Federal Reserve Bulletin, 1975-04

FEDERAL RESERVE BULLETIN . IN T ER N A T IO N A L T R A M O N ETA R Y PO L IC Y IN A C H A N G IN G FIN A N C IA L E N V IR O I O PEN M A R K E T O PER A TIO N S IN 1974 T H E STR U C TU R E O F M A R G IN C R E D IT C H A N G ES IN B A N K L EN D IN G PR A C T IC E S, 1974 N EW STA TISTIC A L SER IES O N L O A N C O M M IT M E N T S Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BULLETIN NUMBER 4 □ VOLUME 61 □ APRIL 1975 C O N TEN TS 187 U.S. International Transactions in A 1 Financial and Business Statistics 1974 A 1 Contents 197 Monetary Policy in a Changing A 2 U.S. Statistics Financial Environment: Open Market A 58 International Statistics Operations in 1974 A 86 Board of Governors and Staff 209 The Structure of Margin Credit A 88 Open Market Committee and Staff; 221 Changes in Bank Lending Practices, Federal Advisory Council 1974 A 89 Federal Reserve Banks and Branches 226 Loan Commitments at Selected Large Commercial Banks: New Statistical A 90 Federal Reserve Board Publications Series A 92 Index to Statistical Tables 230 Record of Policy Actions of the Federal Open Market Committee A 94 Map of Federal Reserve System 245 Law Department Inside Back Cover: Guide to Tabular Presentation 260 Announcements Statistical Releases: Reference 262 Industrial Production E D ITO R IA L C O M M ITTEE J. Charles Partee Lyle E. Gramley Robert Solomon Ralph C. Bryant Joseph R. Coyne 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

U.S. International Transactions in 1 9 7 4 This article was prepared in the Balance of Foreign Industrial Production Payments Section of the Division of Interna­ Ratio scale, 1970=100 tional Finance. In 1974 the focus of international economic policy in the United States and abroad centered on the problems of adjusting to sharply higher oil prices and of coping with the worldwide cyclical contraction in economic activity in an environment of extreme price pressures. In retrospect, it is clear that financial markets in the United States and abroad proved remark­ ably elastic in absorbing and recycling the sur­ plus funds of oil-exporting countries. On the other hand, the quadrupling of oil prices by members of the Organization of Petroleum Ex­ porting Countries (OPEC) at the end of 1973 had both an inflationary effect on prices and a depressing impact on economic activity in most industrial countries. The increase in oil 1971________1972_______ 1973_______ 1974 75 prices—which in effect amounted to an excise tax collected by foreign governments—not only *Quarterly averages of monthly production indexes for Canada, Japan, United Kingdom, Italy, Germany, Netherlands, and added to price pressures but also removed pur­ France weighted by shares in U.S. nonagricultural exports. Data are from national sources. chasing power from consumption channels, at a time when the rate of growth in output was already slowing in some countries and had be­ Exchange-rate developments during 1974 come negative in others. As 1974 progressed, have been reviewed in detail in the Bulletin the recession proved to be more serious and in September 1974 and March 1975. In general, widespread in most countries than had been three major phases can be distinguished: (1) the expected earlier. As of April 1975 recovery was depreciation—from rather high levels in pre­ still some way off even though economic poli­ vious months—of the U.S. dollar between late cies had in general shifted toward expansion and January 1974 and mid-May, when heavy out­ considerable progress had been made in mod­ flows of U.S. capital took place and asymmetri­ erating price rises. cal intervention policies abroad increased the The most significant developments in U.S. market supply of dollars; (2) a period of international transactions during 1974 were (1) strengthening from May to early September a huge increase in the net outflow of private 1974, related in part to the reversal in capital capital; (2) placement of OPEC funds in the flows as U.S. interest rates rose relative to United States; (3) an $18 billion jump in the foreign rates and in part to market uneasiness cost of imported oil; and (4) further strengthen­ arising from the difficulties of some European ing in the trade position apart from petroleum banks; and (3) weakening in the dollar rate after imports. September, as U.S. interest rates dropped faster Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin □ April 1975 than those abroad. In December 1974 one The Swiss franc and the German mark appre­ measure of the trade-weighted average value of ciated sharply in 1974, not only against the U.S. the U.S. dollar against the currencies of other dollar but also against other important curren­ Group of Ten countries plus Switzerland cies. These appreciations reflected continued showed a depreciation of about 2 per cent com­ large German trade surpluses and the movement pared with December 1973. of capital into Swiss financial assets and in both TABLE 1 U.S. International Transactions, 1972-74 In billions of dollars; quarterly data at seasonally adjusted annual rates. 1974 Item 1972 1973 1974 Ql Q2 Q3 Q4 Merchandise trade balance .......................... -7.0 .5 -5.9 -.7 -6.7 —9.9 -6.2 Exports ........................................................................ 48.8 70.3 97.1 88.8 95.7 98.9 104.9 Imports ........................................................................ -55.8 -69.8 -103.0 -89.5 -102.4 -108.8 -111.1 Investment income, net ........................................... 4.5 5.3 9.6 12.3 7.5 9.1 9.7 Receipts ...................................................................... 10.4 14.0 25.9 24.5 25.5 28.1 25.6 Payments .................................................................... -5.9 -8.7 -16.3 -12.2 -18.0 -19.0 -15.9 Military transactions, net ......................................... -3.6 -2.3 -2.4 -2.3 -3.2 -2.1 -2.0 Sales .......................................................................... 1.2 2.4 2.7 2.3 2.1 3.0 3.2 Direct defense expenditures ............................. -4.8 -4.6 -5.1 -4.7 -5.3 -5.1 -5.2 Other services, net .................................................... .1 .8 1.5 1.5 1.1 1.7 1.7 Balance on goods and services .................... -6.0 4.3 2.9 10.9 -1.3 -1.1 3.1 Remittances and pensions, net ............................. -1.6 -1.9 -1.8 -1.6 -1.9 -1.8 -1.9 U.S. Govt, grants, net1 ........................................... -2.2 -1.9 -2.3 -2.2 -2.4 -2.2 -2.3 Balance on current account’ ....................... -9.8 .4 -1.2 7.1 -5.6 -5.2 -1.0 U.S. Govt, capital, net1 ........................................... -1.3 -1.5 -1.8 -2.2 -.5 -.7 -3.8 Private capital, net ........................................ 1.9 -1.9 -10.3 -5.9 -17.8 1.3 -18.7 {Increase in U.S. assets (—)] Reported by banks, net ....................................... 1.4 -1.4 -3.1 -1.8 -17.6 8.0 -1.0 -3.5 -5.9 -18.8 -21.5 -29.9 -8.0 -16.0 Liabilities .............................................................. 4.9 4.5 15.7 19.6 12.3 16.0 14.9 Securities, net .......................................................... 3.9 3.2 -.7 .2 .4 -.6 -3.0 U.S. purchases of foreign securities ........ -.7 -.8 -2.0 -2.6 -1.3 -1.2 -2.7 Foreign purchases of U.S. securities — 4.5 4.1 1.2 2.7 1.7 .6 -.3 Direct investment, net ......................................... -3.1 -2.3 -4.5 2.6 .6 -8.5 -12.6 U.S. investments abroad ............................... -3.5 -4.9 -6.8 -2.5 -6.1 -8.2 -10.4 Foreign investments in U.S............................ .4 2.5 2.3 5.1 6.7 -.4 -2.2 Other corporate flows, net ................................. -.2 -1.4 -1.9 -6.8 -1.3 2.4 -1.9 Assets ...................................................................... -1.1 -2.5 -3.0 -8.3 -2.5 1.0 -2.1 Liabilities .............................................................. .8 1.2 1.0 1.4 1.2 1.4 .1 Liabilities to foreign official agencies, net — 10.3 5.1 9.5 -3.3 19.5 5.3 16.6 Of which—OPEC .................................................. .6 .4 9.7 4.0 9.6 15.6 9.6 Other .................................................. 9.7 4.7 -.2 -7.2 10.0 -10.4 7.0 U.S. official reserve assets ..................................... (2) .2 -1.4 -.8 -1.4 -4.0 .5 Allocations of SDR’s ................................................ .7 Errors and omissions ................................................ -1.8 -2.3 5.2 5.2 5.9 3.4 6.4 Memo: Official settlements balance ................... 10.4 -5.3 -8.1 4.2 -18.1 -1.3 -17.1 ! 1974 data on certain U.S. international transactions differ from published Department of Commerce statistics because of adjustments made to eliminate effects of special transactions with India, Israel, and South Vietnam. Most affected by these changes were U.S. Government grants, U.S. Government capital, and the balance on current account. 2 Negligible. Note.—Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1974 189 Effective Exchange Rates of Major Currencies itated large net additions to U.S. private assets May 1970=100 abroad. At the same time, there was an equally large inflow of foreign-held official assets as the OPEC countries placed more than $10 billion of their surplus oil revenues here. Although German mark classified as official transactions, these place­ ments of OPEC funds resembled private capital flows in many respects, since they were not made in support of particular exchange rates but rather as part of a program for investing surplus revenues. In addition, the large shift in errors and omissions from a net outflow of $2.3 billion in 1973 to a net inflow of $5.2 billion last year may have included a substantial unidentified inflow of capital from abroad. Transactions in securities shifted from a net inflow of $3.2 billion in 1973 to a net outflow of $0.7 billion last year. The largest change occurred in foreign purchases of U.S. corporate Each rate is a quarterly average of daily spot exchange rates for other G-10 countries plus Switzerland, weighted by country stocks, which dropped to less than $0.5 billion share in world trade of these countries. The G-10 countries are the United States, Germany, Japan, Canada, the Nether­ from $2.8 billion in 1973 as the rate of inflation lands, France, Belgium, Italy, Sweden, and the United King­ accelerated in the United States, economic ac­ dom. Other effective exchange-rate calculations with a different tivity fell off, and stock prices declined. Fol­ number of countries and/or different weighting schemes give somewhat different results, but the trends in most cases are lowing sizable purchases in the first quarter, similar. foreign net acquisitions contracted abruptly in cases only limited official intervention in the the next two quarters, and by the end of the market to resist upward pressures on exchange year foreigners had become net sellers of U.S. rates. The value of the Japanese yen vis-a-vis corporate stocks. Foreign purchases of U.S. other major currencies declined in 1974 because corporate bonds fell because of the near-disap­ of external payments difficulties and very rapid pearance of Euro-bond issues by U.S. corpora­ price increases in that country. Britain’s serious tions, which had used such issues to finance economic problems notwithstanding, large a portion of capital expenditures of affiliated placements of OPEC surplus revenues in ster­ firms abroad during the period of controls on ling-denominated assets and substantial official direct investment outflows. In 1973, $1.2 billion and semi-official borrowing by the United had been raised through such placements in the Kingdom from the Euro-currency market kept Euro-bond market. movements in the international value of the British pound within relatively narrow limits. Comparative Interest Rates Ratio scale, per cent per annum C A P IT A L F L O W S The identified net outflow of private capital from the United States increased to $10.3 billion in 1974, exceeding the net outflow in the previous year by more than $8 billion. The removal of mandatory and voluntary controls on capital outflows in January 1974— which had been in effect for a number of years—along with an 60-89 days 1973 1974 15 easing of foreign barriers against inflows, facil­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin □ April 1975 The increase in U.S. purchases of foreign were some temporary inflows from affiliates to securities also contributed to the shift to a net parent companies representing sales receipts outflow in securities transactions. The removal from abroad in advance of tax payments to in January 1974 of the Interest Equalization Tax governments of oil-producing countries. (IET) did not bring a surge of foreign issues, The net inflow of foreign direct investment however, as relatively high interest rates in the to the United States amounted to $2.3 billion United States generally discouraged borrowing. last year compared with $2.5 billion in 1973; Most of the expansion represented unusually in both years there were inflows of about $1 heavy placements of bonds by Canadian public billion associated with the petroleum affiliate authorities and provincial governments—which takeovers referred to above. Other foreign direct had been exempt from the provisions of the IET. investment in the United States was $1.5 billion Many of the Canadian issues were related to in 1974, about the same as in 1973 but very the financing of large-scale energy projects, high compared with earlier years. which may have been easier to place in the U.S. The magnitude of international capital flows capital market because of the much larger ab­ through U.S. banks in 1974 was unprecedented. sorptive capacity of this market as compared Bank-reported claims on foreigners increased by with the Canadian market. With the decline in $18.8 billion, facilitated by the removal of the U.S. interest rates in the final months of 1974 voluntary foreign credit restraint guidelines in and early 1975, Japanese and European issues January. At the same time bank-reported liabil­ picked up as well, and there were substantial ities to foreigners rose by $20.9 billion, of placements of long-term securities by interna­ which $15.4 billion was to private and $5.5 tional organizations. billion to official accounts. Most of the private The net outflow on direct investment rose to inflow represented funds obtained from the $4.5 billion in 1974, nearly double the rate in Euro-dollar market, while the direct placement the previous year. Outflows of U.S. capital to of OPEC surplus revenues with U.S. banks manufacturing and other nonpetroleum affiliates accounted for much of the official inflow. The were especially bouyant following the removal quarterly pattern and the geographical distri­ of controls early in the year. Net outflows for bution of these flows are detailed in Table 2. these industries increased from $3.5 billion in The high rate of lending activity in the first 1973 to $6.5 billion, with part of the rise repre­ half of the year was prompted in large part by senting the shifting of claims by U.S. petroleum the financing needs of the oil-importing coun­ companies from petroleum affiliates to foreign tries—outstanding credits to Japan alone rose financing affiliates. In 1974 direct investment $4.4 billion in this period—enabling these outflows from the United States accounted for countries to finance oil-induced deficits without a considerably larger portion of plant and reducing reserves drastically. More than $14 equipment expenditures abroad by nonpetro­ billion of the increase in foreign lending was leum affiliates than the 23 per cent average share reported by U.S.-owned commercial banks and recorded in 1971-73. Capital outlays by such approximately $4 billion by U.S. agencies and firms for plant and equipment increased 20 per branches of foreign banks. cent last year, a somewhat higher rate of ex­ The sensitivity of bank flows to changes in pansion measured in current dollars than in interest rate differentials is difficult to isolate. 1973. The rapid increase in the first half of 1974 in Recorded direct investment in petroleum U.S. interest rates relative to those prevailing affiliates and branches abroad showed a net in Europe contributed to a cutback in U.S. bank outflow of only $0.3 billion, down from $1.4 lending in the third quarter, with actual net billion in 1973. The decline did not occur be­ repayments of loans in August and September. cause of curtailed capital spending by U.S. oil In the fourth quarter the relatively faster drop companies but rather because of inflows asso­ in interest rates in this country also played a ciated with the partial takeover of an affiliate role in the pick-up in bank lending and in the by a Middle East government. In addition, there reduction in borrowing. However, other factors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1974 191 TABLE 2 Changes in U.S. claims on, and liabilities to, foreigners reported by U.S. banks In millions of dollars 1974 Out­ standing, Item 1973 1974 Dec. 31, Ql Q2 Q3 Q4 1974 Claims, total, increase (-) ............................. -5,951 -18,838 -5,273 -7,507 -1,661 -4,397 45,528 Of which— Japan ................................................................ -2,144 -6,107 -1,462 -2,976 -1,550 — 119 12,756 Other Asia .................................................... -808 -1,884 457 -734 -303 -390 5,041 Latin America ................................................. -1,486 -6,537 -1,455 -1,918 -1,109 -2,055 14,523 Bahamas ...................................................... -357 -2,070 -442 -571 -598 -459 2,965 Brazil ............................................................ -330 -693 -281 -448 -60 96 2,255 Mexico ..................................................... -241 -830 -68 -417 -27 -318 2,663 Western Europe ............................................. -1,083 -2,529 -1,451 -1,561 1,346 -863 7,399 United Kingdom ....................................... -460 -1,127 -651 -427 191 — 240 2,734 All other ............................................................ -430 -1,781 -448 -318 -45 -970 5,809 Liabilities,1 total, increase (+) ................. 8,794 20,907 4,365 5,613 6,993 3,936 59,396 Of which— Western Europe ............................................. 6,234 12,277 2,754 4,099 2,330 3,094 28,550 United Kingdom ....................................... 1,084 3,451 2,194 1,132 294 169 6,646 Switzerland ................................................. 746 6,342 398 2,557 1,747 1,640 8,420 OPEC .................................................................. 540 3,950 624 1,110 1,846 370 6,450 Bahamas ............................................................ 286 670 1,183 -522 -266 275 1,549 Japan .................................................................. -1,820 888 -251 -279 1,000 418 4,812 All other ............................................................ 3,554 3,122 55 1,205 2,083 -221 18,035 Of which—to private foreigners ........... 4,671 15,356 4,477 4,215 3,746 2 918 41,253 to official foreigners................... 4,123 5,551 -112 1,398 3,247 1,018 18,143 'Excluding U.S. Government obligations. were also at work in the second half of the year, national organizations and moved to diversify especially the reduced need of Japan for external their investment portfolios. Changes in interest financing, the adoption of more cautious lending rate differentials may have also contributed to policies following several bank failures, and the surge in OPEC placements in the United greater direct lending by OPEC members to States in the third quarter and to the slackening oil-importing countries. in the fourth. U.S. liabilities to foreign official agencies Although reserves of non-OPEC countries in rose by $9.5 billion in 1974 compared with $5.1 the United States showed practically no change billion in the preceding year. In the aggregate, for 1974 as a whole, considerable quarterly inflows from the OPEC countries more than shifts took place during the year. In the first accounted for the total. Identifiable OPEC and third quarters some countries utilized dollar placements in the U.S. capital market totaled reserves held in this country to limit currency $10.5 billion (including $0.8 billion in private depreciations. This drawdown was nearly off­ OPEC accounts), less than one-fifth of their set, however, by net additions to such dollar 1974 surplus revenues. Of this amount, more assets by the non-OPEC countries in the second than $6 billion was invested in U.S. Govern­ and fourth quarters. The $1.4 billion rise in U.S. ment obligations and close to $4 billion in reserve assets resulted mainly from an increase certificates of deposit and other money market in the U.S. gold tranche position in the Interna­ instruments. The inflow of OPEC funds was tional Monetary Fund as other countries drew particularly heavy in the third quarter as a result dollars from the Fund. of widespread concern about the soundness of a number of European banks. The rate of inflow of oil revenues into the United States slackened M E R C H A N D IS E T R A D E in the fourth quarter, as OPEC countries made Following a sizable surplus in the second half more direct loans to oil importers and to inter­ of 1973, the trade account shifted into a bal­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin □ April 1975 U.S. Trade to the very rapid rise in U.S. import prices, Ratio scale, billions of dollars especially for petroleum, relative to the prices of exports. If recorded trade values are adjusted to eliminate price increases, the U.S. trade position is seen to have been stronger than in 1973. Broad cyclical movements of economic ac­ tivity during 1974 were essentially similar in the United States and most other major coun­ tries. However, the leveling off in U.S. indus­ 40 trial output and aggregate economic activity began somewhat earlier than abroad. This dif­ Arithmetic scale, billions of dollars ference in timing together with the cumulative impact of the 1971-73 exchange-rate 10 changes—particularly on export volumes—con­ + tributed to the further strengthening of the U.S. 0 trade position in the first half of 1974. The relative movements during 1974 in U.S. and 10 foreign prices appear to have had no significant effect on the U.S. trade position. For the year, wholesale prices for manufactures in this Dept, of Commerce data at seasonally adjusted annual rates, balance of payments basis. country rose at about the same rate as the Latest data, January-February 1975 average. trade-weighted average of wholesale prices in seven major industrial countries, after adjusting anced position in the first quarter of 1974 and the latter to dollar equivalents. into deficits—averaging more than $7 billion at seasonally adjusted annual rates—in succeeding Wholesale Price Indexes of Manufactured Goods quarters. For the year as a whole, the trade deficit amounted to $5.9 billion in contrast to a small surplus in 1973. All of this shift in value Foreign’ terms from the preceding year was attributable in dollar terms U.S. Foreign Trade Relative to Goods Output Per cent Exports per cent RELATIVE PRICE * Quarterly averages of monthly price indexes for Canada, Japan, U.K., Germany, France, Netherlands, and Italy Based on Dept, of Commerce data in constant (1967) dollars, weighted by shares in group’s exports of manufactured goods. seasonally adjusted. Data are from national sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1974 193 Exports Composition of U.S. Nonagricultural Exports Billions of dollars U.S. exports rose to $97.1 billion in 1974. This CURRENT CONSTANT was an increase of 38 per cent from the preced­ ing year, with sharply higher prices accounting for most of the expansion in value. Although 60 the growth rate in the volume of exports decel­ Automotive erated from 23 per cent in 1973 to 8 per cent products last year, the advance still exceeded the expan­ Consumer II 12% f goods 40 sion in world exports. Greater shipments of 12% 10% Capital 9% nonagricultural products more than accounted goods 42% for the export growth last year. 40% 20 The 1974 export performance was based on 41% a number of factors. First, basic material short­ In s d u u p s p tr li i e a s l 38% 39% 36% ages abroad—aggravated by stock building in excess of actual production needs—did not ease 1973 1974 1973 1974 significantly until midyear, while U.S. exports Dept, of Commerce data. of long lead-time items continued on orders that “Constant” is in terms of 1967 dollars. had been placed earlier. Controls on domestic prices in the United States may have provided stepped up, the U.S. share in these imports did an additional incentive to channel a larger share not change significantly as 1974 progressed. of output into exports until the dismantling of Shipments of capital equipment and industrial these controls was completed in April. Second, materials expanded sharply last year. Reflecting exports were strong to the non-oil, developing increases in business investment outlays abroad, countries that had built up large financial re­ exports of most types of machinery rose through serves during the preceding commodity boom. much of 1974 in volume terms and leveled off Related to these two factors was the cumula­ only in the final quarter. Even though foreign tive impact on U.S. competitiveness in interna­ output was tapering off, continued shortages tional markets of the 1971-73 currency realign­ abroad stimulated demand, particularly for ex­ ments. The appreciation against the dollar of ports of chemicals, steel, and other metals. Coal the currencies of some principal competitors has shipments, mainly of the metallurgical variety, tilted the ratio of U.S. to foreign prices signifi­ were on a strong uptrend throughout the year cantly in favor of the United States since 1971. as steel production abroad was maintained at Partial evidence of improved U.S. competi­ high levels. tiveness may be found in the further increase High prices and supply limitations arising last year, to about 20 per cent, in the U.S. share from reduced U.S. production of certain com­ of world exports of manufactures measured in modities depressed the volume of agricultural volume terms. This share had been declining exports by 9 per cent in 1974 compared with in the second half of the 1960’s, reached a low the unusually high levels recorded in the pre­ point of about 18 per cent in 1971-72, and ceding year. Nevertheless, these exports re­ began a slight uptrend in 1973. The lagged mained well above the 1972 total. The impact reaction of exports to exchange-rate changes on foreign demand of high U.S. prices was was expected. reflected in the drawdown of already low food Another factor was the sharp rise in exports and feedgrain stocks abroad as foreign buyers to the OPEC countries, which reached an annual canceled orders in expectation of better crops rate of more than $9 billion in the fourth quarter, and a consequent drop in price. The ratio of nearly double the level in the comparable world stocks to consumption indicates the extent quarter of 1973. Because OPEC purchases from of the inventory decumulation: from the most major industrial countries were also 1965-73 average of 24 per cent for wheat, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin □ April 1975 U.S. Exports of Agricultural Commodities portant—element was the increase in exportable Ratio scale, billions of dollars supplies abroad following the economic slow­ down and continued domestic shortages in cer­ 8 tain product lines. 6 The most spectacular import development of the year was the rise in the cost of imported 4 oil from $8.1 billion in 1973 to $26.0 billion. From an average of $3.33 per barrel in 1973, 3 the unit value of imported petroleum and petro­ leum products jumped to $11.63 per barrel in 2 the second quarter of 1974 and fluctuated around that level for the rest of the year. The quantity of imported oil fell in the first quarter because of the embargo by Arab countries but recovered in the second; the first-quarter shortfall was not Dept, of Commerce data, seasonally adjusted. made up, however, as the initial impact of high Latest data, January-February 1975 average. prices, conservation programs, and slackening industrial activity curtailed demand. In the sec­ ratio fell to about 16 per cent last year; for ond half of 1974, imports averaged 6.8 million feedgrains it dropped from 14 per cent to less barrels per day, only slightly less than in the than 9 per cent. comparable period a year earlier. The quantity of petroleum imports was maintained at these levels despite the drop in consumption because Imports stocks were built up while domestic production In value terms, U.S. imports increased by 47 continued to fall; in the fourth quarter crude oil per cent to $103.0 billion in 1974. The quarterly production from U.S. wells was running 5 per pattern showed a gradually decelerating growth cent below the level a year earlier. rate in import values as price rises moderated Following an increase in the first quarter of and small gains in volume gave way to slight 1974, the volume of nonfuel imports declined declines in the third and fourth quarters. slightly in each of the remaining quarters. Con­ Although the volume of U.S. imports de­ sumer goods, which had been in the forefront clined slightly for the year as a whole, the drop of the import expansion in prior years, were off was probably less than what might have been by more than 10 per cent in volume in 1974, expected on the basis of the rate of economic a decline that exceeded the drop in U.S. per­ activity. For example, while U.S. output of sonal consumption expenditures. Auto deliv­ goods fell by more than 8 per cent from the eries from the Canadian facilities of American fourth quarter of 1973 to the fourth quarter of producers fell in 1974, but not so steeply as 1974, real imports showed practically no U.S. output because a larger share of Canadian change. The effect of the 1971-73 currency production is concentrated in compact and sub­ shifts on U.S. demand for imports also appeared compact models, which accounted for a larger less noticeable in 1974 than in the preceding share of total auto sales in this country. Imports year, even though the currency changes seem of cars from overseas suppliers rose strongly in to have been passed through in the form of the first half, but by midyear lagging sales had higher import prices. A partial explanation for forced a cutback in imports. the fact that the volume of imports remained The volume of capital goods imports in­ essentially flat during most of 1974 is that creased strongly in the first half but leveled off foreign products, particularly finished manufac­ in the third quarter before declining in the fourth tures, have become an important part of domes­ as U.S. investment outlays had been reduced tic supply and as such are less marginal than earlier in real terms. Imports of most industrial in the past. Another—and possibly more im­ supplies either were flat or declined along with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1974 195 falling output in this country. Steel imports rising share of gross income. In the final quarter, picked up sharply, however, in the second half earnings were reduced as local tax rates were of the year as foreign mills once again turned raised and output was cut in an effort to maintain to the U.S. market after the long boom abroad prices in the face of declining world demand. had subsided. In addition, shortages in this However, this decline was more than offset by country continued through the summer and higher income receipts from other foreign some stockpiling may have taken place in an­ operations of U.S. petroleum companies. Re­ ticipation of a coal strike which, if prolonged, ceipts from manufacturing and other nonpetro­ would have forced a curtailment in domestic leum direct investment abroad increased $0.7 steel production. billion in the year. Because receipts on U.S. investments abroad other than direct investment increased faster U.S. Imports of Nonfuel Industrial Supplies than payments on foreign-held assets in the Ratio scale, billions of dollars United States, the usual net outflow on this account was reduced slightly to $2.8 billion in 1974. Most of the expansion in both receipts and payments reflected the massive capital transactions by U.S. banks as they expanded their foreign assets while providing investment outlets for petroleum producers. The explana­ tion for the faster rise in receipts is that interest rates applicable to bank lending increased faster between 1973 and 1974 than rates paid on foreign-held assets in the United States. More­ over, close to one-half of U.S. liabilities are in the form of Government obligations, which carry a substantially lower interest rate than Dept, of Commerce data, seasonally adjusted. those applicable to bank claims on foreigners. Latest data, January-February 1975 average. At $2.4 billion, net payments associated with travel and transportation transactions were the lowest in 3 years. Most of the decline from the S E R V IC E T R A N S A C T IO N S preceding year was on the travel side as the Although the international service transactions volume of American tourist expenditures over­ of the United States—including investment in­ seas was reduced under the combined impact come and military transactions—have shown a of growing recession at home and rapidly esca­ net positive balance for many years, both the lating prices abroad. The net outflow on military size and the increase in 1974 net receipts were transactions recorded no significant change. unusual. From $3.8 billion in the preceding year, net receipts expanded to $9.1 billion. Of this increase, $3.3 billion was traceable to net R E C E N T D E V E L O P M E N T S investment income arising from the foreign A N D O U T L O O K operations of U.S. petroleum companies. Oil company earnings jumped sharply in the early A period of weakness for the U.S. dollar in months of the year as high inventory profits were exchange markets, which had begun in Sep­ recorded following the increase to $11.65 per tember 1974, continued through the early part barrel in the posted price of light Arabian crude of March 1975. One reason for this development oil. When prices stabilized at the new levels, was the further relative easing of U.S. interest foreign earnings of U.S. petroleum companies rates, which helped to induce net capital out­ leveled off as participation payments to govern­ flows through banks and through purchases of ments of oil-producing countries absorbed a foreign bonds offered in the U.S. market. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin □ April 1975 proportion of OPEC earnings placed in dollar- Given the continuing weakness in economic dominated assets was also smaller in the fourth activity in the United States and abroad, further quarter and early this year than it had been declines are expected in the volume of both U.S. during most of 1974. The counterpart to the exports and imports. The slack in the utilization dollar’s weakness was the strong appreciation of productive capacity in nearly all industrial of the German mark—on the basis of continued countries suggests that price competition in in­ large trade surpluses—and of several other Eu­ ternational markets will be especially keen in ropean currencies. the period ahead. Although U.S. exports to the Since early March, however, the international OPEC countries are expected to rise strongly value of the U.S. dollar has been on an uptrend. again, the limited absorptive capacity of these The narrowing of interest rate differentials economies will probably slow the rate of ex­ seems to have been the principal factor, as pansion. In addition, the decline in farm com­ interest rates abroad continued to fall while U.S. modity prices, which has been under way since rates firmed. In mid-April 1975 the trade- late 1974, will probably be reflected in a drop weighted average value of the dollar was about in U.S. agricultural export values. 4 per cent lower than in March 1973, the month The huge capital flows through U.S. banks following the second devaluation of the dollar. experienced last year are unlikely to be repeated The trade balance shifted from a sizable defi­ in 1975, although banks will continue to play cit in the fourth quarter to a small surplus in a significant role in the intermediation of OPEC the first 2 months of 1975 as imports declined revenues. Participation by banks is expected to and exports continued to rise. The drop in diminish because there will probably be more imports was widespread among nonfuel prod­ direct placement of oil earnings with importing ucts while the export gain centered in shipments countries and a larger proportion of OPEC funds of farm commodities. may move into longer-term securities. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

197 Monetary Policy in a Changing Financial Environment O pen M arket O perations in 1974 This article is adapted from a report submitted acted to stimulate a resumption of monetary to the Federal Open Market Committee by Alan expansion and thereby to provide for the re­ R. Holmes, Manager of the System Open Mar­ building of liquidity. ket Account and Executive Vice President of the Monetary expansion remained quite rapid Federal Reserve Bank of New York. over much of the first half of 1974, but later became persistently sluggish. The narrowly de­ Federal Reserve policy in 1974 acted to temper fined money stock (Mx)—defined as private de­ the conflicting forces of inflation and weakness mand deposits plus currency in circulation—in­ in real economic activity. The Federal Open creased by 4V2 per cent over the year, well Market Committee (FOMC) sought to ensure below the 9 per cent and 6 per cent rates moderate expansion of the monetary aggregates experienced in 1972 and 1973, respectively.1 to bridge the lengthy and difficult transition to Record-high interest rates on market instruments sustainable economic growth. Policy became cut into time and savings deposit flows over a restrictive early in the year as the Committee good part of the year. M2—Mx plus commercial responded to evidence that inflationary pressures bank time and savings deposits other than were again gaining momentum and monetary large-denomination certificates of deposit aggregates were growing too rapidly. (CD’s)—grew at a IV2 per cent rate, down from Although interest rates climbed sharply, fi­ 9 per cent the year before. Growth in the credit nancial institutions continued meeting excessive proxy—total deposits plus nondeposit liabilities demands for money and credit and their de­ at member banks—at just over 10 per cent was pendence on short-term market borrowing in­ a shade slower than in recent years due to a creased. A secular decline in liquidity in all very pronounced deceleration as the year drew sectors of the economy became even more pro­ to a close. Bank credit—total loans and invest­ nounced. Problems of the Franklin National ments at all commercial banks—showed a simi­ Bank and difficulties encountered by several lar pattern and actually contracted in the final borrowers in refinancing debt surfaced in the quarter. spring and deepened concerns about cumulating The monetary aggregates remained a central liquidity strains on the financial system. Expec­ focus of policy formulation and implementation tations that debt could become an increasing over 1974 as they have for the past 5 years. drain on the health of the economy as inflation The Committee continued to frame its longerpersisted intensified a cutback in spending and run objectives for the aggregates with reference investment plans. to changing assessments of the economic and Monetary growth decelerated over the sum­ financial situation. mer, and the financial markets began to recover In 1974, policymakers were confronted with as demand pressures abated. Financial institu­ the need to allow for important changes in bank tions started to exercise restraint on their own, and corporate behavior. The financial system and restoring liquidity, rather than expanding borrowing, became the focus of attention. As 1 Growth rates for all measures in the introduction inflationary pressures moderated and signs of use data that incorporate revisions made in January generalized economic weakness appeared, the 1975. The data used in describing operations during the Committee in the closing months of the year year are those available at the time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin □ April 1975 had been adapting to a prolonged period of 1970 and 1973, gave banks the ability to meet inflation and to the intense competition for funds growing credit demands. Banks were able to that it generated. But these adjustments reached enhance their competitive position by extending a point in 1974 where they strained the capabil­ loan commitments and lines of credit, thereby ity of the financial mechanism to function. The accommodating enlarged business demands transmission of monetary policy in a changing during upswings in business activity. The ability financial environment provides the setting for of business to obtain such lines at banks pro­ understanding monetary developments over the vided a foundation for the additional growth of year. short-term borrowing in the commercial paper market. As the cost of issuing CD’s varied and busi­ ness borrowing became more responsive to in­ T H E F IN A N C IA L terest rate differentials, the prime rate of banks E N V IR O N M E N T S IN C E 1970 began to respond faster to changing market-rate The Federal Reserve has continually grappled patterns. Some banks adopted a practice of with the problems of achieving its policy objec­ relating their lending rate to short-term market tives in a dynamic economic setting. In recent rates and, in general, loan terms adjusted more years, the System has sought to implement its quickly. The enhanced ability of both banks and goals for the economy by targeting the longer- business to meet financing needs, albeit at po­ run growth of the monetary aggregates, particu­ tentially increasing costs, made them willing to larly Mx but also including broader measures. permit their liquidity to deteriorate. As a result, This emphasis has generated considerable dis­ the relationship between the size of the cash cussion on how policy instruments should be balances and the level of expenditures was al­ used to achieve intermediate money and credit tered. This was reflected in variations in the growth objectives and on the relationships be­ velocity of money and in the divergence be­ tween these monetary aggregates and the eco­ tween the growth of credit and the money stock nomic variables that policymakers seek ulti­ over the past several years. mately to influence. The System impacts on its Inflation and its attendant pressures on short­ aggregate objectives and ultimate goals with a term interest rates also impacted on credit flows. lag through the financial markets, whose chang­ As the upward price trend became imbedded in ing structure reflects the response of institutions investor expectations, investors showed some to economic developments and to the System’s reluctance to commit funds to long-term securi­ policies. An understanding of the role of the ties. The increased dependence of borrowers on aggregates in this interactive process is crucial short-term markets contributed to the illiquidity to the setting of policy instruments and objec­ of the economy. tives. Sectors primarily dependent on long-term The FOMC pursues its aggregative objectives financing—most notably housing and con­ primarily through its instructions to the Manager struction—experienced particular difficulty. of the System Open Market Account. The This problem was accentuated as individuals Manager translates these into weekly and daily were attracted to high rates of return on open decisions affecting bank reserves that reflect the market instruments, at several stages, and funds concern of the FOMC with the unfolding be­ were diverted from banks and thrift institutions. havior of the aggregates. Important institutional But individuals became less liquid when their and structural changes over the past 5 years have savings were put into market instruments, since affected importantly the transmission mecha­ such commitments are often difficult to reverse nism set in motion by the System’s operations. in comparison with drawing down a deposit. The credit market environment has become This showed up in the slow growth of M2 and dominated by bank emphasis on liability man­ M3—M2 plus deposits at savings and loan asso­ agement. The suspension of Regulation Q con­ ciations and mutual savings banks—for certain straints on large CD’s, in two stages between extended periods over the past 5 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy in Changing Environment 199 The imposition of wage and price controls difficulty in adjusting their domestic policies in different forms also affected the financial adequately for the rapid internationalization of atmosphere. Interest rates dropped sharply im­ the money and capital markets and the attendant mediately after the announcement of control growth of international credit throughout much measures in August 1971. In the ensuing of the period. months, demands for credit and money abated, given the reduced need to make expenditures in anticipation of rising prices. S Y S T E M P O L IC Y As shortages of goods emerged, however, F O R M U L A T IO N credit demands rebounded and then accelerated. S IN C E 1970 The slow rise of the prime rate over much of 1973, partly in response to efforts by the Com­ Monetary policy exerts its dynamic influence on mittee on Interest and Dividends to temper in­ the financial environment and the economy creases in administered interest rates, brought through its impact on the expectations of with it a rapid escalation in business borrowing households, businesses, and financial institu­ at banks. Banks responded by scrambling to tions. Their behavior interacts with the Sys­ raise funds in the CD market and rates on these tem’s monetary and regulatory stance to deter­ instruments climbed. For a time, the rise in mine the course of the monetary aggregates and CD’s outpaced the expansion of other financial the economy. The System’s emphasis on aggre­ instruments and the composition of credit in the gate targeting in recent years has itself been one economy was skewed toward banks. The Sys­ of the institutional changes affecting the gener­ tem undertook to temper bank credit expansion ation of expectations among economic units. in 1973 by placing marginal reserve require­ The System has specified objectives for the ments on CD’s for the first time. monetary and credit measures as a means of The expansion of foreign credit markets and quantifying the leverage it wishes to exert on their increased internationalization also changed the economy. The experience accumulated from the course of credit flows in the domestic econ­ targeting the aggregates has led the Committee omy. Large multinational firms were able to to focus on longer-run growth targets for the shift their cash balances and financing demands aggregates on the grounds that temporary aber­ from market to market in response to interest rations in monetary expansion were likely to rate differentials and to changing expectations have negligible effect on the course of economic about exchange rates. The rising standard of activity. The Committee has also refined the living in foreign countries placed greater de­ way it gives instructions to the Manager. mands on many domestic sectors, such as agri­ Evidence illustrated the long and variable lag culture. between System action and the behavior of the The growth of foreign banking institutions in aggregates. Several econometric models showed the United States and the expansion of domestic that changes in short-term interest rates exerted banks abroad extended channels of speculation most of their influence on money demand only among money markets. Episodes of intense after a number of months. Estimates showed speculation against various currencies were that the size of the impacts and the length of often financed by borrowed funds and contrib­ the lag were variable with respect to changes uted to accelerated credit growth. The lifting in nonborrowed reserves and the Federal funds of the Voluntary Foreign Credit Restraint pro­ rate. Shifts in the underlying financial structure gram in this country encouraged a further ex­ could also affect the behavior of the money pansion of international dollar and foreign cur­ supply. There was growing understanding over rency lending. The Euro-dollar market, which time of the difficulty of forecasting accurately is not subject to the direct control of any central the impact of a particular operational strategy bank, expanded and became more integrated on Mx and the other aggregates. with the domestic financial markets. In general, The Committee since 1970 has tried alterna­ national monetary authorities may have had tive means of formulating its monthly instruc­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin □ April 1975 tions to the Manager.2 A basic part of its in­ intent. This approach served to avoid generating structions described how the Manager should market reactions to day-to-day policy imple­ respond to incoming data on the aggregates. mentation that would be out of step with the Soon after its move to aggregate targeting, the longer-run direction of policy. Committee adopted weekly and monthly track­ The Manager reacted to new information on ing paths to be used as reference points against the aggregates by altering supplies of nonbor­ which strength or weakness in the measures rowed reserves in a way that produced an or­ could be gauged. These paths were designed to derly rise or fall in the Federal funds rate. Over be consistent with the FOMC’s longer-run ag­ the period between FOMC meetings, permissi­ gregate objectives, although the Manager often ble variation in the Federal funds rate was had to allow for unanticipated developments that constrained by the FOMC—although the allow­ could affect the short-run behavior of the various able range could be, and often was, amended measures. between meetings. The direction and extent of In early 1972 the FOMC began to specify the change in the funds rate were governed by acceptable ranges for reserves against private the observed behavior of the aggregates relative deposits (RPD’s) as a means of fostering the to their desired behavior and by conditions in desired growth in the aggregates. The ranges the financial markets. The ability of the Manager described growth in this variable over the month to vary the nature of reserve-supplying opera­ of the meeting and the ensuing month. The tions marked an extension of the specifications Committee found, however, that the actual re­ in the proviso-clause form of the directive used lationship between RPD’s and Mx often failed from 1966 through 1969, which provided for to develop as expected, at least in the time a response to developments in various aggre­ period from one meeting to the next. As a result, gates in the periods between meetings. the Committee and the Manager gradually came Over the years since 1970, the Committee has to place more emphasis on underlying deposit often made room for greater variation in the behavior as a guide for the Manager’s response. funds rate over a month to promote the The RPD experiment encouraged the FOMC to achievement of its objectives for the aggregates. adopt 2-month tolerance ranges for M1 and M2 Growing awareness of the System’s emphasis toward the end of 1972 and these were still on the aggregates and of the Manager’s response being used 2 years later. to incoming information began to have an im­ In its operational instructions, the Committee portant impact on expectations in the economy. has tended to place the most emphasis on M1, Financial market participants began to follow although by the end of 1974 this emphasis was the behavior of the money supply in forming coming under question. At the same time, the their anticipations of interest rate movements. FOMC has guided the extent and the timing of They looked to the Federal funds rate for con­ the Manager’s response to incoming data to firmation of expectations about System action. allow for financial market developments and other policy considerations. The Committee at its meetings has often widened the tolerance T H E F IN A N C IA L S Y S T E M ranges for the aggregates by raising or lowering A N D M O N E T A R Y P O L IC Y IN one of the bounds, so the Manager’s responses would remain consistent with underlying policy 1974— O P E N M A R K E T O P E R A T IO N S A N D T H E M O N E T A R Y A N D C R E D IT 2 Alan R. Holmes, articles on open market operations in 1971, 1972, and 1973, Federal Reserve Bulletins, A G G R E G A T E S April 1972, pp. 340-62; June 1973, pp. 405-16; and May 1974, pp. 338-50, respectively. For the year 1970, Events in 1974 put the ability of financial insti­ Paul Meek and Rudolf Thunberg, “Monetary Aggre­ tutions to adapt to changing circumstances to gates and Federal Reserve Open Market Operations,” Monthly Review, Federal Reserve Bank of New York, a severe test. The already overextended finan­ April 1971, pp. 80-89. cial system was confronted with inventory fi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy in Changing Environment 201 nancing and other credit demands in an atmos­ of M2 and RPD’s rose to near the upper bounds phere of international scarcities of materials and of their respective ranges. This ordinarily would sharply higher prices. Monetary policy sought have prompted the Manager to permit the funds to deal with points of pressure without relaxing rate to rise to the 9Vi per cent top of its range its efforts to restrain the underlying forces of of variation. However, with the publication of inflation that were causes of financial strain. successive weekly Mx bulges in February, the Later, as recessionary tendencies began to cu­ financial markets had become very apprehensive mulate, the System became willing to support about the likelihood of a reversal of the Sys­ the rebuilding of liquidity needed for healthy tem’s interest rate posture. economic growth. To highlight significant de­ The FOMC agreed on March 1 that reserve velopments in 1974, the following discussion operations should be conducted in a manner of policy and the financial system separates the consistent with maintenance of the funds rate year into three chronological sections. around 9 per cent. But 10 days later, when additional data showed that rapid monetary growth was persisting, the full range for the January-M arch funds rate was restored though the Manager was The outlook for the economy was murky when instructed to proceed very cautiously in re­ the year began. The oil embargo was producing straining reserve growth. By the March FOMC fuel shortages and working to reduce real eco­ meeting, the funds rate had risen to about 9.35 nomic activity. Several sectors of the economy, per cent and was approaching the level that had including housing and durable goods, appeared prevailed just before the start of the year. weak. Scarcities of needed materials were add­ In the financial markets, expectations that the ing to inflation and curtailing output in other oil shortage would significantly weaken the industries. Responding to this outlook, the economy were quite pronounced when 1974 Committee included a slightly higher rate of Mt began. While the rapid 8.7 per cent money growth in its longer-run objectives for the ag­ supply growth of the final quarter of 1973 had gregates and decided that the Manager should been somewhat worrisome, short-term credit seek a slight easing of money market conditions demands were more moderate than earlier in that unless growth in the aggregates appeared year. Banks started to rebuild holdings of se­ stronger than expected. The same objective for curities in expectation of a lessening of mone­ Mj in the first half of the year was retained in tary restraint. The prime rate was adjusted February, and the FOMC at both meetings spe­ downward late in January, and it fell by 3A cified 2-month tolerance intervals for the aggre­ percentage point to 834 per cent over the next gates that were associated with progressively 4 weeks. But it lagged declines in open market lower ranges for the Federal funds rate. rates, and borrowing demands at banks thus While the Manager had made little change decelerated. in his approach to reserve management in the Business and financial market participants opening weeks of the year, he moved promptly were generally anticipating interest rate de­ to attain some easing of money market condi­ clines, and there was some move to refund tions shortly after the January FOMC meeting. short-term liabilities by borrowing in the capital These moves were intensified when it initially markets. A downtrend in rates became estab­ seemed that Mx and RPD’s would fall below lished by the end of January as the Trading their December-February ranges of tolerance. Desk’s moves to supply nonborrowed reserves By early February Federal funds were trading more readily became evident and as a nearly at 8% per cent to 9 per cent and the effective 3 per cent decline in Mt for that month was rate had declined by 75 basis points or so from observed in the published data. the start of the year. Short-term interest rates fell appreciably— It first appeared likely that this trend could averaging 70 to 80 basis points lower in Febru­ continue after the February meeting, but ary than in January. Securities dealers began to moved above its 2-month range and estimates take on substantial inventories, and the issues Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin □ April 1975 offered in the Treasury’s February refunding rates to unprecedented levels. The financial were bid for aggressively. Long-term rates de­ markets experienced considerable duress, and clined only slightly, however, as inflation wor­ liquidity considerations became paramount. ries and increases in supply dampened sentiment While the Committee continued seeking to re­ in the bond markets. New highly rated utility strict rapid monetary expansion, it acted to issues were offered to return around 8 Vs per reaffirm the Federal Reserve’s role in maintain­ cent, 10 basis points lower than in January, and ing the viability of the financial system. yields on older issues were little changed. The strong credit and monetary expansion As the winter progressed, concern about that emerged in the first quarter of the year prices began to have stronger impact. It became underscored the impact of the very rapid and apparent that the slowdown in the economy was entrenched rate of inflation. Looking ahead, it related mainly to oil and that otherwise demand appeared that the lifting of the oil embargo in was strong. The expected returns on holding mid-March might give support to greater per­ inventories of many goods were revised higher sonal consumption expenditures and could have and demands for short-term credit expanded. an expansive effect on economic activity by the Borrowing in the commercial paper market summer. Government spending was likely to began to grow rapidly. continue at a substantial rate, and business in­ Some began to reassess sentiment about the vestment demands remained strong. course of monetary policy and interest rates. In consequence, at the March FOMC meet­ The revision in expectations grew more wide­ ing, the staff noted that retention of the longerspread when extremely rapid monetary growth run objectives for the aggregates was likely to emerged and was confirmed during February. entail an extension of the upward thrust in As the Manager’s response to the aggregates interest rates. At the same time, estimates of became clear in the Federal funds rate, other the demand for money over the months ahead interest rates began to rise at a rapid pace. Banks were subject to more error than usual. In addi­ began to revise estimates of the likely course tion to the uncertainty about the economic outof credit demands, and securities dealers started Selected interest rates to cut inventories substantially. In per cent By the time of the March FOMC meeting, the 3-month Treasury bill rate was near the 8 1973 1974 Rates per cent level of the previous November, after Dec. Feb. July Aug. Sept. Dec. having fallen below 7 per cent 5 weeks earlier. 28 13 3 27 30 31 Long-term rates were pressing against the record Short-term highs of August 1973, with new Aaa-rated util­ Federal funds— ity bonds offered at close to SV2 per cent. Yields weekly average effective rate .. 9.52 8.93 13.55 11.84 11.12 7.35 on high-coupon Government bonds were rising 3-month Treasury bill — average to and above earlier records. A 7-year note bond yield equiv­ alent ....................... 7.65 7.31 8.07 10.31 6.58 7.34 auctioned in the February refunding at 6.95 per Discount rate—Fed­ cent was yielding close to IV2 per cent. eral Reserve Bank of New York 7.50 8.50 8.00 8.00 8.00 7.75 3-month CD’s .......... 9.22 8.08 12.15 12.45 10.69 9.25 M arch-S eptember Long-term U.S. Govt, securities 6.47 6.50 7.12 7.30 7.27 6.78 Recently offered The dynamics of change in the financial mecha­ Aaa-rated utility bonds ..................... 8.10 8.19 9.79 10.26 10.27 9.67 nism became very evident in the months that State and local govt, followed the March FOMC meeting. The bonds—Moody ’ s Aaa bonds.............. 4.85 5.05 6.20 6.35. 6.40 6.70 growth of Mx remained quite rapid, expanding Federal Housing Ad­ ministration mort­ at a 6.7 per cent rate in the second quarter. The gages—secondary System’s efforts to retard money growth amidst market rates.......... 8.78 8.54 9.85 10.30 10.38 9.51 strengthening expectations about the course of Note.—Data from Board of Governors, Federal Reserve Bank economic activity and prices brought interest of New York, Moody’s Investors Service, and Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy in Changing Environment 203 look, there were the problems of assessing how Thereafter, the Manager found it increasingly borrowers, lenders, and savers would react to difficult to temper the rise in the funds rate, as the recent and prospective rates of inflation. banks sought to limit borrowing at the discount These related uncertainties remained through the window. The Trading Desk found that supplies summer, though the ongoing rise in interest of securities were often insufficient for open rates was expected to exert restraint on monetary market operations as dealers had sharply re­ growth as time went on. duced their inventories. The Committee agreed At its March meeting, the FOMC voted to to permit the funds rate to move higher than moderate growth in the aggregates over the contemplated at its April meeting rather than months ahead. Expansion in Mx had been sub­ conduct reserve-supplying operations on a scale stantial in February, and the impetus to rapid that would risk market misinterpretation of the growth was evidently continuing. To allow for System’s policy intent. While the Desk had been greater progress toward the achievement of a anticipating a Federal funds rate of around 11 moderate growth objective, the FOMC reduced per cent as the next meeting approached, it rose the lower ends of the 2-month tolerance ranges considerably more and reached a record weekly for the various measures relative to those sug­ average of 11.46 per cent in mid-May. gested by the staff. This action meant that the Business borrowing at banks became extraor­ Manager would not respond to lower growth dinarily large, as economic activity proved to rates, which might be temporary. be considerably stronger than had been expected The same approach was taken at subsequent earlier. By the spring the credit proxy was meetings through July, and each time the FOMC expanding at an unprecedented rate, the prime raised the range for the Federal funds rate rela­ rate was up to 11 lA per cent, and banks were tive to the one specified at the previous meeting. bidding intensely to obtain needed funds in the At times in the interval between meetings, the money markets—raising more than $10 billion Committee agreed to let the funds rate increase in April and May in the CD market. Most banks further than initially contemplated. continued to confine activity to the shorter-ma- By August, monetary growth had moderated turity area, often driving rates on CD’s and substantially and had fallen below the longer- Euro-dollars well above the Federal funds rate run target. The outlook for the rest of the year and making rollovers a persistent problem. The suggested a resumption of faster expansion but drive to issue CD’s extended nationally, and not at a pace that was likely to call forth further smaller banks began to rely increasingly on the increases in interest rates. The FOMC at that money market for funds. time was able to reduce slightly the upper end These pressures soon extended past the bank­ of the range of variation in the Federal funds ing system and yields in the credit markets rate—for the first time in 6 months—while re­ began to rise dramatically. Commercial paper taining its earlier objective for Mx and the other rates jumped by 250 basis points between midmeasures. March and early May, with the rate on 90-day The Manager began soon after the March dealer-placed paper reaching 11 per cent. meeting to restrict the availability of nonbor­ Bankers acceptance rates rose similarly amid rowed reserves, given evidence that overly rapid extremely heavy activity. Treasury bill rates growth was continuing. Such actions were rose by relatively less than rates on other money extended through early May, but they became market instruments, but both the 3- and 6-month increasingly conditioned by financial market issues were auctioned at rates in excess of 9 considerations. Widespread evidence of strong per cent by the second week in May. Individual inflationary pressures in the economy made fi­ investors channeled more funds into bills and nancial market participants especially sensitive soon bought substantial amounts of Treasury to the ensuing rise in the Federal funds rate. coupon and agency issues. In the May refund­ Banks began to bid more aggressively for re­ ing, small investors purchased $1.5 billion of serves, and the funds rate rose to around 10 Vi the new issues, more than one-third of the per cent by mid-April. amount being offered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Federal Reserve Bulletin □ April 1975 The nature of market pressures was signifi­ positions cautiously, preferring to risk excess cantly altered, as news of the difficulties being reserves rather than deficiencies. In these cir­ faced by the Franklin National Bank became cumstances, the average Federal funds rate widespread by early May.3 The substantial jumped by 158 basis points to more than 13V2 growth that had taken place in CD’s and the per cent in 1 week in early July, well above attendant reduction in bank liquidity were dis­ the 12 per cent level then intended. While the turbing. Investors began to show preference for Manager pumped in nonborrowed reserves al­ instruments of only the largest and most well- most continually and at a pace that would have known banks. Concern over the financial stabil­ produced an acceptable rate under normal cir­ ity of some open market borrowers emerged, cumstances, the rate showed little tendency to and it became more difficult to refinance matur­ edge lower. It became increasingly clear that ing liabilities. more massive reserve-supplying operations Real estate investment trusts and utility com­ would be needed to push the funds rate down. panies encountered particular problems. The The Committee on July 5 instructed the yield differentials between instruments with dif­ Manager to continue efforts to bring the rate ferent credit ratings widened appreciably in both down to within its 11% to 121A per cent range the short- and long-term debt markets. In the of tolerance but not to the extent of flooding Government securities market, the growing the market with reserves. But these pressures preference of investors for less risky obligations persisted and the Federal funds rate remained led to yield declines. Some began to think that well above 13 per cent. One week later, the these pressures would soon lead banks to re­ FOMC agreed that operations should be under­ strain asset growth, so that the rapid rate of taken promptly to reduce the funds rate to 13 monetary expansion would moderate and lead per cent and to permit it to decline further should to a modification of System policy. market factors work in that direction. After The Manager moved cautiously in restricting steadily and regularly pumping in reserves, the reserve supplies over the rest of May and well pressures finally gave way around the time of into June. The aggregates generally stayed on the FOMC meeting in mid-July. the high side of their ranges, and the Federal After the exceptionally taut money market funds rate was around 11% per cent by mid- conditions had faded, the Manager directed June. Conditions in the securities markets had operations at maintaining a Federal funds rate stabilized to some degree. of around 12% per cent until the mext meeting But in late June and early July, liquidity of the Committee in August. Growth in the pressures erupted again and there was a signifi­ aggregates moderated significantly in the sum­ cant deterioration in domestic and international mer months so that by late August most meas­ financial market conditions. The failure of a ures had fallen below their tolerance ranges. The bank in Germany renewed apprehension in the Manager thus sought some easing in bank re­ markets. Pronounced shifts in borrowing and serve conditions, and the Federal funds rate lending patterns occurred, and many institutions declined to 11% per cent—near its level 3 reduced the amounts that they would lend to months earlier. individual borrowers. The intense demands for liquidity that Banks acted to reduce borrowing at the dis­ emerged in the banking system in early July had count window, apparently to preserve this priv­ a profound impact on the credit markets. Con­ ilege for later use, and managed their reserve cern over the safety of assets was heightened, and investors became exceptionally reluctant to 3 On May 12 the Federal Reserve indicated that it lend on any but the most secure instruments. would advance funds to Franklin National if that bank Commercial paper rates rose to 12% per cent experienced unusual liquidity pressures. As its deposits and other liabilities fell, Franklin’s use of the discount in early July, and dealers began encouraging window grew substantially and reached about $1.75 borrowers to use bank lines of credit. The prime billion by early October, when it was taken over by rate soon rose to an unprecedented 12 per cent. the European-American Bank. At that time, the Federal Deposit Insurance Corporation assumed Franklin’s lia­ The largest banks were able to accommodate bilities to the Federal Reserve. more loan demands as they found CD and other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy in Changing Environment 205 short-term funds readily available, but smaller oil-exporting countries turned out less strong banks encountered difficulty in refinancing ma­ than many had anticipated. Treasury bill rates turing liabilities. Major money center banks set at the August 26 weekly auction rose to paid as much as 12V2 per cent on short-term records of 9.91 per cent and 9.93 per cent for CD maturities and raised $2.8 billion of new the 3- and 6-month issues, after falling below funds in July. In the bankers acceptance market, 8 per cent on several occasions earlier in the the suspension of operations by the largest summer. dealer added to the difficulties of lesser known Demand from small investors absorbed a high banks in selling their paper. Rates rose sharply proportion of substantial new offerings of Gov­ and a tiered market developed, although the ernment and Federal agency issues. In the Au­ situation was relieved by increased System gust refunding the Treasury placed unprece­ buying of acceptances under the enlarged dented 9 per cent coupon rates on two note leeway adopted by the FOMC on July 18. offerings and small investors purchased $2.3 Money market pressures ebbed as the summer billion of the $4.3 billion sold. The 33-month progressed, though the markets were thin and and 6-year issues were awarded at rates of 8.59 volatile. But by early September, CD and com­ per cent and 8.75 per cent, respectively. An mercial paper rates were moving back toward additional $400 million of SV2 per cent bonds earlier highs, reflecting concern over the size was issued at 8.63 per cent, compared with the of forthcoming maturities. To encourage banks 8.23 per cent yield set when the bonds were to rebuild liquidity by extending the maturity first issued in the May refunding. Rates on new structure of their liabilities, the Board of Gov­ Federal agency issues reached new highs, as ernors of the Federal Reserve System amended borrowing by the housing-related agencies in­ Regulation D on September 5 to remove the 3 creased. While the markets remained under per cent marginal reserve requirement on time pressure, the deceleration in the growth of the deposits and other obligations maturing in 4 money supply over the summer and into Sep­ months or longer. tember provided hope that interest rates could In the debt markets, prices fell substantially soon move lower. during the summer amid growing apprehension about their ability to withstand cumulating li­ September— D ecember quidity pressures. Stability re-emerged but the concern about liquidity pressures resurfaced pe­ The substantial and widespread erosion of li­ riodically and remained a critical factor in the quidity produced a strong response that emerged markets. Uncertainty about the level of yields toward the close of the year. Monetary expan­ needed to attract buyers prompted underwriters sion remained slow, and the Committee’s efforts to sell issues on a negotiated basis and also to achieve more rapid growth met with limited encouraged certain issuers, mainly banks, to sell success. Even though the System encouraged notes whose returns were tied to Treasury bill substantial interest rate declines, both through rates. Postponements and reductions of cor­ open market operations and regulatory changes, porate and tax-exempt issues had little impact banks sought to exercise restaint of their own as they only added to a mounting calendar of by limiting loan commitments and asset growth. future offerings. By early September it took 10 Concern over the adequacy of bank capital and per cent to market a new long-term Aaa-rated the financial prospects of borrowers increased. telephone offering, compared with the 8.80 per These considerations were also evident in the cent yield offered by the parent concern in May. debt markets amid a sharp contraction of real In addition, the volume of short-term notes economic activity toward the end of the year. reaching the market increased. The outlook for the economy at the Sep­ The safety and liquidity of Government se­ tember FOMC meeting suggested that the curities had initially generated some additional weakness in real economic activity would per­ yield declines in late June and July. This ten­ sist in the fourth quarter of the year and in the dency was later reversed, as supply pressures first half of 1975. The unemployment rate had mounted and as demand for such issues by begun to edge up, and it was expected that a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin □ April 1975 contraction in housing would continue while lower limit agreed upon by the Committee on demands in other sectors would moderate. Al­ October 4. While the aggregates moved toward though inflation was still rapid, the behavior of the upper end of their ranges after the October prices appeared to be showing signs of im­ meeting, the FOMC re-emphasized its concern provement. with the underlying sources of weakness in the In view of this situation, the Committee de­ economy and agreed, on November 1, that the cided to seek growth in the monetary aggregates Manager take actions that would lower the funds at rates slightly higher than those contemplated rate from 93A per cent to 9V2 per cent. The earlier and raised its longer-run objectives for strength in M1 turned out to be temporary, and Mi and other measures. A staff analysis sug­ the Manager became steadily more accommo­ gested that money market conditions should dative in providing nonborrowed reserves over ease in the period ahead if Mx were to reach the rest of the year. By the final week he was the expansion desired over the longer run. seeking availability consistent with a funds rate In the months that followed, estimates of the of around 8 per cent or below, nearly 3 per­ decline in interest rates that would be needed centage points less than its level 3 months earlier to spur a resumption of monetary growth be­ and the lowest in more than a year and a half. came successively larger as the economic out­ The Manager often had difficulty in encour­ look worsened. had grown at less than a aging the Federal funds rate to decline as the 2 per cent rate over the third quarter and it year drew to a close. Substantial additions to remained below its longer-run target, increasing nonborrowed reserves facilitated bank efforts to at 4.3 per cent in the final 3 months of the year. reduce discount window borrowing. Market Declines in market interest rates fostered better churning around tax and oil payments dates inflows of time and savings deposits, and M2 often generated enlarged demands for excess rose appreciably but at a slower pace than in reserves, and actions by banks to improve the the first 9 months of the year. Banks permitted appearance of their balance sheets on statement maturing CD’s to run off, and growth in the dates were more evident than in other recent credit proxy slowed further. The Committee years. The resultant money market pressures became steadily more willing to see money were particularly intense in the final week of market conditions ease, and each month it 1974 when Federal funds traded near 9 per cent lowered significantly the range of variation al­ until the rate fell to less than 4 per cent on the lowed for the Federal funds rate. On two occa­ final day of the year—when the banking system sions it made provision for further declines in emerged with excess reserves averaging more the period between meetings. The Board also than $600 million for the statement week. restructured and reduced reserve requirements Short-term interest rates declined quite in mid-November. In early December, it ap­ sharply in the final months of the year, but the proved a reduction in Federal Reserve Bank downtrend was often interrupted. While the discount rates from 8 per cent to 7% per cent, slow growth of the monetary aggregates, the the first cut in 3 years. Staff assessments pre­ Manager’s operations, and System regulatory sented at the December meeting suggested a changes generated favorable expectations about significantly larger contraction in economic ac­ the interest rate outlook, the perpetual refinanc­ tivity than had been anticipated earlier, and the ing of maturing debt and the more selective Committee raised its longer-run objectives for preferences of investors worked against this Mx and other measures. trend. When the monetary aggregates moved near Banks became more concerned about liquid­ or below the ranges of tolerance after the Sep­ ity and sought to restrain asset growth. Reduc­ tember FOMC meeting, the Manager acted to tions in the prime rate lagged those on open attain some further easing in money market market rates, and bank investment portfolios conditions. The funds rate had declined by continued to contract. Periods of heavy CD nearly % percentage point to 11 per cent by maturities were often preceded by drives to early October and then fell quickly to just under refinance these obligations well ahead of time. 10% per cent over the next 2 weeks, the new CD rates fell by more than 250 basis points to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy in Changing Environment 207 as low as 8 V 2 per cent on 30-day maturities at York City. The Bond Buyer's index on tax-exone point. But they rose over a good part of empt yields rose to a record 7.15 per cent in December and major banks paid as much as 9V2 mid-December, 2 percentage points above its per cent to bolster deposit totals over the year- level near the start of the year. end. Some effort to extend the maturity of these Government securities continued to fare rela­ obligations became apparent in the early weeks tively better, though the prospects of large Fed­ of 1975. eral budget deficits and attendant Treasury bor­ Whereas large money center banks found rowing tempered market sentiment. Dealers themselves making loans to industries with spe­ added substantially to inventories in the No­ cial problems, other banks actively discouraged vember Treasury refunding, but the distribution borrowing. The resultant shift of some refund­ phase proceeded slowly. Demand from institu­ ing to the commercial paper market worked to tional investors and banks remained modest, slow the decline in these rates. Although while noncompetitive tenders fell off in view dealer-placed 90- to 119-day paper had fallen of the reduction in yields since the summer. The to 9Vs per cent by mid-December, down from Treasury sold new 3- and 7-year coupon issues 113A per cent in early September, most of this at yields of about 7% per cent, some 65 basis drop occurred shortly after the end of the third points below earlier highs. At the year-end, quarter. While the Federal funds rate in De­ yields on intermediate coupon securities were cember averaged 8.53 per cent, almost IV 2 around IVa to 7% per cent, still about V 2 per­ percentage points below its level a year earlier, centage point above levels at the end of 1973. rates on private money market instruments were Additional 8V2 per cent bonds were issued in only 15 to 30 basis points lower. November at 8.21 per cent, close to their yield The long-term debt markets faced a growing in the previous May and 75 basis points above volume of financing as businesses began to the yield on a new 20-year issue the previous refund short-term borrowing. The continued February. hesitancy of investors to commit funds and Treasury bill rates generally moved in concert concern about the impact of a slowing economy with short-term rates over the final months of on the financial prospects of borrowers added 1974 and thus closed well below levels a year to upward pressure on yields. While yields earlier. Most of the declines occurred soon after declined in October and part of November, they the System’s moves toward a more accommo­ moved back up amid substantial additions to dative interest rate posture became evident. current and prospective supplies. Dealers were After falling from around 9 per cent to near 6xh reluctant to underwrite new offerings in view per cent from September to early October, the of their substantial losses earlier in the year. 3-month bill closed the year at 7.29 per cent, New Aaa-rated utility issues were sold at around compared with 7.71 per cent a year earlier. 9V2 per cent in late December, about % per­ centage point above their low in the quarter and O B S E R V A T IO N S 150 basis points above yields a year earlier. Investors continued to scrutinize the particular Experience over the past several years has dem­ aspects of different borrowers, and utility firms onstrated the complexity and variability of the had to offer considerably more than industrial relationships between interest rates, the growth borrowers in order to sell issues. in the different monetary aggregates, and the The yield spreads between firms with dif­ path of real economic activity. The use of ag­ ferent ratings also remained quite wide. The gregate targeting has probably contributed to the tax-exempt market came under particular stress clarity of monetary policy discussions, but poli­ as the year drew to a close, due partly to the cymaking itself has not proved easier. Evidence failure of bank demand to materialize as ex­ of structural changes in the financial system has pected in this stage of the cycle. The long-term reduced the policymaker’s confidence in the financial problems faced by many municipalities stability of the linkage between operational in­ in an inflationary environment were galvanized structions and desired long-run economic goals. by the publicity given to difficulties in New This raises questions about how the intermediate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin □ April 1975 monetary variables may best be used in a dy­ of high interest rates may lead to enlarged namic setting. demands for Mx as a compensation for the For most of the past 5 years, banks have been ongoing loss of liquidity. Thus, some periods considerably more aggressive than earlier in of rapid expansion in Mx have been accompan­ supplying credit and deposits. After the de facto ied by slower rates of increase in M2. At other lifting of Regulation Q ceilings on large CD’s stages, the rebuilding of consumer time and in 1970, banks became more confident of their savings balances as market interest rates fall ability to meet loan commitments. Their devel­ may be accompanied by a shift out of demand opment of escalator clauses on loan contracts deposits, which limits Mx growth relative to that and a floating prime rate increased the profit of M2. The availability of new types of time incentive for loan expansion during upswings deposits on occasion may also impact on the in economic activity. Overly rapid growth in public’s desire for the different categories of money and credit was often sustained for some deposits at given interest rates and income time after interest rates began to increase. Rates levels. had to rise to a much greater extent—and possi­ Whereas emerging forces can often cause bly for a longer period of time than per- inexplicable shifts in the behavior of a particular viously—in order to induce the asset adjust­ aggregate, a group of measures will generally ments by banks that were needed to stem bank track the economy reasonably well. Financial credit and money supply expansion. The use of change has evidently affected and will continue marginal reserve requirements added to the cost to impact on the supplies of, and demands for, of funds, but the size of the changes did not monetary assets. In these circumstances, it is seem large enough to affect significantly bank doubtful that any single measure qualifies as the policies. Only as credit risks increased with the “best” intermediate monetary target because high level of interest rates and the slowing the linkages between System operations and the economy did banks move toward more conser­ aggregates— and between these measures and vative loan policies. the economy—are not likely to remain un­ This reassessment of the value of liquidity— changed or predictable over time. or the risk of illiquidity—worked to retard a The Committee’s adoption of aggregate tar­ resumption of monetary growth in the latter part geting in 1970 established a means of making of 1974. Lagging reductions in the prime rate open market operations more sensitive to encouraged borrowers to repay their loans and emerging trends in the economy. While the thereby cut compensating balances. But banks Committee has placed most emphasis on Ml5 showed little inclination to undertake the signif­ it often recognized that this measure was not icant expansion of investments that previously an unfailing guide. It did not adopt unvarying occurred in this stage of the cycle. Although “rules” for setting Mx objectives or for achiev­ nonborrowed reserves increased and short-term ing them, despite many suggestions to this ef­ interest rates fell substantially after the summer, fect. The FOMC allowed some flexibility to the size of the banking system changed little, respond to the possibility that the behavior of and this worked to restrict the growth of depos­ other measures in the period between meetings its. could provide grounds for a reconsideration of System-induced changes in interest rates also a response to Mx. exert influence on money growth by affecting From the Manager’s standpoint, the experi­ the public’s demand for liquid assets. But the ence in recent years suggests that it would be extent of this response appears variable, perhaps useful to extend this flexibility. It should be because the demand for a particular form of possible to weigh more evenly several of the money is also affected by changes in the finan­ aggregates in the specifications given to the cial system. The substantial growth in alterna­ Manager. By capturing a broader range of in­ tive short-term investments may alter the pub­ formation, the Committee’s instructions might lic’s desired holdings of deposits. Shifts into the then become even more attuned to the underly­ newer forms of market assets during the periods ing economic conditions that it seeks to affect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

209 The Structure of Margin Credit Data on margin credit, uniformly defined and Margin credit extended by banks, unlike that covering all lenders, have now been collected at brokers and dealers, has expanded on balance annually since June 1970—a period long enough over the reporting period, and it reached a new and varied enough to permit some assessment high of more than $3 billion in June 1974. of structure and trends in margin lending. For Barely one-third of these loans, however, rep­ member firms of the New York and American resented regulated credit like that in margin Stock Exchanges—the major suppliers of regu­ accounts. More than $2 billion were unregulated lated margin credit—these data have been loans to purchase or carry “nonmargin stocks,” available since 1968. (See Bulletin articles: which banks can make but brokers cannot. “Margin Account Credit,” June 1968, and Nearly one-half of the total ($1.4 billion) fell “Measures of Security Credit,” December into the separately reported category of “bank 1970.) stock loans” to borrowers who were acquiring Credit supplied to margin account customers other banks and pledging these shares as collat­ by brokers and dealers makes up the bulk of eral. This loan category has been the most regulated loans to purchase or carry “margin important factor in the over-all expansion of stocks,” although the precise share has varied total margin credit at banks; but neither the from 79 per cent to 86 per cent. The statistical smaller volume of unregulated loans to purchase record shows that use of credit by margin ac­ or carry other nonmargin stock nor the regulated count customers has responded to upward and margin loan total has shown any close correla­ downward movements in stock prices—moving tion with trends in stock prices. Much of this in the same direction but much more sharply. lending thus appears unrelated to general market Margin credit doubled from mid-1970 to mid- expectations. 1972, while average prices advanced on balance Geographically, margin lending has been by 45 per cent. Over the next 2 years, it declined concentrated in a limited number of metro­ by 35 per cent, whereas the price index declined politan areas. Among these, Chicago banks by only 21 per cent from its level in mid-1972. reported the largest total in 1974, with heavy Over the entire period June 1968-June 1974, loan volumes in all categories. New York re­ margin account credit at brokers declined 18 per mained the most important single source of cent on balance. However, this trend was not regulated credit, though its share in this total uniform among firms, which appeared to have has declined from 28 to less than 20 per cent attracted differing categories of customers. over the reporting period. But the most striking Credit being extended by local and regional concentration of margin lending—both abso­ firms outside the New York metropolitan area lutely and relative to financial resources—oc­ actually showed a net increase of 29 per cent; curred in the East North Central and East South large multiregional branch systems experienced Central regions where Houston, Dallas, and only a 9 per cent decline, whereas firms based Minneapolis-St. Paul all reported margin loans in New York (excluding the major branch sys­ in excess of $100 million, and no less than 21 tems) reported a net drop of 45 per cent. metropolitan areas reported significant loan vol­ umes. The uniform margin credit reports cover a Note.—Ann P. Ulrey, Consultant to the Division of Research and Statistics of the Board of Governors of dynamic period in which numerous factors ex­ the Federal Reserve System, prepared this article. pected to influence demand for margin credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin □ April 1975 changed sharply from one reporting date to the ted to make such loans on an unregulated basis, next. These included stock prices and market banks are free to assign good faith loan value activity, margin requirements, the cost of credit, to the collateral.1 and the relative attractiveness of alternative Banks may also make unsecured loans to outlets for speculation or investment. Against creditworthy borrowers for the purpose of pur­ this historical background, it is possible to chasing or carrying listed stock without becom­ identify stable elements in the structure of mar­ ing subject to Regulation U. While such loans gin credit and also to distinguish those changes are classified by banks as securities credit, they over time that reflect cyclical patterns from those are not defined as margin credit either in com­ that appear to represent longer-term trends. mon usage or for purposes of regulation. Only loans to purchase or carry stock (as defined in the regulation) that are also secured, at least in S C O P E A N D R E G U L A T IO N O F part, by stock (so defined) are considered to be M A R G IN C R E D IT margin credit. If the stock acquired is a “margin stock,” the loan is subject to Regulation U; if According to the annual reports, margin credit not, it is included as unregulated margin credit includes all loans to purchase or carry stock (and in the bank’s annual report. certain closely related equity instruments that In mid-1974 a total of $6.7 billion regulated are defined as stock for purposes of margin margin credit was outstanding. Of this, brokers regulation) when these loans are secured by were extending more than 80 per cent, with New stock, similarly defined. Lenders of all types— York Stock Exchange member firms accounting brokers, banks, and others who make loans in for nearly all of that amount. Banks were the the normal course of their business—are subject source of more than 15 per cent, while all other to regulation when they extend margin credit. lenders (those subject to Regulation G) supplied Federal Reserve Regulations T (covering about 4 per cent. Banks were also reporting brokers and dealers), U (banks), or G (other more than $2 billion unregulated margin credit. lenders) determine the initial margin that bor­ These dollar totals, though substantial, may rowers must supply (their downpayment) by not seem large relative to a number of other specifying the maximum loan value that lenders credit magnitudes. Even in 1972, the peak year may currently assign to “stock” collateral for for margin credit, the $11 billion total outstand­ regulated loans. ing was small compared with real estate mort­ Credit extended to brokerage customers in gage debt of $565 billion and consumer instal­ margin accounts must be collateralized by mar­ ment debt of $127 billion. Margin credit, how­ gin stocks—those listed either on an exchange ever, has been singled out for selective control or on the Federal Reserve list of OTC margin ever since 1934 when the Securities and Ex­ stocks (comparable issues that are traded over change Act directed the Federal Reserve to the counter)—and this collateral has the loan “prevent the excessive use of credit in the value specified in the current supplement to purchase or carrying of securities.” Regulation T. Stocks not so listed have no loan Part of the reason for such controls is histori­ value in margin accounts carried with brokers. cal, since speculative trading on margins as low Thus, the entire $5.3 billion reported by brokers as 10 per cent had played a role in the stock and dealers in June 1974 was subject to margin market boom that led to the 1929 crash. More requirements. fundamentally, however, the need for control Those who borrow from banks must meet over margin credit is inherent in the nature of these same requirements when they use margin stock as an asset. When credit is directed toward credit to purchase or carry “margin stocks,” stocks that are readily marketable at prices that but banks—unlike brokers—can also extend credit to purchase or carry stocks that are neither Mf these same stocks are pledged to acquire “margin registered on an exchange nor included in the stock,” their value is limited to the percentage prescribed margin stock list. Inasmuch as they are permit­ in the current supplement to Regulation U. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Margin Credit 211 respond quickly to shifts in supply and demand, credit that can be supported by this excess its unregulated use can strongly reinforce up­ purchasing power depends on the current level swings and downswings in stock prices and, of initial margin requirements. The lower the through its impact on the stock market, may margin, the greater the upward pressure on have significant repercussions on the economy demand for stocks and the greater the contribu­ as a whole. tion of margin credit to a self-reinforcing up­ Widely held and actively traded stocks lend ward spiral with higher prices generating more themselves to use as collateral because they are excess purchasing power. The greater the extent readily valued and are pledged in such a form of such pyramiding, the greater in turn would that it is easy for the lender to sell them if be the market’s vulnerability to later margin necessary to settle the debt.2 Thus lenders can calls and self-reinforcing price declines. and do rely on the collateral rather than on the The concept of excessive credit use relates borrower’s creditworthiness in making margin not to the level of margin credit but to the actual loans, and the amount extended against a spe­ or potential impact of such credit on the stock cific package of stock depends on the market market. Accordingly, initial margin require­ value of the stock included. If market values ments are not aimed at restricting the aggregate rise, lenders are willing to increase the amount amount of margin credit to some predetermined of credit outstanding against that package. In level. Instead their two-fold purpose is first to the event that such values fall enough to jeop­ limit the magnitude of credit-based buying ardize the loan’s safety, lenders call for addi­ pressures generated by rising loan values in tional margin; if they fail to receive it, they sell boom periods and second to provide a buffer collateral to satisfy the debt. The New York between customers’ initial equity and the mini­ Stock Exchange specifies a 25 per cent mini­ mum maintenance levels that would trigger mum maintenance margin for all member firms, widespread margin calls. and many brokers routinely issue calls at higher figures. The closer the borrower’s initial margin is to M A R G IN C R E D IT E X T E N D E D the creditor’s maintenance margin requirement, B Y B R O K E R S A N D the greater the possibility that price declines will D E A L E R S lead to margin calls. Forced selling exerts downward pressures on an already falling mar­ Brokers and dealers are retailers of margin ket. The new declines in turn trigger additional credit, rehypothecating customers’ collateral margin calls, setting up a self-reinforcing spiral with banks and charging a mark-up of at least of selling pressures, more price declines, and V2 of a percentage point—usually more, espe­ more sales. cially in the case of small accounts. Margin Conversely, stock market credit may be account customers have been the principal users pyramided in rising markets. If rising stock of regulated margin credit over the period cov­ prices carry the market value of a customer’s ered by these data, but their precise share has collateral beyond what is needed to support his ranged from 79 to 86 per cent. Because broker­ existing debit balance, additional credit, up to age customers have been more responsive to the collateral’s new loan value, can serve as his trends in stock prices and other developments initial margin for new purchases. The additional likely to affect market expectations than have borrowers from banks or other lenders, the share of margin credit supplied by brokers and 2Historically, this ready marketability was limited to dealers has risen when total credit usage was ex­ issues listed on the securities exchanges, and for a number of years Regulations T and U applied to such panding and has fallen with declining volume. issues. Improved communications systems have since Table 1 traces the impact of declining stock allowed dealers to make broad markets for a number prices on margin account borrowing from 1968 of issues traded over the counter. Since May 1970, through 1970, followed by the 1970-72 up­ selected OTC issues have been included within the regulatory definition of margin stock. swing and then the sharp market drop through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin □ April 1975 TABLE 1 both sharper-than-average contractions during periods of declining credit usage and less Margin account credit, stock prices, buoyant expansions during years when both and margin requirements, 1968-74 stock prices and margin account credit were on the rise. As a result of these trends, the collec­ Percentage change Margin Debit Stock require­ from preceding year tive share of these firms in reported margin June 30— bal­ prices2 ments account credit dropped from 39 to 26 per cent. ances1 (per Debit Stock cent) Meanwhile the share supplied by local and re­ balances prices gional firms elsewhere was rising from 12 to 1968 6,150 56.64 80 19 per cent of the total and that by large, 1969 5,002 55.20 80 -19 - 3 1970 3,836 41.28 65 -23 -25 multiregional branch systems, from 49 to 55 per 1971 4,743 55.06 65 24 33 cent. A more detailed examination of dif­ 1972 7,689 59.87 55 62 9 1973 6,131 55.14 65 -20 - 8 ferences in lending experience and in the type 1974 5,025 47.14 50 -18 -15 of business done by firms in these three cate­ Summary changes: gories suggests that each had attracted a differ­ 1968-70 .. -2,314 -15.36 -38 -27 ing mix of customers who displayed divergent 1970-72 .. 3,853 18.59 99 45 1972-74 ... -2,664 -12.73 -35 -21 attitudes toward using credit in the stock market. For the reporting universe as a whole, the 1 In margin accounts, millions of dollars. number of firms submitting reports annually has 2NYSE index. declined steadily each June since 1969, when 371 member firms of the New York and Ameri­ June 1974. In aggregate terms, credit usage can Stock Exchanges had at least some custom­ moved in the same direction as stock prices, ers with margin accounts in debit status. Largely but more sharply. The cumulative decline in as a result of industrywide stresses and pres­ average prices from June 1968 to June 1970 was sures, which led to consolidation or liquidation 27 per cent—outpaced by a 38 per cent drop of stock exchange firms, only 232 reports were in margin account credit. The 2-year price rise received in 1974; this was 44 less than the between mid-1970 and mid-1972 was 45 per previous year. Nevertheless, the decline in the cent; over the same period, margin account number of reporting firms had relatively little credit doubled. By June 1974 receding stock direct effect on the amount of credit available prices had brought the price index to a point to margin customers because most existing ac­ 21 per cent below the mid-1972 level, but debit counts were transferred to other firms in the balances in margin accounts had fallen 35 per reporting universe. cent. The column showing margin requirements As in earlier years, the 1974 reports showed on successive reporting dates suggests, though margin credit heavily concentrated on the books less conclusively, that changes in the level of of large lenders; 11 of the 232 respondents initial margins affected relative rates of credit reported balances in excess of $100 million, expansion or contraction as compared with price which accounted for nearly 60 per cent of total changes over the same periods. credit. Firms with balances of less than $5 These aggregates confirm the general rela­ million numbered 114 but accounted for only tionship between the use that brokerage cus­ 4 per cent of the reported total. Respondents tomers make of margin credit to purchase stock varied almost as widely in geographic coverage and their expectations of near-term changes in as in volume of credit outstanding—ranging stock market prices. A closer analysis of indi­ from branch systems whose local offices were vidual reports, however, shows great diversity available to customers throughout the Nation of experience among respondents. More impor­ (and in many foreign cities as well) to firms tant for its long-run implications, such analysis conducting business from a single office in a reveals that one category of firms—those con­ single metropolitan area. Ten firms were classi­ ducting business principally within the New fied for purposes of this analysis as providing York metropolitan area—persistently reported multiregional coverage (defined as a minimum Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Margin Credit 213 of 50 offices in widely dispersed parts of the TABLE 2 country); 13 others had at least some branches Cumulative changes in margin account debits in noncontiguous States but fell short of this during expansions and contractions, 1968-74 standard. There were 73 firms that conducted Per cent change a regional business and 135 that confined their activities to a single city. Geographic coverage categories Throughout the 7-year period, all categories Time Other firms have undergone some erosion of numbers, and period br M an u c lt h i re s g y i s o te n m al s New York- Elsewhere Total based several firms have been reclassified as a result of expanding or contracting coverage. But 1968-70 .. - 33 -44 - 32 -37 broadly speaking, margin customers in most 1970-72 .. 104 79 132 99 1972-74 .. - 331 -421 - 18 -33 areas have had—and still have—two choices in selecting a broker. They may do business Net impact: 1968-74 .. - 9 -45 29 -18 through the local office of one or more of the 10 major branch systems, or they may select 1Adjusted for reclassification of one reporting firm to mula firm specifically associated with their own tiregional category. metropolitan area or region. In June 1974 the total number of such firms providing margin cent for that group. For the major branch sys­ credit was 222; of this number 94 were located tems each cycle produced changes closer to the in the New York metropolitan area while 128 national average, but the 9 per cent cumulative were located elsewhere throughout the country. decline in margin account credit from June 1968 Reporting firms in the New York-based group to June 1974 was only half as great as that for tended to be larger than their counterparts else­ the reporting universe. where. Seventeen with margin account debits Expressed differently, if the aggregate expe­ of more than $25 million accounted for more rience of all member firms of the New York than two-thirds of the $1.3 billion recorded for and American Stock Exchanges had duplicated the New York group. Among firms based else­ that of the major branch systems, debits in where, only six were in this size classification general margin accounts in June 1974 would and they were extending little more than one- have been $5.6 billion; if the experience of the fourth of the $945 million reported by firms in New York-based firms had been typical, the that geographic category. The major branch total might have been less than $3.5 billion; or systems were extending margin credit of nearly if that at regional and local firms outside New $2.8 billion in amounts ranging from just under York had set the pace, such debits would have $100 million to more than $1 billion. been almost $8 billion. Table 2 summarizes the differing impacts that These divergent trends did not result from successive periods of contraction, expansion, mergers, liquidations, or other structural shifts and renewed contraction in margin credit have within the securities industry. Comparisons of had on aggregate balances for the three geo­ year-over-year changes at the individual firms graphic coverage categories. Customers in all making up each coverage category (and limited categories have responded to the constantly to firms that reported margin debits in excess shifting incentives provided by changing stock of $1 million) revealed the same disparity. From market conditions, but these responses have not June 1971 to June 1972, for example, the ag­ blurred the persistent divergence in relative gregate of margin credit expanded by 62 per credit usage. Although the period as a whole cent. Of 93 New York-based firms, only 29 was marked by an 18 per cent cutback in aggre­ reported increases significantly greater than gate credit usage, margin account credit at re­ average (75 per cent or more), while 37 showed gional and local firms outside New York rose expansions of less than 50 per cent, with these on balance by 29 per cent; conversely, sharp below-average reports predominating in all size cutbacks and sluggish expansion at New York- classes. Outside New York, this pattern was based firms resulted in a net decline of 45 per reversed; 65 of 117 reporting firms showed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin □ April 1975 above-average increases and only 19 reported categories comes from active traders—many of below-average increases. Again the pattern ap­ whom have large accounts. This is indicated not plied to all size classes. only by the high incidence (especially in the Conversely, in both years since 1972, the New York-based group) of firms at which number of New York-based firms reporting average debit balances in 1968 approached or greater-than-average declines in margin account exceeded $20,000, but also by the greater debits has been twice as large as the number propensity of their customers to engage in ac­ located elsewhere, whereas only half as many tivities that generate other types of customer have been among those reporting less-than- balances. average decreases (or outright increases) in their In 1974, for instance, the ratio of aggregate margin account debits. Again, this contrasting short-account credits to margin account debits pattern has extended to comparisons between for the major branch systems was 8 per cent, firms of similar size in the two groups. whereas the aggregate ratio for other firms was This disparate trend in broad group totals can twice as high. Firms, where short credits are hardly be explained in terms of competition for high relative to debits in margin accounts, customers among brokerage firms. Regional and would appear to have attracted more than their local firms outside New York were the only share of customers who habitually maintain po­ category reporting a net increase in margin sitions in the market, shifting between the long credit between 1968 and 1974; if their experi­ and short side as their expectations dictate. At ence were attributable to competitive gains 33 firms—24 based in New York and 9 else­ within the industry, these gains would have had where—short credits equaled more than 20 per to be primarily at the expense of multiregional cent of the figure reported for margin account branch offices. But that group also has reported debt; collectively, these 33 firms, whose margin a consistently growing share of total margin account debits made up about 10 per cent of debits. Thus, the differing trends appear to re­ the 1974 total, reported more than one-third of flect divergent attitudes on the part of customers all short credits. patronizing each of the three categories of The relation of free credit balances to debit brokers and dealers. balances in margin accounts may also be re­ The annual reports themselves afford some garded as an indicator of customer commitment indication of differences in customer mix among to margin trading as an outlet for speculative individual reporting firms. In addition to show­ funds. It seems probable that customers who ing data for the three margin account categories were “out of the market” on the reporting date (general accounts, convertible bond accounts, but who had free credit balances in their margin and special subscription accounts), the reports accounts as a result of earlier sales were ex­ provide separate totals for other customer ac­ pecting to use those balances soon for stock counts—including short-account credits and free purchases. Sellers who did not intend to re-enter credit balances in margin accounts. From bench­ the market in the near future probably had mark data collected in 1968 on a number of settled their outstanding debt and had withdrawn accounts, it was possible to compute the average any remaining proceeds rather than maintaining sizes of accounts in that year. All of these can funds in non-interest-bearing accounts. be used to derive some information relative to Thus an above-average ratio of free credit to customer mix in the varying geographic coverage debit balances suggests that active customers categories. were in a transitional credit status on the report­ The group profiles emerging from these data ing date. At the 10 major branch systems, the suggest that the large, multiregional branch volume of such temporary credit balances was systems have attracted (or at least accepted) a only 3.4 per cent as large as margin account disproportionate share of small, routinely han­ debits; for other reporting firms in the aggregate, dled accounts, whereas a higher proportion of the ratio was 7.5 per cent, and nearly half of margin business at firms in the other coverage these free credit balances were concentrated at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Margin Credit 215 those firms in the group where individual ratios TABLE 3 were 10 per cent or higher. Margin credit at banks: Lender’s amount These and other elements in the profiles of outstanding, June 1974 individual reporting firms suggest that accounts of large and active traders have probably been Lender’s margin lodged to a disproportionate extent in firms credit class Number of Per cent of (millions of dollars) banks margin credit providing specialized services for their transac­ tions, and that the largest concentration of such Less than 1 ............................. 496 8.3 customers has been found at firms in the New 1 to 5 ......................................... 246 17.2 5 to 10 ....................................... 56 13.7 York-based category. During a 7-year period in 10 to 25 ................................... 58 29.9 25 or more ............................. 22 30.8 which the mystique of the stock market as a Total ............................... 878 100.0 source of quick capital gains was eroding, such customers may have shifted funds in substantial volume either into traditional alternatives (such stocks (those neither registered on a securities as puts and calls, commodities, and so forth) exchange nor included on the Federal Reserve or into the spectrum of real estate, oil drilling, list of OTC margin stocks) to which brokers cattle feeding, and other participations that pro­ were not permitted to assign any loan value. liferated over this period. For the banking industry as a whole, and even Such shifts may account for the persistently for most banks with substantial amounts of declining share of margin credit supplied by margin credit on their books, margin loans are New York-based firms as a group. No similar a relatively insignificant part of total business. trend was apparent among customers of firms On June 30, 1974, all margin credit at banks— based elsewhere—at least through the 1974 regulated and unregulated—was less than 0.5 reporting date. Whether it was because of their of 1 per cent of total bank deposits on that date. greater familiarity with stocks as a trading me­ Moreover, margin lending was concentrated at dium or because they had less ready access to a relatively small number of banks. Although other options, customers of firms outside the nearly 4,000 reported some margin loans, only New York area appear to have retained their 878 had amounts of $250,000 or more out­ stock market orientation and to have continued standing—the lower limit for detailed reporting. to seek additional leverage for their trading Of this group, 80 banks—each of which was activities. extending margin credit in amounts of $10 mil­ lion or more—accounted for more than threefifths of the outstanding total (Table 3). In M A R G IN C R E D IT E X T E N D E D contrast, 740 reporting banks extended less than $5 million each and were supplying little more B Y B A N K S than one-quarter of the total. In June 1974 the $3.3 billion of margin credit The actual and potential impact of bank lend­ that was extended by banks represented 37 per ing on the stock market, however, is not limited cent of all margin credit outstanding—the high­ to margin credit as defined here. Banks also est share for that group since universe reporting make other loans for the purpose of purchasing began. In 1972, a year of peak activity by or carrying securities. From 1970 through 1972, margin account customers at brokers and such loans were included by banks in their dealers, banks accounted for only 23 per cent annual security credit reports. In each of those of the total. However, barely one-third of the 3 years this residual category—other securities bank component—about $1 billion—was in the credit—exceeded $1.2 billion, which was sub­ form of regulated loans comparable to those that stantially more than the amount of regulated brokers were making to their margin customers. credit outstanding in the same years. Since The remaining $2 billion took the form of un­ unsecured loans to purchase or carry stock pre­ regulated loans to acquire or hold nonmargin sumably make up the bulk of this loan category, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin □ April 1975 many borrowers apparently obtained larger credit being extended by banks and more than sums on the basis of their general creditworth­ two-thirds of the unregulated portion. Loans to iness than the bank could have advanced on the purchase or carry other nonmargin stock on the current loan value of their purchases. same date amounted to only $660 million—little In principle, unsecured loans do not have the more than 20 per cent of all margin credit at same potential market impact as margin lending. banks. Inasmuch as stock does not serve as collateral Changes over time in aggregate amounts of for the loan, subsequent increases in its market margin credit extended by banks have not par­ price would not permit an increase in the amount alleled those shown earlier for margin account lent (pyramiding), nor can price declines be customers at brokers and dealers; nor has any reinforced by margin calls. In practice, this close correlation with the trend in stock prices divorce may be less absolute than it seems or other market developments been apparent. because falling asset values might affect the Between the 1972 and 1974 reporting dates, for borrower’s creditworthiness adversely and thus instance, stock prices fell 21 per cent, and lead to demands for full or partial repayment margin account customers at brokers reduced of a demand loan. Such loans would come their credit usage by 35 per cent; but over the within the legal scope of margin regulation only same period total extensions of margin credit if it could be shown that the credit was indirectly by banks increased by 17 per cent. Bank stock secured by stock. loans rose 45 per cent. Regulated credit was Prior to 1970, bank reporting of securities up a little less than 5 per cent, while credit on credit (excluding loans to brokers and dealers, nonmargin issues other than bank stocks de­ which have always been itemized separately) clined less than 4 per cent. Conversely, during combined into a single total three types of the sharp expansion from 1970 to 1972, when loans—regulated margin credit, unregulated the New York Stock Exchange price index rose margin credit, and other loans for the purpose 45 per cent and margin account credit doubled, of purchasing or carrying securities. The statis­ regulated loans at banks rose only 7 per cent. tics on securities credit that were collected for Brokerage customers have an incentive to the first time in 1970 included separate totals increase their buying power by borrowing if for these same loan categories. The initial tabu­ they expect stock prices (at least those of se­ lation revealed that only 28 per cent of the lected issues) to rise by amounts that will more reported total was regulated margin credit; 35 than repay the cost of borrowing. Whether or per cent was reported as unregulated credit to not they forecast correctly, it is reasonable to purchase or carry nonmargin stock, and about assume that their decisions are market-oriented 38 per cent fell into the residual category dis­ and are generally based on expectations of cussed earlier. near-term price appreciation. Shortly after these figures became available, The motives of bank customers are likely to an inquiry undertaken for other reasons revealed be more varied and complex. Some presumably the existence of widespread bank lending to are market-oriented, though traders with fre­ borrowers who were acquiring controlling in­ quent transactions that necessitate substitutions terests in other banks and pledging their shares of collateral would find it more practical to as collateral. These bank stock loans appeared finance such activities through a margin ac­ to constitute a large, though indeterminate, count. Others may be exercising stock options. proportion of all unregulated margin credit. Be­ Still other loans are for the purpose of acquiring cause the collateral typically represented major­ control of a corporation or participating in its ity ownership of issues that were closely held management. Such loans are essentially issueor seldom traded, such credit was unlikely to oriented rather than market-oriented. affect aggregate stock market prices or activity. Credit used for market-oriented trading tends Since 1972 annual reporting forms have pro­ to reinforce both upswings and downswings in vided a separate subtotal for these loans, and stock prices; credit obtained for issue-oriented on June 30, 1974, bank stock loans totaling $1.4 transactions may have substantial impact on billion constituted nearly half of all margin particular stock prices, but it is less likely to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Margin Credit 217 affect aggregate price trends. In the limiting most important single source of regulated mar­ case—purchase of control in a closely held gin credit, somewhat exceeding its 16 per cent corporation—market impact could be excluded share of total bank deposits. Its importance in by definition. this respect, however, has declined over the The wider range of collateral that banks can period covered by these reports from,28 per cent accept for margin loans also influences the po­ to less than 20 per cent of the total. New York tential market impact of such loans. Unregulated banks.were also an important source of “other” margin credit must, by definition, be directed unregulated margin credit (excluding bank stock toward stocks that fail to meet the criteria of loans), but they were exceeded in that category size, marketability, and breadth of ownership by lenders in both Chicago and Dallas. set for inclusion in the list of OTC margin Relative to their financial magnitude (6 per stocks. Lack of these characteristics tends to cent of total bank deposits), banks in Chicago limit not only the impact that price fluctuations were more heavily involved in the extension of might produce on the stock market at large, but margin credit than those in New York. The also the issue’s acceptability as security for Chicago banks were major suppliers of all three routine loans in which lenders rely on collateral types of credit and were the leading source of value rather than the borrower’s creditworth­ other unregulated loans—a category in which iness. they were responsible for 18 per cent of the national total. Four other East North Central cities with significant loan volumes were ex­ Geographic Distribution tending margin credit at a level about in line Margin lending by banks is widely distributed with their relative deposit magnitudes and with throughout the United States, but the geographic somewhat greater emphasis on regulated than pattern differs strikingly from that associated on unregulated loans. with more general measures of financial activity. Five SMSA’s in the East South Central region It also differs among the three margin loan were among the 44 selected metropolitan areas, categories. (See Table 4, p. 218.) primarily because of heavy loan volume in the In 1974, banks in each of five standard met­ bank stock category. ropolitan statistical areas (SMSA’s) reported By far the most striking concentration of margin credit aggregating more than $100 mil­ margin lending, both absolutely and relative to lion. Chicago (currently the most important financial resources, however, occurred in the source of margin credit at banks), New York, West Central regions—both North and South— and Houston were each supplying more than 10 where no less than 21 metropolitan areas ac­ per cent of the national total; Dallas added about counted for 65 per cent of all bank stock loans 9 per cent (down from its 1973 share) and and 39 per cent of other unregulated margin Minneapolis-St. Paul, another 4 per cent. In all, credit. Their 18 per cent collective contribution 44 SMSA’s were identified as significant sources to the regulated credit total was much smaller, of margin credit.3 but it too greatly exceeded the regions’ com­ Ten of these were in States on the Atlantic bined 10 per cent share of deposit totals. Coast. Except for New York, all were important Pacific Coast banks, on the other hand, did primarily as sources of regulated loans to pur­ relatively little margin lending. Reported vol­ chase or carry margin stocks. In this category ume for the two SMSA’s that qualified as sig­ they contributed 11 per cent of the $1 billion nificant margin credit sources was less than 4 outstanding, a proportion somewhat higher than per cent of the total and fell far short of their their 9 per cent collective share in total com­ 10 per cent share in bank deposits. Like many mercial bank deposits on the same date. East Coast banks, their primary role was as a As might be expected of the Nation’s major source of regulated margin credit. securities marketing center, New York was the Banks located outside of SMSA’s, although holding 18 per cent of all commercial bank deposits in June 1974, were not a major source 3Defined as either a total exceeding $15 million, or loans in any one category of $7.5 million or more. of margin credit. The 163 reporting banks, at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin □ April 1975 which such loans exceeded the $250,000 mini­ Central area also provide regulated margin mum, accounted for less than 5 per cent of the credit in amounts that substantially exceed their total. share of bank deposit totals; nevertheless, both In many of the 44 selected SMSA’s, reported categories of unregulated credit increase in im­ totals appear to have been determined largely portance, and together they account for more by loan demand and lending practices at one than half of total loan volume. At Chicago, the or two banks. In 17 of these areas, the largest principal financial and margin-lending center of lender accounted for half or more of all margin the region, other unregulated margin loans made credit reported; in only 6 areas did the largest up one-third of the 1974 total. lender’s share fall below 30 per cent. Even in A third regional pattern appears throughout Chicago, a single bank reported more than one- the other Central States where bank stock loans third of the $350 million total. Partly as a result constituted two-thirds of all margin credit in of such concentration, sharp year-over-year 1974. At banks in the northern tier of States, fluctuations in the loan totals reported by indi­ the remainder represented largely other unregu­ vidual SMSA’s are common, but the broad lated margin loans, but in the southern tier, it regional patterns have remained stable. was divided about equally between regulated On both the East and West Coasts, banks for margin credit and loans secured by other non­ the most part extend regulated credit on margin margin stock. Dallas-Ft. Worth banks departed stocks. Moving toward the middle of the from this pattern with a lower proportion of country, one finds that lenders in the East North bank stock loans and a greatly expanded abso­ TABLE 4 Geographic distribution of margin credit, 1974 (44 selected SMSA’s) Share of margin credit by loan category Share in Unregulated loans Location of deposit reporting banks total Regulated loans Other Bank stock nonmargin loans stock loans Atlantic New York ................................... 16.0 19.7 3.0 11.1 Other ............................................. 9.4 10.9 2.9 5.4 Subtotal ................................... 25.4 30.6 5.9 16.5 East North Central Chicago ....................................... 5.8 10.5 9.2 17.8 Other ............................................. 4.7 7.3 3.0 5.4 Subtotal ................................... 10.4 17.8 12. 1 23.2 East South Central ..................... 1.6 2.3 5.8 3.0 West North Central ..................... 4.0 5.0 22.0 12.9 West South Central Dallas ........................................... 1.5 3.6 11.0 1 1.4 Houston ....................................... 1.3 5.2 14.2 8.5 Other ............................................. 3.1 4.6 17.7 6.4 Subtotal ................................... 5.9 13.4 42.9 26.3 Pacific ................................................ 9.8 7.4 .8 3.5 44 SMSA’s, total ......................... 57.2 76.9 89.5 85.3 Other SMSA’s ............................... 25.0 16.5 8.2 1 1.2 Outside SMSA’s ........................... 17.9 6.9 2.3 3.5 Total ....................................... 100.0 100.0 100.0 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Margin Credit 219 lute and relative volume of other unregulated by bank stocks and 27 per cent of loans collat­ credit. eralized by other nonmargin stocks. Even The ratio of total margin credit outstanding among the largest lenders—those reporting at all U.S. banks in mid-1974 to total commer­ loans of $10 million or more in the regulated cial bank deposits (including those not reporting credit category—12 out of 17 banks had margin margin credit) was 0.0043—less than half of credit/total deposit ratios of less than 1 per cent. 1 per cent. On both coasts, ratios of SMSA This compared with 2 of 41 major sources for margin debt to deposits were even lower; bank stock loans and 2 of 11 major lenders in moreover, even major individual lenders (banks the other nonmargin stock category. reporting margin loans of $10 million or more) Data supplied by lenders provide no direct typically reported ratios of less than 1 per cent. information on borrower motivation, but the For the composite of the 21 SMSA’s in the West failure of changes in regulated credit to corre­ Central region, on the other hand, the ratio spond with broad market movements and the exceeded 1.5 per cent. For Houston the figure prevalence of large, eratic, year-over-year was 3.2 per cent, and for Dallas, 2.5 per cent. changes in amounts reported by individual A large majority of the reporting banks banks both support a presumption that a sub­ throughout the West Central region had margin stantial share of borrowing in this category is credit on their books in amounts exceeding 2 issue- rather than market-oriented. per cent of deposit totals, and many banks in Banks have reported margin loans secured by the 13 West South Central SMSA’s had ratios bank stock as a separate item for the past 3 of 5 per cent or more. years, and each year the total has expanded sharply. Although defined in terms of collateral for reporting convenience, the category is com­ C ategories of posed predominantly of loans that enable bor­ M argin L oans rowers to acquire a controlling interest in the Although regulated loans to purchase or carry bank whose stock is pledged. Differing State margin stock constituted less than one-third of regulations regarding the establishment of margin credit at banks in 1974 and have been branch banking have played a major role in declining in relative importance, such loans still accounting for the distinctive geographic distri­ constitute the most widespread form of margin bution of loans in this category. lending. As in earlier years, most respondents The fact that average loan size is large and reported at least some regulated credit on their that such loans are heavily concentrated at spe­ books; relatively small lenders—measured both cific banks helps to explain two other charac­ by deposit size (less than $50 million) and teristics of the bank stock loan profile: (1) the volume of loans in the category (less than $1 high number of large lenders (41 banks had million)—accounted for larger shares of regu­ loans of more than $10 million, and they were lated than of either bank stock or other unregu­ providing 57 per cent of all such credit); and lated credit. (2) the far greater concentration of loans in this Most regulated loans were made by banks category at banks with high loan/deposit ratios. where such credit was the principal form of Also characteristic of a loan category in which margin lending; but these loans—far more than typically large, issue-oriented loans predomi­ other loan types—were concentrated at banks nate have been the sharp year-over-year fluctu­ where margin lending was an unimportant ele­ ations in loan aggregates for individual banks ment in the lending bank’s over-all activities. and SMSA’s. A total of 394 respondents had margin cred­ When loans to purchase or carry nonmargin it/deposit ratios of less than 1 per cent. This stock are secured by issues other than bank group accounted for 57 per cent of all credit stock, no presumption can be formed concern­ to purchase or carry margin stocks; on the other ing borrower motivation. Since brokers can as­ hand, they had only 11 per cent of credit secured sign such issues no loan value, both market- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin □ April 1975 oriented and issue-oriented borrowers must seek extended less in reliance on the collateral’s bank credit. Even though the data supplied by market value than on the borrower’s credit­ lending banks afford no direct evidence of bor­ worthiness and business prospects. rower intent, they do supply indications that Lenders were also more likely to require nonmargin issues had more limited acceptability additional collateral for loans secured by non­ as collateral than margin stock. margin than by margin stock. Not only were Of the three margin credit categories, lending other nonmargin stock loans three times as on nonmargin issues other than bank stock was likely as regulated loans to be secured in part the least widespread. Nearly half of all reporting by other collateral (24 per cent compared with banks had no loans in this category and only 8 per cent), but also the distribution of these 112 reported loan volumes of more than $ 1 partly secured loans suggests that for a number million. For those that did engage in this type of lenders this requirement was a matter of of lending, it was less likely to be the lender’s policy. Eighty per cent of such loans were on major category of margin credit. The annual the books of 133 banks in which more than half reports show that margin lending at most banks of all other nonmargin stock loans had addi­ tends to be rather heavily concentrated in one tional security. Partly secured loans on margin or another of the three loan categories. On 581 stock, on the other hand, were more likely to reports in 1974, a single category accounted for occur because large lenders took additional se­ 75 per cent or more of the bank’s margin credit curity for an occasional loan. total. For regulated credit, more than 350 of Such comparisons suggest that, for most these undiversified lenders accounted for about banks in most parts of the country, willingness half of the category total, whereas 140 similarly to extend credit on nonmargin stock generally specialized lenders were extending 63 per cent depended to some extent on the borrower’s of all reported bank stock loans. relationship with the bank and on his credit­ Of other unregulated loans, however, only 78 worthiness, if not on the actual pledge of sup­ “specialists” were contributing barely 17 per plementary collateral. Where reluctance to rely cent of the total. Indeed, 55 per cent of all credit on the collateral value of nonmargin stock was in this category was extended by the 734 banks evident, it is reasonable to suppose that issueat which such loans were less than half of total oriented loans to existing customers made up margin lending; comparable shares for regulated a major share of other nonmargin stock credit. and bank stock loans were only 26 and 16 per In only a few metropolitan areas—and there cent, respectively. Banks that did accept other only for a limited number of larger lenders—did nonmargin stock collateral in significant volume lender profiles suggest that margin credit on often were also engaged heavily in the extension nonmargin stocks might have been routinely of bank stock loans—a lending pattern suggest­ available in quantity to market-oriented borrow­ ing that credit, in many cases, may have been ers. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

221 Changes in Bank Lending Practices, 1974 The Federal Reserve since 1964 has conducted mand was weaker than at the time of the pre­ quarterly surveys of changes in lending practices vious survey in November 1973, and nearly half among large commercial banks. Taken in Feb­ of the respondents expected commercial and ruary, May, August, and November of each industrial loan demand to moderate further. year, the surveys provide information on With loan demand weaker and the cost of funds changes in recent and prospective demand for declining, banks were in the process of lowering business loans, in price and nonprice terms of their prime rates at the time of the survey. In business lending, and in the banks’ disposition nonprice terms of lending to business, there to make other types of loans including mort­ were also some signs of easing for a small gages. This article continues the series of annual number of respondents, but for the most part reviews and summarizes the results of the sur­ the easing was balanced by a tightening of the veys taken at 124 banks in 1974. same terms at other institutions. Many respond­ In early 1974 interest rates were declining, ents commented that careful attention was being and the pace of economic activity had begun given to borrowers whose earnings might be to slow. The oil embargo and the prospect of adversely affected by inflation or by the shortage continued rapid inflation tempered expectations of petroleum. About one-fifth of the bankers of growth in bank credit. Later in the year, reported that they were more willing to make however, credit demands placed on banks bur­ consumer instalment loans and single-family geoned as businesses sought funds for price- mortgage loans than they had been 3 months inflated working and fixed capital needs. In earlier. addition, firms were attempting to stockpile in­ The moves toward ease in lending policies ventories in expectation of higher prices and/or were reversed by the banks when it became clear shortages. Conditions in the commercial paper that business loan demand was not weakening market in the spring and summer effectively in the spring and that Federal Reserve policy excluded all but the highest quality borrowers, had, after some easing in late 1973 and early and nonprime borrowers turned increasingly to 1974, returned to a more restrictive stance. the banks to finance their growing needs for Corporate borrowers sought massive financing external financing. Commercial banks, paying to purchase inventories, and with profits de­ record high rates for certificates of deposit and pressed in most industries, these borrowers Federal funds to meet the intense demand for turned to the commercial banks for short-term loans, adopted policies that were more and more financing. The commercial paper market—the restrictive in both price and nonprice terms of other principal source of short-term business lending. Little easing was seen until late in the credit—was characterized by heightened inves­ year when bank loan rates declined from their tor caution in early 1974, and rates on commer­ summer highs, but there was still no apparent cial paper began rising in late March when credit easing of nonprice terms of lending. demands began to grow. Between the February About one-third of the respondent banks in and May surveys, rates on prime short-term the February 1974 survey noted that loan de- commercial paper had risen more than l}h per­ centage points. Although the bank prime rate also rose, it lagged behind the rise in commer­ Note.—This article was prepared by Paul W. Boltz of the Board’s Division of Research and Statistics. cial paper rates, and prime borrowers sought the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin □ April 1975 less expensive funds at banks. Nonprime bor­ In response to the surging loan demand, there rowers were effectively priced out of the com­ was widespread tightening of both price and mercial paper market by widening interest rate nonprice terms of lending. Many of the re­ differentials among variously rated issues, and spondents commented that the high cost of ad­ by early summer relatively little nonprime paper ditional funds forced the adoption of very tight was being issued. lending policies. However, a sizable minority of In the May survey bankers reported policies banks expressed the desire to improve liquidity and expectations sharply different from those in and to reduce the ratio of loans to assets. February; more than 75 per cent reported Although 80 per cent of the respondents indi­ stronger loan demand than 3 months earlier and cated a tightening of price terms of lending— almost as many thought the heavy pace would reflecting a rise in the prime rate to 1 llA per continue or strengthen in the coming 3 months. cent—many of the respondents reported that QUARTERLY SURVEY—FEBRUARY 1974 Changes in bank lending practices at selected large banks: Policy on February 15, 1974, compared with policy 3 months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 124 (100.0) 15 (12.1) 68 (54.8) 40 (32.3) 1 (. 8 ) Anticipated in next 3 months.................... 124 (100.0) 13 (10.5) 55 (44.3) 56 (45.2) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 124 (100.0) (. 8 ) 2 (1.6) 51 (41.2) 68 (54.8) 2 ( 1 . 6 ) Compensating or supporting balances. , 124 (100.0) 6 (4.8) 114 (92.0) 4 (3.2) Standards of creditworthiness............... 124 (100.0) “(L 6 ) 16 (12.9) 106 (85.5) Maturity of term loans.............'............. 124 (100.0) 4 (3.2) 108 (87.1) 12 (9.7) Practice concerning review of credit lines or loan applications: Established customers............................. 124 (100.0) 2 (1.6) 115 (92.8) 7 (5.6) New customers.......................................... 124 (100.0) (3.2) 12 (9.7) 88 (71.0) 20 (16.1) Local service area customers................. 124 (100.0) 3 (2.4) 108 (87.1) 13 (10.5) Nonlocal service area customers........... 124 (100.0) "(.S) 14 (11.3) 96 (77.4) 13 (10.5) Factors relating to applicant:2 Value as depositor or source of collat­ Int e e r n a d l e b d u u si s n e e o ss f . . t . h ... e .. . l . o ... a .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 4 4 ( ( 1 1 0 0 0 0 . . 0 0 ) ) ( ( 3 3 . . 2 2 ) ) 20 1 (16 ( . . 1 8 ) ) 1 9 1 8 2 ( ( 9 7 0 9 . .1 4 ) ) 0 (5. . 6 6 ) ) Loans to independent finance companies:3 Terms and conditions: C E E In n s o t t m f e a o r b r p e l c s e i e t s n m h r s i a a e n t t n g e in t s n g o c e f h w o b a r o a r s r l g u a e l n p a d c p r . e . o g . . e r r . r . t e . i . q c n .. r u . g . e . i . r d b .. e i . a t . m . l . l a . i e . n n . n . e . c t . s . e s . . . . s . . . . 1 1 1 1 2 2 2 2 4 4 4 4 ( ( ( ( 1 1 1 1 0 0 0 0 0 0 0 0 . . . . 0 0 0 0 ) ) ) ) ( 1 . 6 ) 1 9 2 5 5 ( ( ( ( 4 4 9 7 . . . . 0 0 7 3 ) ) ) ) 1 1 9 7 1 1 0 7 4 7 ( ( ( ( 9 9 7 6 4 1 2 2 . . . . 4 6 9 1 ) ) ) ) 4 2 0 0 2 1 ( ( 3 1 (1 2 6 (. . . . 8 6 3 1 ) ) ) ) 2 ( 1 . 6 ) Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans: A T C S M i e o l n u l r n g m l o s t l t i u e f h - l m a o f e m a a r e m n r i m l s i y i l n o y t m r o s m t t o a g b o r l a u m t r g g s t e e i a g n n g a l e t o g e s a e l s l o n o e l a o s a s n . . a n . . . . s n . s . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 2 2 2 2 2 1 3 4 0 2 ( ( ( ( ( 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 . . . . . 0 0 0 0 0 ) ) ) ) ) ( ( ( 4 5 5 ( ( . . . . . 1 8 7 8 8 ) ) ) ) ) 1 1 9 3 3 5 4 ( (1 1 ( ( ( 4 7 2 1 0 . . . . . 1 4 4 5 8 ) ) ) ) ) 9 9 8 9 9 5 4 4 2 6 ( ( ( ( ( 7 7 6 7 7 6 7 9 7 7 . . . . . 7 2 5 4 1 ) ) ) ) ) 2 2 2 1 3 4 ( ( ( 1 1 1 ( ( 6 5 9 9 7 . . . . . 7 7 4 1 0 ) ) ) ) 1 (- 8 ) Participation loans with correspondent banks........................................................... 123 (100.0) 4 (3.3) 101 (82.1) 18 (14.6) Loans to brokers.......................................... 123 (100.0) (. 8 ) 9 (7.3) 105 (85.4) (6.5) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices, 1974 223 bank rates were still low relative to market rates after the May survey, though not at the extreme and, therefore, they stiffened compensating bal­ pace of the spring. In the survey taken in August ance requirements. The purpose of the loans and about half of the respondents were experiencing customer relationships of the loan applicants heavier demands for business loans than they also became more critical determinants of had in May, and a large majority of respondents whether loans were made, as the bankers at­ expected such demand to continue or to inten­ tempted to maintain the flow of credit to estab­ sify further. Even though loan demand swelled, lished customers. The severe tightening of loan banks were attempting to slow loan growth. No policies extended to financial business bor­ banks on the panel reported any easing in price rowers, consumers, and mortgage borrowers. or nonprice terms of lending to business, and In spite of tight bank lending policies, busi­ the process of tightening continued at a majority ness loans at banks continued to grow rapidly of the banks. The most common reasons given QUARTERLY SURVEY—MAY 1974 Changes in bank lending practices at selected large banks: Policy on May 15, 1974, compared with policy 3 months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............. 124 (100.0) 38 (30.6) 58 (46.8) 24 (19.4) 4 (3.2) Anticipated in next 3 months................... 124 (100.0) 4 (3.2) 27 (21.8) 58 (46.8) 35 (28.2) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions I C S M n t o a t a m e n t r u d p e r a s e i r t t n d y r s s a a o t t o f e in f s t g e c c r r h o m e a r d r l i s g t o u w e a p d o n p . r . s o . t . . r h . . . . t . . i i . . n . n . . . e . . g . . s . . . . s b . . . . . . . . a . . . . . . l . . . a . . . . . . . n . . . . . . . . c . . . . . . e . . . . . . s . . . . . . . . . . . . . . 1 1 1 1 2 2 2 2 4 4 4 4 ( ( ( ( 1 1 1 1 0 0 0 0 0 0 0 0 . . . .0 0 0 0 ) ) ) ) 2 2 6 1 7 6 0 1 ( ( ( 2 2 4 ( 1 8 1 8 . . . . 9 4 0 8 ) ) ) ) 4 4 2 5 8 0 5 0 ( ( ( ( 2 3 3 4 2 2 6 0 . . . . 3 3 3 6 ) ) ) ) 2 4 5 8 3 3 5 4 ( ( ( ( 4 1 3 6 2 8 6 7 . . . . 7 7 5 3 ) ) ) ) ( 1 ( ( . . . 8 6 8 ) ) ) Practice concerning review of credit lines or loan applications: Established customers................................ 124 ( 100 . 0 ) 3 (2.4) 52 (41.9) 69 (55.7) L N N o o e c w n a l l o c c s u e a s r l t v o s i m e c r e e v r a ic s r e . e . . a . a . . r c .. e u . a . s . . t . c . o . u . m . s .. t e . o .. r . m s .. . . e . .. . r . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2 2 3 3 4 ( ( (1 1 1 0 0 0 0 0 0 . . . 0 0 0 ) ) ) 4 4 1 4 7 ( ( 3 3 (3 7 3 . . . 3 9 3 ) ) ) 4 4 5 8 0 0 ( ( ( 4 3 3 0 9 2 . . . 3 0 5 ) ) ) 4 2 7 1 6 0 ( ( ( 2 3 5 1 3 6 . . . 4 9 0 ) ) ) ( ( ( . . .8 8 8 ) ) ) Factors relating to applicant:2 Value as depositor or source of collat­ eral business............................................ 124 (100.0) 32 (25.8) 47 (37.9) 45 (36.3) Intended use of the loan............................ 124 (100.0) 22 (17.7) 39 (31.5) 63 (50.8) Loans to independent finance companies:3 Terms and conditions: E I C E n n s o t t f m e a o r b r p e l c s e i e t s n m h r s i a a e n t t n g e in t s n g o c e f h o w a r b r a o s g l r u a e p n l d a p c . r . o e . g . r . e r t . r . e i . n . q c . g . u r .. e i . b . r d . a . e i . m . t l . a . l . e n i .. n n . c . t e . e . s . s s . . . . . . . . . . 1 1 1 1 2 2 2 2 4 4 4 4 ( ( ( (1 1 1 1 0 0 0 0 0 0 0 0 . . . . 0 0 0 0 ) ) ) ) 3 3 1 1 1 1 6 8 ( ( ( 2 1 2 (8 9 4 5 . . . . 9 0 0 5 ) ) ) ) 2 2 2 3 4 9 9 5 ( ( ( ( 3 2 1 2 1 3 9 0 . . . . 5 4 2 4 ) ) ) ) 4 8 6 7 8 8 9 7 ( ( ( ( 5 6 3 7 4 2 8 1 . . . . 7 8 1 7 ) ) ) ) (. 8 ) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to business.............................. 124 ( 100 . 0 ) 15 ( 12 . 1 ) 46 (37.1) 63 (50.8) C S A M i o l n u l n g l o s t l i t e u f h - m a f e m a r e m r i m l i y i l n o y m r s m t t o a g o r l a m t r g g t e e g a n a g l t o g e a e l l o n o l a o a s n . a n .. s n s . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 2 2 2 1 3 0 0 ( ( ( ( 1 1 1 1 0 0 0 0 0 0 0 0. . . . 0 0 0 0 ) ) ) ) 2 2 21 5 6 5 ( ( ( 2 2 1 (4 0 1 7 . . . . 1 5 5 8 ) ) ) ) 2 4 3 1 8 4 0 8 ( ( ( ( 1 2 2 3 3 4 4 6 . . . . 3 8 7 6 ) ) ) ) 6 9 6 55 7 5 4 ( ( ( ( 4 5 5 7 5 2 5 7 . . . . 9 8 9 2 ) ) ) ) 5 1 (4 ( . - 1 8 ) ) Participation loans with correspondent banks..................................................... 124 (100.0) 12 (9.7) 27 ( 21 . 8 ) 83 (66.9) 2 ( 1 . 6 ) Loans to brokers........................................ 123 (100.0) 20 (16.3) 25 (20.3) 78 (63.4) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin □ April 1975 for the sharp credit stringency were concern recede from this peak until October—after the over bank liquidity and apprehension about intense demand for short-term business credit economic conditions, but a few bankers indi­ at banks had abated. The effects of a turn toward cated that the high rates in money markets were ease in monetary policy at midyear reduced causing them to curb loan growth. Most bankers pressures in financial markets generally, and reported higher compensating balance require­ many businesses were restructuring their bal­ ments and more strict evaluation of the credit­ ance sheets toward long-term debt at this time, worthiness of loan applicants, and most were lessening the need for short-term borrowing at less willing to make term loans to businesses banks. In the November survey one-third of the or to make real estate loans. respondents reported that loan demand from The prime rate, which had reached 12 per businesses was not so strong as in August, and cent at the time of the August survey, did not a slightly higher proportion of the bank officers QUARTERLY SURVEY—AUGUST 1974 Changes in bank lending practices at selected large banks; Policy on August 15, 1974, compared with policy 3 months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 124 (100.0) 16 (12.9) 47 (37.9) 55 (44.4) 6 (4.8) Anticipated in next 3 months.................... 124 (100.0) 2 ( 1 . 6 ) 41 (33.1) 63 (50.8) 18 (14.5) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: I C S M n t o a t a m e n t r u d p e r a s e i r t t n y d r s s a a o t t o f e in f s t g e c c r r h o m e a r d r l i s g o t u w e a p d o n p . r s . o . t . . r h . . . . t . . i i . . n n . . . . e . . g . . s . . . . s b . . . . . . . . a . . . . . . l . . . a . . . . . . n . . . . . . . . . c . . . . . . e . . . . . . s . . . . 1 1 1 1 2 2 2 2 4 4 4 4 ( ( ( ( 1 1 1 1 0 0 0 0 0 0 0 0. . . . 0 0 0 0 ) ) ) ) 4 2 3 3 6 0 7 6 ( ( ( ( 2 2 3 2 1 2 9 9 . . . . 3 8 0 0 ) ) ) ) 4 4 3 5 8 4 2 9 ( ( ( ( 4 3 3 3 7 5 0 3 . . . . 5 9 6 6 ) ) ) ) 4 4 2 5 9 0 9 6 ( ( ( ( 3 3 4 2 2 9 5 3 . . . . 2 6 1 4 ) ) ) ) Practice concerning review of credit lines or loan applications: L E N N o s e o t c w n a a l b l o c l c i s u s a e s h r l t e v o s d i m e c r e c e v u r a i s c s r t e . e . o . a . a m . . r c . e . e u . a r .. s s . t . c . . o . . u . . m . . . s . . . t . . e . o . . . r . m . . . s . . . . . . e . . . . . . r . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 2 2 2 3 3 3 4 ( ( ( (1 1 1 1 0 0 0 0 0 0 0 0 . . . . 0 0 0 0 ) ) ) ) 4 6 1 1 9 5 3 4 ( ( ( ( 3 1 5 11 0 2 9 - . . . 5 8 8 4 ) ) ) ) 5 3 5 3 3 6 4 0 ( ( ( ( 2 2 4 4 6 7 5 0 . . . . 8 6 2 7 ) ) ) ) 2 4 5 5 5 0 5 9 ( ( ( ( 4 3 4 2 4 2 0 7 . . . . 4 3 6 9 ) ) ) ) Factors relating to applicant:2 Value as depositor or source of collat­ eral business........................................... 124 (100.0) 45 (36.3) 41 (33.1) 38 (30.6) Intended use of the loan......................... 124 (100.0) 33 (26.6) 46 (37.1) 45 (36.3) Loans to independent finance companies:3 Terms and conditions: I E C n n o t f m e o r r p e c s e t e n m r s a a e t t n e in t s g o c f h o b a r a r s l g u a e n p d p c . e . o . . r r .. t e . i . q n ... g u .. i . b r .. e . a . m . l . a .. e n .. n . c . t . e . s . s . . . . 1 1 12 2 2 4 4 4 ( ( ( 1 1 1 0 0 0 0 0 0. . . 0 0 0 ) ) ) 2 1 1 6 7 7 ( ( ( 2 1 1 1 3 3 . . . 7 7 0 ) ) ) 2 4 3 6 0 4 ( ( ( 2 3 2 2 1 7 . . . 3 4 0 ) ) ) 8 7 5 1 8 3 ( ( ( 6 4 5 5 6 8 . . . 3 7 9 ) ) ) Establishing new or larger credit lines.. 123 ( 100 . 0 ) 63 (51.2) 23 (18.7) 37 (30.1) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans: T A C S M i e l o n u l r n g l m o t s l i t e u f h - l a m o f e m a a r e m n r i m l s i y i l n o y t m r o s m t t o a g b r o l a u m t r g g s t e e i g a n n a g l t e o e g s a e l s l o n o e l a o s a s n . . a n . . . . s n . s . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 12 2 1 2 2 1 3 8 4 0 ( ( ( ( ( 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 . . . . . 0 0 0 0 0 ) ) ) ) ) 4 3 3 5 7 6 9 0 8 ( ( ( ( 3 2 3 4 (6 9 9 2 1 . . . . . 8 0 5 5 3 ) ) ) ) ) 4 2 2 3 3 1 3 7 2 2 ( ( ( ( ( 2 1 3 2 2 2 9 3 6 6 . . . . . 5 1 4 7 0 ) ) ) ) ) 4 4 4 8 3 8 8 7 9 6 ( ( ( ( ( 6 3 4 3 4 9 2 0 7 0 . . . . . 7 9 3 9 0 ) ) ) ) ) 0 ( . . 6 8 ) ) Participation loans with correspondent banks........................................................... 124 (100.0) 16 (12.9) 38 (30.6) 70 (56.5) Loans to brokers.......................................... 124 (100.0) 20 (16.1) 32 (25.8) 72 (58.1) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. 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Changes in Bank Lending Practices, 1974 225 thought loan demand would be weaker in the had eased moderately, but there was further coming 3 months. But after three consecutive tightening in nonprice terms of lending to busi­ quarters of very rapid growth in business loans, ness at many of the respondent banks. Almost moves toward easier lending policies in the half of the banks stiffened their requirements November survey were modest. Several for creditworthiness of borrowers, apparently respondents reported they were trying to lower because of the worsening economic conditions. loan/deposit ratios and to improve the quality Moreover, the November survey showed almost of their loan portfolios. About one-third of the no easing in the respondents’ disposition to respondents indicated that interest rate policies make consumer loans or mortgages. □ QUARTERLY SURVEY—NOVEMBER 1974 Changes in bank lending practices at selected large banks: Policy on November 15,1974, compared with policy 3 months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 124 (100.0) 1 ( 0 . 8 ) 16 (12.9) 66 (53.2) 41 (33.1) Anticipated in next 3 months....................... 124 (100.0) 6 (6.5) 63 (50.8) 53 (42.7) Total Much firmer Moderately Essentially Moderately Much policy firmer unchanged easier easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged................................. 124 (100.0) 4 (3.2) 21 (16.9) 57 (46.0) 42 (33.9) Compensating or supporting balances.. 124 (100.0) 7 (5.6) 33 (26.6) 84 (67.8) Standards of creditworthiness................. 124 (100.0) 19 (15.3) 35 (28.2) 70 (56.5) Maturity of term loans.............................. 124 (100.0) 9 (7.3) 26 ( 21 . 0 ) (70.9) " 1 ......(-’ 8 ) Practice concerning review of credit lines or loan applications : E N s e t w ab c li u s s h t e o d m c e u r s s t .. o .. m ... e .. r .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 1 2 2 4 4 ( (1 1 0 00 0. . 0 0) ) 3 2 2 (2 ( 5 1 . .8 6 ) ) 2 3 8 0 ( ( 2 2 2 4. . 2 6 ) ) 8 55 7 ( ( 7 4 0 4 . .3 2 ) ) 9 5 ( ( 7 4 . . 3 0 ) ) Local service area customers.............. 123 (100.0) 3 (2.4) 23 (18.7) 91 (74.0) 6 (4.9) Nonlocal service area customers.... 123 (100.0) 24 (19.5) 31 (25.2) 63 (51.2) 5 (4.1) Factors relating to applicant:2 Value as depositor or source of collat­ eral business........................................ 124 (100.0) 15 (12.1) 28 (22.6) 81 (65.3) Intended use of the loan....................... 124 (100.0) 24 (19.4) 37 (29.8) 61 (49.2) 2 ( 1 . 6 ) Loans to independent finance companies:3 Terms and conditions: I C n o t m er p es e t n r s a a t t e in s g c h o a r r s g u e p d p .. o .. r .. t . i . n .. g ... . b .. a ... l . a .. n ... c .. e .. s . . .. . 1 1 2 2 4 4 ( (1 10 0 0 0 . . 0 0 ) ) 2 6 ( ( 4 1 . . 8 6 ) ) 1 1 6 5 ( ( 1 1 2 2 . .9 1 ) ) 1 8 03 5 ( ( 6 8 8 3 . .1 6 ) ) 21 (16.9) E E n st f a o b r l c i e s m hi e n n g t n o e f w b a o l r a n la c r e g e r r e q c u re ir d e i m t l e in n e ts s . . . . . 1 12 2 4 4 ( ( 1 1 0 0 0 0 . . 0 0 ) ) 2 1 6 3 ( ( 2 1 1 0 . .5 0 ) ) 2 2 7 2 ( ( 2 1 1 7 . .7 8 ) ) 8 68 9 ( ( 5 7 4 1 . . 8 8) ) (2.4) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans: T C S A M i e o l n u l r n g m l o s t l t i e u f h - l m a f o e m a a r e m n r i m l s i y i l n o y t m o r s m t t o a g b o r l a m u t r g g t s e e g a i n n a g l t o e g e a s l e l o s n o l e a o a s s n . a n . . . . s n . s . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 2 2 2 2 2 1 3 4 2 0 ( ( ( ( ( 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 . . . . .0 0 0 0 0 ) ) ) ) ) 2 2 1 1 3 6 9 5 5 ( ( ( ( 2 1 1 1 (4 1 8 5 2 . . . . . 1 7 9 7 1 ) ) ) ) ) 2 2 2 2 2 1 6 0 0 0 ( ( ( ( ( 2 1 1 1 1 1 6 6 6 6 . . . . . 3 7 3 5 9 ) ) ) ) ) 9 7 7 8 8 3 3 4 6 0 ( ( ( ( ( 6 6 6 7 5 1 9 5 9 6 . . . . . 6 4 5 8 1 ) ) ) ) ) 4 2 2 ( ( ( 1 3 1 . . . 7 3 6 ) ) ) (. 8 ) Participation loans with correspondent Lo b a a n n s k t s o . .. b .. r .. o .. k ... e .. r .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 12 2 3 3 ( ( 1 1 0 0 0 0 . . 0 0 ) ) 1 1 0 0 ( ( 8 8. . 1 1 ) ) 1 16 4 ( ( 1 1 3 1 . . 0 4 ) ) 9 95 0 ( ( 7 7 7 3 . . 3 2 ) ) ( (7 1 . .3 6 ) ) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. 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226 Loan Commitments at Selected Large Commercial Banks N ew Statistical Series With this article, the Federal Reserve begins arrangements have allowed banks to enlarge publication of a new statistical series on loan their income from fees and also to form a closer commitments at selected large commercial association with prospective borrowers, they banks. The data, reported monthly, cover com­ have restricted the flexibility of banks to grant mitments at 138 large banks—122 member or refuse new loans. Nevertheless, by increasing banks and 16 nonmember banks—as of the last their reliance on interest-sensitive liabilities business day of each month. A monthly statisti­ such as large certificates of deposit or Federal cal release will be available beginning in May funds, large banks have, for the most part, been 1975. able to meet their loan commitments even dur­ The volume and composition of the loan ing periods of credit restraint. commitments of commercial banks have had a To gain a better understanding of commit­ growing impact on the flow of credit in the ments and of their implications for monetary economy. While formal commitments have policy, the Federal Reserve has experimented always been a part of commercial banking, the with loan commitment surveys. In such surveys size of such commitments relative to outstand­ there have been two recurring problems: (1) the ing loans has been expanding in recent years, variation among banks in the definition of com­ as borrowers have sought to confirm their mitments and (2) the degree of formalization sources of short-term financing. Although such of individual commitments. The definition of TABLE 1 Unused commitments at selected large banks In billions of dollars To commercial and industrial firms Total To nonbank For real Formalized agreements Month-end unused financial estate commitments1 Total Confirmed institutions loans lines5 Term2 Revolving--* Other4 1975—January ................ 140.5 105.0 6.2 27.9 4.4 66.5 29.6 5.9 February ............ 142.3 105.6 6.1 28.7 4.4 66.4 31.0 5.7 1 Unused commitments are the amounts still available for known to the customer and are characterized by detailed formal lending under official promises to lend that are expressly agreements specifying the terms and conditions under which conveyed to the bank’s customers orally or in writing, usually a loan is to be made. in the form of a formally executed agreement signed by one 5Confirmed lines of credit represent general expressions of of the bank’s officers. willingness to lend, other than for term loans or revolving 2 Commitments for term loans are those for loans with an credits, that are made known to the customer but are not original maturity of more than 1 year. characterized by detailed formal agreements specifying the 3 Revolving credits are commitment agreements whereby the terms and conditions under which a loan is to be made. borrower may draw down and repay loans at will with no Note.—Included in this series are 138 weekly reporting repayment penalty and under which the commitment rebounds banks; these banks account for approximately 85 per cent of by an equal amount after a takedown has been repaid. commercial and industrial loans, 95 per cent of nonbank 4Other commitments are expressions of willingness to lend, financial loans, and 75 per cent of real estate loans of all weekly other than for term loans and revolving credits, that are made reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Statistical Series 227 TABLE 2 Outstanding loans made under commitments at selected large banks In billions of dollars To commercial and industrial firms Total loans To nonbank Real Month-end made under Formalized agreements financial estate commitments1 Confirmed institutions loans Total lines5 Term2 Revolving3 Other4 1975-January .................. 136.9 93.8 27.0 28.8 6.6 31.5 22.4 20.8 February ................ 134.7 91.5 26.8 27.7 6.5 30.5 22.6 20.6 1 Loans made under commitments are all outstanding loans, and are characterized by detailed formal agreements specifying less repayments of principal, made under commitments cur­ the terms and conditions under which a loan is to be made. rently or previously in force. 5Loans made under confirmed lines of credit are loans made 2 Term loans are loans with an original maturity of more under general expressions of willingness to lend, other than than 1 year. for term loans or revolving credits, that are made known to 3 Loans made under revolving credits are loans under agree­ the customer but are not characterized by detailed formal ments whereby the borrower may draw down and repay loans agreements specifying the terms and conditions under which at will with no repayment penalty and under which the com­ a loan is to be made. mitment rebounds by an equal amount after a takedown has Note.—Included in this series are 138 weekly reporting been repaid. banks; these banks account for approximately 85 per cent of 4 Loans made under other commitments are loans made under all commercial and industrial loans, 95 per cent of all nonbank expressions of willingness to lend, other than for term loans financial loans, and 75 per cent of all real estate loans of all and revolving credits, that are made known to the customer weekly reporting banks. commitments being used in the monthly loan the bank anticipates will result in loans at do­ commitment survey has been constructed to mestic offices of the banks and for loans made reflect different banking practices, while being under commitments at domestic offices of the sufficiently narrow to permit valid comparisons banks. over time. Commitments are defined as official Coverage is further limited to certain types promises to lend that are expressly conveyed of domestic commitments and loans. The three to the bank’s customers either orally or in writ­ principal categories of commitments and loans ing. A written commitment is usually a formally are those to commercial and industrial firms, executed agreement or letter signed by one of to nonbank financial institutions (insurance the bank’s officers. companies, finance companies, savings and loan The data collected in the survey are for un­ associations, and so forth), and for real estate used commitments, which are the amounts still loans. These three groups of loans account for available for lending under commitment ar­ about three-fourths of the outstanding loans at rangements in effect on the last day of the the reporting banks. month; that is, the remaining portion of a par­ The results of the surveys taken at the end tially used commitment is reported as an unused of January and February 1975 are shown in commitment. Also collected are the amounts of Tables 1 and 2; the data are not seasonally outstanding loans made under commitments; adjusted. The survey form is reproduced on pp. such amounts cover all loans (less repayments 228 and 229. of principal) made under commitments currently To be included on the mailing list for this or previously in force. However, not all out­ statistical release, address requests to Publica­ standing commitments and loans made under tions Services, Division of Administrative commitments are reported in the survey. Data Services, Board of Governors of the Federal are requested only for unused commitments that Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin □ April 1975 CONFIDENTIAL F R 18a OMB No. 55-R0246 Approval Expires 12/31/75 MONTHLY SURVEY OF LOAN COMMITMENTS As of last day,____________________________________________________ (month, year) In order to reduce reporting burden, banks may elect to include only those single commitments that are greater than $100,000. Otherwise, commitments should be reported without any limitation as to individual size. The $100,000 cut-off, if adopted, should apply uniformly to all domestic offices of the bank. Please check which characterizes reporting at your bank. □ (a) Single commitments only over $100,000 (b) No size limitation □ (For further instructions and complete definitions, see reverse side) DOMESTIC OFFICES OF BANK ONLY COMMITMENTS, INCLUDING CONFIRMED LINES UNUSED USED TOTAL Mils. Thous. Mils. Thous. Mils. Thous. FOR COMMERCIAL AND INDUSTRIAL LOANS (exclude mortgages and loans for purchasing and carrying securities) Commitments for term loans ___________________________________ Commitments for revolving credits . Sum of commitments for term loans and revolving credits . Confirmed lines of credit _______________________________ Other commitments for commercial and industrial loans Total FOR LOANS TO NONBANK FINANCIAL INSTITUTIONS (exclude loans for purchasing and carrying securities and mortgages; include loans for mortgage warehousing)________ FOR MORTGAGES (include mortgages to commercial and industrial firms, to nonbank financial institutions, and to all other units)____ Signed - Title. Name and location of bank. PLEASE RETURN THE COMPLETED QUESTIONNAIRE TO THE FEDERAL RESERVE BANK NOT LATER THAN TEN WORKING DAYS AFTER THE LAST DAY OF MONTH Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

New Statistical Series 229 INSTRUCTIONS This survey should cover alt commitments of the types In some cases, in attempting to classify a firm as "com­ indicated made at any domestic office of the reporting bank, mercial and industrial*," "nonbank financial," or other (not to even if these commitments are taken down at another domestic be reported), there may be ambiguity because the firm is en­ office. Include commitments made by the bank's international gaged in diverse activities. Under these conditions, classify the division if they are made at domestic offices, are of the types firm on the basis of which line of business produces the largest indicated on the face of this form, and will result in loans at gross sales or revenues. domestic offices. Exclude commitments originating at the bank's foreign offices, even if the commitments require head On occasion, a commitment covers several affiliated office approval. Do not omit commitments merely because-they corporations. For example, if a parent is classified as "com­ are not legally binding or require no commitment fee. mercial and industrial" and one or more subsidiaries is classi­ fied as "nonbank financial," divide the total commitment to the Promises to issue letters of credit or to execute accept­ affiliated group in proportion to individual limits. ances do not constitute commitments in the sense used in this survey. (See the definition of "commitments" below.) DEFINITIONS Commitments are official promises to lend that are Confirmed lines of credit are general expressions of expressly conveyed, orally or in writing, to the bank's willingness to lend, other than for term loans and revolving customers. Such commitments are usually in the form of a credits, that are made known to the customer but are not formally executed agreement or a letter signed by one of the characterized by detailed formal agreements specifying the bank's officers. Oral commitments made by bank officers to terms and conditions under which a loan is to be made. Such customers are usually accompanied by some documentation lines are sometimes referred to as "advised lines" or "dis­ for the bank's own records such as a notation in the customer's closed lines." credit file. Exclude authorizations (internal guidance lines) where the customer is not informed of the amount. Exclude Other commitments for C&l loans are expressions of cases such as those where loan funds are temporarily unavail­ willingness to lend, other than for term loans and revolving able pending loan committee approval. credits, that are made known to the customer and are character­ ized by detailed formal agreements specifying the terms and Unused commitments are the amounts still available conditions under which a loan is to be made. under commitment arrangements, but not borrowed, as of the indicated date. Exclude any takedowns, expirations, and Loans to nonbank financial institutions are the loans cancellations. specified in the Call Report instructions for Schedule A, item 2(b), "loans to other financial institutions," and in the instruc­ Used commitments are all loans, less repayments of tions for the Weekly Condition Report, item 2(d). These are principal, made under commitments currently or previously loans (other than mortgages, Federal funds sales, or loans for in force. purchasing and carrying securities) to insurance companies, finance companies, factors, mutual savings banks, credit unions, Total commitments are all used plus unused commitments. savings and loans, federal credit agencies--e.g., Federal Home Loan Banks, Federal Land Banks--and other private nonbank C&l (commercial and industrial) loans correspond to financial institutions, except brokers and dealers. Include loans those loans Specified in the Call Report instructions for Sched­ for mortgage warehousing, but not mortgage loans themselves. ule A, item 5 and the instructions for the Weekly Condition Report, item 2(h). These loans are to nonfinancial, nonfarm Mortgage loans are those specified in the Call Report businesses. Include loans to finance construction in process not instructions for Schedule A, item 1, real estate loans, and in secured by a mortgage or other lien on real estate. Exclude the instructions for the Weekly Condition Report, item 2(a). mortgages and loans for the purpose of purchasing and carrying Include all loans secured primarily by mortgages, deeds of trust, securities. land contracts, or other liens on real estate. Exclude loans to finance construction in process if not secured by a mortgage or C&l term loans are all C&l loans, except revolving credits, other lien on real estate. with original maturities longer than one year. C&l revolving credits are C&l loans arising from formal agreements under which the borrower may draw down and repay loans at will with no prepayment penalty and under which the commitment rebounds by an equal amount after a takedown has been repaid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JANUARY 20-21, 19751 1. Domestic policy directive Preliminary estimates of the Commerce Department indicated that real output of goods and services (real gross national product) had fallen at an annual rate of about 9 per cent in the fourth quarter of 1974, after having declined at an average rate of about 3.5 per cent over the first three quarters of the year. Staff projections suggested that real economic activity would continue to recede in the first half of 1975; that the rate of increase in prices, while still rapid, would moderate; and that nominal GNP would continue to grow at a slow pace. In December retail sales had risen somewhat, according to the advance estimate, after having declined considerably in the preced­ ing 3 months. The index of industrial production fell sharply further in December; curtailments in output were large and widespread in part because of efforts to liquidate inventories. Employment cutbacks also were widespread, especially among manufacturing establishments. The unemployment rate rose from 6.5 to 7.1 per cent, and the number of persons with only part-time jobs continued to increase. Average wholesale prices of industrial commodities were un­ changed in December—after having risen much less rapidly from August to November than earlier in the year—as declines in a number of basic commodities offset increases in machinery and other more highly fabricated products. Wholesale prices of farm and food products declined, following 2 months of substantial increases. During the final 3 months of 1974 the advance in the index of average hourly earnings for private nonfarm production workers was considerably less rapid than in the two previous quarters. In his State of the Union message on January 15, the President lrrhis meeting began on the afternoon of January 20 and continued on the following day. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 231 set forth a program of fiscal stimulus, which included cash refunds of 1974 personal income taxes in two equal instalments—in May and September of this year—and an increase for 1 year in the investment tax credit for businesses and farmers. The proposed tax reductions were estimated to amount to $12 billion for individ­ uals and $4 billion for businesses and farmers. In addition, the President proposed excise taxes and import fees on petroleum and excise taxes on natural gas to reduce the use of these energy sources; removal of price controls from domestic crude oil to encourage production; and a tax to recover the windfall profits resulting from the decontrol of prices. The taxes and fees would yield $30 billion in Federal revenues, on an annual basis, which would be returned to the economy through a permanent reduction in taxes on corporate and individual incomes; through payments of up to $80 to low-income individuals, including some who would pay no Federal income taxes; and through certain other measures. Staff projections for the first half of 1975 in essence were similar to those of 5 weeks earlier, although the declines now expected in real GNP were larger for the current quarter and smaller for the second quarter. The President’s fiscal program, if enacted, was expected to improve the prospects for an upturn in economic activity in the second half of the year but to have little impact before then, apart from adding to disposable personal income toward the end of the second quarter. Accordingly, it was still anticipated that the rise in personal consumption expenditures would be little, if any, greater than the increase in prices; that the expansion in business fixed investment outlays would fall short of the increase in prices; that residential construction activity would decline further in the current quarter and then turn up; and that the rate of business inventory investment would fall substantially in the first quarter and then shift to liquidation in the next. The exchange rate for the dollar against leading foreign curren­ cies—which had been declining since early September—fell some­ what further between mid-December and mid-January, in associa­ tion with decreases in interest rates in this country relative to those in other major countries. The U.S. foreign trade deficit—after narrowing in September and October—remained moderate in No­ vember, as both exports and imports rose substantially. Oil-export­ ing countries continued to add to their investments in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin □ April 1975 States, and large inflows and outflows of bank-reported private capital were roughly offsetting. At U.S. commercial banks total loans and investments declined sharply from the end of November to the end of December, reflecting in large part decreases in outstanding loans to businesses and to nonbank financial institutions; banks reduced their over-all holdings of securities slightly. In contrast with immediately pre­ ceding months, businesses reduced their borrowings in the com­ mercial paper market as well as at banks, in part as a result of efforts to fund short-term debts. In early January most banks reduced the prime rate applicable to large corporations in two steps from IOV2 per cent to 10 per cent, but reductions in the rate continued to lag behind declines in commercial paper rates. Growth in the narrowly defined money stock (Mx)2 slowed to an annual rate of about 2 per cent in December. Growth in the more broadly defined money stock (M2)3 also slowed as net inflows to banks of time and savings deposits other than money market certificates of deposit (CD’s) declined sharply; however, net inflows of deposits to nonbank thrift institutions continued to improve. Over the fourth quarter as a whole, Mx and M2 grew at rates of 4 and nearly 7 per cent, respectively.4 Weekly data indicated that had declined somewhat in early January but that inflows to banks of consumer-type time and savings deposits had picked up. On January 20 the Board of Governors announced a reduction in reserve requirements on the net demand deposits of member commercial banks. The action—which would release about $1.1 billion in reserves to the banking system in the week beginning February 13—was designed to permit further gradual improvement in bank liquidity and to facilitate moderate growth in the monetary aggregates. System open market operations since the December 16-17 meet­ ing had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with somewhat more rapid growth in monetary aggregates over the months ahead 2Private demand deposits plus currency in circulation. 3 Mi plus commercial bank time and savings deposits other than money market CDs. 4The growth rates cited for the quarter are calculated on the basis of the dailyaverage level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 233 than had occurred in recent months, while taking account of developments in domestic and international financial markets. Data that had become available in the weeks immediately after the December meeting suggested that in the December-January period the aggregates would grow at rates near or below the lower limits of the ranges of tolerance that had been specified by the Committee. Consequently, System operations persistently had been directed toward further easing in bank reserve and money market conditions. In the statement week ending January 8, the Federal funds rate had averaged slightly below 1 3A per cent—down from about 8% per cent at the time of the December meeting. The data that became available on January 9 indicated still greater weakness in the aggregates; it appeared that and M2 would grow in the December-January period at rates well below the lower limits of the specified ranges of tolerance. The System currently was conducting reserve-supplying operations thought to be consist­ ent with a weekly average funds rate at about the IV2 per cent lower limit of its specified range of tolerance. Against the back­ ground of those developments and to give the Manager greater flexibility, Chairman Burns recommended on January 9 that the lower limit of the funds rate constraint be reduced to 7 Vs per cent for the period remaining until the next Committee meeting. The members of the Committee concurred, and over most of that period the funds rate was slightly above 7 per cent. Short-term market interest rates declined substantially further over the inter-meeting period, in response to the weakening in business demands for short-term credit, to System open market operations to ease bank reserve and money market conditions, and to a reduction in Federal Reserve discount rates. Discount rate reductions of V2 of a percentage point, to 1XA per cent, at six Reserve Banks were announced on January 3, to be effective on January 6; shortly thereafter, rates were reduced at the remaining six Banks. Over the inter-meeting period the market rate on 3-month Treasury bills declined nearly three-fourths of a percentage point, to about 6.40 per cent, and rates on private short-term instruments declined considerably more. Yields on longer-term bonds in general changed little in the inter-meeting period—despite the declines in short-term rates—be­ cause corporate financing in the capital market had been and was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Federal Reserve Bulletin □ April 1975 expected to remain substantial and prospective Treasury financings were large. The volume of public offerings of corporate bonds in December was exceptionally heavy for that season, and a near-rec­ ord volume was in prospect for January. In the home mortgage market contract interest rates on new commitments for conventional mortgages in the primary market and yields on commitments in the secondary market for Federally underwritten mortgages declined further from early December to mid-January. The Treasury was expected to announce shortly the terms of its mid-February refunding. Of the maturing issues, $3.55 billion were held by the public. The Committee decided that the economic situation and outlook called for more rapid growth in monetary aggregates over the months ahead than had occurred in recent months. A staff analysis suggested that—although Mx was not expanding in January—the demand for money would pick up in February, in part as a result of the lagged effects of earlier declines in interest rates. Never­ theless, it appeared likely that if were to grow at a rate consistent with the Committee’s longer-run objectives for the monetary ag­ gregates, money market conditions would have to ease further in the period immediately ahead. It was expected that net inflows of consumer-type time and savings deposits to banks and to non­ bank thrift institutions would be relatively strong. Demands for bank credit appeared likely to be moderate. The Committee concluded that growth in and M2 over the January-February period at annual rates within ranges of tolerance of 3V2 to 6V2 per cent and 7 to 10 per cent, respectively, would be consistent with its longer-run objectives for the monetary aggre­ gates. The members agreed that such growth rates would be likely to involve growth in reserves available to support private nonbank deposits (RPD’s) within a range of tolerance of 6lA to 9xk per cent. They also agreed that in the period until the next meeting the weekly average Federal funds rate might be expected to vary in an orderly fashion within a range of 6V2 to per cent, if necessary in the course of operations. The members also agreed that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of developments in domestic and international financial markets. It was understood that the Chairman might call upon the Committee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 235 to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objectives and con­ straints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services fell sharply in the fourth quarter of 1974 and that further declines are in prospect for the months immediately ahead. In December declines in industrial production and employ­ ment again were sharp and widespread, and the unemployment rate increased from 6.5 to 7.1 per cent. Average wholesale prices of industrial commodities were unchanged, after having risen much less rapidly from August to November than earlier in the year, and prices of farm and food products declined. In recent months increases in average wage rates have been large, but not so large as in the spring and summer. In his State of the Union message, the President set forth a program of fiscal stimulus, including tax rebates for individuals and a tempo­ rary increase in the investment tax credit for business. The President also proposed a new program to reduce the consumption of energy; the program includes new taxes in the energy area along with measures of tax relief that, on balance, are designed to have a neutral effect on the size of the Federal deficit. The dollar in December and early January continued the gradual decline against leading foreign currencies that began in September. In November, as in October, the U.S. foreign trade deficit was moderate; sizable inflows of official funds from oil-exporting coun­ tries continued, while other capital inflows and outflows reported by banks were roughly offsetting. The narrowly defined money stock grew at an annual rate of 4 per cent over the fourth quarter of 1974, while the more broadly defined measure of the stock grew at a rate of nearly 7 per cent. In December and early January, however, the narrowly defined money stock changed little. Net inflows of consumer-type time and savings deposits at banks slowed sharply in December, although they continued to improve at nonbank thrift institutions; in early January deposit inflows at banks picked up. Business demands for short-term credit, both at banks and in the commercial paper market, moderated further in December, while demands in the long-term market re­ mained strong. Over recent weeks short-term market interest rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin □ April 1975 have declined substantially, but yields on long-term securities have changed little, on balance. Federal Reserve discount rates were reduced from 13A to IV* per cent in early January, and on January 20 the Board announced a reduction in reserve requirements on demand deposits estimated to release $1.1 billion in required re­ serves . In light of the foregoing developments, it is the policy of the Federal Open Market Committee, while resisting inflationary pres­ sures and working toward equilibrium in the country’s balance of payments, to foster financial conditions conducive to cushioning recessionary tendencies and stimulating economic recovery. To implement this policy, while taking account of the forthcoming Treasury financing, developments in domestic and international fi­ nancial markets, and the Board’s action on reserve requirements, the Committee seeks to achieve bank reserve and money market conditions consistent with more rapid growth in monetary aggregates over the months ahead than has occurred in recent months. Votes for this action: Messrs. Burns, Black, Bucher, Clay, Coldwell, Holland, Kimbrel, Mitchell, Sheehan, Wallich, Winn, and Debs. Votes against this action: None. Absent and not voting: Mr. Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) Subsequent to the meeting, on February 5, the available data suggested that in January had declined sharply and that growth in M2 had been only modest. Growth rates for the January-February period appeared to be well below the lower limits of the ranges of tolerance specified by the Committee. The weakness in the monetary aggregates wholly reflected the behavior of demand deposits; growth in consumer-type time deposits remained rela­ tively strong. The System Account Manager currently was endeav­ oring to supply reserves at a rate thought to be consistent with a Federal funds rate of 6xh per cent, the lower limit of the range of tolerance that had been specified by the Committee. On February 5 a majority of the members concurred in the Chairman’s recom­ mendation that, in light of those developments and of the reduction in discount rates effective that day, the lower limit of the funds rate constraint be reduced to 61A per cent. Mr. Sheehan did not concur because he preferred to reduce the lower limit of the funds rate constraint to 6 per cent, rather than 6xk per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 237 2. Amendment to authorization for domestic open market operations On January 30 the Committee members voted to amend a provi­ sion of paragraph 2 of the authorization for domestic open market operations, which specified that a Reserve Bank other than the New York Bank could purchase special certificates of indebtedness directly from the Treasury only if the latter Bank was closed, by striking the word “if” in the clause “or, if the New York Bank is closed,” and inserting in its place the words “under special circumstances, such as when. . . .’’ With this amendment, para­ graph 2 read as follows: The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York, or, under special circum­ stances, such as when the New York Reserve Bank is closed, any other Federal Reserve Bank, to purchase directly from the Treasury for its own account (with discretion, in cases where it seems desira­ ble, to issue participations to one or more Federal Reserve Banks) such amounts of special short-term certificates of indebtedness as may be necessary from time to time for the temporary accommo­ dation of the Treasury; provided that the rate charged on such cer­ tificates shall be a rate XA of 1 per cent below the discount rate of the Federal Reserve Bank of New York at the time of such pur­ chases, and provided further that the total amount of such certifi­ cates held at any one time by the Federal Reserve Banks shall not exceed $1 billion. Votes for this action: Messrs. Burns, Black, Bucher, Clay, Coldwell, Holland, Mitchell, Sheehan, Winn, Baughman, and Debs. Votes against this action: None. Absent and not voting: Messrs. Hayes, Kimbrel, and Wallich. (Mr. Debs voted as alternate for Mr. Hayes and Mr. Baughman voted as alternate for Mr. Kimbrel.) This action was taken on the recommendation of the Account Manager, who had advised Committee members that, under cer­ tain circumstances involving holidays not uniformly celebrated throughout the country, it would be convenient for the Treasury if the authority for Reserve Banks other than New York to pur­ chase special Treasury certificates of indebtedness was not con­ fined exclusively to times when the New York Reserve Bank was closed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 Federal Reserve Bulletin □ April 1975 MEETING HELD ON FEBRUARY 19, 1975 1. Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services, which had declined throughout 1974, was falling sharply further in the first quarter of 1975; that the rise in prices was moderating significantly ; and that nominal GNP was declining. Staff projections suggested that real economic activity would recede further in the second quarter and that price increases would continue to moderate. In January retail sales had risen somewhat, according to the advance estimate, but they had remained well below the levels of last summer and early autumn. For the third consecutive month cutbacks in production and employment were substantial and wide­ spread, in part because of continuing efforts to liquidate inventories. The unemployment rate rose a full percentage point, to 8.2 per cent, and the number of persons working only part time increased further. The advance in the index of average hourly earnings for private nonfarm production workers was substantial in January, but as in the final months of 1974, it was considerably less rapid than in the spring and summer of last year. Average wholesale prices of industrial commodities—which were unchanged in December— rose moderately in January, in part because of increases in machin­ ery and in fuels and power; wholesale prices of farm and food products declined further. In December the consumer price index had continued to rise, although the increase had not been so large as in most earlier months in 1974. The latest staff projections for the first half of 1975 suggested that nominal GNP would change little and that real GNP would contract substantially more than had been expected at the time of the last meeting, to a considerable extent because the curtailment in business fixed investment and the liquidation of business inven­ tories were now expected to be sharper than had been anticipated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 239 earlier. It was now expected that the rise in disposable personal income would fall short of the increase in consumer prices until late in the second quarter—when tax rebates were scheduled under the administration’s budget proposals—and that real personal con­ sumption expenditures would decline. However, the more rapid liquidation of inventories expected in the first half of the year— along with the tax rebates and other stimulative fiscal measures in prospect—tended to strengthen the prospects for an upturn in economic activity in the second half. The exchange rate for the dollar against leading foreign curren­ cies remained under downward pressure throughout January. In early February the Federal Reserve System and some European central banks began concerted intervention purchases of dollars in the exchange markets, which—in conjunction with sharp decreases in European interest rates—arrested the decline in the value of the dollar. In the days just before this meeting, however, downward pressure was renewed and the value of the dollar declined some­ what. In December the U.S. foreign trade deficit had widened, reflecting a substantial increase in imports of fuels and decreases in exports of many nonagricultural products. At U.S. commercial banks total loans and investments rose moderately from the end of December to the end of January, after having declined sharply in the preceding month. Over the 2-month period, outstanding bank loans to business declined; business demands for short-term credit weakened both at banks and in the commercial paper market, reflecting the recession in economic activity and business funding of short-term debts through heavy capital market financing. Consumer loans at banks also declined, while real estate loans increased moderately. In late January and early February most banks gradually reduced the prime rate appli­ cable to large corporations from 10 per cent to 83A per cent, but reductions in the rate continued to lag behind declines in short-term market interest rates. The narrowly defined money stock (Mx)—which had grown at an annual rate of about 4.5 per cent in the fourth quarter of 1974—declined at a rate of about 9.5 per cent in January, reflecting a sharp decrease in demand deposits; the amount of currency in circulation continued to expand. Net inflows of consumer-type time and savings deposits at banks and at nonbank thrift institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 Federal Reserve Bulletin □ April 1975 were strong, and broader measures of the money stock (M2 and M3) continued to grow, although at rates well below those in the fourth quarter of last year. On January 22 the Treasury announced that it would auction up to $5.5 billion of notes and bonds, of which $3.55 billion represented refunding of publicly held notes that were to mature in mid-February. In auctions on January 28, 29, and 30, respec­ tively, the Treasury sold $3 billion of 3^-year notes at an average price to yield 7.21 per cent, $1.75 billion of 6-year notes at an average price to yield 7.49 per cent, and $750 million of 25-year bonds at an average price to yield 7.95 per cent. System open market operations since the January 20-21 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with more rapid growth in monetary aggregates over the months ahead than had occurred in recent months, while taking account of the forthcoming Treasury financing, developments in domestic and international financial markets, and the Board’s action of January 20 reducing reserve requirements on demand deposits. Data that had become available in the weeks immediately after the January meeting suggested that in the January-February period the aggregates would grow at rates below the lower limits of the ranges of tolerance that had been specified by the Committee. Consequently, System operations per­ sistently had been directed toward further easing in bank reserve and money market conditions. The Federal funds rate, which had averaged 7 Vs per cent in the statement week ending January 22, had declined by the statement week ending February 5 to an average 6V2 per cent, the lower limit of its specified range of tolerance. The data that became available in early February indicated still greater weakness in the aggregates; it appeared that growth rates for and M2 in the January-February period would fall well below the lower limits of the ranges of tolerance specified by the Committee. On February 5 a majority of the members concurred in the Chairman’s recommendation that the lower limit of the funds rate constraint be reduced to 6lA per cent, and over the period remaining until this meeting the funds rate was close to that level. Short-term market interest rates declined substantially further over the inter-meeting period, in response to the weakness in business demands for short-term credit and to System open market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 241 operations to ease bank reserve and money market conditions. On the day before this meeting the market rate on 3-month Treasury bills was 5.32 per cent, down about 1 percentage point from the rate at the time of the last meeting. Federal Reserve discount rates were reduced at nine Reserve Banks from l lA to 63A per cent, effective February 5; shortly thereafter, rates were reduced at the remaining three Banks. The continued easing in short-term interest rates contributed to significant declines in longer-term rates, notwithstanding a large volume of offerings of new issues. Public offerings of corporate bonds rose sharply in January to a near-record volume, and only a moderate decline was in prospect for February. In the home mortgage market, contract interest rates on new commitments for conventional mortgages in the primary market and yields on com­ mitments in the secondary market for Federally underwritten mort­ gages declined substantially further during January. The Committee decided that the economic situation and outlook called for more rapid growth in monetary aggregates over the months ahead than had occurred in recent months. A staff analysis suggested that the demand for money would rebound and that growth in Mx would be substantial in the weeks immediately ahead, in accordance with an expected shift toward a more normal rela­ tionship between the transactions demands for money and nominal GNP. However, in part because of the weaker behavior of nominal GNP now projected, it appeared likely that if Mx were to grow at a rate consistent with the Committee’s longer-run objectives for the monetary aggregates, money market conditions would have to ease further in the period immediately ahead. Sustained strength in net inflows of consumer-type time and savings deposits to banks and to nonbank thrift institutions was anticipated, in response to the continuing decline in short-term interest rates. Private demands for short-term credit were expected to remain weak, but the Treas­ ury was likely to borrow additional new cash over the months ahead. The Committee concluded that growth in Mx and M2 over the February-March period at annual rates within ranges of tolerance of 5xh to IV2 per cent and 6V2 to 8V2 per cent, respectively, would be consistent with its longer-run objectives for the monetary aggre­ gates. The growth rate of reserves available to support private Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 Federal Reserve Bulletin □ April 1975 nonbank deposits (RPD’s) in the same period was expected to be low—in a range of lA to 2 lA per cent—mainly because of the 2-week lag in reserve accounting. The members agreed that in the period until the next meeting the weekly average Federal funds rate might be expected to vary in an orderly fashion in a range of 5lA to 6lA per cent, if necessary in the course of seeking monetary growth rates within the ranges specified. The members also agreed that in the conduct of operations, account should be taken of developments in domestic and international financial markets. 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 continuing to fall sharply in the current quarter. In January declines in industrial production and employment were large and widespread for the third consecutive month. The unemployment rate rose a full percentage point to 8.2 per cent. Average wholesale prices of industrial commodities, which were unchanged in December, rose moderately in January, and prices of farm and food products declined further. In recent months increases in average wage rates have moderated, although they have still been large. The decline in the foreign exchange value of the dollar was arrested in early February by concerted central bank intervention and a sharp decline in European interest rates, but in recent days the dollar has declined somewhat. In December the U.S. foreign trade deficit increased, but it was smaller in the fourth quarter as a whole than in the third. The narrowly defined money stock, after having grown at an annual rate of about AV2 per cent over the fourth quarter of 1974, declined sharply in January. However, net inflows of consumer-type time and savings deposits at banks and nonbank thrift institutions were large, and broader measures of the money stock continued to expand. Business demands for short-term credit have weakened in recent months, both at banks and in the commercial paper market while demands in the long-term market have been exceptionally strong. Since mid-January short-term market interest rates have fallen substantially further, and yields on long-term securities also have declined. Federal Reserve discount rates were reduced from 1XA to 63A per cent in early February. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 243 ducive to cushioning recessionary tendencies and stimulating eco­ nomic recovery, while resisting inflationary pressures and working toward 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 more rapid growth in monetary aggregates over the months ahead than has occurred in recent months. Votes for this action: Messrs. Burns, Hayes, Black, Bucher, Clay, Coldwell, Holland, Kimbrel, Mitchell, Wallich, and Winn. Votes against this action: None. Absent and not voting: Mr. Sheehan. 2. Amendment to foreign currency directive At this meeting the Committee amended paragraph 2(c) of the foreign currency directive to delete the word “Special” from the phrase “Special Manager” wherever the phrase appears in that paragraph. In other actions at the meeting the Committee had approved a realignment of personnel who supervise System open market operations at the Federal Reserve Bank of New York under the Committee’s direction.1 The realignment—which followed ac­ ceptance of the resignation of the incumbent Special Manager in connection with his planned retirement from the New York Bank—involved, among other things, the elimination of the posi­ tion of Special Manager for Foreign Currency Operations and the assignment of responsibility for the conduct of open market opera­ tions in foreign currencies, as well as in domestic securities, to the Manager of the System Open Market Account. The amendment to the foreign currency directive was made to conform to these changes. Votes for this action: Messrs. Burns, Hayes, Black, Bucher, Clay, Coldwell, Holland, Kimbrel, Mitchell, Sheehan, Wallich, and Winn. Votes against this action: None. Revisions in the Committee’s Rules of Organization and Rules of Procedure made for this purpose were published in the Federal Register for Mar. 7, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 Federal Reserve Bulletin □ April 1975 3. Amendment to authorization for domestic open market operations On March 10 the Committee members voted to amend a provision of paragraph 2 of the authorization for domestic open market operations to raise from $1 billion to $2 billion the limit on System holdings of special short-term certificates of indebtedness purchased directly from the Treasury. With this amendment, paragraph 2 reads as follows: The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York, or, under special circum­ stances, such as when the New York Reserve Bank is closed, any other Federal Reserve Bank, to purchase directly from the Treasury for its own account (with discretion, in cases where it seems desirable, to issue participations to one or more Federal Reserve Banks) such amounts of special short-term certificates of indebt­ edness as may be necessary from time to time for the temporary accommodation of the Treasury; provided that the rate charged on such certificates shall be a rate of lA of 1 per cent below the discount rate of the Federal Reserve Bank of New York at the time of such purchases, and provided further that the total amount of such certificates held at any one time by the Federal Reserve Banks shall not exceed $2 billion. Votes for this action: Messrs. Burns, Hayes, Baughman, Coldwell, Eastburn, Holland, Mayo, Mitchell, and Sheehan. Votes against this action: None. Absent and not voting: Messrs. Bucher, Mac- Laury, and Wallich. This action was taken on the recommendation of the Account Manager, who had advised that current projections of Treasury balances had indicated that temporary cash low points in mid-March and again in mid-April might require special borrowing as high as $500 million to $700 million. In view of the day-to-day volatility in the Treasury’s account, and in estimates of changes in that account, the Manager had recommended the increase of the limit, with the understanding that he would recommend restoration of the $1 billion limit as soon as it appeared reasonable to do so. 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 45 days after the meeting and are subsequently published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

245 Law Department S tatutes, regulations, interpretations, and decisions RULES REGARDING DELEGATION wise, data for others of the kinds banks have OF AUTHORITY processed, by one means or another, in conducting their internal operations and accommodating their customers. It is not intended to permit holding The Board of Governors has amended its Rules companies to engage in automated data processing Regarding Delegation of Authority to reflect the activities by developing programs either upon their delegation of authority to review and make deter­ own initiative or upon request, unless the data minations with respect to an appeal of denial of involved are financially oriented. The Board re­ access to records of the Board requested pursuant gards as incidental activities necessary to carry on to the Freedom of Information Act and provided the permissible activities in this area the following: for in section 261.4(e) of the Board’s Rules Re­ (1) making excess computer time available to garding Availability of Information. anyone so long as the only involvement by the holding company system is furnishing the facility AMENDMENT TO RULES and necessary operating personnel; (2) selling a REGARDING DELEGATION OF byproduct of the development of a program for AUTHORITY a permissible data processing activity; and (3) furnishing any data processing service upon re­ Effective March 19, 1975, section 265.1a(b) is quest of a customer if such data processing service added to read as follows: is not otherwise reasonably available in the rele­ Section 265.1a—Specific Functions Del­ vant market area; and (4) supplying formatting for egated to Board Members computer output microfilm and supplying com­ puter output microfilm only as an output option for data otherwise being permissibly processed by (b) Any Board member designated by the the holding company system. Chairman is authorized: (1) Under section (a)(6) of the Freedom of FEDERAL OPEN MARKET COMMITTEE Information Act (5 U.S.C. § 552) and Part 261 of this Chapter (Rules Regarding Availability of RULES REGARDING AVAILABILITY Information) to review and make a determination OF INFORMATION with respect to an appeal of denial of access to records of the Board made in accordance with the The Federal Open Market Committee has procedures prescribed by the Board. amended its Rules Regarding Availability of In­ formation to indicate that the domestic policy INTERPRETATION OF REGULATION Y directive adopted at each meeting of the Commit­ tee will be published in the Federal Register ap­ BANK HOLDING COMPANIES proximately 45 days after the date of its adoption, rather than approximately 90 days as previously Activities Closely Related to Banking provided in that subsection. AMENDMENT TO RULES REGARDING AVAILABILITY OF Data processing: The authority of holding com­ INFORMATION panies under § 225.4(a) to engage in data process­ ing activities is intended to permit holding compa­ Effective March 24, 1975, section 271.5(a) is nies to process, by means of a computer or other­ amended to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 Federal Reserve Bulletin □ April 1975 Section 271.5—Deferment of Availabil­ to prevent impairment of the effective discharge ity of Certain Information of the Committee’s statutory responsibilities. For example, the Committee’s domestic policy direc­ (a) Deferred availability of information. In tive adopted at each meeting of the Committee some instances, certain types of information of the is published in the Federal Register approximately Committee are not published in the Federal Regis­ 45 days after the date of its adoption; and no ter or made available for public inspection or information in the records of the Committee relat­ copying until after such period of time as the ing to the adoption of any such directive is made Committee may determine to be reasonably nec­ available for public inspection or copying before essary to avoid the effects described in paragraph it is published in the Federal Register or is other­ (b) of this section or as may otherwise be necessary wise released to the public by the Committee. BANK HOLDING COM PANY AND BANK M ERG ER ORDERS ISSUED BY TH E BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF BANK Agents and by several local Kansas insurance HOLDING COMPANY ACT agents, in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and the consid­ Erie Bankshares, Inc., erations specified in § 4(c)(8) of the Act. Erie, Kansas Applicant is a nonoperating corporation organ­ ized for the purposes of becoming a bank holding Order Denying Formation of Bank company through acquisition of Bank and of ac­ Holding Company quiring Agency from the principals of Bank. Bank Erie Bankshares, Inc., Erie, Kansas, has applied (deposits of $7.1 million), the only banking insti­ for the Board’s approval under § 3(a)(1) of the tution in Erie, an agricultural community (popula­ Bank Holding Company Act (12 U.S.C. tion of 1,414 at the 1970 Census) located in 1842(a)(1)) to become a bank holding company southeastern Kansas, is the third largest of six through acquisition of 97 per cent of the voting banks in the Neosho County banking market and shares of Home State Bank, Erie, Kansas holds approximately 11 per cent of the total de­ (“Bank”). Applicant has also applied, pursuant posits in the market. (All banking data are as of to § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)) June 30, 1974.) The principals of Bank also own and § 225.4(b)(2) of the Board’s Regulation Y, the controlling interest in the Stark State Bank, for permission to acquire the Virgil A. Lair Stark, Kansas (deposits of $2.9 million), the Agency, Erie, Kansas (“Agency”), an agency that smallest bank in the relevant banking market with primarily sells credit life and credit accident and 4.3 per cent of total deposits therein. Inasmuch health insurance. Upon acquisition of Agency, as the proposed transaction represents a restruc­ Applicant proposes to expand Agency’s activities turing of the ownership of Bank from individuals to include the sale of general insurance; these to a corporation owned by the same individuals, activities will be conducted in a community with and since Applicant has no present subsidiaries, a population of less than 5,000 persons. Such it does not appear that consummation of the pro­ activities have been determined by the Board in posal would have adverse effects on competition § 225.4(a)(9)(iii) of Regulation Y as permissible in any relevant area. Accordingly, based on the for bank holding companies, subject to Board foregoing and other facts of record, competitive approval of individual proposals in accordance considerations are consistent with approval of the with the procedures of § 225.4(b). application to acquire Bank. Notice of the applications, affording opportunity As it has indicated on previous occasions, the for interested persons to submit comments and Board believes that a bank holding company views, has been given in accordance with §§ 3 should be a source of financial and managerial and 4 of the Act (39 Federal Register 39611). The strength for its subsidiary bank(s) and every time for filing comments and views has expired, proposed formation or acquisition is examined and the Board has considered the applications and closely with this consideration in mind. Under the all comments received, including those submitted proposal, Applicant would incur debt of $515,000, by the Kansas Association of Mutual Insurance which Applicant proposes to service through divi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 247 dends from Bank and income from Agency. In Old Kent Financial Corporation, the Board’s view, the debt retirement program of Grand Rapids, Michigan Applicant, which involves substantial dividends from Bank, may not provide Applicant with the Order Denying Acquisition of Bank necessary financial flexibility to service the acqui­ sition debt while maintaining Bank’s capital at a Old Kent Financial Corporation, Grand Rapids, desirable level. In this latter connection, the Board Michigan, a bank holding company within the notes also that Bank’s overall financial condition, meaning of the Bank Holding Company Act, has including certain of its equity capital ratios, has applied for the Board’s approval under § 3(a)(3) declined somewhat since control of Bank was of the Act (12 U.S.C. 1842(a)(3)) to acquire all acquired by principals of Applicant in 1972. It of the voting shares of the successor by merger appears that this situation has developed in part to National Lumberman’s Bank and Trust Com­ due to a lack of banking experience on the part pany, Muskegon, Michigan (“Bank”). The bank of Applicant’s principals. Thus, on the basis of into which Bank is to be merged has no signifi­ the foregoing and other facts of record, the Board cance except as a means to facilitate the acquisition is unable to conclude that managerial consid­ of the voting shares of Bank. Accordingly, the erations lend any weight toward approval of the proposed acquisition of shares of the successor application. Accordingly, the Board concludes that organization is treated herein as the proposed ac­ the above considerations relating to the banking quisition of the shares of Bank. factors weigh against approval of the application. By Order dated January 25, 1974, the Board The proposed formation represents merely a of Governors denied the subject application (39 restructuring of the ownership of Bank with no Federal Register 5374). Thereafter, on August 9, significant changes in Bank’s operations or the 1974, the Board granted a Request for Recon­ services offered to customers. Consequently, con­ sideration filed by Applicant, pursuant to section siderations relating to the convenience and needs 262.3(g)(5) of the Board’s Rules of Procedure (12 of the community to be served lend no weight CFR 262.3(g)(5)), whereby the Board agreed to toward approval of the application. reconsider the application. On the basis of all the circumstances concerning Notice of the Board’s action agreeing to recon­ this application, the Board concludes that the sider the application to acquire Bank has been banking considerations involved in the proposal given (39 Federal Register 30080). The time for present adverse factors bearing on the financial filing comments and views with respect to the condition and managerial resources of Applicant application has expired. The Board has recon­ and Bank. Such adverse factors are not outweighed sidered the application, together with all comments by any procompetitive effects or by benefits which received and the supplemental material submitted would result in serving the convenience and needs by Applicant in connection therewith, in light of of the community. Accordingly, it is the Board’s the factors set forth in § 3(c) of the Act. judgment that approval of the application would Applicant, the seventh largest banking organi­ not be in the public interest and that the application zation in Michigan, controls four banks with ag­ for approval to become a bank holding company gregate deposits of approximately $858.3 million, should be denied.1 representing about 3 per cent of the total deposits By order of the Board of Governors, effective in commercial banks in the State.1 Acquisition of March 21, 1975. Bank ($111.1 million in deposits) would increase Applicant’s share of deposits in the State by less Voting for this action: Chairman Burns and Gover­ than one per cent and would not significantly nors Mitchell, Sheehan, Holland, Wallich, and Coldwell. Absent and not voting: Governor Bucher. increase the concentration of banking resources on a statewide basis. (Signed) Theodore E. A llison, Bank, the second largest of three banks head­ quartered in the city of Muskegon, has about 24 [seal] Secretary of the Board. per cent of the total commercial bank deposits in Un view of the Board’s action with respect to the application to become a bank holding company, consideration of the § 4(c)(8) application to engage in insurance agency activities becomes moot. ^tate banking data are as of June 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 Federal Reserve Bulletin □ April 1975 the Muskegon-Grand Haven banking market, and market is partially explained by Old Kent’s signif­ is the second largest of five banks in that market.2 icant position in the neighboring market and the The first and third largest banks in the market television advertising pattern for the region. There (which are also headquartered in Muskegon) con­ are no television stations located along the lake trol, respectively, about 32 and 19 per cent of total shore and television coverage for the region is deposits in commercial banks in the market. The transmitted only from Grand Rapids. Old Kent fourth and fifth largest banks in the market are advertises from the Grand Rapids stations headquartered in Grand Haven and each control throughout the Muskegon-Grand Haven area while approximately 12 per cent of total deposits in banks located in the Muskegon-Grand Haven area commercial banks in the market.3 do not appear to advertise extensively through Applicant’s lead bank, Old Kent Bank and Trust those stations. The record shows that Old Kent Company (“Old Kent”), is located in Grand has met with some success in obtaining certain Rapids, which is approximately 35 miles east of business from the relevant market and, in the Muskegon. Old Kent (deposits of about $768 Board’s view, Old Kent is in a position to exert million) is the largest banking organization in the an even greater competitive influence in Bank’s Grand Rapids banking market with 49 per cent market in the future. Accordingly, the Board con­ of the commercial bank deposits in that market. cludes that consummation of the proposal would Although Bank and Old Kent are located in sepa­ eliminate existing competition as well as the prob­ rate banking markets, the Board, in its earlier ability of increased competition developing be­ Order with respect to this application, noted that tween Bank and Old Kent in the future. Old Kent derived some loans, deposits and trust In its previous action on this application, the accounts from Bank’s service area and that Bank Board also concluded that consummation of the derived deposits from Old Kent’s service area. The proposed acquisition would eliminate the likeli­ Board concluded that consummation of the pro­ hood that Applicant would enter the market de posal would eliminate existing competition be­ novo and thus would have an adverse effect on tween Old Kent and Bank and the probability of potential competition. In the reconsideration re­ increased competition developing between them in quest, Applicant argued that the Board was in error the future. in not taking into consideration an application filed In connection with the reconsideration of this with the Regional Administrator of National Banks application, Applicant submitted in response to a for the formation of a de novo national bank to Board request additional data that indicated the be located in Norton Shores. However, that de amount of business that both banking organi­ novo application has now been withdrawn and the zations obtained from each other’s respective Board continues to be of the view that Norton market areas, the geographic definition of which Shores is a section of the relevant market which had been previously published by the Board.4 On is capable of supporting new entry. In addition, the basis of this new data, the Board believes that the Board believes Applicant is one of the most the amount of business that Old Kent obtains from likely entrants into the Muskegon-Grand Haven Bank’s market area is meaningful, especially for banking market in view of its relative size, its such banking services as commercial accounts, proximity to the market, and its penchant for dairy and farm accounts, large certificates of de­ expanding in western Michigan. Furthermore, posit and trust business. It further appears from Applicant has the resources and expertise to enter the record that Old Kent is an active competitor the relevant market de novo. In view of the fore­ in Bank’s relevant market area for certain banking going, the Board reaffirms its conclusion that con­ services. The influence of Old Kent in the relevant summation of the proposed acquisition would have an adverse effect on potential competition in the Muskegon-Grand Haven banking market. The Board previously concluded that competi­ 2The Muskegon-Grand Haven banking market is approxi­ tive considerations relating to this application mated by the Muskegon-Grand Haven Ranally Metro Area which consists of most of Muskegon County and the northwest weighed sufficiently against approval that it should corner of Ottawa County. not be approved unless the anticompetitive effects 3Market data are as of June 30, 1974. were outweighed by considerations relating to the 4Board Order dated January 25, 1974, denying the subject application (60 Federal Reserve Bulletin 133), and Board financial and managerial resources and future Order of October 2, 1974, approving the application of Na­ prospects of Applicant and Bank or the conven­ tional Detroit Corporation, Detroit, Michigan, to acquire Grand ience and needs of the communities to be served. Valley National Bank, Grandville, Michigan (39 Federal Reg­ ister 36510). In addition to the foregoing, the Board expressed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 249 concern, and continues to be of the view, that financial resources and has recently retained suffi­ approval of the proposed acquisition would per­ cient earnings to strengthen its capital position. petuate a trend whereby Applicant would become In view of the foregoing, Bank appears to be a dominant in a four-county region in western viable independent competitor and the importance Michigan (approximated by Kent, Ottawa, and of Applicant’s proposed assistance by injecting Muskegon Counties, plus the lower one-third of equity capital into Bank is mitigated. While Ap­ Newaygo County). The Grand Rapids, Holland, plicant has the resources to assist Bank with man­ Fremont and Muskegon-Grand Haven banking agement succession, it appears that any problems markets are all located within this four-county encountered by Bank in this area could be reme­ region. Applicant is the leading organization in died by other less anticompetitive means than the the Grand Rapids market and has made significant proposed acquisition by Applicant. Accordingly, acquisitions in the adjacent Holland and Fremont the Board does not regard considerations relating markets. As noted above, Applicant is already to the banking factors as providing significant capable of exerting a competitive influence on the weight toward approval of the application. Muskegon-Grand Haven market by virtue of its With respect to convenience and needs consid­ significant presence in Grand Rapids. Applicant’s erations, Applicant has indicated that it would proposal to acquire the second largest bank in the effect changes in Bank’s services in such areas Muskegon-Grand Haven banking market would as trust services, farm lending, international serv­ increase Applicant’s share of the total deposits in ices, and services for larger commercial custom­ the four-county region from 37 per cent to about ers. However, no evidence has been presented that 42 per cent, more than twice the share (18 per the banking needs of the public in the relevant cent) of the second largest banking organization market are not presently being met. Thus, in the in the region.5 In the Board’s opinion, the subject Board’s view, such considerations are consistent proposal would inhibit competition by enhancing with, but do not lend substantial weight toward, Applicant’s significant position in the region, approval of the application. thereby increasing the size disparity among the On the basis of the foregoing, the Board con­ banking organizations in this section of the State tinues to find that anticompetitive effects flowing and increasing the concentration of banking re­ from Applicant’s proposal are not outweighed by sources in the region. Also, approval of this pro­ considerations relating to banking factors or relat­ posal would remove Bank as an entry vehicle for ing to the convenience and needs of the community a bank holding company not already represented to be served. in the region—an alternative that, if accomplished, Accordingly, on the basis of the record in this would serve to promote competition in the region. case and for the reasons set forth hereinbefore, Further, in view of the fact that Applicant’s re­ the Board’s Order of January 25, 1974, is hereby sources are finite, consummation of the proposed affirmed, and the subject application is denied. acquisition would detract from Applicant’s ability By order of the Board of Governors, effective to enter and compete in other markets in the State March 26, 1975. outside of the western region of Michigan. Voting for this action: Governors Bucher, Holland, Accordingly, based on the foregoing and the Wallich, and Coldwell. Absent and not voting: Chair­ facts of record, the Board continues to be of the man Burns and Governors Mitchell and Sheehan. view that the anticompetitive effects flowing from (Signed) Theodore E. A llison, Applicant’s proposal are such that approval of the [seal] Secretary of the Board. subject application would not be in the public interest and that the application should be denied unless the anticompetitive effects of the proposal Republic of Texas Corporation, are outweighed by positive considerations in the Dallas, Texas record. Order Approving Merger of Bank Holding The financial and managerial resources and fu­ Companies ture prospects of Applicant and its subsidiary banks are regarded as satisfactory and consistent Republic of Texas Corporation, Dallas, Texas with approval of the application. Bank has sound (“Applicant”), a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to merge 5Regional data are as of June 30, 1974. with Houston National Company, Houston, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 Federal Reserve Bulletin □ April 1975 (“Company”), a bank holding company, and available in the market that might serve as a thereby acquire 100 per cent of the voting shares foothold acquisition for Applicant. However, in (less directors’ qualifying shares) of Houston Na­ view of the fact that there are 169 banks in the tional Bank, Houston, Texas (“Bank”). Inasmuch Houston market, including representatives from as Company’s principal operating asset is Bank, the State’s largest bank holding companies, and the proposed merger of Applicant with Company the generally competitive nature of the market, the is treated herein as the proposed acquisition of negative effects of the proposal on present and Bank. future competition are minimal. Bank does not Notice of receipt of the application, affording appear to have a significant competitive position an opportunity for interested persons to submit within the market despite its $402 million total comments and views, has been given in accord­ deposits. Although relatively large in absolute ance with § 3(b) of the Act. The time for filing terms, Bank ranks a distant fifth in the market with comments and views has expired, and the Board less than one-fourth of the deposits of the market’s has considered the application and all comments largest banking organization and less than one-half received in light of the factors set forth in § 3(c) of the deposits of the third largest banking organi­ of the Act (12 U.S.C. 1842(c)). zation in the market. Moreover, Bank is the only Applicant controls two banks1 with aggregate banking organization of the seven largest in the deposits of approximately $2,000 million,2 repre­ market that is not now part of a multi-bank holding senting approximately 5 per cent of the total de­ company. Affiliation with Applicant would im­ posits in commercial banks in Texas, and ranks prove Bank’s competitive position in the market. thereby as the fourth largest multi-bank holding Accordingly, the Board concludes that, on bal­ company in the State.3 Bank holds total deposits ance, the overall competitive considerations lend of $402 million, representing approximately 1 per weight to approval of the application. cent of total deposits in the State, and is the twelfth In acting on Applicant’s proposal in 1973 to largest banking organization in Texas. Consum­ become a bank holding company, the Board noted mation of the proposal would increase Applicant’s at that time that Applicant’s commitments to add share of the deposits in the State to about 6 per additional capital to Republic National Bank and cent and the resulting organization would become to dispose of certain impermissible, nonbanking the State’s third largest bank holding company. interests within the period prescribed in § 4(a)(2) As noted above, Applicant presently has two of the Act were factors weighing in favor of banking subsidiaries—Republic National Bank of approval of that application (38 Federal Register Dallas ($1,905 million in domestic deposits) and 30580).4 Since the formation of the holding com­ Oak Cliff National Bank ($96 million in deposits). pany in May 1974, improvement has occurred in Both these subsidiaries are located in the Dallas the capital position, internal operations, and credit banking market, wherein Applicant ranks as the condition of Republic National Bank of Dallas; largest banking organization with 5.1 per cent of and Applicant has initiated efforts towards the the market’s deposits. disposal of its impermissible activities. In connec­ The subject proposal would represent Appli­ tion with the present proposal, Applicant has indi­ cant’s initial entry into the Houston market, the cated that the capital of Republic would be aug­ second largest market in terms of deposits in the mented by $126 million during the period from State. Applicant is the only multi-bank holding December 1974 to December 1977. In addition, company in the State with deposits over $1 billion Applicant proposes to increase the capital of Bank that is not represented in Houston and it undoubt­ by $6.5 million during 1975. Applicant is em­ edly regards entry into this market as having a barking on a program of acquisition which will high priority in its future plans. presumably afford it entry to the major banking The Houston market is attractive for de novo markets of the State. To accomplish this, the entry, and several banks smaller than Bank are divestment of the Howard interests should be sub­ stantially consummated on schedule and the pro- Hn addition, Applicant indirectly controls interests of more than 5 per cent but less than 25 per cent in 21 banks. 4For a description of the nonbanking interests which Appli­ 2This figure does not include foreign deposits which cant is required to divest, see the Board’s determination of amounted to $1,183 million as of June 30, 1974. September 10, 1973, regarding the “grandfather” privileges 3 All banking data are as of June 30, 1974, and reflect holding of The Republic National Bank of Dallas with respect to The company formations and acquisitions approved through Jan­ Howard Corporation, Dallas, Texas (“Howard”) (1973 Fed­ uary 31, 1975. eral Reserve Bulletin 768). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 251 ceeds used at least in part to provide the additional represented in the relevant market. Accordingly, capital funds contemplated. On the basis of its the approval and consummation of the transaction judgment that the above objectives are likely to herein would foreclose the likelihood that Appli­ be achieved, the Board finds that considerations cant would enter the market through a more com­ relating to the financial and managerial resources petitive alternative rather than through the acqui­ could be considered reasonably satisfactory and sition of a bank with such substantial resources the overall prospects of Applicant and its subsidi­ as Houston National Bank. A further consideration ary banks favorable and consistent with approval. involved in this proposal is the fact that its con­ Considerations relating to the convenience and summation would also foreclose the possibility needs of the community served by Bank are con­ that Houston National Bank would serve as a lead sistent with, and lend weight toward, approval of bank for an additional regional or statewide multi­ the application in light of the fact that Applicant bank holding company. Thus, in our view, the should be able in a short period of time to provide competitive considerations involved in the pro­ a strong competitive alternative in the Houston posal are adverse. market. It is the Board’s judgment that consum­ In addition, Governor Holland agrees with the mation of the proposed acquisition would be in majority that some recent improvement has oc­ the public interest and that the application should curred in the capital position of Republic National be approved. Bank of Dallas. However, contrary to the view On the basis of the record, the application is expressed by the majority, he believes that Appli­ approved for the reasons summarized above. The cant should not be permitted at this time to expand transaction shall not be made (a) before the thir­ its banking interests by so great a measure as the tieth calendar day following the effective date of acquisition herein at a time when its managerial this Order or (b) later than three months after the and financial resources might more appropriately effective date of this Order, unless such period be directed toward strengthening the financial is extended for good cause by the Board, or by condition of Republic National Bank and its other the Federal Reserve Bank of Dallas pursuant to subsidiaries. The present proposal, which involves delegated authority. the acquisition of a very sizable banking organi­ By order of the Board of Governors, effective zation which is also in need of additional capital, March 18, 1975. would result, in his opinion, in the diversion of Applicant’s resources from its present subsidiaries Voting for this action: Chairman Burns and Gover­ and could thereby detract from Applicant’s overall nors Mitchell, Sheehan, Bucher, and Coldwell. Voting against this action: Governors Holland and Wallich. ability to serve as a source of financial strength for Republic National Bank and to deal with the (Signed) Theodore E. Allison, managerial and financial questions posed by its [seal] Secretary of the Board. other affiliates, including the divestiture of Appli­ Dissenting Statement of cant’s impermissible nonbanking interests already Governors Holland and Wallich mandated by earlier Board action. We disagree with the action taken by the Board ORDERS UNDER SECTION 4 OF BANK in approving the application of Republic of Texas HOLDING COMPANY ACT Corporation to merge with Houston National Cor­ poration and thereby to acquire Houston National First Tennessee National Corporation, Bank. While we do not dispute the facts as set Memphis, Tennessee forth in the majority’s statement, our conclusion Order Approving De Novo Expansion of Insur­ with respect to the adverse effects of the proposal ance Agency Activities leads us to believe that it should be denied. As noted in the majority’s statement, the Hous­ First Tennessee National Corporation, Mem­ ton market is attractive for de novo entry and there phis, Tennessee, a bank holding company within are several banks smaller than Houston National the meaning of the Bank Holding Company Act, Bank in the market that could serve as a foothold has applied for the Board’s approval, under § acquisition for Applicant. Furthermore, it is evi­ 4(c)(8) of the Act and § 225.4(b) of the Board’s dent that Applicant is one of the most likely Regulation Y, to engage de novo in certain addi­ entrants into the Houston market. In fact, it is the tional insurance activities through its subsidiary, only large multibank holding company in the State Crown Finance Company (“Crown”), St. Louis (about $3 billion in deposits) that is not now County, Missouri. Applicant is seeking approval Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin □ April 1975 for Crown to expand its insurance agency activities tioned States.3 Through another subsidiary, Crown to include acting as agent for the sale of: (1) indirectly engages in the underwriting, as rein­ joint-spouse credit life insurance on a reducing surer, of credit life and credit accident and health term basis and (2) physical damage insurance on insurance directly related to extensions of credit personal property pledged as collateral for an ex­ by its subsidiaries. tension of credit.1 Such activities have been deter­ In this application, Applicant seeks approval to mined by the Board to be closely related to bank­ engage de novo in the sale of two additional types ing (12 CFR 225.4(a)(9)). The Board has reviewed of insurance not contemplated by Applicant in the the instant proposal in order that it might be original application to acquire Crown, and conse­ assured that the specific coverages applied for quently not encompassed in the Board’s Order of under § 225.4(a)(9) were of the kind deemed June 21, 1973. Applicant proposes to act as agent permissible under its insurance regulation. with respect to the sale of joint-spouse credit life Notice of the application, affording opportunity insurance on a reducing term basis in connection for interested persons to submit comments and with extensions of credit by Crown’s finance of­ views on the public interest factors, has been duly fices in the States of Indiana, Iowa, Kansas,4 published (39 Federal Register 28189). The time Missouri, and Oklahoma;5 and to act as agent with for filing comments and views has expired, and respect to the sale of physical damage insurance the Board has considered all comments received on personal property pledged as collateral for in the light of the public interest factors set forth extensions of credit by Crown’s finance offices in in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). the States of Indiana, Iowa, Kansas, and Missouri. Applicant, the largest banking organization in Tennessee, controls 12 subsidiary banks with ag­ gregate deposits of $1.2 billion, representing ap­ proximately 10.6 per cent of total deposits in 3The Board’s Order of June 21, 1973, noted that Crown’s commercial banks in that State.2 Applicant also insurance activities in Illinois would not involve the licensing controls numerous nonbank subsidiaries that en­ of Crown’s subsidiaries as insurance agents in view of a gage in a variety of activities, including mortgage possible prohibition under State law. Although not specifically noted in the Order, a virtually identical situation existed with banking, investment and management services, respect to Crown’s Oklahoma offices. Therefore, Applicant personal property leasing, trust services, and rein­ proposed, with respect to Crown’s offices in these two States, that Crown’s employees would enroll customer-debtors for suring credit life and credit accident and health credit insurance under group credit life and group credit acci­ insurance. dent and health policies issued to Crown as policyholder. It On June 21, 1973, the Board approved Appli­ was understood that Crown would not receive commissions, but might receive premium adjustments. cant’s acquisition of Crown (38 F.R. 17542). Notwithstanding the fact that Crown acts as neither agent Crown and 85 of its subsidiaries engage in the nor broker in offering credit life or credit accident and health activities of making personal loans and purchasing insurance on a group basis to its borrowers in Oklahoma and Illinois, the Board views this activity as the functional equiva­ instalment sales finance contracts. Crown con­ lent of acting as agent or broker in the sale of credit life ducts its finance company activities in seven insurance. Therefore, the Board deems this activity to be a permissible activity for purposes of § 225.4(a)(9)(ii)(a) of States: Illinois, Indiana, Iowa, Kansas, Missouri, Regulation Y. In either situation the offering of such insurance Ohio, and Oklahoma. In addition, through its is directly related to an extension of credit, it insures the same insurance brokerage and agency subsidiaries, type of interest, and it results in the same public benefit to the consumer. Crown currently engages in the sale of credit life 4In view of a new Kansas statute (K.S.A. 9-507) prohibiting and credit accident and health insurance in con­ the performance of nonbanking activities by multibank holding nection with extensions of credit by its finance companies, Applicant has committed that it will cease all of its nonbanking activities in that State by the date on which company subsidiaries in each of the above-menthat statute becomes effective. 5Applicant proposes that employees of Crown’s offices in Oklahoma will enroll debtors of Crown or its subsidiaries for credit insurance under a group policy issued to Crown as the policyholder. Crown would not receive commissions, but *The activities which Applicant proposes to conduct through might receive premium adjustments computed on the basis of Crown’s Oklahoma offices differ slightly from the above-de­ loss experience. The Oklahoma Insurance Commissioner has scribed activities. Applicant does not propose that Crown sell stated, in a written opinion, that credit life and credit accident physical damage insurance on personal property in Oklahoma. and health policies can be sold under the group form and that Also, with respect to joint-spouse credit life insurance, Appli­ a creditor under a group policy is not required to be licensed cant proposes that the employees of Crown’s offices in Okla­ as an insurance agent to enroll members. Applicant confirms homa enroll customer-debtors for credit insurance coverage that Crown’s present insurance activities in Oklahoma conform under group policies issued to Crown as policyholder. with Oklahoma laws and with this Ruling of the Insurance 2All banking data are as of June 30, 1974, and reflect holding Commissioner, and commits that Crown’s future insurance company formations and acquisitions approved through Jan­ activities in Oklahoma will continue to be in conformance with uary 31, 1975. Oklahoma law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 253 The Board has previously found joint-spouse Based upon the foregoing and other consid­ credit life insurance, like other forms of credit life erations reflected in the record, the Board has insurance, to be directly related to an extension determined, in accordance with the provisions of of credit,6 and has permitted the sale of such § 4(c)(8), that consummation of this proposal can insurance in cases in which the credit extension reasonably be expected to result in benefits to the was dependent upon the income of both the hus­ public that outweigh possible adverse effects. Ac­ band and wife. Such insurance is designed to cordingly, the application is hereby approved. This assure repayment of an extension of credit in the determination is subject to the conditions set forth event of death of a co-signer or co-maker of a in § 225.4(c) of Regulation Y and to the Board’s note. Since each of the co-signers or co-makers authority to require such modification or termina­ may be individually responsible for repayment of tion of the activities of a holding company or any the credit extension, the Board regards insurance of its subsidiaries as the Board finds necessary to covering each to be directly related to an extension assure compliance with the provisions and pur­ of credit. poses of the Act and the Board’s regulations and The Board also has previously found that orders issued thereunder, or to prevent evasion various forms of insurance that protect the collat­ thereof. eral in which a subsidiary has a security interest The transaction shall be made not later than as a result of an extension of credit are directly three months after the effective date of this Order, related to an extension of credit within the meaning unless such period is extended for good cause by of § 225.4(a)(9) of Regulation Y. A secured ex­ the Board or by the Federal Reserve Bank of St. tension of credit is usually granted in reliance upon Louis, pursuant to authority hereby delegated. the value of the collateral securing the loan. Thus, By order of the Board of Governors, effective insurance is essential from the lender’s standpoint March 12, 1975. to assure that the value of the collateral will not Voting for this action: Vice Chairman Mitchell and be impaired by physical damage. The direct rela­ Governors Sheehan, Bucher, Holland, Wallich, and tionship of the insurance transaction and the ex­ Coldwell. Absent and not voting: Chairman Burns. tension of credit is further apparent in that the (Signed) Theodore E. A llison, presence or lack of insurance protecting the loan [seal] Secretary of the Board. collateral constitutes an essential element of the lender’s credit evaluation. This finding is in accord with the Board’s Interpretation pertaining to in­ Gamble-Skogmo, Inc., surance that supports the lending transactions of Minneapolis, Minnesota a bank or bank-related firm in a holding company Order Denying Exemption from Prohibitions system (12 CFR 225.128). Against Nonbanking Activities of Bank Since Applicant’s proposal involves the de novo Holding Companies provision of additional types of credit-related in­ surance at offices of Crown which are presently Gamble-Skogmo, Inc., Minneapolis, Minnesota owned by Applicant, it appears that consummation (“Applicant”), a bank holding company within of this proposal would not result in any adverse the meaning of the Bank Holding Company Act effects upon actual or probable future competition. (12 U.S.C. 1841), by virtue of its ownership of Furthermore, it is anticipated that approval of this 95 per cent of the outstanding capital stock of application would enable Crown to provide its Gambles Continental State Bank, St. Paul, Min­ customers with a convenient, alternative source for nesota (“Bank”), has applied to the Board of these additional types of insurance. Governors, pursuant to § 4(d) of the Act, for an There is no evidence in the record indicating exemption from the prohibitions of Section 4 of that consummation of the proposal would result the Act (relating to nonbanking activities of, and in any undue concentration of resources, unfair acquisitions by, a bank holding company). competition, conflicts of interests, unsound bank­ Notice of receipt of the application, affording ing practices, or other adverse effects. an opportunity for interested persons to submit comments or views and request a hearing, was published in the Federal Register (39 Federal 6See Order of May 21, 1973, approving application of Register 22470). Time for filing comments, views Northwest Bancorporation to acquire Banco Credit Life Insur­ ance Company (38 F.R. 14205), and Order of November 12, and requests for a hearing has expired. No com­ 1973, approving application of Irwin Union Corporation to ments have been received nor has any party re­ acquire Irwin Union Credit Insurance Company (60 Bulletin 138). quested a hearing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin □ April 1975 Section 4(d) of the Act provides that, to the market are such significant banking organizations extent such action would not be substantially at as Northwest Bancorporation and First Bank Sys­ variance with the purposes of the Act and subject tem. Accordingly, it does not appear that Bank to such conditions as the Board considers neces­ is a significant competitor in the relevant banking sary to protect the public interest, the Board may market. grant an exemption from the provisions of Section The Bank Holding Company Act Amendments 4 of the Act to a bank holding company that of 1970 were enacted to assure the continuation controlled one bank prior to July 1, 1968, and of the policy of separating banking from other has not thereafter acquired the control of any other commercial enterprises. On the other hand, Sec­ bank in order (1) to avoid disrupting business tion 4(d) of the Act, which was added as part of relationships that have existed over a long period the 1970 Amendments, is a departure from this of years without adversely affecting the banks or policy and is designed to provide a limited number communities involved, or (2) to avoid forced sales of companies which qualify a complete exemption of small locally owned banks to purchasers not from the general prohibitions against nonbanking similarly representative of community interests, or activities contained in the Act, provided such an (3) to allow retention of banks that are so small exemption “would not be substantially at variance in relation to the holding company’s total interests with the purposes of this Act.” and so small in relation to the banking market to To assure that the granting of an exemption be served as to minimize the likelihood that the would not be substantially at variance with the bank’s powers to grant or deny credit may be purposes of the Act, the Board believes that a influenced by a desire to further the holding com­ company seeking an exemption should be able to pany’s other interests. demonstrate that it has not used its bank subsidiary The Board has considered the application in to gain any special advantage for its nonbank light of the factors set forth in § 4(d) of the Act activities nor engaged in any other practices that and finds that: would be to the detriment of such banking subsid­ Applicant (total assets of $599.2 million as of iary or the community served thereby. On the basis January 26, 1974) is the 21st largest retailing of the facts of record, the Board is unable to company in the United States,1 and is primarily conclude that the relationship of Applicant to Bank engaged in the retailing and wholesaling of a has resulted in benefits to Bank and the community variety of durable and soft goods in 38 States and served by it so as to warrant the granting of the throughout Canada. Applicant markets its products exemption under § 4(d) of the Act. through 673 company owned stores; 2,850 indi­ Under the Act the Board has broad discretion vidually owned and operated franchise dealer to grant the exemption, and Congress has provided stores; and through mail order catalogs. Applicant that the exemption should only be granted where also engages in various nonbanking activities in­ such action would not be substantially at variance cluding offering various forms of group credit life with the purposes of the Act. Accordingly, the and health insurance, leasing of motor vehicles, Board has exercised this authority only in a limited and real estate development. Applicant acquired number of circumstances and in those instances control of Bank in November 1967, and has where the bank was in generally sound financial maintained its control of Bank since that time. condition and was properly serving its community, Bank’s total assets are $17.9 million, equal to and the holding company had not abused its rela­ about 3 per cent of Applicant’s consolidated tionship with the bank. In this case, however, the assets. Bank accounts for .5 per cent of Appli­ Board does not regard the manner in which Appli­ cant’s after tax income and .06 per cent of its cant has conducted itself with respect to Bank as revenue.2 Bank has deposits of $14.2 million, evidencing clearly that the granting of the § 4(d) representing .2 per cent of all commercial bank exemption would be appropriate or in the public deposits in the Minneapolis-St. Paul SMSA (the interest. relevant banking market), wherein Bank ranks as As noted above, Section 4(d) sets forth the the 42nd largest of 123 banking organizations criteria upon which the Board may grant the ex­ competing in that market.3 Also competing in the emption from the nonbanking prohibitions of the Act. It appears that Applicant may qualify under the third criterion, namely, that Bank is small in 1Fortune, “The Fifty Largest Retailing Companies (ranked relation to the holding company’s total interests by sales and assets)”, page 120 (July 1974). 2A11 financial data are as of December 31, 1972. and small in relation to the banking market to be 3All market data are as of June 30, 1974. served. However, with respect to either the first Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 255 or second criterion, it is clear the relationship with By order of the Board of Governors, effective Bank has not existed over a long period of years March 17, 1975. (Bank was acquired by Applicant in November Voting for this action: Chairman Bums and Gover­ 1967) and Applicant is not so uniquely repre­ nors Mitchell, Sheehan, Bucher, Holland, Wallich, and sentative of community interests that sale of Bank Coldwell. would result in an adverse effect upon the com­ (Signed) G riffith L. G arwood, munity.4 [seal] Assistant Secretary of the Board. Turning our attention specifically to Applicant’s operation of Bank, the Board notes that Bank is in generally satisfactory condition. Nevertheless, Bank’s overall operation under the direction of Applicant cannot be characterized as being entirely ORDER UNDER BANK MERGER ACT in the public interest. In particular, it is noted that Bank has not been an aggressive lending organi­ Iowa State Bank and Trust Company, zation in serving the needs of the public. Its loan Fairfield, Iowa to deposit ratio (exclusive of Federal Funds sold)5, Order Denying Acquisition of Assets of Bank as of year-end 1973, is 23.8 per cent (31.2 per cent as of June 30, 1974), compared with a ratio Iowa State Bank and Trust Company, Fairfield, of 57.7 per cent for all 9th Federal Reserve District Iowa (“Iowa Bank”), a member State bank of member banks with deposits of $10-$25 million. the Federal Reserve System, has applied for the Other facts of record also support the view that Board’s approval pursuant to the Bank Merger Act Bank is not an aggressive lending institution.6 In (12 U.S.C. § 1828(c)) of the acquisition of the addition, it appears that the resources of Bank assets and assumption of the liabilities of Farmers have, in fact, been used to further the other inter­ Savings Bank, Packwood, Iowa (“Farmers ests of Applicant. Bank maintains substantial bal­ Bank”). As an incident to the proposal, the present ances at its correspondent banks as compensating office of Farmers Bank would become a branch balances on lines of credit granted to Applicant of Iowa Bank. by those banks. While Applicant does compensate As required by the Act, notice of the proposed Bank for maintaining these balances, it still re­ transaction, in form approved by the Board, has mains that a substantial portion of Bank’s re­ been published and the Board has requested reports sources are being used for the benefit of Applicant on competitive factors from the Attorney General, rather than the community at large. Other evidence the Comptroller of the Currency, and the Federal of record also suggests that Applicant has directed Deposit Insurance Corporation. The Board has the operations and policies of Bank so as to benefit considered the application and all comments and Applicant and its employees rather than the public reports received in light of the factors set forth for which it was established. Accordingly, the in the Act. Board concludes that Applicant has not demon­ The relevant geographic market in this case is strated that an exemption is warranted under the approximated by Jefferson County and the Rich­ provisions of § 4(d) of the Act. land portion of Keokuk County. Iowa Bank is On the basis of the foregoing and other consid­ located in Fairfield, the county seat of Jefferson erations reflected in the record, it is the Board’s County. Fairfield is the shopping and commercial judgment that approval of this application for an center of Jefferson County. Farmers Bank is lo­ exemption from the Act’s restrictions relating to cated in northwest Jefferson County, and is 15 nonbanking activities and acquisitions would not miles distant from the nearest office of Iowa Bank. be in the public interest, and the application should Customers of Farmers Bank shop and work in be, and is hereby, denied. Fairfield. Accordingly, Iowa Bank is a convenient banking alternative for those customers. The record indicates that a significant amount of bank­ ing business of Iowa Bank is done with customers 4See Board Order approving the application of Milton Hershey School and School Trust, Hershey, Pennsylvania, for an located in the service area of Farmers Bank. Con­ exemption under Section 4(d) of the Act (1972 Federal Reserve versely, the record indicates that a significant Bulletin 319). amount of banking business of Farmers Bank 5Total of Federal Funds sold as of year-end 1973 was $5.8 million, compared with a loan volume of $3.8 million. derives from customers located in Iowa Bank’s 6The loan to asset ratios for year-end 1973 are as fol­ service area. lows: Bank 37.8 per cent; all 9th Federal Reserve District Iowa Bank, with deposits of roughly $17.5 member banks with deposits of $10-$25 million, 54.5 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin □ April 1975 million,1 is the second largest of five banks in the The financial and managerial resources and fu­ relevant banking market, and controls approxi­ ture prospects of Iowa Bank are satisfactory. mately 36.2 per cent of the total deposits in com­ Farmers Bank does appear to have a management mercial banks in the market. The largest bank in succession problem that would be alleviated by the relevant market controls approximately 41.8 consummation of the proposed transaction. There­ per cent of market deposits. Farmers Bank, with fore, banking factors are consistent with approval deposits of roughly $3.7 million, is the fourth of the application. While community needs for largest bank in that banking market, and controls banking services are not going unmet, consumma­ approximately 7.7 per cent of market deposits. tion would provide a source in Farmers Bank’s Consummation of the acquisition, therefore, service area for large loans that presently exceed would eliminate one of the limited number of Farmers Bank’s lending limit. While these benefits competitors in the market, result in Iowa Bank might serve the convenience and needs of the controlling approximately 43.9 per cent of the relevant area, they would not outweigh the adverse deposits, and thereby increase the already high effects this propo al would have on competition level of concentration of banking resources in the in the relevant m; ket. Further, the parties to the market. Also, existing competition between Iowa proposed transaction have not satisfied their burden Bank and Farmers Bank would be eliminated by of demonstrating the absence of less anticompeti­ the proposed acquisition. The effect of the tive means to achieve such benefits to the conven­ proposed transactions would be a substantial les­ ience and needs of the community to be served. sening of competition in the relevant market. In On the basis of all relevant facts contained in its considerations of this application, the Board the record, and in light of the factors set forth regards such a lessening of competition as an in the Bank Merger Act (12 U.S.C. § 1828(c)), adverse factor. it is the Board’s judgment that the anticompetitive On the basis of the foregoing and the other effects of the proposed acquisition are not clearly factors in the record, the Board concludes that the outweighed in the public interest by the probable proposal would increase the level of banking con­ effect of the transaction in meeting the conven­ centration to an undesirable level, and eliminate ience and needs of the community to be served. existing competition between the institutions in­ The Board concludes, therefore, that the proposed volved. Accordingly, under § 1828(c), unless such transaction is not in the public interest and, ac­ anticompetitive effects are clearly outweighed in cordingly, the application is hereby denied. the public interest by the probable effect of the By the order of the Board of Governors, effec­ transaction in meeting the convenience and needs tive March 19, 1975. of the community to be served, the statute requires Voting for this action: Vice Chairman Mitchell and denial of the application. Governors Sheehan, Bucher, and Wallich. Absent and not voting: Chairman Burns and Governors Holland and Coldwell. (Signed) Theodore E. A llison, *A11 banking data are as of June 30, 1974. [seal] Secretary of the Board. ORDERS NOT PRINTED IN TH IS ISSUE ORDERS APPROVED BY THE BOARD OF GOVERNORS During March 1975, 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 257 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 Cullen Bankers, Inc., Cullen Center Bank & 3/31/75 40 F.R. 15453 Houston, Texas Trust, Houston, Texas 4/7/75 and Citizens National Bank of Dallas, Dallas, Texas Frontier Bancorporation Frontier Bank of Denver, 3/26/75 40 F. R. 15010 of Denver, Inc., Denver, Denver, Colorado 4/3/75 Colorado 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 Barnett Banks of Florida, First Marine Bank 3/5/75 40 F.R. 11816 Inc., Jacksonville, of Fort Lauderdale, 3/13/75 Florida Fort Lauderdale, Florida First International San Jacinto State 3/25/75 40 F. R. 15009 Bancshares, Inc., Bank, Pasadena, 4/3/75 Dallas, Texas Texas Helmerich & Payne, Inc., Utica Bankshares 3/3/75 40 F.R. 11647 Tulsa, Oklahoma Corporation, Tulsa, 3/12/75 Oklahoma Mercantile Bancorporation, Bank of Eldon, 3/6/75 40 F.R. 11818 Inc., St. Louis, Missouri Eldon, Missouri 3/13/75 New England Merchants The Fall River 3/10/75 40 F.R. 12329 Company, Inc., Boston, National Bank, 3/18/75 Massachusetts Fall River, Massachusetts PanNational Group Inc., The First National 3/31/75 40 F.R. 15455 El Paso, Texas Bank of Waco, Waco, 4/7/75 Texas Sun Banks of Florida, Sun Bank of Seminole, 3/21/75 40 F.R. 14376 Inc., Orlando, Florida Altamonte Springs, 3/31/75 Florida ORDER UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY ACT— APPLICATION TO MERGE BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation American Bankcorp, Inc., Mid-America Fidelity 3/21/75 40 F.R. 14374 Lansing, Michigan Corporation, Ann 3/31/75 Arbor, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin □ April 1975 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation BankAmerica Corporation, BA Insurance Agency, 3/14/75 40 F.R. 13042 San Francisco, California San Francisco, Cali­ 3/24/75 fornia First Alabama Bancshares, First Alabama Life In­ 3/17/75 40 F.R. 13045 Inc., Montgomery, Alabama surance Company, 3/24/75 Phoenix, Arizona First Tennessee National Pioneer Bank, Chattanoo­ 3/12/75 40 F.R. 12715 Corporation, Memphis, ga, Tennessee; and 3/20/75 Tennessee Valley Company, Chattanooga, Tennessee MorAmerica Financial Cor­ Bezanson Investments 3/10/75 40 F.R. 12329 poration, Cedar Rapids, Inc., Cedar Rapids, 3/18/75 Iowa Iowa Northwestern Financial Cor­ Northwestern Finance 3/19/75 40 F.R. 14121 poration, North Wilkesboro, Company, North 3/28/75 North Carolina Wilkesboro, North Carolina Walther E. Heller International Lakeshore Commercial 3/14/75 40 F.R. 13047 Corporation, Chicago, Finance Corporation, 3/24/75 Illinois Milwaukee, Wisconsin ORDERS APPROVED BY THE SECRETARY OF THE BOARD During March 1975, applications were approved by the Secretary of the Board 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 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 American Bancshares, Inc., American Bank of 3/3/75 40 F.R. 11646 Tulsa, Oklahoma Oklahoma, Pryor 3/12/75 Creek, Oklahoma B.O.C. Corporation, Bank of Commerce, 3/11/75 40 F.R. 12713 Sheridan, Wyoming Sheridan, Wyoming 3/20/75 Capital City Bancshares, Inc., Capital City State 3/5/75 40 F.R. 11818 Prairie Village, Kansas Bank & Trust Company, 3/13/75 Topeka, Kansas Darien Bancorporation, Inc., The Farmers State 3/31/75 40 F.R. 15454 Darien, Wisconsin Bank, Darien, 4/7/75 Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 259 ORDER UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATION FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Mercantile Bancorporation United Bank of 3/14/75 40 F.R. 13048 Inc., St. Louis, Missouri Macon, Macon, 3/24/75 Missouri ORDER UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATION TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation FCB Life Insur­ First Commercial Banks, Inc., ance, Ltd., 3/31/75 40 F.R. 15454 Albany, New York Phoenix, Arizona 4/7/75 ORDERS APPROVED BY FEDERAL RESERVE BANKS During March 1975, 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. ORDER UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATION TO ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Reserve Effective Register Applicant (or activity) Bank date citation Burlingame Bankshares, First State Kansas City 3/5/75 40 F.R. 12329 Inc., Burlingame, Insurance 3/18/75 Kansas Agency, Burlingame, Kansas ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT- APPLICATIONS TO FORM BANK HOLDING COMPANY AND ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Chetopa State Banc­ Chetopa State Sale of Kansas City 3/13/75 40 F.R. 13043 shares, Inc., Bank & Trust general 3/24/75 Coffeyville, Kansas Co., Chetopa, lines of Kansas insurance Stapleton Investment Bank of Sta­ Burnham Kansas City 3/13/75 40 F.R. 13049 Co., Stapleton, pleton, Insurance 3/24/75 Nebraska Stapleton, Agency Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Announcements APPROVAL OF MIAMI BRANCH on Time Deposits) to prohibit member banks from issuing NOW accounts (interest-bearing savings The Board of Governors of the Federal Reserve accounts from which check-like withdrawals can System announced on March 27, 1975, its ap­ be made) to governmental units effective May 16. proval of a proposal by the Federal Reserve Bank Accounts established prior to May 16, 1975, of Atlanta to establish a branch office at Miami, may be maintained through December 31, 1975. Florida. A Federal Reserve facility for check collection RESERVE REQUIREMENT ON and for distribution of currency and coin has been FOREIGN BORROWINGS in operation in Miami since mid-1971. This facil­ ity—to be designated a branch—will expand its The Board of Governors on April 9, 1975, an­ operations in phases to include the maintenance nounced a reduction from 8 per cent to 4 per cent of member bank reserve accounts and a fiscal in the reserve requirement on foreign borrowings agency function for the sale of Treasury securities. of member banks, primarily Euro-dollars. The additional functions will begin later this This action will bring the Euro-dollar reserve year at a date to be announced by the Federal requirement into better alignment with reserve Reserve Bank of Atlanta. requirements on the time and savings deposits of The new branch will be the first established by domestic residents and may strengthen the position the Federal Reserve since 1927 when offices were of the U.S. dollar in the foreign exchange markets. opened at San Antonio (July 5) and Charlotte The reduction will affect reserves that must be (December 1). The branch will provide service for maintained against Euro-dollar borrowings in the the same area now served by the Miami facility— 4-week period beginning May 22. The actual re­ the 13 southern Florida counties of Broward, serve will be based on the level of borrowings Charlotte, Collier, Dade, Glades, Hendry, Indian during the period from April 10 through May 7. River, Lee, Martin, Monroe, Okeechobee, Palm The action will reduce required reserves by about Beach, and St. Lucie. $65 million. In authorizing the establishment of the branch, Also affected by the action are foreign-owned the Board noted the rapid growth that has occurred banking institutions that have voluntarily main­ in recent years in southern Florida. The estimated tained a reserve requirement on Euro-dollar bor­ population of the Miami metropolitan area is about rowings since mid-1973. The Board had originally 1.45 million persons compared with approximately requested the voluntary action during a period of 1.12 million in 1968. There are currently more monetary restraint. Although current monetary than 260 commercial banks in the area to be served policy is not directed toward credit restraint, the by the branch compared with about 150 banks Board believes it is important that banking institu­ when the Miami facility was authorized in 1970. tions operating in the United States receive parallel The new branch will be the 25th to be operated treatment with respect to maintaining reserves on by the 12 Federal Reserve Banks. In addition, the increases in their Euro-dollar borrowings. There­ Federal Reserve operates separate check process­ fore, the Board has requested the foreign-owned ing centers at Lewiston, Maine; Windsor Locks, institutions to maintain a voluntary reserve of 4 Connecticut; Cranford, New Jersey; Jericho, New per cent against increases in net foreign borrow­ York; Columbia, South Carolina; Columbus, ings that exceed the average of such borrowings Ohio; Indianapolis, Indiana; Des Moines, Iowa; during May 1973. and Milwaukee, Wisconsin. The reduction in the voluntary reserve from 8 per cent to 4 per cent will release about $ 15 million in reserves. A reserve requirement on Euro-dollar AMENDMENT TO REGULATION Q borrowings by member banks was originally es­ The Board of Governors on April 14, 1975, an­ tablished in 1969. The reserve ratio has been 8 nounced an amendment to Regulation Q (Interest per cent since May 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 261 TELEPHONE USE IN BANKING Board, Office of Managing Director for Research and Economic Policy, effective April 7, 1975. On April 7, 1975, the Board of Governors author­ The Board also announced the temporary ap­ ized member banks to permit use of the telephone pointment of Mr. Robert Smith III, Assistant Vice by their customers to withdraw funds from their President and Assistant Secretary, Federal Reserve savings accounts or to transfer funds from a sav­ Bank of Dallas, as an Assistant Secretary of the ings account. This action rescinded a policy in Board. Mr. Smith received a B.S. from Texas A effect since 1936. & M University. He joined the Federal Reserve The Board has studied the telephone withdrawal Bank of Dallas in 1968, was named Assistant systems currently being developed by several Secretary in 1972, and became Assistant Vice member banks and feels that the security and President for Public Information and Assistant recordkeeping devices made possible by new Secretary in 1974. Mr. Smith served as Secretary technology and incorporated into these systems of the Conferences of Presidents and First Vice will keep errors and unauthorized use to a mini­ Presidents of the Federal Reserve Banks in mum. Further, the Board recognizes that the tele­ 1973-74. phone has become an accepted medium for trans­ mitting financial data and that the telephone merely FEDERAL RESERVE BANK AND provides the customer with an additional method BRANCH DIRECTOR CHANGES of communicating instructions regarding his ac­ count to his bank. Thus, the Board’s action will Frank A. Jones, Jr., President, Cook Industries, permit member banks to offer more convenient Inc., Memphis, Tennessee, was appointed a banking services to their customers. director of the Memphis Branch of the Federal Reserve Bank of St. Louis, effective March 3, SPEED-UP OF PUBLICATION 1975, to succeed C. Whitney Brown, President, OF POLICY RECORDS S. C. Toof & Company, Memphis, Tennessee, whose term as a director expired December 31, The Federal Open Market Committee announced 1974. on March 24, 1975, that it had voted to speed Cornell C. Maier, President and Chief Execu­ up publication of the records of policy actions tive Officer, Kaiser Aluminum and Chemical Cor­ taken at each of its monthly meetings. poration, Oakland, California, was appointed a At its meeting of March 18, the Committee director of the Federal Reserve Bank of San Fran­ revised its Rules Regarding the Availability of cisco, effective March 11, 1975, to succeed Mas Information to reduce the delay between a meeting Oji, President, Oji Brothers Farm, Inc., Yuba and the publication of the information regarding City, California, whose term as a director expired the domestic policy directive from approximately December 31, 1974. 90 days to approximately 45 days. Lloyd E. Cooney, President, KIRO, Inc., Seat­ A delay of approximately 90 days had been in tle, Washington, was appointed a director of the effect since mid-1967 when the rules were changed Seattle Branch of the Federal Reserve Bank of San to comply with the Freedom of Information Act. Francisco, effective February 20, 1975, to succeed Prior to 1967, the records of policy actions were Robert C. Whitwam, President, American Na­ published only in the Board’s Annual Reports to tional Bank of Edmonds, Edmonds, Washington, Congress. whose term as a director expired December 31, In the light of experience, the Committee de­ 1974. cided that a delay as long as 90 days was no longer necessary to avoid an unacceptable degree of risk ADMISSION OF STATE BANKS TO that speculators would be able to take unfair ad­ MEMBERSHIP IN THE vantage of the information or that market reactions FEDERAL RESERVE SYSTEM would impair the effectiveness of the Committee’s functions. The following banks were admitted to membership in the Federal Reserve System during the period CHANGES March 16, 1975, through April 15, 1975: IN BOARD STAFF Florida The Board of Governors announced the transfer South Venice......................South County Bank of Normand R. V. Bernard, Assistant Secretary, Virginia Office of the Secretary, to Special Assistant to the Stephens City.........Bank of Frederick County Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Industrial Production Released for publication April 15 equipment parts, paper, and chemical materials all declined. Materials production is currently about Industrial production declined further in March to one-fifth below the level reached last autumn, 109.6 per cent of the 1967 average—1.0 per cent while output in final goods industries has declined below the February index, which was revised about 10 per cent. upward, and 12.1 per cent below a year earlier. The drop in March was substantially smaller than INDUSTRIAL PRODUCTION Seasonally adjusted, ratio scale, 1967*100 those in each of the preceding 4 months. Consumer MATERIAILS goods output rose slightly for the first time since last summer, and the decline in materials produc­ ‘----'tesr. f P t R0 1 DUC1S’ 1' ~ tion, although large, was less than in recent ....n I t v . l 1 T0TAL 1 months. Output in the consumer goods industries in­ creased 0.6 per cent in March, as auto assemblies rose 24 per cent to an annual rate of 5.6 million units. Although unit sales of new domestic autos declined following the termination of most rebate programs, sales exceeded output in March and dealers’ stocks were reduced somewhat further. Production of other durable goods was little changed, after having fallen rapidly since its peak in mid-1974. Output of nondurable goods, which has dropped more moderately, also changed little in March. However, production of business equipment continued to drop sharply and was 12 per cent below the September 1974 high. Production of industrial materials declined fur­ ther with widespread reductions in both durable F.R. indexes, seasonally adjusted. Latest figures: March. and nondurable goods materials. Output of metals, * Auto sales and stocks include imports. Seasonally adjusted Per cent 1967 = 100 changes from— Per cent changes, annual rate Industrial production 1975 1974 1975 Month Year ago ago Jan. Feb.p Mar.*’ Q3 Q4 Ql Total .......................................................... 113.7 110.7 109.6 -1.0 -12.1 - .3 -13.1 -33.0 Products, total .................................................. 115.6 113.2 112.2 - .9 - 8.5 .6 - 8.7 -24.1 Final products .............................................. 115.1 112.8 112.2 - .5 - 7.3 2.0 - 6.5 -23.6 Consumer goods ..................................... 120.6 118.0 118.7 .6 - 7.6 0 -10.8 -21.9 Durable goods ................................... 104.2 100.2 103.1 2.9 -19.8 -4.5 -37.0 -54.9 Nondurable goods ........................... 126.9 124.8 124.7 - .1 - 3.1 2.2 - 1.2 - 9.9 Business equipment ............................. 121.9 119.5 116.7 -2.3 - 8.5 4.0 - 2.4 -32.6 Intermediate products ............................... 117.5 114.5 112.3 -1.9 -12.3 -3.7 -15.9 -26.4 Construction products ......................... 116.9 112.7 110.5 -2.0 -14.7 -7.7 -21.6 -25.1 Materials .............................................................. 110.5 106.5 104.9 -1.5 -18.6 - .9 -21.5 -47.0 ''Preliminary. ''Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial and Business Statistics CO N TEN TS GUIDE TO TABULAR PRESENTA­ A 48 Industrial production TION ON INSIDE BACK COVER A 50 Business activity A 50 Construction STATISTICAL RELEASES: REFER­ A 52 Labor force, employment, aw/ ENCE ON INSIDE BACK COVER unemployment A 53 Consumer prices U.S. STATISTICS A 53 Wholesale prices A 54 National product and income A 2 Member bank reserves, Federal A 56 FZou> o/ funds Reserve Bank credit, and related items A 5 Federal funds—Money market banks INTERNATIONAL STATISTICS: A 6 Reserve Bank interest rates A 1 Reserve requirements A 58 U.S. balance of payments A 8 Maximum interest rates; margin A 59 Foreign trade requirements A 59 U.S. reserve assets A 9 Open market account A 60 Gold reserves of central banks and A 10 Federal Reserve Banks governments A ll Bank debits A 61 International capital transactions of the A 12 Money stock United States A 13 Bank reserves; bank credit A 74 Open market rates A 14 Commercial banks, by classes A 75 Central bank rates A 18 Weekly reporting banks A 75 Foreign exchange rates A 23 Business loans of banks A 24 Demand deposit ownership TABLES PUBLISHED PERIODICALLY A 25 Loan sales by banks A 25 Open market paper A 76 Number of banks and branches in A 26 Interest rates operation on December 31, 1974 A 29 Security markets Banking and monetary statistics, 1974: A 29 Stock market credit A 78 Assets and liabilities of large A 30 Savings institutions commercial banks A 32 Federal finance A 83 Commercial and industrial loans of A 34 U.S. Government securities large commercial banks A 37 Federally sponsored credit agencies A 85 ‘‘Term” commercial and industrial A 38 Security issues loans of large commercial banks A 41 Business finance A 42 Real estate credit A 92 INDEX TO STATISTICAL TABLES A 45 Consumer credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 BANK RESERVES AND RELATED ITEMS a APRIL 1975 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, securities1 Special ury Drawing cur­ Gold Rights rency Held Other stock certificate out­ Bought under Loans Float 3 F.R. Total5 account stand­ Total out­ repur­ assets 4 ing right2 chase agree­ ment Averages of daily figures 1939—Dec............................. 2,510 2,510 83 2,612 17,518 2,956 1941—Dec............................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec............................. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec............................. 20,345 20,336 142 1,117 21,606 22,879 4,629 1960—Dec............................. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 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—De c 79,701 78,833 868 1,298 3,414 1,079 85,642 11.567 400 8,668 1974—Ma r 80,686 80,184 502 1,352 1,816 960 84,943 11.567 400 8,767 Apr.............................. 81,567 80,873 694 1,714 2,295 1,160 86,907 11.567 400 8,807 May............................ 83,434 82,037 1,397 2,580 2,025 1,093 89,405 11.567 400 8,838 June............................ 82,812 81,859 953 3,000 2,114 1,106 89,254 11.567 400 8,877 July............................. 84,313 83,496 817 3,308 2,267 1,343 91,554 11.567 400 8,905 Aug............................. 84,493 84,221 272 3,351 1,983 1,258 91,367 11.567 400 8,951 Sept............................. 84,384 84,049 335 3,287 2,239 1,349 91,617 11.567 400 8,992 Oct.............................. 83,735 83,303 432 1,793 2,083 2,984 90,971 11.567 400 9,041 Nov............................. 84,052 83,395 657 1,285 2,409 3,171 91,302 11.567 400 9,113 Dec.............................. 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—Ja n 86,039 85,369 670 390 2,456 3,391 93,002 11,647 400 9,235 Feb.............................. 84,744 83,843 901 147 2,079 3,419 91,168 11,626 400 9,284 Mar.P................... 84,847 84,398 449 106 2,012 3,142 90,837 11,620 400 9,362 Week ending— 1975—Jan. 1..................... 87,903 85,746 2,157 561 3.261 3,205 95,962 11.652 400 9,221 8..................... 86,317 85,587 730 311 3,439 3,291 94,058 11.652 400 9,216 15..................... 85,520 85,381 139 609 2,601 3,309 92,672 11.652 400 9,235 22..................... 86,105 85,191 914 594 2,101 3,443 92,757 11.652 400 9,239 29..................... 86,341 85,448 893 142 1,978 3,490 92,742 11,635 400 9,246 Feb. 5..................... 85,613 84,999 614 98 2,128 3,839 92,509 11,634 400 9,267 12....................... 83,801 83,111 690 90 1,987 3,680 90,301 11,628 400 9,271 19....................... 84,255 83,357 898 229 1.993 3,396 90,633 11,624 400 9,276 26....................... 85,376 84,148 1,228 180 2.261 2,933 91,533 11,621 400 9,303 Mar. 5....................... 85,505 84,207 1,298 70 1,666 3,071 91,159 11,621 400 9,352 12....................... 82,658 82,658 60 2,098 3,085 88,571 11,620 400 9,341 19....................... 83,345 83,345 167 1.993 3,217 89,381 11,620 400 9,344 26....................... 86,867 85,854 1,013 155 1,697 3,197 92,731 11,620 400 9,386 End of month 1975—Jan................................ 86,134 85,076 1,058 103 1,466 3,518 92,187 11,635 400 9,305 Feb................................ 86,416 84,152 2,264 77 1,370 3,005 91,861 11,621 400 9,371 Mar.?........................... 86,608 86,608 59 1,734 3,072 92,138 11,620 400 9,396 Wednesday 1975—Jan. 1....................... 85,714 84,760 954 299 2,001 3,195 92,208 11.652 400 9,253 8....................... 82,726 82,726 126 3,168 3,460 90,074 11.652 400 9,235 15....................... 85,176 85,048 *128* 2,893 2,865 3,493 95,097 11.652 400 9,237 22....................... 89,306 85,325 3,981 2,444 2,537 3,928 99,198 11.652 400 9,242 29....................... 86,305 85,141 1,164 159 2,638 3,598 93,579 11,635 400 9,264 Feb. 5....................... 83,909 83,909 89 5,302 4,665 94,632 11,629 400 9,270 12....................... 86,154 83,741 2,413 117 2,387 3,580 93,180 11,625 400 9,275 19....................... 83,976 83,976 1,126 3,339 2,984 92,061 11,621 400 9,281 26....................... 86,886 84,121 ‘2,165 834 2,357 2,740 93,696 11,621 400 9,334 Mar. 5....................... 83,282 83,282 58 2,561 3,156 89,733 11,620 400 9,339 12....................... 80,626 80,626 87 2,306 3,170 86,856 11,620 400 9,343 18....................... 83,955 83,955 854 2,637 3,161 91,262 11,620 400 9,348 26 ..................... 88,078 85,991 2,087 814 2,045 3,139 95,104 11,620 400 9,389 1 Includes Federal agency issues held under repurchase agreements on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10. beginning Dec. 1, 1966, and Federal agency issues bought outright be­ See also note 3. ginning Sept. 29, 1971. 6 Includes certain deposits of domestic nonmember banks and foreign- 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. owned banking institutions held with member banks and redeposited in Govt, securities pledged with F.R. Banks, and excludes (if any), securities full with F.R. Banks in connection with voluntary participation by non­ sold and scheduled to be bought back under matched sale-purchase member institutions in the Federal Reserve System’s program of credit transactions. restraint. 3 Beginning with 1960 reflects a minor change in concept; see Feb. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign 1961 Bulletin, p. 164. agency and branch deposits at F.R. Banks that are associated with margi­ 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. nal reserves are no longer reported. However, deposits voluntarily held liabilities and capital” are shown separately; formerly, they were netted by agencies and branches of foreign banks operating in the United States together and reported as “Other F.R. accounts.” as reserves and Euro-dollar liabilities are reported. 5 Includes industrial loans and acceptances until Aug. 21, 1959, when Digitized for FRinAdSuEstrRia l loan program was discontinued. For holdings of acceptances Notes continued on opposite page. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BANK RESERVES AND RELATED ITEMS A 3 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions of dollars) Factors absorbing reserve funds Desposits, other than member bank Member bank Cur­ Treas­ reserves Other reserves rency ury with F.R. Banks Other F.R. Period or date in cash F.R. lia­ cir­ hold­ ac­ bilities cula­ ings counts4 and With tion Treas­ For­ Other 3,6 capital4 F.R. rency Totals ury eign Banks and Averages of daily figures 7,609 2,402 616 7:*9 248 11,473 11,473 .1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 . 1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 57,013 427 849 145 735 2.265 23,925 5,340 29,265 .1970—Dec. 61,060 453 1 .926 290 728 2,287 25,653 5,676 31,329 .1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 .1972—Dec. 71,646 323 1,892 406 717 2,942 28,352 6,635 35,068 .1973—Dec. 71,081 334 1,803 311 699 2,998 28,450 6,450 34,966 .1974—Mar. 72,176 308 1,712 328 702 2,985 29,469 6,402 35,929 .............Apr. 72,876 286 3,000 320 699 3,168 29,861 6,600 36,519 .............May 73,749 293 2,015 491 691 3,187 29,672 6,668 36,390 ..............June 74,556 275 2,795 296 773 3,216 30,514 6,824 37,338 .............July 74,709 283 2,633 326 831 3,240 30,264 6,765 37,029 .............Aug. 75,098 303 2,451 456 766 3,345 30,156 6,920 37,076 .............Sept. 75,654 315 1,601 294 869 3,260 29,985 6,811 36,796 .............Oct. 77,029 302 864 370 770 3,149 29,898 6,939 36,837 .............Nov. 78,951 220 1,741 357 874 3.266 29,767 7,174 36,941 .............Dec. 77,780 221 2,087 336 884 3,264 29,713 7,779 37,492 . 1975—Jan. 76,979 236 2,374 317 711 3,358 28,503 7,062 35,565 .............Feb. 77,695 274 1,887 363 958 3,076 27,966 6,838 34,804 ..........Mar.p Week ending— 79,655 189 2,606 333 896 3,339 30,218 7,370 37,588 . 1975—Jan. 1 78,922 192 1,850 324 986 3,071 29,981 7,331 37,312 78,191 226 1,352 446 901 3,194 29,652 8,555 38,207 .15 77,431 244 1,618 279 828 3,366 30,482 7,783 38,265 .22 76,666 252 3,005 272 798 3,395 29,635 7,605 37,240 .29 76,456 246 2,634 342 848 3,741 29,543 7,431 36,974 .Feb. 5 77,052 239 1,492 270 634 3,342 28,573 7,456 36,029 ........ 12 77,298 234 1,960 364 612 3,162 28,304 6,814 35,118 ...........19 76,964 240 3,489 300 703 3,239 27,920 6,686 34,606 ...........26 77,022 255 2,845 340 988 3,238 27,845 6,950 34,795 .Mar. 5 77,715 258 590 309 923 2,952 27,186 7,296 34,482 ...... 12 77,874 272 386 332 994 3,006 27,883 6,627 34,510 .........19 77,767 294 3,424 376 843 3,088 28,345 6,488 34,833 .........26 End of month 76,343 250 3,540 391 748 3,415 28,839 7,431 36,270 . 1975—Jan. 76,834 254 2,884 409 901 3,326 28,644 6,950 35,594 .............Feb. 78,007 307 4,269 402 709 3,120 26,740 6,847 33,587 ..........Mar.p Wednesday 79,743 185 3,113 418 1,275 2,935 25,843 7,370 33,213 ........1975—Jan. 1 78,710 235 741 381 766 3,058 27,470 7,331 34,801 77,946 240 1,366 950 731 3.232 31,922 8,555 40,477 .15 77,136 261 1,857 230 906 . 3,618 36,484 7,783 44,267 .22 76,638 261 3,442 334 708 . 3,446 30,049 7,605 37,654 .29 76,860 249 779 277 732 . 4,859 32,175 7,431 39,606 .Feb. 5 77,493 236 1,308 250 683 . 3,174 31,336 7,456 38,792 ........ 12 77,408 230 3,040 319 700 3.232 28,434 6,814 35,248 ...........19 77,053 238 3,187 271 851 3,229 30,223 6,686 36,909 ...........26 77,474 261 956 277 867 2,951 28,308 6,950 35,258 .Mar. 5 78,058 271 * 314 989 . 2,893 25,695 7,296 32,991 ........ 12 77,980 297 1,795 321 870 2,971 28,396 6,627 35,023 ........19 78,033 306 3,554 428 792 3,080 30,320 6,488 36,808 .........26 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies thereafter. Beginning Jan. 1963, figures are estimated except for weekly included are (beginning with first statement week of quarter): Ql, $279 averages. Beginning Sept. 12, 1968, amount is based on close-of-business million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning figures for reserve period 2 weeks previous to report date. 1974, Ql, $67 million, Q2, $58 million. Transition period ended after 8 Beginning with week ending Nov. 15, 1972, includes $450 million of second quarter, 1974. reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS □ APRIL 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 nks Reserves Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess rowheld i quired sonal ings ings igs 11,473 6,462 5,011 3 2,611 540 1,188 3 12,812 9,422 3,390 5 989 295 1,303 4 16,027 14,536 1,491 334 48 192 14 418 46 17,391 16,364 1,027 142 125 58 8 5 232 29 19,283 18,527 756 87 29 19 4 8 100 40 22,719 22,267 452 454 41 111 15 23 67 92 25,260 24,915 345 238 18 40 8 13 50 80 27,221 26,766 455 765 100 230 15 85 90 180 28,031 27,774 257 1,086 56 259 18 27 6 321 29,265 28,993 272 321 34 25 7 4 42 28 31,329 31,164 165 107 25 35 1 8 -35 42 31,353 31,134 219 1,049 -20 301 13 55 -42 264 35,068 34,806 262 1,298 41 -23 74 43 28 28 435 34,966 34,790 176 1,352 32 21 113 -61 65 43 485 35,929 35,771 158 1,714 50 19 114 69 41 -58 572 36,519 36,325 194 2,580 102 -20 772 29 20 -4 849 36,390 36,259 131 3,000 130 -26 1,303 -8 51 26 847 37,338 37,161 177 3,308 149 45 1,457 19 70 -12 933 37,029 36,851 178 3,351 165 -58 1,464 6 23 78 ,004 37,076 36,885 191 3,287 139 133 1,662 20 17 -77 816 36,796 36,705 91 1,793 117 -49 502 -18 36 36 686 36,837 36,579 258 1,285 67 -8 257 38 14 90 448 36,941 36,602 339 703 32 132 80 5 18 39 282 37,492 37,556 -64 390 13 -119 156 -16 16 -91 131 35,565 35,333 232 147 10 31 37 17 10 41 71 34,804 34,513 291 106 7 -38 22 9 10 -30 45 34,633 34,515 118 912 19 -81 123 13 11 1 414 34,748 34,632 116 983 19 41 11 -8 66 -82 399 35,209 35,129 80 1,483 35 -41 333 -3 15 -36 456 34,774 34,605 169 1,713 43 10 31 40 21 -16 600 37.239 36,918 321 3,906 152 -66 1,729 40 19 171 ,033 36,737 36,628 109 3,084 132 127 1,567 -35 20 -110 731 37,086 37,004 82 2,921 134 -150 1,517 15 16 90 648 36,946 36,872 74 3,531 141 80 1,782 12 10 -93 868 37,533 37,077 456 3,218 i43 67 1,756 9 17 222 913 36,601 36,656 -55 2,245 132 -26 1,245 -20 10 -127 654 37,415 37,088 327 1,744 121 41 219 27 135 99 606 36,456 36,615 -159 1,322 108 -101 148 -12 2 -122 663 36,819 36,576 243 1,638 105 109 96 -9 11 42 801 36,995 36,672 323 1,125 78 54 68 32 105 632 36,479 36,335 144 1,097 70 -15 188 -29 30 40 399 36,812 36,785 27 1,367 64 -16 465 8 29 -87 378 36,769 36,459 310 1,479 63 69 243 27 87 422 36,961 36,678 283 1,070 51 141 226 4 -16 394 36,293 36,452 -159 648 35 -173 73 -36 26 -50 268 36,762 36,545 217 818 31 59 60 23 54 -39 287 36,845 36,416 429 662 29 137 72 52 89 257 37,588 37,011 577 561 24 -8 83 61 223 260 37,312 37,175 137 311 18 55 36 -27 -26 168 38,207 38,249 -42 609 12 -130 317 1 69 -89 115 38,265 38,079 186 594 12 29 328 1 45 136 37.240 37,066 174 142 10 71 -13 -24 109 36,974 36,579 395 98 11 133 33 84 86 36,029 35,970 59 90 10 -37 6 -20 -5 69 35,118 34,960 158 229 11 140 -22 -18 69 34,606 34,447 159 180 10 -15 29 39 35 70 34,795 34,386 409 70 9 117 4 90 60 34,482 34,252 230 60 7 122 15 —20 41 34,510 34,490 20 167 6 -96 88 -37 10 43 34,833 34,680 153 155 7 21 8 41 44 -55 44 c ending Nov. 15, 1972, includes $450 million of for reserve-requirement purposes has been (net ('hich F.R. Banks are allowed to waive penalties demand deposits of more than $400 million) lletin connection with bank adaptation to Regulation J for July 1972, p. 626. Categories shown here her” v. 9, 1972. Beginning 1973, allowable deficiencies parallel the previous “Reserve city” and “Cou ively with first statement week of quarter): Ql, $279 (hence the series are continuous over time). n; Q3, $112 million; Q4, $84 million. Beginning Q2, $58 million. Transition period ended after Note.—Monthly and weekly data are ave ithin >r weeks for which figures are preliminary, figures the month or week, respectively. idd to the total because adjusted data by class are Borrowings at F.R. Banks: Based on closin Effective Apr. 19, 1963, the Board’s Regul. lend- [972, designation of banks as reserve city banks ing by F.R. Banks, was revised to assist smi the seasonal borrowing needs of their commi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ MONEY MARKET BANKS A 5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net- Gross transactions Net transactions Reporting banks and Total Bor­ week ending— Excess Net Per cent two-way Pur­ Loans row­ Net re­ Bor­ inter­ Surplus of Pur­ trans­ chases Sales to ings loans serves 1 rowings bank or avg. chases Sales actions2 of net of net dealers3 from at F.R. Federal deficit required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1975—Feb. 5.......... 177 1 14,481 -14,305 82.2 20,952 6,470 5,631 15,321 839 2,800 809 1,991 12.......... 52 5 16,260 -16,213 94.9 22,136 5,876 5,155 16,982 722 3,635 1,000 2,635 19.......... —41 142 16,440 -16,623 100.2 23,568 7,128 5,949 17,618 1,179 2,727 932 1,795 26.......... -10 74 15,742 -15,826 98.2 21,864 6,122 5,204 16,661 918 2,977 878 2,100 Mar. 5.......... 128 15,962 -15,834 98.2 22,134 6,172 5,203 16,931 969 3,120 765 2,355 12.......... 225 6 18,903 -18,684 116.0 24,585 5,682 5,337 19,248 345 4,717 824 3,893 19.......... -38 106 16,302 -16,446 101.1 21,491 5,189 4,708 16,782 480 4,614 608 4,006 26.......... 29 78 14,639 -14,688 90.8 21,345 6,706 5,373 15,972 1,333 3,233 710 2,523 8 in New York City 1975—Feb. 5.......... 56 5,708 -5,652 77.5 6,985 1,277 1,277 5,708 1,433 473 960 12.......... 34 7,172 -7,138 100.3 7,883 711 710 7,172 1,551 610 942 19.......... 1 135 6,305 -6,439 92.1 7,697 1,392 1,393 6,305 1,331 610 721 26.......... -41 5,825 -5,866 88.9 6,894 1 ,069 1,069 5,825 1,579 541 1,038 Mar. 5.......... 74 6,080 -6,006 90.0 6,867 786 786 6,081 1,466 462 1,004 12.......... 178 7,566 -7,387 109.2 8,379 813 814 7,566 2,123 555 1,568 19.......... -35 5,425 -5,548 81.6 6,395 971 874 5,522 97 1,958 410 1,548 26.......... 20 4,678 -4,664 69.7 6,170 1,492 1,363 4,807 129 1,650 342 1,308 38 outside New York City 1975—Feb. 5.......... 121 8,773 -8,653 85.6 13,967 5,193 4,354 9,613 839 1,368 336 1,031 12.......... 19 9,088 -9,074 91.1 13,254 5,166 4,444 9,809 722 2,084 391 1,694 19.......... -42 10,135 -10,184 106.1 15,870 5,736 4,557 11,314 1,179 1,396 322 1,074 26.......... 30 9,917 -9,961 104.7 14,971 5,053 4,135 10,836 918 1,398 336 1,062 Mar. 5.......... 54 9,882 -9,828 104.0 15,267 5,385 4,417 10,850 969 1,654 304 1,351 12.......... 47 11,338 -11,297 120.9 16,206 4,868 4,524 11,682 345 2,593 269 2,325 19.......... -3 10,877 -10,899 115.1 15,095 4,218 3,835 11,261 384 2,656 198 2,458 26...... 9 9,961 -10,024 105.6 15,174 5,213 4,009 11,165 1,204 1,583 368 1,215 5 in City of Chicago 1975—Feb. 5.......... 3,727 -3,693 193.3 4,573 846 846 3,727 354 354 12.......... 3,500 -3,497 183.4 4,264 765 765 3,500 304 304 19.......... 4,742 -4,767 261.9 5,639 897 897 4,742 300 300 26.......... 39 3,978 -4,002 223.6 4,781 805 803 3,978 254 254 Mar. 5.......... 3,877 -3,866 217.5 4,712 835 835 3,877 280 280 12.......... 4,541 -4,507 257.7 5,303 763 763 4,541 396 396 19.......... 4,065 -4,089 227.5 4,698 633 633 4,065 519 519 26.......... 43 3,800 -3,832 218.5 4,502 702 702 3,800 354 354 33 others 1975—Feb. 5.......... 87 5,046 -4,960 60.5 9,394 4,348 3,508 5,885 839 1,013 336 677 12.......... 16 5,589 -5,577 69.2 9,990 4,401 3,680 6,310 722 1,780 391 1,390 19.......... -16 5,393 -5,416 69.7 10,232 4,838 3,660 6,572 1,179 1,096 322 774 26.......... 15 5,939 -5,959 77.2 10,190 4,251 3,352 6,857 918 1,144 336 Mar. 5.......... 43 6,005 -5,962 77.7 10,555 4,551 3,582 6,973 969 1,375 304 1,071 12.......... 14 6,797 -6,789 89.4 10,903 4,106 3,761 7,142 345 2,198 269 1,929 19.......... 21 6,812 -6,810 88.7 10,397 3,585 3,202 7,196 384 2,137 198 1,940 26.......... -1 6,161 -6,192 80.0 10,672 4,511 3,307 7,365 1,204 1,228 368 861 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 6 F.R. BANK INTEREST RATES □ APRIL 1975 CURRENT RATES (Per cent per annum) Loans to member banks- Under Sec. 10(b)2 Loans to all others under Under Secs. 13 and 13a1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 3/31/75 date rate 3/31/75 date rate 3/31/75 date 3 rate 3/31/75 date rate N C P B R A h l e o i t e c l w i s v a h l t a e n m o d Y la n t o e a n o . l n . . d p . r . . d . . h . k . . . . i . . . a . . . . . . . . . . . . . . 6 6 6 6 6 6 1 V V V * V / 4 4 4 4 4 4 3 3 3 3 3 3 / / / / / / 1 1 1 1 1 1 0 0 0 0 0 0 / / / / / / 7 7 7 7 7 7 5 5 5 5 5 5 6 66 6 6 6 3 3 3 3 3 % ^ 4 4 4 4 6 6 6 6 6 6 3 3 3 3 3 3 / / 4 4 4 4 4 4 3 3 3 3 3 3 / / / / / / 1 1 1 1 1 1 0 0 0 0 0 0 / / / / / / 7 7 7 7 7 7 5 5 5 5 5 5 7 7 7 7 7 7 1 1 1 1 1 1 / / / / 4 4 4 4 4 4 3 3 3 3 3 3 / / / / / / 1 1 1 1 1 1 0 0 0 0 0 0 / / / / / / 7 7 7 7 7 7 5 5 5 5 5 5 8 8 8 8 8 8 1 1 1 1 1 1/ / / / / / 2 2 2 2 2 2 3 3 3 3 3 3 / / / / / / 1 1 1 1 1 1 0 0 0 0 0 0 / / / / / / 7 7 7 7 7 7 5 5 5 5 5 5 9 9 9 9 9 9 1 1 1 1 1 1 / / / / / / 2 2 2 2 2 2 Chicago.......... 6V4 3/10/75 634 634 3/10/75 71/4 3/14/75 81/2 3/14/75 91/2 S M t. i n L n o e u a i p s o .. l .. i . s .. . . . 6 6 1 * / 4 4 3 3 / / 1 1 4 0 / / 7 7 5 5 6 63 3 4 4 6 6 3 3 / 4 4 3 3/ / 1 14 0 / / 7 7 5 5 7 1 1 V / 4 4 3 3 / / 1 1 0 4 / / 7 7 5 5 8 81 1/ /2 2 3 3 / / 1 1 4 0 / / 7 7 5 5 9 9 1 i / / 2 2 Kansas City. . 61/4 3/10/75 634 634 3/10/75 71/4 3/10/75 81/2 3/10/75 91/2 Dallas............, 6V4 3/14/75 634 634 3/14/75 714 3/14/75 81/2 3/14/75 91/2 San Francisco' 61/4 3/10/75 634 63/4 3/10/75 1V4 3/10/75 81/2 3/10/75 91/2 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955........ 21/2 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11..................... 434-5 5 30. 4 4 19..................... 434 434 1956—Apr. 13...................... 21/2-3 234 Dec. 41/2-434 434 20...................... 23/4-3 23/4 1965—Dec. 6, 4 -4i/2 41/2 41/2-434 41/2 Aug. 24...................... 234-3 3 13. 41/2 41/2 24..................... 41/2 41/2 31...................... 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 5 5 1957—Aug. 9...................... 3 -31/2 3 14. 4 4 Feb. 26..................... 5 -51/2 5Vi 23...................... 31/2 31/2 Nov. 20. 4 -4i/2 41/2 Mar. 2..................... 51/2 51/2 Nov. 15...................... 3 -31/2 3 27, 41/2 41/2 Apr. 23..................... 51/2-534 51/2 1958—J D a e n c . . 2 2 2. . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . . . .. . . .. . . . . . 234 3 -3 3 3 1968— A M p a r r . . 2 1 1 9 5 2 , , , 4 5 1/2 - - 5 5 1/2 4 5 51 % /2 May 1 4 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534 6 5 - 3 6 4 6 6 534 24...................... 234-3 234 26, 51/2 51/2 June 11..................... 6 -61/2 6% Mar. 7...................... 214-3 214 Aug. 16, 514-51/2 51/2 15..................... 61/2 61/2 13...................... 214-234 21/4 30, 514 51/4 July 2..................... 7 7 21...................... 214 214 Dec. 18 51/4-51/2 51/2 Aug. 7 -71/2 71/2 A M p a r y . 1 9 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . 1 M IV - 4 214 i 1 y 3A 4 20 , 51/2 51/2 23..................... 71/2 71/2 Aug. 2 15 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . m m 2 - - 2 2 2 2 iy4 1969—Apr. 4 8 51 / 6 2-6 6 6 1974— D Ap ec r. . 2 3 9 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 m 3 8 4 - - s 8 7 8 8 34 O N c o t v . . 2 7 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 21 - /2 21/2 2 2 1/2 1970—Nov. 1 11 3 5 5 3 3 4 4 - - 6 6 5 6 34 16..................... 73/4 734 16 534 534 1975—Jan. 6..................... 71/4-734 73/4 1959—Mar. 6..................... 21/2-3 3 Dec. 1 51/2-53/4 53/4 10..................... 714-734 71/4 16..................... 3 3 4 51/2-53/4 51/2 71/4 71/4 May 29...................... 3 -31/2 31/2 11 51/2 51/2 Feb. 5..................... 634-71/4 634 June 12..................... 31/2 31/2 7..................... 634 634 Sept. 11..................... 31/2-4 4 1971—Jan. 8 514-5ft 51/4 Mar. 10.................... 614-634 614 18..................... 4 4 15 51/4 51/4 14..................... 61/4 614 1960—June 1 3 0. . . . . . . . . .. .. .. .. . . . . . . . . . . . . . . . . . . . . .. .. . 3 3 1 1/ / 2 2- - 4 4 4 31/2 2 2 1 9 2 9 5 5 5 - - 5 5 1 1/ 4 4 5 5 5 1 /4 ■ In effect, Mar. 31,1975.... 614 614 14...................... 31/2 31/2 Feb. 13 434-5 5 S A e u p g t . . 1 9 2. . . .. . . . . .. .. .. .. .. .. . . .. .. .. .. . . .. .. .. .. . 3 3 -31/2 3 3 July 1 1 6 9 4 4 3 3 4 4-5 5 434 1963—July 17..................... 3 -31/2 31/2 23 5 5 26..................... 31/2 31/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, 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

APRIL 1975 □ RESERVE REQUIREMENTS A 7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963........... 161/2 12 4 1966—July 14,21 4 4 5 Sept. 8,15 6 1967—Mar. 2............. 31/2 31/2 .......... Mar. 16 3 3 1968—Jan. 11,18.... 161/2 17 12 121/2 1969—Apr. 17........... 17 171/2 m/2 13 1970—Oct. 1............... 5 Beginning Nov. 9, 1972 Net demand 2,4 Time 3 Other time Effective date 0-2 2-10 10-100 100-400 Over Savings Over 5 5, maturing in— 400 0-5 30-179 180 days days and over 1972—Nov. 9............. 8 10 12 6 I6I/2 171/2 7 3 7 3 75 Nov. 16........... 13 I973—juiy 19............. IO1/2 12^ 131/2 18 1974—Dec 12........... 171/2 6 3 I975—Feb 13........... 71/2 10 12 13 I6I/2 In eff ect Mar. 31,1975 71/2 10 12 13 I6I/2 3 3 6 3 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 member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 8 per cent. The requirement was 10 per cent originally, The requirement applied to balances above a specified base, but was not was increased to 20 per cent on Jan. 7,1971, and was reduced to the current applicable to banks having obligations of these types aggregating less 8 per cent effective June 21, 1973. Initially certain base amounts were than $10 million. For details, including percentages and maturity classifi­ exempted in the computation of the requirements, but effective Mar. 14, cations, see “Announcements” in Bulletins for May, July, Sept., and 1974, the last of these reserve-free bases were eliminated. For details, see Dec. 1973 and Sept. and Nov. 1974. Regulations D and M. 6 The 16 Vi per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 7 See columns above for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ serve cities, and on the same date requirements for reserves against net Note.—Required reserves must be held in the form of deposits with demand deposits of member banks were restructured to provide that each F.R. Banks or vault cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ APRIL 1975 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 July 20, Sept. 26, Apr. 19, Jan. 21, Type and size July 1, Nov. 1, Nov. 27, Dec. 23, of deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits............... Savings deposits....................... Other time deposits:1 Other time deposits (multiple- Multiple maturity *.2 and single-maturity):1, 2 30-89 days........... 4 4*4 Less than $100,000: 90 days to 1 year. 5 30-89 days........................ 5 5 5 5 2 1 - y 2 e a y r e s a o r r s . m .... o ... r .. e .. . .. .. 5 5 5 * % 4 9 1 0 -2 d V a i y y s e t a o r s 1 . . y ... e .. a .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 1/2 5 6 % 5 6 % 5 6 *4 Single-maturity: 2 *4 years or more........... 6*4 6*4 6*4 6*4 Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000: 2 1 - y 2 e a y r e s a o r r s . m .... o .. r .. e ... . . ., 5Vi 5 5 * % 4 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . (4) m m 7 7 * *4 4 $100,000 or more: Governmental units........ (5) (5) 7*4 734 30-59 days............ 51/2 (3) $100,000 or more............... (3) (3) (3) (3) 60-89 days........... 534 (3) 90-179 days......... 51/z 5*4 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r e year Wa ( ( 3 3 ) ) 1 For exceptions with respect to certain foreign time deposits, see amount were subject to the 6*4 per cent ceiling that applies to time de­ Bulletin for Feb. 1968, p. 167. posits maturing in 2*4 years or more. 2 Multiple-maturity time deposits include deposits that are automati­ Effective Nov. 1, 1973, a ceiling rate of 7*4 per cent was imposed on cally renewable at maturity without action by the depositor and deposits certificates maturing in 4 years or more with minimum denominations that are payable after written notice of withdrawal. of $1,000. There is no limitation on the amount of these certificates that 3 Maximum rates on all single-maturity time deposits in denominations banks may issue. of $100,000 or more have been suspended. Rates that were effective 5 Prior to Nov. 27, 1974, no distinction was made between the time Jan. 21, 1970, and the dates when they were suspended are: deposits of governmental units and of other holders, insofar as Regula­ tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 3 6 0 0 - - 5 8 9 9 d d a a y y s s 6 6 * * 4 4 p p e e r r c ce e n n t t l j June 24, 1970 g re o c v e e i r v n e m in e t n e t r a e l s t u r n a i t t e s s w on er t e i m p e e r d m ep it o te s d it s t w o it h h o l d d e n s o a m vin in g a s t i d o e n p s o u s n it d s er a n $ d 1 0 c 0 o ,0 u 0 ld 0 90-179 days 6 3A Per cent I irrespective of maturity, as high as the maximum rate permitted on such 180 days to 1 year 7 per cent [ May 16, 1973 deposits at any Federally insured depositary institution. 1 year or more 7*4 per cent] Note.— Maximum rates that may be paid by member banks are estab­ Rates on multiple-maturity time deposits in denominations of $100,000 lished by the Board of Governors under provisions of Regulation Q; or more were suspended July 16, 1973, when the distinction between however, a member bank may not pay a rate in excess of the maximum single- and multiple-maturity deposits was eliminated. rate payable by State banks or trust companies on like deposits under 4 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates the laws of the State in which the member bank is located. Beginning maturing in 4 years or more with minimum denominations of $1,000. Feb. 1, 1936, maximum rates that may be paid by nonmember insured The amount of such certificates that a bank could issue was limited to commercial banks, as established by the FDIC, have been the same as 5 per cent of its total time and savings deposits. Sales in excess of that those in effect for member banks. For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) U 1937—Nov. 1 1945—Feb. 4................... 40 50 1945—Feb. 5 July 4................... 50 50 July 5 1946—Jan. 75 75 1946—Jan. 21 1947—Jan. 31................... 100 100 1947—Feb. 1 1949—Mar. 29................... 75 75 1949—Mar. 30 1951—Jan. 50 50 1951—Jan. 17 1953—Feb. 19................... 75 75 1953—Feb. 20 1955—Jan. 3................... 50 50 1955—Jan. 4 Apr. 22................... 60 60 Apr. 23 1958—Jan. 15................... 70 70 1958—Jan. 16 Aug. 4................... 50 50 Aug. 5 Oct. 15................... 70 70 Oct. 16 1960—July 27................... 90 90 1960—July 28 1962—July 9................... 70 70 1962—July 10 1963—Nov. 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. 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan,. 3, 1974....................... 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ OPEN MARKET ACCOUNT A 9 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 bills1 Others within 1 year2 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 1970., 11,074 5,214 2,160 99 -3,483 5,430 249 -1,845 93 -102 1971., 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 1972., 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1974. 11,660 5,830 4,550 450 -1,314 797 -697 434 1,675 196 205 1974—Feb.. 768 391 410 687 30 -922 200 35 Mar.. 664 566 165 109 56 Apr.. 1,237 49 407 172 May. 737 100 112 2,563 26 -2,663 100 June. 614 954 204 48 34 July.. 988 211 27 53 Aug.. 1,652 850 -2,867 1,057 1,940 -130 Sept.. 717 565 786 22 -200 200 53 37 Oct... 547 1,110 1,063 Nov.. 1,422 273 107 148 -1,623 92 1,757 -465 200 Dec.. 973 426 6 85 126 123 -126 1975—J F a e n b. . . .. 3 34 5 1 7 9 4 4 6 5 0 6 9 0 0 0 0 14 2,437 3 1 0 2 5 9 -2,836 1 6 1 1 3 249 150 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Net Period Govt, chase change 3 securi­ agree­ Repur­ Gross Gross Gross ties Gross Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions sales chases chases sales chases tions right ments 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 1974—Feb.. 798 391 410 2,393 2,393 4,265 4,265 -3 120 46 1 72 Mar.. 854 566 165 702 702 6,248 5,124 1,246 170 48 185 4 223 1,780 Apr.. 1,409 49 407 8,069 8,498 524 360 48 33 8 —89 789 May. 944 100 4.586 4,586 9,192 8,648 1,388 201 15 424 16 142 2,155 June. 790 954 204 4,580 4,580 6,124 6,667 -911 309 72 -372 -70 -1,115 A Ju u l g y . . . , 1 1 , , 1 6 1 5 3 2 2 8 1 5 1 0 9 2 , . 0 5 6 8 1 7 ’ i i * 287 4 2 , , 2 0 6 9 9 6 4 2 , , 9 0 6 9 5 6 -2 3 , , 3 0 8 2 1 8 2 76 3 1 8 35 3 -270 12 5 1 9 -207 - 2 3 , , 0 3 1 2 1 2 Sept.. 893 565 786 9,420 9,782 3,551 3,551 -96 207 16 40 187 322 Oct.., 547 1,110 1,063 12,574 12,516 4,618 4,618 -1,684 -100 —185 -1,970 Nov.. 1,765 273 238 6,880 6,404 6,990 6,121 1,647 331 369 174 218 2,739 Dec.. 1,254 426 6 8,855 7,962 11,470 11,895 -498 360 142 188 201 393 1975—Jan.. 746 945 600 9,237 10,367 9,260 8,748 844 -409 103 -136 387 Feb.., 673 460 900 7,167 6,634 11,267 10,305 -258 376 246 -12 39 309 1 Before Nov. 1973 Bulletin, included matched sale-purchase trans­ 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers’ acceptances. 2 Includes special certificates acquired when the Treasury borrows Note.—Sales, redemptions, and negative figures reduce System hold­ directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings; all other figures increase such holdings. Details may not add to 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131; Mar. 1975, 1,560. totals because of rounding. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) Pounds Belgian Canadian French German Italian Japanese Mexico Nether­ Swiss End of period Total sterling francs dollars francs marks lire yen pesos lands francs guilders 1970............................................ 257 154 * * 98 1 * 4 1971............................................ 18 3 3 * 2 1 8 1972............................................ 192 * * * ' 164 1 20 6 1973 .......................................... 4 * * * 1 3 1974—Jan.................................. 1 * * * 1 Feb.................................. 32 * 20 * 10 1 Mar ... 6 * 5 * * 1 Apr . 6 * 5 * * 1 May. . 63 * 5 * 57 1 Jone.............................. 90 « 5 * 84 1 July.................. 8 * 1 * 6 1 Aug................................ 220 * * * 39 1 180 Sept............................. 242 * * * 61 1 180 Oct .... 190 * 1 * 8 1 180 Nov............................ 40 * * # 38 1 Dec................................. 2 * * * 1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS □ APRIL 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Mar. 26 Mar. 19 Mar. 12 Mar. 31 Feb. 28 Mar. 31 Assets Gold certificate account.................................... 11,620 11,620 11,620 11,620 11,621 11 ,620 11,621 11,460 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash............................................................ 351 349 352 353 346 352 360 280 Loans: Member bank borrowings............... 814 854 87 58 834 59 77 1,820 Other..................................................... Acceptances: Bought outright.................................. 665 676 657 665 669 73 Held under repurchase agreements. 363 222 324 223 Federal agency obligations: Bought outright................................... 4,981 4,981 4,981 4,983 4,607 5,190 4,983 2,123 Held under repurchase agreements. 463 258 347 185 U.S. Govt, securities: Bought outright: Bills.............................. 36,052 34,944 30,572 34,269 35,484 36,087 35,139 36,400 Certificates—Special. 1,043 Other.. Notes........................... 41,284 40,495 40,495 40,495 40,495 41 ,583 40,495 38,956 Bonds.......................... 3,674 3,535 3,535 3,535 3,535 3,748 3,535 3,004 Total bought outright....................... 181,010 178,974 175,645 178,299 179,514 181,418 179,169 178,360 Held under repurchase agreements. 1,624 2,507 1,917 1,123 Total U.S. Govt, securities. 82,634 78,974 75,645 78,299 82,021 81,418 81,086 79,483 Total loans and securities..................... 89,920 85,464 81,380 84,016 88,599 87,332 87,486 83,907 Cash items in process of collection... 6,584 7,844 7,478 8,054 7,037 *5,190 5,638 5,778 Bank premises......................................... 276 274 273 272 271 275 271 227 Operating equipment3............................ 2 2 2 Other assets: Denominated in foreign currencies. 14 12 12 100 2 19 2 6 All other............................................... 2,847 2,873 2,885 2,784 2,467 2,776 2,732 845 Total assets. *112,014 108,838 104,400 107,599 110,743 Pi 07,966 108,510 102,903 Liabilities F.R. notes............................................... 69,301 69,278 69,337 68,747 68,302 69,270 68,078 62,900 Deposits: M U. e S m . b T e r r e a b s a u n r k y — re G se e r n v e e r s a .. l . .. a .. c .. c .. o .. u ... n .. t .. . *3 3 0 , , 5 3 5 2 4 0 28 1, , 7 3 9 9 5 6 25,*695 28,3 9 0 5 8 6 3 3 0 , , 1 22 8 3 7 *2 4 6 , , 2 7 6 4 9 0 2 2 8 , , 8 6 8 4 4 4 29 1, , 3 8 7 3 3 8 Foreign............................................... 428 321 314 277 271 402 409 366 Other: All other2...................................... 792 870 989 867 851 709 901 673 Total deposits. *35,094 31,382 26,998 30,408 34,532 *32,120 32,838 Deferred availability cash items............ 4,539 5,207 5,172 5,493 4,680 3,456 4,268 4,491 Other liabilities and accrued dividends. 1,056 1,048 1,073 1,072 1,040 1,012 1,098 1,118 Total liabilities. *109,990 106,915 102,580 105,720 108,554 *105,858 106,282 100,759 Capital accounts Capital paid in................................................................... 902 902 899 897 898 903 898 872 Surplus................................................................................. 897 897 897 897 897 897 897 844 Other capital accounts..................................................... 225 124 24 85 394 308 433 428 Total liabilities and capital accounts............................ *112,014 108,838 104,400 107,599 110,743 *107,966 108,510 102,903 Contingent liability on acceptances purchased for foreign correspondents................................................. 46 68 91 113 149 37 130 684 Marketable U.S. Govt, securities held in custody for foreign and international accounts.......................... 38,033 38,120 38,445 38,657 '38,126 36,824 r38,849 26,635 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).......... 74,395 74,450 74,326 74,278 74,233 74,473 74,245 67,218 Collateral held against notes outstanding: Gold certificate account................................... 3,809 3,809 3,712 3,457 3,457 3,809 3,457 2,305 Special Drawing Rights certificate account. 138 138 116 93 93 138 93 Acceptances......................................................... 425 425 425 425 U.S. Govt, securities......................................... 72,277 72,277 71,652 72,162 72,162 72,277 72,162 66,840 Total collateral. 76,224 76,224 75,905 76,137 76,137 76,224 76,137 69,145 1 See note 2 on p A-2. 3 Provides for capitalization of operating equipment costing over 2 See note 6 on page A-2. $10,000. These amounts were previously charged to current expense. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ FEDERAL RESERVE BANKS; BANK DEBITS A 11 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Mar. 26 Mar. 19 Mar. 12 Mar. 5 Feb.26 Mar. 31 Feb.28 Mar. 31 814 854 85 58 834 59 77 1 ,821 813 854 74 52 833 58 74 1,799 16—90 days......................................................................... 1 11 6 1 1 3 22 91 days to 1 year.............................................................. Acceptances—Total............................................................. 1,028 655 667 676 879 665 993 296 Withm 15 days.................................................................. 475 129 123 128 358 111 470 253 16—90 days.......................................................................... 406 405 421 109 419 139 425 43 91 days to 1 year.............................................................. 147 121 123 439 102 415 98 82,634 78,974 75,645 78,299 82,021 81,418 81,086 79,483 Within 15 days1................................................................ 7,128 4,582 2,697 3,374 7,330 3,771 4,649 5,298 16—90 days.......................................................................... 20,414 20,007 18,765 21,305 20,547 22,146 22,196 18,951 91 days to 1 year.............................................................. 21,000 21,203 21,001 20,438 20,962 21,102 21,059 23,232 1—5 years............................................................................ 21,094 20,733 20,733 20,733 20,733 21,288 20,733 22 344 5—10 years.......................................................................... 10,445 10,035 10,035 10,035 10,035 10,485 10,035 7,836 Over 10 years.................................................................... 2,553 2,414 2,414 2,414 2,414 2,626 2,414 1,822 Federal agency obligations—Total.................................. 5,444 4,981 4,981 4,983 4,865 5,190 5,330 2,308 Within 15 days1............................................................... 469 6 120 423 6 514 185 16—90 days.......................................................................... 189 189 195 159 122 189 122 135 91 days to 1 year.............................................................. 643 643 643 618 541 643 608 275 1—5 years............................................................................ 2,578 2,578 2,578 2,541 2,374 2,580 2,541 821 5—10 years.......................................................................... 1,045 1 ,045 1 ,045 1,025 904 1,211 1,025 608 Over 10 years.................................................................... 520 520 520 520 501 561 520 284 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period Leading SMSA’s Total 232 Leading SMSA’s Total 232 Total SMSA’s 226 Total SMSA’s 226 233 (excl. other 233 (excl. other SMSA’s N.Y. 6 others2 N.Y.) SMSA’s SMSA’s N.Y. 6 others2 N.Y.) SMSA’s 1974—Feb.................................. 19,813.7 8,896.2 4,582.1 10,917.5 6,335.4 118.0 294.2 119.9 79.3 63.7 Mar................................. 20,166.9 8,914.4 4,718.0 11,252.5 6,534.6 118.3 292.5 120.8 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 81.1 65.4 June.............................. 20,457.3 9,065.7 4,768.0 11,391.6 6,623.6 116.9 279.9 120.0 79.8 64.3 July................................. 20,899.6 9,140.4 4,892.1 11,759.2 6,867.1 119.8 282.1 123.5 82.8 67.0 Aug................................. 21,478.3 9,240.8 5,173.0 12,237.5 7,064.5 123.4 286.4 132.0 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 22,348.8 10,271.1 5,084.7 12,077.6 6,993.0 127.0 316.8 127.3 84.1 67.5 Nov................................. 22,918.7 10,538.9 5,160.2 12,379.8 7,219.6 131.8 324.6 131.5 87.5 70.6 Dec.................................. 22,192.4 9,931.8 5,152.7 12,260.6 7,107.9 128.0 312.8 131.8 86.6 69.3 1975—Jan.................................. r21,855.3 10,157.8 *■4,868.4 '•11,697.5 '6,829.1 127.2 321.8 125.9 83.4 67.3 Feb.................................. 22,954.1 10,918.0 4,993.5 12,036.1 7,042.6 133.3 343.2 127.4 85.8 69.6 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 12 MONEY STOCK □ APRIL 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M2 Mzr Mi m5 Mi M2 Mzr Mi M& Composition of measures is described inthe Note below. 1972—Dec................................. 255.8 525.7 844.9 569.7 888.8 263.0 530.7 848.0 574.9 892.2 1973—Dec................................. 271.5 572.2 919.6 636.0 983.4 279.1 577.3 922.8 641.3 986.8 1974—Feb.................................. 273.1 580.9 932.5 649.1 1000.7 270.2 578.5 930.2 644.6 996.3 Mar................................. 275.2 585.5 940.0 653.4 1007.9 272.5 584.9 941.1 651.5 1007.7 Apr.................................. 276.6 589.4 945.9 663.3 1019.8 278.2 593.5 952.2 665.3 1024.0 May................................ 277.6 591.6 948.8 670.2 1027.3 272.9 589.7 948.3 666.9 1025.5 June................................ 280.0 597.1 955.9 678.5 1037.2 278.2 596.6 957.4 676.2 1037.0 July................................. 280.5 599.7 959.9 683.3 1043.5 280.1 599.3 961.2 682.1 1044.0 Aug................................. 280.7 602.2 963.0 686.0 1046.7 277.5 598.7 958.9 685.8 1046.0 Sept................................. 281.1 603.8 965.5 688.7 1050.3 279.4 600.7 961.2 689.4 1049.9 Oct................................... 282.2 608.1 971.2 694.3 1057.4 281.7 606.3 968.0 695.1 1056.7 Nov................................. 283.8 613.0 978.3 698.5 1063.8 285.3 611.1 974.2 698.2 1061.2 Dec.................................. 284.3 614.3 982.5 704.6 1072.8 292.2 619.4 985.8 709.8 1076.3 1975—Jan................................... 282.2 616.0 987.5 708.9 1080.4 289.3 621.9 992.9 714.0 1085.0 Feb.................................. 283.8 621.0 996.0 713.2 1088.2 280.8 618.5 993.5 707.9 1082.8 Note.—Composition of the money stock measures is as follows: M3: M2 plus mutual savings bank deposits, savings and loan shares, and credit union shares (nonbank thrift). Mi: Averages of daily figures for (1) demand deposits of commercial Mu M2 plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in A/5: Mz plus large negotiable CD’s. process of collection and F.R. float; (2) foreign demand balances at F.R. N.B. Latest monthly and weekly data—including some revisions going Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of back to 1970—are shown in the Board’s H.6 release for Feb. 20, 1975, and commercial banks. from the Banking Section, Division of Research and Statistics. For M^: Averages of daily figures for Ml plus savings deposits, time de­ general description and other back data, see “Revision of Money Stock posits open account, and time certificates other than negotiable CD’s of Measures and Member Bank Reserves and Deposits” on pp. 817-27 of $100,000 of large weekly reporting banks. the Dec. 1974 Bulletin. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks Time and savings Non­ Demand deposits Time and savings Non­ U.S. Period deposits bank deposits bank Govt. Cur­ De­ thrift Cur­ thrift de­ ren­ mand insti­ ren­ insti­ pos­ cy de­ tu­ cy Do­ tu­ its3 pos­ tions2 r mes­ tions2 r its CD’s1 Other Total Total Mem­ tic CD’s1 Other Total ber nonmem­ ber 1972—Dec................. 56.9 198.9 43.9 269.9 313.8 319.1 57.9 205.1 152.4 51.4 44.2 267.6 311.8 317.3 7.4 1973—Dec................. 61.6 209.9 63.8 300.7 364.5 347.4 62.7 216.4 157.0 56.6 64.0 298.2 362.2 345.6 6.3 I974—Feb................. 62.7 210.4 68.2 307.8 376.0 351 .7 61.9 208.3 151 .1 54.6 66.1 308.3 374.4 351.7 6.6 Mar................ 63.3 211 .9 68.0 310.3 378.3 354.5 62.7 209.8 152.3 54.7 66.7 312.4 379.1 356.2 6.4 Apr................. 63.9 212.8 73.9 312.7 386.7 356.5 63.5 214.7 155.8 56.2 71 .8 315.3 387.1 358.7 6.0 May............... 64.3 213.3 78.5 314.0 392.5 357.1 64.1 208.8 151.3 54.8 77.2 316.7 393.9 358.7 7.6 June............... 64.6 215.4 81 .3 317.1 398.4 358.8 64.8 213.5 153.6 56.1 79.6 318.3 397.9 360.8 6.1 July................ 64.8 215.7 83.6 319.2 402.8 360.2 65.3 214.8 154.4 56.6 82.8 319.2 402.0 361 .9 5.4 Aug................ 65.5 215.3 83.8 321.5 405.2 360.7 65.7 211.9 152.3 56.3 87.1 321.1 408.2 360.3 4.0 Sept................ 65.9 215.3 84.8 322.7 407.5 361.6 65.8 213.6 153.3 57.0 88.7 321.3 410.1 360.5 5.5 Oct.................. 66.5 215.7 86.2 325.9 412.1 363.1 66.4 215.3 154.4 57.7 88.8 324.6 413.3 361.7 3.7 Nov................ 67.3 216.5 85.5 329.2 414.7 365.3 67.8 217.5 155.9 58.4 87.1 325.8 412.9 363.0 3.3 Dec................. r67.8 216.6 90.3 330.0 420.3 368.3 68.9 223.3 160,3 59.7 90.5 327.2 417.6 366.5 4.8 1975—Jan.................. 68.1 214.1 92.9 333.8 426.7 371.5 67.7 221 .6 158.7 59.7 92.1 332.7 424.7 371.0 4.0 Feb.?............. 68.6 215.1 92.2 337.2 429.4 375.0 67.8 213.0 152.2 57.6 89.4 337.8 427.1 375.0 3.3 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above. mutual savings banks, for savings capital at savings and loan associations, and for credit union shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BANK RESERVES; BANK CREDIT A 13 AGGREGATE RESERVES AND MEMBER BANK 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 rowed quired able2 Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 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—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—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 '479.7 317.2 158.3 4.1 489.2 488.2 Oct... 36.86 35.04 36.73 34.89 480.5 317.2 159.5 3.7 480.5 318.6 159.1 2.7 488.3 488.3 Nov.. 36.87 35.62 36.67 34.87 483.6 318.4 160.6 4.6 481.2 317.4 161.4 2.4 491.2 488.8 Dec... 36.91 36.18 36.65 '34.64 485.9 323.4 160.7 1.9 491.8 321.7 166.6 3.5 494.3 500.1 1975—Jan.'. 36.91 36.51 36.76 34.41 488.2 328.5 159.0 .7 495.1 327.2 165.0 2.9 495.8 502.6 Feb... 35.46 35.32 35.27 33.62 489.2 328.9 159.7 .6 487.0 326.5 158.0 2.4 495.6 493.4 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 Total Total Date loans Commercial loans Commercial and and industrial and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments 1 Total1 loans Treas­ Other4 ments 1 Total1 loans Treas­ Other4 sold2 Plus ury sold2 Plus ury Total loans Total loans sold2 sold2 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—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—Apr. 24......... 666.9 476.3 481.7 169.5 172.6 57.1 133.5 664.2 473.0 478.4 170.2 173.3 56.4 134.7 May 29......... 673.4 481.4 487.1 172.9 176.0 57.2 134.8 669.8 480.3 485.9 172.3 175.4 54.1 135.5 June 305.... 677.5 484.5 489.9 174.6 177.5 56.4 136.6 681.6 491.8 497.2 177.2 180.1 52.1 137.6 July 31?----- 686.6 494.3 499.7 177.9 180.8 55.8 136.5 685.4 496.6 502.0 178.3 181.2 52.2 136.6 Aug. 28p----- 692.0 500.2 2505.5 180.7 2183.6 55.3 136.5 687.5 499.3 2504.6 179.1 2182.0 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. 27^6 .. 688.5 500.9 505.8 183.0 185.7 49.3 138.3 688.2 499.1 504.1 182.0 184.7 52.2 136.8 Dec. 31*___ 681.2 494.1 498.9 180.5 183.3 48.8 138.3 699.6 506.5 511.3 184.7 187.5 54.4 138.8 1975—Jan. 29*.... 686.1 498.3 502.9 181.7 184.4 48.9 138.9 685.1 493.5 498.1 179.6 182.3 53.7 138.0 Feb. 26*.... 687.7 495.1 499.6 180.0 182.6 53.4 139.2 682.0 489.0 493.4 178.2 180.8 54.8 138.2 Mar. 26p___ 691.3 493.8 498.5 178.8 181.6 58.8 138.7 686.9 487.8 492.5 178.4 181.2 59.7 139.3 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright for banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re­ was also different. On the new basis, both “Total loans” and “Com­ classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by Note.—Total loans and investments: For monthly data, Jan. 1959about $400 million as of June 30, 1972. June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, 4 Farmers Home Administration insured notes included in “Other Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current securities” rather than in loans beginning June 30, 1971, when such notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaled about $700 million. the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans; 5 Data beginning June 30, 1974, include one large mutual savings For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. bank that merged with a nonmember commercial bank. As of that date A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for Digitized for tFhRerAe wSeEreR i ncreases of about $500 million in loans, $100 million in “Other last Wednesday of month except for June 30 and Dec. 31; data are partly securities,” and $600 million in “Total loans and investments.” or wholly estimated except when June 30 and Dec. 31 are call dates. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 COMMERCIAL BANKS □ APRIL 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia­ Interbank3 Other Total Num­ FRS membership Cash bilities Bor­ capital ber and FDIC assets 3 and row­ ac­ of insurance Total Loans capital Total3 Demand ings counts banks l U.S. Other ac­ De­ Treas­ 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series 6 >anks: 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44.,349 15,952 23 7,173 14,278 31 7.. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 31... 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 31... 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 31... 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 27... 691,080 500,100 57,510133,470104,430 831,500 661,180 32,030 6,490 6,110 235,830 380,720 69,930 59,310 14,236 24... 699,290 508,140 56,410134,740102,360 838,740 669,730 31,450 7,290 5,900 236,170 388,920 67,580 59,950 14,261 29.. . 703,820 514,280 54,080135,460115,575 857,695 683,175 34,870 8,200 5,940 238,215 395,950 69,910 60,330 14,290 30... 718,713 528,951 52,114137,648126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 14,337 31*.. 719,930 531,110 52,210136,610107,730 871,560 694,620 33,660 9,680 4,320 243,620 403,340 67,820 61,490 14,368 28*.. 720,430 532,230 51,970136,230100,390 863,640 687,270 30,780 9,970 4,010 235,330 407,180 66,750 61,440 14,384 , 25*.. 718,560 531,210 50,630136,720107,020 870,400 691,030 30,13010,610 7,270 235,850 407,170 67,130 61,730 14,399 30*.. 720,010 532,400 50,640136,970110,370 876,400 698,030 33,60010,180 2,980 242,130 409,140 67,330 62,020 14,423 , 27*.. 726,250 537,210 52,230136,810115,740 890,330 706,010 34,95010,310 3,790 247,840 409,120 70,100 62,100 14,441 31*.. 739,770 546,660 54,360138,750126,090 916,320 746,760 45,37011,250 4,540 267,350 4 18,250 55,870 63,070 14,457 29*.. 721,560 529,940 53,660137,960101,560 871,180 699,770 30,79011,380 4,370 233,210 420,020 60,990 64,010 14,476 26*.. 721,480 528,470 54,810138,200103,760 874,480 699,650 30,68010,080 2,560 233,930 422,400 63,600 64,460 14,498 , 26*.. 726,950 527,890 59,720139,340105,480 883,730 708,870 31,07011,320 3,830 236,070 426,580 62,520 65,100 14,498 Members of F.R. System: 31 ... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 31... 405,087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 31... 528,124 391,032 41,494 95,598100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 . 27... 529,961 392,461 40,537 96,963 89,568 649,114 506,641 30,083 5,558 4,817 180,862 285,321 65,428 45,491 5,754 24... 535,917 399,092 39,273 97,552 87,005 653,285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 5,763 29... 538,801 403,619 37,282 97,900 99,155 669,357 524,837 32,452 7,274 4,746 182,060 298,305 64,820 46,090 5,763 30... 550,388 415,061 35,934 99,393108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 5,761 31... 552,619 418,065 35,860 98,694 91,430 680,511 533,807 31,153 8,598 3,180 186,360 304,516 63,042 46,907 5,767 28... 552,823 418,705 35,878 98,240 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,814 5,767 25... 550,837 417,623 34,683 98,531 91,002 679,160 531,195 27,831 9,522 5,782 180,114 307,946 62,171 47,054 5,775 308.. 548,801 416,118 34,813 97,870 93,674 680,173 535,128 31,043 9,089 2,117 184,573 308,306 60,803 47,131 5,776 27 *. 556,031 421,377 36,392 98,262 98,591 694,670 542,460 32,421 9,222 2,858 189,663 308,296 65,411 47,320 5,775 31*.. 566,966 429,119 38,374 99,473106,435 715,250 576,231 41,63710,170 3,117 204,646 316,661 51,977 48,019 5,782 29*.. 550,264 414,426 37,549 98,289 86,321 676,905 536,256 28,31110,299 3,247 177,701 316,698 56,136 48,411 5,784 26*.. 549,144 412,076 38,628 98,440 88,430 678,970 535,250 28,157 8,991 1,989 178,596 317,517 58,868 48,741 5,786 26*.. 552,957 411,446 42,544 98,967 89,685 685,906 542,076 28,56410,231 2,794 180,214 320,273 58,030 49,219 5,786 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 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 13,502 1971—Dec. 31... 514,097 345,386 64,691104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—June 30... 709,904 521,424 51,832136,648123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 61,003 14,108 Oct. 15... 722,622 535,703 186,918 126,098 891,650 718,798 40,185 9,476 3,203 257,086 408,849 67,064 62,687 14,188 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 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 4,620 1971—Dec. 31... 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31... 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—Dec. 31... 398,236 293,555 30,962 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 4,659 1974—June 30... 418,329 313,659 27,631 77,039 73,703 516,632 407,915 20,086 4,912 5,038 145,954 231,925 48,123 34,966 4,693 Oct. 15... 421,936 319,611 102,324 74,383 522,642 416,656 20,411 6,008 1,808 150,375 238,053 44,504 35,542 4,700 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ COMMERCIAL BANKS A 15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets3 bilities row­ ac­ of insurance Total Loans U.S. and Total 3 Demand ings counts banks l Treas­ Other capital De­ Time ury 2 ac­ mand Time 5 counts4 U.S. Other 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—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 Oct. 15... 137,005 105,462 31,543 36,194 182,837 140,676 18,472 2,817 577 47,570 71,239 19,399 12,206 1,072 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—June 30.. .. 159,186 106,033 15,898 37,255 14,565 179,457 156,406 1,323 610 1,731 56,580 96,162 2,678 14,057 8,347 Oct. 15... 163,681 110,630 53,050 15,521 186,171 161,466 1,301 651 816 59,140 99,557 3,161 14,940 8,416 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 329 i,:291 253 13 329 852 1947—Dec. 317... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 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 i157 5,i504 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 I960—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 17,516192,227 163,016 2,804 1,086 1,743 58,789 98,593 4,711 14,677 8,576 1 Loans to farmers directly guaranteed by CCC were reclassified as owned domestic subsidiaries) and (2) reporting of figures for total loans securities and Export-Import Bank portfolio fund participations were and for individual categories of securities on a gross basis—that is, before reclassified from loans to securities effective June 30, 1966. This reduced deduction of valuation reserves—rather than net as previously reported. “Total loans” and increased “Other securities” by about $1 billion. “Total loans” include Federal funds sold, and beginning with June 1967 Note.—Data are for all commercial banks in the United States (includ­ securities 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-16. 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: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks for the period ending June 30, 1971, for all commercial banks. are not included in insured commercial banks. See also table (and notes) at the bottom of p. A-24. Effective June 30, 1959, commercial banks and member banks exclude 2 See first 2 paragraphs of note 1. a small national bank in the Virgin Islands; also, member banks exclude, 3 Reciprocal balances excluded beginning with 1942. and noninsured commercial banks include, through June 30, 1970, a small 4 Includes items not shown separately. See also note 1. member bank engaged exclusively in trust business; beginning 1973, 5 See third paragraph of note 1 above. excludes 1 national bank in Puerto Rico. 6 For 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 1 and 2 noninsured 7 Beginning with Dec. 31, 1947, the series was revised; for description, 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 16 COMMERCIAL BANKS □ APRIL 1975 ASSETS BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 AU Insured Large banks Account commercialcommercial Non­ banks banks member Total New City of Other All other banks1 York Chicago large City 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 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. Govt, agencies.............................................. 31,359 31,001 20,523 2,123 923 5,960 11,518 10,835 States and political subdivisions................................... 99,870 99,466 74,457 8,578 2,930 25,850 37,099 25,413 All other securities........................................................... 6,420 6,180 4,412 777 206 1,342 2,087 2,008 Trade-account securities................................................. 6,370 6,368 6,281 2,162 539 3,293 288 88 U.S. Treasury............................................................... 707 705 691 -22 141 531 42 16 Other U.S. Govt, 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 45 269 269 253 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. Govt, 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/modemize................................ 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 Fixed 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 2 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 2 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. 24. Back data in lesser detail were shown in previous Bulletins. Beginning 3 Demand deposits adjusted are demand deposits other than domestic with the fall Call Report, data for future spring and fall Call Reports will commercial interbank and U.S. Govt., less cash items reported as in be available from the Data Production Section of the Division of Data process of collection. Processing. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ COMMERCIAL BANKS A 17 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1974 (Amounts in millions of dollars) Member banks1 All Insured Large banks Non­ Account commercialcommercial member banks banks Total All other banks1 New City of Other York Chicago large City Demand deposits.................................................................. 302,816 299,114 239,480 60,522 9,014 81,359 88,585 63,337 Mutual savings banks..................................................... 1,298 1,186 1,103 472 1 171 459 196 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 8,640 5,116 Foreign governments, central banks, etc..................... 1,698 1,534 1,514 1,307 17 182 8 185 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 6,165 2,039 33,834 54,450 36,641 460 457 330 63 267 130 Mutual savings banks..................................................... 486 465 456 275 32 129 20 30 Other individuals, partnerships, and corporations.. 207,331 206,061 159,052 25,950 10,969 58,285 63,848 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 liabilities for borrowed money.............................. 10,483 9,531 9,184 3,665 141 4,193 1,185 1,299 Mortgage indebtedness....................................................... 1,192 1,188 1,002 78 5 386 533 189 Bank acceptances outstanding.......................................... 6,916 6,761 6,509 3,980 362 1,914 253 407 Other liabilities..................................................................... 29,091 25,767 21,338 4,583 2,015 8,053 6,689 7,752 Total liabilities...................................................................... 815,123 802,997 639,046 128,411 33,410 236,499 240,726 176,076 Minority interest in consolidated subsidiaries............... 4 4 1 1 3 Total reserves on loans/securities..................................... 8,005 7,982 6,535 1,449 428 2,428 2,231 1,470 Reserves for bad debts (IRS)........................................ 7,709 7,691 6,347 1,448 427 2,368 2,104 1,362 Other reserves on loans.................................................. 125 125 79 1 1 8 69 47 Reserves on securities..................................................... 171 166 110 52 58 61 Total capital accounts......................................................... 61,623 61,003 46,946 9,136 2,068 16,323 19,418 14,677 Capital notes and 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 adjusted 3............................................... 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.......................................... .7 .7 .9 1.6 1.5 1.3 . 1 U.S. Treasury........................................................... . 1 . 1 . 1 .4 .2 States and political subdivisions........................... .4 .4 .6 1.2 .7 .7 . 1 All other trading account securities..................... .2 .2 .2 .4 .4 .4 Bank investment portfolios........................................ 20.7 20.9 18.6 9.4 13.2 16.2 26.6 28.3 U.S. Treasury........................................................... 5.8 5.9 5.1 2.7 3.0 4.3 7.4 8.4 States and political subdivisions........................... 10.8 11.0 10.2 5.0 7.5 9.4 14.1 13.2 All other portfolio securities................................. 4.1 4.1 3.4 1.7 2.7 2.5 5.2 6.7 Other loans and Federal funds sold............................ 59.8 59.8 60.0 56.4 68,9 62.3 58,4 59.3 All other assets................................................................. 4.4 4.4 4.7 6.6 4.7 5.3 3.3 3.3 Total loans and securities.............................................. 81.3 81.4 79.5 67.4 83.6 79.8 85.1 87.6 Reserves for loans and securities.................................. .9 .9 .9 1.0 1.2 1.0 .9 .8 Equity capital—Total...................................................... 6.5 6.5 6.3 6.0 5.6 5.7 7.0 7.2 Total capital accounts..................................................... 7.0 7.0 6.8 6.6 5.8 6.4 7.4 7.6 Number of banks................................................................. 14,337 14,108 5,761 13 9 156 5,583 8,576 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities To nonbank Total involving— financial loans institutions Wednesday and To brokers To invest­ To Com­ and dealers others ments com­ To mer­ Agri­ Total mer­ U.S. Other others Totai cial cul­ Real cial Treas­ se­ and tural Pers. estate banks ury curi­ indus­ U.S. U.S. and se­ ties trial Treas­ Other Treas­ Other sales Other curi­ ury secs. ury secs. finan. ties secs. secs. COS., etc. Large banks— Total 1974 Mar. 6.................. 375,493 16,805 15,093 1,123 342 247270,354 111,725 3,776 1,057 5,135 148 2,753 8,293 18,133 55,925 13.................. 374,813 15,597 14,020 1,050 311 216270,610 112,702 3,792 591 4,898 145 2,777 8,397 18,359 56,060 20.................. 375,540 15,016 13,492 993 303 228273,354 114,739 3,784 575 4,747 141 2,767 8,457 18,400 56,261 27.................. 378,094 15,447 13,623 1,210 313 301275,815 115,953 3,778 656 4,642 141 2,770 8,665 18,583 56,307 1975 Feb. 5.................. 397,028 21,115 17,027 1,929 1,248 911291,973 126,468 3,570 1,467 3,289 82 2,446 10,114 20,898 59,859 12.................. 394,403 20,653 16,774 1,802 1,000 1,077289,315 126,072 3,513 585 2,769 83 2,444 9,785 20,775 59,667 19.................. 397,374 20,415 16,514 1,729 1,076 1,096291,205 126,083 3,504 1,287 3,443 82 2,470 10,226 20,698 59,751 26.................. 391,471 17,469 13,959 1,547 1,065 898288,802 125,957 3,494 800 2,785 81 2,431 9,725 20,455 59,739 Mar. 5p................ 399,986 22,935 17,689 2,904 1,377 965289,909 126,769 3,424 1,618 3,249 80 2,408 9,761 20,521 59,524 12 p................ 399,940 22,196 16,103 3,438 1,510 1,145289,474 125,701 3,447 3,284 3,469 82 2,395 9,490 20,299 59,587 19 p................ 395,863 19,539 14,675 2,320 1,537 1,007288,234 126,027 3,402 1,573 3,699 84 2,374 9,443 20,225 59,542 26 p................ 393,857 19,396 15,381 2,079 1,147 789286,209 125,778 3,390 914 3,209 83 2,373 9,282 20,228 59,475 New York City 1974 Mar. 6................. 81,270 1,076 986 90 64,179 31,982 155 965 3,157 39 611 2,819 6,203 6,412 1 3 80,347 1,053 1,031 14 8 63,720 32,486 153 527 2,911 39 607 2,948 6,229 6,406 2 0 80,859 1,079 1,070 5 4 64,511 33,021 151 472 2,870 38 604 2,889 6,281 6,461 2 7 81,742 1,424 1,356 10 8 50 65,363 33,564 146 564 2,726 37 606 3,024 6,306 6,478 1975 Feb. 5................. 88,796 1,065 855 126 84 73,684 39,306 120 946 2,123 18 492 3,498 8,338 7,448 12.................. 88,958 1,613 1,308 141 26 138 72,662 39,160 109 517 1,874 17 494 3,332 8,292 7,468 19.................. 91,539 2,444 2,051 136 257 74,173 39,253 117 1,130 2,354 20 498 3,504 8,242 7,455 26.................. 88,753 1,311 1,066 128 5 112 72,646 39,175 115 725 1,841 18 482 3,246 8,142 7,447 Mar. 5v................ 90,795 1,359 1,111 121 1 126 74,080 39,356 113 1,421 2,239 17 485 3,432 8,109 7,429 I2p................ 91,554 1,807 1,376 144 1 286 74,490 38,870 111 2,987 2,361 19 489 3,275 7,922 7,438 19 p................ 90,670 1,892 1,443 133 1 315 73,266 38,857 110 1,354 2,649 20 482 3,283 7,938 7,444 26*................ 89,283 2,024 1,813 131 80 71,930 38,738 109 781 2,280 19 476 3,167 7,959 7,444 Outside New York City 1974 Mar. 6................. 294,223 15,729 14,107 1,123 342 157206,175 79,743 3,621 92 1,978 109 2,142 5,474 11,930 49,513 13.................. 294,466 14,544 12,989 1,050 297 208206,890 80,216 3,639 64 1,987 106 2,170 5,449 12,130 49,654 2 0 294,681 13,937 12,422 993 298 224208,843 81,718 3,633 103 1,877 103 2,163 5,568 12,119 49,800 27.................. 296,352 14,023 12,267 1,200 305 251210,452 82,389 3,632 92 1,916 104 2,164 5,641 12,277 49,829 1975 Feb. 5.................. 308,232 20,050 16,172 1,803 1,248 827218,289 87,162 3,450 521 1,166 64 1,954 6,616 12,560 52,411 12.................. 305,445 19,040 15,466 1,661 974 939216,653 86,912 3,404 68 895 66 1,950 6,453 12,483 52,199 19.................. 305,835 17,971 14,463 1,593 1,076 839217,032 86,830 3,387 157 1,089 62 1,972 6,722 12,456 52,296 26.................. 302,718 16,158 12,893 1,419 1,060 786216,156 86,782 3,379 75 944 63 1,949 6,479 12,313 52,292 Mar. ................ 309,191 21,576 16,578 2,783 1,376 839215,829 87,413 3,311 197 1,010 63 1,923 6,329 12,412 52,095 \2p................ 308,386 20,389 14,727 3,294 1,509 859214,984 86,831 3,336 297 1,108 63 1,906 6,215 12,377 52,149 19 p................ 305,193 17,647 13,232 2,187 1,536 692214,968 87,170 3,292 219 1,050 64 1,892 6,160 12,287 52,098 26p................ 304,574 17,372 13,568 1,948 1,147 709214,279 87,040 3,281 133 929 64 1,897 6,115 12,269 52,031 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ WEEKLY REPORTING BANKS A 19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer­ Notes and bonds cial banks maturing— Obligations Other bonds, of States corp. stocks, Wednesday and and Con­ For­ political securities sumer eign All Certif­ subdivisions instal­ govts. other Total icates Total Do­ For­ ment 2 mes­ eign Within 1 to After tic 1 yr. 5 yrs. 5 yrs. Tax Certif. war­ All of All rants 3 other partici­ other5 pation4 Large banks— Total 1974 3,670 4,975 33,153 1,468 20,143 25,995 5,440 4,338 11,993 4,224 62,339 7,529 41,136 2,433 11,241 ................Mar. 6 3,592 4,958 33,138 1,466 19,735 25,730 5,278 4,346 11,920 4,186 62,876 7,822 41,123 2,532 11,399 ...........................13 3,758 5,496 33,105 1,578 19,546 24,869 4,601 4,387 11,772 4,109 62,301 7,600 40,901 2,541 11,259 ...........................20 3,766 5,863 33,166 1,650 19,875 24,829 4,649 4,278 11,769 4,133 62,003 7,400 40,942 2,463 11,198 ...........................27 1975 2,934 5,450 34,726 1,405 19,265 22,752 3,385 3,757 12,326 3,284 61,188 6,273 39,936 2,480 12,499 ................Feb. 5 3,166 5,473 34,664 1,436 18,883 23,253 4,138 3.706 12,165 3,244 61,182 6,239 39,994 2,479 12,470 ..........................12 2,892 5,493 34,587 1,471 19,218 24,427 4,057 3,428 13,254 3,688 61,327 6,237 40,061 2,513 12,516 ..........................19 2,919 5,504 34,427 1,418 19,067 24,095 4,091 3,407 13,040 3,557 61,105 6,137 40,107 2,562 12,299 ..........................26 2,745 5,329 34,258 1,453 18,770 25,459 4,107 3,711 14,161 3,480 61,683 6,196 40,441 2,610 12,436 ................Mar. 5* 2,671 5,159 34,133 1,363 18,394 26,423 4,966 3,885 14,122 3,450 61,847 6,329 40,444 2,608 12,466 ...........................12* 2,684 5,222 34,034 1,308 18,617 26,739 4,787 3,732 14,252 3,968 61,351 6,090 40,173 2,490 12,598 ..........................19* 2,803 5,155 33,939 1,326 18,254 27,210 5,089 3.707 14,551 3,863 61,042 6,204 39,864 2,452 12,522 ..........................26* New York City 1974 1,349 2,597 2.470 740 4,680 5,297 1,641 535 1,819 1,302 10,718 2,342 5,740 567 2,069 ................Mar. 6 1,344 2,564 2.470 729 4,307 5,027 1,377 587 1,754 1,309 10,547 2,296 5,566 567 2,118 ..........................13 1,270 2,874 2,469 788 4,323 4,791 1,239 561 1,701 1,290 10,478 2,254 5,556 576 2,092 ..........................20 1,370 2,922 2,472 822 4,326 4,819 1,284 539 1,690 1,306 10,136 2,090 5,423 562 2,061 ...........................27 1975 1,501 2,652 2,641 692 3,909 4,333 665 321 2,320 1,027 9.714 1,765 5,152 562 2,235 ................Feb. 5 1,507 2,704 2,628 701 3,859 4,868 1,259 323 2,295 991 9,815 1,812 5,180 554 2,269 ..........................12 1,484 2,682 2,634 708 4,092 5,205 1,071 361 2,597 1,176 9,717 1,779 5,133 534 2,271 ..........................19 1,442 2,760 2,612 691 3,950 5,118 1,051 356 2,558 1,153 9,678 1,664 5,173 533 2,308 ..........................26 1,401 2,701 2,609 751 4,017 5,459 1,022 358 2,967 1,112 9,897 1,656 5,331 563 2,347 .................Mar. 5* 1,325 2,613 2,602 709 3,769 5,542 1,111 468 2,i 1,074 9.715 1,682 5,183 531 2,319 .........................12* 1,293 2,686 2,597 665 3 ,r* 5,1 1,059 393 2,954 1,402 9,704 1,679 5,121 533 2,371 .........................19* 1,389 2,633 2,591 674 3,670 5,688 1,011 355 3,047 1,275 9,641 1,684 5,034 522 2,401 .........................26* Outside New York City 1974 2,321 2,378 30,683 728 15,463 20,698 3,799 3,803 10,174 2,922 51,621 5,187 35,396 1,866 9,172 .Mar. 6 2,248 2,394 30,668 737 15,428 20,703 3,901 3,759 10,166 2,877 52,329 5,526 35,557 1.965 9,281 ...........13 2,488 2,622 30,636 790 15,223 20,078 3,362 3,826 10,071 2,819 51,823 5,346 35,345 1.965 9,167 ..........20 2,396 2,941 30,694 828 15,549 20,010 3,365 3,739 10,079 2,827 51,867 5,310 35,519 1,901 9,137 ..........27 1975 1,433 2,798 32,085 713 15,356 18,419 2,720 3,436 10,006 2,257 51,474 4,508 34,784 1,918 10,264 .Feb. 5 1,659 2,769 32,036 735 15,024 18,385 2,879 3,383 9,870 2,253 51,367 4,427 34,814 1,925 10,201 ...........12 1,408 2,811 31,953 763 15,126 19,222 2,986 3,067 10,657 2,512 51,610 4,458 34,928 1,979 10,245 ..........19 1,477 2,744 31,815 727 15,117 18,977 3,040 3,051 10,482 2,404 51,427 4,473 34,934 2,029 9,991 ..........26 1,344 2,628 31,649 702 14,753 20,000 3,085 3,353 11,194 2,368 51,786 4,540 35,110 2,047 10,089 .Mar. 5* 1,346 2,546 31,531 654 14,625 20,881 3,855 3,417 11,233 2,376 52,132 4,647 35,261 2,077 10,147 ..........12* 1,391 2,536 31,437 643 14,729 20,931 3,728 3,339 11,298 2,566 51,647 4,411 35,052 1,957 10,227 ..........19* 1,414 2,522 31,348 652 14,584 21,522 4,078 3,352 11,504 2,588 51,401 4,520 34,830 1,930 10,121 ..........26* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ Domestic Wednesday process with and do­ sidiar­ assets total Interbank of F.R. coin mestic ies not liabil­ States collec­ Banks banks consol­ ities and tion idated Total polit­ U.S. 6 IPC ical Govt. Com­ Mutual sub­ mer­ sav­ divi­ cial ings sions Large banks— Total 1974 Mar. 6....................... 33,386 21,939 3,966 11,843 1,446 22,013 470,086 157,794 110,728 6,470 2,366 23,742 694 13....................... 32,843 23,145 4,341 11,417 1,449 22,270 470,278 156,244 111,911 6,057 1,940 22,313 732 20....................... 32,900 22,992 4,300 12,389 1,465 22,357 471,943 158,290 110,478 6,095 4,044 23,365 584 27....................... 32,860 21,159 4,422 12,384 1,464 22,649 473,032 158,612 111,152 6,521 3,440 22,976 610 1975 Feb. 5....................... 32,333 25,636 4,219 11,278 1,689 33,438 505,621 159,563 113,147 6,396 2,767 22,882 748 12....................... 31,745 25,455 4,643 11,566 1,691 33,207 502,710 153,918 112,549 5,943 1,448 21,153 665 19....................... 36,489 21,411 4,772 11,912 1,705 33,583 507,246 160,690 115,209 6,499 1,566 23,643 628 26....................... 29,909 23,997 4,788 10,618 1,696 33,804 496,283 153,243 112,434 6,043 1,440 20,674 612 Mar. 5*..................... 34,060 22,208 4,136 12,073 1,681 35,022 509,166 161,357 114,720 6,327 2,332 24,011 677 12*..................... 32,054 19,650 4,505 11,910 1,681 35,035 504,775 159,368 116,472 5,868 1,714 22,406 649 19*..................... 30,809 21,539 4,655 11,397 1,680 33,876 499,819 156,667 112,656 5,942 3,565 21,647 618 26*..................... 30,608 23,714 4,643 11,146 1,692 35,536 501,196 155,583 112,802 6,394 1,720 21,118 589 New York City 1974 Mar. 6....................... 11,999 6,720 476 5,666 675 6,397 113,203 45,931 23,924 490 429 11,847 299 13....................... 12,289 6,232 499 5,631 678 6,704 112,380 45,370 23,929 487 385 11,458 297 20....................... 12,501 6,306 484 6,394 680 6,922 114,146 46,713 23,975 440 804 12,239 281 27....................... 13,583 4,859 500 6,313 679 6,987 114,663 48,082 25,132 646 695 12,000 311 1975 Feb. 5....................... 11,561 8,984 502 4,617 763 11,870 127,093 45,821 25,670 393 600 10,747 417 12....................... 11,595 7,825 530 5,209 765 11,603 126,485 43,297 25,163 267 110 9,824 351 19....................... 12,063 6,488 541 4,935 770 12,060 128,396 45,505 25,826 267 115 10,759 302 26....................... 11,256 6,489 524 4,415 770 11,946 124,153 44,698 26,544 365 259 9,769 332 Mar. 5*..................... 11,948 7,313 481 4,818 767 12,589 128,711 46,359 26,138 418 473 10,761 360 12*..................... 11,278 5,290 501 4,949 765 12,775 127,112 45,084 26,211 328 248 10,458 341 19*..................... 11,241 5,181 493 4,785 765 11,631 124,766 44,434 24,905 403 600 10,659 320 26*..................... 11,968 7,053 495 4,970 771 12,766 127,306 45,875 25,531 551 268 10,726 307 Outside New York City 1974 Mar. 6....................... 21,387 15,219 3,490 6,177 771 15,616 356,883 111,863 86,804 5,980 1 ,937 11,895 395 13....................... 20,554 16,913 3,842 5,786 771 15,566 357,898 110,874 87,982 5,570 1 ,555 10,855 435 20....................... 20,399 16,686 3,816 5,995 785 15,435 357,797 111,577 86,503 5,655 3,240 11,126 303 27....................... 19,277 16,300 3,922 6,071 785 15,662 358,369 110,530 86,020 5,875 2,745 10,976 299 1975 Feb. 5 ....................... 20,772 16,652 3,717 6,661 926 21,568 378,528 113,742 87,477 6,003 2,167 12,135 331 12....................... 20,150 17,630 4,113 6,357 926 21,604 376,225 110,621 87,386 5,676 1 ,338 11,329 314 19....................... 24,426 14,923 4,231 6,977 935 21,523 378,850 115,185 89,383 6,232 1,451 12,884 326 26....................... 18,653 17,508 4,264 6,203 926 21,858 372,130 108,545 85,890 5,678 1,181 10,905 280 Mar. 5*..................... 22,112 14,895 3,655 7,255 914 22,433 380,455 114,998 88,582 5,909 1 ,859 13,250 317 12*..................... 20,776 14,360 4,004 6,961 916 22,260 377,663 114,284 90,261 5,540 1 ,466 11,948 308 19*..................... 19,568 16,358 4,162 6,612 915 22,245 375,053 112,233 87,751 5,539 2,965 10,988 298 26*..................... 18,640 16,661 4,148 6,176 921 22,770 373,890 109,708 87,271 5,843 1 ,452 10,392 282 For notes see page A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Fed­ eral Other Foreign IPC funds liabili­ Certi­ States pur­ ties, Wednesday fied and Do­ chased, etc. 8 and polit­ mes­ For­ etc. 7 F.R. Com­ offi­ Total6 ical tic eign Banks Others Govts., mer­ cers’ Sav­ Other sub- inter­ govts.2 etc. 2 cial checks ings divi- bank banks Large banks— Total 1974 1,102 4.523 8,169 193,066 57,418 98,930 23,505 4,704 7,890 57,583 671 5,390 18,093 ................Mar. 6 1,059 4,492 7,740 194,079 57,652 99,899 23,524 4,724 7,648 56,802 1,362 5,910 18,344 ...........................13 1,067 4.523 8,134 194,171 57,905 99,788 23,531 4,770 7,541 55,240 1,910 6,150 18,709 ..........................20 1,221 4,678 8,014 195,888 58,250 101,026 23,493 4,886 7,567 53,527 1,700 6,357 19,433 ...........................27 1975 1,270 4,927 7,426 225,582 58,977 120,105 24,979 7,841 11,597 52,935 3,804 23,734 ................Feb. 5 1,291 5,119 5,750 225,927 59,217 120,370 25,318 7,266 11,706 55,493 34 3,765 23,528 ..........................12 1,116 5,018 7,011 224,305 59,474 118,898 25,194 7,055 11,716 53,982 1,053 3,625 23,622 ..........................19 1,222 5,010 5,808 224,440 59,694 118,810 25,299 7,143 11,568 50,853 759 3,662 23,311 ...........................26 1,153 5,181 6,956 224,687 60,209 118,651 25,009 7,263 11,626 55,401 3,952 23,449 ................Mar. 5 * 1,223 5,123 5,913 225,720 60,698 118,854 24,895 7,763 11,579 51,752 40 4,094 23,439 ...........................12p 1,029 4,939 6,271 226,110 61,152 118,579 24,660 8,104 11,681 47,580 798 4,090 24,240 ...........................19* 1,129 5,005 6,826 226,917 61,553 118,788 24,529 8,354 11,703 49,890 678 4,017 23,764 ...........................26* New York City 1974 872 3,370 4,700 34,633 5,037 20,798 1,746 2,946 3,985 14,309 230 2,490 5,819 ...............Mar. 6 839 3,334 4,641 35,086 5,062 21,221 1,808 2,964 3,896 13,058 80 2,839 6,146 ...........................13 859 3,392 4,723 35,079 5,078 21,155 1,890 3,028 3,786 12,297 898 2,837 6,491 ...........................20 1,004 3,496 4,798 35,552 5,126 21,453 1,899 3,110 3,815 11,340 220 2,896 6,746 ...........................27 1975 998 3,636 3,360 47,194 5,146 28,079 1.412 3,905 7,127 13,858 1,415 8,248 ................Feb. 5 1,055 3,761 2,766 47,111 5,192 28,280 1,467 3,511 7,143 16,013 1,425 8,072 ............................12 897 3,696 3,643 46,849 5,205 27,934 1,473 3,546 7,218 14,979 981 1,358 8,163 ............................19 1,022 3,668 2,739 46,921 5,240 27,945 1,500 3,611 7,168 12,582 1,355 8,033 .........................26 950 3,807 3,452 47,030 5,257 27,994 1,466 3,624 7,238 15,205 1,609 7,827 ................Mar. 5* 1,017 3,732 2,749 47,058 5,307 27,853 1.413 3,827 7,213 14,778 1,683 7,822 .........................12* 753 3,596 3,198 46,716 5,349 27,421 1,326 3,915 7,267 11,829 615 1,804 8,684 .........................19* 933 3,648 3,911 46,947 5,407 27,638 1 ,305 3,854 7,280 13,795 53 1,828 8,130 .........................26* Outside New York City 1974 230 1,153 3,469 158,433 52,381 78,132 21,759 1,758 3,905 43,274 441 2,900 12,274 ...............Mar. 6 220 1 ,158 3,099 158,993 52,590 78,678 21,716 1 ,760 3.752 43,744 1,282 3,071 12,198 .........................13 208 1,131 3,411 159,092 52,827 78,633 21,641 1 ,742 3,755 42,943 1,012 3,313 12,218 .........................20 217 1,182 3,216 160,336 53,124 79,573 21,594 1,776 3.752 42,187 1,480 3,461 12,687 .........................27 1975 272 1 ,291 4,066 178,388 53,831 92,026 23,567 3.936 4,470 39,077 2,389 15,486 ...............Feb. 5 236 1 ,358 2,984 178,816 54,025 92,090 23,851 3,755 4,563 39,480 34 2,340 15,456 ..........................12 219 1 ,322 3,368 177,456 54,269 90,964 23,721 3,509 4,498 39,003 72 2,267 15,459 .........................19 200 1 ,342 3,069 177,519 54,454 90,865 23,799 3,532 4,400 38,271 759 2,307 15,278 .........................26 203 I ,374 3,504 177,657 54,952 90,657 23,543 3,639 4,388 40,196 2,343 15,622 .........Mar. 5* 206 I ,391 3,164 178,662 55,391 91,001 23,482 3.936 4,366 36,974 40 2,411 15,617 .........................12* 276 1 ,343 3,073 179,394 55,803 91 ,158 23,334 4,189 4,414 35,751 183 2,286 15,556 .........................19* 196 1 ,357 2,915 179,970 56,146 91 ,150 23,224 4,500 4,423 36,095 625 2,189 15,634 .........................26* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Reserves Memoranda for— Total Total Large negotiable Gross capital loans time CD’s All other large liabili­ Wednesday Total and De­ included in time time deposits12 ties of Secur­ loans invest­ mand and savings deposits1 banks Loans ities (gross) ments deposits to ad­ (gross) ad­ their justed 9 ad­ justed 1 o Issued Issued Issued Issued foreign justed 9 Total to to Total to to branches IPC’s others IPC’s others Large banks— Total 1974 Mar. 6................. 5.008 32,402 268,396 356,730 98,300 65,877 45,018 20,859 1,610 13................. 5.008 32,450 268,595 357,201 99,148 66,523 45,791 20,732 2,274 20................. 5,000 32,399 271,120 358,290 97,981 66,261 45,454 20,807 2,459 27................. 4,997 32,444 273,873 360,705 99,336 67,815 46,825 20,990 2,947 1975 Feb. 5................. 5.560 34,374 293,127 377,067 101,581 90,185 62,012 28,173 37,043 20,585 16,458 2,230 12................. 5.561 34,424 290,028 274,463 99,572 90,083 62,309 27,774 37,008 20,366 16,642 1,937 1 9 5,554 34,355 292,214 377,968 98,992 88,324 60,837 27,487 36,625 20,081 16,544 1,868 26................. 5,568 34,387 289,393 374,593 101,220 87,963 60,580 27,383 37,121 20,360 16,761 1,870 Mar. 5*............... 5.635 34,625 292,410 379,552 100,954 87,649 60,198 27,451 36,749 20,093 16,656 1,899 12*............... 5,653 34,649 292,896 381,166 103,194 88,235 60,427 27,808 36,486 19,958 16,528 1,684 19*............... 5.636 34,638 290,414 378,504 100,646 88,194 60,023 28,171 36,237 19,807 16,430 2,668 26*............... 5,633 34,654 287,421 375,673 102,137 88,932 60,494 28,438 35,860 19,499 16,361 1,922 New York City 1974 Mar. 6................. 1 ,382 8,409 62,920 78,935 21,656 20,545 13,942 6,603 1,185 13................. 1.386 8,415 62,398 77,972 21,238 20,921 14,310 6,611 1,601 2 0 1,382 8,449 63,250 78,519 21,169 20,829 14,182 6,647 1,750 27................. 1.386 8,441 64,061 79,016 21,804 21,287 14,539 6,748 1,779 1975 Feb. 5................. 1,570 8.987 72,393 86,440 22.913 30,275 20,290 9,985 9,340 5,578 3,762 1,251 12................. 1.579 8.988 71,460 86,143 21,768 30,179 20,488 9,691 9,239 5,484 3,755 1.236 1 9 1,582 8,979 73,082 88,004 22,568 30,036 20,234 9,802 9,146 5,462 3,684 1.236 26................. 1.580 8,984 71,449 86,245 23,414 30,139 20,250 9,889 9,027 5,371 3,656 1,008 Mar. 5*................ 1,616 9,065 72,927 88,283 23,177 30,256 20,259 9,997 8,977 5,383 3,594 1,120 12*............... 1,628 9,059 73,596 88,853 23,100 30,337 20,154 10,183 8,798 5,304 3,494 1,005 19p................. 1.631 9,053 72,422 87,934 21,934 29,999 19,814 10,185 8,737 5,204 3,533 1,902 26*................. 1.631 9,047 70,752 86,081 22.913 30,384 20,197 10,187 8,602 5,137 3,465 1,014 Outside New York City 1974 Mar. 6................... 3,626 23,993 205,476 277,795 76,644 45,332 31,076 14,256 425 13................... 3,622 24,035 206,197 279,229 77,910 45,602 31,481 14,121 673 2 0 . 3,618 23,950 207,870 279,771 76,812 45,432 31,272 14,160 709 27................. 3,611 24,003 209,812 281,689 77,532 46,528 32,286 14,242 1,168 1975 Feb. 5................. 3,990 25,387 220,734 290,627 78,668 59,910 41,722 18,188 27,703 15,007 12,696 979 12................. 3,982 25,436 218,568 288,320 77,804 59,904 41,821 18,083 27,769 14,882 12,887 701 19................. 3,972 25,376 219,132 189,964 76,424 58,288 40,603 17,685 27,479 14,619 12,860 632 26................. 3,988 25,403 217,944 288,348 77,806 57,824 40,330 17,494 28,094 14,989 13,105 862 Mar. 5*............... 4,019 25,560 219,483 291,269 77,777 57,393 39,939 17,454 27,772 14,710 13,062 779 12*............... 4,025 25,590 219,300 292,313 80,094 57,898 40,273 17,625 27,688 14,654 13,034 679 19*............... 4,005 25,585 217,992 290,570 78,712 58,195 40,209 17,986 27,500 14,603 12,897 766 26*............... 4,002 25,607 216,669 289,592 79,224 58,548 40,297 18,251 27,258 14,362 12,896 908 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. 12 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD’s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BUSINESS LOANS OF BANKS A 23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1975 1975 1975 1974 1974 Mar. Mar. Mar, Mar. Feb. 2nd 1st 26 19 12 5 26 Mar. Feb. Jan. IV half half Durable goods manufacturing: Primary metals.................................... 2,044 2,069 2,020 1 ,970 1 ,972 72 10 -43 39 77 63 140 56 Machinery............................................. 8,096 8,140 8,110 8,286 8,316 -220 4 -429 -645 -127 349 222 1 ,848 Transportation equipment................ 3,815 3,835 3,862 3.989 3,917 -102 95 10 3 365 340 705 587 Other fabricated metal products... 2,930 2,920 2,851 2,838 2.836 94 -8 -67 19 -178 253 75 503 Other durable goods.......................... 4,481 4,477 4,509 4,529 4,517 -36 -85 -257 -378 -265 512 247 909 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,836 3,837 3.990 3,986 -150 -283 -652 -1,085 484 500 984 -220 Textiles, apparel, and leather........... 3,358 3,330 3,327 3,310 48 90 -290 -152 -725 107 -618 909 Petroleum refining.............................. 2,199 2,185 2,177 2,171 28 -66 -13 -51 473 494 967 -108 Chemicals and rubber....................... 3,456 3,459 3,439 3,370 86 87 -99 74 -55 311 256 610 Other nondurable goods................... 2,194 2,194 2,163 2,160 34 -228 -118 -312 -135 158 23 338 Mining, including crude petroleum and natural gas.............................. 4,764 4,747 4,706 4,719 4,773 -9 -50 -214 -273 556 290 846 387 Trade: Commodity dealers................... 1 ,430 1 ,492 1,503 1 ,516 1 ,608 -178 -105 -364 -647 703 -195 508 -273 Other wholesale......................... 6,181 6,162 6,007 6,059 6,055 126 -146 -527 -547 349 135 484 829 Retail............................................ 6,497 6,465 6,335 6,610 6,412 85 -88 -207 -210 -246 -219 -465 1 ,099 Transportation........................................ 6,236 6,222 6,198 6,187 6,198 38 -4 -184 -150 261 22 283 139 Communication....................................... 2,126 2,155 2,262 2,275 2,248 -122 -38 -213 -373 90 -92 -2 475 Other public utilities.............................. 7,629 7,560 7,606 7,722 7,617 12 -281 -720 -989 609 1 ,088 1 ,697 1,044 Construction............................................. 5,631 5,647 5,652 5,624 5,631 -44 -427 -471 -276 231 -45 594 Services...................................................... 11,285 11,307 11 ,310 11,329 11,458 -173 -155 -341 -669 171 133 304 594 All other domestic loans....................... 9,827 9,789 9,950 9,787 9.836 -9 -126 -170 -305 387 357 744 1,117 Bankers’ acceptances............................. 2,259 2,430 2,338 2,510 2,366 -107 507 198 598 309 -365 -56 443 Foreign commercial and industrial loans................................................... 4,293 4,283 4,253 4,330 4,398 -105 104 67 66 -249 -208 -457 611 Total classified loans.............................. 104,567 104,705 104,470 105,376 105,155 -588 -810 -5,060 -6,458 2,578 4,264 6,842 12,491 Comm, paper included in total clas­ sified loans1....................................... Total commercial and industrial loans of large commercial banks........... 125,778 126,027 125,701 126,769 125,957 -179 -893 -5,025 -6,097 3,468 4,795 8,263 13,491 For notes see table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1975 1974 1975 1974 1974 Industry Dec. Mar. Feb. Jan. 31 Nov. Oct. Sept. Aug. July I IV III II 2nd 26 26 29 (Tues.) 27 30 25 28 31 half Durable goods manufactur­ ing: Primary metals..................... 1,284 1 ,237 1,249 1 ,210 1,176 1,107 1,133 1,104 1,116 74 77 28 41 105 Machinery............................ 4,071 4,117 4,138 4,145 4,049 3,970 3,896 3,789 3,572 -74 249 610 172 859 Transportation equipment. 1,672 1,712 1 ,737 1,673 1 ,586 1,570 1,535 1,419 1,373 -1 138 125 45 263 Other fabricated metal products............................ 1,312 1,323 1,243 1 ,197 1,113 1,093 1 ,066 1,000 996 115 131 112 43 243 Other durable goods........... 2,251 2,256 2,288 2,391 2,361 2,339 2,268 2,198 2,169 -140 123 161 192 284 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,561 1,614 1,703 1,763 1,674 1,661 1,649 1,604 1,604 -202 114 78 42 192 Textiles, apparel, and leather................................ 1,158 1,083 1,124 1 ,145 1,179 1,187 1 ,151 1,171 1,182 13 -6 23 39 17 Petroleum refining............... 1,483 1,458 1,542 1,518 1,272 1,208 1,097 1,048 996 -35 421 134 18 555 Chemicals and rubber........ 1,846 1,812 1,839 1,878 1,818 1,820 1,778 1,790 1 ,760 -32 100 41 134 141 Other nondurable goods.. 1,130 1,119 1,221 1,235 1,170 1,187 1,204 1,189 1,149 -105 31 33 32 64 Mining, including crude pe­ troleum and natural gas. 3,537 3,446 3,523 3,701 3,620 3,468 3,339 3,319 3,197 -164 362 209 -115 571 Trade: Commodity dealers.. 150 153 169 155 171 157 139 166 155 -5 16 -2 1 14 Other wholesale......... 1,450 1,420 1,472 1,492 1,431 1,488 1,449 1,419 1,446 -42 43 43 83 86 Retail............................ 2,283 2,298 2,369 2,594 2,602 2,578 2,527 2,529 2,512 -311 67 99 -52 166 Transportation......................... 4,524 4,505 4,455 4,550 4,379 4,370 4,349 4,322 4,353 -26 201 -76 8 125 Communication....................... 1,135 1,125 1,158 1,082 1,076 1,047 1,029 1,021 1,030 53 53 -1 64 52 Other public utilities............... 4,034 3,870 3,885 3,963 3,987 3,810 3,672 3,664 3,539 71 291 229 289 520 Construction............................ 2,197 2,191 2,224 2,294 2,281 2,237 2,272 2,218 2,183 -97 22 142 232 164 Services...................................... 5,430 5,370 5,320 5,532 5,417 5,340 5,350 5,301 5,275 -102 182 77 197 259 All other domestic loans .... 3,082 3,144 3,079 3,224 3,255 3,215 3,122 3,074 3,058 -142 102 105 209 207 Foreign commercial and in­ dustrial loans................... 2,528 2,544 2,524 2,457 2,473 2,487 2,401 2,500 2,565 71 56 -147 198 -91 Total loans................................ 48,118 47,797 48,262 49,199 48,090 47,339 46,426 45,845 45,230 -1,081 2,773 2,023 1,872 4,796 i New item to be reported as of the last Wednesday of each month. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 DEMAND DEPOSIT OWNERSHIP □ APRIL 1975 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—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—Mar................................................................................. 20.2 92.6 54.7 1.4 12.3 181.2 June................................................................................ 17.9 97.6 60.5 1.4 11.0 188.4 18.0 101.5 63.1 1.4 11.4 195.4 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................................................................................. 17.9 113.9 72.0 2.1 10.9 216.8 Dec.r............................................................................... 19.0 118.8 73.5 2.3 11.7 225.4 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—Dec................................................................................. 14.9 66.2 28.0 2.2 6.8 118.1 1974—Mar................................................................................. 14.7 61.5 27.6 2.1 6.3 112.1 Apr.................................................................................. 14.7 62.2 29.6 2.1 6.2 114.7 May................................................................................ 14.2 62.3 28.0 2.1 6.1 112.7 June................................................................................ 14.1 63.4 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.r............................................................................... 14.7 64.4 28.4 2.0 6.4 115.8 Nov.r............................................................................. 14.6 65.9 28.7 2.1 6.5 117.7 Dec.r.............................................................................. 14.8 66.9 29.0 2.2 6.8 119.7 1975—Jan.'............................................................................... 14.8 65.6 29.2 2.2 6.6 118.3 Feb.*............................................................................... 14.4 63.1 27.9 2.3 6.2 113.9 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note .—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Oct. 15, Class of Dec. 31, Dec. 31, June 30, Oct. 15, bank 1972 1973 1974 1974 bank 1972 1973 1974 1974 All commercial.... 559 507 460 All member—Cont. Insured................ 554 503 457 407 Other large banks i........... 69 58 63 66 National member 311 288 265 247 All other member i............ 313 294 267 220 State member.... 71 64 65 39 All nonmember...................... 177 155 130 All member............ 381 352 330 286 172 152 127 121 Noninsured......................... 5 3 3 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on p. A-14; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 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-l 3. But they are included in the figures for “Time de­ posits” and “Loans” for call dates as shown on pp. A-14—A-l7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 25 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 Bytype of loaii Date Total Commercial Real All and estate other industrial 1974—Dec. 4......................... 4,775 2,568 178 2,029 11......................... 4,765 2,592 182 1,991 18......................... 4,837 2,678 182 1,977 25......................... 4,901 2,821 180 1,900 1975—Jan. 1 ........................ 4,809 2,746 182 1,881 8......................... 4,641 2,679 184 1,778 15......................... 4,663 2,703 181 1,779 22......................... 4,664 2,691 181 1,792 29......................... 4,642 2,724 181 1 ,737 Feb. 5......................... 4,475 2,630 181 1 ,664 1 To bank’s own foreign branches, nonconsolidated non­ 12......................... 4,609 2,755 175 1 ,679 bank affiliates of the bank, the bank’s holding company (if 19......................... 4,510 2,661 174 1,675 not a bank), and nonconsolidated nonbank subsidiaries of 26 r....................... 4,545 2,707 179 1,659 the holding company. Note.—Series changed on Aug. 28, 1974. For a comparison Mar. 5......................... 4,688 2,741 201 1,746 of the old and new data for that date, see p. 741 of the Oct. 12......................... 4,721 2,800 201 1,720 1974 Bulletin. Revised figures received since Oct. 1974 19......................... 4,693 2,769 204 1,720 that affect that comparison are shown in note 2 to this table 26......................... 4,691 2,791 204 1,696 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di- Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed 3 placed Total Own Bills Own eign United United bills bought acct. corr. States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970........... 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 2,895 1971........... 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 3,509 1972........... 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973........... 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 3,120 1974-Jan... 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 3,275 Feb... 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 3,748 Mar... 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 4,361 Apr... 44,677 6,228 28,752 9,697 2,270 4,564 10,692 3,232 2,744 488 216 700 6,544 2,900 2,833 4,959 May.. 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 5,876 June.. 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 6,668 July.. 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 8,323 Aug... 47,967 5,308 31,774 10,885 2,425 6,350 16,167 3,388 2,866 522 277 1,202 11,300 3,585 3,933 8,649 Sept.. 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 8,703 Oct... 51,754 5,242 32,509 14,003 2,046 6,408 16,882 3,291 2,872 419 218 2,037 11,335 3,793 3,759 9,330 Nov.. 51,883 4,860 32,491 14,532 1,947 6,697 17,553 3,789 3,290 499 611 1,702 11,452 3,810 3,709 10,035 Dec.. 49,070 4,611 31,765 12,694 1,874 6,444 18,484 4,226 3,685 542 999 981 12,278 4,023 4,067 10,394 1975—Jan.. 51,528 5,029 31,851 14,648 1,946 6,625| 18,602 4,357 3,903 454 966 384 12,894 4,120 4,314 10,168 1 Financial companies are institutions engaged primarily in activities 4 Nonfinancial companies include public utilities and firms engaged such as, but not limited to, commercial, savings, and mortgage banking; primarily in activities such as communications, construction, manufac­ sales, personal, and mortgage financing; factoring, finance leasing, and turing, mining, wholesale and retail trade, transportation, and services. other business lending; insurance underwriting; and other investment 5 Included in dealer- and directly-placed financial company columns. activities. Coverage of bank-related companies was expanded in Aug. 1974. Most 2 As reported by dealers; includes all financial company paper sold in of the increase resulting from this expanded coverage occurred in directlythe open market. placed paper. 3 As reported by financial companies that place their paper directly with investors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 INTEREST RATES □ APRIL 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1974—Apr. 11 934—98/10— 1974—June 3... 1974—Oct. 28........... 1034-11- 1975—Feb. 3. 8 34-9-914*- 10a 11% 1H/4-- 9V4-934 15, 10a-107io- 7.. 1114-111/2"- 11% 4, 834-9-914* 10% 116/10 10. 83/4-9b 19, 10-1 Oi/io- 10.. ll%- Nov. 4........... 1034-1 la- 18. 81/2-834 .-9 10y4m 21.. 1114-111,4 ai 111/4 24, 81/2b-834 24.. 111,4 a-1134 11........... 101/2-1034- Apr. 23. WArn-lQi/io 11a Mar. 3, 814-8I/2B 24. 10V4m- 25.. 111/4 a-11 %■ 14........... 10i/4-1034a- 5, 81/4-81/2 104/10- 118/10 11 6, 734-814-- 10y2 26.. llVi-1134 a- 18........... 10-10V4- 81/2 25. 10i4-104/io- 118/10 1034- 10 734_8a-8i4 10%. 28.. 1134 a-l 18/!, 19........... 10-1014- 17, 734-8a 26. 104/10- 10%- 18, 7i/2-734b-8 IOI/2 a- July 3.. 1134H-118/10. 1034- 24, 71/2 --734-8 10^-11 12 25........... 10-1014- 30. lOVia- 5.. 1 l8/io-12a 101/2- 106/io— 9.. 12a-12i4 1034-11 23.. Dec. 2........... 934-10-1014 ’W - -10%. May 2. 10%-10«/io- 1034 a-l 1 Aug. 20.. 1034-12B 1975—Jan. 9........... 91/2-10- 3. 106/io-10%a 101/4-- -11 Sept. 26.. IO34-IH/2- 101/2 6. IO6/10-IO34- 1134-12B 13........... 91/2-934-10- 11a 1014- 7. 11a Oct. 7.. 1034-1H/2- 15........... 91/2-934- 10. 11-1114" 11 34 a—12 1 Oa-1014 13. lli4«-ll4/io 15.. IO34-H14- 20........... 91/2-934 a-l 0 17. II14-H-V10 H%- 28........... 91/2--934-10 -lli/2a 1134a 29........... 91/2--934 20, ll^a-1134 21.. IO34-H14- 11%- 1134 Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two-tier or “dual prime ate keyed to money market variables, a denotes the predominant prime rate,” this table shows only the “large-business prime rate,” which is the ate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1975 1974 1975 1974 1975 1974 1975 1974 1975 1974 1975 1974 Short-term 35 centers..................................... 9.94 11.64 10.94 11 .81 10.73 12.04 10.25 11 .97 9.93 11.80 9.73 11 .44 New York City........................ 9.61 11.35 10.82 12.31 10.60 12.11 10.14 12.05 9.74 11.56 9.50 11 .21 7 Other Northeast................... 10.31 12.22 12.07 13.03 11 .31 12.84 10.64 12.46 10.09 12.34 9.96 11 .91 8 North Central....................... 9.87 11.66 10.55 11 .54 10.49 11 .99 10.09 11 .93 9.85 11.77 9.74 11 .53 7 Southeast............................... 10.24 11.52 10.59 11 .44 10.52 11 .34 10.21 11 .43 10.22 11.62 10.12 11 .62 8 Southwest.............................. 10.01 11 .56 10.36 10.87 10.47 11 .64 10.11 11 .77 9.83 11 .74 9.84 11 .36 4 West Coast............................ 9.99 11 .48 11 .23 12.26 10.75 11.99 10.22 11 .86 10.05 11.56 9.84 11 .32 Revolving credit 35 centers..................................... 9.20 11 .60 11 .03 12.71 10.56 12.00 10.14 11 .99 10.18 11 .60 8.98 11 .56 New York City........................ 7.84 11 .60 10.98 12.25 10.59 11 .97 9.98 11 .89 9.87 11 .77 7.61 11 .57 7 Other Northeast................... 10.83 12.26 12.05 12.08 10.60 11 .98 9.97 11 .68 10.98 11 .75 10.90 12.50 8 North Central....................... 10.32 11.82 11 .77 13.34 11.14 12.29 10.97 12.57 10.24 11 .79 10.22 11 .72 7 Southeast............................... 9.77 11.53 10.61 10.41 11 .41 10.35 13.09 9.00 10.98 9.76 11 .25 8 Southwest.............................. 10.54 12.06 11 .61 13.03 11.18 12.33 10.57 12.28 10.75 11 .82 10.37 12.06 4 West Coast............................ 9.52 11.39 10.67 12.70 10.13 11.89 9.77 11 .68 10.17 11 .57 9.40 11 .33 Long-term 35 centers..................................... 10.26 12.16 10.54 11 .74 10.55 12.04 10.57 12.09 10.16 11.71 10.21 12.23 New York City........................ 9.62 11 .96 9.27 8.87 10.82 11 .45 10.46 12.37 9.78 12.02 9.53 11 .93 7 Other Northeast................... 10.48 12.35 10.99 12.66 10.77 12.52 10.51 11 .98 10.20 11.55 10.49 12.61 8 North Central....................... 11.33 12.29 10.32 10.90 10.25 11.89 10.17 11 .90 9.45 11 .75 11 .81 12.44 7 Southeast............................... 10.42 13.81 9.67 11 .21 10.47 11.45 11.11 12.14 11 .95 12.02 9.16 17.29 8 Southwest.............................. 9.87 12.27 11 .99 12.39 10.12 12.18 10.46 12.28 10.09 12.68 9.60 12.49 4 West Coast............................ 10.07 12.01 8.36 12.75 10.77 11.99 11 .28 12.04 10.94 11 .60 9.78 12.06 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTEREST RATES A 27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills6 6-month bills6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days 3 Rate Market Rate Market 1-year issues 7 days months months 2 on new yield on new yield bill (mar­ Other7 issue issue ket yield)6 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1974. 10.05 9.87 8.62 9.92 10.51 7.886 7.84 7.926 7.95 7.71 8.25 7.81 1974—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 Dec.. 9.18 8.98 8.50 9.19 8.53 7.179 7.15 7.091 7.11 6.79 7.33 7.22 1975—Jan... 7.39 7.30 7.31 7.54 7.13 6.493 6.26 6.525 6.36 6.27 6.74 7.29 Feb.. 6.36 6.33 6.24 6.35 6.24 5.583 5.50 5.674 5.62 5.56 5.97 6.85 Mar.. 6.06 6.06 6.00 6.22 5.54 5.544 5.49 5.635 5.62 5.70 6.10 7.00 Week ending— 1974—Dec. 7., 9.23 9.05 8.50 9.55 9.02 7.524 7.44 7.564 7.34 7.15 7.65 7.46 14., 8.95 8.78 8.50 9.03 8.86 7.172 7.24 6.911 7.04 6.79 7.26 7.16 21., 9.20 9.00 8.50 9.03 8.72 7.058 6.92 6.858 6.99 6.56 7.16 7.06 28., 9.28 9.06 8.50 9.16 8.45 6.963 7.01 7.032 7.11 6.67 7.26 7.17 1975—Jan. 9.13 8.84 8.47 9.08 7.35 7.113 6.96 7.101 6.99 6.70 7.17 7.26 7.95 7.83 7.98 8.33 7.70 6.698 6.59 6.682 6.64 6.45 6.91 7.23 7.63 7.53 7.65 7.66 7.22 6.678 6.54 6.646 6.54 6.44 6.95 7.32 6.85 6.85 6.78 7.03 7.17 6.369 5.98 6.373 6.14 6.15 6.66 7.36 Feb. 1. 6.55 6.48 6.38 6.59 6.99 5.606 5.68 5.825 5.92 5.87 6.31 7.23 6.50 6.45 6.25 6.34 6.46 5.669 5.61 5.736 5.65 5.51 5.95 6.91 15. 6.38 6.34 6.25 6.47 6.28 5.800 5.65 5.800 5.70 5.60 6.06 6.92 22. 6.31 6.28 6.25 6.26 6.29 5.408 5.25 5.483 5.43 5.44 5.84 6.71 Mar. 1. 6.25 6.25 *6.23 c6.33 6.15 5.455 5.47 5.675 5.66 5.67 6.04 6.83 6.25 6.25 6.18 6.37 5.88 5.637 5.57 5.742 5.68 5.69 6.07 6.86 15. 6.08 6.08 6.05 6.29 5.44 5.622 5.46 5.655 5.56 5.62 6.03 6.88 22. 5.95 5.95 5.90 6.11 5.38 5.376 5.41 5.473 5.54 5.66 6.06 7.05 29. 5.91 5.91 5.88 6.11 5.53 5.542 5.53 5.669 5.69 5.81 6.20 7.19 1 Averages of the most representative daily offering rate quoted by of transactions at these rates. For earlier statement weeks, the averages dealers. were based on the daily effective rate—the rate considered most repre­ 2 Averages of the most representative daily offering rate published by sentative of the day’s transactions, usually the one at which most trans­ finance companies, for varying maturities in the 90-179 day range. actions occurred. 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of 5 Except for new bill issues, yields are averages computed from daily the range of daily dealer closing rates offered for domestic issues; prior closing bid prices. data are averages of the most representative daily offering rate quoted by 6 Bills quoted on bank-discount-rate basis. dealers. 7 Selected note and bond issues. 4 Seven-day averages for week ending Wednesday. Beginning with statement week ending July 25, 1973, weekly averages are based on the Note.—Figures for Treasury bills are the revised series described on p. daily average of the range of rates on a given day weighted by the volume A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 INTEREST RATES a APRIL 1975 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 Total1 ( S t l e t o r a n m te g ) s ­ Total 1 Baa New ce R n e t ­ ly Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 *>11.76 1974—Ma r 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 14.62 Oct.......... 7.22 6.56 6.21 6.99 10.16 10.23 9.80 9.27 10.41 9.53 9.64 10.31 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 Dec.......... 6.78 7.04 6.65 7.50 9.53 9.56 9.56 8.89 10.55 9.23 9.59 10.02 8.78 5.43 2>i3.i4 1975—Ja..............n 6.68 6.89 6.39 7.45 9.36 9.45 9.55 8.83 10.62 9.19 9.52 10.10 8.41 5.07 Feb........... 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 Mar.......... 6.73 6.70 6.28 7.25 9.35 9.38 9.28 8.67 10.29 9.05 9.25 9.67 8.04 4.42 Week ending— 1975—Feb. 1. 6.67 6.63 6.00 7.30 9.00 9.21 9.48 10.59 9.16 9.46 10.00 8.56 4.79 8. 6.59 6.36 5.90 7.00 8.89 9.12 9.42 10.52 9.11 9.39 9.95 8.17 4.68 15. 6.58 6.31 5.85 6.95 9.02 9.10 9.35 10.46 9.02 9.33 9.87 8.07 4.63 22. 6.63 6.43 6.00 7.05 9.04 9.08 9.29 10.39 8.97 9.30 9.79 8.00 4.54 Mar. 1. 6.64 6.51 6.10 7.10 8.94 9.06 9.26 10.32 8.95 9.26 9.73 8.02 4.58 8. 6.67 6.51 6.10 7.10 8.91 9.17 9.25 10.31 8.98 9.24 9.67 7.92 4.45 15. 6.67 6.64 6.20 7.20 9.27 9.31 9.24 10.28 9.01 9.22 9.63 8.06 4.42 22. 6.75 6.76 6.35 7.30 9.60 9.41 9.28 10.28 9.07 9.29 9.66 8.02 4.39 29. 6.83 6.89 6.45 7.40 9.60 9.62 9.34 10.29 9.15 9.29 9.70 8.17 4.42 Number of issues2.. . 13 20 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors 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, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent 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 as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of nondata. callable issues—12 industrial and 2 public utility. Common stock ratios Bonds: Monthly and weekly yields are computed as follows: (1) U.S. on the 500 stocks in the price index. Quarterly earnings are seasonally Govt., averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more; from Federal Reserve Bank of New York. (2) State and local NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Stock Market Customer Financing: Note.—Annual data are averages of weekly or monthly figures. Monthly 1 Margin credit includes all credit extended to purchase or carry stocks and weekly data are averages of daily figures unless otherwise noted and are or related equity instruments and secured at least in part by stock (Dec. computed as follows: U.S. Govt, bonds, derived from average market 1970 Bulletin, p. 920). Credit extended by brokers is end-of-month data yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year for member firms of the New York Stock Exchange. June data for banks bond. Municipal and corporate bonds, derived from average yields as are universe totals; all other data for banks represent estimates for all computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- commercial banks based on reports by a reporting sample, which ac­ year bond; Wed. closing prices. Common stocks, derived from com­ counted for 60 per cent of security credit outstanding at banks on June 30, ponent common stock prices. A verage daily volume of trading, normally 1971. conducted 5 days per week for 5l/i hours per day, or 21l/z 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

APRIL 1975 □ SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer- trading in Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43=10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m 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 ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e 1 ( 9 A 1 7 0 u 3 0 g ) = . NYSE AMEX 1970......................... 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971......................... 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 rl 5,381 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 1974......................... 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1974—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 76.2 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 Dec............... 58.96 68.6 56.1 67.07 74.80 34.81 32.85 35.41 38.32 26.02 26.18 39.27 59.88 15,007 2,359 1975—Jan................ 59.70 70.9 56.4 72.56 80.50 37.31 38.19 38.56 41.29 28.12 29.55 44.85 68.31 19,661 2,117 Feb................ 60.27 74.1 56.6 80.10 89.29 37.80 40.37 42.48 46.00 30.21 31 .31 47.59 76.08 22,311 2,545 Mar............... 59.33 70.9 56.2 83.78 93.90 38.35 39.55 44.35 48.63 31.62 31.04 47.83 79.15 22,680 2,665 Week ending— 1975—Mar. 1 60.00 72.7 56.5 80.74 90.15 38.14 39.84 42.69 46.46 30.40 31 .07 46.33 76.78 18,568 2,112 8 . . . . 59.82 72.9 56.4 83.50 93.41 38,68 40.33 44.10 48.18 31.80 31.45 47.58 77.53 26,014 2,625 15........ 59.81 71.8 56.2 84.28 94.41 38.66 40.02 44.58 48.81 31.98 31.43 47.93 78.61 24,439 3,030 22 .... 59.14 69.4 56.3 84.50 94.79 38.42 39.05 44.79 49.20 31.61 31.00 48.54 80.83 22,375 2,919 29 .... 58.54 69.7 56.0 82.73 92.61 37.59 38.32 43.88 48.25 30.99 30.23 47.31 79.54 18,297 2,082 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unreguat brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 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................................... 6,297 5,260 1,037 5,080 991 172 34 8 12 2,072 395 1,360 July.................................... 5,948 4,925 1,023 4,760 978 158 33 7 12 2,091 402 1,391 Aug.................................... 5,625 4,672 953 4,510 912 156 29 6 12 2,119 429 1,382 Sept.................................... 5,097 c4,173 924 4,020 881 148 31 5 12 2,060 437 1,354 Oct..................................... 4,996 4,080 916 3,930 872 145 32 5 12 2,024 431 1,419 Nov.................................... 4,994 4,103 891 3,960 851 139 29 4 11 2,054 410 1,447 Dec.................................... 4,836 3,980 856 3,840 815 137 30 3 11 2,064 411 1,424 1975—Jan..................................... 4,934 4,086 848 3,950 806 134 29 2 13 1,919 410 1,446 Feb..................................... 5,099 4,269 830 4,130 783 136 34 3 13 1,897 478 1,604 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ APRIL 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil­ End of period credit balance E pe n r d i o o d f lio o n f s 80 or Under status 60 per cent Less than (millions dol­ more 70-79 60-69 50-59 40-49 40 or more 60 per cent of dollars) lars) l 1974—Feb....................... 39.4 43.3 24.9 6,740 1974—Feb... 5,230 5.4 7.4 13.3 22.6 28.0 23.3 40.0 41.2 18.9 6,784 Mar.. 5,330 5.0 7.0 11.4 19.4 30.2 27.1 39.6 42.3 19.4 6,526 Apr.. 5,370 4.4 6.0 9.9 16.5 26.5 37.0 37.8 40.0 22.2 6,544 May. 5,180 4.2 5.1 8.5 13.7 23.3 45.3 40.3 37.4 22.4 6,538 June. 5,080 4.0 5.0 7.7 12.6 21.8 49.1 July...................... 40.2 36.5 23.2 6,695 July.. 4,760 4.0 4.8 7.9 13.3 22.2 47.9 39.9 34.0 26.0 6,783 Aug.. 4,510 3.5 4.0 6.6 11.2 18.4 56.3 40.7 31.2 27.0 7,005 Sept.. 4,020 3.5 3.9 6.1 10.2 18.0 58.3 40.9 35.1 24.0 7,248 Oct... 3,930 4.6 5.5 9.4 16.8 27.3 36.4 40.0 34.6 25.3 6,926 Nov.. 3,960 4.2 5.1 8.5 14.8 24.4 42.8 41.1 32.4 26.5 7,013 Dec.. 3,840 4.3 4.6 8.8 13.9 23.0 45.4 1975—Jan........................ 41. 1 39.3 19.8 7,185 1975—Jan. . 3,950 5.6 7.3 13.5 24.6 28.1 21.2 Feb....................... 42.2 40.1 17.8 7,303 Feb.. 4,130 5.9 7.2 14.6 25.4 28.5 18.4 Note.—Special miscellaneous accounts contain credit balances that i Note 1 appears at the bottom of p. A-28. 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 2 End of period M ga o g r e t­ Other G U o . v S t . . S g l a o o t n a c v d a t t e l . C o r a t o h a n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i T e e a a t s n o b i n e e e t i r d s a l r v i a l ­ e l De it p s os­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1971............... 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19723............. 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973............... 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............... 74,891 3,812 2,555 930 22,550 2,167 2,645 109,550 98,701 2,888 7,961 664 418 232 726 2,040 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 Oct---- 74,835 3,981 2,525 870 22,190 1,303 2,608 108,313 97,252 3,158 7,904 775 374 360 792 2,301 Nov.... 74,913 4,226 2,553 877 22,201 1,406 2,633 108,809 97,582 3,291 7,936 724 398 317 743 2,182 Dec.r.. 74,891 3,812 2,555 930 22,550 2,167 2,645 109,550 98,701 2,888 7,961 664 418 232 726 2,040 1975—Jan.... 74,957 4,287 2,571 967 22,979 1,706 2,663 110,130 99,211 2,948 7,971 726 400 225 620 1,971 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. 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 Bank, which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ SAVINGS INSTITUTIONS A 31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other End of period assets gages estate loans assets United State and Foreign1 Total Bonds Stocks Total States local 1971................................................ 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972............................................... 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973............................................... 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............................................... 263,817 11,890 4,396 3 ^653 3; 841 119,580 97,430 22,150 86,258 8,249 22,899 14,941 1973—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 li;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 Oct.................................... 261,778 11,748 4,319 3.603 3.826 120.198 97,515 22,683 85,054 8,087 22,503 14,188 Nov................................... 262,738 11,820 4,363 3,618 3,839 120,176 92,892 22,284 85,529 8,143 22,710 14,360 Dec.................................... 263,817 11,890 4.396 3,653 3,841 119,580 97,430 22,150 86,258 8,249 22,899 14,941 l Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period Invest­ Total Bor­ Loans outstanding Mort­ ment Cash Other liabilities Savings Net rowed in Other at end of gages secur­ capital worth2 money 3 process period4 ities1 1971........................................ 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972........................................ 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735...................................... 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974........................................ 249,306 23,235 23,075 295,616 242,914 18,435 24,824 3,205 6,238 7,454 1974—Feb............................ 234,052 23,352 19,788 277,192 230,971 17,571 16,503 4,294 7,853 10,731 Mar........................... 236,136 23,993 20,316 280,445 235,136 17,435 16,725 4,481 6,668 12,006 Apr............................ 238,645 23,544 20,787 282,976 234,918 17,709 18,159 4,796 7,394 12,918 May.......................... 241,263 23,705 21,421 286,389 235,429 18,019 19,355 5,038 8,548 12,480 June.......................... 243,400 23,003 21,614 288,017 238,114 17,838 20,347 5,033 6,685 11,732 July........................... 245,135 23,052 21,926 290,113 237,631 18,101 21,708 4,867 7,806 10,844 Aug........................... 246,713 22,081 22,361 291,155 236,472 18,377 22,891 4,584 8,831 9,851 Sept........................... 247,624 21,166 22,758 291,548 237,877 18,201 24,136 4,226 7,108 9,126 Oct............................. 248,189 22,126 23,016 293,331 238,304 18,444 24,544 3,809 8,230 8,127 Nov........................... 248,711 23,249 23,306 295,266 239,530 18,674 24,550 3,444 9,068 7,723 Dec............................ 249,306 23,235 23,075 295,616 242,914 18,435 24,824 3,205 6,238 7,454 1975—Jan............................. 249,734 25,382 23,338 298,454 246,182 18,585 23,398 3,022 7,267 7,887 Feb.*........................ 250,831 26,969 23,764 301,564 249,459 18,816 21,944 3,012 8,333 8,785 1 Excludes stock of the Federal Home Loan Bank Board. Compensating in other assets. The effect of this change was to reduce the mortgage changes have been made in “Other assets.” total by about $0.6 billion. 2 Includes net undistributed income, which is accrued by most, but not Also, GNMA-guaranteed, mortgage-backed securities of the pass­ all, associations. through type, previously included in “Cash” and “Investment securities” 3 Advances from FHLBB and other borrowing. are included in “Other assets.” These amounted to about $2.4 billion at 4 Data comparable with those shown for mutual savings banks (on the end of 1972. opposite 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 Govt.-insured mortgage- preceding year are preliminary even when revised. type investments, previously included in mortgage loans, are included Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 FEDERAL FINANCE □ APRIL 1975 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt. Trea­ financ­ deficit debt Agency accouints i Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes 2 ing S is p s e u c e ia s l Other balance Fiscal year: 197!................... 188,392 211,425 -23,033 27,211 -347 6,616 801 19,448 710 -710 3,587 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 1,623 19,442 1,362 1,108 6,003 197 3 232,225 246,526 -14,301 30,881 216 11,712 109 19,275 2,459 -1,613 -4,129 197 4 264,932 268,392 -3,460 16,918 903 13,673 1,140 3,009 -3,417 898-2,063 Half year: 1973—Jan.-June 126,164 127,947 -1,784 8,843 -661 5,716 577 1,889 1,503 -93 1,305 July-Dee. 124,256 130,362 -6,106 11,756 478 5,376 845 6,014 - 2,202 -319 -2,429 1974—Jan.-June 140,679 138,032 2,647 5,162 426 8,297 295 -3,004 -1,215 1,089 231 July-Dee. 139,870 153,399 -13,591 18,429 -646 2,840 150 14,794 -3,228 248 -4,183 Month: 1974—Fe b 20,224 r21,039 *•-815 2,503 -15 2,489 159 -160 -2,877 ^ — 101 *•- 2,003 Mar......... 16,818 22,905 -6,086 3,813 394 -155 52 4,309 690 191 2,657 Apr.......... 29,657 22,273 7,384 -2,597 37 -93 35 -2,502 3,125 1,319 -438 May........ 19,243 23,981 -4,739 2,773 -28 2,947 -211 8 -5,032 - 1,120 — 1,423 June........ 31,259 24,172 7,087 385 29 4,178 121 -3,886 2,711 239 -252 July......... 20,939 24,411 -3,472 1,109 -126 -858 198 1,644 -2,705 -658 -1,534 Aug........ 23,620 25,408 -1,787 6,447 -56 4,133 -25 2,283 - 1,012 83 — 1,425 Sept......... 28,377 24,712 3,666 -326 -167 -1,311 250 569 3,244 797 —194 Oct.......... 19,633 26,460 -6,827 -1,242 -242 -2,053 -152 721 -6,445 -338 -677 Nov......... 22,292 24,965 -2,673 5,139 -17 653 -31 4,500 816 96 -915 Dec......... 24,946 27,442 -2,496 7,300 -38 2,276 -90 5,077 2,874 268 561 1975—Ja n 25,020 28,934 -3,914 1,475 -23 -2,173 -42 3,667 -58 319 508 Feb.......... 19,975 26,200 -6,225 5,571 -306 1,224 -495 4,535 -2,359 -132 801 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 4 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S G p I e n o c v v ia e t, l s t a m cc e o n u ts n t o s f 1 S n L p o e e te s c s i s a : 2 l E T q o u t a a l l s: s c p p o G r o N r i n o v p o s v a s w o t . t e — . r - e 5 d issues Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 Calendar year: 197 3 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 59,857 197 4 3,113 2,749 70 5,932 492,664 11,367 117,761 25,423 (6) 360,847 Month: 1974—Fe b 2,017 5,579 69 7,665 470,687 11,581 108,044 25,276 825 348,123 59,282 Mar.... 1,372 6,915 69 8,356 474,500 11,975 107,889 25,328 825 352,433 59,897 Apr....... 2,814 8,576 89 11,480 471,903 12,012 107,796 25,363 825 349,931 61,151 May.... 3,134 3,226 6,448 474,675 11,984 110,743 25,152 825 349,939 62,650 June..., 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 July.... 3,822 2,544 6,454 6475,344 11,895 114,063 25,471 (6) 347,706 68,243 Aug---- 3,304 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 69,951 Sept___ 3,211 5,384 92 8,687 481,466 11,664 116,885 25,696 350,549 73,068 Oct....... 789 1,381 71 2,241 480,224 11,422 114,832 25,544 351,270 75,343 Nov.. .. 1,494 rl ,571 r3,066 485,364 11,404 115,485 25,513 355,770 75,706 Dec. 3,113 2,745 70 5,928 492,664 11,367 117,761 25,423 360,847 76,459 1975—Ja n 3,541 2,115 220 5,876 494,139 11,343 115,588 25,380 364,514 76,921 Feb...... 2,884 410 220 3,514 499,710 11,037 116,812 24,886 369,049 1 With the publication of the Oct. 1974, Federal Reserve Bulletin, taries” (deposits in certain commercial depositaries that have been con­ these series have been corrected (beginning in fiscal year 1971) to exclude verted from a time to a demand basis to permit greater flexibility in special issues held by the Federal home loan banks and the General Treasury cash management). Services Adm. Participation Certificate Trust, which are not Govt, ac­ 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. counts. Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate 2 Represents non-interest-bearing public debt securities issued to the credit banks and banks 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

APRIL 1975 o FEDERAL FINANCE A 33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus­ Estate Misc. Elec­ Non­ Gross contribution2 Un- Other taxes toms and re­ With­ tion with­ Re­ Net re­ Re­ empl. net Net gift ceipts4 held Cam­ held funds total ceipts funds insur. re­ total paign Pay­ Self- ceipts 3 Fund1 roll empl. taxes 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 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: 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-Dee. 124,256 52,964 6,207 999 58,172 16,589 1,49429,965 201 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 July-Dee. 139,807 61,377 7,099 1,016 67,460 18,247 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,341 Month: 1974—Fe b 20,224 9,503 945 1,851 8,599 1,066 248 7,080 214 761 346 8,400 1,315 239 423 429 Mar........ 16,818 9,662 2,186 8,631 3,219 5,887 338 5,059 228 96 338 5,721 1,211 277 465 377 Apr......... 29,657 9,946 11,118 6,313 14,764 5,893 430 4,390 1,603 552 351 6,896 1,275 286 371 602 May........ 19,243 10,083 1,204 5,651 5,641 1,318 218 7,196 311 2,190 339 10,036 1,391 295 437 343 June....... 31,259 10,611 4,077 462 14,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 July........ 20,939 10,227 957 378 10,806 1,796 310 5,005 418 358 5,781 1,517 325 418 607 Aug........ 23,620 10,223 491 229 10,485 ! ,084 256 7,813 1,363 368 9,544 1,415 355 453 540 Sept........ 28,377 9,754 4,323 130 13,947 6,082 435 5,428 240 62 389 6,119 1,465 305 352 543 Oct......... 19,633 10,106 561 78 10,590 1,717 511 4,558 221 363 5,142 1,401 347 370 578 Nov........ 22,292 10,638 305 111 10,832 1,111 314 6,633 762 353 7,748 1,474 319 350 773 Dec......... 24,946 10,428 461 90 10,799 6,458 190 4,982 "l4 89 356 5,441 1,489 307 341 301 1975—Ja............n 25,020 10,252 5,366 132 15,487 1,745 557 4,802 223 245 402 5,673 1,351 307 385 629 Feb......... 19,975 10,957 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 Budget outlays Com- Gen­ Period Na­ Nat­ Com­ mun. Educa­ Health eral Intrational Intl. Space Agri­ ural merce deve­ tion and Vet­ Inter­ Gen­ reve­ govt. Total de­ affairs re­ cul­ re­ and lop. and wel­ erans est eral nue trans­ fense search ture sources transp. and man­ fare govt. shar­ ac­ hous­ power ing tions5 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 4,5 -7,858 197 3 246,526 76,023 3,132 3,311 6,051 559 12,505 4,162 10,822 91,343 12,004 22,836 5,519 6 6,636 -8,379 197 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: 1973—Jan.-June, 127,947 40,694 1,493 1,635 1,435 230 6,306 1,525 5,690 48,130 6,264 12,217 2,650 4,019 -4,340 July-Dee.. 130,362 37,335 1,567 1,501 3,472 764 7,387 3,215 4,772 48,950 6,518 13,493 3,112 3,032 -4,756 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 July-Dee.. 153,339 42,553 1,807 1,596 427 2,162 8,302 4,787 5,103 62,181 7,838 15,320 3,792 3,082 -5,551 Month: 1974—Fe b 21,030 6,509 224 231 138 363 198 932 8,979 1,088 2,466 520 -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 Nov............ 24,965 7,673 373 297 -155 -474 1 ,147 850 837 10,645 I ,341 2,688 529 4 -791 Dec.......... 27,442 7,584 342 288 326 616 1,393 899 856 11,245 1,636 2,475 810 -1,027 1975—Ja.............n 28,934 7,307 274 298 806 650 915 1,157 1,227 11,697 1,399 2,538 489 1,528 -1,350 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, l iscal Year 1974. 1975. Breakdown docs not add to total because special allowances for 2 Old-age, disability, and hospital insurance, and Railroad Retirement contingencies, Federal pay increase (excluding Dept, of Defense), and accounts. acceleration of energy research and development, totaling $1,561 million, 3 Supplementary medical insurance premiums and Federal employee are not included. retirement contributions. 4 Deposits of earnings by F. R. Banks and other miscellaneous receipts. Note.—Half years may not add to fiscal year totals due to revisions in 5 Consists of Govt, contributions for employee retirement and of interest series that are not yet available on a monthly basis. received by trust funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 U.S. GOVERNMENT SECURITIES □ APRIL 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S ss p u e e c s i a 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Bonds 2 b v i o b e n r le d t­ s Total 3 F is o su re e i s g n 4 S b a o a v n n in d d g s s notes 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—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—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. 485.4 368.2 277.5 114.6 129.6 33.3 2.3 88.4 23.1 63.6 115.9 Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—Jan.. 494.1 377.1 286.1 120.0 131.8 33.3 2.3 88.8 23.0 64.2 116.0 Feb. 499.7 381.5 289.8 123.0 132.7 34.1 2.3 89.4 23.3 64.5 117.2 Mar. 509.7 392.6 300.0 124.0 141.9 34.1 2.3 90.4 24.0 64.8 116.0 1 Includes non-interest-bearing debt (of which $616 million on Feb. 28, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1975, 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 i t s l c ag G t U a e r o n u n .S v c d s t i . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e 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 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—Dec................ 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—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 M ay.............. 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................ 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 Nov............... 485.4 139.0 81.0 265.3 54.5 2.5 5.9 11.0 28.7 63.2 21.1 58.3 20.1 Dec................ 492.7 141.2 80.5 271.0 56.5 2.5 6.1 11 .0 29.2 63.4 21 .5 58.4 22.4 1975—Jan................. 494. 1 139.0 81.3 273.8 54.5 2.6 6.2 11.5 30.6 63.7 22.6 61.5 20.6 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 pensions 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

APRIL 1975 □ U.S. GOVERNMENT SECURITIES A 35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 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—Dec. 31........................................................ 282,891 148,086 119,747 28,339 85,311 27,897 14,833 6,764 1975—Jan. 31........................................................ 286,133 149,383 121,044 28,339 87,339 27,894 14,795 6,722 Feb. 28........................................................ 289,827 154,782 122,995 31,787 85,181 27,494 15,508 6,863 U.S. Govt, agcncies and trust funds: 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—Dec. 31................................................ 21,391 2,400 588 1,812 7,823 4,721 4,670 1,777 1975—Jan. 31................................................ 21,374 2,550 640 1,910 7,737 4,643 4,672 1,773 Feb. 28................................................ 20,888 2,481 512 1,969 7,957 3,980 4,802 1,667 Federal Reserve Banks: 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—Dec. 31................................................ 80,501 45,388 36,990 8,399 23,282 9,664 1,453 713 1975—Jan. 31................................................ 81,344 45,575 37,076 8,499 23,797 9,764 1,457 751 Feb. 28................................................ 81,086 46,956 35,909 11,047 21,377 10,326 1,476 950 Held by private investors: 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—Dec. 31................................................ 180,999 100,298 82,168 18,130 54,206 13,512 8,710 4,274 1975—Jan. 31................................................ 183,415 101,258 83,328 17,930 55,805 13,487 8,666 4,198 Feb. 28................................................ 187,853 105,345 86,574 18,771 55,847 13,188 9,230 4,246 Commercial banks: 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—Dec. 31......................................... 42,755 14,873 6,952 7,921 22,717 4,151 733 280 1975—Jan. 31......................................... 41,372 13,057 5,287 7,770 23,251 4,103 718 244 Feb. 28......................................... 43,756 14,487 5,978 8,509 23,735 4,502 736 296 Mutual savings banks: 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—Dec. 31......................................... 1,477 399 207 192 614 174 202 88 1975—Jan. 31........................................ 1,480 292 126 166 678 203 197 110 Feb. 28........................................ 1,543 330 128 202 660 207 199 147 Insurance companies: 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—Dec. 31......................................... 4,741 722 414 308 1,061 1,310 1,297 351 1975—Jan. 31......................................... 4,804 743 447 296 1,075 1,328 1,312 346 Feb. 28......................................... 4,824 652 355 297 1,296 1,214 1,340 321 Nonfinancial corporations: 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—Dec. 31......................................... 4,246 2,623 1,859 764 1,423 115 26 59 1975—Jan. 31........................................ 4,364 2,340 1,643 697 1,778 150 49 48 Feb. 28........................................ 4,407 2,649 1,812 837 1,519 169 25 44 Savings and loan associations: 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—Dec. 31......................................... 1,663 350 87 263 835 282 173 23 1975—Jan. 31........................................ 1,664 323 83 240 866 282 169 25 Feb. 28........................................ 1,701 419 148 271 861 238 166 18 State and local governments: 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—Dec. 31......................................... 7,864 4,121 3,319 802 1,796 815 800 332 1975—Jan. 31........................................ 8,552 4,867 4,057 810 1,681 814 855 334 Feb. 28......................................... 9,015 5,417 4,747 670 1,756 609 917 316 All others: 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—Dec. 31......................................... 118,253 77,210 69,330 7,880 25,760 6,664 5,479 3,141 1975—Jan. 31......................................... 121,178 79,636 71,686 7,950 26,476 6,607 5,365 3,093 Feb. 28........................................ 122,605 81,390 73,405 7,985 26,018 6,249 5,846 3,102 Note.—Direct public issues only. Based on Treasury Survey of banks, and 733 insurance companies combined, each about 90 per cent; Ownership. (2) 462 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) 5,563 commercial banks, 476 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES □ APRIL 1975 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1974—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 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 Nov.............................. 3,977 2,872 635 384 86 560 1,049 1,144 1,224 1,186 Dec............................... 4,111 3,126 550 369 67 671 1,196 1,120 1,124 1,087 1975—Jan................................ 5,415 3,495 1,514 303 104 887 1,549 1,503 1,478 1,244 Feb............................... 5,770 3,353 1,521 709 187 698 2,044 1,511 1,518 1,233 Week ending— 1975—Feb. 5....................... 7,439 3,453 2,334 1,262 390 943 2,683 1,954 1,859 1,313 12....................... 6,358 3,763 1,432 905 259 819 2,362 1,637 1,540 1,139 19....................... 5,528 3,499 1,271 635 123 660 1,829 1,551 1,488 1,466 26....................... 4,646 2,794 1,256 479 117 511 1,593 1,187 1,355 1,165 Mar. 5....................... 4,090 2,606 1,116 290 77 608 1,145 1,112 1,225 885 12....................... 4,721 3,355 812 463 92 749 1,261 1,360 1,351 932 19....................... 4,271 2,443 1,127 636 65 622 1,025 1,204 1,419 845 26....................... 4,861 2,835 1,085 461 480 686 1,472 1,133 1,570 1,130 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period sou A r l c l es Y N C o e it v r y k r w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1974—Feb................. 4,081 2,707 537 647 190 1,435 1974—Feb............. 4,837 1,545 1,501 533 1,257 Mar................ 2,587 2,149 50 287 102 1,045 3,817 1,196 952 485 1,185 Apr................. 1,536 1,577 -121 62 17 719 2,449 600 728 287 833 495 421 -33 66 41 791 May........... 1,637 26 486 213 913 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 4,138 988 1,248 548 1,354 Sept................ 3,060 2,317 334 340 69 1,216 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 Nov................ 4,513 2,999 728 618 169 1,531 5,626 1,466 1,245 561 2,355 Dec................. 4,831 3,100 975 559 197 1,803 6,904 2,061 1,619 691 2,534 1975—Jan................. 4,656 2,689 1,254 600 113 1,578 1975—Jan............. 6,185 1,455 1,277 864 2,590 Feb................. 5,586 3,656 1,180 536 213 1,469 Feb............ 6,295 1,672 1 ,077 714 2,832 Week ending— Week ending— 1975—Jan. 1......... 4,741 2,258 1,776 535 171 2,056 1975—Jan. 1. .. 6,436 1,424 1,344 565 3,103 8 5,341 2.501 2,051 641 149 1,831 8. .. 6,649 1,495 1,476 720 2,958 15......... 5,440 3,485 1,243 616 95 1,550 15... 7,271 1,801 1,802 1,139 2,529 22 3,666 2,105 849 603 109 1,426 22... 5,625 1,394 961 792 2,478 29......... 4,125 2,673 907 480 65 1,504 29... 5,360 1,197 963 849 2,351 Feb. 5......... 5,104 3,106 1,044 673 281 1,497 Feb. 5... 6,784 1,826 1,147 709 3,102 12......... 5,590 3,902 922 539 227 1,411 12... 7,097 1,968 1,741 954 2,433 19 , 5,482 3,958 775 553 195 1,574 19... 7,148 2,018 1,885 828 2,417 26 6,061 3,619 1,775 501 167 1,617 26... 6,506 1,689 1,499 786 2,532 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ FEDERALLY SPONSORED CREDIT AGENC A IG ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, FEBRUARY ; Cou­ Amount Cou­ Amount nour pon (millions Agency, and date of issue pon (millions Agency, and date of issue illior rate of dollars) and maturity rate of dollars) and maturity iollai Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 7.15 700 Debentures: 9/3/74 - 3/3/75............... 576 8.05 265 11/10/70 - 3/10/75......... 7.55 300 10/1/74 -4/1/75.............. 463 6.80 300 10/12/71 - 3/10/75......... 6.35 600 11/4/74 - 5/1/75.............. 683 7.95 300 4/1/70 - 4/1/75 ................. 8.00 200 12/2/74 -6/2/75 .............. 529 7.88 500 4/12/71 - 6/10/75............. 5.25 500 1/2/75 - 7/1/75 ................ 467 7.15 400 10/13/70 - 9/10/75......... 7.50 350 2/3/75 - 8/4/75 ................ 474 6.50 350 3/12/73 - 9/10/75............. 6.80 650 10/1/73 -4/4/77.............. 200 7.05 600 3/10/72 - 12/10/75......... 5.70 500 12/2/74 - 10/1/79............ 201 9.10 700 9/10/73 - 12/10/75........... 8.25 300 8.70 400 3/1 1/71 - 3/10/76............. 5.65 500 7.38 300 6/12/73 - 3/10/76............. 7.13 400 Federal intermediate 8.75 300 6/10/71 - 6/10/76............. 6.70 250 credit banks 9.20 600 2/10/72 - 6/10/76............. 5.85 450 Bonds: 7.20 600 9/10/74 - 6/10/76............. 10.00 700 6/3/74 - 3/3/75................ 796 7.45 300 11/10/71 - 9/10/76........... 6.13 300 7/1/74-4/1/75................ 811 7.80 500 6/12/72 -9/10/76............. 5.85 500 8/1/74- 5/1/75................ 766 9.55 700 12/10/74 - 9/10/76.......... 7.50 200 9/3/74 - 6/2/75................ 714 8.60 600 7/12/71 - 12/10/76........... 7.45 300 10/1/74-7/1/75.............. 769 9.55 500 12/11/72 - 12/10/76......... 6.25 500 1/3/72 - 7/1/75................ 302 7.20 500 6/10/74- 12/10/76........... 8.45 600 11/4/74-8/4/75.............. 713 8.05 500 2/13/62 - 2/10/77........... 4.50 198 12/2/74 - 9/2/75.............. 768 8.70 500 9/11/72 - 3/10/77............. 6.30 500 1/2/75 - 10/1/75 .............. 458 6.95 200 3/11/74 - 3/10/77....... 7.05 400 2/3/75 - 11/3/75.............. 754 7.15 300 12/10/70 - 6/10/77......... 6.38 250 3/1/73 - 1/5/76................ 261 8.80 600 5/10/71 - 6/10/77............. 6.50 150 7/2/73 - 1/3/77............... 236 6.75 300 12/10/73 - 6/10/77........... 7.20 500 7/1/74 -4/4/77................ 321 7.45 300 9/10/71 -9/12/77............. 6.88 300 1/2/74 - 1/3/78................ 406 9.15 700 9/10/73 -9/12/77............. 7.85 400 1/2/75 - 1/2/79................ 410 9.38 400 7/10/73 - 12/12/77........... 7.25 500 7.60 500 10/1/73 - 12/12/77........... 7.55 500 9.10 500 6/10/74-3/10/78............. 8.45 650 Federal land banks 8.65 600 6/12/73 - 6/12/78............. 7.15 600 Bonds: 9.45 600 3/11/74 - 9/11/78............. 7.15 550 4/20/65 - 4/21/75.......... 200 8.65 500 10/12/71 - 12/11/78___ 6.75 300 7/20/73 -4/21/75............ 7.65 300 8.75 400 7/10/74- 12/11/78.......... 8.95 450 2/15/72 - 7/21/75............ 5.70 425 9.50 500 12/10/73 - 3/12/79........... 7.25 500 4/22/74 - 7/21/75............ 8.30 300 8.15 500 9/10/73 - 6/11/79............. 7.85 300 7/20/71 - 10/20/75.......... 7.20 300 7.50 500 9/10/74 - 6/11/79............. 9.80 600 10/23/73 - 10/20/75........ 7.40 362 7.75 350 6/12/72 -9/10/79............. 6.40 300 4/20/72 - 1/20/76............ 6% 300 7.05 300 12/10/74 -9/10/79........... 7.80 700 7/22/74 - 1/20/76............ 9.20 650 7.80 200 12/10/71 - 12/10/79___ 6.55 350 2/21/66 - 2/24/76.......... 5.00 123 6.60 200 2/10/72 - 3/10/80............. 6.88 250 1/22/73 -4/20/76............ 6% 373 8.65 400 6/10/74-6/10/80............. 8.50 600 4/22/74-4/20/76............ 8% 400 7.30 183 2/16/73 - 7/31/80............. 5.19 1 7/20/66 - 7/20/76.......... 5^ 150 7.38 400 2/16/73 - 7/31/80............. 3.18 9 1/21/74 - 7/20/76............ 7.05 360 8.75 300 10/1/73 -9/10/80............. 7.50 400 4/23/73 - 10/20/76.......... 7.15 450 7.38 400 1/16/73 - 10/30/80........... 4.46 5 4/22/74-4/20/77............ 8 K 565 12/11/72 - 12/10/80......... 6.60 300 7/20/73 - 7/20/77............ 7 Vi 550 6/29/72 - 1 /29/81............. 6.15 156 10/20/71 - 10/20/77........ 6.35 300 3/12/73 - 3/10/81............. 7.05 350 10/21/74- 1/23/78.......... 8.70 546 6 7 . . 1 0 5 5 4 3 0 5 0 0 4 3 3 / / / 1 2 2 8 1 1 / / / 7 7 7 3 3 3 - - - 4 5 5 /1 / / 1 1 0 / / / 8 8 8 1 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 5 . . . 5 5 7 9 0 7 2 1 6 8 2 2 1 5 / / / 2 2 2 0 0 /6 / /6 7 6 5 3 - - - 4 4 2 / / / 2 2 2 0 0 0 / / / 7 7 7 8 8 3 . . . . - . . . 7 . . . . . 8 . . . . . . . . . . . . . . . . 4 7 5 1 . H / 6 g 0 7 1 1 1 4 5 3 8 0 8.60 140 1/21/71 - 6/10/81........... 7.25 250 7/20/72 - 7/20/78.......... 6.40 269 7.75 150 9/10/71 -9/10/81............. 7.25 250 7/22/74 - 7/20/78............ 9.15 350 7.15 150 9/10/74-9/10/81............. 9.70 300 10/23/73 - 10/19/78........ 7.35 550 8.20 300 7 3 / / 1 1 0 1 / / 7 7 4 4 - - 3 1 / 2 1 / 0 1 / 0 8 /8 2 1 ... . . . . . . . . . . . . . . . . . . . . . 7 8. . 8 3 8 0 2 3 5 0 0 0 2 1 / / 2 2 0 1 /6 /7 7 4 - - 1 1 / /2 2 2 2 / / 7 7 9 9 . . . . . . . . . . . . . . . . . . . . . . . . 7 5 . . 1 0 0 0 2 3 8 0 5 0 6/28/72 -5/1/82............... 5.84 58 9/15/72 4/23/79............ 6.85 235 2/10/71 - 6/10/82............. 6.65 250 2/20/74 - 7/23/79............ 7.15 389 9/11/72 - 9/10/82............. 6.80 200 10/23/72 - 10/23/79........ 6.80 400 12/10/73 - 12/10/82......... 7.35 300 1/22/73 - 1/21/80............ 6.70 300 3,033 3/11/71 -6/10/83............. 6.75 200 7/20/73 - 7/21/80............ 71/z 250 6/12/73 -6/10/83............. 7.30 300 10/21/74- 10/20/80........ 8.70 400 8.00 200 11/10/71 - 9/12/83........... 6.75 250 2/23/71 -4/20/81............ 6.70 224 4.38 248 4/12/71 -6/11/84............. 6.25 200 7/22/74 - 7/20/81............ 9.10 265 7.40 250 12/10/74 -9/10/84........... 7.95 300 1 /20/75 - 1 /20/82............ 7.80 400 12/10/71 - 12/10/84___ 6.90 250 4/20/72-4/20/82............ 6.90 200 3/10/72 - 3/10/92........... 7.00 200 4/23/73 - 10/20/82 ....... 7.30 239 8.38 250 6/12/72-6/10/92............. 7.05 200 10/23/73 - 10/20/83........ 7.30 300 3.58 53 12/11/72 - 12/10/97-82. . 7.10 200 5.48 5 5.85 71 5.92 35 5.50 10 5.49 21 5.74 81 8.63 200 guaranteed by the U.S. Govt.; see also note to table at top of p. A-38. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 FEDERALLY SPONSORED CREDIT AGENCIES □ APRIL 1975 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad­ Cash Mem­ Deben­ Loans Loans vances Invest­ and Bonds ber Capital Mort­ tures to and Mort­ to ments de­ and de­ stock gage and cooper­ Bonds dis­ Bonds gage Bonds mem­ posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 1970............. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971............. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972............. 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973............. 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—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 8,381 12,941 11,782 Sept... 20,772 2,681 135 20,647 2,160 2,543 28,641 27,312 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 Nov.. 21,502 2,568 106 21,474 2,182 2,603 29,407 28,024 3,573 3,295 8,700 8,441 13,643 12,427 Dec... 21,804 3,094 144 21,878 2,484 2,624 29,709 28,201 3,575 3,561 8,848 8,400 13,643 12,427 1975 —Jan.. . 20,728 4,467 113 21,778 2,612 2,699 29,797 28,030 3,910 3,653 8,888 8,419 14,086 13,020 Feb... 19,460 4,838 99 20,822 2,819 2,698 29,846 27,730 3,821 3,592 8,484 14,326 13,021 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 G o e b a n l l e i­ r­ R n e u v e e­ HAAl G l U o o a . v S n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l 4 ­ H in o g u s s­ V a a e n i t s d e * r­ O p p o t u s h r e e ­ s r gations auth. 197 1 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,652 13,305 9,332 959 57 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 197 3 23,970 12,257 10,632 1,022 58 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 197 4 23,705 13,204 9,961 461 79 4,659 8,499 10,470 20,210 4,709 767 5,513 1,045 8,176 1974—Feb.. 2,007 1,209 794 4 473 564 967 1,939 460 53 612 39 775 Mar. 2,029 1,181 617 4 344 793 887 1,906 366 258 363 241 678 Apr.. 2,406 1,708 689 9 360 862 1,177 2,361 516 9 595 178 1,063 May. 2,313 1,101 1,203 9 451 1,097 756 2,237 442 18 711 8 1,058 June. 2,171 1,075 856 234 6 580 721 864 2,079 220 62 664 334 799 July. 1,466 859 600 7 540 158 761 1,456 314 58 154 930 Aug. 1,109 576 529 4 141 400 565 1,067 228 85 257 1*5 482 Sept. 1,705 869 832 4 448 641 611 1,669 251 11 380 21 1,006 Oct.. 2,865 1,707 1,153 5 328 974 1,558 2,738 343 110 236 110 1,939 Nov. 2,487 1,110 1,374 3 689 1,005 789 2,403 698 4 866 9 826 Dec.. 1,500 761 717 22 222 558 700 1,475 297 64 424 53 637 1975—Jan.r 2,179 1,325 848 6 372 624 1,184 2,158 688 49 567 141 713 Feb.. 2,195 1,681 509 5 877 560 754 2,164 414 204 381 103 1,062 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

APRIL 1975 □ SECURITY ISSUES A 39 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o .S vt . . an S d t a lo te cal Others Total Govt.2 agency3 (U.S.)4 Total Publicly Privately Preferred Common offered placed 1971..................... 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1972..................... 96,522 17,080 12,825 23,070 1,589 41,957 28,896 19,434 9,462 3,367 9,694 1973..................... 100,417 19,057 23,883 22,700 1,385 33,391 22,268 13,649 8,620 3,372 7,750 1974..................... 37,785 31,458 25,337 6,121 2,248 4,079 1973—Dec.......... 6,635 148 1,032 1,966 251 3,238 2,469 1,552 917 196 573 1974 Jan 6r 3,328 2,898 2,115 783 152 278 Feb.r... 2,687 2,101 1,683 418 268 318 M ar.r.. 3,217 2,457 2,020 437 398 362 Apr.r....... 3,066 2,265 1,594 671 355 446 May r. .. 3,164 2,957 2,350 607 65 142 June r....... 2,981 2,455 1,939 516 113 413 July r........ 3,260 2,706 2,086 620 228 327 Aug.r.. .. 2,668 2,341 2,042 299 107 218 Sept.r. ... 1,629 1,215 897 318 216 289 Oct.r........ 4,642 3,789 3,423 366 196 657 Nov.......... 3,734 3,319 3,016 303 88 327 Dec.......... 3,409 2,955 2,172 783 152 302 Gross proceeds., major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1971.............................................. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1972.............................................. 4,821 1,809 2,645 2,882 2,862 185 6,392 4,965 3,692 1,125 8,485 2,095 1973.............................................. 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1974.............................................. 9,832 546 1,863 968 983 22 8,854 3,964 3,707 217 6,228 617 1973—Dec.................................... 485 18 145 285 226 6 569 319 350 27 693 115 1974__Jan. 6................................. 867 29 136 124 *•78 1,192 249 142 4 485 27 Feb..................................... 354 36 55 143 r2 1 536 293 372 25 783 87 Mar.................................... 479 161 52 71 76 850 449 310 21 691 58 Apr.................................... 1,193 9 238 56 6 446 685 289 5 95 47 May................................... 847 15 332 71 44 837 75 660 3 239 44 June................................... r434 44 311 139 5 15 859 288 355 1 491 39 July.................................... 1,051 43 257 93 62 1 318 300 242 53 m i 65 Aug.................................... 601 4 38 62 14 862 r216 364 462 44 Sept.................................... 186 2 '46 47 50 5 384 296 331 18 218 48 Oct.r.................................. 739 3 102 29 306 1,414 695 435 36 791 90 Nov.r................................. 1,682 2 124 110 336 739 224 62 26 379 54 Dec.................................... 1,399 198 172 23 4 417 194 145 25 817 14 1 Gross proceeds are derived by multiplying principal amounts or 6 Beginning Jan. 1974 noncorporate figures are no longer published by number of units by offering price. the SEC. 2 Includes guaranteed issues. 3 Issues not guaranteed. Note.—Securities and Exchange Commission estimates of new issues 4 See note to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ­ izations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 SECURITY ISSUES □ APRIL 1975 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1971....................... 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1972....................... 42,306 10,224 32,082 27,065 8,003 19,062 15,242 2,222 13,018 1973....................... 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 1974....................... 39,334 9,935 29,399 31,554 6,255 25,098 7,980 3,678 4,302 1973—IV............... 10,711 4,378 6,334 7,013 3,786 3,227 3,698 591 3,107 1974—1................. 8,973 2,031 6,942 6,810 1,442 5,367 2,163 588 1,575 11................ 9,637 2,048 7,589 7,847 1,584 6,263 1,790 465 1,326 Ill............... 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,759 82 IV............... 12,272 2,871 9,401 10,086 2,004 8,082 2,186 866 1,319 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and and and Stocks notes notes notes notes notes notes 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 1,181 197 4 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1973—IV, -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 Ill 1,479 -421 189 -664 49 — 6 1,358 862 1,116 222 1,194 88 IV. 3,098 126 240 -47 342 9 2,079 1,107 628 107 1,695 17 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 preceding 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 Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963.............. 2,460 1,504 952 25,214 1,341 23,873 1974—Feb... 215 303 -88 45,958 4,447 41,511 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Mar.., 297 346 -49 44,423 4,406 40,017 1965.............. 4,359 1,962 2,395 35,220 1,803 33,417 Apr... 262 327 -65 42,679 4,426 38,253 May.. 323 320 3 41,015 4,389 36,626 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 June.. 337 276 61 40,040 4,461 35,579 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 July. . 442 352 90 37,669 4,609 33,060 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Aug.., 446 339 127 35,106 4,953 30,153 Sept... 499 292 207 31,985 5,078 26,907 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Oct.. . 816 311 505 37,115 5,652 31,463 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 Nov... 619 335 284 36,366 5,804 30,562 1971.............. 5,145 4,751 r394*■55,045 r3,038 r52,007 Dec... 736 411 325 35,777 5,637 30,140 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 1975—Jan... 1,067 428 639 r3,7407 r3,889 r33,518 1973.............. 4,358 5,651 -1,261 46,518 4,002 42,516 Feb... 889 470 419 39,330 4,006 35,324 1974.............. 5,346 3,937 1,409 35,777 5,637 30,140 1 Includes contractual and regular single-purchase sales, voluntary and Note.—Investment Company Institute data based on reports of mem­ contractual accumulation plan sales, and reinvestment of investment in­ bers, which comprise substantially all open-end investment companies come dividends; excludes reinvestment of realized capital gains dividends. registered with the Securities and Exchange Commission. Data reflect 2 Market value at end of period less current liabilities. newly formed companies after their initial offering of securities. 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BUSINESS FINANCE A 41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i e t s s d ­ co c a n a t l i s l p o o u i n w t m a ­ l p ­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s ­ d co c a t n a l i s l o p o u i n w t m al ­ p ­ ances 1 ances 1 1968.............. 87.6 39.9 47.8 23.6 24.2 46.8 1973—1___ 120.4 48.9 71.5 28.7 42.8 69.2 1969.............. 84.9 40.1 44.8 24.3 20.5 51.9 II.... 124.9 50.9 74.0 29.1 44.9 70.8 1970.............. 74.0 34.8 39.3 24.7 14.6 56.0 III... 122.7 49.9 72.9 29.8 43.1 71.6 1971.............. 83.6 37.5 46.1 25.0 21.1 60.4 IV... 122.7 49.5 73.2 30.7 42.5 73.1 1972.............. 99.2 41.5 57.7 27.3 30.3 66.3 1973.............. 122.7 49.8 72.9 29.6 43.3 71.2 1974—1___ 135.4 52.2 83.2 31.6 51.6 74.1 1974r............. 141 .4 56.0 85.4 32.7 52.8 76.7 II. . . 139.0 55.9 83.1 32.5 50.5 75.7 III... 157.0 62.7 94.3 33.2 61.1 77.6 IV*.. 134.1 53.0 81 .1 33.3 47.8 79.3 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 1970.............................. 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971.............................. 204.9 518.8 55.7 10.7 3.5 208.8 200.3 39.7 313.9 4.9 207.3 12.2 89.5 1972—111..................... 219.2 547.5 57.7 7.8 2.9 224.1 212.2 42.8 328.3 4.7 212.1 12.7 98.8 IV..................... 224.3 563.1 60.5 9.9 3.4 230.5 215.1 43.6 338.8 4.0 221.6 14.1 99.1 1973—1......................... 231,8 579.2 61.2 10.8 3.2 235.7 222.8 45.5 347.4 4.1 222.8 15.7 104.7 II....................... 237.7 596.8 62.3 9.6 2.9 245.6 230.3 46.0 359.1 4.5 232.5 13.9 108.1 Ill..................... 241.9 613.6 62.2 9.5 3.0 254.2 238.2 46.6 371.7 4.4 240.8 15.3 111.2 IV...................... 245.3 631.4 65.2 10.7 3.5 255.8 247.0 49.3 386.1 4.3 252.0 16.6 113.3 1974—1......................... 253.2 653.9 62.8 11.7 3.2 265.6 258.9 51.6 400.7 4.5 256.7 18.7 120.7 II....................... 257.4 673.3 62.2 10.4 3.4 278.7 269.7 48.8 415.8 4.7 268.4 17.4 125.3 Ill..................... 263.6 696.0 63.9 10.7 3.5 284.1 282.7 51.1 432.4 5.1 276.6 20.5 130.2 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable du N r o ab n l ­ e Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other i A (S . . R A .) . 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972....................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973....................... 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 1974r..................... 112.40 22.62 23.39 3.18 2.54 2.00 2.12 17.63 2.92 13.96 22.05 1972—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 IV............... 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—12................ 25.33 4.87 5.60 .87 .66 .46 .53 3.81 .56 7.!98 113.22 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 42 REAL ESTATE CREDIT □ APRIL 1975 MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER (In millions of dollars) End of year End of quarter Type of holder, and type of property 1974 1970 1971 1972 IV nr IV r ALL HOLDERS. 451,726 499,758 564,825 634,955 645,948 664,337 678,037 687,484 1- to 4-family... 280,175 307,200 345,384 386,241 391,770 402,165 409,725 414,344 Multifamily1... 58,023 67,367 76,496 85,401 86,591 88,269 90,183 91,893 Commercial.... 82,292 92,333 107,508 123,965 127,384 132,122 134,967 136,977 Farm................. 31,236 32,858 35,437 39,348 40,203 41 ,781 43,162 44,270 PRIVATE FINANCIAL INSTITUTIONS.. 355,929 394,239 450,000 505,401 513,946 528,212 536,868 541,497 1- to 4-family................................................ 231,317 253,540 288,053 322,048 326,863 335,442 340,398 342,757 Multifamily1................................................ 45,796 52,498 59,204 64,730 65,386 66,594 67,757 68,371 Commercial.................................................. 68,697 78,345 92,222 107,128 110,047 114,185 116,430 117,960 Farm............................................................. 10,119 9,856 10,521 11,495 11,650 11,991 12,283 12,409 Commercial banks2. 73,275 82,515 99,314 119,068 121,882 127,320 129,943 131,043 1- to 4-family___ 42,329 48,020 57,004 67,998 69,374 72,253 73,539 74,162 Multifamily1. 3,311 3,984 5,778 6,932 7,046 7,313 7,415 7,478 Commercial........ 23,284 26,306 31,751 38,696 39,855 41,926 43,011 43,375 Farm................... 4,351 4,205 4,781 5,442 5,607 5,828 5,978 6,028 Mutual savings banks. 57,948 61,978 67,556 73,231 73,957 74,264 74,792 74,890 1- to 4-family......... 37,342 38,641 41,650 44,247 44,462 44,426 44,593 44,649 Multifamily1.......... 12,594 14,386 15,490 16,843 17,011 17,081 17,202 17,225 Commercial............ 7,893 8,901 10,354 12,084 12,425 12,698 12,938 12,956 Farm....................... 119 50 62 57 59 59 59 60 Savings and loan associations. 150,331 174,250 206,182 231,733 236,136 243,400 247,624 249,306 1- to 4-family....................... 124,970 142,275 167,049 187,750 191,223 197,008 200,352 201,564 Multifamily1....................... 13,830 17,355 20,783 22,524 22,763 23,342 23,574 23,684 Commercial......................... 11,531 14,620 18.350 21,459 22,150 23,050 23,698 24,058 Life insurance companies. 74,375 75,496 76,948 81,369 81,971 83,228 84,509 86,258 1- to 4-family............... 26,676 24,604 22.350 22,053 21,804 21,755 21,914 22,382 Multifamily1................ 16,061 16,773 17,153 18,431 18,566 18,858 19,566 19,984 Commercial................. 25,989 28,518 31,767 34,889 35,617 36,511 36,783 37,571 Farm............................ 5,649 5,601 5,678 5,996 5,984 6,104 6,246 6,321 FEDERAL AND RELATED AGENCIES.. 32.992 39,357 45,790 55,664 58,262 62,585 67,829 72,267 1- to 4-family................................................ 21.993 26,453 30,147 35,454 37,168 39,784 43,1 45,748 Multifamily1................................................ 3,359 4,555 6,086 8,489 8,923 9,643 10,644 11,790 Commercial.................................................. 16 11 Farm............................................................. 7,624 8,338 9,557 11,721 13,158 13,997 14,729 Government National Mortgage Association 5,222 5,323 5,113 4,029 3,604 3,618 4,052 1- to 4-family........................................ 2,902 2,770 2,490 1 ,330 1,189 1 ,194 1 ,337 1,600 Multifamily1........................................ 2,304 2,542 2,623 2,699 2,415 2,424 2,715 3,248 Commercial.......................................... 16 11 Farmers Home Administration. 767 819 837 1,200 1,300 1,400 1,500 1,600 1- to 4-family........................ 330 398 387 550 596 642 688 734 Farm...................................... 437 421 450 650 704 758 812 866 Federal Housing and Veterans Administra­ tions ..................................................... 3,505 3,389 3,338 3,476 3,514 3,619 3,765 3,900 1- to 4-family.......................................... 2,771 2,517 2,199 2,013 1 ,964 1 ,980 2,037 2,083 Multifamily1........................................... 734 872 1,139 1 ,463 1 ,500 1 ,639 1 ,728 1 ,817 Federal National Mortgage Association..., 15,502 17,791 19,791 24,175 24,875 26,559 28,641 29,578 1- to 4-family........................................... 15,181 16,681 17,697 20,370 20,516 21,691 23,258 23,778 Multifamily1............................................ 321 1,110 2,094 3,805 4,359 4,868 5,383 5,800 Federal land banks (farm only)................. 7,187 7,917 9,107 11,467 12,400 13,185 13,863 Federal Home Loan Mortgage Corporation. 357 964 1,789 2,604 2,627 3,191 3,713 4,586 1- to 4-family............................................ 357 934 1,754 2,446 2,472 2,951 3,414 4,217 Multifamily1............................................ 30 35 158 165 240 299 369 GNMA Pools.... 452 3,154 5,815 9,109 10,865 11,798 12,9^3 13,892 1- to 4-family. 452 3,153 5,620 8,745 10,431 11,326 12,454 13,336 Multifamily1.. 1 195 364 434 472 519 556 INDIVIDUALS AND OTHERS3. 62,805 66,162 69,035 73,890 73,740 73,540 73,340 73,720 1- to 4-family................................ 26,865 27,207 27,184 28,739 27,739 26,939 26,139 25,839 Multifamily1................................. 8,868 10,314 11,206 12,182 12,282 12,032 11,782 11,732 Commercial................................... 13,579 13,977 15,286 16,837 17,337 17,937 18,537 19,017 Farm.............................................. 13,493 14,664 15,359 16,132 16,382 16,632 16,882 17,132 1 Structure of 5 or more units. Note.—Based on data from various institutional and Govt, sources, 2 Includes loans held by nondeposit trust companies but not bank trust with some quarters estimated in part by Federal Reserve in conjunction departments. with the Federal Home Loan Bank Board and the Dept, of Commerce. 3 Includes some U.S. agencies for which amounts are small or separate Separation of nonfarm mortgage debt by type of property, where not data are not readily available. 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

APRIL 1975 □ REAL ESTATE CREDIT A 43 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION- SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage End of holdings transactions commitments holdings transactions commitments period (during period) (during period) FHA- VA- Pur­ Made Out­ FHA- Con­ Pur­ Made Out­ Total 1 m- guar- chases Sales during stand­ Total VA ven­ chases Sales during stand­ sured anteed period ing tional period ing 1971 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 182 1972 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,298 408 1,606 198 1973 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 186 1974 29,578 19,189 8,310 6,953 5 10,765 7,960 4.586 1 ,904 2,682 2,191 52 4,553 2.390 1974--Feb... 24,529 17,050 6,336 242 489 6,768 2,625 1,730 895 21 6 49 185 Mar... 24,875 17,315 6,340 462 1 1,646 7,913 2,638 1,724 914 29 2 595 748 Apr... 25,263 17,450 6,503 526 1 2,154 9,292 2,722 1,756 967 101 400 1,037 May.. 25,917 17,725 6,794 821 1,145 9,475 2,986 1,827 1,159 281 1,486 2,221 June.. 26,559 17,966 7,079 770 537 9,019 3,191 1,877 1,314 222 628 2,598 July. . 27,304 18.250 7,384 886 1,175 9,044 3,309 1,883 1,426 129 1,127 3,583 Aug... 28,022 18,526 7,704 868 2 1,202 9,115 3,451 1,886 1,565 155 81 3,500 Sept.. 28,641 18,758 7,994 760 997 9,043 3,713 1,896 1,817 273 69 3,278 Oct... 29,139 18,966 8,206 612 878 8,987 4,107 1 ,910 2,197 410 7 30 2,871 Nov... 29,407 19,083 8,291 379 201 8,532 4,352 1,908 2,445 270 12 28 2,621 Dec... 29,578 19,189 8,310 278 231 7,960 4.586 1 ,904 2,682 266 16 34 2.390 1975--Jan... 29,670 19,231 8,318 208 146 7,285 4,744 1,900 2,845 199 26 26 2,190 Feb... 29,718 19.256 8,313 169 137 6,672 1 Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms1 Yields (per cent) in insured primary market loans—Yield Period in private Contract Fees and Loan/price Purchase Loan secondary rate (per charges Maturity ratio price (thous. amount market5 cent) (per cent)2 (years) (per cent) of dollars) (thous. of FHLBB HUD dollars) series 3 series 4 1971........................... 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972........................... 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.52 1973........................... 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 1974........................... 8.71 1 .30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 1974—Feb................. 8.40 1.33 25.9 76.5 37.8 28.5 8.62 8.55 8.54 Mar................ 8,43 1.35 26.4 77.3 39.1 29.5 8.64 8.60 8.66 Apr................. 8.47 1.21 26.1 77.3 38.5 29.2 8.67 8.90 9.17 May............... 8.55 1.20 25.8 76.8 37.9 28.8 8.74 9.15 9.46 June............... 8.65 1.25 26.3 76.9 39.7 30.1 8.85 9.25 9.46 July................ 8.75 1.28 26.1 74.4 40.5 29.6 8.96 9.40 9.85 Aug................ 8.87 1.32 26.4 75.3 40.2 29.5 9.09 9.60 10.30 Sept................ 8.97 1.30 26.1 74.8 42.4 31.1 9.19 9.80 10.38 Oct................. 8.95 1.37 26.7 74.7 42.3 30.7 9.17 9.70 10.13 Nov............ 9 04 1.40 26 2 73.6 41.3 30 2 9 27 9.55 Dec................ 9.13 1 .44 27.5 75.5 42.4 31 .3 9.37 9.45 9.51 1975—Jan................. 9.09 1.51 26.7 73.8 43.2 31.6 9.33 9.15 8.99 Feb.p.............. 8.88 1.46 26.8 76.7 44.2 32.9 9.11 9.05 8.84 1 Weighted averages based on probability sample survey of character­ (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in­ end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed pre­ costs related solely to transfer of property ownership. payment at the end of 15 years. Any gaps in data are due to periods of 3 Effective rate, reflecting fees and charges as well as contract rates adjustment to changes in maximum permissible contract interest rates. NOTE TO TABLE AT BOTTOM OF PAGE A-44: 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 44 REAL ESTATE CREDIT □ APRIL 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 1975 Oct. 21 Nov. 4 Nov. 18 Dec. 2 Dec. 16 Dec. 30 Jan. 13 Jan. 27 Feb. 10 Feb. 24 Mar. 10 Mar. 24 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................. 34.5 47.8 25.7 52.5 49.6 35.7 25.3 41.4 24.6 36.2 99.2 460.5 Accepted............................... 26.0 24.7 17.6 23.3 43.3 31.8 21.2 28.6 18.1 23.8 60.1 321.4 Conventional loans Offered i................................ 14.1 20.4 20.6 24.0 20.1 17.2 17.9 11.1 14.8 20.0 34.4 60.7 Accepted............................... 12.2 12.1 6.8 12.0 18.5 10.1 14.9 10.6 9.1 9.1 21.1 35.8 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans........ 10.11 9.93 9.81 9.61 9.52 9.47 9.37 9.12 8.98 8.87 8.78 8.85 Conventional loans.................. 10.27 10.11 9.92 9.80 9.72 9.59 9.50 9.39 9.20 9.04 8.96 9.00 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding require­ paid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Dec. 31, June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Holder 1972 1973 1973 1973 1974 1974 1974 All holders................................................... 131.1 133.6 133.8 135.0 136.7 137.8 138.6 FHA......................................................... 86.4 86.4 85.6 85.0 85.0 84.9 84.1 VA............................................................ 44.7 47.2 48.2 50.0 51.7 52.9 54.5 Commercial banks...................................... 11.7 11.7 11.7 11.5 11.1 11.0 10.8 FHA......................................................... 8.5 8.5 8.4 8.2 7.8 7.6 7.4 VA............................................................ 3.2 3.2 3.3 3.3 3.3 3.4 3.4 Mutual savings banks................................. 28.6 28.7 28.6 28.4 28.2 27.9 27.7 FHA......................................................... 16.0 15.8 15.7 15.5 15.3 15.1 14.9 VA............................................................ 12.6 12.9 12.9 12.9 12.9 12.8 12.8 Savings and loan assns.............................. 28.9 V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 5 . . 5 4 } 29.8 } 30.1 1 29.7 J 29.8 } 29.7 29.8 Life insurance cos........................................ 14.7 14.0 13.7 13.6 13.3 13.1 12.9 FHA......................................................... 10.0 9.5 9.3 9.2 9.0 8.8 8.7 VA............................................................ 4.7 4.5 4.4 4.4 4.3 4.3 4.2 Others.......................................................... 47.2 49.4 50.0 52.1 54.3 56.1 57.4 FHA......................................................... 36.5 VA............................................................ 10.7 Note.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period o N f u l m oa b n e s r ( c m o ( a i d m l m o li m l o o la u i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t r n a e t c r t r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C (p a t p e io r it n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 197 0 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 197 1 1,664 3.982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 197 2 2,132 4.986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 197 3 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1973—Sept. 176 351.5 1,997 8.94 22/6 73.7 9.3 1.23 10.3 Oct.. 161 203.3 1,263 9.09 22/6 73.6 9.4 1.24 10.3 Nov. 95 313.5 3,300 9.17 22/2 74.3 9.7 1.25 10.4 Dec. 55 152.8 2,778 9.18 23/3 74.8 9.9 1.27 10.3 1974—Jan.. 61 91.5 1,501 9.07 20/11 73.7 9.7 1.24 10.4 Feb., 90 209.4 2,327 9.10 23/1 73.6 9.8 1.33 10.2 Mar. 117 238.8 2,041 8.99 21/11 74.2 9.6 1.31 10.1 Apr. 141 306.7 2,175 9.02 21/9 73.8 9.9 1.33 10.2 May 148 352.4 2,381 9.31 21/11 74.2 10.0 1.30 10.4 June 147 287.5 1,956 9.35 20/10 75.7 10.1 1.24 10.7 July. 121 234.6 1,939 9.60 20/0 74.1 10.1 1.26 10.8 Aug. 105 312.4 2,975 9.80 22/10 74.3 10.2 1.31 10.7 Sept. 95 241.6 2,543 10.04 20/11 74.4 10.3 1.29 11.1 See Note on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ CONSUMER CREDIT A 45 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Charge accounts Auto­ consumer improve­ Personal Single­ Service Total mobile goods ment loans Total payment credit paper paper loansi loans Retail Credit outlets cards2 1965.................... 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 1966.................... 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 1967.................... 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 1968.................... 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 1969.................... 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5,936 1,437 6,921 1970..................... 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 6,163 1,805 7,456 1971..................... 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 6,397 1,953 8,164 1972..................... 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 1973..................... 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1974.................... 190,121 156,124 51,689 52,009 8,162 44,264 33,997 12,979 8,012 2,122 10,884 1974—Feb........... 177,522 145,927 50,386 46,781 7,343 41,417 31,595 13,159 6,136 1,882 10,418 Mar.......... 177,572 145,768 50,310 46,536 7,430 41,492 31,804 13,188 6,097 1,842 10,677 Apr........... 179,495 147,047 50,606 47,017 7,573 41,851 32,448 13,315 6,556 1,878 10,699 May......... 181,680 148,852 51,076 47,588 7,786 42,402 32,828 13,331 6,948 1,999 10,550 June......... 183,425 150,615 51,641 48,099 7,930 42,945 32,810 13,311 7,002 2,104 10,393 July.......... 184,805 152,142 52,082 48,592 8,068 43,400 32,663 13,192 6,936 2,204 10,331 Aug.......... 187,369 154,472 52,772 49,322 8,214 44,164 32,897 13,202 6,983 2,282 10,430 Sept.......... 187,906 155,139 52,848 49,664 8,252 44,375 32,767 13,131 6,876 2,277 10,483 Oct........... 188,023 155,328 52,736 49,986 8,287 44,319 32,695 13,003 7,027 2,156 10,509 Nov.......... 188,084 155,166 52,325 50,401 8,260 44,180 32,918 12,950 7,174 2,144 10,650 Dec.......... 190,121 156,124 51,689 52,009 8,162 44,264 33,997 12,979 8,012 2,122 10,884 1975—Jan........... 187,080 153,952 50,947 51,142 8,048 43.815 33,128 12,675 7,162 2,153 11,138 Feb........... 185,381 152,712 50,884 50,136 7,966 43,726 32,669 12,560 6,468 2,074 11,567 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit 196 5 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 196 6 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 196 7 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 196 8 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 196 9 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 197 0 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 197 1 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 197 2 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 197 3 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 197 4 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—Feb.. 80,909 69,246 18,770 12,028 7,285 6,770 6,063 3,937 2,173 12,220 11,663 Mar. 80,918 69,232 18,775 11,985 7,333 6,667 6,082 3,958 2,169 12,263 11,686 Apr., 81,750 69,944 18,896 12,039 7,399 6,761 6,208 4,028 2,180 12,433 11,806 May 82,527 70,721 19,037 12,100 7,491 6,887 6,323 4,135 2,199 12,549 11,806 June, 83,417 71,615 19,220 12,169 7,564 7,076 6,420 4,224 2,230 12,712 11,802 July. 84,078 72,384 19,377 12,250 7,623 7,222 6,484 4,316 2,266 12,846 11,694 Aug. 84,982 73,302 19,511 12,344 7,681 7,491 6,541 4,409 2,312 13,013 11,680 Sept. 85,096 73,455 19,389 12,314 7,706 7,638 6,527 4,445 2,348 13,088 11,641 Oct.. 84,887 73,372 19,246 12,195 7,709 7,749 6,530 4,480 2,376 13,087 11,515 Nov. 84,360 72,896 18,981 12,031 7,700 7,846 6,469 4,490 2,362 13,017 11,464 Dec. 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1975—Jan.. 82,986 71,776 18,230 11,581 7,587 8,325 6,323 4,399 2,448 12,883 11,210 Feb. 82,229 71,151 18,104 11,497 7,522 8,149 6,272 4,359 2,447 12,801 11,078 See Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT □ APRIL 1975 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other c Dnsumer End of period Auto­ goodspaper Home Per­ Mis­ Auto­ Other Total mobile improve­ sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders i dealers outlets Mobile Other loans homes 1965....................... 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 1966....................... 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 1967....................... 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 1968....................... 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 1969....................... 27,846 9,412 5,'775 174 12,485 13,722 12,028 1,694 13,116 250 12,866 1970....................... 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 1971....................... 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 1972....................... 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 1973....................... 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1974....................... 38,925 12,435 3,570 4,751 993 17,176 25,216 22,116 3,100 19,473 286 19,187 1974—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 Nov............. 38,803 12,462 3,603 4,611 1,021 17,106 25,195 21,975 3,220 18,272 292 17,980 Dec............. 38,925 12,435 3,570 4,751 993 17,176 25,216 22,116 3,100 19,473 286 19,187 1975—Jan.............. 38,340 12,315 3,559 4,642 967 16,857 25,032 21.966 3,066 18,804 282 18,522 Feb............. 38,194 12,406 3,539 4,580 923 16,746 25,213 22,089 3,124 18,154 280 17,874 i Savings and loan associations and mutual savings banks. See also Note to table at top of preceding page. FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT (Per cent per annum) Commercial banks Finance companies Month New Mobile Other Personal Credit- Automobiles Other automo­ homes consumer loans card Mobile consumer Personal biles (84 mos.) goods (12 mos.) plans homes goods loans (36 mos.) (24 mos.) New Used 1973—Feb. 10.05 10.76 12.51 12.76 17.16 11.86 16.20 Mar. 10.04 10.67 12.48 12.71 17.19 11.85 16.32 12.54 18.92 20.79 Apr. 10.04 10.64 12.50 12.74 17.19 11.88 16.44 May 10.05 10.84 12.48 12.78 17.22 11.91 16.52 12.73 18.88 20.76 June 10.08 10.57 12.57 12.78 17.24 11.94 16.61 July. 10.10 10.84 12.51 12.75 17.21 12.02 16.75 12.77 18.93 20.55 Aug. 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept. 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 Oct.. 10.53 10.98 12.80 13.02 17.23 12.34 17.11 Nov. 10.49 11.19 12.75 12.94 17.23 12.40 17.21 13.12 18.77 20.65 Dec. 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan.. 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 Feb. 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar. 10.50 10.92 12.82 13.04 17.23 12.29 16.69 13.15 18.69 20.57 Apr. 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.07 18.90 20.57 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 19.24 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 17.15 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 Nov. 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 21.16 Dec. 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan.. 11.62 11.66 13.28 13.60 17.16 13.08 17.27 13.60 19.58 21.24 Feb. 11.51 12.14 13.20 13.45 17.24 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

APRIL 1975 □ CONSUMER CREDIT A 47 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 1967........................... 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 1968........................... 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 1969........................... 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 1970........................... 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 1971........................... 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 1972........................... 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 1973........................... 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1974........................... 166,478 42,756 71,077 4,650 47,995 69,554 41,809 24,510 30,605 1974—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 Nov................ 12,609 3,062 5,700 321 3,526 5,390 2,823 1,863 2,533 Dec................ 12,702 3,205 5,798 294 3,405 5,012 3,240 1,901 2,549 1975—Jan................. 12,859 3,348 5,430 289 3,792 5,368 3,068 2,048 2,375 Feb................. 13,465 3,856 5,561 302 3,746 5,649 3,195 2,104 2,517 Repayments 1967........................... 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 1968........................... 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 1969........................... 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 1970........................... 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20,742 1971........................... 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 1972........................... 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 1973........................... 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 1974........................... 157,791 42,197 66,598 3,840 45,156 66,539 40,127 21,861 29,264 1974—Feb................. 12,870 3,394 5,340 323 3,813 5,430 3,423 1,692 2,325 Mar................ 13,206 3,544 5,596 308 3,758 5,479 3,452 1,827 2,448 Apr................. 13,026 3,498 5,483 312 3,733 5,470 3,375 1,784 2,397 May............... 13,407 3,601 5,607 315 3,884 5,573 3,528 1,855 2,451 June............... 13,301 3,577 5,615 335 3,774 5,564 3,405 1,835 2,497 July................ 13,310 3,563 5,610 320 3,817 5,541 3,513 1,819 2,437 Aug................ 12,882 3,443 5,444 309 3,686 5,463 3,166 1,851 2,402 Sept................ 13,412 3,604 5,700 279 3,829 5,808 3,371 1,723 2,510 Oct................. 13,224 3,470 5,499 321 3,934 5,542 3,250 1 ,962 2,470 Nov................ 13,009 3,423 5,561 325 3,700 5,671 2,981 1 ,860 2,497 Dec................. 13,516 3,668 6,037 341 3,470 5,803 3,308 1,822 2,583 1975—Jan................. 13,260 3,534 5,549 336 3,841 5,669 3,331 1,827 2,433 Feb................. 13,228 3,605 5,632 350 3,641 5,747 3,134 1,824 2,523 Net change 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 1974........................... 8,687 559 4,479 810 2,839 3,015 1,682 2,649 1,341 1974—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 Nov................ -400 -361 139 -4 -174 -281 -158 3 36 Dec................. -814 -463 -239 -47 -65 -791 -68 79 -34 1975—Jan................. -401 -186 -119 -47 -49 -301 -263 221 -58 Feb................. 237 251 -71 -48 105 -98 61 280 -6 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 48 INDUSTRIAL PRODUCTION: S.A. □ APRIL 1975 MARKET GROUPINGS (1967 = 100) 1 p 9 ro 67 - 1974 1974 1975 por­ Grouping tion age Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.P Mar.* Total index................................... 100.0 124.8 124.7 124.9 125.7 125.8 125.5 125.2 125.6 124.8 121 .7 117.4 113.7 110.7 109.6 Products, total.................................. 62.21 123.1 122.6 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.7 115.6 113.2 112.2 Final products............................... 48.95 121.7 121.0 120.8 122.4 122.6 122.8 122.1 122.6 122.3 120.91 118.2 115.1 112.8 112.2 Consumer goods....................... 28.53 128.8 128.5 128.5 ! 129.7 130.2 130.0 129.8 128.8 128.2 126.3 123.4 120.6 1 18.0 118.7 Equipment................................ 20.42 111.8 110.1 110.1 112.2 112.0 113.0 111.4 113.8 114.0 113.2 110.7 107.4 105.3 103.3 Intermediate products................. 13.26 128.3 128.2 129.4 129.2 128.9 127.8 128.6 127.6 125.3 123.0' 120.5 117.5 114.5 112.3 Materials........................................... 37.79 127.4 128.8 128.7 129.1 128.8 128.0 128.5 129.3 128.1 122.1 114.8 110.5 106.5 104.9 Consumer goods Durable consumer goods.................. 7.86 128.1 128.5 130.9 132.8 133.5 131.6 131.8 129.1 126.5 119.7 110.1 104.2 100.2 103.1 Automotive products................... 2.84 110.4 108.0 113.8 116.1 117.3 113.5 114.9 111.6 114.7 102.1 87.5 80.9 78.5 87.5 Autos......................................... 1.87 94.9 86.3 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91 .0' 69.8 62.6 58.9 73.1 Auto parts and allied goods... .97 140.1 149.8 144.7 146.5 151.3 136.9 137.6 134.5 126.9 123.6 121 .5 116.1 116.1 115.0 Home goods...................................... 5.02 138.1 140.1 140.6 142.3 142.7 141.8 141.2 139.0 133.2 129.7 123.0 117.4 112.6 112.0 Appliances, TV, and radios........ 1.41 132.1 135.8 135.2 137.7 141.2 139.3 139.1 133.2 120.9 115.3 102.5 93.3 88.3 Appliances and A/C............. .92 149.0 150.0 148.6 152.6 155.3 151.7 156.2 150.2 139.5 131.9 119.8 106.1 102.1 TV and home audio.............. .49 100.3 Carpeting and furniture.............. 1.08 153.5 154.5 158.2 157.4 157.2 155.3 157.1 155.4 151.8 144.7 143.8 136.7 134.3 Misc. home goods........................ 2.53 135.0 136.3 136.0 138.3 137.4 137.3 135.8 135.3 132.2 131 .4 125.5 122.5 117.0 116.0 Nondurable consumer goods............. 20.67 129.1 128.7 127.6 128.5 129.0 129.4 129.1 128.7 128.9 128.8 128.4 126.9 124.8 124.7 Clothing......................................... 4.32 109.0 112.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 102.0 95.4 Consumer staples.......................... 16.34 134.4 133.1 133.2 134.2 134.3 134.9 135.1 134.8 135.4 135.6 135.5 135.2 133.1 132.7 Consumer foods and tobacco.. 8.37 125.4 125.7 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.3 125.7 124.9 124.7 Nonfood staples........................ 7.98 143.6 140.8 143.1 144.3 144.4 144.7 146.5 145.7 146.1 145.3 146.2 145.2 141 .8 141 .0 Consumer chemical products, 2.64 158.1 160.3 159.7 157.5 156.8 154.6 159.0 157.7 159.8 155.2 159.1 160.2 156.3 Consumer paper products..., 1.91 125.5 119.1 119.4 124.7 123.9 124.4 129.5 130.9 128.5 127.4 126.7 123.8 119.8 Consumer fuel and lighting., 3.43 143.0 138.2 143.7 145.1 146.0 148.4 146.2 144.6 145.4 147.9 147.3 145.8 143.0 Residential utilities............ 2.25 152.5 149.0 151.6 153.2 155.3 157.8 155.4 156.2 155.5 159.3 159.0 154.7 Equipment Business equipment............................. 12.74 129.5 127.6 127.9 130.2 130.2 131.3 128.8 132.3 132.0 131.0 127.1 121.9 119.5 116.7 Industrial equipment..................... 6.77 128.8 126.8 127.6 129.6 129.0 130.3 129.6 132.0 130.9 129.3 126.7 123.0 120.8 119.0 Building and mining equip........ 1.45 136.0 131.3 133.5 135.0 137.4 136.2 136.5 139.8 141.2 140.1 137.4 137.8 136.5 137.0 Manufacturing equipment........ 3.85 121.8 121.1 122.1 124.1 121.9 124.9 123.1 124.4 122.5 119.4 116.5 112.2 110.8 107.7 Power equipment....................... 1.47 139.9 137.3 136.6 138.4 139.0 138.4 139.6 144.2 142.8 144.5 142.6 136.5 131 .1 130.2 Commercial, transit, farm equip.. 5.97 130.2 128.7 128.2 130.9 131.5 132.5 127.6 132.8 133.2 132.9 127.6 120.8 117.9 114.1 Commercial equipment............. 3.30 141.2 140.8 140.4 141.5 142.7 143.5 134.0 143.3 144.1 143.1 139.3 133.3 129.6 125.1 Transit equipment..................... 2.00 109.4 109.4 106.7 110.2 110.4 111.4 109.3 111.8 111.2 109.8 102.9 92.5 92.5 87.7 Farm equipment........................ .67 138.3 126.1 131.2 140.2 140.6 141.4 150.5 144.1 145.4 151.9 143.7 143.8 136.3 Defense and space equipment............ 7.68 82.4 81.0 80.6 82.2 81.7 82.6 82.7 83.1 84.1 83.7 83.4 83.4 81.9 81.0 Military products........................... 5.15 81.2 80.5 79.9 81.2 79.7 81.4 81.5 82.3 82.5 81.8 81.3 81.0 79.8 79.2 Intermediate products Construction products....................... 5.93 129.6 129.6 130.8 130.8 129.6 128.2 128.0 127.4 123.5 121.3 118.3 116.9 112.7 110.5 Misc. intermediate products............. 7.34 127.3 127.5 128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 122.5 118.1 115.8 Materials Durable goods materials..................... 20.91 127.6 127.2 127.3 128.3 127.5 125.8 128.1 129.2 129.3 123.5 114.2 110.3 105.7 103.8 Consumer durable parts................ 4.75 112.1 110.6 112.5 114.7 114.1 117.2 117.5 117.2 115.2 104.1 91 .7 83.6 80.1 81 .2 Equipment parts............................. 5.41 123.8 121.6 120.1 122.5 122.1 120.6 125.8 125.0 124.0 122.2 118.3 116.8 110.5 107.9 Durable materials nec.................... 10.75 136.3 137.5 137.5 137.2 136.2 132.3 133.9 136.6 138.3 132.7 122.9 118.9 114.7 111.5 Nondurable goods materials............... 13.99 128.3 131.9 131.9 130.9 131.3 131.1 130.4 129.3 126.8 122.1 116.2 109.2 105.5 104.0 Textile, paper, and chem. mat.... 8.58 139.4 143.1 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 122.9 113.0 107.9 105.1 Nondurable materials n.e.c........... 5.41 110.6 114.7 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.7 103.2 101 .6 102.2 Fuel and power, industrial................ 2.89 122.6 122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.0 118.5 117.9 118.2 Supplementary groups Home goods and clothing................. 9.34 124.6 127.0 124.6 126.0 127.1 126.4 125.0 123.8 120.0 117.4 113.2 107.2 103.6 103.8 Containers.......................................... 1.82 139.3 151.4 147.0 141.5 141.6 142.1 140.4 136.7 131.5 127.6 120.3 125.1 122.1 Gross value of products in market structure (In billions of 1963 dollars) Products, total....................................... 286.3 443.9 445.4 449.5 449.7 448.1 446.9 447.1 445.7 439.0 426.7 417.9 409.0 406.6 Final products................................. 221.4 342.3 342.9 347.2 347.7 346.6 345.0 346.1 346.5 341.3 331.0 323.5 317.1 316.9 Consumer goods.......................... 156.3 232.7 233.8 235.9 236.6 235.0 235.1 233.1 233.7 228.9 222.3 217.9 213.2 215.5 Equipment.................................... 65.3 109.4 109.0 111.2 111.2 111.6 109.9 112.8 112.7 112.4 108.8 105.5 103.9 101.6 Intermediate products..................... 64.9 101.9 102.5 102.2 102.0 101.2 102.1 101.0 99.4 97.4 95.8 94.4 91.8 89.9 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INDUSTRIAL PRODUCTION: S.A. A 49 INDUSTRY GROUPINGS (1967 = 100) 1967 Grouping p p ti o r o o r n ­ ­ a 1 a v 9 g e 7 e r 4 ­ 1974 1975 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar. Manufacturing......... 88.55 124.4 124.6 124.8 125.7 125.6 125.2 125.2 725.5 124.6 120.9 116.1 112.3 109.0 107.8 Durable................ 52.33 120.8 120.4 120.7 122.1 122.1 121.6 121.6 122.1 121 .6 117.9 112.2 107.9 103.9 102.9 Nondurable.......... 36.22 129.7 130.9 130.4 130.9 130.8 130.8 130.4 130.5 128.9 125.4 121 .9 118.7 116 115.0 Mining and utilities. 11.45 127.0 127 127 128.0 128.1 128.9 127.4 128.7 128.5 125.9. 125.7 125.6 124.4 124.3 Mining............. 6.37 109.3 112.2 111.3 111.0 110.2 110.2 107.3 109.2 110.5 105.0 104.4 107.6 106. 107.0 Utilities................ 5.08 149.2 146.5 148.7 149.2 150.6 152.4 152.6 153.1 151 .2 152.3 152.6 148.0 146.6 146.2 Durable manufactures Primary and fabricated metals............ 12.55 127.8 128.2 127.5 128 .128.4 126.9 126.5 127.2 127.6 124.4 116.0 112.6 106.1 103.8 Primary metals................................. 6.61 124.5 125.3 124.0 124.6 124.7 123.2 121.9 123.0 126.0 121 .0 108.6 107.4 100.7 97.4 Iron and steel, subtotal................ 4.23 120.2 119.6 116.4 118.0 118.5 119.9 120.7 119.1 123.9 117.7 107.9 110.6 104.1 101 .6 Fabricated metal products.............. 5.94 131 .4 131.6 131.3 131 132.5 131.1 131.5 132.0 129.6 128.2 124.1 118.3 112.1 110.7 Machinery and allied goods............... 32.44 116.3 114. 115.5 117.5 117.7 117.3 117.8 118.8 118.4 114.9 109.6 105.1 101.6 101.5 Machinery....................................... 17.39 129.7 128.4 128.2 129.7 130.4 129.9 130.5 132.5 131 .1 128.9 124. 119.0 114. 112.4 Nonelectrica 1 mach inery............ 9.17 133.7 129. 130.7 131 131.7 131.1 136.4 137 137.4 135.1 132.5 126.1 122.1 119.7 Electrical machinery.................. 8.22 125.2 126. 125.3 127.4 129.0 128.4 123.7 126.4 124.0 121 .7 116.3 111.1 106.7 104.3 Transportation equipment............ 9.29 96.9 95.0 97.8 100.6 99.4 98.7 99.9 100.4 102.1 93.7 83.6 79.3 76.1 80.2 Motor vehicles and parts.......... 4.56 113.1 110.2 116.4 119.6 116.9 117.3 117 118.6 123.0 107.1 86.4 78.6 76.0 86.4 Aerospace and misc. trans. eq.. 4.73 81 .2 80.3 80.0 82.4 82.6 80.9 82.6 82.8 81.9 80.9 80.9 79.9 76 74.3 Instruments..................................... 2.07 143. 142. 143.8 146.1 147 146.7 146.7 144.9 142.0 142.3 139.5 138.9 134.2 132.9 Ordnance, private and Govt......... 3.69 86.2 84.9 84.3 86.1 86.4 87.2 87.1 87.5 87.2 86.6 86.6 85.5 85.6 85.3 Lumber, clay, and glass.................. 4.44 123.8 128.1 128.9 128.0 126.4 125.5 123.4 120.6 117.8 113.7 111.0 107.7 104 101.5 Lumber and products................ 1.65 120.1 126.1 126.8 126 125.6 121.6 121.5 116.6 109.3 105.2 101 .3 95.1 92.2 Clay, glass, and stone products.... 2.79 125.9 129 130.3 128.7 126.9 127.7 124.6 123.0 122.9 118.8 116.9 115.2 111 i 08! 8 Furniture and miscellaneous.... 2.90 136.2 136 136.8 138.9 138.5 139.7 140.1 138.8 136.7 129.0 128.4 119.9 118.4 117.1 Furniture and fixtures........... 1.38 127.0 126.8 128.8 129.7 131.1 131.6 130.5 129.4 125.5 120.5 120.4 111 109.5 Miscellaneous manufactures. 1.52 144.6 145.8 144.1 147.3 145.3 147.1 148.8 147.5 146.9 136.9 135.7 127.7 126.5 Nondurable manufactures Textiles, apparel, and leather. 6.90 108.5 112.4 109.3 109.8 108.5 108.1 107.4 106.5 105.1 101.9 96.3 92.4 89.5 89.2 Textile mill products.......... 2.69 123.0 125.0 123.4 124.0 125.1 125.3 124.3 121.9 119.1 112.8 102.9 96.0 93.0 Apparel products................ 3.33 105.0 110.0 105 105.0 102.1 102.7 102.5 102.5 102. 100.1 98.0 96.5 Leather and products......... 77.6 83.0 79.5 83.9 81.6 75.7 73.4 74.2 70.6 74.7 69.7 65.9 64.0 Paper and printing............. 7.92 121.0 122.5 121.2 121.3 122.3 122.4 121.0 122.7 120.8 115.7 112.3 109.2 105.5 Paper and products 3.18 133.9 140.2 135.4 135.1 136.7 136.1 132.2 135.3 133.9 124.3 116.1 113.6 107.0 Printing and publishing. 4.74 112.3 110.7 111.7 111.9 112.7 113.4 113.4 114.4 111.9 110.0 109. 106.2 104.5 103.4 Chemicals, petroleum, and rubber.... 11.92 151.7 151.3 153.5 153.0 153.7 153.9 154.4 154.7 152.4 146.5 141.6 135.8 133 131.4 Chemicals and products.................. 7.86 154.3 155.5 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.1 137.7 135.7 134.0 Petroleum products......................... 1.80 124.1 117.3 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 125.8 126.9 123.4 121 .2 Rubber and plastics products......... 2.26 164.6 164.2 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 148.9 136.1 135.6 Foods and tobacco. .. 9.48 124.7 125.3 124.3 126.5 125.3 124. 124. 124.3 123.7 123. 123.5 124.4 123.0 122.5 Foods..................... 8.81 126.1 126.5 125.9 127. 127.1 126.6 126.3 125.7 124.8 125.4 125.7 125.9 124.5 123.8 Tobacco products. .67 107.0 110.4 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103. 96.2 104.7 Mining Metal, stone, and earth minerals., 1.26 117.1 119.7 117.5 117.9 112.4 113.5 109.9 115.4 121.3 120.7 117.9 117.9 115.5 111.1 Metal mining............................ .51 129.0 132.9 127.4 128.1 121.1 120.3 110.0 130.5 141.4 136. 134.7 132.7 129.9 Stone and earth minerals........ .75 109.0 110.7 110.7 111.0 106.4 108.8 109.9 105.0 107.5 109.8 106.4 107.9 105.6 Coal, oil, and gas............ 5.11 107.3 110.2 109.8 109.2 109.7 109.4 106.7 107.7 107.8 101.2 101.1 105.1 104.7 106.0 Coal............................. .69 104.8 114.7 110.3 112.4 118.3 115.6 99.4 112.1 110.3 67.6 85.3 111.5 113.0 114.9 Oil and gas extraction. 4.42 107.7 109.5 109.7 108.8 108.4 108.4 107.9 107.1 107.4 106.4 103.6 103.9 103.4 104.7 Utilities Electric., 3.91 158.6 155.1 158.3 159.0 160.3 162.7 162.8 162.4 161.2 162.9 163.0 Gas....... 1.17 117.9 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 50 BUSINESS ACTIVITY; CONSTRUCTION a APRIL 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonag­ utiliza­ Con­ ricul­ Period Products tion struc­ tural Total Whole­ Total in mfg. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales3 sumer com­ Total Mate­ Manu­ output tracts ment— ment modity Inter­ rials factur­ = 100) Total1 Con­ Equip­ mediate ing Total sumer ment goods 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64. 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 197 3 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 197 4 124. 123.1 121.7 128.8 111.8 128.3 127.4 124.4 168.6 118.9 102.1 156.6 147.7 160.1 1974— M Fe a b r . . . 1 1 2 2 4 4. . 7 6 1 1 2 2 2 2 . . 6 4 1 1 2 2 1 0 . . 0 6 1 1 2 2 8 8 . . 5 3 1 1 1 0 0 9 . . 1 9 1 12 2 9 8 . . 1 2 1 1 2 2 8 8 . . 8 3 1 1 2 2 4 4 . .5 6 580.5 1 1 8 8 1 7 . . 0 0 1 1 1 1 8 8 . .5 6 1 1 0 02 3 . . 9 2 1 15 5 3 2 . . 1 5 1 1 6 6 8 5 1 1 4 4 3 1 . . 1 5 1 1 5 4 1 9. .4 5 Apr., 124.9 122.7 120.8 128.5 110.1 129.4 128.7 124.8 167.0 118.8 103.0 150.4 169 143.9 152.7 May, 125.7 123. 122.4 129.7 112.2 129.2 129.1 125.7 80.1 188.0 119.0 103.0 156.2 172 145.5 155.0 June, 125 124.0 122.6 130.2 112.0 128.9 128.8 125.6 166.0 119.1 103.2 157.9 170 146.9 155.7 July. 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 119.2 103.0 159.5 177 148.0 161.7 Aug. 125.2 123.5 122.1 129. 111.4 128.6 128.5 125.2 79.4 170.0 119.4 102.6 161.5 180 149.9 167.4 Sept. 125.6 123.6 122.6 128. 113.8 127.6 129.3 125.5 187.0 119.7 102.5 162.0 176 151.7 167.2 Oct.. 124 122.9 122.3 128.2 114.0 125.3 128.1 124.6 148.0 119.8 101.7 162.1 175 153.0 170.2 Nov. 121.7 121.4 120.9 126.3 113.2 123.0 122.1 120.9 75.7 154.0 119.1 99.4 157.0 170 154.3 171.9 Dec., 117.3 118.7 118.2 123.4 110.7 120.5 114.8 116.1 176.0 118.0 96.3 152.6 171 155.4 171.5 1975—Jan.. 113.7 115.6 115.1 120.6 107.4 117.5 110.5 112.3 135.0 117.3 93.6 148.9 176 156.1 171.8 Feb.. 110.7 113.2 112.8 118.0 105.3 114.5 106.5 109.0 68.3 135.0 116.4 90.9 142.9 179 157.2 171.3 Mar. 109.6 112.2 112.2 118.7 103.3 112.3 104.9 107.8 115.9 90.0 142.5 178 170.4 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. 5 Figure is for first quarter 1974. Employment and payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Capacity utilization: Based on data from Federal Reserve, McGraw- Prices: Bureau of Labor Statistics data. Hill Economics Department, and Dept, of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1974 1975 Type of ownership and 1973 1974 type of construction Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total construction contracts 1........ 99,304 93,076 6,610 7,911 8,92910,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 By type of ownership: Public........................................ 26,563 32,209 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 Private *.................................... 72,741 60,867 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 By type of construction: Residential building 1.............. 45,696 34,174 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 Nonresidential building........... 31,534 33,859 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 Nonbuilding............................. 22,074 25,042 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 Private housing units authorized... 1,829 1,053 1,325 1,410 1,296 1,120 1,106 1,017 900 823 782 730 822 r682 673 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, Note.—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

APRIL 1975 □ CONSTRUCTION A 51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a ­ l Total In tr d ia u l s­ B m u C i e o l r d m c i i n a ­ g l s b O u t i h l e d r ­ Other Total M ta i r l y i­ H w ig ay h­ d C v e m o a v a n t n e e i s d n o l e o t n r p ­ ­ Other 2 ings 1 1965 ............................. 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 ............................. 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 ............................. 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 ............................. 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 ............................. 93,728 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 1970.............................. 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1 ,908 15,489 1971.............................. 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 1972.............................. 124,077 93,893 54,288 39,605 4,676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 1973............................. 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 1974.............................. 134,506 96,124 54,740 41,384 7,745 16,029 5,951 11,659 38,382 1 ,188 1974—Mar................... 135,069 98,631 48,643 49,988 7,500 16,652 6,336 19,500 36,438 1,401 10,985 2,463 21,589 Apr.................... 136,399 97,445 48,164 49,281 6,920 16,296 6,264 19,801 38,954 1,505 12,209 2,665 22,575 May.................. 138,163 97,889 47,971 49,918 7,606 16,408 5,890 20,014 40,274 1,181 12,322 2,692 24,079 June................... 136,889 98,404 48,269 50,135 8,027 16,425 6,034 19,649 38,485 1,169 r\1,475 ^3,310 r22,531 July r................. 137,879 97,924 48,875 49,049 7,158 15,953 5,915 20,023 39,955 1,131 12,518 2,581 23,725 Aug.r................ 134,425 96,225 48,208 48,017 7,616 15,053 5,691 19,657 38,200 978 11,968 2,568 22,686 Sept.r............... 133,028 94,728 46,005 48,723 7,677 15,668 5,776 19,602 38,300 1,167 13,334 2,886 20,913 Oct.r................. 134,046 95,180 44,285 50,895 8,294 16,300 5,799 20,502 38,866 1,065 12,566 3,070 22,165 Nov.r............... 131,133 93,532 42,341 51,191 8,670 16,037 5,854 20,630 37,601 11,573 2,926 Dec.r................. 132,761 90,865 40,145 50,720 8,774 15,372 5,781 20,793 41,896 1975—Jan.r................. 128,792 88,156 37,652 50,504 8,525 15,053 5,779 21,147 40,636 Feb.p................. 128,094 86,496 36,223 50,273 8,677 15,312 5,844 20,440 41,598 1 Includes religious, educational, hospital, institutional, and other build- Note.—Census Bureau data; monthly series at seasonally adjusted ings. annual rates. 2 Sewer and water, formerly shown separately, now included in “Other.” PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Units Median prices (in thousands Mobile of dollars) of Period home units 1- 2-or- 1- 2-or- 1- 2-o r- ship­ Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale per­ iod) 1965........................................ 1,473 964 509 217 575 228 20.0 21.3 1966........................................ 1,165 779 386 217 461 196 21.4 22.8 1967........................................ 1,292 844 448 240 487 190 22.7 23.6 1968........................................ 1,508 899 608 1,320 859 461 318 490 218 24.7 24.6 1969........................................ 1,467 811 656 1,399 808 592 885 350 535 413 448 228 25.6 27.0 1970........................................ 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 1971........................................ 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 1972........................................ 2,357 1,309 1,048 1,972 1,143 828 1,586 640 947 576 718 416 27.6 28.3 1973........................................ 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 1974........................................ 1,338 888 450 1,689 930 759 1,194 519 676 371 500 408 35.9 36.2 1974—Feb.r........................... 1,881 1,046 835 1,867 1,005 861 1,611 601 1,010 449 515 458 34.9 33.5 Marr....................... 1,511 969 542 1,813 954 859 1,567 597 970 475 564 452 36.0 34.0 Apr r........................... 1,580 975 605 1,727 917 809 1,545 600 945 435 556 450 35.7 34.3 Mayr........................... 1,467 925 542 1,660 889 771 1,512 594 918 451 569 444 35.7 34.7 Juner........................... 1,533 1,000 533 1,805 1,053 752 1,480 581 899 441 524 436 35.1 35.0 July r........................... 1,314 920 394 1,655 934 721 1,443 578 865 380 509 430 36.8 35.3 Aug.r.......................... 1,156 826 330 1,592 919 674 1,406 570 836 370 466 425 35.7 35.5 Septr........................... 1,157 845 312 1,562 899 663 1,372 565 807 316 495 414 36.2 35.7 Oct.r........................... 1,106 792 314 1,627 908 719 1,322 553 769 248 433 409 37.2 35.9 Nov.r.......................... 1,017 802 215 1,657 893 763 1,255 541 714 218 440 403 37.2 36.0 Dec.r........................... 880 682 198 1,615 848 767 1,230 546 684 216 387 400 37.5 36.2 1975—Jan.'........................... 996 742 254 1,500 927 573 1,181 526 655 215 394 402 37.6 36.5 Feb.p........................... 977 718 259 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 52 EMPLOYMENT □ APRIL 1975 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T o ( s o N t p t i a u t .S u l l t a . n A i t o o i . o n ) n n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e r . l ) Total Total E In m c u n p o l l t n o u a y ra g e l r d i 1 ­ In U pl n o e y m ed ­ U (p n e m e r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ industries agriculture 1969.......................... 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973........................... 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1974........................... 150,827 57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 1974—Mar................ 150,066 58,183 92,632 90,381 85,779 82,126 3,653 4,602 5.1 Apr................ 150,283 58,547 92,567 90,324 85,787 82,272 3,515 4,537 5.0 May............... 150,507 58,349 92,982 90,753 86,062 82,565 3,497 4,691 5.2 June............... 150,710 55,952 93,069 90,857 86,088 82,755 3,333 4,769 5.2 July................ 150,922 55,426 93,503 91,283 86,403 82,970 3,433 4,880 5.3 Aug................ 151,135 56,456 93,419 91,199 86,274 82,823 3,451 4,925 5.4 Sept................ 151,367 57,706 93,922 91,705 86,402 82,913 3,489 5,303 5.8 Oct................. 151,593 57,489 94,058 91,844 86,304 82,864 3,440 5,540 6.0 Nov................ 151,812 57,991 93,921 91,708 85,689 82,314 3,375 6,019 6.6 Dec................ 152,020 58,482 94,015 91,803 85,202 81,863 3,339 6,601 7.2 1975—Jan................. 152,230 58,888 94,284 92,091 84,562 81,179 3,383 7,529 8.2 Feb................. 152,445 59,333 93,709 91,511 84,027 80,701 3,326 7,484 8.2 Mar................ 152,646 59,053 94,027 91,829 83,849 80,584 3,265 7,980 8.7 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) Contract Transporta­ Period Total M t a u n ri u n f g ac­ Mining con ti s o t n ruc­ ti p o u n b l a i n c d Trade Finance Service G m ov e e n r t n­ utilities 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 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 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 SEASONALLY ADJUSTED 1974—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 May.............................................. 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................................................ 78,865 19,982 692 3,911 4,699 17,160 4,185 13,705 14,531 Nov............................................... 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 Dec............................................... 77,690 19,146 662 3,798 4,668 16,912 4,182 13,734 14,588 1975—Jan................................................ 77,227 18,718 700 3,789 4,607 16,863 4,173 13,747 14,630 Feb............................................... 76,678 18,292 703 3,597 4,558 16,841 4,155 13,761 14,771 Mar.............................................. 76,353 18,136 707 3,489 4,532 16,804 4,147 13,735 14,803 NOT SEASONALLY ADJUSTED 1974—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................................................ 79,429 20,142 693 4,150 4,718 17,225 4,172 13,719 14,610 Nov............................................... 79,125 19,763 693 3,981 4,702 17,342 4,309 13,707 14,771 Dec............................................... 78,441 19,175 657 3,722 4,663 17,591 4,161 13,665 14,807 1975—Jan................................................ 76,185 18,538 689 3,372 4,552 16,687 4,131 13,513 14,703 Feb............................................... 75,726 18,130 688 3,230 4,494 16,484 4,118 13,596 14,986 Mar............................................... 75,741 17,997 692 3,220 4,496 16,514 4,122 13,639 15,061 Note.—Bureau of Labor Statistics; data include all full- and part- domestic servants, unpaid family workers, and members of Armed time employees who worked during, or received pay for, the pay period Forces are excluded. that includes the 12th of the month. Proprietors, self-employed persons, Beginning with 1968, series has been adjusted to Mar. 1973 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ PRICES A 53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m ip e e r - - F c a o o n u i a e d l l l t e r G a i l n c e a i d c s t ­ y o n F i p a n i n u e s g r h d r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ s r tion tion ices 1929................................. 51.3 48.3 76.0 48.5 1933................................. 38.8 30.6 54.1 36.9 1941................................. 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945................................. 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960................................. 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87‘.8 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 r124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974................................. 147.7 161.7 150.6 130.2 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1974—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............... 143.9 158.6 146.0 128.8 158.2 206.5 141.9 134.0 133.6 133.7 136.3 145.6 133.1 130.4 133.6 May.............. 145.5 159.7 147.6 129.3 159.4 211.0 143.9 137.0 135.0 136.3 137.7 147.2 134.9 132.0 134.4 June.............. 146.9 160.3 149.2 129.8 161 .2 214.2 144.5 139.2 135.7 138.8 139.4 149.4 136.5 133.5 135.8 July............... 148.0 160.5 150.9 130.3 163.2 218.5 146.2 141.4 135.3 140.6 141.0 151 .4 137.8 134.6 137.7 Aug............... 149.9 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 141.3 142.6 153.7 139.3 135.2 139.4 Sept............... 151.7 165.0 154.9 131.4 167.9 222.7 150.2 146.6 139.9 142.2 144.0 155.2 141 .2 137.0 140.4 Oct................ 153.0 166.1 156.7 132.2 170.1 225.5 151.5 149.0 141.1 142.9 145.2 156.3 143.0 137.8 141.4 Nov............... 154.3 167.8 158.3 132.8 171.7 229.2 154.0 151.0 142.4 143.4 146.3 157.5 144.2 138.8 142.7 Dec............... 155.4 169.7 159.9 133.5 174.0 228.8 156.7 152.3 141.9 143.5 147.5 159.0 145.3 139.8 143.9 1975—Jan................ 156.1 170.9 161 .2 134.0 175.6 228.9 160.2 153.2 139.4 143.2 148.9 161.0 146.5 141 .0 144.8 Feb.1............. 157.2 171.6 162.7 135.1 177.3 229.5 162.7 154.7 140.2 143.5 150.2 163.0 147.8 141.8 145.9 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro­ Period m c t o i o e m d s i ­ ­ p F u r a c o r t m d s ­ c f f e a o e s n o e s d d d e s d 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 e tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n u r i a y d n ip ­ ­ ­ F t e u u t r r c e n . , i­ N t m m a o l i e l n n i - c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l u s a ­ s ­ ment erals ment1 1960...................................... 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965...................................... 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966...................................... 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967...................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100 0 100.0 100.0 100.0 100 0 100.0 100.0 100.0 1968...................................... 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969...................................... 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 ioo.s 105.2 1970...................................... 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971...................................... 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972...................................... 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973..................................... 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974..................................... 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 1974—Mar................... 151.4 197.0 163.0 142.4 136.1 143.4 189.0 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 Apr................... 152.7 186.2 159.1 146.6 137.5 145.4 197.9 132.3 129.4 200.2 114.4 161.2 130.8 122.9 146.7 119.4 128.2 May................. 155.0 180.8 158.9 150.5 139.1 146.3 204.3 137.0 133.7 198.0 146.6 168.7 134.1 124.5 150.7 121.4 133.2 June................. 155.7 168.6 157.4 153.6 141.7 146.0 210.5 142.8 135.6 192.2 147.5 174.0 137.2 126.1 152.3 122.8 134.3 July................... 161.7 180.8 167.6 157.8 142.1 146.6 221.7 148.4 139.5 188.6 153.3 180.3 140.3 128.2 156.4 125.1 135.2 Aug................... 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.8 157.6 126.7 135.4 Sept.................. 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 Oct.................... 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 Nov.................. 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 Dec................... 171.5 183.7 188.2 166.1 138.4 143.2 229.0 174.0 149.4 165.4 167.2 184.6 154.0 137.7 164.3 137.0 142.4 1975—Jan.................... 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 Feb................... 171.3 174.6 182.6 168.4 136.5 141.7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 Mar.1............... 170.4 171.1 177.3 168.9 134.3 143.2 233.0 181.8 149.7 169.6 170.0 186.1 158.8 138.5 170.8 139.5 146.8 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME □ APRIL 1975 GROSS NATIONAL PRODUCT (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974? IV I II III IV* Gross national product..................................... 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,344.01,358.81,383.81,416.31,430.9 Final purchases................................................. 101.4 57.2 120.1 278.0 972.61,048.61,149.51,279.61,883.21,315.11.341.91,370.31,407.61,413.1 Personal consumption expenditures................. 11.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9 840.6 869.1 901.3 895.8 Durable goods.............................................. 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 124.3 123.9 129.5 136.1 120.7 Nondurable goods........................................ 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 352.1 364.4 375.8 389.0 391.7 Services......................................................... 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 347.4 352.4 363.8 376.2 383.5 Gross private domestic investment................... 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 224.5 210.5 211.8 205.8 209.4 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 195.5 193.6 198.3 197.1 191.6 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 141.9 145.2 149.4 150.9 151.2 Structures.............................................. 5.0 .9 2.9 9.2 36.1 37.9 41.1 47.0 52.0 49.3 51.3 52.2 51.0 53.7 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 64.4 66.6 75.7 89.8 97.1 92.6 93.9 91.2 99.9 97.5 Residential structures............................... 4.0 .6 3.9 19.4 31.2 42.8 54.0 57.2 46.0 53.6 48.4 48.8 46.2 40.4 Nonfarm................................................ 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 53.0 47.8 48.0 45.4 39.7 Change in business inventories................... 1.7 -1.6 4.5 6.8 4.5 6.3 8.5 15.4 14.2 28.9 16.9 13.5 8.7 17.8 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 4.3 4.9 7.8 11.4 11.9 24.0 13.1 10.4 6.6 17.5 Net exports of goods and services................... 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 9.3 11.3 -1.5 -3.1 1.9 Exports......................................................... 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 140.2 113.6 131.2 138.5 143.6 147.5 Imports......................................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.1 104.3 119.9 140.0 146.7 145.7 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 286.4 296.3 304.4 312.3 323.8 Federal.......................................................... 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 108.4 111.5 114.3 117.2 124.5 National defense...................................... 13.8 14.1 74.6 71.2 74.8 74.4 78.7 75. 3 75.8 16.6 78.4 84.0 Other......................................................... 3.1 4.3 21.6 26.5 30.1 32.2 38.2 33.1 35.7 37.7 38.8 40^6 State and local...................................... ... 1.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 177.9 184.8 190.1 195! 1 199! 3 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 845.7 830.5 827.1 823.1 804.0 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 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974v IV II III IV? National income................... 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065. 1,143 1,106. 1,118. 1,130.21,155 1,167.6 Compensation of employees. 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786. 855. 814. 828. 848.3 868 877.7 Wages and salaries.... 50.4 29.0 62.1 146. 542.0 573.6 626.8 691. 750. 717. 727. 744.6 761, 769.2 Private....................... 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545. 592. 565. 573. 588.3 602, 605.1 Military..................... .3 .3 1.9 5.0 19.6 19.4 20.5 20. 21. 21. 21. 20.9 20. 22.0 Government civilian. 4.6 4.9 8.3 17.4 95.5 104.7 114. 126. 137. 130. 132. 135.4 138, 142.1 Supplements to wages and salaries............... .7 2.7 61.9 69.5 80.3 94.4 105.1 97.7 101.2 103.7 106 108.6 Employer contributions for social in­ surance .................................................. .1 .1 2.0 4.0 29.7 33.1 38.6 50. 52. 53.2 54. 54.6 Other labor income.................................. .6 .4 .7 3.8 32.2 36.4 41.7 47. 48. 50.5 52. 54.0 Proprietors’ income............... 15.1 5.9 17.5 37.5 66.9 69.2 75.9 103. 98. 89.9 92. 91.6 Business and professional. 9.0 3.3 11.1 24.0 50.0 52.0 54.9 58. 59. 60.7 62. 62.5 Farm.................................. 6.2 2.6 6.4 13.5 16.9 17.2 21.0 44. 39. 29.1 29. 29.1 Rental income of persons................................. . 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.5 26. 26. 26.3 26.6 26.8 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 106.2 106.4 107.7 105.6 105.8 105.6 Profits before tax............... 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 141.4 122.7 135.4 139.0 157.0 134.1 Profits tax liability......... 1.4 .5 7.6 17.8 34.8 37.5 41.5 49 56.0 49.5 52.2 55.9 62.7 53.0 Profits after tax.............. 8.6 .4 10.1 24.9 39.3 46.1 57.7 72.9 85.4 73.2 83.2 83.1 94.3 81.1 Dividends................... 5. 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 30.7 31.6 32.5 33.2 33.3 Undistributed profits. 2.8 -1.6 5.7 16.0 14.6 21.1 30.3 43.3 52.8 42.5 51.6 50.5 61.1 47.8 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -4. -4.9 -7.0 -17.6 -35.2 -16.3 -27.7 -33.4 -51.2 -28.5 Net interest....................................................... 4.7 4.1 3.2 2.0 36.5 41.6 45.6 52.3 61.6 55.5 57.5 60.1 62.8 65.9 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

APRIL 1975 □ NATIONAL PRODUCT AND INCOME A 55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1973 1974 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974^ IV I II III IV* Gross national product..................................... 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,344.01,358.81,383.81,416.31,430.9 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 113.9 115.8 118.6 120.7 122.9 Indirect business tax and nontax lia­ bility.................................................... 7.0 7.1 11.3 23.3 93.5 102.7 110.0 119.2 126.9 121.3 122.6 125.9 129.5 129.8 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.0 5.1 5.2 5.3 5.3 Statistical discrepancy........................... .7 .6 .4 1.5 -6.4 -2.3 -3.8 -5.0 -.1 -2.6 -6.3 .3 3.0 2.6 Plus: Subsidies less current surplus of gov- 1 . 1 .2 1.7 1.1 2.3 .6 — 2.9 —. l -2.7 — 3.7 — 2.4 -2.7 Equals: National income.................................. 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,143.01,106.31,118.81,130.21,155.51,167.6 Less: Corporate profits and inventory valu­ ation adjustment................................. 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 106.2 106.4 107.7 105.6 105.8 105.6 Contributions for social insurance....... .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 93.9 99.1 100.8 103.0 103.2 Excess of wage accruals over disburse­ ments ................................................... .0 .6 .0 — .1 — .5 . 0 .0 — .6 -1.5 .0 Plus: Government transfer payments............ .9 1.5 2.6 14.3 75.1 89.0 98.6 113.0 134.6 117. lj 123.1 130.6 138.7 145.8 Net interest paid by government and consumers........................................... 2.5 1.6 2.2 7.2 31.0 31.2 33.0 38.3 42.3 40.4, 40.8 41.9 42.7 43.6 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 30.7 31.6 32.5 33.2 33.3 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.0 5.1 5.2 5.3 5.3 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 808.3 864.0 944.91,055.01,150.51,099.31,112.51,134.61,168.21,186.9 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 159.9 161.9 168.2 175.1 178.1 Equals: Disposable personal incomc............... 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 939.4 950.6 966.5 993.11,008.8 Less: Personal outlays..................................... 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 850.1| 866.2 894.9 927.6 922.3 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9) 840.6 869.1 901.3 895.8 Consumer interest payments............. 1.5 .5 .9 2.4 16.8 17.7 19.8 22.9 25.0 24.0! 24.4 24.8 25.3 25.5 Personal transfer payments to for­ i eigners.............................................. .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 2.2 1.2 1.0 .9 .9 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 89.3 84.4 71.5 65.5 86.5 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 622.9 610.3 603.5 602.9 594.8 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) 1974 1975 Item 1973 1974 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total personal income.............. 1,055.01,150.51,113.41,117.11,125.21,135.21,143.5 1,159.5 1,167.21,178.01,185.01,184.5 1,191.01,191.1 1,194.0 Wage and salary disbursements. 691.7 751.2 728.3 732.1 737.1 745.3 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 763.7 Commodity-producing in­ dustries .......................... 251.9 270.9 264.6 265.3 267.4 270.0 272.6 273.3 276.5 278.3 279.5 272.3 269.3 266.4 260.7 Manufacturing only.......... 196.6 211.3 204.9 205.5 207.8 210.1 212.5 214.0 215.5 217.8 219.4 214.2 209.7 206.4 202.5 Distributive industries. . .. 165.1 178.9 172.8 173.9 175.3 177.8 179.1 180.8 180.7 183.1 183.8 183.9 183.8 183.2 183.8 Service industries................. 128.2 142.6 137.0 138.2 139.1 141.1 142.6 143.5 144.9 146.4 146.9 147.4 148.3 149.8 151.7 Government.......................... 146.6 158.8 153.8 154.6 155.3 156.3 158.9 162.1 159.5 159.9 162.8 164.2 165.2 166.2 167.6 Other labor income................. 46.0 51.4 48.9 49.4 49.9 50.5 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 55.3 Proprietors’ income................. 96.1 93.0 98.5 96.0 92.8 89.9 86.9 90.0 93.1 93.2 91.7 91.6 91.5 88.7 85.6 Business and professional... 57.6 61.2 59.4 59.9 60.2 60.8 61.2 61.9 62.5 62.5 62.5 62.5 62.5 62.7 62.6 Farm..................................... 38.5 31.8 39.1 36.1 32.6 29.1 25.7 28.1 30.6 30.7 29.2 29.1 29.0 26.0 23.0 Rental income........................... 26.1 26.5 26.4 26.4 25.5 26.7 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 27.0 Dividends.................................. 29.6 32.7 31.6 31.9 32.1 32.5 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 33.9 Personal interest income.......... 90.6 103.8 98.3 99.0 100.4 102.0 103.5 104.4 105.3 106.9 108.0 109.5 111.1 111.9 112.5 Transfer payments................... 117.8 139.8 128.4 129.5 134.6 135.8 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.6 165.3 Less: Personal contributions for social insurance........ 42.8 47.9 46.8 47.0 47.2 47.6 47.9 48.5 48.4 48.6 48.9 48.5 48.4 49.5 49.3 Nonagricultural income............ 1,008.01,109.01,064.91,071.61,083.11,096.61,106.8 1,121.7 1,126.81,137.41,145.71,145.21,151.41,154.31,160.0 Agricultural income.................. 47.1 41.5 48.5 45.5 42.1 38.6 36.8 37.1 40.4 40.6 39.3 39.3 39.5 36.8 33.9 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 FLOW OF FUNDS □ APRIL 1975 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 Funds raised, 1by type and sector 1 Total funds raised by nonfinancial sectors................. 69.9 67.9 82.4 95.9 91.8 98.2 147.4 169.4 187.4 175.7 190.8 160.6 1 2 Excluding equities................................................. 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 172.4 185.5 159.3 2 3 U.S. Government....................................................... 1.8 3.6 13.0 13.4 -3.6 12.8 25.5 17.3 9.7 13.0 6.3 19.6 3 4 Public debt securities.............................................. 1.3 2.3 8.9 10.3 -1.3 12.9 26.0 13.9 7.7 13.1 5.1 21.1 4 5 Budget agency issues.............................................. .5 1.3 4.1 3.1 -2.4 -. 1 -.5 3.4 2.0 -. 1 1.2 -1.5 5 6 All other nonfinancial sectors..................................... 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 162.7 184.5 141.0 6 7 Corporate equities.................................................. .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 3.3 5.4 1.2 7 8 Debt instruments.............................................. 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 159.4 179.2 139.7 8 9 Debt capital instruments....................................... 38.8 38.9 45.7 50.6 50.6 57.6 84.2 94.9 97.1 92.9 100.9 84.9 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 17.0 17.8 16.1 10 11 Corporate and foreign bonds........................... 5.9 11.0 15.9 14.0 13.0 20.6 19.7 13.2 10.2 20.9 20.2 21.7 11 12 Mortgages............................................................ 25.6 22.3 22.0 27.1 27.7 25.7 46.9 67.3 73.2 55.0 62.9 47.2 12 13 Home mortgages.............................................. 15.4 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.3 35.8 26.9 13 14 Other residential.............................................. 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.5 7.3 7.7 14 15 Commercial...................................................... 4.4 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.3 15.7 7.0 15 16 Farm................................................................ 2.2 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.8 4.1 5.5 16 17 Other private credit................................................ 29.0 24.4 21.3 32.0 41.0 22.1 26.3 46.7 73.4 66.5 78.2 54.8 17 18 Bank loans n.e.c.................................................. 14.1 10.7 9.5 13.1 15.3 6.4 9.3 21.8 38.6 29.9 42.1 17.7 18 19 Consumer credit.................................................. 9.6 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 9.6 12.7 6.6 19 20 Open-market paper............................................ -.3 1.0 2.1 1.6 3.3 3.8 -.9 -1.6 1.8 14.9 15.4 14.4 20 21 Other................................................................... 5.6 6.2 5.1 7.2 12.0 5.9 6.6 7.3 10.0 12.1 8.1 16.0 21 22 By borrowing sector................................................ 68.1 64.3 69.4 82.5 95.5 85.4 121.9 152.1 177.7 162.7 184.5 141.0 22 23 Debt instruments.............................................. 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 159.4 179.2 139.7 23 24 Foreign................................................................ 2.4 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 20.1 11.3 24 25 State and local governments.............................. 7.7 6.3 7.9 9.8 10.7 11.3 17.8 14.2 12.3 15.8 16.0 15.7 25 26 Households.......................................................... 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 42.5 47.5 37.6 26 27 Nonfinancial business........................................ 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1 27 28 Farm................................................................ 3.3 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.4 7.3 7.5 28 29 Nonfarm noncorporate.................................... 5.7 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 6.7 7.2 6.3 29 30 Corporate......................................................... 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 71.3 81.2 61.4 30 31 Corporate equities.............................................. .3 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 3.3 5.4 1.2 31 32 Foreign................................................................ .3 -.3 .1 .2 .5 .1 * -.4 -.2 -.2 -.2 -.2 32 33 Corporate business............................................. * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 33 Totals including equities 34 Foreign................................................................ 2.7 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.5 19.9 11.2 34 35 Nonfinancial business......................................... 29.4 33.8 38.1 39.9 49.4 48.0 59.6 70.5 85.1 88.9 101.2 76.5 35 36 Corporate........................................................ 20.4 25.3 29.6 31.5 38.9 39.5 46.8 55.3 67.2 74.7 86.7 62.8 36 37 Memo: U.S. Govt, cash balance......................... -1.0 -.4 1.2 -1.1 .4 2.8 3.2 -.3 -1.7 -4.8 -2.3 -7.2 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 95.5 144.2 169.7 189.0 180.5 193.1 167.8 38 39 By U.S. Government............................................ 2.8 4.0 11.8 14.5 -4.0 10.0 22.3 17.6 11.4 17.7 8.6 26.8 39 Private domestic net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1...................................... 173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 330.7 331.6 329.7 1 2 Capital consumption 2........................................... 110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 220.4 218.2 222.6 2 3 Net physical investment......................................... 62.8 72.2 59.7 67.2 72.4 58.2 74.6 98.7 123.7 110.3 113.5 107.1 3 4 Net funds raised..................................................... 57.8 56.5 57.5 69.9 81.1 71.4 99.4 133.6 157.9 131.4 148.7 114.1 4 5 Excess net investment 3.......................................... 5.1 15.7 2.2 -2.7 -8.7 -13.2 -24.8 -34.9 -34.2 -21.1 -35.2 -7.1 5 Total business 6 Total capital outlays........................................ 83.6 96.4 93.4 97.9 108.9 108.0 117.1 134.3 160.5 164.1 166.8 161.4 6 7 Capital consumption.............................................. 50.5 54.2 58.5 63.2 69.5 74.6 80.3 88.2 95.2 103.1 100.9 105.3 7 8 Net physical investment......................................... 33.1 42.3 35.0 34.7 39.4 33.5 36.8 46.0 65.3 61.0 65.9 56.1 8 9 Net debt funds raised............................................. 29.5 32.5 35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1 9 10 Corporate equity issues.......................................... * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 10 11 Excess net investment 3.......................................... 3.7 8.5 -3.2 -5.2 -10.0 -14.5 -22.8 -24.5 -19.8 -27.9 -35.4 -20.4 11 Corporate business 12 Total capital outlays........................................ 62.3 76.5 71.4 75.0 83.7 84.0 87.2 102.5 121.5 125.8 126.0 125.6 12 13 Capital consumption.............................................. 35.2 38.2 41.5 45.1 49.8 53.6 57.7 63.0 67.5 72.5 70.8 74.2 13 14 Net physical investment......................................... 27.1 38.3 29.9 29.9 33.9 30.4 29.5 39.4 54.0 53.3 55.2 51.4 14 15 Net debt funds raised............................................ 20.4 24.0 27.2 31.7 35.5 33.8 35.4 44.4 59.7 71.3 81.2 61.4 15 16 Corporate equity issues.......................................... * 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 3.5 5.6 1.4 16 17 Excess net investment 3.......................................... 6.7 13.0 .4 -1.6 -5.0 -9.1 -17.3 -15.8 -13.1 -21.4 -31.6 -11.3 17 Households 18 Total capital outlays........................................ 89.6 94.2 94.6 109.7 117.8 116.2 136.4 158.8 174.1 166.6 164.9 168.3 18 19 Capital consumption.............................................. 59.9 64.3 69.9 77.2 84.8 91.4 98.6 106.1 115.7 117.3 117.3 117.3 19 20 Net physical investment......................................... 29.7 29.9 24.7 32.5 33.0 24.7 37.8 52.7 58.4 49.3 47.6 51.0 20 21 Net funds raised..................................................... 28.3 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 42.5 47.5 37.6 21 22 1.4 7.2 5.4 2.5 1.3 1.4 -2.1 -10.4 -14.4 6.8 .2 13.3 22 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 5) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by Federally on N a o q t u e a .— rte F r u ly ll b s a t s a i t s e m an e d n t a s n n fo ua r ll s y e c f t o o r r s f lo a w nd s a tr n a d n s f a o c r t i a o m n o ty u p n e t s s a o r u e t s a t v an ai d la in b g le . t s i p o o n n s s . o S r u e c d h c i r s e s d u i e t s a a g r e e n o ci n e s p a . re A - e 5 x 7 c , l u l d in e e d a 1 s 1 . b C or o r r o p w o i r n a g te b e y q u f i i t n y a i n s c s i u a e l s i a n r s e t i n tu e ­ t Requests for these statements should be addressed to the Flow of Funds cash issues by nonfinancial and foreign corporations. Mortgages exclude Section, Division of Research and Statistics, Board of Governors of the loans in process. Open market paper is commercial paper issued by Federal Reserve System, Washington, D.C. 20551. nonfinancial corporations plus bankers’ acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ FLOW OF FUNDS A 57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 1 Total funds advanced in crcdit markets to nonfinancial sectors............................................. 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 172.4 185.5 159.3 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 49.0 39.7 58.3 2 3 U.S. Government securities................................... 3.7 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.8 6.9 10.8 3 4 Residential mortgages............................................ .4 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.9 11.7 16.1 4 5 FHLB advances to S&L’s..................................... .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 5 6 Other loans and securities..................................... 4.1 4.8 4.9 5.1 6.3 5.2 4.9 4.6 7.5 19.7 14.3 25.0 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 5.9 2.4 9.4 7 8 Sponsored credit agencies...................................... 2.2 5.1 -.1 3.2 8.9 10.0 3.2 7.0 20.3 24.0 20.3 27.7 8 9 Monetary authorities.............................................. 3.8 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 6.2 6.1 6.2 9 10 Foreign.................................................................... .1 -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 12.9 10.9 15.0 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 21.6 16.8 26.5 11 Private domestic funds advanced 12 Total net advances...................................................... 62.8 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 145.0 162.5 127.6 12 13 U.S. Government securities................................... * 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 25.1 16.3 34.0 13 14 State and local obligations..................................... 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.0 17.8 16.1 14 15 Corporate and foreign bonds................................ 6.0 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 19.8 18.9 20.6 15 16 Residential mortgages............................................ 18.6 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.0 31.4 18.6 16 17 Other mortgages and loans................................... 31.6 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 64.9 85.0 44.8 17 18 Less: FHLB advances............................................ .7 .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions............................................................ 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 129.2 154.8 103.7 19 20 Commercial banking.............................................. 28.7 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 61.8 87.8 35.9 20 21 Savings institutions................................................ 14.3 7.9 15.0 15.6 14.5 16.9 41.4 49.3 35.1 27.6 35.2 20.1 21 22 Insurance and pension funds................................. 13.6 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.1 28.1 40.0 22 23 Other finance.......................................................... 6.2 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.7 3.8 7.7 23 24 Sources of funds.......................................................... 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 129.2 154.8 103.7 24 25 Private domestic deposits....................................... 38.4 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 71.9 94.6 49.1 25 26 Credit market borrowing....................................... 7.9 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 16.6 23.3 9.9 26 27 Other sources.......................................................... 16.6 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40.8 37.0 44.6 27 28 Foreign funds...................................................... .8 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 11.9 10.5 13.3 28 29 Treasury balances............................................... -1.0 -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -5.3 -2.3 -8.3 29 30 Insurance and pension reserves......................... 11.4 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 29.0 23.0 35.1 30 31 Other, net............................................................ 5.4 3.0 -.6 7.2 13.8 4.4 2.9 16.5 20.2 5.1 5.8 4.5 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 32.4 30.9 33.8 32 33 U.S. Government securities................................... 2.9 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 17.9 14.5 21.2 33 34 State and local obligations..................................... 2.6 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 12.5 8.2 16.8 34 35 Corporate and foreign bonds................................ 1.0 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -3.0 -1.0 -5.1 35 36 Commercial paper.................................................. 1.5 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 2.1 7.3 -3.1 36 37 Other....................................................................... -.1 2.3 1.7 2.1 2.0 1.4 1.5 .8 3.8 2.9 1.9 3.9 37 38 Deposits and currency................................................ 40.5 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 77.9 103.2 52.6 38 39 Time and savings accounts.................................... 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 70.5 88.8 52.1 39 40 Large negotiable CD’s....................................... 3.6 -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 24.2 30.3 18.0 40 41 Other at commercial banks............................... 16.0 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 24.6 32.0 17.1 41 42 13.2 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 21.7 26.6 16.9 42 43 7.8 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 7.4 14.3 .5 43 44 Demand deposits................................................ 5.6 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 1.4 5.8 -2.9 44 45 Currency.............................................................. 2.1 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.0 8.6 3.4 45 46 Total of credit market instr., deposits, and currency. 48.4 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 110.2 134.1 86.3 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 28.4 21.4 36.6 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 89.1 95.3 81.3 48 49 Total foreign funds................................................ .8 2.1 4.3 2.9 9., ..8 23.2 13.6 7.2 24.9 21.4 28.3 49 Corporate equities not included above 1 3.5 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 6.1 5.9 6.2 1 2 Mutual fund shares................................................ 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.6 -.8 3.9 2 3 Other equities......................................................... .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.5 6.7 2.3 3 4 Acquisitions by financial institutions....................... 6.1 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 5.0 8.9 1.2 4 5 -2.6 -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 1.0 -3.0 5.0 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-56. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 U.S. BALANCE OF PAYMENTS □ APRIL 1975 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1973 1974 Line Credits (+), debits (—) 1972 1973 1974^ IV lr II r III I yi> 1 Merchandise trade balance i..................................................... -6,986 471 -5,881 1,210 -175 -1,674 -2,474 -1,558 2 48,768 IQ,211 97,081 20,216 22,212 23,921 24,731 26,217 3 -55,754 -69,806 -102,962 -19,006 -22,387 -25,595 -27,205 -27,775 4 -3,604 -2,266 -2,099 -123 -500 -668 -473 -458 5 -3,055 -2,710 -2,435 -630 -531 -726 -566 -612 6 4,526 5,291 9,679 1,378 3,104 1,870 2,282 2,422 7 6,925 9,415 18,240 2,688 4,650 4,546 4,824 4,220 8 Other U.S. investments abroad.......................................... 3,494 4,569 7,703 1,292 1,499 1,836 2,197 2,170 9 -5,893 -8,693 -16,263 -2,602 -3,045 -4,512 -4,739 -3,968 10 3,110 3,540 3,926 901 918 992 984 1,032 It -6,009 4,327 3,191 2,736 2,816 -206 -247 826 3,800 3,948 -45 -3,030 2,317 12 Remittances, pensions, and other transfers................................ -1,624 -1,943 -1,775 -111 -390 -461 -456 -463 13 Balance on goods, services, and remittances..................................... -7,634 2,383 1,416 2,019 2,426 -673 -703 363 3,077 3,584 -514 -3,502 1,848 14 U.S. Government grants (excluding military)........................... -2,173 -1,933 -5,441 -447 4-2,561 -1,435 -112 -673 15 Balance on current account................................................................. -9,807 450 -4,025 1,572 4-135 -2,108 -1,475 -310 2,653 1,005 -1,990 -4,239 1,199 16 U.S. Government capital flows excluding nonscheduled -1,705 -2,938 408 -1,066 41,297 311 -186 -1,014 17 137 289 1 * * * * 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies........................................................... 238 1,111 634 204 53 273 189 119 19 -98 62 -7,598 -1,451 504 -1,039 -2,402 -4,661 20 -3,517 -4,872 -6,801 -1,374 -627 -1,527 -2,047 -2,600 21 Foreign direct investments in the United States............... 383 2,537 2,308 712 1,281 1,677 -89 -561 22 Foreign securities................................................................ -654 -807 -1,951 -525 -646 -313 -306 -686 23 U.S. securities other than Treasury issues......................... 4,507 4,051 1,199 670 687 419 168 -75 24 Other, reported by U.S. banks.......................................... -1,158 -647 -1,186 -504 -21 -902 68 -331 27 Other, reported by U.S. nonbanking concerns................. 341 -200 -1,167 -430 -170 -393 -196 -408 26 Balance on current account and long-term capital 5......................... -11,235 -1,026 -10,580 -741 1,719 -2,563 -3,874 -5,866 Not seasonally adjusted............................................................... 999 2,120 —2,539 — 6,441 —3,719 27 Nonliquid short-term private capital flows, net....................... -1,541 -4,276 -12,955 -1,253 -3,994 -5,296 -1,427 -2,238 28 Claims reported by U.S. banks.......................................... -1,457 -3,940 -12,223 -1,119 -2,817 -5,311 -1,653 -2,442 29 Claims reported by U.S. nonbanking concerns................ -305 -1,240 -2,453 -664 -1,591 -695 -207 40 30 221 904 1,721 530 414 710 433 164 31 Allocations of Special Drawing Rights (SDR’s)...................... 710 32 Errors and omissions, net.......................................................... -1,790 -2,303 5,197 1,125 1,305 1,463 838 1,592 33 -13,856 -7,606 -18,338 -869 -970 -6,396 -4,463 -6,512 Not seasonally adjusted............................................................... — 89 — 144 — 6, 784 —5, 773 —5 637 34 Liquid private capital flows, net................................................ 3,502 2,302 10,268 3,530 2,016 1,874 4,143 2,235 35 Liquid claims....................................................................... -1,247 -1,944 -5,464 -493 -2,732 -1,197 133 -1,668 36 Reported by U.S. banks.............................................. -742 -1,103 -5,445 -472 -2,368 -1,261 -431 -1,385 37 Reported by U.S. nonbanking concerns................... -505 -841 -19 -21 -364 64 564 -283 38 Liquid liabilities—............................................................... 4,749 4,246 15,732 4,023 4,748 3,071 4,010 3,903 39 Foreign commercial banks......................................... 3,716 2,982 12,655 3,227 4,663 2,161 2,896 2,935 40 International and regional organizations................... 104 377 151 384 -530 297 221 163 41 Other foreigners.......................................................... 929 887 2,926 412 615 613 893 805 42 Official reserve transactions balance, financed by changes in—....... -10,354 -5,304 -8,070 2,661 1,046 -4,522 -320 -4,277 Not seasonally adjusted............................................................... 2,982 1,495 —4,105 — 1 609 —3 851 43 Liquid liabilities to foreign official agencies............................. 9,734 4,452 8,253 -2,145 -557 4,255 1,263 3,295 44 Other readily marketable liabilities to foreign official agen­ cies 6........................................................................................ 399 1,118 596 -354 -277 182 61 630 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt............................................................... 189 -475 655 -147 -2 443 -1 215 46 32 209 -1,434 -15 -210 -358 -1,003 137 47 Gold..................................................................................... 547 48 SDR’s................................................................................... -703 9 — 172 —29 —123 —_ zouo 49 Convertible currencies........................................................ 35 233 3 _ j — 85 _152 50 153 -33 -1,265 -15 -209 -244 -728 -84 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................... 4,189 2,772 1,790 487 393 542 352 504 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. 4,521 8,124 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)..................................... 548 945 Balances excluding allocations of SDR’s: 54 Net liquidity, not seasonally adjusted.................................. -14,566 -7,606 -18,338 -89 -144 -6,784 -5,773 -5,637 55 Official reserve transactions, N.S.A.................................... -11,064 -5,304 -8,070 2,982 1,495 -4,105 -1,609 -3,851 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Imports 2 Trade balance 197 2 1973 1974 1975 1972 1973 19743 1975 1972 1973 19743 1975 Month: Jan... 4.074 4,955 7,150 9.412 4,436 5,244 6,497 9,659 -361 -289 +653 -247 Feb... 3,824 5,070 7,549 9.412 4,473 5,483 7,317 9,622 -649 -413 +232 -210 Mar... 3,869 5,311 7,625 4,515 5,414 7,742 -647 -103 -116 Apr... 3,820 5,494 8,108 4,417 5,360 8,025 -596 + 133 + 83 May.. 3,882 5,561 7,652 4,486 5,703 8,265 -604 -142 -610 June.. 3,971 5,728 8,317 4,468 5,775 8,573 -497 -47 -257 July... 4.074 5,865 8,308 4,565 5,829 8,918 -491 + 37 -611 Aug... 4,197 6,042 8,380 4,726 6,011 9,262 -530 + 32 -882 Sept... 4,176 6,420 8,396 4,612 5,644 8,698 -436 +776 -302 Oct... 4,316 6,585 8,673 4,738 5,996 8,769 -421 +589 -96 Nov... 4,473 6,879 8,974 5,148 6,684 8,965 -675 + 195 +9 Dec... 4,558 6,949 8,862 5,002 6,291 9,250 -444 +658 -388 Quarter: I 11,767 15,337 22,324 13,403 16,140 21,555 -1,657 -804 +769 I I 11,673 16,783 24,077 13,370 16,838 24,863 -1 ,697 -56 -786 III.... 12,447 18,327 25,084 13,903 17,483 26,878 -1,456 + 845 -1 ,794 IV.... 13,347 20,413 26,509 14,888 18,972 26,984 -1,540 + 1,441 -475 Year4... 49,208 70,823 97,907 55,555 69,476 100,972 -6,347 + 1,348 -3,065 1 Exports of domestic and foreign merchandise (f.a.s. value basis); basis. For calender year 1974, the f.a.s. import transactions value was excludes Department of Defense shipments under military grant-aid $100.2 billion, about 0.7 per cent less than the corresponding Customs programs. import value of $101.0 billion. 2 General imports, which includes imports for immediate consumption 4 Sum of unadjusted figures. plus entries into bonded warehouses. 3 Beginning with 1974 data, imports are reported on an f.a.s. trans­ Note.—Bureau of the Census data. Details may not add to totals be­ actions value basis; prior data are reported on a Customs import value cause of rounding. 3. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i n e t F i r o v n e SDR’s 3 E m n o d n t o h f Total Tota G l o 2 ld s T to re c a k sury v c fo C e u c r r i r o e t e r i i e n s b g 4 n ­ l n e ­ p R o e I s M s i i n e ti r F o v n e SDR’s3 1961... 18,753 16,947 16,889 116 1,690 1974 1962... 17,220 16,057 15,978 99 1,064 Mar__ 14,588 11,652 11,567 9 761 2,166 1963... 16,843 15,596 15,513 212 1,035 Apr.. .. 14,642 11,652 11,567 9 824 2,157 1964... 16,672 15,471 15,388 432 769 May... 14,870 11,652 11,567 66 989 2,163 June... 14,946 11,652 11,567 94 1,005 2,195 1965... 15,450 13,806 13,733 781 863 July.... 14,912 11,652 11,567 12 1,021 2,227 1966... 14,882 13,235 13,159 1,321 326 Aug... 15,460 11,652 11,567 224 1,384 2,200 1967... 14,830 12,065 11,982 2,345 420 Sept__ 15,893 11,652 11,567 246 1,713 2,282 1968... 15,710 10,892 10,367 3,528 1,290 Oct.. . . 15,890 11,652 11,567 193 1,739 2,306 1969... 5 16,964 11,859 10,367 52,781 2,324 Nov.... 15,840 11,652 11,567 43 1,816 2,329 Dec.... 15,883 11,652 11,652 5 1,852 2,374 1970... 14,487 11,072 10,732 629 1,935 851 1971... 612,167 10,206 10,132 6 276 585 1,100 1975— 19727. . 13,151 10,487 10,410 241 465 1,958 15,948 11,635 11,635 2 1,908 2,403 19738 . . 14,378 11,652 11,567 8 552 2,166 Feb 16,132 11,621 11,621 2 2,065 2,444 1974.. . 15,883 11,652 11,652 5 1,852 2,374 9 16,256 11,620 11,620 19 9 2,194 9 2,423 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-9. 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 Mar. amounted to $2,343 million, reserve position in IMF, $2,124 at time of revaluation. million, and total U.S. reserve assets, $16,106 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 exports under U.S. resenting the refinancing of economic assistance loans to India; a cor­ military agency sales contracts, and imports of U.S. military agencies. responding reduction of credits is shown in line 16. 2 Fees and royalities from U.S. direct investments abroad or from 5 Includes some short-term U.S. Govt, assets. foreign direct investments in the United States are excluded from invest­ 6 Includes changes in long-term liabilities reported by banks in the ment income and included in “Other services.” United States and in investments by foreign official agencies in debt 3 Includes special military shipments to Israel that are excluded from the securities of U.S. Federally sponsored agencies and U.S. corporations. “net exports of goods and services” in the national income and products (GNP) accounts of the United States. Note.—Data are from U.S. Department of Commerce, Bureau of Eco­ 4 Includes under U.S. Government grants $2 billion equivalent, rep­ nomic-Analysis. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 GOLD RESERVES □ APRIL 1975 4. GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) Esti­ Intl. Esti­ China, End of mated Mone­ United mated Algeria Argen­ Aus­ Aus­ Bel­ Canada Rep. of Den­ Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 791 82 64 85 1971 41,160 4,732 10,206 26,220 192 90 259 729 1,544 792 80 64 85 1972. 44,890 5,830 10,487 28,575 208 152 281 792 1,638 834 87 69 92 1973. 49,850 6.478 11,652 31,720 231 169 311 881 1.781 927 97 77 103 1974—Feh................ 6.478 11,652 231 169 312 882 1.781 927 97 77 103 Mar............... 49,840 6.478 11.652 31,710 231 169 312 882 1.781 927 97 77 103 6.478 11.652 231 169 312 882 1.781 927 97 77 103 6.478 11.652 231 169 312 882 1.781 927 97 77 103 49,835 6.478 11.652 31,705 231 169 312 882 1.781 927 97 77 103 July............... 6.478 11.652 231 169 312 882 1.781 927 97 76 103 6.478 11.652 231 169 312 882 1.781 927 97 76 103 49,830 6.478 11.652 31,700 231 169 312 882 1.781 927 97 76 103 6.478 11.652 231 169 312 882 1.781 927 97 76 6.478 11.652 231 169 312 882 1.781 927 97 76 *49,795 6.478 11,652 *31,665 231 169 312 882 1.781 927 97 76 1975- 6.478 11,635 231 312 882 1.781 927 97 76 6.478 11,622 231 312 882 1 ,781 927 97 76 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi­ Nether­ period Fed. anon co lands Rep. of 1970.......................... 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971.......................... 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972.......................... 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973.......................... 4.261 4.966 148 293 159 173 3.483 891 120 388 103 196 2.294 1974—Feb................ 4.262 4.966 148 293 159 173 3.483 891 120 389 103 194 2.294 Mar............... 4.262 4.966 149 293 159 173 3,483 891 123 389 103 156 2.294 Apr................ 4.262 4.966 149 293 159 173 3,483 891 118 389 103 155 2.294 Mav............... 4.262 4.966 149 293 159 173 3.483 891 142 389 103 154 2.294 June............... 4.262 4.966 150 293 159 173 3.483 891 130 389 103 154 2.294 July............... 4.262 4.966 150 293 158 173 3,483 891 130 389 105 154 2.294 Aug................ 4.262 4.966 150 293 158 173 3.483 891 130 389 107 154 2.294 Sept............... 4.262 4.966 150 293 158 173 3.483 891 130 389 103 154 2.294 Oct................. 4.262 4.966 150 293 158 173 3.483 891 138 389 103 154 2.294 Nov............... 4.262 4.966 150 293 158 173 3.483 891 138 389 103 154 2.294 Dec................ 4.262 4.966 150 293 158 173 3,483 891 148 389 103 2.294 1975-—Jan................. 4.262 4.966 150 158 173 3.483 891 140 389 103 1,194 Feb.*............. 4.262 4,966 150 158 3.483 891 140 389 103 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 Settle­ ments2 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.......................... 67 1,163 129 802 602 244 3.513 99 151 886 148 472 235 1974—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 1,180 129 781 602 244 3.513 99 151 886 148 472 259 July............... 67 1,180 129 788 602 244 3.513 99 151 886 148 472 259 Aug............... 67 1,180 129 778 602 244 3.513 99 151 886 148 472 255 Sept............... 67 1,180 129 778 602 244 3.513 99 151 886 148 472 259 Oct................ 67 1,180 129 786 602 244 3.513 99 151 886 148 472 271 Nov............... 67 1,180 129 774 602 244 3,513 99 151 886 148 472 251 Dec................ 67 1,180 129 771 602 244 3,513 99 151 886 148 472 250 1975-—Jan................. 67 1,180 764 602 244 3.513 99 151 472 265 Feb.*............. 67 759 244 3.513 99 151 472 272 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

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 61 5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid ties to p E e o r n i f o d d Total a a c t 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 ­ i Total t p l S b i i t o e a h a e b s i r b n r o n t y m i k e r r l t e d i s ­ ­ ­ M n T b U o a o a a r b e t n n r . e S a l k d d e s s . e s 3 . t ­ N v k T b o e e c U o a r n r t o e n n t a . m i S n a d b d b s . ­ l s a l . e e r­ N n v k T b o n o e e U o a r n o n r t e n t n a . c m t i S a b d e d b o s . s l a s l n . e e 4 r ­ ­ m r l O e i t a a a i a t b r b e d h k l s i i e e l e l 5 i r y ­ t­ a t m L o l b b i e a i a r t c q i r o b n e o c u a i k s i l m i d a i s d ­ l ­ 6 Total t p l S b i i t o e a h a e b s i r b n r o n t y m i k e r r l e t i d s ­ ­ ­ n M T b o U a o a a r t b e e n n r .S l a k s d d e s . 3 e s . * t 7 ­ o z a m g a n r t n i g t i o a d o n i o a r n o n t n y n r e i n a , ­ e ­ i s l ­ ­ { U.S. notes U.S. 1963............................ 26,394 800 14,425 12,467 1,183 703 63 9 5,817 3,387 3,046 341 1,965 1964 9......................... /29,313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 376 1,722 129,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 376 1,722 1965............................ 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9........................ \ ( 3 3 1 1, , 1 0 4 2 5 0 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 8 4 9 1 6 1 1 2 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 28 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 , , 2 2 7 7 1 2 3 3 , , 7 7 4 4 3 4 5 5 2 2 8 8 9 90 06 5 1967 9......................... 1 /3 3 5 5 , , 8 6 1 6 9 7 1 1 , , 0 0 3 3 3 3 1 18 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 7 74 41 1 1 1 , , 8 8 0 0 7 7 1 1 1 1 , , 0 2 8 09 5 4 4 , , 6 6 7 8 8 5 4 4 , , 1 12 2 7 0 5 5 5 5 8 8 6 69 7 1 7 1968 9......................... / \ 3 3 8 8 , , 6 4 8 73 7 1 1 , , 0 0 3 3 0 0 1 1 7 7 , ,4 3 0 4 7 0 1 1 1 1 , , 3 3 1 18 8 4 5 6 2 2 9 7 7 0 0 1 1 2 2 , , 5 5 1 1 8 8 2 2 , , 3 3 4 4 1 1 1 1 4 4 , , 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 , , 4 4 4 4 4 4 4 6 6 0 5 9 7 72 2 5 2 1969 9......................... io \ / 4 4 5 5 , , 9 7 1 55 4 1 1 , , 0 01 19 9 i<> 1 1 5 5 ,9 ,9 9 7 8 5 1 1 1 1, , 0 0 7 5 7 4 3 3 4 4 6 6 10 5 5 5 5 5 5 10 2 2 , , 5 5 1 1 5 5 1 1 , , 5 5 0 0 5 5 2 2 3 3, , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , , 0 9 6 39 4 5 5 2 2 5 5 6 6 6 5 3 9 1970—Dec. 9.............. \ f4 4 7 6 , , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3 , , 7 7 8 7 6 5 1 19 9 , , 3 3 3 33 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 , , 0 0 2 2 3 3 6 6 9 9 5 5 1 1 7 7 , , 1 16 3 9 7 4 4 , , 6 6 7 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 65 7 8 8 4 4 4 6 J67,681 544 51,209 39,679 1,955 6,060 3,371 144 10,262 4,138 3,691 447 1,528 1971— Dec. n............. \67,808 544 50,651 39,018 1,955 6,093 3,441 144 10,949 4,141 3,694 447 1,523 1972—Dec.................. 82,862 61,526 40,000 5,236 12,108 3,639 543 14,666 5,043 4,618 425 1,627 1973—Dec................ 92,404 66,810 43,919 5,701 12,319 3.210 1,661 17,661 5,930 500 430 2,003 1974—Feb.................. 91,866 64,100 41,992 5.192 12,322 3.210 1.384 19,750 6,223 5,813 410 1,793 M ar................. 95,634 65,527 43,412 5.192 12.329 3.210 1.384 22,088 6,546 6,146 400 1,473 Apr.................. 97,825 67,154 45,175 5,020 12.330 3.210 1,419 22,520 6,802 6,385 417 1,349 May................. 101,285 68,150 46,167 5.013 12.330 3.210 1,430 24,639 6,894 6,528 366 1,602 June................. 104,026 69,994 47,430 5.013 12.330 3.655 1,566 25,103 7,159 6,796 363 1,770 July................. 107,110 71,091 48,429 5.013 12.330 3.655 1,664 26,810 7,338 6,961 377 1,871 Aug................. 109,942 70,970 48,382 4,940 12.330 3.655 1,663 29,355 7,522 7,156 366 2,095 Sept................. 110,628 72,606 50,114 4.880 12.330 3.655 1,627 27,980 8,051 7,658 393 1,991 Oct.................. 111,933 73,718 50,891 4.880 12.330 3.867 1,750 27,970 8,125 7,694 431 2,120 Nov................. 115,351 75,061 51,809 4,906 12.330 3.867 2,149 29,668 8,407 7,926 481 2,215 Dec.................. 117,787 76,570 53,057 5,059 12.330 3.867 2,257 30,248 8,783 8,285 498 2,186 1975—Jan.?5............... 115,885 75,768 51,749 5,177 12.457 3.867 2,518 29,374 8,713 8,205 508 2,030 Feb.7'............... 117,178 78,316 53,967 5,359 12.457 3.867 2,666 27,644 9,134 8,524 610 2,084 1 Includes (a) liability on gold deposited by the IMF to mitigate the Includes $101 million increase in dollar value of foreign currency impact on the U.S. gold stock of foreign purchases for gold subscriptions liabilities resulting from revaluation of the German mark in Oct. 1969 as to the IMF under quota increases, and (b) U.S. Treasury obligations at follows: liquid, $17 million, and other, $84 million. cost value and funds awaiting investment obtained from proceeds of sales 11 Data on the second line differ from those on first line because cer­ of gold by the IMF to the United States to acquire income-earning assets. tain accounts previously classified as official institutions are included 2 Includes BIS and European Fund. with banks; a number of reporting banks are included in the series for 3 Derived by applying reported transactions to benchmark data; the first time; and U.S. Treasury securities payable in foreign currencies breakdown of transactions by type of holder estimated for 1963. issued to official institutions of foreign countries have been increased in 4 Excludes notes issued to foreign official nonreserve agencies. value to reflect market exchange rates as of Dec. 31, 1971. 5 Includes long-term liabilities reported by banks in the United States and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ Note.—Based on Treasury Dept, data and on data reported to the porations. Treasury Dept, by banks and brokers in the United States. Data correspond 6 Includes short-term liabilities payable in dollars to commercial banks generally to statistics following in this section, except for the exclusion abroad and short-term liabilities payable in foreign currencies to commer­ of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign cial banks abroad and to other foreigners. official nonreserve agencies, the inclusion of investments by foreign 7 Includes marketable U.S. Treasury bonds and notes held by commer­ official reserve agencies in debt securities of U.S. Federally-sponsored cial banks abroad. agencies and U.S. corporations, and minor rounding differences. Table 8 Principally the International Bank for Reconstruction and Develop­ excludes IMF holdings of dollars, and holdings of U.S. Treasury letters ment and the Inter-American and Asian Development Banks. of credit and nonnegotiable, non-interest-bearing special U.S. notes held 9 Data on the 2 lines shown for this date differ because of changes by other international and regional organizations. in reporting coverage. Figures on first line are comparable with those shown for the preceding date; figures on 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 62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries 2 End of period countries Canada republics Asia Africa 50,651 30,134 3,980 1,429 13,823 415 870 61,526 34,197 4,279 1,733 17,577 777 2,963 1973........................................................................................ 66,810 45,717 3,853 2,544 10,884 788 3,024 1974—Feb............................................................................... 64,100 42,391 4,262 2,744 10,878 1,000 2,825 Mar.............................................................................. 65,527 42,772 4,195 2,887 11,631 1,249 2,793 Apr............................................................................... 67,154 42,638 4,309 3,532 12,360 1,402 2,913 68,150 42,951 4,302 3,384 12,988 1,620 2,905 June............................................................................. 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.r........................................................................... 72,606 42,680 3,819 4,421 16,182 2,850 2,654 Oct.r............................................................................ 73,718 43.041 3,809 4,046 17,186 2,947 2,689 Nov.r........................................................................... 75,061 43,223 3,710 3,742 18,525 3,204 2,657 Dec.r........................................................................... 76,570 44,169 3,665 4,419 18,529 3,161 2,627 1975—Jan.?............................................................................ 75,768 43,234 3,626 3,659 19,455 3,232 2,562 Feb............................................................................... 78,316 44,540 3,621 4,224 20,125 3,356 2,450 1 Includes Bank for International Settlements and European Fund. foreign official holdings of marketable and nonmarketable U.S. Treasury 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ securities with an original maturity of more than 1 year, except for non­ pean dependencies in Latin America. marketable notes issued to foreign official nonreserve agencies; and in­ vestments by foreign official reserve agencies in debt securities of U.S. Note.—Data represent short- and long-term liabilities to the official Federally-sponsored agencies and U.S. corporations. institutions of foreign countries, as reported by banks in the United States; 7. 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 organizations 6 IMF Payable in dollars gold Deposits Payable invest­ U.S. End of period in ment5 Treasury Other Total1 Deposits U.S. Other foreign Total bills and short­ Treasury short­ cur­ certifi­ term Total bills and term rencies Demand Time2 cates liab. 7 Demand Time2 certifi­ liab. 4 cates3 197 1 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 197 2 60,697 60,201 8,290 5,603 31,850 14,458 496 1,413 86 202 326 800 197 3 69,022 68,425 11,310 6,863 31,886 18,366 597 1,955 101 83 296 1,474 1974—Feb.' 69,248 68,478 11,472 6,829 30,274 19,903 770 0 1,693 77 63 232 1,321 Mar.r 72,852 72,086 11,651 6,956 31,444 22,034 766 0 1,206 96 63 227 820 Apr.r 75,244 74,537 11,977 7,303 32,676 22,581 706 0 1,164 60 57 209 838 Mayr 78,721 78,068 11,672 7,609 33,983 24,805 653 0 1,388 95 53 46 1,194 Juner 80,982 80,190 12,856 8,253 34,038 25,043 792 0 1,653 106 66 91 1,390 July r. 83,945 83,279 12,222 8,643 34,178 28,235 666 0 1,745 121 66 51 1,508 Aug.r 86,815 86,069 11,841 9,073 33,179 31,976 746 0 1,921 81 68 146 1,627 Sept.» 87,652 86,957 12,769 9,222 33,467 31,499 696 0 1,900 128 69 75 1,629 Oct.r. 88,552 87,833 11,228 9,789 34,187 32,628 719 0 1,997 125 89 93 1,690 Nov.r 91,439 90,695 12,860 9,532 35,020 33,283 744 0 2,036 128 89 94 1,725 Dec.r 93,571 92,805 14,054 10,081 35,190 33,480 766 0 1,981 139 105 25 1,711 1975—Jan.?. 91,213 90,492 12,299 10,153 36,899 31,142 721 1,885 123 104 25 1,633 Feb.*. 92,016 91,283 12,145 10,324 39,258 29,555 733 0 1,880 118 95 89 1,577 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time2 certifi­ liab. 4 Demand Time2 certifi­ liab. 7 cates 3 cates 3 1971. 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32.311 3,177 165 1972. 59,284 8,204 5,401 31,523 13,659 496 40,000 1 ,591 2,880 31,453 3,905 171 1973. 67,067 11,209 6,780 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 127 1974—Feb. 67.555 11,394 6,766 30,042 18,582 770 41,992 2,408 3,703 29,917 5,836 127 Mar.r. 71,646 11,555 6,894 31,217 21,215 766 43,412 2,631 3,800 31,064 5,790 127 Apr.r. 74,080 11,917 7,246 32,467 21,742 706 45,175 2,920 3,949 32.312 5,867 127 May r. 77,334 11,577 7,556 33,937 23,611 653 46,167 2,352 4,025 33,731 5,931 127 Juner. 79,329 12,750 8,187 33,947 23,652 792 47,430 2,643 4,277 33,745 6,638 127 July'.. 82,200 12,102 8,578 34,128 26,727 666 48,429 2,561 4,445 33,749 7,547 127 Aug. r. 84,893 11,760 9,005 33,033 30,349 746 48,382 2,473 4,429 32,687 8,665 127 Sept.r. 85,752 12,641 9,153 33,392 29,870 696 50,114 2,824 4,313 32,955 9,895 127 Oct.r. 86.555 11,104 9,700 34,094 30,938 719 50,891 2,168 4,483 33,634 10,478 127 Nov.r. 89,403 12,732 9,443 34,927 31 ,558 744 51,809 2,472 4,122 34,467 10,621 127 Dec.r. 91,590 13,915 9,976 35,165 31,768 766 53,057 2,951 4,324 34,656 10,999 127 1975—Jan.?.. 89,328 12,175 10,049 36,875 29,509 721 51,749 2,187 4,349 36,531 8,683 Feb.?. 90,135 12,027 10,229 39,169 27,978 733 53,967 2,061 4,357 38,840 8,710 To banks9 To other foreigners To banks Payable in dollars and other foreigners End of period Total Payable in Deposits U.S. Other Deposits U.S. Other foreign Treasury short- Treasury short­ cur­ Total bills and term Total bills and term rencies Demand certifi­ liab. 4 Demand certifi­ liab. 7 cates cates 197 1 14,643 10,721 3,399 320 6,995 3.694 1,660 1,666 96 271 228 197 2 19,284 14,340 4,658 405 5 9,272 4,618 1,955 2,116 65 481 325 197 3 23,147 17,178 6,941 515 11 9,710 5,500 2,143 2,353 68 936 469 1974—Feb. ' 25,563 19,107 6,853 523 32 11,701 5,813 2,134 2,540 93 1,045 642 Mar.; 28,233 21,449 6,568 506 54 14,321 6,145 2,356 2,588 98 1,104 639 Apr.r 28,905 21,940 6,599 677 63 14,601 6,385 2,398 2,620 92 1,274 579 May r 31.167 24,113 6,910 788 82 16,334 6,528 2,315 2,744 124 1,346 526 Juner 31,899 24,439 7,689 996 95 15,660 6,795 2,419 2,915 107 1,355 665 July r. 33,771 26,271 7,105 1,165 204 17,797 6,961 2,436 2,967 175 1,383 539 Aug.1 36,511 28,736 6,890 1,426 200 20,220 7,156 2,397 3,150 145 1,464 618 Sept.1 35,639 27,411 7,096 1,576 258 18,481 7,659 2,722 3,264 179 1,495 568 Oct.r 35,664 27,379 6,361 1,796 268 18,954 7.694 2,574 3,422 193 1,505 591 Nov.1 37,594 29,051 7,622 1,713 253 19,463 7,927 2,638 3,608 207 1,474 617 Dec.r 38,533 29,609 8,253 1,856 232 19,268 8,285 2,710 3,796 277 1,502 639 1975—Jan.?. 37,579 28,654 7,363 1,943 158 19,190 8,204 2,625 3,757 186 1,636 721 Feb.? 36.168 26,911 7,148 1,997 125 17,640 8,524 2,818 3,875 203 1,629 733 1 Data exclude “holdings of dollars” of the IMF. 7 Principally bankers’ acceptances, commercial paper, and negotiable 2 Excludes negotiable time certificates of deposit, which are included time certificates of deposit. in “Other short-term liabilities.” 8 Foreign central banks and foreign central govts, and their agencies, 3 Includes nonmarketable certificates of indebtedness issued to official and Bank for International Settlements and European Fund. institutions of foreign countries. 9 Excludes central banks, which are included in “Official institutions.” 4 Includes liabilities of U.S. banks to their foreign branches, liabilities of U.S. agencies and branches of foreign banks to their head offices and Note.—“Short term” refers to obligations payable on demand or having foreign branches, bankers’ acceptances, commercial paper, and negotiable an original maturity of 1 year or less. For data on long-term liabilities time certificates of deposit. reported by banks, see Table 9. Data exclude the holdings of dollars 5 U.S. Treasury bills and certificates obtained from proceeds of sales of of the International Monetary Fund; these obligations to the IMF consti­ gold by the IMF to the United States to acquire income-earning assets. tute contingent liabilities, since they represent essentially the amount of Upon termination of investment, the same quantity of gold was reac­ dollars available for drawings from the IMF by other member countries. quired by the IMF. Data exclude also U.S. Treasury letters of credit and nonnegotiable, non- 6 Principally the International Bank for Reconstruction and Develop­ interest-bearing special U.S. notes held by the Inter-American Develop­ ment and the Inter-American Development Bank. ment Bank and the International Development Association. Includes difference between cost value and face value of securities in IMF gold investment account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 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 1975 Area and country Dec. Dec. Juner July r Aug. r Sept.r Oct.r Nov.r Dec.r Jan.^ Feb.? ! Europe: 1 272 161 310 484 530 597 568 557 607 597 624 1,094 1,483 1,836 1,828 1,937 1,933 2,047 2,295 2,506 2,391 2,647 Denmark.................................................. 284 659 266 239 251 268 285 338 369 369 324 163 165 174 203 229 219 223 262 266 204 204 4,441 3,483 3,425 3,763 3,611 3,561 3,920 3,822 4,274 4,206 4,035 Germany................................................... 5,346 13,227 13,528 12,602 11,873 9,337 8,623 9,102 9,420 9,948 10,801 238 389 232 222 298 293 255 213 248 253 242 1,338 1,404 1,281 1,327 1,101 3,138 2,748 2,192 2,617 2,101 2,260 Netherlands.............................................. 1,468 2,886 2,352 2,232 2,234 2,498 3,009 3,177 3,234 3,208 3,242 978 965 911 878 894 1,023 1,131 1,181 1,040 874 826 Portugal.................................................... 416 534 411 429 422 435 411 338 310 310 303 256 305 324 362 303 377 347 332 382 379 320 Sweden...................................................... 1,184 1,885 1,211 1,160 1,049 1,096 1,071 1,103 1,138 1,132 1,215 Switzerland............................................... 2,857 3,377 6,386 7,216 7,850 8,393 8,974 9,378 10,007 9,601 9,465 Turkey...................................................... 97 98 125 134 106 100 121 102 152 169 131 5,011 6,148 8,748 8,558 9,071 8,709 7,565 8,166 7,501 6,580 6,100 Yugoslavia................................................ 117 86 100 106 100 151 136 105 183 187 168 Other Western Europe i.......................... 1,483 3,352 2,701 2,851 2,829 3,122 3,218 3,432 4,051 3,103 2,749 U.S.S.R..................................................... 11 22 27 27 26 40 44 33 82 65 59 Other Eastern Europe............................. 81 110 126 133 147 149 136 140 206 172 120 Total.................................................. 27,136 40,742 44,473 44,755 44,861 45,438 44,833 46,267 48,595 45,848 45,834 3,432 3,627 3,550 3,595 3,250 3,754 4,226 3,725 3,503 3,405 3,789 Latin America: Argentina.................................................. 638 924 1,378 1,252 1,189 1,105 1,017 938 886 900 894 Bahamas 2................................................ 540 824 1,485 1,546 3,201 1,216 1,678 1,741 1,452 2,160 2,045 Brazil........................................................ 605 860 782 778 817 873 894 951 1,034 859 927 Chile.......................................................... 137 158 240 279 253 266 270 297 276 284 281 Colombia.................................................. 210 247 217 264 285 293 292 305 305 319 317 6 7 6 7 6 7 6 7 7 6 6 831 1,285 1,412 1,411 1,610 1,643 1,731 1,731 1,770 1,747 1,734 167 282 550 566 445 511 484 474 488 500 456 Peru........................................................... 225 135 166 197 185 182 177 183 272 256 238 Uruguay.................................................... 140 120 121 122 115 120 128 140 147 152 164 1,078 1,468 2,707 2,600 2,999 3,217 2,992 2,896 3,413 2,918 3,351 Other Latin American republics............. 861 884 1,071 1,183 1,066 1,214 1,113 1,176 1,316 1,209 1,263 Netherlands Antilles and Surinam......... 86 71 122 92 103 123 138 135 158 155 132 Other Latin America............................... 44 359 462 672 828 553 508 839 515 892 536 Total.................................................. 5,568 7,626 10,722 10,966 13,101 11,321 11,429 11,815 12,038 12,357 12,346 Asia: China, People’s Rep. of (China Mainland) 39 38 33 39 40 40 43 45 50 50 73 675 757 688 772 842 822 797 808 818 977 1,015 318 372 462 470 490 621 470 551 530 558 546 India.......................................................... 98 85 225 172 131 158 140 156 261 179 177 Indonesia.................................................. 108 133 257 863 785 943 1,600 1,363 1,221 1,327 1,083 Israel......................................................... 177 327 256 226 211 217 218 279 386 414 479 Japan........................................................ 15,843 6,954 9,440 9,991 9,912 10,136 10,407 10,891 10,897 10,442 10,909 Korea........................................................ 192 195 262 215 277 304 313 309 384 315 327 438 515 772 762 715 748 726 731 747 702 642 171 247 524 451 403 362 328 333 333 337 327 Other........................................................ 1,071 1,202 2,572 3,614 4,252 4,726 4,832 5,681 5,446 6,003 6,136 19,131 10,826 15,491 17,576 18,060 19,076 19,874 21,147 21,073 21,305 21,713 Africa: Egypt......................................................... 24 35 84 91 105 S 73 109 109 103 105 106 12 11 39 54 63 I 79 73 59 38 71 81 115 114 102 170 156 157 138 155 130 150 188 Zaire.......................................................... 21 87 58 46 46 43 41 82 84 66 41 Other........................................................ 768 808 1,911 2,042 2,258 2,893 2,973 3,199 3,197 3,272 3,392 Total.................................................. 939 1,056 2,193 2,403 2,627 3,244 3,333 3,604 3,551 3,664 3,809 Other countries: Australia................................................... 3,027 3,131 2,831 2,848 2,926 2,847 2,788 2,759 2,742 2,661 2,568 51 59 69 58 68 72 71 86 89 88 76 Total.................................................. 3,077 3,190 2,900 2,906 2,994 2,918 2,859 2,845 2,831 2,748 2,644 Total foreign countries................................ 59,284 67,067 79,329 82,200 84,893 85,752 86,555 89,403 91,590 89,328 90,135 International and regional: International3......................................... 951 1,627 1,305 1,383 1,567 1,534 1,665 1,752 1,710 1,610 1,602 307 272 227 253 262 261 232 213 202 226 222 156 57 122 108 93 103 100 70 69 50 56 1,413 1,955 1,653 1,745 1,921 1,900 1,997 2,036 1,981 1,885 1,880 Grand Total...................................... 60,697 69,022 80,982 83,945 86,815 87,652 88,552 91,439 93,571 91,213 92,016 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 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 data2 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 3 2 3 3 9 9 12 8 11 Lebanon....................................... 60 55 55 62 68 Ireland, Rep. of................................ 15 17 22 62 53 Malaysia....................................... 25 54 59 58 40 Pakistan........................................ 58 59 93 105 108 Other Latin American republics: Ryukyu Islands (incl. Okinawa) 6 53 Bolivia............................................... 53 87 65 68 102 Singapore..................................... 45 77 53 141 165 Costa Rica........................................ 70 92 75 86 88 Sri Lanka (Ceylon)...................... 6 5 6 13 13 Dominican Republic........................ 91 114 104 118 137 Vietnam........................................ 185 135 98 88 98 Ecuador............................................ 62 121 109 92 90 Oil-producing countries 7 227 534 486 652 1,331 El Salvador....................................... 83 76 86 90 129 Guatemala........................................ 123 132 127 156 245 Haiti.................................................. 23 27 25 21 28 Other Africa: j Honduras.......................................... 50 58 64 56 71 Algeria.......................................... 31 32 51 111 110 Jamaica............................................. 32 41 32 39 52 Ethiopia (incl. Eritrea).............. 29 57 75 79 118 Nicaragua.................................. 66 61 79 99 119 Ghana........................................... 11 10 28 20 22 Paraguay........................................... 17 22 26 29 40 14 23 19 23 20 Trinidad and Tobago...................... 15 20 17 17 21 Liberia.......................................... 25 30 31 42 29 Libya............................................. 296 393 312 331 Other Latin America: Nigeria.......................................... 56 85 140 78 Bermuda............................................ (2) (2) 127 242 201 Southern Rhodesia...................... 2 2 1 2 1 British West Indies........................... 23 36 100 109 Sudan................................... 5 3 3 3 2 Tanzania....................................... 6 11 16 12 12 Other Asia: Tunisia.......................................... 7 10 11 7 17 Afghanistan....................................... 17 25 19 22 11 Uganda......................................... 10 7 19 6 11 Burma................................................ 5 2 17 12 Zambia......................................... 7 28 37 22 Cambodia......................................... 2 3 3 2 4 Jordan............................................... 2 4 4 6 6 All other: New Zealand............................... 27 30 34 39 33 1 Includes Bank for International Settlements and European Fund. 5 Represent a partial breakdown of the amounts shown in the other 2 Bermuda included with Bahamas through Dec. 1972. categories (except “Other Eastern Europe”). 3 Data exclude holdings of dollars of the International Monetary Fund. 6 Included in Japan after Apr. 1972. 4 Asian, African, and European regional organizations, except BIS and 7 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, European Fund, which are included in “Europe.” Syria, and United Arab Emirates (Trucial States). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Other Latin Japan Other other tions ers many dom Europe America Asia coun­ tries 1971.............................. 902 446 457 144 237 56 164 52 30 111 3 87 9 1972 2 fl,000 562 439 93 259 87 165 63 32 136 1 32 10 11,018 580 439 93 259 87 165 63 32 136 1 32 10 1973.............................. 1,467 761 706 310 296 100 165 66 245 132 5 78 16 1974—Feb.r................ 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 Juner................ 1,650 974 676 321 283 73 165 56 220 144 2 77 12 July r................. 1,689 978 711 337 299 75 171 56 231 142 2 97 13 Aug.r................ 1,533 1,005 528 136 316 76 170 60 45 141 1 97 13 Sept.r................ 1,402 920 482 93 316 73 170 60 45 123 1 70 13 Oct. r................. 1,332 852 480 111 299 71 170 48 45 116 1 87 13 Nov.r............... 1,318 832 485 112 298 75 170 48 45 116 1 88 17 Dec................... 1,265 765 500 124 298 79 170 48 45 115 1 101 20 1975—Jan.*................. 1,350 771 580 223 285 71 170 42 26 118 1 200 21 Feb.*................. 1,359 670 689 336 287 66 170 41 23 119 1 313 21 1 Excludes central banks, which are included with “Official institutions.” 2 Data on the 2 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 66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 1974 1975 Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.* Feb. Europe: 7 7 7 7 7 9 9 10 10 10 10 11 12 235 260 260 260 260 260 260 250 250 276 251 252 252 34 34 33 35 34 35 34 34 30 30 30 31 30 United Kingdom............................. 423 439 457 428 424 426 439 459 485 498 493 529 578 86 90 89 87 89 97 101 96 102 98 97 89 83 5 5 5 5 5 5 5 5 5 5 5 5 3 789 835 851 823 819 832 849 854 883 917 885 916 959 Canada................................................ 582 847 848 849 849 851 756 706 707 711 713 697 584 Latin America: Latin American republics............... 11 11 11 11 11 11 11 11 11 11 12 11 91 3 3 3 5 5 5 5 17 25 62 88 88 148 Total........................................ 14 14 14 16 16 16 16 28 36 74 100 99 239 Asia: 4,552 3,703 3,531 3,499 3,498 3,497 3,498 3,497 3,497 3,498 3,498 3,498 3,496 Other Asia....................................... 11 11 11 12 12 12 12 12 12 12 212 325 541 Total......................................... 4,563 3,714 3,542 3,510 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 4,037 Africa................................................... 158 157 157 157 157 156 151 151 151 151 151 151 151 All other.............................................. 25 25 25 25 25 25 25 25 25 25 6,131 5,592 5,437 5,379 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 5,969 International and regional: International................................... 1 217 141 174 57 51 102 23 71 112 144 84 143 Latin American regional................ 48 49 44 41 60 75 71 68 52 67 61 61 60 Total......................................... 49 267 185 214 117 126 173 91 123 179 205 145 203 Grand total............................. 6,179 5,859 5,622 5,594 5,493 5,516 5,479 5,364 5,434 5,566 5,762 5,830 6,172 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 Accept­ Foreign End of period Total Collec­ ances govt, se­ tions made Deposits curities, Official out­ for acct. Other with for­ coml. Other Total institu­ Banks1 Others stand­ of for­ eigners and fi­ tions ing eigners nance paper 197 1 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 1972 2......... 1 1 5 5, , 4 6 7 7 1 6 1 1 4 4 , , 8 6 3 25 0 5 5 , , 6 6 7 7 1 4 1 1 6 6 3 3 2 2 , , 9 97 7 5 0 2 2 , , 5 5 3 3 8 5 3 3 , , 2 2 7 6 6 9 3 3 , , 2 2 2 0 6 4 2 2 . , 6 4 5 7 7 8 8 8 4 4 6 6 4 4 4 4 1 1 2 2 2 2 3 3 197 3 20,726 20,064 7,689 271 4,555 2,863 4,307 4,156 3,912 662 428 119 1974—Feb.r, 22,964 22,120 7,897 309 4,949 2,639 4,427 4,570 5,225 844 594 121 Mar.r 25,789 24,941 9,029 429 5,776 2,825 4,642 5,150 6,120 849 545 160 Apr.r 26,695 25,838 9,537 354 6,124 3,059 4,805 5,838 5.657 857 589 99 Mayr 29,874 28,990 9,916 367 6,355 3,194 5,081 6,624 7,369 884 611 113 Juner 32,383 31,426 11,450 390 7,726 3,334 5,107 7,599 7,270 957 687 130 July r. 33,680 32,677 10,882 480 6,831 3,571 5,152 9,177 7,467 1,003 626 207 Aug.r 35,216 34,411 11,590 453 7,792 3,346 5,295 9,459 8,067 805 461 180 Sept.r 34,132 33,214 10,598 528 6,719 3,352 5,245 9,538 7,832 918 468 217 Oct.r. 34,250 33,220 10,074 371 6,371 3,332 5,356 10,034 7,756 1,030 547 243 Nov.r 36,393 35,365 11,040 439 7,174 3,426 5,345 10,693 8,287 1,028 515 283 Dec.r 38,360 37,150 11,383 394 7,430 3,559 5,637 11,190 8,940 1,210 668 289 1975—Jan.*. 38,399 37,110 10,226 355 6,318 3,553 5,565 10,995 10,324 1,289 719 351 Feb.*, 38,971 37,781 10,348 379 6,432 3,537 5,322 11,081 11,030 1,190 610 336 1 Excludes central banks, which are included with “Official institutions.” age with those shown for the preceding date; figures on the second line 2 Data on the 2 lines shown for this date differ because of changes are comparable with those shown for the following date, in reporting coverage. Figures on the first line are comparable in cover- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 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 1975 Area and country Dec. Dec. Juner July r Aug. r Sept.r Oct.r Nov.r Dec.r Jan.?> Feb.** Europe: 8 11 104 18 72 17 21 42 21 18 38 Belgium-Luxembourg.............................. 120 148 230 266 207 164 301 308 384 401 586 59 48 65 45 49 51 59 45 46 54 53 Finland...................................................... 118 108 134 150 151 146 128 107 122 132 136 France....................................................... 330 621 731 703 760 637 485 791 673 867 873 Germany................................................... 321 311 422 372 379 342 332 438 589 390 435 Greece....................................................... 29 35 49 61 66 59 48 57 64 52 42 Italy........................................................... 255 316 572 437 441 354 340 340 345 351 277 108 133 212 165 112 130 176 183 348 195 210 69 72 91 103 136 113 94 97 119 115 106 Portugal.................................................... 19 23 32 30 24 26 35 25 20 16 39 Spain......................................................... 207 222 404 392 382 253 227 201 196 184 166 Sweden...................................................... 164 153 117 119 139 159 149 160 180 128 99 Switzerland............................................... 125 176 663 386 355 377 277 339 335 252 267 Turkey....................................................... 6 10 10 26 19 15 15 14 15 23 17 United Kingdom..................................... 997 1,459 2,463 2,362 2,619 2,228 1,852 2,332 2,401 2,663 2,733 Yugoslavia................................................ 22 10 20 26 25 28 24 28 22 38 18 20 27 26 19 22 18 31 38 22 22 27 U.S.S.R...................................................... 41 46 47 35 30 21 27 28 46 44 48 Other Eastern Europe............................. 49 59 67 88 89 102 105 86 131 124 100 3,067 3,988 6,458 5,804 6,073 5,239 4,724 5,660 6,076 6,067 6,270 1,914 1,955 2,205 2,348 2,111 2,032 2,556 2,517 2,773 2,904 2,642 Latin America: Argentina.................................................. 379 499 673 686 704 695 679 704 720 783 808 519 875 1,888 1,558 2,086 2,486 2,763 2,616 2,949 3,261 3,973 Brazil........................................................ 649 900 1,477 1,507 1,522 1,534 1,476 1,493 1,415 1,264 1,345 Chile.......................................................... 52 151 187 224 231 250 256 291 290 303 351 Colombia.................................................. 418 397 522 601 679 665 686 675 713 706 677 13 12 13 12 13 14 13 13 14 13 18 1,202 1,373 1,720 1,770 1,828 1,706 1,836 1,898 1,972 1,898 2,004 Panama..................................................... 244 266 392 400 401 410 405 402 503 604 458 145 178 281 353 421 408 433 486 518 504 531 Uruguay.................................................... 40 55 40 59 50 47 46 63 63 75 86 Venezuela.................................................. 383 518 606 644 642 627 557 643 704 795 746 Other Latin American republics............. 388 493 675 690 700 711 724 810 852 873 897 Netherlands Antilles and Surinam......... 14 13 41 38 56 64 61 74 62 45 40 Other Latin America............................... 36 140 358 312 448 370 693 920 1,138 1,451 1,541 Total.................................................. 4,480 5,870 8,872 8,856 9,781 9,989 10,628 11,088 11,913 12,575 13,475 Asia: China, People’s Rep. of (China Mainland) 1 31 23 28 22 9 7 5 4 18 82 China, Republic of (Taiwan).................. 194 140 354 403 443 461 496 482 497 524 472 Hong Kong.............................................. 93 147 208 200 271 243 214 238 223 203 174 India.......................................................... 14 16 18 20 34 17 19 16 14 19 31 Indonesia.................................................. 87 88 115 117 120 122 128 140 157 142 159 Israel......................................................... 105 166 145 193 192 197 200 208 250 265 284 Japan........................................................ 4,152 6,400 10,843 12,395 12,814 12,390 11,714 12,406 12,496 11,811 11,226 Korea........................................................ 296 403 620 641 706 733 760 835 955 1,116 1,286 Philippines................................................ 149 181 302 295 348 340 346 324 371 300 349 Thailand.................................................... 191 273 421 427 429 436 414 416 441 374 365 Other......................................................... 300 394 708 816 677 669 669 666 771 739 776 5,584 8,238 13,757 15,534 16,056 15,617 14,966 15,737 16,178 15,510 15,204 Africa: Egypt......................................................... 21 35 66 68 83 97 93 91 111 106 114 Morocco................................................... 4 5 5 14 10 10 11 12 18 19 15 South Africa............................................. 143 129 202 213 238 243 282 299 329 364 396 13 60 91 93 97 94 107 101 96 31 38 Other......................................................... 118 159 273 286 275 311 312 291 299 265 291 Total.................................................. 299 388 637 675 702 755 806 795 854 785 853 Other countries: Australia................................................... 291 243 383 400 415 422 478 492 466 433 431 40 43 70 63 77 76 91 104 99 125 95 330 286 453 463 492 498 569 597 565 558 526 Total foreign countries................................ 15,674 20,725 32,383 33,680 35,215 34,130 34,249 36.392 38,359 38.398 38.970 3 1 1 1 1 2 1 1 1 1 15,676 20,726 32,383 33,680 35,216 34,132 34,250 36.393 38,360 38.399 38.971 1 Includes Bermuda through Dec. 1972. foreigners, where collection is being made by banks and bankers for 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Total Payable period Loans to— in United Other Latin Other All Other foreign King­ Europe Canada America Japan Asia other long­ curren­ dom coun­ Official Other term cies tries 2 Total institu­ Banks1 foreign­ claims tions ers 1971................. 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 1 Q'TO ** J4,954 4,539 833 430 3,276 375 40 145 704 406 1,996 319 881 503 15,063 4,588 844 430 3,314 435 40 150 703 406 2,020 353 918 514 1973................. 5,962 5,412 1,145 574 3,692 478 72 148 1 ,107 490 2,112 251 1,320 534 1974—Feb.r... 5,995 5,394 1,205 601 3,588 522 79 154 1,183 457 2,087 256 1,343 515 Mar.r. . 6,174 5,558 1,281 657 3,620 541 75 157 1,288 473 2,155 256 1,352 494 Apr.r... 6,783 6,140 1,571 751 3,819 567 76 201 1,574 478 2,370 254 1,373 532 May r... 6,830 6,214 1,570 772 3,872 550 67 224 1,559 467 2,434 241 1,381 524 Juner... 7,087 6,475 1,622 792 4,061 546 66 222 1,686 496 2,487 244 1,434 518 July'. .. 7,115 6,502 1,490 909 4,104 545 67 249 1,603 498 2,552 269 1,423 520 Aug.r... 7,055 6,448 1,456 913 4,080 539 68 285 1,545 503 2,527 269 1,416 511 Sept.r.. 6,999 6,386 1,419 853 4,113 542 71 266 1,535 543 2,479 247 1,425 505 Oct.'... 7,250 6,571 1,441 914 4,216 608 71 333 1,725 523 2,495 264 1,396 515 Nov.r... 7,251 6,561 1,373 933 4,254 618 72 339 1,652 506 2,574 257 1,392 531 Dec.r... 7,155 6,481 1,331 931 4,219 609 65 329 1,578 486 2,602 258 1,359 542 1975—Jan.*... 7,262 6,624 1,368 967 4,289 583 54 323 1,669 475 2,603 248 1,388 558 Feb.*... 7,457 6,797 1 ,378 1 ,059 4,360 606 54 347 1 ,749 485 2,675 248 1,355 598 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 2 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) Marketable U.S. Treas. bonds and notes1 U.S. corporate Foreign bonds Foreign stocks securities2 Net purchases or sales Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases oi Total and sales sales sales regional Total Official Other 1972............................. 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 1973............................. 305 -165 470 465 6 18,569 13,810 4,759 1,474 2,467 -993 1,729 1,554 176 1974............................. -417 156 -573 -642 69 15,624 13,661 1,963 1,045 3,325 -2,281 1,899 1,718 181 1975--Jan.-Feb.*. . .. 409 -3 412 300 112 2,808 2,310 498 248 1,762 -1,513 281 329 -48 1974--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 -172 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 r................ 23 9 14 14 1,049 1,056 -7 94 251 -158 128 116 12 Aug.r............... -37 47 -84 -73 -11 1,400 1,132 268 59 214 -155 146 117 29 Sept.r.............. -116 -82 -33 -60 27 1,361 1,183 178 72 152 -80 145 100 45 Oct.r............... 70 32 38 38 1,568 1,364 205 86 362 -276 89 152 -63 Nov.r.............. 132 57 76 25 50 1,415 1,311 103 92 170 -78 124 102 22 Dec.r............... 196 26 171 153 17 1,037 808 228 101 524 -423 117 87 30 1975-—Jan.*................ 68 -60 127 118 9 1,155 904 251 131 1,207 -1,076 147 156 -9 Feb.*............... 341 57 285 182 102 1,653 1,406 247 118 555 -437 134 173 -39 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 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 many lands land King­ Europe Europe Canada America Asia Other1 sales (—) dom 197 2 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 197 3 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 197 4 7,552 7,095 457 203 39 330 36 -304 50 354 -6 -33 131 10 1974—Fe b 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........... 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 r........ 508 510 -2 13 5 39 -9 -49 3 2 10 -2 -14 2 Aug.r....... 580 502 78 19 18 16 15 7 -11 64 14 9 -10 * Sept.r... . 447 445 2 -9 17 21 -6 -22 -3 -3 6 4 -6 1 Oct............ 673 695 -22 17 -30 9 -39 -82 11 -114 3 2 95 -7 Nov.r. . . . 604 616 -12 5 1 -2 -35 -51 4 -77 -2 -5 70 1 Dec.r........ 450 429 -21 13 13 20 -10 -76 9 -30 14 10 27 1975— Jan.-Feb.* 2,113 1,390 723 55 22 139 24 438 32 234 17 1975—Jan.*........ 731 541 190 34 8 42 -7 15 107 12 84 2 Feb........... 1,382 849 534 21 14 115 147 9 331 20 150 15 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 France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h tr e i r es I r n e t g l. i o a n n a d l 197 2 1,881 336 77 74 135 367 315 1,303 82 22 323 2 * 148 197 3 1,948 201 -33 -19 307 275 473 1,204 49 44 588 * 10 52 197 4 1,614 96 33 183 96 352 -59 702 50 43 557 8 10 253 1974—Fe b -144 1 * * * 45 -15 30 -2 -5 -119 * * -47 Mar.......... 139 1 * -2 6 -79 -6 -81 -1 6 -1 * * 215 Apr........... 203 60 3 * 8 26 17 114 4 -1 * * « 86 May......... 66 10 * * 28 19 1 59 3 5 3 * * -3 June......... 242 5 3 116 15 64 -17 185 1 4 -3 * * 56 July.......... -5 -1 2 72 2 36 -11 100 1 5 7 * 10 -128 Aug.......... 190 1 * 1 -1 29 -9 21 2 4 199 * * -36 Sept.......... 176 1 1 -1 2 54 -3 55 4 2 -15 * 130 Oct........... 226 10 1 -1 13 6 -5 25 18 5 100 * * 79 Nov.r... . 224 4 -1 2 -1 -20 -6 -23 11 1 398 * * -163 Dec.r........ 207 1 * -4 1 54 5 56 -4 17 93 * * 45 1975—Jan.-Feb.* -225 -1 6 * 8 24 6 -6 30 -1 189 * 1 -438 1975—Jan.*........ 61 2 3 * 6 59 5 74 14 -1 152 * * -177 Feb.*........ -287 -4 3 * 3 -83 1 -80 16 * 37 * 1 -260 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance di­ of U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1972................ -622 -90 -532 505 -635 -69 -296 -66 29 311 314 1973................ -818 139 -957 -141 -569 -120 -168 3 37 1974................ -2,058 -60 -1,999 -544 -1,529 -93 138 7 22 312 339 286 336 1974—Feb.... -46 6 -52 -62 -11 -9 32 -4 1 372 405 Mar__ -311 4 -315 -24 -288 -15 10 * 3 Apr.r.. -144 3 -147 -8 -157 6 12 * * 310 364 May. .. -66 5 -71 -26 -35 -22 10 * 3 316 243 Juner.. -105 3 -107 -75 -121 -6 94 1 * 290 255 July.... -146 1 -147 -63 -108 -1 24 — 1 3 333 231 Aug---- -126 2 -127 -35 -126 -9 42 — 1 1 Sept__ -35 12 -47 -41 -37 5 22 1 3 383 225 Oct...... -340 2 -342 -81 -244 * -18 — 1 2 354 241 Nov.r.. -56 3 -59 -21 -8 -14 -21 2 3 298 178 Dec.r.. -393 -95 -298 -27 -190 -25 -67 12 * 293 193 1975—Jan.-... Feb.*.. -610 -718 -843 -22 -565 -124 -154 22 * Note.—Data represent the money credit balances and money debit balances appearing on the books of reporting 1975—Jan.*... -1,085 -572 -514 -41 -405 -28 -60 20 * brokers and dealers in the United States, in accounts of Feb.*. . -476 -147 -329 19 -160 -97 -94 2 * foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies......................... 1972—Dec. 78,202 4,678 113 27565 71,304 11,504 35,773 1 ,594 22,432 2,220 1973—Dec., 121,866 5,091 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—Jan.. 123,871 4,660 1 ,555 3,105 114,562 19,490 57,663 2,891 34,51 4,649 Feb.. 127,246 4,409 1,612 2,797 117,755 20,357 57,894 3,144 36,360 5.081 Mar. 136,983 7,812 5,334 2,478 123,997 227397 60,563 3,539 37,497 5,174 Apr.. 140,018 5,978 3,502 2,476 128,823 23.119 62,901 3,753 39,050 5,217 May. 145,916 7,893 5,327 2,566 132,513 24,583 64,693 3,703 39,534 5,510 June. 147,465 4,093 2,682 134,954 25.120 64,441 3,610 41,783 5,736 July. 145,004 3,795 2,614 132,885 25,726 61.921 3,688 41,549 5,710 Aug.. 148,568 6,957 2,498 133,235 26,413 60.468 3,422 42,931 5.878 Sept.. 147,643 3,975 2,645 134,845 26,321 61 ,102 3,720 43,701 6,179 Oct.. 145,759 2,244 2,634 134,921 26,929 59.468 3,848 44,676 5,959 Nov.. 150,070 4,686 2,592 136,713 28,353 58,684 4,01“ 45,658 6,078 Dec.. 151,529 6,280 3,846 2,434 138,960 27,536 60,220 4,075 47,129 6,289 1975—Jan.* 151,002 6,543 3,873 2,669 138,493 27,870 58,821 4,151 47,651 5,966 Payable in U.S. dollars. 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—Dec.. 79,445 4,599 1 ,848 2,751 73,018 12.799 39,527 1,777 18,915 1 ,828 1974—Jan.. 81,918 4,186 1 ,518 2,668 75,993 13,245 40,661 2,006 20,021 1 ,799 Feb.. 83,963 4,004 1 ,557 2,448 78,013 13,785 40.922 2,211 21,094 1 ,946 Mar.. 92,908 7,394 5,250 2,143 83,572 15.799 43,273 2,487 22,013 1,941 Apr.. 94,290 3,454 2,165 86,483 16,043 44,919 2,835 22,685 2,188 May. 100,264 5,279 2,268 90,202 16,890 47,373 2,841 23,099 2,514 June. 101,702 4,043 2,410 92,630 17,478 47,819 2,803 24,529 2,619 July. 101,502 3,746 2,373 92,693 18,480 46,394 2,889 24,929 2,691 Aug.. 105,694 6,904 2,239 93,672 19,679 45,627 2,780 25,586 2.879 Sept.. 104,292 3,917 2,426 94,901 19,412 46,322 2,873 26,293 3,049 Oct.. 101,859 2,187 2,409 94,316 19,757 44,691 3,006 26,862 2,947 Nov.. 104,902 6,972 4,632 2,340 94,891 20,610 43,713 3,192 27,376 3,038 Dec.. 105,617 5,984 3,810 2,174 96,478 19,665 45,004 3,289 28,520 3,155 1975—Jan.* 105,641 6,219 3,832 2,387 96,340 20,425 43,108 3,370 29,437 3.082 IN UNITED KINGDOM Total, all currencies......... 1972—Dec.. 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1,018 1973—Dec.. 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 2.183 1974—Jan.. 63,757 1,484 521 964 60,185 9,123 35,796 907 14,359 2,087 Feb.. 63,585 1,477 616 861 59,792 9,209 34,813 916 14,853 2,317 Mar.. 68,076 3,070 2,319 751 63,020 10,706 36,192 887 15,235 1,986 Apr.. 68,959 2,589 1,806 783 64,238 10,819 36,775 1,073 15,572 2,131 May. 71,982 3,792 2,969 823 66,008 11,759 37,920 889 15,439 2.183 June. 71,305 3,661 2/712 949 65,517 11,886 36,468 812 16,352 2,126 July. 69,197 3,309 2,468 840 63,711 12,486 34,575 718 15,932 2,177 Aug.. 70,382 4,008 3,266 741 64,087 12,790 33,929 666 16,701 2,287 Sept.. 70,965 3,494 2,721 774 64,962 12,436 34,804 829 16,893 2,509 Oct.. 68,123 1,873 1,050 823 63,914 12,386 33,500 887 17,141 2,336 Nov.. 69,137 3,387 2,568 818 63,571 13,122 32,128 753 17,567 2,179 Dec.. 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 2,445 1975—Jan.* 68,451 2,633 1,902 731 63,527 12,873 32,057 854 17,743 2,291 Payable in U.S. dollars. 1972—Dec.. 30,257 2,146 27,664 4,326 17,874 5,464 446 1973—Dec.. 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—Jan.. 42,131 1,368 39,932 6,825 25,098 8,010 830 Feb.. 41,762 1,384 39,409 6,902 24,415 8,093 969 Mar.. 46,062 2,967 42,212 8,240 25,365 8,608 882 Apr.. 46,419 2,499 42,895 8,386 25,768 8,741 10,24 May. 49,654 3,693 44,825 9,285 26,994 8,546 1,135 June. 49,363 3,562 44,674 9,425 26,147 9,103 1,126 July. 48,158 3,221 43,798 9,932 24,698 9,169 1,138 Aug.. 49,406 3,915 44,269 10,529 24,500 9,241 1,222 Sept.. 50,075 3,408 45,327 10,305 25,564 9,458 1,339 Oct.. 47,968 1,783 44,873 10,234 25,125 9,514 1,312 Nov.. 48,710 3,277 44,198 10,796 23,551 9,852 1,235 Dec.. 49,211 3,146 44,693 10,265 24,326 10,102 1,372 1975—Jan.* 47,769 2,542 43,959 10,421 23,271 10,268 1,267 IN BAHAMAS AND CAYMANS 1 Total, all currencies........................... 1972—Dec.. 12,642 1,486 214 1,272 10,986 6,663 4,322 170 1973—Dec.. 23,771 2,210 317 1,893 21,041 12,974 8,068 520 1974—Jan.. 24,071 2,108 273 1,835 21,439 13.013 8,425 524 Feb.. 25,657 1,874 167 1,707 23,253 14,226 9,026 530 Mar.. 28,444 3,358 1,971 1,386 24,475 15,404 9,071 611 Apr.. 28,776 2,388 954 1,434 25,765 16,086 9,679 623 May. 30,862 3,164 1,698 1,467 26,953 17,035 9,918 744 June. 31,217 2,262 816 1,446 28,168 17,643 10,524 787 July. 30,401 2,125 615 1,510 27,461 16,821 10,640 815 Aug.. 32,248 4,305 2,834 1,471 27,164 16,156 11,009 779 Sept.. 30,078 2,033 469 1,564 27,189 16.013 11,177 856 Oct.. 30,028 1,876 380 1,495 27,362 16,279 11,083 790 Nov.. 32,207 2,827 1,343 1,484 28,497 17,192 11,305 883 Dec.. 31,512 1,845 463 1,382 28,851 16,853 11,998 815 1975—Jan.* 2 33,082 2,737 1,108 1,629 29,506 16,863 12,643 839 Digitized for FRASEFRor notes see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 3 3,501 997 2,504 72,121 11 ,121 41,218 8,351 11,432: 2,580► . , , 1972—Dec. .. .Total, ail currencies 6 5,126 1,158 3,968 111,615 18,213i 65,625 10,276i 17,5631 5,125 1973—Dec. 0 5,349 1,685 3,664 113,750 18,505 67,726 9,823I 17,696* 4,741 1974—Jan. 6 5,934 2,023 3,911 116,392 19,307 67,531 10,373t 19,181 4,919 3 6,790 2,119 4,671 124,885 21,073 71,736 10,746► 21,33C) 5,30E!.....................Mar. 8 6,959 2,307 4,652 127,584 22,688 71,232 11,612: 22,052! 5,474 6 7,995 2,938 5,057 131,976 23,941 74,193 12,187 21,655: 5,944 5 8,549 3,009 5,54( 132,326 24,234 71,692 14,388: 22,0131 6,589 4 10,129 4,373 5,757 128,565 25,279 66,753 15,130i 21,403i 6,309 8 9,307 4,011 5,296 132,738 26,000 68,750 16,304 21,684• 6,523 3 9,911 4,988 4,923 131,015 26,353 66,060 17,488 21,114 6,718 9 10,357 5,761 4,596 128,866 26,616 62,580 18,171 21,499 6,536 1 11,706 6,054 5,652 131,629 27,754 63,576 19,979 20,320• 6,736 ? 11,655 5,481 6,173 132,943 26,950 65,683 20,133 20,178 6,931 151,0022 11,785 6,309 5,476 132,684 26,988 64,234 21 ,541 19,920' 6,533 ...........1975—Jan.^ 3 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 .........1972—Dec. .Payable in U.S. dollars 3 4,544 993 3,550 73,189 12,554 43,641 7,491 9,502 2,611 .........1973—Dec. 4,826 1,556 3,270 74,900 12,736 44,903 7,432 9,828 2,459 .........1974—Jan. 5,429 1,870 3,559 76,745 13,329 44,438 8,045 10,933 2,441 .....................Feb. 6,219 1,917 4,301 84,378 15,071 48,886 8,475 11,945 2,811 6,389 2,127 4,262 85,617 15,783 47,847 9,195 12,792 2,913 7,405 2,741 4,664 89,846 16,694 50,848 9,817 12,488 3,461 l 7,934 2,800 5,135 90,357 17,070 48,909 11,630 12,748 4,009 9,494 4,160 5,334 89,228 18,404 45,668 12,437 12,719 3,673 8,674 3,820 4,853 94,154 19,449 48,379 13,508 12,819 3,943 9,224 4,763 4,461 92,640 19,614 46,017 14,533 12,476 4,078 9,813 5,558 4,255 90,105 19,478 42,664 15,076 12,887 3,891 11,020 5,828 5,192 92,255 20,280 43,134 16,789 12,052 3,976 11,109 5,314 5,795 92,470 19,338 43,671 17,392 12,068 3,949 108,052 11,322 6,157 5,164 92,953 19,969 42,941 18,201 11,843 3,777 ...........1975— Jan.? IN UNITED KINGDOM f 1,453 113 1,340 41,020 2,961 24,596 6,433 7,030 994 .........1972—Dec. .. .Total, all currencies > 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .........1973—Dec. 2,429 346 2,083 59,356 4,350 36,796 7,880 10,332 1,941 .........1974—Jan. 2,573 269 2,303 58,956 4,193 35,355 8,295 11,112 2,057 3,167 353 2,814 63,096 4,587 37,700 8,592 12,217 1,813 3,123 409 2,714 63,914 4,975 36,524 9,240 13,175 1,922 3,729 749 2,979 66,156 4,890 39,596 9,273 12,398 2,097 3,744 606 3,138 65,429 4,913 36,711 11,289 12,516 2,132 3,439 611 2,828 63,557 5,099 34,293 11,643 12,521 2,201 3,701 713 2,988 64,309 4,794 33,920 12,737 12,858 2,373 3,503 635 2,867 64,919 5,428 33,766 13,544 12,181 2,543 3,227 683 2,544 62,621 5,237 30,621 14,051 12,712 2,275 4,376 889 3,487 62,397 5,071 30,352 15,454 11,521 2,363 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 68,451 3,804 873 2,931 62,360 4,567 30,266 16,419 11,108 2,287 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 .........1972 Dec .Payable in U.S. dollars 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 839 .........1973—Dec. 2,200 329 1,871 37,884 2,846 22,770 6,006 6,262 895 .........1974—Jan. 2,346 243 2,103 37,579 2,729 21,330 6,476 7,044 1,006 2,927 329 2,598 41,708 3,063 24,164 6,830 7,650 969 2,878 384 2,494 42,453 3,234 23,207 7,401 8,612 992 49,301 3,481 724 2,757 44,625 3,083 26,010 7,468 8,064 1,195 48,970 3,516 579 2,937 44,214 3,255 23,669 9,137 8,155 1,239 48,018 3,176 568 2,608 43,528 3,364 22,287 9,550 8,326 1,314 49,481 3,448 692 2,756 44,654 3,278 22,558 10,437 8,382 1,380 50,212 3,177 605 2,572 45,550 3,667 22,818 11,035 8,030 1,486 48,314 2,988 651 2,337 44,033 3,690 20,203 11,444 8,696 1,294 49,668 4,037 865 3,172 44,256 3,557 20,200 12,808 7,691 1,375 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 48,490 3,599 854 2,744 43,578 3,172 19,061 13,736 7,609 1,313 IN BAHAMAS AND CAYMAN Si 12,643 1,220 11,260 1,818 8,105 1,338 163 .........1972—Dec. . .. .Total, all currencies 23,771 1,573 21,747 5,508 14,563 1,676 451 24,071 1,931 21,714 5,266 14,722 1,726 425 25,657 2,244 22,979 5,587 15,448 1,944 435 28,444 2,351 25,551 6,608 16,853 2,089 543 28,776 2,283 26,015 7,102 16,809 2,104 479 30,682 2,567 27,704 8,255 17,217 2,231 591 31,217 2,855 27,723 7,642 17,593 2,488 639 30,401 3,684 26,037 7,663 16,223 2,151 681 .....................July 32,248 2,797 28,713 8,124 18,403 2,186 738 30,078 3,651 25,694 7,142 16,259 2,293 733 30,028 4,219 25,044 7,262 15,650 2,132 765 32,207 4,231 27,196 8,629 16,427 2,139 780 31,512 4,489 26,242 7,808 16,426 2,008 781 2 33,082 4,991 27,338 8,269 16,852 2,217 753 Digitized for FFRoAr SnoEteRs see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 1972. 325 50,934 215,530 1973. 251 52,070 217,068 1,491 1,062 161 183 86 663 534 1974. 418 55.600 16.838 1,141 697 150 173 121 372 443 1974—Mar.. 366 51,342 17,037 19712 / \ 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 Apr.. 517 52,642 17,026 J M un a e y . . 4 3 2 8 9 4 5 5 4 4 , , 1 4 9 4 5 2 1 1 7 7 , , 0 0 2 1 1 4 19722 / ( 1 2 , , 9 3 6 7 5 4 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 3 4 0 0 7 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 July., 330 54,317 16,964 1973................... 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 Dec.. 418 55.600 16.838 Apr......... 3,587 2,981 60 339 209 1,486 922 May........ 3,683 3,051 76 331 227 1,442 979 1975—Jan.., 391 58,001 16,837 June........ 3,677 3,065 62 369 181 1,419 926 Feb. 409 60,864 16,818 July........ 3,787 3,239 74 341 133 1,442 828 Mar.. 402 60,729 16,818 Aug......... 3,521 2,958 51 368 144 1,437 870 Sept......... 3,066 2,483 30 363 189 1,195 864 Oct.......... 2,681 2,109 25 331 216 1,119 835 1 Marketable U.S. Treasury bills, certificates of in­ Nov........ 2,953 2,355 15 325 258 1,283 922 debtedness, notes, and bonds and nonmarketable U.S. Dec.*.... 3,199 2,517 56 402 223 1,427 905 Treasury securities payable in dollars and in foreign currencies. 1975—Jan.*___ 3,227 2,519 45 316 348 1,134 1,113 2 The value of earmarked gold increased because of the changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the Note.—Excludes deposits and U.S. Treasury securities obligation was incurred by the foreigner. held for international and regional organizations. Ear­ 2 Data on the 2 lines for this date differ because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 22. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in : foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter’s name 1970—Dec...................... 2,677 2,182 496 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 2,564 2,109 454 4,894 4,186 383 326 J 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,000 4,467 289 244 1972—Mar...................... 2,844 2,407 437 5,173 4,557 317 300 June..................... 2,925 2,452 472 5,326 4,685 374 268 Sept...................... 2,933 2,435 498 5,487 4,833 426 228 i I 3,119 2,635 484 5,721 5,074 410 237 \ 3,453 2,961 492 6,366 5,699 393 274 1973—Mar...................... 3,375 2,874 502 7,149 6,262 458 429 June..................... 3,375 2,807 568 7,433 6,574 499 361 Sept...................... 3,670 2,971 698 7,788 6,849 528 411 Dec....................... 4,080 3,314 765 8,556 7,645 484 428 1974—Mar...................... 4,507 3,629 878 10,570 9,643 400 528 June..................... 5,188 4,173 1,015 11,165 10,235 420 510 Sept.*................... 5,688 4,653 1,035 10,722 9,802 420 550 i Data on the 2 lines shown for this date differ preceding date; figures on the second line are compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 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 1792 1973 1974 Dec. Dec. Mar. June Sept.* Dec. Dec. Mar. June Sept.* Europe: Austria.................................................... 2 3 4 12 18 19 17 16 17 15 Belgium-Luxembourg........................... 83 136 226 405 485 73 106 153 139 114 Denmark................................................ 7 9 17 18 23 29 46 37 27 25 Finland................................................... 4 7 8 9 12 25 44 42 80 91 France.................................................... 167 168 161 204 192 231 310 413 537 492 Germany, Fed. Rep. of......................... 164 236 238 222 249 195 284 337 345 322 Greece.................................................... 15 40 21 28 28 35 51 87 76 69 Italy.......... ........................................... 121 116 133 143 150 202 239 330 409 432 Netherlands............................................ 109 125 114 104 114 84 112 103 126 143 Norway.................................................. 14 9 9 8 10 16 18 22 35 32 Portugal.................................................. 4 13 24 17 20 19 50 112 101 69 Spain...................................................... 81 77 68 56 56 157 244 414 420 425 Sweden................................................... 13 48 43 52 40 57 71 74 106 97 Switzerland............................................ 105 103 94 114 105 82 101 90 78 155 Turkey.................................................... 4 18 26 28 38 48 34 41 46 41 United Kingdom................................... 1,107 932 1,123 1,219 1,405 1,223 1,543 1,835 1,869 1,767 Yugoslavia.............................................. 7 28 31 36 34 12 49 30 41 39 Other Western Europe.......................... 2 3 3 6 7 12 15 19 23 20 Eastern Europe...................................... 3 31 26 31 78 42 104 79 97 89 Total................................................ 2,013 2,103 2,371 2,712 3,062 2,561 3,437 4,232 4,571 4,438 Canada....................................................... 215 255 320 294 287 965 1,245 1,526 1,573 1,567 Latin America: Argentina................................................ 29 22 18 18 27 79 47 52 52 58 Bahamas1.............................................. 391 419 206 307 315 662 633 760 992 516 Brazil...................................................... 35 64 78 125 160 172 230 409 523 418 Chile........................................................ 18 20 6 9 13 34 42 78 64 122 Colombia................................................ 7 9 18 22 13 39 40 44 51 49 Cuba....................................................... 1 * * * * 1 1 1 1 1 Mexico.................................................... 26 44 72 71 59 181 235 260 263 286 Panama.................................................. 18 13 14 19 21 85 120 178 187 195 Peru........................................................ 4 15 17 11 15 36 47 65 60 40 Uruguay.................................................. 7 2 3 2 2 4 5 6 5 6 Venezuela............................................... 21 31 45 36 49 92 134 136 171 189 Other L.A. republics............................. 45 51 45 60 63 95 134 172 172 182 Neth. Antilles and Surinam................. 10 6 5 6 6 13 12 12 16 15 Other Latin America............................. 4 22 37 59 50 34 214 158 136 159 Total................................................ 615 719 564 745 793 1,527 1,892 2,330 2,692 2,236 Asia: China, People’s Republic of (China Mainland)........................................... 32 42 20 39 23 * 11 8 3 8 China, Rep. of (Taiwan)....................... 26 34 52 72 72 65 121 184 119 131 Hong Kong............................................ 12 41 24 19 19 33 48 65 68 61 India....................................................... 7 14 14 13 10 34 37 36 31 37 Indonesia................................................ 16 14 13 22 38 48 54 51 67 81 Israel....................................................... 19 25 31 39 40 31 38 38 37 53 Japan...................................................... 224 297 374 374 353 468 888 1,212 970 1,086 Korea...................................................... 21 37 38 45 66 67 105 109 124 123 Philippines.............................................. 16 17 9 19 28 59 73 87 86 108 5 6 7 7 10 23 28 31 43 33 Other Asia.............................................. 152 178 273 401 430 206 239 264 313 309 Total................................................ 530 705 855 1,050 1,089 1,035 1,642 2,087 1,860 2,030 Africa: Egypt...................................................... 32 10 35 12 6 16 9 9 13 16 South Africa.......................................... 8 14 22 24 35 52 62 69 85 90 Zaire....................................................... 1 19 21 15 17 8 18 20 17 13 Other Africa.......................................... 62 125 134 156 114 93 127 155 195 202 104 168 212 206 172 170 216 253 310 321 Other countries: Australia . •• •••<<«..» 45 118 134 94 128 83 97 110 117 134 14 12 22 24 32 23 25 31 39 44 59 130 156 117 160 107 123 142 157 178 * * 29 63 125 1 * 1 1 1 3,536 4,080 4,507 5,188 5,688 6,366 8,556 10,570 11,165 10,772 i Includes Bermuda through Dec. 1972. mercial concerns and other nonbanking institutions in the United States. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975 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 K U in n g it d e o d m E O u t r h o e p r e Canada Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th ll er America 1970—Sept.. 2,786 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 2,983 154 670 182 63 615 161 302 77 72 June. 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept.. 2,939 3,019 135 672 765 178 60 597 133 319 85 75 3,159 3,118 128 705 761 174 60 652 141 327 86 85 Dec.1 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—Mar.. 3,093 3,141 129 713 737 175 60 665 137 359 81 85 June., 3,300 3,206 108 712 748 188 61 671 161 377 86 93 Sept.. 3,448 3,187 128 695 757 177 63 662 132 390 89 96 3,540 3,312 163 715 775 184 60 658 156 406 87 109 Dec.1. 3,631 3,409 191 755 793 187 64 692 134 395 86 111 1973—Mar.. 3,818 3,553 156 814 864 165 63 783 124 410 105 125 June.. 3,833 3,622 179 818 819 146 65 813 130 413 108 131 Sept.. 4,066 3,788 216 839 836 147 73 822 140 471 108 137 Dec.. 3,946 3,857 290 782 890 145 79 816 128 342 115 142 1974—Mar.. 3,863 4,045 368 756 927 194 81 796 123 469 119 147 June. 3,549 3,965 362 717 947 184 138 734 122 492 122 148 Sept.* 3,341 4,084 369 720 992 181 145 779 118 529 118 133 1 Data on the 2 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. 25. 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 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 1974....................... 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 1974— Mar............. 6.24 6.50 14.39 11.95 11.31 9.50 11.88 7.00 11.63 6.00 9.07 6.00 Apr............. 7.18 6.93 13.20 11.53 10.00 9.50 11.81 5.63 5.33 6.64 9.86 6.50 May............ 8,22 7.48 13.31 11.36 10.72 9.50 12.90 6.63 8.36 7.00 9.00 6.50 June........... 8.66 8.36 12.61 11.23 10.58 9.50 13.59 5.63 8.79 7.00 8.98 6.50 July............. 8.88 8.52 13.21 11.20 8.70 9.50 13.75 5.63 9.13 7.50 8.57 7.00 Aug............. 8.76 8.83 12.80 11.24 11.11 9.50 13.68 5.63 9.05 7.50 7.09 7.00 Sept............. 8.70 8.84 12.11 10.91 10.69 9.50 13.41 5.63 9.00 7.42 5.08 7.00 Oct.............. 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............ 7.84 7.86 12.07 10.98 7.70 9.50 12.40 5.63 7.20 6.72 7.00 7.00 Dec............. 7.29 7.44 12.91 10.99 7.23 9.50 11.88 5.13 8.25 6.69 6.96 7.00 1975—Jan.............. 6.65 6.82 11.93 10.59 8.40 9.30 11.20 5.13 7.54 6.60 6.18 7.00 Feb............. 6.34 6.88 11 .34 9.88 7.72 9.50 9.91 3.88 4.04 6.56 7.33 7.00 Mar............ 6.29 6.73 10.11 9.49 7.53 8.22 9.06 4.87 5.94 5.87 7.00 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-70 AND A-71, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $29,794 million and $30,086 million, respectively, on Jan. 31, 1975. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ CENTRAL BANK AND EXCHANGE RATES A 75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Mar. 31, 1975 Rate as of Mar. 31, 1975 Country Country Per Month Per Month cent effective cent effective Argentina...................... 18.0 Feb. 1972 Italy................... 8.0 Dec. 1974 Austria........................... 6.50 May 1974 Japan................. 9.0 Dec. 1973 Belgium......................... 7.5 Mar. 1975 Mexico............... 4.5 June 1942 Brazil............................. 18.0 Feb. 1972 Netherlands....... 6.0 Mar. 1975 Canada........................... 8.25 Jan. 1975 Norway.............. 5.5 Mar. 1974 Denmark....................... 9.0 Jan. 1975 Sweden.............. 7.0 Aug. 1974 France........................... 11 .0 Feb. 1975 Switzerland........ 5.0 Feb. 1975 Germany, Fed. Rep. of, 5.0 Mar. 1975 United Kingdom 10.0 Mar. 1975 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 borromings 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 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 Vi 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; 27. 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) 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 1974.................... 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1974—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 148.44 5.5655 2.6559 103.916 17.012 20.540 40.635 12.841 241.37 .15808 .35847 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 12.416 233.29 .14992 .33404 Nov.......... 131.10 5.5511 2.6529 101.280 16.997 21.384 39.836 12.397 232.52 .14996 .33325 Dec.......... 131.72 5.7176 2.7158 101.192 17.315 22.109 40.816 12.352 232.94 .15179 .33288 1975—Jan........... 132.95 5.9477 2.8190 100.526 17.816 22.893 42.292 12.300 236.23 .15504 .33370 Feb........... 134.80 6.0400 2.8753 99.957 18.064 23.390 42.981 12.550 239.58 .15678 .34294 Mar.......... 135.85 6.0648 2.9083 99.954 18.397 23.804 43.120 12.900 241.80 .15842 .34731 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) 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 1974..................... 41.682 8.0000 37.267 140.02 18.119 3.9506 146.98 1.7337 22.563 33.688 234.03 1974—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 Dec.......... 42.431 8.0000 39.331 130.56 18.873 4.0400 144.70 1.7716 23.897 38.442 232.94 1975—Jan........... 43.359 8.0000 40.715 131.72 19.579 4.0855 145.05 1.7800 24.750 39.571 236.23 Feb........... 44.136 8.0000 41.582 133.30 19.977 4.1139 147.16 1.7784 25.149 40.450 239.58 Mar.......... 44.582 8.0000 42.124 134.31 20.357 4.1276 148.70 1.7907 25.481 40.273 241.80 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 BANKS AND BRANCHES □ APRIL 1975 NUMBER IN OPERATION ON DECEMBER 31, 1974 Commercial and mutual savings banks Number maintaining branches or additional offices1 Commercial Commercial Mutual Mutual savings savings Total Member Nonmember Nonmember Total Non­ Non­ Non­ Non­ Na­ State In­ in­ In­ in­ Na­ In­ in­ In­ in­ tional sured sured sured sured tional sured sured sured sured United States2.......... 14,936 14,457 4,710 1,072 8,438 237 319 160 5,477 5,123 1,953 488 2,662 20 258 96 Alabama................... 293 293 93 19 181 129 129 57 7 65 Alaska....................... 12 10 5 5 10 9 5 . . . .. 4 ' "i Arizona..................... 25 25 3 13 10 10 2 7 Arkansas................... 262 262 74 175 130 130 54 68 California................. 198 198 55 123 131 131 45 75 Colorado.................. 324 324 127 119 41 41 21 18 Connecticut.............. 139 71 24 44 68 106 52 21 30 Delaware.................. 20 18 5 12 2 11 9 2 7 District of Columbia 16 16 13 2 14 14 11 2 Florida..................... 716 716 282 397 98 25 71 Georgia..................... 447 447 64 370 204 204 47 150 Hawaii...................... 12 12 2 6 9 9 1 6 Idaho........................ 24 24 6 4 14 13 13 5 2 6 Illinois....................... 1,203 1,203 420 71 692 20 186 186 93 12 81 Indiana..................... 414 410 121 51 236 2 228 227 83 25 119 Iowa......................... 665 665 99 47 511 248 248 47 20 181 Kansas...................... 613 613 171 27 414 101 101 41 7 53 Kentucky................. 342 342 80 11 250 165 165 51 7 107 Louisiana................. 249 249 52 9 188 158 158 39 111 Maine....................... 81 49 20 3 22 58 36 16 17 Maryland................. 117 114 40 7 67 80 77 32 6 39 Massachusetts.......... 319 152 78 13 56 159 228 124 65 13 44 96 Michigan.................. 347 347 117 93 136 248 248 92 69 86 Minnesota................ 746 745 202 28 512 29 28 12 2 14 Mississippi............... 181 181 39 6 136 128 128 33 4 91 Missouri................... 700 700 110 65 519 222 222 42 25 155 Montana................... 153 153 55 44 53 13 13 3 5 5 Nebraska.................. 453 453 121 8 319 62 62 33 1 28 Nevada..................... 8 8 4 1 3 7 7 3 1 3 New Hampshire 111 82 47 1 32 56 45 31 1 13 New Jersey............... 238 218 122 23 73 20 184 169 102 21 46 15 New Mexico............. 77 77 34 7 35 1 60 60 29 5 26 New York................ 423 304 154 70 47 33 119 318 204 114 56 28 114 North Carolina........ 92 92 26 2 63 1 71 71 22 1 47 North Dakota.......... 171 171 43 4 121 3 58 58 15 1 41 Ohio......................... 498 498 219 112 165 2 326 326 169 64 93 Oklahoma................. 460 460 193 15 247 5 90 90 51 3 36 Oregon..................... 50 49 8 39 2 31 30 7 23 Pennsylvania............ 414 406 250 134 7 270 263 155 98 Rhode Island............ 22 16 5 9 2 19 13 5 6 South Carolina........ 91 91 18 6 67 63 63 16 43 South Dakota.......... 158 158 31 27 100 45 45 11 25 Tennessee................. 337 337 75 15 244 200 200 62 130 Texas............... 1,313 1,313 569 38 699 92 92 2 81 Utah......................... 55 55 11 5 38 20 20 5 12 Vermont................... 40 34 17 16 30 26 12 14 Virginia..................... 288 288 109 114 194 194 91 32 71 Washington.............. 101 93 23 59 60 52 16 3 33 West Virginia........... 214 214 100 85 26 26 13 3 10 Wisconsin................. 628 625 128 459 195 195 43 10 142 Wyoming................. 74 74 44 17 Puerto Rico............. 1 1 1 Virgin Islands.......... 1 1 1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BANKS AND BRANCHES A 77 NUMBER IN OPERATION ON DECEMBER 31, 1974—Continued Branches and additional offices 1 Class of bank Commercial banks Mutual savings Outside head office city State banks In Bank­ Total Member Nonmember head ing office facili­ Total city In In In non­ ties 3 Non­ Non­ head contig­ contig­ Na­ State In­ in­ In­ in­ office uous uous tional sured sured sured sured county counties counties United States2.......... 29,886 28,244 15,585 4,202 8,409 48 1,387 255 10,304 9,213 5,415 4,954 197 Alabama................... 412 412 267 19 126 220 159 17 16 5 Alaska...................... 77 76 65 11 25 5 20 27 5 Arizona.................... 423 423 264 26 133 135 112 52 124 2 Arkansas.................. 279 279 144 17 118 173 100 5 1 2 California................. 3,459 3,459 2,646 318 489 469 483 707 1,800 32 Colorado.................. 42 42 22 2 18 41 1 Connecticut.............. 774 547 251 80 216 227 180 362 203 29 Delaware................. 152 130 4 126 22 33 65 44 10 District of Columbia 125 125 86 10 125 1 Florida..................... 104 104 25 77 100 17 Georgia..................... 645 645 311 74 260 314 201 83 11 Hawaii..................... 145 145 10 132 52 38 51 6 Idaho........................ 190 190 154 6 30 18 12 126 1 Illinois...................... 186 186 93 12 81 185 1 7 Indiana..................... 842 841 440 52 349 445 397 1 Iowa......................... 385 385 76 39 270 184 147 54 Kansas..................... 126 126 52 9 65 125 1 Kentucky................. 469 469 193 78 198 284 180 5 Louisiana................. 540 540 227 40 273 316 211 10 3 Maine....................... 322 275 124 31 120 68 138 103 13 Maryland................. 737 695 336 87 272 178 177 233 149 Massachusetts.......... 1,185 884 490 167 224 255 533 643 8 1 Michigan................. 1,476 1,476 694 484 296 640 563 262 11 Minnesota................ 33 32 16 2 14 33 Mississippi............... 499 499 212 17 270 195 137 82 85 Missouri................... 259 259 51 31 177 213 44 Montana................... 13 13 3 5 5 12 Nebraska................. 82 82 44 1 37 82 Nevada..................... 105 105 74 15 16 29 21 42 New Hampshire.... 121 99 78 2 19 22 51 58 New Jersey............... 1,422 1,329 916 208 205 93 306 723 280 113 New Mexico............ 189 189 101 14 74 117 62 9 1 New York................ 3,665 3,084 1,541 1,366 168 581 1,553 984 230 North Carolina........ 1,547 1,547 760 1 776 208 132 272 935 North Dakota.......... 78 78 16 2 58 18 37 22 1 Ohio......................... 1,610 1,610 941 393 276 691 886 31 Oklahoma................ 91 91 52 3 36 91 Oregon..................... 424 420 290 130 4 89 65 72 198 Pennsylvania............ 2,334 2,188 1,325 675 146 292 872 1,169 1 Rhode Island........... 274 213 113 90 61 60 116 65 33 South Carolina........ 578 578 288 9 281 111 67 68 332 South Dakota.......... 115 115 69 13 33 23 31 26 35 Tennessee................. 725 725 352 46 326 444 266 7 1 Texas........................ 105 105 2 11 92 104 1 18 Utah......................... 183 183 93 36 54 33 55 25 70 3 Vermont................... 138 131 46 85 22 48 40 28 Virginia.................... 1,099 1,099 624 208 267 337 205 354 203 13 Washington.............. 743 657 503 36 118 86 253 193 110 187 4 West Virginia.......... 26 26 13 3 10 24 2 Wisconsin................. 325 325 81 22 222 67 208 49 Wyoming................. 1 1 1 1 Virgin Islands.......... 7 7 2 1 Excludes banks that have banking facilities only; banking facilities Note.—Each branch and additional office is located in the same State are shown separately; see note 3. as its parent bank except that 1 national bank in N.J. has 1 branch in Pa., 2 Includes 1 national bank in Puerto Rico and 1 in the Virgin Islands, 1 national bank in Calif, haa 2 branches in Wash, and 1 in Ore., 1 nonin­ with 7 branches that became members of the F.R. System in 1973 and sured (unincorporated) bank in N.Y. has 1 branch in Mass. and 1 in Pa., 1957, respectively. and 3 insured nonmember banks in Puerto Rico have 19 branches in N.Y. 3 Banking facilities (other than branches) that are provided at military In the table these branches are shown acording to their own location rather and other Govt, establishments through arrangements made by the than that of the parent bank. Treasury; they are operated by 134 banks, 42 of which have no other type of branch or additional office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974 (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing T lo o a t n a s l i a n n v d o l d v e in al g e — rs or carrying securities To nonbank Wednesday and finan. i m nv e e n s t t s ­ Total b c m c a o T i n e m a o k r l ­ ­ s T c U t u r s u i e r e . e r S a y ­ s i s . ­ ­ O c t s u i t e e h r ­ s i e ­ r ot T he o rs Total i C n m t a c r d o n i i e a a u m d r l l s ­ ­ ­ A t c u g u r r l a ­ i l ­ T U u r a T e r . n S a y o d s . ­ b d r e o a k O s l e e e t r r c h s s s e . r T U u re r .S a y s o . ­ t T h o er O s se th cs e . r f P s i a a n e i n n l a r e d s s n s . t . ituti O o t n h s er secs. secs. COS., etc. Jan. 2.......... 379,628 19,908 18,026 969 683 230 272,736 111,047 3,676 816 5,669 156 2,772 9,443 18,609 9......... 373,644 16,393 13,950 1 ,911 350 182 269,689 110,467 3,690 1 ,488 5,161 159 2,745 8,533 17,988 16.......... 372,236 15,834 14,027 1 ,105 549 153 269,264 110,484 3,694 844 5,185 151 2,747 8,708 18,146 23.......... 369,178 13,981 12,612 843 352 174 267,962 109,906 3,723 852 4,764 161 2,750 8,360 18,186 30.......... 369,660 15,702 14,275 927 299 201 266,872 109,724 3,726 601 4,601 157 2,736 8,130 18,154 Feb. 6.......... 371,407 16,030 14,046 1 ,340 415 229 268,055 109,986 3,739 1 ,159 5,025 155 2,731 8,106 18,017 13.......... 370,362 16,725 15,093 1 ,035 394 203 267,640 110,149 3,733 731 4,804 151 2,744 7,911 18,129 20......... 371,190 16,659 15,089 984 353 233 267,577 110,142 3,732 586 4,986 148 2,740 7,931 18,213 27......... 372,059 16,414 14,597 1 ,216 366 235 268,739 110,707 3,744 989 5,271 151 2,743 8,128 18,156 Mar. 6.......... 375,493 16,805 15,093 1 ,123 342 247 270,354 111,725 3,776 1 ,057 5,135 148 2,753 8,293 18,133 13.......... 374,813 15,597 14,020 1 ,050 311 216 270,610 112,702 3,792 591 4,898 145 2,777 8,397 18,359 20.......... 375,540 15,016 13,492 993 303 228 273,354 114,739 3,784 575 4,747 141 2,767 8,457 18,400 27.......... 378,094 15,447 13,623 1 ,210 313 301 275,815 115,953 3,778 656 4,642 141 2,770 8,665 18,583 Apr. 3.......... 384,367 16,688 15,172 937 355 224 280,449 118,477 3,795 726 4,557 138 2,772 9,088 19,086 10.......... 385,133 16,440 15,003 891 237 309 281,091 118,926 3,790 857 4,731 138 2,753 8,950 19,263 17 386,531 15,633 14,155 867 271 340 284,031 120,453 3,788 770 4,756 134 2,787 9,406 19,647 24 382,529 14,936 13,495 857 207 377 282,274 119,795 3,807 481 4,433 133 2,770 8,922 19,538 May 1.......... 388,378 16,559 14,964 956 271 368 286,801 121,332 3,804 434 5,078 124 2,781 9,634 20,105 8 385,349 15,089 13,514 938 262 375 284,996 121,444 3,803 334 4,586 125 2,769 9,351 19,940 15 386,476 15,719 14,019 974 342 384 285,881 121,503 3,815 392 4,739 118 2,755 9,183 20,178 22 385,669 15,661 12,702 1 ,924 464 571 286,039 121,041 3,812 1 ,052 4,771 134 2,767 8,989 20,136 29 . 385,201 15,268 13,401 1 ,025 402 440 286,180 120,913 3,835 336 4,735 123 2,733 9,442 20,253 June 5.......... 390,965 18,836 15,454 2,014 686 682 287,657 120,766 3,821 1,542 4,933 126 2,694 9,461 20,410 12 390,055 16,972 13,913 1 ,985 512 562 287,451 121,519 3,834 602 5,002 130 2,689 9,321 20,312 19. , 390,569 15,321 13,213 905 581 622 290,510 123,004 3,962 674 5,102 130 2,667 9,906 20,807 26. 391,779 16,187 14,070 932 552 633 291,481 123,612 3,950 511 4,699 128 2,670 9,867 20,928 July 3.. 394,699 16,326 14,308 1 ,039 495 484 294,749 125,614 3,924 418 4,440 122 2,682 9,979 21,379 10 393,974 16,038 14,177 918 482 461 294,955 125,813 3,922 462 3,994 120 2,669 10,089 21,618 17.......... 393,409 14,930 13,003 1 ,071 402 454 295,938 126,581 3,942 493 3,886 108 2,670 10,230 21,580 24.......... 389,976 12,800 10,971 935 406 488 294,567 126,158 3,908 421 4,008 111 2,664 9,844 21,423 31 397,781 16,527 13,418 1 ,881 581 647 297,975 126,143 3,928 1 ,726 4,696 113 2,677 10,215 21,648 Aug. 7.......... 397,822 16,646 13,558 1 ,962 437 689 297,529 126,427 3,926 1,457 4,379 111 2,696 10,190 21 ,710 14 395,361 15,466 13,113 1,229 450 674 296,465 126,521 3,911 1,059 4,275 109 2,679 9,956 21,736 21 393,575 14,686 12,368 1 ,334 401 583 296,071 126,880 3,922 634 3,783 104 2,672 9,894 21 ,812 28 397,242 16,525 12,021 3,193 428 883 297,819 126,771 3,893 2,111 3,885 102 2,690 9,852 21,894 Sep. 4 397,698 15,987 13,468 1,446 406 667 298,419 127,466 3,879 567 3,838 97 2,673 10,295 21,848 11 401,011 17,171 13,932 1,782 669 788 299,880 127,978 3,859 1,958 4,390 93 2,649 10,202 21,929 18.......... 399,635 16,473 12,254 2,637 779 803 300,343 128,668 3,830 1,445 4,470 94 2,656 10,187 22,173 25.......... 395,413 15,419 11,995 1 ,859 750 815 298,052 128,407 3,803 947 3,812 95 2,642 9,900 21,902 Oct. 2 398,212 16,938 13,834 1 ,300 889 915 299,353 128,827 3,771 898 3,707 101 2,629 10,217 22,069 9, , 401,346 19,550 14,057 3,556 836 1,101 299,397 128,529 3,754 2,500 4,007 91 2,634 9,707 21,888 16 399,288 18,515 14,723 2,059 773 960 298,201 129,032 3,739 618 3,454 92 2,629 9,992 21,955 23 394,150 15,493 12,541 1 ,240 744 968 296,913 128,323 3,751 1 ,324 3,370 94 2,614 9,684 21,710 30 394,981 16,243 12,929 1,820 696 798 296,631 128,328 3,759 966 3,735 94 2,613 9,883 21,525 Nov. 6.......... 399,607 18,050 15,035 1,409 774 832 298,241 129,300 3,733 828 4,043 92 2,614 10,140 21,718 13 403,173 19,800 15,914 2,344 741 801 298,960 129,147 3,711 1 ,742 3,828 91 2,622 9,904 21 ,686 20 400,512 17,426 14,258 1 ,432 920 816 298,730 129,208 3,718 1,946 3,776 86 2,611 9,980 21,696 27 399,890 17,473 14,340 1,398 885 850 298,712 129,798 3,683 633 4,101 94 2,587 10,250 21,624 Dec. 4......... 406,133 19,979 15,172 2,660 1,178 969 301,397 130,278 3,653 2,251 4,331 86 2,595 10,464 21 ,559 11.......... 405,609 18,877 15,357 1 ,519 1,169 832 300,334 130,430 3,642 1,060 4,248 84 2,569 10,615 21,827 18 407,992 18,129 14,563 1 ,411 1 ,328 827 302,395 131,527 3,623 981 4,293 82 2,559 11,153 21,915 25 406,253 17,693 14,107 1,309 1,437 840 301,522 131,386 3,602 772 3,673 86 2,582 11,051 21,763 31 410,229 20,275 15,899 1,937 1,401 1,038 303,129 131,875 3,650 784 4,185 91 2,563 10,978 22,098 Dec. 31 , -1 ,142 1 1 -823 -320 2 3 10 -26 -19 -192 For notes see p. A-82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ WEEKLY REPORTING BANKS A 79 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts.2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic 55,359 4,073 5,098 33,243 1,590 21.185 25,461 5,529 4,422 12,071 3,439 ..................................Jan. 2 55,369 4,242 5,021 33,202 1,534 20,090 25,956 5,913 4,588 11,976 3,479 ............................................ 9 55,654 4.060 4,937 33,212 1,483 19.959 26,071 6,265 4,661 11,744 3,401 .............................................16 55,725 4.060 4,819 33,191 1,524 19,941 26,230 6,374 4,695 11,768 3,393 .............................................23 55,798 3,898 4,637 33,232 1,582 19,896 25,691 5,859 4,673 11,771 3,388 .............................................30 55,859 3,900 4,843 33,247 1,455 19,833 25,527 5,809 4,690 11,701 3,327 55,889 3,597 4,807 33,216 1,490 20,289 25,236 5,635 4,732 11,630 3,239 55,942 3,627 4,705 33,187 1,380 20,258 25,616 4,936 4,252 12,242 4,186 ............................................20 55,905 3,693 4,714 33,214 1,438 19,886 25,329 4,837 4,262 12,111 4,119 ............................................27 55,925 3,670 4,975 33,153 1,468 20.143 25,995 5,440 4,338 11,993 4,224 56,060 3,592 4,958 33,138 1,466 19,735 25,730 5.278 4,346 11,920 4,186 .............................................13 56,261 3,758 5,496 33,105 1.578 19,546 24,869 4,601 4,387 11,772 4,109 .............................................20 56,307 3,766 5,863 33,166 1,650 19,875 24,829 4,649 4,278 11,769 4,133 56,257 3,928 6,234 33,179 1,747 20,465 25.339 5,166 4,273 11,920 3,980 56,349 3,859 6,345 33,226 1,752 20,152 25,694 5,195 4,306 12,192 4,001 .............................................10 56,571 3,803 6,212 33,286 1,866 20,552 24,784 4,439 4,222 12,094 4,029 56,716 3,977 6,352 33,267 1.895 20,188 23,419 3.202 4,192 12,031 3,994 .............................................24 56,905 4,141 6,364 33,225 1,873 21,001 22,960 2,690 4,284 11,954 4,032 57,008 4,006 6,205 33,249 1,839 20,337 22,847 2,669 4,282 11,910 3,986 ............................................. 8 57,322 3,979 6,186 33,326 1,900 20,485 22,262 2,349 3,361 12,545 4,007 .............................................15 57,478 4,049 6,452 33,408 1.877 20,073 22,186 2,400 3,691 12,176 3,919 57,616 4,060 6,323 33.501 1 ,f 20,412 21,850 2,120 3,585 12,253 3,892 .............................................29 57,694 4,013 6,452 33,565 1,859 20,321 22,316 2,727 3,665 11,949 3,975 57,923 3,978 6,225 33,676 1,832 20,408 22,123 2,485 3,764 11,882 3,992 58,195 3,857 6,275 33,797 1,881 20,253 21,801 2,218 3,728 11,885 3,970 58,296 3,959 6,401 33,923 1,966 20,571 20,984 1,531 3,666 11,845 3,942 .............................................26 58,411 3,971 6,690 34,119 2,040 20.960 20,874 1,749 3,590 11,724 3,811 58,526 4,029 6,996 34,137 2,117 20,463 20,350 1.279 3,552 11,708 3,811 .............................................10 58,710 4,116 6,874 34,197 2,022 20,529 20,182 1,320 3,495 11,614 3,753 58,833 4,036 6,859 34,279 1,837 20.186 19,944 1,052 3,563 11,565 3,764 .............................................24 59,008 3,924 6,979 34,420 1.878 20,620 20,914 2,047 3,557 11,562 3,748 58,985 3,865 6,877 34.502 2,075 20,329 21,284 2,458 3,538 11,519 3,769 59,242 3,911 6,725 34,560 1,875 19,906 21,426 2,545 3,644 11,446 3,791 59,426 3,752 6,808 34,610 1.895 19,879 20,976 2,114 3,440 11,164 4,258 59,510 3,704 6,871 34,766 1,656 20,114 21,130 2,328 3,615 10,900 4,287 .............................................28 59,529 3,828 6,906 34,849 1,680 20,964 21,268 2,632 3,831 10,709 4,096 59,642 3,635 6,857 34,899 1,621 20,168 21,782 3.202 3,819 10,701 4,060 59,775 3,677 6,755 34,965 1,639 20,009 20,876 2.472 3,737 10,636 4,031 59,855 3,566 6,526 35,069 1.579 19,949 20,069 1,771 3,722 10,610 3,966 .............................................25 59,840 3,591 6,343 35,159 1,643 20,558 19,766 1,224 3,691 10,939 3,912 59,831 3,509 6,338 35,149 1,636 19,824 20,104 1,551 3,643 10,927 3,983 59,931 3,362 6,566 35,077 1,611 20.143 20,553 2,032 3,624 10,903 3,994 .............................................16 60.056 3,335 6,010 35,037 1,626 19,979 20,373 1,996 3,617 10,718 4,042 ............................................23 60.056 3,289 6,068 35,089 1,627 19,599 20,522 2,174 3,658 10,684 4,006 .............................................30 60,041 3,236 5,994 35,170 1,568 19,764 21,605 2,978 3,799 10,876 3,952 60,147 3,265 6,083 35,026 1,598 20,110 21,948 3.473 3,656 10,868 3,951 .............................................13 60,215 3,202 6,149 34,969 1,618 19,556 22,724 3,310 3,562 11,804 4,048 .............................................20 60,116 3,327 6,171 35,006 1,622 19,700 21,951 2,754 3,469 11,896 3,832 .............................................27 60,137 3,261 6,262 34,902 1,570 20,048 23,002 3,692 3,529 11,867 3,914 60,194 3,293 6,236 34,937 1,611 19,588 23,671 4,412 3,538 11,840 3,881 .............................................11 60,178 3,372 6,264 34,964 1,515 19,969 24,059 4,993 3,533 11,733 3,800 .............................................18 60,225 3,304 6,312 35,014 1,458 20,294 23,863 4,846 3,531 11,716 3,770 .............................................25 60,442 3,187 6,378 34,834 1,487 20,577 23,931 4,519 3,611 12,196 3,605 .............................................31 -254 -68 -25 117 -51 64 177 -20 6 -99 ..................................Dec. 31 4 For notes see p. A-82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974— Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other Total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants 3 other partici­ others pation4 Jan. 2 61,523 7,765 40,080 2,431 11,247 39,584 25,685 5,030 12,455 1,435 22,343 486,160 9........................ 61,606 7,793 40,232 2,400 11,181 32,447 22,606 4,681 12,222 1,439 20,622 467,661 61,067 7,459 40,099 2,374 11,135 34,685 25,158 4,529 12,341 1,440 20,328 470,717 23........................ 61,005 7,287 40,174 2,370 11,174 29,979 24,096 4,563 11,940 1,440 20,116 461,312 30........................ 61,395 7,472 40,394 2,393 11,136 30,161 23,753 4,501 11,950 1,443 20,724 462,192 Feb. 6........................ 61,795 7,637 40,520 2,454 11,184 31,677 21,644 4,016 11,891 1,429 21,188 463,252 13........................ 60,761 7,191 40,108 2,418 11,044 37,855 24,102 4,366 13,788 1,426 21,354 473,253 20........................ 61,338 7,250 40,356 2,434 11,298 38,014 23,935 4,467 12,924 1,429 21,605 473,564 27........................ 61,577 7,178 40,670 2,417 11,312 31,481 21,251 4,459 11,621 1,429 21,708 464,008 Mar. 6........................ 62,339 7,529 41,136 2,433 11,241 33,386 21,939 3,966 11,843 1,446 22,013 470,086 13........................ 62,876 7,822 41,123 2,532 11,399 32,843 23,145 4,341 11,417 1,449 22,270 470,278 62,301 7,600 40,901 2,541 11,259 32,900 22,992 4,300 12,389 1,465 22,357 471,943 27........................ 62,003 7,400 40,942 2,463 11,198 32,860 21,159 4,422 12,384 1,464 22,649 473,032 Apr. 3........................ 61,891 7,356 40,981 2,443 11,111 33,262 20,994 4,037 12,812 1,477 23,188 480,137 10........................ 61,908 7,510 40,881 2,438 11,079 32,794 21,499 4,221 12,695 1,480 22,903 480,725 17........................ 62,083 7,656 41,026 2,443 10,958 35,297 22,205 4,493 12,838 1,495 23,156 486,015 24........................ 61,900 7,544 41,028 2,417 10,911 29,510 21,945 4,543 11,747 1,519 23,285 475,078 May 1........................ 62,058 7,621 40,939 2,392 11,106 35,144 22,283 4,270 10,467 1,530 23,968 486,040 8........................ 62,417 7,680 41,393 2,385 10,959 30,498 22,897 4,131 11,239 1,557 23,758 479,429 15........................ 62,614 7,801 41,338 2,433 11,042 36,430 24,226 4,370 12,979 1,566 23,934 489,981 22........................ 61,783 7,490 40,995 2,384 10,914 31,397 19,902 4,453 12,865 1,574 23,493 479,353 29........................ 61,903 7,483 40,905 2,394 11,121 35,679 26,076 4,693 12,339 1,581 24,230 489,799 June 62,156 7,505 40,931 2,397 11,323 32,299 21,271 4,052 12,134 1,603 24,875 487,199 12........................ 63,509 8,007 41,405 2,508 11,589 32,446 24,666 4,494 10,526 1,586 25,001 488,774 62,937 7,511 41,332 2,519 11,575 32,243 21,214 4,566 11,076 1,602 24,336 485,606 63,127 7,384 41,311 2,525 11,907 31,909 22,880 4,684 10,994 1,694 25,084 489,024 July 3........................ 62,750 7,255 41,205 2,512 11,778 36,811 23,874 3,911 10,045 1,609 26,451 497,400 10........................ 62,631 7,048 41,428 2,385 11,770 31,247 23,899 4,558 10,041 1,607 26,516 491,842 62,359 6,968 41,350 2,377 11,664 33,180 25,660 4,515 11,149 1,602 26,091 495,606 24........................ 62,665 7,060 41,419 2,419 11,767 31,874 26,683 4,591 10,253 1,573 26,875 491,825 31........................ 62,365 6,978 41,144 2,493 11,750 35,192 20,314 4,489 11,466 1,594 28,772 499,608 Aug. 62,363 6,874 41,354 2,516 11,619 30,128 23,040 4,143 10,020 1,596 28,385 495,134 14........................ 62,004 6,770 41,152 2,542 11,540 31,066 23,656 4,474 9,909 1,598 28,319 494,383 21........................ 61,842 6,562 41,192 2,539 11,549 29,080 24,950 4,502 9,654 1,610 27,562 490,933 28........................ 61,768 6,508 41,072 2,541 11,647 30,011 20,482 4,721 10,624 1,639 27,894 492,613 Sept. 4........................ 62,024 6,665 41,188 2,539 11,632 37,602 25,671 4,350 11,563 1,626 29,230 507,740 11........................ 62,178 6,672 41,103 2,603 11,800 32,897 22,681 4,711 11,187 1,616 29,163 503,266 18........................ 61,943 6,601 41,043 2,557 11,742 31,479 21,833 4,709 10,955 1,628 28,678 498,917 25........................ 61,873 6,561 40,819 2,616 11,877 31,307 25,124 4,756 10,695 1,590 29,530 498,415 Oct. 2........................ 62,155 6,899 40,888 2,431 11,937 33,872 24,163 4,394 10,485 1,642 30,432 503,200 62,295 6,963 41,127 2,494 11,711 29,963 20,139 4,448 10,505 1,622 29,964 497,987 62,019 6,764 41,090 2,447 11,718 42,009 27,592 4,628 11,918 1,585 29,406 516,426 23........................ 61,371 6,324 40,818 2,456 11,773 33,616 24,425 4,752 10,703 1,600 29,654 498,900 30........................ 61,585 6,254 40,799 2,582 11,950 33,857 23,873 4,865 11,178 1,605 30,543 500,902 Nov. 6........................ 61,711 6,498 40,826 2,541 11,846 38,780 25,306 4,258 11,957 1,610 30,736 512,254 62,465 6,784 41,233 2,521 11,927 38,139 21,313 4,803 11,572 1,629 31,472 512,101 61,632 6,515 40,755 2,509 11,853 32,196 24,098 4,764 11,059 1,638 30,682 504,949 27........................ 61,754 6,422 40,874 2,539 11,919 37,868 24,798 4,482 11,260 1,599 31,893 511,790 Dec. 4........................ 61,755 6,560 40,622 2,606 11,967 33,788 19,483 4,525 11,809 1,604 32,585 509,927 11........................ 62,727 6,907 41,025 2,584 12,211 33,648 24,015 4,971 11,191 1,630 33,112 514,176 63,409 6,861 41,528 2,558 12,462 34,481 25,564 4,996 11,182 1,648 32,232 518,095 63,175 6,733 41,278 2,596 12,568 35,245 24,369 4,886 11,268 1,647 32,683 516,351 62,894 6,549 41,240 2,570 12,535 41,956 19,653 5,410 16,445 1,699 34,067 529,459 Dec. 31........................ -384 21 -193 -158 -54 113 29 6 -10 -15 -395 -1,414 For notes see p. A-82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ WEEKLY REPORTING BANKS A 81 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974— Continued (In millions of dollars) Deposits Demand Time and savings1 Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc.2 cial checks ings sions banks 184,565128,210 7,352 7,161 25,286 804 1,156 4,978 9,618 189,643 57,087 95,393 22,840 5,554 8,311 2 163,213115,363 6,638 3,134 23,945 893 1 ,077 4,461 7,702 190,963 57,064 96,517 23,458 5,361 8,123 . 9 165,559117,004 6,463 3,874 23,598 805 1,062 4,338 8,415 191,406 56,956 96,967 23,510 5,385 8,102 16 156,027109,352 6,032 4,465 22,783 668 994 4,155 7,578 192,741 56,917 98,297 23,607 5,291 8,081 23 158,014109,058 6,238 5,688 22,815 689 1 ,190 4,640 7,696 193,136 56,802 98,890 23,552 5,153 8,121 30 157,344108,003 6,424 4,700 23,545 769 1 ,552 4,160 8,191 192,627 56,911 98,488 23,521 5,136 7,988........Feb. 6 163,592111,108 6,370 3,466 26,603 655 1,139 4,351 9,900 192,602 56,955 98,607 23,362 4,971 8,106 13 162,933113,261 6,594 2,610 25,572 685 1,313 4,831 8,067 192,450 57,055 98,446 23,349 4,898 8,073 20 155,685109,164 6,011 3,242 22,786 594 1,224 4,481 8,183 192,829 57,145 99,016 23,460 4,654 7,906 27 157,794110,728 6,470 2,366 23,742 694 1,102 4,523 8,169 193,066 57,418 98,930 23,505 4,704 7,890 6 156,244111,911 6,057 1,940 22,313 732 1,059 4,492 7,740 194,079 57,652 99,899 23,524 4,724 7,648 13 158,2901(0,478 6,095 4,044 23,365 584 1,067 4,523 8,134 194,171 57,905 99,788 23,531 4,770 7,541 20 158,612111 ,152 6,521 3,440 22,976 610 1,221 4,678 8,014 195,888 58,250101,026 23,493 4,886 7,567 27 163,147113,210 6,064 3,714 24,731 838 1,327 4,701 8,562 197,888 58,485102,517 23,578 5,114 7,480 3 161,834113,146 6,064 1,714 24,580 779 2,203 4,670 8,678 200,141 58,394104,080 23,986 5,330 7,651 10 167,455117,111 6,076 4,796 24,570 739 1,671 4,422 8,070 200,935 58,036103,904 24,733 5,490 8,105 17 155,738110,523 5,890 3,573 22,294 651 1,479 4,669 6,659 203,065 57,923105,641 24,993 5,676 8,152 24 166,949114,478 7,167 7,347 22,445 774 1,449 4,692 8,597 203,689 57,827106,218 24,921 5,881 8,201 1 156,817108,537 6,201 5,221 22,968 700 1,368 4,777 7,045 205,600 57,923107,799 25,053 6,102 8,077 8 164,390113,946 7,366 3,688 24,828 675 1,310 4,786 7,791 206,596 57,865108,759 25,053 6,123 8,176 15 155,615109,023 5,883 2,445 23,238 659 1,075 4,897 8,395 208,781 57,863110,321 25,397 6,305 8,262 22 161,068112,819 6,042 3,591 25,044 657 1,114 4,862 6,939 209,557 57,841111,057 25,466 6,570 7,927 29 157,882111,477 6,024 2,558 22,237 687 1,899 5,056 7,944 209,452 57,926111,167 24,995 6,514 8,065 5 156,244113,717 5,790 1,711 21,529 671 1,431 4,729 6,666 209,894 57,853111,595 24,635 6,630 8,345 12 159,298112,051 5,909 5,903 22,127 629 1,360 4,682 6,637 209,423 57,780111,109 24,410 6,783 8,460 19 158,475112,202 6,733 4,289 21,748 651 1,220 4,759 6,873 210,558 57,886111,888 24,364 6,947 8,542 26 164,144114,626 6,409 5,501 23,426 935 1,246 4,970 7,031 211,529 58,114112,242 24,232 7,076 8,933........July 3 157,390112,955 5,971 2,545 22,379 859 1 ,193 5,469 6,019 211,516 58,060112,000 24,402 7,047 9,016 10 158,172114,364 5,892 1,685 22,355 745 1,269 5,143 6,719 213,566 57,983113,640 24,413 7,389 9,001 17 153,925111,748 5,666 1,740 20,734 637 1,104 5,088 7,208 215,431 57,852114,841 24,576 7,535 9,402 .24 161,763115,119 6,272 1,825 23,091 733 1,875 5,431 7,417 216,232 57,602115,673 24,450 7,346 9,898 31 152,616109,945 5,793 1,408 21,626 712 1,378 5,358 6,396 217,092 57,549116,447 24,311 7,203 10,115 7 153,829113,214 5,960 1,143 20,692 651 1,116 5,247 5,806 217,996 57,419117,362 24,249 7,201 10,220 14 150,969110,239 5,555 2,847 20,471 582 1,171 4,824 5,280 218,809 57,280118,024 24,316 7,265 10,313 21 153,287111,840 5,586 1,732 21,251 612 1,172 4,861 6,233 219,453 57,079118,853 24,266 7,332 10,240 .28 163,679117,574 6,094 1,343 24,974 698 1,149 5,178 6,669 219,454 57,059118,780 24,240 7,445 10,311 4 158,643115,076 5,799 1,735 22,815 635 1,442 5,079 6,062 219,904 56,960119,273 24,334 7,417 10,242 11 158,107113,850 5,609 4,579 21,342 603 1,211 4,966 5,947 219,282 56,881118,662 24,253 7,528 10,290 .18 156,348111,863 6,300 4,331 20,384 572 1,302 5,138 6,458 220,289 56,876119,135 24,412 7,736 10,407 25 160,987115,075 6,164 3,195 22,460 854 1,166 5,199 6,874 221,496 57,220119,472 24,640 7,620 10,787 2 154,150111,950 5,877 1,074 21,739 826 1,155 5,281 6,248 221,122 57,380118,792 24,999 7,531 10,659 . 9 170,097120,145 5,984 1,850 26,780 773 1,283 5,601 7,681 221,182 57,436118,927 24,970 7,460 10,630 16 156,319113,339 5,568 1,030 24,076 691 1,095 4,961 5,559 221,596 57,462119,376 24,945 7,259 10,742 23 159,896115,026 6,106 1,155 23,832 679 1,247 4,635 7,216 219,890 57,408118,238 24,540 7,217 10,627 ,30 166,316117,445 5,942 2,225 26,133 807 1,174 4,949 7,641 219,310 57,586117,755 24,000 7,230 10,859 6 164,764120,705 5,931 1,473 22,779 723 1,250 5,131 6,772 219,194 57,661117,520 23,914 7,194 11,051 13 158,320114,800 6,179 2,260 21,752 571 1,072 5,340 6,346 218,280 57,748116,822 23,812 7,142 10,868 20 165,295118,647 6,046 1,852 24,901 573 1,055 5,114 7,107 218,965 57,809117,626 23,715 7,251 10,600 ,27 164,190118,105 6,071 2,213 24,565 659 1,245 5,301 6,031 219,316 57,920117,923 23,713 7,369 10,458 4 162,876118,140 6,181 1,496 22,116 738 1,313 5,391 7,501 221,705 57,890119,284 24,012 7,702 10,843 11 166,790119,151 6,204 3,619 23,329 610 1,529 5,377 6,971 224,104 57,916120,248 24,785 7,774 11,346 ,18 163,663119,774 6,331 2,327 22,738 655 1,273 5,425 5,140 225,947 57,947121,044 25,236 8,098 11,631 ,25 185,215129,449 7,039 1,471 31,807 932 1,838 6,104 6,575 228,045 58,485122,201 25,434 8,158 11,761 31 364 150 46 33 -8 -1 2 130j 12 86 -44 29 -24 1 27 31 < For notes see p. A-82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 WEEKLY REPORTING BANKS □ APRIL 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974—Continued (In millions of dollars) Bo f r r r o o m w — ings Re fo se r— rves Memoranda Large negotiable Wednesday c f e h F p u e t a u r e n c a s d r . d e l ­ 7 ­ s d B F a . n R k . s Others l O i e t a i t t b e c h s . i e l , 8 i r ­ Loans S i e t c ie u s r­ c c T a o a o p u c t i n a ­ ta t l s l j ( u T l g o s a r o t a o d e t n s a ­ d s s l ) 9 j ( u i m T l n g s o a a v r o t e n a o d e e n t n d s d a ­ s t s s t l s 9 ) ­ j d u e m s D p a t a e o d e n d s ­ ­ d i 1 t s o T a o n t d a i l n s c a l t v u i i m d I n s e g e s t d s o u C e d in D d e p ’ t s i o m I s s e i s t t u s o 1 e 1 d b f l t b G o i i r t a e a h a r r t s b e n n o e o i i k c i o s g l r i s h s f n ­ ­ IPC’s others es Jan. 2................ 51,993 754 5,154 17324 4,702 65 31,960 270,545 357,529112,534 64,626 43,219 21,407 1 ,158 9................. 52,656 1 ,941 5,276 16837 4,886 69 31,820 267,890 355,452103,687 65,578 44,090 21,488 1 ,322 16................. 53,193 1 ,083 5,501 17189 4,906 74 31,806 267,011 354,149103,402 65,637 44,337 21,300 2,040 23................ 51 ,138 2,408 5,231 16863 4,919 74 31,911 265,271 352,506 98,800 66,458 45,275 21,183 2,004 30................ 50,708 1 ,316 5,327 16787 4,927 83 31 ,894 264,401 351,487 99,350 66,936 45,741 21,195 1 ,686 Feb. 6................ 52,448 592 5,508 17564 4,968 78 32,123 266,139 353,461 97,422 66,215 45,058 21 ,157 1 ,659 13................ 54,016 2,262 5,376 18211 4,966 73 32,155 265,675 351,672 95,668 66,157 45,076 21,081 2,218 20................ 56,828 840 5,078 18301 4,964 73 32,097 265,520 352,474 96,737 65,680 44,752 20,928 1 ,735 27................ 53,885 940 5,353 18213 4,976 78 32,049 266,863 353,769 98,176 65,753 45,056 20,697 1,689 Mar. 6................ 57,583 671 5,390 18093 5,008 79 32,402 268,396 356,730 98,300 65,877 45,018 20,859 1,610 13................ 56,802 1 ,362 5,910 18344 5,008 79 32,450 268,595 357,201 99,148 66,523 45,791 20,732 2,274 20................ 55,240 1 ,910 6,150 18709 5,000 74 32,399 271,120 358,290 97,981 66,261 45,454 20,807 2,459 27................ 53,527 1 ,700 6,357 19433 4,997 74 32,444 273,873 360,705 99,336 67,815 46,825 20,990 2,947 Apr. 3................ 54,544 823 6,301 19604 4,994 74 32,762 278,037 365,267101,440 69,479 48,173 21,306 2,717 10................ 54,569 1 ,017 6,250 19091 4,991 74 32,758 278,669 366,271102,746 71,540 49,788 21,752 2,908 17................ 53,303 939 6,060 19597 4,995 73 32,658 281,706 368,573102,792 71 ,753 49,589 22,164 3,020 24................ 51,234 1,728 6,111 19490 4,992 66 32,654 279,738 365,057100,361 73,600 51,235 22,365 2,495 May 1................ 50,142 1,366 6,011 19856 5,039 66 32,922 284,255 369,273102,013 74,288 51,633 22,655 2,709 8................ 51,132 1,487 6,474 19841 5,032 66 32,980 282,565 367,829 98,130 75,979 52,954 23,025 3,025 15................ 50,733 3,004 6,551 20714 5,020 65 32,908 283,602 368,478 99,444 76,879 53,774 23,105 3,080 22................ 47,583 2,349 6,509 20533 5,035 65 32,883 284,949 368,918 98,535 78,837 55,179 23,658 3,418 29................ 50,241 3,968 6,170 20880 5,038 65 32,812 283,987 367,740 96,754 79,583 55,873 23,710 2,988 June 5................ 51,998 2,092 6,319 21266 5,052 66 33,072 287,026 371,498100,788 79,160 55,641 23,519 2,813 12................ 54,929 2,658 5,970 20867 5,061 61 33,090 286,532 372,164100,558 79,647 55,969 23,678 2,410 19................ 49,474 1 ,988 6,267 21029 5,060 61 33,006 288,761 373,499 99,025 79,154 55,347 23,807 2,503 26................ 51,325 2,341 6,358 21863 5,065 61 32,978 289,639 373,750100,529 80,174 55,981 24,193 3,388 July 3................ 53,465 2,361 6,100 21448 5,040 62 33,251 292,796 376,420 98,406 80,848 56,228 24,620 3,177 10................ 55,108 1,745 6,086 21671 5,033 62 33,231 292,787 375,768101,219 81,129 56,190 24,939 2,804 17................ 52,608 3,417 6,119 23524 5,035 62 33,103 293,749 376,290100,952 82,973 57,542 25,431 4,583 24................ 49,449 4,780 6,137 23910 5,030 62 33,101 292,360 374,969 99,577 84,791 58,605 26,186 4,711 31................. 50,275 2,781 5,869 24161 5,068 62 33,397 297,160 380,439101,655 85,491 59,109 26,382 3,314 Aug. 7................. 54,516 2,286 6,112 23998 5,066 62 33,386 296,752 380,399 99,454 86,033 59,692 26,341 3,499 14................ 52,459 2,268 6,010 23334 5,069 62 33,356 294,907 378,337100,928 86,916 60,628 26,288 2,910 21................ 50,284 2,375 5,923 24145 5,074 62 33,292 294,637 377,455 98,571 87,848 61,062 26,786 3,694 28................ 48,646 2,632 5,866 24333 5,086 62 33,248 298,619 381,517100,293 88,484 61,747 26,737 3,012 Sep. 4................ 53,030 2,572 5,935 24365 5,116 62 33,527 297,110 380,402 99,760 88,475 61,506 26,969 3,002 11................. 53,265 1,927 5,988 24760 5,198 62 33,519 299,484 383,444101,196 88,981 62,078 26,903 3,334 18................ 49,413 2,569 6,060 24809 5,148 62 33,467 300,885 383,704100,707 88,209 61,284 26,925 3,449 25................ 47,705 4,433 5,779 25236 5,144 62 33,419 297,910 379,852100,326 89,116 61,712 27,404 2,918 Oct. 2................ 50,055 2,183 5,892 23610 5,173 64 33,740 298,866 380,787101,460 89,501 61,808 27,693 2,372 9................ 51,742 311 6,022 25696 5,145 64 33,735 301,381 383,780101,374 88,845 61,173 27,672 2,188 16................ 53,900 1,278 5,544 25526 5,148 64 33,687 298,631 381,203 99,458 88,671 61,246 27,425 3,140 23................ 48,912 1,907 5,564 25731 5,143 64 33,664 296,530 378,274 97,597 88,975 61,655 27,320 2,709 30................ 49,896 1,285 5,448 25604 5,143 64 33,676 296,656 378,763101,052 87,673 60,619 27,054 2,131 Nov. 55,887 476 5,176 25843 5,193 64 33,989 298,020 381,336 99,178 87,088 60,163 26,925 1,970 13................ 57,545 311 5,054 26028 5,190 63 33,952 299,581 383,994102,373 87,146 59,938 27,208 1,897 20................ 55,196 2,243 4,983 26786 5,196 63 33,882 298,696 383,052102,112 86,298 59,371 26,927 2,319 27................ 55,122 1,456 4,892 26989 5,209 62 33,800 298,518 382,223100,674 87,351 60,352 26,999 2,661 Dec. 4................ 53,828 122 4,896 28187 5,234 78 34,076 302,943 387,700103,624 88,021 60,834 27,187 3,353 11................ 56,532 926 4,886 27836 5,222 62 34,131 300,561 386,959105,616 89,805 62,049 27,756 3,245 18................ 54,315 1,093 4,616 27866 5,196 66 34,049 302,589 390,057105,361 90,996 62,833 28,163 3,751 25................ 53,992 207 4,557 28656 5,144 62 34,123 301,804 388,842103,353 92,359 63,531 28,828 3,997 31................ 44,303 152 4,268 27981 5,273 60 34,162 304,318 391,143109,981 92,830 64,264 28,566 3,553 ^ Dec. 31................ -124 55-1,797 -31 33 -891 -1,211 226 38 23 15 ► These amounts represent accumulated adjustments originally made 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. to offset the cumulative effect of mergers. 7 Includes securities sold under agreements to repurchase. 8 Includes minority interest in consolidated subsidiaries. 1 Includes securities purchased under agreements to resell. 9 Exclusive of loans and Federal funds transactions with domestic com­ 2 Includes official institutions and so forth. mercial banks. 3 Includes short-term notes and bills. iOAll demand deposits except U.S. Govt, and domestic commercial 4 Federal agencies only. banks, less cash items in process of collection. 5 Includes corporate stock. 11 Certificates of deposit issued in denominations of $100,000 or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1975 □ BUSINESS LOANS OF BANKS, 1974 A 83 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) 1974—Wednesday dates Industry Jan. Jan. Jan. Jan. Jan. Feb. Feb. .Feb. Feb. Mar. Mar. Mar. Mar. 2 9 16 23 30 6 13 20 27 6 13 20 27 Durable goods manufacturing: Primary metals........................ 1,786 1,829 1,839 1,840 1,867 1,835 1,787 1 ,785 1 ,798 1 ,809 1,828 1,880 1,888 Machinery............................. 6,808 6,724 6,844 6,628 6,724 6,768 6,845 6,781 6,852 7,046 7,186 7,460 7,740 Transportation equipment........... 2,407 2,439 2,501 2,516 2,490 2,604 2,591 2,675 2,661 2,688 2,735 2,793 2,878 Other fabricated metal products . .. 2,337 2,350 2,383 2,350 2,344 2,303 2,325 2,363 2,356 2,382 2,448 2,566 2,600 Other durable goods................. 3,722 3,722 3,715 3,671 3,621 3,610 3,660 3,732 3,736 3,793 3,887 3,947 4,052 Nondurable goods manufacturing: Food, liquor, and tobacco........... 4,090 4,082 4,057 4,057 3,954 3,990 3,941 3,943 3,982 4,059 4,095 4,258 4,281 Textiles, apparel, and leather....... 3,223 3,278 3,279 3,242 3,210 3.282 3,344 3,416 3,444 3,538 3,638 3,750 3,789 Petroleum refining.................... 1,256 1,318 1,294 1,275 1,277 1 ,197 1,200 1 ,200 1,204 1,200 1 ,229 1,215 1,216 Chemicals and rubber................ 2,462 2,392 2,426 2,457 2,445 2,507 2,544 2,509 2,499 2,568 2,632 2,705 2,771 Other nondurable goods............. 2,143 2,160 2,148 2,163 2,106 2, 125 2,108 2,147 2, 133 2,133 2,163 2,230 2,261 Mining, including crude petroleum and natural gas....................... 3,941 3.917 3,906 3,869 4,027 4,036 4,087 4,101 4,067 4,095 4,081 4,117 4,116 Trade: Commodity dealers............ 1,858 1,919 2,037 2,151 2,258 2,322 2,337 2,273 2,307 2,206 2,230 2,244 2,199 Other wholesale................ 5,504 5,438 5,417 5,438 5,444 5,478 5,456 5,509 5,623 5.601 5,651 5,841 5,880 Retail............................ 5,892 5,685 5,886 5,912 5,811 5,839 5,988 6,044 6,185 6,393 6,340 6,527 6,615 Transportation.......................... 6,040 6,118 6,050 5,989 5,966 5,937 5,931 5,934 5,905 5,986 5,969 6,045 6,069 Communication......................... 2,265 2,234 2,192 2,150 2,142 2,196 2,172 2,138 2,102 2,099 2,103 2,184 2,175 Other public utilities................... 6,050 6,093 5,908 5,896 5,711 5,710 5,546 5,464 5,440 5,378 5,360 5,412 5,586 Construction............................ 5,483 5,475 5,415 5,414 5,434 5.379 5,371 5,411 5,425 5,395 5,432 5,510 5,524 Services................................... 11,188 11,121 10,911 10,898 10,806 10,870 10,911 10,863 10,934 11,017 11,057 11,232 11,245 All other domestic loans............... 8,774 8,456 8,560 8,320 8,376 8,308 8,348 8,158 8,281 8,577 8,578 8,662 8,812 Bankers acceptances.................... 1,269 1,264 1,183 1,179 1,249 1,192 1.129 1,121 1,250 1 .244 1,348 1,287 1,336 Foreign commercial and industrial loans................................. 4,092 4,058 4,165 4,182 4,159 4,139 4,147 4,037 4,017 3,986 4,070 4,089 4,178 Total classified loans................... 92,590 92,072 92,116 91,597 91,421 91.627 91,768 91,604 92,201 93,193 94,060 95,954 97,211 Total commercial and industrial loans of large commercial banks....... 111,047110,467110,484109,906109,724109,986110,149110,142110,707111,725112,702114,739115,953 1974—Wednesday dates Industry Apr. Apr. Apr. Apr. May May May May May June June June June 3 10 17 24 1 8 15 22 29 5 12 19 26 Durable goods manufacturing: Primary metals....................... 1 ,920 1 ,934 1 ,915 1,909 1 ,896 1 ,887 1 ,916 1 ,920 1 ,894 1 ,853 1 ,850 1 ,856 1 ,865 Machinery............................ 8,024 8,196 8,390 8,149 8,364 8,220 8,317 8,190 8,156 8,208 8,378 8,575 8,519 Transportation equipment.......... 2,914 2,966 3,055 3,053 3,063 3,161 3,141 3,108 2,997 3,016 3,071 3,155 3,107 Other fabricated metal products. .. 2,616 2,681 2,724 2,705 2,742 2,801 2,861 2,803 2,777 2,775 2,791 2,821 2,836 Other durable goods................ 4,193 4,271 4,325 4,326 4,372 4,450 4,462 4,413 4,452 4,472 4,503 4,526 4,612 Nondurable goods manufacturing: Food, liquor, and tobacco.......... 4,363 4,325 4,368 4,326 4,279 4,322 4,295 4,216 4,059 3,988 3,875 3,940 3,937 Textiles, apparel, and leather....... 3,771 3,879 3,918 3,911 3,868 3,957 3,989 3,934 3,913 3,953 4,024 4,075 4,128 Petroleum refining................... 1 ,370 1,225 1 ,223 1 ,208 1,218 1 ,187 1,192 1,204 1 ,495 1 ,337 1 ,312 1 ,279 1,283 Chemicals and rubber............... 2,893 2,975 3,102 2,998 3,048 3,083 3,119 3,071 3,006 3,059 3,114 3,162 3,126 Other nondurable goods............ 2,308 2,305 2,355 2,357 2,360 2,391 2,385 2,371 2,363 2,387 2,406 2,457 2,483 Mining, including crude petroleum and natural gas....................... 4,267 4,308 4,239 4,262 4,202 4,165 4,217 4,211 4,168 4,132 4,152 4,196 4,191 Trade: Commodity dealers............ 2,170 2,126 2,007 1 ,962 1,902 1 ,776 1,767 1 ,718 1 ,657 1,565 1,565 1,535 1,569 Other wholesale................ 5,901 5,959 5,997 6,119 6,169 6,159 6,103 6,061 6,112 6,057 6,075 6,199 6,244 Retail............................ 6,873 6,869 7,018 6,930 7,115 6,985 6,994 7,012 7,049 6,974 6,981 7,161 7,172 6,087 6,056 6,094 6,065 6,087 6,034 6,046 6,086 6,134 6,130 6,096 6,110 6,103 Communication......................... 2,380 2,389 2,483 2,428 2,465 2,422 2,465 2,508 2,530 2,514 2,444 2,530 2,501 Other public utilities................... 5,886 5,886 6,029 5,976 6,241 6,289 6,257 6,381 6,373 6,369 6,505 6,610 6,921 Construction............................ 5,564 5,586 5,651 5,661 5,730 5,767 5,834 5,932 5,979 5,987 6,026 6,103 6,147 Service................................... 11,350 11,388 11,532 11,541 11,608 11,548 11,521 11,520 11,542 11,557 11,607 11,658 11,650 All other domestic loans............... 8,941 8,829 9,001 8,856 9,273 9,267 9,144 9,002 8,994 9,083 9,186 9,332 9,388 1 ,265 1,141 1,260 1,292 1,458 1,482 1,380 1,376 1,416 1,457 1 ,472 1 ,488 1,717 Foreign commercial and industrial loans................................ 4,299 4,345 4,371 4,346 4,381 4,476 4,527 4,468 4,478 4,600 4,671 4,686 4,684 Total classified loans................... 99,355 99,639101,057100,380101,841101,829101,932101,505101,544101,473102,104103,454104,183 Total commercial and industrial loans of large commercial banks....... 118,477118,926120,453119,795121,332121,444121,503121,041120,913120,766121,519123,004123,612 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 BUSINESS LOANS OF BANKS, 1974 □ APRIL 1975 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) 1974—Wednesday dates Industry July July July July July Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. 3 10 17 24 31 7 14 21 28 4 11 18 25 Durable goods manufacturing: Primary metals....................... 1 ,829 1 ,853 1 ,882 1 ,874 1 ,866 1 ,878 1 ,908 1 ,898 1 ,871 1 ,880 1 ,933 1 ,943 1 ,928 Machinery............................ 8,490 8,581 8,656 8,668 8,503 8,544 8,645 8,672 8,545 8,606 8,750 9,014 8,868 Transportation equipment.......... 3,183 3,213 3,159 3,189 3,197 3,254 3,260 3,324 3,367 3,392 3,412 3,438 3,447 Other fabricated metal products__ 2,897 2,923 2,991 2,975 2,959 2,983 2,996 2,980 2,995 3,036 3,063 3,111 3,089 Other durable goods................. 4,732 4,812 4,785 4,759 4,795 4,883 4,946 4,948 4,985 5,027 5,111 5,146 5,124 Nondurable goods manufacturing: Food, liquor, and tobacco......... 3,965 4,023 4,048 4,041 4,025 4,065 4,109 4,195 4,200 4,295 4,329 4,399 4,437 Textiles, apparel, and leather....... 4,209 4,196 4,185 4,188 4,116 4,273 4,311 4,327 4,357 4,374 4,352 4,328 4,235 Petroleum refining................... 1 ,443 1 ,484 1 ,669 1 ,692 1 ,832 1 ,787 1 ,815 1 ,810 1 ,745 1 ,787 1 ,788 1 ,760 1 ,777 Chemicals and rubber............... 3,211 3,252 3,277 3,204 3,201 3,309 3,299 3,305 3,309 3,357 3,388 3,447 3,437 Other nondurable goods............ 2,511 2,519 2,532 2,535 2,513 2,539 2,560 2,579 2,575 2,599 2,614 2,665 2,641 Mining, including crude petroleum and natural gas....................... 4,204 4,222 4,330 4,370 4,382 4,403 4,376 4,390 4,432 4,497 4,489 4,503 4,481 Trade: Commodity dealers............ 1 ,514 1 ,457 1 ,434 1 ,445 1 ,491 1 ,476 1 ,436 1 ,451 1 ,459 1 ,426 1 ,400 1 ,388 1 ,374 Other wholesale................ 6,392 6,360 6,354 6,320 6,392 6,408 6,386 6,372 6,334 6,308 6,280 6,320 6,379 Retail............................ 7,154 7,071 7,242 7,199 7,264 7,134 7,127 7,194 6,996 7,061 6,936 6,965 6,953 Transportation.......................... 6,131 6,122 6,008 6,043 6,024 6,012 6,109 6,043 6,084 6,033 6,038 6,116 6,125 Communication......................... 2,637 2,584 2,563 2,397 2,419 2,407 2,392 2,365 2,383 2,372 2,371 2,388 2,409 Other public utilities................... 7,395 7,379 7,635 7,577 7,666 7,641 7,505 7,594 7,611 7,804 7,847 7,875 8,009 Construction............................ 6,203 6,195 6,217 6,233 6,235 6,257 6,305 6,320 6,390 6,343 6,371 6,422 6,378 Services.................................. 11,683 11,651 11,726 11 ,759 11,736 11 ,798 11,775 11,799 11,771 11,821 11,823 11,836 11 ,783 All other domestic loans............... 9,513 9,513 9,552 9,584 9,490 9,469 9,360 9,457 9,661 9,731 9,787 9,739 9,745 Bankers acceptances.................... 2,012 2,081 1 ,870 I ,560 1 ,490 1 ,270 1 ,326 1 ,320 1 ,352 1 ,316 1 ,369 1 ,287 1 ,352 Foreign commercial and industrial loans................................ 4,839 4,804 4,887 4,950 4,857 4,882 4,796 4,718 4,527 4,548 4,594 4,587 4,476 Total classified loans................... 106,147106,295107,002106,562106,453106,672106,742107,061106,949107,613108,045108,677108,447 Total commercial and industrial loans of large commercial banks.......... 125,614125,813126,581126,158126,143126,427126,521126,880126,771127,466127,978128,668128,407 1974—Wednesday dates Industry Oct. Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. 2 9 16 23 30 6 13 20 27 4 11 18 25 31 (Tues.) Durable goods mfg.: Primary metals............. 1 ,909 1 ,938 1 ,941 1 ,921 1 ,871 1 ,872 1 ,877 1 ,862 1 ,935 1 ,931 1 ,916 1 ,925 1 ,973 2,005 Machinery.................. 8,892 8,835 8,885 8,780 8,679 8,719 8,813 8,749 8,824 8,872 9,063 9,187 9,131 8,741 Trans, equipment.......... 3,444 3,465 3,451 3,460 3,519 3,470 3,473 3,454 3,479 3,516 3,664 3,813 3,788 3,812 Other fabricated metal products.................. 3,079 3,051 3,068 3,042 3,029 3,010 2,997 2,936 2,925 2,952 2,935 2,975 2,922 2,911 Other durable goods....... 5,140 5,184 5,160 5,120 5,061 5,048 5,122 5,029 5,035 5,013 5,034 4,966 4,953 4,859 Nondurable goods mfg.: Food, liquor, and tobacco. 4,316 4,306 4,401 4,461 4,429 4,469 4,436 4,502 4,564 4,597 4,617 4,773 4,877 4,921 Textiles, apparel, and leather.................... 4,212 4,204 4,196 4,094 3,988 4,017 4,023 3,925 3,846 3,799 3,750 3,712 3,652 3,510 Petroleum refining......... 1 ,764 1,809 1 ,885 1 ,879 1 ,900 1 ,891 1 ,876 1 ,889 1 ,932 2,005 1,976 1 ,997 2,037 2,250 Chemicals and rubber..... 3,507 3,489 3,486 3,350 3,390 3,446 3,431 3,364 3,290 3,266 3,318 3,457 3,426 3,382 Other nondurable goods.. . 2,610 2,563 2,544 2,532 2,497 2,505 2,501 2,475 2,451 2,454 2,495 2,558 2,557 2,506 Mining, incl. crude petroleum and natural gas............ 4,549 4,455 4,554 4,565 4,636 4,646 4,707 4,740 4,802 4,865 4,893 4,912 4,845 5,037 Trade: Commodity dealers. . 1 ,374 1 ,458 1 ,579 1 ,618 1 ,763 I ,888 1 ,999 2,177 2,135 2,101 2,100 2,037 1 ,954 2,077 Other wholesale..... 6,387 6,394 6,462 6,389 6,410 6,426 6,461 6,476 6,565 6,522 6,491 6,493 6,621 6,728 Retail................. 7,081 6,945 7,065 7,001 7,149 7,247 7,169 7,183 7,305 7,169 7,230 7,208 6,894 6,707 Transportation................ 6,220 6,130 6,099 6,095 6,108 6,130 6,127 6,079 6,088 6,090 6,139 6,152 6,233 6,386 Communication.............. 2,477 2,469 2,380 2,313 2,198 2,272 2,231 2,234 2,220 2,212 2,223 2,283 2,269 2,499 Other public utilities......... 8,078 8,046 7,819 7,811 7,725 8,078 7,995 8,077 8,045 8,213 8,224 8,252 8,383 8,618 Construction.................. 6,394 6,350 6,360 6,321 6,348 6,349 6,326 6,344 6,399 6,339 6,348 6,289 6,220 6,102 Services........................ 11,816 11,799 11 ,770 11,737 11,809 11,795 11,803 11,888 11,810 11,892 11,898 11,929 11,948 11,954 All other domestic loans .... 9,802 9,758 10,071 10,047 9,997 10,145 9,996 9,887 9,969 10,131 9,995 9,967 9,846 10,132 Bankers acceptances......... 1,387 1 ,496 1,497 1,452 1 ,453 1 ,441 1 ,478 1 ,494 1,642 1 ,759 1,643 1 ,586 1,635 1,661 Foreign coml. and ind. loans. 4,405 4,401 4,374 4,400 4,384 4,373 4,249 4,279 4,268 4,215 4,226 4,214 4,144 4,227 Total classified loans......... 108,843108,545109,047108,388108,343109,237109,090109,043109,529109,913110,178110,685110,308111,025 Total coml. and ind. loans of large coml. banks......... 128,827128,529129,032128,323128,328129,300129,147129,208129,798130,278130,430131,527131,386131,875 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

APRIL 1975 □ BUSINESS LOANS OF BANKS, 1974 A 85 “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) 1974 Industry Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 30 27 27 24 29 26 31 28 25 30 27 31 (Tues.) Durable goods manufacturing: Primary metals.................................. 1,092 1,046 1,064 1,083 1,111 1,105 1,116 1,104 1,133 1,107 1,176 1,210 Machinery....................................... 2,950 3,037 3,114 3,145 3,213 3,286 3,572 3,789 3,896 3,970 4,049 4,145 Transportation equipment.................... 1,324 1,367 1,365 1,423 1,424 1,410 1,373 1,419 1,535 1,570 1,586 1,673 Other fabricated metal products............. 938 911 911 934 960 954 996 1,000 1,066 1,093 1,113 1,197 Other durable goods........................... 1,737 1,837 1,915 1,972 2,012 2,107 2,169 2,198 2,268 2,339 2,361 2,391 Nondurable goods manufacturing: Food, liquor, and tobacco.................... 1,514 1,527 1,529 1,533 1,584 1,571 1,604 1,604 1,649 1,661 1,674 1,763 Textiles, apparel, and leather................. 1,032 1,043 1,089 1,147 1,120 1,128 1,182 1,171 1,151 1,187 1,179 1,145 Petroleum refining.............................. 920 901 945 934 954 963 996 1,048 1,097 1,208 1,272 1,518 Chemicals and rubber.......................... 1,570 1,569 1,603 1,690 1,686 1,737 1,760 1,790 1,778 1,820 1,818 1,878 Other nondurable goods....................... 1,069 1,080 1,139 1,145 1,157 1,171 1,149 1,189 1,204 1,187 1,170 1,235 Mining, including crude petroleum and natural gas............................................. 3,153 3,203 3,245 3,284 3,172 3,130 3,197 3,319 3,339 3,468 3,620 3,701 Trade: Commodity dealers............................ 137 129 140 144 144 141 155 166 139 157 171 155 Other wholesale................................. 1,265 1,315 1,323 1,335 1,404 1,406 1,446 1,419 1,449 1,488 1,431 1,492 Retail............................................ 2,249 2,376 2,480 2,543 2,514 2,428 2,512 2,529 2,527 2,578 2,602 2,594 Transportation..................................... 4,327 4,311 4,417 4,414 4,474 4,425 4,353 4,322 4,349 4,370 4,379 4,550 Communication................................... 947 940 966 978 1,033 1,030 1,030 1,021 1,029 1,047 1,076 1,082 Other public utilities.............................. 3,298 3,245 3,154 3,196 3,356 3,443 3,539 3,664 3,672 3,810 3,987 3,963 Construction....................................... 1,943 1,940 1,898 1,908 1,984 2,130 2,183 2,218 2,272 2,237 2,281 2,294 S ervices............................................. 4,937 5,004 5,076 5,223 5,263 5,273 5,275 5,301 5,350 5,340 5,417 5,532 All other domestic loans......................... 2,692 2,384 2,808 2,935 2,945 3,017 3,058 3,074 3,122 3,215 3,255 3,224 F oreign commercial and industrial loans...... 2,469 2,321 2,350 2,369 2,396 2,548 2,565 2,500 2,401 2,487 2,473 2,457 Total loans......................................... 41,563 41,486 42,531 43,335 43,906 44,403 45,230 45,845 46,426 47,339 48,090 49,199 Note.—Figures are for the last Wednesday of the month, except as noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board o f Governors o f the Federal Reserve System Arthur F. Burns, Chairman George W. M itchell, Vice Chairman John E. Sheehan Jeffrey M. Bucher Robert C. Holland Henry C. W allich Philip E. Coldwell OFFICE OF MANAGING DIRECTOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR FOR OPERATIONS Thomas J. O’C onnell, Counsel to the RESEARCH AND ECONOMIC POLICY Chairman * J L o e h v D n o i n M r e H c . t . D o r G en a k r l a e b r e , d D ia e n p , u t A y s M si a st n a a n g t i n M g a D na ir g e i c n t g o r J R J o o o s h b e n p e h r S t . R S R . o i C l p o p o m e y y o n , n e, , A A A ss s d i s v s i t i s a s t e a n r n t t t t o o t o t t h h t e h e e B B B o o o a a a r r d d rd J S S . a te C m p h u h a e e l n r l B e H s . . C P A a h x r a i t s l e e r e , o , d J M r , ., a A n A d a v d g i v s i i n e s g r e r t D o t i o r t h e t c e h t e o B r B o a o r a d r d Go a r n d d o n P ro B g . ra G m r im Di w re o c o t d o , r A fo s r s istant Director J F o r h a n n k J . O H ’B a r r i t e , n S , p J e r c . i , a l S p A e s c s i i a s l t a A n s t s t i o s ta th n e t B to o a th r e d M A r u t r h r u a r y L A . lt B m ro a i n d n a , , S A p s e s c is ia ta l n A t s t s o i s t t h a e n t B t o o a r th d e Board Contingency Planning Board W illiam W. Layton, Director of Equal Donald J. W inn, Special Assistant to the No t r o m th a e n d B o R a . rd V. Bernard, Special Assistant Employment Opportunity Board Brenton C. Leavitt, Program Director for Banking Structure Peter E. Barn a, Program Director for LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS Bank Holding Company Analysis John N icoll, Deputy General Counsel Lyle E. Gram ley, Director Baldwin B. T uttle, Assistant General James L. Pierce, Associate Director Counsel Peter M. Keir, Adviser Charles R. M cN eill, Assistant to the James L. K ichline, Adviser DIVISION OF FEDERAL RESERVE BANK General Counsel Stanley J. Sigel, Adviser OPERATIONS A llen L. Raiken, Adviser Joseph S. Zeisel, Adviser Gary M. W elsh, Adviser James B. Eckert, Associate Adviser Ronald G. Burke, Director Edward C. Ettin, Associate Adviser James R. Kudlinski, Associate Director Robert J. Lawrence, Associate Adviser E. M aurice M cW hirter, Associate Director OFFICE OF SAVER AND CONSUMER AFFAIRS Eleanor J. Stockw ell, Associate Adviser W alter A. A lthausen, Assistant Director Robert M. Fisher, Assistant Adviser Harry A. G uinter, Assistant Director Frederic Solomon, Assistant to the J. C ortland G. Peret, Assistant Adviser Thomas E. M ead, Assistant Director Board and Director Stephen P. Taylor, Assistant Adviser P. D. Ring, Assistant Director Janet 0. Hart, Deputy Director Helm ut F. W endel, Assistant Adviser W illiam H. W allace, Assistant Director Robert S. Plotkin, Assistant Director Levon H. Garabedian, Assistant Director A 86 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY DIVISION OF INTERNATIONAL FINANCE Charles L. Hampton, Director Theodore E. A llison, Secretary Ralph C. Bryant, Director G lenn L. Cummins, Assistant Director G riffith L. Garwood, Assistant Secretary John E. Reynolds, Associate Director W arren N. Minami, Assistant Director tRobert Smith III, Assistant Secretary Robert F. Gemmill, Adviser Robert J. Zemel, Assistant Director Reed J. Irvine, Adviser H elen B. Junz, Adviser DIVISION OF BANKING SUPERVISION DIVISION OF PERSONNEL AND REGULATION Bernard Norwood, Adviser Samuel Pizer, Adviser Keith D. Engstrom , Director Brenton C. Leavitt, Director George B. Henry, Associate Adviser C harles W. W ood, Assistant Director Frederick R. D ahl, Assistant Director Charles J. Siegman, Assistant Adviser Jack M. Egertson, Assistant Director Edwin M. Truman, Assistant Adviser John N. Lyon, Assistant Director OFFICE OF THE CONTROLLER John T. M cClintock, Assistant Director John K akalec, Controller Thomas A. Sidman, Assistant Director T yler E. W illiam s, Jr., Assistant Controller W illiam W. W iles, Assistant Director John E. Ryan, Adviser DIVISION OF ADMINISTRATIVE SERVICES W alter W. Kreimann, Director D onald E. Anderson, Assistant Director John D. Smith, Assistant Director *Temporary appointment. tOn loan from the Federal Reserve Bank of Dallas. A 87 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 Federal Open Market Committee Arthur F. Burns, Chairman A lfred Hayes, Vice Chairman Ernest T. Baughman David P. Eastburn George W. Mitchell Jeffrey M. Bucher Robert C. Holland John E. Sheehan Philip E. Coldwell Bruce K. MacLaury Henry C. Wallich Robert P Mayo Arthur L. Broida, Secretary Robert Solomon Economist M urray Altm ann, Deputy Secretary (International Finance) Normand R. V. Bernard, Assistant Edward G. Boehne, Associate Economist Secretary Ralph C. Bryant, Associate Economist Thomas J. O’C onnell, General Counsel Samuel B. Chase, Jr., Associate Economist Edward G. Guy, Deputy General Counsel Richard G. Davis, Associate Economist John N icoll, Assistant General Counsel Ralph T. Green, Associate Economist J. Charles Partee, Senior Economist John Kareken, Associate Economist Stephen H. Axilrod, Economist James L. Pierce, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist Lyle E. Gramley, Economist K arl O. Scheld, Associate Economist (Domestic Business) Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council Thomas I. Storrs, fifth federal reserve district, President Donald E. Lasater, eighth federal reserve district, Vice President George B. Rockwell, first federal William F. Murray, seventh federal reserve district reserve district Ellmore C. Patterson, second federal George H. Dixon, ninth federal reserve district reserve district James F. Bodine, third federal Eugene H. Adams, tenth federal reserve district reserve district Clair E. Fultz, fourth federal Ben F. Love, eleventh federal reserve district reserve district Lawrence A. Merrigan, sixth 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 89 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* ........... 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. McIntosh NEW YORK* 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs Buffalo ............ ..14240 Donald Nesbitt 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 Phillip R. Shriver Robert E. Showalter Pittsburgh ......... 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND* ............23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall, Sr. George C. Rankin Baltimore ..............21203 James G. Harlow Jimmie R. Monhollon Charlotte ..............28201 Charles W. DeBell Stuart P. Fishburne Culpeper Communications Center ..............22701 J. Gordon Dickerson, Jr. ATLANTA ........... 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham ....... 35202 Frank P. Samford, Jr. Hiram J. Honea Jacksonville ....... 32203 James E. Lyons Edward C. Rainey Nashville ........... 37203 John C. Tune Jeffrey J. Wells New Orleans ...... 70161 Floyd W. Lewis George C. Guynn Miami Office ...... 33152 W. M. Davis CHICAGO* .......... 60690 Peter B, Clark Robert P. Mayo Robert H. Strotz Daniel M. Doyle 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 H. Davis Donald L. Henry Memphis ........... 38101 Jeanne L. Holley 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 T. Person George H. Clay Harold W. Andersen John T. Boy sen Denver ............. 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City _ 73125 James G. Harlow, Jr. William G. Evans Omaha ............. 68102 Durward B. Varner Robert D. Hamilton DALLAS ............. 75222 John Lawrence Ernest T. Baughman Charles T. Beaird T. W. Plant El Paso ............. 79999 Herbert M. Schwartz Fredric W. Reed Houston ............ 77001 Thomas J. Barlow James L. Cauthen San Antonio ....... 78295 Pete J. Morales, Jr. 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 Loran L. Stewart William M. Brown Salt Lake City 84110 Sam Bennion A. Grant Holman Seattle ............... 98124 Malcolm T. Stamper Paul W. Cavan * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 1 1753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 Federal Reserve Board Publications Available from Publications Services, Division of Ad­ Bank Mergers & the Regulatory Agencies: Ap­ ministrative Services, Board of Governors of the Fed­ plication of the Bank Merger Act of 1960. eral Reserve System, Washington, D.C. 20551. Where 1964. 260 pp. $1.00 each; 10 or more to one a charge is indicated, remittance should accompany address, $.85 each. request and be made payable to the order of the Board The Performance of Bank Holding Companies. 1967. 29 pp. $.25 each; 10 or more to one address, of Governors of the Federal Reserve System in a form $.20 each. collectible at par in U.S. currency. (Stamps and The Federal Funds Market. 1959. Ill pp. $1.00 coupons are not accepted.) each; 10 or more to one address, $.85 each. Trading in Federal Funds. 1965. 116 pp. $1.00 The Federal Reserve System—Purposes and each; 10 or more to one address, $.85 each. Functions. 1974. 125 pp. $1.00 each; 10 or more U.S. Treasury Advance Refunding, June to one address, $.75 each. 1960-July 1964. 1966. 65 pp. $.50 each; 10 or Annual Report more to one address, $.40 each. Federal Reserve Bulletin. Monthly. $20.00 per Bank Credit-Card and Check-Credit Plans. 1968. year or $2.00 each in the United States and its 102 pp. $1.00 each; 10 or more to one address, possessions, and in Bolivia, Canada, Chile, Co­ $.85 each. lombia, Costa Rica, Cuba, Dominican Republic, Interest Rate Expectations: Tests on Yield Ecuador, Guatemala, Haiti, Republic of Honduras, Spreads Among Short-Term Government Se­ Mexico, Nicaragua, Panama, Paraguay, Peru, El curities. 1968. 83 pp. $.50 each; 10 or more to Salvador, Uruguay, and Venezuela; 10 or more of one address, $.40 each. same issue to one address, $18.00 per year or $1.75 Survey of Financial Characteristics of Con­ each. Elsewhere, $24.00 per year or $2.50 each. sumers. 1966. 166 pp. $1.00 each; 10 or more Federal Reserve Chart Book on Financial and to one address, $.85 each. Business Statistics. Monthly. Subscription in­ Survey of Changes in Family Finances. 1968. 321 cludes one issue of Historical Chart Book. $12.00 pp. $1.00 each; 10 or more to one address, $.85 per year or $1.25 each in the United States and each. the countries listed above; 10 or more of same issue Report of the Joint Treasury-Federal Reserve to one address, $1.00 each. Elsewhere, $15.00 per Study of the U.S. Government Securities year or $1.50 each. Market. 1969. 48 pp. $.25 each; 10 or more to Historical Chart Book. Issued annually in Sept. one address, $.20 each. Subscription to monthly chart book includes one Joint Treasury-Federal Reserve Study of The issue. $1.25 each in the United States and countries Government Securities Market: Staff Stud­ listed above; 10 or more to one address, $1.00 ies—Part 1. 1970. 86 pp. $.50 each; 10 or more each. Elsewhere, $1.50 each. to one address, $.40 each. Part 2. 1971. 153 pp. The Federal Reserve Act, as amended through De­ and Part 3. 1973. 131 pp. Each volume $1.00; cember 1971, with an appendix containing provi­ 10 or more to one address, $.85 each. sions of certain other statutes affecting the Federal Open Market Policies and Operating Proce­ Reserve System. 252 pp. $1.25. dures—Staff Studies. 1971. 218 pp. $2.00; 10 Regulations of the Board of Governors of the or more to one address, $1.75 each. Federal Reserve System. Reappraisal of the Federal Reserve Discount Published Interpretations of the Board of Gov­ Mechanism, Vol. 1. 1971. 276 pp. Vol. 2. 1971. ernors, as of December 31, 1974. $2.50. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00 Supplement to Banking and Monetary Statistics. each; 10 or more to one address, $2.50 each. Sec. 1. Banks and the Monetary System. 1962. The Econometrics of Price Determination Con­ 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 ference, October 30-31, 1970, Washington, D.C. pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. more to one address, $4.50 each. Paper ed. $4.00 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. each; 10 or more to one address, $3.60 each. 10. Member Bank Reserves and Related Items. Federal Reserve Staff Study: Ways to Moderate 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 Fluctuations in Housing Construction, Dec. pp. $.35. Sec. 12. Money Rates and Securities 1972. 487 pp. $4.00 each; 10 or more to one Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. address, $3.60 each. 24 pp. $.35. Sec. 15. International Finance. 1962. Lending Functions of the Federal Reserve 92 pp. $.65. Sec. 16 (New). Consumer Credit. Banks: A History, by Howard H. Hackley. 1973. 1965. 103 pp. $.65. 271 pp. $3.50 each; 10 or more to one address, Industrial Production—1971 Edition. 1972. 383 $3.00 each. pp. $4.00 each; 10 or more to one address, $3.50 Introduction to Flow of Funds. 1975. 64 pp. $.50 each. each; 10 or more to one address, $.40 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 91 STAFF ECONOMIC STUDIES Revised Measures of Manufacturing Capacity Utilization . 10/71. Studies and papers on economic and financial subjects. Revision of Bank Credit Series. 12/71. that are of general interest in the field of economic Assets and Liabilities of Foreign Branches of research. U.S. Banks. 2/72. Bank Debits, Deposits, and Deposit Turnover— Summaries Only Printed in the Bulletin Revised Series. 7/72. (Limited supply of mimeographed copies of full Yields on Newly Issued Corporate Bonds. 9/72. text available upon request for single copies) Recent Activities of Foreign Branches of U.S. Banks. 10/72. The Impact of Holding Company Acquisitions on Revision of Consumer Credit Statistics. 10/72. Aggregate Concentration in Banking, by One-Bank Holding Companies Before the 1970 Samuel H. Talley. Feb. 1974. 24 pp. Amendments. 12/72. Operating Policies of Bank Holding Companies— Yields on Recently Offered Corporate Bonds. Part II: Nonbanking Subsidiaries, by Robert J. 5/73. Lawrence. Mar. 1974. 59 pp. Federal Fiscal Policy, 1965-72. 6/73. Short-Run Variations in the Money Stock—Sea­ Capacity Utilization in Major Materials Indus­ sonal or Cyclical? by Herbert M. Kaufman and tries. 8/73. Raymond E. Lombra. June 1974. 27 pp. Credit-Card and Check-Credit Plans at Commer­ Household-Sector Economic Accounts, by David cial Banks. 9/73. F. Seiders. Jan. 1975. 84 pp. RateS on Consumer Instalment Loans. 9/73. Printed in Full in the Bulletin New Series for Large Manufacturing Corpora­ tions. 10/73. Staff Economic Studies shown in list below. Money Supply in the Conduct of Monetary Policy. 1/73. REPRINTS U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. Recent Developments in the U.S. Balance of (Except for Staff Papers, Staff Economic Studies, and Payments. 4/74. some leading articles, most of the articles reprinted do Capacity Utilization for Major Materials: Re­ not exceed 12 pages.) vised Measures. 4/74. Seasonal Factors Affecting Bank Reserves. 2/58. Numerical Specifications of Financial Variables Measures of Member Bank Reserves. 7/63. and Their Role in Monetary Policy. 5/74. Research on Banking Structure and Perform­ Banking and Monetary Statistics, 1973. Selected ance, Staff Economic Study by Tynan Smith. series of banking and monetary statistics for 1973 4/66. only. 3/74 and 7/74. A Revised Index of Manufacturing Capacity, Inflation and Stagnation in Major Foreign In­ Staff Economic Study by Frank de Leeuw with dustrial Countries. 10/74. Frank E. Hopkins and Michael D. Sherman. 1 1/66. U.S. International Transactions: Trends in Revision of the Money Stock Measures and Mem­ 1960-67. 4/68. ber Bank Deposits. 12/74. Euro-Dollars: A Changing Market. 10/69. Changes in Time and Savings Deposits at Com­ Recent Changes in Structure of Commercial mercial Banks, April-July 1974. 1/75. Banking. 3/70. U.S. International Transactions in 1974. 4/75. Measures of Security Credit. 12/70. Monetary Policy in a Changing Financial Envir­ Monetary Aggregates and Money Market Con­ onment: Open Market Operations in 1974. ditions in Open Market Policy. 2/71. 4/75. Interest Rates, Credit Flows, and Monetary Ag­ The Structure of Margin Credit. 4/75. gregates Since 1964. 6/71. Changes in Bank Lending Practices, 1974. 4/75. Industrial Production—Revised and New Meas­ New Statistical Series on Loan Commitments at ures. 7/71. Selected Large Commercial Banks. 4/75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 Federal Reserve Bulletin □ April 1975 Index to S tatistical Tables References are to pages A-2 through A-85 although the prefix “A” is omitted in this index (For list of tables published periodically, but not monthly, see inside back cover) ACCEPTANCES, bankers, 9, 25, 27 DEBITS to deposit accounts, 11 Agricultural loans of commercial banks, 16, 18, 78 Debt (See specific types of debt or securities) Assets and liabilities (See also Foreigners): Demand deposits: Banks, by classes, 14, 16, 17, 18, 30, 78 Adjusted, commercial banks, 11, 13, 17 Federal Reserve Banks, 10 Banks, by classes, 14, 17, 20, 21, 81 Nonfinancial corporations, current, 41 Ownership by individuals, partnerships, and cor­ Automobiles: porations, 24 Consumer instalment credit, 45, 46, 47 Subject to reserve requirements, 13 Production index, 48, 49 Turnover, 11 Deposits (See also specific types of deposits): BANK credit proxy, 13 Accumulated at commercial banks for payment of Bankers balances, 16, 17, 20, 80 personal loans, 24 (See also Foreigners, claims on, and liabilities to) Banks, by classes, 14, 17, 20, 21, 30, 81 Banking and monetary statistics for 1974, 78-85 Federal Reserve Banks, 10, 72 Banks and branches, number, by class and State, 76 Subject to reserve requirements, 13 Banks for cooperatives, 38 Discount rates (See Interest rates) Bonds (See also U.S. Govt, securities): Discounts and advances by Reserve Banks (See Loans) New issues, 38, 39, 40 Dividends, corporate, 41 Yields and prices, 28, 29 Branch banks: EMPLOYMENT, 50, 52 Assets, foreign branches of U.S. banks, 70 Liabilities of U.S. banks to their foreign branches FARM mortgage loans, 42 and foreign branches of U.S. banks, 22, 71, 82 Federal agency obligations, 9, 10, 11 Number, by class and State, 77 Federal finance: Brokerage balances, 69 Receipts and outlays, 32, 33 Business expenditures on new plant and equipment, 41 Treasury operating balance, 32 Business indexes, 50 Federal funds, 5, 16, 18, 21, 27, 78, 82 Business loans (See Commercial and industrial loans) Federal home loan banks, 37, 38 Federal Home Loan Mortgage Corporation, 37, 42, 43 CAPACITY utilization, 50 Federal Housing Administration, 42, 43, 44 Capital accounts: Federal intermediate credit banks, 37, 38 Banks, by classes, 14, 17, 22, 82 Federal land banks, 37, 38, 42 Federal Reserve Banks, 10 Federal National Mortgage Assn., 37, 38, 42, 43, 44 Central banks, 60, 75 Federal Reserve Banks: Certificates of deposit, 22, 82 Condition statement, 10 Commercial and industrial loans: U.S. Govt, securities held, 2, 10, 11, 34, 35 Commercial banks, 13, 16, 83, 85 Federal Reserve credit, 2, 4, 10, 11 Weekly reporting banks, 18, 23, 78 Federal Reserve notes, 10 Commercial banks: Federally sponsored credit agencies, 37, 38 Assets and liabilities, 13, 14, 16, 17, 18, 78 Finance companies: Consumer loans held, by type, 45 Loans, 18, 46, 47 Deposits at, for payment of personal loans, 24 Paper, 25, 27 Loans sold outright, 25 Financial institutions, loans to, 16, 18, 78 Number, by classes, 14, 76 Float, 2 Real estate mortgages held, by type of holder and Flow of funds, 56, 57 property, 42-44 Foreign: Commercial paper, 23, 25, 27 Currency operations, 9, 10 Condition statements (See Assets and liabilities) Deposits in U.S. banks, 3, 10, 17, 21, 72, 81 Construction, 50, 51 Exchange rates, 75 Consumer credit: Trade, 59 Instalment credit, 45, 46, 47 Foreigners: Noninstalment credit, 45 Claims on, 66, 67, 68, 72, 73, 74 Consumer price indexes, 50, 53 Liabilities to, 22, 61, 62, 64, 65, 72, 73, Consumption expenditures, 54, 55 74, 82 Corporations: Profits, taxes, and dividends, 41 GOLD: Security issues, 39, 40 Certificates, 10 Security yields and prices, 28, 29 Earmarked, 72 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 60 Currency and coin, 3, 16 Stock, 2, 59 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 93 References are to pages A-2 through A-85 although the prefix “A” is omitted in this index HOUSING permits, 50 Production, 48, 49, 50 Housing starts, 51 Profits, corporate, 41 INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42, 79 Instalment loans, 45, 46, 47 Mortgage yields, 43, 44 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property mortgaged, 42-44 Insured commercial banks, 14, 16, 17, 24, 76 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20 Reserve requirements, member banks, 7 Interest rates: j Reserves: Bonds and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22, 80, 82 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 44 Residential mortgage loans, 43, 44 Prime rate, commercial banks, 26 Retail credit, 45, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69 , 73 SAVINGS. Inventories, 54 Flow of funds series, 56, 57 Investment companies, issues and assets, 40 National income series, 54, 55 Investments (See also specific types of investments): Savings and loan assns., 31, 35, 42, 44 Banks, by classes, 14, 16, 19, 30, 79, 80 Savings deposits (See Time deposits) Commercial banks, 13 Savings institutions, principal assets, 30, 31 Federal Reserve Banks, 10, 11 Securities (See also U.S. Govt, securities): Life insurance companies, 31 Federally sponsored agencies, 37, 38 Savings and loan assns., 31 International transactions, 68, 69 New issues, 38, 39, 40 LABOR force, 52 Yields and prices, 28, 29 Life insurance companies (See Insurance companies) Special Drawing Rights, 2, 10, 58, 59 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 14, 16, 18, 30, 78, 79 Deposits, 17, 20, 81 Commercial banks, 13, 14, 16, 18, 23, 25, 26, Holdings of U.S. Govt, securities, 34, 35 78, 79, 83, 85 New security issues, 38, 39 Federal Reserve Banks, 2, 4, 6, 10, 11 Ownership of securities of, 16, 19, 30, 80 Insurance companies, 31, 44 Yields and prices of securities, 28, 29 Insured or guaranteed by U.S., 42, 43, 44 State member banks, 15, 24, 76 Savings and loan assns., 31 Stock market credit, 29, 30 Stocks (See also Securities): MANUFACTURERS: New issues, 39, 40 Capacity utilization, 50 Yields and prices, 28, 29 Production index, 49, 50 Margin requirements, 8 TAX receipts, Federal, 33 Member banks: Time deposits, 8, 13, 14, 17, 21, 22, 81 Assets and liabilities, by classes, 14, 16, 17 Treasury currency, Treasury cash, 2, 3 Borrowings at Federal Reserve Banks, 4, 10 Treasury deposits, 3, 10, 32 Number, by classes, 14, 76 Treasury operating balance, 32 Reserve position, basic, 5 Reserve requirements, 7 UNEMPLOYMENT, 52 Reserves and related items, 2, 4, 13 U.S. balance of payments, 58 Mining, production index, 49 U.S. Govt, balances: Mobile home shipments, 51 Commercial bank holdings, 17, 20, 81 Money market rates (See Interest rates) Member bank holdings, 13 Money stock and related data, 12 Treasury deposits at Reserve Banks, 3, 10, 32 Mortgages (See Real estate loans and Residential mort­ U.S. Govt, securities: gage loans) Bank holdings, 14, 16, 19, 30, 34, 35, 79 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 36 Mutual savings banks, 20, 30, 34, 42, 44, Federal Reserve Bank holdings, 2, 10, 11, 34, 35 76, 81 Foreign and international holdings, 10, 66, 68, 72 International transactions, 66, 68 NATIONAL banks, 14, 24, 76 New issues, gross proceeds, 39 National defense expenditures, 33 Open market transactions, 9 National income, 54, 55 Outstanding, by type of security, 34, 35 Nonmember banks, 15, 16, 17, 24, 76 Ownership, 34, 35 Yields and prices, 28, 29 OPEN market transactions, 9 Utilities, production index, 49 PAYROLLS, manufacturing index, 50 VETERANS Administration, 43, 44 Personal income, 55 Prices: Consumer and wholesale commodity, 50, 53 WEEKLY reporting banks, 18-22, 78-82 Security, 29 Prime rate, commercial banks, 26 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories A ugust 1 973 — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facilities o Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation P Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area A Assets rp Revised preliminary L Liabilities I, II, S Source of funds III, IV Quarters U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the partic­ ular unit (e.g., less than 500,000 when A.R. Annual rate 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 direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Sales, revenue, profits, and Banks and branches, number, dividends of large manu­ by class and State ....... Apr. 1974 A-88—A-89 facturing corporations __ Mar. 1975 A-83 Semiannually Flow of funds: Assets and liabilities: Number of banking offices: 1962-73 ............ Oct. 1974 A-59.14—A-59.28 Analysis of changes...... Apr. 1975 A—76 On, and not on, Federal Reserve Par List......... Feb. 1975 A-83 Flows: Annually 1965-73 ................. Oct. 1974 A-58—A-59.13 Bank holding companies: Banking offices and depos­ Income and expenses: its of group banks, Dec. Federal Reserve Banks Feb. 1975 A-80—A-81 31, 1973 ................. June 1974 A-80—A-83 Insured commercial banks June 1974 A-84—A-85 July 1974 530 Member banks: Calendar year ........... June 1974 A-84—A-93 Banking and monetary statistics: Income ratios ........... June 1974 A-94—A-99 1973 .......................... July 1974 A-80—A-82 Operating ratios ...... Sept. 1974 A-80—A-85 1974 .......................... Feb. 1975 A-84—A-85 Mar. 1975 A-79—A-82 Apr. 1975 A-78—A-85 Stock market credit .......... Feb. 1975 A-86—A-87 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