Federal Reserve Bulletin, 1975-07

JULY 1975 FEDERAL RESERVE B U LLET IN 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 7 □ VOLUME 61 □ JULY 1975 CONTENTS 393 Recent Trends in Federal Budget Policy A 1 Financial and Business Statistics 405 Quarterly Survey of Bank Policies with A 1 Contents Respect to Credit Use A 2 U.S. Statistics A 58 International Statistics 407 Membership of the Board of Governors of the Federal Reserve System A 78 Board of Governors and Staff 409 Statements to Congress A 80 Open Market Committee and Staff; Federal Advisory Council 433 Record of Policy Actions of the Federal Open Market Committee A 81 Federal Reserve Banks and Branches 440 Law Department A 82 Federal Reserve Board Publications 459 Announcements A 84 Index to Statistical Tables 461 Industrial Production A 86 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation Statistical Releases: Reference PUBLICATIONS COMMITTEE J. Charles Partee Lyle E. Gramley John M. Denkler Ralph C. Bryant Joseph R. Coyne John D. Hawke, Jr. Frederic Solomon James L. Kichline, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy This article was prepared in the Government problems of both short- and long-term budgetary Finance Section of the Division of Research and control. Statistics. This article sketches the nature and dimen­ sions of these longer-run fiscal trends, describes Prospects for a more effective Federal fiscal the recent enactment of tax reductions, and policy were enhanced with the enactment of the discusses in some detail the new budget control Congressional Budget and Impoundment Con­ procedures that offer considerable promise for trol Act of 1974. This legislation requires the improved fiscal policy. Congress to establish over-all Federal budget targets—for receipts, expenditures, and the re­ sulting surplus or deficit—that appear to be TRENDS IN consistent with the broad requirements of na­ FEDERAL SPENDING tional economic policy. Previously, congres­ sional budget machinery has tended to encour­ Within the last 10 years Federal outlays have age a fragmented focus on specific Federal ex­ expanded at an unusually fast pace—from $118 penditure and tax programs, with insufficient billion in fiscal 1965 to about $325 billion in emphasis on the economic consequences of the the fiscal year just ended. This represents an budget as a whole. Thus, the conscious deter­ increase of 175 per cent, or an average annual mination of an appropriate, general Federal fis­ growth rate of about 11 per cent. In contrast, cal policy has seldom been an integral part of Federal revenues have increased by only 140 the congressional budget process. per cent during the period, with the growth of Official implementation of the new budget receipts varying considerably from year to year. machinery is not scheduled until the fiscal year The recession of this year, in particular, has 1977. However, in order to gain needed experi­ dampened growth of receipts while accelerating ence for next year, the Congress is approaching that of expenditures. the budget for the current fiscal year as if the While these budget totals provide a useful new law were already in effect. New congres­ general impression of the thrust of budget ac­ sional budget committees have been established, tivity, they conceal a number of rather diverse and they are currently engaged in the task of influences on the Federal budget. In the latter specifying appropriate fiscal goals. half of the 1960’s, for example, growth in This new approach to fiscal policy faces ob­ Federal outlays was dominated by the war in vious challenges. It is being initiated against the Vietnam and by the inauguration of new social backdrop of the most serious economic reces­ welfare programs. Expenditure growth in the sion since before World War II. In addition, first half of the 1970’s, on the other hand, while the need to curb inflationary pressures persists, reflecting the continued evolution of the social and at the same time, considerable differences programs initiated earlier, has also been strongly of opinion remain regarding the extent to which reinforced by the effects of accelerated inflation. fiscal measures should be used to promote en­ Most recently, the recession has induced a sub­ ergy policy. Finally, rapid growth in Federal stantial volume of compensatory outlays. expenditures stemming from the sweeping so­ Chart 1 shows the growing importance of cial legislation of the 1960’s is intensifying social outlays in the Federal budget over the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 Federal Reserve Bulletin □ July 1975 past 10 years and the resulting changes in im­ of aggregate economic activity. As shown, the portance of other key budget items. The ratio of Federal outlays to gross national product proportion of outlays allocated to national de­ has increased somewhat in 1975. However, this fense has declined steadily, from 42 per cent increase is accounted for largely by the surge in fiscal 1965 to 27 per cent in fiscal 1975. Even in spending induced by the downturn in eco­ though defense expenditures in fiscal 1965 had nomic activity. The final line of Table 1 adjusts not yet reflected much of the build-up associated for this factor and presents the ratio of expendi­ with the war in Vietnam, the data indicate that tures to GNP under conditions of sustained, high the proportion of expenditures for national de­ employment. These data would indicate that the fense today is substantially lower than in the share of Federal expenditures has tended to be period just prior to our Vietnam involvement. stable during the first half of the 1970’s. In the area of social outlays, the most signifi­ The increased relative importance of Federal cant gains for the period have occurred in ex­ spending for social programs, while reflecting penditures for income security. This functional the evolution of national priorities, introduces category includes social security and unem­ problems of control in the management of Fed­ ployment insurance programs, public assist­ eral fiscal policy. Spending for most of these ance, and supplements to low-income families programs is open-ended in character since it is for food and housing. As a proportion of total funded under a so-called “entitlement author­ outlays, this category has increased from 22 per ity.” When the Congress creates such pro­ cent in fiscal 1965 to 33 per cent in fiscal 1975. grams, it specifies levels of benefit payments and Other significant increases have occurred in the defines the population eligible to receive them. areas of health and education. As a result an automatic entitlement, or right, Table 1 provides additional perspective on the to benefits is created whenever eligibility re­ shift in relative spending priorities over the quirements are met. Public assistance, food period and relates Federal spending to the level stamps, and certain unemployment compensa- CHART1 Functional classification of budget outlays Per cent 100 Other Revenue-sharing Veterans Interest Health Education Income security Commerce & transportation National defense 1966 1968 1970 1972 1974 1976 Fiscal data from The Budget of the United States Government, Fiscal Year 1976 (Feb. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy 395 TABLE 1 Federal outlays as per cent of GNP Item 1970 1971 1972 1973 1974 1975 1976'' security, health, veterans) 7.6 8.9 9.5 9.5 9.8 11.3 11.1 National defense ..................... 8.3 7.6 7.0 6.1 5.8 5.9 5.9 Net interest ................................. 1.5 1.5 1.4 1 4 1.6 1.6 1.6 Other ............................................. 3.2 2.9 3.1 3.1 2.7 3.1 3,3 Total outlays ............................. 20.6 20.9 21.0 20.1 19.9 21.9 21.9 Memo Full employment expenditures/fullemployment GNP1 20.0 19.6 19.7 20.4 19.7 20.0 20.5 pAs estimated in the Budget of the United States Government, Fiscal Year 1976 (Feb. 1975). 1 National income accounts basis. tion and veterans programs are examples of by legislative action. However, because income transfer payments funded by this type of au­ security programs have generally been estab­ thority. lished to meet long-run needs and are often With the substantial growth in these types of financed by specifically earmarked taxes, any programs, the share of total Federal spending major changes in the scope of these programs that is mandatory or automatic in the short run would entail prolonged legislative consid­ has become increasingly important. In this sense eration. It is true, of course, that the Congress these programs, and a number of others, are would also be subjected to substantial pressures sometimes described as “uncontrollable.” Over if it attempted to make substantial cuts in the the past 5 years the share of Federal outlays controllable sector of the budget. that fall in this uncontrollable category has in­ Outlays in the sectors of the Federal budget creased from about 65 per cent to nearly 75 per that do require annual appropriations have, of cent. The payment of interest on the public debt course, been greatly inflated over the past dec­ is another spending category that responds au­ ade by the general advance in prices. Although tomatically to external events without the need benefit payments in Federal social programs are for explicit congressional action and that is typically legislated in nominal dollars, they too included in the uncontrollable category. Also have been strongly affected by inflation, since payments under long-term contracts for defense Congress generally responds to the pinch of and public works, once obligated, may be un­ higher prices by liberalizing benefit payments. controllable for extended periods. In terms of Moreover, in recent years, the Congress has the various functional budget categories, more turned increasingly to indexation as a means of than 90 per cent of the outlays for income keeping benefit payments more current with security, health, and veterans benefits are deter­ rising prices. Federal retirement pay, social se­ mined by established legislation. And, of curity, and several other types of income main­ course, 100 per cent of the interest payment on tenance programs are now all tied to the move­ the public debt falls in this category. In contrast, ment of the consumer price index. only about 40 per cent of defense-related outlays One of the important implications of this can be classified as “uncontrollable” in that trend toward indexation of expenditures is that they do not require new congressional appro­ it tends to blunt the restrictive effects of the priations each year. so-called “built-in stabilizers” in the Federal Of course, it is misleading to assert that any budget. Government spending on unemploy­ budget outlay is wholly uncontrollable, since the ment benefits and other income maintenance Congress may change any item in the budget programs is generally expected to shrink during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin □ July 1975 periods of expanding economic activity and TABLE 2 rising employment, and thus helps to temper Effective income tax rates for individuals inflationary pressures. With indexation, how­ ever, spending in these areas tends to be main­ Calendar year Individuals1 tained during periods of inflation, which creates 1970 .............................................................................. 11.9 a problem when inflation is being stimulated by 1971 .............................................................................. 11.3 a general overheating of the economy. Most 1972 .............................................................................. 11.2 1973 .............................................................................. 11.8 recently, however, with inflation and underuti­ 1974 .............................................................................. 12.7 lization of resources occurring simultaneously, 1 Calculated on a cash-flow basis as the ratio of (tax receipts indexation in the various income transfer pro­ net of refunds) to (personal income less transfer payments). The 1970 rate has been adjusted to remove the effect of the grams has tended to cushion the fall of purchas­ surtax, since its inclusion would overstate the impact of the ing power, and thus to moderate declining eco­ 1971 Act. Also in 1972, an $8.0 billion adjustment was made for overwithholding, since its inclusion would understate the nomic activity. impact of the 1971 Act in 1972. In any event, the recent combination of re­ cession and inflation has strongly accentuated of inflation, these fixed-dollar allowances con­ the growth in Federal outlays. As a result, in stitute an increasingly smaller share of the total ; the fiscal year just ended, outlays expanded by thus an increasingly greater share of income nearly one-fifth, accounting in the process for becomes subject to tax. Second, when inflation approximately two-fifths of the over-all growth causes nominal incomes to grow, the progres­ in Federal spending since the beginning of the sive character of the income tax structure forces 1970’s. A slowing in the growth of budget taxpayers into higher marginal tax brackets; as outlays is now projected for the current fiscal a result, tax liabilities rise faster than taxable year, due both to an expected, further abatement incomes. of inflation and to a projected moderation in This second influence affects taxpayers across outlays for unemployment insurance as eco­ a wide range of income levels, but the first factor nomic activity improves. In addition, the Pres­ exerts its greatest percentage impact on individ­ ident’s program calls for explicit curbs on uals in lower tax brackets. Low-income families spending growth. Since, however, the bulk of are most affected because tax allowances stated Federal outlays are now mandatory under exist­ in fixed-dollar terms bulk larger as a share of ing laws, the possibilities for sizable short-range their total incomes. In addition, individuals with cutbacks are quite limited. higher income levels are more likely to itemize their deductions, the dollar value of which tends to rise somewhat in response to inflation. In the case of corporations, the impact of IM PACT OF INFLATION inflation on effective tax rates is of a different ON FEDERAL RECEIPTS character. Because corporate accounting proce­ In addition to their impact on outlays, recent dures often do not allow adequately for rising trends in economic activity have also exerted replacement costs, higher recorded corporate pervasive effects on the course of Federal re­ profits frequently exaggerate available internal ceipts. Most importantly, inflation has tended funds during periods of inflation. Despite to increase tax receipts by more than the gain mounting corporate cash needs in such periods, in private incomes. tax liabilities remain at high levels. The experience of 1973-74 illustrates the A corporate cash squeeze due to high tax influence of inflation on receipts. In those years liabilities can occur in two ways. First, since effective tax rates on incomes of individuals rose deductions for depreciation are recorded on a significantly (Table 2). This rise reflects two historical cost basis, the real cost of capital factors. First, personal exemptions as well as consumption is underestimated. Second, when the legislated minimum and maximum standard prices are rising steeply, many corporations deductions are stated in fixed-dollar terms; when show substantial “paper profits” on inventories nominal incomes are pushed higher in the course that are valued without adequate regard for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy 397 replacement costs. Real corporate profits have CHART 2 thus tended to be overstated because of depre­ Surplus/deficit budget concepts ciation methods and the treatment of inventory Billions of dollars profits. It should be noted however, that infla­ tion introduces an additional, partially offsetting influence. During periods of rising prices, con­ ventional accounting practices fail to reflect the gains that accrue to debtors as a result of the decline in the real value of outstanding, fixeddollar debt obligations. To the extent that the corporate sector is in a net debtor position, this fact may be significant. The inventory effect has been important in recent years because many firms use the “firstin, first-out” (FIFO) accounting method for measuring the cost of goods sold. Under the FIFO approach, goods sold are valued at the prices paid for the inventory acquired earliest. The full-employment budget is based on the series published by the Federal Reserve Bank of St. Louis. Beginning in 1973, During periods of rapid inflation, therefore, adjustments were made to the St. Louis series to include the goods sold are assigned a value well below their impact of inflation on inventory profits. The projections of the actual and full-employment budgets for fiscal year 1976 are replacement costs, leading to an overstatement based on the First Concurrent Resolution on the Budget pre­ of profits relative to the funds that are available sented by Congress in May 1975. to pay taxes on these profits. Table 3 indicates the increased importance of inventory profits in fiscal 1972 and fiscal 1974 was attributable to the 1973-74 period. Because of this distortion, this influence. many firms have recently elected to switch to The significance of inflation for effective tax a “last-in, first-out” (LIFO) method of inven­ receipts is also suggested by the so-called tory valuation. Under this procedure, goods “full-employment” budget, shown in Chart 2. sold are valued at the price paid for the most This analytical measure attempts to focus on the recent additions to inventory. stance of discretionary Federal fiscal policy by Inflation has thus increased effective tax rates abstracting from the automatic effects on budget considerably for both individuals and corpora­ totals of fluctuations in general economic activ­ tions, particularly during 1973 and 1974. Much ity. In other words, the full-employment budget of the $20 billion shift toward a smaller defi­ seeks to show what the position of the budget cit—from $23 billion to $3 billion—that devel­ would have been—given the same discretionary oped in the unified Federal budget between fiscal policies—if the economy had followed a steady growth path close to full employment. As indicated in the chart, the full-employment TABLE 3 budget strongly suggests a shift toward a more restrictive fiscal policy between 1972 and 1974. Inventory profits and taxes Full-employment budget totals, however, have to be interpreted with particular care during Inventory Estimated tax due Calendar profits/ on inventory periods of inflation. A sizable part of the marked year total corporate profits profits1 (in billions of dollars) 1974 shift to surplus in the full-employment budget, for example, clearly did not result from 1970 6.5 1.9 discretionary fiscal actions designed to achieve 1971 5.8 1.9 1972 7.1 2.6 greater restraint. The observed move toward 1973 14.3 6.2 1974 25.0 12.3 surplus simply reflected an uptrend in effective tax rates caused by the inflation of nominal Calculated as the ratio of inventory valuation adjustment to total corporate profits before taxes. incomes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin □ July 1975 Increases in revenues resulting from inflation support the administration’s proposed reduc­ have traditionally been viewed as desirable, tions in spending. automatic fiscal stabilizers. Unfortunately, re­ In his budget message for the fiscal year 1976 cent economic conditions do not fit neatly into the President requested temporary tax reductions this traditional framework of fiscal analysis. of $16 billion, with three-fourths of the amount In 1974 rapid inflation occurred during a period going to individuals and one-fourth to busi­ of economic stagnation, and the source of the nesses—roughly the shares of total Federal in­ inflation was not excess demand. In these cir­ come tax receipts already accounted for by each cumstances the tendency for the automatic sta­ of these sectors. The recommended tax reduc­ bilizers to increase effective tax rates and to tions consisted of a rebate of up to 12 per cent dampen spending was counterproductive in that on 1974 personal tax liabilities and a temporary it reinforced the weakening of the economy. increase in the investment tax credit to 12 per cent. These provisions were modified and supple­ mented by the Congress in the Tax Reduction RECENT Act of 1975, which was passed in April of this BUDGET DEVELOPM ENTS year. This Act provided for approximately $20 Since 1974 the full-employment budget has billion in net tax relief with about $17 billion shifted substantially toward deficit, as Chart 2 going to individuals. shows. For all of fiscal 1975 the actual budget A part of this legislation took the form of deficit moved up sharply to about $45 billion, an $8.1 billion tax rebate on 1974 personal and for the current fiscal year it is now forecast taxes. Other provisions applied to taxes for the to rise further, possibly to $70 billion. calendar year 1975. To ameliorate the effects The latter figure would represent the largest of inflation on taxpayers in the low- and midabsolute dollar deficit in U.S. history. As a share dle-income tax brackets, the Act increased both of GNP, it has been exceeded only by the the standard deduction and the low-income al­ deficits incurred during the full mobilization lowance. A $30 tax credit for each exemption period of World War II. To a considerable was also introduced, and a refundable tax credit extent the record proportions of this prospective of 10 per cent, with a maximum of $400, was deficit simply reflect the impact of deep reces­ provided to alleviate the burden of growing sion on the automatic budget stabilizers. As social insurance taxes on low-income families. employment and incomes have fallen, outlays Finally, to stimulate the housing industry, a 5 for unemployment compensation and other en­ per cent tax credit, with a maxium of $2,000, titlement programs have risen, while tax receipts was provided on the purchase of a new home. have weakened. To stimulate business investment, the invest­ In addition, however, the marked recent shift ment tax credit was increased to 10 per cent, toward fiscal stimulus reflects new fiscal policy and smaller businesses were assisted by a re­ initiatives. In the Federal budget presented in duction in tax rates on corporate profits of less February, the administration requested (1) tem­ than $50,000. Some of this tax relief to business porary tax reductions to help stimulate economic was offset by the repeal of most depletion al­ recovery, (2) cutbacks in certain types of Fed­ lowances on petroleum and natural gas and by eral spending to help curb inflation over the increased limitations on the use of foreign tax longer run, and (3) a system of excise taxes credits. and import fees on petroleum and natural gas Current discussion regarding future tax policy to help promote self-sufficiency in energy. revolves chiefly around the question of whether Among these proposals, those designed to stim­ cuts in tax liabilities provided in the Tax Re­ ulate the economy received prompt congres­ duction Act should be extended into 1976. Other sional attention, but legislative action on the fiscal policy debate centers on the level of ag­ energy program has been deferred. Moreover, gregate spending thought to be appropriate for the Congress has shown little inclination to promoting an extended noninflationary recov­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy 399 ery. The manner in which these issues are cern that the administration was becoming ultimately settled will be influenced strongly by overly selective in its impoundment choices, the extent to which the new machinery estab­ provoked a congressional response in the form lished by the Congressional Budget and Im­ of anti-impoundment legislation. It soon became poundment Control Act is successfully imple­ evident, however, that if such legislation were mented. to be effective, it would have to be accompanied by new procedures that would reorganize the congressional budget process itself. An impor­ tant related development that promoted this rec­ PREVIOUS EXPENDITUREognition was the rapid growth in uncontrollable CONTROL ACTIONS budget outlays discussed earlier. The need for improved congressional control Prior to enactment of the new budget law, over the Federal budget has long been recog­ the ability of the Congress to view the budget nized. Impetus for reform of the budget-making as a whole was severely limited. Since no single process, however, came from the executive, committee was charged with responsibility for rather than the legislative, branch when, during reviewing the entire budget, spending totals in the early years of the 1970’s, the President made any given year were largely the result of un­ a growing practice of impounding funds appro­ coordinated actions by a number of separate priated by the Congress. committees and subcommittees. This fragmen­ Presidential impoundment of appropriated tation of budget decisions made it virtually funds was not a creation of the 1970’s. Legisla­ impossible for the Congress to establish a con­ tive authority for this practice was provided at sistent set of spending priorities. Hence it was least in a limited way by the Anti-Deficiency most difficult to achieve an over-all budget pos­ Act of 1950. That Act permitted the President ture consistent with economic policy needs. to establish budgetary reserves in order to pro­ vide for contingencies and to allow savings in congressionally appropriated funds. Impound­ HIGHLIGHTS ments of this type were for the purpose of OF THE NEW LEGISLATION enhancing managerial efficiency, since it was recognized that funds appropriated under some The Congressional Budget and Impoundment programs might exceed the actual level of ex­ Control Act significantly improves the budgetpenditures needed to complete them. However, making process. It establishes standing budget the Act does not permit impoundment for the committees in each House of Congress em­ purpose of program curtailment or cancellation. powered to study and to recommend changes During the 1960’s most executive impound­ in the budget submitted by the President. In ments involved withholding of funds from high­ effect, these committees are charged with the way trust funds or for defense-related projects. task of formulating a congressional budget ap­ During the early years of the current decade, propriate to the requirements of economic sta­ the character of presidential impoundments un­ bilization. To help implement this new respon­ derwent a quantitative and qualitative change. sibility, the Act creates the Congressional In this period impoundments were justified by Budget Office, paralleling the Office of Man­ the administration not only for purposes of agement and Budget in the Executive Office of managerial efficiency but also as a means of the President. implementing an anti-inflation policy. It was In order both to lengthen the time period over argued that impoundment for this purpose was which the President’s January budget proposal sanctioned by the Employment Act of 1946 as can be considered by the Congress and to assure well as by the Economic Stabilization Act of that actions on appropriations are completed 1971. before the start of the fiscal year, the Act also The expanded use of impoundments during changes the start of the fiscal year from July the 1970’s, and a growing congressional con­ 1 to October 1. The Act is scheduled for full Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Federal Reserve Bulletin □ July 1975 Congressional Budget Timetable the Council of Economic Advisers. The “no­ program change” assumption of the current On or Action to be completed services budget provides a convenient base for before use by the Congress in evaluating the Pres­ Nov. 10 Presidential submission of “current services budget” that includes expectations for next ident’s February budget proposal, since the fiscal year—given current economic fore­ casts and an assumption of no further leg­ February budget is both a forecast of ongoing islative action on spending programs. programs and a statement incorporating pro­ 15th day President submits his budget proposal posed new spending and tax initiatives. after for the next fiscal year. Congress The second stage in the new budget process convenes involves the formulation of an initial congres­ Mar. 15 Congressional committees and joint com­ mittees report to the budget committees sional budget—or as it is termed in the Act, on the President’s budget and the the first concurrent resolution on the budget. economic outlook. This resolution is a preliminary working budget Apr. 1 Congressional Budget Office submits report to budget committees recommending that is intended to serve as a set of guidelines requisite budget totals. for the appropriations committees. The initial Apr. 15 Budget committees report to their respec­ budget resolution, as adopted, sets target figures tive Houses the first concurrent resolu­ tion on the budget establishing key budget for total outlays, tax revenues, appropriations, totals. changes in outstanding debt, and the budget May 15 Committees report bills and resolutions au­ surplus or deficit. The formulation of the first thorizing new budget authority, and Congress passes the first concurrent concurrent resolution is a key stage in the new budget resolution. budget-making process. At this point the Con­ 7th day Congress completes action on all bills and gress will, for the first time, explicitly consider after resolutions from legislative and appropri­ Labor Day ations committees providing new budget and the Federal budget as a whole and relate its spending authority. budgetary decisions to the goals of full employ­ Sept. 15 Congress completes action on a second con­ current resolution of the budget. ment and price stability. This focus on the over-all thrust of fiscal policy is a radical change Sept. 25 Congress completes action on a reconcil­ iation bill or resolution implementing the from past budgetary practice. second concurrent resolution on the budget. After passage of this initial budget resolution, Oct. 1 Fiscal year begins. the budget process enters its third stage. In this stage, the Congress acts on appropriations implementation when the Congress considers its measures through its usual procedures: moving budget for fiscal 1977. from subcommittees to the full committee, to As shown in the accompanying timetable, the action by the House and Senate, and to a final Act establishes a tight schedule for congres­ conference resolution. Final passage of these sional budget actions within a new fiscal year. appropriation measures is held up, however, A brief review of the major steps involved in until all appropriations bills have been reported meeting this demanding timetable will help to and a summary has been prepared. Once this explain its essentials. Basically, the process falls is done, final approval of the appropriations bills into four stages. must be provided in quick succession, since all In the first stage, the Congress considers the appropriations actions must be cleared by the President’s “current services budget,” which Congress no later than the seventh day after is submitted in November, 3 months before the Labor Day. regular administration budget. The current The fourth and final stage of the new budget services budget is a projection of receipts and process begins in mid-September. Having com­ outlays for the coming fiscal year, assuming pleted action on all appropriations measures, the continuation of Federal benefits, services, pur­ Congress must then review the budget as a chases, and taxes as provided under existing whole. At this point, and in view of possible law. This forecast is based on economic as­ changes in economic conditions, the targets of sumptions provided by the latest projections of the initial budget resolution prepared in May are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy 401 reviewed and are either revised or reaffirmed. the President’s authority in this area. The new If the separate appropriations actions exceed the law makes no distinction, however, between targets of the initial budget resolution (or fail routine and nonroutine impoundments. Since to reach them), the Congress may then decide the executive branch is now required to report to alter targets for appropriations, revenues, or all impoundments, the Congress may find that the debt ceiling. The budget process for the the task of monitoring funds that have been fiscal year is concluded with enactment of a withheld and of ascertaining the validity of each reconciliation bill. This bill adjusts separate separate action is more difficult under the new committee actions on outlays and receipts to the law. Moreover, while the Act distinguishes be­ over-all budget targets affirmed by the Congress. tween a deferral and a rescission of spending, Once the final concurrent budget resolution is the distinction between the two actions may not enacted, all new budget authority must be within be so clear in practice as its definition would the limits established by that resolution. imply. Budget authority for most programs has Thus, the final stage of the new budget a fixed expiration date. If spending for such a process is especially important. At this stage the program is deferred, it is possible that the funds Congress is expected to exercise the greatest cannot be fully or efficiently obligated in the amount of self-discipline and, if necessary, to time remaining. Furthermore, during a period challenge the traditional and established pre­ of price inflation, deferral of a spending program rogatives of regular committees. may effectively curtail the scope of the program when funds are ultimately released. Since a rescission requires an approval by Impoundments both Houses of Congress, whereas a deferral A special section of the Act establishes new is valid in the absence of a veto from either procedures for monitoring presidential with­ House, it would seem that, as a matter of holdings of appropriated funds. Impoundments strategy, the executive branch would make rel­ are to be classified by the executive as either atively greater use of the deferral provision if a deferral of spending to a later period or a it is intent on controlling spending by means recommended cancellation of budget authority, of the impoundment mechanism. defined as a rescission. To override a presiden­ tial deferral, a simple majority vote in either the House or the Senate is required. In the case Prospects of a rescission, however, the new law requires for the New Procedures passage of an enabling bill within 45 days of the presidential request. Without such a bill, the At this juncture it is difficult to evaluate the President is required to disburse the funds pre­ likely impact of the new congressional budget viously appropriated. procedures, since the enabling statute will not Regardless of whether a given action is a be fully implemented until the Congress con­ deferral or a rescission, the President is required siders its budget for the fiscal year 1977. As to report the action to the Congress. Ultimately, noted earlier, however, the Congress is partially suit may be brought in the courts by the Comp­ implementing the new approach in formulating troller General if the President fails to comply its budget for fiscal 1976. The Congressional with an override of an impoundment decision. Budget Office has been established and is al­ While the provisions of the new law clearly ready engaged in reviewing many aspects of represent a significant effort to regulate the im­ Federal fiscal policy. Moreover, the budget poundment process, some potential problem committees in both Houses of Congress have areas remain. As mentioned earlier, a large formulated their first concurrent resolution on number of impoundments are routinely initiated the budget for the current fiscal year. As passed under the Anti-Deficiency Act of 1950. The by Congress, this resolution provides for a uni­ Congress probably does not intend to restrict fied budget deficit of nearly $69 billion, ap­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 Federal Reserve Bulletin □ July 1975 proximately $9 billion in excess of the Pres­ Budget Act to date represents an impressive ident’s recommended deficit but significantly beginning. A more significant test of the new less than many forecasters had anticipated. machinery will, of course, come in the fall when To some extent, the deviation from the Pres­ the Congress is forced to reconcile its various ident’s estimates reflects alternative assumptions spending and tax decisions with the targets that regarding the likely strength of the economic it has affirmed in the concurrent resolution. If recovery. But the congressional program also the Congress continues to implement success­ differs in important respects as to recom­ fully the provisions of the Act, this new ap­ mendations for spending, including the ceilings proach promises to produce a more flexible that the administration has proposed on some fiscal policy—one that is capable of responding programs. more effectively to the often difficult require­ Congressional implementation of the new ments of economic stabilization. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Trends in Federal Budget Policy 403 APPENDIX TABLES APPENDIX TABLE 1 Unified budget totals Fiscal year data, in billions of dollars Budget item 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975* 1976" Receipts .............. 116.8 130.9 149.6 153.7 187.8 193.7 188.4 208.6 232.2 264.9 281.0 299.0 Outlays ................ 118.4 134.7 158.3 178.8 184.5 196.6 211.4 231.9 246.5 268.4 323.6 358.9 Surplus, or deficit ( —) -1.6 -3.8 -8.7 -25.2 3.2 -2.8 -23.0 -23.2 -14.3 -3.5 -42.6 -59.9 eEstimates from Mid-Season Review of the 1976 Budget, released May 30, 1975. Source.—Office of Management and Budget. APPENDIX TABLE 2 Major revenue actions since 19691 Date Date Measure recommended enacted Nature of change Tax Reform Act Jan. 1969 Dec. 1969 Increased the personal exemption from $600 to $625 in 1970; of 1969 to $650 in 1971, to $700 in 1972; and to $750 in 1973 and thereafter. The standard deduction was increased from 10 to 15 per cent over a 3-year period, beginning in 1971. Introduced a maximum marginal rate of 50 per cent on earned income; the maximum rate on unearned income remained at 70 per cent. Extended the surtax from Jan. 1, 1970, to June 30, 1970, at a 5 per cent rate. Postponed scheduled reductions in the excise tax rates on automobiles and tele­ phone services until Jan. 1, 1971. Generally repealed the investment tax credit for property constructed, reconstructed, or acquired after Apr. 18, 1969. Excise, Estate and May 1970 Dec. 1970 Extended the excise tax rates on automobiles and telephone Gift Tax Adjustment services, previously scheduled for repeal, at their respective Act of 1970 7 and 10 per cent levels until Jan. 1972. Sped up collections of estate and gift taxes. Treasury’s Asset Jan. 1971 June 19712 Gave firms the option of raising or lowering the “guideline Depreciation lives” of depreciable assets by up to 20 per cent. The reserve Range Guidelines ratio test was abandoned. Revenue Act of Aug. 1971 Dec. 1971 Accelerated by 1 year scheduled increases in personal ex­ 1971 emptions and the standard deduction. Repealed 7 per cent automobile excise tax retroactive to Aug. 15, 1971, and the excise tax on small trucks and transit buses retroactive to Sept. 22, 1971. Reinstated the 7 per cent investment tax credit. Defined and granted the Domestic International Sales Cor­ porations the option of indefinite deferral of the Federal tax due on “export related operations.” Tax Reduction Feb. 1975 Mar. 1975 Provided for a 10 per cent rebate on 1974 taxes up to a Act of 1975 maximum of $200 for individuals. Provided tax cuts retroac­ tively to Jan. 1975 for both individuals and corporations. Individual cuts were in the form of increased standard de­ ductions, a $30 exemption credit, a 5 per cent housing credit, an earned income credit for certain low-income families, and an increase to 10 per cent in the investment tax credit for corporations and public utilities. In addition to the increased investment credit for corporations, a higher surtax exemption and normal tax rate decrease provided some relief that was partially offset by the phaseout of percentage depletion on 011 and natural gas and increased limitations on the use of foreign tax credits in connection with income derived from foreign oil and gas operations. 1 Excludes changes in social security tax rates shown in Appendix Table 3. 2This administrative action was, in large part, incorporated in legislation when the Revenue Act of 1971 was enacted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin □ July 1975 APPENDIX TABLE 3 Major changes in benefit schedules of, and tax rates for, social security trust funds January 1970 to January 1976 Billions of Effective Increased benefits Increased tax rates dollars1 Apr. 1970 15 per cent OASDI benefit increase and other liberalization .................................................................... 24.4 July 1970 Voluntary supplementary medicare insurance premiums increased to $5.30 per month .......... .3 Jan. 1971 Combined tax rate increased to 10.40 per cent 3.3 June 1971 10 per cent OASDI benefit increase *3.6 July 1971 Supplementary medicare premiums increased to $5.60 per month .......................................................... .1 Jan. 1972 Amount of earnings subject to tax increased to $9,000 ............................................................................. 3.0 July 1972 Supplementary medicare insurance premiums increased to $5.80 monthly ................................... .1 Oct. 1972 20 per cent OASDI benefit increase ................... 8.5 Jan. 1973 Substantial liberalization of social security ben­ efits, especially for widows and widowers 2.3 Jan. 1973 Maximum earnings subject to tax increased to $10,800 and combined rate increased to 11.70 per cent ............................................................................ 11.1 July 1973 Medicare benefits increased, including liberali­ zation of benefits .......................................................... 2.0 Aug. 1973 Supplementary medicare insurance premiums increased to $6.30 monthly ................................ .1 Jan. 1974 Maximum earnings subject to tax increased to $13,200 ............................................................................ 4.0 Apr. 1974 7 per cent OASDI benefit increase 3.7 June 1974 4 per cent OASDI benefit increase 2.1 July 1974 Supplementary medicare insurance premiums increased to $6.70 monthly ................................... .3 Jan. 19754 Maximum earnings subject to tax increased to $14,100 ............................................................................ 1.5 July 1975 8 per cent scheduled OASDI benefit increase 5.0 Oct. 1975 Supplementary medicare insurance premiums scheduled to increase to $7.00 monthly _____ .2 Jan. 1976 Maximum earnings subject to tax scheduled to increase to $ 15,000 .......................................... 1.5 1 First full year of operation. 3This amount shows the increase in OASDI benefits begin­ 2This amount shows the increase in OASDI benefits pay­ ning June 1 at an annual rate. In addition, in late June a ments beginning Apr. 1 at an annual rate. In addition, in late lump-sum retroactive payment was disbursed in the amount Apr. a lump-sum retroactive payment was disbursed in the of $1.1 billion. amount of $0.7 billion. 4Automatic cost-of-living benefit and tax rate increases were effective Jan. 1, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

405 Quarterly Survey of Bank Policies with Respect to Credit Use In order to determine how banks have adapted in the Bulletin for March 1975, and results their lending policies in light of a statement of the second are included here. In light of issued by the Federal Advisory Council in mid- experience with the initial survey and because September 1974, the Board of Governors of the of changes in economic and financial conditions Federal Reserve System has conducted two sur­ since late 1974, some modifications were made veys of bank lending policies—one covering in the questionnaire for March. December 1974 and one covering March 1975. In the fall of 1974, when the Federal Advi­ The results of the first survey were published sory Council published its statement, monetary TABLE 1 Bank responses to credit allocation questions, March 1975 compared with same month in preceding years Number of banks; Figures in parentheses indicate percentage distribution of total banks reporting Total number Significantly Essentially Significantly None None Item of banks larger unchanged smaller received approved Urgency of credit allocation as compared with mid-Sept. 1974 ......................... 117 (100.0) 3 (2.6) 47 (40.2) 67 (57.3) Purpose and nature of loans: To meet basic credit needs for normal operations— Applications received ................. 117 (100.0) 3 (2.6) 63 (53.8) 51 (43.6) Proportion approved ..................... 117 (100.0) 5 (4.3) 107 (91.4) 5 ( 4.3) To finance capital investment— Applications received ................... 117 (100.0) 2 (1.7) 44 (37.6) 71 (60.7) Proportion approved....................... 117 (100.0) 2 (1.7) 98 (83.8) 17 (14.5) To businesses suffering temporary illiquidity— Applications received ................... 117 (100.0) 30 (25.6) 65 (55.6) 17 (14.5) 5 (4.3) Proportion approved....................... 117 (100.0) 10 ( 8.5) 98 (83.8) 4 ( 3.4) 5 (4.3) To finance construction loans for residential purposes— Applications received ................... 117 (100.0) 0 (0.0) 24 (20.5) 93 (79.5) Proportion approved....................... 117 (100.0) 2 (1.7) 69 (59.0) 46 (39.3) For permanent mortgage financing for residential property— Applications received ................... 117 (100.0) 8 (6.8) 38 (32.5) 71 (60.7) Proportion approved....................... 117 (100.0) 9 (7.7) 76 (65.0) 32 (27.3) For basic consumer credit requirements— Applications received ................... 117 (100.0) 4 (3.4) 36 (30.8) 77 (65.8) Proportion approved............... 117 (100.0) 2 (1.7) 82 (70.1) 33 (28.2) For purely financial activities— Applications received ................... 117 (100.0) 3 (2.6) 21 (17.9) 59 (50.4) 34 (29.1) Proportion approved....................... 117 (100.0) 2 (1.7) 15 (12.8) 35 (29.9) 65 (55.6) For speculative purposes— Applications received ................... 117 (100.0) 0 (0.0) 22 (18.8) 71 (60.7) 24 (20.5) Proportion approved....................... 117 (100.0) 0 (0.0) 13 (11.1) 42 (35.9) 62 (53.0) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Federal Reserve Bulletin □ July 1975 policy was restrictive, and credit availability at TABLE 2 banks was still quite restrictive in December of Loans outstanding: Changes in selected that year. Since then, however, the situation has categories (January 15, 1975-April 16, 1975) eased considerably. In the initial survey two- Amounts in millions of dollars thirds of the respondent banks indicated that the Change in— urgency of credit allocation problems in De­ Loan category cember was essentially unchanged from the sit­ Amount Per cent uation in mid-September, but at the time of the March survey three-fifths of the banks reported Commercial and industrial loans that credit allocation had become a significantly adjusted1 ................................................. -2,615.6 -2.60 Real estate loans secured primarily by less urgent problem. residential properties plus residen­ Bank responses to a series of qualitative tial construction loans included in commercial and industrial loans 86.0 .28 questions on the trend in numbers of loan appli­ Loans to nonbank financial institutions -1,324.1 -4.61 cations and the proportion of such requests Finance companies ................................. -186.9 -2.09 Other ............................................................ -1,137.2 -5.76 approved in March, as compared with the nor­ Loans to individuals ................................... -93.8 -.34 mal March loan experience, are summarized in Net change in claims on foreigners ... -952.5 -5.84 Table 1. The results suggest a weakening of loan demand in all the categories covered in the Memo: Loans to foreigners2 ............................. -635.9 -5.56 survey, particularly in loans to businesses for Due to foreigners3 ................................. 316.6 1.14 basic credit needs and for capital investment. Excluding residential construction loans and loans to Whereas 13 per cent of the banks had reported foreign businesses (data partly estimated). a significantly smaller-than-normal number of 2 Loans to foreign businesses plus loans to foreign commer­ cial banks, foreign governments, and foreign official institu­ applications for loans to meet basic credit needs tions. of businesses in December 1974, about 44 per 3Demand and time deposits due to foreign banks, foreign governments, foreign official institutions, and foreign individ­ cent of the banks reported a decline in this uals, partnerships, and corporations (data partly estimated), category in March. Three-fifths of the banks plus gross liabilities to their own foreign branches. indicated that demand for loans to finance pro­ ductive capital investment was significantly Loans for purely financial or for speculative smaller in March, in contrast to 24 per cent in purposes are normally an insignificant portion December 1974. Temporary liquidity problems of the loan portfolio, and between 20 and 30 appeared to be less pressing in March, however, per cent of the banks had no such loan applica­ since only one-quarter of the banks reported a tions in March. As in the previous survey, substantially larger-than-usual demand for such almost 90 per cent of the banks surveyed ap­ loans, as compared with 51 per cent in De­ proved a significantly smaller-than-usual cember. About 90 per cent of the banks ap­ proportion of such loans or none at all. proved at least as many, or significantly more Changes in amounts outstanding of selected than usual, business loan applications for these loan categories from mid-January to mid-March purposes. are given in Table 2.1 Loans outstanding de­ Applications for loans to finance homebuild- clined over the 3-month period in all categories ing and consumer needs were again significantly except real estate loans, which remained vir­ lower than normal for March at a majority of tually unchanged. Loans to foreigners continued the banks. In order to focus more clearly on to contract, while funds obtained from abroad the problems of the housing sector, the second rose somewhat, resulting in an increase in fund survey included separate questions on con­ inflows to the United States. □ struction loans and on permanent mortgage fi­ nancing. In both areas loan demand was weak, 1 The time period covered was intended to be con­ sistent with the intended quarterly timing of this and but banks were apparently somewhat more the previous survey. It should be noted that the changes willing to approve mortgage loans than con­ in outstandings reflect loan repayments and takedowns struction loans—a situation that undoubtedly of loan commitments that may have been made prior to the survey period, as well as new loans for which reflects the banks’ assessment of the risk of applications were received or processed during the pe­ financing firms in the housing industry. riod covered by the questionnaire. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

407 Membership of the Board of Governors of the Federal Reserve System, 1913-75 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin ............Boston ...............Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936, when his succes­ sor took office. Paul M. Warburg ..............New York ... do. Term expired Aug. 9, 1918. Frederic A. Delano ..........Chicago .......... do. Resigned July 21, 1918. W. P. G. Harding ............Atlanta ............ do. Term expired Aug. 9, 1922. Adolph C. Miller ..............San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936, when his successor took office. New York Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago ......... Nov. 10, 1919 Term expired Aug. 9, 1920. New York . June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. Cleveland ., Sept. 29, 1920 Term expired Mar. 4, 1921. Minneapolis .... May 12, 1921 Resigned May 12, 1923. Chicago ......... Mar. 14, 1923 Died Mar. 22, 1923. Cleveland ..... May 1, 1923 Resigned Sept. 15, 1927. St. Louis May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936, when his successor took office. Edward H. Cunningham . Chicago ......... do.. Died Nov. 28, 1930. Minneapolis .. .. Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer ...................New York ........Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee .........Kansas City ___May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black ..............Atlanta ...............May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak ..............Chicago .............June 14, 1933 Reappointed in 1936 and 1948. Re­ signed May 31, 1961. J. J. Thomas .....................Kansas City .................. do. Served until Feb. 10, 1936, when his successor took office. Marriner S. Eccles ..........San Francisco ..Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick .......New York ........Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee ...............Cleveland ..................... do. Served until Apr. 4, 1946, when his successor took office. Ronald Ransom .................Atlanta do. Reappointed in 1942. Died Dec. 2, 1947. Feb. 10, 1936 Resigned July 9, 1936. June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Mar. 30, 1938 Served until Sept. 1, 1950, when his successor took office. Mar. 14, 1942 Served until Aug. 13, 1954, when his successor took office. Apr. 4, 1946 Resigned Nov. 30, 1958. Feb. 14, 1947 Died Dec. 4, 1949. Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton ............Atlanta ........ Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell ..............Minneapolis do. Resigned June 30, 1952. For notes see p. 408. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin □ July 1975 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Wm. McC. Martin, Jr. ...New York .......Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. Term expired Jan. 31, 1970. Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson .................Kansas City do . Reappointed for term beginning Feb. 1, 1964. Resigned Apr. 30, 1973. Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston .......Philadelphia Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson .......Dallas .......... Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr....................Atlanta ........ Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell .........Chicago .............AAuugg. 31, 1961 Reappointed for term beginning Feb. 1, 1962. J. Dewey Daane ...............Richmond ___ Nov. 29, 1963 Served until Mar. 8, 1974, when his successor took office. Sherman J. Maisel ..........San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer .........Philadelphia .. Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill .........Dallas ............. May 1, 1967 Reappointed for term beginning Feb. 1, 1968. Resigned Nov. 15, 1971. Arthur F. Burns ...............New York Jan. 31, 1970 Term began Feb. 1, 1970. Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher ............San Francisco June 5, 1972 June 11, 1973 Henry C. Wallich ............Boston Mar. 8, 1974 Philip E. Coldwell ..........Dallas Oct. 29, 1974 Philip C. Jackson, Jr.........Atlanta July 14, 1975 CHAIRMEN3 VICE CHAIRMEN3 Charles S. Hamlin ...Aug. 10, 1914-Aug. 9,1916. Frederic A. Delano...Aug. 10, 1914-Aug. 9, 1916 W. P. G. Harding ...Aug. 10, 1916-Aug. 9,1922. Paul M. Warburg • Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1, 1923-Sept. 15,1927. Albert Strauss ........ Oct. 26, 1918-Mar. 15, 1920 Roy A. Young ........Oct. 4, 1927-Aug. 31,1930. Edmund Platt .......... July 23, 1920-Sept. 14, 1930 Eugene Meyer ..........Sept. 16, 1930-May 10,1933. J. J. Thomas .......... • Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black __May 19, 1933-Aug. 15,1934. Ronald Ransom . • Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles ..Nov. 15, 1934-Jan. 31,1948. C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe..Apr. 15, 1948-Mar. 31,1951. J. L. Robertson .Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. Apr. 2, 1951-Jan. 31,1970. George W. Mitchell..May 1, 1973- Arthur F. Burns .......Feb. 1, 1970- EX-OFFICIO MEMBERS1 SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams Feb. 2,1914-Mar. 2, 1921 Carter Glass ............. Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston ...Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes __May 1, 1923-Dec. 17, 1924 Andrew W. Mellon ..Mar. 4, 1921-Feb. 12, 1932 Joseph W. McIntosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills . Feb. 12, 1932-Mar. 4, 1933 J. W. Pole .................Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J. F. T. O’Connor ..May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr.Jan. 1, 1934-Feb. 1, 1936 1 Under the provisions of the original Federal Reserve Act the members; that the Secretary of the Treasury and the Comptroller Federal Reserve Board was composed of seven members, in­ of the Currency should continue to serve as members until Feb. cluding five appointive members, the Secretary of the Treasury, 1, 1936; that the appointive members in office on the date of who was ex-officio chairman of the Board, and the Comptroller that Act should continue to serve until Feb. 1, 1936, or until of the Currency. The original term of office was 10 years, and their successors were appointed and had qualified; and that the five original appointive members had terms of 2, 4, 6, 8, thereafter the terms of members should be 14 years and that the and 10 years, respectively. In 1922 the number of appointive designation of Chairman and Vice Chairman of the Board should members was increased to six, and in 1933 the term of office be for a term of 4 years. was increased to 12 years. The Banking Act of 1935, approved 2Date after words “Resigned” and “Retired” denotes final Aug. 23, 1935, changed the name of the Federal Reserve Board day of service. to the Board of Governors of the Federal Reserve System and 3 Chairman and Vice Chairman were designated Governor and provided that the Board should be composed of seven appointive Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

409 Statements to Congress Statement by George W. Mitchell, Vice Chair­ eral Reserve would have had to turn it down. man, Board of Governors of the Federal Re­ The City had not fully exhausted possibilities serve System before the Subcommittee on Com­ for State assistance, and its basic need for credit merce, Consumer and Monetary Affairs of the did not appear to be of a temporary character Committee on Government Operations, U.S. since no near-term means of repayment—while House of Representatives, June 25, 1975. continuing to provide the City’s basic ser­ vices—appeared to be at hand. I am pleased to appear before you today to Direct extensions of emergency credit to in­ present the Board’s views as to the use of stitutions that are not members of the Federal Federal Reserve credit facilities in providing Reserve System can be provided under either emergency assistance to financially troubled paragraph 3 or paragraph 13 of Section 13 of cities. I want to state at the outset that we the Federal Reserve Act. Paragraph 13 provides interpret the System’s present powers to engage that any Federal Reserve Bank, subject to such in such lending operations, except as member regulations as the Board may prescribe, may banks are involved, to be quite narrowly cir­ lend to any individual, partnership, or corpora­ cumscribed by law. tion on promissory notes secured by direct obli­ The recent financing difficulties of New York gations of the U.S. Government or an agency City provide a case in point. These difficulties thereof. Loans under this paragraph are limited cumulated rapidly during this past winter and to 90-day maturities. Unless an entity in need spring and reflected the growing reluctance of of assistance possesses large amounts of direct private investors to purchase the City’s short­ Government obligations, the ability of a Reserve term note issues. Since the City already had a Bank to provide credit assistance under this very large amount of short-term debt outstand­ paragraph is very limited. ing and was incurring a substantial current Paragraph 3 of the Act empowers the Board operating deficit as well, any inability to issue of Governors, in “unusual and exigent circum­ new debt raised immediate problems in finding stances” and by an affirmative vote of at least the cash to pay off maturing obligations and to five members of the Board, to authorize the meet the City’s current bills. In searching for Federal Reserve Banks to make certain types alternative means of resolving the developing of direct loans to individuals, partnerships, or financial crisis, there were at times suggestions corporations. Paper discounted by Federal Re­ that the Federal Reserve might be a possible serve Banks under this paragraph must be of source of credit in its role as an ultimate source the “kinds and maturities made eligible for of liquidity to the economy. However, no ap­ discount for member banks under other provi­ plication for credit was received from the City, sions” of the Federal Reserve Act. This means, either at the Federal Reserve Bank of New York among other things, that the paper may not have or at the offices of the Board of Governors. a maturity of more than 90 days at the time If a formal request had been received by the of discount. The paragraph further provides that Federal Reserve for the emergency credit ac­ the paper shall be “endorsed or otherwise se­ commodation of New York City under the cir­ cured to the satisfaction of the Federal Reserve cumstances that had prevailed, however, I am Bank,” which the Board has construed to mean obliged to state that, in my judgment, the Fed­ that a Reserve Bank should ascertain that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 Federal Reserve Bulletin □ July 1975 security offered is adequate to protect the Re­ original 1913 version of the Federal Reserve serve Bank against the risk of loss. Act. The House of Representatives report on In light of these restrictions in the law and the Act indicated that the provision was de­ the background as to the intent of the law, the signed to open an outlet through which idle Board has concluded that in considering the funds of Federal Reserve Banks could be profi­ extension of emergency credit to particular bor­ tably channeled and to provide a means to rowers the following conditions must be met: enable Federal Reserve Banks to make their 1. Unusual and exigent circumstances exist; discount rate effective in the market at those 2. Potential borrowers have exhausted other times when member bank borrowing was slack. sources of funds; There is nothing in the Act or its legislative 3. Borrower is solvent and has adequate col­ history to indicate that this authority was in­ lateral; tended to be used as a channel for financial 4. Borrower’s need is for short-term accom­ assistance to public bodies. Moreover, such modation and its basic financial position will authority has not been used since 1933 because permit early repayment; and enactment of Section 10(b) permitted the Fed­ 5. Failure to obtain Reserve Bank credit eral Reserve to advance credit to member banks would have a significant detrimental economic on the strength of their own promissory notes, and financial impact on the surrounding area, as well as through the discount of eligible paper. the region, or the Nation. Given this background, the Board does not These criteria highlight the essentially low- believe that Section 14(b) contemplates the pur­ risk and temporary character of System emer­ chase of municipal obligations as a means of gency lending, as well as the general economic aiding financially distressed communities. purpose behind it. Such lending is intended In view of these existing constraints on Sys­ primarily to provide liquidity. Though short­ tem emergency lending, it may be asked term needs of this type can develop among whether it would be desirable to legislate either large governmental units or business en­ broader powers that would permit Federal Re­ terprises, in most cases the need can be accom­ serve accommodation of financially distressed modated without relying directly on the Federal communities. While the Board has not consid­ Reserve simply by turning to commercial ered any specific proposals toward this end, I banks—who will rely on their own or Federal would strongly caution against any proposals Reserve resources—to extend the needed credit. that would provide direct access to central bank When this is not possible, as seemed to be the credit by hard-pressed governmental units. My case with New York City, it is likely that the reasons for reaching this judgment are as fol­ difficulties encountered in the private credit lows : markets reflect more fundamental credit-risk First, the critical issue for particular munici­ problems and that temporary credit accommo­ palities is how governmental functions and dation will not be sufficient to correct the situa­ sources of revenues are dispersed between it and tion. the State government. Prospective sources of In addition to the emergency lending powers funds must be commensurate with the projected contained in Section 13 of the Federal Reserve costs and expenditure programs in order to bal­ Act, Section 14(b) authorizes the individual ance out over the longer run. Access to a source Federal Reserve Banks to purchase and sell of temporary credit will not help to achieve such obligations t)f State and local governmental a balance, and it may tend to defer or to prevent bodies. The Act requires that these govern­ the remedial actions that are necessary, difficult mental obligations mature in no more than 6 as they may be. months from the date of purchase and that they Second, central bank involvement in provid­ be issued in anticipation of the collection of ing temporary credit accommodation to State taxes or in anticipation of the receipt of assured and local governmental bodies will necessarily revenues. require that standards be set determining which The 14(b) authority had its origin in the localities will be eligible or ineligible for credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 411 accommodation. This would involve the System through a separate facility rather than through in making credit judgments on the finances of the Federal Reserve. Federal monies or credits numbers of State and municipal governments, would still be expended in any such venture, thus subjecting the Federal Reserve to intense but it would not involve the use of high-powered political pressure to make exceptions for this central bank funds. Such a separation would city or that because of special circumstances. thus leave the Federal Reserve free to pursue Moreover, the need to exercise administrative its other responsibilities for monetary and bank discipline over borrowers in order to assure regulatory policies, which are difficult enough timely repayment would tend to draw the Sys­ in themselves. tem into political issues of local budgetary pol­ I would urge caution, however, even in pro­ icy. A central bank, in our judgment, should posing the establishment of a special Federal leave this issue to other agencies of the govern­ financing facility to assist with the financing ment. needs of our State and local governmental Third, increased access to central bank credit bodies. Such a facility must have sufficient by municipalities suffering some degree of fi­ oversight powers to permit it to play an effective nancial distress could lead to similar urgent role in correcting the fundamental financial demands for credit by other kinds of borrowers. problems of client communities, if the Federal If central bank credit is extended to our cities, assistance is to be productive. This would be for example, why not for a host of other pur­ bound to create a Federal presence in local poses, such as the immense investment that will issues of taxation and spending, a varied and be required to achieve energy independence? A shifting political and social terrain indeed. proliferation of demands for credit from the In the spirit of our traditional system of sepa­ central bank would drastically change the char­ ration of powers, it may well be better to leave acter of the assets of the Federal Reserve System local problems to local solutions. The special from prime paper of highest quality to an as­ program of financial assistance that was devel­ sortment of soft loans and, in the process, oped for New York City at the State level severely damage the Government’s access to through the formation of a new agency—the financing. It could undermine our ability to Municipal Assistance Corporation—is an illus­ control the volume of bank reserves and hence tration of State-local resourcefulness. The cor­ the supply of money. In the extreme, the result poration is authorized to provide up to $3 billion could be a debasement of the Nation’s money in credit to the City and, as it does so, valuable and ruinous domestic inflation. time will be gained in which the City can take For these reasons, if your committee should the steps needed to restore its credit standing conclude that the financial pressures on key with the private investment community. I hope municipalities require the provision of special that the City’s actions will soon make it possible Federal financing assistance in the period ahead, to carry on needed refinancing and other debt the Board would strongly urge that this be done operations in the normal manner. □ Statement by Henry C. Wallich, Member, formation. I do so purely in my personal capac­ Board of Governors of the Federal Reserve ity. System, before the Committee on Ways and There is widespread concern that the United Means, U.S. House of Representatives, June States is approaching a period of capital short­ 25, 1975. age. More capital for investment will be needed in the future than has been needed in the past. It is a great pleasure to address this distinguished Savings to finance this investment, on the other committee on the subject of taxes and capital hand, have been diminishing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin □ July 1975 Fortunately, the demand for capital is likely depreciation facilities more realistically recog­ to increase by only a small margin. Business nizing inflation, an outright cut in the corporate investment, which in the past had averaged tax rate, and, at the individual taxpayer level, approximately 10.5 per cent of gross national adjustment of capital gains taxes for inflation product, probably will have to average 11.5 per and a reduction in the capital gains rate for cent in order to provide needed jobs, protect longer holding periods. All these techniques the environment, assure the health and safety have advantages. They mostly share the disad­ of the labor force, and meet energy needs. vantage, however, of reducing the Treasury’s Meanwhile the capital requirements of home­ revenue and of shifting the distribution of in­ owners and of various types of urban con­ come in the direction of greater inequality, or struction may diminish thanks to declining pop­ at least of partly reversing a move toward ulation growth, and less investment in inventory greater equality that may have occurred. A loss may be needed as inventory control methods of Treasury revenue, besides, means more improve. Treasury borrowing and to that extent does not The supply side of capital, on the other hand, help resolve the capital shortage. presents more serious difficulties. The continued If we want to avoid a loss of revenue and ability of the individual saver to supply capital a shift in the income distribution, it would still equal to a historic 4 to 5 per cent share of GNP, be possible to improve the capital structure of to be sure, does not call for serious questioning. corporations and facilitate financing. This could The ability of corporate business, however, to be done by removing or reducing the bias in contribute to the flow of savings has been hurt favor of debt against equity that is a familiar by the diminishing share of corporate profits in feature of the corporate tax system. Two the GNP and by the deteriorating quality of methods are available: these profits. Taking demand for and supply of 1. To eliminate the deductibility of interest capital for the private sector as a whole, a deficit payments by nonfinancial corporations and so very probably is ahead. To this private capital to tax net operating income (income after de­ deficit there may well have to be added a deficit preciation but before interest) instead of, as in the accounts of State and local authorities. now, net income (income after depreciation and The Federal Government therefore will play interest). The tax rate then could be lowered a decisive role in balancing the demand for and substantially without losing revenue. the supply of capital. If the Federal budget 2. To make dividends deductible, the same produces a sufficient surplus, this will offset as interest, and therefore to tax only retained private plus State and local deficits. An over-all income, at a rate substantially higher than the capital shortage will have been forestalled. If present rate. the surplus is too small or if, as has happened Of these two approaches, I regard the first— before, the Federal budget is in deficit, we shall taxation of net operating income—as preferable, confront a shortage. because the second is essentially a tax on un­ The corporate sector suffers, in addition to distributed profits, which would require a num­ its weakened earnings, from serious financing ber of complex provisions to keep it from be­ constraints that may impede financing of invest­ coming detrimental to capital accumulation and ment even if adequate savings are available. growth. For the implementation of the tax on Corporate liquidity has been drained. The capi­ net operating income, two methods are available tal structure of corporations has deteriorated, in order to avoid the severe impact on corpora­ with debt rising relative to equity, and short­ tions with above-average debt that would result term debt rising relative to long-term debt. Both from sudden nondeductibility of interest, even conditions could be remedied by a variety of at a moderate rate. These are: measures that would improve corporate cash flows and enable corporations to improve their 1. To phase in the change over a number of capital structure. Among them are such familiar years—a growing fraction of interest paid be­ proposals as an enlarged investment tax credit, coming nondeductible over time and a growing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 413 fraction of dividends being taxed at the reduced there is no need here to pass them in review. As rate. noted already, they share for the most part the 2. Application of the tax change only to debt defect of making the distribution of income and equity issued after enactment. more unequal. Among those that would have the desirable effect of pushing the economy in the Method 1 (phasing in gradually) exerts only direction of greater equality is the type of plan limited pressure toward more equity financing that tries to convert employees into stock­ in the early years and for that reason seems less holders. Here again, a wide variety of models desirable, even though it has administrative ad­ have been presented. In my judgment, such vantages. Method 2 would immediately end the plans are desirable if they meet the following existing bias in favor of debt financing. It poses criteria, in addition to giving the individual em­ administrative difficulties because in effect there ployee a share in the flow of corporate profits: would be two tax rates, one on old debt and 1. An increasing flow of equity funds for the equity and another on new. Regulations would firm; have to be written with a view toward closing 2. A tax arrangement that allows firms to treat the obvious loopholes that such a situation contributions made on behalf of its labor force presents. as part of tax-deductible wages, even though Financial intermediaries, whose principal business consists in receiving and paying inter­ these contributions were made in the form of est, could be covered by either alternative only stocks; by means of complex arrangements and it seems 3. Diversification of holdings for the benefit preferable to give them entirely separate treat­ of the stock-owning employees, to reduce the ment. This would seem appropriate also in view risks of particular stock investments; of the lack of uniformity of the present taxation 4. Protection against excessive concentration of financial intermediaries. of voting power in the hands of any particular The foregoing tax changes would improve the group; and structure of corporate capitalization and thereby 5. Ability of the stock-owning employee to ease corporate financing. They would not, by sell his stock, subject to some minimum holding and of themselves, increase the supply of sav­ period. ing. The number of devices that have been I believe that plans of this kind deserve ex­ suggested to increase saving is large, and most amination as part of the effort to increase the of them have been so thoroughly discussed that supply of capital. □ Statement by Jeffrey M. Bucher, Member, need for consumer leasing disclosures has been Board of Governors of the Federal Reserve of some concern to us over the last 2 years. System, before the Subcommittee on Consumer In its Annual Report to Congress on Truth in Affairs of the Committee on Banking, Currency Lending for 1973, the Board pointed out several and Housing, U.S. House of Representatives, disclosure problems in the area of consumer July 8, 1975. leasing and suggested that the Congress might wish to examine this rapidly expanding field. Mr. Chairman and members of the committee, The additional step of recommending legislative it is indeed a pleasure to have the opportunity provisions was taken by the Board in its Truth of appearing before this Subcommittee on Con­ in Lending Report for 1974, and I was gratified sumer Affairs to present the Board’s views on to note that many of the provisions of the the Consumer Leasing Act of 1975, H.R. 4657. Board’s proposal have been incorporated into The Board is particularly pleased to see legisla­ H.R. 4657. tive action beginning in this area because the I would like to state at the outset that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin □ July 1975 Board believes that consumer leasing is an ap­ ble, for consumers to shop in the expanding propriate method of utilizing and, in some leasing market. Our hope is that the passage cases, of purchasing consumer durables. Con­ of this type of legislation will help consumers sumer leasing has experienced rapid growth not only to compare leasing alternatives but also within the last decade. This growing popularity to compare lease transactions with conventional suggests that the public is increasingly coming credit sales. to view leasing as a viable alternative to credit The need for comparability in disclosure be­ purchases for some products. tween lease and credit transactions is particu­ Available statistics on the growth of con­ larly important because many consumer leasing sumer leasing indicate that the so-called “big- arrangements now prevalent in the market are ticket durables”—such as automobiles, color essentially the equivalent of credit sales. The television sets, and homefurnishings—are the terminology of the trade, for example, refers most common goods leased by consumers. Au­ to certain lease agreements as “financing tomobiles presently constitute the most popular leases.” The fact that many of these leases are leased goods, and this aspect of consumer leas­ essentially equivalent to credit sales is not coin­ ing will no doubt absorb much of the subcom­ cidental. For example, both the Comptroller of mittee’s attention during its deliberations on this the Currency as to national banks and the Board legislation. in its rules governing bank holding company Automobile leasing has experienced rapid activities require that leases entered into by growth over the past decade. According to sta­ these institutions be the functional equivalent of tistics from the National Automobile Dealers a credit transaction and have thus limited the Association, in 1965 more than 1.5 million asset risk that banks and bank-related lessors automobiles, some 14 per cent of the total may take in engaging in leasing operations. number produced, were leased, and one-fifth of These rules, designed to protect the safety and this total was leased to individuals. By 1970 soundness of banks in which the public deposits the percentage of automobile production that its funds, have the effect of placing the risk of was leased had grown to 24 per cent (2.6 any unforeseen deterioration or depreciation of million), more than a quarter of which repre­ the product leased on the lessee. Thus, legisla­ sented leases to individuals. As of 1974, 2.8 tion to protect the consumer by requiring proper million, about 26 per cent of the total number disclosure of the consumer lessee’s risks be­ of cars made, were leased, and 36 per cent of comes all the more important. Otherwise, the this total was leased to individuals. Thus, over lessee may unknowingly undertake nearly all the almost a decade, the percentage of total auto­ burdens of ownership without the benefit of title mobile production leased to individuals has tri­ or adequate cost disclosures. pled in size—from less than 3 per cent in 1965 It is presently not possible as a practical to 9.2 per cent in 1974. Projections from auto matter to require adequate cost disclosures on makers in Detroit, moreover, estimate that 80 leases under the Truth in Lending Act. The per cent of the growth in leasing through 1980 Truth in Lending Act brings certain leases will be seen in leases to individuals. within its disclosure requirements through the The Board’s concern with consumer leasing definition of a credit sale contained in Section is that presently, except for provisions made in 103(g). However, these requirements apply only a few State statutes, there is no requirement that with respect to those leases that contain provi­ a standardized aggregate cost disclosure be sions permitting the lessee to become the owner given the consumer when he leases goods under of the goods leased “for no other or a nominal a long-term contract. The major purpose of the consideration.” The Board might conceivably Truth in Lending Act has been to facilitate expand this provision by adopting a broad defi­ meaningful consumer shopping of the credit nition of what constitutes nominal consid­ market by providing standardized disclosures of eration. However, this would still not accom­ credit costs. Without comparable disclosures on plish the purpose of assuring that adequate cost consumer leasing, it is difficult, if not impossi­ disclosures are given in all consumer leases, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 415 such as those in which there is no option to the product. For example, in this case, the purchase. In addition, we believe that the num­ depreciated value of the car might be $2,500, ber of leases with nominal purchase options is which under the lease contract would leave the quite small. lessee liable for an additional $500 “balloon” The focal point of the Board’s concern is thus payment. Thus, if the contract sets an unrealisthose long-term leases of personal property to tically high depreciated value on the leased be used for personal, family, or household pur­ goods, the contingent liability of the lessee will poses, which typically have a maturity ap­ increase accordingly, and the lessor can offer proaching that of a credit-sale agreement, and deceptively low monthly rental payments to an potentially bind the lessee to the payment of unwary public. an aggregate sum substantially equivalent to the Under Section 183 the lessee’s contingent value of the goods leased. This does not include liability would be limited to twice the average the short-term convenience leasing such as monthly rental payment, except for additional “rent-a-car” arrangements. charges imposed for lessee default or for dam­ We feel that standardized disclosures, com­ age to the leased goods in excess of normal wear parable to those set forth under the Truth in and tear. The section is thus designed to protect Lending Act, should be required for lease ad­ the consumer lessee in two ways. First, it is vertisements as well as for consumer lease designed to notify the consumer of his maxi­ transactions. However, we do not believe that mum contract liability under the lease. Sec­ rate disclosures, analogous to the annual per­ ondly, by incorporating a monthly payment centage rate under the Truth in Lending Act, factor into the computation of the maximum are practical. The development of lease rate end-term liability figure, the section seeks to disclosures is impractical, we feel, because of assure that the lessor will price the rental instal­ the difficulty of determining what common costs ments of the goods leased sufficiently high to should be isolated in the computation of such cover expected depreciation and thus avoid rates. leaving the consumer lessee with an unduly I would now like to comment on two sections large balloon payment at the end of the lease of H.R. 4657 that we regard as highly impor­ term. tant. The first is Section 183, which sets a Let me reiterate at this point what the Board limitation on a consumer lessee’s liability. This stated in its 1974 Annual Report: We are not provision of the bill addresses the liability that committed to a 2-month formula. Another for­ the lease may impose on a consumer lessee at mula, such as 3 months or 15 per cent of rental the end of the lease term. It is not uncommon payments over the life of the lease, may work for consumer leases to provide that upon the as well or better. The Board would hope that expiration of the lease the product will have a whatever formula may be chosen will reflect stipulated depreciated value and will either be industry experience in accurately setting depre­ purchased by the lessee or sold to an inde­ ciated values. However, we believe that some pendent party. Under the terms of such an limitation tied to instalment payments is highly agreement, if the product is sold and brings less desirable. Such a limitation reflects the fact that than the depreciated value stipulated in the con­ typically the lessor is better able to predict tract, the lessee is liable for the difference; if residual values than is the lessee. In addition, it brings more, the lessee is entitled to the this limiting factor reduces the possibility of a surplus. large contingent liability on the part of the lessee For example, a typical 2-year auto lease on and gives the lessee a “bottom line” price tag a $5,400 car might call for 24 $100 instalment that may facilitate comparative shopping. payments and set an end-term depreciated value The second provision on which I would like of $3,000 on the car. Under such an agreement, to comment is Section 105 of H.R. 4657. This the lessee may have no understanding of how section places an effective date for this legisla­ much the lease may cost unless he can accu­ tion as the first day of the second full calendar rately predict the second-hand market value of month after the date of enactment. As we have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin □ July 1975 mentioned before, we believe the time that the procedures. Therefore, the Board would re­ Congress grants to an agency to implement a spectfully urge that a minimum of 12 months given statute has a direct bearing on the quality be provided before this Act is to become effec­ and effectiveness of the agency’s regulations. tive. We believe the 2-month period accorded under In closing, I would like to commend this H.R. 4657 is far too short to develop well-con­ committee for the action taken in this area. This sidered implementing regulations that are fair new and expanding alternative to credit pur­ to the lessee and lessor alike. Time for consul­ chases, we feel, merits careful attention, and tation with both business and consumer groups we are confident that the Congress will provide is needed. Time is also needed to comply with a statutory basis to assure that the consuming the Administrative Procedure Act, which re­ public will have the necessary information to quires publication of proposed rules for com­ make intelligent shopping decisions in lease ment. Responding comments must be carefully transactions. The Board, of course, stands ready analyzed. Finally, if the regulations are to be to assist in the implementation of such legisla­ properly complied with, industry must have tion, and I would be pleased to respond to any some time to study them and to change business of your questions. □ Statement by Philip E. Coldwell, Member, stockholders; however, they are required by the Board of Governors of the Federal Reserve bank supervisory agencies to file similarly de­ System, before the Committee on Banking, tailed income and balance sheet data subject to Housing and Urban Affairs, U.S. Senate, July disclosure. 16, 1975. In recent years, the bank supervisory agencies have acted on several occasions to expand the I am pleased to appear before you today to amount of individual bank financial data col­ present the views of the Board of Governors lected and released to the public. We believe on the important question of disclosure of data that still more disclosure is needed at the present for investor analysis of banks and bank holding time, and our reporting requirements will be companies. We approach this subject with full revised accordingly. Banking practices have appreciation of the need, as expressed in our undergone rapid modification in recent years as securities laws, for providing the investor with banks have accommodated to changes in the sufficient public information to reach informed “state of the art” and to the economic environ­ opinions on the current and prospective financial ment, and further substantial changes are un­ conditions of individual institutions. doubtedly in store over the years to come. The Board recognizes the primary role of the Accordingly, I can assure you that the question Securities and Exchange Commission (SEC) in of disclosure will remain under continuing re­ matters of disclosure for investor purposes. view by the Board of Governors of the Federal Since 1964 when the Board was given respon­ Reserve System and we stand ready to make sibility for certain disclosure provisions of the further adaptations in reporting as conditions Securities Exchange Act of 1934 as they apply warrant. to State member banks, our requirements have While fully recognizing the need for disclo­ followed substantially the counterpart regula­ sure, we also have been aware that, as with all tions imposed by the SEC on other corporations. worthy objectives of public policy, provision for With respect to other banks, very similar dis­ meeting the informational needs of the investor closures have been imposed by the reporting involves certain costs. In extreme cases, those requirements of the other Federal bank supervi­ costs could far outweigh possible benefits to the sory agencies. A great many banks are not investor that the additional information would subject to the disclosure requirements of the provide. For banks and other depositary institu­ 1934 Act because they have less than 500 tions with liabilities withdrawable on demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 417 or on short notice, disclosure requirements need sensitive vital signs so that the investor can to guard against triggering unwarranted rumors make an informed estimate of the prospective that could impel large outflows of funds. Thus, income flows. The present income statement the Board has approached the disclosure prob­ required to be filed by all Federally supervised lem mindful of its statutory responsibilities as banks provides extensive detail directed toward a bank regulator and supervisor to maintain an meeting these needs. Included in such state­ environment in which the banking system can ments are refined breakdowns of income and adequately serve the public interest. expenses, loan loss and recovery experience, In providing for investor informational needs, provision of reserves against future losses on the Board believes that the public interest will loans and securities, and segregations of income be served most effectively if essential disclosure earned in certain specialized activities such as is achieved as fully as possible through regular foreign branch and trading account operations. reporting requirements imposed by Federal bank But even more income-statement detail now supervisory agencies and the SEC. Only with seems desirable in order to enable the investor comprehensive, standardized, periodic reporting to make an adequate assessment of future earn­ can the necessary time series of financial infor­ ings possibilities and to forecast an institution’s mation be provided that will enable the investor ability to adjust to the more fluid market envi­ to discern significant trends in individual bank ronment that has been emerging. In particular, performance and make an adequate assessment we are contemplating additional reporting to of future prospects. Moreover, with such a provide for: factual base, substantial changes or differences 1. A more comprehensive measure of the in the performance of individual banks can be cost to the banks of interest-sensitive funds, examined in the broad context of contemporary 2. A breakdown of loan charge-offs and re­ developments at comparable banks. More im­ coveries, and portantly, a requirement of meaningful regular 3. A measure of the effect on bank income reporting should help to minimize the need for of loans that are past due or have otherwise been ad hoc disclosure at the time of proposed fi­ subject to reduction or deferral of interest or nancings. Such disclosure carries a risk that individual banks issuing securities will be re­ principal because of problems associated with the borrower. quired to release types of information not avail­ able for other banks that might be misleading Detailed information regarding the composi­ or misinterpreted by the market. tion of assets and liabilities of banks and bank The Board also believes that the major focus, holding companies is also an important ingre­ in constructing a disclosure framework for dient for adequate investor analysis. Such data banks and bank holding companies, should be are needed to aid in the interpretation of the on earnings performance as reflected in the income statement, to determine trends and cur­ income statement. Fundamentally, what the in­ rent status of the bank’s operations, and to vestor in any enterprise is purchasing is man­ appraise the bank’s liquidity, capital adequacy, agement ability and market opportunities. Over and general financial condition. The present time these are effectively reflected, in distilled supervisory “Call Report,” which includes over form, by earnings performance. In recent years 100 separate asset and liability items, already the undue attention that often has been focused, provides the bulk of the information needed for by investors as well as management, on size these purposes. or “footings” rather than on operating results Nevertheless, some additional balance sheet sometimes has led to misinterpretation of the reporting may now be advisable to reflect recent true picture of financial strengths or weaknesses changes in banking activity and in the environ­ of banks and bank holding companies. ment in which banks operate. We have been To effectively serve its informational func­ discussing possible major additions to regular tion, the income statement should portray not reporting subject to disclosure by at least the only what the bank or company has done but larger banking organizations. These might in­ also should reveal enough of the institution’s clude: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin □ July 1975 1. A maturity breakdown for major cate­ hearings. I would caution that, in evaluating gories of investments, these suggestions, it is vital to take into account 2. A classification of loans according to a variety of considerations that bear on the whether the rate charged is fixed or floating, extent to which disclosure serves the public 3. A breakdown of the outstanding amount interest. Certainly the investing public must of time deposits in denominations of $100,000 have access to all material information needed or more, and for intelligent investment decision-making. But 4. Information on the amount of outstanding unreasonable or excessively detailed demands loan commitments and the amount of outstand­ for information or requirements for disclosure ing credit under those commitments. of information that might be misleading could More frequent reporting of income and bal­ be counterproductive. Such demands could fail ance sheet information also seems desirable for to serve the interests of the investor, who is adequate investment analysis in a rapidly the intended beneficiary. More importantly, they changing economic environment. Accordingly, might injure a bank’s depositors and borrowers, we are considering a requirement that reporting and thus the general welfare of the community of income, now required annually, be set on that it serves. Finally, they could create an a quarterly basis for large banks and semian­ unjustifiable and costly burden on the reporting nually for smaller banks. In addition, the spring institution. and fall Call Reports, which currently are less It is most important that the type and form detailed than those for June 30 and December of disclosure imposed on banks be carefully 31, may be expanded to include the greater weighed so as to avoid undermining the will­ detail. ingness of banks to assume risk or to avoid As the committee is aware, the bank supervi­ eroding the confidence of depositors—a critical sory agencies, at the request of the SEC, have determinant of banks’ ability to attract the funds been participating in intensive interagency con­ needed to finance lending activities. The evalu­ sultations over the past 3 months for the purpose ation and assumption of risk are basic attributes of seeking a common understanding regarding of commercial banking. Only if a bank is willing questions of appropriate financial disclosure for to assume reasonable risks will it be able to help banks and bank holding companies. I think the its local community to grow and prosper. This group has made important progress toward that can be done prudently if the institution main­ goal. Substantial agreement has been reached tains adequate diversification, so losses are rel­ regarding the areas in which additional disclo­ atively predictable, and if the bank’s charges sure is needed and most of the specific types are commensurate with its costs, including the of information that would best meet investor risk of losses that may be incurred on its port­ needs. All the agencies involved have shown folio of loans and investments. a keen awareness of the need to obtain increased We must keep in mind that some loan losses disclosures in ways that will minimize the risk are to be expected when a bank is fully serving of misinterpretation or unjustified disturbance to the needs of its customers. To overemphasize confidence. disclosure of such losses could jeopardize the The interagency coordinating group has been depositor confidence so necessary to the health grappling with highly complex issues, and some and progress of a financial institution. Release further discussions will be necessary. We are of information that the public has little or no pressing forward as rapidly as possible, and experience in evaluating may suggest possible there is every reason to expect, on the basis trouble at a bank or bank holding company and of progress to date, that we will soon be in a thus bring on sizable deposit outflows, espe­ position to publish both the new disclosure cially of impersonal money market funds. We, guidelines and the revised bank reporting re­ therefore, have had to seek a fine balance be­ quirements . tween the attainment of the level of disclosure Many suggestions for increased bank and needed for intelligent investor decision-making bank holding company disclosures are being and the avoidance of the kinds of information offered in the course of these congressional that might damage the public interest in main­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 419 taining stability and responsiveness in our of the need for full and meaningful disclosure banking institutions. of the information on the affairs of individual Also of major significance, particularly at this* banks required for sophisticated and intelligent juncture, is the potential impact that ill-con- investment analysis. We intend to call for such ceived disclosure requirements might have on disclosures, insofar as State member banks are the willingness and ability of banks to acquire concerned, and we are confident that the other additional capital through public issuance of agencies—all of which have benefited by the securities. Owing to rapid asset growth in recent deliberations of the coordinating group—will do years, capital positions at a number of banks the same. have approached minimum acceptable levels. However, we are also most mindful of the These banks need additional capital if they are other public policy objectives that must be to participate fully in meeting the loan demands served. The continued stability of our financial that will be generated by vigorous economic system, the need to encourage reasonable risk recovery. But they may not be willing or able taking by our banking community, and the need to raise the capital that is required, unless the to raise the additional capital required to support channels for long-term market financing are kept a vigorous expansion in bank lending in support free of artificial impediments. of economic recovery are among the most im­ In summary, we at the Board are well aware portant of these other considerations. □ Statement by Robert C. Holland, Member, sirable degree of instability within the banking Board of Governors of the Federal Reserve system and of steps that might be taken to System, before the Subcommittee on Financial reduce such proclivities. A number of our col­ Institutions Supervision, Regulation and Insur­ leagues in Government have been engaged in ance of the Committee on Banking, Currency similar efforts as well. Many bank managements and Housing, U.S. House of Representatives, have also been thinking through the implications July 16, 1975. of recent financial events for their own institu­ tions. This degree of attention and concern I am pleased to appear before this subcommit­ regarding the health of our banking system tee, on behalf of the Board of Governors of the attests to the critical role banking institutions Federal Reserve System, to discuss the broad fill in our financial system and economy, and range of important banking regulatory and it underlines the need to insure that no signifi­ supervisory matters concerning which your dis­ cant weaknesses impair their continued well­ tinguished chairman has requested the Board’s being. views. Among those financial events of recent years The financial experiences of the last 2 years that have given cause for concern, the failure have raised many significant issues with regard of the Franklin National Bank looms large. The to the regulation and supervision of the Nation’s circumstances leading to the demise of that banking institutions. The need for a careful institution have already been publicly reported, review of those factors that might adversely and therefore my statements on this matter will affect the stability of the banking industry has focus primarily on the role played by the Federal been recognized by this subcommittee and other Reserve in cooperation with the other bank committees of the Congress, by the Board, and regulatory agencies. by the other banking regulatory agencies. As During the period from mid-May to October I reported to this subcommittee in my testimony of last year, the Federal Reserve Bank of New of December 12, 1974, at the Board we have York provided emergency credit assistance to undertaken a careful analysis of the key problem Franklin National Bank in amounts rising to a areas that might tend to contribute to an unde­ peak total of $1,767 million. The actual Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin □ July 1975 amounts loaned to Franklin varied from day to receiver. The FDIC then proceeds with the day, depending upon its liquidity needs. The winding-tip of the bank’s affairs, seeking to Franklin National Bank was a member bank of achieve an orderly transfer of the insolvent the Federal Reserve System; as such, it merited institution’s assets and liabilities and as little the privilege of accommodation at our discount loss as possible to the deposit insurance fund window under the usual rules so long as it it administers. remained solvent, and we were advised by its In the Franklin case, the Comptroller began primary bank supervisor that such was the case. consultations in May and June with major banks The sheer size of the loans to Franklin, how­ that might have been capable of, and interested ever, was extraordinary. in, acquiring Franklin by merger. In September The primary purpose of these loans to Frank­ he obtained the additional advice of a financial lin was to prevent the immediate or imminent consultant in an effort to determine definitely closing of that institution because of its liquidity whether the bank could continue as a viable, problems. We believed that the closing of a independent institution. $5 billion bank such as Franklin could have In July, foreseeing the possibility that Frank­ precipitated other bank failures with resulting lin might have to be declared insolvent, the large losses for many individuals and business­ Comptroller requested the FDIC to contact other men and for the Federal Deposit Insurance Cor­ banking organizations that were potential pur­ poration. This situation arose during a difficult chasers of Franklin’s assets and to develop a period for financial institutions and financial plan to assist such a purchasing bank in a markets; such a failure at that time could, in transfer of assets and liabilities. The FDIC ac­ our judgment, have had serious adverse conse­ cordingly began negotiations with interested quences for the stability of our Nation’s banking banks to draft an acquisition proposal upon system and for domestic and international fi­ which banks could bid competitively in the nancial markets in general. event Franklin had to be declared insolvent. With these considerations in mind, Federal Briefly, this plan, as it was developed, called Reserve credit, fully secured by Franklin Na­ for the FDIC as receiver of Franklin to transfer tional Bank collateral, was extended to Franklin all of Franklin’s deposits and certain other lia­ to help offset the massive net withdrawals of bilities to an assuming bank; that bank would funds that developed as that bank’s difficulties be allowed to select assets of Franklin up to became generally known. Between May 8 and an amount which, when added to the purchase October 8, 1974, when the bank was declared price bid, would equal the liabilities it assumed. insolvent, it suffered an outflow of funds The assuming bank would be required to keep amounting to $2.8 billion—over half its total most of Franklin’s offices open for at least 30 “footings.” By strenuous efforts, the bank suc­ days. On its part, the FDIC would: (1) indem­ ceeded in reducing its loans, investments, and nify the assuming bank against losses from cash by $1.1 billion during this interval. The unassumed liabilities; (2) advance supporting eventual $1.7 billion in Federal Reserve credit capital to the bank in the form of a subordinated assistance was necessary to offset the balance note; and (3) in return for the New York Reserve of the outflow. Bank surrendering its lien on the assets of During this 5-month period, the Comptroller Franklin that were transferred to the assuming of the Currency, the Federal Deposit Insurance bank, assume Franklin’s obligations to the New Corporation, and the Board of Governors, to­ York Reserve Bank, which would be repaid to gether with the Federal Reserve Bank of New the extent possible out of the remaining assets, York, were in frequent communication with but would in any event be fully repaid within each other in a joint effort to arrive at a perma­ 3 years whether or not sufficient collections had nent solution to Franklin’s difficulties. As you been made at that time. This last provision know, the Comptroller has the statutory respon­ assured that no loss would be incurred by the sibility of determining whether or not a national Federal Reserve System as a result of either its bank is insolvent. Upon such a determination emergency lending to Franklin or the purchase of insolvency, the FDIC must be appointed as by the New York Reserve Bank of Franklin’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 421 foreign exchange contracts. This latter purchase dragged on. We were concerned as to Franklin’s had been undertaken by the Federal Reserve on vulnerability to any new shock that might come September 24, 1974, in order to forestall possi­ along. And we had a painful awareness of how ble defaults on these contracts that could have Franklin’s debt to the Federal Reserve kept further seriously weakened confidence in foreign climbing closer to the probable maximum loan exchange markets, which at that time had al­ value of the acceptable collateral that the bank ready been shaken by defaults by a well-known could provide. For those reasons we at the German bank and by a succession of public Federal Reserve urged that remedial measures disclosures of foreign exchange losses by move forward as promptly as they could. The Franklin and other banks throughout the world. Comptroller and the FDIC, respectively, with During the summer, one after another possi­ their own statutory obligations to consider, had bility that would have permitted Franklin Na­ to effectively exhaust alternative solutions short tional to continue as an independent institution of receivership and to document liabilities and was investigated. By October 8, 1974, every minimize losses insofar as time and circum­ reasonable prospect of that kind had been ex­ stances permitted. It should not be surprising plored and found inadequate. The Federal Re­ that on occasions during those months the serve’s loan had served its purpose of enabling agencies found that their preferred priorities for Franklin to meet its day-to-day liquidity needs actions differed. When such instances became up to that point, but the total was approaching significant, however, hard work and good will the limit of available collateral. The FDIC’s overcame them. Fortunately, no new external plan for the transfer of Franklin assets and shocks developed, and by the time Franklin was liabilities was ready. In those circumstances, the determined to be insolvent a detailed and well- Comptroller declared the bank insolvent.1 The integrated plan for its succession unfolded ef­ FDIC as receiver thereupon proceeded to im­ fectively. As nearly as can be judged at this plement its plan. The outcome of its negotia­ stage, not a cent of depositors’ or taxpayers’ tions with possible purchasing institutions was money is expected to be lost in the process. that European-American Bank and Trust Com­ Although the Franklin National case was pany purchased assets and assumed certain lia­ concluded successfully, experience made it bilities of Franklin National. clear that increased attention needed to be paid An orderly transition has followed, although to stronger preventive and follow-up measures it will be some time before all aspects of this to reduce the possibility of similar situations transition will be finally completed. While in arising. Accordingly, the Federal Reserve Sys­ the end Franklin can be said to have failed, the tem strengthened its program covering banks provision for the uninterrupted continuation of under its jurisdiction to place increased empha­ its banking services through a successor institu­ sis on the identification, surveillance, and timely tion minimized adverse repercussions. resolution of current and potential problem bank Cooperation among the Federal bank regula­ cases. This action had first priority among the tory agencies, combined with consultation with broad sweep of studies addressing key problem the Treasury and the New York State Banking areas in banking supervision and regulation that Department, was instrumental in producing the I described in my testimony before this sub­ results I have outlined. Each agency had a committee last December 12, and about which distinctive role to play, and each role generated I will be reporting to you later in my testimony its own concerns. We at the Federal Reserve today. were especially interested in the adverse market Briefly, each Reserve Bank was asked, attitudes and questions about banking soundness among other actions, to make special efforts to that were being generated as the Franklin case identify member banks in its district that were or might be facing difficulties with regard to the 1For a more detailed explanation of this action, see quality of their assets or the balancing of fi­ the affidavit dated October 8, 1974, filed by the Comp­ nancing needs with the prospective availability troller of the Currency in the U.S. District Court of of funds. Second, with respect to State member the Eastern District of New York concerning the matter of the liquidation of Franklin National Bank. banks, a greater than usual concentration of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin □ July 1975 Federal Reserve examiner time and attention in certain problem bank and bank holding com­ was to be devoted to identified problem banks pany situations. The second recommendation during the remainder of 1974 and also through would amend the Act to grant the Board au­ 1975. In each such problem bank case, an thority to approve an acquisition of a bank appropriate and specific program for remedying across State lines by a bank holding company, its difficulties was to be established, including when the Board determines that a large bank, if need be direct discussions with the bank’s or a bank holding company controlling a large directors to confirm the commitment of top bank, is in severe financial difficulty, and the management to that task. Third, any member public interest would best be served if the bank banks experiencing unusual liquidity difficulties involved were acquired by an out-of-State hold­ because of a run-off of money market funds or ing company. I will discuss each of these rec­ because of public concern about the condition ommendations in turn, referring to the current of the banks were to be informed of the basis law, the main reason therefor, the key argu­ on which accommodation at the discount win­ ments for changing the law at this time, and dow would be made available. the Board’s reasons for recommending the spe­ The Federal Reserve has thus taken requisite cific amendments proposed in H.R. 4008. administrative steps to insure that greater em­ Certain time schedules for the provision of phasis is placed on identifying, monitoring, and notice and hearing2 were enacted as part of the following up problem bank situations. It is hu­ original Bank Holding Company Act of 1956, manly impossible—and even undesirable—for as a compromise between giving bank charter­ supervisors to prevent all bank problems; but ing authorities an absolute right to deny a hold­ it is practical to aspire, as we do, to recognizing ing company application to acquire a bank and problems early and moving promptly to try to giving such authorities only an informal con­ remedy them. There remains, however, a gap sulting role vis-a-vis the Board’s final decision in the range of feasible remedial actions that in the case. could be undertaken if preventive measures The Board in Section 1(1) of H.R. 4008 has should somehow not succeed in forestalling a recommended, first, that the regular 30-day no­ bank failure. In that eventuality, the most de­ tice period be shortened to 10 days if the Board sirable ultimate action in most cases is for the advises the supervisory authority that an emer­ bank to be taken over by another bank. Bank gency exists requiring expeditious action. Sec­ mergers, where permitted by State branching ondly, Section 1(1) as proposed would give the laws, can sometimes serve this purpose effec­ Board the authority to waive notice and hearing tively. The alternative of bank holding company requirements entirely if the Board finds that it acquisition of a failing bank, however, even must act immediately on an application to pre­ where permitted by State laws, is substantially vent the probable failure of a bank or bank inhibited by two Federal statutory constraints. holding - company involved in the proposed One enforces certain time delays in the approval transaction.3 Both of these suggested amend­ and consummation of all bank holding company acquisitions. The second effectively prevents 2Under existing law, the Board, before approving an application for the acquisition of voting shares or assets any holding company acquisition of banks of a bank under Section 3 of the Bank Holding Company across State lines. Act, must: (1) give notice to the Comptroller of the In our view, either or both of those limitations Currency if the applicant or bank involved is a national or district bank or to the appropriate State supervisory can interfere with actions needed to protect the authority if the applicant or bank involved is a State public interest in some cases. Accordingly, the bank; (2) allow 30 days within which the views and Board has recommended to the Congress sub­ recommendations of the Comptroller of the Currency or the State supervisory authority, as the case may be, stantive statutory changes, now embodied in may be submitted; and (3) if the supervisory authority H.R. 4008. so notified files a written disapproval of the application The first recommendation involves procedural within the 30-day period, provide a hearing on the application and base its decision on the record of that amendments to the Bank Holding Company Act hearing. designed to permit the immediate or expeditious 3The Board’s staff has noted that there apparently consummation of a transaction under that Act was an inadvertent omission in the printing of H.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 423 ments parallel provisions subsequently enacted However, the Bank Merger Act provides for in the Bank Merger Act—provisions that have an exception to this delay in problem cases, worked well in the nearly 50 instances in which while the Bank Holding Company Act does not. they have been used over the past 10 years. The Board is recommending that, in cases in­ In the Board’s judgment, the present require­ volving problem banks or bank holding compa­ ment for 30-day notice to the relevant bank nies, the consummation procedures of the Bank supervisor is both burdensome and unnecessary Holding Company Act be fully conformed to in the context of a problem bank or bank holding those in the Bank Merger Act. Accordingly, it company situation where the public interest re­ is proposed that, when the Board has advised quires immediate or expeditious action. From a supervisory authority of an emergency requir­ a practical standpoint, the primary supervisory ing expeditious action, consummation be per­ authority in such a situation would be actively mitted five calendar days after the date of ap­ involved in the process of screening potential proval. In cases where the Board has found that acquirers and would also be desirous of having it must act immediately to prevent the probable an acquisition quickly consummated. Similarly, failure of a bank or bank holding company, it the protracted hearing requirements in the case is recommended that immediate consummation of recommended disapprovals by the supervi­ be permitted. In the Board’s judgment, there sory authority are ill-suited to a failing bank or appears to be no public policy reason for not bank holding company situation where the pub­ having parallel consummation procedures for lic interest demands that decisions be made bank mergers and bank holding company ac­ quickly on the basis of available evidence. quisitions in problem bank situations, since the There is an additional statutory delay to be same reasons exist for not waiting 30 days for dealt with. Under existing law, the Board must the Attorney General’s competitive judgment in immediately notify the Attorney General of any both cases. As a practical matter, the Federal approval of a proposed bank acquisition, banking agencies in such situations have regu­ merger, or consolidation transaction under Sec­ larly followed the practice of informally con­ tion 3 of the Bank Holding Company Act, and sulting with the Attorney General in advance such transaction may not be consummated be­ in any case large enough to raise substantial fore the 30th calendar day after the date of competitive questions. approval by the Board. By effectively eliminating bank holding com­ This requirement was added to the Bank panies from bidding in emergency bank situa­ Holding Company Act in 1966 in order to tions, the existing statutory delay provisions in conform with the standard consummation pro­ the Bank Holding Company Act have unneces­ cedures being established in the Bank Merger sarily limited the number of potential acquirers Act. The purpose of the provision was to elimi­ of a problem bank. This can increase the anti­ nate conflicts between the Board’s decisions competitive risks in such acquisitions by often under the Bank Holding Company Act and the limiting the pool of potential acquirers to banks Attorney General’s enforcement of the antitrust already in direct competition with the problem laws, which might otherwise require the un­ bank, for example, in the case of Franklin winding of a transaction after that transaction National Bank, other New York City banks. The had been approved under the Bank Holding holding company can be a procompetitive form Company Act. of bank expansion, and its use should not be effectively foreclosed in infrequent problem 4008 and H.R. 5331, as the bills provide that notice bank situations because of delay requirements and hearing requirements may be dispensed with if the Board finds that it must act immediately “to prevent not similarly imposed in bank mergers. Waiver the probable failure of a bank holding company” in­ of the usual delay provisions undoubtedly would volved in the transaction. This provision should read be warranted in only a small number of cases, “to prevent the probable failure of a bank or bank holding company” involved in the transaction. Thus, and in those cases the waiver should produce it is recommended that page 3, line 17, of H.R. 5331, net public benefits. and page 3, line 11, of H.R. 4008 be amended by Another—and more sensitive—constraint on inserting “bank or” before “bank holding company” in each such line. bank holding company acquisitions is geo­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin □ July 1975 graphical in nature. Under the Bank Holding passing the Bank Holding Company Act. In Company Act, the Board may not approve any most of our States the number of locally owned further acquisition of a bank by a bank holding banks that are big and strong enough to absorb company across State lines.4 This provision was a large problem bank are very few. The only made part of the original Bank Holding Com­ smaller banks strong enough to undertake such pany Act of 1956 in order to halt the further a venture may be those affiliated with powerful expansion of several large multi-State bank commercial or financial interests domiciled ei­ holding companies then in existence. It was ther in this country or abroad. based in large part on the concern of the Con­ The problem created by the constraints im­ gress, that, unless this trend were halted, wide­ posed by Section 3(d) has been sharpened as spread and frequent acquisitions by major bank banks, particularly large banks, have moved holding companies could eventually lead to an increasingly from asset to liability management. undue concentration of banking resources in the This shift in emphasis has led many larger United States. In particular, it was thought that, institutions to search far afield for money market absent this provision, holding companies would funds. While this has often been of considerable be used to avoid the multi-State branching pro­ benefit to the customers and communities they visions of the McFadden Act, and thus it was have served—particularly in those areas where also intended to preserve the rights of the States widespread branching is not permitted and local in this area.5 deposit generation is thereby limited—liability The Board is of the opinion that Section 3(d) management has increased banks’ exposure to could, in the case of a large problem bank or the risks created by any substantial net outflow a problem bank holding company controlling a of such nonlocal and often volatile funds. large bank, operate in contravention of both When adverse news triggers enough outflows national and local interests. The limitation to of funds to significantly weaken a bank, it may in-State bidders may, in the case of a large become necessary in the public interest to fold problem bank, severely limit the number of it into a larger and stronger institution. As you potential acquirers and result in an increased know, this occurred in New York and Califor­ concentration of banking resources within a nia, where big in-State banks were available to State—contrary to the intent of the Congress in acquire the problem banks involved. Had insti­ tutions of the size of Franklin National or of 4 The precise words of Section 3(d) provide that the the United States National Bank of San Diego Board may not approve any application under Section 3 of the Bank Holding Company Act: . . which failed in many other States, however, no banks will permit any bank holding company or any subsidiary in those States would have been large enough thereof to acquire, directly or indirectly, any voting to acquire them. In such circumstances, the need shares of, interest in, or all or substantially all of the assets of an additional bank located outside of the State to be able to arrange acquisitions across State in which the operations of such bank holding company’s boundaries would become very real. banking subsidiaries were principally conducted on July The Board therefore recommends several 1, 1966, or the date on which such company became a bank holding company whichever is later.” amendments to the Bank Holding Company Act 5Under the terms of this provision, a bank holding designed to permit out-of-State acquisitions in company can only acquire a bank outside of its principal certain emergency and failing bank situations State if the State in which such bank is located takes involving a large bank or bank holding company action to specifically permit such acquisition. If a State took such action, the Board would still have to decide controlling a large bank. Under Section 1(3) of the application under the statutory standards of the Bank H.R. 4008 as proposed, the Board would have Holding Company Act. At the time of this Act’s passage the authority to make exceptions to the multiin 1956, no State granted such permission. Except for Iowa, which has enacted a law giving a single grandfa­ State prohibitions of Section 3(d) whenever the thered multi-State bank holding company permission to Board finds that an emergency requiring expe­ acquire additional banks in that State, and Maine, which ditious action exists with respect to a bank or recently enacted a law that would allow acquisition of a Maine bank by an out-of-State bank holding company bank holding company, or that it must act im­ if a Maine bank holding company is given reciprocal mediately in order to prevent the probable fail­ rights in that holding company’s State, the situation ure of a bank or bank holding company. The remains essentially unchanged with no other States granting such permission. proposed authority would be limited, however, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 425 to cases involving a bank having assets in excess United States National Bank of San Diego). of $500 million or a bank holding company Thus, the Board anticipates that this provision controlling a bank having assets in excess of would be applicable in only a handful of cases $500 million. There are three basic reasons for where there may be significant effects upon the limiting this authority to the case of a large bank national and international economy. or bank holding company controlling a large Under Section 1(3) of H.R. 4008, the Board bank: first, the failure of such an institution can could use this authority to approve a multi-State have damaging effects in both national and acquisition only when it finds, in weighing the international markets and on the national econ­ statutory competitive and other factors, that the omy; secondly, there may be few, if any, public interest would best be served if the bank prospective acquirers of such an institution or banks involved were acquired by an out-ofwithin any State; and thirdly, the most likely State bank holding company. The Board thus in-State acquirers are likely to be institutions anticipates that this authority would rarely be of comparable or greater size, which might often used and only in cases presenting very special pose problems under the antitrust laws and circumstances, such as those involving Franklin threaten an increased concentration of banking National Bank. In our view, these relatively rare resources within the State. situations would not contravene the central pur­ The Board chose a $500 million asset cutoff pose of the multi-State prohibition of the Bank figure because it would cover major money Holding Company Act, which was directed at center and regional banks—whose failure might preventing large concentrations of financial re­ have an adverse effect on regional, national, or sources through frequent multi-State acquisi­ even international financial markets—but yet tions of banking institutions. would not be so extensive an exception as to The Board is sensitive to the fact that the create a potentially significant loophole to the prohibition on multi-State branching was de­ multi-State prohibitions of the Act. Also, in signed to prevent the evolution of a few large cases involving smaller problem banks, local banking institutions. While there would be only acquisitions, where appropriate, can be more a very limited number of instances in which the readily arranged by the FDIC and State authori­ Board would consider making exceptions to ties than can transfers of the liabilities and assets Section 3(d), the amending language could be of large institutions. narrowed even more than was originally sug­ The choice of any cutoff figure involves gested. A strict limit could be placed on the various public policy considerations by the number of acquisitions any single bank holding Congress. The Board stands ready to supply the company would be allowed to make under such subcommittee with additional data on this issue an exception. This limit should be more than if that would be helpful. On the basis of data one, in order not to encourage potential bidders prepared by the Board’s staff, a $500 million to wait until an ideal acquisition opportunity was cutoff would cover not only the large money presented, but it could be less than five, in order center and regional banks but also, in most to forestall excessive expansions of financial cases, the largest bank in any State.6 From our power. In our view, this kind of limit would analysis of cases in which emergency or failing serve to preclude any possibility of undue con­ bank procedures have been used under the Bank centration of economic resources being created Merger Act, it appears only three banks ac­ through exceptions to Section 3(d).7 quired under immediate or expeditious action 7 As a corollary to its recommended amendment of procedures have had assets in excess of $500 Section 3(d), the Board has felt it necessary to also million (Security National Bank of Long Island, recommend an amendment in Section 2 of H.R. 4008 Franklin National Bank of New York, and overriding certain provisions of State law in situations involving a problem bank or bank holding company where expeditious or immediate action is required. 6From the Board’s figures, it appears this asset cutoff Section 7 of the Bank Holding Company Act reserves would include some 210 commercial banks across the to the States their rights to exercise such powers and country, including the largest bank in 39 States and the jurisdiction that they now or in the future may have District of Columbia, and the two largest banks in 35 with respect to banks, bank holding companies, and States and the District of Columbia. subsidiaries thereof. In problem bank or bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin □ July 1975 The distinguished chairman of this subcom­ in dealing with problem bank or bank holding mittee has also introduced H.R. 5331, a bill that company situations, I would like to proceed to embodies the Board’s recommended procedural comment on the other studies that the Board amendments to the Bank Holding Company has been conducting to develop better means Act, but which omits the recommended amend­ for preventing such situations from occurring ments to the multi-State prohibitions of the Bank and resolving them as effectively as possible if Holding Company Act. I hope I have said they should arise. You may recall that in my enough here this morning to make clear why testimony before this subcommittee on De­ the Board believes that the public interest would cember 12, 1974, I described the general scope best be served if the Congress enacted both the of our efforts and the problem areas on which procedural and multi-State amendments sug­ we were focusing our attention: the attenuation gested. We defer to the Congress on the ques­ of bank capital produced by the rapid expansion tion of whether these amendments might better of bank assets; bank liquidity problems, partic­ move through the legislative process separately ularly heavy reliance on liability management, or linked together. We do believe that they can the consequent creation of highly interest-andeliminate what might otherwise at some time confidence-sensitive instruments, and the mak­ prove to be a fatal constraint upon the regula­ ing of excessive loan commitments; a deterio­ tors’ ability to preserve a problem bank’s serv­ ration in the quality of bank assets; increased ices rather than to close it. foreign exchange risks; and increased risk of Having discussed the reasons why the Board losses in bond trading departments of banks. (A believes that the proposals contained in H.R. final problem area that I touched upon at that 4008 would be particularly helpful to the Board time related to the need for more expeditious resolution of problem bank cases, but I have company situations, the normal circumstances that may already commented on that subject in my pre­ have led a State to enact a statute prohibiting the vious discussion of the proposals contained in formation of bank holding companies within its borders H.R. 4008.) or otherwise restricting the entry of out-of-State bank holding companies do not apply and therefore such The Board expects very shortly to place be­ provisions should not be controlling when the Board fore the Congress several proposals for legisla­ has approved such application under the immediate or tive action that are designed to equip us, and expeditious action provisions recommended in H.R. 4008. In such cases, the national interest argues that the other bank regulatory agencies, to accom­ Federal law be supreme. In practical terms, even though plish better our goal of more effective preven­ a State may favor an acquisition by an out-of-State tion of potentially unsafe or unsound practices. holding company approved by the Board under its immediate or expeditious action provisions as an alter­ These proposals are now in the final stages of native to failure, it would probably be impossible either discussion among the Board, the FDIC, and the for a State legislature to enact in time any necessary Comptroller of the Currency. I would like to amendments to its laws, or for a State court to interpret the terms of an unclear statute. The delays involved outline the major ones briefly for this subcom­ in trying to pursue either of the above courses of action mittee to give you a clearer sense of the thrust could be crucial. Section 2 of H.R. 4008 would solve of our efforts. these problems by providing that in any case where the Board has approved an application under the immediate The first of the proposals we expect to be or expeditious action provisions of H.R. 4008, the bringing before you is directed primarily at holding company may acquire and operate the bank strengthening the penalties in statutes imposing involved as a subsidiary notwithstanding Section 7 or any provision of State law that would otherwise prevent constraints on transactions among the banking the acquisition or restrict the operations of that holding subsidiaries of bank holding companies, their company. parent firms, and other affiliates. It seeks, Section 2, however, leaves intact State restrictions on multibank holding companies, so that an out-of-State through amendment of the Federal Reserve Act, bank holding company that acquired a bank with the to subject member banks and their directors, Board’s approval under the immediate or expeditious officers, and employees, or agents to penalties action provisions could not gain a competitive advantage over an in-State holding company by acquiring a second for violations of, among other provisions, Sec­ bank under those provisions. The McFadden Act re­ tions 22 (relating to transactions between mem­ strictions on multi-State branching would not be affected ber banks and their directors and loans to exec­ by Section 2 of H.R. 4008 as such restrictions are a matter of Federal law. utive officers) and Section 23A (involving loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 427 and investments in affiliates). Another provision assistance to us in implementing a program of of this proposal would amend the Bank Holding preventive measures that should prove ex­ Company Act to permit the Board to seek the tremely helpful in reducing the possibilities of imposition of civil penalties on companies or future unsound banking practices. individuals that violate the Act. This provision The studies that the Board has been pursuing would, we believe, increase significantly the not only have produced the legislative proposals deterrents to unlawful or unsafe transactions that I have described but have also led us to within bank holding companies. undertake a series of administrative and regula­ A second proposal addresses the problem of tory actions, all designed to assist us in pre­ possible misuse of bank assets by insiders. venting troublesome situations from materi­ Under this proposal, Section 22 of the Federal alizing in the key problem areas we have iden­ Reserve Act would be amended to aggregate tified. The Board has thus taken steps within loans by a member bank to an officer, director, the scope of its current authority to detect po­ or significant stockholder and to any corpora­ tential banking problems at an early stage in tions that such person controls for purposes of their development. applying legal lending limits. This proposal One of the first of these actions I have already would limit the amount that could be loaned mentioned—the step taken last fall to improve to all interests controlled by one individual to surveillance of troublesome bank cases. the same amount as could be loaned to that A second step to promote early detection of person alone. such cases was taken earlier this year when an A third proposal would strengthen the interagency early warning system was instituted Board’s authority to institute executive removal by the Board in cooperation with the Federal actions designed to prevent the continuation of and State banking supervisory agencies. This unsafe and unsound banking practices. Amend­ system has enabled all the relevant bank regula­ ments would be made to Section 8 of the Fi­ tors to be promptly aware of any adverse find­ nancial Institutions Supervisory Act to eliminate ings uncovered in supervisory examinations of the current requirement that acts of personal bank holding companies or the bank subsidiaries dishonesty be involved before officers or direc­ thereof. tors of a banking institution can be removed by In this same area of problem bank and bank a bank regulatory authority. This change would holding company situations, the Board has for­ permit such individuals to be removed for gross mally adopted guidelines delineating a gradu­ mismanagement in the form of practices that ated range of alternative procedures to be im­ threaten substantial financial harm to the bank. plemented in correcting problem bank holding A fourth proposal would give the Board au­ company cases. This step has served to set out thority to order divestiture of subsidiaries of clearly and systematically the corrective actions bank holding companies when continued own­ that the Board and the Reserve Banks had al­ ership of a bank holding company constitutes ready begun to employ in remedying difficult a serious risk to the financial safety, soundness, cases. or stability of the bank holding company’s sub­ In the area of foreign exchange operations at sidiary bank or banks. While such action by the banks, we have recognized that floating ex­ Board would undoubtedly be taken only in the change rates have increased the risk of potential most serious situations, we believe the ability losses (or gains) on a given size net open posi­ to require such divestitures is an important one tion in foreign currencies. In addition, the for the Board to have. Its existence alone should danger of losses occurring as a result of poor serve as a strong deterrent to dangerously unsafe judgment at the management level or as a result actions by bank holding company manage­ of unauthorized trading under inadequate inter­ ments. nal controls probably increased with the growth We believe that these proposals, and others in the worldwide volume of foreign exchange that may be forthcoming as a result of discus­ market transactions—in which a growing num­ sions with our colleagues in the other Federal ber of U.S. banks participated. bank regulatory agencies, will be of substantial To assess better the level of foreign exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin □ July 1975 risks now faced by U.S. banks, a review has proposed regulatory changes to permit greater been conducted by the Board, in consultation flexibility by banks in the issuance of notes and with the Comptroller, of the operations of a debentures to bolster their capital structure. sample of banks engaged in such activities. As We anticipate that application of these pro­ a result of this survey, we have concluded that posed criteria should tend to promote the prac­ additional legislative authority is not required tice by State member banks of issuing new debt to improve the supervision of banks’ foreign on an adequate cushion of equity capital. The exchange operations. Steps have been taken to guidelines should also help to prevent banks encourage banks, where necessary, to utilize from unduly concentrating their maturing debt more adequate internal audit and control proce­ in any one year. In addition, these guidelines dures. Furthermore, because of the special vul­ are intended to prevent the inclusion of terms nerability of foreign exchange activities, the in such debt issues that could be regarded as Federal Reserve is working closely with the being in conflict with the public interest. Comptroller to improve the surveillance of these If we are successful in accomplishing those bank operations, through examinations and re­ objectives with regard to issues of new subordi­ porting systems. Perhaps the most encouraging nated debt by banks, we believe that the prob­ information I can relay to you in this field, lems connected with the attenuation of bank however, is the stream of reports we are receiv­ capital that has been experienced over the past ing that bank managements of their own volition decade should be noticeably ameliorated. have sharply tightened their prudential controls I would also like to report briefly on the over their foreign exchange departments. progress of the Board’s efforts to improve bank Studies are continuing on methods of im­ holding company supervisory and regulatory proving the entire range of bank examination policy over the longer run. I am pleased to say practices and procedures, including the use of that considerable headway has been made in sophisticated reporting and management infor­ designing and moving to initial implementation mation systems to supplement the bank exami­ of a more systematic analytical program to nation process. Work is going forward on means monitor bank holding companies’ operations of detecting and limiting excessive loan com­ more closely. Reporting schedules have been mitments and other off-balance-sheet promises developed to feed timely information covering to lend that may expose banks to undue liquidity the full range of bank holding companies’ ac­ pressures. Still other work is focused on tivities, including intracompany transactions, methods to detect and discipline poor quality into a partially computer-based analytical sys­ bank loans more effectively. Ways are also tem that is being designed to focus immediate being sought to better limit the level of risk attention on potential problem situations as they exposure in banks’ bond trading activities. evolve. The information capability the Board As I mentioned previously, the Board has will possess once this work has been completed been much concerned with problems associated should improve our capacity to detect and cor­ with the attenuation of bank capital and pres­ rect bank holding companies’ problems at an sures placed on bank liquidity. Additional work early stage of their development. is therefore under way at the Board to develop The Federal Reserve is also endeavoring to better standards of what constitutes “adequate” look more broadly at the bank holding company liquidity, both for our own better guidance and movement as it has unfolded from 1970 to 1975. that of member banks. The Board has also We are trying to determine to what extent, if recently restructured reserve requirements on any, bank holding companies and their expan­ time deposits to encourage more prudent liquid­ sion into nonbanking areas may have contrib­ ity management at banks. uted to financial strengths and financial difficul­ Earlier this month the Board released for ties. We expect that this effort will shed some comment guidelines that we propose to apply useful light on a subject that has at times stimu­ in evaluating requests for approval of new sub­ lated sharp divergences of views. ordinated debt issues by State member banks. I should also note that the Board has reviewed These guidelines were issued in connection with the recent and prospective growth of foreign- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 429 owned banking operations in this country and good many alternatives to be analyzed and many their proper place in our structure of banking considerations to be explored. It might be in­ supervision. While I do not propose to cover formative to your subcommittee if I were to all the details of that complex subject today, summarize the more plausible and thought-pro­ I would point out the Board’s conclusion that voking alternatives we have considered, and all banks, branches, and agencies that are lo­ outline what seem to be the key advantages and cated in the United States but owned by foreign disadvantages of each. One cautionary note is banking institutions would be most effectively in order, however, before I proceed. In this and equitably regulated if they were brought delicate subject area, there are few points on under the provisions of the Bank Holding Com­ which facts can prove that one view is right pany Act. The proposed legislation we have and another wrong. Most of the major questions forwarded to the Congress in this area (H.R. are matters of judgment, usually involving 5617) contains provisions to this effect. speculation as to what might happen were things In looking back on this recent work the Board to be done differently. Sometimes these are has done to strengthen our supervision and reg­ judgments on which reasonable men can and ulation of the Nation’s banking institutions, the do differ. I cannot eliminate that ambiguity; I need for a large number of changes—some can only report to you the judgments of the legislative, some regulatory, many administra­ majority of the Board as plainly as I can. tive—has become evident. Some of these At one end of the spectrum of alternatives needed changes have been minor, others have that we considered was consolidation of all seemed sufficiently complex or significant to Federal supervisory and regulatory functions. warrant taking the time of this subcommittee A number of advantages would undoubtedly to report. At this juncture in the history of our accrue from an effective consolidated Federal Nation’s banks, the severe pressures to which bank supervisory agency. The principal benefits those institutions were recently subjected have we perceive are the following: been significantly reduced. We are now at a 1. Such an agency would bring about uni­ point where it is possible, as it was not then, formity in Federal regulation, supervision, and to consider and to undertake a range of prudent examination of banks. In addition it would result reforms to further strengthen our banking insti­ in uniformity on decisions concerning merger tutions and thereby to help insure the continued and branching applications. well-being of this country’s vital banking sys­ 2. Presumably such a consolidation would tem. eliminate some duplication of efforts and lead All the faults we have found were not in the to a more efficient use of supervisory and ex­ banking system, however; we have found some amination personnel. It would also remove any shortcomings in ourselves as well. Focusing as problems arising out of consultations between we have on the key banking problem areas has the agencies and resulting delays in decision­ also helped us to understand more clearly in making. what ways inadequacies in the structure of bank 3. We also believe there could be advantages regulation itself may have contributed to the from the development of consistent data that development of some of these problems. would permit fuller analysis of the banking When I testified before your subcommittee industry as a whole and permit more prompt last December, I mentioned then that the con­ identification of developments that might affect cluding project in the Federal Reserve studies the stability of the banking system. would be possible reforms of the Federal bank 4. Finally, the consolidation of three Federal supervisory agencies. In the light of the work agencies into one would preclude the possibility just described that has been pursued in other of banks changing their organizational status in areas, we have turned our attention within the order to obtain more favorable treatment from Board to the structure of the Federal banking a different Federal supervisor. agencies. We are also consulting with other Objections to consolidation take several agencies on this subject. forms, such as: As you might imagine, there have been a 1. A single Federal supervisory agency would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 Federal Reserve Bulletin □ July 1975 be very powerful and might have a tendency listed for consolidation. In summary, the present to stultify the ability of commercial banks to regulatory system permits more innovation and adapt to changing circumstances or be incon­ experimentation in new bank activities and siderate of the equities of the parties affected supervisory procedures. Any adverse effects by its rules. At the least, it would result in the may be confined to one segment of banking elimination of most of the checks and balances during the experimentation period. If, however, inherent in our present bank regulatory struc­ the innovation is successful, the changes can ture, which do limit the power of individual then be adopted by the other agencies. More­ supervisors. over, the agencies can voluntarily communicate 2. One agency would not offer as great a and cooperate to the limits of their power and possibility for experimentation and innovation good will in an endeavor to formulate uniform in bank regulations and supervisory procedures policies and procedures and keep them consist­ as now exists when three agencies divide the ent and up to date. Federal responsibilities. The disadvantages of the present system can 3. Changing from the present arrangement to be read in the number of occasions when vol­ a single Federal agency could produce some untary cooperation among the agencies did not serious transitional problems, such as the possi­ produce optimal results. Episodically over the bility of losing some of the valuable experienced years, voluntary cooperation has not been a examination and supervisory personnel now in sufficiently powerful incentive to consistently the individual agencies. Serious personnel produce vigorous, timely Federal supervisory problems could develop in meshing the three action that was in harmony with other supervi­ present Washington and field-based forces. sory policies and uniform across the Federal Particular problems are also presented in agencies. Moreover, the diffusion of authority considering in which agency consolidation among the agencies is great enough so that it should take place. For example, a majority of is often hard to pick the agency or the officials the Board of Governors would have some con­ to hold accountable for such shortfalls. In such cern about consolidation in a new agency or one an environment, supervisory innovations—par­ outside of the Federal Reserve System. The ticularly those that pinch the subject banks—can experiences of recent years have made members be inhibited if the banks that are adversely of the Board of Governors particularly con­ affected have another supervisory jurisdiction scious of the importance of involvement in bank open to them. supervision and regulation in the consideration A third alternative is to divide responsibility of monetary policy. We believe that the condi­ for Federal bank supervision and regulation be­ tion of the banking system and information tween two agencies. about individual banks is an important input for One possibility that has been advanced is that monetary policy formulation that would be lost all Federal bank regulations should be placed or substantially reduced if the Federal Reserve in one agency and all Federal bank examination had no role in the regulation or examination and enforcement procedures in a separate functions. agency. Many of the advantages of complete On the other hand some in the System have consolidation—such as uniformity, elimination reservations about the consolidation of these of duplication, more efficient use of personnel, functions in the Board of Governors. They are and elimination of the possibility of banks concerned that adding the responsibility for all shopping among Federal supervisors—could be bank supervision and regulation to the existing accomplished by this change. At the same time, Board responsibilities might detract from the such a division would maintain some significant time and attention given to the Board’s primary element of checks and balances in the field of responsibility, monetary policy. bank regulation. At the other extreme, we considered retaining However, many of the disadvantages of con­ the present regulatory and supervisory system. solidation would also be present, such as the By and large the advantages and disadvan­ danger of a single regulatory body becoming tages of this alternative are the converse of those wedded to the past and reluctant to adapt to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 431 changing times. The possibility of curtailed ex­ stand that the Comptroller’s studies have perimentation in regulatory procedures and a reached similar conclusions. possible erosion of some regulatory checks and There is a need for more realism, consistency, balances would also be present. In addition there and uniformity in examination standards and is a serious risk that the separation of regulation procedures. We believe that there needs to be from examination and enforcement would an increased emphasis given to more timely weaken the effectiveness of bank examinations reports and information systems that would and reduce cross-fertilization between func­ supplement the practice of on-site examinations. tions. Such a division could detract from the Recent experience also demonstrates that stature of the field forces and hinder field exam­ some weakness exists in enforcement proce­ ination efforts to resolve problems. Moreover, dures. There needs to be more effective and whereas some coordination and jurisdictional consistent follow-up of examiners’, and other problems might be eliminated with this type of supervisory, recommendations to banks, in structure, it is certainly possible that other order to assure that the banks take those actions problems, perhaps more serious, would be necessary to correct the identified problems in created. reasonable time. A fourth alternative I might mention is to The resolution of these problems might be provide for representation of the Board of Gov­ helped if each of the three Federal banking ernors in an expanded Office of the Comptroller. agencies were to delegate some specific deci­ It is possible that improved coordination of sion-making authority in the field of examina­ key supervisory and regulatory programs could tion procedures to a representative on a new be obtained if the Comptroller’s Office were interagency group, which might be designated converted to a board with one member being the Federal Bank Examination Council. The a Governor of the Federal Reserve. Direct Board Council might be composed of Board members representation in the activities of the Comp­ or senior officials responsible for bank exami­ troller offers some advantage, since all national nation from each of the three banking regulatory banks under the supervision of the Comptroller agencies. That group would not supplant the are also member banks of the Federal Reserve present Interagency Coordinating Committee, System. Moreover, under present practices the which ought to continue to provide a forum for Comptroller’s examiners are responsible for en­ consultation on regulatory and policy questions forcing numerous Federal Reserve regulations affecting not only banks but nonbank thrift in­ applicable to national banks. Conversion of the stitutions as well. The distinctive features of a Comptroller’s Office from a one-man to a Board new Examination Council would be that its operation would also provide the benefit of members would be assigned responsibility for group decision-making and provide a balancing particular areas of bank examination proce­ of viewpoints in the supervision of national dures, given decision-making power in those banks. areas, and held accountable by their agencies However, the creation of a board for the for the development of suitable standards and Comptroller’s Office could well have the disad­ practices in such areas. vantage of producing a less expeditious and less A council of this nature could foster greater efficient operation—a result that can often flow uniformity and consistency in the modernization from administration by a committee. of numerous bank examination and enforcement A fifth possible alternative is increased and activities without most of the disadvantages more structured coordination of examination feared from complete consolidation. In addition, functions. it would permit undertaking a limited and cir­ Our review of the other projects undertaken cumscribed consolidation effort promptly, on an by the Board’s Committee on Bank Regulatory experimental basis, with flexibility to allow for and Supervisory Policy has shown that one of revisions that prove desirable. the most important areas calling for attention To be sure, such a Bank Examination Council is the problem of revising and updating exami­ would have its disadvantages also. Because of nation and enforcement procedures. I under­ its relatively narrow scope, a number of impor­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin □ July 1975 tant issues in bank supervision would be beyond Third, an appropriate step forward in the its ability to solve. Since it would derive its Federal bank supervisory structure at this time authority by delegation, there is the chance that would be the establishment by the agencies of its members would be diffident in their actions a Federal Bank Examination Council along the out of concern for possible termination of their lines described above. It is, as I have said, an delegated authority. There is also the possibility experimental and evolutionary idea, rather than that its members might show less initiative in a radical and irreversible one—and the Board tackling problems than would an individual believes the former rather than the latter is what agency acting on its own. is called for today. As the Board of Governors has reviewed all The Board is prepared to delegate selected these alternatives, and the situations to which decision-making authority in the field of bank they are addressed, a majority of the Board has examination procedures to our representative on come to the following tentative conclusions on such a Council forthwith, and I hope our sister this subject. Federal banking agencies will be similarly in­ First, some change in the present structuring clined. We are further prepared to ask that of Federal bank supervision is desirable, al­ Council to study several broader supervisory though not essential. Federal bank supervision issues on a priority basis, with a view to devel­ has done many things right, and it is not so oping recommendations to the parent agencies flawed as to necessarily thwart key objectives for uniform, up-dated policy positions. of public policy in this field. On the other hand, Assuming that a Bank Examination Council the present diffusion of authority and respon­ is established, experience will soon show how sibility among three Federal agencies is condu­ productive it can be in actual practice and how cive to some confusion, uncoordinated initia­ far the scope of its activities might usefully be tives, occasional delays and misunderstandings, extended. The Council’s success will require a and sometimes a subtle competition to relax or sincere effort on the part of all three agencies forego appropriate constraints on banking insti­ to arrive at meaningful changes and to minimize tutions. What is called for is measured action disagreement on less essential items. Its per­ that ameliorates these weaknesses without sap­ formance will depend most of all on the com­ ping the strengths of the present agency struc­ petence and good will of the individuals desig­ ture. nated to serve on it. But that caveat attaches Second, the Federal Reserve, as the Nation’s likewise to virtually every other design of the central bank, needs to be involved in the process structure of the Federal banking agencies. of bank regulation and supervision. Now, more The Board appreciates the continuing interest than ever before, the Fed’s key roles as mone­ of this committee in the entire subject of bank­ tary policy-maker and as lender of last resort ing regulation and supervision, and we look reach into territory conditioned by prevailing forward to your deliberations and recom­ bank supervisory and regulatory policies. Each mendations. We will be glad to continue to of those sets of public policies increasingly report to you on our activities and will make affects the effectiveness of the other. Their close recommendations for further legislation as we coordination is much to be desired. see such needs develop. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

433 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON MAY 20, 1975 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services—which had fallen sharply in the fourth quarter of 1974 and the first quarter of 1975—was declining much less rapidly in the current quarter and that the rise in prices was moderating further. Staff projections, like those of 5 weeks earlier, suggested that real economic activity would turn up later in the year and that the rise in prices would continue to slow. The pace of decline in industrial production, which had been less rapid in March than in the preceding 4 months, moderated further in April. Nonfarm payroll employment changed little and total employment rose, but the unemployment rate increased fur­ ther, from 8.7 to 8.9 per cent, as the labor force continued to grow at a considerable pace. According to the advance report, retail sales had risen in April, despite a further decline in the number of new cars sold. The index of average hourly earnings for private nonfarm pro­ duction workers was unchanged in April, after having risen sharply in March; over the first 4 months of the year the rate of advance in the index was considerably less rapid than that in the second half of 1974. Average wholesale prices of industrial commodities changed little in April, as in March, while wholesale prices of farm and food products increased sharply, following 5 months of large decreases. In March the rise in the consumer price index had slowed further from the pace in the first 2 months of the year. Staff projections still suggested that in the current quarter the decline in real GNP would be small and that nominal GNP would turn up, although expectations now were for only a slight rather than a substantial increase in residential construction. It was still anticipated that inventory liquidation would moderate from the exceptional pace in the first quarter and that personal consumption expenditures would expand but that business fixed investment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 Federal Reserve Bulletin □ July 1975 would decline further. The projected upturn in real GNP in the second half reflected expectations that growth in consumption expenditures would accelerate in response to expansive fiscal policy measures, that the upturn in residential construction would gain momentum, and that the pace of inventory liquidation would moderate further. Since mid-April the average exchange value of the dollar against leading foreign currencies had receded somewhat, but it was still slightly above the low in early March. The U.S. foreign trade balance—which had been in large deficit in the last three quarters of 1974—shifted into substantial surplus in the first quarter of this year, in considerable part because the volume of imports was reduced by the decline in business activity in this country. Net outflows of funds through banks expanded substantially in the first quarter, as outstanding loans to foreigners continued to increase while liabilities to foreigners declined. Total loans and investments at U.S. commercial banks continued to expand at a slow pace from the end of March to the end of April. Outstanding loans to businesses declined further, as business demands for credit remained weak both at banks and in the commercial paper market; outstanding loans to nonbank financial institutions, securities dealers, and consumers also declined, while real estate loans increased by only a modest amount. As in February and March, banks increased their holdings of U.S. Government securities considerably. Growth in both the narrowly defined and the more broadly defined money stock (Mx and M2)—which had been substantial in March—was moderate in April, as disbursements of income tax refunds slowed to about the pace of a year earlier. The measure of the money stock that includes deposits at nonbank thrift institu­ tions (M3) grew more rapidly; although net inflows to thrift institu­ tions subsided from the extremely high rates in March, they remained substantial. In April, as in the preceding 2 months, banks reduced the outstanding volume of large-denomination CD’s in response to the growth in other deposits and to the continued weakness in loan demand, and the bank credit proxy grew at a relatively slow pace. On May 1 the Treasury announced that it would auction up to $5 billion of notes and bonds, of which $3.8 billion represented Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 435 refunding of publicly held notes that were to mature on May 15. In auctions on May 6, 7, and 8, respectively, the Treasury sold $2.75 billion of 3^-year notes at an average price to yield 7.7 per cent, $1.5 billion of 7-year notes at an average price to yield 8.0 per cent, and $750 million of 30-year bonds at an average price to yield 8.3 per cent. The Treasury also announced on May 1 that its over-all borrowing needs for the current fiscal year would be $5 billion less than had been previously stated, owing to larger-than-expected receipts of taxes. System open market operations since the April 14-15 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with somewhat more rapid growth in monetary aggregates over the months ahead than had occurred on average in recent months, while taking account of the forthcoming Treasury financing and of developments in domes­ tic and international financial markets. The monetary aggregates had been expected to grow at relatively rapid rates in the April-May period—because of the large volume of tax rebates scheduled to begin in May, of the rise in nominal GNP anticipated for the second quarter, and of the lagged effects on the demand for money of earlier declines in short-term interest rates—and operations initially had been directed toward maintaining about the prevailing bank reserve and money market conditions. However, data that became available subsequently suggested that in the April-May period the growth rate of Mx would be near the lower limit of the range of tolerance that had been specified by the Committee and growth in M2 would be below its tolerance range. Accordingly, operations were directed toward achieving some easing in bank reserve and money market conditions, although the System proceeded cau­ tiously in order to avoid exaggerated market effects during a period of heavy Treasury financing. In the days preceding this meeting the Federal funds rate was about 5Vs per cent, compared with a rate of about 5Vi per cent shortly before the April meeting. Short-term market interest rates—which had risen a little between mid-March and mid-April—declined somewhat in early May, re­ flecting the Treasury’s announcement of reduced borrowing needs, the easing in money market conditions, and the continued weakness in business demands for short-term credit. On the day before this meeting the market rate on 3-month Treasury bills was 5.11 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Federal Reserve Bulletin □ July 1975 cent, compared with 5.53 per cent at the time of the April meeting. Effective May 16, Federal Reserve discount rates were reduced from 6*A to 6 per cent at 10 Reserve Banks; shortly thereafter, rates were reduced at the remaining 2 Banks. Yields on longer-term securities rose in late April but turned down after the beginning of May; over the inter-meeting period they changed little. The volume of public offerings of corporate bonds in April, although smaller than in March, was still large, and an increase was in prospect for May. Offerings of State and local government issues in April and the calendar for May also were heavy. Yields on home mortgages rose somewhat during April, after having declined persistently since September of last year. At its previous meeting, the Committee had agreed that growth in the monetary and credit aggregates on average over the period from March 1975 to March 1976 at rates within the following ranges presently appeared to be consistent with its broad economic objectives: Mu 5 to IV2 per cent; M2, 8V2 to 10V2 per cent; M3, 10 to 12 per cent; and the bank credit proxy, 6V2 to 9V2 per cent. It was understood that these ranges, as well as the particular list of aggregates for which such ranges were specified, were subject to review and modification at subsequent meetings. It also was understood that from month to month the rates of growth of the various aggregates might well fall outside ranges contemplated for annual periods as a result of short-run factors. At this meeting the Committee took note of a staff analysis indicating that the rate of growth of the monetary aggregates would probably be increased temporarily during May and June by the tax rebates, totaling about $8 billion, which the Treasury would pay out in those months. It seemed likely that a sizable portion of the rebates would be held for a time in demand balances before being used to acquire assets, repay debt, or increase spending, and that some part would be placed directly in savings accounts. To allow for the expected temporary bulge in money holdings, the Committee agreed that relatively rapid growth in Mx and M2 over the May-June period—at annual rates within ranges of toler­ ance of 7 to 9Vi per cent and 9 to WV2 per cent, respec­ tively—would be acceptable. Such growth rates were thought likely to involve growth in reserves available to support private nonbank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 437 deposits (RPD’s) at a rate within a range of IV2 to 4 per cent, and they were expected to be consistent with a weekly average Federal funds rate in a range of 4V2 to 5 Vi per cent. In the course of the Committee’s discussion a number of mem­ bers expressed the view that upward pressures on interest rates would be particularly undesirable at present, in light of the sensitive state of financial markets and of uncertainties with respect to the timing and strength of the economic recovery that now appeared to be in process of developing. There was no sentiment for aggressive easing operations for the purpose of reducing market interest rates further. Some members urged, however, that the System should be prepared to respond promptly should the mone­ tary aggregates be unexpectedly weak. The Committee decided that open market operating decisions in the period until the next meeting should be based to a greater extent than usual on the state of financial markets, with the objective of maintaining money market conditions about like those now prevailing so long as the monetary aggregates appeared to be growing at rates within acceptable ranges of tolerance. The follow­ ing 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—after having fallen sharply for two quar­ ters—is declining much less rapidly in the current quarter. In April the pace of the decline in industrial production moderated consid­ erably further, and total employment rose. However, the unemploy­ ment rate increased again, from 8.7 to 8.9 per cent, as the civilian labor force increased considerably. Average wholesale prices of industrial commodities changed little in April, as in March; prices of farm and food products rose sharply, following several months of large decreases. The advance in average wage rates so far this year has been considerably less rapid than the increase during the second half of 1974. The foreign exchange value of the dollar has declined somewhat since mid-April, but it is still above the low of early March. U.S. imports fell sharply in the first quarter, and the foreign trade balance was in substantial surplus, in contrast to the deficits of preceding quarters. Net outflows of funds through banks were large in the first quarter, as loans to foreigners continued to increase while liabilities to foreigners declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 Federal Reserve Bulletin □ July 1975 Both Mx and M2 grew moderately in April, but M3 grew more rapidly as inflows of deposits to nonbank thrift institutions remained substantial. Business demands for short-term credit remained weak, both at banks and in the commercial paper market, while demands in the long-term market continued strong. Since mid-April short­ term market interest rates have declined somewhat. Most longerterm yields have changed little on balance, and mortgage rates have risen. Federal Reserve discount rates were reduced from 6lA to 6 per cent in mid-May. 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 maintain about the prevailing money market conditions over the period immediately ahead, provided that monetary aggregates gen­ erally appear to be growing within currently acceptable short-run ranges of tolerance. Votes for this action: Messrs. Burns, Hayes, Baughman, Bucher, Coldwell, Eastburn, Holland, MacLaury, Mayo, Mitchell, and Wallich. Votes against this action: None. Absent and not voting: Mr. Sheehan. 2. Amendment to Authorization for Domestic Open Market Operations On April 30, 1975, Committee members voted to increase from $3 billion to $4 billion the limit on changes between Committee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the authori­ zation for domestic open market operations, effective immediately, for the period ending with the close of business on May 20, 1975. Votes for this action: Messrs. Burns, Hayes, Coldwell, Eastburn, Holland, MacLaury, Mayo, Mitchell, Wallich, and Francis. Votes against this action: None. Abstention: Mr. Sheehan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 439 Absent and not voting: Messrs. Bucher and Baughman. (Mr. Francis voted as alternate for Mr. Baughman.) This action was taken on recommendation of the System Account Manager. The Manager advised that large-scale securities purchases had been necessary to carry out the Committee’s objectives in the period since the previous meeting because an extremely large volume of reserves had been absorbed by a rise in the Treasury’s balances at Reserve Banks to record levels, and that a temporary increase in the leeway for System purchases appeared desirable in light of the prospective near-term needs to supply reserves. At this meeting, the Committee decided to maintain the $4 billion limit for the period through the close of business on June 17, 1975. This action was taken on the recommendation of the Deputy Manager for Domestic Operations, who advised that an expected sharp decrease in Treasury balances at the Reserve Banks in the period ahead might necessitate an unusually large volume of se­ curities sales by the System to absorb reserves. Votes for this action: Messrs. Burns, Hayes, Baughman, Bucher, Coldwell, Eastburn, Holland, MacLaury, Mayo, Mitchell, and Wallich. Votes against this action: None. Absent and not voting: Mr. Sheehan. 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

440 Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS Section 217.4—Payment of Time Deposits Before Maturity The Board of Governors has amended its Regu­ lation Q to require member banks to notify owners of time deposits that, upon maturity, the deposits (d) Penalty for early withdrawals. Where a will become demand deposits. The amendment time deposit, or any portion thereof, is paid before also requires member banks to notify owners of maturity, a member bank may pay interest on the automatically renewable time deposits that the amount withdrawn at a rate not to exceed that deposits will be renewed at maturity unless the currently prescribed in § 217.7 for a savings de­ owner gives the bank other instructions. In addi­ posit: Provided, That the depositor shall forfeit tion, the Board encouraged all member banks to three months of interest payable at such rate. If, mail information regarding maturity of time de­ however, the amount withdrawn has remained on posits to their customers approximately 30 days deposit for three months or less, all interest shall prior to the maturity date. be forfeited. Where necessary to comply with the requirements of this paragraph, any interest al­ AMENDMENTS TO REGULATION Q ready paid to or for the account of the depositor shall be deducted from the amount requested to 1. Effective September 1, 1975, section be withdrawn. However, upon the death of any 217.3(f) of Regulation Q is amended to read as person whose name appears on the time deposit follows: passbook or certificate, a member bank may pay Section 217.3—Interest such time deposit before maturity without a re­ on Time and Savings Deposits duction or forfeiture of interest as prescribed by this paragraph.63 * * * (f) * * * On each certificate, passbook, or other document representing a time deposit, the bank Ha * * * shall have printed or stamped a conspicuous state­ ment indicating that no interest will be paid on the deposit after the maturity date or, in the case of a time deposit that is automatically renewable, RULES REGARDING a conspicuous statement indicating that the con­ DELEGATION OF AUTHORITY tract will be renewed automatically upon maturity, and indicating the terms of such renewal. The Board of Governors has amended its Rules Regarding Delegation of Authority to grant the Board’s Secretary the authority to extend the time The Board of Governors has also amended its period provided for public participation with re­ Regulation Q to permit member banks to pay a spect to proposed regulations of the Board. time deposit before maturity without penalty after the death of any person whose name appears (alone or with other persons) on the time deposit pass­ AMENDMENT TO book or Certificate of Deposit and who, therefore, RULES REGARDING possesses a legal or equitable ownership interest DELEGATION OF AUTHORITY in the account. Effective June 11, 1975, section 265.2(a) is 2. Effective June 5, 1975, section 217.4(d) of amended by adding a new subsection (13) to read Regulation Q is amended as follows: as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 441 Section 265.2— Specific Functions Dele­ (13) Under the provisions of sections 262.2(a) gated to Board Employees and to Federal and (b) of the Board’s Rules of Procedure, to Reserve Banks. extend, when appropriate, the time period pro­ (a) The Secretary of the Board (or, in his ab­ vided for public participation with respect to pro­ sence, the Acting Secretary) is authorized: posed regulations of the Board of Governors. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 provide a source of financial and managerial OF BANK HOLDING COMPANY ACT strength to its subsidiary bank(s), and that the Board will closely examine the condition of the Cross Timbers Bancshares, Inc. , Applicant in each case with this consideration in Gorman, Texas mind. In connection with this proposal, Applicant would incur a sizable acquisition debt which Order Denying Formation Applicant proposes to service over a twelve-year of Bank Holding Company period primarily through dividends from Bank. It Cross Timbers Bancshares, Inc., Gorman, is noted that in the recent past Bank has paid no Texas, has applied for the Board’s approval under dividends. In the Board’s view, the projected § 3(a)(1) of the Bank Holding Company Act (12 earnings of Applicant to service the acquisition U.S.C. 1842(a)(1)) of formation of a bank holding debt over the debt-retirement period appear to be company through acquisition of 96 per cent or somewhat optimistic based on Bank’s previous more of the voting shares of The First National earnings and, even if actually realized would not Bank of Gorman, Gorman, Texas (“Bank”). provide Applicant with the financial flexibility Notice of the application, affording opportunity necessary to meet its annual debt service require­ for interested persons to submit comments and ments while maintaining adequate capital at Bank. views, has been given in accordance with § 3(b) Furthermore, the financial requirements imposed of the Act. The time for filing comments and views upon Applicant as a result of the debt could has expired, and the Board has considered the prevent it from resolving any unforeseen problems application and all comments received in light of that may arise at Bank and thereby impair Bank’s the factors set forth in § 3(c) of the Act (12 U.S.C. ability to continue to serve the community as a 1842(c)). viable banking organization. Applicant is a nonoperating corporation organ­ On the basis of the circumstances concerning ized under the laws of Texas for the purpose of this application, the Board concludes that the becoming a bank holding company through the banking considerations involved in this proposal acquisition of Bank. Bank, with deposits of $5.2 present adverse factors bearing upon the financial million, is the smallest of five banking organi­ condition and prospects of Applicant and Bank. zations in the Eastland banking market (approxi­ Such adverse factors are not outweighed by any mated by the boundaries of Eastland county, lo­ procompetitive effects or by benefits that would cated 100 miles west of Fort Worth) and holds result in the convenience and needs of the com­ approximately 9.7 per cent of total deposits in the munity to be served. Accordingly, it is the Board’s market.1 Inasmuch as this proposal represents judgment that approval of the application would merely a reorganization of existing ownership in­ not be in the public interest and that the application terests, and since Applicant has no present banking should be denied. On the basis of the facts of record, the applica­ subsidiaries, the acquisition of Bank by Applicant tion is denied for the reasons summarized above. would not have any significantly adverse effect By order of the Board of Governors, effective upon either existing or potential competition June 25, 1975. within the relevant market. Accordingly, the Board concludes that competitive considerations Voting for this action: Chairman Burns and Gover­ are consistent with approval of the application. nors Mitchell, Bucher, Holland, Wallich, and Coldwell. The Board has indicated on previous occasions that it believes that a holding company should (Signed) Theodore E. Allison, *A11 banking data are as of December 31, 1974. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin □ July 1975 Intermountain Bankshares, shares of any one or more banks, or to control in any manner the election of a majority of the directors of Charleston, West Virginia any one or more banks, but the foregoing provisions of this provision shall not apply to shares held by a Order Determining Applicability and Effect of financial institution in a fiduciary capacity. It is further specifically provided that nothing herein contained shall State Statute in anywise affect the ownership or control of financial institutions other than banks and banking institutions Intermountain Bankshares Company, Charles­ as defined in subsection (b), section two, article one ton, West Virginia, applied for, and on August of this chapter. 1, 1974, received approval under § 3(a)(1) of the (c) Any violation of any provision of this section shall constitute a misdemeanor offense punishable by appli­ Bank Holding Company Act (12 U.S.C. cable penalties as provided in section fifteen of article 1842(a)(1)) of formation of a bank holding com­ eight of this chapter. pany through acquisition of all of the shares (less directors’ qualifying shares) of the successors by On April 16, 1975, the United States Court of merger to Kanawha Banking & Trust Company Appeals for the Fourth Circuit issued an order National Association (“Kanawha Bank”), remanding the case before it to the Board for a Charleston, and Community Bank and Trust, N.A. determination of the “applicability and effect if (“Community Bank”), Fairmont, both located in any of the new statute on Intermountain Bank­ West Virginia. The banks into which Kanawha shares’ application.” The Court’s Order stayed the Bank and Community Bank are to be merged have Board’s Order of August 1, 1974 pending recon­ no significance except as means to facilitate the sideration of the application by the Board.1 acquisition of shares of Kanawha Bank and Com­ By letters of April 23, 1975, the Board solicited munity Bank. Accordingly, the proposed acquisi­ the views of Applicant, the protestants, and the tion of shares of each of the successor organi­ Attorney General of West Virginia on the applica­ zations is treated herein as the proposed acquisition bility and effect of the amendment to the West of shares of Kanawha Bank and Community Bank, Virginia Code. The Board has received written respectively. responses from Applicant and the protestants and On August 27, 1974 the West Virginia Bankers those responses, as well as the record of the Association and nine West Virginia banks that had original application, have been considered by the objected to the application during its pendency Board. before the Board, filed a petition for review of In Whitney National Bank of Jefferson Parish the Board’s Order of August 1, 1974 in the United v. Bank of New Orleans & Trust Co., 379 U.S. States Court of Appeals for the Fourth Circuit. 411,419 (1965), the United States Supreme Court On February 24, 1975, during the pendency of indicated that the Board may not approve an ap­ that Court’s review, the Legislature of the State plication by a bank holding company if consum­ of West Virginia enacted an amendment to Section mation of the proposal contemplated by such ap­ 12, Article 8, Chapter 31A of the Code of West plication would be prohibited by a valid State law. Virginia purporting to prohibit multibank holding The new West Virginia statute seems clearly to companies in that State. On March 3, 1975, the prohibit the formation of multibank holding com­ Governor of the State of West Virginia vetoed that panies after June 5, 1975, and, if read literally, legislation. On March 7, 1975 the Legislature of would seem to prohibit the continued ownership the State of West Virginia overrode the Governor’s after that date of more than 25 per cent of the veto. The new law, which becomes effective June stock of two banks. Thus, whether or not the 5, 1975, provides: transactions proposed by Intermountain were con­ summated before June 5, 1975, the shares so (b) It shall be unlawful for any individual, partner­ acquired could not lawfully be held by Intermoun­ ship, society, association, firm, institution, trust, syndi­ cate, public or private corporation, or any other legal tain after that date. Accordingly, consistent with entity, or combination of entities acting in concert, to the rule set down in Whitney, the Board is of the directly or indirectly own, control or hold with power to vote, twenty-five per cent or more of the voting shares of each of two or more banks, or to control in any *The Board’s Order of August 1, 1974, in accordance with manner the election of a majority of the directors of section 11 of the Bank Holding Company Act (12 U.S.C. § two or more banks: Provided, however, That it shall 49) prohibited consummation of the acquisition of shares by be unlawful for any financial institution, as defined in Applicant for 30 days following the issuance of that Order. subsection (j), section two, article one of this chapter, On February 28, 1975, the Comptroller of the Currency issued or any other financial organization having similar pur­ the last of the approvals required from him with respect to poses as those specifically mentioned in said subsection these transactions, and, but for the Court’s stay, the acquisition (j) to directly or indirectly own, control or hold with could have been consummated after the lapse of 30 days from power to vote, twenty-five per cent or more of the voting that date. 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Law Department 443 view that it must, and hereby does, vacate its order be competing in the Detroit banking market.2 of August 1, 1974 and deny Intermountain’s ap­ Applicant presently controls three banking subsid­ plication.2 iaries in the relevant market and ranks as the third By order of the Board of Governors, effective largest banking organization in the market through June 4, 1975. its control of approximately 14.7 per cent of the total commercial deposits in the market.3 There Voting for this action: Vice Chairman Mitchell and are 41 banking organizations with a total of 638 Governors Bucher, Holland, Wallich, and Coldwell. Absent and not voting: Chairman Burns. offices competing in the Detroit banking market. (Signed) Theodore E. Allison, The two largest banking organizations in the mar­ [seal] Secretary of the Board. ket (each of which is a multibank holding com­ pany) control approximately 33.2 and 15.3 per cent, respectively, of the market’s commercial 2The Board notes that § 2-2-10(bb) of the West Virginia bank deposits; the five largest in the market control Code provides that “a statute is presumed to be prospective in its operation unless expressly made retrospective.” It is approximately 77 per cent of the market’s total arguable that by applying the new West Virginia statute as deposits. From the facts of record, it does not the Board has, it is giving “retrospective” effect to that law appear that consummation of this proposal would and that the Legislature did not expressly provide for retrospectivity. But for the Board’s view that the new law compels materially alter Applicant’s competitive position the disposition stated above, and its conclusion that this appli­ in the market. cation of the law is not improperly “retrospective,” the Board Although Applicant’s lead bank has offices lo­ would have reaffirmed its Order of August 1, 1974. cated in the vicinity of the city of Troy, Applicant DETROITBANK Corporation, is not represented in the city of Troy proper and its subsidiaries are precluded from establishing Detroit, Michigan branches in Troy because of Michigan’s branching Order Approving Acquisition of Bank law. Inasmuch as Bank is a proposed new bank, consummation of Applicant’s proposal would not DETROITBANK Corporation, Detroit, Michi­ have adverse effects on existing competition in the gan, a bank holding company within the meaning relevant market. On the other hand, Applicant’s of the Bank Holding Company Act, has applied de novo entry into Troy would increase the number for the Board’s approval under § 3(a)(3) of the of banking organizations with branching potential Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per in that city from two to three, and would provide cent of the voting shares of The Detroit Bankan alternative source of full banking services for Troy, Troy, Michigan (“Bank”), a proposed new the residents of the area. Furthermore, on the basis bank. of the facts of record, including the past and future Notice of the application, affording opportunity population growth of Troy and the fact that Appli­ for interested persons to submit comments and cant does not appear to be dominant in the market, views, has been given in accordance with § 3(b) the Board concludes that the proposal would not of the Act. The time for filing comments and views raise significant barriers to entry for other banking has expired, and the Board has considered the organizations not presently represented in the area. application and all comments received, including In its analysis of this application, the Board has those of First Citizens Bank, Troy, Michigan also considered the objection received from a (“Protestant”), in light of the factors set forth in protesting party. Protestant, First Citizens Bank § 3(c) of the Act (12 U.S.C. § 1842(c)). (deposits of $13.4 million), is located approxi­ Applicant, the fourth largest banking organi­ mately two and one-quarter miles southwest of zation in Michigan, controls three banks with Bank and is a subsidiary of the fifth largest bank aggregate deposits of $2.3 billion, respresenting holding company in the State. Generally speaking, approximately 8.1 per cent of total deposits in Protestant claims that consummation of the trans­ commercial banks in the State.1 Since Bank is a action would have adverse competitive effects in proposed new bank, its acquisition by Applicant would neither immediately increase Applicant’s 2The Detroit banking market is approximated by Macomb, share of deposits, nor alter its rank, in the State. Oakland, and Wayne Counties. Bank will be located in the northwest portion 3Two of Applicant’s subsidiary banks are recent de novo entrants into the Detroit banking market. In addition, Applicant of Troy, Michigan, a suburb of Detroit, and will has recently received Board approval to acquire First National Bank of Warren, Warren, Michigan (deposits of $45.2 mil­ *A11 banking data are as of June 30, 1974 and reflect holding lion). [See Board’s Order of April 11, 1975; 40 Federal company formations and acquisitions approved through Jan­ Register 17345 (1975); 61 Federal Reserve Bulletin 313 uary 31, 1975. (1975).] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin □ July 1975 that it would likely (1) increase concentration, (2) The financial and managerial resources and fu­ preclude or limit entry that could lead to decon­ ture prospects of Applicant and its subsidiaries are centration, and (3) adversely affect the competitive regarded as satisfactory. Bank has no operating posture of smaller competitors. financial history; however, it will be opened with Turning to the first contention of Protestant, the adequate capital and its prospects, as a subsidiary Board notes that four of the other five largest of Applicant, appear favorable. Accordingly, con­ banking organizations in the market have ex­ siderations relating to the banking factors are con­ panded de novo in the market within the past two sistent with approval. Considerations relating to years and, due in part to such activity, it appears the convenience and needs of the community to unlikely that any increase in market concentration be served lend weight toward approval of the would result from consummation of Applicant’s application since Bank will be capable of offering proposal. Furthermore, the small size of Troy a full complement of banking services to its cus­ relative to the entire market and the expansion and tomers. It is the Board’s judgment that consum­ growth that can be expected by the two banks with mation of the proposed acquisition would be in branching privileges presently located in Troy the public interest and that the application should should competitively limit Applicant’s future ex­ be approved. pansion and growth in Troy. On the basis of the record, the application is With respect to Protestant’s second contention, approved for the reasons summarized above. The it is noted that Troy’s current estimated population transaction shall not be made (a) before the thir­ of 59,760 is expected to reach 131,000 by 1990 tieth calendar day following the effective date of and, based upon the current population per bank­ this Order or (b) later than three months after that ing office ratio, the city will require additional date, and (c) The Detroit Bank-Troy, Troy, Mich­ banking offices to serve this expanding population. igan, shall be opened for business not later than Since there are only two banks (one of which is six months after the effective date of this Order. Protestant) in Troy capable of branching in that Each of the periods described in (b) and (c) may city, de novo entry by Applicant represents, in the be extended for good cause by the Board, or by Board’s view, a reasonable means to serve the the Federal Reserve Bank of Chicago pursuant to growing needs of that city and to provide its delegated authority. residents with an additional banking alternative. By order of the Board of Governors, effective Moreover, because of the expected growth of the June 13, 1975. area, it is unlikely that the subject proposal would Voting for this action: Vice Chairman Mitchell and either preclude or limit future entry or preempt Governors Bucher, Holland, and Coldwell. Absent and a banking site. not voting: Chairman Burns and Governor Wallich. Turning to Protestant’s final contention, the (Signed) Theodore E. Allison, projected growth within Troy for the next two [seal] Secretary of the Board. decades should be more than sufficient to sustain the growth and profitability of both Protestant and Applicant. In addition, as mentioned above, Prot­ estant is a subsidiary of the fifth largest banking Marshall & Ilsley Corporation, organization in the State and the sixth largest Milwaukee, Wisconsin banking organization in the relevant market. In Order Approving Acquisition of Bank view of its holding company affiliation, it does not appear that Protestant would be placed at a Marshall & Ilsley Corporation, Milwaukee, serious competitive disadvantage vis a vis Bank, Wisconsin, a bank holding company within the even though it will be confronted with increased meaning of the Bank Holding Company Act, has competition and may have to adjust its services applied for the Board’s approval under § 3(a)(3) to the residents of Troy accordingly. of the Act (12 U.S.C. 1842(a)(3)) to acquire all It is the Board’s judgment, having considered (less directors’ qualifying shares) of the voting the submission of Protestant and all other facts shares of M&I Bank of Mount Pleasant, Mount of record, that consummation of the proposed Pleasant, Wisconsin (“Mount Pleasant Bank”), a acquisition would not have significant adverse ef­ proposed new bank. fects on existing competition, nor foreclose the Notice of the application, affording opportunity development of future competition and that, on for interested persons to submit comments and balance, competitive considerations are consistent views, has been given in accordance with § 3(b) with approval of the application. of the Act. The time for filing comments and views Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 445 has expired, and the Board has considered the the convenience and needs of the community to application and all comments received, including be served lend some weight toward approval of those submitted on behalf of Farmers and Mer­ the application. chants Bank of Racine, Racine, Wisconsin In connection with its review of the subject (“Protestant”), in light of the factors set forth in application, the Board has considered comments § 3(c) of the Act (12 U.S.C. 1842(c)). filed by Protestant, a bank located in downtown Applicant, the second largest banking organi­ Racine. Protestant has renewed the objection pre­ zation in Wisconsin, controls 17 banks with ag­ viously submitted by it to the State Banking Com­ gregate deposits of approximately $992 million, missioner during his consideration of the charter representing 7.3. per cent of the total deposits in application for Bank. After a public hearing on commercial banks in the State.1 Since Mount the charter application on January 14, 1974 (at Pleasant Bank is a proposed new bank, its acqui­ which Protestant did not participate), the Com­ sition by Applicant would not immediately in­ missioner approved the application on February crease Applicant’s share of commercial bank de­ 28, 1974. Protestant’s position is essentially that posits in Wisconsin. there is no need for another bank in the Racine Mount Pleasant Bank is to be located in the town area and that approval of the application would of Mount Pleasant, a rapidly developing area about impair Protestant’s growth and ability to serve its 3V2 road miles north and west of Racine, and will immediate area. be competing in the Racine banking market.2 Of As indicated above, Mount Pleasant, the pro­ the 15 commercial banks operating within this posed site of Mount Pleasant Bank, is one of the market, Applicant has one subsidiary, M&I more rapidly growing areas in the Racine banking American Bank and Trust Company, Racine, market. Moreover, the population per banking Wisconsin, which holds 14.6 per cent of the mar­ office ratio in the market is 6,233 as compared ket’s total deposits and thereby ranks as the second to the average in the State of 4,807 per banking largest bank in the market. The largest bank in office. It appears, therefore, that the Racine area the market holds 30 per cent of the market’s total would be capable of supporting an additional deposits. Since Mount Pleasant Bank is a proposed banking alternative. With respect to Protestant’s new bank, its acquisition by Applicant would not second argument, the Board is unable to conclude eliminate any existing or future competition, nor from the record that the opening of Bank would would concentration of banking resources be in­ have a serious effect on Protestant’s operations. creased in any relevant area. In addition, there is While admittedly the opening of any new bank no evidence to indicate that Applicant’s proposal may have a temporary effect on banks in the is an attempt to preempt a site before there is a market, it does not appear that Applicant occupies need for a bank. Therefore, the competitive con­ such a significant position in the Racine market siderations are consistent with approval of the that its establishment of a de novo bank would application. have a serious effect on surrounding banks war­ The financial condition and managerial re­ ranting denial of the application. Accordingly, sources of Applicant and its subsidiaries are con­ having considered the comments of Protestant and sidered generally satisfactory and the future pros­ on the basis of the record, it is the Board’s judg­ pects for each appear favorable. Mount Pleasant ment that the proposed acquisition would be in Bank, as a proposed new bank, has no financial the public interest and that the application should or operating history; however, its future prospects be approved. as a subsidiary of Applicant appear favorable. On the basis of the record, the application is Thus, the considerations relating to the banking approved for the reasons summarized above. The factors are consistent with approval. Mount Pleas­ transaction shall not be made (a) before the thir­ ant Bank would serve as an additional source of tieth calendar day following the effective date of full banking services to the residents of that com­ this Order or (b) later than three months after that munity and environs. Considerations relating to date, and (c) M&I Bank of Mount Pleasant, Mount Pleasant, Wisconsin, shall be opened for business 1 All banking data are as of December 31, 1974, and reflect not later than six months after the effective date all holding company acquisitions and formations approved by of this Order. Each of the periods described in the Board through May 31, 1975. (b) and (c) may be extended for good cause by the Board, or by the Federal Reserve Bank of 2The relevant geographic market is approximated by the Racine RMA. Chicago pursuant to delegated authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 Federal Reserve Bulletin □ July 1975 By order of the Board of Governors, effective banking resources by increasing Applicant’s al­ June 13, 1975. ready significant position in the market and by increasing the percentage of deposits held by the Voting for this action: Vice Chairman Mitchell and five largest organizations in the market to about Governors Bucher, Holland, and Coldwell. Absent and not voting: Chairman Burns and Governor Wallich. 69.0 per cent of the total. (Signed) Theodore E. Allison, In addition to its effects on the concentration [seal] Secretary of the Board. of banking resources, it appears that the proposal would also have adverse effects on existing and future competition within the Denver market. As United Banks of Colorado, Inc., noted above, Applicant is already represented in Denver, Colorado the relevant market with six subsidiary banks. The Order Denying Acquisition of Bank record indicates clearly that there is substantial competition between certain of Applicant’s sub­ United Banks of Colorado, Inc., Denver, Colo­ sidiaries and Bank which would be eliminated by rado, a bank holding company within the meaning this proposal; Applicant’s subsidiaries derive sig­ of the Bank Holding Company Act, has applied nificant amounts of loans and deposits from the for the Board’s approval under § 3(a)(3) of the area served by Bank. Furthermore, the proposal Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent would foreclose the development of future com­ or more of the voting shares of The First National petition by removing Bank (the fourth largest Bank in Golden, Golden, Colorado (“Bank”). independent competitor in the market) as an inde­ Notice of the application, affording opportunity pendent competitor within the Denver market. for interested persons to submit comments and Accordingly, the Board is of the view that con­ views, has been given in accordance with § 3(b) summation of the proposal would have adverse of the Act. The time for filing comments and views effects on both existing and future competition. has expired, and the Board has considered the On the basis of the foregoing and other facts application and all comments received in light of of record, the Board concludes that competitive the factors set forth in § 3(c) of the Act (12 U.S.C. considerations relating to this application weigh 1842(c)). sufficiently against approval so that it should not Applicant controls 19 banks with aggregate de­ be approved unless the anticompetitive effects are posits of about $924.6 million, representing ap­ outweighed by other positive considerations re­ proximately 13.8 per cent of the total commercial flected in the record such as the financial and bank deposits in Colorado, and is the second managerial resources and future prospects of Ap­ largest banking organization in the State.1 The plicant and Bank or the convenience and needs acquisition of Bank (deposits of $48.3 million) of the communities to be served. would increase Applicant’s control of commercial In regard to considerations relating to banking bank deposits in Colorado by 0.7 per cent, and factors, the financial and managerial resources of Applicant would become Colorado’s largest bank­ Applicant, its subsidiaries, and Bank are generally ing organization. satisfactory, and their prospects appear to be Bank, which is located in Golden, approxi­ favorable. While such considerations are regarded mately 15 miles from downtown Denver, com­ as being consistent with approval of the applica­ petes in the Denver banking market (approximated tion, they do not, in the Board’s view, lend mean­ by Denver, Adams, Arapahoe and Jefferson ingful weight for such approval. Similarly, con­ Counties and the Broomfield area of Boulder siderations relating to convenience and needs are County) and controls approximately 1.3 per cent deemed to be consistent with approval of the of total market deposits. Applicant is also repre­ application; however, the improvements in Bank’s sented in the Denver market and ranks therein as services that Applicant proposes to initiate would the second largest banking organization with six not noticeably benefit the convenience and needs subsidiaries in the market controlling approxi­ of the communities to be served. Accordingly, the mately 17 per cent of the total market deposits. Board concludes that the above factors are not Consummation of the proposed transaction would sufficient to outweigh the adverse competitive ef­ have some adverse effects on the concentration of fects that the Board finds would result from con­ summation of the proposal. AA11 banking data are as of June 30, 1974, and reflect bank holding company formations and acquisitions approved by the On the basis of all the facts in the record, and Board through May 31, 1975. in light of the factors set forth in § 3(c) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 447 Act, it is the Board’s judgment that approval of Notice of the application, affording opportunity the proposal would not be in the public interest. for interested persons to submit comments and Accordingly, the application is denied for the views on the public interest factors, has been duly reasons summarized above. published (40 Federal Register 14378). The time By order of the Board of Governors, effective for filing comments and views has expired, and June 13, 1975. the Board has considered all comments received in the light of the public interest factors set forth Voting for this action: Vice Chairman Mitchell and in section 4(c)(8) of the Act (12 U.S.C. Governors Bucher, Holland, and Coldwell. Absent and not voting: Chairman Burns and Governor Wallich. 1843(c)(8)). (Signed) Theodore E. Allison, Applicant, a multibank holding company, is the [seal] Secretary of the Board. fourth largest banking organization in New York State, and the fifth largest nationally. Applicant controls Chemical Bank, New York, New York (“Bank”), and six other commercial banks which, ORDERS UNDER SECTION 4 collectively, hold deposits of $13.1 billion, repre­ OF BANK HOLDING COMPANY ACT senting approximately 9.7 per cent of the total deposits in commercial banks in New York State.1 Chemical New York Corporation, Applicant also controls nonbanking subsidiaries New York, New York which engage in equipment financing, construction lending, permanent financing of income producing Order Approving Acquisition properties, mortgage banking and accounts re­ of SBMT Sunamerica Corporation ceivable financing and factoring. Chemical New York Corporation, New York, Sunamerica, with total gross receivables of New York, a bank holding company within the $68.3 million, is a holding company for three meaning of the Bank Holding Company Act, has wholly-owned subsidiaries: The Sun Finance and applied for the Board’s approval, under section Loan Company, Sun States Life Insurance Com­ 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s pany and Great Lakes Insurance Company. The Regulation Y, to acquire, through an exchange of Sun Finance and Loan Company operates con­ shares, all of the voting shares of SBMT Suna­ sumer finance subsidiaries in eleven States, four merica Corporation, Cleveland, Ohio (“Suna­ industrial banks in Colorado, and two insurance merica”), a company that engages in the activities agencies. The Sun Finance and Loan Company of a consumer finance company by making, ac­ ranks as the 90th largest finance company (57th quiring or servicing loans and other extensions of largest noncaptive finance company) in the United credit such as would be made by a finance com­ States. Sun States Life Insurance Company en­ pany; operating industrial banks in the manner gages in the reinsurance of credit related life authorized by the State of Colorado; providing insurance originating from direct loan and sales time on its computer to firms which avail them­ finance transactions by Sun Finance and Loan selves of Sunamerica’s computer during slack pe­ Company while Great Lakes Insurance Company riods; acting as an insurance agent or broker in engages in the reinsurance of credit related acci­ offices of Sunamerica and its subsidiaries with dent and health insurance originating from the respect to insurance directly related to an extension same sources. of credit by such subsidiaries or otherwise sold With respect to Sunamerica’s lending activities, as a matter of convenience to the purchaser, so approximately 66 per cent of its outstanding re­ long as the premium income from such conven­ ceivables consist of personal loans and an addi­ ience sales does not constitute a significant portion tional 33 per cent consist of receivables arising of the aggregate insurance premium income of the from the purchase from dealers of installment holding company from insurance sold pursuant to notes from the sale of goods and services. The § 225.4(a)(9)(ii) of Regulation Y; and acting as geographic market for personal loans is considered underwriter for credit life insurance and credit to be local. Although it is possible to engage in accident and health insurance which is directly sales finance over an unlimited geographic area, related to extensions of credit by the bank holding Sunamerica has only a few sales finance clients system. Such activities have been determined by banking data for Chemical New York Corporation are as the Board to be closely related to banking (12 CFR of June 30, 1974; all financial data for Sunamerica Corporation 225.4(a)(1), (2), (8), (9) and (10)). are as of December 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Federal Reserve Bulletin □ July 1975 located outside the various local market areas of into the Board’s decision is that Sunamerica will its personal loan offices. Sunamerica operates its maintain its funding separate and independent of 105 offices in local markets in California, Colo­ Applicant. Likewise Applicant will not guarantee rado, Florida, Georgia, Kentucky, -Louisiana, or issue any debt to be utilized in Sunamerica’s North Carolina, Ohio, South Carolina, Tennessee operation. Thus, it will not be necessary in the and West Virginia. Applicant’s seven subsidiary immediate future for Applicant to enter the debt banks extend personal loans solely within several market to support Sunamerica’s activities. Fur­ major markets in New York State. In addition, thermore, Applicant intends to defer indefinitely Bank does engage in sales finance, but competes its original plans for de novo expansion of Suna­ for such business principally in the New York City merica. It appears, therefore, that consummation metropolitan area. Thus, since there is no mean­ of the proposal would not require Applicant to ingful geographic overlap between the services divert any significant amount of its financial or offered by both Applicant and Sunamerica, con­ managerial resources to assure the successful summation of the proposed transaction would not operation of Sunamerica. On the other hand, the adversely affect existing competition in any rele­ acquisition of Sunamerica should ultimately result vant market. in benefits to the overall earnings of Applicant. With respect to the question of whether con­ In order for the Board to approve an acquisition summation of the proposal would eliminate any under section 4(c)(8) of the Bank Holding Com­ significant competition in the future, Applicant pany Act it must determine that approval can possesses the resources and expertise to penetrate reasonably be expected to produce benefits to the the markets that are presently served by Suna­ public such as greater convenience, increased merica through de novo entry or through the ac­ competition, or gains in efficiency that outweigh quisition of smaller finance companies. The loss possible adverse effects, such as undue concentra­ of potential competition upon consummation of tion of resources, decreased or unfair competition, this proposal is not viewed as serious. The major conflicts of interests or unsound banking practices. markets in which Sunamerica operates contain The normal public benefits which can be ex­ numerous competitors and Sunamerica’s share of pected to accrue from the entry of bank holding the individual markets is small. Sunamerica has companies into the finance company business less than 3 per cent of all personal loans in nearly would be expected to accrue in this case. In all the relevant markets and no more than 2.2 per addition, the added managerial strength and im­ cent of the sales financings in any market. In no proved efficiencies resulting from the acquisition market does Sunamerica appear to have a domi­ of Sunamerica by Applicant will allow Sunamerica nant position in either product line. The Board to increase its receivables and expand its influence therefore concludes that consummation of the pro­ within its already established markets. Further­ posal would have only a very slight adverse effect more, Applicant is committed to lower interest with respect to the elimination of potential com­ rates to all borrowers without being more restric­ petition. tive in its credit standards. Due to the nature of Sunamerica’s insurance As discussed hereinafter, Applicant will lower activities, which are presently limited to exten­ credit insurance premium rates in the States where sions of credit made by Sunamerica and its sub­ policies are reinsured by a Sunamerica subsidiary. sidiaries and insurance sold to customers of Suna­ Applicant has proposed a rate reduction, without merica and its subsidiaries as a matter of conven­ a reduction of policy benefits, of 5 per cent for ience, it does not appear that Applicant’s acquisi­ credit accident and health insurance and a range tion of these insurance activities would have any of rate reductions of from 2 per cent to 15 per significant effect on existing or potential competi­ cent for credit life insurance. The Board has de­ tion. termined that these benefits to the public outweigh The subject application contains a number of the slightly adverse potential competitive effects factors which, in the Board’s view, make the of the proposal and that approval of the acquisition financial considerations involved in the proposal is warranted. consistent with approval. Foremost among these On the basis of all the facts of record, including is the fact that the proposal involves a stock-for- the Board’s view that Applicant’s commitments stock acquisition and thus does not constitute a and assurance that the acqusition will neither result utilization of funds for expansion, which funds in any significant increased demand upon Appli­ could be used elsewhere to strengthen Applicant’s cant’s financial or managerial resources nor cause organization. Another factor which has entered any immediate alteration or expansion of Suna- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 449 merica’s present operations, the Board has deter­ iaries in New York and California.2 Applicant also mined, in accordance with the provisions of § has an agency each in New York, Los Angeles, 4(c)(8), the consummation of this proposal can San Francisco, as well as a branch each in Port­ reasonably be expected to produce benefits to the land, Oregon, and Seattle, Washington.3 public that outweigh possible adverse effects. Ac­ TBI would engage de novo in a wide variety cordingly, the application is hereby approved. The of international and foreign banking activities Board’s approval determination is also subject to usual in financing international commerce, includ­ the conditions set forth in § 225.4(c) of Regulation ing providing letters of credit and acceptance fa­ Y and to the Board’s authority to require such cilities; the negotiation and collection of checks, modification or termination of the activities of a drafts and other means of payment payable abroad; holding company or any of its subsidiaries as the foreign exchange services; and working capital Board finds necessary to assure compliance with loans to domestic importers and exporters. As part the provisions and purposes of the Act and the of its business, TBI would also receive so-called Board’s regulations and orders issued thereunder, due-to-customer accounts. From information sub­ or to prevent evasion thereof. mitted to the Board, it appears that TBI’s due-to- The transaction shall be made not later than customer accounts are similar to credit balances three months after the effective date of this Order, received by New York Investment Companies4 and unless such period is extended for good cause by would serve many of the same functions as de­ the Board or by the Federal Reserve Bank of New mand deposits in commercial banks and Edge Act York, pursuant to delegated authority. Corporations.5 By order of the Board of Governors, effective In general, TBI would compete with other fi­ June 27, 1975. nancial institutions in Houston, including the in­ ternational banking departments of the larger Voting for this action: Chairman Burns and Gover­ Texas banks and Edge Act Corporation subsidi­ nors Mitchell, Holland, Wallich, and Coldwell. Absent and not voting: Governor Bucher. aries of other banks. Applicant cannot acquire a (Signed) Theodore E. Allison, majority interest in an Edge Act Corporation due to restrictions on foreign ownership in the provi­ [seal] Secretary of the Board. sions of the Edge Act,6 and cannot open a banking branch or agency in Houston because of specific THE BANK OF TOKYO, LTD., prohibitions in the Texas Constitution.7 TOKYO, JAPAN Section 4(c)(9) of the Act provides that the prohibitions of Section 4 shall not apply to the Order Denying Acquisition of Tokyo Bancorp investments or activities of foreign bank holding International (Houston), Inc. companies that conduct the greater part of their business outside of the United States, if the Board The Bank of Tokyo, Ltd., (“Applicant”), by regulation or order determines that, under the Tokyo, Japan, a foreign bank holding company circumstances and subject to the conditions set within the meaning of § 225.4(g)(l)(iii) of the forth in the regulation or order, the exemption Board’s Regulation Y, has applied for the Board’s consent, under section 4(c)(9) of the Bank Holding Company Act and § 225.4(g)(2)(iv) of the Board’s 2Bank of Tokyo Trust Co., New York, New York, with Regulation Y, to acquire all of the voting shares deposits of approximately $1.5 billion is the thirteenth largest commercial bank in the State of New York. Bank of Tokyo of Tokyo Bancorp International (Houston), Inc., of California, San Francisco, California, with deposits of (“TBI”), Houston, Texas. approximately $914 million is the eighth largest commercial bank in California. The preceding data are as of December Applicant is a Japanese commercial bank with 31, 1974. total assets of approximately $19.9 billion and 3 Applicant also has a 4.9 per cent share interest in Chicagooperates branches or agencies in 19 countries.1 Tokyo Bank, Chicago, Illinois, a State-chartered bank, for which prior consent of the Board was not required under § Applicant, which became a bank holding company 3(a)(3) of the Act. Applicant also has a 5 per cent interest as a result of the enactment of the Bank Holding in Nomura Securities International, Inc., New York, New Company Act of 1956, is a grandfathered multi- York, acquired pursuant to section 4(c)(6) of the Act. 4 Companies organized under Article XII of the New York State bank holding company with banking subsid­ State Banking Law. 5 Corporations organized under Section 25(a) of the Federal Reserve Act which are engaged in international or foreign banking or other international or foreign financial operations. 1 All banking and financial data for Applicant are as of March 6 12 U.S.C. 619. 31, 1974. 7Article 16, § 16 of the State of Texas Constitution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 Federal Reserve Bulletin □ July 1975 would not be substantially at variance with the principal banking operations unless affirmatively purposes of the Act and would be in the public permitted by the laws of the receiving State. This interest. In § 225.4(g)(2)(iv) of Regulation Y, the provision was adopted as part of the original Bank Board has determined that a foreign bank holding Holding Company Act in order to halt the further company may, with the Board’s consent, own or multi-State expansion of certain holding compa­ control voting shares of any company principally nies then in existence. The only general exception engaged in the United States in financing or facili­ to this prohibition and federal restrictions on tating transactions in international or foreign com­ multi-State branch banking9 is permission for merce. United States banking organizations to conduct a In the Board’s judgment, Congress intended that limited multi-State international banking business section 4(c)(9) of the Act be primarily used to through ownership of Edge or Agreement Cor­ prevent the nonbanking prohibitions of section 4 porations,10 both of which are specifically regu­ of the Act from unnecessarily interfering with the lated as banking institutions by the Board under essentially foreign activities and shareholdings of Federal law. While the Board believes that foreign foreign bank holding companies. The subject pro­ banks such as Applicant should be permitted to posal does not involve a question of the extraterri­ own Edge Act Corporations and has so recom­ torial impact of the Act on the operations or mended to Congress, the Board does not believe investments of Applicant, but rather involves the that it was within the intent of Congress in enacting question of whether Applicant may, with the 4(c)(9) of the Act for the Board to use its broad Board’s consent, organize a domestic corporation discretionary authority under that section to au­ to engage in international and foreign banking and thorize hybrid “nonbank” vehicles designed to financing activities under section 4(c)(9) of the permit the conduct of an international banking Act. With respect to such investments in domestic business on a multi-State basis outside of the corporations under section 4(c)(9) of the Act, the explicit legal framework set up by the Congress Board is particularly concerned that such invest­ in Sections 25 and 25(a) of the Federal Reserve ments be consistent with the purposes of the Act Act. Consequently, the Board finds that approval and not give foreign banking institutions competi­ would not be consistent with the purposes of the tive advantages in the United States over domestic Bank Holding Company Act. banking institutions.8 While approval of this application would result From the scope of banking and financing activi­ in the addition of another competitor in interna­ ties applied for in this application and the fact that tional banking in Houston, it appears that the TBI would accept credit balances which could international banking needs of the Houston area serve many of the same functions as deposits in are being adequately served at the present time. international financing, it appears to the Board that Moreover, approval could lead to a competitive TBI would essentially function in Houston as an imbalance between TBI and its primary Edge Act incorporated international banking agency of Ap­ Corporation competitors in Houston, since the plicant. While TBI in the Board’s judgment is not activities proposed in the application are in some necessarily a “bank” within the meaning of sec­ respects greater than those permitted Edge Act tion 2(c) of the Act, TBI would nevertheless serve Corporations. While it may be feasible to define as another organizational link in Applicant’s chain conditions that would limit the activities of TBI of interstate commercial banking operations. to virtually the equivalent of those permitted Edge Section 3(d) of the Act generally prohibits bank Act Corporations, no exact equivalent is possible, holding companies from acquiring an interest in as TBI would have certain inherent operating ad­ a banking organization outside of their State of vantages—for example, it would be free from reserve requirements. In this regard, the Board 8See the Board’s Order of January 9, 1974 (1974 Bulletin believes that the effects of creating such a com­ 139) denying Lloyds Bank Limited’s proposed retention of its petitive imbalance between Edge Act Corporations investments in Drake America Corporation and Drake America Corporation (P.R.); the Board’s Order of December 6, 1973 (1974 Bulletin 58) denying The Royal Trust Company’s application to permanently acquire Information Systems De­ 9See 12 U.S.C. 36 for national banks, the restrictions of sign, Inc.; the Board’s Order of September 28, 1972 (1972 which are applied to State member banks under 12 U.S.C. Bulletin 940) denying Banco di Roma’s proposed retention 331. of its investment in Europartners Securities Corporation; and 10An “Agreement Corporation” is an international or the Board’s Order of February 7, 1972 (1972 Bulletin 312) foreign banking corporation operating pursuant to an agreement denying Banque Nationale de Paris’ proposed retention of its entered into with the Board under Section 25 of the Federal investment in Indumat Equipment Corporation. Reserve Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 451 and foreign-owned vehicles such as TBI are not Dissenting Statement of in the public interest. Governor Wallich Applicant has pointed to the Board’s approval under section 4(c)(9) of the Act of Banque Na- I dissent from the Board’s denial of the subject tionale de Paris’ retention of French American application. In my judgment, Applicant’s proposal Banking Corporation (“FABC”), a New York would not be substantially at variance with the Investment Company,11 and Lloyds Bank Lim­ purposes of the Bank Holding Company Act, and ited’s retention of Balfour Williamson, Inc.12 as, would be in the public interest. The establishment in its judgment, precedents for the subject pro­ of TBI in Houston would clearly be procompetiposal. In the Board’s judgment, the case of FABC tive, as it would bring the international banking and currently operating New York Investment and financial services and expertise of another Companies is distinguishable from the subject large multinational bank to that rapidly growing proposal in many respects. In particular, New area. This not only would promote an increased York Investment Companies are organized pursu­ flow of international business into the Houston ant to a specific provision of the New York State area, but also would, in this case, especially en­ Banking Law, and their international and foreign courage and facilitate additional trade and invest­ banking and financing activities, including the ment between Japan and the United States. receipt of credit balance accounts, are under the In general, I believe the United States and its supervision of the New York State banking au­ trading partners would benefit if each country were thorities.13 TBI is not being organized under a to make every effort to improve the access of specific statutory provision created by the Texas foreign banks to its local and international banking legislature to provide for the conduct of interna­ markets. In this regard, I share my colleagues’ tional and foreign banking and financing activities, hope that legislative action will be taken to permit nor is it to be supervised by the Texas banking foreign bank ownership of Edge Act Corporations. authorities. Rather, TBI is being organized as any While I recognize my colleagues’ concerns, in the other Texas nonbanking corporation under a gen­ absence of such legislation, I would use the eral corporate charter. Moreover, TBI would not Board’s discretionary authority in section 4(c)(9) be regulated and supervised on a comparable basis of the Act to overcome existing impediments to with competing Edge Act Corporations and the foreign bank entry that are illsuited for the present international banking departments of Texas banks. international environment. Lloyds’ retention of Balfour Williamson, Inc. For the foregoing reasons, I conclude that the is also distinguishable from the subject case be­ subject application should be approved. cause from the record of that application, it ap­ ORDERS UNDER SECTIONS 3 AND 4 pears that Balfour Williamson was engaged in a much more limited international financing business OF BANK HOLDING COMPANY ACT and did not maintain general credit balance ac­ counts of the type proposed in this application. Farmers State Corporation, Based on the foregoing and other considerations Mountain Lake, Minnesota reflected in the record, the Board is unable to Order Approving Formation of Bank Holding determine that the subject application would not Company and Acquisition of Farmers State Insur­ be substantially at variance with the purposes of ance Agency the Act and would be in the public interest. The application is therefore denied. By order of the Board of Governors, effective Farmers State Corporation, Mountain Lake, May 30, 1975. Minnesota, has applied for the Board’s approval Voting for this action: Chairman Burns and Gover­ under § 3(a)(1) of the Bank Holding Company Act nors Mitchell, Holland, and Coldwell. Voting against (12 U.S.C. 1842(a)(1)) of formation of a bank this action: Governor Wallich. Absent and not voting: Governors Sheehan and Bucher. holding company through acquisition of 93.4 per cent of the voting shares of Farmers State Bank (Signed) Griffith L. Garwood, of Mountain Lake, Mountain Lake, Minnesota [seal] Assistant Secretary of the Board. (“Bank”). 11 Board Order of February 7, 1972 (1972 Bulletin 312). Applicant has also applied for the Board’s ap­ 12Board Order of January 9, 1974 (1974 Bulletin 139). 13See Article XII of the New York State Banking Law, Sec. proval pursuant to § 4(c)(8) of the Act (12 U.S.C. 507, et seq. 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin □ July 1975 ulation Y, to acquire the assets of Willis D. could have placed an undue strain on the financial Schroeder Insurance Agency, d/b/a Farmers State condition of Bank. However, in view of the facts Insurance Agency, Mountain Lake, Minnesota as now presented, the financial condition, mana­ (“Agency”), and thereby to engage in the activi­ gerial resources and future prospects of both Ap­ ties of a general insurance agency in Mountain plicant and Bank are regarded as generally satis­ Lake, Minnesota (population of less than 5,000 factory and consistent with approval herein. Ap­ persons). The operation by a bank holding com­ plicant’s present proposal evidences a significantly pany of a general insurance agency in a community reduced annual dividend rate to be paid by Bank with a population not exceeding 5,000 persons is for debt servicing purposes as well as an improved an activity that the Board has previously deter­ equity capital position for Bank. It appears that mined to be closely related to banking (12 CFR Applicant will have the financial flexibility to ser­ 225.4(a)(9)(iii)(a)). vice its acquisition debt without placing an undue Notice of the applications, affording opportunity strain on the financial condition of Bank, as well for interested persons to submit comments and as to assist Bank if any unexpected problems views, has been given in accordance with §§ 3 should arise. Therefore, considerations relating to and 4 of the Act (40 Federal Register 19542). banking factors are consistent with approval of the The time for filing comments and views has ex­ application. Applicant proposes to raise the inter­ pired, and the Board has considered the applica­ est rates on savings and time deposits, expand tions and all comments and views received in light consumer installment and mortgage loans, and of the factors set forth in § 3(c) of the Act (12 lengthen banking hours. While these improve­ U.S.C. 1842(c)), and the considerations specified ments in Bank’s services could likely be imple­ in § 4(c)(8) of the Act. mented whether or not the application to become Applicant, a nonoperating corporation with no a bank holding company is approved, consid­ subsidiaries, was organized for the purpose of erations relating to the convenience and needs of becoming a bank holding company through acqui­ the community to be served are consistent with sition of Bank and operating a general insurance approval of the application to acquire Bank. agency. Bank ($8.1 million in deposits) is the fifth In connection with the application to become largest of eight banks operating in the relevant a bank holding company, Applicant also proposes banking market1 and controls 10.8 per cent of the to acquire the assets of Agency, which is presently total deposits held by commercial banks in the owned by principals of Applicant, and thereby market.2 Upon acquisition of Bank, Applicant engage in the activities of a general insurance would control less than 0.1 per cent of the total agency, pursuant to § 225.4(a)(9)(iii)(a) of Regu­ commercial bank deposits in the State. Inasmuch lation Y. Approval of this application would insure as the proposed transaction involves a transfer of the residents of Mountain Lake a continued con­ control of Bank from individuals to a corporation venient source of insurance services, which result controlled by the same individuals, and since Ap­ the Board regards as being in the public interest. plicant has no existing banking subsidiary, con­ Furthermore, there is no evidence in the record summation of the proposal would not eliminate indicating that consummation of the proposal any existing or potential competition, nor have any would result in any undue concentration of re­ adverse effects on the other banks in the relevant sources, unfair competition, conflicts of interests, market. Therefore, competitive considerations are unsound banking practices, or other adverse ef­ consistent with approval of the application. fects on the public interest. By Order dated October 4, 1974, the Board Based on the foregoing and other considerations denied similar applications by Applicant to be­ reflected in the record, the Board has determined, come a bank holding company through acquisition in accordance with the provisions of § 4(c)(8), that of Bank and to engage in general insurance agency consummation of this proposal can reasonably be activities (60 Federal Reserve Bulletin 787). In expected to produce benefits to the public that that Order, the basis of the Board’s denial related outweigh possible adverse effects and the applica­ primarily to the financial requirements of Appli­ tion to acquire Agency should be approved. cant’s proposal, which, the Board concluded, Accordingly, the applications are approved for the reasons summarized above. The acquisition of Bank shall not be made before the thirtieth calen­ 1 The relevant banking market is approximated by the eastern dar day following the effective date of this Order. half of Cottonwood County and the western half of Watonwan County. The acquisition of Bank and Agency shall be made 2Banking data are as of June 30, 1974. not later than three months after the effective date Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 453 of this Order, unless such period is extended for company within the meaning of the Bank Holding good cause by the Board or by the Federal Reserve Company Act (“Act”), has applied for the Bank of Minneapolis pursuant to delegated au­ Board’s approval under § 3(a)(5) of the Act (12 thority. The determination as to Applicant’s insur­ U.S.C. 1842(a)(5)) to acquire all of the voting ance activities is subject to the conditions set forth shares of ComBanks Corporation, Winter Park, in § 225.4(c) of Regulation Y and to the Board’s Florida (“ComBanks”), under the charter and title authority to require reports by, and make exami­ of American. The factors that are considered in nations of, holding companies and their subsidi­ acting on the application are set forth in § 3(c) aries and to require such modification or termina­ of the Act (12 U.S.C. 1842(c)). tion of the activities of a bank holding company American has also applied, pursuant to § 4(c)(8) or any of its subsidiaries as the Board finds neces­ of the Act (12 U.S.C. 1843(c)(8)) and § sary to assure compliance with the provisions and 225.4(b)(2) of the Board’s Regulation Y, for per­ purposes of the Act and the Board’s regulations mission to acquire, in conjunction with the above and orders issued thereunder, or to prevent evasion merger, ComBanks Mortgage Company, Winter thereof. Park, Florida (“Mortgage”), a company that en­ By order of the Board of Governors, effective gages in making, acquiring or servicing for its own June 18, 1975. account or for the account of others, loans or other Voting for this action: Governors Bucher, Holland, extensions of credit normally made in the opera­ and Coldwell. Voting against this action: Vice Chair­ tion of a mortgage company, such as construction, man Mitchell. Absent and not voting: Chairman Burns and Governor Wallich. development, mortgage and other types of real (Signed) Theodore E. Allison, estate loans. Applicant has also applied, pursuant [seal] Secretary of the Board. to § 4(c)(8) of the Act (12 U.S.C. 1842(c)(8)) and § 225.4(b)(2) of the Board’s Regulation Y, Dissenting Statement of for permission to acquire the assets of ComBanks Vice Chairman Mitchell Data Processing Center, Winter Park, Florida I would deny the applications of Farmers State (“Data”), a division of ComBanks, and thereby Corporation to become a bank holding company perform data processing services for the operations through acquisition of Farmers State B^nk of of the holding company and its subsidiaries, and Mountain Lake (“Bank”) and to acquire Farmers storing and processing other banking, financial and State Insurance Agency. In my view, the proposed related economic data, such as performing payroll, acquisition debt to be assumed by Applicant in accounts receivable or payable billing services, or connection with the acquisition of Bank is high other similar financial services. The activities of in relation to its equity. The high level of dividend Mortgage and Data have been determined by the pay-out from Bank necessary for Applicant to Board in §§ 225.4(a)(1) and (8) of Regulation Y, service such debt could inhibit growth in Bank’s respectively, as being permissible activities for capital at a rate compatible with its projected asset bank holding companies, subject to Board ap­ growth and could place an undue strain on the provals of individual proposals in accordance with financial condition of Bank, as well as impede the procedures of § 225.4(b) of Regulation Y. Bank’s ability to provide adequate banking ser­ Notice of the applications, affording opportunity vices to the community. for interested persons to submit comments and In sum, I do not believe that Applicant’s finan­ views, has been given in accordance with §§ 3 cial resources have improved significantly since and 4 of the Act (40 Federal Register 17344). last October 1974 when the Board denied similar The time for filing comments and views has ex­ applications by Applicant. Therefore, I vote again pired, and the Board has considered the application to deny the applications. and all comments received in light of the factors American Bancshares, Incorporated, set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) North Miami, Florida and the public interest factors set forth in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). Order Approving Merger American, the fifteenth largest banking organi­ of Bank Holding Companies zation in Florida, controls 10 banks with aggregate American Bancshares, Incorporated, North deposits of approximately $308 million, repre­ Miami, Florida (“American”), a bank holding senting 1.3 per cent of the total deposits in com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin □ July 1975 mercial banks in the State.1 ComBanks is the 23rd to expand into the Orlando market in the foreseea­ largest banking organization in the State and con­ ble future. Accordingly, the Board concludes that trols seven banks with aggregate deposits of ap­ consummation of the proposal would not have any proximately $163 million, representing 0.7 per significant adverse effects on existing or potential cent of the total deposits in commercial banks in competition in any relevant area and that the the State. Upon consummation of the proposed competitive considerations are consistent with ap­ merger, American would control 2 per cent of the proval of the application to merge the two holding total State deposits and would become the four­ companies. teenth largest banking organization in Florida. The financial condition of American, ComBanks American’s subsidiary banks are located in and their respective subsidiaries is considered to seven different banking markets as follows: four be generally satisfactory. Consummation of the in the greater Miami market and one in each of proposed merger should result in greater investor the Gainesville, North Pinellas County, South appeal for the consolidated banking organization Pinellas County, Tampa, North Broward County and thereby provide American with easier access and Key Largo markets.2 ComBanks’ seven sub­ to the equity capital markets. Furthermore, con­ sidiary banks are all located in the Orlando bank­ summation of the proposal should enable Ameri­ ing market,3 where ComBanks controls 11.8 per can to strengthen ComBanks’ present managerial cent of that market’s total deposits and, thereby, resources. The future prospects for the resulting ranks as the second largest banking organization organization and its subsidiaries appear favorable. operating therein. Neither American nor Com­ Therefore, the banking factors lend weight toward Banks has any subsidiary banks located within the approval of the application. Although American same market; and neither has any subsidiary banks proposes no major changes in the services pres­ located in adjacent markets. Thus, it appears that ently offered as a result of this transaction, the no meaningful competition presently exists be­ considerations relating to the convenience and tween any of the banking subsidiaries of American needs of the residents of the communities to be and those of ComBanks, nor is any such competi­ served are consistent with approval of the applica­ tion likely to develop in view of the market sepa­ tion. It is the Board’s judgment that consummation ration and Florida’s branching laws. of this transaction would be in the public interest Although consummation of the proposed merger and that the application to merge the two holding would foreclose the possibility that either Ameri­ companies should be approved. can or ComBanks would enter the banking markets In conjunction with the proposed merger, of the other, the Board finds that there is little American proposes to acquire Mortgage, a com­ likelihood of significant potential competition de­ pany that engages in the activities of originating, veloping between the two banking organizations selling and servicing real estate mortgage loans in the absence of the subject proposal. ComBanks in the Orlando market. As of December 31, 1974, has shown no inclination to expand beyond the Mortgage had a mortgage servicing portfolio of Orlando market and does not now appear to approximately $2.2 million and had originated possess the managerial resources to do so. Fur­ total loans of slightly more than $4.2 million since thermore, it does not appear from the facts of its formation in January of 1974. American’s non­ record that American has the necessary resources banking subsidiary, American Bancshares Mort­ gage Company, Inc., North Miami, Florida (“ABMC”) engages in these same activities in *A11 banking data are as of December 31, 1974, and reflect Broward and Dade Counties, Florida. However, all holding company formations and acquisitions approved by neither Mortgage nor ABMC derive any signifi­ the Board through May 31, 1975. cant business from the market areas in which the 2The greater Miami market is approximated by all of Dade County and the Hollywood area of Broward County; the other operates. Therefore, the Board concludes Gainesville market is approximated by Alachua County; the that the proposed acquisition would not have ad­ North Pinellas County market is approximated by the northern verse effects on existing competition. Further­ half of Pinellas County; the South Pinellas County market is approximated by the southern half of Pinellas County; the more, it does not appear that consummation of Tampa market is approximated by Hillsborough County and the proposal would foreclose the development of the town of Land O’Lakes in Pasco County; the North Broward market is approximated by the northern two-thirds of Broward significant potential competition within the Or­ County, and the Key Largo market is approximated by the lando market in view of the relatively minor size town of Key Largo, all in Florida. of Mortgage in relation to the market and the 3The Orlando banking market is approximated by all of Orange and Seminole Counties, excepting therefrom the com­ numerous other competitors and potential compet­ munities of Sanford and Oviedo, all in Florida. itors in the market. It is anticipated that affiliation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 455 with American will provide Mortgage with Amer­ of the public interest factors the Board must con­ ican’s managerial expertise in mortgage banking sider under § 4(c)(8) both favor approval of and enable it to attract capital at lower rates, which American’s proposal. factors should facilitate Mortgage’s operations. Accordingly, the applications are approved for These increased capabilities may be expected to the reasons summarized above. The proposed result in benefits to the public in the form of merger shall not be made before the thirtieth improved services and lower rates. calendar day following the effective date of this Also in conjunction with the proposed merger, Order, shall be made not later than three months American proposes to acquire the assets of Data after the effective date of this Order, unless such (total 1974 billings of $775,000) and thereby per­ period is extended for good cause by the Board, form certain data processing services for Ameri­ or by the Federal Reserve Bank of Atlanta. The can, its subsidiaries and other business enterprises. determination as to American’s data processing American does not presently have any data pro­ activities and the activities of Mortgage are subject cessing facilities. On this basis, and other facts to the conditions set forth in section 225.4(c) of of record, the Board concludes that consummation Regulation Y and to the Board’s authority to of the proposal would not have significant adverse require reports by, and make examinations of, effects on competition in any relevant area. In holding companies and their subsidiaries and to addition, it is expected that this acquisition will require such modification or termination of the result in improved internal operating efficiency for activities of a bank holding company or any of American and its subsidiaries, as well as permit its subsidiaries as the Board finds necessary to American to offer such data processing services assure compliance with the provisions and pur­ to other businesses. Furthermore, there is no evi­ poses of the Act and the Board’s regulations and dence to indicate that the acquisition of Mortgage orders issued thereunder, or to prevent evasion or Data by American would result in any undue thereof. concentration of resources, unfair competition, By order of the Board of Governors, effective conflicts of interests, unsound banking practices, June 27, 1975. or other adverse effects on the public interest. Voting for this action: Vice Chairman Mitchell and Based on the foregoing and other considerations Governors Bucher, Wallich, and Coldwell. Absent and not voting: Chairman Burns and Governor Holland. reflected in the record, the Board has determined that the considerations affecting the competitive (Signed) Theodore E. Allison, factors under § 3(c) of the Act and the balance [seal] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE ORDERS APPROVED BY THE BOARD OF GOVERNORS During June 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 Administration Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Clyde Bancorporation, Inc., The Exchange National 6/11/75 40 F.R. 25640 Clyde, Kansas Bank of Clyde, Clyde, 6/17/75 Kansas Mille Lacs Bancshares, Inc., First State Bank of 6/16/75 40 F.R. 26590 Onamia, Minnesota Onamia, Onamia, 6/24/75 Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin □ July 1975 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 Bank of Virginia Company, Bank of Virginia— 6/20/75 40 F.R. 27532 Richmond, Virginia Shenandoah, 6/30/75 Winchester, Virginia Southern Bancorporation, Bank of North Charleston, 6/27/75 40 F.R. 28875 Inc., Greenville, South North Charleston, 7/9/75 Carolina South Carolina 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 Hawaiian, Inc., Hawaii Thrift & Loan, 6/18/75 40 F.R. 27076 Honolulu, Hawaii Inc., Honolulu, Hawaii 6/26/75 First National Insurance Continue to engage in 6/18/75 40 F.R. 27077 Agency, Incorporated, certain insurance sales 6/26/75 Exeter, Nebraska activities Victoria Bankshares, Inc., Central Computers, Inc., 6/11/75 40 F.R. 26591 Victoria, Texas Victoria, Texas 6/24/75 ORDERS UNDER BANK MERGER ACT— APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank(s) date) citation United Jersey Bank/Northwest, Peoples Trust of 6/6/75 40 F.R. 25042 Dover, New Jersey New Jersey, Hacken­ 6/12/75 sack, New Jersey United Jersey Bank, The Second National 6/20/75 40 F.R. 27532 Hackensack, New Jersey Bank of Orange, 6/30/75 Orange, New Jersey ORDERS APPROVED BY THE SECRETARY OF THE BOARD During June 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 457 ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Peoples Bancorporation, Peoples Savings Bank, 6/3/75 40 F.R. 24960 Hampton, Iowa Elma, Iowa 6/11/75 Sooner Bancshares, Inc., Bryan County National 6/27/75 40 F.R. 28875 Caddo, Oklahoma Bank, Caddo, Oklahoma 7/8/75 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 Mercantile Bancorporation Inc., Home Trust Company, 6/27/75 40 F.R. 28676 St. Louis, Missouri Perryville, Missouri 7/8/75 ORDERS APPROVED BY FEDERAL RESERVE BANKS During June 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. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Federal Reserve Effective Register Applicant Bank(s) Bank date citation Ames National Corporation, First National Chicago 6/27/75 40 F.R. 28875 Ames, Iowa Bank, Ames, 7/9/75 Iowa Klein Bancorporation, Inc., The First Na­ Minneapolis 6/24/75 40 F.R. 28873 Chaska, Minnesota tional Bank of 7/9/75 Chaska, Chaska; State Bank of Cologne, Cologne; The Klein National Bank of Madison, Madison; First National Bank in Montevideo, Monte­ video; Victoria State Bank, Victoria; The First National Bank of Waconia, Waconia; and State Bank of Young America, Young America, all located in Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 Federal Reserve Bulletin □ July 1975 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 Ameribanc, Inc., St. Joseph, Exchange Bank Kansas City 6/5/75 40 F.R. 25639 Missouri of Richmond, 6/17/75 Richmond, Missouri Country Agencies & Invest­ Bunceton Kansas City 6/5/75 40 F.R. 25640 ments, Inc., Odessa, State Bank, 6/17/75 Missouri Bunceton, Missouri Peoples Banking Corporation, Frankenmuth Chicago 6/16/75 40 F.R. 27078 Bay City, Michigan Bank & Trust, 6/26/75 Frankenmuth, Michigan ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT— APPLICATIONS TO FORM BANK HOLDING COMPANY AND ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Full Service Insurance First State Bank Retain its Minneapolis 6/9/75 40 F.R. 26589 Agency, Inc., Buxton, of Buxton, general in­ 6/24/75 North Dakota Buxton, North surance Dakota agency activities Padgett Agency, Inc. The Citizens Padgett In- Kansas City 6/20/75 40 F.R. 27983 Greenleaf, Kansas National Bank, surance 7/2/75 Greenleaf, Agency, Kansas Greenleaf, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

459 Announcements APPOINTMENT OF —Advertisements concerning extensions of credit to be repaid in more than four instalments, MR. JACKSON AS A MEMBER and for which no finance charge is stated, shall OF THE BOARD OF GOVERNORS state that the cost of credit is included in the price of the goods and services involved. President Ford on May 22, 1975, announced his —Credit transactions primarily for agricultural intention to appoint Philip C. Jackson, Jr., as a purposes, where the amount financed exceeds member of the Board of Governors of the Federal $25,000, are exempt from the disclosure require­ Reserve System. Mr. Jackson’s appointment was ments of Regulation Z and the Truth in Lending Act. subsequently confirmed by the Senate on June 25 —Any unexpired right of rescission in residen­ and his oath of office was administered on July tial real property transactions is limited to 3 years 14. from the date of consummation of the transaction, The text of the White House announcement or the sale of the property, whichever occurs follows: earlier. In its order the Board stated that, due to confu­ The President has announced his intention to sion evident in comments received upon its pro­ nominate Philip C. Jackson, of Birmingham, Alabama, to be a member of the Board of posal concerning the right of rescission, that sec­ Governors of the Federal Reserve System. He tion had been rewritten to make it clear that the will succeed John E. Sheehan who resigned amendment does not extend the 3-day right of effective June 1, 1975. He will fill the unex­ rescission—that is, the right to decide not to go pired term of 14 years from February 1, 1968, to January 31, 1982. through with the transaction—to 3 years, but only limits to 3 years these unexpired rights that pre­ Mr. Jackson has been the Director and Vice viously had continued indefinitely. President in charge of the mortgage loan department of the Jackson Company in Bir­ mingham, Alabama. He joined the firm in PUBLICATION OF ANNUAL REPORT 1949. The Sixty-First Annual Report of the Board of Born on October 27, 1928, in Birmingham, Governors of the Federal Reserve System, cover­ Alabama, Mr. Jackson received his B.S. degree ing operations for the calendar year 1974, is from the University of Alabama in 1949. He available for distribution. Copies may be obtained did additional graduate work at Northwestern University in Chicago. upon request to Publications Services, Division of Administrative Services, Board of Governors of Mr. Jackson is married to the former Barbara the Federal Reserve System, Washington, D.C. Ellis Ritch and they have three children. 20551. AMENDMENTS TO REGULATION Z CHANGES IN BOARD STAFF The Board of Governors on July 10, 1975, an­ The Board of Governors has announced the ap­ nounced adoption of amendments to its Regulation pointment of Clyde H. Farnsworth, Jr., as Assist­ Z—Truth in Lending—to implement changes in ant Director in the Division of Federal Reserve the Truth in Lending Act. Bank Operations, effective August 1, 1975. Prior The amendments to Regulation Z—to be effec­ to joining the Board’s staff, Mr. Farnsworth, who tive August 8, 1975—are substantially the same has been with the Federal Reserve Bank of Rich­ as those published for comment last December 27. mond since 1969, was Assistant Vice President Among the amendments adopted are the follow­ and Economist at that Bank and also adjunct ing: faculty member of the Virginia Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 Federal Reserve Bulletin □ July 1975 University, University of Richmond, and John Board, First Bank & Trust Company of Boca Tyler Community College. He holds a B.A. and Raton, N.A., Boca Raton, Florida an M.S. from East Tennessee State University and Jean McArthur Davis, President, McArthur a Ph.D. from the University of Missouri. Dairy Companies, Miami, Florida The Board has also announced the resignations Appointed by Board of Governors of Samuel B. Chase, Jr., Adviser to the Board, Castle W. Jordan, President, Aegis Corpora­ Office of the Managing Director for Research and tion, Coral Gables, Florida (Branch Chairman) Economic Policy, and James L. Pierce, Associate David G. Robinson, President, Edison Com­ Director, Division of Research and Statistics. munity College, Fort Myers, Florida Alvaro Luis Carta, President, Gulf & Western OPENING OF MIAMI BRANCH Food Products, Vero Beach, Florida Counties served by the Miami Branch are: The Federal Reserve Bank of Atlanta has an­ Broward, Charlotte, Collier, Dade, Glades, nounced the opening of its Miami Branch, effec­ Hendry, Indian River, Lee, Martin, Monroe, tive July 1. The new branch is the first established Okeechobee, Palm Beach, and St. Lucie. by the Federal Reserve since 1927 when branch offices were opened at San Antonio (July 5) and Charlotte (December 1). ADMISSION OF STATE BANK TO Directors of the new branch are: MEMBERSHIP IN THE Appointed by Federal Reserve Bank FEDERAL RESERVE SYSTEM Michael J. Franco, Chairman, City National The following bank was admitted to membership Bank of Miami, Miami, Florida in the Federal Reserve System during the period Harry Hood Bassett, Chairman of the Board, June 16, 1975, through July 15, 1975: Southeast First National Bank of Miami, Miami, Florida Montana Thomas F. Fleming, Jr., Chairman of the Sidney ................ First United Bank of Sidney Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 Industrial Production Released for publication July 15 tile, paper, and chemical materials group, in­ creased sharply as inventory liquidation apparently The index of industrial production increased by came to an end in those industries. an estimated 0.4 per cent in June following eight consecutive months of decline. At 110.0 per cent INDUSTRIAL PRODUCTION of the 1967 average, however, the June index was Seasonally adjusted, ratio scale, 1967=100 12.4 per cent below last September. Increased TOT)\L - MATERIALS output of consumer goods and nondurable indus­ / trial materials in June more than offset further V-------- < / S PR i OD i UCT S, V i\ " _ I TOTAL I declines in business equipment and durable indus­ 1 1 1 1 1 1 1 1 1 trial materials. The level of the total index was revised upward for the previous 3 months. Auto assemblies rose 8 per cent in June to an annual rate of 7.2 million units. July car produc­ tion schedules indicate some further increase after allowance for the model changeover period. Out­ put of household appliances and nondurable con­ sumer goods continued to expand in June, but production of some durable consumer goods changed little. 1967=100 196970=100 - Annual rate, millions of units In addition to a further decrease in business equipment, construction products continued to fall off. Production of most durable goods materials, including steel and the equipment-supplying in­ dustries, declined further—indicating continued efforts to reduce inventories. On the other hand, F.R. indexes, seasonally adjusted. Latest figures: June. output of nondurable materials, especially the tex­ *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 Apr. May v June p Q4 Qi Q2 Total ......................................... 109.9 109.6 110.0 .4 -12.6 -13.1 -32.0 - 6.5 Products, total .................................. 113.0 112.9 113.1 .2 - 8.9 - 8.7 -23.8 - 2.8 Final products ................................ 112.7 113.1 113.2 .1 - 7.6 - 6.5 -23.2 - 1.8 Consumer goods ......................... 119.3 120.7 121.7 .8 - 6.6 -10.8 -22.2 5.4 Durable goods ........................ 107.8 109.9 111.8 1.7 -16.3 -37.0 -54.2 27.7 Nondurable goods .................. 123.7 124.8 125.4 .5 - 2.8 - 1.2 -10.6 - 2.2 Business equipment .................... 115.8 114.6 113.6 - .9 -12.7 - 2.4 -32.3 -16.1 Intermediate products ..................... 113.9 112.4 112.5 .1 -12.7 -15.9 -25.1 - 8.0 Construction products ................. 110.4 107.0 106.5 - .5 -17.8 -21.6 -28.8 -15.3 Materials .......................................... 105.1 104.4 105.1 .7 -18.4 -21.5 -45.4 -11.1 ^Preliminary. e 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 42 Real estate credit TION ON INSIDE BACK COVER A 45 Consumer credit A 48 Industrial production STATISTICAL RELEASES: REFER­ A 50 Business activity ENCE ON INSIDE BACK COVER A 50 Construction A 52 Labor force, employment, and U.S. STATISTICS: unemployment A 53 Consumer prices A 2 Member bank reserves, Federal A 53 Wholesale prices Reserve Bank credit, and related items A 54 National product and income A 5 Federal funds—Money market banks A 56 F/ow of funds A 6 Reserve Bank interest rates A 7 Reserve requirements INTERNATIONAL STATISTICS: A 8 Maximum interest rates; margin requirements A 58 U.S. balance of payments A 9 Open market account A 59 Foreign trade A 10 Federal Reserve Banks A 59 U.S. reserve assets A 11 Bank debits A 60 Gold reserves of central banks and A 12 Money stock governments A 13 Bank reserves; bank credit A 61 International capital transactions of the A 14 Commercial banks, by classes United States A 18 Weekly reporting banks A 74 Open market rates A 23 Business loans of banks A 75 Central bank rates A 24 Demand deposit ownership A 75 Foreign exchange rates A 25 Loan sales by banks A 25 Open market paper TABLES PUBLISHED PERIODICALLY: A 26 Interest rates A 29 Security markets A 76 Sales, revenue, profits, a/td dividends A 29 Stock market credit of large manufacturing corporations A 30 Savings institutions Banking and monetary statistics, 1974: A 32 Federal finance A 77 Principal assets and liabilities of A 34 U.S. Government securities commercial banks and number, A 37 Federally sponsored credit agencies by c/ass 0/ bank A 38 Security issues A 41 Business finance A 84 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 BANK RESERVES AND RELATED ITEMS □ JULY 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S.Govt, securities1 Special ury Drawing cur­ Gold Rights rency Held Other stock certificate out­ Bought under Loans Float 3 F.R. Totals account stand­ Total out­ repur­ assets 4 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 27,248 27,170 78 94 1,665 29,060 17,954 5* 396 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—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 Aue...................... 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 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....................... 87,080 86,117 963 110 2,061 3,237 93,214 11,620 400 9,410 May..................... 91,918 89,355 2,563 60 1,877 3,039 97,845 11,620 429 9,464 June?.................... 88,912 87,618 1,294 275 2,070 3,098 95,147 11,620 500 9,531 Week ending— 1975—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 2,075 3,315 93,730 11,620 400 9,415 30................. 91,411 88,467 2,944 241 1,765 3,281 97,557 11,620 400 9,437 May 7................. 92,125 88,923 3.202 34 1,681 3,424 98,377 11,620 400 9,435 14................. 91,358 89,449 1,909 17 1,750 3,347 97,446 11,620 400 9,456 21................. 92,529 89,494 3,035 121 2,220 2,629 98,458 11,620 400 9,462 28................. 92,156 89,724 2,432 84 1,821 2,735 97,606 11,620 486 9,469 June 4................. 90,748 88,833 1,915 84 2,159 3,061 96,905 11,620 500 9,561 11................. 86,150 86,150 38 2,122 3,026 92,044 11,620 500 9,527 18^................ 87,281 86,957 324 78 2,174 3,140 93,357 11,620 500 9,538 25p................ 89,859 88,434 1,425 188 1,979 3,165 95,975 11,620 500 9,542 End of month 1975—Apr....................... 93,917 88.812 5,105 1,539 1.942 3,297 101,880 11,620 400 9,531 May...................... 91,029 88,953 2,076 24 liSll 2,984 96,712 11,620 500 9,669 June?.................... 89,895 89,665 230 560 1,431 2,997 95,565 11,620 500 9,553 Wednesday 1975—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 11,620 400 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 2,860 3,260 96,341 11,620 400 9,419 30................. 93,917 88,812 5,105 1,539 1,942 3,297 101,880 11,620 400 9,531 May 7................. 91,579 89,209 2,370 21 2,188 3,319 98,051 11,620 400 9,453 14................. 91,356 89,655 1,701 20 2,342 3,417 98,079 11,620 400 9,460 21................. 95,465 89,505 5,960 728 2,140 2,672 102,015 11,620 400 9,468 28................. 94,337 89,640 4,697 481 2,118 2,939 100,751 11,620 500 9,475 June 4................. 89,002 88,142 860 457 2,890 3,011 96,188 11,620 500 9,481 11................. 84,979 84,979 115 2,573 3,149 91,514 11,620 500 9,538 18p................ 89,273 88,167 1,106 374 3,075 3,141 96,544 11,620 500 9,538 25^................ 93,269 88,738 4,531 1,101 2,184 3,070 100,618 11,620 500 9,553 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 nonsold 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 p. 164. agency and branch deposits at F.R. Banks that are associated with margi­ 4 BBeguilnlneintign , 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

JULY 1975 □ BANK RESERVES AND RELATED ITEMS A 3 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Desposits, other than member bank Member bank Cur­ Treas­ reserves Other reserves rency ury with F.R. Banks Other F.R. Period or date in cash F.R. lia­ cir­ hold­ ac­ bilities cula­ ings counts4 and With Cur­ tion Treas­ For­ Other3,6 capital4 F.R. rency Total8 ury eign Banks and coin 7 Averages of daily figures 7,609 2,402 616 7:*9 248 11,473 11,473 . 1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 .1970—Dec. 61,060 453 1.926 290 728 2,287 25,653 5,676 31,329 .1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 . 1972—Dec. 71,646 323 1,892 406 111 2,942 28,352 6,635 35,068 . 1973—Dec. 73,749 293 2,015 491 691 3,187 29,672 6,668 36,390 . 1974—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 28,264 6,870 35,134 .........Apr. 79,102 326 8,115 262 746 3,231 27,576 6,916 34.492 ........May 80,603 355 3,353 272 989 3,191 28,035 6,969 35,004 ........June*7 Week ending— 78,030 307 2,826 476 1,039 3,160 28,261 6,826 35,087 . 1975—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 28,809 6,440 35,249 .................23 78,137 302 7,902 279 576 3,342 28,477 7,018 35,495 ................30 78,405 307 8,960 232 688 3,141 28,098 7,139 35,237 .May 7 79,095 323 8,419 277 472 3,125 27,212 7,305 34,517 .......14 79,203 324 7,947 258 697 3,278 28,233 6,469 34,702 .......21 79,439 333 7,474 266 911 3,313 27,444 6,765 34,209 .......28 79,904 373 5,815 285 1,294 3,297 27,618 6,893 34,511 .June 4 80,476 380 1,833 258 1,108 3,009 26,627 7.080 33,707 .......11 80,775 363 1,464 306 1,069 3,135 27,903 7.080 34,983 ........ISP 80,685 370 4,224 243 823 3,258 28,034 6,698 34,732 .......25** End of month 78,443 301 8,363 270 573 3,452 32,028 7,018 39,046 . 1975—Apr. 79,782 373 7,036 310 1,159 3,396 26,445 6,893 33,338 ........May 81,073 348 5,773 373 701 3,354 25,615 7,098 32,713 ........June*7 Wednesday 78,322 312 2,430 429 795 2,908 28,642 6,826 35,468 ......1975—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 28,751 6,440 35,191 ......................23 78,443 301 8,363 270 573 3,452 32,028 7,018 39,046 ......................30 78,989 330 9,162 257 482 3,080 27,223 7,139 34,362 . May 7 79,382 329 6,871 253 482 3,187 29,055 7,305 36,360 .......14 79,400 338 7,017 253 694 3,342 32,459 6,469 38,928 .......21 79,972 321 7,687 294 1,318 3,392 29,362 6,765 36,127 .......28 80,251 390 1,858 254 1,098 3,027 30,911 6,893 37,804 .June 4 80,935 383 1,057 254 1,165 3,080 26,298 7.080 33,378 ........11 80,879 370 2,639 295 885 3,207 29,927 7.080 37,007 .......18» 80,972 370 5,497 294 741 3,452 30,965 6,698 37,663 .......25 p 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 □ JULY 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Sea­ Excess Borrow­ Excess Borrow­ rowquired sonal ings ings lgs 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 4 14,536 1,491 334 48 192 14 418 46 16,364 1,027 142 125 58 8 5 232 29 18,527 756 87 29 19 4 8 100 40 22,267 452 454 41 111 15 23 67 92 24,915 345 238 18 40 8 13 50 80 26,766 455 765 100 230 15 85 90 180 27,774 257 1,086 56 259 18 27 6 321 28,993 272 321 34 25 7 4 42 28 31,164 165 107 25 35 1 8 -35 42 31,134 219 1,049 -20 301 13 55 -42 264 34,806 262 1,298 41 -23 74 43 28 28 435 36,259 131 3,000 130 -26 1,303 -8 51 26 847 37,161 177 3,308 149 45 1,457 19 70 -12 933 36,851 178 3,351 165 -58 1,464 6 23 78 ,004 36,885 191 3,287 139 133 1,662 20 17 -77 816 36,705 91 1,793 117 -49 502 -18 36 36 686 36,579 258 1,285 67 -8 257 38 14 90 448 36,602 339 703 32 132 80 5 18 39 282 37,556 -64 390 13 -119 156 -16 16 -91 131 35,333 232 147 10 31 37 17 10 41 71 34,513 266 106 7 53 22 20 10 56 46 35,014 120 110 7 32 25 -23 14 -4 33 34,493 -1 60 9 -28 24 -21 -89 23 34,422 582 275 11 85 90 75 3 68 68 36,054 225 3,054 131 -37 1,210 2 15 61 983 35,658 131 2,729 136 26 1,296 21 40 -67 764 36,461 247 3,223 140 31 1,385 -17 139 44 715 36,437 99 2,788 133 -8 1,221 41 17 -76 860 36,678 283 1,070 51 141 226 4 -16 394 36,452 -159 648 35 -173 73 -36 26 -50 268 36,545 217 818 31 59 60 23 54 -39 287 36,416 429 662 29 137 72 52 89 257 37,011 577 561 24 -8 83 61 223 260 37,175 137 311 18 55 36 -27 -26 168 38,249 -42 609 12 -130 317 1 69 -89 115 38,079 186 594 12 29 328 1 45 136 37,066 174 142 10 71 -13 -24 109 36,579 395 98 11 133 33 84 86 35,970 59 90 10 -37 6 -20 -5 69 34,960 158 229 11 140 -22 -18 69 34,447 159 180 10 -15 29 39 35 70 34,386 409 70 9 117 4 90 60 34,252 230 60 7 122 15 -20 41 34,490 20 167 6 -96 88 -37 10 43 34,675 144 155 7 54 8 16 44 -12 45 34,808 279 51 -30 7 99 43 34,552 111 30 62 15 -51 23 35,076 219 22 25 -14 36 18 35,179 70 165 -3 42 16 25 -23 21 35,306 189 241 -11 67 1 37 56 66 34,926 311 34 177 21 -5 34 34,518 -1 17 -106 -26 -17 16 34,631 71 121 -33 98 9 -34 21 34,045 164 84 53 9 4 -5 21 34,177 334 84 18 61 19 137 23 33,743 -36 38 -76 -32 11 -55 25 34,584 399 78 -29 49 52 -130 29 34,611 121 188 -10 97 52 -103 52 Sfov. 15, 1972, includes $450 million of for reserve-requirement purposes has been (net . Banks are allowed to waive penalties demand deposits of more than $400 million) >n with bank adaptation to Regulation J for July 1972, p. 626. Categories shown here LthEeTrI”N . Beginning 1973, allowable deficiencies parallel the previous “Reserve city” and “Coi; tively statement week of quarter): Ql, $279 (hence the series are continuous over time). 12 million; Q4, $84 million. Beginning million. Transition period ended after Monthly and weekly data are ave ithin or which figures are preliminary, figures theN motoen.—th or week, respectively. total because adjusted data by class are Borrowings at F.R. Banks: Based on closir Effective Apr. 19, 1963, the Board’s Regul lendgnation of banks as reserve city banks ing by F.R. Banks, was revised to assist sm the seasonal borrowing needs of their commi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 actions2 of net of net dealers3 from at F.R. Federal deficit required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1975—May 7. 207 11,983 -11,777 73.1 18,600 6,616 4,919 13,680 1,697 2,408 603 1,806 14. 35 1 14,339 -14,305 88.7 20,190 5,851 4,295 15,896 1,556 2,327 622 1,705 21 . -48 100 14,144 -14,291 88.7 19,856 5,712 4,726 15,131 987 3,022 767 2,255 28. -30 38 13,223 -13,292 85.4 18,233 5,010 4,530 13,703 480 3,361 685 2,676 June 4. 123 61 14,066 -14,005 89.0 19,745 5,679 5,166 14,579 513 3,198 649 2.548 11 . 4 13 17,347 -17,355 112.8 22,227 4,881 4,477 17,751 404 4,597 533 4.005 18. 23 49 17,112 -17,137 106.9 22,029 4,917 4,457 17,572 460 3,938 389 3.549 25 . 84 124 15,612 -15,652 99.7 21,050 5,438 4,356 16,694 1,082 2,730 725 2.005 8 in New York City 1975—May 7. 164 2,765 -2,601 39.2 4,564 1,799 1,074 3,490 724 1,130 391 740 14. 15 4,758 -4,743 71.0 6,049 1,291 717 5,332 575 1,177 381 796 21 . -33 3,962 -4,093 60.9 5,627 1,665 1,156 4,471 509 1,504 362 1,143 28. 22 4,003 -3,990 63.2 5,113 1,110 891 4,222 219 1.269 264 1,005 June 4. 4,665 -4,709 72.7 5,570 906 906 4,665 1,393 241 1,152 11 . 6,343 -6,399 103.0 7,110 767 560 6,550 206 1,671 220 1,451 18. 5,977 -6,006 91 .7 6,773 797 742 6,031 54 1,774 181 1,593 25. 5,953 -6,013 95.2 6,683 730 730 5,952 1.269 273 996 38 outside New York City 1975—May 7 .. 43 9,218 -9,175 96.8 14,036 4,817 3,845 10,190 973 1,278 212 1,066 14.. 21 9,582 -9,562 101.1 14,141 4,560 3,578 10,564 982 1,150 241 909 21 .. -14 10,182 -10,198 108.5 14,230 4,047 3,570 10,660 477 1,518 406 1,112 28.. -52 9,220 -9,302 100.5 13,121 3,901 3,640 9,481 261 2,092 420 1,671 June 4.. 106 9,401 -9,295 100.4 14,175 4,773 4,260 9,914 513 1,805 409 1,397 11 .. 59 13 11,003 -10,957 119.4 15,117 4,114 3,916 11,201 198 2,927 313 2,614 18.. 4 11,135 -11,131 117.5 15,256 4,121 3,715 11,541 406 2,165 208 1,956 25.. 48 27 9,659 -9,639 102.8 14,367 3,626 3,626 10,742 1,082 1,461 451 1,010 5 in City of Chicago 1975—May 7. 30 3,631 -3,601 208.4 4,584 954 954 3,631 267 267 14. -4 4,081 -4,085 234.2 4,925 844 844 4,081 332 332 21 . -11 4,989 -5,000 286.5 5,665 676 676 4,989 377 377 28. 3,876 -3,876 229.3 4,700 824 824 3,876 370 370 June 4. 3,854 -3,830 224.3 4,804 950 941 3,863 332 332 11 . 3,778 -3,806 224.2 4,477 698 689 3,787 509 509 18. 4,451 -4,445 256.0 5,079 628 621 4,459 423 423 25. 4,128 -4,134 245.5 4,852 723 723 4,129 364 364 33 others 1975—May 7 .. 5,588 -5,575 71.9 9,451 3,864 2,891 6,560 973 1,012 212 800 14.. 5,501 -5,477 71 .0 9,217 2,734 2,734 6,482 982 818 241 577 21 .. 5,193 -5,199 67.9 8,564 3,371 2,894 5,671 477 1,141 406 735 28.. 5,345 -5,426 71.9 8,421 3,076 2,815 5,605 261 1,722 420 1,301 June 4.. 5,547 72.4 9,371 3,823 3,319 6,052 504 1,473 409 1,064 11 .. 7,225 95.6 10,641 3,416 3,227 7,413 189 2,418 313 2,105 18.. 6,684 86.4 10,176 3,492 3,094 7,082 398 1,742 208 1,533 25.. 5,531 71.6 9,516 2,903 2,903 6,613 1,082 1,096 451 645 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. —Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing anNd obtaec.k data, see Aug. 1964 pp. 944-74. Bulletin, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 F.R. BANK INTEREST RATES □ JULY 1975 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sec. 10(b) 2 Loans to all others under Under Secs. 13 and 13a1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 6/30/75 date rate 6/30/75 date rate 6/30/75 date3 rate 6/30/75 date rate Boston......................... 6 5/16/75 614 61/2 5/16/75 634 71/2 5/16/75 8 9 3/10/75 91/2 New York.................. 6 5/16/75 61/4 6i/2 5/16/75 634 7 6/24/75 71/2 9 3/10/75 91/2 Philadelphia............. 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Cleveland................... 6 5/16/75 614 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/10/75 9i/2 Richmond................. 6 5/16/75 614 61/2 5/16/75 634 7 6/9/75 71/2 9 3/10/75 91/2 Atlanta........................ 6 '5/16/75 614 61/2 5/16/75 634 7 6/3/75 71/2 9 3/10/75 91/2 Chicago...................... 6 5/16/75 614 61/2 5/16/75 634 7 6/9/75 71/2 9 3/14/75 91/2 St. Louis.................... 6 5/16/75 614 61/2 5/16/75 634 71/2 5/16/75 8 9 3/14/75 91/2 Minneapolis.............. 6 5/23/75 61/2 61/2 5/23/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Kansas City.............. 6 5/16/75 614 61/2 5/16/75 634 71/2 5/16/75 8 9 3/10/75 91/2 Dallas........................... 6 5/16/75 614 61/2 5/16/75 634 7 6/9/75 71/2 9 3/14/75 91/2 San Francisco.......... 6 5/16/75 61/4 61/2 5/16/75 634 7 6/24/75 71/2 9 3/10/75 91/2 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955. 21/z 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11......................... 434-5 5 1956—A A p u r g . . 2 2 10 4 3.. . 2 2 2 1 3 V / / 4 4 2 - - - 3 3 3 2 2 3 3 3 / / 4 4 1965—Dec. 3 1 6 0 3 . . . 4 4 41 - / 4 2 1/2 4 4 4 1 1 / /2 2 Dec. 2 1 1 1 4 3 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 1 / / 4 4 2 2 1 3 - - / 4 4 4 2 3 3 4 4 4 4 4 4 1 1 3 3 / / 4 4 2 2 31. 3 3 1957—Aug. 2 9 3 . . , 3 3^ -3 /2 1/2 3 3*4 1967— N Ap o r v . . 2 1 7 0 4 . . . 4 4 4 4 1 - -/4 4 2i 1 / /2 2 4 4 4 41 1/ / 2 2 1973—J M F a e a n b r . . . 2 1 2 6 5. . .. . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . . . . 5 5 5 1 - / 5 2 1/2 5 5 5 1 1 / / 2 2 N D o ec v . . 1 2 5 . ., 3 3~3Vl 3 3 1968- -Mar. 2 21 7 25 . .. 41/ 5 2-5 4 5 1/2 Apr. 2 1 3 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1 3 / 4 5 2 3 - - 6 4 534 6 5 51 3 / 4 2 1958—J M A S M A a e p u n a a p r g r . y t . . . . 2 2 21 1 1 1 4 7 2 9 13 8 5 2 . . . . . . . . . 2 2 2 2 1 1 1 3% 3 1 3 % 3 / 4 / / 2 2 1 ^ 4 4 4 * - - - % - - - - 2 3 3 4 2 3 2 2 % 14 2 2 2 2 2 2 3 1 1 1 3 1 1 3 1 3 3 / / / / 4 4 4 4 4 4 4 1969— A A D A p u p ec r g r . . . . 2 2 3 1 1 1 6 0 4 9 6 0 8 . . . . . . . 5 5 5 5 * 1 1 4 5 4 / 5 5 6 2 1 1 - - - 1 - 5 5 / 5 / 4 2 2 6 1 1 1 / / / 2 2 2 5 5 5 5 5 5 6 6 1 1 1 1 1 1 / / / / / / 2 2 2 2 4 2 1974— A J A u u p ly g r. . 2 3 1 2 1 1 2 0 8 5 5 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 7 V 6 6 7 7 0 i 1 1 - - - / / 8 6 2 7 2 1 1/ / 2 2 6 6 7 7 6 7 8 3 1 1 1 1 / / / / 2 2 2 2 23. 2 -21/2 2 534-6 6 Dec. 9......................... 734-8 734 Oct. 24. 21/2 1970—Nov. 11. 534-6 16......................... 734 734 Nov. 7. 21/2 13. 53/4 534 1959—Mar. 6. 21/2-3 3 Dec. 161.. 5 5 1 1 / / 2 2 - - 5 5 3 3/ / 4 4 5 5 3 3/ / 4 4 1975—Jan. 10 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 1 1/ /4 4 - -7 73 3 / 4 4 7 71 3/ / 4 4 J S M u ep a n y t e . 2 1 1 1 9 2 1 6 . . . . 3 3 % 3 31 - - 3 / 4 2 1/2 4 3 3 3 1 1 / / 2 2 1971—Jan. 1 4 1 8 . . . 51/ 5 4 V - 2 51/2 5 5 5 1 1 * / / 4 2 2 M Fe a b r . . 2 1 5 7 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 63 1 4 7 4 6 - 1 3 - 7 6 4 4 1 3 / 4 4 7 6 6 6 1 3 3 14 4 4 4 18. 4 4 15. 514 51/4 14......................... 614 61/4 1960—June 10 3 . . 3 3 * V 4 i - - 4 4 4 31/2 2 2 12 9 9.. . 5 5 5 - -5 5 1 1 / / 4 4 5 S 5 V4 May 2 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -61/4 6 6 S A e u p g t . . 1 1 9 4 2 . . . 3 3*i i 3 » J F u e l b y . 1 1 13 9 6 . . . 4 43 3 4 4 4 3 - - 5 5 4 5 5 434 In effect, June 30, 1975.... 6 6 1963—July 2 1 6 7 . . 3 3 - % 3i/2 3 31 1 / / 2 2 23. 5 5 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

JULY 1975 o RESERVE REQUIREMENTS A 7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963............. 16i/2 12 d 1966—July 14,21 4 4 5 Sept. 8,15 6 1967—Mar. 2............... 31/2 31/2 Mar. 16............ 3 3 1968—Jan. 11,18.... 161/2 17 12 121/2 1969—Apr. 17............. 17 171/2 121/2 13 1970—Oct. 1................. 5 Beginning Nov. 9, 1972 Net demand 2,4 Time 3 Other time Effective date 0-2 2-10 10-100 100-400 Over Savings Over 5 5, maturing in— 400 0-5 30-179 180 days days and over 1972—Nov. 9............... 8 10 12 6 I6I/2 171/2 7 3 7 3 7 5 Nov. 16............ 13 1973—July 19............... 10i/2 12i/2 131/2 18 1974—Dec. 12............. 171/2 6 3 1975—Feb. 13............. 71/2 10 12 13 I6I/2 In effect June 30, 1975 71/2 10 12 13 I61/2 3 3 6 3 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks............. 10 22 Net demand deposits, other banks........................ 7 14 Time deposits..................................................................... 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having pri2or to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the (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 4 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, was reduced to 8 p§r cent applicable to banks having obligations of these types aggregating less effective June 21, 1973, and was reduced to the current 4 per cent effective than $10 million. For details, including percentages and maturity classifi­ May 22, 1975. Initially certain base amounts were exempted in the com­ cations, see “Announcements” in Bulletins for May, July, Sept., and putation of the requirements, but effective Mar. l^f, 1974, the last of these Dec. 1973 and Sept. and Nov. 1974. reserve- free bases were eliminated. For details, see Regulations P and M. 6 The 16Vi per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. For other notes see 2(b) and 2(c) above. 7 See columns above for earliest effective date of this rate. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ serve cities, and on the same date requirements for reserves against net Note.—Required reserves must be held in the form of deposits with demand deposits of member banks were restructured to provide that each F.R. Banks or vault cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ JULY 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................. 4% Savings deposits........................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days............. 4 4 Vi Less than $100,000: 90 days to 1 year. 5 30-89 days............................. 5 5 5 5 Singl 2 1 e - - y m 2 e a a y t r u e s a r o i r t r s y . : m ..... o ... r ... e .. . .. ., 5 55V%i 9 2 1 0 V -2 i d V y a i e y a y s r e t s a o r o s r 1 . .. m y ... e . o . a .. r . r .. e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 s v V t i 6 6 5V V i i 6 6 5 % % 5 6 6 V V i i Less than $100,000: Minimum denomination 30 days to 1 year. 5 of$1,000: 2 1 - y 2 e a y r e s a o r r s . m ..... o ... r .. e .. . . .. . 5Vi 5 5V V 4 i 4 6 - y 6 e a y r e s a r o s r . .. m .... o ... r .. e ... . . . . . . . . . . . . . . . . . . . . . . . . . (4) 7% 7 V 4 7 7 V Ya i $1 3 0 0 0, - 0 5 0 9 0 d o a r y m s.. o ... r .. e .. : .... 5 Vi (3) $1 G 00 o , v 0 e 0 r 0 n m or e n m ta o l r e u . n ... i . t .. s .. . . . . . . . . . . . . . . . . . . . ( ( 5 3 ) ) ( ( 3 5 ) ) 7 ( V 3) i 7 ( V 3) a 60-89 days............. 5Y4 (3) 9 1 0 80 -1 d 7 a 9 y d s a to y s 1 .. .. y .. e .. a .. r . 5Vi 5Vz 6 6 Va ( ( 3 3 ) ) 1 year or more... 6% (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 2 Vi years or more. 2 Multiple-maturity time deposits include deposits that are automati­ Effective Nov. 1, 1973, a ceiling rate of 7Ya per cent was imposed on cally renewable at maturity without action by the depositor and deposits certificates maturing in 4 years or more with minimum denominations that are payable after written notice of withdrawal. of $1,000. There is no limitation on the amount of these certificates that 3 Maximum rates on all single-maturity time deposits in denominations banks may issue. of $100,000 or more have been suspended. Rates that were effective 5 Prior to Nov. 27, 1974, no distinction was made between the time Jan. 21, 1970, and the dates when they were suspended are: deposits of governmental units and of other holders, insofar as Regula­ tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 3 6 0 0 - - 5 8 9 9 d d a a y y s s 6 6 6 V V4 i p p e e r r c c e e n nt t ] f June 24, 1970 g re o c v e e i r v n e m in e t n e t r a e l s t u r n a i t t e s s w on er t e i m p e e r d m ep it o te s d it s t w o it h h o l d d e n s o a m vin in g a s t i d o e n p s o u s n it d s er a n $ d 1 0 c 0 o ,0 u 0 ld 0 90-179 days Ya 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 7Vi 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 50 50 1946— J J u an ly . 21 5 1 1 9 9 4 4 7 6— — J Ja a n n . . 2 3 0 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 0 5 0 17050 1947—Feb. 1 1949—Mar. 29....................... 75 75 1949—Mar. 30 1951—Jan. 16....................... 50 50 1951—Jan. 17 1953—Feb. 19....................... 75 75 1953—Feb. 20 1955—Jan. 3....................... 50 50 1955—Jan. 4 Apr. 22....................... 60 60 Apr. 23 1958—Jan. 15....................... 70 70 1958—Jan. 16 Aug. 4....................... 50 50 Aug. 5 Oct. 15....................... 70 70 Oct. 16 1960—July 27....................... 90 90 1960—July 28 1962—July 9....................... 70 70 1962—July 10 1963—Nov. 5....................... 50 50 1963—Nov. 6 1968—Mar. 10....................... 70 70 1968—Mar. 11 June 7....................... 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan. 3, 1974............................ 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ OPEN MARKET ACCOUNT A 9 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills1 Others within 1 year2 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur­ sales tions pur­ sales shifts, or pur­ sales maturity pur­ sales maturity pur­ sales maturity chases chases redemp­ chases shifts chases shifts chases shifts tions 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 4,880 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—May 737 100 112 2,563 26 -2,663 31 38 100 June 614 291514 204 48 34 78 16 July. 988 27 53 9 36 Aug. 1,652 850 22 -2-,280607 1,025070 1,940 -130 O Se c p t t .. . 7 54 1 7 7 1,151605 1,0 7 6 8 3 6 65 53 37 D No e v c . . . 1,4 9 2 73 2 4 27 2 3 6 1076 1 8 4 5 8 -1,6 1 2 2 3 6 1 9 23 2 1 -1 ,7 2 5 6 7 5 7 3 8 -465 2250 ’200 1975—Jan... 341 945 600 14 305 61 26 Feb.. 357 460 900 2,437 129 -2,836 113 249 21724 150 Mar.. 760 156 487 1,579 -1,494 361 194 450 Apr.. 2,119 318 506 148 485 274 164 May. 903 354 407 50 -3,131 6,635 -3,801 298 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Net Period Govt, chase change 3 securi­ agree­ Repur­ Gross Gross Gross ties Gross Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions sales chases chases sales chases tions right ments 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 4 3 0 1 2 1 1 1 1 1 0 3 8 2 2 , , , , . 1 5 1 5 3 2 3 1 4 6 1 7 5 2 2 4 3 6 5 5 , , , , , 8 6 4 8 2 8 4 3 6 1 2 0 0 7 4 4 4 2 2 2 , , , , , 6 0 5 8 1 8 1 9 6 6 2 9 2 2 0 4 6 2 1 1 5 4 3 6 2 , , , , , 2 3 7 2 1 2 1 8 0 7 9 9 0 5 7 2 4 6 1 1 2 3 5 6 2 , , , , , 8 3 7 2 1 0 1 8 0 7 1 9 0 5 7 4 7 3 7 3 4 1 1 4 3 , , , , , 7 3 1 7 8 4 3 0 5 5 1 3 3 5 9 4 7 3 3 7 3 0 3 2 4 , , , , , 5 9 8 2 7 1 5 2 4 9 9 8 7 9 5 4 8 8 1 - , , , 3 , 9 0 6 9 1 8 7 1 8 2 8 6 4 0 3 1 , , 0 1 4 8 8 9 8 6 7 7 5 5 2 3 3 3 2 7 9 2 0 - 4 1 8 6 2 0 8 9 1 9 5 - - - 1 2 9 6 2 1 2 -1 -4 1 3 4 2 8 6 5 1 0 48 9 6 , , , ,9 1 8 2 2 8 4 6 2 7 9 26 7 2 1974— D N J A S O J M u u e u e o c p a n l c v g y t t y e . . . . . . . . . . . . , , 1 1 1 1 , , , , 2 7 1 6 8 5 9 7 5 6 1 5 9 4 4 9 4 5 3 2 3 7 4 0 1,1 4 2 2 8 9 5 1 1 7 2 1 5 6 5 0 1 3 6 05 0 4 0 1,0 2 2 7 6 3 8 0 3 86 6 4 1 9 8 9 6 2 4 4 2 , , , , . . , , * 8 4 0 5 5 5 5 6 5 2 8 8 7 8 1 5 0 4 7 6 0 'i 1 i 9 6 7 , 4 4 2 * , , , , , , 7 9 4 2 5 5 5 6 8 0 8 8 8 1 2 2 4 6 7 6 0 1 4 2 4 6 9 3 6 1 , , , , , , , , 0 2 5 6 1 9 1 4 5 6 1 9 9 9 2 7 1 8 9 6 0 0 4 2 1 4 4 2 3 6 6 8 1 ,, , . , , , , 16 9 5 0 6 6 8 2 5 1 6 4 6 9 9 1 1 8 5 5 8 7 6 - - 2 1 3 1 1 - - , , 4 , 9 , - , 3 6 0 6 3 9 9 1 8 8 2 8 4 8 6 1 1 4 8 8 7 2 2 7 2 3 3 3 3 6 0 0 3 6 0 1 1 1 8 7 9 0 3 7 1 1 5 6 2 5 3 - - 3 2 4 3 1 7 7 6 2 4 2 0 9 2 4 -1 1 1 1 04 2 8 5 7 1 0 1 0 8 9 4 6 - - 2 - 1 2 2 1 1 7 0 8 0 1 8 4 0 7 1 5 8 7 2 - --21 1 2 2 3 ,, , , , , 01 9 7 1 3 3 3 1 7 1 3 5 2 9 2 1 9 0 5 2 5 3 2 10,367 1975—Jan.. 746 945 600 9,237 9,260 8,748 844 14 -409 -11023 -136 387 A M Fe p a b r r . . . . . 3 3 , . 1 3 6 8 6 7 9 2 3 4 3 1 1 6 5 8 0 6 1,7 9 5 8 0 0 8 6 0 1 1 7 5 2 , , , 1 9 3 6 3 7 7 3 5 1 1 6 3 6 2 , , , , 6 0 7 2 4 36 1 4 34 6 1 1 5 1 2 , , , 0 2 7 1 6 7 1 7 4 1 6 8 0 , . , 9 5 3 5 0 2 1 5 8 6 - , 2 4 3 5 2 3 8 8 2 231760 - 8 2 12 -3 2 8 4 4 8 7 6 3 - 2 5 4 -3 4 2 9 3 3 9 6 7 - , 1 8 3 3 2 0 6 9 9 May. 953 354 407 2,996 19,489 21,952 -2,224 97 -567 55 -375 -3,207 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 * * * 1 1 1 1 9 9 9 9 7 7 7 7 2 3 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 5 9 18 7 4 2 154 3 * * 3 * * * * 1 9 6 8 4 2 * 1 1 1 1 20 8 4 3 6 1974—A M p a r y ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 6 * * 5 5 * * 57 * 1 1 S O J N J A D u u e o u c e p l n t v c g y t . e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 2 4 9 4 9 0 0 2 0 0 2 8 * ♦ * * * * * * 5 * * * 1 1 * * * * * * * ' 3 8 3 6 9 1 8 6 4 8 1 1 1 1 1 1 1 1 1 1 1 8 8 8 0 0 0 Digitized fo 1 r 9 F 75 R — A J F M S a e n a E b r .. R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2 9 * * * * * * * * * 17 1 1 1 1 1 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS □ JULY 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1975 1975 1974 June 25 June 18 June 11 June 4 May 28 June 30 May 31 June 30 Assets Gold certificate account........................................... 11,620 11,620 11,620 11,620 11,620 11,620 11,620 11,460 Special Drawing Rights certificate account. 500 500 500 500 500 500 500 400 Cash...................................................................... 357 357 353 356 357 360 366 218 Loans: 1,101 Member bank borrowings.................. 374 115 457 481 560 24 3,210 Other............................................................... Acceptances: H Bo e u ld g h u t n o d u er t r r i e g p h u t r ... c .. h .. a ... s .. e .. .. a .. g ... r .. e .. e .. m ..... e .. n ... t . s .. . 6 3 8 1 1 3 672 9 698 7 1 1 0 9 9 7 1 4 36 0 682 712414 20 97 7 Federal agency obligations: Bought outright......................................... 5,085 5,085 5,085 5,085 5,091 5,085 5,091 2,858 Held under repurchase agreements. 354 60 162 449 61 316 270 U.S. Govt, securities: Bought outright: Bills.................................... 36,869 36,631 33,443 36,606 38,098 37,172 37,411 37,274 Certificates—Special.. Other... Notes................................. 42,319 42,038 42,038 42,038 42,038 42,886 42,038 39,692 Bonds................................ 4,465 4,413 4,413 4,413 4,413 4,522 4,413 2,822 Total bought outright............................ 83,653 183,082 179,894 183,057 184,549 184,580 183,862 179,788 Held under repurchase agreements. 4,177 1,046 698 4,248 169 1,760 696 Total U.S. Govt, securities. 87,830 84,128 79,894 83,755 88,797 84,749 85,622 80,484 Total loans and securities......................... 95,364 90,328 85,792 90,287 95,694 91,137 91,918 87,126 Cash items in process of collection... 7,630 9,086 7,521 7,955 7,736 *5,606 6,326 7,702 Bank premises................................................ 2882 2852 2842 2852 2812 2882 2824 239 Operating equipment................................... Other assets: 10 Denominated in foreign currencies. 4 39 16 3 25 4 90 All other........................................................ 2,776 2,844 2,824 2,708 2,653 2,682 2,694 935 *112,220 Total assets. *118,541 *115,032 108,935 113,729 118,846 113,714 108,170 Liabilities F.R. notes....................................................... 72,146 72,068 72,133 71,516 72,229 70,852 65,295 Deposits: Member bank reserves....................... *30,965 *29,927 26,298 30,911 29,362 *25,615 26,445 30,086 U.S. Treasury—General account. 5,497 2,639 1,057 1,858 7,687 5,773 7,036 2,919 Foreign........................................................ 294 295 254 254 294 373 310 384 Other: All other2.............................................. 741 1 ,165 1,098 1,318 701 1,159 Total deposits. *37,497 *33,746 28,774 34,121 38,661 *32,462 34,950 34,151 6,011 Deferred availability cash items................ 5,446 1,120 4,948 5,065 5,618 4,175 4,516 51,,410015 Other liabilities and accrued dividends. 1,262 1,093 1,144 1,151 1,076 1,099 Total liabilities. *116,351 *112,945 106,948 111,846 116,605 *109,942 111,417 105,952 Capital accounts Capital paid in................................................................................ 909 910 909 909 907 909 908 878 Surplus................................................................................................ 897 897 897 897 897 897 897 844 Other capital accounts............................................................... 384 280 181 77 437 472 492 496 *112,220 Total liabilities and capital accounts.................................. *118,541 *115,032 108,935 113,729 118,846 113,714 108,170 Contingent liability on acceptances purchased for foreign correspondents.......................................................... 795 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................. 39,507 40,148 40,272 40,449 39,541 *39,539 40,502 29,637 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)............ 76,755 76,571 76,333 75,836 75,526 77,001 75,777 69,490 Collateral held against notes outstanding: Gold certificate account.......................................... 11,618 10,291 10,291 9,873 9,103 11,596 9,876 2,175 Special Drawing Rights certificate account. 286 227 208 190 170 292 190 Acceptances................................................................... U.S. Govt, securities................................................ 68,600 69,500 69,600 69,850 70,430 68,650 69,850 68,295 Total collateral. 80,504 80,018 80,099 79,913 79,703 80,538 79,916 70,470 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

JULY 1975 □ FEDERAL RESERVE BANKS; BANK DEBITS A 11 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 June 25 June 18 June 11 June 4 May 28 June 30 May 31 June 30 Loans—Total..................................................................................... 1,101 374 115 457 485 560 23 3,209 Within 15 days............................................................................. 1,097 370 109 448 480 552 20 3,157 16-90 days....................................................................................... 4 4 6 9 5 8 3 52 91 days to 1 year.......................................................................... Acceptances—Total........................................................................ 994 681 698 828 876 682 865 304 Within 15 days............................................................................. 399 91 106 206 226 93 229 225 16-90 days....................................................................................... 388 390 376 384 389 383 394 79 91 days to 1 year......................................................................... 207 200 216 238 261 206 242 U.S. Govt, securities—Total...................................................... 87,830 84,128 79,894 83,755 88,797 84,749 85,622 80,484 Within 15 days1........................................................................... 9,438 6,944 2,355 4,425 9,356 3,891 5,087 4,802 16-90 days....................................................................................... 19,476 18,176 18,482 20,106 20,657 21,187 21,911 25,150 91 days to 1 year......................................................................... 20,147 20,557 20,606 20,773 20,277 20,972 20,117 20,697 28,560 28,407 28,407 28,407 28,463 28,366 28,463 19,914 7,070 6,957 6,957 6,957 6,957 7,137 6,957 7,945 3,139 3,087 3,087 3,087 3,087 3,196 3,087 1,976 5,439 5,145 5,085 5,247 5,540 5,146 5,407 3,128 Within 15 days1........................................................................... 401 107 199 523 109 390 275 16-90 days....................................................................................... 283 283 225 224 189 282 189 57 91 days to 1 year......................................................................... 495 495 600 525 529 495 529 397 1-5 years.......................................................................................... 2,552 2,552 2,552 2,529 2,529 2,552 2,529 1,274 5-10 years........................................................................................ 1,147 1,147 1,147 1,209 1 ,209 1,147 1,209 754 Over 10 years................................................................................. 561 561 561 561 561 561 561 371 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period Leading SMSA’s Total 232 Leading SMSA’s Total 232 Total SMSA’s 226 Total SMSA’s 226 233 (excl. other 233 (excl. other SMSA’s 6 others2 N.Y.) SMSA’Ns.Y.SMSA’s N.Y. 6 others2 N.Y.) SMSA’s 1974—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 68.9 Sept....................................... 22,017.5 9,970.8 5,092.1 12,046.7 6,954.7 125.1 310.5 127.5 83.8 66.9 Oct......................................... 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 11,698.4 6,830.1 127.2 321 .8 125.9 83.4 67.3 Feb........................................ 22,952.7 10,918.0 4,992.8 12,034.7 7,041.9 133.3 343.2 127.4 85.8 69.6 Mar....................................... 22,182.9 10,241.1 4,899.9 71,941.8 7,041.9 125.0 318.3 118.2 82.2 67.8 Apr........................................ r22,696.7 10,810.3 r4,770.6 rll ,886.5 *•7,115.9 '•127.6 328.2 *•115.5 r82.0 r68.7 May. .................................. 22,748.5 10,826.1 4,858.9 11,922.4 7,063.5 129.3 333.9 121.5 83.1 68.2 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 □ JULY 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi Mi M 3 M4 Ms M\ M 2 M 3 Mi Ms Composition of measures is described in the Note below. 1972—Dec........................................ 255.8 525.7 844.9 569.7 888.8 263.0 530.7 848.0 574.9 892.2 1973—Dec........................................ 271.5 572.2 919.6 636.0 983.4 279.1 577.3 922.8 641.3 986.8 1974—May...................................... 277.6 591 .6 "948.6 670.2 "i ,027.1 272.9 589.7 "948.2 666.9 "1,025.4 June...................................... 280.0 597.1 "955.8 678.4 n ,037.1 278.2 596.5 "957.2 676.2 "1 ,036.8 July....................................... 280.4 599.6 r959.6 683.2 "1 ,043.2 280.0 599.2 "960.9 681 .9 "1 ,043.7 Aug....................................... 280.5 601 .9 "962.6 685.7 1,046.4 277.3 598.4 958.7 685.5 1,045.8 Sept....................................... 280.7 603.4 965.0 688.2 1,049.9 278.9 600.3 960.8 689.0 1,049.5 Oct......................................... 281 .6 607.6 970.7 693.8 1,056.9 281 .2 605.7 967.4 694.5 1,056.2 Nov....................................... 283.6 611 .6 976.9 697.1 "1 ,062.5 285.1 609.8 972.8 696.8 1,059.9 Dec........................................ 284.4 613.5 981 .7 703.8 1,072.0 292.3 618.6 985.1 709.1 1,075.5 1975—Jan......................................... 282.2 615.5 987.0 708.3 1,079.8 289.3 621 .5 992.4 713.4 1,084.4 Feb........................................ 283.5 620.3 995.6 712.4 1,087.6 280.4 617.9 993.3 707.1 1,082.5 Mar....................................... 286.1 626.4 1,007.2 "716.1 1,097.0 283.3 625.9 1,008.6 "713.9 "1 ,096.6 Apr........................................ 287.1 630.4 1,017.2 718.8 "1 ,105.6 288.7 634.8 "1 ,023.9 720.6 "1,109.8 May*................................... 289.7 637.3 1,029.5 722.8 1,115.1 284.9 635.5 1,029.2 719.6 1,113.3 Note.—Composition of the money stock measures is as follows: M3: M2 plus mutual savings bank deposits, savings and loan shares, and credit union shares (nonbank thrift). ba M nk i s : o A th ve e r r a t g h e a s n o d f o d m ai e l s y t i f c i g i u n r t e e s r b f a o n r k ( 1 a ) n d d em U. a S n . d G d o e v p t o ., s i l t e s s s o f c a c s o h m i m te e m r s c ia in l M M $ u : M M32 p p l l u u s s l l a a r r g g e e n n e e g g o o t t i i a a b b l l e e C C D D ’ ’ s s . . 2 3 process of collection and F.R. float; (2) foreign demand balances at F.R. For a description of the latest revisions in M\, M , and M , 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” comm2ercial banks. on pp. 817-27 of the Dec. 1974 Bulletin. M : Averages of daily figures for Ml 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—May.................. 64.3 213.3 78.5 314.0 392.5 "357.0 64.1 208.8 151.3 54.8 77.2 316.7 393.9 "358.5 7.6 June.................. 64.6 215.4 81.3 317.1 398.4 "358.7 64.8 213.5 153.6 56.1 79.6 318.3 397.9 "360.7 6.1 July.................... 64.8 215.6 83.6 319.2 402.8 "360.0 65.3 214.7 154.4 56.5 82.8 319.2 402.0 "361.7 5.4 Aug.................... 65.5 215.0 83.8 321.5 405.2 360.7 65.7 211 .6 152.3 56.1 87.1 321.1 408.2 360.3 4.0 Sept................... 65.9 214.8 84.8 322.7 407.5 "361.7 65.8 213.1 153.3 56.6 88.7 321.3 410.1 360.5 5.5 Oct..................... 66.5 215.2 86.2 325.9 412.1 "363.2 66.4 214.7 154.4 57.1 88.8 324.6 413.3 361.7 3.7 Nov................... 67.4 216.2 85.5 328.0 413.6 365.3 67.9 217.3 156.0 57.7 87.1 324.6 411.7 363.0 3.4 Dec.................... 67.9 216.5 90.3 329.1 419.4 368.2 69.0 223.3 160.4 58.9 90.5 326.3 416.8 366.5 4.9 1975—Jan..................... 68.2 214.0 92.7 333.3 426.0 371.5 67.8 221 .5 158.9 58.7 91.9 332.2 424.1 371.0 4.0 Feb.................... 68.8 214.7 92.1 336.8 428.9 375.3 67.9 212.6 152.4 56.6 89.2 337.4 426.6 375.4 3.4 Mar................... 69.5 216.6 89.8 340.3 430.0 380.8 68.9 "214.4 "154.0 57.1 88.1 342.6 430.6 382.7 3.9 Apr.................... 69.6 217.5 88.4 343.3 431 .7 "386.8 69.2 219.5 157.6 58.8 85.8 346.1 432.0 "389.1 4.2 May*............... 70.3 219.4 85.5 347.6 433.1 392.2 70.1 214.8 154.1 57.8 84.1 350.6 434.7 393.8 4.2 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

JULY 1975 □ BANK RESERVES; BANK CREDIT A 13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 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—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 0.7 495.1 327.2 165.0 2.9 495.8 502.6 Feb........ 35.46 35.32 35.27 33.61 489.2 328.9 159.7 0.6 487.0 326.5 158.0 2.4 495.7 493.5 Mar___ 34.85 34.74 34.65 33.03 491.6 329.2 161.7 0.7 491.6 328.9 159.8 2.8 498.1 498.1 Apr......... 35.08 34.97 34.93 33.11 493.5 329.7 161.7 2.1 495.4 329.1 163.2 3.1 500.2 502.2 May___ 34.64 34.57 34.48 32.81 493.7 329.0 162.6 2.1 491 .8 329.8 159.0 3.0 501.2 499.2 1 Averages of daily figures. Member bank reserve series reflects actual by Regulation D. Private demand deposits include all demand depos ts 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 l s o o a ld n s 2 Total l P oa lu n s s T u re r a y s­ Other4 ments 1 Total i s lo o a ld n 2 s Total l P oa lu n s s T u re r a y s­ Other4 sold2 sold 2 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—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 r687.1 r498.3 r503.1 182.6 185.3 48.7 140.1 r705 .7 '510.7 r515 .5 186.8 189.5 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. 26p.... 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. 26^___ 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? . . . 696.2 492.4 497.0 179.8 182.5 64.5 139.3 695.2 490.6 495.2 180.4 183.1 63.7 140.9 May 28p.... 698.3 489.6 494.3 178.2 181.0 68.8 139.9 694.7 488.4 493.1 177.8 180.6 65.6 140.6 June 30^___ 698.8 484.5 489.2 175.3 178.2 73.0 141.3 703.0 491.8 496.5 177.9 180.8 68.8 142.4 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright for banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re­ was also different. On the new basis, both “Total loans” and “Com­ classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by Note.—Total loans and investments: For monthly data, Jan. 1959about $400 million as of June 30, 1972. June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, 4 Farmers Home Administration insured notes included in “Other Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current securities” rather than in loans beginning June 30, 1971, when such notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaled about $700 million. the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: 5 Data beginning June 30, 1974, include one large mutual savings For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. bank that merged with a nonmember commercial bank. As of that date A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for Digitized fort hFerRe AwSerEe Rin creases of about $500 million in loans, $100 million in “Other last Wednesday of month except for June 30 and Dec. 31; data are partly securities,” and $600 million in “Total loans and investments.” or wholly estimated except when June 30 and Dec. 31 are call dates. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 COMMERCIAL BANKS □ JULY 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia­ Interbank3 Other Total Num­ FRS membership Cash bilities Bor­ capital ber and FDIC assets 3 and row­ ac­ of insurance Total Loans capital Total 3 Demand ings counts banks 1 U.S. Other ac­ De­ Treas­ 2 counts4 mand Time Time 5 ury U.S. Other Govt. Last-Wednesday-of-month series 6 All commercial banks: 1941-—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,,349 15,952 23 7,173 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 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972-—Dec. 31... 598,808 414,696 67,028 117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973-—Dec. 31... 683,799 494,947 58,277 130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974-—June 30... 718,713 528,951 52,114137,648 126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 14,337 July 31... 720,730 531,580 52,230136,920107,850 872,560 695,230 33,580 9,680 4,360 243,870 403,740 68,030 61,530 14,367 Aug. 28... 722,110 533,320 52,010136,780100,610 865,740 688,490 30,530 9,970 4,070 235,780 408,140 67,230 61,530 14,383 Sept. 25... 721,160 532,890 50,690137,580107,390 873,710 692,830 29,76010,610 7,380 236,550 408,530 67,920 61,850 14,398 Oct. 30... 723,330 534,520 50,730138,080110,770 880,750 700,420 33,15010,180 3,080 243,090 410,920 68,350 62,180 14,422 Nov. 27... 729,640 539,400 52,140138,100116,220 894,530 708,150 34,23010,310 3,910 248.730 410,970 71,470 62,210 14,440 Dec. 31 c.. 744,152 549,203 54,453 140,496128,055 919,612 747,951 43,48311,496 4,807 267;534 420,630 58,375 63,655 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 54,720139,130103,470 877,120 701,120 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. 30p.. 728,300 523,680 63.720140,900113,280 895,310 720,410 32,79011,880 7,950 242,150 425,640 60,620 64,940 14,535 May 28*.. 730,170 523,950 65;580140,640113,340 896,550 722,290 32,03011.200 2,980 245,960 430,120 60,810 64,890 14,555 June 25*. . 733,370 523,200 67,990142,180110,750 898,250 721,170 31,21010;830 3,810 244,610 430,710 62,730 65,430 14,555 Membersof F.R. System: 1941-—Dec. 31... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947-—Dec. 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960-—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970-—Dec. 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 1971-—Dec. 31... 405,087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972-—Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973-—Dec. 31... 528,124 391,032 41,494 95,598 100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974-—June 30... 550,388 415,061 35,934 99,393 108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 5,761 July 31... 552,643 418,088 35,858 98,697 91,430 680,511 533,807 31,153 8,598 3,180 186,360 304,516 63,042 46,907 5,766 Aug. 28... 552,845 418,727 35,878 98,240 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,816 5,766 Sept. 25... 550,843 417,631 34,683 98,529 91,002 679,160 531,194 27,831 9,522 5,782 180,114 307,945 62,166 47,054 5,774 Oct. 308.. 548,622 415,941 34,813 97,868 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 98,266 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 38,924100,096107,008 715,675 575,612 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,i57 8,991 1,989 178,596 317,517 58,868 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. .. 550,756 406,676 45,142 98,938 96,694 692,147 549,824 31,10210,433 6,212 184,693 317,384 55,738 49,267 5,789 May 28... 551,264 405,803 46,918 98,543 96,455 691,485 549,996 30,191 9,751 2,178 187,439 320,437 56,140 49,188 5,790 June 25 553,172 404,658 48,701 99,813 94,413 692,639 548,633 29,557 9,388 2,861 186,272 320,555 57,965 49,593 5,790 Call date series Insured banks: Total: 1 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750! 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 31».. 458,919 312,006 61,438 85,4751 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 66,679 116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961 129,625 116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—June 30... 709,904 521,424 51,832136,648 123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 61,003 14,108 Dec. 31'.. 734,561 541,131 54,135 139,295125,388 906,385 741,713 42,58710,693 4,799 265,472 418,162 55,993 63,043 14,216 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 319.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—Dec. 31... 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4,599 1972—Dec. 31... 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—Dec. 31... 398,236 293,555 30,962 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 4,659 1974—June 30... 418,329 313,659 27,631 77,039 73,703 516,632 407,915 20,086 4,912 5,038 145,954 231,925 48,123 34,966 4,693 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 4,706 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ COMMERCIAL BANKS A 15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets3 bilities row­ ac­ of insurance Total Loans U.S. and 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 1,074 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"... 165,709 111,300 15,211 39,199 18,380 190,435 165,827 1,525 642 1 ,616 61,240 100,804 3,138 14,799 8,436 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 329 i.,:291 253 13 329 852 1947—Dec. 317... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 319... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—Dec. 31.... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31.... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31.... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—June 30.... 9,269 7,987 282 1,001 2,951 12,770 6,610 1,481 476 12 2,209 2,432 2,033 620 229 Dec. 31.... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 8 2,062 2,857 2,382 611 249 Total nonmember: I 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 157 5,!504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31.... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31.... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16,562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—June 30____ 168,456 114,020 16,180 38,256 17,516 192,227 163,016 2,804 1,086 1,743 58,789 98,593 4,711 14,677 8,576 Dec. 31"... 175,690 119,761 15,530 40,400 21,047 204,051 172,454 2,422 1,445 1,624 63,302 103,661 5,520 15,410 8,685 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 net as previously reported. reclassified from loans to securities effective June 30, 1966. This reduced “Total loans” and increased “Other securities” by about $1 billion. Note.—Data are for all commercial banks in the United States (includ­ “Total loans” include Federal funds sold, and beginning with June 1967 ing Alaska and Hawaii, beginning with 1959). Commercial banks represent securities purchased under resale agreements, figures for which are in­ all commercial banks, both member and nonmember; stock savings cluded in “Federal funds sold, etc.,” on p. A-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, 1969, 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 □ JULY 1975 ASSETS BY CLASS OF BANK, DECEMBER 31, 1974 (Amounts in millions of dollars) Member banks1 All Insured Large banks Account commercial commercial Nonbanks banks member Total New City of Other All other banks1 York Chicago large City Cash bank balances, items in process................................... 128,055 125,388 107,008 27,604 4,816 40,126 34,462 21,047 Currency and coin...................................................................... 11,659 11,633 8,846 691 198 2,889 5,068 2,812 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.......... 36,083 34,327 21,695 7,265 ’357 4,382 9*692 14,388 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...................... 1,751 1,331 1 ,165 412 89 532 132 586 Cash items in process of collection................................... 47,278 47,113 45,588 14,214 2,115 21,115 8,144 1,690 Total securities held—Book value.......................................... 194,949 193,430 139,020 16,412 5,612 47,254 69,741 55,929 U.S. Treasury................................................................................ 54,453 54,135 38,924 5,332 1,820 13,323 18,448 15,529 Other U.S. Govt, agencies...................................................... 32,842 32,380 20,859 2,005 874 6,450 11,529 11,984 States and political subdivisions.......................................... 100,397 100,032 74,283 8,288 2,706 25,761 37,528 26,115 All other securities...................................................................... 7,256 6,883 4,954 787 212 1,719 2,236 2,302 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.................................................... 186,960 185,446 131,105 13,372 4,781 43,449 69,502 55,855 U.S. Treasury........................................................................... 51,905 51,592 36,403 4,362 1,360 12,286 18,396 15,502 Other U.S. Govt, agencies................................................. 31,490 31,028 19,511 1,464 753 5,813 11,480 11,979 States and political subdivisions..................................... 97,027 96,661 70,946 6,947 2,456 24,150 37,393 26,081 All other...................................................................................... 6,537 6,164 4,244 599 212 1,200 2,233 2,293 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.......................................................................................... 509,558 502,258 399,990 82,049 24,261 149,804 143,876 109,567 Real estate loans.......................................................................... 130,593 130,309 94,584 8,184 1,325 35,945 49,131 36,009 Secured by farmland............................................................ 5,904 5,887 2,634 14 2 345 2,274 3,270 Secured by residential.......................................................... 81,610 81,408 60,577 4,567 887 24,133 30,991 21,033 1- to 4-family residences................................................ 74,039 73,863 54,316 3,135 827 21 ,198 29,155 19,723 FHA insured................................................................... 5,914 5,870 5,110 254 40 2,815 2,000 805 VA guaranteed............................................................... 3,191 3,147 2,703 188 20 1 ,401 1 ,094 488 Other................................................................................... 64,933 64,846 46,503 2,693 766 16,982 26,061 18,430 Multifamily........................................................................... 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................................. 35,236 35,012 33,627 12,911 5,009 13,047 2,661 1 ,609 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........................................ 186,839 182,815 156,354 43,095 13,408 60,473 39,378 30,485 Loans to individuals................................................................... 103,215 102,956 74,465 5,213 1,558 26,751 40,943 28,750 Instalment loans...................................................................... 80,245 80,036 57,443 3,177 835 20,819 32,611 22,802 Passenger automobilies.................................................. 32,849 32,765 22,127 462 161 6,954 14,551 10,722 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....................................... 15,381 15,357 10,831 155 118 3,799 6,758 4,549 Mobile homes................................................................. 8,998 8,996 6,520 97 54 2,353 4,017 2,477 Other................................................................................... 6,383 6,362 4,311 59 64 1 ,447 2,741 2,072 Other instalment loans.................................................... 15,391 15,300 10,602 1 ,242 129 2,853 6,379 4,789 Single-payment loans to individuals............................ 22,970 22,921 17,022 2,036 723 5,932 8,332 5,948 All other loans.............................................................................. 13,906 13,738 12,544 3,631 1,152 5,214 2,546 1,362 Total loans and securities............................................................ 744,542 734,561 568,852 100,348 30,859 211,799 225,845 175,690 Fixed assets—Buildings, furniture, real estate.................. 15,106 15.027 11,374 1,116 448 4,622 5,189 3,732 Investments in subsidiaries not consolidated.................... 1,763 1,739 1 ,723 768 134 752 69 41 Customer acceptances outstanding......................................... 10,857 10,648 10,364 5,629 451 3,912 372 493 Other assets......................................................................................... 19,678 19,022 16,629 5,104 872 7,132 3,520 3,049 Total assets.......................................................................................... 920,001 906,385 715,950 140,569 37,581 268,343 269,457 204,051 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

JULY 1975 □ 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.............................................................................. 315,825 312,858 248,477 55,556 11,307 88,451 93,163 67,348 Mutual savings banks............................................................... 1,363 1,197 1,121 559 3 190 370 242 Other individuals, partnerships, and corporations. . 235,802 234,808 180,819 30,816 7,538 67,111 75,354 54,982 U.S. Government........................................................................ 4,807 4,799 3,183 226 36 815 2,106 1 ,624 States and political subdivisions.......................................... 18,615 18,485 13,126 666 218 3,889 8,354 5,489 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........................................ 10,993 10,298 8,432 2,833 251 2,912 2,436 2,562 Time and savings deposits........................................................... 432,516 428,855 327,410 51,799 17,491 119,486 138,634 105,106 Savings deposits........................................................................... 135,608 135,364 97,596 6,061 2,060 34,273 55,202 38,012 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.. 221,752 219,947 170,180 30,329 11,996 62,467 65,388 51,572 U.S. Government........................................................................ 477 477 352 39 6 146 160 125 States and political subdivisions.......................................... 50,110 49,939 37,065 2,060 1,307 16,494 17,205 13,046 Foreign governments, central banks, etc........................ 12,683 12,049 11,891 7,369 1,315 3,174 32 792 Commercial banks in United States................................. 8,611 8,417 7,858 4,119 775 2,546 418 753 Banks in foreign countries..................................................... 2,406 1 ,814 1,742 1,561 29 145 7 663 Total deposits..................................................................................... 748,341 741,713 575,887 107,355 28,799 207,936 231,797 172,454 Federal funds purchased and securities sold under agreements to repurchase....................................................... 52,326 51,141 48,351 10,048 4,295 26,357 7,651 3,976 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.................................................................................. 28,788 25,047 20,426 4,397 1,346 8,029 6,653 8,362 Total liabilities................................................................................... 847,652 834,687 660,614 129,603 34,977 248,927 247,107 187,038 Minority interest in consolidated subsidiaries.................. 6 5 2 2 3 Total reserves on loans/securities............................................ 8,689 8,650 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 25,223 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............................................................................................ 920,001 906,385 715,950 140,569 37,581 268,343 269,457 204,051 Demand deposits adjusted 3........................................................ 228,424 225,893 165,881 26,717 6,117 54,535 78,512 62,542 Average total deposits (past 15 days)................................... 724,464 717,857 555,930 103,014 27,229 199,287 226,400 168,534 Average total loans (past 15 days).......................................... 519,219 510,838 401,694 81,665 24,493 150,485 145,050 117,525 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 Total securities held................................................................... 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 U.S. Treasury...................................................................... 5.6 5.7 5.1 3.1 3.6 4.6 6.8 7.6 States and political subdivisions................................ 10.5 10.7 9.9 4.9 6.5 9.0 13.9 12.8 All other portfolio securities........................................ 4.1 4.1 3.3 1.5 2.6 2.6 5.1 7.0 Other loans and Federal funds sold................................. 59.7 59.7 60.0 59.7 67.2 61.3 57.9 58.7 All other assets............................................................................. 5.2 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 Reserves for loans and securities........................................ .9 1.0 1.0 1.1 1.3 1.0 .9 .8 Equity capital—Total................................................................ 6.5 6.5 6.3 6.1 5.5 5.6 7.1 7.1 Total capital accounts.............................................................. 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 □ JULY 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities To nonbank Total involving— financial loans institutions Wednesday and To brokers To invest­ To Com­ and dealers others ments com­ To mer­ Agri­ Total mer­ U.S. Other others Total cial cul­ Real cial Treas­ se­ and tural Per s. 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 June 5....................... 390,965 18,836 15,454 2,014 686 682 287,657 120,766 3,821 1,542 4,933 126 2,694 9,461 20,410 57,694 12....................... 390,055 16,972 13,913 1,985 512 562 287,451 121,519 3,834 602 5,002 130 2,689 9,321 20,312 57,923 19....................... 390,569 15,321 13,213 905 581 622 290,510 123,004 3,962 674 5,102 130 2,667 9,906 20,807 58,195 26....................... 391,119 16,187 14,070 932 552 633 291,481 123,612 3,950 511 4,699 128 2,670 9,867 20,928 58,296 1975 May 7................ 391,578 17,292 14,163 1,631 868 630 284,748 125,158 3,432 1,066 2,646 78 2,342 9,356 20,224 59,201 14....................... 389,853 17,142 14,024 1 ,555 842 721 283,112 124,398 3,422 949 2.645 81 2,333 9,090 20,152 59,211 21....................... 388,845 16,201 13,045 1,755 828 573 282,635 123,590 3,395 894 2,926 79 2,351 9,105 20,142 59,231 28....................... 389,317 17,589 13,982 2,276 720 611 281,795 122,729 3,397 735 3,177 77 2,338 9,272 20.189 59,293 June 4*............................... 392,798 19,635 16,049 2,256 770 560 282,872 122,004 3,390 1 ,897 3,507 84 2.336 9,256 20,134 59,245 1 1 8 1* * ........... 3 39 9 6 5 , , 1 8 9 8 1 0 2 1 1 9 , , 3 7 0 5 1 8 1 1 5 5 , , 7 23 3 4 4 4 2 , , 5 5 8 7 8 4 8 8 8 9 5 3 5 5 9 57 4 2 2 8 8 2 2 , , 2 5 2 1 2 9 1 1 2 2 1 2 , , 9 1 6 5 1 5 3 3, , 4 4 3 0 1 4 1 1 , , 9 3 6 0 1 6 3 3 , , 3 3 3 9 5 8 8 8 5 3 2 2 . , 3 3 3 4 7 9 9 9 , , 0 4 2 2 8 6 2 2 0 0 , . 3 1 9 9 5 0 5 5 9 9 , , 2 2 5 2 1 8 25*.................... 390,134 16,114 12,603 2,197 681 633 281,582 121,919 3,458 605 3.645 114 2,340 9,419 20,370 59,189 New York City 1974 June 1 5 2. . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . 8 8 5 5 , , 2 7 1 8 9 4 1 1 , , 7 7 0 9 7 8 1 1 , , 6 7 7 2 7 0 32 2318 6 68 9 , , 9 3 3 2 1 6 3 3 5 4, , 7 1 3 5 5 6 1 1 3 4 8 6 1,4 5 4 3 5 8 2 2 , , 9 9 8 7 9 0 5 56 5 5 8 3 3, , 2 1 4 8 1 5 7 7 , , 3 3 0 1 3 6 6 6 , , 7 7 6 1 7 3 19....................... 86,289 1 ,257 1,144 104 70,145 35,875 145 535 3,064 562 3,538 7,605 6.832 26....................... 87,299 2,233 2,163 64 70,641 36,426 138 423 2,768 562 3,487 7,624 6.832 1975 May 7....................... 87,135 1,604 1,446 62 70,750 38,308 100 886 1,843 457 3,207 7,832 7,416 14....................... 86,730 1 ,605 1,444 143 69,938 37,975 98 809 1,778 451 3,100 7,822 7,401 21....................... 8876,,001718 1,804 1,662 118 69,833 37,639 92 813 2,015 469 098 7,809 7,413 28....................... 968 773 171 69,670 37,355 91 588 2,215 460 242 7,874 7,442 June 1 1 4 1 8 * * * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 8 8 7 7 8 , , , 1 6 7 2 5 2 8 2 4 1 1 1 , , , 1 1 2 0 5 9 7 8 4 1 1 , , 0 09 5 08 8 02 149 110 7 25 2 0 7 7 7 0 0 0 , , , 5 3 2 0 5 8 9 3 7 3 3 3 7 7 7 , , . 1 2 3 6 5 3 5 5 0 8 8 8 2 2 4 1 1 1 , , , 6 0 6 0 9 4 5 9 8 2 2 2, , , 3 4 2 4 0 6 1 5 7 4 4 4 5 6 7 7 6 8 , , , 1 3 2 1 2 0 7 8 4 7 7 7 , , , 9 7 8 0 7 3 8 6 0 7 7 7 , . , 4 4 4 3 2 4 8 2 0 25*.................... 87,271 691 458 154 69,986 37.331 83 516 2,575 470 ,380 7,863 7.422 Outside New York City 1974 June 2 1 1 5 6 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 0 0 0 0 4 5 4 4 , , , , 2 7 2 4 7 4 8 8 1 6 0 0 1 1 1 1 5 3 7 4 , , , , 2 0 0 9 6 3 6 5 5 8 4 4 1 1 1 1 3 2 1 2 , , , , 7 2 9 06 0 3 3 7 9 4 6 2 1 , , 0 9 9 8 0 7 2 9 6 6 6 6 6 5 5 5 8 5 5 1 1 2 2 4 6 5 5 5 4 1 6 4 1 8 9 4 2 2 2 2 1 2 1 2 8 0 8 0 , , , , 3 3 5 8 3 6 2 4 1 5 0 0 8 8 8 8 6 6 7 7 , , , , 0 3 1 1 3 6 2 8 1 3 9 6 3 3 3 3 , , , , 6 6 8 8 8 8 1 1 3 7 8 2 1 9 6 3 7 4 9 2 2 1 1 , , , , 9 0 0 9 3 3 3 4 1 2 8 4 1 1 1 90 0 0 82 2 2 2 2 2 2 , , , , 1 1 1 1 0 3 0 2 5 6 8 4 6 6 6 6 , , , , 2 3 1 3 2 3 6 8 6 8 0 0 1 1 1 1 3 2 3 3 , , , , 1 2 9 3 0 0 0 9 7 2 4 6 5 5 5 5 0 1 1 1 , , , , 9 3 4 1 8 6 6 5 1 3 6 4 1975 May 7..................... 304,443 15,688 12,717 1,535 868 568 213,998 86,850 3,332 180 803 1,885 6,149 12,392 51,785 14....................... 303,123 15,537 12,580 1.537 842 578 213,174 86,423 3,324 140 867 1,882 5,990 12,330 51.810 21...................... 301,767 14,397 11,383 1 ,731 828 455 212,802 85,951 3,303 81 911 1,882 6,007 12,333 51,818 28...................... 303,306 16,621 13,209 2,252 720 440 212,125 85,374 3.306 147 962 1.878 6,030 12,315 51,851 June 4*.................. 305,670 18,441 14,991 2,225 770 455 212,363 84,839 3.306 249 1,102 1.879 6,052 12,304 51,807 11*.................. 308,228 20,194 14,252 4,583 885 474 211,869 84,706 3,322 356 1,068 1.871 5,911 12,412 51.811 18*.................... 307,467 18,500 14,734 2.537 744 485 212,232 84,825 3,349 207 1,057 1.871 6,098 12,489 51,806 25*.................. 302,863 15,423 12,145 2,118 681 479 211,596 84,588 3,375 89 1,070 1,870 6,039 12,507 51,767 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ WEEKLY REPORTING BANKS A 19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer­ Notes and bonds cial banks maturing— Obligations Other bonds, of States corp. stocks, Wednesday and and Con­ For­ political securities sumer eign All Certif­ subdivisions instal­ govts. other Total 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 rants3 other partici­ others pation* Large banks— Total 1974 4,013 6,452 33,565 1,859 20,321 22,316 2,727 3,665 11,949 3,975 62,156 7,505 40,931 2,397 11,323 ....................June 5 3,978 6,225 33,676 1,832 20,408 22,123 2,485 3,764 11,882 3,992 63,509 8,007 41,405 2,508 11,589 . ..............................12 3,857 6,275 33,797 1,881 20,253 21,801 2,218 3,728 11,885 3,970 62,937 7,511 41,332 2,519 11,575 ................................19 3,959 6,401 33,923 1,966 20,571 20,984 1,531 3,666 11,845 3,942 63,127 7,384 41,311 2,525 11,907 ................................26 1975 2,657 5,387 33,833 1,435 17,933 29,314 5,953 4,034 15,875 3,452 60,224 6,107 39,620 2,400 12,097 ..................May 7 2,509 5,271 33,851 1,229 17,971 29,511 6,052 4,151 15,864 3,444 60,088 5,908 39,367 2,433 12,380 ................................14 2,467 5,289 33,821 1,328 18,017 29,794 5,891 4,211 16,077 3,615 60,215 6,039 39,549 2,451 12,176 ................................21 2,297 5,377 33,838 1,348 17,728 30,235 5,769 4,296 16,589 3,581 59,698 5,919 39,501 2,415 11,863 ................................28 2 2 2, , , 3 6 4 9 1 6 5 4 7 5 5 5 , , , 1 2 2 5 3 9 5 5 4 3 3 33 3 3 , , , 7 7 7 9 9 7 3 5 0 1 1 1 , , , 3 3 2 4 3 6 1 3 7 1 1 1 8 7 7 , , , 1 8 9 3 6 7 5 7 6 3 3 3 2 2 0 , , , 7 1 5 2 9 5 3 0 0 7 6 7, , ,9 6 62 6 7 8 9 5 4 4 4 , , , 8 5 6 8 9 3 6 0 2 1 1 1 5 6 6 , , , 9 4 4 5 8 4 1 5 2 3 3 3 , , , 4 4 3 2 1 6 5 6 4 6 6 5 1 0 9 , , , 1 7 2 9 0 0 1 1 7 6 6 5 , , , 5 0 8 1 5 6 9 9 7 4 3 3 0 9 9 , , , 1 7 5 2 6 9 1 8 3 2 2 2 , , , 4 4 3 2 2 9 9 2 6 1 1 1 1 1 2 , , , 8 0 9 5 8 9 3 2 0 . ... . .. . ... . ... . .. . ... . ... . ... . .. . ... . .. . .J . .u . . . .n . .e . . . . 1 18 14 ^ * p > 2,420 5,134 33,866 1,314 17,789 31,934 7,533 4,781 16,353 3,267 60,504 6,480 39,644 2,408 11,972 .................. 25* New York City 1974 1,509 3,002 2,400 746 4,519 3,644 88 395 1,911 1,250 10,451 2,240 5,582 554 2,075 ..................June 5 1,620 2,810 2,420 771 4,639 3,907 263 451 1,932 1,261 11,239 2,692 5,770 607 2,170 ................................12 1,528 2,929 2,436 792 4,276 3,809 141 432 1,958 1,278 11,078 2,472 5,796 603 2,207 ................................19 1,595 2,907 2,444 789 4,620 3,355 244 378 1,949 1,272 11,070 2,371 5,787 635 2,277 ................................26 1975 1,293 2,533 2,577 676 3,603 5,889 1,223 430 3,293 943 8,892 1,562 4,689 516 2,125 ..................May 7 1,221 2,399 2,580 553 3,732 6,311 1,473 535 3,283 1,020 8,876 1,540 4,637 516 2,183 ................................14 1,168 2,383 2,586 608 3,723 6,418 1,323 553 3,530 1,012 9,023 1,609 4,777 514 2,123 ................................21 1,097 2,447 2,575 617 3,649 6,519 1,175 599 3,754 991 8,854 1,512 4,766 514 2,062 ................................28 1,086 2,360 2,568 601 3,645 6,588 1,559 555 3,548 926 8,837 1,442 4,835 519 2,041 ..................June 4p 1,103 2,303 2,577 599 3,743 6,905 1,632 605 3,756 912 9,287 1,688 4,978 526 2,095 ................................11 p 1,072 2,246 2,583 501 3,881 7,199 1,717 658 3,826 998 9,980 2,084 5,227 537 2,132 ................................18*> 1,096 2,278 2,590 538 3,795 7,030 1,677 665 3,787 901 9,564 1,934 4,985 532 2,113 ................................25*> Outside New York City 1974 2,504 3,450 31,165 1,113 15,802 18,672 2,639 3,270 10,038 2,725 51,705 5,265 35,349 1,843 9,248 .June 2,358 3,415 31,256 1,061 15,769 18,216 2,222 3,313 9,950 2,731 52,270 5,315 35,635 1,901 9,419 2,329 3,346 31,361 1,089 15,977 17,992 2,077 3,296 9,927 2,692 51,859 5,039 35,536 1,916 9,368 2.364 3,494 31,479 1,177 15,951 17,629 1,775 3,288 9,896 2,670 52,057 5,013 35,524 1,890 9,630 1975 1.364 2,854 31,256 759 14.330 23,425 4,730 3,604 12,582 2,509 51,332 4.545 34,931 1.884 9,972 , .May 1,288 2,872 31,271 676 14,239 23,200 4,579 3,616 12,581 2,424 51,212 4,368 34,730 1,917 10,197 1,299 2,906 31,235 720 14,294 23,376 4,568 3,658 12,547 2,603 51,192 4,430 34,772 1,937 10,053 , 1,200 2,930 31,263 731 14,079 23,716 4,594 3,697 12,835 2,590 50,844 4,407 34,735 1,901 9,801 1 1 1 . , . 5 3 3 2 2 6 3 8 4 2 2 2 , , , 9 9 9 0 3 3 8 5 2 3 3 3 1 1 1 , , , 1 2 2 9 2 1 3 5 2 7 7 7 6 3 4 6 4 0 1 1 1 4 4 4. , , 3 1 2 3 5 2 1 6 2 2 2 2 5 4 5 , , , 2 0 5 4 0 2 5 2 4 6 6 5 , , , 2 0 0 5 3 6 8 9 7 4 4 4 , , , 0 0 2 4 2 2 1 7 2 1 1 1 2 2 2 , , , 4 7 6 2 0 1 9 3 6 2 2 2 , , , 4 4 4 2 8 5 8 9 2 5 5 5 1 0 0 , , , 2 9 8 1 6 2 1 4 0 4 4 4 , , , 3 4 4 7 3 1 9 5 7 3 3 3 4 4 4 , , , 9 7 7 4 4 5 1 3 8 1 1 1 . , , 8 9 8 0 8 7 3 5 7 9 9 9 , , , 8 9 8 9 5 1 5 0 2 . . , .J . .u . . . .n . . . .e . . . . 1 141 8 * p p 1.324 2,856 31,276 776 13,994 24,904 5,856 4,116 12,566 2,366 50,914,8076 4.546 34,659 9,859 . .............25*> For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ORTING BANKS □ JULY 1975 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (In millions of dollars) Deposits Demand Bal­ Invest­ Cur­ ances ments Total rency with in sub­ Other assets/ and do­ sidiar­ assets total coin mestic ies not liabil­ States banks consol­ ities and idated polit­ IPC ical Vsub­ divi­ ?S sions 4,052 12,134 1,603 24,875 487,199 157,882 111,477 6,024 687 4,494 10,526 1 ,586 25,001 488,774 156,244 113,717 5,790 671 4,566 11,076 1,602 24,336 485,606 159,298 112,051 5,909 629 4,684 10,994 1,694 25,084 489,024 158,475 112,202 6,733 651 4,303 12,011 1.741 35,432 496,382 111 ,552 6,106 872 4,684 11,789 1.741 35,186 499,452 116,568 5,949 674 4,655 11,416 1,765 34,369 497,307 113,372 5,953 676 4,949 11,765 1,735 35,697 502,578 117,508 5,925 767 4,291 11,832 1 ,730 37,553 507,419 116,625 5,991 771 4,734 11,823 1,735 37,372 505,230 118,749 5,933 728 4,711 12,261 1,739 36,389 509,194 119,008 6,130 742 4,921 11,869 1,761 36,766 502,491 161, 115,656 7,115 646 494 6,207 744 7,754 117,653 23,668 368 359 508 4,985 725 7,953 119,865 24,525 266 342 513 5,170 736 7,341 116,716 23,997 330 319 514 5,127 740 7,597 120,987 25,306 459 332 511 5,242 798 12,109 124,044 24,546 338 515 507 4,988 807 11,809 124,013 26,364 438 353 521 4,629 807 11 ,175 123,092 25,408 383 357 538 4,865 784 12,167 125,126 26,576 355 433 505 4,627 788 13,172 125,786 25,333 366 416 511 5,003 789 13,006 125,793 25,802 454 387 517 4,909 795 12,195 126,538 26,713 310 382 539 5,444 795 12,223 126,598 47,631 26,073 1,118 329 3,558 5,927 859 17,121 369,546 87,809 5,656 328 3,986 5,541 861 17,048 368,909 89,192 5,524 329 4,053 5,906 866 16,995 368,890 88,054 5,579 310 4,170 5,867 954 17,487 368,037 86,896 6,274 319 3,792 6,769 943 23,323 372,338 87,006 5,768 357 4,177 6,801 934 23,377 375,439 113,025 90,204 5,511 321 4,134 6,787 958 23,194 374,215 110,865 87,964 5.570 319 4,411 6,900 951 23,530 377,452 90,932 5.570 334 3,786 7,205 942 24,381 381,633 91,292 5,625 355 4,223 6,820 946 24,366 379,437 92,947 5,479 341 4,194 7,352 944 24,194 382,656 92,295 5,820 360 4,382 6,425 966 24,543 375,893 113,765 89,583 5,997 317 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Fed­ eral Other Foreign IPC funds liabili­ Certi­ States pur­ ties, Wednesday fied and Do­ chased, etc. 8 and polit­ mes­ For­ etc. 7 F.R. Com­ offi­ 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 1, , 4 8 3 9 1 9 5 4, , 7 0 2 5 9 6 67,,696464 2 20 0 9 9, , 4 8 5 9 2 4 5 57 7 , , 8 9 5 2 3 6 1 1 1 11 1 , , 5 1 9 6 5 7 2 2 4 4 , , 9 6 9 3 5 5 6 6 , , 5 6 1 3 4 0 8 8 , , 0 3 6 4 5 5 5 5 1 4 , , 9 9 9 2 8 9 2 2 , , 0 6 9 5 2 8 5 6 , ,3 9 1 7 9 0 2 2 0 1 , , 8 2 6 6 7 6 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. J .. u ... n .. e .. ...12 5 11,,322600 4 4 , , 6 7 8 59 2 6 6 , , 6 8 3 7 7 3 2 2 0 1 9 0, ,4 5 2 5 3 8 5 57 7 , , 8 7 8 8 6 0 111111,,188098 2 2 4 4 , , 4 3 1 6 0 4 6 6 , , 7 9 8 4 3 7 8 8 , ,5 4 4 6 2 0 5 4 1 9 , , 3 4 2 7 5 4 2 1 , , 3 9 4 8 1 8 6 6, , 3 26 5 7 8 2 2 1 1 , , 0 86 2 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 9 6 1975 1,300 5,014 6,297 223,743 62,726 113,310 25,299 8,172 12,345 49,408 2 3,670 23,152 ....................May 7 1,025 5,013 5,565 225,188 63,011 114,525 25,294 8,054 12,467 49,684 5 3,674 23,021 ...................................14 1,062 4,670 6,362 225,318 63,392 114,059 25,552 88,,001912 12,453 49,601 711 3,584 23,107 ...................................21 1,208 4,681 7,172 224,647 63,714 113,410 25,412 12,541 49,060 459 3,254 23,080 .................................28 1 1 1 , , , 2 2 1 6 4 97 2 6 4 4 4 , , , 4 7 7 3 4 2 1 5 9 7 7 6 , , , 2 1 8 5 7 3 7 9 2 2 2 2 2 2 2 3 4 4 , , , 2 0 7 8 5 7 3 3 6 6 6 6 4 4 4 , , , 6 3 8 2 3 7 9 8 4 1 1 11 1 1 2 3 3 , , , 1 1 4 3 0 5 5 7 8 2 2 2 4 4 4 , , , 9 5 1 0 5 3 5 9 0 7 7 7, , , 8 9 9 8 8 9 5 7 2 1 1 1 2 2 2. , , 5 5 4 9 5 5 5 3 0 4 5 5 9 1 2 , , , 5 9 2 2 6 1 7 0 0 4 3 3 4 8 0 9 0 3 3 3 , , , 2 4 2 3 0 2 6 6 4 2 2 2 3 3 2 , , , 5 3 9 1 1 0 9 7 9 . . .. . .. . ... . ... . ... . .. . ... . ... . ... . .. . ... . ... . J. . . . u. . n. . . . e. . . . 1 1 1 8 4 * * * 1,335 4,667 7,366 223,256 64,954 112,676 23,771 7,802 12.595 50,163 972 3,190 22,601 ...................................25* New York City 1974 1,652 3,800 4,293 40,521 5,073 24,561 1,808 4,216 4,553 11,678 2,571 7,424 ....................June 5 1,226 3,440 3,381 40,489 5.056 24,544 1,601 4,265 4,667 14,966 300 2,424 7,270 ...................................12 1 1 , , 1 0 4 1 5 9 3 3 , , 4 43 9 5 7 3 3 , , 3 7 9 03 6 4 4 0 1 , , 4 2 6 6 8 4 5 5 . ,0 0 3 5 7 6 2 2 4 4 , , 3 7 1 3 0 4 1 1, , 7 6 1 2 2 0 4 4 , , 4 3 5 3 3 9 4 4 , , 7 8 5 8 7 2 1 1 1 3 , , 5 2 3 5 3 3 '220 2 2 , , 6 5 1 7 5 9 7 7 , , 0 73 8 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 19 6 1975 1,093 3,691 2,783 45,684 5,580 25,957 1,278 3,685 7,796 13,454 1,420 8,324 ....................May 7 844 3,651 2,392 45,721 5,638 25,978 1,251 3,639 7,876 13,600 1,433 8,327 ...................................14 882 3,409 3,027 45,209 5,678 25,562 1,264 3,618 7,778 13,199 685 1,400 8,326 ...................................21 1,024 3,330 3,773 44,766 5,718 25,213 1,246 3,602 7,894 13,781 62 1,273 8,060 ...................................28 1,015 3,422 3,668 44,399 5,815 24,939 1,244 3,581 7,807 14,396 430 1,406 8,080 ....................June 4* 1,0 9 1 9 8 5 3 3, , 3 2 8 2 7 0 3 3 , , 3 6 0 5 7 2 4 4 4 4 , , 6 0 8 7 3 9 5 5 , , 8 9 8 2 5 6 2 2 4 4 , , 9 5 8 3 2 0 1 1, , 2 3 9 0 7 4 3 3 , , 5 4 2 7 1 4 7 7, , 8 9 7 4 1 7 1 1 4 5 , , 3 2 3 4 9 8 340 1 1 , , 2 3 9 03 2 7 8, , 2 8 9 9 1 2 . . . . .. . .. . . . .. . .. . .. . . . .. . .. . .. . . . .. . .. . .. . . . .. . .. . .. . . 1 1 8 1 * * 1,095 3,328 3,876 44,232 5,883 24,816 1,262. 3,348 7,963 14,255 680 1,330 7,559 ...................................25* Outside New York City 197 4 247 1,256 3,651 168,931 52,853 86,606 23,187 2,298 3,512 40,320 2,092 3,748 13,842 ....................June 5 205 1,289 3,285 169,405 52,797 87,051 23,034 2,365 3,678 39,963 2,358 3,546 13,597 ...................................12 220115 1 1 , , 2 2 4 6 7 2 3 3 , , 2 1 4 7 1 0 1 1 6 6 8 9 , , 9 2 5 9 5 4 5 5 2 2 , , 7 8 4 3 3 0 8 8 6 7 , , 7 1 9 5 9 4 2 22 2 , , 6 7 5 9 2 0 2 2 , , 4 4 4 9 4 4 3 3 , , 7 6 0 6 3 0 3 3 7 8 , , 9 0 4 7 1 2 21,,192818 3 3, , 7 6 7 5 9 2 1 1 3 4 , , 9 1 4 2 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 19 6 1975 207 1.323 3,514 178,059 57,146 87,353 24,021 4,487 4,549 35,954 2 2,250 14,828 ....................May 7 181 1,362 3,173 179,467 57,373 88,547 24,043 4,415 4,591 36,084 5 2,241 14,694 ...................................14 180 1,261 3,335 180,109 57,714 88,497 24,288 4,474 4,675 36,402 26 2,184 14,781 ;................................21 184 1,351 3,399 179,881 57,996 88,197 24,166 4,409 4.647 35,279 397 1,981 15,020 ...................................28 2,000 224072 11,.231213 3 3, , 5 4 8 8 9 0 1 18 7 0 9 , , 0 8 9 8 3 4 5 5 8 8 , , 5 7 2 4 3 4 8 8 8 8 , , 4 1 7 68 6 2 2 3 3 , , 6 2 6 5 1 5 4 4. , 4 4 1 6 1 6 4 4 , . 6 6 4 4 3 8 3 3 5 7 , , 6 1 2 3 1 1 89 1,921 1 1 5 5 , , 2 2 3 2 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J ... u .. n ... e .. ..11 4 * * 228 1,342 3,572 178,974 58,948 87,605 22,833 4.411 4,682 36,962 1,944 15,017 ................................18* 240 1,339 3,490 179,024 59,071 87,860 22,509 4,454 4,632 35,908 ’292 1,860 15,042 ................................25* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ JULY 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 deposits11 banks Loans ities (gross) ments deposits to ad­ (gross) ad­ their justed9 ad­ justed10 Issued Issued Issued Issued foreign justed9 to to Total to to branches IPC’s others IPC’s others Large banks— Total 1974 June 5......................... 5,052 66 33,072 287,026 371,498 100,788 79,160 55,641 23,519 2,813 12......................... 5,061 61 33,090 286,532 372,164 100,558 79,647 55,969 23,678 2,410 19......................... 5,060 61 33,006 288,761 373,499 99,025 79,154 55,347 23,807 2,503 26......................... 5,065 61 32,978 289,639 373,750 100,529 80,174 55,981 24,193 3,388 1975 May 7......................... 5,723 68 35,046 285,220 374,758 101,119 83,810 55,222 28,588 36,368 18,752 17,616 2,322 14......................... 5,721 68 34,982 283,721 373,320 101,773 84,892 56,233 28,659 36,328 18,799 17,529 2,098 21......................... 5,711 71 34,895 283,324 373,333 101,633 84,258 55,629 28,629 36,442 18,844 17,598 3,212 28......................... 5,727 68 34,937 283,105 373,038 101,411 83,474 54,987 28,487 36,146 18,645 17,501 2,613 June 1 U 4 8 p * * . . ... . ... . ... . .. . ... . ... . ... . .. . ... . ... . ... . .. . . 5 5 5 , , , 7 7 7 5 7 8 4 7 6 6 6 6 8 8 8 3 3 35 5 5 , , , 1 1 2 3 7 3 1 9 4 2 2 2 8 8 8 4 5 3 , , , 1 8 8 4 2 4 8 2 4 3 3 3 7 7 7 8 4 8 , , , 1 1 0 7 3 6 9 5 2 1 1 1 0 0 0 1 4 4 , , , 7 9 3 1 7 6 5 6 2 8 8 8 1 2 3 , , , 4 6 1 6 6 2 3 4 2 5 5 5 4 3 4 , , , 5 5 8 5 6 4 8 2 2 2 2 2 7 8 8 , , , 1 9 2 2 0 6 1 6 0 3 3 3 4 5 5 , , , 5 2 4 8 1 8 1 4 7 1 1 1 8 8 8 , , , 0 2 4 3 4 8 9 5 6 1 1 1 6 6 7 , , , 9 5 0 2 4 4 8 2 2 2 2 2 , , , 5 3 5 3 6 4 3 8 5 25p...................... 5,722 68 35,123 282,673 375,111 103,732 81,708 54,000 27,708 34,339 17,962 16,377 1,891 New York City 1974 June 5......................... 1,419 8,648 67,895 81,990 23,328 25,528 17,379 8,149 1,405 12......................... 1,423 8,633 67,341 82,487 21,756 25,437 17,352 8,085 1,192 19......................... 1,421 8,613 68,730 83,617 21,869 25,393 17,058 8,335 1,236 26......................... 1,424 8,600 69,116 83,541 22,643 25,980 17,372 8,608 1,893 1975 May 7......................... 1,651 9,194 69,615 84,396 22,383 29,216 18,521 10,695 ,397 4.990 3,407 1,606 14......................... 1,656 9,192 68,878 84,065 22,093 29,243 18,538 10,705 ,369 4.991 3,378 1,504 21......................... 1,657 9,172 68,807 84,248 22,722 28,660 18,116 10,544 ,351 4,971 3,380 2,228 28......................... 1,666 9,192 68,768 84,141 23,050 28,228 17,812 10,416 ,273 4,912 3,361 1,682 June 1 1 4 1 8 * * * . . .. . .. . . . .. . . . .. . .. . . . .. . . . .. . . . .. . . . .. . .. . . . .. . . . .. . .. . 1 1 1 , , , 6 7 6 9 7 0 5 9 5 9 9 9 , , , 2 2 2 5 6 6 1 4 0 6 6 6 9 9 9 , , , 4 3 5 7 5 7 3 9 5 8 8 8 4 6 5 , , ,9 6 56 5 8 7 4 2 2 2 2 2 3 2 , , , 0 0 0 3 2 7 8 9 7 2 2 27 7 7 , , , 4 8 9 0 1 2 8 5 2 1 1 1 7 7 7 , , , 1 5 5 1 0 5 9 7 6 1 1 1 0 0 0 , , , 2 3 3 8 0 6 9 8 6 , ,, 1 21 3 72 1 90 4 4 4, , , 8 8 8 1 6 9 3 7 5 3 3 3 , , , 3 2 3 0 8 6 7 4 4 1 11 , ,, 6 68 6 52 3 60 25*...................... 1,664 9,247 69,123 85,717 22,787 27,596 17,350 10,246 ,083 4,816 3,267 1,225 Outside New York City 1974 June 5......................... 3,633 66 24,424 219,131 289,508 77,460 53,632 38,262 15,370 1,408 12......................... 3,638 61 24,457 219,191 289,677 78,802 54,210 38,617 15,593 1,218 19......................... 3,639 61 24,393 220,031 289,882 77,156 53,761 38,289 15,472 1,267 26......................... 3,641 61 24,378 220,523 290,209 77,886 54,194 38,609 15,585 1,495 1975 May 7......................... 4,072 68 25,852 215,605 290,362 78,736 54,594 36,701 17.893 27,971 13,762 14,209 716 14......................... 4,065 68 25,790 214,843 289,255 79,680 55,649 37,695 17,954 27,959 13,808 14,151 594 21......................... 4,054 71 25,723 214,517 289,085 78,911 55,598 37,513 18,085 28,091 13,873 14,218 984 28......................... 4,061 68 25,745 214,337 288,897 78,361 55,246 37,175 18,071 27,873 13,733 14,140 931 June 4*....................... 4,082 68 25,919 214,285 289,151 79,885 54,848 37,035 17,813 27,356 13,578 13,778 870 11*...................... 4,081 68 25,970 216,447 292,612 82,677 55,200 37,306 17.894 26,935 13,391 13,544 689 18*...................... 4,075 68 25,880 214,675 291,410 81,347 54,056 36,439 17,617 26,461 13,226 13,235 748 25*....................... 4,058 68 25,876 213,550 289,394 80,945 54,112 36,650 17,462 26,256 13,146 13,110 666 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stocks. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. 12 All other time deposits issued in denominations of $100,000 or more (not included in large negotiable CD’s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 o 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 1975 1974 June June June June May 1st 2nd 25 18 11 4 28 June May Apr. II I IV half half Durable goods manufacturing: Primary metals.......................................... 2,021 1,997 1,970 1,942 2,005 16 -80 41 -23 39 77 16 140 Machinery.................................................... 7,423 7,521 7,579 7,658 7,912 -489 -201 25 -665 -653 -127 -1,318 222 Transportation equipment.................. 3,539 3,551 3,543 3,502 3,587 -48 -53 -165 -266 -7 365 -273 705 Other fabricated metal products... 2,722 2,750 2,715 2,716 2,747 -25 -138 -45 -208 19 -178 -189 75 Other durable goods............................... 4,147 4,233 4,269 4,281 4,293 -146 -155 10 -291 -421 -265 -712 247 Nondurable goods manufacturing: Food, liquor, and tobacco.................. 3,309 3,342 3,365 3,385 3,550 -241 -104 -175 -520 -1,092 484 -1,612 984 Textiles, apparel, and leather............. 3,223 3,258 3,257 3,250 3,241 -18 -64 -54 -136 -151 -725 -287 -618 Petroleum refining................................... 2,478 2,426 2,444 2,418 2,388 90 -40 229 279 -51 473 228 967 Chemicals and rubber............................ 3,120 3,228 3,167 3,195 3,244 -124 -73 -132 -329 67 -55 -262 256 Other nondurable goods....................... 2,226 2,227 2,197 2,174 2,166 60 -38 -7 15 -295 -135 -280 23 Mining, including crude petroleum and natural gas................................... 4,865 4,852 4,825 4,771 4,796 69 -59 90 100 -272 556 -172 846 Trade: Commodity dealers...................... 1,106 1,067 1,031 1,053 1,159 -53 -172 -98 -323 -648 703 -971 508 Other wholesale.............................. 5,632 5,608 5,565 5,591 5,727 -95 -107 -341 -543 -553 349 -1,096 484 Retail.................................................... 6,326 6,333 6,311 6,403 6,462 -136 -73 21 -188 -193 -246 -381 -465 Transportation................................................ 6,065 6,095 5,999 6,010 6,045 20 -164 -27 -171 -150 261 -321 283 Communication.............................................. 2,161 2,139 2,206 2,207 2,215 -54 -91 176 31 -369 90 -338 -2 Other public utilities.................................... 7,193 7,204 7,248 7,274 7,270 -77 -214 -116 -407 -1,018 609 -1,425 1,697 Construction..................................................... 5,576 5,593 5,561 5,578 5,586 -10 -32 -24 -66 -460 -276 -526 -45 Services................................................................. 10,858 10,915 10,858 10,878 10,841 17 -170 -245 -398 -698 171 -1,096 304 All other domestic loans............................ 9,771 9,697 9,715 9,609 9,614 157 -426 198 -71 -290 387 -361 744 Bankers acceptances................................... 2,196 2,105 2,240 2,255 2,110 86 21 -143 -36 571 309 535 -56 Foreign commercial and industrial loans........................................................... 4,524 4,482 4,392 4,333 4,308 216 -31 49 234 63 -249 297 -457 Total classified loans.................................... 100,481 100,623 100,457 100,483 101,266 -785 -2,464 -733 -3,982 -6,562 2,578 -10,544 6,842 Comm, paper included in total clas­ sified loans1...................... ............... 240 Total commercial and industrial loans of large commercial banks............. 121,919 122,155 121,961 122,004 122,729 -810 -2,620 -404 -3,834 -6,122 3,468 -9,956 8,263 For notes see table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1975 1974 1975 1974 1975 June May Apr. Mar. Feb. Jan. Dec. Nov. Oct. 1st 25 28 30 26 26 29 31 27 30 II I IV III half Durable goods manufactur­ ing : Primary metals........................ 1,288 1,280 1,323 1,284 1,237 1,249 1,210 1,176 1,107 4 74 77 28 78 Machinery.................................. 3,977 4,269 4,302 4,071 4,117 4,138 4,145 4,049 3,970 -94 -74 249 610 -168 Transportation equipment. 1,740 1,726 1,705 1,672 1,712 1,737 1,673 1,586 1,570 68 -1 138 125 67 Other fabricated metal products................................ 1,222 1,245 1,280 1,312 1,323 1,243 1,197 1,113 1,093 -90 115 131 112 25 Other durable goods............. 2,090 2,122 2,210 2,251 2,256 2,288 2,391 2,361 2,339 -161 -140 123 161 -301 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,514 1,616 1,571 1,561 1,614 1,703 1,763 1,674 1,661 -47 -202 114 78 -249 Textiles, apparel, and leather...................................... 1,095 1,075 1,091 1,158 1,083 1,124 1,145 1,179 1,187 -63 13 -6 23 -50 Petroleum refining................. 1,709 1,611 1,617 1,483 1,458 1,542 1,518 1,272 1,208 226 -35 421 134 191 Chemicals and rubber......... 1,762 1,784 1,814 1,846 1,812 1,839 1,878 1,818 1,820 -84 -32 100 41 -116 Other nondurable goods.. 1,143 1,114 1,126 1,130 1,119 1,221 1,235 1,170 1,187 13 -105 31 33 -92 Mining, including crude pe­ troleum and natural gas. 3,734 3,646 3,626 3,537 3,446 3,523 3,701 3,620 3,468 197 -164 362 209 33 Trade: Commodity dealers.. 148 140 142 150 153 169 155 171 157 -2 -5 16 -2 -7 Other wholesale........... 1,329 1,344 1,387 1,450 1,420 1,472 1,492 1,431 1,488 -121 -42 43 43 -163 Retail................................. 2,136 2,143 2,192 2,283 2,298 2,369 2,594 2,602 2,578 -147 -311 67 99 -458 Transportation.............................. 4,425 4,424 4,492 4,524 4,505 4,455 4,550 4,379 4,370 -99 -26 201 -76 -125 Communication............................ 1,133 1,159 1,148 1,135 1,125 1,158 1,082 1,076 1,047 -2 53 53 -1 51 Other public utilities.................. 4,045 4,047 4,017 4,034 3,870 3,885 3,963 3,987 3,810 11 71 291 229 82 Construction.................................. 2,314 2,291 2,272 2,197 2,191 2,224 2,294 2,281 2,237 117 -97 22 142 20 Services............................................. 5,140 5,246 5,352 5,430 5,370 5,320 5,532 5,417 5,340 -290 -102 182 77 -392 All other domestic loans .... 3,258 3,186 3,210 3,082 3,144 3,079 3,224 3,255 3,215 176 -142 102 105 34 Foreign commercial and in­ dustrial loans....................... 2,594 2,547 2,596 2,528 2,544 2,524 2,457 2,473 2,487 66 71 56 -147 137 Total loans...................................... 47,796 48,015 48,473 48,118 47,797 48,262 49,199 48,090 47,339 -322 -1,081 2,773 2,023 -1,403 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 ail 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 □ JULY 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 in in 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 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 17.9 97.6 60.5 1.4 11.0 188.4 Sept........................................................................................................ 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar........................................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 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 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......................................................................................................... 18.6 111.3 73.2 2.3 10.9 216.3 Weekly reporting banks: 1971—Dec.......................................................................................................... 14.4 58.6 24.6 1.2 5.9 104.8 1972—Dec......................................................................................................... 14.7 64.4 27.1 1.4 6.6 114.3 1973—Dec......................................................................................................... 14.9 66.2 28.0 2.2 6.8 118.1 1974—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 Nov......................................................................................................... 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 15.0 63.3 30.1 2.2 6.5 117.0 14.2 63.1 29.2 2.3 6.2 115.0 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 1............... 69 58 63 69 National member....................... 311 288 265 236 All other member i............... 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-14-A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 Bytype of loail Date Total Commercial Real All and estate other industrial 1975—Mar. 5................................ 4,688 2,741 201 1,746 12................................ 4,721 2,800 201 1,720 19................................ 4,693 2,769 204 1,720 26................................ 4,677 2,791 204 1,682 Apr. 2................................ 4,584 2,714 202 1,668 9................................ 4,587 2,748 201 1,638 16................................ 4,529 2,715 201 1,613 23................................ 4,519 2,704 197 1,618 30................................ 4,587 2,744 204 1,639 May 7................................ 4,582 2,813 199 1,570 1 To bank’s own foreign branches, nonconsolidated non­ 14................................ 4,612 2,808 200 1,604 bank affiliates of the bank, the bank’s holding company (if 21................................ 4,625 2,776 202 1,647 not a bank), and nonconsolidated nonbank subsidiaries of 28................................ 4,665 2,820 201 1,644 the holding company. Note.—Series changed on Aug. 28,1974. For a comparison June 4................................ 4,615 2,829 198 1,588 of the old and new data for that date, see p. 741 of the Oct. 11................................ 4,628 2,849 198 1,581 1974 Bulletin. Revised figures received since Oct. 1974 18................................ 4,631 2,849 198 1,584 that affect that comparison are shown in note 2 to this table 25................................ 4,667 2,895 196 1,576 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di- com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other 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-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 Mar. 50,745 5,342 31,139 14,264 1,738 7,190 18,730 4,773 4,085 688 665 37 13,255 3,845 4,296 10,589 Apr.. 51,552 5,461 32,073 14,018 1,654 6,931 18,727 4,485 3,900 585 1,185 2 13,055 3,690 4,206 10,831 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 □ JULY 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Effective date Rate Effective date Rate Effective date Rate 1974—Apr. 11. 934-98/10- 1974—June 3. lli^B-lie/io- 1974—Oct. 28, 1034-11- 1975--Feb. 3, 8 34-9-914 ■- 10a ll3^ H1/4-- 91/2-934 15, IOb-IOVio- 7. 111/4-1 m ■- IH/2 4, 834-9-914" IOI/4 116/10 10, 834-9f 19. 10-IO1/10- 10. HI/2- Nov. 4 1034-1 1-- 18, 81/2-834--9 10y4m 2 24 1 . . 1 l l 1 l 1 / /4 2 B -1 - 1 l^ 13 B 4 11 10 I ^ I — 1/4 1034— 24, 81/2--834 Apr. 23. 10^B-10VlO 11b Mar. 3, 814-81/2- 24. m/4rn- 25. 111/4b-1134- 14 101^-1034 ■ 5, 81/4-81/2 104/io— 118/10 11 6, 734-81/4-- 101/2 26. 111/2-1134 ■- 18 IO-IOI/2- 81/2 25. IO^-IOVio- 1 18/l0 103/4- 10 7 34-8--814 101/2- 28. 1134i-118/10 19 10-1014- 17, 734-8- 26. IOV10- l01/2- 18, 7i/2-734--8 10%-- July 3, 1134B-118/10. 103/4- 24, 71/2 --734-8 1034-11 12 25, 10-1014- 25, 71/2--734 30. 10%-- 5, 118/10-12> 101/2- 31, 71/4-71/2-- 106/10- 9 12.-1214 734 103^-11 23 1034-12«- Dec. 2 934-10-1014 121/4 -IOI/2- May 20, 714--71/2 May 2. 10Vi-10«/i»- 26, 7-714--714 1034 «-ll Aug. 20 1034-12B 1975—Jan. 9 91/2-10- 3. 106/lfr-1034" 1014 —— June 9, 634-7--714 -11 Sept. 26, 103/4-l 11/2— 101/2 6. 10«/io-1034- 1134-12B 13 91/2-934-10- 11b 101/4- 7. 111 Oct. 7. 1034-11 Vi- 15 91/2-93/4- 10, 11-1 114 b 1134 B-12 io--ioi4 13. 1114b-U4/io 15, 103/4-1114- 20 91/2-9 34--10 17. 1114-11-4/io 111/2- 28 91/2--934-10 -lUAm 1134. 29 91/2--934 20 11^.-1134 21, 1034-1114- 111/2" 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. - 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 May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 Short-term 35 centers........................................ 8.16 9.94 9.57 10.94 9.10 10.73 8.52 10.25 8.18 9.93 7.90 9.73 New York City.......................... 7.88 9.61 9.27 10.82 9.02 10.60 8.55 10.14 7.86 9.74 7.76 9.50 7 Other Northeast..................... 8.37 10.31 10.00 12.07 9.34 11.31 8.63 10.64 8.51 10.09 7.95 9.96 8 North Central......................... 8.00 9.87 9.11 10.55 8.82 10.49 8.32 10.09 7.91 9.85 7.82 9.74 7 Southeast.................................. 8.70 10.24 9.86 10.59 9.40 10.52 8.97 10.21 8.67 10.22 8.15 10.12 8 Southwest................................ 8.34 10.01 9.35 10.36 8.89 10.47 8.32 10.11 8.24 9.83 8.15 9.84 4 West Coast............................... 8.33 9.99 9.72 11.23 9.23 10.75 8.58 10.22 8.23 10.05 8.18 9.84 Revolving credit 35 centers........................................ 7.95 9.20 9.59 11 .03 8.91 10.56 8.58 10.14 8.23 10.18 7.84 8.98 New York City.......................... 7.92 7.84 9.04 10.98 8.94 10.59 8.37 9.98 8.16 9.87 7.88 7.61 7 Other Northeast..................... 7.92 10.83 10.45 12.05 8.66 10.60 8.21 9.97 7.56 10.98 7.91 10.90 8 North Central......................... 8.20 10.32 9.78 11.77 10.01 11 .14 9.24 10.97 8.12 10.24 8.03 10.22 7 Southeast.................................. 8.41 9.77 9.90 10.61 8.61 10.41 8.68 10.35 7.97 9.00 8.40 9.76 8 Southwest................................. 8.40 10.54 9.44 11.61 8.66 11.18 8.51 10.57 8.47 10.75 8.29 10.37 4 West Coast.............................. 7.84 9.52 8.91 10.67 8.54 10.13 8.44 9.77 8.40 10.17 7.69 9.40 Long-term 35 centers......................................... 8.22 10.26 9.94 10.54 9.36 10.55 8.83 10.57 8.47 10.16 8.05 10.21 New York City.......................... 8.38 9.62 9.92 9.27 9.50 10.82 8.69 10.46 9.02 9.78 8.31 9.53 7 Other Northeast..................... 8.53 10.48 9.99 10.99 9.76 10.77 9.41 10.51 7.96 10.20 8.28 10.49 8 North Central......................... 7.22 11.33 9.06 10.32 8.68 10.25 8.64 10.17 8.09 9.45 6.80 11.81 7 Southeast.................................. 8.91 10.42 10.94 9.67 9.14 10.47 7.93 11.11 9.47 11.95 9.50 9.16 8 Southwest................................. 8.47 9.87 10.74 11.99 9.86 10.12 8.37 10.46 8.68 10.09 8.28 9.60 4 West Coast.............................. 8.71 10.07 9.15 8.36 9.20 10.77 9.06 11.28 8.67 10.94 8.66 9.78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ 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 bills6 6-month bills6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1 -year issues 7 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—June............... 11.18 10.96 9.00 10.79 11.93 8.145 7.90 8.232 8.12 8.16 8.71 8.14 July................ 11.93 11.72 9.00 11.88 12.92 7.752 7.55 8.028 7.94 8.04 8.89 8.39 Aug................ 11.79 11.65 9.31 12.08 12.01 8.744 8.96 8.853 9.11 8.88 9.54 8.64 Sept................ 11.36 11.23 9.41 11.06 11.34 8.363 8.06 8.599 8.53 8.52 8.95 8.38 Oct................. 9.55 9.36 9.03 9.34 10.06 7.244 7.46 7.559 7.74 7.59 8.04 7.98 Nov................ 8.95 8.81 8.50 9.03 9.45 7.585 7.47 7.551 7.52 7.29 7.67 7.65 Dec................. 9.18 8.98 8.50 9.19 8.53 7.179 7.15 7.091 7.11 6.79 7.33 7.22 1975—Jan.................. 7.39 7.30 7.31 7.54 7.13 6.493 6.26 6.525 6.36 6.27 6.74 7.29 Feb................. 6.36 6.33 6.24 6.35 6.24 5.583 5.50 5.674 5.62 5.56 5.97 6.85 Mar................ 6.06 6.06 6.00 6.22 5.54 5.544 5.49 5.635 5.62 5.70 6.10 7.00 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 May............... 5.70 5.82 5.74 5.76 5.22 5.315 5.23 5.649 5.59 5.91 6.31 7.49 June............... 5.67 5.79 5.53 5.70 5.55 5.193 5.34 5.463 5.61 5.86 6.26 7.26 Week ending— 1975—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 10 5.98 6.08 6.00 6.00 5.42 5.356 5.41 5.724 5.77 6.13 6.52 7.64 17 5.78 5.93 5.78 5.83 5.20 5.182 5.04 5.481 5.51 5.81 6.20 7.45 24 5.48 5.60 5.55 5.58 5.13 5.115 5.16 5.412 5.45 5.74 6.15 7.34 31 5.38 5.50 5.50 5.45 5.14 5.206 5.23 5.469 5.50 5.80 6.21 7.38 June 7........ 5.48 5.60 5.50 5.59 5.24 5.258 5.23 5.505 5.48 5.77 6.15 7.29 14 5.55 5.63 5.50 5.55 5.15 5.080 5.00 5.283 5.25 5.50 5.94 7.05 21 5.58 5.65 5.45 5.58 5.31 4.767 5.24 5.129 5.55 5.74 6.13 7.14 28 , 5.98 6.18 5.63 6.03 5.72 5.665 5.80 5.935 6.07 6.32 6.69 7.49 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 □ JULY 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 1 ( S t l e t o r a n m te g ) s ­ Total 1 Aaa Baa New ce R n e tl ­ y Aaa Baa In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 "11.60 1974—Jun e 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 10.16 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 14.35 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 "12.97 1975—Ja..............n 6.68 6.89 6.39 7.45 9.36 9.45 9.55 8.83 10.62 9.19 9.52 10.10 8.41 5.07 Feb........... 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 Mar.......... 6.73 6.70 6.28 7.25 9.35 9.38 9.28 8.67 10.29 9.05 9.25 9.67 8.04 4.42 10.18 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 May......... 6.99 6.95 6.42 7.48 9.63 9.65 9.55 8.90 10.46 9.37 9.49 9.93 8.51 4.08 June........ 6.86 6.96 6.28 7.48 9.20 9.33 9.45 8.77 10.40 9.29 9.40 9.81 8.34 4.02 Week ending— 1975—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 10, 6.98 6.87 6.35 7.35 9.65 9.60 9.56 8.96 10.45 9.38 9.47 9.97 8.49 4.13 17, 6.94 6.88 6.35 7.35 9.54 9.61 9.55 8.88 10.47 9.36 9.52 9.94 8.52 3.98 24, , 6.98 7.03 6.50 7.50 9.61 9.66 9.53 8.85 10.46 9.37 9.50 9.89 8.44 4.12 31, 7.03 7.03 6.50 7.75 9.62 9.70 9.55 8.90 10.47 9.38 9.49 9.90 8.50 4.10 June 7 6.96 7.01 6.35 7.55 9.41 9.53 9.51 8.85 10.47 9.36 9.46 9.89 8.50 3.98 14 6.81 6.84 6.15 7.35 8.95 9.22 9.46 8.76 10.42 9.29 9.41 9.83 8.29 4.07 21 . 6.82 6.96 6.30 7.50 9.07 9.14 9.41 8.73 10.37 9.26 9.38 9.76 8.36 4.08 28, 6.85 7.01 6.30 7.55 9.37 9.41 •9.41 8.75 10.35 9.25 9.36 9.76 8.22 3.93 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 daily or weekly 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

JULY 1975 □ SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer- trading in Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43= 10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m 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 i u al s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d i u al s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e 1 ( 9 A 1 7 0 u 3 0 g ) = . NYSE AMEX 1970............................ 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971............................ 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 15,381 4,234 1972............................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973............................ 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1974............................ 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1974—June............... 57.11 76.2 59.5 89.79 101.62 37.31 37.46 47.14 52.63 33.76 29.20 51.20 82.88 12,268 1,561 July................. 55.97 71.9 58.5 82.82 93.54 35.63 35.37 43.27 48.35 31.01 27.50 44.23 77.92 12.459 1,610 Aug................. 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Sept................ 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 Oct.................. 55.69 72.7 55.9 69.44 77.57 33.70 33.80 36.62 39.81 27.26 26.76 39.28 66.78 16,396 1,880 Nov................ 57.80 72.6 56.3 71.74 80.17 35.95 34.45 37.98 41.24 28.40 27.60 41.89 63.72 14,341 1,823 Dec................. 58.96 68.6 56.1 67.07 74.80 34.81 32.85 35.41 38.32 26.02 26.18 39.27 59.88 15,007 2,359 1975—Jan.................. 59.70 70.9 56.4 72.56 80.50 37.31 38.19 38.56 41.29 28.12 29.55 44.85 68.31 19,661 2,117 Feb................. 60.27 74.1 56.6 80.10 89.29 37.80 40.37 42.48 46.00 30.21 31.31 47.59 76.08 22,311 2,545 Mar................ 59.33 70.9 56.2 83.78 93.90 38.35 39.55 44.35 48.63 31.62 31.04 47.83 79.15 22,680 2,665 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 May............... 57.40 69.6 56.6 90.10 101.05 38.92 39.69 47.76 53.22 32.28 31 .02 49.97 86.94 21,785 2,521 June............... 58.33 69.8 56.7 92.40 103.68 38.97 43.65 49.21 54.61 30.79 32.78 52.20 90.57 17,052 2,743 Week ending— 1975—June 7........ 57.56 69.2 56.6 92.65 104.17 38.93 42.59 49.25 54.90 32.61 32.14 51.24 90.11 24,708 3,376 14........ 58.74 71.1 56.7 90.56 101.63 39.13 42.50 48.20 53.48 32.14 32.08 50.85 89.42 18,460 2,328 21........ 58.62 69.4 56.9 91.41 102.45 38.70 43.93 48.71 53.88 31.87 32.88 52.44 89.97 19,880 2,104 28........ 58.38 69.5 56.6 94.41 105.85 39.00 45.35 50.39 55.81 32.70 33.86 53.89 92.18 22,466 3,136 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—Apr........................................ 6,567 5,558 1,009 5,370 952 179 44 9 13 1,868 415 1,440 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.r.................................... '5,244 4,400 '844 4,260 '800 134 30 6 14 1,882 515 1,760 Apr........................................ '5,407 4,583 824 4,440 781 138 30 5 13 1,885 505 1,790 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 □ JULY 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total E pe n r d i o o d f ( l d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t r a e t d u i s t 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t of ( b m d a i o l l a l l n l i a o c r n e s s ) lars)! 1974—May....................... 37.8 40.0 22.2 6,544 1974—May, r5,260 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 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 Mar..................... 44.4 40.1 15.5 7,277 Mar.. 4,260 6.5 8.0 15.3 27.6 25.8 16.9 45.2 41 .1 13.7 7,505 Apr.. 4,440 7.1 8.7 16.1 28.7 23.5 15.9 May....................... 44.5 43.2 12.3 7,601 May. 4,780 7.0 9.1 16.7 31 .5 21 .0 13.4 Note.—Special miscellaneous accounts contain credit balances that i Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r li T a a t o b i n e t i d s l a i l ­ De it p s os­ l O ia t t i b e h i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 g re e s 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—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 Mar... 75,127 4,736 2,975 1,095 24,339 2,101 2,672 113,045 102,285 2,712 8,049 824 312 294 564 1,994 Apr.... 75,259 4,407 3,419 1,121 24,994 1,841 2,780 113,821 102,902 2,849 8,071 913 335 312 538 2,098 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

JULY 1975 □ SAVINGS INSTITUTIONS A 31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks gages estate loans assets 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—Mar.r............................. 256,220 11,756 4,528 3,485 3,743 120,374 94,606 25,768 82,180 7,759 20,643 13,508 Apr.r............................. 256,385 11,619 4,329 3,540 3,750 120,104 94,756 25,348 82,470 7,800 20,819 13,573 May r............................. 257,304 11,635 4,330 3,549 3,756 120,178 95,352 24,826 82,734 7,860 21,056 13,841 Juner.............................. 258,034 11,638 4,286 3,577 3,775 119,911 95,450 24,461 83,225 7,904 21,305 14,051 July r.............................. 258,712 11,722 4,312 3,600 3,810 119,655 95,917 23,738 83,657 7,957 21,563 14,158 Aug.r............................. 258,508 11,789 4,365 3,603 3,821 118,319 96,076 22,243 84,082 8,037 21,867 14,414 Sept. r............................. 258,116 11,762 4,316 3,618 3,828 116,884 96,162 20,722 84,427 8,100 22,175 14,768 Oct. r.............................. 261,183 11,804 4,344 3,620 3,840 119,225 96,815 22,410 85,016 8,140 22,473 14,525 Nov. r............................. 262,253 11,871 4,394 3,626 3,851 119,246 97,199 22,047 85,481 8,207 22,676 14,772 Dec.r............................. 263,349 11,965 4,437 3,667 3,861 118,572 96,652 21,920 86,234 8,331 22,862 15,385 1975—Jan.................................. 266,823 12,065 4,461 3,669 3,935 121,986 98,876 23,no 86,526 8,313 23,058 14,875 Feb.................................. 269,715 12,161 4,512 3,686 3,960 124,158 99,571 24,587 86,929 8,402 23,224 14,841 Mar................................. 272,143 12,338 4,581 3,712 4,045 125,512 100,116 25,396 87,187 8,582 23,391 15,133 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ End of period M ga o ge rt s ­ I s n m e v c e e u n s r t t ­ ­ Cash Other l a ia s T b s o e il t t i s a t — i l e s S c a a v p i i n ta g l s w N or e t t h2 m ro B o w n o e e r y ­ d 3 p L ro o i c n a e n s s s Other ou m a p t t s i e t e t m r a n i n o d e d d n i o t 4 n s f g ities 1 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—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......................... 252,463 28,293 24,295 305,051 255,973 18,653 20,417 3,239 6,769 10,050 Apr.......................... 254,748 29,035 24,955 308,738 258,831 18,881 19,889 3,567 7,570 11,653 MayP....................... 257,933 30,633 25,604 314,170 262,722 19,121 19,359 4,052 8,916 12,568 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 □ JULY 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 notes2 ing Special Other balance issues Fiscal year: 197 1 188,392 211,425 -23,033 27,211 -347 6,616 801 19,448 710 -710 3,587 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 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 y "19,240 "24,034 "-4,794 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 c —801 Mar.......... 20,134 27,986 -7,852 9,949 5 -1,216 -79 11,249 3,115 285 3 Apr.......... 31,451 29,601 1,850 7,081 -37 10 -451 7,485 7,666 1,847 178 May........ 12,793 28,186 -15,394 1.1,418 -6 3,296 -44 8,556 -5,757 -732 349 Selected balances Treasury operating balance Borrowing from the public. Memo: pe E o r n i f o d d B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p th i o e e s s r i 4 ­ Total se P c d u u e b r b i l t t i i c es s A ec g u e r n it c i y es S G p I e o n c v v ia t e , l s L t a m e c s c e s o : n u t O s n t t o h s f e 1 r S n L p o e e t c s e s i s a : 2 l E T q o u ta a l ls: s c p p D o G r o N r e i n o v p b o s v a s t o w t t . r — . e o - e 5 f d issues Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,934 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 Calendar year 197 3 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 59,857 197 4 3,113 2,749 70 5,932 492,664 11,367 117,761 25,423 (6) 360,847 Month: 1974—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 88 6,454 6475,344 11,895 114,063 25,471 (6) 347,706 68,243 Aug... 3,304 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 69,951 Sept... 3,211 5,384 92 8,687 481,466 11,664 116,885 25,696 350,549 73,068 Oct.... 789 1,381 71 2,241 480,224 11,422 114,832 25,544 351,270 75,343 Nov.. . 1,494 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—Jan.... 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 76,392 Apr__ 8,363 5,411 521 14,295 516,740 11,004 115,606 24,355 387,783 77,124 May... 8,538 981 521 10,040 528,158 10,998 118,902 23,915 396,339 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

JULY 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- ceipts3 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 1974........................... 264,932 112,064 2830,81223,952 118,95241,744 3,125 62,886 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,368 Half year: 1973—Jan.-June... 126,16452,037 221,23321,179 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 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,341 Month: 1974—May.............. rl 9,240 r10,081 5 1,204 5,651 r5,639 1,318 218 7,196 311 2,190 33910,036 1,391 295 437 r342 June.............. 31,259 10,611 4 4,077 462 14,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 July............... 20,939 10,227 957 378 10,806 1,796 310 5,005 418 358 5,781 1,517 325 418 607 Aug............... 23,620 10,223 491 229 10,485 1,084 256 7,813 1,363 368 9,544 1,415 355 453 540 Sept............... 28,377 9,754 4,323 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 \A 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 Apr................ 31,451 9,542 1512,766 6,258 16,065 5,819 726 5,438 1,743 557 388 8,126 1,166 286 317 399 May............... 12,793 10,300 81912,749 -1,630 1,192 18 7,689 340 2,209 35010,588 1,373 270 459 559 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 ceipts 6 justice Fiscal year: 197 2 231,876 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 -8,137 197 3 246,526 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 -12,318 197 4 268,392 78,569 3,593 4,154 2,230 6,390 13,100 4,910 11,600106,505 13,386 28,072 5,789 6,746 -16,651 1975 8................... 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 7,528 382 350 156 468 666 199 1,024 11,174 1,993 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 Apr........... 29,601 7,555 109 368 275 611 1,088 309 1,838 12,379 1,466 2,716 152 1,524 -1,053 May......... 28,186 8,000 408 384 42 679 995 383 1,647 1,616 1,468 2,607 240 -873 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 non withheld 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 reflect the new functional classification of outlays presented in the 1976 Budget. For a description of these functions, see Note.—Half years may not add to fiscal year totals due to revisions in Budget of the U.S. Government, Fiscal Year 1976, pp. 64—65. series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 U.S. GOVERNMENT SECURITIES □ JULY 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S ss p u e e c s ia 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n r le d t­ s Total 3 F is o su re e i s g n 4 S b a o a v n n in d d g s s notes 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—June 475.1 357.8 266.6 105.0 128.4 33.1 2.3 89.0 25.0 62.4 115.4 July. 475.3 359.7 268.8 107.3 128.4 33.0 2.3 88.7 24.4 62.7 114.6 Aug. 481.8 362.0 272.1 110.6 127.7 33.9 2.3 87.6 23.2 62.8 118.7 Sept. 481.5 362.7 272.6 111.1 127.7 33.8 2.3 87.8 23.2 63.0 117.4 Oct. 480.2 363.9 273.5 112.1 127.7 33.8 2.3 88.1 23.1 63.3 115.3 Nov. 485.4 368.2 277.5 114.6 129.6 33.3 2.3 88.4 23.1 63.6 115.9 Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—Jan.. 494.1 377.1 286.1 120.0 131.8 33.3 2.3 88.8 23.0 64.2 116.0 Feb. 499.7 381.5 289.8 123.0 132.7 34.1 2.3 89.4 23.3 64.5 117.2 Mar. 509.7 392.6 300.0 124.0 141.9 34.1 2.3 90.4 24.0 64.8 116.0 Apr. 516.7 399.8 307.2 127.0 145.0 35.3 2.3 90.3 23.6 65.2 116.0 May 528.2 407.8 314.9 131.5 146.5 36.8 2.3 90.6 23.5 65.5 119.2 June 533.2 408.8 315.6 128.6 150.3 36.8 2.3 90.9 23.2 65.9 123.3 1 Includes non-interest-bearing debt (of which $624 million on June 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 i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n u n .S v c s d 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 ts e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t O i m o n r t v i 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 2bl.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Apr................. 471.9 131.1 80.0 260.7 56.8 2.7 5.9 10.5 30.1 61.4 17.8 55.9 19.7 May............... 474.7 133.9 81.4 259.4 54.8 2.6 5.8 11.2 29.2 61.7 18.3 57.3 18.5 June............... 475.1 138.2 80.5 256.4 53.2 2.6 5.9 10.8 28.3 61.9 18.8 57.7 17.3 July................. 475.3 137.5 78.1 259.7 53.9 2.6 5.7 11.3 28.8 62.2 19.4 56.9 18.8 Aug................. 481.8 141.6 81.1 259.0 53.0 2.6 5.7 11.0 29.2 62.3 20.3 56.0 19.0 Sept................. 481.5 140.6 81.0 259.8 52.9 2.5 5.7 10.5 29.3 62.5 20.8 56.0 19.5 Oct.................. 480.2 138.4 79.4 262.5 53.5 2.5 5.9 11.2 28.8 62.8 21.0 56.6 20.3 Nov................ 485.4 139.0 81.0 265.3 54.5 2.5 5.9 11.0 28.7 63.2 21.1 58.3 20.1 Dec................. 492.7 141.2 80.5 271.0 56.5 2.5 6.1 11.0 29.2 63.4 21.5 58.4 22.4 1975—Jan.................. 494.1 139.0 81 .3 273.8 54.5 2.6 6.2 11.3 30.0 63.7 21.6 61.5 22.3 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 Mar................ 509.7 138.5 81.4 289.8 62.0 2.9 6.6 12.0 29.7 64.4 2t .4 65.0 25.9 Apr.*.............. 516.7 138.0 87.8 290.9 63.0 3.2 6.7 12.5 29.8 64.7 21.4 64.9 24.7 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

JULY 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 rs 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—Apr. 30............................................................. 307,202 160,981 126,907 34,074 93,444 29,254 16,688 6,835 May 31............................................................. 314,886 164,160 131,541 32,619 100,926 26,834 14,549 8,418 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—Apr. 30.................................................... 20,499 2,397 440 1 ,957 7,722 3,968 4,802 1 ,610 May 31.................................................... 20,114 2,183 393 1,790 7,491 4,209 4,271 1,960 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—Apr. 30.................................................... 87,846 49,764 38,329 11,435 24,052 11,077 1 ,705 1 ,248 May 31.................................................... 85,622 46,603 38,287 8,316 28,925 6,994 1,375 1,725 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—Apr. 30.................................................... 198,857 108,820 88,138 20,682 61,670 14,209 10,181 3,977 May 31.................................................... 209,150 115,374 92,861 22,513 64,510 15,631 8,903 4,733 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—Apr. 30............................................ 49,282 16,183 7,351 8,832 27,211 4,900 731 257 May 31............................................ 51,065 18,309 8,527 9,782 27,359 4,487 621 290 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—Apr. 30............................................ 2,106 436 191 245 918 365 261 125 May 31............................................ 2,276 501 224 277 1,055 369 235 117 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—Apr. 30............................................ 5,303 683 386 297 1 ,440 1 ,412 1 ,421 348 May 31............................................ 5,537 793 450 343 1,534 1,637 1,164 408 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—Apr. 30............................................ 5,278 2,803 2,013 790 2,107 230 98 40 May 31............................................ 5,869 3,285 2,420 865 2,174 263 101 46 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—Apr. 30............................................ 2,083 562 294 268 1 ,034 289 178 19 May 31............................................ 2,212 619 325 294 1,184 271 119 20 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—Apr. 30............................................ 8,245 4,647 3,908 739 1,719 543 980 356 May 31............................................ 8,089 4,397 3,661 736 1,716 676 831 469 AH 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—Apr. 30............................................ 126,560 83,505 73,994 9,511 27,240 6,470 6,512 2,833 May 31............................................ 134,100 87,470 77,254 10,216 29,487 7,927 5,831 3,384 Note.—Direct public issues only. Based on Treasury Survey of banks, and 732 insurance companies combined, each about 90 per cent; Ownership. (2) 459 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) 502 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) 5,562 commercial banks, 474 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES o JULY 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—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 Nov................................. 3,977 2,872 635 384 86 560 1,049 1,144 1,224 1,186 Dec................................. 4,111 3,126 550 369 67 671 1,196 1,120 1,124 1,087 1975—Jan.................................. 5,415 3,495 1,514 303 104 887 1,549 1,503 1,478 1,244 Feb.................................. 5,770 3,353 1,521 711 185 698 2,044 1,511 1,518 1,233 Mar................................. 4,467 2,812 994 464 197 671 1 ,183 1 ,198 1,415 928 Apr.................................. 5,197 3,682 1 ,096 285 134 704 1 ,450 1 ,242 1 ,801 904 May................................ 6,419 4,181 1,615 466 158 981 1,917 1,454 2,067 1,049 Week ending— 1975—May 7......................... 6,442 4,611 1 ,465 252 115 1 ,011 1 ,872 1 ,395 2,164 853 14......................... 7,593 4,508 1 ,927 903 254 1 ,100 2,373 1 ,931 2,190 952 21......................... 6,584 4,244 1 ,755 430 156 1 ,036 2,063 1 ,449 2,037 1 ,126 28......................... 5,044 3,290 1 ,341 311 102 777 1 ,427 1 ,022 1 ,818 1 ,351 June 4......................... 5,864 4,184 1,214 328 139 890 1,628 1,296 2,050 1,051 11......................... 6,310 4,240 1,474 459 137 834 1,859 1,621 1,996 1,452 18......................... 5,352 3,439 1,339 445 129 801 1,558 1,280 1,713 1,096 25......................... 4,929 3,033 1,434 314 147 693 1,581 1,055 1,599 1,334 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i y . ­ Period sou A r l c l es Y N C o e it r w 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—May................. 495 421 -33 66 41 791 1974—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 1975—Jan.............. 6,185 1,455 1,277 864 2,590 Feb.................. 5,588 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 Apr.................. 4,453 3,123 1,036 218 77 937 Apr............. 5,696 1,655 1,326 583 2,132 May................ 6,332 4,917 1,094 248 73 896 May........... 6,656 1,684 1,567 452 2,953 Week ending— Week ending— 1975—Apr. 2......... 5,840 3,541 1,568 498 233 1,277 1975—Apr. 2... 6,764 2,027 1,906 832 1,998 9 5,599 3,564 1,437 446 152 1,084 9. .. 7,128 2,426 1,759 843 2,101 16......... 4,742 3,149 1,171 319 103 941 16. . . 5,979 2,005 1,340 670 1,964 23, , 3,643 2,647 870 87 39 793 23... 5,033 1,376 1,033 399 2,225 30 3,011 2,725 422 -90 -46 838 30. .. 4,368 627 988 383 2,371 May 7......... 4,773 4,573 457 -136 -121 806 May 7. .. 5,108 1,113 1,199 315 2,482 14 6,713 4,966 1,019 583 145 879 14. .. 6,189 1,768 1,143 464 2,815 21. , , 7,164 5,113 1,578 324 149 940 21... 7,945 2,328 1,602 570 3,445 28., , 6,890 5,088 1,414 258 130 942 28... 7,222 1,704 2,060 471 2,988 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

JULY 1975 □ FEDERALLY SPONSORED CREDIT AGENC A 5ING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, MAY 31, : Cou­ Amount Cou­ Amount moui pon (millions Agency, and date of issue pon (millions Agency, and date of issue lillioi rate of dollars) and maturity rate of dollars) and maturity lolla: Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 7.95 300 Debentures: 12/2/74 -6/2/75. . 542 7.88 500 4/12/71 -6/10/75............. 5.25 500 1/2/75 - 7/1/75. . , 493 7.15 400 10/13/70 - 9/10/75......... 7.50 350 2/3/75 - 8/4/75 . . . 478 6.50 350 3/12/73 -9/10/75............. 6.80 650 3/3/75-9/2/75 407 7.05 600 3/10/72 - 12/10/75......... 5.70 500 4/1/75 - 10/1/75.. 326 9.10 700 9/10/73 - 12/10/75........... 8.25 300 5/1/75 - 11/3/75.. 336 8.70 400 3/11/71 - 3/10/76............. 5.65 500 10/1/73 -4/4/77.. 200 7.38 300 6/12/73 - 3/10/76............. 7.13 400 12/2/74 - 10/1/79. 201 8.75 300 6/10/71 -6/10/76............. 6.70 250 9.20 600 2/10/72 - 6/10/76............. 5.85 450 7.20 600 9/10/74-6/10/76............. 10.00 700 Federal intermediate 7.45 300 11/10/71 - 9/10/76........... 6.13 300 credit banks 7.80 500 6/12/72-9/10/76............ 5.85 500 Bonds: 9.55 700 12/10/74-9/10/76.......... 7.50 200 9/3/74 - 6/2/75......... 714 8.60 600 7/12/71 - 12/10/76........... 7.45 300 10/1/74-7/1/75___ 769 9.55 500 12/11/72- 12/10/76......... 6.25 500 1/3/72 -7/1/75......... 302 7.20 500 6/10/74-12/10/76........... 8.45 600 11/4/74-8/4/75___ 758 8.05 500 3/13/62 - 2/10/77........... 4.50 198 12/2/74 -9/2/75.... 783 8.70 500 9/11/72 - 3/10/77............. 6.30 500 1/2/75 - 10/1/75 ___ 563 6.95 200 3/11/74 - 3/10/77............. 7.05 400 2/3/75 - 11/3/75___ 824 7.15 300 12/10/70 - 6/10/77......... 6.38 250 3/3/75-12/1/75......... 897 8.80 600 5/10/71 -6/10/77............. 6.50 150 3/1/73 - 1/5/76......... 261 6.75 300 12/10/73 -6/10/77........... 7.20 500 4/1/75 - 1/5/76......... ,079 7.45 300 9/10/71 -9/12/77............. 6.88 300 5/1/75 -2/2/76......... 909 9.15 700 9/10/73 - 9/12/77............. 7.85 400 7/2/73 - 1/3/77......... 236 9.38 400 7/10/73 - 12/12/77........... 7.25 500 7/1/74-4/4/77......... 321 7.60 500 10/1/73 - 12/12/77........... 7.55 500 1/2/74 - 1/3/78......... 406 9.10 500 6/10/74-3/10/78............. 8.45 650 1/2/75 -1/2/79......... 410 8.65 600 3/10/75-3/10/78............... 6.70 350 9.45 600 6/12/73 - 6/12/78............. 7.15 600 8.65 500 3/11/74 -9/11/78............. 7.15 550 Federal land banks 8.75 400 10/12/71 - 12/11/78.... 6.75 300 Bonds: 9.50 500 7/10/74- 12/11/78........... 8.95 450 2/15/72 - 7/21/75... 5.70 425 8.15 500 12/10/73 -3/12/79........... 7.25 500 4/22/74-7/21/75... 8.30 300 7.50 500 9/10/73 -6/11/79............. 7.85 300 7/20/71 - 10/20/75.. 7.20 300 7.75 350 9/10/74-6/11/79............. 9.80 600 10/23/73 - 10/20/75. 7.40 362 7.05 300 6/12/72-9/10/79............. 6.40 300 4/20/72- 1/20/76... 6.25 300 7.80 200 12/10/74 -9/10/79........... 7.80 700 7/22/74 - 1/20/76... 9.20 650 6.60 200 12/10/71 - 12/10/79___ 6.55 350 2/21/66 - 2/24/76.. 5.00 123 8.65 400 2/10/72 - 3/10/80............. 6.88 250 1/22/73 -4/20/76... 6.25 373 7.30 183 3/10/75-3/10/80............... 7.25 750 4/22/74-4/20/76... 8.25 400 7.38 400 4/I/75 -4/10/80............... 7.63 300 7/20/66 - 7/20/76.. 5.38 150 8.75 300 6/10/74-6/10/80............. 8.50 600 1/21/74-7/20/76... 7.05 360 7.38 400 2/16/73 - 7/31/80............. 5.19 1 4/23/73 - 10/20/76.. 7.15 450 2/16/73 -7/31/80............. 3.18 9 4/21/75 - 1/20/77... 7.45 750 10/1/73 -9/10/80............. 7.50 400 4/22/74 - 4/20/77... 8.25 565 1/16/73 - 10/30/80........... 4.46 5 7/20/73 -7/20/77... 7.50 550 12/11/72 - 12/10/80......... 6.60 300 10/20/71 - 10/20/77. 6.35 300 7.05 400 6/29/72- 1/29/81............. 6.15 156 10/21/74- 1/23/78.. 8.70 546 6.15 350 3/12/73 - 3/10/81............. 7.05 350 2/20/63 - 2/20/73-78 4.13 148 8.60 140 4/18/73 - 3/10/81............. 6.59 26 5/2/66 - 4/20/78 ... 5.13 150 7.75 150 3/21/73 - 5/1/81............... 4.50 18 1/20/75 -4/20/78. .. 7.60 713 7.15 150 3/21/73 - 5/1/81............... 5.77 2 7/20/72 - 7/20/78.. 6.40 269 8.20 300 9 1 / / 1 2 0 1 / / 7 7 1 1 - - 9 / 6 1 / 0 1 / 0 8 / 1 81 ... . . . . . . . . . . . . . . . . . . . . . 7 7. .2 25 5 2 2 5 5 0 0 7 10 /2 /2 2 3 / / 7 73 4 - - 7 / 1 2 0 0 /1 /7 9/ 8 7 . 8 .. . 9 7 . . 1 3 5 5 3 5 5 5 0 0 9/10/74-9/10/81............. 9.70 300 2/20/67 - 1/22/79... 5.00 285 3/11/74-12/10/81........... 7.30 250 1/21/74- 1/22/79... 7.10 300 7/10/74-3/10/82............. 8.88 300 9/15/72-4/23/79... 6.85 235 6/28/72-5/1/82............... 5.84 58 2/20/74 - 7/23/79. .. 7.15 389 2,467 2/10/71 - 6/10/82............. 6.65 250 10/23/72 - 10/23/79. 6.80 400 9/11/72 - 9/10/82............. 6.80 200 1/22/73 - 1/21/80... 6.70 300 4.38 248 12/10/73 - 12/10/82......... 7.35 300 7/20/73 - 7/21/80... 7.50 250 7.40 250 3/11/71 - 6/10/83............. 6.75 200 10/21/74- 10/20/80. 8.70 400 6/12/73 - 6/10/83............. 7.30 300 2/23/71 -4/20/81... 6.70 224 11/10/71 -9/12/83........... 6.75 250 7/22/74 - 7/20/81... 9.10 265 8.38 250 4/12/71 -6/11/84............. 6.25 200 1 /20/75 - 1120/82. .. 7.80 400 3.58 53 12/10/74-9/10/84........... 7.95 300 4/20/72-4/20/82... 6.90 200 5.48 5 12/10/71 - 12/10/84___ 6.90 250 4/21/75 -4/20/82. .. 8.15 300 5.85 71 3/10/75-3/11/85............... 7.65 500 4/23/73 - 10/20/82.. 7.30 239 5.92 35 3/10/72 - 3/10/92........... 7.00 200 10/23/73 - 10/20/83. 7.30 300 5.50 10 6/12/72-6/10/92............. 7.05 200 5.49 21 12/11/72 - 12/10/97-82. . 7.10 200 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 □ JULY 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—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 Apr... 17,528 6,836 98 18,448 2,651 2.660 29,931 28,257 3,650 3.329 9,520 8,277 14,917 13,571 May.. 17,145 5,745 98 19,283 2,708 2,656 29,977 27,714 3,499 3,410 9,763 10,071 15,180 13,571 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 G o e b a n l l e i­ r­ R n e u v e e­ 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 5 s- V a a e n i t d e s r ' ­ O p p o t u h s r e e ­ s r gations auth. 197 1 24,963 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,653 13,305 9,332 959 57 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 6,741 197 3 23,968 12,257 10,632 1,022 r57 4,212 *•9,505 10,249 22,397 4,311 1,458 5,654 2,639 8,335 197 4 24,315 13,563 10,212 461 79 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 1974—May.. 2,313 1,101 1,203 9 451 1,097 756 2,237 442 18 711 1,058 June.. 2,171 1,075 856 234 6 580 721 864 2,079 220 62 664 334 799 July. . 1,466 859 600 7 540 158 761 1,456 314 58 154 930 Aug. . 1,109 576 529 4 141 400 565 1,067 228 85 257 15 482 Sept.. 1,705 869 832 4 448 641 611 1,669 251 11 380 21 1,006 Oct.. . 2,865 1,707 1,153 5 328 974 1,558 2,738 343 110 236 110 1,939 Nov.. 2,487 1,110 1,374 3 689 1,005 789 2,403 698 4 866 9 826 Dec... 1,500 761 717 22 222 558 700 1,475 297 64 424 53 637 1975—Jan... 2,363 1,364 993 6 372 702 1,288 2,328 710 49 644 172 753 Feb... 2,327 1,720 602 5 877 582 861 2,287 432 206 417 105 1,127 Mar.r 2,088 1,288 798 2 376 673 1 ,043 2,034 468 94 471 35 966 Apr.r 2,377 1,481 889 7 368 873 1,133 2,296 405 60 727 38 1,066 May.. 2,791 1,810 976 5 793 1,173 821 2,697 404 208 555 25 1,505 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

JULY 1975 □ SECURITY ISSUES A 39 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 al Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1971... 105,233 17,235 16,283 24,370 2,165 44,914 31,999 24,790 7,209 3,679 9,236 1972... 96,522 17,080 12,825 23,070 1,589 40,787 27,727 18,347 9,378 3,373 9,689 1973... 100,417 19,057 23,883 22,700 1,385 33,391 22,268 13,649 8,620 3,372 7,750 1974'.. 37,851 31,563 25,337 6,226 2,253 4,035 1974—Mar.. 3,217 2,457 2,020 437 398 362 Apr.. 3,059 2,259 1,594 '666 355 445 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.. 1,620 1,205 897 308 126 289 Oct... 4,625 3,793 3,423 '355 196 '635 Nov.. 3,762 3,352 3,016 '337 93 '307 Dec.. 3,471 3,018 2,172 '880 152 301 1975—Jan.. 5,275 4,685 3,657 1,028 235 341 Feb.. '4,531 3,909 3,201 708 '173 '449 Mar., 5,343 4,446 3,970 476 253 644 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 ea 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................................................... 9,551 2,102 2,158 2,370 2,006 434 7,576 4,201 4,222 1,596 6,484 2,204 1972................................................... 4,796 1,812 2,669 2,878 1,767 187 6,398 4,967 3,680 1,127 8,415 2,096 1973.................................................. 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1974'................................................ 9,890 543 1,856 958 983 22 8,872 3,964 3,710 222 6,246 587 1974—Mar....................................... 479 161 52 71 76 850 449 310 21 691 58 Apr........................................ '1,194 9 238 56 6 446 684 283 5 95 47 May...................................... 847 15 332 71 44 837 75 660 3 239 44 June...................................... 434 '43 '303 139 5 15 859 288 355 1 491 39 July....................................... 1,051 43 '254 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 40 5 384 296 331 18 218 48 Oct......................................... '725 3 102 29 306 1,414 695 439 36 791 '69 Nov....................................... 1,697 2 124 100 336 739 '225 62 31 397 '44 Dec........................................ '1,456 196 180 23 14 '435 194 150 25 '817 15 1975—Jan......................................... 1,845 3 153 75 84 792 507 927 5 914 Feb........................................ 1,669 '44 63 60 74 1,465 '486 106 1 532 32 Mar....................................... 2,361 111 268 74 83 828 679 312 595 33 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ­ 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See Note to table at bottom of opposite page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 SECURITY ISSUES □ JULY 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 1974—1................... 8,973 2,031 6,942 6,810 1,442 5,367 2,163 588 1,575 11................. 9,637 2,048 7,589 7,847 1,584 6,263 1,790 465 1,326 Ill................ 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,759 82 IV................ 12,272 2,871 9,401 10,086 2,004 8,082 2,186 866 1,319 1975—1................... 15,211 2,088 13,123 12,759 1,587 11,172 2,452 501 1,951 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and 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 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 1975—1................... 5,134 262 373 77 1 1 2,653 1 ,569 1,269 24 1,742 18 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 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963............... 2,460 1,504 952 25,214 1,341 23,873 1974—May.. 323 320 3 41,015 4,389 36,626 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 June.. 337 276 61 40,040 4,461 35,579 1965............... 4,359 1,962 2,395 35,220 1,803 33,417 July. . 442 352 90 37,669 4,609 33,060 Aug... 446 339 127 35,106 4,953 30,153 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Sept... 499 292 207 31,985 5,078 26,907 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Oct.. . 816 311 505 37,115 5,652 31,463 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 Nov... 619 335 284 36,366 5,804 30,562 Dec... 736 411 325 35,777 5,637 30,140 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 1970............... 4,624 2,987 1,637 47,618 3,649 43,969 1975—Jan... 1,067 428 639 3,7407 3,889 33,518 1971............... 5,145 4,751 394 55,045 3,038 52,007 Feb... 889 470 419 39,330 4,006 35,324 Mar. . 847 623 224 40,449 3,870 36,579 1972............... 4,892 6,563 -1,671 59,831 3,035 56,796 Apr.. . 808 791 17 42,353 3,841 38,512 1973............... 4,358 5,651 -1,261 46,518 4,002 42,516 May.. 677 735 58 43,829 3,876 39,953 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

JULY 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 s r 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 e t s s d ­ co c a n a t l i l s p o o u i w n 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 p ri r b n o u d fi t 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—11.... 124.9 50.9 74.0 29.1 44.9 70.8 1969............... 84.9 40.1 44.8 24.3 20.5 51.9 III... 122.7 49.9 72.9 29.8 43.1 71.6 1970............... 74.0 34.8 39.3 24.7 14.6 56.0 IV... 122.7 49.5 73.2 30.7 42.5 73.1 1971................ 83.6 37.5 46.1 25.0 21.1 60.4 1972................ 99.2 41.5 57.7 27.3 30.3 66.3 1974—1___ 135.4 52.2 83.2 31.6 51.6 74.1 1973................ 122.7 49.8 72.9 29.6 43.3 71.2 II. . . 139.0 55.9 83.1 32.5 50.5 75.7 1974................ 140.7 55.7 85.0 32.7 52.4 76.7 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 1975—1. 101.2 39.0 62.3 33.8 28.5 81.2 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 U.S. Other U.S. Other taxes Govt.1 Govt.1 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—IV........................ 224.3 563.1 60.5 9.9 3.4 230.5 215.1 43.6 338.8 4.0 221.6 14.1 99.1 1973—1........................... 231,8 579.2 61.2 10.8 3.2 235.7 222.8 45.5 347.4 4.1 222.8 15.7 104.7 II......................... 237.7 596.8 62.3 9.6 2.9 245.6 230.3 46.0 359.1 4.5 232.5 13.9 108.1 Ill....................... 241.9 613.6 62.2 9.5 3.0 254.2 238.2 46.6 371.7 4.4 240.8 15.3 111.2 IV........................ 245.3 631.4 65.2 10.7 3.5 255.8 247.0 49.3 386.1 4.3 252.0 16.6 113.3 1974—1........................... 253.2 653.9 62.8 11.7 3.2 265.6 258.9 51.6 400.7 4.5 256.7 18.7 120.7 II......................... 257.4 673.3 62.2 10.4 3.4 278.7 269.7 48.8 415.8 4.7 268.4 17.4 125.3 Ill....................... 263.6 696.0 63.9 10.7 3.5 284.1 282.7 51.1 432.4 5.1 276.6 20.5 130.2 IV........................ 265.9 700.2 66.4 11.4 3.5 278.5 288.8 51.7 434.3 5.2 277.4 21.0 130.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other i T A (S o . . R t A a . . ) l 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 1973—1.................... 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II.................. 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill................. 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV................. 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 103.74 1974—1.................... 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II................. 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill................. 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV................. 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—1................... 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 114.57 IP................ 28.63 5.42 6.46 .94 .81 .54 .63 4.38 .75 8.7'2 113.39 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 □ JULY 1975 MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER (In millions of dollars) End of year End of quarter Type of holder, and type of property 1974 1975 1971 1972 1973 I" II" III" IV" I" ALL HOLDERS................................................ 499,758 564,825 634,954 645,920 664,298 678,693 688,576 695,358 1- to 4-family.................................................... 307,200 345,384 386,240 391,751 402,137 410,184 414,961 418,680 Multifamily1..................................................... 67,367 76,496 85,401 86,582 88,258 90,270 92,043 93,016 Commercial....................................................... 92,333 107,508 123,965 127,384 132,122 135,048 137,281 138,179 Farm................................................................... 32,858 35,437 39,348 40,203 41,781 43,191 44,291 45,483 PRIVATE FINANCIAL INSTITUTIONS.. 394,239 450,000 505,400 513,918 528,173 537,524 542,589 546,915 1- to 4-family.................................................... 253,540 288,053 322,047 326,844 335,414 340,857 343,374 346,090 Multifamily1..................................................... 52,498 59,204 64,730 65,377 66,583 67,844 68,521 69,122 Commercial....................................................... 78,345 92,222 107,128 110,047 114,185 116,511 118,264 119,162 Farm................................................................... 9,856 10,521 11,495 11,650 11,991 12,312 12,430 12,541 Commercial banks2.......................................... 82,515 99,314 119,068 121,882 127,320 130,582 132,105 132,105 1- to 4-family................................................ 48,020 57,004 67,998 69,374 72,253 73,987 74,758 74,740 Multifamily1................................................. 3,984 5,778 6,932 7,046 7,313 7,496 7,619 7,614 Commercial................................................... 26,306 31,751 38,696 39,855 41,926 43,092 43,679 43,700 Farm............................................................... 4,205 4,781 5,442 5,607 5,828 6,007 6,049 6,051 Mutual savings banks...................................... 61,97.8 67,556 73,230 73,929 74,225 74,809 74,920 75,160 1- to 4-family................................................ 38,641 41,650 44,246 44,443 44,398 44,604 44,670 44,796 14,386 15,490 16,843 17,002 17,070 17,208 17,234 17,292 Commercial................................................... 8,901 10,354 12,084 12,425 12,698 12,938 12,956 12,997 Farm............................................................... 50 62 57 59 59 59 60 75 174,250 206,182 231,733 236,136 243,400 247,624 249,306 252,463 1- to 4-family................................................ 142,275 167,049 187,750 191,223 197,008 200,352 201,564 204,116 Multifamily1................................................ 17,355 20,783 22,524 22,763 23,342 23,574 23,684 23,934 Commercial.................................................. 14,620 18,350 21,459 22,150 23,050 23,698 24,058 24,413 Life insurance companies................................ 75,496 76,948 81,369 81,971 83,228 84,509 86,258 87,187 1- to 4-family................................................ 24,604 22,350 22,053 21,804 21,755 21,914 22,382 22,438 Multifamily1................................................. 16,773 17,153 18,431 18,566 18,858 19,566 19,984 20,282 Commercial.................................................. 28,518 31,767 34,889 35,617 36,511 36,783 37,571 38,052 Farm.............................................................. 5,601 5,678 5,996 5,984 6,104 6,246 6,321 6,415 FEDERAL AND RELATED AGENCIES.. 39,357 45,790 55,664 58,262 62,585 67,829 72,267 75,973 1- to 4-family.................................................... 26,453 30,147 35,454 37,168 39,784 43,188 45,748 47,751 Multifamily1..................................................... 4,555 6,086 8,489 8,923 9,643 10,644 11,790 12,662 Commercial....................................................... 11 Farm................................................................... 8,338 9,557 11,721 12,171 13,158 13,997 14,729 15,560 Government National Mortgage Association 5,323 5,113 4,029 3,604 3,618 4,052 4,848 5,584 1- to 4-family................................................ 2,770 2,490 1,330 1,189 1,194 1,337 1,600 1,843 Multifamily1................................................ 2,542 2,623 2,699 2,415 2,424 2,715 3,248 3,741 Commercial.................................................. 11 Farmers Home Administration....................... 819 837 1,200 1,300 1,400 1,500 1,600 1,700 1- to 4-family................................................ 398 387 550 596 642 688 734 780 Farm.............................................................. 421 450 650 704 758 812 866 920 Federal Housing and Veterans Administra­ tions ............................................................ 3,389 3,338 3,476 3,514 3,619 3,765 3,900 4,025 1- to 4-family................................................ 2,517 2,199 2,013 1,964 1,980 2,037 2,083 2,119 Multifamily1................................................. 872 1,139 1,463 1,550 1,639 1,728 1,817 1,906 Federal National Mortgage Association.... 17,791 19,791 24,175 24,875 26,559 28,641 29,578 29,754 1- to 4-family................................................ 16,681 17,697 20,370 20,516 21,691 23,258 23,778 23,743 Multifamily1................................................ 1,110 2,094 3,805 4,359 4,868 5,383 5,800 6,011 Federal land banks (farm only)................... 7,917 9,107 11,071 11,467 12,400 13,185 13,863 14,640 Federal Home Loan Mortgage Corporation. 964 1,789 2,604 2,637 3,191 3,713 4,586 4,608 1- to 4-family................................................ 934 1,754 2,446 2, All 2,951 3,414 4,217 4,231 Multifamily1................................................ 30 35 158 165 240 299 369 377 GNMA Pools.................................................... 3,154 5,815 9,109 10,865 11,798 12,973 13,892 15,662 1- to 4-family................................................ 3,153 5,620 8,745 10,431 11,326 12,454 13,336 15,035 Multifamily1................................................. 1 195. 364 434 472 519 556 627 INDIVIDUALS AND OTHERS3................. 66,162 69,035 73,890 73,740 73,540 73,340 73,720 72,470 1- to 4-family.................................................... 27,207 27,184 28,739 27,739 26,939 26,139 25,839 24,839 Multifamily1..................................................... 10,314 11,206 12,182 12,282 12,032 11,782 11,732 11,232 Commercial...................................................... 13,977 15,286 16,837 17,337 17,937 18,537 19,017 19,017 Farm.................................................................. 14,664 15,359 16,132 16,382 16,632 16,882 17,132 17,382 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

JULY 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) Total i F su H in re A ­ d - a g n V u t A e a e r - ­ d c P ha u s r e ­ s Sales p d M u er r a i i d o n e d g st O i a n n u g d t­ ­ Total F V H A A- t C i v o e o n n n a ­ ­ l c P ha u s r e ­ s Sales d p M e u r r a i i d o n e d g s O t i a n u n g t d ­ ­ 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—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 2,640 113 309 21 2,070 Mar. . 29,754 19,277 8,304 151 1 639 6,636 4,608 1 ,887 2,722 113 19 52 1 ,040 Apr... 29,815 19,282 8,337 211 913 6,890 4,634 1 ,890 2,744 121 71 297 1 ,161 May.. 29,858 19,251 8,395 247 621 6,615 1 Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms i Yields (per cent) in insured primary market loans—Yield Period in private C ra o c te e n n t ( r t p a ) e c r t ( F p c e e h r e a s c r g e a n e n s t d ) 2 M (y a e tu ar r s it ) y L (p o e a r r n a t / c i p e o r n ic t) e pr o P i f c u e d r c o ( h l t l h a a o s r u e s) s. (t a d h m L o o l o u o la a s u r . n n s o ) t f F s H er L ie B s B 3 s H er U ie D s4 s m ec a o r n k d e a t r 5 y 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 7.53 1973............................. 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 1974............................. 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 1974—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 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 76.5 44.4 33.0 9.12 9.05 8.84 Mar.................. 8.79 1 .61 26.5 75.1 45.9 33.7 9.06 8.90 8.69 Apr.r.. 8.71 1 .53 26.5 76 4 44 5 33.4 8.96 9.00 May*............... 8.63 1 .63 27.0 75.3 43.4 32.1 8.90 9.05 9.16 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 □ JULY 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 Jan. 27 Feb. 10 Feb. 24 Mar. 10 Mar. 24 Apr. 7 Apr. 21 May 5 May 19 June 2 June 16 June 30 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................... 41.4 24.6 36.2 99.2 460.5 551.6 470.9 525.5 165.6 172.5 73.4 358.7 Accepted.................................. 28.6 18.1 23.8 60.1 321.4 277.2 247.3 280.4 115.0 80.4 38.6 246.9 Conventional loans Offered1................................... 11.1 14.8 20.0 34.4 60.7 99.8 79.2 69.8 46.4 51.2 28.5 67.5 Accepted.................................. 10.6 9.1 9.1 21.1 35.8 44.6 51.3 43.9 38.4 27.1 15.7 47.3 Average yield (per cent) on short-, term commitments 2 Govt.-underwritten loans......... 9.12 8.98 8.87 8.78 8.85 8.98 9.13 9.29 9.25 9.14 9.06 9.07 Conventional loans................... 9.39 9.20 9.04 8.96 9.00 9.13 9.26 9.43 9.41 9.26 9.21 9.18 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) Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, Holder 1973 1973 1974 1974 1974 1974 1975 All holders....................................................... 133.8 135.0 136.7 137.8 138.6 140.3 142.0 FHA.............................................................. 85.6 85.0 85.0 84.9 84.1 84.1 84.3 VA................................................................. 48.2 50.0 51.7 52.9 54.5 56.2 57.7 Commercial banks......................................... 11.7 11.5 11.1 11.0 '•10.7 r10.4 10.5 FHA.............................................................. 8.4 8.2 7.8 7.6 7.4 6.5 7.2 VA................................................................. 3.3 3.3 3.3 3.4 r3.3 3*2 3.3 Mutual savings banks.................................... 28.6 28.4 28.2 27.9 r27.8 r27.5 27.6 FHA.............................................................. 15.7 15.5 15.3 15.1 r15.0 r14.8 14.8 VA................................................................. 12.9 12.9 12.9 12.8 12.8 r12.7 12.8 Savings and loan assns.................................. V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) 30.1 1 29.7 } 29.8 1 29.7 } 29.8 } 29.8 } 29.8 Life insurance cos........................................... 13.7 13.6 13.3 13.1 12.9 12.7 12.5 FHA.............................................................. 9.3 9.2 9.0 8.8 8.7 8.6 8.4 VA................................................................. 4.5 4.4 4.3 4.3 4 2 4.2 4.1 Others............................................................... 50.0 52.1 54.3 56.1 57.4 r59.9 61.6 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 Period Number co a m m m ou it n te t d Loan Contract Loanof loans (m ( i d l o li l o la n r s s ) of ( o th a f m o d u o o s l u l a a n n r t d s ) s (p in e r t r a e c t r e e e s n t t ) (y M rs a . t /m ur o it s y .) (p to e r r - a v t c i a e 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 t r i 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 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 1975—Jan.. 31 43.8 1,414 10.44 18/4 71.9 11.0 1.33 11.9 Feb.. 46 94.6 2,057 10.08 22/11 74.3 10.9 1.34 11.0 Mar. 46 109.6 2.382 10.37 23/1 74.1 11.3 1.34 11.3 See Note on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 cards 2 196 5 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 196 6 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 196 7 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 196 8 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 196 9 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5.936 1,437 6,921 197 0 127,163 102,064 35,184 31,465 5,070 30,345 25.099 9,675 6,163 1,805 7,456 197 1 138,394 111,295 38,664 34,353 5,413 32,865 27.099 10,585 6,397 1,953 8,164 197 2 157,564 127,332 44.129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 197 3 180,486 147,437 51.130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 197 4 190,121 156.124 51.689 52.009 8,162 44.264 33.997 12.979 8,012 2,122 10.884 1974—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 Apr. 184,344 151,271 50,360 49,247 7,880 43,784 33,073 12,526 6,735 2,062 11 ,750 May, 185,010 151,610 50,465 49,329 7,908 43,908 33,400 12,443 7,268 2,073 11,616 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment PurchaCsereddit DirecOtther Mobilleoans Check Other loans homes cards credit 196 5 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 196 6 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 196 7 40,630 33,152 10,972 6,232 5,469 2,731 7,'748 7,478 196 8 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 196 9 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 197 0 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 197 1 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 197 2 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 197 3 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 197 4 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—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 Apr. 81,155 70,134 17,613 11,387 7,417 7,909 6,312 4,318 2,411 12,767 11,021 May 81,066 70,130 17,529 11,417 7,391 7,903 6,373 4,353 2,383 12,781 10,936 See Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT □ JULY 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 lenders i dealers outlets Mobile Other loans homes 1965......................... 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 1966......................... 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 1967......................... 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 1968......................... 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 1969......................... 27,846 9,412 5,'775 174 12,485 13,722 12,028 1,694 13,116 250 12,866 1970......................... 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 1971......................... 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 1972......................... 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 1973 ......................... 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 1974......................... 38,925 12,435 3,570 4,751 993 17,176 25,216 22,116 3,100 19,473 286 19,187 1974—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 Apr............... 37,746 12,349 3,513 4,366 867 16,651 25,623 22,415 3,208 17,768 275 17,493 May............. 37,711 12,406 3,507 4,315 833 16,650 25,917 22,674 3,243 17,852 275 17,577 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—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 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 19.80 21.09 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 13.59 20.00 20.83 Apr............. *•11.44 11.78 13.22 M3.55 rl 7.17 13.07 17.58 May........... 11.39 11.57 13.11 13.41 17.21 13.09 17.65 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

JULY 1975 □ CONSUMER CREDIT A 47 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) Type Holder Period Total Automobile Other Home Personal Commercial Finance Other Retail paper consumer improve­ loans banks companies financial outlets goods paper ment loans lenders Extensions 1967............................. 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 1968............................. 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 1969............................. 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 1970............................. 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 1971............................. 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 1972............................. 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 1973............................. 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1974............................. 166,478 42,756 71,077 4,650 47,995 69,554 41,809 24,510 30,605 1974—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 Apr.................. 13,181 3,454 5,584 313 3,830 5,457 3,145 2,142 2,437 May................. 13,149 3,467 5,757 334 3,591 5,473 2,985 2,032 2,659 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—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 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 Apr.................. 13,423 3,719 5,632 369 3,703 5,769 3,263 1,947 2,444 May................. 13,274 3,625 5,694 349 3,606 5,737 3,169 1,894 2,474 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—May................. 1,262 168 549 153 392 450 304 285 223 June................. 1,086 154 428 90 414 512 324 205 45 July................. 1,325 249 554 96 426 588 172 382 183 Aug................. 1,512 444 549 79 440 571 310 439 192 Sept.................. 677 231 235 23 188 242 37 356 42 Oct................... 402 -101 449 27 27 58 -21 198 167 Nov.................. -400 -361 139 -4 -174 -281 -158 3 36 Dec.................. -814 -463 -239 -47 -65 -791 -68 79 -34 1975—Jan................... -401 -186 -119 -47 -49 -301 -263 221 -58 Feb................... 237 251 -71 -48 105 -98 61 280 -6 Mar.................. -437 -353 -173 -18 107 -567 -99 262 -33 Apr.................. -242 -265 -48 -56 127 -312 -118 195 -7 May................. -125 -158 63 -15 -15 -264 -184 138 185 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. □ JULY 1975 MARKET GROUPINGS (1967 = 100) 1967 pro- 1974 1974 1975 aver­ Grouping tion age June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May* June® 100.0 124.8 125.8 125.5 125.2 125.6 124.8 121.7 117.4 113.7 Ill .2 110.0 11 AUO7 .7O 1i vAOy . £0 110.0 62.21 123.1 124.0 174.0 123.5 123.6 122.9 121.4 118.7 115.4 113.7 112.4 1l1lj1. nu 1li1z0 . y0 113.1 4 28 8 . . 5 9 3 5 1 1 2 28 1 . . 8 7 1 1 2 30 2 . . 2 6 n 17 o ? ,8 o 1 1 2 2 2 9 . . 1 8 1 1 2 2 2 8 . .8 6 1 1 2 2 2 8. . 2 3 1 1 2 26 0 . . 3 9 1 1 1 2 8 3 . . 2 4 1 12 1 0 4 . . 1 9 1 1 1 1 3 8 . . 3 8 1 1 1 1 2 8 . . 2 2 1 1 1 1 1 1 '2 9 y . . 3 7*j 1 1 1 2 3 0 . . 1 7 1 1 1 2 3 1 . . 2 7 20.42 111 .7 112.0 113,0 111.4 113.8 114.0 113.2 110.7 107.8 105 3 103.9 103.3 102.4 101.4 3 1 7 3 . . 7 2 9 6 1 1 2 28 7 . . 3 4 1 1 2 2 8 8. . 9 8 1 1? 2 7 8 . , 0 8 1 1 2 2 8 8 . . 5 6 1 1 2 2 9 7 . . 3 6 1 1 2 2 8 5 . . 1 3 1 1 2 2 2 3 . . 1 0 1 12 1 0 4 . . 5 8 1 1 1 1 0 7 . .6 5 1 1 1 0 5 7 .’ .4 2 1 1 0 1 5 2 . . 9 7 1 1 0 1 5 3 . . 1 9 1 1 0 1 4 2 . .4 4 1 1 0 1 5 2 . . 1 5 Consumer goods 2 7 . .8 8 6 4 1 1 2 1 7 0 . . 9 0 1 1 3 1 3 7. . 3 5 1 1 1 3 3 1 . . 5 6 1 1 3 1 1 4 . . 8 9 1 1 2 1 9 1 . . 1 6 1 1 2 1 6 4 . . 5 7 1 10 1 2 9 . . 1 7 1 8 1 7 0 . . 5 1 1 8 0 0 4 . . 3 0 1 7 0 8 1 . . 2 0 1 8 0 6 3 . .1 8 1 Q7 0 ' jX 7 • . 8 O 1 0 0 7 9 .9 7 1 11 7 Uf 11 \7 7 Z 1 . . 0 £O O Autos................................................ 1.87 94.9 99.6 101.5 103.1 99.6 108.4 91.0 69.8 62.6 58.9 73.1 82.4 86.3 93.2 Auto parts and allied goods..... .97 139.0 151.3 136.9 137.6 134.5 126.9 123.6 121.5 114.4 115.5 113.2 115.1 118.1 120.8 Appliances, TV, and radios............. 5 1 . .4 0 1 2 1 1 3 3 2 8 . . 0 0 1 1 4 4 1 2. , 7 2 1 14 39 1 . . 3 8 1 13 4 9 1 . . 1 2 1 13 3 3 9 . . 2 0 1 1 3 20 3 . . 9 2 1 1 1 2 5 9 . . 3 7 1 1 0 2 2 3 . . 5 0 1 9 1 4 7. . 5 4 1 8 1 9 4 . . 0 0 1 8 1 5 2 . . 0 3 Il 9 lUj 6 . . 7 4 Q 1 1 111 0 7 0 / • . 5 1o 117.0 Appliances and A/C.................. .92 148.8 155.3 151.7 156.2 150.2 139.5 131.9 119.8 108.0 104.8 99.1 114.2 118.9 TV and home audio.................. .49 Carpeting and furniture.................... 1.08 153.5 157.2 157.1 155.4 151.8 144.7 143.8 135.1 132.3 127.9 127.8 128.3 134.7 137.4 137.3 123.55.38 135.3 132.2 131.4 125.5 123.0 120.1 121.0 1U711 • L7 11Z011 . Q7 120.6 Clothing................................................ 2 4 0 . . 3 6 2 7 1 1 2 0 9 9 . . 2 0 1 1 2 0 9 8. . 9 0 1 1 0 2 8 9 . . 6 4 1 1 2 0 9 6 . . 1 4 1 10 2 6 8 . .7 0 1 1 2 04 8 . . 5 9 1 10 2 3 8 . . 1 8 1 1 2 0 8 2 . . 4 0 1 9 2 5 6 . . 0 3 1 9 2 4 5 . . 5 5 1 9 2 0 4 . .1 9 11 / 8 7J1 9 • . 2 7/ 124 8 IZj .4 Co C n o su n m su e m r e s r t a f p o l o e d s s .. . a .. n ... d .. . t .. o .. b ... a .. c .. c .. o ... . . . . . .. . . 1 8 6 . . 3 3 7 4 1 1 3 2 4 5 . . 5 4 1 1 3 2 4 4 . . 3 7 1 12 3 5 4 . . 5 9 1 1 3 2 5 4 . . 1 4 1 1 3 2 4 4 . . 8 4 1 12 3 5 5 . . 2 4 1 1 2 3 6 5. . 6 2 1 1 3 2 5 5 . . 5 3 1 1 3 2 4 3 . . 5 3 1 1 3 2 3 3 . . 6 2 1 1 3 2 2 0. . 7 7 n 1 Ij 2 oZ 2 . . 2 7! i 1 3 2 3 2 . * 2 2 1 i 3 2 3 1 . . * 4 4 Nonfood staples.............................. 7.98 144.0 144.4 144.7 146.5 145.7 146.1 145.3 146.2 146.4 144.5 145.3 143.5 144.7 146.1 Consumer chemical products.. 2.64 158.4 156.8 154.6 159.0 157.7 159.8 155.2 159.1 160.6 157.1 158.2 157.6 157.6 Consumer paper products........ 1.91 125.2 123.9 124.4 129.5 130.9 128.5 127.4 126.7 122.0 121.9 120.9 117.2 121.4 Consumer fuel and lighting... 3.43 143.8 146.0 148.4 146.2 144.6 145.4 147.9 147.3 149.2 147.2 149.0 147.4 147.6 Residential utilities................ 2.25 153.7 155.3 15/.8 155.4 156.2 155.5 159.3 159.0 159.9 159.7 163.1 160.2 Equipment Bu I s n in d B e u u s s s i t l r d e i q i a n u l g i e p q a m n u e d i n p m m t... i e . n . n . i . n t .. . . g . . . . . . . e . . . . q . . . . u . . . . . i . . . p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 1 2 . . . 7 4 7 7 5 4 1 1 1 2 2 3 8 9 6 . . . 7 4 0 1 1 1 3 2 3 0 9 7 . . . 2 0 4 1 1 1 3 3 3 0 1 6 . . . 3 3 2 1 1 1 2 2 36 8 9 . . . 5 6 8 1 1 1 3 3 3 2 2 9 . . . 3 8 0 1 1 1 3 3 4 0 2 1 . . . 9 0 2 1 1 14 3 2 0 9 1 . . . 1 3 0 1 1 1 2 2 3 7 6 7 . . . 1 7 4 1 1 1 2 2 3 2 2 8 . . . 9 3 4 1 1 1 2 3 19 0 7 . . . 3 4 0 1 1 1 1 1 3 7 8 7 . . . 8 0 7 1 1 1 1 1 3 5 2 6 . . . 8 3 4 1 1 1 1 1 3 4 1 4 . . . 6 8 6 1 1 1 1 2 1 3 6 2 . . . 8 9 6 P M o a w n e u r f a e c q t u u i r p in m g e e n q t. u .. i .. p .. m .... e .. n .. t .. . . . .. . .. . .. . .. . . 3 1 . . 8 4 5 7 1 12 3 1 9 . . 7 9 1 12 3 1 9 . . 9 0 1 12 3 4 8 . . 9 4 1 12 3 3 9 . . 1 6 1 1 4 2 4 4 . . 2 4 1 1 2 4 2 2 . . 5 8 1 1 4 1 4 9 . . 5 4 1 1 1 4 6 2 . . 5 6 1 1 1 3 1 6 . . 8 6 1 13 0 2 9 . . 1 4 1 13 0 1 6 . . 8 6 1 1 2 0 8 5 . . 9 5 1 12 0 7 3 . . 3 2 1 1 0 2 2 6 . . 3 8 Co C m o m m e m rc e i r a c l i , a t l r e a q n u si i t p , m fa e r n m t. .. e .. q .. u ... i . p ... . . . . . . 5 3 . . 9 3 7 0 1 1 4 3 1 0 . .1 3 1 14 31 2 . . 5 7 1 1 3 4 2 3 . . 5 5 1 1 2 3 7 4 . . 6 0 1 1 4 3 3 2. .3 8 1 14 3 4 3 . . 1 2 1 1 4 3 3 2 . . 1 9 1 1 3 2 9 7 . . 3 6 1 12 3 1 5 . . 6 2 1 1 1 3 8 0 . . 0 4 1 1 1 2 5 7 . . 1 8 1 1 1 2 5 4 . . 1 3 1 1 2 1 1 4 . . 7 7 1 12 1 0 4 . . 2 5 T Fa ra rm ns i e t q e u q i u p i m pm en e t n ... t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. . 0 67 0 1 1 3 0 8 9 . . 7 6 1 1 1 4 0 0 . . 4 6 1 1 1 4 1 1 . . 4 4 1 15 0 0 9 . . 5 3 1 1 4 1 4 1 . . 1 8 1 11 4 1 5 . . 2 4 1 1 0 5 9 1. . 9 8 1 14 0 3 2 . . 7 9 1 9 4 1 3 . . 8 8 1 9 3 1 5 . . 5 9 1 8 3 8 0 . . 8 2 1 9 3 2 5 . . 9 7 1 9 3 7 0 . . 9 3 100.6 De M fen il s it e a r a y n d p r s o pa d c u e c t e s q .. u .. i . p ... m ... e .. n .. t . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . 5 7 . . 1 6 5 8 8 8 2 1. . 2 3 7 8 9 1 . . 7 7 8 8 2 1 . . 6 4 8 81 2 . . 5 7 8 8 3 2 . . 1 3 8 8 4 2. . 5 1 8 8 3 1. . 8 7 8 8 3 1. . 3 4 8 81 3 . . 5 8 8 8 0 2 . . 7 4 8 8 2 0 . . 1 3 8 ofiUn 2 . . 4 7/ 8 8 2 1 . . 1 1 O% oQU A l1 . • 4 J A 3 Intermediate products Construction products........................... 5.93 129.6 129.6 128.2 128.0 127.4 123.5 121.3 118.3 115.7 112.1 109.1 110.4 107.0 106.5 Misc. intermediate products................. 7.34 127.3 128.4 127.5 129.2 127.8 126.8 124.2 122.5 119.2 118.4 115.6 116.8 116.7 Materials Durable goods materials......................... 20.91 127.3 127.5 125.8 128.1 129.2 129.3 123.5 114.2 110.3 107.0 104.7 101.5 99.4 98.8 Consumer durable parts................... 4.75 112.1 114.1 117.2 117.5 117.2 115.2 104.1 91.7 83.7 82.1 84.7 85.7 86.7 90.2 Equipment parts................................. 5.41 123.8 122.1 120.6 125.8 125.0 124.0 122.2 118.3 116.9 112.0 108.7 104.6 102.2 99.0 Durable materials nec....................... 10.75 135.9 136.2 132.3 133.9 136.6 138.3 132.7 122.9 118.8 115.4 111.4 106.9 103.6 102.6 Nondurable goods materials.................. 13.99 128.5 131.3 131.1 130.4 129.3 126.8 122.1 116.2 109.2 105.7 105.3 107.9 109.4 111.8 Textile, paper, and chem. mat........ 8.58 139.8 143.6 143.6 143.2 142.2 138.1 131.1 122.9 112.9 108.5 106.2 110.3 112.5 116.1 Nondurable materials n.e.c.............. 5.41 110.6 111.9 111.3 110.0 108.9 108.9 107.8 105.7 103.3 101 .1 103.9 103.9 104.7 105.0 Fuel and power industrial................... 2.89 122.6 126.3 128.0 123.5 129.0 126.4 112.7 113.0 117.8 118.2 118.0 117.3 117.5 119.1 Supplementary groups Home goods and clothing..................... 9.34 124.6 127.1 126.4 125.0 123.8 120.0 117.4 113.2 107.1 105.0 102.3 103.6 106.0 107.0 Containers................................................ 1.82 139.4 141.6 142.1 140.4 136.7 131.5 127.6 120.3 126.1 119.9 122.3 124.2 123.8 Gross value of products in market structure (In billions of 1963 dollars) Products total.......................................... 286.3 449.7 448.1 446.9 447.1 445.7 439.0 426.7 416.4 410.1 405.1 409.1 407.0 411.1 Final products.................................... 221.4 347.7 346.6 345.0 346.1 346.5 341.3 331.0 322.3 317.7 315.3 318.2 317.8 321.6 Consumer goods...................... 156.3 236.6 235.0 235.1 233.1 233.7 228.9 222.3 216.4 213.7 213.2 216.7 216.8 220.8 Equipment....................................... 65.3 111.2 111.6 109.9 112.8 112.7 112.4 108.8 105.9 103.9 102.2 101.7 101.1 100.9 Intermediate products....................... 64.9 102.0 101.2 102.1 101.0 99.4 97.4 95.8 94.3 92.3 90.0 90.8 89.3 89.4 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ 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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP June* Manufacturing.......................................... 88.55 124.4 125.6 125.2 125.2 125.5 124.6 120.9 116.1 111.7 109.2 107.7 107.7 107.4 107.8 Durable................................................. 52.33 120.7 122.1 121.6 121.6 122.1 121.6 117.9 112.2 108.2 104.8 103.5 103.1 102.0 101.7 Nondurable.......................................... 36.22 129.7 130.8 130.8 130.4 130.5 128.9 125.4 121 .9 117.0 115.6 113.7 114.3 115.3 116.6 Mining and utilities................................ 11.45 127.3 128.1 128.9 127.4 128.7 128.5 125.9 125.7 127.0 127.3 128.8 128.2 127.1 127.9 Mining.................................................. 6.37 109.3 110.2 110.2 107.3 109.2 110.5 105.0 104.4 107.0 108.6 108.9 108.5 107.7 107.4 5.08 149.9 150.6 152.4 152.6 153.1 151.2 152.3 152.6 153.0 150.9 154.0 153.0 151.7 153.9 Durable manufactures 12.55 127.5 .128.4 126.9 126.5 127.2 127.6 124.4 116.0 112.4 107.7 105.1 103.2 99.7 98.1 Primary metals.................................... 6.61 124.1 124.7 123.2 121.9 123.0 126.0 121.0 108.6 107.2 102.1 98.1 95.0 89.4 86.1 Iron and steel, subtotal................. 4.23 119.9 118.5 119.9 120.7 119.1 123.9 117.7 107.9 110.6 105.0 103.1 99.4 89.6 85.0 Fabricated metal products............... 5.94 131.4 132.5 131.1 131.5 132.0 129.6 128.2 124.1 118.2 11.3.7 112.9 112.3 111.3 111.3 Machinery and allied goods................... 32.44 116.3 117.7 117.3 117.8 118.8 118.4 114.9 109.6 105.4 102.4 101.5 101.6 101.4 101.4 Machinery............................................ 17.39 128.1 130.4 129.9 130.5 132.5 131.1 128.9 124.8 119.6 115.6 112.2 110.3 109.1 107.5 Nonelectrical machinery............... 9.17 133.8 131.7 131.1 136.4 137.8 137.4 135.1 132.5 126.7 123.6 119.3 116.0 114.0 111.1 Electrical machinery...................... 8.22 125.2 129.0 128.4 123.7 126.4 124.0 121.7 116.3 111 .5 106.6 104.3 104.0 103.6 103.4 Transportation equipment............... 9.29 96.9 99.4 98.7 99.9 100.4 102.1 93.7 83.6 78.9 77.1 81.0 84.8 87.0 89.7 Motor vehicles and parts............. 4.56 113.2 116.9 117.3 117.8 118.6 123.0 107.1 86.4 78.2 77.6 85.4 93.4 94.8 100.6 Aerospace and misc. trans. eq... 4.73 81.1 82.6 80.9 82.6 82.8 81.9 80.9 80.9 79.5 76.6 76.7 76.6 79.5 79.2 Instruments.......................................... 2.07 143.9 147.5 146.7 146.7 144.9 142.0 142.3 139.5 139.1 134.2 130.6 131.1 130.0 129.8 Ordnance, private and Govt............ 3.69 86.1 86.4 87.2 87.1 87.5 87.2 86.6 86.6 86.2 86.9 86.7 86.7 85.9 86.1 Lumber, clay, and glass......................... 4.44 123.6 126.4 125.5 123.4 120.6 117.8 113.7 111.0 109.6 104.6 102.6 103.4 103.9 103.8 Lumber and products....................... 1.65 120.1 125.6 121.6 121.5 116.6 109.3 105.2 101.3 99.9 99.6 99.8 102.0 106.9 Clay, glass, and stone products.... 2.79 125.7 126.9 127.7 124.6 123.0 122.9 118.8 116.9 115.3 107.8 104.2 104.2 102.1 Furniture and miscellaneous.................. 2.90 136.1 138.5 139.7 140.1 138.8 136.7 129.0 128.4 120.0 119.6 118.7 117.7 117.9 118.0 Furniture and fixtures....................... 1.38 126.9 131.1 131.6 130.5 129.4 125.5 120.5 120.4 110.6 110.6 106.7 105.9 106.3 Miscellaneous manufactures............ 1.52 144.4 145.3 147.1 148.8 147.5 146.9 136.9 135.7 128.9 128.0 129.7 128.5 128.5 Nondurable manufactures Textiles, apparel, and leather............... 6.90 108.9 108.5 108.1 107.4 106.5 105.1 101.9 96.3 88.9 89.6 87.5 90.2 93.9 96.1 Textile mill products......................... 2.69 \22.1 125.1 125.3 124.3 121.9 119.1 112.8 102.9 95.6 93.3 96.8 100.1 104.1 Apparel products................................ 3.33 105.4 102.1 102.7 102.5 102.5 102.8 100.1 98.0 94.0 92.6 86.4 88.1 Leather and products........................ .88 77.3 81.6 75.7 73.4 74.2 70.6 74.7 69.7 66.1 66.7 63.5 68.0 69.4 Paper and printing.................................. 7.92 121.0 122.3 122.4 121.0 122.7 120.8 115.7 112.3 108.2 106.6 104.2 102.4 102.9 103.6 Paper and products............................ 3.18 134.0 136.7 136.1 132.2 135.3 133.9 124.3 116.1 114.3 109.5 104.5 105.6 105.3 Printing and publishing..................... 4.74 112.3 112.7 113.4 113.4 114.4 111.9 110.0 109.8 104.1 104.7 104.0 100.2 101.4 ’ioi *9 Chemicals, petroleum, and rubber.... 11.92 151.7 153.7 153.9 154.4 154.7 152.4 146.5 141.6 136.5 132.4 130.2 129.9 131.6 132.8 Chemicals and products................... 7.86 154.3 156.9 155.8 156.7 158.3 155.9 148.3 143.1 139.0 134.6 133.6 133.0 134.5 135.4 Petroleum products........................... 1.80 124.0 126.2 127.9 125.8 121.9 125.4 127.0 125.8 126.8 123.7 120.1 118.8 119.2 121.5 Rubber and plastics products...... 2.26 164.4 164.5 167.2 169.0 168.6 161.8 155.7 148.9 135.4 132.0 126.8 128.0 131.7 Foods and tobacco.................................. 9.48 124.8 125.3 124.8 124.8 124.3 123.7 123.8 123.5 120.0 121.3 120.0 122.1 121.0 122.0 Foods.................................................... 8.81 126.2 127.1 126.6 126.3 125.7 124.8 125.4 125.7 121.2 122.3 121.3 122.6 121.5 122.6 Tobacco products............................... .67 106.4 102.9 101.5 104.2 106.0 110.3 103.8 96.2 104.7 108.4 102.6 115.9 Mining Metal, stone, and earth minerals.......... 1.26 117.2 112.4 113.5 109.9 115.4 121.3 120.7 117.9 119.1 116.2 113.4 113.3 108.0 102.5 Metal mining...................................... .51 129.2 121.1 120.3 110.0 130.5 141.4 136.8 134.7 133.8 131.1 125.4 125.8 117.2 Stone and earth minerals ............... .76 109.1 106.4 108.8 109.9 105.0 107.5 109.8 106.4 109.0 106.1 105.1 104.7 101.9 5.11 107.3 109.7 109.4 106.7 107.7 107.8 101.2 101.1 103.9 106.8 107.7 107.4 107.6 108.7 Coal...................................................... .69 105.1 118.3 115.6 99.4 112.1 110.3 67.6 85.3 111 .3 117.5 117.4 112.2 119.6 128.4 Oil and gas extraction....................... 4.42 107.7 108.4 108.4 107.9 107.1 107.4 106.4 103.6 102.9 105.0 106.1 106.7 105.7 105.7 Utilities Electric..................................................... 3.90 159.5 160.3 162.7 162.8 162.4 161.2 162.9 163.0 162.5 161 .1 165.4 164.0 Gas .......................................... 1.17 117.9 Note.—Data for the complete year of 1972 are available in a pamphlet Published groupings include series and subtotals not shown sepa- Industrial Production Indexes 1972 from Publications Services, Division rately. Figures for individual series and subtotals are published in the of Administrative Services, Board of Governors of the Federal Reserve monthly Business Indexes release. System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 BUSINESS ACTIVITY; CONSTRUCTION □ JULY 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Period Products tion struc­ tural Total Whole­ Total in mfg. tion em­ Em­ Pay­ retail Con­ sale (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 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70. 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 197 3 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 197 4 124 123.1 121.7 128. 111.7 128.3 127.4 124.4 78.9 168.6 118.9 102.1 156.6 147.7 160.1 1974—May. 125.7 123.8 122.4 129.7 112.2 129.2 129.1 125.7 Urso.l 188.0 119.0 103.0 156.2 172 145.5 155.0 June, 125. 124.0 122.6 130.2 112.0 128.9 128.8 125.6 166.0 119.1 103.2 157.9 170 146.9 155.7 July. 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 119.2 103.0 159.5 177 148.0 161.7 Aug. 125.2 123.5 122.1 129.8 111.4 128.6 128.5 125.2 79.4 170.0 119.4 102.6 161.5 180 149.9 167.4 Sept. 125.6 123.6 122.6 128.8 113.8 127.6 129.3 125.5 187.0 119.7 102.5 162.0 176 151.7 167.2 Oct.. 124. 122.9 122.3 128.2 114.0 125.3 128.1 124.6 148.0 119.8 101.7 162.1 175 153.0 170.2 Nov. 121.7 121.4 120.9 126.3 113.2 123.0 122.1 120.9 75.7 154.0 119.1 99.4 157.0 170 154.3 171.9 Dec., 117.3 118.7 118.2 123.4 110.7 120.5 114.8 116.1 176.0 118.0 96.3 152.6 171 155.4 171.5 1975—Jan.. 113.7 115.4 114.9 120.1 107. 117.6 110.5 111.7 135.0 117.3 93.6 148.9 176 156.1 171.8 Feb.. 111 .2 113.7 113.3 118.8 105.3 115.2 107.4 109.2 68.2 135.0 116.5 90.8 143.0 179 157.2 171 .3 Mar. 110.0 112.4 112.2 118.2 103.9 112.7 105.9 107.7 153.0 116.0 89.9 142.8 176 157.8 170.4 Apr., 109.9 113.0 112.7 119.3 103.3 113.9 105.1 107.7 189.0 115.9 89.6 144.1 179 158.6 172.1 May, 109.6 112.9 113.1 120.7 102.4 112.4 104.4 107.4 66.5 182.0 116.1 89.9 143.9 183 159.3 173.2 June, 110.0 113.1 113.2 121.7 101.4 112.5 105.1 107.8 116.1 90.0 145.6 185 173.7 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 second 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total construction contracts 1......... 99,304 93,07610,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 6,574 9,598 9,143 By type of ownership: Public............................................ 26,563 32,209 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 2,182 2,768 2,875 Private 1....................................... 72,741 60,867 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 4,393 6,830 6,268 By type of construction: Residential building 1............... 45,696 34,174 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 2,316 3,029 3,073 Nonresidential building............ 31,534 33,859 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 2,402 2,987 2,877 Nonbuilding................................ 22,074 25,042 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 1,856 3,582 3,193 Private housing units authorizedr.. 1,820 1,074 1,159 1,115 1,040 928 853 811 770 837 689 701 677 837 909 (In thousands, S.A., A.R.) i Because of improved procedures for collecting data for 1 -family homes, NorE.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im­ McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data 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

JULY 1975 o CONSTRUCTION A 51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 2 Nonresidential Period Total Resi­ Buildings Mili­ High­ C v o a n ti s o e n r­ Total dential Total Indus­ Com­ b O u t i h l e d r ­ Other Total tary way de m v a e e n n l d o t p­ Other trial mercial ings * 1966 ............................... 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 ................................ 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 ................................ 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 ............................... 93,728 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 1970................................ 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 15,489 1971................................. 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 1972................................ 124,077 93,893 54,288 39,605 4,676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 1973................................ 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 1974................................. 134,814 96,388 55,020 41,368 7,745 16,029 5,951 11,643 38,426 1,188 12,105 2,781 22,352 1974—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.r................. 133,028 94,728 46,005 48,723 7,677 15,668 5,776 19,602 38,300 1,173 13,334 2,886 20,907 Oct.r................... 133,882 95,016 44,132 50,884 8,294 16,300 5,799 20,491 38,866 1 ,062 12,566 3,070 22,168 Nov.r................. 130,991 93,390 42,205 51 ,185 8,670 16,037 5,854 20,624 37,601 1,053 10,842 2,871 22,835 Dec.r.................. 133,102 91,206 40,466 50,740 8,774 15,372 5,781 20,813 41,896 1,144 12,210 3,446 25,096 1975—Jan.r................... 131,559 89,774 38,922 50,852 8,525 15,053 5,779 21,495 41 ,785 1 ,305 12,718 2,974 24,788 Feb.r.................. 128,909 88,614 38,153 50,461 8,734 15,249 5,844 20,634 40,295 1 ,440 Mar.r................. 124,352 85,040 37,257 47,783 7,981 13,289 5,382 21,131 39,312 1 ,520 Apr.r.................. 120,992 83,408 36,720 46,688 7,375 12,677 5,682 20,954 37,584 1,443 May*.................. 122,416 83,954 37,435 46,519 8,441 12,512 5,203 20,363 38,462 1,243 1 Includes religious, educational, hospital, institutional, and other build- Note.—Census Bureau data; monthly series at seasonally adjusted ngs. annual rates. 2 By type of ownership, State and local accounted for 86 per cent of public construction expenditures in 1974. 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 famiiy family family For sale For Sold (end of Sold sale per­ iod) 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 i ,320 859 461 318 490 218 24.7 24.6 1969 r.......................................... 1,467 811 656 1,399 807 591 885 350 536 413 448 228 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 1,047 1,971 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 1974r.......................................... 1,337 888 450 1,692 931 760 1,193 518 676 371 501 407 35.9 36.2 1974—May............................... 1,467 925 542 1,660 889 771 1,512 594 918 407 569 444 35.7 34.7 Juner............................. 1,533 1,000 534 1,805 1,053 752 1,480 581 899 398 524 436 35.1 35.0 Julyr.............................. 1,314 920 394 1,655 934 721 1,443 578 864 340 509 430 36.8 35.3 Aug.r............................. 1,156 826 329 1,592 919 674 1,406 570 836 316 466 425 35.7 35.5 Sept.r............................ 1,157 845 313 1,562 899 663 1,372 565 807 252 495 414 36.2 35.7 Oct.................................. 1,106 792 314 1,627 908 719 1,322 553 769 217 433 409 37.2 35.9 Nov................................ 1,017 802 215 1,657 893 763 1,255 541 714 195 435 404 37.3 36.0 Dec................................. 880 682 198 1,606 852 754 1,229 545 684 195 382 400 37.4 36.2 1975—Jan.r.............................. 999 739 260 1,535 964 571 1,176 522 654 185 404 404 37.2 36.4 Feb.'.............................. 1,000 733 267 1,320 770 550 1,156 522 634 219 412 409 38.0 36.6 Mar.r............................. 985 775 210 1,292 721 571 1,111 519 592 199 464 395 38.7 36.5 Apr................................. 986 770 216 1,173 724 449 1,086 516 570 194 580 386 39.5 36.7 May*............................. 1,126 886 240 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 o JULY 1975 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n 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 ) a n - 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 ra r m e t c e n p e 2 t l n o t y ; ­ Total In c n u o lt n u a r g al r i- In ployed S.A.) agriculture industries 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—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 May................ 153,051 59,101 95,121 92,940 84,402 80,890 3,512 8,538 9.2 June................ 153,278 57,087 94,518 92,340 84,444 81,140 3,304 7,896 8.6 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 r n a u c c t ­ Tr ti a p o n u n s b p a l o i n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 1969............................................................... 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 1972............................................................... 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973............................................................... 76,833 20,054 638 4,028 4,646 16,665 4,075 12,986 13,742 1974............................................................... 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 SEASONALLY ADJUSTED 1974—June.................................................. 78,421 20,184 669 3,994 4,698 17,031 4,156 13,488 14,201 July................................................... 78,479 20,169 675 3,920 4,693 17,107 4,157 13,516 14,242 Aug................................................... 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 Sept................................................... 78,844 20,112 682 3,939 4,679 17,166 4,176 13,647 14,443 Oct.................................................... 78,865 19,982 692 3,911 4,699 17,160 4,185 13,705 14,531 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 Dec................................................... 77,690 19,146 662 3,798 4,668 16,912 4,182 13,734 14,588 1975—Jan.................................................... 77,227 18,718 700 3,789 4,607 16,863 4,173 13,747 14,630 Feb................................................... 76,708 18,297 702 3,596 4,561 16,832 4,164 13,771 14,785 Mar................................................... 76,368 18,146 706 3,486 4,512 16,799 4,157 13,754 14,808 Apr................................................... 76,349 18,090 703 3,475 4,511 16,794 4,163 13,754 14,859 May*................................................ 76,439 18,113 709 3,469 4,497 16,813 4,160 13,775 14,903 June*................................................ 76,464 18,099 713 3,417 4,495 16,858 4,164 13,798 14,920 NOT SEASONALLY ADJUSTED 1974—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................................................... 75,755 18,005 691 3,218 4,476 16,509 4,132 13,658 15,066 Apr................................................... 76,134 17,967 697 3,333 4,479 16,664 4,146 13,768 15,080 May*................................................ 76,654 18,035 710 3,462 4,497 16,784 4,160 13,885 15,121 June*................................................ 77,291 18,244 729 3,584 4,553 16,934 4,210 13,991 15,046 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

JULY 1975 □ PRICES A 53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m ip e e r - - F c a o o n u i a e d l l l t e r G a i l c n e a i c d s t ­ y o n F i p a n i n e u s g d r h r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o r h v 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\l 90‘.1 87^3 87‘.8 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973............................ 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 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—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 Apr................. 158.6 171 .2 164.7 135.9 179.4 229.0 166.3 156.8 141 .3 146.2 152.1 165.8 149.5 143.5 146.8 May............... 159.3 171.8 165.3 136.4 180.1 230.2 167.3 157.4 141 .8 147.4 152.6 166.8 149.9 143.8 147.1 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 e o s d d d e s d s Total t T e il t e e c x s . , ­ H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b et u e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s, . t­ e c m M a q e h n e r u i y a d n n i ­ p t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i l e n l n i ­ s c ­ ­ T e p m t q r o i a e o u r n n n i t p a s t1 ­ ­ ­ n c M e e o l i l u s a ­ s ­ I960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965................................ 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................ 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968................................ 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970................................ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971................................ 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972................................ 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973................................ 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974................................ 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 1974—June................... 155.7 168.6 157.4 153.6 141.7 146.0 210.5 142.8 135.6 192.2 147.5 174.0 137.2 126.1 152.3 122.8 134.3 July..................... 161.7 180.8 167.6 157.8 142.1 146.6 221.7 148.4 139.5 188.6 153.3 180.3 140.3 128.2 156.4 125.1 135.2 Aug.................... 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.8 157.6 126.7 135.4 Sept.................... 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 Oct...................... 170.2 187.5 183.5 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 Nov.................... 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 Dec..................... 171.5 183.7 188.2 166.1 138.4 143.2 229.0 174.0 149.4 165.4 167.2 184.6 154.0 137.7 164.3 137.0 142.4 1975—Jan...................... 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 Feb..................... 171.3 174.6 182.6 168.4 136.5 141.7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 Mar.................... 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 May................... 173.2 184.5 179.0 170.3 135.2 147.7 238.8 182.1 148.9 183.0 169.8 185.1 160.4 138.6 173.1 139.9 147.5 June................... 173.7 186.2 179.7 170.7 135.9 148.7 243.0 181.2 148.6 181.0 169.8 184.5 161.0 139.0 173.3 140.1 147.5 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME □ JULY 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 Gross national product........................................ 103.1 55.6 124.5 284.8 977.1 1,054.91,158.01,294.91,397.41,358.81,383.81,416.31,430.91,416.6 Final purchases...................................................... 101.4 57.2 120.1 278.0 972.6 1,048.61,149.51,279.61,883.2 1.341.91,370.3 1,407.6 1,413.1 1,435.8 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 913.2 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 123.9 129.5 136.1 120.7 124.9 Nondurable goods........................................... 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 364.4 375.8 389.0 391.7 398.8 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 352.4 363.8 376.2 383.5 389.5 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 210.5 211.8 205.8 209.4 163.1 Fixed investment............................................... 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 193.6 198.3 197.1 191.6 182.2 Nonresidential................................................ 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 145.2 149.4 150.9 151.2 146.9 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 94.2 4.0 .6 3.9 19.4 31.2 42.8 54.0 57.2 46.0 48.4 48.8 46.2 40.4 35.3 Nonfarm.................................................... 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 47.8 48.0 45.4 39.7 34.8 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 -19.2 1.8 -1.4 4.0 6.0 4.3 4.9 7.8 11.4 11.9 13.1 10.4 6.6 17.5 -17.8 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 11.3 -1.5 -3.1 1.9 8.8 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 140.2 131.2 138.5 143.6 147.5 142.2 Imports............................................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.1 119.9 140.0 146.7 145.7 133.4 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 296.3 304.4 312.3 323.8 331.6 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 111.5 114.3 117.2 124.5 126.5 National defense.......................................... 13.8 14.1 74.6 71.2 74.8 74.4 78.7 75.8 76.6 78.4 84.0 84.7 Other.............................................................. 3.1 4.3 21.6 26.5 30.1 32.2 38.2 35.7 37.7 38.8 40 6 418 State and local.................................................. 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 184.8 190.1 195.1 199! 3 205 !l Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3| 722.5 746.3j 792.5 839.2 821.2 830.5 827.1 823.1 804.0 780.0 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business (generally the July issue) and the adjusted totals at annual rates. For back data and explanation of series, Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1974 1975 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974 I II III IV I 86.8 40.3 104.2 241.1 800.5 857.7 946.5 1,065.61,142.51,118.81,130.21,155.51,165.41,150.7 Compensation of employees................................ 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 828.8 848.3 868.2 877.7 875.6 Wages and salaries........................................... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 727.6 744.6 761.5 769.2 765.1 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 591A 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 .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 84.9 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 62.7 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 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 94.3 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 140.7 135.4 139.0 157.0 131.5 101.2 1.4 .5 7.6 17.8 34.8 37.5 41.5 49.8 55.7 52.2 55.9 62.7 52.0 39.0 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 62.3 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 33.8 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 28.5 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 -4.8 -4.9 -7.0 -17.6 -35.1 -27.7 -33.4 -51.2 -28.1 -7.0 Net interest............................................................ 4.7 4.1 3.2 2.0 36.5 41.6 45.6 52.3 61.6 57.5 60.1 62.8 65.9 68.9 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 I Gross national product........................................ 103.1 55.6 124.5 284.8 977.1 1.054.91,158.01,394.91,397.41,358.81,383.81,416.31,430.91,416.6 Less: Capital consumption allowances........... 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 115.8 118.6 120.7 122.9 125.2 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 1.6 Plus: Subsidies less current surplus of gov­ ernment enterprises............................... -.1 .1 .2 1.7 1.1 2.3 .6 -2.9 -2.7 -3.7 -2.4 -2.7 -1.6 Equals: National income..................................... 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.51,118.81,130.21,155.51,165.41,150.7 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 94.3 Contributions for social insurance........ .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 99.1 100.8 103.0 103.2 104.6 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 consumers............................................... 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 43.7 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 33.8 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 96.0 227.6 808.3 864.0 944.91,055.01,150.51,112.51,134.61,168.21,186.91,193.4 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 161.9 168.2 175.1 178.1 178.0 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 1,008.81,015.5 Less: Personal outlavs........................................ 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 866.2 894.9 927.6 922.3 939.5 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 840.6 869.1 901.3 895.8 913.2 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 25.4 Personal transfer payments to for­ eigners .................................................. .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 1.2 1.0 .9 .9 .9 Equals: Personal savipg...................................... 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 75.9 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May* Total personal income............... 1,055.01,150.51,135.21,143.51,159.51,167.21,178.01,185.01,184.51,191.01,191.1 1,193.41,195.71,202.61,211.9 Wage and salary disbursements. 691.7 751.2 745.3 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 763.6 766.0 768.0 772.5 Commodity-producing in­ dustries ............................ 251.9 270.9 270.0 272.6 273.3 276.5 278.3 279.5 272.3 269.3 266.4 260.7 260.5 261.2 261.5 Manufacturing only........... 196.6 211.3 210.1 212.5 214.0 215.5 2H. 8 219.4 214.2 209.7 206.4 202.9 203.1 203.8 204.0 Distributive industries. . .. 165.1 178.9 177.8 179.1 180.8 180.7 183.1 183.8 183.9 183.8 183.2 184.0 183.8 184.3 186.2 Service industries................... 128.2 142.6 141.1 142.6 143.5 144.9 146.4 146.9 147.4 148.3 149.8 151.2 152.6 152.4 153.5 Government............................ 146.6 158.8 156.3 158.9 162.1 159.5 159.9 162.8 164.2 165.2 166.2 167.6 169.2 170.3 171.3 Other labor income................... 46.0 51.4 50.5 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 55.3 55.7 56.2 56.7 Proprietors’ income................... 96.1 93.0 89.9 86.9 90.0 93.1 93.2 91.7 91.6 91.5 88.7 85.0 80.9 83.1 85.1 Business and professional... 57.6 61.2 60.8 61.2 61.9 62.5 62.5 62.5 62.5 62.5 62.7 62.8 62.5 63.0 63.3 Farm......................................... 38.5 31.8 29.1 25.7 28.1 30.6 30.7 29.2 29.1 29.0 26.0 22.2 18.4 20.1 21.8 Rental income............................. 26.1 26.5 26.7 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 27.0 27.0 27.1 27.1 Dividends..................................... 29.6 32.7 32.5 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 33.8 33.7 33.9 34.0 Personal interest income........... 90.6 103.8 102.0 103.5 104.4 105.3 106.9 108.0 109.5 111.1 111.9 112.5 113.3 114.8 116.5 Transfer payments..................... 117.8 139.8 135.8 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.6 165.5 168.3 168.9 169.6 Less: Personal contributions for social insurance........ 42.8 47.9 47.6 47.9 48.5 48.4 48.6 48.9 48.5 48.4 49.5 49.2 49.3 49.4 49.6 Nonagricultural income............. 1,008.01,109.01,096.61,106.81,121.71,126.81,137.41,145.71,145.21,151.41,154.3 1,160.11,166.21,171.1 1,178.5 Agricultural income.................... 47.0 41.5 38.6 36.8 37.1 40.4 40.6 39.3 39.3 39.5 36.8 33.3 29.6 31.5 33.4 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 FLOW OF FUNDS □ JULY 1975 SUMMARY OF FUNDS RAISED 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 Credit market funds raised by nonfinancial sectors 1 Total funds raised by nonfinancial sectors................... 69.9 67.9 82.4 96.0 91.8 98.2 147.4 169.4 187.4 179.6 187.3 172.0 1 2 Excluding equities.................................................... 69.6 66.9 80.0 96.0 87.9 92.4 135.9 158.9 180.1 175.8 181.9 169.7 2 3 U.S. Government............................................................ 1.8 3.6 13.0 13.4 -3.7 12.8 25.5 17.3 9.7 12.0 5.1 18.9 3 4 Public debt securities.................................................. 1 .3 2.3 8.9 10.4 -1 .3 12.9 26.0 13.9 7.7 12.0 3.9 20.2 4 5 Agency issues and mortgages................................... .5 1 .3 4.1 3.1 -2.4 -.1 — .5 3.4 2.0 * 1 .2 -1 .3 5 6 68.1 64.3 69.4 82.6 95.5 85.4 121.9 152.1 177.6 167.6 182.2 153.1 6 7 Corporate equities....................................................... .3 1.0 2.4 * 3.9 5.8 11 .5 10.5 7.2 3.9 5.4 2.3 7 8 Debt instruments.......................................................... 67.9 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 163.8 176.8 150.8 8 Private domestic 9 Nonfinancial sectors.......................................... 65.4 62.7 65.4 79.7 91.8 82.7 117.3 147.8 170.1 152.2 162.3 142.2 9 10 Corporate equities.................................................. * 1 .3 2.4 -.2 3.4 5.7 11 .4 10.9 7.4 4.1 5.6 2.6 10 11 Debt instruments...................................................... 65.4 61.5 63.0 79.9 88.4 77.0 105.8 136.9 162.7 148.1 156.7 139.6 11 12 Debt capital instruments................................... 38.4 38.2 44.5 49.5 49.6 56.7 83.2 93.8 96.1 92.9 99.6 86.1 12 13 State and local obligations........................... 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 13 14 Corporate bonds............................................. 5.4 10.2 14.7 12.9 12.0 19.8 18.8 12.2 9.2 19.7 18.1 21 .3 14 15 Home mortgages............................................. 15.4 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.6 35.8 27.4 15 16 Multifamily residential mortgages............... 3.6 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.8 7.3 8.3 16 17 Commercial mortgages.................................. 4.4 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.5 15.7 7.3 17 18 Farm mortgages............................................... 2.2 1.8 2.3 2. ? 1.9 1.8 2.0 2.6 4.4 4.9 4.5 5.4 18 19 Other debt instruments...................................... 27.1 23.3 18.5 30.4 38.8 20.3 22.6 43.0 66.6 55.2 57.1 53.5 19 20 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 20 21 Bank loans n.e.c.............................................. 13.6 10.9 9.8 13.6 15.5 6.7 7.8 18.9 35.8 27.1 32.6 21 .6 21 22 Open-market paper........................................ -.3 1.1 1 .7 1 .8 3.0 3.0 -1 .2 -.5 - .4 6.4 5.2 7.7 22 23 Other................................................................. 4.1 5.0 2.6 5.0 9.9 4.6 4.8 5.5 8.3 12.1 6.6 17.6 23 24 By borrowing sector:............................................. 65.4 62.7 65.4 79.7 91 .8 82.7 117.3 147.8 170.1 152.2 162.3 142.2 24 25 7.7 6.3 7.9 9.8 10.7 11 .3 17.8 14.2 12.3 16.6 16.4 16.7 25 26 Households........................................................... 28.3 22.7 19.3 30.0 31 .7 23.4 39.8 63.1 72.8 43.5 47.4 39.5 26 27 Farm...................................................................... 3.3 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.8 7.7 7.9 27 28 Nonfarm noncorporate...................................... 5.7 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 7.3 7.2 7.4 28 29 Corporate............................................................. 20.4 25.3 29.6 31 .6 38.9 39.5 46.8 55.3 67.1 77.1 83.6 70.7 29 30 Foreign....................................................................... 2.7 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.4 19.9 10.9 30 31 Corporate equities.................................................. .3 -.3 .1 .2 .5 .1 * -.4 -.2 -.2 -.2 -.3 31 32 Debt instruments...................................................... 2.4 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 20.1 11.2 32 33 Bonds.................................................................... .5 .7 1 .2 1.1 1 .0 .9 .9 1 .0 1 .0 2.2: 2.1 2.3 33 34 Bank loans n.e.c.................................................. .5 -.2 -.3 -.5 -.2 -.3 1 .6 2.9 2.8 4.8 9.6 -.1 34 35 Open-market paper............................................ -.1 -.1 .5 -.2 .3 .8 .3 -1 .0 2.2 7.0 6.9 7.2 35 36 U.S. Government loans.................................... 1 .5 1.3 . 2.6 2.2 2.1 1.3 1 .8 1 .8 1.7 1 .7 1.5 1 .8 36 37 Memo: U.S. Govt, cash balance................................. -1 .0 -.4 1 .2 -1.1 .4 2.8 3.2 -.3 -1 .7 -4.6 -2.0 -7.1 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 95.5 144.2 169.7 189.0 184.2 189.3 179.1 38 39 By U.S. Government.................................................. 2.8 4.0 11.8 14.6 -4.1 10.0 22.3 17.6 11 .4 16.6 7.1 26.0 39 Credit market funds raised by financial sectors 1 13.3 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.2 40.8 35.5 1 2 Sponsored credit agencies.......................................... 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 21A 2 3 U.S. Government securities................................. 1 .9 5.1 -.6 3.2 9.1 8.2 3.8 6.2 19.6 21 .4 16.8 26.0 3 4 Loans from U.S. Government............................. .2 -.2 -.1 .2 -.3 .7 1 .4 4 5 Private financial sectors............................................. 11 .2 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 16.1 24.1 8.1 5 6 Corporate equities.................................................. 3.2 3.7 3.0 6.4 6.1 4.6 3.3 2.4 .8 2.0 .5 3.6 6 7 Debt instruments...................................................... 7.9 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.1 23.6 4.6 7 8 Corporate bonds................................................. 2.7 .9 1 .3 1.1 1 .5 3.1 5.1 7.0 2.3 1 .4 2.0 .8 8 9 Mortgages............................................................. * -.9 1 .0 .4 .2 .7 2.1 1 .7 -1 .2 -1.3 .1 -2.8 9 10 Bank loans n.e.c.................................................. 2.3 -1 .0 -2.0 2.5 2.3 -.5 3.0 6.8 13.5 7.2 8.9 5.6 10 11 Open-market paper and RP’s.......................... 2.3 3.3 1 .9 3.6 10.7 -5.0 1.8 4.9 9.8 .1 5.8 -5.5 11 12 Loans from FHLB’s.......................................... .7 .9 -2.5 .9 4.0 1 .3 -2.7 * 7.2 6.7 6.8 6.5 12 13 13.3 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.2 40.8 35.5 13 14 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 27.4 14 15 Private financial sectors............................................. 11 .2 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 16.1 24.1 8.1 15 16 Commercial banks.................................................. 1 .8 -.1 .1 1 .2 1..4 -3.1 2.5 4.0 4.5 -1.9 2.6 -6.4 16 17 Bank affiliates.. . . ............... 4.2 -1 .9 -.4 .7 2.2 2.4 4.1 .7 17 18 Foreign banking agencies...................................... * .1 * .1 .2 .1 1.6 .8 5.1 2.9 2.7 3.1 18 19 Savings and loan associations............................. .8 .1 -1 .7 1.1 4.1 1.8 -.1 2.0 6.0 6.3 8.6 4.0 19 20 Other insurance companies.................................. .1 .1 .1 .2 .5 .4 .6 .5 .5 .4 .4 .3 20 21 Finance companies................................................. 5.2 3.1 1 .2 5.7 8.3 1 .6 4.2 9.3 9.4 3.9 3.6 4.1 21 22 REITS....................................................................... .7 1 .3 2.7 3.0 6.1 6.3 1.2 2.8 -.5 22 23 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 23 Total credit market funds raised, all sectors, by type 1 83.2 79.6 84.4 114.3 125.5 110.8 163.9 198.3 239.4 217.8 228.1 207.5 1 2 Investment company shares...................................... 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 2 3 Other corporate equities............................................ .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.9 6.7 3.1 3 4 Debt instruments.......................................................... 79.7 74.9 79.0 107.9 115.5 100.4 149.1 185.4 231.3 211.9 222.2 201.7 4 5 U.S. Government securities.................................. 3.7 8.8 12.5 16.7 5.5 21.1 29.4 23.6 29.4 33.5 21.9 45.1 5 6 State and local obligations.................................... 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 6 7 Corporate and foreign bonds............................... 8.6 11.8 17.2 15.0 14.5 23.8 24.8 20.2 12.5 23.3 22.2 24.4 7 8 25.6 21.3 23.0 27.4 27.8 26.4 48.9 68.8 71.9 54.4 63.4 45.4 8 9 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 9 10 Bank loans n.e.c...................................................... 16.4 9.7 7.5 15.7 17.6 5.8 12.4 28.5 52.1 39.1 51.1 27.0 10 11 Open-market paper and RP’s.............................. 1.9 4.4 4.0 5.2 14.1 -1.2 .9 3.3 11.6 13.6 17.8 9.4 11 12 Other loans............................................................... 6.5 6.9 2.5 8.3 15.8 7.3 4.0 7.4 17.2 21.1 14.9 27.3 12 Note.—Full statements for sectors and transaction types quarterly, and Flow of Funds Section, Division of Research and Statistics, Board of Digitized for FRAanSnEuaRll y for flows and for amounts outstanding, may be obtained from Governors of the Federal Reserve System, Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 175.8 181.9 169.7 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 49.3 39.6 59.0 2 3 U.S. Government securities...................................... 3.7 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.6 6.9 10.4 3 4 Residential mortgages................................................ .4 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.8 11.7 15.9 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 20.2 14.2 26.2 6 By agency— 7 2.8 4.9 4.6 4.9 2.9 2.8 3.2 2.6 3.0 7.5 2.4 12.5 7 8 Sponsored credit agencies.......................................... 2.2 5.1 -.1 3.2 8.9 10.0 3.2 7.0 20.3 24.1 20.5 27.6 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 11.6 10.6 12.7 10 11 2.1 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 27.4 11 Private domestic funds advanced 12 Total net advances........................................................... 62.8 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 148.6 159.1 138.1 12 13 * 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 24.8 15.0 34.7 13 14 State and local obligations........................................ 7.3 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 14 15 6.0 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 20.5 19.2 21.8 15 16 Residential mortgages................................................ 18.6 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.5 31.4 19.6 16 17 Other mortgages and loans....................................... 31.6 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 67.0 82.1 52.0 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 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 132.1 155.6 108.6 19 20 Commercial banking................................................... 28.7 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 64.4 87.5 41.3 20 21 Savings institutions..................................................... 14.3 7.9 15.0 15.6 14.5 16.9 41.4 49.3 35.1 27.5 35.1 19.8 21 22 13.6 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.3 29.1 39.4 22 23 6.2 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 6.0 3.8 8.2 23 24 Sources of funds........................................................... 62.9 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 132.1 155.6 108.6 24 25 38.4 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 72.0 93.5 50.5 25 26 7.9 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.1 23.6 4.6 26 27 Other sources............................................................... 16.6 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 46.0 38.5 53.5 27 28 .8 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 13.6 11.6 15.5 28 29 Treasury balances................................................... -1.0 -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -5.1 -2.1 -8.1 29 30 Insurance and pension reserves............................ 11.4 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 28.0 23.0 33.0 30 31 5.4 3.0 -.6 7.2 13.8 4.4 2.9 16.5 20.2 9.5 6.0 13.0 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 30.5 27.1 34.0 32 33 U.S. Government securities...................................... 2.9 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 18.4 13.9 22.8 33 34 State and local obligations........................................ 2.6 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 10.7 8.3 13.0 34 35 Corporate and foreign bonds................................... 1.0 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -2.3 -1.6 -2.9 35 36 1.5 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 .6 4.3 -3.1 36 37 -.1 2.3 1.7 2.1 2.0 1.4 1.5 .8 3.8 3.2 2.2 4.3 37 38 Deposits and currency.................................................... 40.5 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 78.3 102.0 54.6 38 39 32.7 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 72.0 88.9 55.1 39 40 Large negotiable CD’s.......................................... 3.6 -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 23.6 30.0 17.2 40 41 Other at commercial banks.................................. 16.0 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 26.6 32.3 21.0 41 42 13.2 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 21.8 26.6 16.9 42 43 7.8 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 6.3 13.1 -.5 43 44 Demand deposits..................................................... 5.6 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 * 4.6 -4.6 44 45 2.1 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.3 8.5 4.1 45 46 Total of credit market instr., deposits, and currency. 48.4 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 108.9 129.1 88.6 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 28.0 21.8 34.8 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 88.9 97.8 78.7 48 49 Total foreign funds..................................................... .8 2.1 4.3 2.9 9.1 1.8 23.2 13.6 7.2 25.2 22.2 28.2 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 5.9 5.9 5.9 1 2 3.2 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 2 3 .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.9 6.7 3.1 3 4 6.1 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 6.4 8.4 4.4 4 5 -2.6 -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 -.5 -2.5 1.5 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 -j- 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 □ JULY 1975 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1974 1975 Line Credits (+), debits (—) 1972 r 1973 r 1974 III' Ip Merchandise trade balance i. -6,409 955 -5,528 -200 -1,537 -2,341 -1,450 1,841 Exports.............................. 49,388 71,379 98,268 22,451 24,206 25,026 26,585 27,222 Imports.............................. -55,797 -70,424 -103,796 -22,651 -25,743 -27,367 -28,035 -25,381 Military transactions, net.......... -3,621 -2,317 -2,158 -503 -646 -513 -498 -347 Travel and transportation, net. -3,024 -2,862 -2,692 -513 -717 -721 -741 -507 Investment income, net 2.......................................... 4,321 5,179 10,121 3,245 1,964 2.354 2,559 1,325 U.S. direct investments abroad 2................... 6,416 8,841 17,679 4,500 4,399 4,700 4,080 2,189 Other U.S. investments abroad....................... 3,746 5,157 8,389 1,629 2,048 2.354 2,358 2,157 Foreign investments in the United States 2 . -5,841 -8,819 -15,946 -2,884 -4,483 -4,700 -3,879 -3,021 Other services, net 2.................................................. 2,803 3,222 3,830 886 936 960 1,049 1,032 Balance on goods and services - -5,930 4,177 3,574 2,915 -261 919 3,344 Not seasonally adjusted... 4,197 -2,897 2,278 4,388 Remittances, pensions, and other transfers. -1,606 -1,903 -1,721 -370 -457 -457 -439 -458 Balance on goods, services, and remittances. -7,537 2,274 1,853 2,545 -457 -718 480 2,886 Not seasonally adjusted............................. 3,857 — 472 -3,366 1,834 3,959 U.S. Government grants (excluding military). -2,173 -1,938 -5,461 -2,596 -1,408 -808 -649 -738 Balance on current account... -9,710 335 -3,608 4-51 -1,865 -1,526 -169 2,148 Not seasonally adjusted., 1,248 -1,946 -4,130 1,219 3,211 16 U.S. Government capital flows excluding nonscheduled repayments, net 5.......................................................................... -1,706 -2,933 408 41,314 273 -195 -985 -1,038 17 Nonscheduled repayments of U.S. Government assets............ 137 289 1 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies................................................................ 234 1,154 710 97 211 278 125 541 19 Long-term private capital flows, net............................................ -69 177 -8,437 264 -999 -2,157 -5,544 -2,126 20 U.S. direct investments abroad.............................................. -3,530 -4,968 -7,268 -745 -1,572 -1,828 -3,123 -937 21 Foreign direct investments in the United States................ 380 2,656 2,224 1,177 1,700 -1 -653 326 22 Foreign securities..................................................................... -618 -759 -1,990 -646 -313 -304 -726 -2,033 23 U.S. securities other than Treasury issues.......................... 4,507 4,055 672 692 440 204 -663 604 24 Other, reported by U.S. banks............................................. -1,158 -706 -1,150 -23 -906 48 -269 -444 27 Other, reported by U.S. nonbanking concerns................. 351 -101 -925 -191 -348 -276 -110 358 26 Balance on current account and long-term capital 5... -11,113 -977 -10,927 1,624 -2,380 -3,600 -6,573 -475 Not seasonally adjusted.............................................. 2,375 -2,519 -6,123 -4,660 50 Nonliquid short-term private capital flows, net.............. -1,542 -4,238 -12,949 -3,908 -5,248 -1,462 -2,331 1,702 Claims reported by U.S. banks................................... -1,457 -3,886 -12,186 -2,817 -5,319 -1,618 -2,432 1,895 Claims reported by U.S. nonbanking concerns..., -306 -1,183 -2,603 -1,508 -682 -276 -137 -95 Liabilities reported by U.S. nonbanking concerns. 221 831 1,840 417 753 432 238 -98 Allocations of Special Drawing Rights (SDR’s)............. 710 Errors and omissions, net.................................................... -1,884 -2,436 4,834 1,085 1,416 1,153 1,179 1,844 Net liquidity balance............... -13,829 -7,651 -19,043 -1,199 -6,212 -3,909 -7,725 3,071 Not seasonally adjusted.. —244 -6,654 -5,551 -6,594 4,204 Liquid private capital flows, net................................. 3,475 2,343 10,669 1,751 2,020 4,028 2,870 -6,294 Liquid claims........................................................... -1,247 -1,951 -6,113 -2,620 -1,297 -228 -1,968 -4,752 Reported by U.S. banks............................... -742 -1,161 -5,980 -2,343 -1,306 -732 -1,599 -5,059 Reported by U.S. nonbanking concerns.. -505 -790 -133 -277 9 504 -369 307 Liquid liabilities—.................................................. 4,722 4,294 16,782 4,371 3,317 4,256 4,838 -1,542 Foreign commercial banks......................... 3,717 3,028 12,636 4,300 2,413 3,150 2,773 -2,619 International and regional organizations. 103 377 1,295 -530 298 219 1,308 847 Other foreigners........................................... 902 889 2,851 601 606 887 757 230 Official reserve transactions balance, financed by changes in- -10,354 -5,308 -8,374 552 -4,192 119 -4,855 -3,223 Not seasonally adjusted......................................................... 1,406 -4,048 -1,683 -4,049 -2,188 Liquid liabilities to foreign official agencies................................ 9,734 4,456 8,481 -63 3,924 750 3,872 2,753 Other readily marketable liabilities to foreign official agen­ cies 6................................................................................................ 399 1,118 672 -277 183 135 631 800 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt..................................................................... 189 -475 655 -2 443 -1 215 -4 U.S. official reserve assets, net....................................................... 32 209 -1,434 -210 -358 -1,003 137 -326 Gold............................................................................................. 547 SDR’s.......................................................................................... -703 9 -172 -29 -123 -20 -5 Convertible currencies............................................................. 35 233 3 -85 -152 241 -14 Gold tranche position in IMF............................................... 153 -33 -1,265 -209 -244 -728 -84 -307 Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14).......................................................................... 4,492 2,809 1,811 406 564 352 490 783 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: Net liquidity, not seasonally adjusted.. -14,539 -7,651 -19,043 -244 -6,654 -5,551 -6,594 4,204 Official reserve transactions, N.S.A. -11,064 -5,308 -8,374 1,406 -4,048 -1,683 -4,049 -2,188 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports i Imports ^ Trade balance 197 2 1973 1974 1975 1972 1973 19743 1975 1972 1973 19743 1975 Month: Jan... 4.074 4,955 7,150 9,412 4,436 5,244 6,497 9,622 -361 -289 +653 -211 Feb... 3,824 5,070 7,549 8,789 4,473 5,483 7,317 7,872 -649 -413 +232 +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 8,570 4,417 5,360 8,025 8,013 -596 + 133 + 83 +557 May.. 3,882 5,561 7,652 8,145 4,486 5,703 8,265 7,093 -604 -142 -612 + 1,052 June.. 3,971 5,728 8,317 4,468 5,775 8,573 -497 -47 -257 July.., 4.074 5,865 8,308 4,565 5,829 8,918 -491 + 37 -611 Aug... 4,191 6,042 8,380 4,726 6,011 9,262 -535 + 32 -882 Sept... 4,176 6,420 8,396 4,612 5,644 8,698 -436 +776 -302 Oct... 4,312 6,585 8,673 4,738 5,996 8,769 -426 +589 -96 Nov... 4,468 6,879 8,974 5,148 6,684 8,965 -680 + 195 +9 Dec... 4,553 6,949 8,862 5,002 6,291 9,250 -449 +658 -388 Quarter: I 11,767 15,336 22,324 26,917 13,424 16,140 21,556 24,830 -1,657 -804 +768 +2,087 I I 11,673 16,783 24,077 13,370 16,839 24,863 -1,697 -56 -786 III.... 12,442 18,327 25,084 13,903 17,483 26,878 -1,461 +844 -1,794 IV.... 13,333 20,413 26,509 14,888 18,972 26,983 -1,555 + 1,441 -474 Year4... 49,199 70,823 97,907 55,583 69,476 100,218 -6,384 + 1,347 -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. See also note 3. 3 Beginning with 1974 data, imports are reported on an f.a.s. trans­ Note.—Bureau of the Census data. Details may not add to totals be­ actions value basis; prior data are reported on a Customs import value cause of rounding. 3. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i n e t F i r o v n e SDR’s 3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo C u e c r r i r o e e t 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’s 3 1961... 18,753 16,947 16,889 116 1,690 1974 1962... 17,220 16,057 15,978 99 1,064 June... 14,946 11,652 11,567 94 1,005 2,195 1963... 16,843 15,596 15,513 212 1,035 July.... 14,912 11,652 11,567 12 1,021 2,227 1964... 16,672 15,471 15,388 432 769 Aug... 15,460 11,652 11,567 224 1,384 2,200 Sept.... 15,893 11,652 11,567 246 1,713 2,282 1965... 15,450 13,806 13,733 781 863 Oct.. . . 15,890 11,652 11,567 193 1,739 2,306 1966... 14,882 13,235 13,159 1,321 326 Nov.... 15,840 11,652 11,567 43 1,816 2,329 1967... 14,830 12,065 11,982 2,345 420 Dec---- 15,883 11,652 11,652 5 1,852 2,374 1968... 15,710 10,892 10,367 3,528 1,290 1969... 5 16,964 11,859 10,367 52,781 2,324 1975- 15,948 11,635 11,635 2 1,908 2,403 1970... 14,487 11,072 10,732 629 1,935 851 16,132 11,621 11,621 2 2,065 2,444 1971... 612,167 10,206 10,132 6 276 585 1,100 16,256 11,620 11,620 19 2,194 2,423 19727. . 13,151 10,487 10,410 241 465 1,958 16,183 11,620 11,620 2 2,168 2,393 19738 . . 14,378 11,652 11,567 8 552 2,166 May .... 16,280 11,620 11,620 4 2,218 2,438 1974... 15,883 11,652 11,652 5 1,852 2,374 June.... 9 16,242 11,620 11,620 25 9 2,179 9 2,418 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 June amounted to $2,381 million, reserve position in IMF, $2,131 at time of revaluation. million, and total U.S. reserve assets, $16,157. 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 □ JULY 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—May. 6.478 11.652 231 169 312 882 1,781 927 97 77 103 June. 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 Aug.. 6.478 11.652 231 169 312 882 1,781 927 97 76 103 Sept.. 49,830 6.478 11.652 31,700 231 169 312 882 1,781 927 97 76 103 Oct... 6.478 11.652 231 169 312 882 1,781 927 97 76 103 Nov.. 6.478 11.652 231 169 312 882 1,781 927 97 76 103 Dec.. 49*790 6.478 11.652 3i * 660 231 169 312 882 1,781 927 97 76 103 1975—Jan........ 6.478 11,635 231 169 312 882 1,781 927 97 76 Feb....... 6.478 11,621 231 169 312 882 1,781 927 97 76 Mar.... *49,770 6.478 11,620 *31,670 231 169 312 882 1,781 927 97 76 Apr__ 6.478 11,620 231 312 882 1 ,781 927 97 76 May*.. 6.478 11,620 231 312 882 1,781 927 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—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 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 3,483 891 140 389 103 154 2,294 Feb.................. 4,262 4,966 150 293 158 173 3,483 891 140 389 103 154 2,294 Mar................. 4,262 4,966 150 293 158 173 3,483 891 154 389 103 2,294 Apr................. 4,262 4,966 150 293 158 173 3,483 891 154 389 103 2,294 May*............. 4,262 4,966 150 158 3,483 891 175 389 103 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—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 1,175 129 764 602 244 3,513 99 151 886 148 472 265 Feb.................. 67 1,175 129 759 602 244 3,513 99 151 886 148 472 272 Mar................. 67 1,175 129 755 602 244 3,513 99 151 886 148 472 259 Apr................. 67 1,175 129 747 602 244 3,513 99 151 472 260 May*............. 67 129 742 244 3,513 99 472 239 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

JULY 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 f r I g r i M o s o i l m n d F g S t h er o m rt ­ Market­ N k o e n ta m bl a e r­ N n v k o o e e n r n t t a c m i b b o l a l n e e r ­ ­ r O ea t d h i e l r y t L o li a i t c q i b e o u i s l m i i d ­ ­ S t h er o m rt ­ Market­ m t n i a o n o r n t n y i e , ­ ­ ac tr t a io n n s s ­ 1 Total t l i i e a s b i r l e i­ ­ U ab .S le . ve c r o ti n b ­ le T U re .S as . . m a a b rk le et­ m b e a r n c k ia s l Total t l i i e a s b i r l e i­ ­ U ab .S le . a g n i d o n r a e l ­ p b o a b i r n n t y k e d s n T b o o a r t e n n e a d d s s s 3 . T b U a o re n n .S a d d s . s . b n o a o n n te d d s s 4 li t a ie b s il 5 i­ abroad 6 p b o a b i r n n t y k e d s n T b o o a r te e n n a s d d 3 s s . >7 z o a rg ti a o n n i s ­ 8 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........................... J29.313 800 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........................... (31,145 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 iol5,975 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................ J47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 647 844 \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 565 846 1971—Dec. n .............. \ J 6 6 7 7 , , 8 6 0 81 8 5 5 4 4 4 4 5 5 1 0, , 6 2 5 0 1 9 3 3 9 9 , , 6 01 7 8 9 1 1 , ,9 95 55 5 6 6 , , 0 0 9 6 3 0 3 3 , , 4 3 4 7 1 1 1 14 4 4 4 1 1 0 0 , , 9 2 4 6 9 2 4 4 , , 1 1 4 3 1 8 3 3 , , 6 6 9 9 1 4 4 4 4 47 7 1 1 , , 5 5 2 2 8 3 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.r................ 92,443 66,814 43,923 5,701 12,319 3.210 1,661 17,694 5,932 5,502 430 2,003 1974—May r................ 101,317 68,193 46,209 5.013 12.330 3.210 1,431 24,644 6,877 6,511 366 1,603 Juner................ 104,059 70,030 47,465 5.013 12.330 3.655 1,567 25,119 7,139 6,776 363 1,771 Julyr................. 107,116 71,117 48,455 5.013 12.330 3.655 1.664 26,816 7,312 6,935 377 1,871 Aus.r............... 109,991 71,029 48,440 4,940 12.330 3.655 1.664 29,373 7,494 7,128 366 2,095 Sept.r............... 110.761 72,716 50,149 4.880 12.330 3.655 1,702 28,045 8,010 7,617 393 1,990 Oct.r................. 112,084 73,823 50,921 4.880 12.330 3.867 1,825 28,071 8,070 7,639 431 2,120 Nov.T............... 115.762 75,185 51,858 4,906 12.330 3.867 2,224 29,770 8,336 7,855 481 2,471 Dec.r................ 119,025 76.624 53,035 5,059 12.330 3.867 2,333 30,330 8,783 8,285 498 3,288 1975—Jan.r................. 118,191 75,918 51,824 5,177 12.457 3.867 2,593 29,429 8,692 8,184 508 4,152 Feb.r................ 119,528 78.625 54,200 5,359 12.457 3.867 2,742 27,649 9,050 8,440 610 4,204 Mar................... 120,163 79,176 53,696 6,003 12.457 3,867 3,153 27,841 9,002 8,394 608 4,144 Apr.27................ 121,219 79,005 53,480 5,938 12.457 3,907 3,223 29,353 8,809 8,179 630 4,052 Mayp................ 121,543 79,682 52,317 6,061 12.457 5,467 3,380 28,625 9,027 8,428 599 4,209 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 « 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. □ JULY 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—Mayr 68,193 42,951 4,302 3,409 13,006 1,620 2,905 Juner, 70,030 43,200 4,201 4,022 14,012 1,854 2,741 July. 71,117 43,002 4,125 3,951 15,235 2,055 2,749 Aug.' 71,029 42,292 3,953 4,157 15.554 2,272 2,801 Sept.' 72,716 42,649 3,819 4,445 16,299 2,850 2,654 Oct.'. 73,823 43,007 3,805 4,046 17,329 2,947 2,689 Nov.' 75,185 43,179 3,705 3,768 18,673 3,204 2,656 Dec.' 76.624 44,151 3,662 4,419 18,604 3,161 2,627 1975—Jan... 75,918 43,289 3,621 3,659 19.555 3,232 2,562 Feb.. 78.625 44,706 3,616 4,223 20,274 3,356 2,450 Mar.. 79,176 45,823 3,546 4,390 19,396 3,433 2,588 Apr.P 79,005 44,983 3,251 4,506 20,062 3,493 2,710 May? 79,682 45,186 3,101 4,605 20,425 3,448 2,917 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. nstitutions of foreign countries, as reported by banks in the United States; 7. SHORT TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 6 IMF Payable in dollars gold Deposits Payable invest­ U.S. End of period in ment5 Treasury Other Total i Deposits U.S. Other foreign Total bills and short­ Treasury short­ cur­ certifi­ term Total bills and term rencies Demand Time2 cates liab. 7 Demand Time2 certifi­ liab.4 cates 3 1971.............. 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 1972r............ 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 799 1973*-............ 69,074 68,477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 1,474 1974—Mayr. 78,752 78,098 11,672 7,609 33,983 24,835 653 1,388 95 53 46 1,194 June', 81,014 80,222 12,856 8,253 34,038 25,074 792 1,653 106 66 91 1,390 July r. 83,951 83,285 12,222 8,643 34,178 28,241 666 1,745 121 66 51 1,508 Aug.r 86,863 86,117 11,841 9,091 33,179 32,006 746 1,921 81 68 146 1,627 Sept.' 87,710 87,015 12,769 9,240 33,467 31,539 696 1,900 128 69 75 1,629 Oct.r. 88,628 87,909 11,228 9,807 34,187 32,686 719 1,997 125 89 93 1,690 Nov.r 91,816 91,072 12,860 9,550 35,212 33,450 744 2,333 128 89 285 1,830 Dec.', 94,815 94,049 14,054 10,089 35,662 34,244 766 3,165 139 105 497 2,424 1975—Jan.'. 93,350 92,630 12,295 10,157 38,108 32,069 721 3,911 123 104 1,234 2,450 Feb.'. 94,245 93,511 12,139 10,322 40,428 30,622 733 3,955 118 95 1,260 2,482 Mar.. 93,404 92,722 12,324 10,143 40,094 30,161 682 3,473 189 116 777 2,391 Apr.. 94,604 93,862 11,699 10,390 40,424 31,349 742 3,592 99 126 781 2,585 May* 93,209 92,544 11,924 10,368 40,628 29,624 665 3,839 114 133 1,994 1,598 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time2 certifi­ liab. 4 Demand Time2 certifi­ liab. 7 cates3 cates3 1971.......................... 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972.......................... 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 1973 r....................... 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 127 1974—May r........... 77,364 11,577 7,556 33,937 23,641 653 46,209 2,352 4,025 33,731 5,974 127 June r........... 79,360 12,750 8,187 33,947 23,684 792 47,465 2,643 4,277 33,745 6,673 127 July r............ 82,206 12,102 8,578 34,128 26,733 666 48,455 2,562 4,445 33,749 7,571 127 Aug.r........... 84,941 11,760 9,023 33,033 30,379 746 48,440 2,474 4,429 32,687 8,722 127 Sept.r........... 85,811 12,641 9,171 33,392 29,910 696 50,149 2,825 4,282 32,955 9,960 127 Oct.r........... 86,631 11,104 9,718 34,094 30,996 719 50,921 2,168 4,400 33,634 10,591 127 Nov.r.......... 89,483 12,732 9,461 34,927 31,620 744 51,858 2,472 4,058 34,467 10,734 127 Dec.r........... 91,650 13,915 9,984 35,165 31,821 766 53,035 2,951 4,257 34,656 11,044 127 1975—Jan.r............ 89,439 12,172 10,053 36,874 29,619 721 51,824 2,185 4,296 36,531 8,813 Feb.r........... 90,289 12,021 10,226 39,169 28,141 733 54,200 2,058 4,306 38,840 8,996 Mar.............. 89,931 12,135 10,027 39,316 27,771 682 53,696 2,323 4,303 39,015 8,054 Apr............... 91,012 11,600 10,264 39,643 28,764 742 53,480 2,147 4,193 39,275 7,864 May*........... 89,370 11,810 10,236 38,634 28,026 665 52,317 2,175 4,331 38,372 7,439 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'....................... 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1974—Mayr........... 31,155 24,118 6,910 788 82 16,339 6,511 2,315 2,744 124 1,329 526 Juner........... 31,895 24,454 7,689 996 95 15,675 6,776 2,418 2,915 107 1,336 665 Julyr............ 33,752 26,277 7,105 1,165 204 17,803 6,936 2,435 2,967 175 1,359 539 Aug.r........... 36,502 28,754 6,890 1,444 200 20,220 7,129 2,396 3,150 145 1,437 618 Sept.r........... 35,661 27,476 7,096 1,625 258 18,497 7,617 2,721 3,264 179 1,454 568 Oct.r........... 35,710 27,492 6,361 1,896 268 18,967 7,626 2,574 3,422 193 1,438 591 Nov.r......... 37,626 29,154 7,622 1,795 253 19,484 7,855 2,638 3,608 207 1,402 617 Dec.r........... 38,615 29,691 8,253 1,931 232 19,275 8,285 2,710 3,796 277 1,502 639 1975—Jan.r............ 37,614 28,710 7,362 1,998 158 19,193 8,184 2,625 3,760 186 1,613 721 Feb.r........... 36,090 26,916 7,142 2,048 129 17,596 8,441 2,820 3,872 200 1,548 733 Mar.............. 36,235 27,160 7,072 1,808 101 18,179 8,394 2,740 3,916 200 1,537 682 Apr............... 37,533 28,612 6,897 2,102 148 19,465 8,179 2,556 3,969 220 1,434 742 May*........... 37,053 27,961 6,857 1,820 93 19,190 8,428 2,777 4,084 168 1,398 665 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. □ JULY 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.r Aug.r Sept.r Oct.r Nov.r Dec.r Jan.r Feb.r Mar. Apr. MayP Europe: 161 530 597 568 557 607 597 624 599 629 627 Belgium-Luxembourg................................. 1,483 1,937 1,933 2,047 2,295 2,506 2,391 2,647 2,539 2,810 2,875 659 251 268 285 338 369 369 324 370 340 323 165 229 219 223 262 266 204 204 202 212 181 3,483 3,624 3,574 3,933 3,835 4,287 4,206 4,035 4,226 4,600 4,982 Germany....................................................... 13,227 11,873 9,337 8,623 9,102 9,420 9,948 10,801 11,235 10,229 8,203 389 298 293 255 213 248 253 242 192 202 273 Italy................................................................ 1,404 1,101 3,138 2,748 2,192 2,617 2,101 2,260 2,449 2,498 2,157 2,886 2,234 2,498 3,009 3,177 3,234 3,208 3,242 3,414 3,302 3,351 965 894 1,023 1,131 1,181 1,040 874 826 843 827 846 Portugal......................................................... 534 422 435 411 338 310 310 303 288 247 267 305 303 377 347 332 382 379 320 358 361 341 1,885 1,049 1,096 1,071 1,103 1,138 1,132 1,215 1,209 1,477 1 ,697 Switzerland................................................... 3,377 7,850 8,393 8,974 9,378 10,007 9,601 9,453 8,862 8,807 8,587 98 106 100 121 102 152 169 131 243 103 87 6,148 9,076 8,714 7,570 8,186 7,548 6,660 6,205 7,050 7,065 7,006 Yugoslavia.................................................... 86 100 151 136 105 183 187 168 158 122 126 Other Western Europe1............................ 3,352 2,829 3,122 3,263 3,432 4,051 3,128 2,859 2,641 2,516 2,417 U.S.S.R.......................................................... 22 26 40 44 33 82 65 59 35 34 61 Other Eastern Europe................................ 110 147 149 136 140 206 172 120 218 123 148 Total....................................................... 40,742 44,879 45,456 44,896 46,300 48,655 45,953 46,037 47,130 46,503 44,555 Canada............................................................... 3,627 3,250 3,754 4,226 3,725 3,503 3,405 3,789 3,456 3,955 3,953 Latin America: i Argentina....................................................... 924 1,189 1,105 1,017 938 886 900 894 822 886 964 Bahamas....................................................... 852 3,201 1,232 1,691 1,747 1,452 2,161 2,050 1 ,755 2,463 2,045 Brazil.............................................................. 860 847 893 894 952 1,034 859 927 1 ,065 1,077 984 Chile............................................................... 158 253 266 270 297 276 284 281 258 278 260 247 285 293 292 305 305 319 317 326 313 307 Cuba............................................................... 7 6 7 6 7 7 6 6 6 6 6 Mexico........................................................... 1,296 1,610 1,647 1,731 1 ,746 1,770 1,747 1 ,734 1,668 1,727 1,875 Panama......................................................... 282 445 511 484 474 488 500 476 519 656 513 Peru................................................................ 135 185 i 182 .177 183 272 256 238 225 217 206 Uruguay......................................................... 120 115 120 128 140 147 152 164 171 174 168 Venezuela...................................................... 1,468 2,999 | 3,217 2,992 2,921 3,413 2,918 3,351 3,501 3,559 3,864 Other Latin American republics.............. 884 1,066 1,214 1,113 1,176 1,316 1,211 1,263 1,348 1,401 1,353 Netherlands Antilles and Surinam.......... 71 103 ! 123 138 135 158 155 133 143 113 123 Other Latin America.................................. 359 828 | 553 508 839 515 892 468 492 738 897 Total....................................................... 7,664 13,132 j 11,361 11,442 11,862 12,038 12,361 12,302 12,300 13,610 13,566 Asia: China, People’s Rep. of (China Mainland) 38 40 40 43 45 50 50 73 62 63 56 China, Republic of (Taiwan).................... 757 842 1 822 797 808 818 977 1,015 1,037 1,038 999 372 490 1 621 470 551 530 558 546 528 543 596 India............................................................... 85 131 158 140 156 261 179 177 183 127 168 Indonesia....................................................... 133 785 1 943 1,600 1,363 1,221 1,327 1,083 497 582 279 327 211 217 218 279 386 417 473 508 490 536 Japan............................................................. 6,967 9,912 10,136 10,407 10,891 10,897 10,442 10,909 11,390 11,043 11,109 Korea............................................................. 195 277 304 313 309 384 315 327 311 345 341 Philippines..................................................... 515 715 748 726 731 747 702 642 745 660 662 Thailand........................................................ 247 403 362 328 333 333 337 327 455 446 342 Other............................................................. 1,202 4,252 4,726 4,832 5,681 5,446 6,003 6,136 4,651 4,827 5,176 10,839 18,060 19,076 19,874 21,147 21,073 21,307 21,708 20,368 20,162 20,262 Africa: Egypt.............................................................. 35 105 i 73 109 109 103 105 106 92 112 113 Morocco........................................................ 11 63 1 79 73 59 38 71 81 65 66 75 South Africa................................................. 114 156 157 138 155 130 150 188 191 159 179 Zaire............................................................... 87 46 43 41 82 84 66 41 38 57 68 808 2,258 2,893 2,973 3,199 3,197 3,272 3,392 3,461 3,472 3,460 1,056 2,627 3,244 3,333 3,604 3,551 3,664 3,809 3,848 3,867 3,895 Other countries: 3,131 2,926 2,847 2,788 2,759 2,742 2,661 2,568 2,761 2,856 3,069 59 68 72 71 86 89 88 76 66 60 71 3,190 2,994 2,918 2,859 2,845 2,831 2,748 2,644 2,828 2,916 3,140 Total foreign countries................................... 67,119 84,941 85,811 86,631 89,483 91,650 89,439 90,289 89,931 91,012 89,370 International and regional: 1,627 1,567 1,534 1,665 2,049 2,894 3,636 3,677 3,222 3,291 3,600 Latin American regional............................ 272 262 261 232 213 202 226 222 207 211 154 Other regional 3............................................ 57 93 104 100 70 69 50 57 44 90 84 1,955 1,921 1,900 1,997 2,333 3,165 3,911 3,955 3,473 3,592 3,839 Grand total.......................................... 69,074 86,863 87,710 88,628 91,816 94,815 93,350 94,245 93,404 j 94,604 93,209 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 data4 1973 1974 1975 1973 1974 1975 Area and country Area and country Apr. Dec, Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus............................................... 9 19 10 7 17 Laos...................................... 3 3 3 3 5 Iceland................................................... 12 8 11 21 20 Lebanon.............................. 55 62 68 119 180 Ireland, Rep. of.................................. 22 62 53 29 29 Malaysia.............................. 59 58 40 63 92 Pakistan............................... 93 105 108 91 118 Other Latin American republics: Singapore............................ 53 141 165 240 215 Bolivia................................................... 65 68 102 96 93 Sri Lanka (Ceylon)........... 6 13 13 14 13 Costa Rica............................................ 75 86 88 117 120 Vietnam............................... 98 88 98 126 70 Dominican Republic.......................... 104 118 137 127 214 Oil-producing countries 5. 486 652 1,331 4,640 3,941 Ecuador................................................. 109 92 90 122 157 El Salvador.......................................... 86 90 129 129 144 Guatemala............................................ 127 156 245 214 255 Haiti....................................................... 25 21 28 35 34 Other Africa: Honduras.............................................. 64 56 71 88 92 Algeria............................. 51 111 110 67 59 Jamaica................................................. 32 39 52 69 62 Ethiopia (incl. Eritrea). 75 79 118 95 76 Nicaragua............................................. 79 99 119 127 125 Ghana.............................. 28 20 22 18 13 Paraguay............................................... 26 29 40 46 38 Kenya.............................. 19 23 20 31 32 Trinidad and Tobago........................ 17 17 21 107 Liberia............................. 31 42 29 39 33 Libya................................ 312 331 257 452 Other Latin America: Nigeria............................. 140 78 736 2,295 Bermuda................................................ 127 242 201 107 100 Southern Rhodesia.... 1 2 1 2 3 British West Indies............................. 100 109 354 116 610 Sudan............................... 3 3 2 4 14 Tanzania......................... 16 12 12 11 21 Other Asia: Tunisia............................. 11 7 17 19 23 Afghanistan.......................................... 19 22 11 18 19 Uganda........................... 19 6 11 13 Burma.................................................... 17 12 42 65 Zambia............................ 37 22 66 22 18 Cambodia............................................. 3 2 4 4 Jordan.................................................... 4 6 6 22 ’30' All other: New Zealand. 34 39 33 47 36 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). LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Other Latin Japan Other other tions ers many dom Europe America Asia coun­ tries 1971................................. 902 446 457 144 257 56 164 52 30 111 3 87 9 19722 J1,000 562 439 93 259 87 165 63 32 136 1 32 10 11,018 580 439 93 259 87 165 63 32 136 1 32 10 1973r............................... 1,462 761 700 310 291 100 159 66 245 132 5 78 16 1974—May r.................. 1,644 1,005 639 296 269 74 151 56 220 144 2 52 13 Juner.................. 1,635 974 661 321 268 73 150 56 220 144 2 77 12 July r................... 1,673 978 695 337 284 75 155 56 231 142 2 97 13 Aug.r................. 1,498 1,005 493 136 281 76 153 55 32 141 1 97 13 Sept.r................. 1,367 920 447 93 281 73 153 55 32 123 1 70 13 Oct.r................... 1,293 849 445 111 263 71 153 43 32 116 1 87 13 Nov.r................. 1,354 905 449 112 262 75 152 43 32 116 1 88 17 Dec.r.................. 1,285 822 464 124 261 79 152 43 32 115 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..................... 1,543 795 748 426 255 67 137 41 24 120 1 403 21 Apr...................... 1,410 626 784 462 253 68 135 41 25 121 1 439 22 May?.................. 1,446 585 861 544 248 69 129 41 27 121 1 519 22 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. □ JULY 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p MayP Europe: 7 7 9 9 10 10 10 10 11 12 14 14 14 260 260 260 260 250 250 276 251 252 252 252 252 251 Switzerland.......................................... 35 34 35 34 34 30 30 30 31 30 29 32 33 United Kingdom................................ 428 424 426 439 459 485 498 493 529 578 598 611 564 Other Western Europe..................... 87 89 97 101 96 102 98 97 89 83 283 300 301 5 5 5 5 5 5 5 5 5 3 5 5 5 823 819 832 849 854 883 917 885 916 959 1,180 1 ,211 1,168 Canada..................................................... 849 849 851 756 706 707 711 713 697 584 588 460 412 Latin America: Latin American republics................. 11 11 11 11 11 11 11 12 11 91 11 11 11 Other Latin America........................ 5 5 5 5 17 25 62 88 88 148 114 107 100 Total............................................ 16 16 16 16 28 36 74 100 99 239 125 119 112 Asia: Japan.................................................... 3,499 3,498 3,497 3,498 3,497 3,497 3,498 3,498 3,498 3,496 3,496 3,496 3,496 Other Asia.......................................... 12 12 12 12 12 12 12 212 325 541 1,071 1 ,121 1,291 Total............................................ 3,510 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 4,037 4,567 4,617 4,787 Africa....................................................... 157 157 156 151 151 151 151 151 151 151 151 161 181 All other.................................................. 25 25 25 25 25 25 25 5,379 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 5,969 6,611 6,568 6,660 International and regional: International........................................ 174 57 51 102 23 71 71 61 180 190 592 383 306 Latin American regional................... 41 60 75 71 68 52 67 61 61 59 79 77 65 214 117 126 173 91 123 138 122 240 249 671 460 371 Grand total.................................. 5,594 5,493 5,516 5,479 5,364 5,434 5,525 5,680 5,925 6,218 7,282 7,028 7,030 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 1971 »■.............................. 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 f15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 115,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973 r.............................. 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 119 115 1974—May'................. 29,925 29,041 9,875 367 6,314 3,194 5,081 6,660 7,424 884 611 113 160 Juner................. 32,436 31,479 11,409 390 7,685 3,334 5,107 7,649 7,314 957 687 130 141 Julyr................... 33,854 32,851 10,766 480 6,715 3,571 5,152 9,205 7,729 1,003 626 207 170 Aug.r................. 35,357 34,551 11,549 453 7,750 3,346 5,295 9,481 8,227 805 461 180 164 Sept.r................. 34,451 33,533 10,557 528 6,678 3,352 5,245 9,552 8,178 918 468 217 233 Oct.r................... 34,593 33,563 10,002 371 6,299 3,332 5,356 10,050 8,155 1,030 547 243 240 Nov.r................. 36,784 35,756 10,968 439 7,102 3,426 5,345 10,717 8,726 1,028 515 283 229 Dec.r. ................ 38,889 37,680 11,313 382 7,352 3,579 5,637 11,223 9,506 1,210 668 289 253 1975—Jan. «■................... 38,973 37,684 10,232 361 6,318 3,553 5,565 11,025 10,863 1,289 719 351 219 Feb.'.................. 39,772 38,582 10,313 379 6,414 3,521 5,346 11,090 11,833 1,190 609 336 244 Mar.r................. 42,052 40,889 9,626 310 5,682 3,634 5,415 11,341 14,507 1,162 626 290 246 Apr..................... 42,806 41,547 10,659 362 6,519 3,778 5,339 11,441 14,108 1,260 764 241 254 MayP................. 45,028 43,960 11,853 365 7,639 3,849 5,546 10,961 15,601 1,068 478 301 290 1 Excludes central 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

JULY 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. 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.r Aug.r Sept.r Oct.r Nov.r j Dec.r Jan.r Feb.r Mar. Apr. MayP Europe: Austria............................................................ 11 72 17 21 42 21 18 38 22 16 19 Belgium-Luxembourg................................ 147 207 164 301 308 384 401 591 550 674 647 48 49 51 59 45 46 54 53 41 53 49 Finland........................................................... 108 151 146 128 107 122 132 136 137 147 137 France............................................................ 621 760 637 485 791 673 892 893 896 859 723 Germany....................................................... 311 379 342 332 438 589 390 435 387 399 389 35 66 59 48 57 64 52 42 46 54 37 Italy................................................................ 316 441 354 340 340 345 351 277 287 334 329 Netherlands................................................... 133 112 130 176 183 348 195 210 187 157 221 72 136 113 94 97 119 115 106 104 114 126 Portugal........................................................ 23 24 26 35 25 20 16 39 32 26 25 Spain............................................................... 222 382 253 227 201 196 184 166 150 234 257 153 139 159 149 160 180 128 99 72 101 126 Switzerland................................................... 176 355 377 277 339 335 252 267 230 227 277 Turkey............................................................ 10 19 15 15 14 15 23 17 19 37 30 United Kingdom........................................ 1 ,459 2,619 2,228 1 ,852 2,332 2,435 2,700 2,770 2,896 3,174 3,635 Yugoslavia.................................................... 10 25 28 24 28 22 38 18 16 28 39 Other Western Europe............................... 25 22 18 31 38 22 22 27 24 31 25 U.S.S.R.......................................................... 46 30 21 27 28 1 46 44 48 34 51 83 Other Eastern Europe................................ 44 89 102 105 86 1 131 124 100 110 113 117 3,970 6,073 5,239 4,724 5,660 6,110 6,130 6,331 6,239 6,831 7,293 1,955 2,111 2,032 2,556 2,517 2,773 2,904 2,643 2,934 2,911 3,096 Latin America: 499 704 695 679 704 i 720 783 808 869 958 1 ,007 893 2,204 2,787 3,088 2,978 ! 3,398 3,737 4,699 5,804 5,758 7,050 900 1,522 1,534 1,476 1,493 i 1,415 1,264 1,345 1,266 1,299 1 ,272 Chile............................................................... 151 231 250 256 291 290 303 351 395 433 422 397 679 665 686 675 713 706 679 695 710 702 Cuba............................................................... 12 13 14 13 13 14 13 18 13 13 13 1,373 1,828 1,706 1,836 1,898 1,972 1,898 2,004 2,116 2,236 2,380 Panama.......................................................... 274 401 410 405 402 503 604 458 546 531 671 Peru................................................................ 178 421 408 433 486 518 504 531 555 606 590 Uruguay......................................................... 55 50 47 46 63 ! 63 75 86 104 116 100 Venezuela...................................................... 518 642 627 557 643 1 704 795 747 736 757 745 Other Latin American republics.............. 493 700 711 724 810 852 873 890 902 954 960 Netherlands Antilles and Surinam.......... 13 56 64 61 74 62 45 39 39 36 44 Other Latin America.................................. 144 448 370 693 920 1 ,138 1 ,451 1 ,549 1 ,571 1 ,678 2,165 5,900 9,900 10,290 10,953 11,450 12,362 13,051 14,202 15,613 16,085 18,121 Asia: China, People’s Rep. of (China Mainland) 31 22 9 7 5 4 18 65 19 11 12 China, Republic of (Taiwan).................... 140 448 466 499 483 500 526 473 500 448 434 147 271 243 214 238 223 203 184 291 210 288 India............................................................... 16 34 17 19 16 14 19 22 17 21 17 Indonesia....................................................... 88 120 122 128 140 157 142 159 145 134 119 Israel............................................................... 155 192 197 200 208 256 271 284 322 299 287 Japan............................................................. 6,398 12,822 12,398 11 ,724 12,420 12,514 11,821 11,246 11,600 11,028 10,603 Korea............................................................. 403 706 733 760 835 955 1 ,116 1 ,286 1 ,356 •1,503 1,415 Philippines..................................................... 181 348 342 347 325 372 302 342 353 398 455 Thailand........................................................ 273 438 439 417 428 458 391 374 406 413 374 392 677 669 670 666 771 739 781 846 1,007 965 Total....................................................... 8,224 16,078 15,635 14,986 15,765 16,224 15,545 15,216 15,855 15,472 14,969 Africa: Egypt.............................................................. 35 83 97 93 91 111 106 114 122 142 138 Morocco........................................................ 5 10 10 11 12 18 19 15 19 10 12 South Africa................................................. 129 238 243 282 299 329 364 396 413 458 475 Zaire............................................................... 60 97 94 107 101 98 31 38 31 37 41 Other.............................................................. 158 275 311 311 291 299 265 291 290 326 351 Total....................................................... 388 702 755 804 795 855 785 853 875 973 1,018 Other countries: Australia........................................................ 243 415 422 478 492 466 433 431 436 428 440 43 77 76 91 104 99 125 95 99 107 89 Total....................................................... 286 492 498 569 597 565 558 526 535 535 528 20,723 35,356 34,448 34,593 36,783 38,889 38,972 39,771 42,051 42,805 45,026 International and regional............................. 1 1 2 1 1 1 1 1 1 2 20.723 35,357 34,451 34,593 36,784 38,889 38,973 39,772 42,052 42,806 45,028 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. □ JULY 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 1971 '................. 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 11 y0 7/ 0Z 3° r1............... / \ 4 5 , , 9 0 5 6 4 3 4 4 , , 5 58 39 8 8 83 4 3 4 4 4 3 3 0 0 3 3 , , 2 3 7 1 6 4 4 3 3 7 5 5 4 4 0 0 1 1 4 5 5 0 7 7 0 03 4 4 4 0 0 6 6 2 1 , , 0 9 2 9 0 6 3 3 5 1 3 9 9 8 1 81 8 5 5 0 1 3 4 1973r................. 5,996 5,446 1,160 591 3,694 478 72 148 1 ,124 490 2,116 251 1,331 536 1974—May r... 6,830 6,214 1,570 772 3,872 550 67 224 1,559 467 2,434 241 1,381 524 Juner... 7,087 6,475 1,622 792 4,061 546 66 222 1,686 496 2,487 244 1,434 518 July r. .. 7,115 6,502 1,490 909 4,104 545 67 249 1,603 498 2,552 269 1,423 520 Aug.r... 7,055 6,448 1,456 913 4,080 539 68 285 1,545 503 2,527 269 1,416 511 Sept.r. . 6,999 6,386 1,419 853 4,113 542 71 266 1,535 543 2,479 247 1,425 505 Oct.r... 7,250 6,571 1,445 914 4,212 608 71 333 1,725 523 2,495 264 1,396 515 Nov.r. . 7,251 6,561 1 ,377 933 4,250 618 72 339 1,652 506 2,574 257 1,392 531 Dec.r... 7,155 6,481 1,331 931 4,219 609 65 329 1,578 486 2,602 258 1,359 542 1975—Jan ... 7,262 6,624 1,368 968 4,289 583 54 323 1,669 475 2,603 248 1,388 557 Feb... 7,457 6,797 1,378 1,035 4,384 606 54 347 1,749 485 2,675 248 1,355 598 Mar.. . . 7,554 6,900 1,395 1,063 4,442 598 55 357 1,769 485 2,695 247 1,409 592 Apr........ 7,583 6,896 1,239 1,110 4,547 624 63 375 1 ,813 490 2,786 242 1,249 630 May p. .. 7,852 7,176 1,287 1,185 4,703 610 66 402 1,923 458 2,848 254 1,289 677 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 securities 2 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 or Total and sales sales sales regional Total Official Other 197 2 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 197 3 305 -165 470 465 6 18,569 13,810 4,759 1,474 2,467 -993 1,729 1,554 176 197 4 -479 94 -573 -642 69 15,515 13,830 1,684 1,045 3,325 -2,281 1,899 1,718 181 1975—Jan.-MayP. .. 1,351 248 1,102 1 ,002 101 8,144 6,508 1,636 3,093 -2,321 729 786 -57 1974—Ma y -28 29 -57 -7 -50 903 852 51 89 154 -64 173 174 -2 June................. -101 -97 -3 -3 1,174 923 251 74 272 -197 207 117 90 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.................. 134 -36 171 153 17 927 978 -50 101 524 -423 117 87 30 1975—Ja......................n 245 118 127 118 9 1,207 897 309 131 1,207 -1,076 147 156 -9 Feb.................. 293 9 285 182 102 1,704 1,385 318 118 554 -436 134 173 -39 Mar................. 1,063 422 642 644 -3 1,752 1,152 600 186 647 -461 148 159 -11 Apr.p............... -254 -211 -43 -66 23 1,636 1,394 242 167 341 -174 155 141 14 Mayp............... 3 -89 92 123 -31 1,845 1,679 166 172 345 -173 145 157 -12 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

JULY 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 Other l 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.-MayP 6,107 4,509 1 ,596 46 78 115 341 290 44 913 78 1 584 18 1974—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 1 Dec............ 450 429 r21 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........... 1,148 913 236 12 11 40 40 38 7 146 15 -5 80 -1 Apr.P........ 1 .318 1,058 259 -15 23 26 44 54 4 136 -5 2 121 3 May.......... 1 ,527 1,149 378 -6 4 27 100 59 9 193 36 1 149 -1 i Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h 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 77 74 135 367 315 1,303 82 22 323 2 • 148 197 3 1,948 201 -33 -19 307 275 473 1,204 49 44 588 • 10 52 197 4 1,395 96 33 183 96 352 -59 702 50 43 557 8 10 34 1975—Jan.-May» 40 4 8 -26 61 -181 -10 -145 46 * 662 • 1 -524 1974—May.. 66 10 * • 28 19 1 59 3 5 3 • * -3 June.. 242 5 3 116 15 64 -17 185 1 4 -3 • * 56 July. . -5 -1 2 72 2 36 -11 100 1 5 7 * 10 -128 Aug.., 190 1 • 1 -1 29 -9 21 2 4 199 • * -36 Sept.. 176 1 1 -1 2 54 -3 55 4 2 -15 * 130 Oct... 226 10 1 -1 13 6 -5 25 18 5 100 • * 79 Nov.. 224 4 -1 2 -1 -20 -6 -23 11 I 398 * * -163 Dec... -11 1 * -4 1 54 5 56 -4 17 93 * * -173 1975—Jan.. . 119 2 3 * 6 59 5 74 14 -1 152 * * -120 Feb... -215 -4 3 * 3 -83 1 -80 16 * 37 * 1 -189 Mar.p, 365 1 -1 -1 10 23 1 32 4 -4 322 • * 10 Apr. p. -17 1 2 -26 35 -99 -13 -100 5 3 81 • * -7 Mayp. -212 3 1 -1 7 -81 -3 -72 7 1 69 * * -218 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance diof U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1972................. -622 -90 -532 505 -635 —69 -296 —66 29 1972—June............................. 312 339 1973................. — 818 139 —957 -141 —569 -120 -168 3 37 Sept.............................. 286 336 1974................. -2,058 -60 -1,999 — 544 -1,529 -93 138 7 22 372 405 1975— 310 364 Jan.-May ^ -2,378 -862 -1,517 -106 -912 -no -413 18 5 316 243 290 255 1974—May... -66 5 -71 -26 -35 -22 10 * 3 333 231 June... -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 1 354 241 Sept.... -35 12 -47 -41 -37 5 22 1 3 298 178 Oct....... -340 2 -342 -81 -244 * -18 _J 2 Dec.p........................... 293 193 Nov.... -56 3 -59 -21 -8 -14 -21 2 3 Dec.. .. -393 -95 -298 -27 -190 -25 -67 12 * 1975—Mar.®........................... 349 209 1975—Jan -1,085 -572 -514 -41 -405 -28 -60 20 * Feb.... -475 -147 -328 19 -159 -97 -94 2 * Note.—Data represent the money credit balances and Mar.*\. -473 -117 -356 -66 -174 -2 -112 -2 1 money debit balances appearing on the books of reporting Apr.p. . -160 -57 -103 -57 -6 17 -59 * 2 brokers and dealers in the United States, in accounts of May*5.. -185 31 -216 39 -168 * -88 -2 2 foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies............................ 1972—De c 78,202 4,678 2,113 2.565 71.304 11,504 35,773 1,594 22,432 2,220 1973—De c 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—Ap r 140,020 5,980 3,504 2,476 128,823 23.119 62,901 3,753 39,050 5,217 May........... 145,91“ 8,031 5,465 2.566 132,377 24,583 64,693 3,703 39,398 5,510 June........... 147,467 6,839 4.158 2,682 134,891 25.120 64,441 3,610 41,721 5,736 July............ 145,058 6,402 3,787 2,614 132,945 25,726 61,949 3,689 41 ,580 5,711 Aug............ 148.719 9,366 6,868 2,498 133,473 26,428 60,524 3,423 43,098 5,880 Sept............ 147.720 6,267 3,622 2,645 135,272 26,322 61,301 3,721 43,927 6,181 Oct............. 145,906 4,661 2,027 2,634 135,284 26,958 59,617 3,849 44,860 5,962 Nov............ 150,274 7,751 5.159 2,592 136,442 28,366 58,727 4,019 45,330 6,081 Dec............ 151,828 6,898 4,464 2,434 138,639 27,542 60,248 4,077 46,772 6,292 1975—Ja................n1 51,049 7,029 4,360 2,669 138,055 27,870 58,821 4,152 47,213 5,965 Feb............. 151 ,550 5,483 2,882 2,601 140,238 28,936 58,742 4,246 48,314 5,829 Mar............ 155,056 '5,319 '2,637 2,681 143,613 28,278 61,547 4,407 49,380 6,125 Apr.**........ 155,484 5,821 3,051 2,771 143,830 29,160 60,225 4,353 50,091 5,833 Payable in U.S. dollars. 1972—De c 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—De c 79,445 4,599 1,848 2,751 73,018 12,799 39,527 1,777 18,915 1,828 1974—Ap r 94,292 5,621 3,456 2,165 86,483 16,043 44,919 2,835 22,685 2,188 May........... 100,266 7,685 5,417 2,268 90,066 16,890 47,373 2,841 22,962 2,514 June........... 101,704 6,518 4,107 2,410 92,568 17,478 47,819 2,803 24,467 2,619 July............ 101,534 6,110 3,738 2,373 92,733 18,480 46,422 2 ,r 24,942 2,691 Aug............ 105,827 9,055 6,816 2,239 93,893 19,694 45,681 2,780 25,738 2,879 Sept............ 104,345 5,990 3,564 2,426 95.304 19,413 46,517 2,873 26,501 3,050 Oct............. 101,977 4,379 1,970 2,409 94,650 19,785 44,832 3,006 27,027 2,948 Nov............ 105,066 7,445 5,105 2,340 94,581 20,623 43,741 3,192 27,026 3,039 Dec............ 105,893 6,601 4,428 2,174 96,136 19,671 45,032 3,289 28,143 3,156 1975—Ja................n1 05,687 6,705 4,318 2,387 95,901 20,425 43,108 3,370 28,998 3,080 Feb............. 104,249 5,139 2,839 2,300 96,221 20,794 42,621 3,431 29,375 2,889 Mar............ 107,377 r5,005 '2,606 2,399 99,503 19,787 46,054 3,604 30,058 2,869 Apr.*7........ 108,276 5,456 3,008 2,448 100,120 20,962 45 ,111 3,599 30,448 2,700 IN UNITED KINGDOM Total, all currencies........... 1972—De c 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 0,106 1,018 1973—De c 61,732 1,789 738 1,051 57,761 8,773 34,442 735 3,811 2.183 1974—Ap r 68,959 2,589 1,806 783 64,238 10,819 36,775 1,073 5,572 2,131 May........... 71,982 3,792 2,969 823 66,008 11,759 37,920 889 5,439 2.183 June........... 71,305 3,561 2,612 949 65,617 11,886 36,468 812 6,452 2,126 July............ 69,197 3,046 2,205 840 63,974 12,486 34,575 718 6,195 2,177 Aug............ 70,382 3,599 2,858 741 64,496 12,790 33,942 666 7,097 2,287 Sept............ 70,965 2,860 2,087 774 65,596 12,436 34,959 829 7,372 2,509 Oct............. 68,123 1,325 502 823 64,462 12,386 33,608 887 7,581 2,336 Nov............ 69,137 3,387 2,568 818 63,571 13,122 32,128 753 7,567 2,179 Dec............ 69,804 3,248 2,472 776 64,111 12,724 32,701 788 7, 2,445 1975—Ja................n 68,451 2,633 1,902 731 63,527 12,873 32,057 854 7,743 2,291 Feb............ 67,038 1,818 1,023 796 63,250 13,246 31,641 848 7,515 1,970 Mar............ 69.654 1 ,798 982 817 65.693 12,806 34,260 929 7,699 2,163 Apr.?........ 69,248 2,017 1 ,126 891 65,330 13,314 33,079 919 8,018 1,902 Payable in U.S. dollars. 1972—De c 30,257 2.146 27,664 4,326 17,874 5,464 446 1973—De c 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—Ap r 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........... 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............ 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—Ja................n 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 Mar........... r48,939 '1 ,687 46,039 10,373 25,610 10,057 1,212 Apr.p........ 48,797 1,885 45,923 10,995 24,711 10,217 989 IN BAHAMAS AND CAYMANS i Total, all currencies............................ 1972—De c 12,642 1,486 214 1,272 10,986 6,663 4,322 170 1973—De c 23,771 2,210 317 1,893 21,041 12,974 8,068 520 1974—Ap r 28,778 2,390 956 1,434 25,765 16,086 9,679 623 May.......... 30,864 3,302 1 ,836 1,467 26,817 17,035 9,782 744 June.......... 31,219 2,427 981 1,446 28,005 17,643 10,361 787 July........... 30,403 2,380 870 1,510 27,208 16,822 10,386 815 Aug............ 32,317 4,624 3,153 1,471 26,914 16,157 10,757 779 Sept........... 30,080 2,315 750 1,564 26,910 16,014 10,896 856 Oct............. 30,071 2,206 711 1,495 27,075 16,280 10,795 790 Nov........... 32,313 3,299 1,816 1,484 28,130 17,193 10,937 883 Dec........... 31,731 2,463 1,081 1,382 28,453 16,854 11,599 815 1975—Ja..............n 33,129 3,223 1,594 1,629 29,068 16,864 12,204 838 Feb............ 33,532 2,563 1,072 1,491 30,135 17,389 12,746 834 Mar.......... 33,791 2,405 839 1,567 30,669 17,595 13,074 716 Apr.P........ 2 35,664 2,587 1,006 1,581 32,357 18,967 13,390 720 Digitized for FRASFEoRr notes see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 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 5,610 1,642 3,968 111.615 18,213 65,389 10,330 17,683 4,641 1973—Dec. 140,020 7,210 2,558 4.652 127,586 22,688 71,232 11,612 054 5,224 1974—Apr. 145,918 8,275 3,218 5,057 131,978 23,941 74,193 12,187 657 5,665 ..........May 147,467 9,028 3,488 5,540 132,328 24,234 71,692 14,388 015 6,110 ...........June 145,057 10,129 4,373 5,757 128.616 25,313 66,855 15,030 418 6,312 ...........July 148.719 9,419 4,123 5,296 132,774 26,007 68,772 16,304 690 6,527 ...........Aug. 147.720 9,981 5,058 4,923 131,016 26,337 66,071 17,488 121 6,723 ...........Sept. 145,906 10,449 5,853 4,596 128,910 26,619 62,606 18,171 514 6,548 ...........Oct. 150,275 11,901 6,249 5.652 131,619 27,717 63,596 19,979 327 6,755 ..........Nov. 151,828 11,981 5,807 6,173 132,915 26,903 65,642 20,184 187 6,932 ..........Dec. 151,049 11,830 6,354 5,476 132,f 26,988 64,093 21,682 924 6,532 1975—Jan. 151,550 12,560 6,606 5,954 132,486 28,154 63,327 21 ,950 055 6,505 ...........Feb.r 155,056 15,405 8,848 6,557 133,396 28,148 63,362 22,567 319 6,254 ...........Mar. 155,485 14,050 7,818 6,223 135,350 30,038 62,223 23,216 873 6,085 ...........Apr.? 54,878 3,050 847 2,202 50,406 7,955 29,229 6,781 441 1,422 1972—Dec. . Payable in U.S. dollars 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 502 2,158 1973—Dec. 94,921 6,640 2,378 4,262 r85,619 15,783 47.847 9,195 794 2,662 1974—Apr. 100,714 7,685 3,021 4,664 89,848 16,694 50.848 9,817 490 3,181 ...........May 102,302 8,414 3,279 5.135 90,359 17,070 48,909 11,630 750 3,529 ...........June 102,432 9,494 4,160 5,334 89,264 18,438 45,768 12,337 721 3,675 ...........July 106,909 8,786 3,932 4,853 94,178 19,456 48,394 13,508 821 3,945 ...........Aug. 106,004 9,294 4,833 4,461 92,630 19,599 46,020 14,533 478 4,080 ...........Sept. 103,934 9,905 5,650 4,255 90,136 19,481 42,690 15,076 889 3,893 ...........Oct. 107,427 11,215 6,023 5,192 92,233 20,242 43,147 16,789 054 3,979 ..........Nov. 107,813 11,435 5,640 5,795 92,428 19,292 43,623 17,443 070 3,950 ..........Dec. 108,099 11,367 6,202 5,164 92,957 19,969 42,800 18,342 846 3,776 1975—Jan. 106,013 12,062 6,458 5,603 90,317 20,079 40,626 18,707 905 3,634 ...........Feb.r 109,366 14,794 8,659 6.135 91,207 19,814 41,160 19,302 931 3,365 ...........Mar. 110,296 13,395 7,634 5,760 93,491 21,529 40,932 19,908 121 3,411 ..........Apr.? IN UNITED KINGDOM 43,467 1,453 113 1,340 41,020 2,961 24.596 6,433 994 1972—Dec. .. .Total, all currencies 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 1,990 1973—Dec. 68,959 3,123 409 2,714 63,914 4,975 36,524 9,240 1,922 1974—Apr. 71,982 3,729 749 2,979 66,156 4,890 39.596 9,273 2,097 ...........May 71,305 3.744 606 3,138 65,429 4,913 36,711 11,289 2,132 ...........June 69,197 3,439 611 2,828 63,557 5,099 34,393 11.543 2,201 ...........July 70,382 3,701 713 2,988 64,309 4,794 33,920 12,737 2,373 ...........Aug. 70,965 3,503 635 2,867 64,919 5,428 33,766 13.544 2,543 ...........Sept. 68,123 3,227 683 2,544 62,621 5,237 30,621 14,051 2,275 ...........Oct. 69,137 4.376 889 3,487 62,397 5.071 30,352 15,454 2,363 ...........Nov. 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 2,418 ...........Dec. 68,451 3.804 873 2,931 62,360 4,567 30,266 16,419 2,287 1975—Jan. 67,038 4.376 913 3,462 60.546 4,693 29.207 16,517 2,117 ..........Feb.' 69,654 5,095 1,224 3,871 62,363 4,630 29,990 17,305 2,196 ...........Mar. 69,248 4,596 1,342 3,254 62.625 5,394 28,666 17,812 2,026 ..........Apr.p 30,810 1,272 72 1,200 29,002 2,008 17,379 5,329 535 1972—Dec. • Payable in U.S. dollars 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 870 1973—Dec. 46,323 2,878 384 2,494 42,453 3,234 23.207 7,401 992 1974—Apr. 49,301 3,481 724 2,757 44.625 3,083 26,010 7,468 1,195 ...........May 48,970 3,516 579 2,937 44,214 3.255 23,669 9,137 1,239 ...........June 48,018 3.176 568 2,608 43,528 3,364 22,388 9,450 1,314 ...........July 49,481 3,448 692 2,756 44,654 3,278 22,558 10,437 1,380 ...........Aug. 50,212 3.177 605 2,572 45,550 3,667 22,818 11,035 1,486 ...........Sept. 48,314 2,988 651 2,337 44,033 3,690 20,203 11,444 1,294 ...........Oct. 49,668 4,037 865 3,172 44,256 3,557 20,200 12,808 1,375 ...........Nov. 49,666 3.744 484 3,261 44,594 3.256 20,526 13,225 1,328 ...........Dec. 48,490 3,599 854 2,744 43,578 3,172 19,061 13,736 1,313 1975—Jan. 46,698 4,164 895 3,269 41,350 3,266 17,673 13,932 1,184 ...........Feb.r 49,533 4.805 1,189 3,616 43.546 3.072 19,128 14,688 1,183 ..........Mar. 49,177 4,297 1,313 2,984 43,758 3,886 17,997 15,158 1,122 ..........Apr.P IN BAHAMAS AND CAYMANS l 12,643 1,220 11,260 1,818 8,105 338 163 1972—Dec. .. .Total, all currencies 23,771 1,573 21,747 5,508 14,563 676 451 1973—Dec. 28,778 2,283 26,017 7,102 16,809 106 479 1974—Apr. 30,864 2,567 27,706 8,255 17,217 233 591 ...........May 31,219 2,855 27,725 7,642 17,593 490 639 ...........June 30,403 3,684 26,039 7,663 16,223 153 681 ...........July 32,317 2,909 28,670 8,079 18,403 188 738 ..........Aug. 30,080 3,721 25,626 7,072 16.259 295 733 ...........Sept. 30,071 4,311 24,995 7,211 15,650 135 765 ...........Oct. 32,313 4,426 27,107 8,538 16,427 141 r779 ...........Nov. 31,731 4,815 26,138 7,702 16,426 011 778 ...........Dec. 33,129 5,036 27,341 8,269 16,852 220 752 ,1975—Jan. 33,532 5,243 27,496 8,975 16.260 262 793 ............Feb. 33,791 7,228 25,873 8,498 15,132 243 690 ............Mar. 2 35,665 6,529 28,425 9,647 16,460 318 711 ............Apr.p Digitized for FFRoAr SnoEteRs see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 1975 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments1 197 2 325 50,934 215,530 197 3 251 52,070 217,068 1969..................... 1,491 1,062 161 183 86 663 534 197 4 418 55.600 16.838 1,141 697 150 173 121 372 443 1974—June.. 384 54,442 17,014 19712 / \ l 1 , , 5 6 0 48 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 July.. 330 54,317 16,964 A Se u p g t . .. . 4 3 1 7 1 2 5 5 3 3 , , 6 8 8 4 1 9 1 1 6 6 , , 9 8 1 9 7 2 1972 2 / \ 1 2 , , 9 3 6 7 5 4 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 3 4 07 0 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 Oct... 376 54,691 16,875 1973..................... 3,160 2,586 37 427 109 1,116 770 Nov.. 626 55,908 16,865 Dec.. 418 55.600 16.838 1974—Apr.......... 3,581 2,967 60 346 209 1,487 930 May......... 3,669 3,037 76 329 227 1,441 980 1975—Jan... 391 58,001 16,837 June......... 3,661 3,049 62 369 181 1,418 927 Feb. . 409 60,864 16,818 July......... 3,771 3,223 74 341 133 1,441 828 Mar.. 402 60,729 16,818 Aug.......... 3,504 2,941 51 369 144 1,436 872 Apr... 270 60,618 16,818 Sept......... 3,073 2,491 30 362 189 1,194 864 May. 310 61,539 16,818 Oct........... 2,696 2,130 25 324 216 1,118 835 June.. 373 61,406 16,803 Nov......... 2,996 2,378 15 325 277 1,283 942 Dec.......... 3,293 2,572 56 403 261 1,340 943 1 Marketable U.S. Treasury bills, certificates of in­ 1975—Jan........... 3,227 2,519 45 316 348 1,134 1,113 debtedness, notes, and bonds and nonmarketable U.S. Feb . 3,328 2,512 48 356 411 1,076 1,134 Treasury securities payable in dollars and in foreign Mar.p.... 3,226 2,449 39 347 391 1,053 1,107 currencies. Apr.**.. .. 3,359 2,449 39 313 559 1,065 1 ,277 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 currenc:ies 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—June....................... 2,375 1,937 438 4,708 4,057 303 348 2,564 2,109 454 4,894 4,186 383 326 J 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,000 4,467 289 244 1972—Mar........................ 2,844 2,407 437 5,173 4,557 317 300 2,925 2,452 472 5,326 4,685 374 268 Sept........................ 2,933 2,435 498 5,487 4,833 426 228 / 3,119 2,635 484 5,721 5,074 410 237 \ 3,452 2,963 490 6,364 5,696 393 274 1973—Mar........................ 3,377 2,876 501 7,101 6,213 458 429 June....................... 3,370 2,808 562 7,371 6,520 493 358 Sept........................ 3,668 2,973 694 7,719 6,780 528 411 Dec......................... 4,094 3,326 768 8,512 7,596 485 431 1974—Mar........................ 4,523 3,636 887 10,503 9,561 400 542 June....................... 5,248 4,223 1,024 11,071 10,135 420 516 Sept........................ 5,747 4,690 1,057 10,725 9,748 419 558 Dec.^..................... 5,929 4,909 1,020 11,286 10,209 461 616 i Data on the 2 lines shown for this date differ preceding date; figures on the second line are compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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.?5 Dec. Mar. June Sept. Dec.p Europe: Austria........................................................ 3 5 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........................... 234 238 220 246 314 284 337 345 322 340 Greece......................................................... 40 21 28 28 40 51 87 76 69 65 Italy............................................................. 116 133 143 150 143 244 335 409 431 418 Netherlands................................................ 125 114 104 113 107 112 103 126 144 147 Norway....................................................... 9 9 8 10 9 18 22 35 32 36 Portugal...................................................... 13 24 17 20 19 49 112 101 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................................................ 102 92 112 106 136 101 91 78 154 136 Turkey......................................................... 18 26 28 38 25 34 41 46 41 45 United Kingdom...................................... 934 1,132 1,253 1,429 1,235 1,544 1,837 1,871 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 2,376 2,742 3,087 3,071 3,444 4,240 4,574 4,438 4,574 Canada............................................................ 260 330 305 297 290 1,245 1,534 1,577 1,570 1,617 Latin America: Argentina.................................................... 22 19 19 28 36 47 52 53 59 69 Bahamas..................................................... 425 208 307 325 281 626 746 977 518 594 Brazil........................................................... 64 78 125 160 119 231 410 523 419 460 Chile............................................................ 20 6 9 14 20 43 78 64 124 103 Colombia.................................................... 9 18 22 13 14 40 44 51 49 50 Cuba............................................................ * * * * * 1 1 1 1 1 Mexico......................................................... 46 77 76 64 64 235 260 263 287 292 Panama....................................................... 13 14 19 21 28 61 94 84 114 132 Peru............................................................. 15 17 11 15 13 47 65 60 40 43 Uruguay...................................................... 2 3 2 2 2 5 6 5 6 5 Venezuela................................................... 36 50 43 53 49 134 136 172 190 193 Other L.A. republics................................ 51 45 60 63 83 134 172 172 182 193 Neth. Antilles and Surinam................... 6 5 7 8 25 13 13 16 14 20 Other Latin America................................ 22 37 59 50 81 222 167 157 169 148 Total.................................................... 733 577 761 818 815 1,838 2,245 2,599 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 94 120 180 119 127 137 Hong Kong................................................ 41 24 19 19 19 49 69 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 ........................................................... 297 374 374 352 346 901 1,224 979 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 19 21 22 23 24 Other Asia.................................................. 173 262 404 431 547 239 264 313 311 386 Total.................................................... 700 844 1,054 1,089 1,240 1,646 2,089 1,850 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.............................................. 125 134 156 114 129 127 155 199 205 240 Total.................................................... 168 212 206 172 193 216 253 314 325 378 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........................................ 4,094 4,523 5,248 5,747 5,929 8,512 10,503 11,071 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. □ JULY 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period Total liabilities 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 r ca Japan O A t s h i e a r Africa o A th l e l r 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 1 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 1 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—Mar.......................... 3,093 3,142 129 713 737 175 60 665 137 359 81 85 June......................... 3,300 3,206 108 712 748 188 61 671 16! 377 86 93 Sept.......................... 3,448 3,187 128 695 757 177 63 662 132 390 89 96 1 / 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ 3,628 3,391 191 744 793 187 64 703 133 378 86 111 197 3—Mar.......................... 3,817 3,534 156 802 807 165 63 796 123 393 105 125 June.......................... 3,830 3,592 180 805 819 146 65 825 124 390 108 131 Sept........................... 4,063 3,755 216 822 836 147 73 832 134 449 108 137 Dec........................... 3,945 3,823 290 763 892 145 79 824 122 450 115 143 1974—Mar.......................... 3,859 3,940 368 736 928 194 81 800 118 448 119 147 June.......................... 3,550 3,938 363 696 948 184 138 742 117 477 122 149 Sept........................... 3,355 4,055 370 702 992 181 145 776 114 523 118 133 Dec.27....................... 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 money2 bills, 3 months money deposit money 3 60-90 money 5 3 months money rate 3 months rates days4 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—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 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 3.38 4.62 5.53 4.13 6.50 May............. 6.89 6.88 10.00 9.47 7.81 6.25 7.56 3.38 5.32 3.82 1.98 6.50 June............. 6.96 6.88 9.72 9.43 7.00 6.25 7.31 4.91 2.78 1.37 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 $31,483 million and $31,609 million, respectively, on April 30, 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

JULY 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 June 30, 1975 Rate as of June 30, 1975 Country Country Per Month Per Month cent effective cent effective Argentina.................................... 18.0 Feb. 1972 7.0 May 1975 Austria.......... ..................... 6.0 Apr. 1975 Japan........................................ 8.0 June 1975 Belgium ............. ......... 6.5 May 1975 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. ............................. 9.5 June 1975 Switzerland............................. 4.5 May 1975 Germany Fed. Rep. of........... 4.5 May 1975 United Kingdom................... 10.0 May 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, 4l/i Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5V^ 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—June.......... 148.34 5.5085 2.6366 103.481 16.754 20.408 39.603 12.735 239.02 .15379 .35340 July........... 147.99 5.4973 2.6378 102.424 16.858 20.984 39.174 12.759 238.96 .15522 .34372 Aug........... 148.24 5.3909 2.5815 102.053 16.547 20.912 38.197 12.525 234.56 .15269 .33082 Sept........... 144.87 5.2975 2.5364 101.384 16.111 20.831 37.580 12.316 231.65 .15103 .33439 Oct............ 130.92 5.4068 2.5939 101.727 16.592 21.131 38.571 12.416 233.29 .14992 .33404 Nov........... 131.10 5.5511 2.6529 101.280 16.997 21.384 39.836 i2.397 232.52 .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 May.......... 134.04 6.0033 2.8631 97.222 18.299 24.655 42.546 12.391 232.05 .15937 .34314 June.......... 133.55 6.0338 2.8603 97.426 18.392 24.971 42.726 12.210 228.03 .15982 .34077 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—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 May.......... 44.278 8.0000 41.581 131.66 20.198 4.0933 146.69 1.7871 25.422 39.851 232.05 June.......... 43.856 8.0000 41.502 130.86 20.393 4.1124 146.31 1.7922 25.532 40.086 228.03 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 BUSINESS FINANCE □ JULY 1975 SALES, REVENUE, PROFITS. AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1972 1973 1974 Industry 1972 1973 1974 IV III IV I II III IV Total (170 corps.): Sales........................................ 371,946 442,254 563,950 100,194 102,932 109,967 108,370 120,985 126,797 '142,974 '144,936 149,243 Total revenue....................... 376,604 448,795 572,368 101,078 104,181 111,526 109,984 123,108 128,695 '145,125 '147,134 151,409 Profits before taxes............. 41,164 53,833 67,650 12,003 12,672 14,009 12,411 14,742 r16,588 18,191 '17,837 15,033 Profits after taxes................. 21,753 28,772 32,502 5,931 6,769 7,491 6,762 7,750 7,739 9,280 '8,420 7,068 Memo: PAT unadj.2.... 21,233 28,804 32,705 5,894 6,754 7,385 6,732 7,930 7,626 9,210 8,487 7,383 Dividends.............................. 10,538 11,513 12,302 2,877 2,639 2,715 2,767 3,393 2,906 2,928 '3,076 3,390 Nondurable goods industries (86 corps.):3 Sales........................................ 176,329 210,118 308,699 46,815 47,519 50,223 53,168 59,207 '68,767 '77,090 '80,425 82,417 Total revenue....................... 178,915 213,904 314,256 47,023 48,259 51,191 54,098 60,357 r70,049 '78,552 '81,905 83,746 Profits before taxes............. 21,799 30,200 46,380 6,479 6,473 7,129 7,610 8,988 11,880 11,972 12,595 9,930 Profits after taxes................. 11,154 15,538 20,536 2,946 3,390 3,667 4,018 4,463 5,056 5,728 5,464 4,291 Memo: PAT unadj.2___ 10,859 15,421 20,433 3,035 3,348 3,597 3,957 4,517 4,957 5,677 5,389 4,411 Dividends.............................. 5,780 6,103 6,872 1,476 1 ,480 1,462 1,527 1,633 1,625 1,645 1 ,722 1,882 Durable goods industries (84 corps.):4 Sales........................................ 195,618 232,136 255,251 53,379 55,413 59,744 55,202 61,778 58,029 65,884 64,511 66,826 Total revenue....................... 197,690 234,891 258,112 54,055 55,922 60,335 55,886 62,751 58,646 66,573 65,229 67,663 Profits before taxes............. 19,365 23,633 21.271 5,524 6,199 6,880 4,801 5,754 *•4,708 6,219 '5,242 5,102 Profits after taxes................. 10,599 13,234 11,966 2,984 3,379 3,824 2,744 3,287 '2,683 3,552 '2,956 2,776 Memo: PAT unadj.2.... 10,374 13,383 12.272 2,859 3,406 3,788 2,775 3,413 2,669 3,533 3,098 2,973 Dividends.............................. 4,758 5,410 5,430 1,401 1 ,159 1,253 1,240 1,760 1,281 1,283 '1,354 1 ,508 Selected industries: Food and kindred prod. (28 corps.): Sales........................................ 37,624 42,628 52,753 10,039 9,561 10,183 11,014 11,871 11,885 12,729 '13,663 14,476 Total revenue....................... 38,091 43,198 53,728 10,115 9,711 10,348 11,201 11,938 12,110 12,996 '13,939 14,683 Profits before taxes............. 3,573 3,957 4,603 960 897 962 1,031 1,067 1,046 1,190 1,289 1,077 Profits after taxes................. 1,845 2,063 2,298 490 474 499 r546 543 529 607 645 517 Memo: PAT unadj. 2... . 1,805 2,074 2,328 452 453 501 r546 573 533 610 646 540 Dividends.............................. 893 935 1,010 227 230 230 236 240 243 248 253 267 Chemical and allied prod. (22 corps.): Sales........................................ 36,638 43,208 55,084 9,593 10,153 10,693 10,828 11,534 12,507 13,892 14,606 14,078 Total revenue........................ 37,053 43,784 55,677 9,723 10,264 10,849 10,968 11,704 r 12,667 14,066 14,778 14,165 Profits before taxes............. 4,853 6,266 8,264 1,280 1,487 1,606 1,599 1,572 1,856 2,293 2,194 1,920 Profits after taxes................. 2,672 3,504 4,875 669 835 886 901 883 1 ,044 1,247 1,223 1 ,362 Memo: PAT unadj.2.... 2,671 3,469 4,745 712 834 884 871 880 1 ,031 1,245 1,180 1 ,289 Dividends.............................. 1,395 1,496 1,646 378 346 359 374 417 383 405 422 437 Petroleum refining (15 corps.): Sales........................................ 74,662 93,505 165,150 19,925 20,477 21,689 23,586 27,752 '36,103 '41,362 '42,747 44,938 Total revenue....................... 76,133 95,722 168,680 19,845 20,892 22,258 23,988 28,584 '36,913 '42,261 '43,659 45,847 Profits before taxes............. 11,461 17,494 30,659 3,717 3,514 3,884 4,371 5,724 8,296 7,564 8,339 6,458 Profits after taxes................. 5,562 8,550 11,775 1,509 1,760 1,899 2,230 2,662 3,098 3,349 3,181 2,147 Memo: PAT unadj.2___ 5,325 8,505 11,747 1,578 1 ,737 1,888 2,192 2,688 3,011 3,304 3,132 2,299 Dividends.............................. 2,992 3,147 3,635 746 777 748 789 832 864 853 899 1,019 Primary metals and prod. (23 corps.): Sales........................................ 34,359 42,400 54,045 9,099 9,635 10,784 10,602 11,379 11,888 13,976 14,285 13,895 Total revenue....................... 34,797 43,104 55,049 9,253 9,733 10,891 10,764 11,715 12,045 14,171 14,504 14,328 Profits before taxes............. 1,969 3,221 5,580 589 618 885 799 919 '973 1,586 '1,791 1,229 Profits after taxes................. 1,195 1,966 3,199 302 383 542 480 561 589 927 '1,028 655 Memo: PAT unadj.2. 1,109 2,039 3,485 256 397 538 496 608 607 942 1,137 799 Dividends.............................. 653 789 965 168 200 178 184 227 221 209 238 297 Machinery (27 corps.): Sales........................................ 55,615 65,041 73,452 15,018 14,828 16,035 16,306 17,871 16,830 18,836 18,853 18,935 Total revenue....................... 56,348 65,925 74,284 15,203 14,997 16,241 16,519 18,168 '17,012 19,023 19,075 19,174 Profits before taxes............. 6,358 7,669 7,643 1,810 1,705 1,880 1,936 2,149 1,829 2,074 1,943 1,797 Profits after taxes................. 3,522 4,236 4,213 1,017 933 1,034 1.069 1,200 1,006 1,149 '1,074 985 Memo: PAT unadj.2.... 3,388 4,208 4,168 902 931 1,020 1.070 1,188 996 1,137 1,096 939 Dividends.............................. 1,497 1,606 1,839 375 389 401 407 410 441 441 '476 481 Motor vehicles and equipment (9 corps.): Sales................................... 70,653 83,016 80,386 19,725 21,616 22,256 17,959 21,186 18,467 20,979 19,443 21,497 Total revenue................... 71,139 83,671 80,882 19,946 21,752 22,415 18,142 21,362 18,597 21,146 19,593 21,545 Profits before taxes......... 6,955 7,429 2,919 2,019 2,716 2,704 729 1,280 636 1,115 '231 938 Profits after taxes............. 3,626 3,992 1,686 1,060 1,405 1,446 431 709 369 657 '133 527 Memo: PAT unadj.2.. 3,640 4,078 1,742 1,091 1,429 1,436 450 763 361 648 147 586 Dividends.......................... 1,762 2,063 1,538 599 369 473 404 817 '384 382 386 385 1 Selected items have been revised so that figures for quarters now add to reports made to the Securities and Exchange Commission. Sales are net annual totals. of returns, allowances, and discounts, and exclude excise taxes paid di­ 2 Profits after taxes (PAT) as reported by the individual companies. In rectly by the company. Total revenue data include, in addition to sales, contrast to other profits data in the series, these figures reflect company income from nonmanufacturing operations and nonoperating income. variations in accounting treatment of special charges and credits. Profits are before dividend payments and have been adjusted to exclude 3 Includes 21 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not 4 Includes 25 corporations in groups not shown separately. related primarily to the current reporting period. Income taxes, (not shown) include Federal, State and local government, and foreign. Note—Data are obtained from published reports of companies and Previous series last published in June 1972 Bulletin, p. A-50. 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JULY 1975 □ COMMERCIAL BANKS A 77 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans1 and Total3 Demand ings counts banks U.S. capital De­ Treas­ Other2 ac­ mand Time Time 5 ury counts4 U.S. Govt. Other All commercial banks: 1967—Dec. 30 .... 359,903235,954 62,473 61,477 77,928 451,012395,008 21,883 1,314 5.234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31 401,262265,259 64,466 71,537 83,752 500,657434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 316.... 421,597295,547 54,709 71,341 89,984530,665435,577 27,174 735 5,054208,870 193,744 18,360 39,978 13,661 1970—Dec. 31 461,194313,334 61,742 86,118 93,643 576,242480,940 30,608 1,975 7,938 209,335231,084 19,375 42,958 13,686 1971-Dec. 31 516,564346,930 64,930 104,704 99,832640,255 537,946 32,205 2,908 10,169220,375272,289 25,912 47,211 13,783 1972—Dec. 31 , .598,808414,696 67,028 117,084 113,128739,033 616,037 33,854 4,194 10,875252,223 314,891 38,083 52,658 13,927 1973—Dec. 31 683,799494,947 58,277 130,574 118,276835,224681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Jan. 30___ 674,620485,110 58,810 130,700 103,130811,700652,250 31,660 6,620 9,520 233,460 370,990 65,830 58,350 14,180 Feb. 27___ 681,360491,950 57,670 131,740 102,410818,690652,670 31,620 6,200 6,650233,240374,960 68,090 58,730 14,202 Mar. 27 691,080500,100 57,510 133,470 104,430831 ,530661 ,180 32,030 6,490 6,110235,830380,720 69,930 59,310 14,236 Apr. 24___ 699,290508,140 56,410 134,740 102,360838,740669,730 31,450 7,290 5,900236,170388,920 67,580 59,950 14,261 May 29___ 703,820514,280 54,080 135,460 115,575 857,695 683,175 34,870 8,200 5,940 238,215 395,950 69,910 60,330 14,290 June 30___ 718,713 528,951 52,114 137,648 126,487 884,295 709,917 42,016 8,903 8,367 252,434 398,197 67,548 61,623 14,337 July 31___ 720,730531,580 52,230 136,920 107,850872,560695,230 33,580 9,680 4,360 243,870403,740 68,030 61 ,530 14,367 Aug. 28___ 722,110533,320 52,010 136,780 100,610865,740688,490 30,530 9,970 4,070 235,780408,140 67,230 61 ,530 14,383 Sept. 25___ 721,160532,890 50,690 137,580 107,390873,710692,830 29,760 10,610 7,380 236,550408,530 67,920 61 ,850 14,398 Oct. 307.. .723,330534,520 50,730 138,080 110,770880,750700,420 33,150 10,180 3,080243,090410,920 68,350 62,180 14,422 Nov. 27___ 729,640539,400 52,140 138,100 116,220894,530708,150 34,230 10,310 3,910 248,730410,970 71,470 62,210 14,440 Dec. 31___ 744,152 549,203 54,453 140,496 128,055 919,612747,951 43,483 11,496 4,807 267,534420,630 58,375 63,655 14,465 Members of F.R. System: 1967—Dec. 30 293,120 196,849 46,956 49,315 68,946373,584 326,033 20,811 1,169 4,631 151,980 147,442 5,370 28,098 6,071 1968-Dec. 31....... 325,086220,285 47,881 56,920 73,756412,541 355,414 23,519 1,061 4,309 163,920 162,605 8,458 30,060 5,978 1969—Dec. 316... .336,738242,119 39,833 54,785 79,034432,270349,883 25,841 609 4,114 169,750 149,569 17,395 32,047 5,869 1970—Dec. 31 365,940253,936 45,399 66,604 81,500465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,766 1971-Dec. 31....... 405,087277,717 47,633 79,738 86,189 511,353425,380 30,612 2,549 8,427 174,385209,406 25,046 37,279 5,727 1972—Dec. 31 465,788 329,548 48,715 87,524 96,566 585,125482,124 31,958 3,561 9,024 197,817239,763 36,357 41,228 5,704 1973—Dec. 31___ 528,124 391,032 41,494 95,598 100,098 655,898 526,837 34,782 5,843 8,273 202.564275.374 55,611 44,741 5,735 1974—Jan. 30___ 518,541 381,344 41,699 95,498 88,960635,219 501,260 30,003 5.690 7,621 178,457 279,489 61,585 44,829 5,744 Feb. 27___ 522,816 385,879 40,922 96,015 87,753 639,172 500,113 29,753 5,273 5,084 178,731 281,272 63,865 45,054 5,747 Mar. 27___ 529,961 392,461 40,537 96,963 89,568 649,129 506,641 30,083 5,558 4,817 180,862 285,321 65,427 45,491 5,754 Apr. 24___ 535,917 399,092 39,273 97,552 87,005 653.285 512,792 29,396 6,364 4,743 179,927 292,362 62,859 45,896 5,763 May 29___ 538,801 403,619 37,282 97,900 99,155 669,357 524,837 32,452 7,274 4,746 182,060298,305 64,820 46,090 5,763 June 30___ 550,388415,061 35,934 99,393 108,971 692,199 547,031 39,211 7,818 6,624 193,979 299,400 62,836 46,946 5,761 July 31___ 552,643 418,088 35,858 98,697 91,430680,511 533,807 31 ,153 8,598 3,180 186,360304,516 63,042 46,907 5,766 Aug. 28... .552,845 418,727 35,878 98,240 84,947 673,296 527,573 28,487 8,887 2,958 179,429 307,812 61,781 46,816 5,766 Sept. 25 ... . 550,843417,631 34,683 98,529 91,002679,160531,194 27,831 9,522 5,782 180,114307,945 62,166 47,054 5,774 Oct. 307... 548,622415,941 34,813 97,868 93,674680,173 535,128 31,043 9,089 2,117 184,573 308,306 60,803 47,131 5,775 Nov. 27___ 556,088421,428 36,394 98,266 98,603 694,743 542,515 32,422 9,222 2,859 189,688 308,324 65,411 47,320 5,774 Dec. 31....... 568,577429,557 38,924 100,096 107,008715,675 575,612 41,062 10,052 3,183 204,232 317,083 52,856 48,244 5,780 1 “Total loans” include Federal funds sold, and securities purchased Note.—Data are for all commercial banks in the United States (in­ under resale agreements, figures for which are included in “Federal funds cluding Alaska and Hawaii, beginning with 1959). Commercial banks sold, etc.,” on p. A-l 6 of the May 1975 Bulletin. represent all commercial banks, both member and nonmember; stock Effective June 30, 1971, Farmers Home Administration notes were savings banks; and nondeposit trust companies. classified as “Other securities” rather than “Loans.” As a result of this Effective June 30, 1969, commercial banks and member banks exclude change, approximately $300 million was transferred to “Other securities” a small national bank in the Virgin Islands; also, member banks exclude, for the period ending June 30, 1971, for all commercial banks. and noninsured commercial banks include through June 30, 1970, a See also table (and notes) at the bottom of p. A-24. small member bank engaged exclusively in trust business; beginning 2 See first 2 paragraphs of note 1. 1973, exclude 1 national bank in Puerto Rico. 3 Reciprocal balances excluded. Beginning May 1974, member banks exclude and noninsured commercial 4 Includes items not shown separately. See also note 1. banks include 1 bank and beginning Aug. 1974, 2 banks engaged ex­ 5 See third paragraph of note 1 above. clusively in trust business. 6 Figure takes into account the following changes beginning June 30, Comparability of figures for classes of banks is affected somewhat by 1969: (1) inclusion of consolidated reports (including figures for all bank- changes in F.R. membership, deposit insurance status, and by mergers, premises subsidiaries and other significant majority-owned domestic etc. subsidiaries) and (2) reporting of figures for total loans and for individual Figures are partly estimated except on call dates. categories of securities on a gross basis—that is, before deduction of For revisions in series before Dec. 30, 1967, see earlier Bulletins. valuation reserves—rather than net as previously reported. 7 Member bank data for Oct. exclude assets of $3.6 billion of one large bank. 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Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman George W. M itchell, Vice Chairman Jeffrey M. Bucher Robert C. H olland Henry C. W allich Philip E. Coldwell Philip C. Jackson, Jr. 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 J R G o o o h D b r n e i d r r o e M t c n t . o J B . r D . L e G a n w k ri l r m e e w r n , c o M e o , d a , D n A a ep g s u i s n i t s y g t a M D n i t a r n e D a c i g t r o e in r c g to r J J R Jo o a o y s h C b e n h e P p r a h a S i t u r . R m l S R . a o B n i C l p r o o p e e m y n y n o n , e n e , , m A A A a ss s d n i s v s , i i t s S a s t e a p n r n e t c t t t i o o a t o l t t h h A t e h e s e s B B is B o o t o a a a a r n r d d r t d t o the J M S A . t r u B e C t r p o h h r h a u a a e r r r y d n l L e A H s . . l B P t A a m r x r o a i t i n l d e r n a e o , , , d S A M , p s a e A s c n i d s i a a v t g a i l s i n n e A t g r s t s o t D i o s i t t r h a t e h e n c e t t B o B t o r o o a a r th r d d e and Program Director for Contingency Planning Joh B n o a J r . d Hart, Special Assistant to the Board No t r o m t a he n d B o R a . rd V. Bernard, Special Assistant William W. Layton, Director of Equal Frank O’Brien, Jr., Special Assistant to the Employment Opportunity Board Brenton C. Leavitt, Program Director for Donald J. Winn, Special Assistant to the Banking Structure Board Peter E. Barn a, Program Director for DIVISION OF RESEARCH AND STATISTICS Bank Holding Company Analysis Lyle E. Gramley, Director Peter M. Keir, Adviser James L. Kichline, Adviser Stanley J. Sigel, Adviser DIVISION OF FEDERAL RESERVE BANK Joseph S. Zeisel, Adviser OPERATIONS LEGAL DIVISION James B. Eckert, Associate Adviser Edward C. Ettin, Associate Adviser Ronald G. Burke, Director John D. Hawke, Jr., General Counsel John H. Kalchbrenner, Associate Adviser James R. Kudlinski, Associate Director John Nicoll, Deputy General Counsel John J. Mingo, Associate Adviser *E. Maurice McW hirter, Associate Director Baldwin B. Tuttle, Assistant General Eleanor J. Stockwell, Associate Adviser William H. Wallace, Associate Director Counsel Robert M. Fisher, Assistant Adviser W alter A. Althausen, Assistant Director Charles R. McNeill, Assistant to the J. Cortland G. Peret, Assistant Adviser Harry A. Guinter, Assistant Director General Counsel Stephen P. Taylor, Assistant Adviser Thomas E. Mead, Assistant Director Allen L. Raiken, Adviser Helmut F. Wendel, Assistant Adviser P. D. Ring, Assistant Director Gary M. Welsh, Adviser Levon H. Garabedian, Assistant Director A 78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF DATA PROCESSING OFFICE OF SAVER AND CONSUMER AFFAIRS DIVISION OF INTERNATIONAL FINANCE Charles L. Hampton, Director Frederic Solomon, Assistant to the Ralph C. Bryant, Director Bruce M. Beardsley, Associate Director Board and Director John E. Reynolds, Associate Director Glenn L. Cummins, Assistant Director Janet O. Hart, Deputy Director Robert F. Gemmill, Adviser Warren N. Min ami, Assistant Director Robert S. Plotkin, Assistant Director Reed J. Irvine, Adviser Robert J. Zemel, Assistant Director Helen B. Junz, Adviser Samuel Pizer, Adviser OFFICE OF THE SECRETARY George B. Henry, Associate Adviser DIVISION OF PERSONNEL Charles J. Siegman, Assistant Adviser Keith D. Engstrom, Director T G h r e if o f d it o h r e L . E . G A ar ll w i o so o n d , , S A e s c s r is e t t a a n ry t Secretary Edwin M. Truman, Assistant Adviser Charles W. Wood, Assistant Director tRobert Smith III, Assistant Secretary OFFICE OF THE CONTROLLER DIVISION OF BANKING SUPERVISION AND REGULATION John Kakalec, Controller Tyler E. Williams, Jr., Assistant Controller Brenton C. Leavitt, Director Frederick R. Dahl, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director Walter W. Kreimann, Director John T. McClintock, Assistant Directoi Donald E. Anderson, Assistant Director Thomas A. Sidman, Assistant Director John D. Smith, Assistant Director William W. Wiles, Assistant Director John E. Ryan, Adviser *On leave otfO anb sleonacne .from the Federal Reserve Bank of Dallas. A 79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 Federal Open Market Committee Arthur F. Burns, Chairm an Alfred Hayes, Vice Chairm an Ernest T. Baughman David P. Eastburn George W. Mitchell Jeffrey M. Bucher Robert C. Holland Henry C. Wallich Philip E. Coldwell Bruce K. MacLaury Philip C. Jackson, Jr. Robert P. Mayo Arthur L. Broida, Secretary Lyle E. Gramley, Economist Murray Altmann, Deputy Secretary (Domestic Business) Normand R. V. Bernard, Assistant Robert Solomon, Economist Secretary (International Finance) Thomas J. O’Connell, General Counsel Edward G. Boehne, Associate Economist Edward G. Guy, Deputy General Counsel Ralph C. Bryant, Associate Economist John Nicoll, Assistant General Counsel Richard G. Davis, Associate Economist J. Charles Partee, Senior Economist Ralph T. Green, Associate Economist Stephen H. Axilrod, Economist John Kareken, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist Karl O. Scheld, Associate Economist 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 W illiam F. M urray, 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 James B. M ayer, tw e lfth federal reserve district RESERVE DISTRICT H erbert V. Prochnow, Secretary W illiam J. Korsvik, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 81 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 Miami .................... 33152 Castle W. Jordan W. M. Davis Nashville ............... 37203 John C. Tune Jeffrey J. Wells New Orleans ........ 70161 Floyd W. Lewis George C. Guynn 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 Ronald W. Bailey 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 Richard C. Dunn Portland ................. 97208 Loran L. Stewart Angelo S. Carella Salt Lake City 84110 Sam Bennion A. Grant Holman Seattle .................... 98124 Malcolm T. Stamper James J. Curran * 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 82 Federal Reserve Board Publications Available from Publications Services, Division of Ad­ request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed­ of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) The Federal Reserve System—Purposes and 1967. 29 pp. $.25 each; 10 or more to one address, Functions. 1974. 125 pp. $1.00 each; 10 or more $.20 each. to one address, $.75 each. The Federal Funds Market. 1959. Ill pp. $1.00 Annual Report each; 10 or more to one address, $.85 each. Federal Reserve Bulletin. Monthly. $20.00 per Trading in Federal Funds. 1965. 116 pp. $1.00 year or $2.00 each in the United States and its each; 10 or more to one address, $.85 each. possessions, and in Bolivia, Canada, Chile, Co­ Bank Credit-Card and Check-Credit Plans. 1968. lombia, Costa Rica, Cuba, Dominican Republic, 102 pp. $1.00 each; 10 or more to one address, Ecuador, Guatemala, Haiti, Republic of Honduras, $.85 each. Mexico, Nicaragua, Panama, Paraguay, Peru, El Survey of Financial Characteristics of Con­ Salvador, Uruguay, and Venezuela; 10 or more of sumers. 1966. 166 pp. $1.00 each; 10 or more same issue to one address, $18.00 per year or $1.75 to one address, $.85 each. each. Elsewhere, $24.00 per year or $2.50 each. Survey of Changes in Family Finances. 1968. 321 Federal Reserve Chart Book on Financial and pp. $1.00 each; 10 or more to one address, $.85 Business Statistics. Monthly. Subscription in­ each. cludes one issue of Historical Chart Book. $12.00 Report of the Joint Treasury-Federal Reserve per year or $1.25 each in the United States and Study of the U.S. Government Securities the countries listed above; 10 or more of same issue Market. 1969. 48 pp. $.25 each; 10 or more to to one address, $1.00 each. Elsewhere, $15.00 per one address, $.20 each. year or $1.50 each. Joint Treasury-Federal Reserve Study of The Historical Chart Book. Issued annually in Sept. Government Securities Market: Staff Stud­ Subscription to monthly chart book includes one ies—Part 1. 1970. 86 pp. $.50 each; 10 or more issue. $1.25 each in the United States and countries to one address, $.40 each. Part 2. 1971. 153 pp. listed above; 10 or more to one address, $1.00 and Part 3. 1973. 131 pp. Each volume $1.00; each. Elsewhere, $1.50 each. 10 or more to one address, $.85 each. The Federal Reserve Act, as amended through De­ Open Market Policies and Operating Proce­ cember 1971, with an appendix containing provi­ dures—Staff Studies. 1971, 218 pp. $2.00 each; 10 or more to one address, $1.75 each. sions of certain other statutes affecting the Federal Reserve System. 252 pp. $1.25. Reappraisal of the Federal Reserve Discount Regulations of the Board of Governors of the Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Federal Reserve System. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; 10 or more to one address, $2.50 each. Published Interpretations of the Board of Gov­ ernors, as of December 31, 1974. $2.50. The f E e c r o e n n o c m e, e O tr c i t c o s b e o r f 3 0 P r 31 ic , e 19 D 7 e 0 t , e W rm as in hi a n t g i t o o n n , C D o .C n . ­ Supplement to Banking and Monetary Statistics. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or Sec. 1. Banks and the Monetary System. 1962. more to one address, $4.50 each. Paper ed. $4.00 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 each; 10 or more to one address, $3.60 each. pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Federal Reserve Staff Study: Ways to Moderate Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. Fluctuations in Housing Construction, Dec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. 1972. 487 pp. $4.00 each; 10 or more to one 10. Member Bank Reserves and Related Items. address, $3.60 each. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 Lending Functions of the Federal Reserve pp. $.35. Sec. 12. Money Rates and Securities Banks: A History, by Howard H. Hackley. 1973. Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. 271 pp. $3.50 each; 10 or more to one address, 24 pp. $.35. Sec. 15. International Finance. 1962. $3.00 each. 92 pp. $.65. Sec. 16 (New). Consumer Credit. Introduction to Flow of Funds. 1975. 64 pp. $.50 1965. 103 pp. $.65. each; 10 or more to one address, $.40 each. Industrial Production— 1971 Edition. 1972. 383 Improved Fund Availability at Rural Banks (Re­ pp. $4.00 each; 10 or more to one address, $3.50 port and study papers of the Committee on Rural each. Banking Problems), June 1975. 133 pp. $1.00 The Performance of Bank Holding Companies. each; 10 or more to one address. $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 83 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 B ulletin 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. Capacity Utilization in Major Materials Indus­ Household-Sector Economic Accounts, by David tries. 8/73. F. Seiders. Jan. 1975. 84 pp. Credit-Card and Check-Credit Plans at Commer­ cial Banks. 9/73. Printed in Full in the Bulletin Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corpora­ Staff Economic Studies shown in list below. tions. 10/73. Money Supply in the Conduct of Monetary REPRINTS Policy. 11/73. U.S. Energy Supplies and Uses, Staff Economic (Except for Staff Papers, Staff Economic Studies, and Study by Clayton Gehman. 12/73. some leading articles, most of the articles reprinted do Capacity Utilization for Major Materials: Re­ not exceed 12 pages.) vised Measures. 4/74. Seasonal Factors Affecting Bank Reserves. 2/58. Numerical Specifications of Financial Variables Measures of Member Bank Reserves. 7/63. and Their Role in Monetary Policy. 5/74. Research on Banking Structure and Perform­ Banking and Monetary Statistics, 1973. Selected ance, Staff Economic Study by Tynan Smith. series of banking and monetary statistics for 1973 4/66. only. 3/74 and 7/74. A Revised Index of Manufacturing Capacity, Inflation and Stagnation in Major Foreign In­ Staff Economic Study by Frank de Leeuw with dustrial Countries. 10/74. Frank E. Hopkins and Michael D. Sherman. 11/66. Revision of the Money Stock Measures and Mem­ U.S. International Transactions: Trends in ber Bank Deposits. 12/74. 1960-67. 4/68. Changes in Time and Savings Deposits at Com­ Euro-Dollars: A Changing Market. 10/69. mercial Banks, April-July 1974. 1/75. Recent Changes in Structure of Commercial U.S. International Transactions in 1974. 4/75. Banking. 3/70. Monetary Policy in a Changing Financial Envir­ Measures of Security Credit. 12/70. onment: Open Market Operations in 1974. Monetary Aggregates and Money Market Con­ 4/75. ditions in Open Market Policy. 2/71. The Structure of Margin Credit. 4/75. Interest Rates, Credit Flows, and Monetary Ag­ Changes in Bank Lending Practices, 1974. 4/75. gregates Since 1964. 6/71. New Statistical Series on Loan Commitments at Industrial Production—Revised and New Meas­ Selected Large Commercial Banks. 4/75. ures. 7/71. Recent Trends in Federal Budget Policy. 7/75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 Federal Reserve Bulletin □ July 1975 Index to Statistical Tables References are to pages A-2 through A-77 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, 77 Banks, by classes, 14, 16, 17, 18, 30, 77 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, 77 Bankers balances, 16, 17, 20 Federal Reserve Banks, 10, 72 (See also Foreigners) Subject to reserve requirements, 13 Banks for cooperatives, 38 Discount rates at Federal Reserve Banks (See Interest Bonds (See also U.S. Govt, securities): rates) New issues, 38, 39, 40 Discounts and advances by Reserve Banks (See Loans) Yields and prices, 28, 29 Dividends, corporate, 41, 76 Branch banks: Assets, foreign branches of U.S. banks, 70 EMPLOYMENT, 50, 52 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 22, 71 FARM mortgage loans, 42 Brokerage balances, 69 Federal agency obligations, 9, 10, 11 Business expenditures on new plant and equipment, 41 Federal finance: Business indexes, 50 Receipts and outlays, 32, 33 Business loans (See Commercial and industrial loans) Treasury operating balance, 32 CAPACITY utilization, 50 Federal funds, 5, 16, 18, 21, 27 Capital accounts: Federal home loan banks, 37, 38 Banks, by classes, 14, 17, 22, 77 Federal Home Loan Mortgage Corporation, 37, 42, 43 Federal Reserve Banks, 10 Federal Housing Administration, 42, 43, 44 Central banks, 60, 75 Federal intermediate credit banks, 37, 38 Certificates of deposit, 22 Federal land banks, 37, 38, 42 Commercial and industrial loans: Federal National Mortgage Assn., 37, 38, 42, 43, 44 Commercial banks, 13, 16 Federal Reserve Banks: Weekly reporting banks, 18, 23 Condition statement, 10 Commercial banks: U.S. Govt, securities held, 2, 10, 11, 34, 35 Assets and liabilities, 13, 14, 16, 17, 18, 77 Federal Reserve credit, 2, 4, 10, 11 Consumer loans held, by type, 45 Federal Reserve notes, 10 Deposits at, for payment of personal loans, 24 Federally sponsored credit agencies, 37, 38 Loans sold outright, 25 Finance companies: Number, by classes, 14, 77 Loans, 18, 46, 47 Real estate mortgages held, by type of holder and Paper, 25, 27 property, 42-44 Financial institutions, loans to, 16, 18 Commercial paper, 23, 25, 27 Float, 2 Condition statements (See Assets and liabilities) Flow of funds, 56, 57 Construction, 50, 51 Foreign: Consumer credit: Currency operations, 9, 10 Instalment credit, 45, 46, 47 Deposits in U.S. banks, 3, 10, 17, 21, 72 Noninstalment credit, 45 Exchange rates, 75 Consumer price indexes, 50, 53 Trade, 59 Consumption expenditures, 54, 55 Foreigners: Corporations: Claims on, 66, 67, 68, 72, 73, 74 Profits, taxes, and dividends, 41 Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 Sales, revenue, profits, and dividends of large manufacturing corporations, 76 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 85 References are to pages A-2 through A-77 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 mortgaged, 42^-4 Insured commercial banks, 14, 16, 17, 24 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20, 77 Reserve requirements, member banks, 7 Interest rates: Reserves: Bond and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 44 Residential mortgage loans, 43, 44 Prime rate, commercial banks, 26 Retail credit, 45, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69, 73 SALES, revenue, profits, and dividends of large manu­ Inventories, 54 facturing corporations, 76 Investment companies, issues and assets, 40 Saving: Investments (See also specific types of investments): Flow of funds series, 56, 57 Banks, by classes, 14, 16, 19, 30, 77 National income series, 54, 55 Commercial banks, 13 Savings and loan assns., 31, 35, 42, 44 Federal Reserve Banks, 10, 11 Savings deposits (See Time deposits) Life insurance companies, 31 Savings institutions, principal assets, 30, 31 Savings and loan assns., 31 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 37, 38 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 38, 39, 40 Loans (See also specific types of loans): Yields and prices, 28, 29 Banks, by classes, 14, 16, 18, 30, 77 Special Drawing Rights, 2, 10, 58, 59 Commercial banks, 13, 14, 16, 18, 23, 25, 26 State and local govts.: Federal Reserve Banks, 2, 4, 6, 10, 11 Deposits, 17, 20 Insurance companies, 31, 44 Holdings of U.S. Govt, securities, 34, 35 Insured or guaranteed by U.S., 42, 43, 44 New security issues, 38, 39 Savings and loan assns., 31 Ownership of securities of, 16, 19, 30 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, 77 TAX receipts, Federal, 33 Borrowings at Federal Reserve Banks, 4, 10 Time deposits, 8, 13, 14, 17, 21, 22, 77 Number, by classes, 14, 77 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, 77 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 Yields and prices, 28, 29 PAYROLLS, manufacturing index, 50 Utilities, production index, 49 Personal income, 55 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, 76 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND — ■ Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities -------- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the partic­ n.e.c. Not elsewhere classified 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. 1975 A-76—A-77 facturing corporations ---- July 1975 A-76 Semiannually Flow of funds: Number of banking offices: Assets and liabilities: Analysis of changes ........ Feb. 1975 A-82 1962-73 ....................... Oct. 1974 A-59.14—A-59.28 Flows: On, and not on, Federal 1965-73 ........................ Oct. 1974 A-58—A-59.13 Reserve Par List............ Feb. 1975 A-83 Annually Income and expenses: Bank holding companies: Federal Reserve Banks Feb. 1975 A-80—A-81 Banking offices and depos­ Insured commercial banks June 1975 A-80—A-81 its of group banks, Dec. Member banks: 31, 1974 ....................... June 1975 A-76—A-79 Calendar year ............... June 1975 A-80—A-89 Income ratios ............... June 1975 A-90—A-95 Banking and monetary statistics: 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 July 1975 A-77 Stock market credit ............. Feb. 1975 A-86—A-87 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1975 A-101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis