Federal Reserve Bulletin, 1974-12

> . • 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 12 • VOLUME 60 • DECEMBER 1974 CONTENTS 805 Industrial Production 817 Revision of Money Stock Measures and Member Bank Reserves and Deposits 828 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report 830 Statements to Congress 842 Record of Policy Actions of the Federal Open Market Committee 849 Law Department 881 Announcements 886 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 89 Index to Statistical Tables A 91 Index to Volume 60 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

Industrial Production This article was prepared in the Business Conditions Section of the Division of Research and Statistics. Industrial production turned down in the fall of 1974 following little change during the spring and summer. At the end of the year, price pressures were still strong although final demands for goods were softening and inventories were becoming increasingly burdensome. At the same time shortages of materials and component parts had become less frequent, numerous commodities were in easy supply, and delivery times had shortened considerably. The decline that has occurred in industrial output in recent months reflects a widening of cutbacks in production of consumer goods and materials—including particularly sharp curtailments in autos and the auto-supplying industries—and the primary and secondary effects of the coal strike. By November, output was well below the peak reached a year earlier after marked expansion over the preceding 2 years. CHART 1 INDUSTRIAL PRODUCTION and the major groupings turn down at year-end CONSUMER GOODS INDUSTRIAL MATERIALS TOTAL INDEX BUSINESS EQUIPMENT , Seasonally adjusted. Latest data, November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 FEDERAL RESERVE BULLETIN • DECEMBER 1974 For most of 1974 industrial output has been characterized by a mixture of strengths and weaknesses. The business equipment and industrial materials sectors have been sustaining forces while output of consumer goods has been a depressing influence. Demands for automobiles are down sharply, and declines in residential construction and retail sales have cut deeply into purchases of household durable goods. Output of construction products has declined in tandem with the severe curtailment of residential construction activity. Under pressure of a decline in demand for housing and for durable consumer; goods and a steady expansion in production capacity of major materials, the earlier tight market for industrial materials eased, and output of most materials was declining at the year-end. Production of business equipment increased moderately until October 1974, then declined. Domestic installation of new capital equipment slowed considerably during the year although export demands remained strong. In the labor market, total employment in nonagricultural establishments continued to rise until September 1974 but at a much slower rate than in the previous 2 years. In contrast, employment in manufacturing establishments eased off, and average weekly hours of production workers declined from 40.6 hours in the last quarter of 1973 to 39.5 hours in November of this year. The unemployment rate, which had hovered around 5.2 per cent in the first half of 1974, began to rise sharply in the summer and in November it was 6.5 per cent. During 1973 much of the rise in the wholesale price index had reflected a sharp increase in prices of farm products and feeds and to some extent a rise in industrial commodities. In 1974, on the other hand, prices of oil and other industrial commodities soared. Farm products and processed foods fluctuated but on balance did not exceed the 1973 peaks. In late 1974 wholesale prices of some industrial materials began to ease as a result of the downturn in the economy. The consumer price index has shown a larger increase in 1974 than in 1973, with the sharpest increases in costs of fuel and utilities, medical care services, and homeowner ship. CONSUMER GOODS During the period from early 1971 to mid-1973, output of consumer goods had expanded faster than its long-term trend and also faster than real disposable income, while net imports of these goods had increased further. During 1973, however, because of an accelerated rise in prices, real disposable income slowed and in early 1974 began to decline (Chart 2). Thus, while retail sales continued to rise in dollar volume, they were barely maintained in real terms during most of 1974. By the latter part of the year, sales in both current dollars and physical volume were declining. Business inventories of consumer goods, especially automobiles, reached record levels in the closing months of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION 807 CHART 2 Consumer INCOME and OUTPUT of consumer goods are curtailed Seasonally adjusted annual rates. Disposable personal income, BEA data in 1958 dollars converted to 1963 dollars by F.R. Production series based on gross values. Imports, Dept. of Commerce data, adjusted by F.R. Latest data, Q3. *Auto strike. Auto sales, which had reached a peak of 10.3 million units at an annual rate in the first quarter of 1973, began to decline by the middle of the year, and consequently assemblies were reduced to an annual rate of 9.1 million units during the second half of 1973. Nevertheless, total output of consumer goods reached advanced levels in the fourth quarter before beginning to decline late in the period. The initial phase of the decline was attributable to the oil embargo and in the first quarter of 1974 was confined largely to the automotive products and energy groups. By the fourth quarter CHART 3 Production of CONSUMER GOODS shows varied movements DURABLE GOODS NONDURABLE GOODS •X1IB8S • Seasonally adjusted annual rates based on IP gross value series with some revisions in seasonal allowances. Latest data, November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 FEDERAL RESERVE BULLETIN • DECEMBER 1974 of this year the decline had spread to include the clothing and home goods sectors (Chart 3). In November, output of durable consumer goods, the most volatile sector within the consumer goods group, was down 15 per cent from the mid-1973 peak while production of total consumer goods was down 5 per cent from the year earlier. Automobiles. During the oil embargo, sales and production of new domestic autos dropped sharply—with the decline centered in large cars. Assemblies of these cars declined 50 per cent from October 1973 to March 1974, whereas the production of small cars rose 20 per cent. During the second and third quarters, sales and production firmed as gasoline became readily available and fears of a shortage abated; and in August, in anticipation of large price increases announced for 1975 models, consumers accelerated sharply their purchases of 1974 model cars (Chart 4). Sales of new domestic autos reached an annual rate of 9.2 million units that month but then fell to a 5.7-million-unit rate in November. Despite curtailments made in production schedules, stocks of new domestic cars have risen to record levels. At the end of November, stocks of small cars were equivalent to a 130-day supply and large cars to a 90-day supply at prevailing sales rates. As a result of the worsening sales and inventory situations, car pro- CHART 4 SALES AND OUTPUT of domestic autos down sharply; STOCKS of small cars at record levels Seasonally adjusted. Sales and output at annual rates: stocks are index numbers. Latest data, November • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION 809 duction was cut sharply in November to a level 32 per cent below the 1973 high; and widespread shutdowns at auto assembly plants in December indicate further substantial curtailments. Sales of foreign autos, which had been declining since the 1973 dollar devaluation, turned upward in the summer of 1974; the rise was probably influenced by the price increases for 1975 domestic models, which gave imported cars a substantial competitive advantage prior to the introduction of their higher-priced 1975 models. However, in the fourth quarter these sales also dropped and by November they were at an annual rate of 1.3 million units—the same as in the low second quarter—while stocks were near record levels. Production of auto replacement parts appears to have changed little during 1974. However, cutbacks have been announced in other consumer transportation items—including leisure vehicles, utility trucks, motorcycles, and bicycles. Output of mobile homes was down 50 per cent in November from the highs of early 1973, whereas it had merely leveled off during periods of curtailments in housing activity in 1966 and 1969. Home goods. Output of appliances, television sets, carpets, and furniture has fallen about one-tenth on the average since midyear as a result of reduced sales and increased stocks. Not only have sales of household appliances declined at retail, but also the prolonged decline in residential construction and the curtailed sales of existing dwellings have reduced installations of these goods. Factory and dealer stocks of home appliances have been increasing since midyear. Consequently, further cutbacks in production of these durable goods are expected. Nondurable consumer goods. Over-all output of nondurable consumer goods has been relatively stable this year. In fact, few of the series in this group have shown the usual year-over-year growth. Fuel and lighting and, to a lesser extent, paper products, both of which experienced a sharply falling output last winter, have risen during 1974 and have offset a decline in clothing. Output of consumer chemical products, as well as foods, has shown little change over last year. BUSINESS EQUIPMENT Following 2 years of rapid increases, business equipment output in 1974 advanced at a much slower pace until October. In November business equipment declined, but it was still 2.5 per cent above the November 1973 level. In contrast, in November the total production index was 4.3 per cent below its 1973 peak. In the 1969 cyclical downturn, both industrial production and business equipment had turned down at about the same time (Chart 5). f The situation in 1974 differs from that in 1969 mainly in the growth of U.S. exports of capital goods, which has been promoted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 FEDERAL RESERVE BULLETIN • DECEMBER 1974 CHART 5 BUSINESS EQUIPMENT output turns down almost a year after the industrial production peak Seasonally adjusted. Latest data, November. by dollar devaluations, domestic price controls, and a worldwide economic boom. During the 1971-74 period, real net exports of capital goods increased from an annual volume just under $8 billion to more than $11 billion (1963 dollars). The effect of foreign trade developments appears in Chart 6, which compares in real gross value terms domestic business equipment production with a series for production less net exports—a measure of the domestic economy's takings of such goods. According to these series, domestic takings peaked in the final quarter of 1973, which suggests that growth in the domestic takings of capital goods had ceased a full year ago. Exports of all types of equipment, but especially aircraft and nonelectric machinery, have expanded in 1974. There have been a number of factors unfavorable to the continued expansion of business equipment production. First, inflation has to date abated little. As a result, capital financing has been made CHART 6 1974 growth in business equipment due to EXPORTS BUSINESS EQUIPMENT Seasonally adjusted gross values in 1963 dollars, at annual rates. Imports and exports, Bureau of Census, deflated by F.R. Latest data, Q3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION 811 difficult by high nominal interest rates at a time when prices of capital goods are high and rising rapidly. More recently, inflation has hurt capital spending because it has reduced the volume of consumer buying, thus contributing to the general slowdown of business activity. For example, there has been considerable scaling back of investment plans by electric utilities in the face of slower-thanexpected growth in consumption of electricity and the high cost of financing. Second, the book value of materials inventories has been growing at a dramatic rate—an annual rate of more than $16 billion in late 1974 contrasted with $7 billion or less in 1972 and the first half of 1973, according to the Department of Commerce. This rate of increase is considerably larger than can be explained by inflation alone, and it raises the likelihood of a general materials inventory adjustment that could adversely affect profitability and, therefore, the investment climate in basic materials industries. Third has been the mediocre profit performance over several previous years on the part of some key industries, such as steel and paper. Even though capacity utilization rates in manufacturing were high in 1973, these high rates were probably symptomatic of the factors, such as profits performance, that had been discouraging growth in investment for at least several years. To some extent, more favorable prices and profits to producers created a better investment climate in 1974. Increased investment by some of the basic materials industries with recent histories of slow capacity growth has been a major reason why aggregate investment continued to show strength in 1974. It remains to be seen, however, whether profit realizations for these and other industries can be maintained at present high levels in a weakening economy. Fourth, corporate profits have begun to decline as consumers have retrenched and costs have continued to climb. One sign that the general weakness is affecting the capital goods industry adversely is the decrease in new orders for machine tools (in real terms), which began in April 1974. Moreover, backlogs of machine tool orders declined in October, for the first time in more than 2 years. Chart 7 presents the recent history of selected components of production of business equipment. Output of manufacturing equipment rose steadily from its most recent trough—in mid- 1971—to June 1974. Meanwhile, production of all manufactured goods, which had risen steadily after 1971, turned downward in the late autumn of 1973. Equipment output for this market, however, did not weaken until midyear; then it leveled off. During 1974, and in fact since early 1972, production of the second component—transportation equipment—has not grown significantly. Output of motor trucks, after having pressed capacity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 FEDERAL RESERVE BULLETIN • DECEMBER 1974 limits in late 1973, began to decline in mid-1974, and in November it was little different from last January's level. Civilian aircraft production showed little change in 1974 and remains well below its 1966 level. Capital expenditures by the airlines in 1975 are expected to be lower (in real terms) than those in 1974 because of financial problems that such companies are encountering as a result of a decrease in passenger volume, inflated fuel costs, and heavy debt service from past equipment financing. In contrast, output of rail equipment continues to rise, as railroads anticipate a large increase in equipment expenditures for 1975. A steady and rapid rise in output of building and mining equipment from July 1971 to June 1974 took place in spite of the plunge in residential construction activity that began in mid- 1973. Commercial and industrial construction held firm through midyear of 1974, but it too began to decline in the second half. A rapid expansion of oil and gas well-drilling activity and growing demand for equipment on the part of the oil and gas and other mining industries have to some extent offset the effects of the declines in the construction industry. After a brief setback in July, building and mining equipment production resumed its growth, and in November it was 55 per cent above its level at the trough of mid-1971. CHART 7 Components of BUSINESS EQUIPMENT ease late in 1974 Seasonally adjusted. Latest data, November. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION 813 One of the weaker components of total business equipment in recent months has been power-generating equipment; production in November 1974 was about 1 per cent below the peak in late 1973. Since mid-1973 rapidly rising fuel prices, increasing construction and financing costs, and less-than-anticipated growth in demand have resulted in a widespread scaling down of investment plans on the part of public utilities. According to the Department of Commerce survey, electric utilities anticipate a substantial decline in the size of their real investment for 1975. The 1974 slackness in output of power equipment may well reflect the early effects of this policy, rather than a short-run fluctuation of the sort that has characterized this series. DEFENSE AND SPACE Output of defense and space equipment continues to be depressed EQUIPMENT as compared with its peak rate in 1968. This slowdown is due to a decreased space effort since the completion of the Apollo program, the removal of the need for keeping a large proportion of the Armed Forces on a war footing as in the Vietnam war, and strong congressional resistance to expanded defense budgets. INTERMEDIATE PRODUCTS Intermediate products—such as construction products, job printing, and fertilizer—are manufactured in the industrial sector for use mainly outside the sector. Output of construction products has been declining since its August 1973 high, and in November it was down by 11 per cent. The cutbacks in output of lumber, plywood, and other construction materials reflect the long and sharp curtailment in residential construction and the more recent peaking of nonresidential construction. Production of general business supplies rose moderately through June of this year, but it too has declined rather sharply since then. MATERIALS Production of materials for further industrial processing peaked in November 1973 after a 2-year expansion of 24 per cent. During that period, output of such materials had risen about one-third more than the increase in total products (Chart 8). Capacity utilization in major materials industries had risen over the same period by about 11 per cent to a high of 93.5 per cent in the third quarter of 1973. The increase in capacity utilization reflected not only the growth of domestic demand relative to capacity but also increasing foreign demand and worldwide inventory accumulation, which contributed to reported shortages and rapidly escalating prices for such materials as metals, paper, fuels, and petrochemicals. Increased output of materials, higher prices, and greater profitability led to the higher levels of investment in plant and equipment that were necessary to expand materials production. Since the 1973 peak, total materials production has declined by about 7 per cent, and the capacity utilization rate for major materials Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 FEDERAL RESERVE BULLETIN • DECEMBER 1974 has fallen from 93.5 to about 84 per cent. The reduction in materials output reflects the contraction in residential construction activity and in production of durable consumer goods, a decline in foreign demand for U.S. materials, attempts to limit further accumulation of stocks of materials, and in some industries a reduction of excessive stocks. Because of declining demands and the growth in available capacity, prices of several basic industrial materials began to drop as early as last spring. The Federal Reserve spot price index for industrial materials has declined in nearly all months since July, and in mid-December it was about one-fourth below its April peak. Price declines have been reported for lumber, plywood, copper, nonferrous scrap, and textile fibers and gray goods. However, prices of steel mill products and many other fabricated materials have continued to rise. On balance the price rise for the over-all index has slowed from its earlier extraordinary rate (Chart 8). Declines in output of materials have reflected the changing patterns of domestic and foreign demand for different products. CHART 8 MATERIALS output declines faster than total products, and PRICE rise slows INDUSTRIAL MATERIALS UTILIZATION RATE OF MATERIALS TOTAL PRODUCTS MATERIALS NEW DOMESTIC SUPPLIES PRICES OF MATERIALS i NET IMPORTS ADJUSTED FOR FOREIGN TRADE UNADJUSTED Seasonally adjusted except prices. Price index, F.R. grouping industrial production indexes for materials and total products of BLS data. Utilization rate, F.R. Supplies, net imports plus (net imports compiled from Dept. of Commerce data; duties projections of 1963 output-inventory relationships based on and freight on imports, F.R. estimates). Latest data, November or Q3 . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION 815 Production of both the durable and the nondurable materials that are used mainly to manufacture automobiles, appliances, and apparel have declined relative to the output of materials used to produce equipment. Usually, the most volatile of the materials in terms of production rates are those used in durable goods manufacturing. This category includes basic metals and the various semifinished products that are processed into durable consumer goods and business equipment. Because of the strength of equipment output, production of these materials was down only 3 per cent in October from the 1973 high. In November, however, output of durable goods materials dropped by over 4 per cent more. Further cutbacks are anticipated as weakening price trends lead to reduced demands for inventory. Output of iron and steel, which has been at or near maximum capacity during 1974, declined appreciably in November. The cutbacks probably reflected a softening of demands in certain sectors as well as shutdowns due to the coal strike. Inventories of steel mill products have been drawn down sharply at producing plants but have risen considerably at steel-consuming industries. Despite the coal strike, the accumulation of user inventories remains large. Nevertheless, future production by those industries may be affected by the economic slowdown both here and abroad. Output of durable consumer parts declined by 15 per cent between November 1973 and February 1974 as automobile sales and production plummeted. This decline, along with a modest reduction in industrial fuel and power production, accounted for most of the 2.3 per cent decline in total materials output over that period. Production of durable consumer parts recovered to some degree through the summer, but sharp curtailments in production of appliances and of 1975-model-year automobiles caused output of materials for durable consumer goods to decline to a level in November that was 20 per cent below the peak in late 1973. Demands for materials and parts used in the business equipment industries, however, have remained high throughout 1974. Output of these goods continues to be near peak levels. Over-all production of nondurable industrial materials is typically more stable and less influenced by cyclical changes than is output of durable materials. However, the textile, paper, and chemical grouping is affected by cyclical developments, and its output has been declining since last autumn. The long-term trend in the growth of energy output, as measured in industrial production, was interrupted by the oil embargo. Output declined from November 1973 through the first quarter of 1974, and then recovered partially by midyear. Production has since edged off slightly, and it remains below the levels prior to the oil embargo in 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

816 FEDERAL RESERVE BULLETIN • DECEMBER 1974 * * * With the softening of the economy in the latter part of 1974, industrial production declined in October and November. Cutbacks in employment and output announced for December indicate a further drop. Large inventories of durable consumer goods at year-end, a change from a position of scarcity to one approaching surplus of industrial materials and supplies, and cutbacks in domestic plans for plant and equipment spending suggest further weakness in industrial production in the coming months. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

817 Revision of Money Stock Measures and Member Bank Reserves and Deposits In late November the Board of Governors re- EFFECTS OF THE REVISION leased its annual revision of the money stock The domestic nonmember bank benchmark admeasures and related items. At the same time justment for June was small, lowering M only it revised published data for member bank de- x about $200 million. (The December 1973 doposits and reserves.1 mestic nonmember bank benchmark had raised The money stock revision included the incor- Mx by $400 million, while the April 1974 poration of new estimates for domestic nonbenchmark had lowered it $1.1 billion.) Other member banks, based on the June 1974 call minor benchmark adjustments offset this downreport, and the regular updating of seasonal ward revision. In addition, incorporation of adjustment factors. In addition, data were in- Mi-type deposits held at internationally oriented corporated from monthly reports filed by agenbanking institutions raised the level of M in cies and branches of foreign banks and foreign x June about $300 million. Thus, on balance, the investment banking corporations, which are level of Mi was raised by about $300 million reported with some lag. in June. Revised monthly data back to January 1968, Minor changes in the construction of M and both before and after seasonal adjustment, on 2 of the adjusted credit proxy were introduced in the money stock and related measures and on this revision, but they had little impact on either member bank deposits and reserves are shown the level or the trend of these series. In order on pages 822, 823, and 826. Revised weekly to avoid a break in the adjusted credit proxy data for M M and their components are shown u 2 series because of a change in the reporting of on pages 824 and 825. Monthly and weekly data commercial paper issued by a bank holding for earlier years are available from the Banking company or affiliate, loans sold to bank-related Section, Division of Research and Statistics. institutions were substituted for the commercial paper component. This substitution lowered the adjusted credit proxy about $1.8 billion in Oc- NOTE.—Edward R. Fry, Darwin Beck, and Mary F. Weaver of the Board's Division of Research and Statistics prepared tober 1974, and by lesser amounts back to late this article. 1972. For the 1969-71 period, the level of the 1The money stock and related measures include MX (private series was raised slightly. Changes in monthly demand deposits adjusted plus currency); M2 (MX plus commercial bank time and savings deposits other than large nego- patterns of growth were small. tiable certificates of deposit); and M3 (M2 plus deposits at Time deposits other than large negotiable mutual savings banks and savings capital at savings and loan associations), as well as (1) large negotiable time CD's out- CD's at weekly reporting banks are added to standing at weekly reporting banks and (2) U.S. Government Mi to construct M . In the past, CD figures for deposits. Monthly and weekly data for these series are pub- 2 lished in the BULLETIN and they also appear each week in Wednesday dates had been subtracted from the Board's H.6 press release. weekly average total time deposits to derive Member bank reserves include total, nonborrowed, and required reserves at member banks, as well as reserves avail- the "other" time deposits component. In this able to support private nonbank deposits (RPD's). Member revision, a CD measure more closely approxibank deposits and related series include all deposits subject to reserve requirements (the credit proxy), the components of mating a weekly average figure was derived by that total, consisting of time and savings deposits and private averaging two Wednesday observations—one and U.S. Government demand deposits; and the adjusted credit proxy (total member bank deposits subject to reserve require- for the current week and one for the previous ments plus Euro-dollar borrowing, loans sold to bank-related week. This measure was then subtracted from institutions, and other nondeposit items). Current monthly data on the reserves and deposits series are published in the BUL- weekly average total time and savings deposits. LETIN and monthly and weekly data appear in the Board's Monthly average measures for CD's and other H.3 press release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 FEDERAL RESERVE BULLETIN • DECEMBER 1974 time deposits are based on prorations of these months the difference was less than 1 percentage weekly observations. This minor change tended point. Revisions in growth rates for the adjusted to smooth the weekly and monthly averages for credit proxy were also small; the largest changes both CD's and other time deposits. occurred in March and April when the growth Changes in member bank deposits and re- rates were reduced about 2 percentage points. serves were small and were related entirely to changes in seasonal adjustment factors. SEASONAL FACTOR REVISION OF Table 1 shows in percentage terms the effect MONEY STOCK MEASURES of the revision on annual rates of change in money stock measures and the adjusted credit Revisions in monthly seasonal adjustment facproxy. On the basis of half-year rates, the revi- tors were minor. As shown in Table 2, changes sion lowered the growth of M in the first half in seasonal adjustment factors for demand det of 1973 and raised it in the second half by an posits tended to be concentrated in the second equal amount. In the first half of 1974, the rate half of the year. In the first half, only 2 months of increase in M remained unchanged as the were affected—the January factor was lowered t lower growth resulting from the benchmark ad- and the June factor raised. In general, seasonal justment was exactly offset by revised seasonal factors for demand deposits in the early months adjustment factors. As usual, differences in of the second half were raised, while factors monthly growth rates were somewhat larger in the last 4 months of the year were lowered than for longer-run periods but were still rela- or remained unchanged. Seasonal adjustment tively small. In no month did the revised esti- factor revisions for currency were also small, mate of growth in M exceed the earlier estimate and they had little impact on monthly growth x by more than 1.5 percentage points, and in most rates. TABLE 1 GROWTH RATES OF MONETARY AGGREGATES: COMPARISON OF OLD AND REVISED Annual rates of change in per cent Money stock CCrreeddiitt pprrooxxyy PPPeeerrriiioooddd MX MI MS Old New Old New Old New Old New series series series series series series series series 1973 6.1 6.1 8.9 8.8 8.8 8.8 10.6 10.4 1973—HI 7.7 7.4 9.1 9.1 9.7 9.6 13.8 13.5 H2 4-4 4.7 8.2 8.3 7.5 7.6 7.0 6.8 1974—HI.. 6.0 6.0 8.4 8.6 7.7 7.6 14.9 14.5 1973—Q1 3.8 3.4 6.9 7.3 8.6 8.6 14.6 14.5 Q2 11.5 11.3 11.1 10.6 10.6 10.3 12.6 12.2 Q3 .6 5.3 5.6 5.1 5.2 10.5 10.5 Q4 8.9 8.7 11.0 10.8 9.8 9.8 3.3 3.1 1974—Q1 5.6 5.5 9.0 9.3 8.9 8.8 8.5 8.2 Q2 6.4 6.5 7.7 7.7 6.4 6.4 20.9 20.4 Q3 1.6 1.6 4.6 4.6 4.0 4.0 6.3 6.6 1974—Jan -3.5 -2.7 6.3 6.9 7.1 7.2 12.5 12.3 Feb 11.1 9.7 12.7 11.1 10.9 9.3 1.3 2.9 Mar 9.2 9.2 7.8 9.7 8.3 9.5 11.3 9.2 6.5 6.1 7.2 8.0 7.0 7.3 31.6 29.6 4.8 4.3 5.1 4.3 4.2 3.3 16.8 J6.9 June 7.8 9.1 10.6 10.5 7.9 8.5 13.3 13.6 July 1.7 2.1 5.4 5.4 4.8 5.0 9.4 9.2 Aug 2.6 1.3 6.2 5.2 4.5 4.1 5.2 6.4 Sept .4 1.3 2.2 3.2 2.6 2.9 4.2 3.9 Oct 5.1 3.8 9.9 8.3 8.2 6.9 -.7 -.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 819 TABLE 2 BENCHMARK REVISIONS SEASONAL ADJUSTMENT FACTORS FOR Mi The money stock measures published by the Demand deposit Board of Governors are based on daily deposits component Currency component Month reported weekly by member banks and on Old Revised Old Revised single-day call report data available four times series series series series a year for domestic nonmember banks. In addi- 1973—November... 1.0060 1.0050 1.0075 1.0070 tion, the series are based in part on data for December.... 1.0320 1.0310 1.0156 1.0175 agencies and branches of foreign banks and 1974—January 1.0360 1.0350 .9956 .9935 February.... .9900 .9900 .9873 .9873 foreign investment banking corporations, which March .9900 .9900 .9902 .9910 have reported single-day data each month since April 1.0090 1.0090 .9936 .9945 May .9790 .9790 .9964 .9970 late 1972. These latter data are available only June .9900 .9910 1.0013 1.0020 with some lag, however. Hence the most recent July .9939 .9955 1.0081 1.0080 August .9830 .9840 1.0037 1.0037 figures are folded into the series when bench- September... .9930 .9920 .9990 .9990 mark data for domestic nonmember banks are October..... .9980 .9980 .9990 .9994 incorporated. In view of the shift from semiannual to quar- MONEY STOCK terly reporting of benchmark data by domestic nonmember banks beginning in March 1973, the Board of Governors began in 1974 to revise the money stock series as soon as the call report data were tabulated. Thus, in May 1974, benchmark data for December 1973 were incorporated into the money stock series; and in August 1974, the benchmark data for April 1974 were folded in. As previously noted, the December benchmark revision had raised the M 1 series about $400 million, while the April benchmark revision had lowered the series by Seasonal adjustment factors for time deposits $1.1 billion. other than CD's and for thrift institution depos- As an experiment to improve the estimate of its—components of the broader money stock the domestic nonmember bank component of the measures M and M , respectively—were also money stock, the Federal Deposit Insurance 2 3 reviewed. Here, too, changes were minor, and Corporation for the past several months has been monthly and longer-run rates of growth were collecting daily deposit and vault cash data— affected even less than M. similar to those reported by member banks— t Weekly seasonal adjustment factors were also from about 175 of the largest insured nonrevised. As in other recent years an additional member banks and from a stratified sample of year's data tended to smooth the week-to-week smaller insured nonmember banks. The Board fluctuations in the M series, as shown in the and FDIC staffs are in the process of reviewing t chart. In particular, more of the month-end the data from this experiment. Meanwhile, curdecline and more of the beginning-of-month rent estimates continue to be based on the ratio bulge noted in last year's revision were removed of domestic nonmember bank deposits to small as the continuation of that intramonthly pattern member bank deposits. for another year was given more weight.2 The June 1974 benchmark data for domestic nonmember banks lowered the money stock 2In the past, the Board has received numerous reseries about $200 million. As indicated earlier, quests for seasonal adjustment factors for Mx for future periods. Because of the public interest, estimated incorporation of M -type deposits at internax weekly and monthly seasonal adjustment factors for the tionally oriented institutions and other minor demand deposit and currency components of are benchmark adjustments—primarily deposits due shown in the table on page 821. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 FEDERAL RESERVE BULLETIN • DECEMBER 1974 TABLE 3 SOURCES OF REVISIONS IN M (1974) x In billions of dollars Difference due to— MMoonntthh OOlldd RReevviisseedd DDiiffffeerreennccee sseerriieess sseerriieess Domestic Internon- national Other member institutions April 227788..22 227788..22 May 227733..11 227722..99 -.2 -.1 -.2 .1 227777..66 227777..99 .3 -.2 .3 .2 July 227799..22 227799..77 .5 -.4 .7 .2 Aug 227777..22 227777..33 .1 -.4 .3 .2 Sept 227799..22 227799..00 -.2 -.5 .1 .2 228811..44 228811..22 -.2 -.5 .1 .2 NOTE.—Data are not adjusted for seasonal variation. to foreign commercial banks and mutual savings as part of the adjustment. In the fall of this year banks—at member banks more than offset this the reporting panel of banks was enlarged, and revision. On balance benchmark revisions raised the definition of commercial paper to be reported Mi in June by about $300 million, as shown was revised, thus causing a sharp break in the in Table 3, which indicates how the several series. Enlarging the panel of banks also caused factors affected the level of M beginning in a break in the "loans sold" series, but the break 1 May 1974. was small because new banks had made very few loans sales and there were only minor MEMBER BANK DEPOSITS AND definitional changes in the series. RESERVES Since the loans-sold series is a better measure Revisions in member bank deposits and reserves of funds actually channeled to a commercial reflect changes in seasonal adjustment factors bank—whether from commercial paper financbased on one additional year of data. Seasonally ing or from other sources of funds available to unadjusted deposits were not changed. The an affiliate—loans sold by a bank to its own series on seasonally unadjusted RPD's was re- subsidiary or affiliate were substituted for the vised slightly to reflect revised ratios of reserves old commercial paper series in this revision. held against private deposits and to incorporate Figures previously reported for loans sold were minor revisions in reserves held against adjusted to remove the small break in series, nondeposit sources of funds. Revisions in these which occurred in late August. Euro-dollar borseries were very small. rowings and other minor nondeposit sources of As indicated earlier, a more significant funds continue to be added to the credit proxy change was made that affected the level of the to round out the adjustment. adjusted credit proxy series. Since May 1969 As mentioned earlier, the current revision selected member banks had been reporting on lowered the level of the adjusted credit proxy the amounts of commercial paper issued by the about $1.8 billion in recent months and by lesser bank's holding company or affiliate. These same amounts back to late 1972. For 1969 to late banks had also reported the amounts of loans 1972 the level of the series was raised slightly. sold to bank-related institutions. While the As seen in Table 1, this adjustment lowered levels of these two series had been different, slightly the growth rates in 1973 and the first the patterns of growth had been much the same, half of 1974. The impact was minor, however, and in the old adjusted credit proxy series the and it had little effect on month-to-month commercial paper measure had been included growth rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 821 MI SEASONAL ADJUSTMENT FACTORS—1975 Demand deposits Currency 1.0350 .9935 .9900 .9873 .9900 .9910 1.0090 .9945 .9790 .9970 .9910 1.0020 .9955 1.0080 .9840 1.0035 .9920 .9990 .9980 .9990 1.0050 1.0070 1.0310 1.0175 Demand Demand deposits Currency Weekly deposits Currency 1.0540 1.0060 July 2 .9980 1.0050 1.0630 1.0090 9 1.0040 1.0210 1.0500 .9985 16 1.0030 1.0130 1.0290 .9885 23 .9870 1.0040 1.0050 .9770 30 .9860 .9950 1.0050 .9880 Aug. 6 . .9890 1.0070 .9910 .9940 13 .9890 1.0095 .9920 .9890 20 .9850 1.0060 .9760 .9775 27 .9720 .9925 .9940 .9900 Sept. 3 .9860 1.0000 .9890 .9960 10 .9920 1.0110 .9930 .9920 17 1.0040 1.0000 .9810 .9870 24 .9840 .9930 .9970 .9880 Oct. 1 .9890 .9890 1.0125 1.0065 8 .9960 1.0060 1.0240 1.0005 15 1.0030 1.0050 1.0130 .9910 22 .9980 1.0000 .9910 .9820 29 .9940 .9890 .9830 1.0010 Nov. 5 1.0095 1.0020 .9830 1.0000 12 1.0040 1.0120 .9770 .9955 19 1.0090 1.0080 .9680 .9910 26 .9970 1.0050 .9870 1.0000 Dec. 3 1.0100 1.0060 .9900 1.0080 10 1.0200 1.0200 .9995 1.0030 , 17 1.0340 1.0160 .9825 .9950 24 1.0320 1.0260 31 1.0450 1.0140 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY STOCK-SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 827) Over-all measures Components and related items MMMIII Deposits at commercial banks NNNNoooonnnnbbbbaaaannnnkkkk YYYY mmmm eeeeaaaa oooo rrrr nnnn aaaa tttthhhh nnnn dddd (((CCCuuu MMM rrrrrr iii eee nnncccyyy {{{ ttt MMM iiimmm III eee ppp ddd llluuu eee sss --- (((MMMIII MMM 333ppp llluuusss iiiinnnn tttthhhh sssstttt rrrr iiii iiii tttt ffff uuuu tttt ---pppllluuusss pppooosssiiitttsss aaattt nnnooonnnbbbaaannnkkk CCCuuurrrrrreeennncccyyy DDDeeemmmaaannnddd Time and savings ttttiiiioooonnnnssss 5555 dddeeemmmaaannnddd cccooommmlll... bbbaaannnkkksss ttthhhrrriiifffttt iiinnn--- CCDD''ss44 dddeeepppooosssiiitttsss 111))) ooottthhheeerrr ttthhhaaannn ssstttiiitttuuutttiiiooonnnsss 333))) lllaaarrrgggeee CCCDDD'''sss 222))) Other Total 1968—Jan 187.8 351.5 535.4 40.6 147.2 20.7 163.7 184.3 183.9 Feb 188.7 354.0 538.7 40.7 148.0 20.8 165.3 186.0 184.7 Mar 189.5 355.9 541.6 41.1 148.4 20.7 166.5 187.2 185.7 Apr 190.4 357.9 544.4 41.4 149.1 20.2 167.4 187.6 186.6 May 192.3 360.7 548.1 41.5 150.8 20.0 168.3 188.4 187.5 June 193.9 363.4 551.8 41.8 152.0 19.9 169.5 189.4 188.4 July 195.0 365.5 554.8 42.0 153.0 20.8 170.5 191.3 189.3 Aug 196.1 368.8 559.1 42.3 153.8 21.6 172.7 194.3 190.3 Sept 197.4 372.1 563.4 42.6 154.8 22.0 174.7 196.7 191.3 Oct 198.5 375.2 567.6 42.8 155.7 22.7 176.7 199.4 192.4 Nov 200.3 379.2 572.7 43.2 157.1 22.9 178.9 201.8 193.5 Dec 201.7 382.3 576.8 43.4 158.2 23.5 180.6 204.1 194.5 1969—Jan 202.9 384.7 580.1 43.6 159.2 21.7 181.8 203.5 195.5 Feb 204.0 386.5 582.9 43.9 160.1 20.3 182.5 202.8 196.4 Mar 204.7 387.9 585.3 44.1 160.6 19.1 183.1 202.3 197.4 Apr 205.5 389.3 587.5 44.2 161.3 18.5 183.8 202.3 198.1 May 206.2 390.3 589.0 44.4 161.7 17.7 184.1 201.9 198.7 June . 206.7 391.8 591.1 44.7 162.0 16.3 185.1 201.4 199.3 July 207.3 391.0 590.7 44.9 162.4 14.4 183.8 198.2 199.6 Aug 207.1 390.0 589.9 45.2 161.9 12.6 182.9 195.6 199.9 Sept 207.6 390.7 591.1 45.3 162.3 11.8 183.1 194.8 200.4 Oct 208.1 391.0 591.7 45.6 162.5 11.3 182.9 194.2 200.7 Nov 208.7 392.0 592.9 45.9 162.8 11.1 183.3 194.4 200.9 Dec 208.7 392.2 593.5 46.1 162.7 11.0 183.5 194.5 201.3 1970—Jan 210.6 393.3 594.5 46.3 164.3 10.5 182.7 193.2 201.2 Feb 210.0 392.6 593.7 46.5 163.5 10.6 182.6 193.3 201.1 Mar 211.7 395.3 596.8 46.7 165.0 11.4 183.6 195.1 201.5 Apr 213.3 398.8 601.1 47.0 166.3 13.0 185.5 198.5 202.3 May 214.3 401.0 604.3 47.5 166.8 13.4 186.7 200.1 203.4 June 214.8 403.6 608.2 47.6 167.2 13.4 188.8 202.2 204.6 July 215.6 407.4 613.4 47.9 167.7 16.5 191.7 208.3 206.1 Aug 217.3 411.9 620.0 48.1 169.2 18.7 194.6 213.3 208.1 Sept 219.3 416.4 626.8 48.3 171.0 20.9 197.2 218.0 210.3 Oct 219.8 419.2 631.8 48.5 171.3 22.3 199.4 221.8 212.6 Nov 220.6 421.9 636.9 48.8 171.9 23.7 201.3 225.0 215.0 Dec 221.4 425.3 642.8 49.1 172.3 25.4 203.9 229.3 217.5 1971—Jan 222.2 429.9 650.0 49.4 172.7 26.6 207.8 234.4 220.1 Feb 224.2 436.7 659.5 49.8 174.5 27.7 212.4 240.1 222.9 Mar 226.0 443.1 669.1 50.0 176.1 28.3 217.0 245.4 226.0 Apr 227.7 447.6 677.1 50.4 177.3 27.9 219.8 247.7 229.5 May 230.3 452.6 685.6 50.7 179.6 28.3 222.3 250.6 233.0 June 232.0 457.1 693.4 51.0 181.1 29.1 225.1 254.2 236.3 July 233.1 459.3 698.7 51.5 181.6 30.0 226.1 256.1 239.5 Aug 233.7 461.2 703.9 51.7 182.0 30.0 227.5 257.6 242.7 Sept 234.3 463.7 709.6 51.9 182.4 30.9 229.4 260.3 245.8 Oct 234.9 466.6 715.5 52.2 182.7 32.4 231.7 264.0 248.9 Nov 235.1 469.6 721.5 52.3 182.7 32.7 234.5 267.2 251.9 Dec 235.3 473.1 727.9 52.6 182.7 33.5 237.7 271.2 254.9 1972—Jan 235.9 477.5 735.6 52.9 183.0 33.7 241.6 275.3 258. 1 Feb 238.2 482.7 744.2 53.2 184.9 34.4 244.6 279.0 261.4 Mar 240.5 487.5 752.3 53.6 186.9 33.9 247.0 280.9 264.8 Apr 242.0 490.9 758.9 53.8 188.2 34.7 248.9 283.5 268.0 May 242.7 494.3 765.5 54.1 188.7 35.8 251.6 287.4 271.2 June 244.0 498.7 773.5 54.3 189.6 36.7 254.7 291.4 274.8 July 246.2 503.2 781.9 54.6 191.6 37.4 257.0 294.4 278.7 Aug 247.7 507.8 790.7 54.9 192.8 38.1 260.1 298.2 282.9 Sept 249.7 512.3 799.4 55.3 194.4 39.4 262.6 302.0 287.0 Oct 251.3 516.5 807.3 55.8 195.6 40.5 265.1 305.6 290.8 Nov 252.8 520.3 814.5 56.3 196.4 42.1 267.5 309.6 294.2 Dec 255.8 525.7 823.2 56.9 198.9 43.9 269.9 313.8 297.5 1973—Jan 256.9 529.8 830.5 57.2 199.8 45.2 272.9 318.1 300.7 Feb 257.9 532.9 836.2 57.5 200.4 49.4 275.0 324.4 303.3 Mar 258.0 535.3 840.9 57.9 200.1 54.4 277.3 331.7 305.6 Apr 259.4 538.8 846.5 58.6 200.8 57.7 279.4 337.1 307.8 May 262.3 544.2 854.4 58.9 203.4 59.6 281.9 341.5 310.2 June 265.3 549.5 862.6 59.3 206.0 60.6 284.2 344.9 313.1 July 266.1 551.9 866.8 59.5 206.6 62.5 285.8 348.3 314.9 Aug 266.0 555.1 870.7 59.8 206.2 65.3 289.0 354.3 315.6 Sept 265.7 557.2 873.9 60.2 205.5 66.1 291.5 357.6 316.7 Oct 266.6 561.6 880.0 60.5 206.1 64.7 295.0 359.6 318.4 Nov 269.4 567.2 887.8 61.0 208.4 63.1 297.7 360.8 320.6 Dec 271.5 572.2 895.3 61.6 209.9 63.8 300.7 364.5 323.1 1974—Jan 270.9 575.5 900.7 62.0 208.9 66.4 304.6 371.0 325.2 Feb 273.1 580.8 907.7 62.7 210.4 68.2 307.7 375.9 326.9 Mar 275.2 585.5 914.9 63.3 211.9 68.0 310.3 378.3 329.5 Apr 276.6 589.4 920.5 63.9 212.8 73.9 312.7 386.7 331.1 May 277.6 591.5 923.0 64.3 213.2 78.5 314.0 392.5 331.5 June 279.7 596.7 929.5 64.6 215.0 81.3 317.0 398.4 332.7 July 280.2 599.4 933.4 64.8 215.4 83.6 319.2 402.8 334.0 Aug 280.5 602.0 936.6 65.4 215.1 83.8 321.5 405.3 334.5 Sept 280.8 603.6 938.9 65.8 215.0 84.8 322.8 407.6 335 3 Oct.p 228811..77 660077..88 994444..33 6666..55 221155..22 8866..22 332266!! 11 441122!! 33 333366^^66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY STOCK—NOT SEASONALLY ADJUSTED 823 In billions of dollars (for footnotes see page 827) Over-all measures Components and related items MMMIII Deposits at commerical banks YYYYeeeeaaaarrrr aaaannnndddd MMMIII ((( ttt MMM iiimmm III eee ppp ddd llluuu eee sss --- {{{MMMIII MMM ZZZppp llluuusss NNNNoooo tttt nnnn hhhh bbbb rrrriiii aaaa fffftttt nnnn kkkk GGGG UUUU oooo .... vvvv SSSS tttt .... ,,,, mmmmoooonnnntttthhhh (((CCCuuurrrrrreeennnccc>>> pppooosssiiitttsss aaattt nnnooonnnbbbaaannnkkk Demand deposits Time and savings deposits iiiinnnnssssttttiiiittttuuuu---- ddddeeeeppppoooossssiiiittttssss 1111 pppllluuusss cccooommmlll... ttthhhrrriiifffttt iiinnn--- CCCuuurrrrrreeennncccyyy ttttiiiioooonnnnssss 5555 dddeeemmmaaannnddd bbbaaannnkkksss ssstttiiitttuuu--dddeeepppooosssiiitttsss ooottthhheeerrr tttiiiooonnnsss 333))) Domesttthhhaaannn lllaaarrrgggeee Total Member tic non- Total CD's 4 Other CCCDDD'''sss 222))) member 1968—Jan 193.2 356.4 540.7 40.5 152.7 120.3 31.1 183.9 20.6 163.3 184.3 5.0 Feb 187.0 352.0 536.8 40.3 146.7 115.6 29.9 185.9 20.9 165.1 184.7 7.2 Mar 187.6 354.7 540.9 40.7 146.9 115.9 29.8 187.9 20.8 167.1 186.2 6.7 Apr 191.4 359.7 546.6 41.0 150.4 118.6 30.5 188.2 19.9 168.2 186.9 4.3 May 188.7 357.9 545.2 41.3 147.5 116.1 30.1 188.7 19.6 169.1 187.3 6.5 June 192.3 362.0 550.8 41.8 150.5 118.6 30.6 189.0 19.3 169.6 188.9 5.6 July 194.0 364.7 554.3 42.3 151.8 119.2 31.2 191.1 20.4 170.7 189.6 5.8 Aug 193.5 366.3 556.0 42.5 151.1 118.5 31.2 194.8 22.1 172.8 189.7 5.7 Sept 196.2 370.8 561.6 42.6 153.5 120.1 32.1 196.7 22.2 174.6 190.9 6.0 Oct 198.5 375.3 567.3 42.8 155.7 121.8 32.6 199.7 23.0 176.8 192.0 6.3 Nov 202.0 379.7 572.6 43.6 158.3 123.5 33.4 201.4 23.6 177.8 192.9 4.5 Dec 207.6 387.0 581.6 44.3 163.3 127.6 34.3 203.2 23.8 179.4 194.6 5.0 1969—Jan 208.6 389.7 585.5 43.5 165.1 129.0 34.8 202.9 21.8 181.1 195.8 4.9 Feb 202.0 384.3 580.6 43.4 158.6 123.8 33.5 202.6 20.3 182.3 196.3 6.9 Mar 202.7 386.7 584.5 43.7 159.0 124.2 33.4 203.2 19.2 184.0 197.8 4.8 Apr 206.6 391.4 589.9 43.8 162.8 126.9 34.5 203.0 18.2 184.8 198.5 5.3 May 202.4 387.5 586.1 44.2 158.2 123.1 33.7 202.4 17.3 185.2 198.5 9.2 June 205.3 390.7 590.5 44.7 160.6 124.8 34.4 201.3 15.9 185.4 199.8 6.0 July 206.4 390.3 590.3 45.2 161.2 125.1 34.8 198.0 14.1 183.9 200.0 5.6 Aug 204.3 387.3 586.7 45.4 159.0 123.1 34.6 196.0 13.0 183.0 199.4 4.3 Sept 206.3 389.2 589.2 45.3 161.0 124.3 35.4 194.9 12.0 182.9 200.0 5.3 Oct 208.2 391.0 591.3 45.6 162.5 125.4 35.8 194.4 11.5 182.8 200.4 4.2 Nov 210.3 392.3 592.6 46.4 163.9 126.3 36.4 193.4 11.4 182.0 200.3 5.2 Dec 214.7 396.8 598.2 46.9 167.7 129.3 37.2 193.2 11.1 182.1 201.4 5.6 1970—Jan 216.4 398.5 600.0 46.1 170.3 131.3 37.7 192.7 10.6 182.1 201.4 4.8 Feb 207.8 390.2 591.1 45.9 161.9 124.9 35.7 193.0 10.6 182.4 200.9 7.1 Mar 209.6 394.1 596.3 46.3 163.3 126.4 35.6 195.9 11.4 184.5 202.2 6.9 Apr 214.4 401.1 604.5 46.6 167.8 129.7 36.7 199.3 12.7 186.7 203.4 5.3 May 210.6 398.6 602.6 47.3 163.3 126. 1 35.8 201.1 13.0 188.1 204.0 6.4 June 213.4 402.7 608.3 47.7 165.7 128.2 36.0 202.3 13.0 189.3 205.7 6.5 July 214.8 406.7 614.0 48.3 166.6 128.5 36.5 208.0 16.1 191.9 207.2 6.8 Aug 214.6 409.2 617.2 48.3 166.3 128.3 36.5 213.8 19.2 194.6 208.0 7.1 Sept 217.9 414.6 624.1 48.2 169.6 130.9 37.2 218.1 21.4 196.7 209.5 6.9 Oct 219.6 418.6 630.0 48.5 171.1 132.0 37.6 222.0 23.1 199.0 211.4 6.2 Nov 222. 1 421.8 634.6 49.2 172.9 133.1 38.2 224.1 24.4 199.7 212.8 5.7 Dec 227.6 430.0 645.6 50.0 177.7 136.9 39.2 228.1 25.7 202.4 215.6 7.3 1971—Jan 228.1 435.1 654.3 49.1 179.0 137.7 39.8 233.8 26.8 207.0 219.2 6.8 Feb 221.9 434.2 656.8 49.1 172.7 133.0 38.3 239.6 27.3 212.3 222.6 8.5 Mar 223.8 442.1 669.1 49.5 174.3 134.3 38.4 246.2 28.0 218.2 227. 1 5.5 Apr 229.0 450.4 681.8 50.1 178.9 137.7 39.7 248.5 27.1 221.4 231.4 5.6 May 226.3 450.3 684.7 50.5 175.8 135.2 39.1 251.4 27.4 224.0 234.4 8.0 June 230.5 456.2 694.1 51.0 179.4 137.9 40.0 254.0 28.3 225.7 237.9 5.5 July 232.5 458.9 699.8 51.9 180.6 138.4 40.7 255.6 29.3 226.4 240.9 7.0 Aug 231.0 458.3 700.9 51.9 179.1 136.8 40.7 258.3 31.0 227.3 242.6 7.0 Sept 232.8 461.5 706.5 51.9 180.9 137.9 41.4 260.6 31.9 228.7 245.0 7.7 Oct 234.5 465.6 713.3 52.2 182.3 138.6 42.1 264.6 33.5 231.1 247.7 5.4 Nov 236.4 468.9 718.7 52.7 183.6 139.1 43.0 266.1 33.6 232.6 249.7 4.0 Dec 241.9 477.9 730.9 53.5 188.4 142.6 44.1 269.8 33.8 236.0 253.0 6.9 1972—Jan 241.9 482.8 740.1 52.5 189.4 143.3 44.6 274.6 33.7 240.9 257.2 7.4 Feb 235.6 480.5 741.7 52.6 183.1 138.6 43.2 278.4 33.6 244.8 261.2 7.4 Mar 238.1 486.8 752.8 53.1 185.0 140.1 43.7 282.0 33.4 248.7 266.0 7.9 Apr 243.4 494.2 764.2 53.5 189.9 143.7 45.1 284.5 33.7 250.9 270.0 7.7 May 238.6 492.3 764.8 53.9 184.7 139.3 44.3 288.6 34.9 253.7 272.5 10.5 June 242.4 498.0 774.3 54.4 187.9 141.4 45.4 291.4 35.8 255.6 276.4 6.9 July 245.7 503.0 783.2 55.1 190.6 143.1 46.4 294.0 36.8 257.3 280.2 7.3 Aug 244.8 504.8 787.5 55.1 189.8 142.0 46.8 299.5 39.5 260.0 282.7 5.3 Sept 248.1 509.9 795.9 55.3 192.8 143.9 47.9 302.7 41.0 261.8 286.0 6.0 Oct 250.9 515.1 804.6 55.7 195.2 145.3 48.8 306.0 41.8 264.2 289.5 6.7 254.2 518.9 810.9 56.7 197.4 146.7 49.7 307.8 43.1 264.7 292.0 6.3 Dec 263.0 530.7 826.3 57.9 205.1 152.4 51.4 311.8 44.2 267.6 295.6 7.4 1973 Jan 263.5 535.6 835.6 56.8 206.8 152.8 51.6 317.0 44.9 272.0 300.0 8.1 Feb 255.2 530.4 833.7 56.8 198.4 146.2 49.8 323.3 48.1 275.2 303.3 9.9 255.5 534.6 841.5 57.4 198.1 145.6 50.1 332.6 53.5 279. 1 306.9 10.4 Apr 260.9 542.5 852.3 58.3 202.6 148.9 51.6 337.6 56.0 281.6 309.7 8.3 May 257.9 542.2 853.6 58.7 199.2 145.8 51.1 342.7 58.4 284.3 311.4 8.7 June 263.6 548.9 863.6 59.4 204.1 149. 1 52.4 344.7 59.3 285.3 314.7 7.1 July 265.7 551.7 868.2 60.0 205.7 149.7 53.2 347.8 61.8 286.0 316.5 6.5 Aug 263.0 551.9 867.2 60.0 202.9 147.8 52.7 356.7 67.8 288.9 315.3 4.1 Sept 264.0 554.2 869.8 60.1 203.8 148.2 53.3 359.3 69.0 290.3 315.6 5.3 Oct 266.1 559.8 876.9 60.4 205.7 149.7 53.8 360.3 66.6 293.7 317.0 6.0 270.9 565.6 883.9 61.5 209.5 151.8 55.1 359.0 64.3 294.7 318.3 4.3 Dec 279.1 577.3 898.5 62.7 216.4 157.0 56.6 362.2 64.0 298.2 321.2 6.3 1974—Jan 277.8 581.4 905.9 61.6 216.2 156.4 56.9 369.4 65.8 303.6 324.5 8.1 Feb 270.2 578.5 905.4 61.9 208.3 151.1 54.6 374.3 66.1 308.3 326.9 6.6 272.5 584.9 915.7 62.7 209.8 152.4 54.7 379.1 66.7 312.4 330.8 6.4 278.2 593.5 926.7 63.5 214.7 155.8 56.2 387.1 71.8 315.3 333.2 6.0 272.9 589.6 922.6 64.1 208.7 151.3 54.8 393.9 77.2 316.7 333.0 7.6 277.9 596.1 930.8 64.8 213.1 153.6 56.1 397.9 79.6 318.3 334.7 6.1 July 279.7 599.0 934.5 65.3 214.4 154.4 56.5 402.0 82.8 319.2 335.6 5.4 277.3 598.5 932.6 65.7 211.6 152.4 56.2 408.3 87.1 321.2 334.2 4.0 Sept 279.0 600.4 934.6 65.8 213.2 153.5 56.8 410.2 88.7 321.4 334.1 5.4 Oct.** 281.2 605.9 941.1 66.4 214.8 154.5 57.4 413.5 88.8 324.7 335.2 3.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 FEDERAL RESERVE BULLETIN • DECEMBER 1974 MONEY STOCK—NOT SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 827) Over-all measures Components and related items YYYYeeeeaaaarrrr MMM222 Deposits at commercial banks aaaannnndddd (((MMMIII pppllluuusss UUUU....SSSS.... wwwweeeeeeeekkkk---- MMMIII tttiiimmmeee dddeeeppp... GGGGoooovvvvtttt,,,, eeeennnnddddiiiinnnngggg (((CCCuuurrrrrreeennncccyyy aaattt cccooommmlll... Demand deposits Time and savings deposits ddddeeeeppppoooossssiiiittttssss6666 ddddaaaatttteeee pppllluuusss bbbaaannnkkksss ooottthhheeerrr CCCuuurrrrrreeennncccyyy dddeeemmmaaannnddd ttthhhaaannn lllaaarrrgggeee dddeeepppooosssiiitttsss iii))) tttiiimmmeee Domes- CCCDDD'''sss 222))) Total Member tic non- Total CD's4 Other member 1974—Jan. 2... 285.9 586.9 62.0 223.8 162.5 58.3 365.5 64.5 301.0 10.0 9... 283.6 585.5 62.4 221.2 159.4 58.6 367.0 65.1 301.9 8.5 16... 281.0 583.9 61.9 219.2 158.3 58.0 368.5 65.6 302.9 6.2 23... 274.5 579.1 61.4 213.2 154.0 56.3 370.6 66.0 304.6 7.4 30... 269.7 575.1 60.8 208.8 151.6 54.4 372. 1 66.7 305.4 9.2 Feb. 6... 271.2 577.2 61.7 209.5 152.0 54.8 372.5 66.6 306.0 8.8 13... 270.4 578.1 62.1 208.2 150.7 54.9 373.9 66.2 307.7 6.0 20. . . 271.4 579.9 62.0 209.4 152.0 54.8 374.4 65.9 308.5 5.2 27... 267.7 577.8 61.4 206.3 149.6 54.0 375.8 65.7 310. 1 6.7 Mar. 6... 273.2 584.0 62.5 210.7 153.1 54.9 376.7 65.8 310.8 6.7 13... 272.8 584.8 62.9 209.9 152.1 55.1 378.2 66.2 312.0 4.3 20... 272.4 584.5 62.7 209.7 152.2 54.7 378.5 66.4 312.1 7.2 27... 270.2 583.6 62.4 207.9 151.1 54.0 380.4 67.0 313.4 6.9 Apr. 3... 275.8 590.1 62.8 212.9 155.0 55.1 383.0 68.6 314.3 7.2 10. .. 279.4 594.6 64.2 215.2 156.1 56.3 385.7 70.5 315.2 4.6 17. .. 283.1 598.1 63.9 219.2 158.8 57.4 386.7 71.6 315.0 4.6 24... 277.0 592.6 63.2 213.8 155. 1 56.0 388.3 72.7 315.6 6.0 MMaayy 11...... 273.7 589.3 63.0 210.7 153.0 54.9 389.6 73.9 315.7 9.4 88...... 273.4 589.3 64.4 209.0 151.6 54.8 391.1 75.1 315.9 11.2 15. .. 274.3 590.8 64.3 210.0 152.1 55.4 392.9 76.4 316.5 7.6 22... 272.7 589.5 64.1 208.6 151.3 54.7 394.6 77.9 316.8 6.5 29... 270.1 587.6 64.0 206.1 149.5 54.2 396.7 79.2 317.4 5.3 June 5... 276.8 594.4 64.5 212.3 153.8 55.6 397.0 79.4 317.7 4.3 12... 278.4 596.7 65.2 213.2 153.8 56.4 397.7 79.4 318.3 3.7 19... 279.3 597.4 64.8 214.4 154.1 56.5 397.6 79.4 318.2 6.7 26... 275.6 594.0 64.2 211.4 152.3 55.7 398.0 79.7 318.4 8.0 July 3... 281.0 599.7 65.1 215.9 155.8 56.5 399.2 80.5 318.7 8.7 10... 281.4 600.1 66.1 215.4 154.6 57.3 399.7 81.0 318.7 6.9 17... 282.0 600.9 65.5 216.5 155.6 57.4 401.0 82.1 319.0 4.2 24... 277.3 596.8 65.0 212.3 153.0 55.9 403.3 83.9 319.5 4.6 31... 276.8 596.9 64.6 212.2 153.3 55.4 405.3 85.2 320.1 4.3 Aug. 7. • • 278.6 599.0 65.8 212.8 153.2 56.3 406.1 85.8 320.3 4.3 14.. . 279.1 600.6 66.0 213.1 153.3 56.7 407.9 86.5 321.4 3.7 21.. • 277.5 598.7 65.7 211.8 152.4 56.3 408.6 87.4 321.2 4.0 28... 274.2 595.7 65.1 209.1 150.7 55.6 409.6 88.2 321.5 4.1 Sept. 4. • • 278.3 600.0 65.8 212.5 153.2 56.4 410.2 88.5 321.8 3.3 11... 280.3 601.9 66.3 214.0 153.4 57.7 410.3 88.7 321.5 3.8 18... 280.7 601.5 65.8 214.9 154.3 57.6 409.4 88.6 320.8 5.6 25... 276.2 597.6 65.3 210.9 151.8 55.9 410.1 88.7 321.4 7.0 Oct. 2.. . 278.7 601.1 65.4 213.3 154.5 55.9 411.7 89.3 322.4 6.7 9... 280.6 694.3 66.9 213.7 153.8 57.0 412.8 89.2 323.6 4.6 16... 283.9 608.7 66.8 217.1 156.0 58.3 413.5 88.8 324.8 3.0 23... 280.8 606.3 66.3 214.5 154.0 57.6 414.3 88.9 325.5 3.3 30P.. 279.4 604.7 65.9 213.4 153.8 56.8 413.7 88.3 325.4 3.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 825 MONEY STOCK—SEASONALLY ADJUSTED In billions of dollars (for footnotes see page 827) Over-all measures Components and related items Year and MI Deposits at commercial banks week- MI (Mi plus ending (Currency time dep. Currency date plus at coml. Time and savings demand banks other Demand deposits1) than large time CD's 2) CD's 4 Other Total 1974—Jan. 2 271.8 574.4 61.6 210.2 65.1 302.6 367.8 9 270.7 574.1 61.9 208.9 65.5 303.4 368.9 16 270.8 574.9 62.1 208.7 65.9 304.1 370.1 23 270.5 575.8 62.1 208.4 66.7 305.3 372.0 30 270.5 576.4 62.3 208.2 67.6 305.8 373.4 Feb. 6 271.6 578.0 62.4 209.3 68.3 306.4 374.7 13 272.7 580.1 62.6 210.1 68.4 307.3 375.7 20 273.9 581.8 62.8 211.1 68.3 308.0 376.2 27 273.8 582.7 62.8 210.9 68.0 308.9 376.9 Mar. 6 274.9 584.3 63.0 211.9 67.3 309.3 376.6 13 275.4 585.3 63.2 212.2 67.2 309.9 377.1 20 274.6 584.9 63.2 211.4 67.5 310.3 377.8 27 275.3 586.2 63.4 211.9 68.5 310.9 379.4 Apr. 3 276.4 588.0 63.5 212.9 70.3 311.6 381.9 10 276.3 588.8 63.8 212.5 72.3 312.4 384.7 17 277.4 589.9 64.0 213.4 73.8 312.5 386.3 24 276.7 589.8 63.9 212.8 75.1 313.1 388.2 MMaayy 11 276.5 589.7 64.1 212.4 76.3 313.2 389.6 88 277.0 590.3 64.3 212.7 77.2 313.3 390.4 15 277.6 591.4 64.3 213.2 78.1 313.8 391.9 22 278.2 592.2 64.4 213.7 78.9 314.0 392.9 29 277.5 592.1 64.5 213.0 79.7 314.6 394.3 June 5 278.8 594.3 64.4 214.4 80.1 315.5 395.7 12 279.6 595.9 64.7 214.9 80.6 316.3 396.8 19 280.0 597.4 64.7 215.3 81.3 317.4 398.7 26 280.1 597.9 64.6 215.5 82.1 317.8 399.9 July 3 280.4 598.4 64.7 215.7 82.8 318.0 400.8 10 279.1 597.8 64.6 214.5 83.2 318.7 401.8 17 280.6 599.6 64.7 215.9 83.6 319.0 402.5 24 280.1 599.7 64.8 215.3 84.0 319.6 403.5 31 280.1 600.3 65.0 215.1 84.1 320.2 404.3 Aug. 7 280.6 601.1 65.2 215.4 84.0 320.5 404.5 14 280.9 602.4 65.5 215.5 83.7 321.5 405.2 21 280.6 602.2 65.4 215.2 83.7 321.6 405.3 28 280.6 692.7 65.7 214.9 83.6 322.1 405.7 SSeepptt.. 44 280.9 603.4 65.6 215.3 83.9 322.5 406.4 280.8 693.5 65.7 215.1 84.6 322.6 407.2 18 280.4 693.0 65.9 214.5 84.8 322.6 407.4 25 280.6 603.6 65.9 214.8 84.9 323.0 407.9 Oct. 2 280.7 604.2 65.9 214.8 86.0 323.5 409.5 9 280.8 605.4 66.3 214.6 86.4 324.6 411.0 16 282.4 608.2 66.6 215.8 86.1 325.8 411.9 23 282.0 608.8 66.5 215.6 86.2 326.8 413.0 30? 281.2 608.3 66.7 214.5 86.1 327.0 413.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AGGREGATE RESERVES AND MEMBER BANK DEPOSITS In billions of dollars (for footnotes see page 827) Member bank reserves, S.A. 7 Deposits subject to reserve requirements9 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss ii oo PPPPeeeerrrriiiioooodddd TTToootttaaalll NNN bbb ooo ooo nnn rrr--- --- qqquuu RRR iii eee rrr --- eeeddd AAA aaabbb vvv lll aaa eee iii lll 888 --- TTiimmee Demand TTiimmee Demand rrrooowwweeeddd TToottaall aanndd TToottaall aanndd SS..AA.. NN..SS..AA.. ssaavviinnggss Private U.S. ssaavviinnggss Private U.S. Govt. Govt. 1968-—Jan 25.29 25.05 24.91 23.05 276.9 149.8 121.8 5.4 280.8 149.4 127.0 4.4 281.3 285.1 Feb 25.68 25.31 25.29 23.23 279.0 151.0 122.4 5.6 278.7 150.9 121.4 6.4 283.5 283.2 Mar 25.71 25.05 25.37 23.32 279.8 151.6 122.9 5.3 279.5 152.2 121.5 5.8 284.5 284.2 Apr 25.64 24.96 25.31 23.36 279.8 151.7 123.2 4.9 280.1 152.0 124.3 3.7 284.6 284.9 May 25.72 24.98 25.36 23.55 280.7 152.0 124.5 4.2 279.1 152.3 121.2 5.6 286.4 284.7 June 25.96 25.26 25.63 23.66 282.8 152.7 125.6 4.5 281.1 152.2 124.1 4.8 289.0 287.3 July 26.14 25.61 25.79 23.82 284.7 154.2 126.7 3.9 284.4 154.0 125.4 5.0 291.4 291.1 Aug 26.58 26.01 26.25 24.06 288.9 156.6 127.4 4.9 286.6 157.1 124.6 4.8 295.8 293.4 Sept 26.49 25.99 26.13 24. 16 290.7 158.6 127.6 4.5 290.2 158.6 126.4 5.1 298.0 297.4 Oct 26.75 26.31 26.51 24.14 294.5 160.7 128.1 5.7 294.5 161.0 128. 1 5.4 301.7 301.7 Nov 26.96 26.42 26.66 24.37 297.1 162.6 129.1 5.3 296.2 162.3 130.2 3.6 304.2 303.4 Dec 27.28 26.54 26.86 24.85 299.6 164.3 130.3 5.0 303.2 163.8 135.3 4.1 306.6 310.2 1969-—Jan 27.30 26.56 27.05 24.75 298.6 163.1 130.8 4.8 303.1 162.7 136.2 4.2 306.5 311.0 Feb 27.22 26.39 26.97 24.74 298.2 161.9 131.4 5.0 297.9 161.8 130.3 5.9 306.9 306.6 Mar 27.06 26.16 26.82 24.76 295.8 160.9 131.4 3.4 295.5 161.6 129.9 3.9 305.1 304.8 Apr 27.27 26.27 27.10 25.02 297.7 160.6 131.5 5.6 298.3 160.9 132.8 4.5 307.3 307.9 May 28.05 26.68 27.80 25.22 298.3 159.7 131.9 6.7 296.6 160.1 128.6 7.9 309.1 307.3 June 27.94 26.55 27.63 25.13 296.2 158.8 132.3 5.1 294.4 158.6 130.9 5.0 311.8 310.1 July 27.49 26.24 27.27 24.88 292.0 155.5 132.2 4.2 291.1 155.3 131.1 4.7 310.0 309.1 Aug '27.34 26.12 27.10 25.25 287.9 152.8 132.0 3.1 285.9 153.1 129.2 3.5 306.6 304.6 Sept 27.28 26.20 27.00 25.12 287.6 151.8 132.0 3.8 287.0 151.8 130.8 4.4 306.4 305.8 Oct 27.39 26.24 27.22 25.12 286.2 150.9 131.8 3.5 286.2 151.1 131.7 3.5 305.3 305.3 Nov 27.82 26.62 27.59 25.40 288.3 150.9 132. 1 5.3 287.4 150.0 133.1 4.3 307.9 307.0 Dec 28.01 26.90 27.73 25.39 287.7 150.5 131.9 5.3 291.2 149.7 136.9 4.6 307.0 310.5 1970-—Jan 27.96 27.00 27.78 25.38 286.9 149.3 132.8 4.8 291.2 148.9 138.4 3.9 306.5 310.8 Feb 27.71 26.63 27.50 25.42 285.3 149.0 131.4 4.9 285. 1 148.8 130.2 6.1 305.4 305.2 Mar 27.65 26.75 27.49 25.41 288.0 150.4 132.7 5.0 288.0 151.0 131.2 5.8 307.6 307.6 Apr 28. 16 27.31 28.00 25.72 292.8 153.3 134. 1 5.4 293.7 153.8 135.4 4.5 312.2 313.0 May 27.94 26.97 27.78 25.86 292.5 154.2 133.7 4.7 290.8 154.9 130.5 5.4 312.9 311.1 June 28.00 27.12 27.81 26.00 294.4 155.6 132.9 5.9 292.7 155.7 131.5 5.4 315.2 313.5 July 28.33 26.97 28.17 26.07 300.3 161. 1 133.6 5.5 299.4 160.9 132.8 5.8 320.4 319.5 Aug 28.73 27.89 28.55 26.57 306. 1 165.6 134.6 5.8 303.9 166.0 132.0 5.9 325.1 322.9 Sept 29.07 28.47 28.82 27.11 309.9 169.8 135.0 5.1 309.3 169.8 133.7 5.8 326.6 326.0 Oct 28.68 28.22 28.47 27. 18 313.3 172.9 135.2 5.2 313.3 173.2 135.1 5.1 327.8 327.8 Nov 28.76 28.34 28.52 26.91 316.7 175.5 135.4 5.8 315.4 174.9 136.0 4.6 329.8 328.5 Dec 29.20 28.87 28.95 27.13 321.3 178.9 136.0 6.4 325.2 178.1 141.1 6.0 333.4 337.2 1971—Jan 29.38 29.01 29.15 27.22 325.8 183. 1 137.0 5.7 330.7 182.8 142.2 5.6 336.8 341.7 Feb 29.65 29.31 29.39 27.52 331.3 187.6 138.3 5.4 330.9 187.1 136.8 7.0 340.9 340.6 Mar 29.77 29.45 29.57 27.79 334.6 191.7 139.3 3.7 334.6 192.3 137.8 4.5 342.7 342.7 Apr 29.90 29.75 29.73 27.97 338.8 193.3 140. 1 5.4 339.8 193.6 141.5 4.7 344.9 345.9 May 30.32 30.04 30.10 28.26 342.6 195.3 141.5 5.8 340.9 195.8 138.4 6.7 347.9 346.1 June 30.49 30.00 30.30 28.49 345.2 198.2 142.3 4.7 343. 1 197.8 140.9 4.4 350.8 348.8 July 30.66 29.83 30.47 28.62 347.8 199.5 142.9 5.4 346.7 198.9 142. 1 5.7 353.0 352.0 Aug 30.76 29.95 30.56 28.81 349.6 200.2 143.2 6.3 347.1 200.8 140.6 5.8 354.5 352.0 Sept 31.06 30.57 30.87 28.72 351.6 202.3 143.3 5.9 350.9 202.7 141.9 6.3 356.8 356.1 Oct 30.87 30.52 30.71 28.78 353.0 205.3 143.1 4.6 353.0 205.9 142.7 4.3 358.8 358.8 Nov 31.05 30.66 30.81 28.99 356. 1 207.5 143.6 5.0 354.4 206.8 144.3 3.2 362.4 360.6 Dec 31.33 31.20 31.15 29.03 360.3 210.7 143.8 5.8 364.6 209.7 149.2 5.7 365.2 369.5 1972-—Jan 31.75 31.73 31.54 29.19 363.5 213.7 143.7 6.1 368.6 213.4 149.2 6.0 368.4 373.5 Feb 31.68 31.64 31.52 29.38 366.0 216.5 145.2 4.3 365.7 215.9 143.7 6.1 370.5 370.1 Mar 32.00 31.90 31.81 29.69 370.2 217.5 147.2 5.5 370.2 218.1 145.5 6.6 374.6 374.6 Apr 32.57 32.45 32.41 29.83 374.1 219.3 147.6 7.2 375.3 219.8 149.0 6.5 378.3 379.5 May 32.79 32.68 32.65 29.92 378.9 222.3 148.4 8.2 377.0 223.1 145.1 8.8 383.1 381.2 June 32.99 32.89 32.79 30.17 380.9 225.3 149.3 6.3 378.6 225.2 147.8 5.7 385.1 382.8 July 33.17 32.93 32.97 30.35 384.4 227.3 150.7 6.3 383.2 227.1 150.1 6.1 388.5 387.4 Aug 33.41 33.02 33.22 30.60 387.3 230.1 151.7 5.5 384.5 231.3 149.0 4.3 391.6 388.9 Sept 33.38 32.84 33.17 30.98 390.4 233.0 152.4 5.0 389.6 233.8 150.9 4.9 394.5 393.7 Oct 33.80 33.25 33.59 31.07 394.1 235.7 152.9 5.6 394.1 236.2 152.5 5.4 398.2 398.2 Nov 31.93 31.33 31.58 29.64 398.4 238.9 152.9 6.6 396.4 237.6 153.7 5.1 402.6 400.6 Dec 31.46 30.41 31.17 29.09 402.0 242.0 154.5 5.6 406.8 240.7 160.1 6.1 406.4 411.2 1973-—Jan 32.17 31.01 31.92 29.45 404.7 244.5 154.2 6.0 410.4 243.8 160.0 6.6 409.2 414.9 Feb 31.67 30.08 31.46 29.43 409.4 249.7 154.0 5.7 409.0 248.5 152.4 8.1 413.9 413.5 Mar 31.94 30.12 31.73 29.63 416.3 255.9 153.3 7.1 416.3 256.2 151.6 8.5 421.1 421.1 Apr 32.27 30.56 32.05 29.89 421.0 260.6 153.4 6.9 422.3 260.5 154.9 6.8 426.1 427.3 May 32.43 30.59 32.28 30.09 425. 1 263.9 154.8 6.4 423.0 264.5 151.4 7.0 430.3 428.2 June 32.46 30.61 32.22 30.51 428.9 266.2 156.3 6.4 426.3 265.9 154.8 5.6 433.9 431.3 July 33.57 31.62 33.29 31.27 431.1 268.8 156.9 5.4 429.9 268.5 156.2 5.1 437.0 435.7 Aug 33.92 31.76 33.75 31.99 436.7 274.2 156.8 5.7 433.7 276.6 154.0 3.1 443.5 440.4 Sept 34.19 32.34 33.97 32.37 438.6 277.0 156.2 5.4 437.7 279.0 154.7 4.1 445.3 444.4 Oct 34.93 33.45 34.70 32.83 439.7 277.9 156.5 5.2 439.7 278.8 156.1 4.8 446.2 446.2 Nov 34.87 33.48 34.63 32.78 440.4 277.8 157.5 5.1 438.2 276.6 158.3 3.2 446.8 444.6 Dec 35.16 33.87 34.86 32.97 442.2 280.0 158.2 3.9 447.5 278.5 164.0 5.0 448.7 454.0 11997744--—Jan 35.82 34.77 35.66 32.82 446.8 284.1 157.5 5.1 453.0 283.1 163.4 6.5 453.3 459.5 Feb 35.12 33.92 34.93 32.90 447.5 287.4 157.9 2.2 447.1 285.7 156.3 5.1 454.4 454.0 Mar 34.98 33.66 34.84 33.13 450.4 288.6 158.7 3.2 450.4 288.6 156.9 4.9 457.9 457.9 Apr 35.88 34.15 35.70 33.66 461.2 296.6 160.0 4.6 462.5 296.2 161.5 4.8 469.2 470.6 36.52 33.93 36.34 34.26 467.0 302.3 159.1 5.6 464.7 303.0 155.6 6.1 475.8 473.5 36.74 33.73 36.54 34.71 472.9 307.0 160.6 5.3 470.0 306.4 158.9 4.7 481.2 478.4 July 37.40 34.10 37.24 34.96 475.7 310.7 160.7 4.2 474.3 310.1 160.0 4.1 484.9 483.5 37.27 33.93 37.08 35.27 478.5 312.4 159.9 6.2 475.1 315.3 157.0 2.9 487.5 484.2 Sept 37.28 34.00 37.09 35.30 480.6 314.4 159.9 6.3 479.6 317.2 158.3 4.1 489.1 488.2 Oct.p 36.88 35.06 36.73 34.91 480.4 317.2 159.4 3.7 480.4 318.6 159.0 2.7 488.2 488.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF THE MONEY STOCK MEASURES 827 NOTES TO TABLES 1 Includes (1) demand deposits at all commercial banks other than 6 At all commercial banks. those due to domestic commercial banks and the U.S. Govt., less 7 Averages of daily figures. Member bank reserve series reflects cash items in the process of collection and Federal Reserve float; actual reserve requirement percentages with no adjustment to eliminate (2) foreign demand balances at Federal Reserve Banks; (3) currency the effect of changes in Regulations D and M. outside Treasury, Federal Reserve Banks, and vaults of all commerical 8 Reserves available to support private nonbank deposits are debanks. fined as (1) required reserves for (a) private demand deposits, (b) 2 Includes—in addition to currency and demand deposits—savings total time and savings deposits, and (c) nondeposit sources subject deposits, time deposits open account, and time certificates of de- to reserve requirements, and (2) excess reserves. This series excludes posit (CD's) other than negotiable time CD's issued in denominations required reserves for net interbank and U.S. Govt, demand deposits. of $100,000 or more by large weekly reporting commercial banks. 9 Averages of daily figures. Deposits subject to reserve require- Excludes time deposits of the U.S. Govt, and of domestic commercial ments include total time and savings deposits and net demand debanks. posits as defined by Regulation D. Private demand deposits include 3 Includes Mi plus the average of the beginning- and end-of-month all demand deposits except those due to the U.S. Govt., less cash deposits of mutual savings banks and savings capital at savings and items in process of collection and demand balances due from domestic loan associations. commercial banks. 4 Negotiable time CD's issued in denominations of $100,000 or 10 Total member bank deposits subject to reserve requirements, more by large weekly reporting banks. plus Euro-dollar borrowings, loans sold to bank-related subsidiaries 5 Average of beginning- and end-of-month deposits at mutual and certain other nondeposit items. This series for deposits is referred savings banks and savings capital at savings and loan associations. to as "the adjusted bank credit proxy." NOTES relating to changes in series over the 1968-74 period for the ta ss on pp. 822-26 are as follows: 1. Effective Jan. 11, 1968, the reserve requirement of reserve city to pay cash items presented by a Federal Reserve Bank on the day of banks against net demand deposits in excess of $5 million was in- presentation in funds available to the Reserve Bank on that day. creased from 16per cent to 17 per cent. This action increased These changes reduced required reserves approximately $2.5 billion, required reserves approximately $360 million and RPD's $310 million. effective Nov. 9; and $1.0 billion, effective Nov. 16, and increased 2. Effective Jan. 18, 1968, the reserve requirement of country required reserves $300 million, effective Nov. 23. On the same dates banks against net demand deposits in excess of $5 million was in- RPD's were reduced $2.3 billion and $785 million and increased creased from 12 per cent to 12 Yt per cent. This action increased $235 million, respectively. required reserves approximately $190 million and RPD's $170 million. 8. Effective June 21, 1973, the Board amended its Regulation D 3. Effective Apr. 17, 1969, the reserve requirement of all member to establish a marginal reserve requirement of 8 per cent against banks against net demand deposits was increased percentage point. certain time deposits and to subject to the 8 per cent reserve require- This action increased required reserves approximately $660 million ment certain deposits exempt from the rate limitations of the Board's and RPD's $590 million. Regulation Q. In addition, reserves against certain foreign branch 4. Effective Oct. 16, 1969, a 10 per cent marginal reserve require- deposits were reduced from 10 per cent to 8 per cent. These changes ment was established on certain foreign borrowings, primarily Euro- had little effect on required reserves or RPD's. dollars, by member banks and on the sale of assets to their foreign 9. Effective July 12, 1973, reserve requirements were imposed branches. This action increased required reserves and RPD's ap- against finance bills. This action increased required reserves and proximately $400 million. RPD's approximately $90 million. 5. Effective Oct. 1, 1970, the reserve requirement of all member 10. Effective July 19, 1973, the reserve requirement against all banks against time deposits (other than savings deposits) in excess net demand deposits, except the first $2 million, was increased Vi of $5 million was reduced from 6 per cent to 5 per cent. At the same percentage point. This action increased required reserves approxitime, a 5 per cent reserve requirement was imposed against funds mately $760 million and RPD's approximately $670 million. obtained by member banks through the issuance of commercial 11. Effective Oct. 4, 1973, the marginal reserve requirement against paper by their affiliates. This action reduced required reserves and certain time deposits was increased from 8 per cent to 11 per cent. RPD's approximately $500 million (net). This action increased required reserves and RPD's approximately 6. Effective Jan. 7, 1971, the reserve percentage required to be $465 million. maintained against certain foreign borrowings, primarily Euro- 12. "Effective Dec. 27, 1973, the marginal reserve requirement dollars, by member banks and the sale of assets to their foreign against certain time deposits was reduced from 11 per cent to 8 per branches was raised from 10 per cent to 20 per cent. This action had cent. This action reduced required reserves and RPD's approximately little effect on required reserves and RPD's. $360 million. 7. Effective Nov. 9, 1972, Regulations D and J were revised to 13. Effective Sept. 19, 1974, the marginal reserve requirement (1) adopt a system of reserve requirements against demand deposits against time deposits in denominations greater than $100,000 and of all member banks based on the amount of such deposits held by with more than 4 months maturity was eliminated. This action reduced a member bank, and (2) to require banks—member and nonmember— required reserves and RPD's approximately $510 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Treasury and Federal Reserve Foreign Exchange Operations Interim Report This interim report, covering the period August the German authorities had announced the through October 1974, is the fourth of a series proposed lifting of their reserve requirement on providing information on Treasury and System German residents' borrowings abroad (the foreign exchange operations to supplement the Bardepot), a sharp decline in the dollar was regular series of semiannual reports that are checked by Federal Reserve sales of $16.2 milusually issued each March and September. It lion of marks from balances. was prepared by Charles A. Coombs, Senior The buoyancy of the dollar during the sum- Vice President in charge of the Foreign mer months reflected primarily the pull of unu- Department of the Federal Reserve Bank of New sually high interest rates in New York and the York, and Special Manager of the System Open Euro-dollar market, reinforced by a revival of Market Account. expectations that surplus oil revenues would accumulate in U.S. financial markets after hav- As previously reported, the Federal Reserve had ing saturated investment outlets elsewhere. By repaid by the end of July 1974 all but $64.6 September, however, New York and Euromillion of swap debt to the German Federal dollar interest rates were slipping back from Bank incurred during the first half of the year. their peaks. Disappointing trade figures for both The dollar remained generally buoyant in Au- July and August and news of further rapid gust during the transition of presidential author- inflation of U.S. prices also tended to weaken ity from the Nixon to the Ford administration, the dollar rate. rising against the mark to a level 10 per cent By early October, the exchange markets were above the lows reached in early May. In this showing signs of nervousness as the decline of favorable market situation, the Federal Reserve dollar interest rates continued amid mounting was able to acquire through a series of market evidence of a slackening pace of U.S. business purchases sufficient marks to liquidate the re- activity. Reported diversification of surplus oil mainder of its swap debt to the German Federal revenues from dollars and sterling into conti- Bank and accumulate working balances as well. nental European currencies, and the pessimistic In two instances, however, the Federal Reserve mood at the International Monetary Fund annual found it desirable to intervene to restrain sudden meeting, heightened market fears of renewed selling pressure on the dollar. On August 8-9, exchange-rate volatility. Moderately heavy sellwhen market uneasiness over the political un- ing of dollars developed in early October, and certainties was compounded by release of dis- the Federal Reserve resisted an excessive slipcouraging U.S. wholesale price figures for July, page in the dollar rate by selling a total of $36.1 the Federal Reserve sold $20.8 million of marks million equivalent of marks from balances on from balances, $5.3 million of Dutch guilders October 3-4. The dollar briefly steadied, but on drawn on the swap line with the Netherlands October 9, as the market assessed President Bank, and $2.5 million of Belgian francs, of Ford's anti-inflation proposals, a large buy order which $0.8 million was financed from balances for marks pushed the dollar down sharply, setand $1.7 million drawn under the swap line with ting off more generalized speculative selling of the National Bank of Belgium. These swap dollars. To maintain orderly market conditions, drawings of guilders and Belgian francs were the Federal Reserve sold $104.4 million of quickly repaid through market purchases as the marks: of these, $26 million was financed from dollar recovered. Again on September 3, after balances and $78.4 million was drawn on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

829 FEDERAL RESERVE BULLETIN • DECEMBER 1974 swap line with the German Federal Bank, which in reserves. This drawing was repaid in Nofollowed up by buying an even larger amount vember, prior to maturity. of dollars the next day. This coordinated opera- On September 26, the Federal Reserve Bank tion helped the market to settle down, and, to of New York, after consultations with the Board consolidate the improvement, the Federal Re- of Governors of the Federal Reserve System, serve sold later that day an additional $15.5 the United States Treasury, and other Governmillion of marks drawn on the swap line. ment agencies, acquired the foreign exchange The dollar then steadied against the mark and commitments of the Franklin National Bank. other major European currencies at about 3 per Since disclosure in May of substantial foreign cent below early-September levels, and the exchange losses, Franklin had found it increas- Federal Reserve intervened on only two other ingly difficult to fulfill its maturing contracts as occasions in October. On October 15, the con- other banks limited exchange dealings with it. tinued easing of dollar interest rates and rumors By late September, the situation had worsened, of further diversification of surplus oil revenues and there was a significant risk that Franklin provoked some selling of dollars, and the Fed- might be unable to meet all its remaining comeral Reserve sold $5.8 million of marks to mitments. To avoid a serious weakening of cushion the dollar's decline. On October 23, confidence in the exchange markets and in the market expectations of a still bigger German dollar that could have resulted from a failure trade surplus for September sparked a renewed to honor such exchange commitments, the New flurry of dollar sales, and $3.9 million of marks York Bank acquired Franklin's foreign exwas sold to help stabilize the market. Both of change book, which at the time included apthese Federal Reserve intervention operations proximately 300 forward contracts for purchases were financed by further drawings on the swap and sales of several foreign currencies totaling line with the German Federal Bank. Late in the about $725 million. This action was greeted month, when the dollar firmed somewhat fol- with relief by market participants in this country lowing discount rate cuts in Germany and the and abroad, and the subsequent news of Frank- Netherlands, the Federal Reserve System began lin's insolvency was taken in stride by the to acquire in the market moderate amounts of market with no adverse impact on dollar rates. marks against outstanding swap indebtedness. In summary, Federal Reserve sales of foreign FEDERAL RESERVE SYSTEM DRAWINGS AND currencies totaled $210.5 million equivalent REPAYMENTS UNDER RECIPROCAL CURRENCY over the 3-month period. Sales of German ARRANGEMENTS marks amounted to $202.7 million, of which In millions of dollars equivalent $99.1 million was financed from System balances. The remaining $103.6 million repre- Drawings, or resented drawings under the swap line with the System payments System German Federal Bank and remained outstanding Transactions with— swap (-) swap commit- Aug. 1 commitas of October 31, 1974. In addition, the Federal ments through ments July 31, Oct. 31, Oct. 31, Reserve sold $5.3 million of Dutch guilders 1974 1974 1974 drawn on the swap line with the Netherlands 1.71 Bank and $2.5 million of Belgian francs, of National Bank of Belgium .. 261.8 -1.7J 261.8 103.61 which $1.7 million was financed by a drawing German Federal Bank 64.6 -64.61 103.6 on the swap line with the National Bank of Netherlands Bank 5.31 — 5.3 J Belgium; both of these drawings were quickly Swiss National Bank 371.2 371.2 liquidated. Bank for International Settlements (Swiss francs) 600.0 600.0 Also during the period, on August 21, the Bank of Mexico drew the full $180 million Total 1,297.5 | i™'^} 1,336.5 available under the swap arrangement with the Federal Reserve to cover a temporary shortfall NOTE.—Discrepancies in totals are due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Statements to Congress Statement by Arthur F. Burns, Chairman of the 1974—namely, high rates of inflation and Board of Governors of the Federal Reserve weakness in production. System, before the Joint Economic Committee Furthermore, the increases in the price of oil of the U.S. Congress, November 27, 1974. have added to the imbalances that have made the current period of economic weakness so unusual by historical standards. Some sectors No economic event in a long generation, ex- that depend heavily on a plentiful supply of cluding only wartime upheavals, has so inexpensive fuel—such as the automobile inseriously disrupted our economy as the manipu- dustry—have had to contend with sharp declines lation of oil prices and supplies over the past in sales and considerable idle capacity. At the year. The fourfold increase in the international same time, the oil crisis bolstered the demand price of oil has compounded the domestic eco- for energy-saving equipment and stimulated the nomic problems of other oil-importing nations production of alternative sources of energy. as well as our own. International financial rela- Thus, the energy crisis contributed to the tionships have been upset. Plans to reform the tightness in markets for business capital goods international monetary system have been par- that marked much of this past year. tially derailed. And with further interruptions The adverse effects of rising oil prices have in the flow of oil still a possibility to be reckoned been felt even more acutely in some foreign with, a great cloud of uncertainty now surrounds countries than in the United States. This year, the economic future of nations around the inflation is proceeding at historically high rates world. throughout the industrial world, while output is My remarks this morning will concentrate on growing only slowly or actually declining. In some of the implications of high oil prices for Japan—which has been particularly hard hit international finance—as this committee has re- because of its heavy dependence on imported quested. But I cannot be silent on the bearing oil—consumer prices are 24 per cent higher than of oil prices on our domestic economy or our a year ago, while economic activity is below international political position. the level of 1973. This weak performance of The manipulation of oil prices and supplies the Japanese economy is particularly striking by the oil-exporting countries came at a most when viewed against the background of the inopportune time for the United States. In the preceding decade, when the output of Japan middle of 1973, wholesale prices of industrial grew at an average annual rate of over 10 per commodities were already rising at an annual cent. rate of more than 10 per cent; our industrial At the other end of the spectrum, several plant was operating at virtually full capacity; countries—most notably Canada—have gotten and many major industrial materials were in off rather lightly because of their plentiful doextremely short supply. Inflationary expecta- mestic supplies of oil. Even these countries, tions were therefore becoming more deeply in- however, have been adversely affected by the grained at the very time when inflation was combination of inflationary pressures and slugcurtailing the purchasing power of worker in- gish economic activity of their trading partners. comes and creating some weakness for big- Economic difficulties are by no means conticket items in consumer markets. Thus, the oil fined to the industrial countries. In particular, embargo, together with the huge increase in oil because of the heavy reliance on oil in the prices that began in the fall of 1973, contributed production of fertilizers, the high price of oil to the twin economic problems plaguing us in has contributed to the danger of widespread Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 831 starvation in a number of the less developed being maintained. During the first 10 months countries. of 1974, OPEC sterling holdings increased by On the other side of the ledger, the increases the equivalent of about $6% billion. Again, in the price of oil have resulted in a spectacular most of this sum has gone into short-term assets, jump in the income of members of OPEC—that and only relatively small amounts have been is, the Organization of Petroleum Exporting invested in government bonds, private securi- Countries. The United States alone will spend ties, and real estate. about $27.5 billion on fuel imports this year, The OPEC holdings thus far specified—in the in contrast to $8.8 billion for substantially the United States, Britain, and the Euro-currency same volume of imports in 1973. The higher markets—account for roughly three-quarters of price of imported oil has in effect been a heavy the total increase of $45 billion of OPEC assets. tax on American consumers, and it has taken Of the remainder, an estimated $3% billion has its toll in weaker domestic markets. been loaned to governmental bodies in conti- Through the first 10 months of 1974, the nental Western Europe and Japan. Bonds issued OPEC nations have received from other coun- by international financial institutions, or loans tries about $75 billion in oil revenues, nearly to the International Monetary Fund for use under three times the amount obtained during the the Oil Facility, account for $2 billion. Another whole of 1973. The imports of OPEC nations $2 billion has been devoted to grants or credits have risen rapidly in percentage terms, but they to less developed countries, either directly or have fallen far short of their increased revenues. through contributions to regional development As a result, oil-producing countries have banks. Egypt has probably been the largest achieved an estimated $45 billion surplus on recipient of such aid. The remaining increases goods and services during the first 10 months in OPEC assets—estimated at $4 billion—have of this year. Most of this sum has been invested been scattered among other items, including in highly liquid short-term instruments in the private securities and real estate in continental Euro-currency markets and in the British and Europe and Japan. U.S. money markets. To date, the huge financial flows to and from Of the $45 billion, about $10% billion has OPEC countries have been handled mainly— been placed in the United States. This includes and also reasonably well—by private markets, about $5 billion in marketable securities issued particularly commercial banks. But there is no by the Federal Government or its agencies, room for complacency regarding the future. chiefly Treasury bills. Most of the remainder Because of the lag in payments to the oilhas been placed on deposit in our banks, with producing countries, the peak rates of financial scattered amounts invested in real estate, bank flows to these countries have been experienced acceptances, and other private securities. only for a few months. Greater strains in finan- Of the total increase in OPEC assets of about cial markets may well develop in the future not $45 billion, by far the largest share—about only because of new financial flows to the OPEC $16% billion or more than one-third of the countries, but also as a result of the growing total—has gone into the Euro-currency market. volume of assets that they will already have Nearly all of this is in the form of Euro-dollar acquired. deposits, the average maturity of which is quite As a matter of arithmetic, the volume of short. A large proportion consists of 2-day call foreign assets accumulated by the OPEC coundeposits, and most of the remainder run 6 tries will depend on four factors: first, the flow months or less. Banks located in Great Britain of oil revenues to the OPEC countries; second, have been the predominant recipients of these the flow of their other earnings, particularly deposits. investment income; third, the expenditures of Several of the oil-exporting countries—nota- the OPEC countries on imports of goods and bly Kuwait, the United Arab Emirates, and services; and fourth, the financial resources that Nigeria—have traditionally kept part of their these countries transfer to others in the form reserves in sterling. Those traditional ties are of aid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Roughly speaking, oil revenues of the OPEC of economic and political power among the nations will amount to something in excess of countries of the world. This of itself carries $100 billion per year, if their current oil exports dangers for our country's future. In addition, and prices are maintained. This is four times the huge and growing financial reserves of as large as the figure for 1973. On the import OPEC countries may cause very serious probside, some of the OPEC countries—such as In- lems for some of the countries—both in the donesia, Iran, Nigeria, and Venezuela—have industrial and in the less developed parts of the large absorptive capacities. But a substantial world—that will simultaneously be piling up, proportion of the earnings of other oil export- or even just handling, the enormous debts. ers—notably Saudi Arabia and the States of the Clearly, as the financial assets in the hands Persian Gulf—will not be spent for additional of the OPEC countries grow, the burden of imports in the near future. The two other key servicing these assets will grow. The burden of factors in the picture—the flow of investment future repayment will grow. Furthermore, as the earnings to the OPEC countries and the transfer potential for shifts in deposits from one bank of resources from the OPEC nations to the less to another increases, financial institutions here developed countries—are as yet quite small and there may become vulnerable. So too may compared to the flow of oil revenues. While the foreign exchange markets if funds should be future volume of aid by the OPEC countries is moved abruptly and on a large scale from one uncertain, their investment earnings promise to currency into another. These dangers can be grow at a very rapid rate. easily exaggerated, but they cannot be dis- All this suggests very large OPEC sur- missed. Nor can we ignore the possibility that pluses—of perhaps $55 billion to $60 billion this or that foreign industrial country, already in 1975, something like $50 billion in 1976, finding itself in a weakened position, may be and continuing large surpluses for at least an- unable to adjust sufficiently to the burdensome other five years. The practical counterpart of price of oil and as a result suffer economic and these surpluses would be the accumulation of political collapse. a huge mountain of debts by the oil-importing As I have already noted, commercial countries—unless the price of oil comes down banks—particularly banks in the Euro-currency or unless the consuming nations take major steps markets—have been playing a major role as to reduce dependence on imported oil. intermediaries in the oil-related financial flows, In view of the enormous debts in prospect taking the deposits of the OPEC nations and for oil-importing countries, it is only natural for relending them. Thus far, they have been able governmental leaders and private financiers to to cope with the strains brought on by the oil concern themselves with "recycling." But financing. But OPEC money cannot continue to preoccupation with "recycling" techniques has be directed to the banks on anything like the had the unfortunate effect of diverting attention recent scale. from the fundamental need to bring down the Financial prudence sets limits to the willingprice of oil. Unless that is done, it is extremely ness of banks to rely on large, interest-bearing, doubtful whether the financial problems released potentially volatile deposits from relatively few by the huge increase in the price of oil will prove sources. Banks must be concerned that the mamanageable. As a practical matter, "recycling" turity structure of their assets and liabilities does simply means that oil-importing countries will not endanger their liquidity. They must be conslip more and more deeply into debt. Piling debt cerned that their exposure in any one country on top of debt—or speaking more realistically, does not become excessive. They must be conpiling dubious debt on top of good debt—neither cerned about the decline in the ratio of their can nor should go on indefinitely. capital to their liabilities. The well-publicized If the price of oil remains at anything like difficulties of several banks heavily engaged in its present level—and there are repeated stir- international finance have served as a warning rings in OPEC countries to move it still that bankers have not overlooked. Nor have higher—there will be a massive redistribution their regulators been entirely silent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 833 It is clear, therefore, that banks cannot pru- be subjected. If the weaker countries are left dently continue to play the role of intermediary unprotected to face their oil bills, they may be for flows of oil money to the extent that they forced into special arrangements with oilhave in the recent past. Indeed, as banks have producing countries. Such arrangements would moved toward the limits of sound interme- undercut the bargaining power of the oil-condiation, they have begun to shave the interest suming nations and delay the day when the rates at which they will accept large new de- present exorbitant oil prices are reduced. posits on a short-term basis. In recent months, It is toward the goal of unity and mutual aid OPEC countries have not put so large a share among the industrial countries that a new initiaof their assets in the Euro-currency markets as tive has recently been announced by Secretary they did in the first half of 1974. And there Kissinger and elaborated by Secretary Simon. have been some indications of larger diversifi- The American proposal for a new financial cation of OPEC holdings among countries. mechanism, to be developed in association with As yet, however, there has been no large shift the Organization for Economic Cooperation and by OPEC nations into longer-term assets; as Development, would provide stand-by financial noted earlier, most of their holdings continue assistance to participating countries that find to be short-term assets. This may simply reflect themselves in difficulty after reasonable efforts a lag in the adjustment of the OPEC countries onx their part to deal with their oil import and to their newly won affluence. As large and balance of payments problems. The proposal is growing creditors, they have an increasing stake intended to promote cooperation among oil-imin international financial stability, and they porting countries and to facilitate rational diashould contribute to it by moving more rapidly logue with the oil-exporting countries. It is not to acquire longer-term assets. Further reductions intended to replace the private market and other in the interest rates paid on large short-term official channels such as the International Mondeposits would hasten such movement. etary Fund, but rather to supplement them. Even so, the plight of countries whose weak The details of the American proposal remain financial position makes them unable to borrow to be worked out, and the proposal itself must in international financial markets will remain still be negotiated with other countries. It is very worrisome. To be sure, it is desirable that nevertheless clear that any new financing facility they, along with other oil-consuming nations, must have sufficient resources at its disposal to look sternly to measures of oil conservation and meet the needs of countries in difficulty. Unless the development of alternative sources of power that is assured, the new facility will not serve as a means of controlling their deficits. But as the purpose of providing mutual security to its long as oil prices remain at their present level, participants. In consideration of this security, a huge over-all deficit will remain for the oil participating countries should undertake coopimporters as a group; and some countries will erative efforts to reduce dependence on oil imhave disproportionately large deficits. If help is ports. They should also undertake to follow not provided to those in a weak financial situa- responsible adjustment policies, avoiding the tion, they may be driven toward beggar-thy- use of trade restrictions. The facility might be neighbor trade policies, thus disrupting interna- financed through direct contributions by the tional trading relationships. They may be driven participating governments or through loan guartoward excessively tight domestic policies, antees, with the credit risks being shared. In threatening a prolonged recession and political either case, congressional authority will be disorder. And in their desolate need, they may needed for U.S. participation. be tempted to bend to the political will of The program proposed by the administration oil-exporting countries in order to obtain loans. thus has the objective of bringing the major It is therefore to the interest of the United oil-consuming countries together in a common States and the entire community of industrial effort. It has two major aspects: cooperation to nations that we develop institutions to ease the reduce dependence on imported oil and financial financial strains to which any one of them may cooperation. Financial cooperation is important; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 FEDERAL RESERVE BULLETIN • DECEMBER 1974 it can contribute to international economic and the threat of embargo by increasing our storage political stability in the face of large oil deficits. capacity. But financial cooperation alone is not enough. This October, the President outlined a number Even with an orderly financing of deficits, the of proposals to conserve energy and to develop immense burden of carrying and ultimately alternative domestic sources. The President's repaying the debts will still remain. Financial program included legislation to require the use cooperation may ease the transition, but it does of coal or nuclear power in new electric gennot answer the most troublesome question: "A erating plants, and the conversion of existing transition to whatT' plants to coal. It included proposals for gasoline The fundamental problem is the huge oil bill savings on new automobiles, for fuel savings of the importing countries, and a fundamental by industry, and for further conservation within solution requires that the price of oil be reduced. the Government. The immediate objective of the The OPEC cartel will not last forever, and the program was to achieve a reduction of 1 million most promising way of breaking or weakening barrels a day in oil consumption by the end of it is to bring about changes in the demand and 1975. These proposals by the President deserve supply relationship of the oil market. Already strong support from the Congress and the gensome change in this relationship is taking place. eral public. Excess capacity of oil producers is now much While the President's program emphasizes larger than it was last year. New oil discoveries voluntary actions, it is well to keep in mind have occurred in Bolivia, China, Malaysia, and that he has indicated that more stringent meas- Mexico, to name a few. The proven oil re- ures to reduce dependence on imported oil may sources of the North Sea have doubled in the become necessary in the future. In view of the past year. In the United States, the potential of gravity of the international energy situation, I off-shore oil fields is enormous. The high price believe that some preliminary planning on of oil is thus stimulating the search for new oil stronger measures to reduce domestic consumpfields, and also the development of coal, nuclear tion should be undertaken at once. These might power, and other alternative sources of energy. include a sizable tax on gasoline, or on imported While the effects of these adjustments on the oil, or on automobiles according to their weight supply side will not become quickly visible, or horsepower. immediate adjustments are already taking place The recent report of the Federal Energy Adon the demand side. Oil consumption of the ministration on Project Independence also deimporting countries will be about 3 per cent less serves prompt attention by the Congress. While this year than last. A number of countries have this report does not offer specific recomrecently stepped up their efforts to save oil. mendations for the reduction of oil imports, it France has set a limit on expenditures for oil does provide a wealth of information and analimports. The recent British budget again hiked ysis regarding the steps that might be taken to the gasoline tax, and as a consequence the increase domestic sources of energy, to con- British motorist will now pay about $1.20 per serve fuel, and to establish standby emergency gallon. programs, including stockpiling. It is high time The United States consumes about 30 per cent that we moved from the rhetoric to the reality of world oil production. Partly for that reason, of Project Independence, and the FEA study can partly also because of our strategic role in the help to speed and guide our path to this objecworld, other nations look to us for leadership. tive. The administration has invited other industrial In conclusion, I can only say to this commitcountries to join us in a vigorous cooperative tee that the problems caused by the recent maeffort to deal with the grave oil problem. We nipulation of oil prices and supplies are among should now do our part by moving more deci- the gravest with which this Nation has had to sively to conserve energy, by moving more re- contend under peacetime conditions. Unless we solutely to develop domestic alternatives to im- take stronger measures than we have yet done ported oil, and by reducing our vulnerability to to conserve oil, to develop alternative sources Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 835 of energy, and to lead other industrial nations carried out prudently—if possible, without inin a common policy to lighten the burdens that tensifying the recessionary tendencies that are OPEC oil actions have imposed on the world, already developing in our economy. The alterwe may endanger our Nation's future. The pol- native of drift, I fear, may lead to a permanent icy that I have advocated this morning is a decline of our Nation's economic and political policy of austerity. I recognize that it must be power in a very troubled world. • Statement by Arthur F. Burns, Chairman, but merely seeks to delay the date for making Board of Governors of the Federal Reserve this legislation effective. That is also the System, before the Subcommittee on Interna- Board's position. tional Finance of the House Committee on The Congress has set December 31 as the Banking and Currency, December 5, 1974. outside date for ending the restrictions on private ownership of gold. However, the President I am pleased to appear before this committee was given the authority to end these restrictions to give you the views of the Board of Governors sooner, if he found that the international moneof the Federal Reserve System on H.R. 17475. tary position of the United States would not be This bill seeks to postpone the date, now set adversely affected by such action. The language by Public Law 93-373, when citizens of the of Public Law 93-373 clearly indicates that United States can again "purchase, hold, sell, although the Congress wanted the prohibition or otherwise deal with gold." on private ownership of gold to end in the near I respect the views expressed by the Secretary future, the Congress was also concerned about of the Treasury in opposing H.R. 17475, and the adverse consequences that could result from I also recognize that there is considerable oppo- an abrupt ending. sition in the Congress to any change in the It is difficult to foresee with any confidence provisions of Public Law 93-373. In the latter the effects of removing the ban on private ownpart of my testimony, I shall therefore address ership of gold later this month. True, there is myself to measures that can and should be taken considerable interest in the reopening of the to limit the risks and minimize some of the private gold market on the part of some busiadverse consequences that may flow from im- nessmen and financiers; but there is also great plementation of this law. With good manage- uncertainty about the extent to which our citiment, I believe that we shall be reasonably zens will actually want to acquire and hold gold. successful; but it is my duty, nevertheless, to Historically, gold has been regarded by many point out that prompt removal of present re- people as a hedge against inflation or as a means strictions on private trading in gold could com- of protection against a decline in the exchange plicate a financial situation that is already beset value of a country's currency. At present, some by strains and stresses. individuals also regard gold as an asset whose In recent debates on the gold problem, Mem- value is more dependable than that of common bers of the Congress took the position that gold stock or other financial investments. In the clihas ceased to serve as the foundation of our mate of uncertainty that now prevails, with fears monetary system, that indefinite continuance of of inflation continuing to spread, the opportunity the prohibition of private gold holdings can no to own gold might seem attractive to large longer be justified, and that the time has there- numbers of people in the United States. fore arrived for restoring the right and freedom There is fragmentary evidence supporting this of our citizens to buy or sell gold. As I under- view. As already noted, a lively interest has stand the proposal of H.R. 17475, it in no way developed among banks, stock brokers, curquestions the objectives of Public Law 93-373 rency and metals dealers, and commodity ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 FEDERAL RESERVE BULLETIN • DECEMBER 1974 changes in preparing for private gold trading. removal of the prohibition on gold ownership Also, the recent run-up in the price of gold in could lead to excessive speculation in the gold European markets suggests that market partici- market. Since annual world production of gold pants abroad anticipate the development of an is rather small, and the gold market abroad has active market in the United States. typically been rather thin, changes in demand Some sources close to the gold market have have often led to wide swings in the price of attempted to estimate the potential demand for gold. Given these characteristics of the market, gold in this country. We at the Board of Gover- removal of the ban on gold ownership might nors have no estimate of our own and are lead for a time to exceptionally large movements skeptical of the guesses being bandied about. in the price of gold, and therefore encourage But we, as well as others, recognize that when widespread speculation. Speculative forces the gold market is reopened, people might rush originating in the gold market may spread to in with funds transferred from savings accounts, the markets for silver and other precious metals common stocks, or other financial assets. The and from there to other commodity markets. financial wealth of households, personal trusts, Eventually, a reversal of such a speculative and nonprofit organizations in the United States development would be practically inevitable, so is enormous. Although we can be quite sure that that many investors in gold and other commodthe transfer of accumulated savings to the gold ities would suffer losses. If events took such market will not be more than a tiny fraction a course, our economy could be injured. of this total, the diversion of funds from cus- The risks associated with a reopening of the tomary financial channels could still come to an gold market extend also to the exchange value of uncomfortably large sum in dollars. the dollar in international markets. Apart from The resulting disturbance of the money and sales by the Treasury, any substantial demand capital markets—especially in the period imme- for gold by our citizens would have to be met diately following removal of the ban on gold by gold imports. The consequence might be a ownership—would tend to have adverse effects worsening of our international balance of trade on the sectors of the economy that are most and downward pressures on the dollar in foreign heavily dependent on credit. Thrift institutions exchange markets. and commercial banks have only recently begun These pressures on the dollar could, of to experience improved deposit inflows. Any course, be checked by sales of gold from our sizable withdrawal of funds from savings ac- Nation's monetary reserves. But there are risks counts would, of course, dim the prospects for associated also with this course of action. Since a larger supply of mortgage credit in coming the precise role of gold in the international months. Recovery of the homebuilding industry monetary system is yet to be determined, it might therefore be retarded. would hardly be desirable to dispose of any Money flows to the equity and debt markets sizable part of our reserve assets. may also be reduced as investors move to ac- Clearly, therefore, various adverse consequire gold. At present, prices of common stocks quences for our financial markets and our econare severely depressed. The corporate and mu- omy may stem from a reopening of the gold nicipal bond markets, meanwhile, are handling market at the end of this month. No one can a huge volume of new issues. Borrowers in now say with any confidence how serious these these markets are counting on an ample supply consequences are likely to be. The risks assoof funds to refinance maturing debt and to raise ciated with private ownership of gold are, howcapital for new business ventures or new public ever, postponable, and I see no material advanundertakings. To the extent that the public's tage to the Nation in incurring these risks under savings are diverted from these markets to gold, present circumstances. The prudent course of business firms and other borrowers would find action would be to delay the reopening of the it more expensive and more difficult to carry gold market until a more propitious time. In the out their capital expenditure programs. Board's judgment, therefore, the proposal of Besides these effects on credit flows, early H.R. 17475 goes in the right direction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 837 At the same time, the Board recognizes that on the regulatory status of gold transactions by the bill presently before this committee may not banks. Since 1968 banks have been able to buy be greeted with enthusiasm by the Congress and and sell gold for industrial or artistic uses under that the development of plans for implementing a Treasury license. At present, only two banks the provisions of Public Law 93-373 must go are actively engaged in such transactions. If forward. private gold ownership goes into effect on De- It will be important to do what we reasonably cember 31, 1974, banks will no longer require can to minimize the risks associated with that Treasury licenses to deal in gold, and many statute. I expressed doubts earlier about the banks may become involved in gold transactions wisdom of disposing of any large amount of or in providing gold-related services to their gold at the present time. We should be ready, customers. nevertheless, to make prudent use of the Treas- In anticipation of this possibility, the Federal ury's holdings if demands for gold threaten to Reserve has been working jointly with the other have adverse economic or financial conse- bank supervisory agencies to clarify the regulaquences. For example, if large imports of gold tory status of gold transactions. It is expected exerted significant downward pressure on the that the results of this effort will be made exchange value of the dollar, prices of imported available to banks in the near future. products would rise, and this would tend to The Federal regulatory authorities agree that worsen our inflationary problems. Sales from our Nation's financial institutions must proceed the Treasury's gold stock could lessen this cautiously in participating in gold transactions. difficulty, and I therefore endorse the Treasury's Because of the risks inherent in gold trading, intention to auction 2 million ounces of gold some banks may prefer to act only as agents. early in January. In cases where a bank decides to trade in gold Moreover, we will need to bear in mind that for its own account, it would be appropriate to the proceeds of any gold sales by the Govern- do so only in such amounts as may be required ment would enable the Treasury to reduce its to satisfy the needs of customers. It will be borrowing compared with what it otherwise particularly important that banks offering gold would be. This reduced borrowing, in turn, for sale avoid promotional efforts that could lead would tend to lower interest rates on Govern- to unrealistic expectations by bank clients or to ment securities and thus mitigate the adverse adverse effects on public confidence in individeffects on money and capital markets that would ual banks or the banking system. result from large private purchases of gold. The bank examination process must play a Over the long future, however, it would be role in assuring that banks are not exposed to best for the Government to avoid frequent or undue risks because of gold transactions. sizable intervention in the gold market. A Examiners will have to be concerned with a principal reason for abandoning the existing bank's accounting practices in regard to gold, prohibition on gold ownership is the fact that with its recordkeeping for the accounts of cusit infringes on the freedom of our citizens. tomers, with its management expertise in this Periodic sales or purchases by the Treasury to area, and with the additional risks that the bank influence the price of gold would hardly be undertakes in relation to its capital. Banks will consistent with return to a free market for that need to understand that excessive involvement commodity. All in all, it would seem better to in gold transactions, including concentration on let the gold market find its own level and to loans collateralized by gold or otherwise related let the cost of any excesses be borne by those to gold dealings, could constitute an unsafe or investors or speculators who choose to enter that unsound banking practice and therefore become market. subject to the cease-and-desist provisions of the I would like to conclude with a brief comment Financial Institutions Supervisory Act of 1966. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Statement by Robert C. Holland, Member, and trying to devise appropriate measures to Board of Governors of the Federal Reserve improve the performance of banking and bank System, before the Subcommittee on Bank regulation. Supervision and Insurance of the Committee on To give our work focus, we have concen- Banking and Currency, U.S. House of Repre- trated on what we regard as key problem areas. sentatives, December 12, 1974. In our work to date, a half dozen such areas stand out. Certainly one is the attenuation of I am pleased to appear, on behalf of the Board bank capital. Rapid expansion of bank assets, of Governors of the Federal Reserve System, particularly in the larger banks, over the last before your subcommittee on the subject of bank decade has far outpaced the additions that have examination and regulatory structure and proce- been made to bank equity capital. Furthermore, dure. greater leveraging of organizational capital has We at the Federal Reserve are much con- entered the picture by such means as bank cerned with this subject, and we believe that holding companies' issuing debt securities to reforms are urgently needed. The general thrust raise funds to buy new issues of common stock of our concern has been highlighted in Chairman from their bank subsidiaries. Burns' address on this subject before the Amer- To finance their rapid asset expansion, many ican Bankers Association last October. I hope larger banks, in particular, have turned to heavy that the text of that speech will be made a part reliance on liability management, involving the of the record of these hearings. issuance of market-type deposit certificates and The recent two largest bank failures in the other liabilities to raise whatever added funds Nation's history have stirred public interest in are wanted. Such instruments have proved not such banking questions, and the record needs only highly interest-sensitive but also highly to be carefully examined for evidence of possi- confidence-sensitive in time of stress. ble weaknesses in our banking system and pos- Undue banker confidence in their abilities as sible shortcomings in our bank examination and liability managers has sometimes contributed to supervisory procedures. We welcome your sub- the making of excessive loan commitments. committee's decision to focus attention on these Such promises to lend are a practical part of issues, and the Board of Governors looks for- everyday banking, but those promises have not ward to working with the subcommittee and the always been prudently limited to amounts that Congress as a whole in analyzing the problems banks could effectively handle in times of strong and evaluating alternative solutions. credit pressures. We can take considerable encouragement A companion problem has been some deterifrom the fact that the recent failures, worrisome oration in the quality of bank assets. This dethough they were, did not seriously damage our velopment seems to result partly from the financial system or our economy. We believe cost-income squeeze that has been suffered by that our banking system is basically sound and many borrowers and partly from the overly is entirely capable of meeting the current and aggressive lending policies followed by some prospective needs of the economy. We believe banks in recent years. that our bank regulators wound up these two In certain specialized areas of bank activities, bank failure cases successfully. And we believe some trouble signals have also been flashing. that in these cases the Federal Reserve fulfilled One involves foreign exchange risks. In the new its traditional responsiblities as "lender of last world of flexible exchange rates, the opporturesort" effectively. nities for profit by bank foreign exchange Nonetheless, this is no time for complacency. departments can loom larger, but so can the We must endeavor to learn from the difficult risks of loss. Also, the sharp fluctuations and financial experiences of the past year or two if recent historic highs in interest rates have inwe are not to repeat them. In that spirit, we creased the risk of losses in bond trading at the Federal Reserve—and I am sure others departments of banks. These developments have as well—are hard at work poring over the past placed heavy burdens on management systems Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 839 for controlling risks and on the systems of audit It seems reasonably clear that these are areas control relied upon to discipline these two in which we will need to ask the Congress for departments in many banks. legislation. For example, in the Bank Merger Finally, recent experience has suggested to Act the Congress wisely granted an exception us that the public interest would be well served to the 30-day waiting period before a merger if there could be more expeditious resolution may take place when prompt action is necessary of problem bank cases. In the end, such cases to prevent the probable failure of a bank. There have been resolved, but often the time con- is no such waiver authority in the Bank Holding sumed in dealing with these difficulties has Company Act. We are considering proposing aggravated uncertainties and concerns within the legislation to permit such a waiver. financial community. Another legislative suggestion under consid- The Federal Reserve believes that now is the eration is to modify the geographic restraints time to begin to develop and implement correc- on acquisitions by a bank holding company in tive action in each of these areas. As we see emergency situations. It may be that the public it, some needed changes in basic legislation will interest would be better served by permitting have to be brought to the attention of Congress. out-of-State acquisitions in those undoubtedly Other problems can probably be dealt with by rare emergency cases when it might be found means of well-designed regulatory or adminis- that such action is necessary to protect the trative changes. Some of these problems are stability of the regional or national economy and comparatively easy to diagnose and cure; others the competitiveness of the banking system. are extraordinarily complex and difficult. All our Turning to the subject of foreign exchange Board members are giving close attention to supervision and regulation, reviews are under these questions. way of the operations of banks engaged in I am now chairing a wide-ranging variety of foreign exchange activities. Our studies are task forces within the Federal Reserve System giving particular attention to the banks' inforthat are studying these supervisory and regula- mation and audit systems, to their policy contory problems and trying to develop appropriate trols over foreign exchange positions and tradsolutions therefor. This study, which covers all ing, and to the question of whether further the problem areas discussed above and more, measures may be needed to limit the risks inhas been organized in six major sections. These volved. Bank examination treatment of foreign are: resolution of problem banks and bank exchange operations is an important part of this holding company cases; foreign exchange subject. supervision and regulation; bank examinations; Our consideration of bank examinations enbank capital and liquidity standards; longer-run compasses all aspects of bank operations. We bank holding company supervisory and regula- are interested in possible improvements in bank tory policy; and the structure of bank regulatory examination practices and procedures, the early agencies and related reforms. detection of unsound practices, and the possible One of our priority items is to find ways of use of management information systems for resolving problem bank (and problem bank bank examiners and auditors. As a part of this holding company) cases more speedily and effi- project, attention will be given to ways to monciently. itor and constrain excessive loan commitments Our work on the resolution of this subject and other off-balance-sheet promises to lend, starts with a searching examination of the ade- methods to detect and discipline poor quality quacy and efficacy of existing regulatory powers bank loans more effectively, and measures and present practices as a guide to any needed needed to minimize bond trading risks. An legislative, regulatory, or administrative important segment of this work is a critical changes. Closely paralleling this work is an analysis of banks involved in recent failures in assessment of the best methods of ensuring that order to identify possible inadequacies or failstockholder and director responsibilities are met ures of the banks' internal management and in problem cases. audit controls. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 FEDERAL RESERVE BULLETIN • DECEMBER 1974 In the area of bank capital and liquidity forward with it as speedily as possible. We view standards, our analysis is directed toward re- our work as an action program to be put into viewing and sharpening the concept of what is effect by legislative recommendations, changes "adequate" capital and liquidity. We are hope- in regulations, or reforms in administrative and ful this work will lead to the formulation of operating procedures. clarified standards for bank capital and liquidity. I can report the Board already has taken In coordination with the study on bank exami- concrete action on several fronts. Beginning last nations, attention also will be given to the need June, we introduced a "go-slow" policy refor more effective surveillance and enforcement garding bank holding company expansion. This measures. policy remains in effect today; its future will Because of the great importance that bank have to be determined by the Board in the light holding companies have assumed in the banking of emerging economic and financial conditions. system in the last few years, one section of our The policy is evident in cases in which we have study is devoted to longer-run bank holding felt that either an organization's capital or its company supervisory and regulatory policy. liquidity positions have been stretched. We have Work is now going forward on efforts to design denied, in such cases, applications for acquisian information system to monitor activities and tions of other firms in permissible lines of acchanges in bank holding company operations. tivity, except when we felt the public benefits Attention is also being given to the relations of a particular acquisition were exceedingly of nonbanking affiliates to bank holding compa- strong. We have also refused, for the time nies, with particular focus on the possible con- being, to add new lines of activity to the pertribution of nonbanking affiliates to banking missible list for bank holding companies. difficulties. In addition, we have stepped up our informa- The last project relates to the structure of bank tion-gathering and supervisory oversight with regulatory agencies and related reforms. This respect to banks and bank holding companies. subject quite properly occupies a concluding This fall, when circumstances seemed to us position. The analysis involved in all of the propitious, we restructured the reserve requireother projects described above will contribute ments of member banks, raising average reserve to our understanding of the inadequacies—and requirements somewhat on short-dated time deaccomplishments—of the Federal bank regula- posits, but cutting requirements to the statutory tory and supervisory structure. This information minimum on time deposits with over 6 months' should supply a factual foundation for judging maturity. Such action, we felt, would be an whether changes should be recommended in the encouragement to banks to lengthen the average structure of the Federal bank regulatory agen- maturity of their liabilities and thereby reduce cies. One project in this section is looking at the potential volatility of their funds. the relationship between field examining forces, More recently, in coordination with the other both Federal and State, and to means for im- relevant regulatory agencies, we acted to raise proving those relationships. It is perhaps appro- somewhat the interest rates banks could pay to priate to note that many alternatives will be attract time deposits with maturities as long as considered before the Board reaches a conclu- 6 years or more. sion on this sensitive subject. Finally, I might mention that we have just I might mention that we have been in touch sent to the Congress a comprehensive proposal with our sister regulatory agencies regarding for legislation covering foreign banking operathese studies, and we will continue to confer tions in this country. The main thrust of this with them as our work progresses. legislation is to treat foreign-owned bank We realize fully, as I am sure you do, that operations in this country like domestically this re-examination and study is a massive un- owned banks; one effect is to extend certain dertaking. I want to assure you, however, that existing Federal bank regulatory and superviwe at the Board are fully committed to moving sory authority to such operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 841 Many more actions like these will need to the first quarter of 1975 in order to allow ample follow, we believe, in the weeks and months time for the new Congress to study our proposahead. als. We are not sure at this point whether we These have been difficult times for us all, but will be coming forward with a series of recomthey have served to emphasize the need for mendations or with a single comprehensive prompt corrective action. We intend to see that program. In the meantime, of course, we intend improvements in banking and bank regulation to move ahead with regulatory and administraresult from this experience, and we are now hard tive changes as the need dictates. at work to find the best possible solutions. In Mr. Chairman, I appreciate the opportunity this process, we would welcome comments and you have afforded the Board to outline what we suggestions from members of this subcommittee are doing and planning in the areas of bank and other Members of Congress who may wish supervision and regulatory reform. The Board to contribute to this undertaking. looks forward to working with you and the other Our aim is to complete our work on the members of the committee in the 94th Conlegislative portion of our program sometime in gress. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 10, 1974 1. Domestic policy directive The information reviewed at this meeting continued to suggest that real output of goods and services—which had declined in the first half of the year—was changing little in the current quarter and that both the GNP implicit deflator and wage rates were continuing to rise at a rapid pace. Staff projections, like those of 3 weeks earlier, suggested that weakness in real economic activity would persist in the fourth 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 August, according to preliminary indications, industrial production had remained near the level of the preceding 3 months. Although employment in manufacturing establishments declined somewhat during the month—only in part because of strikes—total nonfarm payroll employment rose moderately. The unemployment rate edged up further to 5.4 per cent. Weekly data suggested that retail sales, after a sharp advance in July, had expanded somewhat further in August. Wholesale prices of farm products rose further in the period from mid-July to mid-August, and price increases for industrial products continued numerous. The advance in the index of average hourly earnings for private nonfarm production workers had remained rapid over recent months. In July the consumer price index had risen somewhat less than in the preceding 2 months, reflecting a decline in retail prices of foods. Staff projections that weakness in economic activity would persist in the fourth quarter of this year and in the first half of 1975, like those of 3 weeks earlier, 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 personal income and in personal consumption expenditures would be little, if any, greater than the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

843 RECORD OF POLICY ACTIONS OF FOMC rate of increase in prices; and that the pace of business inventory accumulation would moderate. In recent weeks the exchange rate for the dollar against leading foreign currencies had continued to appreciate, apparently in part because of a favorable shift in net capital flows. In July there had been a net inflow of bank-reported capital, reflecting both a lessening of the outflow of U.S. bank credit to foreigners and a significant increase in liabilities to private foreigners. Foreign lending by U.S. banks appeared to have declined further in August. The U.S. trade deficit, which had narrowed in June, increased appreciably in July, as imports rose somewhat further while exports declined. Expansion in total loans and investments at U.S. commercial banks was moderate in August. Growth in business loans remained relatively strong, but growth in total loans slowed from the fast pace in July and banks further reduced their holdings of U.S. Government securities. The narrowly defined money stock (Mi)1 grew at an annual rate of 3 per cent in August, up somewhat from the slow July pace but still well below the 6 per cent rate of the first half of the year.2 Growth in the more broadly defined money stock (M )3 also 2 picked up a little in August; whereas the performance of passbook savings continued weak, inflows of total time and savings deposits other than large-denomination CD's remained relatively strong. U.S. Treasury deposits increased substantially, and banks reduced their outstanding volume of large-denomination CD's and their use of nondeposit sources of funds. On September 4 the Board announced the removal of the 3 per cent marginal reserve requirement on large time deposits and related instruments maturing in 4 months or more. Deposit experience at nonbank thrift institutions continued weak in August, and growth in the measure of the money stock that includes such deposits (M )4 remained near the reduced rate of 3 Private demand deposits plus currency in circulation. 2The growth rate cited for the quarter is calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. 3Mi plus commercial bank time and savings deposits other than large-denomination CD's. 4M plus time and savings deposits at mutual savings banks and at savings 2 and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 FEDERAL RESERVE BULLETIN • DECEMBER 1974 July. Contract interest rates on conventional mortgages in the primary market and yields in the secondary market for Federally underwritten mortgages continued to rise during August. Market interest rates on most private short-term securities had fluctuated narrowly in the period since the Committee's meeting on August 20. However, yields on Treasury bills moved through a wide range; they rose sharply in late August—when market supplies increased as the Treasury auctioned $2 billion of 299-day bills and raised the size of the regular weekly bill auctions—and then declined in early September. On the day before this meeting the market rate on 3-month Treasury bills was 9.15 per cent, down from an inter-meeting high of 9.74 per cent on August 23 but up from 8.84 per cent on the day before the August meeting. Yields on long-term securities rose moderately, on balance, over the inter-meeting period, reflecting market anticipation of a large volume of Federal agency and corporate offerings. Public offerings of corporate bonds were unseasonally large in August, and a moderate increase was in prospect for September. Offerings of State and local government bonds declined in August but were expected to rise considerably in September. System open market operations since the August meeting had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with moderate growth in the monetary aggregates over the months ahead, while taking account of developments in domestic and international financial markets. Data that had become available a few days after the meeting suggested that in the August-September period M would grow ± at a rate slightly below the lower limit of the range of tolerance that had been specified by the Committee while M would grow 2 at a rate within its range; data available a week later suggested that growth rates for both aggregates had weakened. Accordingly, System operations were directed toward some easing in bank reserve and money market conditions, with the expectation that the Federal funds rate would decline within the IIV2 to 12V2 per cent range that the Committee had specified. At the time of this meeting the funds rate was about 11% per cent, compared with 12V4 per cent at the time of the August meeting. The Committee concluded that the economic situation and outlook called for moderate growth in the monetary aggregates over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 845 the longer run, at rates slightly higher than those contemplated earlier. A staff analysis suggested that monetary growth—although apparently remaining sluggish in September—would pick up in later months as transactions demands for money strengthened. Nevertheless, it appeared likely that if M were to grow at a rate consistent x with the Committee's longer-run objectives for the monetary aggregates, money market conditions would ease somewhat further in the period immediately ahead. Such easing would probably lead to additional declines in market interest rates. The staff analysis suggested that a modest recovery in flows of savings at both banks and nonbank thrift institutions might develop and that upward pressures on mortgage rates might lessen. Demands for bank credit were likely to be tempered by the projected slowdown in the rate of expansion in nominal GNP. In view of sluggish monetary growth since midyear, the Committee decided that the tolerance ranges specified for rates of expansion in the monetary aggregates over the September-October period should be wide enough to accommodate somewhat higher growth rates, should they develop, than those presently thought to be consistent with the money market conditions contemplated. Specifically, for the September-October period the members adopted ranges of tolerance of 3 to 6 per cent and 5 to ll/i per cent for the annual rates of growth in M and M , respectively, x 2 and they 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 6 to 8V2 per cent. The members also 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 IOV2 per cent to as high as 12 per cent, if necessary, in the course of operations. It was understood that in the early weeks of the period the weekly average funds rate would be permitted to decline gradually from its present level of 11% per cent to about 11 lA per cent so long as the monetary aggregates did not appear to be growing at rates above their specified ranges. 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 incon- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 FEDERAL RESERVE BULLETIN • DECEMBER 1974 sistencies appeared to be developing among the Committee's various objectives and constraints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services is changing little in the current quarter, following the first-half decline, and that price and wage increases are continuing large. In August industrial production, according to preliminary indications, remained near the level of recent months, while the unemployment rate edged up to 5.4 per cent. Wholesale prices of farm products rose further, on average, and announcements of increases for industrial commodities continued numerous. In recent weeks, the dollar has continued to appreciate against leading foreign currencies. U.S. bank lending to foreign borrowers diminished in July and apparently also in August, while inflows from abroad increased. The foreign trade deficit, which had narrowed in June, widened in July. In August growth of the narrowly defined money stock was above the low pace of July but well below the 6 per cent annual rate of the first half of the year. Net inflows of time deposits other than money market CD's continued at about the July rate, but the performance of passbook savings at banks—and of total deposits at nonbank thrift institutions—remained weak. Although growth in business loans remained relatively strong in August, growth in total bank credit was moderate, and banks reduced their reliance on large-denomination CD's and nondeposit funds. Interest rates on most short-term market instruments have changed little on balance since mid-August, while rates on most types of longer-term securities have risen further. On September 4 the Federal Reserve announced the removal of the 3 per cent marginal reserve requirement on longer-term large-denomination CD's. 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

RECORD OF POLICY ACTIONS OF FOMC 847 Votes for this action: Messrs. Burns, Black, Bucher, Clay, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Vote against this action: Mr. Hayes. Mr. Hayes, who dissented from this action, observed that inflation and inflationary expectations continued unabated whereas the probabilities, in his view, were against the development of a severe recession. He believed that the pursuit of somewhat higher rates of monetary growth than contemplated earlier—in accordance with the Committee's decision—would signify an inappropriate easing of policy in terms of an immediate decline in the Federal funds rate and in other market interest rates. He favored maintenance of about the current policy of firm monetary restraint, particularly since fiscal restraint was by no means assured at present. Subsequent to the meeting it appeared that in the September-October period the annual rates of growth in the monetary aggregates would be below the lower limits of the ranges of tolerance that had been specified by the Committee. The Federal funds rate recently had been fluctuating around 11 per cent, Vi of a percentage point above the lower limit of its specified range, and the System Account Manager was endeavoring to supply reserves at a rate consistent with some further easing in money market conditions. The members—with the exception of Messrs. Hayes and Winn—concurred in the Chairman's recommendation of October 3 that, in order to provide operating flexibility in the event of evidence of further weakening in the behavior of the aggregates, the lower limit of the funds rate constraint be reduced by Vi of a percentage point, to 10% per cent, for the period remaining until the next Committee meeting. 2. Special authorization relating to foreign currency operations On September 25, 1974, Committee members were advised that the Federal Reserve Bank of New York, after discussions with Franklin National Bank, had developed a plan to purchase the foreign exchange position of Franklin, amounting to approximately $800 million equivalent; that the Board of Governors of the Federal Reserve System had concurred in the proposed arrangement; and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 FEDERAL RESERVE BULLETIN • DECEMBER 1974 that the New York Bank was requesting the Committee's specific approval of such open market transactions in foreign currencies as might be necessary to carry out the arrangement. The members of the Committee voted to approve the following special authorization: The Federal Reserve Bank of New York is authorized and directed, under the provisions of 270.4(e) of the Regulation relating to Open Market Operations of Federal Reserve Banks, to engage in such open market transactions in foreign currencies, including transactions for the System Open Market Account, as may be necessary to carry out the arrangements that have been made by the Federal Reserve Bank of New York, with the concurrence of the Board of Governors of the Federal Reserve System, for the disposition of assets and liabilities of the Franklin National Bank. Votes for this action: Messrs. Burns, Hayes, Black, Bucher, Clay, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Votes against this action: None. This action was taken against the background of the problems that Franklin has been experiencing in covering its foreign exchange commitments, and for the purpose of assisting the foreign exchange markets by avoiding the weakening of confidence that appeared likely to ensue if contracts in the volume Franklin had outstanding were not honored. Under the agreement proposed (and subsequently implemented), Franklin would indemnify the New York Bank against any losses it might incur in fulfilling Franklin's foreign exchange position. 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

849 Law Department Statutes, regulations, interpretations, and decisions FEDERAL DEPOSIT INSURANCE AND "(ii) an officer, employee, or agent of any State of the United FAIR CREDIT BILLING States, or of any county, municipality, or political subdivision thereof having official custody of public funds and lawfully An Act of Congress approved October 28, 1974, investing or depositing the same in time and savings deposits in an insured bank in such State; doubled the basic Federal insurance limits for "(iii) an officer, employee, or agent of the District of deposits and savings accounts in insured banks, Columbia having official custody of public funds and lawfully savings and loan associations and credit unions. investing or depositing the same in time and savings deposits in an insured bank in the District of Columbia; or The Act (P.L. 93-495) also contains fair credit "(iv) an officer, employee, or agent of the Commonwealth billing provisions and prohibits discrimination on of Puerto Rico, of the Virgin Islands, of American Samoa, or of Guam, or of any county, municipality, or political the basis of sex or marital status in granting or subdivision thereof having official custody of public funds and denying credit. The Act reads as follows: lawfully investing or depositing the same in time and savings AN ACT deposits in an insured bank in the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, or Guam, respec- To increase deposit insurance from $20,000 to $40,000, to tively; his deposit shall be insured in an amount not to exceed provide full insurance for public unit deposits of $100,000 $100,000 per account. per account, to establish a National Commission on Elec- "(b) The Corporation may limit the aggregate amount of tronic Fund Transfers, and for other purposes. funds that may be invested or deposited in time and savings deposits in any insured bank by any depositor referred to in subparagraph (A) of this paragraph on the basis of the size Be it enacted by the Senate and House of of any such bank in terms of its assets: Provided, however, Representatives of the United States of America such limitation may be exceeded by the pledging of acceptable securities to the depositor referred to in subparagraph (A) of in Congress assembled, this paragraph when and where required." (b) Title IV of the National Housing Act is amended— (1) in section 401(b) (12 U.S.C. 1724(b)), by striking TITLE I—AMENDMENTS TO AND EXTEN- out "Funds" in the third sentence and inserting in lieu thereof the following: "Except in the case of an insured member SIONS OF PROVISIONS OF LAW RELAT- referred to in the preceding sentence, funds"; ING TO FEDERAL REGULATION OF DE- (2) in section 405(a) (12 U.S.C. 1728(a)), by inserting after "except that no member or investor" the following: POSITORY INSTITUTIONS "(other than a member or investor referred to in subsection (d))"; and FULL DEPOSIT INSURANCE FOR PUBLIC UNITS (3) by adding at the end of section 405 (12 U.S.C. 1728) the following new subsection: "(d)(1) Notwithstanding any limitation in this subchapter SEC. 101. (a) The Federal Deposit Insurance Act is or in any other provision of law relating to the amount of amended— deposit insurance available for any one account, in the case (1) in subsection (m) of section 3 (12 U.S.C. 1813(m)), by of an insured member who is— inserting immediately after "depositor" in the first sentence "(i) an officer, employee, or agent of the United States the following: "(other than a depositor referred to in the third having official custody of public funds and lawfully investing sentence of this subsection)"; the same in an insured institution; (2) in subsection (i) of section 7 (12 U.S.C. 1817(i)), by "(ii) an officer, employee, or agent of any State of the striking out "Trust" and inserting in lieu thereof the following: United States, or of any county, municipality, or political "Except with respect to trust funds which are owned by a subdivision thereof having official custody of public funds and depositor referred to in paragraph (2) of section 11 (a) of this lawfully investing the same in an insured institution in such Act, trust"; and State; (3) in subsection (a) of section 11 (12 U.S.C. 1821(a)), - "(iii) an officer, employee, or agent of the District of by inserting "(1)" immediately after "(a)", by striking out Columbia having official custody of public funds and lawfully "The" in the last sentence and inserting in lieu thereof the investing the same in an insured institution in the District of following: "Except as provided in paragraph (2), the", and Columbia; or by inserting at the end of such subsection the following: "(iv) an officer, employee, or agent of the Commonwealth "(2)(A) Notwithstanding any limitation in this Act or in of Puerto Rico, or of the Virgin Islands, or of any county, any other provision of law relating to the amount of deposit municipality, or political subdivision thereof having official insurance available for the account of any one depositor, in custody of public funds and lawfully investing the same in the case of a depositor who is— an insured institution in the Commonwealth of Puerto Rico "(i) an officer, employee, or agent of the United States or the Virgin Islands, respectively; having official custody of public funds and lawfully investing the account of such insured member shall be insured in an or depositing the same in time and savings deposits in an amount not to exceed $100,000 per account. insured bank; "(2) The Corporation may limit the aggregate amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 FEDERAL RESERVE BULLETIN • DECEMBER 1974 funds that may be invested in any insured institution by any place it appears therein and inserting in lieu thereof "$40,insured member referred to in paragraph (1) of this subsection 000": on the basis of the size of any such institution in terms of (1) The first sentence of section 3(m) (12 U.S.C. its assets." 1813(m)). (2) The first sentence of section 7(i) (12 U.S.C. 1817(i)). (c) Subsection (c) of section 207 of the Federal Credit Union (3) The last sentence of section 11(a) (12 U.S.C. 1821(a)). Act (12 U.S.C. 1787) is amended by— (4) The fifth sentence of section 1 l(i) (12 U.S.C. 182l(i)). (1) inserting "(1)" after "(c)", (b) The amendments made by this section are not applicable (2) striking out "For the purposes of this subsection," to any claim arising out of the closing of a bank prior to the and inserting in lieu thereof the following: "Subject to the effective date of this section. provisions of paragraph (2), for the purposes of this subsec- (c) The amendments made by this section shall take effect tion,", and on the thirtieth day beginning after the date of enactment of (3) adding at the end thereof the following: this Act. "(2)(A) Notwithstanding any limitation in this Act or in any other provision of law relating to the amount of insurance INCREASED CEILING ON DEPOSIT INSURANCE: available for the account of any one depositor or member, FEDERAL SAVINGS AND LOAN INSURANCE in the case of a depositor or member who is— CORPORATION "(i) an officer, employee, or agent of the United States having official custody of public funds and lawfully investing SEC. 103. (a) The following provisions of title IV of the the same in a credit union insured in accordance with this National Housing Act are amended by striking out "$20,000" title; each place it appears therein and inserting in lieu thereof "(ii) an officer, employee, or agent of any State of the United "$40,000": States, or of any county, municipality, or political subdivision (1) Section 401(b) (12 U.S.C. 1724(b)). thereof having official custody of public funds and lawfully (2) Section 405(a) (12 U.S.C. 1728(a)). investing the same in a credit union insured in accordance with (b) The amendments made by this section are not applicable this title in such State; to any claim arising out of a default, as defined in section "(iii) an officer, employee, or agent of the District of 401(d) of the National Housing Act, where the appointment Columbia having official custody of public funds and lawfully of a conservator, receiver, or other legal custodian as set forth investing the same in a credit union insured in accordance with in that section becomes effective prior to the effective date this title in the District of Columbia; or of this section. "(iv) an officer, employee, or agent of the Commonwealth (c) The amendments made by this section shall take effect of Puerto Rico, of the Panama Canal Zone, or of any territory on the thirtieth day beginning after the date of enactment of or possession of the United States, or of any county, munici- this Act. pality, or political subdivision thereof having official custody of public funds and lawfully investing the same in a credit INCREASED CEILING ON DEPOSIT INSURANCE: union insured in accordance with this title in the Common- INSURED CREDIT UNIONS wealth of Puerto Rico, the Panama Canal Zone, or any such territory or possession, respectively; SEC. 104. (a) The first sentence of section 207(c) of title his account shall be insured in an amount not to exceed II of the Federal Credit Union Act (12 U.S.C. 1787 (c)) is $100,000 per account. amended by striking out "$20,000" and inserting in lieu "(B) The Administrator may limit the aggregate amount of thereof "$40,000". funds that may be invested or deposited in any credit union (b) The amendment made by this section is not applicable insured in accordance with this title by any depositor or to any claim arising out of the closing of a credit union for member referred to in subparagraph (A) on the basis of the liquidation on account of bankruptcy or insolvency pursuant size of any such credit union in terms of its assets." to section 207 of title II of the Federal Credit Union Act (12 (d) Section 107(7) of the Federal Credit Union Act (12 U.S.C. 1787) prior to the effective date of this section. U.S.C. 1757(7) is amended by adding at the end thereof the (c) The amendment made by this section shall take effect following: "and to receive from an officer, employee, or agent on the thirtieth day beginning after the date of enactment of of those nonmember units of Federal, State, or local govern- this Act. ments and political subdivisions thereof enumerated in section 207 of this Act (12 U.S.C. 1787) and in the manner so CONVERSION OF SAVINGS AND LOAN ASSOCIATIONS prescribed payments on shares, share certificates, and share deposits;". SEC. 105. (a) Section 403(b) of the National Housing Act, (e) Section 5(b)(2) of the Home Owners' Loan Act of 1933 as amended (12 U.S.C. 1726(b)), is amended by adding at is amended by inserting immediately after "security," "may the end thereof the following new sentence: "As used in this be surety as defined by the Board". subsection the term 'reserves' shall, to such extent as the (f)(1) The Advisory Commission on Intergovernmental Re- Corporation may provide, include capital stock and other items, lations (hereinafter referred to as the "Commission") shall as defined by the Corporation.". conduct a study of the impact of this section on funds available (b) Section 12(i) of the Securities Exchange Act of 1934, for housing and on State and local bond markets. as amended (15 U.S.C. 78l(i)>, is amended to read as follows: (2) The Commission shall make a report to the Congress "(i) In respect of any securities issued by banks the deposits of the results of its study not later than two years after the of which are insured in accordance with the Federal Deposit date of enactment of this Act. Insurance Act or institutions the accounts of which are insured (3) There is authorized to be appropriated to the Commission by the Federal Savings and Loan Insurance Corporation, the such sums as may be necessary to carry out this subsection. powers, functions, and duties vested in the Commission to (g) This section and the amendments made by it shall take administer and enforce sections 12, 13, 14(a), 14(c), 14(d), effect on the thirtieth day beginning after the date of enactment 14(f), and 16, (1) with respect to national banks and banks of this Act. operating under the Code of Law for the District of Columbia are vested in the Comptroller of the Currency, (2) with respect INCREASED CEILING ON DEPOSIT INSURANCE: FED- to all other member banks of the Federal Reserve System are ERAL DEPOSIT INSURANCE CORPORATION vested in the Board of Governors of the Federal Reserve System, (3) with respect to all other insured banks are vested SEC. 102 (a) The following provisions of the Federal Deposit in the Federal Deposit Insurance Corporation, and (4) with Insurance Act are amended by striking out "$20,000" each respect to institutions the accounts of which are insured by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 851 the Federal Savings and Loan Insurance Corporation are vested action of the Federal Home Loan Bank Board or the Corporain the Federal Home Loan Bank Board. The Comptroller of tion which approves, with or without conditions, or disapthe Currency, the Board of Governors of the Federal Reserve proves a plan of conversion pursuant to this subsection only System, the Federal Deposit Insurance Corporation, and the by complying with the provisions of subsection (k) of section Federal Home Loan Bank Board shall have the power to make 408 of this title (12 U.S.C. 1730a(k) within the time limit such rules and regulations as may be necessary for the execu- and in the manner therein prescribed, which provisions shall tion of the functions vested in them as provided in this apply in all respects as if such final action were an order the subsection. In carrying out their responsibilities under this review of which is therein provided for, except that such time subsection, the agencies named in the first sentence of this limit shall commence upon publication of notice of such final subsection shall issue substantially similar regulations to regu- action in the Federal Register or upon the giving of such general lations and rules issued by the Commission under sections 12, notice of such final action as is required by or approved under 13, 14(a), 14(c), 14(d), 14(f) and 16, unless they find that regulations of the Corporation, whichever is later. implementation of substantially similar regulations with respect "(5) The Corporation shall, at least annually and more often to insured banks and insured institutions are not necessary or as circumstances require, render reports to the Congress on appropriate in the public interest or for protection of investors, the exercise of its authority under this subsection. and publish such findings, and the detailed reasons therefor, "(6) In implementing the provisions of this subsection the in the Federal Register. Such regulations of the above-named Corporation shall regulate the approvals granted so as to agencies, or the reasons for failure to publish such substantially achieve (A) as much geographical dispersion as practicable; similar regulations to those of the Commission, shall be pub- (B) an equitable distribution with respect to the size of conlished in the Federal Register within 120 days of the date of verting institutions; (C) an appropriate distribution between enactment of this subsection, and, thereafter, within 60 days State chartered and Federally chartered institutions; (D) timeliof any changes made by the Commission in its relevant ness of filing; (E) flexibility to the extent possible in plans regulations and rules." of conversion taking into account the characteristics of partic- (c) Paragraph (5) of subsection (1) of section 407 of the ular converting institutions; (F) the meeting of capital needs; National Housing Act, as amended (12 U.S.C. 1730(1)(5)), and (G) such other reasonable results as it may consider is amended by inserting after "disclosures" a comma and the necessary or appropriate in the public interest." following: "including proxy statements and the solicitation of proxies thereby,". (d) Subsection (j) of section 402 of the National Housing MORATORIUM ON CONVERSION OF FEDERAL Act, as amended (12 U.S.C. 1725(j)), is amended to read as DEPOSIT INSURANCE CORPORATION INSURED follows: INSTITUTIONS "(j)(l) Except as otherwise provided in this subsection, until June 30, 1976, the Corporation shall not approve, under SEC. 106. Section 18(c) of the Federal Deposit Insurance regulations adopted pursuant to this title or section 5 of the Act (12 U.S.C. 1828(c)) is amended by adding at the end Home Owner's Loan Act of 1933, by order or otherwise, a thereof the following new subsection: conversion from the mutual to stock form of organization "(10) Until June 30, 1976, the responsible agency shall not involving or to involve an insured institution, except that this grant any approval required by law which has the practical sentence shall not be deemed to limit now or hereafter the effect of permitting a conversion from the mutual to the stock authority of the Corporation to approve conversions in super- form of organization, including approval of any application visory cases. The Corporation may by rule, regulation, or pending on the date of enactment of this subsection, except otherwise and under such civil penalties (which may be cumu- that this sentence shall not be deemed to limit now or hereafter lative to any other remedies) as it may prescribe take whatever the authority of the responsible agency to grant approvals in action it deems necessary or appropriate to implement or cases where the responsible agency finds that it must act in enforce this subsection. order to maintain the safety, soundness, and stability of an (2) The number of applications for conversion which the insured bank. The responsible agency may by rule, regulation, Corporation may approve pursuant to such regulations prior or otherwise and under such civil penalties (which shall be to such date shall be determined by the Corporation but shall cumulative to any other remedies) as it may prescribe take not in any case be in excess of 1 per centum of the total number whatever action it deems necessary or appropriate to implement of all insured institutions in existence on the date of enactment, or enforce this subsection." exclusive of the number of applications submitted for filing prior to May 22, 1973. Provided, that the Corporation shall EXTENSION OF FLEXIBLE REGULATION OF INTEREST process to final determination any application submitted for RATES AUTHORITY filing prior to May 22, 1973, pursuant to regulations in effect SEC. 107. Section 7 of the Act of September 21, 1966 and adopted pursuant to this title or section 5 of the Home (Public Law 89-597), is amended by striking out "December Owner's Loan Act of 1933: with further proviso that, with 31, 1974" and inserting in lieu thereof "December 31, 1975". respect to a plan of conversion of any such applicant which, before May 22, 1973, has given written public notice to its INCREASE DOLLARS LIMITATION ON THE COST FOR accountholders of adoption of a plan of conversion or has CONSTRUCTION OF FEDERAL RESERVE BANK obtained waiver forms from substantially all its new account- BRANCH BUILDINGS holders subsequent to the giving of such notice, such plan need not require payment for stock distributed to accountholders as SEC. 108. The ninth paragraph of section 10 of the Federal of a record date prior to the date of such notice. Reserve Act, as amended (12 U.S.C. 522), is amended by "(3) Notwithstanding any other provision of law, an insured striking out "$60,000,000" and inserting in lieu thereof institution converting in accordance with this subsection may "$140,000,000". retain its Federal charter. The Corporation shall not, however, permit the conversion of Federally chartered associations in PURCHASE OF UNITED STATES OBLIGATIONS BY States the laws of which do not authorize the operation of FEDERAL RESERVE BANKS State chartered stock associations, except that the prohibition contained in this sentence shall not apply to the District of SEC. 109. (a) Section 14(b) of the Federal Reserve Act, Columbia, the Commonwealth of Puerto Rico, or a State where as amended (12 U.S.C. 355), is amended by striking out all insured institutions domiciled therein are Federally char- "November 1, 1973" and inserting in lieu thereof "November tered. 1, 1975" and by striking out "October 31,1973" and inserting "(4) Any aggrieved person may obtain review of a final in lieu thereof "October 31, 1975". Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 FEDERAL RESERVE BULLETIN • DECEMBER 1974 SUPERVISORY AUTHORITY OF THE BOARD OF the total amount of such deposits in all banks, building and GOVERNORS OF THE FEDERAL RESERVE SYSTEM loan, savings and loan, and homestead associations (including OVER BANK HOLDING COMPANIES AND THEIR cooperative banks) in that State" immediately after "agency NONBANKING SUBSIDIARIES of the United States". SEC. 110. Subsection (b) of section 8 of the Federal Deposit TECHNICAL AMENDMENT Insurance Act, as amended (12 U.S.C. 1818(b)), is amended SEC. 114. (a) Section 7(d)(2) of the Act of August 16, 1973 by adding at the end thereof the following new paragraph: (Public Law 93-100), is amended by striking out "the Com- "(3) This subsection and subsections (c), (d), (h), (i), (k), monwealth of Puerto Rico,". (1), (m), and (n) of this section shall apply to any bank holding (b) The amendment made by subsection (a) applies with company, and to any subsidiary (other than a bank) of a holding respect to any taxable year or other taxable period beginning company, as those terms are defined in the Bank Holding on or after August 16, 1973. Company Act of 1956, in the same manner as they apply to a State member insured bank." FEDERAL SAVINGS AND LOAN INSURANCE COR- PORATION SECONDARY RESERVE ADJUSTMENT INDEPENDENCE OF FINANCIAL REGULATORY AGENCIES SEC. 115. Paragraph (1) of subsection (d) of section 404 of the National Housing Act, as amended (12 U.S.C. 1727), SEC. 111. No officer or agency of the United States shall is amended by inserting "(A)" immediately after "(d)(1)" have any authority to require the Securities and Exchange and by adding at the end thereof the following: Commission, the Board of Governors of the Federal Reserve "(B) (i) As used in this subparagraph (B), 'minimum net System, the Federal Deposit Insurance Corporation, the Federal reduction year' means a year in which, at the close of De- Home Loan Bank Board, or the National Credit Union Ad- cember 31, the aggregate of the primary reserve and secondary ministration to submit legislative recommendations, or testi- reserve equals or exceeds 1 per centum of the total amount mony, or comments on legislation, to any officer or agency of all accounts of insured members of all insured institutions, of the United States for approval, comments, or review, prior and 'beginning balance' means, with respect to each insured to the submission of such recommendations, testimony, or institution, the amount of such institution's pro rata share, if comments to the Congress if such recommendations, testi- any, of the secondary reserve as of the close of December mony, or comments to the Congress include a statement 31, 1973, plus any amount or amounts which, after such close, indicating that the views expressed therein are those of the shall have been transferred to such institution under the last agency submitting them and do not necessarily represent the sentence of subsection (e) of this section. views of the President. "(ii) In May of each year succeeding each of the first ten minimum net reduction years occurring after December 31, INCREASE IN AUTHORITY OF THE TREASURY 1973, the Corporation shall reduce the amount of each insured TO PURCHASE FEDERAL HOME LOAN BANK institution's pro rata share, if any, of the secondary reserve OBLIGATIONS as of the preceding December 31 by making to the extent available, a cash refund to each such institution of the dif- SEC. 112. Subsection (i) of section 11 of the Federal Home ference, if any, between such pro rata share and the applicable Loan Bank Act, as amended (12 U.S.C. 1431 (i», is amended percentage of its beginning balance prescribed in the following as follows: table: (1) In the fourth sentence of the first paragraph, strike out "subsection" both places it appears and insert in lieu Per cent of beginthereof "paragraph". "Minimum net reduction year: ning balance (2) Strike out the second paragraph and insert in lieu 1 98.1818182 thereof the following: 2 94.5454546 "In addition to obligations authorized to be purchased by 3 89.0909091 the preceding paragraph, the Secretary of the Treasury is 4 81.8181818 authorized to purchase any obligations issued pursuant to this 5 72.7272727 section in amounts not to exceed $2,000,000,000. The author- 6 61.8181818 ity provided in this paragraph shall expire August 10, 1975. 7 49.0909091 "Notwithstanding the foregoing, the authority provided in 8 34.5454546 this subsection may be exercised during any calendar quarter 9 18.1818182 beginning after the date of enactment of the Depository Insti- 10 0.0000000". tutions Amendments of 1974 only if the Secretary of the Treasury and the Chairman of the Federal Home Loan Bank CREDIT UNION MANAGEMENT: REASONABLE Board certify to the Congress that (1) alternative means cannot HEALTH AND ACCIDENT INSURANCE NOT be effectively employed to permit members of the Home Loan CONSIDERED COMPENSATION Bank System to continue to supply reasonable amounts of funds SEC. 116. Section 111 of the Federal Credit Union Act (12 to the mortgage market, and (2) the ability to supply such U.S.C. 1761) is amended by striking the period at the end funds is substantially impaired because of monetary stringency and a high level of interest rates. Any funds borrowed under thereof and adding ": Provided, however, That reasonable this subsection shall be repaid by the Home Loan Banks at health, accident, and similar insurance protection shall not be the earliest practicable date.". considered compensation under regulations promulgated by the Administrator.". AUTHORITY OF THE FEDERAL HOME LOAN MORT- TITLE II—NATIONAL COMMISSION ON GAGE CORPORATION TO PURCHASE MORTGAGES FROM STATE INSURED INSTITUTIONS ELECTRONIC FUND TRANSFERS SEC. 113. The first sentence of section 305(a)(1) of the Federal Home Loan Mortgage Corporation Act is amended by ESTABLISHMENT inserting "or from any financial institution the deposits or SEC. 201. There is established the National Commission on accounts of which are insured under the laws of any State Electronic Fund Transfers (hereinafter referred to as the if the total amount of time and savings deposits held in all "Commission") which shall be an independent instrumentality such institutions in that State is more than 20 per centum of of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 853 MEMBERSHIP tionally and into other forms of electronic communications; (9) the need to protect the legal rights of users and SEC. 202. (a) The Commission shall be composed of consumers. twenty-six members as follows: (b) The Commission shall make an interim report within (1) the Chairman of the Board of Governors of the Federal one year of its findings and recommendations and at such other Reserve System or his delegate; times as it deems advisable and shall transmit to the President (2) the Attorney General or his delegate; and to the Congress not later than two years after the date (3) the Comptroller of the Currency or his delegate; of enactment of this Act a final report of its findings and (4) the Chairman of the Federal Home Loan Bank Board recommendations. Any such report shall include all hearing or his delegate; transcripts, staff studies, and other material used in preparation (5) the Administrator of the National Credit Union Adof the report. The interim and final reports shall be made ministration or his delegate; available to the public upon transmittal. Sixty days after (6) the Chairman of the Board of Directors of the Federal transmission of its final report the Commission shall cease to Deposit Insurance Corporation or his delegate; exist. (7) the Chairman of the Federal Communications Com- (c) The Commission shall not be required to obtain the mission or his delegate; clearance of any Federal agency prior to the transmittal of any (8) the Postmaster General or his delegate; interim or final report. (9) the Secretary of the Treasury or his delegate; (10) the Chairman of the Federal Trade Commission or POWERS OF COMMISSION his delegate; (11) two individuals, appointed by the President, one of SEC. 204. (a) The Commission may for the purpose of whom is an official of a State agency which regulates banking, carrying out this Act hold such hearings, sit and act at such or similar financial institutions, and one of whom is an official times and places, take such testimony, and receive such eviof a State agency which regulates thrift or similar financial dence, as the Commission may deem advisable. The Commisinstitutions; sion may administer oaths of affirmations to witnesses appear- (12) seven individuals, appointed by the President, who ing before it. are officers or employees of, or who otherwise represent (b) When so authorized by the Commission, any member banking, thrift, or other business entities, including one repre- or agent of the Commission may take any action which the sentative each of commercial banks, mutual savings banks, Commission is authorized to take by this section. savings and loan associations, credit unions, retailers, non- (c) The Commission may secure directly from any departbanking institutions offering credit card services, and organi- ment or agency of the United States information necessary to zations providing interchange services for credit cards issued enable it to carry out this Act. Upon request of the Chairperson by banks; of the Commission, the head of such department or agency (13) five individuals, appointed by the President, from shall furnish such information to the Commission. private life who are not affiliated with, do not represent and (d) (1) The Commission shall have power to issue subpenas have no substantial interest in any banking, thrift, or other requiring the attendance and testimony of witnesses and the financial institution, including but not limited to credit unions, production of any evidence that relates to any matter under retailers, and insurance companies; investigation by the Commission. Such attendance of witnesses (14) the Comptroller General of the United States or his and the production of such evidence may be required from delegate; and any place within the United States at any designated place (15) the Director of the Office of Technology Assessment. of hearing within the United States. (b) The Chairperson shall be designated by the President (2) If a person issued a subpena under paragraph (1) refuses at the time of his appointment from among the members of to obey such subpena or is guilty of contumacy, any court the Commission and such selection shall be by and with the of the United States within the judicial district within which advice and consent of the Senate unless the appointee holds the hearing is conducted or within the judicial district within an office to which he was appointed by and with the advice which such person is found or resides or transacts business and consent of the Senate. may (upon application by the Commission) order such person (c) A vacancy in the Commission shall be filled in the manner to appear before the Commission to produce evidence or to in which the original appointment was made. give testimony touching the matter under investigation. Any FUNCTIONS failure to obey such order of the court may be punished by such court as a contempt thereof. SEC. 203. (a) The Commission shall conduct a thorough (3) The subpenas of the Commission shall be served in the study and investigation and recommend appropriate adminis- manner provided for subpenas issued by a United States district trative action and legislation necessary in connection with the court under the Federal Rules of Civil Procedure for the United possible development of public or private electronic fund States district courts. transfer systems, taking into account, among other things— (4) All process of any court to which application may be (1) the need to preserve competition among the financial made under this section may be served in the judicial district institutions and other business enterprises using such a system; wherein the person required to be served resides or may be (2) the need to promote competition among financial found. institutions and to assure Government regulation and involvement or participation in a system competitive with the private ADMINISTRATION sector be kept to a minimum; (3) the need to prevent unfair or discriminatory practices SEC. 205-(a) The Commission— by any financial institution or business enterprise using or (1) may appoint with the advice and consent of the Senate desiring to use such a system; and fix the compensation of an Executive Director, and such (4) the need to afford maximum user and consumer additional staff personnel as he deems necessary, without convenience; regard to the provisions of title 5, United States Code, govern- (5) the need to afford maximum user and consumer rights ing appointments in the competitive service, and without regard to privacy and confidentiality; to chapter 51 and subchapter III of chapter 53 of such title (6) the impact of such a system on economic and monetary relating to classification and General Schedule pay rates, but policy; at rates not in excess of the maximum rate for GS—18 of (7) the implications of such a system on the availability the General Schedule under section 5332 of such title; and of credit; (2) may procure temporary and intermittent services to (8) the implications of such a system expanding interna- the same extent as is authorized by section 3109 of title 5, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 FEDERAL RESERVE BULLETIN • DECEMBER 1974 United States Code, but at rates not to exceed $150 a day § 304. Disclosure of fair credit billing rights for individuals. (a) Section 127(a) of the Truth in Lending Act (15 U.S.C. (b) The Comptroller General is authorized to make detailed 1637 (a)) is amended by adding at the end thereof a new audits of the books and records of the Commission, and shall paragraph as follows: report the results of any such audit to the Commission and "(8) A statement, in a form prescribed by regulations of to the Congress. the Board of the protection provided by sections 161 and 170 to an obligor and the creditor's responsibilities under COMPENSATION sections 162 and 170. With respect to each of two billing cycles per year, at semiannual intervals, the creditor shall transmit SEC. 206. (a) A member of the Commission who is an officer such statement to each obligor to whom the creditor is required or employee of the United States shall serve as a member of to transmit a statement pursuant to section 127(b) for such the Commission without additional compensation, but shall be billing cycle." entitled to reimbursement for travel, subsistence, and other (b) Section 127(c) of such Act (15 U.S.C. 1637(c)) is necessary expenses incurred in the performance of his duties amended to read; as a member of the Commission. "(c) In the case of any existing account under an open end (b) A member of the Commission who is not otherwise an consumer credit plan having an outstanding balance of more officer of employee of the United States shall be compensated than $1 at or after the close of the creditor's first full billing at a rate of $150 per day when engaged in the performance cycle under the plan after the effective date of subsection (a) of his duties as a member of the Commission, and shall also or any amendments thereto, the items described in subsection be reimbursed for travel, subsistence, and other necessary (a), to the extent applicable and not previously disclosed, shall expenses incurred in the performance of his duties as a member be disclosed in a notice mailed or delivered to the obligor of the Commission. not later than the time of mailing the next statement required by subsection (b)." ASSISTANCE OF GOVERNMENT AGENCIES § 305. Disclosure of billing contact Section 127(b) of the Truth in Lending Act (15 U.S.C. SEC. 207. (a) Each department, agency, and instrumentality 1637(b)) is amended by adding at the end thereof a new of the executive branch of the Government, including inde- paragraph as follows: pendent agencies, is authorized and directed to furnish to the "(11) The address to be used by the creditor for the Commission, upon request, such data, reports, and other in- purpose of receiving billing inquiries from the obligor." formation as the Commission deems necessary to carry out its functions under this title. § 306. Billing practices (b) The head of any department, agency, or instrumentality The Truth in Lending Act (15 U.S.C. 1601-1665) is of the United States may detail such personnel and may furnish amended by adding at the end thereof a new chapter as follows: such services, with or without reimbursement, as the Commission may request to assist in carrying out its functions. "Chapter 4—CREDIT BILLING "Sec. AUTHORIZATION OF APPROPRIATIONS "161. Correction of billing errors. "162. Regulation of credit reports. SEC. 208. There are authorized to be appropriated without "163. Length of billing period. fiscal year limitations such sums, not to exceed $2,000,000, "164. Prompt crediting of payments. as may be necessary to carry out the provisions of this title. "165. Crediting excess payments. "166. Prompt notification of returns. TITLE III—FAIR CREDIT BILLING "167. Use of cash discounts. "168. Prohibition of tie-in services. "169. Prohibition of offsets. § 301. Short title "170. Rights of credit card customers. This title may be cited as the "Fair Credit Billing Act". "171. Relation to State laws. § 302. Declaration of purpose The last sentence of section 102 of the Truth in Lending Act (15 U.S.C. 1601) is amended by striking out the period and inserting in lieu thereof a comma and the following: "and "§ 161. Correction of billing errors to protect the consumer against inaccurate and unfair credit "(a) If a creditor, within sixty days after having transmitted billing and credit card practices." to an obligor a statement of the obligor's account in connection with an extension of consumer credit, receives at the address § 303. Definitions of creditor and open end credit plan disclosed under section 127(b)(ll) a written notice (other than The first sentence of section 103(f) of the Truth in Lending notice on a payment stub or other payment medium supplied Act (15 U.S.C. 1602(f)) is amended to read as follows: "The by the creditor if the creditor so stipulates with the disclosure term 'creditor' refers only to creditors who regularly extend, required under section 127(a)(8)) from the obligor in which or arrange for the extension of, credit which is payable by the obligor— agreement in more than four installments or for which the "(1) sets forth or otherwise enables the creditor to identify payment of a finance charge is or may be required, whether the name and account number (if any) of the obligor, in connection with loans, sales of property or services, or "(2) indicates the obligor's belief that the statement conotherwise. For the purposes of the requirements imposed under tains a billing error and the amount of such billing error, and Chapter 4 and sections 127(a)(6), 127(a)(7), 127(a)(8), "(3) sets forth the reasons for the obligor's belief (to the 127(b)(1), 127(b)(2), 127(b)(3), 127(b)(9), and 127(b)(ll) of extent applicable) that the statement contains a billing error, Chapter 2 of this Title, the term 'creditor' shall also include the creditor shall, unless the obligor has, after giving such card issuers whether or not the amount due is payable by written notice and before the expiration of the time limits herein agreement in more than four installments or the payment of specified, agreed that the statement was correct— a finance charge is or may be required, and the Board shall, "(A) not later than thirty days after the receipt of the by regulation, apply these requirements to such card issuers, notice, send a written acknowledgement thereof to the obligor, to the extent appropriate, even though the requirements are unless the action required in subparagraph (B) is taken within by their terms applicable only to creditors offering open end such thirty-day period, and credit plans." "(B) not later than two complete billing cycles of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 855 creditor (in no event later than ninety days) after the receipt of this section or section 162 forfeits any right to collect from of the notice and prior to taking any action to collect the the obligor the amount indicated by the obligor under paragraph amount, or any part thereof, indicated by the obligor under (2) of subsection (a) of this section, and any finance charges paragraph (2) either— thereon, except that the amount required to be forfeited under "(i) make appropriate corrections in the account of the this subsection may not exceed $50. obligor, including the crediting of any finance charges on "§ 162. Regulation of credit reports amounts erroneously billed, and transmit to the obligor a "(a) After receiving a notice from an obligor as provided notification of such corrections and the creditor's explanation in section 161 (a), a creditor or his agent may not directly of any change in the amount indicated by the obligor under or indirectly threaten to report to any person adversely on the paragraph (2) and, if any such change is made and the obligor obligor's credit rating or credit standing because of the obliso requests, copies of documentary evidence of the obligor's gor's failure to pay the amount indicated by the obligor under indebtedness; or section 161 (a) (2), and such amount may not be reported "(ii) send a written explanation or clarification to the as delinquent to any third party until the creditor has met the obligor, after having conducted an investigation, setting forth requirements of section 161 and has allowed the obligor the to the extent applicable the reasons why the creditor believes same number of days (not less than ten) thereafter to make the account of the obligor was correctly shown in the statement payment as is provided under the credit agreement with the and, upon request of the obligor, provide copies of documenobligor for the payment of undisputed amounts. tary evidence of the obligor's indebtedness. In the case of a "(b) If a creditor receives a further written notice from an billing error where the obligor alleges that the creditor's billing obligor that an amount is still in dispute within the time allowed statement reflects goods not delivered to the obligor or his for payment under subsection (a) of this section, a creditor designee in accordance with the agreement made at the time may not report to any third party that the amount of the obligor of the transaction, a creditor may not construe such amount is delinquent because the obligor has failed to pay an amount to be correctly shown unless he determines that such goods which he has indicated under section 161(a) (2), unless the were actually delivered, mailed, or otherwise sent to the obligor creditor also reports that the amount is in dispute and, at the and provides the obligor with a statement of such determisame time, notifies the obligor of the name and address of nation. each party to whom the creditor is reporting information After complying with the provisions of this subsection with concerning the delinquency. respect to an alleged billing error, a creditor has no further "(c) A creditor shall report any subsequent resolution of responsibility under this section if the obligor continues to any delinquencies reported pursuant to subsection (b) to the make substantially the same allegation with respect to such parties to whom such delinquencies were initially reported. error. "(b) For the purpose of this section, a 'billing error' consists "§ 163. Length of billing period of any of the following: "(a) If an open end consumer credit plan provides a time "(1) A reflection on a statement of an extension of credit period within which an obligor may repay any portion of the which was not made to the obligor or, if made, was not in credit extended without incurring an additional finance charge, the amount reflected on such statement. such additional finance charge may not be imposed with respect "(2) A reflection on a statement of an extension of credit to such portion of the credit extended for the billing cycle for which the obligor requests additional clarification including of which such period is a part unless a statement which includes documentary evidence thereof. the amount upon which the finance charge for that period is "(3) A reflection on a statement of goods or services not based was mailed at least fourteen days prior to the date accepted by the obligor or his designee or not delivered to specified in the statement by which payment must be made the obligor or his designee in accordance with the agreement in order to avoid imposition of that finance charge. made at the time of a transaction. "(b) Subsection (a) does not apply in any case where a "(4) The creditor's failure to reflect properly on a state- creditor has been prevented, delayed, or hindered in making ment a payment made by the obligor or a credit issued to timely mailing or delivery of such periodic statement within the obligor. the time period specified in such subsection because of an act "(5) A computation error or similar error of an accounting of God, war, natural disaster, strike, or other excusable or nature of the creditor on a statement. justifiable cause, as determined under regulations of the Board. "(6) Any other error described in regulations of the Board. "(c) For the purposes of this section, 'action to collect "§ 164. Prompt crediting of payments the amount, or any part thereof, indicated by an obligor under "Payments received from an obligor under an open end paragraph (2)' does not include the sending of statements of consumer credit plan by the creditor shall be posted promptly account to the obligor following written notice from the obligor to the obligor's account as specified in regulations of the Board. as specified under subsection (a), if— Such regulations shall prevent a finance charge from being "(1) the obligor's account is not restricted or closed imposed on any obligor if the creditor has received the obligor's because of the failure of the obligor to pay the amount indicated payment in readily identifiable form in the amount, manner, under paragraph (2) of subsection (a), and location, and time indicated by the creditor to avoid the "(2) the creditor indicates the payment of such amount imposition thereof. is not required pending the creditor's compliance with this section. "§ 165. Crediting excess payments Nothing in this section shall be construed to prohibit any action "Whenever an obligor transmits funds to a creditor in excess by a creditor to collect any amount which has not been of the total balance due on an open end consumer credit indicated by the obligor to contain a billing error. account, the creditor shall promptly (1) upon request of the "(d) Pursuant to regulations of the Board, a creditor operat- obligor refund the amount of the overpayment, or (2) credit ing an open end consumer credit plan may not, prior to the such amount to the obligor's account. sending of the written explanation or clarification required under paragraph (B) (ii), restrict or close an account with "§ 166. Prompt notification of returns respect to which the obligor has indicated pursuant to subsec- "With respect to any sales transaction where a credit card tion (a) that he believes such account to contain a billing error has been used to obtain credit, where the seller is a person solely because of the obligor's failure to pay the amount other than the card issuer, and where the seller accepts or indicated to be in error. Nothing in this subsection shall be allows a return of the goods or forgiveness of a debit for deemed to prohibit a creditor from applying against the credit services which were the subject of such sale, the seller shall limit on the obligor's account the amount indicated to be in promptly transmit to the credit card issuer, a credit statement error. with respect thereto and the credit card issuer shall credit the "(e) Any creditor who fails to comply with the requirements account of the obligor for the amount of the transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 FEDERAL RESERVE BULLETIN • DECEMBER 1974 "§ 167. Use of cash discounts in the card issuer's products or services, or (E) has obtained "(a) With respect to credit card which may be used for the order for such transaction through a mail solicitation made extensions of credit in sales transactions in which the seller by or participated in by the card issuer in which the cardholder is a person other than the card issuer, the card issuer may is solicited to enter into such transaction by using the credit not, by contract or otherwise, prohibit any such seller from card issued by the card issuer. offering a discount to a cardholder to induce the cardholder "(b) The amount of claims or defenses asserted by the to pay by cash, check, or similar means rather than use a cardholder may not exceed the amount of credit outstanding credit card. with respect to such transaction at the time the cardholder first "(b) With respect to any sales transaction, any discount not notifies the card issuer or the person honoring the credit card in excess of 5 per centum offered by the seller for the purpose of such claim or defense. For the purpose of determining the of inducing payment by cash, check, or other means not amount of credit outstanding in the preceeding sentence, payinvolving the use of a credit card shall not constitute a finance ments and credits to the cardholder's account are deemed to charge as determined under section 106, if such discount is have been applied, in the order indicated, to the payment of: offered to all prospective buyers and its availability is disclosed (1) late charges in the order of their entry to the account; (2) to all prospective buyers clearly and conspicuously in accor- finance charges in order of their entry to the account; and (3) dance with regulations of the Board. debts to the account other than those set forth above, in the order in which each debit entry to the account was made. "§ 168. Prohibition of tie-in services "Notwithstanding any agreement to the contrary, a card "§ 171. Relation to State laws issuer may not require a seller, as a condition to participating "(a) This chapter does not annul, alter, or affect, or exempt in a credit card plan, to open an account with or procure any any person subject to the provisions of this chapter from other service from the card issuer or its subsidiary or agent. complying with, the laws of any State with respect to credit billing practices, except to the extent that those laws are "§ 169. Prohibition of offsets inconsistent with the provision of this chapter, and then only "(a) A card issuer may not take any action to offset a to the extent of the inconsistency. The Board is authorized cardholder's indebtedness arising in connection with a con- to determine whether such inconsistencies exist. The Board sumer credit transaction under the relevant credit card plan may not determine that any State law is inconsistent with any against funds of the cardholder held on deposit with the card provision of this chapter if the Board determines that such issuer unless— law gives greater protection to the consumer. "(1) such action was previously authorized in writing by "(b) The Board shall by regulation exempt from the rethe cardholder in accordance with a credit plan whereby the quirements of this chapter any class of credit transactions cardholder agrees periodically to pay debts incurred in his within any State if it determines that under the law of that open end credit account by permitting the card issuer peri- State that class of transactions is subject to requirements odically to deduct all or a portion of such debt from the substantially similar to those imposed under this chapter or cardholder's deposit account, and that such law gives greater protection to the consumer, and "(2) such action with respect to any outstanding disputed that there is adequate provision for enforcement." amount not be taken by the card issuer upon request of the cardholder. "§ 307. Conforming amendments In the case of any credit card account in existence on the (a) The table of chapters of the Truth in Lending Act is effective date of this section, the previous written authorization amended by adding immediately under item 3 the following: referred to in clause (1) shall not be required until the date "4. CREDIT BILLING 161" (after such effective date) when such account is renewed, but (b) Section 111 (d) of such Act (15 U.S.C. 1610(d)) is in no case later than one year after such effective date. Such amended by striking out "and 130" and inserting in lieu written authorization shall be deemed to exist if the card issuer thereof a comma and the following: "130, and 166". has previously notified the cardholder that the use of his credit (c) Section 121 (a) of such Act (15 U.S.C. 1631 (a)) is card account will subject any funds which the card issuer holds amended— in deposit accounts of such cardholder to offset against any (1) by striking out "and upon whom a finance charge amounts due and payable on his credit card account which is or may be imposed"; and have not been paid in accordance with the terms of the (2) by inserting "or chapter 4" immediately after "this agreement between the card issuer and the cardholder. chapter". "(b) This section does not alter or affect the right under (d) Section 121 (b) of such Act (15 U.S.C. 1631 (b)) is State law of a card issuer to attach or otherwise levy upon amended by inserting "or chapter 4" immediately after "this funds of a cardholder held on deposit with the card issuer if chapter". that remedy is constitutionally available to creditors generally. (e) Section 122(a) of such Act (15 U.S.C. 1632(a)) is amended by inserting "or chapter 4" immediately after "this "§ 170. Rights of credit card customers chapter". "(a) Subject to the limitation contained in subsection (b), (f) Section 122(b) of such Act (15 U.S.C. 1632(b)) is a card issuer who has issued a credit card to a cardholder amended by inserting "or chapter 4" immediately after "this pursuant to an open end consumer credit plan shall be subject chapter". to all claims (other than tort claims) and defenses arising out of any transaction in which the credit card is used as a method § 308. Effective date of payment or extension of credit if (1) the obligor has made This title takes effect upon the expiration of one year after a good faith attempt to obtain satisfactory resolution of a the date of its enactment. disagreement or problem relative to the transaction from the person honoring the credit card; (2) the amount of the initial TITLE IV—AMENDMENTS TO THE TRUTH IN transaction exceeds $50; and (3) the place where the initial LENDING ACT transaction occurred was in the same State as the mailing § 401. Advertising; more-than-four-installment rule address previously provided by the cardholder or was within (a) Chapter 3 of the Truth in Lending Act (15 U.S.C. 100 miles from such address, except that the limitations set 1661-1665) is amended by adding at the end thereof a new forth in clauses (2) and (3) with respect to an obligor's right section as follows: to assert claims and defenses against a card issuer shall not be applicable to any transaction in which the person honoring "§ 146. More-than-four-installment rule the credit card (A) is the same person as the card issuer, (B) Any advertisement to aid, promote, or assist directly or is controlled by the card issuer, (C) is under direct or indirect indirectly the extension of consumer credit repayable in more common control with the card issuer, (D) is a franchised dealer than four installments shall, unless a finance charge is imposed, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 857 clearly and conspicuously state, in accordance with the regula- § 408. Civil liability tions of the Board: (a) Section 130 (a) of the Truth in Lending Act (15 U.S.C. " 'THE COST OF CREDIT IS INCLUDED IN THE 1640 (a)) is amended to read as follows: PRICE QUOTED FOR THE GOODS AND SERVICES' " "(a) Except as otherwise provided in this section, any (b) The table of sections of such chapter is amended by creditor who fails to comply with any requirement imposed adding at the end thereof a new item as follows: under this chapter or chapter 4 of this title with respect to "146. More-than-four-installment rule." any person is liable to such person in an amount equal to the sum of— § 402. Agricultural credit exemption "(1) any actual damage sustained by such person as a Section 104 of the Truth in Landing Act (15 U.S.C. 1603) result of the failure; is amended by adding at the end thereof a new paragraph as "(2) (A) in the case of an individual action twice the follows: amount of any finance charge in connection with the transac- "(5) Credit transactions primarily for agricultural pur- tion, except that the liability under this subparagraph shall not poses in which the total amount to be financed exceeds $25,- be less than $100 nor greater than $1,000; or 000." "(B) in the case of a class action, such amount as the court may allow, except that as to each member of the class § 403. Administrative enforcement no minimum recovery shall be applicable, and the total recov- (a) Section 108(a) of the Truth in Lending Act (15 U.S.C. ery in such action shall not be more than the lesser of $100,000 1607 (a)) is amended by striking out paragraph (4) and by or 1 per centum of the net worth of the creditor; and redesignating paragraphs (5) and (6) as paragraphs (4) and (5), "(3) in the case of any successful action to enforce the respectively. foregoing liability, the costs of the action, together with a (b) Section 108(a) of such Act (15 U.S.C. 1607(a)) is reasonable attorney's fee as determined by the court. amended by adding at the end thereof a new paragraph as In determining the amount of award in any class action, the follows: court shall consider, among other relevant factors, the amount "(6) the Farm Credit Act to 1971, by the Farm Credit of any actual damages awarded, the frequency and persistence Administration with respect to any Federal land bank, Federal of failures of compliance by the creditor, the resources of the land bank association, Federal intermediate credit bank, or creditor, the number of persons adversely affected, and the production credit association." extent to which the creditor's failure of compliance was intentional." § 404. Liens arising by operation of State law (b) Section 130 (b) of such Act (15 U.S.C. 1640 (b)) is Section 125 of the Truth in Lending Act (15 U.S.C. 1635) amended by inserting after "this section" the first place it is amended— appears the following: "for any failure to comply with any (1) by striking out "is" the first time it appears in the requirement imposed under this chapter,". first sentence of subsection (a) and inserting in lieu thereof (c) Section 130 (c) of such Act (15 U.S.C. 1640(c) ) is ", including any such interest arising by operation of law, amended by striking out "chapter" and inserting in lieu thereof is or will be"; and "title". (2) by inserting after "obligor" the second time it appears (d) Section 130 of such Act (15 U.S.C. 1640) is amended in the first sentence of subsection (b) the following: ", includ- by adding at the end thereof a new subsection as follows: ing any such interest arising by operation of law,". "(h) A person may not take any action to offset any amount for which a creditor is potentially liable to such person under § 405. Time limit for right of rescission subsection (a) (2) against any amount owing to such creditor Section 125 of the Truth in Lending Act (15 U.S.C. 1635) by such person, unless the amount of the creditor's liability is amended by adding at the end thereof a new subsection to such person has been determined by judgment of a court as follows: "(f) An obligor's right of rescission shall expire of competent jurisdiction in an action to which such person three years after the date of consummation of the transaction was a party." or upon the sale of the property, whichever occurs earlier, (e) The amendments made by sections 406,407, and 408 notwithstanding the fact that the disclosures required under this shall apply in determining the liability of any person under section or any other material disclosures required under this chapter 2 or 4 of the Truth in Lending Act, unless prior to chapter have not been delivered to the obligor." the date of enactment of this Act such liability has been determined by final judgment of a court of competent jurisdiction and no further review of such judgment may be had § 406. Good faith compliance by appeal or otherwise. Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is amended by adding at the end thereof a new subsection § 409. Full statement of closing costs as follows: Section 121 of the Truth in Lending Act (15 U.S.C. 1631) "(f) No provision of this section or section 112 imposing is amended by adding at the end thereof a new subsection any liability shall apply to any act done or omitted in good as follows: faith in conformity with any rule, regulation, or interpretation "(c) For the purpose of subsection (a), the information thereof by the Board, not-withstanding that after such act or required under this chapter shall include a full statement of omission has occurred, such rule, regulation, or interpretation closing costs to be incurred by the consumer, which shall be is amended, rescinded, or determined by judicial or other presented, in accordance with the regulations of the Board— authority to be invalid for any reason." "(1) prior to the time when any downpayment is made, or § 407. Liability for multiple disclosures "(2) in the case of a consumer credit transaction involving Section 130 of the Truth in Lending Act (15 U.S.C. 1640) real property, at the time the creditor makes a commitment is amended by adding at the end thereof a new subsection with respect to the transaction. as follows: The Board may provide by regulation that any portion of the "(g) The multiple failure to disclose to any person any information required to be disclosed by this section may be information required under this chapter to be disclosed in given in the form of estimates where the provider of such connection with a single account under an open end consumer information is not in a position to know exact information." credit plan, other single consumer credit sale, consumer loan, or other extension of consumer credit, shall entitle the person § 410. Business use of credit cards to a single recovery under this section but continued failure (a) Chapter 2 of the Truth in Lending Act (15 U.S.C. to disclose after a recovery has been granted shall give rise 1631-1644) is amended by adding the following new section to rights to additional recoveries." at the end thereof: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 FEDERAL RESERVE BULLETIN • DECEMBER 1974 "§ 135. Business credit cards any one-year period has a value aggregating $1,000 or more, "The exemption provided by section 104(1) does not apply (2) has moved in or is part of, or which constitutes interstate to the provisions of sections 132, 133, and 134, except that or foreign commerce, and (3) has been obtained with a couna card issuer and a business or other organization which terfeit, fictitious, altered, forged, lost, stolen, or fraudulently provides credit cards issued by the same card issuer to ten obtained credit card; or or more of its employees may by contract agree as to liability "(e) Whoever knowingly receives, conceals, uses, sells, or of the business or other organization with respect to unauth- transports in interstate or foreign commerce one or more tickets orized use of such credit cards without regard to the provisions for interstate or foreign transportation, which (1) within any of section 133, but in no case may such business or other one-year period have a value aggregating $500 or more, and organization or card issuer impose liability upon any employee (2) have been purchased or obtained with one or more counwith respect to unauthorized use of such a credit card except terfeit, fictitious, altered, forged, lost, stolen, or fraudulently in accordance with and subject to the limitations of section obtained credit cards; or 133." "(f) Whoever in a transaction affecting interstate or foreign (b) The table of sections of such chapter is amended by commerce furnishes money, property, services, or anything adding at the end thereof a new item as follows: else of value, which within any one-year period has a value "135. Business credit cards." aggregating $1,000 or more, through the use of any counterfeit fictitious, altered, forged, lost, stolen, or fraudulently obtained §411. Identification of transaction credit card knowing the same to be counterfeit, fictitious, Section 127 (b) (2) of the Truth in Lending Act (15 U.S.C. altered, forged, lost, stolen, or fraudulently obtained— 1637 (b)(2)) is amended to read as follows: shall be fined not more than $10,000 or imprisoned not more "(2) The amount and date of each extension of credit during than ten years, or both." the period and a brief identification on or accompanying the statement of each extension of credit in a form prescribed by § 415. Grace period for consumers regulations of the Board sufficient to enable the obligor to Section 127 of the Truth in Lending Act (15 U.S.C. 1637) identify the transaction, or relate it to copies of sales vouchers is amended— or similar instruments previously furnished." (1) by amending subsection (a) (1) to read as follows: § 412. Exemption for State lending agencies "(1) The conditions under which a finance charge may Section 125(e) of the Truth in Lending Act (15 U.S.C. be imposed, including the time period (if any) within which 1635(e)) is amended by striking the period at the end thereof any credit extended may be repaid without incurring a finance and adding the following: "or to a consumer credit transaction charge, except that the creditor may, at his election and without in which an agency of a State is the creditor." disclosure, impose no such finance charge if payment is received after the termination of such time period."; and § 413. Liability of assignees (2) by amending subsection (b) (10) to read as follows: (a) Chapter 1 of the Truth in Lending Act (15 U.S.C. "(10) The date by which or the period (if any) within 1601-1613) is amended by adding at the end thereof a new which, payment must be made to avoid additional finance section as follows: charges, except that the creditor may, at his election and without disclosure, impose no such additional finance charge "§ 115. Liability of assignees if payment is received after such date or the termination of "Except as otherwise specifically provided in this title, any such period." civil action for a violation of this title which may be brought against the original creditor in any credit transaction may be § 416. Effective date maintained against any subsequent assignee of the original This title takes effect upon the date of its enactment, except creditor where the violation from which the alleged liability that sections 409 and 411 take effect upon the expiration of arose is apparent on the face of the instrument assigned unless one year after the date of its enactment. the assignment is involuntary." (b) The analysis of such chapter is amended by adding at TITLE V—EQUAL CREDIT OPPORTUNITY the end thereof a new item as follows: "115. Liability of assignees." § 501. Short title This title may be cited as the "Equal Credit Opportunity § 414. Credit card fraud Act" Section 134 of the Truth in Lending Act (15 U.S.C. 1644) is amended to read as follows: § 502. Findings and purpose The Congress finds that there is a need to insure that the "§ 134. Fraudulent use of credit card various financial institutions and other firms engaged in the "(a) Whoever knowingly in a transaction affecting interstate extensions of credit exercise their responsibility to make credit or foreign commerce, uses or attempts or conspires to use any available with fairness, impartiality, and without discrimination counterfeit, fictitious, altered, forged, lost, stolen, or fraudu- on the basis of sex or marital status. Economic stabilization lently obtained credit card to obtain money, goods, services, would be enhanced and competition among the various finanor anything else of value which within any one-year period cial institutions and other firms engaged in the extension of has a value aggregating $1,000 or more; or credit would be strengthened by an absence of discrimination "(b) Whoever, with unlawful or fraudulent intent, transports on the basis of sex or marital status, as well as by the informed or attempts or conspires to transport in interstate or foreign use of credit which Congress has heretofore sought to promote. commerce a counterfeit, fictitious, altered, forged, lost, stolen, It is the purpose of this Act to require that financial institutions or fraudulently obtained credit card knowing the same to be and other firms engaged in the extension of credit make that counterfeit, fictitious, altered, forged, lost, stolen, or fraudu- credit equally available to all creditworthy customers without lently obtained; or regard to sex or marital status. "(c) Whoever, with unlawful or fraudulent intent, uses any instrumentality of interstate or foreign commerce to sell or § 503. Amendment to the Consumer Credit Protection Act transport a counterfeit, fictitious, altered, forged, lost, stolen, The Consumer Credit Protection Act (Public Law 90-321), or fraudulently obtained credit card knowing the same to be is amended by adding at the end thereof a new title VII: counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or "TITLE VII—EQUAL CREDIT OPPORTUNITY "(d) Whoever knowingly receives, conceals, uses, or transport money, goods, services, or anything else of value (except "Sec. tickets for interstate or foreign transportation) which (1) within "701. Prohibited discrimination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 859 "702. Definitions. "(3) The Federal Credit Union Act, by the Administrator "703. Regulations. of the National Credit Union Administration with respect to "704. Administrative enforcement. any Federal Credit Union. "705. Relation to State laws. "(4) The Acts to regulate commerce, by the Interstate "706. Civil liability. Commerce Commission with respect to any common carrier "707 Effective date. subject to those Acts. "(5) The Federal Aviation Act of 1958, by the Civil Aeron- "§ 701. Prohibited discrimination autics Board with respect to any air carrier or foreign air carrier "(a) It shall be unlawful for any creditor to discriminate subject to that Act. against any applicant on the basis of sex or marital status with "(6) The Packers and Stockyards Act, 1921 (except as respect to any aspect of a credit transaction. provided in section 406 of that Act), by the Secretary of "(b) An inquiry of marital status shall not constitute dis- Agriculture with respect to any activities subject to that Act. crimination for purposes of this title if such inquiry is for the "(7) The Farm Credit Act of 1971, by the Farm Credit purpose of ascertaining the creditor's rights and remedies Administration with respect to any Federal land bank, Federal applicable to the particular extension of credit, and not to land bank association, Federal intermediate credit bank, and discriminate in a determination of creditworthiness. production credit association; "(8) The Securities Exchange Act of 1934, by the Se- "§ 702. Definitions curities and Exchange Commission with respect to brokers and "(a) The definitions and rules of construction set forth in dealers; and this section are applicable for the purposes of this title. "(9) The Small Business Investment Act of 1958, by the "(b) The term 'applicant' means any person who applies Small Business Administration, with respect to small business to a creditor directly for an extension, renewal, or continuation investment companies. of credit, or applies to a creditor indirectly by use of an existing "(b) For the purpose of the exercise by any agency referred credit plan for an amount exceeding a previously established to in subsection (a) of its powers under any Act referred to credit limit. in that subsection, a violation of any requirement imposed "(c) The term 'Board' refers to the Board of Governors under this title shall be deemed to be a violation of a requireof the Federal Reserve System. ment imposed under that Act. In addition to its powers under "(d) The term 'credit' means the right granted by a creditor any provision of law specifically referred to in subsection (a), to a debtor to defer payment of debt or to incur debts and each of the agencies referred to in that subsection may exercise defer its payment or to purchase property or services and defer for the purpose of enforcing compliance with any requirement payment therefor. imposed under this title, any other authority conferred on it "(e) The term 'creditor' means any person who regularly by law. The exercise of the authorities of any of the agencies extends, renews, or continues credit; any person who regularly referred to in subsection (a) for the purpose of enforcing arranges for the extension, renewal, or continuation of credit; compliance with any requirement imposed under this title shall or any assignee of an original creditor who participates in the in no way preclude the exercise of such authorities for the decision to extend, renew, or continue credit. purpose of enforcing compliance with any other provision of "(f) The term 'person' means a natural person, a corpora- law not relating to the prohibition of discrimination on the tion, government or governmental subdivision or agency, trust, basis of sex or marital status with respect to any aspect of estate, partnership, cooperative, or association. a credit transaction. "(g) Any reference to any requirement imposed under this "(c) Except to the extent that enforcement of the requiretitle or any provision thereof includes reference to the regula- ments imposed under this title is specifically committed to some tions of the Board under this title or the provision thereof in other Government agency under subsection (a), the Federal question. Trade Commission shall enforce such requirements. For the purpose of the exercise by the Federal Trade Commission of "§ 703. Regulations its functions and powers under the Federal Trade Commission "The Board shall prescribe regulations to carry out the Act, a violation of any requirement imposed under this title purposes of this title. These regulations may contain but are shall be deemed a violation of a requirement imposed under not limited to such classifications, differentiation, or other that Act. All of the functions and powers of the Federal Trade provision, and may provide for such adjustments and excep- Commission under the Federal Trade Commission Act are tions for any class of transactions, as in the judgment of the available to the Commission to enforce compliance by any Board are necessary or proper to effectuate the purposes of person with the requirements imposed under this title, irrethis title, to prevent circumvention or evasion thereof, or to spective of whether that person is engaged in commerce or facilitate or substantiate compliance therewith. Such regulameets any other jurisdictional tests in the Federal Trade Comtions shall be prescribed as soon as possible after the date mission Act. of enactment of this Act, but in no event later than the effective "(d) The authority of the Board to issue regulations under date of this Act. this title does not impair the authority of any other agency designated in this section to make rules respecting its own "§ 704. Administrative enforcement procedures in enforcing compliance with requirements imposed "(a) Compliance with the requirements imposed under this under this title. title shall be enforced under: "(1) Section 8 of the Federal Deposit Insurance Act, in "8 705. Relation to State laws the case of— "(a) A request for the signature of both parties to a marriage "(A) national banks, by the Comptroller of the Currency, for the purpose of creating a valid lien, passing clear title, "(B) member banks of the Federal Reserve System (other waiving inchoate rights to property, or assigning earnings, shall than national banks), by the Board, not constitute discrimination under this title: Provided, how- "(C) banks insured by the Federal Deposit Insurance ever. That this provision shall not be construed to permit a Corporation (other than members of the Federal Reserve Sys- creditor to take sex or marital status into account in connection tem), by the Board of Directors of the Federal Deposit Insur- with the evaluation of creditworthiness of any applicant. ance Corporation. "(b) Consideration or application of State property laws "(2) Section 5(d) of the Home Owners' Loan Act of 1933, directly or indirectly affecting creditworthiness shall not consection 407 of the National Housing Act, and sections 6(i) stitute discrimination for purposes of this title. and 17 of the Federal Home Loan Bank Act, by the Federal "(c) Any provision of State law which prohibits the separate Home Loan Bank Board (acting directly or through the Federal extension of consumer credit to each party to a marriage shall Savings and Loan Insurance Corporation), in the case of any not apply in any case where each party to a marriage voluntarily institution subject to any of those provisions. applies for separate credit from the same creditor: Provided, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 FEDERAL RESERVE BULLETIN • DECEMBER 1974 That in any case where such a State law is so preempted, TITLE VI—DISPOSITION OF ABANDONED each party to the marriage shall be solely responsible for the MONEY ORDERS AND TRAVELER'S CHECKS debt so contracted. "(d) When each party to a marriage separately and volun- FINDINGS tarily applies for and obtains separate credit accounts with the SEC 601. The Congress finds and declares that— same creditor, those accounts shall not be aggregated or other- (1) the books and records of banking and financial organiwise combined for purposes of determining permissible finance zations and business associations engaged in issuing and selling charges or permissible loan ceilings under the laws of any State money orders and traveler's checks do not, as a matter of or of the United States. business practice, show the last known addresses of purchasers "(e) Except as otherwise provided in this title, the applicant of such instruments; shall have the option of pursuing remedies under the provisions (2) a substantial majority of such purchasers reside in the of this title in lieu of, but not in addition to, the remedies States where such instruments are purchased; provided by the laws of any State or governmental subdivision (3) the States wherein the purchasers of money orders and relating to the prohibition of discrimination on the basis of traveler's checks reside should, as a matter of equity among sex or marital status with respect to any aspect of a credit the several States, be entitled to the proceeds of such instrutransaction. ments in the event of abandonment; (4) it is a burden on interstate commerce that the proceeds "§ 706. Civil liability of such instruments are not being distributed to the States "(a) Any creditor who fails to comply with any requirement entitled thereto; and imposed under this title shall be liable to the aggrieved appli- (5) the cost of maintaining and retrieving addresses of cant in an amount equal to the sum of any actual damages purchasers of money orders and traveler's checks is an addisustained by such applicant acting either in an individual tional burden on interstate commerce since it has been detercapacity or as a representative of a class. mined that most purchasers reside in the State of purchase "(b) Any creditor who fails to comply with any requirement of such instruments. imposed under this title shall be liable to the aggrieved applicant for punitive damages in an amount not greater than DEFINITIONS $10,000, as determined by the court, in addition to any actual SEC. 602. As used in this title— damages provided in section 706(a): Provided, however, That (1) "banking organization" means any bank, trust company, in pursuing the recovery allowed under this subsection, the savings bank, safe deposit company, or a private banker applicant may proceed only in an individual capacity and not engaged in business in the United States; as a representative of a class. (2) "business association" means any corporation (other "(c) Section 706(b) notwithstanding, any creditor who fails than a public corporation), joint stock company, business trust, to comply with any requirement imposed under this title may partnership, or any association for business purposes of two be liable for punitive damages in the case of a class action or more individuals; and in such amount as the court may allow, except that as to each (3) "financial organization" means any savings and loan member of the class no minimum recovery shall be applicable, association, building and loan association, credit union, or and the total recovery in such action shall not exceed the lesser investment company engaged in business in the United States. of $100,000 or 1 percent of the net worth of the creditor. In determining the amount of award in any class action, the STATE ENTITLED TO ESCHEAT OR TAKE CUSTODY court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence SEC. 603. Where any sum is payable on a money order, of failures of compliance by the creditor, the resources of the traveler's check, or other similar written instrument (other than creditor, the number of persons adversely affected, and the a third party bank check) on which a banking or financial extent to which the creditor's failure of compliance was inten- organization or a business association is directly liable— tional. (1) if the books and records of such banking or financial "(d) When a creditor fails to comply with any requirement organization or business association show the State in which imposed under this title, an aggrieved applicant may institute such money order, traveler's check, or similar written instrua civil action for preventive relief, including an application ment was purchased, that State shall be entitled exclusively for a permanent or temporary injunction, restraining order, or to escheat or take custody of the sum payable on such instruother action. ment, to the extent of that State's power under its own laws "(e) In the case of any successful action to enforce the to escheat or take custody of such sum; foregoing liability, the costs of the action, together with a (2) if the books and records of such banking or financial reasonable attorney's fee as determined by the court shall be organization or business association do not show the State in added to any damages awarded by the court under the provi- which such money order, traveler's check, or similar written sions of subsections (a), (b), and (c) of this section. instrument was purchased, the State in which the banking or "(f) No provision of this title imposing any liability shall financial organization or business association has its principal apply to any act done or omitted in good faith in conformity place of business shall be entitled to escheat or take custody with any rule, regulation, or interpretation thereof by the of the sum payable on such money order, traveler's check, Board, notwithstanding that after such act or omission has or similar written instrument, to the extent of that State's power occurred, such rule, regulation, or interpretation is amended, under its own laws to escheat or take custody of such sum, rescinded, or determined by judicial or other authority to be until another State shall demonstrate by written evidence that invalid for any reason. it is the State of purchase; or "(g) Without regard to the amount in controversy, any action (3) if the books and records of such banking or financial under this title may be brought in any United States district organizations or business association show the State in which court, or in any other court of competent jurisdiction, within such money order, traveler's check, or similar written instruone year from the date of the occurrence of the violation. ment was purchased and the laws of the State of purchase do not provide for the escheat or custodial taking of the sum "§ 707. Effective date payable on such instrument, the State in which the banking "This title takes effect upon the expiration of one year after or financial organization or business association has its the date of its enactment.". principal place of business shall be entitled to escheat or take Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 861 custody of the sum payable on such money order, traveler's RESERVES OF MEMBER BANKS check, or similar written instrument, to the extent of that State's The Board of Governors has amended its Regupower under its own laws to escheat or take custody of such sum, subject to the right of the State of purchase to recover lation D to modify the reserve balances that memsuch sum from the State of principal place of business if and ber banks are required to maintain. when the law of the State of purchase makes provision for escheat or custodial taking of such sum. AMENDMENTS TO REGULATION D APPLICABILITY Effective November 28, 1974, section SEC. 604. This title shall be applicable to sums payable on 204.5(a)(l)(ii) and (2)(ii) and (iii) are amended money orders, traveler's checks, and similar written instruments deemed abandoned on or after February 1, 1965, except to read as follows: to the extent that such sums have been paid over to a State prior to January 1, 1974. SECTION 204.5—RESERVE REQUIREMENTS REGULATION OF INTEREST RATES ON CERTAIN OBLIGATIONS (a) Reserve percentage. Pursuant to the provisions of Section 19 of the Federal Reserve Act An Act of Congress approved October 29, 1974 and § 204.2(a) and subject to paragraph (c) of this (P.L. 93-501) authorizes Federal regulatory agensection, the Board of Governors of the Federal cies to place interest rates ceilings on securities Reserve System hereby prescribes the following issued by bank holding companies. Section 101 reserve balances that each member bank of the of Title I and section 301 of Title II read as Federal Reserve System is required to maintain follows: on deposits with the Federal Reserve Bank of its district. (1) If not in a reserve city— TITLE III—APPLICABILITY OF STATE USURY CEILINGS TO CERTAIN OBLIGATIONS ISSUED BY BANKS AND AFFILIATES (ii) 3 per cent of its time deposits outstanding SEC. 301. Section 19 of the Federal Reserve Act is amended by adding at the end thereof the following new subsection: on November 28, 1974, which have an initial "(k) No member bank or affiliate thereof, or any successor maturity of 180 days or more, or are issued on or assignee of such member bank or affiliate or any endorser, or after November 28, 1974 with an initial matuguarantor, or surety of such member bank or affiliate may plead, raise, or claim directly or by counterclaim, setoff, or rity of 180 days or more, 3 per cent of its time otherwise, with respect to any deposit or obligation of such deposits up to $5 million, outstanding on Nomember bank or affiliate, any defense, right, or benefit under vember 28, 1974, which have an initial maturity any provision of a statute or constitution of a State or of a territory of the United States, or of any law of the District of less than 180 days, or are issued on or after of Columbia, regulating or limiting the rate of interest which November 28, 1974 with an initial maturity of less may be charged, taken, received, or reserved, and any such than 180 days, plus 6 per cent of such deposits provision is hereby preempted, and no civil or criminal penalty which would otherwise be applicable under such provision shall in excess of $5 million.* apply to such member bank or affiliate or to any other person." AN ACT To authorize the regulation of interest rates payable on obligations issued by affiliates of certain depository institutions, (2) If in a reserve city (except as to any bank and for other purposes. located in such a city that is permitted by the Board Be it enacted by the Senate and House of Representatives of Governors of the Federal Reserve System, purof the United States of America in Congress assembled, suant to § 204.2(a)(2), to maintain the reserves TITLE I—REGULATION OF INTEREST specified in subparagraph (1) of this paragraph)— RATES ON CERTAIN OBLIGATIONS SEC. 101. Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) is amended by inserting "and, regardless of the (ii) 3 per cent of its time deposits outstanding use of the proceeds," immediately before "shall be deemed a deposit". on November 28, 1974, which have an initial (b) The amendment made by subsection (a) shall not apply to any bank holding company which has filed prior to the date of enactment of this Act an irrevocable declaration with the Board of Governors of the Federal Reserve System to divest *Time deposits issued in the period November 14, 1974 itself of all of its banks under section 4 of the Bank Holding to November 18, 1974, with maturities of between 120 and Company Act, or to any debt obligation which is an exempted 179 days, may be treated as if they had initial maturities of security under section 3(a) (3) of the Securities Act of 1933. 180 days or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 FEDERAL RESERVE BULLETIN • DECEMBER 1974 maturity of 180 days or more, or are issued on during each successive four-week ("mainteor after November 28, 1974 with an initial matu- nance") period, a member bank shall maintain rity of 180 days or more, 3 per cent of its time with the Reserve Bank of its district a daily deposits up to $5 million, outstanding on No- average balance equal to 8 per cent of the daily vember 28, 1974, which have an initial maturity average amount of such deposits during the fourof less than 180 days, or are issued on or after week computation period ending on the Wednes- November 28, 1974 with an initial maturity of less day fifteen days before the beginning of the mainthan 180 days, plus 6 per cent of such deposits tenance period. An excess or deficiency in reserves in excess of $5 million * in any week of a maintenance period under this (iii) $52,750,000 plus 17Vi per cent of its net paragraph shall be subject to § 204.3(a)(3), as if demand deposits in excess of $400 million. computed under § 204.3(a)(2), and deficiencies under this paragraph shall be subject to § 204.3(b).9 RESERVES OF MEMBER BANKS SECTION 213.7—RESERVES AGAINST FOREIGN ACTIVITIES OF NATIONAL BANKS FOREIGN BRANCH DEPOSITS The Board of Governors has approved technical (a) Transactions with parent bank. During amendments to its Regulation D, Reserves of each week of the four-week period beginning June Member Banks, and Regulation M, Foreign Ac- 21, 1973, and during each week of each successive tivities of National Banks, in order to delete certain four-week ("maintenance") period, a member provisos pertaining to the gradual elimination of bank having one or more foreign branches shall reserve-free bases on member banks' Euro-dollar maintain with the Reserve Bank of its district, as borrowings, since these reserve-free bases have a reserve against its foreign branch deposits, a expired. daily average balance equal to 8 per cent of the daily average total of (1) net balances due from its domestic offices AMENDMENTS TO REGULATIONS to such branches, and D AND M (2) assets (including participants) held by such branches which were acquired from its domestic Effective November 22, 1974, section 204.5(c) offices (other than assets representing credit exof Regulation D and section 213.7(a) of Regulatended to persons not residents of the United tion M are amended to read as follows: States), during the four-week computation period ending on the Wednesday fifteen days before the SECTION 204.5—RESERVE REQUIREMENTS beginning of the maintenance period. (c) Reserve percentages against certain de- RESERVES OF MEMBER BANKS posits by foreign banking offices. Deposits represented by promissory notes, acknowledgements INTEREST ON DEPOSITS of advance, due bills, or similar obligations described in § 204.1(f) to foreign offices of other In conjunction with P.L. 93-495 which, effecbanks,8 or to institutions the time deposits of which tive November 27, 1974, provides Federal deposit are exempt from the rate limitations of Regulation insurance up to $100,000 for time and savings Q pursuant to § 217.3(g) thereof, shall not be deposits of governmental units, the Board of Govsubject to paragraph (a) of this section or to § ernors has amended Regulation D (12 CFR 204) 204.3(a)(1) and (2); but during each week of the and Regulation Q (12 CFR 217) to include deposits four-week period beginning June 21, 1973, and of governmental units in the definition of savings deposits. *See preceding page for footnote. 8 Any banking office located outside the States of the United 9The term "computation period" in § 204.3(a)(3) and (b) States and the District of Columbia of a bank organized under shall, for this purpose, be deemed to refer to each week of domestic or foreign law. a maintenance period under this paragraph. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 863 AMENDMENTS TO REGULATIONS (d) and subpart 2 of this paragraph, no member bank shall pay interest on any time deposit at a D AND Q rate in excess of the applicable rate under the Effective November 27, 1974, section following schedule: 204.1(e)(1) of Regulation D and sections 217.1(e)(1) and 217.7 of Regulation Q are amended to read as follows: (d) Governmental unit time deposits of less SECTION 204.1—DEFINITIONS than $100,000. (1) Except as provided in paragraph (a), no member bank shall pay interest on any time deposit which consists of funds deposited to the credit of, (e) Savings deposits. The term "savings de- or in which the entire beneficial interest is held posit" means a deposit— by, the United States, any State of the United (1) which consists of funds deposited to the States, or any county, municipality, or political credit of one or more individuals, or of a corpora- subdivision thereof, the District of Columbia, the tion, association, or other organization operated Commonwealth of Puerto Rico, the Virgin Islands, primarily for religious, philanthropic, charitable, American Samoa, Guam, or political subdivision educational, fraternal, or other similar purposes thereof, at a rate in excess of the highest of any and not operated for profit;4 or in which the entire of the permissible rates that can be paid on time beneficial interest is held by one or more individ- deposits under $100,000 by any Federally insured uals or by such a corporation, association or other commercial bank, mutual savings bank or savings organization, or which consists of funds deposited and loan institution.2 to the credit of, or in which the entire beneficial interest is held by, the United States, any State SECURITIES CREDIT TRANSACTIONS of the United States, or any county, municipality, The Board of Governors has amended its seor political subdivision thereof, the District of curities credit Regulations G, T, and U to suspend Columbia, the Commonwealth of Puerto Rico, the for a six-month period the limitation on use of Virgin Islands, American Samoa, Guam, or politthe same-day substitution rule in accounts where ical subdivision thereof, except where the deposit a customer's equity in collateral is less than 40 is to the credit of the bank's own trust department per cent. and the funds involved are utilized to cover checks; and AMENDMENTS TO REGULATIONS G, T, AND U * * * ** 1. Effective November 5, 1974 the Supplement SECTION 217.7—MAXIMUM RATES OF IN- to Regulation G is amended to read as follows: TEREST PAYABLE BY MEMBER BANKS ON TIME AND SAVINGS DEPOSITS SECTION 207.5—SUPPLEMENT * * * ** (f) Minimum equity ratio. The minimum eq- (b) Time deposits of less than $100,000. uity ratio of a credit subject to § 207.1 is 40 per (1) Except as provided in paragraphs (a) and cent. For the period November 5, 1974, through May 5, 1975, all same-day substitutions of collat- 4 Deposits in joint accounts of two or more individuals may be classified as savings deposits if they meet the other require- eral permitted by section 207.1(j)(2) for credits ments of the above definition, but deposits of a partnership in which the equity ratio equals or exceeds the operated for profit may not be so classified. Deposits to the minimum equity ratio shall also be permitted for credit of an individual or a governmental unit of funds in which the beneficial interest is held by a corporation, partnership, association, or other organization operated for profit or not operated primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes may not be classified as savings deposits unless permitted elsewhere within 2The highest permissible rate is currently 7.5 per cent per this subsection. annum (12 CFR 329.7 and 12 CFR 526.5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 864 FEDERAL RESERVE BULLETIN • DECEMBER 1974 all credits in which the equity ratio is less than 3. Effective November 5, 1974 the Supplement the minimum equity ratio. is amended by adding a sentence giving notice of the suspension and its duration. The amended to 2. Effective November 5, 1974 the Supplement read as follows: to Regulation T is amended to read as follows: SECTION 221.4—SUPPLEMENT SECTION 220.8—SUPPLEMENT (f) Minimum equity ratio. The minimum equity ratio of a credit subject to § 221.1 is 40 per cent. For the period November 5, 1974, through (g) Account subject to section 8(g). May 5, 1975, all same-day transactions permitted by § 221.1(c) for credits in which the equity ratio is equal to or exceeds the minimum equity ratio shall (3) For the period November 5, 1974, through also be permitted for those credits in which the May 5, 1975, all transactions permitted by §§ equity ratio is less than the minimum equity ratio. 220.3(b)(1) and 220.3(g) for accounts not subject to section 8(g) shall also be permitted in accounts subject to section 8(g). BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF registered one-bank holding company owning BANK HOLDING COMPANY ACT about 59 per cent of Bank. The proposal contemplates shifting control of Bank from the partnership COMMONWEALTH BANCSHARES, INC., to a corporation along with acquisition of addi- DALLAS, TEXAS tional shares of Bank by the corporation. With deposits of $19.6 million, Bank holds approxi- ORDER DENYING FORMATION OF BANK mately .39 of one per cent of the total commercial HOLDING COMPANY bank deposits in the relevant banking market (ap- Commonwealth Bancshares, Inc., Dallas, proximated by the Dallas Ranally Metro Area) and Texas, has applied for the Board's approval under is the 51st largest bank in that market.1 Inasmuch § 3(a)(1) of the Bank Holding Company Act (12 as this proposal represents essentially a reorgani- U.S.C. 1842(a)(1)) of formation of a bank holding zation of existing interests and Applicant has no company through acquisition of 88 per cent of the present banking subsidiaries, the acquisition of voting shares of Commonwealth National Bank of Bank by Applicant would neither eliminate any Dallas, Dallas, Texas ("Bank"). significant existing or potential competition, in- Notice of the application, affording opportunity crease the concentration of banking resources, nor for interested persons to submit comments and have any adverse effect on competition within the views, has been given in accordance with § 3(b) Dallas market. Accordingly, the Board concludes of the Act. The time for filing comments and views that competitive considerations are consistent with has expired, and the Board has considered the approval of the application. application and all comments received in light of The Board has indicated on previous occasions the factors set forth in § 3(c) of the Act (12 U.S.C. that it believes that a holding company should 1842(c)). provide a source of strength to its subsidiary Applicant is a nonoperating corporation organbank(s), and that it will examine closely the conized for the purpose of becoming a bank holding company through the acquisition of Bank. The sole shareholders of Applicant are three individuals *A11 banking data are as of December 31, 1973, unless who are now members of a partnership that is a otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 865 dition of the Applicant in each case with this view Voting for this action: Vice Chairman Mitchell, and Goverin mind. The proposal involves an acquisition debt nors Sheehan, Holland, Wallich, and Cold well. Absent and not voting: Chairman Burns and Governor Bucher. of approximately $1.6 million, which Applicant proposes to service over a twelve-year period (Signed) THEODORE E. ALLISON, through a 50 per cent dividend payout from Bank. [SEAL] Secretary of the Board. In recent years, Bank has not paid any dividends. In the Board's view, this high level of debt and the dividend payout required from Bank to service TENNESSEE VALLEY BANCORP, INC., the debt could place an undue strain on Bank's NASHVILLE, TENNESSEE capital position. In this regard, the projected asset ORDER APPROVING ACQUISITION OF BANK and deposit growth and earnings from the Bank between 1974-1985, the debt retirement period, Tennessee Valley Bancorp, Inc., Nashville, do not appear to provide Applicant with the nec- Tennessee, a bank holding company within the essary financial flexibility to meet its annual debt meaning of the Bank Holding Company Act, has service requirements while maintaining adequate applied for the Board's approval under § 3(a)(3) capital at Bank. On the basis of the above banking of the Act (12 U.S.C. 1842(a)(3)) to convert factors, and other facts of record, the Board is nonvoting preferred shares into 50 per cent or more unable to conclude that it would be in the public of the voting shares of Mountain Empire Bank, interest to permit the formation of a one-bank Johnson City, Tennessee ("Bank"), a proposed holding company with an initial debt structure new bank. which could result in impairing Bank's financial Notice of the application, affording opportunity condition. Accordingly, the Board concludes that for interested persons to submit comments and the financial aspects of Applicant's proposal weigh views, has been given in accordance with § 3(b) against approval of the application. of the Act. The time for filing comments and views The proposed formation essentially involves the has expired, and the Board has considered the reorganization of the ownership interests of the application and all comments received, including partnership without any significant changes in those of the Tennessee Bankers Association and Bank's operations or any additional services of- its Independent Bankers Division, the Tennessee fered to customers that are not already provided Association of Registered Bank Holding Compaby Bank. Consequently, considerations relating to nies, and three Tennessee banks, in light of the the convenience and needs of the community to factors set forth in § 3(c) of the Act (12 U.S.C. be served lend no weight toward approval of the 1842(c)). application. On the contrary, as noted above, the Applicant, the fifth largest bank holding comdebt service requirements of Applicant's proposal pany in Tennessee, controls 11 banks with aggrecould impair Bank's ability to maintain its capital gate deposits of $935 million, representing 8.0 per adequacy and to continue to serve the community cent of total commercial bank deposits in the as a viable banking organization. State.1 Since Bank is a proposed new bank, con- On the basis of all of the circumstances con- summation of the proposal would not immediately cerning this application, the Board concludes that increase Applicant's share of Statewide deposits. the financial considerations involved in this pro- Bank is to be located in the Johnson City bankposal present adverse circumstances bearing upon ing market,2 which is the relevant market. Applithe financial condition and prospects of both Ap- cant is the fourth largest banking organization in plicant and Bank. Such adverse factors are not the Johnson City banking market, controlling outweighed by any procompetitive effects or by through one subsidiary bank 11.3 per cent of total benefits which would result in serving the conven- deposits held by commercial banks in the market. ience and needs of the community. Accordingly, The two largest banking organizations in the marit is the Board's judgment that approval of the ket (both multi-bank holding companies) control application would not be in the public interest and approximately 72 per cent of the market's comthat the application should be denied. On the basis of the record, the application is 1A\\ banking data are as of December 31, 1973, and reflect denied for the reasons summarized above. bank holding company formations and acquisitions approved By order of the Board of Governors, effective through October 31, 1974. November 27, 1974. 2The Johnson City banking market is approximated by the following cities: Elizabethton, Jonesboro, Limestone, and Johnson City, Tennessee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 866 FEDERAL RESERVE BULLETIN • DECEMBER 1974 mercial bank deposits. Since Bank is a proposed out the prior approval of the Board, as required new bank, consummation of the proposal would by the Act. not eliminate any existing competition between We turn first to the contention of protestants that Applicant and Bank, nor would it result in an approval of the subject proposal would violate the increase in the concentration of banking resources provisions of the Tennessee Bank Structure Act. in the market. Furthermore, it does not appear that If the contention of the protestants is correct, it any significant potential competition would be is clear that the Board may not approve the proforeclosed as a result of the consummation of the posal.3 The Tennessee Bank Structure Act became proposal. Applicant does not occupy a dominant effective on March 4, 1974. Its purpose, broadly position in the market, and it does not appear that stated, is to prohibit, until after January 1, 1980, the present proposal would raise significant bar- the acquisition by a registered bank holding comriers to entry from other organizations or individ- pany of any bank which has been in existence for uals not presently in the market. Accordingly, on a period of less than five years, which would the basis of the record before it, the Board con- include a de novo bank. While there are several cludes that competitive considerations are consist- exceptions in the statute not here relevant, section ent with approval of the application. 3(c) of the Act does permit a bank holding com- The financial and managerial resources and pany to acquire shares of a bank if the holding prospects of Applicant, its subsidiary banks, and company held more than 50 per cent of such Bank are regarded as generally satisfactory, par- bank's shares prior to March 4, 1974. Protestants ticularly in view of Applicant's commitments to argue that the subject proposal, involving the acinject capital into certain of its subsidiaries. Thus, quisition of 50,000 nonvoting convertible preconsiderations relating to banking factors are con- ferred shares of Bank by Tennessee Valley Bansistent with approval. Considerations relating to corp, is an attempt to circumvent the provisions the convenience and needs of the community to of the Tennessee Bank Structure Act and is clearly be served lend some weight toward approval since contrary to the legislative intent of the Act. Bank would serve as an alternative source of full Being recently enacted, the relevant provisions banking services to residents of the area. of the Tennessee Bank Structure Act have yet to In its consideration of the subject application, be interpreted by any Tennessee Court. In exerit is noted that the Tennessee Bankers Association, cising its responsibilities under the Bank Holding its Independent Bankers Division the Tennessee Company Act, the Board would normally look to Association of Registered Bank Holding Compa- such authoritative State court interpretations of a nies, and three commercial banks in Tennessee State statute in instances where protestants to a (here collectively referred to as "protestants") holding company proposal contend that the prohave objected to approval of the application. The posal would contravene State law. Failing a judiprotestants contend generally that 1) approval of cial decision on the question, the Board inquires the proposal would violate provisions of the Ten- next to see if the Attorney General in the State nessee Bank Structure Act of 1974; and 2) Ten- has rendered an opinion that would assist the nessee Valley Bancorp has violated § 3 of the Bank Board in resolving the issue. Here too, the Board Holding Company Act by acquiring control of is unaware of any Attorney General opinion on Bank without the prior approval of the Board, as the question, nor have the Applicant or the protesrequired by the Act. Upon receipt of the objections tants cited the Board to any such opinion in support to the application, the Board accorded Applicant of their respective positions. It appears from the an opportunity to respond to the points raised by record that the only authoritative opinion that has the protestants and Applicant availed itself of the been rendered on the question has been that of opportunity to respond. The Board has considered the Acting Commissioner of Banking for the State fully the comments received from the protestants, of Tennessee, who has indicated that the Tennes- Applicant's response thereto, and additional sub- see Department of Banking has no objection to missions on behalf of certain of the protestants the proposal.4 The Acting Commissioner states: and, for the reasons summarized below, concludes that 1) approval of the subject proposal is not barred by the provisions of the Tennessee Bank 3See Whitney National Bank in Jefferson Parish v. Bank Structure Act of 1974; and 2) Tennessee Valley of New Orleans & Trust Co., 379 U.S. 411 (1965). Bancorp has not violated § 3 of the Bank Holding 4Letter of March 6, 1974, from Hugh F. Sinclair, Acting Commissioner of Banking, State of Tennessee, to Federal Company Act by acquiring control of Bank with- Reserve Bank of Atlanta. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 867 "Since there appears to be no legal obstacle to Board inform the company that the Board has the proposal, we have no objection thereto." The made a preliminary determination of control and Acting Commissioner goes on to examine the the company is given the opportunity to, "(i) applicability of the Tennessee Bank Structure Act indicate to the Board its willingness to terminate to the proposal and finds that Tennessee Valley the control relationship . . .; (ii) state that it will Bancorp benefits from the exception in section 3(c) promptly seek Board approval to retain the control of the Act, since Tennessee Valley Bancorp owned relationship, . . .; or (iii) set forth such facts and more than 50 per cent of the shares of Bank prior circumstances as may support its contention that to the effective date of the statute. The Acting there is not a control relationship." Commissioner refers specifically to the fact that Assuming for the purposes of the discussion that the Act makes no distinction between voting and Bank constitutes a "bank" as defined in the Bank nonvoting stock and states: "Thus, if a holding Holding Company Act, since the Board is only company owns a majority of all the shares of a empowered to find a control relationship after new bank, regardless of their class, it can make notice and opportunity for hearing, due process use of the exception afforded by section 3(c)." of law prevents a finding of control which would In the Board's view, the opinion of the Acting relate back so as to constitute a violation of the Commissioner of Banking is well reasoned and Bank Holding Company Act.5 A violation would, consistent with the plain language of the relevant however, occur were a company to fail to apply statute. Where as here, the State's administrative to retain the control relationship after a finding officer authorized under Tennessee law to interpret of control or to refuse to divest the control relathe banking laws of the State and to regulate tionship were the Board to deny any such retention banking practices has advised the Board of his application. Thus, the second contention of the view that the proposal is permissible under State protestants does not preclude favorable Board aclaw, the Board believes that it would be inappro- tion on the subject application. priate for it to adopt a contrary interpretation of Accordingly, on the basis of the entire record, the statute in question, particularly when the Act- it is the Board's judgment that consummation of ing Commissioner's opinion is not clearly errone- the proposed acquisition would be in the public ous and is consistent with the plain language of interest and, for the reasons summarized above, the statute. Accordingly, the Board concludes that the application should be, and is hereby approved. the subject proposal is not prohibited by the Ten- The transaction shall not be made (a) before the nessee Bank Structure Act and, therefore, Board thirtieth calendar day following the effective date approval of the application is not barred. of this Order or (b) later than three months after Turning to the second contention of the protes- that date, and (c) Mountain Empire Bank, Johnson tants, i.e., that Tennessee Valley Bancorp has City, Tennessee, shall be opened for business not violated the Bank Holding Company Act by ac- later than six months after the effective date of quiring a controlling influence over the manage- this Order. Each of the periods described in (b) ment and affairs of Bank without the prior approval and (c) may be extended for good cause by the of the Board, as required by the Act, the Board Board, or by the Federal Reserve Bank of Atlanta also finds this argument to be no impediment to pursuant to delegated authority. approval of the subject application. In this regard By order of the Board of Governors, effective protestants rely on the presumptions of control November 26, 1974. found in Regulation Y. These presumptions of Voting for this action: Chairman Burns and Governors control, adopted by the Board for use in proceed- Mitchell, Sheehan, Bucher, Holland, Wallich, and Coldwell. ings instituted by the Board, provide that the Board may determine, as provided by the Act, after (Signed) THEODORE E. ALLISON, notice and an opportunity for a hearing, that a [SEAL] Secretary of the Board. company directly or indirectly exercises a controlling influence over the management or policies of a bank. If one of the regulatory presumptions of 5 It should be noted that indirect control of the voting shares of a bank as for instance through officers and directors of the control applies under a given situation, the proceholding company, without prior Board approval, would of dures set forth in the regulation provide that the course constitute a violation of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 868 FEDERAL RESERVE BULLETIN • DECEMBER 1974 ORDERS UNDER SECTION 4 OF cent of the total deposits held by savings and loan BANK HOLDING COMPANY ACT associations in Arizona. It now operates 15 branch offices, 14 in central Maricopa County and one AMERICAN FLETCHER CORPORATION, in Pima County. Southwest has two subsidiaries, INDIANAPOLIS, INDIANA one of which is engaged solely in providing advertising services to Southwest. Under section ORDER DENYING ACQUISITION OF SOUTHWEST 4(a)(2) of the Act, a bank holding company may SAVINGS AND LOAN ASSOCIATION indirectly furnish services to its subsidiaries. The American Fletcher Corporation, Indianapolis, other subsidiary, Southwest Service Corporation, Indiana, a bank holding company within the is engaged principally in providing bookkeeping meaning of the Bank Holding Company Act of and data processing services to Southwest, but also 1956, has applied for the Board's prior approval processes the accounts and billings for four mortunder section 4(c)(8) of the Act for permission gage servicing firms and rents the balance of to engage in the activity of the operation of a available time on its data processing equipment savings and loan association through the acquisi- to others who furnish their own personnel, suption of Southwest Savings and Loan Association plies, and programs. This activity is generally ("Southwest"), Phoenix, Arizona, a savings and permissible for bank holding companies.3 loan association insured by the Federal Savings Savings and loan associations may be classified and Loan Insurance Corporation. Such activity has according to corporate structure into mutual, that not previously been determined by the Board to is, depositor-owned, and stock, that is, non-debe closely related to banking.1 positor-owned. Only stock associations may be Notice of the application, affording opportunity acquired by a bank holding company (or other for interested persons to submit comments and corporate entity), and stock associations currently views on whether such activity is closely related comprise only a minor part of the savings and loan to banking, as well as on the public interest fac- industry. With certain limited exceptions, all fedtors, has been duly published (38 Federal Register erally-chartered savings and loan associations are 22802). The time for filing comments and views mutual in form as are the majority of State-charhas expired and those filed, including testimony tered savings and loan associations. As of Deand exhibits received at the oral presentation be- cember 31, 1972, there were 5,448 savings and fore available members of the Board, held October loan associations in the United States, of which 30 and 31, 1973, have been considered. 665 (representing 12 per cent) were stock associa- Applicant2 controls American Fletcher National tions. Twenty-one States currently charter stock Bank and Trust Company ("Bank"), Indianapolis, associations, and 438 of the 665 stock associations Indiana, the largest bank in that State, with total in existence at year-end 1972 were located in four domestic deposits of $1.3 billion as of December of those States, California, Illinois, Ohio, and 31, 1973. Through a nonbanking subsidiary, Ap- Texas. Conversion from mutual form to stock form plicant is engaged in mortgage banking activities would increase the number of savings and loan in Indiana and nearby States. associations that would be potential candidates for Southwest (deposits of $116 million at year-end acquisition by bank holding companies; however, 1972) is the fourth largest savings and loan asso- Congress recently extended until June 30, 1976, ciation in the State of Arizona and holds 7 per with limited exceptions, a prohibition, originally imposed in 1965, against such conversions by savings and loan associations insured by the Fed- 1On February 17, 1972 and March 9, 1972, the Board eral Savings and Loan Insurance Corporation.4 approved separate affiliations of each of two savings and loan Operation of a savings and loan association associations in Rhode Island with two banks in Rhode Island. 58 Federal Reserve BULLETIN 313 and 417 (1972). At that traditionally and basically consists of the receipt time, the Board characterized the Rhode Island situation as of deposits in the form of share, certificate, or "special" in view of the historical affiliation of mutual thrift deposit accounts for the purpose of lending funds institutions and commercial banks in that State and express State legislative provision for such affiliation. Therefore, the so received to finance the construction, sale, or Board treated that situation "separately from the question whether operation of a savings and loan association by a bank holding company is so closely related to banking that it can be a permissible activity within the meaning of section 4(c)(8) of the Act." 3 12 CFR 225.4(a)(8) and 12 CFR 225.123. 2 As of December 31, 1973, Applicant possessed consoli- 4As of December 31, 1972, 4,191 of the 5,448 savings and dated resources of approximately $2.2 billion. loan associations were federally-insured. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 869 purchase of housing and other real estate, and the economy, nor of the separate statutory frameworks actual lending of these funds for such purposes, regulating banks and savings and loan associaall in the ordinary course of business. Banks have tions. However, neither of these propositions is traditionally received deposits and loaned funds so inconsistent with the determination, compelled by received for various purposes, including financing reality, that the operation of a savings and loan the construction, sale, and purchase of housing and association is "closely related to banking or manother real estate. Banks and savings and loan aging or controlling banks." associations are financial intermediaries whose li- Southwest would, as an affiliate of Applicant, ability structures are dominated by deposits and continue to serve the specialized purpose for which whose asset structures are dominated by loans. it was formed. Neither its attention nor its re- Specifically, both receive time deposits and make sources would be diverted from the acceptance of mortgage loans. That being the case, banks and savings deposits primarily for mortgage lending savings and loan associations are more closely to finance purchases of single-family residential related than are banks and mortgage companies. properties.9 The Bank Holding Company Act and The Board has previously concluded, as a general other applicable Federal and State regulatory promatter, that mortgage companies engage in activi- visions would limit the operations of Southwest ties that are "closely related to banking or manag- to that purpose. ing or controlling banks."5 The existence of separate regulatory frameworks Further, there is a discernible trend toward les- for various industries has not barred the affiliation sening distinctions between banks and savings and of corporations in those respective industries. loan associations. Geographic restrictions on Bank holding companies may be affiliated with mortgage lending by savings and loan associations investment advisers, consumer finance companies, have been liberalized. Recently, savings and loan industrial loan companies, credit insurance underassociations were permitted by the Federal Home writers, and courier companies. In instances of Loan Bank Board to participate in the Federal "grandfathered" one-bank holding companies, funds market, previously dominated by commer- banks are affiliated with air carriers, title insurance cial banks.6 Savings and loan associations recently companies, life and health insurance companies, were authorized to offer large negotiable certifi- radio and television broadcasting companies, cascates of deposits.7 The role of savings and loan ualty insurance underwriting companies, and cable associations in the nation's payments mechanism television companies. Each operates under a sepais growing. The President's Commission on Fi- rate regulatory framework from that of commercial nancial Institutions and others have made propos- banks, yet no regulatory body, to the Board's als to expand the powers of savings and loan knowledge, has found the existence of such associations. The close relationship between frameworks a bar to affiliation with commercial banking and operation of savings and loan associ- banks.10 Similarly, certain companies operating ations would become even closer should these savings and loan associations are "grandfathered" proposals be implemented. Should this trend con- one-bank holding companies, and such affiliations tinue to the point where savings and loan associa- were approved by the Federal Savings and Loan tions both accept demand deposits and engage in Insurance Corporation. the business of making commercial loans, savings In 1933, Congress, seeing a need to separate and loan associations would actually become two industries, enacted the Banking Act of 1933, "banks" for purposes of the Act.8 parts of which are known as the Glass-Steagall The Board is not unmindful of the specialized Act, to separate investment banking from comfunction savings and loan associations serve in the 9 Provisions of the Savings and Loan Holding Company Act (12 U.S.C. 1730a) and enforcement of those provisions by 5 12 CFR 225.4(a)(1). the Federal Savings and Loan Insurance Corporation, as well 6 12 CFR 523.10(g)(4). as supervision of Southwest by the Federal Home Loan Bank 7 12 CFR 545.1-5. Board, State Department of Banking of Arizona, and the 8 12 U.S.C. 1841(c). Until that point is reached, if ever, Board, would effectively prevent improper diversion of funds savings and loan associations, although closely related to from Southwest to Applicant and its subsidiaries. banking, may not be deemed "banks," and the affiliation of 10The list- of common ownership of companies in two an out-of-State savings and loan association with a bank separately regulated industries is longer when expanded to through common ownership by a bank holding company would include common ownership of two nonbanking industries; thus not be prohibited by section 3(d) of the Act (12 U.S.C. regulated air carriers own regulated radio and television broad- 1842(d)). casters and vice-versa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 870 FEDERAL RESERVE BULLETIN • DECEMBER 1974 mercial banking. That Act expressly prohibits the quartered in Phoenix.12 The two largest held apaffiliation of member banks and securities compa- proximately 80 per cent of the total deposits held nies. Congress has not similarly evidenced an by savings and loan associations headquartered in intent to separate operation of savings and loan Phoenix,13 as of June 30, 1972. At that time, associations from commercial banking, although, Southwest was the third largest of the four and by passage of the Glass-Steagall Act, it evidenced held approximately 10 per cent of the total deposits its awareness of the means to separate other in- held by savings and loan associations in Phoenix. dustries from banking.11 Rather, Congress has Applicant does not operate a savings and loan delegated to the Board the decision whether com- association although it does indirectly, through mercial banks should be permitted to affiliate with Bank, engage in the receipt of deposits and, companies engaged in nonbanking activities, through both Bank and American Fletcher Mortthrough common ownership by bank holding gage Company ("AFMC"), engage in the making companies, and has promulgated standards in sec- of mortgage loans. tion 4(c)(8) of the Act that the Board is to apply Bank, as of December 31, 1972,14 held 20 in deciding particular cases, that is, whether the savings and other time deposit accounts which activities of a particular company are "so closely amounted to $122,000 for persons located in related to banking or managing or controlling Maricopa County, Arizona.15 These accounts repbanks as to be a proper incident thereto." In the resent substantially less than 1 per cent of Bank's absence of explicit Congressional action concern- total savings and time deposit accounts. Bank has ing the affiliation of banks and savings and loan not made any mortgage loans to persons located associations, the Board has no alternative but to in the Phoenix area. AFMC operates offices in consider any such proposed affiliation under the Indiana, Illinois, Ohio, Kentucky, Florida, and the existing standards of section 4(c)(8). District of Columbia and specializes in the making The Board, based upon the record before it, is of real estate mortgage loans for industrial, comcompelled to conclude, and does conclude, that mercial, and multi-family construction projects the activity in which Southwest is engaged is and for land development. AFMC has only one closely related to banking. Whether it is a "proper mortgage loan outstanding to a borrower in the incident thereto" requires application of a second Phoenix area; it amounts to $425,000. Southwest standard promulgated by Congress in section has limited its mortgage activity to residential real 4(c)(8) of the Act, that is, whether its performance property and derives no deposits from Indiana and by Southwest, as an affiliate of Applicant, can no mortgage business from Indiana, Illinois, Ohio, reasonably be expected to produce benefits to the Kentucky, Florida, or the District of Columbia. public that outweigh possible adverse effects. The Board concludes that consummation of the In order to make such a determination in any proposed transaction would foreclose no signifiparticular case, the Board must, under section cant actual competition between Applicant and 4(c)(8) of the Act, consider the competitive effects Southwest for savings and time deposits or in the of the proposed affiliation. A competitive analysis making of mortgage loans. in the case of affiliation of a particular bank hold- It does not appear that Southwest is a likely ing company with a particular savings and loan association would be essentially similar to that the Board has regularly applied in cases involving the 12 It does not appear that inclusion of commercial banks in affiliation of two banks or of a bank holding this market analysis would significantly alter the conclusions company and a company engaged in an activity stated in the text. closely related to banking. Thus, anticompetitive 13This datum is an approximation since deposits held by non-Phoenix offices of Phoenix savings and loan associations effects in this area could be identified and avoided are included in reported head office totals and Phoenix deposit in the same manner as anticompetitive effects have data for any particular association must be estimated by subtracting head office totals of other savings and loan associations been avoided in other cases falling within the headquartered in Phoenix from total savings and loan deposits Board's jurisdiction under the Act. deriving from the Phoenix area. Therefore, the market shares Four savings and loan associations are head- in the text may be somewhat overstated as the underlying data effectively attribute Phoenix deposits held by non-Phoenixheadquartered savings and loan associations to the two largest Phoenix associations. 14There is no reason to believe that any significant change has occurred in the textual data since December 31, 1972. 11 Congress has also exhibited similar awareness in expressly 15 Geographic markets for deposits in savings and loan assoprohibiting by statute the ownership of air carriers by other ciations are presumed to be local in nature as banking markets carriers. See 49 U.S.C. § 1378(a)(5). have been held to be. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 871 entrant into mortgage loan or deposit markets in in markets served by Southwest, the affiliation of which Applicant or its subsidiaries presently con- Southwest with Applicant may increase the availduct significant operations. Southwest may law- ability of such funds. Southwest has experienced fully neither establish offices beyond the bounda- problems in the past in maintaining growth of its ries of the State of Arizona, nor make loans on capital accounts commensurate with the growth of property located beyond the territorial limits of that its deposits. State law requires that its capital State. Although there do exist alternative means accounts be maintained in an amount equal to at of entry into the Phoenix mortgage market by least 5 per cent of its deposits. Southwest's inabil- Applicant, it does not appear that Applicant is one ity to attract periodic infusions of capital has of the most likely potential entrants into that mar- forced it actually to discourage deposits at times. ket, particularly in view of the distance between Those lost deposits, assuming that they were not Phoenix and markets presently served by Appli- placed in other savings and loan associations, cant. Statutory and regulatory barriers effectively represent funds that otherwise would have been bar Applicant's entry into the Phoenix market for available to support housing in markets served by savings and time deposits. Accordingly, it does Southwest. Applicant has expressed its willingness not appear that consummation of the proposed to maintain the level of capital of Southwest comtransaction would foreclose any substantial proba- mensurate with the deposit growth of Southwest. bility of development of competition between That deposit growth has been projected to approx- Southwest and Applicant; nor does it appear that imately $500 million by 1980, requiring an influx either Southwest or Applicant presently exerts any of approximately $17 million in additional capital. influence on competition in the market or markets Applicant is prepared to make a commitment to respectively served by the other. provide that capital. It does not appear that the affiliation of South- Southwest's difficulties in raising capital to supwest with Applicant may result in an undue con- port its deposit growth have impeded its ability centration of resources in any section of the to attract deposits and indirectly its ability to make country, decreased or unfair competition, or con- mortgage loans. Its capacity to compete vigorously flicts of interests. The Board has also considered has accordingly been hampered by those difficulwhether the affiliation of Southwest with Applicant ties. To the extent Applicant would remedy these would adversely affect the flow of funds into any difficulties, the proposed affiliation may increase housing market. The record contains no evidence competition in areas served by Southwest. supporting assertions to that effect. As an insured These public benefits, however, are virtually savings and loan association, Southwest is re- entirely dependent upon the continuing infusion stricted by statute in its dealings with its affiliates16 of capital by Applicant into Southwest. Applicant and is subject to comprehensive regulation by State and Bank are both in generally satisfactory condisupervisory authorities, the Federal Savings and tion. However, Applicant's ratio of debt to equity Loan Insurance Corporation, the Federal Home is such that its capacity to deal with adverse Loan Bank Board, and, in the event of consum- conditions in the economic environment would be mation of the proposed transaction, by this Board. affected by the proposed acquisition of Southwest. The combined effect of statutory and regulatory Since Applicant would fund this acquisition with prohibitions against, and limitations upon, South- the proceeds of a loan from an unaffiliated bank, west's transactions with Applicant and its subsidi- its leverage would be increased. In the Board's aries and effective supervision by the appropriate judgment, that should be avoided at this time. agencies would effectively bar any significant di- The Board has previously expressed the view version of funds from Southwest to Applicant and that at this time bank holding companies generally any adverse effect upon the flow of housing funds should slow their rate of expansion into new acin the area served by Southwest. tivities and should direct their energies toward Rather than reduce funds available for housing strengthening existing operations, particularly where such expansion may be into new activities in which bank holding companies have not pre- 16 It appears that statutory provisions governing transactions viously engaged.17 That view is especially applibetween an insured savings and loan association that is a subsidiary of a savings and loan holding company and its affiliates are considerably more restrictive than are statutory 17 See Order of September 9, 1974, concerning the unprovisions governing transactions between member banks and derwriting of real estate mortgage guaranty insurance, Federal their affiliates. Compare 12 U.S.C. 1730a(d) with 12 U.S.C. Reserve BULLETIN, 39 Fed. Reg. 33712, 33713 (September 371c. 19, 1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 872 FEDERAL RESERVE BULLETIN • DECEMBER 1974 cable to bank holding companies applying to ac- I also concur with the Board's conclusion that quire companies which are highly leveraged and operation of a savings and loan association is which would require continuing infusions of capi- closely related to banking, but I would not intertal.18 The Board has frequently reiterated its view pret the Board's Order to mean that at this time that the primary role of a bank holding company all bank holding companies should avoid acquisishould be to serve as a source of financial strength tions of leveraged companies that may require and support for its subsidiaries. The financial and periodic infusions of capital. Certainly, bank managerial resources of a bank holding company holding companies, such as American Fletcher should not be unduly diverted from that role. Corporation, already significantly leveraged, Applicant has in the past two years consummated should avoid increasing that leverage at this time. four significant nonbanking acquisitions. The ac- However, in my judgment, conservatively-manquisition of Southwest, even absent any commit- aged bank holding companies without significant ment by Applicant to inject capital into Southwest, debt should not, because of this policy, be denied would further divert its resources away from opportunities for expansion of which they have not Bank's possible future needs and would require previously availed themselves. The Board apa significant increase in Applicant's debt. Such parently chooses to apply its so-called "go slow" diversion and increase in debt constitute significant policy across the board without discriminating adverse effects of the proposed affiliation which between leveraged and non-leveraged holding are not outweighed, at this time and under these companies in order to avoid confusion in the circumstances, in the Board's judgment, by any industry as to the scope of the policy. In my view, benefits to the public that can reasonably be ex- it is our responsibility to examine each holding pected to be produced by the affiliation. company's application on a case by case basis and Based upon the foregoing and other consid- to acknowledge differences among non-leveraged erations reflected in the record, the Board is unable and leveraged holding companies. Those nonto determine, under section 4(c)(8) of the Act, that leveraged holding companies whose subsidiaries the proposed affiliation can reasonably be expected are in sound condition should not be prohibited to produce benefits to the public that outweigh from undertaking additional burdens on their repossible adverse effects. Accordingly, the appli- sources, and I do not join the Board in imposing cation is hereby denied. such a requirement. By order of the Board of Governors, effective November 4, 1974. BANKSHARES OF INDIANA, INC. Voting for this action: Chairman Burns and Governors MERRILLVILLE, INDIANA Mitchell, Bucher, Holland, Wallich, and Coldwell. Absent and ORDER DENYING ACQUISITION OF GOODWIN not voting: Governor Sheehan. (Signed) THEODORE E. ALLISON, BROTHERS LEASING, INC. Bankshares of Indiana, Inc., Merrillville, In- [SEAL] Secretary of the Board. diana, a bank holding company within the meaning of the Bank Holding Company Act, has applied CONCURRING STATEMENT OF for the Board's approval, under Section 4(c)(8) GOVERNOR COLDWELL1 of the Act and § 225.4(b)(2) of the Board's Regulation Y, to acquire1 all of the assets of Goodwin I concur in the Board's denial of the application Brothers Leasing, Inc., Lexington, Kentucky, a of American Fletcher Corporation to acquire company that engages in the activities of fullshares of Southwest Savings and Loan Associapayout leasing of real and personal property and tion. In my judgment, American Fletcher Corcommercial financing. Such activities have been poration, at this time, should avoid the increase determined by the Board to be closely related to in leverage contemplated by that application. banking (12 CFR 225.4(a)(1) and (6) (a) and (b)). Notice of the application, affording opportunity 18See Order of June 29, 1973, denying application of Chemical New York Corporation to acquire CNA Nuclear Leasing, Inc., 59 Federal Reserve BULLETIN 698, 699 (1973), 38 Fed. Reg. 18407, 18408 (July 10, 1973). Governor Sheehan did not participate in the vote on this ^pon acquisition of Company, Applicant proposes to action. He participated, however, in preliminary Board discus- transfer the assets and liabilities of Company to a whollysions of the application and played a principal role in formu- owned operating subsidiary of Applicant's banking subsidiary lating the position reflected in this concurring statement. (See 12 CFR 7.7376 and 7.7380). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 873 for interested persons to submit comments and Bank's loans in Company's service area indicate views on the public interest factors, has been duly that Bank and Company are only marginal compublished (39 Federal Register 26786). The time petitors. The Board finds that overall competitive for filing comments and views has expired, and considerations with regard to commercial finance the Board has considered the application and all loans are consistent with approval of the applicacomments and views received in light of the public tion. interest factors set forth in Section 4(c)(8) of the In order to approve the subject application § Act (12 U.S.C. 1843(c)(8)). 4(c)(8) of the Act requires the Board to findithat Applicant controls one bank, Bank of Indiana Applicant's acquisition of Company can reasona- (N.A.) ("Bank"), with deposits of $155 million, bly be expected to produce benefits to the public which represents about 1 per cent of the total such as greater convenience, increased competideposits in commercial banks in Indiana. Appli- tion, or gains in efficiency that outweight possible cant is the 15th largest banking organization in adverse effects such as undue concentration of the State.2 resources, decreased or unfair competition, con- Company, organized in 1957, has total assets flicts of interest, or unsound banking practices. In of $7.2 million and total lease receivables of $5.7 applying this test the Board finds that this applicamillion. Company is primarily engaged in leasing, tion should be denied. on a full-payout basis, personal property.3 Com- Over the past few years Company has not had pany leases construction equipment, restaurant and a significant increase in its gross receivables. Durgrocery equipment, furniture and fixtures, vehicles ing the same period, Company's earnings have and dairy cows. With offices in Lexington and been uneven and recently have decreased. Further, Louisville, Kentucky, and in Nashville and Mem- while Company appears to be conservatively capiphis, Tennessee, Company serves portions of talized for a leasing company, its cost of funds Tennessee, Kentucky, Ohio, Indiana, West Vir- has been high. Upon acquisition by Applicant, ginia, Georgia, Alabama, Mississippi and Ar- Company would be transferred to Bank and Bank kansas. Company competes with numerous na- would provide funds to Company at a lower rate. tional and regional lessors and is not viewed as The Board has on numerous occasions stated dominant in any of the markets it serves. Applicant that one of the primary purposes of a holding does not engage in any leasing activity directly company is to serve as a source of financial or indirectly and there is no evidence in the record strength for its subsidiary banks. Applicant has that, absent this proposal, Applicant would be experienced significant growth in its assets over likely to engage de novo in leasing operations in the last few years and this growth has not been the areas served by Company. Furthermore, ac- accompanied by a concomitant increase in its quisition of Company would not give Applicant equity base. Applicant's overall capital position a dominant position in any relevant market. On in relation to its total assets has improved somethe basis of these and other facts of record, it what recently; however, it is the Board's judgment appears that no substantial amount of existing or that further augmentation is needed. While acquipotential competition in personal or real property sition of Company would initially improve Bank's leasing would be eliminated by consumption of capital position somewhat, such improvement this proposal. would be only temporary and it appears that Company also engages in commercial lending thereafter Applicant would be called upon to deactivities incidental to its leasing operations and vote significant resources to Company. The Board in 1973, Company had commercial finance re- is of the view that any additional funds should ceivables of $762,000. This activity is primarily be used to strengthen Bank rather than be diverted conducted from the Lexington office and is en- to expand or support Company's leasing activities. gaged in for a limited number of customers. Com- Accordingly, in the Board's judgment, this propany is a relatively minor competitive factor in posal could detract from Applicant's overall fithe commercial lending market it serves. Company nancial condition and reduce Applicant's ability does not derive any of its commercial loans from to provide additional financial support to its sub- Bank's market area and the amount and size of sidiary bank. In cases where a banking organization has experienced significant growth in assets without a concomitant increase in its capital ac- 2 Banking data are as of December 31, 1973. counts, the Board, under current economic and 3 Company also presently engages in leasing real property financial conditions, gives additional weight to on a full-payout basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 874 FEDERAL RESERVE BULLETIN • DECEMBER 1974 considerations of whether proposals that would finance contracts from retailers; and providing data utilize funds for further expansion rather than for processing services, including computerized genimprovement of the organization's capital position eral accounting services, computerized billing serare consistent with the public interest standard of vices, and computerized delinquent list prepara- § 4(c)(8) of the Act. Under the circumstances of tion, and the use of computer time, to its subsidithis case, the Board does not regard this proposal aries and other consumer credit companies. as being in the public interest. While Applicant Notice of the application, affording opportunity proposes, upon acquiring Company, to open a new for interested persons to submit comments and office to serve northwestern Indiana and to serve views on the public interest factors, has been duly smaller customers, it is the Board's view that such published (39 Federal Register 11223 (March 26, benefits to the public do not outweigh the possible 1974)). The time for filing comments and views adverse financial effects connected with this pro- has expired; and the Board has considered all posal. comments received in light of the public interest Based upon the foregoing and other consid- factors set forth in § 4(c)(8) of the Act (12 U.S.C. erations reflected in the record, the Board has 1843(c)(8)). determined, in accordance with the provisions of The Board, by Order of January 30, 1974,1 § 4(c)(8), that the possible adverse effects of denied an application by Applicant to acquire consummation of the proposal are not outweighed shares of Dial. by reasonably expected benefits to the public and The possible adverse effects of the first applicathat the application should be, and hereby is, tion are also present in the instant application. The denied. instant application differs from the earlier applica- By order of the Board of Governors, effective tion principally in that it contains a proposal to November 19, 1974. lower to 30 per cent the maximum annual percentage rate charged by Dial for new loans. Such Voting for this action: Vice Chairman Mitchell and Govera rate reduction affects less than 7 per cent of nors Sheehan, Bucher, Holland, and Wallich. Absent and not voting: Chairman Burns. Dial's receivables and would benefit only certain Board action was taken before Governor Coldwell was a customers of Dial. Although the Board regards rate board member. reductions in the consumer finance industry as (Signed) THEODORE E. ALLISON, constituting a public benefit, the Board finds that [SEAL] Secretary of the Board. the aggregate public benefits that may reasonably be expected from the affiliation of Applicant and THE CHASE MANHATTAN CORPORATION, Dial do not outweigh the possible adverse effects NEW YORK, NEW YORK of such an affiliation which were enumerated in the Board's order of January 30, 1974. ORDER DENYING ACQUISITION OF DIAL Accordingly, based upon the foregoing and FINANCIAL CORPORATION other considerations reflected in the record, and The Chase Manhattan Corporation, New York, for the reasons stated herein and in the Board's New York, a bank holding company within the order of January 30, 1974, which are hereby meaning of the Bank Holding Company Act of incorporated by reference herein, the application 1956, has applied for the Board's approval, under should be, and hereby is, denied. § 4(c)(8) of the Act and § 225.4(b)(2) of the By order of the Board of Governors, effective Board's Regulation Y, to acquire all of the voting October 31, 1974. shares of Dial Financial Corporation, Des Moines, Iowa ("Dial"). Dial through its subsidiaries en- Voting for this action: Chairman Burns and Governors Mitchell, Bucher, Holland, Wallich, and Coldwell. Absent and gages in the activities of making direct consumer not voting: Governor Sheehan. installment loans, secured and unsecured, to indi- (Signed) THEODORE E. ALLISON, viduals (in most instances, by direct customer [SEAL] Secretary of the Board. contact, in some instances, by mail); selling credit life, and credit health and accident insurance policies to those individuals; underwriting (in Missouri only), or re-insurance of, such insurance; selling to those individuals insurance on property (other than automobiles) in which a subsidiary of Dial 1 39 Fed. Reg. 4814 (February 7, 1974); 60 Federal Reserve has a security interest; purchasing installment sales BULLETIN 142 (1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 875 AMERICAN SECURITY AND TRUST of Leesburg, Leesburg, Virginia ("Loudon") COMPANY AND AMERICAN SECURITY, which continued until November 15, 1962. CORPORATION, WASHINGTON, D.C. 5. The Company acquired stock control on August 20, 1963 of Fairfax County National Bank, Falls Church, Virginia ("FCNB") which has con- DETERMINATION OF VIOLATION OF THE BANK tinued through the filing of the Recommended HOLDING COMPANY ACT Decision. By letter dated December 10, 1971, The Riggs 6. The Company acquired stock control on May National Bank ("Riggs"), Washington, D.C., re- 26, 1969 of University National Bank, Rockville, quested that the Board initiate a proceeding under Maryland ("UNB") which continued until 1972. § 5(b) of the Bank Holding Company Act, as 7. The Company was an unapproved bank amended (12 U.S.C. 1841 et. seq.) ("Act") to holding company in violation of section 3(a)(1) examine the relationships between American Seof the Act having unlawful stock control of the curity and Trust Company ("AS&T"), Washingfollowing banks for the following periods: ton, D.C., American Security Corporation (a) October 25-November 15, 1962, AS&T and ("ASC"), Washington, D.C. and various subur- Loudon. ban Maryland and Virginia banks. By Order dated (b) August 20, 1963-December 31, 1970, May 18, 1972, the Board, pursuant to the Riggs AS&T and FCNB. request, directed that a formal hearing be held (c) May 26, 1969-December 31, 1970, AS&T, before a designated Administrative Law Judge FCNB and UNB. ("Administrative Law Judge") (37 Federal Reg- 8. The unapproved bank holding company also ister 10479). In addition to the parties designated acquired more than 5 per cent of the shares of above, the Virginia Bankers Association sought these banks without the approval of the Board in and was granted permission to participate as an violation of sections 3(a)(3) and 3(d) of the Act observer in the proceedings. and held these shares during the following periods: On May 23, 1972, notice was issued for a (a) June 2, 1964-September 1, 1965, Loudon. pre-hearing conference; pre-hearing conferences (b) June 15, 1964-December 31, 1970, UNB. were held on various dates from June 23, 1972 (c) July 5, 1968-July 31, 1970, First National through March 30, 1973. Following the pre-hear- Bank of Arlington, Arlington, Virginia (and its ing conferences, and discovery procedures, a successors, Suburban National Bank of Arlinghearing was held in Washington, D.C. on April ton). 13, 1973. A substantial record was developed The Board, having considered the exceptions through depositions of various individuals and taken to the Recommended Decision by the parties exhibits of the parties to the proceedings. The and the entire record, and having determined that pre-hearing conferences, the discovery and the the Administrative Law Judge's findings of fact, hearing were conducted in accordance with the conclusions and recommendations, as modified Board's Rules of Practice for Formal Hearings (12 and supplemented herein, should be adopted as CFR 263).1 the findings, conclusions, and order of the Board, In a Recommended Decision, the Administranow makes its findings as to the facts, its conclutive Law Judge concluded that the evidence supsions drawn therefrom, and its order. ported the following findings of fact and law: On January 16, 1957, AS&T caused ASC to 1. The stapled stockholders of AS&T/ASC be incorporated under the laws of the District of constituted a Company within the definition of the Columbia. In December, 1957, AS&T conveyed Act. to ASC its banking premises, its real estate, its 2. The Company had stock control of AS&T insurance brokerage and travel departments, stock from December 1957 to December 31, 1970. in Security Storage Company and $700,000 in 3. The Company never received Board approval cash in exchange for all of ASC's stock and some to become a bank holding company. secured notes. ASC's 500,000 shares of capital 4. The Company acquired stock control on stock were distributed, share for share, to the October 25, 1962 of The Loudon National Bank shareholders of AS&T, with the result that each shareholder of AS&T became a like shareholder of ASC. The ASC charter provides that no ASC shares may be transferred unless an equal number 1 Board counsel participated in the hearing but did not of AS&T shares are concomitantly transferred to participate in or advise as to the Board's decision in this matter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 876 FEDERAL RESERVE BULLETIN • DECEMBER 1974 the same transferee. In fact, the stock of AS&T the definition of "company", but did not choose and ASC is printed on a single sheet of paper to do so. This is especially significant when conwhich can be separated only by cutting them apart; sidered in light of § 4(b) of the Act which exthis relationship between the shares is referred to pressly concerns stock stapling. The inclusion as "stapling".2 elsewhere within the Act of a stock stapling pro- The net effect of this stapling arrangement has vision dispels the argument that Congress either been and continues to be that AS&T and ASC overlooked or could not be expected to include have identical shareholders. Every additional issue specifically stock stapling within § 2(b). Congress of AS&T stock has been accompanied by a corre- was attempting to control concrete legal entities sponding issue, share for share, of ASC stock. through its definition of company, and in fact The stock is traded on the over-the-counter market Congress specifically chose not to cover one type only in equal units of both companies. The stock of entity which involved voluntary group action, is widely held among approximately 4,000 holders a partnership. The constructive company created with no known holder owning as much as 5 per by stock stapling is not such a concrete entity. cent of the total outstanding stock. The Administrative Law Judge's constructive Almost all of the violations cited in the Recom- company does not fit within the definition of mended Decision are founded on the conclusion "corporation", "business trust" or "other trust". that the stapled stockholders of AS&T/ASC were These terms represent entities with recognizable a "company" within the definition of that term legal formalities, powers, members amd other found in § 2(b) of the Act.3 Under that theory properties. "Association" by itself could arguably the constructive company owned one bank, include a group of shareholders. To determine its AS&T, and when it directly or indirectly owned, meaning within the statute, "association" must be controlled or held with the power to vote 25 per read in conjunction with the series of terms in centum or more of the voting shares of any other which it is included. Such a reading compels an bank, without prior Board approval, it became a understanding of "association" not as a group of multi-bank holding company and violated the Act. individuals but as a structured entity. "Similar The 1970 Amendments to the Act (regulating organizations", by its very reference to the specione-bank holding companies) became effective on fically enumerated entities in the series, also con- January 1, 1971. On September 20, 1971, the notes a more formal structure for the controlled Board adopted a regulation (§ 225.2(a) of Regula- entities than is present in stock stapling. The 1956 tion Y) establishing a conclusive presumption of Act was obviously not intended to cover every control in the case of stock-stapling arrangements instance of bank control and does not include which would require that AS&T and ASC be within its definition of company, a constructive considered subsidiaries of a constructive company company formed by a stock stapled relationship. consisting of the holders of the stapled stock. The The purpose of the 1970 Amendments was to Recommended Decision has the impact of apply- increase the scope of regulation of bank control. ing the standards of that regulation, adopted in The newly added class to be regulated was, of 1971, to the facts at the creation of ASC in 1957. course, one-bank holding companies, but other To determine whether a stock stapling arrange- control devices were also included. Individual ment falls within the meaning of "association" control was expressly considered and a decision as used in § 2(b) of the Act prior to the 1970 made not to regulate it.4 Section 2(b) was amended Amendments, the legislative intent, as discerned through the inclusion of partnerships, an expansion from the Act as a whole and its legislative history beyond the strict entity concept of "company" must be considered. It is clear that Congress could into an area of individual joint action. The incluhave explicitly provided for stock stapling within sion of "partnerships" indicated an extension of the definition of "company" to include groups of individuals, loosely or tightly formed to hold bank stock. This addition indicates a broadening of the 2 U.S.C. 12 U.S.C. 336 allows conditioning the transfer legislative intent such that stock stapled relationof nonbanking company stock upon the transfer of bank stock. 3 Section 2(b) of the 1956 Act defines company as "any ships, although not specifically enumerated, fall corporation, business trust, association, or similar organization within the regulatory confines of the 1970 Act. . . ." The 1966 Amendments added to that definition, after "organization," "or any other trust unless by its terms it must terminate within twenty-five years. . ." Unenumerated, but regulated entities, were those "similar" to corporations, busi- 4S 3823 (Brooke Bill) made express provision for individual ness trusts, associations or long term trusts. control. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 877 Section 2(a)(2)(A) was significantly amended to the outstanding shares of either UNB or FCNB. prohibit action by individuals on behalf of a As of November, 1970, ASC owned 40.8 per cent "company". The amended section 2(a)(2)(A) of the outstanding shares of UNB and 24.3 per probably covers the stock stapling prohibition cent of the outstanding shares of FCNB. After without the necessity of further provision through experiencing some difficulty in attempting to purrulemaking. The issue left vague by section chase additional UNB stock, ASC turned its at- 2(a)(2)(A) is whether the nonbank stapled com- tention to FCNB. As of December 1, 1970, ASC pany acts "through one or more other persons" directly owned in excess of 41 per cent of the (i.e. its joint stockholders) to control another outstanding shares of UNB and 24.33 per cent of company or bank.5 The uncertainty of inclusion the outstanding shares of FCNB, needing only 396 of stock stapled relationships led the Board, after additional shares to own 25 per cent of FCNB. the expansion of its authority under the 1970 As a result of a concerted campaign by ASC to Amendments, to issue, under its rulemaking au- acquire shares of FCNB, shares of FCNB were thority of section 5(b), the stock stapling restric- received by Alex Brown & Co., Washington, tions of section 225.2(a) of Regulation Y. D.C., acting as broker for ASC. On December The Board was without authority prior to the 11, 1970, Alex Brown & Co. issued a confirma- 1970 Amendments to the Act to find that stock tion to ASC reflecting the purchase of 546 shares stapled shareholders form a company within the of FCNB stock for ASC, thereby giving ASC meaning of § 2(b) of the Act. Since Congress, ownership of 25.25 per cent of the outstanding in enacting the 1970 Amendments, did not provide shares of FCNB, this at a time when ASC owned for retrospective application of its legislative in- in excess of 41 per cent of the outstanding shares tent, the Board does not have the authority to apply of UNB.6 By December 16, 1970 the broker had retroactively the standards of the 1970 Amend- issued confirmation to ASC of additional purchases ments. Those violations, enumerated in the Rec- of FCNB stock, giving ASC ownership of 50.93 ommended Decision, which depend on the con- per cent of the outstanding shares of FCNB. ASC clusion of law that the stock stapling of did not reduce its direct ownership of UNB stock AS&T/ASC created a company within the defini- to below 25 per cent of the total then outstanding tion of § 2(b) of the Act, necessarily fall with until December 18, 1970. Thus, ASC acquired the Board's rejection of that conclusion. direct ownership of in excess of 25 per cent of The hearing itself and the Recommended Deci- two banks without prior Board approval. sion did develop additional facts, previously un- The consequence of these purchases is that known to the Board, concerning ASC's ownership ASC's acquisition of ownership of FCNB was in of FCNB and UNB stock. This new information violation of the Act. ASC was in compliance with centered on the details of the December 1970 the Act prior to its purchase on December 11,1970 purchases and sales of FCNB and UNB stock. of 396 shares of FCNB. ASC's purchases on The then-pending amendments to the Act pro- December 14, 1970 and December 16, 1970, dates vided that any bank holding company could not on which the broker for ASC issued confirmation acquire additional shares of any bank without prior slips to ASC, were further violations of the Act. Board approval unless the bank holding company All the evidence elicited during the hearing apowned more than 50 per cent of the outstanding pears to substantiate the Administrative Law shares of that bank. In November, 1970, ASC decided, in light of the proposed amendments to the Act, to acquire in excess of 50 per cent of 6 AS&T/ASC argue that ASC did not become owner of the shares until December 21, 1970 at which time ASC, paid the brokers for the shares and the shares were delivered to ASC. AS&T/ASC argue that ASC had no control over the shares and did not have the right to vote any of the FCNB shares 5 The original version of H.R. 6778 as introduced by until it had received and paid for them. The position of Representative Patman included in the definition of control (§ AS&T/ASC, however, ignores the provisions of the D.C. Code 2(d)(2)) "Any given person has control over a company if § 28.8-313(l)(c) which provide "Delivery to a purchaser the person directly or indirectly or acting in concert with one occurs when his broker sends him confirmation of the purchase or more persons, has the power to vote 25 per centum . . ." and § 28.8-313(2) provides, in part, "The purchaser ..." Clearly this language would have brought stock stapling, is the owner of a security held for him by his broker, but chain banking and individual control within the regulation of is not the holder except as specified in subparagraphs (b)(c) the Act. Congress expressly rejected this language making it and (e) of subsection (1) . . Thus, in this matter, since unclear, even after the broadening of the Act by the 1970 ASC is a holder within the terms of the exception, ASC is Amendments, whether stock stapling arrangements were cov- both the owner and holder of the additional shares of FCNB ered by the Act. stock as of December 11, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 878 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Judge's conclusion that these violations by ASC illegality remains as long as ASC holds its FCNB were not intentional or willful. ASC remained in stock.7 violation of the Act by its ownership of in excess Pursuant to §§ 3(a) and 5(b) of the Act, of 25 per cent of two banks without prior Board AS&T/ASC must terminate its ownership and approval through at least December 18, 1970 at control of FCNB stock as soon as possible but which time it reduced its direct ownership of the in no event later than two years from the date of outstanding shares of UNB below 25 per cent. this order. Subsequent to December 31, 1970 it divested to By order of the Board of Governors, effective below 5 per cent. November 12, 1974. ASC thus acquired its ownership of FCNB in Voting for this action: Vice Chairman Mitchell and Governors violation of the Act in December, 1970, prior to Sheehan, Bucher, Holland, and Coldwell. Absent and not voting: Chairman Burns and Governor Wallich. the operation of the 1970 Amendments to the Act. The operation of the 1970 Amendments to the Act (Signed) THEODORE E. ALLISON, cannot be construed to legitimize this prior illegal [SEAL] Secretary of the Board. acquisition. Thus ASC did not become a grand- 7 Although the Board did not find it necessary to reach the fathered one bank holding company by operation issue, this conclusion derives additional support from the of the 1970 Amendments to the Act. Divestment Administrative Law Judge's finding that as of December 31, of its UNB shares does not cure the illegality of 1970 ASC directly and indirectly through its officers controlled more than 25 per cent of UNB stock. It thus could not have ASC's purchase of FCNB stock. The taint of that qualified as a one-bank holding company. ORDERS NOT PRINTED IN THIS ISSUE During November 1974, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation First West Virginia Bancorp, The Bank of War wood, National 11/20/74 39 F.R. 41781 Inc., Wheeling, West Virginia Association, and Community 12/2/74 Savings Bank, National Association, both in Wheeling, West Virginia Second Bancorporation, Second National Bank, 11/18/74 39 F.R. 41311 Eldora, Iowa Eldora, Iowa 11/26/74 Wisdom Holding Corporation, The Bank of Bunker, 11/20/74 39 F.R. 41782 Salem, Missouri Bunker, Missouri, and 12/2/74 Dent County Bank, Salem, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 879 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 County National Bancorporation, First National Bank of 11/20/74 39 F.R> 41414 Clayton, Missouri Arnold, Arnold, Missouri 11/27/74 Mercantile Bancorporation, Inc., Salisbury Savings Bank, 11/19/74 39 F.R. 41311 St. Louis, Missouri Salisbury, Missouri 11/26/74 The Jacobus Company and Heritage Bank of Mt. 11/15/74 39 F.R. 41219 Inland Financial Corporation, Pleasant, Mt. Pleasant, 11/25/74 both of Milwaukee, Wisconsin Wisconsin ORDERS UNDER SECTION 4(a)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation D.H. Baldwin Company, C.C. Fletcher Mortgage 11/15/74 39 F.R. 41307 Cincinnati, Ohio Company, Cincinnati, Ohio 11/26/74 Landmark Banking Corporation Robert Wilmoth Associates, 11/18/74 39 F.R. 41310 of Florida, Inc., Fort Inc., Palm Beach, Florida 11/26/74 Lauderdale, Florida The Jacobus Company and Providing management 11/15/74 39 F.R. 41309 Inland Financial Corporation, consulting advice to 11/26/74 both of Milwaukee, Wisconsin nonaffiliated banks United Carolina Bancshares Providing management 11/20/74 39 F.R. 41586 Corporation, Whiteville, consulting advice to 11/29/74 North Carolina nonaffiliated through UCB Management Services Division ORDERS ISSUED BY FEDERAL RESERVE BANKS During October and November 1974, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Reserve Effective Register Applicant Bank(s) Bank date citation Commercial Security Ban- Bank of Salt Lake, San Francisco 11/29/74 39 F.R. 43127 corporation, Ogden, Utah Salt Lake City, 12/10/74 Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 880 FEDERAL RESERVE BULLETIN • DECEMBER 1974 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Federal Nonbanking Company Reserve Effective Register Applicant (or activity) Bank date citation Farmers & Merchants Agency, Farmers and Merchants Minneapolis 11/25/74 39 F.R. 42952 Inc., Pierz, Minnesota State Bank of Pierz, 12/9/74 Pierz, Minnesota First National Charter Cor- First National Bank of Kansas City 10/22/74 39 F.R. 39107 poration, Kansas City, Cassville, Cassville, 11/5/74 Missouri Missouri ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Federal Nonbanking Company Reserve Effective Register Applicant (or activity) Bank date citation Independent Bank Corporation, First State Bank of Chicago 11/12/74 39 F.R. 41308 Ionia, Iowa Newago, New ago, Iowa 11/26/74 Virginia National Bancshares, General Finance Company Richmond 11/15/74 39 F.R. 41312 Inc., Norfolk, Virginia and City Auto Finance, 11/26/74 Inc., both of High Point, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

881 Announcements PROPOSED LEGISLATION RE FOREIGN BANKS influence of Federal Reserve monetary policy; the The Board of Governors on December 3, 1974, fact that the Federal Government can play only sent to Congress proposed legislation to establish a limited role in foreign bank operations in the a national policy on foreign banks operating in United States, although this has important implithe United States and a system of Federal regula- cations for U.S. foreign relations. tion and supervision of those operations. The proposed legislation would standardize the The proposed legislation would standardize the status of foreign banks and their branches and status of foreign banks operating in the United agencies, on the basis of nondiscriminatory na- States and place them basically under the same tional treatment aimed at providing foreign banks rules and regulations that must be observed by with the same opportunities to conduct activities domestic banks. in this country that are available to domestic Foreign banking in the United States has grown banking and subjecting them to the same rules. from $6.5 billion in assets in 1966 to $38 billion The legislation would also provide for a Federal as of the end of 1973. There are currently more role in licensing and supervising foreign bank than 60 foreign banks with U.S. operations. In operations. The Comptroller of the Currency explaining the basic reasons for recommending the would issue licenses for all foreign banking faciliadoption of the proposed legislation, the Board ties in the United States upon approval of the included the following statement in its transmittal Secretary of the Treasury. The Comptroller would to Congress: also supervise foreign-owned national banks and Federally insured branches of foreign banks. The Foreign banks have in recent years been coming to the Federal Reserve would exercise supervisory au- United States in increasing numbers and operating thority under the Federal Reserve Act and the Bank through branches, agencies, and subsidiary banks. The scale and nature of foreign bank activities through these Holding Company Act. facilities are now significant in terms of competition The Federal Deposit Insurance Corporation within the banking industry and of the functioning of would be required to submit proposals to extend money and credit markets. This movement by foreign its deposit insurance, now covering subsidiaries banks into the United States is part of the broader development of multinational banking in which United of foreign banks, to branches and agencies. States banks are deeply involved through their extensive The proposed legislation culminates months of operations overseas. The multinational banking system extensive work by a special Federal Reserve that has evolved as a result of the establishment by the Steering Committee on International Banking world's leading commercial banks of banking and financing facilities on a global basis is now a key element Regulation headed by George W. Mitchell, Vice in the world's financial system. Its functioning has Chairman of the Board. far-reaching ramifications for international financial The main provisions of the proposal are as policy and for the economic and financial policies of follows: individual nations. 1. Coverage: The Bank Holding Company Act At present, foreign banks operating in this would be redefined to include branches and agencies— country do so on terms determined almost exclu- as well as subsidiaries which are presently covered—of sively by State laws. Among the conditions that foreign banks, bringing nearly all foreign banks with have resulted from this are the following: depository and lending functions in the United States under the Bank Holding Company Act. A prohibition of foreign banking in some States 2. Equality of Treatment: In addition to bringing and its permission in others; multistate banking virtually all foreign bank operations in the United States by foreign-owned organizations; lack of conunder the Bank Holding Company Act, it would provide straints on nonbanking activities by foreign banks; equality of treatment with domestic banking by facilithe fact that few foreign banks are members of tating foreign ownership of national banks, by enabling the Federal Reserve System, although they are for licensing of a Federally chartered branch, by permitting foreign banks to own Edge Act Corporations, and by the most part large banks (all but a few large requiring Federal Reserve membership in most instances domestic banks are members), thus excluding a and FDIC insurance of deposits in branches and agengrowing sector of money and credit from the direct cies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 882 FEDERAL RESERVE BULLETIN • DECEMBER 1974 3. Entry: The National Banking Act would be other Federal banking agencies with respect to banks amended to permit up to half of the directors of a under their jurisdiction. national bank—all of whose directors must now be U.S. If a bank does decide to engage in gold-related citizens—to be foreigners. The Comptroller would also activities, preferably it should act only on a consignment be empowered to license branches of foreign banks to basis or otherwise as agent. conduct a banking business in any State on the same The risk inherent in gold transactions is such that basis as a national bank. any State member bank considering acting as principal with respect to gold transactions should give advance 4. Edge Corporations: The section of the Federal notice to the Federal Reserve Bank of its district. The Reserve Act dealing with establishment of Edge Act advance notice should contain information relative to Corporations—subsidiaries of member banks in the experience of personnel, services to be provided, antic- United States that deal with foreign financial transacipated inventories and positions, safekeeping facilities, tions—would be amended to allow foreign banks to insurance coverages, audit procedures, and anticipated conduct foreign business throughout the United States impact on earnings. on the same basis as domestic banks, without majority Banks should not engage in the business of issuing control by U.S. citizens. receipts for gold without considering the implications 5. Federal Reserve Membership: Membership would of securities laws; and any gold for which a bank issues be required for branches, agencies, and subsidiaries of any form of receipt must be physically held on hand a foreign bank where the parent foreign bank had at all times and under strict safeguards. Moreover, worldwide assets exceeding $500 million. obligations payable in gold or its equivalent are still unenforceable (Public Resolution of June 5, 1933, 31 6. Grandfathering: Multistate banking operations of U.S.C. 463). foreign banks, in operation as of the date of introduction As with any commodity loan, it is anticipated that of the legislation, would be permanently grandfathered banks will carefully consider such matters as adequacy and could be expanded where existing, in accordance of margins on loans collateralized by gold, precautions with State law. Nonbanking interests of foreign banks to assure authenticity and safe custody of gold held as covered by the legislation would also be permanently collateral, and total risk exposure from gold-related grandfathered if in operation as of the date of introduc- loans. Moreover, gold-related loans should be considtion of the legislation. This includes securities affiliates ered nonproductive credits unless extended for comof foreign banks in the United States. mercial or industrial purposes. If a bank should decide to offer gold for sale, it should carefully avoid excessive or misleading promotions that PARTICIPATION IN GOLD TRANSACTIONS could lead to unrealized expectations by bank clients and adversely affect public confidence in a particular The Board of Governors on December 9, 1974, bank or the banking system. released information relating to the lifting of the Examiners will pay strict attention to the relevant ban on private ownership of gold. accounting practices of banks and recordkeeping for accounts of customers. Any gold owned should be The text of a letter, which was sent to all State shown on financial statements under "other assets," and member banks by the Presidents of the Federal any hedging futures contracts should be shown as a Reserve Banks, relating to questions of banking memorandum item. It is anticipated that a bank would practice in gold-related transactions follows: revalue accounts at least monthly to reflect current market values. Public Law 93-373 provides that on December 31, During examinations of State member banks, exam- 1974, the ban on private ownership of gold will end. iners will review closely a bank's total involvement in After that, U.S. citizens may own gold and trade in gold-related transactions to assure that individual banks it as they might any other commodity. National banks and the banking system are not exposed to undue risk. possess statutory authority to buy and sell "exchange, Among other considerations, examiners will be concoin, and bullion," and some State laws contain similar cerned with management's expertise in this area, risk provisions with respect to State-chartered banks. The undertaken in relation to the bank's equity capital, and Office of the Comptroller of the Currency has deter- the needs of customers. An undue concentration of gold mined that gold will not be acceptable as bullion unless loans, as with any imprudent involvement in gold it has a fineness of 0.900 or better. transactions, could constitute an unsafe or unsound For the past 41 years, U.S. citizens have been able banking practice subject to action under the cease-andto hold gold only under U.S. Treasury license. During desist provisions of the Financial Institutions Supervisthis period, private individuals and banks have had ory Act of 1966. Our examiners are instructed to be vigorous in countering any manifestation of bank specnegligible experience with gold. Gold is not legal ulation in gold. tender. Rather, it is a highly speculative commodity, subject to widely fluctuating prices. In light of these circumstances, State member banks will wish to proceed In addition, the Board issued the following cautiously, should they decide to provide gold-related statement regarding the treatment of gold by the services to customers. Federal Reserve Banks: The Federal Reserve System believes that the following information will be useful to State member banks The Board has received numerous inquiries from in the event that they decide to participate in gold member banks relating to the repeal of the ban on transactions. Similar information is being issued by ownership of gold by U.S. citizens. A statement on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 883 the subject is being sent to all State member banks Subsequently on December 6 the Board of similar to statements being sent to national banks by Governors established a new category of long-term the Comptroller of the Currency and insured nonmember consumer time deposit, to be known as Investment banks by the Federal Deposit Insurance Corporation. In addition, there are listed below questions and answers Certificates, on which member banks may pay up that affect member banks and relate to certain other to IV2 per cent annual interest. responsibilities of the Federal Reserve. The Board's action was intended to permit 1. May gold in the form of coins or bullion be member banks to offer longer-term time deposits counted as vault cash in order to satisfy reserve requireat more competitive rates of interest. The action ments? No. Section 19(c) of the Federal Reserve Act requires that reserve balances be satisfied either by a amended Regulation Q—interest on deposits—efbalance maintained at the Federal Reserve Bank or by fective December 23, 1974. vault cash, consisting of United States currency and Similar actions to permit nonmember commercoin. Gold in bullion form is not United States currency. cial banks and thrift institutions under their super- Gold coins are not considered legal tender by the Department of the Treasury and, therefore, are not vision to pay more competitive rates on longer- United States currency or coin. term time deposits have been announced by the 2. Will the Federal Reserve Banks perform services Federal Deposit Insurance Corporation and the for member banks with respect to gold, such as safe- Federal Home Loan Bank Board. keeping or assaying? No. The principal features of the new instrument for 3. Will a Federal Reserve Bank accept gold as collateral for an advance to a member bank under § 10(b) time deposits of less than $100,000 issued by of the Federal Reserve Act? No. member banks are: 1. Investment Certificates will mature in not less AMENDMENTS TO REGULATION Q than 6 years. The Board of Governors on November 26, 1974, 2. They may be sold in amounts of $1,000 or amended its Regulation Q to permit governmental more. units to hold savings deposits at member commer- 3. The maximum interest rate is IV2 per cent cial banks. The action was taken in conjunction per annum. with new legislation, effective November 27, pro- 4. Investment Certificates may be issued in viding deposit insurance for public time and sav- negotiable or in nonnegotiable form. ings deposits up to $100,000. —Negotiable Investment Certificates may not be re- Additionally, the Board created a new category deemed prior to maturity, in any circumstances. However, they may be used as collateral for loans. When of time deposit, under Regulation Q, for governan Investment Certificate is used as loan collateral the mental bodies. The ceiling rates for public deposits interest rate on the loan must be at least 2 percentage at member banks are: points higher than the interest rate on the certificate. Passbook savings deposits 5 per cent Issuing banks may arrange sales between holders and prospective buyers of Investment Certificates, but the Other time deposits bank may not purchase the certificates for its own under $100,000 ll/i per cent account. Issuing banks must give notice—that the ne- The rate ceiling on time deposits of govern- gotiable Investment Certificates are not redeemable prior mental bodies (as distinct from passbook savings) to maturity—in a separate disclosure statement, in advertising, and on the face of the instrument itself. will be maintained at the highest permissible rate —Nonnegotiable Investment Certificates may be rethat can be paid on time deposits under $100,000 deemed prior to maturity, under the Board's existing by Federally insured commercial banks, mutual rules for early withdrawal of time deposits. savings banks, or savings and loan associations. The Board's action followed consultation with This rate is currently IV2 per cent. the Treasury Department, the FDIC, and the Savings and loan associations previously had FHLBB. authority to accept savings deposits from public In accordance with recently published rules for bodies. Extension of this authority to member rate ceilings on time deposits of governmental commercial banks will permit public bodies a units, the ceiling on such deposits will rise to 13A wider choice of deposit alternatives for public per cent as a result of the above actions by the funds. The Board also amended its definition of Federal Reserve, FDIC, and FHLBB. a savings deposit in Regulation D to conform to the action taken under Regulation Q. ELECTRONIC DISTRIBUTION OF GOVERNMENT Similar actions are being taken by the Federal PAYMENTS Deposit Insurance Corporation and the Federal Home Loan Bank Board for institutions under their The U.S. Air Force, the Department of the Treasjurisdiction. ury, and the Federal Reserve System jointly an- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 884 FEDERAL RESERVE BULLETIN • DECEMBER 1974 nounced on November 25, 1974, plans for the Force personnel in California, Georgia, Colorado, electronic distribution of Government payments. Wyoming, and part of New Mexico, beginning Under this new program, U.S. Air Force per- with the November 30, 1974, Air Force payroll. sonnel who have authorized their net pay to be Step 2—Expansion to include deposits of sent directly to the financial institution of their payroll credits to banks in the remaining areas choice will have their payroll credits distributed served by the San Francisco and Atlanta Federal electronically, beginning November 30, 1974. Reserve Districts scheduled for the first quarter of This program will replace payroll credit listings 1975. and Treasury checks currently in use, and it will Step 3—Continued expansion of the Air Force substantially reduce both the cost of making Gov- payroll project to include the remaining Federal ernment payments and the risks of loss by theft Reserve offices, in an effort to provide nationwide or fraud of payments to Air Force members. At coverage as soon as possible. The pace and extent the same time, delivery of payments will be faster. of this expansion will depend upon technical ca- Other Government agencies are expected to pabilities available at each Federal Reserve office participate in similar programs leading eventually and the financial organizations involved. to a nationwide electronic funds transfer system Once fully implemented, the electronic distrifor the Federal Government. The other military bution program for Air Force payroll deposits will services are expected to follow the Air Force in include payments for all of the approximately implementing a direct deposit electronic program. 280,000 Air Force personnel who have volun- Of greater significance, in terms of the volume teered to participate in the Air Force "Checks to of checks that will be converted to electronic Financial Organizations" program plus others who transmission, is the anticipated handling of a large wish to participate in the electronic pay deposit number of social security and supplemental se- program. In the "Checks to Financial Organicurity income payments under a project recently zations" program, payroll credits in the form of announced jointly by the Treasury, the Social checks or other payment media are delivered to Security Administration, and the Federal Reserve. the participant's financial organization, instead of to the participant. The feasibility of the electronic distribution program was successfully demonstrated in tests conducted in September 1973. The Air Force OVERSEAS BRANCHES OF MEMBER BANKS: ASSETS AND LIABILITIES Accounting and Finance Center in Denver simulated the distribution, on two consecutive payroll Total assets of the overseas branches of member dates, of some 20,000 payroll deposits. The simu- banks increased by $40.6 billion, or 52 per cent, lated payments involved the use of the Federal during 1973 to a total of $118 billion, according Reserve System facilities to distribute payroll in- to a Federal Reserve announcement that released formation to Federal Reserve offices at Atlanta, data showing balance sheet items of overseas Denver, and Los Angeles. There, the information branches at the beginning and end of the year. was sorted by computer, and simulated payments At the end of 1973, 694 branches were in operation were made for the participants' accounts at 189 in foreign countries and overseas territories, an commercial banks. increase of 67 branches during the year. As a follow-up to the September 1973 tests, an The tabulations (which are available on request) expanded test program was successfully conducted show as separate items the amounts due from and during the payment dates of October 31 and No- due to other overseas branches of the same bank. vember 15, 1974. The expanded test consisted of Omitting these offshore inter-office claims, assets verifying the payroll deposits at financial organi- of the branches increased by $36.7 billion, or 51 zations in the States of California, Georgia, Colo- per cent. This growth was again principally acrado, Wyoming, and part of New Mexico. counted for by branches in Europe (particularly As a result of the success of the simulation tests, those in London) and in the Bahamas. The 1973 regular electronic distribution of pay for Air Force tabulation groups the figures for the 90 branches personnel who have authorized it can begin. Im- in the Bahamas with those for the 30 branches plementation of the program will be accomplished in the Cayman Islands because of the similarity in three steps and will take nearly a year to of their operations. Almost all of the Cayman complete. The three steps are: Island branches were established during 1973. Step 1—Distribution of the actual payroll de- Loans at overseas branches expanded by $13.8 posits to financial institutions designated by Air billion, or 38 per cent, during 1973. In addition, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 885 cash assets increased by $20 billion (67 per cent), The limit on outright holdings of bankers' acagain reflecting continued expansion of time ceptances had been increased from $125 million placements with other banks in Euro-currency to $500 million last July in light of the sharp markets. growth in outstanding acceptances over the pre- The data are derived from reports of condition vious decade—from $31A billion to $12 billion. filed at the end of the year with the Comptroller Since July, outstanding acceptances have grown of the Currency and the Federal Reserve System, sharply further, to more than $16 billion. and differ in certain respects from other statistical Also, on November 22 the Board of Governors reports covering aspects of overseas branch opera- terminated the System guarantee on acceptances tions. The assets and liabilities are payable in U.S. purchased for foreign official accounts. Suspension dollars as well as in currencies of the countries of this guarantee was announced by the Federal where the branches are located and in other foreign Reserve Bank of New York on November 8, 1974. currencies. SURVEY OF FEDERAL FUNDS BORROWING CHANGE IN DISCOUNT RATE Aggregate data from a special survey of Federal The Board of Governors approved actions by the funds borrowing by a sample of member banks directors of the Federal Reserve Banks of New during the week ended April 24, 1974, are now York and Philadelphia reducing the discount rate available. These data may be obtained on request of those banks from 8 per cent to 73A per cent, from the Banking Section, Division of Research effective December 9. and Statistics, Board of Governors of the Federal Subsequently, the Board approved similar ac- Reserve System, Washington, D.C. 20551. tions by the directors of the Federal Reserve Banks The survey, in which 45 of the 46 money market of Boston, Chicago, Dallas, and Richmond, efbanks participated, provided previously unavailfective December 10; San Francisco, effective able information regarding the composition of Fed- December 11; Cleveland, St. Louis, Minneapolis, eral funds borrowing with respect to (1) form of and Kansas City, effective December 13; and transaction (that is, repurchase agreements against Atlanta, effective December 16. At that time the U.S. Government or agency securities or other rate was 73A per cent at all Reserve Banks. forms), (2) maturity of loan, and (3) type of insti- The action was taken in view of the recent tution making the loan. In addition, figures on slackening in the demand for credit and in recogcommittments to borrow Federal funds in the funition of the lower level of market interest rates ture were obtained for the 45 banks in the sample. that has developed since last summer. The discount rate is the rate charged member PUBLISHED INTERPRETATIONS OF THE BOARD commercial banks for borrowing from their district Federal Reserve Banks. Supplement No. 22 to the looseleaf compilation of "Published Interpretations of the Board of HOLDINGS OF BANKERS' ACCEPTANCES Governors of the Federal Reserve System," con- The Federal Reserve announced on November taining the published interpretations as of June 30, 22, 1974, that the limit on outright holdings of 1974, is now available. bankers' acceptances that may be held by the ADMISSION OF STATE BANKS System has been increased from $500 million to TO MEMBERSHIP IN $1 billion. THE FEDERAL RESERVE SYSTEM The increase was initially authorized by the Federal Open Market Committee on November 11, The following banks were admitted to membership shortly after the suspension of the System's guar- in the Federal Reserve System during the period antee of acceptances purchased by the Federal November 16, 1974, through December 15, 1974: Reserve Bank of New York for foreign official accounts. This initial action provided flexibility for Tennessee possible System purchases of acceptances to insure Gallatin Commerce Union Bank a smooth market adjustment. of Sumner County At its November meeting, the FOMC decided Lawrenceburg Commerce Union Bank to retain the $1 billion limit, which was deemed of Lawrence County consistent with longer-term needs of open market Murfreesboro Commerce Union Bank operations. of Rutherford County Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Industrial Production Released for publication December 13 Industrial production declined by an estimated 2.3 per cent in November following a 0.6 per cent INDUSTRIAL PRODUCTION decline in October. At 122.0 per cent of the 1967 Seasonally adjusted, ratio scale, 1967=100 base, the total index in November was 4.3 per cent below a year earlier. Reductions in output were relatively large and widespread in all categories—consumer goods, business equipment, and industrial materials. Auto assemblies declined 16 per cent in November to an annual rate of 7.0 million units. Sales of new domestic cars, however, continued well below the reduced production level, and further output cutbacks are being made in December. Large declines also occurred in the production of other consumer durable goods in November, while output of nondurable consumer goods eased off further. Production of business equipment declined 1.1 per cent from the peak reached in October, as a number of equipment industries showed weakness. Output of construction products dropped further, reflecting the continuing weakness in the construction industry. Production of steel declined in November, in part because of the coal strike, and there were 1968 1970 1972 1974 1968 1970 1972 1974 reductions in output in most other durable and F.R. indexes, seasonally adjusted. Latest figures: November. nondurable industrial materials. Seasonally adjusted Per cent 1967 = 100 changes from- Per cent changes, annual rate Industrial production 1974 1974 Month Year ago ago Sept.r Oct.p Nov. Qi Q2 Q3 Total 125.6 124.9 122.0 -2.3 -4.3 -6.6 1.9 -.3 Products, total 123.7 123.0 121.4 -1.3 -3.1 -5.8 2.6 .6 Final products 122.8 122.6 120.9 -1.4 -2.2 -6.5 3.0 2.3 Consumer goods 129.4 128.6 126.6 -1.6 -5.2 -11.5 2.5 -.6 Durable goods 128.6 126.8 120.4 -5.0 -13.1 -26.6 14.7 -5.1 Nondurable goods 129.6 129.3 129.0 - .2 -1.9 -5.2 -2.2 3.1 Business equipment 132.3 132.4 131.0 -1.1 2.5 .6 7.2 4.0 Intermediate products .. 126.9 124.4 122.7 -1.4 -6.4 -4.6 1.2 -4.3 Construction products 127.5 123.7 120.2 -2.8 -10.1 -5.1 -2.7 -7.7 Materials 128.8 128.0 122.9 -4.0 -6.5 -6.4 -.3 -1.6 '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 87 FEDERAL RESERVE BULLETIN • DECEMBER 1974 U.S. STATISTICS—Continued A 50 Industrial production A 52 Business activity A 52 Construction A 54 Labor force, employment, and unemployment A 55 Consumer prices A 55 Wholesale prices A 56 National product and income A 58 Flow of funds INTERNATIONAL STATISTICS: A 60 U.S. balance of payments A 61 Foreign trade A 61 U.S. reserve assets A 62 U.S. gold transactions A 63 International capital transactions of the United States A 76 Open market rates A 77 Central bank rates A 77 Foreign exchange rates A 78 Gold reserves of central banks and governments TABLES PUBLISHED PERIODICALLY: A 79 Sales, revenue, profits, and dividends of large manufacturing corporations A 89 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted for seasonal variation c Corrected IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities 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 Page Sales, revenue, profits, and dividends of large manufacturing Banks and branches, number, corporations Dec. 1974 A-79 by class and State Apr. 1974 -A-89 Semiannually Flow of funds: Assets and liabilities: Banking offices: 1962-73 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 Banks Feb. 1974 A-96—A-97 Banking offices and deposits of Insured commercial banks June 1974 A-84—A-85 group banks, Dec. 31, 1973 June 1974 A-80—A-83 Member banks: July 1974 530 Calendar year June 1974 A-84—A-93 Income ratios June 1974 A-94—A-99 Banking and monetary statistics: Operating ratios Sept. 1974 A-80—A-85 1973 Mar. 1974 A-96—A-109 July 1974 A-80—A-82 Stock market credit Jan. 1974 A-96—A-97 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases Dec. 1974 A-86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS • DECEMBER 1974 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas- Period or date U.S. Govt, securities 1 Special ury u H n e d l e d r 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 f w i h c i t n a s g t e re o c 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 55 170 2,404 22,759 3,239 1945—Dec 23,708 23,708 338811 652 24,744 20,047 4,322 1950—Dec 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—De c 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—De c 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—No v 78,457 77,937 520 1,399 2,764 1.078 83,756 11,567 400 8,642 Dec 79,701 78,833 868 1,298 3,414 1.079 85,642 11,567 400 8,668 1974—Ja n 80,793 80,608 185 1,044 3,385 1,258 86,568 11,567 400 8.705 Feb 80,801 80,551 250 1,186 2,300 1,117 85,493 11,567 400 8,747 Mar 80,686 80,184 502 1,352 1,816 960 84,943 11,567 400 8,767 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. P 83,735 83,303 432 1,794 2,180 2,984 91,069 11,567 400 9,041 Nov.? 84,052 83,395 657 1,287 2,456 3,171 91,351 11,567 400 9,109 Week ending— 1974—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 2,137 2,047 91,006 11,567 400 9,027 16 83,367 82,598 769 1,744 1,875 3,288 90,716 11,567 400 9,036 23 83,472 83,472 1,322 2,553 3,396 90,958 11,567 400 9,042 30 J> 83,581 83,218 363 1,638 1 ,976 3,386 90,848 11,567 400 9,054 Nov. 6? 83,662 83,217 445 1,127 074 3,466 90,648 11,567 400 9,080 13 P 82,421 82,421 1,098 531 3,484 89,755 11,567 400 9,099 20* 83,959 83,480 479 1,367 052 2,967 91,701 11,567 400 9,118 27 P 85,212 84,076 1,136 1,481 100 2,917 92,201 11,567 400 9,128 End of month 1974—Sept 84,046 85,046 2,920 1,460 1,481 91,411 11,567 400 9,069 Oct. P 83,362 9 83,362 1,120 2,330 3,442 90,472 11,567 400 9,125 Nov.? 85,709 9 84,471 1,238 1,227 2,337 2,899 92,783 11,567 400 9,141 Wednesday 1974—Sept. 4 86,841 9 85,136 1,705 3,207 1,943 1,238 93,764 11,567 400 8,969 11 82,760 9 82,760 2,455 3,064 1,406 89,948 11,567 400 8,974 18 82,185 9 82,185 3,123 3,093 1,334 90,010 11,567 400 8,974 25 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 79,589 802 2,945 3,346 86,997 11,567 400 9.033 16 85,748 9 82,565 3,183 1,762 2,765 3,349 94,478 11,567 400 9,041 23 83,694 9 83,694 2,481 2,640 3,391 92,422 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 Nov. 6 P 84,592 9 83,253 1,339 842 2,666 3,479 91,985 11,567 400 9,075 13 p 81,175 9 81,175 625 2,618 3,379 88,013 11,567 400 9,104 20 * 83,472 9 82,325 1,147 2,535 3,584 2,913 93,075 11,567 400 9,118 27 P 86,764 9 83,948 2,816 1,756 2,113 2,922 94,385 11,567 400 9,136 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 8 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

DECEMBER 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 reserves, Other reserves Period or date Treas- with F.R. Banks Other F.R. ury F.R. liacash ac- bilities h i o n l g d s - Tr u e r a y s - F ei o g r n - Other 2,5 counts 3 ca a p n it d a l 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? 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. 340 1,772 522 5 689 2,854 28,259 6,382 34,725 1973—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 303 864 370 5 770 3,149 29,947 7,009 36,956 Nov.* Week ending— 302 3,107 371 5 802 3,502 30,416 6,823 37,239 1974—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 IS 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 29,441 7,160 36,601 9 318 838 271 5 794 3,180 30,376 7,039 37,415 16 318 1,200 271 5 843 3,285 30,202 6,254 36,456 23 313 1,341 312 5 800 3,410 30,068 6,830 36,898 30* 295 1,049 302 5 811 3,312 29,865 7,125 36,990 Nov. 6* 300 159 302 5 703 3,038 29,293 7,239 36,532 13* 300 649 512 5 781 3,060 30,274 6,573 36,847 20 P 307 1,346 303 5 788 3,174 30,049 7,069 37,118 27 P End of Month 304 3,209 411 5 718 3,685 29,266 7,069 36,335 1974—Sept. 294 787 376 5 815 3,504 29,888 7,125 37,013 Oct. P 318 1,495 626 5 799 3,303 29,634 7,118 36,752 Nov.f Wednesday 302 2,785 359 5 777 3,135 31,926 6,823 38,749 1974—Sept. 4 302 1,287 305 5 739 3,181 29,420 7,088 36,508 311 2,503 327 5 758 3,259 28,538 6,837 35,375 318 3,347 611 5 711 3,477 33,256 6,785 40,041 25 324 255 313 5 822 3,093 31,229 7,069 38,298 Oct. 2 328 179 296 5 798 3.097 26,411 7,160 33,571 9 314 629 328 5 789 3,299 33,909 7,039 40,948 16 326 393 282 5 916 3,346 31,304 6,254 37,558 23 299 079 404 5 844 3,481 30,452 6,830 37,282 30 P 307 318 5 707 3,046 31,938 7,125 39,063 Nov. 6P 312 256 272 5 763 2,997 27,022 7,239 34,261 13* 313 1,349 499 5 639 3.098 30,931 6,573 37,504 20* 327 1,315 274 5 745 3,259 31,727 7,069 38,796 21P 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 • DECEMBER 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess i Total Sea- Excess Borrow- Excess Borrow- Excess Borrow- Excess 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 14 418 96 1,011 46 1950—Dec 17,391 16,364 1,027 142 125 58 8 5 232 50 663 29 1960—Dec 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—No v 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.p 36,935 36,757 178 1,794 118 -8 502 -33 36 -163 570 113 686 Nov.P. .. 36,956 36,578 378 1,287 67 -87 257 25 12 40 568 155 450 Week ending— 1973—Nov. 7' 34,626 34,369 257 1,171 93 101 192 -53 12 -7 384 132 583 14r 34,871 34,725 146 1,521 80 -92 262 61 29 716 125 482 21 r 35,095 34,726 369 1,568 85 110 224 2 15 66 623 107 706 28 r 34,438 34,372 66 1,287 84 -56 94 -14 28 -31 541 83 624 1974—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 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. 36,601 36,656 -55 2,245 132 -26 1,245 -20 10 -127 336 118 654 16. 37,415 37,088 327 1,744 121 41 219 27 135 99 784 160 606 23. 36,456 36,615 -159 1,322 108 -101 148 -12 2 -122 509 76 663 30* 36,898 36,579 319 1,638 104 119 96 -39 11 -138 730 121 801 Nov. 6 p 36,990 36,688 302 1,127 79 -16 68 52 72 425 124 634 13P 36,532 36,333 199 1,098 70 -111 188 -86 21 -149 488 261 401 20P 36,847 36,781 66 1,367 63 -99 465 6 29 -217 495 85 378 21 v 3377,,111188 3366,,447755 664433 11,,448811 6655 2200 224433 222244 881144 112266 442244 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, $84 million. Beginning the month or week, respectively. Beginning with Jan. 1964 reserves are 1974 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

DECEMBER 1974 • MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks and Total Borweek ending— ss EE ee xx rr rr vv cc ee ee ee -- ss ss ss 11 r a o t B w F o i r n .R - gs . F i b e n N d a t e n e e t r r k - 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 tr o t a i - o n w n s a - s y 2 b c o h P u f a y u n s i r n e e - t s g s o b S e 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 i a r n o o l w g e m s r - s4 lo N a e n t s Banks funds reserves banks trans. Total—46 banks 1974—Oct. 2 271 184 -9,977 -9,890 57.4 17,661 7,684 5,* 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 Nov. 6 200 144 14,046 -13,990 82.1 20,916 6,869 5,033 15,883 1,836 3,1 827 2,353 13 70 412 17,391 -17,734 104.8 23,751 6,360 4,943 18,808 1,417 3,859 899 2,961 20 111 618 16,335 -16,841 99.1 22,357 6,023 5,033 17,324 989 3,660 1,062 2,598 27 147 471 15,342 -15,666 94.3 21,227 5,885 5,080 16,146 805 3,050 922 2,128 8 in New York City 1974—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 Nov. 6 67 5,082 -5,015 70.6 6,172 1,090 977 5,194 112 1 ,792 580 1,212 13 38 163 7,562 -7,688 109.3 8,239 676 677 7,562 2,314 583 1 ,731 20 4 356 6,450 -6,802 94.3 7,513 1,063 1,063 6,450 2,270 605 1 ,666 27 50 82 5,763 -5,795 85.4 6,921 1,158 1,158 5,763 1 ,707 572 1,135 38 outside New York City 1974—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 96.8 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 -11 292 8,080 -8,383 83.5 13,033 4,953 3,750 9,284 1,204 1,623 257 1,366 Nov. 6 133 144 8,965 -8,976 90.4 14,744 5,779 4,056 10,689 1,724 1.388 247 1 ,141 13 32 249 9,829 -10,046 101.6 15,513 5,684 4,267 11,246 1,417 1,545 316 1,229 20 107 262 9,885 -10,040 102.6 14,845 4,960 3,971 10,874 989 1.389 457 932 27 97 389 9,579 -9,871 100.4 14,306 4,727 3,922 10,383 805 1,343 351 992 5 in City of Chicago 1974—Oct. 2 49 1,986 -1,937 99.4 3,163 1,177 1,177 1,986 360 360 9 -4 -3,002 -3,005 153.8 3,837 835 835 3,002 451 451 16 38 118 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 Nov. 6 30 4,082 -4,052 218.0 4,823 741 742 4,082 349 349 13 -20 21 4,340 -4,381 242.2 5,042 702 702 4,340 407 407 20 -11 29 4,180 -4,219 203.1 4,805 625 625 4,180 357 357 27 38 3,794 -3,756 213.9 4,630 836 836 3,794 341 341 33 others 1974—Oct. 2 146 184 4,071 -4,109 49.9 9,193 5,122 3,336 5,857 1,786 1,378 290 1,088 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 Nov. 6 103 144 4,883 -4,923 61.0 9,921 5,038 3,314 6,607 1,724 1,039 247 793 13 52 228 5,489 -5,665 70.1 10,471 4,981 3,565 6,906 1,417 1,138 316 822 20 118 234 5,705 -5,821 73.2 10,040 4,335 3,345 6,694 989 1,032 457 575 27 59 389 5,785 -6,115 75.8 9,676 3,891 3,087 6,589 805 1,002 351 651 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 • DECEMBER 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sees. 13 and 13a i 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 11/30/74 date rate 11/30/74 date rate 11/30/74 date 3 rate 11/30/74 date rate P C B N h o l e e w i s v l t a e o Y d l n a e o n l r p d k . h ia.. 4 4 4 4 / / / / 2 2 2 3 5 5 5 0 / / / / 7 7 7 7 4 4 4 4 m m 77**44 8 8 m* * 4 4 4 4 4 4 / / / / 3 2 2 2 0 5 5 5 / / / / 7 7 7 7 4 4 4 4 1 1 1 1 0 0 0 0 1 9 1 1 0 / 0 0 2 / / / 1 7 3 4 1 / / / / 7 7 7 7 4 4 4 4 1 1 1 1 0 0 0 0 4 4 4 4 / / / / 3 2 2 2 0 5 5 5 / / / / 7 7 7 7 4 4 4 4 9 9 9 9 * * * % 4 4 4 Richmond 4/25/74 7*4 sy 2 4/25/74 10 10/3/74 10 4/25/74 9*4 Atlanta 4/29/74 7*4 8 *4 4/29/74 10 10/14/74 10 4/29/74 9% 7*4 Chicago 4/26/74 7*4 8Vi 4/26/74 10 10/11/74 10 4/26/74 9*4 S M t. i n L n o e u a is p olis.. 4 4 / / 2 2 6 6 / / 7 7 4 4 m 8 8 * % 4 4 4 / / 2 2 6 6 / / 7 7 4 4 1 1 0 0 1 1 0 0 / / 3 4 / / 7 7 4 4 1 10 0 4 4 / / 2 2 6 6 / / 7 7 4 4 9 9 * % 4 Kansas City. . 4/25/74 m 8»/2 4/25/74 10 10/4/74 10 4/25/74 9% Dallas 4/25/74 7*4 8% 4/25/74 10 9/27/74 10 4/25/74 9% San Francisco 4/25/74 m 8% 4/25/74 10 10/4/74 10 4/25/74 9% I 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 E ffective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 1*4 11/2 1959—Mar. 6. 21/2-3 3 1970—Dec. 1 51/2-53/4 534 16. 3 3 4 5*4-53/4 51/2 1955—Apr. 14 1*4-134 1*4 May 29. 3 -31/2 3V4 11 5*4 51/2 j 956— S A M N A e u o p a p g v r y t . . . . 2 1 2 2 1 1 3 1 1 4 9 8 3 0 2 5 5 2 1 3 3 2 2 2 2 2 2 1 l l 3 3 1 1 3 * 3 4 4 / , 2 / 2 1 4 4 3 4 - - 4 2 % * * 2 2 - - - - - - - 2 3 3 4 4 2 2 3 * * 1 1 * * 4 4 3 / 4 4 / 2 4 2 2 2 2 3 2 2 2 2 3 l l l3 1 3 3 3 3 1 * * 4 / 4 / / / 4 4 4 4 2 4 4 1 1 1 9 9 9 6 6 6 3 0 4 — — — J J J S S A N u u u e e u o l p p n n y v g e t e t . . . . 2 2 1 3 1 1 1 1 1 1 6 4 9 2 0 8 1 7 4 0 2 3 . . . . . . . . . . . . 3 3 3 3 3 i 1 * 3 / / 4 4 3 3 3 1 3 4 2 2 - 1 1 1 - / - - / / - / 3 2 3 4 4 4 2 2 2 1 - i / 4 / 2 i 4 4 4 3 3 3 4 4 3 3 3 3 1 1 1 * % / / / 4 2 2 2 1971—J J D F N a u e e o n l b c y v . . . . 2 2 2 1 1 1 1 1 1 1 1 1 2 9 3 9 5 6 8 3 3 9 1 7 9 4 4 4 5 5 4 5 1 3 1 * 3 / 4 / 4 5 5 4 4 5 i 4 2 4 - 3 1 3 3 - - - - - 4 / / 4 5 5 5 5 4 4 4 4 3 3 1 1 * - - / 4 / 5 5 4 4 4 4 5 5 4 4 4 5 5 5 5 4 5 5 5 3 1 1 3 3 * * / / / 4 4 4 4 4 4 4 1965—Dec. 6. 4 -41/2 4*4 24 4*4 4*4 1957—Aug. 9 3 -3*4 3 13. 41/2 41/2 1973—Jan. 15 5 5 1958—J N D a e o n c v . . . 2 2 1 3 2 2 5 2 3 3 3 3 4 * - -3 3 4 *4 3 3 3 3 * 4 1967—A N p o r v . . 2 2 1 0 7 7 4 . , . . 4 4 4 4 - - 1 / 4 4 2 1 1 / / 2 2 4 4 4 4 V *4 4 M A F M e p a a b r r y . . . 2 2 1 6 2 4 3 1 5 5 5 3 * 4 4 5 5 - 3 * - - 6 5 4 4 5 3 * 4 4 6 5 5 5 5 3 * * * 4 4 4 4 M S A A O M e p u c a a p t r g r y t . . . . . 2 2 2 1 1 2 1 1 4 7 1 3 3 8 4 9 5 2 2 2 2 2 l 1 l 3 3 3 * * 3 4 / / 4 4 2 2 4 / 1 4 - 4 - 1 - 2 - 3 - - - 2 2 / 4 2 3 2 3 4 3 i 1 / / / 4 4 2 2 2 2 2 2 2 2 1 I 1 1 1 3 V 4 / / / V 4 4 4 4 4 1 1 9 9 6 6 8 9 — — M D A A A p u e p a c r q r r . . . . . 2 2 2 1 1 1 3 1 2 6 0 8 6 5 9 0 4 , , , , , , , 4 5 5 5 5 ! 1 * 1 / / 5 5 5 4 / 5 4 4 2 1 V 1 - - - - / / - 5 5 5 5 4 4 6 2 i 1 * / / 4 4 4 4 5 5 5 5 5 5 5 6 1 1 1 1 * * * / / / / 4 4 4 4 2 2 2 1974— J J A A u u p u n l r y g e . . 2 1 3 1 2 1 1 5 2 1 0 4 3 8 5 6 7 7 * 6 7 7 6 4 * * 8 - - - 8 4 4 7 6 * * 4 4 6 7 7 6 7 6 8 8 * * * * 4 4 4 4 Nov. 7 21/2 21/2 8, 6 6 In effect Nov. 30, 1974 8 8 1970—Nov. 11 53/4-6 6 1 1 3 6 53/ 5 4 3 - / 6 4 5 53 3 / / 4 4 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

DECEMBER 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 < Time 3 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav- 0-2 2-10 10-100 100-400 Over Sav- Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 0-5 5 0-5 5 6 In effect 1972—Nov. 9. . 10 12 7161/2 171/2 Jan.1,1963. 16% Nov. 16. 13 1966—J S u e l p y t . 1 8 4 , , 2 1 1 5 . . 1973—July 19.. 10i/2 121/2 131/2 18 1967—Mar. 2.... 31/2 31/2 In effect Mar. 16.... 3 3 Nov. 30, 1974 9 Id/2 121/2 18 1968—Jan. 11,18. 16% 17 12 12% 131/2 1969—Apr. 17.... 17 17% 121/2 13 1970—Oct. 1 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks. 10 22 Net demand deposits, other banks 7 14 Time deposits 3 10 1 When two dates are shown, the first applies to the change at reserve less are considered to have the character of business of banks outside of city banks and the second to the change at country banks. For changes reserve cities and are permitted to maintain reserves at ratios set for banks prior to 1963 see Board's Annual Reports. not in reserve cities. For details, see Regulation D and appropriate sup- 2 (a) Demand deposits subject to reserve requirements are gross de- plements and amendments. mand deposits minus cash items in process of collection and demand 5 Reserve city banks. balances due from domestic banks. 6 Except as noted below, member banks are subject to an 8 per cent (b) Requirement schedules are graduated, and each deposit interval marginal reserve requirement against increases in the aggregate of the applies to that part of the deposits of each bank. following types of obligations if they have an initial maturity of less than (c) Since Oct. 16, 1969, member banks have been required under 120 days: (a) outstanding time deposits of $100,000 or more, (b) outstand- Regulation M to maintain reserves against foreign branch deposits ing funds obtained by the bank through issuance by a bank's affilate of computed on the basis of net balances due from domestic offices to their obligations subject to the existing reserve requirements on time deposits, foreign branches and against foreign branch loans to U.S. residents. and (c) funds from sales of finance bills. The 8 per cent requirement Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident applies to balances above a specified base, but is not applicable to banks have been excluded from computations, as have total loans of a bank to that have obligations of these types aggregating less than $10 million. U.S. residents if not exceeding $1 million. Regulation D imposes a similar For the period June 21 through Aug. 29, 1973, (a) included only singlereserve requirement on borrowings from foreign banks by domestic offices maturity time deposits. Previous requirements have been: 8 per cent for of a member bank. The reserve percentage applicable to each of these (a) and (b) from June 21 through Oct. 3, 1973, and for (c) from July 12 classifications is 8 per cent. The requirement was 10 per cent originally, through Oct. 3, 1973; 11 per cent for all three categories from Oct. 4 was increased to 20 per cent on Jan. 7, 1971, and was reduced to the current through Dec. 26, 1973; and 8 per cent from Dec. 27, 1973 through Sept. 8 per cent effective June 21, 1973. Initially certain base amounts were 18, 1974. Beginning Sept. 19, 1974, the 8 per cent requirement is applied exempted in the computation of the requirements, but effective Mar. 14, to only those obligations in (a), (b), and (c) with initial maturities of less 1974, the last of these reserve-free bases were eliminated. For details, see than 120 days. For details, see Regulation D and appropriate supple- Regulations D and M. ments and amendments. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation 7 The 16% per cent requirement applied for one week, only to former club accounts became subject to same requirements as savings deposits. reserve city banks. For other banks, the 13 per cent requirement was For other notes see 2(b) and 2(c) above. continued in this deposit interval. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re- 8 See preceding columns for earliest effective date of this rate. serve cities, and on the same date requirements for reserves against net 9 For changes in reserves required to be maintained beginning Dec. 12, demand deposits of member banks were restructured to provide that each 1974, see "Announcements" on p. 799 of the Nov. 1974 BULLETIN. member bank will maintain reserves related to the size of its net demand deposits. The new reserve city designations are as follows: A bank having NOTE.—All required reserves were held on deposit with F.R. Banks net demand deposits of more than $400 million is considered to have the June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member character of business of a reserve city bank, and the presence of the head banks were allowed to count part of their currency and coin as reserves; office of such a bank constitutes designation of that place as a reserve effective Nov. 24, 1960, they were allowed to count all as reserves. For city. Cities in which there are F.R. Banks or branches are also further details, see Board's Annual Reports. reserve cities. Any banks having net demand deposits of $400 million or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • DECEMBER 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 and size Type of deposit of deposit July 20, Sept. 26, Apr. 19, Jan. 21, July 1, Nov. 1, Nov. 27, 1966 1966 1968 1970 1973 1973 1974 Savings deposits 41/2 Savings deposits Other time deposits:1 Other time deposits (multiple- and Multiple maturity:2 single-maturity): 30-89 days 4 41/2 Less than $100,000: 90 days to 1 year. 5 30-89 days 5 5 1 year to 2 years. . 5 5Vi 90 days to 1 year 5% 5^/2 2 years or more... 5V4 1 year to 2Vi years 6 6 Single-maturity: 2Vz years or more 6i/2 Less than $100,000: 4 years or more in minimum de- 61/2 30 days to 1 year. 5 nomination of $1,000 71/4 2 1 y y e e a a r r s t a o n d 2 o y v e e a r r . s . . . 5V4 $10 G 0 o , v 0 e 0 r 0 n o m r e m nt o a r l e units ( ( 4 3) ) (3) m $100,000 or more: 6 3 0 0 - - 8 5 9 9 d d a a y y s s s5yV2 4 ( ( 3 3 ) ) 9 1 0 80 -1 d 7 a 9 y d s a t y o s 1 year 5% 5V4 6 ( ( 3 3 ) ) 1 year or more... 161/4 (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 2years 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 IV4 per cent was imposed on of $100,000 or more have been suspended. Rates that were effective certificates maturing in 4 years or more with minimum denomination Jan. 21, 1970, and the dates when they were suspended are: of $1,000. There is no limitation on the amount of these certificates that banks may issue. 3 6 0 0 - -8 5 9 9 d d a a y y s s 6 6 V l/i 4 p p e e r r c c e e n n t t f l June 24, 1970 NOTE.—Maximum rates that may be paid by member banks are estab- 90-179 days 6y4 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 714 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 p^id 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 d eposits 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) 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. 22 60 60 Apr. 23 1958—Jan. 15. 70 70 1958—Jan. 16 Aug. 4 50 50 Aug. 5 Oct. 70 70 Oct. 16 1960—July 27. 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5 50 50 1963—Nov. 6 1968—Mar. 10 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 5 80 60 80 1970—May 6 1971—Dec. 3 . 65 50 65 1971—Dec. 6 1972—Nov. 22, 55 50 55 1972—Nov. 24 1974—Jan. 2 65 50 65 Effective Jan. 3, 1974 50 50 50 NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 : 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp- Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur- sales tions pur- sales shifts, or pur- sales maturity pur- sales maturity pur- sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions 197 0 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 197 1 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 197 2 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 197 3 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 1973—Oct.. 2,117 153 Nov. 583 489 1,101 1,515 125 680 331 -2,220 Dec. 1,919 70 10 34 116 -34 35 1974—Jan.. 1,340 335 1,402 93 77 Feb. 768 391 410 687 30 -922 200 Mar. 664 566 165 109 56 25 Apr. 1,237 49 407 172 May, 737 100 2,563 26 -2,663 June 614 954 204 34 July. 988 211 53 Aug. 1,654 851 -2,867 1.057 ,940 Sept. 717 565 786 22 -200 65 200 53 37 Oct.. 547 1,110 ,063 Matched Repurchase Federal agency obligations Bankers Total outright 1 sale-purchase agreements Net acceptances, transactions (U.S. Govt, change net (Treasury bills) securities) in U.S. Outright Repur- Period Govt, chase securi- agree- 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 -6 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 ,197 370 -88 -9 -145 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 1973—Oct.. 2,117 153 4,735 4,735 8,220 7,859 2,325 176 4 -20 8 -46 Nov.. 1,116 489 1,101 2,< 2,089 6,637 7,525 -1,360 74 3 20 -2 -34 Dec.. 2,145 70 10 3,435 3,435 9,523 10,202 1.387 212 84 -126 23 -26 1974—Jan.. 1,519 335 1,402 2,590 2,590 4,442 4,500 -276 29 39 -42 Feb.. 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 Mar.. 854 566 165 702 702 6,248 5,124 1,247 170 48 185 4 223 Apr.. 1,409 49 407 8,069 8,498 524 360 48 33 8 —89 May., 944 100 4.586 4,586 9,192 8,648 1.388 201 15 424 16 142 June., 790 954 204 4,580 4,580 6,124 6,667 -911 309 72 -372 -70 July. . 1,113 211 2.587 4,269 4,965 -2,381 761 35 -270 iii -207 Aug... t ,654 851 9,060 11,285 2,096 2,096 3,028 238 3 59 Sept... 893 565 786 9,420 9,782 3,551 3,551 -96 207 16 40 187 Oct... 547 1,110 1,063 12,574 12,516 4,618 4,618 -1,684 -100 -185 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 fr e a lg n i c a s n C d a o n l a la d r i s a n F fr r a e n n c c s h G m er a m rk a s n Ita li l r i e a n Jap y a e n n e se M p e e x so ic s o 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 222222222222222225555555555555555577777777777777777 111111111111111115555555555555555544444444444444444 ****** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 9999999999999999988888888888888888 11111111111111111 ** 444444444 1971 1111111111111111188888888888888888 33333333333333333***************** 3*3*3*3*3*3* ***************** 22222222222222222 888888888 1972 111111111111111119999999999999999922222222222222222 111111111111111116666666666666666644444444444444444 11111111111111111 2200 666666666 1973—A Se u p g t 44444444444444444 55555555555555555 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ****** ****** ***************** ***************** ***************** 11111111111111111 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Oct 44444444444444444 ***************** ***************** ••••••••••••••••• 11111111111111111 333333333 Nov 44444444444444444 ***************** ***************** ***************** 11111111111111111 333333333 Dec 44444444444444444 ***************** ***************** ***************** 333333333 ***************** ***************** ***************** 1974—Jan 11111111111111111 ***************** ***************** F M e a b r 3333333333333333322222222222222222 66666666666666666 ***************** ***************** 2222222200000000 55555555 ***************** ••••••••••••••••• 11111111111111111*****************00000000000000000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Apr 66666666666666666 ***************** 55555555 ***************** ***************** 11111111111111111 May 6666666666666666633333333333333333 ***************** 55555555 ***************** 5555555555555555577777777777777777 11111111111111111 June 9999999999999999900000000000000000 ***************** 55555555 ***************** 8888888888888888844444444444444444 11111111111111111 July 88888888888888888 ***************** ********11111111 ***************** 66666666666666666 11111111111111111 Aug 222222222222222222222222222222222200000000000000000 3333333333333333399999999999999999 11111111111111111 118800 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BULLETIN • DECEMBER 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1974 1974 1973 Nov. 27 Nov. 20 Nov. 13 Nov. 6 Oct. 30 Nov. 30 Oct. 31 Nov. 30 Assets 11,460 11,460 11,460 11,460 11,460 11,460 11,460 11,460 400 400 400 400 400 400 400 400 245 242 239 235 241 250 245 305 Loans: 1 ,756 2,535 625 842 1,851 1 ,227 1,120 1 ,915 Other Acceptances: Bought outright 339955 229977 214 222111444 222200 339911 216 4455 Held under repurchase agreements 443355 227744 2 111999222 110066 222200 2 2266 Federal agency obligations: 44,,334422 44,,334422 4,011 444,,,000111111 44,,001111 44,,334422 4,011 11 ,,881100 880077 229911 555888000 334444 336699 116688 U.S. Govt, securities: Bought outright: Bills 3366,,557788 3355,,116677 34,348 333666,,,222999555 3355,,996633 3377,,110011 36,535 3355,,005588 111333111 Other 39,774 39,587 39,719 39,719 39,719 39,774 39,719 38,186 3,254 3,229 3,097 3,097 3,097 3,254 3,097 3,149 11,,227799,,660066 11,,227777,,998833 1,277,164 11,,227799,,224422 11,,227788,,777799 11,,228800,,112299 1,279,351 117766,,339933 22,,000099 885566 775599 446600 886699 773366 81,615 78,839 77,164 80,001 79,239 80,998 79,351 77,129 89,350 86,578 82,016 85,840 85,771 87,547 84,700 81,093 P 7,174 P 9,102 P 9,283 P 8,477 P 7,813 P 7,302 P 7,410 6,810 258 256 255 255 253 257 254 221 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss::::::::: DDDDDDDDDeeeeeeeeennnnnnnnnooooooooommmmmmmmmiiiiiiiiinnnnnnnnnaaaaaaaaattttttttteeeeeeeeeddddddddd iiiiiiiiinnnnnnnnn fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccuuuuuuuuurrrrrrrrrrrrrrrrrreeeeeeeeennnnnnnnnccccccccciiiiiiiiieeeeeeeeesssssssss 40 30 2 205 190 40 190 4 2,624 2,627 3,122 3,019 2,986 2,602 2,998 691 P 111,551 P 110,695 P 106,777 P 109,891 P 109,114 P 109,858 P 107,657 100,984 LLLLLLLLLiiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 69,170 68,661 68,802 68,071 67,285 69,036 67,207 62,128 DDDDDDDDDeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss::::::::: P 31,727 P 30,931 P 27,022 P 31,938 P 30,452 P 29,634 P 29,888 28,108 UUUUUUUUU.........SSSSSSSSS......... TTTTTTTTTrrrrrrrrreeeeeeeeeaaaaaaaaasssssssssuuuuuuuuurrrrrrrrryyyyyyyyy—————————GGGGGGGGGeeeeeeeeennnnnnnnneeeeeeeeerrrrrrrrraaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnnttttttttt 1 ,315 1,349 256 1,079 1 ,495 787 1,945 274 499 272 318 404 626 376 420 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr::::::::: 3 745 3 639 3 763 3 707 3 844 3 799 3 815 672 P 34,061 P 33,418 P 28,313 P 32,963 r 32,779 32,554 P 31,866 31,145 5,061 5,518 6,665 5,811 5,569 4,965 5,080 4,686 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd aaaaaaaaaccccccccccccccccccrrrrrrrrruuuuuuuuueeeeeeeeeddddddddd dddddddddiiiiiiiiivvvvvvvvviiiiiiiiidddddddddeeeeeeeeennnnnnnnndddddddddsssssssss 1,265 1,216 1,137 1,165 1,220 1 ,264 1,216 942 p 109,557 P 108,813 P 104,917 P 108,010 P 106,853 P 107,819 P 105,369 98,901 CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 893 891 891 891 888 894 891 838 844 844 844 844 844 844 844 793 257 147 125 146 529 301 553 452 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd cccccccccaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss p 111,551 P 110,695 P 106,111 P 109,891 P 109,114 P 109,858 P 107,657 100,984 CCCCCCCCCooooooooonnnnnnnnntttttttttiiiiiiiiinnnnnnnnngggggggggeeeeeeeeennnnnnnnnttttttttt llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy ooooooooonnnnnnnnn aaaaaaaaacccccccccccccccccceeeeeeeeeppppppppptttttttttaaaaaaaaannnnnnnnnccccccccceeeeeeeeesssssssss pppppppppuuuuuuuuurrrrrrrrrccccccccchhhhhhhhhaaaaaaaaassssssssseeeeeeeeeddddddddd fffffffffooooooooorrrrrrrrr 1,751 1,946 2,050 2,064 2,022 1,702 2,037 604 MMMMMMMMMaaaaaaaaarrrrrrrrrkkkkkkkkkeeeeeeeeetttttttttaaaaaaaaabbbbbbbbbllllllllleeeeeeeee UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss hhhhhhhhheeeeeeeeelllllllllddddddddd iiiiiiiiinnnnnnnnn cccccccccuuuuuuuuussssssssstttttttttooooooooodddddddddyyyyyyyyy fffffffffooooooooorrrrrrrrr 32,486 33,033 32,242 31,842 31,420 32,852 31,763 27,354 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 72,974 72,573 72,262 71,764 71,617 73,234 71,621 66,229 Collateral held against notes outstanding: 2,800 2,750 2,670 2,405 2,405 2,850 2,405 2,485 U.S. Govt, securities 71,215 70,770 70,545 70,545 70,545 71,215 70,545 65,130 74,015 73,520 73,215 72,950 72,950 74,065 72,950 67,615 1 See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Nov. 27 Nov.20 Nov. 13 Nov. 6 Oct. 30 Nov. 30 Oct. 31 Nov. 30 1,756 2,535 625 842 1,851 1,227 1,120 1,914 Within 15 days 1,733 2,532 535 795 1,800 1,202 1,059 1,849 16 days to 90 days 23 3 90 47 51 25 61 65 91 days to 1 year Acceptances—T otal 830 557711 221166 440066 332266 661111 221188 71 Within 15 days 395 229966 4400 225511 115577 226622 5577 31 16 days to 90 days 435 224400 114488 112288 114477 229911 114411 40 91 days to 1 year 3355 2288 2277 2222 5588 2200 U.S. Government securities—Total 81,615 7788,,883399 7777,,116644 8800,,000011 7799,,223399 8800,,999988 7799,,335511 77,129 Within 15 days1 6,095 33,,886655 55,,558877 88,,333355 44,,778877 33,,226644 55,,440088 4,018 16 days to 90 days 21,170 2200,,772233 1188,,559922 1177,,662255 2200,,111166 2233,,004455 1188,,225555 20,689 91 days to 1 year 19,509 1199,,660044 1199,,883311 2200,,888877 2211,,118822 1199,,884488 2222,,553344 20,238 Over 1 year to 5 years 23,139 2233,,004477 2211,,228899 2211,,228899 2211,,228899 2233,,113388 2211,,228899 22,953 Over 5 years to 10 years 9,559 99,,448811 99,,994466 99,,994466 99,,994466 99,,555599 99,,994466 7,469 Over 10 years 2,143 22,,111199 11,,991199 11,,991199 11,,991199 22,,114444 11,,991199 1,762 Federal agency obligations—Total 5,149 44,,663333 44,,001111 44,,559911 44,,335555 44,,771111 44,,001111 1,978 Within 15 days1 888 336611 4499 558800 335533 445500 88 252 16 days to 90 days 98 112244 114422 119911 114433 9988 114444 85 91 days to 1 year 640 662222 555599 555599 559988 664400 559988 280 Over 1 year to 5 years 2,133 22,,113366 11,,993377 11,,993377 11,,993377 22,,113333 11,,993377 665 Over 5 years to 10 years 891 889911 883366 883366 883366 889911 883366 469 Over 10 years 499 449999 448888 448888 448888 449999 448888 227 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) PPPeeerrriiioooddd SS TT MM 22 oo 33 SS tt 33 AA aa ll ''ss N Le .Y ad . ing S 6 M o S t A he 's r s2 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 t A h ' e s r s2 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—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 20,062.3 8,637.9 4,747.6 11,424.3 6,676.7 115.4 274.6 119.7 80.2 65.0 May 20,564.7 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 r132.0 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 Oct 22,814.7 10,734.2 5,084.7 12,080.5 6,995.9 129.6 331.0 127.3 84.1 67.5 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 • DECEMBER 1974 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mi Mz Mi Mi Mt Composition of measures is described in the NOTE below. 1971—De c 235.3 473.1 727.9 241.9 477.9 730.9 1972—De c 255.8 525.7 823.2 263.0 530.7 826.3 1973—Oc t 266.6 561.6 880.0 266.1 559.8 876.9 Nov 269.4 567.2 887.8 270.9 565.6 883.9 Dec 271.5 572.2 895.3 279.1 577.3 898.5 1974—Ja n 270.9 575.5 900.7 277.8 581 .4 905.9 Feb 273.1 580.8 907.7 270.2 578.5 905.4 Mar 275.2 585.5 914.9 272.5 584.9 915.7 Apr 276.6 589.4 920.5 278.2 593.5 926.7 May. . . . 277.6 591.5 923.0 272.9 589.6 922.6 June.... 279.7 596.7 929.5 277.9 596.1 930.8 July 280.2 599.4 933.4 279.7 599.0 934.5 Aug 280.5 602.0 936.6 277.3 598.5 932.6 Sept 280.8 603.6 938.9 279.0 600.4 934.6 Oct.35 281.7 607.8 944.3 281.2 605.9 941.1 Week ending— 1974—Oct. 2. 280.7 604.2 278.7 601.1 9. 280.8 605.4 280.6 604.3 16. 282.4 608.2 283.9 608.7 23. 282.0 608.8 280.8 606.3 30p 281.2 608.3 279.4 604.7 NOTE.—Composition of the money stock measures is as follows: posits open account, and time certificates other than negotiable CD's of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial Mz: Mi plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see "Revision of Money Stock Measures commercial banks. and Member Bank Reserves and Deposits" on pp. 817-27 of the Dec. 1974 A/2: Averages of daily figures for Mi plus savings deposits, time de- BULLETIN. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks UUUU....SSSS.... MMMMoooonnnntttthhhh Time and savings NNNooonnn--- Time and savings NNNooonnn--- GGGGoooovvvvtttt,,,, oooorrrr deposits bbbaaannnkkk Demand deposits deposits bbbaaannnkkk ddddeeee---wwwweeeeeeeekkkk CCCuuurrr--- DDee-- ttthhhrrriiifffttt CCCuuurrr--- ttthhhrrriiifffttt ppppoooossss---rrreeennn--- mmaanndd iiinnnssstttiii--- rrreeennn--- iiinnnssstttiii--- iiiittttssss3333 cccyyy ddee-- tttuuu--- cccyyy Do- tttuuu--ppooss-- tttiiiooonnnsss 222 mes- tttiiiooonnnsss222 iittss CD's1 Other Total Total Mem- tic- CD's1 Other Total ber nonmember 1971—Dec 52.6 182.7 33.5 237.3 271.2 254.9 53.5 188.4 142.6 44.1 33.8 236.0 269.8 253.0 6.9 1972—Dec 56.9 198.9 43.9 269.9 313.8 297.5 57.9 205.1 152.4 51.4 44.2 267.6 311.8 295.6 7.4 1973—Oct 60.5 206.1 64.7 295.0 359.6 318.4 60.4 205.7 149.7 53.8 66.6 293.7 360.3 317.0 6.0 Nov 61.0 208.4 63.1 297.7 360.8 320.6 61.5 209.5 151.8 55.1 64.3 294.7 359.0 318.3 4.3 Dec 61.6 209.9 63.8 300.7 364.5 323.1 62.7 216.4 157.0 56.6 64.0 298.2 362.2 321.2 6.3 1974—Jan 62.0 208.9 66.4 304.6 371.0 325.2 61.6 216.2 156.4 56.9 65.8 303.6 369.4 324.5 8.1 Feb 62.7 210.4 68.2 307.7 375.9 326.9 61.9 208.3 151.1 54.6 66.1 308.3 374.3 326.9 6.6 Mar 63.3 211.9 68.0 310.3 378.3 329.5 62.7 209.8 152.4 54.7 66.7 312.4 379.1 330.8 6.4 Apr 63.9 212.8 73.9 312.7 386.7 331.1 63.5 214.7 155.8 56.2 71.8 315.3 387.1 333.2 6.0 May 64.3 213.2 78.5 314.0 392.5 331.5 64.1 208.7 151.3 54.8 77.2 316.7 393.9 333.0 7.6 June 64.6 215.0 81.3 317.0 398.4 332.7 64.8 213.1 153.6 56.1 79.6 318.3 397.9 334.7 6.1 July 64.8 215.4 83.6 319.2 402.8 334.0 65.3 214.4 154.4 56.5 82.8 319.2 402.0 335.6 5.4 Aug 65.4 215.1 83.8 321.5 405.3 334.5 65.7 211.6 152.4 56.2 87.1 321.2 408.3 334.2 4.0 Sept 65.8 215.0 84.8 322.8 407.6 335.3 65.8 213.2 153.5 56.8 88.7 321.4 410.2 334.1 5.4 Oct.f 66.5 215.2 86.2 326.1 412.3 336.6 66.4 214.8 154.5 57.4 88.8 324.7 413.5 335.2 3.6 Week ending— 1974—Oct 2 65.9 214.8 86.0 323.5 409.5 65.4 213.3 154.5 55.9 89.3 322.4 411.7 6.7 9 6666666666.....33333 222221111144444.....66666 8888866666.....44444 333332222244444.....66666 444441111111111.....00000 6666666666.....99999 222221111133333.....77777 111115555533333.....88888 5555577777.....00000 8888899999.....22222 333332222233333.....66666 444441111122222.....88888 44444.....66666 16 6666666666.....66666 222221111155555.....88888 8888866666.....11111 333332222255555.....88888 444441111111111.....99999 6666666666.....88888 222221111177777.....11111 111115555566666.....00000 5555588888.....33333 8888888888.....88888 333332222244444.....88888 444441111133333.....55555 33333.....00000 23 6666666666.....55555 222221111155555.....66666 8888866666.....22222 333332222266666.....88888 444441111133333.....00000 6666666666.....33333 222221111144444.....55555 111115555544444.....00000 5555577777.....66666 8888888888.....99999 333332222255555.....55555 444441111144444.....33333 33333.....33333 3300**\\.. .. .. 6666666666.....77777 222221111144444.....55555 8888866666.....11111 333332222277777.....00000 444441111133333.....11111 6666655555.....99999 222221111133333.....44444 111115555533333.....88888 5555566666.....88888 8888888888.....33333 333332222255555.....44444 444441111133333.....77777 33333.....11111 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

DECEMBER 1974 • BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER SANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non- Total bor- Re- Avail- Demand Demand rowed quired able2 Time Time Total sa a v n in d g s Private G U o . v S t . . Total sa a v n in d g s « P ri • v at * e G U o . v S t . S.A. N.S.A. 1970—Dec... 29.20 28.87 28.95 27.13 321.3 178.9 136.0 6.4 325.2 178.1 141.1 6.0 333.4 337.2 1971—Dec... 31.33 31.20 31.15 29.03 360.3 210.7 143.8 5.8 364.6 209.7 149.2 5.7 365.2 369.5 1972—Dec... 31.46 30.41 31.17 29.09 402.0 242.0 154.5 5.6 406.8 240.7 160.1 6.1 406.4 411.2 1973—Oct... 34.93 33.45 34.70 32.83 439.7 277.9 156.5 5.2 439.7 278.8 156.1 4.8 446.2 446.2 Nov.. 34.87 33.48 34.63 32.78 440.4 2.77.8 157.5 5.1 438.2 276.6 158.3 3.2 446.8 444.6 Dec... 35.16 33.87 34.86 32.97 442.2 280.0 158.2 3.9 447.5 278.5 164.0 5.0 448.7 454.0 1974—Jan... 35.82 34.77 35.66 32.82 446.8 284.1 157.5 5.1 453.0 283.1 163.4 6.5 453.3 459.5 Feb.. 35.12 33.92 34.93 32.90 447.5 287.4 157.9 2.2 447.1 285.7 156.3 5.1 454.4 454.0 Mar.. 34.98 33.66 34.84 33.13 450.4 288.6 158.7 3.2 450.4 288.6 156.9 4.9 457.9 457.9 Apr... 35.88 34.15 35.70 33.66 461.2 296.6 160.0 4.6 462.5 296.2 161.5 4.8 469.2 470.6 May.. 36.52 33.93 36.34 34.26 467.0 302.3 159.1 5.6 464.7 303.0 155.6 6.1 475.8 473.5 June.. 36.74 33.73 36.54 34.71 472.9 307.0 160.6 5.3 470.0 306.4 158.9 4.7 481.2 478.4 July.. 37.40 34.10 37.24 34.96 475.7 310.7 160.7 4.2 474.3 310.1 160.0 4.1 484.9 483.5 Aug.. 37.27 33.93 37.08 35.27 478.5 312.4 159.9 6.2 475.1 315.3 157.0 2.9 487.5 484.2 Sept.. 37.28 34.00 37.09 35.30 480.6 314.4 159.9 6.3 479.6 317.2 158.3 4.2 489.1 488.2 Oct.f, 36.87 35.06 36.73 34.91 480.4 317.2 159.4 3.7 480.4 318.6 159.0 2.7 488.2 488.2 I 1 Averages of daily figures. Member bank reserve series reflects actual by Regulation D. Private demand deposits include ,all demand deposits reserve requirement percentages with no adjustment to eliminate the except those due to the U.S. Govt., less cash items in process of collection effect of changes in Regulations D and M. Required reserves were in- and demand balances due from domestic commercial banks. creased by $660 million effective Apr. 16, 1969, and $400 million effective 4 Total member bank deposits subject to reserve requirements, plus Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Euro-dollar borrowings, loans sold to bank-related institutions, and Required reserves were reduced by approximately $2.5 billion, effective certain other nondeposit items. This series for deposits is referred to as Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 "the adjusted bank credit proxy." 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 Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits" on pp. 817-27 of the Dec. 1974 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. 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.. mmmeeennntttsss111 TToottaall ii 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 ss lloo oo aa lldd nn 22 ss Total l P oa lu n s s TTrr uu ee rr aa yy ss -- OOtthheerr44 sold2 sold 2 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—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 57.2 134.8 669.8 480.3 485.9 112.3 175.4 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 6.... 692.0 500.2 505.5 180.7 183.6 55.3 136.5 681.5 499.3 504.6 179.1 182.0 52.0 136.2 Sept 25p 687.0 498.2 503.5 180.8 183.6 52.2 136.6 686.6 499.2 504.5 180.9 183.7 50.6 136.7 Oct. 30^ 687.1 499.5 504.7 182.5 185.3 49.7 137.9 685.8 498.2 503.4 181.3 184.1 50.6 137.0 Nov. 21 p 7.. 688.3 500.7 505.6 183.0 185.7 49.3 138.3 688.0 498.9 503.9 182.0 184.7 52.2 136.8 1 Adjusted to exclude domestic commercial interbank loans. 7 Beginning Oct. 31,1974, total loans and investments of all commerical 2 Loans sold are those sold outright by commercial banks to own sub- banks were reduced by $1.5 billion in connection with the liquidation of sidiaries, foreign branches, holding companies, and other affiliates. one large bank. Total loans were reduced by $1.0 billion and "Other 3 Beginning June 30, 1972, commercial and industrial loans were re- securities" by $0.5 billion. Business loans were reduced by $0.6 billion. duced by about $400 million as a result of loan reclassifications at one In late November, business loans were increased by $0.1 billion as a large bank. result of loan reclassifications at another large bank. 4 Beginning June 30, 1971, Farmers Home Administration insured notes totaling approximately $700 million are included in "Other securities" NOTE.—Total loans and investments: For monthly data, Jan. 1959rather than in "Loans." June 1973, see Nov. 1973 BULLETIN, pp. A-96-A-97, and for 1948-58, 5 Beginning June 30, 1974, data revised to include one large mutual Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current savings bank that merged with a nonmember commercial bank. Total seasonally adjusted series see the Nov. 1973 BULLETIN, pp. 831-32, and loans and investments were increased by about $600 million of which the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans: $500 million were in loans and $100 million in "other securities." For monthly data, Jan. 1959-June 1973, see Nov. 1973 BULLETIN, pp. 6 Beginning Aug. 28, 1974, loans sold outright to bank affiliates reflect A-96-A-98; for description see July 1972 BULLETIN, p. 683. Data are for a newly issued definition of the group of affiliates included as well as a last Wednesday of month except for June 30 and Dec. 31; data are partly somewhat different group of reporting banks. Total loans were decreased or wholly estimated except when June 30 and Dec. 31 are call dates. by $100 million on the new basis; commercial and industrial loans were Digitized for dFeRcrAeaSseEd Rby $100 million. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS • DECEMBER 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 bilities row- aacc-- of iinnssuurraannccee Total Loans and Total 3 Demand ings ccoouunnttss banks l U.S. capital De- Treas- Other ac- mand Time Time5 ury 2 counts4 U.S. Govt. Other Last-Wednesday-of-month series 6 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 1947—Dec. 317. 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 17,079 799 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—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 31p.. . 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. 28P. . . 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 O N c o t v . . 2 30 1 *>p. . . . . . 7 7 2 2 6 0 , , 4 0 4 1 0 0 5 5 3 3 7 2 , , 3 40 9 0 0 5 5 2 0 , , 2 6 3 4 0 0 9 8 7 2 0 0 1 1 1 1 5 0 , , 6 37 7 0 0 8 8 7 9 6 0 , , 4 3 0 1 0 0 6 7 9 0 8 6 , , 0 1 3 3 0 0 3 3 3 4 , , 6 9 0 4 0 0 1 1 0 0 , , 3 1 1 8 0 0 2 3 , , 9 8 8 0 0 0 2 2 4 4 2 7 , , 1 9 3 1 0 0 4 4 0 0 9 9 , , 1 1 4 7 0 0 6 7 7 0 , , 3 1 3 0 0 0 6 6 2 1 , ,4 0 6 2 0 0 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 5,1 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—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 91,430 680,511 533,807 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 98,53* 91,002 679,160 531,195 27,831 9,522 5,782 180,114 307,946 62,171 47,054 O N c o t v . . 23018 .p . 5 5 5 4 6 8 , , 1 8 9 0 5 1 4 4 1 2 6 1 , , 1 5 1 3 8 3 3 3 4 6 , , 8 3 1 9 3 3 9 98 7 , , 2 8 6 7 9 0 9 9 3 8 , ,5 6 9 7 8 4 6 6 8 9 0 4 . , 1 7 7 0 3 3 5 5 4 3 2 5, , 1 5 2 1 8 6 3 3 1 2 , , 0 4 4 2 3 2 9 9 , , 0 2 8 2 9 2 2 2 , , 1 8 1 6 7 2 1 1 8 84 9 , , 5 6 7 8 3 6 3 3 0 0 8 8 . , 3 3 0 2 6 4 6 65 0 , , 4 8 1 0 1 3 4 4 7 6 , , 1 9 3 5 1 6 Call date series Insured banks: Total: i 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 1960—Dec. 31.. 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 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 42,427 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 46,731 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 52,166 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 57,603 1974—Apr. 24.. 693,489 503,653 189,837 98,997 826,736 664,070 30,539 6,634 5,913! 234,435 386,550 66,160 59,757 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 61,003 I National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088] 23,262 8,322 4 3,640 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 7951 53,541 19,278 45 5,409 I960—Dec. 31.. 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265! 71,660 39,546 111 11,098 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 24,868 1971—Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 1972—Dec. 31.. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 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 33,125 1974—Apr. 24.. 404,972 299,182j 105,790 59,806 486,163 384,314 16,492 3,997 3,636 135,188 225,000 45,627 34,026 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 34,966 For notes see p. A-l 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 ss ii dd ff uu ii ee cc rr FF mm aa aa DD tt nn bb ii cc ee II oo CC ee rr nn ss hh bb ii yy pp Total Loa l ns T U re . S S a e s . c - urit OO ie tt s hh eerr a C ss a e s t h s 3 c b T a i a l a l p o i n i c a t t i d t i - a - e a l s l Total3 m D I a n e n - t d e rba TT nk iimm 3 ee Dema O nd th er TTiimmee r B i o n o w g r s - - cc cc TT oo aa aa oo pp uu cc tt ii nn -- tt aa tt aa ll ss ll bb NN aa bb uu oo nn ee mm ff kk rr ss -ury 22 counts 4 U.S. Other 55 Govt. 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 15,8 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 1,291 253 13 329 852 1947—Dec. 317.. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 j 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 ,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 alsQ 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 • DECEMBER 1974 ASSETS 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 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 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. Treasury 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 acceptances 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 884,755 871,986 692,529 138,996 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

DECEMBER 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 Alt 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 Accumulated for personal loan payments 2 460 457 330 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 48,279 U.S. Government 446 446 334 53 31 100 149 111 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 j 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 11,,444488 427 22,,336688 2,104 1,362 O Re th se e r r v r e e s s e o r n v e s s e c o u n r i l t o ie a s n s 1 1 7 2 1 5 1 1 2 6 5 6 1 7 1 9 0 1 52 88 6 5 9 8 4 6 7 1 Total capital accounts 61,623 61,003 46,946 9,136 2,068 16,323 19,418 14,677 Capital notes and debentures 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 Preferred 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 total 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 .9 1.6 1.5 1.3 . 1 S U t . a S t . e s T a re n a d s u p r o y l itical subdivisions A A . . 6 1 1.2 A .7 . . 2 7 . 1 All other trading account securities .2 .2 .2 ,4 .4 A 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 • DECEMBER 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 and culcial Treas- Other indus- tural banks ury se- trial U.S. U.S. se- curi- Treas- Other Treas- Other curi- ties ury sees. ury sees. ties sees. sees. Large banks— Total 1973 Nov. 7 363,207 16,290 14,400 1,312 349 229 263,271 107,194 3,409 1,445 6,012 138 2,903 14 360,150 15,811 14,163 1,206 258 184 261,638 107,300 3,409 613 5,752 135 2,870 21 358,562 13,487 12,059 904 309 215 261,566 107,577 3,409 628 5,632 143 2,844 28 359,766 14,447 12,843 1,065 356 183 262,469 107,632 3,434 623 5,564 142 2,853 1974 Oct. 2 398,212 16,938 13,834 1,300 889 915 299,353 128,932 3,771 898 3,709 101 2,629 9 401,400 19,550 14,057 3,556 836 1,101 299,451 128,683 3,754 2,500 4,009 91 2,634 16 399,373 18,515 14,723 2,059 773 960 298,286 129,212 3,739 618 3,457 92 2,629 23 394,245 15,493 12,541 1,240 744 968 297,009 128,507 3,751 1 ,324 3,373 94 2,607 30 395,157 16,243 12,929 1,820 696 798 296,807 128,520 3,759 966 3,738 94 2,613 Nov. 6P 399,743 18,050 15,035 1,409 774 832 298,378 129,432 3,736 828 4,045 92 2,614 13 v 403,309 19,800 15,914 2,344 741 801 299,097 129,271 3,717 1,742 3,830 91 2,622 220J p p 4 3 0 9 0 9 , , 7 6 4 7 1 3 1 1 7 7 , , 3 3 0 9 5 8 1 14 4 , , 2 3 8 3 8 9 1 1, , 3 3 0 2 3 4 9 8 2 4 0 3 8 8 7 1 1 5 2 29 9 8 8 , , 5 9 9 8 1 4 1 1 2 2 9 9 , , 3 7 7 6 6 6 3 3 , , 7 7 2 2 5 8 1,9 6 4 3 6 3 4 3 , , 0 7 9 7 1 8 9 8 4 6 2 2, , 6 5 1 8 1 7 New York City 1973 Nov. 7 79,250 1,060 940 120 63,271 30,783 107 1,318 3,781 30 685 1 4 78,054 1,845 1,725 120 61,585 30,737 108 543 3,447 31 662 2 1 77,988 1,760 1,640 120 61,346 30,851 109 534 3,360 31 653 28 78,616 2,298 2,178 120 61,839 30,935 112 514 3,296 31 652 1974 Oct. 2 92,213 2,101 1,882 140 79 75,294 39,104 122 789 2,466 21 545 9 92,752 1,600 1,519 54 27 76,138 39,168 117 2,146 2,755 21 544 16 92,838 2,840 2,755 33 52 74,785 39,287 119 520 2,304 21 547 23 91,387 2,435 2,291 72 72 74,327 38,864 122 1,187 2,289 21 547 30 90,788 1,704 1,569 86 49 74,266 38,913 123 826 2,557 21 545 Nov. 6^ 91,882 1,537 1,374 112 46 75,431 39,423 124 752 2,847 21 550 13* 92,588 1,130 979 99 47 76,129 39,481 120 1,444 2,639 22 553 20* 92,821 1,335 1,176 102 52 76,433 39,546 120 1,727 2,507 20 546 27 p 92,441 1,746 1 ,526 100 100 75,919 39,909 119 562 2,785 20 538 Outside New York City 1973 Nov. 7 283,957 15,230 13,460 1,192 349 229 200,000 76,411 3,302 127 2,231 108 2,218 14 282,096 13,966 12,438 1,086 258 184 200,053 76,563 3,301 70 2,305 104 2,208 21 280,574 11,727 10,419 784 309 215 200,220 76,726 3,300 94 2,272 112 2,191 2 8 281,150 12,149 10,665 945 356 183 200,630 76,697 3,322 109 2,268 111 2,201 1974 Oct. 2 305,999 14,837 11,952 1,160 889 836 224,059 89,828 3,649 109 1,243 80 2,084 9 308,648 17,950 12,538 3,502 836 1 ,074 223,313 89,515 3,637 354 1,254 70 2,090 16 306,535 15,675 11,968 2,026 773 908 223,501 89,925 3,620 98 1,153 71 2,082 23 302,858 13,058 10,250 1,168 744 896 222,682 89,643 3,629 137 1,084 73 2,060 30 304,369 14,539 11,360 1,734 696 749 222,541 89,607 3,636 140 1,181 73 2,068 Nov. 6 P 307,861 16,513 13,661 1,297 769 786 222,947 90,009 3,612 76 1,198 71 2.064 13* 310,721 18,670 14,935 2,245 736 754 222,968 89,790 3,597 298 1,191 69 2,069 2201 P p 3 3 0 0 7 7 , , 9 2 2 3 0 2 1 15 6 , , 5 0 5 6 9 3 1 1 2 3, , 1 7 6 6 3 2 1 1 , , 2 2 2 0 2 3 9 8 1 2 5 3 7 7 7 6 1 3 2 2 2 2 2 2 , , 5 6 5 7 1 2 8 89 9 , , 8 8 5 3 7 0 3 3 , , 6 6 0 0 8 6 21 7 9 1 1 1 , , 2 3 7 0 1 6 6 7 6 4 2 2 . , 0 0 6 4 5 9 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 3,490 4,422 32,293 1,354 20,991 24,180 5,052 4,416 11,908 2,804 , Nov. 7 3,562 4,495 32,383 1,408 19,948 24,129 5,114 4,429 11,865 2,721 14 3,833 4,365 32,444 1,403 20,028 24,872 4,837 4,075 12,354 3,606 21 3,856 4,543 32,525 1,435 19,993 24,257 4,434 3,911 12,416 3,496 28 1974 3,596 6,343 35,142 1,643 20,554 19,766 1,224 3,691 10,939 3,912 Oct. 2 3,517 6,338 35,133 1,636 19,821 20,104 1,551 3,643 10,927 3,983 9 3,373 6,566 35,063 1,611 20,140 20,553 2,032 3,624 10,903 3,994 16 3,349 6,010 35,025 1,626 19,983 20,373 1,996 3,617 10,71 4.042 23 3,308 6,068 35,076 1,627 19.666 20,522 2,174 3,658 10,684 4,006 30 3,261 5,994 35,157 1,568 19,877 21,605 2,978 3,799 10,876 3,952 Nov. 6p 3,295 6,083 35,011 1,598 20,226 21,948 3,473 3,656 10,868 3,951 13p 3,237 6,144 34,967 1,618 19.667 22,721 3,310 3,562 11,806 4.043 2QP 3,249 6,209 34,985 1 ,617 19,843 22,014 2,735 3,519 11,869 3,891 27 * New York City 1973 1,368 1,930 2,411 685 5,200 4,890 1,734 687 1,719 750 Nov. 7 1,468 2,066 2,419 748 4,390 4,834 1,797 71 1,659 667 14 1,647 1,972 2,432 722 4,456 5,029 1,443 759 1,634 1,193 21 1,661 2,090 2,443 728 4,440 4,719 1 J 664 1,681 1,186 28 1974 1,654 3,032 2,599 871 4,702 3,768 33 372 1,970 1,393 Oct. 2 1,552 3,108 2,633 885 4,239 4,097 401 336 1,898 1,462 9 1,495 3,345 2,627 874 4,333 4,420 738 344 1,893 1,445 16 1,513 2 — 2,615 852 4,379 4,115 472 344 1,829 1,470 23 1,521 2; 977 2,630 832 4,080 4,322 630 361 1,853 1,478 30 1.564 2,847 2,637 861 4,295 4,435 876 338 1,825 1,396 Nov. 6* 1,587 2,941 2,634 873 4,509 4,728 1,116 358 1,863 1,391 13f 1 1 . , 5 5 6 7 5 9 3 3, , 0 0 2 6 1 7 2 2 , , 6 6 3 6 9 0 8 8 6 7 5 2 4 4 , , 2 1 4 4 5 0 4 4 , , 7 5 7 6 6 2 9 6 5 3 6 3 4 3 2 8 1 6 2 2 , , 2 3 7 1 2 4 1 1 , , 1 1 6 9 2 4 2201* p Outside New York City 1973 2,122 2,492 29,882 669 15,791 19,290 3,318 3,729 10,189 2,054 Nov. 7 2,094 2,429 29,964 660 15,558 19,295 3,317 3,718 10,206 2,054 14 2,186 2,393 30,012 681 15,572 19,843 3,394 3,316 10,720 2,413 21 2,195 2,453 30,082 707 15,553 19,538 3,246 3,247 10,735 2,310 28 1974 1,942 3,31 32,543 772 15,852 15,998 1,191 3,319 8,969 2,519 Oct. 2 1,965 3,230 32,500 751 15,582 16,007 1,150 3,307 9,029 2,521 9 1,878 3,221 32,436 737 15,807 16,133 1,294 3,280 9,010 2,549 16 1,836 3,130 32,410 774 15,604 16,258 1,524 3,273 8,889 2,572 23 1,787 3,091 32,446 795 15,586 16,200 1 ,544 3.297 8,831 2,528 30 1,697 3,147 32,520 707 15,582 17,170 2,102 3,461 9,051 2,556 Nov. 6p 1,708 3,142 32,377 725 15,717 17,220 2,357 3.298 9,005 2,560 13* 1 1 , , 6 6 7 7 2 0 3 3 , , 0 1 7 8 7 8 3 32 2 , , 3 3 2 2 5 8 7 7 4 5 5 3 1 15 5 , , 7 4 0 2 3 2 1 1 7 7, , 9 4 4 5 5 2 2 2, , 1 3 0 54 2 3 3 , , 0 1 9 7 8 6 1 9 9 , , 5 5 5 3 5 4 2 2 , , 6 8 9 8 7 1 2201* p For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS • DECEMBER 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest- Obligations Other bonds, items Re- Bal- ments of States corp. stocks, in serves Cur- ances in sub- Wednesday and and process with rency with sidiar- Other political securities of F.R. and do- ies not assets Total subdivisions collec- Banks coin mestic consoltion banks idated Tax Certif. war- All of All rants 3 other partici- other5 pation4 Large banks— Total 1973 Nov. 7 59,466 7,749 39,187 2,212 10,318 36,848 20,940 3,955 14,314 1,355 20,599 14 58,572 7,348 38,666 2,230 10,328 36,059 25,990 4,360 12,417 1,360 19,883 21 58,637 7,180 38,970 2,193 10,294 31,700 23,570 4,021 10,576 1,363 20,033 28 58,593 7,152 38,907 2,298 10,236 31,361 22,713 4,745 12,228 1,368 20,016 1974 Oct. 2 62,155 6,899 40,8 2,431 11,937 33,872 24,163 4,394 10,485 1,642 30,432 9 62,295 6,963 41,127 2,494 11,71 29,963 20,139 4,448 10,505 1,622 29,910 16 62,019 6,764 41,090 2,447 11,718 42,009 27,592 4,628 11,918 1,585 29,321 23 61,370 6,324 40,818 2,456 11,772 33,617 24,425 4,752 10,703 1,600 29,558 30 61,585 6,254 40,799 2,582 11,950 33,857 23,873 4,865 11,178 1,605 30,367 Nov. 6* 61,710 6,498 40,826 2,541 11,845 38,780 25,306 4,258 11,957 1,610 30,600 13* 62,464 6,784 41,233 2,521 11,926 38,140 21,313 4,803 11,572 1,629 31,335 20* 61,638 6,515 40,758 2,504 11,861 32,196 23,906 4,766 11,069 1,638 30,539 27* 61,763 6,415 40,831 2,530 11,987 37,932 24,685 4,519 10,639 1,599 31,605 New York City 1973 Nov. 7 10,029 2,311 5,070 611 2,037 16,504 5,719 508 7,972 663 5,945 14 9,790 2,368 4,803 601 2,018 13,296 7,197 511 6,431 662 5,636 21 9,853 2.247 4,975 590 2,041 9,870 5,358 454 4,328 665 5,909 28 9,760 2.248 4,878 594 2,040 11,71 5,387 539 6,308 668 5,804 1974 Oct. 2 11,050 2,370 5,714 473 2,493 10,918 6,292 504 4,238 711 10,059 9 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 51 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 Nov. 6* 10,479 2,011 5,538 524 2,406 14,646 7,077 511 5,267 722 10,212 13* 10,601 1,870 5,843 502 2,386 13,549 7,368 543 4,930 723 10,633 20* 10,277 1,843 5,652 501 2,281 10,790 6,619 531 5,327 724 9,930 27* 10,214 1,813 5,586 512 2,303 14,828 6,376 474 4,901 726 10,649 Outside New York City 1973 Nov. 7 49,437 5,438 34,117 1,601 8,281 20,344 15,221 3,447 6,342 692 14,654 14 48,782 4,980 33,863 1,629 8,310 22,763 18,793 3,849 5,986 698 14,247 21 48,784 4,933 33,995 1,603 8,253 21,830 18,212 3,567 6,248 698 14,124 28 48,833 4,904 34,029 1,704 8,196 19,650 17,326 4,206 5,920 700 14,212 1974 Oct. 2 51,105 4,529 35,174 1,958 9,444 22,954 17,871 3,890 6,247 931 20,373 9 51,378 4,679 35,349 2,022 9,328 19,768 14,580 3,925 6,013 913 19,837 16 51,226 4,488 35,365 2,020 9,353 26,098 20,340 4,117 6,560 876 19,782 23 50,860 4,284 35,204 2,009 9,363 20,176 18,701 4,245 5,514 887 19,647 30 51,089 4,277 35,258 2,077 9,477 21,415 15,935 4,341 5,815 881 20,082 Nov. 6* 51,231 4,487 35,288 2.017 9,439 24,134 18,229 3,747 6,690 888 20,388 13* 51,863 4,914 35,390 2,019 9,540 24,591 13,945 4,260 6,642 906 20,702 20* 51,361 4,672 35,106 2,003 9,580 21,406 17,287 4,235 5,742 914 20,609 27* 51,549 4,602 35,245 2.018 9,684 23,104 18,309 4,045 5,738 873 20,956 For notes see page A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1973 164,691 112,459 6,800 2,200 28,247 820 1,021 3,999 9,145 187,077 56,257 94,097 22,079 5,622 8,525 Nov. 7 159,601 112,884 6,410 1,494 23,768 685 888 4,011 9,461 186,338 56,262 93,622 21,886 5,795 8,278 14 153,280 111,914 6,450 2,424 21,189 629 954 3,835 5,885 186,468 56,315 93,872 21,670 5,815 8,310 21 156,083 112,459 6,173 2,138 22,406 604 1,055 3,777 7,471 186,481 56,278 94,014 21,568 5,849 8,267 28 1974 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 57,462 119,243 25,057 7,280 10,742 23 159,896 115,026 6,106 1,155 23,832 679 1,247 4,635 7,216 219,890 57,408 118,126 24,652 7,217 10,627 30 166,316 117,445 5,942 2,225 26,133 807 1,174 4,949 7,641 219,310 57,586 117,621 24,112 7,252 10,859 Nov. 164,764 120,705 5,931 1,473 22,779 723 1,250 5,131 6,772 219,194 57,661 117,386 24,026 7,216 11,051 13p 158,403 114,891 6,174 2,260 21,752 569 1,072 5,339 6,346 218,324 57,766 116,836 23,804 7,162 10,868 20? 164,767 118,252 6,086 1,892 24,816 575 1,058 5,136 6,952 218,867 57,806 117,439 23,719 7,268 10,670 27® New York City 1973 52,027 25,728 464 477 15,684 400 863 2,981 5,430 34,056 4,966 19,110 2,074 3,736 4,091 Nov. 7 45,954 23,752 366 150 12,030 346 731 2,949 5,630 34,558 4,977 19,456 2,143 3,934 3,969 14 40,924 23,851 433 458 9,890 323 804 2,763 2,402 34,952 4,961 19,699 2,148 4,039 4,028 21 44,706 24,566 344 363 11,561 311 895 2,777 3,889 34,913 4,961 19,694 ' 2,140 4,044 3,998 28 1974 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 49,574 26,943 274 475 13,056 414 983 3,691 3,738 46,386 4,967 27,657 1 ,874 4,100 6,453 Nov. 6 p 47,283 27,792 342 168 10,473 386 1,028 3,802 3,292 46,186 4,991 27,340 1,900 4,090 6,539 13*> 44,481 25,207 303 397 10,299 271 887 4,061 3,056 45,786 4,999 27,186 1 ,833 4,020 6,414 20* 49,150 26,544 338 273 13,475 289 869 3,828 3,534 46,413 4,994 27,710 1,844 4,136 6,303 27 p Outside New York City 1973 112,664 86,731 6,336 1 ,723 12,563 420 158 1,018 3,715 153,021 51,291 74,987 20,005 1,886 4,434 .Nov. 7 113,647 89,132 6,044 1,344 11,738 339 157 1,062 3,831 151,780 51,285 74,166 19,743 1,861 4,309 14 112,356 88,063 6,017 1,966 11,299 306 150 1,072 3,483 151,516 51,354 74,173 19,522 1,776 4,282 21 111,377 87,893 5,829 1 ,775 10,845 293 160 1,000 3,582 151,568 51,317 74,320 19,428 1,805 4,269 28 1974 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 52,505 91,088 23,041 3,138 4,382 . 23 112,714 88,977 5,740 1,027 11,744 314 186 1,251 3,475 173,524 52,463 90,280 22,781 3,148 4,318 . 30 116,742 90,502 5,668 1,750 13,077 393 191 1,258 3,903 172,924 52,619 89,964 22,238 3,152 4,406 . . Nov. 6p 117,481 92,913 5,589 1,305 12,306 337 222 1,329 3,480 173,008 52,670 90,046 22,126 3,126 4,512 13 P 113,922 89,684 5,871 1,863 11,453 298 185 1,278 3,290 172,538 52,767 89,650 21,971 3,142 4,454 20* 115,617 91,708 5,748 1 ,619 11,341 286 189 1,308 3,418 172,454 52,812 89,729 21,875 3,132 4,367 27 p For notes see p. A-24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS • DECEMBER 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 eral Other Total loans included in time Wednesday funds liabili- capital Total and De- and savings deposits*1 pur- F.R. ties, Secur- ac- loans invest- mand chased, Banks Others etc. 8 Loans ities counts (gross) ments deposits etc.7 ad- (gross) ad- Issued Issued justed 9 ad- justed i o Total to to justed 9 IPC's others Large banks— Total 1973 NOV. 7 49,546 531 5,894 17,488 4,613 31,313 261,671 345,317 97,396 64,470 42,554 14 51,676 3,699 5,645 17,223 4,613 31,359 259,724 342,425 98,280 63,814 41,979 21 48,791 975 5,653 18,678 4,606 31,309 259,161 342,670 97,967 64,117 42,257 28 48,407 1,025 5,533 18,598 4,606 31,399 260,217 343,067 100,178 64,043 42,378 1974 OCT. 2 50,055 2,183 5,892 23,610 5,173 33,740 298,861 380,782 101,460 89,505 61,832 9 51,742 311 6,022 25,696 5,145 33,735 301,427 383,826 101,374 88,858 61,207 16 53,900 1,278 5,544 25,526 5,148 33,687 298,705 381,277 99,458 88,694 61,288 23 48,912 1,907 5,564 25,731 5,143 33,664 296,612 378,355 97,596 89,016 61,712 30 49,896 1,285 5,448 25,604 5,143 33,676 296,813 378,920 101,052 87,673 60,640 NOV. 6* 55,887 476 5,176 25,843 5,193 33,989 298,132 381,447 99,178 87,088 60,184 13* 57,545 311 5,054 26,028 5,190 33,952 299,688 384,100 102,372 87,146 59,959 20* 54,958 2,243 4,983 26,797 5,196 33,888 298,806 383,165 102,195 86,320 59,403 27* 54,758 1,456 4,840 26,919 5,207 33,776 298,359 382,136 100,127 87,168 60,159 New York City 1973 NOV. 7 13,092 2,417 5,744 1,324 7,901 62,023 76,942 19,362 20,026 12,443 14 12,536 1,491 2,405 5,503 1,323 8,017 60,237 74,861 20,478 20,428 12,724 21 10,286 325 2,482 6,274 1,320 8,009 59,819 74,701 20,706 20,850 12,964 28 11,097 258 2,524 6,214 1,320 8,001 60,298 74,777 21,071 20,830 12,985 1974 OCT. 2 11,848 2,371 8,498 1,418 8,813 73,859 88,677 23,612 30,235 20,168 9 12,850 2,421 8,764 1,412 8,821 74,667 89,681 22,535 30,085 20,049 16 12,879 230 2,197 8,928 1,415 8,819 73,375 88,588 20,659 30,149 20,295 23 10,859 1,038 2,262 9,012 1,415 8,792 72,958 87,583 19,645 30,11 20,437 30 12,908 370 2,140 8,924 1,408 8,766 72,880 87,698 22,524 29,616 20,039 NOV. 6* 13,528 2,030 8,482 1,432 8,885 74,030 88,944 21,397 29,532 19,858 13* 16,100 2,019 8,432 1.427 8,887 74,693 90,022 23,093 29,310 19,499 20* 13,962 ,340 1,961 8,905 1.428 8,879 75,027 90,080 22,995 28,901 19,345 27* 13,201 575 2,035 8,701 1,447 8,873 74,560 89,336 20,574 29,777 20,017 Outside New York City 1973 NOV. 7 36,454 531 3,477 11,744 3.289 23,412 199,648 268,375 78,034 44,444 30,111 14 39,140 2,208 3,240 11,720 3.290 23,342 199,487 267,564 77,802 43,386 29,255 21 38,505 650 3,171 12,404 3,286 23,300 199,342 267,969 77,261 43,267 29,293 28 37,310 767 3,009 12,384 3,286 23,398 199,919 268,290 79,107 43,213 29,393 1974 OCT. 2 38,207 2,183 3,521 15,112 3,755 24,927 225,002 292,105 77.848 59,270 41,664 9 38,892 311 3,601 16,932 3,733 24,914 226,760 294,145 78,839 58,773 41,158 16 41,021 1,048 3,347 16,598 3,733 24,868 225,330 292,689 78,799 58,545 40,993 23 38,053 869 3,302 16,719 3,728 24,872 223,654 290,772 77,951 58,905 41,275 30 36,988 915 3,308 16,680 3,735 24,910 223,933 291,222 78,528 58,057 40,601 NOV. 6* 42,359 476 3,146 17,361 3,761 25,104 224,102 292,503 77,781 57,556 40,326 13* 41,445 311 3,035 17,596 3,763 25,065 224,995 294,078 79,279 57,836 40,460 20* 40,996 903 3,022 17,892 3,768 25,009 223,779 293,085 79,200 57,419 40,058 27* 41,557 881 2,805 18,218 3,760 24,903 223,799 292,800 79,553 57,391 40,142 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stocks. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- Industry 1974 1974 1974 1974 1973 Nov. Nov. Nov. Nov. Oct. 1st 2nd 27 20 13 6 30 Nov. Oct. Sept. III half half Durable goods manufacturing: Primary metals 1,936 1,862 1,877 1,872 1,871 65 -57 57 63 -23 79 56 -229 Machinery 8,811 8,749 8,813 8,719 8,679 132 -189 323 349 779 1,069 1,848 615 Transportation equipment 3,460 3,454 3,473 3,470 3,519 -59 72 80 340 229 358 587 362 Other fabricated metal products... 2,930 2,936 2,997 3,010 3,029 -99 -60 94 253 236 267 503 71 Other durable goods 5,028 5,029 5,122 5,048 5,061 -33 -63 139 512 560 349 909 -73 Nondurable goods manufacturing: Food, liquor, and tobacco 4,536 4,502 4,436 4,469 4,429 107 237 500 -344 124 -220 733 Textiles, apparel, and leather 3,848 3,925 4,023 4,017 3,988 -140 -247 -122 107 339 570 909 -205 Petroleum refining 1,936 1,889 1,876 1,891 1,900 36 123 32 494 67 -175 -108 203 Chemicals and rubber 3,301 3,364 3,431 3,446 3,390 -89 -47 128 311 355 255 610 -150 Other nondurable goods 2,450 2.475 2,501 2,505 2,497 -47 -144 66 158 222 116 338 91 Mining, including crude petroleum and natural gas 4;797 4,740 4,707 4,646 4,636 161 155 49 290 75 312 387 -156 Trade: Commodity dealers 2,129 2,177 1,999 1,888 1,763 366 389 -85 -195 -630 357 -273 588 Other wholesale 6,525 6.476 6,461 6,426 6,410 115 31 45 135 364 465 829 194 Retail 7,266 7,183 7,169 7,247 7,149 117 196 -43 -219 557 542 1,099 -19 Transportation 6,079 6,079 6,127 6,130 6,108 -29 -17 41 22 34 105 139 80 Communication 2,223 2,234 2,231 2,272 2,198 25 -211 26 -92 326 149 475 -91 Other public utilities 8,045 8,077 7.995 8,078 7,725 320 -284 398 M 1,335 -291 1,044 1,330 Construction 6,362 6,340 6,322 6,345 6,344 18 -100 -12 234 623 34 657 11 Services * 11,880 11,893 11,807 11,799 11,813 67 26 12 137 405 189 594 927 All other domestic loans 10,014 9,887 9.996 10,145 9,997 17 252 84 357 576 541 1,117 682 Bankers' acceptances 1,579 1,494 1,478 1,441 1,453 126 101 -365 381 62 443 -123 Foreign commercial and industrial loans 4,305 4,279 4,249 4,373 4,384 -79 -92 -51 -208 506 105 611 -361 Total classified loans 109,440 109,044 109,090 109,237 108,343 1,097 -174 ,498 4,271 6,972 5,582 12,554 4,480 Total commercial and industrial loans of large commercial banks 129,766 129,376 129,271 129,432 128,520 1,246 1,636 >•4,809 r7,718 5,864 rl 3,582 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 Nov. Oct. Sept. Aug. July June May Apr. Mar. 1st 27 30r 25 28 31 26 29 24 27 III II I IV half Durable goods manufacturing: Primary metals 1,176 1,107 1,133 1,104 1,116 1,105 1,111 1,083 1,064 28 41 -40 -203 I Machinery 4,049 3,970 3,896 3,789 3,572 3,286 3,213 3,145 3,114 610 172 248 186 420 Transportation equipment. 11,,558866 11,,557700 11,,553355 1,419 11,,337733 1,410 1,424 11,,442233 1,365 125 45 81 18 126 Other fabricated metal products 1,113 1,093 1,066 1,000 996 954 960 934 911 112 43 17 23 60 Other durable goods 22,,336611 22,,333399 22,,226688 2,198 22,,116699 22,,110077 22,,001122 11,,997722 11,,991155 161 192 143 -16 335 Nondurable goods manufacturing: Food, liquor, and tobacco. 11,,667744 111,,,666666111 11,,664499 11,,660044 11,,660044 11,,557711 1,584 11,,553333 11,,552299 78 42 38 14 80 Textiles, apparel, and leather 1,179 1,187 1,151 1,171 1,182 1,128 1,120 1,147 1,089 23 39 86 -25 125 Petroleum refining 1,272 1,208 1,097 1,048 996 963 954 934 945 134 18 12 13 30 Chemicals and rubber 1,818 1,820 1,778 1,790 1,760 1,737 1,686 1,690 1,603 41 134 42 9 176 Other nondurable goods.. 11,,117700 11,,118877 11,,220044 11,,118899 1,149 1,171 1,157 11,,114455 11,,113399 33 32 57 -18 89 Mining, including crude petroleum and natural gas. 3,620 3,468 3,339 3,319 3,197 3,130 3,172 3,284 3,245 209 -115 287 -32 172 Trade: Commodity dealers.. 171 157 139 166 155 141 144 144 140 -2 1 13 11 14 Other wholesale 1,431 1,488 1,449 1,419 1,446 1,406 1,404 1,335 1,323 43 83 133 12 216 Retail 2,602 2,578 2,527 2,529 2,512 2,428 2,514 2,543 2,480 99 -52 274 59 222 Transportation 4,379 4,370 4,349 4,322 4,353 4,425 4,474 4,414 4,417 -76 8 97 41 105 Communication 1,076 1,047 1,029 1,021 1,030 1,030 1,033 978 966 -1 64 106 2 170 Other public utilities 3,987 3,810 3,672 3,664 3,539 3,443 3,356 3,196 3,154 229 289 -98 416 191 Construction 2,281 2,237 2,272 2,218 2,183 2,130 1,984 1,908 1,898 142 232 -7 -87 225 Services 5,417 5,340 5,350 5,301 5,275 5,273 5,263 5,223 5,076 77 197 27 330 224 All other domestic loans 33,,225555 33,,221155 33,,112222 33,,007744 33,,005588 33,,001177 22,,994455 22,,993355 22,,880088 105 209 206 17 415 Foreign commercial and industrial loans 2,473 2,487 2,401 2,500 2,565 2,548 2,396 2,369 2,350 -147 198 16 148 214 Total loans 48,090 47,339 46,426 45,845 45,230 44,403 43,906 43,335 42,531 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 • DECEMBER 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder TToottaall CCllaassss ooff bbaannkk,, aanndd qquuaarrtteerr oorr mmoonntthh ddeeppoossiittss,, F b i u n s a i n n c e i s a s l No b n u f s in in a e n s c s ial Consumer Foreign o A th l e l r IIPPCC AH insured commercial banks: 1970—Sept 17.0 88.0 51.4 1.4 10.0 167.9 Dec 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar 18.3 86.3 54.4 1.4 10.5 170.9 June 18.1 89.6 56.2 1.3 10.5 175.8 Sept 17.9 91.5 57.5 1.2 9.7 177.9 Dec 18.5 98.4 58.6 1.3 10.7 187.5 1972—June 17.9 97.6 60.5 1.4 11.0 188.4 Sept 18.0 101.5 63.1 1.4 11.4 195.4 Dec 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar 18.6 102.8 65.1 1.7 11.8 200.0 June 18.6 106.6 67.3 2.0 11.8 206.3 Sept 18.8 108.3 69.1 2.1 11.9 210.3 Dec 19.1 116.2 70.1 2.4 12.4 220.1 1974—Mar 18.9 108.4 70.6 2.3 11.0 211.2 June 18.2 112.1 71.4 2.2 11.1 215.0 Sept.* 17.9 114.2 72.1 2.1 11.0 217.2 Weekly reporting banks: 1971—Dec 14.4 58.6 24.6 1.2 5.9 104.8 1972—Dec 14.7 64.4 27.1 1.4 6.6 114.3 1973—Aug 14.3 59.5 27.3 1.9 6.1 109.1 Sept 14.5 60.6 27.2 1.9 6.5 110.8 Oct 15.0 61.7 27.3 2.0 6.6 112.5 Nov 14.8 62.9 27.5 2.1 6.7 113.9 Dec 14.9 66.2 28.0 2.2 6.8 118.1 1974—Jan 15.2 63.8 28.4 2.3 6.7 116.5 Feb 14.1 62.1 26.9 2.3 6.2 111.5 Mar 14.7 61.5 27.6 2.1 6.3 112.1 Apr 14.7 62.2 29.6 2.1 6.2 114.7 May 14.2 62.3 28.0 2.1 6.1 112.7 Juner 14.1 63.4 28.1 2.0 6.3 113.9 July 14.4 63.5 28.5 2.1 6.5 115.1 Aug 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 Oct.* 14.7 64.6 28.1 2.0 6.4 115.8 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, Apr. 24, June 30, Class of Dec. 31, Dec. 31, Apr. 24, June 30, bank 1972 1973 1974 1974 bank 1972 1973 1974 1974 All commercial.... 559 507 460 All member—Cont. Insured 554 503 478 457 Other large banks 1 69 58 62 63 National member 311 288 282 265 All other member 1 313 294 284 267 State member.... 71 64 64 65 All nonmember 177 155 130 All member 381 352 346 330 Insured 172 152 131 127 Noninsured 5 3 3 i 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

DECEMBER 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 DDDaaattteee TToottaall TToottaall Commercial Real All Commercial All and estate other and other industrial industrial 1974—Aug 7 5555555555555555555,,,,,,,,,,,,,,,,,,,444444444444444444411111111111111111119999999999999999999 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888844444444444444444446666666666666666666 2222222222222222222,,,,,,,,,,,,,,,,,,,555555555555555555577777777777777777773333333333333333333 11111,,,,,444442222222222 444440000011111 11111,,,,,000002222211111 14 5555555555555555555,,,,,,,,,,,,,,,,,,,555555555555555555500000000000000000002222222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888882222222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,666666666666666666622222222222222222220000000000000000000 11111,,,,,444441111133333 444440000088888 11111,,,,,000000000055555 21 5555555555555555555,,,,,,,,,,,,,,,,,,,444444444444444444433333333333333333338888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888833333333333333333334444444444444444444 2222222222222222222,,,,,,,,,,,,,,,,,,,666666666666666666600000000000000000004444444444444444444 11111,,,,,444443333322222 444443333344444 999999999988888 28 5555555555555555555,,,,,,,,,,,,,,,,,,,333333333333333333399999999999999999996666666666666666666 3333333333333333333,,,,,,,,,,,,,,,,,,,000000000000000000033333333333333333333333333333333333333 2222222222222222222,,,,,,,,,,,,,,,,,,,333333333333333333366666666666666666663333333333333333333 11111,,,,,444447777722222 444449999911111 999998888811111 Aug 28 2 r 5555555555555555555,,,,,,,,,,,,,,,,,,,333333333333333333322222222222222222222222222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888883333333333333333333 111111111111111888888888888888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222255555555555555555551111111111111111111 Sept 4 r 5555555555555555555,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333336666666666666666666 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888877777777777777777775555555555555555555 111111111111111888888888888888777777777777777 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222277777777777777777774444444444444444444 11 r 5555555555555555555,,,,,,,,,,,,,,,,,,,333333333333333333344444444444444444448888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,999999999999999999900000000000000000002222222222222222222 111111111111111888888888888888555555555555555 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222266666666666666666661111111111111111111 18r 5555555555555555555,,,,,,,,,,,,,,,,,,,222222222222222222244444444444444444448888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888822222222222222222226666666666666666666 111111111111111777777777777777888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222244444444444444444444444444444444444444 25r 5555555555555555555,,,,,,,,,,,,,,,,,,,222222222222222222288888888888888888882222222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888833333333333333333330000000000000000000 111111111111111777777777777777888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222277777777777777777774444444444444444444 Oct 2 r 5555555555555555555,,,,,,,,,,,,,,,,,,,222222222222222222277777777777777777777777777777777777777 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888866666666666666666667777777777777777777 111111111111111777777777777777999999999999999 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222233333333333333333331111111111111111111 9 r 5555555555555555555,,,,,,,,,,,,,,,,,,,333333333333333333322222222222222222221111111111111111111 2222222222222222222,,,,,,,,,,,,,,,,,,,888888888888888888844444444444444444445555555555555555555 111111111111111888888888888888111111111111111 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222299999999999999999995555555555555555555 16r 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111166666666666666666668888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777799999999999999999993333333333333333333 111111111111111777777777777777888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,111111111111111111199999999999999999997777777777777777777 23 r 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111155555555555555555557777777777777777777 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777788888888888888888880000000000000000000 111111111111111777777777777777555555555555555 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222200000000000000000002222222222222222222 30 r 5555555555555555555,,,,,,,,,,,,,,,,,,,111111111111111111199999999999999999992222222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777766666666666666666668888888888888888888 111111111111111777777777777777888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222244444444444444444446666666666666666666 Nov 6 5555555555555555555...................111111111111111111166666666666666666668888888888888888888 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777755555555555555555556666666666666666666 111111111111111888888888888888222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222233333333333333333330000000000000000000 13 5555555555555555555...................111111111111111111166666666666666666669999999999999999999 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777788888888888888888886666666666666666666 111111111111111888888888888888222222222222222 2222222222222222222,,,,,,,,,,,,,,,,,,,222222222222222222200000000000000000001111111111111111111 20 5555555555555555555,,,,,,,,,,,,,,,,,,,000000000000000000077777777777777777777777777777777777777 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777779999999999999999999 111111111111111888888888888888666666666666666 2222222222222222222,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111112222222222222222222 27 4444444444444444444,,,,,,,,,,,,,,,,,,,999999999999999999922222222222222222220000000000000000000 2222222222222222222,,,,,,,,,,,,,,,,,,,777777777777777777744444444444444444440000000000000000000 111111111111111888888888888888666666666666666 1111111111111111111,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999994444444444444444444 1 To bank's own foreign branches, nonconsolidated revision of data since Aug. 28; "Change in loans sold by nonbank affiliates of the bank, the bank's holding com- banks remaining in panel" should be —$132 million for pany (if not a bank), and nonconsolidated nonbank the total, —$200 million for commercial and industrial, subsidiaries of the holding company. and +$68 million for real estate and all other. The $132 2 Change in series. A comparison of the old and new million decline reflects the elimination of a previous misdata for Aug. 28, 1974, appears in the "Announcements" classification of $199 million in commercial and indussection of the Oct. 1974 BULLETIN. However, the summary trial loans sold. of changes shown there should be revised to reflect the COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on— companies1 Non- All finan- Accepting banks F.R. Banks issuers cial Total Im- Ex- Dealer- Di- com- Dealer- Di- Others ports ports placed rectly- panies' placed rectly- For- into from placed • placed Total Own Bills Own eign United United bills bought acct. corr. States States 13,645 2.332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,8b9 1 ,153 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 34,721 5,655 22,098 6,968 1,226 1,41 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 37,641 4,704 26,602 6,335 2,077 3,154 8,170 2,099 1,629 470 145 548 5,379 2,296 3,289 41,602 5,928 27,688 7,986 2,035 2,833 8,237 2,042 1,731 311 107 589 5,499 2,345 3,222 42,945 5,811 27,977 9,157 1,951 3,021 8,493 2,566 2,129 437 71 604 5,252 2,320 3,340 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 45,491 6,367 29,353 9,771 1,960 3,541 9,101 2,706 2,251 454 68 589 5,738 2,334 3,492 47,164 7,201 29,169 10,794 1,923 3,606 9,364 2,854 2,328 525 69 592 5,850 2,434 3,182 44,690 6,571 28,869 9,250 2,137 3,908 10,166 2,986 2,413 573 296 684 6,200 2,827 2,979 44,677 6,288 28,752 9,697 2,270 4,564 10,692 3,232 2,744 488 216 700 6,544 2,900 2,833 46,171 5,699 30,426 10,046 1,978 5,106 11,727 3,089 2,642 447 373 732 7,532 2,952 2,899 44,846 4,970 29,908 9,968 1,579 5,373 13,174 3,535 3,066 469 304 795 8,540 3,287 3,219 45,561 4,655 30,344 10,562 1,465 5,585 15,686 3,499 2,983 516 218 1,023 10,947 3,589 3,774 r47,967 5,308 r31,774 10,885 r2,425 r6,350 16,167 3,388 2,866 522 277 1,202 11,300 3,585 3,933 49,087 5.333 31,095 12,659 2,185 6,446 16,035 3,347 2,942 405 504 1,459 10,724 3,526 3,806 1 Financial companies are institutions engaged primarily in activities 3 As reported by financial companies that place their paper directly such as, but not limited to, commercial, savings, and mortgage banking; with investors. sales, personal, and mortgage financing; factoring, finance leasing, and 4 Nonfinancial companies include public utilities and firms engaged other business lending; insurance underwriting; and other investment primarily in activities such as communications, construction, manufacactivities. turing, mining, wholesale and retail trade, transportation, and services. 2 As reported by dealers; includes all financial company paper sold in 5 Included in dealer- and directly-placed financial company columns. the open market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 INTEREST RATES • DECEMBER 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Rate Effective date Rate Effective date Rate Effective date 91/2-93/4.- 1974—Apr. 93^-98/10- 1974—June 3.. I ll^B-116/10-1974—Oct. 28. 99/io 10B 113^ 914-93/4.- 10B-10VIO- 7., 111/4-111/iB- 9y 9 4 8/ - io m »- IO 1 -I 0 O y 1 4 /10- 10. 11% 11 B 6/ 10 Nov. 4, 97/10 IOI^B 21. II 1/4-1 11/^B 24. llViB-113/4 11 99-9m%-«99»V/io 4 Apr. 2 2 3 4 . . 1 IO 01 V /4 & B B - -IOV10 25.. lll^B-1134- 14 87/10-83,4 .-9 ICH/10— II8/10 87/10-834> 25. 10^ 1 4— 0% IC H/xo— 26.. 11 1 ^ 18 - / 1 1 1 0 34.- 18, 8%-8'/io- lOl^B 28.. 1134B-118/U 19 8V 8 i- 3 8 4 6 - /,o- 26. 104 1 / 0 10 % - B- July 3. 1134B-118/10. 1034-11 12 25 8 34 >-8 8/10 36. 10%B- 5. 1 18/IO-12B 8%b-88/IO-9 IO6/10- 9. 12B-1214 8 8/10-9 b 103^-11 23. 1034-12B- Dec. 2 9a 121/4 9 >-91/4 May 2 lOVi-lOe/io- 9-914.-9^ 103/4 B-ll Aug. 20. 1034-12B 3 10«/ifr-1034B 9^»-9Vio- Sept. 26. 1034-111/2- 91/2 6 106/10-1034- 1134-12B 914-94/10- 11B 94 9 /^ i/ 9 2. 1 /2-- 1 7 0 .. 1 1 1 1 B -1 114- Oct. 7. 103 1 / 1 4 3 - 4 1 B 11 -1 4 2 - 93/4 13 11 14 B-ll VLO 15. 103/4-111/4- 94/io-9Vi- 17 lii4-ll-4/io 11%- 93/4- -111/i- 1134" 9y 1 4 0 m -9*h*- 20 21. IO 1 3 H 4 / - 2 I - II4- 113/4 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 -9 10-99 100-499 500-999 1,000 and over Aug. May Aug. May 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

DECEMBER 1974 • INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 PPrriimmee FFFiiinnnaaannnccceee ccoommmmeerrcciiaall CCCOOO... PPPrrriiimmmeee FFFeeeddd--ppaappeerr11 pppaaapppeeerrr bbbaaannnkkkeeerrrsss eeerrraaalll 3-month bills 5 6-month bills5 9-to 12-month issues PPPeeerrriiioooddd ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee333 yyeeaarr 90-119 4 to 6 333 tttooo 666 999000 dddaaayyysss 111 Rate Market Rate Market 1 -year iissssuueess 66 days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other 6 issue issue ket yield) 5 1967 55555.....1111100000 44444.....8888899999 44444.....7777755555 44444.....2222222222 44444.....333332222211111 44444.....2222299999 44444.....666663333300000 44444.....6666611111 44444.....7777711111 44444.....8888844444 55555.....0000077777 1968 55555.....9999900000 55555.....6666699999 55555.....7777755555 55555.....6666666666 55555.....333333333399999 55555.....3333344444 55555.....444447777700000 55555.....4444477777 55555.....4444466666 55555.....6666622222 55555.....5555599999 1969 77777.....8888833333 77777.....1111166666 77777.....6666611111 88888.....2222211111 66666.....666667777777777 66666.....6666677777 66666.....888885555533333 66666.....8888866666 66666.....7777799999 77777.....0000066666 66666.....8888855555 1970 77777.....7777722222 77777.....2222233333 77777.....3333311111 77777.....1111177777 66666.....444445555588888 66666.....3333399999 66666.....555556666622222 66666.....5555511111 66666.....4444499999 66666.....9999900000 77777.....3333377777 1971 55555.....1111111111 44444.....9999911111 44444.....8888855555 44444.....6666666666 44444.....333334444488888 44444.....3333333333 44444.....555551111111111 44444.....5555522222 44444.....6666677777 44444.....7777755555 55555.....7777777777 197?. 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--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 Nov. 8.95 8.81 8.50 9.03 9.45 7.585 7.47 7.551 7.52 7.29 7.67 7.65 Week ending— 1974---AAuugg.. 3 . , 11.43 11.23 9.00 12.00 12.29 7.698 7.84 8.055 8.38 8.38 9.19 8.55 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 SSeepptt.. 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 9 9.00 8.88 8.50 8.83 9.63 7.880 7.66 7.857 7.65 7.38 7.81 7.83 16 8.94 8.81 8.50 8.93 9.37 7.604 7.26 7.552 7.39 7.29 7.63 7.67 23 . 8.88 8.73 8.50 9.00 9.34 7.528 7.46 7.427 7.42 7.19 7.55 7.53 30 . 9.00 8.81 8.50 9.41 9.46 7.328 7.45 7.369 7.57 7.26 7.62 7.50 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 • DECEMBER 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings / rating group price ratio price ratio Period United Total 1 States ( tt l ee o rr n mm g )) - 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—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 c9.64 c10. 31 8.78 5.38 Nov.. 6.93 6.54 6.06 7.01 9.21 9.34 9.60 8.89 10.50 9.30 9.59 10.14 8.60 5.13 Week ending- 1974—Oct. 5. 7.31 6.73 6.50 7.10 10.61 10.52 9.81 9.37 10.32 9.56 c9.62 c10.30 8.88 5.87 12. 7.26 6.55 6.20 7.00 10.36 9.84 9.38 10.39 9.58 c9.66 c10.33 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 c9.65 c10.34 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 c9.62 c10.30 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 c9.64 c10.25 8.78 5.03 9. 7.04 6.56 6.10 7.00 9.00 9.28 9.67 8.99 10.49 9.35 9.61 10.20 8.69 4.90 16. 6.92 6.50 6.05 6.90 8.87 9.17 9.61 8.89 10.50 9.26 9.58 10.15 8.61 5.00 23. 6.87 6.46 6.00 6.90 9.17 9.29 9.56 8.84 10.49 9.21 9.56 10.08 8.57 5.39 30. 6.88 6.65 6.10 7.25 9.68 9.38 9.54 8.84 10.52 9.23 9.56 10.02 8.53 5.23 Number of issues 2 1122 2200 55 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- govt.: General obligations only, based on Thurs. figures; from Moody's arately. Because of a limited number of suitable issues, the number Investor Service. (3) Corporate: Rates for "New issue" and "Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered" Aaa utility bonds are weekly averages compiled by the Board 23, 1967, there is no longer an Aaa-rated railroad bond series. of Governors of the Federal Reserve System. Rates for seasoned issues 2 Number of issues varies over time; figures shown reflect most recent are averages of daily figures from Moody's Investors Service. count. Stocks: Standard and Poor's corporate series. Dividend/price ratios are based on Wed. figures; 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 5V4 hours per day, or 27V£ 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

DECEMBER 1974 • SECURITY MARKETS A 31 SECURITY PRICES Common stock prices VVVooollluuummmeee ooofff BBBooonnnddd ppprrriiiccceeesss New York Stock Exchange AAAmmmeeerrr--- tttrrraaadddiiinnnggg iiinnn (((pppeeerrr ccceeennnttt ooofff pppaaarrr))) iiicccaaannn ssstttoooccckkksss SSStttoooccckkk (((ttthhhooouuusssaaannndddsss ooofff PPPPeeeerrrriiiioooodddd Standard and Poor's index New York Stock Exchange index EEExxx--- ssshhhaaarrreeesss))) (1941-43=10) (Dec. 31, 1965 = 50) ccchhhaaannngggeee tttoootttaaalll iiinnndddeeexxx ( G t l U e o o r . n m v S g t . ) - , S l a o t n c a d a te l p A C o A r o a r A t - e Total In tr d 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 111 333 777 000 uuu 111 333 000 ,,, ggg ))) === ... NYSE AMEX 1970 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 17,429 4,234 1972 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1973—Nov 62.71 85.6 62.1 102.03 114.64 39.74 48.30 54.59 60.15 36.31 34.73 67.85 99.91 19,044 3,693 Dec 62.37 86.1 62.9 94.78 106.16 41.48 45.73 50.39 55.12 34.69 33.47 62.49 88.39 19,227 3,553 1974—Jan 60.66 85.2 62.3 96.11 107.18 44.37 48.60 51.39 55.77 36.85 35.89 64.80 95.32 16,506 2,757 Feb 60.83 85.3 62.0 93.45 104.13 41.85 48.13 50.01 54.02 36.26 35.27 62.81 95.11 13,517 2,079 Mar 58.70 83.5 61.3 97.44 108.98 42.57 47.90 52.15 56.80 38.39 35.22 64.47 99.10 14,745 2,123 Apr 57.01 80.2 60.3 92.46 103.66 40.26 44.03 49.21 53.95 35.87 32.59 58.72 93.57 12,109 1,752 May 56.81 77.3 59.7 89.67 101.17 37.04 39.35 47.35 52.53 33.62 30.25 52.85 84.71 12,512 1,725 June 57.11 73.2 59.5 89.79 101.62 37.31 37.46 47.14 52.63 33.76 29.20 51.20 82.88 12,268 1,561 July 55.97 71.9 58.5 82.82 93.54 35.63 35.37 43.27 48.35 31.01 27.50 44.23 77.92 12.459 1,610 Aug 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Sept 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 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 1,880 Nov 57.80 72.6 56.3 71.74 80.17 35.95 34.45 37.98 41.24 28.40 27.60 41.89 63.72 14,341 1,823 Week ending— 1974—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 1,956 9 ... 57.04 71.9 56.3 74.61 83.50 36.82 35.28 39.38 42.90 29.40 28.17 43.11 69.69 17.135 2.044 16 57.87 73.4 56.4 73.43 82.07 36.57 35.25 38.89 42.20 29.10 28.38 42.60 68.70 14,067 1,950 23 . . . 58.24 73.4 61.1 68.49 76.43 34.77 33.46 36.33 39.29 27.23 26.97 40.41 65.24 14,042 1,757 30 58.22 71.8 56.3 69.55 77.68 35.34 33.60 36.83 40.08 27.51 26.64 41.14 63.09 11,777 1,501 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 5,649 4,672 977 4,510 925 156 39 6 13 11,,775599 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 • DECEMBER 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 EEnndd ooff ( l ( l dd ii mm oo eebb nn iill tt ss -- End of period cr N e e d t i t in debit status b T al o a t n al c e ppeerriioodd dd oo oo ff ll -- 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e n t 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n rs s ) 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 Oct.. 38.5 46.7 14.8 5,860 Oct. . 5,690 7.2 10.0 19.9 22.6 22.1 18.2 Nov. 37.5 42.2 20.3 5,882 Nov.. 5,460 5.4 6.1 12.0 16.9 19.5 40.1 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 Mar. 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 Apr., 39.6 42.3 19.4 6,526 Apr.. 5,370 4.4 6.0 9.9 16.5 26.5 37.0 May 37.8 40.0 22.2 6,544 May. 5,180 4.2 5.1 8.5 13.7 23.3 45.3 June 40.3 37.4 22.4 6,538 June. 5,080 4.0 5.0 7.7 12.6 21.8 49.1 July. 40.2 36.5 23.2 6,695 July.. 4,760 4.0 4.8 7.9 13.3 22.2 47.9 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 1 Note 1 appears at the bottom of p. A-30. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments End of period M ga o g r e t - Other G U o . v S t . . SS ll aa oo tt nn cc aa aa dd ttee ll CC rr aa oo aa nn rr tt dd pp ee oo-- Cash O as t s h e e t r s li T a a t o b i n e t i d s a li 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 n u 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 ggoovvtt.. ootthheerr11 general reserve accts. 3 or 3-6 6-9 Over Total less 9 197 0 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 197 1 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19723 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973—Sept.. 72,034 4,200 2,945 957 21,799 1,491 2,345 105,771 95,183 3,134 7,453 1,411 762 589 1,197 3,959 Oct.. . 72,367 4,181 3,007 939 21,276 1,501 2,285 105,557 94,944 3,139 7,474 1,318 771 510 1,096 3,695 Nov.. 72,760 4,424 2,948 925 21,150 1,519 2,264 105,991 95,259 3,201 7,530 1,272 685 479 1,079 3,515 Dec.. 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7,589 1,250 598 405 1,008 3,261 1974—Jan... 73,440 4,161 2,925 936 21,623 1,686 2,312 107,083 96,792 2,665 7,626 1,171 587 439 998 3,196 Feb.., 73,647 4,584 2,846 942 21,923 1,618 2,316 107,877 97,276 2,919 7,681 1,232 562 407 952 3,153 Mar.. 73,957 4,825 2.851 934 22,302 1,634 2,373 108,876 98,557 2,595 7,724 1,302 525 413 929 3,168 Apr.. 74,181 4,425 2.852 951 22,366 1,601 2,347 108,722 98,035 2,943 7,744 1,214 584 401 994 3,193 May. 74,011 4,388 2,750 893 22,241 1,656 2,355 108,295 97,391 3,173 7,731 1,129 608 400 1,014 3,151 June. 74,281 4,274 2,758 880 22,324 1,651 2,488 108;654 98,190 2,688 7,776 1,099 602 328 1,001 3,031 July., 74,541 4,311 2,650 884 22,383 1,402 2,487 108,660 97,713 3,144 7,803 990 586 316 1,076 2,968 Aug.. 74,724 4,031 2,604 879 22,292 1,334 2,519 108,383 97,067 3,475 7,841 949 496 417 977 2,839 Sept.. 74,790 4,087 2,574 876 22,218 1,303 2,573 108,420 97,425 3,089 7,906 932 382 450 904 2,668 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

DECEMBER 1974 • SAVINGS INSTITUTIONS A 33 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a t l s Total U S n ta it t e e d s Sta lo te c a a l n d Foreign Total Bonds Stocks M g M gaa oo gg rr ee tt ss -- ee RR sstt ee aa aa tt ll ee PP lloo oo aa llii nn cc ss yy aa OO ss tt ss hh ee ee ttss rr 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—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 Sept. 258,668 11,718 4,306 3,596 3,816 117,740 96,861 20,879 84,509 8,055 22,202 14,444 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 e u n s s r 1 t t - - Cash Other lia T b o il t i a t l i 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 p L r o o i a n c n e s s s Other ou a p t t s e e t r n a 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 19735 232,104 21,027 19,227 272,358 227,254 17,108 17,100 4,676 6,220 9,532 1973—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.. 248,018 21,134 22,884 292,036 238,185 18,259 24,067 4,232 7,293 9,134 Oct.* 248,614 22,092 23,157 293,863 238,627 18,500 24,489 3,816 8,431 8,123 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 • DECEMBER 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Period Surplus Less: Invest- Receipts Outlays or Public ments by Govt, Treadeficit debt Agency accountsc 1 Less: Equals: sury (-) securi- securi- Special Total operat- Other 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 -710 197 2 208,649 231,876 -23,227 29,131 ,269 6,796 1,623 19,442 1,362 1,108 197 3 232,225 246,526 -14,301 30,881 216 11,712 109 19,275 2,459 -1,613 197 4 264,932 268,392 -3,460 16,918 903 13,673 1,140 3,009 -3,417 898 Half year: 1972—July-Dec., 106,062 118,579 -12,517 22,038 876 5,996 -468 17,386 956 -1,520 1973—Jan.-June, 126,164 127,947 -1,784 8,843 -661 5,716 577 1,889 1,503 -93 July-Dec., 124,253 130,360 -6,107 11,756 477 5,376 845 6,013 -2,202 -191 1974—Jan.-June, 140,679 138,032 2,647 5,162 426 8,297 295 -3,004 -1,215 1,089 Month: 1973—Oc t 17,642 >"23,105 -5,463 1,037 31 -292 -36 1,397 r—2,615 r 183 Nov 20,209 22,099 -1,891 1,561 273 -3,508 3,139 2,202 -1,010 — 48 Dec 21,987 19,686 2,302 5,861 -174 5,584 -3,025 3,128 5,693 — 54 1974—Ja n 23,476 23,671 -195 -1,714 12 -1,069 139 -773 168 544 Feb 20,226 21,030 -804 2,503 -17 2,489 159 -162 -2,877 -84 Mar 16,818 22,905 -6,086 3,813 394 -155 52 4,309 690 191 Apr 29,657 22,273 7,384 -2,597 37 -93 35 -2,502 3,125 1,319 May 19,243 23,981 -4,739 2,773 -28 2,947 -211 8 -5,032 -1,120 June 31,259 24,172 7,087 385 29 4,178 121 -3,886 2,711 239 July 20,939 24,411 -3,472 1,109 -126 -858 198 1,644 -2,705 -658 Aug 23,620 25,408 -1,787 6,447 -56 4,133 -25 2,283 -1,012 83 Sept 28,377 24,712 3,666 -326 -167 -1,311 250 569 3,244 797 Oct 19,633 26,460 -6,827 -1,242 -242 -2,053 -152 721 -6,445 -338 Selected balances Treasury operating balance Borrowing from the public. Less: 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 t i h o e e s s r i 4 - se P c d u u e b r b i l t t i i c e s s A ec g u e r n it c i y e s S i G p s I s e o n u c v v e i t a s e , l s a t c m c e o n u t n O s t t s o h c f e 1 r S n L p o e e t c s e i s s a : 2 l E T q o u t a a l l s: 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 1,856 8,907 310 11,073 449,298 11,770 95,532 23,556 825 341,155 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 1,839 3,781 71 5,691 462,476 11,488 104,548 24,864 825 343,727 1,945 2,666 70 4,681 464,037 11,760 101,040 28,003 825 345.930 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 2,844 7,628 69 10,542 468,184 11,598 105,555 25,117 825 348,285 2,017 5,579 69 7,665 470,687 11,581 108,044 25,276 825 348,123 1,372 6,915 69 8,356 474,500 11,975 107,889 25,328 825 352,433 2,814 8,576 89 11,480 471,903 12,012 107,796 25,363 825 349.931 3,134 3,226 6,448 474,675 11,984 110,743 25,152 825 349,939 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 3,822 2,544 6,454 6475,344 11,895 114,063 25,471 347,706 3,303 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 3,209 5,386 92 8,687 481,466 11,664 116,885 25,696 350,549 787 1,381 71 2,239 480,224 11,422 114,832 25,544 351,270 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 yeai 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

DECEMBER 1974 • FEDERAL FINANCE A 35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C n o c r o p m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u ce ti o ta n x s es Total W he it ld h - F p C E P t u a i a r l o i e n e m g n c s d n - - . 1 N w h i e o t l n h d - - fu R n e d - s t N ot e a t l c G e r r i e 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 ? 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 te c M e r i i p e s - t c s . 4 taxes empl. Fiscal year: 197 1 188,392 76,490 24,262 14,522 86,230 30,320 3,535 39,751 1,948 3,673 3,206 48,578 16,614 2,591 3,735 3,858 197 2 208,649 83,200 25,679 14,143 94,737 34,926 2,760 44,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,225 98,093 27,017 21,866 103,246 39,045 2,893 52,505 2,371 6,051 3,614 64,542 16,260 3,188 4,917 3,921 197 4 264,932 112,064 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. .. 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—Oc t r17,642 r8,756 550 71 r9,235 1,515 462 4,120 24 217 352 4,713 1,459 291 454 437 Nov 20,209 9,811 261 66 10,006 939 287 5,578 825 321 6,724 1,563 301 462 501 Dec 21,987 8,887 362 115 9,134 6,201 105 3,760 89 299 4,149 1,536 224 333 515 1974—Ja n 23,476 9,296 5.076 45 14,327 1,722 160 4,439 170 244 378 232 1,263 304 455 334 Feb 20,226 9,505 945 1,851 8,601 1,066 248 7,080 214 761 346 400 1,315 239 423 429 Mar 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 721 1,211 277 465 377 Apr 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 351 896 1,275 286 371 602 May 19,243 10,083 1,204 5,651 5,641 1,318 218 7,196 311 2,190 339 036 1,391 295 437 343 June 31,259 10,611 4.077 462 14,231 9,269 237 4,757 281 18 329 386 1,423 301 370 517 July 20,939 10,227 957 378 10,806 1,796 310 5,005 418 358 781 1,517 325 418 607 Aug 23,620 10,223 491 229 10,485 1,084 256 7,813 1,363 368 544 1,415 355 453 540 Sept 28,377 9,754 4,323 130 13,947 6,082 435 5,428 240 62 389 119 1 ,465 305 352 543 Oct 19,633 10,106 561 78 10,590 1,717 511 4,558 221 363 142 1,401 347 370 578 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 j 636 -8,379 197 4 268,392 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.-June. 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—Oc t r23,105 '6,620 282 249 503 417 1,261 r461 956 r8,053 1,058 2,135 r468 1,495 -850 Nov 22,099 6,900 276 246 782 424 912 36 805 8,373 1,194 2,401 438 29 -717 Dec 19,686 6,079 219 221 -228 -130 1,064 316 619 8,534 1,143 2,169 498 -816 1974—Ja n 23,671 6,793 351 251 756 -544 886 331 983 9,067 1,204 2,353 636 11,,553322 -929 Feb 21,030 6,509 224 231 138 58 363 198 932 8,979 1,088 2,466 520 11 -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 24,172 8,062 402 447 183 -865 1,574 452 1 ,270 9,675 1 ,017 2,308 655 -1,007 July 24,411 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 Oct 26,460 7,652 62 281 358 280 1,246 752 794 10,282 1,220 2,433 529 1,533 -961 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 • DECEMBER 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 i s f a i b - le Notes Bonds 2 b C v i o e b o n r l n e t d - - s Total N 3 o nm Fo a r r e k i e g t n a ble b S o in a n g v d s - s i S ss p u e e c s i a 5 l & notes 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—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 23.1 63.3 115.3 Nov. 485.4 365.9 277.5 114.6 129.6 33.3 2.3 88.4 23.1 63.6 115.9 1 Includes non-interest-bearing debt (of which $617 million on Nov. 30, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1974, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): despositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern- NOTE.—Based on Daily Statement of U.S. Treasury. See also second ment bonds, and Treasury deposit funds. paragraph in NOTE to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by— Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a t i s l c ag G t U e a r o n n u . v S 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 v c a a d t t s e l . Savi I n n g d s i vidu O al t s 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—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 78.5 201.7 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 Oct I 480.2 138.4 79.4 262.5 53.5 2.5 5.9 11.2 28.8 62.8 21.0 56.6 20.3 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed se- 2 Consists of savings and loan assns., nonprofit institutions, cor- curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt .-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. Beginning in July 1974, total gross public debt includes Federal trust funds; Treasury estimates for other groups. Financing Bank bills and excludes notes issued to the IMF ($825 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • U.S. GOVERNMENT SECURITIES A 37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) >V ithin 1 yea r 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—Sept. 30 272,608 143,349 111,099 32,250 79,410 29,044 14,924 5,879 Oct. 31 273,525 144,334 112,083 32,251 79,407 29,024 14,895 5,865 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—Sept. 30 21,444 2,600 514 2,086 7,783 4,751 4,673 1,637 Oct. 31 . 21,533 2,524 535 1,989 7,868 4,833 4,671 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—Sept. 30 81,035 47,881 38,220 9,661 21,289 9,945 1,433 486 Oct. 31 79,351 46,197 36,535 9,662 21,289 9,946 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—Sept. 30 170,129 92,868 72,365 20,503 50,338 14,348 8,818 3,756 Oct. 31 172,641 95,613 75,013 20,600 50,250 14,245 8,791 3,742 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—Sept. 30 39,042 11,823 3,227 8,596 21,246 4,932 778 263 Oct. 31 39,376 12,318 3,998 8,320 21,106 4,944 760 248 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—Sept. 30 1,452 349 117 232 602 177 229 94 Oct. 31 1,424 338 104 234 602 174 220 90 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—Sept. 30 4,519 519 217 302 979 1,327 1,311 383 Oct. 31 4,545 544 215 329 990 1,343 1,304 363 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—Sept. 30 4,250 2,673 1,606 1,067 1,204 302 51 20 Oct. 31 4,446 2,777 1,755 1,022 1,284 274 71 39 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—Sept. 30 1,729 370 53 317 820 320 193 25 Oct. 31 1,709 353 50 303 820 321 192 24 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—Sept. 30 8,660 4,829 3,502 1,327 1,800 856 884 291 Oct. 31 7,933 4,090 2,752 1,338 1,797 870 883 293 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—Sept. 30 110,477 72,305 63,643 8,662 23,687 6,434 5,372 2,680 Oct. 31 113,208 75,193 66,139 9,054 23,651 6,319 5,361 2,685 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 733 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) 5,582 commercial banks, 476 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 U.S. GOVERNMENT SECURITIES • DECEMBER 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 other1 dealers brokers banks 1973—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 Oct 3,543 2,802 498 193 50 607 1 ,087 928 920 1,150 Week ending— 1974—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 Nov. 6 4,097 3,333 530 180 55 609 1,219 1,178 1,091 1,062 13 4,451 2,908 894 494 154 679 1,159 1,311 1,302 1,391 20 4,598 3,177 800 520 101 616 1,218 1,326 1,438 1,257 27 3,314 2,491 432 336 55 442 857 920 1,096 1,189 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), NOTE.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commerc ;ial banks UU..SS.. PPeerriioodd m t a 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 1 a- ot A h l e l r 1973—Oct 3,073 2,858 93 56 67 904 1973—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 4,802 1,747 1,253 658 1,143 Feb 4,081 2,707 537 647 190 1,435 Feb 4,837 1,545 1,501 533 1,257 Mar 2,587 2,149 50 287 102 1,045 Mar 3,817 1,196 952 485 1,185 Apr 1,536 1,577 -121 62 17 719 Apr 2,449 600 728 287 833 May 495 421 -33 66 41 791 May 1,637 26 486 213 913 June 594 447 52 78 16 1,226 June 2,477 241 884 268 1,083 July 263 219 -50 90 4 935 July 1,710 6 596 216 892 Aug 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 >-4,709 1,312 1,247 480 1,671 Oct 2,870 2,149 430 260 31 1,445 4,621 1,194 1,003 571 1,853 Week ending— Week ending— 11997744——SSeepptt.. 44 3,430 2,663 259 418 90 1,230 11997744——SSeepptt.. 44...... 4,082 953 1,195 491 1,443 3,825 3,067 294 385 78 1,064 5,654 2,030 1,454 606 1,563 is;;;; 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 Oct. 2 1,990 1,106 587 253 44 1,239 Oct. 2. .. 3,596 457 873 336 1,931 9 1,949 1,216 442 234 57 1,179 9. .. 3,685 645 665 456 1,920 16 3,089 2,427 397 236 29 1,354 16. .. 5,013 1,503 1,143 521 1,846 23, . . 3,299 2,654 355 266 24 1,576 23. .. 4,800 1,367 1,128 612 1,693 30, 3,493 2,690 485 303 15 1,754 30. .. 5,274 1,495 1,140 757 1,882 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

DECEMBER 1974 • FEDERALLY SPONSORED CREDIT AGENCIES A 39 OUTSTANDING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, OCTOBER 31 1974 y 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. 8.00 250 Debentures: 5/1/74- 11/4/74 8.65 5/25/73 -- 11/25/74... 7.05 1,000 5/10/71 - 12/10/74.... 6.10 250 6/3/74- 12/2/74 8.90 1/26/71 -- 2/25/75.... 6.10 250 9/10/71 - 12/10/74.... 6.45 450 7/1/74 - 1/2/75 9.25 11/27/72 -2/25/75... 5% 400 11/10/70 - 3/10/75... 7.55 300 8/1/74-2/3/75 9.45 9/21/73 -• 2/25/75 8.20 500 10/12/71 - 3/10/75... 6.35 600 9/3/74 - 3/3/75 9.85 4/12/73 -• 5/25/75.... 7.15 700 4/12/71 -6/10/75 5.25 500 10/1/74-4/1/75 9.55 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.... 7'/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 2/4/74- 11/4/74 8.00 5/28/74 -11/25/75. .. 9.10 700 2/10/72 -6/10/76 5.85 450 3/4/74- 12/2/74 7.15 6/21/74 - 2/25/76.... 8.70 400 9/10/74-6/10/76 10.00 700 5/1/72- 1/2/75 6.05 8/27/71 -2/25/76.... 7% 250 11/10/71 -9/10/76.... 6.13 300 4/1/74 - 1/2/75 8.15 8/27/73 -2/25/76 300 6/12/72-9/10/76 5.85 500 5/1/74-2/3/75 8.80 8/26/74 2/25/76 9.20 600 7/12/71 - 12/10/76.... 7.45 300 6/3/74 - 3/3/75 9.00 6/22/73 -5/25/76.... 7.20 600 12/11/72- 12/10/76... 6.25 500 7/1/74-4/1/75 9.25 11/27/73 --5/25/76... 7.45 300 6/10/74-12/10/76. ... 8.45 600 8/1/74- 5/1/75 9.45 7/25/73 -8/25/76.... 7.80 500 2/13/62 - 2/10/77. 4% 198 9/3/74 - 6/2/75 9.80 9/25/74 -8/25/76.... 9.55 700 9/11/72 - 3/10/77 6.30 500 10/1/74-7/1/75 9.60 10/25/74-- 11/26/76. . 8.60 600 3/11/74- 3/10/77 7.05 400 1/3/72 - 7/1/75 5.70 7/25/74 -11/26/76... 9.55 500 12/10/70 - 6/10/77. . . 6.38 250 3/1/73 - 1/5/76 6.65 10/25/73 --2/25/77... 7.20 500 5/10/71 -6/10/77 6.50 150 7/2/73 - 1/3/77 7.10 6/21/74- 5/25/77.... 8.70 500 12/10/73 -6/10/77.... 7.20 500 7/1/74-4/4/77 8.70 6/25/71 -5/25/77.... 6.95 200 9/10/71 -9/12/77 6.88 300 1/2/74 - 1/3/78 7.10 4/12/73 -8/25/77 7.15 300 9/10/73 -9/12/77 7.85 400 5/28/74 -8/25/77. .. . 8.80 600 7/10/73 - 12/12/77.... 7.25 500 2/26/73 - 11/25/77... 6% 300 10/1/73 - 12/12/77.... 7.55 500 Federal land banks 11/27/73 • - 11/25/77.. 7.45 300 6/10/74-3/10/78 8.45 650 Bonds: 8/26/74 -11/25/77. .. 9.15 700 6/12/73 - 6/12/78 7.15 600 2/20/70 - 1/20/75 8H 9/25/74 -2/27/78.. . . 9.38 400 3/11/74 -9/11/78 7.15 550 4/23/73 - 1/20/75 7.15 9/21/73 -5/25/78 7.60 500 10/12/71 - 12/11/78. . 6.75 300 4/20/65 - 4/21/75 4H 8/26/74 -11/27/78. .. 9.10 500 7/10/74- 12/11/78.... 8.95 300 7/20/73 -4/21/75 7.65 6/21/74 -2/26/79. .. . 8.65 600 12/10/73 - 3/12/79.... 7.25 500 2/15/72 - 7/21/75 5.70 9/25/74 -2/26/79.... 9.45 600 9/10/73 -6/11/79 7.85 300 4/22/74-7/21/75 8.30 10/25/74 -- 5/25/79 . .. 8.65 500 9/10/74-6/11/79 9.80 600 7/20/71 - 10/20/75 7.20 5/28/74 -5/25/79 8% 400 6/12/72-9/10/79 6.40 300 10/23/73 - 10/20/75 7.40 7/25/74 -8/27/79 9.50 500 12/10/71 - 12/10/79. . 6.55 350 4/20/72 - 1/20/76 6V4 3/25/70 - 2/25/80... 7.75 350 2/10/72 - 3/10/80 6.88 250 7/22/74 - 1/20/76 9.20 2/25/74 - 2/25/80.... 7.05 300 6/10/74-6/10/80 8.50 450 2/21/66 - 2/24/76 5.00 10/15/70 - 10/15/80.. 7,80 200 2/16/73 - 7/31/80 5.19 1 1/22/73 - 4/20/76 6^ 10/27/71 - 11/27/81. 6.60 200 2/16/73 - 7/31/80 3.18 9 4/22/74 - 4/20/76 814 10/25/74 --11/25/81.. 8.65 400 10/1/73 -9/10/80 7.50 400 7/20/66 - 7/20/76 53/6 4/12/73 -5/25/83.... 7.30 200 1/16/73 - 10/30/80.... 4.46 5 1/21/74-7/20/76 7.05 5/28/74 -5/25/84 8% 300 12/11/72 - 12/10/80... 6.60 300 4/23/73 - 10/20/76 7.15 10/25/73 • - 11/26/93. . 73/g 400 6/29/72- 1/29/81 6.15 156 4/22/74 - 4/20/77 8% 3/12/73 - 3/10/81 7.05 350 7/20/73 - 7/20/77 7% Federal Home Loan 4/18/73 -4/10/81 6.59 26 10/20/71 - 10/20/77 6.35 Mortgage Corporation 3/21/73 - 5/1/81 4.50 18 10/21/74- 1/23/78 8.70 Bonds: 3/21/73 - 5/1/81 5.77 2 2/20/63 - 2/20/73-78.... 41/g 5/29/73 - 8/25/76 7.05 400 1/21/71 - 6/10/81.... 7.25 250 5/2/66 - 4/20/78 5H 5/11/72 -2/25/77 6.15 350 9/10/71 -9/10/81 7.25 250 7/20/72 - 7/20/78 6.40 11/19/70 - 11^27/95 8.60 140 9/10/74-9/10/81 9.70 300 7/22/74 - 7/20/78 9.15 7/15/71 -8/26/96 7.75 150 3/11/74-12/10/81.... 7.30 250 10/23/73 - 10/19/78 7.35 5/11/72- 5/26/97 7.15 150 7/10/74-3/10/82 8.88 300 2/20/67 - 1/22/79 5.00 6/28/72 -5/1/82 5.84 58 1/21/74 - 1/22/79 7.10 Federal National Mortgage 2/10/71 - 6/10/82 6.65 250 9/15/72 - 4/23/79 6.85 Association— 9/11/72 - 9/10/82 6.80 200 2/20/74 - 7/23/79 7.15 Secondary market 12/10/73 - 12/10/82. .. 7.35 300 10/23/72 - 10/23/79 6.80 operations 3/11/71 -6/10/83 6.75 200 1/22/73 - 1/21/80 6.70 Discount notes 3,646 6/12/73 -6/10/83 7.30 300 7/20/73 - 7/21/80 71/z Capital debentures: 11/10/71 -9/12/83.... 6.75 250 10/21/74- 10/20/80 8.70 4/1/70 - 4/1/75 8.00 200 4/12/71 -6/11/84 6.25 200 2/23/71 -4/20/81 6.70 9/30/71 - 10/1/96 4.38 248 12/10/71 - 12/10/84. . 6.90 250 7/22/74- 7/20/81 9.10 10/2/72- 10/1/97 7.40 250 3/10/72 - 3/10/92.... 7.00 200 4/20/72 - 4/20/82 6.90 6/12/72-6/10/92 7.05 200 4/23/73 - 10/20/82 7.30 Mortgage-backed bonds: 12/11/72- 12/10/97. . . 7.10 200 10/23/73 - 10/20/83 7.30 6/1/70 - 6/2/75 8.38 250 3/14/73 - 1/15/81 3.58 53 3/14/73 - 1/15/81 5.48 5 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 • DECEMBER 1974 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad- Cash Mem- Deben- Loans Loans vances Invest- and Bonds ber Capital Mort- tures to and Mortto ments de- and de- stock gage and cooper- Bonds dis- Bonds gage Bonds mem- posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 197 0 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 197 1 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 197 2 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973—Oct.. 14,799 3,498 106 15,362 1,270 2,107 23,348 22,243 2,711 2,728 7,130 6,901 10,781 9,838 Nov. 14,866 3,649 77 15,362 1,545 2,112 23,912 22,404 2,662 2,704 7,029 6,890 10,926 9,838 Dec.. 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974—Jan.. 15,188 2,843 121 14,556 1,692 2,246 24,424 23,131 3,123 2,741 7,163 6,956 11,245 10,048 Feb.. 14,904 2,680 116 13,906 1,936 2,294 24,541 23,092 3,211 2,828 7,277 7,029 11,402 10,282 Mar., 14,995 2,779 124 13,906 2,027 2,306 24,888 23,515 3,143 2,878 7,545 7,162 11,467 10,282 Apr.. 16,020 1,615 82 13,902 2,067 2,337 25,264 23,668 2,891 2,810 7,850 7,403 11,878 10,843 May. 17,103 1,956 96 14,893 2,215 2,376 25,917 25,089 2,694 2,674 8,195 7,585 12,142 10,843 June. 17,642 2,564 115 16,393 2,158 2,413 26,559 25,232 2,733 2,449 8,479 7,860 12,400 10,843 July. 18,582 2,578 150 17,390 1,954 2,450 27,304 25,878 3,008 2,477 8,706 8,212 12,684 11,782 Aug.. 19,653 2,052 80 18,759 1,935 2,495 28,022 26,639 3,026 2,622 8,548 r8,381 12,941 11,782 Sept., 20,772 2,681 135 r20,647 2,160 2,543 28,641 r27,312 3,092 2,835 8,931 8,502 13,185 11,782 Oct.. 21,409 3,224 105 22,058 2,129 2,580 29,139 27,543 3,598 2,855 8,838 8,482 13,418 12,427 NOTE.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB's, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB's. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FN MA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds PPPeeerrriiioooddd amount deliv- Special ered3 TToottaall G o e b a n l l e i- r- R n e u v e e - HA A1 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 a d ti u o - n b R r a o id n a d g d e s s i U ti t e i s l- 4 H in o g u 5 s- V a a e n t id e s r ' - O p p o t u h s r e e - s r gations auth. 1970 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 1973 23,970 12,257 10,632 1,022 58 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 1973—Aug.... 1,657 1,067 588 2 529 498 630 1,602 311 30 352 290 618 Sept... 1,750 721 741 285 2 236 838 675 1,653 327 66 579 384 298 Oct 2,313 1,344 964 6 337 842 1,135 2,163 299 142 412 251 1,060 Nov... 2,257 866 1,383 9 243 1,247 766 1,929 356 42 596 247 687 Dec.... 2,089 919 995 173 1 450 1,022 616 1,954 372 165 487 344 582 1974—Jan.r.. 2,198 1,402 794 2 208 825 1,163 2,129 595 36 372 56 1,070 Feb.. 1,934 1,155 778 1 473 523 937 1,869 449 53 611 39 717 Mar.r. 2,002 1,170 600 227 5 344 783 871 1,887 366 258 355 241 667 Apr.r.. 2,381 1,703 667 11 360 855 1,155 2,333 508 9 594 178 1,044 May r.. 2,246 1,147 1,091 8 443 1,025 770 2,181 394 108 689 7 983 June r.. 2,009 1,048 722 234 5 582 557 865 1,908 205 62 562 287 792 July.. 1,497 885 605 7 888 164 438 1,486 314 58 154 960 AAuugg........ 11,,008855 556688 551177 114411 338877 555566 1,046 221 84 256 15 470 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

DECEMBER 1974 • SECURITY ISSUES A 41 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate PPPPeeeerrrriiiioooodddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. .. 22 aa GG gg UU ee oo nn .. vv SS cc tt .. yy .. 33 aa (( nn UU SS dd tt .. aa SS lloo tt .. ee )) cc 44 aa ll OOtthheerrss TToottaall Total P o u ff b e l r ic e l d y P p ri l v a a ce te d l y Preferred Common 197 0 88,666 14,831 16,181 17,762 949 3333333388888888,,,,,,,,999999994444444455555555 3333333300000000,,,,,,,,333333331111111155555555 2222222255555555,,,,,,,,333333338888888844444444 44444444,,,,,,,,999999993333333311111111 11111111,,,,,,,,333333339999999900000000 77777777,,,,,,,,222222224444444400000000 197 1 105,233 17,325 16,283 24,370 2,165 4444444455555555,,,,,,,,000000009999999900000000 3333333322222222,,,,,,,,111111112222222233333333 2222222244444444,,,,,,,,777777777777777755555555 77777777,,,,,,,,333333335555555544444444 33333333,,,,,,,,666666667777777700000000 99999999,,,,,,,,222222229999999911111111 197 2 96,522 17,080 12,825 23,070 1,589 4444444411111111,,,,,,,,999999995555555577777777 2222222288888888,,,,,,,,888888889999999966666666 1111111199999999,,,,,,,,444444443333333344444444 99999999,,,,,,,,444444446666666622222222 33333333,,,,,,,,333333336666666677777777 99999999,,,,,,,,666666669999999944444444 197 3 100,417 19,057 23,883 22,700 1,385 3333333333333333,,,,,,,,333333339999999911111111 2222222222222222,,,,,,,,222222226666666688888888 1111111133333333,,,,,,,,666666664444444499999999 88888888,,,,,,,,666666662222222200000000 33333333,,,,,,,,333333337777777722222222 77777777,,,,,,,,777777775555555500000000 1973—Jul y 7,643 490 2,471 1,992 60 22222222,,,,,,,,666666663333333311111111 11111111,,,,,,,,888888887777777700000000 888888885555555577777777 11111111,,,,,,,,000000001111111133333333 222222222222222266666666 555555553333333366666666 Aug 8,019 3,097 1,600 1,474 42 11111111,,,,,,,,888888880000000066666666 11111111,,,,,,,,333333338888888822222222 777777779999999922222222 555555559999999900000000 9999999944444444 333333333333333300000000 Sept 8,091 2,432 2,100 1,630 15 11111111,,,,,,,,999999991111111155555555 11111111,,,,,,,,333333336666666666666666 666666668888888844444444 666666668888888822222222 111111111111111199999999 444444443333333300000000 Oct 8,924 485 2,612 2,232 196 33333333,,,,,,,,333333339999999988888888 22222222,,,,,,,,333333335555555588888888 11111111,,,,,,,,888888880000000055555555 555555555555555533333333 333333335555555555555555 666666668888888855555555 Nov 12,553 4,521 2,200 2,224 45 33333333,,,,,,,,555555556666666633333333 22222222,,,,,,,,222222225555555577777777 11111111,,,,,,,,666666666666666699999999 555555558888888899999999 666666663333333377777777 666666666666666688888888 Dec 6,635 148 1,032 1,966 251 33333333,,,,,,,,222222223333333388888888 22222222,,,,,,,,444444446666666699999999 11111111,,,,,,,,555555555555555522222222 999999991111111177777777 111111119999999966666666 555555557777777733333333 1974—Jan. 6 33333333,,,,,,,,333333334444444411111111 22222222,,,,,,,,999999990000000088888888 22222222,,,,,,,,111111111111111155555555 777777779999999944444444 111111115555555522222222 222222228888888800000000 Feb 22222222,,,,,,,,666666669999999900000000 22222222,,,,,,,,111111110000000044444444 11111111,,,,,,,,666666668888888833333333 444444442222222211111111 222222226666666688888888 333333331111111188888888 Mar 33333333,,,,,,,,222222221111111166666666 22222222,,,,,,,,444444445555555577777777 22222222,,,,,,,,000000002222222200000000 444444443333333377777777 333333339999999988888888 333333336666666611111111 Apr 33333333,,,,,,,,000000006666666677777777 22222222,,,,,,,,222222226666666655555555 11111111,,,,,,,,555555559999999944444444 666666667777777711111111 333333335555555566666666 444444444444444466666666 May 33333333,,,,,,,,111111115555555511111111 22222222,,,,,,,,999999994444444433333333 22222222,,,,,,,,333333335555555500000000 555555559999999933333333 6666666655555555 111111114444444422222222 June 22222222,,,,,,,,999999996666666688888888 22222222,,,,,,,,444444444444444400000000 11111111,,,,,,,,999999993333333366666666 555555550000000022222222 111111111111111133333333 444444441111111155555555 July 33333333,,,,,,,,222222222222222244444444 22222222,,,,,,,,555555556666666655555555 22222222,,,,,,,,000000008888888866666666 444444447777777788888888 111111118888888811111111 444444447777777788888888 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 a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds 197 0 9.192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 197 1 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 197 2 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 197 3 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 1973—July.. 364 169 139 112 250 1 651 269 244 60 223 Aug.. 230 49 149 129 83 15 419 90 320 5 182 Sept.. 270 78 149 96 140 2 334 252 228 16 244 Oct.. , 472 52 63 147 114 342 608 633 46 734 Nov.. 383 93 61 92 241 584 496 296 499 692 Dec.. 485 18 145 285 226 569 319 350 27 693 1974—Jan. « 867 29 136 124 89 1,192 249 142 4 485 Feb.. 354 36 54 143 5 536 293 372 25 783 Mar.. 480 161 52 71 76 850 449 310 21 690 Apr.. 1.193 9 238 56 6 446 685 289 5 95 May. 839 15 330 71 44 837 75 660 3 235 June. 420 44 317 139 5 16 859 288 352 1 489 July.. 961 40 228 93 58 317 283 240 177 761 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 I year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organzations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 SECURITY ISSUES • DECEMBER 1974 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 42,306 10,224 32,082 27,065 8,003 19,062 15,242 2,222 13,018 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 9,140 2,470 6,669 5,769 1,664 4,106 3,370 806 2,564 6,532 2,150 4,382 4,521 1,579 2,941 2,012 571 1,441 10,711 4,378 6,334 7,013 3,786 3,227 3,698 591 3,107 8,973 2,031 6,942 6,810 1,442 5,367 2,163 588 1,575 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 3 utility cation and financial 1 & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B n on ot d e 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) Year MMoonntthh Sales 1 Redemp- Net Total 2 Cash Other Sales 1 Redemp- Net Total 2 Cash Other tions sales position 3 tions sales position 3 1962 2,699 1,123 1,576 21,271 1,315 19,956 1973—Oct.. . 305 559 -254 51,952 4,168 47,784 1963 2,460 1,504 952 25,214 1,341 23,873 Nov... 502 542 -40 45,814 4,126 41,688 1964 3,404 1,875 1,528 29,116 1,329 27,787 Dec... 349 392 -43 46,518 4,002 42,516 1965 4,359 1,962 2,395 35,220 1.803 33,417 1974—Jan.. . 334 325 9 47,094 4,226 42,863 1966 4,671 2,005 2,665 34,829 2,971 31,858 Feb... 215 303 -88 45.958 4,447 41,511 1967 44,,667700 22,,774455 1,927 44,701 22,,556666 42,135 Mar... 297 346 -49 44,423 4,406 40,017 Apr... 262 327 -65 42,679 4,426 38,253 1968 6,820 3,841 2,979 52,677 3,187 49,490 May.. 323 320 3 41,015 4,389 36,626 1969 6,717 3,661 3,056 48,291 3,846 44,445 June. . 337 276 61 40,040 4,461 35,579 1970 44,,662244 22,,998877 1,637 4477,,661188 33,,664499 4433,,996699 July. . 442 352 90 37,669 4,609 33,060 Aug... 446 339 127 35,106 4,953 30,153 1971 5,145 4,751 774 56,694 3,163 53,531 Sept. . 499 292 207 31,985 5,078 26,907 1972 4,892 6,563 -1,671 59,831 3,035 56,796 Oct.... 816 311 505 37,115 5,652 31,463 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

DECEMBER 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 d u f t i it s e s - d co c a n a t l s p i l o o u i n t w m a - l p - Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h - s t U p ri r n b o d u f i t i s t 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! ances t 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 Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i , - I t n o v r e ie n s - Other Total F in e c d o e m ra e l Other ties G U o . v S t . . i Other G U o . v S t . . 1 Other taxes 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 III 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 III 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 i 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 Durable du N r o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her nn CC ii oo cc mm aatt mm iioonn uu ss -- OOtthheerr ii TT AA ((SS oo .. .. RR tt AA aa .. .. )) ll 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—11 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 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV2 31.44 6.69 6.73 .83 .72 .45 .63 4.82 .90 9.' 67 114.40 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 • DECEMBER 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 banks1. 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 124,970 142,275 167,049 185,706 188,051 191,529 197,324 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 2,902 2,770 2,490 1,462 1,330 1,189 1,194 Multifamily1 2,304 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 1,300 ,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., 1 195 323 364 434 472 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

DECEMBER 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 holdings transactions commitments holdings transactions commitments (during period) (during period) FHA- VA- Pur- Made Out- FHA Con- Pur- Made Total i in- guar- chases Sales during stand- Total VA ven- chases Sales during sured anteed period ing tional period 15,492 11,063 4,429 5,079 20 8,047 5,203 325 325 325 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,298 408 1,606 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 23,348 16,510 6,101 659 264 8,918 2,527 1.742 785 113 63 23,912 16,734 6,294 656 200 8,690 2,565 1,746 819 46 45 24,175 16,852 6,352 410 40 158 7,889 2,604 1.743 861 50 43 24,424 17,008 6,348 350 110 6,715 2,621 1,736 885 34 26 24,529 17,050 6,336 242 489 6,768 2,625 1,730 895 21 49 24,875 17,315 6,340 462 1,646 7,913 2,638 1,724 914 29 595 25,263 17,450 6,503 526 2,154 9,292 2,722 1,756 967 101 400 25,917 17,725 6,794 821 1,145 9,475 2,986 1,827 1,159 281 1,486 26,559 17,966 7,079 770 537 9,019 3,191 1,877 1,314 222 628 27,304 18,250 7,384 886 1,175 9,044 3,309 1,883 1,426 129 1,127 28,022 18,526 7,704 868 1,202 9,115 3,451 1,886 1,565 155 81 28,641 18,758 7,994 760 997 9,043 3,713 1,896 1,817 273 69 29,139 18,966 8,206 612 878 8,987 4,107 1,910 2,197 410 30 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 Terms1 Yields (per cent) in primary market Contract Fees and Loan/price Purchase Loan rate (per charges Maturity ratio price (thous. amount cent) (per cent) 2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series3 series 4 8.27 1.03 25.1 71.7 35.5 25.2 8.44 8.52 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.12 1.20 26.1 76.9 38.5 29.0 8.31 8.80 8.22 1.08 26.0 75.5 38.9 28.8 8.39 8.75 8.31 1.12 25.6 75.5 37.7 28.0 8.49 8.75 8.33 1.16 26.4 76.3 38.8 28.9 8.52 8.65 8.40 1.33 25.9 76.5 37.8 28.5 8.62 8.55 8,43 1.35 26.4 77.3 39.1 29.5 8.64 8.60 8.47 1.21 26.1 77.3 38.5 29.2 8.67 8.90 8.55 1.20 25.8 76.8 37.9 28.8 8.74 9.15 8.65 1.25 26.3 76.9 39.7 30.1 8.85 9.25 8.75 1.28 26.1 74.4 40.5 29.6 8.96 9.40 8.87 1.32 26.4 75.3 40.2 29.5 9.09 9.60 8.97 1.30 26.1 74.8 42.4 31.1 9.19 9.80 8.95 1 .37 26.7 74.7 42.3 30.7 9.17 9.70 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 • DECEMBER 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction IItteemm 1974 July 1 July 15 July 29 Aug. 12 Aug. 26 Sept. 9 Sept. 23 Oct. 7 Oct. 21 Nov. 4 Nov. 18 Dec. 2 Amounts (millions of dollars): Govt.-underwritten loans Offered1 271.7 379.5 151.6 207.9 309.6 176.1 57.2 46.6 34.5 47.8 25.7 52.5 Accepted 103.0 193.5 73.4 97.7 93.0 98.6 38.2 29.7 26.0 24.7 17.6 23.3 Conventional loans Offered i 39.7 60.4 36.8 45.8 59.0 46.5 22.1 26.1 14.1 20.4 20.6 24.0 Accepted 23.6 29.9 18.1 19.4 24.9 30.9 19.0 23.3 12.2 12.1 6.8 12.0 Average yield (per cent) on shortterm commitments2 Govt.-underwritten loans 9.65 9.90 9.98 10.12 10.38 10.59 10.56 10.32 10.11 9.93 9.81 9.61 Conventional loans 9.76 9.90 10.02 10.16 10.42 10.71 10.66 10.46 10.27 10.11 9.92 9.80 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, Holder 1971 1972 1973 1973 1973 1974 All holders 120.8 131.1 133.6 133.8 135.0 136.7 FHA 81.3 86.4 86.4 85.6 85.0 85.0 VA 39.5 44.7 47.2 48.2 50.0 51.7 Commercial banks 11.3 11.7 11.7 11.7 11.5 11.1 FHA 8.3 8.5 8.5 8.4 8.2 7.8 VA 3.0 3.2 3.2 3.3 3.3 3.3 Mutual savings banks. 28.2 28.6 28.7 28.6 28.4 28.2 FHA 16.1 16.0 15.8 15.7 15.5 15.3 VA 12.1 12.6 12.9 12.9 12.9 12.9 Savings and loan assns 24.3 28.9 V F A H A 1 1 3 0 . . 7 6 1 13 5 . . 5 4 29.8 30.1 29.7 29.8 Life insurance cos 15.8 14.7 14.0 13.7 13.6 13.3 FHA 10.8 10.0 9.5 9.3 9.2 9.0 VA 5.0 4.7 4.5 4.4 4.4 4.3 Others 41.2 47.2 49.4 50.0 52.1 54.3 FHA 32.4 36.5 VA 10.7 NOTE.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total o N f u l m oa b n er s ( c m o ( a i m d l m o l m i l o o la u i n t r n s t s e t ) d o f ( o t f h a m o L d u o o o s l a u l a n a n n r t d s s ) ( C p in o e r 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 a t c a i e n o l n - u t e ) C ( a p t p e i r o it n a c l e r i n z a a t t ) e - co D r v a e e t r b i a o t ge 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 229 541.8 2,366 8.65 23/7 73.7 9.5 1.31 230 415.7 1,807 8.72 24/3 74.0 9.4 1.27 255 541.9 2,125 8.77 23/5 73.6 9.2 1.26 176 351.5 1,997 8.94 22/6 73.7 9.3 1.23 161 203.3 1,263 9.09 22/6 73.6 9.4 1.24 95 313.5 3,300 9.17 22/2 74.3 9.7 1.25 55 152.8 2,778 9.18 23/3 74.8 9.9 1.27 61 91.5 1,501 9.07 20/11 73.7 9.7 1.24 90 209.4 2,327 9.10 23/1 73.6 9.8 1.33 117 238.8 2,041 8.99 21/11 74.2 9.6 1.31 141 306.7 2,175 9.02 21/9 73.8 9.9 1.33 148 352.4 2,381 9.31 21/11 74.2 10.0 1.30 147 287.5 1,956 9.35 20/10 75.7 10.1 1.24 See NOTE on p. A-45. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 loansi 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 2,046 174,840 143,610 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 2,277 188,023 155,328 52,736 49,986 8,287 44,319 32,695 13,003 7,027 2,156 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 7,113 071 1,336 9,280 60,556 51,240 13,837 9,277 4,423 4,419 4,501 236 1,497 10,050 70,640 59,783 16,320 10,776 5,786 5,288 5,122 544 1,789 11,158 81,248 69,495 19,038 12,218 7,223 6,649 6,054 982 2,144 12,187 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 84,887 73,372 19,246 12,195 7,709 7,749 6,530 4,480 2,376 13,087 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 • DECEMBER 1974 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other consumer End of period Auto- goods paper Home Per- Mis- Auto- Other Total mobile improve- sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders i dealers outlets Mobile Other loans homes 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—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 Oct.. 38,901 12,458 3,597 4,658 1,054 17,134 25.204 21,893 3,311 17,851 296 17,555 1 Savings and loan associations and mutual savings banks. See also NOTE to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies Month New Mobile Other Personal Credit- Automobiles Other automo- homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1972—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 r20.57 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 r19.24 •20.78 Aug. 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept. 11.31 11.72 13.20 13.41 r17.15 12.84 17.61 13.42 19.30 20.93 Oct. 11.53 11.94 13.28 13.60 17.17 12.97 17.78 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

DECEMBER 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—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 Oct. 13,626 3,369 5,948 348 3,961 5,600 3,229 2,160 2,637 Repayments 196 6 77,480 25,619 24,080 2,118 25,663 27,716 24,952 9,342 15,470 196 7 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 196 8 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 196 9 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 197 0 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20,742 197 1 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 197 2 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 197 3 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1973—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 5,596 308 758 5,479 3,452 1,827 2,448 Apr.. 13,026 3,498 5,483 312 733 5,470 3,375 1,784 2,397 May, 13,407 3,601 5,607 315 884 5,573 3,528 1,855 2,451 June, 13,301 3,577 5,615 335 774 5,564 3,405 1,835 2,497 July. 13,310 3,563 5,610 320 817 5.541 3,513 1,819 2,437 Aug. 12,882 3,443 5,444 309 686 5,463 3,166 1,851 2,402 Sept. 13,412 3,604 5,700 279 829 5,808 3,371 1,723 2,510 Oct.. 13,224 3,470 5,499 321 3,934 5.542 3,250 1,962 2,470 Net change 1966 5,352 1,573 2,249 105 1,425 2,357 945 1,026 1,024 1967 3,183 -214 1,657 167 1,573 1,833 -220 901 669 1968 8,317 3,152 2,237 231 2,697 4,784 1,498 1,501 534 1969 9,360 2,579 3,687 374 2,720 4,485 1,772 2,005 1,098 1970 4,959 -343 3,152 457 1,693 2,977 -168 1,366 784 1971 9,231 3,480 2,888 343 2,520 5,842 1,205 1,933 251 1972 16,037 5,465 5,727 788 4,057 8,543 3,205 2,490 1,799 1973 20,105 7,001 7,450 1,151 4,503 9,712 5,155 3,056 2,182 1973—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 Oct 402 -101 449 27 27 58 -21 198 167 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. • DECEMBER 1974 MARKET GROUPINGS (1967 = 100) 1967 1973 1973 1974 pro- aver- GGrroouuppiinngg por- aaggee Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.35 Nov.e Total index 100.0 125.6 127.5 126.5 125.4 124.6 124.7 124.9 125.7 125.8 125.5 125.2 125.6 124.9 122.0 62.21 123.4 125.3 124.0 122.9 122.4 122.6 122.7 123.8 124.0 124.0 123.5 123.7 123.0 121.4 48.95 121.3 123.7 122.6 121.2 120.6 121.0 120.8 122.4 122.6 122.8 122.1 122.8 122.6 120.9 Consumer goods 28.53 131.7 133.5 131.3 129.2 128.3 128.5 128.5 129.7 130.2 130.0 129.8 129.4 128.6 126.6 Equipment 20.42 106.7 110.1 110.1 109.8 109.9 110.1 110.1 112.2 112.0 113.0 111.4 113.8 114.2 113.1 Intermediate products 13.26 131.1 131.1 129.1 129.2 129.1 128.2 129.4 129.2 128.9 127.8 128.6 126.9 124.4 122.7 Materials 37.79 129.3 131.5 130.7 129.7 128.3 128.8 128.7 129.1 128.8 128.0 128.5 128.8 128.0 122.9 Consumer goods 7.86 139.0 138.5 134.6 128.2 126.4 128.5 130.9 132.8 133.5 131.6 131.8 128.6 126.8 120.4 Automotive products 2.84 136.8 133.7 120.6 108.0 106.6 108.0 113.8 116.1 117.3 113.5 114.9 111.6 116.7 106.8 Autos 1.87 125.4 124.8 106.2 90.0 86.4 86.3 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91.0 Auto parts and allied goods .97 158.9 150.9 147.8 142.6 145.5 149.8 144.7 146.5 151.3 136.9 137.6 134.5 132.6 137.3 Home goods 5.02 140.3 141.2 142.5 139.6 137.5 140.1 140.6 142.3 142.7 141.8 141.2 138.3 132.6 128.0 Appliances, TV, and radios 1.41 144.8 140.4 147.9 138.4 131.9 135.8 135.2 137.7 141.2 139.3 139.1 133.2 121.2 .92 115566..99 115544..77 117722..22 115533..99 114488..22 115500..00 114488..66 115522..66 115555..33 151.7 115566..22 115500..22 114400..11 .49 Carpeting and furniture 1.08 150.0 152.7 150 1 153.5 153.3 154.5 158.2 157.4 157.2 155.3 157.1 155.4 154.1 Misc. home goods 2.53 133.6 136.8 136.3 134.4 134.2 136.3 136.0 138.3 137.4 137.3 135.8 134.1 129.6 127.5 Nondurable consumer goods 20.67 129.0 131.5 130.2 129.5 129.1 128.7 127.6 128.5 129.0 129.4 129.1 129.6 129.3 129.0 Clothing 4.32 116.0 117.3 170.3 116.3 114.5 112.0 106.2 107.0 108.9 108.6 106.4 106.4 Consumer staples 16.34 132.4 135.2 132.8 133.0 133.0 133.1 133.2 134.2 134.3 134.9 135.1 135.7 135.9 136.1 Consumer foods and tobacco.... 8.37 122.2 126.5 125.0 126.9 125.9 125.7 123.9 124.7 124.7 125.5 124.4 126.3 125.3 125.4 Nonfood staples 7.98 143.1 144.3 141.1 139.4 140.4 140.8 143.1 144.3 144.4 144.7 146.5 145.6 146.9 147.3 Consumer chemical products.. 2.64 153.3 154.9 156.7 157.8 159.0 160.3 159.7 157.5 156.8 154.6 159.0 157.7 161.6 Consumer paper products 1.91 121.3 123.6 120.5 119.4 119.9 119.1 119.4 124.7 123.9 124.4 129.5 130.5 129.3 Consumer fuel and lighting... 3.43 147.5 147.8 140.7 136.7 137.4 138.2 143.7 145.1 146.0 148.4 146.2 144.6 145.3 Residential utilities 22..2255 115566..88 115588..00 114499..88 114455..66 114488..66 114499..00 115511..66 115533..22 115555..33 115577..88 115555..44 115566..11 Equipment Business equipment 12.74 122.6 127.8 126.9 126.8 127.3 127.6 127.9 130.2 130.2 131.3 128.8 132.3 132.4 131.0 Industrial equipment 6.77 120.1 125.6 124.9 125.3 126.6 126.8 127.6 129.6 129.0 130.3 129.6 132.1 131.2 129.2 Building and mining equip 1.45 120.4 126.0 126.0 128.5 130.3 131.3 133.5 135.0 137.4 136.2 136.5 139.8 140.7 137.5 Manufacturing equipment 3.85 113.0 118.2 118.5 119.3 120.6 121.1 122.1 124.1 121.9 124.9 123.1 124.7 123.0 120.6 Power equipment 1.47 138.5 144.6 140.3 138.0 138.7 137.3 136.6 138.4 139.0 138.4 139.6 143.9 143.4 143.4 Commercial, transit, farm eq 5.97 125.5 130.3 129.2 128.5 128.2 128.7 128.2 130.9 131.5 132.5 127.6 132.7 133.9 133.0 Commercial equipment 3.30 135.0 141.3 139.3 139.8 139.8 140.8 140.4 141.5 142.7 143.5 134.0 143.1 145.5 144.5 Transit equipment 2.00 109.8 111.4 111.1 109.5 109.3 109.4 106.7 110.2 110.4 111.4 109.3 111.8 111.6 109.3 Farm equipment .67 125.1 132.4 133.4 129.2 126.0 126.1 131.2 140.2 140.6 141.4 150.5 144.3 143.4 Defense and space equipment 7.68 80.2 80.9 81.9 81.4 80.9 81.0 80.6 82.2 81.7 82.6 82.7 83.1 84.1 83.3 Military products 5.15 80.3 80.0 81.3 80.6 80.2 80.5 79.9 81.2 79.7 81.4 81.5 82.4 82.5 82.0 Intermediate products Construction products 5.93 134.2 133.7 131.1 133.0 131.3 129.6 130.8 130.8 129.6 128.2 128.0 127.5 123.7 120.2 Misc. intermediate products 77..3344 112288..66 112299..00 112277..44 112266..33 112277..44 112277..55 112288..22 112277..99 112288..44 127.5 112299..22 112266..55 112244..99 Materials 20.91 130.1 133.0 132.7 129.8 127.3 127.2 127.3 128.3 127.5 125.8 128.1 128.9 128.9 123.2 Consumer durable parts 4.75 127.8 128.4 121.0 113.0 109.3 110.6 112.5 114.7 114.1 117.2 117.5 117.2 115.4 104.5 Equipment parts 5.41 119.3 125.8 125.3 123.9 122.6 121.6 120.1 122.5 122.1 120.6 125.8 125.0 124.0 122.2 Durable materials nec 10.75 136.5 138.7 141.6 140.0 137.6 137.5 137.5 137.2 136.2 132.3 133.9 136.1 137.4 132.0 Nondurable goods materials 13.99 129.1 130.7 129.2 131.1 131.1 131.9 131.9 130.9 131.3 131.1 130.4 129.1 126.8 124.2 Textile, paper, and chem. mat 8.58 139.8 142.4 140.1 143.4 141.7 143.1 143.9 143.3 143.6 143.6 143.2 141.9 139.1 135.8 Nondurable materials n.e.c 5.41 112.2 112.1 111.9 111.7 114.3 114.7 112.7 111.4 111.9 ill.3 110.0 108.9 107.4 105.8 Fuel and power, industrial 2.89 123.9 124.9 123.1 121.5 122.5 122.6 123.2 124.7 126.3 128.0 123.5 127.4 127.1 114.3 Supplementary groups 9.34 129.0 130.2 132.4 128.8 126.9 127.0 124.6 126.0 127.1 126.4 125.0 123.5 119.8 116.2 Containers 11..8822 113399..99 114422..33 114411..00 114488..44 114444..33 115511..44 114477..00 114411..55 114411..66 114422..11 114400--44 113366..66 113311..55 Gross value of products in market structure (In billions of 1963 dollars) Products, total 286.3 449.8 456.9 449.1 445.4 442.5 443.9 445.4 449.5 449.7 448.1 446.9 447.6 445.1 438.8 Final products 221.4 346.1 353.3 346.9 342.5 339.9 342.3 342.9 347.2 347.7 346.6 345.0 346.8 346.8 341.6 Consumer goods 156.3 239.7 243.6 237.8 233.6 230.6 232.7 233.8 235.9 236.6 235.0 235.1 234.1 234.0 229.6 Equipment 65.3 106.4 109.5 109.0 108.9 109.1 109.4 109.0 111.2 111.2 111.6 109.9 112.7 113.0 111.9 Intermediate products 64.9 103.7 103.6 102.5 103.1 102.6 101.9 102.5 102.2 102.0 101.2 102.1 100.7 98.6 97.1 For NOTE see p. A-51. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • INDUSTRIAL PRODUCTION: S.A. A 51 INDUSTRY GROUPINGS (1967 = 100) p 1 p 9 o r 6 o r 7 - - a 1 v 9 e 7 r 3 - 1973 1974 Grouping tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.? Nov. Manufacturing 88.55 125.2 127.4 126.4 125.3 124.5 124.6 124. 125.7 125.6 125.2 125.2 125.4 124.6 121.7 Durable 52.33 122. 124.3 123.1 121.1 119.4 120.4 120.7 122. 122.1 121.6 121.6 122. 121.6 117.7 Nondurable 36.22 129.6 131.3 131.2 131.4 131.5 130.9 130.4 130.9 130.8 130.8 130.4 130.2 128.9 127.5 Mining and utilities 11.45 128.9 130.6 126.9 125.4 126.9 127.3 127.8 128.0 128.1 128.9 127.4 128.4 128 124.3 Mining 6.37 110.2 111.3 110.4 109.9 111.7 112.2 11 111.0 110.2 110.2 107 109.3 109.6 103.9 Utilities 5.08 152.3 154.6 147.6 144.9 146.1 146.5 148.7 149.2 150.6 152.4 152.6 152.2 151.8 150.3 Durable manufactures Primary and fabricated metals 12.55 128.8 131.0 130.5 130.4 127.6 128.2 127.5 128.1 .128.4 126.9 126.5 126.9 126.0 121.6 Primary metals 6.61 127.1 128.9 130.7 129.5 125.0 125.3 124.0 124.6 124.7 123.2 121.9 122.2 123.3 118.5 Iron and steel, subtotal 4.23 121.6 124.2 127.7 125.5 119.4 119.6 116.4 118.0 118.5 119.9 120.7 119.1 121.0 116.0 Fabricated metal products 5.94 130.7 133.1 130.0 131.4 130.6 131.6 131.3 131.9 132.5 131.1 131.5 132.0 128.8 125.0 Machinery and allied goods 32.44 117.3 119.9 118.6 115.2 113.8 114. 115.5 117.5 117.7 117.3 117.8 119.1 118.9 115.2 Machinery 17.39 125.9 130.4 130.9 128.6 127.2 128.4 128.2 129.7 130.4 129.9 130.5 132.5 131.4 129.0 Nonelectrical machinery 9.17 125. 130.3 130.2 129.4 128 129.8 130.7 131.9 131.7 131.1 136.4 137.9 137.7 135.0 Electrical machinery 8.22 126.8 130.5 131.6 127.7 126.2 126.8 125.3 127.4 129.0 128.4 123.7 126.4 124.3 122.3 Transportation equipment 9.29 109.2 109.8 103.0 95.7 93.9 95.0 97.8 100.6 99.4 98.7 99.9 100.4 102.9 94.3 Motor vehicles and parts 4.56 138.1 137.8 124.6 112.7 109.2 110.2 116.4 119.6 116.9 117.3 117.8 118.6 122.9 106.8 Aerospace and misc. trans, eq... 4.73 81.4 82.9 82.2 79.3 79.3 80.3 80.0 82.4 82.6 80.9 82.6 82.8 83.6 82.4 Instruments 2.07 138.4 142.6 142.7 143.0 142.8 142.8 143.8 146.1 147.5 146.7 146.7 144.8 142.5 141.9 Ordnance, private and Govt 3.69 85.4 84.3 86.1 85.2 84.2 84.9 . 84.3 86.1 86.4 87.2 87.1 87.7 87.3 87.0 Lumber, clay, and glass 4.44 129.5 129.3 127.8 129.7 127.4 128.1 128.9 128.0 126.4 125.5 123.4 120. 7 118.6 115.3 Lumber and products 1.65 128.9 127.3 126.3 126.1 127.1 126. 126.8 126.8 125.6 121.6 121.5 116.6 112.8 Clay, glass, and stone products.... 2.79 129.9 130.4 128.7 131.8 127.6 129.3 130.3 128.7 126.9 127.7 124.6 123.2 122.0 Furniture and miscellaneous 2.90 135.2 136.4 135.3 133.4 135.2 136.8 136 138.9 138.5 139.7 140.1 137.7 135.4 132.1 Furniture and fixtures 1.38 126.3 127.9 124.9 124.2 125.4 126.8 128.8 129.7 131.1 131.6 130.5 129.0 127.0 Miscellaneous manufactures 1.52 143.3 144.3 144.5 141.8 144.2 145.8 144.1 147.3 145.3 147. 148.8 145.6 143.1 Nondurable manufactures Textiles, apparel, and leather 6.90 114.7 116.7 118.8 116.2 115.3 112.4 109.3 109.8 108.5 108.1 107.4 106.1 105.2 102.6 Textile mill products 2.69 127.1 129.4 130.9 128.4 127.6 125.0 123.4 124.0 125.1 125.3 124.3 121.1 118.8 Apparel products 3.33 112.9 115.3 118.5 116.4 113.6 110.0 105.8 105.0 102.1 102.7 102.5 102.1 Leather and products 83.6 82.9 82.9 77.6 83.7 83.0 79.5 83.9 81.6 75.7 73.4 74.2 70.5 68.6 Paper and printing 7.92 122.1 121.9 121.2 121.7 122.2 122.5 121.2 121.3 122.3 122.4 121.0 122.5 119.2 116.5 Paper and products 3.18 135.4 136.2 136.7 138.7 137.6 140.2 135.4 135. 136.7 136.1 132.2 135.3 129.4 Printing and publishing 4.74 113.2 112.3 110.8 110.4 111.9 110.7 111.7 111.9 112.7 113.4 113.4 113.9 112.3 109.8 Chemicals, petroleum, and rubber.... 11.92 149.3 151.6 151.6 151.5 151.2 151.3 153.5 153.0 153.7 153.9 154.4 153. 153.3 152.0 Chemicals and products 7.86 150.1 153.0 154.5 154.9 155.3 155.5 156.2 156.2 156.9 155.8 156.7 157.0 157.3 156.5 Petroleum products 1.80 127.4 129.5 125.5 120.5 116.9 117.3 126.9 126. 126.2 127.9 125.8 121.7 123.9 124.3 Rubber and plastics products 2.26 164.0 164.5 162.3 164.3 163.5 164.2 165.5 163.7 164.5 167.2 169.0 168.6 162.7 Foods and tobacco 9.48 121.9 124.7 123.0 125.4 126.2 125.3 124.3 126.5 125.3 124. 124. 124.5 123.7 123.8 Foods 8.81 122.7 125.4 124.5 126.3 127.2 126.5 125.9 127.8 127.1 126.6 126.3 125.9 125.0 125.2 Tobacco products .67 111.6 115.8 104.2 113.3 112.1 110.4 104.6 109.4 102.9 101.5 104.2 106.2 Mining Metal, stone, and earth minerals 1.26 118.1 121.3 122.0 121.4 119.9 119.7 117.5 117.9 112.4 113.5 109.9 115.4 119.1 117.2 Metal mining .51 130.8 135.2 135.2 135.2 132.2 132.9 127.4 128.1 121.1 120.3 110.0 130.5 140.7 Stone and earth minerals .75 109.5 111.7 113.1 111.9 111.6 110.7 110.7 111.0 106.4 108.8 109.9 105.0 104.2 Coal, oil, and gas 5.11 108.3 108.8 107.5 107.0 109.6 110.2 109.8 109.2 109.7 109.4 106.7 107.8 107.3 100.6 Coal .69 103.6 104.1 110.4 108.7 112.7 114.7 110.3 112.4 118.3 115.6 99.4 112.1 113.9 75.0 Oil and gas extraction 4.42 109.0 109.6 107.0 106.8 109.1 109.5 109.7 108.8 108.4 108.4 107.9 107.2 106.3 104.6 Utilities Electric 3.91 160.7 163.4 155.6 153.0 154.6 155.1 158.3 159.0 160.3 162.7 162.8 162.4 Gas 1.17 124.2 NOTE.—Data for the complete year of 1972 are available in a pamphlet Published groupings include series and subtotals not shown sepa- Industrial Production Indexes 1972 from Publications Services, Division rately. Figures for individual series and subtotals are published in the of Administrative Services, Board of Governors of the Federal Reserve monthly Business Indexes release. System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 BUSINESS ACTIVITY; CONSTRUCTION • DECEMBER 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices 4 facturing 2 In- Ca- Market dustry pacity Nonagutiliza- Con- ricul- Products tion struc- tural TToottaall PPPPeeeerrrriiiioooodddd TTToootttaaalll TToottaall C Fi o n n a - l m I e n d te ia r- te MM rrii aa aa tt ll ee ss -- ff MM aa ii cc aa nn tt nn uu gg uu rr -- -- i o = n ( u 1 t m 1 9 p 0 6 f u 0 g 7 t ) . tr c t a i o o c n n t - s T m p e o e l m t o n a y - t l — - 1 p m E l e m o n y - t - r P o a l y ls - ss rr aa ee ll tt ee aa ss iill 33 s C um on e - r m W c s o o h a m d l o e i l - t e y - Total sumer Equipgoods ment 1955. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960. 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80. 82.4 88.0 68.8 70 88.7 94.9 1961. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963. 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968. 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969. 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970. 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 1971, 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 1972 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973. 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 1973--Oct 127.0 124.3 122.7 132.6 108.9 130.6 131.1 126.4 191.0 117.9 104.1 153.9 164 136.6 138.7 Nov 127.5 125.3 123.7 133.5 110.1 131.1 131.5 127.4 82.6 194.0 118.3 104.4 157.9 164 137.6 139.2 Dec 126,5 124.0 122.6 131.3 110.1 129.1 130.7 126.4 161.0 118.3 104.4 155.8 161 138.5 141.8 1974—Jan 125,4 122.9 121.2 129.2 109.8 129.2 129.7 125.3 155.0 118.3 104.0 151.4 164 139.7 146.6 Feb 124.6 122.4 120.6 128.3 109.9 129.1 128.3 124.5 80.5 187.0 118.5 103.2 153.1 165 141.5 149.5 Mar 124.7 122.6 121.0 128.5 110.1 128.2 128.8 124.6 181.0 118.6 102.9 152.5 168 143.1 151.4 Apr 124.9 122.7 120.8 128.5 110.1 129.4 128.7 124.8 167.0 118.8 103.0 149.8 169 144.0 152.7 May 125.7 123.8 122.4 129.7 112.2 129.2 129. 1 125.7 80.1 188.0 119.0 103.0 156.5 172 145.6 155.0 June 125.8 124.0 122.6 130.2 112.0 128.9 128.8 125.6 166.0 119.1 103.2 157.5 170 147.1 155.7 July 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 119.2 103.0 158.4 177 148.3 161.7 Aug 125.2 123.5 122.1 129.8 111.4 128.6 128.5 125.2 '79.4 170.0 119.4 102.6 160.3 180 150.2 167.4 Sept 125.6 123.7 122.8 129.4 113.8 126.9 128.8 125.4 187.0 119.7 102.5 162.3 176 151.9 167.2 Oct 124.9 123.0 122.6 128.6 114.2 124.4 128.0 124.6 148.0 119.7 101.7 163.0 175 153.2 r170.2 Nov.f.... 122.0 121.4 120.9 126.6 113.1 122.7 122.9 121.7 119.0 99.4 160.3 173 171.9 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Company 2 Production workers only. Revised back to 1968. F.W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering; 4 Prices are not seasonally adjusted. Latest figure is final. does not include data for Alaska and Hawaii. NOTE.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; Capacity utilization: Based on data from Federal Reserve, McGraw- includes data for Alaska and Hawaii beginning with 1959. Hill Economics Department, and Dept. of Commerce. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1973 1974 Type of ownership and 1972 1973 type of construction Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 7 otal construction * 90,979 100,071 8,983 7,905 6,133 5,954 6,610 7,911 8,929 10,158 8,480 9,295 8,416 8,359 7,227 By type of ownership: Public 24,043 26,686 2,055 2,140 1,855 2,135 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 Private i 66,936 73,385 6,928 5,765 4,277 3,819 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 By type of construction: Residential building 1 44,975 46,246 3,673 3,299 2,341 2,231 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 Nonresidential building 27,021 31,761 2,758 2,655 2,210 2,307 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 Nonbuilding 18,983 22,064 2,552 1,951 1,581 1,415 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 Private housing units authorized... 2,219 1,820 1,379 1,361 1,285 1,282 1,325 1,410 1,296 1,120 1,106 1,017 900 r823 802 (In thousands, S.A., A.R.) t 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

DECEMBER 1974 • CONSTRUCTION A 53 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser- Total Total d R en e t s i i a - l Total 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 r 1 - Other Total M ta i r l y i- H w ig ay h - d v e m a v a t n e e i l n d o o t n p - 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 93,728 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 124,077 93,893 54,288 39,605 4.676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2.313 136,446 103,280 56,316 46,964 6,748 15,762 5,860 18,594 33,166 1,079 10,566 2,300 135,692 102,270 54,548 47,722 7,080 16,054 5,727 18,861 33,422 1,060 10,952 2,362 133,222 100,110 52,357 47,753 7,343 15,890 5,913 18,607 33,112 1,082 11,168 2.314 132,863 98,023 49,720 48,303 6,831 15,762 6,058 19,652 34,840 1,305 12,043 2,044 136,604 99,092 48,963 50,129 7,869 16,650 6,143 19,467 37,512 1,361 12,465 2,510 135,880 99,442 49,090 50,352 7,500 16,652 6,336 19,864 36,438 1,401 10,985 2,463 138,277 99,323 49,438 49,885 6,920 16,296 6,264 20,405 38.954 1,505 12,209 2,665 140,508 100,234 49,604 50,630 7,606 16,408 5,890 20,726 40,274 1,181 12,322 2,692 138,613 100,128 49,244 50,884 8,027 16,425 6,034 20,398 38,485 1 ,169 11,632 3,306 138,024 98,069 48,527 49,542 7,158 15,953 5,915 20,516 39.955 1,131 134,003 95,803 47,156 48,647 7,616 15,053 5,691 20,287 36,974 978 133,167 94,506 45,010 49,496 7.677 15,668 5,776 20,375 38,661 1,167 132,658 94,577 43,258 51,319 8,645 16,213 5,704 20,757 38,081 1,065 1 Includes religious, educational, hospital, institutional, and other build- NOTE.—Census Bureau data; monthly series at seasonally adjusted igs. 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 1 Units Median prices (in thousands MMoobbiillee of dollars) of PPPeeerrriiioooddd hhoommee units 22--oorr-- 22--oorr-- 11-- 22--oorr-- sshhiipp-- TToottaall ffaammiillyy mmoorree TToottaall ffaammiillyy mmoorree TToottaall ffaammiillyy mmoorree mmeennttss ffaammiillyy ffaammiillyy ffaammiillyy For sale For Sold (end of Sold sale period) 1965 111111,,,,,,444444777777333333 999999666666444444 555555000000999999 222221111177777 555557777755555 222222222288888 2222200000.....00000 2222211111.....33333 1966 111111,,,,,,111111666666555555 777777777777999999 333333888888666666 222221111177777 444446666611111 111119999966666 2222211111.....44444 2222222222.....88888 1967 111111,,,,,,222222999999222222 888888444444444444 444444444444888888 222224444400000 444448888877777 111119999900000 2222222222.....77777 2222233333.....66666 1968 111111,,,,,,555555000000888888 888888999999999999 666666000000888888 11,,332200 885599 4466 ii 333331111188888 444449999900000 222221111188888 2222244444.....77777 2222244444.....66666 196 9 111111,,,,,,444444666666777777 888888111111111111 666666555555666666 11,,339999 880088 559922 885 350 535 444441111133333 444444444488888 222222222288888 2222255555.....66666 2222277777.....00000 197 0 111111,,,,,,444444333333444444 888888111111333333 666666222222111111 11,,441188 880022 661177 922 381 541 444440000011111 444448888855555 222222222277777 2222233333.....44444 2222266666.....22222 197 1 222222,,,,,,000000555555222222 111111,,,,,,111111555555111111 ^^^^^^>>>>>>000000111111 11,,770066 11,,001144 669922 1,254 505 749 444449999977777 666665555566666 222229999944444 2222255555.....22222 2222255555.....99999 197 2 222222,,,,,,333333555555777777 111111,,,,,,333333000000999999 111111,,,,,,000000444444888888 11..997722 11,,114433 882288 1,586 640 947 555557777766666 777771111188888 444441111166666 2222277777.....66666 2222288888.....33333 197 3 222222,,,,,,000000444444555555 111111,,,,,,111111333333222222 999999111111333333 22,,001144 11,,117744 884400 1,599 583 1,016 555556666677777 666662222200000 444445555566666 3333322222.....55555 3333322222.....99999 1973—Oct. r 111111 ,,,,,,666666777777444444 999999555555777777 777777111111888888 11..997733 11,,112211 885511 1,680 635 1,045 444445555588888 555550000055555 444445555511111 3333333333.....33333 3333322222.....33333 Nov.r 111111,,,,,,666666777777555555 999999333333888888 777777333333777777 11,,994499 11,,112288 882211 1,662 624 1,038 444449999900000 555551111111111 444444444477777 3333344444.....00000 3333322222.....66666 Dec.r 111111,,,,,,444444000000333333 777777666666777777 666666333333666666 11,,887733 11,,005500 882233 1,638 613 1,025 444445555566666 444443333333333 444444444466666 3333355555.....77777 3333322222.....99999 1974—Jan. r 111111,,,,,,444444666666444444 777777999999333333 666666777777111111 11,,991166 11,,002266 889900 1,608 599 1.009 444446666699999 444447777744444 444445555500000 3333344444.....22222 3333333333.....44444 Feb.r 111111,,,,,,999999222222222222 111111,,,,,,000000555555666666 888888666666666666 11,,889911 11,,001188 887733 1,611 601 1.010 444444444499999 555551111166666 444445555599999 3333344444.....99999 3333333333.....55555 Mar.r 111111,,,,,,444444999999999999 999999666666222222 555555333333777777 11,,888855 997733 991122 1,567 597 970 444447777755555 555558888855555 444445555533333 3333366666.....00000 3333344444.....00000 Apr.r 111111,,,,,,666666333333000000 999999999999666666 666666333333444444 11,,669955 888833 881122 1,545 600 945 444443333355555 555557777700000 444444444499999 3333355555.....77777 3333344444.....33333 Mayr 111111,,,,,,444444777777111111 999999333333111111 555555444444000000 11,,667777 888822 779955 1,512 594 918 444445555511111 555559999999999 444444444411111 3333355555.....77777 3333344444.....77777 Juner 111111,,,,,,555555999999666666 111111,,,,,,000000111111444444 555555888888222222 11,,885511 11,,009922 775599 1,480 581 899 444444444411111 555553333322222 444443333355555 3333355555.....11111 3333355555.....00000 July 111111,,,,,,333333333333888888 999999555555888888 333333888888000000 11,,667744 993355 773399 1,443 578 865 333338888800000 555551111111111 444443333311111 3333366666.....88888 3333355555.....33333 Aug.r 111111,,,,,,111111333333444444 888888111111222222 333333222222222222 11,,449900 888844 660077 1,405 571 834 333337777700000 444445555566666 444443333333333 3333355555.....66666 3333355555.....55555 Sept 111111,,,,,,111111333333222222 888888333333777777 222222999999555555 11,,446622 883344 662288 1,368 565 803 333331111166666 444447777788888 444441111155555 3333366666.....99999 3333355555.....77777 Oct p 111111,,,,,,111111222222444444 777777888888777777 333333333333777777 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 • DECEMBER 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- agric I u n l ture U pl n o e y m ed - (pe S r . A ce .) n t; industries 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—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 3,699 633 5.1 Apr. 150,283 58,547 92,556 90,313 85,775 82,264 3,511 538 5.0 May, 150,507 58,349 92.909 90,679 85,971 82,514 3,457 708 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 Nov. 151,812 57,991 93,913 91,701 85,726 82,356 3,370 5,975 6.5 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 u i t e b a s - - Trade Finance Service G m ov e e n r t n - 67,951 19,781 606 3,306 4,311 14,099 3,381 10,622 11,845 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 11,202 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 1972 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973 76,833 20,054 638 4,028 4,646 16,665 4,075 12,986 13,742 SEASONALLY ADJUSTED 1973—Oct 77,649 20,252 644 4,083 4,696 16,847 4,110 13,160 13,857 Nov 77,915 20,314 648 4,099 4,692 16,904 4,116 13,221 13,921 Dec 77,924 20,323 652 4,115 4,688 16,826 4,121 13,236 13,963 1974—Jan 77,925 20,253 658 4,098 4,710 16,851 4,132 13,236 13,987 Feb 78,053 20,155 661 4,127 4,717 16,871 4,142 13,313 14,067 Mar 78,089 20,116 662 4,102 4,708 16,914 4,145 13,339 14,103 Apr 78,226 20,147 665 4,087 4,704 16,945 4,154 13,367 14,157 Mav 78,357 20,151 668 4,066 4,701 16,994 4,161 13,429 14,187 June 78,421 20,184 669 3,994 4,698 17,031 4.156 13,488 14,201 July 78,479 20,169 675 3,920 4,693 17,107 4.157 13,516 14,242 Aug 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 Sept 78,844 20,112 682 3,939 4,679 17,166 4,176 13,647 14,443 Oct 78,811 19,976 690 3,904 4,704 17,160 4.184 13,711 14,482 NOV.p 78,368 19,628 679 3,855 4,703 17,041 4.185 13,748 14,529 NOT SEASONALLY ADJUSTED 1973—Oct 78,221 20,417 645 4,332 4,715 16,910 4,098 13,173 13,931 Nov 78,627 20,451 648 4,226 4,697 17,183 4,100 13,208 14,114 Dec 78,680 20,355 647 4,033 4,683 17,516 4,100 13,170 14,176 1974—Jan 76,837 20,057 647 3,647 4,653 16,675 4,091 13,011 14,056 Feb 77,011 19,971 646 3,702 4,651 16,513 4,105 13,153 14,270 Mar 77,362 19,962 648 3,786 4,670 16,584 4,120 13,246 14,346 Apr 77,994 20,011 659 3,919 4,671 16,851 4,137 13,380 14,366 May 78,545 20,063 669 4,058 4,701 16,964 4,161 13,536 14,393 June 79,287 20,345 684 4,190 4,759 17,108 4,202 13,677 14,322 July 78,322 20,066 688 4,187 4,740 17,064 4,219 13,665 13,693 Aug 78,561 20,288 690 4,286 4,734 17,058 4,222 13,668 13,615 Sept 79,097 20,350 688 4,191 4,721 17,153 4,180 13,647 14,167 Oct 79,378 20,140 691 4,142 4,723 17,225 4,171 13,725 14,561 NOV.P 79,087 19,758 679 3,974 4,708 17,335 4,168 13,734 14,731 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 1968, series has been adjusted to Mar. 1973 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • PRICES A 55 CONSUMER PRICES (1967 = 100) Housing Health and recreation 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 l d e l l t e r G a l i n e c a i d c s t - y o n F p i a n i u e n s g r h d r s a - - - AA uu pp pp aa pp kk nn aa ee dd rr ee pp eell TT pp tt oo rr ii aa rr oo nn tt nn aa ss -- -- Total M c ic a e a r d l e - s c P o a e n r r a e - l r R e a i e c n n r a g d e d a - - g O s a o e t n o r h d v d e - r s tion tion ices 1929 55551111....3333 44448888....3333 77776666....0000 44448888....5555 1933 33338888....8888 33330000....6666 55554444....1111 33336666....9999 1941 44444444....1111 33338888....4444 5533..77 55557777....2222 4400..55 8811..44 44444444....8888 4444..22 3377..00 4411..22 4477..77 4499..22 1Q45 55553333....9999 55550000....7777 5599..11 55558888....8888 4488..00 7799..66 66661111....5555 4477..88 4422..11 5555..11 6622..44 5566..99 1960. 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965. 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966. 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968. 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969. 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970. 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971, 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972. 125.3 123^5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973. 133.1 141.4 135.0 124.2 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1973--Oct 136.6 148.4 138.1 125.9 151.5 141.1 127.4 126.7 129.6 125.0 132.1 140.6 127.3 127.2 130.3 Nov 137.6 150.0 139.4 126.3 152.6 155.6 129.8 127.5 130.5 125.8 132.6 140.9 128.1 127.5 130.8 Dec 138.5 151.3 140.6 126.9 153.6 172.8 131.0 128.0 130.5 126.7 133.0 141.4 129.2 127.6 131.3 1974—Jan 139.7 153.7 142.2 127.3 154.8 194.6 134.3 129.0 128.8 128.1 133.7 142.2 129.8 128.3 131.8 Feb 141.5 157.6 143.4 128.0 155.8 202.0 137.3 130.1 130.4 129.3 134.5 143.4 130.8 128.9 132.3 Mar 143.1 159.1 144.9 128.4 157.2 201.5 140.0 132.6 132.2 132.0 135.4 144.8 131.8 129.5 132.8 Apr 144.0 158.6 146.0 128.8 158.2 206.5 141.9 134.0 133.6 134.4 136.3 145.6 133.1 130.4 133.6 May 145.6 159.7 147.6 129.3 159.4 211.0 143.9 137.0 135.0 137.6 137.7 147.2 134.9 132.0 134.4 June 147.1 160.3 149.2 129.8 161.2 214.2 144.5 139.2 135.7 140.7 139.4 149.4 136.5 133.5 135.8 July 148.3 160.5 150.9 130.3 163.2 218.5 146.2 141.4 135.3 142.6 141.0 151.4 137.8 134.6 137.7 Aug 150.2 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 143.4 142.6 153.7 139.3 135.2 139.4 Sept 151.9 165.0 154.9 131.4 167.9 222.7 150.2 146.6 139.9 144.3 144.0 155.2 141.2 137.0 140.4 Oct 153.2 166.1 156.7 132.2 170.1 225.5 151.5 149.0 141.1 145.1 145.2 156.3 143.0 137.8 141.4 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Prom c t A o o ie m l d s l i - - p F u r a c o r t d m s - c f f e o a e s n o e s d d d ed s s 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 m c M q a e h n e r u i a y n d n i - p t - - F t u e 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 m p t q r o i e a u o r n n n i t p a t s 1 - - - n c M e e l o i l s u a - s - 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 110.4 11.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 113.9 112.9 14.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 139.2 184.0 151.9 130.1 130.0 143.0 144.1 113.5 114.8 184.7 127.6 138.5 123.8 117.2 131.5 116.1 121.3 141.8 187.2 155.7 132.2 131.4 141.9 151.5 115.6 116.5 186.1 128.7 141.8 124.6 117.5 132.6 117.3 121.6 146.6 202.6 162.1 135.3 133.8 142.6 162.5 118.2 117.7 183.7 131.8 145.0 126.0 119.0 138.7 118.6 123.5 149.5 205.6 164.7 138.2 135.2 143.4 177.4 120.2 119.8 184.1 132.9 148.0 127.0 120.2 142.1 118.9 124.6 151.4 197.0 163.0 142.4 136.1 143.4 189.0 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 152.7 186.2 159.1 146.6 137.5 145.4 197.9 132.3 129.4 200.2 114.4 161.2 130.8 122.9 146.7 119.4 128.2 155.0 180.8 158.9 150.5 139.1 146.3 204.3 137.0 133.7 198.0 146.6 168.7 134.1 124.5 150.7 121.4 133.2 155.7 168.6 157.4 153.6 141.7 146.0 210.5 142.8 135.6 192.2 147.5 174.0 137.2 126.1 152.3 122.8 134.3 161.7 180.8 167.6 157.8 142.1 146.6 221.7 148.4 139.5 188.6 153.3 180.3 140.3 128.2 156.4 125.1 135.2 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.8 157.6 126.7 135.4 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 170.2; 187.5 183.5' 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 i Dec. 1968—100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 NATIONAL PRODUCT AND INCOME • DECEMBER 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 1,415.4 Final purchases 101.4 57.2 120.1 278.0 922.5 972.6 1,048.6 1,149.5 1,279.6 1,297.0 1.315.1 1.841-9 1,870.3 1406.7 Personal consumption expenditures. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 816.3 823.9 840.6 869.1 901.3 Durable goods 9.2 3.5 9.6 30.5 90.8 91.3 103.9 118.4 130.3 132.4 124.3 123.9 129.5 136.1 Nondurable goods 37.7 22.3 42.9 98.1 245.9 263.8 278.4 299.7 338.0 343.8 352. 364.4 375. 389.0 Services 30.3 20.1 28.1 62.4 242.7 262.6 284. 310.9 336.9 340.1 347.4 352.4 363. 376.2 Gross private domestic investment 16.2 1.4 17.9 54.1 139.0 136.3 153.7 179.3 209.4 209.0 224.5 210.5 211.8 205.8 Fixed investment 14.5 3.0 13.4 47.3 131.1 131.7 147.4 170.8 194.0 197.1 195.5 193.6 198.3 197.1 Nonresidential 10.6 2.4 9.5 27.9 98.5 100.6 104.6 116.8 136. 139.0 141.9 145.2 149.4 150.9 Structures 5.0 .9 2.9 9.2 34.2 36. 37.9 41. 47.0 47.9 49.3 51.3 52.2 51.0 Producers' durable equipment. 5.6 1.5 6.6 18.7 64.3 64.4 66.6 75.7 89. 91. 92.6 93.9 97.2 99.9 Residential structures 4.0 .6 3.9 19.4 32.6 31.2 42. 54.0 57.2 58. 53.6 48.4 48. 46.2 Nonfarm 3 .5 3.7 18.6 32.0 30.7 42.3 53.4 56.7 57.6 53.0 47. 48.0 45.4 Change in business inventories 1.7 -1.6 4.5 6. 7. 4.5 6.3 8.5 15.4 1 28.9 16.9 13.5 8.7 Ncnfarm -1.4 4.0 6.0 7.7 4.3 4.9 7 11.4 7.4 24.0 13. 10.4 6.6 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 -4.0 Exports 7.0 2.4 5.9 13. 55.5 62.9 65.4 72.4 100.4 103.7 113.6 131.2 138.5 142.6 Imports 5.9 2.0 4.6 12.0 53.6 59.3 65.6 78.4 96.4 96.9 104.3 119.9 140.0 146.6 Government purchases of goods and services. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 276.9 286.4 296.3 304.4 312.3 Federal 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 105.3 108.4 111.5 114.3 117.2 National defense 13. 14.1 78.4 74, 71 74. 74.4 73.3 75.3 75. 76 78.4 Other 3. 4.3 20.4 21, 26.5 30.1 32.2 32.0 33.1 35.7 37.7 38.8 State and local 7.2 6.0 7.9 19.5 111.2 123.3 136.6 150.8 169.8 171.6 177.9 184. 190.1 195.1 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 725.6 722.5 746.3 792.5 839.2 840.8 845.7 830.5 827.1 822.7 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 IItteemm 11992299 11993333 11994411 11995500 11996699 11997700 11997711 11997722 11997733 III IV I II IllP 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 1,156.4 Compensation of employees 51.1 29.5 64.8 154.6 566.0 603.9 643.1 707.1 786.0 793.3 814.8 828.8 848.3 868.2 Wages and salaries 50.4 29.0 62.1 146.8 509.7 542.0 573.6 626.8 691.6 698.2 717.0 727.6 744.6 761.5 Private 45.5 23.9 51.9 124.4 405.6 426.9 449.5 491.4 545.1 550.8 565.8 573.8 588.3 602.5 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 95.5 104.7 114.8 126.0 127.2 130.2 132.8 135.4 138.2 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 54.5 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 92.1 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 62.3 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 29.8 Rental income of persons 5.4 22..00 33..55 99..44 2222..66 2233..99 2255..22 2255..99 2266..11 2266..22 2266..44 2266..44 2266..33 2266..66 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 105.2 106.4 107.7 105.6 106.7 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 r135.4 r139.0 158.4 Profits tax liability 1.4 .5 7.6 17.8 40.1 34.8 37.5 41.5 49.8 49.9 49.5 r52.2 r55.9 63.5 Profits after tax 8.6 .4 10.1 24.9 44.8 39.3 46.1 57.7 72.9 72.9 73.2 r83.2 '83.1 94.9 Dividends 5.8 2.0 4.4 8.8 24.3 24.7 25.0 27.3 29.6 29.8 30.7 r31.6 r32.5 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 '51.6 r50. 5 61.7 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 -5.1 -4.8 -4.9 -7.0 -17.6 -17.5 -16.3 r—27.7 r —33.4 -51.7 Net interest 4.7 4.1 3.2 2.0 30.5 36.5 41.6 45.6 52.3 53.2 55.5 r57.5 '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

DECEMBER 1974 • NATIONAL PRODUCT AND INCOME A 57 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 III IV I II 111* 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 1,415.4 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 93.5 102.7 110.0 119.2 120.4 121.3 122.6 125.9 129.5 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 1.2 Plus: Subsidies less current surplus of gov- -. 1 . 1 .2 1.0 1.7 1.1 2.3 .6 .3 -. 1 -2.7 -3.7 -2.4 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 1,156.4 / ess: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 79.8 69.2 78.7 92.2 105.1 110055..22 106.4 107.7 105.6 106.7 Contributions for social insurance .2 .3 2.8 6.9 54.2 57.7 63.8 73.0 91.2 92.1 93.9 99.1 100.8 103.0 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 98.6 113.0 114.1 117.1 123.1 130.6 138.7 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 42.7 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 1,099.31,112.5 1,134.6 1,168.2 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 92.7 206.9 634.4 691.7 746.4 802.5 903.7 913.9 939.4 950.6 966.5 993.1 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! 866.2 894.9 927.6 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 579.5 617.6 667.1 729.0 805.2 816.3 823.9 840.6 869.1 901.3 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 foreigners .3 .2 .5 .9 1.0 1.1 1.1 1.3 .9 2.2 1.2 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 89.3 84.4 71.5 65.5 Disposable personal income in constant (1958) 1 dollars 150.6 112.2 190.3 249.6 513.6 534.8 555.4 580.5 619.6 621.8 622.9 610.3 603.5 602.9 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.2* Total personal income 944.9 1,055.0 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 1,159 5 1,167.2 1,178.0 1,186.4 Wage and salary disbursements. 626.8 691.7 711.0 717.9 722.2 722.5 728.3 732.1 737.1 745.3 753.2 759.7 761.6 767.7 773.4 Commodity-producing industries 225.4 251.9 260.0 263.1 264.5 262.1 264.6 265.3 267.4 270.0 272.6 273.3 276.5 278.3 279.9 Manufacturing only 175.8 196.6 202.9 205.2 205.8 204.1 204.9 205.5 207.8 210.1 212.5 214.0 215.5 21-7.8 219.5 Distributive industries. . .. 151.0 165.1 169.1 171.1 170.9 172.0 172.8 173.9 175.3 177.8 179.1 180.8 180.7 183.1 184.0 Service industries 115.3 128.2 131.5 132.3 134.7 135.3 137.0 138.2 139.1 141.1 142.6 143.5 144.9 146.4 146.8 Government 135.0 146.6 150.4 151.4 152.1 153.0 153.8 154.6 155.3 156.3 158;9 162. 1 159.5 159.9 162.8 Other labor income 41.7 46.0 47.1 47.6 48.0 48.5 48.9 49.4 49.9 50.5 51.1 51.7 52.3 52.9 53.5 Proprietors' income 75.9 96.1 103.2 103.4 103.3 100.8 98.5 96.0 92.8 89.9 86.9 r90.0 r93.1 93.2 92.7 Business and professional... 54.9 57.6 58.3 58.5 58.4 58.7 59.4 59.9 60.2 60.8 61.2 61.9 62.5 62.5 62.7 Farm 21.0 38.5 44.9 44.9 44.9 42.1 39.1 36.1 32.6 29.1 25.7 r28.1 r30.6 30.7 30.0 Rental income 25.9 26.1 26.4 26.4 26.4 26.4 26.4 26.4 25.5 - 26.7 26.7 26.6 26.6 26.6 26.7 Dividends 27.3 29.6 30.2 30.4 31.6 31.4 31.6 31.9 32.1 32.5 33.0 33.1 33.2 33.4 33.5 Personal interest income 78.6 90.6 94.8 96.0 97.0 97.5 98.3 99.0 100.4 102.0 103.5 104.4 105.3 106.9 107.9 Transfer payments 103.2 117.8 121.7 122.1 122.6 126.7 128.4 129.5 134.6 135.8 137.0 142.5 143.6 146.0 147.6 Less: Personal contributions for social insurance 34.5 42.8 43.7 43.8 43.8 46.7 46.8 47.0 47.2 47.6 47.9 48.5 48.4 48.6 48.9 Nonagricultural income 916.5 1,008.0 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 1,137.4 1,146.3 Agricultural income 28.4 47.1 53.8 53.9 54.2 51.5 48.5 45.5 42.1 38.6 36.8 '37.1 '40.4 40.6 40.1 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 FLOW OF FUNDS • DECEMBER 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1973 1974 Transaction category, or sector 1965 19 66 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 1 2 Excluding equities 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 192.5 167.8 182.3 2 3 U.S. Government 1.8 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 9.7 17.8 1.6 8.2 3 4 Public debt securities 1.3 2.3 8.9 10.3 -1.3 12.91 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 -.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 Other residential 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 9.7 7.1 8.3 14 15 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 v 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 Corporate 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 64.4 55.0 70.1 30 31 Corporate equities .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 7.4 7.0 6.4 31 32 Foreign .3 -.3 .1 .2 .5 . 1 * -.4 -.2 -.4 * .3 32 33 Corporate business * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 33 Totals including equities 34 Foreign 2.7 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 8.0 7.1 20.5 34 35 Nonfinancial business 29.4 33.8 38.1 39.9 49.4 48.0 59.6 70.5 85.1 91.0 79.1 92.3 35 36 Corporate 20.4 25.3 29.6 31.5 38.9 39.5 46.8 55.3 67.2 72.3 62.0 76.2 36 37 Memo: U.S. Govt, cash balance -1.0 -.4 1.2 -1.1 .4 2.8 3.2 -.3 -1.7 3.8 -7.1 -2.4 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised 70.9 68.3 81.3 97.1 91.4 95.5 144.2 169.7 189.0 196.2 181.9 191.0 38 39 By U.S. Government 2.8 4.0 11.8 14.5 -4.0 10.0 22.3 17.6 11.4 14.1 8.7 10.6 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlays i 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 11 Corporate business 12 Total capital outlays 62.3 76.5 71.4 75.0 83.7 84.0 87.2 102.5 121.5 115.2 127.8 132.2 12 13 Capital consumption 35.2 38.2 41.5 45.1 49.8 53.6 57.7 63.0 67.5 66.5 68.4 70.8 13 14 Net physical investment 27.1 38.3 29.9 29.9 33.9 30.4 29.5 39.4 54.0 48.7 59.4 61.5 14 15 Net debt funds raised 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 64.4 55.0 70.1 15 16 Corporate equity issues * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 7.8 7.0 6.1 16 17 Excess net investment 3 6.7 13.0 .4 -1.6 -5.0 -9.1 -17.3 -15.8 -13.1 -23.6 -2.6 -14.8 17 Households 18 Total capital outlays 89.6 94.2 94.6 109.7 117.8 116.2 136.4 158.8 174.1 176.2 172.1 165.2 18 19 Capital consumption 59.9 64.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 114.4 117.1 117.2 19 20 Net physical investment 29.7 29.9 24.7 32.5 33.0 24.7 37.8 52.7 58.4 61.8 55.0 48.1 20 21 Net funds raised 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 73.3 72.3 53.1 21 22 Excess net investment 3 1.4 7.2 5.4 2.5 1.3 1.4 -2.1 -10.4 -14.4 -11.5 -17.3 -5.0 22 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 5) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FH A, 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 nonfinancial corporations plus bankers' acceptances. Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Transaction category, or sector 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 Total net advances 8.9 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 41.0 25.4 38.9 2 3 U.S. Government securities 3.7 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 20.6 1.3 9.0 3 4 Residential mortgages .4 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 5.0 10.2 11.4 4 5 FHLB advances to S&L's .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 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 Foreign .1 -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 -10.1 10.2 10 11 Agency borrowing not included in line 1 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 17.4 21.8 14.1 11 Private domestic funds advanced 12 Total net advances 62.8 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 168.8 164.2 157.5 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 institutions 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 179.0 138.7 142.1 19 20 Commercial banking 28.7 17.5 35.9 38.7 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 Other sources 16.6 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40.2 44.6 32.7 27 28 Foreign funds .8 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 5.2 7.7 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 Deposits and currency 40.5 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 108.0 69.6 96.5 38 39 Time and savings accounts 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 94.4 58.1 85.6 39 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 1 Total net issues 3.5 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 9.7 6.4 9.4 ! 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 • DECEMBER 1974 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1973 1974 LLiinnee CCrreeddiittss ((++)),, ddeebbiittss ((--)) 11997711 11997722 11997733 II III IV I UP 1 Merchandise trade balance i -2,722 -6,986 471 -363 578 1,210 -74 -1,631 2 Exports 42,754 48,768 70,277 16,679 18,152 20,216 22,299 24,089 3 -45,476 -55,754 -69,806 -17,042 -17,574 -19,006 -22,373 -25,720 4 Military transactions, net -2,908 -3,604 -2,201 -763 -547 -58 -493 -636 5 Travel and transportation, net -2,341 -3,055 -2,710 -781 -613 -630 -502 -612 6 Investment income, net 2 5,021 4,526 5,291 1,208 1,257 1,378 3,076 1,780 7 U.S. direct investments abroad 2 . 6,385 6,925 9,415 2,210 2,323 2,688 4,619 4,449 8 Other U.S. investments abroad 3,444 3,494 4,569 1,098 1,179 1,292 1,500 1,823 9 Foreign investments in the United States 2 -4,809 -5,893 -8,693 -2,100 -2,245 -2,602 -3,043 -4,492 10 Other services, net 2 2,781 3,110 3,540 815 984 901 921 977 11 Balance on goods and services 3 -170 -6,009 4,391 / 116 1,659 2,801 2,928 -122 \ 228 -195 3,865 4,029 63 12 Remittances, pensions, and other transfers -1,604 -1,624 -1,943 -411 -412 -717 -390 -461 13 -1,774 -7,634 2,448 J -295 1,247 2,084 2,538 -583 \ -187 -623 3,142 3,665 -401 14 U.S. Government grants (excluding military) -2,043 -2,173 -1,933 -645 -485 -447 4-2,561 -1,395 15 Balance on current account -3,817 -9,807 515 / -940 762 1,637 4 -23 -1,978 \ -872 -1,071 2,717 1,086 -1,838 16 U.S. Government capital flows excluding nonscheduled repayments, net 5 -2,111 -1,705 -2,938 -565 -608 -1,066 4 1,307 287 17 222277 113377 228899 117744 4 * * 18 U.S. Government nonliquid liabilities to other than foreign -478 238 1,111 485 206 204 36 101 19 -4,381 -98 127 -315 1,529 -1,406 466 -1,150 20 U.S. direct investments abroad -4,943 -3,517 -4,872 -973 -710 -1,374 -627 -1,552 21 Foreign direct investments in the United States -115 383 2,537 588 886 712 1,281 1,516 22 Foreign securities -966 -654 -807 -124 -209 -525 -646 -357 23 U.S. securities other than Treasury issues 2,289 4,507 4,501 489 1,173 670 687 397 24 Other, reported by U.S. banks -862 -1,158 -581 -239 227 -459 -26 880 25 Other, reported by U.S. nonbanking concerns 216 341 -200 -56 162 -430 -203 -274 26 BBaallaannccee oonn ccuurrrreenntt aaccccoouunntt aanndd lloonngg--tteerrmm ccaappiittaall 55 -10,559 -11,235 -896 f —1,161 1,893 -631 1,786 -2,740 \-1,184 224 1,109 2,163 -2,692 27 Nonliquid short-term private capital flows, net -2,347 -1,541 -4,276 -1,457 97 -1,253 -3,963 -5,468 28 Claims reported by U.S. banks -1,802 -1,457 -3,940 -1,399 222 -1,119 -2,790 -5,168 29 Claims reported by U.S. nonbanking concerns -530 -305 -1,240 -59 -460 -664 -1,636 -460 30 Liabilities reported by U.S. nonbanking concerns -15 221 904 1 335 530 463 160 31 Allocations of Special Drawing Rights (SDR's) 717 710 32 Errors and omissions, net -9,776 -1,790 -2,624 908 -364 925 i ,209 1,979 33 -21,965 -13,856 -7,796 J-l, 710 -1,626 -959 -968 -6,229 \ -2,038 611 -179 -158 -6,609 34 Liquid private capital flows, net -7,788 3,502 2,492 1,997 316 3,620 2,030 1,700 35 -1,097 -1,247 -1,944 923 -521 -493 -2,600 -1,120 36 Reported by U.S. banks -566 -742 -1,103 966 -456 -472 -2,239 -1,246 37 Reported by U.S. nonbanking concerns -531 -505 -841 -73 -65 -21 -361 126 38 Liquid liabilities— -6,691 4,749 4,436 1,074 837 4,113 4,630 2,820 39 Foreign commercial banks -6,908 3,716 2,978 723 699 3,229 4,616 1,977 40 International and regional organizations 682 104 376 31 -50 384 -585 292 41 Other foreigners -465 929 1,082 320 188 500 599 551 42 Official reserve transactions balance, financed by changes in— -29,753 -10,354 -5,304 / 287 1,942 2,661 1,062 4,529 I 769 939 2,982 1,495 -4,104 43 Liquid liabilities to foreign official agencies 27,615 9,734 4,452 -730 --11,,448888 --22,,114455 -573 44,,226622 44 Other readily marketable liabilities to foreign official agencies 6 -551 399 11,,111188 259 11 -354 -277 182 45 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt 341 189 -475 167 -452 -147 -2 443 46 2,348 32 209 17 -13 -15 -210 -358 47 Gold 866 547 48 SDR's -249 -703 9 9 —29 49 Convertible currencies 381 35 233 — 1 —85 50 Gold tranche position in IMF 1,350 153 -33 8 -13 -15 -209 -244 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14) 33,,220044 4,189 22,,777722 833 758 487 393 543 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) 33,,115577 44,,552211 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21) 449988 554488 Balances excluding allocations of SDR's: 54 Net liquidity -22,682 -14,566 -7,796 -2,038 611 -179 -158 -6,609 55 Official reserve transactions -30,470 ' -11,064' -5,304' 769 939 2,982 1,495 -4,104 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • FOREIGN TRADE; U.S. RESERVE ASSETS A 61 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports ] Imports Trade balance 1971 1972 1973 1974 1971 1972 1973 1974 1971 1972 1973 1974 Month: Jan.... 3,601 4,074 4,955 7,111 3,599 4,436 5,244 6,467 2 -361 -289 644 Feb... 3,695 3,824 5,070 7,606 3,564 4,473 5,483 7,392 130 -649 -413 213 Mar... 3,790 3,869 5,311 7,674 3,628 4,515 5,414 7,845 160 -647 -103 -171 Apr... 3,631 3,820 5,494 8,234 3,774 4,417 5,360 8,141 -143 -596 + 133 93 May.. 3,746 3,882 5,561 7,630 3,908 4,486 5,703 8,407 -161 -604 -142 -777 June.. 3,672 3,971 5,728 8,357 4,037 4,468 5,775 8,613 -365 -497 -47 -256 July... 3,573 4,074 5,865 8,307 3,832 4,565 5,829 9,036 -259 -491 + 37 -728 Aug... 3,667 4,197 6,042 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 8,665 3,469 4,738 5,996 8,635 -800 -421 + 589 29 Nov... 3,196 4,473 6,879 3,456 5,148 6,684 -260 -675 + 195 Dec... 3,881 4,558 6,949 4,169 5,002 6,291 -288 -444 +658 Quarter: I 11,086 11,767 15,337 22,390 10,792 13,403 16,140 21,704 294 -1,657 -804 686 I I 11,049 11,673 16,783 24,220 11,719 13,370 16,838 25,161 -670 -1,697 -56 -940 III.... 11,727 12,447 18,327 24,963 11,924 13,903 17,483 27,057 -197 -1,456 +845 --22,,009944 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) EE yy nn ee dd aa rr oo ff Total Tot G al o 2 ld st T oc r k ea 1 s ury v c fo u e C c r r r i o t e r e i n i e s b g n - l n e - pp RR oo II ee ss MM ss ii ii nn ee tt FF rr iioo vv nn ee SDR's3 E m n o d n t o h f Total Tot G al o 2 l d s T to r c e k a sury v c fo u e C c r r r i o e t e r i n i s e b g 4 - n l n e - p R o e s s i e t r io v n e SDR's3 1960... 19,359 17,804 17,767 11,,555555 1973 1961... 18,753 16,947 * 16,889 116 11,,669900 Nov... 14,373 11,652 11,567 547 2,166 1962... 17,220 16,057 15,978 99 11,,006644 Dec.. 14,378 11,652 11,567 552 2,166 1963... 16,843 15,596 15,513 212 11,,003355 1964... 16,672 15,471 15,388 432 776699 1974 Jan.. . 14,565 11,652 11,567 59 688 2,166 1965... 15,450 13,806 13,733 781 863 Feb... 14,643 11,652 11,567 68 757 2,166 1966... 14,882 13,235 13,159 1,321 326 Mar... 14,588 11,652 11,567 9 761 2,166 1967... 14,830 12,065 11,982 2,345 420 Apr.. . r14,642 11,652 11,567 9 824 r2,157 1968... 15,710 10,892 10,367 3,528 1,290 May.. 14,870 11,652 11,567 66 989 2,163 1969... 5 16,964 11,859 10,367 5 2,781 2,324 June.. 14,946 11,652 11,567 94 1,005 2,195 July... 14,912 11,652 11,567 12 1,021 2,227 1970... 14,487 11,072 10,732 629 1,935 851 Aug. . 15,460 11,652 11,567 224 1,384 2,200 1971... 612,167 10,206 10,132 6 276 585 1,100 Sept... 15,893 11,652 11,567 246 1,713 2,282 19727. . 13,151 10,487 10,410 241 465 1,958 Oct.. . 15,890 11,652 11,567 193 1,739 2,306 19738 . . 14,378 11,652 11,567 8 552 2,166 Nov... 15,840 11,652 11,567 43 1,816 9 2,329 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR's $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 8 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million) 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR's $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 9 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR's. of 16 member countries. The U.S. SDR holdings and reserve position 4 For holdings of F.R. Banks only, see p. A-ll. in the IMF are also valued on this basis beginning July 1974. At valua- 5 Includes gain of $67 million resulting from revaluation of the German tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end mark in Oct. 1969, of which $13 million represents gain on mark holdings of Nov. amounted to $2,326 million, reserve position in IMF $1,807 at time of revaluation. million, and total U.S. reserve assets $15,828 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 • DECEMBER 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 IV I II III Western Europe: --8822 -----------5555555555555555555555 ----111100000000 --2255 44 -----------4444444444400000000000 ----88883333 ---555888 ---111111000 --551188 -----------444444444440000000000055555555555 ----888888884444 --660011 666000000 333332222255555 --112299 ---444777333 -----------222222222222222222222255555555555 555550000000000 -------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 Bank for Intl. Settlements.. 222000000 Other 11 --66 --3355 --4499 1166 --4477 111111 --2299 --1133 TToottaall --339999 --8888 --11,,229999 ------666666555555999999 -----999998888800000 -----666666666699999 996699 --220044 --779966 Canada 222222000000000000 111115555500000 5555500000 Latin American republics: Argentina ---333000 ------333333999999 -----11111 -----2222255555***** --2255 ----22228888 Brazil 777222 555444 2222255555 ------333333 -----11111 ----22223333 Colombia 111000 2222299999 777777 ** 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 --11 -------99999995555555 ----33335555 Malaysia -------33333334444444 ----11110000 Philippines 2255 2200 ** --11 9999999 4400 --44 ----2222 -------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 ---888444555 ---333 Intl Monetary Fund^ 5555----222222225555 111177777777 22222222 ----3333 11110000 ----111155556666 ---222222 ---555444444 Grand total --339922 --3366 ----1111,,,,555544447777 ----444433331111 ----1111,,,,000000009999 ----1111,,,,111122221111 999966667777 6666----777788887777 ---888666777 ---555444777 1 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

DECEMBER 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 Total a a t c f r I r g t r i M a i o s o o n i l m n n d F s s g - 1 Total t p S l b i i t o e h a a e b i s r b o r n n t y m r i r k e l t e i d s - - - M n T b U o a a o a r t b r n e n . e S k a l d d s e . s e s 3 . t - N v k T b o e e U c n o a r r t o n n e m t a . n S i a b d d b - a . s l s l . r e e - N n v k T b o o n e e U n o a r n r o t n n e t a . m c t S i a b d d e o b . a s s l n s l . e r e 4 - - m r l O i e t a a a a i t r b b e h d k l s i e i e l 5 e l i r y t - - a t m L l o b b i a e i r a t c q i r b o n e o c u i a s k m l i i d a i s d - l 6 - Total t p S l b i i t o h a e a e b i r s b o r n n t y m r i r k e l t e i d s - - - n M T b o U a a o a r t b r e e n n .S k l s a d d e 3 . e s s . • t - 7 U.S. notes U.S. 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 J26,433 800 14,459 12,467 1,217 703 63 9 5,817 3,397 3,046 \26,394 800 14,425 12,467 1,183 703 63 9 5,817 3,387 3,046 /29,313 800 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 1,201 334 120 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 14,034 908 711 741 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 /38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 138,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 o/45,755 1,019 1015,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 \V4 5,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 J47.009 566 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 J67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 167,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 82,862 61.526 40,000 5,236 12,108 3,639 14,666 5,043 4,618 93,035 69,702 45,212 6,929 12,319 3.233 2,009 15,958 5,554 5,180 92,413 67,400 43,791 6,207 12,319 3.234 1,849 17,282 5,721 5,311 92,391 66,810 43,919 5,701 12,319 3,210 1,661 17,647 5,931 5,501 89,900 63,871 41,556 5,229 12.321 3,210 1,555 18,040 6,067 5,618 91,857 64,100 41,992 5,192 12.322 3,210 1,384 19,715 6,249 5,839 95,572 65.527 43,412 5,192 12.329 3,210 1,384 22,056 6,571 6,171 97,368 67,154 45,175 5,020 12.330 3,210 1,419 22,103 6,816 6,399 100,929 68,160 46,177 5,013 12,330 3,210 1,430 24,316 6,906 6,540 103,731 69,994 47,430 5,013 12,330 3,655 1,566 24,854 7,173 6,810 106,757 71,091 48,447 5,013 12,330 3,655 1,646 26,517 7,338 6,961 109,751 70,970 48,400 4,940 12,330 3,655 1,645 29,224 7,523 7,157 110,146 72,581 50,107 4,880 12,330 3,655 1,609 27,583 8,051 7,658 111,729 73,643 50,813 4,880 12,330 3,867 1,753 27,901 8,125 7,694 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 to 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. • DECEMBER 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 i 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 2 196 7 18,194 10,321 1,310 1,582 4,428 250 303 /17,407 8,070 1,867 1,865 5,043 259 303 1968 3 \17,340 8,062 1,866 1,865 4,997 248 302 15,975 4 7,074 1,624 1,888 4,552 546 291 1969 3 15,998 4 7,074 1,624 1,911 4,552 546 291 1970 3 J 1 2 2 3 3, , 7 7 7 8 5 6 1 13 3 , , 6 6 1 2 5 0 2 2 , , 9 9 5 5 1 1 1 1 , , 6 6 8 8 1 1 4 4, , 7 7 0 1 8 3 4 4 0 0 7 7 4 41 1 3 4 f51,209 30,010 3,980 1,414 14,519 415 871 1971 5 \50,651 30,134 3,980 1,429 13,823 415 870 197 2 61.526 34,197 4,279 1,733 17,577 777 2,963 1973—Oct.. . 69,702 47,514 3,851 1,938 12,601 735 3,063 Nov.., 67,400 46,002 3,820 2,233 11,474 785 3,086 Dec... 66,810 45,717 3,853 2,544 10,884 788 3,024 1974—Jan.. . 63,871 43,270 3,945 2,446 10,479 838 2,893 Feb.'. 64,100 42,391 4,262 2,744 10,878 1,000 2,825 Mar.r, 65.527 42,772 4,195 2,887 11,631 1,249 2,793 Apr.r. 67,154 42,638 4,309 3,532 12,360 1,402 2,913 May.r 68,160 42,961 4,302 3,384 12,988 1,620 2,905 June r. 69,994 43,200 4,201 4,006 13,992 1,854 2,741 July. 71,091 43,002 4,125 3,951 15,209 2,055 2,749 Aug... 70,970 42,292 3,953 4,127 15,526 2,272 2,800 Sept.P 72,581 42,675 3,819 4,421 16,162 2,850 2,654 Oct.P. 73,643 43,025 3,809 3,986 17,187 2,947 2,689 * Includes Bank for International Settlements and European Fund. to official institutions of foreign countries have been increased in value by 2 Includes countries in Oceania and Eastern Europe, and Western Euro- $110 million to reflect market exchange rates as of Dec. 31, 1971. pean dependencies in Latin America. 3 See note 9 to Table 5. NOTE.—Data represent short- and long-term liabilities to the official 4 Includes $101 million increase in dollar value of foreign currency institutions of foreign countries, as reported by banks in the United States; liabilities resulting from revaluation of the German mark in Oct. 1969. foreign official holdings of marketable and nonmarketable U.S. Treasury 5 Data on second line differ from those on the first line because certain securities with an original maturity of more than 1 year, except for 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. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations6 Payable in dollars IMF Deposits Payable gold U.S. Total i Total Dem D an e d p os T its i me2 b T i c r c l e U l e a s r a t . t S s e i a u f s . i n r - 3 d y s O l t h i e t a o r h b r m e . t r 4 - f r o e c r n i u e n c r i i - g e n s in m v e es n t t - 5 Total Demand Time2 b T i c r l c e l e s a r a t t s i e a u f s i n r - d y 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 J41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 /55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 \55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 60,697 60,201 8,290 5,603 31,850 14,458 496 1,413 96 202 326 68,117 67,541 9,111 6,626 32,869 18,935 577 1,768 70 90 173 68,346 67,724 9,852 6,709 31,977 19,185 622 1,962 73 94 373 69,022 68,425 11,310 6,863 31,886 18,366 597 1,955 101 83 296 67,067 66,427 10,826 6,809 29,543 19,249 640 1,853 95 89 286 69,239 68,470 11,477 6,855 30,274 19,864 770 1,693 77 63 232 72,790 72,024 11,656 6,986 31,444 21,938 766 1,151 96 63 227 74,787 74,080 11,981 7,324 32,676 22,099 706 1,109 60 57 209 78,365 77,712 11,675 7,629 33,983 24,425 653 1,333 95 53 46 80,687 79,895 12,860 8,274 34,038 24,723 792 1,593 106 64 91 83,610 82,944 12.227 8,661 34.178 27,877 666 1,685 121 66 51 86,642 85,897 11,848 9,091 33.179 31,778 746 1,861 81 68 146 87,188 86,493 12,771 9,214 33,473 31,035 696 1,840 128 69 75 88,345 87,625 11.228 9,777 34,187 32,432 720 1,937 125 89 93 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 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 me2 T b c i r c l e U e a l r s a t . t s S e i a u f s . n i 3 r - d y s O l t i h 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 ime2 T bi c r c l U e e a ls r a t . t S e s a i s u . f n i 3 r - 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 f40,499 15,716 5,765 13,511 5,138 368 19,333 1,652 2,554 13,367 1,612 140,541 15,726 5,802 13,511 5,133 368 19,333 1,652 2,554 13,367 1,612 /53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32.311 3,177 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 66,350 9,040 6,536 32,696 17,501 577 45,212 1,811 3,846 32,613 6,814 66,384 9,780 6,615 31,604 17,763 622 43,791 2,036 3,802 31,529 6,298 67,067 11,209 6,780 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 65,214 10,731 6,720 29,257 17,865 640 41,556 2,379 3,705 29,152 6,192 67,546 11,399 6,792 30,042 18,543 770 41,992 2,408 3,703 29,917 5,836 71,639 11,559 6,924 31,217 21,173 766 43,412 2,631 3,800 31,064 5,790 73,677 11,921 7,267 32,467 21,315 706 45,175 2,920 3,949 32.312 5,867 77,033 11,580 7,576 33,937 23,287 653 46,177 2,352 4,025 33,731 5,941 79,094 12,753 8,210 33,947 23,391 792 47,430 2,643 4,277 33,745 6,638 81,925 12,107 8,596 34,128 26,429 666 48,447 2,561 4,463 33,749 7,547 84,781 11,767 9,023 33,033 30,212 746 48,400 2,473 4,447 32,687 8,665 85,348 12,643 9,145 33,398 29,466 696 50,107 2,824 4,311 32,955 9,890 86,408 11,104 9,688 34,094 30,802 720 50,813 2,168 4,471 33,634 10,412 To banksio To other foreigners Payable in dollars End of period Total Total Dema D nd ep osi T ts i me2 T b c i r c l e U e l a r s a . t t s S e i a u f . s n i r - d y s O l t i h e a t o r h b r m e . t 4 r - Total Dema D nd ep osi T ts i me2 T b c i r c l e U e l a r s a . t t s S e i a u f . s n i r - d y s O l t h i e a t o r h b r m e . t 4 r - 27,709 23,419 16,756 1,999 4,644 4,064 1,711 1,935 107 312 J21,166 16,917 12,376 1,326 3,202 4,029 1,688 1,886 131 325 121,208 16,949 12,385 1,354 3,197 4,039 1,688 1,895 131 325 /13,953 10,034 7,047 850 2,130 3,691 1,660 1,663 96 274 \14,643 10,721 3,399 320 6,995 3,694 1,660 1,666 96 271 19,284 14,340 4,658 405 9,272 4,618 1,955 2,116 65 481 21,138 15,509 5,250 479 9,774 5,179 1,980 2,211 76 912 22,593 16,787 5,734 495 10,550 5,310 2,010 2,318 67 915 23,147 17,178 6,941 515 11 9,710 5,500 2,143 2,353 68 936 23,658 17,527 6,329 517 14 10,668 5,618 2,024 2,498 91 1,005 25,554 19,072 6,853 526 32 11,662 5,840 2,139 2,563 93 1,045 28,226 21,417 6,573 511 54 14,279 6,171 2,356 2,613 98 1,104 28,503 21,524 6,603 683 63 14,174 6,400 2,398 2,635 92 1 ,274 30,856 23,790 6,913 795 82 16,000 6,540 2,315 2,756 124 1,346 31,664 24,190 7,692 1,004 95 15,398 6,810 2,419 2,929 107 1 ,355 33,478 25,978 7,110 1,165 204 17,499 6,961 2,436 2,967 175 1,383 36,381 28,606 6,897 1,426 200 20,083 7,156 2,397 3,150 145 1,464 35,242 27,014 7,098 1,576 258 18,082 7,659 2,722 3,258 185 1,495 35,595 27,309 6,361 1,796 268 18,884 7,694 2,574 3,422 193 1 ,505 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 Through 1971 (first line) principally bankers' acceptances, commercial as "Official institutions" are included in "Banks"; and (c) a number of paper, and negotiable time certificates of deposit. See also note 8(a). reporting banks are included in the series for the first time. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of 9 Foreign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac- 10 Excludes central banks, which are included in "Official institutions." quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop- NOTE.—"Short term" refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 9. Data exclude the "holdings of dollars" IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti- 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American 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. • DECEMBER 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. Feb.' Mar.r Apr.r Mayr Juner July Aug. Sept.? Oct. Europe: Austria 272 161 279 327 248 298 310 482 528 595 566 Belgium-Luxembourg 1,094 1,483 1,662 1,572 1,795 1,739 1,827 1,819 1,928 1,924 2,038 Denmark 284 659 456 380 358 261 266 239 251 268 285 Finland 163 165 160 169 140 143 174 203 229 219 223 France 4,441 3,483 2,967 2,852 2,767 3,019 3,425 3,763 3,611 3,561 3,920 Germany 5,346 13,227 12,357 12,275 13,035 13,778 13,528 12,602 11,873 9,337 8,623 Greece 238 389 238 343 285 239 232 222 298 293 255 Italy 1,338 1,404 1,119 2,243 1,386 1,435 1,281 1,327 1,101 3,138 2,748 Netherlands 1,468 2,886 2,502 2,547 2,507 2,407 2,352 2,232 2,234 2,498 3,009 Norway 978 965 962 993 923 923 911 878 894 1,023 1,131 Portugal 416 534 486 450 450 452 411 429 422 435 411 Spain 256 305 304 267 289 365 324 362 303 377 347 Sweden 1,184 1,885 1,973 1,733 1,475 1,350 1,211 1,160 1,049 1,096 1,071 Switzerland 2,857 3,377 3,513 3,792 4,228 5,138 6,386 7,216 7,850 8,061 8,847 Turkey 97 98 146 96 92 95 125 134 106 100 121 United Kingdom 5,011 6,148 6,186 7,392 7,697 8,792 8,533 8,294 8,969 8,606 7,562 Yugoslavia 117 86 94 78 82 86 100 106 100 151 136 Other Western Europe i 1,483 3,352 3,007 2,946 3,003 2,639 2,701 2,851 2,829 3,249 3,329 U.S.S.R 11 22 20 29 52 28 27 27 26 40 44 Other Eastern Europe 81 110 96 122 95 104 126 133 147 149 136 Total 27,136 40,742 38,525 40,605 40,905 43,292 44,249 44,479 44,749 45,120 44,803 Canada 3,432 3,627 4,217 3,640 4,350 3,983 3,550 3,595 3,250 3,754 4,226 Latin America: Argentina 638 924 905 1,012 1,071 1,194 1,379 1,252 1 ,189 1,105 1,017 Bahamas 2 540 824 1,012 2,017 1,336 1,946 1,487 1,546 3,201 1,155 1,672 Brazil 605 860 961 837 774 731 782 778 817 873 894 Chile 137 158 175 187 226 193 240 279 253 266 270 Colombia 210 247 238 238 227 227 217 264 285 293 292 Cuba 6 7 8 7 6 6 6 7 6 7 6 Mexico 831 1,285 1,345 1,372 1,379 1,417 1,412 1,411 1,610 1,643 1,731 Panama 167 282 357 433 444 559 559 566 445 511 484 Peru 225 135 154 159 160 162 166 197 185 182 177 Uruguay 140 120 115 121 121 132 121 122 115 120 128 Venezuela 1,078 1,468 1,636 1,736 2,297 2,248 2,708 2,600 2,999 3,217 2,932 Other Latin American republics 861 884 1,032 1,106 1,151 1,059 1,080 1,183 1,066 1,217 1,115 Netherlands Antilles and Surinam 86 71 61 69 63 95 124 92 103 123 138 Other Latin America 44 359 792 659 566 424 450 671 825 546 478 Total 5,568 7,626 8,791 9,951 9,821 10,393 10,732 10,964 13,099 11,256 11,335 Asia: China, People's Rep. of (China Mainland) 39 38 39 38 39 39 33 39 40 40 43 China, Republic of (Taiwan) 675 757 715 641 573 620 688 772 842 822 797 Hong Kong 318 372 416 452 453 512 462 470 490 621 470 India 98 85 183 133 177 264 225 172 131 158 140 , Indonesia 108 133 175 240 305 220 257 863 785 943 1,600 Israel 177 327 311 302 275 267 256 226 211 217 218 Japan 15,843 6,954 7,440 8,307 8,668 9,060 9,419 9,974 9,894 10,115 10,385 Korea 192 195 204 180 253 234 262 215 277 304 313 Philippines 438 515 604 595 642 731 772 762 715 748 726 Thailand 171 247 471 607 536 517 524 451 403 362 328 Other 1,071 1,202 1,196 1,445 1,942 1,886 2,572 3,634 4,272 4,726 4,832 Total 19,131 10,826 11,752 12,940 13,861 14,350 15,470 17,578 18,062 19,055 19,851 Africa: Egypt 24 35 72 52 68 71 84 91 105 73 109 Morocco 12 11 12 17 15 20 39 54 63 79 73 South Africa 115 114 119 148 83 122 102 170 156 157 138 Zaire 21 87 30 42 43 52 58 46 46 43 41 Other 768 808 1,044 1,335 1,500 1,703 1,911 2,042 2,258 2,893 2,973 Total 939 1,056 1,277 1,593 1,709 1,968 2,193 2,403 2,627 3,245 3,333 Other countries: Australia 3,027 3,131 2,917 2,849 2,979 2,980 2,831 2,848 2,926 2,847 2,788 All other 51 59 66 60 52 68 69 58 68 72 71 Total 3,077 3,190 2,984 2,909 3,031 3,047 2,900 2,906 2,994 2,918 2,859 Total foreign countries 59,284 67,067 67,546 71,639 73,677 77,033 79,094 81,925 84,781 85,348 86,408 International and regional: International 3 951 1,627 1,404 863 840 1,038 1,250 1,328 1,512 1,479 1,610 Latin American regional 307 272 228 226 217 226 222 248 257 256 227 Other regional4 156 57 61 62 51 69 122 108 93 103 100 Total 1,413 1,955 1,693 1,151 1,109 1,333 1,593 1,685 1,861 1,840 1,937 Grand Total 60,697 69,022 69,239 72,790 74,787 78,365 80,687 83,610 86,642 87,188 88,345 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1972 1973 1974 1972 1973 1974 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus 2 3 9 19 10 16 39 36 28 Iceland 9 9 12 8 11 3 2 3 3 Ireland, Rep. of 15 17 22 62 53 Lebanon 60 55 55 62 68 Malaysia 25 54 59 58 40 Other Latin American republics: 58 59 93 105 108 Bolivia 53 87 65 68 102 Ryukyu Islands (incl. Okinawa) 6 53 Costa Rica 70 92 75 86 88 Saudi Arabia 80 344 236 i 334 303 Dominican Republic 91 114 104 118 J37 Singapore 45 77 53 j 141 165 Ecuador 62 121 109 92 90 Sri Lanka (Ceylon) 6 5 6 1 13 13 El Salvador 83 76 86 90 129 6 4 39 ! 5 40 Guatemala 123 132 127 156 245 185 135 98 ; 88 98 Haiti 23 27 25 21 28 Honduras 50 58 64 56 71 Jamaica 32 41 32 39 52 Other Africa: Nicaragua 66 61 79 99 119 31 32 51 111 110 Paraguay 17 22 26 29 40 Ethiopia (incl. Eritrea) 29 57 75 79 118 Trinidad & Tobago 15 20 17 17 21 11 10 28 20 22 14 23 19 23 20 Ot B h e e r r m L u a d ti a n America: (2) (2) 127 242 201 2 2 9 5 6 39 3 3 0 31 3 2 1 3 4 3 2 1 29 British West Indies 2233 3366 110000 110099 Nigeria 56 85 140 78 Southern Rhodesia 2 2 1 2 1 Other Asia: 5 3 3 3 2 Afghanistan 17 25 19 22 11 Tanzania 6 11 16 12 12 Bahrain 18 24 23 24 11 7 10 11 7 17 Burma 5 2 17 12 Uganda 10 7 19 6 11 Cambodia 2 3 3 2 4 7 28 37 22 Iran 88 93 114 124 243 Iraq 9 10 26 101 All other: Jordan 2 4 4 6 6 New Zealand 27 30 34 39 33 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in "Europe." 3 Data exclude "holdings of dollars" of the International Monetary 5 Represent a partial breakdown of the amounts shown in the "other" Fund. categories (except "Other Eastern Europe"). 6 Included in Japan after Apr. 1972. 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To intl. EEnndd ooff ppeerriioodd Total and Official Other Ger- United Other Total Other All regional Total institu- Banks1 foreign- many King- Europe Latin Japan Asia other tions ers dom America 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 J1,000 562 439 93 259 87 165 63 32 136 1 32 10 \1,018 580 439 93 259 87 165 63 32 136 1 32 10 1973—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.' 1,519 888 631 259 286 86 165 58 231 128 2 35 13 Mar.r 1,577 951 626 259 280 87 165 45 232 130 2 39 13 Apr.r 1,690 1,025 665 294 282 89 165 56 227 152 2 50 13 May r 1,657 1,005 652 296 282 74 165 56 220 144 2 52 13 June r 1,650 974 676 321 283 73 165 56 220 144 2 77 12 July 1,671 978 693 319 299 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 Oct.f 1,334 851 483 114 299 71 170 48 47 116 1 88 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. • DECEMBER 1974 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 Oct. Nov. Dec. Jan. Feb. Mar. Apr. r Mayr Juner July Aug. Sept.33 Oct .v Europe: 7 7 7 7 7 7 7 7 7 9 9 10 10 Sweden 165 165 235 235 260 260 260 260 260 260 260 250 250 Switzerland 37 38 34 33 32 34 33 35 34 35 34 34 30 United Kingdom 290 400 423 437 450 439 457 428 424 426 439 459 485 Other Western Europe 85 85 86 91 91 90 89 87 89 97 101 96 102 Eastern Europe 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 588 700 789 808 845 835 851 823 819 832 849 854 883 Canada 560 567 582 597 832 847 848 849 849 851 756 706 707 Latin America: Latin American republics 9 11 11 11 11 11 11 11 11 11 11 11 11 Other Latin America 3 3 3 3 3 3 3 5 5 5 5 17 25 Total 12 14 14 14 14 14 14 16 16 16 16 28 36 Asia: 5,950 5,143 4,552 4,066 3,718 3,703 3,531 3,499 3,498 3,497 3,498 3,497 3,497 Other Asia 11 11 11 11 11 11 11 12 12 12 12 12 12 Total 5,961 5,154 4,563 4,077 3,729 3,714 3,542 3,510 3,510 3,509 3,510 3,509 3,509 Africa 158 158 158 158 157 157 157 157 157 156 151 151 151 All other 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries 7,303 6,617 6,131 5,678 5,602 5,592 5,437 5,379 5,376 5,390 5,306 5,273 5,311 International and regional: International 6 1 1 20 51 217 141 174 57 51 102 23 71 Latin American regional 47 47 48 49 49 49 44 41 60 75 71 68 52 Total 53 48 49 69 100 267 185 214 117 126 173 91 123 Grand total 7,356 6,665 6,179 4,747 5,702 5,859 5,622 5,594 5,493 5,516 5,479 5,364 5,434 NOTE.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 14). 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans t Foreign End of period Total Total Total O in t f i s f o t i i n c t i s u a - l Banks i 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 e o o a m i f r c g n c a n f a c e o d e c e p r e r c s t - s t - . Other 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 p c n v o r a a d i t m n p t , i c e f e l s e r i . e s - , - Other 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2 13,170 12j328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 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 16 6 3 3 2 2 , ,9 9 7 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—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., 20,726 20,064 7,689 271 4,555 2,863 4,307 4,156 3,912 662 428 119 115 1974—Jan.. 21,101 20,298 7,391 303 4,400 2,688 4,387 4,108 4,412 802 467 162 173 Feb.. 22,986 22,141 7,932 303 4,966 2,662 4,427 4,554 5,228 844 594 121 129 Mar. 25,671 24,823 9,068 421 5,793 2,855 4,642 5,126 5,986 849 545 160 144 Apr. 26,580 25,723 9,578 346 6,141 3,090 4,805 5,810 5,529 857 589 99 169 May 29,745 28,862 9,959 363 6,372 3,223 5,081 6,599 7,223 884 611 113 160 June 32,253 31,296 11,494 386 7,743 3,364 5,107 7,584 7,111 957 687 130 141 July. 33,532 32,529 10,924 475 6,848 3,601 5,152 9,163 7,290 1,003 626 207 170 Aug. 35,057 34,252 11,634 448 7,809 3,377 5,295 9,459 7,864 805 461 180 164 Sept. 33,889 32,971 10,645 523 6,751 3,371 5,243 9,520 7,563 918 468 217 233 Oct.. 33,586 32,556 10,027 348 6,318 3,361 5,355 10,039 7,135 1,030 547 243 240 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

DECEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1972 1973 1974 Area and country Dec. Dec. Feb.' Mar.r Apr.r May r Juner July r Aug. Sept.f Oct.? Europe: Austria 8 11 36 20 40 32 104 18 72 17 21 Belgium-Luxembourg 120 148 143 217 188 155 231 267 208 160 301 Denmark 59 48 60 76 57 68 65 45 49 51 59 Finland 118 108 93 97 115 127 134 150 151 146 128 France 330 621 682 743 721 624 731 703 760 637 476 Germany 321 311 382 395 355 441 422 372 379 342 332 Greece 29 35 36 37 47 48 49 61 66 59 48 Italy 255 316 330 482 507 512 572 437 441 354 340 Netherlands 108 133 147 174 169 202 212 165 112 130 176 Norway 69 72 91 76 91 96 91 103 136 113 94 Portugal 19 23 25 37 29 33 32 30 24 26 35 Spain 207 222 180 284 318 322 404 392 382 253 227 Sweden 164 153 106 121 132 95 117 119 139 159 149 Switzerland 125 176 338 270 327 417 663 386 355 377 277 Turkey 6 10 9 16 18 8 10 26 19 15 15 United Kingdom 997 1,459 1 ,624 2,011 1 ,629 2,175 2,361 2,260 2,513 2,112 1,486 Yugoslavia 22 10 15 12 13 25 20 26 25 28 24 Other Western Europe 20 27 20 22 28 55 26 19 22 18 31 U.S.S.R 41 46 36 33 30 38 47 35 30 21 27 Other Eastern Europe 49 59 65 70 65 95 84 105 106 119 105 Total 3,067 3,988 4,418 5,193 4,878 5,570 6,374 5,720 5,986 5,136 4,349 Canada 1,914 1,955 2,037 2,243 2,191 2,363 2,195 2,340 2,111 2,021 2,556 Latin America: Argentina 379 499 541 681 688 646 673 686 704 695 679 Bahamas i 519 875 1,043 1,289 1,126 1,944 1,887 1,558 2,085 2,471 2,358 Brazil 649 900 958 1,114 1,180 1,316 1,477 1,507 1,522 1,534 1,481 Chile 52 151 155 180 193 175 187 224 231 250 583 Colombia 418 397 432 462 470 488 522 601 679 665 686 Cuba 13 12 11 13 13 13 13 12 13 14 13 Mexico 1,202 1,373 1,422 1,431 1,632 1,660 1,725 1,775 1,833 1,711 1,836 Panama 244 266 297 345 391 407 387 394 401 404 405 Peru 145 178 184 194 224 265 281 353 421 408 433 Uruguay 40 55 51 44 38 38 40 59 50 47 46 Venezuela 383 518 510 586 628 558 606 644 642 627 557 Other Latin American republics 388 493 548 603 621 629 676 691 701 712 724 Netherlands Antilles and Surinam 14 13 19 29 20 27 41 38 56 64 61 Other Latin America 36 140 461 268 281 191 298 234 354 249 517 Total 4,480 5,870 6,634 7,239 7,504' 8,355 8,813 8,778 9,692 9,852 10,380 Asia: China, People's Rep. of (China Mainland) 1 31 19 27 19 18 23 28 22 9 7 China, Republic of (Taiwan) 194 140 147 183 231 318 357 406 446 465 496 Hong Kong 93 147 189 170 179 167 208 200 271 243 214 India 14 16 15 19 18 25 18 20 34 17 19 Indonesia 87 88 107 97 71 105 115 117 120 122 128 Israel 105 166 140 165 140 135 158 205 205 210 200 Japan 4,152 6,400 6,960 7,857 8,607 9,744 10,845 12,397 12,812 12,378 11,674 Korea 296 403 477 498 555 638 620 641 706 733 760 Philippines 149 181 182 197 228 263 302 295 348 340 346 Thailand 191 273 364 405 434 393 421 427 429 438 418 Other 300 394 560 521 671 662 713 820 681 671 665 Total 5,584 8,238 9,159 10,138 11,153 12,467 13,780 15,556 16,073 15,625 14,925 Africa: Egypt 21 35 40 42 44 62 66 68 83 97 93 Morocco 4 5 4 21 9 4 5 14 10 10 11 South Africa 143 129 134 131 153 206 202 213 238 243 282 Zaire 13 60 67 61 79 72 91 93 97 94 107 Other 118 159 175 210 192 223 273 286 275 311 312 Total 299 388 420 466 477 567 637 675 702 755 806 Other countries: Australia 291 243 268 328 318 357 383 400 415 422 478 All other 40 43 49 63 59 66 70 63 77 76 91 Total 330 286 317 391 376 423 453 463 492 498 569 Total foreign countries 15,674 20,725 22,985 25,671 26,579 29,744 32,253 33,531 35,056 33,886 33,585 j j International and regional 3 1 1 1 1 1 2 1 Grand total 15,676 20,726 22,986 25,671 26,580 29,745 32,253 33,532 35,057 33,889 33,586 1 Includes Bermuda through Dec. 1972. their own account or for account of their customers in the United States; NOTE.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities. foreigners, where collection is being made by banks and bankers for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1974 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to- O lo t n h g e - r P f c o u a r y r i e n r 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 l s r - 2 Official Other term cies Total institu- Banksi foreign- claims tions ers 197 0 3,075 2,698 504 236 1,958 352 71 411 312 1,325 115 548 292 197 1 3,667 3,345 575 315 2,455 300 130 593 228 1,458 246 583 429 19723 f [5 4 , , 0 9 6 5 3 4 4 4 , , 5 5 3 8 9 8 8 8 3 4 3 4 4 4 3 3 0 0 3 3 , , 2 3 7 1 6 4 4 3 3 7 5 5 1 1 4 5 5 0 7 70 0 3 4 4 4 0 0 6 6 2 1 , , 0 9 2 9 0 6 3 3 1 5 9 3 9 8 1 8 8 1 5 50 1 3 4 1973—Oct.'.. 5,849 5,095 1,056 540 3,499 474 135 1,016 491 1,995 262 1,236 514 Nov.r. 5,845 5,306 1,143 557 3,607 461 143 1,063 484 2,104 255 1,279 516 Dec.'.. 5,962 5,412 1,145 574 3,692 478 148 1,107 490 2,112 251 1,320 534 1974—Jan.'. . 5,907 5,359 .1,132 563 3,665 469 147 1,109 486 2,078 259 1,319 510 Feb.'. . 5,960 5,359 1,187 584 3,588 522 154 1,166 457 2,087 256 1,328 512 Mar.r. 6,134 5,518 1,262 640 3,616 541 157 1,271 473 2,151 256 1,336 491 Apr.'.. 6,742 6,099 1,552 734 3,814 567 201 1,556 478 2,365 254 1,357 530 May'.. 6,788 6,171 1,549 755 3,867 550 224 1,541 467 2,428 241 1,365 521 June'.. 7,043 6,431 1,600 775 4,056 546 222 1,669 496 2,481 244 1,416 515 July'. . 7,072 6,460 1,469 891 4,099 545 249 1,586 498 2,546 269 1,406 517 Aug 7,011 6,404 1,434 895 4,075 539 285 1,527 503 2,520 269 1,399 509 Sept.f. 6,927 6,314 1,392 834 4,088 542 265 1,510 543 2,463 247 1,397 502 Oct.P. . 7,245 6,566 1,440 914 4,212 608 331 1,727 523 2,489 264 1,397 515 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 ch P a u s r e - s Sales c N h s a e a t s l e p e s u s r o - r ch P a u s r e - s Sales c N ha s e a t s l e p e s s u o r- r ch P a u s r e - s Sales c N h e a s t a se le p s s u o r r regional Total Official Other 197 1 1,672 130 1,542 1,661 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 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 197 3 305 -165 470 465 18,569 13,810 4,759 1,474 2,467 -993 1,729 1,554 176 1974—Jan.-Oct.f -746 -820 -821 13,098 11,533 1 ,565 856 2,635 -1,779 1 ,656 1,527 129 1973—Oc t 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 Apr -237 -82 -155 -171 16 1,126 904 222 103 323 -219 189 155 34 May -28 29 -57 -7 -50 903 852 51 89 154 -64 173 174 -2 June -101 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 July 23 9 14 14 1,048 1,054 -6 94 251 -158 128 116 12 Aug -37 47 -84 -11 1,398 1,130 269 59 214 -157 146 117 29 Sept.f -116 -82 -33 27 1,360 1,180 180 77 153 -76 143 99 44 Oct 70 32 38 38 1,496 1,362 134 86 362 -276 89 152 63 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

DECEMBER 1974 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Other Total Latin Period chases Sales chases or France many lands land King- Europe Europe Canada America Asia Otheri 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.-Oct.P. 6,435 6,041 394 185 24 312 81 -147 37 493 -18 -38 -52 9 1973—Oct 1,369 1,272 96 6 -7 5 -34 68 25 62 -26 16 41 4 Nov 1,482 1,088 394 106 27 54 68 67 6 327 -18 -9 108 -14 Dec 873 878 -4 30 9 32 -64 -25 7 -12 -8 -4 34 -16 1974—Jan 976 802 174 68 4 37 43 28 23 202 -27 -42 33 9 Feb 743 586 157 39 5 54 40 -6 33 165 * 1 -9 1 Mar 896 846 49 14 -26 40 24 14 25 91 -21 9 -29 -1 Apr.r 577 559 19 22 17 35 -3 -14 -35 21 -10 2 3 2 May 576 591 -15 18 7 29 5 -36 -5 19 -7 -15 -14 2 June 521 513 8 -15 8 33 11 -18 -3 16 13 -7 -15 2 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 -1 6 4 -6 1 Oct.f 613 693 80 17 -29 9 -39 -55 11 -87 3 2 9 -7 i 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 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 197 1 703 15 35 -1 216 327 39 631 37 -2 -21 39 197 2 1,881 336 77 74 135 367 315 1,303 82 323 148 197 3 1,948 201 -33 -19 307 275 473 1,204 49 588 52 1974—Jan.-Oct.f, 1,170 91 34 185 84 321 -57 655 44 10 370 1973—Oc t -11 53 1 46 -14 1 86 4 1 -103 D N e o c v -1 -1 3 9 8 4 9 10 -2 4 2 3 8 7 7 6 6 0 32 5 1 1 5 2 2 2 -21 - - 1 2 8 0 3 9 - - 3 3 3 1974—Ja n 89 3 25 23* 117 -9 159 14 -104 18 Feb -144 1 45 -15 30 -2 -5 -119 -47 Mar 139 1 -2 6 -79 -6 -81 6 215 Apr.r 203 60 8 23 17 114 -1 86 May 66 10 28 26 59 5 3 -3 June 242 5 116 15 64 -17 185 4 -3 56 July -5 -1 72 2 36 -11 100 5 7 10 -128 Aug 190 29 -9 21 4 199 -36 Sept.P. . .. 176 1 -1 54 -3 55 2 -15 130 Oct.f 214 10 -1 6 -5 13 5 100 79 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 1971—Sept.. 333 320 1972 -622 -90 -532 505 -635 -69 -296 -66 29 Dec... 311 314 1973 -818 139 -957 -141 -569 -120 -168 3 37 1972—Mar.. 325 379 1974— June., 312 339 Jan.-Oct.p.. -1,650 33 -1,683 -536 -1,342 225 6 19 Sept.. 286 336 Dec... 372 405 1973—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 June.. 316 243 Sept.. 290 255 1974—Jan -291 -4 -287 -81 -204 -2 -1 -1 2 Dec... 333 231 Feb... . -46 6 -52 -62 -11 -9 32 -4 Mar.... -311 4 -315 -24 -288 -15 10 * 3 1974—Mar.. 383 225 Apr.. .. -185 3 -188 -49 -157 6 12 * * June.. 354 241 May... -66 5 -71 -26 -35 -22 10 • 3 Sept.2' 298 178 June... -108 3 -110 -78 -121 -6 94 1 * July.... -146 1 -147 -63 -108 -1 24 -1 3 Aug -125 2 -127 -35 -126 -9 42 -1 1 NOTE.—Data represent the money credit balances and Sept.. -32 12 -44 -37 -37 5 20 1 3 money debit balances appearing on the books of reporting Oct P. .. -340 2 -342 -81 -254 * -18 -1 2 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. • DECEMBER 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- 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—Sept.. 108,296 4,1 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.r. 123,871 4,563 1,510 3,054 114,703 19,497 57,032 2,733 35,441 Feb.' 127,246 4,417 1,615 2,802 117,765 20,341 57,163 2,957 37,304 Mar.' 136,983 7,753 5,150 2,603 124,056 22,401 59,964 3,330 38,360 Apr.' 140,018 5,870 3,350 2,521 128,931 23,179 62,361 3,644 39,747 May ' 145,916 7,893 5,327 2.566 132,513 24,583 64,687 3,703 39,541 Juner 147,465 6,775 4,093 2,682 134,954 25,020 64,434 3,610 41 July. . 145,004 6,523 3,795 2,728 132,771 25,613 61,921 3,688 41,549 Aug.. 148,470 9,559 6,956 2,603 133,038 26,276 60,465 3,422 42,876 Sept.. 148,070 6,578 3,984, 2,594 135,126 26,621 61,098 3,720 43,688 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—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 35,018 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.'. 81,907 4,125 1 ,473 2,651 76,033 13,253 40,027 1,848 20,905 Feb.' 83,913 4,032 2,473 77,963 13,769 40,185 2,024 21,985 Mar.' 92,838 7,347 2,281 83,565 15,798 42,671 2,277 22,818 Apr.r 94,197 5,499 2,197 86,510 16,103 44,379 2,726 23,302 May' 100,264 7,547 2,268 90.202 16,890 47,367 2,841 23,105 June' 101,602 6,453 2,410 92,530 17,378 47,813 2,803 24,535 July. . 101,502 6,232 2,486 92,579 18,367 46,394 2,889 24,929 Aug.. 105,627 9,247 2,343 93,504 19,545 45,627 2,780 25,552 Sept.. 104,740 6,301 2,375 95.203 19,711 46,321 2,873 26,297 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—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, 8,552 33,813 700 13,743 Dec.. 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 1974—Jan... 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 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.' 68,959 2,589 1 ,806 783 64,238 10,819 36.775 ,073 15,572 May ' 71,982 3,792 2,969 823 66,008 11 ,759 37,920 889 15,439 June' 71,305 3,661 2,712 949 65,517 11,886 36,468 812 16,352 July'. 69,197 3,309 2,468 840 63,711 12,486 34,575 718 15,932 Aug.. 70,382 4,008 3,266 741 64,087 12,790 33,929 666 16,701 Sept.. 70,965 3,494 2,721 774 64,962 12,436 34,804 829 16,893 Payable in U.S. dollars. 1971—Dec.. 24,210 2,585 21,277, 4,135 12,572 4,571 1972—Dec.. 30,257 2,146 27,664 4,326 17,874 5,464 1973—Sept.. 34,251 1,348 32,062 5,399 19,759 6,904 Oct.. . 35,511 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 2,499 42,895 8,386 25,768 8,741 May', 49,654 3,693 44,825 9,285 26,994 8,546 June'. 49,363 3,562 44,674 9,425 26,147 9,103 July.. 48,158 3,221 43,798 9,932 24,698 9,169 Aug... 49,406 3,915 44,269 10,529 24,500 9,241 Sept.., 50,075 3,408 45,327 10,305 25,564 9,458 IN BAHAMAS AND CAYMANS i Total, all currencies 1971—Dec... 8,234 1,274 496 777 6,871 3,620 3,251 1972—Dec... 12,642 1,486 214 1,272 10,986 6,663 4,322 1973—Sept.., 20,673 2,280 489 1,791 17,890 10,596 7,294 Oct... 20,698 1,976 272 1,704 18,198 10,618 7,580 Nov.., 21,692 2,528 824 1,704 18,591 10,468 8,123 Dec... 23,771 2,001 313 1,688 21,307 12,302 9,005 1974—Jan..., 24,071 '2,012 228 1,783 21,581 12,232 9,349 Feb... 25,657 1,882 170 1,713 23,262 13,293 9,969 Mar... 28,444 3,299 1,787 1,512 24,534 14,600 9,934 Apr... 28,776 2,280 802 1,478 25,873 15,496 10,376 May. . 30,862 3,164 1,697 1,467 26,953 17,029 9,924 June.. 31,217 2,262 816 1,446 28,168 17,537 10,630 July. . 30,401 2,238 615 1,623 27,348 16,707 10,640 Aug... 32,193 4,409 2,833 1 ,576 27,008 16,017 10,991 Sept... 230,566 1,992 v 478 1,514 27,718 16,500 11,218 Digitized for FRASFEorR n otes see p. A-76 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Other Offi- Non- Month-end Location and currency form Total Parent Other branches Other cial bank bank of parent banks insti- forbank tutions eigners IN ALL FOREIGN COUNTRIES 3,061 658 2,403 54,679 10,743 29,765 5,472 8,699 2,069 . 1971—Dec. ... Total ail currencies, 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 . 1972—Dec. 4,728 1,180 3,548 98,907 '16,555 '57,863 8,635 15,854 4,661 .1973—Sept. 4,680 1,298 3,382 101,719 17,253 59,304 9,073 16,089 4,688 Oct. 4,776 1,084 3,692 107,092 17,726 '63,378 9,553 16,434 5,646 Nov. 5,070 1,158 3,912 111,672 18,231 65,636 10,094 17,711 5,125 Dec. 5,266 1,685 3,581 113,818 18,531 67,849 9,547 17,890 4,756 1974—'Jan. 5,857 2,013 3,844 116,440 19,337 67,584 10,119 19,399 4,949 'Feb. 6,632 2,114 4,517 125,026 21,055 71,948 10,474 21,550 5,324 'Mar. 6,878 2,376 4,503 127,665 22,786 71,619 11,201 22,059 5,474 'Apr. 7,995 2,938 5,057 131,976 23,941 74,508 11,413 22,114 5,944 'May 8,549 3,009 5,540 132,326 24,234 71,956 13,681 22,456 6,589 'June 10,129 4,373 5,757 128,565 25,279 66,915 13,985 22,386 6,309 'July 9,282 3,999 5,282 132,669 25,971 68,894 15,148 22,656 6,519 Aug. 10,399 5,476 4,923 130,939 26,308 66,202 16,21 22,218 6,733 Sept. 2,624 503 2,121 37,024 6,624 21,107 4,391 4,901 1,250 . 1971—Dec. .Payable in U.S. dollars 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 .1972—Dec. 4,146 1,021 3,125 r62,196 10,627 37,260 6,242 8,067 2,269 . 1973—Sept. 4,135 1,139 2,996 63,693 11,312 37,662 6,337 8,382 2,230 Oct. 4,190 928 3,262 68,619 11,877 41,703 6,301 8,738 3,112 Nov. 4,488 993 3,495 73,221 12,571 43,694 7,327 9,629 2,608 Dec. 4,767 1,556 3,211 74,931 12,754 45,001 7,172 10,003 2,473 1974—'Jan. 5,353 1,860 3,493 76,732 13,337 44,458 7,809 11,128 2,468 'Feb. 6,061 1,912 4,149 84,495 15,054 49,077 8,205 12,159 2,799 'Mar. 6,311 2,195 4,116 85,735 15,885 48,257 8,792 12,801 2,913 'Apr. 7,405 2,741 4,664 89,846 16,694 51,148 9,057 12,947 3,461 'May 7,934 2,800 5,135 90,357 17,070 49,134 10,962 13,191 4,009 'June 9,494 4,160 5,334 89,228 18,404 45,796 11,325 13,703 3,673 'July 8,649 3,809 4,840 94,106 19,420 48,501 12,384 13,801 3,941 Aug. 9,712 5,251 4,461 92,595 19,570 46,150 13,274 13,602 4,076 Sept. IN UNITED KINGDOM 1,653 109 1,544 31,814 3,401 18,833 4,454 5,126 760 .1971—Dec. .. .Total, all currencies 1,453 113 1,340 41,020 2,961 24,596 6,433 7,030 994 . 1972—Dec. 2,125 161 1,964 51,957 4,118 31,963 6,929 8,947 1,759 . 1973—Sept. 2,026 129 1,897 53,475 4,036 33,341 7,118 8,980 1,805 Oct. 2,197 143 2,054 57,042 3,886 36,052 7,680 9,424 2,657 Nov. 2,431 136 2,295 57,311 3,944 35,063 8,056 10,248 1,990 Dec. 2,429 346 2,083 59,356 4,350 36,996 7,679 10,332 1,941 1974—Jan. 2,573 269 2,303 58,956 4,193 35,489 8,160 11,112 2,057 Feb. 3,167 353 2,814 63,096 4,587 37,836 8,456 12,217 1,813 Mar. 3,123 409 2,714 63,914 4,975 36,700 9,064 13,175 1,922 'Apr. 3,729 749 2,979 66,156 4,890 39,758 9,11' 12,398 2,097 'May 3,744 606 3,138 65,429 4,913 36,838 11,162 12,516 2,132 'June 3,439 611 2,828 63,557 5,099 34,293 11,643 12,521 2,201 July 3,701 713 2,988 64,309 4,794 33,920 12,737 12,858 2,373 Aug. 3,503 635 2,867 64,919 5,428 33,766 13,544 12,181 2,543 Sept. 1,405 23 1,383 22,852 2,164 13,840 3,666 3,181 372 . 1971—Dec. . Payable in U.S. dollars 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 . 1972—Dec. 1,866 137 1,729 32.213 2,245 19,836 5,110 5,022 807 . 1973—Sept. 1,831 103 1,727 32,781 2,515 20,195 4,934 5,137 730 Oct. 1,940 119 1,821 36,032 2,468 23,059 4,971 5,534 1,555 Nov. 2,173 113 2,060 36,646 2,519 22,135 5,839 6,152 839 Dec. 2,200 329 1,871 37,884 2,846 22,971 5,806 6,262 895 .1974—Jan. 2,346 243 2,103 37,579 2,729 21,464 6,342 7,044 1,006 Feb. 2,927 329 2,598 41,708 3,063 24,300 6,694 7,650 945 Mar. 2,878 384 2,494 42,453 3,234 23,382 7,225 8,612 992 Apr. 3,481 724 2,757 44,625 3,083 26,172 7,306 8,064 1,195 'May 3,516 579 2,937 44.214 3,255 23,795 9,010 8,155 1,239 'June 3.176 568 2,608 43,528 3,364 22,287 9,550 8,326 1,314 July 3,448 692 2,756 44,654 3,278 22,558 10,437 8,382 1,380 Aug. 3.177 605 2,572 45,550 3,667 22,818 11,035 8,030 1 ,486 Sept. IN BAHAMAS AND CAYMANS 1 747 7,305 1,649 4,539 1,116 183 . 1971—Dec. .. .Total, all currencies 1,220 11,260 1,818 8,105 1,338 163 . 1972—Dec. 1,608 18,464 4,321 12,255 1,887 601 . 1973—Sept. 1,663 18,463 4,591 11,902 1,969 572 Oct. 1,559 19,546 4,798 12,973 1,776 588 Nov. 1,517 21,803 5,526 14,453 1,824 451 Dec. 1,848 21,782 5,293 14,569 1,920 441 . 1974—Jan. 2,166 23,026 5,617 15,248 2,161 465 Feb. 2,192 25,692 6,591 16,793 2,309 560 Mar. 2,202 26,095 7,200 16,784 2,111 479 Apr. 2,567 27,704 8,255 16,759 2,690 591 May r2,855 27,732 '7,642 '17,150 2,931 639 June 3,684 26,037 7,663 15,239 3,134 681 ...... ..July 2,772 28,685 8,123 17,400 3,162 736 Aug. 4,139 25,694 7,142 15,133 3,419 733 Sept. Digitized for FRASER For notes see p. A-76. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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 i S n 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 ments 1 ments 1 ,1971 . 294 43,195 13,815 1972. 325 50,934 215,530 1969 1,491 1,062 161 183 86 663 534 1970 1,141 697 150 173 121 372 443 1973— D N e o c v . . . . 4 2 2 5 0 1 5 5 2 2 , , 9 0 9 7 8 0 21 1 7 7 , ,0 1 6 0 8 4 1971 / \ 1 1 , , 6 5 4 0 8 7 1 1 , ,0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 5 7 8 7 0 4 5 4 8 3 7 1974—J F a e n b . . . . . 3 5 9 4 2 2 4 5 9 0 , , 5 25 8 5 2 1 17 7 , , 0 0 3 4 9 4 1972 1 f1 2 , , 9 3 6 7 5 4 1 1 , , 4 9 4 1 6 0 1 5 6 5 9 3 3 0 4 7 0 4 6 2 8 9 7 1 0 1 2 4 5 8 3 5 6 Mar.. 366 51,342 17,037 Apr.. 517 52,642 17,026 1973—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 Nov.. 626 55,908 16,865 Mar 3,701 3,027 99 358 218 1,373 1,029 Apr 3,587 2,981 60 339 209 1,486 922 1 Marketable U.S. Treasury bills, certificates of in- J M u a n y e r.. .. 3 3 , , 6 6 8 7 3 7 3 3 , , 0 0 5 6 1 5 6 7 2 6 3 3 3 6 1 9 2 1 2 8 7 1 1 1 , , 4 4 1 4 9 2 9 9 7 2 9 6 debtedness, notes, and bonds and nonmarketable U.S. July 3,776 3,228 74 341 133 1,441 829 Treasury securities payable in dollars and in foreign Aug 3,499 2,938 49 368 144 1,432 870 cur 2 r e T n h c e i e v s a . lue of earmarked gold increased because of the Sept.L 3,026 2,446 29 362 189 864 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 EEEnnnddd ooofff pppeeerrriiioooddd PPaayyaabbllee PPaayyaabbllee PPaayyaabbllee TToottaall iinn iinn TToottaall iinn ddoollllaarrss ffoorreeiiggnn ddoollllaarrss Deposits with ccuurrrreenncciieess 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.1i / 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,004 4,467 290 247 1972—Mar 2,844 2,407 437 5,177 4,557 318 302 June 2,925 2,452 472 5,331 4,685 376 270 Sept 2,933 2,435 498 5,495 4,833 432 230 i J 3,119 2,635 484 5,723 5,074 411 238 1 3,536 3,024 511 6,366 5,688 396 282 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

DECEMBER 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. Junef 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 51 Cuba 1 * * * * 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 J 8,558 10,608 11,289 i 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. • DECEMBER 1974 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period Total liabilities Total K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n 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 13 5 8 9 3 3 , , 1 1 1 1 8 8 1 1 2 2 8 8 7 70 0 5 5 7 7 6 6 1 7 1 1 7 7 4 4 6 6 0 0 6 65 5 3 2 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.1 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? 3,673 4,037 362 727 ,008 184 137 734 122 492 123 148 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. OPEN MARKET RATES (Per cent per annum) Germany, Switzer- Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks' day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money 3 60-90 money 5 3 months money rate 3 months rates days 4 1972 1... 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—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.b3 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 8.67 8.56 11.95 10.93 10.81 9.50 13.06 5.63 8.88 7.38 7.81. 7.00 Nov 77..8844 77..8866 1122..0077 1100..9988 77..7700 99..5500 1122..4400 77..2200 77..0000 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 $30,291 million and $30,193 million, respectively, on August 31, 1974, rates, which are used to convert foreign currency values into equivalent and $28,573 million and $28,745 million, respectively, on Sept. 30, 1974. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 7.0 Oct. 1974 Canada 8.75 Nov. 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. 6.5 Oct. 1974 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 t United Kingdom—The Bank's minimum lending rate, which is the more than one rate applicable to such discounts or advances, the rate average rate of discount for Treasury bills established at the most recent shown is the one at which it is understood the central bank transacts tender plus one-half per cent rounded to the nearest one-quarter per cent the largest proportion of its credit operations. Other rates for some of above. these countries follow: Venezuela—2 per cent for rediscounts of certain agricultural paper, 4% Argentina—3 and 5 per cent for certain rural and industrial paper, de- per cent for advances against government bonds, and 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—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 Nov 131.10 5.5511 2.6529 101.280 16.997 21.384 39.836 12.397 232.50 .14996 .33325 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—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 Nov 43.075 8.0000 38.438 130.42 18.404 3.9911 143.88 1.7522 23.175 36.384 232.52 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 • DECEMBER 1974 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) Esti- Intl. Esti- China, End of mated Mone- United mated Algeria Argen- Aus- Aus- Bel- Canada Rep. of Den- Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970. 41,275 4,339 11,072 25,865 191 140 239 714 ,470 791 82 64 85 1971. 41,160 4,732 10,206 26,220 192 90 259 729 ,544 792 80 64 85 1972. 44,890 5,830 10,487 28,575 208 152 281 792 ,638 834 87 69 92 1973—Oct.., 6,474 11,652 231 169 312 881 ,781 927 97 77 103 Nov.. 6,476 11,652 231 169 212 881 ,781 927 97 77 103 Dec.. 49,850 6,478 11,652 31,720 231 169 311 881 ,781 927 97 77 103 1974—Jan... 6,478 11,652 231 169 312 882 ,781 927 97 77 103 Feb... 6,478 11,652 231 169 312 882 ,781 927 97 77 103 Mar.. 49,840 6,478 11,652 31,710 231 169 312 882 ,781 927 97 77 103 Apr.. . 6,478 11,652 231 169 312 882 ,781 927 97 77 103 May. . 6,478 11,652 231 169 312 882 ,781 927 97 77 103 June.. 49,835 6,478 11,652 31,705 231 169 312 882 ,781 927 97 77 103 July.., 6,478 11,652 231 169 312 882 ,781 927 97 76 Aug.. 6,478 11,652 231 169 312 882 ,781 927 97 76 Sept.. ^49,830 6,478 11,652 ,700 231 312 882 ,781 927 97 76 Oct.f. 6,478 11,652 231 882 ,781 927 97 76 Ger- End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb- Libya Mexi- Netherperiod Fed. anon lands Rep. of 197 0 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 197 1 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 197 2 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973—Oct.. 261 4,966 148 293 159 173 3,483 89 115 388 103 198 2,294 Nov. 261 4,966 148 293 159 173 3,483 89 105 388 103 198 2,294 Dec. 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 89 130 389 105 154 2,294 Aug. 4,262 4,966 150 293 158 173 3,483 89 130 389 107 2,294 Sept. 4,262 4,966 150 293 158 173 3,483 89 130 389 103 2,294 Oct.2 4,262 4,966 150 158 173 3,483 89 138 389 103 2,294 United Bank End of Paki- Portu- Saudi South Spain Sweden Switzer- Thai- Turkey King- Uru- Vene- for Intl. period stan gal Arabia Africa land land dom guay zuela 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—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 99 151 148 472 259 Aug 66667777 111122229999 777777778888 666600002222 222244444444 3333,,,,555511113333 99999999 111155551111 114488 444477772222 222255555555 Sept 66667777 111122229999 777777778888 666600002222 222244444444 3333,,,,555511113333 99999999 111155551111 444477772222 222255559999 Oct.p 66667777 111122229999 777788886666 666600002222 222244444444 3333,,,,555511113333 99999999 111155551111 444477772222 222277771111 i 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

DECEMBER 1974 • BUSINESS FINANCE A 79 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1972 1973 1974 IInndduussttrryy 11997711 11997722 11997733 II III IV I II III IV I II Total (170 corps.): Sales 334,957 371,946 442,254 93,853 89,550 100,194 102,932 109,967 108,370 120,985 '126,889 143,074 Total revenue 339,134 376,604 448,795 95,271 90,803 101,078 104.139 111,526 109,984 123,108 '128,788 145,213 Profits before taxes 35,771 41,164 53,833 10,467 8,978 12,003 12,695 14,009 12,411 14,742 16,847 18,881 Profits after taxes 19,146 21,753 28,772 5,674 4,936 5,931 6,801 7,491 6,762 7,750 7,739 9,282 Memo: PAT unadj.1 18,020 21,233 28,804 5,687 4,490 5,894 6,754 7,385 6,732 7,930 7,626 9,210 10,104 10,538 11,513 2,598 2,525 2,877 2,646 2,715 2,767 3,393 2,906 2,928 Nondurable goods industries (86 corps.):2 Sales 160,973 176,329 210,118 43,395 43,865 4466,,881155 47,519 50,223 53,168 59,207 '68,860 77,190 163,448 178,915 213,904 44,273 44,689 47,023 48,259 51,191 54,098 60,357 '70,142 78,644 Profits before taxes 19,900 21,799 30,200 4,998 5,278 6,479 6,487 7,129 7,610 8,988 11,880 12,657 Profits after taxes 10,490 11,154 15,538 2,682 2,852 2,946 3,411 3,667 4,018 4,463 5,056 5,728 Memo: PAT unadj. * 10,085 10,859 15,421 2,625 2,574 3,035 3,348 3,597 3,957 4,517 4,957 5,677 Dividends 5,664 5,780 6,103 1,430 1,427 1,476 1,487 1,462 1,527 1,633 1,625 1,645 Durable goods industries (84 corps.):3 Sales.. 173,985 195,618 232,136 50,458 45,685 53,379 55,413 59,744 55,202 61,778 58,029 65,884 Total revenue 175,686 197,690 234,891 50,999 46,115 54,055 55,880 60,335 55,886 62,751 58,646 66,569 Profits before taxes 15,871 19,365 23,633 5,469 3,697 5,524 6,208 6,880 4,801 5,754 4,967 6,225 Profits after taxes 8,656 10,599 13,234 2,992 2,083 2,984 3,390 3,824 2,744 3,287 2,638 3,554 Memo: PAT unadj.1 7,935 10,374 13,383 3,062 1,916 2,859 3,406 3,788 2,775 3,413 2,669 3,533 Dividends 4,440 4,758 5,410 1,168 1,097 1,401 1,159 1,253 1,240 1,760 1,281 1,283 Selected industries: Food and kindred prod. (28 corps.): Sales 34,584 37,624 42,628 99,,222299 99,,553311 1100,,003399 9,561 10,183 11,014 11,871 '11,885 12,729 Total revenue 35,090 38,091 43,198 9,371 9,665 10,115 9,711 10,348 11,201 11,938 '12,110 12,996 Profits before taxes 3,372 3,573 3,957 880 940 960 890 962 1,031 1,067 1,046 1,190 Profits after taxes 1,714 1,845 2,063 454 486 490 470 499 '546 543 529 607 Memo: PAT unadj.1 1,644 1,805 2,074 452 492 452 453 501 '546 573 533 610 Dividends 862 893 935 222 223 227 237 230 236 240 243 248 Chemical and allied prod. (22 corps.): Sales 33,005 36,638 43,208 9,167 9,099 9,593 10,153 10,693 10,828 11,534 12,507 13,829 Total 33,388 37,053 43,784 9,265 9,196 9,723 10,264 10,849 10,968 11,704 12,664 14,059 Profits before taxes 4,123 4,853 6,266 1,184 1,216 1,280 1,487 1,606 1,599 1,572 1,856 2,293 Profits after taxes 2,290 2,672 3,504 667 683 669 838 886 901 883 1,044 1,247 Memo: PAT unadj.1 2,167 2,671 3,469 626 684 712 834 884 871 880 1,031 1,245 Dividends 1,332 1,395 1,496 341 340 378 346 359 374 417 383 405 Petroleum refining (15 corps.): Sales 68,534 74,662 93,505 18,169 18,298 19,925 20,477 21,689 23,586 27,752 36,196 41,463 Total revenue 69,903 76,133 95,722 18,756 18,837 19,845 20,892 22,258 23,988 28,584 37,006 42,361 Profits before taxes 10,835 11,461 17,494 2,433 2,628 3,717 3,514 3,884 4,371 5,724 8,296 8,249 Profits after taxes 5,624 5,562 8,550 1,270 1,398 1,509 1,760 1,899 2,230 2,662 3,098 3,349 Memo: PAT unadj.1 5,519 5,325 8,505 1,273 1,119 1,578 1,737 1,888 2,192 2,688 3,011 3,304 Dividends 2,952 2,992 3,147 742 741 746 777 748 789 832 864 853 Primary metals and prod. (23 corps.): Sales 31,441 34,359 42,400 88,,888866 8,525 99,,009999 9,635 10,784 10,602 11,379 11,888 13,976 Total revenue 31,808 34,797 43,104 8,984 8,629 9,253 9,733 10,891 10,764 11,715 12,045 14,167 Profits before taxes 1,517 1,969 3,221 581 413 589 618 885 799 919 1,232 1,586 Profits after taxes 969 1,195 1,966 372 274 302 383 542 480 561 589 927 Memo: PAT unadj.1 561 1,109 2,039 465 128 256 397 538 496 608 607 942 Dividends 739 653 789 161 162 168 200 178 184 227 221 209 Machinery (27 corps.): Sales 49,206 55,615 65,041 1133,,779966 13,862 1155,,001188 14,828 16,035 16,306 17,871 16,830 18,836 Total revenue 49,846 56,348 65,925 13,993 14,050 15,203 14,997 16,241 16,519 18,168 17,612 19,023 Profits before taxes 5,277 6,358 7,669 1,550 1,583 1,810 1,705 1,880 1,936 2,149 1,829 2,076 Profits after taxes 2,884 3,522 4,236 854 870 1,017 933 1,034 1,069 1,200 1,006 1,151 Memo: PAT unadj.1 2,560 3,388 4,208 848 865 902 931 1,020 1,070 1,188 996 1,137 Dividends 1,450 1,497 1,606 374 375 375 389 401 407 410 441 441 Motor vehicles and equipment (9 corps.): Sales 61,481 70,653 83,016 1188,,995533 1144,,770033 1199,,772255 21,616 22,256 17,959 21,186 18,467 20,979 Total revenue 61,804 71,139 83,671 19,105 14,735 19,946 21,710 22,415 18,142 21,362 18,597 21,146 Profits before taxes 5,648 6,955 7,429 2,290 628 2,019 2,716 2,704 729 1,280 636 1,118 Profits after taxes 2,948 3,626 3,992 1,186 343 1,060 1,405 1,446 431 709 369 657 Memo: PAT unadj.1 2,952 3,640 4,078 1,178 337 1,091 1,429 1,436 450 763 361 648 Dividends 1,433 1,762 2,063 439 365 599 369 473 404 817 380 382 1 Profits after taxes (PAT) as reported by the individual companies. In of returns, allowances, and discounts, and exclude excise taxes paid dicontrast to other profits data in the series, these figures reflect company rectly by the company. Total revenue data include, in addition to sales, variations in accounting treatment of special charges and credits. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes, (not NOTE—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 BULLETIN, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 PETER E. BARNA, Program Director for DIVISION OF RESEARCH AND STATISTICS Bank Holding Company Analysis LEGAL DIVISION ROBERT S. PLOTKIN, Associate Program LYLE E. GRAMLEY, Director D An ir a e l c y t s o is r for Bank Holding Company J A O N H D N R E N W IC O F. L L O , E D H e M p A ut N y N, G A en c e ti r n a g l G C e o n u e n ra se l l Counsel J P A E M TE E R S L M . . P K IE E R IR C , E , A A d ss v o is c e ia r te Director DIVISION OF FEDERAL RESERVE BANK BALDWIN B. TUTTLE, Assistant General JAMES L. KICHLINE, Adviser Counsel STANLEY J. SIGEL, Adviser OPERATIONS CHARLES R. MCNEILL, Assistant to the General MURRAY S. WERNICK, Adviser Counsel KENNETH B. WILLIAMS, Adviser J R A O M N E A S L D R . G K . U B D U L R IN K S E K , I, D A i s r s e o c c t i o a r t e Director ALLEN L. RAIKEN, Adviser E JA D M W E A S RD B . C E . C E K T E T R I T N , , A A ss s o so c c ia ia te te A A d d v v is is e e r r E. MAURICE MCWHIRTER, Associate ROBERT J. LAWRENCE, Associate Adviser Director OFFICE OF SAVER AND ELEANOR J. STOCK WELL, Associate Adviser WALTER A. ALTHAUSEN, Assistant Director CONSUMER AFFAIRS JOSEPH S. ZEISEL, Associate Adviser HARRY A. GUINTER, Assistant Director STEPHEN P. TAYLOR, 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 FWRIALSLEIARM 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 NORMAND 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 GEORGE B. HENRY, Associate Adviser AND REGULATION HELEN B. JUNZ, Associate Adviser KEITH D. ENGSTROM, Director 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. GRAM LEY, Associate Economist J. CHARLES PARTEE, Senior Economist WILLIAM J. HOCTER, Associate Economist STEPHEN H. AXILROD, Economist JAMES PARTHEMOS, Associate Economist (Domestic Finance) JAMES L. PIERCE, Associate Economist JOHN E. REYNOLDS, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager, System Open Market Account FEDERAL ADVISORY COUNCIL THOMAS I. STORRS, FIFTH FEDERAL RESERVE DISTRICT, President JAMES F. ENGLISH, JR., FIRST FEDERAL RESERVE DISTRICT, Vice President GABRIEL HAUGE, SECOND FEDERAL DONALD E. LASATER, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JAMES F. BODINE, THIRD FEDERAL GEORGE H. DIXON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT CLAIR E. FULTZ, FOURTH FEDERAL EUGENE H. ADAMS, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT LAWRENCE A. MERRIGAN, SIXTH FEDERAL LEWIS H. BOND, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ALLEN P. STULTS, SEVENTH FEDERAL HAROLD A. ROGERS, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 83 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch Boston 02106 James S. Duesenberry Frank E. Morris Louis W. Cabot James A. Mcintosh New York 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs Buffalo ....14240 Norman F. Beach A. A. Maclnnes, Jr. Philadelphia 19105 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes Cleveland 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati 45201 Graham E. Marx Robert E. Showalter Pittsburgh 15230 Richard Cyert Robert D. Duggan Richmond 23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall George C. Rankin Baltimore 21203 James G. Harlow Jimmie R. Monhollon Charlotte 28201 Charles W. DeBell Stuart P. Fishburne Culpeper Communications J. Gordon Dickerson, Jr. Center 22701 Atlanta 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham 35202 William C. Bauer Hiram J. Honea Jacksonville 32203 Gert H. W. Schmidt Edward C. Rainey Nashville 37203 Edward J. Boling Jeffrey J. Wells New Orleans 70161 Edwin J. Caplan George C. Guynn Miami Office 33152 W. M. Davis Chicago 60690 William H. Franklin Robert P. Mayo Peter B. Clark Ernest T. Baughman Detroit 48231 W.M. Defoe William C. Conrad St. Louis 63166 Edward J. Schnuck Darryl R. Francis Sam Cooper Eugene A. Leonard Little Rock 72203 W.M. Pierce John F. Breen Louisville 40201 James C. Hendershot Donald L. Henry Memphis 38101 C. Whitney Brown L. Terry Britt Minneapolis 55480 Bruce B. Dayton Bruce K. MacLaury James P. McFarland Clement A. Van Nice Helena 59601 William A. Cordingley Howard L. Knous Kansas City 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boy sen Denver 80217 Maurice B. Mitchell 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 INDUSTRIAL PRODUCTION—1971 edition. 383 pp. FUNCTIONS. 1974. 125 pp. $1.00 each; 10 or $4.00 each; 10 or more to one address, $3.50 each. more to one address, $.75 each. BANK MERGERS & THE REGULATORY AGENCIES: ANNUAL REPORT APPLICATION OF THE BANK MERGER ACT OF 1960. 1964. 260 pp. $1.00 each; 10 or more to FEDERAL RESERVE BULLETIN. Monthly. $20.00 per one address, $.85 each. year or $2.00 each in the United States and its possessions, and in Bolivia, Canada, Chile, Co- THE PERFORMANCE OF BANK HOLDING COMPAlombia, Costa Rica, Cuba, Dominican Republic, NIES. 1967. 29 pp. $.25 each; 10 or more to one Ecuador, Guatemala, Haiti, Republic of Honduras, address, $.20 each. Mexico, Nicaragua, Panama, Paraguay, Peru, El THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 Salvador, Uruguay, and Venezuela; 10 or more of each; 10 or more to one address, $.85 each. same issue to one address, $18.00 per year or $1.75 TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 each. Elsewhere, $24.00 per year or $2.50 each. each; 10 or more to one address, $.85 each. FEDERAL RESERVE CHART BOOK ON FINANCIAL U.S. TREASURY ADVANCE REFUNDING, JUNE AND BUSINESS STATISTICS. Monthly. Subscrip- 1960-JULY 1964. 1966. 65 pp. $.50 each; 10 or tion includes one issue of Historical Chart Book. more to one address, $.40 each. $12.00 per year or $1.25 each in the United States BANK CREDIT-CARD AND CHECK-CREDIT PLANS. and the countries listed above; 10 or more of same 1968. 102 pp. $1.00 each; 10 or more to one issue to one address, $1.00 each. Elsewhere, address, $.85 each. $15.00 per year or $1.50 each. INTEREST RATE EXPECTATIONS: TESTS ON YIELD HISTORICAL CHART BOOK. Issued annually in Sept. SPREADS AMONG SHORT-TERM GOVERNMENT Subscription to monthly chart book includes one SECURITIES. 1968. 83 pp. $.50 each; 10 or more issue. $1.25 each in the United States and countries to one address, $.40 each. listed above; 10 or more to one address, $1.00 each. SURVEY OF FINANCIAL CHARACTERISTICS OF Elsewhere, $1.50 each. CONSUMERS. 1966. 166 pp. $1.00 each; 10 or THE FEDERAL RESERVE ACT, as amended through more to one address, $.85 each. December 1971, with an appendix containing pro- SURVEY OF CHANGES IN FAMILY FINANCES. 1968. visions of certain other statutes affecting the Federal 321 pp. $1.00 each; 10 or more to one address, Reserve System. 252 pp. $1.25. $.85 each. REGULATIONS OF THE BOARD OF GOVERNORS OF REPORT OF THE JOINT TREASURY-FEDERAL RE- SERVE STUDY OF THE U.S. GOVERNMENT SE- THE FEDERAL RESERVE SYSTEM. CURITIES MARKET. 1969. 48 pp. $.25 each; 10 PUBLISHED INTERPRETATIONS OF THE BOARD OF or more to one address, $.20 each. GOVERNORS, as of June 30, 1974. $2.50. JOINT TREASURY-FEDERAL RESERVE STUDY OF DEBITS AND CLEARING STATISTICS AND THEIR USE. THE GOVERNMENT SECURITIES MARKET: 1959. 144 pp. $1.00 each; 10 or more to one STAFF STUDIES—PART 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 each. PART 2. SUPPLEMENT TO BANKING AND MONETARY STA- 1971. 153 pp. and PART 3. 1973. 131 pp. Each TISTICS. Sec. 1. Banks and the Monetary System. volume $1.00; 10 or more to one address, $.85 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. each. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. OPEN MARKET POLICIES AND OPERATING PROCE- $.35. Sec. 6. Bank Income. 1966. 29 pp. $.35. DURES—STAFF STUDIES. 1971. 218 pp. $2.00; Sec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. 10 or more to one address, $1.75 each. Sec. 10. Member Bank Reserves and Related Items. REAPPRAISAL OF THE FEDERAL RESERVE DIS- 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 COUNT MECHANISM, Vol. 1. 1971. 276 pp. Vol. pp. $.35. Sec. 12. Money Rates and Securities 2. 1971. 173 pp. Vol. 3. 1972. 220 pp. Each Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. volume $3.00 each; 10 or more to one address, 24 pp. $.35. Sec. 15. International Finance. 1962. $2.50 each. 92 pp. $.65. Sec. 16 (New). Consumer Credit. 1965. 103 pp. $.65. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 85 THE ECONOMETRICS OF PRICE DETERMINATION RECENT CHANGES IN STRUCTURE OF COMMER- CONFERENCE, October 30-31, 1970, Washington, CIAL BANKING. 3/70. D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 each; MEASURES OF SECURITY CREDIT. 12/70. 10 or more to one address, $4.50 each. Paper ed. MONETARY AGGREGATES AND MONEY MARKET $4.00 each; 10 or more to one address, $3.60 each. CONDITIONS IN OPEN MARKET POLICY. 2/71. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD- ERATE FLUCTUATIONS IN HOUSING CON- INTEREST RATES, CREDIT FLOWS, AND MONETARY STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 AGGREGATES SINCE 1964. 6/71. or more to one address, $3.60 each. INDUSTRIAL PRODUCTION—REVISED AND NEW LENDING FUNCTIONS OF THE FEDERAL RESERVE MEASURES. 7/71. BANKS: A HISTORY, by Howard H. Hackley. 1973. REVISED MEASURES OF MANUFACTURING CAPAC- 271 pp. $3.50 each; 10 or more to one address, ITY UTILIZATION. 10/71. $3.00 each. REVISION OF BANK CREDIT SERIES. 12/71. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. 2/72. STAFF ECONOMIC STUDIES BANK DEBITS, DEPOSITS, AND DEPOSIT TURN- OVER—REVISED SERIES. 7/72. Studies and papers on economic and financial subjects YIELDS ON NEWLY ISSUED CORPORATE BONDS. that are of general interest in the field of economic 9/72. research. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. REVISION OF CONSUMER CREDIT STATISTICS. Summaries only printed in the BULLETIN 10/72. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 (Limited supply of mimeographed copies of full AMENDMENTS. 12/72. text available upon request for single copies) YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5/73. THE IMPACT OF HOLDING COMPANY ACQUISITIONS ON AGGREGATE CONCENTRATION IN BANKING, FEDERAL FISCAL POLICY, 1965-72. 6/73. by Samuel H. Talley. Feb. 1974. 24 pp. CAPACITY UTILIZATION IN MAJOR MATERIALS IN- OPERATING POLICIES OF BANK HOLDING COMPA- DUSTRIES. 8/73. NIES—PART II: NONBANKING SUBSIDIARIES, by CREDIT-CARD AND CHECK-CREDIT PLANS AT COM- Robert J. Lawrence. Mar. 1974. 59 pp. MERCIAL BANKS. 9/73. SHORT-RUN VARIATIONS IN THE MONEY STOCK- RATES ON CONSUMER INSTALMENT LOANS. 9/73. SEASONAL OR CYCLICAL? by Herbert M. Kauf- NEW SERIES FOR LARGE MANUFACTURING CORman and Raymond E. Lombra. June 1974. 27 pp. PORATIONS. 10/73. MONEY SUPPLY IN THE CONDUCT OF MONETARY Printed in full in the BULLETIN POLICY. 11/73. U.S. ENERGY SUPPLIES AND USES, Staff Economic Staff Economic Studies shown in list below. Study by Clayton Gehman. 12/73. (Except for Staff Papers, Staff Economic Studies, and RECENT DEVELOPMENTS IN THE U.S. BALANCE OF some leading articles, most of the articles reprinted do PAYMENTS. 4/74. not exceed 12 pages.) CHANGES IN BANK LENDING PRACTICES, 1973. 4/74. CAPACITY UTILIZATION FOR MAJOR MATERIALS: REPRINTS REVISED MEASURES. 4/74. OPEN MARKET OPERATIONS IN 1973. 5/74. SEASONAL FACTORS AFFECTING BANK RESERVES. NUMERICAL SPECIFICATIONS OF FINANCIAL VARI- 2/58. ABLES AND THEIR ROLE IN MONETARY POLICY. 5/74. MEASURES OF MEMBER BANK RESERVES. 7/63. BANKING AND MONETARY STATISTICS, 1973. Se- RESEARCH ON BANKING STRUCTURE AND PERlected series of banking and monetary statistics for FORMANCE, Staff Economic Study by Tynan 1973 only. 3/74 and 7/74. Smith. 4/66. CHANGES IN TIME AND SAVINGS DEPOSITS AT A REVISED INDEX OF MANUFACTURING CAPACITY, COMMERCIAL BANKS, OCTOBER 1973-JANUARY Staff Economic Study by Frank de Leeuw with 1974. 9/74. Frank E. Hopkins and Michael D. Sherman. 11/66. INFLATION AND STAGNATION IN MAJOR FOREIGN U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN INDUSTRIAL COUNTRIES. 10/74. 1960-67. 4/68. REVISION OF THE MONEY STOCK MEASURES AND EURO-DOLLARS: A CHANGING MARKET. 10/69. MEMBER BANK DEPOSITS. 12/74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 FEDERAL RESERVE BULLETIN • DECEMBER 1974 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Approximate Date or period to Weekly releases release day which data refer Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on by the Board Friday Week ended previous (H.2) Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday Wednesday, 2 weeks States (H.8) earlier Capital Market Developments (H.16) Monday Week ended previous Friday Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding by Industry (H.12)2 Wednesday Wednesday, 1 week earlier Condition Report of Large Commercial Banks in New York and Thursday Previous Wednesday Chicago (H.4.3) Condition Report of Large Commercial Banks and Domestic Subsid- Wednesday Wednesday, 1 week iaries (H.4.2)3 earlier Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday Week ended 3 Wednesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks (H.4.1) Wednesday Foreign Exchange Rates (H.10) Monday Week ended previous Friday Money Stock Measures (H.6) Thursday Week ended Wednesday of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednesday of previous week Selected Interest and Exchange Rates for Major Countries and the Thursday Week ended previous United States (H.13) Saturday U.S. Government Security Yields and Prices (H.15) Monday Week ended previous Saturday Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week Semimonthly and bimonthly releases Finance Rates and Other Terms on Selected Categories of Consumer 20th of month 2nd month previous Instalment Credit Extended by Finance Companies (J.3) Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last reof month lease 1 Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2Contains monthly H.12b release on second Wednesday of month. 3Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 87 Approximate Date or period to Monthly releases release day which data refer Assets and Liabilities of All Member Banks by Districts (G.7.1) 14th of month Last Wednesday of previous month Automobile Loans by Major Finance Companies (G.25) 7th working day 2nd month previous of month Automobile Instalment Credit Developments (G.26) 6th working day 2nd month previous of month Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Commercial and Industrial Term Loans Outstanding by Industry 2nd Wednesday Last Wednesday of (H.12b) Available only as attachment to weekly H.12 release of month previous month Consumer Credit (G.19) 3rd working 2nd month previous day of month Consumer Instalment Credit at Commercial Banks (G.18) 4th working 2nd month previous day of month Federal Reserve System Memorandum on Exchange Charges (K. 14) 5th of month Period since last release Finance Companies (G.20) 5th working 2nd month previous day of month Finance Rate and Other Terms on New and Used Car Instalment 30th of month Previous month Credit Contracts Purchased from Dealers by Major Auto Finance Companies (G .11) Foreign Exchange Rates (G.5) 1st of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15th of month Previous month (Similar data also available annually, see p. A-88 15th of month Previous month Interdistrict Settlement Fund (G.15) 15th of month 2nd month previous Interest Rates Charged on Selected Types of Bank Loans (G.10) Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposits (G.9) previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month State Member Banks of Federal Reserve System and Nonmember 1st week of Previous month Banks that Maintain Clearing Accounts with Federal Reserve month Banks (G.4) 1st week of End of previous year (Also annual) February Last week of Release date Summary of Equity Security Transactions (G.16) month 4th of month Previous month U.S. Government Security Yields and Prices (G.14) Quarterly releases Bank Rates on Short Term Business Loans (E.2) 18th of 1st 15 days of Febru- March, June, ary, May, August, September, November December Capacity Utilization in Manufacturing (E.5) 21st of Jan- Previous quarter uary, April, July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of Febru- Previous quarter Seasonally adjusted only (Z.la) ary, May, August, and Volume and Composition of Individuals' Saving November (Flow of funds series) (E.8) Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of March, 2nd quarter previous rations (E.6) July, September, December Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Approximate Date or period to Semiannual releases release day which data refer Assets and Liabilities of All Commercial Banks, by Class of Bank May and No- End of previous De- (E.3.4) vember cember and June List of OTC Margin Stocks (E.7) June 30, De- Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No- End of previous De- Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) Annual releases Bank Debits to Demand Deposit Accounts Except Interbank and U.S. March 25 Previous year Government Accounts (C.5) End of Month Demand Deposits Except Interbank and U.S. Govern- March 25 Previous year ment Accounts (C.5a) Industrial Production and Related Data November Previous year (Available upon request, after being announced) Member Bank Income (C.4) End of May Previous year 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, 79 Yields and prices, 30, 31 Branch banks: Employment, 52, 54 Assets, foreign branches of U.S. banks, 72 Liabilities of U.S. banks to their foreign branches and Farm mortgage loans, 44 foreign branches of U.S. banks, 24, 73 Federal agency obligations, 11, 12, 13 Brokerage balances, 71 Federal Finance: Business expenditures on new plant and equipment, 43 Receipts and outlays, 34, 35 Business indexes, 52 Treasury operating balance, 34 Business loans (See Commercial and industrial loans) Federal funds, 7, 18, 20, 24, 29 Federal home loan banks, 39, 40 Capacity utilization, 52 Federal Home Loan Mortgage Corporation, 39, 44, 45 Capital accounts: Federal Housing Administration, 44, 45, 46 Banks, by classes, 16, 19, 24 Federal intermediate credit banks, 39, 40 Federal Reserve Banks, 12 Federal land banks, 39, 40, 44 Central banks, 77, 78 Federal National Mortgage Assn., 39, 40, 44, 45, 46 Certificates of deposit, 24 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 15, 18, 27 U.S. Govt, securities held, 4, 12, 13, 36, 37 Weekly reporting banks, 20-24, 25 Federal Reserve credit, 4, 6, 12, 13 Commercial banks: Federal Reserve notes, 12 Assets and liabilities, 15, 16, 18, 19, 20 Federally sponsored credit agencies, 39, 40 Consumer loans held, by type, 47 Finance companies: Deposits at, for payment of personal loans, 26 Loans, 20, 48, 49 Loans sold outright, 27 Paper, 27, 29 Number, by classes, 16 Financial institutions, loans to, 18, 20 Real estate mortgages held, by type of holder and prop- Float, 4 erty, 44-46 Flow of funds, 58, 59 Commercial paper, 27, 29 Fpreign: Condition statements (See Assets and liabilities) Currency operations, 11, 12 Construction, 52, 53 Deposits in U.S. banks, 5, 12, 19, 23, 74 Consumer credit: Exchange rates, 77 Instalment credit, 47, 48, 49 Trade, 61 Noninstalment credit, 47 Foreigners: Consumer price indexes, 52, 55 Claims on, 68, 69, 70, 74, 75, 76 Consumption expenditures, 56, 57 Liabilities to, 24, 63, 64, 65, 66, 67, 74, 75, 76 Corporations: Profits, taxes, and dividends, 43 Sales, revenue, profits, and dividends Gold: of large manufacturing corporations, 79 Certificates, 12 Security issues, 41, 42 Earmarked, 74 Security yields and prices, 30, 31 Net purchases by United States, 62 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 78 Currency and coin, 5, 9, 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 90 FEDERAL RESERVE BULLETIN • DECEMBER 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 Sales, revenue, profits, and dividends of large Inventories, 56 manufacturing corporations, 79 Investment companies, issues and assets, 42 Saving: Investments (See also specific types of investments): Flow of funds series, 58, 59 Banks, by classes, 16, 18, 21, 22, 32 National income series, 56, 57 Commercial banks, 15 Savings and loan assns., 33, 37, 44, 46 Federal Reserve Banks, 12, 13 Savings deposits (See Time deposits) Life insurance companies, 33 Savings institutions, principal assets, 32, 33 Savings and loan assns., 33 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 39, 40 Labor force, 54 International transactions, 70, 71 Life insurance companies (See Insurance companies) New issues, 40, 41, 42 Loans (See also specific types of loans): Yields and prices, 30, 31 Banks, by classes, 16, 18, 20, 32 Special Drawing Rights, 4, 12, 60, 61 Commercial banks, 15, 16, 18, 20, 25, 27, 28 State and local govts.: Federal Reserve Banks, 4, 6, 8, 12, 13 Deposits, 19, 23 Insurance companies, 33, 46 Holdings of U.S. Govt, securities, 36, 37 Insured or guaranteed by U.S., 44, 45, 46 New security issues, 40, 41 Savings and loan assns., 33 Ownership of securities of, 18, 22, 32 Yields and prices of securities, 30, 31 State member banks, 17, 26 Manufacturers: Stock market credit, 31, 32 Capacity utilization, 52 Stocks (See also Securities): Production index, 51, 52 New issues, 41, 42 Margin requirements, 10 Yields and prices, 30, 31 Member banks: Assets and liabilities, by classes, 16, 18, 19 Tax receipts, Federal, 35 Borrowings at Federal Reserve Banks, 6, 12 Time deposits, 10, 15, 16, 19, 23 Number, by classes, 16 Treasury currency, Treasury cash, 4, 5 Reserve position, basic, 7 Treasury deposits, 5, 12, 34 Reserve requirements, 9 Treasury operating balance, 34 Reserves and related items, 4, 6, 15 Mining, production index, 51 Unemployment, 54 Mobile home shipments, 53 U.S. balance of payments, 60 Money market rates (See Interest rates) Money stock and related data, 14 U.S. Govt, balances: Mortgages (See Real estate loans and Residential mortgage Commercial bank holdings, 19, 23 loans) Member bank holdings, 15 Mutual funds (See Investment companies) Treasury deposits at Reserve Banks, 5, 12, 34 Mutual savings banks, 23, 32, 36, 37, 44, 46 U.S. Govt, securities: Bank holdings, 16, 18, 21, 32, 36, 37 Dealer transactions, positions, and financing, 38 National banks, 16, 26 Federal Reserve Bank holdings, 4, 12, 13, 36, 37 National defense expenditures, 35 Foreign and international holdings, 12, 68, 70, 74 National income, 56, 57 International transactions, 68, 70 Nonmember banks, 17, 18, 19, 26, 79 New issues, gross proceeds, 41 Open market transactions, 11 Open market transactions, 11 Outstanding, by type of security, 36, 37 Ownership, 36, 37 Yields and prices, 30, 31 Payrolls, manufacturing index, 52 Utilities, production index, 51 Personal income, 57 Prices: Consumer and wholesale commodity, 52, 55 Veterans Administration, 44, 45, 46 Security, 31 Prime rate, commercial banks, 28 Weekly reporting banks, 20-24 Production, 50, 51, 52 Profits, corporate, 43, 79 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 60 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A" pages) Other ("A" pages) Text Text etc. Index to etc. Index to Issue total Total tables Issue total Total tables January 1- 68 1-106 105--106 July 475-532 1- 92 91-92 February 69-174 1-108 107--108 August 533-612 1- 90 89-90 March 175-234 1-118 117--118 September .. 613-682 1- 94 93-94 April 235-324 1-100 99--100 October 683-744 1- 88 87-88 May 325-406 1- 96 95-- 96 November ... 745-804 1- 88 87-88 June 407-474 1-110 109--110 December ... 805-886 1-100 89-90 (References to "A" pages in this index are to such pages in the December issue.) Pages Pages Adams, Douglass, director, Baltimore Branch, appoint- Bank Holding Company Act: ment and death 156, 681 Orders issued under: Adams, Gene D., Class A director, Dallas, election .. 162 Adair Corporation 309 Air Force payroll deposits, electronic distribution 883 Alabama Bancorporation 318, 795 Alexander, John, Jr., director, Birmingham Branch, ap- Alabama Financial Group, Inc. (See also Southern pointment 157 Bancorporation, new corporate name) 319, 596, 790 Allison, Theodore E., Secretary of the Board, appoint- Allied Bancshares, Inc 151, 230 ment 609 Alton Bancorporation 795, 797 Annual Report, 1973, Board of Governors 471 Ameribanc, Inc 149 Articles: American Bancorp, Inc 523 Bank lending practices, 1973, changes 263 American Bancorporation, Inc., and Jacob Schmidt Capacity utilization for major materials, revised meas- Company 318 ures 246 American Bankcorp, Inc 149, 525 Construction, real estate, and mortgage markets 407 American Fletcher Corporation 150, 868 Consumer credit, pattern of growth 175 American Security and Trust Company and American Economy in 1973 1 Security Corporation, determination of violation of Financial developments, quarterly reports to Congress: Act 875 Q-A, 1973 69 Aplington Insurance, Inc 778 Q-l, Q-2, and Q-3, 1974 325, 533, 745 Arlco, Inc 401, 402 Industrial production 805 Associated Bank Corporation 737 Inflation and stagnation in major foreign industrial Atlantic Bancorporation 287, 319 countries 683 Aurora First National Company 362 Information system for banking agency reports Austin Bancshares Corporation 59 (ISBAR), summary description 543 BHCO, Inc 123 Labor market developments, recent 475 BancOhio Corporation 150 Member bank income, 1973 422 Bancshares of New Jersey 523 Monetary policy, numerical specifications of financial Bank of Virginia Company 150, 318, 512, 607 variables and their role 333 Bank America Corporation 60, 517 Money stock measures and member bank reserves and Bankers Trust New York Corporation 524, 608 deposits, revision of series 81, 817 Banks of Iowa, Inc 463 Open market operations in 1973 338 Bankshares of Indiana, Inc 872 Price developments, recent 613 Barnett Banks of Florida, Inc 149, 229,289, Time and savings deposits, surveys 252, 627 318, 465 Treasury and Federal Reserve foreign exchange opera- Bay state Corporation 318 tions, reports 191, 429, 636, 828 Bezanson Investments, Inc., and MorAmerica Finan- U.S. balance of payments, recent developments 235 cial Corporation 229 Assets and liabilities, foreign branches, member banks . 884 Boatmen's Bancshares, Inc 59, 524, 737 Bronson Agency, Inc 666 Balance of payments (See U.S. balance of payments) Budget Industries, Inc 793 Bank examination and regulatory structure and procedure, Business Administrative Needs of Kansas, Ltd. .. 606 statement 838 Byers State Bankshares, Inc 317, 318 Bank holding companies (For orders issued to individual C.I.T. Financial Corporation 229 companies under the Bank Holding Company Act, Capital National Corporation 47 see Bank Holding Company Act): Carolina BanCorp, Inc 385, 733 Interlocking relationships, changes in Regulations L and Cedar Holdings Limited, Bankers, London, England 37 Y 446, 470 Cegrove Corporation 229 Issuance and sale of short-term debt obligations by, Central Bancompany 465 miscellaneous interpretations 36 Central Bancshares of the South, Inc 39 Legislation, statement and laws 553, 802, 861 Central National Corporation 796, 797 Regulation Y: Central States Bancor, Inc 667 Amendments 223, 232, 284, 286, 446, 470, 504 Centran Bancshares Corporation 402, 456 Interpretations 223, 232, 681, 725, 726, 727 Charter Bancshares, Inc 677 Rules regarding delegation of authority relating to .. 286, Charter New York Corporation 59 321, 358, 588, 609 Chase Manhattan Corporation 142, 149, 150, 874 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Pages Orders issued under—Cont. Pages Chemical Financial Corporation 464 , 466 First National Corporation 320 Chemical New York Corporation 466 First National Financial Corporation 320, 798 Citizens and Southern Corporation 226 First National Holding Company 150 Citizens and Southern National Bank and Citizens and First National Holding Corp 381, 603, 738 Southern Holding Company 136, 379 First New Mexico Bankshares Corporation 795 City National Bank Corporation 149, 677 First Pennsylvania Corporation 150 Colonial Bancorp, Inc 310 First Plaza Company and Intermountain Bancorp, Colorado National Bankshares, Inc 318 Ipc 524 ComBanks Corporation 150 First Railroad and Banking Company of Georgia . 604 Commerce Bancshares, Inc. ..365, 402, 504, 608, 737 First Rantoul Corporation 773 Commercial Bank Investment Company 780 First Tennessee National Corporation ... 318, 607, 797 Commercial Bank Investment Company and Com- First Union, Incorporated 466, 738, 796 mercial Bancorporation of Colorado 677 First United Bancorporation, Inc 318, 607 Commercial Security Bancorporation 879 First Virginia Bankshares Corporation 313, 402, Commonwealth Bancshares, Inc 864 465, 738 Community Bancorporation 317 First West Virginia Bancorp, Inc 878 Community Financial Services, Inc 795 First Wisconsin Bankshares Corporation 149 Concordia Banc-Management, Inc 363 Florida National Banks of Florida 46 Conifer Group Inc 466, 607 Fort Worth National Corporation 318 County National Bancorporation 879 Fort Worth National Corporation and Shawmut As- Curry Ban Corporation 317 sociation, Inc 382 D. H. Baldwin Company 40, 298, 879 Fourth National Corporation 402 Depositors Corporation 312 Franklin New York Corporation 458 Dominion Bankshares Corporation 49, 319 Fredonia Bancshares, Inc 736, 738 Drummond Bancshares, Inc 728 FrostBank Corporation 60,151,293 Dunmire Agency, Inc 607 Fuji Bank, Limited, Tokyo, Japan 795 Eagle Capital Co 736 Galbank, Inc., and United States National Banc- Eastern Bank Corporation 772 shares, Inc 673 Ellis Banking Corporation 149, 523, 607 General Bancshares Corporation 607 Equitable Bancorporation 678 General Financial Systems, Inc 452 Exchange Bancorporation, Inc 229 Girard Company 738 Exchange National Corporation 148 Great Lakes Bancshares, Inc 403 F & M National Corporation 150 Great Lakes Financial Corporation 368 FBT Bancorp, Inc 466 Greater Jersey Bancorp 524 F.S.B., Inc 523 Hamilton Bancshares, Inc 320, 467 Farmers & Merchants Agency, Inc 880 Hardin Bancorp 774 Farmers State Corporation 787 Hastings City National Co 364 Federated Capital Corporation 465 Hawkeye Bancorporation 318 Fidelity American Bankshares, Inc 60, 738 High Country Investment Corporation 781 Fidelity Corporation of Pennsylvania 60, 466 High Plains Bank Corp 464 Fidelity Financial Corporation of Michigan 525 Hillsdale Development Corporation 465 Fidelity Union Bancorporation 447 IB&T Corporation 736 First Abilene Bankshares, Inc 149, 318 Independent Bank Corporation 880 First Alabama Bancshares, Inc 401, 523, 737 Independent Bankshares Corporation 608 First Algonquin Company 523 Indian Heads Banks, Inc 797 First Amtenn Corporation 60, 401 Industrial Bank of Japan, Limited, Tokyo, Japan . 795 First and Merchants Corporation 796 Industrial National Corporation 314, 677 First at Orlando Corporation ..149, 151, 230, 320, 366 Ingalls Insurance Agency, Inc 466 First Banc Group, Inc 403 Integrity Holding Company 149 First Banc Group of Ohio, Inc 465, 523 Intermountain Bancorp, Inc 523 First Bancgroup-Alabama, Inc 738 Intermountain Bankshares Company 677 First Bancorp, Inc 229 Irwin Union Corporation 138 First Bancorp of N.H., Inc 60, 149 Jacobus Company and Inland Financial First Bancshares of Florida, Inc 401, 732 Corporation 130, 879 First City Bancorporation of Texas, Inc 128,450, Korea Exchange Bank, Seoul, Korea 465 506, 508, 524, 607, 737 Landmark Banking Corporation of Florida, First Commerce Corporation 677, 797 Inc 229, 319, 467, 591, 678, 879 First Commercial Banks Inc 678 Levy Bancorp 797 First Community Bancorporation 739 Lindsborg Bancshares, Inc 147 First Dakota Bancorporation, Inc 590 Lloyds Bank Limited, London, England 139 First Financial Corporation 60, 129, 607, 738 Lloyds Bank Limited, London, England, and Lloyds First Financial Group of New Hampshire, Inc. ... 510 First Western Corporation, Wilmington, First Financial Services, Inc 401 Del 59, 125 First International Bancshares, Inc 43, 229, Locust Grove Bancshares, Incorporated 729 290, 465, 524, 738, 795 Long Bancorporation 737 First Kentucky National Corporation 523 McNee, Inc 465, 466 First Maryland Bancorp 735 Main Corp 738 First Midwest Bancorp, Inc 524 Manchester Corporation 510 First Moore Bancshares, Inc 795 Manchester Financial Corporation 369 First National Bancorporation, Inc 229 Manufacturers National Corporation 318 First National Charter Corporation 318, 796, 798, 880 Marcon Capital Corporation 677 First National City Corporation 50 Mark Twain Bancshares, Inc 401 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 60 A 93 Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Pages Orders issued under—Cont. Pages Mercantile Bancorporation, Inc 60, 294, Third National Corporation 318, 796 402, 607, 670, 677, 796, 879 Tokai Bank, Ltd., Nagoya, Japan 465 Mercantile Bankshares Corporation 60, 593 Tri-State Bancorporation, Inc 777 Michigan Financial Corporation 737 Trust Company of Georgia 796 Mid America Bancorporation, Inc 131 UB Financial Corp 791 Midlantic Banks, Inc 467 UST Corp 465 Mitsui Bank, Ltd., Tokyo, Japan 737 Union Commerce Corporation 467 MorAmerica Financial Corporation 796 Union Planters Corporation 797 Mountain Financial Services, Inc 677 United Banks of Colorado, Inc 149 Multibank Financial Corp 467 United Banks of Wisconsin, Inc 796 NB Corporation 678 United Carolina Bancshares Corporation 678, 879 NBC Co 402, 782 United First Florida Banks, Inc 150, 402, 455 NCNB Corporation 56, 459 United First Florida Banks, Inc., and Deland Devel- Namyaw Corporation, Inc 524 opment Corporation 374 National Bancshares Corporation of Texas 402 United Missouri Bancshares, Inc 224, 230 National Central Financial Corporation 524, 790 United Penn Corporation 150 National City Corporation 797 United Tennessee Bancshares Corporation 402 National Detroit Corporation 607, 796 United Virginia Bankshares Incorporated 675, 796 Neosho Bancshares, Inc 775 Valley Bancorporation, Appleton, Wise 738 New Jersey National Corporation 403 Valley Bancorporation, Rexburg, Idaho 737 Norbank, Inc 126 Valley of Virginia Bankshares, Inc 297, 320 Northbrook Bancorp, Inc 737 Victoria Bankshares, Inc 59 Northeast Bancorp, Inc 375 Virginia National Bancshares, Inc 737, 880 Northern Illinois Bancorp, Inc 228 Water Tower Financial Group, Inc 731 Northern States Bancorporation, Inc., and Twin West Michigan Financial Corporation 402 Gates Corporation 60, 151 Western Agency Inc 796 Northwest Ohio Bancshares, Inc 229 Wisdom Holding Corporation 878 Ohnward Corporation 524 Worcester Bancorp, Inc 150, 393 Old Kent Financial Corporation 133, 301 Wyoming Bancorporation 465 Orbanco, Inc 371 Zions Utah Bancorporation 525 Oregon Corporation 776 Bank Merger Act: Pacesetter Financial Corporation 737 Orders issued under: PanNational Group Inc 60 American Banks of Florida, Inc., Jacksonville, Fla. 61 Patagonia Corporation 678 Bank of Utah, Ogden, Utah 319 Peoples Banking Corporation 608, 738 Bankers Trust Company of Rochester, Rochester, Peoples State Bankshares, Inc 286 N.Y 403 Pieper Bancorp, Inc 788 Barclays Bank of New York, New York, N.Y. .. 403 Pittsburgh National Corporation 391, 678, 797 Brownsburg State Bank, Brownsburg, Ind 61 Plymouth Bancorporation, Inc 737 Cape Cod Bank and Trust Company, Barnstable, Popular Bancshares Corporation 151 Mass 397 Prairie Home, Inc 319 Central Bancorporation, Inc., Cincinnati, Ohio ... 61 Redline Insurance, Inc 465 Central Trust Company, Rochester, N.Y., Rochester, Republic New York Corporation 465, 466 N.Y 403 Rice Insurance Agency, Inc 149, 150 Chemung Canal Trust Company, Elmira, N.Y. ... 319 Rimco, Inc 607 Commerce Union Bank of Lawrence County, Royal Trust Company, Montreal, Quebec, Canada 58 Lawrenceburg, Tenn 797 Rush County Insurance Agency, Inc 523, 524 Commerce Union Bank of Sumner County, Gallatin, S&S Investment Company 317 Tenn 797 Second Bancorporation 878 Community Banks of Florida, Seminole, Fla 61 Security Bancorp, Inc 462, 466 Connecticut Bank and Trust Company, Hartford, Security New York State Corporation 372 Conn 398 Security Pacific Corporation 388 Euclid Street State Bank, San Antonio, Tex 525 Seven V Banco, Inc 737 First Virginia Bank of Roanoke Valley, Roanoke, Va. 678 Society Corporation 525 HBT Bank of Canton, Canton, Ohio 739 South Carolina National Corporation 514 New Victoria Bank and Trust Company, Victoria, Southeast Banking Corporation 60, 149, Tex 61 296, 318, 402, 465, 608, 737, 738, 784, 796 Oystermen's Bank and Trust Company, Sayville, Southern Bancorporation (See also Alabama Finan- N.Y 678 cial Group, Inc., former name) 525, 608, 678 PBT, Henrico County, Richmond, Va 678 Southern Bancorporation, Inc 316, 402 State Street Boston Financial Corporation, Boston, Southern National Corporation 319 Mass 61 Southland Bancorporation 669, 795 Twin Gates Corporation, Wilmington, Del., and Southwest Bancshares, Inc 149, 150 Northern States Bancorporation, Inc., Detroit, Southwest Florida Banks, Inc 60 Mich 61 Southwest Kansas Banc Shares, Inc 465 Union Bank and Trust Company, Ottumwa, Iowa 463 State Street Boston Financial Corporation .... 150, 515 Valley Bank of New York, Valley Stream, N.Y. 230 Sun Banks of Florida, Inc 786 Bank mergers, prohibition of action under delegated au- Swedlund Management Co 465, 466 thority on certain applications 322 Tampa State Bankshares, Inc 795, 797 Bankers' acceptances: Tennessee Valley Bancorp, Inc 60, 149, Federal Reserve holdings, increases, and end of System 402, 525, 738, 796, 865 guarantee on foreign official account purchases 609, 885 Texas Commerce Bancshares, Inc. 465, 525, 595, 739 Open market operations in, regulations and rules 284, 321 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Pages Banking agency reports, summary description of informa- Board of Governors—Continued tion system for (ISBAR) 543 Staff changes—Cont. Barley, Robert A., director, Los Angeles Branch, ap- Slocurn, Jerold E 63 pointment 164 Solomon, Frederic 527 Barlow, Thomas J., director, Houston Branch, appoint- Solomon, Robert 681 ment 163 Stockwell, Eleanor J 63 Barna, Peter E., Program Director for Bank Holding Thomson, Thomas D 63 Company Analysis, Office of Managing Director for Truman, Edwin M 802 Operations, appointment 681 Wallace, William H 742 Beall, Egbert R., director, Jacksonville Branch, appoint- Weifdel, Helmut F 63 ment 157 Winn, Donald J 321 Beck, Darwin, articles 81, 817 Wonnacott, Paul 404 Benson, Thomas L., director, Charlotte Branch, appoint- Wood, Charles W 63 ment 156 Zemel, Robert J 527 Bernard, J. Pierre, director, Baltimore Branch, appoint- Boltz, Paul W., article 263 ment 168 Bowman, Allan B., director, El Paso Branch, resignation 681 Board of Governors (See also Federal Reserve System): Branch banks: Annual Report, 1973 471 Federal Reserve: Bank holding company and bank merger applications Buildings, authority to increase amount spent for (See Bank Holding Company Act and Bank Merger construction 802, 851 Act) Directors (See Directors: Federal Reserve branch Bank lending policies, release of Federal Advisory banks) Council statement on 679 Vice Presidents in charge A-83 Committee on monetary measurements 167 Foreign: Delegation of authority (See Regulations and rules) Assets and liabilities of overseas branches of member Division of Supervision and Regulation, renamed Divi- banks 884 sion of Banking Supervision and Regulation and Reserve requirements on Euro-dollar transfer of certain functions 527, 665 borrowings 445, 800, 862 Electronic fund transfers 170, 800, 852, 883 Brimmer, Andrew F., Member of Board of Governors, Foreign credit restraint guidelines 15, 167 resignation 469 Gold, statement to State member banks on treatment Buchenroth, Felix, Jr., director, Denver Branch, appointby Reserve Banks 882 ment 161 Interpretations (See Interpretations) Bucher, Jeffrey M.: Members: Equal Credit Opportunity Act, statement 487 Brimmer, Andrew F., resignation 469 Usury ceilings, statement 560 Burns, Arthur F., redesignation as Chairman 167 Buckley, R. M., director, Houston Branch, resignation 168 Coldwell, Philip E., appointment 799 Buckley, Robert J., director, Pittsburgh Branch, appoint- Lists, 1913-74 220, 755 ment 681 Statements to Congress (See Statements to Congress) Budget, Federal, statements 209, 274, 653, 702 Wallich, Henry C., appointment 231 Burns, Arthur F.: Members and officers A-80 Budget, Federal, statements 209, 274, 653, 702 Office of Saver and Consumer Affairs, establishment, Chairman of Board of Governors, redesignation 167 and transfer of certain functions to it 527, 665 Conference on Inflation, remarks 699 Publications (See Publications in 1974) Economic Stabilization Act, statement on Regulations and rules (See Regulations and rules, Board desirability of extending 101 of Governors) Economy, statements on condition .. 209, 213, 561, 706 Staff changes: Floating rate notes such as proposed by Citicorp, corre- Allison, Theodore E 609 spondence 528 Barna, Peter E 681 Franklin National Bank, statement 740 Cardon, Robert L 321 Gold, statement on bill to postpone date when U.S. Chase, Samuel B., Jr 63 citizens can buy, sell, or trade 835 Denkler, John M 527 Inflation, statements 554, 702 Doyle, Daniel M 527 International economy and foreign exchange markets, Ettin, Edward C 63 statement 268 Feldberg, Chester B 609 Oil, statement on implications of high oil prices for Garwood, Griffith L 63, 742 international finance 830 Gramley, Lyle E 527 Burroughs, Raymond C., Class A director, St. Louis, Hampton, Charles L 231 election 159 Hart, Janet 0 527 Butler, Broadus N., director, New Orleans Branch, resig- Heller, Pauline B 63 nation 404 Katz, Samuel 1 609 Kichline, James L 63, 742 Campbell, William M., director, Memphis Branch, ap- Kudlinski, James R 470 pointment 160 Leavitt, Brenton C 527 Capacity utilization for major materials, article on revised McNeill, Charles R 404 measures . 246 Mead, Thomas E 742 Cardon, Robert L., Assistant to the Board, retirement 321 Meetze, Henry W 231 Chase, Samuel B., Jr., Adviser to the Board, appointment 63 Nicoll, John 167 Check clearing and collection: O'Connell, Thomas J 527 Collection, amendment of Regulation J 665 Oehmann, Andrew F 404, 527 Electronic fund transfers 170, 800, 852, 883 Plotkin, Robert S 681 Special routing numbers, issuance to thrift institutions 170 Raiken, Allen L 802 Citicorp issue of floating rate notes, statements and corre- Rippey, John S 321 spondence 490, 527, 552 Siegman, Charles J 802 Clark, Andrew L., Class B director, Richmond, election 155 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 60 A 95 Pages Pages Coldwell, Philip E., Member of Board of Governors, Dobbin, Tilton H., director, Baltimore Branch, resignaappointment 799 nation 168 Commercial banks: Doyle, Daniel M., Managing Director for Operations, Foreign branches of member banks, assets and liabilities 884 appointment 527 Franklin National Bank, statement 740 Drum, David G., director, Helena Branch, appointment 160 Information system for banking agency reports (ISBAR), summary description 543 Earnings and expenses: Insured, statement on usury ceilings 560 Federal Reserve Banks, 1973 64 Lending practices, 1973, article on changes 263 Member banks, 1973, article 422 Loans sold outright, revision of statistical table data 741 Economic Stabilization Act, statement on extension ... 101 Time and savings deposits: Economy: Federal insurance on, increase, and inclusion of gov- In 1973, article 1 ernmental unit deposits, legislation and amendment Statements on condition 209, 213, 561, 706 of Regulations D and Q 801, 849, 862, 883 Edmonson, Nathan, article 246 Investment certificates, establishment and rate, Electronic fund transfers 170, 800, 852, 883 amendment of Regulation Q 883 Ely, J. Wallace, director, Buffalo Branch, appointment 153 Surveys 252, 627 Energy supplies and uses, revised charts for staff eco- Commercial paper, marginal reserve requirement against, nomic study 64 amendment of Regulation D 680, 723, 800, 861 Ettin, Edward C., Associate Adviser, Division of Research Construction, article 407 and Statistics, appointment 63 Consumer credit: Euro-dollar borrowings 445, 800, 862 Data, proposed revisions 742 Equal Credit Opportunity Act, statement 487 Legislation 800, 849 Farver, Paul V., Class B director, Chicago, election 158 Pattern of growth, article 175 Federal Advisory Council: Truth in lending, amendment of Regulation Z 123 Bank lending policies, statement 679 Coombs, Charles A., reports 191,429,636,828 Members and officers A-82 Cooper, Richard A., director, Jacksonville Branch, ap- Federal agency securities, change in System operations 609 pointment . 404 Federal funds: Credit (See also Loans): Borrowing, survey 885 Consumer (See Consumer credit) Nonbank participation in market for, interpretation 36 Federal Reserve, extensions by, increases in rates and Sale by bank holding companies, amendment of Reguamendment of Regulation A 404, 723, 741, 771, 885 lation Y 504 Stocks (See Stock market credit) Federal Open Market Committee: Cyert, Richard M., Chairman, Pittsburgh Branch, des- Bankers' acceptances: ignation 404 Federal Reserve holdings, increases, and end of Sys- Cyrnak, Anthony W., article 422 tem guarantee on acceptances bought for foreign official account 609, 885 Davis, J. Luther, director, El Paso Branch, appointment 681 Regulations and rules relating to 284, 321 Delay, Jay J., Class A director, Chicago, election .... 158 Federal agency securities, change in operations 609 Denkler, John M., Deputy Managing Director for Opera- Foreign exhange operations, reports.. 191, 429, 636, 828 tions, appointment 527 Members and officers A-82 de Veer, William K., director, Jacksonville Branch, Minutes, 1968, availability 231 appointment 157 Open market operations in 1973, article 338 Deposits: Policy actions: Interest rates (See Interest on deposits) Numerical specifications of financial variables, article Reserve requirements (See Reserve requirements) on System's operating guide between meetings 333 Revision of series 81, 470, 681, 817 Record....26, 108, 115, 275, 351, 431, 493, 580, Time and savings: 656, 712, 764, 842 Federal insurance on, increase, and inclusion of gov- Swap arrangements 170, 322 ernmental unit deposits, legislation and amendment Federal Reserve Act: of Regulation Q 801, 849, 862, 883 Section 10, Federal Reserve branch bank buildings, Investment certificates, establishment and rate, authority to increase amount for construction ..802, 851 amendment of Regulation Q 883 Section 10(b), advances to member banks of Federal Surveys 252, 627 Reserve on security of residential mortgages, amend- Dinsdale, Roy G., director, Omaha Branch, appoint- ment permitting 771 ment 162 Section 14(b), authority of Treasury to borrow directly Directors: from Federal Reserve, extension 802, 851 Federal Reserve Banks: Sections 19 and 19(a), authority to set interest rate Chairmen and Federal Reserve Agents 152, 470, A-83 ceilings on bank holding company securities 861 Class A and Class B, elections 168 Section 25(a), orders under 519, 521 Class C, appointment 470 Federal Reserve and Treasury: Death 470 Electronic distribution of Air Force payroll deposits 883 Deputy Chairmen 152, A-83 Foreign exchange operations, reports 191, 429 List 152 636, 828 Federal Reserve branch banks: Study of U.S. Govt, securities market, Part 3 64 Appointments 168, 404, 681 Federal Reserve Banks: Chairmen and Deputy Chairmen 152, 404, A-83 Branches (See Branch banks: Federal Reserve) Death 681 Chairmen and Deputy Chairmen 152, 470, A-83 List 152 Check clearing and collection (See Check clearing Resignations 168, 404, 681 and collection) Discount rates (See Interest rates) Delegation by Board of certain authority to, amend- Dividends: ment and revision of rules 286, 321, 358, 588, 609 Federal Reserve Banks 64 Directors (See Directors: Federal Reserve Banks) Member banks, 1973, article 422 Discount rates (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Pages Pages Federal Reserve Banks—Continued Hart, Janet O., Deputy Director, Office of Saver and Earnings and expenses 64 Consumer Affairs, appointment 527 Extensions of credit 404, 723, 741, 771, 885 Hays, Thomas E., Jr., director, Little Rock Branch, ap- Letter and Board statement to State member banks pointment 159 concerning gold 882 Healy, Robert E., director, Memphis Branch, appointment 404 New York, publication of weekly statistical reports Heller, Pauline B., Assistant General Counsel, retirement 63 glossary 742 Henson, Claude, Class A director, Richmond, election 155 Open market operations, rules relating to 284, 321 Holland, Robert C.: Presidents and First Vice Presidents, list A-83 Bank examination and regulatory structure and proce- Federal Reserve BULLETIN, revised rates 526 dure,, statement 838 Federal Reserve notes, interest paid to Treasury 64 Financial system of United States, statement on propos- Federal Reserve System (See also Board of Governors): als to change structure 551 Admissions of State banks to membership 67, 171 Holmes, Alan R., article 338 232, 322, 405, 471, 530, 681, 742, 802, 885 Hornbeck, Robert T., Class B director, Atlanta, election 156 Authority of Treasury Department to borrow directly from, extension 802, 851 Income and expenses {See Earnings and expenses) Branch bank buildings, authority to increase amount Industrial production: spent for construction 802 Article 805 Check clearing and collection {See Check clearing and Board releases 67, 173, 233, 323, 406, 473, 531 collection) 611, 682, 743, 803, 886 Publications (See Publications in 1974) Inflation {See also Economy): Swap arrangements 170, 322 Conference on, remarks of Chairman Burns 699 Feldberg, Chester B., Secretary of the Board, resignation 609 Major foreign industrial countries, article 683 Fillebrown, T. Scott, Jr., director, Nashville Branch, Statements 554, 702 appointment 157 Insured commercial banks, Federal deposit insurance, in- Finance bills, marginal reserve requirement against, crease, and inclusion of governmental unit deposits, amendment of Regulation D 680, 723, 800, 861 legislation and amendment of Regulations D and Q.. 801 Financial developments, quarterly reports to 849, 862, 883 Congress 69, 325, 533, 745 Interest on deposits {See also Interest rates): Foreign banking and financing corporations, orders under Negotiable orders of withdrawal (NOW's), amendment Section 25(a) of Federal Reserve Act 519, 521 of Regulation Q 35,771 Foreign banking in United States, statement and proposed Time and savings: legislation 97, 881 Governmental unit deposits, legislation and amend- Foreign branches of member banks (See Branch banks: ment of Regulation Q to include 849, 862, 883 Foreign) Investment certificates, establishment and rate, Foreign credit restraint guidelines, amendments and ter- amendment of Regulation Q 883 mination 15, 167 Legislation extending flexible features of Regulation Foreign currency arrangements 170, 322 Q 801, 851 Foreign exchange: Interest rates {See also Interest on deposits): Markets, statements 268, 575 Bank holding company securities, authority to set rate Operations, reports of Treasury and Federal Re- ceilings on 861 serve 191, 429, 636, 828 Federal Reserve Banks, increases, and establishment of Foreign industrial countries, major, article on inflation and special rate on emergency credit to a member bank stagnation 683 in exceptional circumstances 404, 723, 741 Foreign official accounts, end of System guarantee on 771, 885 acceptances purchased for 885 Floating rate notes, statements and Foreign owned U.S. banks, availability of data series 741 correspondence 490, 527, 552 Franklin National Bank, statement 740 Usury ceilings, statement 560 Fry, Edward R., article 817 Interlocking relationships, changes in Regulations L and Y 446, 470 Garwood, Griffith L., Adviser, Legal Division, and As- Interpretations, Board of Governors: sistant Secretary of the Board, appointments 63, 742 Bank holding companies, nonbanking activities 36, 223 Gold: 232, 470, 681, 725, 726, 727 Bill to postpone date when U.S. citizens can buy, sell, Drafts or bills of exchange, acceptance by member or trade, statement 835 banks, pending general review 284 Letter from Reserve Banks and Board statement 882 Due bills, uncollateralized, that are outstanding after Goodwyn, Ulysses V., Class B director, Atlanta, elec- 3 business days 724 tion 156 Federal funds market, nonbank participation 36 Gramley, Lyle E., Director, Division of Research and Insurance premium funding programs, purpose credit 224 Statistics, appointment 527 Interlocking bank relationships under Clayton Grymes, Douglas, director and Chairman, Pittsburgh Act 445, 470 Branch, resignation 404, 681 Published, Supplements Nos. 20 and 22 65, 885 Guscott, Kenneth I., Class C director, Boston, appoint- ISBAR, summary description of information system for ment 152 banking agency reports 543 Hall, Donald J., Class B director, Kansas City, election 161 Jones, James H., director, New Orleans Branch, Hamm, Philip, Class A director, Kansas City, election 161 appointment 157 Hampton, Charles L., Director, Division of Data Process- Jones, Warren B., Class B director, Minneapolis, ing, appointment 231 election 160 Handler, Ruth, director, Los Angeles Branch, resignation 168 Harris, Lawrence, director, Birmingham Branch, appoint- Katz, Samuel I., Adviser, Division of International Fiment and resignation 157, 404 nance, retirement 609 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 60 A 97 Pages Pages Kelley, Will H., director, Little Rock Branch, McFarland, James P., Class C director and Deputy Chairresignation 168 man, Minneapolis, appointment 160 Kichline, James L., Assistant Adviser and Adviser, Divi- Mcintosh, Lawrence, director, Jacksonville Branch, ression of Research and Statistics, appointments 63, 742 ignation 404 Killian, I. E., director, Baltimore Branch, appointment 156 McNeill, Charles R., Assistant to the General Counsel, Kirby, Robert E., Class C director, Cleveland, Deputy appointment 404 Chairman, appointment 154 Maples, John, Jr., director, Birmingham Branch, appoint- Kirtland, Clifford M., Jr., Class C director and Deputy ment 157 Chairman, Atlanta, appointment 156 Margin requirements (Regulations G, T, and U): Koenig, Frederick G., Jr., director, Birmingham Branch, Loan value of stocks, maximum, decrease 33, 63 resignation 168 Over-the-counter margin stocks, amendment of regula- Kudlinski, James R., Associate Director, Division of tions, and revised stock list 501, 530, 610 Federal Reserve Bank Operations, appointment 470 Same-day credit restriction for stocks, suspension 802, 863 Masland, William S., Class B director, Philadelphia, election 168 Labor market developments, article 475 Mathews, Irving A., Class C director, Dallas, appointment 162 Lambing, Malcolm E., Jr., director, Pittsburgh Branch, Mead, Thomas E., Assistant Director, Division of Federal appointment 155 Reserve Bank Operations, appointment 742 Lawson, Fred R., director, Nashville Branch, appointment 157 Meetze, Henry W., Associate Director, Division of Data Lazarus, Charles Y., Class B director, Cleveland, election 154 Processing, appointment 231 Leavitt, Brenton C., Director, Division of Banking Member banks (See also National banks): Supervision and Regulation, appointment 527 Acceptances of drafts or bills of exchange, revocation Legislation: of Regulation C 284, 321 Bank holding companies, authority of Federal Reserve Branches (See Branch banks: Foreign) to issue cease and desist orders against certain prac- Credit, extensions by Federal Reserve Banks, increases tices, extension, and to set interest rate ceilings on in rates and amendment of Regulation A 404, their securities 802, 861 723, 741, 771, 885 Congressional Budget Act of 1974, statements ..653, 702 Federal insurance on time and savings deposits at, Economic Stabilization Act, statement on extending 101 increase, and inclusion of governmental unit deposits, Electronic fund transfers 800, 852 legislation and amendment of Regulations D and Q 801 Emergency Home Purchase Assistance Act of 1974 771 849, 862, 883 Equal Credit Opportunity Act, statement and Income and expenses, 1973, article 422 law 487, 800, 849 Interlocking relationships under Clayton Act, amend- Fair credit billing 800, 849 ment and interpretation of Regulation L 445, 470 Federal deposit insurance, increase, and inclusion of Reserve requirements (See Reserve requirements) governmental unit deposits 801, 849, 862, 883 Reserves and deposits, revision of series 81, 470 Federal Reserve branch bank buildings, authority to 681 817 increase amount spent for construction 802, 851 State member banks (See State member banks) Financial Institutions Act, statement referring to Miller, Thomas L., Class A director, Philadelphia, elecproposed law 551 tion 153 Financial regulatory agencies, Mitchell, George W.: independence 852 Floating rate notes, statement; correspondence ..490, 527 Foreign banking in United States, statement and Foreign banking in United States, statement 97 proposed legislation to establish national policy 97, 881 Monetary measurements committee, formation 167 Gold, statement on bill to postpone date when U.S. Monetary policy: citizens can buy, sell, or trade gold 835 Letter to Congress from Professor Friedman, Interest on deposits, extension of flexible features of announcement 231 Regulation Q 801,851 Numerical specifications of financial variables and role Money orders and traveler's checks, abandoned 860 in, article 333 Reserve requirements, draft legislation for uniform re- Money stock and related measures, revision of quirements 167 series 81, 470, 681, 817 Treasury Department, authority to borrow directly from Mortgages: Federal Reserve, extension 802, 851 Emergency Home Purchase Assistance Act of 1974 and Truth in Lending Act, amendment of Regulation Z and amendment of Regulation A 771 amendments to law 800, 856 Guarantee insurance, underwriting by bank holding Lewis, Floyd W., director, New Orleans Branch, apcompanies, interpretation 681, 727 pointment 404 Loans in flood hazard areas, amendment of Regulation Loans (See also Credit): H 171, 222, 680, 725 Bank lending policies, statement of Federal Advisory Markets, article 407 Council 679 Note purchased from mortgage banking subsidiary of Bank lending practices, 1973, article on changes ... 263 bank holding company, interpretation 726 Commercial banks, revision of statistical data on loans Mutual savings banks: sold outright 741 Federal deposit insurance, increase, and inclusion of Federal funds (See Federal funds) governmental unit deposits, legislation and amend- Mortgages (See Mortgages) ment of Regulations D and Q 801, 849 Stocks (See Stock market credit) 862, 883 Low, Ben R., director, San Antonio Branch, appointment 163 Special routing numbers, issuance to 170 McAdams, Herbert H., II, director, Little Rock Branch, National banks: appointment 159 Reserve requirements on Euro-dollar borrowings 445 McCoy, Charles W., director, New Orleans Branch, ap- 800, 862 pointment 157 Usury ceilings, statement 560 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Pages Pages Negotiable orders of withdrawal (NOW's) 35, 167 Regulations and rules, Board of Governors: 170, 771 A, Extensions of Credit by Federal Reserve Banks: Nicoll, John, Deputy General Counsel, appointment 167 Residential mortgages, advances on security of, Nonmember banks: amendment 771 Money stock and related measures, revisions of Special rate on emergency credit to a member bank series 81, 470, 681, 817 in exceptional circumstances, amendment ..723, 741 Reserve requirements, draft legislation for uniform re- B, Open Market Purchases of Bills of Exchange, Trade quirements, and change in marginal reserves held Acceptances, Bankers' Acceptances: voluntarily 167, 680, 723, 800, 861 Revocation 284, 321 C, Acceptance by Member Banks of Drafts or Bills of Exchange: O'Connell, Thomas J., Counsel to the Chairman, Revocation and pending general review of interpretaappointment 527 tions 284, 321 Oehmann, Andrew F., Assistant to the General Counsel D, Reserves of Member Banks: and Acting General Counsel, appointments 404, 527 Due bills, uncollateralized, that are outstanding after Oil (See also Economy): 3 business days, amendment and interpretation 724 Statements on problems created by and implications of Euro-dollar borrowings, technical amendment 862 enormous increase in price 567, 575, 757, 830 Governmental unit deposits, amendment to Oliver, John T., Jr., Class A director, Atlanta, election 156 Olsson, Donald E., director, Helena Branch, appointment 160 include 862, 883 Open market operations (See Federal Open Market Com- Marginal requirement against certain time deposits, mittee) amendments 33, 680, 723, 799-800, 861 Restructuring, amendments 799-800, 861 Orton, Stewart, Class B director, Dallas, election 162 Delegation of authority, amendment and revision of Over-the-counter stocks (See Stock market credit) rules 286, 321, 358, 588, 609, 665 F, Securities of State Member Banks: Par list, termination, and issuance of new list of banks Standby letters of credit on financial statements, discharging exchange fees on checks 665 closure, amendment 664 Payrolls, electronic distribution of Air Force payroll de- Federal Open Market Committee, regulation relating to posits, joint program 883 open market operations of Reserve Banks, realign- Pearson, Plato, Jr., director, Charlotte Branch, appoint- ment and modernization 284, 321 ment 156 G, Securities Credit by Persons Other Than Banks, Peck, Clair L., Class B director, San Francisco, election 163 Brokers, or Dealers: Peirce, Frederic M., Class C director and Chairman, St. Insurance premium funding programs, purpose credit, Louis, death 470 interpretation 224 Plotkin, Robert S., Associate Program Director for Bank Loan value of stocks, maximum, decrease in margin, Holding Company Analysis, Office of Managing amendment 33, 63 Director for Operations, appointment 681 Over-the-counter margin stocks, amendment 501 Policy actions, Federal Open Market Committee .... 26, 108 Same-day restriction for stocks, suspension, amend- 115, 275, 351, 431, 493, 580, 656, 712, 764, 842 ment 802, 863 Powell, E. Angus, Class C director, Richmond, appoint- H, Membership of State Banking Institutions in the ment 155 Federal Reserve System: Price developments, recent article 613 Affiliates, submission of reports, amendment 34 Production (See Industrial production) Loans in identified flood hazard areas, restrictions, Publications in 1974: amendments 171, 222, 680, 725 Board of Governors: Standby letters of credit and certain acceptances, Annual Report, 1973 471 issuance, amendment 664 Chart books, monthly and historical, increase in J, Collection of Checks and Other Items by Federal rates 609 Reserve Banks: Consumer Credit Review Report 742 Par List, termination and issuance of new list of banks Federal Reserve BULLETIN, increase in rates 526 charging exchange fees on checks, amendment 665 Federal Reserve System—Purposes and Functions, L, Interlocking Bank Relationships Under the Clayton revised edition 740 Act: Joint Treasury-Federal Reserve Study of the U.S. Banks in low income areas, amendment and interpre- Government Securities Market: Staff Studies— tation 445, 470 Part 3 64 M, Foreign Activities of National Banks: List of available publications A-84 Reserve requirements on Euro-dollar borrowings, Over-the-counter (OTC) margin stock list, revised 610 amendments 445, 862 Published interpretations, Supplements Nos. 20 Organization, amendment of rules 361 and 22 65,885 Q, Interest on Deposits: Federal Reserve Bank of New York: Federal funds market, nonbank participation, inter- Weekly statistical reports glossary 742 pretation 36 Governmental unit deposits, amendment to include Raiken, Allen L., adviser, Legal Division, appointment 802 and increase in rate ceilings 862, 883 Ranson, Daniel G., director, Buffalo Branch, appointment 153 Investment certificates, establishment and rate, Real estate: amendment 883 Article 407 Legislation extending flexible features 801, 851 Leasing of both real and personal property, amendment Negotiable orders of withdrawal (NOW's), amendof Regulation Y 284 ments 35, 771 Loans in flood hazard areas, amendment of Regulation T, Credit by Brokers and Dealers: H .171,222,680,725 Investment contract securities, amendment and post- Record of policy actions of Federal Open Market Com- ponement 36, 63, 470 mittee 26, 108, 115, 275, 351, 431, 493 Loan value of stocks, maximum, decrease in margin, 580, 656, 712, 764, 842 amendment 33, 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX TO VOLUME 60 A 99 Pages Pages Regulations, Board of Governors—Continued Sherman, Carl B., director, Houston Branch, appointment 168 T, Credit by Brokers and Dealers—Cont. Siegman, Charles J., Assistant Adviser, Division of Inter- Over-the-counter margin stocks, amendment 501 national Finance, appointment 802 Same-day restriction for stocks, suspension, amend- Slocum, Jerold E., Director, Division of Data Processing, ment 802, 863 resignation 63 U, Credit by Banks for the Purpose of Purchasing or Sneath, William S., Class B director, New York, Carrying Margin Stocks: election 168 Insurance premium funding programs, purpose credit, Solomon, Frederic, Director, Office of Saver and Coninterpretation 224 sumer Affairs, appointment 527 Loan value of stocks, maximum, decrease in margin, Solomon, Robert, Adviser to Board and international amendment 33, 63 economist of Federal Open Market Committee, re- Over-the-counter margin stocks, amendment 501 sumption of duties 681 Same-day restriction for stocks, suspension, amend- Southworth, Francis N., Class A director, Boston, election 152 ment 802, 863 Staff economic studies: Y, Bank Holding Companies: Summaries 79, 189, 420 Nonbanking activities: "U.S. Energy Supplies and Uses," revised charts for 64 Acquisition of assets requiring prior Board ap- State member banks: proval, interpretation 725 Admissions to membership in Federal Reserve Sys- Bank stock acquired in fiduciary capacity, amend- tem 65, 171, 232, 322, 405, 471, 530 ment 286 681, 742, 802, 885 Leasing of real and personal property, amend- Affiliates, submission of reports, amendment of Regument 284 lation H 34 Management counsulting advice, amend- Examination, joint experimental project in Indiana 405 ments 446, 470 Letter from Reserve Banks and Board statement con- Management consulting services to nonaffiliated cerning gold 882 banks, amendment and interpretation 223, 232 Loans in identified flood hazard areas, restrictions, Sale of Federal funds, amendment 504 amendment of Regulation H 171, 222, 680, 725 Underwriting of real estate mortgage guaranty in- Mergers (See Bank Merger Act) surance, interpretation 681, 727 Securities, amendment of Regulations F and H 664 Z, Truth in Lending: Statements to Congress: Amendment 123 Bank examination and regulatory structure and proce- Reserve requirements (See also Reserves): dure 838 Member banks: Budget, Federal 209, 274, 653, 702 Due bills, uncollateralized, that are outstanding after Economic Stabilization Act, desirability of extending 101 3 business days, amendment of Regulation D and Economy, condition 209, 213, 561, 706 interpretation 724 Equal Credit Opportunity Act 487 Euro-dollar borrowings 445, 800, 862 Financial developments, quarterly reports to Congress: Governmental unit deposits, legislation and amend- Q-4, 1973 69 ment of Regulation D to include 849, 862, 883 Q-l, Q-2, and Q-3, 1974 325, 533, 745 Marginal requirement against certain time deposits, Financial system of United States, proposals to change amendment of Regulation D 33, 680 structure 551 723, 799-800, 861 F16ating rate notes, statements and corres- Restructuring, amendment of Regulation D 799, 861 pondence 490,527,552 Uniform, draft legislation 167 Foreign banking in United States 97 Reserves, member banks: Gold, bill to postpone date when U.S. citizens can buy, Revision of series 81, 470, 681, 817 sell, or trade 835 Rice, Lacy I., Jr., director, Baltimore Branch, appoint- Inflation 554, 702 ment 681 International economic problems and domestic reper- Rippe, Joseph F., director, Cincinnati Branch, appoint- cussions 575 ment 154 International economy and foreign exchange markets, Rippey, John S., Assistant to the Board, appointment 321 recent developments 268 Rodriguez, Armando M., director, Los Angeles Branch, Monetary policy, announcement concerning letter to appointment 404 Congress prompted by Chairman Burns' letter 231 Oil, problems created by and implications of enormous Samford, Frank P., Jr., director, Birmingham Branch, increase in price 567, 575, 757, 830 appointment 157 Usury ceilings, proposals relating to national banks and Savings and loan associations: Federally insured banks and savings and loan associ- Federal deposit insurance, increase, legislation and ations 560 amendment of Regulations D and Q 801, 849 Steward, Loran L., director, Portland Branch, appoint- 862, 883 ment 164 Special routing numbers, issuance to 170 Stock market credit: Usury ceilings, statement 560 Delegation of authority, amendment of rules regarding 665 Scanlon, Martha S., articles 252, 627 Insurance premium funding programs, purpose credit, Schnuck, Edward J., Class C director, St. Louis, appoint- interpretation 224 ment, and designation as Chairman and Federal Reserve Investment contract securities, amendment of Regula- Agent 470 tion T and postponement 36, 63, 470 Securities (See also U.S. Govt, securities): Loan value of stocks, maximum, decrease in margin, Floating rate notes, statements and amendment of Regulations G, T, and U 33, 63 correspondence 490, 527, 552 Over-the-counter margin stocks, amendment of regula- State member banks, amendment of Regulations F and tions and rules, and revised stock list 501 530 H 664 610, 666 Stocks (See Stock market credit) Same-day credit restriction for stocks, suspension, Sedransk, Joseph, article 81 amendment of Regulations G, T, and U 802, 863 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN • DECEMBER 1974 Stockwell, Eleanor J., Associate Adviser, Division of U.S. balance of payments: Research and Statistics, appointment 63 Article on recent developments 235 Strotz, Robert H., Class C director, Chicago, appointment 158 Foreign credit restraint guidelines 15, 167 Stubblefield, P. K., director, Houston Branch, appoint- Statement on international economy and foreign exment 163 change markets 268, 575 Surdam, Robert M., director, Detroit Branch, appointment 158 U.S. banks owned by foreign banks, availability of data Swap arrangements 170, 322 series 741 Swearer, Howard B., Class C director, Minneapolis, U.S. Govt, securities market, Part 3 of study 64 appointment 160 Varner, Durward B., director, Omaha Branch, appoint- Tables (See list at bottom of p. A-3 for tables published ment, and designation as Chairman 162 periodically; see guide at top of p. A-91 for index to Vaughan, Joseph R., director, Los Angeles Branch, aptables published monthly) pointment 168 Tankersley, G. Jackson, director, Pittsburgh Branch, ap- Voluntary foreign credit restraint guidelines 15, 167 pointment 155 Tatter, Jordan B., director, Detroit Branch, appointment 158 Thomson, Thomas D., Assistant Adviser, Division of Wallace, William H., Assistant Director, Division of Federal Reserve Bank Operations, appointment 742 Research and Statistics, appointment 63 Wallich, Henry C.: Thrift institutions, issuance of special routing numbers International economic problems and their domestic to 170 repercussions, statement 575 Treasury and Federal Reserve: Member of Board of Governors, appointment 231 Authority of Treasury to borrow directly from Federal Oil, statements on problems created by enormous in- Reserve, extension 802, 851 crease in price 567, 575, 757 Electronic distribution of Air Force payroll deposits, Weaver, Mary F., article 817 joint program 883 Wendel, Helmut F., Assistant Adviser, Division of Re- Foreign exchange operations, reports . 191, 429, 636, 828 search and Statistics, appointment 63 Study of U.S. Govt, securities market, Part 3 64 Wilson, Margaret Scarbrough, director, San Antonio Truman, Edwin M., Assistant Adviser, Division of Branch, appointment 163 International Finance, appointment 802 Winn, Donald J., Special Assistant to Board, appointment Truth in lending: 321 Legislation 800, 856 Regulation Z, amendment 123 Wonnacott, Paul, Associate Director, Division of Interna- Turnipseed, Clarence L., Director, Birmingham Branch, tional Finance, appointment 404 appointment 681 Wood, Charles W., Assistant Director, Division of Per- Tuten, John C., Class A director, Philadelphia, election 168 sonnel, appointment 63 Undlin, Charles T., Class A director, Minneapolis, elec- Zemel, Robert J., Assistant Director, Division of Data tion 160 Processing, appointment 527 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^1) Detroit^ OmafuC Kansas Cittj^ Oktakoma Cittf Dallas Jiouston Mew (Means tanAntvnio* Miami 'Drawn by KM Qcdvin, Cart * (p THE FEDERAL RESERVE SYSTEM q) & 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