Federal Reserve Bulletin, 1975-08

A U G U S T 1975 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN NUMBER 8 □ VOLUM E 61 □ AUGUST 1975 C O N T E N T S 463 Recent Developments in A 1 Financial and Business Statistics Corporate Finance A 1 Contents 472 Staff Economic Studies: Summary A 2 U.S. Statistics A 58 International Statistics 474 Statements to Congress A 78 Board of Governors and Staff 505 Record of Policy Actions of the Federal Open Market Committee A 80 Open Market Committee and Staff; Federal Advisory Council 513 Law Department A 81 Federal Reserve Banks and Branches 534 Announcements A 82 Federal Reserve Board Publications 537 Industrial Production A 84 Index to Statistical Tables A 86 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation Statistical Releases: Reference PU B L IC A TIO N S C O M M IT TE E J. Charles Partee Lyle E. Gramley John M. Denkler Frederic Solomon Ralph C. Bryant Joseph R. Coyne John D. Hawke, Jr. 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

R e c e n t D e v e lo p m e n ts in C o rp o ra te F in a n c e This article was prepared in the Capital Mar­ Over the past decade, trends in corporate kets Section of the Division of Research and finance have led to a considerable reduction in Statistics. the relative importance of equity in corporate balance sheets. The sharp increase in debt fi­ The concurrence of rapid inflation and declining nancing in 1974 accelerated this decline, and real economic activity placed unusual financing corporate debt-to-equity ratios rose to unprece­ pressures on nonfinancial business corporations dented levels. In addition, the already unfavor­ in 1974. Even though real business activity able maturity structure of the debt shown on weakened progressively throughout the year, many corporate balance sheets was worsened by current-dollar requirements by industry for the continued heavy reliance on short-term fi­ working capital and investment outlays contin­ nancing. Because of this deterioration, many ued to rise because of the persistent advance of corporations found their credit ratings ques­ prices and costs. Consequently, corporations tioned and their ability to obtain external funds tapped financial markets for a record volume of impaired at a time when their internal funds funds last year. In contrast, during the first half were declining. Market investors became in­ of 1975 total demands on credit markets abated creasingly quality-conscious, requiring large as corporations made sizable cutbacks in inven­ risk premiums for lower-rated corporate issues; tories and fixed investment outlays. Never­ as a result, firms with less than prime credit theless, the volume of bond financing has ratings— including many public utilities— were reached historically high levels in recent months virtually excluded from market participation for as corporations have shifted from short- to many months of last year. long-term debt. Efforts to repair these widespread financial The record total of $77 billion raised by imbalances began late in 1974 and dominated nonfinancial corporations in external markets in corporate financial strategy through the first half 1974 was 15 per cent more than in the boom of 1975. With the economy in the midst of the year of 1973. Rather than sell new equity shares deepest decline of the postwar period, busi­ at depressed 1974 market prices, firms turned nesses curtailed their capital outlays and reduced to debt markets for funds to meet their increased their inventories sharply, thus lessening pres­ financing requirements. Thus, while net stock sures on total external financing. The funding issues of nonfinancial corporations declined to of short-term liabilities in order to restructure $4.1 billion, the lowest volume since 1969, net balance sheets and to rebuild liquidity has been issues of corporate debt soared to a record $73 reflected in the large volume of corporate bond billion. Short-term debt accounted for a signifi­ offerings and the pronounced decline in short­ cant share of this increased corporate borrow­ term borrowings during the first 6 months. ing, with bank loans to business expanding at Meanwhile, the recovery in stock prices has led the same advanced pace in 1974 as in 1973. to an increase in the volume of new equity Corporate issuance of open-market paper also issues, with public utilities accounting for a rose substantially in 1974; this was in contrast large share of this growth. to 1973, when corporations had substituted bank These efforts have improved the financial base loans for funds raised through sales of commer­ of many corporations, though considerable re­ cial paper because of the much lower relative structuring remains to be done. In particular, cost of bank credit. a significant accumulation of financial assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin □ August 1975 probably will not occur until corporate profits The increasing gap between internal funds rebound from their decline earlier this year. and capital outlays reflected in large part the Moreover, for many of the weaker firms, im­ impact of inflation on business investment ac­ proving their financial position is an arduous tivity. Although corporate plant and equipment process, which could conceivably be hindered expenditures in real terms weakened in the first if the economic recovery should sharply in­ half of 1974 and actually declined in the final crease total demands on capital markets. months, these outlays in current dollars were more than 8 per cent higher for the year as a whole than in 1973. The largest increases oc­ C A P IT A L E X P E N D IT U R E S curred among manufacturers of nondurable goods— particularly petroleum, chemicals, and A N D IN T E R N A L F U N D S paper— but there were also strong advances for The gap between corporate internal funds and durable goods manufacturers. In the nonmanu­ capital expenditures widened substantially in facturing sector, public utility outlays expanded 1974 for the fourth consecutive year. As a at a rate close to 10 per cent, even though the result, firms had to turn to external sources of utilities were scaling back their planned ex­ funds to finance more than $44 billion in total penditures throughout the year in response to capital outlays (including inventory investment) sharply rising operating costs, reductions in during the year, $7 billion more than in 1973 consumer demand, and unfavorable terms of and $21 billion more than in 1972. financing. Inventory investment in 1974 was below the record pace of 1973, but it still remained high Capital outlays and internal funds by historical standards. A large part of the Billons of dollars inventory building in the first half of the year was the result of producers’ desires to stockpile materials that had been, or might be, in short supply— especially steel and coal. But as the year progressed, inflation and rising unemploy­ ment adversely affected consumer expenditures, and sales fell off rapidly. The decline in demand resulted in a sizable increase in inventories of finished goods, despite vigorous efforts by re­ tailers to reduce excessive stocks. Unintentional inventory accumulation was most apparent in the fourth quarter in the durable goods indus­ tries, especially in new cars. Whereas outlays for fixed investment and inventories were rising during most of 1974, corporate cash flow— retained earnings plus capital consumption allowances— declined on balance for the year. The reduction in cash flow occurred despite a large increase in before-tax profits, all of which was attributable to an enor­ mous expansion in inventory profits— that is, profits generated by an increase in the value of inventories as a result of inflation. Although inventory profits are taxed the same as all other Internal funds are undistributed profits (including foreign branch profits) plus capital consumption allowances. earnings, they are offset by increased costs of Flow of funds quarterly data for nonfinancial corporations at season­ ally adjusted annual rates. Data for 1975-11 are preliminary. inventories needed for replacement and hence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Corporate Finance 465 C om position of capital outlays Billions of dollars Billions of dollars 10 Other fixed investment includes expenditures for multiunit and 1- Flow of funds quarterly data for nonfinancial corporations at season­ to 4-family residential construction. ally adjusted annual rates. Data for 1975-11 are preliminary. do not provide corporations with internal funds quarter of 1975— in part because of the improve­ for any other purpose. ment in cash flow, but primarily because of With the sharp rise in prices—especially of sharp reductions in capital outlays. Responding fuel— in 1974, inventory profits became ex­ to the accelerating decline in economic activity, tremely large and tended to obscure the picture industrial firms— like the utilities earlier— began of firms’ liquidity. If inventory gains are ex­ to scale down or stretch out their expenditures. cluded from reported profits, the resulting fig­ As a result, the annual rate of outlays for plant ure— profits from current production— shows a sizable decline in corporate after-tax profits from late 1973 to the fourth quarter of 1974, the first sustained decline in such profits since 1969. Corporate profits Retained earnings (adjusted to exclude inven­ Billions of dollars tory profits) fell even more sharply as corpora­ tions increased their dividend payouts. Gains from inventory profits dropped sharply Profits before tax in early 1975, in part because firms liquidated stocks and also because many of them changed their accounting methods from first-in, first-out Inventory profits- (FIFO) to last-in, first-out (LIFO) to minimize the effects of inflation on reported inventory values. The decline in inventory profits contrib­ uted to a sharp reversal in total before-tax profits of nonfinancial corporations in the first two Before tax Excluding inventory profits quarters of this year. Nevertheless, after-tax profits actually improved, as corporate tax lia­ bilities fell significantly because of the sharp After tax Excluding inventory profits drop in inventory profits and the relief obtained through the Tax Reduction Act of 1975. The gap between internal funds and capital Flow of funds quarterly data for nonfinancial corporations at season­ expenditures narrowed markedly in the first ally adjusted annual rates. Data for 1975-11 are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin □ August 1975 and equipment by nonfinancial corporations for the third year in a row, accounting for only dropped $3.6 billion between December and 5 per cent of total market funds raised. The March, and is estimated to have dropped another major supply of funds came from debt markets; $1.9 billion in the second quarter. In addition, long-term borrowings in the form of bond sales liquidation of excess stocks of inventories has and mortgage debt provided 42 per cent of the proceeded at an accelerating rate since the be­ total, while bank loans and sates of open market ginning of the year, Nonfinancial corporations paper contributed approximately 46 per cent. reduced their inventories at seasonally adjusted The low volume of stock financing resulted annual rates of more than $13 billion in the first from the inability or unwillingness of many quarter and more than $30 billion in the second companies to sell new stocks at depressed mar­ (based on preliminary second-quarter figures). ket prices. Except for a brief rally early in 1974, stock prices generally moved lower throughout the year, extending the decline that began in 1973. By early October 1974, the composite E X T E R N A L S O U R C E S index of New York Stock Exchange common O F F U N D S shares had reached a 12-year low of 33. And Despite rising interest rates and greater selec­ even though it moved up slightly before yeartivity on the part erf investors, nonfinancial end, it was down 30 per cent for the year and corporations in 1974 raised more than $77 down about 45 per cent from the peak reached billion from external sources— a record volume. in 1973. With the exception of producers of These funds were used to finance the gap be­ selected materials in short supply and of entween capital outlays and internal funds and for ergy-related industries, almost all sectors par­ acquisitions of liquid and other financial assets. ticipated in the decline. As the figures in Table 1 reveal, net new equity A combination of unfavorable economic financing by business corporations fell sharply developments— chiefly accelerating inflation, TABLE 1 Nonfinancial corporations: Composition of funds raised in financial markets Amounts are shown in billions of dollars. Other credit Total Equity Bonds Mortgages Bank loans market instruments Period Amount Per Amount Per Amount Per Amount Per Amount Per Amount Per cent cent cent cent cent cent 1970 ................... 39.5 100 5.7 14.4 19.8 50.1 5.2 13.2 5.6 14.2 3.2 8.1 1971 ................... 46.8 100 11.4 24.4 18.9 40.4 11.4 24.4 4.4 9.4 .7 1.5 1972 .................. 55.0 100 10.9 19.8 12.5 22.7 15.6 28.4 13.5 • 24.5 2.5 4.6 1973 .................... 67.1 100 7.4 11.0 11.0 16.4 16.1 24.0 30.6 45.6 2.0 3.0 1974 .................... 77.1 100 4.1 5.3 21.3 27.6 10.9 14.1 29.9 38.8 11.0 14.3 1974—1 ............ 75.5 100 6.2 8.2 18.7 24.8 12.6 16.7 33.9 44.9 4.1 5.4 11 .......... 91.8 too 5.0 5.4 20.7 22.6 17.4 19.0 40.7 44.3 8.0 8.7 HI .......... 72.6 100 17.9 24.7 7.3 10.0 25.6 35.3 21.8 30.0 IV ......... 68.7 100 5.2 7.6 27.8 40.5 6.3 9 2 19.4 28.2 10.0 14 6 1975—1 ............ 41.8 100 7.7 18.4 41.8 100.0 3.0 7.2 -12.0 -28.7 1.3 3.1 II ....... 35.1 100 9.7 27.6 39.5 112.5 8.5 24.2 -19.5 -55.5 -3.1 —8.8 Note.—Net funds raised as shown in the flow of funds accounts. Quarterly data are at seasonally adjusted annual rates; those for 1975-11 are preliminary. Other credit market instruments consist of commercial paper and loans from finance companies and the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Corporate Finance 467 higher interest rates, and the increasing slack costs and to strengthen their equity structure in in economic activity— contributed to the poor response to pressures from the regulatory au­ performance of the stock market last year. With thorities. Frequently, however, these firms were short-term interest rates rising rapidly as a con­ able to sell shares only at prices below book sequence of strong cyclical credit demands, an value, which tended to dilute existing share­ escalation of inflation premiums, and a firm holders’ equity. monetary policy, the attractiveness of higher- The unattractiveness of the equity markets as a source of long-term funds was an important factor in explaining the heavy volume of cor­ Stock m arket perform ance porate bond financings last year. Net bond of­ ferings of nonfinancial corporations— at close to $21 billion— exceeded the record of 1970 and might have been even higher had not deterio­ rating market conditions led to cancellations of several large offerings scheduled for the spring and summer. Although the volume of new bond issues was heavy during most of 1974, a number of factors contributed to a deterioration in bond market conditions as the year progressed. As noted earlier, the rapid rise in short-term rates at­ tracted many investors to money market instru­ ments. In addition, in the spring the financing difficulties of two large banks, the omission of a dividend payment by a large public utility, and rumors of the difficulties faced by some other firms led market investors to become in­ creasingly concerned about the ability of cor­ porations to service their debt obligations. As a result, investor preferences shifted toward higher-quality securities, and a wide rate spread developed between yields on prime quality instruments and those with lower credit ratings. From a difference of approximately 75 basis points at the beginning of 1974, the spread between yields on seasoned corporate issues rated Baa and those on prime Aaa issues rose to more than 160 basis points by the year-end. Reflecting these developments, less than 6 per risk equity market instruments was sharply di­ cent of the gross new bond issues sold in 1974 minished. Moreover, during much of the year carried ratings of Baa or less, as compared with the market was disturbed by events associated 12 per cent on average in the preceding 5 years. with the energy shortage and by the prevailing Moreover, most of the lower-rated issues were political uncertainties. sold by utilities that faced a large volume of Almost half of all common stock and virtually maturing debt and thus could not easily post­ all preferred stock issues sold in 1974 were pone financings. those of the electric and gas utilities. Despite The increased selectivity of investors, com­ lower share prices, utilities were forced to seek bined with a reluctance of issuers to offer very equity funds to finance rapidly rising expansion long-term debt at high yields, was reflected in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Federal Reserve Bulletin □ August 1975 TABLE 2 Gross issues of publicly offered corporate bonds Firms with ratings Moody’s rating Maturity (in years) changed (Moody’s) Total Year & A a A a a A B b a el a o w & r N at o e t d Less 1 0 t 1 han 10-19 or 2 m 0 o re Increases Decreases Billion Per cent of total Per cent of total Number dollars 1969 12.7 41 23 22 14 15 3 82 11 20 1970 25.4 48 32 10 10 22 3 75 15 21 1971 24.9 44 21 15 20 7 12 81 14 29 1972 18.4 41 18 9 32 25 5 70 19 25 1973 13.6 55 26 4 15 7 2 90 21 27 1974 25.3 57 29 6 8 29 11 60 39 61 1975-H1 22.7 60 31 7 2 25 22 53 42 24 UnoJudes serial bond issues. a shortening of maturities on new issues. paper expanded by $5.4 billion in 1974— almost Whereas in the 1969-73 period nearly 80 per twice the previous record pace of 1969 and cent of all new bond offerings carried maturities 1970. Like the bond markets, however, the of 20 years or more, 60 per cent of such issues commercial paper market demanded large risk had long maturities in 1974. In fact, a heavy premiums from borrowers, and firms with lower concentration of issues last year had terms of credit ratings were unable to obtain funds from less than 10 years. this source. The development of such a two-tier market The large demands for short-term credit rela­ for long-term debt made it exceedingly difficult tive to the moderate growth in available supplies for corporations with less than prime credit put strong upward pressures on interest rates ratings to borrow. Moreover, as debt burdens during most of last year. Commercial banks expanded and business activity declined, increased their prime lending rates more than Moody’s Investors Service lowered the credit 2 percentage points to a record 12 per cent ratings of more than 60 firms in 1974, in contrast between January and July and also tightened to only 21 in the previous recession year of substantially their nonprice terms of lending. 1970. In light of unfavorable market conditions, Late in the year, however, the increasingly many of these firms decided to postpone, or restrictive lending practices of banks and the cancel, previously scheduled bond issues. developing weakness in economic activity The deterioration in long-term markets in began to dampen the growth in short-term cor­ 1974 contributed to a further increase in the porate borrowings. Subsequently, growth in already bulging demands for credit at commer­ business loans came to a halt and short-term cial banks. Short-term bank loans to nonfinan­ interest rates declined sharply, as corporations cial corporations rose by approximately $30 began to restructure their balance sheets by billion, almost equaling the record borrowing repaying bank loans with funds raised through of 1973 when such loans were bolstered by sales of long-term securities. booming business activity and an artificially As inflation and the higher cost of creditrestrained prime rate. In addition, firms with market borrowing put pressure on cash positions good credit ratings sought short-term funds in 1974, other short-term liabilities of busi­ through sales of commercial paper; following nesses also expanded rapidly. The rate of 3 years of contraction, outstanding open-market growth of trade debt in the first two quarters Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Corporate Finance 469 Selected interest rates stock issues and retentions of profits have amounted to only $166 billion. The sharp in­ crease in debt financing last year resulted in a further reduction in equity cushions. For manu­ facturing corporations— the only group of non­ financial corporations for which complete bal­ ance sheet data are available on a current Bond yields: basis— the relative share of stockholders’ equity Moody’s Baa Measures of had declined to slightly more than 50 per cent risk premium of total assets by the end of 1974, compared with 61 per cent in 1965. Furthermore, the pronounced decline in stock prices during 1973 and 1974 sharply eroded the market valuation of ownership claims. Moody’s Aaa TABLE 3 Capital structure of manufacturing corporations In billions of dollars, unless otherwise noted Col. 3 Aaa utilities New issue End Less: Equals: of Total Liabili­ Stockholders’ col. 1 year assets ties equity (per cent) (1) (2) (3) (4) Bank prime rate 1965 .... 359.1 140.9 218.1 60.8 Commercial paper 1966 .... 402.3 165.5 236.8 58.9 4 to 6-month 1967 .... 437.2 182.9 254.3 58.2 1968 .... 485.9 212.7 273.2 56.2 1969 .... 543.7 246.6 297.1 54.6 1970 .... 578.2 267.4 310.8 53.8 1971 .... 612.8 285.7 327.1 53.4 1972 .... 663.4 310.3 353.1 53.2 Monthly averages. Moody’s Investors Service bond yields for sea­ 1973 .... 742.3 355.9 386.4 52.1 soned Baa and Aaa corporate issues; prime commercial paper, dealer 1974 .... 841.1 413.7 427.4 50.8 offering rates; Aaa utility, weighted averages on new publicly offered bonds rated Aaa, Aa, and A by Moody’s and adjusted to an Aaa utility basis. Source.—Federal Trade Commission, Quarterly Financial Report for Manufacturing Corporations. Data for 1974 have been converted by F.R. to adjust for changes in series coverage of last year was more than half again as large and account classification from previous years. as in 1973. Such growth slowed, however, as business activity slackened; in the fourth quar­ A further result of the growth in debt and ter trade debt contracted sharply, and in the first the simultaneous rise in interest rates has been half of 1975 it fell substantially further. a sizable increase in net interest paid by nonfi­ nancial corporations. In 1974 such interest amounted to $23 billion— almost a fivefold in­ IM P A C T S O N C O R P O R A T E crease over the 1964 total. At the same time corporate holdings of liquid assets rose much F IN A N C IA L S T R U C T U R E less rapidly than total liabilities, making it more The heavy reliance on borrowed funds that difficult for firms to carry their debt burdens. occurred in 1974 was an extension of trends that Although corporations added moderately to their had begun earlier. Since the mid-1960’s non­ holdings of liquid assets— primarily through ac­ financial firms have increased their capital mar­ quisitions of interest-earning time deposits and ket debt by nearly $385 billion while net new commercial paper— short-term debt grew at a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 Federal Reserve Bulletin □ August 1975 mated to have been less than $39 billion at a M easures o f corporate liquidity seasonally adjusted annual rate, or roughly half Per cent the rate of last year. With their financing needs reduced, firms have been able to concentrate on rebuilding liquidity positions and funding short­ Short-term debt term debt. Consequently, between January and Bonds July there was a net reduction of almost $7.5 billion in business loans from commercial banks and outstanding nonfinancial commercial paper. This reduction was accompanied by record- Liquid assets breaking volumes of new corporate bond issues, Current liabilities as firms sought to lengthen the maturity of their debt. In the first two quarters, gross issues of publicly offered and privately placed bonds averaged a record $4.3 billion per month, com­ Liquid assets are currency, demand and time deposits, U.S. Govern­ pared with $2.6 billion per month in 1974. The ment securities, State and local obligations, and open-market paper. heavy volume of corporate offerings was one Current liabilities are short-term bank loans, trade debt, open-market paper, finance company loans, U.S. Government loans, and profit taxes factor that limited the decline in long-term in­ payable. Short-term debt consists of short-term bank loans plus openmarket paper. terest rates; nevertheless, bond yields recently Flow of funds quarterly data for nonfinancial corporations, not sea­ sonally adjusted. Data for 1975-11 are preliminary. have been approximately 100 basis points below their 1974 peaks, and they have remained rela­ much faster pace. Consequently, corporate li­ tively steady despite the continued large volume quidity, as measured by the ratio of liquid assets of issues offered in this market. to current liabilities, fell to a new low in 1974. Although the major share of recent bond The decline was a continuation of the postwar issues continues to be of prime quality, an downtrend that had been temporarily interrupted increasing number of issues rated A and Baa by balance-sheet restructuring in 1971 and were brought to market in the second quarter. 1972. This suggests that there has been some im­ In short, corporate balance sheets were provement in the financing opportunities of weakened substantially by the large amounts of lower-rated corporations. Indeed, since the be­ debt—particularly short-term debt— issued dur­ ginning of the year there have been several ing 1973 and 1974. The unfavorable effects of indications of such improvements in the cor­ these financing patterns on corporate liquidity, porate financial environment. Downgrading of debt-to-equity ratios, and the maturity structure corporate bond ratings and postponements of of corporate capital sharply reduced the finan­ new issues have been much less prevalent than cial flexibility of many corporations and con­ last year, and many firms with improved liquid­ tributed to the numerous downgradings in credit ity positions have had their credit ratings raised ratings that occurred last year. or reinstated. The number and volume of cut­ backs in capital spending plans, particularly by the utilities, have subsided. And regulatory agencies have been allowing more rapid and R E S T R U C T U R IN G IN 1975 greater rate increases; as a result of such in­ As a result of the large cutbacks in capital creases, the earnings position of the utilities expenditures and inventory liquidation in the appears to have strengthened, improving some­ first two quarters of 1975, total corporate de­ what their access to financial markets. mands on credit markets have fallen sharply In addition, the decline in interest rates and from 1974 levels. Indeed, in the first 6 months progress in reducing inflation have contributed the volume of net funds raised in financial to a marked improvement in equity markets. markets by nonfinancial corporations is esti­ During the first half of 1975 stock prices rose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Corporate Finance 471 by as much as 50 to 60 per cent from their 1974 corporations with less than prime ratings must lows. Concurrently, the volume of new equity wait for further improvements in capital markets issues expanded significantly, with utilities in before issuing long-term debt. particular taking advantage of rising share prices And, even though the financial position of to sell stocks and thus reduce their debt-to-eq- many firms has improved, the ratio of shortuity ratios. Although major stock indices are to long-term debt remains relatively high by still more than 20 per cent below their peaks historical standards. Also, while many busi­ in 1973, a moderate increase in stock issues, nesses have increased their holdings of cash and along with continued large offerings of long­ marketable securities, acquisitions of substantial term debt, may help to restructure and amounts of liquid assets probably will not occur strengthen corporate balance sheets through the until corporate profits have recovered from their remainder of 1975. recent declines. On balance, therefore, it ap­ Despite these improvements, however, the pears that corporations have only partially re­ markets continue to reflect the preference of covered the ground lost in 1974 and may find creditors for high-quality obligations. Risk pre­ it necessary to continue restructuring through miums have fallen only slightly, and numerous the remainder of 1975. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 S ta ff E c o n o m ic S tu d ie s The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed­ forth are those of the authors and do not neces­ eral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub­ Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the Bulletin by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes­ back of each Bulletin includes a separate sion and to others are summarized— or they may section entitled “Staff Economic Studies99 that be printed in full— in this section of the Federal enumerates the studies for which copies are Reserve Bulletin. currently available in that form. S T U D Y S U M M A R Y THE PERFORMANCE OF INDIVIDUAL BANK HOLDING COMPANIES A rthur G. Fra as—Formerly on the staff of the Board of Governors; presently Assistant Professor of Economics, U.S. Naval Academy, Annapolis, Maryland. Prepared as a staff paper in June 1974. A cornerstone of public policy toward the bank The method of approach adopted uses single­ holding company movement has been the prop­ equation regression models in an attempt to osition that holding company affiliation leads to explain variations in a selected set of perform­ changes in bank performance that promote the ance measures. In order to correct for dif­ public interest. This expectation has not been ferences in local markets, these models contain borne out, however, by studies that compare the several independent variables to represent local performance of holding company affiliates as a economic conditions. In addition, a set of inde­ group with the performance of independent pendent variables— using the statistical tech­ banks. The absence of any marked change in nique of dummy variables— represents bank performance may reflect substantial, offsetting affiliation with individual bank holding compa­ differences in the operations of individual hold­ nies. From the standpoint of this study, the ing companies that arise because of differences results associated with the latter set of variables in management philosophy. This study exam­ indicate the degree of difference in performance ines the extent of differences in performance of among individual bank holding companies. individual holding companies. These regression models were applied succes­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

473 sively to samples of all banks from the States to reject the hypothesis that all holding-com­ of Ohio and Colorado with $10 million to $75 pany-affiliated banks can be treated as elements million in deposits. of a single group. Many of the performance The findings indicate significant differences measures indicate that operations of banks in the performance of individual holding com­ affiliated with particular holding companies panies. These differences are particularly ap­ differ significantly from those of independent parent in the portfolio choices of the affiliates banks and of banks affiliated with other holding of individual holding companies— for example, companies. As a matter of public policy with in the proportions of total assets held as instal­ respect to specific holding companies, then, ment loans, residential real estate loans, and these results suggest the importance of assessing obligations of State and local governments. As the operating characteristics of each holding a result, it is possible in a number of instances company. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 S ta te m e n ts to C o ngress Statement by Jeffrey M. Bucher, Member, credit is made available to equally creditworthy Board of Governors of the Federal Reserve people on a just and fair basis. The denial of System, before the Subcommittee on Consumer credit based upon a person’s membership in a Affairs of the Committee on Banking, Housing, group without reference to that individual’s and Urban Affairs, U.S. Senate, July 17, 1975. qualifications works to the economic disadvan­ tage of applicants and creditors alike. It is because we believe that fair and equal I appreciate the opportunity to appear before access to credit is a matter of great importance this subcommittee to offer the views of the that the Board recommends that the Congress Board of Governors on proposed legislation delay enactment of this legislation until there dealing with the Equal Credit Opportunity Act has been sufficient opportunity to benefit from and consumer leasing. Three bills are before the experience in implementing the regulations committee that would amend the Equal Credit under the sex and marital status provisions of Opportunity Act— H.R. 6516, S. 483, and S. the Equal Credit Opportunity Act, which goes 1927. Two legislative proposals to regulate into effect in October 1975. In the course of consumer leasing— S. 1900 and S. 1961— are our preparation of this regulation we have de­ also under consideration. I would first like to veloped an increased appreciation of the many address myself to the suggested amendments to complexities involved in implementing the re­ the Equal Credit Opportunity Act. quirements of this type of legislation. Based The three Equal Credit Opportunity bills would upon our experience to date, we feel that the add new classes to the existing categories of sex Equal Credit Opportunity Act should not be and marital status. H.R. 6516 would add extended without a thorough exploration, delin­ the categories of race, color, religion, national eation, and resolution of the basic issues present origin, and age. S. 1927 would amend the Act in regulating these areas. to include not only those categories covered by Our experience in drafting regulations to im­ H.R. 6516 but also discrimination based on a plement the existing law has brought to the person’s political affiliation, receipt of public surface many problems the solutions to which assistance benefits, exercise of rights under the must be tested in practice before we can confi­ Act or other provisions of law, and such other dently apply similar approaches in other areas. classifications as the Board of Governors may Some of the more perplexing questions that have establish by regulation. In contrast, S. 483 not yet been finally resolved include the extent would simply amend the existing law to prohibit to which a creditor should be required to con­ discrimination on the basis of an “arbitrary age sider alimony as ordinary income, the extent to limit.” which a nonworking spouse should benefit from Let me begin by stating, as I did before the the credit history of a joint account, and the House Subcommittee on Consumer Affairs on problem of how to provide the consumer with April 22 of this year, that the Board strongly a “clear and meaningful” statement of the rea­ favors the elimination in credit transactions of sons for denial. In our efforts to reconcile the all discrimination based on factors other than statutory goal of equal credit opportunity with an individual’s creditworthiness. Although there the need to preserve the lender’s ability to is no legal right to receive credit, the Board distinguish accurately the creditworthiness of believes a great deal can be done to assure that different applicants we have proposed solutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 475 whose success will not be known until the gress allow itself more time to continue its study effects of their actual operation can be meas­ of the problems involved in extending the Equal ured. Credit Opportunity Act to the proposed new Similarly, even a preliminary look at the categories in order to achieve a thorough analy­ prohibition against age discrimination, a major sis of the issues. We also believe that before feature of all three bills, discloses particularly enlarging the scope of the Equal Credit Oppor­ complex questions. For example, under the tunity Act, the Congress should obtain the ben­ proposed legislation, to what extent will it be efit of the experience of consumers and creditors permissible to use statistical data in evaluating under the regulation pertaining to sex and mari­ applicants for credit? Can statistical data relat­ tal status that will be published in final form ing to age be used in determining creditworth­ in the next few months. iness in the same way that insurance companies If, after reviewing these considerations, the utilize actuarial tables to evaluate insurance committee nevertheless decides to proceed with risks or should the approach be similar to that the proposed amendments at this time, the in the Equal Employment Opportunity Act1 Board of Governors will make the utmost effort guidelines which direct that “individuals be to carry out its rule-writing and enforcement considered on the basis of individual capacities responsibilities under the broadened Act in the and not on the basis of any characteristics gen­ fairest and most effective way possible. With erally attributed to the group”2 and thereby that in mind, the Board wishes to emphasize forbid the reliance on data that reflect the per­ the fact that the presently proposed 6-monthformance of a particular group? rule-writing period is not adequate given the Each of us at the Board is influenced by the complexity of the issues and the dearth of pre­ realization of how much is at stake in these vious work in these areas of credit regulation. endeavors. Unless they are carried out in the In accordance with our best estimates, we re­ best possible manner, we may not only fail to quest that the effective date of the amendments gain the positive benefits for our citizens that be set at 2 years rather than 6 months after are so earnestly sought but we may also reduce enactment. Our objective is a time frame that the availability of credit and bring discredit upon will permit the Board to discharge its respon­ these and other laudable efforts to dispel bias sibility in a manner that will fully carry out the and prejudice by the reasoned and orderly de­ intent of the Congress and serve the public velopment of our legal system. An attempt to interest. impose these solutions without sufficient Based upon our experience in writing regula­ knowledge of their possible ramifications could tions under the existing Act, and under the Truth have the adverse effect of reducing the avail­ in Lending and Fair Credit Billing Acts, the ability of credit by inflating creditors’ costs and Board is aware that the final version of a regu­ eliminating the smaller lender whose profit lation of this kind should be adopted at least margin cannot sustain such costs. Our best hope 6 months before it becomes effective. The lead for achieving the worthy objectives of this pro­ time is essential to achieve three basic goals: posed legislation will depend upon not only the first, to give the Board time to inform creditors understanding of the Congress of this funda­ of their new duties and responsibilities under mental problem but also on our efforts to study the regulation; second, to give creditors time and understand the problems as thoroughly as to revise their procedures, rewrite their forms, possible, to consult as extensively as we can, and train their people; and third, to allow the and then to draft the regulation as carefully and Board to educate consumers as to their rights objectively as we know how. under the amended Act. For example, a mini­ Accordingly, we would suggest that the Con­ mum lead time of several months is needed simply to print the new application forms in the quantities required. 1 Title VII of the 1964 Civil Rights Act, as amended in 1972. 229 C.F.R. 1604.2 (Equal Employment Opportunity Com­ Thus a period of 2 years only provides 18 mission’s Guidelines). months in actuality for the rule-writing process Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 Federal Reserve Bulletin □ August 1975 itself. We have constructed a timetable3 that garding discrimination on the basis of an appli­ explains in detail what must be done during the cant’s receipt of public assistance benefits. Sur­ 18 months needed for the actual drafting and veys reported by the National Commission on adoption of a regulation of the quality we be­ Consumer Finance suggest that the problem is lieve the Congress wants and the public interest significant.5 We would agree that the receipt of requires. public assistance, be it Aid to Dependent Chil­ I would now like to comment upon specific dren, disability, or social security benefits, provisions of the three bills. With regard to S. should not by itself disqualify one for credit. 483, the only point I would like to raise con­ In all cases the essential determinants of a cerns the use of the word “arbitrary” to modify person’s qualifications for credit are the ability the term “age limit.” The Board has concurred and willingness to repay. Since credit is often with the position expressed by the Congress in extended to cover the most basic purchases, the language of the current law relating to sex including shelter, clothing, and furniture, the and marital status— that it would be unwise to credit-granting process should offer every ap­ place any qualifying language in the statement plicant the opportunity to demonstrate his or her of the Act’s basic prohibition. The addition of individual merits. the term “arbitrary,” while appearing to modify Section 701(a)(5) of the bill would prohibit the class protected by the Act, in fact, gives discrimination on the basis of “exercise of little, if any, guidance to the Board as to what rights under this act or other provisions of law.” is intended. More significant, it may be incon­ We have no difficulty with the first part of that sistent with the extensive body of civil rights category, but the term “or other provisions of law that defines the word “discriminate” and law” would bring within the Act’s prohibition establishes the legal standards of scrutiny to be the exercise of the entire spectrum of other legal used in determining whether conduct is dis­ rights, some of which a creditor might justifi­ criminatory.4 If the Congress wishes to qualify ably consider in determining creditworthiness. the coverage of the amendment in the area of The most obvious case is the exercise of rights age, it is recommended that such qualifications under the bankruptcy law. We believe a dis­ be spelled out with particularity. charge in bankruptcy to be a valid consideration Let me turn now to a second bill regarding in a determination of creditworthiness and one Equal Credit Opportunity— S. 1927. Section that should not be prohibited. We suggest that 701(a) of this bill would establish three specific this category of prohibition be revised to include categories of prohibited discrimination that are only “exercise of rights under this Act.” not included in H.R. 6516. These are the cate­ Sections 701(b) of S. 1927 and 701(d) of gories of political affiliation, receipt of public H.R. 6516 provide, in effect, that the consid­ assistance benefits, and exercise of rights under eration of an applicant’s age when used for the the Act or other provision of law. With regard purpose of applying criteria favoring applicants to the inclusion of “political affiliation” as a in a particular age category shall not constitute category of prohibited discrimination, we sug­ discrimination. These provisions require some gest that, because we are not aware of any revision to clarify their scope and intent. Ac­ evidence of such discrimination, this would cording to the House committee report on H.R. appear to be an area in which further inquiry 6516 and the comments accompanying the in­ on the committee’s part may be advisable. troduction of S. 1927, the provisions were in­ In contrast, evidence has been presented re­ tended to permit the use of age information when carrying out affirmative action programs designed to benefit a particular age category. 3This memorandum, which accompanied the original state­ It would be preferable if these provisions dement, is available upon request to Publications Services, Divi­ sion of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. 4See for example, Griggs v. Duke Power Co., 401 U.S. 5“Consumer Credit in the United States,” Report of the 424, 429-30 (1971); Albemarle Paper Co. v. Moody, 95 S. National Commission on Consumer Finance, pp. 155-60 (De­ Ct. 2362 (1975). cember 1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress All scribed with specificity which age categories are Board believes that consumer leasing is an ap­ deemed to be in need of such protection, and propriate method of utilizing and, in some then explicitly authorized the Board to imple­ cases, of purchasing consumer durables. Con­ ment these objectives by regulation. As the sumer leasing has experienced rapid growth provision now reads, it creates a loophole by within the last decade. This growing popularity making it possible for a creditor who discrim­ suggests that the public is increasingly coming inated against one age category to raise as a to view leasing as a viable alternative to credit defense the argument that its policy was de­ purchases for some products. signed to favor another age category. Available statistics on the growth of con­ Section 701(d) of S. 1927 would require sumer leasing indicate that the so-called “bigcreditors to furnish rejected applicants with a ticket durables,” such as automobiles, color notice of the reasons for denial or termination television sets, and homefurnishings are the of credit. As the committee may be aware, the most common goods leased by consumers. Au­ proposed regulation issued by the Board under tomobiles presently constitute the most popular the existing Act contains a similar provision that leased goods, and this aspect of consumer leas­ would require notice of reasons for denial only ing will no doubt absorb much of the subcom­ when requested by an applicant. The Board is mittee’s attention during its deliberations on this still considering this entire question. Its present legislation. feeling is that requiring the notice to be given Automobile leasing has experienced rapid only where requested would accomplish the growth over the past decade. According to sta­ purposes of the requirement without putting the tistics from the National Automobile Dealers creditor to the unnecessary expense of providing Association, in 1965 more than 1.5 million, a written statement in all instances of denial. some 14 per cent of the total number of auto­ The Board believes that the existing law pro­ mobiles produced, were leased, and one-fifth vides the necessary authority for a provision of of this total was leased to individuals. By 1970 this nature; however, if the Congress desires to the percentage of automobile production that include the provision in the amendments to the was leased had grown to 24 per cent (2.6 Act, the Board would welcome this explicit million), more than a quarter of which repre­ statement of its authority and would suggest that sented leases to individuals. As of 1974, 2.8 the Congress consider the modified version million, about 26 per cent of the total number contained in the proposed regulation. of cars made, were leased, and 36 per cent of I would now like to address the two legisla­ this total was leased to individuals. Thus, over tive proposals, S. 1900 and S. 1961 dealing with almost a decade, the percentage of total auto­ consumer leasing, that the subcommittee is mobile production leased to individuals has tri­ considering. The Board is particularly pleased pled in size—from less than 3 per cent in 1965 to see legislative action beginning in this area to 9.2 per cent in 1974. Projections from auto because the need for consumer leasing disclo­ makers in Detroit, moreover, estimate that 80 sures has been of some concern to us over the per cent of the growth in leasing through 1980 last 2 years. In its Annual Report to Congress will be seen in leases to individuals. on Truth in Lending for 1973, the Board pointed The Board’s concern with consumer leasing out several disclosure problems in the area of is that presently, except for provisions made in consumer leasing and suggested that the Con­ a few State statutes, there is no requirement that gress might wish to examine this rapidly ex­ a standardized aggregate cost disclosure be panding field. The additional step of recom­ given the consumer when he leases goods under mending legislative provisions was taken by the a long-term contract. The major purpose of the Board in its Truth in Lending Report for 1974, Truth in Lending Act has been to facilitate and I was gratified to note that many of the meaningful consumer shopping of the credit provisions of the Board’s proposal have been market by providing standardized disclosures of incorporated into the two bills. credit costs. Without comparable disclosures on I would like to state at the outset that the consumer leasing, it is difficult, if not impossi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 Federal Reserve Bulletin □ August 1975 ble, for consumers to shop in the expanding such as those in which there is no option to leasing market. Our hope is that the passage purchase. In addition, we believe that the num­ of this type of legislation will help consumers ber of leases with nominal purchase options is not only to compare leasing alternatives but also quite small. to compare lease transactions with conventional The focal point of the Board’s concern is thus credit sales. those long-term leases of personal property to The need for comparability in disclosure be­ be used for personal, family, or household pur­ tween lease and credit transactions is particu­ poses, which typically have a maturity ap­ larly important because many consumer leasing proaching that of a credit-sale agreement, and arrangements now prevalent in the market are potentially bind the lessee to the payment of essentially the equivalent of credit sales. The an aggregate sum substantially equivalent to the terminology of the trade, for example, refers value of the goods leased. This does not include to certain lease agreements as “financing the short-term convenience leasing such as leases.” The fact that many of these leases are “rent-a-car” arrangements. essentially equivalent to credit sales is not coin­ We feel that standardized disclosures, com­ cidental. For example, both the Comptroller of parable to those set forth under Truth in Lend­ the Currency as to national banks and the ing, should be required for lease advertisements Board in its rules governing bank holding com­ as well as for consumer lease transactions. pany activities require that leases entered into However, we do not believe that rate disclo­ by these institutions be the functional equivalent sures, analagous to the annual percentage rate of a credit transaction and have thus limited the under the Truth in Lending Act, are practical. asset risk that banks and bank-related lessors The development of lease rate disclosures is may take in engaging in leasing operations. impractical, we feel, because of the difficulty These rules, designed to protect the safety and of determining what common costs should be soundness of banks in which the public deposits isolated in the computation of such rates. its funds, have the effect of placing the risk of I would now like to comment on two sections any unforeseen deterioration or depreciation of of S. 1961 and one section of S. 1900 that we the product leased on the lessee. Thus, legisla­ regard as highly important. The first is Section tion to protect the consumer by requiring proper 183, a sectional reference common to both bills, disclosure of the consumer lessee’s risks be­ which sets a limitation on a consumer lessee’s comes all the more important. Otherwise, the liability. This section of the two bills addresses lessee may unknowingly undertake nearly all the the liability that the lease may impose on a burdens of ownership, without the benefit of title consumer lessee at the end of the lease term. or adequate cost disclosures. It is not uncommon for consumer leases to It is presently not possible as a practical provide that upon the expiration of the lease matter to require adequate cost disclosures on the product will have a stipulated depreciated leases under the Truth in Lending Act. The value and will either be purchased by the lessee Truth in Lending Act brings certain leases with­ or sold to an independent party. Under the terms in its disclosure requirements through the defini­ of such an agreement, if the product is sold and tion of credit sale contained in Section 103(g). brings less than the depreciated value stipulated However, these requirements apply only with in the contract, the lessee is liable for the respect to those leases that contain provisions difference; if it brings more, the lessee is enti­ permitting the lessee to become the owner of tled to the surplus. the goods leased “for no other or a nominal For example, a typical 2-year auto lease on consideration.” The Board might conceivably a $5,400 car might call for 24 $100 instalment expand this provision by adopting a broad defi­ payments and set an end-term depreciated value nition of what constitutes a nominal consid­ of $3,000 on the car. Under such an agreement, eration. However, this would still not accom­ the lessee may have no understanding of how plish the purpose of assuring that adequate cost much the lease may cost unless he can accu­ disclosures are given in all consumer leases, rately predict the secondhand market value of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 479 the product. For example, in this case the de­ between lessee and lessor and with the possi­ preciated value of the car might be $2,500, bility that such a larger amount might be offered which under the lease contract would leave the in a pre-printed form contract on a “take-it or lessee liable for an additional $500 “balloon” leave-it” basis. They believe, moreover, that payment. Thus, if the contract sets an unrealis- some limitation tied to instalment payments is tically high depreciated value on the leased highly desirable because of its ability to assure goods, the contingent liability of the lessee will that the leased product will be fairly priced to increase accordingly, and the lessor can offer cover anticipated depreciation. deceptively low monthly rental payments to an The second provision on which I would like unwary public. to comment is Section 6 of S. 1961. This section Section 183 of S. 1961 sets the lessee’s places an effective date for this legislation as contingent liability as the lesser of twice the the first day of the second full calendar month average monthly rental payment or 10 per cent after the date of enactment. As we have men­ of the total rental payments under the lease. The tioned before, we believe the time that the comparable provision in S. 1900 states that the Congress grants to an agency to implement a lessee’s contingent liability would be limited to given statute has a direct bearing on the quality three times the monthly rental payment or a and effectiveness of the agency’s regulations. larger amount agreed upon by the lessor and We believe the 2-month period accorded under lessee. Both bills provide an exception to the S. 1961 is far too short to develop well-consid­ limit placed on lessee liability in the case of ered implementing regulations that are fair to damage beyond normal wear and tear to the the lessee and lessor alike. Time for consultation leased product or in the case of lessee delin­ with both business and consumer groups is quency. needed. Time is also needed to comply with The provisions of both bills are designed to the Administrative Procedure Act, which re­ assure that the lessee is notified in advance of quires publication of proposed rules for com­ the extent of his maximum contract liability ment. Responding comments must be carefully under the lease. By incorporating a monthly analyzed, and an effort must be made to educate payment factor or a percentage of total payments consumers on the legislation. Finally, if the into the computation of this maximum end-term regulations are to be properly complied with, figure, both bills seek to assure that the lessor industry must have some time to study them will price the rental instalments of the leased and to change business procedures. Therefore, goods sufficiently high to cover expected depre­ the Board would respectfully urge that a mini­ ciation and thus avoid leaving the consumer mum of 12 months be provided, as Section 5 lessee with an unduly large balloon payment at of S. 1900 would provide, before this Act is the end of the lease term. to become effective. The Board supports the purpose of both of In closing I would like to commend this these protective features. However, as the Board committee for the action taken in the area of stated in its 1974 Annual Report, it is not consumer leasing. This new and expanding al­ committed to any specific liability formula. The ternative to credit purchases, we feel, merits 3-month formula of S. 1900 or the 10 per cent careful attention, and we are hopeful that the alternative in S. 1961 both may be quite ade­ Congress will provide a statutory basis to assure quate. The Board would hope, however, that that the consuming public will have the neces­ whatever formula may be chosen will reflect sary information to make intelligent shopping industry experience in accurately setting depre­ decisions in lease transactions. With regard to ciated values. the Equal Credit Act amendments, the Board Some, but not all, members of the Board have supports the purposes of the legislation but concern over the provision in S. 1900, which believes that further inquiry and analysis are allows for the substitution of a larger amount needed to devise the most suitable methods of agreed to by the lessee and lessor. Their concern serving these purposes. We believe the prudent is with the likely disparity in bargaining power course would be to draw upon the experience Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

480 Federal Reserve Bulletin □ August 1975 that will be gained after the existing law cover­ of the coverage of the Act until such experience ing sex and marital status has been in effect is available. I will be pleased to respond to any for a reasonable time, and to defer extensions of your questions. □ Statement by Henry C. Wallich, Member, have been excessively wide. The fact that many Board of Governors of the Federal Reserve effective exchange rates (a term I will examine System, before the Subcommittee on Interna­ more closely in a moment) have returned to tional Trade, Investment and Monetary Policy about the levels at which they stood in March of the Committee on Banking, Currency, and 1973, or shortly thereafter, seems to suggest that Housing, U.S. House of Representatives, and the interim fluctuations were unnecessary. Some the Subcommittee on International Economics observers go further and argue that temporary of the Joint Economic Committee, on “Problems declines in exchange rates that have occurred of International Monetary Reform and Ex- have been inflationary in many countries change-Rate ManagementJuly 21, 1975. through a ratchet effect on cost-price structures. Moreover, monetary policies of non-reserve - I am pleased to appear before these committees currency countries have not been as independent to discuss the five questions posed by Chairman under floating rates as some had expected. Rees’ letter of June 26. In order to be as Monetary policies that generated and were con­ responsive as possible to the committees’ needs, strained by unwanted flows of financial capital I have organized my remarks today into five among countries under fixed exchange rates sections to correspond with the concerns raised seem to have generated and to have been con­ by your chairman. strained by unwanted changes in exchange rates under a regime of greater flexibility in exchange rates. EV A LU A T IO N O F E X PE R IE N C E Another aspect of the world monetary system W ITH FLE X IB L E E X C H A N G E R A TES that has attracted attention of late is the fact After floating first became general in March that it is not a system of freely floating exchange 1973, early evaluations of floating exchange rates. It is a mixed system: some countries peg rates were marked by considerable relief and their currencies to the currency of a major satisfaction that international trade continued to trading partner; some blocs, or groups, of expand and that exchange markets functioned countries maintain stable rates among them­ well. Both the business community and govern­ selves while floating more freely with respect ments seemed to adapt quickly to the new sys­ to the rest of the world; some countries actively tem. Governments did not then, and on the manage their float to a greater or lesser extent whole have not since, resorted to administrative by intervention in their exchange markets; and controls or competitive depreciation to improve a very few countries, among them the United their current account positions at the expense States, float— to the extent that the interventions of others. The absence of controls, together with of others will allow them— with a relatively increasing familiarity with techniques available small amount of intervention. for minimizing risks associated with exchange- Recent criticisms of floating exchange rates rate changes, has considerably reduced initial contribute to our understanding of the current skepticism toward floating rates expressed by world monetary system and deserve to be some members of the business community. weighed carefully. On the other hand, it would Recently, however, increasing criticism of be a mistake to allow these criticisms to over­ floating rates has been heard. The most preva­ shadow the benefits that greater exchange-rate lent criticism is that exchange-rate fluctuations flexibility has yielded. Exchange-rate fluctua­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 481 tions have been large, to be sure, but in good With this in mind, analysts have constructed part these fluctuations have reflected the dis­ weighted averages of countries’ exchange rates; turbed nature of our times. Since March 1973 these calculations are sometimes labeled the we have experienced high and unpredictable “effective exchange rate” of a particular cur­ rates of inflation, a worldwide recession, and rency. I have provided a brief description of the end of the boom in commodity prices. alternative methods of calculating effective ex­ Massive increases in oil prices have produced change rates in the appendix to this testimony.1 large shifts in trade flows, and the problems For the U.S. dollar, in contrast to some other connected with the recycling of investments of currencies, alternative measures of an effective the Organization of Petroleum Exporting Coun­ rate yield rather similar results. tries (OPEC) to countries in need of financing have created further uncertainties. Finally, con­ TO W H A T E X TE N T SH O U LD siderable uncertainty has prevailed concerning C E N T R A L B A N K S IN TE R V E N E the preferences of OPEC members for various IN E X C H A N G E M A R K E TS? financial assets. Assessments that could be made by market participants of the probable impacts Floating has been tempered by official interven­ of these factors on individual countries have tion in exchange markets. The old system of changed rapidly. These changing assessments fixed rates required intervention to be carried have in turn generated large changes in ex­ to the point of nearly complete stability. Under change rates. But such shocks to the world floating, intervention has usually been carried economy would have required unusually large less far. But some countries— including Ger­ and frequent exchange-rate changes under any many, Switzerland, France, Italy, Japan, and monetary system and would probably have re­ the United Kingdom—have intervened on a sulted in some exchange-market crises under a substantial scale in attempts to modify the ex­ regime of fixed exchange rates. As a practical change value of their currencies. The first two matter there has been no alternative to greater countries have intervened predominantly to flexibility in exchange rates, and for some moderate the appreciation of their currencies, countries there may be none for the foreseeable while intervention by the others has been future. directed predominantly, but not exclusively, The problems of the present system have toward supporting their currencies. been exaggerated by a tendency of public at­ Intervention initiated by foreign governments tention to concentrate on those foreign curren­ to support their currencies has been financed, cies showing the widest fluctuations vis-a-vis the as in the past, partly by the accumulation or U.S. dollar. This in part reflects the fact that reduction of reserves. But in some cases recent in some cases an upward trend in a currency intervention has been financed by official bor­ has tended to attract increasing activity into the rowing of dollars in private credit markets, market for that currency as speculative interest particularly the Euro-dollar market. In addition, in it has mounted. In particular, wide swings some “intervention” has not directly involved in the German mark and in the Swiss franc governments at all but has taken the form of against the dollar have dominated the news from officially directed borrowing of foreign curren­ the exchange markets. But all foreign currencies cies by state-controlled firms. These officially do not move up and down against the dollar directed transactions have the same impact on at the same time or at the same rate. And it exchange rates as more traditional forms of is misleading to describe the movement in the exchange-market intervention. To give just one dollar by concentrating on a particular foreign indication of magnitudes, in the first half of currency that is currently the center of market 1974 alone exchange-market intervention of all attention. The dollar has risen since March 1973 with respect to several major foreign currencies Available upon request from Publications Services, Divi­ including sterling, the Canadian dollar, lira, and sion of Administrative Services, Board of Governors of the the Japanese yen. Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 Federal Reserve Bulletin □ August 1975 these types together amounted to nearly $20 of U.S. reserve assets, the gross amount of billion. which currently stands at about $16 billion. The The great bulk of intervention by foreign swap facilities utilized by the Federal Reserve countries occurs in dollars. While the intent and to finance exchange-market intervention are de­ principal effect have been with respect to the signed to be short-term credits and not substi­ currency of the intervening country, a signifi­ tutes for reserve assets. Finally, the United cant effect has been exerted thereby upon the States at times faces a significant technical dif­ dollar. Sales of dollars in support of sterling, ficulty because, in order to intervene on any but the French franc, and the lira tend to raise these a modest scale, it would have to intervene in currencies relative to the dollar. At the same many foreign currencies. Since we are larger time, the action tends to depress the dollar with than other countries, U.S. intervention in just respect to other currencies. Hence, while some one foreign currency could substantially distort dollar intervention has been supportive of the the exchange rates between that one currency dollar, on balance intervention by central banks and all other foreign currencies. financed with reserves or with borrowed dollars Because of the important role that foreign has in some degree depressed the dollar. official intervention plays in current exchange- In contrast to dollar intervention initiated by rate arrangements, guidelines for intervention foreign governments, intervention initiated by within the existing mixed system of exchange the United States since March 1973 has been rate arrangements have been developed by the quite modest and limited in its purpose to main­ Committee of Twenty. As adopted in June 1974 taining orderly market conditions by smoothing by Executive Directors of the International temporary and disruptive fluctuations in ex­ Monetary Fund (IMF), these guidelines are the change markets. first step in outlining the rights and respon­ Disorder in exchange markets may take sev­ sibilities of countries within the evolving sys­ eral forms. One such form is a widening spread tem. The guidelines encourage intervention de­ between bid and offer rates. In times of extreme signed to maintain orderly market conditions by disturbance, bids and offers may disappear alto­ mitigating day-to-day and week-to-week exgether. Rate movements that are relatively dis­ change-rate changes. A member may also inter­ continuous represent another form of disorder. vene to moderate movements in exchange rates Some participants in exchange markets engage over longer time periods (month to month or in frequent in-and-out trading based on very quarter to quarter) where factors recognized to short-term objectives; fluctuations generated by be temporary are at work. The guidelines also such trading may temporarily swamp more fun­ allow countries to establish target zones for damental factors. Various other circumstances exchange rates or for the development of their may temporarily block a response to fundamen­ reserves in consultation with the Fund— al­ tals. though, to date, no country has attempted to When appraising exchange-market interven­ specify zones for exchange rates or for changes tion by the United States, it is important to in their reserve positions. These guidelines remember the difficulties and constraints that allow greater scope for intervention than we are necessarily circumscribe these operations. The willing to utilize. total volume of financial assets denominated in The guidelines also recognize that members U.S. dollars may be on the order of $5 trillion, who engage in exchange-market intervention including substantial amounts held by foreigners should bear in mind the interests of the issuing in the United States and in the Euro-dollar countries in whose currencies they intervene. market, and a relatively large proportion of Since most intervention involves dollars, the these dollar assets is internationally mobile. United States has a legitimate concern in this Hence potential shifts between the dollar and regard. foreign currencies are very large. The potential Before leaving the subject of intervention in scale of U.S. intervention, moreover, would be exchange markets, I would like to point out that bound to remain modest, given the small size monetary policies, and in particular central bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 483 operations in domestic financial markets, have economic relations. For a large country with a important implications for exchange rates. This foreign trade sector that is small relative to its is especially true for a currency such as the domestic economy, a proper ordering of priori­ dollar because U.S. money markets are free of ties points in the opposite direction. direct controls and because the dollar is widely Even a commitment to maintenance of ex­ held by individuals and firms that are sensitive change rates within narrow margins for a tem­ to interest rates on alternative foreign currency porary period would have to be carefully safe­ assets. However, most countries— and, again, guarded by an agreed adjustment mechanism. particularly the United States—find it in their In such a mechanism, surplus and deficit coun­ interest to give priority to domestic objectives tries would have to share the burden of adjust­ in determining their monetary policies. Hence ment, and it would also have to allow for monetary policies may have unwanted reper­ changes in rates, perhaps along the lines of the cussions in exchange markets— an easing of outline of reform negotiated by the Committee monetary policy, for instance, producing a of Twenty of the IMF. weakening in the exchange rate, possibly with These problems associated with a system of inflationary consequences. Within limits, ex- convertible currencies based on fixed rates make change-market intervention may be able to it clear that an option to float must be available cushion such effects. as part of the Fund’s exchange-rate regime. A system under which a country could be denied the right to float, or where some time limit for SH O U LD A U T H O R IZA TIO N returning to fixed parities was specified, or BY TH E IM F B E R E Q U IR E D where floating countries could be penalized in FO R A C O U N TR Y TO FLO A T? some form, would not meet the foreseeable The constraints thj^t circumscribe intervention needs of the United States. operations described in the foregoing discussion A floating rate regime, of course, is not a apply a fortiori to the extreme case of interven­ license for uncooperative foreign exchange tion— that is, attempted maintenance of a fixed practices. A country with a floating currency can rate. Such a fixed rate would be implied if the be a good international citizen and has an obli­ IMF had the power to deny to a member the gation to act responsibly and fulfill its interna­ right to float its currency, because the alternative tional commitments. A commitment to cooper­ to floating is a fixed rate maintained by inter­ ative behavior rather than to a particular form vention, or controls, or tight policy coordina­ of exchange-rate regime should be at the core tion, or some combination of these. The right of a country’s obligations to the IMF. of a country to float without prior authorization by the IMF was one of the principal matters TH E R O LE O F G O LD in dispute at the recent meeting of the IMF AS A R E SER V E A SSET A N D Interim Committee in Paris. SA LES O F G O LD B Y TH E IM F Exchange-rate stability is preferable to insta­ bility. But for reasons already given, it would As I have indicated, the appropriateness of be difficult for the United States to maintain particular exchange-rate arrangements will exchange rates within narrow margins by inter­ depend in theory and in practice on the nature vention alone and undesirable to attempt to do of other aspects of the international monetary so. system, such as the place of reserve assets in Nor does close policy coordination offer a that system. Similarly, the issue of the possible viable alternative as a means of maintaining use of the gold now held by the IMF must be exchange rates within narrow margins, at least examined in the context of the broader issue for a large country like the United States. of the relationship between gold and other re­ Smaller countries may find it preferable to limit serve assets in the international monetary sys­ their freedom of domestic policy in order to tem. obtain the benefits of more stable international As you know, the United States wants to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 Federal Reserve Bulletin □ August 1975 ensure that the role of gold in the international once the market adjusted to the prospect of monetary system is gradually reduced. Interna­ increased supplies from this source, the actual tional rules of behavior should be structured to sales should not have a particularly pronounced help achieve this objective. These might in­ effect on the market price. Moreover, such sales clude: by the IMF are likely to be small and gradual. 1. A prohibition on any arrangements that The danger of manipulation of the gold price would have the effect of fixing a price, or a as a consequence of IMF sales of gold is further price range, for gold. reduced by more general considerations. An 2. A global limitation on the holdings of gold attempt by any country or group of countries by governments and the IMF taken together; no to fix an official price of gold would encounter government would be allowed to purchase gold severe difficulties owing to the existence of a from the private market if such a purchase free market for gold. An official price could not would push total holdings above the global long deviate from the free price because mone­ limit. tary authorities would not wish to sell at prices 3. Prohibition of gold transactions among below the free price and would not wish to buy monetary authorities, except in special circum­ above it. Maintaining equality between a fixed stances such as an emergency need for a country official price and the free price would require to mobilize its gold holdings; gold would not at least one monetary authority to stand ready be used, directly or indirectly, as a means of to buy or sell unlimited quantities of gold. Such settling payments imbalances except in such an arrangement was attempted under the sospecial circumstances. called Gold Pool arrangements in the 1960’s and 4. Continuation of the right of individual proved unworkable. countries to sell gold to the private market. The establishment of rules of conduct for Rules governing the use of gold in transac­ individual governments and for the IMF along tions with and directly by the IMF are also the lines I have indicated is consistent with the needed, such as that gold should no longer be objective of gradually reducing the role of gold accepted by the Fund either for quota payments in the international monetary system. Yet a or for any other purpose and that the Fund gradual approach to this problem is clearly es­ should be granted the same authority that each sential because gold is an important asset in the member government now has to sell gold from international reserves of a few countries. It is its present stock in the private market. The unrealistic to think that this asset can be elimi­ proceeds from such gold sales by the IMF nated from the international monetary system should be used for internationally agreed upon overnight. Instead, its role should be gradually, purposes. Mobilization of a portion of the IMF’s effectively, and equitably reduced. gold through sales in the private market could add to the resources available to assist those T H E R O LE O F T H E D O L LA R countries most seriously affected by the rise in AS A R E SER V E C U R R E N C Y oil prices; such sales would also help to ensure A N D TH E “ D O L LA R O V E R H A N G ” that the stock of monetary gold is gradually reduced. I turn now to the question of the role of reserve Sales of the IMF’s gold on the private market currencies, and particularly the role of the U.S. should not be designed to fix the market price dollar, in the international monetary system. In of gold. Such sales, together with an effective analyzing this subject, and particularly in con­ global limit on the stock of officially held gold, sidering the so-called dollar overhang, it is would make it more difficult for individual gov­ necessary to keep in mind the multiple roles of ernments, if they were so inclined, to fix the the dollar in the international monetary system: market price of gold. The announcement of a the dollar is both the world’s most widely used program of sales of IMF gold on the private intervention currency and its principal reserve market could depress the price of gold if the currency; the dollar is used by firms and indi­ announcement took the public by surprise. But viduals in many countries both to denominate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 485 and to execute their transactions; and, finally, order to intervene in the exchange markets in­ dollar-denominated assets and liabilities are stead of reducing their actual holdings of dol­ both widely held and issued by firms and indi­ lars. This is indicative of a desire to preserve viduals around the world. existing levels of reserves. Traditionally, the term dollar overhang has Fourth, some countries that have very large been applied to the holdings of dollars by dollar accumulations received these in part foreign monetary authorities that are thought to through an inflow of liquid capital. These funds be in excess of their desired holdings. Leaving could depart some day and therefore may make aside the accumulations of dollar-denominated desirable the maintenance of somewhat larger assets by the oil-exporting countries, which are reserves. more properly viewed as investments and not It tends to be misleading, therefore, in the as reserves, the bulk of the dollar balances now present environment to view official dollar held by foreign monetary authorities was accu­ holdings as an overhang. The possibility exists, mulated before the widespread adoption of of course, that countries now holding dollars floating exchange rates in March 1973. In de­ willingly may change their minds. In any event, fense of their exchange parities, several coun­ even to the extent that observers do speak of tries accumulated massive amounts of dollar an overhang, the United States cannot neces­ reserves in 1970-71 and in early 1973. There sarily be held responsible for it. is no way of knowing whether or not all of these The concept of the so-called dollar overhang balances are now “willingly” held, but on the has sometimes been extended to include private basis of the following factors there is reason holdings of dollar-denominated assets, particu­ to believe that for the most part they are. larly those taking the form of Euro-currency First, since March 1973, under a regime of claims. In my view, such an extension of the floating exchange rates, the accumulation of concept of the dollar overhang lacks economic dollars by foreign authorities is no longer an meaning. At any moment in time these private obligation but rather an option. Some countries claims are willingly held. For the most part, may on occasion intervene to hold down their they represent the liquid assets of enterprises exchange rate and so accumulate dollars and and investors that are required for the normal expand their money supply rather than see their conduct of their operations. currencies appreciate. Even if one were to re­ It is true, of course, that the private demand gard these dollars as “unwanted” although they for dollar-denominated assets, as against assets were acquired by choice, the inflows may be in other currencies, is subject to change. If quite unrelated to the U.S. balance of payments. countries desired to offset the pressures on ex­ Intervention may be engaged in by the European change rates that result from such shifts in asset Economic Community (EEC) members, for ex­ demands, they would have to buy or sell dollars ample, for the purposes of keeping “snake” in the exchange markets. Official purchases of currencies within their agreed-upon margins. dollars under such circumstances could con­ Alternatively, a country may be faced with the ceivably be interpreted as additions to the po­ choice of intervening in dollars or letting its tential dollar overhang in the more traditional exchange rate appreciate or depreciate as a result sense of the term. In the present environment, of the attempted movement of OPEC funds. however, situations in which market pressures Second, the recent uncertainties and balance lead countries to sell dollars are as likely to of payments difficulties associated with the rise occur as situations in which countries are led in petroleum prices have put a premium on the to purchase dollars. Countries are not obliged holding of reserves. This development to do either. strengthens the presumption that current official The use of the dollar as a reserve currency, holdings of dollars are willingly held. which is the corollary of the concern about an Third, as indicated earlier, countries have overhang, has associated costs and benefits from frequently borrowed dollars on the international the U.S. perspective. The main advantage for capital markets and have used these dollars in the United States has been the greater flexibility Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 Federal Reserve Bulletin □ August 1975 of balance of payments financing that this (SDR’s) has been suggested. A consolidation country has experienced because it could issue of dollar reserves may well be involved in the liabilities in settlement of a deficit. This pre­ eventual establishment of the SDR at the center sumed advantage, of course, is greatly reduced of the international monetary system. But such under a regime of floating exchange rates. On proposals raise questions regarding terms— in­ the other hand, the use of the dollar as a reserve terest rates, exchange guarantees, amortization currency has diminished our freedom to pursue provisions— that were discussed during the an active exchange-rate policy. As I have noted Committee of Twenty negotiations. The an­ above, foreign intervention decisions have a swers to these questions are, of course, crucial strong influence on the exchange value of the to the interests of the United States. dollar, sometimes in ways detrimental to U.S. I would not want to prejudge the issue of objectives. consolidation. It may well be that as the inter­ I believe that on balance the use of the dollar national monetary system evolves, the case may as a reserve currency has made an important gain in persuasiveness. We are fortunate to have contribution to the smooth functioning of the been able to observe the operation of the inter­ world economy during its recent, severe diffi­ national monetary system in the past 2 years culties. For the longer term, however, the role without being forced by events into hasty ar­ to be played by the dollar and other reserve rangements that might not have stood the test currencies in the international monetary system of time. The task for the future is to analyze is an important, open question. A consolidation thoroughly and build on the experience we have of dollar reserves into Special Drawing Rights accumulated. □ Statement by Robert C. Holland, Member, tential problem bank cases. This action has had Board of Governors of the Federal Reserve first priority among our broad sweep of studies System, before the Subcommittee on Financial addressing key problem areas in banking super­ Institutions of the Committee on Banking, vision and regulation. It is humanly impossi­ Housing, and Urban Affairs, U.S. Senate, July ble— and even undesirable— for supervisors to 22, 1975. prevent all bank problems; but it is practical to aspire, as we do, to recognizing problems early and moving promptly to try to remedy I am pleased to appear before this subcommit­ them. tee, on behalf of the Board of Governors of the There remains, however, a gap in the range Federal Reserve System, to discuss the Board’s of feasible remedial actions that could be un­ reasons for recommending the enactment of dertaken if preventive measures should some­ legislation embodied in S. 890. how not succeed in forestalling a bank failure. The financial experiences of the last 2 years In that eventuality, the best solution of the have raised many significant issues with regard problem in most cases is for the troubled bank to the regulation and supervision of the Nation’s to be taken over by another bank. Bank mergers, banking institutions. where permitted by State branching laws, can One very important area that we at the Federal sometimes serve this purpose effectively. The Reserve are giving increased attention is the alternative of bank holding company acquisition development of more expeditious means of of a failing bank, however, even where permit­ dealing with problem banks. The Federal Re­ ted by State laws, is substantially inhibited by serve System is strengthening its program cov­ two Federal statutory constraints. One enforces ering banks under its jurisdiction to place in­ certain time delays in the approval and consum­ creased emphasis on the identification, surveil­ mation of all bank holding company acquisi­ lance, and timely resolution of current and po­ tions. The second effectively prevents any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 487 holding company acquisition of banks across giving such authorities only an informal con­ State lines. sulting role vis-a-vis the Board’s final decision In our view, either or both of those limitations in the case. can interfere with actions needed to protect the The Board in Section 1(1) of S. 890 has public interest in some cases. Accordingly, the recommended, first, that the regular 30-day no­ Board has placed two separate statutory recom­ tice period be shortened to 10 days if the Board mendations before the Congress, both of which advises the supervisory authority that an emer­ are now embodied in S. 890. gency exists requiring expeditious action. Sec­ The first recommendation essentially involves ondly, Section 1(1) as proposed would give the procedural amendments to the Bank Holding Board the authority to waive notice and hearing Company Act that are designed to permit the requirements entirely if the Board finds that it immediate or expeditious consummation of a must act immediately on an application to pre­ transaction under the Bank Holding Company vent the probable failure of a bank or bank Act in certain problem bank and bank holding holding company involved in the proposed company situations. The amendments are in­ transaction. Both of these suggested amend­ tended to parallel existing provisions in the ments parallel provisions subsequently enacted Bank Merger Act. The second recommendation in the Bank Merger Act— provisions that have would amend the Bank Holding Company Act worked well in the nearly 50 instances in which to grant the Board authority to approve an they have been used over the past 10 years. acquisition of a bank across State lines by a In the Board’s judgment, the present require­ bank holding company when the Board deter­ ment for 30-day notice to the relevant bank mines that a large bank or bank holding com­ supervisor might work against the public interest pany controlling a large bank is in severe finan­ in the context of a problem bank holding com­ cial difficulty and the public interest would best pany situation where immediate or expeditious be served if the bank involved was acquired by action is called for. From a practical standpoint, an out-of-State holding company. I will discuss the primary supervisory authority in such a each of these recommendations in turn, referring situation would be actively involved in the to the current law, the main reason therefor, process of screening potential acquirers and the key arguments for changing the law at this would also be desirous of having an acquisition time, and the Board’s reasons for recommend­ quickly consummated. Similarly, the protracted ing the specific amendments proposed in S. 890. hearing requirements in the case of recom­ Certain time schedules for the provision of mended disapprovals by the supervisory author­ notice and hearing1 were enacted as part of the ity are ill-suited to a failing bank or bank hold­ original Bank Holding Company Act of 1956, ing company situation where the public interest as a compromise between giving bank charter­ demands that decisions be made quickly on the ing authorities an absolute right to deny a hold­ basis of available evidence. ing company application to acquire a bank and There is an additional statutory delay to be dealt with. Under existing law, the Board must immediately notify the Attorney General of any 1 Under existing law, the Board, before approving an approval of a proposed bank acquisition, application for the acquisition of voting shares or assets of a bank under Section 3 of the Bank Holding Company merger, or consolidation transaction under Sec­ Act must: (1) give notice to the Comptroller of the tion 3 of the Bank Holding Company Act, and Currency if the applicant or bank involved is a national such transaction may not be consummated be­ or district bank or to the appropriate State supervisory authority if the applicant or bank involved is a State fore the 30th calendar day after the date of bank; (2) allow 30 days within which the views and approval by the Board. recommendations of the Comptroller of the Currency This requirement was added to the Bank or the State supervisory authority, as the case may be, may be submitted; and (3) if the supervisory authority Holding Company Act in 1966 in order to so notified files a written disapproval of the application conform with the standard consummation pro­ within the 30-day period, provide a hearing on the cedures being established in the Bank Merger application and base its decision on the record of that hearing. Act. The purpose of the provision was to elimi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 Federal Reserve Bulletin □ August 1975 nate conflicts between the Board’s decisions other New York City banks. The holding com­ under the Bank Holding Company Act and the pany can be a procompetitive form of bank Attorney General’s enforcement of the antitrust expansion, and its use should not be effectively laws, which might otherwise require the un­ foreclosed in infrequent problem bank situations winding of a transaction after that transaction because of delay requirements not similarly im­ had been approved under the Bank Holding posed in bank mergers. Waiver of the usual Company Act. delay provisions undoubtedly would be war­ However, the Bank Merger Act provides for ranted in only a small number of cases, and an exception to this delay in problem cases in those cases the waiver should produce net while the Bank Holding Company Act does not. public benefits. The Board is recommending that, in cases in­ Another— and more sensitive— constraint on volving problem banks or bank holding compa­ bank holding company acquisitions is geo­ nies, the consummation procedures of the Bank graphical in nature. Under the Bank Holding Holding Company Act be fully conformed to Company Act, the Board may not approve any those in the Bank Merger Act. further acquisition of a bank by a bank holding Accordingly, it is proposed that, when the company across State lines.2 This provision was Board has advised a supervisory authority of an made part of the original Bank Holding Com­ emergency requiring expeditious action, con­ pany Act of 1956 in order to halt the further summation be permitted five calendar days after expansion of several large multi-State bank the date of approval. In cases where the Board holding companies then in existence. It was has found that it must act immediately to prevent based in large part on the concern of the Con­ the probable failure of a bank or bank holding gress that, unless this trend were halted, wide­ company, it is recommended that immediate spread and frequent acquisitions by major bank consummation be permitted. In the Board’s holding companies could eventually lead to an judgment, there appears to be no public policy undue concentration of banking resources in the reason for not having parallel consummation United States. In particular, it was thought that, procedures for bank mergers and bank holding absent this provision, holding companies would company acquisitions in problem bank situa­ be used to avoid the multi-State branching pro­ tions because the same reasons exist for not visions of the McFadden Act, and thus it was waiting 30 days for the Attorney General’s also intended to preserve the rights of the States competitive judgment in both cases. As a prac­ in this area.3 tical matter, the Federal banking agencies in such situations have regularly followed the 2 The precise words of Section 3 (d) provide that the practice of informally consulting with the At­ Board may not approve any application under Section torney General in advance in any case large 3 of the Bank Holding Company Act: . . which enough to raise substantial competitive ques­ will permit any bank holding company or any subsidiary thereof to acquire, directly or indirectly, any voting tions. shares of, interest in, or all or substantially all of the The existing statutory delay provisions in the assets of an additional bank located outside of the State Bank Holding Company Act have effectively in which the operations of such bank holding company’s banking subsidiaries were principally conducted. . .. ” eliminated bank holding companies from bid­ 3Under the terms of this provision, a bank holding ding in emergency situations because a bank in company can only acquire a bank outside of its principal severe financial difficulty may not be able to State if the State in which such bank is located takes action to specifically permit such acquisition. If a State survive the 30-day consummation delay. These took such action, the Board would still have to decide provisions have thus unnecessarily limited the the application under the statutory standards of the Bank number of potential acquirers of a problem Holding Company Act. At the time of this Act’s passage in 1956, no State granted such permission. Except for bank. This can increase the anticompetitive risks Iowa, which has enacted a law giving a single grandfa­ in such acquisitions by often limiting the pool thered multi-State bank holding company permission to of potential acquirers to banks already in direct acquire additional banks in that State, and Maine, which recently enacted a law that would allow acquisition of competition with the problem bank, for ex­ a Maine bank by an out-of-State bank holding company ample, in the case of Franklin National Bank, if a Maine bank holding company is given reciprocal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 489 The Board is of the opinion that Section 3 The Board therefore recommends several (d) could, in the case of a large problem bank amendments to the Bank Holding Company Act or a problem bank holding company controlling designed to permit out-of-State acquisitions in a large bank, operate in contravention of both certain emergency and failing bank situations national and local interests. The limitation to involving a large bank or bank holding company in-State bidders may, in the case of a large controlling a large bank. Under Section 1(3) of problem bank, severely limit the number of S. 890 as proposed, the Board would have the potential acquirers and result in an increased authority to make exceptions to the multi-State concentration of banking resources within a prohibitions of Section 3(d) whenever the Board State— contrary to the intent of the Congress in finds that an emergency requiring expeditious passing the Bank Holding Company Act. In action exists with respect to a bank or bank most of our States, the number of locally owned holding company, or that it must act immedi­ banks big and strong enough to absorb a large ately in order to prevent the probable failure problem bank are very few. The only smaller of a bank or bank holding company. The pro­ banks strong enough to undertake such a venture posed authority would be limited, however, to may be those affiliated with powerful commer­ cases involving a bank having assets in excess cial or financial interests domiciled either in this of $500 million or a bank holding company country or abroad. controlling a bank having assets in excess of The problem created by the constraints im­ $500 million. There are three basic reasons for posed by Section 3(d) has been sharpened as limiting this authority to the case of a large bank banks, particularly large banks, have moved or bank holding company controlling a large increasingly from asset to liability management. bank: first, the failure of such an institution can This shift in emphasis has led many larger have damaging effects in both national and institutions to search far afield for money market international markets and on the national econ­ funds. While this has often been of considerable omy; secondly, there may be few, if any, benefit to the customers and communities they prospective acquirers of such an institution have served— particularly in those areas where within any State; and thirdly, the most likely widespread branching is not permitted and local in-State acquirers are likely to be institutions deposit generation is thereby limited— liability of comparable or greater size, which might often management has increased banks’ exposure to pose problems under the antitrust laws and the risks created by any substantial net outflow threaten an increased concentration of banking of such nonlocal and often volatile funds. resources within the State. When adverse news triggers enough outflows The Board chose a $500 million asset cutoff of funds to significantly weaken a bank, it may figure because it would cover major money become necessary in the public interest to fold center and regional banks, whose failure might it into a larger and stronger institution. As you have an adverse effect on regional, national, or know, this occurred in New York and California even international financial markets, yet would where big in-State banks were available to ac­ not be so extensive an exception as to create quire the problem banks involved. Had institu­ a potentially significant loophole to the multitions of the size of Franklin National or of the State prohibitions of the Act. Also, in cases United States National Bank of San Diego failed involving smaller problem banks, local acquisi­ in many other States, however, no banks in tions where appropriate can be more readily those States would have been large enough to arranged by the Federal Deposit Insurance Cor­ acquire them. In such circumstances, the need poration and State authorities than can transfers to be able to arrange acquisitions across State of the liabilities and assets of large institutions. boundaries would become very real. The choice of any cutoff figure involves various public policy considerations by the Congress. The Board stands ready to supply the rights in that holding company’s State, the situation subcommittee with additional data on this issue remains essentially unchanged with no other States granting such permission. if that would be helpful. On the basis of data Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 Federal Reserve Bulletin □ August 1975 prepared by the Board’s staff, a $500 million one, in order not to encourage potential bidders cutoff would cover not only the large money to wait until an ideal acquisition opportunity was center and regional banks but also, in most presented, but it could be less than five, in order cases, the largest bank in any State.4 From our to forestall excessive expansions of financial analysis of cases in which emergency or failing power. In our view, this kind of limit would bank procedures have been used under the Bank serve to preclude any possibility of undue con­ Merger Act, it appears that only three banks centration of economic resources being created acquired under emergency approval procedures through exceptions to Section 3(d).5 have had assets in excess of $500 million (Se­ The Board hopes, of course, that no signifi­ curity National Bank of Long Island, Franklin cant bank will so misbehave that it becomes National Bank of New York, and United States threatened with failure. It would be imprudent, National Bank of San Diego). Thus, the Board however, not to be prepared to deal with that anticipates that this provision would be applica­ ble only in rare cases where there may be 5 As a corollary to its recommended amendment of significant effects upon the national and interna­ Section 3(d), the Board has felt it necessary to also tional economy. recommend an amendment in Section 2 of S. 890 Under Section 1(3) of S. 890 the Board could overriding certain provisions of State law in situations involving a problem bank or bank holding company use this authority to approve a multi-State ac­ where expeditious or immediate action is required. quisition only when it finds, in weighing the Section 7 of the Bank Holding Company Act reserves statutory competitive and other factors, that the to the States their rights to exercise such powers and jurisdiction that they now or in the future may have public interest would best be served if the bank with respect to banks, bank holding companies, and or banks involved were acquired by an out-of- subsidiaries thereof. In problem bank or bank holding State bank holding company. The Board thus company situations, the normal circumstances that may have led a State to enact a statute prohibiting the anticipates that this authority would rarely be formation of bank holding companies within its borders used and only in cases presenting very special or otherwise restricting the entry of out-of-State bank circumstances, such as those involving Franklin holding companies do not apply and therefore such provisions should not be controlling when the Board National Bank. In our view, these relatively rare has approved such application under the immediate or situations would not contravene the central pur­ expeditious action provisions recommended in S. 890. pose of the multi-State prohibition of the Bank In such cases, the national interest argues that Federal law be supreme. In practical terms, even though a State Holding Company Act, which was directed at may favor an acquisition by an out-of-State holding preventing large concentrations of financial re­ company approved by the Board under its immediate sources through frequent multi-State acquisi­ or expeditious action provisions as an alternative to failure, it would probably be impossible either for the tions of banking institutions. State legislature to enact in time any necessary amend­ The Board is sensitive to the fact that the ments to its laws or for a State court to interpret the prohibition on multi-State branching was de­ terms of an unclear statute. The delays involved in trying to pursue either of the above courses of action signed to prevent the evolution of a few large could be crucial. Section 2 of S. 890 would solve these banking institutions. While there would be only problems by providing that in any case where the Board a very limited number of instances in which the has approved an application under the immediate or expeditious action provisions of S. 890, the holding Board would consider making exceptions to company may acquire and operate the bank involved Section 3(d), the amending language could be as a subsidiary notwithstanding Section 7 or any provi­ narrowed even more than was originally sug­ sion of State law that would otherwise prevent the acquisition or restrict the operations of that holding gested. A strict limit could be placed on the company. number of acquisitions any single bank holding Section 2, however, leaves intact State restrictions company would be allowed to make under such on multibank holding companies, so that an out-of-State bank holding company that acquired a bank with the an exception. This limit should be more than Board’s approval under the immediate or expeditious action provisions could not gain a competitive advantage 4From the Board’s figures as of Dec. 31, 1974, this over an in-State holding company by acquiring a second asset cutoff would appear to include some 210 commer­ bank under those provisions. The McFadden Act re­ cial banks across the country, including the largest bank strictions on multi-State branching would not be affected in 39 States and the District of Columbia and the two by Section 2 of S. 890, as such restrictions are a matter largest banks in 35 States and the District of Columbia. of Federal law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 491 eventuality. As a matter of good contingency resolution of problem bank and bank holding planning, the Board recommends prompt enact­ company cases we may encounter and by in­ ment of S. 890. It will serve the public interest creasing the likelihood of more competitive ac­ both by facilitating the speedy and efficient quisitions in such situations. □ Statement by Arthur F. Burns, Chairman, price of oil, another devaluation of the dollar, Board of Governars of the Federal Reserve and the coincidence of booming business around System, before the Committee on Banking, the world played their part in the inflationary Housing, and Urban Affairs, U.S. House of process during 1973 and 1974. Representatives, July 24, 1975. As a result of these myriad developments, seeds of recession were sown across the econ­ I welcome this opportunity to discuss the con­ omy. Inflation led to a burgeoning of credit dition of the national economy and to convey demands, both public and private, and interest the Federal Reserve’s views on monetary pol­ rates soared to unprecedented heights. Rising icy. consumer prices eroded the purchasing power The performance of our economy during the of workers’ incomes and savings. The sharp rise past 2 years has been disappointing. We have in the price of oil caused a diversion of pur­ suffered the most damaging peacetime inflation chasing power to foreign suppliers. Corporate in our Nation’s history, a critical shortage of profits diminished— a fact that businessmen energy supplies, and the deepest decline in were slow to recognize because of accounting business activity since the end of World War techniques that failed to take account of infla­ II. Similar problems have plagued practically tion. Construction of new dwellings and office every industrial country in the world. buildings proceeded on a scale that greatly ex­ The recession of 1974-75 in our country will, ceeded underlying demand. And inventories of I believe, be viewed by economic historians as commodities piled up, often at a very rapid the culminating phase of a long cycle in eco­ pace, as businessmen reacted to fears of short­ nomic activity that began in 1961. During the ages and of accelerating price increases. industrial phase of the long upswing—from By the spring of 1973, signs of faltering in 1961 through 1964—productivity grew rapidly, the pace of economic expansion had already prices remained quite stable, and real wages and emerged. Homebuilding began to turn down and profits kept advancing. During the next 10 so too did sales of mobile homes, new autos, years— from 1965 through 1974— the strength and other big-ticket consumer items. A declin­ of the American economy was gradually under­ ing trend in the physical volume of other goods mined. A succession of interrelated, partly purchased by consumers soon followed. These overlapping, waves of speculation occurred— developments, however, were largely over­ first in merging business enterprises and organ­ looked by a business community caught up in izing conglomerates, next in the stock market, the euphoria created by inflation. New orders then in the real estate market, and finally in the flowing to manufacturers continued to rise, markets for industrial materials and other com­ order backlogs generally increased, and stock­ modities. During this long speculative phase, piles of materials and other commodities productivity languished and expansion in the mounted. By the summer of 1974, the physical physical volume of output decelerated, while the volume of business inventories was already pace of inflation kept quickening— mainly, but higher in relation to sales than at any time since by no means entirely— in response to the lax the Korean war. The stage was thus set for a financial practices of the Federal Government. significant economic adjustment. Bad harvests, extraordinary increases in the The recession that ensued has cut deeply into Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 Federal Reserve Bulletin □ August 1975 the Nation’s economic life. Between September large amounts of longer-term securities this 1974 and May 1975, industrial output fell by year, and they have used much of the proceeds HVi per cent. Total employment dropped by 2Vi to repay short-term debt or to acquire liquid million from its peak in October 1974 to a low assets. The liquidity position of consumers has in March of this year. And the rate of unem­ likewise been strengthened; instalment debts to ployment rose from less than 5 per cent in late banks and other lenders have been paid down, 1973 to perhaps 9 per cent at the present time. and many millions of individuals have added In view of the serious economic imbalances substantially to their savings deposits and other caused by inflation, the recession has been per­ liquid assets. forming a painful, but unavoidable, function. Financial institutions, too, have improved Corrective forces have been released and they their financial condition. Commercial banks have helped lay the basis for a renewal of sound have taken advantage of the reduced demand economic expansion. for business and consumer loans to repay their Thus, business competition is now much borrowings from Federal Reserve Banks, to keener than it was a year or two ago. Business reduce their reliance on volatile sources of managers are also devoting more attention to funds, and to rebuild liquid assets. In their turn, cost control and improvements in efficiency. savings and loan associations and mutual sav­ Prices of industrial raw materials have fallen ings banks reduced their indebtedness and en­ substantially. Price increases at later stages of larged their holdings of Treasury securities and processing have also become less extensive. The other liquid assets, thus laying the basis for a rise of the general price level has therefore renewed expansion of mortgage lending in re­ slowed—from an annual rate of about 12 to 14 cent months. per cent late last year— to about half that rate These self-corrective forces have been aided recently. Increases of wage rates, moreover, powerfully by fiscal and monetary policies that have moderated, although they still are much sought to cushion the effects of economic ad­ higher than the long-run rate of improvement versity, moderate recessionary forces, and pro­ in productivity. Meanwhile, stock prices— a vide some stimulus to economic recovery. I significant indicator of the state of confi­ need not dwell on the fiscal measures that have dence—have risen substantially. been adopted to combat recessionary forces; The slowdown in the pace of inflation and these measures have already been widely dis­ the revived stock market have bolstered the cussed. Let me note merely that I believe the confidence of the general public. Early this year, Congress acted wisely in providing only a tem­ as price concessions on autos and other items porary fiscal stimulus through the Tax Reduction became common, consumer purchases— espe­ Act of 1975. The confidence of our citizens in cially of durable goods— began to pick up. In the Nation’s economic future has been bolstered fact, consumer expenditures during the first by evidence that responsible members of both quarter rose in real terms as well as in dollars. the executive and legislative branches of our This strengthening continued in the second Government are seeking ways to stimulate re­ quarter, as spendable incomes of consumers covery without releasing a new wave of infla­ were augmented— first by tax rebate checks, tion. later by extra social security checks. With con­ This principle has also guided monetary pol­ sumer buying expanding and production declin­ icy. Last summer, as signs of weakening in ing, the efforts of business firms to work down economic activity multiplied, the Federal Re­ their excess stocks have been remarkably suc­ serve began taking steps to increase the avail­ cessful. Inventories of most consumer goods ability of money and credit. Open market now seem to be in rather good balance with operations were oriented toward a more liberal sales. provision of reserves to the banking system; Significant progress has also been made in later, these actions were reinforced by several improving the financial position of business reductions in the discount rate and in reserve firms. Corporations have issued exceptionally requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 493 During the fall and winter months the demand borrowers in the municipal bond market. Also, for credit by businesses and consumers weak­ the huge financing demands of the Treasury ened on account of the recession, and commer­ have been a disturbing element in the money cial banks used the more abundant supply of and capital markets. reserves to repay their indebtedness to the Fed­ Despite these problems conditions in financial eral Reserve. Growth in M u that is, currency markets have greatly improved over the past 6-9 plus demand deposits, was therefore slow to months, and a financial basis has been estab­ reflect the easing of monetary policy. We at the lished for an upturn in business activity. Federal Reserve were concerned about this de­ Signs have multiplied in recent weeks that velopment, but we refused to run the risk of the economy is moving through a turning zone releasing fresh inflationary forces and rekindling from recession to recovery. As already noted, inflationary expectations. In any event, broader retail sales have been gaining strength progres­ monetary aggregates displayed a more vigorous sively since early this year. The appreciable response to our easing actions. For example, pick-up in new auto sales over the past several flows of individual savings into commercial months is continuing. Sales of new houses banks and thrift institutions began to pick up started rising early this year, and as the backlog in the fourth quarter of 1974, and by the first of unsold units declined building permits and quarter of this year these deposits were expand­ new housing starts also began to move up. ing at a seasonally adjusted annual rate of more With excess inventories at retail, at whole­ than 13 per cent. In fact, recent rates of growth sale, and at manufacturing firms being worked of the monetary aggregates have been generally off and the curve of consumer sales still rising, higher than during comparable periods of earlier businessmen have become more optimistic postwar recessions. about the future. New orders for durable The efforts of the Federal Reserve to ease goods— an important leading indicator of in­ credit conditions, together with the weakening dustrial activity—have of late been rising again. of private credit demands, resulted in a sharp Moreover, industrial production, after having decline of short-term rates of interest. The Fed­ declined for eight consecutive months, regis­ eral funds rate— that is, the interest rate banks tered its first advance in June. pay when borrowing reserves from one an­ In the labor market, too, there are numerous other— fell from a high of 13V2 per cent last signs of improvement. The range of nonfarm summer to about 5lA per cent in early June. industries adding to the number on their payrolls The commercial paper rate declined from more has been widening steadily, from a low of 17 than 12 per cent last July to a low of about per cent in February to about 50 per cent in 5% per cent. And the prime rate of interest on May and June; total employment has increased bank loans to businesses fell from 12 per cent by 600,000 over the past 3 months; the average to a low of 7 per cent. factory workweek has lengthened; and, of late, In the markets for long-term securities interest initial claims for unemployment insurance have rates also declined, although much less than dropped sharply. short-term rates. Of course, long-term rates We may be reasonably confident, therefore, typically fluctuate within a narrower range than that a recovery in business activity will develop short-term rates; but in the present instance, soon if it is not already under way. How strong other powerful factors have also been at work. the recovery will be no one can foresee with Fears of inflation are still widespread, and long­ any assurance. There are ample amounts of idle term interest rates therefore still contain a siz­ labor and capital resources to permit rapid able inflation premium. Moreover, corporations growth over the next several quarters. Past cy­ have issued an enormous volume of bonds in clical experience suggests, moreover, that a the first half of this year; State and local gov­ steep decline in business activity such as we ernments have borrowed large sums in the capi­ have experienced is usually followed by a brisk tal markets; and troublesome uncertainties have recovery. been created by the financial problems of some A central objective of Federal Reserve policy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 Federal Reserve Bulletin □ August 1975 at the present time is to contribute to a substan­ the Federal Reserve should devote almost ex­ tial expansion in output and employment. The clusive attention to the behavior of Mx—that is, vigor of economic recovery, however, will currency plus demand deposits. We in the Fed­ depend less on the rate of expansion in money eral Reserve do not take so narrow a view of and credit than on the confidence of the pub­ our responsibilities. lic— in particular, the willingness of businesses The public’s demand for currency, for and consumers to put the enormous volume of checking deposits, for savings deposits, and for existing money balances to work. a host of other liquid assets is constantly chang­ The turnover of money, or its velocity, varies ing. Financial technology in our country has widely in the course of a business cycle. During developed rapidly in the past 20 to 30 years. the first year of earlier postwar recoveries, the As a rule, consumer and business firms no velocity of M x— that is, the ratio of the dollar longer hold all, or even most, of their spendable value of the gross national product to the nar­ funds in the form of currency or demand depos­ rowly defined money supply—has usually risen its. More and more corporate treasurers have about 5 or 6 per cent, compared with a rate learned how to get along with a minimum of of increase in Mx of around 3 or 4 per cent. deposits in their checking accounts. Consumers, As confidence in the economy improves in the too, have learned to keep an increasing part of months ahead, the velocity of money— which their transactions and precautionary balances in declined during the past several quarters— will the form of savings deposits at commercial probably increase significantly. This factor is banks, or deposits in savings and loan associa­ frequently neglected by economists and others, tions, or certificates of deposit, or Treasury but we at the Federal Reserve cannot afford to bills, or shares in money market funds, or other do so. income-earning liquid instruments. These trends In conducting monetary policy, we will also are likely to continue. Use of so-called negotia­ have to remain mindful of the urgency of deal­ ble order of withdrawal (NOW) accounts and ing with the longer-run problem of inflation as other interest-bearing deposits for transactions well as with the current problem of unemploy­ purposes is growing, and electronic funds ment. Economic recovery is apparently begin­ transfer systems may well revolutionize the ning at a time when the rate of inflation, while payments mechanism and the forms in which lower than a year ago, is still well above a money is held. In this day and age no single tolerable pace. Our objective as a Nation should concept of money conveys adequately the be to achieve further moderation in the advance spendable funds held by the public. of the general price level over the months ahead, Viewed in isolation, the behavior of the nar­ and we shall therefore need to avoid actions that rowly defined money supply, Mu can actually threaten an acceleration of inflation later on— a be a misleading guide to the degree of monetary development that would create even more in­ ease or restraint. For example, in periods of tractable economic problems than we have yet declining economic activity, both the transac­ encountered. I was glad to see the Senate Com­ tions demand for cash and the private demand mittee on Banking, Housing, and Urban Affairs for credit will tend to weaken and thus slow recognize this basic truth in its recent report on the growth of Mx. But during such periods monetary policy, which states unequivocally market rates of interest usually decline and that “if inflation is rekindled, any recovery will thereby stimulate faster rates of growth of con­ be short-lived and will end in another recession, sumer-type deposits at commercial banks and one almost certain to be more virulent than the other financial institutions. present one.” During periods of economic expansion, the In testifying before that committee on May behavior of M x may again be misleading. At 1 of this year, I indicated that the course of such times large demands for credit and money monetary policy cannot be understood ade­ are likely to strengthen the growth of Mls but quately by focusing on any single measure of open market interest rates will tend to rise and money balances. Some observers believe that thereby curtail the flow of individual savings to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 495 banks and thrift institutions. A monetary policy growth ranges announced earlier. In view of the formulated on the basis of Mx alone would erratic movements to which monthly figures on ignore the pressures of disintermediation that money balances are subject, the projected develop in periods of economic expansion and growth ranges for the several aggregates now thus threaten serious damage to the mortgage cover the 12-month span from the second quar­ market and to the homebuilding industry. ter of 1975 to the second quarter of 1976. In To avoid errors of this kind, the Federal the future, we will generally express our pro­ Reserve takes into account the behavior of nu­ jected growth range of each monetary aggregate merous monetary and credit aggregates in con­ from a quarterly base because a 3-month ducting monetary policy. Among these is M2, average is less subject to erratic movements than which includes—besides currency and demand is a single-month base. deposits—consumer-type time deposits at com­ We have recently experienced some extreme mercial banks; M3, a still broader composite, short-run fluctuations in the growth rate of which includes also the deposits at savings money balances. Such movements may give rise banks, savings and loan associations, and credit to confusion regarding the course of monetary unions; M4, which starts with M2 and adds large policy. It may be helpful, therefore, to comment certificates of deposit issued by commercial on the huge bulge in the rate of growth of the banks; M5, which is more comprehensive than monetary aggregates during May and June. any of the preceding aggregates because it in­ This bulge was a direct result of the tax bill cludes the currency holdings of the public plus passed earlier this year by the Congress. The all deposits at all financial institutions; and also tax rebate checks and supplemental social secu­ the credit proxy, which indicates the funds that rity payments disbursed by the Treasury were member banks have available for lending. temporarily added to the public’s holdings of Besides following these and still other aggre­ currency, demand deposits, and savings ac­ gates, we pay careful attention to the condition counts. Thus, Mx grew at an average annual of financial markets—that is, to movements in rate of more than 14.5 per cent during the interest rates, lending terms, the liquidity needs months of May and June, and M2 increased at of businesses and financial institutions, and a rate of about 16 per cent. But by late June other variables, including the foreign exchange and early July, as individuals disposed of their value of the dollar. All of these must be given additional funds, the explosion of the monetary some weight in the conduct of monetary policy. aggregates subsided. On May 1 of this year, I informed the Senate The May-June bulge in the monetary aggre­ Banking Committee that the Federal Reserve gates did not come as a surprise, but it was was seeking a moderate rate of expansion in larger than we had expected—and very much the monetary and credit aggregates, and that the larger than we desired. It must be clearly un­ course we are pursuing will promote an increase derstood that the Federal Reserve has no inten­ in of between 5 and IV2 per cent over the tion of permitting rates of increase as high as 12 months ending in March 1976. It was ex­ those in the second quarter to continue. The pected that the related growth rates of other special Treasury disbursements have come to an major aggregates would be somewhat higher— end; and the Federal Reserve has already set with M2 increasing in a range of 8V2 to IOV2 in motion forces that should, in the near future, per cent; M3, in a 10-12 per cent range; and return the growth of the monetary aggregates the credit proxy, in a range of 6V2 to 9Vi per to the moderate path desired. True, these recent cent. actions have left their mark on short-term mar­ Economic prospects now are not materially ket rates of interest. But we have succeeded in different than the Federal Reserve anticipated avoiding during the past 2 to 3 months the 2 or 3 months ago, and we therefore as yet see severe and damaging effects on credit markets no reason to alter the general course of monetary that would have occurred if we had pursued a policy. Accordingly, the Federal Open Market rigid money supply objective such as some Committee has reaffirmed its intent to seek the economists keep urging on us. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 Federal Reserve Bulletin □ August 1975 As recent experience indicates, short-run purchase or sale, however, is determined by variations in the stock of money may not at all decisions of commercial banks and of the public reflect the intent or the underlying course of at large—decisions over which we have no Federal Reserve policy. My colleagues and I control. have frequently noted that short-run movements For example, a purchase of securities by the of the monetary stock have little significance, Federal Reserve would lead to little or no in­ and it is good to have the opportunity to state crease in the reserves of member banks if there once again that far more attention is given to were an equivalent rise in the public’s holdings these short-run fluctuations than is warranted. of currency, or if member banks used the addi­ Actually, our studies indicate that large devia­ tional funds to repay indebtedness to their Fed­ tions in the growth of money from a long-run eral Reserve Banks. Alternatively, member path may occur for half a year or even longer banks might choose to add to their excess re­ and still have a negligible effect on the workings serves instead of employing the newly acquired of the real economy. We must learn to recognize funds for lending or investing. In that event, that monthly fluctuations such as those in the there would be no multiplier effect of reserve rate of growth of the money stock, however expansion on deposit creation. defined, are characteristic of almost any series The choices made by the public as to the form in which monthly changes are small relative to in which newly created deposits are held and the level of the series. the type of commercial bank in which the funds In view of considerations such as these, the are deposited also influence the response of the Federal Reserve focuses its attention principally money stock, particularly or M2, to a re­ on an appropriate growth of money balances serve injection. The response of the narrowly over periods running from 6 months to a year. defined money supply would be larger if the Unfortunately, our ability to control this public increased its holdings of demand deposits longer-run rate of monetary expansion is less at smaller member banks because reserve re­ precise than it should or could be. Deficiencies quirements at these banks are lower than those in existing statistical data are part of the prob­ at the larger member banks. And, of course, lem. Steps have been taken by the Federal the freedom of the public to choose between Reserve to speed the collection of data and to demand and time deposits can alter materially improve its quality. We have also been explor­ the amount of aggregate deposits that can be ing, with the cooperation of the FDIC, methods supported by a given volume of reserves. to obtain better estimates of money balances Part of the imprecision in monetary control held at nonmember banks. The information now also arises from the fact that a sizable fraction available regarding demand deposits at non­ of money balances is held at banks that are not member banks is entirely inadequate and at subject to the reserve requirements set by the times has misled the Federal Reserve and the Federal Reserve. Once the Congress sees fit to public as to the actual course of monetary ex­ adopt the legislation on uniform reserve re­ pansion. quirements that we have been seeking for sev­ Our control over the Nation’s money stock eral years, the Federal Reserve’s control over would be imprecise, however, even with the the monetary aggregates will be improved and best of statistical information. The Federal Re­ financial institutions offering similar deposit serve’s influence over the money stock is indi­ services will at the same time be treated more rect. The principal means we use to regulate the equitably. growth of money and credit is to buy or sell In closing, let me remind this distinguished government securities in the open market. These committee that the growth ranges for the mone­ transactions are taken at our initiative and in tary aggregates that we have projected for the such dollar amounts as we deem appropriate. next year may need to be adjusted one way or The size of the Federal Reserve’s portfolio of another. Clearly, the growth rates presently securities is thus under our control. The re­ sought by the Federal Reserve, while appro­ sponse of the money stock to an open market priate in the present environment of high unem­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 497 ployment and unused industrial capacity, could Government must work to promote a good re­ not be maintained indefinitely without rekin­ covery in economic activity ; but all of us must dling inflationary forces. As the economy re­ also take great care lest the hard-won gains of turns to higher rates of resource utilization, it the past year are nullified by a new round of will be necessary to reduce the rate of monetary inflation. The rise of the consumer price level and credit expansion so that the basis for a in June at an annual rate of more than 9 per lasting prosperity is laid. cent is a warning that the menace of inflation We must not lose sight of the fact that the is still very much with us. The task now facing principal cause of the current recession is an our country, therefore, is not only to hasten the inflation that got out of control. Our Nation has process of economic recovery but also to un­ paid a heavy price during the past year for wind the inflation and thus lay the basis for a neglect of this serious problem. All of us in lasting prosperity. □ Statement by Arthur F. Burns, Chairman, a burgeoning of credit demands, both public and Board of Governors of the Federal Reserve private, and interest rates soared. System, before the Joint Economic Committee, These developments, however, were largely July 29, 1975. overlooked by a business community caught up in the euphoria created by inflation. New orders flowing to manufacturers continued to rise, I am pleased to meet once again with this order backlogs generally increased, and stock­ distinguished committee to present the views of piles of materials and other commodities the Board of Governors on the condition of the mounted. By the summer of 1974 the physical national economy. volume of business inventories was already The performance of our economy during the higher in relation to sales than at any time since past 2 years has been disappointing. We have the Korean war, but inventories still kept suffered the most damaging peacetime inflation climbing. The stage was thus set for a signifi­ in our Nation’s history, a critical shortage of cant economic adjustment. energy supplies, and the deepest decline in Business activity began to decline sharply in business activity since the end of World War the autumn of last year. Between September II. 1974 and May 1975 industrial output fell by Signs of faltering in the pace of economic 12.5 per cent. As a result, a substantial part expansion had already emerged in the spring of of the Nation’s industrial plant became idle; 1973. Homebuilding began to turn down, and total employment dropped by 2.5 million from so too did sales of mobile homes, new autos, its peak in October 1974 to a low in March and other big-ticket consumer items. A declin­ of this year; the length of the average workweek ing trend in the physical volume of other goods declined; the rate of unemployment rose from purchased by consumers soon followed. under 5 per cent in late 1973 to perhaps 9 per In the winter of 1973-74 the Arab embargo cent at the present time; and business profits on oil exports caused some interruption of eco­ slumped. nomic activities. A related and perhaps more The recession has cut deeply into the Nation’s ominous development was a quickening of the economic life, but it has at the same time been rate of inflation. The steep rise in oil prices performing an unavoidable function. Because of diverted purchasing power to foreign suppliers. the neglect of inflation over the previous decade, Rising prices of consumer goods and services our national economy was in serious trouble a eroded the purchasing power of workers’ in­ year ago. Inflation was raging. Industrial com­ comes and savings and resulted in a further modity prices in wholesale markets were rising weakening of retail sales. Inflation also led to at an annual rate of over 25 per cent. Interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 Federal Reserve Bulletin □ August 1975 rates were at record highs. Not a few financial flected in a recovery of stock and bond prices. and industrial firms were encountering difficul­ Interest rates on short-term securities declined ties in rolling over their commercial paper or very sharply. The Federal funds rate—that is, in raising funds through other channels. Can­ the interest rate banks pay when borrowing cellations or postponements of corporate bond reserves from one another—fell from a high of and stock offerings were announced almost 13V2 per cent last summer to about 5lA per cent daily. Stock prices plummeted. Fears spread in early June. The commercial paper rate de­ that real estate investment trusts, public utilities, clined from over 12 per cent last July to a low other business enterprises, and even banks of about 5Vi per cent. And the prime rate of might be unable to weather the gathering finan­ interest on bank loans to businesses fell from cial storm. And many millions of American 12 per cent to a low of 7 per cent. workers, investors, and businessmen became Interest rates on long-term securities declined deeply concerned about their own and the Na­ much less than short-term rates. Long-term rates tion’s economic future. typically fluctuate within a narrower range than We have by no means found a satisfactory short-term rates; but in the present instance solution to all the economic and financial prob­ other powerful factors have also been at work. lems that troubled us a year ago. Confidence, Fears of inflation are still widespread among however, is reviving as a result of the corrective both lenders and borrowers, and long-term in­ forces that have been at work in recent months. terest rates therefore still contain a sizable in­ Thus, business competition is now much flation premium. keener than it was a year or two ago. Business As the condition of our money and capital managers are also devoting more attention to markets improved, so also did the financial cost control and improvements in efficiency. position of business firms. Corporations have Prices of industrial raw materials have fallen issued exceptionally large amounts of longersubstantially. Price increases at later stages of term securities this year, and they have used processing have also become less extensive. The much of the proceeds to repay short-term debt rise of the general price level has therefore or to acquire liquid assets. The liquidity position slowed—from an annual rate of about 12 to 14 of consumers has likewise been strengthened; per cent late last year to about half that rate instalment debts to banks and other lenders have recently. Increases of wage rates, moreover, been paid down, and many millions of individ­ have moderated, although they are still much uals have added substantially to their savings higher than the long-run rate of increase in deposits and other liquid assets. productivity. Financial intermediaries, too, have improved As industrial activity declined in our country, their condition. Commercial banks have taken the need to import industrial materials and other advantage of the reduced demand for business goods diminished. Our merchandise exports, on and consumer loans to repay their borrowings the other hand, continued to reflect the im­ from Federal Reserve Banks, to reduce reliance provement of our competitive position in world on volatile sources of funds,, and to rebuild markets during the past 2 or 3 years. The foreign liquid assets. In their turn, savings and loan trade balance of the United States therefore associations and mutual savings banks have moved from a sizable deficit in the first half of reduced their indebtedness and enlarged their 1974 to a substantial surplus this year. This holdings of Treasury securities and other liquid development helped to cushion the decline in assets, thus laying the basis for the renewed domestic economic activity, and it also contrib­ expansion of mortgage lending during recent uted to the strengthening of the dollar in foreign months. exchange markets since last March. The dollar, The beneficial effects of easier conditions in I am glad to say, is re-establishing itself as the financial markets and of the moderation of in­ strongest currency in the world. flation began to appear in markets for goods and In financial markets the marked improvement services while recessionary forces were still in sentiment over the past year has been re­ spreading. For example, new mortgage loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 499 commitments of savings and loan associations branches of our Government are seeking ways began to turn up in November of last year. By to stimulate recovery without releasing a new January sales of new single-family homes were wave of inflation. also rising. The backlog of unsold units there­ This principle has also guided monetary pol­ fore declined, and residential building began to icy. Last summer, as signs of weakening in recover. economic activity multiplied, the Federal Re­ In consumer markets price concessions on serve began taking steps to increase the avail­ autos and other items became common early this ability of money and credit. Open market year, and retail sales—especially of durable operations were oriented toward a more liberal goods—expanded. In fact, consumer expendi­ provision of reserves to the banking system; tures during the first quarter rose in real terms later, these actions were reinforced by several as well as in dollars. This upward trend contin­ reductions in the discount rate and in reserve ued in the second quarter as spendable incomes requirements. of consumers were augmented—first by tax re­ During the fall and winter months the demand bate checks, later by extra social security for credit by businesses and consumers weak­ checks. ened on account of the recession, and commer­ With consumer purchases expanding and cial banks used the more abundant supply of production declining, the efforts of business reserves to repay their indebtedness to the Fed­ firms to work down their excess stocks have eral Reserve. Growth in —that is, currency been remarkably successful. In the second plus demand deposits—was therefore slow to quarter of this year, inventory liquidation reflect the easing of monetary policy. We at the reached an annual rate of around $35 billion—or Federal Reserve were concerned about this de­ about 2% per cent of the dollar value of the velopment, but we refused to run the risk of gross national product. This is the largest de­ releasing fresh inflationary forces and rekindling cline of inventories relative to the GNP in any inflationary expectations. In any event, broader quarter of the entire postwar period. The rate monetary aggregates displayed a more vigorous of production in the second quarter was thus response to our easing actions. For example, unusually low relative to final sales. With the flows of individual savings into commercial level of inventories in most consumer lines now banks and thrift institutions began to pick up in rather good balance with sales, the base has in the fourth quarter of 1974; and by the first been laid for a recovery in aggregate economic quarter of this year, these deposits were ex­ activity. panding at a seasonally adjusted annual rate of Correction of the economic and financial im­ more than 13 per cent. balances of a year ago has resulted, in large Federal Reserve actions to increase the avail­ part, from the internal workings of the business ability of reserves take some time to work their cycle. These self-corrective forces have been way through the economic system. As a conse­ aided powerfully, however, by fiscal and mone­ quence, some of the effects of easier Federal tary policies that sought to cushion the effects Reserve policies during a recession may not of economic adversity, moderate recessionary register in M1? the narrowly defined money forces, and provide some stimulus to economic stock, until the demand for transactions balances recovery. I need not dwell on the fiscal measures begins to strengthen. That may well have been that have been adopted to combat recessionary a factor in the huge bulge of the money supply forces; these measures have already been widely during May and June of this year. However, discussed. Let me note merely that I believe a large part of this bulge was also the direct the Congress acted wisely in providing only a result of the tax bill passed earlier this year by temporary fiscal stimulus through the Tax Re­ the Congress. The tax rebate checks and sup­ duction Act of 1975. The confidence of our plemental social security payments disbursed by citizens in the Nation’s economic future has the Treasury were temporarily added to the been bolstered by evidence that responsible public’s holdings of currency, demand deposits, members of both the executive and legislative and savings accounts. Thus, Mx grew at an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 Federal Reserve Bulletin □ August 1975 average annual rate of 14V2 per cent during the clined in eight consecutive months, registered months of May and June, and M2—which in­ its first advance in June. cludes consumer-type time deposits at commer­ In the labor market, too, there are numerous cial banks, besides currency and demand de­ signs of improvement. The range of nonfarm posits—increased at a rate of about 16 per cent. industries adding to their payrolls has been By late June and early July, as individuals widening steadily, from a low of 17 per cent disposed of their additional funds, the explosion in February to about 50 per cent in May and of the monetary aggregates subsided. June; total employment has increased by 600,- Over the past three quarters as a whole—that 000 over the past 3 months; the average factory is, during the period of steeply declining busi­ workweek has lengthened; and of late, initial ness activity—the additions to money and credit claims for unemployment insurance have supplies have been on the generous side for an dropped substantially. economy that is continuing to suffer from infla­ We may be reasonably confident, therefore, tion. In fact, the growth rates of the monetary that a recovery in business activity will develop aggregates during this recession have been ap­ soon if it is not already under way. Inventory preciably higher than during comparable periods liquidation in some lines—particularly among of earlier postwar recessions. The narrowly de­ producers of capital equipment—seems likely to fined money stock, M1? increased at an annual continue for a time, and an upturn in business rate of about 5 per cent from the third quarter fixed investment may lag behind the expansion of 1974 to the second quarter of this year. in general economic activity. In many sectors, Increases in broader measures of money bal­ however, the need to rebuild stocks in response ances were considerably larger over this period. to improving sales will add a strong upward For example, M3—which includes all con­ thrust to industrial production and to employ­ sumer-type time deposits at depositary institu­ ment in the months ahead. As uncertainties tions, in addition to currency and checking about jobs and earned incomes abate, consumer accounts—rose at an annual rate of 9 per cent spending will advance further. A significant rise over the three quarters. As these facts indicate, in residential building activity may also be ex­ Federal Reserve policy contributed materially to pected because the underlying improvement in establishing the financial basis for an upturn in the condition of real estate markets has just business activity. begun to register in rising new home con­ In recent weeks signs have multiplied that the struction. economy is moving through a turning zone from The outlook for our foreign trade balance, recession to recovery. Improved markets for while less clear, also appears to be favorable. consumer goods have been leading the way, To be sure, recent trade surpluses reflect in part with retail sales gaining strength progressively the impact of the decline in domestic activity since early this year. The appreciable pick-up on our imports—especially of fuels and indus­ in new auto sales over the past several months trial supplies. A revival of economic activity is continuing and so is the uptrend in sales of here will tend to boost these imports; but once residential real estate. Sales of new houses in foreign economies begin to recover, which May were 50 per cent above their trough of last seems likely before the year comes to an end, December, and the backlog of unsold units is our exports of industrial materials will also pick down to 8 months’ supply at recent sales rates. up. Exports of machinery have been maintained With excess inventories at retail, wholesale, at a high level this year despite the weakness and manufacturing firms being worked off and of foreign economies; these exports may be the curve of consumer sales still rising, busi­ expected to do well over the next year. And nessmen have become more optimistic about the in view of unsatisfactory harvests abroad, our future. New orders for durable goods—an im­ exports of grain will be large—perhaps even portant leading indicator of industrial activity— embarrassingly large. have risen in each of the past 3 months. More­ Recovery from the recession of 1974-75 thus over, industrial production, after having de­ seems likely to be broadly based. How strong Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 501 the recovery will be, no one can foresee with does the monetary stock itself. This basic fact any assurance. The amounts of idle labor and about the business cycle must never be over­ capital resources are certainly sufficient to per­ looked in judging the reasonableness of mone­ mit rapid growth over the next several quarters. tary growth rates. Past cyclical experience suggests, moreover, I might add that materially higher or lower that a steep decline in business activity such as monetary aggregates than the Federal Reserve we have experienced is usually followed by a has projected for the coming year would involve brisk recovery. serious risks. If, for example, the expansion of We must recognize, however, that our econ­ Mx were held down to 3 or 4 per cent, short-term omy is confronted with some troublesome interest rates might rise rapidly and impede problems to which public policy must attend if economic recovery. On the other hand, if a full employment is to be regained. Energy prices growth rate of 8 or 10 per cent were sought, are extraordinarily high, and they may well rise inflationary expectations would be intensified further. Shortages of energy supplies and other and larger increases in prices and costs would industrial materials could become a serious im­ be encouraged. In these circumstances, long­ pediment to the expansion of production and term interest rates would tend to rise because jobs in a year or two. Our financial markets, investors would insist on getting, and borrowers meanwhile, will have to absorb a huge volume would be willing to pay, a higher inflation of Treasury securities this fiscal year—at a time premium. It is highly important to bear in mind when private credit demands will be expanding the longer-run effects of the policy alternatives to finance larger economic activity. To make now available to the Federal Reserve. More matters worse, inflation is still adding its own rapid monetary growth would indeed tend to dimension to pressures in financial markets. hold down short-term interest rates and thus The vigor of economic expansion in the year impart some immediate stimulus to economic ahead, and even more over the next few years, activity. But long-term interest rates would soon will depend heavily on the ability of our Gov­ rise and perhaps frustrate any reasonable pros­ ernment to find ways to cope with these diffi­ pect of recovery in housing or business capital culties. Let me therefore turn to the implications investment. of these problems for public policy. As I noted earlier, the growth of monetary As far as the Federal Reserve is concerned, aggregates in recent months has been well above the only responsible policy is to pursue a mod­ the longer-run rates of expansion that we have erate course of monetary and credit expansion, been seeking. The Federal Reserve has no in­ such as I described before the House Committee tention of permitting rates of increase as high on Banking, Currency, and Housing a few days as those in the second quarter to continue. The ago. special Treasury disbursements have come to an The relation over time between money bal­ end; and we have already set in motion forces ances and the physical volume of economic that should, in the near future, return the growth activity is rather loose because so much depends of the monetary aggregates to the moderate path on the attitudes of businessmen and consumers desired. These recent actions have left their as well as on other governmental policies that mark, if only temporarily, on short-term market are pursued simultaneously. But with M1 grow­ rates of interest. But if that had not occurred, ing in a range of 5 to IV2 per cent, and more the business and financial community, which comprehensive measures of money expanding nowadays is highly sensitive to monetary substantially faster than this, it should be en­ growth rates, might well have concluded that tirely possible to finance a recovery of normal the Federal Reserve is releasing a new wave cyclical dimensions over the next year. History of inflation. Any such interpretation by market teaches that the turnover of money—that is, the participants could have had damaging effects on willingness of people to use their existing economic prospects at this stage of the business money balances—tends to rise much faster in cycle. the recovery stage of the business cycle than As I believe this committee recognizes, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 Federal Reserve Bulletin □ August 1975 growth ranges for the monetary aggregates that ronment, conventional thinking about a stabili­ we have projected for the next 12 months may zation policy is insufficient. We need to reopen need to be adjusted one way or another. Clearly, our economic minds and actively seek ways of the growth rates presently sought by the Federal achieving reasonably full employment without Reserve, while appropriate in the present envi­ resorting to ever larger monetary and fiscal ronment of high unemployment and unused in­ stimuli. dustrial capacity, could not be maintained in­ A part of our recent problem of continuing definitely without giving up the fight against inflation amidst widespread unemployment inflation. As the economy returns to higher rates stems from a failure to attend sufficiently to of resource utilization, it will be necessary to modernization and improvement of our Nation’s reduce the rate of monetary and credit expansion industrial plant. Our country has been devoting in order that the basis for a lasting prosperity is relatively less of its economic resources to laid. business capital expenditures than any other Timely steps may also be needed to reduce major industrial nation in the world. The result the degree of fiscal stimulation as economic has been a diminishing rate of increase in pro­ recovery proceeds. The gigantic budget deficits ductivity, the emergence in 1973 and 1974 of for fiscal 1975 and 1976—coming on top of the severe shortages of critically needed industrial persistent Federal deficits of the past decade— materials and supplies, and continuing upward are a major source of the inflationary expecta­ pressure on costs and prices. Renewed scarcities tions that are holding up long-term interest rates. of major materials—such as steel, industrial When anticipations of inflation are as pervasive chemicals, and plastics—could impede the pro­ as they are today, the only effective device jected economic recovery unless action is taken available to the Federal Reserve for holding soon to step up the rate at which modern facili­ down long-term interest rates is to pursue a ties are expanded in these industries. moderate monetary policy. But fiscal policy can The inadequate rate of investment among also be very helpful in this regard. The Ameri­ American enterprises reflects to a large degree can people are awaiting further evidence that the fact that business profits over the last decade their Government will restore the fiscal disci­ have fallen short of the amounts needed to pline needed to cope with inflation. The Board finance a good rate of growth of effective in­ of Governors therefore urges this influential dustrial capacity. Last year the after-tax domes­ committee to use its good offices to press for tic profits of nonfinancial corporations—exclud­ moderation in fiscal affairs during this and the ing inventory gains—were actually smaller than next fiscal year. they were 8 or 10 years ago when the dollar Our country is confronted today with a volume of the output of these corporations was serious dilemma in its search for ways to move about half what it is today. the economy toward full employment. Highly The slump of profits, besides its adverse ef­ expansionary monetary and fiscal policies fect on investment, has led to increasing de­ might, for a short time, provide some additional pendence of business corporations on borrowed thrust to economic activity. But, later on, the funds. The amount of debt owed by corporations rate of inflation would accelerate sharply—a relative to their equity position has risen sharply development that would create even more for more than a decade, and many businesses difficult economic problems than we have yet therefore no longer have the resiliency they once encountered. The Senate Committee on Bank­ had to resist economic and financial adversity. ing, Housing, and Urban Affairs has recognized There is a clear need in our country not only this basic truth. Its recent report on monetary for larger business capital investment but also policy states unequivocally that “if inflation is for larger reliance on equity funds in financing rekindled, any recovery will be short-lived and capital expenditures. will end in another recession, one almost certain These objectives may be promoted by an to be more virulent than the present one.” overhaul of the structure of Federal taxation. In the current economic and financial envi­ Value-added taxes are widely used in Western Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 503 Europe, and it may be instructive to re-examine We at the Federal Reserve are concerned, as the merits of such a tax for our country. There are all thoughtful citizens, with the need to are, of course, numerous other possibilities. For protect the environment and to improve in other example, dividends on preferred stock might be ways the quality of life. We are also concerned, made tax deductible, as the President has rec­ however, about the vigor of economic recovery ommended, or taxation of dividends that are and the dampening effect of environmental reg­ reinvested in new shares—at the option of the ulations on business activity. Here, too, a mid­ shareholder—might be deferred. These and dle ground is needed. other ways of integrating business and personal Governmental practices and programs affect­ taxes deserve thorough study by the Congress. ing labor markets also have to be reviewed in Another area that needs immediate action is any serious search for noninflationary measures our national energy policy. Uncertainties to reduce unemployment. For example, the created by the delay in adopting legislation on Federal minimum wage law is still pricing many the oil-pricing problem are becoming a serious teenagers out of the job market. At times pro­ obstacle to private economic planning and may grams for unemployment compensation provide increasingly impede the recovery as time goes benefits on such a generous scale that they may on. In formulating a national energy program be blunting incentives to work. Even in today’s it is of course necessary to give attention to environment, with perhaps 9 per cent of the sources of energy besides oil. Shortages of labor force unemployed, there are numerous job natural gas are likely to curtail production in vacancies—perhaps because job seekers are un­ some States this winter, and this problem will aware of the opportunities, or because the skills become more acute in later years if current of the unemployed are not suitable, or for other policies for controlling the price of natural gas reasons. It is hard to believe that better results are not modified. And let us not overlook the could not be achieved with more effective job importance of expanding the rate of construction banks, more realistic training programs, and in the electric utility industry. The President’s other labor market policies. Labor-Management Committee has developed a Indeed, many structural reforms will prove series of recommendations to accomplish this necessary to enhance the prospects for expanded objective that I hope the Congress will weigh employment, while at the same time reducing carefully. the pressures on costs and prices. We need to Among these recommendations is a sugges­ gather the courage to reassess our laws directed tion that environmental restrictions be stretched against restraint of trade by business firms, to out to facilitate the expansion of electric-gen­ reassess the enforcement of these laws, also the erating capacity. Of course, the impact of en­ monopoly of first-class mail by the Post Office, vironmental regulations on the economic activi­ the various restrictions on entry into the profes­ ties of our Nation goes well beyond the electric sions, the effects of the Davis-Bacon Act on utility industry. A good deal of industrial con­ construction wages and employment, the intri­ struction across our land is being held up by cacies of governmental regulation of trans­ environmental regulations and litigation. A sig­ portation, the role of trade unions in the public nificant part of business capital outlays, more­ sector, the effects on consumer prices of the over, is now being channeled into equipment remaining fair trade laws, and other legislation for the abatement of pollution rather than for or practices that impede the competitive expanding industrial capacity. For example, in process. Nor would I rule out the possibility 1974 producers of iron and steel, nonferrous that some form of incomes policy, going beyond metals, and paper devoted more than 20 per cent the legislation governing the Council on Wage of their capital budgets to pollution control. and Price Stability but continuing to rely mainly Regulations with respect to the environment and on voluntary compliance, may yet be of some safety have also been a major factor running benefit in moving our Nation towards the goals up auto prices in recent years and thus putting of full employment and a stable price level. a damper on auto sales and production. What I have tried to suggest in these brief Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 Federal Reserve Bulletin □ August 1975 comments on structural policies is that we can means—has been nullified by the cumulative make better progress in moving toward our force of inflation. national goals by reducing the burden being Our Nation has paid a heavy price during the carried by monetary and fiscal policies. The past year for tolerating inflation and allowing well-meaning citizens who now keep urging it to get out of control. All of us in Government stronger monetary and fiscal stimuli seem to must now work to promote a good recovery in overlook the fact that excessive reliance on such jobs and production; but all of us must also take policies brought on an accelerating inflation great care lest the hard-won gains of the past during the past decade. They overlook the fact year be destroyed by a new round of inflation. that the current recession was caused basically The rise of the consumer price level in June by an inflation that got out of control. And they at an annual rate of more than 9 per cent is also overlook the fact that a large part of the a warning that the menace of inflation is still effort that our Nation has directed during the very much with us. The task facing our country, past decade or longer to improving the lot of therefore, is not only to hasten the process of poor people—through increases in social secu­ economic recovery but also to unwind the infla­ rity benefits, welfare programs, and other tion and lay the basis for a lasting prosperity. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

505 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JUNE 16-17, 19751 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services—which had fallen sharply during the two preceding quarters—had leveled off in the second quarter of 1975 and that the rise in prices had moderated further. Staff projections continued to suggest that real economic activity would expand in the second half of the year and that the rise in prices would continue to slow somewhat further. In May retail sales increased strongly, most likely in response to the disbursement of a large volume of rebates on Federal income tax liabilities for 1974 and to a reduction in current income tax withholdings. Industrial production declined slightly further, as producers and distributors in many industries continued their efforts to liquidate inventories; total business inventories had declined appreciably in both March and April. Nonfarm payroll employment increased in May, after having changed little in April, and total employment advanced for the second consecutive month. Never­ theless, the unemployment rate rose further, from 8.9 to 9.2 per cent, as the civilian labor force continued to grow at a rapid pace. The index of average hourly earnings for private nonfarm pro­ duction workers rebounded in May, after having declined slightly in April, but over the first 5 months of the year the rate of advance in the index was considerably less rapid than the rate during the second half of 1974. Average wholesale prices of industrial com­ modities rose slightly in May—by about as much as over the preceding 2 months—while prices of farm and food products increased moderately further. In April the rise in the consumer price index had picked up, but the average rise over the first 4 months of the year had remained well below the pace during 1974. Staff projections for the second half of 1975 suggested moderate 1This meeting was held over a 2-day period, beginning on the afternoon of June 16. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 Federal Reserve Bulletin □ August 1975 recovery in real output and substantial gains in nominal GNP. It was anticipated that the recovery would be spurred by rapid growth in consumption expenditures in response to the expansive income tax measures; by increases in residential construction; and by a considerable slowing in the rate of business inventory liquidation. On the other hand, it was anticipated that business fixed investment would decline somewhat further in real terms and that, as a result of the recovery in business activity in this country, imports would rise at a faster pace than exports. Since mid-May the average exchange value of the dollar against leading foreign currencies had changed little in relatively light trading. In April the U.S. foreign trade balance remained in surplus; however, the surplus was well below the first-quarter rate, reflecting a substantially lower rate of exports. Banks’ liabilities to foreigners rose more than claims in April, resulting in a small net inflow of funds compared with a large net outflow in the first quarter of the year. Total loans and investments at U.S. commercial banks continued to expand at a slow pace during May. Outstanding loans to business declined markedly further—as did the outstanding volume of com­ mercial paper issued by nonfinancial businesses—in association with inventory liquidation and a continued large volume of cor­ porate financing in the capital market. As in the preceding 3 months, banks added substantially to their holdings of U.S. Government securities. Growth in deposits was exceptionally strong at banks and at nonbank thrift institutions in May, reflecting in part the large volume of income tax rebates disbursed during the month, and Ml5 M2, and M3 all increased substantially. Banks continued to reduce 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 increased by only a small amount. Interest rates in private short-term markets had changed little over the period since mid-May. Market rates on Treasury bills also changed little in the latter part of May, but they declined in early June, partly in response to the seasonal reduction in the supply of bills in prospect for the second half of the month. At the time of this meeting the market rate on 3-month Treasury bills was 4.88 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 507 per cent, compared with 5.11 per cent on the day before the May meeting. Yields on longer-term securities changed little in late May— despite a continued heavy volume of corporate financing—and then declined considerably in early June, in part because the prospective size of Treasury financing through July was not so large as had been expected. Public offerings of corporate bonds expanded to a near-record volume in May, in part because of the marketing of some issues that had been postponed, and a continued large volume was in prospect for June. Offerings of State and local government issues in May and the calendar for June also were heavy. Yields on home mortgages eased in May, after having risen somewhat in April. System open market operations since the May 20 meeting had been guided by the Committee’s decision to seek to maintain about the prevailing money market conditions over the period immedi­ ately ahead, provided that monetary aggregates generally appeared to be growing at rates within acceptable ranges of tolerance. The Federal funds rate, which had been about 5Vs per cent in the days before the May meeting, remained within a range of 5 to 5% per cent. In the second week of June, just a few days before this meeting, available data suggested that over the May-June period both Mx and M2 would grow at rates well above the specified ranges of tolerance. Consequently, the System sought some tight­ ening of bank reserve and money market conditions, and the Federal funds rate rose into a range of 5XA to 5Vi per cent. At this meeting the Committee reviewed the 12-month ranges for rates of growth in the monetary and credit aggregates on the average over the period from March 1975 to March 1976 that it had specified 2 months earlier at the April meeting. The members agreed that it would be consistent with the Committee’s broad economic objectives if growth within the same percentage ranges were to be realized on the average over the 12-month period to June 1976 from the currently estimated levels for June 1975.2 The ranges were as follows: Mu 5 to IV2 per cent; M2, 8V2 to 10V2 2At its meeting on July 15 the Committee decided that the percentage ranges should apply to the period from the second quarter of 1975 to the second quarter of 1976, rather than from June to June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 Federal Reserve Bulletin □ August 1975 per cent; M3, 10 to 12 per cent; and the bank credit proxy, 6Vi to 9xh per cent. As before, 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 subse­ quent 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. In considering current policy, the Committee took note of a staff analysis suggesting that in the months ahead strong expansion in transactions demands for money was likely if the substantial gains projected in nominal GNP materialized. If monetary growth was to be appropriately constrained, it appeared probable that some tightening of bank reserve and money market conditions would need to develop over the weeks immediately ahead. The staff analysis also suggested that, even with some tightening in bank reserve and money market conditions, the monetary aggre­ gates would grow at relatively rapid rates in the June-July period, in large part because of the temporary effects of income tax rebates and, in the second half of June, of one-time payments to social security recipients. It was anticipated, however, that private short­ term credit demands would remain weak, as business firms contin­ ued to liquidate inventories and to issue longer-term securities in large volume. In the course of the Committee’s discussion a number of mem­ bers expressed uncertainty about the extent to which rapid growth in the monetary aggregates was attributable to transitory rather than to fundamental forces affecting the demand for money. No members advocated aggressive operations at this time to tighten bank reserve and money market conditions, and there was some sentiment for continuing about the prevailing money market conditions in the period until the next meeting on the grounds that additional data might indicate that growth in the monetary aggregates was in the process of subsiding. However, some members favored a modest tightening in the period immediately ahead in order to restrain growth in the monetary aggregates, and others were prepared to accept some tightening if it proved to be necessary for that purpose. At the conclusion of the discussion, the Committee decided that growth in Mx and M2 over the June-July period at annual rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 509 within ranges of tolerance of 6V2 to 9V2 per cent and 9 to 12 per cent, respectively, would be acceptable. The members concluded that such growth rates would be likely to involve growth in reserves available to support private nonbank deposits (RPD’s) within a range of 5 to 8 per cent. They agreed that in the period until the next meeting the weekly average Federal funds rate might be expected to vary in an orderly fashion within a range of 5 to 6 per cent, if necessary, in the course of seeking monetary growth rates within the ranges specified. The members also agreed that, in the conduct of operations, account should be taken of develop­ ments in domestic and international financial markets. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services—after having fallen sharply for two quar­ ters—has leveled off in the current quarter. In May retail sales strengthened considerably. Industrial production declined slightly further, but total employment advanced for the second consecutive month. The unemployment rate increased again, from 8.9 to 9.2 per cent, as the civilian labor force rose substantially further. The rise in average wholesale prices of industrial commodities continued to be slow; prices of farm and food products increased moderately further. 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 changed little since mid-May. The U.S. foreign trade balance continued in substantial surplus in April, but at a rate much reduced from the first quarter. After large net outflows in the first quarter, there was a small net inflow of funds through banks in April, as liabilities to foreigners rose more than claims. Growth in Mx, Af2, and M3 was substantial in May, reflecting in part large Federal income tax rebates deposited at both banks and nonbank thrift institutions. Business demands for short-term credit both at banks and in the commercial paper market remained unusually weak, while demands in the long-term market continued very strong. Market interest rates in general changed little during the latter part of May, but since then rates in longer-term markets and on Treasury bills have declined. Mortgage rates have eased over the past month. In light of the foregoing developments, it is the policy of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 Federal Reserve Bulletin □ August 1975 Federal Open Market Committee to foster financial conditions con­ ducive to stimulating economic recovery, while resisting inflationary pressures and working toward equilibrium in the country’s balance of payments. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Baughman, Eastburn, Holland, MacLaury, Mayo, Mitchell, \yallich, and Debs. Votes against this action: Messrs. Bucher and Coldwell. Absent and not voting: Mr. Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) Messrs. Bucher and Coldwell dissented from this action because they believed that a tightening in money market conditions and the associated increase in short-term interest rates would be prema­ ture at this time, and they preferred to specify a lower range for the Federal funds rate than that adopted by the Committee. Both stressed the influence of the tax rebates and payments to recipients of social security benefits in bringing about high rates of monetary growth. Mr. Bucher, in addition, thought that primary emphasis should be given to promoting recovery in economic activity, because he believed that as yet there were no clear indications of the forces that would lead the recovery and because he saw no threat of intensified inflationary pressures so long as rates of resource use remained comparatively low. Subsequent to the meeting, on June 26, the available data suggested that the annual rates of growth in Mx and M2 in June would be much more rapid than had appeared likely at the time of the meeting and that growth in both aggregates over the June-July period, therefore, would be substantially above the upper limits of the ranges of tolerance established by the Committee. In the statement week ending June 25 the Federal funds rate averaged 5.72 per cent; in the latest 3 days it had been close to 6 per cent. The System Account Manager was planning to aim for a rate of 6 per cent, the upper limit of the specified range of tolerance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 511 Against that background and to give the Manager some flexi­ bility, Chairman Burns recommended on June 26 that the upper limit of the funds rate constraint be raised to 6xk per cent, on the understanding that the additional leeway would be used only in the event that another week’s data confirmed excessive strength in the monetary aggregates. Members of the Committee—with the exception of Messrs. Bucher, Holland, and Mitchell—concurred in the Chairman’s recommendation. 2. Amendment to Authorization for Domestic Open Market Operations The Committee amended paragraph 1(c) of the authorization for domestic open market operations to authorize the Federal Reserve Bank of New York to arrange repurchase agreements (RP’s) directly with bank dealers. Prior to this action, the Bank had been authorized to arrange RP’s with nonbank dealers only. With this amendment, paragraph 1(c) read as follows: (c) To buy U.S. Government securities, obligations that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, and prime bankers’ acceptances of the types authorized for purchase under 1(b) above, from dealers for the account of the Federal Reserve Bank of New York under agreements for repurchase of such securities, obligations, or accept­ ances in 15 calendar days or less, at rates that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, after applying reasonable limitations on the volume of agreements with individual dealers; provided that in the event Government securities or agency issues covered by any such agreement are not repurchased by the dealer pursuant to the agree­ ment or a renewal thereof, they shall be sold in the market or transferred to the System Open Market Account; and provided further that in the event bankers’ acceptances covered by any such agreement are not repurchased by the seller, they shall continue to be held by the Federal Reserve Bank or shall be sold in the open market. Votes for this action: Messrs. Burns, Baughman, Bucher, Coldwell, Eastburn, Holland, MacLaury, Mayo, Mitchell, Wallich, and Debs. Votes against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 Federal Reserve Bulletin □ August 1975 Absent and not voting:.Mr. Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) This action was taken on recommendation of a staff committee, which advised that it would usefully broaden the scope of partici­ pation in System RP’s. The staff committee also reported that experience with determination of interest rates on RP’s by compet­ itive bidding—provided for by action of the Committee in April 1972—had been satisfactory. 3. Revision of Guidelines for Operations in Federal Agency Issues On recommendation of the Manager, the Committee amended number 5 of the guidelines for the conduct of System operations in Federal agency issues to increase the limit on System holdings of any one issue at any one time from 20 to 30 per cent of the amount of the issue outstanding, and to increase the limit on System holdings of the issues of any one agency from 10 to 15 per cent of the amount of outstanding issues of that agency. The Manager had advised that Desk operations in agency issues might soon be inhibited by the existing limits; that flexibility for operations in agency issues might prove especially useful; and that experience gained over the past 3x/2 years of operations in agency issues had shown that the market was capable of absorbing a larger volume of System purchases without undue impact on yields or other market relationships. Votes for this action: Messrs. Burns, Baughman, Bucher, Coldwell, Eastburn, MacLaury, Mayo, Mitchell, Wallich, and Debs. Vote against this action: Mr. Holland. Absent and not voting: Mr. Hayes. (Mr. Debs voted as alternate for Mr. Hayes.) Mr. Holland dissented from this action because he was concerned that to date the System had bought but rarely had sold agency issues and because the limits on System holdings of agency issues might more appropriately be raised at a stage of the business cycle when the volume of new agency issues being marketed was large. 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

513 Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS (2) Notwithstanding the provisions of subpara­ graph (1) of this paragraph, no withdrawal shall The Board of Governors has amended its Regu­ be permitted by a member bank to be made from lation Q to permit member banks to offer a service a savings deposit, through payment to the bank for making third party payments through pre-auitself or through transfer of credit to a demand thorized transfers of funds from depositors’ sav­ or other deposit account of the same depositor ings accounts. (other than of interest on the savings deposit) if such payment or transfer is made pursuant to any AMENDMENT TO REGULATION Q advertised plan or any agreement, written or oral which authorizes such payments or transfers of Effective September 2, 1975, section 217.5(c) credit to be made automatically or as a normal of Regulation Q is amended to read as follows: practice in order to cover checks or drafts drawn Section 217.5— by the depositor upon the bank. Withdrawal of Savings Deposits (3) The provisions of this paragraph do not apply to deposits subject to negotiable orders of withdrawal authorized by Federal law to be issued in the States of Massachusetts and New Hamp­ (c) Manner of payment of savings deposits. shire. (1) Subject to the provisions of subparagraphs (2) and (3) of this paragraph, a member bank may sfc 5(5 He s|c permit withdrawals to be made from a savings deposit only through payment7 to the depositor TRUTH IN LENDING (but not to any other person whether or not acting for the depositor) except The Board of Governors has amended its Regu­ lation Z to implement requirements of Title IV of Pub. L. 93-495. (vii) Pursuant to nontransferable withdrawal orders or authorizations received from a depositor by a member bank for the payment of amounts AMENDMENTS TO REGULATION Z from such deposits to third parties, including the Effective August 8, 1975, Regulation Z is bank (except as prohibited by subparagraph 2), amended as follows: periodically or otherwise. Any such withdrawal order or authorization that may be honored as a 1. Sections 226.1(b) (1) and (c) are amended withdrawal request for payment to a third party to read as follows: may, if so authorized by the third party, be hon­ ored as a transfer to an account of such third party. Section 226.1— Any form for such withdrawal order or authori­ Authority, Scope, Purpose, etc. zation shall contain language in boldface type of reasonable size to the effect that it is not negotiable or transferable. (b) Administrative enforcement. (1) As set forth more fully in section 108 of the Act, admin­ 7 Payment from a savings deposit or presentation of a pass­ istrative enforcement of the Act and this Part with book may be made over the counter, through the mails, or respect to certain creditors and credit card issuers otherwise. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 Federal Reserve Bulletin □ August 1975 is assigned to the Comptroller of the Currency, 3. Sections 226.7(a)(1) and (b)(9) are amended Board of Directors of the Federal Deposit Insur­ to read as follows: ance Corporation, Federal Home Loan Bank Board (acting directly or through the Federal Savings and Loan Insurance Corporation), Administrator of the Section 226.7—Open End National Credit Union Administration, Civil Credit Accounts—Specific Disclosures Aeronautics Board, Secretary of Agriculture, Farm (a) *** Credit Administration, and Board of Governors of (1) The conditions under which a finance charge the Federal Reserve System. may be imposed, including an explanation of the time period, if any, within which any credit ex­ He * * * * tended may be paid without incurring a finance (c) Penalties and liabilities. Section 112 of the charge, except that the creditor may, at his option Act provides criminal liability for willful and and without disclosure, refrain from imposing such knowing failure to comply with any requirement finance charge even though payment is received imposed under the Act and this Part. Section 134 after the termination of such time period. provides for criminal liability for certain fraudulent activities related to credit cards. Section 130 pro­ vides for civil liability in individual or class actions (b) *** for any creditor who fails to comply with any (9) The closing date of the billing cycle and requirement imposed under Chapter 2 or Chapter the outstanding balance in the account on that date, 4 of the Act and the corresponding provisions of using the term “new balance,” accompanied by this Part, provides a defense for creditors comply­ the statement of the date by which, or the period, ing in good faith with the provisions of the Part if any, within which payment must be made to or any interpretation thereof by the Board, and avoid additional finance charges, except that the provides that a multiple failure to disclose in creditor may, at his option and without disclosure, connection with a single account shall permit but refrain from imposing such additional finance a single recovery. Section 115 provides for civil charges even though payment is received after liability for an assignee of an original creditor such date or termination of such period. where the original creditor has violated the disclo­ sure requirements and such violation is apparent on the face of the instrument assigned, unless the assignment is involuntary. Pursuant to Section 108 4. Sections 226.9(g)(5) is amended and of the Act, violations of the Act or this Part 226.9(h) is added to read as follows: constitute violations of other Federal laws which may provide further penalties. Section 226.9—Right to Rescind Certain Transactions * * * * * 2. Section 226.3(e) is added to read as follows: (g) *** Section 226.3—Exempted Transactions (5) Any transaction in which an agency of a State is the creditor. (e) Agricultural credit transactions. Credit (h) Time limit for unexpired right of rescis­ transactions primarily for agricultural purposes, sion. In the event the creditor fails to deliver to including real property transactions, in which the the customer the disclosures required by this sec­ amount financed13 exceeds $25,000 or in which tion or the other material disclosures required by the transaction is pursuant to an express written this Part, a customer’s right to rescind a transaction commitment by the creditor to extend credit in pursuant to this section shall expire the earlier of excess of $25,000. (1) three years after the date of consummation of the transaction, or (2) the date the customer * * * * * transfers all his interest, both equitable and legal, in the property. laFor this purpose, the amount financed is the amount which is required to be disclosed under § 226.8(c)(7), or (d)(1), as * * * * * applicable, or would be so required if the transaction were subject to this Part. 5. Section 226.10(f) is added to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 515 Section 226.10—Advertising Credit Terms AMENDMENTS TO RULES REGARDING * * * * * DELEGATION OF AUTHORITY (f) Credit payable in more than four instal­ Section 265.1a—Specific ments; no identified finance charge. Any adver­ Functions Delegated to Board Members tisement to aid, promote, or assist directly or indirectly an extension of consumer credit repaya­ 1. Effective July 31, 1975, paragraphs 1 through ble by agreement in more than four instalments 5 of section 265.1a(a) are amended by inserting shall, unless a specific finance charge is or may the words “or disapprove” after the words “to be imposed, state clearly and conspicuously: “The approve” in each paragraph. cost of credit is included in the price quoted for 2. Paragraphs 6 through 11 are added to section the goods and services.” 265.1a(a) to read as follows: (а) The Committee on Federal Reserve Bank * * * * * Activities, consisting of at least three members of the Board designated by the Chairman, is author­ 6. Section 226.13(i) is added to read as follows: ized, to act upon matters as set forth in this section pursuant to the twenty-second paragraph of sec­ Section 226.13—Credit tions 4 and ll(j) of the Federal Reserve Act (12 Cards—Issuance and Liability U.S.C. 307 and 248(j)) and subject to such general guidelines as may be prescribed by the Board. With respect to any approval action taken by the Committee pursuant to authority delegated herein (i) Business use of credit cards. If 10 or more involving a controversial matter, a policy consid­ credit cards are issued by one card issuer to a eration, or an expenditure of funds exceeding single business or other organization for use by $500,000, the Committee will inform the Board its employees, nothing in this section prohibits the by memo before giving notice of its approval to card issuer from agreeing by contract with such the Reserve Bank. For a period of three days, any business or other organization as to liability for member of the Board may request that the matter unauthorized use of any such credit cards without be scheduled for review by the Board. The Com­ regard to the provisions of this section, but in no mittee is authorized: case may any business or other organization or card issuer impose liability on any employee of * * * * * such business or other organization with respect to unauthorized use of such credit card except in (б) To approve or disapprove specific Reserve accordance with, and subject to, the other liability Bank proposals to acquire land for current or future limitations of this section. building purposes, provided that the Board has previously authorized the general Reserve Bank expansion or building program for which the land is sought and provided that each proposed land RULES REGARDING acquisition requires commitment of no more than DELEGATION OF AUTHORITY one million dollars ($1,000,000). (7) To approve or disapprove: (i) Reserve Bank The Board of Governors has amended its Rules studies, analyses and similar commitments for a Regarding Delegation of Authority to delegate to Reserve Bank building or expansion program at the Committee on Federal Reserve Bank Activities a stage after the general Reserve Bank building certain responsibilities with respect to supervision or expansion program has been approved by the of Federal Reserve Bank land acquisition, con­ Board and prior to the Board decision to permit struction programs, financial planning and control, the Reserve Bank to accept bids and award con­ purchase of computer equipment and examination tracts, (ii) additional construction costs of a new and operations review. In addition, the Board has Bank or Branch building in excess of costs origi­ amended its previous delegation of authority to the nally approved by the Board provided such addi­ Committee to make explicit the Committee’s au­ tional costs do not exceed the 5 per cent contin­ thority to disapprove as well as to approve certain gency portion of the Board-approved budget, (iii) Federal Reserve Bank expenditures. proposed remodeling or renovation of existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 Federal Reserve Bulletin □ August 1975 Bank or Branch buildings or additions to such (d) The Director of the Division of Federal buildings where the total cost of such renovation, Reserve Bank Operations (or in his absence the remodeling or additions is in excess of two hun­ Acting Director) is authorized: dred and fifty thousand dollars ($250,000) but not in excess of one million two hundred fifty thousand dollars ($1,250,000). (The initial two hundred (5) To approve or disapprove proposed remod­ fifty thousand dollars ($250,000) may be commit­ eling or renovation of existing Reserve Bank or ted solely by the Director of the Division of Branch buildings or additions to such buildings Federal Reserve Bank Operations pursuant to sec­ where the cost of such remodeling, renovation or tion 265.2(d)(5).) addition will be in excess of one hundred thousand (8) To approve or disapprove supplementary dollars ($100,000), provided that the cost of each budget requests and special incentive programs to project approved by the Director may not be in improve operations or reduce costs, provided that excess of two hundred and fifty thousand dollars the Board has previously approved the requesting ($250,000). Reserve Bank’s budget and provided the supple­ (6) To approve or disapprove supplementary mental request adheres to the Board’s expense budget requests and special incentive programs to guidelines and provided the* amounts approved for improve operations or reduce costs, provided that the System in a fiscal year do not exceed one per the Board has previously approved the budget of cent of the total budget of all the Reserve Banks the requesting Reserve Bank and provided that the in the System, as approved by the Board. (The supplemental request adheres to the Board’s gen­ amount which the Committee may approve is in eral expense guidelines and such guidelines as the addition to any amounts approved by the Director Board may have imposed in approving the Reserve of Federal Reserve Bank Operations pursuant to Bank’s budget and provided that the amount ap­ section 265.2(d)(6) of these Rules.) proved by the Director may not exceed in any (9) To approve or disapprove specific projects budgetary year one hundred thousand dollars proposed in accordance with ongoing System pro­ ($100,000) for each Reserve Bank and seven hun­ grams previously approved by the Board, such as dred and fifty thousand dollars ($750,000) for all the automated clearing house program, provided Reserve Banks in the System. the Committee adheres to the Board’s budgetary (f) Each Federal Reserve Bank is authorized, constraints. as to member banks or other indicated organi­ (10) To approve Reserve Bank purchases of zations headquartered in its district or under subcomputers and other major automation equipment, paragraph (25) of this paragraph as to its officers provided that the staff of the Division of Federal or under subparagraph (33) as to its own facilities: Reserve Bank Operations indicates the return on the investment is adequate to recapture the invest­ ment within 5 years and provided the total capital commitment in the System for such purchases does (33) Under the provisions of sections 3 and 11 (j) not exceed ten million dollars ($10,000,000) an­ of the Federal Reserve Act (12 U.S.C. §§ 521 nually. and 248(j)), to undertake remodeling, renovation (11) To review and approve reports on Federal of or addition to its existing buildings or those Reserve Bank examinations and Federal Reserve of its branches provided the expenditure for such Bank operations reviews provided that issues of purpose does not exceed one hundred thousand unusual import be presented to the Board and dollars ($100,000) within a single budget year. provided that the Committee present an annual summary of Reserve Bank operations and prob­ lems to the Board. The Board has also amended its Rules Regard­ 3. Effective July 31, 1975, sections 265.2(d)(5) ing Delegation of Authority to delegate to the and (6), and 265.2(f)(33) are added to read as Director of the Office of Saver and Consumer follows: Affairs the authority to approve and issue report­ Section 265.2—Specific ing, examination, or inspection materials with Functions Delegated to Board respect to the Board’s responsibilities under the Employees and Federal Reserve Banks Consumer Credit Protection Act, the Securities Exchange Act of 1934, and the Federal Trade Commission Act, to grant State exemptions under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 517 the Consumer Credit Protection Act and Regula­ (а) to issue examination or inspection manuals, tion Z (12 C.F.R. § 226.12), and to conduct registration, report, agreement, and examination certain matters with respect to the Truth in Lending forms, guidelines, instructions or other similar Advisory Committee. materials for use in connection with the adminis­ tration of 4. Effective July 21, 1975 paragraph (h) of (1) Sections 1 through 707 (excluding sections section 265.2 is amended by adding paragraphs 201 through 500) of the Consumer Credit Protec­ (4), (5), and (6) as follows: tion Act (15 U.S.C. §§ 1601-1691(e)), Section 265.2—Specific (2) Sections 7 and 8 of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78(g) and (h)), Functions Delegated to Board (3) Sections 18(f)(l)-(3) of the Federal Trade Employees and to Federal Reserve Banks. Commission Act (Pub. L. 93-637 § 202(a)), and rules and regulations issued thereunder. (5) Pursuant to Sections 123 and 171(b) of the Truth in Lending Act (15 U.S.C. §§ 1633 and (h) The Director of the Office of Saver and 1666(j)) and the Board’s Regulation Z, (12 C.F.R. Consumer Affairs (or in his absence, the Acting § 226.12), to grant, but not to deny or revoke, Director) is authorized: exemptions to States from the requirements of Chapters 2 and 4 of the Truth in Lending Act (15 U.S.C. §§ 1631-1644 and 1666), where State law (4) Pursuant to the provisions of Section 11 (a) imposes substantially similar requirements, and of the Federal Reserve Act (12 U.S.C. § 248(a)), there is adequate provision for enforcement. Section 17(b) of the Securities Exchange Act of (б) Pursuant to Section 110 of the Consumer 1934 (15 U.S.C. § 78(q)), Sections 108(b), Credit Protection Act (15 U.S.C. § 1609), to call 621(c), and 704(b) of the Consumer Credit Pro­ meetings of and consult with the Advisory Com­ tection Act (15 U.S.C. §§ 1607(b), 1681S(b), mittee established under that section, to approve 1691C), and, Section 18(f)(3) of the Federal Trade the agenda for such meetings, and to accept any Commission Act (Pub. L. 93-637 Section 202(a)). resignations from Advisory Committee members. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 Notice of the application, affording opportunity OF BANK HOLDING COMPANY ACT for interested persons to submit comments and views, has been given in accordance with § 3(c) of the Act. The time for filing comments and views Forest Park National Corporation, has expired, and the Board has considered the Forest Park, Illinois application and all comments received in light of Order Denying the factors set forth in § 3(c) of the Act (12 U.S.C. Formation of Bank Holding Company 1842(c)). Applicant, a nonoperating corporation with no Forest Park National Corporation, Forest Park, subsidiaries, was organized for the purpose of Illinois, has applied for the Board’s approval under becoming a bank holding company through acqui­ § 3(a)(1) of the Bank Holding Company Act (12 sition of Bank (deposits of $37.3 million). Bank, U.S.C. 1842(a)(1)) to become a bank holding located approximately 10 miles west of downtown company through acquisition of all of the voting Chicago, is the 131st largest bank in the Chicago shares (less directors’ qualifying shares) of the banking market1 and holds .09 per cent of the total successor by merger to Forest Park National Bank, deposits in the market. (All banking data are as Forest Park, Illinois (“Bank”). The bank into of June 30, 1974). Inasmuch as the proposed which Bank is to be merged has no significance transaction represents a restructuring of the own­ except as a means to facilitate the acquisition of ership of Bank from individuals (who acquired the voting shares of Bank. Accordingly, the pro­ posed acquisition of shares of the successor orga­ nization is treated herein as the proposed acquisi­ 1The Chicago banking market is approximated by Cook tion of the shares of Bank. County, DuPage County, and portions of Lake County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 Federal Reserve Bulletin □ August 1975 control of Bank in 1974) to a corporation owned On the basis of all the circumstances concerning by the same individuals, and since Applicant has this application, the Board concludes that the no present subsidiaries, consummation of the pro­ banking considerations involved in the proposal posal would not eliminate existing or future com­ are adverse with respect to financial and manage­ petition, nor have an adverse effect on any bank rial considerations. Such adverse factors are not in the relevant area. out-weighed by any procompetitive effects or by A principal of Applicant is also a principal of benefits which would result in serving the conven­ First National Corporation of Oak Brook, Oak ience and needs of the community. Accordingly, Brook, Illinois, a one-bank holding company (in it is the Board’s judgment that approval of the formation)2 which proposes to acquire 100 per cent application would not be in the public interest, of First National Bank and Trust Company of Oak and the application should be, and hereby is, Brook, Oak Brook, Illinois (“First National”). denied for the reasons summarized above. First National (deposits of $16.8 million) ranks By order of the Board of Governors, effective as the 227th largest bank in the relevant banking July 2, 1975. market with .04 per cent of total deposits therein. Voting for this action: Governors Bucher, Holland, In view of the relatively small size of the two Wallich, and Cold well. Absent and not voting: Chair­ banks and the large number of competitors in the man Burns and Governor Mitchell. market, it appears that there is no significant com­ (Signed) E. Theodore A llison, petition between First National and Bank. Ac­ [seal] Secretary of the Board. cordingly, based on the foregoing and other facts of record, the Board concludes that competitive considerations are consistent with approval of the Scribner Banshares, Inc., application. Scribner, Nebraska Under the Bank Holding Company Act, the Board is required to take into consideration the Order Denying financial and managerial resources and future Formation of Bank Holding Company prospects of the proposed bank holding company and the bank to be acquired. In the exercise of Scribner Banshares, Inc., Scribner, Nebraska, that responsibility, the Board finds that such con­ has applied for the Board’s approval, under § siderations warrant denial of the application. 3(a)(1) of the Bank Holding Company Act (12 In regard to such considerations, it appears that U.S.C. 1842(a)(1)), of formation of a bank hold­ Bank’s presently marginal capital position may be ing company through acquisition of 96.7 per cent further weakened as a result of Applicant’s inten­ or more of the voting shares of Scribner Bank, tion to take out substantial dividends from Bank Scribner, Nebraska (“Bank”).1 Applicant has also during the coming years. Such a dividend policy applied, pursuant to § 4(c)(8) of the Act (12 flows from the substantial debt in excess of $1 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the million which has been incurred by the principals Board’s Regulation Y, for permission to retain of Applicant as a result of their purchase of Bank’s Scribner Insurance Agency (“Agency”), a com­ stock. The dividend policy currently in effect as pany that engages in the activities of a general well as that proposed involves levels of pay-out insurance agency in a community with a popula­ which are inconsistent with the earnings retention tion not exceeding 5,000. SuchL activities have needed to maintain acceptable capital funds in been determined by the Board to be closely related Bank. Accordingly, in the Board’s view, the above to banking (12 C.F.R. 225.4(a)(9)(iii)(a)). factors reflect adversely on financial and manage­ Notice of receipt of these applications, affording rial considerations as they relate to Applicant and an opportunity for interested persons to submit Bank and warrant denial of the application. comments and views, has been given in accord­ The proposed formation represents merely a ance with §§3 and 4 of the Act (40 Fed. Reg. restructuring of the ownership of Bank with no 2625 (1975)). The time for filing comments and changes in Bank’s operations or the services of­ views has expired, and the Board has considered fered to customers. Accordingly, considerations the applications and all comments received in the relating to the convenience and needs of the com­ light of the factors set forth in § 3(c) of the Act munity to be served lend no weight toward ap­ (12 U.S.C. 1842(c)) and the considerations speci­ proval of the application. fied in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)), lrThe Board of Governors also considered today the applica­ 2By Order dated April 24, 1975, the Board approved the tion of Winner Banshares, Inc., Winner, South Dakota, to application of First National Corporation of Oak Brook to acquire Farmers State Bank, Winner, South Dakota, which become a bank holding company. involves some of the same principal shareholders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 519 Applicant was formed for the purposes of be­ services offered to customers. Consequently, con­ coming a bank holding company through the ac­ siderations relating to the convenience and needs quisition of Bank and of operating a general in­ of the community to be served lend no weight surance agency. Bank, with deposits of about toward approval of the application. $10.3 million,2 is the only bank in Scribner, Ne­ On the basis of all the circumstances concerning braska, and is the fourth largest of 7 banks in the this application, the Board concludes that the relevant banking market,3 controlling approxi­ banking considerations involved in the proposal mately 8.9 per cent of the total deposits in com­ present adverse factors bearing on the financial and mercial banks in the market. Certain principals of managerial resources of Applicant. Such adverse Applicant are also involved as shareholders, factors are not outweighed by any procompetitive directors and/or officers, in other one-bank holding effects or by benefits which would result in serving companies located in Nebraska, Iowa, and South the convenience and needs of the community. Dakota. The closest subsidiary bank of these bank Accordingly, it is the Board’s judgment that ap­ holding companies is 53 miles from Bank, and proval of the application would not be in the public none operates in the relevant market area. Ac­ interest and that the application to become a bank cordingly, since the proposal represents a restruc­ holding company should be, and is hereby, de­ turing of the ownership of Bank from individuals nied.4 to a corporation owned by the same individuals, By order of the Board of Governors, effective consummation of the proposal would have no July 28, 1975. significantly adverse effects on competition in any Voting for this action: Governors Holland, Wallich, relevant area. Accordingly, the Board concludes Coldwell, and Jackson. Absent and not voting: Chair­ that competitive considerations are consistent with man Burns and Governors Mitchell and Bucher. approval of the application. (Signed) E. Theodore A llison, The Board has indicated on previous occasions [seal] Secretary of the Board. that it believes that a holding company should provide a source of financial and managerial strength to its subsidiary bank(s), and that every 4ln view of the Board’s action with respect to the application proposed acquisition or formation will be closely to become a bank holding company, consideration of the § examined with such considerations in mind. In this 4(c)(8) application to retain the insurance activities becomes moot. connection, the Board notes that Applicant will incur a substantial debt as a result of the acquisi­ tion of Bank. Applicant proposes to service such debt over an 11-year period with income from Winner Banshares, Inc., Agency and dividends from Bank consistently Winner, South Dakota exceeding 50 per cent of Bank’s net income, Order Denying thereby limiting Bank’s ability to meet any un­ Formation of Bank Holding Company foreseen financial problems that might arise. Ac­ cordingly, the Board views the sizable acquisition Winner Banshares, Inc., Winner, South Dakota, debt to be incurred by Applicant as an adverse has applied for the Board’s approval, under § factor in the consideration of the subject proposal. 3(a)(1) of the Bank Holding Company Act (12 Turning to managerial considerations, it appears U.S.C. 1842(a)(1)), of formation of a bank hold­ that certain of the banks in which Applicant’s ing company through acquisition of 94.4 per cent principals are involved have experienced deterio­ or more of the voting shares of Farmers State rating capital positions. In addition, demands that Bank, Winner, South Dakota (“Bank”).1 some of the principals appear to have placed upon Notice of the application, affording opportunity the resources of other banks under their control for interested persons to submit comments and have detracted from the overall financial condition views, has been given in accordance with § 3(b) of some of these banks. The Board believes, of the Act. The time for filing comments and views therefore, that managerial considerations weigh for has expired, and the Board has considered the denial of the application. application and all comments received in light of The proposed formation represents merely a the factors set forth in § 3(c) of the Act (12 U.S.C. restructuring of the ownership of Bank with no 1842(c)). significant changes in Bank’s operations or the *The Board of Governors also considered today the applica­ 2All banking data are as of June 30, 1974. tion of Scribner Banshares, Inc., Scribner, Nebraska to acquire 3The relevant banking market is approximated by Dodge Scribner Bank and to retain an insurance agency. These appli­ County excluding the City of Dodge. cations involve some of the same principal shareholders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 Federal Reserve Bulletin □ August 1975 Applicant, a newly-organized corporation, was On the basis of all the circumstances concerning formed for the purpose of becoming a bank hold­ this application, the Board concludes that the ing company through the acquisition of Bank. banking considerations involved in the proposal Bank (deposits of $29.8 million) is the thirteenth present adverse factors bearing on the financial and largest banking organization in South Dakota and managerial resources of Applicant. Such adverse holds about 1.5 per cent of the total commercial factors are not outweighed by any procompetitive bank deposits in the State.2 With a total of four effects or by benefits which would result in serving offices in the relevant market (approximated by the convenience and needs of the community. Tripp, Todd and Mellette Counties), Bank controls Accordingly, it is the Board’s judgment that ap­ 58.4 per cent of the total market deposits and ranks proval of the application would not be in the public as the largest of the three banking organizations interest and that the application to become a bank in the market. Certain principals of Applicant are holding company should be, and is hereby, denied. also involved as shareholders, directors and/or By order of the Board of Governors, effective officers, in other banks and one-bank holding July 28, 1975. companies located in Nebraska, Iowa, and South Voting for this action: Governors Holland, Wallich, Dakota. Inasmuch as this proposal represents a Coldwell, and Jackson. Absent and not voting: Chair­ restructuring of the existing ownership of Bank, man Burns and Governors Mitchell and Bucher. and since none of the other banks with which (Signed) E. Theodore A llison, Applicant’s principals are involved is located in [seal] Secretary of the Board. the same market as Bank, it appears that consum­ mation of the proposal would not have adverse effects on existing or potential competition. Ac­ Central Bancshares of the South, Inc., cordingly, the Board concludes that competitive Birmingham, Alabama considerations are consistent with approval of the Order Approving Acquisition of Bank application. The Board has indicated on previous occasions Central Bancshares of the South, Inc., Bir­ that it believes that a holding company should mingham, Alabama, a bank holding company provide a source of financial and managerial within the meaning of the Bank Holding Company strength to its subsidiary bank(s), and that every Act, has applied for the Board’s approval under proposed acquisition or formation will be closely § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to examined with such considerations in mind. In this acquire all of the voting shares (less directors’ connection, the Board notes that Applicant will qualifying shares) of Citizens Bank of Tuscaloosa, incur a debt as a result of the acquisition of Bank. National Association, Tuscaloosa, Alabama Applicant proposes to service such debt over a (“Bank”), a proposed new bank. 12-year period through dividends from Bank Notice of the application, affording opportunity averaging about 50 per cent of its net income. In for interested persons to submit comments and the Board’s view, Applicant’s projections appear views, has been given in accordance with § 3(b) somewhat optimistic, and the dividends required of the Act. The time for filing comments and views from Bank to service the debt could result in the has expired, and the Board has considered the impairment of Bank’s overall capital position. application and all comments received, including Accordingly, the Board views the acquisition debt those submitted by numerous independent banks to be incurred by Applicant as an adverse factor throughout Alabama (hereinafter collectively re­ in the consideration of the subject proposal. ferred to as “Protestants”), in light of the factors Turning to managerial considerations, it appears set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). that certain of the banks in which Applicant’s Applicant, the fourth largest banking organi­ principals are involved have experienced deterio­ zation in Alabama, controls nine banks with ag­ rating capital positions. In addition, demands that gregate deposits of $798.5 million, representing some of the principals appear to have placed upon approximately 10 per cent of total deposits in the resources of other banks under their control, commercial banks in the State. (All banking data have detracted from the overall financial condition are as of June 30, 1974, and reflect formations of some of these banks. The Board believes, and acquisitions approved by the Board through therefore, that managerial considerations weigh for June 30, 1975.) Since Bank is a proposed new denial of the application. bank, its acquisition would not increase the con­ centration of banking resources in Alabama nor 2A11 banking data are as of June 30, 1974. change Applicant’s rank in size in the State. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 521 Applicant is seeking to make its initial entry would constitute an illegal branch under State law; into the Tuscaloosa County banking market. There if the Board determines that a violation of State are four banks in the market with the two largest law would result, it is required to disapprove the banks controlling approximately 94 per cent of the transaction. (Whitney National Bank v. Bank of deposits therein. Applicant’s closest subsidiary New Orleans, 323 F.2d 290 (D.C. Cir. 1963), bank is located about 53 miles northeast of Bank rev’d on other grounds, 379 U.S. 411 (1965)). in a separate banking market. It appears that Ap­ However, the facts of record in this case indicate plicant’s acquisition of Bank would not eliminate that Bank will be a separate corporation, with its any existing competition; nor would consumma­ own capital stock and a loan limit based on such tion of the transaction have a substantially adverse capital stock; that Bank will be capitalized with effect on future competition between any of Ap­ funds raised by Applicant through use of its own plicant’s banking subsidiaries and Bank in view capital resources and not with profits or other funds of the distances involved and the Alabama of any other bank; and that Bank’s board of branching laws. On the other hand, Applicant’s directors are, or will be, unaffiliated with any other acquisition of Bank should stimulate competition bank owned by Applicant, will exercise inde­ in the market by introducing an additional banking pendent judgment with respect to the management alternative to compete with the two largest organi­ of Bank, and are, or will be, residents of Tusca­ zations in the market without having adverse ef­ loosa. Accordingly, the Board concludes that Bank fects on any competing banks. On the basis of will not be operated in a unitary fashion with any the facts of record, the Board concludes that the banking subsidiary of Applicant and thus this competitive considerations of the transaction are proposal will not contravene Alabama’s statute consistent with, and lend some weight toward, prohibiting branch banking. Further, the Board approval of the application. concludes that Applicant is a “traditionally recog­ The financial and managerial resources and fu­ nized bank holding company which, with its own ture prospects of Applicant, its subsidiary banks, capital, invests in or buys the stock of banks”, and Bank are satisfactory, particularly in view of Whitney National Bank v. Bank of New Orleans, Applicant’s commitment to inject additional equity supra. capital into one of its subsidiary banks. These Finally, some Protestants have argued that Reg­ considerations relating to financial factors are con­ ulation 13, which was issued by the Alabama State sistent with approval of the application. Bank’s Banking Board, applies to de novo national banks formation and acquisition by Applicant will pro­ as well as de novo State chartered banks and thus vide an alternative source of banking services for the Board is prevented by State law from approv­ customers in the market so that considerations ing the subject application.2 The Board does not relating to the convenience and needs of the com­ agree. National banks are organized and chartered munity to be served lend weight toward approval by the Comptroller of the Currency pursuant to of the application. the provisions of the National Bank Act (12 During the course of its consideration of this U.S.C. §§ 21-27). Pursuant to that authority, the application, the Board has received numerous Comptroller of the Currency issued his preliminary comments from Protestants. These comments charter approval for Bank on January 7, 1975. The contend generally that affiliation of Applicant with Board does not regard Regulation 13 as having Bank would contravene Alabama law prohibiting any legal effect on the chartering of national branch banking (Alabama Code of 1940 (Recomp. banking associations and, therefore, Regulation 13 1958) Title 5, § 125 (1)). In addition, Protestants claim that the subject proposal is prohibited under State law because of Regulation 13, which was 'Some of the Protestants have also requested that the Board hold a hearing on the application. Under § 3(b) of the Act, issued by the Alabama State Banking Board. In the Board is required to hold a hearing only when the primary the Board’s view, however, the objections of supervisor of the bank to be acquired recommends disapproval Protestants are not sufficient to warrant denial of of the application (12 U.S.C. 1842(b)). In this case, the Comptroller of the Currency issued preliminary charter ap­ the subject application.1 proval for Bank on January 7, 1975, and he has not subse­ With regard to the branching issue, the Board quently recommended that the subject application be denied. Thus, there is no statutory requirement that the Board hold has stated that a State’s restrictive branch banking a hearing. Moreover, the Board is of the view that the record laws are not automatically applicable to bank in this case is sufficiently complete to render a decision. holding company operations. In a given case, the 2Regulation 13 reads in relevant part as follows: “RE­ Board examines the facts to determine whether a SOLVED that the Superintendent of Banks be prohibited from approving charters of de novo applications by bank holding particular acquisition by a bank holding company companies.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 Federal Reserve Bulletin □ August 1975 has no effect on the Board’s authority to approve one bank in Idaho and one bank in Wyoming, each Applicant’s application to acquire Bank, a de novo of which was acquired by Applicant prior to the national bank. enactment of the Bank Holding Company Act of On the basis of all facts of record, it is the 1956. Since Bank is a proposed new bank, its Board’s judgment that the transaction would be acquisition by Applicant would not immediately in the public interest and that the application increase Applicant’s share of commercial bank should be approved. Accordingly, the application deposits in Utah. is approved for the reasons summarized above. Bank is to be located in Kaysville, a small The transaction shall not be made (a) before the “bedroom” community situated almost midway thirtieth calendar day following the effective date between Ogden and Salt Lake City. Kaysville, of this Order or (b) later than three months after which is presently served by only one other bank, that date and (c) Citizens Bank of Tuscaloosa, the “Protestant,” is located on the southern National Association, shall be opened for business boundary of the Ogden metropolitan area,2 a mar­ not later than six months after the effective date ket served by ten banks. Applicant’s lead bank of this Order. Each of the periods described in is the largest bank in this market, with a 30.9 per (b) and (c) may be extended for good cause by cent share of total deposits (as of June 30, 1973). the Board or by the Federal Reserve Bank of Since Bank is a new bank, consummation of the Atlanta pursuant to delegated authority. proposal would not eliminate any existing compe­ By order of the Board of Governors, effective tition. Nor does it appear that the transaction July 9, 1975. would have adverse effects on the development Voting for this action: Vice Chairman Mitchell and of competition in the future. Accordingly, com­ Governors Bucher, Holland, and Coldwell. Absent and petitive considerations are regarded by the Board not voting: Chairman Burns and Governor Wallich. as being consistent with approval of the applica­ (Signed) Theodore E. A llison, tion. [seal] Secretary of the Board. The financial and managerial resources and fu­ ture prospects of Applicant and its subsidiaries are First Security Corporation, regarded as satisfactory. Bank, as a proposed new Salt Lake City, Utah bank, has no financial or operating history; how­ ever, its future prospects as a subsidiary of Appli­ Order Approving Acquisition of Bank cant appear favorable. Bank would provide a First Security Corporation, Salt Lake City, source of additional full banking services to the Utah, a bank holding company within the meaning residents of the Kaysville area. Accordingly, con­ of the Bank Holding Company Act, has applied siderations relating to the convenience and needs for the Board’s approval under § 3(a)(3) of the of the community to be served lend some weight Act (12 U.S.C. 1842(a)(3)) to acquire all of the toward approval of the application. voting shares of First Security State Bank of In its consideration of the subject application, Kaysville, Kaysville, Utah. the Board has considered the comments submitted Notice of the application, affording opportunity on behalf of Protestant, a bank located one block for interested persons to submit comments and from the proposed site of Bank. Protestant, a unit views, has been given in accordance with § 3(b) bank with deposits of approximately $17 million, of the Act. The time for filing comments and views contends that Applicant’s acquisition of Bank has expired, and the Board has considered the would lessen competition, restrain trade, and tend application and all comments received, including toward monopoly, without producing any coun­ those submitted on behalf of Barnes Banking tervailing advantage to the convenience and needs Company of Kaysville (“Protestant”), in light of of the citizens of Kaysville. These contentions the factors set forth in § 3(c) of the Act (12 U.S.C. were presented before the Commissioner of Fi­ 1842(c)). nancial Institutions of the State of Utah at a public Applicant, the largest banking organization in hearing during the pendency of the charter appli­ Utah, controls six Utah banks with aggregate de­ cation of Bank.3 In an Order dated August 22, posits of $844.1 million, representing approxi­ 1973, the Commissioner approved the establishmately 28.5 per cent of all commercial bank de­ posits in the State.1 In addition, Applicant controls 2Defined as the Rand-McNally R.M.A. of Ogden, Utah. 3Protestants have submitted to the Board copies of the banking data are as of December 31, 1974, unless otherwise Commissioner’s findings of fact, conclusions of law, and indicated, and reflect holding company formations and acqui­ Order, and the Board has made those materials part of the sitions approved through May 31, 1975. record on which it relied in this matter. 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Law Department 523 ment of Bank, pending approval by the Federal Texas Commerce Bancshares, Inc., Deposit Insurance Corporation of insurance for Houston, Texas Bank’s accounts and approval by the Board of the application herein. Protestant appealed the Com­ Order Approving Acquisition of Banks missioner’s Order to the District Court in and for Texas Commerce Bancshares, Inc., Houston, the Salt Lake County, Utah, which granted a Texas, a bank holding company within the mean­ Motion for Summary Judgment in favor of Appli­ ing of the Bank Holding Company Act, has ap­ cant and Bank on December 11, 1974. Subse­ plied for the Board’s approval, under § 3(a)(3) quently, Protestant appealed the District Court of the Act (12 U.S.C. 1842(a)(3)), to acquire 100 action to the Supreme Court of Utah, which has per cent of the voting shares (less directors’ quali­ not yet rendered its decision on the appeal. fying shares) of the successors by merger to Casa Linda National Bank of Dallas (“Casa Linda In “RESOLVED Board’s opinion, the objection Bank”); Fidelity Bank, National Association of Protestant does not warrant denial of the subject (“Fidelity Bank”); Northwest National Bank of application. The home-office protection laws of Dallas (“Northwest Bank”); Royal National Bank Utah prevent any of Applicant’s existing banks of Dallas (“Royal Bank”); and The Village Bank from establishing branches in Kaysville. Accord­ (National Association) (“Village Bank”), all lo­ ingly, aside from the acquisition of Protestant, the cated in Dallas Texas (collectively referred to as subject proposal represents Applicant’s sole means “Banks”). The banks into which each of Banks of competing directly in the Kaysville community. The establishment of Bank by Applicant should are to be respectively merged have no significance foster competition by introducing a banking alter­ except as means to facilitate acquisition of the voting shares of Banks. Accordingly, the proposed native to Protestant, the only bank in Kaysville. acquisition of the successor organizations is treated Moreover, as a subsidiary of Applicant, Bank will herein as proposed acquisition of Banks. be able to offer a broad range of banking services Notice of the application, affording opportunity to the residents of the area. In the Board’s judg­ for interested persons to submit comments and ment, the benefits likely to be derived from Appli­ cant’s proposal in terms of increased competition views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views and greater convenience and banking services are has expired, and the application and all comments such that approval of the application would be appropriate. Accordingly, it is the Board’s judg­ received have been considered in light of the ment that the proposed transaction would be in factors set forth in § 3(c) of the Act (12 U.S.C. the public interest and that the application should 1842(c)). Applicant, the third largest banking organization be approved. in Texas, controls 24 banks with aggregate depos­ On the basis of the record, the application is its of approximately $2.5 billion, representing 6.3 approved for the reasons summarized above. The per cent of total deposits in commercial banks in transaction shall not be made (a) before the thir­ the State.1 Acquisition of Banks (aggregate de­ tieth calendar day following the effective date of posits of $45.1 million) would increase Appli­ this Order, nor (b) later than three months after cant’s share of commercial bank deposits in Texas that date, and (c) First Security State Bank of by less than 0.2 of one per cent, and would have Kaysville, Kaysville, Utah shall be opened for no appreciable effect upon the concentration of business not later than six months after the effec­ banking resources in Texas. tive date of this Order. Each of the periods de­ Casa Linda Bank, the 68th largest of the 105 scribed in (b) and (c) may be extended for good banking organizations in the Dallas banking mar­ cause by the Board, or by the Federal Reserve ket,2 holds deposits of about $11.1 million, or 0.1 Bank of San Francisco pursuant to delegated au­ of one per cent of total market deposits. Fidelity thority. Bank is the 94th largest banking organization in By order of the Board of Governors, effective the market and holds approximately $3 million in July 9, 1975. Voting for this action: Vice Chairman Mitchell and *A11 banking data are as of June 30, 1974, and reflect holding Governors Bucher, Holland, Wallich, and Coldwell. company formations and acquisitions approved through June Absent and not voting: Chairman Burns. 15, 1975. (Signed) Theodore E. Allison, 2The Dallas banking market, the relevant geographic market for purposes of analyzing the competitive effects of the subject [seal] Secretary of the Board. proposals, is approximated by the Dallas RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 Federal Reserve Bulletin □ August 1975 deposits, representing less than 0.1 of one per cent be served lend weight toward approval of the of market deposits. Northwest Bank is the mar­ proposal. It has been determined that the proposed ket’s 48th largest banking organization and holds acquisition would be in the public interest and that about $18 million in deposits, which represents the application should be approved. 0.2 of one per cent of total market deposits. Royal On the basis of the record, the applications are Bank, the 76th largest banking organization in the approved for the reasons summarized above. The market, holds deposits of approximately $8.4 mil­ transactions shall not be made (a) before the thir­ lion, representing less than 0.1 per cent of total tieth calendar day following the effective date of market deposits. Village Bank is the 85th largest this Order of (b) later than three months after the banking organization in the market and holds ap­ effective date of this Order, unless such period proximately $4.9 million in deposits, or less than is extended for good cause by the Board, or by 0.1 of one per cent of total market deposits. the Federal Reserve Bank of Dallas pursuant to Applicant, the sixth largest banking organization delegated authority. in the Dallas market, controls two suburban banks By order of the Secretary of the Board, acting which are located near Dallas and which hold pursuant to delegated authority for the Board of aggregate deposits of approximately $152.4 mil­ Governors, effective July 31, 1975. lion, representing 1.9 per cent of total deposits (Signed) E. in commercial banks in the market. The subsidiary Theodore A llison, bank of Applicant clos'est to one of Banks is [seal] Secretary of the Board. separated by a distance of more than eight miles. Each of Banks is relatively small and retailoriented and serves a predominantly residential ORDER UNDER SECTION 4 area. The resultant highly localized nature of OF BANK HOLDING COMPANY ACT Banks’ respective service areas severely limits effective competition among the five banks. In First Hawaiian, Inc., view of the distances involved, the limited service Honolulu, Hawaii areas of each of Banks and the number of inter­ vening banks, there does not appear to be any Order Approving meaningful competition existing between Appli­ Acquisition of Hawaii Thrift & Loan, Inc. cant’s present subsidiaries and any of Banks. These same factors of distance and intervening First Hawaiian, Inc., Honolulu, Hawaii, a bank banks, as well as Texas’ prohibitive branching holding company within the meaning of the Bank laws, appear to foreclose the development of Holding Company Act, has applied for the Board’s significant competition in the future. Accordingly, approval, under section 4(c)(8) of the Act and on the basis of the record, it is concluded that section 225.4(b)(2) of the Board’s Regulation Y, consummation of the proposed acquisitions would to acquire, through a newly-formed wholly-owned not have significant adverse effects on existing or subsidiary, certain assets and to assume certain potential competition in the relevant banking mar­ liabilities of Hawaii Thrift & Loan, Inc., Hono­ ket. lulu, Hawaii (“HT&L”), a company that operates Considerations relating to the financial and as an industrial loan company under Chapter 408 managerial resources and future prospects of Ap­ of the Hawaii Revised Statutes and does not accept plicant, its subsidiaries, and Banks are regarded demand deposits. Such activity has been deter­ as generally satisfactory and consistent with ap­ mined by the Board to be closely related to bank­ proval, particularly in view of Applicant’s pro­ ing (12 CFR § 225.4(a)(2)). jected addition of $240,000 to the equity capital Notice of the application, affording opportunity structure of each one of Banks through retention for interested persons to submit comments and of the capital of the respective interim banks. views on the public interest factors, has been duly Affiliation with Applicant should enable Banks to published (40 Federal Register 25042 (1975)). expand and improve the banking services offered The time for filing comments and views has ex­ to their customers. In particular, Applicant pro­ pired, and the Board has considered all comments poses to expand banking hours, reduce minimum received, including those of the Governor of deposits on certain types of savings accounts, and Hawaii, the Hawaii Consumer Finance Associa­ expand the range of trust services. Accordingly, tion, and Mr. Ezau Hoogs in the light of the public these considerations relating to the convenience interest factors set forth in section 4(c)(8) of the and needs of the residents of the communities to Act (12 U.S.C. § 1843(c)(8)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 525 Applicant, the second largest banking organi­ competition with one another, for others the risk zation in the State of Hawaii, controls First Ha­ exposure may be understood.4 It is clear, also, that waiian Bank (“Bank”) with total deposits of ap­ Bank and HT&L, but for the present financial proximately $813 million, representing approxi­ condition of HT&L, would be direct competitors mately 33 per cent of total deposits in the eight in commercial, consumer, and real estate loan commercial banks located in Hawaii.1 Bank is markets in Hawaii. (However, HT&L, in view of Applicant’s only subsidiary. its present financial condition, is no longer an HT&L, as an industrial loan company, accepts effective competitor in those markets and accord­ thrift deposits in the form of investment certificates ingly, consummation of the proposed acquisition and debentures, and with the proceeds of such would not carry an adverse effect on competition, deposits makes real estate, consumer, and com­ existing or potential, in any market.) mercial loans. As of April 30, 1975, HT&L had Hawaiian governmental authorities have ex­ total assets of $96.8 million. Applicant would pressed the view that, absent consummation of the acquire a substantial portion of these assets. proposed acquisition, a serious danger would exist HT&L has experienced consistent net operating that HT&L would fail. The consequences of fail­ losses since 1970. On May 21, 1975, it was ure of HT&L would be serious financial loss to announced that HT&L’s auditor withdrew its 1972 some 30,000 uninsured investment certificate and and 1973 audit reports and declined to issue an debenture holders, as well as possible liquidity audit report for 1974 in view of certain transactions problems at other Hawaiian financial institutions, between HT&L, on the one hand, and its principal possible harm to certificate holders in such institu­ shareholder and affiliates of that shareholder, on tions, and serious consequences to Hawaii’s econ­ the other.2 That announcement caused substantial omy, according to the Governor of that State. withdrawals of funds from HT&L by investment These consequences would be avoided by con­ certificate holders and HT&L has been unable to summation of the proposed acquisition. borrow, other than from Applicant, to meet com­ Based upon the foregoing and other consid­ mitments or to operate properly as an industrial erations reflected in the record, the Board has loan company. The Governor of the State of determined, in accordance with the provisions of Hawaii has, by telegram, requested that the Board section 4(c)(8) that the public benefits that can be expedite its consideration of the instant application reasonably expected from consummation of the and favors approval for the protection of the ap­ proposed acquisition outweigh the adverse com­ proximately 30,000 holders of investment petitive effects of such consummation. Accord­ certificates and debentures issued by HT&L. ingly, the application is hereby approved. This HT&L operates eleven offices in the State of determination is subject to the conditions set forth Hawaii, including eight on the island of Oahu,3 in section 225.4(c) of Regulation Y and to the one on the island of Kauai, one on the island of Board’s authority to require such modification or Maui, and one on the island of Hawaii. Bank termination of the activities of a holding company operates branch offices on each of these islands, or any of its subsidiaries as the Board finds neces­ from which offices it accepts savings and time sary to assure compliance with the provisions and deposits and makes commercial, consumer, and purposes of the Act and the Board’s regulations real estate loans. The investment certificates and and orders issued thereunder, or to prevent evasion debentures issued by HT&L are similar to deposits thereof. accepted by Bank, but HT&L’s investment The transaction shall be consummated not later certificates and debentures are uninsured and in­ than three months after the effective date of this volve considerably higher risk than deposits ac­ Order, unless such period is extended for good cepted by Bank (and, accordingly, the certificates and debentures, on the one hand, and deposits of Bank, on the other, may not be reasonable substi­ 4In any event, consummation would eliminate potential tutes for one another.) While for some “deposi­ competition between Applicant and HT&L. Applicant has made efforts to form an industrial loan company in Hawaii, tors”, it is clear that Bank and HT&L are in direct but those efforts were unsuccessful due to the refusal of the Hawaii Director of Regulatory Institutions to grant the neces­ sary license. It is estimated that HT&L held, on June 30, 1974, 28 per cent of investment certificates issued by Hawaiian XA11 banking data are as of December 31, 1974. industrial loan companies. Thus, but for HT&L’s present 2That shareholder and its affiliates are neither parties to, nor financial condition, the instant application would raise the subject of the instant application. significant problems related to potential competition in Hawai­ ian markets for non-insured lendable funds, apart from its effect 3The opening of a ninth office on Oahu is pending. in Hawaiian loan markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin □ August 1975 cause by the Board or by the Federal Reserve Bank By letter dated January 6, 1975, Mr. Anthony of San Francisco, pursuant to authority hereby R. Martin-Trigona, Chicago, Illinois, requested delegated. that the Board hold a formal hearing on the Mellon By order of the Board of Governors, effective application.1 His request, which was accompanied June 18, 1975. neither by a statement summarizing the evidence Voting for this action: Chairman Burns and Gover­ he proposed to submit or elicit nor by a statement nors Mitchell, Holland, Wallich, and Coldwell. Absent why the matter could not be resolved without a and not voting: Governor Bucher. hearing, stated his belief “that the Board is well (Signed) Theodore E. A llison, aware of my standing as a party in interest.” In [seal] Secretary of the Board. response to Applicant’s challenge to his standing, Mr. Martin-Trigona requested the Board to incor­ porate by reference in the record of this proceeding ORDERS FOR HEARING certain earlier submissions to the Board made by him with respect to his standing to oppose the Mellon National Corporation, application of The Chase Manhattan Corporation, Pittsburgh, Pennsylvania New York, N.Y., to acquire Dial Financial Cor­ poration, Des Moines, Iowa. Order for Hearing On May 30, 1975, following receipt of several Mellon National Corporation, Pittsburgh, Penn­ further communications from both Mellon and Mr. sylvania, has applied, pursuant to § 4(c)(8) of the Martin-Trigona with respect to the standing issue, Bank Holding Company Act (12 U.S.C. § and because Mr. Martin-Trigona had expressed a 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ desire to supplement his earlier submission on ulation Y (12 C.F.R. § 225.4(b)(2)) for permission standing in the Chase-Dial matter, the Board’s to acquire 100 per cent of the voting shares of General Counsel notified Mellon and Mr. Martin- Local Loan Company, Chicago, Illinois. Notice Trigona that he would hold an informal hearing of the application was published between Sep­ on June 12, 1975, to afford them the opportunity tember 20 and 27, 1974 and on October 3, 11 to put before the Board any additional facts they and 12, 1974, in newspapers of general circulation deemed relevant on the standing question. Appli­ in each of the communities in which there is cant and its counsel, as well as Mr. Martin-Trigona located one or more of the 124 offices of Local and his counsel, participated in this proceeding, Loan Company located in the United States to be and Mr. Martin-Trigona has taken the position that retained by Applicant if the proposed transaction he has carried his burden of establishing his is consummated. The subsidiaries of Local Loan standing to obtain a formal hearing in this case. Company operate offices in the States of Califor­ A brief review of the history of Mr. Martinnia, Colorado, Florida, Illinois, Indiana, Ken­ Trigona’s efforts to establish his standing in Board tucky, Minnesota, Nebraska, New York, Oregon, proceedings under the Bank Holding Company Act Washington, and Wisconsin. is necessary to put the present controversy in By notice published in the Federal Register on perspective. December 6, 1974 (39 Federal Register 42719 In November 1972, Mr. Martin-Trigona pro­ (1974)), the Board invited interested persons to tested the application of Bank America Corpora­ express their views on the question whether con­ tion, San Francisco, California (“BankAmer­ summation of the proposal can “reasonably be ica”), for permission to acquire GAC Finance, expected to produce benefits to the public, such Inc., Allentown, Pennsylvania. In response to an as greater convenience, increased competition, or inquiry from the Board asking whether he claimed gains in efficiency, that outweigh possible adverse status as a “party in interest” and, if so, request­ effects, such as undue concentration of resources, ing that he state the basis for that claim, Mr. decreased or unfair competition, conflicts of inter­ Martin-Trigona responded that his claim was made ests, or unsound banking practices.” The notice “on the basis of my undivided interest in the further provided that any request for a hearing on public interest, as a citizen of the United States this question should be accompanied by a state­ and the State of Illinois, and as a person who ment summarizing the evidence the person re­ questing the hearing proposes to submit or to elicit at the hearing and a statement of the reasons why 1 Although Mr. Martin-Trignoa’s letter stated that “I would this matter should not be resolved without a hear­ again renew my demand for formal hearings on this applica­ tion,” no previous request for a hearing on the Mellon appli­ ing. cation had been made by him. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 527 stands to be injured by economic concentration.” and that “we should be operational on a pilot basis In addition, he asserted an interest in “meaningful some time in June or early July, and move into and rigorous enforcement” of the antitrust laws. full scale operations as soon as is practicable.” By letter of June 26, 1973, the Board rejected In July 1974, he told the Board that he was waiting Mr. Martin-Trigona’s claim of party-in-interest until the prime rate fell below 9 per cent, and that status in that case because, inter alia, he had not “if we had a prime rate of 9 per cent, I think shown what he was within the class sought to be we would be operational by the 1st of August.” protected by the Bank Holding Company Act. In On October 31, 1974, the Board denied Chase’s July 1973, the Board denied BankAmerica’s ap­ application without a hearing and, accordingly, plication, but Bank America requested recon­ without resolving the question of Mr. Martinsideration. In August 1973, Mr. Martin-Trigona Trigona’s standing. reaffirmed his opposition to the application and In the present case, Mr. Martin-Trigona con­ again requested a hearing. However, he submitted tinues to allege that he intends to enter the con­ no additional material with respect to his claim sumer finance business in Chicago, and that he of standing and the Board denied his renewed therefore has standing as a potential competitor request for a hearing for the reasons it had stated of Mellon. While interest rates have decreased in its June 26 letter. Mr. Martin-Trigona petitioned well below the 9 per cent level that he referred the U. S. Court of Appeals for the District of to in the Chase-Dial matter, he now states that Columbia Circuit for review of the Board’s denial his uncertainty as to the “regulatory climate” and of his request. In his brief to the Court of Appeals, the general economy is deterring his entry. He Mr. Martin-Trigona, admitting that the matter was avers that “I’ve got the money to go, and I can “not of record,” asked the Court to consider that start lending and earning a return on my assets “petitioner himself is a potential entrant in the virtually instantly.” However, he states he is financial services industry and has been studying waiting “to determine what the position of the an entry in the market himself for sometime in Board will be” before he proceeds, and that “if; 1974.” He alleged that these plans “will shortly the Board proceeds to approve willy nilly acquisi­ be coming to fruition” and he described his entry tions of loan companies by bank holding compa­ as “imminent.” On review, the Board’s conclu­ nies,” the chances he will proceed with entry “are sion as to his standing was affirmed by the Court marginal, at best.” He further states that he has of Appeals. Martin-Trigona v. Federal Reserve been “postponing our entry until the economy Board, 509 F.2d 363 (D.C. Cir. 1975) (the appears to be moving out of the recession and until “BankAmerica-GAC case”).2 the demand for funds moves to the positive side.” In March 1974, as we have noted, Mr. Martin- We take as our present standard for determining Trigona protested a renewed application of The questions of standing in cases such as this § 105 Chase Manhattan Corporation (“Chase”) to ac­ of the Bank Holding Company Act Amendments quire Dial Financial Corporation,3 and sought of 1970 (12 U.S.C. § 1850), and the recent deci­ leave to intervene on the ground that he was then sion of the U. S. Court of Appeals for the District “in the process of entering the financial services of Columbia Circuit in the BankAmerica-GAC industry himself and, accordingly, is within the case. class of business competitors and potential com­ Section 105 expressly provides that in a case petitors who are guaranteed a right and standing in which a bank holding company applies for to intervene” by 12 U.S.C. § 1850. Elaborating authority to acquire a company engaged in a non­ on this request in April 1974, he stated that he banking activity had taken a number of preparatory steps to enter the business,4 that he was “prepared to commit “a party who would become a competitor of the applicant more funds in the next 60 days to begin operations, or subsidiary thereof by virtue of the applicant’s . . . acquisi­ tion, . . . shall have the right to be a party in interest” 2In 1970, the same court affirmed a decision of the Federal Communications Commission holding that Mr. Martin-Trigona Specifically, he stated he had surveyed relevant state laws, lacked standing to petition that agency for revocation of the appropriate corporate forms, and possible names; formed cor­ licenses of the three major New York television stations. porations and ordered a corporate logo; inquired of banks as Martin-Trigona v. Federal Comminucations Commission, 432 to lines of credit; investigated banks to perform computer F.2d 682 (D.C. Cir. 1970). bookkeeping and lock box services; raised a “modest initial 3Chase’s first application to acquire Dial, which was denied cash investment”; and had discussions with a “possible full­ in January 1974, was not opposed by Mr. Martin-Trigona. time branch manager for the first office.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 Federal Reserve Bulletin □ August 1975 in the Board’s proceeding with respect to the finance company. He has alleged no facts whatso­ application. Mr. Martin-Trigona is admittedly not ever that he even remotely indicated how he would a present competitor of either Mellon of Local personally be adversely affected as a “consumer” Loan and he clearly would not become such “by by Mellon’s proposed acquisition of Local Loan. virtue of” the proposed acquisition. However, in Although he makes the conclusory claims that the the BankAmerica-GAC case, the Court pointed effect of this acquisition would be “to force rates out that a “potential competitor” would be within higher,” and that an additional source of credit the “zone of interest” protected by § 4 of the would be provided if Mellon were encouraged to Bank Holding Company Act “if that potential enter the finance business de novo, rather than competitor may realistically be viewed as a possi­ through an acquisition of an existing company, the ble entrant” into the relevant market. Further­ Board does not consider these allegations to con­ more, although it reserved judgment on the issue, stitute the type of factual allegations of particu­ it suggested that a consumer of the services offered larized injury called for in the test establishment by the applicant or the acquired firm would simi­ by the Court of Appeals. larly be considered to be within that “zone of A somewhat different question is presented, interest.” In either event, the Court stated that, however, with respect to Mr. Martin-Trigona’s in order to establish standing in a case such as claim as a “potential competitor.” Under the this, the claimant must satisfy three salient prin­ approach dictated by the Court of Appeals in the ciples: first, he must allege that the proposed BankAmerica-GAC case, there are four elements acquisition would cause him “injury in fact, eco­ to be considered in determining whether a party nomic or otherwise”; second, the alleged “injury claiming standing as a potential competitor has in fact” must be arguably within the zone of established the necessary intention and interests protected or regulated by the statute; and, preparedness to warrant a conclusion that he has third, the claimant “may not merely allege the a protectable “business” interest: (1) his back­ existance of an injury,” but must go beyond and ground and experience in the prospective business, allege “facts showing that he is himself adversely (2) the affirmative action he has taken to engage affected” by the proposed acquisition. The Court in the proposed business, (3) his financial ability further indicated that the test of whether a potential to purchase the necessary equipment and facilities competitor or consumer has standing based upon to engage in the business, and (4) the consumma­ allegations of injury resulting from the anticom­ tion of contracts relating to the proposed business. petitive effects of an acquisition is whether he See Waldron v. British Petroleum Co., 231 F. would have standing under the Clayton Act (15 Supp. 72, 81-82 (S.D.N.Y. 1964).6 U.S.C. § 12 et seq.) to maintain a private antitrust Applying these tests, the Board has substantial action with respect to the proposed acquisition.5 question whether Mr. Martin-Trigona can realisti­ (509 F.2d at 365-66). cally be viewed as a potential competitor. He has Assessing Mr. Martin-Trigona’s belated claim not alleged or proved that he has background or of standing as a “consumer” on the basis of the experience in the consumer finance business; he standards articulated by the Court of Appeals, we has not consummated any contracts relating to the have little difficulty in concluding that he has not business; he has not obtained or applied for a State established standing as a consumer. Mr. Martin- license to engage in the business. While he claims Trigona admittedly has never borrowed from Local to have made certain “surveys” and taken certain Loan Company, although he states that he “might very preliminary steps, such as the formation of at some point in the future do so.” At the informal shell corporations, and while he claims to have hearing before the General Counsel he was not made “inquiries” of banks as to lines of credit, responsive in answering questions about his past the Board has doubts that these steps constitute “consumer” borrowings, and he flatly refused, meaningful “affirmative action” and that his mere “simply on the basis of relevance,” to state when “inquiries” of banks establish his financial ability in the past he had borrowed from any consumer to engage in the business. Moreover, his long delay in actually entering the business since the first time he informed the Board of his intention to do so, and the unpersuasiveness of his explana­ 5Section 4 of the Clayton Act (15 U.S.C. § 15) permits private damage actions by any person who has been injured in his business or property by reason of any conduct of the defendant violative of the antitrust laws. Section 16 of the Clayton Act (15 U.S.C. § 26) authorizes suits for injuctions 6The Waldron case was expressly relied upon by the Court by any person threatened with injury by such conduct. of Appeals in the BankAmerica case. 509 F.2d at 366 n.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 529 tion for this delay, strongly suggest that his claim tive Law Judge, now retired, in Room 1202 of of “potential competitor” status has been ad­ the Board Building, Constitution Avenue between vanced for the purpose of clothing himself with 20th and 21st Streets, Washington, D.C. 20551. standing in Board proceedings rather than as a It is further ordered, that the issue to be con­ result of a bona fide intention to enter the consumer sidered as said hearing is whether the proposed finance business. acquisition can reasonably be expected to produce In short, there is reason to be skeptical about benefits to the public, such as greater convenience, Mr. Martin-Trigona’s claims, and the Board be­ increased competition, or gains in efficiency that lieves that the record in this matter would support outweigh possible adverse effects, such as undue a conclusion that he should not, in the Court of concentration of resources, decreased or unfair Appeals’ words, “realistically be viewed as a competition, conflicts of interest, or unsound possible entrant” into the consumer finance busi­ banking practices.8 ness. However, in the event a reviewing court By order of the Board of Governors, July 28, were to take a different review of the standing 1975. issues the likely relief would be a remand for a Voting for this action: Governors Bucher, Wallich, hearing. Because of its reluctance to foreclose the and Jackson. Voting against this action: Governors parties prematurely from making full submissions Holland and Coldwell. Absent and not voting: Chairman on the standing issue in this case the Board has Burns and Governor Mitchell. permitted the argument to carry on for a period (Signed) E. Theodore A llison, of several months, and the Board is hesitant at [seal] Secretary of the Board. this stage of the proceedings to infect this case with possible procedural error, however remote that possibility may be, that would in the long Dissenting Opinion of run cause far more substantial delay in the final Governors Holland and Coldwell resolution of this matter. Accordingly, the Board We share the view that Mr. Martin-Trigona’s has determined not to decide the question as to claim to be a potential entrant into the consumer Mr. Martin-Trigona’s standing as a potential com­ finance business is not creditable, but having petitor in this case, but nevertheless to hold a reached that view we would not further delay this hearing on the merits of Mellon’s application and matter by holding a hearing. to permit Mr. Martin-Trigona to participate in that His long delay in actually entering the business hearing.7 and his weak explanations for the delay, compel For the foregoing reasons, it is hereby ordered the inference that he has little real intention of that a public hearing be held with respect to the entering this business. For the Board to order a application of Mellon National Corporation, Pitts­ hearing under these circumstances is in our opinion burgh, Pennsylvania, pursuant to § 4(c)(8) of the simply to countenance an abuse of its procedures, Bank Holding Company Act (12 U.S.C. § which were designed to protect the public interest. 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ The public interest is served by reasonably prompt ulation Y (12 C.F.R. § 225.4(b)(2)), for permis­ decision-making by a regulatory agency, and that sion to acquire 100 per cent of the voting shares also is a factor to be weighed in the balance, in of Local Loan Co., Chicago, Illinois. The hearing our judgment, in deciding to what extremes the will commence at 10:00 a.m., September 3, 1975, provision of pre-decision opportunities for presen­ before Phillip J. LaMacchia, former Administratation of arguments should be pushed. It should be stressed that a determination that Mr. Martin-Trigona lacks standing by no means forecloses him from bringing relevant matters to 7In light of his past expressions of interest in participating in Board proceedings, we recognize that the question of Mr. the attention of the Board. Although he has not Martin-Trigona’s standing may again be raised in future appli­ seen fit to submit anything with respect to the cation proceedings. To the extent that he continues to claim standing as a potential entrant into the consumer finance busi­ ness, the Board will, in any such future case, expect to be presented with credible evidence that the intention he first expressed in this regard in April 1974, has been meaningfully 8In view of the Board’s decision to hold a hearing in this furthered by the taking of concrete steps to enter that business. matter and to afford Mr. Martin-Trigona the same opportunity Of course, whether or not Mr. Martin-Trigona is determined to participate that he would have had if he had established to have sufficient standing to entitle him to a formal hearing his standing, the question of standing will no longer be con­ and to party-in-interest status, the opportunity is always avail­ sidered to be an issue to be litigated in this proceeding before able to him to make a timely submission of facts and arguments the Board, and the hearing will be limited to the merits of in written form. the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 Federal Reserve Bulletin □ August 1975 merits of the Mellon application, despite repeated pursuant to a decision by the United States Court invitations to do so, our procedures offer him of Appeals for the Ninth Circuit, on the petition ample opportunity to make written submissions of Patagonia Corporation, Tucson, Arizona, that, contesting the facts upon which the application is on or before June 30, 1968, Pima Savings and premised and to present us with additional facts, Loan Association, Tucson, Arizona was a subsid­ expert opinion or legal argument of his own. The iary of Patagonia Corporation, as defined in section Board is interested in informed decision-making, 2 (d)(3) of the Bank Holding Company Act (12 and it is interested in receiving the views of both U.S.C. 1841(d)(3)). Pursuant to that Board Order competitors and consumers on matters coming (40 Federal Register 30537), Philip J. LaMacchia, before it under the Bank Holding Company Act. former Administrative Law Judge, now retired, We would have welcomed any such contribution was appointed as the Presiding Officer to conduct that Mr. Martin-Trigona might have made on the the hearing in accordance with the Board’s Rules issues presented by cases such as this. Information of Practice for Formal Hearings (12 C.F.R. Part and arguments submitted by all parties will be fully 263). weighed by the Board in seeking to decide the The hearing will commence at 10:00 a.m. on net public benefits in this case, as is mandated September 30, 1975 in Tucson, Arizona, at the by the statute. Federal Building, 301 West Congress Street. The hearing will be open to the public. Patagonia Corporation, By order of the Secretary of the Board of Tucson, Arizona Governors, acting pursuant to delegated authority from the Board of Governors, effective July 30, Order for Hearing 1975. On July 11, 1975, the Board of Governors of (Signed) E. Theodore A llison, the Federal Reserve System ordered a hearing, [seal] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE ORDERS APPROVED BY THE BOARD OF GOVERNORS During June or July 1975, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDER 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 North Florida Bancshares, The Bay National and 7/18/75 40 F.R. 31287 Inc., Panama City, Florida Trust Co. and The First 7/25/75 National Bank, both in Panama City, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 531 ORDER 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 Mountain Banks, Ltd., Fort Collins National 7/28/75 40 F.R. 33074 Colorado Springs, Colorado Bank, Fort Collins, 8/6/75 Colorado ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT- APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Allied Bancshares, Inc., Allied Life Insurance 7/9/75 40 F.R. 30326 Houston, Texas Company of Texas, 7/18/75 Houston, Texas The Central Bancorporation, The Shawnee Life Insurance 7/25/75 40 F.R. 32794 Inc., Cincinnati, Ohio Company, Phoenix, Arizona 8/4/75 ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT— APPLICATIONS TO FORM BANK HOLDING COMPANY AND ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Effective Register Applicant Bank(s) (or activity) date citation Citizens State Bancorp, Citizens State Sale of 6/27/75 40 F.R. 28872 Inc., Manhattan, Bank & Trust credit life, 7/9/75 Kansas Co., Manhattan, credit accident, Kansas and health insurance FOB, Corp., Belleville, First National Illinois State 7/18/75 40 F.R. 31285 Indiana Bank of Belle­ Trust Company, 7/25/75 ville, Belleville, East St. Louis, Illinois Illinois ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATION FOR FORMATION OF BANK HOLDING COMPANY—AND DETERMINATION UNDER SECTION 2(g)(3) OF BANK HOLDING COMPANY ACT Board action Federal (effective) Register Applicant Bank(s) date) citation Mercantile National Mercantile National 6/2/75 40 F.R. 28676 Corporation, Dallas, Bank at Dallas, 6/8/75 Texas Dallas, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 Federal Reserve Bulletin □ August 1975 ORDERS APPROVED BY THE SECRETARY OF THE BOARD During July 1975, applications were approved by the Secretary of the Board under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Kansas State Bancshares, Kansas State Bank 7/21/75 40 F.R. 31286 Inc., Manhattan, Kansas of Manhattan, 7/25/75 Manhattan, Kansas The Landmands Corporation, The Landmands National 7/1/75 40 F.R. 28874 Kimballton, Iowa Bank of Kimballton, 7/9/75 Kimballton, Iowa 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 First International Banc­ First International 7/31/75 40 F.R. 33493 shares, Inc., Dallas Bank in El Paso 8/8/75 Texas El Paso, Texas Manufacturers National Bay City Bank & Trust 7/21/75 40 F.R. 31286 Corporation, Detroit, Company, Bay City, 7/25/75 Michigan Michigan Texas Commerce Bancshares, Casa Linda National 7/31/75 40 F.R. 33495 Inc., Houston, Texas Bank of Dallas; Fidelity 8/8/75 Bank, National Association; Northwest National Bank of Dallas; Royal National Bank of Dallas; and The Village Bank (National Association), all located in Dallas, Texas ORDERS APPROVED BY FEDERAL RESERVE BANKS During July 1975, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 533 ORDER 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 Butte State Company, Butte State Bank, Kansas City 7/3/75 40 F.R. 30158 Butte, Nebraska Butte, Nebraska 7/17/75 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 CleveTrust Corporation, The City Bank, Cleveland 7/25/75 40 F.R. 33071 Cleveland, Ohio Kent, Ohio 8/6/75 Winters National Cor­ Euclid National Cleveland 7/17/75 40 F.R. 31288 poration, Dayton, Ohio Bank, Euclid, 7/25/75 Ohio First Banc Group, Inc., Commonwealth St. Louis 7/24/75 40 F.R. 33072 Creve Coeur, Missouri Bank, Wentzville, 8/6/75 Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 Announcements ANALYSES OF vided to the House Banking Committee by the staff of the Board of Governors and the Federal Reserve SYSTEM EXPENDITURES Banks. These expenditures were identified under The Board of Governors of the Federal Reserve strict auditing and control procedures that have System on August 4, 1975, sent to the Congress been in effect within the System for many years. two analyses on various items of expenditures made by the Federal Reserve System during the NEW BILL-PAYING SERVICE calendar year 1974. The analyses were sent to the chairman and The Board of Governors of the Federal Reserve ranking members of the House Banking, Cur­ System has authorized member banks to offer a rency, and Housing Committee in response to a bill-paying service to their customers through the staff report issued by the Subcommittee on Do­ preauthorized transfer of funds from the cus­ mestic Monetary Policy covering 1974 expendi­ tomer’s savings account, effective September 2. tures of the System and a report by the full Prior to this action, a bill-paying service of this committee on H.R. 7590, a bill that would provide type could be made only for the payment of the for an audit of the Federal Reserve by the General principal, interest, or other charges related to a Accounting Office. real estate loan or mortgage. Expenditures by the System during 1974 were The new authorization, in the form of an consistent with provisions of the Federal Reserve amendment to the Board’s Regulation Q governing Act that authorize the Board of Directors of each the payment of interest on deposits, permits a Reserve Bank to formulate operating policies under savings depositor to authorize the transfer of funds the general supervision of the Board. to third parties for payments of any type, except There were only a few cases where an expense bank overdrafts. item seemed questionable to the Board, and for The amendment as adopted was substantially the such items action has been taken to avoid a recur­ same as proposed by the Board on April 7, with rence. three modifications: In transmitting the analyses to the Congress, —It specifies that transfers from savings ac­ Board Chairman Arthur F. Burns said: counts may not be made to cover overdrafts or the use of a checking account line of credit. The Board rejects categorically the Com­ —The amendment makes it clear that it does mittee’s apparent judgment that Federal Re­ not permit a member bank to agree to transfer serve expenditures have grown at an exces­ sive rate. Any responsible analysis of the funds automatically—that is, without specific in­ System’s expenditures would show that in­ structions—from a customer’s savings account to creases have been reasonable in light of the the customer’s checking account. System’s rapidly growing workload, the in­ —The amendment indicates that withdrawal creased responsibilities imposed by Con­ gress, and the rise in the cost of doing orders or authorizations for payment to third par­ business. As just one example, the average ties may be received by a member bank only from salary of officers within the System rose at a depositor. an average annual rate of 5.3 per cent be­ The Board had previously invited public com­ tween 1964 and 1974; this is well below the ment on proposed arrangements for access to Fed­ annual average increase for employees in the Federal civil service. eral Reserve clearing and settlement facilities con­ nected with automated clearing houses. Pending The Board noted that items of expenditure re­ further consideration of this matter, such Federal ported in the congressional documents were pro­ Reserve facilities may not be used to clear the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 535 third-party transfers now authorized from savings Emergency Housing Act of 1975. The Board’s accounts. Rules presently in effect regarding the letter to State member banks, which urged that clearing and settling of negotiable orders of with­ they “review the requirements and objectives of drawal (NOW’s) are not affected by the amend­ the Emergency Housing Act of 1975, together with ment of Regulation Q. the long-term prospects for repayment by delin­ The amendment gives member banks broad, quent borrowers before instituting foreclosure ac­ general authority to design and offer bill-paying tion,” is as follows: services by using funds in savings accounts. The amendment does not, however, specify the form TO THE CHIEF EXECUTIVE OFFICER of such services. The Board therefore offered the OF EACH STATE MEMBER BANK following hypothetical outline of a possible bill- On July 2, 1975, Public Law 94-50 known as the paying service: “Emergency Housing Act of 1975” became ef­ fective. The Act gives the Department of Housing In most cases, a bill-paying service will be and Urban Development standby authority to pro­ based upon a written contract between the vide up to $250 per month assistance to home­ bank and the depositor. . . . The transfer owners who are unable to make full mortgage . . . may be accomplished by means of an internal bank transaction or by sending a payments because of a substantial reduction in bank check to the transferee or the trans­ income, as a result of involuntary unemployment, feree’s bank. or under-employment due to adverse economic conditions, provided certain stipulated require­ The depositor will give the bank the names ments are met. The assistance may take the form of those organizations or individuals to whom funds are to be transferred, indicating of insurance for loans or advances from financial either the specific amount to be paid to each, institutions or direct loans from HUD on behalf or a maximum amount and the frequency of delinquent mortgagors and is designed to pre­ of payment. . . . vent widespread mortgage foreclosure and dis­ Subsequent additions to the list of trans­ tressed sales of properties. The Department of ferees or changes in instructions may be Housing and Urban Development expects to issue communicated to the bank in person, in Regulations dealing with the Act. In addition to writing or by telephone. the standby authority given HUD, the Act notes the obligations of prudent lenders to exercise re­ If the depositor uses a written withdrawal form to convey transfer instructions to the straint on the foreclosure of residential1 mortgages bank, such form must contain language in where such relief might be available and effective. boldface type that it is not negotiable or The Act also charges the Federal supervisory transferable. agencies, until one year from the date of enact­ ment, with respect to financial institutions subject The System will monitor the development of to their jurisdiction to: (1) “take appropriate ac­ bill-paying services, and it is possible that addi­ tion, not inconsistent with laws relating to the tional regulations or guidelines may be issued in safety or soundness of institution or mortgagee, the future. Member banks were advised to main­ as the case may be, to waive or relax limitations tain data on accounts subject to third-party pay­ pertaining to the operations of such institutions or ment authorizations in a manner that will facilitate mortgagees with respect to mortgage delinquencies identification of such deposits for reporting pur­ in order to cause or encourage forbearance in poses. residential mortgage loan foreclosures”, and (2) The Federal Deposit Insurance Corporation has “request each such institution or mortgagee to proposed similar changes in its regulations. notify that Federal supervisory agency, the Secre­ tary of HUD and the mortgagor at least 30 days prior to instituting foreclosure proceedings in con­ LETTER RE: nection with any mortgage loan.” EMERGENCY HOUSING ACT The Board of Governors on August 12, 1975, *For the purposes of the Act, residential mortgages requested the Reserve Banks to send a letter to include loans on 1- to 4-family homes, mobile homes, the chief executive officers of State member banks and single condominium units. In each case, the unit drawing their attention to the provisions of the must be the principal residence of the mortgagor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 Federal Reserve Bulletin □ August 1975 The Federal Reserve, therefore, urges each State Mr. Guenther, formerly Assistant Special Trade member bank to review the requirements and ob­ Representative for Commercial Policy in the Ex­ jectives of the Emergency Housing Act of 1975, ecutive Office of the President, is a cum laude together with the long-term prospects for repay­ graduate of the University of Rochester and has ment by delinquent borrowers before instituting done graduate work at Yale University and Johns foreclosure action. In this connection, the Sys­ Hopkins University. tem’s examiners are being furnished a copy of this The Board has also announced the promotion letter and are being instructed to refrain from of Stanley J. Sigel, Adviser in the Division of criticizing forbearance in residential mortgage loan Research and Statistics, as an Assistant to the foreclosures where such forbearance does not Board in the Office of Managing Director for threaten the safety and soundness of the bank Research and Economic Policy, effective August under examination. 1, 1975. With respect to the legal requirement for notifi­ cation of intent to foreclose on a residential mort­ gage loan, you will be advised in the near future ADMISSION OF STATE BANKS of the specific information which will be required TO MEMBERSHIP IN SYSTEM to fulfill the notification stipulation. Your cooperation in this effort will be appreci­ The following banks were admitted to membership ated. in the Federal Reserve System during the period July 16, 1975, through August 15, 1975: CHANGES IN BOARD STAFF Michigan Troy .............................. Detroit Bank—Troy The Board has announced the appointment of Minnesota Kenneth A. Guenther as Assistant to the Board Victoria ........................ Victoria State Bank in congressional liaison matters, replacing John West Virginia Rippey, who has resigned. Harpers Ferry .......... Bank of Harpers Ferry Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

537 Industrial Production Released for publication August 15 steel was practically unchanged from month-ago levels, but further reductions occurred in the non- Industrial production is estimated to have in­ ferrous metal industries. creased 0.5 per cent in July following a similar rise in June. Increases in July were fairly wide­ spread among consumer goods and nondurable INDUSTRIAL PRODUCTION Seasonally adjusted, ratio scale, 1967= 100 materials. But output of business equipment and 1 140 MATERIALS durable materials decreased further and con­ struction products changed little. The estimated ,-3^/lpRODUC' 's- 1V levels of total industrial production for both June 1 I TOTAL 1 I I I 1 and May were revised upward (0.3 and 0.2, re­ spectively). Among consumer goods, auto production in­ creased 5 per cent further in July and output of appliances, furniture, and other consumer goods continued to rise. Total consumer goods produc­ tion was up about 4 per cent from the March low. Business equipment production declined about 1.5 per cent further in July, bringing the total cutback in those industries to 15 per cent since last Sep­ tember. Output of construction products ap­ parently leveled off in July. Total materials production is estimated to have increased slightly in July following a moderate increase in June. Further rises in output of the textile, paper, and chemical industries and other nondurable materials exceeded continued cutbacks F.R. indexes, seasonally adjusted. Latest figures: July. in durable materials production. Output of iron and *Auto sales and stocks include imports. Seasonally adjusted 1967 = 100 Per cent changes from— Industrial production 1975 April May June1' July'’ Month Year Q1 to ago ago Q2 Total .................................................................................. 109.9 109.8 110.3 110.8 .5 -11.7 -1.4 Products, total .......................................................................... 112.9 113.0 113.5 113.9 .4 - 8.1 - .6 Final products ...................................................................... 112.6 113.2 113.8 114.3 .4 - 6.9 - .3 Consumer goods ............................................................ 119.6 120.6 122.0 123.4 1.1 - 5.1 1.3 Durable goods .......................................................... 107.8 110.2 112.8 115.5 2.4 -12.3 7.4 Nondurable goods ................................................... 124.0 124.5 125.5 126.4 .7 - 2.3 - .6 Business equipment .................................................... 115.4 115.0 114.4 112.7 -1.5 -14.2 -3.8 Intermediate products ...................................................... 113.4 112.4 112.4 112.6 .2 -11.9 - 2.1 Construction products ................................................. 110.1 107.6 106.8 106.8 -16.7 -3.7 Materials ..................................................................................... 105.2 104.6 105.1 105.6 .5 -17.5 -2.7 ^Preliminary. '’Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS GUIDE TO TABULAR PRESENTA­ A 38 Security issues TION ON INSIDE BACK COVER A 41 Business finance A 42 Real estate credit A 45 Consumer credit STATISTICAL RELEASES: REFER­ A 48 Industrial production ENCE ON INSIDE BACK COVER A 50 Business activity A 50 Construction U.S. STATISTICS A 52 Labor force, employment, and unemployment A 2 Member bank reserves, Reserve Bank A 53 Consumer prices credit, and related items A 53 Wholesale prices A 5 Federal funds—Money market banks A 54 National product and income A 6 Reserve Bank interest rates A 56 Flow of funds A 1 Reserve requirements A 8 Maximum interest rates; margin INTERNATIONAL STATISTICS requirements A 9 Open market account A 58 U.S. balance of payments A 10 Federal Reserve Banks A 59 Foreign trade A 11 Bank debits A 59 U.S. reserve assets A 12 Money stock A 60 Gold reserves of central banks and A 13 Bank reserves; bank credit governments A 14 Commercial banks, by classes A 61 International capital transactions A 18 Weekly reporting banks of the United States A 23 Business loans of banks A 74 Open market rates A 24 Demand deposit ownership A 75 Central bank rates A 25 Loan sales by banks A 75 Foreign exchange rates A 25 Open market paper A 26 Interest rates TABLES PUBLISHED PERIODICALLY A 29 Security markets A 29 Stock market credit Banking Offices: A 30 Savings institutions A 76 Number in the United States A 32 Federal finance A 77 Number of par and nonpar A 34 U.S. Government securities A 37 Federally sponsored credit agencies 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 a AUGUST 1975 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities1 Special ury Drawing cur­ Gold Rights rency Held Other stock certificate out­ Bought under Loans Float3 F.R. Totals account stand­ Total out­ repur­ assets4 ing right2 chase agree­ ment Averages of daily figures 1939—Dec.................................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.................................. 2,219 2,219 5 170 2,404 22,759 3*239 1945—Dec.................................. 23,708 23,708 381 652 24,744 20,047 4*322 1950—Dec.................................. 20,345 20,336 9 142 1,117 21,606 22,879 4*629 I960—Dec.................................. 27,248 27,170 78 94 1,665 29,060 17,954 5*396 1969—Dec.................................. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Dec.................................. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.................................. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.................................. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec.................................. 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—July................................. 84,313 83,496 817 3,308 2,267 1,343 91,554 11,567 400 8,905 Aug................................. 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 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 1,294 271 2,046 3,098 95,119 11,620 500 9,536 July?............................... 88,166 87,882 284 261 1,935 3,100 94,168 11,620 500 9,612 Week ending— 1975—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 77 2,132 3,140 93,315 11,620 500 9,538 25......................... 89,859 88,434 1,425 188 1,953 3,165 95,949 11,620 500 9,542 July 2......................... 91,559 88,834 2,725 871 1,887 3,010 98,243 11,620 500 9,573 9......................... 89,020 88,473 547 222 2,260 3,007 95,272 11,620 500 9,569 16......................... 87,497 87,263 234 202 2,131 3,050 93,566 11,620 500 9,618 23 p....................... 87,997 87,850 147 382 1,852 3,125 94,047 11,620 500 9,630 30*....................... 87,868 87,609 259 253 1,432 3,246 93,491 11,620 500 9,641 End of month 1975—May................................ 91,029 88,953 2,076 24 1,811 2,984 96,712 11,620 500 9,669 June................................ 89,895 89,665 230 561 1,791 2,997 95,926 11,620 500 9,687 July2*............................... 86,966 86,966 178 1,220 3,196 92,245 11,620 500 9,647 Wednesday 1975—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 18......................... 89,273 88,167 1,106 374 3,039 3,141 96,508 11,620 500 9,538 25......................... 93,269 88,738 4,531 1,100 2,059 3,070 100,492 11,620 500 9,553 July 2......................... 90,026 89,512 514 272 2,078 2,932 96,000 11,620 500 9,562 9 ....................... 84,483 84,483 80 2,849 3,064 91,162 11,620 500 9,612 16......................... 89,369 87,729 1,640 1,132 2,241 3,076 96,498 11,620 500 9,627 23 p....................... 88,662 87,631 1,031 1,999 2,143 3,222 96,775 11,620 500 9,637 3Qp....................... 88,064 87,112 952 147 1,823 3,238 93,982 11,620 500 9,647 1 Includes Federal agency issues held under repurchase agreements on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10. beginning Dec. 1, 1966, and Federal agency issues bought outright be­ See also note 3. ginning Sept. 29, 1971. 6 Includes certain deposits of domestic nonmember banks and foreign- 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. owned banking institutions held with member banks and redeposited in Govt, securities pledged with F.R. Banks, and excludes (if any), securities full with F.R. Banks in connection with voluntary participation by non­ sold and scheduled to be bought back under matched sale-purchase member institutions in the Federal Reserve System’s program of credit transactions. restraint. 3 Beginning with 1960 reflects a minor change in concept; see Feb. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign 1961 Bulletin, p. 164. agency and branch deposits at F.R. Banks that are associated with margi­ 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. nal reserves are no longer reported. However, deposits voluntarily held liabilities and capital” are shown separately; formerly, they were netted by agencies and branches of foreign banks operating in the United States together and reported as “Other F.R. accounts.” as reserves and Euro-dollar liabilities are reported. 5 Includes industrial loans and acceptances until Aug. 21, 1959, when industrial loan program was discontinued. For holdings of acceptances Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 o 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 Other 3,6 capital4 F.R. rency ury eign Banks and coin 7 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .........................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .........................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .... j...............1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 ..........................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 ..........................1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .........................1969—Dec. 57,013 427 849 145 735 2.265 23,925 5,340 29,265 .........................1970—Dec. 61,060 453 1.926 290 728 2,287 25,653 5,676 31,329 ........................1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 ....................... 1972—Dec. 71,646 323 1,892 406 717 2,942 28,352 6,635 35,068 ....................... 1973—Dec. 74,556 275 2,795 296 773 3,216 30,514 6,824 37,338 .......................1974—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 80,607 355 3,353 272 989 3,191 28,007 6,969 34,976 ......................................June 81,753 359 2,207 269 711 3,135 27,466 7,216 34,682 ......................................July** Week ending— 78,405 307 8,960 232 688 3,141 28,098 7,139 35,237 .................1975—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 27,861 7,076 34,937 ...........................................18 80,685 370 4,224 243 823 3,258 28,008 6,698 34,706 ...........................................25 81,094 366 5,774 274 729 3,323 28,376 7,105 35,481 ...............................July 2 81,898 367 3,393 264 729 3,016 27,294 7,318 34,612 .............................................9 82,164 358 1,198 296 676 3,110 27,502 7,362 34,864 ...........................................16 81,761 345 1,370 240 690 3,147 28,244 6,718 34,962 ...........................................23 v 81,287 364 1,830 262 711 3,237 27,562 7,451 35,013 ...........................................30*> End of month 79,782 373 7,036 310 1,159 3,396 26,445 6,893 33,338 .........................1975—May 81,196 364 5,773 373 701 3.354 25,976 7,105 33,081 .......................................June 81,331 370 2,675 369 686 3.354 25,227 7,548 32,775 ......................................Julyp Wednesday 78,989 330 9,162 257 482 3.080 27,223 7,139 34,362 ...................1975—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 29,891 7,076 36,967 ...........................................18 80.972 370 5,497 294 741 3,452 30,839 6,698 37,537 ...........................................25 81.708 369 5,291 253 765 2,877 26,418 7,105 33,523 ................................July 2 82,372 370 1,381 239 694 3,022 24,817 7,318 32,135 .............................................9 82,193 354 597 224 673 3,193 31,011 7,362 38,373 . .. . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . .. . . . .. . . . .. . ..16 81.709 349 1,333 276 795 3,171 30,899 6,718 37,617 23^ 81,478 370 1,386 284 574 3,339 28,318 7,451 35,769 ...........................................30 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

A 4 BANK RESERVES AND RELATED ITEMS □ AUGUST 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held1 quired sonal ings ings ings ings 1939—Dec.. 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec.. 12,812 9,422 3,390 5 989 295 1,303 1 804 4 1945—Dec.. 16,027 14,536 1,491 334 48 192 14 418 96 1,011 46 1950—Dec.. 17,391 16,364 1,027 142 125 58 8 5 232 50 663 29 1960—Dec.. 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec.. 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—Dec.. 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec.. 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec.. 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec.. 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec.. 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—Dec.. 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Dec.. 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—July., 37,338 37,161 177 3,308 149 45 1,457 19 70 -12 848 125 933 Aug.. 37,029 36,851 178 3,351 165 -58 1,464 6 23 78 860 152 1,004 Sept., 37,076 36,885 191 3,287 139 133 1,662 20 17 -77 792 115 816 O No c v t. . . , 3 3 6 6, ,7 83 9 7 6 3 3 6 6 , , 7 5 0 79 5 2 9 5 1 8 1 1 , , 7 2 9 8 3 5 1 6 1 7 7 -4 -8 9 2 5 5 0 7 2 -1 3 8 8 3 1 6 4 9 3 0 6 5 5 6 6 9 6 1 12 38 2 4 6 4 8 8 6 Dec.. 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—J F a e n b . . . . . . 3 3 5 7 , . 5 4 6 9 5 2 3 3 7 5 , , 5 33 5 3 6 - 2 6 3 4 2 3 1 9 47 0 1 1 0 3 -11 3 9 1 15 3 6 7 -1 1 6 7 1 16 0 -9 4 1 1 2 8 9 7 1 1 4 6 3 2 13 7 1 1 J A M M u p a n a r r e . y . . . . . . . , 3 3 3 3 5 4 4 4 , , . , 7 1 4 9 7 7 3 9 9 6 4 2 3 3 3 3 4 4 5 4 , , , , 4 4 5 0 2 9 1 1 8 3 3 4 2 5 1 - 6 2 4 1 6 8 0 2 1 1 7 0 1 6 1 0 6 0 1 7 9 1 7 - 1 2 5 3 4 8 3 2 2 2 9 2 2 5 0 2 4 - - 2 2 4 2 1 3 7 0 1 1 2 0 4 - 2 8 - 5 1 4 9 6 7 1 2 3 1 1 8 8 3 4 1 1 1 1 1 3 4 3 5 7 2 7 4 2 6 3 3 6 3 5 July?. 34,682 34,687 -5 261 17 -75 54 24 23 -245 60 110 124 Week ending— 1974—July 37,274 36,905 369 3,435 127 9 1,412 111 137 72 878 177 1,008 36,868 36,590 278 2.640 136 90 1,339 1 52 84 432 103 817 37,824 37,840 -16 3,175 150 -75 1,536 26 15 -74 786 107 838 37,417 37,302 115 3.641 156 17 1,538 -41 80 81 1,108 58 915 37,204 37,020 184 3,690 163 33 1,431 1 38 13 1,086 137 1,135 1975—Jan. 1. 37,588 37,011 577 561 24 -8 83 61 223 218 301 260 2 2 1 9 2 5 . .. 3 3 3 3 7 8 8 7 , , , , 2 3 2 2 6 0 1 4 5 7 2 0 3 3 3 3 7 8 7 8 , , , , 1 2 0 0 7 4 7 6 5 9 9 6 - 1 1 1 4 3 8 7 2 7 6 4 6 5 3 1 1 0 9 4 1 9 4 2 1 1 1 1 2 2 0 8 -13 5 2 7 0 1 5 9 3 31 2 3 7 8 6 - - 2 1 7 3 1 1 69 - - - 2 8 2 4 6 9 4 5 1 1 1 0 3 0 3 7 3 8 0 1 1 1 11 3 7 4 1 5 6 0 1 1 1 1 1 6 3 0 5 8 9 6 2 1 1 5 6 9 2 . . .. 3 3 3 34 6 5 6 , , , , 0 1 6 9 0 2 1 7 6 9 8 4 3 3 3 3 6 4 5 4 , , , , 5 4 9 9 7 4 7 6 9 7 0 0 3 1 1 5 9 5 5 5 9 8 9 2 1 2 9 8 9 0 0 1 1 1 1 1 1 0 0 - - 1 3 1 3 5 7 3 14 6 0 - - 2 2 3 2 2 0 3 9 39 -1 - 8 3 5 8 5 4 2 7 1 1 1 5 2 0 1 1 1 1 2 4 9 1 1 5 8 0 6 8 6 7 9 6 9 0 Mar. 1 1 5 9 2 . . . 3 3 3 4 4 4 , , . 7 4 5 9 8 1 5 2 0 3 3 3 4 4 4 , , , 3 2 4 8 5 9 6 2 0 4 2 0 3 2 9 0 0 1 7 6 67 0 0 9 7 6 - 1 1 9 1 2 6 7 2 88 -3 1 7 5 4 -2 9 1 0 0 0 3 1 1 6 9 0 1 1 1 4 1 9 3 3 8 6 4 4 1 3 0 26. 34,819 34,675 144 155 7 54 8 16 44 -12 58 86 45 Apr. 2 . 35,087 34,808 279 51 -30 7 99 8 203 43 1 9 6 . . 3 3 5 4 , , 2 6 9 6 5 3 3 3 4 5 , , 5 0 5 7 2 6 2 11 1 1 9 2 3 2 0 2 6 5 2 -1 1 4 5 -5 3 1 6 7 4 1 8 7 5 2 2 1 3 8 23. 35,249 35,179 70 165 -3 42 16 25 -23 77 80 21 30. 35,495 35,306 189 241 -11 67 1 37 56 71 143 66 May 7. 35,237 34,926 311 34 177 21 -5 118 34 14. 34,517 34,518 -1 17 -106 -26 -17 1 148 16 21. 34,702 34,631 71 121 -33 98 9 -34 2 129 21 28. 34,209 34,045 164 84 53 9 4 -5 54 112 21 June 4. 34.511 34,177 334 84 18 61 19 137 160 23 11. 33,707 33,743 -36 38 -76 -32 11 -55 2 127 25 18. 34,937 34,603 334 77 80 49 12 69 173 28 25. 34,706 34,615 91 188 19 97 -4 5 38 71 53 July 2...... 35,481 35,085 396 871 57 189 39 117 468 183 214 9........... 34,612 34,479 133 222 18 -20 -20 90 155 132 16........... 34,864 34,791 73 202 -72 78 2 54 6 16 137 54 23p........ 34,962 34,693 269 382 90 151 33 50 -90 47 73 134 30p........ 35,013 34,718 295 253 68 63 -14 91 102 162 1 Beginning with week ending Nov. 15, 1972, includes $450 million of for reserve-requirement purposes has been based on size of bank (net reserve deficiencies on which F.R. Banks are allowed to waive penalties demand deposits of more than $400 million), as described in the Bulletin for a transition period in connection with bank adaptation to Regulation J for July 1972, p. 626. Categories shown here as “Large” and “All other” as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies parallel the previous “Reserve city” and “Country” categories, respectively included are (beginning with first statement week of quarter): Ql, $279 (hence the series are continuous over time). million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning 1974, Ql, $67 million; Q2, $58 million. Transition period ended after Note.—Monthly and weekly data are averages of daily figures within second quarter, 1974. For weeks for which figures are preliminary, figures the month or week, respectively. by class of bank do not add to the total because adjusted data by class are Borrowings at F.R. Banks: Based on closing figures. not available. Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­ 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks ing by F.R. Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 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 dealers 3 from at F.R. Federal deficit required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1975—June 1 4 1. . . . . . . . . . . . . . . . . . . . . . 123 4 6 1 1 3 1 1 7 4 . , 3 0 4 6 7 6 - - 1 1 4 7 , , 0 35 0 5 5 1 8 12 9 . . 8 0 2 1 2 9 , , 2 7 2 4 7 5 5 4, , 8 6 8 7 1 9 4 5 , , 4 1 7 6 7 6 1 1 7 4 , , 7 5 5 7 1 9 5 4 1 0 3 4 4 3 , , 5 1 9 9 7 8 5 6 3 4 3 9 4 2 . . 0 5 0 4 5 8 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 July 2........... 210 503 13,626 -13,919 86.6 20,100 6,474 4,847 15,253 1,627 2,139 629 1,511 9........... 121 58 16,779 -16,717 106.5 22,688 5,909 5,310 17,378 599 2,957 542 2,415 16........... -31 132 17.347 -17,510 109.1 22,263 4,916 4,671 17,592 244 3,083 601 2,483 23........... 69 205 14,396 -14,532 92.2 18,962 4,566 4,375 14,587 191 2,195 664 1,531 30........... 200 1 13,290 -13,091 83.4 18,494 5,204 4,550 13,945 655 1,616 641 975 8 in New York City 1975—June 4........... 17 4,665 -4,709 72.7 5,570 906 906 4,665 1,393 241 1,152 11........... -55 6,343 -6,399 103.0 7,110 767 560 6,550 206 1,671 220 1,451 18........... 19 5,977 -6,006 91.7 6,773 797 742 6,031 54 1,774 181 1,593 25........... 37 5,953 -6,013 95.2 6,683 730 730 5,952 1,269 273 996 July 2........... 81 189 5,544 -5,652 86.3 6,074 531 531 5,544 1,087 271 816 9........... 70 6,662 -6,593 103.1 7,451 789 789 6,662 1,356 294 1,063 16........... -33 78 6,471 -6,582 100.3 7,208 737 737 6,471 1,386 292 1,095 23........... 63 151 4,671 -4,759 74.3 5,347 676 674 4,673 1,200 340 860 30........... 116 4,422 -4,306 68.3 5,186 763 764 4,422 981 343 637 38 outside New York City 1975—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 July 2........... 129 314 8,083 -8,267 86.9 14,026 5,943 4,317 9,709 1,627 1,052 357 695 9........... 51 58 10,117 -10,124 108.7 15,238 5,120 4,522 10,716 599 1,601 248 1,353 16........... 2 54 10,877 -10,928 115.3 15,055 4,179 3,934 11,121 244 1,697 309 1,388 23........... 7 54 9,725 -9,773 104.4 13,615 3,701 3,701 9.914 189 995 324 671 30........... 84 1 8,868 -8,785 93.5 13,309 4,441 3,786 9,523 655 636 298 338 5 in City of Chicago 1975—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 July 9 2. . . . . . . . . . . . . . . . . . . . . . 4 3 , , 3 8 7 2 7 4 - - 3 4 , , 7 3 8 8 9 6 2 26 1 5 9 . . 1 7 4 5, , 2 6 2 9 1 0 8 8 6 4 5 4 8 8 6 33 5 4 3 , , 3 8 8 2 8 5 4 2 1 78 3 4 2 1 78 3 16........... 4,613 -4,670 268.3 5,303 691 689 4,614 508 508 23........... 4,233 -4,277 257.7 4,960 727 727 4,233 374 374 30........... 3,948 -3,920 239.1 4,862 914 913 3,949 235 235 33 others 1975—June 4........... 82 5,547 -5,466 72.4 9,371 3,823 3,319 6,052 504 1,473 409 1,064 1 1 1 8 . . . . . .. .. . . .. .. . . .. .. . - 7 2 6 7 6 , , 2 6 2 8 5 4 --7 6 ,1 ,6 .5 8 1 6 9 8 5 6 . . 6 4 1 1 0 0 , , 6 1 4 7 1 6 3 3 , , 4 49 1 2 6 3 3 , , 2 0 2 9 7 4 7 7 , , 0 4 8 13 2 3 1 9 8 8 9 2 1 , , 4 7 1 4 8 2 2 3 0 1 8 3 2 1 , , 1 5 0 3 5 3 25........... 53 5,531 -5,505 71.6 9,516 2,903 2,903 6,613 1,082 1,096 451 645 July 2........... 93 314 4,258 -4,479 57.5 9,336 3,451 3,451 5,885 1,627 774 357 417 9........... 60 58 5,740 -5,738 75.0 10,016 4,276 3,688 6,328 588 1,188 248 940 16........... 6 6,264 -6,258 80.9 9,752 3,488 3,245 6,507 243 1,189 309 880 23........... 1 5,493 -5,496 71.4 8,655 2,973 2.973 5,682 189 621 324 297 30........... 56 4,920 -4,865 62.7 8,447 3,526 2.973 5,574 654 401 298 103 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25, 1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 F.R. BANK INTEREST RATES □ AUGUST 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 7/31/75 date rate 7/31/75 date rate 7/31/75 date3 rate 7/31/75 date rate Boston...................... 6 5/16/75 614 61/2 5/16/75 634 7 7/2/75 71/2 9 3/10/75 91/2 New York............... 6 5/16/75 614 61/2 5/16/75 634 7 6/24/75 7Vi 9 3/10/75 914 Philadelphia........... 6 5/16/75 614 61/2 5/16/75 634 7 6/9/75 71/2 9 3/10/75 91/2 Cleveland................. 6 5/16/75 61/4 61/2 5/16/75 634 7 6/9/75 m 9 3/10/75 91/2 Richmond............... 6 5/16/75 614 61/2 5/16/75 63/4 7 6/9/75 7Vi 9 3/10/75 91/2 Atlanta..................... 6 5/16/75 614 61/2 5/16/75 634 7 6/3/75 m 9 3/10/75 9Vi Chicago................... 6 5/16/75 614 61/2 5/16/75 634 7 6/9/75 71/2 9 3/14/75 9^ St. Louis.................. 6 5/16/75 614 61/2 5/16/75 634 7 7/15/75 m 9 3/14/75 91/2 Minneapolis............ 6 5/23/75 61/2 61/2 5/23/75 634 7 6/9/75 7 Vi 9 3/10/75 9 Vi Kansas City............ 6 5/16/75 614 61/2 5/16/75 634 7 7/9/75 m 9 3/10/75 91/4 Dallas....................... 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 m 9 3/14/75 91/2 San Francisco......... 6 5/16/75 614 61/2 5/16/75 634 6/24/75 m 9 3/10/75 91/2 1 7 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........ 2Vi 21/2 11964—Nov. 24. 3 Vi-4 4 1971—Nov. 11..................... 434-5 5 30. 4 4 19..................... 434 434 1956—Apr. 13...................... 21/2-3 23/4 Dec. 13..................... 41/2-434 43/4 20...................... 234-3 23/4 11965—Dec. 6. 4 -4i/2 4Vi 17..................... 41/2-434 41/2 234-3 3 13. 4 Vi 4Vi 24..................... 41/2 41/2 31...................... 3 3 , -Apr. 7. 4 -41/2 4 1973—Jan. 15..................... 5 5 Nov. 2 1 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 31 - - / 3 3 2 V Vi i 3 3 3 Vi Nov. 2 2 1 0 7 4 . . . 4 4 41 - / 4 2 Vi 4 4 4 1 1 / / 2 2 A M Fe p a b r r . . . 2 2 2 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 i^ 51 - - 5 / 5 2 1 ! / 4 2 5 5 5 1 1 1 / / /2 4 2 Dec. 2...................... 3 3 1968—Mar. 2 1 2 5.. 41 5 4-5 4 5 1/2 11..................... 53 5 4 3 - 4 6 6 534 1958—Jan. 22..................... 234-3 3 Apr. 19. 5 -51/2 51/2 18..................... 6 6 24...................... 234-3 234 26. 51/2 51/2 6 -6Vi 61/4 Mar. 7...................... 214-3 214 Aug. 16. 5 Vi-51/4 51/4 15..................... 6Vi 61/2 13...................... 21/4-23,4 214 30. 514 51/4 July 2..................... 7 7 Apr. 2 1 1 8 . . . . . . . .. .. . . . . .. .. . . . . . . . . . . . . . . .. .. . . . . .. . 13/ 2 4 1 - / 2 4 1/4 2 13 1 / 4 4 Dec. 2 1 0 8.. 514 51 -5 /2 1/2 5 51 V /2 i Aug. 2 14 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 71 -7 /2 1,4 7 7 1 1 / /2 2 S M A e u a p g y t . . 1 1 9 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 13 3 1 4 4 3 - - 4 2 2 2 1 1 3 3 4 4 1969—Apr. 4. 5V 6 i-6 6 6 1974—Apr. 2 3 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 8 4-8 8 8 23...................... 2 2 Dec. 9..................... 734-8 734 O N c o t v . . 2 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2V -2 i 1/2 2 2i/4 1970—Nov. 1 1 3 1 . . 5 53 }4 /4 - - 6 6 6 53/4 16..................... 734 734 16. 53/4 534 1975—Jan. 6..................... 71/4-73/4 73/4 1959— M Ma ay r. 2 1 6 9 6 . . . . . .. . . . . . . . . . . . . . . . . .. . .. . . . . . . . .. . .. . . . . . . . . . . .. . . . . . . . .. . .. . 2 3 1 / 3 2 - - 3 3 Vi 3 3 31/2 Dec. 1 4 1 1 . . . 55 1V/ 5 2i 1 -- / 55 2 3 34/4 5 5 5 3 1 1 / / / 4 2 2 Feb. 2 1 5 4 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 63 1 4 7 4 - 1 - 7 7 4 1 3 / 4 4 7 7 6 1 1 3 / 4 4 4 J S u ep n t e . 1 1 2 1 . . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . .. .. .. . . 3!/ 3 2 1 - / 4 2 4 31/2 1971—Jan. 8. 51/4 Mar. 1 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61/ 6 4 3 -6 4 34 6 6! 3 / 4 4 1960—June 1 1 8 3 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 V 4 /2 i- - 4 4 4 4 31/2 2 2 1 1 9 5 2 9. . . . 5 5 5 5 1 - - 5 4 5 1 1/ 4 4 5 5 5 5 1 1 / / 4 4 May 2 1 1 3 4 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 - 14 61/4 6 6 6 1/4 S A e u p g t . . 1 1 9 4 2 . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 3 3 3 1 - /2 31/2 3 3 3 1/2 J F u e l b y . 1 1 1 6 9 3 . . . 4 43 3 /4 4 4 3 - - 5 5 4 5 5 434 In effect, July 31, 1975.... 6 6 1963—July 17..................... 3 -31/2 31/2 23. 5 5 26..................... 31/2 31/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ RESERVE REQUIREMENTS A 7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963........... 16^/2 12 4 1966—July 14?21 4 4 5 Sept. 8,15. ... 6 1967—Mar. 2............. 31/2 31/2 Mar. 16.......... 3 3 1968—Jan. 11,18.... 161/2 17 12 121/2 1969—Apr. 17........... 17 171/2 121/2 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 75 Nov. 16........... 13 1973 July 19............. IOI/2 121/2 131/2 18 1974—Dec. 12........... 17% 6 3 1975—Feb. 13........... 71/2 10 12 13 I61/2 In effect July 31, 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 prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 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 per 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. 14, 1974, the last of these Dec. 1973 and Sept. and Nov. 1974. reserve-free bases were eliminated. For details, see Regulations D and M. 6 The \6l/i 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 a AUGUST 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, ot deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits............... 4ft Savings deposits....................... Other time deposits Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days........... 4 4ft Less than $100,000: 90 days to 1 year. 5 30-89 days........................ 5 5 5 5 2 1 - y 2 e a y r e s a o r r s . m .... o ... r .. e .. . . . . . 5 5 5V f 4 t 9 1 0 -2 d f a t y y s e t a o r s 1 . . y ... e .. a .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . 65 ft 65 V2 5 6 Vi 5 6 ft Single-maturity: 2ft years or more........... 6ft 6ft 6ft 6ft 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 .. . . . . 5ft 18 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . (4) m 1V4 1 1 V f 4 t $100,000 or more: Governmental units........ (5) (5) m m 6 3 0 0 - - 8 5 9 9 d d a a y y s s . . . . . . . .. .. . . . . . . .. . . . . . 5 5V f 4 t ( ( 3 3 ) ) $100,000 or more............... (3) (3) (3> (3> 9 1 0 80 -1 d 7 a 9 y d s a to y s 1 . .. y .. e .. a .. r 5ft 5ft 6 6% ( ( 3 3 ) ) 1 year or more 6V4 (3) 1 For exceptions with respect to certain foreign time deposits, see amount were subject to the 6ft per cent ceiling that applies to time de­ Bulletin for Feb. 1968, p. 167. posits maturing in 2ft years or more. 2 Multiple-maturity time deposits include deposits that are automati­ Effective Nov. 1, 1973, a ceiling rate of 7^ per cent was imposed on cally renewable at maturity without action by the depositor and deposits certificates maturing in 4 years or more with minimum denominations that are payable after written notice of withdrawal. of $1,000. There is no limitation on the amount of these certificates that 3 Maximum rates on all single-maturity time deposits in denominations banks may issue. of $100,000 or more have been suspended. Rates that were effective 5 Prior to Nov. 27, 1974, no distinction was made between the time Jan. 21, 1970, and the dates when they were suspended are: deposits of governmental units and of other holders, insofar as Regula­ tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 6 3 0 0 - - 8 5 9 9 d d a a y y s s 6 6 l f /4 t p p e e r r c ce e n n t t l 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 6% per cent j 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 1ft per centj 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. 40 50 1945—Feb. 5 July 4.................... 50 50 July 5 1946—Jan. 75 75 1946—Jan. 21 1947—Jan. 31.................... 100 100 1947—Feb. 1 1949—Mar. 75 75 1949—Mar. 30 1951—Jan. 16................... 50 50 1951—Jan. 17 1953—Feb. 75 75 1953—Feb. 20 1955—Jan. 3.................... 50 50 1955—Jan. 4 Apr. 22................... 60 60 Apr. 23 1958—Jan. 70 70 1958—Jan. 16 Aug. 50 50 Aug. 5 Oct. 15.................... 70 70 Oct. 16 1960—July 90 90 1960—July 28 1962—July 9................... 70 70 1962—July 10 1963—Nov. 50 50 1963—Nov. 6 1968—Mar. 70 70 1968—Mar. 11 June 70 50 70 June 8 1970—May 5.................... 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1 1974—Jan. 65 50 65 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit Jo 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

AUGUST 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—June. 614 954 204 48 34 78 16 Ju!y.. 988 211 27 53 9 36 Aug.. 1,652 850 -2,867 1,057 1,940 -130 Sept.. 717 565 786 22 -200 65 200 53 37 Oct... 547 1,110 1,063 Nov.. 1,422 273 107 148 -1,623 92 1,757 78 -465 25 200 Dec.. 973 426 6 85 126 123 -126 53 20 1975—Jan... 341 945 600 14 305 61 26 Feb.. 357 460 900 2,437 129 -2,836 113 249 74 150 Mar.. 760 156 487 1,579 -1,494 361 194 450 212 Apr.. 2,119 318 506 148 485 274 164 May. 903 354 407 50 -3,131 6,635 -3,801 ’298 June. 421 161 612 20 691 488 -529 180 109 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Net Period Govt, chase change 3 securi­ agree­ Repur­ Gross Gross Gross ties Gross Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions sales chases chases sales chases tions right ments 197 0 12.362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,f 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 1974— J J u un ly e . . 1,1 7 1 9 3 0 2 9 1 5 1 4 204 2 4 , , 5 5 8 8 7 0 4,580 4 6 , , 2 1 6 2 9 4 4 6 , , 9 6 6 6 5 7 -2 - , 9 3 1 8 1 1 7 3 6 0 1 9 7 35 2 - - 3 2 7 7 2 0 121 -2 -7 0 0 7 - - 1 2 , , 1 0 1 1 5 1 Aug.. 1,652 850 9,061 11,287 2,096 2,096 3,028 238 3 59 3,322 Sept. , 893 565 786 9,420 9,782 3,551 3.551 -96 207 16 40 187 322 Oct.., 547 1,110 1,063 12,574 12,516 4,618 4,618 -1,684 -100 -185 -1,970 Nov.. 1,765 273 238 6,880 6,404 6,990 6,121 1,647 331 369 174 218 2,739 Dec.. 1,254 426 6 8,855 7,962 11,470 11,895 -498 360 142 188 201 393 1975--Jan.. 746 945 600 9,237 10,367 9,260 8,748 844 -409 103 -136 387 Feb.. 673 460 900 7,167 6,634 11,267 10,305 -258 376 246 -12 39 309 Mar. 3.362 156 1,788 15,933 16,763 5,011 6,928 332 210 -347 -5 -323 -136 Apr.. 3,189 318 506 12,375 12,216 12,774 8.551 6,428 883 24 496 7,829 May. 953 354 407 2,996 3,044 19,489 21,952 -2,224 -567 55 -375 -3,207 June., 1,217 161 450 12,914 13,026 15,219 16,810 -873 -255 -62 -121 -1,317 1 Before Nov. 1973 Bulletin, included matched sale-purchase trans­ 3 Net change in U.S. Govt, securities, Federal agency obligations, and actions, which are now shown separately. bankers’ acceptances. 2 Includes special certificates acquired when the Treasury borrows Note.—Sales, redemptions, and negative figures reduce System hold­ directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, ings; all other figures increase such holdings. Details may not add to 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131; Mar. 1975, 1,560. totals because of rounding. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) Pounds Belgian Canadian French German Italian Japanese Mexico Nether­ Swiss End of period Total sterling francs dollars francs marks lire yen pesos lands francs guilders 1970............................................ 257 154 * * 98 1 * 4 1971............................................ 18 3 3 * 2 1 8 1972............................................. 192 * * * 164 1 20 6 1973............................................. 4 * * * 1 3 1974—May....................... 63 * 5 * 57 1 June................................ 90 * 5 * 84 1 July................................. 8 * 1 * 6 1 Aug................................. 220 * • * 39 1 180 Sept................................. 242 * * * 61 1 180 Oct.................................. 190 * 1 * 8 1 180 Nov................................. 40 * * * 38 1 Dec................................. 2 * * * 1 1 1975—Jan.................................. 2 * * * 1 1 Feb............................... 2 * * * 1 1 Mar................................ 19 * * * 17 1 Apr................................. 2 * * * * 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS o AUGUST 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 July 30 July 23 July 16 July 9 July 2 July 31 June 30 July 31 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............................................................ 332 320 311 315 351 338 360 201 Loans: Member bank borrowings............... 147 1,999 1,132 272 178 561 3,589 Other..................................................... Acceptances: Bought outright.................................. 673 673 680 686 690 685 682 218 Held under repurchase agreements. 37 76 2 Federal agency obligations: 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 .. . 5,08 5 3 3 5,0 2 8 1 3 1 5,0 1 8 8 4 9 5,084 5,083 5,08 6 5 1 3,585 U.S. Govt, securities: Bought outright: Bills.............................. 34,621 35,140 35,237 31,991 37,020 34,475 37,172 35,464 Certificates—Special. Other.. Notes........................... 42,886 42,886 42,886 42,886 42,886 42,886 42,886 39,781 Bonds.......................... 4,522 4,522 4,522 4,522 4,522 4,522 4,522 2,858 Total bought outright........................ i 82,029 i 82,548 i 82,645 i 79,399 i 84,428 i 84,580 i 78,103 Held under repurchase agreements. 899 820 1,451 415 169 Total U.S. Govt, securities. 82,928 83,368 84,096 79,399 84,843 81,883 84,749 78,103 Total loans and securities..................... 88,921 91,410 91,181 85,249 90,990 87,829 91,138 85,495 Cash items in process of collection... *6,542 *7,026 7,902 8,353 7,449 *5,408 5,966 7,966 Bank premises.......................................... 300 298 298 290 290 300 288 243 Operating equipment.............................. 2 2 2 2 2 2 2 Other assets: Denominated in foreign currencies. 31 12 23 21 8 1 25 All other............................................... 2,905 2,910 2,753 2,751 2,632 2,893 2,682 1,433 Total assets. *111,153 *114,098 114,590 109,101 113,842 *108,891 112,581 107,206 Liabilities F.R. notes............................................... 72,533 72,741 73,230 73,444 72,867 72,392 72,229 65,771 Deposits: Member bank reserves.................... *28,318 *30,899 31,011 24,817 26,418 *25,227 25,976 27,376 U.S. Treasury—General account. 1,386 1,333 597 1,381 5,291 2,675 5,773 3,822 Foreign............................................... 284 276 224 239 253 369 373 330 Other: All other2...................................... 574 765 686 701 1,169 Total deposits. *30,562 *33,303 32,505 27,131 32,727 *28,957 32,823 32,697 Deferred availability cash items............. 4,719 4,883 5,662 5,504 5,371 4,188 4,175 5,335 Other liabilities and accrued dividends. 1,077 1,011 1,138 1,067 1,027 1,068 1,076 1,155 Total liabilities........................................... *108,891 *111,938 112,535 107,146 111,992 *106,605 110,303 104,958 Capital accounts Capital paid in............................................................... 911 912 911 909 911 911 909 880 Surplus............................................................................. 897 897 897 897 897 897 897 844 Other capital accounts................................................. 454 351 247 149 42 478 472 524 Total liabilities and capital accounts........................ *111,153 *114,098 114,590 109,101 113,842 108,891 112,581 107,206 Contingent liability on acceptances purchased for foreign correspondents................................................. 1,023 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 42,435 41,423 41,055 40,272 40,065 *42,250 39,760 30,090 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).......... 78,081 78,073 77,922 77,532 77,156 78,070 77,001 70,346 Collateral held against notes outstanding: Gold certificate account.................................... 11,596 11,596 11,596 11,596 11,595 11,596 11,596 2,225 Special Drawing Rights certificate account. 302 302 302 302 292 302 292 Acceptances. U.S. Govt, securities. 69,030 68,930 68,810 68,670 68,650 69,030 68,650 69,600 Total collateral............... 80,928 80,828 80,708 80,568 80,537 80,928 80,538 71,825 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

AUGUST 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 July 30 July 23 July 16 July 9 July 2 July 31 June 30 July 31 147 1,999 1,131 80 271 178 560 3,588 135 1,995 1,127 74 264 162 552 3,476 12 4 4 6 7 16 8 112 710 749 680 686 692 685 682 218 136 168 76 80 98 99 93 31 400 403 421 423 402 403 383 187 91 days to 1 year.............................................................. 174 178 183 183 192 183 206 82,928 83,368 84,096 79,399 84,843 81,883 84,749 78,103 4,768 5,468 5,094 2,151 4,890 5,294 3,891 9,127 18,459 18,725 18,810 16,905 19,621 15,760 21,187 17,770 21,002 20,476 21,493 21,644 21,633 22,130 20,972 21,273 1-5 years............................................................................ 28,366 28,366 28,366 28,366 28,366 28,366 28,366 19,967 5-10 years.......................................................................... 7,137 7,137 7,137 7,137 7,137 7,137 7,137 7,954 Over 10 years.................................................................... 3,196 3,196 3,196 3,196 3,196 3,196 3,196 2,012 5,136 5,294 5,273 5,084 5,183 5,083 5,146 3,585 79 237 190 1 99 27 109 3 16-90 days.......................................................................... 276 276 291 291 283 276 282 85 532 532 517 517 526 531 495 449 2,544 2,544 2,567 2,567 2,567 2,544 2,552 1,719 5-10 years.......................................................................... 1,144 1,144 1,147 1,147 1,147 1,187 1,147 865 Over 10 years.................................................................... 561 561 561 561 561 518 561 464 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period Leading SMSA’s Total 232 Leading SMSA’s Total 232 Total SMSA’s 226 Total SMSA’s 226 233 (excl. other 233 (excl. other SMSA’s N.Y. 6 others2 N.Y.) SMSA’s SMSA’s N.Y. 6 others2 N.Y.) SMSA’s 1974—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 ^11,041.9 *•125.1 *■320.4 118.2 82.2 67.8 Apr.................................. r22,707.7 10,810.3 4,770.6 *•11,897.5 *•7,126.9 *■128.3 *•337.5 115.3 *•82.1 *•68.8 May................................ r22,739.7 10,826.1 4,852.6 rll ,913.6 *•7,016.0 *■129.7 *•341.3 *•121.3 *•83.0 68.2 June................................ 22,499.8 10,612.2 4,755.5 11,887.7 7,132.1 124.7 328.6 115.5 80.2 66.7 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s include some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634—35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 MONEY STOCK o AUGUST 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M2 Mi Mi M6 Mi Mi Mi M 4 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—June. 280.0 597.1 955.8 678.4 1.037.1 278.2 596.5 957.2 676.2 1,036.8 July.. 280.4 599.6 959.6 683.2 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 'I ,029.7 '722.9 -•1,115.3 284.9 635.5 rl, 029.6 719.6 rl ,113.7 June** 294.0 647.3 1.046.3 731.3 1,130.4 292.1 646.7 1.047.9 729.1 1.130.2 Note.—Composition of the money stock measures is as follows: Ms: M2 plus mutual savings bank deposits, savings and loan shares, and credit union shares (nonbank thrift). Mi: Averages of daily figures for (1) demand deposits of commercial M4: M2 plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in M5: Mi plus large negotiable CD’s. process of collection and F.R. float; (2) foreign demand balances at F.R. For a description of the latest revisions in Mi, M2, and M3, see “Revi­ Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of sion of Money Stock Measures and Member Bank Reserves and Deposits” commercial banks. on pp. 817-27 of the Dec. 1974 Bulletin. M2: Averages of daily figures for Mi plus savings deposits, time de­ Latest monthly and weekly figures are available from the Board’s H.6 posits open account, and time certificates other than negotiable CD’s of release. Back data are available from the Banking Section, Division of $100,000 of large weekly reporting banks. Research and Statistics. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks Time and savings Non­ Demand deposits Time and savings Non­ U.S. Period deposits bank deposits bank Govt. Cur­ De­ thrift Cur­ thrift de­ ren­ mand insti­ ren­ insti­ pos­ cy de­ tu­ cy Do­ tu­ its3 pos­ tions2 mes­ tions2 its CD’s1 Other Total Total Mem­ tic CD’s1 Other Total ber non­ mem­ 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—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 r392.4 70.1 214.8 154.1 57.8 84.1 350.6 434.7 r394.1 4.2 June*5............. 71.1 222.8 84.1 353.3 437.3 399.0 71.3 220.8 157.9 60.0 82.3 354.6 436.9 401.1 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

AUGUST 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—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 June*\.. 34.88 34.66 34.67 33.01 500.5 330.8 165.9 3.8 497.5 330.2 164.2 3.1 507.5 504.5 1 Averages of daily figures. Member bank reserve series reflects actual by Regulation D. Private demand deposits include all demand deposits reserve requirement percentages with no adjustment to eliminate the except those due to the U.S. Govt., less cash items in process of collection effect of changes in Regulations D and M. Required reserves were in­ and demand balances due from domestic commercial banks. creased by $660 million effective Apr. 16, 1969, and $400 million effective 4 “Total member bank deposits” subject to reserve requirements, plus Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Euro-dollar borrowings, loans sold to bank-related institutions, and Required reserves were reduced by approximately $2.5 billion, effective certain other nondeposit items. This series for deposits is referred to as Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 “the adjusted bank credit proxy.” million effective Nov. 22. Note.— For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 817-27 of the Dec. 1974 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments 1 Total i loans Plus Treas­ Other4 ments 1 Total i loans Plus Treas­ Other4 sold2 Total loans ury sold2 Total loans ury 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—July 315.... 687.5 494.8 500.2 178.0 180.9 55.9 136.8 686.3 497.2 502.6 178.4 181.3 52.2 136.9 Aug. 28........ 693.9 501.5 506.8 181.0 183.9 55.3 137.1 689.4 500.6 505.9 179.4 182.3 52.0 136.8 Sept. 25 , 689.9 500.2 505.5 181.4 184.2 52.3 137.4 689.5 501.2 506.5 181.5 184.3 50.7 137.6 Oct. 30 690.8 502.0 507.2 183.2 186.0 49.8 139.0 689.5 500.7 505.9 182.0 184.8 50.7 138.1 Nov. 276.... 692.5 503.8 508.7 184.3 187.0 49.1 139.6 692.2 502.0 506.9 183.2 185.9 52.1 138.1 Dec. 31....... 687.1 '498.2 '503.0 182.6 185.3 r48.8 140.1 r705.6 510.7 515.5 186.8 189.5 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. 26*\... 691.0 497.6 502.1 182.1 184.8 53.3 140.1 685.3 491.5 496.0 180.3 183.0 54.7 139.1 Mar. 26p___ 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 28 p___ 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 July 30p___ 702.1 485.8 490.3 176.0 178.8 74.0 142.3 700.6 487.9 492.4 175.9 178.7 70.4 142.4 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 there were increases of about $500 million in loans, $100 million in “Other last Wednesday of month except for June 30 and Dec. 31; data are partly Digitized fsoerc uFrRitiAesS,”E aRnd $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 □ AUGUST 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia­ Interbank3 Other Total Num­ FRS membership Cash bilities Bor­ capital ber and FDIC assets3 and row­ ac­ of insurance Total capital Total 3 Demand ings counts banks U.S. Oth2er ac­ De­ Treas­ counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series 6 All commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 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. 318. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31.. 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31.. 598,f “ 414,696 67,028 117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31.. 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—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. 309. 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 r. 744,107 549,183 54,451 140,473128,042 919.552 747,903 43,48311,496 4,807 267;506 420,611 58,369 63,650 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. 30*. 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*. 733,230 523,060 67,980142 ,190110,710 898,130 721,170 31,21010,830 3,810 244,600 430,620 62,720 65,430 14.569 July 30*. 734,710 521,940 70,370142 400105,750 894,870 720,670 32,64010,640 2,260 243,100 432,030 60,780 65,920 14.569 Members of F.R. System: 1941—Dec. 31 .. 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31.. 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 I960—Dec. 31.. 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 318. 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 95,598100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44.741 5,735 1974—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. 309. 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, ~~ 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 r. 568,532 429,537 38,921100,073106,995 715,615 575,563 41,06210,052 3,183 204,203 317,064 52,850 48,240 5,780 1975—Jan. 29.. 550.264 414,426 37,549 98,289 86,321 676.905 536,256 28,31110,299 3,247 177,701 316,698 56,136 48,411 5,783 Feb. 26.. 549,144 412,076 38,628 98,440 88.430 678,970 535,250 28,157 8,991 1,989 178,596 317.517 58,868 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*. 553,091 404,580 48,695 99,816 94,405 692,583 548,631 29,557 9,388 2.859 186,266 320,561 57,959 49,593 5.795 July 30*. 553,545 403,742 50,050 99,753 89,898 688,756 547,222 30,980 9,198 1,541 184,595 320,908 56,094 49,951 5.795 Call date series j Insured banks: Total: 1941 _Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970-Dec. 318.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1971—Dec. 31... 514,097 345,386 64,691104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—June 30... 709,904 521,424 51,832136,648123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 61,003 14,108 Dec. 31 734,516 541,111 54,132139,272125,375 906,325 741,665 42,58710,693 4,799 265,444 418,142 55,988 63,039 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. 318.. 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 '.. 428,433 321,466 29,075 77,892 76,523 534,207 431,039 23,497 6,750 2,437 154,397 243,959 39,603 35,815 4,706 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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. 318... 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. 318... 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 61,240100,804 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. 318... 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: 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 i157 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. 318... 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.... 175,690119,761 15,530 40,400 21,047204,051 172,454 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 9 Member bank data for Oct. exclude assets of $3.6 billion of one large securities and Export-Import Bank portfolio fund participations were bank. 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. exclude 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, « 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 Figure takes into account the following changes, which became changes in F.R. membership, deposit insurance status, and by mergers effective June 30, 1969: (1) inclusion of consolidated reports (including etc. figures for all bank-premises subsidiaries and other significant majority- Figures are partly estimated except on call dates. owned domestic subsidiaries) and (2) reporting of figures for total loans For revisions in series before June 30, 1947, see July 1947 Bulletin, and for individual categories of securities on a gross basis—that is, before pp. 870-71. deduction of valuation reserves—rather than net as previously reported. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 COMMERCIAL BANKS □ AUGUST 1975 ASSETS BY CLASS OF BANK, DECEMBER 31, 1974 (Amounts in millions of dollars) Member banks1 All Insured Large banks Account commercial commercial Non­ banksc banks c member Total0 New City of Other All other0 banks1 York Chicago large City Cash bank balances, items in process.............................. 128,042 125,375 106,995 27,604 4,816 40,126 34,449 21,047 Currency and coin........................................................... 11,658 11,633 8,846 691 198 2,889 5,068 2,812 Reserves with F.R. banks.............................................. 27,109 27,109 27,109 4 960 1 783 10,356 10 011 Demand balances with banks in United States......... 36,073 34,317 21,685 7’265 ’357 4’, 382 9*681 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.................................... 194,924 193,404 138,995 16,412 5,612 47,254 69,716 55,929 U.S. Treasury.................................................................... 54,451 54,132 38,921 5,332 1,820 13,323 18,445 15,529 Other U.S. Govt, agencies.............................................. 32,841 32,380 20,858 2,005 874 6,450 11,529 11,984 States and political subdivisions................................... 100,376 100,010 74,261 8,288 2,706 25,761 37,507 26,115 All other securities........................................................... 7,256 6,882 4,954 787 212 1,719 2,235 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............................................ 186,934 185,420 131,079 13,372 4,781 43,449 69,476 55,855 U.S. Treasury................................................................ 51,902 51,589 36,400 4,362 1,360 12,286 18,393 15,502 Other U.S. Govt, agencies.......................................... 31,489 31,028 19,510 1,464 753 5,813 11,480 11,979 States and political subdivisions............................... 97,006 96,640 70,925 6,947 2,456 24,150 37,372 26,081 All other......................................................................... 6,537 6,163 4,244 599 212 1,200 2,232 2,293 Federal funds sold and securities resale agreements... 40,042 38,881 29,848 1,887 985 14,741 12,235 10,194 Commercial banks........................................................... 33,807 32,645 23,723 1,052 698 10,628 11,345 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............................................................................ 509,531 502,231 399,963 82,049 24,261 149,804 143,849 109,567 Real estate loans............................................................... 130,585 130,301 94,576 8,184 1,325 35,945 49,123 36,009 Secured by farmland................................................... 5,904 5,887 2,634 14 2 345 2,274 3,270 Secured by residential................................................. 81,606 81,403 60,573 4,567 887 24,133 30,986 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 26,062 18,430 Multifamily............................................................... 7,567 7,540 6,257 1,432 59 2,934 1,831 1,310 FHA insured......................................................... 938 921 820 166 27 355 272 118 Other...................................................................... 6,629 6,619 5,437 1,266 32 2,579 1,559 1,192 Secured by other properties...................................... 43,075 43,012 31,369 3,602 437 11,467 15,863 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................................. 35,235 35,011 33,626 12,911 5,009 13,047 2,660 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.................................. 186,826 182,802 156,340 43,095 13,408 60,473 39,365 30,485 Loans to individuals........................................................ 103,210 102,951 74,460 5,213 1,558 26,751 40,938 28,750 Instalment loans........................................................... 80,242 80,033 57,440 3,177 835 20,819 32,608 22,802 Passenger automobilies........................................... 32,847 32,763 22,125 462 161 6,954 14,549 10,722 Residential-repair/modernize................................ 5,546 5,536 4,074 206 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....................................................... 8,997 8,996 6,520 97 54 2,353 4,016 2,477 Other...................................................................... 6,383 6,362 4,311 59 64 1,447 2,742 2,072 Other instalment loans............................................ 15,390 15,299 10,602 1,242 129 2,853 6,378 4,789 Single-payment loans to individuals........................ 22,968 22,919 17,020 2,036 723 5,932 8,330 5,948 All other loans.................................................................. 13,906 13,738 12,543 3,631 1,152 5,214 2,546 1,362 Total loans and securities................................................... 744,496 734,516 568,806 100,348 30,859 211,799 225,800 175,690 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............................................................................ 19,677 19,020 16,628 5,104 872 7,132 3,519 3,049 Total assets............................................................................ 919,941 906,325 715,890 140,569 37,581 268,343 269,398 204,051 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

AUGUST 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 commercial commercial member banksc banks c Total0 All other c banks1 New City of Other York Chicago large City Demand deposits.................................................................. 315,796 312,829 248,448 55,556 11,307 88,451 93,134 67,348 Mutual savings banks..................................................... 1,363 1,197 1,121 559 3 190 370 242 Other individuals, partnerships, and corporations.. 235,774 234,780 180,792 30,816 7,538 67,111 75,327 54,982 U.S. Government............................................................. 4,807 4,799 3,183 226 36 815 2,106 1,624 States and political subdivisions................................... 18,615 18,484 13,125 666 218 3,889 8,353 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 10,297 8,431 2,833 251 2,912 2,436 2,562 Time and savings deposits.................................................. 432,496 428,836 327,390 51,799 17,491 119,486 138,614 105,106 Savings deposits................................................................ 135,597 135,353 97,585 6,061 2,060 34,273 55,191 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.................................... 50,102 49,930 37,057 2,060 1,307 16,494 17,196 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........................................................................ 748,292 741,665 575,838 107,355 28,799 207,936 231,748 172,454 Federal funds purchased and securities sold under agreements to repurchase......................................;... 52,325 51,139 48,349 10,048 4,295 26,357 7,649 3,976 Other liabilities for borrowed money.............................. 6,045 4,848 4,501 1,571 63 2,406 460 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...................................................................... 847,597 834,632 660,559 129,603 34,977 248,927 247,052 187,038 Minority interest in consolidated subsidiaries............... 6 5 2 2 3 Total reserves on loans/securities..................................... 8,688 8,649 7,088 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 2,229 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......................................................... 63,650 63,039 48,240 9,372 2,115 16,748 20,005 15,410 Capital notes and debentures........................................ 4,290 4,226 3,422 755 61 1,673 933 868 Equity capital.................................................................... 59,360 58,813 44,818 8,616 2,054 15,076 19,072 14,542 Preferred stock............................................................. 54 43 24 10 13 30 Common stock............................................................. 14,820 14,723 11,014 2,188 568 3,560 4,698 3,806 Surplus............................................................................ 25,396 25,224 19,226 3,720 1,140 6,840 7,525 6,170 Undivided profits......................................................... 18,122 17,917 13,905 2,704 301 4,398 6,502 4,216 Other capital reserves.................................................. 968 904 649 4 44 267 334 319 Total liabilities, reserves, minority interest, capital accounts.............................................................................. 919,941 906,325 715,890 140,569 37,581 268,343 269,398 204,051 Demand deposits adjusted3............................................... 228,395 225,864 165,853 26,717 6,117 54,535 78,483 62,542 Average total deposits (past 15 days).............................. 724,418 717,811 555,884 103,014 27,229 199,287 226,354 168,534 Average total loans (past 15 days).......................................... 519,192 510,810 401,666 81,665 24,493 150,485 145,023 117,525 Selected ratios: Percentage of totai assets Cash and balances with other banks........................... 13.9 13.8 14.9 19.6 12.8 15.0 12.8 10.3 21.2 21.3 19.4 11.7 14.9 17.6 25.9 27.4 Total securities held......................................................... 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 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 □ AUGUST 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 Pers. estate banks ury curi­ indus­ U.S. U.S. and se­ ties trial Treas­ Other Treas­ Other sales Other curi­ ury secs. ury secs. finan. ties secs. secs. COS., etc. Large banks— Total 1974 July 3.................... 394,699 16,326 14,308 1,039 495 484294,749 125,614 3,924 418 4,440 122 2,682 9,979 21,379 58,411 10.................... 393,974 16,038 14,177 918 482 461294,955 125,813 3,922 462 3,994 120 2,669 10,089 21,618 58,526 1 7 393,409 14,930 13,003 1,071 402 454295,938 126,581 3,942 493 3,886 108 2,670 10,230 21,580 58,710 2 4 389,976 12,800 10,971 935 406 488294,567 126,158 3,908 421 4,008 111 2,664 9,844 21,423 58,833 31.................... 397,781 16,527 13,418 1,881 581 647297,975 126,143 3,928 1,726 4,696 113 2,677 10,215 21,648 59,008 1975 June 4................... 392,798 19,635 16,049 2,256 770 560282,872 122,004 3,390 1,897 3,507 84 2,336 9,256 20,134 59,245 11.................... 395,880 21,301 15,234 4,588 885 594282,222 121,961 3,404 1,961 3,335 85 2,337 9,028 20,190 59,251 1 8 396,191 19,758 15,734 2,574 893 557282,519 122,155 3,431 1,306 3,398 83 2,349 9,426 20,395 59,228 2 5 389,756 15,796 12,675 1,871 637 613281,778 121,885 3,456 605 3,663 114 2,340 9,430 20,477 59,204 July 2 p................. 394,903 18,803 15,607 1,710 719 767283,900 122,326 3,477 981 3,896 101 2,348 9,378 20,600 59,209 9 p................. 397,932 20,947 15,694 3,911 640 702284,553 122,077 3,501 2,948 3,242 101 2,338 9,329 20,468 59,124 I 6p................. 391,959 17,054 14,162 1,751 465 676282,233 121,729 3,505 939 3,488 102 2,342 9,136 20,340 59,116 2 3 3 0 p * . . . . .. . .. . . . .. . . . .. . .. . . . .. . 3 38 8 8 7, , 6 9 9 9 7 0 1 15 4 , , 4 0 4 8 1 2 1 1 3 1, , 7 21 46 7 1 1, , 4 4 4 2 1 7 3 3 3 3 3 5 4 5 6 6 2 2 2 2 8 8 0 0, , 7 68 4 2 2 1 12 2 0 1 , , 6 0 6 8 6 2 3 3, , 5 5 1 3 8 5 8 7 7 6 9 6 3 3 , , 5 6 2 4 8 7 1 1 0 1 9 4 2 2 , , 3 3 3 1 1 2 9 8 , , 1 9 3 6 3 2 2 20 0 , , 0 1 3 3 9 7 5 5 9 9 , , 0 0 6 4 7 8 New York City 197 4 July 3................... 89,065 2,269 2,232 8 29 72,342 37,587 136 326 2,586 23 560 3,507 7,933 6,879 1 0 88,265 1,862 1,793 5 31 33 72,191 37,614 128 393 2,192 23 557 3,523 8,068 6,913 1 7 89,006 2,545 2,504 9 32 72,499 37,845 140 410 2,207 23 558 3,586 8,066 6,965 2 4 88,023 1,869 1,776 56 37 72,006 37,606 133 354 2,259 28 557 3,348 8,066 7,003 31................... 92,098 2,807 2,716 55 36 74,683 37,525 135 1,611 2,949 30 557 3,507 8,140 7,053 1975 June 4................... 87,128 1,194 1,058 31 105 70,509 37,165 84 1,648 2,405 18 457 3,204 7,830 7,438 I I 87,652 1,107 982 5 120 70,353 37,255 82 1,605 2,267 18 466 3,117 7,778 7,440 1 8 88,724 1,258 1,000 37 149 72 70,287 37,330 82 1,099 2,341 18 478 3,328 7,906 7,422 2 5 87,271 691 458 79 154 69,986 37,331 83 516 2,575 49 470 3,380 7,863 7,422 July 2 p................. 88,847 1,198 768 46 74 310 71,317 37,649 80 825 2,788 39 473 3,277 8,002 7,405 9 p................. 89,337 1,001 769 9 223 72,205 37,452 79 2,630 2,230 38 477 3,176 7,955 7,405 16 p................. 88,517 2,147 1,875 53 219 70,214 37,235 78 691 2,431 36 481 3,146 7,978 7,424 23*>................. 86,916 1,482 1,032 224 226 69,359 36,773 80 772 2,464 50 450 3,046 7,934 7,445 30*>................. 87,850 2,284 1,862 236 186 69,454 36,735 90 648 2,578 45 439 3,150 7,791 7,449 Outside New York City 1974 July 1 3 0 .. 3 30 0 5 5 , , 7 6 0 3 9 4 1 14 4 , , 1 05 7 7 6 1 1 2 2 , , 0 3 7 8 6 4 1,0 9 3 1 1 3 4 45 9 1 5 4 4 5 2 5 8 2 2 2 2 2 2 , , 4 7 0 6 7 4 8 8 8 8 , , 1 0 9 2 9 7 3 3 , , 7 7 8 9 8 4 9 69 2 1 1, , 8 8 0 5 2 4 9 9 9 7 2 2 , , 1 1 2 1 2 2 6 6 , , 4 56 7 6 2 1 13 3 , , 5 4 5 4 0 6 5 5 1 1, , 6 5 1 3 3 2 17. 304,403 12,385 10,499 1,062 402 422223,439 88,736 3,802 83 1,679 85 2,112 6,644 13,514 51,745 24. 301,953 10,931 9,195 879 406 451222,561 88,552 3,775 67 1,749 83 2,107 6,496 13,357 51,830 31. 305,683 13,720 10,702 1,826 581 611223,292 88,618 3,793 115 1,747 83 2,120 6,708 13,508 51,955 1975 June 4.. 305,670 18,441 14,991 2,225 770• 455212,363 84,839 3,306 249 1,102 66 1,879 6,052 12,304 51,807 11.. 308,228 20,194 14,252, 4,583 885 474211,869 84,706 3,322 356 1,068 67 1,871 5,911 12,412 51,811 18.. 307,467 18,500 14,734 2,537 744 485212,232 84,825 3,349 207 1,057 65 1,871 6,098 12,489 51,806 25.. 302,485 15,105 12,217 1,792: 637 459211,792 84,554 3,373 89 1,088 65 1,870' 6,050 12,614 51,782 July Ip . 306,056> 17,605 14,839' 1,664r 6451 457' 212,583 84,677 3,397 156 1,108 62 1,875 6,101 12,598 51,804 169*P>.. 3 3 0 03 8 , , 4 5 4 95 2 ! ’ 1 14 9, , 9 9 4 0 6 7 1 1 4 2, ,9 2 2 87 5 r » 3 1 , , 9 6 0 9 2 81 : 4 64 6 C 5 1 : 4 4 7 57 9' ' 2 2 1 1 2 2 , , 3 0 4 1 8 9 8 8 4 4 , , 6 4 2 9 5 4 ! ■ 3 3 , , 4 4 2 2 2 7 2 3 4 1 8 8 1 1 , ,0 0 5 12 7 6 6 3 6 1 1, ,8 8 6 6 1 1 6 5 , , 1 9 5 9 3 0i 1 1 2 2 , , 5 3 1 6 3 2 5 5 1 1, , 7 6 1 9 9 2 23 p. 300,781 12,60C 10,714h 1,217 333 336i211,383 84,309» 3,438 107 1,064 64 1,881 5,916i 12,203 51,622 30*>. 301,14C) 13,151 11,355i 1,191 335i 276.211,228 83,931 3,445 118 1,069 64 1,873i 5,983 12,248 51,599 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 mes­ eign Within 1 to After tic 1 yr. 5 yrs. 5 yrs. Tax Certif. war­ All of All rants 3 other partici­ others pation* Large banks— Total 1974 3,971 6,690 34,119 2,040 20,960 20,874 1,749 3,590 11,724 3,811 62,750 7,255 41,205 2,512 11,778 ....................July 3 4,029 6,996 34,137 2,117 20,463 20,350 1,279 3,552 11,708 3,811 62,631 7,048 41,428 2,385 11,770 .10 4,116 6,874 34,197 2,022 20,529 20,182 1,320 3,495 11,614 3,753 62,359 6,968 41,350 2,377 11,664 ,17 4,036 6,859 34,279 1,837 20,186 19,944 1,052 3,563 11,565 3,764 62,665 7,060 41,419 2,419 11,767 .24 3,924 6,979 34,420 1,878 20,620 20,914 2,047 3,557 11,562 3,748 62,365 6,978 41,144 2,493 11,750 .31 1975 2,614 5,295 33,793 1,341 17,976 30,590 6,628 4,596 15,951 3,415 59,701 5,859 39,593 2,396 11,853 4 2,467 5,235 33,770 1,333 17,865 32,150 7,669 4,632 16,485 3,364 60,207 6,067 39,721 2,429 11,990 .11 2,395 5,154 33,795 1,267 18,137 32,723 7,975 4,880 16,442 3,426 61,191 6,519 40,168 2,422 12,082 .18 2,413 5,161 33,870 1,399 17,761 31,583 7,181 4,779 16,359 3,264 60,599 6,601 39,634 2,400 11,964 .25 2,482 5,279 33,944 1,586 18,293 32,021 7,086 5,036 16,736 3,163 60,179 6,253 39,541 2,394 11,991 ....................July 92v p 2,492 5,664 33,906 1,406 17,957 32,326 6,962 5,043 17,175 3,146 60,106 6,268 39,474 2,400 11,964 2,517 5,636 33,912 1,355 18,116 32,058 6,996 5,046 16,952 3,064 60,614 6,365 40,005 2,474 11,770 .16* 2,525 5,601 33,924 1,362 17,712 32,042 7,073 5,067 16,858 3,044 60,831 6,555 39,820 2,458 11,998 .23* 2,333 5,737 34,024 1,493 17,840 32,308 7,534 5,127 16,575 3,072 60,559 6,547 39,678 2,445 11,889 . 30* New York City 1974 1,663 3.100 2,452 793 4,797 3,506 -40 404 1,884 1,258 10,948 2,246 5,844 631 2,227 ....................July 3 1,659 3,279 2,449 788 4,605 3,288 -226 377 1,877 1,260 10,924 2,155 5,911 546 2,312 .10 1,700 3,156 2,456 823 4,564 3,204 -173 365 1,806 1,206 10,758 2,128 5,844 543 2,243 .17 1,647 3.100 2,468 810 4,627 3,096 -252 373 1,759 1,216 11,052 2,354 5,892 545 2,261 .24 1,626 3,257 2,486 811 4,996 3,770 -369 426 1,767 1,208 10,838 2,272 5,743 551 2,272 .31 1975 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 4 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 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 1,110 2,308 2.589 750 4,022 7,151 1,593 663 4,034 861 9,181 1,665 4,853 535 2,128 ....................July 2 p 1,101 2,621 2.589 606 3,846 7,059 1,415 550 4,216 878 9,072 1,592 4,866 534 2,080 9p 1,179 2,503 2.539 541 3,952 6,881 1,440 595 4,030 816 9,275 1,495 5,258 535 1,987 16* 1,170 2,467 2.539 512 3,657 7,000 1,629 607 3,938 826 9,075 1,458 5,106 534 1,977 .23* 1,018 2,518 2,543 633 3,817 7,153 1,893 589 3,842 829 8,959 1,427 5,051 520 1,961 .30* Outside New York City 1974 2,308 3,590 31,667 1,247 16,163 17,368 1,789 3,186 9,840 2,553 51,802 5,009 35,361 1,881 9,551 ....................July 3 2,370 3.717 31,688 1,329 15,858 17,062 1,505 3,175 9,831 2,551 51,707 4,893 35,517 1,839 9,458 .10 2,416 3.718 31,741 1,199 15,965 16,978 1,493 3,130 9,808 2,547 51,601 4,840 35,506 1,834 9,421 .17 2,389 3,759 31,811 1,027 15,559 16,848 1,304 3,190 9,806 2,548 51,613 4,706 35,527 1,874 9,506 .24 2,298 3,722 31,934 1,067 15,624 17,144 1,678 3,131 9,795 2,540 51,527 4,706 35,401 1,942 9,478 .31 1975 1,528 2,935 31,225 740 14,331 24,002 5,069 4,041 12,403 2,489 50,864 4,417 34,758 1,877 9,812 4 1,364 2,932 31,193 734 14,122 25,245 6,037 4,027 12,729 2,452 50,920 4,379 34,743 1,903 9,895 .11 1,323 2,908 31,212 766 14,256 25,524 6,258 4,222 12,616 2,428 51,211 4,435 34,941 1,885 9,950 .18 1,317 2,883 31,280 861 13,966 24,553 5,504 4,114 12,572 2,363 51,035 4,667 34,649 1,868 9,851 .25 1,372 2,971 31,355 836 14,271 24,870 5,493 4,373 12,702 2,302 50,998 4,588 34,688 1,859 9,863 2* 1,391 3,043 31,317 800 14,111 25,267 5,547 4,493 12,959 2,268 51,034 4,676 34,608 1,866 9,884 . 9* 1,338 3.133 31,373 814 14,164 25,177 5,556 4,451 12,922 2,248 51,339 4,870 34,747 1,939 9,783 .16* 1,355 3.134 31,385 850 14,055 25,042 5,444 4,460 12,920 2,218 51,756 5,097 34,714 1,924 10,021 .23* 1,315 3,219 31,481 860 14,023 25,155 5,641 4,538 12,733 2,243 51,600 5,120 34,627 1,925 9,928 .30* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

/ REPORTING BANKS □ AUGUST 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ process with and do­ sidiar­ assets total of F.R. coin mestic ies not liabil­ States collec­ Banks banks consol­ ities and tion idated Total polit­ U.S. IPC ical Govt. sub­ Vdivi­ ?S sions 36,811 23,874 3,911 10,045 1,609 26,451 497,400 164,144 114,626 6,409 935 31,247 23,899 4,558 10,041 1,607 26,516 491,842 157,390 112,955 5,971 859 33,180 25,660 4,515 11,149 1,602 26,091 495,606 158,172 114,364 5,892 745 31,874 26,683 4,591 10,253 1,573 26,875 491,825 153,925 111,748 5,666 637 35,192 20,314 4,489 11,466 1,594 28,772 499,608 161,763 115,119 6,272 733 34,689 24,526 4,291 11,832 1,730 37,553 507,419 163,432 116,625 5,991 771 33,455 20,231 4,734 11,823 1,735 37,372 505,230 162,574 118,749 5,933 728 34,358 23,545 4,711 12,261 1,739 36,389 509,194 166,493 119,008 6,130 742 32,898 24,262 4,945 11,858 1,761 36,572 502,052 160,567 115,245 7,084 646 35,959 20,618 4,566 12,504 1,755 38,905 509,210 169,097 121,565 6,413 914 32,615 18,612 4,731 12,207 1,776 37,855 505,728 162,384 117,715 5.932 868 34,022 25,019 4,828 12,717 1.750 36,542 506,837 163,819 119,284 5,968 764 30,758 23,845 4,986 11,634 1,743 36,282 496,945 157,217 115,375 5.933 699 31,346 21,914 5,034 11,625 1.751 36,904 497,564 158,928 115,896 5,956 736 12,100 6,816 457 4,178 726 8,202 121,544 24,872 410 558 10,166 7,846 523 3,881 710 8,473 119,864 24,223 349 492 10,879 7,366 508 5,064 711 8,373 121,907 44,487 24,449 297 399 12,787 8,322 504 4,715 710 8,876 123,937 45,433 25,370 347 343 13,547 6,433 506 5,522 710 9,506 128,322 26,215 461 399 12,143 7,423 505 4,627 788 13,172 125,786 25,333 366 416 12,472 6,360 511 5,003 789 13,006 125,793 25,802 454 387 12,088 7,310 517 4,909 795 12,195 126,538 26,713 310 382 13,032 7,294 539 5,444 795 12,223 126,598 47,631 26,073 1,118 329 12,004 6,352 511 5,225 800 13,712 127,451 27,286 325 520 11,044 6,405 520 4,953 800 13,454 126,513 25,482 228 477 11,364 7,572 504 5,589 795 12,677 127,018 25,799 268 422 10,601 6,753 515 5,371 798 12,547 123,501 25,174 318 384 11,076 6,001 544 4,752 795 13,219 124,237 25,906 335 405 24,711 17,058 3,454 5,867 883 18,249 375,856 89,754 5,999 377 21,081 16,053 4,035 6,160 897 18,043 371,978 88,732 5,622 367 22,301 18,294 4,007 6,085 891 17,718 373,699 89,915 5,595 346 18,361 4,087 5,538 863 17,999 367,888 86,378 5,319 294 13,881 3,983 5,944 884 19,266 371,286 88,904 5,811 334 * 17,103 3,786 7,205 942 24,381 381,633 t 91,292 5,625 355 I 13,871 4,223 6,820 946 24,366 379,437 i 92,947 5,479 341 ) 16,235 4,194 7,352 944 24,194 382,656 i 92,295 5,820 360 > 16,968 4,406 6,414 966 24,349 375,454 '> 89,172 5,966 317 S 14,266 4,055 7,279 955 25,193 381,759 ) 94,279 6,088 394 12,207 4,211 7,254 976 24,401 379,215 92,233 5,704 391 I 17,447 4,324 7,128 ; 955 23,865 379,819 r 93,485 5,700 342 1 17,092 4,471 6,263 945 23,735 373,444 [ 90,201 5,615 315 ) 15,913 4,49Cl 6,873i 956. 23,685 373,327 ^ 89,990 5,621 331 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ WEEKLY REPORTING BANKS A 21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Fed­ eral Other Foreign IPC funds liabili­ Certi­ States pur­ ties, Wednesday fied and Do­ chased, etc. 8 and polit­ mes­ For­ etc. 7 F.R. Com­ offi­ Total6 ical tic eign Banks Others Govts., mer­ cers* Sav­ Other sub­ inter­ govts.2 etc. 2 cial checks ings divi­ bank banks sions Large banks— Total 1974 1,246 4,970 7,031 211,529 58,114 112,242 24,232 7,076 8,933 53,465 2,361 6,100 21,448 ...............July 3 1,193 5,469 6,019 211,516 58,060 112,000 24,402 7,047 9,016 55,108 1,745 6,086 21,671 ..........................10 1,269 5,143 6,719 213,566 57,983 113,640 24,413 7,389 9,001 52,608 3,417 6,119 23,524 ...........................17 1,104 5,088 7,208 215,431 57,852 114,841 24,576 7,535 9,402 49,449 4.780 6,137 23,910 ...........................24 1,875^ 5,431 7,417 216,232 57,602 115,673 24,450 7,346 9,898 50,275 2.781 5,869 24,161 ...........................31 1975 1,262 4,745 7,257 224,283 64,338 113,107 24,905 7,992 12,450 51,527 430 3,406 23,317 ...............June 4 1,197 4,431 7,132 224,776 64,629 113,458 24,559 7,987 12,595 49,960 89 3,224 23,519 ...........................11 1,246 4,729 6,879 223,053 64,874 112,135 24,130 7,885 12,553 52,210 340 3,236 22,909 ............................18 1,296 4,591 7,316 223,660 64,981 112,905 23,740 7,870 12,708 50,141 972 3,190 22,585 ...........................25 1,462 4,720 7,999 223,211 65,483 112,922 22,834 7,928 12,592 49,659 176 3,530 22,299 .................July 2* 1,081 4,956 6,455 223,137 65,664 112,639 22,882 7,793 12,683 53,268 34 3,577 22,104 ........................... 9* 1,132 4,921 6,464 222,672 65,638 112,658 22,865 7,677 12,391 52,108 1,055 3,635 22,426 ...........................16* 1,117 4,946 6,188 223,091 65,574 113,290 23,006 7,691 12,040 47,729 1,852 3,740 22,218 ...........................23* 1,163 5,013 6,019 222,709 65,406 113,214 22,975 7,685 11,983 48,499 21 3,780 22,508 ;.........................30* New York City 1974 1,042 3,695 3,040 42,581 5,067 25,314 1,906 4,663 5,151 12,862 100 2,413 7,894 ................July 3 971 4,081 2,385 42,687 5,062 25,078 1,970 4,705 5,345 13,206 2,355 7,824 ...........................10 1,048 3,864 2,936 43,413 5,056 25,420 2,106 4,926 5,317 11,664 890 2,402 9,024 ...........................17 908 3,802 3,871 44,401 5,039 25,945 2,087 4,947 5,715 11,300 861 2,374 9,540 ...........................24 1,645 4,149 3,835 44,686 5,006 26,091 2,069 4,667 6,155 12,780 150 2,130 9,560 ............................31 1975 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 4 995 3,220 3,652 44,683 5,885 24,982 1,304 3,521 7,947 14,339 1,303 8,291 ...........................11 1,018 3,387 3,307 44,079 5,926 24,530 1,297 3,474 7,871 15,248 340 1,292 7,892 ...........................18 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 1,273 3,378 3.610 44,396 5,930 25,087 1,137 3,439 7,848 14,268 1,609 7,473 .................July 2* 896 3,651 2.610 44,517 5,933 25,221 1,168 3,337 7,885 16,452 1,511 7,624 ........................... 9* 894 3.670 2,818 44,380 5,886 25,411 1,186 3,257 7,690 15,388 546 1,579 7,900 ...........................16* 904 3.670 2,832 44,496 5,853 25,699 1,194 3,307 7,456 12,865 1,055 1,676 7,828 ...........................23* 943 3,712 2,727 44,162 5,806 25,511 1,262 3,289 7,338 13,733 1,709 7,866 ............................30* Outside New York City 1974 204 1,275 3,991 168,948 53,047 86,928 22,326 2,413 3,782 40,603 2,261 3,687 13,554 .................July 3 222 1,388 3,634 168,829 52,998 86,922 22,432 2,342 3,671 41,902 1,745 3,731 13,847 ...........................10 221 1,279 3,783 170,153 52,927 88,220 22,307 2,463 3,684 40,944 2,527 3,717 14,500 ...........................17 196 1,286 3,337 171,030 52,813 88,896 22,489 2,588 3,687 38,149 3,919 3,763 14,370 ............................24 230 1,282 3,582 171,546 52,596 89,582 22,381 2,679 3,743 37,495 2,631 3,739 14,601 ...........................31 1975 247 1,323 3,589 179,884 58,523 88,168 23,661 4.411 4,643 37,131 2,000 15,237 .................June 4 202 1,211 3,480 180,093 58,744 88,476 23,255 4,466 4,648 35,621 89 1,921 15,228 ...........................11 228 1,342 3,572 178,974 58,948 87,605 22,833 4.411 4,682 36,962 1,944 15,017 ...........................18 201 1,263 3,440 179,428 59,098 88,089 22,478 4,522 4,745 35,886 292 1,860 15,026 ...........................25 189 1,342 4,389 178,815 59,553 87,835 21,697 4,489 4,744 35,391 101 1,921 14,826 .................July 2* 185 1,305 3,845 178,620 59,731 87,418 21,714 4,456 4,798 36,816 34 2,066 14,480 ........................... 9* 238; 1,251 3,646 178,292 59,752 87,247 21,679 4,420 4,701 36,720 509 2,056 14,526 ...........................16* 213i 1,276 3,356 178,595 59,721 87,591 21,812 4,384 4,584 34,864 797 2,064 14,390 ...........................23* 22C1 1,301 3,292 178,547 59,600 87,703 21,713 4,396 4,645 34,766 21 2,071 14,642 ...........................30* For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ AUGUST 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 justed 9 ad­ justed i o Issued Issued Issued Issued foreign justed^ Total to to Total to to branches IPC’s others IPC’s others Large banks— Total 1974 July 3................... 5,040 33,251 292,796 376,420 98,406 80,848 56,228 24,620 3,177 10................... 5,033 33,231 292,787 375,768 101,219 81,129 56,190 24,939 2,804 1 7 5,035 33,103 293,749 376,290 100,952 82,973 57,542 25,431 4,583 2 4 5,030 33,101 292,360 374,969 99,577 84,791 58,605 26,186 4,711 31................... 5,068 33,397 297,160 380,439 101,655 85,491 59,109 26,382 3,314 1975 June 4................... 5,777 35,179 283,844 374,135 101,962 82,663 54,542 28,121 35,487 18,440 17,047 2,533 11................... 5,786 35,234 285,822 378,179 104,715 83,122 54,862 28,260 35,214 18,281 16,933 2,545 1 8 5,754 35,131 284,148 378,062 104,376 81,464 53,558 27,906 34,581 18,039 16,542 2,368 2 5 5,724 35,145 282,486 374,668 103,280 81,996 54,152 27,844 34,330 17,949 16,381 1,883 July 2 p................. 5,713 35,456 284,614 376,814 107,114 81,398 54,073 27,325 33,842 17,798 16,044 1,429 9 p................. 5,710 35,445 287,314 379,746 104,392 81,372 53,855 27,517 33,814 17,888 15,926 1,809 16 p................. 5,698 35,355 282,608 375,280 104,511 80,989 53,972 27,017 33,994 17,879 16,115 3,130 23 p................. 5,697 35,332 280,553 373,426 103,500 81,504 54,474 27,030 33,935 17,916 16,019 2,742 30*>................. 5,734 35,316 280,573 373,440 103,437 81,409 54,299 27,110 33,564 17,737 15,827 2,377 New York City 1974 July 3. 1,377 8,679 70,716 85,170 21,517 26,980 17,927 9,053 1,919 10. 1.375 8,673 70,601 84,813 22,335 27,116 17,774 9,342 1,574 17. 1.375 8,652 70,840 84,802 22,114 27,827 18,078 9,749 2,730 24. 1,374 8,654 70,452 84,600 21,854 28,672 18,557 10,115 3,656 31. 1,391 8,736 73,148 87,756 23,157 28,723 18,520 10,203 2,422 1975 June 4.. 1,695 9,260 69,559 84,984 22,077 27,815 17,507 10,308 8,131 4,867 3,264 1,663 11.. 1,705 9,264 69,375 85,567 22,038 27,922 17,556 10,366 8,279 4,895 3,384 1,856 18.. 1,679 9,251 69,473 86,652 23,029 27,408 17,119 10,289 8,120 4,813 3,307 1,620 25.. 1,664 9,247 69,123 85,717 22,787 27,596 17,350 10,246 8,083 4,816 3,267 1,225 July 2 p . 1,643 9,410 70,637 86.969 24,388 27,697 17,544 10,153 8,059 4.869 3,190 712 9 p. 1.650 9,396 71,336 87,467 22,300 27,919 17,791 10,128 8,067 4.870 3,197 1,052 16 p. 1.651 9,402 69,307 85,463 22,507 28,002 18,094 9,908 8,018 4,862 3,156 2,231 23 p. 1,653 9,382 68,639 84,714 22,681 28,373 18,462 9,911 7,820 4,804 3,016 1,901 30». 1,676 9,357 68,858 84.970 22,952 28,171 18,273 9,898 7,707 4,777 2,930 1,390 Outside New York City 1974 July 3. 3,663 24,572 222,080 291,250 76,889 53,868 38,301 15,567 1,258 10. 3,658 24,558 222,186 290,955 78,884 54,013 38,416 15,597 1,230 17. 3,660 24,451 222,909 291,488 78,838 55,146 39,464 15,682 1,853 24. 3,656 24,447 221,908 290,369 77,723 56,119 40,048 16,071 1,055 31. 3,677 24,661 224,012 292,683 78,498 56,768 40,589 16,179 892 1975 June 4. 4,082 25,919 214,285 289,151 79,885 54,848 37,035 17,813 27,356 13,573 13,783 870 11. 4,081 25,970 216,447 292,612 82,677 55,200 37,306 17,894 26,935 13,386 13,549 689 18. 4,075 25,880 214,675 291,410 81,347 54,056 36,439 17,617 26,461 13,226 13,235 748 25. 4.060 25,898 213,363 288,951 80,493 54,400 36,802 17,598 26,247 13,133 13,114 658 July 2p . 4,070 26,046 213.977 289,845 53,701 36,529 17,172 25,783 12,929 12,854 717 9p. 4.060 26,049 215.978 292,279 53,453 36,064 17,389 25,747 13,018 12,729 757 16*>. 4,047 25,953 213,301 289,817 52,987 35,878 17,109 25,976 13,017 12,959 899 23*. 4,044 25,950 211,914 288,712 53,131 36,012 17,119 26,115 13,112 13,003 841 30*. 4,058 25,959 211,715 288,470 53,238 36,026 17,212 25,857 12,960 12,897 987 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

AUGUST 1975 □ BUSINESS LOANS OF BANKS A 23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1975 1975 1975 1974 1975 1974 July July July July July 1st 2nd 30 23 16 9 2 July June May IV half half Durable goods manufacturing: Primary metals............................... 1,988 1,995 2,011 2,018 2,030 -35 18 -80 -21 39 77 11 140 Machinery....................................... 7.070 7,118 7,235 7,328 7,344 -357 -485 -201 -661 -653 -127 -1,314 222 Transportation equipment............ 3,527 3,543 3,570 3,537 3,482 17 -77 -53 -295 -7 365 -302 705 Other fabricated metal products.. 2,492 2,530 2,577 2,664 2,665 -231 -24 -138 -207 19 -178 -188 75 Other durable goods...................... 4.070 4,085 4,148 4,157 4,145 -71 -152 -155 -297 -421 -265 -718 247 Nondurable goods manufacturing: Food, liquor, and tobacco............ 3,080 3,154 3,128 3,168 3,253 -232 -238 -104 -517 -1,092 484 -1,609 984 Textiles, apparel, and leather........ 3,243 3,321 3,295 3,317 3,271 20 -1 -64 -136 -151 -725 -287 -618 Petroleum refining......................... 2,538 2,497 2,499 2,516 2,606 60 90 -40 279 -51 473 228 967 Chemicals and rubber................... 2,837 2,895 2,956 3,015 3,078 -285 -122 -73 -327 67 -55 -260 256 Other nondurable goods............... 2,219 2,235 2,245 2,253 2,248 -4 57 -38 12 -295 -135 -283 23 Mining, including crude petroleum and natural gas........................... 5,082 5,092 5,057 4,976 5,012 203 83 -59 114 -272 556 -158 846 Trade: Commodity dealers............... 1,126 1,069 1,069 1,081 1,121 21 -54 -172 -324 -648 703 -972 508 Other wholesale..................... 5,611 5,598 5,636 5,667 5,681 -9 -107 -107 -555 -553 349 -1,108 484 Retail...................................... 6,145 6,238 6,260 6,225 6,288 -164 -153 -73 -205 -193 -246 -398 -465 Transportation................................... 6,009 6,009 5,996 6,034 6,040 -54 18 -164 -173 -150 261 -323 283 Communication............................... 2,127 2,207 2,267 2,277 2,283 -17 -71 -91 14 -369 90 -355 -2 Other public utilities.......................... 7,100 7,030 7,108 7,132 7,231 -95 -75 -214 -405 -1,018 609 -1,423 1,697 Construction....................................... 5,573 5,552 5,551 5,520 5,516 12 -25 -32 -81 -541 -195 -622 36 Services................................................ 10,723 10,797 10,831 10,834 10,883 -111 -7 -170 -422 -698 171 -1,120 304 All other domestic loans................... 9,840 9,866 9,812 10,006 9,731 80 146 -426 -82 -290 387 -372 744 Bankers acceptances......................... 2,315 2,228 2,349 2,285 2,316 55 150 21 28 571 309 599 -56 Foreign commercial and industrial loans............................................ 4,880 4,851 4,819 4,705 4,714 349 223 -31 241 53 -239 294 -447 Total classified loans......................... 99,595 99,910100,419100,715 100,938 -848 -823 -2,464 -4,020 -6,653 2,669 -10,673 6,933 Comm, paper included in total clas­ sified loans1....................................... 203 Total commercial and industrial loans of large commercial banks.......... 120,666121,082121,729122,077122,326 -1,219 -844 -2,620 -3,868 -6,213 3,559 -10,081 8,354 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 July June May Apr. Mar. Feb. Jan. Dec. Nov. 1st 30 25 28 30 26 26 29 31 27 II I IV III half Durable goods manufactur­ ing : Primary metals................... 1,269 1,288 1,280 1,323 1,284 1,237 1,249 1,210 1,176 4 74 77 28 78 Machinery.......................... 3,864 3,977 4,269 4,302 4,071 4,117 4,138 4,145 4,049 -94 -74 249 610 -168 Transportation equipment. 1,725 1,740 1,726 1,705 1,672 1,712 1,737 1,673 1,586 68 -1 138 125 67 Other fabricated metal products.......................... 1,196 1,222 1,245 1,280 1,312 1,323 1,243 1,197 1,113 -90 115 131 112 25 Other durable goods.......... 2,058 2,090 2,122 2,210 2,251 2,256 2,288 2,391 2,361 -161 -140 123 161 -301 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,440 1,514 1,616 1,571 1,561 1,614 1,703 1,763 1,674 -47 -202 114 78 -249 Textiles, apparel, and leather............................. 1,133 1,095 1,075 1,091 1,158 1,083 1,124 1,145 1,179 -63 13 -6 23 -50 Petroleum refining............. 1,828 1,709 1,611 1,617 1,483 1,458 1,542 1,518 1,272 226 -35 421 134 191 Chemicals and rubber....... 1,666 1,762 1,784 1,814 1,846 1,812 1,839 1,878 1,818 -84 -32 100 41 -116 Other nondurable goods.. 1,139 1,143 1,114 1,126 1,130 1,119 1,221 1,235 1,170 13 -105 31 33 -92 Mining, including crude pe­ troleum and natural gas. 3,801 3,734 3,646 3,626 3,537 3,446 3,523 3,701 3,620 197 -164 362 209 33 Trade: Commodity dealers.. 152 148 140 142 150 153 169 155 171 -2 -5 16 -2 -7 Other wholesale........ 1,344 1,329 1,344 1,387 1,450 1,420 1,472 1,492 1,431 -121 -42 43 43 -163 Retail......................... 2,111 2,136 2,143 2,192 2,283 2,298 2,369 2,594 2,602 -147 -311 67 99 -458 Transportation....................... 4,399 4,425 4,424 4,492 4,524 4,505 4,455 4,550 4,379 -99 -26 201 -76 -125 Communication..................... 1,130 1,133 1,159 1,148 1,135 1,125 1,158 1,082 1,076 -2 53 53 -1 51 Other public utilities.............. 4,018 4,045 4,047 4,017 4,034 3,870 3,885 3,963 3,987 11 71 291 229 82 Construction.......................... 2,360 2,314 2,291 2,272 2,197 2,191 2,224 2,294 2,281 117 -97 22 142 20 Services................................... 5,155 5,140 5,246 5,352 5,430 5,370 5,320 5,532 5,417 -290 -102 182 77 -392 All other domestic loans .... 3,237 3,258 3,186 3,210 3,082 3,144 3,079 3,224 3,255 176 -142 102 105 34 Foreign commercial and in­ dustrial loans.................. 2,676 2,594 2,547 2,596 2,528 2,544 2,524 2,457 2,473 66 71 56 -147 137 Total loans............................. 47,701 47,796 48,015 48,473 48,118 47,797 48,262 49,199 48,090 -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 all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 DEMAND DEPOSIT OWNERSHIP □ AUGUST 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, Financial Nonfinancial All IPC business business Consumer Foreign other All insured commercial banks: 1970—Dec......................................................................................... 17.3 92.7 53.6 1.3 10.3 175.1 1971—Sept........................................................................................ 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 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar........................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 June........................................................................................ 18.6 106.6 67.3 2.0 11.8 206.3 Sept........................................................................................ 18.8 108.3 69.1 2.1 11.9 210.3 Dec......................................................................................... 19.1 116.2 70.1 2.4 12.4 220.1 1974—Mar........................................................................................ 18.9 108.4 70.6 2.3 11.0 211.2 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 June*..................................................................................... 19.4 115.1 74.8 2.3 10.6 222.2 Weekly reporting banks: 1971 Dec......................................................................................... 14.4 58.6 24.6 1.2 5.9 104.8 1972 Dec......................................................................................... 14.7 64.4 27.1 1.4 6.6 114.3 1973 Dec......................................................................................... 14.9 66.2 28.0 2.2 6.8 118.1 1974 July........................................................................................ 14.4 63.5 28.5 2.1 6.5 115.1 Aug......................................................................................... 14.1 62.6 28.0 1.9 5.8 112.5 Sept........................................................................................ 13.9 64.4 28.4 2.0 6.3 115.0 Oct.......................................................................................... 14.7 64.4 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 Apr......................................................................................... 15.0 63.3 30.1 2.2 6.5 117.0 May....................................................................................... 14.2 63.1 29.2 2.3 6.2 115.0 June*..................................................................................... 15.1 65.1 29.5 2.2 6.2 118.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec, 31, Class of Dec. 31, Dec. 31, June 30, Dec, 31, bank 1972 1973 1974 1974 bank 1972 1973 1974 1974 All commercial............................ 559 507 460 389 All member—Cont. Insured...................................... 554 503 457 387 Other large banks 1............ 69 58 63 69 National member.................. 311 288 265 236 All other member 1............. 313 294 267 206 State member........................... 71 64 65 39 All nonmember........................ 177 155 130 115 All member.................................. 381 352 330 275 172 152 127 112 Noninsured........................... 5 3 3 3 i Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on 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

AUGUST 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 By type of loan Date Total Commercial Real All and estate other industrial 1975—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 14......................... 4,612 2,808 200 1,604 21......................... 4,625 2,776 202 1,647 28......................... 4,665 2,820 201 1,644 June 4......................... 4,615 2,829 198 1,588 1 To bank’s own foreign branches, nonconsolidated non­ 11......................... 4,628 2,849 198 1,581 bank affiliates of the bank, the bank’s holding company (if 18......................... 4,631 2,849 198 1,584 not a bank), and nonconsolidated nonbank subsidiaries of 25......................... 4,667 2,895 196 1,576 the holding company. Note.—Series changed on Aug. 28, 1974. For a comparison July 2......................... 4,648 2,907 196 1,545 of the old and new data for that date, see p. 741 of the Oct. 9......................... 4,599 2,827 192 1,580 1974 Bulletin. Revised figures received since Oct. 1974 16......................... 4,484 2,755 189 1,540 that affect that comparison are shown in note 2 to this table 23......................... 4,470 2,734 188 1 ,548 in the Dec. 1974 Bulletin, p. A-27. 30......................... 4,500 2,763 186 1,551 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di- com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed 3 placed Total Own Bills Own eign United United bills bought acct. corr.6 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 1,8fc9 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—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 '1,756 '11,398 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 '1,109 '12,150 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 r560 '12,718 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 '325 '12,398 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 '263 '13,029 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 '235 '13,034 3,690 4,206 10,831 May.. 51,238 5,889 32,742 12,607 1,587 7,017 18,108 4,450 3,892 558 865 234 12,559 3,665 4,186 10,257 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 6 Beginning November 1974, the Board of Governors terminated the with investors. System guarantee on acceptances purchased for foreign official accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 INTEREST RATES o AUGUST 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Effective date Rate Effective date Rate Effective date 1974—Apr. 11. 934 1 - 0« 98/10- 1974—June 3. I li/ n 2 y B 4 -ll 6/10_1974—Oct. 28............ 10 1 3 1 4 % -11 - - - 1975—Feb. 3. 8 9 3 1 4 /2 -9 -9 - 3 9 4 14-- 15. 10b-10Vio- 7. 111/4-111/2 B- IH/2 4. 8 34-9-914" 19. 10 1 -I 0 O 14 1 / 10 - 10. II I 1 / 1 i 6 ­ /10 Nov. 4............ 1034-11.- 1 1 0 8 . . 8 8V 34 2 - - 9 8 b 3 4 b-9 10y4- 2 2 1 4 . . l 1 l 1 1 1/ /2 4 B -1 -1 1 1 1/ 3 2 4 B 11............ 10 1 v 1 i 1 - / 1 4 034- 24. 81/2B-83/4 Apr. 23. WArn-Who 11. Mar. 3. 814-81/2- 24. 10V4m- 25. 111/2 B-1134- 14............ 101/2-1034.- 5. 81/4-81/2 104/io— 118/10 11 6. 734-814-- Id/2 26. 111/2-1134.- 18............. 10-101/2- 81/2 25. 1014-lOVio- 118/10 103/4. 10. 734-8.-814 101/2b 28. 1134b-118/10 19............ 10-1014- 17. 734-8b 26. 104/10- 101/2- 18. 71/2-734.-8 101/2B- July 3. 1134m-118/10. 103/4. 24. 71/2--734-8 1034—11 12 25............ 10-1014- 25. 71/2--734 30. 101/2 B- 5, 118/10—1 2b 101/2- 31. 714-71/2.- 106/io— 9, 12B-1214 734 1034-11 23, 1034-12b- Dec. 2............ 934-10-1014 1214 -101/2- May 20. 714--7 i/i May 2. IOI/ 2 -IO 6 / 10 - 26. 7-714--7 Vi 1034 B-ll Aug. 20, 1034-12B 1975—Jan. 9............ 91/2-10- 3. IO6/10-1034 b IOI/4.- June 9. ey4-im-iy4 -11 Sept. 26, 1034-111/2- IOI/2 6. 106/1^ 1034- 1134-12b 13............ 91/2-934-10- July 18. 7-714--7 Vi 11b 101/4. 28. 714-71/2- 7. I 1 B Oct. 7. 1034-1 l^- 15............ 91/2-934- 10. 11-1 1^1 ll 34 b-12 10.-1014 13. 11!4 B-ll 4/l0 15, 103/4-111/4- 20............ 91/2-9 34 .-10 17. 1114-11-4/io in/z- 28............ 91/2--9 34-10 —11 Vi * 11%- 29............ 91/2--934 20 111/2b-1134 21 IO3/4-III/4i n iV y4i- 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 a majority of large “money market” banks to large busi­ range of rates charged by commercial banks on short-term loans to large nesses. 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. 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

AUGUST 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 bills 6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1 -year issues 7 days months months2 on new yield on new yield bill (mar­ Other7 issue issue ket yield)6 1967......................... 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968......................... 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5! 59 1969......................... 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970......................... 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971......................... 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.11 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—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 July............... 6.32 6.44 6.02 6.40 6.10 6.164 6.13 6.492 6.50 6.64 7.07 7.72 Week ending— 1975—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 July 5....... 6.25 6.34 5.81 6.19 6.31 6.009 5.98 6.262 6.28 6.47 6.89 7.62 12 6.28 6.45 6.00 6.38 6.06 6.203 6.06 6.510 6.39 6.50 6.91 7.65 19 .... 6.28 6.43 6.00 6.35 5.93 6.045 6.05 6.344 6.41 6.53 6.91 7.67 26....... 6.38 6.48 6.03 6.52 6.14 6.247 6.27 6.626 6.65 6.82 7.27 7.79 Aug. 2........ 6.43 6.53 6.18 6.49 6.25 6.318 6.28 6.719 6.69 6.86 7.35 7.86 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 □ AUGUST 1975 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ ratine group price ratio price ratio Period United Total l States ( t l e o r n m g ) ­ Total i Aaa Baa New ce R n e t ­ ly Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970.............. 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971.............. 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972.............. 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 ............ 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974............. 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1974—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 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—Jan . 6.68 6.89 6.39 7.45 9.36 9.45 9.55 8.83 10.62 9.19 9.52 10.10 8.41 5.07 Feb... 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 Mar... 6.73 6.70 6.28 7.25 9.35 9.38 9.28 8.67 10.29 9.05 9.25 9.67 8.04 4.42 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 9.25 9.32 9.45 8.77 10.40 9.29 9.40 9.81 8.34 4.02 July.. 6.89 7.07 6.39 7.60 9.41 9.42 9.43 8.84 10.33 9.26 9.37 9.81 8.24 4.02 Week ending- 1975—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 July 5. 6.89 7.01 6.30 7.55 9.62 9.30 9.44 8.82 10.37 9.26 9.38 9.81 8.04 3.95 12. 6.89 7.03 6.33 7.56 9.38 9.45 9.44 8.84 10.35 9.26 9.38 9.82 8.16 3.92 19. 6.87 7.08 6.40 7.60 9.53 9.57 9.43 8.82 10.33 9.25 9.37 9.80 8.22 3.93 26. 6.90 7.17 6.50 7.70 9.25 9.33 9.43 8.85 10.32 9.25 9.37 9.80 8.33 4.12 Aug. 2. 6.92 7.07 6.40 7.58 9.37 9.35 9.44 8.86 10.31 9.26 9.37 9.82 8.45 4.19 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

AUGUST 1975 □ SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43= 10) (Dec. 31, 1965 = 50) change total index ( G t l e U o o r . n m v S g t . ) ­ . S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e ( 1 A 9 1 3 7 u 0 1 0 3 g , ) = . NYSE AMEX 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 197 1 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 15,381 4,234 197 2 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 197 3 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 197 4 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1974—Jul y 55.97 71.9 58.5 82.82 93.54 35.63 35.37 43.27 48.35 31.01 27.50 44.23 77.92 12,459 1,610 Aug....... 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Sept....... 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 Oct........ 55.69 72.7 55.9 69.44 77.57 33.70 33.80 36.62 39.81 27.26 26.76 39.28 66.78 16,396 1,880 Nov....... 57.80 72.6 56.3 71.74 80.17 35.95 34.45 37.98 41.24 28.40 27.60 41.89 63.72 14,341 1,823 Dec........ 58.96 68.6 56.1 67.07 74.80 34.81 32.85 35.41 38.32 26.02 26.18 39.27 59.88 15,007 2,359 1975—Ja...........n 59.70 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 July....... 58.09 68.5 56.6 92.49 103.84 38.04 43.67 49.54 54.96 32.88 32.98 52.51 93.28 20,076 2,750 Week ending— July 5, 58.14 69.4 56.5 94.65 106.27 39.44 44.89 50.57 56.12 33.12 33.58 53.84 92.94 19,338 2,555 12. 58.11 69.0 56.6 94.24 105.87 39.04 44.05 50.43 56.05 33.37 33.22 53.57 93.78 22,456 3,400 19. 58.24 68.3 56.8 94.45 106.05 38.92 44.48 50.65 56.24 33.93 33.46 53.80 96.13 22,756 3,344 26, 58.02 67.2 56.6 90.69 101.76 36.92 43.22 48.67 53.91 32.41 32.66 51.62 93.90 18,632 2,414 Aug. 2, 57.88 68.4 56.5 88.49 112.75 36.07 42.23 47.37 52.46 31.37 32.06 49.66 89.84 15,572 1,828 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 May................................... '6,461 '5,441 1,020 '5,260 963 172 44 9 13 1,858 395 1,420 June................................... '6,377 '5,340 1,037 '5,160 991 172 34 8 12 2,072 395 1,360 July.................................... '6,028 '5,005 1,023 '4,840 978 158 33 7 12 2,091 402 1,391 Aug.................................... '5,705 '4,752 953 '4,590 912 156 29 6 12 2,119 429 1,382 Sept.................................... '5,167 '4,243 924 '4,090 881 148 31 5 12 2,060 437 1,354 Oct..................................... '5,066 '4,150 916 '4,000 872 145 32 5 12 2,024 431 1,419 Nov.................................... '5,074 '4,183 891 '4,040 851 139 29 4 11 2,054 410 1,447 Dec..................................... '4,906 '4,050 856 '3,910 815 137 30 3 11 2,064 411 1,424 1975—Jan..................................... 4,934 '4,166 848 '4,030 806 134 29 2 13 1,919 410 1,446 Feb..................................... 5,099 '4,339 830 '4,200 783 136 34 3 13 1,897 478 1,604 Mar.................................... 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 May................................... 5,746 4,927 819 4,780 779 140 27 7 13 1,883 520 1,705 June................................... 5,220 5,070 146 4 519 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 □ AUGUST 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUN1S (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil­ End of period credit balance E pe n r d i o o d f l d io o o n f l­ s 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t of (m d i o l l l l i a o r n s s ) lars) l 40.3 37.4 22.4 6,538 1974—June. '5,160 4.0 5.0 7.7 12.6 21.8 49.1 July...................... 40.2 36.5 23.2 6,695 July.. '4,840 4.0 4.8 7.9 13.3 22.2 47.9 39.9 34.0 26.0 6,783 Aug.. '4,590 3.5 4.0 6.6 11.2 18.4 56.3 40.7 31.2 27.0 7,005 Sept.. '4,090 3.5 3.9 6.1 10.2 18.0 58.3 40.9 35.1 24.0 7,248 Oct... '4,000 4.6 5.5 9.4 16.8 27.3 36.4 40.0 34.6 25.3 6,926 Nov.. '4,040 4.2 5.1 8.5 14.8 24.4 42.8 41.1 32.4 26.5 7,013 Dec.. '3,910 4.3 4.6 8.8 13.9 23.0 45.4 1975—Jan....................... 41.1 39.3 19.8 7,185 1975—Jan. . '4.030 5.6 7.3 13.5 24.6 28.1 21.2 Feb....................... 42.2 40.1 17.8 7,303 Feb.. '4,200 5.9 7.2 14.6 25.4 28.5 18.4 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 June..................... 45.9 43.1 11.0 7,875 June. 5,070 7.4 9.9 18.3 32.7 20.4 11.4 Note.—Special miscellaneous accounts contain credit balances that 1 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 .S vt . . S g l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i T e e a a t s n o b i n e e e t i r d s a l r v i a l ­ e l De it p s os­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1971............... 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 19723............. 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973............... 73,231 3,871 2,957 926 21,383 1,968 2,314 106,651 96,496 2,566 7.589 1,250 598 405 1,008 3,261 1974............... 74,891 3,812 2,555 930 22,550 2,167 2,645 109,550 98,701 2,888 7,961 664 418 232 726 2,040 1974—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 May... 75,440 4,593 3,616 1,137 25,579 2,077 2,811 115,252 104,056 3,080 8,116 955 383 300 573 2,211 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

AUGUST 1975 □ SAVINGS INSTITUTIONS A 31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l Total U St n a i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks M ga o g r e t s ­ e R st e a a t l e P lo o a li n c s y O as t s h e e ts r 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—Apr............................... 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............................. 257,304 11,635 4,330 3,549 3,756 120,178 95,352 24,826 82,734 7,860 21,056 13,841 June............................. 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.............................. 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.............................. 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.............................. 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............................... 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.............................. 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............................... 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 23,110 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 Apr............................... 273,523 12,374 4,608 3,719 4,047 126,256 99,725 26,531 87,638 8,782 23,459 15,014 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 i n m e t v i c e e e u s n s r 1 t t ­ ­ Cash Other l a ia s T b s o e il t t i a s 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 d y3 p L ro o i c a n 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 4 t n s f g 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—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 May....................... 257,930 30,635 25,611 314,176 262,726 19,127 19,362 4,056 8,905 12,557 June®..................... 261,365 30,967 25,880 318,212 268,944 18,990 18,925 4,393 6,960 12,296 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. ?. 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 □ AUGUST 1975 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt, Trea­ financ­ deficit debt Agency accounts 1 Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes 2 ing S is p s e u c e ia s l Other balance Fiscal year: 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 1975*................... 280,921 325,133 -44,212 58,953 -1,069 8,112 685 50,853 -1,570 2,372 -5,840 Half year: 1973—July-Dee.. 124,256 130,362 -6,106 11,756 478 5,376 845 6,014 -2,202 -319 -2,429 1974—Jan.-June. 140,676 138,032 2,647 5,162 426 8,297 295 -3,004 -1,215 1,089 231 July-Dee.. P139,807 153,399 -13,591 18,429 -646 2,840 150 14,794 -3,228 248 -4,183 1975—Jan.-June?5 141,114 171,734 -30,621 40,524 -423 5,272 835 36,059 4,798 2,124 -1,657 Month: 1974—Jun e 31,259 24,172 7,087 385 29 4,178 121 -3,886 2,711 239 -252 July........... 20,939 24,411 -3,472 1,109 -126 -858 198 1,644 -2,705 -658 -1,534 Aug.......... 23,620 25,408 -1,787 6,447 -56 4,133 -25 2,283 -1,012 83 -1,425 Sept........... 28,377 24,712 3,666 -326 -167 -1,311 250 569 3,244 797 -194 Oct............ 19,633 26,460 -6,827 -1,242 -242 -2,053 -152 721 -6,445 -338 -677 Nov............ 22,292 24,965 -2,673 5,139 -17 653 -31 4,500 816 96 -915 Dec........... 24,946 27,442 -2,496 7,300 -38 2,276 -90 5,077 2,874 268 561 1975—Ja..............n 25,020 28,934 -3,914 1,475 -23 -2,173 -42 3,667 -58 319 508 Feb........... 19,975 26,200 -6,225 5,571 -306 1,224 -495 4,535 -2,359 -132 -801 Mar.......... 20,134 27,986 -7,852 9,949 5 -1,216 -79 11,249 3,115 285 3 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 11 ,418 -6 3,296 -44 8,556 -5,757 -732 349 June*....... 31,741 30,827 914 5,030 -55 4,131 276 567 -9491 537 -1,893 Selected balances Treasury operating balance Borrowing from the public. Memo: End Debt of pe o ri f od B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 4 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S G p I e n o c v v ia e t, l s L t a m e c s c e s o : n u ts n t o s f 1 S n L p o e e te s c s i s a : 2 l E T q o u ta a l ls: s c p p o G r o N r i n o v p o s v a s w o t t .— e . r - e 5 d issues Other 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 88 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 1975*........... 5,773 1,473 343 7,589 533,188 10,943 123,033 24,192 (6) 396,906 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—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 6 475,344 11,895 114,063 25,471 (6) 347,706 68,243 Aug.. 3,304 2,049 91 5,443 481,792 11,831 118,196 25,446 349,980 69,951 Sept.. 3,211 5,384 92 8,687 481,466 11,664 116,885 25,696 350,549 73,068 Oct.., 789 1,381 71 2,241 480,224 11,422 114,832 25,544 351,270 75,343 Nov., 1,494 1,571 3,066 485,364 11,404 115,485 25,513 355,770 75,706 Dec.. 3,113 2,745 70 5,928 492,664 11,367 117,761 25,423 360,847 76,459 1975—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... r7,036 981 521 '8,538 528,158 10,998 118,902 23,915 396,339 75,140 June*. 5,773 1,473 343 7,589 533,188 10,943 123,033 24,192 396,906 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 net outlays of off-budget Federal agencies, accrued interest Management and Budget’s presentation of the budget. payable on public debt securities, deposit 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

AUGUST 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. total paign Pay­ Self- ceipts • Fund1 roll empl. taxes Fiscal year: 197 2 208,64983,200 25,67914,14394,73734,926 2,76044,C 2,032 4,357 3,43753,91415,477 3,287 5,436 3,633 197 3 232,22598,093 27,01721,866 103,24639,045 2,89352,505 2,371 6,051 3,61464,54216,260 3,188 4,917 3,921 1974r................... 264,932112,064 2830,81223,952 118,95241,744 3,12562,878 3,008 6,837 4,051 76,78016,844 3,334 5,035 5,369 1975 '................... 280,921 122,004 34,29934,014122,32245,746 5,12071,782 3,416 6,764 4,461 86,42916,542 3,666 4,589 6,747 Half year: 1973—July-Dee.. 124,25652,964 6,207 999 58,172 16,589 1,49429,965 201 2,974 1,96735,109 8,966 1,633 2,514 2,768 1974—Jan.-Juner 140,67659,100 2824,60522,953 60,78225,155 1,631 32,919 2,807 3,862 2,08441,671 7,878 1,701 2,521 2,601 July-Dee.. 139,80761,377 7,099 1,016 67,460 18,247 2,01634,418 254 2,914 2,18739,774 8,761 1,958 2,284 3,341 1975—Jan.-June* 141,11460,627 27,20132,99854,86227,499 3,10437,364 3,162 3,850 2,27446,655 7,781 1,708 2,305 3,406 Month: 1974—Jun e 31,259 10,611 4,077 46214,231 9,269 237 4,757 281 18 329 5,386 1,423 301 370 517 July.......... 20,939 10,227 957 37810,806 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.......... 28,3771 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 9010,799 6,458 190 4,982 "14 89 356 5,441 1,489 307 341 301 1975—Ja..............n 25,020 10,252 5,366 13215,487 1,745 557 4,802 223 245 402 5,673 1,351 307 385 629 Feb........... 19,975 10,957 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 Mar.......... 20,134 9,617 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 6,25816,065 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 1974—June*....... 31,741 9,960 4,543 1,445 13,05910,211 658 5,552 373 86 407 6,419 1,455 292 390 543 Budget outlays5 Gen­ Nat­ Educa­ Gen­ Rev­ eral ural Com- tion, eral enue Undis- Na­ sci­ Agri­ re­ Com­ mun. man­ Health Govt., shar. trib. Period Total tional Intl. ence, cul­ sources, merce and power, and Vet­ Inter­ law and off­ de­ affairs space, ture envir., and region. and wel­ erans est en­ fiscal setting fense and and transp. devel­ social fare force., assist­ re­ tech. energy opment serv. and ance ceipts6 justice Fiscal year: 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 '-16,652 1975*.................. 325,133 88,289 4,215 4,157 2,009 8,020 15,546 4,482 15,061 136,763 16,599 31,035 6,341 6,695 -14,080 19768.................. 358,900 94,100 5,500 4,600 2,000 10,300 15,700 6,100 16,800151,800 17,100 34,400 6,500 7,300 -20,000 Month: 1975—Mar.. 27,986 7,435 503 379 347 723 1,4 1519 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 '11,968 1,468 2,607 240 -873 June*.... 30,827 7,905 567 259 196 887 1,285 461 1,635 14,588 1,416 2,535 469 20 -1,596 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 Mid-Session Review of the 1976 Budget, May accounts. 30, 1975. 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 $6,800 million for fiscal 1976 are not included. 4 Deposits of earnings by F. R. Banks and other miscellaneous receipts. 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 □ AUGUST 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S ss p u e e c s i a 5 l debt 1 Total Total Bills C c e a r t t e if s i­ 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—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 July.. 538.2 416.3 323.7 133.4 153.6 36.7 2.3 90.4 22.2 66.3 120.9 1 Includes non-interest-bearing debt (of which $623 million on July 31, 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 n u .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t 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—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 20.3 485.4 139.0 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 21.4 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 May*............. 528.2 140.9 85.6 301.7 65.7 3.4 6.9 13.1 29.6 65.1 21.4 68.4 28.0 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

AUGUST 1975 o 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 e - a 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—May 31........................................................ 314,886 164,160 131,541 32,619 100,926 26,834 14,549 8,418 June 30........................................................ 315,606 163,891 128,569 35,322 101,973 26,830 14,509 8,403 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—May 31................................................ 20,114 2,183 393 1,790 7,491 4,209 4,271 1,960 June 30................................................ 20,475 2,317 479 1,838 7,626 4,309 4,233 1,990 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—May 31................................................ 85,622 46,603 38,287 8,316 28,925 6,994 1,375 1,725 June 30................................................ 84,749 45,953 37,239 8,714 28,440 7,137 1,419 1,801 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—May 31................................................ 209,150 115,374 92,861 22,513 64,510 15,631 8,903 4,733 June 30................................................ 210,382 115,621 90,851 24,770 65,907 15,384 8,857 4,612 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—May 31......................................... 51,065 18,309 8,527 9,782 27,359 4,487 621 290 June 30......................................... 53,335 19,643 9,241 10,402 28,415 4,394 639 244 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—May 31......................................... 2,276 501 224 277 1,055 369 235 117 June 30......................................... 2,435 519 212 307 1,150 406 243 116 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—May 31......................................... 5,537 793 450 343 1,534 1,637 1,164 408 June 30........................................ 5,542 762 421 341 1,549 1,707 1,170 354 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—May 31......................................... 5,869 3,285 2,420 865 2,174 263 101 46 June 30 ......................................... 5,136 2,871 2,010 861 1,969 159 89 48 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—May 31......................................... 2,212 619 325 294 1,184 271 119 20 June 30 ........................................ 2,212 569 285 284 1,239 265 114 25 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—May 31......................................... 8,089 4,397 3,661 736 1,716 676 831 469 June 30......................................... 8,022 4,290 3,466 824 1,700 717 838 476 All others: 1972—Dec. 31......................................... 101,249 61,014 55,506 5,508 23,171 8,906 5,290 2,868 1973—Dec. 31......................................... 101,261 64,606 55,493 9,113 22,076 6,372 5,189 3,023 1974—Dec. 31......................................... 118,253 77,210 69,330 7,880 25,760 6,664 5,479 3,141 1975—May 31......................................... 134,100 87,470 77,254 10,216 29,487 7,927 5,831 3,384 June 30......................................... 133,700 86,967 75,216 11,751 29,885 7,735 5,764 3,348 Note.—Direct public issues only. Based on Treasury Survey of banks, and 732 insurance companies combined, each about 90 per cent; Ownership. (2) 458 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, 473 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES □ AUGUST 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—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 June............................. 5,732 3,745 1,484 372 132 801 1,689 1,336 1,906 1,217 Week ending— 1975—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 July 2....................... 6,246 4,001 1,951 213 82 854 1,755 1,319 2,317 881 9....................... 4,189 3,070 943 105 71 568 1,152 1,040 1,430 999 16....................... 3,959 2,790 986 110 73 655 1,154 903 1,247 727 23....................... 4,329 3,200 945 122 62 565 1,014 1,072 1,677 800 30....................... 5,335 3,770 1,349 141 76 752 1,608 1,277 1,698 689 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a i t e 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 g e t c e o ie u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it w r y k w E h ls e e r ­ e C t o io rp ns o r 1 a­ o A th l e l r 1974—June '............. 587 447 51 73 16 1,200 1974—June........... 2,477 241 884 268 1,083 Julyr.............. 254 219 -52 85 3 908 July........... 1,710 6 596 216 892 Aug.r............. 2,432 2,361 215 337 66 1,041 Aug............ 4,138 988 1,248 548 1,354 Sept.r............ 3,033 2,692 329 328 59 1,190 Sept............ 4,709 1,312 1,247 480 1,671 Oct................. 2,870 2,149 430 260 31 1,445 Oct............. 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 Dec............ 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 June............... 6,768 5,923 748 100 -3 790 June.......... 7,682 1,955 1,979 737 3,012 Week ending— Week ending— 1975—May 7........ 4,773 4,573 457 -136 -121 806 1975—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 June 4........ 6,268 5,215 852 159 41 884 June 4... 7,054 1,427 2,001 460 3,166 11 , 6,471 5,794 553 117 7 780 11... 7,262 2,039 2,224 698 2,301 18 , 7,550 6,788 644 86 33 822 18... 8,950 2,733 2,347 914 2,956 25........ 6,745 5,999 740 31 -25 778 25... 7,665 1,896 1,983 737 3,050 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

AUGUST 1975 □ FEDERALLY SPONSORED CREDIT AGENC a ; ING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, JUNE 30f ! Cou­ Amount Cou­ Amount noun pon (millions Agency, and date of issue pon (millions Agency, and date of issue illion rate of dollars) and maturity rate of dollars) and maturity lollar Federal National Mortgage Banks for cooperatives Association—Cont. Bonds: 7.95 300 Debentures: 1/2/75 -7/1/75. . .. 493 7.88 500 10/13/70 - 9/10/75........ 350 2/3/75 - 8/4/75 478 7.15 400 3/12/73 -9/10/75............ 650 3/3/75-9/2/75........ 407 6.50 350 3/10/72 - 12/10/75........ 500 4/1/75 - 10/1/75... 353 7.05 600 9/10/73 - 12/10/75.......... 300 5/1/75 - 11/3/75... 374 9.10 700 3/11/71 - 3/10/76............ 500 6/2/75 - 12/1/75... 439 8.70 400 6/12/73 - 3/10/76........... 400 10/1/73 -4/4/77... 200 7.38 300 6/10/71 -6/10/76........... 250 12/2/74- 10/1/79.. 201 8.75 300 2/10/72 -6/10/76........... 450 9.20 600 9/10/74 -6/10/76........... 700 7.20 600 11/10/71 - 9/10/76......... 300 Federal intermediate 7.45 300 6/12/72-9/10/76........... 500 credit banks 7.80 500 12/10/74 - 9/10/76.......... 200 Bonds: 9.55 700 7/12/71 - 12/10/76.......... 300 10/1/74-7/1/75. 769 8.60 600 12/11/72- 12/10/76........ 500 1/3/72 -7/1/75.. 302 9.55 500 6/10/74-12/10/76.......... 600 11/4/74-8/4/75. 758 7.20 500 3/13/62 - 2/10/77.......... 198 12/2/74-9/2/75. 783 8.05 500 9/11/72 - 3/10/77........... 500 1/2/75 - 10/1/75. 563 8.70 500 3/11/74 - 3/10/77........... 400 2/3/75 - 11/3/75 . 824 6.95 200 12/10/70 - 6/10/77........ 250 3/3/75-12/1/75. . 897 7.15 300 5/10/71 -6/10/77........... 150 3/1/73 - 1/5/76. . 261 8.80 600 12/10/73 - 6/10/77......... 500 4/1/75 - 1/5/76.. ,079 6.75 300 9/10/71 -9/12/77........... 300 5/1/75 -2/2/76. . 909 7.45 300 9/10/73 - 9/12/77........... 400 6/2/75 - 3/1/76.. 840 9.15 700 7/10/73 - 12/12/77......... 500 7/2/73 - 1/3/77.. 236 9.38 400 10/1/73 - 12/12/77......... 500 7/1/74 -4/4/77.. 321 7.60 500 6/10/74-3/10/78............ 650 1/2/74 - 1/3/78. . 406 9.10 500 3/10/75-3/10/78.............. 350 1/2/75 -1/2/79. . 410 8.65 600 6/12/73 - 6/12/78........... 600 9.45 600 3/11/74 -9/11/78........... 550 8.65 500 10/12/71 - 12/11/78.... 300 Federal land banks 8.75 400 7/10/74- 12/11/78......... 450 Bonds: 9.50 500 12/10/73 - 3/12/79......... 500 2/15/72 -7/21/75.... 425 8.15 500 9/10/73 -6/11/79........... 300 4/22/74-7/21/75___ 300 7.50 500 9/10/74-6/11/79........... 600 7/20/71 - 10/20/75... 300 7.75 350 6/12/72-9/10/79.......... 300 10/23/73 - 10/20/75.. 362 7.05 300 12/10/74 -9/10/79........ 700 4/20/72- 1/20/76.... 300 7.80 200 12/10/71 - 12/10/79..., 350 7/22/74 - 1/20/76.... 650 6.60 200 6/10/75 - 12/10/79........ 650 2/21/66 - 2/24/76... 123 8.65 400 2/10/72- 3/10/80.......... 250 1/22/73 -4/20/76.... 373 7.30 183 3/10/75-3/10/80............ 750 4/22/74-4/20/76.... 400 7.38 400 4/1/75 -4/10/80............ 300 7/20/66 - 7/20/76... 150 8.75 300 6/10/74-6/10/80.......... 600 1/21/74-7/20/76. ... 360 7.38 400 2/16/73 - 7/31/80.......... 1 4/23/73 - 10/20/76... 450 2/16/73 -7/31/80.......... 9 4/21/75 - 1/20/77.... 750 10/1/73 -9/10/80.......... 400 4/22/74 - 4/20/77.... 565 1/16/73 - 10/30/80........ 5 7/20/73 - 7/20/77... . 550 12/11/72 - 12/10/80___ 300 10/20/71 - 10/20/77.. 300 7.05 400 6/29/72- 1/29/81.......... 156 10/21/74- 1/23/78. .. 546 6.15 350 3/12/73 - 3/10/81.......... 350 2/20/63 - 2/20/73-78. 148 8.60 140 4/18/73 - 3/10/81.......... 26 5/2/66 - 4/20/78.... 150 7.75 150 3/21/73 - 5/1/81............ 18 1/20/75 -4/20/78. ... 713 7.15 150 3/21/73 - 5/1/81............ 2 7/20/72 - 7/20/78... 269 1/21/71 - 6/10/81........ 250 7/22/74 - 7/20/78.... 350 8.20 300 9/10/71 -9/10/81.......... 250 10/23/73 - 10/19/78.. 550 9/10/74-9/10/81.......... 300 2/20/67 - 1/22/79.... 285 3/11/74-12/10/81........ 250 1/21/74- 1/22/79.... 300 7/10/74 - 3/10/82.......... 300 9/15/72 -4/23/79.... 235 6/28/72-5/1/82............ 58 2/20/74 - 7/23/79.... 389 2,140 2/10/71 - 6/10/82.......... 250 10/23/72 - 10/23/79.. 400 9/11/72 - 9/10/82.......... 200 1/22/73 - 1/21/80.... 300 4.38 248 12/10/73 - 12/10/82.... 300 7/20/73 -7/21/80.... 250 7.40 250 3/11/71 -6/10/83.......... 200 10/21/74- 10/20/80. . 400 6/12/73 - 6/10/83.......... 300 2/23/71 -4/20/81___ 224 11/10/71 -9/12/83........ 250 7/22/74 - 7/20/81 265 3.58 53 6/10/75 - 12/12/83........ 300 1 /20/75 - 1 /20/82___ 400 5.48 5 4/12/71 -6/11/84.......... 200 4/20/72-4/20/82.... 200 5.85 71 12/10/74-9/10/84........ 300 4/21/75 -4/20/82.... 300 5.92 35 12/10/71 - 12/10/84... 250 4/23/73 - 10/20/82... 239 5.50 10 3/10/75-3/11/85............ 500 10/23/73 - 10/20/83.. 300 5.49 21 3/10/72 - 3/10/92........ 200 6/23/75 - 7/22/85___ 391 5.74 81 6/12/72-6/10/92.......... 200 8.63 200 12/11/72- 12/10/97-82.. 200 not 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 □ AUGUST 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—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 '20,754 3,025 2,677 29,870 28,420 3,741 '3,439 9,303 8,703 14,641 13,021 Apr... 17,528 6,836 98 '20,738 2,651 2.660 29,931 28,257 3,650 3,329 9,520 '9,061 14,917 13,571 May.. 17,145 5,745 98 '19,463 2,708 2*656 29,977 27,714 3,499 '2,982 9,763 '9,231 15,180 13,571 June.. 16,803 6,259 134 19,396 2,831 2,653 30,136 28,237 3,371 2,948 10,031 '9,357 15,437 13,961 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAAl 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 tie ti s l­ 4 H in o g u s s­ V a a e n i t s d e * 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 2,068 197 2 23,653 13,305 9,332 959 57 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 197 3 23,968 12,257 10,632 1,022 '57 4,212 '9,505 10,249 22,397 4,311 1,458 5,654 2,639 197 4 24,315 13,563 10,212 461 79 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 1974—June.. 2,171 1,075 856 234 6 580 721 864 2,079 220 62 664 334 July. . 1,466 859 600 7 540 158 761 1,456 314 58 154 Aug.. 1,109 576 529 4 141 400 565 1,067 228 85 257 15 Sept.. 1,705 869 832 4 448 641 611 1,669 251 11 380 21 Oct... 2,865 1,707 1,153 5 328 974 1,558 2,738 343 110 236 110 Nov.. 2,487 1,110 1,374 3 689 1,005 789 2,403 698 4 866 9 Dec... 1,500 761 717 22 222 558 700 1,475 297 64 424 53 1975--Jan.'. 2,367 1,364 997 6 372 702 1,293 2,332 710 49 644 172 Feb.'. 2,327 1,704 618 5 877 582 861 2,287 432 206 417 105 Mar'. 2,090 1,283 805 2 376 673 1,045 2,035 463 94 471 35 Apr.r. 2,391 1,484 900 7 368 876 1,143 2,311 405 61 733 38 May r. 2,863 1,857 1,001 5 811 1,196 852 2,769 419 210 559 25 June.. 2,947 1,699 1,246 2 923 1,092 918 2,733 420 159 756 36 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

AUGUST 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 . S a 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' '37,837 '31,551 25,337 '6,214 2,253 '4,033 1974—Apr.. '3,060 '2,260 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.. '3,257 '2,702 2,086 '616 228 327 Aug.. 2,668 2,341 2,042 299 107 218 Sept.. '1,617 '1,204 897 '307 126 '287 Oct... '4,609 '3,778 3,423 355 196 635 Nov.. '3,746 '3,346 3,016 '330 93 307 Dec.., '3,505 '3,052 2,172 880 152 301 1975—Jan... '5,379 '4,790 3,657 '1,133 235 '354 Feb... '4,526 '3,904 3,201 '703 173 449 Mar.. '5,368 '4,471 '3,971 '500 253 644 Apr.., 4,407 3,131 2,771 360 347 929 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1971.............................................. 9,551 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 '1,851 '956 983 22 8,872 3,964 3,710 222 '6,241 587 1974—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 '257 93 62 1 318 300 242 53 '773 65 Aug.................................... 601 4 38 62 14 862 216 364 462 44 Sept.................................... 186 2 46 '45 40 5 384 296 331 18 '217 48 Oct..................................... 725 3 102 29 306 1,414 695 439 36 791 69 Nov.................................... 1,697 2 '116 100 336 739 225 62 31 397 44 Dec.................................. 1,456 196 180 23 14 435 194 150 25 817 15 1975—Jan..................................... '1,898 3 '179 '74 84 '765 507 '933 5 '930 Feb................................... '1,631 44 '65 60 '75 '1,471 486 '124 1 '539 32 Mar.................................... '2,368 111 '271 74 83 828 679 '317 '604 '34 Apr.................................... 1,473 233 289 211 67 794 614 352 209 156 9 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 □ AUGUST 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 II................ 9,637 2,048 7,589 7,847 1,584 6,263 1,790 465 1,326 Ill............... 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,759 82 IV............... 12,272 2,871 9,401 10,086 2,004 8,082 2,186 866 1,319 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, >-90 900 800 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- 906 324 -11 363 -37 -35 2,172 827 675 76 1,662 20 1,921 -12 698 213 -13 12 1,699 1,038 1,080 -7 877 82 III............... 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- 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—June.. 337 276 61 40,040 4,461 35,579 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 July. . 442 352 90 37,669 4,609 33,060 1965.............. 4,359 1,962 2,395 35,220 1,803 33,417 Aug... 446 339 127 35,106 4,953 30,153 Sept... 499 292 207 31,985 5,078 26,907 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Oct... 816 311 505 37,115 5,652 31,463 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Nov... 619 335 284 36,366 5,804 30,562 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Dec... 736 411 325 35,777 5,637 30,140 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 1975—Jan... 1,067 428 639 3,7407 3,889 33,518 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 Feb... 889 470 419 39,330 4,006 35,324 1971.............. 5,145 4,751 394 55,045 3,038 52,007 Mar. . 847 623 224 40,449 3,870 36,579 Apr.. . 808 791 17 42,353 3,841 38,512 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 May.. 677 735 r —58 '43,832 *•3,879 39,953 1973.............. 4,358 5,651 -1,261 46,518 4,002 42,516 June.. 704 811 -107 45,538 3,643 41,895 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

AUGUST 1975 □ BUSINESS FINANCE A 41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a t l i s l p o o u i n w t m a ­ l p ­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a t n a l i l s p o o u n i w t m a ­ l p ­ ances 1 ances 1 1968.............. 87.6 39.9 47.8 23.6 24.2 46.a 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 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties 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.............................. 203.6 529.6 53.3 11 .0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 1972.............................. 221.3 573.5 57.5 9.3 3.4 240.0 215.2 48.1 352.2 4.0 230.4 15.1 102.6 1973—1......................... 229.5 590.6 58.1 11.2 3.2 245.3 222.5 50.2 361.1 4.1 231.7 17.1 108.2 II....................... 235.4 608.2 59.0 10.0 2.9 255.4 230.1 50.8 372.7 4.5 241.7 15.0 111 .6 Ill..................... 239.5 625.3 58.9 9.7 3.0 264.4 238.0 51.3 385.8 4.4 250.2 16.5 114.7 IV...................... 242.3 643.2 61.6 11.0 3.5 266.1 246.7 54.4 401 .0 4.3 261 .6 18.1 117.0 1974—1......................... 250.1 666.2 59.4 12.1 3.2 276.2 258.4 56.9 416.1 4.5 266.5 20.6 124.5 II....................... 253.9 685.4 58.8 10.7 3.4 289.8 269.2 53.5 431.5 4.7 278.5 19.0 129.1 Ill..................... 259.5 708.6 60.3 11.0 3.5 295.5 282.1 56.1 449.1 5.1 287.0 22.7 134.3 IV...................... 261.5 712.2 62.7 11.7 3.5 289.7 288.0 56.6 450.6 5.2 287.5 23.2 134.8 1975—1......................... 260.4 698.4 60.6 12.1 3.2 281.9 285.2 55.4 438.0 5.3 271.2 21.8 139.8 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s t her n C i o ca m ti m on u s ­ Other i A (S . . R A . . ) 197 1 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 197 2 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 197 3 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 197 4 112.40 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 III. 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 III. 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 4.8 114.57 IP 28.63 5.42 6.46 .94 .81 .54 .63 4.38 .75 8.72 113.39 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 □ AUGUST 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 67,598 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 61,978 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 Multifamily1............................................ 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 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 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 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 2,119 872 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 23,118 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 4,111 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

AUGUST 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 e u r 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 p d 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—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 4,773 1,920 2,854 203 38 42 969 June.. 30,015 19,282 8,498 326 557 6,549 i Includes conventional loans not shown separately. For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC Note.—Data from FNMA and FHLMC, respectively. became operational. Holdings and transactions cover participations as For FNMA: Holdings include loans used to back bond issues guaranteed well as whole loans. Holdings include loans used to back bond issues by GNMA. Commitments include some multifamily and nonprofit guaranteed by GNMA. Commitments cover the conventional and Govt.hospital loan commitments in addition to 1- to 4-family loan commitments underwritten loan programs. accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plan (Program 18). TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms1 Yields (per cent) in insured primary market loans—Yield Period in private C ra o c te n e 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 th l a a o s r e u 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—June............... 8.65 1.25 26.3 76.9 39.7 30.1 8.85 9.25 9.46 July................ 8.75 1.28 26.1 74.4 40.5 29.6 8.96 9.40 9.85 Aug................ 8.87 1.32 26.4 75.3 40.2 29.5 9.09 9.60 10.30 Sept................ 8.97 1.30 26.1 74.8 42.4 31.1 9.19 9.80 10.38 Oct................. 8.95 1.37 26.7 74.7 42.3 30.7 9.17 9.70 10.13 Nov 9 04 1.40 26.2 73.6 41.3 30.2 9.27 9.55 Dec................. 9.13 1.44 27.5 75.5 42.4 31.3 9.37 9.45 9.51 1975—Jan................. 9.09 1.51 26.7 73.8 43.2 31.6 9.33 9.15 8.99 Feb................. 8.88 1.44 26.8 76.5 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... ... 8.71 1 .53 26.5 76.4 44.5 33.4 8.96 9.00 May............... 8.63 1 .63 27.0 75.5 43.4 32.2 8.90 9.05 9.16 June®............. 8.74 1.37 26.6 76.8 43.1 32.6 8.96 9.00 9.06 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 □ AUGUST 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 Feb. 24 Mar. 10 Mar. 24 Apr. 7 Apr. 21 May 5 May 19 June 2 June 16 June 30 July 14 July 28 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................. 36.2 99.2 460.5 551.6 470.9 525.5 165.6 172.5 73.4 358.7 333.2 415.8 Accepted............................... 23.8 60.1 321.4 277.2 247.3 280.4 115.0 80.4 38.6 246.9 174.9 247.7 Conventional loans Offered1................................. 20.0 34.4 60.7 99.8 79.2 69.8 46.4 51.2 28.5 67.5 71.4 56.5 Accepted............................... 9.1 22.1 35.8 44.6 51.3 43.9 38.4 27.1 15.7 47.3 35.8 34.5 Average yield (per cent) on short­ term commitments 2 Govt.-underwritten loans........ 8.87 8.78 8.85 8.98 9.13 9.29 9.25 9.14 9.06 9.07 9.10 9.20 Conventional loans.................. 9.04 8.96 9.00 9.13 9.26 9.43 9.41 9.26 9.21 9.18 9.17 9.26 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding require­ paid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) 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 10.4 10.5 FHA......................................................... 8.4 8.2 7.8 7.6 7.4 r7.2 7.2 VA............................................................ 3.3 3.3 3.3 3.4 3.3 3.2 3.3 Mutual savings banks................................. 28.6 28.4 28.2 27.9 27.8 27.5 27.6 FHA......................................................... 15.7 15.5 15.3 15.1 15.0 14.8 14.8 VA............................................................ 12.9 12.9 12.9 12.8 12.8 12.7 12.8 Savings and loan assns............................... FHA......................................................... VA............................................................ } 30.1 } 29.7 } 29.8 } 29.7 1 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 59.9 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 o N f u l m oa b n e s r ( c m o ( a i d m m l o l m i l o o la u i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t r n e a t c r t r e e e a s n c t t t ) (y M rs a . t /m ur o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C (p a t p e io r it n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co er n s c t e a n n t t 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 10.0 197 4 1,166 2,603.0 2,232 9.47 21/3 74.3 10.1 1.29 10.6 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

AUGUST 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 loans1 loans Retail Credit outlets cards2 1965. 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 1966. 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 1967. 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 1968. 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 1969. 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5,936 1,437 6,921 1970.. 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 6,163 1,805 7,456 1971.. 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 6,397 1,953 8,164 1972.. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 1973.. 180,486 147,437 51,130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 1974 190,121 156,124 51,689 52,009 8,162 44,264 33,997 12,979 8,012 2,122 10,884 1974—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 10,483 188,023 155,328 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 June......... 186,099 152,668 50,927 49,519 7,973 44,249 33,431 12,470 7,361 2,088 11,512 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit V------------ 1965..................... 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 1966..................... 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 1967..................... 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 1968..................... 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 1969..................... 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 1970..................... 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 1971..................... 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 1972..................... 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 1973..................... 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 1974..................... 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—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 June......... 81,429 70,475 17,560 11,482 7,375 7,977 6,446 4,403 2,375 12,857 10,954 See Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT □ AUGUST 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—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 June............ 37,828 12,571 3,508 4,288 807 16,654 26,478 23,186 3,292 17,887 276 17,611 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—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 i8.69 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 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.07 18.90 20.57 June.......... 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July........... 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.21 19.24 20.78 Aug........... 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept........... 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.42 19.30 20.93 Oct............ 11.53 11.94 13.28 13.60 17.17 12.97 17.78 Nov........... 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 21.16 Dec............ 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan............. 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 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 r20.86 Apr............ 11.44 11.78 13.22 13.55 17.17 13.07 17.58 May.......... 11.39 11.57 13.11 13.41 17.21 13.09 17.65 13.57 19.63 20.75 June.......... 11.26 12.02 13.10 13.40 17.10 13.12 17.67 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

AUGUST 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 196 7 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 196 8 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 196 9 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 197 0 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 197 1 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 197 2 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 197 3 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 197 4 166,478 42,756 71,077 4,650 47,995 69,554 41,809 24,510 30,605 1974—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 3,6§5 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 3,229 160 2,637 Nov__ 12,609 3,062 5,700 321 3 526 5,390 2,823 863 2,533 Dec.... 12,702 3,205 5,798 294 3; 405 5,012 3,240 901 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 June... 13,959 3,752 5,976 373 3,858 5,772 3,316 2,141 2,730 Repayments 196 7 83,988 26,534 27,847 2,202 27,405 29,549 26,681 10,337 17,421 196 8 91,667 27,931 31,270 2,303 30,163 32,611 28,763 11,705 18,588 196 9 99,786 29,974 34,645 2,457 32,710 36,470 30,981 13,193 19,142 197 0 107,199 30,137 40,721 2,506 33,835 40,398 31,705 14,354 20,742 197 1 115,050 31,393 44,933 2,901 35,823 45,395 31,730 16,033 21,892 197 2 126,914 34,729 49,872 3,218 39,095 50,796 35,259 18,117 22,742 197 3 144,978 39,452 59,409 3,577 42,540 60,014 38,066 20,358 26,540 197 4 157,791 42,197 66,598 3,840 45,156 66,539 40,127 21,861 29,264 1974—June 13,301 3,577 5,615 335 3,774 5,564 3,405 1,835 2,497 July . 13,310 3,563 5,610 320 3,817 5,541 3,513 1,819 2,437 Aug. 12,882 3,443 5,444 309 3,686 5,463 3,166 1,851 2,402 Sept. 13,412 3,604 5,700 279 3,829 5,808 3,371 1,723 2,510 Oct.. 13,224 3,470 5,499 321 3,934 5,542 3,250 1,962 2,470 Nov. 13,009 3,423 5,561 325 3,700 5,671 2,981 1 ,860 2,497 Dec., 13,516 3,668 6,037 341 3,470 5,803 3,308 1,822 2,583 1975—Jan.. 13,260 3,534 5,549 336 3,841 5,669 3,331 1,827 2,433 Feb.. 13,228 3,605 5,632 350 3,641 5,747 3,134 1,824 2,523 Mar. 13,234 3,772 5,708 357 3,397 5,924 2,971 1 ,782 2,557 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 June. 13,537 3,728 5,799 358 3,652 5,774 3,307 1,806 2,650 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—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 June............... 422 24 177 15 206 -2 9 335 80 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. □ AUGUST 1975 MARKET GROUPINGS (1967 = 100) 1967 pro­ 1974 1974 1975 por­ aver­ Grouping tion age July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r May June* July* Total index..................................... 100.0 124.8 125.5 125.2 125.6 124.8 121.7 117.4 113.7 111.2 110.0 109.9 109.8 110.3 110.8 Products, total................................... 62.21 123.1 124.0 123.5 123.6 122.9 121.4 118.7 115.4 113.7 112.4 112.9 113.0! 113.5 113.9 Final products................................. 48.95 121.7 122.8 122.1 122.6 122.3 120.9 118.2 114.9 U3.3 ,i 112.2 112.6 113.2 113. 114.3 Consumer goods......................... 28.53 128.8 130.0 129.8 128.8 128.2 126.3 123.4 120.1 118.8 118.2 119.6 120.6 122.0 123.4 Equipment.................................. 20.42 111 .7 113.0 111.4 113.8 114.0 113.2 110.7 107.8 105.3 103.9 103.0 102.8 102.4 101.6 Intermediate products.................... 13.26 128.3 127.8 128.6 127.6 125.3 123.0 120.5 117.6 115.21 112.7 113.4 112.4 112.4 112.6 Materials............................................ 37.79 127.4 128.0 128.5 129.3 128.1 122.1 114.8 110.5 107.4 105.9 105.2 104.6 105.1 105.6 Consumer goods Durable consumer goods.................... 7.86 127.9 131.6 131.8 129.1 126.5 119.7 110.1 104.0 101.0 103.1 107.8 110.2 112 115.5 Automotive products..................... 2.84 110.0 113.5 114.9 111.6 114.7 102.1 87.5 80.3 78.2 86.8 93.6 97.6 102.9 105.8 Autos........................................... 1.87 94.9 101.5 103.1 99.6 108.4 91.0 69.8 62.6 58.9 73.1 82.4 86.3 93.2 97.7 Auto parts and allied goods.... .97 139.0 136.9 137.6 134.5 126.9 123.6 121.5 114.4 115.5 113.2 115.2 119.3 121.6 121.1 Home goods...............................%... 5.02 138.0 141.8 141.2 139.0 133.2 129.7 123.0 117.5 114.0 112.3 115.9 117.4 118.4 121.1 Appliances, TV, and radios.......... 1.41 132.0 139.3 139.1 133.2 120.9 115.3 102.5 94.4 89.0 85.0 96.7 101.1 104.6 Appliances and A/C.............. .92 148.8 151.7 156.2 150.2 139.5 131.9 119.8 108.0 104.8 99.1 114.2 118.4 118.3 TV and home audio............... .49 Carpeting and furniture................ 1.08 153.5 155.3 157.1 155.4 151.8 144. 143.8 135.1 132.3 127.9 127.8 128.2 129.1 Misc. home goods......................... 2.53 134.7 137.3 135.8 135.3 132.2 131.4 125.5 123.0 120.1 121.0 121.4 121.7 121.9 123.5 Nondurable consumer goods.............. 20.67 129.2 129.4 129.1 128.7 128.9 128. 128.4 126.3 125.5 124.1 124.0 124.5 125.5 126.4 Clothing.......................................... 4.32 109.0 108.6 106.4 106.0 104.5 103.1 102.0 95.0 94.5 90.9 89.2 92.0 Consumer staples........................... 16.34 134.5 134.9 135.1 134.8 135.4 135.6 135.5 134.5 133.6 132.7 133.3 133.1 133.5 133.6 Consumer foods and tobacco... 8.37 125.4 125.5 124.4 124.4 125.2 126.2 125.3 123.3 123.2 120.7 122.7 122.0 121.6 121.7 Nonfood staples......................... 7.98 144.0 144.7 146.5 145.7 146.1 145.3 146.2 146.4 144.5 145.3 144.3 144.8 145.9 146.1 Consumer chemical products. 2.64 158.4 154.6 159.0 157.7 159. 155.2 159.1 160.6 157.1 158.2 157.6 157.6 158.0 Consumer paper products.... 1.91 125.2 124.4 129.5 130.9 128.5 127.4 126.7 122.0 121.9 120.9 118.4 122.8 123.1 Consumer fuel and lighting.. 3.43 143.8 148.4 146.2 144.6 145.4 147.9 147.3 149.2 147.2 149.0 148.6 147.3 149.0 Residential utilities............. 2.25 153.7 157.8 155.4 156.2 155.5 159.3 159.0 159.9 159.7 163.1 161.9 160.9 Equipment Business equipment..................... 12.74 129.4 131.3 128 132.3 132.0 131.0 127.1 122.3 119.3 117.0 115.4 115.0 114.4 112.7 Industrial equipment.............. 6.77 128.7 130.3 129.6 132.0 130.9 129.3 126.7 122.9 120.4 118.8 116.4 115.3 113.9 112.1 Building and mining equip.. 1.45 136.0 136.2 136.5 139.8 141.2 140.1 137.4 138.4 137.0 137.7 132.3 131.7 127.8 125.6 Manufacturing equipment.. 3.85 121.7 124.9 123.1 124.4 122.5 119.4 116.5 111. 109.4 106.6 105.6 105.0 103.5 101.9 Power equipment................ 1.47 139.9 138.4 139.6 144.2 142.8 144.5 142.6 136.6 132.1 131.8 128.9 126.2 127.0 125.3 Commercial, transit, farm equip.. . 5.97 130.3 132.5 127.6 132.8 133.2 132.9 127.6 121.6 118.0 115.1 114.2 114.7 115.0 113.4 Commercial equipment.......... 3.30 141.1 143.5 134.0 143.3 144.1 143.1 139.3 135.2 130.4 127.8 123.2 121.5 121.2 119.1 Transit equipment.................. 2.00 109.6 111.4 109.3 111.8 111.2 109.8 102.9 91.8 91 .5 88.8 92.2 98.6 101.0 100.3 Farm equipment..................... .67 138.7 141.4 150.5 144.1 145 151 143.7 143.8 135.9 130.2 135.7 129.0 126.2 Defense and space equipment.............. 7.68 82.3 82.6 82.7 83.1 84.1 83.7 83.4 83. 82.4 82.1 82.4 82.5 82.3 83.3 Military products............................. 5.15 81.2 81.4 81.5 82.3 82.5 81.8 81.3 81.5 80.7 80.3 80.7 81.6 81 .0 82.3 Intermediate products Construction products.......... 5.93 129.6 128.2 128.0 127.4 123.5 121.3 118.3 115.7 112.1 109.1 110.1 107.6 106.8 106.8 Misc. intermediate products. 7.34 127.3 127.5 129.2 127.8 126.8 124.2 122.5 119.2 118.4 115.6 116.1 116.3 116.9 Materials Durable goods materials.... 20.91 127.3 125. 128.1 129.2 129.3 123.5 114.2 110.3 107.0 104.7 101.6 99.6 99.0 98.4 Consumer durable parts. 4.75 112.1 117.2 117.5 117.2 115.2 104.1 91.7 83.7 82.1 84.7 86.0 87.1 89.4 92.0 Equipment parts............. 5.41 123.8 120.6 125.8 125.0 124.0 122.2 118.3 116.9 112.0 108.7 104.6 102.1 97.8 95.8 Durable materials nec... 10.75 135.9 132.3 133.9 136.6 138.3 132.7 122.9 118.8 115.4 111.4 106.9 103.8 104.0 102.4 Nondurable goods materials........... 13.99 128.5 131.1 130.4 129.3 126.8 122.1 116.2 109.2 105.7 105.3 107.9 109 111.7 113.9 Textile, paper, and chem. mat.. 8.58 139.8 143.6 143.2 142.2 138.1 131.1 122.9 112.9 108 106.2 110.4 112.4 116.2 118.9 Nondurable materials n.e.c....... 5.41 110.6 111.3 110.0 108.9 108.9 107.8 105.7 103.3 101.1 103.9 104.0 104.2 105.0 105.8 Fuel and power, industrial............ 2.89 122.6 128.0 123.5 129.0 126.4 112.7 113.0 117.8 118.2 118.0 117.5 119.5 119.0 120.7 Supplementary groups Home goods and clothing. 9.34 124.6 126.4 125.0 123.8 120.0 117.4 113.2 107.1 105.0 102.3 103.6 105.6 107.7 111.0 Containers.......................... 1.82 139.4 142.1 140.4 136.7 131.5 127.6 120.3 126.1 119.9 122.3 124.2 123.5 126.8 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. 286.3 448.1 446.9 447.1 445.7 439.0 426.7 416.4 410.1 405.1 409.6 407.0 412.1 412.7 Final products............ 221.4 346.6 345.0 346.1 346.5 341.3 331.0 322.3 317.7 315.3 319.0 318.0 323.0 323.2 Consumer goods 156.3 235.0 235.1 233.1 233.7 228.9 222.3 216.4 213.7 213.2 217.6 216.7 221.3 223.0 Equipment............... 65.3 111.6 109.9 112.8 112.7 112.4 108.8 105.9 103.9 102.2 101.4 101.4 101.6 100.3 Intermediate products. 64.9 101.2 102.1 101.0 99.4 97.4 95.8 94.3 92.3 90.0 90.5 89.4 89.3 89.8 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ INDUSTRIAL PRODUCTION: S.A. A 49 INDUSTRY GROUPINGS (1967 = 100) 1 p 9 r 6 o 7 ­ 1974 1974 1975 Grouping p ti o o r n ­ a a v g e e r­ July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r May June® July® 88.55 124.4 125.2 125.2 125.5 124.6 120.9 116.1 111.7 109.2 107.7 107.9 107.8 108.5 108.9 Durable............................................ 52.33 120.7 121.6 121.6 122.1 121.6 117.9 112.2 108.2 104 103.5 103.3 102.4 102.6 102.2 Nondurable...................................... 36.22 129.7 130.8 130.4 130.5 128.9 125.4 121.9 117.0 115.6 113.7 114.8 115.9 116.9 118.6 Mining and utilities............................. 11.45 127.3 128.9 127.4 128.7 128.5 125.9 125.7 127.0 127.3 128. 128.1 127.0 126.1 126.5 Mining.............................................. 6.37 109.3 110.2 107.3 109.2 110.5 105.0 104.4 107.0 108.6 108.9 108.5 107.0 106.1 106.9 5.08 149.9 152.4 152.6 153.1 151.2 152.3 152.6 153.0 150.9 154.0 153.1 152.3 151.5 151.0 Durable manufactures Primary and fabricated metals............ 12.55 127.5 126.9 126.5 127.2 127.6 124.4 116.0 112.4 107.7 105.1 103.2 99 98.9 98.1 Primary metals................................. 6.61 124.1 123.2 121.9 123.0 126.0 121.0 108.6 107.2 102.1 98.1 95.0 89.8 87.7 87.2 Iron and steel, subtotal................ 4.23 119.9 119.9 120.7 119.1 123.9 117.7 107.9 110.6 105.0 103.1 99.4 90.1 87.0 86.8 Fabricated metal products.............. 5.94 131.4 131.1 131.5 132.0 129.6 128.2 124.1 118.2 113 112.9 112.4 110.9 111.1 110.4 Machinery and allied goods................. 32.44 116.3 117.3 117.8 118.8 118.4 114.9 109.6 105.4 102.4 101.5 101.9 101.6 102.2 101.5 Machinery......................................... 17.39 128.1 129.9 130.5 132.5 131.1 128.9 124.8 119.6 115.6 112.2 110. 109.0 108.2 107.2 Nonelectrical machinery.............. 9.17 133.8 131.1 136.4 137.8 137.4 135.1 132.5 126.7 123.6 119.3 116.9 113.7 111 .9 110.2 Electrical machinery.................... 8.22 125.2 128.4 123.7 126.4 124.0 121.7 116.3 111.5 106.6 104.3 104.0 103. 103.9 104.0 Transportation equipment.............. 9.29 96.9 98.7 99.9 100.4 102.1 93.7 83.6 78.9 77.1 81.0 84.7 87.6 90.9 90.4 Motor vehicles and parts............ 4.56 113.2 117.3 117.8 118.6 123.0 107.1 86.4 78.2 77.6 85.4 93.1 95.0 101 100.9' Aerospace and misc. trans. eq... 4.73 81.1 80.9 82.6 82.8 81.9 80.9 80.9 79.5 76.6 76.7 76.6 80.4 81 80.2 Instruments....................................... 2.07 143.9 146.7 146.7 144.9 142.0 142.3 139.5 139.1 134.2 130.6 131.1 129.7 130.7 130.7 Ordnance, private and Govt........... 3.69 86.1 87.2 87.1 87.5 87.2 86.6 86.6 86.2 86.9 86.7 86.7 86.1 86.3 86.6 4.44 123.6 125.5 123.4 120.6 117.8 113.7 111.0 109.6 104.6 102.6 104.8 105.6 106.2 106.6 Lumber and products..................... 1.65 120.1 121.6 121.5 116.6 109.3 105.2 101.3 99.9 99.6 99.8 104.1 108.0 108.2 Clay, glass, and stone products.... 2.79 125.7 127.7 124.6 123.0 122.9 118.8 116.9 115.3 107.8 104.2 105.4 104.2 105.1 Furniture and miscellaneous................. 2.90 136.1 139.7 140.1 138.8 136.7 129.0 128.4 120.0 119.6 118.7 117.6 119.7 120.2 120.7 Furniture and fixtures..................... 1.38 126.9 131.6 130.5 129.4 125.5 120.5 120.4 110.6 110.6 106.7 105.6 109.6 109.6 Miscellaneous manufactures........... 1.52 144.4 147.1 148.8 147.5 146.9 136.9 135.7 128.9 128.0 129.7 128.5 129.0 129.7 Nondurable manufactures 6.90 108.9 108.1 107.4 106.5 105.1 101.9 96.3 88.9 89.6 87.5 90.4 92.6 93.7 Textile mill products....................... 2.69 122.7 125.3 124.3 121.9 119.1 112.8 102.9 95.6 93.3 96.8 100.4 103.7 106.2 Apparel products............................. 3.33 105.4 102.7 102.5 102.5 102.8 100.1 98.0 94.0 92.6 86.4 88.2 89.6 Leather and products...................... .88 77.3 75.7 73.4 74.2 70.6 74.7 69.7 66.1 66.7 63.5 68.0 69.8 72.4 Paper and printing............................... 7.92 121.0 122.4 121.0 122.7 120.8 115.7 112.3 108.2 106.6 104.2 102.4 103.9 105.2 106.4 Paper and products......................... 3.18 134.0 136.1 132.2 135.3 133.9 124.3 116.1 114.3 109.5 104.5 105.8 105.8 108.2 Printing and publishing................... 4.74 112.3 113.4 113.4 114.4 111.9 110.0 109.8 104.1 104.7 104.0 100.2 102.6 103.2 i 03! 0 Chemicals, petroleum, and rubber.... 11.92 151.7 153.9 154.4 154.7 152.4 146.5 141.6 136.5 132.4 130.2 131.0 132.5 134.2 136.5 Chemicals and products.................. 7.86 154.3 155.8 156.7 158.3 155.9 148.3 143.1 139.0 134.6 133.6 132.8 135.6 136.7 138.5 Petroleum products......................... 1.80 124.0 127.9 125.8 121.9 125.4 127.0 125.8 126.8 123.7 120.1 120.2 118.7 121.9 123.5 Rubber and plastics products......... 2.26 164.4 167.2 169.0 168.6 161.8 155.7 148.9 135.4 132.0 126.8 133.5 132.7 135.0 Foods and tobacco................................ 9.48 124.8 124.8 124.8 124.3 123.7 123.8 123.5 120.0 121.3 120.0 122.4 122.0 121.7 122.7 Foods................................................ 8.81 126.2 126.6 126.3 125.7 124.8 125.4 125.7 121.2 122.3 121.3 122.9 123.4 123.2 124.2 Tobacco products............................. .67 106.4 101.5 104.2 106.0 110.3 103.8 96.2 104.7 108.4 102.6 115.9 103.8 Mining Metal, stone, and earth minerals......... 1.26 117.2 113.5 109.9 115.4 121.3 120.7 117.9 119.1 116.2 113.4 113.3 106.2 101.1 105.8 Metal mining................................... .51 129.2 120.3 110.0 130.5 141.4 136.8 134.7 133.8 131 .1 125.4 125.8 114.8 110.2 Stone and earth minerals................ .76 109.1 108.8 109.9 105.0 107.5 109.8 106.4 109.0 106.1 105.1 104.7 100.4 95.0 Coal, oil, and gas................................. 5.11 107.3 109.4 106.7 107.7 107.8 101.2 101.1 103.9 106.8 107.7 107.4 107.2 107.4 107.1 Coal.................................................. .69 105.1 115.6 99.4 112.1 110.3 67.6 85.3 111 .3 117.5 117.4 112.2 119.1 120.5 120.7 4.42 107.7 108.4 107.9 107.1 107.4 106.4 103.6 102.9 105.0 106.1 106.6 105.3 105.4 104.9 Utilities 3.90 159.5 162.7 162.8 162.4 161.2 162.9 163.0 162.5 161.1 165.4 164.1 163.0 Gas...................................................... 1.17 117.9 Note.—Data for the complete year of 1972 are available in a pamphlet Published groupings include series and subtotals not shown sepa- Industrial Production Indexes 1972 from Publications Services, Division rately. Figures for individual series and subtotals are published in the of Administrative Services, Board of Governors of the Federal Reserve monthly Business Indexes release. System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 BUSINESS ACTIVITY; CONSTRUCTION a AUGUST 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con- ricul- Period tion struc- tural Total Whole­ Total in mfg. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales3 sumer com­ Total Mate­ Manu­ output tracts ment— ment modity Inter­ rials factur­ = 100) Total i Con­ Equip­ mediate ing Total sumer ment goods 1955.. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956.. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957.. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958.. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959.. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960.. 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961.. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962.. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963.. 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964.. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965.. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966.. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967.. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968.. 105.7 105. 105. 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969.. 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970.. 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 1971. 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 1972. 115.2 113. 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973. 125. 123.4 121 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 1974. 124. 123.1 121.7 128.8 111.7 128.3 127.4 124.4 78.9 168.6 118.9 102.1 156.6 147.7 160.1 1974—June.. 125.8 124.0 122.6 130.2 112.0 128.9 128.8 125.6 580.1 166.0 119.1 103.2 157.9 170 146.9 155.7 July.. 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 ] 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.. 125.6 123 122.6 128.8 113.8 127.6 129.3 125.5 j 187.0 119.7 102.5 162.0 176 151.7 167.2 Oct... 124. 122.9 122.3 128 114.0 125.3 128.1 124.6 | 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.., 117.3 118.7 118 123.4 110.7 120.5 114.8 116.1 J 176.0 118.0 96.3 152.6 171 155.4 171.5 1975—Jan... 113.7 115 114.9 120.1 107 117.6 110.5 111 .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 \ r68.2 135.0 116.5 90.8 143.0 179 157.2 171 .3 Mar.. 110.0 112 112.2 118.2 103.9 112.7 105.9 107.7 j j 153.0 116.0 89.9 142.8 176 157.8 170.4 Apr. . 109.9 112.9 112.6 119.6 103.0 113.4 105.2 107.9 189.0 115.9 89.6 144.1 179 158.6 172.1 J M un ay e. . , , 1 1 0 1 9 0 . . 8 3 1 1 1 13 3 . . 5 0 1 1 1 1 3 3. . 8 2 1 1 2 2 0 2 . . 6 0 1 1 0 0 2 2 . . 8 4 1 1 1 1 2 2 . . 4 4 1 10 0 5 4 . . 1 6 1 1 0 0 7 8 . . 8 5 I> CDyOfl . J^ 1 1 7 82 4. .0 0 1 1 1 1 6 5 . . 1 8 8 89 9 . . 9 8 1 1 4 4 5 4. . 1 6 1 18 8 3 5 1 1 6 59 0 . . 3 6 1 1 7 7 3 3 . . 7 2 July., 110.8 113.9 114.3 123.4 101.6 112.6 105.6 108.9 115.9 89.6 147.8 175.7 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 Juner July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total construction contracts 1........ 99,304 93,076 8,220 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 6,574 9,598 9,143 9,324 By type of ownership: Public........................................ 26,563 32,209 2,943 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 2,182 2,768 2,875 3,891 Private 1.................................... 72,741 60,867 5,278 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 4,393 6,830 6,268 5,432 By type of construction: Residential building 1.............. 45,696 34,174 3,419 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 2,316 3,029 3,073 3,116 Nonresidential building........... 31,534 33,859 2,880 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 2,402 2,987 2,877 3,169 Nonbuilding............................. 22,074 25,042 1,921 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 1,856 3,582 3,193 3,040 Private housing units authorizedr.. 1,820 1,074 1,115 1,040 928 853 811 770 837 689 701 677 837 r912 926 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, Note.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im­ McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data may differ from annual totals because adjustments cent for total and private construction, in each case, and by 8 per cent for are made in accumulated monthly data after original figures have been residential building. published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ 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 In tr d ia u l s­ m C e o r m cia ­ l b O u t i h ld er - Other Total tary way de m v a e n e l d n o t p­ Other 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 14,126 1968 86,626 59,021 30,565 28,456 6,021 7,761 4.382 10,292 27,605 808 9,321 1,973 15,503 1969 93,728 65.404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 197 0 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 15,489 197 1 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,077 93,893 54,288 39,605 4.676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 16,496 197 3 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 18,520 197 4 134,814 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—June.. 136,889 98.404 48,269 50,135 8,027 16,425 6,034 19,649 38,485 1,169 11,475 3,310 22,531 July... 137,879 97,924 48,875 49,049 7,158 15,953 5,915 20,023 39,955 1,131 12,518 2,581 23,725 Aug.. . 134,425 96,225 48,208 48,017 7,616 15.053 5,691 19,657 38,200 978 11,968 2,568 22,686 Sept.. 133,028 94,728 46,005 48,723 7.677 15,668 5,776 19,602 38,300 1,173 13,334 2,886 20,907 Oct__ 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.. 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.. . 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... 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... 128,909 88,614 38,153 50,461 8,734 15,249 5,844 20,634 40,295 1,440 Mar.. 124,352 85,040 37,257 47,783 7,981 13,289 5.382 21,131 39,312 1,520 Apr r.. 122,686 83,382 36,694 46,688 7,375 12,677 5,682 20,954 39,304 1,435 May.. 120,239 83,084 37,402 45,682 8,044 12,405 5,276 19,957 37,155 1,241 June p. 121,232 84,213 38,802 45,411 8,166 11,787 5,328 20,130 37,019 1,138 1 Includes religious, educational, hospital, institutional, and other build­ Note.—Census Bureau data; monthly series at seasonally adjusted ings. 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-or- 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) 196 6 1,165 779 386 217 461 196 21.4 22.8 196 7 1,292 844 448 240 487 190 22.7 23.6 196 8 1,508 899 608 1.320 859 461 318 490 218 24.7 24.6 196 9 1,467 811 656 1,399 807 591 885 350 536 413 448 228 25.6 27.0 197 0 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 197 1 2,052 1,151 901 1,706 1,014 692 1.254 505 749 497 656 294 25.2 25.9 197 2 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 27.6 28.3 197 3 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 197 4 1,337 450 1,692 931 760 1,193 518 676 371 501 407 35.9 36.2 1974—June.. 1,533 1,000 534 1,805 1,053 752 1,480 581 899 398 524 436 35.1 35.0 July.. 1,314 920 394 1,655 934 721 1,443 578 864 340 509 430 36.8 35.3 Aug... 1.156 826 329 1,592 919 674 1,406 570 836 316 466 425 35.7 35.5 Sept. . 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.. . 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 1,156 522 634 219 411 409 37.9 36.6 Mar... 985 775 210 1,305 734 571 1,113 520 593 199 463 396 38.9 36.5 Apr.r. 980 762 218 1,191 744 447 1,085 515 570 194 574 388 39.2 36.7 May.. 1,129 886 243 1,220 785 435 1,069 520 549 224 585 382 39.9 36.9 June p 1,070 862 208 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 □ AUGUST 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 ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e . r l ) Total Employed1 Unem­ U (p n e e m ra r m e t c e n p e 2 l t 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—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 July................ 153,585 56,540 95,102 92,916 85,078 81,628 3,450 7,838 8.4 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ Tr ti a p o n u n s b p a l o i n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 1971.......................................................... 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973......................................................... 76,833 20,054 638 4,028 4,646 16,665 4,075 12,986 13,742 1974......................................................... 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 seasonally adjusted 1974—July.............................................. 78,479 20,169 675 3,920 4,693 17,107 4,157 13,516 14,242 Aug............................................... 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 Sept.............................................. 78,844 20,112 682 3,939 4,679 17,166 4,176 13,647 14,443 Oct................................................ 78,865 19,982 692 3,911 4,699 17,160 4,185 13,705 14,531 Nov............................................... 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 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.............................................. 76,428 18,118 710 3,472 4,495 16,820 4,161 13,759 14,893 JuneP............................................ 76,264 18,071 707 3,404 4,474 16,854 4,154 13,712 14,888 JulyP............................................ 76,352 18,032 710 3,360 4,470 16,919 4,161 13,779 14,921 NOT SEASONALLY ADJUSTED 1974—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 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.............................................. 76,641 18,038 711 3,465 4,495 16,791 4,161 13,869 15,111 77,086 18,212 J7u2n3eP........3.,.5..7..1.................4...,.5..3..2..... 16,930 4,200 13,904 15,014 Julyp............................................ 76,143 17,948 723 3,589 4,515 16,877 4,223 13,931 14,337 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

AUGUST 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 - - c F a o o u n i a e d l l l t e r G a i l c n e a i c d s t ­ y o n F i p a n i n u e s g h r d r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ r s tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933........................ 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945.......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960.......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8' 1965.......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 K71......................... 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—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............... 149.9 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 141.3 142.6 153.7 139.3 135.2 139.4 151.7 165.0 154.9 131.4 167.9 222.7 150.2 146.6 139.9 142.2 144.0 155.2 141.2 137.0 140.4 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 June.............. 160.6 174.4 166.4 136.9 181.4 230.6 169.4 158.1 141.4 149.8 153.2 168.1 150.3 144.1 147.3 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 d m s ­ c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c M a q e h n u r i a y n d i ­ p ­ ­ F t u e u t r r c e n . , i­ N t m m a o l i e l n n i ­ c ­ ­ T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l s u a ­ s ­ ment erals ment1 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—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.................... 170.2 187.5 183.5 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 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 July.................. 175.7 193.7 184.6 171.2 136.8 149.3 246.6 181.4 150.1 179.6 170.0 183.4 161.7 139.2 174.7 140.1 147.7 1 Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME □ AUGUST 1975 GROSS NATIONAL PRODUCT (In billions of dollars) 1974 1975 Item 1929 1933 1941 1950 1970 1971 1972 1973 1974 II III IV I II Gross national product..................................... 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,383.81,416.31,430.91,416.61,433.4 Final purchases................................................. 101.4 57.2 120.1 278.0 972.61,048.61,149.51,279.61,883.21,370.81,407.61,413.1 1,435.81,467.1 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 869.1 901.3 895.8 913.2 938.1 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 129.5 136.1 120.7 124.9 130.0 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 375.8 389.0 391.7 398.8 408.5 Services......................................................... 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 363.8 376.2 383.5 389.5 399.6 Gross private domestic investment................... 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 211.8 205.8 209.4 163.1 147.3 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 198.3 197.1 191.6 182.2 181.0 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 149.4 150.9 151.2 146.9 144.6 Structures.............................................. 5.0 .9 2.9 9.2 36.1 37.9 41.1 47.0 52.0 52.2 51.0 53.7 52.8 50.2 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 64.4 66.6 75.7 89.8 97.1 97.2 99.9 97.5 94.2 94.4 Residential structures............................... 4.0 .6 3.9 19.4 31.2 42.8 54.0 57.2 46.0 48.8 46.2 40.4 35.3 36.4 Nonfarm................................................ 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 48.0 45.4 39.7 34.8 35.7 1.7 -1.6 4.5 6.8 4.5 6.3 8.5 15.4 14.2 13.5 8.7 17.8 -19.2 -33.7 1.8 -1.4 4.0 6.0 4.3 4.9 7.8 11.4 11.9 10.4 6.6 17.5 -17.8 -33.4 Net exports of goods and services................... 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 -1.5 -3.1 1.9 8.8 9.2 Exports......................................................... 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 140.2 138.5 143.6 147.5 142.2 130.9 Imports......................................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.1 140.0 146.7 145.7 133.4 121.7 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 304.4 312.3 323.8 331.6 338.8 Federal.......................................................... 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 114.3 117.2 124.5 126.5 128.6 National defense...................................... 13.8 14.1 74.6 71.2 74.8 74.4 78.7 76.6 78.4 84.0 84.7 85.4 Other......................................................... 3.1 4.3 21.6 26.5 30.1 32'. 2 38.2 37 7 38.8 40^6 41.8 43.2 State and local...................................... 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 190.1 195.1 199! 3 205.1 210’. 2 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 827.1 823.1 804.0 780.0 779.4 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 II III IV I 1\p National income................................................ 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.6J.142.51,130.21,155.51,165.41,150.7 Compensation of employees............................. 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 848.3 868.2 877.7 875.6 885.5 Wages and salaries....................................... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 744.6 761.5 769.2 765.1 773.1 Private....................................................... 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545.1 592.4 588.3 602.5 605.1 597.4 602.0 Military..................................................... .3 .3 1.9 5.0 19.6 19.4 20.5 20.6 21.2 20.9 20.8 22.0 22.0 21.9 Government civilian................................. 4.6 4.9 8.3 17.4 95.5 104.7 114.8 126.0 137.1 135.4 138.2 142.1 145.7 149.2 Supplements to wages and salaries............... .7 .5 2.7 7.8 61.9 69.5 80.3 94.4 105.1 103.7 106.7 108.6 110.5 112.4 Employer contributions for social in­ surance .................................................. .1 .1 2.0 4.0 29.7 33.1 38.6 48.4 53.6 53.2 54.5 54.6 55.2 55.7 Other labor income.................................. .6 .4 .7 3.8 32.2 36.4 41.7 46.0 51.4 50.5 52.3 54.0 55.3 56.7 Proprietors’ income.......................................... 15.1 5.9 17.5 37.5 66.9 69.2 75.9 96.1 93.0 89.9 92.1 91.6 84.9 86.0 Business and professional........................... 9.0 3.3 11.1 24.0 50.0 52.0 54.9 57.6 61.2 60.7 62.3 62.5 62.7 63.3 Farm............................................................. 6.2 2.6 6.4 13.5 16.9 17.2 21.0 38.5 31.8 29.1 29.8 29.1 22.2 22.7 Rental income of persons................................. 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.1 26.5 26.3 26.6 26.8 27.0 27.1 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 105.6 105.8 103.4 94.3 Profits before tax.......................................... 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 140.7 139.0 157.0 131.5 101.2 Profits tax liability.................................... 1.4 .5 7.6 17.8 34.8 37.5 41.5 49.8 55.7 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' 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 32.’5 33.‘2 33.’3 33.’8 33.9 Undistributed profits........................... 2.8 -1.6 5.7 16.0 14.6 21.1 30.3 43.3 52.4 50.5 61.1 46.2 28.5 Inventory valuation adjustment.................. .5 -2.1 -2.5i -5.0 -4.8 -4.9 -7.0 -17.6 -35.1 -33.4 -51.2 -28.1 -7.0 -7.9 Net interest....................................................... 4.7 4.1 3.2 2.01 36.5; 41.6 45.6 52.3 61.6 60.1 62.8 65.9 68.9 71.9 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

AUGUST 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 II III IV I IIP Gross national product..................................... 103.1 55.6 124.5 284.8 977.11,054.91,158.01,394.91,397.41,383.81,416.31,430.91,416.61,433.4 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 118.6 120.7 122.9 125.2 127.4 Indirect business tax and nontax lia­ bility.................................................... 7.0 7.1 11.3 23.3 93.5 102.7 110.0 119.2 126.9 125.9 129.5 129.8 132.2 135.2 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.2 5.3 5.3 5.4 5.5 Statistical discrepancy........................... .7 .6 .4 1.5 -6.4 -2.3 -3.8 -5.0 .4 .3 3.0 4.8 1.6 Plus: Subsidies less current surplus of gov- -.1 .1 .2 1.7 1.1 2.3 .6 -2.9 -3.7 -2.4 -2.7 -1.6 -1.9 Equals: National income.................................. 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.51,130.21,155.51,165.41,150.7 Less: Corporate profits and inventory valu­ ation adjustment................................ 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 105.6 105.8 103.4 94.3 Contributions for social insurance........ .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 100.8 103.0 103.2 104.6 105.4 Excess of wage accruals over disburse­ ments ................................................. .0 .6 .0 -.1 -.5 -.6 -1.5 .0 .0 .0 Plus: Government transfer payments............ .9 1.5 2.6 14.3 75.1 89.0 98.6 113.0 134.6 130.6 138.7 145.8 158.7 171.2 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 41.9 42.7 43.6 43.7 45.0 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 32.5 33.2 33.3 33.8 33.9 Business transfer payments................... .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.2 5.3 5.3 5.4 5.5 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 808.3 864.0 944.91,055.01,150.51,134.61,168.21,186.91,193.41,220.8 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 168.2 175.1 178.1 178.0 142.0 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 966.5 993.11,008.81,015.51,078.8 Less: Personal outlays..................................... 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 894.9 927.6 922.3 939.5 964.1 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 869.1 901.3 895.8 913.2 938.1 Consumer interest payments............. 1.5 .5 .9 2.4 16.8 17.7 19.8 22.9 25.0 24.8 25.3 25.5 25.4 25.1 Personal transfer payments to for­ eigners.............................................. .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 1.0 .9 .9 .9 .9 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 71.5 65.5 86.5 75.9 114.6 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 603.5 602.9 594.8 591.0 620.5 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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June® Total personal income.............. 1,055.01,150.51,143.51,159.51,167.21,178.01,185.01,184.51,191.01,191.1 1,193.41,195.71,203.11,214.31,244.9 Wage and salary disbursements. 691.7 751.2 753.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 763.6 766.0 768.0 772.9 778.3 Commodity-producing in­ dustries .......................... 251.9 270.9 272.6 273.3 276.5 278.3 279.5 272.3 269.3 266.4 260.7 260.5 261.2 262.2 264.4 196.6 211.3 212.5 214.0 215.5 217.8 219.4 214.2 209.7 206.4 202.9 203.1 203.8 204.5 206.3 Distributive industries. . .. 165.1 178.9 179.1 180.8 180.7 183.1 183.8 183.9 183.8 183.2 184.0 183.8 184.3 186.1 187.2 Service industries................. 128.2 142.6 142.6 143.5 144.9 146.4 146.9 147.4 148.3 149.8 151.2 152.6 152.4 153.5 154.8 Government.......................... 146.6 158.8 158.9 162.1 159.5 159.9 162.8 164.2 165.2 166.2 167.6 169.2 170.3 171.1 171.9 Other labor income.................. 46.0 51.4 51.1 51.7 52.3 52.9 53.5 54.0 54.5 54.9 55.3 55.7 56.2 56.7 57.2 Proprietors’ income.................. 96.1 93.0 86.9 90.0 93.1 93.2 91.7 91.6 91.5 88.7 85.0 80.9 83.6 86.4 88.1 Business and professional... 57.6 61.2 61.2 61.9 62.5 62.5 62.5 62.5 62.5 62.7 62.8 62.5 63.0 63.4 63.6 Farm...................................... 38.5 31.8 25.7 28.1 30.6 30.7 29.2 29.1 29.0 26.0 22.2 18.4 20.6 23.0 24.5 Rental income........................... 26.1 26.5 26.7 26.6 26.6 26.6 26.7 26.8 26.9 27.0 27.0 27.0 27.1 27.1 27.2 Dividends.................................. 29.6 32.7 33.0 33.1 33.2 33.4 33.5 33.6 32.7 33.9 33.8 33.7 33.9 34.0 33.8 Personal interest income.......... 90.6 103.8 103.5 104.4 105.3 106.9 108.0 109.5 111.1 111.9 112.5 113.3 114.8 116.9 119.0 Transfer payments................... 117.8 139.8 137.0 142.5 143.6 146.0 147.6 149.8 156.1 158.6 165.5 168.3 168.9 169.9 191.3 Less: Personal contributions for social insurance........ 42.8 47.9 47.9 48.5 48.4 48.6 48.9 48.5 48.4 49.5 49.2 49.3 49.4 49.7 50.0 1,008.01,109.01,106.81,121.71,126.81,137.41,145.71,145.21,151.41,154.31,160.11,166.21,171.11,179.71,208.7 Agricultural income.................. 47.0 41.5 36.8 37.1 40.4 40.6 39.3 39.3 39.5 36.8 33.3 29.6 32.1 34.6 36.2 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 □ AUGUST 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 2.2 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 State and local governments.......................... 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 Total funds raised by financial sectors................ 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 •'i4:i 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 Total funds raised, by sector...................................... 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 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 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 * .i .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 Open-end investment companies...................... 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 Total funds raised....................................................... 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 Mortgages............................................................ 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 FRaAnnSuEalRly 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

AUGUST 1975 □ FLOW OF FUNDS A 57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1!974 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors............................................. 69.6 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 175.8 181.9 169.7 1 By public agencies and foreign 2 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 U.S. Government................................................... 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 Agency borrowing not included in line 1................. 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 U.S. Government securities................................... * 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 Insurance and pension funds................................. 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 Other finance.......................................................... 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 Private domestic deposits....................................... 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 Credit market borrowing....................................... 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 Foreign funds...................................................... .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 Other, net............................................................ 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 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 Commercial paper.................................................. 1.5 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 .6 4.3 -3.1 36 37 Other....................................................................... -.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 At savings institutions........................................ 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 Currency.............................................................. 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 .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 Mutual fund 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 .3 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.9 6.7 3.1 3 4 Acquisitions by financial institutions....................... 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 □ AUGUST 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 1973 1974 II III IV 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 -5 -2,897 2,278 4,388 12 Remittances, pensions, and other transfers. -1,606 -1,903 -1,721 -370 -457 -457 -439 -458 13 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 14 U.S. Government grants (excluding military)............... -2,173 -1,938 -5,461 -2,596 -1,408 -808 -649 -738 15 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............................................... -1,1 -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 34 Liquid private capital flows, net............................... 3,475 2,343 10,669 1,751 2,020 4,028 2,870 -6,294 35 Liquid claims...................................................... -1,247 -1,951 -6,113 -2,620 -1,297 -228 1,968 -4,752 36 Reported by U.S. banks............................ -742 -1,161 -5,980 -2,343 -1,306 -732 1,599 -5,059 37 Reported by U.S. nonbanking concerns.. -505 -790 -133 -277 9 504 -369 307 38 Liquid liabilities—.............................................. 4,722 4,294 16,782 4,371 3,317 4,256 4,838 -1,542 39 Foreign commercial banks........................ 3,717 3,028 12,636 4,300 2,413 3,150 2,773 -2,619 40 International and regional organizations. 103 377 1,295 -530 298 219 1,308 847 41 Other foreigners........................................ 902 889 2,851 601 606 887 757 230 42 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 43 Liquid liabilities to foreign official agencies............................. 9,734 4,456 8,481 -63 3,924 750 3,872 2,753 44 Other readily marketable liabilities to foreign official agen­ cies 6........................................................................................ 399 1,118 672 -277 183 135 631 800 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt............................................................... 189 -475 655 443 -1 215 -4 46 U.S. official reserve assets, net.................................................. 32 209 -1,434 -210 -358 -1,003 137 -326 47 Gold..................................................................................... 547 48 SDR’s................................................................................... -703 9 -172 -29 -123 -20 -5 49 Convertible currencies........................................................ 35 233 3 -85 -152 241 -14 50 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 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

AUGUST 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports - Trade balance 1972 1973 1974 r 1975 1972 1973 19743 »• 1975 1972 1973 19743r 1975 Month: Jan... 4.074 955 7,150 9,412 4,436 5,244 6,498 9,622 -361 -289 +652 -211 Feb.. . 3,824 070 7,549 8,789 4,473 5,483 7,318 7,872 -649 -413 +231 +917 Mar... 3,869 311 7,625 8,716 4,515 5,414 7,742 7,336 -647 -103 -117 + 1,380 Apr... 3,820 494 8,108 8,570 4,417 5,360 8,025 8,013 -596 + 133 + 83 +557 May.. 3,882 561 7,652 8,145 4,486 5,703 8,265 7,093 -604 -142 -612 + 1,052 June.. 3,971 728 8,317 8,692 4,468 5,775 8,577 6,954 -497 -47 -260 + 1,737 July... 4.074 865 8,307 4,565 5,829 8,922 -491 + 37 -615 Aug... 4,191 042 8,379 4,726 6,011 9,267 -535 + 32 -888 Sept... 4,176 420 8,399 4,612 5,644 8,696 -436 +776 -297 Oct.. . 4,312 6;585 8,673 4,738 5,996 8,773 -426 +589 -100 Nov... 4,468 6,879 8,973 5,148 6,684 8,973 -680 + 195 Dec... 4,553 6,949 8,862 5,002 6,291 9,257 -449 +658 -395 Quarter: I 11,767 15,336 22,325 26,917 13,424 16,140 21,558 24,830 -1,657 -804 +767 +2,087 I I 11,673 16,783 24,077 25,406 13,370 16,839 24,867 22,060 -1,697 -56 -790 + 3,346 III.... 12,442 18,327 25,085 13,903 17,483 26,885 -1,461 + 844 -1,800 IV.... 13,333 20,413 26,508 14,888 18,972 27,003 -1,555 + 1,441 -495 Year4.. 49,199 70,823 97,908 55,583 69,476 100,251 -6,384 + 1,347 -2,343 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 $100.3 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 l2 ld st T o c re k a i sury v c fo e C u 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 e u 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 ti r 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 July___ 14,912 11,652 11,567 12 1,021 2,227 1963... 16,843 15,596 15,513 212 1,035 Aug... 15,460 11,652 11,567 224 1,384 2,200 1964... 16,672 15,471 15,388 432 769 Sept.... 15,893 11,652 11,567 246 1,713 2,282 Oct... . 15,890 11,652 11,567 193 1,739 2,306 1965... 15,450 13,806 13,733 781 863 Nov.... 15,840 11,652 11,567 43 1,816 2,329 1966... 14,882 13,235 13,159 1,321 326 Dec__ 15,883 11,652 11,652 5 1,852 2,374 1967... 14,830 12,065 11,982 2,345 420 1968... 15,710 10,892 10,367 3,528 1,290 1975— 1969... 516,964 11,859 10,367 52,781 2,324 15,948 11,635 11,635 2 1,908 2,403 Feb........ 16,132 11,621 11,621 2 2,065 2,444 1970... 14,487 11,072 10,732 629 1,935 851 16,256 11,620 11,620 19 2,194 2,423 1971... 612,167 10,206 10,132 6 276 585 1,100 16,183 11,620 11.620 2 2,168 2,393 19727.. 13,151 10,487 10,410 241 465 1,958 May.... 16,280 11,620 11,620 4 2,218 2,438 19738. . 14,378 11,652 11,567 8 552 2,166 June.... 16,242 11,620 11,620 25 2,179 2,418 1974... 15,883 11,652 11,652 5 1,852 2,374 July___ 9 16,086 11,620 11,620 2 9 2,135 9 2,329 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR’s $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 8 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million) 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR’s $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 9 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR’s. of 16 member countries. The U.S. SDR holdings and reserve position 4 For holdings of F.R. Banks only, see p. A-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 July amounted to $2,381 million, reserve position in IMF, $2,167 at time of revaluation. million, and total U.S. reserve assets, $16,170. 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 □ AUGUST 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—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 6.478 11.652 231 169 312 882 1.781 927 97 76 103 49,830 6.478 11.652 31,700 231 169 312 882 1.781 927 97 76 103 6.478 11.652 231 169 312 882 1.781 927 97 76 103 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Dec................ 49,790 6.478 11.652 31,660 231 169 312 882 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 p49,770 6.478 11,620 p3 1,670 231 169 312 882 1.781 927 97 76 6.478 11,620 231 169 312 882 1.781 927 97 76 6.478 11,620 231 312 882 1.781 927 97 76 6.478 11,620 231 312 882 1.781 927 97 76 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi­ Nether­ period Fed. anon co lands Rep. of 1970.......................... 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971.......................... 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972.......................... 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973.......................... 4.261 4.966 148 293 159 173 3.483 891 120 388 103 196 2.294 1974—June.............. 4.262 4.966 150 293 159 173 3.483 891 130 389 103 154 2.294 July............... 4.262 4.966 150 293 158 173 3.483 891 130 389 105 154 2.294 Aug............... 4.262 4.966 150 293 158 173 3,483 891 130 389 107 154 2.294 Sept............... 4.262 4.966 150 293 158 173 3.483 891 130 389 103 154 2.294 Oct................. 4.262 4.966 150 293 158 173 3.483 891 138 389 103 154 2.294 Nov............... 4.262 4.966 150 293 158 173 3.483 891 138 389 103 154 2.294 Dec................ 4.262 4.966 150 293 158 173 3.483 891 148 389 103 154 2.294 1975—Jan................. 4.262 4.966 150 293 158 173 3.483 891 140 389 103 154 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 4.966 150 158 173 3.483 891 175 389 103 2.294 Junep............ 4.262 4.966 150 158 3.483 891 154 389 103 2.294 United Bank End of Paki­ Portu­ Saudi South Spain Sweden Switzer­ Thai­ Turkey King­ Uru­ Vene­ for Intl. period stan gal Arabia Africa land land dom guay zuela Settle­ ments2 1970.......................... 54 902 119 666 498 200 2,732 92 126 1,349 162 384 -282 1971.......................... 55 921 108 410 498 200 2,909 82 130 775 148 391 310 1972.......................... 60 1,021 117 681 541 217 3,158 89 136 800 133 425 218 1973.......................... 67 1,163 129 802 602 244 3,513 99 151 886 148 472 235 1974—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 99 151 148 472 260 May.............. 67 129 742 602 244 3.513 99 151 472 239 June**............ 67 129 744 244 3.513 99 151 472 262 i Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank’s gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ countries. tries, and China Mainland. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 61 5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabili­ liabili­ foreigners ties to ties to non­ End IMF Liquid mone­ of Total arising Short­ liabili­ Short­ tary period from term Market­ Non­ Other ties term Market­ inti, gold liabili­ able market­ readily to com­ liabili­ able and re­ trans­ ties re­ U.S. able U.S. market­ mercial ties re­ U.S. gional actions 1 Total ported Treas. Treas. able banks Total ported Treas. organi­ by bonds bonds liabili­ abroad6 by bonds zations 8 banks and and ties5 banks and in notes3 notes4 in notes3,7 U.S. U.S. 1963.............. 26,394 800 14,425 12,467 1,183 766 5,817 3,387 3,046 341 1,965 19649............ / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 . , 7 7 8 9 6 0 1 1 3 3 , , 2 2 2 2 4 0 1 1 . . 1 1 2 25 5 1 1 . . 2 2 8 83 3 1 1 5 5 8 8 7 7, , 2 3 7 0 1 3 3 3 , , 7 7 5 3 3 0 3 3 , , 3 3 5 77 4 3 3 7 7 6 6 1 1 . . 7 7 2 22 2 1965'............ 29,568 834 15,825 13,066 1,105 1.534 120 7,419 4,059 3,587 472 1,431 19669r.......... J 1 3 3 1 1 , , 1 0 4 1 4 9 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 89 4 5 0 1 1 2 2 , , 4 5 8 3 4 9 8 8 6 6 0 0 5 5 8 8 3 3 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 28 8 9 9 0 0 5 6 19679............ J 1 3 3 5 5 , , 8 6 1 6 9 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 1 20 9 1 4 1 1 4 4 . , 0 0 3 2 4 7 9 9 0 0 8 8 1 1 . . 4 4 5 5 2 2 1 1 . . 8 8 0 07 7 1 1 1 1 , , 2 0 0 8 9 5 4 4 , , 6 6 7 8 8 5 4 4 , . 1 1 2 2 0 7 5 5 5 5 8 8 6 6 9 7 1 7 19689............ 1 (3 3 8 8 , , 6 4 8 73 7 1 1 . . 0 0 3 3 0 0 1 1 7 7 , , 4 3 0 4 7 0 1 1 1 1 . . 3 3 1 1 8 8 4 5 6 29 2 3 3 . . 2 2 1 1 9 9 2 2 . . 3 34 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 5 9 3 4 4 . . 4 4 4 4 4 4 4 60 65 9 7 7 2 2 5 2 19699............ 9 \ / 4 4 5 5 ;9 7 1 5 4 5 1 1 , , 1 0 0 1 9 9 10 1 1 5 5 , , 9 9 9 7 8 5 1 1 1 1 , , 0 0 5 7 4 7 3 3 4 4 6 6 10 3 3 , , 0 0 7 7 0 0 1 1 . . 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , , 0 93 6 9 4 5 5 2 2 5 5 6 6 5 63 9 1970—Dec. . / 1 4 4 7 6 , , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3 , . 7 7 7 8 5 6 1 1 9 9 . . 3 3 3 3 3 3 2 3 9 0 5 6 3 3 . . 4 4 5 52 2 6 6 9 9 5 5 1 1 7 7 , , 1 16 3 9 7 4 4 , , 6 6 7 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 65 7 8 8 4 46 4 1971—Dec. n J 1 6 6 7 7 , , 6 8 8 0 1 8 5 5 4 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 3 9 9 , , 6 0 7 1 9 8 1 1 . . 9 9 5 5 5 5 9 9 , . 4 5 3 3 1 4 1 1 4 4 4 4 1 1 0 0 , , 2 94 6 9 2 4 4 , . 1 1 4 3 1 8 3 3 , , 6 6 9 9 1 4 4 4 4 4 7 7 1 1 , , 5 5 2 2 8 3 1972—Dec... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec... 92,443 66,814 43,923 5,701 15,529 1,661 17,694 5,932 5,502 430 2,003 1974—June.. 104,059 70,030 47,465 5.013 15.985 1,567 25,119 7.139 6,776 363 1,771 July... 107,116 71,117 48,455 5.013 15.985 1.664 26,816 7,312 6,935 377 1,871 Aug... 109,991 71,029 48,440 4.940 15.985 1.664 29,373 7,494 7.128 366 2,095 Sept... 110.761 72,716 50,149 4.880 15.985 1,702 28,045 8,010 7,617 393 1,990 Oct... 112,083 73,822 50,921 4.880 16.196 1,825 28,071 8,070 7,639 431 2,120 Nov.r. 115.761 75,184 51,858 4,906 16.196 2,224 29,770 8,336 7,855 481 2,471 Dec.r. 119,024 76,623 53.035 5,059 16.196 2,333 30,330 8,783 8,285 498 3,288 1975—Jan.... 118,191 75,918 51,824 5,177 16.324 2,593 29,429 8,692 8,184 508 4,152 Feb.. . 119,528 78,625 54,200 5,359 16.324 2,742 27,649 9,050 8,440 610 4,205 Mar... 120,163 79,176 53,696 6,003 16.324 3,153 27,841 9,002 8,394 608 4,144 Apr... 121,217 79,047 53,521 5.941 16,365 3,220 29,312 8,806 8,179 627 4,052 May®. 121,591 79,733 52,367 6,064 17,925 3,377 28.625 9,024 8,428 596 4,210 June®. 121,637 80,430 51,814 6,119 19,027 3,470 28.626 9,096 8,469 627 3,485 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. to the IMF under quota increases, and (b) U.S. Treasury obligations at 11 Data on the second line differ from those on first line because cer­ cost value and funds awaiting investment obtained from proceeds of sales tain accounts previously classified as official institutions are included of gold by the IMF to the United States to acquire income-earning assets. with banks; a number of reporting banks are included in the series for 2 Includes BIS and European Fund. the first time; and U.S. Treasury securities payable in foreign currencies 3 Derived by applying reported transactions to benchmark data; issued to official institutions of foreign countries have been increased in breakdown of transactions by type of holder estimated for 1963. value to reflect market exchange rates as of Dec. 31, 1971. 4 Excludes notes issued to foreign official nonreserve agencies. 5 Includes long-term liabilities reported by banks in the United States Note.—Based on Treasury Dept, data and on data reported to the and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ Treasury Dept, by banks and brokers in the United States. Data correspond porations. generally to statistics following in this section, except for the exclusion 6 Includes short-term liabilities payable in dollars to commercial banks of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign abroad and short-term liabilities payable in foreign currencies to commer­ official nonreserve agencies, the inclusion of investments by foreign cial banks abroad and to other foreigners. official reserve agencies in debt securities of U.S. Federally-sponsored 7 Includes marketable U.S. Treasury bonds and notes held by commer­ agencies and U.S. corporations, and minor rounding differences. Table cial banks abroad. excludes IMF holdings of dollars, and holdings of U.S. Treasury ietters 8 Principally the International Bank for Reconstruction and Develop­ of credit and nonnegotiable, non-interest-bearing special U.S. notes held ment and the Inter-American and Asian Development Banks. by other international and regional organizations. 9 Data on the 2 lines shown for this date differ because of changes 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. □ AUGUST 1975 6. U.S. 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 66,814 45,717 3,853 2,544 10,887 788 3,025 1974—June. 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.. . 73,822 43,006 3,805 4,046 17,329 2,947 2,689 Nov.. 75,184 43,178 3,705 3,768 18,673 3,204 2,656 Dec.. 76,623 44,150 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.. 79,047 45,025 3,251 4,506 20,062 3,493 2,710 May* 79,733 45,237 3,101 4,605 20,425 3,448 2,917 June* 80,430 45,173 3,008 4,723 20,457 3,800 3,269 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 Time 2 cates liab. 7 Demand Time2 certifi­ liab. 4 cates 3 197 1 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 892 197 2 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 799 197 3 69,074 68,477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 1,474 1974—June.. 81,014 80,222 12,856 8,253 34,038 25,074 792 1,653 106 66 91 1,390 July.. 83,951 83,285 12,222 8,643 34,178 28,241 666 1,745 121 66 51 1,508 Aug.. 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... 88,628 87,909 11,228 9,807 34,187 32,686 719 1,997 125 89 93 1,690 Nov.. 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* 93,259 92,594 11,924 10,368 40,628 29,674 665 3,839 114 133 1,994 1,598 June* 92,350 91,767 12,602 10,453 38,278 30,434 584 3,442 108 133 996 2,205 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time 2 certifi­ liab.4 Demand Time 2 certifi­ liab.7 cates 3 cates 3 1971........................ 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972....................... 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 1973........................ 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 127 1974—June............ 79,360 12,750 8,187 33,947 23,684 792 47,465 2,643 4,277 33,745 6,673 127 July............. 82,206 12,102 8,578 34,128 26,733 666 48,455 2,562 4,445 33,749 7,571 127 Aug............. 84,941 11,760 9,023 33,033 30,379 746 48,440 2,474 4,429 32,687 8,722 127 Sept............. 85,811 12,641 9,171 33,392 29,910 696 50,149 2,825 4,282 32,955 9,960 127 Oct.............. 86,631 11,104 9,718 34,094 30,996 719 50,921 2,168 4,400 33,634 10,591 127 Nov............. 89,483 12,732 9,461 34,927 31,620 744 51,858 2,472 4,058 34,467 10,734 127 Dec............. 91,650 13,915 9,984 35,165 31,821 766 53,035 2,951 4,257 34,656 11,044 127 1975—Jan.............. 89,439 12,172 10,053 36,874 29,619 721 51,824 2,185 4,296 36,531 8,813 Feb.............. 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 53,521 2,147 4,193 39,316 7,864 May*.......... 89,420 11,810 10,236 38,634 28,076 665 52,367 2,175 4,331 38,372 7,489 June*.......... 88,909 12,493 10,321 37,282 28,229 584 51,814 2,564 4,243 37,007 8,000 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 Time 2 certifi­ liab.4 Demand Time 2 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—June............ 31,895 24,454 7,689 996 95 15,675 6,776 2,418 2,915 107 1,336 665 July............. 33,752 26,277 7,105 1,165 204 17,803 6,936 2,435 2,967 175 1,359 539 Aug............. 36,502 28,754 6,890 1,444 200 20,220 7,129 2,396 3,150 145 1,437 618 Sept............. 35,661 27,476 7,096 1,625 258 18,497 7,617 2,721 3,264 179 1,454 568 Oct.............. 35,710 27,492 6,361 1,896 268 18,967 7,626 2,574 3,422 193 1,438 591 Nov............. 37,626 29,154 7,622 1,795 253 19,484 7,855 2,638 3,608 207 1,402 617 Dec............. 38,615 29,691 8,253 1,931 232 19,275 8,285 2,710 3,796 277 1,502 639 1975—Jan.............. 37,614 28,710 7,362 1,998 158 19,193 8,184 2,625 3,760 186 1,613 721 Feb.............. 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............. 37,492 28,571 6,897 2,102 107 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 June*.......... 37,095 28,042 7,075 1,948 77 18,943 8,469 2,855 4,129 198 1,286 584 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 and Asian Development Banks. 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. □ AUGUST 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May® June® Europe: Austria...................................................... 161 597 568 557 607 597 624 599 629 627 627 Belgium-Luxembourg.............................. 1.483 1,933 2,047 2,295 2,506 2,391 2,647 2,539 2,810 2,875 3,070 Denmark.................................................. 659 268 285 338 369 369 324 370 340 323 355 Finland...................................................... 165 219 223 262 266 204 204 202 212 181 365 France....................................................... 3.483 3,574 3,933 3,835 4,287 4,206 4,035 4,226 4,600 4,982 5,397 Germany................................................... 13,227 9,337 8,623 9.102 9,420 9,948 10,801 11,235 10,229 8,203 6.461 Greece....................................................... 389 293 255 213 248 253 242 192 202 273 254 Italy........................................................... 1,404 3,138 2,748 2,192 2,617 2,101 2,260 2,449 2,498 2,157 2,298 Netherlands.............................................. 2,886 2,498 3,009 3,177 3,234 3,208 3,242 3,414 3,302 3,351 3,532 Norway..................................................... 965 1,023 1,131 1,181 1,040 874 826 843 827 846 945 Portugal.................................................... 534 435 411 338 310 310 303 288 247 267 264 Spain......................................................... 305 377 347 332 382 379 320 358 361 341 362 Sweden...................................................... 1,885 1,096 1,071 1.103 1,138 1,132 1,215 1,209 1,477 1,697 1,847 Switzerland............................................... 3,377 8,393 8,974 9,378 10,007 9,601 9,453 8,862 8,807 8,587 8,471 Turkey....................................................... 98 100 121 102 152 169 131 243 103 87 124 United Kingdom..................................... 6,148 8,714 7,570 8,186 7,548 6,660 6,205 7,050 7,065 7,006 6,416 Yugoslavia................................................ 86 151 136 105 183 187 168 158 122 126 83 Other Western Europe1.......................... 3,352 3,122 3,263 3,432 4,051 3,128 2,859 2,641 2,516 2,467 2.462 U.S.S.R...................................................... 22 40 44 33 82 65 59 35 34 61 62 Other Eastern Europe............................. 110 149 136 140 206 172 120 218 123 148 370 Total. 40,742 45,456 44,896 46,300 48,655 45,953 46,037 47,130 46,503 44,605 43,768 Canada.................................................. 3,627 3,754 4,226 3,725 3,503 3,405 3,789 3,456 3,955 3,953 3,620 Latin America: Argentina.......................................... 924 1,105 1,017 938 886 900 894 822 886 964 989 Bahamas.......................................... 852 1,232 1,691 1,747 1,452 2,161 2,050 1,755 2,463 2,045 2,181 Brazil................................................ 860 893 894 952 1,034 859 927 1,065 1,077 984 1,081 Chile................................................. 158 266 270 297 276 284 281 258 278 260 289 Colombia.......................................... 247 293 292 305 305 319 317 326 313 307 400 Cuba................................................. 7 7 6 7 7 6 6 6 6 6 7 Mexico.............................................. 1,296 1,647 1,731 1,746 1,770 1,747 1,734 1,668 1,727 1,875 1,823 Panama............................................ 282 511 484 474 488 500 476 519 656 513 473 Peru................................................., 135 182 177 183 272 256 238 225 217 206 219 Uruguay.......................................... 120 120 128 140 147 152 164 171 174 168 154 Venezuela........................................ 1,468 3,217 2,992 2,921 3,413 2,918 3,351 3,501 3,559 3,864 3,724 Other Latin American republics..., 884 1,214 1,113 1,176 1,316 1,211 1,263 1,348 1,401 1,353 1,505 Netherlands Antilles and Surinam. 71 123 138 135 158 155 133 143 113 123 134 Other Latin America...................... 359 553 508 839 515 892 468 492 738 897 983 Total. 7,664 11,361 11,442 11,862 12,038 12,361 12,302 12,300 13,610 13,566 13,961 Asia: China, People’s Rep. of (China Mainland) 38 40 43 45 50 50 73 62 63 56 65 China, Republic of (Taiwan).............. 757 822 797 808 818 977 1,015 1,037 1,038 999 1,071 Hong Kong.......................................... 372 621 470 551 530 558 546 528 543 596 598 India..................................................... 85 158 140 156 261 179 177 183 127 168 145 Indonesia.............................................. 133 943 1,600 1,363 1,221 1,327 1,083 497 582 279 365 Israel..................................................... 327 217 218 279 386 417 473 508 490 536 470 Japan.................................................... 6,967 10,136 10,407 10,891 10,897 10,442 10,909 11,390 11,043 11,109 11,223 Korea................................................... 195 304 313 309 384 315 327 311 345 341 361 Philippines........................................... 515 748 726 731 747 702 642 745 660 662 697 Thailand.............................................. 247 362 328 333 333 337 327 455 446 342 370 Other................................................... 1,202 4,726 4,832 5,681 5,446 6,003 6,136 4,651 4,827 5,176 4,756 Total. 10,839 19,076 19,874 21,147 21,073 21,307 21,708 20,368 20,162 20,262 20,119 Africa: Egypt............. 35 73 109 109 103 105 106 92 112 113 514 Morocco....... 11 79 73 59 38 71 81 65 66 75 75 South Africa. 114 157 138 155 130 150 188 191 159 179 141 Zaire.............. 87 43 41 82 84 66 41 38 57 68 61 Other............. 808 2,893 2,973 3,199 ,197 ,272 ,392 3,461 3,472 3,460 3,400 Total. 1,056 3,244 3,333 3,604 3,551 3,664 3,809 3,848 3,867 3,895 4,192 Other countries: Australia 3,131 2,847 2,788 2,759 2,742 2,661 2,568 2,761 2,856 3,069 3,185 All other........ 59 72 71 86 89 88 76 66 60 71 64 Total................... 3,190 2,918 2,859 2,845 2,831 2,748 2,644 2,828 2,916 3,140 3,249 Total foreign countries. 67,119 85,811 86,631 89,483 91,650 89,439 90,289 89,931 91,012 89,420 88,909 International and regional: International2................... 1,627 1,534 1,665 2,049 2,894 3,636 3,677 3,222 3,291 3,600 3,205 Latin American regional.. 272 261 232 213 202 226 222 207 211 154 140 Other regional3................. 57 104 100 70 69 50 57 44 90 84 97 Total............ 1,955 1,900 1,997 2,333 3,165 3,911 3,955 3,473 3,592 3,839 3,442 Grand total. 69,074 87,710 88,628 91,816 94,815 93,350 94,245 93,404 94,604 93,259 92,350 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Other Latin Japan Other other tions ers many dom Europe America Asia coun­ tries 1971.............................. 902 446 457 144 257 56 164 52 30 111 3 87 9 1070 2 J1,000 562 439 93 259 87 165 63 32 136 1 32 10 (1,018 580 439 93 259 87 165 63 32 136 1 32 10 1973.............................. 1,462 761 700 310 291 100 159 66 245 132 5 78 16 1974—June.................. 1,635 974 661 321 268 73 150 56 220 144 2 77 12 July................... 1,673 978 695 337 284 75 155 56 231 142 2 97 13 Aug.................... 1,498 1,005 493 136 281 76 153 55 32 141 1 97 13 Sept................... 1,367 920 447 93 281 73 153 55 32 123 1 70 13 Oct..................... 1,293 849 445 111 263 71 153 43 32 116 1 87 13 Nov................... 1,354 905 449 112 262 75 152 43 32 116 1 88 17 Dec.................... 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 24 121 1 439 22 MayP................. 1,446 585 861 544 248 69 129 41 27 121 1 520 21 June.................. 1,405 518 887 572 245 70 126 41 25 121 1 550 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. □ AUGUST 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May® June® Europe: Belgium-Luxembourg..................... 7 9 9 10 10 10 10 11 12 14 14 14 14 Sweden............................................. 260 260 260 250 250 276 251 252 252 252 252 251 252 34 35 34 34 30 30 30 31 30 29 32 33 36 424 426 439 459 485 498 493 529 578 598 611 564 522 89 97 101 96 102 98 97 89 83 283 300 301 301 Eastern Europe............................... 5 5 5 5 5 5 5 5 3 5 5 5 5 Total......................................... 819 832 849 854 883 917 885 916 959 1,180 1,211 1,168 1,129 Canada................................................. 849 851 756 706 707 711 713 697 584 588 460 412 412 Latin America: Latin American republics............... 11 11 11 11 11 11 12 11 91 11 11 11 13 Other Latin America...................... 5 5 5 17 25 62 88 88 148 114 107 100 117 Total......................................... 16 16 16 28 36 74 100 99 239 125 119 112 131 Asia: Japan................................................ 3,498 3,497 3,498 3,497 3,497 3,498 3,498 3,498 3,496 3,496 3,496 3,496 3,496 Other Asia....................................... 12 12 12 12 12 12 212 325 541 1,071 1,121 1,291 1,397 Total......................................... 3,510 3,509 3,510 3,509 3,509 3,509 3,709 3,822 4,037 4,567 4,617 4,787 4,893 Africa................................................... 157 156 151 151 151 151 151 151 151 151 161 181 181 25 25 25 25 25 25 5,376 5,390 5,306 5,273 5,311 5,387 5,557 5,685 5,969 6,611 6,568 6,660 6,746 International and regional: International..................................... 57 51 102 23 71 71 61 180 190 592 383 306 -8 60 75 71 68 52 67 61 61 59 79 77 65 52 Total.......................................... 117 126 173 91 123 138 122 240 249 671 460 371 44 Grand total............................... 5,493 5,516 5,479 5,364 5,434 5,525 5,680 j 5,925 6,218 7,282 7,028 7,030 j 6,790 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 Others2 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 1972 3 /15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 \15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973.............................. 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 119 115 1974—June.................. 32,436 31,479 11,409 390 7,685 3,334 5,107 7,649 7,314 957 687 130 141 July................... 33,854 32,851 10,766 480 6,715 3,571 5,152 9,205 7,729 1,003 626 207 170 Aug................... 35,357 34,551 11,549 453 7,750 3,346 5,295 9,481 8,227 805 461 180 164 Sept................... 34,451 33,533 10,557 528 6,678 3,352 5,245 9,552 8,178 918 468 217 233 Oct..................... 34,593 33,563 10,002 371 6,299 3,332 5,356 10,050 8,155 1,030 547 243 240 Nov................... 36,784 35,756 10,968 439 7,102 3,426 5,345 10,717 8,726 1,028 515 283 229 Dec.................... 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................... 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 10,658 362 6,519 3,778 5,339 11,441 14,109 1,260 764 241 254 May®................ 45,028 43,960 11,852 366 7,638 3,848 5,546 10,961 15,601 1,068 478 301 290 June®................ 45,616 44,375 11,318 457 6,834 4,026 5,345 10,639 17,074 1,240 591 335 314 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

AUGUST 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1973 1974 1975 Area and country Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May* June? Europe: 11 17 21 42 21 18 38 22 16 19 17 Belgium-Luxembourg.............................. 147 164 301 308 384 401 591 550 674 647 600 Denmark................................................... 48 51 59 45 46 54 53 41 53 49 64 108 146 128 107 122 132 136 137 147 137 133 621 637 485 791 673 892 893 896 859 723 581 311 342 332 438 589 390 435 387 399 389 426 35 59 48 57 64 52 42 46 54 37 37 316 354 340 340 345 351 277 287 334 329 339 Netherlands............................................. 133 130 176 183 348 195 210 187 157 221 218 Norway..................................................... 72 113 94 97 119 115 106 104 114 126 98 Portugal.................................................... 23 26 35 25 20 16 39 32 26 25 25 222 253 227 201 196 184 166 150 234 251 235 153 159 149 160 180 128 99 72 101 131 115 Switzerland............................................... 176 377 277 339 335 252 267 230 227 277 252 Turkey....................................................... 10 15 15 14 15 23 17 19 37 30 40 United Kingdom..................................... 1,459 2,228 1,852 2,332 2,435 2,700 2,770 2,896 3,174 3,635 3,476 Yugoslavia................................................ 10 28 24 28 22 38 18 16 28 39 31 25 18 31 38 22 22 27 24 31 25 22 U.S.S.R..................................................... 46 21 27 28 46 44 48 34 51 83 77 44 102 105 86 131 124 100 110 113 117 118 3,970 5,239 4,724 5,660 6,110 6,130 6,331 6,239 6,831 7,293 6,905 1,955 2,032 2,556 2,517 2,773 2,904 2,643 2,934 2,911 3,096 2,868 Latin America: 499 695 679 704 720 783 808 869 958 1,007 1,061 893 2,787 3,088 2,978 3,398 3,737 4,699 5,804 5,715 6,997 8,647 900 1,534 1,476 1,493 1,415 1,264 1,345 1,266 1,299 1,272 1,184 Chile.......................................................... 151 250 256 291 290 303 351 395 433 422 429 397 665 686 675 713 706 679 695 710 702 687 Cuba.......................................................... 12 14 13 13 14 13 18 13 13 13 13 1,373 1,706 1,836 1,898 1,972 1,898 2,004 2,116 2,236 2,380 2,530 Panama..................................................... 274 410 405 402 503 604 458 546 531 671 527 Peru........................................................... 178 408 433 486 518 504 531 555 606 590 623 55 47 46 63 63 75 86 104 116 100 85 518 627 557 643 704 795 747 736 757 745 789 Other Latin American republics............. 493 711 724 810 852 873 890 902 954 960 951 Netherlands Antilles and Surinam......... 13 64 61 74 62 45 39 39 36 44 83 Other Latin America............................... 144 370 693 920 1,138 1,451 1,549 1,571 1,722 2,218 1,825 5,900 10,290 10,953 11,450 12,362 13,051 14,202 15,613 16,085 18,121 19,434 Asia: China, People’s Rep. of (China Mainland) 31 9 7 5 4 18 65 19 11 12 9 China, Republic of (Taiwan).................. 140 466 499 483 500 526 473 500 448 434 479 Hong Kong............................................... 147 243 214 238 223 203 184 291 210 288 315 India.......................................................... 16 17 19 16 14 19 22 17 21 17 20 88 122 128 140 157 142 159 145 134 119 115 Israel.......................................................... 155 197 200 208 256 271 284 322 299 287 312 Japan........................................................ 6,398 12,398 11,724 12,420 12,514 11,821 11,246 11,600 11,028 10,603 10,222 Korea........................................................ 403 733 760 835 955 1,116 1,286 1,356 1,503 1,415 1,523 Philippines................................................ 181 342 347 325 372 302 342 353 398 455 478 Thailand................................................... 273 439 417 428 458 391 374 406 413 374 441 Other......................................................... 392 669 670 666 771 739 781 846 1,007 965 907 8,224 15,635 14,986 15,765 16,224 15,545 15,216 15,855 15,472 14,969 14,821 Africa: Egypt......................................................... 35 97 93 91 111 106 114 122 142 138 149 5 10 11 12 18 19 15 19 10 12 10 South Africa............................................. 129 243 282 299 329 364 396 413 458 475 498 60 94 107 101 98 31 38 31 37 41 43 158 311 311 291 299 265 291 290 326 351 369 Total.................................................. 388 755 804 795 855 785 853 875 973 1,018 1,068 Other countries: Australia................................................... 243 422 478 492 466 433 431 436 428 440 428 43 76 91 104 99 125 95 99 107 89 81 286 498 569 597 565 558 526 535 535 528 509 20,723 34,448 34,593 36,783 38,889 38,972 39,771 42,051 42,805 45,026 45,605 International and regional........................... 1 2 1 1 1 1 1 1 2 11 20.723 34,451 34,593 36,784 38,889 38,973 39,772 42,052 42,806 45,028 45,616 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

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 1972 3 J4,954 4,539 833 430 3,276 375 40 145 704 406 1,996 319 881 503 \5,063 4,588 844 430 3,314 435 40 150 703 406 2,020 353 918 514 1973................. 5,996 5,446 1,160 591 3,694 478 72 148 1,124 490 2,116 251 1,331 536 1974—June.... 7,087 6,475 1,622 792 4,061 546 66 222 1,686 496 2,487 244 1,434 518 July.... 7,115 6,502 1,490 909 4,104 545 67 249 1,603 498 2,552 269 1,423 520 Aug....... 7,055 6,448 1,456 913 4,080 539 68 285 1,545 503 2,527 269 1,416 511 Sept.. . . 6,999 6,386 1,419 853 4,113 542 71 266 1,535 543 2,479 247 1,425 505 Oct 7,250 6,571 1,445 914 4,212 608 71 333 1,725 523 2,495 264 1,396 515 Nov.. . . 7,251 6,561 1,377 933 4,250 618 72 339 1,652 506 2,574 257 1,392 531 Dec....... 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 MayP... 7,870 7,194 1,287 1,186 4,721 610 66 402 1,923 476 2,848 254 1,289 677 June?... 7,773 7,136 1,263 1,213 4,660 559 77 389 1,885 446 2,849 264 1,261 678 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 dolla rs) Marketable U.S. Treas. bonds and notes1 U.S. corporate Foreign bonds Foreign stocks securities2 Net purchases or sales Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases or Total and sales sales sales regional Total Official Other 1972.................. 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 1973r............... 305 -165 470 465 6 18,574 13,810 4,764 1,474 2,467 -993 1,729 1,554 176 I974r............... -499 75 -573 -642 69 15,796 14,305 1,492 1,045 3,284 -2,240 1,903 1,719 183 1975—Jan.-June? 1,110 -78 1,189 1,157 32 9,898 7,840 2,058 993 3,948 -2,955 857 929 -72 1974—Juner... -101 -97 -3 -3 1,184 923 260 74 269 -194 207 117 90 July r. .. 23 9 14 14 1,061 1,055 5 94 251 -158 128 116 12 Aug.r__ -37 47 -84 -73 -11 1,410 1,133 277 59 214 -155 146 117 29 Sept.r. . , -116 -82 -33 -60 27 1,448 1,183 265 72 152 -80 146 100 47 Oct.r... 70 32 38 38 1,568 1,365 203 86 362 -276 91 152 -62 Nov.r. . , 92 17 76 25 50 1,400 1,513 -113 92 170 -78 124 102 22 Dec.r... 155 -16 171 153 17 1,089 1,245 -156 101 524 -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....... -254 -211 -43 -66 23 1 ,636 1,394 242 167 341 -174 155 141 14 May*5... 3 -89 92 123 -31 1,845 1,679 166 172 345 -173 145 157 -12 June___ 240 -326 87 156 -68 1,754 1,332 422 221 855 -635 129 143 -15 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

AUGUST 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 197 2 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 197 3 12,767 9,978 2,790 439 2 339 686 366 273 2,104 99 4 577 9 1974'........... 7,634 7,095 540 203 39 330 36 -377 50 281 -6 -33 288 17 1975—Jan.-June* 7,427 5,573 1,854 78 80 134 411 329 33 1,065 99 9 679 -1 1974—June., 555 513 42 -15 8 33 11 -18 -3 16 13 -7 19 2 July '. 521 510 11 13 5 39 -9 -64 3 -13 10 -2 13 2 Aug '. 590 502 88 19 18 16 15 -10 -11 46 14 9 18 * Septr. 460 445 15 -9 17 21 -6 -38 -3 -19 6 4 23 1 Octr.. 673 695 -22 17 -30 9 -39 -82 11 -115 3 2 95 1 Novr. 604 616 -13 5 1 -2 -35 -51 4 -77 -2 -5 70 1 Dec.., 450 429 21 13 13 20 -10 -76 9 -30 14 10 27 * 1975—Jan.. . 731 541 190 34 15 8 42 -8 15 107 12 -15 84 2 Feb.., 1,383 849 533 21 25 14 115 147 9 331 20 18 150 15 Mar.. 1,148 913 236 12 11 40 39 38 7 146 15 -5 80 -1 Apr... 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 June*, 1,321 1,063 258 32 1 19 71 38 -10 152 21 8 96 -19 i Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h tr e i r es I r n e t g l. i o a n n a d l 197 2 1,881 336 74 135 367 315 1,303 82 323 148 197 3 1,948 201 -19 307 275 473 1,204 49 588 52 1974'............... 952 96 183 96 329 -59 672 50 632 -455 1975—Jan.-June* 151 12 -18 66 -149 -87 50 726 -539 1974—June'.., 218 5 116 15 41 -17 161 1 -3 56 July.... -5 -1 72 2 36 -11 100 1 7 -128 Aug '.. . 190 1 1 -1 29 -9 21 2 199 -36 Sept'.. . 251 1 -1 2 54 -3 55 4 60 130 Oct'__ 226 10 -1 13 6 -5 23 18 100 79 Nov'.. . -100 4 2 -1 -20 -6 -23 11 399 -486 Dec '..., -176 1 -4 1 54 5 56 -4 93 -339 1975—Ja..........n 119 2 6 59 5 74 14 152 -120 Feb.'... -269 -4 3 -83 1 -80 16 37 -242 Mar.... 365 1 -1 10 23 1 32 4 322 10 Apr....... -17 1 -26 35 -99 -13 -100 5 81 -7 May*... -212 3 -1 7 -81 -3 -72 7 69 -218 June*... 164 9 8 5 32 3 58 4 64 38 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance di­ of U.S. Govt, agencies and corporations. Also includes issues of new rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun- End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1972.. —622 —90 — 532 505 —635 —69 —296 -66 29 1972—June........................... 312 339 1973.. — 818 139 —957 -141 —569 —120 — 168 3 37 Sept............................ 286 336 1974' -2,056 -60 -1,997 -546 -1,529 -93 142 7 22 Dec............................ 372 405 1975— 1973—Mar............................ 310 364 Jan.—June* -3,777 -1,612 -2,165 -122 -1,391 -110 -442 21 316 243 Sept............................ 290 255 1974—June... -105 3 -107 -75 -121 -6 94 1 * Dec............................ 333 231 July'... -145 1 -147 -63 -108 -1 24 -1 3 Aug '... -125 2 -127 -35 -126 -9 42 -1 1 1974—Mar............................ 383 225 Sept'... -34 12 -46 -41 -37 5 23 1 3 June........................... 354 241 Oct'.... -338 2 -340 -81 -244 * -16 -1 2 Sept............................ 298 178 Nov.... -56 3 -59 -21 -8 -14 -21 2 3 Dec.*......................... 293 193 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 Mar.... -473 -117 -356 -66 -175 -3 -112 -2 1 Note.—Data represent the money credit balances and Apr.. .. -160 -57 -103 -57 -6 17 -59 * 2 money debit balances appearing on the books of reporting May*.. -185 31 -216 39 -168 * -88 -2 2 brokers and dealers in the United States, in accounts of June*.. -1,399 -750 -649 -17 -478 * -29 2 — 127 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. □ AUGUST 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies......................... 1972—Dec.. 78,202 4,678 2,113 2.565 71.304 11,504 35,773 1,594 22,432 2,220 1973—Dec.. 121,866 5,091 1,836 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—May. 145,918 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.' 151,905 6,898 4,464 2,434 138,713 27,559 60,283 4,077 46,795 6,294 1975—Jan.'. . . 151,140 7,029 4,360 ,669 138,143 27,894 58,863 4,152 47,234 5,968 Feb.'. .. 151,662 5,486 2,882 ,604 140,345 28,969 58,794 4,246 48,335 5,832 Mar.'... 155,204 5,326 2,638 ,688 143,750 28,330 61,611 4,407 49,402 6,127 Apr....... 155,616 5,831 3,052 ,779 143,949 29,195 60,292 4,353 50,109 5,836 May?... 156,888 7,725 4,888 ,837 143,081 27,568 60,325 4,496 50,692 6,082 Payable in U.S. dollars. 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—Dec.. 79,445 4,599 1,848 2,751 73,018 12,799 39,527 1,777 18,915 1,828 1974—May.......... 100,266 7,685 5,417 2,268 90,066 16,890 47,373 2,841 22,962 2,514 June.......... 101,704 6,51“ 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 2,889 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.'........ 105,969 6,602 4,428 2,174 96,210 19,688 45,067 3,289 28,166 3,157 1975—Jan.'. . 105,776 6,706 4,318 2,387 95,989 20,448 43,151 3,370 29,020 3,082 Feb.'. 104,360 5,141 2,839 2,302 96,327 20,827 42,672 3,431 29,397 2,891 Mar.'. 107,519 5,012 2,607 2,405 99,637 19,836 46,118 3,604 30,079 2,870 Apr... 108,399 5,466 3,009 2,456 100,231 20,993 45,172 3,599 30.467 2,702 May?. 111,622 7,315 4,824 2,491 101,369 21,270 45,398 3,687 31,015 2,938 IN UNITED KINGDOM Total, all currencies........ 1972—Dec. . 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1,018 1973—De.............c 61,713,7289 738 1,051 57,761 8,773 34.442 735 13,811 2.183 1974—May. 71,982 3,792 2,969 823 66,008 11,759 37,920 889 15,439 2.183 June. 71,305 3,561 2,612 949 65,617 11,886 36,468 812 16,452 2,126 July.. 69,197 3,046 2,205 840 63,974 12,486 34,575 718 16,195 2,177 Aug.. 70,382 3,599 2,858 741 64,496 12,790 33,942 666 17,097 2,287 Sept.. 70,965 2,860 2,037 774 65,596 12,436 34,959 829 17,372 2,509 Oct.. 68,123 1,325 502 823 64,462 12,386 33,608 887 17,581 2,336 Nov.. 69,137 3,387 2,568 818 63,571 13,122 32,128 753 17,567 2,179 Dec.. 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 2,445 1975—Jan.. . 68,451 2,633 1,902 731 63,527 12,873 32,057 854 17,743 2,291 Feb.. . 67,038 1,818 1,023 796 63,250 13,246 31,641 848 17,515 1,970 Mar... 69.654 1,798 982 817 65.693 12,806 34,260 929 17,699 2,163 Apr... 69,248 2,017 1,126 891 65,330 13,314 33,079 919 18,018 1,902 May?. 68,707 2,535 1,639 845 64,269 12,491 32.443 920 18,415 1,904 Payable in U.S. dollars. 1972—Dec.. 30,257 2.146 27,664 4,326 17,874 5,464 446 1973—Dec.. 40,323 1,642 37,816 6,509 23,899 7,409 865 1974—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 2,953 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—Jan............ 47,769 2,542 43,959 10,421 23,271 10,268 1,267 Feb........... 46,019 1,697 43,244 10,615 22,575 10,055 1,077 Mar........... 48,939 1 ,687 46,039 10,373 25,610 10,057 1,212 Apr........... 48,797 1,885 45,923 10,995 24,711 10,217 989 May p........ 48,506 2,404 45,180 10,656 24,018 10,506 922 IN BAHAMAS AND CAYMANS i Total, all currencies........................... 1972--Dec.. 12,642 1,486 214 1,272 10,986 6,663 4,322 170 1973--Dec.. 23,771 2,210 317 1,893 21,041 12,974 8,068 520 1974—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.' 31,733 2,463 1,081 1,382 28,455 16,854 11,601 815 1975—Jan.'. , 33,131 3,223 1,594 1,629 29,070 16,864 12,206 838 Feb.'. 33,534 2,563 1,072 1,491 30,137 17,389 12,748 834 Mar.'. 33,793 2,405 839 1,567 30,671 17,595 13,077 716 Apr... 35,666 2,587 1,006 1,581 32,359 18,967 13,392 720 May?. 38,198 4,125 2,468 1,657 33,215 19,982 13,233 858 Digitized for FRASFEoRr notes see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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. ..........Xotal all currencies 121,866 5,610 1,642 3,968 111,615 18,213 65,389 10,330 17 683 4,641 .........1973—Dec. 145,918 8,275 3,218 5,057 131,978 23,941 74,193 12,187 21 657 5,665 .........1974—May 147,467 9,028 3,488 5,540 132,328 24,234 71,692 14,388 22 015 6,110 145,057 10,129 4,373 5,757 128,616 25,313 66,855 15,030 21 418 6,312 .....................July 148,719 9,419 4,123 5,296 132,774 26,007 68,772 16,304 21 690 6,527 .....................Aug. 147,720 9,981 5,058 4,923 131,016 26,337 66,071 17,488 21 121 6,723 145,906 10,449 5,853 4,596 128,910 26,619 62,606 18,171 21 514 6,548 150,275 11,901 6,249 5,652 131,619 27,717 63,596 19,979 20 327 6,755 151,905 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20 189 6,933 151,140 11,831 6,356 5,476 132,775 27,019 64,147 21,683 19 926 6,533 .........1975—Jan.' 151,662 12,561 6,607 5,954 132,594 28,185 63,402 21,951 19 057 6,507 .....................Feb. »■ 155,204 15,407 8,849 6,557 133,540 28,214 63,419 22,577 19 330 6,257 155,617 14,044 7,812 6,233 135,485 30,083 62,287 23,236 19 879 6,088 156,888 15,893 9,398 6,494 134,550 27,486 64,682 22,223 20 158 6,445 54,878 3,050 847 2,202 50,406 7,955 29,229 6,781 6 441 1,422 .........1972 Dec. 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9 502 2,158 .........1973—Dec. 100,714 7,685 3,021 4,664 89,848 16,694 50,848 9,817 12490 3,181 .........1974—May 102,302 8,414 3,279 5,135 90,359 17,070 48,909 11,630 12 750 3,529 102,432 9,494 4,160 5,334 89,264 18,438 45,768 12,337 12 721 3,675 106,909 8,786 3,932 4,853 94,178 19,456 48,394 13,508 12 821 3,945 106,004 9,294 4,833 4,461 92,630 19,599 46,020 14,533 12 478 4,080 103,934 9,905 5,650 4,255 90,136 19,481 42,690 15,076 12 889 3,893 107,427 11,215 6,023 5,192 92,233 20,242 43,147 16,789 12 054 3,979 107,890 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12072 3,951 108,190 11,368 6,204 5,164 93,044 19,999 42,854 18,343 11 848 3,778 .........1975—Jan.' 106,125 12,063 6,460 5,603 90,426 20,109 40,701 18,708 10907 3,636 .....................Feb.r 109,501 14,795 8,660 6,135 91,338 19,880 41,216 19,303 10939 3,368 110,405 13,389 7,628 5,760 93,603 21,574 40,996 19,909 11 123 3,414 114,086 15,292 9,225 6,067 95,195 21,283 43,845 18,928 11 139 3,599 IN UNITED KINGDOM 43 467 1 453 113 1 340 41,020 2 961 24,596 6,433 7 030 994 .........1972—Dec ..........Total all currencies 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 10 248 1,990 .........1973—Dec. 71,982 3,729 749 2,979 66,156 4,890 39,596 9,273 12 398 2,097 .........1974—May 71,305 3,744 606 3,138 65,429 4,913 36,711 11,289 12 516 2,132 69,197 3,439 611 2,828 63,557 5,099 34,393 11,543 12 521 2,201 70,382 3,701 713 2,988 64,309 4,794 33,920 12,737 12 858 2,373 70,965 3,503 635 2,867 64,919 5,428 33,766 13,544 12 181 2,543 68,123 3,227 683 2,544 62,621 5,237 30,621 14,051 12 712 2,275 69,137 4,376 889 3,487 62,397 5,071 30,352 15,454 11 521 2,363 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 11 349 2,418 68,451 3,804 873 2,931 62,360 4,567 30,266 16,419 11 108 2,287 .........1975—Jan. 67,038 4,376 913 3,462 60,546 4,693 29,207 16,517 10 127 2,117 69,654 5,095 1,224 3,871 62,363 4,630 29,990 17,305 10 438 2,196 69,248 4,596 1,342 3,254 62,625 5,394 28,666 17,812 10 753 2,026 68,708 4,772 1,337 3,435 61,772 5,325 28,957 16,726 10 764 2,164 30,810 1,272 72 1,200 29,002 2,008 17,379 5,329 4 287 535 .........1972—Dec. 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6 152 870 .........1973—Dec. 49,301 3,481 724 2,757 44,625 3,083 26,010 7,468 8064 1,195 .........1974—May 48,970 3,516 579 2,937 44,214 3,255 23,669 9,137 8 155 1,239 48,018 3,176 568 2,608 43,528 3,364 22,388 9,450 8 326 1,314 49,481 3,448 692 2,756 44,654 3,278 22,558 10,437 8 382 1,380 50,212 3,177 605 2,572 45,550 3,667 22,818 11,035 8030 1,486 48,314 2,988 651 2,337 44,033 3,690 20,203 11,444 8 696 1,294 49,668 4,037 865 3,172 44,256 3,557 20,200 12,808 7 691 1,375 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7 587 1,328 48,490 3,599 854 2,744 43,578 3,172 19,061 13,736 7 609 1,313 .........1975—Jan. 46,698 4,164 895 3,269 41,350 3,266 17,673 13,932 6 479 1 ,184 .....................Feb. 49,533 4,805 1,189 3,616 43,546 3,072 19,128 14,688 6 658 1,183 49,177 4,297 1,313 2,984 43,758 3,886 17,997 15,158 6 717 1,122 49,479 4,487 1,314 3,173 43,784 4,220 18,640 14,135 6 789 1,208 IN BAHAMAS AND CAYMANS i 12,643 1,220 11,260 1,818 8.105 1 338 163 .........1972—Dec. ..........Total, all currencies 23,771 1,573 21,747 5,508 14,563 1676 451 .........1973—Dec. 30,864 2,567 27,706 8,255 17,217 2 233 591 31,219 2,855 27,725 7,642 17,593 2 490 639 30,403 3,684 26,039 7,663 16,223 2 153 681 .....................July 32,317 2,909 28,670 8,079 18,403 2 188 738 30,080 3,721 25,626 7,072 16,259 2 295 733 30,071 4,311 24,995 7,211 15,650 2 135 765 32,313 4,426 27,107 8,538 16,427 2 141 779 31,733 4,815 26,140 7,702 16,427 2 011 778 33,131 5,036 27,343 8,269 16,854 2 220 752 .........1975—Jan.r 33,534 5,243 27,498 8,975 16,262 2 262 793 33,793 7,228 25,875 8,498 15,134 2 243 690 35,667 6,529 28,428 9,647 16,462 2 318 711 38,198 8,126 29,070 7,634 18,995 2 441 1,001 Digitized foFr oFr RnoAtSesE sRee p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 . c S u . r T it r ie e s a s * . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 197 2 325 50,934 215,530 197 3 251 52,070 217,068 1,491 1,062 161 183 86 663 534 197 4 418 55.600 16.838 1,141 697 150 173 121 372 443 1071 2 11,648 1,092 203 234 120 577 587 1974—July.. 330 54,317 16,964 \1,507 1,078 127 234 68 580 443 Aug.. 372 53,681 16,917 S O e c p t t . . . . . 4 3 1 7 1 6 5 5 4 3 , , 6 8 9 4 1 9 1 1 6 6 , , 8 8 7 9 5 2 1 070 7. 1 1 2 1 , , 3 9 7 6 4 5 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 3 0 4 7 0 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 Nov.. 626 55,908 16,865 1973 '.................. 3,162 2,588 37 427 109 1,118 770 Dec.. 418 55.600 16.838 1974—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.r___ 2,698 2,132 25 325 216 1,122 835 June.. 373 61,406 16.803 Nov.T.... 2,998 2,380 15 326 277 1,285 941 July.. 369 60,999 16.803 Dec.r.... 3,303 2,582 56 403 261 1,342 951 1975—Jan.'. 3,215 2,511 45 314 345 1,136 1,112 1 Marketable U.S. Treasury bills, certificates of in­ Feb.'.... 3,326 2,512 46 356 412 1,079 1,136 debtedness, notes, and bonds and nonmarketable U.S. Mar........ 3,234 2,434 66 347 387 1,055 1,132 Treasury securities payable in dollars and in foreign Apr.*___ 3,359 2,449 39 313 559 1,065 1,277 currencies. May*.... 3,182 2,216 47 391 527 905 1,238 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 contrac tual 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 fb reign currenciies 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—Sept...................... 2,564 2,109 454 4,894 4,186 383 326 / 2,704 2,229 475 5,185 4,535 318 333 Dec.1................... \ 2,763 2,301 463 5,000 4,467 289 244 1972—Mar...................... 2,844 2,407 437 5,173 4,557 317 300 June..................... 2,925 2,452 472 5,326 4,685 374 268 Sept...................... 2,933 2,435 498 5,487 4,833 426 228 J 3,119 2,635 484 5,721 5,074 410 237 Dec.1................... \ 3,399 2,921 478 6,312 5,645 393 274 1973—Mar...................... 3,307 2,828 478 7,028 6,150 456 422 June..................... 3,286 2,754 532 7,304 6,453 493 358 Sept...................... 3,574 2,915 659 7,648 6,710 528 411 Dec....................... 3,962 3,249 713 8,438 7,522 485 431 1974 Mar...................... 4,382 3,563 819 10,407 9,465 400 542 June..................... 5,133 4,168 965 10,965 10,030 420 516 Sept...................... 5,600 4,646 954 10,632 9,656 419 558 Dec....................... 5,766 4,851 915 11,170 10,125 455 590 1975—Mar.*.................. 5,723 4,860 863 10,792 9,679 398 715 1 Data on the 2 lines shown for this date differ preceding date; figures on the second line are compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 o 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 1974 1975 1974 1975 Mar. June Sept. Dec. Mar.* Mar. June Sept. Dec. Mar.* Europe: Austria.................................................... 5 12 18 20 26 16 17 15 26 15 Belgium-Luxembourg........................... 226 417 500 515 467 152 139 114 128 103 Denmark................................................ 17 18 22 24 23 37 27 25 42 35 Finland................................................... 8 9 12 16 16 42 80 91 120 76 France.................................................... 134 177 164 202 151 384 511 463 431 329 Germany, Fed. Rep. of......................... 237 220 246 314 350 337 348 328 339 276 Greece.................................................... 21 28 28 39 25 87 76 69 65 59 Italy........................................................ 121 131 137 128 113 322 395 415 397 315 Netherlands............................................ 114 104 120 117 121 103 126 144 148 157 Norway.................................................. 9 8 10 9 9 22 35 32 36 34 Portugal.................................................. 24 17 20 19 13 112 101 69 81 42 Spain...................................................... 60 45 48 56 54 406 409 414 369 359 Sweden................................................... 43 52 40 38 32 74 106 97 89 66 Switzerland............................................ 92 112 106 140 157 91 78 154 136 86 Turkey.................................................... 9 11 20 8 12 23 28 24 26 33 United Kingdom................................... 1,118 1,244 1,415 1,216 1,101 1,839 1,871 1,768 1,853 1,635 Yugoslavia............................................. 16 18 17 40 52 15 23 23 22 33 Other Western Europe.......................... 3 6 7 5 5 19 23 20 21 23 Eastern Europe...................................... 29 34 80 70 54 79 97 90 142 114 Total............................................... 2,284 2,662 3,010 2,976 2,781 4,159 4,491 4,355 4,471 3,790 Canada....................................................... 338 312 298 298 260 1,534 1,577 1,570 1,615 1,868 Latin America: Argentina............................................... 19 19 28 36 31 52 53 59 69 75 Bahamas................................................ 211 307 325 281 299 746 977 518 594 616 Brazil...................................................... 78 125 160 118 121 411 523 419 461 376 Chile....................................................... 7 10 14 22 23 78 64 124 106 69 Colombia............................................... 18 22 13 14 11 44 51 49 51 51 Cuba....................................................... * * * * * 1 1 1 1 1 Mexico.................................................... 77 76 64 63 72 260 263 287 297 325 Panama.................................................. 14 19 21 28 18 94 84 114 132 110 Peru........................................................ 17 11 15 14 18 65 60 40 44 46 Uruguay................................................. 3 2 2 2 3 6 5 6 5 15 Venezuela............................................... 50 43 53 49 39 136 172 190 190 178 Other L.A. republics............................. 45 60 63 83 65 172 172 182 193 194 Neth. Antilles and Surinam................. 5 7 8 24 48 13 17 14 20 16 Other Latin America............................. 37 59 50 81 114 167 157 169 147 192 Total................................................ 581 761 818 816 862 2,245 2,599 2,169 2,308 2,266 Asia: China, People’s Republic of (China Mainland).......................................... 20 39 23 17 8 8 3 8 17 19 China, Rep. of (Taiwan)....................... 51 72 72 93 102 175 118 127 137 121 Hong Kong............................................ 24 19 19 19 19 69 68 64 63 82 India....................................................... 14 13 10 7 10 36 31 37 37 32 Indonesia................................................ 13 22 38 60 63 51 67 81 85 110 Israel................................ 31 39 40 50 63 38 37 53 44 46 Japan ...................................................... 374 374 352 348 331 1,214 957 1,100 1,148 1,238 Korea...................................................... 38 45 66 75 43 109 124 123 201 165 Philippines.............................................. 9 19 28 25 19 87 86 108 93 86 Thailand................................................. 7 7 10 10 9 21 22 23 24 30 Other Asia.............................................. 262 404 431 536 645 264 314 311 387 399 Total................................................ 844 1,054 1,089 1,239 1,311 2,074 1,827 2,034 2,237 2,328 Africa: 35 12 6 3 5 9 13 16 15 24 South Africa.......................................... 22 24 35 43 54 69 85 90 101 109 Zaire........................................................ 21 15 17 18 17 20 17 13 24 18 Other Africa.......................................... 134 156 114 129 142 154 199 205 234 242 Total................................................ 212 206 172 193 217 253 314 325 374 393 Other countries: Australia................................................ 73 51 57 56 60 110 117 134 116 100 All other................................................. 22 24 32 30 31 31 39 44 49 44 Total............................................... 95 74 89 86 91 142 157 178 165 144 International and regional........................ 29 63 125 159 201 1 1 1 ♦ 1 Grand total..................................... 4,382 5,133 5,600 5,766 5,723 10,407 10,965 10,632 11,170 10,792 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. □ AUGUST 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th ll er America 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 / 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—June....................... 3,300 3,206 108 712 748 188 61 671 161 377 86 93 Sept........................ 3,448 3,187 128 695 757 177 63 662 132 390 89 96 Dec.11 r.................... / \ 3 3 , , 5 59 4 2 0 3 3 , , 3 2 1 8 2 4 1 1 9 6 1 3 7 7 4 1 5 5 7 7 5 7 9 5 1 1 8 8 7 4 6 60 4 7 6 0 5 3 8 1 1 3 5 3 6 4 3 0 7 6 8 8 8 7 6 10 3 9 8 1973—Mar.r..................... 3,770 3,421 156 802 775 165 63 796 123 393 105 45 June r..................... 3,771 3,472 180 805 782 146 65 825 124 390 108 48 Sept.r..................... 3,979 3,632 216 822 800 147 73 832 134 449 108 51 Dec.r..................... 3,867 3,695 290 763 854 145 79 824 122 450 115 53 1974—Mar.r..................... 3,816 3,813 368 737 888 194 81 800 118 448 119 61 Juner..................... 3,514 3,809 363 696 907 184 138 742 117 477 122 61 Sept........................ 3,340 3,932 370 702 943 181 145 776 114 523 118 59 Dec......................... 3,677 4,112 364 640 975 187 143 1,018 107 505 121 54 1975—Mar.P..................... 3,924 4,113 339 653 1,019 182 160 966 102 528 130 54 1 Data on the 2 lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. 25. OPEN MARKET RATES (Per cent per annum) Germany, Switzer­ Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks’ day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money 3 60-90 money 5 3 months money rate 3 months rates days 4 1973....................... 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974....................... 7.63 7.69 12.99 11.36 9.85 9.48 .12.87 6.06 8.76 6.90 8.21 6.67 1974---JUly............. 8.88 8.52 13.21 11.20 8.70 9.50 13.75 5.63 9.13 7.50 8.57 7.00 Aug............. 8.76 8.83 12.80 11.24 11.11 9.50 13.68 5.b3 9.05 7.50 7.09 7.00 Sept............. 8.70 8.84 12.11 10.91 10.69 9.50 13.41 5.63 9.00 7.42 5.08 7.00 Oct.............. 8.67 8.56 11.95 10.93 10.81 9.50 13.06 5.63 8.88 7.38 7.81 7.00 Nov............. 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 3.38 4.91 2.78 1.37 6.50 July. .. 7.22 7.17 9.86 9.71 7.34 6.25 7.25 3.98 2.98 1.99 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 $35,024 million and $35,301 million, respectively, on May 31, 1975. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 July 31, 1975 Rate as of July 31, 1975 Country Country Per Month Per Month cent effective cent effective Argentina...................... 18.0 Feb. 1972 Italy................... 7.0 May 1975 Austria.......................... 6.0 Apr. 1975 Japan................. 8.0 June 1975 Belgium......................... 6.5 May 1975 Mexico. ............. 4.5 June 1942 Brazil............................. 18.0 Feb. 1972 Netherlands.... 6.0 Mar. 1975 Canada.......................... 8.25 Jan. 1975 Norway............. 5.5 Mar. 1974 Denmark....................... 8.0 Apr. 1975 Sweden.............. 7.0 Aug. 1974 France........................... 9.5 June 1975 Switzerland........ 4.5 May 1975 Germany, Fed. Rep. of 4.5 May 1975 United Kingdom 11 .0 July 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/2 Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5l/i per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; 27. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1971..................... 113.61 4.0009 2.0598 99.021 13.508 18.148 28.768 13.338 244.42 .16174 .28779 1972..................... 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973..................... 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974.................... 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1974—July.......... 147.99 5.4973 2.6378 102.424 16.858 20.984 39.174 12.759 238.96 .15522 .34372 Aug.......... 148.24 5.3909 2.5815 102.053 16.547 20.912 38.197 12.525 234.56 .15269 .33082 Sept.......... 144.87 5.2975 2.5364 101.384 16.111 20.831 37.580 12.316 231.65 .15103 .33439 Oct........... 130.92 5.4068 2.5939 101.727 16.592 21.131 38.571 12.416 233.29 .14992 .33404 Nov.......... 131.10 5.5511 2.6529 101.280 16.997 21.384 39.836 12.397 232.52 .14996 .33325 Dec.......... 131.72 5.7176 2.7158 101.192 17.315 22.109 40.816 12.352 232.94 .15179 .33288 1975—Jan........... 132.95 5.9477 2.8190 100.526 17.816 22.893 42.292 12.300 236.23 .15504 .33370 Feb........... 134.80 6.0400 2.8753 99.957 18.064 23.390 42.981 12.550 239.58 .15678 .34294 Mar.......... 135.85 6.0648 2.9083 99.954 18.397 23.804 43.120 12.900 241.80 .15842 .34731 Apr........... 134.16 5.9355 2.8433 98.913 18.119 23.806 42.092 12.686 237.07 .15767 .34224 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 July.......... 130.95 5.7223 2.7123 97.004 17.477 23.659 40.469 11.777 218.45 .15387 .33741 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—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 July 41.442 8.0000 39.154 127.73 19.241 3.9227 139.75 1.7446 24.213 38.272 218.45 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 BANKING OFFICES □ AUGUST 1975 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Mutual savings banks All Member Nonmember Type of office and type of change banks Total Total Na­ State Total Insured Non­ Insured 2 Nontional 1 insured insured Banks (head office): Dec. 31, 1934.... 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941.... 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 3... 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951.... 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1965___ 14,309 13,804 6,221 4,815 1,406 7,583 7,320 263 328 177 Dec. 31, 1970___ 14,181 13,688 5,768 4,621 1,147 7,920 7,735 185 328 165 Dec. 31, 1971___ 14,273 13,784 5,728 4,600 1,128 8,056 7,875 181 326 163 Dec. 31, 1972___ 14,413 13,928 5,705 4,613 1,092 8,223 8,017 206 325 160 Dec. 31, 1973___ 14,653 14,172 5,737 4,661 1,076 8,435 8,229 206 321 160 Dec. 31, 1974___ 14,936 14,457 5,782 4,710 1,072 8,675 8,438 237 319 160 June 30, 1975___ 15,048 14,570 5,796 4,732 1,064 8,774 8,526 248 322 156 Branches, additional offices, and facilities: Dec. 31. 1934........................................... 3,133 3,007 2,224 1,243 981 783 783 126 Dec. 31, 1941........................................... 3,699 3.564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 3......................................... 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951. 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1965. 16,471 15,756 12,298 8,964 3,334 3,458 3.404 54 583 132 Dec. 31, 1970. 22,727 21,643 16,191 12,536 3,655 5,452 5.404 48 891 193 Dec. 31, 1971. 24,299 23,104 17,085 13,272 3,813 6,019 5,979 40 983 212 Dec. 31, 1972. 25,977 24,622 17,954 13,974 3,980 6,668 6,623 45 1,113 242 Dec. 31, 1973. 27,946 26,454 18,966 14,916 4,050 7.488 7,442 46 1,241 251 Dec. 31, 1974. 30,076 28,434 19,946 15,734 4,212 8.488 8,440 48 1,387 255 June 30, 1975. 30,985 29,223 20,349 16,017 4,332 8,874 8,827 47 1,468 294 Changes Jan.-June 30, 1975 Banks: New banks................................................. 160 159 39 10 110 90 20 Placed in receivership............................... —2 -2 -1 -1 -1 Ceased banking operations....................... -4 -4 -4 -4 Suspensions4.............................................. -2 -2 -2 -2 Reopening of suspended bank4............... 2 2 2 2 Consolidations and absorptions: Banks converted into branches............ -36 -34 -16 -9 -7 -18 -18 -2 Other...................................................... -5 -5 -2 -1 -1 -3 -2 -1 Interclass changes: Nonmember to national....................... -2 -2 Nonmember to State member.............. -2 -1 -i State member to national..................... State member to nonmenber................ National to nonmember....................... -8 National to State member.................... -1 Noninsured to insured.......................... Noninsured mutual to insured mutual. 5 -5 Net change................................................ 112 113 14 22 -8 99 11 3 -4 Number of banks, June 30, 1975............. 15,048 14,570 5,796 4,732 1,064 ,774 8,526 248 322 156 Branches and additional offices: De novo.................................................................... 956 836 481 381 100 355 354 47 Banks converted....................................................... 36 34 19 18 1 15 15 Discontinued............................................................. -91 -89 -76 -52 -24 -13 -13 — i Sale of branch........................................................... -1 -1 1 1 Interclass changes: Nonmember to national...................................... -17 -17 Nonmember to State member............................ 1 -1 -1 State member to national................................... -40 State member to nonmember.............................. -13 13 National to State member.................................. -98 98 National to nonmember..................................... -27 Noninsured to insured....................................... Noninsured mutual to insured mutual............. -7 Other....................................................................... 9 9 7 10 -3 2 2 Facilities reclassified as branches............................ 2 2 1 1 1 1 Net change.............................................................. 912 792 409 290 "ll9 383 384 81 39 Number of branches and additional offices, June 30, 1975............................................................... 30,791 29,029 20,189 15,868 4,321 8,840 8,793 1,468 294 Banking facilities:5 De novo............................................. 1 1 1 Facilities reclassified as branches.... -2 -1 -1 -1 Discontinued..................................... -2 -2 -2 Interclass changes: National to nonmember.............. -4 -4 Net change........................................ -3 -3 -6 -7 Number of facilities, June 30, 1975. 194 194 160 149 1 National bank figures include 1 bank in Puerto Rico and 1 bank in 4 One bank involved in litigation was suspended and reopened twice. Virgin Islands. 5 Provided at military and other Govt, establishments through arrange­ 2 Insured mutual savings banks figures include 1 to 3 member mutual ments made by the Treasury Dept. savings banks, 1941 to 1962 inclusive, not reflected in total commercial bank figures. Note.—Beginning with 1959, figures include all banks in Alaska and 3 Series revised as of June 30, 1947. The revision resulted in an addition Hawaii, but nonmember banks in territories and possessions are excluded. of 115 banks and 9 branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1975 a BANKING OFFICES A 77 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other area Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including other areas: Dec. 31, 1974.................... 14,334 28,684 14,247 28,627 5,782 20,012 8,465 8,615 87 57 June 30, 1975.................... 14,439 29,469 14,362 29,414 5,796 20,403 8,566 9,011 77 55 F.R. districts, June 30, 1975 Boston............................... 374 2,005 374 2,005 201 1,283 173 722 New Yorki....................... 484 4,507 484 4,507 317 3,904 167 603 Philadelphia...................... 399 2,139 399 2,139 260 1,374 139 765 Cleveland.......................... 768 2,505 768 2,505 459 1,998 309 507 Richmond......................... 794 4,195 789 4,195 407 2,515 382 1,680 5 Atlanta.............................. 1,976 2,515 1,939 2,475 657 1,403 1,282 1,072 37 40 Chicago............................. 2,695 3,022 2,695 3,022 929 1,896 1,766 1,126 St. Louis........................... 1,427 1,430 1,427 1,430 429 703 998 727 Minneapolis...................... 1,398 385 1,398 385 508 207 890 178 Kansas City....................... 2,185 618 2,185 618 823 323 1,362 295 Dallas................................ 1,480 441 1,445 426 663 212 782 214 35 15 San Francisco................... 459 5,707 459 5,707 143 4,585 316 1,122 State or area, June 30, 1975: Alabama........................... 294 436 294 436 112 303 182 133 Alaska............................... 9 83 9 83 5 71 4 12 Arizona............................. 16 433 16 433 3 297 13 136 Arkansas........................... 260 297 260 297 83 169 177 128 California.......................... 194 3,531 194 3,531 65 3,035 129 1496 Colorado........................... 269 52 269 52 147 32 122 20 Connecticut....................... 72 556 72 556 26 335 46 221 Delaware........................... 17 132 17 132 5 3 12 129 District of Columbia........ 16 127 16 127 14 117 2 10 Florida............................... 736 167 736 167 327 58 409 109 Georgia... 446 670 446 670 72 394 374 276 Hawaii..., 8 150 8 150 2 11 6 139 Idaho___ 24 196 24 196 10 166 14 30 Illinois 1,217 203 1,217 203 490 117 727 86 Indiana... 406 877 406 877 169 501 237 376 Iowa......... 662 394 662 394 145 119 517 275 Kansas... 614 142 614 142 194 69 420 73 Kentucky. 341 485 341 485 91 281 250 204 Louisiana. 253 561 187 506 62 275 125 231 66 55 Maine___ 45 281 45 281 23 157 22 124 Maryland........... 114 728 114 728 48 440 66 288 Massachusetts... 150 897 150 897 90 665 60 232 Michigan............ 346 1,515 346 1,515 207 1,202 139 313 Minnesota.......... 744 38 744 38 230 21 514 17 Mississippi......... 184 524 184 524 45 229 139 295 Missouri............. 701 293 701 293 175 94 526 199 Montana............ 154 15 154 15 101 11 53 4 Nebraska............ 448 93 448 93 128 49 320 44 Nevada............... 8 109 8 109 5 92 3 17 New Hampshire. 79 104 79 104 47 82 32 22 New Jersey 216 1,379 216 1,379 141 1,160 75 219 New Mexico__ 78 198 78 198 42 121 36 77 New York......... 299 3,152 299 3,152 222 2,970 77 H82 North Carolina. 93 1,565 93 1,565 29 762 64 803 North Dakota.., 171 81 171 81 47 21 124 60 Ohio.................. 497 1,645 497 1,645 331 1,358 166 287 Oklahoma......... 459 100 459 100 209 62 250 38 Oregon.............. 49 429 49 429 8 296 41 133 Pennsylvania..., 399 2,240 399 2,240 262 1,526 137 714 Rhode Island... 16 217 16 217 5 114 11 103 South Carolina. 91 594 86 594 26 307 60 287 South Dakota.. 159 119 159 119 60 85 99 34 Tennessee......... 342 748 342 748 90 406 252 342 Texas................ 1,327 131 1,321 131 613 32 708 99 Utah................. 57 192 57 192 16 134 41 58 Vermont........... 33 134 33 134 17 47 16 87 Virginia............ 291 1,160 291 1,160 175 875 116 285 Washington.... 96 671 96 671 29 548 67 123 West Virginia.. 217 29 217 29 130 18 87 11 Wisconsin........ 621 329 621 329 162 104 459 225 Wyoming.......... 77 2 77 2 59 1 18 1 Other areas: American Samoa2. 3 3 1 2 Guam2................... 1 16 1 16 9 1 7 Puerto Rico3......... 15 216 15 216 22 14 194 Virgin Islands3.... 8 30 8 30 29 7 1 1 Includes Los Angeles branch and 19 New York City branches of 3 are included above in the table as nonmember banks; and nonmember insured nonmember Puerto Rican banks. branches in Puerto Rico include 8 branches of Canadian banks. 2 American Samoa and Guam assigned to the San Francisco District for check clearing and collection purposes. All member branches in Note.—Includes all commercial banking offices in the United States, Guam are branches of California and New York banks. Puerto Rico, and the Virgin Islands on which checks are drawn, including 3 Puerto Rico and the Virgin Islands assigned to the New York District 194 banking facilities. Number of banks and branches differs from that for purposes of Regulation J, “Check Clearing and Collection.” Member in the table on p. A-76 of the Aug. 1975 Bulletin because this table branches in Puerto Rico and all except 7 in the Virgin Islands are branches includes banks in Puerto Rico and the Virgin Islands but excludes banks of banks located in California, New York, and Pennsylvania. Certain and trust companies on which no checks are drawn. branches of Canadian banks (2 in Puerto Rico and 5 in Virgin Islands) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman George W. Mitchell, Vice Chairman Jeffrey M. Bucher Robert C. Holland 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’C onnell, Counsel to the Chairman J. C harles Partee, Managing Director John M. D enkler, Managing Director R obert Solomon, Adviser to the Board Stephen H. A xilrod, Adviser to the Board R obert J. Law rence, Deputy Managing Joseph R. Coyne, Assistant to the Board A rthur L. Broida, Assistant to the Board Director K enneth A. G uenther, Assistant to the Board Stanley J. Sigel, Assistant to the Board G ordon B. Grimwood, Assistant Director John S. Rippey, Assistant to the Board M urray A ltm ann, Special Assistant to the and Program Director for Jay Paul Brennem an, Special Assistant to the Board Contingency Planning Board Norm and R. V. B ernard, Special Assistant W illiam W. L ayton, Director of Equal John J. H art, Special Assistant to the Board to the Board Employment Opportunity Frank O’Brien, Jr., Special Assistant to the B renton C. L eavitt, Program Director for Board Banking Structure D onald J. W inn, Special Assistant to the Peter E. B arn a, Program Director for Board Bank Holding Company Analysis DIVISION OF RESEARCH AND STATISTICS Lyle E. G ram ley, Director Peter M. Keir, Adviser DIVISION OF FEDERAL RESERVE BANK James L. K ichline, Adviser OPERATIONS Joseph S. Zeisel, Adviser LEGAL DIVISION James B. E ckert, Associate Adviser R onald G. Burke, Director Edw ard C. E ttin, Associate Adviser James R. K udlinski, Associate Director John D. H aw ke, Jr., General Counsel John H. K alchbrenner, Associate Adviser *E. M aurice M cW hirter, Associate Director John N icoll, Deputy General Counsel John J. M ingo, Associate Adviser W illiam H. W allace, Associate Director Baldw in B. T u ttle, Assistant General E leanor J. Stockw ell, Associate Adviser W alter A. A lthausen, Assistant Director Counsel R obert M. Fisher, Assistant Adviser Clyde H. Farnsw orth, Jr., Assistant Director C harles R. M cN eill, Assistant to the J. C ortland G. Peret, Assistant Adviser H arry A. G uinter, Assistant Director General Counsel Stephen P. T aylor, Assistant Adviser Thomas E. M ead, Assistant Director A llen L. Raiken, Adviser H elm ut F. W endel, Assistant Adviser P. D. Ring, Assistant Director Gary M. W elsh, Adviser Levon H. G arabedian, 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 C harles L. Ham pton, Director Frederic Solom on, Assistant to the Ralph C. B ryant, Director B ruce M. B eardsley, Associate Director Board and Director John E. Reynolds, Associate Director G lenn L. Cummins, Assistant Director Janet O. H art, Deputy Director R obert F. Gemmill, Adviser W arren N. Min ami, Assistant Director R obert S. Plotkin, Assistant Director Reed J. Irvine, Adviser R obert J. Zem el, Assistant Director *Helen B. Junz, Adviser Sam uel Pizer, Adviser OFFICE OF THE SECRETARY George B. H enry, Associate Adviser DIVISION OF PERSONNEL C harles J. Siegman, Assistant Adviser K eith D. Engstrom , Director Theodore E. A llison, Secretary Edwin M. Trum an, Assistant Adviser G riffith L. G arw ood, Assistant Secretary C harles W. W ood, Assistant Director tR obert Smith III, Assistant Secretary OFFICE OF THE CONTROLLER DIVISION OF BANKING SUPERVISION AND REGULATION John K akalec, Controller T yler E. W illiam s, Jr., Assistant Controller B renton C. L eavitt, Director Frederick R. D ahl, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director W alter W. K reim ann, Director John T. M cClintock, Assistant Director D onald E. A nderson, Assistant Director Thomas A. Sidman, Assistant Director John D. Sm ith, Assistant Director W illiam W. W iles, Assistant Director John E. Ryan, Adviser *On leave of absence. tOn loan 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 A rthur F. Burns, Chairman Paul A. V olcker, Vice Chairman Ernest T. Baughman David P. Eastburn George W. Mitchell Jeffrey M. Bucher Robert C. Holland Henry C. Wallich Philip E. C oldw ell Bruce K. M acLaury Philip C. Jackson, Jr. Robert P. Mayo A rthur L. Broida, Secretary Lyle E. G ram ley, Economist M urray A ltm ann, Deputy Secretary (Domestic Business) Norm and R. V. B ernard, Assistant R obert Solom on, Economist Secretary (International Finance) Thomas J. O’C onnell, General Counsel Edw ard G. Boehne, Associate Economist Edw ard G. Guy, Deputy General Counsel Ralph C. B ryant, Associate Economist John N icoll, Assistant General Counsel Richard G. Davis, Associate Economist J. C harles Partee, Senior Economist Ralph T. G reen, Associate Economist Stephen H. A xilrod, Economist John K areken, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist K arl O. Scheld, Associate Economist A lan R. Holmes, Manager, System Open Market Account Peter D. S ternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council Thomas I. Storrs, fifth federal reserve district, President George B. Rockwell, first federal Edwin S. Jones, eighth 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. Mayer, twelfth federal RESERVE DISTRICT RESERVE DISTRICT William F. Murray, seventh federal 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 Paul A. Volcker 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 John G. Stoides 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. Boysen 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 Industrial Production—1971 Edition. 1972. 383 Functions. 1974. 125 pp. $1.00each; 10or more pp. $4.00 each; 10 or more to one address, $3.50 to one address, $.75 each. each. Annual Report The Performance of Bank Holding Companies. 1967. 29 pp. $.25 each; 10 or more to one address, Federal Reserve Bulletin. Monthly. $20.00 per $.20 each. year or $2.00 each in the United States and its 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 Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Regulations of the Board of Governors of the 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Federal Reserve System 10 or more to one address, $2.50 each. Published Interpretations of the Board of Gov­ The Econometrics of Price Determination Con­ ernors, as of December 31, 1974. $2.50. ference, October 30-31, 1970, Washington, D.C. 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. The Federal Funds Market. 1959. Ill pp. $1.00 Improved Fund Availability at Rural Banks (Re­ each; 10 or more to one address, $.85 each. port and study papers of the Committee on Rural Trading in Federal Funds. 1965. 116 pp. $1.00 Banking Problems). June 1975. 133 pp. $1.00; 10 each; 10 or more to one address, $.85 each. 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 Industrial Production—Revised and New Meas­ ures. 7/71. Studies and papers on economic and financial subjects Revised Measures of Manufacturing Capacity that are of general interest in the field of economic Utilization. 10/71. research. Revision of Bank Credit Series. 12/71. Assets and Liabilities of Foreign Branches of Summaries Only Printed in the Bulletin U.S. Banks. 2/72. (Limited supply of mimeographed copies of full Bank Debits, Deposits, and Deposit Turnover— text available upon request for single copies) Revised Series. 7/72. Yields on Newly Issued Corporate Bonds. 9/72. The Impact of Holding Company Acquisitions on Recent Activities of Foreign Branches of U.S. Aggregate Concentration in Banking, by Banks. 10/72. Samuel H. Talley. Feb. 1974. 24 pp. Revision of Consumer Credit Statistics. 10/72. Operating Policies of Bank Holding Companies— One-Bank Holding Companies Before the 1970 Part II: Nonbanking Subsidiaries, by Robert J. Amendments. 12/72. Lawrence. Mar. 1974. 59 pp. Yields on Recently Offered Corporate Bonds. 5/73. Household-Sector Economic Accounts, by David F. Seiders. Jan. 1975. 84 pp. Capacity Utilization in Major Materials Indus­ The Performance of Individual Bank Holding tries. 8/73. Companies, by Arthur G. Fraas. Aug. 1975. 27 Credit-Card and Check-Credit Plans at Commer­ pp. cial Banks. 9/73. Rates on Consumer Instalment Loans. 9/73. Printed in Full in the Bulletin New Series for Large Manufacturing Corpora­ tions. 10/73. Staff Economic Studies shown in list below. Money Supply in the Conduct of Monetary Policy. 11/73. U.S. Energy Supplies and Uses, Staff Economic REPRINTS Study by Clayton Gehman. 12/73. (Except for Staff Papers, Staff Economic Studies, and Capacity Utilization for Major Materials: Re­ some leading articles, most of the articles reprinted do vised Measures. 4/74. not exceed 12 pages.) Numerical Specifications of Financial Variables and Their Role in Monetary Policy. 5/74. Seasonal Factors Affecting Bank Reserves. 2/58. Inflation and Stagnation in Major Foreign In­ Measures of Member Bank Reserves. 7/63. dustrial Countries. 10/74. Research on Banking Structure and Perform­ Revision of the Money Stock Measures and Mem­ ance, Staff Economic Study by Tynan Smith. ber Bank Deposits. 12/74. 4/66. Changes in Time and Savings Deposits at Com­ A Revised Index of Manufacturing Capacity, mercial Banks, April-July 1974. 1/75. Staff Economic Study by Frank de Leeuw with U.S. International Transactions in 1974. 4/75. Frank E. Hopkins and Michael D. Sherman. 11/66. Monetary Policy in a Changing Financial Envi­ U.S. International Transactions: Trends in ronment: Open Market Operations in 1974. 1960-67. 4/68. 4/75. Euro-Dollars: A Changing Market. 10/69. The Structure of Margin Credit. 4/75. Recent Changes in Structure of Commercial Changes in Bank Lending Practices, 1974. 4/75. Banking. 3/70. New Statistical Series on Loan Commitments at Measures of Security Credit. 12/70. Selected Large Commercial Banks. 4/75. Monetary Aggregates and Money Market Con­ Recent Trends in Federal Budget Policy. 7/75. ditions in Open Market Policy. 2/71. Banking and Monetary Statistics, 1974. Selected Interest Rates, Credit Flows, and Monetary Ag­ series of banking and monetary statistics for 1974 gregates Since 1964. 6/71. only. 2/75, 3/75, 4/75 and 7/75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 Federal Reserve Bulletin □ August 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 DEBITS to deposit accounts, 11 Agricultural loans of commercial banks, 16, 18 Debt (See specific types of debt or securities) Assets and liabilities (See also Foreigners): Demand deposits: Banks, by classes, 14, 16, 17, 18, 30 Adjusted, commercial banks, 11, 13, 17 Federal Reserve Banks, 10 Banks, by classes, 14, 17, 20, 21 Nonfinancial corporations, current, 41 Ownership by individuals, partnerships, and cor­ Automobiles: porations, 24 Consumer instalment credit, 45, 46, 47 Subject to reserve requirements, 13 Production index, 48, 49 Turnover, 11 Deposits (See also specific types of deposits): BANK credit proxy, 13 Accumulated at commercial banks for payment of Bankers balances, 16, 17, 20 personal loans, 24 (See also Foreigners) Banks, by classes, 14, 17, 20, 21, 30 Banking offices: Federal Reserve Banks, 10, 72 Changes in number, 76 Subject to reserve requirements, 13 Par and nonpar, number, 77 Discount rates at Federal Reserve Banks (See Interest Banks for cooperatives, 38 rates) Bonds (See also U.S. Govt, securities): Discounts and advances by Reserve Banks (See Loans) New issues, 38, 39, 40 Dividends, corporate, 41 Yields and prices, 28, 29 Branch banks: EMPLOYMENT, 50, 52 Assets, foreign branches of U.S. banks, 70 Liabilities of U.S. banks to their foreign branches FARM mortgage loans, 42 and foreign branches of U.S. banks, 22, 71 Federal agency obligations, 9, 10, 11 Brokerage balances, 69 Federal finance: Business expenditures on new plant and equipment, 41 Receipts and outlays, 32, 33 Business indexes, 50 Treasury operating balance, 32 Business loans (See Commercial and industrial loans) Federal funds, 5, 16, 18, 21, 27 Federal home loan banks, 37, 38 CAPACITY utilization, 50 Federal Home Loan Mortgage Corporation, 37, 42, 43 Capital accounts: Federal Housing Administration, 42, 43, 44 Banks, by classes, 14, 17, 22 Federal intermediate credit banks, 37, 38 Federal Reserve Banks, 10 Federal land banks, 37, 38, 42 Central banks, 60, 75 Federal National Mortgage Assn., 37, 38, 42, 43, 44 Certificates of deposit, 22 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 10 Commercial banks, 13, 16 U.S. Govt, securities held, 2, 10, 11, 34, 35 Weekly reporting banks, 18, 23 Federal Reserve credit, 2, 4, 10, 11 Commercial banks: Federal Reserve notes, 10 Assets and liabilities, 13, 14, 16, 17, 18 Federally sponsored credit agencies, 37, 38 Banking offices, changes in number, 76 Finance companies: Consumer loans held, by type, 45 Loans, 18, 46, 47 Deposits at, for payment of personal loans, 24 Paper, 25, 27 Loans sold outright, 25 Financial institutions, loans to, 16, 18 Number, by classes, 14 Float, 2 Real estate mortgages held, by type of holder and Flow of funds, 56, 57 property, 42^-4 Foreign: Commercial paper, 23, 25, 27 Currency operations, 9, 10 Condition statements (See Assets and liabilities) Deposits in U.S. banks, 3, 10, 17, 21, 72 Construction, 50, 51 Exchange rates, 75 Consumer credit: Trade, 59 Instalment credit, 45, 46, 47 Foreigners: Noninstalment credit, 45 Claims on, 66, 67, 68, 72, 73, 74 Consumer price indexes, 50, 53 Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 Consumption expenditures, 54, 55 Corporations: Profits, taxes, and dividends, 41 GOLD. Security issues, 39, 40 Certificates, 10 Security yields and prices, 28, 29 Earmarked, 72 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 60 Currency and coin, 3, 16 Stock, 2, 59 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 85 References are to pages A-2 through A-77 although the prefix “A” is omitted in this index HOUSING permits, 50 Production, 48, 49, 50 Housing starts, 51 Profits, corporate, 41 INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 44 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property Insured commercial banks, 14, 16, 17, 24, 76 mortgaged, 42-A4 Interbank deposits, 14, 20 Reserve position, basic, member banks, 5 Interest rates: Reserve requirements, member banks, 7 Bond and stock yields, 28 Reserves: Business loans of banks, 26 Central banks and govts., 60 Federal Reserve Banks, 6 Commercial banks, 17, 20, 22 Foreign countries, 74, 75 Federal Reserve Banks, 10 Money market rates, 27 Member banks, 3, 4, 13, 17 Mortgage yields, 43, 44 U.S. reserve assets, 59 Prime rate, commercial banks, 26 Residential mortgage loans, 43, 44 Time and savings deposits, maximum rates, 8 Retail credit, 45, 46, 47 International capital transactions of U.S., 61-74 Retail sales, 50 International institutions, 60-64, 66, 67-69, 73 Inventories, 54 SAVING: Investment companies, issues and assets, 40 Flow of funds series, 56, 57 Investments (See also specific types of investments): National income series, 54, 55 Banks, by classes, 14, 16, 19, 30 Savings and loan assns., 31, 35, 42, 44 Commercial banks, 13 Savings deposits (See Time deposits) Federal Reserve Banks, 10, 11 Savings institutions, principal assets, 30, 31 Life insurance companies, 31 Securities (See also U.S. Govt, securities): Savings and loan assns., 31 Federally sponsored agencies, 37, 38 International transactions, 68, 69 LABOR force, 52 New issues, 38, 39, 40 Life insurance companies (See Insurance companies) Yields and prices, 28, 29 Loans (See also specific types of loans): Special Drawing Rights, 2, 10, 58, 59 Banks, by classes, 14, 16, 18, 30 State and local govts.: Commercial banks, 13, 14, 16, 18, 23, 25, 26 Deposits, 17, 20 Federal Reserve Banks, 2, 4, 6, 10, 11 Holdings of U.S. Govt, securities, 34, 35 Insurance companies, 31, 44 New security issues, 38, 39 Insured or guaranteed by U.S., 42, 43, 44 Ownership of securities of, 16, 19, 30 Savings and loan assns., 31 Yields and prices of securities, 28, 29 State member banks, 15, 24, 76 MANUFACTURERS: Stock market credit, 29, 30 Capacity utilization, 50 Stocks (See also Securities): Production index, 49, 50 New issues, 39, 40 Margin requirements, 8 Yields and prices, 28, 29 Member banks: Assets and liabilities, by classes, 14, 16, 17 TAX receipts, Federal, 33 Banking offices, changes in number, 76 Time deposits, 8, 13, 14, 17, 21, 22 Borrowings at Federal Reserve Banks, 4, 10 Treasury currency, Treasury cash, 2, 3 Number, by classes, 14 Treasury deposits, 3, 10, 32 Reserve position, basic, 5 Treasury operating balance, 32 Reserve requirements, 7 Reserves and related items, 2, 4, 13 UNEMPLOYMENT, 52 Mining, production index, 49 U.S. balance of payments, 58 Mobile home shipments, 51 U.S. Govt, balances: Money market rates (See Interest rates) Commercial bank holdings, 17, 20 Money stock and related data, 12 Member bank holdings, 13 Mortgages (See Real estate loans and Residential Treasury deposits at Reserve Banks, 3, 10, 32 mortgage loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 14, 16, 19, 30, 34, 35 Mutual savings banks, 20, 30, 34, 42, 44, 76 Dealer transactions, positions, and financing, 36 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 NATIONAL banks, 14, 24, 76 Foreign and international holdings, 10, 66, 68, 72 National defense expenditures, 33 International transactions, 66, 68 National income, 54, 55 New issues, gross proceeds, 39 Nonmember banks, 15, 16, 17, 24, 76 Open market transactions, 9 OPEN market transactions, 9 Outstanding, by type of security, 34, 35 Ownership, 34, 35 Yields and prices, 28, 29 PAR and nonpar banking offices, number, 77 Utilities, production index, 49 Payrolls, manufacturing index, 50 Personal income, 55 VETERANS Administration, 43, 44 Prices: Consumer and wholesale commodity, 50, 53 WEEKLY reporting banks, 18-22 Security, 29 Prime rate, commercial banks, 26 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 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 © 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 S Sources of funds I, II, 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 Row of funds: Number of banking offices: Assets and liabilities: Analysis of changes ........ Aug. 1975 A-76 1962-73 ...............................Oct. 1974 A-59.14—A-59.28 On, and not on, Federal Flows: Reserve Par List ............ Aug. 1975 A-77 1965-73 ...............................Oct. 1974 A-58—A-59.13 Annually Bank holding companies: Income and expenses: Banking offices and depos­ Federal Reserve Banks Feb. 1975 A-80—A-81 its of group banks, Dec. Insured commercial banks June 1975 A-80—A-81 31, 1974 ........................... June 1975 A-76—A-79 Member banks: Calendar year .....................June 1975 A-80—A-89 Banking and monetary statistics: Income ratios ....................June 1975 A-90—A-95 1974 ......................................... Feb. 1975 A-84—A-85 Operating ratios ................Sept. 1974 A-80—A-85 Mar. 1975 A-79—A-82 Apr. 1975 A-78—A-85 May 1975 337 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