Federal Reserve Bulletin, 1975-05

M AY 1975 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 5 □ VOLUME 61 □ M AY 1975 CONTENTS 263 Consumer Lending at A 1 Financial and Business Statistics Commercial Banks A 1 Contents 273 The Current Recession A 2 U.S. Statistics in Perspective A 58 International Statistics 280 Statements to Congress A 76 Board of Governors and Staff 299 Record of Policy Actions A 78 Open Market Committee and Staff; of the Federal Open Market Committee Federal Advisory Council 306 Law Department A 79 Federal Reserve Banks and Branches 335 Announcements A 80 Federal Reserve Board Publications 339 Industrial Production A 82 Index to Statistical Tables A 84 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation Statistical Releases: Reference EDITORIAL COMMITTEE 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

Consumer Lending at Commercial Banks Commercial banks continue to supply a signifi­ Instalment lending by commercial banks has cant volume of funds to finance consumer ex­ been most prominent for three types of con­ penditures for automobiles, nonautomotive sumer financing—new and used automobiles, consumer goods, housing, and other personal “other consumer goods,” and personal loans. items, even though the rate of lending for Home improvement credit, the fourth major such purposes declined more rapidly during type of instalment financing, constitutes only a 1974 at banks than at other sources of consumer small proportion of the consumer loan portfolios funding. To some extent, the decline at com­ at commercial banks. Of the major types of mercial banks reflected the increasing unwill­ instalment credit held by banks, lending on bank ingness of large banks to supply such credit credit cards—a component of the “other con­ after the first quarter of last year. By early 1975, sumer goods” category—and on check-credit however, these banks were showing a greater plans—a component of personal loans—showed inclination than previously to extend not only the largest relative growth during 1974. This short- and intermediate-term consumer credit was particularly true of bank-card credit. but also long-term home mortgage loans. But On the other hand, automobile credit, after demand for consumer financing remained slack a period of rapid expansion during 1972 and through the winter quarter, except in February the first half of 1973, has contracted quite when automobile credit expanded as a result of sharply since introduction of the 1975-model new-car buying stimulated by the automobile manufacturers’ price rebate programs. The contraction in bank lending during the Consumer lending at commercial banks fourth quarter of 1974, and again—but to a Billions of dollars lesser extent—in the first quarter of 1975, oc­ INSTALMENT CREDIT curred as consumers liquidated total outstanding 112 instalment and noninstalment debt at the highest rate in more than 30 years. In addition, there II was a further slowing in the over-all rate of JlM growth in mortgage credit for 1- to 4-family residences—reflecting the depressed activity in markets for both new and existing homes. SB S 4 Notwithstanding the recent sharp decline in NONINSTALMENT CREDIT consumer lending by commercial banks, these institutions still held almost one-half of the -■ M...■...1...■.a J - ■i—i. ...^.....n— consumer instalment credit outstanding in the HOME-MORTGAGE CREDIT United States at the end of April, a little more 1-TO 4-FAMILY UNITS 12 than one-third of the noninstalment consumer credit, and about one-fifth of the mortgage credit on 1- to 4-family structures. While the propor­ tions for both instalment and noninstalment I n . credit are down somewhat from the record levels 1971 1973 15 of late 1972-early 1973, the share of home Quarterly net change in outstandings at seasonally adjusted mortgage financing has changed little since then. annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin □ May 1975 cars last fall. Noninstalment credit, mainly in tive; that is, repayments on existing indebt­ the form of single-payment loans to consumers, edness exceeded new extensions of credit—at has also decreased substantially in recent a seasonally adjusted annual rate of $3.2 billion. months. On balance, all of the fourth-quarter decline in Commercial bank holdings of home mortgage instalment credit occurred at commercial banks, credit are exceeded only by those of savings where the amount outstanding declined at an and loan associations, which account for more annual rate of more than $4 billion. than one-third of the total. On a seasonally The reduced rate of growth in instalment adjusted basis, net lending by commercial banks credit outstanding after the first quarter of 1973, on construction and permanent mortgages se­ as well as the contraction during the fourth cured by 1- to 4-family properties declined quarter of 1974 and in the first quarter of 1975, markedly during the second half of 1974. In can be attributed to a number of factors. On percentage terms, the decline in mortgage loans the demand side, consumer purchasing power at banks was even greater than the reduction has been reduced because of the rise in unem­ at nonbank thrift institutions, despite the large ployment, the slowing of wage rate increases, outflows of savings deposits experienced by the and the continuing, though diminishing, ad­ thrift institutions last summer when short-term vance in the consumer price index. Measures market interest rates rose sharply. Mortgage of consumer sentiment and intentions-to-buy fell lending by banks declined further in the first to exceptionally low levels near the end of 1974. quarter of 1975, but net mortgage debt forma­ In addition, a near-record proportion of dispos­ tion picked up at the nonbank thrift institu­ able personal income had already been commit­ tions—particularly at savings and loan asso­ ted to the repayment of existing instalment ciations—as inflows of deposits strengthened. loans. As a result, consumer demand for major Although their deposit inflows also improved durable goods that generally require financing, during early 1975, commercial banks concen­ such as mobile homes, automobiles, and furni­ trated on building liquid asset balances at a time ture and major appliances, declined markedly of generally slack loan demands. after mid-1974. Automobile sales dropped from a level that had already been depressed by the energy shortage and high gasoline prices. While demand factors have probably had the INSTALM ENT CREDIT most influence on recent changes in consumer During the postwar period, fluctuations in the credit outstanding, supply considerations have rate of change in consumer instalment credit also been important. Under the general condi­ outstanding at short and intermediate term have tions of credit restraint that prevailed throughout tended to lead cyclical changes in aggregate much of 1974, lenders appeared less willing to business activity, and the pattern of the recent extend new credit. Consumer loan rates ad­ contraction has been no exception. On a sea­ vanced somewhat after a lag that may have been sonally adjusted basis, the peak growth in in­ related in part to the existence of the Committee stalment credit outstanding at all lenders—at a on Interest and Dividends during the early record annual rate of $24 billion—occurred months of 1974. And by late in the year rates during the first quarter of 1973, somewhat be­ for some types of consumer loans reached legal fore the economy as a whole reached its cyclical ceilings in a number of States. But despite rising high. consumer loan rates, the spread narrowed during The peak in instalment credit growth at com­ the summer between these rates and the cost mercial banks coincided with that for total in­ of funds to lenders. As a result, net returns stalment credit, and banks accounted for almost available from consumer financing declined rel­ $12 billion of the over-all increase in that ative to other lending opportunities, especially quarter—one-half of the total. By the fourth for banks. In addition, the record postwar level quarter of 1974, however, growth in total in­ of consumer loan delinquencies warranted cau­ stalment credit outstanding had become nega­ tion on the part of lenders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Lending at Commercial Banks 265 Delinquency rates at commercial banks Per cent Per cent Per cent 1974, commercial banks may continue to ac­ A u t o m o b il e C r ed it quire consumer automobile finance contracts Commercial banks still provide most of the from cooperating dealers, either because of prior financing for consumer purchases of new and commitments—possibly related to dealer inven­ used cars, even though the bank share of out­ tory-financing agreements—or because of a de­ standing automobile credit declined during 1974 sire to maintain business relationships and and in the early part of 1975. Banks currently dealer balances for long-run profit. Also, banks hold nearly three-fifths of the automobile instal­ may find it relatively easy to deter direct lending ment credit outstanding in the United States; by reducing their consumer loan promotion and most of the remainder is held by the subsidiary their advertising efforts. Conversely, when finance companies of automobile manufacturers funds become more available, banks may ex­ and by credit unions, both of which have en­ pand consumer lending activity more readily by larged their share of the automobile credit mar­ increasing their advertising and by rationing ket since late 1973. direct loans less strictly than by purchasing Commercial banks sharply reduced their vol­ additional automobile paper from participating ume of consumer new-car financing during dealers. 1974, both absolutely and relative to other During 1973 and through the first quarter of lenders. While total unit sales of new cars— 1974, banks commanded a relatively stable including imported models and domestic fleet share—around 63 per cent—of the volume of sales—declined 23 per cent during 1974 from credit extended for new and used cars com­ the previous year, the number of new cars bined. But the bank share of the auto credit financed by banks fell 26 per cent, and the dollar market began to slide in the second quarter of volume of credit extensions was off 19 per cent. last year, and by December it had fallen to just As is typical in periods of lessened willingness over 55 per cent. The drop was particularly to extend consumer credit, the percentage de­ marked during the fourth quarter—almost 3 clines in the number of units financed and in percentage points—as automobile credit exten­ the dollar volume were down somewhat more sions at banks contracted as much as 20 per for direct new-car loans—29 and 23 per cent, cent on a seasonally adjusted basis. respectively—than for the larger category of While the bulk of the drop in automobile contracts purchased from retail dealers, which credit volume at commercial banks is obviously declined 23 per cent in number and 17 per cent related to the depressed level of car sales, other in dollar volume. factors account for the decline in the bank share Possible explanations for the lesser volatility of the market. In part, the decline came in in purchased-paper volume can be found in the reaction to the vigorous expansion of automo­ relationship between banks and auto dealers, as bile financing by banks that had occurred after well as in other institutional factors. During 1970. Total automobile credit extended by periods of limited credit availability such as in banks expanded 66 per cent between the end Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin □ May 1975 Automobile financing at commercial banks Billions of dollars Thousands of units Hundreds of dollars EXTENSIONS OF CREDIT NUMBER FINANCED AVERAGE NOTE Purchased Purchased Purchased paper paper paper Direct loans Direct loans Direct loans USED CARS Purchased paper Purchased paper Purchased paper Direct loans Direct loans Direct loans Quarterly totals for extensions of credit and number of cars financed. Average note includes finance charges. of 1970 and the end of 1973. In contrast, finance there was a decline in the relative profitability companies—the second largest source of this of auto loans and this further discouraged auto type of financing—raised auto credit extensions financing. Increases in auto finance rates failed only by 29 per cent during the same period. to match those for other types of loans, even With such a sharp expansion in lending, without allowance for the higher servicing costs banks apparently made loans to some higher- of consumer loans. During part of 1974, in fact, risk borrowers. Delinquency rates on automo­ the prime rate for business loans at many banks bile loans at commercial banks trended upward was higher than the finance rates that these throughout most of 1972 and 1973 while re­ banks charged consumers for new cars. maining stable or rising only moderately at other Commercial banks adopted various means to financial institutions. The incentive for banks to restrict or discourage automobile credit demand restructure their automobile loan portfolios in­ during 1974—by both rate and non-rate terms. creased during 1974 as delinquencies rose even At such banks, on the average, the most com­ more sharply at banks than at other lenders. mon finance rate on direct new-car loans with Because of strong competing demands for 36-month maturities rose from about 10.5 per credit—particularly short-term business credit cent, annual percentage rate, in the fall of 1973 for inventory and other financing needs—banks to 11.6 per cent by the end of 1974—somewhat were also pressured during the period of general more than the rate increase on retail new-car financial stringency to curtail all types of dis­ contracts purchased by finance companies over cretionary consumer instalment lending. With the same period. Also, it appears that many businesses and consumers drawing upon exist­ banks tightened their standards of credit­ ing credit lines, banks limited approval of new worthiness; others curtailed advertising, re­ requests for non-line credit such as consumer stricted lending to depositors only, eliminated applications for automobile loans. In addition, marginal dealer accounts, stopped seeking ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Lending at Commercial Banks 267 New-car finance rate compared with prime rate Finance rates on new-car loans have also begun to ease at commercial banks, with the Per cent average most common rate falling below 11.5 per cent in March. Further, the sharp decline in short-term market interest rates and the slackening of business loan demands since late 1974 have begun to make automobile financing relatively more attractive to banks than it had been during most of last year. Proportion of over-36-month new-car contracts 1974 75 at banks and at finance companies First week of month. Predominant prime rate to large busi­ Per cent ness borrowers and the average of “most common” rates on direct 36-month new-car loans to consumers. ditional dealer arrangements, or raised down­ payment requirements. These restrictions were offset in part by a lengthening of maturities on some new-car con­ tracts. Data from a recently revised survey at commercial banks indicate that the proportion of new-car contracts with maturities exceeding 36 months rose from 8.3 per cent in May 1974 to 10.6 per cent in February 1975. However, almost all of this liberalization has been ac­ counted for by paper purchased from retail F in a n c in g o f dealers; the proportion of direct loans with ma­ “ O t h e r C o n su m e r G o o d s” turities in excess of 36 months at commercial banks—5 per cent in February—was virtually Even though the rate of growth in instalment unchanged from May 1974. credit outstanding for “other consumer goods” At finance companies, meanwhile, the slowed markedly during 1974—and the decel­ proportion of new-car contracts having maturi­ eration was especially abrupt toward yearties of more than 36 months soared to 21.6 per end—the total amount of such credit outstanding cent in February, up from 4.4 per cent in Feb­ at all holders exceeded automobile debt in De­ ruary 1974 and from 6.8 per cent in May 1974. cember for the first time on record. At most Most of this increase is the result of longer nonbank financial institutions—finance compa­ maturities on contracts purchased from retail nies, credit unions, and miscellaneous dealers by the subsidiary finance companies of lenders—other consumer goods credit consists the automobile manufacturers. primarily of loans to purchase mobile homes, Despite the relative severity of bank curtail­ recreational vehicles and motorcycles, boats, ment of automobile financing volume last year, furniture, household appliances and electronic signs of a turnaround have become evident in equipment, jewelry, and miscellaneous items. 1975. A number of banks instituted partial in­ In addition to these items, outstanding balances terest rebate plans on car loans during February on bank credit-card accounts are included as and March analogous to the auto producers’ other consumer goods credit by commercial partial price rebate plans, and the bank share banks. of automobile credit extensions was somewhat Financial institutions held 63 per cent of the above the December 1974 low in each month $52 billion total in other consumer goods paper of the first quarter. outstanding at the end of 1974, and commercial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin □ May 1975 banks accounted for two-thirds of all holdings homes, given the risk involved, and in part the by financial institutions. The remaining 37 per rapid lengthening in mobile home loan maturi­ cent of other consumer goods credit—more than ties in recent years. $19 billion—was held by retail outlets, with a Commercial banks cut back their net mobile substantial part in the form of revolving credit home lending from a peak of $1.6 billion, at account balances. a seasonally adjusted annual rate, in the first quarter of 1973 to a negative rate of $184 MOBILE HOMES. Until late 1973 the million in the fourth quarter of 1974. By the growth in mobile home credit outstanding at first quarter of 1975 repayments to banks on commercial banks and finance companies mobile home loans exceeded bank extensions matched the rapid rate of growth in bank credit- of new credit by $460 million at a seasonally card balances. During 1974, however, con­ adjusted annual rate, and extensions of credit sumer demand for mobile homes and for related for consumer mobile home purchases had de­ financing fell sharply, and the mobile home creased from nearly 15 per cent of banks’ total industry experienced a severe retrenchment in financing for other consumer goods in the fourth production, shipments, and sales. At the same quarter of 1973 to less than 8 per cent. time, with rates of delinquency and repossession measurably higher, financial institutions became BANK CREDIT CARDS. Growth in bank­ considerably more reluctant to extend credit to card credit outstanding—either cash advances or consumers for purchases of mobile homes. credit for retail purchases—continued strong Their reluctance reflected in part the relative until the final month of 1974, when repayments unattractiveness of finance rates on mobile exceeded extensions on a seasonally adjusted basis for the first time since January 1972. Even with the decline in December, and another in March 1975, bank credit-card outstandings at Mobile home financing the end of the first quarter amounted to $7.9 Billions of dollars billion, an increase of nearly 20 per cent from the $6.7 billion total of such balances a year COMMERCIAL BANKS earlier. As a proportion of total instalment credit Extensions extensions at banks, card credit expanded from 22.6 per cent in January 1974 to as much as Repayments 28.0 per cent in November. The credit-card share of extensions had averaged less than 20 per cent during 1973. The continued growth in amounts outstanding on credit cards reflects the special cyclical be­ havior of this type of indebtedness. On the demand side, card credit may be used for a wide variety of relatively small purchases, and consumers may increase their use of such FINANCE COMPANIES credit during the early stages of cyclical down­ Extension: turns in an attempt to maintain customary standards of living; that is, over the short run Repayments they use credit cards instead of cash. On the supply side, banks find it difficult to curtail card usage because, for the most part, such usage involves exercising lines of credit already au­ thorized. In contrast, banks can restrict direct Quarterly totals at seasonally adjusted annual rates. automobile lending more readily; since each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Lending at Commercial Banks 269 Credit-card usage in relation to P er so n a l L o a n s total bank instalment lending to consumers Finance companies still hold the largest share of Per the market for personal instalment loans, but 25 commercial banks and credit unions have become 20 increasingly important participants in this type of financing. Some of the rise in bank participation 15 reflects the growth in availability and usage of Bank-card outstandings Billions check credit—classified as personal loans. Most 2.4 check-credit plans allow bank customers to over­ NET CHANGE draw checking-account balances within pre-es­ tablished limits, with the amount of the over­ 1.6 draft—generally rounded to an incrementally larger figure—considered as a personal instalment .8 loan on which interest is charged. .......... n At the end of March 1975 the amounts due from consumers on check-credit plans were 11 0 per cent larger than a year earlier, and they 1971 1972________1973_______1974 ’75 accounted for 16 per cent of the $15.1 billion in personal instalment loans outstanding at commercial banks. However, the bank share of automobile loan requires individual approval, the over-all $44 billion personal loan market the banks can tighten lending standards and was up only slightly from the previous year, apply those standards immediately to all subse­ mainly because the expansion at banks in per­ quent extensions of credit. sonal loans other than check credit lagged the Last year’s expansion of indebtedness on card expansion in personal loans at other financial credit also reflected a trend at banks toward institutions—particularly at credit unions. diverting to credit-card plans many small per­ The rise in check-credit-plan loans during sonal and goods-financing loans. The reasons 1974 is analogous to the increase in bank for the shift include the lower administrative credit-card balances discussed earlier. A line of costs of handling original and repeat extensions credit has already been allocated to a prospec­ of credit under a card plan, the greater likelihood tive user at a predetermined rate of interest, and of generating additional borrowing, and the from the standpoint of customer relations, it is higher finance charges that are generally applied difficult for a bank to make the terms more on credit-card balances. restrictive on existing accounts. At some point during a cyclical downturn, Rates on check-credit-plan loans vary from however, the countercyclical strength in bank­ around 10 per cent, annual percentage rate, at card credit must lessen unless the downturn is some banks to a more general level of 12 per brief because the forces tending to expand such cent to 18 per cent. In this respect, such loans credit cannot operate indefinitely. In time, the are reasonably competitive with conventional increased use of credit-card lines during a direct personal instalment loans at banks—for downswing will push outstanding balances up which the average most common rate is now against credit ceilings; as a result, tighter bank about 13.5 per cent for 12-month maturities. standards for issuing new cards and for raising credit limits on existing cards will become grad­ ually more effective. The December decline in HOME MORTGAGE CREDIT credit-card balances and the relatively weak first-quarter increase suggest that such a tempo­ Commercial banks are second only to savings rary saturation point may have been reached for and loan associations as a source of home mort­ many accounts. gage credit. During 1974 banks accounted for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 Federal Reserve Bulletin □ May 1975 about one-fifth of the long-term home mortgages TABLE 2 acquired by all major lenders. Originations of long-term mortgages on 1- to Most of the long-term home mortgage loans 4-family properties at commercial banks, 1974 held by commercial banks are made directly to By type of mortgage and property households. Occasionally, however, banks buy in the secondary market home mortgages that Amount Banks as a are insured by the Federal Housing Administra­ Item (in millions per cent of all of dollars) major lenders tion or are guaranteed by the Veterans Admin­ Loans originated ............................ 15,839 23 istration. During 1974, in fact, banks originated New properties ......................... 4,281 18 98 per cent of the dollar volume of all long-term FHA-insured ......................... 144 9 VA-guaranteed .................... 286 11 home mortgages that they acquired. Further­ Conventional ......................... 3,851 19 Existing properties ............... 11,558 27 more, although commercial banks sometimes FHA-insured ......................... 226 7 originate and sell home mortgages to other types VA-guaranteed .................... 467 9 Conventional ......................... 10,865 31 of investors—while retaining the servicing Source.—U.S. Department of Housing and Urban Develop­ function—they hold in their own portfolios most ment. of the home mortgage loans that they make. Home mortgage loans sold by banks during 20 per cent for all other major lenders combined 1974 were equivalent to 11 per cent of the (Table 2). volume of loans originated (Table 1). On the average, commercial banks charge somewhat lower interest rates on conventional home mortgage loans than do most other major TABLE 1 lenders. The lower finance rates reflect in part lower loan-to-value ratios and shorter maturities Commercial bank activity in 1- to 4-family mortgages, 1974 Conventional mortgages on existing homes Amount Banks as a Average terms Item (in millions per cent of all of dollars) major lenders Per cent Construction loans; Net acquisitions ....................... 6,541 40 Long-term loans; Gross acquisitions .................. 16,223 18 Loans originated ............... 15,839 23 Loans purchased ............... 384 2 Less: Equal sL:oans sold .................... 1,786 8 Net acquisitions . 14,437 22 Net change in holdings1 .. 6,987 22 Per cent 1Net acquisitions less repayments and other liquidations. LOAN-TO-PRICE RATIOS Source.—U.S. Department of Housing and Urban Develop­ ment. Almost three-fourths of the long-term mort­ gage loans made by banks to households last year were secured by homes that had been previously owned rather than newly built. As a result, banks occupied a somewhat more prominent position in the existing-home mort­ gage market than in the new-home market. Moreover, banks have been making relatively few FHA-insured or VA-guaranteed home loans. In 1974 Government-underwritten loans accounted for only about 7 per cent of the volume of long-term home mortgages originated 1974 ’75 by commercial banks, compared with more than Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Lending at Commercial Banks 271 at banks than at other lending institutions. In LENDING 1974 the average loan-to-value ratio on conven­ BY SIZE OF BANK tional loans for existing homes originated by the principal lending institutions ranged from 67 per Virtually all commercial banks extend credit to cent at commercial banks to 86 per cent at consumers, but the relative importance of con­ mortgage companies; and the average contract sumer financing in the total loan portfolio and maturity ranged from 20 years at banks to 29 the degree of specialization within the major years at mortgage companies, according to data categories of consumer credit vary widely by from the Federal Home Loan Bank Board. On deposit size of bank. Of some 14,200 insured improved properties, national banks are prohib­ commercial banks, fewer than 50 banks reported ited by law from making conventional mort­ no holdings of short- or intermediate-term con­ gages with loan-to-value ratios greater than 90 sumer credit, according to the Federal Deposit per cent and with maturities exceeding 30 years. Insurance Corporation report of condition for Until recently, mortgage loans made by na­ December 31, 1974; less than 5 per cent held tional banks had to constitute first liens, and no home mortgages. second and other junior mortgages were pro­ Consumer and mortgage loans combined ac­ hibited. Among other things, the Housing and counted for around one-third of total commer­ Community Development Act of 1974, which cial bank loans outstanding, almost equal to the became effective last August, amended the amount of commercial and industrial loans. The Federal Reserve Act to permit national banks breakdown was 16 per cent of all bank loans to make junior mortgages under certain condi­ as consumer instalment loans, 5 per cent as tions. In three-fourths of the States, banking single-payment loans to individuals and others, regulations authorize State-chartered banks to and nearly 15 per cent as mortgage loans on make second mortgages, although many of these 1- to 4-family properties. The bulk of such States allow such loans only if the bank holds credit is held at the largest banks—the three the first mortgage or if the second mortgage is largest deposit-size groups hold nearly twofor the purpose of liquidating other loans by the fifths of total consumer and mortgage credit at same borrower at the bank. all banks (Table 3). Even so, such banks gener­ TABLE 3 Loans at FDIC-insured commercial banks, December 31, 1974 Loans outstanding Banks Ratios to total loans (in per cent) (in billions of dollars) Consumer loans Consumer Consumer 1- to 4- Deposit size Number Total and and family (in millions of dollars) mortgage mortgage Total Instalment Single mo lo r a tg n a s ge payment Less than 25 ........................... 10,531 60.5 29.1 48.1 28.8 22.3 6.5 19.3 25-99.999 ..................................... 2,879 80.4 40.9 50.9 30.6 24.1 6.5 20.3 100-499.999 .............................. 631 82.9 37.5 45.3 27.4 22.1 5.3 17.9 500-999.999 .............................. 91 45.6 17.7 38.7 23.1 16.9 6.1 15.6 1,000-9,999.999 .................... 75 123.2 34.1 27.6 15.3 12.0 3.3 12.3 10,000 and over .................... 9 109.5 17.6 16.0 8.0 5.8 2.2 8.0 All banks ................................. 14,216 502.1 176.8 35.2 20.5 15.9 4.6 14.7 Note.— Data from Federal Deposit Insurance Corporation report of condition for Dec. 31, 1974. Report of condition figures for consumer instalment and noninstalment loans outstanding on Dec. 31, 1974, are not strictly comparable with the regular monthly consumer credit totals previously published by the Federal Reserve Board for the corresponding date because of certain adjustments made in the monthly series, and because of the time lag in benchmarking the monthly series to report of condition data. Also, report of condition data for 1- to 4-family mortgages include construction and land loans for such properties. Percentages based on dollar amount of loans outstanding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 Federal Reserve Bulletin □ May 1975 TABLE 4 Selected types of consumer instalment loans as a proportion of total consumer instalment loans at FDIC-insured commercial banks, December 31, 1974 Banks “Other consumer goods” Home Deposit size Automobile Bank credit Mobile Personal improvement Number Total (in millions of dollars) cards home Less than 25 .................. 10,531 51.7 22.3 .8 11.6 20.4 5.6 25-99.999 ......................... 2,879 48.1 24.8 2.8 12.5 20.8 6.3 100-499.999 .................. 631 40.0 30.1 10.8 11.7 22.8 7.1 500-999.999 .................. 91 34.2 35.6 16.7 11.1 22.6 7.6 1,000-9,999.999 .... 75 32.3 35.4 18.4 10.9 24.5 7.8 10,000 and over ____ 9 27.5 36.6 26.0 6.3 27.8 8.0 All banks....................... 14,216 40.9 29.5 10.3 11.2 22.6 6.9 Note.— See Note to Table 3. ally commit a smaller share of their total loan ances, which account for 10 per cent of total portfolio to this type of lending than do smaller instalment credit outstanding. In this field the banks, where credit demands tend to be less larger banks, which are often “card-issuing” diversified. banks, tend to dominate, whereas smaller banks As of the end of 1974, except for the smallest tend to be “agent” banks that may hold little, deposit-size category—consisting mostly of if any, credit under this form of lending ar­ rural banks that make mainly farm loans—the rangement. The nine largest banks in deposit proportion of consumer and mortgage loans in size held 20 per cent of all credit-card receiv­ the total portfolio declined as the deposit size ables at the end of 1974. On the other hand, of banks increased. This pattern was most pro­ emphasis on mobile home loans appeared to be nounced for instalment loans; the home mort­ unrelated to the size of bank, if banks with $10 gage category traced a similar but less marked billion and over in deposits are excluded. pattern. Single-payment loans, including such The data, while clearly showing variations in loans for nonconsumer purposes, showed little loan distribution among banks grouped by de­ variability in portfolio concentration, except for posit size, nevertheless obscure a wide range a lower proportion at banks with $1.0 billion of loan practices among banks within given size and over in deposits. groups. For instance, in each size group— Within the instalment loan category, banks including the largest—some banks held no mo­ differ according to deposit size in the type of bile home loans; in contrast, for some banks loan emphasized (Table 4). On the average, car in the small- to medium-sized categories, mo­ financing accounted for 41 per cent of all instal­ bile home loans comprised 60 to 70 per cent ment credit outstanding at banks at the end of of their entire consumer instalment loan portfo­ 1974 (down from 43 per cent in June), but the lios. Similar diversity existed in the other in­ smaller banks exceeded this proportion and the stalment loan categories; several banks with larger banks fell below it. Large banks showed deposits of less than $100 million made only a comparative preference for loans for home auto loans or only personal loans. For all types improvement and for other consumer goods. of loans other than card credit, the smaller banks The latter category includes credit-card bal­ tended to specialize more than the larger ones. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

273 The Current Recession in Perspective I am glad to meet with this distinguished group the year advanced it became increasingly clear of business and financial journalists in a lei­ that our economy was moving into a recession. surely setting. As a policy-maker, I feel I have During the past two quarters the real gross much in common with the members of your national product has declined by 5 per cent, and profession. Both you and I must be alert to every the level of industrial production is now 12 or twist and nuance of the changing economic 13 per cent below that of last September. The scene. Both you and I must keep busy searching unemployment rate has risen swiftly and so also the business skies for some clues to the eco­ has the idle capacity in our major industries. nomic future. I find this aspect of my work The decline in business activity since last fall exciting and intriguing as I am sure you do. has been the steepest of the postwar period, and But it does involve a certain risk for both of yet the advance of the price level—while con­ us. siderably slower than last year—is continuing Sharing—as we do—the problem of contin­ at a disconcerting pace. ually meeting deadlines, we are in danger of No business-cycle movement can be compre­ becoming so preoccupied with the very short hended solely in terms of the events that occur run that we fail to see economic events in within that cycle or the one preceding it. The perspective. For that very reason, I have wanted economic currents of today are heavily in­ to take advantage of your invitation so that we fluenced by longer-range developments—such might ponder together the historical develop­ as changes in economic and financial institu­ ments that have brought our economy to its tions, the course of public policy, and the atti­ present condition. This is a large and highly tudes and work habits of people. By examining important subject. I cannot hope to do full the historical background of recent ecomomic justice to it on the present occasion. Never­ troubles, we should be able to arrive at a better theless, I shall make a start this evening. understanding of where we now are. As you are well aware these past few years The current recession is best viewed, and I have been trying times for the American people. believe it will be so regarded by historians, as Not only have we lived through the agony of the culminating phase of a long economic cycle. Vietnam and Watergate but some of us have There have been numerous long cycles in the even begun to wonder whether our dream of past—that is, units of experience combining two full employment, a stable price level, and a or more ordinary business cycles. One such long rising standard of living for all our people is cycle ran its course from 1908 to 1921, another beyond fulfillment. from 1921 to 1933. And if we go back to the Early last year economic expansion began to 19th century, we encounter long cycles from falter in our country as it did in other countries 1879 to 1894 and from 1894 to 1908. These around the world. At the same time, the pace long cycles differ in innumerable ways from one of the inflation that had been building for more another. But they also have some features in than a decade accelerated sharply further. As common—in particular, each culminates in an economic decline of more than average inten­ sity. Note.—Paper presented by Arthur F. Burns, Chairman, The beginning of the long cycle that now Board of Governors of the Federal Reserve System, at appears to be approaching its natural end may the 12th annual meeting of the Society of American Business Writers, Washington, D.C., May 6, 1975. be dated as early as 1958, but it is perhaps best Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 Federal Reserve Bulletin □ May 1975 to date its start in 1961. The upward movement industrial countries as well as the United States. of economic activity that began in that year was The first speculative movement involved cor­ checked briefly in 1967 and was interrupted porate mergers and acquisitions. In the euphoria more significantly in 1970. Although these in­ of what some commentators have called the terruptions were watched with concern and “go-go” years, rapid growth of earnings per some anxiety by practicing economists and other share of common stock became the overriding interested citizens, they will be passed over goal of many business managers. Other yard­ lightly by economic historians concerned with sticks of corporate performance—such as the large events. rate of return on new investments—were ne­ The reason is not hard to see. Putting aside glected, and so too were the serious risks of monthly and quarterly data and looking only at increased leveraging of common stock. annual figures, we find that total employment The aggregate volume of large corporate ac­ rose every year from 1961 through 1973. So quisitions, which for some years had been run­ also did disposable personal income and per­ ning at about $2 billion per year, jumped to sonal consumption expenditures—both viewed $3 billion in 1965, $8 billion in 1967, $12.5 on a per capita basis and in real terms. This billion in 1968, and then tapered off. This was sustained upward trend of the economy came the great era of conglomerates, when a variety to an end in 1974. of unrelated businesses were brought together The successive phases of the long upswing under a single corporate management. Entre­ from 1961 to 1974 provide a useful perspective preneurs who displayed special skill in such on our current problems. Some years ago in my maneuvers were hailed as financial geniuses— work at the National Bureau of Economic Re­ until their newly built empires began to crum­ search, I observed a pattern in past long up­ ble. Being preoccupied with corporate acquisi­ swings—an initial stage that may be called the tions and their conglomerate image, many busi­ “industrial phase” followed by what is best nessmen lost sight of the traditional business described as the “speculative phase.” The im­ objective of seeking larger profits through better balances that develop in this latter phase lead technology, aggressive marketing, and im­ inevitably to the final downturn. The events of proved management. The productivity of their the past 15 years conform rather closely to this businesses suffered and so too did the Nation’s pattern. productivity. The period from 1961 through 1964 may be The spectacular merger movement of the late regarded as the industrial phase of the long 1960’s was reinforced, and to a degree made upswing. Productivity grew rapidly—increasing possible, by the speculative movement that de­ in the private nonfarm sector at an annual rate veloped in the market for common stocks. The of 3.6 per cent between the final quarters of volume of trading on the New York Stock 1960 and 1964, or well above the average rate Exchange doubled between 1966 and 1971, and of the preceding decade.'Unit labor costs were for a time trading volume on the American then remarkably stable, and so too was the Exchange rose even faster. The prices of many general price level. Real wages and profits rose stocks shot up with little regard to actual or strongly. During this period of sustained eco­ potential earnings. During the 2-year period nomic expansion, unemployment fell from 1967-68, the average price of a share of com­ about 7 per cent of the labor force to 5 per cent, mon stock listed on the New York Exchange while the rate of use of industrial capacity rose rose 40 per cent, while earnings per share of substantially. the listed companies rose less than 2 per cent. The second—or speculative—phase of the On the American Exchange the average price long upswing began around 1965 and continued per share rose during the same years more than through much of 1974. This 10-year period was 140 per cent on an earnings base that again was marked by a succession of major, interrelated, virtually unchanged. and partly overlapping speculative waves that Much of this speculative ardor came from a in varying degrees gripped the other leading section of the mutual fund industry. For the new Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Current Recession in Perspective 275 breed of “performance funds,” long-term in­ sections of the Nation it has virtually come to vestment in the shares of established companies a halt. Failures of construction firms and unem­ with proven earnings became an outmoded con­ ployment among construction workers have cept. In their quest for quick capital gains these reached depression levels. These unhappy de­ institutions displayed a penchant for risky in­ velopments stem in large measure from the vestments and aggressive trading. In 1965 a excesses of the housing boom that got under typical mutual fund turned over about one-fifth way in 1970. of its common stock portfolio; by 1969 that Inflationary expectations clearly played a fraction had risen to nearly one-half. As Wall substantial role in bolstering the demand for Street then had it, the “smart money” went into houses. But the boom was fostered also by an issues of technologically oriented firms or into array of governmental policies designed to corporate conglomerates—no matter how well stimulate activity in the housing sector. These or poorly they met the test of profitability. governmental measures, however well-inten­ Speculation in equities was cooled for a time tioned, gave little heed to basic supply condi­ by the stock market decline of 1969-70, but tions in the industry or to the underlying demand then it resumed again and took on new forms. for housing. Money managers began to channel a prepon­ In response to easy credit and Federal subsi­ derant part of their funds into the stocks of large dies merchant builders moved ahead energeti­ and well-known firms—apparently with the cally, put up 1-family homes well ahead of thought that earnings of those companies were demand, and thus permitted the inventory of impervious to the vicissitudes of economic life. unsold homes to double between 1970 and A huge disparity was thereby created between 1973. Speculative activity was even more in­ the price/earnings ratios of the “favored 50” tense in the multifamily sector—that is, in and those of other corporations. Share prices apartments built for renting, and particularly in of these “favored” companies were, of course, condominiums and cooperatives, which ac­ especially hard hit in the subsequent shakeout counted for a fourth of the completions of mul­ of the stock market. tifamily structures by the first half of 1974. Speculation in common stocks was not con­ The boom in housing was financed by a huge fined to the United States. From the late 1960’s expansion of mortgage credit and construction until about 1973 nearly every major stock ex­ loans. Real estate investment trusts played an change in the world experienced a large run-up exceptionally large role in supplying high-risk in share prices, only to be followed by a drastic construction loans for condominiums, recrea­ decline. Indeed, speculation reached a more tional developments, and other speculative ac­ feverish pace in some countries than in the tivities. The growth of real estate trusts was United States. On the Tokyo stock exchange, extraordinary by any yardstick. Their assets, for example, both share prices and the trading amounting to less than $700 million in 1968, volume actually doubled in the 12 months be­ soared to upwards of $20 billion by 1973. tween January 1972 and January 1973 and then Unsound practices accompanied this rapid suffered a sharp reversal. growth and, as a result, many real estate trusts The third speculative wave that nourished the now face difficult financial problems. long upswing of our national economy occurred The speculative boom in real estate was not in the real estate market. Homebuilding fluc­ confined to residential structures. It extended to tuated around a horizontal trend during the speculation in land, widespread building of 1960’s. The vacancy rate in rental housing was shopping centers, and construction of office at a high level from 1960 to 1965, then fell buildings. By 1972 the vacancy rate in office steadily until the end of the decade, and thus buildings reached 13 per cent, but this type of helped pave the way for a new housing boom. construction still kept climbing. Between January 1970 and January 1973 the The real estate boom in the United States volume of new housing starts doubled. Since during the early 1970’s had its parallel in other then, homebuilding has plunged, and in some countries. Speculation in land and properties Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 Federal Reserve Bulletin □ May 1975 became rampant in the United Kingdom. In dramatic advance of food prices in 1973, and 1972 alone new house prices rose 47 per cent later in energy prices, greatly compounded the on the average. The amount of credit absorbed worldwide inflationary problem. In our country in real estate ventures rose so rapidly that the these price pressures were suppressed for a time Bank of England felt forced to place special by price and wage controls, but the general price controls on bank lending for such purposes. And level exploded when controls were phased out in Germany the boom in residential construction in late 1973 and early 1974. during 1971-73 left an inventory of about a One of the unfortunate consequences of in­ quarter million unsold units—more than a third flation is that it masks underlying economic of a peak year’s output—that now overhang the realities. As early as the spring of 1973 a market. perceptible weakening could be detected in the It is in the nature of speculative movements trend of consumer buying in this country. The to spread from one country or market to another. business community, however, paid little atten­ Just as the speculative wave in real estate was tion to this ominous development. The escalat­ beginning to taper off in 1973, a new wave of ing pace of inflation fostered expectations of still speculation got under way—this time in inven­ higher prices and persistent shortages in the tories. That was the fourth and final speculative years ahead so that intensive stockpiling of episode of the long economic upswing from commodities continued. Inventories increased 1961 to 1974. It involved massive stocking up out of all proportion to actual or prospective of raw materials, machinery, parts, and other sales. In fact, the ratio of inventories to sales, supplies in the United States and in other indus­ expressed in physical terms, had risen by the trial countries. summer of 1974 to the highest figure for any The inventory speculation of 1973 and 1974 business-cycle expansion since 1957—another was the outgrowth of a boom in business activity year when a severe recession got under way. that had raised its head by 1972 in virtually In summary, the period from 1965 to 1974 every industrial country of the world. The was marked by a succession of interrelated, synchronism of economic expansion in these partly overlapping, speculative waves—first, in countries was partly coincidental, but the ex­ buying up of existing businesses; then, in the pansion that stemmed from ordinary business- stock market; next, in markets for real estate; cycle developments was reinforced by the and finally, in markets for industrial materials adoption of stimulative economic policies al­ and other commodities. most everywhere. As a result, production in­ A prolonged speculative boom of this kind creased rapidly around the world and led to a can seldom be traced to a single causal factor. burgeoning demand for raw materials, machine In this instance, however, a dominant source tools, component parts, and capital equip­ of the problem appears to have been the lack ment—goods for which our country is a major of discipline in governmental finances. source of supply. The pressure of rising world The industrial phase of the long upswing drew demand was reinforced in our markets by the to a close in late 1964 or early 1965. By then devaluation of the dollar, which greatly im­ the level of real output was very close to the proved our competitive position in international limits imposed by our Nation’s physical capac­ trade. ity to produce. By then the level of wholesale By the beginning of 1973, as business firms prices was already moving out of its groove of attempted to meet intense demands from both stability. Nevertheless, our Government did domestic and foreign customers, serious bottle­ nothing to moderate the pace of expansion of necks and shortages had begun to develop in aggregate monetary demand. On the contrary, numerous industries—especially those produc­ it actually embarked on a much more expansive ing steel, nonferrous metals, paper, chemicals, fiscal policy. The tax reductions of 1964 were and other raw materials. In this environment of followed in 1965 by fresh tax reductions and scarcities, the rise in prices of industrial com­ by a huge wave of spending both for new social modities quickened both here and abroad. The programs and for the war in Vietnam. These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Current Recession in Perspective 277 misadventures of fiscal policy doomed the in turn grew much more rapidly than holdings economy to serious trouble, but we were slow of current assets. to recognize this. Indeed, substantial tax reduc­ Similar trends developed in some segments tions occurred again in 1969 and 1971, and they of commercial banking. Large money market too were followed by massive increases of ex­ banks came to rely more heavily on volatile penditures . short-term funds to finance their business cus­ Deficits therefore mounted, and they persisted tomers, and at times they increased their loan year in and year out. Over the last ten complete commitments to businesses beyond prudent fiscal years—that is, from 1965 through 1974— limits. A few bank managers, too, began to the Federal debt held by the public, including concern themselves excessively with maximiz­ obligations of Federal credit agencies, rose by ing short-run profits so that the prices quoted more than 50 per cent. The large and persistent for their common stock would move higher. deficits added little to our Nation’s capacity to Capital ratios of many banks deteriorated; produce, but they added substantially to aggre­ questionable loans were extended at home and gate monetary demand for goods and services. abroad; insufficient attention was given here and They were thus directly responsible for much there to the risks of dealing in foreign exchange of the accelerating inflation that has taken place markets; and too much bank credit went into in the past decade. the financing of speculative real estate ventures. Monetary and credit policies were not without A variety of loose practices also crept into some fault. As every student of economics State and local government finance. Faced with knows, inflation cannot continue indefinitely rapidly expanding demands for services and without an accommodating increase in supplies limited sources of revenue, some governmental of money and credit. It is very difficult, how­ units resorted to extensive short-term borrowing ever, for a central bank to maintain good control and employed dubious accounting devices to of money and credit when heavy governmental conceal their budget deficits. Statutory debt borrowing drives up interest rates and when the limits were circumvented through the creation public is unwilling to face squarely the long-run of special public authorities to finance the con­ dangers inherent in excessively stimulative eco­ struction of housing, schools, and health facili­ nomic policies. ties. Some of these authorities issued so-called To make matters worse, laxity in our national “moral obligation” bonds, which investors in economic policies spilled over into private mar­ many instances regarded as the equivalent of kets. The “new economics,” of which less is “full faith and credit” obligations. The novel heard now than before, held out the possibility, financial devices seemed innocuous at the time, if not the actual promise, of perpetual prosper­ but they have recently become a source of ity. Many businessmen and financiers came to serious concern to investors in municipal se­ view the business cycle as dead and to expect curities . the Federal Government to bail out almost any A nation cannot realistically expect prosper­ enterprise that ran into financial trouble. All too ous economic conditions to continue very long frequently, therefore, the canons of financial when its Federal government fails to heed the prudence that had been developed through hard warning signs of accelerating inflation, when experience were set aside. many of its business leaders spend their “fin­ Many of our business corporations courted est” hours arranging financial maneuvers, and trouble by permitting sharp reductions in their when aggressive trade unions push up wage equity cushions or their liquidity. In the manu­ rates far beyond productivity gains. After 1965 facturing sector, the ratio of debt to equity— the strength of the American economy was which had been stable in the previous decade— gradually sapped by these ominous trends. Pro­ began rising in 1964 and nearly doubled by the ductivity in the private nonfarm sector, which end of 1974. Moreover, a large part of the had grown at an annual rate of 3.6 per cent indebtedness piled up by business firms was in from 1961 through 1964, slowed to a 2.2 per the form of short-term obligations, and these cent rate of advance from 1964 to 1969, then Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 Federal Reserve Bulletin □ May 1975 to 1.5 per cent from 1969 to 1974. Expansion credit demands and of the Federal Reserve’s in the physical volume of national output like­ efforts to bolster the growth of money and wise declined during successive quinquennia. credit. Commercial banks have taken advantage The rate of inflation, meanwhile, kept acceler­ of the reduced demand for loans to repay their ating. borrowings from Federal Reserve Banks, reduce With the pace of inflation quickening, seeds reliance on volatile sources of funds, and rebuild of the current recession were thus sown across liquid assets. The rapidly rising inflow of de­ the economy. Rising prices eroded the purchas­ posits to thrift institutions has likewise permitted ing power of workers’ incomes and savings. a reduction of their indebtedness and an addition Corporate profits diminished—a fact that busi­ to their liquid assets. nessmen were slow to recognize because of Fourth, the recession is wringing inflation out faulty accounting techniques. New dwellings of the economic system. Wholesale prices of were built on a scale that greatly exceeded the late have moved down, and the rise of consumer underlying demand. Inventories of commodities prices has also slowed. Although general price piled up, often at a fantastic pace, as business­ stability is not yet in sight, a welcome element men reacted to gathering fears of shortages. of price competition has at long last been re­ Credit demands, both public and private, stored to our markets. soared, and interest rates rose to unprecedented These and related business developments are heights. paving the way for recovery in economic activ­ These basic maladjustments are now being ity. No one can foresee with confidence when worked out of the economic system by reces­ the recovery will begin. The history of our sion—a process that entails enormous human country indicates clearly, however, that the cul­ and financial costs. Our country has gone a minating downward phase of a long cycle need considerable distance in developing policies to not be of protracted duration. alleviate economic hardships, and these policies Signs are multiplying, in fact, that an upturn have been strengthened recently. Nevertheless, in economic activity may not be far away. For the recession has wrought great damage to the example, employment rose in*April after six lives and fortunes of many of our people. successive months of decline. The length of the This recession has cut deeply into economic workweek also stabilized last month. The rate activities. It must not, however, be viewed as of layoffs in manufacturing is now turning being merely a pathological phenomenon. Since down, and some firms have been recalling we permitted inflation to get out of control, the workers who formerly lost their jobs. Sales of recession is now performing a painful—but also goods at retail—apart from autos—have risen an unavoidable—function. further. Business and consumer confidence has First, it is correcting the imbalances that been improving. And prospects for an early developed between the production and sales of upturn in economic activity have been strength­ many items, between orders and inventories, ened by passage of the Tax Reduction Act of between capital investment and consumer 1975. spending, and between the trend of costs and Our Nation stands at present at a crossroads prices. in its history. With the long and costly cycle Second, business managers are responding to in business activity apparently approaching its the recession by moving energetically to im­ end, the critical task now is to build a solid prove efficiency—by concentrating production foundation for our Nation’s economic future. in more modern and efficient installations, We will accomplish that only if we understand eliminating wasteful expenditures, stimulating and benefit from the lessons of recent experi­ employees to work more diligently, and work­ ence. ing harder themselves. Since World War II a consensus has been Third, the recession is improving the condi­ building in this country that the primary task tion of financial markets. Interest rates have of economic policy is to maintain full employ­ moved to lower levels as a result of declining ment and to promote maximum economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Current Recession in Perspective 279 growth. We have pursued these goals by being rated from spending decisions and the latter ever ready to stimulate the economy through handled in piecemeal fashion. Budgets in this increased Federal spending, lower taxes, or country have just happened. They certainly have monetary ease. Neglect of inflation, and of not been planned. longer-run economic and financial problems, We are now attempting to change that by has thus crept insidiously into public policy­ adopting integrated congressional decisions on making. Our Government has become accus­ revenues and expenditures. My advice to you tomed to respond with alacrity to any hint of journalists is to follow this new effort closely. weakness in economic activity, but to react It has a significance for our Nation that may sluggishly, and sometimes not at all, to signs carry far into the future. But nothing can be of excess demand and developing inflationary taken for granted here. We have tried budgetary pressures. reform once before under the Legislative Reor­ The thinking of many of our prominent econ­ ganization Act of 1946 and it failed. It failed omists has encouraged this bias in our economic partly because of the challenge to cherished policies. During the 1950’s and 1960’s they committee prerogatives, partly also because the frequently argued that “creeping inflation” was Congress as a whole balked at accepting so a small price to pay for full employment. Some much self-discipline. I would urge you to study even suggested that a little inflation was a good the history of that earlier effort and to watch thing—that it energized the economic system the present undertaking for telltale signs of a and thus promoted rapid economic growth. similar faltering. This is a dangerous doctrine. While inflation The potential gain for our Nation from budget may begin slowly in an economy operating at reform is enormous even in this first year of high pressure, it inevitably gathers momentum. a “dry run.” If, in fact, the work of the new A state of euphoria then tends to develop, eco­ budget committees produces in the Congress a nomic decision-making becomes distorted, deeper understanding of the impossibility of managerial and financial practices deteriorate, safely undertaking all the ventures being urged speculation becomes rampant, industrial and by individual legislators, a constructive begin­ financial imbalances pile up, and the strength ning toward a healthier economic environment of the national economy is slowly but surely will have been made. On the other hand, if the sapped. That is the harsh truth that the history new budget procedures are scuttled, or if they of business cycles teaches. are used with little regard to curbing the bias To emphasize this truth I should now like to toward large-sized Federal deficits, there ulti­ offer this distinguished group of journalists a mately may be little anyone can do to prevent bit of professional advice. Since few of you are galloping inflation and social upheaval. reluctant to pass along hints as to how I should I am inclined to be optimistic about the out­ do my job, I have decided to suggest to you come. More and more of our people are be­ what the really big economic news story of 1975 coming concerned about the longer-range con­ is likely to be. sequences of Federal financial policies. A The story has to do with the drama now perspective on our Nation’s economic problems unfolding on Capitol Hill in the implementation is gradually being gained by our citizens and of the Budget Control Act adopted last year. their congressional representatives. A healthy If I am right in thinking that our present eco­ impatience with inflation is growing. You jour­ nomic difficulties are largely traceable to the nalists are becoming more actively involved in chronic bias of the Federal budget toward defi­ the educational process. I therefore remain cits, there can be no doubt about the importance hopeful that we shall practice greater foresight of what is now being attempted. No major in dealing with our Nation’s economic problems democracy that I know of has had a more than we have in the recent past and that we deficient legislative budget process than the will thus build a better future for ourselves and United States—with revenue decisions sepa­ our children in the process. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 Statements to Congress Statement by Jeffrey M. Bucher, Member, implement the existing Act. In working on those Board of Governors of the Federal Reserve regulations, we have come to appreciate more System, before the Subcommittee on Consumer fully the many problems inherent in regulations Affairs of the Committee on Banking, Currency of this nature and the serious possibility that and Housing, U.S. House of Representatives, without a thorough and detailed examination of April 22, 1975. these problems such regulations may be inef­ fective or even counterproductive. There is always the risk that Federal regulations I appreciate the opportunity to appear before the might—without intending to do so, and without Subcommittee on Consumer Affairs to offer the even accomplishing positive benefits—so hob­ views of the Board of Governors of the Federal ble the credit-granting process as to significantly Reserve System on H.R. 3386, amending the increase credit losses. The result of such in­ Equal Credit Opportunity Act, which was intro­ creased losses would be either increased costs duced by you, Mr. Chairman, and co-sponsored to other borrowers or a general raising of credit by other members of this subcommittee. The standards—with the resulting exclusion of some Act forbids discrimination in the extension of of the more marginal credit risks, typically credit on the basis of sex or marital status. The among the disadvantaged, who are now able to bill would add to these categories race, color, obtain credit. Either kind of reallocation of religion, national origin, and age. credit risks, if at all extensive, would be con­ Let me begin by stating, as I did in testifying trary to the public interest. before this subcommittee on June 20, last year, We must say, in all candor, that even in the that the Board strongly favors the elimination area of preventing credit discrimination on the of discrimination based on factors other than basis of sex or marital status it will be extremely creditworthiness in credit transactions. difficult to accomplish the worthy objectives Although no legal right to receive credit exists while successfully avoiding the pitfalls along the and the creation of such a right would be inap­ way. Our best hope for achieving this will propriate in our free enterprise system, the depend upon our efforts to study and understand Board believes a great deal can be done to assure the problems as thoroughly as possible, to con­ that there is access to credit on a just and fair sult as extensively as we can, to draft the basis for equally creditworthy people. The de­ regulations as carefully and objectively as we nial of credit based upon group identification know how, and then to stand ready to amend without reference to creditworthiness works to them promptly as may prove necessary in the the economic disadvantage of applicants and light of experience. Each of us at the Board creditors alike. is spurred by the keen realization of how much Nevertheless, the Board recommends that the is at stake in this endeavor. Unless it is carried Congress delay enactment of this legislation out in the best possible manner, we not only until such time as experience is available to may fail to gain the positive benefits that are assess the impact of the Equal Credit Opportu­ so earnestly sought but we also may damage nity Act, which goes into effect later this year. the credit machinery—and even bring discredit Our study of this proposed legislation has come upon this and other laudable efforts to dispel at a time when the Board and its staff are bias and prejudice by reasoned and orderly immersed in the preparation of regulations to developments in our legal system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 281 The experience with truth in lending—a restricted to an inquiry as to the probable stabil­ subject that is inherently far less difficult and ity of income of the particular applicant—an less controversial than that of discrimination in inquiry which might or might not properly in­ lending—can, we believe, be instructive here. clude a question as to that individual’s health Truth in lending was discussed and debated in and life expectancy? congressional committees over an extended At the other end of the spectrum, should a period. Representatives of all points of view had creditor in deciding whether to lend to a 20ample opportunity to consider and present their year-old applicant be permitted to take into positions. After carefully weighing the various consideration the creditor’s own experience in presentations, the Congress spelled out in the the particular geographical area with the pay­ law a great portion of the principles and even ment record of persons in, say, the 18- to the details that it wished to have followed. The 25-year age bracket? Or must the creditor re­ Board of Governors was then given a year strict inquiry to the credit record—possibly quite within which to write regulations filling in the a limited record—of the individual applicant? remaining details. If the latter, then a further question arises as I am convinced that a good part of whatever to whether alternative indexes of stability are success has been achieved in administering available that will make it possible for the truth in lending can be attributed to the creditor to distinguish between good and bad thoroughness with which the subject was studied credit risks within a particular age bracket as and the explicitness with which the Congress effectively as he could do on the basis of set forth its intention. statistics derived from his general experience. Even though legislation on credit discrim­ The creditor’s cost of granting credit will be ination probably cannot be as explicit or detailed increased to the extent that such alternative tests as that on truth in lending or fair credit do not eliminate bad credit risks as efficiently billing, we believe it is of vital importance that as can be done through statistically based scor­ any extensions of the Equal Credit Opportunity ing (and offsetting benefits do not occur). The Act be launched with optimal prospects for cost of credit will also be increased to the extent success. Crucial to such prospects will be the that the alternative tests are more expensive to extent to which the Congress identifies and apply. And any such increased costs, of course, analyzes the issues, sets forth its intentions in will have to be borne by borrowers generally, the statute, and allows adequate time for the unless the creditor chooses the alternative of writing of regulations. raising credit standards. This, in turn, will have In light of these considerations, we are con­ the effect of depriving marginal borrowers— vinced that further extension of the Equal Credit often those in lower income brackets—of access Opportunity Act should be preceded by exten­ to credit. sive exploration, delineation, and resolution of Even though different forms of discrimination the extremely complex issues that are inherent require somewhat different remedies, we would in this subject. In this connection, the category hope that experience under the regulations to of “age,” one of the additional categories prevent discrimination on the basis of sex or which would be covered by H.R. 3386, poses marital status would be helpful to both the Board unusually complex questions. For example, and to the Congress in formulating measures to there is a very important issue as to what extent deal with other forms of unfair discrimination. it may be valid to analogize statistical credit Accordingly, we would suggest that the experience to the actuarial tables dealing with Congress continue its study of the problems life expectancy that are used by insurance com­ involved in extending the Equal Credit Oppor­ panies in setting premium rates. Should a credi­ tunity Act to cover the proposed new categories tor be permitted to take into account the bor­ not only to permit full analysis of the issues rower’s statistically predicted life expectancy in but also to get the benefit of experience under making a long-term loan to an individual 65 or the regulations with respect to credit discrim­ 70 years of age? Or should the creditor be ination based on sex and marital status (we will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 Federal Reserve Bulletin □ May 1975 issue these regulations this week for comment). mentioned above. It may also be desirable to We believe it essential for the Congress to have provide an opportunity for oral presentation of the benefit of assessing the experience of con­ comments before the Board. Resulting com­ sumers and creditors in living under the regula­ ments must be analyzed and the earlier draft tion in this particular area of credit discrim­ revised. ination before enlarging the scope of the Equal In adopting the Equal Credit Opportunity Act, Credit Opportunity Act. the Congress deferred the effective date of the If the Congress, after considering these fac­ statute for 1 year in order to allow time for these tors, nevertheless chooses to proceed with the procedures to be carried out in an orderly fash­ inclusion of additional categories under the Act, ion. It is becoming evident that a year will the Board would wish to emphasize the impor­ provide a bare minimum of the time needed for tance of adequate time in rulewriting in these writing rules in a single category of credit dis­ new and little-studied areas in order to afford crimination. a suitable opportunity for public participation In view of the increased number and com­ in the rulewriting process. Draft regulations plexity of the issues that are likely to be inherent must be prepared and submitted for public in the proposed extension of the Equal Credit comment. This process in itself requires exten­ Opportunity Act to cover discrimination on the sive informal consultation with consumer and basis of race, color, religion, national origin, creditor groups, as well as background eco­ and age, we believe that 2 years should be nomic studies—wherever feasible—in the effort allowed for the difficult and vitally important to illuminate some of the difficult trade-offs task to be performed, □ Statement by Arthur F. Burns, Chairman, The recession has been accompanied by a Board of Governors of the Federal Reserve notable degree of moderation in the rate of System, before the Committee on Banking, inflation. Nevertheless, despite the severity of Housing and Urban Affairs, U.S. Senate, May the economic decline, the general price level 1, 1975. has continued to advance quite rapidly. In other respects this recession resembles earlier declines I welcome the opportunity to discuss with this of the past 30 years. Thus, consumer demand distinguished committee the condition of the for autos, furniture, household appliances, and national economy and the course of monetary other durable goods has fallen. Orders or con­ policy. tracts by business firms for new facilities and As you well know, our Nation at present is equipment have likewise declined. And in this experiencing a severe recession. During the past as in earlier recessions, a shift from inventory two quarters the real gross national product has accumulation to inventory liquidation has been declined by 5 per cent and the level of industrial a major depressant of production and employ­ production is now 12.5 per cent below last ment. September. This is the steepest decline of eco­ Last fall business firms were rather slow in nomic activity in a long generation. reacting to the weakness that had been develop­ The recession has resulted in a large reduction ing in consumer markets, in part because of their of jobs and in substantial underemployment of lingering concern about shortages of raw mate­ our labor and capital resources. The unemploy­ rials and other supplies. As a result, a build-up ment rate has risen swiftly, the amount of over­ of inventories—much of it involun­ time work has been cut drastically, and the tary—occurred in the final quarter of 1974. In number of employees placed on a part-time the opening months of this year, however, as basis has also risen. sales to final users stabilized in real terms, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 283 liquidation of inventories got under way on a issued by corporations this year, and stock of­ huge scale. Actually, all of the decline in the ferings have also increased somewhat. A part Nation’s physical volume of production between of the proceeds of these financings has been used the fourth quarter of 1974 and the first quarter to repay short-term debt, thereby improving of 1975 reflects a shift on the part of the business corporate liquidity. community from inventory investment to in­ Financial institutions have also improved ventory liquidation. their financial condition. Commercial banks As production declined much of our industrial have taken advantage of the reduced demand capacity was idled, and this has left its mark for business loans to repay their borrowings on commodity prices. Sensitive prices of indus­ from Federal Reserve Banks, reduce reliance on trial raw materials had already begun to weaken volatile sources of funds, and rebuild liquid in the spring of 1974. By late fall the effects assets. At nonbank thrift institutions, the rapidly of declining business activity began to show up rising inflow of deposits has likewise permitted in wholesale prices of intermediate materials, a reduction of indebtedness and an addition to supplies, and components, and later on in prices liquid asset holdings. Thus, financial institutions of finished goods. Since November the over-all are now in a better position to meet the needs index of wholesale prices has moved down, with for credit that will accompany the renewal of farm prices falling substantially and the advance economic expansion. of industrial prices moderating. In recent No one can foresee with confidence when an months the index of consumer prices has also economic recovery will begin. Signs are risen less rapidly than during 1974, and the emerging, however, that the turn in business prices of many products have been marked activity may not be far away. down in retail markets. For example, new mortgage loan commit­ These price developments have served as a ments by savings and loan associations have significant stimulus to consumer spending. Al­ risen strongly since last October. Industrial pro­ though after-tax incomes of consumers in the duction and total employment fell further in first 3 months of this year were lower in real March, but the declines were much smaller than terms than in the final months of 1974, con­ in the previous 4 months. Prices of sensitive sumer purchases—especially of durable industrial raw materials have stabilized recently goods—have perked up in response to price as supply and demand have come into better concessions on autos and other items. In fact, balance. Sales of goods at retail—apart from consumer expenditures rose in real terms as well autos—rose further in March. Of late, consumer as in dollars during the first quarter. Largely surveys have indicated that there is some im­ for this reason the efforts of business firms to provement in confidence. And stock prices, an­ work down their excess stocks have been nota­ other indicator of confidence, have continued to bly successful, and inventories are now in better rise briskly. balance with sales. Prospects for an upturn in economic activity This has been one of the economic adjust­ have also been strengthened by passage of the ments needed to lay the basis for recovery in Tax Reduction Act of 1975. The large rebate production and employment. Other corrective of 1974 tax liabilities, the additional payment adjustments have also been under way. Business to social security beneficiaries, and the reduction managers have been moving energetically to in withholding of 1975 taxes will soon add to improve efficiency—by concentrating produc­ disposable incomes and bolster consumer tion in more modern installations, eliminating spending. Larger consumer buying will help to wasteful expenditures here and there, stimu­ stem the erosion in business investment plans, lating employees to work more diligently, and and the liberalization of the investment tax working harder themselves. Significant progress credit will also stimulate business capital out­ has also been made in strengthening the finan­ lays. More business investment is urgently cial position of businesses. Exceptionally large needed not only to provide additional jobs but amounts of longer-term securities have been also to improve the capacity and efficiency of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 Federal Reserve Bulletin □ May 1975 our industrial plants—thereby contributing to than short-term rates. Of course, long-term rates moderation of inflationary pressures. typically fluctuate within a narrower range than Let me turn now to the contribution that short-term rates; but in the present instance, monetary policy has made to establishing a basis other powerful factors have also been at work. for recovery in business activity. Fears of inflation are still widespread in the Once evidence began to accumulate during business and financial community and long-term the summer of last year that economic activity interest rates therefore still contain a sizable was weakening, the Federal Reserve took steps inflation premium. Moreover, as I noted earlier, to ease credit conditions and bolster growth rates corporations have issued an enormous volume of the monetary aggregates. Open market of bonds in the past several months, and State operations became more accommodative, and as and local governments have also borrowed large the year progressed they were persistently sums in the capital markets. directed toward more ample provision of re­ More recently, the huge financing demands serves to the banking system. Other monetary of the Treasury have become a major disturbing instruments reinforced open market policy. Re­ element in the money and capital markets. By ductions of reserve requirements of member the end of this fiscal year, new Federal borrow­ banks were ordered last September, November, ing—including borrowing by the off-budget and again this January. The discount rate was agencies and Government-sponsored enter­ also reduced—once in each month from De­ prises—will probably amount to more than $60 cember through March. billion. A large part of that total deficit is due These Federal Reserve actions to augment the to the recession, and it has been financed thus supply of loanable funds, together with the far without undue difficulty because private weakening of private demands for credit, had credit demands have been declining. During the a dramatic effect on short-term rates of interest. next fiscal year, however, the total deficit will For example, the Federal funds rate—the rate rise to perhaps as much as $100 billion. Partici­ banks pay when borrowing reserves from one pants in financial markets recognize that private another—has declined from a level of about credit demands, too, may be rising soon, and 13Vi per cent, registered in July of last year, they have therefore become concerned about the to about 5Vi per cent at present. The interest strains that may develop in financial markets. rate on commercial paper declined from over The Federal Reserve has responded to these 12 per cent last July to around 6 per cent. And developing tensions in the capital market by the prime rate of interest on bank loans to shifting the emphasis in its open market opera­ businesses has fallen from 12 to l l/i per cent. tions from Treasury bills to longer-term Gov­ Short-term market rates of interest in the ernment securities. Since the end of February United States fell earlier, more rapidly, and to System purchases of coupon issues of the lower levels than in other industrial countries. Treasury and Federal agencies have amounted Consequently, investors were able to obtain to almost $2.5 billion. In view of the limited higher yields by shifting funds out of dollar scope of the market for longer-term Federal assets into investment in other currencies. These securities, this is a very large volume of buying interest rate differentials help to explain the in a short span of time. large decline that occurred in the foreign- These purchases have been helpful in steady­ exchange value of the dollar between September ing the bond market. But let there be no mis­ 1974 and early March of this year. During taking the fact that Federal Reserve operations recent weeks short-term interest rates in foreign in the market can have only an ephemeral influ­ countries have declined relative to those here, ence on long-term interest rates. The funda­ and the dollar has strengthened in exchange mental factor forcing up long-term interest rates markets. in recent years has been the high rate of infla­ In the markets for long-term securities, inter­ tion. Appreciably lower long-term interest rates est rates in the United States have also declined are needed now to stimulate economic expan­ from their previous peaks, although much less sion, but they are unlikely to be attained unless Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 285 further progress is made in bringing inflation during such periods market rates of interest under control. usually decline and stimulate faster rates of Success in this endeavor will require more growth of consumer-type deposits at banks and fiscal discipline than we have managed to nonbank thrift institutions. achieve in recent years. It will also require a For example, the growth of Mx since last course of moderation in monetary policy—a summer had been quite modest until recent course that will provide an expansion in supplies weeks. The annual rate of increase in this of money and credit adequate to facilitate a good measure of money was 1.6 per cent during the economic recovery but not so large as to re­ third quarter of 1974, 4.6 per cent in the fourth kindle the fires of inflation. quarter, and 3.5 per cent in the first quarter of What the Federal Reserve has been trying to this year. Over this time span, however, the accomplish in this regard cannot be understood annual rate of growth of consumer-type time adequately by focusing on a single measure of deposits at commercial banks increased from money balances. Some observers believe that 7.1 per cent during the third quarter of 1974 the Federal Reserve should devote almost ex­ to 12.7 per cent in the first quarter of 1975. clusive attention to the behavior of the narrowly The improvement in deposit inflows to nonbank defined money supply (Mx)—that is, currency thrift institutions—that is, mutual savings plus demand deposits—in the conduct of mone­ banks, savings and loan associations, and credit tary policy. We in the Federal Reserve do not unions—was even more pronounced. take so narrow a view of our responsibilities. During periods of economic expansion, the The public’s demands for currency, for behavior of Mj may again be misleading. At checking deposits, for savings deposits, and for such times large demands for credit and money a host of other liquid assets are constantly are likely to strengthen the growth of but changing. Financial technology in our country interest rates will tend to rise and thereby curtail has developed rapidly in the past 20-30 years. the flow of interest-bearing deposits to banks As a rule consumers and business firms no and savings institutions. A monetary policy for­ longer hold all, or even most, of their spendable mulated on the basis of Mx alone would ignore funds in the form of currency or demand depos­ the pressures of disintermediation that develop its. More and more corporate treasurers have in periods of economic expansion and thus learned how to get along with a minimum of threaten further damage to the mortgage market deposits in their checking accounts. Consumers, and to the homebuilding industry. too, are learning to keep an increasing part of In an effort to avoid errors of this kind, the their transactions and precautionary balances in Federal Reserve takes into account the behavior the form of savings deposits at commercial of a variety of monetary and credit aggregates banks, of shares in savings and loan associa­ in conducting monetary policy. We also pay tions, of certificates of deposit, of Treasury careful attention to the condition of financial bills, or other income-earning liquid instru­ markets—that is, to movements in interest rates, ments. Moreover, as yields vary, many individ­ lending terms, the liquidity needs of businesses uals and business firms have become accus­ and financial institutions, and other variables, tomed to shifting their liquid resources fre­ including the international value of the dollar, quently among these assets. The result is that all of which must be given weight in the conduct no single concept of money now conveys ade­ of monetary policy. quately the spendable funds held by the public. Included with my statement today are four The behavior of the narrowly defined money tables. Two show the recent behavior of a supply, Mi, can prove to be a misleading guide number of the principal monetary and credit to the degree of monetary ease or restraint. For aggregates, and the others show the recent be­ example, in periods of declining economic ac­ havior of the various components of the several tivity, weakness in transactions demands for measures of money. cash and in business and consumer demands for Let me describe briefly what is encompassed credit will tend to slow the growth of Mx. But in each of these money and credit measures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 Federal Reserve Bulletin □ May 1975 TABLE 1 and credit were not growing rapidly enough. This judgment, based largely on the behavior Growth in measures of money and credit of Mx, could have been avoided by taking a Seasonally adjusted percentage change, at annual rates more comprehensive view of the economy’s needs for money, credit, and liquid assets, and q Y u e a a r r t e o r r My m2 m 3 m4 m 5 C pr r o e x d y it how these needs are met by our complex finan­ cial system. 1972 ......................... 8.7 11.1 13.2 12.5 14.0 11.3 We in the Federal Reserve recognize that the 1973 ......................... 6.1 8.8 8.8 11.6 10.6 10.4 1974 ......................... 4.7 7.4 6.8 10.8 9.1 10.2 growth rates of money and credit that are ap­ 1974— Ql 5.5 9.3 8.9 10.9 10.0 8.2 propriate at any moment of time depend on Q2 ............. 7.0 7.9 6.8 15.4 11.6 20.4 underlying economic conditions. At present, our Q3 ............. 1.6 4.5 4.0 6.0 5.1 6.7 Q4 ............. 4.6 7.0 7.0 9.2 8.6 4.2 Nation is experiencing very high rates of unem­ 1975—Ql 3.5 8.5 10.3 7.2 9.2 3.1 ployment and idle industrial capacity. Thus, even though an upturn in business activity may Note.—These percentage rates of growth are calculated be near at hand, the restoration of full employ­ from average levels in last months of the annual or quarterly periods. Percentage rates of growth based on quarterly average ment of our labor and capital resources will data would show a somewhat different pattern. remain a central objective of public policy for many months to come. M1? as I have already noted, includes currency The Federal Reserve System is presently in circulation plus demand deposits at commer­ seeking a moderate rate of expansion in the cial banks. M2 is derived by adding to Mx the monetary and credit aggregates. We believe that time deposits at commercial banks other than the course we are pursuing will promote an large-denomination negotiable certificates of increase in Mx of between 5 and IVi per cent deposit (CD’s). M3 is obtained by adding to M2 over the 12 months from March 1975 to March the time and savings deposits held at nonbank 1976. This is a rather high rate of expansion thrift institutions—that is, savings banks, sav­ by historical standards, but it is not too high ings and loan associations, and credit unions. when idle resources are extensive and financing M4 is obtained by adding large CD’s to M2; needs still reflect rising prices. M5 is derived by adding large CD’s to M3. This A growth rate of Mt in the range of 5 to last measure, M5, is the most comprehensive IV2 per cent would, we believe, be accompanied of this group, for it includes the currency hold­ by higher rates of increase in; the other major ings of the public plus deposits at all financial monetary and credit aggregates—ranging from institutions. Finally, the credit proxy indicates SV2 to 10V2 per cent for M2, 10 to 12 per cent the funds that member banks of the Federal for M3, and 6V2 to 9V2 per cent for the credit Reserve System have available for lending and proxy. Increases of this order of magnitude is thus an indicator of changes in their total loans and investments. TABLE 2 Each of these magnitudes reflects a different dimension of monetary policy. For example, the Levels of money and credit measures annualized growth rate of Mx in the first quarter Seasonally adjusted, billions of dollars of this year was 3.5 per cent, as noted earlier. Growth in the credit proxy was marginally Year or M Credit quarter t m 2 m 3 m 4 m 5 proxy lower—reflecting, in part, an outright decline in the outstanding volume of CD’s and of 1972— Dec. .. 255.8 525.7 844.9 569.7 888.8 406.4 nondeposit liabilities of member banks. The 1973— Dec. .. 271.5 572.2 919.6 636.0 983.4 448.7 1974— Dec. ... 284.3 614.3 982.5 704.6 1,072.8 494.3 other measures of money, on the other hand, 1974— Mar. .. 275.2 585.5 940.0 653.4 1,007.9 457.9 show growth rates in the 7 to 10 per cent range, June .. 280.0 597.1 955.9 678.5 1.037.2 481.2 or about as high as in 1973. Sept. . 281.1 603.8 965.5 688.7 1.050.3 489.2 Dec. .. 284.3 614.3 982.5 704.6 1,072.8 494.3 Of late, there has been some concern in the 1975—M ar.... 286.8 627.4 1,007.8 717.2 1,097.5 498.1 Congress and elsewhere that supplies of money Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 287 would imply a good inflow of deposits to non­ TABLE 4 bank intermediaries and a relatively ample sup­ Levels of components of money stock measures ply of mortgage funds. Seasonally adjusted, billions of dollars These rates of monetary and credit expansion are sufficient, we believe, to finance a vigorous Commer­ economic recovery. If past experience is any cial Nonbank Year or Cur­ Demand bank time deposi­ guide, the strength of the recovery will depend quarter rency deposits deposits tary CD’s principally on the willingness of the public to other than claims’ CDs use existing money balances, rather than on the growth rate of the money stock. The first few 1972— Dec. .. 56.9 198.9 269.9 319.1 43.9 1973— Dec. .. 61.6 209.9 300.7 347.4 63.8 quarters of a cyclical recovery in business ac­ 1974— Dec. .. 67.8 216.6 330.0 368.3 90.3 tivity typically witness increases in the turnover 1974— Mar. .. 63.3 21 1.9 310.3 354.5 68.0 of money that are much larger than the rate of June .. 64.6 215.4 317.1 358.8 81.3 Sept. . 65.9 215.3 322.7 361.6 84.8 rise in the money stock. This characteristic of Dec. .. 67.8 216.6 330.0 368.3 90.3 business-cycle experience is of vital importance 1975— Mar. .. 69.4 217.5 340.5 380.4 89.8 to monetary policy, and it must never be neg­ lected. 1 Deposits in mutual savings banks, savings and loan associ­ ations, and credit unions. We recognize that our capacity to foresee the future is very limited and that our control of the monetary ancj credit aggregates is imperfect. major business failure or a disruption of energy The growth ranges for the aggregates we havp supplies—the economic and financial outlook set out to achieve may need to be adjusted in can change quickly and dramatically. The Fed­ one way or another. New information on eco­ eral Reserve must stand ready to make promptly nomic and financial developments becomes such adaptations in the course of policy as may available daily, and the course of monetary be needed to minimize economic and financial policy must therefore be reappraised continu­ difficulties. The Board and the Federal Open ously. In an economy as dynamic as ours, Market Committee therefore meet frequently. subject to unforeseen developments—such as a Thus, while I have given you our present views on the appropriate ranges of growth in the monetary and credit aggregates, these views TABLE 3 may need to be modified a month or two from now. Growth in components of money stock measures The rates of growth in monetary and credit Seasonally adjusted percentage change, at annual rates aggregates presently desired by the Federal Re­ serve, while appropriate in the present environ­ Commer­ cial Nonbank ment, could not be maintained indefinitely Y qu ea a r r te o r r r C en u c r­ y D de e p m o a s n it d s b d a e n p k o s ti i m ts e de t p ar o y si­ CD’s without running a serious risk of releasing new other than claims’ inflationary pressures. As the economy returns CDs to higher rates of resource utilization, it will be necessary to reduce the rate of monetary and 1972 .................... 8.2 8.9 13.5 16.8 31.0 1973 .................... 8.3 5.5 1 1.4 8.9 45.3 credit expansion so that the basis for a lasting 1974 .................... 10.1 3.2 9.7 6.0 41.5 prosperity is laid. 1974— Ql .... 11.0 3.8 12.8 8.2 26.3 Let me remind this committee that the Q2 .... 8.2 6.6 8.8 4.9 78.2 Q3 .... 8.0 -0.2 7.1 3.1 17.2 principal cause of the current recession is our Q4 .... 11.5 2.4 9.0 7.4 25.9 earlier failure to bring inflation under control. 1975—Ql .... 9.4 1.7 12.7 13.1 -2.2. As the pace of inflation quickened in recent years, the seeds of recession were sown across deposits in mutual savings banks, savings and loan associ­ ations, and credit unions. the economy. Rising prices eroded the purchas­ Note.—These percentage rates of growth are calculated from average levels in last months of the annual or quarterly ing power of workers’ incomes and savings. periods. Percentage rates of growth based on quarterly average data would show a somewhat different pattern. Managerial practices of business enterprises be­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 Federal Reserve Bulletin □ May 1975 came lax, productivity languished, and cor­ The Federal Reserve is firmly committed to porate profits diminished—a fact that business­ do what it can to restore general price stability men were slow to recognize because of faulty in this country. The Federal Reserve is also accounting techniques. New homes, recrea­ firmly committed to restore full employment in tional dwellings, and condominiums were built this country. on a scale that greatly exceeded the underlying During the next year this Nation can, and I demand. Inventories of raw materials and other believe it will, make progress toward the supplies piled up, often at a reckless pace, as achievement of both of these objectives. The businessmen reacted to fears of shortages and immediate need is to get the economy moving still higher prices. Credit demands, both public again. But as we go forward, I hope we will and private, soared and interest rates rose to be mindful of the damage that has been wrought unprecedented heights. Commercial banks be­ in our economy by allowing inflation to get out came overextended; the quality of loans tended of control, and that we will deal resolutely with to deteriorate, and the capital position of many the serious longer-range economic problems banks was weakened. facing our country. A better measure of disci­ These basic maladjustments are now being pline is needed in Federal finances. The pro­ worked out of the economic system by reces­ gressively diminishing fraction of the national sion—a painful process that could have been income that goes to people who work and invest avoided if the inflation had not gotten out of requires searching scrutiny. Regulatory prac­ control. Fortunately, the rate of inflation has tices that weaken private enterprise need to be declined substantially in recent months, but the relaxed or scrapped. Ways must be found to behavior of prices is still unsatisfactory. The stimulate production of energy ’supplies, to in­ general price level still appears to be rising at crease incentives for expansion and moderni­ a 7 to 8 per cent annual rate; wage increases zation of productive capacity in other lines, and continue to exceed by a wide margin the long- to strengthen the state of business finances. run trend of productivity; and interest rates Attention to these longer-range problems is remain at high levels by historical standards. essential; for the critical task now facing our The menace of inflation is by no means behind country is not only to encourage the process of us. Defeat of inflationary forces must therefore economic recovery but also to build a solid remain a major goal of public policy. foundation for our Nation’s economic future. Statement by George W. Mitchell, Vice Chair­ The bill would authorize the GAO to conduct man, Board of Governors of the Federal Re­ an annual audit, and in so doing the Comptroller serve System, before the Subcommittee on Do­ General would be accorded access to such mestic Monetary Policy of the Committee on records, including reports of examinations of Banking, Currency and Housing, U.S. House member banks, from whatever source, as he of Representatives, May 8, 1975. finds necessary for the conduct of the audits. The Comptroller General would be required to Mr. Chairman and members of the subcommit­ submit a report of each audit to the Congress. tee, I welcome the opportunity you have af­ As we understand the bill, the Comptroller forded me to present the views of the Board General would be granted virtually unrestricted of Governors on H.R. 4316, a bill to authorize authority to look into the financial and opera­ and direct the General Accounting Office to tional aspects of the Federal Reserve System and audit the Federal Reserve Board, the Federal would thus have the authority to review and Advisory Council, the Federal Open Market evaluate all aspects of Federal Reserve activi­ Committee, and the Federal Reserve Banks and ties, including formulation and implementation their branches. of monetary policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 289 The Board of Governors over the years has by the full Committee on Banking and Currency consistently opposed such proposals. Our ob­ in the 93rd Congress, and to a greater extent jections stem not from any reservations about in the bill finally adopted by the House of the GAO, which enjoys a well-deserved reputa­ Representatives last year. tion for competence and integrity. Rather, our With your permission, I’d now like to sketch objections stem from a basic concern about the briefly the background on this subject. optimal functioning of the Nation’s money and 1. From its establishment in 1913 until 1921 credit system. the Board of Governors was audited by the In summary, the Board believes: Treasury. 1. An audit by the GAO of the Federal 2. The Congress created the GAO in 1921. Reserve System’s accounts and expenditures, For the next 12 years the Board of Governors, compliance with applicable laws and regula­ but not the Federal Reserve Banks and branches, tions, and efficiency and economy of operations came under the GAO’s scrutiny. would be a needless duplication of present ef­ 3. The Banking Act of 1933 provided that forts and would result in unnecessary additional the Board’s funds should not be construed to expenditures. be “Government funds or appropriated 2. To go further and authorize the GAO to moneys.” In this Act, the Congress deliberately audit Federal Reserve policies, including the voted to remove the Board from the jurisdiction processes by which those policies are reached, of the GAO. The purpose, described in a com­ would unwisely inject a third party into the mittee report, was to “leave to the Board the sensitive area of monetary policy. This would determination of its own internal management run contrary to congressional decisions over the policies.” years based on the view that noninterference 4. In the years between 1933 and 1952, audit with the internal management of the Federal teams from Federal Reserve Banks performed Reserve would, in the long run, provide better the audit of the Board’s books. monetary and credit policies. We believe the 5. Beginning in 1952 and continuing up to Congress has acted prudently and that the Sys­ this time, the Board, using the discretion that tem should not be inhibited, directly or indi­ the Congress provided, voted to employ nation­ rectly, from exercising its best professional ally recognized public accounting firms to per­ —and entirely independent—judgment. form this function in order to assure an inde­ 3. The recent passage of House Concurrent pendent oversight of the Board’s administrative Resolution 133 by the Congress has sharply activities. Each year the audit report is repro­ altered the context in which the question of a duced in the Board’s Annual Report, and copies GAO audit must be considered. As you know, of the audit report are furnished to this commit­ this resolution provides for a direct “audit” of tee and to the Senate Committee on Banking, Federal Reserve policy by the congressional Housing and Urban Affairs. principals—the Committee on Banking, Cur­ 6. Meanwhile, year in and year out, the rency and Housing in the House of Repre­ Board’s examiners have examined the Reserve sentatives and its counterpart in the Senate. Banks. Since 1952 the procedures used by the Thus, a policy audit by the GAO not only could Board’s examination staff have been observed fault public policy but also would be literally by the outside accounting firms employed to redundant to the action taken by the Congress audit the Board’s books. This provides an ex­ this year. ternal evaluation of the adequacy and effec­ 4. Certain functions and activities of extreme tiveness of the examination procedures. A copy sensitivity having to do with bank examinations of the latest such report, from Touche Ross & and international monetary relations would be Company, was recently transmitted to this or would need to be substantially modified were committee and to the Senate Committee on a GAO review to be put into effect. The need Banking, Housing and Urban Affairs, along for exclusion of these activities was recognized with a response to the report prepared by the to some degree in the bill (H.R. 10265) reported Board’s staff. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 Federal Reserve Bulletin □ May 1975 7. In 1945 during hearings on the Govern­ billions of dollars, with a minimum loss or ment Corporation Control Act, the GAO ex­ defalcation, requires a comprehensive control pressed the view that the Reserve Banks should and audit program. If we have erred in the extent be excluded from the Act because they are of control, it has been toward overcontrol, and examined frequently and thoroughly by exam­ it has been intentional. No system is perfect, iners under the direction of the Board of Gover­ and we have had our occasional difficulties and nors. problems, which have not been hidden from 8. In 1954 at hearings on H.R. 7602, the public view; but the record shows a high rate Bureau of the Budget stated that the inde­ of success in preventing irregularities. pendence of the Federal Reserve System was We believe that a GAO audit would duplicate “an important cornerstone of the Administra­ the audit costs and resources the Federal Re­ tion’s fiscal and monetary policies.” serve must, by necessity, incur regardless of any audit activity on the part of the GAO. The System spends $8.5 million annually for audit­ THE INTEGRITY ing the Reserve Banks and the Board. While OF THE CENTRAL BANK this is a large sum of money, it is less than This brief chronology indicates, among other 1 l/i per cent of the total expenses of the System things, that both the Board of Governors and and is miniscule in comparison with either the the Boards of Directors of the Federal Reserve assets or the transactions that the audit program Banks have traditionally been committed to is designed to protect. thorough audits of System activities. We are so The Congress originally established the Board committed because the Federal Reserve System of Governors, which is an agency of the Gov­ has the responsibility, above everything else, of ernment, as the organizational unit designated maintaining the integrity of its operations as the by the Congress to review the operations of the Nation’s central bank. Reserve Banks. The record clearly shows the These audits not only serve to meet the re­ Board is continuing to fulfill this charter. sponsibility that the Congress has placed on the Federal Reserve but also serve to remove any doubt, throughout a world that uses the dollar THE FEDERAL RESERVE SYSTEM as a reserve and a vehicle of currency, as to AUDIT PROGRAM the integrity of the System’s accounts. This involves a full and prompt disclosure of Federal Let me briefly summarize our audit program. Reserve assets and liabilities and the assurance, First, we have audits of financial operations and given the powers conferred upon it by the legal compliance. Audits of this type are per­ Congress, that the Federal Reserve stands ready formed on an unannounced basis in the various and able to meet the commitments on its balance departments of each Reserve Bank and branch sheet at home and abroad. by the internal auditors on a frequency schedule In 1974 the Reserve Banks handled 21.8 agreed to by the System’s Conference of Gen­ billion pieces of currency and coin having a eral Auditors and approved by the Board’s staff. value of $63.9 billion. Of the 26 billion checks Also, once each year, the Board’s examiners written in 1974, 11.7 billion checks in the perform a financial examination in each Bank amount of $4.4 trillion, passed through the and branch, which includes a review of compli­ System. In addition, 14.5 million wire transfers, ance with approved procedures, policies, and which moved $30 trillion, were handled, and regulations. Thus, at least twice each year the 2.5 billion food coupons, having a value of $5.6 assets and liabilities of each Bank and branch billion, were redeemed and destroyed. To per­ are verified or confirmed. Going beyond this, form these functions as well as the numerous policies, procedures, and transactions are re­ transactions in securities,1 which also involve viewed at each location by internal auditors to evaluate how well the organization carries out xSee p. 295 for information on the volume of securi­ ties transactions. its programs and activities and how well it uses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 291 its financial, property, and personnel resources. ments. The following statement was included There is latitude in the scope of these reviews in the report prepared by the consultants: because it can always be expanded if conditions I am very impressed with the quality of warrant a review in greater depth. To provide the staff you have organized. They have a good appreciation of the balance needed further assurance, at least once in 3 years the between management concerns, audit re­ Board’s operations analysts review the operating quirements, and complex technical analysis functions of each Reserve Bank and each in the EDP area. We have worked with many organizations on EDP audits in the past few branch. These reviews are more than a routine, years. Your organization matches the very periodic check for their scope and frequency best that we have worked with in large reflect deficiencies observed by the Board’s fi­ commercial banks, financial institutions, and multidivisional corporations. I am pleased to nancial examiners, deficiencies or problems see that the Federal Reserve System is in reported by internal auditors, the occurrence of the forefront of this previously neglected, irregularities, conditions found at the previous but critical, area of EDP operational audit. review performed by the operations analysts, Another examination activity performed by requests from Bank management or Boards of the Board’s staff covers the internal audit Directors, and other situations. In most cases, departments in the Reserve Banks. Our staff not the reports comment on management attention, only reviews the monthly reports of audit activ­ planning, sufficiency and effectiveness of ities and findings prepared by the Bank’s Gen­ supervision, adequacy of staff, staff knowledge, eral Auditors but on-site visits are made to procedures employed, adequ^py of facilities, review and observe programs and practices. The and operating problems. Also, recommenda­ competence and effectiveness of the staff and tions are made to improve procedures either to supervisors are also appraised during these increase efficiency or to provide better controls. visits, and an evaluation is made concerning the H.R. 4316 provides specific authority for the independence of the General Auditor from Bank GAO to audit both the Federal Open Market management. Committee and the System Open Market Ac­ Organizationally the audit function in a Re­ count. The Committee by statute is exclusively serve Bank is independent of the Bank’s man­ a policy-making body. The Committee has de­ agement as the General Auditor is the only signated the Federal Reserve Bank of New York individual in a Bank, except for the President, to carry out transactions, including open market who reports directly to the Chairman of the operations in domestic securities markets and Board of Directors. In addition, each Bank’s in foreign currency transactions, for the 12 Board of Directors has an Audit Committee, Reserve Banks. The annual examination of the which meets frequently with the General Audi­ New York Bank includes a comprehensive ex­ tor to discuss his reports. Well before it was amination of the accounts relating to these a general practice for directors of private enter­ transactions. The internal auditors in the New prises to have an audit committee, the Reserve York Reserve Bank also conduct a continuous Banks had this feature in their organization. The audit of these transactions. Both the audits and independence of the General Auditor is further the examinations include procedures to deter­ strengthened by the fact that appointments to mine that open market operations are consistent the position are made by each Bank’s Board with directives from the Federal Open Market of Directors, not Bank management, and ap­ Committee. proved by the Board of Governors. Likewise, In the last few years, with the advent of salary adjustments for incumbents in the posi­ extensive use of computers, the Board’s staff tion are recommended by the Board of Directors and the audit departments in the Reserve Banks at each Bank and approved by the Board of have developed a comprehensive electronic data Governors. processing review procedure. In late 1974 the Thus, there are at least three lines of defense Board employed a nationally recognized con­ at the Reserve Banks against irregularities. The sulting firm to review our staff’s procedures and first is the operating management of the Bank; to make recommendations for further improve­ the second is the internal auditing staff directed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 Federal Reserve Bulletin □ May 1975 by the Bank’s Board of Directors; and the third and regulation of bank holding companies, truth is the examination staff, which works under the in lending, fair credit billing, equal credit op­ direction of the Board of Governors. Each of portunity, and “unfair or deceptive” practices these groups is also committed to improving by banks. We have also lived up to our assur­ operating effectiveness. ances to the Congress to reduce float in the From time to time Boards of Directors of payments mechanism. Through changes in reg­ individual Banks have also had public account­ ulations, improvements in the check trans­ ing firms review their auditing departments for portation system, and establishment of regional further assurance that the programs and person­ check processing centers and automated clearing nel are effective and up to date. In these cases, houses, the average daily payments mechanism the primary difference in the recommendations float has been reduced from $3.5 billion in 1969 made by the outside firms and those of the to $2.3 billion in 1974. Without the improve­ Board’s staff is that the Board’s staff has insisted ments initiated by the Federal Reserve System, on either more frequent or more in-depth audits the float would now be in the range of $5.6 than have the outside firms. billion. Even with the added assignments, the budget discipline imposed within the Federal Reserve System has held growth in its expenses to rea­ ECONOMY AND sonable dimensions. During the period 1970 EFFICIENCY OF OPERATIONS through 1973, total System expense growth Now let me comment on the System’s commit­ averaged 15 per cent per year. A report on ment to economy and efficiency of operations. Reserve Bank expenses for 1,974, which repre­ While the integrity of Federal Reserve System sented further improvement, was recently trans­ statements and accounts relating to assets, lia­ mitted to this committee and to the Senate bilities, and operations is of paramount impor­ Committee on Banking, Housing and Urban tance to the Board of Governors, the prospective Affairs. That report showed an increase in ex­ expenditures of the Banks also receive continu­ penses in 1974 of 12.1 per cent over the ex­ ous scrutiny and attention. Budgets are initially penses in 1973. We believe this is an excellent prepared by management in the Banks, under record in light of our expanding responsibilities general guidelines from the Board of Governors. and the cost trends in the economy. Moreover, The budgets are then reviewed by each Bank’s the System’s approved total expense budget for Board of Directors and adjusted if, in the judg­ 1975 represents a targeted increase of only 10.3 ment of the Directors, such adjustment is per cent above 1974 expenses. needed. The staff of the Board of Governors In addition to the programs carried on by also reviews the budgets and resolves issues internal auditing departments in the Reserve related to unusual requests and adherence to Banks and by the Board’s staff of operations guidelines. This review incorporates a detailed analysts for improving operating procedures and analysis of rates of expense growth in the Banks making them more effective and efficient, the arising from new initiatives, volume increases, Conferences of Reserve Bank Presidents and and increasing operating costs in order to satisfy First Vice Presidents have developed an effec­ the Board as to the reasonableness of the pro­ tive program that focuses upon improving the jected expenditures. Final approval, in light of efficiency of operations. Bank planning depart­ the foregoing review, is given by the Board of ments, inter-Bank operations research groups, Governors. and task forces with Board staff participation During recent years the volume of operations are working out most of the technological adap­ in the Reserve Banks has grown significantly, tations needed in the System’s electronic ac­ and several new areas of responsibilities have counting, automated currency handling, and been added to our workload. As you know, the electronic fund transfer systems. Outside con­ Congress has given the Federal Reserve in­ sultants are employed on an ad hoc basis as creased, or new, responsibilities for supervision needs develop. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 293 CAPACITY FOR Committee on Banking, Currency and Housing INDEPENDENT JUDGMENT will hold semiannual hearings in conjunction with its Senate counterpart to hear “the Board Let me say a word now about the need to of Governors’ and the Federal Open Market maintain the present capacity of the System to Committee’s objectives and plans with respect exercise, within the Government, its best judg­ to the ranges of growth or diminution of the ment regarding monetary policy without being monetary and credit aggregates in the upcoming unduly affected by external pressures. Even twelve months.” In short, the Congress has many who oppose this or that action of the established a policy “audit” of monetary policy Federal Reserve willingly concede that the in the most direct and responsible manner maintenance of independent judgment by the through the expedient of the congressional Nation’s central bank is essential if monetary oversight hearing. We have every confidence policy is to play its proper role in achieving that the two banking committees will do an economic stability and growth, a high level of exemplary job in overseeing monetary policy. employment, and stability in the purchasing (I should note that the first of these hearings power of the dollar. This independence is not was held on May 1.) absolute, of course. Since the Federal Reserve System is a creation of the Congress, the System is clearly accountable to the Congress, and we ACCESS TO attempt to meet our responsibilities to the CERTAIN INFORMATION Congress and the public fully and consci­ entiously. My final point goes to the System’s concern ESesides publishing more detailed information about the access by any outside organization to about its activities than any other central bank certain System records, operations, and trans­ in the world, the Federal Reserve furnishes a actions. These records include examination steady flow of information to the Congress. Our reports of commercial banks, transactions con­ release of data about Federal Reserve operations ducted with and on behalf of foreign central is continuous and wide-ranging, covering trans­ banks, and information about open market and actions on a daily, weekly, monthly, quarterly, lending operations. annual, and ad hoc basis. Members of the Board The record of the Federal Reserve in making testify frequently at congressional hearings on information relative to its operations available the System’s policies and operations, and the should demonstrate that we do not begin with Board responds promptly to the congressional any bias for secrecy per se. In fact, a great deal inquiries that come to us every working day. of effort is required to properly protect certain In the past, when requested, we have provided information. We recognize, too, that the GAO congressional committees, on a confidential now is accorded access to highly sensitive in­ basis, with volumes of materials pertaining to formation in the Department of Defense and in audit and examination procedures, as well as other departments and agencies and that no reports of examinations of Federal Reserve compromise of security results from these ar­ Banks. rangements. Nevertheless, we firmly believe It is clear that the Congress and its commit­ that there are compelling reasons that argue for tees have the right to inquire into the effec­ the maintenance of certain information—in the tiveness with which the System is discharging possession of the Federal Reserve—from access its responsibilities. And, as I have already by any outside organization. Public knowledge noted, today’s discussion occurs in a framework that the GAO—or anyone else—had review entirely different from that which prevailed in powers over such information could have an 1973 and 1974. By the adoption of House adverse effect on the bank supervisory process, Concurrent Resolution 133, the Congress has would alter our relationships with foreign gov­ established a systematic mechanism for the re­ ernments and central banks, and might necessi­ view of Federal Reserve monetary policy. tate a change in our open market and discount Under the terms of the resolution, the full functions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 Federal Reserve Bulletin □ May 1975 An audit by the GAO of foreign accounts held with the comparably large transactions that it by the Federal Reserve System, we believe, conducts on behalf of foreign monetary authori­ would jeopardize the existing relationships be­ ties. There would also be a reduced flow of tween foreign monetary institutions, the Federal financial information, and the relationships Reserve, and the U.S. Treasury. It could, as maintained with foreign financial institutions a result, aggravate the Nation’s international and governments could be harmed. financial relationships. A similar issue was discussed when legisla­ Foreign monetary authorities channel a sub­ tion (Public Law 91-599) was being considered stantial proportion of their dollar transfers and regarding audits of the Exchange Stabilization U.S. dollar reserve holdings through their ac­ Fund by the GAO. The following is quoted from counts with the Federal Reserve Banks. Nearly the hearings pertaining to that legislation: 130 foreign central banks, foreign governments, The Exchange Stabilization Fund deals in and international financial institutions have ac­ extremely confidential and highly sensitive monetary transactions with foreign govern­ counts with Federal Reserve Banks. These cor­ ments. It is important not only that such respondents held $60 billion of U.S. Treasury transactions and the arrangements underly­ and Federal agency securities in their accounts ing them remain confidential but also that nothing be done which would in any way at the end of 1974. During 1974 transactions impair the confidentiality of such transac­ in these securities through their accounts at the tions. The prospect of decisions of the Sec­ Reserve Banks totaled $85 billion. These trans­ retary of the Treasury with respect to trans­ actions through this Fund being subjected to fers and investments are often the counterpart possible public question and debate would of official foreign exchange intervention or offi­ undoubtedly be disturbing to markets and to cial reserve investment operations that reflect foreign governments, and would therefore hamper the use of the Fund by the Secretary sovereign actions and policies these authorities of the Treasury for its intended purpose. insist on keeping confidential. It is their explicit The Congress wisely recognized that foreign understanding that use of an account with a exchange operations and other aspects of inter­ Federal Reserve Bank maintains this confiden­ national financial policy must not be subject to tiality. Only those employees with a need-to- premature disclosure under any.circumstances. know have access to the information concerning The legislation exempted “information deter­ foreign transactions. Extreme care is taken in mined by the Secretary to be of an internation­ assigning either internal auditors or examiners ally significant nature” from audit by the GAO. from the Board of Governors, although no We believe providing the; GAO access to compromises in the sufficiency of the audits are “reports of examination of member banks, from tolerated. whatever source,” as H.R. 4316 would do, Just what action the foreign central banks, could reduce the flow and change the character foreign governments, and international financial of communications essential to effective bank institutions might take if the confidential status supervision. It should be emphasized that al­ of accounts with Reserve Banks were not main­ though the Federal Deposit Insurance Corpora­ tained cannot be predicted with certainty. It is tion is audited by the GAO, reports of exami­ probable, however, that their use of accounts nation of insured banks are properly exempt at the Federal Reserve Banks would be consid­ from the scope of the audit authority. Neither erably curtailed. They might even change the does the GAO have access to reports of exami­ composition of their reserve holdings so that the nations conducted by the Comptroller of the dollar assets would be a smaller part. Currency. Enactment of H.R. 4316, as it is Action that resulted in transferring the in­ presently worded, could give the GAO access vestments of foreign official institutions to non­ to reports of examination prepared not only by governmental financial institutions would make the Federal Reserve but also by the other super­ it more difficult for the Federal Reserve System visory agencies. We strongly oppose providing to conduct its open market operations because such access to the GAO. In this connection, I the Federal Reserve would no longer be able might note that H.R. 10265, as reported by the to coordinate its own very large transactions full committee in 1973, provided an explicit and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 295 complete exemption for both transactions con­ quires very candid communications between the ducted on behalf of foreign central banks and borrowing bank and the Reserve Bank with examination reports of member banks. respect to problems a bank may be encountering We also believe it would be unwise to allow in its day-to-day operations and the specific access to specific files and memoranda contain­ strategies that it plans to follow to remedy its ing information relating to Federal Reserve difficulties. Because the information required Bank lending cases. It has long been an estab­ from borrowing banks is sensitive, we strongly lished practice in the field of banking that private oppose providing anyone access to these files information relating to a borrower and made except those charged with the responsibility for available to the lending institution is held in the lending function. strictest confidence. This practice is founded on At a time when financial markets are already the very sound principle that the lender should nervous, when citizens of this country are fear­ have access to all the information it needs to ful of the inflationary impact of the growing make a prudent lending decision without expos­ Federal deficit, and when foreign central banks ing the borrowers’ private, internal plans and are looking to the Federal Reserve for leadership operations to scrutiny by its competitors or the in international financial matters, enactment of public. As with other forms of banking, lending this legislation would be particularly unfortu­ to a member bank requires the borrower to nate. We see no need to risk damaging effects provide confidential information on its financial upon our efforts toward international financial condition and internal operations as well as negotiations or to risk reinforcing the financial certain plans. Administration of such credit re­ uncertainties at home. □ BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM: STAFF MEMORANDUM S ecurities T ransactions of Federal R eserve B anks In 1974 the Federal Reserve Banks issued, re­ reversing enables the market to avoid possible deemed, and exchanged U.S. Government securi­ misinterpretation of System activities. ties valued at $3.08 trillion. Volume of System Open Market Operations The bulk of System open market operations are for the purpose of offsetting the potentially desta­ Transactions in Government Securities in 1974 bilizing market impact of short-term variations in (In millions of dollars) member bank reserves arising from such technical factors as movements in bank float and changes Type Amount in the Treasury deposit balance at Federal Reserve Banks. To achieve this purpose, the Federal Re­ Repurchase agreements .................................................... 108,147 Matched sale-purchase transactions ........................... 64,228 serve makes extensive use of repurchase agree­ Outrights: ments and matched sale-purchase transactions. Treasury bills— Purchases ...................................................................... 11,659 The volume of such transactions in 1974 amounted Sales ................................................................................ 5,829 to somewhat more than $172 billion (or twice that Treasury notes and bonds— Purchases ...................................................................... 1,746 if both the sale and purchase are included), or Sales ................................................................................ ........ Redemptions ................................................................ ........ about 88 per cent of the total of system open Federal agencies— market transactions of approximately $195 billion. Purchases ...................................................................... 3,087 Sales ................................................................................ 3 When the System uses repurchase agreements and Total .......................................................................... 194,699 matched sale-purchase transactions, market par­ ticipants immediately understand that the System Note.—Data for repurchase agreements and matched is only temporarily supplying (absorbing) reserves, sale-purchase transactions reflect the initial side of these trans­ and that this process will be reversed in a short actions only. Thus, for example, the total for repurchase agreements is the sum of purchases made by the System under period. such contracts, and it does not include the subsequent resale The knowledge that the process is self- of securities back to their original owners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 Federal Reserve Bulletin □ May 1975 Statement by Robert C. Holland, Governor, markets. Furthermore, many customers who Board of Governors of the Federal Reserve have borrowed from banks also have ready System, before the Committee on Banking, access to other sources of credit. Thus, if a Currency and Housing, U.S. House of Repre­ particular customer, or class of customer, were sentatives, May 12, 1975. to be denied access to bank credit, he might well be able to obtain funds in the open market I am pleased to meet with this committee to or from other institutional lenders. present the views of the Board of Governors On first glance it might seem that if certain of the Federal Reserve System on H.R. 6676. bank customers were to be diverted to the mar­ This bill would establish a program of manda­ ket, more funds would be left in the bank for tory reporting on the volume of commercial lending to higher-priority users or to those not bank credit channeled to various categories of having access to nonbank sources. However, credit that are designated as national priorities. banks must compete in the market for funds like It raises serious and complex issues that extend anyone else. To the extent that former bank to the fundamental structure of our economic customers would also turn to the open market system and to our Nation’s primary reliance on for financing, interest rates would tend to rise, market processes to resolve the allocation of raising the cost of funds to banks and reducing credit among competing uses. their willingness to lend, except at higher loan The stated purpose of the bill is “to maximize rates and on stiffer nonprice terms. Thus, look­ the availability of credit for national priority ing at the results in credit markets as a whole, uses.” Although the bill does no more than designated priority credit users at commercial establish a mandatory reporting system at this banks might well find that the cost of funds had time, it could facilitate later efforts to impose risen and the availability had’become limited. mandatory credit controls and, by the force of Efforts to deal with these shortcomings would what is perceived as congressional intent, it ultimately require a credit control program might well influence current lending policies at going beyond the banks and encompassing all banks. In any event, the bill is likely to be suppliers of funds. Such a comprehensive credit construed by the market as a first step in the control program is just not feasible in this direction of a credit allocation program that country, at least in peacetime. Controls would could ultimately supplant the decision-making need to include not only banks but also other processes of the private market. In the Board’s institutional lenders, such as mutual savings view, moving in this direction would represent banks, savings and loan associations, finance a grave error for no good substitute has been companies, insurance companies, and pension found for our highly developed and intensely funds. The open markets for debt and equity competitive private financial markets in distri­ securities would need to be covered, not to buting credit resources. mention the network of trade credit. Moreover, Any governmental program for allocating borrowers’ access to credit obtained from credit on a priority basis at commercial banks abroad would have to be regulated. would be subject to serious problems. There is, Any attempt to impose a comprehensive first of all, the fundamental question of choosing credit allocation program would disrupt the or­ which specific credit uses should be accorded derly processes of financial markets and could a “national priority” designation and which well lead to imbalances in the markets for goods should be denied it. Second, borrowing at and services. The present bill, of course, does banks—which is all that is covered by this not establish such a program. The basic diffi­ bill—represents only one, highly variable, part culty, however, is that market participants may of the total flow of credit being channeled into come to believe that it will lead to over-all, various uses by our financial system. For ex­ mandatory credit controls or, at a minimum, to ample, over the last 5 years banks have pro­ controls on banks alone. When and as this vided, on average, about three-eighths of the conviction becomes strong among private bor­ total nonfinancial funds raised in our credit rowers, they would be likely to protect them­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 297 selves by borrowing substantial sums in antici­ smaller over-all demands for credit that they are pation of their future credit needs. Such actions now experiencing. would tend to exert upward pressure on interest The banks surveyed have cooperated very rates and would tend to work to the disadvantage well in these two surveys. In developing the of borrowers with limited flexibility—such as questions for the surveys, the Board has had homebuyers, small businesses, and consumers. to take into account the practical availability of Given the possibility that this bill will be information at banks and the desirability of interpreted as a step in the direction of manda­ avoiding heavy administrative and cost burdens. tory credit allocation, the Board believes that Most of the material obtained has been qualita­ the bill should not be enacted. To the extent tive rather than quantitative in nature because that the collection of information on credit uses the banks simply are unable to provide actual from commercial banks is necessary, the Board dollar figures without reviewing and reclassify­ believes that it should continue to be on a ing all of their loans. That would be a very voluntary basis. costly process. The Board has already been collecting some The Board could, of course, revise the ques­ credit use information from a sample of about tionnaire to seek quantitative data on a voluntary 125 large banks. The initial survey was under­ basis should the Congress so direct. But it must taken in January of this year and was designed be kept in mind that the resulting information— to determine how banks had adapted their lend­ though appearing to be hard numbers—might ing policies in light of a statement issued by not be of much value for the public purposes the Federal Advisory Council in September being sought. 1974. (See the Federal Reserve for Our long experience in data collection indi­ B u lletin March 1975, pages 129 and 130, for a summary cates that it is difficult to define lending cate­ of responses to the initial survey.) gories that can be related in a meaningful way The initial survey showed that banks contin­ to customer uses of the funds borrowed. Money ued to respond to the expressed credit needs of is an all-purpose commodity. Virtually all bor­ businesses, homebuilders, and individuals. The rowers have funds that become available from number of loan requests for financial or specu­ a variety of sources, and they make expenditures lative purposes had dropped off to a much lower for a variety of purposes. It is difficult to sort level than usual, and 90 per cent of the banks these various sources and uses of funds into reported that they had approved either none at particular pockets, even when both borrowers all or a significantly smaller-than-normal and lenders have the best intentions. But when proportion of such applications. one kind of credit use is indicated to be preferred The Federal Advisory Council’s statement over another, both parties to the loan transaction was issued during a period of monetary re­ will tend to take advantage of the fungibility straint, and economic and financial conditions of money to classify the purpose as being for have, of course, changed considerably since the preferred use. then. A second survey, on which we made some This is a shortcoming of any system of loan modifications in light of our experience with the classification by purpose. But the loan classifi­ first survey, was conducted in April. We do not cations for indicated priority uses contained in have a complete tabulation of responses yet, but this bill involve other difficult definitional and I can report that about three-fifths of the interpretive problems as well. In many cases, respondents in our latest survey found that for example, the definitions could be interpreted problems of allocating credit at their individual as involving the need for subjective judgments banks were significantly less than in the fall of on the part of banks—such as deciding which last year. In the January 1975 survey only loans represent funds for ‘ 'essential structures one-third had so indicated. Allocation of credit and equipment” or for “uses essential to or­ among competing creditworthy borrowers is derly functioning of markets.” These judgments clearly fading as a problem at our banks, re­ would be likely to differ bank by bank so that flecting both the larger inflows of funds and the the reported results could mean little in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 Federal Reserve Bulletin □ May 1975 aggregate. Moreover, if the banks utilize na­ monetary policy is attempting to stimulate eco­ tional priority categories as a basis for discrim­ nomic recovery. Indeed, the results of the inating among borrowers, the subjectivity of Board’s two voluntary surveys of bank lending interpretation could lead to inequitable treatment policies suggest that there is little or no further of borrowers as some banks apply stricter economic and financial need for such surveys standards than others. under prevailing circumstances. There is also a practical problem at this mo­ For the various reasons I have noted, the ment—H.R. 6676 might adversely affect the Board is unable to support this or any other bill urgently needed economic recovery. The bill’s related to mandatory reporting of bank credit mandated questionnaire on national priority uses accommodation along explicit or implied prior­ of credit, under current circumstances, could ity lines. The Board as a general matter believes have counter-productive effects in terms of that if any information on credit use is to be stimulating economic recovery. It would create collected, it should be done on a voluntary basis uncertainties at banks as to interpretation. It and tailored to what a voluntary reporting effort would run the risk that some banks, already in would support in order to minimize possibilities a cautious frame of mind, might hold back on of market misinterpretation. If the Congress approving some otherwise sound credits for fear nevertheless feels that it is essential to pass this that they might be inconsistent with the priority kind of legislation, the Board would strongly scheme. suggest that the categories not be termed “na­ Thus, it is doubtful, in the Board’s view, tional priority uses of credit” because this whether such a survey of credit allocation is could, under current circumstances, discourage desirable at this time when private credit de­ some lending and in that degree retard economic mands on banks are extremely weak and when recovery. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

299 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON MARCH 18, 1975 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services was continuing to fall sharply in the first quarter of 1975, that the rise in prices was moderating, and that nominal GNP was declining. Staff projections, like those of a month earlier, suggested that real economic activity would recede further in the second quarter and that price increases would continue to moderate; they also suggested that activity would turn up later in the year. In February retail sales had risen slightly, according to the advance estimate. Largely because of continuing efforts by business to liquidate inventories, however, cutbacks in production were again substantial and widespread. Curtailments in employment also were substantial, particularly in manufacturing establishments, and the factory workweek was reduced sharply. Although unemploy­ ment rates increased for adult males and heads of households, the over-all rate was unchanged, at 8.2 per cent, as the civilian labor force declined sharply. The advance in the index of average hourly earnings for private nonfarm production workers accelerated somewhat in February, but it remained considerably less rapid than in the spring and summer of last year. Wholesale prices of industrial commodities again increased moderately—although the rise in prices of both consumer and producer finished goods slowed—and wholesale prices of farm and food products declined sharply further. In January, as in December, the increase in the consumer price index had not been so large as in most months in 1974. Staff projections suggested that the decline in real GNP would not be nearly so sharp in the second quarter as in the first, in large part because of the behavior of business inventories; it was anticipated that inventories, after shifting from heavy accumulation in the fourth quarter of 1974 to substantial liquidation in the current quarter, would decline at only a moderately faster pace in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Federal Reserve Bulletin □ May 1975 second quarter. The extent of the inventory liquidation expected in the first half—along with the improved conditions in credit markets and the stimulative fiscal measures in prospect— strengthened the probabilities of an upturn in economic activity in the second half. Exchange rates for the dollar against leading foreign curren­ cies—which had rallied in early February, owing in part to official intervention purchases of dollars—declined during the remainder of the month. However, the dollar strengthened again in early March, as short-term interest rates abroad continued to decline relative to rates in the United States and as market attitudes toward the dollar were improved somewhat by, among other things, moderation of the rise in U.S. prices. In January the U.S. foreign trade deficit had been only moderately above the rate in the fourth quarter of 1974, despite a large bulge in recorded imports of oil in advance of the February 1 increase of $1 per barrel in import fees. Net outflows of capital reported by banks continued large as foreigners drew down deposits in U.S. offices. Total loans and investments at U.S. commercial banks grew very little from the end of January to the end of February. Outstanding bank loans to business declined, as business demands for short-term credit remained weak both at banks and in the commercial paper market. Consumer loans at banks also declined, while real estate loans edged up. Bank holdings of U.S. Government securities expanded sharply. The narrowly defined money stock (M*)—which had expanded at an annual rate of about 4.5 per cent in the fourth quarter of 1974 and then had declined at a rate of about 9 per cent in January—grew at a rate of about 7 per cent in February. Net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions were particularly large, and broader measures of the money stock (M2 and M3) increased at substantial rates. Banks reduced the outstanding volume of large-denomination CD’s and Euro-dollar borrowings, reflecting the growth in demand deposits and in time deposits other than CD’s as well as the weakness in loan demand. System open market operations since the February 19 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with more rapid growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 301 in monetary aggregates over the months ahead than had occurred in recent months, while taking account of developments in domestic and international financial markets. Accordingly, operations had been directed toward a gradual further easing in bank reserve and money market conditions. The Federal funds rate, which had averaged 6lA per cent in the statement week ending February 19, had declined to about 5V2 per cent in the days preceding this meeting. Private short-term market interest rates declined a little further over the inter-meeting period, in response to the easing in money market conditions and the weakening in private demands for short­ term credit, but the declines were small, as market participants apparently came to expect that money market conditions would not ease much further in the near future. Treasury bill rates rose somewhat over the period despite strong demands for bills because the Treasury had enlarged the supply in the weekly and monthly auctions. On the day before this meeting the market rate on 3-month Treasury bills was 5.39 per cent, compared with 5.32 per cent on the day before the last meeting. Effective March 10, Federal Reserve discount rates were reduced from 6%. to 614 per cent at 10 Reserve Banks; shortly thereafter, rates were reduced at the remaining 2 Banks. Yields on longer-term bonds increased during the inter-meeting period, in response to continuation of a large volume of offerings. On February 24 the Treasury announced that over the period to mid-April it would raise about $7 billion in new cash by auctioning coupon issues. Public offerings of corporate bonds remained heavy in February, and a substantial increase was in prospect for March. Actual and prospective offerings of State and local government issues during March and April also were large; in addition, the market for such securities was being adversely affected by the financial problems of a major State corporation. In the home mortgage market, yields declined somewhat further. 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 be weak in the near term—in association with the expected weakness in economic activity—and that money market conditions would have to ease Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin □ May 1975 slightly further in the period immediately ahead if Mx were to grow at a rate consistent with the Committee’s longer-run objectives for the monetary aggregates. Some further increase in net inflows of consumer-type time and savings deposits to banks and to nonbank thrift institutions was anticipated, in response to lower short-term interest rates. While private demands for short-term credit were likely to remain weak, the Treasury would be borrowing sizable amounts of new cash over the months ahead. The Committee decided that growth in Mt and M2 over the March-April period at annual rates within ranges of tolerance of 5 to 7Vi per cent and 8 to 10 per cent, respectively, would be consistent with its longer-run objectives for the monetary aggre­ gates. The members concluded that such growth rates would be likely to involve growth in reserves available to support private nonbank deposits (RPD’s) within a range of 3% to 5Vi per cent. They 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 43A to 5% per cent, if necessary, in the course of seeking monetary growth rates within the ranges speci­ fied. The members also agreed that in the conduct of operations, account should be taken of developments in domestic and interna­ tional 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 February industrial production and employment declined substantially further. The unemployment rate was unchanged, at 8.2 per cent, as the civilian labor force declined sharply. Average wholesale prices of industrial commodities rose moderately again in February, and prices of farm and food products declined sharply further. The advance in average wage rates, although large, re­ mained well below the increases of last spring and summer. The foreign exchange value of the dollar declined in February, but it strengthened somewhat in early March, as short-term interest rates abroad fell further and as market attitudes toward the dollar improved somewhat. In January the U.S. foreign trade deficit was only moderately above the rate in the fourth quarter of 1974 despite a large bulge in recorded imports of oil. Net outflows of capital reported by banks continued large as foreigners withdrew deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 303 The narrowly defined money stock, which had declined sharply in January, expanded considerably in February, and broader meas­ ures of the money stock grew at substantial rates. Net inflows of consumer-type time and savings deposits were particularly large. Large-denomination CD’s outstanding contracted in February and total bank credit showed little net change. Business demands for short-term credit remained weak, both at banks and in the commer­ cial paper market, while demands in the long-term market continued exceptionally strong. Since mid-February short-term market interest rates have declined a little while longer-term yields have risen. Federal Reserve discount rates were reduced from 63A to 6Va per cent in early March. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ ducive to stimulating economic 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, Baughman, Coldwell, Holland, MacLaury, Mayo, Mitchell, and Wallich. Votes against this action: Messrs. Bucher, Eastburn, and Sheehan. Messrs. Bucher, Eastburn, and Sheehan dissented from this action because they believed that the economic situation and out­ look together with recent slow growth in the monetary aggregates called for more aggressive efforts in the near term to achieve the Committee’s longer-run objectives for the aggregates. In particular, they favored higher upper limits on the 2-month ranges of tolerance for the monetary aggregates and a lower inter-meeting range for the Federal funds rate than adopted by the Committee. Subsequent to the meeting, on March 27, the available data suggested that in the March-April period the annual rates of growth in both and M2 would be above the upper limits of the ranges of tolerance that had been specified by the Committee. During the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin □ May 1975 latest statement week the Federal funds rate had averaged about 5% per cent. In light of the behavior of the aggregates, the System Account Manager would, under normal circumstances, have per­ mitted the weekly average Federal funds rate to rise to the upper limit of its range of tolerance—namely, 5% per cent. However, members of the Committee—with the exception of Mr. Sheehan— concurred in the Chairman’s recommendation of March 27 that, in view of the weakness in the economy and of the sensitive conditions in financial markets, particularly bond markets, the Manager be instructed to treat 5Vi per cent as the approximate upper limit for the weekly average funds rate for the time being. Mr. Sheehan did not concur because he believed that, in light of past shortfalls in monetary growth and of sensitive conditions in the bond market, the Committee should continue its easing posture by gradually reducing the funds rate. 2. Authorization for Domestic Open Market Operations On March 10 Committee members had 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. This action had been taken on the recommendation of the Account Manager, who had advised that he would recommend restoration of the $1 billion limit as soon as it appeared reasonable to do so. In view of the likelihood that the higher limit would be required from time to time over coming months, the Committee voted at today’s meeting to maintain the limit at $2 billion for a period of 1 year, unless in the interim the Committee decided otherwise. Votes for this action: Messrs. Burns, Hayes, Baughman, Bucher, Coldwell, Eastburn, Mac- Laury, Mayo, Mitchell, Sheehan, and Wallich. Vote against this action: Mr. Holland. Mr. Holland dissented from this action because he preferred to tailor the ceiling more closely to changing needs on a month-tomonth basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 305 3. Review of Continuing Authorizations This being the first meeting of the Federal Open Market Committee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1975, and their assumption of duties, the Committee followed its customary prac­ tice of reviewing all of its continuing authorizations and directives. The Committee reaffirmed the Authorization for Domestic Open Market Operations, the Authorization for Foreign Currency Opera­ tions, and the Foreign Currency Directive in the forms in which they were presently outstanding. Votes for these actions: Messrs. Burns, Hayes, Baughman, Bucher, Coldwell, Eastburn, Holland, MacLaury, Mayo, Mitchell, Sheehan, and Wallich. Votes against these actions: None. * 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

306 Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS AND 204.3(a)(2), and deficiencies under this paragraph FOREIGN ACTIVITIES OF NATIONAL shall be subject to § 204.3(b).8 BANKS 8The term “computation period” in § 204.3(a)(3) and (b) shall, for this purpose, be deemed to refer to each week of The Board of Governors has approved amend­ a maintenance period under this paragraph. ments to Regulation D, Reserves of Member 213.7 Section — R eserves A gainst Foreign Banks, and to Regulation M, Foreign Activities B ranch D eposits. of National Banks, to reduce from 8 per cent to 4 per cent the reserve requirement on member (a) Transactions with parent bank. During banks’ Euro-dollar borrowings and foreign branch each week of the four-week period beginning May loans to United States residents. 22, 1975, and during each week of each successive four-week (“maintenance”) period, a member AMENDMENTS TO REGULATIONS D bank having one or more foreign branches shall AND M maintain with the Reserve Bank of its district, as a reserve against its foreign branch deposits, a Effective May 22, 1975, Sections 204.5(c) of daily average balance equal to 4 per cent of the Regulation D and 213.7 of Regulation M are daily average total of— amended to read as follows: (1) net balances due from its domestic offices Section 204.5 — R eserve R equirem ents to such branches, and (2) assets (including participations) held by such branches which were acquired from its domestic (c) Reserve percentages against certain depos­ offices (other than assets representing credit ex­ its by foreign banking offices. Deposits repre­ tended to persons not residents of the United sented by promissory notes, acknowledgements of States), during the four-week computation period advance, due bills, or similar obligations described ending on the Wednesday fifteen days before the in § 204.1(f) to foreign offices of other banks,7 beginning of the maintenance period. or to institutions the time deposits of which are (b) Credit extended to United States resi­ exempt from the rate limitations of Regulation Q dents. During each week of the four-week period pursuant to § 217.3(g) thereof, shall not be subject beginning May 22, 1975, and during each week to paragraph (a) of this section or to § 204.3(a)(1) of each successive four-week maintenance period, and (2); but during each week of the four-week a member bank having one or more foreign period beginning May 22, 1975, and during each branches shall maintain with the Reserve Bank of successive four-week (“maintenance”) period, a its district, as a reserve against its foreign branch member bank shall maintain with the Reserve deposits, a daily average balance equal to 4 per Bank of its district a daily average balance equal cent of the daily average credit outstanding from to 4 per cent of the daily average amount of such such branches to United States residents7 (other deposits during the four-week computation period 7 (a) Any individual residing (at the time the credit is ex­ ending on the Wednesday fifteen days before the tended) in any State of the United States or the District of beginning of the maintenance period. An excess Columbia; (b) any corporation, partnership, association or other entity organized therein (“domestic corporation”); and or deficiency in reserves in any week of a main­ (c) any branch or office located therein of any other entity tenance period under this paragraph shall be sub­ wherever organized. Credit extended to a foreign branch, ject to § 204.3(a)(3), as if computed under § office, subsidiary, affiliate or other foreign establishment (“foreign affiliate”) controlled by one or more such domestic corporations will not be deemed to be credit extended to a 7 Any banking office located outside the States of the United United States resident if the proceeds will be used in its foreign States and the District of Columbia of a bank organized under business or that of other foreign affiliates of the controlling domestic or foreign law. domestic corporation(s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 307 INTERPRETATION OF REGULATION M than assets acquired and net balances due from its domestic offices) during the four-week compu­ Under the third paragraph of section 25 of the tation period ending on the Wednesday fifteen days Federal Reserve Act, as amended (12 U.S.C. before the beginning of the maintenance period: 601), any national banking association1 possessing Provided, That this paragraph does not apply to a capital and surplus of $1,000,000 or more may credit extended (1) in the aggregate amount of file application with the Board for permission, $100,000 or less to any United States resident, upon such conditions and under such regulations (2) by a foreign branch which at no time during as may be prescribed by the Board, “to acquire the computation period had credit outstanding to and hold, directly or indirectly, stock or other United States residents exceeding $1 million, (3) evidences of ownership in one or more banks to enable the borrower to comply with the re­ organized under the law of a foreign country or quirements of the Office of Foreign Direct Invest­ a dependency or insular possession of the United ments, Department of Commerce,8 (4) under States and not engaged, directly or indirectly, in binding commitments entered into before May 17, any activity in the United States except as, in the 1973, or (5) to another member bank that will be judgment of the Board shall be incidental to the maintaining reserves on such credit under § international or foreign business of such foreign 204.5(c) of Regulation D. bank; and, notwithstanding the provisions of sec­ tion 23A of the Federal Reserve Act (12 U.S.C. INTEREST ON DEPOSITS 371c), to make loans or extensions of credit to or for the account of such bank in the manner The Board of Governors has amended its Regu­ and within the limits prescribed by the Board by lation Q to prohibit member banks from accepting general or specific regulation or ruling.” deposits subject to negotiable order of withdrawal Pursuant to its authority under the third para­ (NOW) from governmental units. graph of section 25 of the Federal Reserve Act, AMENDMENT TO REGULATION Q the Board has promulgated section 213.4 of this part (Regulation M), which sets forth appropriate Effective May 16, 1975, Section 217.1(e)(3) of conditions and limitations on a member bank’s Regulation Q (12 CFR 217) is amended to read acquisition and holding, directly or indirectly, of as follows: the stock or other evidences of ownership in one or more foreign banks, and section 213.5 of this Section 217.1— D efinitions part which allows a member bank, which holds directly or indirectly2 stock or other evidences of ownership in a foreign bank, to make loans or (e) Savings deposits. extensions of credit to or for the account of such foreign bank without regard to the provisions of section 23A of the Federal Reserve Act (12 U.S.C. 371c). (3) In those States where banks are permitted In several recent applications filed with the to offer deposits subject to negotiable orders of Board by member banks under section 25 of the withdrawal, such deposits may be maintained if Act, the issue has arisen as to whether particular such deposit consists of funds deposited to the foreign institutions can be considered as foreign credit of or in which the entire beneficial interest banks for the purposes of section 25 of the Act is held by one or more individuals, or of a cor­ and sections 213.4 and 213.5 of this part. While poration, association, or other organization the Board has by regulation defined the term operated primarily for religious, philanthropic, “foreign bank” to mean a bank organized under charitable, educational, fraternal, or other similar the law of a foreign country and not engaged, purposes, and not operated for profit. Any deposit directly or indirectly, in any activity in the United account subject to negotiable orders of withdrawal States except as, in the judgment of the Board, established prior to May 16, 1975, which consists shall be incidental to the international or foreign of funds deposited to the credit of or in which business of such foreign bank,3 such definition the entire beneficial interest is held by a govern­ mental unit not qualifying herein may be main­ Paragraph 20 of section 9 of the Federal Reserve Act (12 tained through December 31, 1975. U.S.C. 335) also makes the provisions of section 25 applicable to State member banks. 2 Whether through a corporation operating under section 25 of the Act or organized under section 25(a) of the Act, or 8The branch may in good faith rely on the borrower’s otherwise. certification that the funds will be so used. 3 Section 213.2 of this part. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Federal Reserve Bulletin □ May 1975 imposes the statutory limitation on activities in the In the Board’s judgment, a foreign bank for United States that can be conducted by a foreign purposes of section 25 of the Act and sections bank, the shares of which are owned by a member 213.4 and 213.5 of this part should be interpreted bank, and does not define as a threshold matter to mean, with certain limited exceptions herein­ which foreign institutions can be considered as after described, a foreign institution that is foreign banks eligible for investment and Board principally engaged in a commercial banking exemption from the provisions of section 23A business. The Board believes that such an inter­ under section 25 of the Act. pretation is consonant with the limited purposes Congress in the third paragraph of section 25 of section 25 and accords with Congress’ intent of the Act has imposed incorporation and other in enacting that section. This interpretation will requirements intended to ensure that a foreign bank apply both for purposes of determining permissible acquired under that section is not engaged in a investments for member banks under section 213.4 domestic banking business. Congress did not, of this part and for purposes of the regulatory however, specify in section 25 the criteria a exemption from the provisions of section 23 A foreign institution must satisfy in order to be under section 213.5 of this part. In adopting this considered a foreign bank for purposes of that interpretation, however, the Board has determined section.4 The third paragraph of section 25 was that, in general, certain minimum criteria should enacted in 1966 in order to give member banks be met in every case. Accordingly, in order for organizational flexibility in conducting their bank­ a foreign institution to be considered as principally ing operations abroad. Prior to its enactment, the engaged in a commercial banking business, the Board had interpreted the “stock purchase” pro­ institution must, at least, receive deposits to a hibitions of Section 5136 of the Revised Statutes substantial extent in the regular course of its busi­ as preventing member banks from acquiring di­ ness, and also have the power to accept deposits rectly the shares of foreign banks. Thus, until that that the depositor has a legal right to withdraw time, member banks were limited to conducting on demand. In addition, the Board believes that their banking operations abroad either through for a foreign institution to be considered as a branches established under section 25 or through foreign bank under section 25, the institution agencies, branches or subsidiaries of their Edge should also be supervised, regulated, examined or or Agreement Corporations established, respec­ otherwise recognized as a commercial bank by the tively, under section 25(a) or section 25 of the appropriate bank supervisory or monetary author­ Federal Reserve Act. Because the laws of some ity of either the country of its organization or the foreign countries prevented the establishment of country of its principal banking operations. branches and because the holding of shares of The Board has also determined, however, that foreign banks through Edge or Agreement Cor­ notwithstanding the above test and minimum cri­ poration subsidiaries resulted in an unnecessary teria, foreign institutions organized for the sole layering of organizational relationships, the enact­ purpose of holding the shares of a foreign bank, ment of the third paragraph of section 25 essen­ or organized for the sole purpose of performing tially was intended to allow member banks to hold nominee, fiduciary, or other banking services in­ directly the shares of foreign banks, instead of cidental to the activities of a foreign branch or holding them indirectly through their Edge or banking affiliate of a member bank may be con­ Agreement Corporation subsidiaries.5 The provi­ sidered as foreign banks for purposes of section sion in that paragraph which gives the Board the 25 and sections 213.4 and 213.5 of this part. The power to waive the restrictions of section 23A on Board may recognize other exceptions to the cri­ loans or extensions of credit from a member bank teria adopted in this general interpretation if it to its foreign bank affiliate was supported by the determines that any such exception would not be Board because section 23A in such circumstance inappropriate under section 25 of the Federal Re­ tends to restrict normal correspondent banking serve Act and this part (Regulation M). relationships between banks and their foreign bank INTERPRETATION OF REGULATION Q affiliates. 4 While the term “bank” is defined in section 1 of the Federal INTEREST ON DEPOSITS Reserve Act (12 U.S.C. 221), that definition . . State bank, banking association, and trust company” is not applicable in The Board of Governors has been asked to the context of section 25. reconsider its view, adopted in 1936, that a mem­ 5See 112 Cong. Rec. 11866 (1966) (remarks of Senator Robertson). ber bank may not permit a depositor to withdraw Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 309 funds from his savings account by means of a The Board recognizes that the telephone has telephone or other oral order (1936 Fed. Res. become an accepted medium for transmitting fi­ Bulletin 624). That position was based upon the nancial data and that the telephone merely provides Board’s concern for member bank security and the customer with an additional method of com­ also upon its concern that unrestricted telephone municating instructions regarding his account to access to savings accounts might lead depositors his bank. In fact, numerous other depository insti­ to treat such accounts as extensions of their tutions including nonmember commercial banks checking accounts and destroy the distinction be­ and savings and loan associations have for some tween the accounts. time been permitted to offer telephone withdrawal The Board has studied the telephone withdrawal services. systems currently being developed by several Therefore, the Board withdraws its policy member banks and feels that the security and rec­ against the offering of telephone withdrawal serv­ ord-keeping devices made possible by new tech­ ices while advising member banks to safeguard nology and incorporated into these systems will such transfers with proper procedures and internal keep errors and unauthorized use to a minimum. control. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF BANK agency each in New York City and San Francisco, HOLDING COMPANY ACT and owns The Bank of Nova Scotia Trust Com­ pany, New York, New York, a New York State The Bank of Nova Scotia, chartered trust company, which has approximately Toronto, Ontario $1 million in deposits. Upon becoming a bank Order Approving Formation of Bank holding company, Applicant has indicated that it Holding Company will file applications under section 4 of the Act The Bank of Nova Scotia, Toronto, Ontario, to retain its interest in The Bank of Nova Scotia Canada, has applied for the Board’s approval Trust Company, and The Nova Scotia Corpora­ under § 3(a)( 1) of the Bank Holding Company Act tion, New York, New York, a dormant shell (12 U.S.C. 1842(a)(1)) of formation of a bank corporation. holding company through acquisition of 75 per Bank, with deposits of $87 million at December cent or more of the voting shares of Banco Mer- 31, 1974, is organized under the laws of the cantil de Puerto Rico, Inc., San Juan (Rio Pie- Commonwealth of Puerto Rico and operates one dras), Puerto Rico (“Bank”). branch office each in Rio Piedras, Santurce, and Notice of the application, affording opportunity Ponce, and has received a conditional license to for interested persons to submit comments and establish a fourth office at Hato Rey. In terms of views, has been given in accordance with § 3(b) deposits at December 31, 1973, Bank ranked 10th of the Act. The time for filing comments and views among 14 nongovernment-owned commercial has expired, and the Board has considered the banks operating in Puerto Rico. Bank has a application and all comments received in light of wholly-owned subsidiary, Bankmerc Investment the factors set forth in § 3(c) of the Act (12 U.S.C. Group, Inc., Hato Rey, Puerto Rico, engaged in 1842(c)). leasing activities, which Applicant will seek to Applicant, a Canadian commercial bank char­ retain under section 4 of the Act after consumma­ tered under the Bank Act of Canada, has 982 tion of the proposed acquisition. offices located in Canada and abroad and controls Applicant and Bank are presently two of the approximately $12.1 billion of deposits.1 Appli­ smaller competing banks in the San Juan banking cant has been doing business in Puerto Rico for market,3 where the four largest banks control ap­ 65 years and operates four branches there with proximately 71.6 per cent of the market’s $2.3 deposits aggregating $80.5 million, ranking Ap­ billion of deposits.4 Applicant ranks ninth in the plicant, in terms of deposits, as the ninth largest market with approximately 3.1 per cent of the bank in Puerto Rico.2 Applicant also maintains an market’s deposits, and Bank ranks eleventh with 1 All banking and financial data for Applicant and its subsid­ 3 The San Juan banking market consists of the San Juan iaries are as of October 31, 1974. SMSA. 2 Applicant’s deposit data for Puerto Rico are as of December 4 All deposit data for the San Juan banking market are as 31, 1973, unless otherwise indicated. of June 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin □ May 1975 approximately 2.0 per cent of the market’s depos­ tieth calendar day following the effective date of its. Consummation of the proposal would advance this Order or (b) later than three months after the Applicant’s rank to sixth in the market, as it would effective date of this Order, unless such period increase Applicant’s share to 5.1 per cent of the is extended for good cause by the Board, or by market’s deposits. W hile consummation of the the Federal Reserve Bank of New York pursuant proposal would eliminate some existing competi­ to delegated authority. tion between Applicant and Bank and would By order of the Board of Governors, effective slightly increase the concentration of banking re­ April 9, 1975. sources in the market, in the Board’s judgment, Voting for this action: Chairman Burns and Gover­ these anticompetitive effects would be clearly out­ nors Sheehan, Bucher, Holland, Wallich, and Coldwell. weighed in the public interest by the probable Absent and not voting: Governor Mitchell. effect of the transaction in meeting the conven­ ience and needs of the community to be served, (Signed) Theodore E. A llison, [seal] Secretary of the Board. because Bank’s viability as a competitor in the market has been greatly lessened as a result of its financial and managerial problems. Due to Goose River Holding Company, Bank’s condition, it would also appear that no substantial potential competition between Appli­ M ayville, N orth D akota cant and Bank is being foreclosed, and, while it Order Approving Formation of Bank might be more desirable to have Bank serve as Holding Company a foothold entry for another banking organization outside the market, the necessity of finding a Goose River Holding Company, M ayville, timely resolution of its present problems must be North Dakota, has applied for the Board’s ap­ the dominant consideration. proval under § 3(a)(1) of the Bank Holding Com­ The financial and managerial resources and fu­ pany Act (12 U.S.C. 1842(a)(1)) of formation of ture prospects of Applicant are regarded as satis­ a bank holding company through acquisition of factory and consistent with approval. The financial 93.1 per cent or more of the voting shares of The and managerial resources and future prospects of Goose River Bank, M ayville, North Dakota Bank are considered to be poor, and if it is to (“Bank”). continue as a viable banking institution it must Notice of the application, affording opportunity be acquired by a sound and well-managed banking for interested persons to submit comments and institution such as Applicant. Acquisition of Bank views, has been given in accordance with § 3 (b) by Applicant will provide Bank with needed fi­ of the Act. The time for filing comments and views nancial and managerial resources and will greatly has expired, and the Board has considered the improve its future prospects. Particularly impor­ application and all comments received in light of tant from the Board’s viewpoint is the fact that the factors set forth in § 3(c) of the Act (12 U.S.C. upon consummation of the proposal, Applicant 1842(c)). will take full managerial control of Bank. These Applicant is a non-operating corporation orga­ factors lend great weight toward approval. nized for the purpose of becoming a bank holding Convenience and needs factors also lend great company through the acquisition of Bank. Bank weight toward approval, as the continuity of (deposits of $12.3 million), the only bank in banking services by a locally-chartered institution M ayville, is the second largest of five banks in would be maintained in those areas now served the relevant market, approximated by Traill by Bank. Applicant intends to operate Bank as County, and holds 28.8 per cent of the commercial a separate subsidiary, perhaps in combination with bank deposits in the market.1 Traill County (pop­ its other branch offices in Puerto Rico. This should ulation of approximately 10,000) is a predomi­ also improve .the range and quality of banking nantly agricultural area in the east central portion services available to the public at Bank’s offices. of North Dakota directly adjacent to the Minnesota It is the Board’s judgment that consummation of border. Since the proposal is essentially a restruc­ the proposed transaction would be in the public turing of Bank’s ownership whereby the ownership interest and that the application to acquire Bank of Bank will be shifted from individuals to a should be approved. corporation owned by the same individuals, con­ On the basis of the record, the application is summation of the proposal would eliminate neither approved for the reasons summarized above. The transaction shall not be made (a) before the thir­ JA11 banking data are as of June 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 311 existing or potential competition, nor would it M idwest Bancshares, Inc., increase the concentration of banking resources in Poplar Bluffs, Missouri any relevant area. Accordingly, on the basis of the facts of record, the Board regards competitive Order Denying Formation of Bank Holding Company considerations involved in the proposal as being consistent with approval of the application. Midwest Bancshares, Inc., Poplar Bluffs, M is­ The financial and managerial resources and fu­ souri, has applied for the Board’s approval under ture prospects of Applicant are dependent upon § 3(a)(1) of the Bank Holding Company Act (12 those of Bank, which are considered to be gener­ U.S.C. 1842(a)(1)) of formation of a bank holding ally satisfactory. Bank’s projected income appears company through acquisition of 80 per cent of the adequate to service the debt that will be incurred voting shares of Dexter National Bank, Dexter, by Applicant as an incident to the acquisition. Missouri (“Bank”). Therefore, considerations relating to the banking Notice of the application, affording opportunity factors are consistent with approval of the appli­ for interested persons to submit comments and cation. Although consummation of the transaction views, has been given in accordance with § 3(b) is not expected to produce any immediate changes of the Act. The time for filing comments and views in Bank’s operations nor immediate benefits to the has expired, and the Board has considered the public, considerations relating to the convenience application and all comments received, including and needs of the community to be served are those submitted by the Comptroller of the Cur­ consistent with approval of the application. It is rency, in light of the factors set forth in § 3(c) the Board’s judgment that the acquisition would of the Act (12 U.S.C. 1842(c)). be consistent with the public interest and that the Applicant is a nonoperating corporation orga­ application should be approved. nized under the laws of Missouri for the purpose On the basis of the record, the application is of becoming a bank holding company through the approved for the reasons summarized above. The acquisition of Bank. With deposits of $8 million, transaction shall not be made (a) before the thir­ Bank holds approximately 15.1 per cent of the tieth calendar day following the effective date of total deposits held by commercial banks in the this Order or (b) later than three months after the relevant banking market (approximated by Stod­ effective date of this Order, unless such period dard County) and is the third largest of the mar­ is extended for good cause by the Board or by ket’s six banks.1 Inasmuch as this proposal repre­ the Federal Reserve Bank of Minneapolis pursuant sents merely a reorganization of existing owner­ to delegated authority. ship interests, and since Applicant has no present By order of the Board of Governors, effective banking subsidiaries, the acquisition of Bank by April 7, 1975. Applicant would not have any significantly adverse Voting for this action: Governors Sheehan, Holland, effect upon either actual or potential competition and Bucher. Voting against this action: Vice Chairman within the relevant market. Accordingly, the Mitchell and Governor Wallich. Absent and not voting: Board concludes that competitive considerations Chairman Burns and Governor Coldwell. are consistent with approval of the application. (Signed) Theodore E. A llison, The Board has indicated on previous occasions [seal] Secretary of the Board. that it believes that a holding company should provide a source of financial and managerial Dissenting Statement of Vice Chairman strength to its subsidiary bank(s), and that the Mitchell and Governor Wallich Board will closely examine the condition of the The bank holding company form of organization Applicant in each case with this consideration in enhances management powers and opportunities in mind. In connection with this proposal, Applicant banking and bank related activities. The record in will incur acquisition debt which it proposes to this case does not indicate that any direct public service over a twelve-year period primarily benefit is foreseen as a result of the formation of through dividends from Bank. In the Board’s this holding company. Moreover the record, in our view, the projected earnings of Applicant over the opinion, supports the inference that, other than debt-retirement period appear to be somewhat op­ enhancement of the corporate interest, any indirect timistic in view of Bank’s previous earnings and, effects are likely to be negative so far as the public interest is concerned. For that reason we would *A11 banking data are as of June 30, 1974, unless otherwise deny the application. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin □ May 1975 even if actually realized, would not provide Ap­ York State Company, plicant with the financial flexibility necessary to York, N ebraska meet its annual debt service requirements while maintaining adequate capital at Bank.2 Further­ Order Approving Formation of Bank more, the financial requirements imposed upon Holding Company Applicant as a result of the debt could prevent York State Company, York, Nebraska, has ap­ it from resolving any unforeseen problems that plied for the Board’s approval under § 3(a)(1) of may arise and thereby impair Bank’s ability to the Bank Holding Company Act (12 U.S.C. continue to serve the community as a viable bank­ 1842(a)(1)) of formation of a bank holding com­ ing organization. pany through acquisition of 100 per cent of the On the basis of the above and other facts of voting shares (less directors’ qualifying shares) of record, the Board is of the view that it would not York State Bank, York, Nebraska (“Bank”). be in the public interest to approve the formation Notice of the application, affording opportunity of a bank holding company with an initial debt for interested persons to submit comments and structure that could result in impairing Bank’s views, has been given in accordance with § 3(b) overall financial condition. Accordingly, the Board of the Act. The time for filing comments and views concludes that the considerations relating to the has expired, and the Board has considered the banking factors weigh against approval of the application and all comments received in light of application. the factors set forth in § 3(c) of the Act (12 U.S.C. As indicated above, the proposed formation 1842(c)). essentially involves the reorganization of the own­ Applicant, a nonoperating corporation with no ership interest of Bank without any significant subsidiaries, was organized for the purpose of changes in Bank’s operations or the services of­ becoming a bank holding company through the fered to customers of Bank. Consequently, con­ acquisition of Bank. Bank (deposits of $21 mil­ siderations relating to the convenience and needs lion) is the smaller of two banks in York and the of the community to be served lend no weight second largest of seven banks operating in the toward approval of the application. relevant banking market,1 controlling approxi­ On the basis of all of the circumstances con­ mately 29 per cent of the total deposits in com­ cerning this application, the Board concludes that mercial banks in the market.2 Upon acquisition of the banking considerations involved in this pro­ Bank, Applicant would control approximately 0.4 posal present adverse factors bearing upon the per cent of the total commercial bank deposits in financial conditions and prospects of both Appli­ the State. Since the purpose of the proposed trans­ cant and Bank. Such adverse factors are not out­ action is essentially a reorganization to effect a weighed by any procompetitive effects or by transfer of the ownership of the shares of Bank benefits that would result in serving the conven­ from an individual to a corporation owned by the ience and needs of the community. Accordingly, same individual, consummation of the proposal it is the Board’s judgment that approval of the would not eliminate any existing competition, nor application would not be in the public interest and would it appear to have any adverse effects on that the application should be denied. other banks or on the development of potential On the basis of the facts of record, the applica­ competition in the relevant market. Therefore, tion is denied for the reasons summarized above. competitive considerations are consistent with ap­ By order of the Board of Governors, effective proval of the application. April 17, 1975. The financial and managerial resources and fu­ Voting for this action: Chairman Burns and Gover­ ture prospects of Applicant are dependent upon nors Mitchell, Holland, and Coldwell. Absent and not those of Bank. Those of Bank are regarded as voting: Governors Sheehan, Bucher, and Wallich. satisfactory. Although Applicant will assume debt (Signed) Theodore E. A llison, in acquiring the shares of Bank, it appears that [seal] Secretary of the Board. income from Bank will provide sufficient revenue to service the debt adequately without impairing the financial condition of Bank. Considerations relating to the banking factors are consistent with 2In a letter dated March 4, 1975 to the Board, the Comp­ troller of the Currency indicated that he was not recommending approval of the application because Bank’s past earnings his­ tory and capital structure made it seem unlikely that the annual xThe relevant banking market is approximated by York debt service requirements and the anticipated growth in busi­ County. ness volume would be met by Bank’s projected net earnings. 2Banking data are as of June 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 313 approval of the application. Although consumma­ subsidiary bank, and where the only benefits tion of the transaction would have no immediate flowing from the proposal are those that pertain effect on area banking needs, considerations relat­ to an individual. I cannot believe that the public ing to the convenience and needs of the community interest is served by use of the holding company to be served are consistent with approval of the structure in this fashion. application. It is the Board’s judgment that con­ For these reasons, I would deny the application. summation of the proposed transaction would be consistent with the public interest and that the DETROITBANK C orporation, application should be approved. D etroit, M ichigan On the basis of the record, the application is Order Approving Acquisition of Bank approved for the reasons summarized above. The transaction shall not be made (a) before the thir­ DETROITBANK Corporation, Detroit, M ichi­ tieth calendar day following the effective date of gan, a bank holding company within the meaning this Order or (b) later than three months after the of the Bank Holding Company Act, has applied effective date of this Order, unless such period for the Board’s approval under § 3(a)(3) of the is extended for good cause by the Board, or by Act (12 U.S.C. 1842(a)(3)) to acquire all of the the Federal Reserve Bank of Kansas City pursuant voting shares (less directors’ qualifying shares) of to delegated authority. First National Bank of Warren, Warren, Michigan By order of the Board of Governors, effective (“ Bank”). April 24, 1975. Notice of the application, affording opportunity Voting for this action: Governors Sheehan, Bucher, for interested persons to submit comments and Holland, and Wallich. Voting against this action: Gov­ views, has been given in accordance with § 3(b) ernor Coldwell. Absent and not voting: Chairman Burns of the Act. The time for filing comments and views and Governor Mitchell. has expired, and the Board has considered the (Signed) G riffith L. Garwood, application and all comments received in light of [seal] Assistant Secretary of the Board. the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). Dissenting Statement of Governor Coldwell Applicant, the fourth largest bank holding com­ pany in Michigan, controls three subsidiary banks1 I would deny the application of York State with aggregate deposits of about $2.3 billion,2 Company to become a bank holding company representing approximately 8.1 per cent of the total through the acquisition of York State Bank, York, commercial bank deposits in the State. Applicant’s Nebraska. acquisition of Bank would increase Applicant’s A bank holding company form of organization share of commercial bank deposits in the State by enhances management powers and opportunities in 0.2 per cent and would not result in a significant banking, and enables the organization to pursue increase in the concentration of banking resources expansion into permissible nonbanking activities. in Michigan. Thus, it is important that the financial soundness Bank (deposits of $45.2 million) is located in of the bank holding company be assured and that Warren, a suburb of Detroit, and operates in the the holding company be a source of strength to Detroit banking market,3 which is the relevant its subsidiaries. The amount of debt being assumed banking market. Some 41 banking organizations by the holding company in this proposal is high with a total of 638 offices compete in the Detroit and, in my view, is a questionable element. banking market. Applicant’s lead bank operates Moreover, the record in this case does not indicate 85 offices in the Detroit banking market, including that any direct benefits to the public would result offices which serve the Warren area and compete from the formation of the holding company. The directly with Bank. Thus, it appears that consum­ only discernible benefits that will result are those mation of this acquisition would result in the relating to the personal financial interests of the elimination of some existing and future competi­ present owner of Bank, who will also be the tion in the Detroit banking market, although this principal owner of the holding company. In my situation is mitigated to some extent by the large view, the approval of a holding company presup­ poses a real public interest benefit. It should not *Two of Applicant’s subsidiary banks are recently formed be approved by the Board where the debt to be de novo banks. 2Banking data are as of June 30, 1974. incurred by the holding company is high, poten­ 3The Detroit banking market is approximated by Macomb, tially impairing the financial soundness of the Oakland, and Wayne Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin □ May 1975 number of competing banks operating in the mar­ Federal Reserve Bank of Chicago pursuant to ket. While it is the Board’s view that consumma­ delegated authority. tion of the proposed acquisition would result in By order of the Board of Governors, effective some adverse effects on competition in the Detroit April 11, 1975. banking market, this situation must be examined Voting for this action: Chairman Burns and Gover­ in light of the financial, managerial, and convience nors Mitchell, Sheehan, Holland, and Coldwell. Absent and needs considerations discussed below. and not voting: Governors Bucher and Wallich. The financial and managerial resources and fu­ (Signed) Theodore E. A llison, ture prospects of Applicant and its subsidiary [seal] Secretary of the Board. banks are regarded as favorable. The financial and managerial resources and future prospects of Bank are not entirely satisfactory at the present time but General Bancshares Corporation, are expected to show marked improvement as a St. Louis, M issouri result of Bank’s affilation with Applicant. Appli­ cant has committed that, upon consummation of Order Approving Acquisition of Bank the acquisition, it would make a substantial con­ General Bancshares Corporation, St. Louis, tribution of funds to increase Bank’s capital posi­ Missouri, a bank holding company within the tion and would provide additional experienced meaning of the Bank Holding Company Act personnel to augment Bank’s management. The (“Act”), has applied for the Board’s approval Board regards these commitments as significant under § 3(a)(3) of the Act (12 U.S.C. § and believes that financial and managerial factors 1842(a)(3)) to acquire 100 per cent (less directors’ lend substantial weight toward approval of the qualifying shares) of the voting shares of Traders application. National Bank of Kansas City,,Kansas City, M is­ Affiliation with Applicant would enable Bank souri (“Bank”). to draw upon Applicant’s resources and expertise Notice of application, affording opportunity for and thereby offer expanded services to its custom­ ers. Applicant states that, following consummation interested persons to submit comments and views, has been given in accordance with § 3(b) of the of the acquisition, Bank would make available to Act (12 U.S.C. § 1842(b)). The time for filing its customers numerous new and improved serv­ comments and views has expired, and the Board ices, including: personal and corporate trust serv­ has considered the application and all comments ices, international banking services, accounts re­ received in light of the factors set forth in § 3(c) ceivable financing, computerized services, lock of the Act (12 U.S.C. § 1842(c)). boxes, and personal property leasing. It is ex­ Applicant is the seventh largest banking organi­ pected that enabling Bank’s customers to obtain zation in Missouri and controls seven Missouri these services through Bank would result in Bank’s banks with total deposits of $362.8 million, repre­ becoming a more attractive banking alternative and senting approximately 2.4 per cent of the total a strong competitor in the Warren area. Conven­ deposits held by commercial banks in the State.1 ience and needs considerations also lend weight In addition, Applicant controls three banks in toward approval of the application. The Board is Illinois and one in Tennessee, all of which were of the view that, under the circumstances of this acquired by Applicant prior to the enactment of case, the convenience and needs factors, consid­ the Bank Holding Company Act of 1956. Acqui­ ered together with the financial and managerial sition of Bank would increase Applicant’s share factors discussed above, outweigh in the public of State deposits by approximately one-half of one interest the adverse competitive effects of this per cent, while Applicant’s rank among the State’s proposal. It is the Board’s judgment that consum­ banking organizations would remain unchanged. mation of the proposed transaction would be in Bank (deposits of $81.5 million) is the eighth the public interest and that the application should largest commercial bank in the Kansas City bank­ be approved. ing market and controls approximately 1.9 per cent On the basis of the record, the application is of the total deposits held by commercial banks in approved for the reasons summarized above. The this market.2 Applicant’s closest Missouri banking transaction shall not be made (a) before the thir­ tieth calendar day following the effective date of this Order or (b) later than three months after the *A11 banking data are as of June 30, 1974. 2The Kansas City banking market is approximated by the effective date of this Order unless such period is Kansas City SMSA less Ray County, and the southern half extended for good cause by the Board or by the of Cass County, Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 315 subsidiary to Bank is located approximately 240 United Banks of Colorado, Inc., miles east of Bank in St. Louis County, Missouri. Denver, Colorado There is no significant existing competition be­ tween any of Applicant’s banking or nonbanking Order Denying Acquisition of Bank subsidiaries and Bank, and it appears unlikely that United Banks of Colorado, Inc., Denver, Colo­ any such competition would develop in the future rado, a bank holding company within the meaning due in part to Missouri’s branching law. Inasmuch of the Bank Holding Company Act, has applied as the six largest Missouri bank holding companies for the Board’s approval under § 3(a)(3) of the each own two or more banks in the market, acqui­ Act (12 U.S.C. 1842(a)(3)) to acquire 90 per cent sition of Bank by Applicant may promote compe­ or more of the voting shares of Republic National tition by introducing a new banking alternative into Bank of Englewood, Englewood, Colorado the market and by strengthening Bank’s competi­ (“Bank”). tive position therein. Accordingly, on the basis of Notice of the application, affording opportunity the facts of record, the Board concludes that com­ for interested persons to submit comments and petitive considerations are consistent with approval views, has been given in accordance with § 3(b) of the application. of the Act (39 Federal Register 36394, October The financial and managerial resources and fu­ 9, 1974). The time for filing comments and views ture prospects of Applicant and its subsidiary has expired, and the Board has considered the banks are regarded as generally satisfactory and application and all comments received in light of consistent with approval of the application. Bank’s the factors set forth in § 3(c) of the Act (12 U.S.C. affiliation with Applicant should result in a 1842(c)). strengthening of Bank’s overall financial condi­ Applicant controls 16 banks with aggregate de­ tion, as well as providing Bank with additional posits of about $918.6 million, representing ap­ managerial expertise. Thus, the banking factors proximately 13.7 per cent of the total commercial lend weight toward approval of the application. bank deposits in Colorado and is the second largest In regard to considerations relating to conven­ banking organization in the State.1 The acquisition ience and needs, Applicant intends to supply Bank of Bank (deposits of $13.1 million) would increase with access to Applicant’s wide range of banking Applicant’s control of commercial bank deposits expertise, particularly in the area of data process­ in Colorado by 0.2 of one per cent and would ing services. In addition, Bank’s construction and not alter Applicant’s rank among Colorado bank­ cattle lending activities would be expanded. These ing organizations. considerations relating to the convenience and Bank, which is located in a suburban area about needs of the community to be served lend addi­ 7 miles from downtown Denver, competes in the tional weight toward approval of the application. Denver banking market (approximated by Denver, It is the Board’s judgment that the proposed ac­ Adams, Arapahoe and Jefferson Counties and the quisition would be in the public interest and that Broomfield area of Boulder County) and controls the application should be approved. approximately .3 of. one per cent of total market On the basis of the record, the application is deposits. Applicant is also represented in the approved for the reasons summarized above. The Denver market and ranks therein as the second transaction shall not be made (a) before the thir­ largest banking organization with six subsidiaries tieth calendar day following the effective date of in the market controlling approximately 17 per this Order or (b) later than three months after the cent of the total market deposits. Consummation effective date of this Order, unless such period of the proposed transaction would have some ad­ is extended for good cause by the Board, or by verse effects on the concentration of banking re­ the Federal Reserve Bank of St. Louis pursuant sources by increasing Applicant’s position in the to delegated authority. market and by increasing the percentage of depos­ By order of the Board of Governors, effective its held by the five largest organizations in the April 1, 1975. market to about 69.3 per cent of the total. Voting for this action: Chairman Burns and Gover­ In addition to the effects of the proposal on the nors Mitchell, Bucher, Holland, and Wallich. Absent concentration of banking resources, the proposal and not voting: Governors Sheehan and Coldwell. *A11 banking data are as of Tune 30, 1974, and reflect bank (Signed) Theodore E. A llison, holding company formations and acquisitions approved by the [seal] Secretary of the Board. Board through January 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin □ May 1975 would have adverse effects on existing and future United Banks of Colorado, Inc., competition within the Denver market. As noted Denver, Colorado above, Applicant is already represented in the Order Approving Acquisition of Bank relevant market, and the record indicates that there is meaningful competition between Applicant and United Banks of Colorado, Inc., Denver, Colo­ Bank which would be eliminated by this proposal, rado, a bank holding company within the meaning as evidenced by the fact that two of Applicant’s of the Bank Holding Company Act, has applied subsidiaries derive significant amounts of loans for the Board’s approval under § 3(a)(3) of the and deposits from the area served by Bank. Fur­ Act (12 U.S.C. 1842(a)(3)) to acquire 100 per cent thermore, the proposal would foreclose the devel­ of the voting shares (less directors’ qualifying opment of future competition by removing Bank shares) of United Bank of Monaco, N. A ., Denver, as an independent competitor. Accordingly, the Colorado (“Bank”), a proposed new bank. Board is of the view that consummation of the Notice of the application, affording opportunity proposal would have adverse effects on both ex­ for interested persons to submit comments and isting and future competition. views, has been given in accordance with § 3(b) On the basis of the foregoing and other facts of the Act (39 Federal Register 41312, November of record, the Board concludes that competitive 26, 1974). The time for filing comments and views considerations relating to this application weigh has expired, and the Board has considered the sufficiently against approval so that it should not application and all comments received, including be approved unless the anticompetitive effects are those of Frontier Bank of Denver, Denver, Colo­ outweighed by other positive considerations re­ rado (“Protestant”), in light of the factors set forth flected in the record such as the financial and in § 3(c) of the Act (12 U.S.C. 1842(c)). managerial resources and future prospects of Ap­ Applicant controls 16 banks’ with aggregate de­ plicant and Bank or the convenience and needs posits of about $918.6 million, representing ap­ of the communities to be served. proximately 13.7 per cent of the total commercial The financial and managerial resources and bank deposits in Colorado, and is the second prospects of Applicant, its subsidiaries, and Bank largest banking organization in the State.1 Since are regarded as generally satisfactory and consist­ Bank is a proposed new bank, its acquisition by ent with approval of the application, although such Applicant would not immediately increase Appli­ considerations do not provide weight for approval cant’s share of commercial bank deposits in the of the application. The same conclusion pertains State. to considerations relating to the convenience and Bank is a new bank which has received prelim­ needs of the communities to be served. Accord­ inary charter approval from the Comptroller of the ingly, the Board finds that neither the consid­ Currency and is to be located in southeast Denver erations relating to the banking factors nor those within the Denver market, which is approximated relating to convenience and needs outweigh the by Denver, Adams, Arapahoe, and Jefferson adverse competitive effects the Board finds present Counties and the Broomfield area of Boulder in Applicant’s proposal. County. With six subsidiaries in the Denver mar­ On the basis of all the facts in the record, and ket (the relevant market), Applicant controls de­ in light of the factors set forth in § 3(c) of the posits of $659.8 million, representing about 17 per Act, it is the Board’s judgment that approval of cent of the market deposits, and ranks thereby as the proposal would not be in the public interest. the second largest banking organization in the Accordingly, the application is denied for the market. The first and third largest banking organi­ reasons summarized above. zations in the market control, respectively, about By order of the Board of Governors, effective 22 and 14 per cent of the market deposits. Since April 11, 1975. Bank is a proposed new bank, consummation of Voting for this action: Chairman Burns and Gover­ Applicant’s proposal would not eliminate any exnors Mitchell, Sheehan, Holland, and Coldwell. Absent and not voting: Governors Bucher and Wallich. *A11 banking data are as of June 30, 1974, and reflect bank (Signed) Theodore E. A llison, holding company formations and acquisitions approved through [seal] Secretary of the Board. January 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 317 isting competition, nor would it have any immedi­ Protestant, indicate the area would support another ate effect on Applicant’s share of commercial bank bank. With respect to the final contention that the deposits in the market. While Applicant is the proposal would adversely affect Protestant, the second largest banking organization in the market, Board recognizes that the introduction of a new it is noted that its market share has been declining banking alternative may slow the rate of Protes­ recently, and it does not appear that Applicant tant’s growth; however, the evidence in the record occupies a dominant position within the market. is not sufficient, in the Board’s judgment, to con­ In its analysis of the subject application, the clude that the proposal would adversely affect Board has also considered the comments submitted Protestant as a viable banking organization. on behalf of Protestant, a bank located less than Accordingly, on the basis of the facts of record two miles from the proposed site of Bank. Gener­ and having considered the comments of Protestant, ally speaking, Protestant contends that the pro­ the Board concludes that consummation of the posal would have anticompetitive effects. In sup­ proposed acquisition would not have significant port of this contention, Protestant argues that the adverse effects on existing or potential competition area that will be served by Bank is “in the state and that competitive considerations are consistent of economic lethargy” and is not in need of a with approval of the application. new bank; Applicant is already dominant in this The financial and managerial resources of Ap­ area, and the establishment of a new bank by plicant and its subsidiaries are regarded as gener­ Applicant at this time would adversely affect Pro­ ally satisfactory. Bank, a proposed new bank, has testant, a recently opened bank.2 In the Board’s no financial or operating history; however, its judgment, the issues raised by Protestant are not prospects as a subsidiary of Applicant appear fa­ sufficient to warrant denial of the subject applica­ vorable. Considerations relating to banking fac­ tion. tors, therefore, are consistent with approval of the On the basis of the facts of record, the Board application. In regard to convenience and needs disagrees with Protestant’s assessment of the ad­ considerations, Bank would serve as an additional verse effects of the proposal. As noted above, the source of full banking services to the residents of relevant banking market for assessing the compet­ the area, including the businesses and customers itive effects of the proposal is the Denver market. of the nearby shopping center who now must travel Applicant’s position within this market has been approximately two miles to the nearest bank. Ac­ declining in recent years and the instant proposal cordingly, these considerations relating to con­ represents, in the Board’s view, an effort to serve venience and needs lend some weight toward ap­ the growing banking needs of the Denver area. proval of the application. It is the Board’s judg­ Even though there are over 70 banks in the market, ment that the proposed acquisition would be in it appears that there is a need for additional banks the public interest and that the application should to serve the Denver market, as indicated by a be approved. population per banking office ratio of approxi­ On the basis of the record, the application is mately 18,000 as compared to about 9,000 for the approved for the reasons summarized above. The State. Even using the service area delineated by transaction shall not be made (a) before the thir­ Protestant (which is only a guesstimate that may tieth calendar day following the effective date of prove inaccurate in actual practice), the Board is this Order or (b) later than three months after that unable to conclude that Applicant is dominant in date, and (c) United Bank of Monaco, N .A ., the area or that the area would not support an Denver, Colorado, shall be opened for business additional bank. In this latter connection, it is not later than six months after the effective date noted that the Denver area, including southeast of this Order. Each of the periods described in Denver, has experienced significant growth in the (b) and (c) may be extended for good cause by past and, while the overall growth of the area has the Board, or by the Federal Reserve Bank of slowed recently, the prospects for future growth Kansas City pursuant to delegated authority. in the market, as well as the area in the vicinity By order of the Board of Governors, effective of Bank, are favorable. Furthermore, the growth April 11, 1975. experienced by the banks in the vicinity of Bank’s proposed site, including the significant growth of Voting for this action: Chairman Bums and Gover­ nors Mitchell, Sheehan, Holland, and Coldwell. Absent and not voting: Governors Bucher and Wallich. 2On March 26, 1975, the Board approved the application of Frontier Bancorporation of Denver, Inc., Denver, Colorado, (Signed) Theodore E. A llison, to become a bank holding company. Protestant is a subsidiary of that bank holding company. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin □ May 1975 United M issouri Bancshares, Inc., controversy exists as to many of the relevant facts Kansas City, M issouri cited by the Administrative Law Judge, the Board does disagree with the conclusions, inferences, Order Denying Acquisition of Bank and legal conclusions to be drawn from these facts. Accordingly, the Board having considered the United Missouri Bancshares, Inc., Kansas City, entire record of the hearing, including the tran­ Missouri, a bank holding company within the script, exhibits, rulings, all briefs, and memoranda meaning of the Bank Holding Company Act, has filed in connection with the hearing and the Rec­ applied for the Board’s approval under § 3(a)(3) ommended Decision, findings of fact, and conclu­ of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 sions of law filed by the Administrative Law per cent or more of the voting shares of Westport Judge, together with the exceptions taken thereto, Bank, Kansas City, Missouri (“Bank”). and having determined that the subject application Notice of receipt of the application, affording should be denied, all findings of the Administrative opportunity for interested persons to submit com­ Law Judge inconsistent with the Board’s findings ments and views with respect to the proposed and determination herein are hereby vacated. The transaction, was published in the Federal Register Board now makes the following findings of fact (39 F.R. 7998). As required by § 3(b) of the Act, and conclusions of law. the Board gave written notice of receipt of the Applicant is the fifth largest banking organi­ application to the Commissioner of Finance of the zation in Missouri where it controls 17 banks State of Missouri and requested his views and holding aggregate deposits of $720.9 million, rep­ recommendations thereon. Within 30 days of the resenting 4.8 per cent of the total commercial bank receipt of that notice, the Commissioner submitted deposits in the State.2 Acquisition of Bank, with in writing a statement expressing disapproval of deposits of $36.1 million, would increase Appli­ the application. Accordingly, as required by § 3(b) cant’s share of the State’s total commercial bank of the Act, the Board directed that a public hearing deposits to approximately 5 per cent and would be held commencing on April 3, 1974, at the not alter Applicant’s rank among Missouri banking Federal Reserve Bank of Kansas City before the organizations. Honorable John G. Liebert, Administrative Law Bank, which is located in a suburban area about Judge. Notice of the hearing was published in the four miles from downtown Kansas City, competes Federal Register (39 F.R. 10190), and all persons in the Kansas City banking market (approximated desiring to give testimony, present evidence, or by the Kansas City Standard Metropolitan Statisti­ otherwise participate in the hearing held in Kansas cal Area less Ray County and the southern portion City, Missouri, on April 3, 1974, and July 23 of Cass County) and controls approximately .8 of through July 25, 1974, were afforded an opportu­ 1 per cent of total market deposits. Applicant is nity to do so. The hearing and related proceedings also represented in the Kansas City banking market have been conducted in accordance with the and ranks therein as the third largest banking Board’s Rules of Practice for Formal Hearings (12 organization with five subsidiaries in the market CFR 263).1 controlling approximately 11.9 per cent of the total In a Recommended Decision of December 30, market deposits. Upon consummation of the 1974, the Administrative Law Judge concluded proposed transaction, Applicant’s share of the that the evidence supported approval of the appli­ market’s total deposits would increase to 12.7 per cation and found that the financial and managerial cent. The resulting organization’s share of IPC resources and future prospects of Applicant, Ap­ demand deposits in accounts under $20,000 would plicant’s present affiliates, and Bank are satis­ increase from 7.8 per cent to 9.3 per cent of the factory and consistent with approval of the appli­ market total (as of June 30, 1972). cation. Accordingly, he recommended that the As noted above, Applicant is already repre­ Board of Governors determine that the proposed sented in the relevant market, and the record acquisition satisfies the requirements of § 1842(c) indicates that its lead bank is located approxi­ of the Act and that the application be approved. mately four miles north of Bank. Four other sub­ W hile the Board recognizes that little or no sidiary banks of Applicant, all located in the 1 Board counsel’s participation in the hearing was confined 2All banking data, unless otherwise indicated, are as of to “represent[ing] the Board in a nonadversary capacity for December 31, 1973, and reflect acquisitions of existing banks the purpose of developing for the record information relevant approved by the Board through July 15, 1974. All such data to the issues to be determined by the presiding officer and is taken from the record certified by the Administrative Law the Board” (12 CFR 263.6(d)). Judge. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 319 Kansas City banking market, have their main the areas of accounts receivable financing, freight offices located five, nine, twelve, and sixteen payment arrangements, equipment leasing, com­ miles, respectively, from Bank. Moreover, the puter services, and international financing. Appli­ record discloses that the service area overlap of cant also proposes to offer a “Blue Banner Ac­ deposits and loans by the Applicant’s five banking count” program, which includes a package of subsidiaries and Bank is substantial. Applicant’s retail banking services for a monthly fee. While subsidiaries derive approximately $118.3 million convenience and needs considerations lend some of total IPC deposits from the service area of Bank. weight for approval of the application, they do The majority of this total, however, or $97.5 not, in the Board’s judgment, outweigh the anti­ million, is accounted for by Applicant’s lead bank; competitive effects of the proposal. Accordingly, 12.3 per cent of this total ($12 million) is in the Board finds that neither the considerations accounts less than $10,000. Applicant’s subsidi­ relating to the banking factors nor those relating aries derive total loans of approximately $96.8 to convenience and needs outweigh the adverse million from the service area of Bank of which competitive effects the Board finds present in Ap­ $86.5 million are accounted for by Applicant’s plicant’s proposal. lead bank.3 In the Board’s view, the proposed On the basis of all the facts in the record and acquisition would eliminate substantial existing in light of the factors set forth in § 3(c) of the competition between Applicant’s subsidiary banks Act, it is the Board’s judgment that approval of and Bank in the Kansas City banking market. the proposal would not be in the public interest. Furthermore, the proposal would foreclose the Accordingly, the application is denied for the development of future competition by removing reasons summarized above. Bank as an independent competitor. Accordingly, By order of the Board of Governors, effective the Board is of the view that consummation of April 28, 1975. the proposal would have adverse effects on both Voting for this action: Chairman Burns and Gover­ present and future competition. nors Mitchell, Holland, and Coldwell. Absent and not On the basis of the foregoing and other facts voting: Governors Sheehan, Bucher, and Wallich. of record, the Board concludes that competitive (Signed) G riffith L. G arwood, considerations relating to this application weigh [seal] Assistant Secretary of the Board. sufficiently against approval so that it should not be approved unless the anticompetitive effects are outweighed by other positive considerations re­ First B ancgroup-Alabama, Inc., flected in the record, such as the financial and Mobile, A labama managerial resources and future prospects of Ap­ Order Approving M erger of Bank Holding plicant and Bank or the convenience and needs Companies of the communities to be served. The financial and managerial resources and First Bancgroup-Alabama, Inc., Mobile, Ala­ prospects of Applicant, its subsidiaries, and Bank bama (“FBA”), a bank holding company within are regarded as generally satisfactory. Although the meaning of the Bank Holding Company Act, Bank suffered a decline of $1.5 million in total has applied for the Board’s approval under § deposits during 1973, its deposit growth appears 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) to to have been satisfactory in the period 1968 to merge with United Alabama Bancshares, Inc., 1972. In the Board’s judgment, Bank’s future Birmingham, Alabama (“United”), under the prospects appear favorable. It does not appear that charter of Applicant and the name of First-United a possible management succession problem at Bancgroup-Alabama, Inc. Bank is critical; nor does the record contain any Notice of receipt of the application, affording evidence to show that Bank has explored any an opportunity for interested persons to submit alternatives to this acquisition for providing suc­ comments and views, has been given in accor­ cessor management. Accordingly, managerial and dance with § 3(b) of the Act. The time for filing financial considerations lend only slight weight comments and views has expired, and the Board toward approval of the application. Applicant has considered the application and all comments proposes to assist Bank by upgrading its trust received in light of the factors set forth in § 3(c) department and by offering additional expertise in of the Act (12 U.S.C. 1842(c)). FBA controls three banks with aggregate de­ posits of $351 million, representing approximately 3 Approximately one-half of the loans are greater than $1 million. 4.4 per cent of the total deposits in commercial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin □ May 1975 banks in Alabama, and is the sixth largest multi­ subsidiary bank nearest to a subsidiary bank of bank holding company in the State.1 United con­ United is approximately 97 miles, the distance trols three banks2 with total deposits of $58 mil­ between Huntsville and Bessemer and no subsidi­ lion, representing less than 1 per cent of total ary of FBA competes in any geographic market deposits in the State, and is Alabama’s seventh in which a subsidiary of United competes (other multi-bank holding company. Consummation of than in the Huntsville area). In addition, the rela­ the proposed merger would result in FBA’s control tively small sizes of FBA and United and the fact of approximately 5 per cent of total deposits in that United does not have a lead bank, suggest the State’s commercial banks, and the resulting the absence of any development of competition organization would become the State’s fifth largest between those organizations, absent consumma­ multi-bank holding company, approximately one- tion of the proposed merger. While FBA is capable half the size of the State’s fourth largest banking of entering each of the relevant markets de novo, organization. the low population per bank and personal income FBA’s present subsidiary banks are located in per bank office ratios in Barbour and Houston Mobile, Huntsville, and Foley, Alabama. United’s Counties4 and the number of larger holding com­ present subsidiary banks are located in Huntsville, panies presently represented in Jefferson County Eufaula, Dothan, and Bessemer, Alabama. While makes each of these markets unattractive for such FBA and United each owns and controls a bank entry in the near future. The proposed merger in Huntsville, United has committed to divest its should result, however, in the development of a Huntsville bank, thereby removing any adverse new State-wide holding company with the finan­ competitive effects that would result from the cial resources to compete effectively with the elimination of competition in the Huntsville area.3 State’s largest bank holding companies. United’s subsidiary bank in Eufaula (First National The Board recognizes that consummation of the Bank of Eufaula with deposits of $14 million) is proposal would foreclose the possibility that the second largest of seven banks competing in United would expand to become a State-wide com­ the Barbour County banking market and holds petitor of FBA. However, taking into account the about 21 per cent of the total deposits in that time lag and financial resources necessary to es­ market. United’s subsidiary bank in Dothan (City tablish competitive effectiveness through “foot­ National Bank of Dothan with deposits of $22 hold” or de novo entry, the Board does not view million) is the third largest of seven banking orga­ the record in this case as reflecting a probability nizations competing in the Houston County bank­ that, absent this proposal, United would or could ing market and holds approximately 13 per cent expand to become an effective State-wide compet­ of the total deposits in that market. United’s sub­ itor of FBA and the State’s other bank holding sidiary bank in Bessemer (First Western Bank with companies in the reasonably foreseeable future. In deposits of $22 million) is the sixth largest of 12 prior Orders involving mergers of bank holding banking organizations competing in the Jefferson companies, the Board has noted that a substantial County banking market and holds approximately adverse effect on potential competition occurs only 1 per cent of the total deposits in that market. where there is a probability rather than just a Consummation of the proposed merger would possibility that substantial competition would de­ not appear to have an adverse effect on existing velop between the banking organizations involved competition since the distance separating FBA’s absent the proposed affiliation.5 Therefore, on the basis of the record, the Board concludes that banking data are as of June 30, 1974, and reflect holding consummation of the proposed transaction would company formations and acquisitions approved through No­ vember 30, 1974. not have significant adverse effects on existing or 2United also controls The Bank of Huntsville, Huntsville, potential banking competition in any relevant area. Alabama, which it has committed to divest by offering all the The financial condition and managerial re­ stock of the bank to United’s shareholders in exchange for their shares of United or by a distribution of shares of the sources and future prospects of FBA, its subsidiary bank to United’s shareholders as a dividend, or by both means. United shall take other measures necessary to ensure effective termination of its control of The Bank of Huntsville. 4 The number of banks located in these counties has not 3It does not appear that severance of the relationship between increased in the last five years. United and The Bank of Huntsville (deposits of $40 million 5See Board’s Order of February 16, 1973 approving merger as of December 31, 1974) which has exhibited continuous and of First Florida Bancorporation and United Bancshares of substantial growth since 1969 will weaken the competitive Florida, Inc., 59 Fed. Res. Bulletin, 183, at 184 (1973); vitality of that bank; nor does it appear that The Bank of and Board’s Order of August 1, 1973, approving the merger Huntsville would encounter serious problems in raising equity of Atlantic Bancorporation and Citizens Bancshares of Florida, capital as an independent bank. Inc., 59 Fed. Res. Bulletin 685, at 686 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 321 banks and United appear satisfactory. The finan­ voting shares of Carolina National Mortgage In­ cial condition and managerial resources and future vestment Company, Inc. (“Carolina Mortgage”), prospects of United’s subsidiary banks appear and its indirect subsidiary, CN Mortgages, Inc., generally satisfactory in light of the fact that FBA both located in Charleston, South Carolina.1 will be able to provide financial and managerial Carolina Mortgage would, upon approval, con­ strength to those banks. These considerations are tinue to engage directly in the activities of a consistent with approval of the application. The mortgage banking company and, through its own­ primary banking needs of the areas served by both ership of CN Mortgages, Inc., to engage indirectly holding companies appear to be adequately met in the activities of a second mortgage lender. at the present time. However, consummation of Carolina Mortgage would also continue to act as the proposal would provide customers of United’s agent in the sale of credit life, accident and health banks immediate access to trust department serv­ insurance to its borrowing customers. Such activi­ ices and investment advice. In addition, FBA ties have been determined by the Board to be intends to provide its new subsidiaries with a ready closely related to banking (12 CFR § 225.4(a)(1), source for loan participations, as well as marketing (3) and (9)). services and computer facilities. Considerations Notice of the application, affording opportunity relating to the convenience and needs of the com­ for interested persons to submit comments and munities to be served lend some weight toward views on the public interest factors has been duly approval. It is the Board’s judgment that the published (40 Federal Register 7007). The time proposed transaction is in the public interest and for filing comments and views has expired, and should be approved. the Board has considered all comments received On the basis of the record, the application is in the light of the public interest factors set forth approved for the reasons summarized above. The in § 4(c)(8) of the Act. (12 U.S.C. § 1843(c)(8)). transaction shall not be made (a) before the thir­ Applicant controls one banking subsidiary, Cit­ tieth calendar day following the effective date of izens and Southern National Bank of South Caro­ this Order or (b) later than three months after the lina (“C&S Bank”), with deposits of approxi­ effective date of this Order, unless such period mately $461 million, representing 12.3 per cent is extended for good cause by the Board, or by of the deposits in commercial banks in South the Federal Reserve Bank of Atlanta pursuant to Carolina, and is the second largest banking orga­ delegated authority. nization and bank holding company in the State.2 By order of the Board of Governors, effective In addition to Carolina Mortgage, Applicant has April 16, 1975. five nonbanking subsidiaries respectively engaged in data processing, holding bank premises, com­ Voting for this action: Chairman Burns and Gover­ munity rehabilitation, mobile home financing, and nors Mitchell, Holland, and Coldwell. Absent and not voting: Governors Sheehan, Bucher, and Wallich. providing bank management advisory services. C&S Bank is engaged in making mortgage loans (Signed) Theodore E. A llison, for its own account. It appears, however, that most [seal] Secretary of the Board. of its loans at the tiftie it acquired Carolina Mort­ gage were construction loans and loans on non­ ORDERS UNDER SECTION 4(c)(8) residential property. At the time of acquisition, OF BANK HOLDING COMPANY ACT though, C&S was engaged in making some 1-4 family residential mortgage loans. The Citizens and Southern Corporation, Although it also originated construction loans Charleston, South Carolina and mortgages on nonresidential property, Caro- Order Approving Retention of Carolina *On December 15, 1970, Applicant acquired Carolina National Mortgage Investment Company Mortgage and merged it into Citizens Mortgage Corporation, a wholly-owned subsidiary of Applicant. At the same time, and CN Mortgages, Inc. Applicant indirectly acquired shares of CN Enterprises, Inc., Charleston, South Carolina, a 49 per cent owned subsidiary The Citizens and Southern Corporation, of CN Mortgages, Inc. CN Enterprises, Inc. engages in real estate development. Applicant is not seeking approval to retain Charleston, South Carolina, a bank holding com­ CN Enterprises, Inc. which is subject to the prohibitions in pany within the meaning of the Bank Holding § 4(a)(2) of the Act. It is the intention of Applicant to divest Company Act, has applied for the Board’s ap­ the assets of CN Enterprises, Inc. by December 31, 1980. 2 Unless otherwise indicated, all banking data are as of June proval under § 4(c)(8) of the Act and § 225.4(b)(2) 30, 1974, and reflect bank holding company formations and of the Board’s Regulation Y, to retain all of the acquisitions approved through February 28, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin □ May 1975 lina Mortgage’s loan originations during 1970 indicates that public benefits have continued to were to a great degree comprised of mortgages outweigh the slight adverse effect on competition. on 1-4 family residences. The major geographic Through Applicant’s support, Carolina Mortgage markets affected by the acquisition are approxi­ has increased its servicing volume to nearly $197 mated by the Charleston, Columbia, and Green­ million, and it is now the 151st largest mortgage ville Standard Metropolitan Statistical Areas and company in the country. During the post-acquisi­ Spartanburg County, all in South Carolina. At the tion period (1970 to 1973), Carolina Mortgage time of the acquisition and thereafter, the economy increased its originations by nearly 247 per cent. of these areas was expanding with an attendant In addition, Carolina Mortgage has entered de rise in housing demand and growth. During the novo, thereby stimulating competition, two new period 1970 to 1973, these areas were among the geographic markets: Atlanta, Georgia, and Knox­ fastest growing in the country. Carolina Mortgage ville, Tennessee. The Board believes that the af­ accounted for approximately 5.7, 2.3, and 3.6 per filiation is sufficiently likely to continue to produce cent of 1-4 family residential mortgage loan origi­ public benefits in the foreseeable future so that, nations during 1970 in the first three markets on balance, divestiture would be contrary to the respectively.3 C&S Bank’s market shares in those public interest. markets were approximately 2.5, 0.5, and 0.3 per Carolina Mortgage also sells credit-related in­ cent, respectively, at the time. As of June 30, surance on the loans it originates. Due to the 1971, Carolina Mortgage was the 174th largest limited nature and scope of its insurance activities, mortgage company in the country, based on a it does not appear that the acquisition of Carolina servicing volume of $119 million. Its mortgage Mortgage’s insurance activities had any significant servicing portfolio has increased by $76 million effect on either existing or potential competition. since it ceased operating as an independent mort­ The activities of CN Mortgages, Inc. (total assets gage company. of $4.8 million) are likewise ,so limited in scope It is estimated that there were 18, 23, and 26 that its acquisition did not have any significant residential mortgage competitors respectively in competitive effects. the Charleston, Columbia, and Greenville markets There is no evidence in the record to indicate in 1970. Considering the number of residential that the proposed retentions would lead to an mortgage banking competitors already in those undue concentration of resources, conflicts of in­ markets and the respective market shares of C&S terests, unsound banking practices, or other ad­ Bank and Carolina Mortgage, Applicant’s acqui­ verse effects upon the public interest. sition of Carolina Mortgage had only slightly ad­ Based upon the foregoing and other consid­ verse effects on competition in the origination of erations reflected in the record, the Board has 1-4 family residential mortgage loans.4 The slight determined, in accordance with the provisions of adverse competitive effect of the acquisition is § 4(c)(8), that consummation of this proposal can outweighed by the public benefits which appear reasonably be expected to result in benefits to the to have resulted from Applicant’s acquisition of public that outweigh possible adverse effects. Ac­ Carolina Mortgage. Affiliation has provided cordingly, the application is hereby approved. This greater access to capital markets for Carolina determination is subject to the conditions set forth Mortgage and thereby increased the amount of its in § 225.4(c) of Regulation Y and to the Board’s available funds to meet the growing credit de­ authority to require such modification or termina­ mands for housing and other construction in its tion of the activities of a holding company or any respective mortgage markets. The Board con­ of its subsidiaries as the Board finds necessary to cludes that the potential public benefits outweigh assure compliance with the provisions and pur­ the adverse effect resulting from the affiliation at poses of the Act and the Board’s regulations and the time of the acquisition. orders issued thereunder, and to prevent evasion The Board’s review of the record of affiliation thereof. By order of the Board of Governors, effective April 2, 1975. 3Market shares are based upon Applicant’s estimates of total 1-4 family mortgage originations. No such estimate is available Voting for this action: Vice Chairman Mitchell and for Spartanburg County. Governors Bucher, Holland, and Wallich. Absent and 4 It appears that the acquisition also eliminated competition not voting: Chairman Burns and Governors Sheehan and between C&S Bank and Carolina Mortgage in the origination Coldwell. of construction loans and the origination of mortgages upon nonresidential property. Geographic markets for these services (Signed) Theodore E. A llison, are regional in scope and the amount of competition eliminated is not deemed significant. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 323 Fidelcor, Inc., amount of accounts receivable from its clients Rosemont, Pennsylvania prior to the dates that payments are due from its clients’ customers. This advance factoring is done Order Approving Acquisition of on a notification basis, whereby debtors are in­ Keen Factors, Inc. formed by Keen that it has purchased the accounts receivable and that they are to make their payments Fidelcor, Inc., Rosemont, Pennsylvania, a bank directly to Keen. Keen operates its sole office in holding company within the meaning of the Bank Beverly Hills, California, and, as of February 28, Holding Company Act (“ Act”), has applied for 1974, held total gross receivables of approximately the Board’s approval, under section 4(c)(8) of the $1.3 million, including factored accounts. Appli­ Act and section 225.4(b)(2) of the Board’s Regu­ cant’s subsidiary, Trefoil Capital Corporation lation Y, to establish a de novo indirect1 subsidiary (“Trefoil”), with offices located in both New named Trefoil Capital Corporation of California, York, New York and Philadelphia, Pennsylvania, Inc., and through said subsidiary to acquire sub­ engages only in commercial finance lending. Sub­ stantially all of the assets of Keen Factors, Inc., sequent to its acquisition of Trefoil in 1973, Ap­ Beverly Hills, California (“Keen”), a company plicant transferred the commercial finance lending that engages in the making and acquiring, for its activities of its subsidiary bank to Trefoil. Trefoil’s own account or for the account of others, loans gross receivables, as of June 30, 1974, amounted and other extensions of credit such as would be to approximately $22 million. Due to the geo­ made by a commerical finance or factoring com­ graphical distances between offices of Trefoil and pany, and the servicing of such loans and other that of Keen (approximately 3,000 miles), and the extensions of credit for others. Such activities have fact that neither Trefoil nor Keen originate any been determined by the Board to be closely related loans in the service areas of the other, it does not to banking (12 CFR § 225.4(a)(1) and (3)). appear that competition exists between the two Notice of the application, affording opportunity firms. Further, in view of the relatively small size for interested persons to submit comments and of Keen, and of its estimated market shares (less views on the public interest factors, has been duly than one per cent), it would not appear that its published (39 Federal Register 33408). The time affiliation with Applicant would foreclose entry for filing comments and views has expired, and into any commercial financing market by others.5 the Board has considered all comments received Neither Trefoil nor Keen appears to be a likely in the light of the public interest factors set forth de novo entrant into any market in which the other in section 4(c)(8) of the Act (12 U.S.C. § competes. Thus, the Board concludes that con­ 1843(c)(8)). summation of the proposed transaction would have Applicant, the sixth largest banking organi­ no significantly adverse effects on either actual or zation in Pennsylvania, controls one bank (The potential competition. Fidelity Bank, Rosemont, Pennsylvania) with total Applicant’s acquisition of Keen would enhance domestic deposits of $1.5 billion, representing Keen’s access to financial resources necessary to approximately 3.9 per cent of the total deposits expand its commercial financing and factoring held by commercial banks in the State.2 Applicant operations. Those operations have not expanded also has wholly-owned nonbanking subsidiaries significantly since 1971. Consummation should engaged in the activities of real estate lending, produce further public benefits to the extent that advising a real estate investment trust, consumer the availability of additional commercial financing lending, and commerical financing, among others. and factoring facilities may be expected to in­ Keen lends funds on a secured basis usually crease, at least moderately, the volume of Keen’s receiving security in the form of accounts receiv­ business and to decrease interest rates in the rele­ able, inventory, machinery, equipment and real vant market area. There is no evidence in the estate.3 In addition, Keen purchases a small4 record indicating that acquisition of Keen by Ap­ trefoil Capital Corporation of California, Inc., would be plicant would result in any undue concentration wholly-owned by Applicant’s subsidiary, Trefoil Capital Cor­ of resources, unfair competition, conflicts of inporation, New York, New York. 2 All banking data are as of June 30, 1974, and reflect bank holding company formations and acquistions approved through October 31, 1974. 5 The relevant market in which Keen competes is the Los 3 Real estate never serves as the sole collateral for a loan Angeles Regional Area, covering eleven counties in the south­ by Keen, but, on occasion, serves as collateral in addition ern third of California and Mohave County in northwestern to other collateral. Arizona and Clark and Lincoln counties in southeastern Ne­ 4As of February 28, 1974, Keen’s purchased receivables vada. Trefoil competes in regional markets centered upon New amounted to $189,876. York City and Philadelphia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin □ May 1975 terests, unsound banking practices or other adverse Notice of the application, affording opportunity effects upon the public interest. for interested persons to submit comments and Based upon the foregoing and other consid­ views on the public interest factors, has been duly erations reflected in the record, the Board has published (40 Federal Register 839). The time for determined in accordance with the provisions of filing comments and views has expired, and the section 4(c)(8) of the Act that consummation of Board has considered the application and all com­ this proposal can reasonably be expected to pro­ ments received in the light of the public interest duce benefits to the public that outweigh possible factors set forth in section 4(c)(8) of the Act (12 adverse effects. Accordingly, the application is U.S.C. § 1843(c)(8)). The Insurance Commis­ hereby approved. This determination is subject to sioner for the State of Arkansas scheduled a hear­ the conditions set forth in section 225.4(c) of ing for the purpose of reviewing Applicant’s pro­ Regulation Y and to the Board’s authority to posal to determine whether it would violate rele­ require such modification or termination of the vant Arkansas statutes. On March 26, 1975, the activities of a holding company or any of its Insurance Commissioner issued an Order approv­ subsidiaries as the Board finds necessary to assure ing Applicant’s proposed reinsurance agreement. compliance with the provisions and purposes of Accordingly, the Arkansas statutes do not present the Act and the Board’s regulations and orders any impediment to the Board’s approval of the issued thereunder, or to prevent evasion thereof. application. The transaction shall be made not later than Applicant, the largest banking organization in three months after the effective date of this Order, Arkansas, controls three subsidiary banks with unless such period is extended for good cause by aggregate deposits of approximately $394 million, the Board or by the Federal Reserve Bank of representing approximately 7.8 per cent of the total Philadelphia, pursuant to authority delegated commercial bank deposits in the State.2 Applicant hereby. also engages, through nonbank5subsidiaries, in real By order of the Board of Governors, effective and personal property leasing, consumer finance, April 1, 1975. mortgage banking, data processing, and travel agency activities, and financial institution advisory Voting for this action: Vice Chairman Mitchell and services. Governors Bucher, Holland, Wallich, and Coldwell. Absent and not voting: Chairman Burns and Governor Consumers will engage de novo in the activity Sheehan. of underwriting, as reinsurer, credit life and credit (Signed) Theodore E. A llison, accident and health insurance directly related to [seal] Secretary of the Board. extensions of credit by Applicant’s subsidiary banks, and by Applicant’s industrial loan subsidi­ First Arkansas Bankstock Corporation, ary, National Credit Corporation, Pine Bluff, Ar­ kansas.3 Consumers will be qualified to underwrite Little Rock, Arkansas insurance directly only in Arizona, and accord­ . Order Approving Acquisition of Consumers ingly, the insurance sold by Applicant’s subsidi­ Protective Life Insurance Company aries in Arkansas will be directly underwritten by an unaffiliated insurance company qualified to do First Arkansas Bankstock Corporation, Little business in Arkansas and will thereafter be as­ Rock, Arkansas, a bank holding company within the meaning of the Bank Holding Company Act, 1 These extensions of credit include loans secured by second has applied for the Board’s approval, under section mortgages on real estate. Such loans would be essentially 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and equivalent to consumer finance loans, and in this instance range from six months to seven years in maturity and from $500 § 225.4(b)(2) of the Board’s Regulation Y (12 to $6,000 in amount. Age is not a factor in the rate charged CFR § 225.4(b)(2)), to acquire all of the voting for credit life insurance related to such loans. Such loans are shares of Consumers Protective Life Insurance not considered “long term” or “high value” within the mean­ ing of footnote 1 in the Board’s Order of May 21, 1973 Company (“Company”), Phoenix, Arizona, a approving the application of Northwest Bancorporation to company that would engage de novo in the activity acquire Banco Credit Life Insurance Company, 38 Fed. Reg. of underwriting, as reinsurer, credit life and credit 14205 (1973). 2Banking data are as of June 30, 1974. accident and health insurance directly related to 3 Officers and directors of Applicant control indirectly the extensions of credit1 by Applicant’s credit-grant­ First National Bank in Mena, Mena, Arkansas. The instant ing subsidiaries. Such activity has been determined application does not include the First National Bank in Mena, and, accordingly, Consumers would not reinsure credit life and by the Board to be closely related to banking (12 credit accident and health insurance sold in connection with CFR § 225.4(a)(10)). extensions of credit by First National Bank in Mena. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 325 signed or ceded to Consumers under a reinsurance the Board, or by the Federal Reserve Bank of St. agreement. Since this proposal involves a de novo Louis, pursuant to authority hereby delegated. acquisition, consummation of the transaction By order of the Board of Governors, effective would not have any adverse effects on existing April 28, 1975. or potential competition in any relevant market. Voting for this action: Chairman Burns and Gover­ Credit life and credit accident and health insur­ nors Mitchell, Bucher, Holland, Wallich, and Coldwell. ance is generally made available by banks and Absent and not voting: Governor Sheehan. other lenders and is designed to assure repayment of a loan in the event of death or disability of (Signed) G riffith L. G arwood, the borrower. In connection with the addition of [seal] Assistant Secretary of the Board. the underwriting of such insurance to the list of permissible activities for bank holding companies, the Board has stated: To assure that engaging in the underwriting of credit life and First Security Corporation, credit accident and health insurance can reasonably be expected Salt Lake City, U tah to be in the public interest, the Board will only approve applications in which the applicant demonstrates that approval will benefit the consumer or result in other public benefits. Order Conditionally Approving Acquisition of Normally, such a showing would be made by a projected Securities-Intermountain, Inc. reduction in rates or increase in policy benefits due to bank holding company performance of this service. First Security Corporation, Salt Lake City, Applicant has stated that it will provide reducing Utah, a bank holding company within the meaning term credit life insurance at rates which are 6.67 of the Bank Holding Company Act, has applied per cent below those presently being charged by for the Board’s approval, under section 4(c)(8) of Applicant’s subsidiaries.4 Applicant also states the Act and § 225.4(b)(2) of the Board’s Regula­ that it will reduce the rates which its subsidiaries tion Y, to acquire all of the common1 shares of presently charge for credit accident and health Securities-Intermountain, Inc., Portland, Oregon insurance by 5 per cent. The Board views the (“Simco”),2 a mortgage company that engages in proposed reductions in the premiums charged for the making and acquiring, for its own account and such insurance as a consideration favorable to the for the account of others, loans and other exten­ public interest. The Board concludes, therefore, sions of credit and the servicing of such loans for that Applicant’s proposal is procompetitive and in itself and for others; acting as an insurance agent, the public interest. through a wholly-owned subsidiary, with respect Based upon the foregoing and other consid­ to insurance directly related to said extensions of erations reflected in the record, the Board has credit and insurance otherwise sold as a matter determined that the balance of the public interest of convenience to borrowers, and participating as factors the Board is required to consider under an investment adviser to a real estate investment section 4(c)(8) is favorable. Accordingly, the ap­ trust through 4a 20 per cent ownership interest in plication is hereby approved. This determination Bancorp Management Advisors, Inc. Such activi­ is subject to the conditions set forth in section ties have been determined by the Board to be 225.4(c) of Regulation Y and to the Board’s au­ closely related to banking (12 CFR 225.4(a)(1), thority to require such modification or termination (3), (5), and (9)(ii)). of the activities of a holding company or any of Notice of the application, affording opportunity its subsidiaries as the Board finds necessary to for interested persons to submit comments and assure compliance with the provisions and pur­ views on the public interest factors, has been duly poses of the Act and the Board’s regulations and published (39 Federal Register 37544). The time orders issued thereunder, or to prevent evasion for filing comments and views has expired, and thereof. the Board has considered the application and all The transaction shall be made not later than comments received in the light of public interest three months after the effective date of this Order, factors set forth in section 4(c)(8) of the Act (12 unless such period is extended for good cause by U.S.C. 1843(c)(8)). 4 Applicant had applied to reinsure level term credit life *lt is proposed that all outstanding preferred shares of insurance on single payment loans. However, the March 26, Securities-Intermountain, Inc. would be retired prior to con­ 1975 Order of the Insurance Commissioner of the State of summation of the proposed acquisition. Arkansas found that the policies to be reinsured shall consist 2An application by U.S. Bancorp to acquire Simco was solely of reducing term policies. denied by the Board on January 31, 1972 (37 Fed. Reg. 2858). 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326 Federal Reserve Bulletin □ May 1975 Applicant controls eight subsidiary banks3 with insurance directly related to extensions of credit aggregate deposits of $1.4 billion.4 It is the largest by Simco to customers of Simco and to Simco bank holding company in Utah, holding 29.4 per itself. To some extent, Agency is currently en­ cent of that State’s commercial bank deposits. gaged in activities impermissible for bank holding Through certain of its nonbanking subsidiaries, companies insofar as Agency derives 39 per cent Applicant also engages in mortgage banking and of its aggregate insurance premium income from acting as agent for credit life and credit disability the sale of “convenience” insurance. Applicant insurance directly related to extensions of credit states that Agency has terminated solicitation of by subsidiaries of the holding company. such “convenience” insurance, that prior to con­ Simco, with a mortgage servicing portfolio of summation of the proposed transaction, the sale approximately $199 million (as of March 30, of such “convenience” insurance will be termi­ 1974), engages in a full range of mortgage banking nated and existing policies will be terminated activities including the origination, sale and serv­ without renewal upon their expiration date. icing of all types of mortgage loans. Its main office Thereafter, Applicant indirectly would only en­ is located in Portland, Oregon, and it operates gage in the sale of insurance in accordance with three offices in the State of Washington and two Regulation Y and the Board’s interpretation relat­ offices in the State of California. It appears that ing thereto. consummation of the acquisition would not elimi­ Additionally, Simco is engaged in land devel­ nate a significant amount of actual competition opment activities through three wholly-owned between Applicant and Simco since they are not subsidiaries: Corley Mortgage Company, Inland significant direct competitors of one another in any Homes, Inc., and River View Homes, Inc. Land mortgage banking market. Applicant’s mortgage development activities are not permissible for bank and banking subsidiaries operate primarily in the holding companies under Regulation Y .5 Appli­ States of Utah, Idaho, Colorado, and New M ex­ cant states that it would dispose of the impermis­ ico, while Simco operates in the States of Wash­ sible land development holdings6 of the three ington, Oregon, and California. Approximately subsidiaries within six months of the date of con­ $10 million, or 2.8 per cent, of Applicant’s $365 summation of the proposal, if the instant applica­ million servicing portfolio are mortgages on tion is approved by the Board. The Board’s action properties located in Washington, Oregon, and herein is conditioned upon such disposition. California and $1 million, or less than .5 per cent, Simco also participates with U.S. Bancorp, of Simco’s servicing portfolio of $199 million Portland, Oregon (“Bancorp”), a bank holding represent mortgages on properties in markets company, through Simco’s 20 per cent ownership served by mortgage and banking subsidiaries of interest in Bancorp Management Advisors, Inc. Applicant. Furthermore, the markets served by (“BM A”), Portland, Oregon, in the management Simco do not appear so concentrated that entry of a real estate investment trust, U.S. Bancorp by Applicant through de novo expansion would Realty and Mortgage Trust, Portland, Oregon, and produce such important benefits as to warrant in the making or acquisition of commercial and denial of this proposal. Simco’s market share does mortgage loans. The remaining 80 per cent of the not exceed 1.4 per cent in any market and it equity in BMA is held directly and indirectly by competes with numerous large commercial banks Bancorp. In its Order of January 31, 1972 denying and large mortgage companies in each market in Bancorp’s application to acquire shares of Simco, which it operates. On the basis of the facts of the Board found that an affiliation of the two record, any elimination of actual and probable companies would eliminate substantial existing future competition between Applicant and Simco competition in two geographic markets and ad­ resulting from consummation of the proposed ac­ versely affect potential competition in a third geo­ quisition appears minimal. graphic market. Thereafter, BMA was formed and Simco, indirectly, through Intermountain Insur­ the mutual interest of Bancorp and Simco was ance Agency (“Agency”), its subsidiary, also established. engages in the sale of homeowner’s, mortgage The Board has recognized that joint ventures redemption, credit accident and health and other require cooperation between venturers and that, where two venturers are competitors of one an­ 3Applicant controls six banks in Utah, one in Idaho, and one in Wyoming. The banks in Idaho and Wyoming were 512 CFR 225.126. owned by Applicant at the time of enactment of the Holding 6The term “impermissible land development holdings” as Company Act and are “grandfathered.” used herein includes raw land, income-producing real property 4Unless otherwise indicated, all financial data are as of June irrespective of whether construction has been completed and 30, 1974. single family dwelling units in various stages of construction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 327 other, such cooperation may decrease competition be reduced to less than 5 per cent of the premium in markets in which the two meet in direct compe­ income of Agency in accordance with the Board’s tition.7 That principle appears applicable to the Regulation Y, that Applicant dispose of the afore­ instant application, and the Board concludes that mentioned impermissible land development hold­ the performance of investment advisory services ings within six months of the consummation of by Simco through BMA gives rise to a serious this proposal and that Simco dispose of all shares possibility of decreased competition,8 a possible of BMA prior to consummation of the proposal. adverse effect not outweighed by any benefit to The approval further is subject to the conditions the public that may be reasonably expected to set forth in section 225.4(c) of Regulation Y and derive from such performance. to the Board’s authority to require such modifi­ It appears that consummation of this proposed cation or termination of the activities of a holding transaction would not result in any undue concen­ company or any of its subsidiaries as the Board tration of resources, conflicts of interests or other finds necessary to assure compliance with the adverse effect on the public interest. Applicant provisions and purposes of the Act and the Board’s states that affiliation with Simco should increase regulations and orders issued thereunder, or to the financial resources available to Simco and prevent evasion thereof. thereby enable it to increase the availability of The transaction shall be consummated not later credit to its customers. Simco has experienced than three months after the effective date of this steady losses of its market shares since 1970. Order, unless such period is extended for good Applicant expects to reverse those losses. Thus, cause by the Board or by the Federal Reserve Bank the Board regards public benefits considerations of San Francisco pursuant to authority delegated as lending slight weight toward approval of that hereby. portion of the application that does not relate to By order of the Board of Governors, April 21, BMA. As to that portion of the application con­ 1975. templating the indirect acquisition of shares of Voting for this action; Vice-Chairman Mitchell and BM A, the Board finds that no benefit to the public Governors Bucher, Holland, and Wallich. Absent and may reasonably be expected to derive therefrom. not voting: Chairman Burns and Governors Sheehan and Based upon the foregoing and other consid­ Coldwell. erations reflected in the record, the Board has (Signed) Theodore F. A llison, determined, in accordance with the provisions of [seal] Secretary of the Board. § 4(c)(8), that consummation of the portion of this proposal not related to BMA can reasonably be expected to result in benefits to the public that M emphis Trust Company, outweigh possible adverse effects. Accordingly, M emphis, Tennessee the application is hereby approved to the extent it contemplates the acquisition of shares of Simco, Order Denying Acquisition of Homeowners but is denied to the extent the application contem­ Savings and Loan Association, Inc. plates the indirect acquisition of shares of BMA. Memphis Trust Company, Memphis, Tennes­ This determination is subject to the condition that see, a bank holding company within the meaning the Agency’s premium income which is not di­ of the Bank Holding Company Act, has applied rectly related to an extension of credit or directly for the Board’s approval, under § 4(c)(8) of the related to the provision of other financial services Act and § 225.4(b)(2) of the Board’s Regulation 7Board’s Order of April 15, 1974, approving applications Y, to acquire 100 per cent of the permanent stock of the Fort Worth National Corporation, Fort Worth, Texas, of Homeowners Savings and Loan Association, and Shawmut Association, Inc., Boston, Massachusetts, 60 Inc., Collierville, Tennessee (“Company”), a Fed. Res. Bulletin 382, 384 (1974), 39 Fed. Reg. 14255, 14256 (1974). company that proposes to engage in the de novo 8The prospect of decreased competition resulting from the operation of a savings and loan association. BMA joint venture is not limited to the area of competition between Simco and Bancorp. Bancorp is the largest banking Notice of the application, affording opportunity organization in Oregon; Applicant is the largest banking orga­ for interested persons to submit comments and nization in Utah. Both are substantial banking organizations views on whether such activity is closely related in the Northwestern United States. In the past, the two organi­ zations have evidenced an inclination toward cooperation at to banking, as well as on the public interest fac­ least in the area of provision of data processing services, having tors, has been duly published (38 Federal Register filed, but subsequently withdrawn, an application to engage in that activity in a joint venture. The instant application 32849). The time for filing comments and views suggests that an inclination toward cooperation may still exist. has expired and those filed, including testimony Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin □ May 1975 and exhibits received at an oral presentation before Bank, as of June 30, 1973,4 was the fourth available members of the Board, held October 30 largest of the nine commercial banks with offices and 31, 1973, have been considered. in Shelby County. However, it held only 3.8 per Applicant controls one bank located in the State cent of the time and savings deposits in the of Tennessee,1 Memphis Bank & Trust Company, County. The three largest of the nine commercial Memphis, Tennessee (“Bank”), with deposits of banks in Shelby County held more than 85 per $120 million, which represent approximately 1 per cent of the total time and savings deposits held cent of the total deposits in commercial banks in in the County. Bank held the eighth largest real Tennessee. Applicant is the ninth largest banking estate loan portfolio among the 13 commercial organization in the State.2 banks and savings and loan associations in the Company, chartered in 1972, has not com­ County. Its real estate loans amounted to approxi­ menced operation. Company would operate in the mately 1.6 per cent of the total amount of real manner of a traditional savings and loan associa­ estate loans held by commercial banks and savings tion. Its office would be located in Collierville, and loan associations in the County. Tennessee, approximately 25 miles southeast of Time and savings deposit and real estate loan downtown Memphis. markets approximating Shelby County are con­ The Board has previously considered the nature centrated. Bank, however, is not dominant in and the structure of the savings and loan industry either field. Consummation of Applicant’s pro­ in connection with the application of American posal, rather than eliminating actual or probable Fletcher Corporation to acquire shares of South­ future competition, may increase competition as west Savings and Loan Association.3 The record it appears to represent a method by which Appli­ of that proceeding has been made a part of this cant would reach customers for those services in application and the Board concludes, as it was the Collierville area in a more direct fashion. There compelled to in connection with that case, that is no savings and loan association within a the activity in which Company would engage is twelve-mile radius of Company’s proposed office, closely related to banking. Whether it is a “proper despite the rapid economic development that the incident thereto” within the meaning of section Collierville area is experiencing. Although Bank 4(c)(8) of the Act requires a determination whether may lawfully establish a branch office in Collier­ its performance by Company as an affiliate of ville, Applicant’s entry into Collierville through Applicant can reasonably be expected to produce Company may constitute a greater benefit to time benefits to the public that outweigh possible ad­ and savings depositors and residential real estate verse effects. borrowers in view of the higher interest rates Four savings and loan associations operate Company may pay on such deposits and the greater offices in Shelby County. The largest held approx­ emphasis that Company may place on residential imately 78 per cent of the total assets held by mortgages. savings and loan associations located in Shelby The Board has previously expressed the view County, as of June 30, 1973. At that time, that that at this time bank holding companies generally association held the largest amount of real estate should slow their rate of expansion into new ac­ loans held by all 13 Shelby County banks and tivities and should direct their energies toward savings and loan associations, approximately 47 strengthening existing operations, particularly per cent. The four largest such financial institutions where such expansion may be into new activities held more than 86 per cent of the real estate loans in which bank holding companies have not pre­ held by the 13. Applicant does not operate a viously engaged.5 That view is especially applica­ savings and loan association although it does indi­ ble to bank holding companies applying to acquire rectly, through Bank, engage in the receipt of or form companies which are or would be highly deposits and, through Bank, engage in the making leveraged and which would require continuing of mortgage loans. infusions of capital.6 Here Company will be lo­ 4 There is no reason to believe that any significant change applicant also owns 24.8 and 22 per cent respectively of has occurred in the textual data since June 30, 1973. the outstanding voting shares of two banks located in the State 5 See Order of September 9, 1974, concerning the un­ of Mississippi. derwriting of real estate mortgage guaranty insurance, 39 2Banking data are as of June 30, 1974. Federal Register 33712, 33713, 60 Fed. Res. Bulletin 727 3 Order of November 4, 1974, denying application of Amer­ (1974). ican Fletcher Corporation, Indianapolis, Indiana, to acquire 6 See Order of June 29, 1973, denying application of Chem­ shares of Southwest Savings and Loan Association, Phoenix, ical New York Corporation to acquire CNA Nuclear Leasing, Arizona, 39 Federal Register 39912 (1974); 60 Fed. Res. Inc., 38 Federal Register 18407, 18408 (1973), 59 Fed. Res. Bulletin 868 (1974). Bulletin 698, 699 (1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 329 cated in a rapidly developing area southeast of Midlantic Commercial Corporation, all of the vot­ Memphis, an area in which no other savings and ing shares of Great Eastern Leasing Corporation, loan associations currently maintain offices, and New York, New York (“Company”), a company Applicant anticipates significant growth by Com­ that engages in the activity of full pay-out leasing pany. That growth would require continuing infu­ and equipment financing.1 Such activity has been sion of capital by Applicant into Company. determined by the Board to be closely related to The Board has frequently reiterated its view that banking (12 CFR 225.4(a)(6)). the primary role of a bank holding company should Notice of the application, affording opportunity be to serve as a source of financial strength and for interested persons to submit comments and support for its subsidiaries. The financial and views on the public interest factors, has been duly managerial resources of a bank holding company published (40 Federal Register 1571). The time should not be unduly diverted from that role. The for filing comments and views has expired, and formation and acquisition of Company, even ab­ the Board has considered all comments received sent any commitment by Applicant to inject capital in the light of the public interest factors set forth into Company, would divert its resources away in section 4(c)(8) of the Act (12 U.S.C. 1843 from Bank’s probable future needs. Although (c)(8)). consummation of the proposed transaction would Applicant is the third largest banking organi­ increase competition in Shelby County mortgage zation in New Jersey with approximately 7 per and savings deposit markets by providing a new cent of the total deposits in commercial banks in convenient alternative source of such services, the State. Applicant controls eight banks with such diversion constitutes a significant adverse aggregate deposits of approximately $1.4 billion.2 effect of the proposed affiliation that is not out­ Company, organized in 1968, has total assets of weighed, at this time and under these circum­ $1.9 million.3 Company’s leasing activities in­ stances, in the Board’s judgment, by any benefits volve to equal extents both direct and vendorto the public that can reasonably be expected to originated leases. Most of its direct leases involve be produced by the affiliation. printing presses and machine tools, while the ven­ Based upon the foregoing and other consid­ dor-originated leases are in the office machine erations reflected in the record, the Board is unable field. Most of Company’s leases are of equipment to determine, under section 4(c)(8) of the Act, that valued under $25,000. Company operates pri­ the proposed affiliation can reasonably be expected marily in the Metropolitan New York area market, to produce benefits to the public that outweigh approximated by southeastern New York State, the possible adverse effects. Accordingly, the appli­ northern Counties of New Jersey, and the southern cation is hereby denied. Counties of Connecticut. Applicant also engages By order of the Board of Governors, effective in leasing activity in the same market through a April 10, 1975. department of its lead bank, Midlantic National Bank and also through Midlantic Commercial Voting for this action: Chairman Burns and Gover­ nors Sheehan, Bucher, Holland, Wallich, and Coldwell. Corporation, a subsidiary. Through Midlantic Na­ Absent and not voting: Governor Mitchell. tional Bank Applicant held approximately $6.5 (Signed) Theodore E. A llison, million in leasing receivables. Midlantic Com­ [seal] Secretary of the Board. mercial Co. commenced operations de novo in August, 1974. Although some existing and future competition would therefore be eliminated as a result of this proposal, in view of the large number M idlantic Banks Inc., of competitors and the intensity of competition in W est Orange, N ew Jersey the New York market, such a reduction in compe­ Order Approving Acquisition of tition as would occur would not be significant. Great Eastern Leasing Corporation There is no evidence in the record that consum­ mation of the proposed transaction would result Midlantic Banks Inc., West Orange, New Jer­ in undue concentration of resources, conflicts of sey, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under section 4(c)(8) of 1 Non-lease equipment financing constitutes less than 10 per the Act (12 U.S.C. 1843(c)(8)) and section cent of Company’s volume and is a method of financing the same types of equipment as that leased by Company. 225.4(b)(2) of the Board’s Regulation Y (12 CFR 2Banking data are as of June 30, 1974. 225.4(b)(2)), to acquire through its subsidiary, 3 Company data are as of December 31, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin □ May 1975 interests, unsound banking practices, unfair com­ manager, and counselor, investing, re-investing petition, or other adverse effects. Furthermore, it and generally managing the funds entrusted to it appears that Company, as a subsidiary of Midlan- in its fiduciary or advisory capacity, and other tic Commercial Co., will be able to offer its incidental activities necessary to conduct a general present and future customers a wider range of trust company business. These activities would be financial services than it is currently providing. performed by the American Trust Company, Inc., Based upon the foregoing and other consid­ Camden, South Carolina, a wholly-owned subsid­ erations reflected in the record, the Board has iary of NCNB Corporation. determined, in accordance with section 4(c)(8) of After notice and hearing, the Board approved the Act, that consummation of this proposal can Applicant’s proposal on March 9, 19731 to the reasonably be expected to produce benefits to the extent permitted by South Carolina law. On that public that outweigh possible adverse effects. Ac­ date, certain South Carolina statutes appeared to cordingly, the application is hereby approved. This prohibit any corporation controlled by a non-South determination is subject to the conditions set forth Carolina corporation from serving as an executor, in section 225.4(c) of Regulation Y (12 CFR administrator, or testamentary trustee in South 225.4(c)) and to the Board’s authority to require Carolina.2 On April 6, 1973, Applicant petitioned such modification or termination of the activities for review of the Board’s Order in the United of a holding company or any of its subsidiaries States Court of Appeals for the District of Colum­ as the Board finds necessary to assure compliance bia. On May 31, 1973, Applicant and American with the provisions and purposes of the Act and Trust Company instituted suit in the United States the Board’s regulations and orders issued there­ District Court for the District of South Carolina under, or to prevent evasion thereof. for a declaratory judgment that the pertinent South The transaction shall be made not later than Carolina statutes were invalid on the ground that three months after the effective date of this Order, they contravened the Constitution of the United unless such period is extended for good cause by States. On September 3, 1974, that Court entered the Board or by the Federal Reserve Bank of New an order declaring that the pertinent statutes denied York pursuant to authority delegated hereby. the American Trust Company equal protection of By order of the Board of Governors, effective the laws in violation of the Fourteenth Amendment April 18, 1975. of the United States Constitution, and permanently enjoining certain South Carolina public officials Voting for this action: Governors Bucher, Holland, “from prohibiting American Trust Company from Wallich, and Coldwell. Absent and not voting: Chair­ man Bums and Governors Mitchell and Sheehan. serving as an executor, administrator, or testa­ mentary trustee of the estate of any person domi­ (Signed) Theodore E. A llison, ciled in South Carolina at the time of his death Secretary of the Board. [seal] because it is controlled by [Applicant].” On De­ cember 30, 1974, the U.S. Court of Appeals for the District of Columbia remanded this matter to the Board. NCNB Corporation, In its Statement accompanying its Order of Charlotte, North Carolina March 9, 1973, the Board indicated that, but for Order Approving Proposal to Operate a the pertinent South Carolina statutes, it would have Trust Company in South Carolina approved the entire proposal. The invalidity of those statutes now having been established, the NCNB Corporation, Charlotte, North Carolina, Board, for reasons set forth in the Board’s State­ a bank holding company within the meaning of ment of March 9, 1973 has determined, in ac­ the Bank Holding Company Act, has proposed cordance with section 4(c)(8) of the Bank Holding under § 4(c)(8) of the Act and § 225.4(b)(1) of Company Act (12 U.S.C. § 1843(c)(8)), that con­ the Board’s Regulation Y, to engage indirectly de summation of Applicant’s proposal can reasonably novo in the performance of certain activities that board’s Order of March 9, 1973 Conditionally Approving may be performed by a trust company, including Proposal of NCNB Corporation to Operate a Trust Company acting as executor, administrator, receiver, as­ in South Carolina, 59 Fed. Res. Bulletin 305 (1973), 38 Fed. Reg. 7364 (1973). signee, trustee and in any other fiduciary capacity, 2 Code of Laws of South Carolina, §§ 19-592 and 67-53(a)(3) acting as an investment and financial advisor, (1972 Supp.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 331 be expected to produce benefits to the public that The transaction shall be consummated not later outweigh possible adverse effects. Accordingly, than three months after the effective date of this the proposal is hereby approved. This determi­ Order, unless such period is extended for good nation is subject to the conditions set forth in cause by the Board or by the Federal Reserve Bank section 225.4(c) of Regulation Y and to the of Richmond. Board’s authority to require such modification or By order of the Board of Governors, April 29, termination of the activities of a holding company 1975. or any of its subsidiaries as the Board finds neces­ Voting for this action: Chairman Burns and Gover­ sary to assure compliance with the provisions and nors Mitchell, Bucher, Holland, Wallich, and Coldwell. Absent and not voting: Governor Sheehan. purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion (Signed) G riffith L. G arwood, thereof. [seal] Assistant Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE ORDERS APPROVED BY THE BOARD OF GOVERNORS During March or April 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. 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 Hawkeye B ancorporation, Farmers & Merchants State 4/28/75 40 F.R. 19707 Des M oines, Iowa Bank, Lake Mills, Iowa 5/6/75 T.N.B. Financial Corp., Ware Trust Company, Ware, 4/9/75 40 F.R. 17201 Springfield, Massachusetts Massachusetts 4/17/75 United Banks of Colorado, United Bank of Steamboat 4/11/75 40 F.R. 17347 Inc., Denver, Colorado Springs, Steamboat Springs, 4/17/75 Colorado 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 First Commerical Banks Inc., FCB Life Insurance, Ltd., 3/31/75 40 F.R. 15454 Albany, New York Phoenix, Arizona 4/7/75 First National Bancorporation, The Grand Valley Agency, 4/23/75 40 F.R. 19707 Inc., Denver, Colorado Grand Junction, Colorado 5/6/75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin □ May 1975 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 Effective Register Applicant Bank(s) (or activity) date citation American Corporation, American Security Insurance agent 3/31/75 40 F.R. 15452 North Platte, Nebraska Bank, North for the sale of 4/7/75 Platte, Nebraska credit related insurance F&M Bancorporation, The F&M Bank and Inland Life In­ 3/13/75 40 F.R. 13044 Tulsa, Oklahoma Trust Company ; surance Com­ 3/24/75 and Famisco, pany, Tulsa, Inc., both located Oklahoma in Tulsa, Oklahoma Tipton Insurance Agency, The Tipton State Tipton Insurance 3/17/75 40 F.R. 13019 Inc., Tipton, Kansas Bank, Tipton, Agency, Tipton, 3/24/75 Kansas Kansas ORDERS APPROVED BY THE SECRETARY OF THE BOARD During April 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. ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATION TO MERGE BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Homewood Bancorporation, Bank of Homewood, 4/8/75 40 F.R. 16885 Inc., Homewood, Illinois Homewood, Illinois 4/15/75 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 First National Corporation First National Bank and 4/24/75 40 F.R. 19543 of Oak Brook, Oak Trust Company of Oak 5/5/75 Brook, Illinois Brook, Oak Brook, Illinois ORDERS APPROVED BY FEDERAL RESERVE BANKS During April 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 333 ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Federal Reserve Effective Register Applicant Bank(s) Bank date citation Bankshares of Florida, Inc., First National Bank of Atlanta 4/28/75 40 F.R. 19706 Hollywood, Florida Hollywood; Holly­ 5/6/75 wood National Bank; First National Bank of Hallandale; First National Bank of Moore Haven; and First National Bank of Miramar, all in Florida ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Reserve Effective Register Applicant Bank(s) Bank date citation Country Agencies & Invest­ Bank of Odessa, Kansas City 4/24/75 40 F.R. 19541 ments, Inc., Odessa, Odessa, Missouri 5/5/75 Missouri Country Agencies & Invest­ La Monte Community Kansas City 4/24/75 40 F.R. 19541 ments, Inc., Odessa, Bank, La Monte, 5/5/75 Missouri Missouri First Financial Group of Colonial Trust Boston 4/22/75 40 F.R. 19542 New Hampshire, Inc., Company, Nashua, 5/5/75 Manchester, New New Hampshire Hampshire First National Charter The Aurora Bank, Kansas City 4/16/75 40 F.R. 18600 Corporation, Kansas Aurora, Missouri 4/29/75 City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

335 Announcements RESIGNATION OF MR. SHEEHAN For more than three years, you have served AS MEMBER OF THE BOARD OF the Board and our Nation with devotion and distinction. I know that the rapid and funda­ GOVERNORS mental changes in the world economy and our own country’s economic problems, par­ Governor John E. Sheehan, a Member of the ticularly during recent months, have made Board of Governors of the Federal Reserve Sys­ the work of the Board especially difficult tem, has announced his resignation from the and challenging. In addition, as you under­ stand so well, the unique responsibilities of Board, effective June 1, 1975. the Board within our governmental system Governor Sheehan’s letter of resignation to require the very best in terms of sound President Ford and the President’s letter of ac­ judgment, independence and skill from some ceptance follow: of the most capable and dedicated individ­ uals in public service. You have fulfilled April 15, 1975 each of these requirements with a rare blend of wisdom, energy and experience, thereby Dear Mr. President: earning my highest esteem and the admira­ tion of your colleagues. Please accept my resignation as a Member of the Board of Governors of the Federal Now as you return to private life, I hope Reserve System, effective June 1, 1975, or you will always look back with pride on the at such earlier date following your receipt contributions you have made to a more effi­ of this letter as may suit your convenience. cient and responsible government and to the improved well-being of all our fellow citi­ The critical role which this central bank zens. It is only through the willingness of plays in the life of the Nation can hardly people such as you to serve that our system be overstated. Thus, to serve as a Member can receive its needed breadth of views and of this Board is a uniquely satisfying privi­ talents. lege and experience. My appreciation of this opportunity is the greater for having served You may be sure you take with you my with associate members possessing the warm best wishes for your continued success highest sense of integrity and public dedica­ and happiness. tion. Sincerely, In executing the duties assigned to us by s/Gerald R. Ford the Congress, this Board enjoys the support of a truly brilliant staff unmatched in my experience, and said by informed observers CHANGE IN DISCOUNT RATE to be the finest in government. It has been a pleasure to work with them. The Board of Governors approved actions by the In closing, may I suggest that it might directors of the Federal Reserve Banks of Boston, be of benefit to you if we met before I depart New York, Philadelphia, Cleveland, Richmond, Washington in order that I might share with Atlanta, Chicago, St. Louis, Kansas City, and you some of the impressions I have gained Dallas, reducing the discount rates of those Banks in these years of public service. from 6V4 per cent to 6 per cent, effective May Sincerely yours, 16. The Board subsequently approved similar ac­ s/John E. Sheehan tions by the directors of the Federal Reserve Banks of San Francisco, effective May 19, and of Min­ THE WHITE HOUSE neapolis, effective May 23. The action was taken in recognition of declines April 22, 1975 that have occurred recently in other short-term interest rates and is intended to bring the discount Dear Jack: rate into better alignment with short-term rates I have your letter of April 15, and it is with generally. deep regret that I accept your resignation as The discount rate is the interest rate charged a Member of the Board of Governors of the Federal Reserve System, effective June 1, member commercial banks when they borrow from 1975, as you requested. their district Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 Federal Reserve Bulletin □ May 1975 PILOT SURVEY ON POSSIBLE The Act requires that consumers be given a HOUSING DISCRIMINATION Uniform Disclosure/Settlement Statement at the time of lender commitment (but in no case less The Board of Governors on May 6, 1975, made than 12 days before settlement) and again at the available for public inspection data collected in time of settlement in home purchase credit trans­ connection with a pilot survey on possible housing actions. discrimination. This statement will contain all information re­ The purpose of the survey was to attempt to quired to be disclosed under the Truth in Lending determine if discrimination against minorities Act. The Federal Reserve Board prepared this part occurs in the granting of credit for home improve­ of the statement since it is the rule-making agency ments and home mortgages, and, if so, whether under the Truth in Lending Act. this type of survey could identify and measure it. The new form is accompanied by instructions Such discrimination is forbidden by the 1968 Civil for its use. The form will be the third page of Rights Act. the Uniform Disclosure/Settlement Statement. The data are based on a fair housing survey The Board also published an interpretation of conducted in six metropolitan areas from June 1 its Regulation Z— Truth in Lending— in connec­ through November 30, 1974, by the Federal Re­ tion with the disclosure requirement. serve, Federal Deposit Insurance Corporation, Comptroller of the Currency, and the Federal EXTENDED SUSPENSION OF Home Loan Bank Board, using a questionnaire SAME-DAY CREDIT RESTRICTION developed by the Federal Reserve and the FDIC. FOR STOCKS The six metropolitan areas covered by the Fed­ eral Reserve-Federal Deposit Insurance Corpora­ The Board of Governors on May 1, 1975, ex­ tion survey were Baltim ore, Jersey City, tended until September 30 a suspension of the rule Tampa-St. Petersburg, Galveston-Texas City, that normally applies to the use of the same-day Jackson in Mississippi, and Vallejo-Fairfieldsubstitution privilege in stock margin accounts. Napa in California. (See November 1974 Bulletin, p. 802.) The Eighteen metropolitan areas were surveyed in extension will allow time for further consideration all. The Comptroller of the Currency and the by the Board and consultation with interested Federal Home Loan Bank Board collected some­ parties of the impact of the rule on margin cus­ what different data for the other 12 metropolitan tomers, brokerage firms, and the stock market areas surveyed. itself. The survey did not yield definitive evidence with respect to whether discrimination occurs in resi­ CHANGES IN dential lending. The usefulness of the data was BOARD STAFF lessened by the low level of mortgage activity during the period of the survey. The Board of Governors has announced the fol­ The data are available for inspection at the lowing appointments to its official staff: Board’s offices, at the Federal Reserve Banks, and John D. Hawke, Jr., Partner in the Washington, at the Federal Deposit Insurance Corporation of­ D.C., law firm of Arnold and Porter and adjunct fice in Washington. professor of law at the Georgetown University Law Center, as General Counsel in the Legal TRUTH IN LENDING Division, effective April 28, 1975. Mr. Hawke DISCLOSURE FORM received a B.A. from Yale University and an LL.B. from the Columbia University School of The Board of Governors on May 12, 1975, an­ Law. nounced the adoption of a Truth in Lending dis­ Jay Paul Brenneman, Legislative Analyst, Of­ closure form to assist consumers in understanding fice of Management and Budget, as Special As­ the credit terms of home purchase transactions. sistant to the Board, effective May 14, 1975. Mr. The new form will be part of a combined Brenneman holds a B.A. from Franklin and Mar­ settlement and credit cost form developed by the shall College and an M .A. from the University Department of Housing and Urban Development of Tennessee. to implement the requirements of the Real Estate Bruce M. Beardsley, Director of Computing Settlement Procedures Act of 1974. Science, Department of the Treasury, as Associate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 337 ASSETS AND LIABILITIES OF Director of the Division of Data Processing, ef­ fective June 9, 1975. Mr. Beardsley holds a B.S. LARGE COMMERCIAL BANKS, from Brigham Young University and has also 1974—ERRATUM taken graduate work at U.C.L.A. In addition, the Board announced the promotion Figures for total loans (gross) adjusted and total of William H. Wallace from Assistant Director to loans and investments (gross) adjusted shown in Associate Director in the Division of Federal Re­ the adjustment bank (bottom) line of the table that serve Bank Operations, effective May 25, 1975. appeared on p. A-82 of the April Bulletin as Mr. W allace will assume the responsibilities of —891 and —1,211 should have been —755 and E. Maurice McWhirter who is on extended leave. — 1,075, respectively. DATA SERIES ON ADMISSION OF STATE BANKS TO LOAN COMMITMENTS MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The new statistical series on loan commitments at selected large commercial banks (see April 1975 The following banks were admitted to membership Bulletin, pp. 226-28) is now available on a in the Federal Reserve System during the period monthly basis. The G.21 statistical release will April 16, 1975, through May 15, 1975: cover both unused commitments and outstanding Michigan loans under commitments at 138 large commercial Southfield...............The Detroit Bank— Southfield banks. The release may be obtained from Publica­ South Dakota tions Services, Division of Administrative Serv­ Sioux Falls....................SunBank of South Dakota ices, Board of Governors of the Federal Reserve Virginia System, Washington, D.C. 20551. Richmond .. .Bank of Virginia Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

339 Industrial Production Released for publication May 15 been curtailed sharply further in early May. Fol­ lowing a reduction of a fifth since last autumn— which resulted in a substantial lowering of pro­ Industrial production declined by an estimated 0.4 ducers’ inventories— output of nondurable materi­ per cent in April, less than the March decline and als leveled off in April. Textile production, how­ substantially under the sharp drops of last winter. ever, increased further. The index during April was 109.4 per cent of the 1967 average and about 13 per cent below Sep­ INDUSTRIAL PRODUCTION tember 1974. During April an upturn in output Seasonally adjusted, ratio scale, 1967=100 140 of consumer goods was offset by further declines in business equipment, steel, and other durable goods materials. (On a revised basis, the index declined by 1.3 per cent in March and 2.2 per cent in February.) Consumer goods production rose 1 per cent in April, reflecting mainly a 13 per cent increase in autos and some gain in output of nondurable 1971 1973 consumer goods. Auto assemblies were at a 6.3 _ CONSUMER GOODS: million unit annual rate. Output exceeded sales and DURABLE / new-car stocks rose by about 5 per cent; produc­ "nondurable tion increases previously scheduled for the next few months are being scaled down. Output of business equipment, already down 11 per cent since last September, declined about IV2 per cent further in April. Production of industrial materials was reduced 1.4 per cent further in April. Durable materials, such as basic metals and equipment parts, experi­ 1969 1971 1973 1975 1969 1971 1973 1975 enced additional cutbacks in production as inven­ F.R. indexes, seasonally adjusted. Latest figures: April. tory liquidation continued. Raw steel output has *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 Feb. Mar.p Apr.e Q3 Q4 Ql Total .......................................................... 111.2 109.8 109.4 -.4 -12.4 -.3 -13.1 -32.0 Products, total .................................................. 113.6 112.6 112.8 .2 -8.1 .6 -8.7 -23.5 Final products ............................................... 113.1 112.4 112.5 .1 -6.8 2.0 -6.5 -23.2 Consumer goods .................................... 118.8 118.4 119.6 1.0 -6.9 0 -10.8 -21.9 Durable goods ................................... 101.4 103.8 106.4 2.5 -18.7 -4.5 -37.0 -52.9 Nondurable goods ........................... 125.4 124.0 124.6 .5 -2.4 2.2 -1.2 -10.9 Business equipment ............................. 119.3 117.5 115.9 -1.4 -9.4 4.0 -2.4 -31.7 Intermediate products ............................... 116.0 113.9 113.8 -.1 -12.1 -3.7 -15.9 -23.1 Construction products ......................... 113.1 111.6 111.4 -.2 -14.8 -7.7 -21.6 -24.8 Materials .............................................................. 107.4 105.4 103.9 -1.4 -19.3 -.9 -21.5 -45.7 p Preliminary. ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS GUIDE TO TABULAR PRESENTA­ A 32 Federal finance TION ON INSIDE BACK COVER A 34 [/.S. Government securities A 37 Federally sponsored credit agencies STATISTICAL RELEASES: REFER­ A 38 Security issues ENCE ON INSIDE BACK COVER A 41 Business finance A 42 Real estate credit U.S. STATISTICS A 45 Consumer credit A 48 Industrial production A 2 Member bank reserves, Federal A 50 Business activity Reserve Bank credit, and related items A 50 Construction A 5 Federal funds—Money market banks A 52 Labor force, employment, A 6 Reserve Bank interest rates unemployment A 7 Reserve requirements A 53 Consumer prices A 8 Maximum interest rates; margin A 53 Wholesale prices requirements A 54 National product and income A 9 Open market account A 56 F/ow of funds A 10 Federal Reserve Banks A 11 Bank debits INTERNATIONAL STATISTICS: A 12 Money stock A 13 Bank reserves; bank credit A 58 (7. S. balance of payments A 14 Commercial banks, by classes A 59 Foreign trade A 18 Weekly reporting banks A 59 I/. S. reserve assets A 23 Business loans of banks A 60 Gold reserves of central banks and A 24 Demand deposit ownership governments A 25 Loan sales by banks A 61 International capital transactions of the A 25 Open market paper United States A 26 Interest rates A 74 Open market rates A 29 Security markets A 75 Central bank rates A 29 Stocfc market credit A 75 Foreign exchange rates A 30 Savings institutions A 82 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 BANK RESERVES AND RELATED ITEMS □ MAY 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 Float3 F.R. Total5 account stand­ Total out­ repur­ assets4 ing right2 chase agree­ ment Averages of daily figures 1939—Dec.. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec.. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec.. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec.. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1969—Dec.. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec.. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec.. 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—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—Jan......... 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........ 84,847 84,398 449 106 1,994 3,142 90,819 11,620 400 9,362 Apr.p. .. 87,080 86,117 963 110 2,164 3,237 93,317 11,620 400 9,410 Week ending— 1975—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 ’ i i oi 3 * 155 1,685 3,197 92,719 11,620 400 9,386 Apr. 2.. 86,518 86,518 51 2,356 3,083 92,679 11,620 400 9,400 9.. 84,508 84,508 30 2,504 3,086 90,793 11,621 400 9,399 16.. 85,109 84,705 404 22 1,857 3,125 90,796 11,620 400 9,407 23*. 87,465 86,682 783 165 2,090 3,315 93,745 11,620 400 9,415 30 p. 91,411 88,467 2,944 241 1,786 3,281 97,578 11,620 400 9,422 End of month 1975—Feb... 86,416 84,152 2,264 77 1,370 3,005 91,861 11,621 400 9,371 Mar... 86,608 86,608 60 2,132 3,072 92,537 11,620 400 9,453 Apr^. 93,917 88,812 *5 ^ 105 ’ 1,538 2,117 3,297 102,054 11,620 400 9,426 Wednesday 1975—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 n;,621 400 9,281 26. 86,886 84,121 '2,765' 834 2,357 2,740 93,696 ,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 n:,620 400 9,343 18. 83,955 83,955 854 2,637 3,161 91,262 Hi,620 400 9,348 26.. 88,078 85,991 2,087 813 2,163 3,139 95,221 11 =,620 400 9,389 Apr. 2. 86,358 86,358 42 2,278 3,067 92,422 11.,621 400 9,396 9. 83,810 83,810 14 3,035 3,134 90,643 Hi,620 400 9,403 16. 87,741 84,915 2,826 48 2,922 3,146 94,736 11.,620 400 9,412 23. 88,387 86.977 1,410 1,068 2,855 3,260 96,336 ii;,620 400 9,419 30. 93,917 88,812 5,105 1,538 2,117 3,297 102,054 ii;,620 400 9,426 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 industrial loan program was discontinued. For holdings of acceptances Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 counts 4 and With Cur­ tion Treas­ For­ Other3,6 capital4 F.R. rency ury eign Banks and coin 7 Averages of daily figures 7,609 2,402 616 739 248 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—bee. 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. 72,176 308 1,712 328 702 2,985 29,469 6,402 35,929 . 1974—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. 77,692 277 1,887 363 958 3,076 27,948 6,831 34,779 .............Mar. 78,377 309 3,532 307 718 3,137 28,367 6,878 35,245 .............Apr.* Week ending— r76,469 r250 2,634 342 848 3,741 29,543 7,431 36,974 . 1975—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 28,333 6,486 34,819 ...........26 78,030 307 2,826 476 1,039 3,160 28,261 6,826 35,087 . Apr. 2 78,355 309 1,919 359 646 2.952 27,671 6,992 34,663 .............9 78,672 318 976 267 642 3,093 28,254 7,041 35,295 ...........16 78,384 306 3,523 289 660 3,194 28,824 6,477 35,301 ...........23* 78,123 300 7,902 279 576 3.342 28,498 7,014 35,512 ............30* End of month 76,834 254 2,884 409 901 3,326 28,644 6,950 35,594 . 1975—Feb. 78,062 307 4,269 402 709 3,120 27,139 6,826 33,965 .............Mar. 78,340 300 8,363 270 573 3,452 32,202 7,014 39,216 .............Apr.* Wednesday 76,860 249 779 277 732 4,859 32,175 7,431 39.606 . 1975—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 28,308 950 35,258 .Mar. 5 78,058 271 « 314 989 2,893 25,695 296 32,991 ...........12 77,980 297 1,795 321 870 2,971 28.396 627 35,023 .........19 78,033 306 3,554 428 792 3,080 30,437 486 36,923 ..........26 78,322 312 2,430 429 795 2,908 28,642 6,826 35,468 .Apr. 2 78,764 329 467 267 595 3,030 28,614 6,992 35.606 ...............9 78,749 308 1,638 296 615 3,166 31.396 7,041 38,437 ...........16 78,380 308 6,191 249 640 3,261 28,746 6,477 35,223 ...........23* 78,340 300 8,363 270 573 3,452 32,202 7,014 39,216 ...........30* 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 □ MAY 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 Reserves Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ cess held i quired sonal ings ings ings 11,473 6,462 5,011 3 2,611 540 1,188 671 12,812 9,422 3,390 5 989 295 1,303 1 804 16,027 14,536 1,491 334 48 192 14 418 96 ,011 17,391 16,364 1,027 142 125 58 8 5 232 50 663 19,283 18,527 756 87 29 19 4 8 100 20 623 22,719 22,267 452 454 41 111 15 23 67 228 330 25,260 24,915 345 238 18 40 8 13 50 105 267 27,221 26,766 455 765 100 230 15 85 90 270 250 28,031 27,774 257 1,086 56 259 18 27 6 479 177 29,265 28,993 272 321 34 25 7 4 42 264 189 31,329 31,164 165 107 25 35 1 8 -35 22 174 31,353 31,134 219 1,049 -20 301 - 13 55 -42 429 160 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 35,929 35,771 158 1,714 50 19 114 69 41 -58 987 70 36,519 36,325 194 2,580 102 -20 772 29 20 -4 939 131 36,390 36,259 131 3,000 130 -26 1,303 -8 51 26 799 89 37,338 37,161 177 3,308 149 45 1,457 19 70 -12 848 125 37,029 36,851 178 3,351 165 -58 1,464 6 23 78 860 152 37,076 36,885 191 3,287 139 133 1,662 20 17 -77 792 115 36,796 36,705 91 1,793 117 -49 502 -18 36 36 569 122 36,837 36,579 258 1,285 67 -8 257 38 14 90 566 138 36,941 36,602 339 703 32 132 80 5 18 39 323 163 37,492 37,556 -64 390 13 -119 156 -16 16 -91 87 162 35,565 35,333 232 147 10 31 37 17 10 41 29 143 34,779 34,513 266 106 7 53 22 20 10 56 28 137 35,245 35,008 237 110 6 3 26 -26 14 -35 38 111 35,443 35,217 226 1,503 44 77 34 -9 189 -27 710 127 35,002 34,940 62 1,194 41 -73 108 4 53 6 663 67 36,256 35,927 329 1,816 46 78 107 -19 101 37 1,093 175 36,055 35,916 139 1,939 52 -12 69 70 4 -12 1,233 35 36,995 36,672 323 1,125 78 54 68 32 105 425 132 36,479 36,335 144 1,097 70 -15 188 -29 30 40 480 148 36,812 36,785 27 1,367 64 -16 465 8 29 -87 495 122 36,769 36,459 310 1,479 63 69 243 27 87 814 127 36,961 36,678 283 1,070 51 141 226 4 -16 450 154 36,293 36,452 -159 648 35 -173 73 -36 26 -50 281 100 36,762 36,545 217 818 31 59 60 23 54 -39 417 174 36,845 36,416 429 662 29 137 72 52 89 333 151 37,588 37,011 577 561 24 -8 83 61 223 218 301 37,312 37,175 137 311 18 55 36 -27 -26 107 135 38,207 38,249 -42 609 12 -130 317 1 69 -89 108 176 38,265 38,079 186 594 12 29 328 1 45 130 111 37,240 37,066 174 142 10 71 -13 -24 33 140 36,974 36,579 395 98 11 133 33 84 12 145 36,029 35,970 59 90 10 -37 6 -20 -5 15 121 35,118 34,960 158 229 11 140 -22 -18 20 198 34,606 34,447 159 180 10 -15 29 39 35 71 110 34,795 34,386 409 70 9 117 4 90 10 198 34,482 34,252 230 60 7 122 15 -20 19 113 34,510 34,490 20 167 6 -96 88 -37 10 36 143 34,819 34,675 144 155 7 54 8 16 44 -12 58 86 35,087 34,808 279 51 7 -30 7 99 8 203 34,663 34,552 111 30 8 62 15 -51 7 85 35,295 35,076 219 22 6 25 -14 36 4 172 35,301 35,158 143 165 6 -17 42 17 25 -41 77 99 35,512 35,304 208 241 6 -17 67 -6 37 6 71 142 : ending Nov. 15, 1972, includes $450 million of for reserve-requirement purposes has been based on s of hi rtiich F.R. Banks are allowed to waive penalties demand deposits of more than $400 million), as describ a the E connection with bank adaptation to Regulation J for July 1972, p. 626. Categories shown here as “Large id “Al v. 9, 1972. Beginning 1973, allowable deficiencies parallel the previous “Reserve city” and “Country” cate; es, resi 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 averages of d >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 closing figures. Effective Apr. 19, 1963, the Board’s Regulation A, w ! 972, designation of banks as reserve city banks ing by F.R. Banks, was revised to assist smaller mem the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Less— 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 actions 2 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— 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 Apr. 2........... 100 14,360 -14,260 87.3 21,992 7,631 6,068 15,924 1,563 3,700 526 3,175 9........... 72 17,178 -17,106 105.7 23,124 5,946 5,304 17,820 641 3,674 552 3,122 16........... 68 4 16,414 -16,350 98.8 22,696 6,282 5,779 16,917 503 3.577 635 2,942 23........... 11 83 14,411 -14,483 88.3 20,699 6,288 5,149 15,550 1,139 2.577 442 2,135 30........... 69 142 9,755 -9,827 60.2 17,254 7,499 5,192 12,062 2,307 2.120 1,363 757 8 in New York City 1975— 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 Apr. 2........... -7 4,635 -4,643 68.5 6,434 1,798 1,472 4,962 327 1,745 304 1,441 9........... 37 5,753 -5,716 84.5 6,612 859 854 5,757 4 1,436 362 1,074 16............ 35 5,060 -5,025 72.9 6,744 1,684 1,361 5,384 324 1,492 308 1,184 23........... 1 3,555 -3,590 52.5 5,473 1,918 1,286 4,187 632 1,243 295 948 30........... -3 1,687 -1,757 26.1 3,932 2,245 1,616 2,317 630 995 393 602 38 outside New York City 1975— 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 Apr. 2........... 108 9,725 -9,617 100.6 15,558 5,833 4,596 10,962 1,237 1,955 221 1,733 9........... 35 11,425 -11,390 120.8 16,512 5,088 4,450 12,062 637 2,237 190 2,047 16........... 33 11,354 -11,326 117.2 15,952 4,598 4,419 11,533 179 2,085 326 1,759 23............ 10 10,856 -10,893 113.9 15,226 4,371 3,864 11,363 507 1,334 147 1,187 30........... 72 8,068 -8,070 84.2 13,322 5,254 3,577 9,745 1,677 1,126 970 155 5 in City of Chicago 1975— Mar. 5........... 11 3,877 -3,866 217.5 4,712 835 835 3,877 280 280 12............ 33 4,541 -4,507 257.7 5,303 763 763 4,541 396 396 19........... -24 4.065 -4,089 227.5 4,698 633 633 4.065 519 519 26........... 10 43 3,800 -3,832 218.5 4,502 702 702 3,800 354 354 Apr. 2........... 41 3,587 -3,546 202.6 4,514 926 923 3,591 440 440 9........... 29 4,334 -4,305 250.2 5,094 760 760 4,334 444 444 16........... -4 4,026 -4,030 222.5 4,930 904 904 4,026 318 318 23........... 14 4.065 -4,051 231.8 4,981 916 916 4.065 313 313 30........... 11 36 3,532 -3,557 204.1 4,499 968 967 3,532 291 291 33 others 1975— 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 Apr. 2........... 67 6,138 -6,071 77.7 11,045 4,907 3,673 7,371 1,233 1,514 221 1,293 9........... 6 7,090 -7,084 91.9 11,418 4,327 3,689 7,728 637 1,794 190 1,604 16........... 37 7,328 -7,296 92.9 11,022 3,515 3,515 7,507 179 1,767 326 1,440 23........... 4 6,791 -6,842 87.5 10,245 3,454 2,947 7,298 507 1,021 147 874 30........... 62 4,536 -4,513 57.6 8,823 4,287 2,609 6,213 1,677 835 970 -136 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 □ MAY 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 rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 4/30/75 date rate 4/30/75 date rate 4/30/75 date 3 rate 4/30/75 date rate Boston..................... 614 3/10/75 634 634 3/10/75 714 8 3/10/75 8*4 9 3/10/75 9*4 New York............... 614 3/10/75 634 634 3/10/75 714 8 3/10/75 8V4 9 3/10/75 9*4 Philadelphia........... 614 3/10/75 634 634 3/10/75 714 8 3/10/75 81/2 9 3/10/75 9*4 Cleveland................ 614 3/10/75 634 634 3/10/75 71/4 8 3/10/75 8*4 9 3/10/75 9*4 Richmond............... 614 3/10/75 634 634 3/10/75 71/4 8 3/10/75 8*4 9 3/10/75 9*4 Atlanta.................... 614 3/10/75 634 634 3/10/75 71/4 8 3/10/75 81/2 9 3/10/75 9*4 Chicago................... 614 3/10/75 634 634 3/10/75 714 8 3/14/75 8*4 9 3/14/75 9*4 St. Louis................. 614 3/14/75 634 634 3/14/75 714 8 3/14/75 8*4 9 3/14/75 9*4 Minneapolis........... 614 3/10/75 634 634 3/10/75 714 8 3/10/75 8*4 9 3/10/75 9*4 Kansas City........... 614 3/10/75 634 634 3/10/75 71/4 8 3/10/75 8*4 9 3/10/75 9*4 Dallas...................... 614 3/14/75 634 634 3/14/75 714 8 3/14/75 8*4 9 3/14/75 9*4 San Francisco........ 614 3/10/75 634 634 3/10/75 714 8 3/10/75 8*4 9 3/10/75 9*4 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. Jn effect Dec. 31, 1955 21/z 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11..................... 434-5 5 30. 4 4 19..................... 434 434 1956—Apr. 13............. 2*4-3 234 Dec. 13..................... 4V4-434 20............. 23/4-3 23/4 1965—Dec. 6. 4 -4 Vi 4Vi 1 7 4V4-434 44 Aug. 24............. 2*4-3 3 13. 41/2 4 Vi 24..................... 41/4 4% 31............. 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15..................... 5 5 1957— N A o u v g. . 2 1 9 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 - - V 3 3 1 i * / 4 2 3 3 3 Vi Nov. 2 2 1 0 7 4 . . . 4 4 41 - / 4 2 1/2 4 4 41 V /2 i M A Fe p a b r r . . . 2 2 2 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 V 5 4 - * - 5 4 5 V 3 4 4 5 5 5 1 V V /4 i i Dec. 2............. 3 3 1968—Mar. 2 1 2 5. . 41/ 5 2-5 4 5 1/2 May 1 4 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 5 4 3 - 4 6 6 5 34 1958—J M A M a p n a a r r . y . . 2 2 2 1 1 7 9 2 1 8 4 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 1 V 3 * V ^ / 2 4 I 4 4 4 - V V - - - - 3 2 2 3 3 4 4 V 1/ 4 4 2 2 2 2 3 m 1 3 1 1 % % , / / 4 4 4 A A D p u ec r g . . . 2 2 3 1 1 1 6 0 6 8 9 0 . . . . . . 5 5 5 1 * 4 5 5 5 4 1 1 - - V / / 5 - 2 4 5 5 i 1 V % /2 i 5 5 5 5 5 5 1 1 1 V V % / / / 4 2 2 i i J J A u u u n l g y e . 1 1 1 1 2 2 1 4 . 5 8 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 6 6 7 7 1 1 - - 7 6 / / 4 4 1 1 / / 4 4 6 7 6 7 6 7 1 V % V / 4 4 4 Aug. 15............. 1 34-2 1% 1969—Apr. 4. 5i/i-6 6 1974—Apr. 25..................... 7V4-8 Sept. 12............. l%-2 2 8. 6 6 30.................... 8 8 23............. 2 2 Dec. 9..................... 734-8 734 Oct. 24............. 2 -2i/i 2 1970—Nov. 11. 534-6 6 1 6 734 734 Nov. 7............ 2% 21/4 13. 534-6 534 16. 534 53/4 1975—Jan. 6..................... 71/4-73/4 73/4 1959—Mar. 6........... 21/2-3 3 Dec. 1, 51/2-53/4 53/4 10..................... 714-734 714 16........... 3 3 4. 51/2-53/4 51/2 2 4 71/4 71/4 May 29........... 3 -3% 3 Vi 11. 5Vi 5*4 Feb. 5..................... 634-714 634 J S u e n p e t. 1 1 2 1 . . . . . . . . . . . . . . . .. .. .. .. 3* 3 4 % -4 4 3 Vi 1971—Jan. 8, 51/4-51/2 51/4 Mar. 1 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6*4 6 - 3 6 4 34 f i 18........... 4 4 15. 51/4 51/4 14..................... 61/4 61/4 1960—J A S u e u p n g t e . . 1 1 1 9 3 0 2 . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 V V 3 3 i i - - V - 3 4 4 i % 4 3 3 3 1 * /2 J F u e l b y . 2 2 1 1 1 1 9 9 6 9 3 2 , , , 5 4 5 4 3 3 / 5 4 4 4 - 3 - - 5 - 5 4 5 511/44 5 5 5 5 5 4 1 3 / 4 4 In effect, Apr. 30, 1975___ 61/4 61/4 1963—July 17........... 3 -31/2 31/2 23 5 5 26........... 3 *4 3% 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

MAY 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 i Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963........... 16% 12 4 1966—juiy 14,21 4 4 5 Sept. 8,15. ... 6 1967—Mar. 2............. 3% 3% Mar. 16........... 3 3 1968—Jan. 11,18.... 16% 17 12 12% 1969—Apr. 17........... 17 17% 12% 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_4(X) Over Savings Over 5 5, maturing in— 400 0-5 30-179 180 days days and over 1972—Nov. 9............. 8 10 12 « 16% 17% 7 3 7 3 7 5 Nov. 16........... 13 1973—juiy 19............. 10% 12% 13% 18 1974 Dec. 12........... 17% 6 3 1975—Feb. 13........... 7% 10 12 13 16% In effect Apr. 30,1975 7% 10 12 13 16% 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. See “Announcements” in Apr. 1975 Bulletin, 6 The 16 Vi per cent requirement applied for one week, only to former p. 260, concerning reduction in requirements to be effective May 22, 1975. reserve city banks. For other banks, the 13 per cent requirement was 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation continued in this deposit interval. club accounts became subject to same requirements as savings deposits. 7 See columns above for earliest effective date of this rate. For other notes see 2(b) and 2(c) above. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ Note.—Required reserves must be held in the form of deposits with serve cities, and on the same date requirements for reserves against net F.R. Banks or vault cash. demand deposits of member banks were restructured to provide that each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS o MAY 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% Less than $100,000: 90 days to 1 year. 5 30-89 days............................ 5 5 5 2 1 - y 2 e a y rs e a o r r s . m ..... o .. r .. e ... . . . 5 s 5 y % 4 9 l 0 - 2 d i a /i y y s e t a o r s 1 . .. y .. e ... a .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5% 6 5 % I* 5 6 1/2 Single-maturity: 2 Vi years or more.............. 61/2 6% 6% 61/2 Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000: 2 1 - y 2 e a y rs e a o r r s . m .... o ... r .. e .. . .. . 5% 5 5V V 4 i 4 6 - y 6 e a y r e s a r o s r . .. m .... o .. r .. e ... . . .. .. . . .. . . .. . . . . . . . . . . . . . (4) 714 m 7 71 1 / /2 4 $100,000 or more: Governmental units........... (5) (5) 71/2 IVa 30-59 days............ 51/2 (3) $100,000 or more.................. (3) (3) (3) (3) 60-89 days............ 5V4 (3) 90-179 days.......... 51/z 5V2 6 (3) 1 1 8 y 0 e a d r a y o s r t m o o 1 r y e- e - a -- r - I61/4 ( ( 3 3) ) 1 For exceptions with respect to certain foreign time deposits, see amount were subject to the 6Vi per cent ceiling that applies to time de­ Bulletin for Feb. 1968, p. 167. posits maturing in 2Vi years or more. 2 Multiple-maturity time deposits include deposits that are automati­ Effective Nov. 1, 1973, a ceiling rate of iy4 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, 6 3 0 0 - -5 8 9 9 d d a a y y s s 6 6 % Vi p pe er r c c e e n n t t June 24, 1970 g re o c v e e iv rn 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 e r t e i m p e e r d m ep it o te s d it s to w i h th 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 e a r n $ d 1 0 c 0 o ,0 u 0 ld 0 90-179 days 6y4 per cent 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 7i/i 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) 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. 75 75 1949—Mar. 30 1951—Jan. 16..................... 50 50 1951—Jan. 17 1953—Feb. 75 75 1953—Feb. 20 1955—Jan. 3..................... 50 50 1955—Jan. 4 Apr. 60 60 Apr. 23 1958—Jan. 15..................... 70 70 1958—Jan. 16 Aug. 50 50 Aug. 5 Oct. 15..................... 70 70 Oct. 16 1960—July 27..................... 90 90 1960—July 28 1962—July 9..................... 70 70 1962—July 10 1963—Nov. 5..................... 50 50 1963—Nov. 6 1968—Mar. 70 70 1968—Mar. 11 June 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971— Dec. 6 1972—Nov. 22................... 55 50 55 1972—Nov. 24 1 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

MAY 1975 o 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 197 0 11,074 5,214 2,160 99 — 3*483 848 5,430 249 -1,845 93 -102 197 1 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 197 2 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 197 3 15,517 4,1 3,405 1,396 -140 579 -2,028 500 895 129 87 197 4 11,660 5,830 4,550 450 -1,314 797 -697 434 1,675 196 205 1974—Mar.. 664 566 165 109 56 25 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 -i30 Sept.. 717 565 786 22 -200 65 200 53 37 Oct... 547 1,110 1,063 Nov.. 1.422 273 107 148 -1,623 92 1,757 78 -465 25 *200 Dec.. 973 426 6 85 126 123 -126 53 20 1975—Jan... 341 945 600 14 305 61 26 Feb.. 357 460 900 2,437 129 -2,836 113 249 74 150 Mar.. 760 156 487 1 ,579 -1,494 361 194 450 212 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 change3 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 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 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—Mar.. 854 566 165 702 702 6,248 5,124 1,246 170 48 185 223 1,780 Apr.. 1,409 49 407 8,069 8,498 524 360 48 33 —89 789 May. 944 100 4.586 4,586 9,192 8,648 1,388 201 15 424 16 142 2,155 June. 790 954 204 4,580 4,580 6,124 6,667 -911 309 72 -372 -70 -1,115 July., 1,113 211 2.587 4,269 4,965 -2,381 761 35 -270 121 -207 -2,011 Aug.., 1,652 850 9,061 *'i i ,287 2,096 2,096 3,028 238 3 59 3,322 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 Mar. 3.362 156 1,788 15,933 16,763 5,011 6,928 332 210 -347 -5 -323 -136 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—Feb.................................... 32 * 20 * 10 1 Mar................................... 6 * 5 * * 1 Apr.................................... 6 * 5 * * 1 May.................................. 63 * 5 * 57 1 June.................................. 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 1975—Jan..................................... 2 * * * 1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS □ MAY 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Apr. 30 Apr. 23 Apr. 16 Apr. 9 Apr. 2 Apr. 30 Mar. 31 Apr. 30 Gold certificate account.................................... 11,620 11,620 11,620 11,620 11,621 11,620 11,620 11,460 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash........................................................... 347 341 344 332 342 347 352 234 Loans: Member bank borrowings............... 1,538 1,068 48 14 42 1,538 60 1,747 Other..................................................... Acceptances: Bought outright.................................. 689 650 643 649 677 689 665 81 Held under repurchase agreements. 496 116 236 1 496 135 Federal agency obligations: Bought outright................................... 5,18 5,189 5,189 5,189 5,189 5,189 5,190 2,436 Held under repurchase agreements. 882 288 410 882 218 U.S. Govt, securities: Bought outright: Bills.............................. 37,222 35,918 34,395 33,290 35,838 37,222 36,087 37,181 Certificates—Special. Other.. Notes........................... 42,488 42,067 41,583 41,583 41,583 42,488 41,583 39,128 Bonds.......................... 3,913 3,803 3,748 3,748 3,748 3,913 3,748 3,004 Total bought outright....................... 183,623 181,788 179,726 178,621 181,169 183,623 181,418 179,313 Held under repurchase agreements. 4,223 1,122 2,416 4,223 694 Total U.S. Govt, securities. 87,846 82,910 82,142 78,621 81,169 87,846 81,418 80,007 Total loans and securities..................... 96,640 90,221 88,668 84,474 87,077 96,640 87,333 84,624 Cash items in process of collection... *7,209 *8,286 9,192 7,890 7,649 *7,209 5,588 8,502 Bank premises......................................... 277 278 278 276 276 277 275 231 Operating equipment.............................. 2 2 2 2 2 2 2 Other assets: Denominated in foreign currencies. 2 22 2 12 2 2 19 6 All other............................................... 3,016 2,958 2,864 2,844 2,787 3,016 2,776 1,076 Total assets. *119,513 *114,128 113,370 107,850 110,156 *119,513 108,365 106,533 Liabilities F.R. notes............................................... 69,561 69,610 69,989 69,581 69,561 69,270 63,816 Deposits: Member bank reserves.................... *32,202 *28,746 31,396 28,614 28,642 *32,202 27,139 28,795 U.S. Treasury—General account. 8,363 6,191 1,638 467 2,430 8,363 4,269 2,813 Foreign............................................... 270 249 296 267 429 270 402 517 Other: All other2...................................... 573 640 615 595 795 573 709 697 Total deposits. *>41,408 *35,826 33,945 29,943 32,296 *41,408 32,519 32,822 Deferred availability cash items............. 5,092 5,431 6,270 4,855 5,371 5,092 3,456 6,766 Other liabilities and accrued dividends. 1,192 1,112 1,121 1,086 1,070 1,192 1,012 1,087 Total liabilities............................................ *117,253 *111,979 111,325 105,906 108,318 *117,253 106,257 104,491 Capital accounts Capital paid in..................................................................... 906 907 906 903 903 906 903 874 Surplus................................................................................... 897 897 897 897 897 897 897 844 Other capital accounts....................................................... 457 345 242 144 38 457 308 324 Total liabilities and capital accounts.............................. *119,513 *114,128 113,370 107,850 110,156 *119,513 108,365 106,533 Contingent liability on acceptances purchased for foreign correspondents................................................... 2 6 20 24 34 2 37 700 Marketable U.S. Govt, securities held in custody for foreign and international accounts.............................. 38,174 38,894 40,137 38,698 37,824 38,174 ••37,974 27,349 Federal Reserve Notes—Federal Reserve Agents* Accounts 74,871 74,913 74,916 74,687 74,548 74,871 74,473 68,018 Collateral held against notes outstanding: Gold certificate account.................................................. 2,587 3,337 3,337 3,492 3,809 2,587 3,809 2,150 Special Drawing Rights certificate account............... 138 138 138 138 138 138 138 73,930 73,080 72,955 72,830 72,477 73,930 72,277 67,195 76,655 76,555 76,430 76,460 76,424 76,655 76,224 69,345 1 See note 2 on p. A-2. 2 See note 6 on p. A-2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 a 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 Apr. 30 Apr. 23 Apr. 16 Apr. 9 Apr. 2 Apr. 30 Mar. 31 Apr. 30 1,538 1,068 46 14 41 1 ,538 59 1,747 1,536 1,068 46 7 35 1 ,536 58 1,709 16—90 days.......................................................................... 2 7 6 2 1 38 91 days to 1 year.............................................................. Acceptances—Total............................................................. 1,185 766 879 650 677 1 ,185 665 216 594 227 363 94 103 594 111 150 366 359 355 399 414 366 139 63 225 180 161 157 160 225 415 3 87,846 82,910 82,142 78,621 81,169 87,846 81,418 80,007 13,679 5,962 5,357 2,636 5,050 13,679 3,771 5,327 17,837 21,199 21,502 20,950 21,379 17,837 22,146 19,917 21,009 20,919 20,884 20,636 20,341 21,009 21,102 22,589 21,772 21,496 21,288 21 ,288 21,288 21 ,772 21,288 22,516 10,759 10,653 10,485 10,485 10,485 10,759 10,485 7,836 2,790 2,681 2,626 2,626 2,626 2,790 2,626 1,822 Federal agency obligations—Total.................................. 6,071 5,477 5,599 5,189 5,189 6,071 5,190 2,654 Within 15 days1............................................................... 926 331 455 2 926 6 218 192 192 191 234 236 192 189 119 91 days to 1 year.............................................................. 616 617 603 603 603 616 643 260 1-5 years............................................................................ 2,567 2,567 2,580 2,580 2,580 2,567 2,580 978 5-10 years.......................................................................... 1 ,209 1,209 1,209 1,209 1 ,209 1,209 1 ,211 723 Over 10 years.................................................................... 561 561 561 561 561 561 561 356 i 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—Mar................................. r20,165.1 8,914.4 4,718.0 rl 1,250.7 ''6,532.8 118.3 292.5 120.8 80.3 64.7 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................................. *•21,481.7 9,240.8 5,173.0 '12,241.0 ’'7,068.0 123.4 286.4 132.0 86.3 r68.9 Sept................................. 22,017.5 9,970.8 5,092.1 12,046.7 6,954.7 125.1 310.5 127.5 r83.8 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................................... '21,856.3 10,157.8 4,868.4 rll ,698.4 r6,830.1 127.2 321.8 125.9 83.4 67.3 Feb.......................... r22,952.7 10,918.0 >•4,992.8 r12,034.7 r7,041.9 133.3 343.2 127.4 85.8 69.6 Mar................................. 22,121.4 10,241.1 4,848.2 11,880.2 7,032.0 124.6 318.3 116.9 81.7 67.7 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s include 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 a MAY 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period , Mi Mo Ma Mt Ms Mi m2 Mi Mi Mi Composition of measures is described in the Note below. 1972—Dec. 255.8 525.7 844.9 569.7 263.0 530.7 848.0 574.9 892.2 1973—Dec. 271.5 572.2 919.6 636.0 983.4 279.1 577.3 922.8 641.3 986.8 1974—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 '616.2 r987.7 708.9 1080.4 289.3 r622.1 "993.1 714.0 1085.0 Feb. 283.8 r621.1 r996.3 713.2 1088.4 280.8 *■618.7 '994.1 707.9 r1083.3 Mar. 286.8 627.4 1007.8 717.2 1097.6 284.0 626.9 1008.7 715.0 1096.8 Note.—Composition of the money stock measures is as follows: M*: Mi 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 M4: M2 plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in M5: Mz plus large negotiable CD’s. process of collection and F.R. float; (2) foreign demand balances at F.R. For a description of the latest revisions in Mt, M2, and Ma, see “Revi­ Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of sion of Money Stock Measures and Member Bank Reserves and Deposits” commercial banks. on pp. 817-27 of the Dec. 1974 Bulletin. : Averages of daily figures for Mi plus savings deposits, time de­ Latest monthly and weekly figures are available from the Board’s H.6 posits open account, and time certificates other than negotiable CD’s of release. Back data are available from the Banking Section, Division of $100,000 of large weekly reporting banks. Research and Statistics. 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 mes­ tions2 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 1974—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................. 67.8 216.6 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 r92.7 r334.0 426.7 371.5 67.7 221.6 158.7 59.7 '91.9 '332.8 424.7 371.0 4.0 Feb................. 68.6 215.1 r92.1 r337.3 429.4 375.2 67.8 213.0 152.2 57.6 '89.2 '337.9 427.1 '375.4 3.3 Mar................ 69.4 217.5 89.8 340.5 430.3 380.4 68.8 215.3 153.9 58.2 88.1 342.9 430.9 381.8 3.8 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

MAY 1975 o 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 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—Mar.... 34.98 '33.67 r34.85 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 '467.1 302.3 159.1 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 '4.2 489.2 488.2 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 '33.60 489.2 328.9 159.7 .6 487.0 326.5 158.0 2.4 '495.7 '493.5 Mar___ 34.85 34.74 34.65 33.03 491.6 329.2 161.7 .7 491.6 328.9 159.8 2.8 498.1 498.1 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 industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments 1 Total i loans Plus Treas­ Other4 ments 1 Total1 loans Plus Treas­ Other4 sold 2 Total loans ury sold2 Total loans ury 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 56.4 134.7 673.4 481.4 487.1 172.9 176.0 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........ 687.5 494.8 500.2 178.0 180.9 55.9 136.8 686.3 497.2 502.6 178.4 181.3 52.2 136.9 Aug. 28........ 693.9 501.5 506.8 181.0 183.9 55.3 137.1 689.4 500.6 505.9 179.4 182.3 52.0 136.8 Sept. 25........ 689.9 500.2 505.5 181.4 184.2 52.3 137.4 689.5 501.2 506.5 181.5 184.3 50.7 137.6 Oct. 30 .... 690.8 502.0 507.2 183.2 186.0 49.8 139.0 689.5 500.7 505.9 182.0 184.8 50.7 138.1 Nov. 276.... 692.5 503.8 508.7 184.3 187.0 49.1 139.6 692.2 502.0 506.9 183.2 185.9 52.1 138.1 Dec. 31 ... 687.0 498.2 503.0 182.6 185.3 48.7 140.1 705.5 510.6 515.4 186.8 189.5 54.4 140.5 1975—Jan. 29*\... 689.3 500.7 505.3 183.9 186.6 48.8 139.8 688.3 495.9 500.5 181.7 184.4 53.6 138.9 Feb. 26?.... 691.0 497.6 502.1 182.1 184.8 53.3 140.1 685.3 491.5 496.0 180.3 183.0 54.7 139.1 Mar. 263\... 694.7 496.4 501.1 180.4 183.2 58.7 139.6 690.2 490.3 495.0 180.0 182.8 59.6 140.3 Apr. 30*\... 696.1 492.4 497.0 179.8 182.5 64.4 139.3 695.2 490.5 495.1 180.4 184.1 63.7 140.9 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 there were increases 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 COMMERCIAL BANKS o MAY 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 assets3 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 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21, 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 31 7. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31.. 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133.379 71,641 163 20,986 13,472 1970—Dec. 31.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31.. 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31.. 598 ,r 414,696 67,028 117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31.. 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Apr. 24.. 699,290 508,140 56.410 740102,360 838.740 669,730 31,450 7,290 5,900 236,170 388.920 67.580 59,950 14,261 May 29.. 703,820 514,280 54,080 460115,575 857,695 683,175 34,870 8,200 5,940 238,215 395,950 69,910 60,330 14,290 June 30.. 718,713 528,951 52,114 648126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 14,337 July 31.. 720,730 531,580 52,230 920107,850 872,560 695,230 33,580 9,680 4,360 243,870 403,740 68,030 61.530 14,367 Aug. 28.. 722,110 533,320 52,010 780100,610 865.740 688,490 30,530 9,970 4,070 235,780 408,140 67,230 61.530 14,383 Sept. 25.. 721,160 532,890 50,690 580107,390 873,710 692,830 29,76010,610 7,380 236,550 408,530 67.920 61,850 14,398 Oct. 30.. 723,330 534,520 50,730 080110,770 880,750 700,420 33,15010,180 3,080 243,090 410.920 68,350 62,180 14,422 Nov. 27.. 729,640 539,400 52,140 100116,220 894,530 708,150 34,23010,310 3,910 248.730 410,970 71,470 62,210 14,440 Dec. 31.. 743,998 549,101 54.411 486128,015 919,381 747,727 43,483 11,496 4,807 267,463 420,478 58,373 63,654 14,465 1975—Jan. 29*. 724,080 531.630 53,560138,890101,400 873,940 701,390 29,90011,740 4,530 233.730 421,490 61,320 64,010 14,475 Feb. 26*. 724,010 530,160 54.720 139,130103,470 877,120 701,120 29,77010,440 2,640 234.380 423,890 63.920 64,460 14,497 Mar. 26*. 729,500 529,590 59,620140,290105,230 886,450 710,440 30,16011,680 3,970 236,540 428,090 62,830 65,100 14.523 Apr. 30*. 728,270 523.630 63.720140,920113,290 895,230 720,370 32,79011,880 7,930 242,130 425,640 60.580 64,940 14.523 Members of F.R. System: 1941_Dec. 31 .. 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,£ 6,619 1947—Dec. 31.. 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 I960—Dec. 31.. 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 31.. 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 1971—Dec. 31.. 405.087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31.. 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—Dec. 31.. 528,124 391,032 41,494 95,598 100,098 655,r- 526.837 34,782 5,843 8,273 202,564 275,374 55,611 44.741 5,735 1974—Apr. 24.. 535,917 399,092 39,273 87,005 653,285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 5.763 May 29.. 538,801 403,619 37,282 99,155 669,357 524.837 32,452 7,274 4,746 182,060 298.305 64,820 46,090 5.763 June 30.. 550,388 415,061 35,934 108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 5,761 July 31r. 552,643 418,088 35,858 91.430 680,511 533,807 31,153 8,598 3,180 186,360 304.516 63,042 46,907 5.766 Aug. 28 r. 552,845 418,727 35,878 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,816 5.766 Sept. 25 r., 550,843 417,631 34,683 91,002 679,160 531,194 27,831 9,522 5,782 180,114 307,945 62,166 47,054 5.774 Oct. 30r 548,622 415,941 34,813 93,674 680,173 535,128 31,043 9,089 2,117 184,573 308.306 60,803 47,131 5.775 Nov. 27.. 556.088 421,428 36,394 98,603 694,743 542,515 32,422 9,222 2,859 189,688 308,324 65,411 47,320 5,774 Dec. 31.. 568,577 429,557 38,924 107,008 715,675 575,612 41,06210,052 3,183 204,232 317,083 52,856 48,244 5,780 1975—Jan. 29.. 550,264 414,426 37,549 98,289 86,321 676.905 536,256 28,311 10,299 3,247 177,701 316,698 56,136 48,411 5,783 Feb. 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,f ‘ 48.741 5.785 Mar. 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 5.785 Apr. 30*. 550,722 406,634 45,137 98,951 96,678 692,063 549,780 31,10210,433 6,191 184,671 317,383 55,697 49,265 5.785 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 io I54 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 64,691 104,020 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 57,961 129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—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 Dec. 31... 734,406 541,029 54,093139,285125,348 906,154 741,489 42,58610,692 4,799 265,401 418,011 55,992 63,043 ’■14,216 I National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 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 73,703j 516,632 407,915 20,086 4,912 5,038 145,954 231,925 48,123 34,966 4,693 Dec. 31... 428,479 321,486 29,078 77,915 76,535| 534,267 431,088 23,497 6,750 2,437 154,425 243,978 39,608 35,820 r4,706 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 assets 3 bilities row­ ac­ of insurance Total Loans U.S. and Total3 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 Dec. 31.... 140,373 108,346 9,846 22,181 30,473 181,683 144,799 17,565 3,301 746 49,807 73,380 13,247 12,425 rl ,074 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 Dec. 31.... 165,555 111,197 15,168 39,189 18,340 190,204 165,602 1 ,524 640 1 ,616 61,169 100,653 3,136 14,799 ''8,436 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 $29 1,:291 253 13 329 852 1947—Dec. 317... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 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 Dec. 31.... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 8 2,062 2,857 2,382 611 r249 Total nonmember: 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 t157 5,1>04 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31.... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31.... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16,562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—June 30.... 168,456 114,020 16,180 38,256 17,516 192,227 163,016 2,804 1,086 1,743 58,789 98,593 4,711 14,677 8,576 Dec. 31.... 175,536 119,658 15,487 40,390 21,007 203,820 172,229 2,421 1,443 1,624 63,231 103,510 5,518 15,410 r8,685 1 Loans to farmers directly guaranteed by CCC were reclassified as and for individual categories of securities on a gross basis—that is, before securities and Export-import Bank portfolio fund participations were deduction of valuation reserves—rather than het as previously reported. reclassified from loans to securities effective June 30, 1966. This reduced ‘Total loans” and increased “Other securities” by about $1 billion. Note.—Data are for all commercial banks in the United States (includ­ “Total loans” include Federal funds sold, and beginning with June 1967 ing Alaska and Hawaii, beginning with 1959). Commercial banks represent securities purchased under resale agreements, figures for which are in­ all commercial banks, both member and nonmember; stock savings cluded in “Federal funds sold, etc.,” on p. A-16. banks; and nondeposit trust companies. Effective June 30, 1971, Farmers Home Administration notes were Figures for member banks before 1970 include mutual savings banks classified as “Other securities” rather than “Loans.” As a result of this as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks change, approximately $300 million was transferred to “Other securities” are not included in insured commercial banks. for the period ending June 30, 1971, for all commercial banks. Effective June 30, 1959, commercial banks and member banks exclude See also table (and notes) at the bottom of p. A-24. a small national bank in the Virgin Islands; also, member banks exclude, 2 See first 2 paragraphs of note 1. and noninsured commercial banks include, through June 30, 1970, a small 3 Reciprocal balances excluded beginning with 1942. member bank engaged exclusively in trust business; beginning 1973, 4 Includes items not shown separately. See also note 1. excludes 1 national bank in Puerto Rico. 5 See third paragraph of note 1 above. Beginning Dec. 31, 1973, June 30, 1974, and Dec. 31, 1974, respectively, 6 For the last-Wednesday-of-the-month series, figures for call dates member banks exclude and noninsured nonmember banks include 1, 2, are shown for June and December as soon as they became available. and 3 noninsured trust companies that are members of the Federal Re­ 7 Beginning with Dec. 31, 1947, the series was revised; for description, serve 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. owned domestic subsidiaries) and (2) reporting of figures for total loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS □ MAY 1975 ASSETS BY CLASS OF BANK, DECEMBER 31, 1974 (Amounts in millions of dollars) Member banks1 All 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................................ 128,015 125,348 107,008 27,604 4,816 40,126 34,462 21,007 Currency and coin............................................................... 11,654 11,629 8,846 691 198 2,889 5,068 2,808 Reserves with F.R. banks................................................. 27,112 27,112 27 112 4 960 1 783 10 356 10 013 Demand balances with banks in United States......... 36,077 34,321 21,695 7*265 ’357 4,382 9*692 14,382 Other balances with banks in United States.............. 4,173 3,872 2,602 62 275 853 1,413 1 571 Balances with banks in foreign countries.................... 1,722 1 ,302 1,165 412 89 532 132 557 Cash items in process of collection............................... 47,277 47,112 45,588 14,214 2,115 21,115 8,144 1,689 Total securities held—Book value...................................... 194,897 193,378 139,020 16,412 5,612 47,254 69,741 55,877 U.S. Treasury........................................................................ 54,411 54,093 38,924 5,332 1,820 13,323 18,448 15,487 Other U.S. Govt, agencies................................................. 32,835 32,373 20,859 2,005 874 6,450 11,529 11,976 States and political subdivisions..................................... 100,397 100,031 74,283 8,288 2,706 25,761 37,528 26,114 All other securities............................................................... 7,255 6,881 4,954 787 212 1,719 2,236 2,300 Trade-account securities.................................................... 7,989 7,984 7,916 3.040 831 3,805 240 74 U.S. Treasury.................................................................... 2,548 2,543 2,521 970 461 1,037 53 27 Other U.S. Govt, agencies............................................ 1 ,352 1,352 1,347 541 120 637 49 4 States and political subdivisions................................. 3,370 3,370 3,337 1 ,341 250 1,612 135 34 All other.............................................................................. 719 719 710 188 519 3 9 Bank investment portfolios............................................... 186,907 185,394 131 ,105 13,372 4,781 43,449 69,502 55,803 U.S. Treasury.................................................................... 51,863 51,550 36,403 4,362 1,360 12,286 18,396 15,460 Other U.S. Govt, agencies............................................ 31,483 31,021 19,511 1 ,464 753 5,813 11,480 11,972 States and political subdivisions................................. 97,026 96,661 70,946 6,947 2,456 24,150 37,393 26,080 All other.............................................................................. 6,536 6,162 4,244 599 212 1,200 2,233 2,291 Federal funds sold and securities resale agreements... 40,035 38,873 29,841 1,887 985 14,741 12,228 10,194 Commercial banks............................................................... 33,800 32,638 23,715 1 ,052 698 10,628 11,338 10,084 Brokers and dealers............................................................ 4,386 4,386 4,330 615 253 2,815 647 56 Others....................................................................................... 1,849 1,849 1,795 220 35 1,298 243 54 Other loans................................................................................. 509,455 502,156 399,990 82,049 24,261 149,804 143,876 109,465 Real estate loans................................................................... 130,587 130,304 94,584 8,184 1,325 35,945 49,131 36,003 Secured by farmland...................................................... 5,904 5,887 2.634 14 2 345 2,274 3,270 Secured by residential.................................................... 81,605 81,402 60,577 4,567 887 24,133 30,991 21,027 1- to 4-family residences........................................... 74,033 73,857 54,316 3,135 827 21,198 29,155 19,717 FHA insured............................................................ 5,914 5,870 5,110 254 40 2,815 2,000 805 VA guaranteed......................................................... 3,187 3,143 2,703 188 20 1,401 1,094 485 Other........................................................................... 64,931 64,844 46,503 2,693 766 16,982 26,061 18,428 7,572 7,545 6,262 1,432 59 2,934 1,836 1,310 FHA insured............................................................. 941 925 823 166 27 355 275 118 Other........................................................................... 6,631 6,620 5,439 1,266 32 2,579 1,561 1 ,192 Secured by other properties......................................... 43,078 43,015 31,372 3,602 437 11,467 15,866 11,706 Loans to domestic and foreign banks........................... 12,265 10,017 9,500 4,731 679 3,628 462 2,765 Loans to other financial institutions............................. 35,234 35,011 33,627 12,911 5,009 13,047 2,661 1,607 Loans on securities to brokers and dealers................ 5 ,241 5,193 5,073 3,597 550 763 161 169 Other loans for purch./carry securities......................... 4,026 4,001 3,343 566 329 1,527 921 683 Loans to farmers.................................................................. 18,237 18,216 10,501 120 252 2,457 7,672 7,735 Commercial and industrial loans.................................... 186,767 182,743 156,354 43,095 13,408 60,473 39,378 30,413 103,196 102,937 74,465 5,213 1,558 26,751 40,943 28,731 80,227 80,018 57,443 3,177 835 20,819 32,611 22,784 Passenger automobilies............................................. 32,848 32,764 22,127 462 161 6,954 14,551 10,721 Residential-repair/modernize.................................. 5,546 5,536 4,075 206 39 1,734 2,096 1,472 Credit cards and related plans................................ 11,078 11,077 9,807 1,113 388 5,479 2,828 1,271 Charge-account credit cards................................ 8,281 8,280 7,430 665 358 4,273 2,134 851 Check and revolving credit plans...................... 2,797 2,797 2,377 447 30 1 ,206 694 420 Other retail consumer goods................................... 15,368 15,345 10,831 155 118 3,799 6,758 4,537 Mobile homes........................................................... 8,998 8,996 6,520 97 54 2,353 4,017 2,477 Other........................................................................... 6,371 6,349 4,311 59 64 1,447 2,741 2,060 Other instalment loans............................................... 15,386 15,295 10,602 1 ,242 129 2,853 6,379 4,784 Single-payment loans to individuals......................... 22,969 22,919 17,022 2,036 723 5,932 8,332 5,947 All other loans...................................................................... 13,903 13,735 12,544 3,631 1,152 5,214 2,546 1,359 Total loans and securities...................................................... 744,387 734,406 568,852 100,348 30,859 211,799 225,845 175,536 Fixed assets—Buildings, furniture, real estate................ 15,097 15,019 11.374 1,116 448 4,622 5,189 3,723 1,763 1,739 1 ,723 768 134 752 69 41 Customer acceptances outstanding.................................... 10,857 10,648 10,364 5,629 451 3,912 372 492 Other assets................................................................................ 19,650 18,994 16,629 5,104 872 7,132 3,520 3,022 Total assets................................................................................. 919,770 906,154 715,950 140,569 37,581 268,343 269,457 203,820 Number of banks..................................................................... 14,465 14,216 5,780 13 9 155 5,603 8,685 1 Member banks exclude and nonmember banks include 3 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

MAY 1975 o COMMERCIAL BANKS A 17 LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 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............................................................ 315,752 312,785 248,477 55,556 11,307 88,451 93,163 67,276 Mutual savings banks................................................. 1,363 1,197 1,121 559 3 190 370 242 Other individuals, partnerships, and corporations.. 235,774 234,779 180,819 30,816 7,538 67,111 75,354 54,954 U.S. Government........................................................ 4,807 4,799 3,183 226 36 815 2,106 1,624 States and political subdivisions................................ 18,611 18,481 13,126 666 218 3,889 8,354 5,485 Foreign governments, central banks, etc................... 2,124 1,882 1,855 1,465 24 357 8 269 Commercial banks in United States......................... 35,316 35,053 33,824 14,399 3,039 11,985 4,401 1,492 Banks in foreign countries......................................... 6,804 6,336 6,116 4,593 198 1,192 134 688 Certified and officers* checks, etc............................... 10,954 10,258 8,432 2,833 251 2,912 2,436 2,522 Time and savings deposits.............................................. 432,364 428,703 327,410 51,799 17,491 119,486 138,634 104,954 Savings deposits.......................................................... 135,524 135,280 97,596 6,061 2,060 34,273 55,202 37,928 Accumulated for personal loan payments2.............. 389 387 275 69 206 115 Mutual savings banks................................................. 479 463 451 261 3 171 16 28 Other individuals, partnerships, and corporations.. 221,710 219,905 170,180 30,329 11,996 62,467 65,388 51,530 U.S. Government........................................................ 476 476 352 39 6 146 160 124 States and political subdivisions................................ 50,087 49,915 37,065 2,060 1,307 16,494 17,205 13,023 Foreign governments, central banks, etc................... 12,682 12,048 11,891 7,369 1,315 3,174 32 791 Commercial banks in United States......................... 8,611 8,417 7,858 4,119 775 2,546 418 753 Banks in foreign countries......................................... 2,405 1,813 1,742 1,561 29 145 7 662 Total deposits.................................................................. 748,116 741,489 575,887 107,355 28,799 207,936 231,797 172,229 Federal funds purchased and securities sold under agreements to repurchase........................................... 52,325 51,139 48,351 10,048 4,295 26,357 7,651 3,974 Other liabilities for borrowed money........................... 6,049 4,852 4,505 1,571 63 2,406 464 1,544 Mortgage indebtedness.................................................. 715 712 509 77 4 259 169 206 Bank acceptances outstanding....................................... 11,433 11,221 10,936 6,155 469 3,938 373 497 Other liabilities.............................................................. 28,784 25,043 20,426 4,397 1,346 8,029 6,653 8,358 Total liabilities................................................................ 847,421 834,456 660,614 129,603 34,977 248,927 247,107 186,807 Minority interest in consolidated subsidiaries.............. 6 5 2 2 3 Total reserves on loans/securities.................................. 8,688 8,649 7,089 1,594 488 2,668 2,338 1,600 Reserves for bad debts (IRS)..................................... 8,402 8,366 6,909 1,593 488 2,598 2,230 1,493 Other reserves on loans.............................................. 116 115 70 1 17 51 46 Reserves on securities................................................. 171 169 110 53 57 60 Total capital accounts.................................................... 63,655 63,043 48,244 9,372 2,115 16,748 20,010 15,410 Capital notes and debentures..................................... 4,290 4,227 3,423 755 61 1,673 933 868 Equity capital.............................................................. 59,364 58,817 44,822 8,616 2,054 15,076 19,076 14,542 Preferred stock...................................................... 54 43 24 10 13 30 Common stock........................................................ 14,821 14,724 11,015 2,188 568 3,560 4,699 3,806 Surplus..................................................................... 25,397 25,225 19,227 3,720 1,140 6,840 7,526 6,170 Undivided profits.................................................... 18,124 17,920 13,908 2,704 301 4,398 6,504 4,216 Other capital reserves.............................................. 968 904 649 4 44 267 334 319 Total liabilities, reserves, minority interest, capital accounts....................................................................... 919,770 906,154 715,950 140,569 37,581 268,343 269,457 203,820 228,352 225,821 165,881 26,717 6,117 54,535 78,512 62,471 724,271 717,664 555,930 103,014 27,229 199,287 226,400 168,341 519,116 510,735 401,694 81,665 24,493 150,485 145,050 117,423 Selected ratios: Percentage of total assets Cash and balances with other banks......................... 13.9 13.8 14.9 19.6 12.8 15.0 12.8 10.3 21.2 21.3 19.4 11.7 14.9 17.6 25.9 27.4 Trading account securities..................................... .9 .9 1.1 2.2 2.2 1.4 .1 U.S. Treasury...................................................... .3 .3 .4 .7 1.2 .4 States and political subdivisions................ .4 .4 .5 1.0 .7 .6 All other trading account securities .................. .2 .2 .3 .5 .3 .4 Bank investment portfolios.................................... 20.3 20.5 18.3 9.5 12.7 16.2 25.8 27.4 5.6 5.7 5.1 3.1 3.6 4.6 6.8 7.6 10.5 10.7 9.9 4.9 6.5 9.0 13.9 12.8 4.1 4.1 3.3 1.5 2.6 2.6 5.1 7.0 59.7 59.7 60.0 59.7 67.2 61.3 57.9 58.7 All other assets............................................................ 5.1 5.1 5.6 9.0 5.1 6.1 3.4 3.6 Total loans and securities.......................................... 80.9 81.0 79.5 71.4 82.1 78.9 83.8 86.1 .9 1.0 1.0 1.1 1.3 1.0 .9 .8 6.5 6.5 6.3 6.1 5.5 5.6 7.1 7.1 6.9 7.0 6.7 6.7 5.6 6.2 7.4 7.6 Number of banks........................................................... 14,465 14,216 5,780 13 9 155 5,603 8,685 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 WEEKLY REPORTING BANKS n MAY 1975 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities To nonbank Total involving— financial loans instituti ons Wednesday and To brokers To invest­ To Com­ and dealers others ments com­ To mer­ Agri­ Total mer­ U.S. Other others Total 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 Apr. 3.................... 384,367 16,688 15,172 937 355 224280,449 118,477 3,795 726 4,557 138 2,772 9,088 19,086 56,257 10.................... 385,133 16,440 15,003 891 237 309281,091 118,926 3,790 857 4,731 138 2,753 8,950 19,263 56,349 17................... 386,531 15,633 14,155 867 271 340284,031 120,453 3,788 770 4,756 134 2,787 9,406 19,647 56,571 24.................... 382,529 14,936 13,495 857 207 377282,274119,795 3,807 481 4,433 133 2,770 8,922 19,538 56,716 1975 Mar. 5................... 399,986 22,935 17,689 2,904 1,377 965289,909 126,769 3.424 1,618 3,249 2,408 9,761 20,521 59,524 12................... 399,940 22,196 16,103 3,438 1,510 1,145289,474125,701 3,447 3,284 3,467 2,395 9,488 20,299 59,585 19................... 395,863 19,539 14,675 2,320 1,537 1,007288,234126,027 3,402 1,573 3,699 2.374 9,443 20,225 59,542 26................... 393,847 19,373 15,316 2,072 1,196 789286,180125,732 3,393 914 3,212 2.374 9,280 20,233 59,508 Apr. 2*,............... 397,163 21,607 17,153 2,364 1,285 805286,813 125,970 3,395 1,341 3,036 2,359 9,622 20,282 59,474 9 p 398,004 21,643 16,744 2,995 1,158 746286,078 125,874 3,406 1,440 2,884 2.351 9,360 20,280 59,440 16p..\\'.\\\\ 397,450 20.463 16,633 1,828 1,255 747 286,527 126,056 3,414 855 2,715 2.352 9,821 20,341 59,489 23*................. 389,432 16,613 13,199 1,848 954 612 284,255 125,291 3,435 742 2,476 2,349 9,118 20,256 59,459 30*................. 391,304 17.464 14,094 1,580 1,010 780284,977 125,413 3.425 606 2,561 2,351 9,296 20,289 59,358 New York City 191A Apr. 3................... 84,328 2,382 2,377 66,712 34,300 149 630 2,567 609 3,121 6,601 6,420 10.................... 83,371 1,330 1,287 66,688 34,235 151 765 2,709 614 3,083 6,684 6,419 17................... 84,399 1,746 1,683 22 67,698 34,659 150 656 2,907 605 3,327 6,788 6,489 24................... 82,735 2,117 2,076 66,466 34,295 156 403 2,667 599 3,024 6,815 6,504 1975 Mar. 5................... 90,795 1,359 1,111 121 126 74,080 39,356 113 1,421 2,239 485 3,432 8,109 7,429 12................... 91,554 1,807 1,376 144 286 74,490 38,870 111 2,987 2,361 489 3,275 7,922 7,438 19................... 90,670 1,892 1,443 133 315 73,266 38,857 110 1,354 2,649 482 3,283 7,938 7.444 26.................... 89,283 2,024 1,813 131 80 71,930 38,738 109 781 2,280 476 3,167 7,959 7.444 Apr. 2 *................. 90,579 2,711 2,480 94 137 72,360 38,716 101 1,206 2,125 468 3,359 7,963 7,459 9 p................. 89,659 1,928 1,688 95 145 71,817 38,474 101 1,145 2,084 463 3,273 7,903 7,447 16*................. 90,362 3,134 2,886 86 162 71,477 38,523 101 751 1,841 468 3,488 7,857 7,483 23*................. 87,420 2,568 2,436 108 24 70,114 38,195 100 583 1,687 465 3,112 7,821 7,462 30*................. 87,975 2,975 2,756 69 10 140 70,570 38,254 100 503 1,747 457 3,205 7,781 7,474 Outside New York City 1974 Apr. 3. 300,039 14,306 12,795 937 355 219213,737 84,177 3,646 96 1,990 103 2,163 5,967 12,485 49,837 10. 301,762 15,110 13,716 885 237 272214,403 84,691 3,639 92 2,022 103 2,139 5,867 12,579 49,930 17. 302,132 13,887 12,472 861 249 305216,333 85,794 3,638 114 1,849 99 2,182 6,079 12,859 50,082 24. 299,794 12,819 11,419 852 207 341215,808 85,500 3,651 78 1,766 98 2,171 5,898 12,723 50,212 1975 Mar. 5. 309,191 21,576 16,578 2,783 1,376 839215,829 87,413 3,311 197 1,010 1,923 6,329 12,412 52,095 12. 308,386 20,389 14,727 3,294 1,509 859214,984 86,831 3,336 297 1,106 1,906 6,213 12.377 52,147 19. 305,193 17,647 13,232 2,187 1,536 692214,968 87,170 3,292 219 1,050 1,892 6,160 12,287 52,098 26. 304,564 17,349 13,503 1,941 1,196 709214,250 86,994 3,284 133 932 1,898 6,113 12,274 52,064 Apr. 2*. 306,584 18,896 14,673 2,270 1,285 668214,453 87,254 3,294 135 911 1,891 6,263 12,319 52,015 9*. 308,345 19,715 15,056 2,900 1,158 601214,261 87,400 3,305 295 800 1,888 6,087 12.377 51,993 16*. 307,088 17,329 13,747 1,742 1,255 585215,050 87,533 3,313 104 874 1.884 6,333 12,484 52,006 23*. 302,012 14,045 10,763 1,740 954 588214,141 87,096 3,335 159 789 1.884 6,006 12,435 51,997 30*. 303,329 14,489 11,338 1,511 1,000 640214,407 87,159 3,325 103 814 1,894 6,091 12,508 51,884 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 a 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 Bills 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 pation* Large banks— Total 1974 3,928 6,234 33,179 1,747 20,465 25,339 5,166 4,273 11,920 3,980 61,891 7,356 40,981 2.443 11,111 ..................Apr. 3 3,859 6,345 33,226 1,752 20,152 25,694 5,195 4,306 12,192 4,001 61,908 7,510 40,881 2,438 11,079 .............................10 3,803 6,212 33,286 1,866 20,552 24,784 4,439 4,222 12,094 4,029 62,083 7,656 41,026 2.443 10,958 .............................17 3,977 6,352 33,267 1,895 20,188 23,419 3,202 4,192 12,031 3,994 61,900 7,544 41,028 2,417 10,911 .............................24 1975 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 5,168 34,132 1,363 18,392 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 2,740 5,159 33,937 1.308 18,306 27,243 5,092 3,705 14,592 3,854 61,051 6,108 39,973 2.452 12,518 ...........................26 2,794 5,131 33,915 1,329 18,083 27,855 4,844 4,027 15,194 3,790 60,888 5,904 39,885 2,416 12,683 ................Apr. 2* 2,651 5,125 33,841 1,268 18,076 29,146 5,264 4,054 15,969 3,859 61,137 6.196 39,869 2.452 12,620 ........................... 9* 2,690 5,193 33,881 1,343 18,296 28,969 5,267 3,986 15,947 3,769 61,491 6,543 39,932 2,475 12,541 ...........................16* 2,607 5,236 33,876 1,209 18,122 27,931 4,807 4,025 15,494 3,605 60,633 6,276 39,641 2,459 12,257 ...........................23 * 2,680 5,218 33,878 1,304 18,520 28,481 4,958 3,941 16,053 3,529 60,382 6.091 39,609 2,418 12,264 ...........................30* New York City 1974 1,396 3,018 2,467 783 4,616 5,225 1,643 531 1,783 1,268 10,009 1,944 5,440 567 2,058 ......... Apr. 3 1,374 2,950 2,480 784 4,405 5,233 1,633 557 1,778 1.265 10,120 2,081 5,448 564 2,027 ...........................10 1,357 2,796 2,501 790 4,638 4,662 1,086 573 1,738 1.265 10,293 2,200 5,524 564 2,005 ...........................17 1,405 2,845 2,513 781 4,424 4,004 485 559 1,704 1,256 10,148 2,108 5,476 548 2,016 ...........................24 1975 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 2,889 1,074 9,715 1,682 5,183 531 2,319 ...........................12 1,293 2,686 2,597 665 3,888 5,i 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 1,394 2,565 2.575 668 3,742 5,999 783 497 3,456 1,263 9,509 1,604 4,900 526 2,479 ...............Apr. 2 p 1,344 2,456 2,566 609 3,932 6,502 852 540 3,809 1,301 9,412 1,583 4,879 525 2,425 ..........................9 p 1,357 2,504 2.575 648 3,860 6,107 704 438 3,736 1,229 9,644 1,757 4,985 557 2,345 ...........................16* 1,253 2,519 2,588 526 3,784 5,514 624 484 3,320 1,086 9,224 1,709 4,722 533 2,260 ...........................23 1,301 2,472 2,586 614 4,058 5,397 478 428 3,458 1,033 9,033 1,564 4,662 531 2,276 ...........................30* Outside New York City 1974 2,532 3,216 30,712 964 15,849 20,114 3,523 3,742 10,137 2,712 51,882 5,412 35,541 1,876 9,053 ...............Apr. 3 2,485 3,395 30,746 968 15,747 20,461 3,562 3,749 10,414 2,736 51,788 5,429 35,433 1,874 9,052 ...........................10 2,446 3,416 30,785 1,076 15,914 20,122 3,353 3,649 10,356 2,764 51,790 5,456 35,502 1,879 8,953 ...........................17 2,572 3,507 30,754 1,114 15,764 19,415 2,717 3,633 10,327 2,738 51,752 5,436 35,552 1,869 8,895 ...........................24 1975 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 2,555 31,530 654 14,623 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 1,351 2,526 31,346 634 14,636 21,555 4,081 3,350 11,545 2,579 51,410 4,424 34,939 1,930 10,117 ...........................26 1,400 2,566 31,340 661 14,341 21,856 4,061 3,530 11,738 2,527 51,379 4,300 34,985 1,890 10,204 ................Apr. 2* 1,307 2,669 31,275 659 14,144 22,644 4,412 3,514 12,160 2,558 51,725 4,613 34,990 1,927 10.195 ...........................9* 1,333 2,689 31,306 695 14,436 22,862 4,563 3,548 12,211 2,540 51,847 4,786 34.947 1,918 10.196 ...........................16* 1,354 2,717 31,288 683 14,338 22,417 4,183 3,541 12,174 2,519 51,409 4,567 34,919 1,926 9,997 ...........................23* 1,379 2,746 31,292 690 14,462 23,084 4,480 3,513 12,595 2,496 51,349 4,527 34.947 1,887 9,988 ...........................30* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ MAY 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 Apr. 3..................... 33,262 20,994 4,037 12,812 1,477 23,188 480,137 163,147 113,210 6,064 3,714 24,731 838 10..................... 32,794 21,499 4,221 12,695 1,480 22,903 480,725 161,834 113,146 6,064 1,714 24,580 779 17..................... 35,297 22,205 4,493 12,838 1,495 23,156 486,015 167,455 117,111 6,076 4,796 24,570 739 24..................... 29,510 21,945 4,543 11,747 1,519 23,285 475,078 155,738 110,523 5,890 3,573 22,294 651 1975 Mar. 5..................... 34,060 22,208 4,136 11,717 1,681 35,022 508,810 161,001 114,720 6,327 2,332 23,655 677 12..................... 32,055 19,650 4,505 11,537 1,681 35,035 504,403 158,996 116,472 5,868 1,714 22,034 649 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..................... 30,531 23,710 4,635 11,123 1,692 35,539 501,077 155,387 112,725 6,366 1,657 21,123 590 Apr. 2 *................... 33,453 22,265 4,499 11,647 1,700 35,575 506,302 162,031 117,808 6,418 1,281 22,434 899 9*................... 30,082 22,198 4,455 12,750 1,732 35,751 504,972 159,319 115,412 5,787 1,015 23,240 795 16*................... 33,326 24,933 4,649 11,974 1,707 35,224 509,263 163,786 119,324 6,300 2,327 22,519 783 23*................... 30,664 21,717 4,770 10,952 1,754 35,216 494,505 156,206 113,769 5,589 1,541 21,483 722 30*................... 32,678 23,887 4,711 12,560 1,826 35,815 502,781 163,010 115,418 6,617 4,388 23,119 812 New York City 1974 Apr. 3................... 11,436 5,592 507 5,833 691 7,182 115,569 47,616 24,217 491 819 12,477 466 10..................... 12,250 5,401 497 6,469 691 7,139 115,818 47,450 23,835 405 313 12,702 414 17..................... 11,518 6,223 495 5,855 692 7,205 116,387 47,709 24,380 313 1,188 12,469 367 24..................... 10,512 6,272 509 5,688 696 7,188 113,600 44,855 23,980 305 635 11,572 329 1975 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 Apr. 2*................. 11,469 6,810 485 4,666 782 12,481 127,272 46,093 26,600 583 116 10,451 532 9*................... 10,883 7,497 507 6,253 781 12,593 128,173 45,702 25,161 309 110 11,758 445 16*................... 11,569 7,503 506 5,292 793 12,361 128,386 45,936 26,550 498 236 10,899 442 23*................. 11,622 6,580 512 4,491 797 12,352 123,774 45,280 25,026 286 235 11,017 403 30*................... 11,859 6,896 499 6,203 804 12,428 126,664 47,850 26,466 490 859 11,999 432 Outside New York City 1974 Apr. 3.................... 21,826 15,402 3,530 6,979 786 16,006 364,568 115,531 88,993 5,573 2,895 12,254 372 10..................... 20,544 16,098 3,724 6,226 789 15,764 364,907 114,384 89,311 5,659 1,401 11,878 365 17..................... 23,779 15,982 3,998 6,983 803 15,951 369,628 119,746 92,731 5,763 3,608 12,101 372 24..................... 18,998 15,673 4,034 6,059 823 16,097 361,478 110,883 86,543 5,585 2,938 10,722 322 1975 Mar. 5..................... 22,112 14,895 3,655 6,899 914 22,433 380,099 114,642 88,582 5,909 1,859 12,894 317 12..................... 20,777 14,360 4,004 6,588 916 22,260 377,291 113,912 90,261 5,540 1,466 11,576 308 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..................... 18,563 16,657 4,140 6,153 921 22,773 373,771 109,512 87,194 5,815 1,389 10,397 283 Apr. 2*................. 21,984 15,455 4,014 6,981 918 23,094 379,030 115,938 91,208 5,835 1,165 11,983 367 9*................. 19,199 14,701 3,948 6,497 951 23,158 376,799 113,617 90,251 5,478 905 11,482 350 16*.................. 21,757 17,430 4,143 6,682 914 22,863 380,877 117,850 92,774 5,802 2,091 11,620 341 23*................. 19,042 15,137 4,258 6,461 957 22,864 370,731 110,926 88,743 5,303 1,306 10,466 319 30*................. 20,819 16,991 4,212 6,357 1,022 23,387 376,117 115,160 88,952 6,127 3,529 11,120 380 For notes see page A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 o 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 Total <5 ical tic eign Banks Others Govts., mer­ cers’ Sav­ Other sub­ inter­ govts. 2 etc. 2 cial checks ings divi­ bank banks sions Large banks— Total 1974 1,327 4,701 8,562 197,888 58,485 102,517 23,578 5,114 7,480 54,544 823 6,301 19,604 ...................Apr. 3 2,203 4,670 8,678 200,141 58,394 104,080 23,986 5,330 7,651 54,569 1,017 6,250 19,091 ..............................10 1,671 4,422 8,070 200,935 58,036 103,904 24,733 5,490 8,105 53,303 939 6,060 19,597 ..............................17 1,479 4,669 6,659 203,065 57,923 105,641 24,993 5,676 8,152 51,234 1,728 6,111 19,490 ..............................24 1975 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 ..............................12 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 4,978 6,819 226,916 61,555 118,791 24,526 8,349 11,703 49,900 738 4,019 23,771 ..............................26 1.281 4,650 7,260 226,136 62,238 117,469 24,322 8,292 11,814 50,786 3,712 23,120 ...................Apr. 2? 1,373 4,637 7,060 225,326 62,508 116,371 24,387 8,279 11,822 52,706 3,662 23,379 .............................. 9 p 1,260 4,707 6,566 224,220 62,272 114,667 25,067 8,449 11,837 53,687 24 3,773 23,260 ..............................16p 1,178 4,777 7,147 224,297 62,327 114,434 25,292 8,549 11,780 45,198 1,041 3,623 23,619 ..............................23? 1,385 4,989 6,282 223,612 62,389 113,854 25,016 8,615 11,922 46,371 1,344 3,687 23,981 ..............................30? New York City 1974 1,122 3,534 4,490 36,230 5,130 22,080 1,804 3,222 3,847 11,785 240 2,821 6,970 ...................Apr. 3 1,916 3,471 4,394 37,241 5,127 22,810 1,815 3,390 3,946 11,420 145 2,851 6,807 ..............................10 1,456 3,262 4,274 37,421 5,090 22,698 1,724 3,475 4,269 11,368 150 2,895 6,959 ..............................17 1,233 3,415 3,386 37,797 5,076 22,901 1,726 3,581 4,345 11,206 385 2,849 6,646 ..............................24 1975 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 1,069 3,358 3,384 47,219 5,497 27,608 1,301 3,921 7,405 13,746 1,626 7,905 ...................Apr. 2p 1,170 3,210 3,539 46,759 5.541 27,163 1,284 3,891 7,431 15,006 1,441 8,543 .............................. 9 p 1,067 3,417 2,827 46,428 5,543 26,672 1,320 3,937 7,534 15,022 1,538 8,763 ..............................16 p 1,005 3,387 3,921 46,172 5.542 26,554 1,279 3,893 7,482 11,321 295 1,484 8,506 ..............................23p 1,211 3,553 2,840 45,839 5,550 26,234 1,262 3,777 7,684 11,464 470 1,424 8,796 ..............................30p Outside New York City 1974 205 1,167 4,072 161,658 53,355 80,437 21,774 1,892 3,633 42,759 583 3,480 12,634 .................Apr. 3 287 1,199 4,284 162,900 53,267 81,270 22,171 1,940 3,705 43,149 872 3,399 12,284 ..............................10 215 1,160 3,796 163,514 52,946 81,206 23,009 2,015 3,836 41,935 789 3,165 12,638 ..............................17 246 1,254 3,273 165,268 52,847 82,740 23,267 2,095 3,807 40,028 1,343 3,262 12,844 ..............................24 1975 203 1,374 3,504 177,657 54,952 90,657 23,543 3,639 4,388 40,196 2,343 15,622 ...................Mar. 5 206 1,391 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 1,330 2,908 179,969 56,148 91,153 23,221 4,495 4,423 36,105 685 2,191 15,641 ..............................26 212 1,292 3,876 178,917 56,741 89,861 23,021 4,371 4,409 37,040 2,086 15,215 ...................Apr. Ip 203 1,427 3,521 178,567 56,967 89,208 23,103 4,388 4,391 37,700 2,221 14,836 .............................. 9p 193 1,290 3,739 177,792 56,729 87,995 23,747 4,512 4,303 38,665 24 2,235 14,497 !!!!.!.................i6p 173 1,390 3,226 178,125 56,785 87,880 24,013 4,656 4,298 33,877 746 2,139 15,113 ..............................23» 174 1,436 3,442 177,773 56,839 87,620 23,754 4,838 4,238 34,907 874 2,263 15,185 ..............................30*> For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ MAY 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 ac­ Total and De­ included in time time deposits12 ties of Secur­ counts loans invest­ mand and savings deposits 11 banks ities (gross) ments deposits to ad­ (gross) ad­ their justed 9 ad­ justed i 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 Apr. 3................... 4.994 32,762 278,037 365,267 101,440 69,479 48,173 21,306 2,717 10................... 4.991 32,758 278,669 366,271 102,746 71,540 49,788 21,752 2,908 17................... 4.995 32,658 281,706 368,573 102,792 71,753 49,589 22,164 3,020 24................... 4.992 32,654 279,738 365,057 100,361 73,600 51,235 22,365 2,495 1975 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 34,649 292,896 381,166 103,193 88,059 60,427 27,632 36,791 20.094 16,697 1,684 19................... 5.636 34,638 290,414 378,504 100,646 88,038 60,023 28,015 36,542 19,943 16,599 2,671 26..................... 5,631 34,655 287,497 375,791 102,076 88,812 60,538 28,274 36,137 19,630 16,507 1 ,922 Apr. 2 *................. 5,661 34.788 288,473 377,216 104,863 87,397 59,135 28,262 35,774 19,402 16,372 1 ,950 9 p................. 5.653 34,859 288,326 378,609 104,982 86,545 58,260 28,285 35,580 19,166 16,414 2,834 16*................... 5,674 34,771 287.667 378,127 105,614 85,264 56,776 28,488 35,859 18,851 17,008 2,738 23*................... 5,665 34.788 285,062 373,626 102,518 85,017 56,581 28,436 36,055 18,799 17,256 2,175 30*................... 5,705 35,002 285.667 374,530 102,825 84,355 55,911 28,444 35,956 18,707 17,249 2,677 New York City 1974 Apr. 3.................... 1.370 8,537 65,321 80,555 22,884 21,933 15,093 6,840 1 ,829 10..................... 1.370 8,534 65,357 80,710 22,185 22,944 15,805 7,139 2,072 17..................... 1 ,376 8,509 66,404 81,359 22,534 22,969 15,660 7,309 1 ,683 24..................... 1 ,377 8,485 65,102 79,254 22,136 23,373 16,034 7,339 1 ,206 1975 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 19..................... 1.631 9,053 72,422 87,934 21,934 29,999 19,814 10,185 8,738 5,205 3,533 1,902 26..................... 1.631 9,047 70,752 86,081 22,913 30,384 20,197 10,187 8,603 5,138 3,465 1,014 Apr. 2 p................... 1,615 9,068 71,197 86,705 24,057 30,409 19,954 10,455 8,582 5,194 3,388 1,151 9 p...................... 1,602 9,120 70,713 86,627 22,951 30,101 19,647 10,454 8,538 5,153 3,385 2,086 16*................... 1,608 9,091 70,368 86,119 23,232 29,811 19,210 10,601 8,453 5,047 3,406 1 ,803 23*................... 1 ,615 9,101 68,993 83,731 22,406 29,625 19.154 10,471 8,357 4,964 3,393 1,341 30*................... 1 ,631 9,190 69,488 83,918 23,133 29,362 18,782 10,580 8,323 4,931 3,392 1 , (542 Outside New York City 1974 Apr. 3..................... 3,624 24,225 212,716 284,712 78,556 47,546 33,080 14,466 10..................... 3,621 24,224 213,312 285,561 80,561 48,596 33,983 14,613 836 17..................... 3,619 24,149 215,302 287,214 80,258 48,784 33,929 14,855 1,337 24..................... 3,615 24,169 214,636 285,803 78,225 50,227 35,201 15,026 1 ,289 1975 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 80,093 57,722 40,273 17,449 27,993 14,790 13,203 679 19..................... 4,005 25,585 217,992 290,570 78,712 58,039 40,209 17.830 27,804 14,738 13,066 769 26..................... 4,000 25,608 216,745 289,710 79,163 58,428 40,341 18,087 27,534 14,492 13,042 908 Apr. 2*................... 4,046 25,720 217,276 290,511 80,806 56,988 39,181 17,807 27,192 14,208 12,984 799 9*................... 4,051 25,739 217,613 291,982 82,031 56,444 38,613 17.831 27,042 14,013 13,029 748 16*................... 4,066 25,680 217,299 292,008 82,382 55,453 37,566 17,887 27,406 13,804 13,602 935 23*................... 4,050 25,687 216,069 289,895 80,112 55,392 37,427 17,965 27,698 13,835 13,863 834 30*................... 4,074 25,812 216,179 290,612 79,692 54,993 37,129 17,864 27,633 13,776 13,857 1 ,035 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. ^ 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

MAY 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 Apr. Apr. Apr. Apr. Apr. 2nd 1st 30 23 16 9 2 Apr. Mar. Feb. IV III half half Durable goods manufacturing: Primary metals.................................. 2.058 2,077 2,096 2,058 2,029 14 72 10 39 77 63 140 56 Machinery........................................... 8,141 8,178 8,259 8,154 8,044 53 -228 4 -653 -127 349 222 1,848 Transportation equipment.............. 3,653 3,672 3,685 3,702 3,633 -152 -112 95 -7 365 340 705 587 Other fabricated metal products.. 2,895 2,891 2,934 2,972 2,949 -35 94 -8 19 -178 253 75 503 Other durable goods.......................... 4,446 4,458 4,466 4,448 4,443 -79 -85 -421 -265 512 247 909 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,646 3,678 3,668 3,663 3,708 -183 -157 -283 -1,092 484 500 984 -220 Textiles, apparel, and leather........... 3,316 3,287 3,317 3,333 3,316 -43 49 90 -151 -725 107 -618 909 Petroleum refining.......................... 2,433 2.316 2,375 2,283 2.255 234 28 -66 -51 473 494 967 -108 Chemicals and rubber....................... 3,332 3.316 3,351 3,294 3,457 -117 79 87 67 -55 311 256 610 Other nondurable goods................... 2,234 2,230 2,230 2,206 2,202 23 51 -228 -295 -135 158 23 338 Mining, including crude petroleum and natural gas.............................. 4,809 4,826 4,922 4,812 4,806 44 -50 -272 556 290 846 387 Trade: Commodity dealers................... 1 ,334 1 ,343 1,325 1,373 1,441 -95 -179 -105 -648 703 -195 508 -273 Other wholesale......................... 5,858 6,001 6,023 6,147 6,148 -317 120 -146 -553 349 135 484 829 Retail............................................ 6,549 6,497 6,583 6,653 6,627 35 102 -88 -193 -246 -219 -465 1,099 Transportation......................................... 6,244 6,283 6,267 6,220 6,267 8 38 — 4 -150 261 22 283 139 Communication....................................... 2,303 2,307 2,285 2,252 2.256 173 -118 -38 -369 90 -92 -2 475 Other public utilities.............................. 7,484 7,455 7,442 7,558 7,687 -116 -17 -281 -1,018 609 1,088 1,697 1 ,044 Construction............................................. 5,609 5,595 5,575 5,536 5,556 42 -64 -44 -535 -276 231 -45 594 Services....................................................... 10,967 11,010 11,038 II,073 11,162 -289 -202 -155 -698 171 133 304 All other domestic loans....................... 9,918 9,858 10,217 10,138 10,075 76 6 -126 -290 387 357 744 i1 , i11974 Bankers acceptances.............................. 2.059 2,058 2,201 2,161 2,163 -173 -134 507 571 309 -365 -56 443 Foreign commercial and industrial loans................................................... 4,425 4,457 4,327 4,370 4,344 135 -108 104 63 -249 -208 -457 6ll Total classified loans.............................. 103,713 103,793 104,586 104,406 104,568 -675 -767 -810 -6,637 2,578 4,264 6,842 12,491 Comm, paper included in total clas­ sified loans1....................................... 247 Total commercial and industrial loans of large commercial banks........... 125,413 125,291 126,056 125,874125,970 -329 -727 -954 -6,133 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. Apr. Mar. Feb. Jan. 31 Nov. Oct. Sept. Aug. I IV III II 2nd 30 26 26 29 (Tues.) 27 30 25 28 half Durable goods manufactur­ ing: Primary metals.................... 1,323 1,284 1,237 1 ,249 1,210 1,176 1,107 1,133 1,104 74 77 28 41 105 Machinery........................... 4,302 4,071 4,117 4,138 4,145 4,049 3,970 3,896 3,789 -74 249 610 172 859 Transportation equipment, 1 ,705 1 ,672 1,712 1 ,737 1 ,673 1,586 1,570 1,535 1,419 -1 138 125 45 263 Other fabricated metal products........................... 1 ,280 1,312 1,323 1,243 1,197 1,113 1,093 1,066 1,000 115 131 112 43 243 Other durable goods........., 2,210 2,251 2,256 2,288 2,391 2,361 2,339 2,268 2,198 -140 123 161 192 284 Nondurable goods manufac­ turing: Food, liquor, and tobacco, 1 ,571 1,561 1 ,614 1,703 1,763 1,674 1,661 1,649 1,604 -202 114 78 42 192 Textiles, apparel, and leather............................... 1,091 1,158 1,083 1,124 1,145 1,179 1,187 1,151 1,171 13 -6 23 39 17 Petroleum refining............. 1,617 1,483 1,458 1,542 1,518 1,272 1,208 1,097 1,048 -35 421 134 18 555 Chemicals and rubber. 1,814 1,846 1,812 1,839 1,878 1,818 1,820 1,778 1,790 -32 100 41 134 141 Other nondurable goods., 1 ,126 1 ,130 1 ,119 1,221 1,235 1 ,170 1,187 1,204 1,189 -105 31 33 32 64 Mining, including crude pe­ troleum and natural gas, 3,636 3,537 3,446 3,523 3,701 3,620 3,468 3,339 3,319 -164 362 209 -115 571 Trade: Commodity dealers., 142 150 153 169 155 171 157 139 166 -5 16 -2 1 14 Other wholesale 1 ,487 1,450 1,420 1,472 1,492 1,431 1,488 1,449 1,419 -42 43 43 83 86 Retail........................... 2,192 2,283 2,298 2,369 2,594 2,602 2,578 2,527 2,529 -311 67 99 -52 166 Transportation........................ 4,492 4,524 4,505 4,455 4,550 4,379 4,370 4,349 4,322 -26 201 -76 8 125 Communication...................... 1,148 1,135 1,125 1,158 1,082 1,076 1,047 1,029 1,021 53 53 -1 64 52 Other public utilities.............. 4,017 4,034 3,870 3,885 3,963 3,987 3,810 3,672 3,664 71 291 229 289 520 Construction........................... 2,272 2,197 2,191 2,224 2,294 2,281 2,237 2,272 2,218 -97 22 142 232 164 Services.................................... 5,352 5,430 5,370 5,320 5,532 5,417 5,340 5,350 5,301 -102 182 77 197 259 All other domestic loans 3,210 3,082 3,144 3,079 3,224 3,255 3,215 3,122 3,074 -142 102 105 209 207 Foreign commercial and in­ dustrial loans.................. 2,596 2,528 2,544 2,524 2,457 2,473 2,487 2,401 2,500 71 56 -147 198 -91 Total loans.............................. 48,583 48,118 47,797 48,262 49,199 48,090 47,339 46,426 45,845 -1,081 2,773 2,023 1,872 4,796 1 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 □ MAY 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—June........................................................................................ 18.1 89.6 56.2 1.3 10.5 175.8 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......................................................................................... 19.0 118.8 '73.3 2.3 11 .7 '225.0 1975—Mar.p.................................................................................... 18.6 111.3 73.2 2.3 10.9 216.3 Weekly reporting banks: 1971—Dec......................................................................................... t4.4 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—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 13.9 64.4 28.4 2.0 6.3 115.0 14.7 64.4 28.4 2.0 6.4 115.8 14.6 65.9 28.7 2.1 6.5 117.7 Dec......................................................................................... 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 Mar.?.................................................................................... 14.1 63.2 28.2 2.2 6.4 114.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec, 31, Class of Dec. 31, Dec. 31, June 30, Dec, 31, bank 1972 1973 1974 1974 bank 1972 1973 1974 1974 All commercial............................ 559 507 460 389 All member—Cont. Insured.................................... 554 503 457 387 Other large banks *............ 69 58 63 69 National member................... 311 288 265 236 All other member 1............. 313 294 267 206 State member........................... 71 64 65 39 All nonmember........................ 177 155 130 115 All member.................................. 381 352 330 275 172 152 127 112 Noninsured........................... 5 3 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-l4-A-l7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 By type of loan Date Total Commercial Real All and estate other industrial 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 12........................... 4,609 2,755 175 1,679 19........................... 4,510 2,661 174 1 ,675 26........................... 4,545 2,707 179 1,659 Mar. 5........................... 4,688 2,741 201 1,746 12........................... 4,721 2,800 201 1,720 1 To bank’s own foreign branches, nonconsolidated non­ 19........................... 4,693 2,769 204 1,720 bank affiliates of the bank, the bank’s holding company (if 26........................... r4,677 2,791 204 n ,682 not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Apr. 2........................... 4,584 2,714 202 1 ,668 Note.—Series changed on Aug. 28, 1974. For a comparison 9........................... 4,587 2,748 201 1,638 of the old and new data for that date, see p. 741 of the Oct. 16........................... 4,529 2,715 201 1 ,613 1974 Bulletin. Revised figures received since Oct. 1974 23........................... 4,519 2,704 197 1,618 that affect that comparison are shown in note 2 to this table 30........................... 4,587 2,744 204 1,639 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 companies1 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 placed3 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-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 Feb.. 52,325 5,167 32,426 14,732 1,854 7,228 18,579 4,864 4,370 494 993 130 12,593 3,974 4,210 10,396 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 □ MAY 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 9%-98/ifr- 1974—June 3. 11%b-11«/io- 1974—Oct. 28, 10%-11- 1975—Feb. 3 834-9-914■- 10a 11% <Wa»- 9%-934 15, lOe-lOVio- 7. ll^-ll% a- 11% 4, 834-9-914* 10 Va ll«/io 10, 834-9a 19, 10-lOi/io- 10. Nov. 4 1034-1 la- 18, 8%-834a-9 10 Va* 21. ll$-ll% a 1114 24, 8%a-834 24, ll%a-1134 11 10%-1034- Apr. 23. 10VAm-\0*ho Mar. 3 814-8% a 24. 10Va»- 25, ll%a-ll%- 14 10%-1034a- 5, svA»m 10*/io— 118/10 11 6, 734-8148- 10% 26, lm -im a- 18, 10-10%- 8% 25. 10Va-10*Iio- ll8/io 1034a 10 734-8.-814 28, ll%a-ll8/n 19 10-1014- 17, 734-8b 26. 10%- 18 7%-734a-8 July 3 ll^a-118/io- 1034a 24 7%a-734_8 loH-11 12 25, 10-1014- 25. 7%a-734 30. 10%B- 5, 11 s/io-l 2a I0%a 31. 714-7% a- 106/io— 9 12a-12% 734 103^-11 23 Dec. 2. 934-10-1014 iorra2- -10%a May 2. 10Vi-10«/io- 1034 B-ll Aug. 20 1034-12a 1975—Jan. 9, 9%-10- 3. 106/io-10%a 10i4a- -11 Sept. 26, 1034-11%- 10% 6. lOe/io-lO 1134-12a 13, 9%-934-10- 11a 10y4a 7. 11a Oct. 7, 1034-11%- 15 9%-934- 10, 11-ll^a 1134.-12 10a-10i4 13, ll^a-llVio 15 1034-1H4- 20 9%-934a-10 17, 1114-11-Vio H%- 28 9%b-934-10 -11%" 1134- 29 9%a-934 20 H%i-ll% 21, 1034-1114- 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 rate keyed to money market variables, a denotes the predominant prime rate,” this table shows only the “large-business prime rate,” which is the rate quoted by commercial banks to large businesses. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center 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 ‘ 1*3:03’ 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

MAY 1975 o INTEREST RATES A 27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills 6 6-month bills 6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1-year issues? days months months2 on new yield on new yield bill (mar­ Other 7 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—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 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 Apr................. 6.11 6.15 5.97 6.15 5.49 5.694 5.61 6.012 6.00 6.40 6.83 7.76 Week ending— 1975—Jan. 4... 9.13 8.84 8.47 9.08 7.35 7.113 6.96 7.101 6.99 6.70 7.17 7.26 11 7.95 7.83 7.98 8.33 7.70 6.698 6.59 6.682 6.64 6.45 6.91 7.23 18... , 7.63 7.53 7.65 7.66 7.22 6.678 6.54 6.646 6.54 6.44 6.95 7.32 25........ 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 8........ 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 6.33 6.15 5.455 5.47 5.675 5.66 5.67 6.04 6.83 8........ 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 Apr. 5........ 6.03 6.03 5.88 6.15 5.59 5.562 5.62 5.786 5.90 6.20 6.58 7.47 12 6.18 6.23 5.95 6.20 5.28 6.021 5.74 6.351 6.09 6.48 6.94 7.74 19........ 6.15 6.20 6.00 6.11 5.44 5.538 5.44 5.843 5.86 6.30 6.76 7.75 26... 6.13 6.13 6.00 6.16 5.54 5.653 5.66 6.067 6.09 6.49 6.91 7.90 May 3........ 6.03 6.15 6.00 6.07 5.71 5.716 5.51 6.158 5.95 6.36 6.81 7.87 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 □ MAY 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 Total i States (long­ Re­ Aaa Baa Indus­ Rail­ Public term) Total 1 Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970..................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971..................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972..................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 .................... 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974.................... 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—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 13.14 1975—Jan........... 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 Apr.......... 7.03 6.95 6.46 7.43 9.67 9.65 9.49 8.95 10.34 9.30 9.39 9.88 8.27 4.34 Week ending— 1975—Mar. 1. 6.64 6.51 6.10 7.10 8.94 9.06 9.26 8.57 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 8.59 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 8.61 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 8.69 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 8.78 10.29 9.15 9.29 9.70 8.17 4.42 Apr. 5. 6.88 6.89 6.45 7.40 9.80 9.70 9.38 8.87 10.28 9.19 9.35 9.75 8.08 4.49 12. 7.05 6.99 6.55 7.40 9.65 9.60 9.46 8.94 10.32 9.26 9.38 9.83 8.20 4.47 19. 7.03 6.92 6.40 7.40 9.51 9.55 9.50 8.95 10.34 9.32 9.38 9.90 8.35 4.26 26. 7.08 6.99 6.45 7.50 9.66 9.71 9.53 8.97 10.37 9.36 9.41 9.94 8.29 4.28 May 3. 7.09 6.94 6.40 7.45 9.80 9.69 9.57 9.01 10.43 9.38 9.45 10.00 8.42 4.22 Number of issues2............. 14 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number 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. Average daily volume of trading, presently 1971. conducted 5 days per week for 6 hours per day. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and 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

MAY 1975 □ SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43=10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m S v g t . ) ­ . S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d 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 3 7 0 u 1 0 3 g , ) = . NYSE AMEX 197 0 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 3,376 197 1 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 15,381 4,234 197 2 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 4,447 197 3 . 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 3,004 197 4 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—Ap r 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—Ja..........n 59....7..0... .......7..0.....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 Apr........ 57.05 69.5 55.8 84.72 95.27 38.55 38.19 44.91 49.74 31.70 30.01 47.35 82.03 20,334 2,302 Week ending— 1975—Apr. 5, 58.15 69.0 55.9 82.16 92.15 37.63 38.39 43.60 47.95 31.08 30.19 46.42 79.45 14,888 1,760 12. 56.90 68.7 55.6 82.43 92.54 37.54 37.98 43.70 48.18 31.02 29.93 46.20 80.01 18,290 2,006 19. 57.05 70.8 56.0 86.41 97.26 39.08 38.46 45.76 50.81 31.94 30.12 48.32 83.07 26,930 3,006 26. 56.72 69.4 55.9 86.62 97.55 39.30 38.22 45.92 51.05 32.33 30.00 48.32 83.98 21,886 2,520 Mar. 3. 56.63 69.3 55.8 87.30 98.39 39.64 38.05 46.23 51.51 32.45 30.00 47.84 84.23 19,904 2,276 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1974—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 4,173 924 4,020 881 148 31 5 12 2,060 437 1,354 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 Mar....................................... 4,320 4,180 134 6 514 1,764 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 □ MAY 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 E pe n r d i o o d f l ( d d i m o o e o n b f i l l ­ t s ­ 8 m 0 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t r N a e t e d u t i s t 60 o r p e m in r o c d r e e e n b t i t 6 L s 0 t e a p s t s e u r s t h c a e n n t of ( b m d T a o i l o l a l l t l i n a a o c l r n e s s ) lars)! 1974—Mar...................... 40.0 41.2 18.9 6,784 1974—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 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 44.4 40.1 15.5 7,277 Mar.. 4,180 6.5 8.0 15.3 27.6 25.8 16.9 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 Mort­ U.S. S a t n a d te C r o a r t p e o­ Cash O as t s h e e ts r li T a t o b ie t i s a li l ­ De i p ts os­ l O ia t t i b h e i s e li r ­ G re e a s n e c e r ­ r v a e l classi ( f i i n ed m b o y n t m h a s) turity gage Other Govt. local and and counts govt. other1 g r e es n e e r r v a e l 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—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.... 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 Feb... 75,057 4,658 2,677 1,017 23,402 1,856 2,709 111,376 100,149 3,211 8,016 654 360 217 579 1,810 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

MAY 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 1974—Jan................................... 253,531 11,465 4,410 3,463 3,592 119,079 93,082 25,997 81,490 7,816 20,242 13,439 Feb.................................. 254,739 11,535 4,429 3,518 3,588 119,715 93,672 26,043 81,745 7,825 20,382 13,537 Mar................................. 255,847 11,766 4,595 3,511 3,660 119,936 94,037 25,899 81,971 7,831 20,538 13,805 Apr.................................. 256,583 11,594 4,317 3,526 3,751 120,466 95,010 25,456 82,469 7,795 20,830 13,429 May................................ 257,518 11,606 4,318 3,538 3,750 120,642 95,721 24,921 82,750 7,840 21,067 13,613 June................................ 258,398 11,617 4,290 3,562 3,765 120,526 95,934 24,592 83,228 7,878 21,321 13,828 July................................. 259,187 11,675 4,301 3,572 3,802 120,404 96,507 23,897 83,697 7,924 21,581 13,906 Aug................................. 258,951 11,725 4,338 3,577 3,810 119,139 96,723 22,416 84,119 7,998 21,888 14,088 Sept................................. 258,668 11,718 4,306 3,596 3,816 117,740 96,861 20,879 84,509 8,055 22,202 14,444 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 1975—Jan.................................. 266,823 12,065 4,461 3,669 3,935 121,986 93,690 23,110 86,526 8,313 23,058 14,875 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 period 4 ities i 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—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.......................... 250,845 26,995 23,754 301,594 249,480 18,815 21,938 3,015 8,346 8,787 Mar.*...................... 252,461 28,285 24,288 305,034 255,964 18,648 20,411 3,237 6,774 10,063 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 a MAY 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 accounts 1 Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes 2 ing S i p ss e u c e ia s l Other balance Fiscal year: 197 1 188,392 211,425 -23,033 27,211 -347 6,616 801 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—Ma r 16,819 22,903 -6,083 3,813 392 -155 52 4,307 690 r200 *•2,666 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 Mar.......... 20,134 27,986 -7,852 9,949 5 -1,216 -79 11,249 3,115 285 3 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s l T a o n a a d x n d t O a e r p t i h 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 G In o v v e t, s t a m cc e o n u ts n t o s f 1 S n L p o e e te c s i s s a : 2 l E T q o u t a a l l s: s c p o G o N r n o p o s v s w o t .— . r - e d accounts Special Other private5 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—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 6 475,344 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 1,571 3,066 485,364 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 75,964 Mar.. . 4,269 2,140 220 6,629 509,659 11,042 115,596 24,807 380,298 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

MAY 1975 □ 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: 1971........................... 188,39276,490 24,262 14,52286,23030,320 3,535 39,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 1972........................... 208,64983.200 25.679 14,14394,73734,926 2,76044,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 1973........................... 232,22598,093 27,01721,866 103,24639,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 ........................... 264,932 112,064 2830,81223,952 118,952411,977444 3,125 62,886 3,008 6,837 4,051 76,78016,844 3,334 5,035 5,368 Half year: 1973—Jan.-June... 126,16452,037 221,23321,179 52,09423,730 1,43430,013 2,206 3,616 1,841 37,657 8,016 1,637 2,584 1,861 July-Dee.. .. 124,25652,964 6,207 99958,172 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 1974—Jan.-June... 140,67959,103 2824,60522,953 60,78225,156 1,631 32,919 2,808 3,862 2,08241,672 7,878 1,701 2,521 2,601 July-Dee___ 139,80761,377 7,099 1,01667,460 18,247 2,01634,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,341 Month: 1974—Mar.r........... 16,819 9,664 2 2,186 8,631 3,221 5,887 338 5,059 228 96 338 5,721 1 ,211 277 465 376 Apr................ 29,657 9,946 1311,118 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 5 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 4,077 46214,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 July............... 20,939 10,227 957 378 10,806 1,796 310 5,005 418 358 5,781 1,517 325 418 607 Aug............... 23,620 10,223 491 229 10,485 1,084 256 7,813 1,363 368 9,544 1,415 355 453 540 Sept............... 28,377 9,754 4,323 13013,947 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 14 89 356 5,441 1,489 307 341 301 1975—Jan................. 25,020 10,252 1 5,366 13215,487 1,745 557 4,802 223 245 402 5,673 1,351 307 385 629 Feb................ 19,975 10,957 7 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 Mar............... 20,134 9,617 8 2,661 8,152 4,134 7,228 649 6,268 208 21 373 6,870 1 ,160 295 356 741 Budget outlays5 Gen­ Nat­ Educa­ Gen­ Rev­ eral ural Com- tion, eral enue Undis- Na­ sci­ Agri­ re­ Com­ mun. man­ Health Govt., shar. trib. Period Total tional Intl. ence, cul­ sources, merce and power, and Vet­ Inter­ law and off­ de­ affairs space, ture envir., and region. and wel­ erans est en­ fiscal setting fense and and transp. devel­ social fare force., assist­ re­ tech. energy opment serv. and ance ceipts6 justice Fiscal year: 1972'................... 231,876 77,356 3,723 4,299 5,279 5,019 10,601 4,699 11,696 81,382 10,730 20,582 4,116 531 -8,137 1973 r................... 246,526 75,072 2,956 4,169 4,855 5,461 9,938 5,869 11,874 91,790 12,013 22,813 4,813 7 7,222 -12,318 I974r................... 268,392 78,569 3,593 4,154 2,230 6,390 13,100 4,910 11,600 106,505 13,386 28,072 5,789 6,746 -16,651 1975 ................. 313,446 85,276 4,853 4,183 1,773 9,412 11,796 4,887 14,714 133,188 15,466 31,331 5,672 7,033 -16,839 19768 ................... 349,372 94,027 6,294 4,581 1,816 10,028 13,723 5,920 14,623 146,774 15,592 34,419 6,468 7,249 -20,193 Month: 1975—Feb........... 26,200 7,528 382 350 156 468 666 119 1,024 11,174 1,933 2,618 467 -826 Mar.......... 27,986 7,435 503 379 347 723 1,415 19 1,209 12,154 1,811 2,656 568 3 -1,236 1 Collections of these receipts, totaling $2,427 million for fiscal year 6 Consists of interest received by trust funds, rents and royalties on the 1973, were included as part of nonwithheld income taxes prior to Feb. Outer Continental Shelf, and Govt, contributions for employee retirement. 1974. 7 Contains retroactive payments of $2,617 million for fiscal 1972. 2 Old-age, disability, and hospital insurance, and Railroad Retirement 8 Estimates presented in Budget of the U.S. Government, Fiscal Year accounts. 1976. Breakdowns do not add to totals because special allowances for 3 Supplementary medical insurance premiums and Federal employee contingencies, civilian agency pay raises, and energy tax equalization pay­ retirement contributions. ments totaling $700 million for fiscal 1975 and $8,050 million for fiscal 4 Deposits of earnings by F. R. Banks and other miscellaneous receipts. 1976 are not included. 5 Budget outlays have been revised to reflect the new functional classi­ fication of outlays presented in the 1976 Budget. For a description of these Note.—Half years may not add to fiscal year totals due to revisions in functions, see Budget of the U.S. Government, Fiscal Year 1976, pp. series that are not yet available on a monthly basis. 64-65. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 U.S. GOVERNMENT SECURITIES o MAY 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) Total End of period p d g u e r b b o l t s i s c i Total Total Bills Ma C c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n l r n e d t­ ­ s Total N 3 on F i m s o s a u r r e e k i s g e t n 4 a bl S e b a o a v n n in d d g s s i S ss p u e e c s i a 5 l 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—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 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 Apr. 516.7 399.8 307.2 127.0 145.0 35.3 2.3 90.3 23.6 65.2 116.0 1 Includes non-interest-bearing debt (of which $615 million on April 30, 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 Monthly Statement of the Public Debt of the United ment bonds, and Treasury deposit funds. States, published by U.S. Treasury. See also second paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d io o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n 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 c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t O i m o n r t v i s h s e c e s 2 . r ­ funds bonds securities 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—Mar................. 474.5 131.2 79.5 263.8 59.5 2.8 6.1 11.7 30.4 61.1 17.3 54.9 20.0 471.9 131.1 80.0 260.7 56.8 2.7 5.9 10.5 30.1 61.4 17.8 55.9 19.7 May............... 474.7 133.9 81.4 259.4 54.8 2.6 5.8 11.2 29.2 61.7 18.3 57.3 18.5 June............... 475.1 138.2 80.5 256.4 53.2 2.6 5.9 10.8 28.3 61.9 18.8 57.7 17.3 July................. 475.3 137.5 78.1 259.7 53.9 2.6 5.7 11.3 28.8 62.2 19.4 56.9 18.8 Aug................. 481.8 141.6 81.1 259.0 53.0 2.6 5.7 11.0 29.2 62.3 20.3 56.0 19.0 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 m .3 '30.0 63.7 r21.6 61.5 r22.3 Feb.?.............. 499.7 139.8 81.1 278.9 56.9 2.7 6.2 11.4 30.5 64.0 21.3 64.6 21.3 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate 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

MAY 1975 □ U.S. GOVERNMENT SECURITIES A 35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 ea -2 rs 0 20 O y v e e a r r s 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—Feb. 28............................................................. 289,827 154,782 122,995 31,787 85,181 27,494 15,508 6,863 Mar. 31............................................................. 299,989 158,046 123,972 34,074 90,362 29,255 15,476 6,850 U.S. Govt, agencies 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—Feb. 28..................................................... 20,888 2,481 512 1,969 7,957 3,980 4,802 1,667 Mar. 31..................................................... 20,841 2,519 511 2,008 7,871 3,998 4,802 1,651 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—Feb. 28..................................................... 81,086 46,956 35,909 11,047 21,377 10,326 1,476 950 Mar. 31..................................................... 81,418 47,019 36,087 10,932 21 ,288 10,485 1 ,507 1,119 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—Feb. 28..................................................... 187,853 105,345 86,574 18,771 55,847 13,188 9,230 4,246 Mar. 31..................................................... 197,730 108,508 87,374 21,134 61,203 14,772 9,167 4,080 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—Feb. 28............................................ 43,756 14,487 5,978 8,509 23,735 4,502 736 296 Mar. 31............................................ 48,840 16,217 6,976 9,241 26,503 5,126 722 272 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—Feb. 28............................................ 1,543 330 128 202 660 207 199 147 Mar. 31............................................ 1,751 385 152 233 743 285 195 143 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—Feb. 28............................................ 4,824 652 355 297 1,296 1,214 1,340 321 Mar. 31............................................ 5,119 720 405 315 1,357 1,357 1,336 348 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—Feb. 28............................................ 4,407 2,649 1,812 837 1,519 169 25 44 Mar. 31............................................ 4,911 2,777 2,011 766 1,805 264 23 41 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—Feb. 28............................................ 1,701 419 148 271 861 238 166 18 Mar. 31............................................ 1,969 511 240 271 995 278 166 19 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—Feb. 28............................................ 9,015 5,417 4,747 670 1,756 609 917 316 Mar. 31............................................ 8,189 4,793 4,078 715 1,590 545 918 343 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—Feb. 28............................................ 122,605 81,390 73,405 7,985 26,018 6,249 5,846 3,102 Mar. 31............................................ 126,952 83,105 73,512 9,593 28,210 6,918 5,806 2,914 Note.—Direct public issues only. Based on Treasury Survey of banks, and 733 insurance companies combined, each about 90 per cent; Ownership. (2) 461 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) 5,564 commercial banks, 475 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES □ MAY 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—Mar................................. 3,697 2,814 450 369 64 744 892 1,071 991 733 Apr.................................. 3,338 2,682 438 173 45 614 836 951 937 710 May................................ 3,542 2,645 693 133 72 711 905 991 936 861 June................................ 3,084 2,549 385 110 41 693 759 877 755 978 July................................. 2,566 2,114 348 66 38 490 685 681 710 1,044 Aug................................. 3,097 2,407 389 238 64 554 876 789 878 856 Sept................................. 4,114 3,327 472 265 50 683 1,351 1,022 1,058 1,227 Oct.................................. 3,543 2,802 498 193 50 607 1,087 928 920 1,150 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 r711 r185 698 2,044 1,511 1,518 1,233 Mar................................. 4,464 2,812 993 462 197 670 1,183 1,196 1,415 928 Week ending— 1975—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 *•936 19......................... 4,271 2,443 1,127 636 65 622 1,025 1,204 1,419 *•846 26......................... r4,854 2,835 1,085 r452 480 r685 *•1,470 1,133 *•1,566 1,130 Apr. 2......................... 4,541 2,988 1,092 265 196 560 1,050 1,188 1,743 752 9......................... 6,147 4,313 1,273 402 159 851 1,908 1,424 1,965 1,219 16......................... 5,694 4,394 959 235 107 893 1,507 1,459 1,835 838 23......................... 4,876 3,127 1,270 339 140 609 1,308 1,134 1,824 909 30......................... 4,170 3,100 788 162 120 550 1,109 941 1,570 715 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 th ar in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i y . ­ Period sou A r l c l es Y N C o e it w r y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1974—Mar.................. 2,587 2,149 50 287 102 1,045 1974—Mar............. 3,817 1,196 952 485 1,185 Apr.................. 1,536 1,577 -121 62 17 719 2,449 600 728 287 833 May................. 495 421 -33 66 41 791 May............ 1,637 26 486 213 913 June................. 594 447 52 78 16 1,226 June............ 2,477 241 884 268 1,083 July................. 263 219 -50 90 4 935 July............. 1,710 6 596 216 892 Aug................. 2,487 1,819 228 356 84 1,073 Aug............. 4,138 988 1,248 548 1,354 Sept................. 3,060 2,317 334 340 69 1,216 Sept............. 4,709 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 Nov............. 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................... >•4,634 2,689 >1,236 600 113 1,578 6,185 1,455 1,277 864 2,590 Feb.................. r5,588 *•3,658 1,180 536 213 1,469 Feb............. 6,295 1,672 1,077 714 2,832 Mar................. 5,737 3,435 1,486 618 198 1,444 Mar............ 6,881 1,879 1,650 838 2,513 Week ending— Week ending— 1975—Feb. 5.......... 5,104 3,106 1,044 673 281 1,497 1975—Feb. 5 c.. 5,605 1,351 821 707 2,727 12 5,590 3,902 922 539 227 1,411 12*.. 6,204 1,738 1,080 761 2,626 19.......... 5,482 3,958 775 553 195 1,574 19 c.. 6,338 1,632 1,045 713 2,950 26 , , 6,061 3,619 1,775 501 167 1,617 26c.. 6,784 1,865 1,295 728 2,897 Mar. 5.......... 5,458 3,438 1,434 435 151 1,479 Mar. 5... 6,784 1,826 1,147 709 3,102 12......... 5,520 3,598 1,271 497 154 1,426 12... 7,097 1,968 1,741 954 2,433 19.......... 6,063 3,438 1,518 940 167 1,419 19... 7,148 2,018 1,885 828 2,417 26.......... 5,876 3,306 1,709 576 285 1,487 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

MAY 1975 □ FEDERALLY SPONSORED CREDIT AGENC A ING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, MARCH 31 Cou­ Amount Cou­ Amount morn pon (millions Agency, and date of issue pon (millions Agency, and date of issue dllioi of dollars) and maturity rate of dollars) and maturity iolla Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 7.15 700 Debentures: 10/1/74 -4/1/75.. . 463 8.05 265 4/12/71 -6/10/75......... 5.25 500 11/4/74- 5/1/75... 683 6.80 300 10/13/70 - 9/10/75... 7.50 350 12/2/74-6/2/75.. , 542 7.95 300 3/12/73 -9/10/75......... 6.80 650 1/2/75 -7/1/75. 485 7.88 500 3/10/72 - 12/10/75... 5.70 500 2/3/75 - 8/4/75 474 7.15 400 9/10/73 - 12/10/75.... 8.25 300 3/3/75-9/2/75......... 392 6.50 350 3/11/71 - 3/10/76......... 5.65 500 10/1/73 -4/4/77... 200 7.05 600 6/12/73 -3/10/76......... 7.13 400 12/2/74- 10/1/79.. 201 9.10 700 6/10/71 -6/10/76......... 6.70 250 8.70 400 2/10/72 - 6/10/76......... 5.85 450 7.38 300 9/10/74-6/10/76......... 10.00 700 Federal intermediate 8.75 300 11/10/71 - 9/10/76.... 6.13 300 credit banks 9.20 600 6/12/72-9/10/76......... 5.85 500 Bonds: 7.20 600 12/10/74 - 9/10/76.... 7.50 200 7/1/74-4/1/75......... 811 7.45 300 7/12/71 - 12/10/76.... 7.45 300 8/1/74-5/1/75......... 784 7.80 500 12/11/72- 12/10/76... 6.25 500 9/3/74 - 6/2/75......... 714 9.55 700 6/10/74-12/10/76. ... 8.45 600 10/1/74-7/1/75.... 769 8.60 600 2/13/62 - 2/10/77.... 4.50 198 1/3/72 -7/1/75......... 302 9.55 500 9/11/72 - 3/10/77......... 6.30 500 11/4/74-8/4/75. ... 743 7.20 500 3/11/74 - 3/10/77......... 7.05 400 12/2/74-9/2/75.... 783 .05 500 12/10/70 - 6/10/77. . . 6.38 250 1/2/75 - 10/1/75 ___ 513 8.70 500 5/10/71 -6/10/77......... 6.50 150 2/3/75 - 11/3/75 ___ 754 6.95 200 * 12/10/73 -6/10/77.... 7.20 500 3/3/75-12/1/75......... 897 7.15 300 9/10/71 -9/12/77......... 6.88 300 3/1/73 - 1/5/76......... 261 8.80 600 9/10/73 -9/12/77......... 7.85 400 7/2/73 - 1/3/77......... 236 6.75 300 7/10/73 - 12/12/77.... 7.25 500 7/1/74 - 4/4/77......... 321 7.45 300 10/1/73 - 12/12/77.... 7.55 500 1/2/74 - 1/3/78......... 406 9.15 700 6/10/74-3/10/78......... 8.45 650 1/2/75 -1/2/79......... 410 9.38 400 3/10/75-3/10/78........... 6.70 350 7.60 500 6/12/73 - 6/12/78......... 7.15 600 9.10 500 3/11/74 -9/11/78......... 7.15 550 Federal land banks 8.65 600 10/12/71 - 12/11/78.. 6.75 300 Bonds: 9.45 600 7/10/74- 12/11/78.... 8.95 450 4/20/65 - 4/21/75.. 4.38 200 8.65 500 12/10/73 -3/12/79.... 7.25 500 7/20/73 -4/21/75... 7.65 300 .75 400 9/10/73 -6/11/79......... 7.85 300 2/15/72-7/21/75... 5.70 425 9.50 500 9/10/74 -6/11/79......... 9.80 600 4/22/74-7/21/75... 8.30 300 8.15 500 6/12/72-9/10/79......... 6.40 300 7/20/71 - 10/20/75.. 7.20 300 7.50 500 12/10/74 -9/10/79.... 7.80 700 10/23/73 - 10/20/75. 7.40 362 7.75 350 12/10/71 - 12/10/79.. 6.55 350 4/20/72 - 1/20/76... 6.25 300 7.05 300 2/10/72 - 3/10/80......... 6.88 250 7/22/74 - 1/20/76... 9.20 650 7.80 200 3/10/75-3/10/80........... 7.25 750 2/21/66 - 2/24/76.. 5.00 123 6.60 200 6/10/74-6/10/80......... 8.50 600 1/22/73 - 4/20/76... 6.25 373 8.65 400 2/16/73 - 7/31/80........ 5.19 1 4/22/74 - 4/20/76... 8.25 400 7.30 183 2/16/73 - 7/31/80........ 3.18 9 7/20/66 - 7/20/76.. 5.38 150 7.38 400 10/1/73 - 9/10/80......... 7.50 400 1/21/74 - 7/20/76... 7.05 360 8.75 300 1/16/73 - 10/30/80.... 4.46 5 4/23/73 - 10/20/76.. 7.15 450 7.38 400 12/11/72 - 12/10/80... 6.60 300 4/22/74 - 4/20/77... 8.25 565 6/29/72 - 1/29/81......... 6.15 156 7/20/73 -7/20/77... 7.50 550 3/12/73 - 3/10/81......... 7.05 350 10/20/71 - 10/20/77. 6.35 300 4/18/73 -4/10/81......... 6.59 26 10/21/74-1/23/78.. 8.70 546 3/21/73 - 5/1/81........... 4.50 18 2/20/63 - 2/20/73-78 4.13 148 7.05 400 3/21/73 - 5/1/81........... 5.77 2 5/2/66 - 4/20/78... 5.13 150 6.15 350 1/21/71 - 6/10/81.... 7.25 250 1/20/75 -4/20/78. .. 7.60 713 8.60 140 9/10/71 -9/10/81......... 7.25 250 7/20/72 - 7/20/78.. 6.40 269 7.75 150 9/10/74-9/10/81......... 9.70 300 7/22/74-7/20/78... 9.15 350 7.15 150 3/11/74-12/10/81.... 7.30 250 10/23/73 - 10/19/78. 7.35 550 7/10/74-3/10/82......... 8.88 300 2/20/67 - 1/22/79... 5.00 285 8.20 300 6/28/72-5/1/82........... 5.84 58 1/21/74- 1/22/79... 7.10 300 2/10/71 - 6/10/82......... 6.65 250 9/15/72 -4/23/79... 6.85 235 9/11/72 - 9/10/82........ 6.80 200 2/20/74 - 7/23/79. .. 7.15 389 12/10/73 - 12/10/82... 7.35 300 10/23/72 - 10/23/79. 6.80 400 3/11/71 - 6/10/83......... 6.75 200 1/22/73 - 1/21/80... 6.70 300 2,835 6/12/73 -6/10/83......... 7.30 300 7/20/73 -7/21/80... 7.50 250 11/10/71 -9/12/83.... 6.75 250 10/21/74- 10/20/80. 8.70 400 8.00 200 4/12/71 -6/11/84......... 6.25 200 2/23/71 - 4/20/81... 6.70 224 4.38 248 12/10/74 -9/10/84.. .. 7.95 300 7/22/74 -7/20/81... 9.10 265 7.40 250 12/10/71 - 12/10/84.. 6.90 250 1/20/75 -1/20/82. .. 7.80 400 3/10/75-3/11/85........... 7.65 500 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 □ MAY 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—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 9,031 8,484 14,326 13,021 Mar.. 18,164 6,415 154 18,453 3,025 2,677 29,870 28,420 3,741 3,440 9,303 8,703 14,641 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 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E 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 h s r e e ­ s r gations auth. 197 1 24,962 15,220 8,681 1,000 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 4,991 9,496 9,165 22,073 4,981 1,689 4,638 1,910 6,741 197 3 23,970 12,257 10,632 1,022 4,212 9,507 10,249 22,408 4,311 1,458 5,654 2,639 8,335 197 4 23,705 13,204 9,961 461 4,659 8,499 10,470 20,210 4,709 767 5,513 1,045 8,176 1974—Mar.. 2,029 1,181 617 227 344 793 887 1,906 366 258 363 241 678 Apr... 2,406 1,708 689 360 862 1,177 2,361 516 9 595 178 1,063 May.. 2.313 1,101 1,203 451 1,097 756 2,237 442 18 711 8 1,058 June.. 2,171 1,075 856 234 580 721 864 2,079 220 62 664 334 799 July. . 1,466 859 600 540 158 761 1,456 314 58 154 930 Aug.. 1,109 576 529 141 400 565 1,067 228 85 257 15 482 Sept.. 1,705 869 832 448 641 611 1,669 251 11 380 21 1,006 Oct... 2,865 1,707 1,153 328 974 1,558 2,738 343 110 236 110 1,939 Nov.. 2,487 1,110 1,374 689 1,005 789 2,403 698 4 866 9 826 Dec... 1,500 761 717 222 558 700 1,475 297 64 424 53 637 1975—Jan. 2,295 1,347 942 372 668 1,256 2,273 710 49 640 155 719 Feb.r. 2.314 1,712 597 877 582 853 2,281 430 206 412 105 1,128 Mar.. 1,967 1,268 698 373 646 950 1,922 410 88 468 35 921 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

MAY 1975 o 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 c al Other 5 Total Govt.2 agency3 (U.S.)4 Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 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 1974r 37,870 31,567 25,337 6,230 2,253 4,050 1974—Jan.«. 3,328 2,898 2,115 783 152 278 Feb... 2,687 2,101 1,683 418 268 318 Mar.. 3,217 2,457 2,020 437 398 362 Apr... 3,066 2,265 1,594 671 355 446 May.. 3,164 2,957 2,350 607 65 142 June.. 2,981 2,455 1,939 516 113 413 July.. 3,260 2,706 2,086 620 228 327 Aug.., 2,668 2,341 2,042 299 107 218 Sept.. 1,629 1,215 897 318 216 289 Oct.r. 4,625 3,793 3,423 370 196 636 Nov.r 3,762 3,352 3,016 336 93 317 Dec.r. 3,483 3,027 2,172 855 152 304 1975—Jan... 5,074 4,498 3,665 833 235 341 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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 1974r 9,883 547 1,865 958 ' 993 22 8,868 3,964 3,716 222 6,252 598 1974—Jan.«. 867 29 136 124 78 1,192 249 142 4 485 27 Feb... 354 36 55 143 2 536 293 372 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. ., 434 44 311 139 5 15 859 288 355 1 491 39 July... 1,051 43 257 93 62 1 318 300 242 53 777 65 Aug..., 601 4 38 62 14 862 216 364 462 44 Sept..., 186 2 46 47 50 384 296 331 18 218 48 Oct.r.. 740 3 102 29 306 1,414 695 439 36 791 70 Nov.r., 1,696 2 124 100 336 739 224 62 31 397 54 Dec.r. 1,435 199 174 23 14 431 194 150 25 823 15 1975—Jan......................................... 1,749 145 60 88 691 507 920 904 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 yeair 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 □ MAY 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 II.................. 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 * Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 1971.......................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972......................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973.......................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1974......................... 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 Month Sales 1 Redemp­ Net Total 2 Cash Other Sales i 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—Mar.. 297 346 -49 44,423 4,406 40,017 1964 3,404 1,875 1,528 29,116 1,329 27,787 Apr.. 262 327 -65 42,679 4,426 38,253 1965 4,359 1,962 2,395 35,220 1,803 33,417 May. 323 320 3 41,015 4,389 36,626 June. 337 276 61 40,040 4,461 35.579 1966 4,671 2,005 2,665 34,829 2,971 31,858 July. 442 352 90 37,669 4,609 33,060 1967 4,670 2,745 1,927 44,701 2,566 42,135 Aug.. 446 339 127 35,106 4,953 30,153 1968 6,820 3,841 2,979 52,677 3,187 49,490 Sept.. 499 292 207 31,985 5,078 26,907 Oct.. 816 311 505 37,115 5,652 31,463 1969 6,717 3,661 3,056 48,291 3,846 44,445 Nov.. 619 335 284 36,366 5,804 30,562 1970 4,624 2,987 1,637 47,618 3,649 43,969 Dec.. 736 411 325 35,777 5,637 30,140 1971 5,145 4,751 >•394'55,045 '3,038 '52,007 1975—Jan.. 1,067 428 639 3,7407 3,889 33,518 1972 4,892 6,563 -1,671 59,831 3,035 56,796 Feb.. 889 470 419 39,330 4,006 35,324 1973 4,358 5,651 -1,261 46,518 4,002 42,516 Mar. 847 623 224 40,449 3,870 36.579 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

MAY 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 t U r p i r b n o u d fi t i t e s s d ­ co c a n a t l i l s p o o u i n w t m a ­ l p­ Quarter P b t 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 l s o p o u n i w t m a ­ l p ­ ances1 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 1974................ 140.7 55.7 85.0 32.7 52.4 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... 131.5 52.0 79.5 33.3 46.2 79.3 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v 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 . , i Other G U o . v S t . . 1 Other taxes 1970................................. 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971................................. 204.9 518.8 55.7 10.7 3.5 208.8 200.3 39.7 313.9 4.9 207.3 12.2 89.5 1972—III....................... 219.2 547.5 57.7 7.8 2.9 224.1 212.2 42.8 328.3 4.7 212.1 12.7 98.8 IV........................ 224.3 563.1 60.5 9.9 3.4 230.5 215.1 43.6 338.8 4.0 221.6 14.1 99.1 1973_I........................... 231,8 579.2 61.2 10.8 3.2 235.7 222.8 45.5 347.4 4.1 222.8 15.7 104.7 II......................... 237.7 596.8 62.3 9.6 2.9 245.6 230.3 46.0 359.1 4.5 232.5 13.9 108.1 Ill....................... 241.9 613.6 62.2 9.5 3.0 254.2 238.2 46.6 371.7 4.4 240.8 15.3 111.2 IV........................ 245.3 631.4 65.2 10.7 3.5 255.8 247.0 49.3 386.1 4.3 252.0 16.6 113.3 1974—I........................... 253.2 653.9 62.8 11.7 3.2 265.6 258.9 51.6 400.7 4.5 256.7 18.7 120.7 II......................... 257.4 673.3 62.2 10.4 3.4 278.7 269.7 48.8 415.8 4.7 268.4 17.4 125.3 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 i Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s t her 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 1974... 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—i................... 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—I................... 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 HI................. 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—I2................. 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 □ MAY 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 1973 1974 1970 1971 1972 IV I II III IV 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 Multifamily i..................................................... 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 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 Multifamily 1................................................. 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 43,188 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 12,171 1*3,1*58 1*3,997 14,729 Government National Mortgage Association 5,222 5,323 5,113 4,029 3,604 3,618 4,052 4,848 1- to 4-family................................................ 2,902 2,770 2,490 1,330 1,189 1,194 1,337 1,600 Multifamily 1................................................. 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............................................................... 437 421 450 650 104 758 812 866 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................................................ 2,111 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 11,071 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 2,412 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 12,973 13,892 1- to 4-family................................................ 452 3,153 5,620 8,745 10,431 11,326 12,454 13,336 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

MAY 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 i in­ 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—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 4,533 1 ,893 2,640 113 31 21 2,070 Mar.. 29,754 19,277 8,304 151 I 639 6,636 i Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms1 Yields (per cent) in insured primary market loans—Yiel< 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 series4 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 1974—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.................. 8.88 1 .44 26.8 76.7 44.4 33.0 9.12 9.05 8.84 Mar.?............. 8.83 1 .55 26.4 75.0 46.2 33.8 9.08 8.90 8.69 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 □ MAY 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1974 1975 Nov. 18 Dec. 2 Dec. 16 Dec. 30 Jan. 13 Jan. 27 Feb. 10 Feb. 24 Mar. 10 Mar. 24 Apr. 7 Apr. 21 Amounts (millions of dollars): Govt.-underwritten loans Offered1.................................... 25.7 52.5 49.6 35.7 25.3 41.4 24.6 36.2 99.2 460.5 551.6 470.9 Accepted.................................. 17.6 23.3 43.3 31.8 21.2 28.6 18.1 23.8 60.1 321.4 277.2 247.3 Conventional loans Offered1................................... 20.6 24.0 20.1 17.2 17.9 11.1 14.8 20.0 34.4 60.7 99.8 79.2 Accepted.................................. 6.8 12.0 18.5 10.1 14.9 10.6 9.1 9.1 21.1 35.8 44.6 51.3 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 9.81 9.61 9.52 9.47 9.37 9.12 8.98 8.87 8.78 8.85 8.98 9.13 Conventional loans................... 9.92 9.80 9.72 9.59 9.50 9.39 9.20 9.04 8.96 9.00 9.13 9.26 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) June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Holder 1973 1973 1973 1974 1974 1974 1974 All holders....................................................... 133.6 133.8 135.0 136.7 137.8 138.6 140.3 FHA.............................................................. 86.4 85.6 85.0 85.0 84.9 84.1 84.1 VA................................................................. 47.2 48.2 50.0 51.7 52.9 54.5 56.2 (Commercial hanks......................................... 11.7 11.7 11.5 11.1 11.0 10.8 9.8 FHA.............................................................. 8.5 8.4 8.2 7.8 7.6 7.4 6.5 VA................................................................. 3.2 3.3 3.3 3.3 3.4 3.4 3.2 Mutual savings banks.................................... 28.7 28.6 28.4 28.2 27.9 27.7 27.3 FHA.............................................................. 15.8 15.7 15.5 15.3 15.1 14.9 14.7 VA................................................................. 12.9 12.9 12.9 12.9 12.8 12.8 12.6 Savings and loan assns................................. FHA.............................................................. | 29.8 } 30.1 } 29.7 j 29.8 } 29.7 29.8 1 29.8 VA................................................................. Life insurance cos........................................... 14.0 13.7 13.6 13.3 13.1 12.9 12.7 FHA.............................................................. 9.5 9.3 9.2 9.0 8.8 8.7 8.6 VA................................................................. 4.5 4.4 r4.5 4.3 4.3 4.2 4.2 Others............................................................... 49.4 50.0 52.1 54.3 56.1 57.4 60.7 FHA.............................................................. VA................................................................. 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 amount Period o N f u l m oa b n e s r ( c m o (d i m l o l m i l o la i n t r s t s e ) o d f ( o th a f m o L d u o o o s a l u a l n a n n r t d s ) s ( C p in o e r t r n a e t c t r r e e e a s n c t t t ) (y M rs a . t /m ur o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C (p a t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 197 0 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 197 1 1,664 3.982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 197 2 2,132 4.986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 197 3 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1973—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 Oct., 57 108.3 1,899 10.29 19/7 74.6 10.6 1.25 11.5 Nov. 47 79.7 1,695 10.37 18/4 74.0 10.7 1.26 11.6 Dec. 37 140.0 3,784 10.28 19/10 74.8 11.0 1.33 11.3 See Note on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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—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 Mar........... 184,253 151,477 50,452 49,391 7,925 43,709 32,776 12,542 6,452 2,033 11,749 1 Holdings of financial institutions; holdings of retail outlets are in- Note.—Consumer credit estimates cover loans to individuals for eluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Conheating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit '------------ ---------—> ^ .. .....✓ 1965....................... 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 1966....................... 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 1967....................... 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 1968....................... 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 1969....................... 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 1970....................... 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 1971....................... 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 1972....................... 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 1973....................... 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1974...................... 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—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 Mar........... 81,201 70,183 17,754 11,377 7,459 7,890 6,272 4,318 2,403 12,710 11,018 See Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT □ MAY 1975 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other consumer End of period Auto­ goods paper Home Per­ Mis­ Auto­ Other Total mobile improve­ sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders1 dealers outlets Mobile Other loans homes 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—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 Mar.............. 37,910 12,371 3,519 4,427 903 16,690 25,506 22,227 3,279 17,878 276 17,602 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—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.. *•11.61 11.66 13.28 13.60 *■17.12 13.08 17.27 13.60 19.58 21.24 Feb. 11.51 12.14 13.20 '13.44 17.24 13.07 17.39 Mar. 11.46 11.66 13.07 13.40 17.15 13.07 17.52 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

MAY 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 1 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-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 Mar.................. 12,797 3,419 5,535 339 3,504 5,357 2,872 2,044 2,524 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—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 Mar.................. 13,234 3,772 5,708 357 3,397 5,924 2,971 1,782 2,557 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—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 79 440 571 310 439 192 677 231 235 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 Mar................. -437 -353 -173 -18 107 -567 -99 262 -33 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. □ MAY 1975 MARKET GROUPINGS (1967 = 100) 1 p 9 ro 67 ­ 1974 1974 1975 Grouping p ti o o r n ­ av a e g r e ­ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar?. Apr.* Total index...................................... 100.0 124.8 124.9 125.7 125.8 125.5 125.2 125.6 124.8 121.7 117.4 113.7 111.2 109.8 109.4 Products, total..................................... 62.21 123.1 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.7 115.4 113.6 112.6 112.8 Final products.................................. 48.95 121.7 120.8 122.4 122.6 122. 122.1 122.6 122.3 120.9 118.2 114.9 113.1 112.4 112.5 Consumer goods......................... 28.53 128.8 128.5 129.7 130.2 130.0 129.8 128.8 128.2 126.3 123.4 120.1 118.8 118.4 119.6 Equipment................................... 20.42 111.7 110.1 112.2 112.0 113.0 111.4 113.8 114.0 113.2 110.7 107.8 105.1 104.0 102.9 Intermediate products................... 13.26 128.3 129.4 129.2 128.9 127.8 128.6 127.6 125.3 123.0 120.5 117.6 116.0 113.9 113.8 Materials.............................................. 37.79 127.4 128.7 129.1 128.8 128.0 128.5 129.3 128.1 122.1 114.8 110.5 107.4 105.4 103.9 Consumer goods Durable consumer goods.................... 7.86 127.9 130.9 132.8 133.5 131.6 131. 129.1 126.5 119.7 110.1 104.0 101.4 103.8 106.4 Automotive products..................... 2.84 110.0 113.8 116.1 117.3 113.5 114.9 111.6 114.7 102.1 87.5 80.3 78. 88.4 94.3 Autos............................................ 1.87 94.9 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91.0 69.8 62.6 58.9 73.1 82.4 Auto parts and allied goods... .97 139.0 144.7 146.5 151.3 136.9 137.6 134.5 126.9 123.6 121.5 114.4 117.2 117.8 117.3 Home goods......................................... 5.02 138.0 140.6 142.3 142.7 141.8 141.2 139.0 133.2 129.7 123.0 117.5 114.3 112.5 113.2 Appliances, TV, and radios......... 1.41 132.0 135.2 137.7 141.2 139.3 139.1 133.2 120.9 115.3 102.5 94.4 89.1 85.4 Appliances and A/C............... .92 148.8 148.6 152.6 155.3 151.7 156.2 150.2 139.5 131.9 119.8 108.0 103.1 99.6 TV and home audio............... .49 Carpeting and furniture...........;., 1.08 153.5 158.2 157.4 157.2 155.3 157.1 155.4 151.8 144.7 143.8 135.1 134.7 133.0 Misc. home goods.........................., 2.53 134.7 136.0 138.3 137.4 137.3 135.8 135.3 132.2 131.4 125.5 123.0 119.8 119.0 119.1 Nondurable consumer goods.............. 20.67 129.2 127.6 128.5 129.0 129.4 129.1 128.7 128.9 128.8 128.4 126.3 125.4 124.0 124.6 Clothing... *.................................... 4.32 109.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 102.0 95.0 95.1 Consumer staples............................, 16.34 134.5 133.2 134.2 134.3 134.9 135.1 134.8 135.4 135.6 135.5 134.5 133.4 132! 3 132.9 Consumer foods and tobacco.. 8.37 125.4 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.3 123.3 124.0 122.0 123.4 Nonfood staples.......................... 7.98 144.0 143.1 144.3 144.4 144.7 146.5 145.7 146.1 145.3 146.2 146.4 143.4 143.4 143.0 Consumer chemical products, 2.64 158.4 159.7 157.5 156. 154.6 159.0 157.7 159.8 155.2 159.1 160.6 155.0 155.4 Consumer paper products..., 1.91 125.2 119.4 124.7 123.9 124.4 129.5 130.9 128.5 127.4 126.7 122.0 121.9 121.7 Consumer fuel and lighting.. 3.43 143.8 143.7 145.1 146.0 148.4 146.2 144.6 145.4 147.9 147.3 149.2 146.2 146.2 Residential utilities.............. 2.25 153.7 151.6 153.2 155.3 157.8 155.4 156.2 155.5 159.3 159.0 159.9 157.8 Equipment Business equipment.............................. 12.74 129.4 127.9 130.2 130.2 131.3 128.8 132.3 132.0 131.0 127.1 122.3 119.3 117.5 115.9 Industrial equipment.................I.. 6.77 128.7 127.6 129.6 129.0 130.3 129.6 132.0 130.9 129.3 126.7 122.9 120.6 118.9 117.4 Building and mining equip........ 1.45 136.0 133.5 135.0 137.4 136.2 136.5 139.8 141.2 140.1 137.4 138.4 137.1 136.9 135.1 Manufacturing equipment 3.85 121.7 122.1 124.1 121.9 124.9 123.1 124.4 122.5 119.4 116.5 111. 110.0 107.9 105.7 Power equipment......................... 1.47 139.9 136.6 138.4 139.0 138.4 139.6 144.2 142.8 144.5 142.6 136.6 131.4 130.2 130.0 Commercial, transit, farm equip.. 5.97 130.3 128.2 130.9 131.5 132.5 127.6 132.8 133.2 132.9 127.6 121.6 117.9 116.0 114.1 Commercial equipment.............. 3.30 141.1 140.4 141.5 142.7 143.5 134.0 143.3 144.1 143.1 139.3 135.2 130.2 128.4 126.0 Transit equipment....................... 2.00 109.6 106.7 110.2 110.4 111.4 109.3 111.8 111.2 109.8 102.9 91. 91.5 89.5 88.0 Farm equipment.......................... .67 138.7 131.2 140.2 140.6 141.4 150.5 144.1 145.4 151.9 143.7 143.8 135.8 133.5 Defense and space equipment............ 7.68 82.3 80.6 82.2 81.7 82.6 82.7 83.1 84.1 83.7 83.4 83.8 81.9 81.6 81.4 Military products............................. 5.15 81.2 79.9 81.2 79.7 81.4 81.5 82.3 82.5 81.8 81.3 81.5 79.9 19 A 79.3 Intermediate products Construction products....................... 5.93 129.6 130. 130.8 129.6 128.2 128.0 127.4 123.5 121 .3 118.3 115.7 113.1 111.6 111.4 Misc. intermediate products............., 7.34 127.3 128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 122.5 119.2 118.3 115.8 Materials Durable goods materials..................... 20.91 127.3 127.3 128.3 127.5 125. 128.1 129.2 129.3 123.5 114.2 110.3 107.4 104.9 102.4 Consumer durable parts............... 4.75 112.1 112.5 114.7 114.1 117.2 117.5 117.2 115.2 104.1 91.7 83.7 82.0 82.4 83.1 Equipment parts............................. 5.41 123.8 120.1 122.5 122.1 120.6 125.8 125.0 124.0 122.2 118.3 116.9 112.6 109.4 107.6 Durable materials nec................... 10.75 135.9 137.5 137.2 136.2 132.3 133.9 136.6 138.3 132.7 122.9 1H 116.2 112.6 108.4 Nondurable goods materials.............. 13.99 128.5 131.9 130.9 131.3 131.1 130.4 129.3 126.8 122.1 116.2 109.2 105.1 103.3 103.0 Textile, paper, and chem. mat... 8.58 139.8 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 122.9 112.9 108.1 105.2 105.0 Nondurable materials n.e.c.......... 5.41 110.6 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.7 103.3 100.9 101.3 101.0 Fuel and power, industrial............... 2.89 122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.0 117. 118.6 117. 117.7 Supplementary groups Home goods and clothing................ 9.34 124.6 124.6 126.0 127.1 126.4 125.0 123.8 120.0 117.4 113.2 107.1 105.4 103.2 103.9 Containers............................................ 1.82 139.4 147.0 141.5 141.6 142.1 140.4 136.7 131.5 127.6 120.3 126.1 119 124.2 Gross value of products in market structure (In billions of 1963 dollars) Products, total................................ 286.3 445.4 449.5 449.7 448.1 446.9 447.1 445.7 439.0 426.7 416.4 410.4 407.8 410.1 Final products.......................... 221.4 342.9 347.2 347.7 346.6 345.0 346.1 346.5 341.3 331.0 322.3 317.5 316.6 319.2 Consumer goods.................. 156.3 233.8 235.9 236.6 235.0 235.1 233.1 233.7 228.9 222.3 216.4 213.7 214.3 218.0 Equipment............................. 65.3 109.0 111.2 111.2 111.6 109.9 112.8 112.7 112.4 108.8 105.9 103.7 102.3 101.3 Intermediate products............. 64.9 102.5 102.2 102.0 101.2 102.1 101.0 99.4 97.4 95.8 94.3 92.9 91.2 90.9 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 o INDUSTRIAL PRODUCTION: S.A. A 49 INDUSTRY GROUPINGS (1967 = 100) 1967 pro­ 1974 1974 1975 Grouping p ti o o r n ­ a a v g e e r­ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.^ Apr.® Manufacturing.................................... 88.55 124.4 124.8 125.7 125.6 125.2 125.2 125.5 124.6 120.9 116.1 111.7 109.3 107.8 107.7 Durable.......................................... 52.33 120.7 120.7 122.1 122.1 121.6 121.6 122.1 121.6 117.9 112.2 108.2 104.8 103.0 102.8 Nondurable.................................... 36.22 129.7 130.4 130.9 130.8 130.8 130.4 130.5 128.9 125.4 121.9 117.0 115.8 114.8 114.8 Mining and utilities......................... 11.45 127.3 127.8 128.0 128.1 128.9 127.4 128.7 128.5 125.9 125.7 127.0 126 125.8 125.5 Mining............................................ 6.37 109.3 111.3 111.0 110.2 110.2 107.3 109.2 110.5 105.0 104.4 107.0 107.0 106.4 105.9 Utilities........................................... 5.08 149.9 148.7 149.2 150.6 152.4 152.6 153.1 151.2 152.3 152.6 153.0 150.5 150.2 150.4 Durable manufactures Primary and fabricated metals.... 12.55 127.5 127.5 128.1 128.4 126.9 126.5 127.2 127.6 124.4 116.0 112.4 107.3 104.2 102.0 Primary metals.................................... 6.61 124.1 124.0 124.6 124.7 123.2 121.9 123.0 126.0 121.0 108.6 107.2 102.0 97.9 94.0 Iron and steel, subtotal........... 4.23 119.9 116.4 118.0 118.5 119.9 120.7 119.1 123.9 117.7 107.9 110.6 105.0 102.1 97.5 Fabricated metal products......... 5.94 131.4 131.3 131.9 132.5 131.1 131.5 132.0 129.6 128.2 124.1 118.2 113.2 111.2 111.3 Machinery and allied goods............. 32.44 116.3 115.5 117.5 117.7 117.3 117. 118.8 118.4 114.9 109.6 105.4 102.5 101.1 101.7 Machinery...................................... 17.39 128.1 128.2 129.7 130.4 129.9 130.5 132.5 131.1 128.9 124.8 119.6 115.9 113.3 112.3 Nonelectrical machinery......... 9.17 133.8 130.7 131.9 131.7 131.1 136.4 137.8 137.4 135.1 132.5 126.7 123.1 120.1 118.5 Electrical machinery................ 8.22 125.2 125.3 127.4 129.0 128.4 123.7 126.4 124.0 121.7 116.3 111.5 107.9 105.5 105.4 Transportation equipment......... 9.29 96.9 97.8 100.6 99.4 98.7 99.9 100.4 102.1 93.7 83.6 78.9 77.1 77.6 81 .9 Motor vehicles and parts.... 4.56 113.2 116.4 119.6 116.9 117.3 117 118.6 123.0 107.1 86.4 78.2 77.6 78.4 86.3 Aerospace and misc. trans. eq... 4.73 81.1 80.0 82.4 82.6 80.9 82.6 82.8 81.9 80.9 80.9 79.5 76.6 72.0 73.0 Instruments.......................................... 2.07 143.9 143 146.1 147.5 146.7 146.7 144.9 142.0 142.3 139.5 139.1 134.7 132.8 133.0 Ordnance, private and Govt............ 3.69 86.1 84.3 86.1 86.4 87.2 87.1 87.5 87.2 86.6 86.6 86.2 85.9 85.4 85.0 Lumber, clay, and glass......................... 4.44 123.6 128.9 128.0 126.4 125.5 123.4 120.6 117.8 113.7 111.0 109.6 105.5 103.8 105.1 Lumber and products........................ 1.65 120.1 126 126. 125.6 121.6 121.5 116.6 109.3 105.2 101.3 99.9 99.4 97.5 Clay, glass, and stone products.... 2.79 125.7 130.3 128.7 126.9 127.7 124.6 123.0 122.9 118. 116.9 115.3 109.2 107.6 Furniture and miscellaneous.................. 2.90 136.1 136. 138.9 138.5 139.7 140.1 138.8 136.7 129.0 128.4 120.0 118.8 117.3 117.9 Furniture and fixtures....................... 1.38 126.9 128.8 129.7 131.1 131.6 130.5 129.4 125.5 120.5 120.4 110.6 109.6 108.4 Miscellaneous manufactures............ 1.52 144.4 144.1 147.3 145.3 147.1 148.8 147.5 146.9 136.9 135.7 128.9 127.0 125.5 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 108.9 109.3 109.8 108.5 108.1 107.4 106.5 105.1 101.9 96.3 88.9 89.9 91.2 Textile mill products......................... 2.69 122.7 123.4 124.0 125.1 125.3 124.3 121.9 119.1 112.8 102.9 95.6 94.0 95.0 Apparel products................................ 3.33 105.4 105. 105.0 102.1 102.7 102.5 102.5 102.8 100.1 98.0 94.0 90.9 Leather and products........................ 77.3 79.5 83.9 81.6 75.7 73.4 74.2 70.6 74.7 69.7 66.1 73.9 73.3 Paper and printing.................................. 7.92 121.0 121.2 121.3 122.3 122.4 121.0 122. 7 120.8 115.7 112.3 108.2 106.6 105.7 103.9 Paper and products............................ 3.18 134.0 135.4 135.1 136.7 136.1 132.2 135.3 133.9 124.3 116.1 114.3 109.5 108.3 Printing and publishing..................... 4.74 112.3 111.7 111.9 112.7 113.4 113.4 114.4 111.9 110.0 109.8 104.1 104.7 104.0 ioi'.i Chemicals, petroleum, and rubber.... 11.92 151.7 153.5 153.0 153.7 153.9 154.4 154.7 152.4 146.5 141.6 136.5 132.5 131.3 131.1 Chemicals and products................... 7.86 154.3 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.1 139.0 134.5 133.5 132.9 Petroleum products............................ 1.80 124.0 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 125.8 126.8 124.1 122.4 122.0 Rubber and plastics products.......... 2.26 164.4 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 148.9 135.4 131.8 130.9 Foods and tobacco................................... 9.48 124. 124.3 126.5 125.3 124.8 124.8 124.3 123.7 123. 123.5 120.0 121.6 120.6 120.7 Foods.................................................... 8.81 126.2 125.9 127.8 127.1 126.6 126.3 125.7 124.8 125.4 125.7 121.2 122.7 121.5 121.6 Tobacco products............................... .67 106.4 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103.8 96.2 104.7 108.4 Mining Metal, stone, and earth minerals.......... 1.26 117.2 117.5 117.9 112.4 113.5 109.9 115.4 121.3 120.7 117.9 119.1 116.5 113. 110.7 Metal mining....................................... .51 129.2 127.4 128.1 121.1 120.3 110.0 130.5 141.4 136.8 134.7 133.8 131.1 125.2 Stone and earth minerals................. .75 109.1 110.7 111.0 106.4 108.8 109.9 105.0 107.5 109.8 106.4 109.0 106.5 106.1 Coal, oil, and gas.................................... 5.11 107.3 109.8 109.2 109.7 109.4 106.7 107.7 107.8 101.2 101.1 103.9 104.7 104.6 104.8 Coal....................................................... .69 105.1 110.3 112.4 118.3 115.6 99.4 112.1 110.3 67.6 85.3 111.3 116.5 115.1 112.0 Oil and gas extraction....................... 4.42 107.7 109.7 108.8 108.4 108.4 107.9 107.1 107.4 106.4 103.6 102.9 102.9 103.1 103.7 Utilities Electric...................................................... 3.91 159.5 158.3 159.0 160.3 162.7 162.8 162.4 161.2 162.9 163.0 162.5 160.6 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 □ MAY 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) Total i Con­ Equip­ mediate ing Total sumer ment goods 1955. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957....................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958....................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959....................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960....................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963....................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964....................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965....................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966....................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968....................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969....................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970....................... 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 1971....................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 1972........................... 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 1974 124.8 123.1 121.7 128.8 111.7 128.3 127.4 124.4 168.6 118.9 102.1 156.6 147.7 160.1 1974—Mar........... 124.7 122.6 121.0 128.5 110.1 128.2 128.8 124.6 580.5 181.0 118.6 102.9 153.1 168 143.1 151.4 Apr............ 124.9 122.7 120.8 128.5 110.1 129.4 128.7 124.8 1 167.0 118.8 103.0 150.4 169 143.9 152.7 May.......... 125.7 123.8 122.4 129.7 112.2 129.2 129.1 125.7 \ 80.1 188.0 119.0 103.0 156.2 172 145.5 155.0 June.......... 125.8 124.0 122.6 130.2 112.0 128.9 128.8 125.6 1 166.0 119.1 103.2 157.9 170 146.9 155.7 July........... 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 I 177.0 119.2 103.0 159.5 177 148.0 161.7 Aug........... 125.2 123.5 122.1 129.8 111.4 128.6 128.5 125.2 [ 79.4 170.0 119.4 102.6 161 .5 180 149.9 167.4 Sept........... 125.6 123.6 122.6 128.8 113.8 127.6 129.3 125.5 j 187.0 119.7 102.5 162.0 176 151.7 167.2 Oct............ 124.8 122.9 122.3 128.2 114.0 125.3 128.1 124.6 ) 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 J 176.0 118.0 96.3 152.6 171 155.4 171 .5 1975-—Jan............ 113.7 115.4 114.9 120.1 107.8 117.6 110.5 111 .7 135.0 117.3 93.6 148.9 176 156.1 171.8 Feb............ 111 .2 113.6 113.1 118.8 105.1 116.0 107.4 109.3 68.3 135.0 116.5 90.8 143.0 179 157.2 171.3 Mar........... 109.8 112.6 112.4 118.4 104.0 113.9 105.4 107.8 153.0 115.9 90.0 142.8 176 157.8 170.4 Apr........... 109.4 112.8 112.5 119.6 102.9 113.8 103.9 107.7 115.8 89.5 143.8 178 172.1 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. Employment and payrolls: Based on Bureau of Labor Statistics data; 5 Figure is for first quarter 1974. includes data for Alaska and Hawaii beginning with 1959. Note.—All series: Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- 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 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total construction contracts 1......... 99,304 93,076 7,911 8,92910,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 6,574 By type of ownership: Public........................................ 26,563 32,209 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 2,182 Private 1....................................... 72,741 60,867 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 4,393 By type of construction: Residential building 1............... 45,696 34,174 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 2,316 Nonresidential building............ 31,534 33,859 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 2,402 Nonbuilding................................ 22,074 25,042 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 1,856 Private housing units authorized... 1,829 1,053 1,410 1,296 1,120 1,106 1,017 900 823 782 730 822 682 r714 710 (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 may differ from annual totals because adjustments cent for total and private construction, in each case, and by 8 per cent for are made in accumulated monthly data after original figures have been residential building. 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

MAY 1975 o CONSTRUCTION A 51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Nonresidential Period Total Total d R en e t s i i a ­ l Total Indus­ Bu C il o d m in ­ gs Other 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 o n l e o t n r p ­ ­ Other 2 trial mercial build­ 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 16,052 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1 ,908 15,489 197 1 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,077 93,893 54,288 39,605 4.676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 197 3 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 197 4 134,506 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 11,475 3,310 22,531 July.. 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.. 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.. 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... 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.. 131,133 93,532 42,341 51,191 8,670 16,037 5,854 20,630 37,601 11,573 2,926 Dec... 132,761 90,865 40,145 50,720 8,774 15,372 5,781 20,793 41,896 1975—Jan... 130,256 88,471 37,665 50,806 8,525 15.053 5,779 2),449 41,785 1 ,305 Feb... 125,556 86,625 36,249 50,376 8,734 15,249 5,844 20,549 38,931 1 ,449 Mar.p 125,754 84,418 35,683 48,735 8,151 13,467 5,454 21,663 41 ,336 1,553 1 Includes religious, educational, hospital, institutional, and other build- Note.—Census Bureau data; monthly series at seasonally adjusted igs. annual rates. 2 Sewer and water, formerly shown separately, now included in “Other.” PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Units Median prices (in thousands Mobile of dollars) of Period home units 1- 2-o r- 1- 2-or- 1- 2-or- ship­ Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale 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................................. 1,881 1,046 835 1,867 1,005 861 1,611 601 1,010 449 515 458 34.9 33.5 Mar................................ 1,511 969 542 1,813 954 859 1,567 597 970 475 564 452 36.0 34.0 Apr................................. 1,580 975 605 1,727 917 809 1,545 600 945 435 556 450 35.7 34.3 May............................... 1,467 925 542 1,660 889 771 1,512 594 918 451 569 444 35.7 34.7 June............................... 1,533 1,000 533 1,805 1,053 752 1,480 581 899 441 524 436 35.1 35.0 July................................ 1,314 920 394 1,655 934 721 1,443 578 865 380 509 430 36.8 35.3 Aug................................ 1,156 826 330 1,592 919 674 1,406 570 836 370 466 425 35.7 35.5 Sept................................ 1,157 845 312 1,562 899 663 1,372 565 807 316 495 414 36.2 35.7 Oct................................. 1,106 792 314 1,627 908 719 1,322 553 769 248 433 409 37.2 35.9 Nov................................ 1,017 802 215 1,657 893 763 1,225 541 714 218 435 404 37.3 36.0 Dec................................. 880 682 198 1 ,606 852 754 1,229 545 684 216 384 400 37.5 36.2 1975—Jan.'.............................. 999 739 260 1,544 965 578 1,181 526 655 185 391 403 37.5 36.5 Feb................................. 986 722 264 1,266 755 512 1,165 523 642 219 392 407 38.1 36.7 Mar.?............................. 980 575 223 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 □ MAY 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 Employed1 Unem­ U (p n e e m r r a m e t c e n p e 2 t l n o t y ; ­ Total In c u n l o t n u a ra g l r i­ In ployed S.A.) 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—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 Apr.................. 152,840 59,276 94,457 92,262 84,086 80,848 3,238 8,176 8.9 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ Tr ti a p o n u n s b p l a o i n c r d ta ­ 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 1970............................................................... 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 1971............................................................... 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 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 1974............................................................... 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 SEASONALLY ADJUSTED 1974—Apr.................................................... 78,226 20,147 665 4,087 4,704 16,945 4,154 13,367 14,157 Mav.................................................. 78,357 20,151 668 4,066 4,701 16,994 4,161 13,429 14,187 June.................................................. 78,421 20,184 669 3,994 4,698 17,031 4,156 13,488 14,201 July................................................... 78,479 20,169 675 3,920 4,693 17,107 4,157 13,516 14,242 Aug................................................... 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 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 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 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.................................................... 76,708 18,297 702 3,596 4,561 16,832 4,164 13,771 14,785 Mar.p............................................... 76,346 18,154 706 3,478 4,511 16,788 4,156 13,752 14,801 Apr.p................................................ 76,293 18,058 700 3,462 4,499 16,794 4,164 13,773 14,843 NOT SEASONALLY ADJUSTED 1974—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.................................................... 75,753 18,132 687 3,229 4,497 16,475 4,127 13,606 15,000 Mar.p............................................... 75,735 18,015 691 3,210 4,475 16,498 4,131 13,656 15,059 Apr.p................................................ 76,080 17,936 694 3,320 4,468 16,664 4,147 13,787 15,064 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

MAY 1975 □ PRICES A 53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H o s w o h m n ip e e r - - c F a o o u n i a e d l l l t e r G a i l c n e a i c d t s ­ y o n i p a n i n e s g r h d s a ­ ­ up a k n e d ep p t o io rt n a­ 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 19 71............................ 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—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................. 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 Mar................ 157.8 171.3 163.6 135.5 178.2 228.3 164.0 155.6 140.9 144.8 151.1 164.6 148.9 142.0 146.5 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . , ­ H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b et e u c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s, . t­ e c m M a q e h n e u r i y a d n n ip ­ t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r l o a i l e n l n i ­ s c ­ ­ T e m p t q r o i e a o u r n n n i t p t a s 1 ­ ­ ­ n c M e e o l i l u s a ­ s ­ 1................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 >................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 )................................ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 t............................... 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 L......................... 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 •—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 I—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.................... 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 Apr..................... 172.1 177.7 179.4 169.7 134.4 147.5 236.5 182.4 149.4 174.9 169.7 185.7 159.7 138.5 173.0 139.9 147.3 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME □ MAY 1975 GROSS NATIONAL PRODUCT (In billions of dollars) 1974 1975 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974 I II III IV I p Gross national product. 103.1 55.6 124.5 284.8 977.1 1,054.91,158.01,294.91,397.41.358.8 1,416.31,430.91,419.2 Final purchases.............. 101.4 57.2 120.1 278.0 972.6 1,048.61,149.51,279.61,888.21.841.91,370.8 1,407.61,418.1 1,437.1 Personal consumption expenditures. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 916.3 Durable goods............................... 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 123.9 129.5 136.1 120.7 125.5 Nondurable goods......................... 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 364.4 375.8 389.0 391.7 399.3 Services............................................ 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 352.4 363.8 376.2 383.5 391.5 Gross private domestic investment. 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 210.5 211.8 205.8 209.4 164.6 Fixed investment................................... 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 193.6 198.3 197.1 191.6 182.6 Nonresidential.................................. 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 145.2 149.4 150.9 151.2 147.4 Structures..................................... 5.0 .9 2.9 9.2 36.1 37.9 41.1 47.0 52.0 51.3 52.2 51.0 53.7 52.8 Producers’ durable equipment. 5.6 1.5 6.6 18.7 64.4 66.6 75.7 89.8 97.1 93.9 97.2 99.9 97.5 94.6 Residential structures................... 4.0 .6 3.9 19.4 31.2 42 54.0 57.2 46.0 48.4 48.8 46.2 40.4 35.2 Nonfarm....................................... 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 47. 48.0 45.4 39.7 34.7 Change in business inventories------ 1.7 -1.6 4.5 6.8 4.5 6.3 8.5 15.4 14.2 16.9 13.5 8.7 17.8 -18.0 Nonfarm.......................................... 1.8 -1.4 4.0 6.0 4.3 4.9 7. 11.4 11.9 13.1 10.4 6.6 17.5 -16.6 Net exports of goods and services. 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 11.3 -1.5 -3.1 1.9 5.4 Exports.......................................... 7.0 2.4 5.9 13. 62. 65.4 72.4 100.4 140.2 131.2 138.5 143.6 147.5 143.5 Imports.......................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.1 119.9 140.0 146.7 145.7 138.1 Government purchases of goods and services. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 296.3 304.4 312.3 323.8 332.8 Federal.............................................................. 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 111.5 114.3 117.2 124.5 127.7 National defense........................................ 13.8 14.1 74.6 71.2 74. 74.4 78.7 75. 76.6 78.4 84.0 85.2 Other............................................................. 3 4.3 21.6 26 30.1 32.2 38.2 35.7 37.7 38.8 40.6 42.5 State and local.......................................... 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 184 190.1 195.1 199.3 205.1 Gross national product in constant (1958) dollars............................................................... 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 830.5 827.1 823.1 804.0 782.3 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) 1974 1975 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974 I II III IV \p National income.................................................... 86.8 40.3 104.2 241.1 800.5 857.7 946.5 1,065.61,142.51,118.81,130.21,155.51,165.4 Compensation of employees................................ 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 828.8 848.3 868.2 877.7 875.4 Wages and salaries........................................... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 727.6 744.6 761.5 769.2 764.9 Private............................................................ 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545.1 592.4 573.8 588.3 602.5 605.1 597.2 Military.......................................................... .3 .3 1.9 5.0 19.6 19.4 20.5 20.6 21.2 21.0 20.9 20.8 22.0 22.0 Government civilian.................................... 4.6 4.9 8.3 17.4 95.5 104.7 114.8 126.0 137.1 132.8 135.4 138.2 142.1 145.7 Supplements to wages and salaries................ .7 .5 2.7 7.8 61.9 69.5 80.3 94.4 105.1 101.2 103.7 106.7 108.6 110.5 Employer contributions for social in­ surance ....................................................... .1 .1 2.0 4.0 29.7 33.1 38.6 48.4 53.6 52.3 53.2 54.5 54.6 55.2 Other labor income..................................... .6 .4 .7 3.8 32.2 36.4 41.7 46.0 51.4 48.9 50.5 52.3 54.0 55.3 Proprietors’ income.............................................. 15.1 5.9 17.5 37.5 66.9 69.2 75.9 96.1 93.0 98.4 89.9 92.1 91.6 85.0 Business and professional.............................. 9.0 3.3 11.1 24.0 50.0 52.0 54.9 57.6 61.2 59.3 60.7 62.3 62.5 62.8 Farm................................................................... 6.2 2.6 6.4 13.5 16.9 17.2 21.0 38.5 31.8 39.1 29.1 29.8 29.1 22.2 Rental income of persons.................................... 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.1 26.5 26.4 26.3 26.6 26.8 27.0 Corporate profits and inventory valuation adjustment.......................................................... 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 107.7 105.6 105.8 103.4 Profits before tax.............................................. 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 140.7 135.4 139.0 157.0 131.5 Profits tax liability....................................... 1.4 .5 7.6 17.8 34.8 37.5 41.5 49.8 55.1 52.2 55.9 62.7 52.0 Profits after tax........................................... 8.6 .4 10.1 24.9 39.3 46.1 57.7 72.9 85.0 83.2 83.1 94.3 79.5 Dividends.................................................. 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 31.6 32.5 33.2 33.3 33.7 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 14.6 21.1 30.3 43.3 52.4 51.6 50.5 61.1 46.2 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 -4.8 -4.9 -7.0 -17.6 -35.2 -27.7 -33.4 -51.2 -28.5 -6.2 Net interest............................................................ 4.7 3.2 2.0 36.5 41.6 45.6 52.3 61.6 57.5 60.1 62.8 65.9 68.8 41 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

MAY 1975 □ NATIONAL PRODUCT AND INCOME A 55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1974 1975 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974 I II III IV \p Gross national product........................................ 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,358.81,383.81,416.31,430.91,419.2 Less: Capital consumption allowances........... 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 115.8 118.6 120.7 122.9 125.0 Indirect business tax and nontax lia­ bility......................................................... 7.0 7.1 11.3 23.3 93.5 102.7 110.0 119.2 126.9 122.6 125.9 129.5 129.8 132.2 Business transfer payments..................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.1 5.2 5.3 5.3 5.4 Statistical discrepancy.............................. .7 .6 .4 1.5 -6.4 -2.3 -3.8 -5.0 .4 -6.3 .3 3.0 4.8 Plus: Subsidies less current surplus of gov- -.1 .1 .2 1.7 1.1 2.3 .6 -2.9 -2.7 — 3.7 —2.4 -2.7 —2.6 Equals: National income..................................... 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.51,118.81,130.21,155.51,165.4 Less: Corporate profits and inventory valu­ ation adjustment.................................... 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 107.7 105.6 105.8 103.4 Contributions for social insurance........ .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 99.1 100.8 103.0 103.2 104.5 Excess of wage accruals over disburse­ ments ....................................................... .0 .6 .0 1 — .5 .0 -.6 -1.5 .0 .0 Plus: Government transfer payments............. .9 1.5 2.6 14.3 75.1 89.0 98.6 113.0 134.6 123.1 130.6 138.7 145.8 158.7 Net interest paid by government and 2.5 1.6 2.2 7.2 31.0 31.2 33.0 38.3 42.3 40.8 41.9 42.7 43.6 43.6 Dividends.................................................... 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 31.6 32.5 33.2 33.3 33.7 Business transfer payments..................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.1 5.2 5.3 5.3 5.4 Equals: Personal income..................................... 85.9 47.0 96.0 227.6 808.3 864.0 944.91,055.01,150.51,112.51,134.61,168.21,186.91,193.0 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 161.9 168.2 175.1 178.1 175.7 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 950.6 966.5 993.1 1,008.81,017.4 Less: Personal outlays........................................ 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 866.2 894.9 927.6 922.3 942.5 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 916.3 Consumer interest payments............... 1.5 .5 .9 2.4 16.8 17.7 19.8 22.9 25.0 24.4 24.8 25.3 25.5 25.3 Personal transfer payments to for- .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 1.2 1.0 .9 .9 .9 Equals: Personal saving...................................... 4.2 -.9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 84.4 71.5 65.5 86.5 74.8 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 610.3 603.5 602.9 594.8 591.0 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 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar Total personal income............... 1,055.01,150 1,117. 1,125.21,135 1,143.51,159.5 ,167.2 ,178.0 ,185.0 ,184.5 ,191.0 ,191.1 1,193.41,194.6 Wage and salary disbursements. 691.7 751. 732. 737.1 745, 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 763.6 765.6 Commodity-producing in­ dustries............................ 251.9 270. 265. 267.4 270. 272.6 273.3 276.5 278.3 279.5 272.3 269.3 266.4 260.7 259.9 Manufacturing only........... 196.6 211 205. 207.8 210. 212.5 214.0 215.5 2H.8 219.4 214.2 209.7 206.4 202.9 202.4 Distributive industries. ... 165.1 178. 173. 175.3 177. 179.1 180 180.7 183.1 183. 183.9 183. 183.2 184.0 184.1 Service industries................... 128.2 142. 138. 139.1 141 142.6 143.5 144.9 146.4 146.9 147.4 148.3 149 151.2 152.2 Government............................ 146.6 158. 154 155.3 156. 158.9 162.1 159.5 159.9 162. 164.2 165.2 166.2 167.6 169.3 Other labor income................... 46.0 51.4 49.4 49. < 50. 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 55.3 55.7 Proprietors’income................... 96.1 93. 92 A 89 86.9 90.0 93.1 93.2 91.7 91.6 91.5 88.7 85.0 81.2 Business and professional... 57.6 61. 60.2 60 61.2 61.9 62.5 62.5 62.5 62.5 62.5 62.7 62. 62.8 Farm......................................... 38.5 31. 32.6 29 25.7 28.1 30.6 30.7 29.2 29.1 29.0 26.0 22.2 18.4 Rental income............................. 26.1 26. 25.5 26, 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 27.0 27.0 Dividends..................................... 29.6 32. 32.1 32, 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 33. 33.5 Personal interest income........... 90.6 103. 100.4 102, 103.5 104.4 105.3 106.9 108.0 109.5 111.1 111.9 112.5 112.7 Transfer payments..................... 117. 139. 134.6 135, 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.6 165.5 168.1 Less: Personal contributions for social insurance........ 42. 47.9 47.0 47.2 47.6 47.9 48.5 48.4 48.6 48.9 48.5 48.4 49.5 49.2 49.2 Nonagricultural income............. 1,008.01,109.01,071.61,083.11,096.61,106.81,121.71,126.81,137.41,145.71,145.2 1,151. 41,154.3 1,160.11,165.1 Agricultural income.................... 47.1 41.5 45.5 42.1 38.6 36.8 37.1 40.4 40.6 39.3 39.3 39.5 36.8 33.3 29.5 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 □ MAY 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, by type and sector 1 Total funds raised by nonfinancial sectors.................. 69.9 67.9 82.4 95.9 91.8 98.2 147.4 169.4 187.4 175.7 190.8 160.6 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 AU 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 outlay si.......................................... 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 Excess net investment 3............................................. 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 Note.—Full statements for sectors and transaction types are available sponsored credit agencies are excluded as borrowing by financial institu­ on a quarterly basis and annually for flows and for amounts outstanding. tions. Such issues are on p. A-57, line 11. Corporate equity issues are net Requests for these statements should be addressed to the Flow of Funds cash issues by nonfinancial and foreign corporations. Mortgages exclude Section, Division of Research and Statistics, Board of Governors of the loans in process. Open market paper is commercial paper issued by Federal Reserve System, Washington, D.C. 20551. nonfinancial corporations plus bankers’ acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 credit 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 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 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 9.1 1.8 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 .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.5 6.7 2.3 3 4 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 □ MAY 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 III IV? 1 Merchandise trade balance 1. -6,986 471 -5,881 1,210 -175 -1,674 -2,474 -1,558 2 Exports.............................. 48,768 70,277 97,081 20,216 22,212 23,921 24,731 26,217 3 Imports.............................. -55,754 -69,806 -102,962 -19,006 -22,387 -25,595 -27,205 -27,775 4 Military transactions, net.......... -3,604 -2,266 -2,099 -123 -500 -668 -473 -458 5 Travel and transportation, net. -3,055 -2,710 -2,435 -630 -531 -726 -566 -612 6 Investment income, net 2.......................................... 4,526 5,291 9,679 1,378 3,104 1,870 2,282 2,422 7 U.S. direct investments abroad 2................... 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 Foreign investments in the United States 2 . -5,893 -8,693 -16,263 -2,602 -3,045 -4,512 -4,739 -3,968 10 Other services, net 2.................................................. 3,110 3,540 3,926 901 918 992 984 1,032 11 Balance on goods and services - -6,009 4,327 3,191 2,736 2,816 -206 -247 826 Not seasonally adjusted.. . 3,800 3,948 -45 -3,030 2,317 12 Remittances, pensions, and other transfers. -1,624 -1,943 -1,775 -717 -390 -467 -456 -463 13 Balance on goods, services, and remittances. -7,634 2,383 1,416 2,019 2,426 -673 -703 363 Not seasonally adjusted............................. 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 -772 -673 15 Balance on current account... -9,807 450 -4,025 1,572 4-135 -2,108 -1,475 -310 Not seasonally adjusted., 2,653 1,005 -1,990 -4,239 1,199 16 U.S. Government capital flows excluding nonscheduled repayments, net 5........................................................................ -1,705 -2,938 408 -1,066 41,297 311 -186 -1,014 17 Nonscheduled repayments of U.S. Government assets.......... 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 Long-term private capital flows, net........................................... -98 62 -7,598 -1,451 504 -1,039 -2,402 -4,661 20 U.S. direct investments abroad............................................ -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 Nonliquid short-term private capital flows, net............. -1,541 -4,276 -12,955 -1,253 -3,994 -5,296 -1,427 -2,238 Claims reported by U.S. banks................................. -1,457 -3,940 -12,223 -1,119 -2,817 -5,311 -1,653 -2,442 Claims reported by U.S. nonbanking concerns... -305 -1,240 -2,453 -664 -1,591 -695 -207 40 Liabilities reported by U.S. nonbanking concerns. 221 904 1,721 530 414 710 433 164 Allocations of Special Drawing Rights (SDR’s)........... 710 Errors and omissions, net................................................... -1,790 -2,303 5,197 1,125 1,305 1,463 838 1,592 Net liquidity balance............... -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 Liquid private capital flows, net................................. 3,502 2,302 10,268 3,530 2,016 1,874 4,143 2,235 Liquid claims........................................................... -1,247 -1,944 -5,464 -493 -2,732 -1,197 133 -1,668 Reported by U.S. banks............................... -742 -1,103 -5,445 -472 -2,368 -1,261 -431 -1,385 Reported by U.S. nonbanking concerns.. -505 -841 -19 -21 -364 64 564 -283 Liquid liabilities—................................................. 4,749 4,246 15,732 4,023 4,748 3,071 4,010 3,903 Foreign commercial banks. ....................... 3,716 2,982 12,655 3,227 4,663 2,161 2,896 2,935 International and regional organizations. 104 377 151 384 -530 297 221 163 Other foreigners............................................ 929 887 2,926 412 615 613 893 805 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 Liquid liabilities to foreign official agencies.............................. 9,734 4,452 8,253 -2,145 -557 4,255 1,263 3,295 Other readily marketable liabilities to foreign official agen­ cies 6.............................................................................................. 399 1,118 596 -354 -277 182 61 630 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt................................................................... 189 -475 655 -147 -2 443 -1 215 U.S. official reserve assets, net..................................................... 32 209 -1,434 -15 -210 -358 -1,003 137 Gold........................................................................................... 547 SDR’s........................................................................................ -703 9 -172 -29 -123 -20 Convertible currencies........................................................... 35 233 3 -1 -85 -152 241 Gold tranche position in IMF............................................. 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

MAY 1975 o 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 c9,622 -361 -289 +653 c —210 Feb... 3,824 5,070 7,549 c8,789 4,473 5,483 7,317 c7,872 -649 -413 +232 C+917 Mar... 3,869 5,311 7,625 8,716 4,515 5,414 7,742 7,336 -647 -103 -116 + 1,380 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.., 4.074 865 8,308 4,565 5,829 8,918 -491 + 37 -611 Aug... 4,197 042 8,380 4,726 6,011 9,262 -530 + 32 -882 Sept... 4,176 420 8,396 4,612 5,644 8,698 -436 +776 -302 Oct... 4,316 585 8,673 4,738 5,996 8,769 -421 +589 -96 Nov... 4,473 879 8,974 5,148 6,684 8,965 -675 + 195 +9 Dec... 4,558 949 8,862 5,002 6,291 9,250 -444 +658 -388 Quarter: I 11,767 15,337 22,324 26,917 13,403 16,140 21,555 24,830 -1,657 -804 +769 +2,087 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 C100,218 -6,347 + 1,348 -2,311 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 l2 ld st T o r c e k a i 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 Tot G al o 2 ld s T to re c a k sury v c fo e C 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 t r i 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 Apr.. .. 14,642 11,652 11,567 9 824 2,157 1963... 16,843 15,596 15,513 212 1,035 May... 14,870 11,652 11,567 66 989 2,163 1964... 16,672 15,471 15,388 432 769 June... 14,946 11,652 11,567 94 1,005 2,195 July.... 14,912 11,652 11,567 12 1,021 2,227 1965... 15,450 13,806 13,733 781 863 Aug... 15,460 11,652 11,567 224 1,384 2,200 1966... 14,882 13,235 13,159 1 ,321 326 Sept---- 15,893 11,652 11,567 246 1,713 2,282 1967... 14,830 12,065 11 ,982 2,345 420 Oct.. . . 15,890 11,652 11,567 193 1,739 2,306 1968... 15,710 10,892 10,367 3,528 1 ,290 Nov__ 15,840 11,652 11,567 43 1,816 2,329 1969... 5 16,964 11 ,859 10,367 52,781 2,324 Dec.... 15,883 11,652 11,652 5 1,852 2,374 1970... 14,487 11,072 10,732 629 1,935 851 1975— 1971 ... 612,167 10,206 10,132 6 276 585 1,100 15,948 11,635 11,635 2 1,908 2,403 19727. . 13,151 10,487 10,410 241 465 1,958 Feb 16,132 11,621 11,621 2 2,065 2,444 19738 . . 14,378 11,652 11,567 8 552 2,166 16,256 11,620 11,620 19 2,194 2,423 1974. . . 15,883 11,652 11,652 5 1,852 2,374 9 16,183 11,620 11,620 2 9 2,168 9 2,393 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 Apr. amounted to $2,346 million, reserve position in IMF, $2,108 at time of revaluation. million, and total U.S. reserve assets, $16,076. 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 □ MAY 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—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 76 103 6.478 11.652 231 169 312 882 1.781 927 97 76 103 p49,795 6.478 11.652 p31,665 231 169 312 882 1 ,781 927 97 76 103 1975—Jan.................. 6.478 11,635 231 169 312 882 1.781 927 97 76 Feb.................. 6.478 11,622 231 312 882 1 ,781 927 97 76 Mar.p............. 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—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 3,483 891 148 389 103 154 2.294 1975—Jan.................. 4.262 4.966 150 293 158 173 3,483 891 140 389 103 *•2,294 Feb.................. 4.262 4.966 150 158 173 3.483 891 140 389 103 2.294 Mar.p............. 4.262 4.966 150 158 3.483 891 154 389 103 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—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 1,180 129 764 602 244 3.513 99 151 148 472 265 Feb.................. 67 1 ,180 759 602 244 3.513 99 151 472 272 Mar v. 67 754 244 3.513 99 151 472 1 Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank’s gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ countries. tries, and China Mainland. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 t c f r I r g t r i M a i o s o o n i l m n d F n s g ­ s1 Total t p l S b i i t e o a h a e b i s r b n r o n y t m i k e r r l e t d i s ­ ­ ­ M n T b U o a o a a r b e t n n r . e S k a l d d e s s . e s 3 . t ­ N v k T b o e e U c o a r n r t o e n t n 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 r o n t e n t n a . c t m i S a d e b d b o s . s l s a l n . e e 4 r ­ ­ m r l O e i t a a a a i t b e r b d h k l s i i e e l e l 5 i r y ­ t­ a t m o L l b b i e a i a r t c q i o r b n e o c u a i k s i m l i d a i s d ­ l ­ 6 Total p t l S b i i t o e a h a e b i s r b n r o n y t m i k e r r l e t d i 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 ­ z o 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 i e n a , e ­ i ­ l s ­ ­ f 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 \29.364 800 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........................... J31,145 1,011 14,841 12,484 860 256 328 913 10,116 4,271 3,743 528 906 {31,020 1,011 14,896 12,539 860 256 328 913 9,936 4,272 3,744 528 905 1967 9........................... J35.819 1,033 18,201 14,034 908 711 741 1,807 11,209 4,685 4,127 558 691 \35,667 1,033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 558 677 1968 9........................... /38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 609 725 \38,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 465 722 1969 9........................... io/45,755 1,019 *015,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 525 659 \45,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 525 663 1970—Dec. 9................ |47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 647 844 146,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 565 846 1971—Dec. ii.............. / ( 6 6 7 7 , , 6 8 8 0 1 8 5 5 4 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 3 9 9 , , 0 6 1 7 8 9 1 1 , , 9 9 5 5 5 5 6 6 , , 0 0 9 6 3 0 3 3, , 3 44 7 1 1 1 1 4 4 4 4 1 10 0 , , 2 94 6 9 2 4 4, , 1 1 4 3 1 8 3 3 , , 6 6 9 9 1 4 4 4 4 4 7 7 1 1 , ,5 52 2 3 8 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—Mar................... 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.r................. 111,940 73,718 50,891 4.880 12.330 3.867 1,750 27,970 8,125 7,694 431 2,127 Nov.r............... 115,616 75,061 51 ,809 4,906 12.330 3.867 2,149 29,668 8,407 7,926 481 2,480 Dec.r................ 118,898 76,570 53,057 5,059 12.330 3.867 2,257 30,248 8,783 8,285 498 3,297 1975—Jan.................... 118,022 75,793 51 ,774 5,177 12.457 3.867 2,518 29,374 8,692 8,184 508 4,163 Feb.?7................ 119,466 78,552 54,203 5,359 12.457 3.867 2,666 27,649 9,050 8,440 610 4,215 M ar................ 120,079 79,068 53,683 6,003 12.457 3.867 3,058 27,853 9,013 8,405 608 4,145 1 Includes (a) liability on gold deposited by the IMF to mitigate the 10 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. □ MAY 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 countries2 End of period countries Canada republics Asia Africa 197 1 50,651 30,134 3,980 1,429 13,823 415 870 197 2 61.526 34,197 4,279 1,733 17,577 777 2,963 197 3 66,810 45,717 3,853 2,544 10,884 788 3,024 1974—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 May.. 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... 72,606 42,680 3,819 4,421 16,182 2,850 2,654 Oct... 73,718 43,041 3,809 4,046 17,186 2,947 2,689 Nov... 75,061 43,223 3,710 3,742 18,525 3,204 2,657 Dec... 76,570 44,169 3,665 4,419 18,529 3,161 2,627 1975—Jan.. . 75,793 43,234 3,626 3,659 19,480 3,232 2,562 Feb.P. 78,552 44,707 3,616 4,224 20,198 3,356 2,451 Mar.p 79,068 45,786 3,546 4,390 19,325 3,433 2,588 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; 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 Total i Deposits U.S. Other foreign Total bills and short­ Treasury short­ cur­ certifi­ term Total bills and term rencies Demand cates liab. 7 Demand Time2 certifi­ liab.4 cates 3 1971................................ 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 1972................................ 60,697 60,201 8,290 5,603 31,850 14,458 496 1,413 86 202 326 800 1973................................ 69,022 68,425 11,310 6,863 31,886 18,366 597 1.955 101 83 296 1,474 1974—Mar..................... 72,852 72,086 11,651 6,956 31,444 22,034 766 1,206 96 63 227 820 Apr..................... 75,244 74,537 11,977 7,303 32,676 22,581 706 1.164 60 57 209 838 May................... 78,721 78,068 11,672 7,609 33,983 24,805 653 1,388 95 53 46 1,194 June.................... 80,982 80,190 12,856 8,253 34,038 25,043 792 1,653 106 66 91 1.390 July..................... 83,945 83,279 12,222 8,643 34,178 28,235 666 1,745 121 66 51 1,508 Aug..................... 86,815 86,069 11,841 9,073 33,179 31,976 746 1,921 81 68 146 1,627 Sept..................... 87,652 86,957 12,769 9,222 33,467 31,499 696 1,900 128 69 75 1,629 Oct...................... 88,552 87,833 11,228 9,789 34,187 32,628 719 1,997 125 89 93 1,690 Nov..................... 91,439 90,695 12,860 9,532 35,020 33,283 744 2,036 128 89 94 1,725 Dec.r.................. 94,755 93,989 14,054 10,081 35,662 34,192 766 3.165 139 105 497 2,424 1975—Jan...................... 93,244 92,523 12,298 10,157 38,108 31,960 721 3,911 123 104 1,234 2,450 Feb.P.................. 94,247 93,514 12,144 10,322 40,428 30,620 733 3.955 118 95 1,260 2,482 Mar.p................. 93,406 92,724 12,321 10,162 40,094 30,148 682 3,465 189 107 777 2.391 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 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 institutions8 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 cates3 cates3 197 1 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32.311 3,177 165 197 2 59,284 8,204 5,401 31,523 13,659 496. 40,000 1 ,591 2,880 31,453 3,905 171 197 3 67,067 11,209 6,780 31,590 16,892 597 43,919 2,125 3,911 31,511 6,245 127 1974—Mar.. 71,646 11,555 6,894 31,217 21,215 766 43,412 2,631 3,800 31,064 5,790 127 Apr.. 74,080 11,917 7,246 32,467 21,742 706 45,175 ~ 920 3,949 32.312 5,867 127 May. 77,334 11,577 7,556 33,937 23,611 653 46,167 352 4,025 33,731 5,931 127 June., 79,329 12,750 8,187 33,947 23,652 792 47,430 643 4,277 33,745 6,638 127 July.. 82,200 12,102 8,578 34,128 26,727 666 48,429 561 4,445 33,749 7,547 127 Aug.., 84,893 11,760 9,005 33,033 30,349 746 48,382 473 4,429 32,687 8,665 127 Sept.., 85,752 12,641 9,153 33,392 29,870 696 50,114 824 4,313 32,955 9,895 127 Oct.. . 86,555 11,104 9,700 34,094 30,938 719 50,891 168 4,483 33,634 10,478 127 Nov.., 89,403 12,732 9,443 34,927 31,558 744 51,809 2; 472 4,122 34,467 10,621 127 Dec.. , 91,590 13,915 9,976 35,165 31,768 766 53,057 2,951 4,324 34,656 10,999 127 1975—Jan... 89,332 12,174 10.053 36,874 29,510 721 51,774 2,188 4,351 36,531 8,706 Feb.*. 90,292 12,026 10,226 39,169 28,138 733 54,203 2,061 4,306 38,840 8,996 Mar.p, 89,941 12,131 10.054 39,316 27,757 682 53,683 2,326 4,284 39,015 8,059 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 Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 7 cates cates 1971.......................... 14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972......................... 19,284 14,340 4,658 405 5 9,272 4,618 1,955 2,116 65 481 325 1973.......................... 23,147 17,178 6,941 515 11 9,710 5,500 2,143 2,353 68 936 469 1974—Mar.............. 28,233 21,449 6,568 506 54 14,321 6,145 2,356 2,588 98 1,104 639 Apr............... 28,905 21,940 6,599 677 63 14,601 6,385 2,398 2,620 92 1,274 579 May............. 31,167 24,113 6,910 788 82 16,334 6,528 2,315 2,744 124 1,346 526 June............. 31,899 24,439 7,689 996 95 15,660 6,795 2,419 2,915 107 1,355 665 July.............. 33,771 26,271 7,105 1,165 204 17,797 6,961 2,436 2,967 175 1,383 539 Aug.............. 36,511 28,736 6,890 1,426 200 20,220 7,156 2,397 3,150 145 1,464 618 Sept.............. 35,639 27,411 7,096 1,576 258 18,481 7,659 2,722 3,264 179 1,495 568 Oct............... 35,664 27,379 6,361 1,796 268 18,954 7,694 2,574 3,422 193 1,505 591 Nov............. 37,594 29,051 7,622 1,713 253 19,463 7,927 2,638 3,608 207 1,474 617 Dec............... 38,533 29,609 8,253 1,856 232 19,268 8,285 2,710 3,796 277 1,502 639 1975—Jan................ 37,558 28,654 7,362 1,943 158 19,192 8,184 2,625 3,760 186 1,613 721 Feb.p........... 36,089 26,916 7,145 2,048 129 17,594 8,441 2,820 3,872 200 1,548 733 Mar.p.......... 36,258 27,171 7,066 1,844 101 18,161 8,405 2,740 3,927 200 1,537 682 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 and Treasury and Bank for International Settlements and European Fund. bills issued to official 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. □ MAY 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) 1973 1974 1975 Area and country Dec. June July Aug. Sept. Oct. Nov. Dec.r Jan. Feb. Mar.*3 Europe: 161 310 484 530 597 568 557 607 597 624 635 1,483 1,836 1,828 1,937 1,933 2,047 2,295 2,506 2,391 2,647 2,539 659 266 239 251 268 285 338 369 369 324 370 165 174 203 229 219 223 262 266 204 204 202 3,483 3,425 3,763 3,611 3,561 3,920 3,822 4,274 4,206 4,035 4,226 Germany....................................................... 13,227 13,528 12,602 11,873 9,337 8,623 9,102 9,420 9,948 10,801 11,236 Greece............................................................ 389 232 222 298 293 255 213 248 253 242 192 1,404 1,281 1,327 1,101 3,138 2,748 2,192 2,617 2,101 2,260 2,448 Netherlands.................................................. 2,886 2,352 2,232 2,234 2,498 3,009 3,177 3,234 3,208 3,242 3,459 965 911 878 894 1,023 1,131 1,181 1,040 874 826 843 Portugal......................................................... 534 411 429 422 435 411 338 310 310 303 288 Spain............................................................... 305 324 362 303 377 347 332 382 379 320 358 1,885 1,211 1,160 1,049 1,096 1,071 1,103 1,138 1,132 1,215 1,209 3,377 6,386 7,216 7,850 8,393 8,974 9,378 10,007 9,601 9,453 8,862 Turkey........................................................... 98 125 134 106 100 121 102 152 169 131 243 United Kingdom......................................... 6,148 8,748 8,558 9,071 8,709 7,565 8,166 7,501 6,580 6,208 7,053 86 100 106 100 151 136 105 183 187 168 158 Other Western Europe1............................ 3,352 2,701 2,851 2,829 3,122 3,218 3,432 4,051 3,103 2,859 2,601 U.S.S.R.......................................................... 22 27 27 26 40 44 33 82 65 59 35 110 126 133 147 149 136 140 206 172 120 218 40,742 44,473 44,755 44,861 45,438 44,833 46,267 48,595 45,848 46,040 47,176 Canada............................................................... 3,627 3,550 3,595 3,250 3,754 4,226 3,725 3,503 3,405 3,789 3,456 Latin America: Argentina....................................................... 924 1,378 1,252 1,189 1,105 1,017 938 886 900 894 822 Bahamas....................................................... 824 1,485 1,546 3,201 1,216 1,678 1,741 1,452 2,160 2,050 1,757 860 782 778 817 873 894 951 1,034 859 927 1,065 Chile............................................................... 158 240 279 253 266 270 297 276 284 281 258 Colombia....................................................... 247 217 264 285 293 292 305 305 319 317 326 7 6 7 6 7 6 7 7 6 6 8 Mexico........................................................... 1,285 1,412 1,411 1,610 1,643 1,731 1,731 1,770 1,747 1,734 1,668 282 550 566 445 511 484 474 488 500 476 517 Peru................................................................ 135 166 197 185 182 177 183 272 256 238 225 120 121 122 115 120 128 140 147 152 164 171 1,468 2,707 2,600 2,999 3,217 2,992 2,896 3,413 2,918 3,351 3,501 884 1,071 1,183 1,066 1,214 1,113 1,176 1,316 1,211 1,263 1,348 Netherlands Antilles and Surinam.......... 71 122 92 103 123 138 135 158 155 133 143 Other Latin America.................................. 359 462 672 828 553 508 839 515 892 468 492 7,626 10,722 10,966 13,101 11,321 11,429 11,815 12,038 12,359 12,302 12,301 Asia: China, People’s Rep. of (China Mainland) 38 33 39 40 40 43 45 50 50 73 82 China, Republic of (Taiwan).................... 757 688 772 842 822 797 808 818 977 1,015 1,017 Hong Kong................................................... 372 462 470 490 621 470 551 530 558 546 528 85 225 172 131 158 140 156 261 179 177 183 133 257 863 785 943 1,600 1,363 1,221 1,327 1,083 497 327 256 226 211 217 218 279 386 417 473 508 6,954 9,440 9,991 9,912 10,136 10,407 10,891 10,897 10,442 10,909 11,390 195 262 215 277 304 313 309 384 315 327 311 515 772 762 715 748 726 731 747 702 642 745 247 524 451 403 362 328 333 333 337 327 455 1,202 2,572 3,614 4,252 4,726 4,832 5,681 5,446 6,003 6,136 4,651 10,826 15,491 17,576 18,060 19,076 19,874 21,147 21,073 21,307 21,708 20,368 Africa: Egypt.............................................................. 35 84 91 105 73 109 109 103 105 106 92 11 39 54 63 79 73 59 38 71 81 65 114 102 170 156 157 138 155 130 150 188 191 Zaire............................................................... 87 58 46 46 43 41 82 84 66 41 38 808 1,911 2,042 2,258 2,893 2,973 3,199 3,197 3,272 3,392 3,461 1,056 2,193 2,403 2,627 3,244 3,333 3,604 3,551 3,664 3,809 3,848 Other countries: 3,131 2,831 2,848 2,926 2,847 2,788 2,759 2,742 2,661 2,568 2,725 59 69 58 68 72 71 86 89 88 76 66 Total....................................................... 3,190 2,900 2,906 2,994 2,918 2,859 2,845 2,831 2,748 2,644 2,792 67,067 79,329 82,200 84,893 85,752 86,555 89,403 91,590 89,332 90,292 89,941 International and regional: International2.............................................. 1,627 1,305 1,383 1,567 1,534 1,665 1,752 2,894 3,636 3,677 3,214 272 227 253 262 261 232 213 202 226 222 207 57 122 108 93 103 100 70 69 50 57 44 1,955 1,653 1,745 1,921 1,900 1,997 2,036 3,165 3,911 3,955 3,465 Grand total.......................................... 69,022 80,982 83,945 86,815 87,652 88,552 91,439 94,755 j 93,244 94,247 93,406 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 data 4 1972 1973 1974 1972 1973 1974 Area and country Area and country Dec. Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus........................................ 3 9 19 10 7 Laos................................. 2 3 3 3 3 Iceland........................................ 9 12 8 11 21 Lebanon.......................... 55 55 62 68 119 Ireland, Rep. of......................... 17 22 62 53 29 Malaysia......................... 54 59 58 40 63 Pakistan........................... 59 93 105 108 91 Other Latin American republics: Singapore........................ 77 53 141 165 240 Bolivia.......................................... 87 65 68 102 96 Sri Lanka (Ceylon) 5 6 13 13 14 Costa Rica................................... 92 75 86 88 117 Vietnam........................... 135 98 88 98 126 Dominican Republic................ 114 104 118 137 127 Oil-producing countries 534 486 652 1,331 4,640 Ecuador....................................... 121 109 92 90 122 El Salvador................................. 76 86 90 129 129 Guatemala................................... 132 127 156 245 214 Haiti.............................................. 27 25 21 28 35 Other Africa: Honduras..................................... 58 64 56 71 88 Algeria........................... 32 51 111 110 67 Jamaica......................................... 41 32 39 52 69 Ethiopia (incl. Eritrea) 57 75 79 118 95 Nicaragua.................................... 61 79 99 119 127 Ghana............................ 10 28 20 22 18 Paraguay...................................... 22 26 29 40 46 Kenya............................ 23 19 23 20 Trinidad and Tobago............... 20 17 17 21 107 Liberia........................... 30 31 42 29 39 Libya.............................. 393 312 331 257 Other Latin America: Nigeria........................... 85 140 78 736 Bermuda........................................ (2) 127 242 201 116 Southern Rhodesia 2 1 2 1 2 British West Indies..................... 36 100 109 354 Sudan............................. 3 3 3 2 4 Tanzania....................... 11 16 12 12 11 Other Asia: Tunisia............................ 10 11 7 17 19 Afghanistan................................. 25 19 22 11 Uganda.......................... 7 19 6 11 13 Burma............................................ 2 17 12 42 Zambia............................ 28 37 22 66 Cambodia..................................... 3 3 2 4 4 Jordan........................................... 4 4 6 6 22 All other: New Zealand................ 30 34 39 33 47 1 Includes Bank for International Settlements and European Fund. 4 Represent a partial breakdown of the amounts shown in the other 2 Data exclude holdings of dollars of the International Monetary Fund. categories (except “Other Eastern Europe”). 3 Asian, African, and European regional organizations, except BIS and 5 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 1971r.............................. 902 446 457 144 257 56 164 52 30 111 3 87 9 1Q77 2 /l,000 562 439 93 259 87 165 63 32 136 1 32 10 \1,018 580 439 93 259 87 165 63 32 136 1 32 10 1973................................ 1,467 761 706 310 296 100 165 66 245 132 5 78 16 1974—Mar..................... 1 ,577 951 626 259 280 87 165 45 232 130 2 39 13 Apr...................... 1 ,690 1,025 665 294 282 89 165 56 227 152 2 50 13 May.................... 1,657 1,005 652 296 282 74 165 56 220 144 2 52 13 June.................... 1,650 974 676 321 283 73 165 56 220 144 2 77 12 July..................... 1,689 978 711 337 299 75 171 56 231 142 2 97 13 Aug..................... 1 ,533 1,005 528 136 316 76 170 60 45 141 1 97 13 Sept..................... 1 ,402 920 482 93 316 73 170 60 45 123 1 70 13 Oct...................... 1,332 852 480 111 299 71 170 48 45 116 1 87 13 Nov..................... 1,318 832 485 112 298 75 170 48 45 116 I 88 !7 Dec.r.................. 1 ,320 820 500 124 298 79 170 48 45 115 1 101 20 1975—Jan....................... 1,406 846 560 223 266 71 150 42 26 118 1 200 21 Feb...................... 1 ,441 776 666 336 264 66 147 41 23 119 1 313 21 Mar.p................. 1 ,523 795 728 406 255 67 137 41 24 120 1 383 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. □ MAY 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 Mar. Apr. May June July Aug. Sept. Oct. Nov. Decr Jan. Feb.P Mar.p Europe: Belgium-Luxembourg........................ 7 7 7 7 9 9 10 10 10 10 11 12 14 Sweden................................................. 260 260 260 260 260 260 250 250 276 251 252 252 252 Switzerland.......................................... 34 33 35 34 35 34 34 30 30 30 31 30 29 United Kingdom................................ 439 457 428 424 426 439 459 485 498 493 529 578 598 Other Western Europe..................... 90 89 87 89 97 101 96 102 98 97 89 83 80 Eastern Europe.................................. 5 5 5 5 5 5 5 5 5 5 5 3 5 Total............................................. 835 851 823 819 832 849 854 883 917 885 916 959 1,180 Canada..................................................... 847 848 849 849 851 756 706 707 711 713 697 584 588 Latin America: Latin American republics................. 11 11 11 11 11 11 11 11 11 12 11 91 11 Other Latin America........................ 3 3 5 5 5 5 17 25 62 88 88 148 114 Total............................................ 14 14 16 16 16 16 28 36 74 100 99 239 125 Asia: Japan.................................................... 3,703 3,531 3,499 3,498 3,497 3,498 3,497 3,497 3,498 3,498 3,498 3,496 3,496 Other Asia.......................................... 11 11 12 12 12 12 12 12 12 212 325 541 1,071 Total............................................ 3,714 3,542 3,510 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 4,037 4,567 157 157 157 157 156 151 151 151 151 151 151 151 151 All other.................................................. 25 25 25 25 25 25 25 25 25 Total foreign countries......................... 5,592 5,437 5,379 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 5,969 6,611 International and regional: International....................................... 217 141 174 57 51 102 23 78 80 71 190 201 601 Latin American regional................. 49 44 41 60 75 71 68 52 67 61 61 59 79 Total............................................ 267 185 214 117 126 173 91 130 147 132 25 260 680 Grand total................................ 5,859 5,622 5,594 5,493 5,516 5,479 5,364 5,441 5,534 5,689 5,936 6,229 7,291 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 14). 11- SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— Accept­ Foreign End of period Total Collec­ ances govt, se­ tions made Deposits curities, Total Official out­ for acct. Other Total with for­ coml. Other Total institu­ Banks1 Others 2 stand­ of for­ eigners and fi­ tions ing eigners nance paper 1971r............................... 13,272 12,377 3,969 229 2,080 1,660 2,475 4,254 1,679 895 548 173 174 1 y t Z J T.......................... { (1 1 5 5 , , 4 6 7 7 1 6 1 1 4 4 , , 6 8 2 3 5 0 5 5, , 6 6 7 7 1 4 1 16 6 2 2 2 2, , 9 9 7 7 5 0 2 2 , , 5 53 4 7 0 3 3 , ,2 2 6 7 9 6 3 3 , , 2 2 2 0 6 4 2 2 , ,4 65 7 7 8 8 8 4 4 6 6 4 4 4 4 1 1 2 2 2 23 3 1 18 82 2 1973'............................... 20,698 20,036 7,660 284 4,538 2,839 4,307 4,160 3,910 662 428 119 115 1974—Mar.r................. 25,789 24,941 9,029 428 5,776 2,825 4,642 5,150 6,120 849 545 160 144 Apr..................... 26,695 25,838 9,537 354 6,124 3,059 4,805 5,838 5,657 857 589 99 169 May.................... 29,874 28,990 9,916 367 6,355 3,194 5,081 6,624 7,369 884 611 113 160 June.................... 32,383 31,426 11,450 390 7,726 3,334 5,107 7,599 7,270 957 687 130 141 July..................... 33,680 32,677 10,882 480 6,831 3,571 5,152 9,177 7,467 1,003 626 207 170 Aug.r................. 35,216 34,411 11,590 452 7,792 3,346 5,295 9,459 8,067 805 461 180 164 Sept.r................. 34,132 33,214 10,598 526 6,719 3,354 5,245 9,538 7,832 918 468 217 233 Oct...................... 34,250 33,220 10,074 371 6,371 3,332 5,356 10,034 7,756 1,030 547 243 240 Nov..................... 36,393 35,365 11,040 439 7,174 3,426 5,345 10,693 8,287 1,028 515 283 229 Dec.r.................. 38,680 37,470 11,342 394 7,389 3,559 5,637 11,190 9,301 1,210 668 289 253 1975—Jan.r................... 38,881 37,592 10,232 361 6,318 3,553 5,565 10,995 10,800 1,289 719 351 219 Feb.'.................. 39,721 38,532 10,313 378 6,414 3,521 5,346 11,090 11,783 1,190 609 336 244 Mar.p................. 41,873 40,713 9,942 309 5,999 3,634 5,415 11,294 14,062 1 ,160 573 290 297 1 Excludes centra] banks, which are included with “Official institutions.” in reporting coverage. Figures on the first line are comparable in cover- 2 Includes International and Regional Organizations. age with those shown for the preceding date; figures on the second line 3 Data on the 2 lines shown for this date differ because of changes are comparable with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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) 1973 1974 1975 Area and country Dec. June July Aug. Sept. Oct. Nov. Dec.r Jan. Feb p Mar.P Europe: 11 104 18 72 17 21 42 21 18 38 22 Belgium-Luxembourg................................ 148 230 266 207 164 301 308 384 401 591 550 48 65 45 49 51 59 45 46 54 53 41 108 134 150 151 146 128 107 122 132 136 137 France............................................................ 621 731 703 760 637 485 791 673 867 893 849 Germany....................................................... 311 422 372 379 342 332 438 589 390 435 378 Greece............................................................ 35 49 61 66 59 48 57 64 52 42 46 Italy................................................................ 316 572 437 441 354 340 340 345 351 277 287 133 212 165 112 130 176 183 348 195 210 187 72 91 103 136 113 94 97 119 115 106 104 23 32 30 24 26 35 25 20 16 39 32 222 404 392 382 253 227 201 196 184 166 150 153 117 119 139 159 149 160 180 128 99 72 176 663 386 355 377 277 339 335 252 267 230 10 10 26 19 15 15 14 15 23 17 19 United Kingdom........................................ 1,459 2,463 2,362 2,619 2,228 1,852 2,332 2,401 2,663 2,no 2,924 Yugoslavia..................................................... 10 20 26 25 28 24 28 22 38 18 16 Other Western Europe............................... 27 26 19 22 18 31 38 22 22 27 24 U.S.S.R.......................................................... 46 47 35 30 21 27 28 46 44 48 34 Other Eastern Europe................................ 59 67 88 89 102 105 86 131 124 100 110 Total....................................................... 3,988 6,458 5,804 6,073 5,239 4,724 5,660 6,076 6,067 6,331 6,212 1,955 2,205 2,348 2,111 2,032 2,556 2,517 2,773 2,904 2,643 2,928 Latin America: 499 673 686 704 695 679 704 720 783 808 873 875 1,888 1,558 2,086 2,486 2,763 2,616 3,269 3,737 4,653 5,664 900 1,477 1,507 1,522 1,534 1,476 1,493 1,415 1,264 1,345 1,266 Chile............................................................... 151 187 224 231 250 256 291 290 303 351 395 397 522 601 679 665 686 675 713 706 679 695 12 13 12 13 14 13 13 14 13 18 15 Mexico........................................................... 1,373 1,720 1,770 1,828 1,706 1,836 1,898 1,972 1,898 2,004 2,112 Panama.......................................................... 266 392 400 401 410 405 402 503 604 458 546 Peru................................................................ 178 281 353 421 408 433 486 518 504 531 555 Uruguay......................................................... 55 40 59 50 47 46 63 63 75 86 104 518 606 644 642 627 557 643 704 795 747 736 Other Latin American republics.............. 493 675 690 700 711 724 810 852 873 890 890 Netherlands Antilles and Surinam.......... 13 41 38 56 64 61 74 62 45 39 39 140 358 312 448 370 693 920 1,138 1,451 1,549 1,585 5,870 8,872 8,856 9,781 9,989 10,628 11,088 12,233 13,051 14,156 15,474 Asia: China, People’s Rep. of (China Mainland) 31 23 28 22 9 7 5 4 18 65 19 China, Republic of (Taiwan).................... 140 354 403 443 461 496 482 497 524 473 500 147 208 200 271 243 214 238 223 203 184 291 16 18 20 34 17 19 16 14 19 22 17 88 115 117 120 122 128 140 157 142 159 145 Israel............................................................... 166 145 193 192 197 200 208 250 271 284 322 Japan............................................................. 6,400 10,843 12,395 12,814 12,390 11,714 12,406 12,496 11,811 11,246 11,327 Korea............................................................. 403 620 641 706 733 760 835 955 1,116 1,286 1,629 Philippines.................................................... 181 302 295 348 340 346 324 371 300 342 353 273 421 427 429 436 414 416 441 374 374 406 Other.............................................................. 394 708 816 677 669 669 666 771 739 776 841 8,238 13,757 15,534 16,056 15,617 14,966 15,737 16,178 15,516 15,211 15,850 Africa: Egypt.............................................................. 35 66 68 83 97 93 91 111 106 114 122 Morocco........................................................ 5 5 14 10 10 11 12 18 19 15 19 129 202 213 238 243 282 299 329 364 396 413 Zaire............................................................... 60 91 93 97 94 107 101 96 31 38 31 159 273 286 275 311 312 291 299 265 291 290 388 637 675 702 755 806 795 854 785 853 875 Other countries: Australia........................................................ 243 383 400 415 422 478 492 466 433 431 435 All other........................................................ 43 70 63 77 76 91 104 99 125 95 99 Total....................................................... 286 453 463 492 498 569 597 565 558 526 534 Total foreign countries................................... 20,725 32,383 33,680 35,215 34,130 34,249 36,392 38,680 38,880 39,721 41,873 International and regional............................. 1 1 1 1 2 1 1 1 1 1 Grand total.......................................... 20,726 32,383 33,680 35,216 34,132 34,250 36,393 38,680 38,881 39,721 41,873 Note.—Short-term claims are principally the following items payable their own account or for account of their customers in the United States; on demand or with a contractual maturity of not more than 1 year; loans and foreign currency balances held abroad by banks and bankers and made to, and acceptances made for, foreigners; drafts drawn against their customers in the United States. Excludes foreign currencies held foreigners, where collection is being made by banks and bankers for 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. □ MAY 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 tries2 Total institu­ Banks1 foreign­ claims tions ers2 1971r................. 3,667 3,345 570 315 2,460 300 22 130 593 228 1,458 246 583 429 1 0*70 ^ t J4,954 4,539 829 430 3,281 375 40 145 704 406 1,996 319 881 503 \5,063 4,588 840 430 3,319 435 40 150 703 406 2,020 353 918 514 1973 ^................ 5,992 5,442 1,154 591 3,696 478 72 148 1 ,124 490 2,112 251 1,331 532 1974—Mar.r. . 6,174 5,558 1,277 657 3,624 541 75 157 1,288 473 2,155 256 1,352 494 Apr.r... 6,783 6,140 1,567 751 3,823 567 76 201 1,574 478 2,370 254 1,373 532 Mayr... 6,830 6,214 1,566 772 3,875 550 67 224 1,559 467 2,434 241 1,381 524 Juner... 7,087 6,475 1,619 792 4,064 546 66 222 1,686 496 2,487 244 1,434 518 July r. .. 7,115 6,502 1,486 909 4,108 545 67 249 1,603 498 2,552 269 1,423 520 Aug.r... 7,055 6,448 1,452 913 4,084 539 68 285 1,545 503 2,527 269 1,416 511 Sept.r.. 6,999 6,386 1,416 853 4,116 542 71 266 1,535 543 2,479 247 1,425 505 Oct.r... 7,250 6,571 1,438 914 4,220 608 71 333 1,725 523 2,495 264 1,396 515 Nov.r... 7,251 6,561 1,370 933 4,258 618 72 339 1,652 506 2,574 257 1,392 531 Dec.r... 7,155 6,481 1,327 931 4,223 607 65 329 1,578 486 2,602 258 1,359 534 1975—Jan........ 7,262 6,624 1,364 968 4,293 583 54 323 1,669 475 2,603 248 1,388 552 Feb.p... 7,457 6,797 1,374 1,035 4,388 606 54 347 1 ,749 485 2,675 248 1 ,355 593 Mar.p... 7,555 6,896 1 ,395 1,062 4,438 603 55 362 1 ,769 485 2,695 247 1 ,409 583 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............................... -479 94 -573 -642 69 15,515 13,830 1 ,684 1,045 3,325 -2,281 1,899 1,718 181 1975—Jan.-Mar.p... . 1,005 -49 1,054 944 109 3,520 3,626 -106 434 2,410 -1,977 429 487 -58 1974—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................... 23 9 14 14 1,049 1,056 -7 94 251 -158 128 116 12 Aug................... -37 47 -84 -73 -11 1,400 1,132 268 59 214 -155 146 117 29 Sept................... -116 -82 -33 -60 27 1,361 1,183 178 72 152 -80 145 100 45 Oct..................... 70 32 38 38 1,568 1,364 205 86 362 -276 89 152 -63 Nov................... 132 57 76 25 50 1,415 1,311 103 92 170 -78 124 102 22 Dec.r......... 134 -36 171 153 17 927 978 -50 101 524 -423 117 87 30 1975—Jan..................... 18 -109 127 118 9 65 949 -883 131 1,207 -1,076 148 156 -9 Feb.2’................. 231 -53 285 182 102 1,704 1,356 347 118 554 -436 134 173 -39 Mar.p............... 756 114 642 644 -3 1,751 1,321 431 186 650 -464 148 158 -10 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

MAY 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 France many lands land King­ Europe Europe Canada America Asia Other1 sales ( —) dom 1972....................... 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973....................... 12,762 9,978 2,785 439 2 339 685 366 274 2,104 99 -1 577 5 1974....................... 7,552 7,095 457 203 39 330 36 -304 50 354 -6 -33 131 10 1975—Jan.-Mar.* 3,261 2,303 958 67 51 62 196 177 31 584 47 -2 313 17 1974—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........... 508 510 -2 13 5 39 -9 -49 3 2 10 -2 -14 2 Aug........... 580 502 78 19 18 16 15 7 -11 64 14 9 -10 * Sept........... 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........... 604 616 -12 5 1 -2 -35 -51 4 -77 -2 -5 70 I Dec............ 450 429 -21 13 13 20 -10 -76 9 -30 14 10 27 * 1975—Jan............. 731 541 190 34 15 8 42 -8 15 107 12 -15 84 2 Feb.*. 1 ,383 849 533 21 25 14 115 147 9 331 20 18 150 15 Mar.*.... 1 ,148 913 235 12 11 40 39 38 7 146 15 -5 80 * 1 Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Tota I 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 Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 2 1,881 336 74 135 367 315 1,303 82 22 323 148 197 3 1,948 201 -19 307 275 473 1,204 49 44 588 52 197 4 1 ,395 96 183 96 352 -59 702 50 43 557 34 1975—Jan.-Mar.* 36 27 34 511 -529 1974—Ma r 139 1 -2 -79 -6 -81 -1 -1 215 Apr............ 203 60 26 17 114 4 * 86 May.......... 66 10 28 19 1 59 3 3 -3 June.......... 242 5 116 15 64 -17 185 1 -3 56 July........... -5 -1 72 2 36 -11 100 1 7 10 -128 Aug........... 190 1 1 -1 29 -9 21 2 199 -36 Sept........... 176 1 -1 2 54 -3 55 4 -15 130 Oct............ 226 10 -1 13 6 -5 25 18 100 79 Nov........... 224 4 2 -1 -20 -6 -23 11 398 -163 Dec.r........ -11 1 -4 1 54 5 56 -4 93 -173 1975—Ja...............n 27 6 59 74 14 152 -212 Feb.*......... -186 -4 3 -83 -80 16 37 -159 Mar.?5.... 195 1 10 23 32 4 322 -158 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 1971—Dec............................... 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 1972—June............................. 312 339 Sept.............................. 286 336 1975— 372 405 Jan.-Mar. *-2,034 -835 -1,199 -86 -739 -127 -269 20 1 1973—Mar............................... 310 364 1974—Mar.... -311 4 -315 -24 -288 -15 10 * 3 316 243 Apr.r.. -144 3 -147 -8 -157 6 12 * * 290 255 May. .. -66 5 -71 -26 -35 -22 10 * 3 333 231 Juner.. -105 3 -107 -75 -121 -6 94 1 * July.... -146 1 -147 -63 -108 -1 24 — 1 3 1974—Mar.............................. 383 225 Aug___ -126 2 -127 -35 -126 -9 42 — 1 1 June.............................. 354 241 Sept---- -35 12 -47 -41 -37 5 22 1 3 298 178 Oct....... -340 2 -342 -81 -244 * -18 _J 2 Dec.25........................... 293 193 Nov.... -56 3 -59 -21 -8 -14 -21 2 3 Dec.. . . -393 -95 -298 -27 -190 -25 -67 12 * Note.—Data represent the money credit balances and 1975—Jan....... -1,085 -572 -514 -41 -405 -28 -60 20 * money debit balances appearing on the books of reporting Feb.*.. -475 -147 -328 19 -159 -97 -94 2 * brokers and dealers in the United States, in accounts of Mar.*.. -474 -116 -358 -64 -175 -3 -115 -2 1 foreigners with them, and in their accounts carried by 1 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. a MAY 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 1972—Dec............ 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 2,220 1973—Dec............ 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—Feb............ 127,246 4,409 1,612 2,797 117,755 20,357 57,894 3,144 36,360 5.081 Mar.r........ 136,984 7,814 5,336 2,478 123,997 22,397 60,563 3,539 37,497 5,174 Apr.'......... 140,020 5,980 3,504 2,476 128,823 23,119 62,901 3,753 39,050 5,217 May r......... 145,918 7,894 5,329 2,566 132,513 24,583 64,693 3,703 39,534 5,510 June'......... 147,467 6,677 3,995 2,682 135,054 25,120 64,441 3,610 41,883 5,736 July r......... 145,058 6,147 3,533 2,614 133,199 25,726 61,949 3,689 41,834 5,711 Aug.'........ 148,652 9,048 6,550 2,498 133,725 26,428 60,524 3,423 43,349 5,880 Sept.'........ 147,720 5,986 3,342 2,645 135,552 26,322 61,301 3,721 44,208 6,181 Oct.'......... 145,865 4,331 1,697 2,634 135,573 26,958 59,617 3,849 45,149 5,962 Nov.'........ 150,170 7,279 4,687 2,592 136,810 28,366 58,727 4,019 45,698 6.081 Dec.'......... 151,611 6,281 3,847 2,434 139,039 27,542 60,248 4,077 47,172 6,292 1975—Jan............. 151,005 6,546 3,876 2,669 138,495 27,870 58,821 4,152 47,652 5,965 Feb.®......... 151,276 4,792 2,191 2,601 140,657 28,936 58,695 4,246 48,779 5.827 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—Feb............ 83,963 4,004 1,557 2,448 78,013 13,785 40,922 2,211 21,094 1,946 Mar.r........ 92,910 7,396 5,252 2,143 83,572 15,799 43,273 2,487 22,013 1,941 Apr.'........ 94,292 5,621 3,456 2,165 86,483 16,043 44,919 2,835 22,685 2,188 May r......... 100,266 7,549 5,281 2,268 90,202 16,890 47,373 2,841 23,099 2,514 Juner......... 101,704 6,355 3,945 2,410 92,730 17,478 47,819 2,803 24,629 2,619 July'.......... 101,534 5,856 3,484 2,373 92,987 18,480 46,422 2,889 25,196 2,691 Aug.'........ 105,760 8,737 6,497 2,239 94,145 19,694 45,681 2,780 25,990 2,879 Sept.'........ 104,345 5,709 3,284 2,426 95,585 19,413 46,517 2,873 26,781 3,050 Oct.'......... 101,936 4,049 1,640 2,409 94,939 19,785 44,832 3,006 27,316 2,948 Nov.'........ 104,962 6,973 4,633 2,340 94,949 20,623 43,741 3,192 27,393 3,039 Dec.'........ 105,676 5,985 3,811 2,174 96,535 19,671 45,032 3,289 28,543 3,156 1975—Jan............. 105,643 6,222 3,835 2,387 96,341 20,425 43,108 3,370 29,437 3,080 Feb.35......... 103,983 4,448 2,148 2,300 96,648 20,794 42,575 3,431 29,848 2,888 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—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 3,561 2,612 949 65,617 11,886 36,468 812 16,452 2,126 July'.......... 69,197 3,046 2,205 840 63,974 12,486 34,575 718 16,195 2,177 Aug.'........ 70,382 3,599 2,858 741 64,496 12,790 33,942 666 17,097 2,287 Sept.r........ 70,965 2,860 2,087 774 65,596 12,436 34,959 829 17,372 2,509 Oct.'......... 68,123 1,325 502 823 64,462 12,386 33,608 887 17,581 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 Feb.®......... 67,038 1,818 1,023 796 63,250 13,246 31,641 848 17,515 1,970 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—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 1,024 May........... 49,654 3,693 44,825 9,285 26,994 8,546 1,135 June '......... 49,363 3,462 44,774 9,425 26,147 9,203 1,126 July'......... 48,158 2,958 44,061 9,932 24,698 9,432 1,138 Aug.'........ 49,406 3,507 44,677 10,529 24,512 9,637 1,222 Sept.r........ 50,075 2,774 45,960 10,305 25,720 9,937 1,339 Oct.'......... 47,968 1,235 45,421 10,234 25,233 9,954 1,312 Nov.r........ 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 Feb.?........ 46,019 1,697 43,244 10,615 22,575 10,055 1,077 IN BAHAMAS AND CAYMANS1 v Total, all currencies................................ 1972—Dec............ 12,642 1,486 214 1,272 10,986 661 4,322 170 1973—Dec............ 23,771 2,210 317 1,893 21,041 12,974 8,068 520 1974—Feb.'........ 25,657 1,874 167 1,707 23,253 14,226 9,026 530 Mar.'........ 28,446 3,360 1,973 1,386 24,475 15,404 9,071 611 Apr.'......... 28,778 2,390 956 1,434 25,765 16,086 9,679 623 May'......... 30,864 3,166 1,700 1,467 26,953 17,035 9,918 744 June'......... 31,219 2,264 818 1,446 28,168 17,643 10,524 787 July'......... 30,403 2,126 616 1,510 27,462 16,822 10,640 815 Aug.'........ 32,250 4,306 2,835 1,471 27,165 16,157 11,009 779 Sept.'........ 30,080 2,034 470 1,564 27,190 16,014 11,177 856 Oct.'......... 30,030 1,876 381 1,495 27,364 16,280 11,084 790 Nov.'........ 32,209 2,827 1,344 1,484 28,498 17,193 11,305 883 Dec.'........ 31,514 1,846 464 1,382 28,853 16,854 11,999 815 1975—Jan............. 33,085 2,740 1,111 1,629 29,508 16,864 12,643 838 Feb.*>........ 233,258 1,872 381 1,491 30,554 17,342 13,212 832 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1975 o 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 78,203 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 . 1972—Dec. .. .Total, all currencies 121,866 5,126 1,642 3,968 111.615 18,213 65,389 10,330 17,683 4,641 .1973—Dec.' 127,246 6,230 2,319 3,911 116,416 19,307 67,408 10,447 19,254 4,600 .1974—Feb.' 136,985 7,100 2,429 4,671 124,887 21,073 71,530 10,849 21,434 4,998 .............Mar.' 140,020 7,210 2,558 4.652 127,586 22,688 71,232 11,612 22.054 5,224 .............Apr.' 145,918 8,275 3,218 5,057 131,978 23,941 74,193 12,187 21,657 5,665 .............May ' 147,467 9,028 3,488 5,540 132,328 24,234 71,692 14,388 22,015 6,110 .............June' 145,057 10,129 4,373 5,757 128.616 25,313 66,855 15,030 21,418 6,312 .............July' 148,652 9,352 4,056 5,296 132,774 26,007 68,772 16,304 21,690 6,527 .............Aug.' 147,720 9,981 5,058 4,923 131,016 26,337 66,071 17,488 21,121 6,723 .............Sept.' 145,865 10,408 5,812 4,596 128,910 26,619 62,606 18,171 21,514 6,548 .............Oct.r 150,171 11,797 6,145 5.652 131,619 27,717 63,596 19,979 20,327 6,755 .............Nov.' 151,611 11,764 5,590 6,173 132,915 26,903 65,793 20,133 20,187 6,932 .............Dec.' 151,005 11,786 6,310 5,476 132,688 26,988 64,144 21,631 19,924 6,532 . 1975—Jan. 151,276 11,812 6,408 5,404 132,966 28,154 63,326 21,899 19,587 6,499 .............Feb.p 54,878 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 . 1972—Dec. .Payable in U.S. dollars 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 .1973—Dec.’ 84,649 5,725 2,166 3,559 76,769 13,329 44,462 8,045 10,933 2,155 .1974--Feb.» 93,410 6,528 2,227 4,301 84,380 15,071 48,886 8,475 11,947 2,501 .Mar. 94,921 6,640 2,378 4,262 84,619 15,783 47.847 9,195 12,794 2,662 . Apr.1 100,714 7,685 3,021 4,664 89,848 16,694 50.848 9,817 12,490 3,181 .May* 102,302 8,414 3,279 5,135 90,359 17,070 48,909 11,630 12,750 3,529 June1 102,432 9,494 4,160 5,334 89,264 18,438 45,768 12,337 12,721 3,675 .July' 106,842 8,719 3,865 4,853 94,178 19,456 48,394 13,508 12,821 3,945 • Aug. 106,004 9,294 4,833 4,461 92,630 19,599 46,020 14,533 12,478 4,080 .Sept. 103,893 9,864 5,609 4,255 90,136 19,481 42,690 15,076 12,889 3,893 . Oct.' 107,323 11,111 5,919 5,192 92,233 20,242 43,147 16,789 12.054 3,979 . Nov.' 107,596 11,218 5,423 5,795 92,428 19,292 43,674 17,392 12,070 3,950 Dec. 108,055 11,323 6,158 5,164 92,957 19,969 42,851 18,291 11,846 3,776 . 1975—Jan. 105,738 11,314 6,260 5,053 90,797 20,079 40,625 18,656 11,437 3,628 .............Feb.p IN UNITED KINGDOM 43,467 1,453 113 1,340 41,020 2,961 24.596 6,433 7.030 994 .1972—Dec. .. .Total, all currencies 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .1973—Dec. 63,585 2,573 269 2,303 58,956 4,193 35,355 8,295 11 ,112 2,057 .1974--Feb. 68,076 3,167 353 2,814 63.096 4,587 37,700 8,592; 12,217 1,813 , Mar. 68,959 3,123 409 2,714 63,914 4,975 36,524 9,240 13,175 1,922 Apr. 71,982 3,729 749 2,979 66,156 4,890 39.596 9,273 12,398 2,097 May 71,305 3.744 606 3,138 65,429 4,913 36,711 11,289 12,516 2,132 June 69,197 3,439 611 2,828 63,557 5,099 r34,393 rl 1,543 12.521 2,201 July 70,382 3,701 713 2,988 64,309 4,794 33,920 12,737 12,858 2,373 Aug. 70,965 3,503 635 2,867 64,919 5,428 33,766 13,544 12,181 2,543 Sept. 68,123 3,227 683 2,544 62,621 5,237 30,621 14,051 12,712 2,275 Oct. 69,137 4,376 889 3,487 62,397 5,071 30,352 15,454 11.521 2,363 Nov. 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 Dec. 68,451 3,804 873 2,931 62,360 4,567 30,266 16,419 11,108 2,287 .1975—Jan. 67,038 3,826 913 2,912 61.096 4,693 29.207 16,517 10,677 2,117 .............Feb.p 30,810 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 .1972—Dec. .Payable in U.S. dollars '39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 '870 .1973—Dec. '40,964 2,346 243 2,103 37,579 2,729 21,330 6,476 7,044 '1,040 .1974--Feb. 45,604 2,927 329 2,598 41,708 3,063 24,164 6,830 7,650 969 .Mar. 46,323 2,878 384 2,494 42,453 3,234 23.207 7,401 8,612 992 .Apr. 49,301 3,481 724 2,757 44,625 3,083 26,010 7,468 8,064 1,195 .May 48,970 3,516 579 2,937 44,214 3.255 23,669 9,137 8,155 1,239 .June 48,018 3.176 568 2,608 43,528 3,364 '22,388 '9,450 8,326 1,314 .July 49,481 3,448 692 2,756 44,654 3,278 22,558 10,437 8,382 1,380 Aug. 50,212 3.177 605 2,572 45,550 3,667 22,818 11,035 8.030 1,486 Sept. 48,314 2,988 651 2,337 44,033 3,690 20,203 11,444 8,696 1,294 Oct. 49,668 4,037 865 3,172 44,256 3,557 20,200 12,808 7,691 1,375 Nov. 49,666 3.744 484 3,261 44,594 3.256 20,526 13,225 7,587 1,328 Dec. 48,490 3,599 854 2,744 43,578 3,172 19,061 13,736 7,609 1,313 .1975—Jan. 46,698 3,614 895 2,719 41,900 3,266 17,673 13,932 7,029 1,184 .............Feb.p IN BAHAMAS AND CAYMANS i 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 .1973—Dec. 25,657 2,244 22,979 5,587 15,448 1,944 435 . 1974'-Feb. 28,446 2,351 25,553 6,608 16,853 2,091 543 .............Mar. 28,778 2,283 26,017 7,102 16,809 2,106 479 .............Apr. 30,864 2,567 27,706 8,255 17,217 2,233 591 .............May 31,219 2,855 27,725 7,642 17,593 2,490 639 .............June 30,403 3,684 26,039 7,663 16,223 2,153 681 .............July 32,250 2,842 28,670 8,079 18,403 2,188 738 .............Aug. 30,080 3,721 25,626 7,072 16,259 2,295 733 .............Sept. 30,030 4,270 24,995 7,211 15,650 2,135 765 .............Oct. 32,209 4,322 27,107 8,538 16,427 2,141 779 .............Nov. 31,514 4,598 26,138 7,702 16,426 2,011 778 .............Dec. 33,085 4,992 27,341 8,269 16,852 2,220 752 . 1975—Jan. 233,258 5,045 27,426 8,975 16,207 2,244 787 .............Feb.p Digitized foFro rF RnoAteSs EseRe p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 i ments 1 1972. 325 50,934 215,530 1973. 251 52,070 217,068 1969..................... 1,491 1,062 161 183 86 663 534 1974. 418 55.600 16.838 1970..................... 1,141 697 150 173 121 372 443 1974—Apr.. 517 52,642 17,026 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 May. 429 54,195 17,021 J J u u n ly e . . . , 3 3 3 8 0 4 5 5 4 4 , , 4 3 4 1 2 7 1 1 6 7 , , 9 0 6 1 4 4 19722 / 1 1 2 , , 9 3 6 7 5 4 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 3 0 4 7 0 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 Aug.. 372 53,681 16,917 1973'................... 3,160 2,586 37 427 109 1,116 770 Sept.. 411 53,849 16,892 Oct... 376 54,691 16,875 1974—Feb. r.... 3,225 2,601 65 361 198 1,219 861 Nov.. 626 55,908 16,865 Mar.r.... 3,678 3,011 99 348 219 1,372 1,027 Dec.. 418 55.600 16.838 Apr.r.. .. 3,581 2,967 60 346 209 1,487 930 May r.. . . 3,669 3,037 76 329 227 1,441 980 1975—Jan... 391 58,001 16,837 Juner.. . . 3,661 3,049 62 369 181 1,418 927 Feb. . 409 60,864 16,818 July r___ 3,771 3,223 74 341 133 1,441 828 Mar.. 402 60,729 16,818 Aug.r___ 3,504 2,941 51 369 144 1,436 872 Apr.. 270 60,618 16,818 Sept.r.... 3,073 2,491 30 362 189 1 ,194 864 Oct.r___ 2,696 2,130 25 324 216 1,118 835 Nov.r___ 2,996 2,378 15 325 277 1,283 942 1 Marketable U.S. Treasury bills, certificates of in­ Dec.......... 3,293 2,572 56 403 261 1,340 943 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign 1975—Jan.25___ 3,227 2,519 45 316 348 1,134 1,113 currencies. Feb.p___ 3,328 2,512 48 356 411 1,076 1,134 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 1971—Mar........................ 2,437 1,975 462 4,515 3,909 232 374 June....................... 2,375 1,937 438 4,708 4,057 303 348 Sept........................ 2,564 2,109 454 4,894 4,186 383 326 Dec.1 1..................... J \ 2 2, , 7 7 6 0 3 4 2 2, , 3 2 0 2 1 9 4 4 7 63 5 5 5 , ,1 0 8 0 5 0 4 4 , ,4 5 6 35 7 2 3 8 18 9 2 3 4 33 4 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 J 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........................ 5,747 4,690 1,057 10,725 9,748 419 558 Dec.*5..................... 5,929 4,909 1,020 11,286 10,209 461 616 1 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

MAY 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 1973 1974 1973 1974 Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec.p Europe: Austria......................................................... 3 4 12 18 21 17 16 17 15 25 Belgium-Luxembourg.............................. 136 226 405 489 516 106 153 139 114 131 Denmark.................................................... 9 17 18 22 20 46 37 27 25 40 Finland....................................................... 7 8 9 12 16 44 42 80 91 120 France......................................................... 168 161 204 192 235 310 413 537 491 458 Germany, Fed. Rep. of.......................... 236 238 222 246 314 284 337 345 322 340 Greece......................................................... 40 21 28 28 40 51 87 76 69 65 Italy............................................................. 116 133 143 150 143 239 330 409 431 418 Netherlands................................................ 125 114 104 113 107 112 103 126 144 147 Norway....................................................... 9 9 8 10 9 18 22 35 32 36 13 24 17 20 19 50 112 101 69 81 Spain........................................................... 77 68 56 57 66 244 414 420 424 382 Sweden........................................................ 48 43 52 40 38 71 74 106 97 89 Switzerland................................................ 103 94 114 106 136 101 90 78 154 136 Turkey......................................................... 18 26 28 38 25 34 41 46 41 45 United Kingdom...................................... 932 1,123 1,219 1,429 1,235 1,543 1,835 1,869 1,768 1,855 Yugoslavia.................................................. 28 31 36 34 60 49 30 41 39 43 Other Western Europe............................ 3 3 6 7 5 15 19 23 20 22 Eastern Europe.......................................... 31 26 31 77 66 104 79 97 90 142 Total.................................................... 2,103 2,371 2,712 3,087 3,071 3,437 4,232 4,571 4,438 4,574 Canada............................................................ 255 320 294 297 290 1,245 1,526 1,573 1,570 1,617 Latin America: Argentina.................................................... 22 18 18 28 36 47 52 52 59 69 Bahamas..................................................... 419 206 307 325 281 633 760 992 518 594 Brazil........................................................... 64 78 125 160 119 230 409 523 419 460 Chile............................................................. 20 6 9 14 20 42 78 64 124 103 Colombia.................................................... 9 18 22 13 14 40 44 51 49 50 Cuba............................................................ * * * * * 1 1 1 1 1 Mexico......................................................... 44 72 71 64 64 235 260 263 287 292 Panama....................................................... 13 14 19 21 28 120 178 187 114 132 Peru............................................................. 15 17 11 15 13 47 65 60 40 43 Uruguay...................................................... 2 3 2 2 2 5 6 5 6 5 Venezuela................................................... 31 45 36 53 49 134 136 171 190 193 Other L.A. republics................................ 51 45 60 63 83 134 172 172 182 193 Neth. Antilles and Surinam................... 6 5 6 8 25 12 12 16 14 20 Other Latin America................................ 22 37 59 50 81 214 158 136 169 148 Total.................................................... 719 564 745 818 815 1,892 2,330 2,692 2,169 2,302 Asia: China, People’s Republic of (China Mainland).............................................. 42 20 39 23 17 11 8 3 8 19 China, Rep. of (Taiwan)......................... 34 52 72 72 94 121 184 119 127 137 Hong Kong................................................ 41 24 19 19 19 48 65 68 64 64 India............................................................ 14 14 13 10 7 37 36 31 37 37 Indonesia.................................................... 14 13 22 38 49 54 51 67 81 85 Israel............................................................ 25 31 39 40 51 38 38 37 53 44 Japan........................................................... 297 374 374 352 346 888 1,212 970 1,109 1,154 Korea........................................................... 37 38 45 66 75 105 109 124 123 201 Philippines.................................................. 17 9 19 28 25 73 87 86 108 94 Thailand..................................................... 6 7 7 10 10 28 31 43 23 24 Other Asia.................................................. 178 273 401 431 547 239 264 313 311 386 Total.................................................... 705 855 1,050 1,089 1,240 1,642 2,087 1,860 2,043 2,246 Africa: Egypt........................................................... 10 35 12 6 3 9 9 13 16 18 South Africa.............................................. 14 22 24 35 43 62 69 85 90 101 Zaire............................................................. 19 21 15 17 18 18 20 17 13 19 Other Africa.............................................. 125 134 156 114 129 127 155 195 205 240 Total.................................................... 168 212 206 172 193 216 253 310 325 378 Other countries: Australia..................................................... 118 134 94 128 132 97 110 117 134 120 All other..................................................... 12 22 24 32 30 25 31 39 44 49 Total................................................... 130 156 117 160 162 123 142 157 178 169 International and regional.......................... * 29 63 125 159 * 1 1 1 * Grand total........................................ 4,080 4,507 5,188 5,747 5,929 6,556 10,570 11,165 10,725 11,286 Note.—Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks, and intercompany accounts mercial concerns and other nonbanking institutions in the United States. 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. □ MAY 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th l e l r 1970—Dec. • 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar.. 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June. 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept.. 2,939 3,019 135 672 765 178 60 597 133 319 85 75 Dec.1 3 3 , , 1 1 3 5 8 9 3 3, , 0 1 6 1 8 8 1 1 2 28 8 7 7 0 0 5 4 7 7 6 1 1 7 1 1 7 74 4 6 6 0 0 6 6 5 5 2 3 1 1 4 3 1 6 3 3 2 2 7 5 8 8 6 6 8 85 4 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 Dec.1 3 3, , 6 5 3 4 1 0 3 3, , 4 3 0 1 9 2 1 19 6 1 3 7 7 1 5 5 5 7 7 7 93 5 1 1 8 8 4 7 6 64 0 6 6 5 9 8 2 1 1 5 3 6 4 4 3 0 9 6 5 8 8 6 7 1 11 0 1 9 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.. 3,355 4,055 370 702 992 181 145 776 114 523 118 133 Dec.35 3,514 4,231 364 636 1,021 187 143 1,015 107 505 125 129 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 money3 60-90 moneys 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—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 3.38 4.87 5.94 5.87 7.00 Apr............... 6.59 6.68 9.41 9.26 7.50 7.09 8.34 4.62 5.53 4.13 6.50 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-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 $29,563 million and $29,254 million, respectively, on Feb. 28, 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

MAY 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 Apr. 30, 1975 Rate as of Apr. 30, 1975 Country Country Per Month Per Month cent effective cent effective Argentina........................ 18.0 Feb. 1972 Italy..................... 8.0 Dec. 1974 Austria............................ 6.0 Apr. 1975 Japan................... 8.5 Apr. 1975 Belgium............................ 7.0 Apr. 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......................... 8.0 Apr. 1975 Sweden................ 7.0 Aug. 1974 France.............................. 10.0 Apr. 1975 Switzerland........ 5.0 Feb. 1975 Germany, Feb. Rep. of. 5.0 Mar. 1975 United Kingdom 9.75 Apr. 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% Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5 Vi 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—Apr............ 148.41 5.3345 2.5686 103.356 16.496 20.541 39.594 12.711 238.86 .15720 .36001 May.......... 148.44 5.5655 2.6559 103.916 17.012 20.540 40.635 12.841 241.37 .15808 .35847 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 Apr............ 134.16 5.9355 2.8433 98.913 18.119 23.806 42.092 12.686 237.07 .15767 .34224 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—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 Apr........... 43.797 8.0000 41.291 132.66 20.049 4.0596 147.01 1.7756 25.171 39.080 237.07 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

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman George W. Mitchell, Vice Chairman John E. Sheehan Jeffrey M. Bucher Robert C. Holland Henry C. Wallich Philip E. Coldwell OFFICE OF MANAGING DIRECTOR OFFICE OF BOARD MEMBERS OFFICE OF MANAGING DIRECTOR FOR FOR OPERATIONS RESEARCH AND ECONOMIC POLICY Thomas J. O’Connell, Counsel to the John M. Denkler, Deputy Managing Director Chairman J. Charles Partee, Managing Director * Levon H. Garabedian, Assistant Managing Robert Solomon, Adviser to the Board Stephen H. Axilrod, Adviser to the Board Director Joseph R. Coyne, Assistant to the Board Samuel B. Chase, Jr., Adviser to the Board Gordon B. Grimwood, Assistant Director John S. Rippey, Assistant to the Board Arthur L. Broida, Assistant to the Board and Program Director for Jay Paul Brenneman, Special Assistant to the Murray Altmann, Special Assistant to the Contingency Planning Board Board William W. Layton, Director of Equal John J. Hart, Special Assistant to the Board Normand R. V. Bernard, Special Assistant Employment Opportunity Frank O’Brien, Jr., Special Assistant to the to the Board Brenton C. Leavitt, Program Director for Board Banking Structure Donald J. Winn, Special Assistant to the Peter E. Barn a, Program Director for Board Bank Holding Company Analysis DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION Lyle E. Gramley, Director John D. Hawke, Jr., General Counsel James L. Pierce, Associate Director John Nicoll, Deputy General Counsel Peter M. Keir, Adviser Baldwin B. Tuttle, Assistant General James L. Kichline, Adviser Counsel Stanley J. Sigel, Adviser DIVISION OF FEDERAL RESERVE BANK Charles R. McNeill, Assistant to the Joseph S. Zeisel, Adviser OPERATIONS General Counsel James B. Eckert, Associate Adviser Allen L. Raiken, Adviser Edward C. Ettin, Associate Adviser Ronald G. Burke, Director Gary M. Welsh, Adviser John H. Kalchbrenner, Associate Adviser James R. Kudlinski, Associate Director Robert J. Lawrence, Associate Adviser tE. Maurice McWhirter, Associate Director OFFICE OF SAVER AND CONSUMER AFFAIRS Eleanor J. Stockwell, Associate Adviser William H. Wallace, Associate Director Robert M. Fisher, Assistant Adviser Walter A. Althausen, Assistant Director Frederic Solomon, Assistant to the J. Cortland G. Peret, Assistant Adviser Harry A. Guinter, Assistant Director Board and Director Stephen P. Taylor, Assistant Adviser Thomas E. Mead, Assistant Director Janet O. Hart, Deputy Director Helmut F. Wendel, Assistant Adviser P. D. Ring, Assistant Director Robert S. Plotkin, Assistant Director Levon H. Garabedian, Assistant Director A 76 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. Allison, Secretary Ralph C. Bryant, Director Glenn L. Cummins, Assistant Director Griffith L. Garwood, Assistant Secretary John E. Reynolds, Associate Director Warren N. Min ami, Assistant Director ^Robert Smith III, Assistant Secretary Robert F. Gemmill, Adviser Robert J. Zemel, Assistant Director Reed J. Irvine, Adviser DIVISION OF BANKING SUPERVISION Helen B. Junz, Adviser DIVISION OF PERSONNEL AND REGULATION Bernard Norwood, Adviser Samuel Pizer, Adviser Keith D. Engstrom, Director Brenton C. Leavitt, Director George B. Henry, Associate Adviser Charles W. Wood, Assistant Director Frederick R. Dahl, Assistant Director Charles J. Siegman, Assistant Adviser Jack M. Egertson, Assistant Director Edwin M. Truman, Assistant Adviser OFFICE OF THE CONTROLLER John N. Lyon, Assistant Director John T. McClintock, Assistant Director John Kakalec, Controller Thomas A. Sidman, Assistant Director Tyler E. Williams, Jr., Assistant Controller William W. Wiles, Assistant Director John E. Ryan, Adviser DIVISION OF ADMINISTRATIVE SERVICES Walter W. Kreimann, Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director * Temporary appointment. $On loan from the Federal Reserve Bank of Dallas. fOn leave of absence. A 77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 Federal Open Market Committee Arthur F. Burns, Chairman Alfred 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 Altmann, 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 Edw ard G. Guy, Deputy General Counsel Richard G. Davis, Associate Economist John N icoll, Assistant General Counsel Ralph T. Green, Associate Economist J. C harles P artee, Senior Economist John Kareken, Associate Economist Stephen H. A xilrod, Economist James L. Pierce, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist Lyle E. Gramley, Economist Karl 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 (Vacancy), 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 79 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 Ronald B. Gray 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 11753; 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 80 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 address, $.85 each. a charge is indicated, remittance should accompany 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, $.85 each. possessions, and in Bolivia, Canada, Chile, Co­ 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 one address, $.40 each. Salvador, Uruguay, and Venezuela; 10 or more of 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 to one address, $.85 each. Federal Reserve Chart Book on Financial and 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 or more to one address, $1.75 each. Regulations of the Board of Governors of the 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 each; 10 or more to one address, $2.50 each. Supplement to Banking and Monetary Statistics. 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. 1972. 487 pp. $4.00 each; 10 or more to one pp. $.35. Sec. 12. Money Rates and Securities address, $3.60 each. Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. 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 81 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. New Series for Large Manufacturing Corpora­ Printed in Full in the Bulletin 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. (Except for Staff Papers, Staff Economic Studies, and Recent Developments in the U.S. Balance of some leading articles, most of the articles reprinted do Payments. 4/74. not exceed 12 pages.) Capacity Utilization for Major Materials: Re­ Seasonal Factors Affecting Bank Reserves. 2/58. vised Measures. 4/74. Measures of Member Bank Reserves. 7/63. Numerical Specifications of Financial Variables Research on Banking Structure and Perform­ and Their Role in Monetary Policy. 5/74. ance, Staff Economic Study by Tynan Smith. Banking and Monetary Statistics, 1973. Selected 4/66. series of banking and monetary statistics for 1973 A Revised Index of Manufacturing Capacity, only. 3/74 and 7/74. Staff Economic Study by Frank de Leeuw with Inflation and Stagnation in Major Foreign In­ Frank E. Hopkins and Michael D. Sherman. 11/66. dustrial Countries. 10/74. 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 82 Federal Reserve Bulletin □ May 1975 Index to Statistical Tables References are to pages A-2 through A-75 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 Demand deposits: Agricultural loans of commercial banks, 16, 18 Adjusted, commercial banks, 11, 13, 17 Assets and liabilities (See also Foreigners): Banks, by classes, 14, 17, 20, 21 Banks, by classes, 14, 16, 17, 18, 30 Ownership by individuals, partnerships, and cor­ Federal Reserve Banks, 10 porations, 24 Nonfinancial corporations, current, 41 Subject to reserve requirements, 13 Automobiles: Turnover, 11 Consumer instalment credit, 45, 46, 47 Deposits (See also specific types of deposits): Production index, 48, 49 Accumulated at commercial banks for payment of personal loans, 24 BANK credit proxy, 13 Banks, by classes, 14, 17, 20, 21, 30 Bankers balances, 16, 17, 20 Federal Reserve Banks, 10, 72 (See also Foreigners, claims on, and liabilities to) 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 Federal agency obligations, 9, 10, 11 Brokerage balances, 69 Federal finance: Business expenditures on new plant and equipment, 41 Receipts and outlays, 32, 33 Business indexes, 50 Treasury operating balance, 32 Business loans (See Commercial and industrial loans) Federal funds, 5, 16, 18, 21, 27 Federal home loan banks, 37, 38 CAPACITY utilization, 50 Federal Home Loan Mortgage Corporation, 37, 42, 43 Capital accounts: Federal Housing Administration, 42, 43, 44 Banks, by classes, 14, 17, 22 Federal intermediate credit banks, 37, 38 Federal Reserve Banks, 10 Federal land banks, 37, 38, 42 Central banks, 60, 75 Federal National Mortgage Assn., 37, 38, 42, 43, 44 Certificates of deposit, 22 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 10 Commercial banks, 13, 16 U.S. Govt, securities held, 2, 10, 11, 34, 35 Weekly reporting banks, 18, 23 Federal Reserve credit, 2, 4, 10, 11 Commercial banks: Federal Reserve notes, 10 Assets and liabilities, 13, 14, 16, 17, 18 Federally sponsored credit agencies, 37-, 38 Consumer loans held, by type, 45 Finance companies: Deposits at, for payment of personal loans, 24 Loans, 18, 46, 47 Loans sold outright, 25 Paper, 25, 27 Number, by classes, 14 Financial institutions, loans to, 16, 18 Real estate mortgages held, by type of holder and Float, 2 property, 42—44 Flow of funds, 56, 57 Commercial paper, 23, 25, 27 Foreign: Condition statements (See Assets and liabilities) Currency operations, 9, 10 Construction, 50, 51 Deposits in U.S. banks, 3, 10, 17, 21, 72 Consumer credit: Exchange rates, 75 Instalment credit, 45, 46, 47 Trade, 59 Noninstalment credit, 45 Foreigners: Consumer price indexes, 50, 53 Claims on, 66, 67, 68, 72, 73, 74 Consumption expenditures, 54, 55 Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 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 DEBITS to deposit accounts, 11 HOUSING permits, 50 Debt (See specific types of debt or securities) Housing starts, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A 84 The Federal Reserve System B o u n d aries o f F ed eral R eserv e D istricts an d T h eir B ran ch T errito ries — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facilities Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

G u id e to T ab u lar P resen tatio n 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 IP 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 S tatistical R eleases 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