 16,391 1,335 14,733 2,691 10,417 1,625 323 1973 -July 19,258 1,315 17,336 3,917 11,623 1,796 408 • Aug. 20,673 1,608 18,464 4,321 12,255 1,887 601 . Sept. 20,698 1,663 18,463 4,591 11,902 1,969 572 21,693 1,559 19,546 4,798 12,973 1,776 588 23,771 1,517 21.803 5,526 14,453 1,824 451 Dec. 24,071 1,848 21,782 5,293 14,569 1,920 441 1974--Jan. 25,657 2,166 23,026 5,617 15,248 2,161 465 Feb. 28,444 2,192 25,692 6,591 16,793 2,309 560 . Mar. 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 31,217 2,854 27,723 7,647 17,146 2,931 639 230,401 3,684 26,037 7.663 15,239 3,134 681 • July 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. • NOVEMBER 1974 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in> custody End of EEnndd ooff UUnniitteedd period Deposits U se . c S u . r T it r i e e a s1 s . Ear g m o a ld r ked ppeerriioodd TToottaall Deposits S in t h e v o r e m r s t t - - Deposits i S n t h e v o r e m r s t t - - KK dd ii oo nn mm gg -- CCaannaaddaa ments1 ments1 1971 294 43,195 13,815 1972 325 50,934 215,530 1969 1,491 1,062 161 183 86 663 534 1973— N O o c v t. . . . . . . 4 4 2 2 0 6 5 5 2 4 , , 9 7 9 6 8 6 21 1 7 7 , , 1 1 2 0 2 4 1 1 9 9 7 7 1 0 / \ 1 1 1 , , , 6 5 1 4 0 4 8 7 1 1 1, , 0 0 6 7 9 9 8 2 7 2 1 1 0 5 2 3 0 7 2 2 1 3 3 7 4 4 3 1 1 6 2 2 8 1 0 3 5 5 7 7 8 2 7 0 4 4 5 4 4 8 3 3 7 Dec.... 251 52,070 17,068 1974—Jan.... 392 49,582 17,044 1972 \ / 2 I, , 9 3 6 7 5 4 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 3 0 4 7 0 4 6 2 8 9 7 1 0 1 2 4 5 8 3 5 6 Feb... 542 50,255 17,039 Mar... 366 51,342 17,037 1973 —Aug 3,422 2,642 82 490 209 1,117 940 Apr. . . 517 52.642 17,026 Sept 3,285 2,571 78 476 161 1,142 892 May. . 429 54,195 17,021 Oct 2,991 2,328 66 451 148 1,063 881 June... 384 54,442 17,014 Nov 3,239 2,602 64 437 136 1,121 922 July... 330 54,317 16,964 Dec 3,184 2,603 37 431 113 1,128 775 Aug... 372 53,681 16,917 Sept... 411 53,849 16,892 1974-—Jan 2,858 2.284 59 365 149 1,091 772 Oct.... 376 54,691 16,875 Feb 3,260 2,624 65 368 203 1,229 868 3,701 3,027 99 358 218 1,373 1,029 1 Marketable U.S. Treasury bills, certificates of in- Mayr.. .. 3 3 , , 5 6 8 8 7 3 2 3 , , 9 0 8 5 1 1 6 7 0 6 3 3 3 3 9 1 2 2 0 2 9 7 1 1 , , 4 4 8 4 6 2 9 9 2 7 2 9 debtedness, notes, and bonds and nonmarketable U.S. Juner.. .. 3,642 3,030 62 369 181 1,419 926 Treasury securities payable in dollars and in foreign July. . .. 3,740 3,193 74 341 133 1,441 829 cur 2 r e T n h c e i e v s. a lue of earmarked gold increased because of the Aug.p 3,443 2,887 49 363 144 1,426 836 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. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in 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 1970—Sept 2,512 1,956 557 4,361 3,756 301 305 Dec 2,677 2,281 496 4,160 3,579 234 348 1971 _Mar 2,437 1,975 462 4,515 3,909 232 374 June 2,375 1,937 438 4,708 4,057 303 348 Sept 2,564 2,109 454 4,894 4,186 383 326 Dec.1 \ J 2 2 , , 7 7 6 0 3 4 2 2 , , 2 30 2 1 9 4 4 6 7 3 5 5 5, , 1 0 8 0 5 4 4 4 , , 4 5 6 3 7 5 2 3 9 1 0 8 2 3 4 3 7 3 1972—Mar 2,844 2,407 437 5,177 4,557 318 302 June 2,925 2,452 472 5,331 4,685 376 270 Sept 2,933 2,435 498 5,495 4,833 432 230 Dec.1i / 1 3 3 , , 1 5 1 3 9 6 2 3 , , 6 0 3 2 5 4 4 5 8 1 4 1 6 5 , , 3 72 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 4,695 3,795 900 10,608 9,642 412 554 June?' 5,374 4,351 1,024 11,289 10,323 436 530 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

NOVEMBER 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. Sept. Dec. Mar. June" Dec. Sept. Dec. Mar. June" Europe: Austria 2 2 3 4 12 19 15 17 16 17 Belgium-Luxembourg 83 129 131 221 387 73 112 106 153 139 Denmark 7 18 9 17 18 29 21 46 37 27 Finland 4 7 7 8 9 25 31 44 42 80 France 167 165 168 161 204 231 283 310 413 537 Germany, Fed. Rep. of 164 200 236 238 214 195 265 284 337 345 Greece 15 33 40 21 28 35 52 51 87 76 Italy 121 108 116 136 146 202 201 237 327 402 Netherlands 109 115 134 123 114 84 119 118 111 133 Norway 14 10 9 9 9 16 21 18 22 36 Portugal 4 12 13 24 17 19 24 50 112 101 Spain 81 79 77 68 56 157 169 244 414 432 Sweden 13 32 48 43 52 57 53 71 74 106 Switzerland 105 142 103 94 114 82 67 101 90 75 Turkey 4 11 18 26 28 48 17 34 41 46 United Kingdom 1,107 857 940 1,129 1,205 1,223 1,544 1,559 1,846 1,871 Yugoslavia 7 22 28 31 36 12 21 49 30 41 Other Western Europe 2 3 3 3 6 12 12 15 19 23 Eastern Europe 3 24 31 26 31 42 73 104 79 97 Total 2,013 1,969 2,115 2,384 2,687 2,561 3,100 3,457 4,248 4,582 Canada 215 236 255 320 294 965 1,341 1,251 1,532 1,579 Latin America: Argentina 29 24 38 49 52 79 65 75 94 94 Bahamas1 391 364 419 206 278 662 746 633 765 1,007 Brazil 35 42 64 78 125 172 208 230 410 523 Chile 18 13 20 6 9 34 34 42 78 64 Colombia 7 8 9 18 22 39 43 40 44 51I Cuba 1 * * * * 1 1 1 1 Mexico 26 36 44 68 69 181 185 235 260 262 Panama 18 17 13 14 19 85 102 120 178 187 Peru 4 10 15 17 11 36 37 49 67 61 Uruguay 7 2 2 3 2 4 5 5 6 5 Venezuela 21 24 50 69 60 92 104 143 143 173 Other L.A. republics 45 58 67 66 91 95 127 134 172 172 Neth. Antilles and Surinam 10 7 6 5 6 13 9 12 12 16 Other Latin America 4 20 22 37 59 34 105 214 158 138 Total 615 625 769 635 803 1,527 1,771 1,932 2,386 2,754 Asia: China, People's Republic of (China Mainland) 32 36 42 20 39 * 48 11 8 3 China, Rep. of (Taiwan) 26 33 34 53 74 65 77 120 184 119 Hong Kong 12 18 41 24 19 33 44 47 65 68 India 7 7 14 14 13 34 32 37 36 38 Indonesia 16 15 14 13 22 48 52 54 51 67 Israel 19 11 25 31 39 31 28 38 38 37 Japan 224 348 294 374 374 468 633 821 1,142 977 Korea 21 20 37 38 44 67 55 105 109 124 Philippines 16 17 17 9 19 59 70 73 87 86 Thailand 5 6 6 7 7 23 28 28 53 54 Other Asia 152 183 239 363 527 206 207 238 260 323 Total 530 694 763 947 1,177 1,035 1,274 1,571 2,034 1,896 Africa: Egypt 32 11 25 48 36 16 28 18 15 17 South Africa 8 6 14 22 24 52 60 62 69 85 Zaire 1 19 19 21 15 8 19 18 20 17 Other Africa 62 97 128 134 158 93 95 127 162 203 Total 104 134 187 224 233 170 202 225 266 321 Other countries: Australia 45 94 118 134 94 83 90 97 110 117 All other 14 9 12 22 24 23 22 25 31 39 Total 59 103 130 156 117 107 111 123 142 157 International and regional * * * 29 63 1 * 1 1 1 Grand total 3,536 3,760 4,219 4,695 5,374 6,366 7,800 8,558 10,608 11,289 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. • NOVEMBER 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 t a e h t r i e n i r c a Japan O A t s h i e a r Africa o A th l e l r 1970—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 Dec.1 / \ 3 3 , , 1 1 3 5 8 9 3 3 , , 1 1 1 1 8 8 1 1 2 2 8 8 7 7 0 0 5 5 7 7 6 6 1 7 1 1 7 7 4 4 6 6 0 0 6 6 5 5 2 3 1 1 4 3 1 6 3 3 2 2 7 5 8 8 6 6 8 8 5 4 1972—Mar 3,093 3,191 129 713 787 175 60 665 137 359 81 85 June 3,300 3,255 108 713 . 797 188 61 671 161 377 86 93 Sept 3,448 3,235 128 695 805 177 63 661 132 389 89 96 Dec. i / 3,540 3,370 163 715 833 184 60 659 156 406 87 109 \ 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 3,924 4,045 370 759 988 194 81 796 123 469 119 147 June?j 3,673 4,037 362 727 1,008 184 137 734 122 492 123 148 i Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. OPEN MARKET RATES (Per cent per annum) Germany, Switzer- Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks' day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money3 60-90 money 5 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—Oct 6.56 6.54 11.37 10.75 10.53 9.50 10.99 7.00 10.57 5.25 7.93 5.25 Nov 6.48 6.56 13.38 11.76 8.80 9.50 10.96 7.00 11.30 5.29 7.88 5.25 Dec 6.39 6.58 13.74 12.41 9.57 9.46 11.14 7.00 11.89 6.41 8.75 5.40 1974—Jan 6.31 6.50 13.67 12.09 10.36 9.25 13.63 7.00 10.40 6.50 9.36 6.00 Feb 6.10 6.49 13.63 11.94 8.96 9.50 12.48 7.00 9.13 6.50 9.73 6.00 Mar 6.24 6.50 14.39 11.95 11.31 9.50 11.88 7.00 11.63 6.00 9.07 6.00 Apr 7.18 6.93 13.20 11.53 10.00 9.50 11.81 5.63 5.33 6.64 9.86 6.50 May 8,22 7.48 13.31 11.36 10.72 9.50 12.90 6.63 8.36 7.00 9.00 6.50 June 8.66 8.36 12.61 11.23 10.58 9.50 13.59 5.63 8.79 7.00 8.98 6.50 July 8.88 8.52 13.21 11.20 8.70 9.50 13.75 5.63 9.13 7.50 8.57 7.00 Aug 8.76 8.83 12.80 11.24 11.11 9.50 13.68 5.63 9.05 7.50 7.09 7.00 Sept 8.70 8.84 12.11 10.91 10.69 9.50 13.41 5.63 9.00 7.42 5.08 7.00 Oct 88..6677 88..5566 1111..9955 1100..9933 1100..8811 99..5500 55..6633 8.88 77..3388 77..8811 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 $28,433 million and $28,421 million, respectively, on July 31, 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

NOVEMBER 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 11.50 Sept. 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 f 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 5l/i per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1970. 111.36 3.8659 2.0139 95.802 13.334 18.087 27.424 13.233 239.59 .15945 .27921 1971, 113.61 4.0009 2.0598 99.021 13.508 18.148 28.768 13.338 244.42 .16174 .28779 1972 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973. 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1973—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 Oct 130.92 5.4068 2.5939 101.727 16.592 21.131 38.571 12.416 233.30 .14992 .33404 Malaysia Mexico Nether- New Norway Portugal South Spain Sweden Switzer- United Period (dollar) (peso) lands Zealand (krone) (escudo) Africa (peseta) (krona) land Kingdom (guilder) (dollar) (rand) (franc) (pound) 1970. 32.396 8.0056 27.651 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1971. 32.989 8.0056 28.650 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972. 35.610 8.0000 31.153 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1973. 40.988 8.0000 35.977 136.04 17.406 4.1080 143.88 1.7178 22.970 31.700 245.10 1973-—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 Oct 41.560 8.0000 37.639 129.95 18.165 3.9246 142.75 1.7422 22.683 34.528 233.29 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 • NOVEMBER 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 geria Argen- Aus- Aus- Bel- Canada Rep. of Den- EEggyypptt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 791 82 64 85 1971. 41,160 4,732 10,206 26,220 192 90 259 729 1,544 792 80 64 85 1972. 44,890 5,830 10,487 28,575 208 152 281 792 1,638 834 87 69 92 1973—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 Apr.. . 6,478 11,652 231 169 312 882 1,781 927 97 77 103 May. . >•6,478 11,652 231 169 312 882 1,781 927 97 77 103 June.. ^49,835 '6,478 11,652 P31,705 231 169 312 882 1,781 927 97 77 103 July... r6,478 11,652 231 169 312 882 1,781 927 97 76 Aug.. . 6,478 11,652 231 169 312 882 1,781 927 97 76 Sept.2'. 6,478 11,652 223311 888822 11,,778811 992277 7766 Ger- End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb- Libya Mexi- Netherperiod Fed. anon lands Rep. of 197 0 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 197 1 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 197 2 3,826 4,459 133 264 142 156 3,130 801 94 350 4 93 188 2,059 1973—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 89 115 388 103 198 2,294 Nov.. 4,261 4,966 148 293 159 173 3,483 89 105 388 103 198 2,294 Dec.. . 4.261 4,966 148 293 159 173 3,483 89 120 388 103 196 2,294 1974—Jan... 4.262 4,966 148 293 159 173 3,483 89 113 389 103 195 2,294 Feb... 4,262 4,966 148 293 159 173 3,483 89 120 389 103 194 2,294 Mar.. 4,262 4,966 149 293 159 173 3,483 89 123 389 103 156 2,294 Apr.. 4,262 4,966 149 293 159 173 3,483 89 118 389 103 155 2,294 May. . 4,262 4,966 149 293 159 173 3,483 89 142 389 103 154 2,294 June., 4,262 4,966 150 293 159 173 3,483 89 130 389 103 154 2,294 July.. 4,262 4,966 150 293 158 173 3,483 130 389 105 2,294 Aug.. 4,262 4,966 150 293 158 173 3.483 130 389 107 2,294 Sept.f 4,262 4,966 150 158 173 3,483 130 389 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 Settlements2 1970 54 902 119 666 498 200 2,732 92 126 1,349 162 384 -282 1971 55 921 108 410 498 200 2,909 82 130 775 148 391 310 1972 60 1,021 117 681 541 217 3,158 89 136 800 133 425 218 1973—Sept 60 1,036 116 738 542 220 3,162 89 136 797 133 425 213 Oct 67 1,154 129 820 602 244 3,512 99 151 886 148 472 227 Nov 67 1,159 129 809 602 244 3,513 99 151 886 148 472 237 Dec 67 1,163 129 802 602 244 3,513 99 151 886 148 472 235 1974—Jan 67 1,167 129 793 602 244 3,513 99 151 886 148 472 271 Feb 67 1,171 129 783 602 244 3,513 99 151 886 148 472 277 Mar 67 1,176 129 780 602 244 3,513 99 151 886 148 472 274 Apr 67 1,180 129 780 602 244 3,513 99 151 886 148 472 271 May 67 1,180 129 777 602 244 3,513 99 151 886 148 472 247 June 67 11,,118800 129 781 602 244 3,513 99 151 886 148 472 259 July 67 129 788 602 244 3,513 99 151 114488 472 225599 Aue 67 129 777788 660022 244 3.513 9999 151 472 Sept v 6677 112299 224444 33,,551133 9999 115511 447722 225599 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 PHILIP E. COLDWELL 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 Opportunity 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 LYLE E. GRAMLEY, Director LEGAL DIVISION ROBERT S. PLOTKIN, Associate Program JAMES L. PIERCE, Associate Director Director for Bank Holding Company PETER M. KEIR, Adviser Analysis ANDREW F. OEHMANN, Acting General Counsel JAMES L. KICHLINE, Adviser JOHN NICOLL, Deputy General Counsel STANLEY J. SIGEL, Adviser DIVISION OF FEDERAL RESERVE BANK BALDWIN B. TUTTLE, Assistant General MURRAY S. WERNICK, Adviser Counsel OPERATIONS KENNETH B. WILLIAMS, Adviser CHARLES R. MCNEILL, Assistant to the General JAMES B. ECKERT, Associate Adviser Counsel J R A O M N E A S LD R . G K . U B D U L R IN K S E K , I, D A i s r s e o ct c o ia r te Director ALLEN L. RAIKEN, Adviser E R D O W BE A R R T D J. C . LA ET W T R I E N N , C A E s , so A c s ia so te c iate A dvi A se d r v iser E. MAURICE MCWHIRTER, Associate ELEANOR J. STOCKWELL, 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 FRAWSEILRL IAM 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 CHARLES L. HAMPTON, Director THEODORE E. ALLISON, Secretary RALPH C. BRYANT, Director HENRY W. MEETZE, Associate Director NORM AND R. V. BERNARD, Assistant JOHN E. REYNOLDS, Associate Director GLENN L. CUMMINS, Assistant Director Secretary PAUL WONNACOTT, Associate Director WARREN N. MINAMI, Assistant Director ELIZABETH L. CARMICHAEL, Assistant Secretary ROBERT F. GEMMILL, Adviser ROBERT J. ZEMEL, Assistant Director GRIFFITH L. GARWOOD, Assistant Secretary REED J. IRVINE, Adviser BERNARD NORWOOD, Adviser SAMUEL PIZER, Adviser DIVISION OF PERSONNEL DIVISION OF BANKING SUPERVISION AND REGULATION GEORGE B. HENRY, Associate Adviser KEITH D. ENGSTROM, Director HELEN B. JUNZ, Associate Adviser CHARLES W. WOOD, Assistant Director BRENTON C. LEAVITT, Director CHARLES J. SIEGMAN, Assistant Adviser FREDERICK R. DAHL, Assistant Director EDWIN M. TRUMAN, Assistant Adviser 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 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 Chairman ROBERT P. BLACK PHILIP E. COLDWELL JOHN E. SHEEHAN JEFFREY M. BUCHER ROBERT C. HOLLAND HENRY C. WALLICH GEORGE H. CLAY MONROE KIMBREL WILLIS J. WINN GEORGE W. MITCHELL ARTHUR L. BROIDA, Secretary ROBERT SOLOMON, Economist MURRAY ALTMANN, Deputy Secretary (International Finance) NORMAND R. V. BERNARD, Assistant HARRY BRANDT, Associate Economist Secretary RALPH C. BRYANT^ Associate Economist THOMAS J. O'CONNELL, General Counsel RICHARD G. DAVIS, Associate Economist EDWARD G. GUY, Deputy General Counsel RAYMOND J. DOLL, Associate Economist JOHN NICOLL, Assistant General Counsel LYLE E. GRAMLEY, Associate Economist J. CHARLES PARTEE, Senior Economist WILLIAM J. HOCTER, Associate Economist STEPHEN H. AXILROD, Economist JAMES PARTHEMOS, Associate Economist (Domestic Finance) JAMES L. PIERCE, Associate Economist JOHN E. REYNOLDS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERN LIGHT, Deputy Manager, System Open Market Account FEDERAL ADVISORY COUNCIL THOMAS I. STORRS, FIFTH FEDERAL RESERVE DISTRICT, President JAMES F. ENGLISH, JR., FIRST FEDERAL RESERVE DISTRICT, Vice President GABRIEL HAUGE, SECOND FEDERAL DONALD E. LASATER, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JAMES F. BODINE, THIRD FEDERAL GEORGE H. DIXON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL EUGENE H. ADAMS, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT LAWRENCE A. MERRIGAN, SIXTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH FEDERAL HAROLD A. ROGERS, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, 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. Due sen berry Frank E. Morris Louis W. Cabot James A. Mcintosh New York 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs Buffalo ....14240 Norman F. Beach A. A. Maclnnes, Jr. Philadelphia 19105 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes Cleveland 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati 45201 Graham E. Marx Robert E. Showalter Pittsburgh 15230 Richard Cyert Robert D. Duggan Richmond 23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall George C. Rankin Baltimore 21203 James G. Harlow Jimmie R. Monhollon Charlotte 28201 Charles W. DeBell Stuart P. Fishburne Culpeper Communications J. Gordon Dickerson, Jr. Center 22701 Atlanta 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham 35202 William C. Bauer Hiram J. Honea^ Jacksonville 32203 Gert H. W. Schmidt Edward C. Rainey Nashville 37203 Edward J. Boling Jeffrey J. Wells New Orleans 70161 Edwin J. Caplan George C. Guynn Miami Office 33152 W. M. Davis Chicago 60690 William H. Franklin Robert P. Mayo Peter B. Clark Ernest T. Baughman Detroit 48231 W.M. Defoe William C. Conrad St. Louis 63166 Edward J. Schnuck Darryl R. Francis Sam Cooper Eugene A. Leonard Little Rock 72203 W.M. Pierce John F. Breen Louisville 40201 James C. Hendershot Donald L. Henry Memphis 38101 C. Whitney Brown L. Terry Britt Minneapolis 55480 Bruce B. Dayton Bruce K. MacLaury James P. McFarland Clement A. Van Nice Helena 59601 William A. Cordingley Howard L. Knous Kansas City 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boysen Denver 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City 73125 Joseph H. Williams William G. Evans Omaha 68102 Durward B. Varner Robert D. Hamilton Dallas 75222 John Lawrence Charles T. Beaird T. W. Plant El Paso 79999 Gage Holland Fredric W. Reed Houston 77001 T.J. Barlow James L. Cauthen San Antonio 78295 Marshall Boykin, III Carl H. Moore San Francisco 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi John B.Williams Los Angeles 90051 Joseph R. Vaughan Gerald R. Kelly Portland 97208 John R. Howard William M. Brown Salt Lake City 84110 Sam H. Bennion A. Grant Holman Seattle 98124 C. Henry Bacon, Jr. Paul W. Cavan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 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 BANK MERGERS & THE REGULATORY AGENCIES: FUNCTIONS. 1974. 125 pp. $1.00 each; 10 or APPLICATION OF THE BANK MERGER ACT OF more to one address, $.75 each. 1960. 1964. 260 pp. $1.00 each; 10 or more to ANNUAL REPORT one address, $.85 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per THE PERFORMANCE OF BANK HOLDING COMPAyear or $2.00 each in the United States and its NIES. 1967. 29 pp. $.25 each; 10 or more to one possessions, Bolivia, Canada, Chile, Colombia, address, $.20 each. Costa Rica, Cuba, Dominican Republic, Ecuador, THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 Guatemala, Haiti, Republic of Honduras, Mexico, each; 10 or more to one address, $.85 each. Nicaragua, Panama, Paraguay, Peru, El Salvador, TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 Uruguay, and Venezuela; 10 or more of same issue each; 10 or more to one address, $.85 each. to one address, $18.00 per year or $1.75 each. U.S. TREASURY ADVANCE REFUNDING, JUNE Elsewhere, $24.00 per year or $2.50 each. 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or FEDERAL RESERVE CHART BOOK ON FINANCIAL more to one address, $.40 each. AND BUSINESS STATISTICS. Monthly. Subscrip- BANK CREDIT-CARD AND CHECK-CREDIT PLANS. tion includes one issue of Historical Chart Book. 1968. 102 pp. $1.00 each; 10 or more to one $12.00 per year or $1.25 each in the United States address, $.85 each. and the countries listed above; 10 or more of same INTEREST RATE EXPECTATIONS: TESTS ON YIELD issue to one address, $1.00 each. Elsewhere, SPREADS AMONG SHORT-TERM GOVERNMENT $15.00 per year or $1.50 each. SECURITIES. 1968. 83 pp. $.50 each; 10 or more to one address, $.40 each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to monthly chart book includes one SURVEY OF FINANCIAL CHARACTERISTICS OF issue. $1.25 each in the United States and countries CONSUMERS. 1966. 166 pp. $1.00 each; 10 or listed above; 10 or more to one address, $1.00 each. more to one address, $.85 each. Elsewhere, $1.50 each. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. THE FEDERAL RESERVE ACT, as amended through 321 pp. $1.00 each; 10 or more to one address, December 1971, with an appendix containing pro- $.85 each. visions of certain other statutes affecting the Federal REPORT OF THE JOINT TREASURY-FEDERAL RE- Reserve System. 252 pp. $1.25. SERVE STUDY OF THE U.S. GOVERNMENT SE- REGULATIONS OF THE BOARD OF GOVERNORS OF CURITIES MARKET. 1969. 48 pp. $.25 each; 10 THE FEDERAL RESERVE SYSTEM. or more to one address, $.20 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF JOINT TREASURY-FEDERAL RESERVE STUDY OF GOVERNORS, as of December 31, 1973. $2.50. THE GOVERNMENT SECURITIES MARKET: DEBITS AND CLEARING STATISTICS AND THEIR USE. STAFF STUDIES—PART 1. 1970. 86 pp. $.50 each; 1959. 144 pp. $1.00 each; 10 or more to one 10 or more to one address, $.40 each. PART 2. address, $.85 each. 1971. 153 pp. and PART 3. 1973. 131 pp. Each SUPPLEMENT TO BANKING AND MONETARY STA- volume $1.00; 10 or more to one address, $.85 TISTICS. Sec. 1. Banks and the Monetary System, each. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. OPEN MARKET POLICIES AND OPERATING PROCE- 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. DURES—STAFF STUDIES. 1971. 218 pp. $2.00; $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. 10 or more to one address, $1.75 each. Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. REAPPRAISAL OF THE FEDERAL RESERVE DIS- Sec. 10. Member Bank Reserves and Related Items. COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 2. 1971, 173 pp. Vol. 3. 1972. 220 pp. Each pp. $.35. Sec. 12. Money Rates and Securities volume $3.00 each; 10 or more to one address, Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. $2.50 each. 24 pp. $.35. Sec. 15. International Finance. 1962. THE ECONOMETRICS OF PRICE DETERMINATION 92 pp. $.65. Sec. 16 (New). Consumer Credit. CONFERENCE, October 30-31, 1970, Washington, 1965. 103 pp. $.65. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; INDUSTRIAL PRODUCTION—1971 edition. 383 pp. 10 or more to one address, $4.50 each. Paper ed. $4.00 each; 10 or more to one address, $3.50 each. $4.00 each; 10 or more to one address, $3.60 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 85 FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- A REVISED INDEX OF MANUFACTURING CAPACITY, ERATE FLUCTUATIONS IN HOUSING CON- Staff Economic Study by Frank de Leeuw with STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 Frank E. Hopkins and Michael D. Sherman. 1 1/66. or more to one address, $3.60 each. REVISED SERIES ON COMMERCIAL AND INDUS- LENDING FUNCTIONS OF THE FEDERAL RESERVE TRIAL LOANS BY INDUSTRY. 2/67. BANKS: A HISTORY, by Howard H. Hackley. 1973. INTEREST COST EFFECTS OF COMMERCIAL BANK 271 pp. $3.50 each; 10 or more to one address, UNDERWRITING OF MUNICIPAL REVENUE $3.00 each. BONDS. 8/67. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. 4/68. STAFF ECONOMIC STUDIES FEDERAL FISCAL POLICY IN THE 1960's. 9/68. Studies and papers on economic and financial subjects BUSINESS FINANCING BY BUSINESS FINANCE COMthat are of general interest in the field of economic PANIES. 10/68. research. HOUSING PRODUCTION AND FINANCE. 3/69. REVISION OF WEEKLY SERIES FOR COMMERCIAL Summaries only printed in the BULLETIN BANKS. 8/69. (Limited supply of mimeographed copies of full EURO-DOLLARS: A CHANGING MARKET. 10/69. 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. MORTGAGE COMMITMENTS ON INCOME PROPER- MONETARY AGGREGATES AND MONEY MARKET TIES: A NEW SERIES FOR 15 LIFE INSURANCE CONDITIONS IN OPEN MARKET POLICY. 2/71. 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, by Samuel H. Talley. Feb. 1974. 24 pp. TWO KEY ISSUES OF MONETARY POLICY. 6/71. 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. Staff Economic Studies shown in list below. PLANNED AND ACTUAL LONG-TERM BORROWING (Except for Staff Papers, Staff Economic Studies, and BY STATE & LOCAL GOVERNMENTS. 12/71. some leading articles, most of the articles reprinted do ASSETS AND LIABILITIES OF FOREIGN BRANCHES not exceed 12 pages.) OF U.S. BANKS. 2/72. WAYS TO MODERATE FLUCTUATIONS IN THE CON- REPRINTS STRUCTION OF HOUSING. 3/72. CONSTRUCTION LOANS AT COMMERCIAL BANKS. ADJUSTMENT FOR SEASONAL VARIATION. 6/41. 6/72. SOME ESSENTIALS OF INTERNATIONAL MONETARY SEASONAL FACTORS AFFECTING BANK RESERVES. REFORM. 6/72. 2/58. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN- LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste- OVER—REVISED SERIES. 7/72. phen H. Axiirod. 10/61. YIELDS ON NEWLY ISSUED CORPORATE BONDS. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 9/72. 7/62. RECENT ACTIVITIES OF FOREIGN BRANCHES OF INTEREST RATES AND MONETARY POLICY, Staff U.S. BANKS. 10/72. Paper by Stephen H. Axiirod. 9/62. REVISION OF CONSUMER CREDIT STATISTICS. MEASURES OF MEMBER BANK RESERVES. 7/63. 10/72. REVISION OF BANK DEBITS AND DEPOSIT TURN- SURVEY OF FINANCE COMPANIES, 1970. 11/72. OVER SERIES. 3/65. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 RESEARCH ON BANKING STRUCTURE AND PER- AMENDMENTS. 12/72. FORMANCE, Staff Economic Study by Tynan Smith. 4/66. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 REVISION OF THE MONEY STOCK MEASURES AND RECENT DEVELOPMENTS IN THE U.S. BALANCE OF MEMBER BANK RESERVES AND DEPOSITS. 2/73. PAYMENTS. 4/74. STATE AND LOCAL BORROWING ANTICIPATIONS CHANGES IN BANK LENDING PRACTICES, 1973. 4/74. AND REALIZATIONS. 4/73. CAPACITY UTILIZATION FOR MAJOR MATERIALS: YIELDS ON RECENTLY OFFERED CORPORATE REVISED MEASURES. 4/74. BONDS. 5/73. OPEN MARKET OPERATIONS IN 1973. 5/74. FEDERAL FISCAL POLICY, 1965-72. 6/73. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI- ABLES AND THEIR ROLE IN MONETARY POLICY. SOME PROBLEMS OF CENTRAL BANKING. 6/73. 5/74. CAPACITY UTILIZATION IN MAJOR MATERIALS IN- TREASURY AND FEDERAL RESERVE FOREIGN EX- DUSTRIES. 8/73. CHANGE OPERATIONS, INTERIM REPORT. 6/74. CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- BANKING AND MONETARY STATISTICS, 1973. Se- MERCIAL BANKS. 9/73. lected series of banking and monetary statistics for RATES ON CONSUMER INSTALMENT LOANS. 9/73. 1973 only. 3/74 and 7/74. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. TREASURY AND FEDERAL RESERVE FOREIGN EX- 10/73. CHANGE OPERATIONS. 9/74. NEW SERIES FOR LARGE MANUFACTURING COR- CHANGES IN TIME AND SAVINGS DEPOSITS AT PORATIONS. 10/73. COMMERCIAL BANKS, OCTOBER 1973-JANUARY MONEY SUPPLY IN THE CONDUCT OF MONETARY 1974. 9/74. POLICY. 11/73. INFLATION AND STAGNATION IN MAJOR FOREIGN U.S. ENERGY SUPPLIES AND USES, Staff Economic INDUSTRIAL COUNTRIES. 10/74. Study by Clayton Gehman. 12/73. FINANCIAL DEVELOPMENTS IN THE THIRD QUAR- REVISION OF THE MONEY STOCK MEASURES AND TER OF 1974. 11/74. MEMBER BANK DEPOSITS. 2/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers, 11, 27, 29 Demand deposits: Agricultural loans of commercial banks, 18, 20 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 19, 23 Banks, by classes, 16, 18, 19, 20, 32 Ownership by individuals, partnerships, and Federal Reserve Banks, 12 corporations, 26 Nonfinancial corporations, current, 43 Subject to reserve requirements, 15 Automobiles: Turnover, 13 Consumer instalment credit, 47, 48, 49 Deposits (See also specific types of deposits): Production index, 50, 51 Accumulated at commercial banks for payment of personal loans, 26 Bank credit proxy, 15 Banks, by classes, 16, 19, 23, 32 Bankers balances, 18, 19, 22 Federal Reserve Banks, 12, 74 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 15 Banks for cooperatives, 40 Discount rates (See Interest rates) Bonds (See also U.S. Govt, securities): Discounts and advances by Reserve Banks (See Loans) New issues, 40, 41, 42 Dividends, corporate, 43 Yields and prices, 30, 31 Branch banks: Employment, 52, 54 Assets, foreign branches of U.S. banks, 72 Liabilities of U.S. banks to their foreign branches and 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 Federal Home Loan Mortgage Corporation, 39, 44, 45 Capacity utilization, 52 Federal Housing Administration, 44, 45, 46 Capital accounts: Federal intermediate credit banks, 39, 40 Banks, by classes, 16, 19, 24 Federal land banks, 39, 40, 44 Federal Reserve Banks, 12 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Central banks, 77, 78 Federal Reserve Banks: Certificates of deposit, 24 Condition statement, 12 Commercial and industrial loans: U.S. Govt, securities held, 4, 12, 13, 36, 37 Commercial banks, 15, 18, 27 Federal Reserve credit, 4, 6, 12, 13 Weekly reporting banks, 20-24, 25 Federal Reserve notes, 12 Commercial banks: Federally sponsored credit agencies, 39, 40 Assets and liabilities, 15, 16, 18, 19, 20 Finance companies: Consumer loans held, by type, 47 Loans, 20, 48, 49 Deposits at, for payment of personal loans, 26 Paper, 27, 29 Loans sold outright, 27 Financial institutions, loans to, 18, 20 Number, by classes, 16 Float, 4 Real estate mortgages held, by type of holder and prop- Flow of funds, 58, 59 erty, 44-46 Foreign: Commercial paper, 27, 29 Currency operations, 11, 12 Condition statements (See Assets and liabilities) Deposits in U.S. banks, 5, 12, 19, 23, 74 Construction, 52, 53 Exchange rates, 77 Consumer credit: Trade, 61 Instalment credit, 47, 48, 49 Foreigners: Noninstalment credit, 47 Claims on, 68, 69, 70, 74, 75, 76 Consumer price indexes, 52, 55 Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Consumption expenditures, 56, 57 Corporations: Gold: Profits, taxes, and dividends, 43 Certificates, 12 Security issues, 41, 42 Earmarked, 74 Security yields and prices, 30, 31 Net purchases by United States, 62 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 78 Currency and coin, 5, 9, 18 Stock, 4, 61 Currency in circulation, 5, 14 Government National Mortgage Assn., 44 Customer credit, stock market, 31, 32 Gross national product, 56, 57 Debits to deposit accounts, 13 Housing permits, 52 Debt (See specific types of debt or securities) Housing starts, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 FEDERAL RESERVE BULLETIN • NOVEMBER 1974 Income, national and personal, 56, 57 Real estate loans: Industrial production index, 50, 51, 52 Banks, by classes, 18, 21, 32, 44 Instalment loans, 47, 48, 49 Mortgage yields, 45. 46 Insurance companies, 33, 36, 37, 44, 46 Type of holder and property mortgaged. 44-46 Insured commercial banks, 16, 18, 26 Reserve position, basic, member banks, 7 Interbank deposits, 16, 19 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, 59 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, 19, 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, 19 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 Minneapolis^ Petrol Chicago j Oma/ta* TmcwnatA ~7 Kansas Cittj*? It. Louis Oklahoma. Citif ^ T ^ A & n ta Dallas Jiouston AewOrCean* >an Antonio* Miami •Drawn by KW. gafvin, Cart i> C° THE FEDERAL RESERVE SYSTEM q) a HAWAII Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © 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