Federal Reserve Bulletin, 1975-09

SEPTEM BER 1975 FEDERAL RESERVE BULLETIN FIN A N C IA L D EV ELO PM EN TS IN THE SEC O N D Q UA RTER OF 1975 C H A NG ES IN TIM E A N D SA V IN G S D EPO SITS, O CTO BER 1974-JA N U A R Y 1975 T R E A SU R Y -FE D E R A L RESER VE FO REIG N e x c h a n g e o p e r a t io n s 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 NUM BER 9 □ VO LU M E 61 □ SEPTEMBER 1975 CO NTENTS 539 Financial Developments A 1 Financial and Business Statistics in the Second Quarter of 1975 A 1 Contents 546 Changes in Time and Savings Deposits A 2 U.S. Statistics at Commercial Banks, A 58 International Statistics October 1974-January 1975 A 84 Board of Governors and Staff 553 Treasury and Federal Reserve A 86 Open Market Committee and Staff; Foreign Exchange Operations Federal Advisory Council 574 Statements to Congress A 87 Federal Reserve Banks and Branches 580 Record of Policy Actions A 88 Federal Reserve Board Publications of the Federal Open Market Committee A 90 Index to Statistical Tables 587 Law Department A 92 Map of Federal Reserve System 600 Announcements Inside Back Cover: 604 Industrial Production Guide to Tabular Presentation Statistical Releases: Reference PUBLICATIONS COMMITTEE 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 B ulletin 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

Financial Developments in the Second Quarter of 1975 This report, sent to the Joint Economic Com­ within the limits of growth sought by the Sys­ mittee of the U.S. Congress on August 22, tem. 1975, has been revised to incorporate later Between late March and early June, most revisions in the monetary aggregates based on short-term rates of interest had fallen about 50 new benchmark data for nonmember banks. basis points. During this period a further dimi­ nution in private demands for short-term credit Growth of the monetary aggregates accelerated tended to offset the upward pressures on money sharply during the second quarter, owing in part market yields that were stemming from enlarged to Federal income tax rebates and supple­ offerings of Treasury securities. However, the mentary benefit payments to social security re­ yield declines during these IVi months were cipients. The completion in June of these special erased in late June when the interest rate expec­ Treasury disbursements contributed to a slow­ tations of market participants began to shift in down in monetary expansion early in the third light of the emerging economic recovery and quarter. In addition, however, the Federal Re­ when the Federal Reserve acted to dampen serve in late June undertook open market monetary expansion. The rise in U.S. interest operations designed to ensure that monetary rates lent additional strength to the dollar in expansion over the longer term would remain international currency markets where the ex- Interest rates Per cent per annum SHORT-TERM LONG-TERM Federal funds A NOTES: * Level of series was affected by Aaa utility issue of new 20-year U.S. Govern­ New issue ment bond in January 1973. Monthly averages except for conventional mortgages (based on quotations for one day each Conventional mortgages v month). Yields: U.S. Treasury HUD / bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; Conventional mortgages, rates on first mortgages Treasury bills in primary markets, unweighted 3-month and rounded to nearest 5 basis points, from Dept, of Housing and F.R.discount rate Urban Development; Corporate bonds, weighted averages of new State and local government publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treas­ ury; State and local govt, bonds (20 issues, mixed quality) Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 Federal Reserve Bulletin □ September 1975 change value of the dollar had been trending large deposit inflows into mortgages. Rates on upward since March, partly in reflection of the mortgages in both primary and secondary mar­ continued strong surplus in the U.S. balance of kets changed little over the quarter. trade. The slack demand for private short-term credit during the second quarter was associated M O N E T A R Y with the sharp liquidation of business invento­ A G G R E G A T E S A N D ries, as well as with record corporate bond M E M B E R B A N K R E SE R V E S issuance and increased equity financing. Be­ cause the heavy demands for long-term funds The narrow money stock—M1—expanded at an developed in the face of expected large Treasury 8.6 per cent seasonally adjusted annual rate in financings, they contributed to a general ad­ the second quarter on a quarterly-average basis, vance in bond yields early in the quarter. as contrasted with a 0.3 per cent rate of decline Thereafter, long-term rates moved in a narrow in the first quarter. The special cash dis­ range until late June when rising short-term bursements by the Federal Government, an im­ rates again subjected bond yields to some up­ portant factor in this rapid growth, totaled $9.6 ward pressure. billion in May and June when most of the The pace of mortgage debt formation quick­ growth in Mx occurred. A large proportion of ened in the second quarter, as savings and loan these funds evidently were held for a time in associations channeled more of their continued depositary form—in most cases demand de- TABLE 1 Changes in selected monetary aggregates In per cent, seasonally adjusted annual rates 1974 1975 Item 1973 1974 Q3 Q4 Ql Q2 NOTES: 'Total reserves less required re­ Member bank reserves: serves for U.S. Government and in­ Total ....................................................... 7.9 8.5 8.2 3.6 — 8t3 1.2 terbank deposits. Required reserves ................................ 7.8 8.8 8.3 2.9 -1.1 1.2 2 Mi is currency plus private de­ Non borrowed ......................................... 7.3 10.7 5.5 36.0 - 1.4 -.2 mand deposits adjusted. Available to support private M2 is Mx plus bank time and sav­ nonbank deposits1 ............................ 9.2 8.9 9.1 .8 -4.7 .5 ings deposits adjusted other than large CD’s. Concepts of money2 calculated from: End-month of quarter— Af3 is M2 plus deposits at mutual M, ............................................................ 6.1 4.8 1.0 5.3 .8 11.2 savings banks and savings and loan M2 ......................................................... 8.8 7.2 4.2 6.7 7.6 13.4 associations and credit union shares. m3 .............................................................. 8.8 6.8 3.9 6.9 9.9 15.6 M4 is M2 plus large negotiable m4 .............................................................. 11.6 10.6 5.8 9.0 6.3 8.6 CDs. .............................................................. 10.6 9.0 4.9 8.4 8.8 12.3 Mr> is M3 plus large negotiable CD’s. Quarterly average— M, .............................................................. 6.3 5.2 3.5 3.9 -.3 8.6 3Savings and loan associations, M.z ......................................................... 8.9 7.7 6.0 6.2 5.8 11.2 mutual savings banks, and credit M-i .............................................................. 9.0 7.1 5.2 5.8 7.8 13.7 unions. m4 .............................................................. 12.0 10.7 8.9 7.3 7.4 6.6 4Total member bank deposits plus Mr, .............................................................. 11.1 9.0 7.2 6.6 8.8 10.6 funds provided by Euro-dollar bor­ rowings and bank-related commer­ Time and savings deposits at: cial paper. Commercial banks (other than large CD’s) ....................................... 11.4 9.4 7.1 7.9 13.4 15.3 Nonbank thrift institutions3 .............. 8.9 6.0 3.3 7.2 13.7 19.3 Note.—Changes are calculated from the average amounts outstand­ Bank credit proxy, adjusted4 ................ 10.4 10.2 6.7 4.2 3.1 7.5 ing in the last month of each quarter, except the quarterly-average calcula­ tions of concepts of money, which Memo (change in billions of are based on changes in the average dollars, seasonally adjusted): Large CD’s ............................................ 19.9 26.5 3.5 5.5 - .5 -5.7 amounts outstanding for a quarter. U.S. Govt, demand deposits at all Annual rates of growth have been member banks .................................. - 1.7 -2.0 1.0 -4.4 -1.2 3.1 adjusted for changes in reserve re­ quirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q2 1975 541 posits—as the growth rate of Mx in June reached Changes in the income velocity of Mj and M2 the highest level for any month since World War Percentage rate of change II. The special Federal payments were largely completed by the middle of June, however, and in early July growth in M1 weakened, at least temporarily. The rapid growth of Mx in the second quarter probably also reflected a strengthening of the underlying transactions demand for money. With a rise in the nominal value of the gross national product, in contrast to the decline dur­ ing the first quarter of the year, the working balances desired by firms and individuals likely were increasing. Continuing lagged adjustments to earlier interest rate declines also may have _ GNP contributed to the vigorous growth in Mx. V,= Because the extraordinary size of the May-June bulge in the money stock was larger than expected or desired, the System moved in late June to dampen somewhat the growth of deposits. As a result of the less accommodative posture of the System’s open market operations, the Federal funds rate—the rate paid by banks when borrowing immediately available funds from other banks and financial institutions—rose Data are at seasonally adjusted annual rates of growth. to around 6 per cent. The broader monetary aggregates—those that typically shows considerable variation over the include consumer-type time and savings depos­ business cycle, and the sizable drop in the ratio its at banks and at nonbank depositary institu­ during the 1974-75 economic downswing is in tions—also showed strong growth in the second broad conformity with past experience. History quarter, particularly in May and June when the suggests that, as the economy recovers from the Federal cash payments to the public were very recession, velocity will rise appreciably—that large. Flows of savings to depositary institutions is, the growth of GNP will outstrip that of the had accelerated sharply in the first quarter in money stock. response to declines in market interest rates, and Commercial banks easily met the depressed the second-quarter disbursements by the Federal second-quarter demands for bank loans out of Government extended this trend. Inflows to the record growth in demand deposits and con­ nonbank thrift institutions—savings and loan sumer-type time and savings deposits. Conse­ associations, mutual savings banks, and credit quently, their reliance on large negotiable unions—were particularly large, rising from a certificates of deposit (CD’s) and nondeposit 13.7 per cent annual rate of growth in the first sources of funds was reduced further. The quarter to 19.3 per cent in the second. An quarterly decline in outstanding CD’s—$5.7 unusually high proportion of these deposit flows billion—was the largest on record, and large went into passbook accounts, thus enabling banks lengthened the average maturity of their consumers to retain their savings in liquid form. CD liabilities. The sharp contraction in CD’s The income velocity of money—whether lowered the growth rates for the money and defined as Vl5 the ratio of GNP to Mx, or V2, credit aggregates in which CD’s are a compo­ the ratio of GNP to M2—continued to decline nent (M4, M5, and the adjusted credit proxy) in the second quarter, although the decline relative to the other monetary aggregates. was smaller than in the first quarter. Velocity The maturity composition of time deposits at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 Federal Reserve Bulletin □ September 1975 member banks changed considerably over the increase of $14 billion in bank holdings of second quarter: those carrying initial maturities Treasury securities was for trading accounts, of 180 days or more increased while those with banks continued to improve their liquidity by shorter maturities declined. Because the longer- adding Government securities to their invest­ term deposits are subject to lower reserve re­ ment portfolios. During the first half of the year, quirements, this shift permitted rapid growth of bank acquisitions of Treasury issues absorbed deposits with only a small increase in reserve roughly 40 per cent of the net cash borrowing aggregates. Total reserves grew only 1.2 per of the Treasury. cent between March and June. Bank investments in other securities also rose during the second quarter after a modest decline in the first. However, much of the growth in other securities represented additions in late B A N K C R E D IT June to holdings of municipal tax warrants, A N D C O M M E R C IA L PA PE R a volatile component of bank portfolios. During the second quarter commercial banks The 9.5 per cent rate of contraction in total continued to acquire large volumes of U.S. loans during the April-June period was the Government securities, as deposits expanded at sharpest for any quarter in the postwar period. the same time that outstanding loans fell at a The decline in business loans was especially rapid rate. While part of the seasonally adjusted large. Inventory liquidation occurred at a post­ war record pace, reducing business needs for short-term financing. In addition, corporations Components of Major categories of continued to restructure their balance sheets by bank credit bank loans raising unprecedented volumes of funds through issuance of long-term debt and equity capital. A large portion of this capital market financing was used to repay short-term debt— principally bank credit—that had grown very rapidly during the 1973-74 period of acceler­ ating inflation and rising interest rates. Besides reducing their obligations to banks, commercial and industrial firms liquidated out­ standing commercial paper obligations, and thus total short-term business financing—commercial paper and bank loans—fell off sharply. The decline in nonfinancial company paper was not matched by increases in finance company paper or bank-related commercial paper, both of which were about unchanged in volume between the end of March and the end of June. Commercial paper rates declined until late in the quarter, when a rise began that paralleled increases in other short-term market rates. Sim­ ilarly, although the prevailing prime rate at banks was reduced in steps over the quarter from IVi to 7 per cent, it was raised above the 7 Q2 Q3 Q4 Ql Q2 Q2 Q3 Q4 Ql Q2 per cent level in early July as banks attempted 1974_______ 1975___________1974_______ 1975 to maintain the wide spread that had prevailed Seasonally adjusted. Total loans and business loans adjusted between business loan rates and money market for transfers between, banks and their holding companies, affiliates, subsidiaries, or foreign branches. yields since the autumn of 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q2 1975 543 TABLE 2 institutions changed little during the quarter. Commercial banks continued to use most of Rate spreads and changes in their available funds to build liquidity through business loans and commercial paper acquisitions of U.S. Treasury securities, and mutual savings banks channeled a large portion Change of their strong net deposit inflows into Govern­ Rate spread In billions of dollars2 Annual ment securities and corporate bonds. Direct and Period (basis rate for indirect support of the mortgage market by the points)’ total Busi­ Commer­ (per Federally sponsored credit agencies declined ness cial Total cent) loans3 paper4 further in the second quarter, as flows of funds to the depositary institutions continued to im­ 1974— prove. Q3 6.8 2.3 9.1 19.4 Q4 1.6 .5 2.1 4.3 Effective interest rates on home mortgages 1975— changed little over the second quarter of 1975, Ql -2.1 .8 - 1.3 -2.6 although the maximum allowable contract rate Q2 -5.0 -1.5 -6.5 - 13.2 on mortgages that are insured by the Federal Apr. 157 -.7 .1 -.6 -3.6 May 192 -1.5 -1.3 -4.1 -17.1 Housing Administration or guaranteed by the June 162 -2.8 -.3 -3.1 -19.2 Veterans Administration was raised from 8 per cent to 8V2 per cent ill late April. Average rates ’Prime rate less 30- to 59-day commercial rate. 2Seasonally adjusted. on new commitments for conventional home 3At all commercial banks based on last-Wednesday-of-month mortgages in the primary market edged up to data; adjusted for outstanding amounts of loans sold to affili­ ates. about 9 per cent in late April, and then changed 4Nonfinancial company paper measured from end-of-month to end-of-month. little over the remaining portion of the quarter. Yields in the secondary mortgage market rose somewhat more sharply in the early part of the N O N B A N K IN T E R M E D IA R IE S A N D T H E M O R T G A G E M A R K E T TABLE 3 Strong deposit inflows during the second quarter Net change in mortgage debt outstanding allowed both savings and loan associations and In billions of dollars, seasonally adjusted annual rates mutual savings banks to continue to rebuild their liquid asset portfolios as well as to repay bor­ 1974 1975 rowings. Savings and loan associations reduced Change— their indebtedness to the Federal home loan Q2 Q3 Q4 Ql Q2‘ banks at a seasonally adjusted annual rate of U B By type of debt: $9 billion. As of June 30, 1975, outstanding Total ............................ 65 50 39 35 51 Federal home loan bank advances to savings and Residential ..................... 44 36 24 26 40 Other1 ............................... 21 14 15 9 1 1 loan associations totaled $16.8 billion, well At selected institutions: down from the record $21.5 billion reported at Commercial banks ___ 17 9 7 r3 2 Savings and loans ___ 23 14 11 17 30 the end of 1974. Mutual savings banks 3 2 (2) 2 2 Net mortgage debt formation rose substan­ Insurance companies 6 5 5 r5 4 FNMA-GNMA ............ 8 8 7 5 3 tially in the second quarter of 1975, following a first-quarter trough that represented the lowest Memo: FHLB advances to S&L’s .......................... r8 6 4 f 3’ 9 rate of increase in mortgage debt in 4 years. The pick-up, concentrated in home mortgages, ’ Includes commercial and other nonresidential as well as can be attributed primarily to increased lending farm properties. by savings and loan associations. Net mortgage 2Less than $500 million. e Estimated. lending at the more diversified private financial r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 Federal Reserve Bulletin □ September 1975 Deposits of savings and loans quarter. Medium maturities were especially and of mutual savings banks prevalent among issues bearing less than an Aa quality rating. Annual rate of change, per ce Offerings of long-term debt issues by foreign private and official institutions in the U.S. mar­ ket were well in excess of $1 billion for the 12 second consecutive quarter. With the elimina­ tion of the interest equalization tax, foreigners 8 have manifested an increased interest in U.S. 4 n capital markets, which are able to absorb more 0 sizable issues than are the markets in other Q2 Q3 Q4 Ql Q2 countries. On occasion, foreign issuers have 1974 1975 also found the costs of borrowing long-term Seasonally adjusted. Changes based on month-end figures. funds in the United States attractive in compari­ son with interest rates in the Euro-bond or other quarter, but declined to a level slightly above markets. 9 per cent by the end of June. Yields on long-term corporate bonds re­ mained at relatively high levels during April and May after having moved up in the latter half of the first quarter. The Federal Reserve yield SE C U R IT IE S M A R K E T S series for newly-issued Aaa-rated utility bonds Gross offerings of new security issues by U.S. remained above 9.5 per cent during both April corporations reached a new high in the second and May, but yields declined in early June when quarter of 1975, totaling $62 billion at a sea­ the Treasury announced that its borrowing re­ sonally adjusted annual rate. New issues of quirements for June and July would be some­ medium- and long-term corporate bonds what less than previously expected. The bond amounted to $50 billion at a seasonally adjusted market rally proved to be short lived, however, annual rate—slightly less than the total in the as the upward movement in short-term interest first quarter. Major stock price indexes rose rates in late June and early July led to investor approximately 15 per cent over the second resistance and hence to a back-up of long-term quarter, after having increased about 20 per cent yields. in the first quarter of 1975. The broad advance Gross new issues of long-term State and local in share prices resulted in a sizable increase in government bonds increased to a record total new stock offerings by corporations, particularly public utilities. Such offerings rose to $12 bil­ lion, at a seasonally adjusted annual rate, com­ TABLE 4 pared with $9 billion in the first quarter and $6 Offerings of new security issues billion in the last quarter of 1974. Industrial corporations continued to account In billions of dollars, seasonally adjusted annual rates for approximately two-thirds of total long-term 1974 1975 borrowings in the second quarter, an extension Type of issue of the pattern that had emerged in the fourth Q2 Q3 Q4 Ql Q2‘ quarter of 1974. These companies sought to restructure their balance sheets by replacing Corporate securities: short-term borrowings with longer-term debt. Total .............................. 34 36 43 61 62 Bonds .............................. 29 30 37 52 50 However, with investors remaining cautious Stocks ............................ 5 6 6 9 12 about lengthening the maturities of their portfo­ State and local govt. bonds ........................... 28 19 r26 r26 32 lios, medium-maturity obligations—those ma­ turing in 15 years or less—accounted for nearly ‘‘Estimated. half of the total of gross new issues during the r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q2 1975 545 of $32 billion, at a seasonally adjusted annual Investor attention was centered on New York rate, during the second quarter of 1975. In part City and its major budget and cash flow prob­ because of the large volume of new issues and lems. The market for New York City’s securi­ in part because investors demanded larger risk ties improved temporarily in mid-June following premiums, yields on municipal securities re­ the establishment of the Municipal Assistance mained at near-record levels over the quarter. Corporation, a State agency designed to help provide a solution to the city’s financial prob­ lems. The Municipal Assistance Corporation TABLE 5 sold $1 billion of new securities in late June and early July—a record amount for the tax-ex- Federal Government empt market. The public’s reception of the borrowing and cash balance offering was not strong, and the bonds subse­ Quarterly totals, in billions of dollars, not seasonally adjusted quently dropped well below their issue prices. The U.S. Treasury continued to be a heavy 1974 1975 Item borrower in the second quarter as the Federal Ql Q2 Q3 Q4 Ql Q2 Government posted a budget deficit of $12.0 billion. The net issuance of Treasury bills to­ Treasury taled $4.6 billion while outstanding coupon financing: Budget surplus, issues were increased by $11.1 billion, mostly or deficit ... -7.1 9.7 --1.6 --12.0 -- 18.0 *c— 12.0 Net cash bor­ in maturities of less than 7 years. In the course rowings, or of providing reserves to the banking system repayments (—) ............ 3.4 --6.4 4.5 10.3 19.5 16.6 during the quarter, the Federal Reserve System Other means of financing1 .. 1.7 --2.5 --3.4 - 1.1 -.8 *—3.6 increased its outright holdings of Treasury se­ Change in cash curities by more than $3 billion, almost twobalance __ -2.0 .8 HI. 5 -2.8 .7 10 thirds of which were coupon issues. Federally spon­ sored credit Yields on short-term Treasury issues rose in agencies, net early April, but then resumed a downward trend cash borrow­ ings2 ........... 5.5 7.7 3.4 -.1 .3 until mid-June. Treasury bill rates declined over most of the quarter despite significant additions Mf.mo bo r ( r n o e w t ing ca s) s : h to offerings in the weekly and monthly bill By Treasury, auctions. Short-term rates reversed their down­ seasonally adjusted an­ ward trend in mid-June, however, and by early nual rate ... r5 r8 r17 r 17 69 100 By Federally July had advanced approximately 1 percentage sponsored point above their mid-June levels. credit agenciesp............ r6 20 25 15 6 -3 Yields on long-term Treasury bonds changed little over the quarter. They backed up modestly 1 Checks issued less checks paid, outlays of off-budget Federal in April, reflecting the apprehension of investors agencies, accrued items, and other transactions. 2 Includes debt of the Federal Home Loan Mortgage Corpora­ about the size and impact of the Federal deficit, tion, Federal home loan banks, Federal land banks, Federal but moved downward in May and early June intermediate credit banks, banks for cooperatives, and Federal National Mortgage Association (including discount notes and when borrowing requirements proved to be securities guaranteed by the Government National Mortgage somewhat lower than had been expected earlier. Association). * Revised after the report was sent to the Joint Economic In late June, however, the upward movement Committee. of short-term interest rates caused long-term ‘‘Estimated. 'Revised. rates to climb moderately higher. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 Changes in Time and Savings Deposits at Commercial Banks, October 1974-January 1975 The rate of growth of time and savings deposits the Federal Deposit Insurance Corporation, total issued to individuals, partnerships, and cor­ IPC time and savings deposits expanded 3.0 per porations (IPC’s) by insured commercial banks cent, or $10.4 billion, not seasonally adjusted, increased somewhat in the 3 months ended after having edged up by only 1.0 per cent in January 31, 1975. According to the quarterly the July-October 1974 period. survey of time and savings deposits conducted Most major categories showed larger in­ in January by the Federal Reserve System and creases—or smaller declines—in the October-January period than during the previous 3 Note.—John R. Williams and Virginia Lewis of the months. Small-denomination (less than $100,- Board’s Division of Research and Statistics prepared this article. 000) time deposits with maturities of more than TABLE 1 Types of time and savings deposits of individuals, partnerships, and corporations held by insured commercial banks on survey dates, Apr. 30, 1974-Jan. 31, 1975 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits 1974 1975 1974 1975 (quarterly rate) Type of deposit July 31- Oct. 31- Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Total time and savings deposits... 14,013 14,099 14,138 14,204 333,090 347,555 350,995 361,388 1.0 3.0 Savings......................................... 13,709 13,810 13,857 13,989 129,928 131,701 132,449 135,856 ,6 2.6 Time deposits in denomina­ tions of less than $100,000—Total................. 13,898 13,957 14,033 14,085 112,245 113,803 114,125 117,985 .3 3.4 Accounts with original maturity of— 13,456 13,421 13,487 13,464 37,592 36,107 34,621 34,628 -4.1 O) 13,558 13,656 13,820 13,792 42,670 41,006 38,744 37,240 -5.5 -3.9 2Vi up to 4 years............... 11,485 11,889 12,099 12,285 14,391 15,326 15,865 17,365 3.5 9.5 4 up to 6 years................... 11,336 17,592 21,364 24,895 27,016 16.5 8.5 6 years and over: Negotiable deposits.... 2,749 1,026 Nonnegotiable deposits 1,417 710 All maturities: Open ac­ counts—Passbook or statement form 2........... 3,682 3,793 3,620 3,769 29,125 29,653 28,643 28,581 -3.4 -.2 Time deposits in denominations of $100,000 or more.......... 7,533 7,855 8,253 8,295 85,130 95,855 98,516 102,082 2.8 3.6 Negotiable CD’s..................* 3,908 3,957 4,217 3,993 60,273 68,212 70,353 71,718 3.1 1.9 Nonnegotiable CD’s and open account..................... 4,228 4,407 4,553 4,763 24,857 27,643 28,163 30,364 1.9 7.8 Christmas savings and other special funds................................ 8,832 8,935 7,994 8,770 5,787 6,196 5,905 5,465 -4.7 -7.5 1 Less than .05 per cent. Corporation. For Apr. 30, July 31, 1974, and Jan. 31, 1975, the in­ 2 Includes time deposits, open account, issued in passbook, state­ formation was reported by a probability sample of all insured commer­ ment, or other forms that are direct alternatives for regular savings cial banks; for Oct. 31,1974, the data for member banks were reported accounts. Most of these are believed to be in accounts totaling less by virtually all such banks and for insured nonmember banks by the than $100,000. The figures shown on this line are included above in same sample of these banks reporting in earlier surveys. the appropriate maturity category. Some deposit categories include a small amount of deposits out­ standing in a relatively few banks that no longer issue these types of Note.—Data were compiled jointly by the Board of Governors of deposits and are not included in the number of issuing banks. Dollar the Federal Reserve System and the Federal Deposit Insurance amounts may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 547 TABLE 2 Small-denomination time and savings deposits, IPC, held by insured commercial banks on Oct. 31, 1974, and Jan. 31, 1975, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits: Issuing banks................. 13,989 13,857 13,219 13,090 770 767 135,856 132,449 56,355 55,031 79,501 77,418 Distribution by most common rate: Total............................ 100 100 100 100 100 100 100 100 100 100 100 100 3.50 or less............. 1.5 2.0 1.5 2.1 .8 1.0 .5 .6 .8 .8 .4 .4 3.51-4.0 0 5.9 6.0 5.8 5.9 7.7 7.9 5.8 5.9 3.8 4.4 7.2 7.1 4.01-4.5 0 7.7 8.3 7.3 7.8 14.6 15.8 20.3 21.1 10.2 10.0 27.4 28.9 4.51-5.0 0 84.9 83.7 85.4 84.2 76.9 75.3 73.4 72.4 85.2 84.8 65.0 63.6 Time deposits in denomina­ tions of less than $100,000: Maturities less than 1 year: Issuing banks................... 13,464 13,487 12,693 12,723 771 764 34,628 34,621 17,115 16,564 17,513 18,057 Distribution by most common rate: Total.............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............... 7.0 10.5 7.0 9.6 6.9 7.8 8.4 8.3 6.6 6.6 10.2 9.8 5.01-5.5 0 93.0 89.5 93.0 90.4 93.1 92.2 91.6 91.7 93.4 93.4 89.8 90.2 Maturities of 1 up to 2l/i years: Issuing banks................... 13,792 13,820 13,029 13,060 763 760 37,240 38,744 25,136 25,849 12,104 12,895 Distribution by most common rate: Total.............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less............... 2.2 2.9 2.3 2.6 1.4 1.6 2.1 1.7 1.5 2.1 3.2 .7 5.51-6.0 0 97.8 97.1 97.7 97.4 98.6 98.4 97.9 98.3 98.5 97.9 96.8 99.3 Maturities of 2Vi years up to 4 years: Issuing banks................... 12,285 12,099 11,547 11,364 738 735 17,365 15,865 11,024 9,765 6,341 6,100 Distribution by most common rate: Total.............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less............... .1 .2 .2 .1 .1 .4 . 1 .3 .1 O) P) .7 5.51-6.0 0 1.9 2.1 1.8 1.9 3.1 2.7 3.1 3.1 1.6 1.4 5.8 5.8 6.01-6.5 0 98.0 97.7 98.0 98.0 96.8 96.9 96.8 96.6 98.3 98.6 94.2 93.5 Maturities of 4 years up to 6 years: Issuing banks................... 11,336 11,024 10,608 10,290 728 734 27,016 24,609 13,250 11,603 13,766 13,006 Distribution by most common rate: Total.............................. 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less............... 1.0 1.8 .9 1.6 3.1 2.1 .7 .4 .2 .5 1.3 .3 6.51-7.0 0 20.5 28.4 21.0 24.6 12.7 13.8 11.4 13.8 15.6 17.8 7.3 10.2 7.01-7.2 5 78.5 69.8 78.1 73.8 84.2 84.1 87.9 85.8 84.2 81.7 91.4 89.5 Maturities of 6 years and over—Negotiable deposits: Issuing banks................... 2,749 2,553 196 1,026 418 608 Distribution by most common rate: Total.............................. 100 100 100 100 100 100 6.00 or less............... .7 .3 6.0 34.3 3.0 55.8 6.01-7.0 0 2.5 2.5 2.6 2.4 5.8 .1 7.01-7.5 0 96.8 97.2 91.4 63.3 91.2 44.1 Maturities of 6 years and over—Nonnegoti­ able deposits: Issuing banks................... 1,417 1,055 362 710 133 577 Distribution by most common rate: Total............................. 100 100 100 100 100 100 6.00 or less............... 2.3 2.4 2.2 5.6 1.1 6.6 6.01-7.0 0 1.0 .3 2.9 6.1 .8 7.3 7.01-7.5 0 96.7 97.3 94.9 88.3 98.1 86.1 1 Less than .05 per cent. For Note, see p. 552. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 Federal Reserve Bulletin □ September 1975 2l/i years expanded by $5.4 billion and contin­ yielding but redeemable at any time without ued to pace the inflow of deposits at commercial penalty—also registered a solid gain, rising $3.4 banks. These long-maturity deposits were at­ billion. tractive to savers because of their relatively Growth among large-denomination ($100,higher offering rates, as permitted under interest 000 and over) instruments remained slow in an rate ceilings established by the bank authorities, environment of weak loan demand. These de­ and because of the general decline in money posits, which had led the expansion in total IPC market rates that persisted throughout the fall time and savings deposits early in 1974 when and winter. Passbook savings deposits—lower banks were aggressively seeking funds to fi- TABLE 3 Average of most common interest rates paid on various categories of time and savings deposits, IPC, at insured commercial banks on January 31, 1975 Time deposits in denominations of less than $100,000 Savings and Maturing in— Bank location and smallsize of bank denom­ Savings (total deposits in ination 6 years and over— millions of dollars) time Total Less than 1 up to deposits 1 year 21/z years 2Yi up to 4 up to 4 years 6 years Negotiable Nonnegodeposits tiable deposits All banks: All size groups................................. 5.47 4.83 6.20 5.46 5.98 6.48 7.21 6.93 7.36 Less than 10................................. 5.71 4.88 6.12 5.47 5.99 6.48 7.18 7.40 7.50 10-50............................................. 5.60 4.90 6.19 5.46 5.98 6.48 7.21 7.40 7.50 50-100........................................... 5.52 4.90 6.23 5.48 5.99 6.50 7.22 7.19 7.45 100-500......................................... 5.41 4.83 6.22 5.46 5.99 6.48 7.22 7.45 7.13 500 and over................................ 5.30 4.76 6.21 5.44 5.97 6.45 7.22 6.34 7.41 Banks in— Selected large SMSA’s1: All size groups............................ 5.35 4.81 6.22 5.45 5.98 6.46 7.22 6.67 7.36 Less than 10............................ 5.53 4.89 6.17 5.47 5.98 6.49 7.15 7.33 7.50 10-50......................................... 5.46 4.91 6.24 5.47 5.99 6.49 7.21 7.29 7.50 50-100....................................... 5.43 4.89 6.23 5.47 5.99 6.49 7.22 7.08 7.50 100-500..................................... 5.35 4.82 6.20 5.46 5.98 6.49 7.22 7.45 7.05 500 and over............................ 5.29 4.76 6.21 5.43 5.97 6.44 7.22 6.28 7.41 All other SMSA’s: All size groups............................ 5.49 4.83 6.22 5.48 5.99 6.49 7.21 7.47 7.29 Less than 10............................ 5.60 4.80 6.23 5.49 5.99 6.50 7.16 7.47 10-50......................................... 5.60 4.85 6.26 5.48 5.99 6.49 7.21 7.46 7.46 50-100....................................... 5.51 4.90 6.18 5.47 5.99 6.49 7.21 7.49 7.40 100-500..................................... 5.45 4.84 6.23 5.48 5.99 6.48 7.22 7.45 7.18 500 and over........................... 5.37 4.72 6.18 5.48 5.99 6.48 7.23 7.50 7.50 Banks outside SMSA’s: All size groups................................ 5.68 4.90 6.17 5.46 5.99 6.48 7.21 7.46 7.47 Less than 10................................ 5.74 4.89 6.11 5.46 5.99 6.48 7.19 7.44 7.50 10-50............................................. 5.67 4.90 6.16 5.45 5.98 6.48 7.21 J. 47 7.50 50-100.......................................... 5.68 4.93 6.30 5.50 5.99 6.50 7.22 7.50 7.50 100-500......................................... 5.53 4.86 6.27 5.45 5.99 6.48 7.22 7.45 7.35 500 and over................................ 5.73 5.00 6.29 5.50 6.00 6.50 7.25 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of popula­ tion in the 1970 Census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-T roy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland Norfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D.C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Bernardino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Y oungstown-Warren Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 549 nance loan expansion, rose only sluggishly be­ increased substantially. At present, ceiling rates tween late summer and the end of the year. of interest on deposits in the two short-maturity Interest rates paid on such time deposits, which categories are 5xh and 6 per cent, respectively, are not subject to interest rate ceilings, contin­ whereas ceilings on the two longer-maturity ued to decline along with money market rates; categories are 6x/2 and l lA per cent, respectively. by the end of January banks paying rates of 7 Some deposits have also flowed into the over-6per cent or less on most new negotiable certifi­ year maturity range, responding to the De­ cates of deposit (CD’s) held nearly 60 per cent cember 1974 revision of Regulation Q that al­ of outstanding CD’s, compared with July 1974 lowed rates of up to IV2 per cent on these when banks paying rates above 10 per cent deposits. Over all, small-denomination time accounted for almost 90 per cent of outstanding deposits with maturities of 2Vi years or more CD’s. Rate declines on large-denomination grew $5.4 billion during the 3 months ended nonnegotiable CD’s and open accounts paral­ January 31; this large expansion more than leled those on negotiable CD’s. offset the $1.5 billion decline in small-denomi­ nation time deposits with less than 2 -year maturities. C O N SU M E R -T Y P E T IM E A N D SA V IN G S D E P O SIT S L A R G E -D E N O M IN A T IO N Inflows of passbook savings deposits accelerated T IM E D E P O SIT S substantially in the 3 months ended January 31, 1975, after two consecutive quarters of only Growth in the volume of large-denomination slight growth. All of the expansion in the vol­ time deposits, which had slowed considerably ume of such deposits occurred among accounts in the fall of 1974, maintained a reduced rate that paid the maximum 5 per cent interest rate. of growth between the end of last October and In January about 27 per cent of savings deposits the end of January 1975. Moreover, offering remained in banks offering less than 5 per cent, rates on these instruments declined for the sec­ down from 32 per cent in January 1974. Over ond consecutive quarter. The lower offering the same period, the proportion of banks by rates on large-denomination time deposits— number paying rates below the Regulation Q negotiable and nonnegotiable CD’s and open ceiling fell to 15 per cent from 21 per cent. accounts—reflected the desire of many com­ Regulation Q ceiling rates on small-denomi­ mercial banks to allow some CD’s to run off nation time deposits continued to encourage since inflows to other deposit categories were savers to substitute longer-maturity time depos­ providing more than sufficient funds to satisfy its for short-maturity deposits. Outstanding time the weak loan demand stemming from the broad­ deposits in small-denominations maturing in ened economic downturn. Furthermore, many less than a year and in 1 to 2Vi years have commercial banks apparently continued policies declined steadily since the revision of deposit designed to curb declining capital/asset ratios ceilings in July 1973. During the same period, and to improve their liquidity position by de­ small-denomination time deposits in the 2Vi- creasing their reliance on money market-type to 4-year and 4- to 6-year maturity ranges have funds. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 Federal Reserve Bulletin □ September 1975 A PP E N D IX TABLE 1 Savings deposits Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 5.00 or 4.00 4.50 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................................................... 13,989 204 830 1,076 11,879 135,856 728 7,853 27,544 99,731 Size of bank (total deposits in millions of dollars): Less than 10......................................................... 5,150 121 511 106 4,412 5,852 61 493 134 5,164 10-50..................................................................... 6,899 71 216 754 5,858 34,167 282 1,121 3,869 28,895 50-100................................................................... 1,170 6 44 103 1,017 16,335 75 546 1,745 13,969 100-500................................................................. 600 5 42 80 473 29,126 (2) (2) 4,646 22,006 500 and over........................................................ 170 1 17 33 119 50,376 (2) (2) 17,150 29,697 TABLE 2 Time deposits, IPC, in denominations of less than $100,000—maturing in less than 1 year Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid Most common rate paid (per cent) (per cent) Group Total Total 5.00 or less 5.50 5.00 or less 5.50 NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................... 13,464 947 12,517 34,628 2,915 31,713 Size of bank (total deposits in millions of dollars): Less than 10..................................................... 4,880 367 4,513 2,144 150 1,994 10-50................................................................. 6,649 469 6,180 10,322 835 9,487 50-100............................................................... 1,163 57 1,106 4,648 146 4,502 100-500............................................................. 601 37 564 7,188 502 6,686 500 and over..................................................... 171 17 154 10,326 1,282 9,044 TABLE 3 Time deposits, IPC, in denominations of less than $100,000—maturing in 1 up to 2\ years Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid Most common rate paid (per cent) (per cent) Group Total Total 5.50 or less 6.00 5.50 or less 6.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................... 13,792 308 13,484 37,240 778 36,462 Size of bank (total deposits in millions of dollars): Less than 10..................................................... 5,091 63 5,028 6,286 53 6,233 10-50................................................................. 6,786 214 6,572 15,275 298 14,977 50-100............................................................... 1,152 20 1,132 3,575 37 3,538 100-500............................................................. 595 5 590 4,960 38 4,922 500 and over..................................................... 168 6 162 7,144 352 6,792 For notes to Appendix Tables 1-8, see p. 552. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 551 TABLE 4 Time deposits, IPC, in denominations of less than $100,000—maturing in years up to 4 years Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid Most common rate paid (per cent) (per cent) Group Total Total 6.00 or less 6.50 6.00 or less 6.50 NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................................................... 12,285 251 12,034 17,365 559 16,806 Size of bank (total deposits in millions of dollars): Less than 10..................................................... 4,132 77 4,055 1,863 59 1,804 10-50.................................................................. 6,286 113 6,173 7,188 115 7,073 50-100................................................................ 1,130 38 1,092 1,973 17 1,956 100-500............................................................. 577 16 561 2,386 65 2,321 500 and over..................................................... 160 7 153 3,955 303 3,652 TABLE 5 Time deposits, IPC, in denominations of $1,000 to $100,000—maturing in 4 years up to 6 years Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid (per cent) Most common rate paid (per cent) Group Ti tal Total 6.50 7.00 7.25 6.50 7.00 7.25 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS All banks...................................................................... 11,336 113 2,322 8,901 27,016 210 3,069 23,737 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 3,731 27 1,079 2,625 1,430 2 379 1,049 10-50........................................................................ 5,794 42 1,021 4,731 8,100 21 1,243 6,836 50-100...................................................................... 1,083 22 130 931 3,720 7 439 3,274 100-500.................................................................... 566 15 77 474 5,691 62 516 5,113 500 and over........................................................... 162 7 15 140 8,075 118 492 7,465 TABLE 6 Time deposits, IPC, in denominations of less than $100,000—maturing in 6 years or more— negotiable and nonnegotiable deposits Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid Most common rate paid (per cent) (per cent) Group Total Total 6.00 7.00 7.50 6.00 7.00 7.50 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS All banks..................................................................... 4,166 55 81 4,030 1,736 391 69 1,276 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 773 4 4 765 50 0) 0) 50 10-50....................................................................... 2,161 6 56 2,099 325 0) 24 301 50-100..................................................................... 674 25 6 643 176 14 1 161 100-500................................................................... 418 14 12 392 327 37 4 286 500 and over........................................................... 140 6 3 131 858 340 40 478 For notes to Appendix Tables 1-8, see p. 552. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 Federal Reserve Bulletin □ September 1975 APPENDIX—Continued TABLE 7 Negotiable CD's, IPC, in denominations of $100,000 or more Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 7.00 More 7.00 More or 7.50 8.00 8.50 9.00 9.50 10.00 than or 7.50 8.00 8.50 9.00 9.50 10.00 than less 10.00 less 10.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks............................ 3,993 1,162 665 870 442 443 292 36 8371,71842,6906,0299,6571,185 3,338 2,9024,936 981 Size of bank (total de­ posits in millions of dollars): Less than 10................. 848 169 175 160 107 125 82 30 309 53 41 55 37 61 53 9 10-50.............................. 2,263 585 350 607 263 259 131 25 43 2,670 774 466 484 344 342 199 27 34 50-100........................... 430 177 73 59 47 15 52 3 4 2,228 883 302 182 180 69 560 50 2 100-500......................... 296 143 49 30 20 33 17 4 6,7023,250 983 721 372 727 606 43 500 and over................. 156 88 18 14 5 11 10 4 659,80937,7304,2378,215 252 2,139 1,4844,816 936 TABLE 8 Nonnegotiable CD’s and open account deposits, IPC, in denominations of $100,000 or more Most common interest rates paid by insured commercial banks on new deposits on January 31, 1975 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 7.00 More 7.00 More or 7.50 8.00 8.50 9.00 9.50 10.00 than or 7.50 8.00 8.50 9.00 9.50 10.00 than less 10.00 less 10.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................ 4,763 1,6861,169 711 511 360 261 45 2030,36415,8173,6975,895 1,601 2,224 852 183 95 Size of bank (total deposits in millions of dollars): Less than 10..................... 388 169 114 65 14 26 91 38 30 15 3 5 10-50.................................. 3,031 908 854 498 337 243 168 11 12 3,554 1,005 928 725 328 341 197 26 4 50-100................................ 768 268 119 84 139 72 78 4 4 2,703 920 427 434 543 234 128 6 11 100-500.............................. 438 253 61 53 30 26 10 3 2 6,3703,412 943 732 488 515 167 (2) (2) 500 and over..................... 138 88 21 11 5 5 5 1 217,646 10,4421,3693,989 242 1,131 360 (2) (2) NOTES TO APPENDIX TABLES 1-8: 1 Less than $500,000. a few banks that had discontinued issuing these instruments but 2 Omitted to avoid individual bank disclosure. still had some deposits outstanding on the survey date. Dollar amounts Note.—Data were compiled from information reported by a may not add to totals because of rounding. probability sample of member and insured nonmember commercial In the headings of these tables under “Most common rate paid banks. The latter were expanded to provide universe estimates. (per cent)” the rates shown are those being paid by nearly all reporting Figures exclude banks that reported no interest rate paid and banks. However, for the relatively few banks that reported a rate in that held no deposits on the survey dates, and they also exclude between those shown, the bank was included in the next higher rate. NOTE TO TABLE 2: Note.—The most common interest rate for each instrument refers While rate ranges of 1/a or Vi of a percentage point are shown in to the basic stated rate per annum (before compounding) in effect on this and other tables, the most common rate reported by most banks the survey date that was generating the largest dollar volume of de­ was the top rate in the range; for example, 4.00, 4.50, etc. Some posit inflows. If the posted rates were unchanged during the 30-day deposit categories exclude a small amount of deposits outstanding in period just preceding the survey date, the rate reported as the most a relatively few banks that no longer issue these types of deposits and common rate was the rate in effect on the largest dollar volume of are not included in the number of issuing banks. deposit inflows during the 30-day period. If the rate changed during Figures may not add to totals because of rounding. that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

553 Treasury and Federal Reserve Foreign Exchange Operations This 27th joint interim report reflects the rates. By the end of January, to finance its Treasury-Federal Reserve policy of making intervention since October, the Federal Reserve available additional information on foreign ex­ had drawn a total of $412.5 million equivalent change operations from time to time. The Fed­ of German marks, Swiss francs, and Dutch eral Reserve Bank of New York acts as agent guilders under the swap arrangements with the for both the Treasury and the Federal Open respective central banks. But with the markets Market Committee of the Federal Reserve Sys­ becoming increasingly nervous, a more forceful tem in the conduct of foreign exchange opera­ approach was clearly needed to avoid the out­ tions. break of disorderly conditions. This report was prepared by Alan R. Holmes, On February 1 senior officials of the Federal Manager, System Open Market Account, and Reserve, the German Federal Bank, and the Executive Vice President of the Federal Reserve Swiss National Bank met in London to conclude Bank of New York, and Scott E. Pardee, Dep­ details of a more forceful intervention approach. uty Manager for Foreign Operations of the On Monday, February 3, these central banks System Open Market Account and a Vice Pres­ countered renewed selling pressure on the dollar ident of the Federal Reserve Bank of New York. with concerted intervention. Over that and the It covers the period February through July following day, the Federal Reserve sold a total 1975. Previous reports have been published in of $139.4 million of German marks, Swiss the March and September Bulletins of each francs, Dutch guilders, and Belgian francs. This year beginning with September 1962. operation, and its confirmation by Chairman Burns and officials of the German Federal Bank In late 1974-early 1975 the exchange markets and the Swiss National Bank, prompted a sharp were subject to an almost unremitting diet of rebound for the dollar. bearish news for the dollar. Mounting evidence Subsequent events, including the further de­ showed that the U.S. economy was slipping into cline in interest rates in the United States and severe recession. U.S. interest rates were falling the release of sharply higher unemployment more steeply than those in many other countries figures, nonetheless served to reinforce market with no bottom in immediate prospect. U.S. pessimism toward the dollar, which soon came economic policy was still under vigorous de­ under renewed and occasionally heavy selling bate, and traders were concerned over the pos­ pressure. The Federal Reserve continued to in­ sibility of measures that could eventually exac­ tervene as necessary to avoid the outbreak of erbate domestic inflation. In the gloomy at­ disorderly conditions without holding the rate mosphere that developed, the market ignored at any particular level. Consequently, although any favorable news for the economy such as dollar rates fell back to the late-January lows the underlying improvement in the trade balance and below, the retreat was generally orderly. and the slackening in the U.S. rate of inflation. Outright speculative pressure resurfaced, how­ Consequently, the dollar lost its resiliency ever, on February 27, despite the release of in the exchanges. Market forces drove dollar clearly improved U.S. trade figures for January, rates lower nearly every day in increasingly and the Federal Reserve countered forcibly, unsettled trading. Under these circumstances, selling some $104.2 million equivalent of Ger­ the Federal Reserve and European central banks man marks, Swiss francs, Dutch guilders, and had intervened to moderate the decline in dollar Belgian francs. This operation helped to steady Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 Federal Reserve Bulletin □ September 1975 TABLE 1 sage and signing of tax-relief measures to stim­ ulate the U.S. economy also helped to clear the Federal Reserve air. reciprocal currency arrangements Moreover, statements by U.S. officials, em­ In millions of dollars phasizing the fundamental strength in this country’s trade and payments position and Amount Institution of facility, pointing to the Federal Reserve’s recent sub­ July 31, 1975 stantial intervention in the exchanges, reassured Austrian National Bank ............................ 250 the markets that the United States was not National Bank of Belgium ....................... 1,000 pursuing a policy of “benign neglect” toward Bank of Canada ........................................... 2,000 National Bank of Denmark ..................... 250 the dollar. Once immediate fears of additional Bank of England ......................................... 3,000 dollar declines began to fade, traders began to Bank of France ............................................ 2,000 respond to a further favorable shift in interest German Federal Bank ................................ 2,000 Bank of Italy .............................................. 3,000 rate differentials as rates in this country firmed Bank of Japan .............................................. 2,000 Bank of Mexico ........................................... 180 somewhat while those elsewhere continued to fall. Consequently, the dollar was gradually bid Netherlands Bank ......................................... 500 Bank of Norway ........................................... 250 up from its lows; by the end of April it had Bank of Sweden ........................................... 300 Swiss National Bank .................................. 1,400 recovered by 4 to 6 per cent against the German Bank for International Settlements: mark and Swiss franc and by similar amounts Swiss francs/dollars ................................ 600 against most major European currencies. Other authorized European currencies/dollars ................................ 1,250 The dollar’s rise was highly tentative at first, Total .................................................. 19,980 and the Federal Reserve continued to intervene in German marks and Swiss francs to prevent the market, and immediate selling pressure a backsliding in rates that threatened to under­ against the dollar lifted. mine a more solid recovery. But intervention Total Federal Reserve sales of currencies in tapered off as the dollar gained resiliency over February amounted to $620 million, of which the course of March and April. In those months $433.1 million was in German marks, $123.3 the System sold a total of $161.6 million of million in Swiss francs, $46.9 million in Dutch marks, $9.5 million of Swiss francs, and $2.1 guilders, and $16.7 million in Belgian francs. million of Dutch guilders. In late March the These operations were all financed by drawings System’s outstanding indebtedness from market under the swap arrangements with the respective operations in late 1974-75 reached a peak of central banks, raising outstanding drawings $1,066.2 million. Of this, $837.8 million was from market operations since late 1974 to $1,- in marks, $159.4 million in Swiss francs, $52.2 032.5 million. million in Dutch guilders, and $16.7 million in In March and April the market atmosphere Belgian francs. gradually improved for the dollar. By that time By that time, however, the Federal Reserve the U.S. trade accounts were shifting into sur­ had begun to buy currencies in the market here plus, in response not only to the deeper reces­ and abroad and from correspondents to repay sion here than elsewhere but also to our im­ debt. In March the System repaid $25 million proved competitive position in world markets. of mark drawings. As the dollar strengthened Inflation was abating more rapidly here than in further in April, the System repaid all of the most other countries. In addition, some of the Swiss and Belgian franc drawings incurred in temporary factors that had depressed the dollar late 1974 and early 1975 and a further $244.6 began to lose force. In particular, reports of million of the German mark drawings. On bal­ disagreement within the Organization of Petro­ ance, therefore, the Federal Reserve had re­ leum Exporting Countries (OPEC) eased some duced its outstanding swap debt incurred since of the immediate concern in the market that the late 1974 to $657 million by April 30. group was on the verge of collectively cutting The dollar’s recovery was not sustained, production and of boosting prices further. Pas­ however, as U.S. interest rates eased once again Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 555 TABLE 2 Federal Reserve System activity under its reciprocal swap lines In millions of dollars equivalent Drawings, or repayments ( —) System System swap swap Transactions with— drawings, 1975 drawings, Jan. 1, July 31, 1975 1975 Ql Q2 ' 16.7 13.1 National Bank of Belgium ........... 261.8 261.8 -29.8 f 45.6 Bank of France ................................ 1 -5.1 -40.5f ' 644.1 63.4 German Federal Bank .................... 218.7 -125.0 -487.7 —413.5 1 49.0 47.3 Netherlands Bank ............................ 3.2 -90.6 ' 152.1 Swiss National Bank ..................... 378.5 371.2 — 159.4 Bank for International Settlements (Swiss francs) .............................. 600.0 600.0 J 861.9 169.4 \ Total ......................................... 1,462.2 H25.0 -772.7 -462.8J 1,232.9 Note.—Discrepancies in totals are due to rounding. early in May. Renewed outflows of liquid funds eral European central banks stepped in and from the United States and the diversion of bought dollars in their own markets. The selling foreign-held funds to other money markets left wave broke quickly, and dollar rates were al­ the dollar vulnerable to crosscurrents in other ready rising when the United States announced markets. Thus, occasional selling pressure that the merchant ship had been freed. against sterling and bursts of demand for French The market nevertheless settled down only francs tended to generate demand for other briefly as the continuing build-up of demand for continental European currencies as well, partic­ French francs set off more generalized selling ularly the German mark and the Swiss franc. of dollars by May 21. As dollar rates declined Adding to the dollar’s softer undertone were sharply, the Federal Reserve again intervened market uncertainties over the implications of the in marks, guilders, and Belgian francs. More­ collapse of non-Communist governments in In­ over, following the Bank of France’s heavy dochina and of renewed tensions in the Middle dollar purchases in Paris, the Federal Reserve East. also intervened in French francs in New York. Consequently, the dollar came on offer in In all, during May 21-23, the Federal Reserve periodically unsettled markets. The Federal Re­ sold a total of $115.6 million of foreign curren­ serve resumed intervention on May 7, selling cies. This concerted intervention was favorably modest amounts of German marks and Dutch received in the market and in the press, and guilders. On May 12 news of the Cambodian as trading conditions improved, the dollar sta­ seizure of a U.S. merchant ship triggered heavy bilized in late May. speculative sales of dollars, and dollar rates fell Over all, during episodes of unsettled trading by some 1 to 1 xh per cent over the next 2 days. in May, the Federal Reserve sold a total of To resist a cumulative erosion of dollar rates, $212.5 million of currencies, of which $157.8 the Federal Reserve intervened in German million was financed by swap drawings and marks, Dutch guilders, and Belgian francs, $54.6 million by balances. Meanwhile, when­ selling a combined total of $69.1 million. Sev­ ever market conditions permitted, the System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 Federal Reserve Bulletin □ September 1975 continued to buy currencies, and it repaid $79.2 marks continued through late July, and by the million of drawings in May. On balance, there­ month-end all drawings in that currency had fore, outstanding drawings rose to $735.6 mil­ been liquidated as well. lion. In sum, in intervention during the 6-month In June and July the balance of market forces period February through July, the Federal Re­ tipped increasingly in favor of the dollar. By serve sold a total of $1,045 million of foreign that time, the U.S. trade account had moved currencies, of which $848 million was financed decisively into surplus. Growing signs of a U.S. by drawings on swap lines with the respective economic recovery also helped bolster central banks and $197 million was from bal­ confidence in the dollar by dispelling fears of ances acquired in the market or from corre­ an even more serious downturn and clearing spondents. All of these drawings, plus some away the market’s expectation of further sharp $412.5 million carried over from late declines in U.S. interest rates. Economic re­ 1974-early 1975, were fully repaid by July 31. covery abroad was still lagging, and the market Operations were conducted in five currencies. had shifted to expect additional stimulative In marks, the System sold $740.6 million, of measures, including lower interest rates, in sev­ which $543.6 million was drawn under the swap eral foreign countries. At first, the favorable line with the German Federal Bank and $197 shift in market psychology led mainly to a firmer million was from balances. In Swiss francs, tone for the dollar, in which the dollar showed sales amounted to $132.8 million, all financed greater resiliency to potentially adverse news or by swap drawings on the Swiss National Bank. events. But following a jump in U.S. interest Aggregate sales of $96.3 million of Dutch rates in late June, the dollar was bid up across guilders, $45.6 million of French francs, and the board. By early July a ground swell of $29.8 million of Belgian francs were also demand developed, as earlier speculative posi­ financed by swap drawings on the respective tions against the dollar were unwound, adverse central banks. On July 31 the Federal Reserve leads and lags were reversed, and arbitrage and had $971.2 million of Swiss franc drawings and investment funds were drawn into New York $261.8 million of Belgian franc drawings, and and the Euro-dollar market. the U.S. Treasury had $1,599.3 million equiva­ Just as the dollar’s decline in late 1974-early lent of Swiss-franc-denominated obligations 1975 had been mainly against major continental with the Swiss National Bank, all outstanding European currencies, its rise was particularly from August 1971. sharp against those currencies as well. Thus, Finally, as previously reported, last Sep­ by the end of July the dollar had climbed against tember the Federal Reserve Bank of New York the German mark by some 9% per cent from acquired the $725 million equivalent of forward mid-May and by almost 11 Vi per cent from the exchange commitments of the Franklin National lows of late February. Dollar rates for other Bank. The last of these commitments matured continental European currencies followed a in August. The residual of funds provided by similar pattern except for the French franc, Franklin to cover the risks of these operations against which the dollar had fallen by 8V2 per reverted, therefore, to the Federal Deposit In­ cent from February through early June before surance Corporation as liquidator of the Franklin fully reversing that decline. National Bank. The Federal Reserve intervened on only four occasions in June and once in July to resist abrupt declines in dollar rates, selling a total G E R M A N M A R K of $39.4 million of marks out of balances. Otherwise, the System took the opportunity of Coming into 1975, expectations of an early a strengthening dollar to acquire currencies to upturn in the German economy and a still fa­ repay debt. The 1974-75 drawings in Dutch vorable outlook for Germany’s trade provided guilders, French francs, and Belgian francs a firm undertone for the mark in the exchanges. were fully repaid by early July. Purchases of A much slower pace of inflation in Germany Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 557 than in its major trading partners, together with February 1, the German and Swiss central banks expanding orders from both Eastern Europe and countered renewed selling pressure on the dollar the OPEC countries, was expected to ensure a through concerted dollar purchases. The Federal continuing large trade surplus and thereby to Reserve followed up in New York with large cushion the German economy from the reces­ offerings of marks as well as other currencies. sions spreading elsewhere in the industrial Over just 2 days, February 3-4, the Federal world. At home, the Government had responded Reserve thus sold $74.4 million of marks to the persistent slowdown in domestic demand financed by drawings on the German Federal by implementing in December a fiscal package Bank. This joint operation, and its confirmation to boost capital investment. In addition, the by officials of the three participating central German Federal Bank had continued to relax banks, prompted a sharp turnaround in rates in its monetary policy, reducing its discount rate which the mark dropped by some 4 per cent in two steps to 6 per cent by December 20 and in 2 days. increasing the banks’ rediscount quotas. Subsequent events, however, served to rein­ Against this background, highly publicized force the mark’s buoyancy. A tapering-off in OPEC direct investments and a reversal of the the rise of Germany’s unemployment rate bulk of last fall’s short-term capital outflows strengthened the view that the recession in Ger­ reinforced the market’s bullish sentiment toward many would be less severe and less prolonged the mark. Moreover, flare-ups of speculation in than in the United States. In addition, the market the Swiss franc, which pushed that currency up still expected the downtrend in German interest sharply in late 1974 and January 1975, also rates to continue to lag well behind that in the tended to pull the mark up against the dollar. United States. Even after the German Federal By late January the mark had advanced some Bank cut its discount and Lombard rates another 16^2 per cent from its early September 1974 Vi percentage point early in February and the lows to $0.4356. The Federal Reserve and the decline in U.S. money market rates began to German Federal Bank, having intervened in slacken, successive reductions in prime rates in modest amounts on a day-to-day basis, then this country tended to confirm the market’s began to stiffen their resistance to further selling expectations. Meanwhile, OPEC representatives pressure against the dollar that threatened to were already speaking of their concern over the disrupt the market. To finance its intervention, weakness of the dollar and of measures that they the Federal Reserve had accumulated by January might take to protect their oil revenues and 31a net $382.7 million of drawings on the swap international reserves from any further depre­ line with the German Federal Bank. ciation. With OPEC countries now diversifying Immediately after the London meeting of a major portion of new dollar receipts into TABLE 3 Drawings and repayments on Federal Reserve System by its swap partners In millions of dollars Drawings, or repayments ( —) Drawings Drawings on on Banks drawing on System System. 1975 System, Jan. 1, July 31, 1975 1975 Ql Q2 July Bank for International Settlements J 45.0 1.0 67.01 (against German marks) ............................. ... [-'45.0 —1.0 —67.0] Total J 45.0 1.0 67.01 1-45.0 -1.0 -67.0] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Federal Reserve Bulletin □ September 1975 continental currencies, a rush of newly issued of which $47.1 million was financed by swap mark-denominated Euro-bonds provided yet an­ drawings and the rest by balances. other outlet for investment in marks. In all, to finance its intervention in February In this atmosphere, the demand for marks and March, the Federal Reserve drew a total pushed the spot rate back to and above its of $480.2 million of marks under the swap line January peak, reaching $0.4395 in late Febru­ with the German Federal Bank and, using part ary. To avoid an outbreak of disorderly condi­ of the balances acquired from the Bank of Italy, tions, the Federal Reserve intervened on 10 of repaid $25 million equivalent of drawings. the 14 business days from February 5 through Thus, by late March outstanding swap drawings February 26, selling a total of $278.2 million in marks had reached a peak of $837.8 million. of marks drawn on the swap line with the Nevertheless, trading conditions had become German Federal Bank. Even after the release generally more settled, and the mark had eased on February 27 of clearly improved U.S. trade to around $0.4240, some 3J/2 per cent below figures for January, the dollar failed to rise and its February highs. The Federal Reserve had, the New York market was soon flooded with therefore, begun to make modest daily pur­ speculative selling out of Europe. The Federal chases of marks in the market both here and Reserve sold a further $56.7 million of marks abroad, accumulating balances for subsequent that day, financed by a swap drawing on the intervention if needed or for repayment of debt. German Federal Bank. This operation, followed By April the outlook for the German economy up with sustaining intervention the next day of was being clouded by the deeper-than-antici- $23.7 million of marks drawn on that Bank, pated recession in Europe. The volume of Ger­ helped set the stage for an improved market many’s export orders had dropped some 20 per atmosphere beginning early in March. cent from the level of the year before, and the By that time U.S. money market rates had loss of export sales was keeping investment leveled off. In Germany, by contrast, short-term depressed. In addition, unemployment was interest rates were easing more rapidly than again rising and, in response to the deteriorating before, and the already favorable arbitrage economic climate, the savings rate shot up to differentials for the dollar continued to widen its highest level in at least 10 years. At the same even though both the German Federal Bank and time German interest rates continued to ease, the Federal Reserve cut their respective discount while U.S. interest rates had firmed somewhat. rates by Vi percentage point early in March. Consequently, the mark edged downward Consequently, some of the immediate selling against the dollar to $0.4180 just after mid­ pressure on the dollar lifted and the mark rate month. With German interest rates now among began to ease. But the turnaround was highly the lowest in Europe, funds also flowed out of tentative, and when activity thinned out in late marks into other European currencies. Indeed, New York trading, the mark rate was frequently for the first time since the third quarter of 1974 bid up again. To avoid a resurgence of specula­ capital outflows from Germany exceeded the tive demand for marks, the Federal Reserve current-account surplus, and the mark declined intervened, selling in the first 4 days of March to its lower limits of the European Community $63.3 million of marks from balances—part of (EC) “snake” where it required occasional the $102.3 million of marks acquired in early support. March from the Bank of Italy in connection with Nevertheless, the market remained uneasy an Italian drawing on the International Monetary over the extent to which OPEC interests were Fund (IMF). Thereafter, the market gradually still shifting into marks from dollars and ster­ settled down, and the Federal Reserve, though ling, especially as the pound came under heavy still prepared to respond to temporary unsettle­ selling pressure late in the month. When these ments in the market, operated on only 5 of the concerns surfaced, the mark was occasionally 12 business days from March 7 through March bid up sharply, and the Federal Reserve inter­ 24. A total of $55.8 million of marks was sold, vened four times in April to sell a total of $42.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 559 million equivalent of marks, of which $31 mil­ whenever market conditions permitted. After lion was from balances and the remainder drawn repaying in May $62.7 million equivalent, the on the swap line with the German Federal Bank. System reduced its mark swap indebtedness by Otherwise, the System took advantage of the another $129.5 million by mid-June. general weakening tendency of the mark to Toward the end of June, a sudden rise in U.S. continue to buy marks in the market and from interest rates triggered renewed bidding for dol­ correspondents to repay debt. Thus, with lars against all currencies. Moreover, the U.S. repayments of $244.6 million, Federal Reserve economy was showing signs of an upturn. By swap drawings in marks had been reduced on contrast, the recession in Germany persisted. balance by $233.1 million to $604.7 million by The German Federal Bank had acted decisively the end of April. in late May to relax monetary policy further with As the dollar’s hesitant April recovery stalled additional cuts in its discount and Lombard rates early in May, the mark began to firm again. to 4V2 per cent and 5V2 per cent, respectively, Amidst concern over a renewed fallback in U.S. and with successive reductions in minimum interest rates, a sharp run-up in the French franc reserve requirements. With short-term German revived fears of a movement of foreign-held money rates again easing, the shifting of interest funds to the Continent. When particularly heavy arbitrage funds out of Germany and the Eurobidding for French francs spilled over into the mark market accelerated. In addition, earlier market for German marks and threatened to speculative positions were reversed, nonresi­ disrupt trading conditions generally on May 7, dents’ long-term investments were increasingly the Federal Reserve sold $17 million of marks, withdrawn, and commercial leads and lags of which $6.9 million was drawn on the swap shifted against the mark. The slide of the spot line and the rest from balances. mark was therefore sustained through the end Five days later, with renewed tensions in of July. By the month-end the rate had dropped Southeast Asia and the Middle East already to as low as $0.3894, some 9Vi per cent below overhanging the exchanges, news of the Cam­ its June high and almost 11V2 per cent below bodian seizure of a U.S. merchant ship triggered its peak in February. another jump for the mark in somewhat con­ As the mark declined, the Federal Reserve fused trading. The Federal Reserve intervened acquired additional balances in the market and in marks as well as in other currencies on May from correspondents to repay debt, stepping up 12-13 to steady the market and sold a total of its purchases on days when the mark was de­ $46.3 million equivalent of marks, of which clining sharply. On the other hand, when the $25.7 million was drawn on the swap line and mark was suddenly bid up in a thin market on the rest from balances. The German Federal June 24 and July 25, the Federal Reserve offered Bank simultaneously intervened and this con­ marks to sell a total of $5.1 million out of certed operation helped to reassure the market. balances. By the end of July the Federal Reserve The mark was again bid up late in May, in had acquired sufficient marks to repay fully the response to a renewed upsurge of the French remaining $464.4 million of mark swap debt. franc, and firmed briefly in early June, in the backwash of a substantial switch of funds from sterling into marks. The Federal Reserve inter­ ST E R L IN G vened during May 21-23 and, to a lesser extent, on three occasions in early June to sell a total By late 1974-early 1975 the United Kingdom of $77.5 million of marks. Of these, $19.3 had begun to slip into recession. Britain’s al­ million was drawn on the swap line with the ready serious wage-price spiral was acceler­ German Federal Bank and the rest was from ating, in sharp contrast to slackening rates of balances. But with the dollar gradually gaining inflation in other major countries. The United greater buoyancy, the Federal Reserve contin­ Kingdom had been financing its large trade ued its program of acquiring marks to repay debt deficit by means of public and private borrow­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Federal Reserve Bulletin □ September 1975 ings abroad. By early 1975, however, the Gov­ its highest level in more than 9 months. Al­ ernment had drawn down most of its $2.5 billion though the rate subsequently eased against the Euro-dollar loan, and borrowings abroad by dollar, sterling gained ground against other Eu­ other public-sector entities were tapering off. At ropean currencies and its effective depreciation the same time the market questioned whether narrowed to 21.1 per cent by late March. Taking the relatively high interest rates in London, advantage of sterling’s relative buoyancy, the which had exerted a pull on nonresident funds, Bank of England made sizable purchases of could be long maintained in view of rising dollars, which were partly reflected in the $300 unemployment and the still worrisome strain on million increase in official reserves over Febru­ corporate profits and liquidity. ary and March. Against this background the market had be­ By early April, however, market sentiment come extremely sensitive to any signs of a toward sterling was turning bearish once again, significant decline in new OPEC investments in as concern over the Government’s upcoming the United Kingdom or of stepped-up di­ budget message shifted the market’s focus back versification of OPEC funds out of sterling and to the underlying conflicts in Britain’s economic into other currencies. Sterling had therefore situation. Unlike elsewhere, the economic come under periodically heavy selling pressure slowdown in Britain was not having a dampen­ around the turn of the year. But the Bank of ing effect on domestic inflation. In fact the rise England had provided forceful support, and in wages had accelerated even further to more after Middle East reassurances of continuted in­ than 30 per cent per annum. Some of the largest vestment in sterling assets, the immediate pres­ wage settlements had been in the public sector, sures had abated. The pound then began to join thereby adding to the burgeoning Government in the generalized advance of European curren­ deficit and potentially intensifying inflationary cies against the dollar, moving up to around pressures all the more. $2.38 by the end of January. At that level, its Yet, in the market’s view, a major move to effective depreciation against Smithsonian cen­ narrow the deficit by raising taxes or by cutting tral rates was around 21.7 per cent. public expenditures threatened only to aggravate By early February the further declines in unemployment. By that time the generalized interest rates in the United States, in the Euro­ public discussion of Britain’s international eco­ dollar market, and on the European Continent nomic policy, which developed in advance of were providing scope for a modest easing of the June 5 referendum on U.K. membership in U.K. interest rates, including a cut in the Bank the EC, was also contributing to exchangeof England’s minimum lending rate. With fa­ market uncertainties. vorable interest incentives for sterling therefore As a consequence the pound once again be­ maintained, liquid funds were again drawn to came vulnerable to bouts of selling. A firming sterling, including OPEC placements. In addi­ of interest rates in the United States and in tion, commercial demand for sterling, along Euro-dollar markets early in April, coupled with with regular purchases by oil companies for tax a further easing of rates in London, prompted and royalty payments and the covering of short some shifts of funds out of sterling, and over positions that had been taken up around the the next 2 weeks the spot rate declined to year-end, buoyed the sterling rate. $2.35!/4 or an effective depreciation of 22.1 per Meanwhile, Britain’s trade account showed cent. On April 15 the Government presented a a striking improvement that was to continue budget designed to limit increases in the publicthrough the first half of the year, as exports sector deficit and to improve the balance of rebounded from depressed fourth-quarter 1974 payments through higher taxes on personal levels and imports fell in response to weakening spending this fiscal year and public spending domestic demand. Thus bolstered by financial cuts next year. The market was impressed with and commercial demand, the pound was bid up its generally restrictive tone but remained con­ to as high as $2.43% just before mid-March, cerned over the still large volume of Govern­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 561 ment borrowing required—running close to 10 position to take forceful action to deal with the per cent of gross national product. The market accelerating wage-price spiral. Nevertheless, in atmosphere therefore remained unsettled, and in the absence of immediate policy proposals, the wake of continued declines in British interest pessimism over Britain’s economic prospects rates including a further reduction in the Bank quickly resurfaced, and the market atmosphere of England’s minimum lending rate, the pound soured. Sterling fell back on June 10, when a tended to ease. large shift of funds out of sterling and into marks Then, over the April 19-20 weekend, a report triggered renewed selling pressures. Although in the London press suggested that the British discussions were initiated between British trade authorities would not be concerned if the pound unions and management representatives on a depreciated a further 4 or 5 per cent. On Mon­ new voluntary scheme for limiting wage claims, day, April 21, the pound immediately came on sterling continued to plunge in bursts of heavy offer. Speculative selling cumulated, as the rec­ selling through the rest of June to a low of ommended nationalization of the financially $2.17% by July 1. This drop of more than 6V2 troubled British Leyland Motor Corporation and per cent against the dollar since late May helped as growing evidence of opposition within the to push the trade-weighted depreciation levels Labor Party to British membership in the EC to a record of 29.2 per cent. contributed to the market’s concern. Against By this time sterling’s erosion in the ex­ this background there was little response in the changes had riveted attention in the British press exchanges to Chancellor of the Exchequer Hea­ and by the public on the need for urgent trade ley’s assurances that the Government did not union, management, and Government agree­ favor a further depreciation of the pound. Spec­ ment on new anti-inflation initiatives. In ad­ ulative positions short of sterling and long of dressing Parliament on July 1, Chancellor Hea­ continental currencies were built up, and sizable ley promised that, if a voluntary mechanism amounts of OPEC funds were shifted into con­ were not established to limit wage increases to tinental currencies. The pound was pushed 10 per cent, the Government would seek legis­ down to $2.30 by mid-May. Meanwhile, ster­ lation on statutory controls. In an initially fa­ ling’s trade-weighted depreciation had widened vorable market response, sterling rebounded to by nearly 4 percentage points from levels in above $2.21 and then held firm after the Trade early March. Union Congress agreed to go along with a At this point the Bank of England, which had voluntary wage-restraint program. The Govern­ been intervening to moderate excessive fluctua­ ment’s specific proposals, outlined to Parliament tions in the sterling rate, stiffened its resistance on July 12, called for strict across-the-board to a further decline and the immediate pressures limits on all pay increases. These would be began to subside. Meanwhile, a rise in short­ enforced by fiscal spending limits in the public term U.K. interest rates was validated by an sector and by stricter adherence to the price code increase in the Bank of England’s minimum in the private sector. lending rate to 10 per cent. As a result, interest The proposals, drawing support from both incentives widened once again, stimulating labor and employers, were well received in the some reflows of funds, which, together with oil market, and some of the uncertainties that had company and other commercial demand, helped been weighing on sterling began to lift. Over to bid the pound back up to above $2.33 in the remainder of July the pound was buoyed late May. Trading activity then slackened as by the covering of positions short of sterling market participants awaited the outcome of the and long of continental currencies that had been June 5 referendum. built up in previous weeks, as well as by sub­ The referendum passed with a decisive two- stantial demand for end-of-month oil tax and to-one majority favoring continued EC mem­ royalty payments. Although by July 31 the spot bership. Sterling at first strengthened on the pound had eased back to $2.15 Vi against the expectation that the Government was now in a dollar, it had gained against major continental Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin □ September 1975 currencies, and the effective trade-weighted de­ repeatedly during the month, at times quite preciation had narrowed to 26.3 per cent. heavily, supplementing its intervention by tightening capital controls further and by re­ quiring banks to balance over-all foreign ex­ change positions daily. The Federal Reserve had SW ISS F R A N C also intervened to sell francs, raising new swap Through much of 1974 Switzerland’s economy drawings on the National Bank to $26.6 million. had operated at almost full capacity, as a con­ Even so, market forces drove the franc persist­ tinuing buoyancy in the export sector helped to ently higher, and by January 27 the spot rate maintain production levels even as domestic had climbed to $0.4195, almost 27 per cent demand slowed. Meanwhile, the inflation rate above its September 1974 low against the dollar held around 10 per cent, lower than in many and up 9 per cent against the German mark. other industrialized countries but still well above With the markets generally nervous and un­ that for Germany, its major trading partner. The settled, the Swiss National Bank joined the Swiss authorities, therefore, continued to pursue German Federal Bank and the Federal Reserve an anti-inflationary program that, after a pro­ in a coordinated intervention approach follow­ posed tax increase was rejected, depended on ing the London meeting of February 1. The a relatively strict monetary stance. This policy Federal Reserve followed up operations in was relaxed only gradually as the domestic Frankfurt and Zurich on February 3 by placing economy weakened late in the year. As a result, offers of francs, together with other currencies, liquidity remained relatively tighter in Switzer­ in the New York market and selling $24.1 land than in the Euro-dollar market or in many million equivalent drawn on the swap line with other continental financial centers. Simulta­ the National Bank. Later, Swiss National Bank neously, a scramble for francs to cover large President Leutwiler publicly confirmed the open speculative positions, the flight of capital weekend agreement and the Swiss intervention. seeking a haven from political uncertainties, and The market responded favorably to this explic­ efforts by OPEC countries to diversify their itly coordinated operation, and the rate dropped large surplus revenues generated periodically to $0.3907 by New York’s opening on February heavy bidding for the Swiss franc. Thus, the 4, fully 63A per cent below its January peak. franc spearheaded the rise of European curren­ Almost immediately, however, generalized cies against the dollar from November 1974 pressure on the dollar re-emerged. With the franc through January 1975. rising once again, the market came to fear that The decline in competitiveness resulting from additional limits on capital inflows would be this sharp appreciation of the franc put new imposed, and funds were increasingly shifted strains on many Swiss export industries already into those Swiss securities still available to hurt by the deepening recession in other coun­ nonresidents. The franc’s rise accelerated tries. To prevent a rise in the rate, the Swiss toward late February, and both the Federal Re­ authorities as early as November 1974 reim­ serve and the Swiss National Bank intervened posed a ban on interest payments to nonresidents to maintain orderly market conditions. Opera­ and a negative charge on new inflows of foreign ting on 10 of the 16 business days from February funds. Moreover, to accommodate an expansion 4 through February 27, the System sold $99.2 of economic activity, the National Bank adopted million of Swiss francs, bringing total sales for a target for liquidity expansion in 1975 of 6 February to $123.3 million equivalent, all per cent. drawn on the swap line with the Swiss National When these moves failed to contain a further Bank. Largely reflecting the joint intervention, strengthening of the franc early in January, the Swiss reserves increased $321 million during Swiss National Bank resumed for the first time that month. in 2 years outright foreign exchange intervention By the end of February the Swiss franc had in Zurich. The National Bank bought dollars peaked at $0.4188, and upward pressure on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 563 rate had tapered off as sentiment toward the instituting specific measures to assist the hardest dollar began to improve. In response to earlier pressed sectors of the economy. In addition, the declines in U.S. and Euro-dollar interest rates, National Bank intervened, buying dollars both the Swiss National Bank lowered its discount in Switzerland and through the Federal Reserve rate from 5x/2 per cent to 5 per cent. Moreover, Bank of New York acting as intermediary. In the National Bank provided for the quarter-end response, the franc held relatively steady needs of commercial banks, largely through through the latter half of April. dollar swaps, so that temporary money market In early May the spot rate was bid up abruptly strains would not exert upward pressure on the as pressure against the dollar re-emerged. The franc. It proposed a gentleman’s agreement Swiss National Bank responded to stepped-up under which commercial banks would report bidding for francs by spot intervention and by large foreign exchange transactions to the cen­ dollar swaps that provided short-term liquidity tral bank to forestall potential destabilizing assistance. But as the dollar continued to decline speculative inflows. And it raised the over-all and markets remained unsettled, the franc con­ ceiling for foreign placements in the Swiss cap­ tinued to be pushed up sharply, with only a brief ital market to encourage long-term outflows, pause after the National Bank further reduced while simultaneously absorbing the remaining its discount and Lombard rates. The spot franc liquidity excess that had not been neutralized soon pushed through the $0.4000 level to a peak by February’s reserve requirement increase. of $0.4065 on May 13. To moderate the rise, Meanwhile, in the exchange market, rumors the Swiss National Bank intensified its spot had begun to circulate—later confirmed—that intervention and on May 30, for the second time the Swiss Government hoped to associate the since April, lowered minimum reserve require­ franc with the EC snake. This prospect at first ments against foreign liabilities to release addi­ unsettled the market, and the Federal Reserve tional domestic liquidity. supplemented its intervention in marks during Early in June market sentiment began to shift early March with offerings of Swiss francs, in favor of the dollar on the prospect of an selling $9.5 million equivalent financed by fur­ earlier economic recovery in the United States ther swap drawings. But soon the market came than in Europe and a renewed firming of short­ to expect that a potential link with the snake term interest rates in this country. At the same would limit the franc’s rise against other Euro­ time, liquidity in Switzerland remained unu­ pean currencies. Moreover, interest differentials sually comfortable ahead of the quarter-end, and in favor of the United States had begun to the Swiss National Bank was called upon to widen. Consequently, the Swiss franc began a provide only about $400 million of the $1 billion sustained decline that carried through the first quarter-end swap assistance it offered. Even so, half of April, not only against the dollar but the Swiss franc held steady throughout June on also against the German mark. Toward the end market concern that large shifts out of sterling of March the Federal Reserve began a program might generate further inflows into continental of moderate purchases of francs from the Na­ currencies. tional Bank against its outstanding swap indebt­ In July the Swiss franc declined in sympathy edness and by April 22 had liquidated all $159.4 with the generalized weakening of European million of its 1974-75 debt. currencies, dropping 9 per cent to a low of By mid-April the Swiss franc had dropped $0.3697 late in the month. But the Swiss franc’s fully IV2 per cent from its record highs of late decline lagged behind that of the mark, which February to $0.3873. Toward midmonth the was depressed by the unwinding of speculative Swiss National Bank moved further to prevent long positions in marks and the liquidation of renewed upward pressure on the franc and to investments in mark-denominated securities. As stimulate a lagging Swiss economy by cutting the franc-mark rate strengthened, prospects of reserve requirements against foreign liabilities, an early link of the franc with the snake faded, lifting ceilings on bank credit expansion, and and those who had built up positions in the hope Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 Federal Reserve Bulletin □ September 1975 that the franc would weaken relative to the mark stance remained relatively restrictive, leaving began to cover their open positions.There was, interest rates in France above those prevailing therefore, sporadically heavy bidding in francs elsewhere and providing incentives for inflows at times throughout the month, which the Swiss of foreign funds and for borrowings abroad by National Bank countered with frequently sizable French enterprises. purchases of spot dollars. As it turned out, the The combination of an improved trade ac­ franc ended the 6-month period virtually un­ count and capital inflows thus buoyed the changed vis-a-vis the mark. But against the franc in the exchanges, and the spot rate rose dollar it dropped IV2 per cent below early-Feb- almost uninterruptedly in early 1975. In January ruary levels and fully 11 lA per cent below its some covering of short positions taken 12 peak in late February. months before, when France withdrew from the EC snake, gave further impetus to the franc’s advance not only against the dollar but also against other continental European currencies. FR E N C H F R A N C This rise continued in February, as the market Throughout 1974 France had been pursuing responded to the generalized weakness of the restrictive monetary and fiscal policies to slow dollar and became increasingly sensitive to the domestic inflation and to reduce its balance of possibility of large OPEC shifts into francs. By payments deficit. By the turn of the year the February 27 the franc had reached a high of pace of price increases, which had reached more $0.2413, up I6V2 per cent from the lows of than 15 per cent per annum, had started to September 1974. To moderate the franc’s ad­ decelerate. In addition, the current account, vance, the Bank of France purchased dollars, plunged sharply into deficit by a $6 billion contributing to the $133 million increase in higher oil bill for 1974, was benefiting from a official exchange reserves in February. striking turnaround in French trade. Indeed, an In March and April, as the recession unusually heavy inventory liquidation, a drop deepened and unemployment rose to twice the in energy requirements, and an improvement in level of 8 months before, France adopted selec­ France’s terms of trade resulting from the tive fiscal measures particularly to stimulate franc’s appreciation since mid-1974 pushed the private investment and the building sector. The trade balance back into surplus by December Bank of France continued to move cautiously 1974—earlier than generally expected—while toward ease, lowering its discount rate in two newly announced export contracts to OPEC steps to 10 per cent by mid-April. Interest rates brightened prospects for 1975. Meanwhile, a abroad were generally lower, however, and ar­ substantial part of France’s current-account def­ bitrage incentives favoring the franc remained icit had been financed both by large-scale bor­ large. In the exchange markets, therefore, the rowings by French enterprises in international franc held relatively firm even as it joined other capital markets, often with Government en­ currencies in easing against the dollar during couragement, and by short-term inflows induced late March and early April. by the relatively high interest rates available in In mid-April, however, the demand for francs France. intensified. France’s trade balance was moving By late 1974, as economic recession spread into sizable surplus. High interest rates in throughout the industrial world, business activ­ France were generating substantial prepayments ity in France had also begun to contract. In by OPEC and other importers of French goods. response, in January 1975 the Bank of France In addition, following recently imposed Swiss began to relax monetary policy cautiously by regulations on foreign currency positions, Swiss cutting the discount rate by 1 percentage point banks were unwinding short French franc posi­ to 12 per cent and by reducing reserve require­ tions. As these commercial, financial, and tech­ ments. But with inflation still higher than in nical demands prompted large shifts of funds many other major countries, the monetary from other currencies, the franc again rose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 565 against the dollar and more generally to within press, helped to brake speculation in favor of reach of its previous central rate against the the franc. Except for a brief flurry of demand mark and other EC currencies. At that point in Europe on May 26, when the New York expectations of a renewed link between the franc market was closed for Memorial Day, the franc and the currencies of other members of the EC fell back, dropping more than 2 per cent to bloc prompted further speculative demand. $0.2470 by May 30 on rumors of possible new On May 9 President Giscard d’Estaing an­ French measures to deter inflows of funds to nounced that, in view of the substantial im­ France. The Federal Reserve took advantage of provement in its trade position, France intended the franc’s decline to purchase francs and liqui­ to rejoin the snake at an early date. This evi­ date $3.1 million of swap debt. dence of official confidence in the franc further In early June the Bank of France moved highlighted the remarkable turnaround in the further to ease monetary policy by, among other French payments position since early 1974. things, reducing its discount rate by another V2 After an initial, hesitant response, traders soon percentage point to 9lA per cent and by liberal­ reacted by bidding the franc up even further. izing credit ceilings for the banks. Never­ Demand became so heavy that the franc began theless, renewed heavy commercial demand and to pull up other currencies with it against the capital inflows soon pushed the franc as high dollar. The Bank of France, which had operated as $0.2516, and the Bank of France again inter­ regularly to moderate the franc’s rise both vened to resist the rise. However, with trading against the dollar and against other European conditions for the dollar by then generally more currencies, intervened more heavily, thereby settled, the Federal Reserve did not intervene. contributing to the $860 million increase in After mid-June the franc began to ease in line official exchange reserves in the March-May with other currencies against the dollar. On June period. Market forces nonetheless drove the 26 French Finance Minister Fourcade indicated franc persistently higher in occasionally hectic that, in view of the improving conditions in trading. domestic financial markets and the strengthening By New York’s opening on May 22, the in the French payments position, there was no franc, at $0.2504, had gained almost 6 per cent need to borrow abroad. Since by then French from mid-April levels and, with the advance borrowers had raised well over %V/z billion accelerating, had risen \Vs per cent in just a abroad in 1975, the market immediately began day and a half. At that point the Bank of France to reassess the outlook for the franc on the and the Federal Reserve agreed that intervention expectation that it would no longer be strength­ by the System in the New York market, in ened by substantial capital conversions. More­ coordination with ongoing intervention in Paris over, the franc came under heavy speculative by the French central bank, would be appro­ selling pressure in response to rumors that it priate to avoid an outbreak of disorderly trading would be formally devalued before France conditions. Around midmorning, the Trading re-entered the EC currency arrangement on July Desk, which had already placed offers of marks 10. As the spot rate dropped, the Bank of France in the market, stepped up its intervention by intervened to cushion the decline through dollar offering sizable amounts of French francs as sales, while the Federal Reserve bought suffi­ well as Dutch guilders and Belgian francs. The cient French francs in the market to liquidate dollar soon steadied against other continental the remaining $42.5 million of outstanding swap currencies, but the French franc remained well debt with the Bank of France. bid. The Federal Reserve, therefore, continued The French Government denied any intention to sell francs throughout the day, bringing total of devaluing the franc, and on July 10 the franc sales to $45.6 million equivalent, financed by returned to the snake at the existing central rate. a drawing on the swap line with the Bank of Speculative pressures against the franc quickly France. evaporated, and the covering of short positions These joint operations, widely reported in the soon pushed the rate up against other EC cur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 Federal Reserve Bulletin □ September 1975 rencies to near the middle of the 2 lA per cent spot and simultaneously selling them forward, band. The franc joined in the general decline to prevent seasonal cash needs from pushing against the dollar, however, which continued domestic interest rates any higher. However, it through the rest of July. By the month-end the did not follow other central banks in reducing spot rate had fallen back to $0.2288, down 9 its discount rate early in February. per cent from its June peak and IV2 per cent Thus, as foreign interest rates eased, interest from the early-February level. incentives favoring the guilder widened. In response, the guilder rose steadily throughout the month, pushing toward the top of the EC snake. The Federal Reserve therefore supple­ N E T H E R L A N D S G U IL D E R mented its intervention in marks and other Eu­ The Netherlands was one of the first countries ropean currencies on February 27 with offerings to take stimulative measures last year as the of guilders and sold $20 million equivalent of economy turned sluggish. As early as Sep­ guilders, financed by a swap drawing on the tember, the Dutch Government moved to reduce Netherlands Bank. Nevertheless, the guilder income taxes, raise investment incentives, and continued to rise, reaching a peak of $0.4285 otherwise establish an expansionary course for on March 3. budgetary policy. On the other hand, the au­ On March 6, when the German Federal Bank thorities kept monetary conditions moderately announced further cuts in its discount and Lom­ firm in an effort to contain inflation, which, bard rates, the Netherlands Bank signaled a although less severe than in many other coun­ relaxation of Dutch monetary policy with a full tries, was still at a rate exceeding 10 per cent. percentage point reduction in its discount rate In addition, the already sizable current-account to 6 per cent. This larger-than-expected cut surplus was expected to be boosted further by generated an immediate response, both in the higher natural gas export receipts. In view of domestic money market and in the exchanges, the strong trade position and relatively taut where the guilder slipped just below the top of money market, the guilder attracted funds from the EC snake while easing back with other abroad at times when the dollar was generally currencies against the dollar. The guilder’s under pressure late in 1974 and early in 1975. downtrend proceeded through most of March Although the Netherlands Bank and the Federal until March 25, when news of King Faisal’s Reserve intervened to buy dollars, the rate had assassination briefly unsettled the markets and climbed more than 13 Vi per cent from lows in prompted an abrupt rise in all European curren­ September 1974 to $0.4175 by the end of Jan­ cies. The Federal Reserve placed small offers uary 1975. At that time $3.2 million of Federal of guilders, together with marks and Belgian Reserve swap debt remained outstanding with francs, in the New York market that day to the Netherlands Bank from operations in De­ avoid further sharp declines in dollar rates. The cember 1974. market soon settled down, however, and the In early February the guilder joined in the System sold only $2.1 million equivalent of renewed upsurge of continental currencies. The guilders, financed on the swap line with the Netherlands Bank bought modest amounts of Netherlands Bank. dollars in Amsterdam on February 3, and the For the next several weeks, even though Federal Reserve followed up in New York by seasonal factors were by now substantially eas­ selling $26.9 million equivalent of guilders ing liquidity in Amsterdam, the Netherlands’ drawn on the swap line. This operation triggered continuing current-account surplus kept the an immediate drop in the guilder rate. Mean­ guilder relatively firm among European curren­ while, the Netherlands Bank continued to pro­ cies, obliging the Netherlands Bank to intervene vide substantial temporary liquidity to the com­ against the German mark at the bottom of the mercial banks, largely by purchasing dollars EC band. In view of the guilder’s position Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 567 within the snake, the Federal Reserve operated outstanding swap drawings on the Netherlands in guilders, along with marks, on four occasions Bank by July 1. from May 7 through May 13, when, first, heavy demand for French francs and, then, the Mayaguez incident threatened to disrupt the ex­ B E L G IA N F R A N C changes. Guilder sales totaling $29.3 million equivalent were financed by swap drawings on As in other countries, business activity in Bel­ the Netherlands Bank, which for its part pur­ gium had begun to slow down late in 1974. chased dollars in moderating the guilder’s rise Nevertheless, upward pressures on domestic in Amsterdam. prices had persisted, fueled by a rapid acceler­ Again on May 21-22, when the guilder was ation of wages, rents, and pension payments that pulled up in an upsurge led by the French franc, are automatically adjusted under price-indexathe Federal Reserve offered guilders along with tion schemes. Thus, the Belgian authorities had other currencies, selling an additional $18 mil­ proceeded cautiously in relaxing restrictive lion equivalent financed by further swap draw­ monetary and fiscal policies. Following earlier ings. By contrast, on days when the guilder reductions in interest rates in other countries, eased, the Federal Reserve purchased sufficient the National Bank cut its discount rate Vi per­ guilders to repay $8.5 million equivalent. On centage point to 8% per cent on January 30, balance, guilder swap commitments rose to a 1975. In the exchanges, steady commercial de­ peak of $91 million by May 27. mand, reflecting Belgium’s widening current- By the end of May, the economic slowdown account surplus, helped to strengthen the Bel­ in the Netherlands was deepening as a result gian franc both against the dollar and against of the continued recession elsewhere in Europe. other EC currencies. By the end of January the Consequently, the Netherlands Bank adopted a Belgian franc had risen almost 15 per cent from generally accommodative monetary stance, al­ its September 1974 lows to $0.029035, while though it temporarily absorbed some of the holding firm at the top of the EC snake. excessive liquidity that emerged from time to Against this background the Belgian franc time. By mid-June, therefore, favorable interest joined in the general rise of European currencies rate differentials had been eroded sufficiently to against the dollar in February. As part of its weaken the guilder against other EC currencies multicurrency intervention, the Federal Reserve as well as against the dollar, which was gener­ sold $10 million equivalent of Belgian francs ally gaining against all of the currencies by that on February 3. When generalized pressures retime. emerged later in the month, it followed up with In addition, the Netherlands Government was sales of $6.6 million equivalent on February 27. putting into place new stimulative economic These sales were financed by drawings on the measures. But as the market responded to the swap line with the National Bank of Belgium. gloomier European economic situation that now For its part, the National Bank made small contrasted sharply with the increasingly opti­ purchases of dollars in Brussels to moderate the mistic outlook for the United States, the guilder advance of the franc rate. It also continued to declined rapidly with other continental curren­ intervene within the EC snake against the Dan­ cies in late June and through July. By the end ish and Norwegian kroner, the currencies then of July the spot rate had fallen almost 113A per at the bottom of the 2% per cent band. In part cent from its March highs to $0.3780, with the reflecting these operations, Belgian official re­ Netherlands Bank occasionally selling modest serves rose $320 million in February. By March amounts of dollars to moderate the drop. Mean­ 3 the Belgian franc had peaked at $0.029500 while, the Federal Reserve had taken advantage before subsequently easing back with the other of the dollar’s buoyancy to buy sufficient European currencies. guilders in the market to liquidate fully the By this time Belgium’s economic dilemma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin □ September 1975 had become more acute. By comparison with rencies against the dollar. In May, therefore, most other countries, its inflation rate was hold­ the Federal Reserve supplemented its interven­ ing rather steady—around 15 per cent, then tion in other currencies with sales of Belgian above that of its major trade partners—even as francs on two occasions when the markets be­ the rate of unemployment increased. Concerned came unsettled. On May 13, after the markets about the potential loss of export competi­ reacted to Cambodia’s seizure of a U.S. mer­ tiveness, the Belgian authorities gradually in­ chant ship by marking dollar rates sharply troduced a series of measures designed both to lower, the System sold $4.3 million equivalent stimulate the economy and to contain inflation­ of Belgian francs along with marks and guilders. ary tendencies. The National Bank reduced its Then on May 22, as a further sharp rise in the discount rate to 6V2 per cent in three steps from French franc led to generalized bidding for March 13 to the end of May, scheduled the continental currencies, the Federal Reserve sold release of commercial bank reserves held in $8.8 million equivalent of Belgian francs along blocked accounts, and allowed bank credit ceil­ with three other currencies. These Belgian franc ings to lapse when they expired. In addition, sales were financed by further swap drawings the Belgian Government announced a 2-month on the National Bank of Belgium. price freeze on May 1 (extended in July for Subsequently, with the dollar generally another 3 months) and outlined various fiscal steadier, the Belgian franc leveled off and then measures to improve corporate liquidity and to began to ease in early June. At the same time, encourage exports. the franc remained relatively firm against other As monetary conditions in Belgium therefore EC currencies. As market conditions permitted, became more comfortable, the favorable interest the Federal Reserve purchased modest amounts differentials vis-a-vis Euro-dollar rates nar­ of francs to liquidate swap debt, and by June rowed. Short-term funds were again placed 23 it had repaid the drawings incurred in May. abroad, and capital exports of nearly $300 mil­ When the dollar rallied against other major lion by Belgian and Luxembourg residents were currencies in late June and through July, the recorded by the end of the first quarter. Whereas Belgian franc also fell off sharply. By the end these outflows weighed on the financial Belgian of July the commercial rate had fallen to franc, the commercial rate was benefiting from $0.026080, some 1IV2 per cent below its March the further strengthening in Belgium’s trade highs. In July the commercial franc also eased surplus that resulted from a deepening recession somewhat against other EC currencies and set­ at home. Consequently, the commercial rate tled toward the middle of the EC band. remained at the top of the EC snake, as the EC currencies retreated from their highs against the dollar. After the German mark settled to its IT A L IA N L IR A lower intervention point, the National Bank of Belgium and the German Federal Bank inter­ During 1974 the Italian authorities had pursued vened in moderate amounts to maintain the a policy of severe monetary restraint to deal with prescribed limits. a massive oil-induced payments deficit, high and As the dollar generally improved early in accelerating inflation, and a weakening lira. By April, the Belgian franc continued its down­ early 1975, price inflation was slowing dramati­ trend, and the Federal Reserve was able to cally from the 25 per cent level of last year. acquire sufficient Belgian francs in the market Moreover, Italy’s trade deficit had narrowed from April 8 through April 18 to repay in full sharply because imports were down drastically the recently incurred $16.7 million swap debt. and exports were holding up, bolstered by a By April 21 the Belgian franc had fallen 3% sharp rise in sales to OPEC countries. These per cent from its March highs to $0.028350. improvements had spurred growing confidence It then began to firm with other European cur­ in the lira which, coupled with record-high Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 569 interest rates in Italy, stimulated substantial re­ steps to relax gradually some of their restrictive flows of funds that had left the country during policies. On March 24, they lifted the 50 per recurrent crises last year. The Bank of Italy was cent import-deposit requirement, thereby re­ therefore able to begin cautiously easing its leasing liquidity to the banking system. Fur­ restrictive monetary policy to counter the thermore, new selective credit facilities for ag­ deepening domestic recession. riculture, exports, and construction were intro­ In this generally more favorable climate, the duced, and the 15 per cent ceiling on bank credit lira joined in the over-all advance of European growth was suspended. As liquidity eased, the currencies against the dollar during February. commercial banks lowered their deposit and By March 3 it had risen 3 per cent to a high lending rates, and in late May the Bank of Italy of $0.001597 and the Bank of Italy had resumed followed up by cutting its discount rate 1 per­ purchasing dollars. Accordingly, the Bank of centage point to 7 per cent. Under these condi­ Italy repaid on March 5 the first $500 million tions, capital imports slowed and the Bank of instalment of the $2 billion gold-pledged credit Italy’s net dollar purchases tapered off. But the it had received from the German Federal Bank rise in European currencies generally against the in 1974. The repayment was financed in part dollar during May pulled the lira higher to from recent reserve gains and in part by a further $0.001608 by June 3. drawing by Italy of $375 million on its out­ By early summer the deep and protracted standing standby credit tranche with the IMF. slowdown in Europe had dimmed hopes for a Of this amount, $102.3 million was drawn in strong growth in Italian exports that might lead German marks, which were then purchased by the country out of its recession. With unem­ the System to be held in connection with its ployment in Italy rising and growing dissat­ operations in German marks. isfaction over the economy dramatized by the Unlike other currencies, the lira held rela­ strong showing of the Communist and Socialist tively firm even as the dollar began to recover Parties in the June 15-16 local and regional in March and April. A further narrowing in elections, expectations mounted that the Gov­ Italy’s trade deficit to $1 billion in the first ernment would be forced to take substantial quarter and continued easing of inflationary reflationary measures. Market sentiment toward pressures provided an improving undertone to the lira worsened, short-term capital flows re­ the lira. As Italian interest rates remained well versed direction, and commercial leads and lags above those elsewhere in Europe, the repatri­ shifted against Italy. Consequently, pressure ation of previous capital outflows intensified. against the Italian lira began to re-emerge after The Bank of Italy therefore was able to purchase mid-June, and the lira joined the subsequent substantial amounts of dollars. Even after Italy’s drop of all European currencies. repayment to the German Federal Bank, liqui­ At the end of July the Italian Government dation of some $400 million of Euro-dollar announced a $5 lA billion package of stimulative borrowings by Italian public corporations, and economic measures. Amidst warnings from large interest payments on foreign debt, Italy’s outgoing Bank of Italy’s Governor Carli that this official reserves by the end of April were about new program could re-ignite inflation and set $300 million above levels at the end of January. the stage for a renewed surge of imports, the Meanwhile, output in Italy in the first quarter lira dropped to $0.001505 by the end of July. had dropped some 13 per cent below the level To cushion the decline, the Bank of Italy re­ of the previous year, as a worsening business sumed heavy dollar sales, which contributed to outlook and a plunge in corporate profits had the $1.2 billion fall in gross official reserves severely depressed investment while the pros­ during June and July. Nevertheless, the lira pect of rising unemployment had contributed to closed 4 per cent lower on balance against the a downturn in private consumption. dollar than its level at the beginning of the The Italian authorities therefore took further reporting period. Against other European cur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin □ September 1975 rencies, however, the lira had advanced some­ alized pressure against the dollar began to fade what. during March, however, the yen also began to ease back from its peak. By the month-end the yen had dropped by some 3 per cent to around $0.003400, before steadying in April. JA P A N E SE Y E N During the spring economic indicators gave Faced with virulent domestic inflation, the Jap­ increasing evidence that Japan was experiencing anese authorities had pursued a policy of eco­ its worst recession since World War II. Output nomic austerity through 1974. By February had actually dropped, and unemployment had 1975 consumer price increases had slowed to topped 1 million persons. At the same time, the about 13 per cent, just half the rate of the year rise in consumer prices slackened further to an before. In addition, as domestic demand fell off annual rate of only about 6 per cent in the first and inventory financing became increasingly quarter, wholesale prices remained steady, and burdensome, Japanese manufacturers acceler­ annual wage settlements averaged only about 13 ated their export shipments and curtailed im­ per cent, compared with close to 30 per cent ports, swinging Japan’s balance of trade dra­ the year before. matically from a sizable deficit to a $2.2 billion The Government therefore was prepared to surplus by the second half of 1974. The market shift to a cautiously expansionary policy to was therefore quickly regaining confidence in stimulate an incipient recovery in industrial the near-term prospects for the Japanese yen. production. It accelerated public works expend­ Moreover, strong reaffirmations by officials of itures and took other selective relief measures. the Bank of Japan and incoming Prime Minister But despite two cuts of V2 percentage point each Miki of Japan’s determination to persist in a in the Bank of Japan’s discount rate to 8 per policy of monetary restraint contrasted sharply cent, monetary policy remained relatively re­ with the worldwide trend toward lower interest strictive and Japanese interest rates remained rates. Consequently, the spot rate began to high. In April and May, foreigners took advan­ strengthen by mid-January from the levels tage of a premium on the forward yen to place around which it had traded for several months. funds in Japanese Government securities on a The yen extended its advance throughout covered basis. In part as a result of these in­ February, in part in sympathy with the sharp flows, the yen firmed again in May, reaching rise of European currencies against the dollar. $0.003443 toward the month-end. But as the In addition, sizable net capital inflows helped premium on the forward yen decreased, these to sustain the rise. New foreign issues by Japa­ inflows tapered off, and with the demand for nese corporations picked up, following the re­ dollars to meet import settlements increasing, laxation of restraint on borrowing abroad for the yen rate began to drift lower in early June. domestic financing needs, and part of the pro­ By that time, revised forecasts in the Japanese ceeds were converted into yen. Foreign pur­ press and elsewhere were pointing to a deeper chases of Japanese stocks and bonds also accel­ and longer lasting worldwide recession than had erated. As capital inflows built up, the market been anticipated earlier and, consequently, pro­ presumed that there was some OPEC diversifi­ jections for Japanese exports were drastically cation into yen, a prospect that further en­ revised downward. In addition, OPEC was dis­ couraged bidding for the currency. cussing the possibility of a substantial hike in By March 4 the spot rate therefore had ad­ oil prices in the fall, raising fears of another vanced 4Vi per cent to $0.003517, the highest large bulge in Japan’s oil import bill. This level since June 1974. The Bank of Japan, significantly worsened outlook for Japanese intervening to moderate the rise, bought dollars trade turned the market abruptly bearish toward during February and early March, which con­ the yen, and the spot rate dropped back sharply tributed to a $644 million official reserve in­ just after midmonth. As the rate fell through crease during those 2 months. Once the gener­ the 295-yen ($0.003390) level, Japanese banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 571 moved to buy dollars. The yen then came heav­ States and as some short positions taken up ily on offer, and the Bank of Japan intervened during the currency’s protracted decline were to sell dollars to moderate the fall in the rate. covered. Moreover, OPEC investors, in seeking These sales reassured the market, and in late to diversify the currency composition of their June the yen bottomed out at $0.003356 in holdings, began making sizable placements in Tokyo. Trading then quieted, and as the market Canadian dollars. Conversions of Canadian came into better balance, the yen held steady provincial issues abroad and positioning ahead throughout July to close the period at of expected future placements also helped to $0.003362, slightly above the levels of last buoy the Canadian currency over the rest of February. February, pushing the rate to as high as $1.0050 by the month-end. As these financial demands subsided, the Canadian dollar then settled back to trade quietly around $1.00 through late C A N A D IA N D O L L A R March. Market sentiment toward the Canadian dollar The market remained pessimistic over the grew increasingly bearish in late 1974 and early Canadian dollar’s near-term prospects, how­ 1975, as the deepening recession in Canada’s ever, leaving the currency vulnerable to re­ major export markets—particularly the United newed-downward pressure. Even as unemploy­ States—led to a serious erosion in Canada’s ment mounted, large wage settlements raised trade balance. Unlike other industrial countries, concern that an upsurge of prices in Canada at which were hard hit by costlier oil imports, a time when inflation was abating elsewhere Canada maintained a small surplus in petroleum could undermine the competitiveness of Cana­ and natural gas products, but its nonenergy dian goods in world markets. Canada’s trade exports fell rapidly. With imports rising, Can­ and current-account deficits had already ada’s current-account deficit widened to more deepened during the first quarter. In addition, than Canadian $1.6 billion in 1974. Moreover, unsettled conditions in the U.S. bond markets that deficit was generally expected to grow fur­ early in April led to postponement of several ther in early 1975 until economic activity abroad planned Canadian borrowings, which left a began to recover. temporary but sizable shortfall in long-term The deterioration in Canada’s trade position capital inflows to finance Canada’s ongoing exerted a heavy drag on domestic economic current-account deficit. activity. As early as November 1974, the Gov­ As market participants responded to these ernment had provided some budgetary stimulus, developments and attempted to unload the Ca­ and monetary policy was also relaxed. Canadian nadian dollars that they had acquired in antici­ money market rates therefore dropped off about pation of forthcoming borrowings, the Canadian in line with declining U.S. interest rates early dollar was driven down progressively through this year, providing little inducement for inflows most of April and early May. The Bank of of arbitrage funds. Prospects were also uncertain Canada intervened with increasing forcefulness for a substantial increase in long-term foreign to cushion the decline, and the spot rate bot­ borrowings needed to finance the mounting cur- tomed out at $0.9659 on May 13, a 4-year low. rent-account deficits. The rate steadied over subsequent days, and Against this background, the Canadian dollar by the end of May the bearish market sentiment generally remained on offer in the exchanges. toward the Canadian dollar began to lift some­ It fell by some 4 per cent against the U.S. dollar what. By that time, Canadian borrowings between mid-1974 and early-February 1975, abroad had resumed and Canada had announced when it slipped below the $1.00 level for the a small trade surplus for April. Moreover, first time since late 1973. The spot rate then short-term Canadian interest rates had moved stabilized, as Canadian interest rates did not up while U.S. interest rates were temporarily follow further interest rate declines in the United declining, thereby widening incentives for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin □ September 1975 short-term funds to flow into Canada. In The wide premiums of Euro-dollar rates over response, the Canadian dollar rebounded to comparable U.S. deposit rates had contracted. $0.9779 by the end of May. In moderating the Many of the banks that had largely withdrawn rise, the Bank of Canada bought U.S. dollars from the market were cautiously stepping up and reduced the net reserve loss in April and their activity. As confidence in the market im­ May to $429 million. proved, many who had turned away from the Over June and July the market for Canadian market during last year’s difficulties began to dollars was steadier, with the spot rate drifting increase their Euro-currency holdings. With the gradually lower in less active trading. Prospects dollar coming under pressure in the exchange for an early recovery of the U.S. economy markets in the first quarter, however, much of bolstered expectations of a recovery of Canadian the expansion in the Euro-currency markets was exports, as did news of potential Canadian grain concentrated in the nondollar sectors, particu­ sales to the Soviet Union and announcement of larly in Euro-marks. a large trade agreement between Canada and By the second quarter, expansion in Euro­ Iran. Moreover, despite the recession in Canada, currency activity had become more broadly the Government’s broadly neutral budget, an­ based, and it soon began to pick up momentum. nounced in late June, was taken as evidence of The revival in medium-term syndicated loans official concern over the continuing high rate was especially pronounced. With the worldwide of inflation. The budget message also included recession deepening and imports dropping in the proposed elimination of withholding taxes nearly all of the industrial countries, developing on foreign purchases of long-term Canadian countries that had embarked on ambitious proj­ securities, providing scope for further inflows. ects at the crest of the boom of world commod­ Meanwhile, conversion of bond issues picked ity demand increasingly looked to the Euro-cur­ up and helped to buoy the Canadian dollar rate rency markets to finance a shortfall of receipts. from time to time. Substantial loans were extended to several Latin These positive factors were more than offset, American countries, such as Mexico and Brazil. however, by Canada’s continuing current-ac­ Indeed, with the fall in petroleum demand count deficit. Consequently, the Canadian dollar worldwide, several OPEC countries reappeared rate eased to $0.9696 at the end of July, still on the borrowing side of the market. Eastern above the early-May low but some 3 per cent European countries were also heavy borrowers. below early-February levels. The Bank of Can­ In addition, large sums were raised by institu­ ada continued to intervene to smooth abrupt tions and firms of a number of major industrial movements in the rate, and official reserves countries, notably France. A high degree of declined by a net of $577 million for the Febru- selectivity continued to characterize the me­ ary-July period as a whole. dium-term markets, however, reflecting both the banks’ concern over mounting balance of pay­ ments pressures in many parts of the world and the desire of many major international banks to E U R O -D O L L A R pay more attention to their capital/asset ratios. During the early months of this year the Euro­ Subsequent to the steep decline of Euro-cur­ currency markets continued to recover from the rency rates late last year, investor interest in severe setbacks to confidence in international Euro-bonds revived significantly too. Thus, banking that had occurred over much of 1974. borrowers seeking to raise funds for longer The hard-hit interbank segment of the market terms than they had been able to secure in 1974, that had actually contracted last summer had or even for medium-term Euro-currency loans begun to expand again, although at a very in 1975, gradually increased their new issues hesitant pace. The multitiered structure of inter­ both through international syndicates and est rates that emerged in the wake of several through private placements. bank failures in major countries had narrowed. A noteworthy feature of these issues was that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 573 most were no longer denominated in U.S. dol­ Euro-dollar interest rates, having declined lars but in the major continental currencies, sharply along with U.S. domestic money rates notably the German mark and also the Dutch from the autumn of 1974 on, leveled off in guilder and the Swiss franc. In addition, several February and March but then eased back to issues were denominated in the European unit 2-year lows in early June. But in response to of account, in the European composite unit, and a rebound in U.S. rates later that month, Euro­ in special drawing rights until the growing dollar rates bounced back in July, so by the strength of the dollar in recent months reduced month-end the 3-month rate stood at 7 per cent. the attractiveness of such multicurrency issues. Reflecting the still strong preferences of many In sharp contrast to past years, virtually all suppliers of funds to the market for short-term issues were offered by non-U.S. borrowers, maturities, the yield curve for Euro-dollar de­ mostly European governments as well as public posits tended to be steeper than for U.S. money and private corporations in industrial countries. market instruments, with differentials between The acceptance of this flood of issues was facil­ 1- and 12-month rates rising at times to more itated by strong interest by OPEC investors. than 2 per cent. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Statements to Congress Statement by Arthur F. Burns, Chairman, prices before the Joint Economic Committee on Board of Governors of the Federal Reserve July 29.1 System, before the Committee on Agriculture As members of this committee may know, and Forestry, U.S. Senate, September 4, 1975. I am not an expert in agricultural matters. In this area I must depend on the specialized knowledge and experience of others. But any­ one familiar with economic principles should be able to see the general price implications of the I am pleased to meet with this committee to developments that I have sketched. discuss the impact of grain sales to the Soviet It is, first of all, a fact that the Soviet Union Union on the outlook for food prices. is experiencing a very disappointing grain har­ Your invitation to testify today was no doubt vest this year, particularly in relation to earlier prompted by my comments on this subject in expectations. Current estimates of the shortfall response to questions by Senator Kennedy when vary, but it is widely agreed that the deficit is I met with the Joint Economic Committee on large. It is also a fact that in order to avoid July 29. At that time news of the adverse effect a drastic reduction in its livestock production of drought on Russian grain harvests and of program, the Soviet Union has entered the world large Soviet purchases from the United States grain market as a buyer of significant quantities. and other countries had already caused sizable This sudden and large addition to demand for increases in our grain prices. Further Soviet the free world’s grain had the predictable effect purchases were widely anticipated as Russian of raising grain prices substantially. By the third crops continued to deteriorate. Meanwhile, our week of August cash wheat prices in this own prospective corn yields were being set back country and also the price of corn for delivery by drought in the Midwest. in December were about 40 per cent higher than These developments dashed hopes that there on July 1—or immediately before the Russian would be significant progress in restoring de­ addition to demand. In recent days these prices pleted world inventories of grain during 1975. have dropped, but they are still about 25 per It now appears that the world still faces an cent above their early July level. uncomfortably tight balance between demand Given the worldwide market for grain, there and supply for wheat and feed grains. is little that we in the United States can do about In view of these developments, concern about this increase in grain prices short of imposing the effects of rising food prices on the over-all export controls. To be effective, such controls rate of inflation is clearly warranted. To a Fed­ could not be restricted to the Soviet Union; they eral Reserve official inflationary developments would have to apply to grain shipments to all are troublesome regardless of the sector in countries. I have at no time advocated such a which they originate. My comments before the step, nor could I do so in circumstances such Joint Economic Committee, however, were not as those now prevailing. Comprehensive export intended to suggest that food prices would rise so drastically that serious consideration should be given to export controls. That was not my judgment then nor is it now. For the record I Available upon request from Publications Services, have attached to this statement a complete, Division of Administrative Services, Board of Gover­ nors of the Federal Reserve System, Washington, D.C. unedited transcript of my comments about food 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 575 controls would constitute a sharp departure from nounced. Making some allowance for the like­ our longer-term economic and agricultural poli­ lihood of further Soviet purchases, I stated on cies and could have unfortunate consequences. August 24, in response to a question on “Face Such a step should be contemplated only in the the Nation,” that the impact on retail food event of a very severe imbalance between de­ prices of sales to the Soviet Union may be on mand and supply. the order of 2 or 2V2 per cent in 1976. As every student of economics knows, The rise in food prices that appears to be American agriculture is highly productive. Our attributable to the Soviet Union’s harvest defi­ farmers are capable of producing—year-in and ciency is thus quite sizable. But a much larger year-out—far more wheat, feed grains, and factor in the retail foQd price outlook is the soybeans than we can consume. Foreign mar­ relentless rise of production and marketing kets have been developed for the excess quanti­ costs, both farm and nonfarm. For example, the ties. These markets must be maintained if Department of Agriculture now expects food American agriculture is to remain relatively free prices to average 9 per cent higher this year from restrictions on production and is to con­ than in 1974, in large part because of increases tinue to make a substantial contribution to our in wages and other nonfarm costs. balance of payments. But in developing these In view of the troubles that inflation has markets we have also assumed responsibilities. already caused, we cannot look upon price in­ Other nations have come to rely on the United creases of this magnitude complacently. In States as a source of supply of food and live­ today’s environment virtually anything that adds stock feed. They need assurance that they will to inflation is deplorable—whatever its source have access to our markets on a regular basis. or size. Nowadays inflation from almost any This element of our foreign economic and agri­ source tends to be built into wages and thus cultural policy must not be tampered with to aggravate the wage-price spiral. Although lightly. there is little we can do about the rise in food Let me turn now to the probable impact of prices in the near term, a major aim of public Soviet grain purchases on our retail food prices. policy should clearly be to end the relentless It is perhaps natural to associate the price of upward march of the general price level. grains with that of bread. This direct effect of We can look forward with reasonable assur­ increased grain prices should not be large, ance to stable food prices if and only if the high however, because the cost of grain accounts for rates of increase in wages and other costs of only a small fraction of the retail price of cereal food production, processing, and marketing and bakery products. In fact, the cost of all subside. Some relief will be obtained, however, farm-produced inputs represents only about when depleted world grain stocks are restored one-fifth of the average retail price of these to levels at which customary variations in annual items. The bulk of the impact of higher grain harvests no longer lead to unduly wide fluctua­ prices on the consumer’s food budget may be tions in grain prices. Earlier this year it appeared expected to occur through their indirect effect that a significant step toward that goal would on the prices of meat and livestock products. be taken in 1975, but it is now evident that we In view of higher feed-grain prices farmers and must wait at least another year. ranchers will tend to produce and market less But we need not wait to seek ways of pre­ meat, poultry, eggs, and milk in 1976 than they venting future disruptions by the Soviet Union otherwise would have. Prices of these items will in our grain markets, and I hope that we will therefore be higher than they would have been. not do so. It seems reasonable to me to expect The Department of Agriculture has indicated the Soviet Union to build up a substantial in­ that the direct and indirect effects of the Russian ventory of grains so that its purchases in our purchases may cause food prices in 1976 to be own and other markets will be less disruptive about IVi per cent higher than they otherwise in the future. Officials of our State and Agricul­ would have been. This estimate is based on ture Departments may well want to explore this Russian purchases already made and an­ matter with their Russian counterparts. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin □ September 1975 Statement by George W. Mitchell, Vice Chair­ mutual savings banks and State-chartered sav­ man, Board of Governors of the Federal Re­ ings and loan associations in Connecticut and serve System, before the Subcommittee on Fi­ Maine will be permitted—by recent State legis­ nancial Institutions Supervision, Regulation lation—to offer demand deposit accounts to the and Insurance of the Committee on Banking, public. On a national basis, the Congress has Currency, and Housing, U.S. House of Repre­ permitted S&L’s to offer certain types of non­ sentatives, September 9, 1975. negotiable transfer accounts, and more recently the Federal regulatory agencies have allowed commercial banks and S&L’s to offer such I am pleased to present the views of the Board transfers over a wider range of transactions. The of Governors of the Federal Reserve System on Federal Reserve and the Federal Deposit Insur­ additional issues raised in connection with Title ance Corporation have permitted commercial I of H.R. 8024, which would extend the au­ banks to accept telephone transfers of funds thority to set interest rate ceilings on deposits from savings accounts to checking accounts. at commercial banks, savings and loan associa­ Moreover, the banking regulatory agencies have tions (S&L’s), and mutual savings banks. As received comments from the public on proposals the Board has indicated in earlier comments on to permit commercial banks to acquire corporate this bill, it believes that it is essential at this savings deposits—a power possessed for some time to extend the authority of the Federal time by the thrift institutions—and to establish regulatory agencies to establish interest rate special types of accounts for use in Individual ceilings. Retirement Act programs. Coordinated application of interest rate ceil­ In considering each of these matters, our ings on deposits has become more complicated position has been to attempt to balance public in the past few years. There have been a series interest factors before arriving at a decision. It of market and regulatory innovations, congres­ is highly desirable to promote increased benefits sional mandates, and changes in State legisla­ to the public in the form of equitable returns tion that have led to modifications in types of to savers, reduced costs to borrowers, and accounts at the various institutions. In conse­ greater convenience and efficiency to the public quence, the traditional distinctions between at large. At the same time regulation of types commercial banks and nonbank thrift institu­ of accounts and maximum rates payable must tions have become increasingly blurred. Some take into consideration the flows of funds to the of these changes have also blurred the distinc­ various institutions, recognizing that housing tion between savings and demand deposits and construction is especially sensitive to develop­ thereby eroded the statutory prohibition on the ments in the mortgage market. The administra­ payment of interest on demand deposits. While tion of interest rate ceilings and deposit struc­ the ceilings have been made more difficult to tures must also recognize the need to move administer, they retain importance in present toward greater competition among financial in­ circumstances for moderating excessively termediaries, while maintaining the viability of disruptive shifts of funds. these institutions. Many of the issues that have come before the In the case of the NOW account experiment, Inter-Agency Coordinating Committee indicate the Board believes that Regulation Q has been the need for a responsive approach to interest administered with appropriate regard for con­ rate ceilings and to deposit structures in light sumer benefits, for the relative competitive po­ of the evolving financial environment. For ex­ sitions of the depositary institutions, and for ample, the negotiable order of withdrawal their financial soundness. At the present time, (NOW) account experiment in the States of the Board has been reviewing the competitive Massachusetts and New Hampshire has pro­ structure in New England in response to peti­ vided thrift institutions with negotiable transfer tions from various groups. The petitioners assert powers that traditionally have been offered by that the commercial banks—by virtue of the commercial banks. In the next few months, NOW account experiment and State action—are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 577 presently, or soon will be, at a competitive ceiling differentials among institutions on disadvantage in the market for consumer sav­ longer-term IRA accounts could place banks at ings. These parties feel commercial banks a significant disadvantage vis-a-vis thrift insti­ should be permitted to offer rates on savings tutions. In the shorter-term markets, where and time deposits equivalent to those offered banks have more than held their own positions, by nonbank thrift institutions. Although this the Board tentatively supports maintenance of matter has not yet been decided, available evi­ the existing ceiling differential. dence suggests that commercial banks in the In the present changing structural environ­ aggregate have not been at a significant com­ ment, the Board believes that Regulation Q petitive disadvantage and thus generally have authority should remain in effect, but the Board been able to maintain their total market share, also believes that the differential in interest rate although often at some higher cost. Where re­ ceilings need not remain static for every type cent State actions are about to change the of account in every circumstance. Moreover, it powers of thrift institutions, as in Connecticut is important for the managements of individual and Maine, there is no evidence available yet institutions to have full freedom to set their to assess developments. Since the situation is deposit interest rates at whatever level they think quite fluid, however, it requires constant moni­ best within the regulatory ceilings, in the light toring. of their particular markets and customers. The question of maintaining existing ceiling Technological advances are changing the capa­ rate differentials has also been raised with rela­ bilities of financial institutions and State legis­ tion to special individual retirement accounts lation is continuing to alter relative competitive (IRA) at commercial banks. The Board invited positions by increasing the powers of one or public comments on various issues raised by another category of financial institutions. In­ these types of accounts, including whether or deed, as these changes occur, unless the Federal not the existing differential between commercial regulatory agencies retain the flexibility to ana­ banks and nonbank thrift institutions should be lyze the appropriateness of the ceiling differen­ eliminated on this type of account. This question tials and to make adjustments where necessary, has not been resolved. undue competitive imbalances will undoubtedly The logic that prompted the Board’s inquiry occur. And in present circumstances such im­ regarding the elimination of the differential had balances could impose disruptions of flows of three bases. First, the IRA deposits are designed funds among financial institutions. to encourage individuals to save for their retire­ In the Board’s judgment there is no need for ment in line with the intent of the Congress. removal, reductions, or increases of existing Attainment of this objective would be en­ interest rate ceiling differentials at this time, couraged by permitting institutions to offer high except perhaps in the special case of IRA de­ rates of interest on IRA deposits. Second, in­ posits now under consideration by the Board. surance companies and mutual funds also accept Over the longer run, however, the Board still IRA funds, and relatively low rate ceilings favors the eventual elimination of not only ceil­ might place commercial banks and thrift insti­ ing differentials but of interest rate ceilings tutions at a disadvantage with these other in­ themselves. In principle we believe that the vestment outlets. Finally, at existing rate ceil­ public interest is best served with minimal gov­ ings, there is evidence that banks have been ernment interference with the payment of as experiencing a declining total share in the high an interest rate to savers as is affordable. longer-term deposit market in which relative We recognize, though, that these goals can only yields play a more important role than liquidity be accomplished in a gradual and systematic and convenience. Since IRA accounts will be fashion if disruptions to financial markets are for the most part of a long-term nature, it to be avoided and institutions are to remain seemed to the Board that maintenance of rate viable. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 Federal Reserve Bulletin □ September 1975 Statement by Philip C. Jackson, Jr., Member, forms on real estate credit transactions be re­ Board of Governors of the Federal Reserve placed by standard forms. Because of the com­ System, before the Committee on Banking, plexity and variety of real property transactions, Housing, and Urban Affairs, U.S. Senate, it was extremely difficult to develop a standard September 15, 1975. RESPA form that was easily applicable to all transactions. Standardization required lenders to change procedures and adapt to the new required Thank you, Mr. Chairman, for the opportunity forms. It required industry personnel to be re­ to present the views of the Board of Governors trained in new truth in lending procedures. of the Federal Reserve System on proposals to Lenders report that this change has proved amend the Real Estate Settlement Procedures costly, without better disclosures on the cost of Act (RESPA) of 1975. The Board has interest credit to consumers as a result of the change. in this legislation as an agency with respon­ Therefore, the Board would recommend that sibilities over creditors and to consumers, as an creditors be permitted to use, for such truth in organization with concerns for monetary condi­ lending disclosures, any form meeting the re­ tions in the Nation, and, finally, as a regulator quirements of the Truth in Lending Act statute, under the truth in lending aspects of the real or at the creditor’s option, the present uniform estate settlement procedures required under the disclosure statement contained in RESPA Act. It is this final matter—the truth in lending forms. aspects of real estate settlement procedures—on Second, the Board has long supported re­ which I would like to concentrate during this quirements that a prospective borrower be given testimony'. proper information in advance on which he can The RESPA has been in effect only a very make decisions on his credit and closing short time. The Board does not know if the costs—especially on such a major undertaking reports of lenders claiming substantial increases as the purchase of real estate. RESPA requires in administrative costs under the required pro­ that truth in lending disclosures be made twice: cedures are correct. Nor do we have any factual once in advance of settlement and again on the evidence of whether or not RESPA has reduced day of settlement. The Board recommends to closing costs to consumers or whether it is likely the Congress that it amend the Real Estate to do so in the future. Settlement Procedures Act to require that the Implementation of RESPA required coordin­ truth in lending disclosures be furnished only ation between the Department of Housing and to the borrower one time, in advance of the date Urban Development and the Board of Governors of settlement, and not require that they be du­ to assure that the basic requirements of the Truth plicated at the time of closing. Truth in lending in Lending Act administered under Board disclosures received on the day of settlement supervision would be incorporated into RESPA are too late to serve any shopping function. The procedures. The Board and HUD have done so. Board believes that these minor changes will During the course of this coordination and the not adversely affect consumers but will reduce early stages of the Act’s implementation, the the amount of effort necessary to give con­ Board has become aware of several instances sumers adequate disclosure as to the facts con­ of needless complexity and procedural problems cerning their credit transaction, while avoiding with the Act. unnecessary duplication. Moreover, such dis­ First, as the committee knows, all consumer closures need not be made to the seller, in the credit grantors, including those in the mortgage Board’s opinion. market, have operated under Truth in Lending Finally, the Board urges the Congress to Act procedures for the past 6 years. Creditors repeal entirely the provisions of Section 409 of have developed forms that are in almost univer­ P.L. 93-495, which amended the Truth in sal operation to meet the requirements of that Lending Act to require advance disclosure of Act and to fit the needs of each lender-borrower closing costs. The committee will recall that this transaction. RESPA mandated that existing Act was passed October 28, 1974, prior to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 579 enactment of the Real Estate Settlement Proce­ The Board is currently in the process of dures Act. We feel that the provisions of the implementation of Section 409, having waited Real Estate Settlement Procedures Act sup­ until final RESPA procedures were completed planted the need for disclosure under Section in order to avoid public confusion between the 409, and therefore Section 409 is no longer two disclosure requirements. necessary. In a broader context, the Board had expressed While there are some transactions that are not concern earlier that legislation purporting to covered by the Real Estate Settlement Proce­ assist consumers may actually harm them by dures Act to which Section 409 disclosure of imposing burdens on the creation of borrowerclosing costs would be applicable—such as lender relationships. Such harm might come some home improvement transactions—there is from creation of requirements that are so com­ real doubt of the value of advance disclosure plex as to eliminate some lenders from con­ of closing costs in such situations for several sumer markets, thus reducing the competition reasons. First, closing costs are usually not a for the consumer’s business. Another harm material factor in total consumer costs in such could arise from increasing the cost of creating transactions. Second, these transactions are proper borrower-lender relationships. Because usually subject to the 3-day right of rescission lenders must in the final analysis make invest­ under the Truth in Lending Act because they ments based on net return after administrative are secured by real estate that is the primary costs, any increases in administrative costs of residence of the borrower. Consequently, if the lenders in competitive markets are ultimately consumer does not like the credit deal proposed, passed on to the consumer, either directly or he can cancel it. Finally, the time framework indirectly. Reports from others give the Board within which such transactions take place is concern that the Real Estate Settlement Proce­ usually so short that disclosure delays may be dures Act may be creating both of the problems detrimental to the consumer’s interest. that I have described. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 15, 1975 Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services had leveled off in the second quarter of 1975, as consumer spending had continued to strengthen, and that the rise in prices had moderated further. Staff projections for the second half of the year, like those of 4 weeks earlier, suggested that real economic activity would expand and that the rise in prices, on the average, would slow from the pace in the first half. In June retail sales had expanded somewhat further, according to the advance report, and sales for the second quarter as a whole were up considerably from the first quarter. Industrial production rose slightly in June, following 8 months of decline. Nevertheless, it appeared that producers and distributors in many industries were continuing their efforts to liquidate inventories; total business inventories had declined appreciably in the preceding 4 months. After increasing for 2 months, total employment was stable in June. The calculated unemployment rate declined substantially, but the drop was attributed mainly to seasonal adjustment problems asso­ ciated with the influx of younger persons into the labor market at the end of the school year. The advance in the index of average hourly earnings for private nonfarm production workers moderated further from the first to the second quarter of the year. Average wholesale prices of indus­ trial commodities rose somewhat more in June than in the preceding 3 months, mainly because of increases in prices of crude oil and refined petroleum products; over the first half of the year the rise in industrial commodity prices was sharply below the rapid pace in 1974. Wholesale prices of farm and food products declined appreciably in June. In May the rise in the consumer price index had slowed, after a pick-up in April. Staff projections for the second half of 1975 continued to suggest moderate recovery in real output and substantial gains in nominal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 581 GNP. It was still 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 con­ struction, and by a marked slowing in business inventory liquidation from the exceptionally rapid rate in the first half of thfe year. As before, it was anticipated that business fixed investment would decline somewhat further in real terms and that imports would rise at a faster pace than exports as economic activity expanded in this country. The average exchange value of the dollar against leading foreign currencies—which had changed little for about 3 months—rose appreciably in late June and early July, in large part as a result of a rise in short-term interest rates on dollar assets relative to comparable rates on assets denominated in major foreign curren­ cies. In May U.S. merchandise imports fell more sharply than exports, and the foreign trade surplus was substantial. Banks’ claims on foreigners increased considerably in May while their liabilities to foreigners declined slightly; the result was a sizable net outflow of funds compared with a small net inflow in April. Total loans and investments at U.S. commercial banks changed little during June. As in the preceding 4 months, total loans declined; outstanding loans to businesses fell sharply further—as did the outstanding volume of commercial paper issued by nonfi­ nancial businesses—in association with continued inventory liquida­ tion and heavy corporate financing in the capital market. Banks again added substantially to their holdings of U.S. Government securities. Expansion in demand deposits and in consumer-type time and savings deposits at banks and at nonbank thrift institutions—already strong in May—was extremely rapid in June, in part because of Federal income tax rebates and of supplementary social security payments; over the second quarter of the year, M1? M2, and M3 grew at annual rates of about 11, 13, and 15 per cent, respectively. Weekly data suggested that the aggregates had begun to weaken late in the month, after completion of the special disbursement by the Treasury. System open market operations since the June 16-17 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with moderate growth in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin □ September 1975 monetary aggregates over the months ahead. Data that had become available soon after the June meeting suggested that in the June-July period the aggregates would grow at rates above the upper limits of the ranges of tolerance that had been specified by the Committee. Therefore, System operations persistently had been directed toward some tightening in bank reserve and money market conditions. In the last 3 days of the statement week ending June 25 the Federal funds rate was close to 6 per cent—the upper limit of the range of tolerance specified at the June meeting—compared with a level between 5 Vi and 5Vi per cent at the time of that meeting. On June 26 a majority of the members concurred in the Chair­ man’s recommendation that the upper limit of the funds rate constraint be raised to 6V4 per cent, on the understanding that the additional leeway would be used only if another week’s data confirmed excessive strength in the aggregates. However, data that had become available for the statement week ending July 2, and then for the week ending July 9, suggested that the aggregates had begun to weaken. Accordingly, the System sought no further tightening in bank reserve and money market conditions. For a short time around midyear Federal funds traded above 6 per cent, as a result of special pressures in the market associated with the June 30 statement date for banks and with the Independence Day holiday. Short-term interest rates had risen appreciably since the June meeting of the Committee, partly in response to the firming in money market conditions. The rise in rates on Treasury bills was exceptionally large, in part because rates had declined earlier in anticipation of a seasonal decline in the supply of bills in late June. At the time of this meeting the market rate on 3-month Treasury bills was 6.03 per cent, up from a low of 4.88 per cent on June 16. Yields on longer-term Treasury and corporate securities also increased appreciably during the inter-meeting period, in response to the tightening in money market conditions and to exceptionally heavy demands in the capital market. Public offerings of both corporate bonds and State and local government issues expanded to new records in June, and a large volume of offerings was in prospect for July. Moreover, the Treasury auctioned $1.75 billion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 583 of 4-year notes on June 25 and indiciated that it would auction $1.5 billion of 2-year notes in late July. The Treasury was expected to announce the terms of its mid- August refunding of July 23. Of the maturing issues, $4.8 billion were held by the public. At its previous meeting, the Committee had agreed that growth in the monetary and credit aggregates over the 12 months to June 1976 from the estimated levels for June 1975 within the following ranges would be consistent with its broad economic objectives: Ml9 5 to IVi per cent; M2, 8V2 to \0V2 per cent; M3, 10 to 12 per cent; and the bank credit proxy, 6V2 to 9V2 per cent. In view of the erratic movements of monthly figures on money balances—as illustrated by the unexpectedly large rise in monetary aggregates in June—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. As before, it was understood that the ranges, as well as the particular list of aggre­ gates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It also was under­ stood that from month to month short-run factors might cause the rates of growth of the various aggregates to fall outside the ranges contemplated for annual periods. In considering current policy, the Committee took note of a staff analysis suggesting that growth in monetary aggregates would slow considerably in July from the extremely rapid pace in May and June associated with the Federal income tax rebates and social security payments. In the course of the Committee’s discussion, it was noted that growth in the monetary aggregates in May and June had been appreciably above expected rates, and that bank reserve and money market conditions had been permitted to firm somewhat as a consequence. It was also noted that the economy apparently was in the process of recovering from the recession and that a strengthening in the underlying demands for money and bank credit was in prospect. In the circumstances, no member advocated operations to ease bank reserve and money market conditions in the period immedi­ ately ahead unless the monetary aggregates were considerably weaker than expected, and some suggested that a modest firming might be appropriate at this time. A number of members indicated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin □ September 1975 that they would prefer to maintain about the prevailing conditions for the time being, in light of the uncertainties about the strength of the economic recovery and of the relatively high levels of market interest rates for the present stage of the cycle. However, these members were prepared to accept some firming in coming weeks if necessary to slow monetary growth substantially from the rapid pace in recent months. At the conclusion of the discussion, the Committee decided to seek bank reserve and money market conditions over the period immediately ahead about the same as those now prevailing, pro­ vided that growth in monetary aggregates appeared to be slowing substantially from the bulge during the second quarter. Specifically, the members agreed that growth in Mx and M2 over the July-August period at annual rates within ranges of tolerance of 3 to 5Vi per cent and 8 to IOV2 per cent, respectively, would be acceptable. Such growth rates were thought likely to involve growth in reserves available to support private nonbank deposits (RPD’s) within a range of —2 to +V2 per cent. The members agreed that in the period until the next meeting the weekly average Federal funds rate might be expected to vary in an orderly fashion within a range of 5V2 to 63A per cent, depending on the behavior of the monetary aggregates. The members also concluded that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of developments in domestic and international finan­ cial 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 leveled off in the second quarter of the year, as consumer spending continued to strengthen. Activity in residential real estate markets has picked up in recent months. In June industrial production rose slightly, following 8 months of decline. The calcu­ lated unemployment rate declined substantially, but this was attrib­ uted mainly to problems of seasonal adjustment. Average wholesale prices of industrial commodities rose somewhat more in June than in the preceding 3 months, chiefly because of increases in prices of petroleum products, but prices of farm and food products declined appreciably. From the first to the second quarter of the year, the advance in average wage rates continued to moderate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 585 In recent weeks the average exchange value of the dollar against leading foreign currencies has risen considerably, as interest rates on U.S. dollar assets increased relative to rates on foreign currency assets after mid-June. In May the U.S. foreign trade balance registered a substantial surplus, as imports dropped more sharply than exports. U.S. banks reported a sizable increase in claims on foreigners, while liabilities to foreigners were reduced slightly. Growth in Mu M2, and M3—which was substantial in May—was extremely rapid in June, in part because of Federal income tax rebates and of supplementary social security payments; beginning late in the month, after completion of such payments, the aggregates weakened. Business demands for short-term credit remained unu­ sually weak both at banks and in the commercial paper market, while demands in the long-term market continued exceptionally strong. Market interest rates in general have risen appreciably in recent weeks. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ ducive to stimulating economic recovery, while resisting inflationary pressures and working toward equilibrium in the country’s balance of payments. To implement this policy, while taking account of the forthcoming Treasury financing and of developments in domestic and interna­ tional financial markets, the Committee seeks to maintain about the prevailing bank reserve and money market conditions over the period immediately ahead, provided that growth in monetary aggregates appears to be slowing substantially from the bulge during the second quarter. Votes for this action: Messrs. Burns, Baughman, Bucher, Coldwell, Eastburn, Jackson, MacLaury, Mayo, Wallich, and Debs. Vote against this action: Mr. Holland. Absent and not voting: Messrs. Hayes and Mit­ chell. (Mr. Debs voted as alternate for Mr. Hayes.) Mr. Holland dissented from this action because he believed that present circumstances did not warrant providing for a possible rise in the Federal funds rate to a level as high as 6% per cent in the period until the next meeting. He preferred to maintain bank reserve and money market conditions in the inter-meeting period closer to those now prevailing, in the expectation that by the next Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin □ September 1975 meeting the unwinding of the recent bulge in monetary aggregates caused by unusual Treasury payments would have proceeded far enough to permit monetary policy decisions to be related more closely to underlying trends in the aggregates. 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 B ulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

587 Law Department Statutes, regulations, interpretations, and decisions FOREIGN ACTIVITIES INTERPRETATION OF NATIONAL BANKS OF REGULATION M The Board of Governors has amended its Regu­ Loans to executive officers of foreign lation M to increase the limit on the amount of branches of national and State member banks. credit a foreign branch of a member bank may Section 22(g) of the Federal Reserve Act (12 extend to an executive officer to finance living U.S.C. 375a) provides, with certain exceptions, quarters to be used as a residence abroad and to that “no executive officer of any member bank allow foreign branches of member banks to engage shall borrow from or otherwise become indebted in certain insurance agency and brokerage activi­ to, any member bank of which he is an executive ties. officer, and no member bank shall make any loan or extend credit in any other manner to any of AM ENDM ENT TO REGULATION M its own executive officers.***.” Pursuant to the authority conferred by the ninth paragraph of sec­ Effective August 25, 1975, section 213.3 is tion 25 of the Federal Reserve Act (12 U.S.C. amended to read as follows: 604a), which was added to that section by the Act Section 213.3—Foreign Branches of August 15, 1962 (Public Law 87-588), the Board of Governors in § 213.3(b) of this sub­ chapter (Regulation M) has, subject to certain (b) Further powers of foreign branches. In conditions, authorized foreign branches of national addition to its other powers, a foreign branch may, banks to make certain home loans to their execu­ subject to paragraph (c) of this section and § 213.6 tive officers. The question has arisen whether and so far as usual in connection with the transac­ foreign branches of State member banks would tion of the business of banking in the places where violate section 22(g) by extending credit to their it shall transact business: executive officers to the same extent and subject to the same conditions as foreign branches of national banks. A separate but related question is whether executive officers of foreign branches of (6) Extend credit to an executive officer of the national (and State member) banks may borrow branch in an amount not to exceed $100,000 or from their respective branches as envisaged by § its equivalent in order to finance the acquisition 213.3(b) of this subchapter. or construction of living quarters to be used as his residence abroad, provided each such credit extension is promptly reported to its home office; Provided, however, That, with the specific prior approval of the parent bank’s board of directors, On the basis of the foregoing considerations, such amount limitation may be exceeded when the Board of Governors is of the opinion that necessary to meet local housing costs. foreign branches of State member banks would not (7) Pay to any officer or employee of the branch violate section 22(g) by extending credit to their a greater rate of interest on deposits than that paid executive officers subject to the same restrictions to other depositors on similar deposits with the and conditions as apply to foreign branches of branch. national banks under § 213.3(b) of this sub­ (8) Act as insurance agent or broker. chapter.*** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin □ September 1975 INTERPRETATION OF REGULATION Y clearing process of the banking system, but are also important to the performance of other activi­ Activities closely related to banking * * * ties, including the processing of financially-related economic data. The authority is not intended to Courier activities. The Board’s amendment of permit holding companies to engage generally in § 225.4(a), which adds courier services to the list the provision of transportation services. of closely related activities is intended to permit During the course of the Board’s proceedings holding companies to transport time critical mate­ pertaining to courier services, objections were rials of limited intrinsic value of the types utilized made that courier activities were not a proper by banks and bank-related firms in performing incident to banking because of the possibility that their business activities. Such transportation activ­ holding companies would or had engaged in unfair ities are of particular importance in the check- competitive practices.*** BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 Applicant is a recently organized corporation OF BANK HOLDING COMPANY ACT formed for the purpose of becoming a bank hold­ ing company through the acquisition of Bank and Community Insurance Agency, Inc., the operation of a general insurance agency. Bank Haxtun, Colorado (deposits of $7.4 million)1 is the second largest of three banks operating in the relevant banking Order Approving market2, and controls 34.7 per cent of the total Formation of Bank Holding Company deposits held by commercial banks in the market. Community Insurance Agency, Inc., Haxtun, Upon acquisition of Bank, Applicant would con­ Colorado, has applied for the Board’s approval trol approximately 0.1 per cent of the total com­ under § 3(a)(1) of the Bank Holding Company Act mercial bank deposits in the State. (12 U.S.C. 1842(a)(1)) of formation of a bank Applicant’s principals, both individually and holding company through acquisition of 78 per collectively, have direct and indirect interest in cent or more of the voting shares of Haxtun seven other one-bank holding companies in Colo­ Community Bank, Haxtun, Colorado (“Bank”). rado and Nebraska. The nearest of any of the banks Applicant has also applied, pursuant to § 4(c)(8) in which a principal of Applicant has an interest of the Act (12 U.S.C. 1843(c)(8)) and § is approximately seventy miles from Bank. It 225.4(b)(2) of the Board’s Regulation Y, for per­ appears that there is no existing competition be­ mission to continue to engage in general insurance tween any of these banks and Bank, nor is it likely activities as agent or broker through the retention that such competition would develop in the future. of Community Insurance Agency (“Agency”) in Accordingly, on the basis of the record, the Board Haxtun, Colorado, a community with a population concludes that competitive considerations are con­ of less than 5,000 persons. The operation by a sistent with approval of the application to acquire bank holding company of a general insurance Bank. agency in a community with a population not The financial condition, managerial resources, exceeding 5,000 persons is an activity that the and prospects of Bank are regarded as satisfactory Board has previously determined to be closely and consistent with approval of the application. related to banking (12 CFR 225.4(a)(9)(iii)(a)). The management of Applicant is satisfactory, and Notice of the applications, affording opportunity Applicant’s financial condition and prospects, for interested persons to submit comments and which are dependent upon profitable operations of views, has been given in accordance with §§ 3 both Bank and the insurance agency, appear fa­ and 4 of the Act (40 Federal Register 7009). The vorable. Although Applicant will incur debt in time for filing comments and views has expired, connection with the proposal, the projected income and the Board has considered the applications and from Bank and the insurance agency activities all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) ’Banking data are as of December 31, 1974. and the considerations specified in § 4(c)(8) of the 2The relevant banking market is approximated by the Act. boundaries of Phillips County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 589 should provide Applicant with sufficient revenue regulations and orders issued thereunder or to to service the debt without impairing the financial prevent evasion thereof. condition of Bank. Accordingly, considerations By order of the Board of Governors, effective relating to banking factors are consistent with August 21, 1975. approval of the application. Considerations relat­ Voting for this action: Governors Bucher, Wallich, ing to convenience and needs are also regarded Coldwell, and Jackson. Present and abstaining: Vice as being consistent with approval of the application Chairman Mitchell. Absent and not voting: Chairman to acquire Bank. It is the Board’s judgment that Burns and Governor Holland. consummation of the proposal to form a bank (Signed) Theodore E. A llison, holding company would be consistent with the [seal] Secretary of the Board. public interest and the application should be ap­ proved. In connection with the application to become First Security Corporation, a bank holding company, Applicant also proposes Sutherland, Nebraska to retain the assets of Agency, which was formerly Order Approving operated as a sole proprietorship on the premises Formation of Bank Holding Company of Bank, and thereby engage in the activities of a general insurance agency pursuant to § First Security Corporation, Sutherland, Ne­ 225.4(a)(9)(iii)(a) of Regulation Y. Approval of braska, has applied for the Board’s approval under this application would ensure the residents of § 3(a)(1) of the Bank Holding Company Act (12 Haxtun a convenient source of insurance services, U.S.C. § 1842(a)(1)) of formation of a bank a result the Board regards as being in the public holding company through acquisition of 89 per interest. Furthermore, there is no evidence in the cent or more of the voting shares of First Security record indicating that consummation of the pro­ Bank, Sutherland, Nebraska (“Bank”). posal would result in any undue concentration of Notice of the application, affording opportunity resources, unfair competition, conflicts of interest, for interested persons to submit comments and unsound banking practices, or other adverse ef­ views, has been given in accordance with § 3(b) fects on the public interest. of the Act. The time for filing comments and views Based on the foregoing and other considerations has expired, and the Board has considered the reflected in the record, the Board has determined, application and all comments received in light of in accordance with the provisions of § 4(c)(8), that the factors set forth in § 3(c) of the Act (12 U.S.C. consummation of this proposal can reasonably be § 1842(c)).1 expected to produce benefits to the public that On April 21, 1975, the Federal Reserve Bank outweigh possible adverse effects, and the appli­ of Kansas City, acting pursuant to the Board’s cation to acquire Agency should be approved. Rules Regarding Delegation of Authority, 12 CFR Accordingly, the applications are approved for 265.2(f), approved the instant application. By the reasons summarized above. The acquisition of telegram received on April 25, 1975, First Security Bank shall not be made before the thirtieth calen­ Corporation, Salt Lake City, Utah, claiming to be dar day following the effective date of this Order. adversely affected by the approval, petitioned the The acquisition of Bank and Agency shall be made Board for review of the action taken by the Federal not later than three months after the effective date Reserve Bank of Kansas City. Acting pursuant to of this Order, unless such period is extended for 12 CFR 265.3, Governor Bucher subsequently good cause by the Board, or by the Federal Re­ requested this review by the Board. serve Bank of Kansas City pursuant to delegated authority. The determination as to Applicant’s ’First Security Corporation, Salt Lake City, Utah (“Protes­ insurance activities is subject to the conditions set tant”), has objected to this application alleging that unfair forth in § 225.4(c) of Regulation Y and to the competition would result from public confusion of the two corporations deriving from the fact that the names of the two Board’s authority to require reports by, and make corporations are identical. The Board has determined that examinations of, holding companies and their resolution of such allegations rests with the courts and is not subsidiaries and to require such modification or properly within the jurisdiction of the Board under § 3(c) of the Act. In any event, the Board, on the record before it, termination of the activities of a bank holding finds that use of the name “First Security Corporation” by company or any of its subsidiaries as the Board Applicant is not an unfair method of competition against Protestant as the two firms are not in competition with one finds necessary, to assure compliance with the another, neither firm operating in the same geographic market provisions and purposes of the Act and the Board’s as the other. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin □ September 1975 Applicant, a non-operating corporation with no the Federal Reserve Bank of Kansas City pursuant subsidiaries, was organized for the purpose of to delegated authority. becoming a bank holding company through the By order of the Board of Governors, effective acquisition of Bank. Bank (deposits of $3.6 mil­ August 6, 1975. lion)2 is the only bank in Sutherland, an agricul­ Voting for this action: Vice Chairman Mitchell and turally oriented community with a population of Governors Bucher, Wallich, and Coldwell. Absent and approximately 840 persons. Bank is the fourth not voting: Chairman Burns and Governors Holland and largest of eight banks in the relevant banking Jackson. market3 and 325th largest bank in the State of (Signed) G riffith L. G arwood, Nebraska. Upon acquisition of Bank, Applicant [seal] Assistant Secretary of the Board. would control approximately 4 per cent of the total deposits in commercial banks in the relevant mar­ ket and considerably less than one per cent of such First Security Corporation of Kentucky, deposits in the State. The proposal represents Lexington, Kentucky merely a reorganization of the existing ownership Order Approving of Bank and it appears that consummation of the Formation of Bank Holding Company proposal would not adversely affect existing or potential competition nor would it increase the First Security Corporation of Kentucky, Lex­ concentration of banking resources in any relevant ington, Kentucky, has applied for the Board’s area. Principals of Applicant are principals of four approval under § 3(a)(1) of the Bank Holding other Nebraska banks, none of which compete in Company Act (12 U.S.C. § 1842(a)(1)) of forma­ the relevant banking market. Accordingly, the tion of a bank holding company through acquisi­ Board regards competitive considerations as being tion of 100 per cent (less directors’ qualifying consistent with approval of the application. shares) of the voting shares of the successor by The financial and managerial resources and fu­ merger to First Security National Bank and Trust ture prospects of Applicant, which are dependent Company of Lexington, Lexington, Kentucky on those of Bank, are considered generally satis­ (“Bank”). The bank with which Bank is to be factory and consistent with approval of the appli­ merged has no significance except as a means to cation. The debt to be assumed by Applicant as facilitate the acquisition of Bank. a result of the proposal appears to be serviceable Notice of the application, affording opportunity from the income to be derived from Bank without for interested persons to submit comments and having an adverse effect on the financial condition views, has been given in accordance with § 3(b) of either Applicant or Bank. Accordingly, banking of the Act. The time for filing comments and views factors are regarded as being consistent with ap­ has expired, and the Board has considered the proval. Although consummation of the transaction application and all comments received in light of would have no immediate effect on the area’s the factors set forth in § 3(c) of the Act (12 U.S.C. banking needs, considerations relating to the con­ § 1842(c)).1 venience and needs of the community to be served Applicant, a non-operating corporation with no are consistent with approval of the application. It subsidiaries, was organized for the purpose of is the Board’s judgment that consummation of the becoming a bank holding company through the proposed transaction would be in the public inter­ acquisition of Bank. Bank (deposits of $318.8 est and that the application to acquire Bank should be approved. On the basis of the record, the application is approved for the reasons set forth above. The transaction shall not be made (a) before the thir­ 1 First Security Corporation, Salt Lake City, Utah (“Protes­ tant”), has objected to this application alleging that unfair tieth calendar day following the effective date of competition would result from public confusion of the two this Order or (b) later than three months after the corporations deriving from the fact that the names of the two corporations are similar. The Board has determined that reso­ effective date of this Order, unless such period lution of such allegations rests with the courts and is not is extended for good cause by the Board or by properly within the jurisdiction of the Board under § 3(c) of the Act. In any event, the Board, on the record before it, finds that use of the name “First Security Corporation” by Applicant is not an unfair method of competition against 2All banking data are as of October 15, 1974. Protestant as the two firms are not in competition with one 3The relevant banking market is approximated by Lincoln another, neither firm operating in the same geographic market County. as the other. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 591 million)2 is the largest of 22 banks in the relevant First City Bancorporation of Texas, Inc., banking market,3 and the fourth largest bank in Houston, Texas the State of Kentucky. Upon acquisition of Bank, Order Approving Acquisition of Bank Applicant would control approximately 32 per cent of the total deposits in commercial banks in the First City Bancorporation of Texas, Inc., Hous­ relevant market and approximately 3.5 per cent ton, Texas, a bank holding company within the of such deposits in the State. The proposal repre­ meaning of the Bank Holding Company Act, has sents merely a/ reorganization of the existing own­ applied for the Board’s approval under § 3(a)(3) ership of Bank and it appears that consummation of the Act (12 U.S.C. 1842(a)(3)) to acquire an of the proposal would not adversely affect existing additional 34.2 per cent or more of the voting or potential competition nor would it increase the shares of Central Bank and Trust Company, concentration of banking resources in any relevant Farmers Branch, Texas (“Bank”).1 area. Accordingly, the Board regards competitive Notice of the application, affording opportunity considerations as being consistent with approval for interested persons to submit comments and of the application. views, has been given in accordance with § 3(b) The financial and managerial resources and fu­ of the Act. The time for filing comments and views ture prospects of Applicant, which are dependent has expired, and none has been timely received. on those of Bank, are considered generally satis­ The Board has considered the application in light factory and consistent with approval. Accordingly, of the factors set forth in § 3(c) of the Act (12 banking factors are regarded as consistent with U.S.C. 1842(c)). approval. Although consummation of the transac­ Applicant controls 23 banks with aggregate de­ tion would have no immediate effect on the area’s posits of approximately $3.1 billion, representing banking needs, considerations relating to the con­ about 7.3 per cent of the aggregate deposits in venience and needs of the community to be served commercial banks in Texas, and is the second are consistent with approval of the application. It largest banking organization in Texas.2 Applicant is the Board’s judgment that consummation of the also has interests of between 5 and less than 25 proposed transaction would be in the public inter­ per cent in each of six other banks (about $183 est and that the application to acquire Bank should million in deposits as of June 30, 1974)3. Acqui­ be approved. sition of control of Bank ($28.6 million in depos­ On the basis of the record, the application is its) would increase Applicant’s share of commer­ approved for the reasons summarized above. The cial bank deposits in Texas by less than . 1 of one transaction shall not be made (a) before the thir­ per cent and would not result in a significant tieth calendar day following the effective date of increase in the concentration of banking resources this Order or (b) later than three months after the in Texas. Applicant’s ranking among the State’s effective date of this Order, unless such period banking organizations would remain unchanged. is extended for good cause by the Board, or by Bank ranks as the 37th of 110 banks located the Federal Reserve Bank of Cleveland pursuant in the Dallas banking market, which is approxi­ to delegated authority. By order of the Board of Governors, effective August 6, 1975. *By action of June 29, 1973, the Board of Governors approved the acquisition by Applicant of Texas Bank & Trust Voting for this action: Vice Chairman Mitchell and Company of Dallas, Dallas, Texas (“Texas Bank & Trust”). Governors Bucher, Wallich, and Coldwell. Absent and At the same time, Applicant received approval to acquire 18.1 not voting: Chairman Burns and Governors Holland and per cent of the voting shares of Bank which were held by Jackson. Texas Fiduciary, a trusteed affiliate of Texas Bank & Trust. 2All banking data, unless otherwise indicated, are as of December 31, 1974, and reflect bank holding company forma­ (Signed) G riffith L. Garwood, tions and acquisitions approved through June 30, 1975. [seal] Assistant Secretary of the Board. 3The Board’s action herein does not constitute a determi­ nation that any of the minority banks is or may become a subsidiary of Applicant nor does the action herein indicate that the Board will in the future permit Applicant to acquire, directly or indirectly, any additional shares of any of said 2 All banking data are as of December 31, 1974. banks. Moreover, the determination herein does not preclude the Board from determining that Applicant exercises a control­ 3The relevant banking market is approximated by the Lex­ ling influence over the management or policies of any of said ington Standard Metropolitan Statistical Area. banks within the meaning of § 2(a) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin □ September 1975 mated by the Dallas RMA,4 and controls .4 per acquire 100 per cent of certain of such banks cent of the total deposits in commercial banks in within a definite one or two-year time period. that market.5 Applicant has three banking subsidi­ Applicant has complied with some of these under­ aries competing in the relevant banking market, standings and, in acting on future applications by controlling only 4.3 per cent of market deposits. this Applicant, the Board will consider Applicant’s Applicant ranks as the fifth largest banking orga­ method and timing in complying with such under­ nization in the market and is much smaller than standings when the Board assesses managerial the two largest banking organizations in the mar­ considerations. Nevertheless, with respect to this ket, which hold about 25 per cent and 17 per cent proposed acquisition, it is the Board’s judgment of market deposits, respectively. Consummation that it would be in the public interest and that the of the proposal would not significantly alter the application should be approved. banking structure in the Dallas market, and Appli­ On the basis of the record, the application is cant would continue to rank after consummation approved for the reasons summarized above. The as the fifth largest banking organization in the transaction shall not be made (a) before the thir­ market. Applicant’s closest existing subsidiary tieth calendar day following the effective date of bank is located 13.5 miles from Bank. It appears this Order or (b) later than three months after the that the amount of existing competition that would effective date of this Order, unless such period be eliminated by consummation of the proposal is extended for good cause by the Board, or by is not significant. While Applicant may possess the Federal Reserve Bank of Dallas pursuant to the resources to expand its operations in the rele­ delegated authority. vant market through de novo entry, Bank is not By order of the Board of Governors, effective viewed as a significant competitive factor in the August 20, 1975. market and barriers to entry by other bank holding Voting for this action: Vice Chairman Mitchell and companies into the expanding Dallas market will Governors Bucher, Wallich, Coldwell, and Jackson. not be raised as numerous alternative points of Absent and not voting: Chairman Burns and Governor entry into the relevant banking market would re­ Holland. main available. Accordingly, on the basis of the (Signed) Theodore E. A llison, record, the Board concludes that consummation [seal] Secretary of the Board. of the proposed acquisition would not have signi­ ficant adverse effects on competition in any rele­ Michigan National Corporation, vant area. Bloomfield Hills, Michigan Considerations relating to the convenience and needs of the communities to be served are regarded Order Approving Acquisition of Bank as being consistent with approval, in light of the Michigan National Corporation, Bloomfield fact that affiliation with Applicant would enable Hills, Michigan, a bank holding company within Bank to expand its lending services. The financial the meaning of the Bank Holding Company Act, and managerial resources and future prospects of has applied for the Board’s approval under § Bank should be strengthened through affiliation 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ with Applicant and such considerations lend quire 100 per cent of the voting shares (less weight toward approval of the proposal. The fi­ directors’ qualifying shares) of Michigan National nancial and managerial resources and future pros­ Bank—Grand Traverse, Traverse City, Michigan pects of Applicant and its subsidiary banks are (“Bank”), a proposed new bank. generally satisfactory and consistent with approval Notice of the application, affording opportunity of the application. In this connection, however, for interested persons to submit comments and the Board notes that Applicant has previously views, has been given in accordance with § 3(b) indicated, with respect to minority interests in of the Act. The time for filing comments and views several banks, that it would either divest of certain has expired, and the Board has considered the of such interests or apply for Board approval to application and all comments received, including those submitted on behalf of Traverse City State Bank, National Bank and Trust Company, and 4Dallas RMA is the Dallas Ranally Metro Area, which is defined as including all of Dallas County, the southwest portion Empire National Bank, all located in Traverse of Collin County, the southeast portion of Denton County, City, Michigan (hereinafter collectively referred to the northern quarter of Ellis County, the eastern quarter of as “Protestants”), in light of the factors set forth Tarrant County, and the northwest quarter of Kaufman County. 5A11 market data are as of June 30, 1974. in § 3(c) of the Act (12 U.S.C. 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 593 Applicant, the second largest banking organi­ City is not particularly attractive for de novo entry. zation and bank holding company in Michigan, The Board has reviewed the facts of record, in­ controls 14 banks with aggregate deposits of ap­ cluding the past and projected growth of the econ­ proximately $2.7 billion, representing about 9.5 omy of the area, and finds that the economy of per cent of the total commercial bank deposits in the Traverse City market can reasonably be ex­ the State.1 Since Bank is a proposed new bank, pected to support Applicant’s entry. While the its acquisition by Applicant would neither elimi­ decision to establish a new bank almost always nate any existing competition nor immediately involves some measure of risk, the Board is unable increase Applicant’s share of commercial bank to conclude that Applicant’s proposal involves deposits in the State. more than the usual entrepreneurial risks inherent Bank is to be located within two blocks of in such a proposal. Traverse City’s central business district and repre­ Protestants also contend \hat Bank will not be sents the initial entry by Applicant into the north­ profitable for a period longer than that estimated ern portion of Michigan, as well as into the Grand by Applicant and that the losses that will be Traverse Bay banking market (the relevant bank­ experienced will further impair Applicant’s ability ing market).2 There are eleven banks with thirty- to financially strengthen its subsidiaries and to fund two banking offices in the Grand Traverse Bay its current expansion program. Even assuming that banking market and the four largest banking orga­ there is some merit to Protestants’ contention that nizations control about 80 per cent of market Bank will not be profitable within the period an­ deposits.3 Applicant’s closest banking offices are ticipated by Applicant, it appears that, in view of located 140 miles south of Bank in Grand Rapids, the projected size of Bank in relation to Applicant, and 150 miles southeast in Saginaw, and there are any losses as may be incurred would probably be numerous banks in the intervening areas. Appli­ insignificant and would have little impact on the cant’s acquisition of Bank should have a procom- overall financial condition of Applicant. petitive effect as it would mark the initial entry Protestants finally contend that acquisition of into Traverse City by a banking institution not Bank will have an adverse effect on the existing associated with an existing Traverse City bank. correspondent relationship between Empire Na­ Bank would face competition primarily from the tional Bank and Michigan National Bank. Empire three banks located in Traverse City, the Protes­ is concerned with the competitive advantage an tants to this application, which control deposits affiliate of Applicant would have with respect to of approximately $94 million, $54 million, and offering various services in Traverse City. Ini­ $48 million, respectively. In view of the size of tially, the Board does not believe as a general each of the banks in Traverse City, as well as matter that the mere fact that a bank in a holding the fact that Applicant is entering the area through company system has a correspondent relationship the establishment of a new bank, it does not appear with another bank in a particular market should the subject proposal will have any undue adverse automatically bar the holding company from en­ effects on any of the competing banks in the tering that market through the establishment of a market. On the other hand, the subject proposal new bank. In response to the specific comment should have a salutary effect on competition by of Protestants, Applicant contends that there are introducing a new and effective competitor to the a number of communities in which are located both market. Accordingly, on the basis of the record, subsidiary banks of Applicant and banks having the Board concludes that competitive consid­ correspondent relationships with subsidiary banks erations are consistent with, and lend some weight of Applicant. Applicant further contends that es­ toward, approval of the application. tablishment of Bank “would benefit the banking In the course of its consideration of this appli­ public through the offering of a wide range of cation, the Board has received comments from services and extended banking hours.” The Board Protestants which contend, in part, that Traverse is satisfied from its examination of the facts as presented that acquisition of Bank by Applicant would not have serious adverse competitive con­ *AI1 banking data, unless otherwise indicated, are as of sequences. Moreover, Protestants’ banks have ex­ December 31, 1974, and reflect bank holding company forma­ perienced reasonably good growth. Each appears tions and acquisitions approved through July 31, 1975. 2The Grand Traverse Bay market is approximated by the to have the ability to respond to any increase in Counties of Grand Traverse, Leelanan, Antrim, Kalkaska and competition which might result from consumma­ Benzie. tion of this proposal. Accordingly, it is the Board’s 3 All market data are as of June 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin □ September 1975 judgment, upon consideration of all the facts in National City Corporation, the record, that the arguments raised by Protestants Cleveland, Ohio are not sufficient to warrant denial of the subject Order Approving Acquisition of Bank proposal. The financial condition, management and pros­ National City Corporation, Cleveland, Ohio, a pects of Applicant and its subsidiary banks are bank holding company within the meaning of the regarded as generally satisfactory. Whereas the Bank Holding Company Act, has applied for the Board has previously indicated concern with the Board’s approval under § 3(a)(3) of the Act (12 capital adequacy of certain of Applicant’s subsidi­ U.S.C. § 1842(a)(3)) to acquire 100 per cent of ary banks, the Board notes that Applicant has the voting shares (less directors’ qualifying shares) adopted a program to strengthen the overall capital of National City Bank of Lake County, Mentor, positions of the holding company and its subsidi­ Ohio (“Bank”), a proposed new bank. ary banks, and that meaningful progress has been Notice of the application, affording opportunity made along those lines. The Board believes that for interested persons to submit comments and continued attention is needed in this area. How­ views, has been given in accordance with § 3(b) ever, in view of the minimal impact that the of the Act. The time for filing comments and views subject proposal would have upon Applicant’s has expired and the Board has considered the resources, it is the Board’s view that banking application and all comments received in light of factors are consistent with approval of the appli­ the factors set forth in § 3(c) of the Act (12 U.S.C. cation. § 1842(c)). Considerations relating to the convenience and Applicant, the fourth largest banking organi­ needs of the communities to be served, in the zation in Ohio, controls 2 banks with aggregate Board’s judgment, lend some weight toward ap­ deposits of approximately $1.8 billion, repre­ proval, in view of Applicant’s plans to offer ex­ senting 6 per cent of the total deposits in commer­ tended banking hours and a wide range of banking cial banks in the State.1 Since the application services in an alternative location. Thus, consid­ involves the acquisition of a proposed new bank, erations relating to the convenience and needs of consummation of the proposal would not immedi­ the areas to be served lend some weight toward ately increase Applicant’s share of commercial approval of the application. It is the Board’s judg­ bank deposits in the State. ment that consummation of the proposed acquisi­ Bank is to be located in the city of Mentor, tion would be in the public interest and that the 27 miles east of Cleveland, which area is included application should be approved. in the Cleveland banking market.2 Since the pro­ On the basis of the record, the application is posal involves the establishment of a new bank, approved for the reasons summarized above. The consummation of the subject acquisition would transaction shall not be consummated (a) before neither eliminate existing competition nor result the thirtieth calendar date following the effective in an immediate increase in the concentration of date of this Order or (b) later than three months banking resources. Applicant’s lead bank, the after the effective date of this Order, and (c) second largest banking organization in the Cleve­ Michigan National Bank—Grand Traverse, Tra­ land market, controls 16 per cent of total market verse City, Michigan, shall be opened for business deposits. Applicant competes in the market with not later than six months after the effective date 37 banking organizations, the largest of which of this Order. Each of the periods described in holds deposits of approximately $2.5 billion. Ap­ (b) and (c) may be extended for good cause by plicant’s closest subsidiary banking office is lo­ the Board, or by the Federal Reserve Bank of cated 11.4 miles west of Bank’s proposed site. Chicago pursuant to delegated authority. The projected location of Bank is in the Lake By order of the Board of Governors, effective County area of the market which is expected to August 29, 1975. Voting for this action: Chairman Burns and Gover­ nors Mitchell, Bucher, Holland, Wallich, and Jackson. 'All deposit data are as of December 31, 1974, and market Absent and not voting: Governor Coldwell. data are as of June 30, 1973. 2The Cleveland banking market includes all of Lake, Cuya­ (Signed) Theodore E. A llison, hoga, and Geauga Counties, as well as portions of Portage, [seal] Secretary of the Board. Summit, Medina and Lorain Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 595 continue to experience rapid growth, and it appears Ameribanc, Inc., that Applicant’s proposed de novo expansion St. Joseph, Missouri would not deter de novo entries by other organi­ Order Granting zations into the area. Accordingly, on the basis Request for Reconsideration of the facts of record, the Board concludes that consummation of the proposal would not have any Ameribanc, Inc., St. Joseph, Missouri, has re­ adverse effect on existing or potential competition quested reconsideration of the Order of December in any relevant area. 31, 1974 (40 Federal Register 1568), whereby the The financial and managerial resources and Board of Governors denied the application of prospects of Applicant and its subsidiary banks are Ameribanc, Inc., for prior approval to merge with regarded as generally satisfactory. Bank, as a First American Bancshares, Inc., St. Joseph, Mis­ proposed new bank, has no financial or operating souri, pursuant to section 3(a)(5) of the Bank history; however, its prospects as a subsidiary of Holding Company Act of'1956, as amended (12 Applicant appear favorable. Considerations relat­ U.S.C. 1842(a)(5)). ing to the banking factors are thus consistent with The request for reconsideration is filed pursuant approval of the application. Considerations relat­ to section 262.3(g)(5) of the Board’s Rules of ing to the convenience and needs of the community Procedure, which provides that the Board will not to be served lend some weight toward approval grant any request for reconsideration “unless the of the application. The addition of a new bank request presents relevant facts that, for good cause in this rapidly growing area of Lake County would shown, were not previously presented to the provide a convenient alternative source of banking Board, or unless it otherwise appears to the Board to the area residents. It is the Board’s judgment that reconsideration would be appropriate.” The that consummation of the proposal would be in Board finds that the request for reconsideration the public interest and that the application should presents relevant new facts that were not pre­ be approved. viously presented to the Board and, therefore, that On the basis of the record, the application is it would be appropriate for the Board to reconsider approved for the reasons summarized above. The the application. Accordingly, the request for re­ transaction shall not be made (a) before the thir­ consideration is hereby granted. tieth calendar day following the effective date of In order to facilitate such consideration, com­ this Order or (b) later than three months after the ments and views regarding the proposal may be effective date of this Order, and (c) National City filed with the Board not later than September 23, Bank of Lake County, Mentor, Ohio, shall be 1975. Communications should be addressed to the opened for business not later than six months after Secretary, Board of Governors of the Federal the effective date of this Order. Each of the periods Reserve System, Washington, D.C. 20551. The described in (b) and (c) may be extended for good application, as supplemented by Applicant’s re­ cause by the Board, or by the Federal Reserve quest for reconsideration, may be inspected at the Bank of Cleveland pursuant to delegated authority. offices of the Board of Governors or at the Federal By order of the Board of Governors, effective Reserve Bank of Kansas City. August 1, 1975. By order of the Board of Governors, effective August 25, 1975. Voting for this action: Chairman Burns and Gover­ nors Bucher, Wallich, and Coldwell. Absent and not voting: Governors Mitchell, Holland, and Jackson. Voting for this action: Vice Chairman Mitchell and Governors Bucher, Coldwell, and Jackson. Voting against this action: Governor Wallich. Absent and not voting: Chairman Burns and Governor Holland. (Signed) Theodore E. A llison, (Signed) Theodore E. A llison, [seal] Secretary of the Board. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin □ September 1975 ORDERS NOT PRINTED IN THIS ISSUE ORDERS APPROVED BY THE BOARD OF GOVERNORS During August 1975, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Alfalfa County Bancshares, The Alfalfa County 8/11/75 40 F.R. 36426 Inc., Cherokee, Oklahoma National Bank of 8/20/75 Cherokee, Cherokee, Oklahoma Boulevard Bancshares, Inc., The Boulevard State 8/7/75 40 F.R. 34482 Prairie Village, Kansas Bank, Wichita, Kansas 8/15/75 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 National Detroit Corporation, Bank of Commerce of 8/1/75 40 F.R. 33195 Detroit, Michigan Lansing, Lansing, 8/8/75 Michigan Popular Bancshares Corporation, Trans Florida Bancshares, 8/20/75 40 F.R. 38189 Miami, Florida Inc., Sarasota, Florida 8/27/75 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 Hanston Insurance Agency, Hanston Insurance Agency, S/22/15 40 F.R. 39942 Inc., Hanston, Kansas Hanston, Kansas 8/29/75 National Detroit Corporation, Atlantic Mortgage Company, 8/1/75 40 F.R. 33494 Detroit, Michigan Inc., Alexandria Virginia 8/8/75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 597 ORDER UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT- APPLICATION TO FORM BANK HOLDING COMPANY AND ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Effective Register Applicant Bank(s) (or activity) date citation Osborne Investments, The Farmers General 8/1/75 40 F.R. 33866 Inc., Osborne, Kansas National Bank insurance 8/12/75 of Osborne agency Osborne, activities Kansas ORDERS APPROVED BY THE SECRETARY OF THE BOARD During August 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)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation D. H. Baldwin Company, First National Bank 8/25/75 40 F.R. 40213 Cincinnati, Ohio in Craig, Craig, 9/2/75 Colorado First Union, Incorpo­ First National Bank 8/12/75 40 F.R. 36127 rated, St. Louis, Missouri of St. Peters, St. 8/20/75 Peters, Missouri Texas Commerce Banc­ Commerce National 8/15/75 40 F.R. 37271 shares, Inc., Houston, Bank of Conroe, 8/26/75 Texas Conroe, Texas Worcester Bancorp, Inc., Franklin County Trust 8/20/75 40 F.R. 38190 Worcester, Massachusetts Company, Greenfield, 8/27/75 Massachusetts; and First National Bank of Cape Cod, Orleans, Massachusetts ORDERS APPROVED BY FEDERAL RESERVE BANKS During August 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

598 Federal Reserve Bulletin □ September 1975 ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Federal Reserve Effective Register Applicant Bank(s) Bank date citation First Manistique Corpo­ First National Minneapolis 8/12/75 40 F.R. 36624 ration, Manistique, Bank at 8/21/75 Michigan Manistique, Manistique; and Manistique Lakes Bank, Curtis, Michigan First-Wichita Banc­ First-Wichita Dallas 8/8/75 40 F.R. 34611 shares, Inc., Wichita National Bank 8/18/75 Falls, Texas of Wichita Falls, Wichita Falls; and Southwest National Bank of Wichita Falls, Wichita Falls, Texas 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 Southern Bancorporation First Bank of Atlanta 8/15/75 40 F.R. 37271 of Alabama, Birmingham, Russel County, 8/26/75 Alabama Phenix City; and First State Bank, Smiths, Alabama Chemical Financial Cor­ The Bank of Chicago 8/5/75 40 F.R. 34482 poration, Midland, Mich­ Albion, 8/15/75 igan Albion, Michigan Ameribanc, Inc., St. Farmers State Kansas City 8/1/75 40 F.R. 33865 Joseph, Missouri Bank, 8/12/75 Princeton, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 599 ORDER UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPPLICATION TO ENGAGE IN NONBANKING ACTIVITIES Board Nonbanking action Federal company Reserve (effective Register Applicant (or activity) Bank date) citation First Community Bancor- The Armstrong Kansas City 8/15/75 40 F.R. 37270 ation, Joplin, Missouri Insurance Agency, 8/26/75 Inc., Pineville, Missouri ORDER UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT— APPLICATION TO FORM BANK HOLDING COMPANY AND ENGAGE IN NONBANKING ACTIVITIES Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Commercial State Commercial State General Minneapolis 8/22/75 40 F.R. 40590 Agency, Inc., Bank of Hokah, insurance 9/3/75 Hokah, Minnesota Hokah, Minnesota agency activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Announcements FAIR CREDIT Open-end accounts—Chiefly, credit extended BILLING REGULATIONS by the use of a credit card. Billing error—Amounts charged due to unau­ The Board of Governors on September 15, 1975, thorized use of the customer’s credit card; amounts issued regulations to implement the Fair Credit questioned by the customer; amounts charged for Billing Act, effective October 28, the date the new property or services not accepted by the customer, Act goes into effect. or wrongly delivered; failure to credit payments The Act is a new part of the Truth in Lending already made; accounting errors, including errors Act and the regulations amend Regulation Z, in computing finance charges; imposition of fi­ which implements the truth in lending law. The nance or other charges for late payment when a new Act directs the Federal Reserve to issue the customer is not billed at his current address, if regulatory rules for fair credit billing. These are notification of change of address was given at least to be enforced by the same Federal agencies that 10 days before the end of the billing period. enforce the Truth in Lending Act. Proper written notification of error—Written The chief purpose of the Fair Credit Billing Act notice to the creditor, at an address he specifies and of the new Federal Reserve regulation is to within 60 days of the billing, that enables the help consumers resolve credit billing disputes creditor to identify the customer, indicates the promptly and fairly. The Act prohibits certain customer’s belief that the billing contains an error practices deemed unfair to consumers using credit and the amount involved, and gives reasons for cards or other open-end credit accounts and certain believing it is an error. practices between credit card issuers and retail 2. Billing error resolution. A billing error is merchants deemed to be anticompetitive. any of six specified categories of acts or omissions The published rules implementing the Fair by the creditor. To trigger the resolution procedure Credit Billing Act (FCBA) follow extensive con­ the customer must send a proper written notifica­ sultation with consumer groups, creditors, and the tion of a billing error. public at large. The Board published proposed Upon receipt of proper written notification, the FCBA regulations on April 30 and received com­ creditor must acknowledge the inquiry within 30* ment on its proposals through June 20. On June days and resolve the dispute in two billing cycles, 17 the Board published for comment proposed or no more than 90 days. During the resolution rules under a related but separate section of Public process, the customer need not pay any amount Law 93^95, which provides for minimum dis­ in dispute, or any minimum payments on amounts closure requirements for transactions reflected on in dispute. The creditor may not collect any periodic billing statements received by a customer disputed amount or any finance charges on it. The using any type of open-end credit account. On July customer’s account may not be closed because he 30 the Board published revisions of its draft rules fails to pay an amount he believes to be incorrect. and on August 5 held hearings on the proposals. The creditor may not report adversely on the Comment was received through August 18. customer’s credit standing with regard to amounts The fair credit billing amendments to Regulation in dispute nor threaten to make such a report until Z as adopted by the Board include the following the creditor has complied with his responsibilities provisions (with principal changes from the most under the error resolution procedure. Failure to recent proposals noted): comply subjects the creditor to a forfeiture of the 1. Definitions disputed amount, up to $50, regardless of whether Creditor—Credit-card issuers, whether or not a an error has been made. finance charge is imposed. Also, for some pur­ 3. Rights of the cardholder to assert claims. poses—set forth in the regulation—persons who The credit-card holder may withhold payment and honor credit cards. assert legal claims against the card issuer with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 601 respect to shoddy or defective merchandise or in a finance charge. The creditor may notify ac­ services purchased with a credit card (with certain count holders that at other locations crediting may exceptions and limitations) following an unsuc­ be delayed by up to 5 days. Adjustment for any cessful attempt to resolve the problem with the finance charges caused by not crediting an account merchant. on the date of receipt must take place in the next 4. Discounts for payments in cash. Merchants billing. may offer their customers a discount of up to 5 8. Transition periods. Transition periods—not per cent for using cash in lieu of using a credit previously specified in the Board’s proposals— card. This does not constitute a finance charge. have been provided in the regulation aimed at Credit-card issuers must notify merchants using avoiding errors and confusion in billings due to their card, by November 28, 1975, that any pre­ difficulties in changing over from forms now in vious agreement between them barring discounts use and in making technical changes, such as for cash is no longer valid. Simultaneously with computer programming and computations required publication of its FCBA rules the Board is sending to implement the FCBA. Transition provisions a letter to the Chairmen and ranking minority cover new disclosure requirements specified in the members of the House and Senate banking com­ regulation, including showing dates of payments, mittees and their subcommittees on consumer af­ indication of credit balances, and specification of fairs; the letter asks for clarification as to whether the address to which error complaints are to be the provisions of the Act regarding discounts for sent. the use of cash apply also to so-called surcharges 9. Phase-in of identification of transaction when credit cards are used. In its proposals of July requirements. Further new transition periods have 30, the Board suggested the possibility of treating been provided in order to avoid confusion and surcharges of up to 5 per cent when credit cards error during the large-scale reprogramming of were used in the same manner as discounts are computers that must take place to implement pro­ treated. visions of the Act for identifying transactions on 5. Notification of rights. New customers must bills sent to credit-card customers. Until July 1, be notified of their rights under the FCBA by use 1976, creditors may continue to identify transac­ of a notice set forth in the regulation. In general, tions as they do currently. In no case may compli­ the notice must be mailed to active accounts in ance with all such requirements be completed later the first full billing cycle after October 28, 1975. than October 28, 1977. At the customer’s request, or when a billing error The main elements of full compliance are as is alleged, the customer must be supplied with the follows. full notice of rights. Creditors who bill “descriptively” (that is, who With the following exception, the notification send only a statement of account, without copies form must also be sent to all customers semian­ of the sales voucher made at the time of the nually. The regulation provides that a short form transaction) must provide a transaction date. In of notification of rights (set forth in the regulation) addition, for two-party creditors (for instance, a may be mailed out monthly in lieu of the longer transaction with a department store where the semiannual form. department store’s credit card is used), there must 6. Notification of balance and avoidance of be a description of the goods or services pur­ finance charges. Customers with either a credit chased. For three-party transactions (where a third or a debit balance must receive a periodic state­ party’s credit card is used), the name of the mer­ ment of their account. Where there is a provision chant and the address where the transaction took for a period during which payment may be made place must be given. without incurring a finance charge, the statement 10. Time for payments after resolution of a must be mailed or delivered to the customer, with billing error. A period free from finance charges some exceptions, at least 14 days before the end must be provided for payment after resolution of of such a “free ride” period. a billing error dispute—if the creditor normally 7. Prompt crediting of payments. The credi­ gives a “free ride” period for payment without tor must specify at least one location where finance charges—when the creditor was in error. payments will be credited as of the date of receipt. Earlier drafts of the regulation would have required However, during a 1-year transition period until such a period free of finance charges after resolu­ October 28, 1976, crediting may be delayed by tion of a billing dispute even when the creditor as much as 5 days. Crediting need not take place did not make an error or did not normally offer as of the date of receipt if this does not result a period for payment free of finance charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin □ September 1975 11. Inconsistent State laws. The regulation as but the card issuer may not declare the whole debt adopted provides that any State credit billing law due. Earlier drafts of the regulation would have that differs from the error resolution procedure and required adjustment of finance charges during the credit reporting prohibitions of the FCBA and dispute period, whether or not the dispute is ulti­ its implementing regulation is inconsistent and, mately resolved in the customer’s favor. thereby, preempted. As an exception, the regula­ 18. The regulation provides a procedure for the tion permits customers to make use of any time treatment of delinquency credit reports and threats period for making an inquiry concerning a billing by creditors to make adverse reports to third par­ error provided by State law that is longer than the ties, with respect to disputed amounts shown on inquiry period provided by the Act and the regula­ a billing statement. The regulation prohibits such tion. reports and threats during the resolution of disputes The regulation declares State law not to be and makes other requirements. Failure by creditors inconsistent, and therefore not preempted, if the to comply may result in a forfeiture penalty. creditor can comply without violating the other sections of the Federal law. The regulation establishes limitations on notifi­ RECIPROCAL cations to consumers by creditors of State law CURRENCY ARRANGEMENTS provisions and sets up a procedure through which a State may ask the Board for a determination that The Federal Reserve announced on August 29, its law gives greater protection to consumers than 1975, that its reciprocal currency (swap) arrange­ does the Federal law, or is otherwise not inconsis­ ment with the Bank of Mexico had been doubled, tent. bringing the total of that arrangement to $360 12. The merchant must give the card issuer million. prompt notification (in not over seven business The increase enlarges the System’s swap net­ days) of a refund due to the customer on either work with 14 central banks and the Bank for merchandise or services. Such amounts are to be International Settlements to $20.16 billion. credited to the customer’s account within three A swap arrangement is a renewable, short-term business days. facility under which a central bank agrees to ex­ 13. Credit-card issuers who hold deposits made change on request its own currency for the cur­ by a customer may not use those deposits to offset rency of the other party up to a specified amount the debt of the customer to the card issuer without over a limited period of time. a court order or by way of remedies consti­ The Federal Reserve swap network was initiated tutionally available to all creditors generally. in 1962. In all reciprocal currency arrangements 14. Credit-card issuers may not require mer­ the Federal Reserve Bank of New York acts on chants or other persons honoring their cards to behalf of the Federal Reserve System under the open deposit accounts with them or to procure any direction of the Federal Open Market Committee. services from the credit-card issuer not essential The Federal Reserve’s reciprocal currency ar­ to the operation of the credit-card plan. rangements are now as follows (in millions of 15. The regulation prevents bank credit-card dollars): issuers from automatically collecting credit-card payments from a customer’s deposit account, even Austrian National Bank ................................... 250 though there is an agreement with the customer National Bank of Belgium ............................. 1,000 Bank of Canada .................................................. 2,000 for such automatic collection, when some or all National Bank of Denmark ........................... 250 of the items on a periodic statement are disputed Bank of England ................................................ 3,000 by the customer. Bank of France .................................................... 2,000 16. A customer’s account may not be closed German Federal Bank ....................................... 2,000 Bank of Italy ........................................................ 3,000 or restricted during resolution of a dispute over Bank of Japan ...................................................... 2,000 an alleged error before the card issuer has fulfilled Bank of Mexico .................................................. 360 all its responsibilities under the procedures for Netherlands Bank ................................................ 500 resolving errors, solely because the customer fails Bank of Norway .................................................. 250 Bank of Sweden .................................................. 300 to pay the amount in dispute. Swiss National Bank ......................................... 1,400 17. The credit-card issuer may recapture mini­ Bank for International Settlements mum payments not made during an error resolution Swiss francs/dollars ....................................... 600 procedure if it is determined in the end that the Other European currencies/dollars .......... 1,250 customer owes some or all of the disputed amount, Total .........................................................20,160 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 603 CHANGES IN BOARD STAFF William H. Wallace, Associate Director, Divi­ sion of Federal Reserve Bank Operations, has been The Board of Governors has announced a reor­ named Director of the Division of Reserve Bank ganization of its Division of Federal Reserve Bank Examinations and Budgets, also effective Sep­ Operations and the creation of a new Board Divi­ tember 15. sion of Federal Reserve Bank Examinations and In addition, the Board has announced the pro­ Budgets. motions of Charles J. Siegman and Edwin M. Under the reorganization, the Division of Fed­ Truman from Assistant Advisers to Associate Ad­ eral Reserve Bank Operations will concentrate on visers in the Division of International Finance. reserve bank operations in the payments mecha­ nism, data processing, and building construction. The Division of Federal Reserve Bank Examina­ ADMISSION OF STATE BANK tions and Budgets will concentrate its activities in TO MEMBERSHIP IN SYSTEM the fields of Reserve Bank management and bud­ gets. The following bank was admitted to membership James R. Kudlinski, Associate Director, has in the Federal Reserve System during the period been appointed Director of the Division of Federal August 16, 1975, through September 15, 1975: Reserve Bank Operations, effective September 15. He will succeed Ronald G. Burke, who has re­ Michigan signed. Calumet ...............Merchants and Miners Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Industrial Production Released for publication September 15 and production of basic metal materials increased as output of raw steel, which had been declining, Industrial production increased by an estimated 1.3 rose. Output of textile, paper, and chemical mate­ per cent in August and, at 112.9 per cent of the rials continued to expand. Production of industrial 1967 average, was at its highest level since last fuel and power decreased, reflecting mainly strikes January. Based on revised figures, this was the in the coal industry. fourth straight monthly advance in the index. As INDUSTRIAL PRODUCTION a result of these revisions, the index hit its low Seasonally adjuste 1 d , 1 4 ra 0 tio scale, 1967=100 MATERIALS point during April at 109.9 per cent and has risen each month since then—by 0.2 per cent in May, ,y\ \s' PR0DUC1 S, 0.7 per cent in June, 0.5 per cent in July, and 1 I TOTAL 1.3 per cent in August. During August, output advances were widespread among final products - N M O FG N . D URABLE —; \ 140 CONSUMER and materials, with business equipment showing - 120 GOODS^/-^ j / j \y _ f'\ \ ' ” its first increase after a 10-month decline. / business eq. |l \ 1 ^ ^/ DURABLE MFG. Output of consumer goods rose 1 per cent in 1 \C' 1 1 i 1 1 j August and was 6 per cent above its March low. The major part of the August advance in consumer goods came from increased production of home goods, such as carpeting, furniture, and appli­ ances. Output of nondurable consumer goods con­ tinued to increase modestly. Auto assemblies, after allowance for the model changeover period, showed little change from the preceding month. Production of business equipment rose 1.8 per cent. The August increase in output of materials re­ flected gains in both durable and nondurable F.R. indexes, seasonally adjusted. Latest figures: August. goods. Output of durable goods parts rose further *Auto sales and stocks include imports. Seasonally adjusted 1967 = 100 Per cent changes from— Industrial production 1975 May June July" Aug.fJ Month Year Ql to ago ago Q2 Total .......................................................................... 110.1 110.9 111.5 112.9 1.3 - 9.8 -1.2 Products, total .......................................................................... 113.4 1 14.1 1 14.4 1 15.5 1.0 - 6.5 - .3 Final products ...................................................................... 1 13.7 114.5 114.9 116.0 1.0 - 5.0 .1 Consumer goods ............................................................ 121.2 123.1 124.3 125.6 1.0 - 3.2 1.8 Durable goods .......................................................... 1 10.5 113.1 1 14.8 117.3 2.2 -11.0 7.6 Nondurable goods ................................................... 125.3 127.1 127.8 128.7 .7 - .3 .1 Business equipment .................................................... 115.0 114.0 113.6 115.6 1.8 -10.2 -3.9 Intermediate products ...................................................... 1 12.4 112.4 112.7 1 13.9 1.1 -1 1.4 -2.1 Construction products ................................................. 107.6 106.5 107.0 107.7 .7 -15.9 -3.7 Materials ........-........................................................................... 104.9 105.6 106.6 108.6 1.9 -15.5 -2.5 "Preliminary. pEstimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial and Business Statistics CONTENTS GUIDE TO TABULAR PRESENTA­ A 48 Industrial production TION ON INSIDE BACK COVER A 50 Business activity A 50 Construction STATISTICAL RELEASES: REFER­ A 52 Labor force, employment, and ENCE ON INSIDE BACK COVER unemployment A 53 Consumer prices U.S. STATISTICS A 53 Wholesale prices A 54 National product and income A 2 Member bank reserves, Reserve Bank A 56 Flow of funds credit, and related items A 5 Federal funds—Money market banks INTERNATIONAL STATISTICS A 6 Reserve Bank interest rates A 1 Reserve requirements A 58 U.S. balance of payments A 8 Maximum interest rates; margin A 59 Foreign trade requirements A 59 U.S. reserve assets A 9 Open market account A 60 Gold reserves of central banks and A 10 Federal Reserve Banks governments A 11 Bank debits A 61 International capital transactions A 12 Money stock of the United States A 13 Bank reserves; bank credit A 74 Open market rates A 14 Commercial banks, by classes A 75 Central bank rates A 18 Weekly reporting banks A 75 Foreign exchange rates A 23 Business loans of banks A 24 Demand deposit ownership TABLES PUBLISHED PERIODICALLY A 25 Loan sales by banks A 25 Open market paper O perating R atios of Member Banks, 1974: A 26 Interest rates A 76 By size of bank A 29 Security markets A 80 By Federal Reserve district A 29 Stock market credit A 30 Savings institutions A 82 Sales, revenue, profits, and dividends A 32 Federal finance of large manufacturing corporations A 34 U.S. Government securities A 37 Federally sponsored credit agencies A 90 INDEX TO STATISTICAL TABLES A 38 Security issues A 41 Business finance A 42 Real estate credit A 45 Consumer credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 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 1960—Dec................................. 27,248 27,170 78 94 1,665 29,060 17,954 5 *396 1969—Dec.................................. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6 841 1970—Dec.................................. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.................................. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.................................. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec.................................. 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—Aue................................. 84,493 84,221 272 3,351 1,983 1,258 91,367 11,567 400 8,951 84,384 84,049 335 3,287 2,239 1,349 91,617 11,567 400 8,992 Oct................................... 83,735 83,303 432 1,793 2,083 2,984 90,971 11,567 400 9,041 Nov................................. 84,052 83,395 657 1,285 2,409 3,171 91,302 11,567 400 9,113 Dec.................................. 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—Jan................................... 86,039 85,369 670 390 2,456 3,391 93,002 11,647 400 9,235 Feb.................................. 84,744 83,843 901 147 2,079 3,419 91,168 11,626 400 9,284 Mar................................. 84,847 84,398 449 106 1 ,994 3,142 90,819 11,620 400 9,362 Apr.................................. 87,080 86,117 963 110 2,061 3,237 93,214 11,620 400 9,410 May................................ 91,918 89,355 2,563 60 1,877 3,039 97,845 11,620 429 9,464 June................................ 88,912 87,618 1,294 271 2,046 3,098 95,119 11,620 500 9,536 July................................. 88,166 87,882 284 261 1,911 3,100 94,144 11,620 500 9,616 Aug.*7.............................. 86,829 86,348 481 210 1,684 2,953 92,387 11,604 500 9,710 Week ending— 1975—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......................... 87,997 87,850 147 382 1,800 3,125 93,995 11,620 500 9,630 30......................... 87,868 87,609 259 253 1,420 3,246 93,479 11,620 500 9,641 Aug. 6......................... 86,727 86,727 180 1 ,525 3,217 92,328 11,617 500 9,700 13......................... 85,221 85,221 179 1,847 3,225 91,135 11,603 500 9,704 20......................... 87,075 86,692 383 204 1,900 2,684 92,538 11,602 500 9,715 27*....................... 87,572 86,615 957 272 1,590 2,707 92,894 11,600 500 9,715 End of month 1975—June................................ 89,895 89,665 230 561 1,791 2,997 95,926 11,620 500 9,687 July................................. 86,966 86,966 177 1,734 3,196 92,758 11,620 500 9,769 Aug.p............................. 88,032 86,677 1 ,355 231 1,225 3,012 93,340 11,598 500 9,738 Wednesday 1975—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......................... 88,662 87,631 1,031 2,000 2,157 3,222 96,790 11,620 500 9,637 30......................... 88,064 87,112 952 149 1,678 3,238 93,839 11,620 500 9,647 Aug. 6......................... 84,871 84,871 117 2,576 3,228 91,456 11,608 500 9,689 13......................... 86,227 86,227 543 2,194 3,304 92,925 11,602 500 9,710 20......................... 88,832 86,146 2,686 644 2,336 2,604 95,141 11,600 500 9,715 21 v....................... 86,887 86,887 158 1 ,852 2,846 92,414 11,599 500 9,715 1 Includes Federal agency issues held under repurchase agreements on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10. beginning Dec. 1, 1966, and Federal agency issues bought outright be­ See also note 3. ginning Sept. 29, 1971. 6 Includes certain deposits of domestic nonmember banks and foreign- 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. owned banking institutions held with member banks and redeposited in Govt, securities pledged with F.R. Banks, and excludes (if any), securities full with F.R. Banks in connection with voluntary participation by non­ sold and scheduled to be bought back under matched sale-purchase member institutions in the Federal Reserve System’s program of credit transactions. restraint. 3 Beginning with 1960 reflects a minor change in concept; see Feb. As of Dec. 12, 1974, the amount of voluntary nonmember and foreign 1961 Bulletin, p. 164. agency and branch deposits at F.R. Banks that are associated with margi­ 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. nal reserves are no longer reported. However, deposits voluntarily held liabilities and capital” are shown separately; formerly, they were netted by agencies and branches of foreign banks operating in the United States together and reported as “Other F.R. accounts.” as reserves and Euro-dollar liabilities are reported. 5 Includes industrial loans and acceptances until Aug. 21, 1959, when Digitized for FRAiSndEuRstr ial loan program was discontinued. For holdings of acceptances Notes continued on opposite page. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ BANK RESERVES AND RELATED ITEMS A 3 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Desposits, other than member bank Member bank Cur­ Treas­ reserves Other reserves rency ury with F.R. Banks Other F.R. Period or date in cash F.R. lia­ cir­ hold­ ac­ bilities cula­ ings counts4 and With Cur­ tion Treas­ For­ Other 3,6 capital4 F.R. rency Total 8 ury eign Banks and coin 7 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 . 1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 . 1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 . 1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—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. 74,709 283 2,633 326 831 3,240 30.264 6,765 37,029 . 1974—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 81,758 358 2,207 269 711 3,135 27,442 7,213 34,655 ............July 81,802 370 818 274 660 3,096 27,181 7,300 34,481 ............Aug.* Week ending— 79,904 373 5,815 285 1,294 3,297 27,618 6,893 34,511 . 1975—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 81,898 367 3,393 264 729 3,016 27,294 7,318 34,612 82,164 358 1,198 296 676 3,110 27,502 7,362 34,864 81,761 345 1,370 240 690 3,147 28,192 6,706 34,898 81,287 364 1,830 262 711 3,237 27,550 7,449 34,999 81,531 354 1,205 277 662 3,108 27,007 7,546 34,553 Aug. 6 82,036 377 209 271 607 2,941 26,501 7,662 34,163 ...........13 82,028 366 299 302 583 3,060 27,717 6,912 34,629 ...........20 81,611 370 1,178 240 715 3,196 27,399 7.081 34,480 ...........27* End of month 81,196 364 5,773 373 701 3.354 25,976 7,105 33,081 . 1975—June 81,475 350 2,675 369 686 3.354 25,740 7,546 33,286 .............July 81,732 370 2,349 342 776 3,311 26,296 7,300 33,596 .............Aug.* Wednesday 80,251 390 1,858 254 1,098 3,027 30,911 6,893 37,804 . 1975—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 30,914 6,706 37,620 ...........23 81,478 370 1,386 284 574 3,339 28,175 7,449 35,624 ...........30 82,064 351 259 665 2,895 27,018 7,546 34,564 .Aug. 6 82,328 359 293 594 2,989 28,174 7,662 35,836 13 82,059 342 660 333 554 3,148 29,861 6,912 36,773 20 81,870 370 833 232 838 3,217 26,869 7.081 33,950 27* 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies thereafter. Beginning Jan. 1963, figures are estimated except for weekly included are (beginning with first statement week of quarter): Ql, $279 averages. Beginning Sept. 12, 1968, amount is based on close-of-business million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning figures for reserve period 2 weeks previous to report date. 1974, Ql, $67 million, Q2, $58 million. Transition period ended after 8 Beginning with week ending Nov. 15, 1972, includes $450 million of second quarter, 1974. reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS □ SEPTEMBER 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess TOWquired sonal ings ings IgS 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 4 14,536 1,491 334 48 192 14 418 46 16,364 1,027 142 125 58 232 29 18,527 756 87 29 19 100 40 22.267 452 454 41 111 67 92 24,915 345 238 18 40 50 80 26,766 455 765 100 230 90 180 27,774 257 1,086 56 259 6 321 28,993 272 321 34 25 42 28 31,164 165 107 25 35 -35 42 31,134 219 1,049 -20 301 -42 264 34,806 262 1,298 41 -23 74 28 435 36,851 178 3,351 165 -58 1,464 78 ,004 36,885 191 3,287 139 133 1,662 -77 816 36,705 91 1,793 117 -49 502 36 686 36,579 258 1,285 67 -8 257 90 448 36,602 339 703 32 132 80 39 282 37,556 -64 390 13 -119 156 -91 131 35,333 232 147 10 31 37 41 71 34,513 266 106 7 53 22 56 46 35,014 120 110 7 32 25 -4 33 34,493 -1 60 9 -28 24 -89 23 34,428 548 271 11 142 90 217 65 34,687 -32 261 17 -22 54 -118 122 34.267 214 210 37 -30 14 11 144 36,692 228 3,089 174 -7 1,420 54 ,001 36,823 113 3,041 160 20 1,431 -39 870 36,947 209 3,437 167 -32 1,447 -2 130 ,006 36,920 146 3,533 161 105 1,457 31 -98 ,104 36,579 395 98 11 133 33 84 86 35,970 59 90 10 -37 6 -20 -5 69 34,960 158 229 11 140 -22 -18 69 34,447 159 180 10 ' —is* 29 39 35 70 34,386 409 70 9 117 4 90 60 34,252 230 60 7 122 15 -20 41 34,490 20 167 6 -96 -37 10 43 34,675 144 155 7 54 16 44 -12 45 34,808 279 51 -30 7 99 43 34,552 111 30 62 15 -51 23 35,076 219 22 6 25 -14 36 18 35,179 70 165 6 -3 42 16 25 -23 21 35,306 189 241 7 -11 67 1 37 56 66 34,926 311 34 11 177 21 -5 34 34,518 -1 17 8 -106 -26 -17 16 34,631 71 121 7 -33 98 9 -34 21 34,045 164 84 9 53 9 4 -5 21 34,177 334 84 9 18 61 19 137 23 33,743 -36 38 11 -76 -32 -55 25 34,603 334 77 10 80 49 12 69 28 34,615 91 188 11 19 97 -4 5 53 35,085 396 871 15 57 189 39 117 214 34,479 133 222 13 18 -20 -20 132 34,791 73 202 15 -72 78 2 54 6 54 34,695 203 382 19 107 151 9 50 -13 124 34,718 281 253 23 82 15 67 162 34,354 199 180 29 13 10 31 166 34,147 16 179 35 -46 -22 -45 108 34,418 211 204 37 -4 19 73 127 34,181 299 272 40 126 -10 36 170 "lov. 15, 1972, includes ,450 million of demand deposits of more than $400 million), JETIN . Banks are allowed to waive penalties for July 1972, p. 626. Categories shown here ;her” n with bank adaptation to Regulation J parallel the previous “Reserve city” and “Cou ively . Beginning 1973, allowable deficiencies (hence the series are continuous over time). statement week of quarter): Ql, $279 12 million; Q4, $84 million. Beginning Note.—Monthly and weekly data are ave ithin million. Transition period ended after the month or week, respectively. >r which figures are preliminary, figures Borrowings at F.R. Banks: Based on closin total because adjusted data by class are Effective Apr. 19, 1973, the Board’s Reguls iending by F.R. Banks, was revised to assist smi ’nation of banks as reserve city banks the seasonal borrowing needs of their commi has been based on size of bank (net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ MONEY MARKET BANKS A 5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less- Net- Gross transactions Net transactions Reporting banks and Total Bor­ week ending— Excess Net Per cent two-way Pur­ Loans row­ Net re­ Bor- inter­ Surplus of Pur­ trans­ chases Sales to ings loans serves 1 rowings bank or avg. chases Sales actions2 of net of net dealers 3 from at F.R. Federal deficit required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1975—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 13,290 -13,091 83.4 18,494 5,204 4,550 13,945 655 1,616 641 975 Aug. 6........... 162 13,789 -13,630 87.5 19,306 5,516 4,803 14,503 713 2,343 571 1,772 13........... -31 15,539 -15,628 100.1 20,062 4,523 4,211 15,851 312 2,477 537 1,940 20........... 51 13,423 -13,405 85.4 18,285 4,862 4,490 13,795 373 2,328 521 1,808 27........... 206 13.347 -13,183 85. 18,357 5,010 4,439 13,918 571 1,711 492 1,219 8 in New York City 1975—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 Aug. 6........... 86 4,168 -4,082 64.3 5,037 869 869 4,168 1,361 341 1,020 13........... 10 47 4,951 -4,988 78.2 5,669 718 718 4,951 1,273 294 979 20........... -1 3.671 -3,672 56.9 4,575 903 833 3,741 70 1,109 288 821 27........... 121 3,434 -3,313 53.5 4,407 973 973 3,434 898 312 586 38 outside New York City 1975—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 Aug. 6........... 76 2 9,622 -9,547 103.5 14,269 4,647 3.934 10,335 713 982 230 752 13........... -41 12 10,588 -10,640 115.3 14,392 3,804 3,493 10,900 312 1,204 243 961 20........... 52 33 9,752 -9,733 105.3 13,711 3,959 3,656 10,054 303 1,219 233 986 27........... 86 43 9,913 -9,870 107.7 13,949 4,037 3,466 10,484 571 813 180 633 5 in City of Chicago 1975—July 2........... 36 3,824 -3,789 219.7 4,690 865 865 3,825 278 278 9........... -9 4,377 -4,386 265.1 5,221 844 833 4,388 413 413 16........... -4 4,613 -4,670 268.3 5,303 691 689 4,614 508 508 23........... 6 4,233 -4,277 257.7 4,960 727 727 4,233 374 374 30........... 27 3,948 -3,920 239.1 4,862 914 913 3,949 235 235 Aug. 6........... 4,087 -4,057 248.1 5,000 913 913 4,087 384 384 13........... 4,245 -4,271 256.9 5,069 824 816 4,253 9 427 427 20........... 3,651 -3,637 219.7 4.718 1,067 1,019 3,699 49 384 384 27........... 4,146 -4,143 253.5 5,225 1,079 966 4,259 113 332 332 33 others 1975—July 2........... 314 4,258 -4,479 57.5 9,336 3,451 3,451 5,885 1,627 774 357 417 9........... 58 5,740 -5,738 75.0 10,016 4,276 3,688 6,328 588 1,188 248 940 16........... 6,264 -6,258 80.9 9,752 3,488 3,245 6,507 243 1,189 309 880 23........... 5,493 -5,496 71.4 8,655 2,973 2.973 5,682 189 621 324 297 30........... 4,920 -4,865 62.7 8,447 3,526 2.973 5,574 654 401 298 103 Aug. 6........... 5,535 -5,491 72.4 9,269 3,734 3,021 6,248 713 598 230 368 13........... 6,343 -6,370 84.2 9,324 2,980 2,677 6,646 304 776 243 534 20........... 6,101 -6,096 80.3 8,993 2,892 2,638 6,355 254 836 233 603 27........... 5,767 -5,727 76.1 8,725 2,957 2,500 6,225 458 481 180 302 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 □ SEPTEMBER 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 8/31/75 date rate 8/31/75 date rate 8/31/75 date3 rate 8/31/75 date rate Boston..................... 6 5/16/75 6*4 61/2 5/16/75 6!4 7 7/2/75 71/2 9 3/10/75 9 Vi New York............... 6 5/16/75 6V4 61/2 5/16/75 63/4 7 6/24/75 7Vi 9 3/10/75 9Vi Philadelphia........... 6 5/16/75 61/4 6 Vi 5/16/75 63/4 7 6/9/75 7 Vi 9 3/10/75 9*4 Cleveland................ 6 5/16/75 61/4 61/2 5/16/75 63,4 7 6/9/75 7Vi 9 3/10/75 9 Vi Richmond............... 6 5/16/75 6V4 61/2 5/16/75 63/4 7 6/9/75 7i/i 9 3/10/75 9 Vi Atlanta.................... 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/3/75 7Vi 9 3/10/75 91/2 Chicago................... 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 7*4 9 3/14/75 9Vi St. Louis................. 6 5/16/75 61/4 61/2 5/16/75 63/4 7 7/15/75 71/2 9 3/14/75 9Vi Minneapolis............ 6 5/23/75 61/2 61/2 5/23/75 63/4 7 6/9/75 7*4 9 3/10/75 9 Vi Kansas City............ 6 5/16/75 61/4 61/2 5/16/75 63/4 7 7/9/75 71/2 9 3/10/75 91/2 Dallas....................... 6 5/16/75 6V4 61/2 5/16/75 63,4 7 6/9/75 7Vi 9 3/14/75 91/2 San Francisco........ 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/24/75 m 9 3/10/75 9fc 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 2*4 21/2 1964—Nov. 24. 3Vi-4 4 1971—Nov. 11................... 43/4-5 5 30, 4 4 43/4 434 1956—Apr. 13.............. 2*4-3 2% Dec. 13................... 41/2-43/4 43/4 20.............. 2Y4-3 2y4 1965—Dec. 6, 4 -4i/2 41/2 4i/2-43/4 4*4 Aug. 24.............. 2V4-3 3 13. 41/2 41/2 4Vi 41/2 31.............. 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15................... 5 5 1957—Aug. 9.............. 3 -3i/2 3 14. 4 4 Feb. 5 -5 Vi 5V4 Nov. 2 1 5 3 ... ........... 3 31 -3 /2 1 /2 3 3 1/2 Nov. 2 2 0 7 . . 4 41 -4 /2 1/2 4 41 V /2 i A M p a r r . . 23................... 5* 5 4 1 - / 5 2 34 5 5 1 V /2 i 1958—J D a e n c . . 2 2 2 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 V V 4 3 4 - - 3 3 2 3 3 % 1968—M Ap a r r . . 2 2 1 1 2 6 5 9 . . . . 4 5 1 / 5 5 2 - i - / 5 5 i 1/2 5 5 4 5 1 1 V / / 2 2 i J M u a n y e 11................... 6 5 3 6 5 4 - 3 - 6 6 4 Vi 6 6 6 5 1 3/ /2 4 Mar. 1 7 . 3 .. ........... 2 21 1 4 4 - - 2 3 % 2 2 1 1 4 4 Auq. 3 1 0 6 . . 5i/ 5 4 V -5 4 i/2 5 5 1 V ,4 i July 6 7 *4 6 7 1/2 21.............. 21/4 21,4 Dec. 18, 51/4-51/2 5Vi Aug. 7 -71/2 7Vi Apr. 18.............. l34-2*4 134 20. 51/2 51/2 7*4 7Vi May 9.............. W4 m Aug. 15.............. IV4-2 iy4 1969—Apr. 4, 51/2-6 6 1974—Apr. 25................... 7*4-8 8 Sept. 12.............. m -2 2 8, 6 6 30 5 3 23.............. 2 2 Dec. 73AS 734 Oct. 24.............. 2 -21/2 2 1970—Nov. 11, 534-6 6 13/4 734 Nov. 7.............. 21/2 21/2 13, 5^-6 53/4 16, 5% 53/4 1975—Jan. 7*4-73/4 73/4 1959—Mar. 6.............. 21/2-3 3 Dec. 1, 5i/i-53/4 53/4 10................... 7*4-73,4 7*4 16.............. 3 3 4, 51/2-5% 5 Vi 24................... 7*4 7*4 May 29.............. 3 -31/2 31/2 11, 51/i 51/2 Feb. 5................... 634-71/4 634 June 12.............. 31/2 31/2 7................... 634 634 Sept. 11.............. 31/2-4 4 1971—Jan. 8, 51/4-5 i/i 51/4 Mar. 10................... 6*4-634 6*4 18.............. 4 4 15. 51/4 51/4 14................... 6*4 6*4 1960—June 1 3 0 . . . . . . . . . . . . . .. . . . . . . . . . . . . . 3 3 1 1 / / 2 2 - - 4 4 4 31/2 2 2 1 2 9 9 , , . 5 5 5 - - 5 5 1 1/ 4 4 5 5 5 % May 2 1 3 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -6*4 6 6 S A e u p g t . . 1 1 9 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 - i 3 /i 1 /2 3 3 3 1/2 J F u e l b y . 1 1 1 9 6 3 4 4 V ^ 4 4 4 3 - - / 5 5 4 5 4 5 3/4 In effect, Aug. 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

SEPTEMBER 1975 a RESERVE REQUIREMENTS A 7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963........... 161/2 12 A 1966—July 14,21 4 4 5 Sept. 8,15 6 1967—Mar. 2............. Mar. 16.......... l'A 3*4 1968—Jan. 11,18.... 16% 17 12 121/2 1969—Apr. 17........... 17 17% 12 % 13 1970—Oct. 1............... 5 Beginning Nov. 9, 1972 Net demand 2}4 Time 3 Other time Effective date 0-2 2-10 10-100 100-400 Over Savings Over 5 5, maturing in— 400 0-5 30-179 180 days days and over 1972—Nov. 9............. 8 10 12 « 161/1 171/2 7 3 7 3 7 5 Nov. 16........... 13 1973—July 19............. IOI/2 121/z 131/2 18 1974—Dec. 12........... 171/2 6 3 1975—Feb. 13........... m 10 12 13 I61/2 In effect Aug. 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 16J/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 □ SEPTEMBER 1975 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type and size July 20, Sept. 26, Apr. 19, Jan. 21, Type and size July 1, Nov. 1, Nov. 27, Dec. 23. of deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits............... 4% Savings deposits......................... Other time deposits:1 Other time deposits (multiple- Multiple maturity: 2 and single-maturity):1, 2 30-89 days........... 4 4% Less than $100,000: 90 days to 1 year. 5 30-89 days.......................... 5 5 5 5 1-2 years............. 5 5% 90 days to 1 year............... 5% 5% 5% 5% 2 years or more.. 5Va 1-2% years......................... 6 6 6 6 Single-maturity: 2Vl years or more............. 6% 6% 6Vi 6% Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000: 2 1 - y 2 e a y rs e a o r r s . m .... o ... r . e ... . . . 5% 5 5V % 4 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . . . . . (4) m m m 7% $100,000 or more: Governmental units.......... (5) (5) m 7% 30-59 days........... 5% (3) $100,000 or more.................. (3) (3) (3> (3) 60-89 days........... 5V4 (3) 90-179 days......... 5% 5% 6 (3) 180 days to 1 year 6'A (3) 1 year or more... 6 Va (3) 1 For exceptions with respect to certain foreign time deposits, see amount were subject to the 6% per cent ceiling that applies to time de­ Bulletin for Feb. 1968, p. 167. posits maturing in 2% years or more. 2 Multiple-maturity time deposits include deposits that are automati­ Effective Nov. 1, 1973, a ceiling rate of 11/a 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 % % p p e er r c c e e n n t t ) f June 24, 1970 g re o c v e e iv rn e m in e t n e t r a e l s t u r n a i t t e s s w on e r t e i m p e e r d m ep it o te s d it s t w o i h th o l d d e n s o a m vin in g a s t i d o e n p s o u s n it d s er a n $ d 1 0 c 0 o ,0 u 0 ld 0 90-179 days 6% per cent I irrespective of maturity, as high as the maximum rate permitted on such 180 days to 1 year 7 per cent [ May 16, 1973 deposits at any Federally insured depositary institution. 1 year or more 7% 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 s date date (T) 1937—Nov. 1 1945—Feb. 4................... 40 50 1945—Feb. 5 July 4.................... 50 50 July 5 1946—Jan. 20.................... 75 75 1946—Jan. 21 1947—Jan. 31.................... 100 100 1947—Feb. 1 1949—Mar. 29................... 75 75 1949—Mar. 30 1951—Jan. 16................... 50 50 1951—Jan. 17 1953—Feb. 19.................... 75 75 1953—Feb. 20 1955—Jan. 3.................... 50 50 1955—Jan. 4 Apr. 22................... 60 60 Apr. 23 1958—Jan. 15................... 70 70 1958—Jan. 16 Aug. 4.................... 50 50 Aug. 5 Oct. 15................... 70 70 Oct. 16 1960—July 27................... 90 90 1960—July 28 1962—July 9................... 70 70 1962—July 10 1963—Nov. 5................... 50 50 1963—Nov. 6 1968—Mar. 10................... 70 70 1968—Mar. 11 June 7................... 70 50 70 June 8 1970—May 5................... 80 60 80 1970—May 6 1971—Dec. 65 50 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 Effective Jan,. 3, 1974....................... 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 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—July.. 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‘80i *298 June. 421 161 612 20 691 488 -529 180 109 July.. 1,505 800 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 • securi­ agree­ Repur­ Gross Gross Gross ties Gross Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions sales chases chases sales chases tions right ments 197 0 12.362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 1974—July. 1,113 211 2,587 4,269 4,965 -2,381 761 35 -270 121 -207 - 2,011 Aug.. 1,652 850 9,061 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 July. 1,505 800 15,532 15,139 5,977 6,146 -2,866 -61 3 -2,926 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—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 May. . .. 4 * 1 * 1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS □ SEPTEMBER 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1975 1975 1974 Aug. 27 Aug. 20 Aug. 13 Aug. 6 July 30 Aug. 31 July 31 Aug. 31 Assets 11,599 11,600 11,602 11,608 11,620 11,598 11,620 11,460 500 500 500 500 500 500 500 400 358 355 357 339 332 363 338 232 Loans: 158 644 543 117 149 231 177 4,320 Acceptances: 671 662 657 664 673 684 685 277 * 63 37 156 Federal agency obligations: 5,396 5,083 5,083 5,083 5,083 5,396 5,083 3,820 106 53 90 U.S. Govt, securities: Bought outright: Bills................................................................................. 34,083 33,655 33,337 31,415 34,621 33,600 34,475 38,492 399 965 42,586 42,586 42,886 42,886 42,886 42,812 42,886 39,581 4,822 4,822 4,522 4,522 4,522 4,869 4,522 3,058 Total bought outright..................................................... i 81,491 1 81,063 i 81,144 i 79,788 i 82,029 i 81,281 i 81,883 i 81,131 Held under repurchase agreements.............................. 2,580 899 1,265 Total U.S. Govt, securities............................................... 81,491 83,643 81,144 79,788 82,928 82,546 81,883 81,131 Total loans and securities.................................................. 87,716 90,201 87,427 85,652 88,923 89,103 87,828 89,548 Cash items in process of collection................................. * 6,390 7,437 7,326 7,723 6,397 *5,531 5,922 6,057 305 303 301 300 300 305 300 245 Operating equipment....................................................... 2 2 2 2 2 2 2 Other assets: Denominated in foreign currencies............................. 21 11 11 1 31 26 1 220 All other............................................................................ 2,518 2,288 2,990 2,925 2,905 2,679 2,893 803 Total assets............................................................................ *109,409 112,697 110,516 109,050 111,010 *110,107 109,404 108,965 Liabilities F.R. notes........................................................................... 72,882 73,040 73,334 73,066 72,533 72,727 72,392 66,322 Deposits: *26,869 29,861 28,174 27,018 28,175 *26,296 25,740 30,247 U s Treasury General account................................ 833 660 * * 1,386 2,349 2,675 3,303 232 333 293 259 284 342 369 372 Other: All other2...................................................................... 838 554 594 665 574 776 686 654 *28,772 31 408 29 061 27,942 30 419 *29 763 29 470 34 576 4,538 5,101 5,132 5,147 4,719 4,306 4,188 4,535 Other liabilities and accrued dividends.......................... 998 1 034 978 983 1,077 1,037 1,068 1,277 *107 190 110 583 1IV0/O8 j J5V05J 107,138 108 748 *107,833 107 118 106 710 Capital accounts 914 912 912 912 911 914 911 881 897 897 897 897 897 897 897 844 408 305 202 103 454 463 478 530 Total liabilities and capital accounts.............................. *109,409 112,697 110,516 109,050 111,010 *110,107 109,404 108,965 Contingent liability on acceptances purchased for 1,202 Marketable U.S. Govt, securities held in custody for foreign and international accounts.............................. 42,476 42,744 42,039 42,342 42,435 43,204 42,124 30,796 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).......... 78,340 78,325 78,268 78,090 78,081 78,553 78,070 70,832 Collateral held against notes outstanding: Gold certificate account................................... 11,596 11,596 11,596 11,596 11,596 11,596 11,596 2,380 Special Drawing Rights certificate account. 302 302 302 302 302 302 302 Acceptances. U.S. Govt, securities. 69,005 69,005 69,005 69,055 69,030 69,305 69,030 69,575 Total collateral............... 80,903 80,903 80,903 80,953 80,928 81,203 80,928 71,955 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

SEPTEMBER 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 Aug. 27 Aug. 20 Aug. 13 Aug. 6 July 30 Aug. 31 July 31 Aug. 31 Loans—Total........................................................................ 158 646 541 117 147 231 178 4,321 153 639 517 95 135 196 162 4,226 5 7 24 22 12 35 16 95 91 days to 1 year.............................................................. 671 725 657 664 710 840 685 277 Within 15 days................................................................. 104 158 89 95 136 268 99 20 16-90 days.......................................................................... 395 399 391 380 400 381 403 184 172 168 177 189 174 191 183 73 81,491 83,643 81,144 79,788 82,928 82,546 81,883 81,131 3,913 6,225 7,947 5,396 4,768 3,826 5,294 3,058 9 1 1 6 d 9 a 0 y d s a t y o s . 1 . .. y .. e .. a .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 7 , , 5 1 5 25 6 2 1 1 7, , 1 4 1 1 1 0 2 1 0 4 , , 4 0 5 46 2 2 1 0 4 , , 7 9 3 57 6 2118,,040592 2 1 2 6 , , 8 7 0 5 5 8 2 1 2 5 , , 1 7 3 6 0 0 2 2 0 4 , , 9 3 2 4 6 8 1-5 years............................................................................ 29,708 29,708 28,366 28,366 28,366 29,858 28,366 21,024 5-10 years.......................................................................... 5,693 5,693 7,137 7,137 7,137 5,756 7,137 9,893 Over 10 years.................................................................... 3,496 3,496 3,196 3,196 3,196 3,543 3,196 1,882 Federal agency obligations—Total.................................. 5,396 5,189 5,083 5,083 5,136 5,486 5,083 3,820 Within 15 days1............................................................... 140 257 115 79 230 27 31 113 163 199 314 276 113 276 99 91 days to 1 year.............................................................. 579 520 520 520 532 579 531 513 1-5 years............................................................................ 2,700 2,544 2,544 2,544 2,544 2,700 2,544 1 ,848 5-10 years.......................................................................... 1,311 1 ,187 1 ,187 1 ,187 1 ,144 1 ,311 1 ,187 865 Over 10 years.................................................................... 553 518 518 518 561 553 518 464 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—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 D N e o c v . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 , , 9 1 1 9 8 2 . . 7 4 1 9 0 , , 9 5 3 3 1 8 . . 8 9 5 5 , , 1 1 5 6 2 0 . . 7 2 1 12 2 , , 2 3 6 7 0 9 . . 6 8 7 7 , , 1 2 0 1 7 9 . . 9 6 1 1 2 31 8 . . 8 0 3 3 2 1 4 2. . 8 6 1 1 3 3 1 1 . . 5 8 8 8 7 6 . . 5 6 7 6 0 9. . 3 6 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.................................. 22,707.7 10,810.3 4,770.6 11,897.5 7,126.9 128.3 337.5 115.3 82.1 68.8 May................................ 22,739.7 10,826.1 4,852.6 11,913.6 7,016.0 129.7 341.3 121 .3 83.0 68.2 June................................ r22,504.2 10,612.2 r4,755.2 *-11,892.0 r7,136.9 r124.6 328.6 115.5 80.2 66.7 July................................. 22,810.7 10,709.5 4,822.7 12,101.1 7,278.5 126.2 331.0 115.8 81.6 68.2 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s include some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 MONEY STOCK □ SEPTEMBER 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi Mo Mi Mi M5 Mi M2 Mi Mi M6 Composition of measures is described in the Note below. 1972—Dec. 255.8 525.7 844.9 569.7 263.0 530.7 848.0 574.9 892.2 1973—Dec. 271.5 572.2 919.6 636.0 983.4 279.1 577.3 922.8 641.3 986.8 1974—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 1,029.7 722.9 1.115.3 284.9 635.5 1,029.6 719.6 1.113.7 June 294.0 647.3 1,046.5 731.3 1,130.5 292.1 r646.8 1,048.2 729.1 *•1,130.5 July. 294.5 651.7 1.057.3 733.8 1.139.4 294.0 651.2 1,059.0 732.5 1.140.3 Note.—Composition of the money stock measures is as follows: M3: M2 plus mutual savings bank deposits, savings and loan shares, and credit union shares (nonbank thrift). Mu Averages of daily figures for (1) demand deposits of commercial Mw M2 plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in M6: 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, 3nd Ms, 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 nonmem­ ber 1972—Dec................. 56.9 198.9 43.9 269.9 313.8 319.1 57.9 205.1 152.4 51.4 44.2 267.6 311.8 317.3 7.4 1973—Dec................. 61.6 209.9 63.8 300.7 364.5 347.4 62.7 216.4 157.0 56.6 64.0 298.2 362.2 345.6 6.3 1974—July................. 64.8 215.6 83.6 319.2 402.8 360.0 65.3 214.7 154.4 56.5 82.8 319.2 402.0 361.7 5.4 Aug................ 65.5 215.0 83.8 321.5 405.2 360.7 65.7 211.6 152.3 56.1 87.1 321.1 408.2 360.3 4.0 Sept................ 65.9 214.8 84.8 322.7 407.5 361.7 65.8 213.1 153.3 56.6 88.7 321.3 410.1 360.5 5.5 Oct.................. 66.5 215.2 86.2 325.9 412.1 363.2 66.4 214.7 154.4 57.1 88.8 324.6 413.3 361.7 3.7 Nov................ 67.4 216.2 85.5 328.0 413.6 365.3 67.9 217.3 156.0 57.7 87.1 324.6 411.7 363.0 3.4 Dec................. 67.9 216.5 90.3 329.1 419.4 368.2 69.0 223.3 160.4 58.9 90.5 326.3 416.8 366.5 4.9 1975—Jan.................. 68.2 214.0 92.7 333.3 426.0 371.5 67.8 221.5 158.9 58.7 91.9 332.2 424.1 371 .0 4.0 Feb................. 68.8 214.7 92.1 336.8 428.9 375.3 67.9 212.6 152.4 56.6 89.2 337.4 426.6 375.4 3.4 Mar................ 69.5 216.6 89.8 340.3 430.0 380.8 68.9 214.4 154.0 57.1 88.1 342.6 430.6 382.7 3.9 Apr................. 69.6 217.5 88.4 343.3 431.7 386.8 69.2 219.5 157.6 58.8 85.8 346.1 432.0 389.1 4.2 May............... 70.3 219.4 85.5 347.6 433.1 392.4 70.1 214.8 154.1 57.8 84.1 350.6 434.7 394.1 4.2 June............... >71.2 222.8 84.1 353.3 437.3 ’•399.2 71 .3 220.8 157.9 60.0 82.3 354.6 436.9 r401.5 4.2 July................ 71.5 223.0 82.1 357.2 439.3 405.6 72.0 222.0 158.5 60.5 81.3 357.2 438.5 407.8 3.4 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

SEPTEMBER 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—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 r37.08 35.30 480.6 314.4 159.9 6.3 479.7 317.2 158.3 4.2 489.2 488.2 Oct........ r36.85 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.... r36.88 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.... r34.63 r34.56 r34.47 r32.80 493.7 329.0 162.6 2.1 491.8 329.8 159.0 3.0 501.2 499.2 June.... 34.87 34.65 34.67 33.00 500.5 330.8 165.9 3.8 497.5 330.2 164.2 3.1 507.5 504.5 July.... 34.99 34.69 34.80 32.94 498.5 330.8 165.2 2.5 497.2 330.2 164.5 2.5 505.3 504.0 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 sold 2 Total loans ury sold 2 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—Aug. 285.... 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 r498.2 503.0 182.6 185.3 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. 26*.... 694.7 496.4 501.1 180.4 183.2 58.7 139.6 690.2 490.3 495.0 180.0 182.8 59.6 140.3 Apr. 30*. . . 696.2 492.4 497.0 179.8 182.5 64.5 139.3 695.2 490.6 495.2 180.4 183.1 63.7 140.9 May 28*.... 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 30*.... 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 Aug. 27*... 706.1 486.9 491.4 175.8 178.6 76.3 142.9 701.3 485.8 490.3 174.3 177.1 72.8 142.6 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. 1959— about $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 fosre FcuRriAtieSsE,” Ran d $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 □ SEPTEMBER 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia­ Interbank3 Other Total Num­ FRS membership Cash bilities Bor­ capital ber and FDIC assets 3 and row­ ac­ of insurance Total Loans capital Total3 Demand ings counts banks l U.S. Other ac­ De­ Treas­ 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series 6 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. 3H.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 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—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... 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 14,580 Aug. 27*.. 736,450 520,990 72,830142,630102,970 893,570 719,360 30,99010,380 2,880 241,890 433,220 58,780 66,350 14,580 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 1960—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 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—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... 556,088 421,428 36,394 98,266 98,603 694,743 542,515 32,422 9,222 2,859 189,688 308,324 65,411 47,320 5,774 Dec. 31... 568,532 429,537 38,921 100,073106,995 715,615 575,563 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 5,796 Aug. 27*.. 554,007 402,281 51,899 99,827 87,208 686,266 545,021 29,335 8,932 2,099 183,283 321,372 54,175 50,281 5,796 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 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 1972—Dec. 31...| 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31.. .| 678,113 490,527 57,961 129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—June 30...! 709,904 521,424 51,832136,648123,536 871,986 703,767 40,534 8,427 8,355 250,225 396,226 65,514 61,003 14,108 Dec. 31...I 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 1975—Aprl 16... 733,913 529,350 59,540145,023110,950 893,141 720,607 31,29110,845 4,628 249,373 424,470 65,274 64,578 14,274 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 I960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 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 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 1975—Apr. 16... 425,928 312,844 32,503 80,581 66,841 523,006 416,620 17,146 7,157 2,809 144,014 245,494 44,405 36,652 4,720 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 I960—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 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 1975—Apr. 16... 136,425 102,992 10,127 23,306 29,358 177,453 135,949 12,984 3,047 735 46,287 72,895 17,988 12,586 1,066 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 6,81o 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 1972—Dec. 31... 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Dec. 31... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—June 30... 159,186 106,033 15,898 37,255 14,565 179.457 156,406 1,323 610 1,731 56,580 96,162 2,678 14,057 8,347 Dec. 31... 165,709 111,300 15,211 39,199 18,380 190,435 165,827 1,525 642 1,616 61,240 100,804 3,138 14,799 8,436 1975—Apr. 16... 171,559 113,513 16,909 41,136 14,750 192,682 168,039 1,161 641 1,084 59,071 106,082 2,881 15,339 8,488 Noninsured nonmember: 1941—Dec. 31... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1947—Dec. 317.. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 I960—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 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 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 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 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 21,047 204,051 172,454 2,422 1,445 1,624 63,302 103,661 5,520 15,410 8,685 1 Loans to farmers directly guaranteed by CCC were reclassified as 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, 6 For the last-Wednesday-of-the-month series, figures for call dates member banks exclude and noninsured nonmember banks include 1, 2, are shown for June and December as soon as they became available. and 3 noninsured trust companies that are members of the Federal Re­ 7 Beginning with Dec. 31, 1947, the series was revised; for description, serve System. see note 4, p. 587, May 1964 Bulletin. Comparability of figures for classes of banks is affected somewhat by 8 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 a SEPTEMBER 1975 ASSETS BY CLASS OF BANK, DECEMBER 31, 1974 (Amounts in millions of dollars) Member banks1 All Insured Large banks Account commercialcommercial Non­ banks banks member Total New City of Other All other banks1 York Chicago large City Cash bank balances, items in process.............................. 128,042 125,375 106,995 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 34 719 719 710 188 519 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 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 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 30,485 103,210 102,951 74,460 5,213 1,558 26,751 40,938 28,750 80,242 80,033 57,440 3,177 835 20,819 32,608 22,802 32,847 32,763 22,125 462 161 6,954 14,549 10,722 Residential-repair/modemize................................ 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 8,281 8,280 7,430 665 358 4,273 2,134 851 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 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

SEPTEMBER 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 banks banks Total All other 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 adjusted 3.................. 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 total assets Cash and balances with other banks. 13.9 13.8 14.9 19.6 12.8 15.0 12.8 10.3 21.2 21.3 19.4 11.7 14.9 17.6 25.9 27.4 Total securities held.................................... Trading account securities..................... .9 .9 1.1 2.2 2.2 1.4 U.S. Treasury...................................... .3 .3 .4 .7 1.2 .4 States and political subdivisions.... .4 .4 .5 1 .0 .7 .6 All other trading account securities. .2 .2 .3 .5 .3 .4 Bank investment portfolios.............. 20.3 20.5 18.3 9.5 12.7 16.2 25.8 27.4 U.S. Treasury.................................. 5.6 5.7 5.1 3.1 3.6 4.6 6.8 7.6 States and political subdivisions. 10.5 10.7 9.9 4.9 6.5 9.0 13.9 12.8 All other portfolio securities........ 4.1 4.1 3.3 1.5 2.6 2.6 5.1 7.0 Other loans and Federal funds sold. 59.7 59.7 60.0 59.7 67.2 61.3 57.9 58.7 All other assets...................................... 5.2 5.1 5.6 9.0 5.1 6.1 3.4 3.6 Total loans and securities................... 80.9 81.0 79.5 71 .4 82.1 78.9 83.8 86.1 Reserves for loans and securities. .9 1.0 1.0 1.1 1.3 1.0 .9 .8 Equity capital—Total..................... 6.5 6.5 6.3 6.1 5.5 5.6 7.1 7.1 Total capital accounts................... 6.9 7.0 6.7 6.7 5.6 6.2 7.4 7.6 Number of banks. 14,465 14,216 5,780 13 155 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 □ SEPTEMBER 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 Aug. 7................... 397,822 16,646 13,558 1,962 437 689297,529 126,427 3,926 1,457 4,379 111 2,696 10,190 21,710 58,985 14................... 395,361 15,466 13,113 1,229 450 674296,465 126,521 3,911 1,059 4,275 109 2,679 9,956 21,736 59,242 21................... 393,575 14,686 12,368 1,334 401 583296,071 126,880 3,922 634 3,783 104 2,672 9,894 21,812 59,426 28................... 397,242 16,525 12,021 3,193 428 883297,819 126,771 3,893 2,111 3,885 102 2,690 9,852 21,894 59,510 1975 July 2................... 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................... 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 16................... 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 23................... 387,697 14,082 11,746 1,441 333 562280,742 121,082 3,518 879 3,528 114 2,331 8,962 20,137 59,067 30................... 389,036 15,560 13,335 1,419 342 464280,929 120,611 3,549 766 3,653 110 2,313 9,133 20,024 59,059 Aug. 6................... 390,355 17,303 13,744 2,565 538 456280,693 120,052 3,566 1,484 3,618 115 2,295 8,965 20,055 58,990 1 3 388,160 15,888 13,430 1,530 471 457 279,409 119,714 3,568 815 3,739 115 2,285 8,917 19,967 59,046 20................... 387,219 14,251 11,898 1,285 519 549 279,216 119,403 3.581 676 3,519 119 2,260 9,022 19,954 59,030 2 7 387,601 15,422 13,102 1,413 475 432278,427 119,090 3.581 896 3,416 98 2,261 8,885 19,942 59,015 New York City 1974 Aug. 7................... 90,799 2,019 1,903 55 61 74,148 37,601 140 1,322 2,724 563 3,520 8,246 7,073 1 4 89,600 1,730 1,558 57 115 73,102 37,625 138 909 2,660 556 3,430 8,267 7,125 21................... 89,434 1,895 1,649 165 80 72,525 37,682 137 567 2,223 557 3,415 8,292 7,186 2 8 91,238 1,894 1,607 208 79 74,440 37,787 132 2,016 2,414 566 3,346 8,372 7,213 1975 Julu 2................... 88,847 1,198 768 46 310 71,317 37,649 825 2,788 473 3,277 8,002 7.405 9.................... 89,337 1,001 769 9 223 72,205 37,452 2,630 2,230 477 3,176 7,955 7.405 16.................... 88,517 2,147 1,875 53 219 70,214 37,235 691 2,431 481 3,146 7,978 7,424 23.................... 86,916 1,482 1,032 224 226 69,359 36,773 772 2,464 450 3,046 7,934 7,445 30.................... 87,850 2,284 1,862 236 186 69,454 36,735 648 2,578 439 3,150 7,791 7,449 Aug. 6.................... 86,765 1,352 849 356 147 69,919 36,693 1,133 2,451 433 3,069 7,826 7,435 13.................... 86,239 1,753 1,557 51 145 68,850 36,443 634 2,552 432 2,992 7,771 7,463 20.................... 86,670 1,837 1,536 46 255 68,558 36,186 596 2,272 416 3,021 7,776 7,475 2 7 86,096 2,037 1,812 62 163 68,030 35,996 809 2,162 412 2,953 7,794 7,501 Outside New York City 1974 Aug. 7................... 307,023 14,627 11,655 1,907 437 628223,381 88,826 3,786 135 1,655 2,133 6,670 13,464 51,912 14................... 305,761 13,736 11,555 1,172 450 559223,363 88,896 3,773 150 1,615 2.123 6,526 13,469 52,117 21................... 304,141 12,791 10,719 1,169 400 503223,546 89,198 3,785 67 1,560 2,115 6,479 13,520 52,240 2 8 306,004 14,631 10,414 2,985 428 804223,379 88,984 3,761 95 1,471 2.124 6,506 13,522 52,297 1975 July 2................... 306,056 17,605 14,839 1,664 645 457212,583 84,677 3,397 156 1,108 1,875 6,101 12,598 51,804 9................... 308,595 19,946 14,925 3,902 640 479212,348 84,625 3,422 318 1,012 1,861 6,153 12,513 51,719 16................... 303,442 14,907 12,287 1,698 465 457212,019 84,494 3,427 248 1,057 1,861 5,990 12,362 51,692 23................... 300,781 12,600 10,714 1,217 333 336211,383 84,309 3,438 107 1,064 1,881 5,916 12,203 51,622 30................... 301,186 13,276 11,473 1,183 342 278211,475 83,876 3,459 118 1,075 1,874 5,983 12,233 51,610 Aug. 6................... 303,590 15,951 12,895 2,209 538 309210,774 83,359 3,477 351 1,167 1,862 5,896 12,229 51.555 13................... 301,921 14,135 11,873 1,479 471 312210,559 83,271 3,480 181 1,187 1,853 5,925 12,196 51,583 20................... 300,549 12,414 10,362 1,239 519 294210,658 83,217 3.491 80 1,247 1,844 6,001 12,178 51.555 27................... 301,505 13,385 11,290 1,351 475 269210,397 83,094 3.492 87 1,254 1,849 5,932 12,148 51,514 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ WEEKLY REPORTING BANKS A 19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer­ Notes and bonds cial banks maturing— Obligations Other bonds, of States corp. stocks, Wednesday and and Con­ For­ political securities sumer eign All Certif­ subdivisions instal­ govts. other Total Bills icates Total Do­ For­ ment 2 mes­ eign Within 1 to After Certif. tic 1 yr. 5 yrs. 5 yrs. Tax of war­ All partici­ All rants 3 other pation others Large banks— Total 1974 3,865 6,877 34,502 2,075 20,329 21,284 2,458 3,538 11,519 3,769 62,363 6,874 41,354 2,516 11,619 ..................Aug. 7 3,911 6,725 34,560 1,875 19,906 21,426 2,545 3,644 11,446 3,791 62,004 6,770 41,152 2,542 11,540 .............................14 3,752 6,808 34,610 1,895 19,879 20,976 2,114 3,440 11,164 4,258 61,842 6,562 41,192 2,539 11,549 .............................21 3,704 6,871 34,766 1,656 20,114 21,130 2,328 3,615 10,900 4,287 61,768 6,508 41,072 2,541 11,647 .............................28 1975 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 2 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 .............................9 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 2,392 5,773 34,031 1,572 17,943 32,160 7,396 5,122 16,571 3,071 60,387 6,491 39,678 2,445 11,773 .............................30 2,394 5,818 34,048 1,488 17,805 32,097 6,914 5,136 17,003 3.044 60,262 6,498 39,615 2.400 11,749 ..................Aug. 6 2,336 5,726 34,076 1,444 17,661 32,640 7,556 5,134 16,893 3,057 60,223 6,571 39,557 2.401 11,694 .............................13 2,210 5,770 34,138 1,461 18,073 32,975 8,102 4,426 17,359 3,< 60,777 6,650 40,046 2,400 11,681 .............................20 2,258 5,546 34,234 1,560 17,645 33,437 8,605 4,568 17,089 3,175 60,315 6,360 40,045 2.395 11,515 .............................27 New York City 1974 1,581 3,172 2,499 933 4,744 3,823 446 419 1,736 1,222 10,809 2,183 5,874 544 2,208 .Aug. 7 1,630 2,993 2,512 870 4.358 4,093 644 473 1,754 1,222 10,675 2,143 5,762 546 2,224 ............14 1,571 3,078 2,536 860 4,397 4,291 400 402 1,912 1,577 10,723 2,059 5,900 547 2,217 ............21 1,586 3,186 2,555 885 4.358 4,264 364 356 1,895 1,649 10,640 2,055 5,766 540 2,279 ............28 1975 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 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 .................................9 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 1,128 2,601 2,552 570 3,889 6,534 1,143 609 3,960 822 8.960 1,418 5,033 514 1,995 . Aug. 6 1,091 2,500 2,554 560 3,720 6.1 1,592 583 3,791 842 8,828 1,432 4,951 517 1,928 ............13 1,079 2,547 2,560 561 3,928 7,105 1,811 458 3,987 849 9,170 1,449 5,264 512 1,945 ............20 1,106 2,385 2,566 655 3,571 6,935 1,601 481 3,924 929 9,094 1,294 5,405 509 1,886 ............27 Outside New York City 1974 2,284 3,705 32,003 1,142 15,585 17,461 2,012 3,119 9,783 2,547 51,554 4,691 35,480 1,972 9,411 ..................Aug. 7 2,281 3,732 32,048 1,005 15,548 17,333 1,901 3,171 9,692 2,569 51,329 4,627 35,390 1,996 9,316 .............................14 2,181 3,730 32,074 1,035 15,482 16,685 1,714 3,038 9,252 2,681 51,119 4,503 35,292 1,992 9,332 .............................21 2,118 3,685 32,211 771 15,756 16,866 1,964 3,259 9,005 2,638 51,128 4,453 35,306 2,001 9,368 .............................28 1975 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 ..................July 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 1,374 3,255 31,488 939 14,126 25,007 5,503 4,533 12,729 2,242 51,428 5,064 34,627 1.925 9,812 .............................30 1,266 3,217 31,496 918 13,916 25,563 5,771 4,527 13,043 2,222 51,302 5,080 34,582 1,886 9,754 ..................Aug. 6 1,245 3,226 31,522 884 13,941 25,832 5,964 4,551 13,102 2,215 51,395 5,139 34,606 1,884 9,766 .............................13 1,131 3,223 31,578 900 14,145 25.870 6,291 3,968 13,372 2,239 51,607 5,201 34,782 1,888 9,736 .............................20 1,152 3,161 31,668 905 14,074 26,502 7,004 4,087 13,165 2,246 51,221 5,066 34,640 1,886 9,629 .............................27 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS □ SEPTEMBER 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ Domestic Wednesday process with and do­ sidiar­ assets total interbank of F.R. coin mestic ies not liabil­ States collec­ Banks banks consol­ ities and tion idated Total polit­ U.S. 6 IPC ical Govt. Com­ Mutual sub­ mer­ sav­ divi­ cial ings sions Large banks— Total 1974 Aug 7......................... 30,128 23,040 4,143 10,020 1,596 28,385 495,134 152,616 109,945 5,793 1,408 21,626 712 14......................... 31,066 23,656 4,474 9,909 1,598 28,319 494,383 153,829 113,214 5,960 1,143 20,692 651 21......................... 29,080 24,950 4,502 9,654 1,610 27,562 490,933 150,969 110,239 5,555 2,847 20,471 582 28......................... 30,011 20,482 4,721 10,624 1,639 27,894 492,613 153,287 111,840 5,586 1,732 21,251 612 1975 July 2......................... 35,959 20,618 4,566 12,504 1,755 38,905 509,210 169,097 121,565 6,413 1,330 24,694 914 9......................... 32,615 18,612 4,731 12,207 1,776 37,855 505,728 162,384 117,715 5,932 1,421 23,956 868 16......................... 34,022 25,019 4,828 12,717 1,750 36,542 506,837 163,819 119,284 5,968 1,494 23,792 764 23......................... 30,758 23,845 4,986 11,634 1,743 36,282 496,945 157,217 115,375 5,933 979 21,980 699 30......................... 30,884 22,027 5,036 11,633 1,751 36,854 497,221 158,966 115,875 5,947 859 23,360 736 Aug. 6......................... 31,217 21,304 4,431 11,294 1,748 36,772 497,121 157,934 115,157 5,873 1,688 23,150 811 13......................... 30,308 22,005 4,865 10,704 1,739 36,348 494,129 155,203 115,919 5,609 1,157 20,908 724 20......................... 30,238 23,451 4,889 10,823 1,734 35,788 494,142 156,232 115,059 5,668 2,050 22,396 671 27......................... 30,505 20,895 5,045 10,980 1,741 36,679 493,446 156,385 115,582 5,572 1,481 21,932 714 New York City 1974 Aug. 7......................... 10,133 7,823 490 4,267 710 9,171 123,393 42,875 23,601 305 138 10,657 363 14......................... 10,294 7,288 499 4,346 715 9,479 122,221 42,537 24,558 440 125 9,794 337 21......................... 9,037 7,877 483 3,994 723 8,900 120,448 40,818 23,471 314 562 9,649 292 10,861 5,540 508 4,573 728 8,994 122,442 44,274 25,167 297 345 10,498 321 1975 July 2......................... 12,004 6,352 511 5,225 800 13,712 127,451 48,577 27,286 325 130 12,055 520 9......................... 11,044 6,405 520 4,953 800 13,454 126,513 45,363 25,482 228 140 11,879 477 16......................... 11,364 7,572 504 5,589 795 12,677 127,018 46,172 25,799 268 205 12,096 422 23......................... 10,601 6,753 515 5,371 798 12,547 123,501 44,546 25,174 318 80 11,184 384 30......................... 11,076 6,001 544 4,752 795 13,219 124,237 45,734 25,906 335 73 11,633 405 Aug. 6......................... 10,103 6,603 515 4,565 789 12,701 122,041 43,037 24,803 288 120 10,951 461 13......................... 9,305 7,084 519 4,146 787 12,479 120,559 41,365 24,341 328 92 9,871 390 20......................... 9,736 6,913 495 4,709 792 11,760 121,075 43,095 24,978 325 408 11,244 353 27......................... 10,532 5,315 520 4,729 791 12,531 120,514 43,257 25,029 254 212 10,789 386 Outside New York City 1974 Aug. 7......................... 19,995 15,217 3,653 5,753 886 19,214 371,741 109,741 86,344 5,488 1,270 10,969 349 14......................... 20,772 16,368 3,975 5,563 883 18,840 372,162 111,292 88,656 5,520 1,018 10,898 314 21......................... 20,043 17,073 4,019 5,660 887 18,662 370,485 110,151 86,768 5,241 2,285 10,822 290 19,150 14,942 4,213 6,051 911 18,900 370,171 109,013 86,673 5,289 1,387 10,753 291 1975 July 2......................... 23,955 14,266 4,055 7,279 955 25,193 381,759 120,520 94,279 6,088 1,200 12,639 394 21,571 12,207 4,211 7,254 976 24,401 379,215 117,021 92,233 5,704 1,281 12,077 391 16......................... 22,658 17,447 4,324 7,128 955 23,865 379,819 117,647 93,485 5,700 1,289 11,696 342 23......................... 20,157 17,092 4,471 6,263 945 23,735 373,444 112,671 90,201 5,615 899 10,796 315 30......................... 19,808 16,026 4,492 6,881 956 23,635 372,984 113,232 89,969 5,612 786 11,727 331 Aug. 6......................... 21,114 14,701 3,916 6,729 959 24,071 375,080 114,897 90,354 5,585 1,568 12,199 350 13......................... 21,003 14,921 4,346 6,558 952 23,869 373,570 113,838 91,578 5,281 1,065 11,037 334 20......................... 20,502 16,538 4,394 6,114 942 24,028 373,067 113,137 90,081 5,343 1,642 11,152 318 27......................... 19,973 15,580 4,525 6,251 950 24,148 372,932 113,128 90,553 5,318 1,269 11,143 328 For notes see page A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Total 6 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 1,378 5,358 6,396 217,092 57,549 116,447 24,311 7,203 10,115 2,286 6,112 23,998 ...................Aug. 7 1,116 5,247 5,806 217,996 57,419 117,362 24,249 7,201 10,220 2,268 6,010 23,334 ..............................14 1.171 4,824 5,280 218,809 57,280 118,024 24,316 7,265 10,313 2,375 5,923 24,145 ..............................21 1.172 4,861 6,233 219,453 57,079 118,853 24,266 7,332 10,240 2,632 5,866 24,333 ..............................28 1975 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 12,081 47,729 1,852 3,740 22,218 ..............................23 1,204 5,002 5,983 222,475 65,392 113,218 22,950 7,571 11,954 48,881 21 3,790 21,931 ..............................30 1,261 4,944 5,050 222,313 65,439 112,913 22,917 7,607 12,056 49,275 29 4,012 22,146 ...................Aug. 6 1,253 4,531 5,102 222,775 65,382 113,335 22,969 7,721 12,022 47,624 446 4,017 22,602 ..............................13 1,158 4,496 4,734 221,953 65,308 113,436 22,683 7,552 11,642 47,280 517 3,928 22,866 ..............................20 1,038 4,754 5,312 221,927 65,261 113,716 22,607 7,548 11,489 46,752 123 3,818 23,089 ..............................27 New York City 1974 1,121 3,949 2,741 45,012 4,991 26,421 1,983 4,481 6,213 14,085 2,098 9,184 ...................Aug. 7 896 3,977 2,410 45,448 4,986 26,950 1,888 4,412 6,221 13,230 130 2,119 8,618 ..............................14 880 3,570 2,080 45,500 4,968 26,953 1,939 4,392 6,244 12,375 2,076 9,579 ..............................21 994 3,629 3,023 45,751 4,935 27,563 1,840 4,324 6,070 11,007 2,163 9,154 ..............................28 1975 1,273 3,378 3.610 44,396 5,930 25,087 1,137 3,439 7,848 14,268 75 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 7,497 12,865 1,055 1,676 7,828 ..............................23 943 3,712 2,727 44,162 5,806 25,511 1,262 3,289 7,379 13,733 1,709 7,866 ..............................30 1,010 3,523 1,881 44,392 5,775 25,513 1,225 3.410 7,545 13,646 1,952 7,863 ...................Aug. 6 1,023 3,333 1,987 44,521 5,779 25,611 1,263 3,533 7,445 13,267 329 1,973 7,937 ............................13 957 3,228 1,602 44,157 5,752 25,615 1,190 3.411 7,316 12,670 1,857 8,140 ..............................20 834 3,514 2,239 44,243 5,774 25,838 1,156 3,367 7,253 11,687 1,897 8,246 ............................27 Outside New York City 1974 257 1,409 3,655 172,080 52,558 90,026 22,328 2,722 3,902 40,431 2,286 4,014 14,814 . Aug. 7 220 1,270 3,396 172,548 52,433 90,412 22,361 2,789 3,999 39,229 2,138 3,891 14,716 ...........14 291 1,254 3,200 173,309 52,312 91,071 22,377 2,873 4,069 37,909 2,375 3,847 14,566 ...........21 178 1,232 3,210 173,702 52,144 91,290 22,426 3,008 4,170 37,639 2,632 3,703 15,179 ...........28 1975 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 16 213 1,276 3,356 178,595 59,721 87,591 21,812 4,384 4,584 34,864 797 2,064 14,390 ,23 261 1,290 3,256 178,313 59,586 87,707 21,688 4,282 4,575 35,148 21 2,081 14,065 30 251 1,421 3,169 177,921 59,664 87,400 21,692 4,197 4,511 35,629 29 2,060 14,283 . Aug. 6 230 1,198 3,115 178,254 59,603 87,724 21,706 4,188 4,577 34,357 117 2,044 14,665 ...........13 201 1,268 3,132 177,796 59,556 87,821 21,493 4,141 4,326 34,610 517 2,071 14,726 .20 204 1,240 3,073 177,684 59,487 87,878 21,451 4,181 4,236 35,065 123 1,921 14,843 ...................................27 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS □ SEPTEMBER 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Reserves Memoranda for— Total Total Large negotiable Gross capital loans time CD’s All other large liabili­ Wednesday Total and De­ included in time time deposits12 ties of Secur­ loans invest­ mand and savings deposits11 banks Loans ities (gross) ments deposits to ad­ (gross) ad­ their justed 9 ad­ justed 10 Issued Issued Issued Issued foreign justed 9 Total to to Total to to branches IPC’s others IPC’s others Large banks— Total 1974 Aug. 7....................... 5,066 33,386 296,752 380,399 99,454 86,033 59,692 26,341 3,499 14...................... 5,069 33,356 294,907 378,337 100,928 86,916 60,628 26,288 2,910 21...................... 5,074 33,292 294,637 377,455 98,571 87,848 61,062 26,786 3,694 28...................... 5,086 33,248 298,619 381,517 100,293 88,484 61,747 26,737 3,012 1975 July 2...................... 5,713 35,456 284,614 376,814 107,114 81,363 54,059 27,304 33,867 17,771 16,096 1,429 9...................... 5,710 35,445 287,314 379,746 104,392 81,342 53,838 27,504 33,829 17,861 15,968 1,809 16...................... 5,698 35,355 282,608 375,280 104,511 80,950 53,953 26,997 34,010 17,854 16,156 3,130 23...................... 5,697 35,332 280,553 373,426 103,500 81,456 54,444 27,012 33,955 17,890 16,065 2,742 30...................... 5,737 35,351 280,762 373,309 103,863 81,251 54,308 26,943 33,608 17,831 15,777 2,377 Aug. 6...................... 5.732 35,611 281,858 374,217 101,879 80,834 53,853 26,981 33,751 17,842 15,909 1,826 1 3 5,741 35,652 279,531 372,394 102,830 81,431 54,239 27,192 34,059 17,920 16,139 2,205 20...................... 5.733 35,564 279,359 373,111 101,548 80,855 54,262 26,593 33.386 17,889 15,497 2,848 2 7 5,746 35,536 278,489 372,241 102,467 80,989 54.561 26,428 33.387 17,786 15,601 2,617 New York City 1974 Aug. 7...................... 1,390 8,749 72,683 87,315 21,947 28,767 18,836 9,931 1 4 1,392 8,747 71,644 86,412 22,324 29,146 19,406 9,740 1,798 21...................... 1,389 8,711 71,200 86,214 21.570 29,333 19,332 10,001 2,639 2 8 1,399 8,694 73,141 88,045 22.570 29,519 19,801 9,718 2,131 1975 July 2...................... 1,643 9,410 70,637 86.969 24,388 27,697 17,544 10,153 8,059 4.869 3,190 712 9...................... 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...................... 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...................... 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 Aug. 6..................... 1,690 9,461 69,294 84,788 21,863 28,396 18,275 10,121 7,792 4,822 2,970 1,066 13..................... 1.700 9,467 67,955 83,591 22,097 28,603 18,408 10,195 7,773 4,853 2,920 1,014 20...................... 1.701 9,455 67,780 84,055 21,707 28,375 18,503 9,872 7,645 4,756 2,889 1 ,817 2 7 1,718 9,466 67,149 83,178 21,724 28,527 18,757 9,770 7,623 4,767 2,856 1,536 Outside New York City 1974 Aug. 7...................... 3.676 24,637 224,069 293,084 77,507 57,266 40,856 16,410 3,499 14...................... 3.677 24,609 223,263 291,925 78,604 57,770 41,222 16,548 1,112 21...................... 3,685 24,581 223,437 291,241 77,001 58,515 41,730 16,785 1,055 2 8 3,687 24,554 225,478 293,472 77,723 58,965 41,946 17,019 881 1975 July 2...................... 4,070 26,046 213.977 289,845 82,726 53,666 36,515 17,151 25, i 12,902 12,906 717 9...................... 4.060 26,049 215.978 292,279 82,092 53,423 36,047 17,376 25,762 12.991 12,771 757 16...................... 4,047 25,953 213,301 289,817 82,004 52,948 35,859 17,089 25,992 12.992 13,000 899 23...................... 4,044 25,950 211,914 288,712 80,819 53,083 35,982 17,101 26,135 13,086 13,049 841 30....:........... 4.061 25,994 211,904 288,339 80,911 53,080 36,035 17,045 25,901 13,054 12,847 987 Aug. 6.................... 4,042 26,150 212,564 289,429 80,016 52,438 35,578 16,860 25,959 13,020 12,939 760 13.................... 4,041 26,185 211,576 288,803 80,733 52,828 35,831 16,997 26,286 13,067 13,219 1,191 20.................... 4,032 26,109 211,579 289,056 79,841 52,480 35,759 16,721 25,741 13,133 12,608 1,031 27.................... 4,028 26,070 211 ,340 289,063 80,743 52,462 35,804 16,658 25,764 13,019 12,745 1 ,081 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

SEPTEMBER 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 Aug. Aug. Aug. Aug. July 1st 2nd 27 20 13 6 30 Aug. July June IV half half Durable goods manufacturing: Primary metals.................................. 1,993 2,001 2,002 1,986 1,985 -38 1 -23 41 77 18 140 Machinery.......................................... 6,856 6,884 6,949 7,023 7,080 -224 -347 -485 -642 -672 -127 -1,314 222 Transportation equipment.............. 3,296 3,336 3,333 3,386 3,507 -211 -3 -77 -296 -6 365 -302 705 Other fabricated metal products.. 2,438 2,466 2,487 2,484 2,495 -57 -228 -24 -211 23 -178 -18 75 Other durable goods........................ 3,986 4,001 4,042 4,051 4,075 -89 -66 -152 -316 -402 -265 -71 247 Nondurable goods manufacturing: Food, liquor, and tobacco............. 3,208 3,192 3,118 3,086 3,071 137 -241 -238 -519 -1,090 484 -1,609 984 Textiles, apparel, and leather........... 3,240 3,214 3,231 3,252 3,224 16 1 -18 -148 -139 -725 -287 -618 Petroleum refining............................ 2.530 2,492 2,517 2,551 2,523 7 45 90 283 -55 473 228 967 Chemicals and rubber..................... 2,776 2,826 2,850 2,843 2,853 -77 -269 -122 -321 61 -55 -260 256 Other nondurable goods................. 2,045 2,056 2,104 2,145 2,165 -120 -58 57 10 -293 -135 -283 23 Mining, including crude petroleum and natural gas............................. 5,01 5,041 4,977 5,073 5,054 -36 175 83 109 -267 556 -158 846 Trade: Commodity dealers.................. 1,115 1,039 1,122 1,139 1.117 -2 12 -54 -328 -644 703 -972 508 Other wholesale........................ 5,604 5,666 5,668 5,654 5,638 -34 18 -107 -534 -574 349 -1,108 484 Retail........................................... 6,103 6,095 6,074 6,049 6.117 -14 -192 -153 -212 -186 -246 -398 -465 Transportation....................................... 5,974 5,970 5,964 5,969 6,021 -47 -42 18 -142 -181 261 -323 283 Communication...................................... 2,097 2,125 2,103 2,115 2,129 -32 -15 -71 17 -372 90 -355 -2 Other public utilities.............................. 6,945 6,945 7,013 7,076 7,091 -146 -104 -75 -404 -1,019 609 -1,423 1 ,697 Construction............................................ 5.530 5,566 5,585 5,554 5,559 -29 -2 -25 -77 -545 -195 -622 36 Services..................................................... 10,571 10,660 10,688 10,620 10,688 -117 -146 -7 -388 -732 171 -1,120 304 All other domestic loans....................... 9,789 9,776 9,728 9,845 9,823 -34 63 146 -65 -307 387 -372 744 Bankers acceptances............................. 2,030 2,089 2,169 2,154 2,287 -257 27 150 28 571 309 599 -56 Foreign commercial and industrial loans................................................... 4,928 4,905 4,911 4,914 4,891 37 360 223 233 61 -239 294 -447 Total classified loans.............................. 98,072 98,345 98,635 98,969 99,393 -1,321 -1,050 -823 -3,946 -6,727 2,669 -10,673 6,933 Comm, paper included in total clas­ sified loans1.......................................... 150 Total commercial and industrial loans of large commercial banks........... 119,090 119,403 119,714120,052 120,611 -1,521 -1,274 -3,845 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 Aug. July June May Apr. Mar. Feb. Jan. Dec. 1st 27 30 25 28 30 26 26 29 31 II I IV III half Durable goods manufactur­ ing: Primary metals..................... 1,286 1,269 1,288 1,280 1,323 1,284 1,237 1,249 1,210 4 74 77 28 78 Machinery............................ 3,825 3,864 3,977 4,269 4,302 4,071 4,117 4,138 4,145 -94 -74 249 610 -168 Transportation equipment. 1,722 1,725 1,740 1,726 1,705 1,672 1,712 1,737 1,673 68 -1 138 125 67 Other fabricated metal products............................ 1,228 1,196 1,222 1,245 1,280 1,312 1,323 1,243 1,197 -90 115 131 112 25 Other durable goods........... 2,042 2,058 2,090 2,122 2,210 2,251 2,256 2,288 2,391 -161 -140 123 161 -301 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,461 1,440 1,514 1,616 1,571 1,561 1,614 1,703 1,763 -47 -202 114 78 -249 Textiles, apparel, and leather................................ 1,077 1,116 1,095 1,075 1,091 1,158 1,083 1,124 1,145 -63 13 -6 23 -50 Petroleum refining............... 1,889 1,828 1,709 1,611 1,617 1,483 1,458 1,542 1,518 226 -35 421 134 191 Chemicals and rubber........ 1,645 1,678 1,762 1,784 1,814 1,846 1,812 1,839 1,878 -84 -32 100 41 -116 Other nondurable goods.. 1,023 1,085 1,143 1,114 1,126 1,130 1,119 1,221 1,235 13 -105 31 33 -92 Mining, including crude pe­ troleum and natural gas. 3,754 3,801 3,734 3,646 3,626 3,537 3,446 3,523 3,701 197 -164 362 209 33 Trade: Commodity dealers.. 148 152 148 140 142 150 153 169 155 -2 -5 16 -2 -7 Other wholesale......... 1,371 1,344 1,329 1,344 1,387 1,450 1,420 1,472 1,492 -121 -42 43 43 -163 Retail............................ 2,139 2,111 2,136 2,143 2,192 2,283 2,298 2,369 2,594 -147 -311 67 99 -458 Transportation......................... 4,405 4,399 4,425 4,424 4,492 4,524 4,505 4,455 4,550 -99 -26 201 -76 -125 Communication....................... 1,149 1,136 1,133 1,159 1,148 1,135 1,125 1,158 1,082 -2 53 53 -1 51 Other public utilities............... 3,902 4,018 4,045 4,047 4,017 4,034 3,870 3,885 3,963 11 71 291 229 82 Construction............................ 2,367 2,360 2,314 2,291 2,272 2,197 2,191 2,224 2,294 117 -97 22 142 20 Services...................................... 5,010 5,155 5,140 5,246 5,352 5,430 5,370 5,320 5,532 -290 -102 182 77 -392 All other domestic loans .... 3,257 3,232 3,258 3,186 3,210 3,082 3,144 3,079 3,224 176 -142 102 105 34 Foreign commercial and in­ dustrial loans................... 2,695 2,676 2,594 2,547 2,596 2,528 2,544 2,524 2,457 66 71 56 -147 137 Total loans................................ 47,395 47,643 47,796 48,015 48,473 48,118 47,797 48,262 49,199 -322 -1,081 2,773 2,023 -1,403 1 New item to be reported as of the last Wednesday of each month. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Note.—About 160 weekly reporting banks are included in this series; Commercial and industrial “term” loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by ail weeklv 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 □ SEPTEMBER 1975 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec......................................................................................... 17.3 92.7 53.6 1.3 10.3 175.1 1971—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 Sept........................................................................................ 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar........................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 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—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 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 July*...................................................................................... 15.0 65.3 29.8 2.2 6.5 118.7 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, June 30, Dec, 31 Apr. 16, Class of Dec. 31, June 30, Dec, 31, Apr. 16, bank 1973 1974 1974 1975 bank 1973 1974 1974 1975 All commercial............................ 507 460 389 All member—Cont. Insured...................................... 503 457 387 363 Other large banks 1............ 58 63 69 73 National member................... 288 265 236 224 All other member *............. 294 267 206 188 State member........................... 64 65 39 37 All nonmember........................ 155 130 115 102 All member.................................. 352 330 275 261 152 127 112 102 Noninsured........................... 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-l 4; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-18-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

SEPTEMBER 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—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 11........................... 4,628 2,849 198 1,581 18........................... 4,631 2,849 198 1,584 25........................... 4,667 2,895 196 1,576 July 2........................... 4,648 2,907 196 1,545 9........................... 4,599 2,827 192 1,580 1 To bank’s own foreign branches, nonconsolidated non­ 16........................... 4,484 2,755 189 1,540 bank affiliates of the bank, the bank’s holding company (if 23........................... 4,470 2,734 188 1 ,548 not a bank), and nonconsolidated nonbank subsidiaries of 30........................... 4,500 2,763 186 1 ,551 the holding company. Note.—Series changed on Aug. 28, 1974. For a comparison Aug. 6........................... 4,470 2,758 195 1,517 of the old and new data for that date, see p. 741 of the Oct. 13........................... 4,510 2,794 195 1 ,521 1974 Bulletin. Revised figures received since Oct. 1974 20........................... 4,463 2,764 195 1,504 that affect that comparison are shown in note 2 to this table 27........................... 4,479 2,757 198 1,524 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di- Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed3 placed Total Own Bills Own eign United United bills bought acct. corr.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 1,889 1,153 2,408 1970............ 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............ 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972............ 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973............ 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974-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 rl,756 rl1,398 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 rl,109 r12,150 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 r12,718 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 r325 M2,398 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 r263 r13,029 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 r235 r\3,034 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 June.. 48,851 5,604 31,202 12,045 1,608 7,316 17,740 4,774 4,224 550 682 319 11,965 3,466 4,080 10,193 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 □ SEPTEMBER 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate date Rate 1974—Apr. 11. 9%—9«/io- 1974—June 3. lll^B-118/lfr- 1974—Oct. 28. 1034-11- 1975—Feb. 3............ 8%-9-9%b- 10b 11% 11%«- 9%-934 15. lOm-Who- 7. 11%-11%b- 11% 4............. 8%-9-9%b 10% ll«/io 10............ 8%_9b 19. lO-lOi/io- 10. !!%■ Nov. 4, 1034-1 1b- 18............ 8%-8%b-9 10%b 21. 11%-11%B 11% 24............ 8%b-8% 24. 11%B-11% 11 10%-1034- Apr. 23. 10%b-10Vio 11b Mar. 3............ 8%-8%b 24. 10%b- 25. n^B-im. 14 10%-1034b 5............ 8 %-8% lCM/io- 118/10 11 6............ 7 34-8% B- 25. 10 1 % 0 - % 10</io- 26. 1 , 1 l % l8 - / 1 io 1 %B- 18, 10- 10 10 % % B - 10............ 7% 8% -8b-8% 10V4- 28. ll%B-ll«/l0 19, 10-10%- 17............ 734-8b 26. 104/10- 10%- 18............ 7%-7%b-8 10%b- July 3. 11%b-118/io- 10% B 24............ 7%b-7%-8 1034-11 12 25, 10-10%- 25............ 7%b-7% 30. 10%b- 5, 118/10—1 2b 10%B 31............ 7%-7% B- 106/10- 9, 12b-12% 7% 10%-11 23, 103/4-12b- Dec. 2, 934-10-10% 12% —10%B 20............ 7%b-71/2 May 2. 10%-10«/u>- 26............ 7-7% b-7% 1034 B-ll Aug. 20, 10%-12b 1975—Jan. 9 91/2-10- 3. 106/10-10 34 ■ 1 0% B— June 9............ 6%-7b-7% 6. 10 - 6 1 /i 1 o -10%- Sept. 26, 103 11 4 % -11 — 1 1 , 2 4 b - 13, 91/2 1 - 0 9 % 3 4-10- 18............ 7-7% b-7% 11a 1 0% B 28............ 7%-7%b 7. 11b Oct. 7. 1034-111/2- 15 9%-9%- 10. 1 1-1 1 V^B 1134.-12 1Ob-IO% 8............ 7%-7%b- 1 1 3 7. . l 1 l 1 % % B - - 1 H 1- V V l i O o 15, 103/4-11%- 2 2 0 8 9 9 % %b -9 -9 % % b - - 1 1 0 0 12............ m -m - -11%B 11%- 29 9%b-9% 7%b 20, HViB-11% 21, 1034-11%- !!%■ 11% Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective Apr. 16, 1973, with the adoption of a two-tier or “dual prime rate keyed to money market variables, b denotes the predominant prime rate,” this table shows only the “large-business prime rate,” which is the rate quoted by a majerity 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. May Feb. May Feb. 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 Short-term 35 centers......................................... 8.16 9.94 9.57 10.94 9.10 10.73 8.52 10.25 8.18 9.93 7.90 9.73 New York City.......................... 7.88 9.61 9.27 10.82 9.02 10.60 8.55 10.14 7.86 9.74 7.76 9.50 7 Other Northeast..................... 8.37 10.31 10.00 12.07 9.34 11.31 8.63 10.64 8.51 10.09 7.95 9.96 8 North Central......................... 8.00 9.87 9.11 10.55 8.82 10.49 8.32 10.09 7.91 9.85 7.82 9.74 7 Southeast.................................. 8.70 10.24 9.86 10.59 9.40 10.52 8.97 10.21 8.67 10.22 8.15 10.12 8 Southwest................................. 8.34 10.01 9.35 10.36 8.89 10.47 8.32 10.11 8.24 9.83 8.15 9.84 4 West Coast............................... 8.33 9.99 9.72 11.23 9.23 10.75 8.58 10.22 8.23 10.05 8.18 9.84 Revolving credit 35 centers......................................... 7.95 9.20 9.59 11.03 8.91 10.56 8.58 10.14 8.23 10.18 7.84 8.98 New York City.......................... 7.92 7.84 9.04 10.98 8.94 10.59 8.37 9.98 8.16 9.87 7.88 7.61 7 Other Northeast..................... 7.92 10.83 10.45 12.05 8.66 10.60 8.21 9.97 7.56 10.98 7.91 10.90 8 North Central......................... 8.20 10.32 9.78 11.77 10.01 11.14 9.24 10.97 8.12 10.24 8.03 10.22 7 Southeast.................................. 8.41 9.77 9.90 10.61 8.61 10.41 8.68 10.35 7.97 9.00 8.40 9.76 8 Southwest................................. 8.40 10.54 9.44 11 .61 8.66 11.18 8.51 10.57 8.47 10.75 8.29 10.37 4 West Coast.............................. 7.84 9.52 8.91 10.67 8.54 10.13 8.44 9.77 8.40 10.17 7.69 9.40 Long-term 35 centers......................................... 8.22 10.26 9.94 10.54 9.36 10.55 8.83 10.57 8.47 10.16 8.05 10.21 New York City.......................... 8.38 9.62 9.92 9.27 9.50 10.82 8.69 10.46 9.02 9.78 8.31 9.53 7 Other Northeast..................... 8.53 10.48 9.99 10.99 9.76 10.77 9.41 10.51 7.96 10.20 8.28 10.49 8 North Central......................... 7.22 11 .33 9.06 10.32 8.68 10.25 8.64 10.17 8.09 9.45 6.80 11.81 7 Southeast.................................. 8.91 10.42 10.94 9.67 9.14 10.47 7.93 11.11 9.47 11.95 9.50 9.16 8 Southwest................................. 8.47 9.87 10.74 11.99 9.86 10.12 8.37 10.46 8.68 10.09 8.28 9.60 4 West Coast.............................. 8.71 10.07 9.15 8.36 9.20 10.77 9.06 11.28 8.67 10.94 8.66 9.78 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ INTEREST RATES A 27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills 6 6-month bills6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1-year issues 7 days months months2 on new yield on new yield bill (mar­ Other7 issue issue ket yield) 6 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1974. 10.05 9.87 8.62 9.92 10.51 7.886 7.84 7.926 7.95 7.71 8.25 7.81 1974—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 Junfe. 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 c6.01 6.40 6.10 6.164 6.13 6.492 6.50 6.64 7.07 7.72 Aug.. 6.59 6.70 6.39 6.74 6.14 6.463 6.44 6.940 6.94 7.16 7.55 8.12 Week ending— 1975—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 c6.48 6.25 6.318 6.28 6.719 6.69 6.86 7.35 7.86 9., 6.50 6.63 6.25 6.66 6.09 6.456 6.42 6.864 6.88 7.11 7.50 8.05 16., 6.63 6.68 6.33 6.75 6.08 6.349 6.42 6.809 6.93 7.17 7.58 8.13 23., 6.63 6.75 6.50 6.79 6.15 6.452 6.46 7.000 7.00 7.26 7.63 8.20 30., 6.63 6.75 6.50 6.83 6.23 6.593 6.49 7.085 6.98 7.16 7.54 8.12 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 □ SEPTEMBER 1975 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i States (long­ Re­ Aaa Baa Indus­ Rail­ Public term) Total1 Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970..................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971..................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972..................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 .................... 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974.................... 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1974—Aug......... 7.33 6.70 6.38 7.10 10.07 10.19 9.36 9.00 9.77 9.16 9.30 9.70 8.61 4.90 Sept......... 7.30 6.77 6.49 7.18 10.38 10.30 9.67 9.24 10.12 9.44 9.46 10.11 8.93 5.45 14.35 Oct........... 7.22 6.56 6.21 6.99 10.16 10.23 9.80 9.27 10.41 9.53 9.64 10.31 8.78 5.38 Nov......... 6.93 6.54 6.06 7.01 9.21 9.34 9.60 8.89 10.50 9.30 9.59 10.14 8.60 5.13 Dec.......... 6.78 7.04 6.65 7.50 9.53 9.56 9.56 8.89 10.55 9.23 9.59 10.02 8.78 5.43 12.97 1975—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 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 Aug.......... 7.06 7.12 6.40 7.71 9.46 9.49 9.51 8.95 10.35 9.29 9.41 9.93 8.41 4.36 Week ending— 1975—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 9. 7.00 7.11 6.40 7.70 9.44 9.51 9.48 8.93 10.31 9.28 9.38 9.88 8.40 4.30 16. 7.01 7.11 6.40 7.70 9.43 9.49 9.51 8.95 10.35 9.29 9.40 9.93 8.39 4.31 23. 7.14 7.12 6.40 7.72 9.53 9.54 9.52 8.96 10.36 9.31 9.42 9.96 8.38 4.44 30. 7.12 7.12 6.40 7.72 9.49 9.50 9.53 8.96 10.37 9.31 9.44 9.96 8.47 4.38 Number of 15 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

SEPTEMBER 1975 □ SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer- trading in Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43=10) (Dec. 31, 1965 = 50) change total index ( G t l 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 i u al s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e 1 ( 9 A 1 3 7 0 u 1 0 3 , g ) = . NYSE AMEX 1970............................ 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971............................ 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 15,381 4,234 1972............................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973............................ 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1974............................ 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1974—Aug................. 54.95 71.6 57.6 76.03 85.51 35.06 34.00 39.86 44.19 29.41 26.72 40.11 74.97 12,732 1,416 Sept................ 55.13 71.0 56.2 68.12 76.54 31.55 30.93 35.69 39.29 25.86 24.94 36.42 65.70 13,998 1,808 Oct.................. 55.69 72.7 55.9 69.44 77.57 33.70 33.80 36.62 39.81 27.26 26.76 39.28 66.78 16,396 1,880 Nov................ 57.80 72.6 56.3 71.74 80.17 35.95 34.45 37.98 41.24 28.40 27.60 41.89 63.72 14,341 1,823 Dec................. 58.96 68.6 56.1 67.07 74.80 34.81 32.85 35.41 38.32 26.02 26.18 39.27 59.88 15,007 2,359 1975—Jan.................. 59.70 70.9 56.4 72.56 80.50 37.31 38.19 38.56 41.29 28.12 29.55 44.85 68.31 19,661 2,117 Feb................. 60.27 74.1 56.6 80.10 89.29 37.80 40.37 42.48 46.00 30.21 31.31 47.59 76.08 22,311 2,545 Mar................ 59.33 70.9 56.2 83.78 93.90 38.35 39.55 44.35 48.63 31.62 31.04 47.83 79.15 22,680 2,665 Apr................. 57.05 69.5 55.8 84.72 95.27 38.55 38.19 44.91 49.74 31.70 30.01 47.35 82.03 20,334 2,302 May............... 57.40 69.6 56.6 90.10 101.05 38.92 39.69 47.76 53.22 32.28 31.02 49.97 86.94 21,785 2,521 June............... 58.33 69.8 56.7 92.40 103.68 38.97 43.65 49.21 54.61 30.79 32.78 52.20 90.57 17,052 2,743 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 Aug................. 56.84 68.3 55.6 85.71 96.21 35.13 41.04 45.71 50.71 30.14 31.02 46.55 85.74 13,404 1,476 Week ending— 1975—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 9 57.26 67.7 55.8 86.39 96.94 35.26 41.15 46.22 51.09 30.42 31 .52 47.82 87.07 13,682 1,636 16 57.22 67.7 55.6 86.32 96.93 35.23 40.72 46.03 51.04 30.44 31.31 47.07 86.07 12,386 1,388 23 56.30 67.9 55.5 84.34 94.67 35.01 39.89 44.91 49.85 29.78 30.51 45.17 84.13 14,818 1,596 30 56.45 70.0 55.6 85.35 95.81 34.88 40.38 45.44 50.56 29.70 30.54 45.60 84.98 12,744 1,316 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—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 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......................................... r5,014 4,166 848 4,030 806 134 29 2 13 1,919 410 1,446 Feb........................................ r5,169 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...................................... r5,160 r5,010 146 4 519 1,790 July....................................... 5,466 5,320 143 3 557 1,710 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 □ SEPTEMBER 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts End of l ( d i m o e n b il s t ­ End of period c N re e d t it in debit status b T al o a t n a c l e period d o o f l­ 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 o ( f m d i o l l li l o ar n s s ) lars) 1 40.2 36.5 23.2 6,695 1974—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 45.9 43.1 11.0 7,875 June. r5,0l0 7.4 9.9 18.3 32.7 20.4 11.4 July........................ 45.6 41.1 13.1 7,772 July.. 5,320 6.0 8.3 13.9 23.6 30.4 17.9 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 Total General classified by maturity End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash Other lia a t b i n e i d s li ­ De i p ts os­ l O ia t t i b e h i s e li r ­ r c e o s a u e c n r ­ v ts e (in months) govt. other1 general reserve 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 4,539 197 3 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 3,261 197 4 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—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 June., 75,763 4,492 3,744 1,240 26,470 2,088 2,954 116,751 105,993 2,594 8,164 973 510 195 565 2,243 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

SEPTEMBER 1975 □ SAVINGS INSTITUTIONS A 31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o se ta 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--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 May................................ 275,816 12,464 4,678 3,739 4,047 127,847 100,478 27,369 87,882 8,843 23,570 15,210 i Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ End of period M ga o ge rt s ­ I s n m e v c e e u n s r t t ­ ­ Cash Other l a ia s T b s o e il t t i s a t — i l e s S c a a v p i i n ta g l s w N or e t t h2 m ro B o w n o e e r­ y d 3 p L ro o i c 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 t 4 n s f g ities 1 1971..................................... 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972..................................... 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735................................... 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974..................................... 249,306 23,235 23,075 295,616 242,914 18,435 24,824 3,205 6,238 7,454 1974—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........................ 261,336 30,880 25,786 318,003 268,978 18,992 18,881 4,446 6,706 12,363 July*5....................... 264,449 32,040 26,297 322,786 272,040 19,271 18,726 4,766 7,983 12,637 1 Excludes stock of the Federal Home Loan Bank Board. Compensating in other assets. The effect of this change was to reduce the mortgage changes have been made in “Other” assets. total by about $0.6 billion. 2 Includes net undistributed income, which is accrued by most, but not Also, GNMA-guaranteed, mortgage-backed securities of the pass­ all, associations. through type, previously included in “Cash” and “Investment securities” 3 Advances from FHLBB and other borrowing. are included in “Other” assets. These amounted to about $2.4 billion at 4 Data comparable with those shown for mutual savings banks (on the end of 1972. opposite page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. Note.—FHLBB data; figures are estimates for all savings and loan 5 Beginning 1973, participation certificates guaranteed by the Federal assns. in the United States. Data are based on monthly reports of insured Home Loan Mortgage Corporation, loans and notes insured by the assns. and annual reports of noninsured assns. Data for current and Farmers Home Administration, and certain other Govt.-insured mortgage- preceding year are preliminary even when revised. type investments, previously included in mortgage loans, are included Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 FEDERAL FINANCE □ SEPTEMBER 1975 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt, Trea­ financ­ deficit debt Agency accounts 1 Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net3 ties ties notes2 ing Special Other balance issues Fiscal year: 197 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 -2,063 197 5 280,997 324,601 -43,604 58,953 -1,069 9,252 -1,825 50,853 -1,570 1,891 -5,794 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. 139,807 153,399 -13,591 18,429 -646 2,840 150 14,794 -3,228 248 -4,183 1975—Jan.-June, 141,190 171,202 -30,012 40,524 -423 6,412 -1,975 36,059 1,658 1,643 2,084 Month: 1974—Jul y r20,943 r24,269 -3,327 1,109 r —115 -858 198 rl,654 -2,705 r —383 -1,415 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........ 31,817 30,296 1,521 5,030 -55 5,271 -864 567 -949 56 -1,847 July.......... 20,197 31,249 -11,052 5,051 -23 -2,463 -310 7,800 -3,390 -1,373 -1,511 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period F.R. T an a d x Other Public Agency G In o v v e t, s t a m cc e o n u ts n t o s f 1 Less: Equals: s c p o G o r n o p s v s o . t — . r - e d Banks ac l c o o a u n nts d ta e r p i o e s s i 4 ­ Total sec d u e r b it t ies securities S n p o e t c e i s a 2 l Total pr N iv o a w te ^ Special 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 65,411 197 5 5,773 1,473 343 7,589 533,188 10,943 123,033 24,192 (6) 396,906 76,092 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—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—Ja n 3,541 2,115 220 5,876 494,139 11,343 115,588 25,380 364,514 76,921 Feb___ 2,884 410 220 3,514 499,710 11,037 116,812 24,886 369,049 75,964 Mar.. . 4,269 2,140 220 6,629 509,659 11,042 115,596 24,807 380,298 76,392 Apr__ 8,363 5,411 521 14,295 516,740 11,004 115.606 24,355 387,783 77,124 May.,. 7,036 981 521 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 76,092 July... 2,349 1,211 9 3,569 538,240 10,920 120.606 22,743 404.707 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

SEPTEMBER 1975 □ FEDERAL FINANCE A 33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus­ Estate Misc. Elec­ Non­ Gross contribution2 Un- Other taxes toms and re­ With- tion with­ Re­ Net re­ Re­ empl. net Net gift ceipts4 held Cam­ held funds total ceipts funds insur. re­ total paign Pay­ Self- ceipts3 Fund1 roll empl. taxes Fiscal year: 197 2 208,649 83,200 25,67914,14394,737 34,926 2,76044,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,22598,093 27,01721,866 103,246 39,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 197 4 264,932 112,064 2830,81223,952 118,952 41,744 3.125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 1975 r......................... 280,997 122,071 34,29734,013 122,: 45,747 5.12571,789 3,417 6,770 4,466 86,441 16,551 3,676 4,611 6,711 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.-June. .. 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 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,341 1975—Jan.-June.. . 141,19060,694 27,19832,997 54,92627,500 3,109 37,371 3,163 3,856 2,27946,667 7,790 1,718 2,327 3,370 Month: 1974—Jul y r20,943 10,231 957 378 ’■10,810 1,796 310 5,005 418 358 5,781 1,517 325 418 r606 Aug............... 23,620 10,223 491 229 10,485 1,084 256 7,813 1,363 368 9,544 1,415 355 453 540 Sept............... 28,377 9,754 4,323 13013,947 6,082 435 5,428 240 62 389 6,119 1,465 305 352 543 Oct................. 19,633 10,106 561 78 10,590 1,717 511 4,558 221 363 5,142 1,401 347 370 578 Nov................ 22,292 10,638 305 111 10,832 1,111 314 6,633 762 353 7,748 1,474 319 350 773 Dec................ 24,946 10,428 461 90 10,799 6,458 190 4,982 14 89 356 5,441 1,489 307 341 301 1975—Ja...................n 25,020 10,252 5,366 132 15,487 1,745 557 4,802 223 245 402 5,673 1,351 307 385 629 Feb................ 19,975 10,957 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 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 12,766 6,258 16,065 5,819 726 5,438 1,743 557 388 8,126 1,166 286 317 399 May............... 12,793 10,300 81912,749 -1,630 1,192 18 7,689 340 2,209 350 10,588 1,373 270 459 559 June.............. 31,817 10,027 4,540 1,444 13,123 10,241 664 5,552 373 92 413 6,431 1,464 301 412 508 July............... 20,197 9,205 908 498 9,615 1,838 471 5,309 444 374 6,128 1,514 313 503 757 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. 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. opment serv. and ance ceipts 6 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 11,600 106,505 13,386 28,072 5,789 6,746 -16,652 197 5 324,601 88,238 4,198 4.154 1,991 7,921 15,566 4,410 15,110 136,333 16,595 31,019 6,464 6,700 -14,098 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 Monfh: 1975—Mar. 27,986 7,435 503 379 347 723 1,415 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 30,296 7,854 557 256 179 788 1,289 453 1,684 14,158 1,412 2,521 759 -14 -1,601 July. 31,249 7,307 531 476 270 821 2,256 402 1,237 13,092 1,367 2,637 322 1,625 -1,094 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 o SEPTEMBER 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) Total End of period p g u r b o l s i s c Marketable Con­ Nonmarketable i S s p su e e c s ia 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n l r e d t­ s 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—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 Aug. 547.7 423.5 331.1 138.1 155.2 37.8 2.3 90.1 21.6 66.6 123.3 1 Includes non-interest-bearing debt (of which $623 million on Aug. 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 u n .S v c d s t i . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t ts e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t O i m o n r t v i s h s e c e s 2 . r ­ funds bonds securities 1968—Dec................. 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec.................. 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec.................. 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................. 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................. 469.9 129.6 78.5 2bl.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—June............... 475.1 138.2 80.5 256.4 53.2 2.6 5.9 10.8 28.3 61.9 18.8 57.7 17.3 July................. 475.3 137.5 78.1 259.7 53.9 2.6 5.7 11.3 28.8 62.2 19.4 56.9 18.8 Aug................. 481.8 141.6 81.1 259.0 53.0 2.6 5.7 11.0 29.2 62.3 20.3 56.0 19.0 Sept................. 481.5 140.6 81.0 259.8 52.9 2.5 5.7 10.5 29.3 62.5 20.8 56.0 19.5 Oct.................. 480.2 138.4 79.4 262.5 53.5 2.5 5.9 11.2 28.8 62.8 21.0 56.6 20.3 Nov................. 485.4 139.0 81.0 265.3 54.5 2.5 5.9 11.0 28.7 63.2 21.1 58.3 20.1 Dec................. 492.7 141.2 80.5 271.0 56.5 2.5 6.1 11.0 29.2 63.4 21.5 58.4 22.4 1975—Jan.................. 494.1 139.0 81.3 273.8 54.5 2.6 6.2 11.3 30.0 63.7 21.6 61.5 22.3 Feb.................. 499.7 139.8 81.1 278.9 56.9 2.7 6.2 11.4 30.5 64.0 21.3 64.6 21.3 Mar................. 509.7 138.5 81.4 289.8 62.0 2.9 6.6 12.0 29.7 64.4 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 r67.7 3.4 6.9 '13.7 r29.8 65.1 r21.5 r66.8 r26.8 June............... 533.2 145.3 84.7 303.2 69.2 3.5 7.1 13.2 29.6 65.5 21.6 66.0 27.4 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

SEPTEMBER 1975 □ U.S. GOVERNMENT SECURITIES A 35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r r s Total Bills Other All holders: 1972—Dec. 31............................................................. 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31............................................................. 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Dec. 31............................................................. 282,891 148,086 119,747 28,339 85,311 27,897 14,833 6,764 1975—June 30............................................................. 315,606 163,891 128,569 35,322 101,973 26,830 14,509 8,403 July 31............................................................. 323,701 168,767 133,445 35,322 105,271 26,825 14,466 8,373 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—June 30..................................................... 20,475 2,317 479 1,838 7,626 4,309 4,233 1,990 July 31.............................................. 20,188 2,171 384 1,787 7,532 4,263 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—June 30..................................................... 84,749 45,953 37,239 8,714 28,440 7,137 1,419 1,801 July 31..................................................... 81,883 43,184 34,475 8,709 28,366 7,137 1,419 1,777 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—June 30..................................................... 210,382 115,621 90,851 24,770 65,907 15,384 8,857 4,612 July 31..................................................... 221,630 123,412 98,586 24,826 69,373 15,425 8,814 4,606 Commercial banks: 1972—Dec. 31............................................ 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Dec. Jl............................................ 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—June 30............................................ 53,335 19,643 9,241 10,402 28,415 4,394 639 244 July 31............................................ 55,517 20,735 10,352 10,383 29,618 4,294 622 249 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—June 30............................................ 2,435 519 212 307 1,150 406 243 116 July 31............................................. 2,606 547 239 308 1,294 422 242 100 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—June 30............................................ 5,542 762 421 341 1,549 1,707 1,170 354 July 31............................................ 5,812 826 479 347 1,677 1 ,777 1,166 366 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—June 30............................................ 5,136 2,871 2,010 861 1,969 159 89 48 July 31............................................ 6,911 4,072 3,216 856 2,528 223 64 23 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—June 30............................................ 2,212 569 285 284 1,239 265 114 25 July 31............................................. 2,536 795 495 300 1,343 269 105 24 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—June 30............................................ 8,022 4,290 3,466 824 1,700 717 838 476 July 31............................................ 9,169 5,317 4,477 840 1,769 725 845 514 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—June 30............................................ 133,700 86,967 75,216 11,751 29,885 7,735 5,764 3,348 July 31............................................ 139,079 91,119 79,329 11,790 31,144 7,715 5,770 3,332 Note.—Direct public issues only. Based on Treasury Survey of banks, and 732 insurance companies combined, each about 90 per cent; Ownership. (2) 457 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about SO per cent; and (3) S02 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) 5,556 commercial banks, 473 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 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 other i dealers brokers banks 1974—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 r857 Sept................................. '4,118 3,327 472 265 50 683 1,351 1,022 1,058 rl,228 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 July................................. 4,675 3,301 1,131 172 71 669 1,294 1,100 1,613 778 Week ending— 1975—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 Aug. 6......................... 5,525 3,273 1,257 744 251 827 1,612 1,138 1,949 517 13......................... 4,534 3,072 913 422 128 567 1,332 1,015 1,620 668 20......................... 4,687 2,978 1,419 206 84 683 1,113 1,144 1,747 1,155 27......................... 6,225 4,223 1,730 192 80 903 1,601 1,499 2,222 893 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t a A ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i y . ­ Period sou A r l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1974—July.................. 254 219 -52 85 3 908 1974—July............. 1,710 6 596 216 892 Aug.................. 2,432 2,361 215 337 66 1,041 Aug............. 4,138 988 1,248 54& 1,354 Sept................. 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 4,621 1,194 1,003 571 1,853 Nov................. 4,513 2,999 728 618 169 1,531 Nov............. 5,626 1,466 1,245 561 2,355 Dec.................. 4,831 3,100 975 559 197 1,803 6,904 2,061 1,619 691 2,534 1975—Jan................... 4,634 2,689 1,236 600 113 1,578 6,185 1,455 1,277 864 2,590 Feb.................. 5,588 3,658 1,180 536 213 1,469 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 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 July................. 5,736 4,978 775 47 -64 626 July............. 6,594 1,365 1,435 929 2,865 Week ending— Week ending— 1975—June 4......... 6,268 5,215 852 159 41 884 1975—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 July 2......... 6,195 4,917 1,187 148 -57 682 July 2. .. 6,819 1,352 1,221 742 3,504 9......... 5,701 4,841 812 92 -44 657 9. .. 6,454 1,185 1,573 855 2,840 16......... 5,773 5,184 610 37 -59 523 16... 7,002 1,597 1,667 954 2,784 23......... 5,753 5,002 834 -3 -81 602 23... 6,929 1,497 1,568 995 2,869 20........ 5,435 4,952 660 -95 -81 680 30... 5,997 994 999 967 3,037 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

SEPTEMBER 1975 □ FEDERALLY SPONSORED CREDIT AGENC A ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, JULY 31, ! Amount Cou­ Amount moui (millions Agency, and date of issue pon (millions Agency, and date of issue lillioi of dollars) and maturity rate of dollars) and maturity dolla Federal National Mortgage Banks for cooperatives Association—C ont. Bonds: 300 Debentures: 2/3/75 - 8/4/75 ................. 478 500 10/13/70 - 9/10/75... 7.50 350 3/3/75-9/2/75.................... 411 400 3/12/73 -9/10/75......... 6.80 650 4/1/75 - 10/1/75............... 368 350 3/10/72 - 12/10/75... 5.70 500 5/1/75 - 11/3/75............... 374 600 9/10/73 - 12/10/75.... 8.25 300 6/2/75 - 12/1/75............... 459 700 3/11/71 - 3/10/76......... 5.65 500 7/1/75 -1/5/76................. 424 400 6/12/73 - 3/10/76........ 7.13 400 10/1/73 -4/4/77............... 200 300 6/10/71 -6/10/76......... 6.70 250 12/2/74- 10/1/79............. 201 300 2/10/72 - 6/10/76......... 5.85 450 600 9/10/74-6/10/76......... 10.00 700 600 11/10/71 - 9/10/76.... 6.13 300 Federal intermediate 300 6/12/72-9/10/76......... 5.85 500 credit banks 500 12/10/74-9/10/76.... 7.50 200 Bonds: 700 7/12/71 - 12/10/76.... 7.45 300 11/4/74-8/4/75............... 758 600 12/11/72- 12/10/76... 6.25 500 12/2/74-9/2/75............... 783 500 6/10/74-12/10/76. ... 8.45 600 1/2/75 -10/1/75............... 563 500 3/13/62 - 2/10/77.... 4.50 198 2/3/75 - 11/3/75............... 824 500 9/11/72 - 3/10/77........ 6.30 500 3/3/75-12/1/75.................. 897 500 3/11/74 - 3/10/77......... 7.05 400 3/1/73 - 1/5/76................. 261 200 12/10/70 - 6/10/77. . . 6.38 250 4/1/75 - 1/5/76................. ,079 300 5/10/71 -6/10/77......... 6.50 150 5/1/75 -2/2/76................. 909 600 12/10/73 - 6/10/77.... 7.20 500 6/2/75 - 3/1/76................. 840 300 9/10/71 -9/12/77......... 6.88 300 7/1/75 -4/1/76................. 739 300 9/10/73 - 9/12/77......... 7.85 400 7/2/73 - 1/3/77................. 236 700 7/10/73 - 12/12/77.... 7.25 500 7/1/74-4/4/77................. 321 400 10/1/73 - 12/12/77.... 7.55 500 1/2/74- 1/3/78................. 406 500 6/10/74-3/10/78......... 8.45 650 1/2/75 -1/2/79................. 410 500 3/10/75-3/10/78........... 6.70 350 7/2/75 -1/2/80................. 531 600 6/12/73 -6/12/78........ 7.15 600 600 6/10/75 -6/12/78......... 7.45 400 500 3/11/74 - 9/11/78..... 7.15 550 Federal land banks 400 10/12/71 - 12/11/78.. 6.75 300 Bonds: 500 7/10/74- 12/11/78.... 8.95 450 7/20/71 - 10/20/75........... 300 500 12/10/73 -3/12/79.... 7.25 500 10/23/73 - 10/20/75......... 362 500 9/10/73 -6/11/79......... 7.85 300 4/20/72- 1/20/76............. 300 350 9/10/74 - 6/11/79......... 9.80 600 7/22/74 - 1/20/76............. 650 300 6/12/72-9/10/79......... 6.40 300 2/21/66 - 2/24/76........... 123 200 12/10/74 - 9/10/79.... 7.80 700 1/22/73 - 4/20/76............. 373 200 12/10/71 - 12/10/79. . 6.55 350 4/22/74-4/20/76............. 400 400 6/10/75 -12/10/79.... 7.75 650 7/20/66 - 7/20/76........... 150 183 2/10/72 - 3/10/80......... 6.88 250 1/21/74-7/20/76............. 360 400 3/10/75-3/10/80........... 7.25 750 4/23/73 - 10/20/76........... 450 300 4/1/75 -4/10/80........... 7.63 300 4/21/75 - 1/20/77............. 750 400 6/10/74 - 6/10/80......... 8.50 600 7/21/75 -10/20/76 650 2/16/73 -7/31/80......... 5.19 1 4/22/74-4/20/77............. 565 2/16/73 -7/31/80........ 3.18 9 7/20/73 - 7/20/77............. 550 10/1/73 -9/10/80......... 7.50 400 10/20/71 - 10/20/77......... 300 1/16/73 - 10/30/80.... 4.46 5 10/21/74- 1/23/78........... 546 400 12/11/72 - 12/10/80... 6.60 300 2/20/63 - 2/20/73-78.... 148 350 6/29/72 - 1/29/81........ 6.15 156 5/2/66 - 4/20/78............. 150 140 3/12/73 - 3/10/81......... 7.05 350 1 /20/75 - 4/20/78............. 713 150 4/18/73 - 3/10/81......... 6.59 26 7/20/72 - 7/20/78........... 269 150 3/21/73 - 5/1/81........... 4.50 18 7/22/74-7/20/78............. 350 3/21/73 - 5/1/81........... 5.77 2 10/23/73 - 10/19/78......... 550 300 1/21/71 - 6/10/81.... 7.25 250 2/20/67 - 1/22/79............. 285 9/10/71 -9/10/81......... 7.25 250 1/21/74- 1/22/79............. 300 9/10/74-9/10/81......... 9.70 300 9/15/72 -4/23/79............. 235 3/11/74 - 12/10/81___ 7.30 250 2/20/74 - 7/23/79............. 389 7/10/74-3/10/82........ 8.88 300 10/23/72 - 10/23/79......... 400 2,022 6/28/72-5/1/82........... 5.84 58 1/22/73 - 1/21/80............. 300 2/10/71 - 6/10/82......... 6.65 250 7/20/73 - 7/21/80............. 250 248 9/11/72 - 9/10/82......... 6.80 200 10/21/74- 10/20/80......... 400 250 12/10/73 - 12/10/82... 7.35 300 2/23/71 -4/20/81............. 224 3/11/71 -6/10/83......... 6.75 200 7/22/74 -7/20/81............. 265 6/12/73 -6/10/83......... 7.30 300 1/20/75 -1/20/82............. 400 53 11/10/71 -9/12/83____ 6.75 250 4/20/72 - 4/20/82............. 200 5 6/10/75 - 12/12/83.... 8.00 300 4/21/75 -4/20/82............. 300 71 4/12/71 -6/11/84......... 6.25 200 4/23/73 - 10/20/82.......... 239 35 7/10/75 -7/10/84......... 8.20 300 7/21/75 -1/20/83............. 464 10 12/10/74-9/10/84____ 7.95 300 10/23/73 - 10/20/83 .... 300 21 12/10/71 - 12/10/84. . . 6.90 250 6/23/75 - 7/22/85............. 391 81 3/10/75-3/11/85............. 7.65 500 200 3/10/72 - 3/10/92......... 7.00 200 6/12/72-6/10/92.......... 7.05 200 12/11/72- 12/10/97-82. 7.10 200 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 □ SEPTEMBER 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—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 2,83-1 2,653 30,136 28,237 3,371 2,948 10,031 9,357 15,437 13,961 July. . 16,685 6,174 119 19,446 2,436 2,656 30,453 28,419 3,520 2,914 10,163 9,556 15,654 14,351 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a i o d n a g d d e s s i U tie ti s l­ 4 H in o g u s s­ V a a e n i t s d e * r­ O p p o t u s h r e e ­ s r gations auth. 1971................. 24,963 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972................ 23,653 13,305 9,332 959 57 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 6,741 1973................ 23,968 12,257 10,632 1,022 r57 4,212 r9,505 10,249 22,397 4,311 1,458 5,654 2,639 8,335 1974................ 24,315 13,563 10,212 461 79 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 1974—July. .. 1,466 859 600 7 540 158 761 1,456 314 58 154 930 Aug... 1,109 576 529 4 141 400 565 1,067 228 85 257 15 482 Sept... 1,705 869 832 4 448 641 611 1,669 251 11 380 21 1,006 Oct.. .. 2,865 1,707 1,153 5 328 974 1,558 2,738 343 110 236 110 1,939 Nov.. . 2,487 1,110 1,374 3 689 1,005 789 2,403 698 4 866 9 826 Dec.... 1,500 761 717 22 222 558 700 1,475 297 64 424 53 637 1975—Jan.. .. 2,367 1,364 997 6 372 702 1,293 2,332 710 49 644 172 757 Feb.... 2,327 1,704 618 5 877 582 861 2,287 432 206 417 105 1,127 Mar... '2,126 rl ,319 805 2 376 r709 1,045 *•2,071 463 94 471 35 rl ,008 Apr__ 2,391 1,484 900 7 368 876 1,143 2,311 405 61 733 38 1,074 May... 2,863 1,857 1,001 5 811 1,196 852 2,769 419 210 559 25 1,556 Juner.. 3,022 1,736 1,284 2 938 1,113 969 2,821 428 164 816 27 1,386 July... 3,503 1,379 2,118 6 1,611 972 910 3,480 380 147 855 37 2,061 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 s 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

SEPTEMBER 1975 □ SECURITY ISSUES A 39 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o .S vt . . an S d t a lo te cal Others Total Govt.2 agency3 (U.S.)4 Total 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 r287 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 r354 Feb............ 4,526 3,904 3,201 r703 173 449 Mar........... 5,368 4,471 3,971 r500 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 r765 507 933 5 930 Feb........................................ 1,631 44 r65 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 o SEPTEMBER 1975 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period AH 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 2,190 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972.......................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973.......................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1974......................... 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1974—1.................... 906 324 -11 363 -37 -35 2,172 827 675 76 1,662 20 II.................. 1,921 -12 698 213 -13 12 1,699 1,038 1,080 -7 877 82 Ill................. 1,479 -421 189 -664 49 -6 1,358 862 1,116 222 1,194 88 IV................. 3,098 126 240 -47 342 9 2,079 1,107 628 107 1,695 17 1975—1................... 5,134 262 373 77 1 1 2,653 1,569 1,269 24 1,742 18 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com­ 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in­ Note.—Securities and Exchange Commission estimates of cash trans­ ternal funds or with proceeds of issues for that purpose. actions only. As contrasted with data shown on preceding page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963............... 2,460 1,504 952 25,214 1,341 23,873 1974—July. . 442 352 90 37,669 4,609 33,060 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Aug... 446 339 127 35,106 4,953 30,153 1965............... 4,359 1,962 2,395 35,220 1,803 33,417 Sept... 499 292 207 31,985 5,078 26,907 Oct.. . 816 311 505 37,115 5,652 31,463 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Nov... 619 335 284 36,366 5,804 30,562 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Dec... 736 411 325 35,777 5,637 30,140 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 1975—Jan... 1,067 428 639 3,7407 3,889 33,518 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Feb... 889 470 419 39,330 4,006 35,324 1970............. 4,624 2,987 1,637 47,618 3,649 43,969 Mar.. 847 623 224 40,449 3,870 36,579 1971............... 5,145 4,751 394 55,045 3,038 52,007 Apr.. . 808 791 17 42,353 3,841 38,512 May.. 677 735 -58 43,832 3,879 39,953 1972............... 4,892 6,563 -1,671 59,831 3,035 56,796 June.. r705 811 r — 108 45,538 r3,640 r41,898 1973............... 4,358 5,651 -1,261 46,518 4,002 42,516 July... 763 981 —218 42,896 3,591 39,305 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

SEPTEMBER 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 a r f o x t f e e i s r ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a t l i s l p o o u i n w t m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a a r f o x t f e e i s r ts d C d e i a n v s d i h ­ s t U p ri r b n o u d fi t i t e s s d ­ co c a t n a l i l o s p 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 46.8 1973—III... 122.7 49.9 72.9 29.8 43.1 71.6 1969................ 84.9 40.1 44.8 24.3 20.5 51.9 IV... 122.7 49.5 73.2 30.7 42.5 73.1 1970............... 74.0 34.8 39.3 24.7 14.6 56.0 1971................ 83.6 37.5 46.1 25.0 21.1 60.4 1974—I. 135.4 52.2 83.2 31.6 51.6 74.1 1972................ 99.2 41.5 57.7 27.3 30.3 66.3 II. . . 139.0 55.9 83.1 32.5 50.5 75.7 1973................ 122.7 49.8 72.9 29.6 43.3 71.2 III... 157.0 62.7 94.3 33.2 61.1 77.6 1974................ 140.7 55.7 85.0 32.7 52.4 76.7 IV... 131.5 52.0 79.5 33.3 46.2 79.3 1975— I. ... 101.2 39.0 62.3 33.8 28.5 81.2 II*... 108.9 41 .5 67.4 34.0 33.4 83.0 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . .1 Other taxes 1970................................ 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971................................ 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........................... c229.8 c590.9 58.1 11.2 3.2 245.3 c222.7 c50.3 361.1 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 Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other1 T A (S o . . R A ta . . ) l 1971.......................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972......................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973......................... 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 1974.......................... 112.40 22.62 23.39 3.18 2.54 2.00 2.12 17.63 2.92 13.96 22.05 1973—1.................... 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II.................. 24.73 4.65 4.51 .71 .46 .72 .43 3.91 .68 3.27 5.40 97.76 Ill................. 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 100.90 IV ............... 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 103.74 1974—1.................... 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II................. 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill................. 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV................. 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—1................... 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 114.57 II.................. 28.43 5.59 6.55 .97 .71 .47 .77 4.15 .79 3.22 5.19 112.46 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 o SEPTEMBER 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 IIr III' IV r Ir II ALL HOLDERS................................................. 499,758 564,825 634,954 664,291 678,681 688,563 695,337 709,279 1- to 4-family.................................................... 307,200 345,384 386,240 402,131 410,175 414,950 418,663 428,710 Multifamily1..................................................... 67,367 76,496 85,401 88,258 90,269 92,042 92,913 93,644 Commercial....................................................... 92,333 107,508 123,965 132,121 135,046 137,280 138,278 140,127 Farm................................................................... 32,858 35,437 39,348 41,781 43,191 44,291 45,483 46,798 PRIVATE FINANCIAL INSTITUTIONS.. 394,239 450,000 505,400 528,166 537,512 542,576 546,894 558,402 1- to 4-family.................................................... 253,540 288,053 322,047 335,408 340,848 343,363 346,073 354,471 Multifamily1..................................................... 52,498 59,204 64,730 66,583 67,843 68,520 69,019 69,964 Commercial....................................................... 78,345 92,222 107,128 114,184 116,509 118,263 119,261 121,210 Farm................................................................... 9,856 10,521 11,495 11,991 12,312 12,430 12,541 12,757 Commercial banks2.......................................... 82,515 99,314 119,068 127,320 130,582 132,105 132,105 133,305 48,020 57,004 67,998 72,253 73,987 74,758 74,740 75,419 3,984 5,778 6,932 7,313 7,496 7,619 7,614 7,684 26,306 31,751 38,696 41,926 43,092 43,679 43,700 44,097 Farm............................................................... 4,205 4,781 5,442 5,828 6,007 6,049 6,051 6,105 Mutual savings banks...................................... 61,978 67,556 73,230 74,225 74,809 74,920 75,160 75,726 38,641 41,650 44,246 44,398 44,604 44,670 44,796 45,133 Multifamily1................................................. 14,386 15,490 16,843 17,070 17,208 17,234 17,292 17,417 Commercial................................................... 8,901 10,354 12,084 12,698 12,938 12,956 12,997 13,100 Farm............................................................... 50 62 57 59 59 60 75 76 Savings and loan associations........................ 174,250 206,182 231,733 243,393 247,612 249,293 252,442 261,336 142,275 167,049 187,750 197,002 200,343 201,553 204,099 211,290 Multifamily1................................................. 17,355 20,783 22,524 23,342 23,573 23,683 23,831 24,409 Commercial................................................... 14,620 18,350 21,459 23,049 23,696 24,057 24,512 25,637 75,496 76,948 81,369 83,228 84,509 86,258 87,187 88,035 24,604 22,350 22,053 21,755 21,914 22,382 22,438 22,629 16,773 17,153 18,431 18,858 19,566 19,984 20,282 20,454 28,518 31,767 34,889 36,511 36,783 37,571 38,052 38,376 Farm............................................................... 5,601 5,678 5,996 6,104 6,246 6,321 6,415 6,576 FEDERAL AND RELATED AGENCIES.. 39,357 45,790 55,664 62,585 67,829 72,267 75,973 79,807 1- to 4-family.................................................... 26,453 30,147 35,454 39,784 43,188 45,748 47,751 50,500 Multifamily i..................................................... 4,555 6,086 8,489 9,643 10,644 11,790 12,662 12,898 Commercial 11 Farm................................................................... 8,338 9,557 11,721 13,158 13,997 14,729 15,560 16,409 Government National Mortgage Association 5,323 5,113 4,029 3,618 4,052 4,848 5,584 5,612 1- to 4-family................................................ 2,770 2,490 1,330 1,194 1,337 1,600 1,843 1,852 Multifamily1................................................. 2,542 2,623 2,699 2,424 2,715 3,248 3,741 3,760 Commercial . ....................... 11 Farmers Home Administration...................... 819 837 1,200 1,400 1,500 1,600 1,700 1,800 398 387 550 642 688 734 780 826 Farm............................................................... 421 450 650 758 812 866 920 974 Federal Housing and Veterans Administra­ tions ............................................................ 3,389 3,338 3,476 3,619 3,765 3,900 4,025 4,150 1- to 4-family................................................ 2,517 2,199 2,013 1,980 2,037 2,083 2,119 2,155 872 1,139 1,463 1,639 1,728 1,817 1,906 1,995 Federal National Mortgage Association.... 17,791 19,791 24,175 26,559 28,641 29,578 29,754 30,015 1- to 4-family................................................ 16,681 17,697 20,370 21,691 23,258 23,778 23,1A3 23,988 1,110 2,094 3,805 4,868 5,383 5,800 6,011 6,027 Federal land banks (farm only)................... 7,917 9,107 11,071 12,400 13,185 13,863 14,640 15,435 Federal Home Loan Mortgage Corporation. 964 1,789 2,604 3,191 3,713 4,586 4,608 4,944 1- to 4-family................................................ 934 1,754 2,446 2,951 3,414 4,217 4,231 4,543 Multifamily1................................................. 30 35 158 240 299 369 377 401 GNMA Pools.................................................... 3,154 5,815 9,109 11,798 12,973 13,892 15,662 17,851 1- to 4-family................................................ 3,153 5,620 8,745 11,326 12,454 13,336 15,035 17,136 1 195 364 472 519 556 627 715 INDIVIDUALS AND OTHERS 3................. 66,162 69,035 73,890 73,540 73,340 73,720 72,470 71,070 27,207 27,184 28,739 26,939 26,139 25,839 24,839 23,739 Multifamily1..................................................... 10,314 11,206 12,182 12,032 11,782 11,732 11,232 10,782 Commercial....................................................... 13,977 15,286 16,837 17,937 18,537 19,017 19,017 18,917 14,664 15,359 16,132 16,632 16,882 17,132 17,382 17,632 1 Structure of 5 or more units. Note.—Base$ 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

SEPTEMBER 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 m 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—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 4,944 1,936 3,008 210 5 28 700 July. . 30,351 19,385 8,693 538 575 6,119 139 530 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 e n n t ( r t p a ) e c r t ( F p c e e h r e a s c r g e a e n n s t d )2 M (y a e tu ar r s i ) ty L (p o e a r r n a t / c i p e o r n ic t) e pr o P i f c u e d r c o ( h l t l h a a o s r 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^ ry 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—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 43.5 32.2 8.90 9.05 9.16 June................. 8.73 1.42 26.5 76.4 43.1 32.4 8.96 9.00 9.06 July*............... 8.68 1.35 25.9 75.9 44.0 32.9 8.90 9.00 9.13 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 □ SEPTEMBER 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 Mar. 24 Apr. 7 Apr. 21 May 5 May 19 June 2 June 16 June 30 July 14 July 28 Aug. 11 Aug. 25 Amounts (millions of dollars): Govt.-underwritten loans 460.5 551.6 470.9 525.5 165.6 172.5 73.4 358.7 333.2 415.8 578.7 643.1 Accepted.................................. 321.4 277.2 247.3 280.4 115.0 80.4 38.6 246.9 174.9 247.7 365.5 223.0 Conventional loans Offered1.................................... 60.7 99.8 79.2 69.8 46.4 51.2 28.5 67.5 71.4 56.5 96.9 98.5 Accepted.................................. 35.8 44.6 51.3 43.9 38.4 27.1 15.7 47.3 35.8 34.5 48.9 31.0 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 8.85 8.98 9.13 9.29 9.25 9.14 9.06 9.07 9.10 9.17 9.32 9.50 Conventional loans................... 9.00 9.13 9.26 9.43 9.41 9.26 9.21 9.18 9.20 9.26 9.38 9.55 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 7.2 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., V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.1 29.7 29.8 29.7 29.8 29.8 29.8 Life insurance cos.......... 13.7 13.6 13.3 13.1 12.9 12.7 12.5 FHA............................ 9.3 9.2 9.0 8.7 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 l u a i n t r n s t s e t ) o d f (th am o L u o o s a u a n n n t d s C in o r t n a e t t r r e e a s c t t (y M rs a . t / u m r o it s y .) t L o ra - o v t a i a n o l - u e C (p a t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e t r i b o a t ge P co e n r s c t e a n n t t of dollars) (per cent) (per cent) 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

SEPTEMBER 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 loans i loans Retail Credit outlets cards 2 196 5 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 5,724 706 4,889 196 6 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 5,812 874 5,336 196 7 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 6,041 1,029 5,727 196 8 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 5,966 1,227 6,300 196 9 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 5.936 1,437 6,921 197 0 127,163 102,064 35,184 31,465 5,070 30,345 25.099 9,675 6,163 1,805 7,456 197 1 138,394 111,295 38,664 34,353 5,413 32,865 27.099 10,585 6,397 1,953 8,164 197 2 157,564 127,332 44.129 40,080 6,201 36,922 30,232 12,256 7,055 1,947 8,974 197 3 180,486 147,437 51.130 47,530 7,352 41,425 33,049 13,241 7,783 2,046 9,979 197 4 190,121 156.124 51.689 52.009 8,162 44.264 33.997 12.979 8,012 2,122 10.884 1974—July. 184,805 152,142 52,082 48,592 8,068 43,400 32,663 13,192 6.936 2,204 10,331 Aug. 187,369 154,472 52,772 49,322 8,214 44,164 32,897 13,202 6,983 2,282 10.430 Sept. 187,906 155,139 52,848 49,664 8,252 44,375 32,767 13,131 6,876 2,277 10,483 Oct.. 188,023 155,328 52,736 49,986 8,287 44,319 32,695 13,003 7,027 2,156 10,509 Nov. 188,084 155,166 52,325 50,401 8,260 44,180 32,918 12,950 7,174 2,144 10,650 Dec., 190,121 156.124 51.689 52.009 8,162 44.264 33.997 12.979 8,012 2,122 10.884 1975—Jan.. 187,080 153,952 50,947 51,142 8,048 43,815 33,128 12,675 7,162 2,153 11,138 Feb.. 185,381 152,712 50,884 50,136 7,966 43,726 32,669 12,560 6,468 2,074 11,567 Mar. 184,253 151,477 50,452 49,391 7,925 43,709 32,776 12,542 6,452 2,033 11,749 Apr., 184,344 151,271 50,360 49,247 7,880 43,784 33,073 12,526 6,735 2,062 11 ,750 May, 185,010 151,610 50,465 49,329 7,908 43,908 33,400 12,443 7,268 2,073 11,616 June, 186,099 152,668 50,927 49,519 7,973 44,249 33,431 12,470 7,361 2,088 11,512 July. 187,211 153,930 51,556 49,637 8,040 44,697 33,281 12,282 7,388 2,180 11.431 1 Holdings of financial institutions; holdings of retail outlets are in­ Note.—Consumer credit estimates cover loans to individuals for cluded in “Other consumer goods paper.” household, family, and other personal expenditures, except real estate 2 Service station and miscellaneous credit-card accounts and home- mortgage loans. For back figures and description of the data, see “Con­ heating-oil accounts. sumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and Bulletins for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Nonin­ stalment End of period Total Automobile paper Other consumer goods paper Home Personal loans improve­ Single­ Total ment payment Purchased Direct Mobile Credit Other loans Check Other loans homes cards credit 196 5 35,652 28,962 10,209 5,659 4,166 2,571 6,357 6,690 196 6 38,265 31,319 11,024 5,956 4,681 2,647 7,011 6,946 196 7 40,630 33,152 10,972 6,232 5,469 2,731 7,748 7,478 196 8 46,310 37,936 12,324 7,102 1,307 5,387 2,858 798 8,160 8,374 196 9 50,974 42,421 13,133 7,791 2,639 6,082 2,996 1,081 8,699 8,553 197 0 53,867 45,398 12,918 7,888 3,792 7,113 3,071 1,336 9,280 8,469 197 1 60,556 51,240 13,837 9,277 4,423 4,419 4,501 3,236 1,497 10,050 9,316 197 2 70,640 59,783 16,320 10,776 5,786 5,288 5,122 3,544 1,789 11,158 10,857 197 3 81,248 69,495 19,038 12,218 7,223 6,649 6,054 3,982 2,144 12,187 11,753 197 4 84,010 72,510 18,582 11,787 7,645 8,242 6,414 4,458 2,424 12,958 11,500 1974—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 July. 81,767 70,996 17,708 11,613 7,351 8,042 6,497 4,463 2,396 12,926 10,771 See Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT □ SEPTEMBER 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 1 dealers outlets Mobile Other loans homes 196 5 23,851 9,218 4,343 232 10,058 8,289 7,324 965 9,791 315 9,476 196 6 24,796 9,342 4,925 214 10,315 9,315 8,255 1,060 10,815 277 10,538 196 7 24,576 8,627 5,069 192 10,688 10,216 9,003 1,213 11,484 287 11,197 196 8 26,074 9,003 5,424 166 11,481 11,717 10,300 1,417 12,018 281 11,737 196 9 27,846 9,412 5,775 174 12,485 13,722 12,028 1,694 13,116 250 12,866 197 0 27,678 9,044 2,464 3,237 199 12,734 15,088 12,986 2,102 13,900 218 13,682 197 1 28,883 9,577 2,561 3,052 247 13,446 17,021 14,770 2,251 14,151 226 13,925 197 2 32,088 10,174 2,916 3,589 497 14,912 19,511 16,913 2,598 15,950 261 15,689 197 3 37,243 11,927 3,378 4,434 917 16,587 22,567 19,609 2,958 18,132 299 17,833 197 4 38.925 12.435 3,570 4,751 993 17.176 25.216 22,116 3.100 19.473 286 19.187 1974—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 July. 38,177 12,793 3,503 4,258 778 16,845 26,837 23,507 3,330 17,920 280 17,640 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—July. 10.10 10.84 12.51 12.75 17.21 12.02 16.75 12.77 18.93 20.55 Aug. 10.25 10.95 12.66 12.84 17.22 12.13 16.86 Sept. 10.44 11.06 12.67 12.96 17.23 12.28 16.98 12.90 18.69 20.52 Oct.. 10.53 10.98 12.80 13.02 17.23 12.34 17.11 Nov. 10.49 11.19 12.75 12.94 17.23 12.40 17.21 13.12 18.77 20.65 Dec. 10.49 11.07 12.86 13.12 17.24 12.42 17.31 1974—Jan.. 10.55 11.09 12.78 12.96 17.25 12.39 16.56 13.24 18.90 20.68 Feb., 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar. 10.50 10.92 12.82 13.04 17.23 12.29 16.69 13.15 18.69 20.57 Apr. 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.07 18.90 20.57 June 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July. 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.21 19.24 20.78 Aug. 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept. 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.42 19.30 20.93 Oct.. 11.53 11.94 13.28 13.60 17.17 12.97 17.78 Nov. 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 21.16 Dec. 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan.. 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 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 July. 11.30 11.94 13.13 13.49 17.15 13.09 17.69 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

SEPTEMBER 1975 □ CONSUMER CREDIT A 47 INSTALMENT CREDIT EXTENDED AND REPAID (In millions of dollars) Type Holder Period Total Automobile Other Home Personal Commercial Finance Other Retail paper consumer improve­ loans banks companies financial outlets goods paper ment loans lenders Extensions 1967........................... 87,171 26,320 29,504 2,369 28,978 31,382 26,461 11,238 18,090 1968........................... 99,984 31,083 33,507 2,534 32,860 37,395 30,261 13,206 19,122 1969........................... 109,146 32,553 38,332 2,831 35,430 40,955 32,753 15,198 20,240 1970........................... 112,158 29,794 43,873 2,963 35,528 42,960 31,952 15,720 21,526 1971........................... 124,281 34,873 47,821 3,244 38,343 51,237 32,935 17,966 22,143 1972........................... 142,951 40,194 55,599 4,006 43,152 59,339 38,464 20,607 24,541 1973........................... 165,083 46,453 66,859 4,728 47,043 69,726 43,221 23,414 28,722 1974........................... 166,478 42,756 71,077 4,650 47,995 69,554 41,809 24,510 30,605 1974—July................ 14,635 3,812 6,164 416 4,243 6,129 3,685 2,201 2,620 Aug............... 14,394 3,887 5,993 388 4,126 6,034 3,476 2,290 2,594 Sept................ 14,089 3,835 5,935 302 4,017 6,050 3,408 2,079 2,552 Oct................. 13,626 3,369 5,948 348 3,961 5,600 3,229 2,160 2,637 Nov................ 12,609 3,062 5,700 321 3,526 5,390 2,823 1,863 2,533 Dec................. 12,702 3,205 5,798 294 3,405 5,012 3,240 1,901 2,549 1975—Jan................. 12,859 3,348 5,430 289 3,792 5,368 3,068 2,048 2,375 Feb................. 13,465 3,856 5,561 302 3,746 5,649 3,195 2,104 2,517 Mar................ 12,797 3,419 5,535 339 3,504 5,357 2,872 2,044 2,524 Apr................. 13,181 3,454 5,584 313 3,830 5,457 3,145 2,142 2,437 May............... 13,149 3,467 5,757 334 3,591 5,473 2,985 2,032 2,659 June............... 13,959 3,752 5,976 373 3,858 5,772 3,316 2,141 2,730 July................ 14,378 4,073 5,927 378 4,000 5,959 3,424 2,361 2,634 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—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 July. 13,509 3,690 5,860 348 3,611 5,749 3,227 1,957 2,576 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—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 July................ 869 383 67 30 389 210 197 404 58 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. □ SEPTEMBER 1975 MARKET GROUPINGS (1967 = 100) 1967 pro­ 1974 1974 1975 por­ aver­ Grouping tion age Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr June July* Aug.e Total index....................................... 100.C 124.8 125.2 125.6. 124.8: 121.7 117.4■ 113.7 111.2: 110.C> 109.9i 110.1 110.9' 111.51 112.9 Products, total..................................... 62.21 123.1 123.5 123.6I 122.9' 121.4i 118.7 115.4i 113.7 112.4I 112.9' 113.4I 114.1 114.4!■ 115.5 Final products................................... 48.95 121.7 122.1 122.6; 122.3f 120.9> 118.2’ 114.9> 113.3’ 112.2* 112.6; H3.7r 114.5! 114.9> 116.0 Consumer goods.......................... 28.5: 128.8 129.8 128. 8! 128.2: 126.3i 123.4> 120.1 118.8! 118.2I 119.6i 121.2! 123.1 124.3t 125.6 Equipment.................................... 20.42 111 .7 111.-: 113.8! 114.Ci 113.2: 110.7 107.81 105.3i 103.9i 103.C> 102.9• 102.3I 101.8! 102.9 Intermediate products..................... 13.26 128.3 128.6 127.6» 125.3i 123.C• 120.5 117.6. 115.2: 112.-7' 113.4t 112.4I- 112.4^ 112.1r 113.9 Materials.............................................. 37.79 127.4 128.5 129.3 128.1 122.1 114.81 110.5I 107.4i 105.9» 105.21 104.9> 105.6; 106.6; 108.6 Consumer goods Durable consumer goods...................... 7.86 127.9 131.8 129.1 126.5 119.7 110.1 104. C» 101.0> 103.1 107.8' 110.5’ 113.1 114.8f 117.3 Automotive products....................... 2.84 110.0 114.9 111.6 114.7 102.1 87.5 80.3■ 78.2 86.8! 93.6. 97.6. 103.3: 106.2\ 106.0 Autos............................................. 1.87 94.9 103.1 99.6 108.4 91.0' 69.8 62.6. 58.9 73.1 82.4 86.3i 93.2: 97.7' 96.8 Auto parts and allied goods........ .97 139.0 137.6 134.5 126.9 123.6 121.5 114.4• 115.5 113.2: 115.2: 119.3l 122.5 122.7' 123.7 Home goods......................................... 5.02 138.0 141.2 139.0i 133.2 129.7 123.0' 117.5 114.0» 112.3i 115.9' 117.8I 118.7 119.8 123.7 Appliances, TV, and radios............ 1.41 132.C 139.1 133.2 120.9 115.3 102.5 94.4 89.0 85.0i 96.7 102.4 103.5 104.3 Appliances and A/C................ .92 148.8 156.2 150.2 139.5 131.9 119.8 108.0' 104.8 99.1 114.2 118.4 118.3 118.2 .49 1.08 153.5 157.1 155.4 151.8 144.7 143.8 135.1 132.3 127.9 127.8 128.6 130.1 132.8 Misc. home goods........................... 2.53 134.7 135.8 135.3 132.2 131.4 125.5 123.0 120.1 121.0i 121.4 121 .7 122.2 122.9 125.3 Nondurable consumer goods................ 20.67 129.2 129.1 128.7 128.9 128.8 128.4 126.3 125.5 124.1 124.0 125.3 127.1 127.8 128.7 Clothing............................................ 4.32 109.0 106.4 106.0 104.5 103.1 102.0 95.0 94.5 90.9 89.2 94.4 97.3 Consumer staples............................. 16.34 134.5 135.1 134.8 135.4 135.6 135.5 134.5 133.6 132.7 133.3 133.5 134.9 135.4 136.2 Consumer foods and tobacco.... 8.37 125.4 124.4 124.4 125.2 126.2 125.3 123.3 123.2 120.7 122.7 122.4 123.7 124.1 124.7 Nonfood staples........................... 7.98 144.0 146.5 145.7 146.1 145.3 146.2 146.4 144.5 145.3 144.3 145.3 146.6 147.1 148.4 Consumer chemical products.. 2.64 158.4 159.0 157.7 159.8 155.2 159.1 160.6 157.1 158.2 157.6 158.4 159.2 161 .1 Consumer paper products....... 1.91 125.2 129.5 130.9 128.5 127.4 126.7 122.0 121.9 120.9 118.4 122.8 123.7 123.4 Consumer fuel and lighting... 3.43 143.8 146.2 144.6 145.4 147.9 147.3 149.2 147.2 149.0 148.6 147.8 149.6 149.4 Residential utilities............... 2.25 153.7 155.4 156.2 155.5 159.3 159.0 159.9 159.7 163.1 161 .9 160.9 161 .3 Equipment Business equipment............................... 12.74 129.4 128.8 132.3 132.0 131.0 127.1 122.3 119.3 117.0 115.4 115.0 114.0 113.6 115.6 Industrial equipment....................... 6.77 128.7 129.6 132.0 130.9 129.3 126.7 122.9 120.4 118.8 116.4 115.3 114.0 112.3 114.4 Building and mining equip.......... 1.45 136.0 136.5 139.8 141.2 140.1 137.4 138.4 137.0 137.7 132.3 131.7 127.7 125.8 128.0 Manufacturing equipment.......... 3.85 121.7 123.1 124.4 122.5 119.4 116.5 111.8 109.4 106.6 105.6 105.0 104.2 103.8 106.1 Power equipment......................... 1.47 139.9 139.6 144.2 142.8 144.5 142.6 136.6 132.1 131.8 128.9 126.2 125.8 121.3 123.5 Commercial, transit, farm equip.. . 5.97 130.3 127.6 132.8 133.2 132.9 127.6 121.6 118.0 115.1 114.2 114.7 114.2 115.1 117.2 Commercial equipment................ 3.30 141.1 134.0 143.3 144.1 143.1 139.3 135.2 130.4 127.8 123.2 121.5 121 .1 123.3 125.4 Transit equipment....................... 2.00 109.6 109.3 111.8 111.2 109.8 102.9 91 .8 91 .5 88.8 92.2 98.6 98.0 98.0 100.1 Farm equipment........................... .67 138.7 150.5 144.1 145.4 151 .9 143.7 143.8 135.9 130.2 135.7 129.0 127.3 125.4 Defense and space equipment.............. 7.68 82.3 82.7 83.1 84.1 83.7 83.4 83.8 82.4 82.1 82.4 82.7 82.9 82.6 81.9 Military products............................. 5.15 81.2 81.5 82.3 82.5 81.8 81 .3 81.5 80.7 80.3 80.7 82.0 82.0 82.1 80.9 Intermediate products Construction products......................... 5.93 129.6 128.0 127.4 123.5 121 .3 118.3 115.7 112.1 109.1 110.1 107.6 106.5 107.0 107.7 Misc. intermediate products............... 7.34 127.3 129.2 127.8 126.8 124.2 122.5 119.2 118.4 115.6 116.1 116.2 117.4 117.4 Materials Durable goods materials....................... 20.91 127.3 128.1 129.2 129.3 123.5 114.2 110.3 107.0 104.7 101.6 100.2 99.8 100.0 103.0 Consumer durable parts.................. 4.75 112.1 117.5 117.2 115.2 104.1 91.7 83.7 82.1 84.7 86.0 87.7 89.9 92.7 95.1 Equipment parts............................... 5.41 123.8 125.8 125.0 124.0 122.2 118.3 116.9 112.0 108.7 104.6 102.1 97.9 97.9 100.7 Durable materials nec..................... 10.75 135.9 133.9 136.6 138.3 132.7 122.9 118.8 115.4 111.4 106.9 104.7 105.0 104.3 107.3 Nondurable goods materials................. 13.99 128.5 130.4 129.3 126.8 122.1 116.2 109.2 105.7 105.3 107.9 109.5 111.5 113.2 115.2 Textile, paper, and chem. mat....... 8.58 139.8 143.2 142.2 138.1 131.1 122.9 112.9 108.5 106.2 110.4 113.2 116.0 118.5 121 .7 Nondurable materials n.e.c............. 5.41 110.6 110.0 108.9 108.9 107.8 105.7 103.3 101.1 103.9 104.0 103.7 104.6 104.7 105.2 Fuel and power, industrial................. 2.89 122.6 123.5 129.0 126.4 112.7 113.0 117.8 118.2 118.0 117.5 118.0 119.8 121 .5 116.9 Supplementary groups Home goods and clothing................... 9.34 124.6 125.0 123.8 120.0 117.4 113.2 107.1 105.0 102.3 103.6 106.9 108.9 110.2 113.0 1.82 139.4 140.4 136.7 131.5 127.6 120.3 126.1 119.9 122.3 124.2 124.3 125.7 124.2 Gross vaiue of products in market structure (In billions of 1963 dollars) Products total....................................... 286.3 446.9 447.1 445.7 439.0 426.7 416.4 410.1 405.1 409.6 408.6 413.9 413.2 418.0 Final products................................. 221.4 345.0 346.1 34-6.5 341.3 331.0 322.3 317.7 315.3 319.0 319.4 324.7 323.0 327.0 Consumer goods.......................... 156.3 235.1 233.1 233.7 228.9 222.3 216.4 213.7 213.2 217.6 217.8 233.4 222.6 225.3 Equipment.................................... 65.3 109.9 112.8 112.7 112.4 108.8 105.9 103.9 102.2 101.4 101 .5 101 .5 100.4 101.7 Intermediate products..................... 64.9 102.1 101.0 99.4 97.4 95.8 94.3 92.3 90.0 90.5 89.2 89.3 90.0 90.9 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ INDUSTRIAL PRODUCTION: S.A. A 49 INDUSTRY GROUPINGS (1967 = 100) 1967 pro­ 1974 1974 1975 Grouping p ti o o r n ­ a a v g e e r­ Aug. Sept. Oct. Nov. Dec. Apr. May r June July Aug.* 88.55 124.4 125.2 125.5 124.6 120.9 116.1 111.7 109.2 ' 107.9 108.2 109.2 109.3 111.0 52.33 120.7 121.6 122.1 121.6 117.9 112.2 108.2 104.8 103. 103.3 102.5 102.9 102.3 103.8 36.22 129.7 130.4 130.5 128.9 125.4 121.9 117.0 115.6 114.8 116.1 118.2 119.7 121.7 Mining and utilities............................. 11.45 127.3 127.4 128.7 128.5 125.9 125.7 127.0 127.3 128.1 126.5 126.5 126.3 125.2 6.37 109.3 107.3 109.2 110.5 105.0 104.4 107.0 108.6 108.5 105.9 105.8 106.1 103.7 Utilities............................................. 5.08 149.9 152.6 153.1 151.2 152.3 152.6 153.0 150.9 153.1 152.3 152.6 151.7 152.2 Durable manufactures Primary and fabricated metals............ 12.55 127.5 126.5 127.2 127.6 124.4 116.0 112.4 107.7 105.1 103.2 99.8 99.2 98.4 99.5 Primary metals................................. 6.61 124.1 121.9 123.0 126.0 121.0 108.6 107.2 102.1 98.1 95.0 89.9 88.7 88.2 88.4 Iron and steel, subtotal................ 4.23 119.9 120.7 119.1 123.9 117.7 107.9 110.6 105.0 103.1 99.4 90.1 87.4 86.6 87.0 Fabricated metal products.............. 5.94 131.4 131.5 132.0 129.6 128.2 124.1 118.2 113.7 112.4 100.9 111.1 109.9 111.8 Machinery and allied goods................. 32.44 116.3 117.8 118.8 118.4 114.9 109.6 105.4 102.4 101.9 101.7 102.3 101.5 103.2 17.39 128.1 130.5 132.5 131.1 128.9 124.8 119.6 115.6 110.8 109.0 108.4 108.2 109.5 Nonelectrical machinery.............. 9.17 133.8 136.4 137.8 137.4 135.1 132.5 126.7 123.6 116.9 113.7 112.2 111 .9 113.5 8.22 125.2 123.7 126.4 124.0 121.7 116.3 111.5 106.6 104.0 103.8 104.2 104.1 104.9 Transportation equipment.............. 9.29 96.9 99.9 100.4 102.1 93.7 83.6 78.9 77.1 84.7 87.6 90.5 88.4 92.8 Motor vehicles and parts............ 4.56 113.2 117.8 118.6 123.0 107.1 86.4 78.2 77.6 93.1 95.0 100.0 98.0 107.1 Aerospace and misc. trans. eq... 4.73 81.1 82.6 82.8 81.9 80.9 80.9 79.5 76.6 76.6 80.4 81.3 79.2 79.0 Instruments....................................... 2.07 143.9 146.7 144.9 142.0 142.3 139.5 139.1 134.2 131.1 129.7 130.7 131.9 134.0 Ordnance, private and Govt........... 3.69 86.1 87.1 87.5 87.2 86.6 86.6 86.2 86.9 86.7 86.7 87.7 86.4 85.3 Lumber, clay, and glass....................... 4.44 123.6 123.4 120.6 117.8 113.7 111.0 109.6 104.6 104.8 105.9 106.1 106.4 108.3 Lumber and products..................... 1.65 120.1 121.5 116.6 109.3 105.2 101.3 99.9 99.6 99.8 104.1 108.0 109.0 109.6 Clay, glass, and stone products.... 2.79 125.7 124.6 123.0 122.9 118.8 116.9 115.3 107.8 105.4 104.7 104.4 104.5 Furniture and miscellaneous................. 2.90 136.1 140.1 138.8 136.7 129.0 128.4 120.0 119.6 117.6 119.7 120.6 120.6 123.4 Furniture and fixtures. ................... 1.38 126.9 130.5 129.4 125.5 120.5 120.4 110.6 110.6 105.6 109.6 109.4 109.2 Miscellaneous manufactures........... 1.52 144.4 148.8 147.5 146.9 136.9 135.7 128.9 128.0 129. 128.5 129.0 130.8 131.2 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 108.9 107.4 106.5 105.1 101.9 96.3 88.9 89.6 87.5 90.4 93.2 94.6 96.8 98.5 Textile mill products....................... 2.69 122.7 124.3 121.9 119.1 112.8 102.9 95.6 93.3 96.8 100.4 103.8 106.5 110.3 Apparel products............................. 3.33 105.4 102.5 102.5 102.8 100.1 98.0 94.0 92.6 88.2 90.9 91 .0 Leather and products...................... .88 77.3 73.4 74.2 70.6 74.7 69.7 66.1 66.7 63.5 68.0 70.0 71.2 73.1 Paper and printing............................... 7.92 121.0 121.0 122.7 120.8 115.7 112.3 108.2 106.6 102.4 103.9 107.1 107.1 108.9 Paper and products......................... 3.18 134.0 132.2 135.3 133.9 124.3 116.1 114.3 109.5 104.5 105.8 105.8 108.5 109.4 Printing and publishing................... 4.74 112.3 113.4 114.4 111.9 110.0 109.8 104.1 104.7 100.2 102.6 106.1 105.5 107.2 Chemicals, petroleum, and rubber.... 11.92 151.7 154.4 154.7 152.4 146.5 141.6 136.5 132.4 130.2 131.0 132.5 135.7 138.1 141.8 Chemicals and products.................. 7.86 154.3 156.7 158.3 155.9 148.3 143.1 139.0 134.6 133.6 132.8 135.7 137.9 140.4 143.9 Petroleum products......................... 1.80 124.0 125.8 121.9 125.4 127.0 125.8 126.8 123.7 120.1 120.2 118.5 122.8 125.1 126.8 Rubber and plastics products......... 2.26 164.4 169.0 168.6 161.8 155.7 148.9 135.4 132.0 126.8 133.5 132.7 139.0 140.5 Foods and tobacco................................ 9.48 124.8 124.8 124.3 123.7 123.8 123.5 120.0 121.3 120.0 122.4 122.4 122.7 123.5 124.0 8.81 126.2 126.3 125.7 124.8 125.4 125.7 121.2 122.3 121.3 122.9 123.8 124.2 125.1 125.4 .67 106.4 104.2 106.0 110.3 103.8 96.2 104.7 108.4 102.6 115.9 103.8 102.2 Mining Metal, stone, and earth minerals......... 1.26 117.2 109.9 115.4 121.3 120.7 117.9 119.1 116.2 113.4 113.3 106.2 101.5 104.3 103.9 Metal mining................................... .51 129.2 110.0 130.5 141.4 136.8 134.7 133.8 131.1 125.4 125.8 114.8 110.6 112.1 Stone and earth minerals................ .76 109.1 109.9 105.0 107.5 109.8 106.4 109.0 106.1 105.1 104.7 100.4 95.4 98.9 Coal, oil, and gas................................. 5.11 107.3 106.7 107.7 107.8 101.2 101.1 103.9 106.8 107.4 105.8 106.8 106.6 103.7 .69 105.1 99.4 112.1 110.3 67.6 85.3 111.3 117.5 117.4 112.2 113.6 120.6 120.6 102.1 4.42 107.7 107.9 107.1 107.4 106.4 103.6 102.9 105.0 106.1 106.6 104.5 104.7 104.2 103.9 Utilities 3.90 159.5 162.8 162.4 161.2 162.9 163.0 162.5 161.1 165.4 164.1 163.0 163.4 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 □ SEPTEMBER 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonag­ utiliza­ Con­ ricul­ Period Products tion struc­ tural Total Whole­ Total in mfg. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales 3 sumer com­ Total Mate­ Manu­ output tracts ment— ment modity Inter­ rials factur­ = 100) Total i Con­ Equip­ mediate ing Total sumer ment goods 1955..................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956..................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957..................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958..................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959..................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960..................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961..................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962..................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963..................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964..................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965..................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966..................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967..................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968..................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969..................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970..................... 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 120 116.3 110.4 1971..................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 122 121.2 113.9 1972..................... 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973..................... 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 181.3 116.7 103.1 148.9 133.1 134.7 1974..................... 124.8 123.1 121.7 128.8 111.7 128.3 127.4 124.4 78.9 168.6 118.9 102.1 156.6 147.7 160.1 1974—July.......... 125.5 124.0 122.8 130.0 113.0 127.8 128.0 125.2 177.0 119.2 103.0 159.5 177 148.0 161.7 Aug.......... 125.2 123.5 122.1 129.8 111.4 128.6 128.5 125.2 ► 79.4 170.0 119.4 102.6 161.5 180 149.9 167.4 Sept.......... 125.6 123.6 122.6 128.8 113.8 127.6 129.3 125.5 187.0 119.7 102.5 162.0 176 151.7 167.2 Oct........... 124.8 122.9 122.3 128.2 114.0 125.3 128.1 124.6 148.0 119.8 101.7 162.1 175 153.0 170.2 Nov.......... 121.7 121.4 120.9 126.3 113.2 123.0 122.1 120.9 • 75.7 154.0 119.1 99.4 157.0 170 154.3 171.9 Dec........... 117.3 118.7 118.2 123.4 110.7 120.5 114.8 116.1 176.0 118.0 96.3 152.6 171 155.4 171.5 1975—Jan........... 113.7 115.4 114.9 120.1 107.8 117.6 110.5 111.7 135.0 117.3 93.6 148.9 176 156.1 171.8 Feb........... 111 .2 113.7 113.3 118.8 105.3 115.2 107.4 109.2 r68.2 135.0 116.5 90.8 143.0 179 157.2 171 .3 Mar.......... 110.0 112.4 112.2 118.2 103.9 112.7 105.9 107.7 153.0 116.0 89.9 142.8 176 157.8 170.4 Apr.......... 109.9 112.9 112.6 119.6 103.0 113.4 105.2 107.9 189.0 115.9 89.6 144.1 179 158.6 172.1 May......... 110.1 113.4 113.7 121.2 102.9 112.4 104.9 108.2 66.5 182.0 116.1 89.9 144.1 184 159.3 173.2 June......... 110.9 114.1 114.5 123.1 102.3 112.4 105.6 109.2 174.0 115.8 89.8 145.8 186 160.6 173.7 July.......... 111.5 114.4 114.9 124.3 101.8 112.7 106.6 109.3 165.0 116.2 89.7 148.4 191 162.3 175.7 Aug.......... 112.9 115.5 116.0 125.6 102.9 113.9 108.6 110.0 117.0 91.3 154.9 189 176.7 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; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Capacity utilization: Based on data from Federal Reserve, McGraw- Prices: Bureau of Labor Statistics data. Hill Economics Department, and Dept, of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1974 1975 Type of ownership and 1973 1974 type of construction July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction contracts 1........ 99,304 93,076 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955 6,574 9,598 9,143 9,324 9,044 By type of ownership: Public........................................ 26,563 32,209 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031 2,182 2,768 2,875 3,891 3,784 Private 1.................................... 72,741 60,867 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924 4,393 6,830 6,268 5,432 5,260 By type of construction: Residential building 1.............. 45,696 34,174 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583 2,316 3,029 3,073 3,116 3,093 Nonresidential building........... 31,534 33,859 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199 2,402 2,987 2,877 3,169 3,165 Nonbuilding............................. 22,074 25,042 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172 1,856 3,582 3,193 3,040 2,786 Private housing units authorized r.. 1,820 1,074 1,040 928 853 811 770 837 689 701 677 837 912 r949 1,007 (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

SEPTEMBER 1975 □ CONSTRUCTION A 51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 2 Nonresidential Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d C v e o a a v n t n e i s d o l e o n r p ­ ­ Other Total Indus­ Com­ b O u t i h l e d r - Other ment trial mercial 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—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. r 132,470 91,365 39,780 51,585 8,412 15,646 5,903 21.624 41,105 1,223 12,718 2.974 24,190 Feb.' 128,980 89,141 38,665 50,476 8,724 14,971 5,883 20,898 39,839 1,319 Mar.1 125,228 85,414 37,669 47,745 7,869 13,032 5,363 21,481 39,814 1,337 Apr.r 120,012 83,727 36,774 46,953 7,500 12,765 5,636 21,052 36,285 1,473 Mayr 120,273 82,827 37,310 45,517 8,197 12,109 5,268 19,943 37,446 1,180 June. 121,789 83,081 38,589 44,492 7.677 11,756 5,415 19.644 38,708 1,120 July*, 122,300 84,522 40,281 44,241 7,396 11,500 5,246 20,099 37,778 1,261 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) 1966......................................... 1,165 779 386 217 461 196 21.4 22.8 1967......................................... 1,292 844 448 240 487 190 22.7 23.6 1968......................................... 1,508 899 608 1,320 859 461 318 490 218 24.7 24.6 1969........................................ 1,467 811 656 1,399 807 591 885 350 536 413 448 228 25.6 27.0 1970......................................... 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 1971......................................... 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 1972........................................ 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 27.6 28.3 1973......................................... 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 1974......................................... 1,337 88 8 450 1,692 931 760 rl,189 r516 r673 371 501 407 35.9 36.2 1974—July.............................. 1,314 920 394 1,655 934 721 1,443 578 864 r343 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 r258 495 414 36.2 35.7 Oct............................... 1,106 792 314 1,627 908 719 1,322 553 769 r227 433 409 37.2 35.9 Nov.............................. 1,017 802 215 1,657 893 763 1,255 541 714 r204 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 38.8 36.5 Apr.............................. 980 762 218 r1,211 T756 r455 1,085 515 570 194 567 388 39.1 36.7 Mayr........................... 1,130 887 243 1,265 823 442 1,066 517 549 224 592 382 39.5 36.9 June............................. 1,088 879 209 1,107 735 372 1,048 516 532 210 556 376 37.8 37.2 July*........................... 1,238 927 311 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 □ SEPTEMBER 1975 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T o ( s o N t p t i a u t .S u l l a t . 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 ul o t n u a ra g l r i­ In ployed S.A.) industries agriculture 1969........................... 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973........................... 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1974........................... 150,827 57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 1974—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 Aug................ 153,824 57,331 95,331 93,146 85,352 81,884 3,468 7,794 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 r n a u c c t ­ Tr ti a p o n u n s b p a l o i n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 1970.......................................................... 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 1971.......................................................... 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973.......................................................... 76,833 20,054 638 4,028 4,646 16,665 4,075 12,986 13,742 78,334 20,016 672 3,985 4,699 17,011 4,173 13,506 14,285 SEASONALLY ADJUSTED 78,661 20,112 676 3,965 4,701 17,140 4,168 13,573 14,326 Sept............................................... 78,844 20,112 682 3,939 4,679 17,166 4,176 13,647 14,443 Oct................................................ 78,865 19,982 692 3,911 4,699 17,160 4,185 13,705 14,531 78,404 19,633 693 3,861 4,697 17,048 4,183 13,721 14,568 Dec............................................... 77,690 19,146 662 3,798 4,668 16,912 4,182 13,734 14,588 1975—Jan................................................ 77,227 18,718 700 3,789 4,607 16,863 4,173 13,747 14,630 Feb................................................ 76,708 18,297 702 3,596 4,561 16,832 4,164 13,771 14,785 Mar............................................... 76,368 18,146 706 3,486 4,512 16,799 4,157 13,754 14,808 Apr............................................... 76,349 18,090 703 3,475 4,511 16,794 4,163 13,754 14,859 May.............................................. 76,428 18,118 710 3,472 4,495 16,820 4,161 13,759 14,893 June.............................................. 76,291 18,082 710 3,416 4,474 16,868 4,154 13,752 14,835 JulyP............................................ 76,507 18,053 714 3,390 4,470 16,919 4,151 13,828 14,982 Aug.?............................................ 77,035 18,059 714 3,435 4,480 16,988 4,159 13,929 15,066 NOT SEASONALLY ADJUSTED 1974—Aug............................................... 78,561 20,288 690 4,286 4,734 17,058 4,222 13,668 13,615 Sept............................................... 79,097 20,350 688 4,191 4,721 17,153 4,180 13,647 14,167 Oct................................................ 79,429 20,142 693 4,150 4,718 17,225 4,172 13,719 14,610 Nov............................................... 79,125 19,763 693 3,981 4,702 17,342 4,309 13,707 14,771 Dec............................................... 78,441 19,175 657 3,722 4,663 17,591 4,161 13,665 14,807 1975—Jan................................................ 76,185 18,538 689 3,372 4,552 16,687 4,131 13,513 14,703 Feb............................................... 75,753 18,132 687 3,229 4,497 16,475 4,127 13,606 15,000 Mar............................................... 75,755 18,005 691 3,218 4,476 16,509 4,132 13,658 15,066 Apr............................................... 76,134 17,967 697 3,333 4,479 16,664 4,146 13,768 15,080 May.............................................. 76,641 18,038 711 3,465 4,495 16,791 4,161 13,869 15,111 June.............................................. 77,117 18,226 726 3,583 4,532 16,944 4,200 13,945 14,961 July*............................................ 76,305 17,975 728 3,621 4,515 16,877 4,213 13,980 14,396 Aug.?............................................ 76,881 18,467 729 3,713 4,516 16,907 4,213 14,026 14,310 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

SEPTEMBER 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 m n ip e e r - - F c 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 87.8 196 5 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 94.2 196 6 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 97.2 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 197 3 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 197 4 147.7 161.7 150.6 130.2 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1974—July. 148.0 160.5 150.9 130.3 163.2 218.5 146.2 141.4 135.3 140.6 141.0 151.4 137.8 134.6 137.7 Aug. 149.9 162.8 152.8 130.9 165.4 220.9 148.5 143.9 138.1 141.3 142.6 153.7 139.3 135.2 139.4 Sept. 151.7 165.0 154.9 131.4 167.9 222.7 150.2 146.6 139.9 142.2 144.0 155.2 141.2 137.0 140.4 Oct.. 153.0 166.1 156.7 132.2 170.1 225.5 151.5 149.0 141.1 142.9 145.2 156.3 143.0 137.8 141.4 Nov. 154.3 167.8 158.3 132.8 171.7 229.2 154.0 151.0 142.4 143.4 146.3 157.5 144.2 138.8 142.7 Dec. 155.4 169.7 159.9 133.5 174.0 228.8 156.7 152.3 141.9 143.5 147.5 159.0 145.3 139.8 143.9 1975—Jan.. 156.1 170.9 161.2 134.0 175.6 228.9 160.2 153.2 139.4 143.2 148.9 161.0 146.5 141.0 144.8 Feb.. 157.2 171.6 162.7 135.1 177.3 229.5 162.7 154.7 140.2 143.5 150.2 163.0 147.8 141.8 145.9 Mar. 157.8 171.3 163.6 135.5 178.2 228.3 164.0 155.6 140.9 144.8 151.1 164.6 148.9 142.0 146.5 Apr. 158.6 171.2 164.7 135.9 179.4 229.0 166.3 156.8 141.3 146.2 152.1 165.8 149.5 143.5 146.8 May 159.3 171.8 165.3 136.4 180.1 230.2 167.3 157.4 141.8 147.4 152.6 166.8 149.9 143.8 147.1 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 July. 162.3 178.6 167.1 137.3 182.3 234.1 170.4 158.3 141.1 152.6 154.0 169.8 151.2 144.4 147.6 Note.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Period m c t o A 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 P o a e s n o r e s o 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 M a q e h n e u r i a y n n d i ­ p ­ t ­ F t e u u t r r c e n . , i­ N t e m m a r l o a i l e n l n i ­ s c ­ ­ T e m p t q r o i e a o u r n n n i t p a s t1 ­ ­ ­ n c M e e o l i l s u a ­ s ­ I960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971............................. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972............................. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973............................. 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974............................. 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 1974—Aug................... 167.4 189.2 179.7 161.6 142.3 146.2 226.0 158.5 143.4 183.7 162.9 185.6 144.3 129.8 157.6 126.7 135.4 Sept................... 167.2 182.7 176.8 162.9 142.1 148.1 225.0 161.7 145.6 180.4 164.2 187.1 146.8 132.8 159.8 127.7 136.3 Oct.................... 170.2 187.5 183.5 164.8 140.5 145.2 228.5 168.5 147.5 169.4 166.0 186.9 150.0 135.5 162.2 134.2 137.1 Nov.................. 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 Dec................... 171.5 183.7 188.2 166.1 138.4 143.2 229.0 174.0 149.4 165.4 167.2 184.6 154.0 137.7 164.3 137.0 142.4 1975—Jan.................... 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 Feb................... 171.3 174.6 182.6 168.4 136.5 141.7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 Mar................... 170.4 171.1 177.3 168.9 134.3 143.2 233.0 181.8 149.7 169.6 170.0 186.1 158.8 138.5 170.8 139.5 146.8 Apr................... 172.1 177.7 179.4 169.7 134.4 147.5 236.5 182.4 149.4 174.9 169.7 185.7 159.7 138.5 173.0 139.9 147.3 May................. 173.2 184.5 179.0 170.3 135.2 147.7 238.8 182.1 148.9 183.0 169.8 185.1 160.4 138.6 173.1 139.9 147.5 June................. 173.7 186.2 179.7 170.7 135.9 148.7 243.0 181.2 148.6 181.0 169.8 184.5 161.0 139.0 173.3 140.1 147.5 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 Aug................... 176.7 193.2 186.3 172.2 137.6 149.3 252.4 182.1 150.0 179.7 170.0 184.3 162.2 139.8 175.8 140.5 147.8 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME □ SEPTEMBER 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 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,383.81,416.31,430.91,416.61,439.7 101.4 57.2 120.1 278.0 972.61,048.61,149.61,279.61,888.21,870.81,407.61,418.11,435.81,470.7 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 869.1 901.3 895.8 913.2 938.6 Durable goods.............................................. 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 129.5 136.1 120.7 124.9 130.6 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 375.8 389.0 391.7 398.8 410.1 Services......................................................... 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 363.8 376.2 383.5 389.5 397.9 Gross private domestic investment................... 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 211.8 205.8 209.4 163.1 148.1 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 198.3 197.1 191.6 182.2 179.1 10.6 2.4 9.5 27.9 100.6 104.6 116.8 136.8 149.2 149.4 150.9 151.2 146.9 142.7 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 49.1 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 93.6 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 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 35.6 Change in business inventories................... 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 -31.0 Nonfarm.................................................... 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 -30.6 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 -1.5 -3.1 1.9 8.8 15.0 Exports.......................................................... 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 140.2 138.5 143.6 147.5 142.2 135.1 Imports......................................................... 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138.1 140.0 146.7 145.7 133.4 120.1 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 304.4 312.3 323.8 331.6 338.1 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 114.3 117.2 124.5 126.5 128.4 National defense...................................... 13.8 14.1 74.6 71.2 74.8 74.4 78.7 76.6 78.4 84.0 84.7 84.8 Other......................................................... 3.1 4.3 21.6 26.5 30.1 32.2 38.2 37.7 38 8 40.6 41.8 43.6 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 190.1 195.1 199.3 205.1 209.7 Gross national product in constant (1958) dollars................................v ....................... 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 827.1 823.1 804.0 780.0 783.1 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 II National income................................................ 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.51,130.21,155.51,165.41,150.71,171.0 Compensation of employees............................. 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 848.3 868.2 877.7 875.6 885.4 Wages and salaries....................................... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 744.6 761.5 769.2 765.1 773.0 Private....................................................... 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545.1 592.4 588.3 602.5 605.1 597.4 601.9 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 86.1 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 63.4 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 94.3 100.5 Profits before tax.......................................... 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 140.7 139.0 157.0 131.5 101.2 108.9 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 41.5 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 67.4 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 34.0 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 33.4 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -4.8 -4.9 -7.0 -17.6 -35.1 -33.4 -51.2 -28.1 -7.0 -8.4 Net interest....................................................... 4.7 4.1 3.2 2.0 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

SEPTEMBER 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 II Gross national product.................................... 103.1 55.6 124.5 284.8 977.11,054.91,158.01,294.91,397.41,383.81,416.31,430.91,416.61,439.7 l ess: 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 93.5 102.7 110.0 119.2 126.9 125.9 129.5 129.8 132.2 135.4 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 -1.2 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 -1.6 Equals: National income.................................. 86.8 40.3 104.2 241.1 800.5 857.7 946.51,065.61,142.51,130.21,155.51,165.41,150.71,171.0 I ess: 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 94.3 100.5 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 98.6 113.0 134.6 130.6 138.7 145.8 158.7 170.9 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 42.7 43.6 43.7 45.0 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 34.0 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 96.0 227.6 808.3 864.0 944.91,055.01,150.51,134.61,168.21,186.91,193.41,220.5 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 92.7 206.9 691.7 746.4 802.5 903.7 979.7 966.5 993.11,008.81,015.51,078.5 Less: Personal outlays.................................... 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 894.9 927.6 922.3 939.5 964.7 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 869.1 901.3 895.8 913.2 938.6 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 25.2 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 75.9 113.8 Disposable personal income in constant (1958) dollars........................................................... 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 603.5 602,9 594.8 591.0 620.2 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 1973 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Total personal income.............. 1,055.01,,150.5 ,159.5 ,167.21,178.01,185.0 ,184.5 ,191.0 ,191.11,193.4 ,195.7 ,203.11,214.31,244.11,238.4 Wage and salary disbursements...691.7 751.2 759.7 761.6 767.7 773.0 767.8 766.6 765.7 763.6 766.0 768.0 772.9 778.1 781.0 Commodity-producing in­ dustries............................251.9 270.9 273.3 276.5 278.3 279.5 272.3 269.3 266.4 260.7 260.5 261.2 262.2 264. 266.2 Manufacturing only............196.6 211.3 214.0 215.5 217.8 219.4 214.2 209.7 206.4 202.9 203.1 203.8 204.5 206. 208.2 Distributive industries. . .. 165.1 178.9 180.8 180.7 183.1 183.8 183.9 183. 183.2 184.0 183.8 184.3 186.1 187. 187.4 Service industries...................128.2 142.6 143.5 144.9 146.4 146.9 147.4 148.3 149.8 151.2 152.6 152.4 153.5 154. 154.9 Government...........................146.6 158.8 162.1 159.5 159.9 162.8 164.2 165.2 166.2 167.6 169.2 170.3 171.1 171. 172.6 Other labor income...................46.0 51.4 51.7 52.3 52.9 53.5 54.0 54.5 54.9 55.3 55.7 56.2 56.7 57.2 57.7 Proprietors’income...................96.1 93.0 90.0 93.1 93.2 91.7 91.6 91.5 88.7 85.0 80.9 83.6 86.4 Business and professional... 57.6 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. 64.1 Farm.......................................38.5 31.8 28.1 30.6 30.7 29.2 29.1 29.0 26.0 22.2 18.4 20.6 23.0 24. 27.4 Rental income.............................26.1 26.5 26.6 26.6 26.6 26.7 26.8 26.9 27.0 27.0 27.0 27.1 27.1 27. 27.2 Dividends..................................29.6 32.7 33.1 33.2 33.4 33.5 33.6 32.7 33.9 33.8 33.7 33.9 34.0 34. 34.2 Personal interest income...........90.6 103.8 104.4 105.3 106.9 108.0 109.5 111.1 111.9 112.5 113.3 114.8 116.9 119. 120.3 Transfer payments....................117.8 139.8 142.5 143.6 146.0 147.6 149.8 156.1 158.6 165.5 168.3 168.9 169.9 190. 176.6 Less: Personal contributions for social insurance___ 42.8 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 50.1 Nonagricultural income.......... 1,008.01,109.0 ,121.7 ,126.81,137.41,145.71,145.2 ,151.41,154.31,160.11,166.21,171.11,179.71,207.91.,199.0 Agricultural income................ 47.0 41.5 37.1 40.4 40.6 39.3 39.3 39.5 36.8 33.3 29.6 32.1 34.6 36.2 39.3 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 □ SEPTEMBER 1975 SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974r 1975 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974r HI H2 HI Credit market funds raised by nonfinancial sectors 1 67.9 82.4 96.0 91.8 98.2 147.4 169.4 187.4 180.1 187.3 172.4 188.4 1 2 Excluding equities................................................ 66.9 80.0 96.0 87.9 92.4 135.9 158.9 180.1 176.2 181.9 170.0 179.6 2 3 U.S. Government....................................................... 3.6 13.0 13.4 -3.7 12.8 25.5 17.3 9.7 12.0 5.1 18.9 81.4 3 4 Public debt securities.............................................. 2.3 8.9 10.4 -1.3 12.9 26.0 13.9 7.7 12.0 3.9 20.2 82.6 4 5 Agency issues and mortgages................................ 1.3 4.1 3.1 -2.4 -.1 -.5 3.4 2.0 * 1.2 -1.3 -1.2 5 6 64.3 69.4 82.6 95.5 85.4 121.9 152.1 177.6 168.1 182.2 153.4 107.0 6 7 Corporate equities................................................. 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 3.8 5.4 2.3 8.8 7 8 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 164.2 176.8 151.1 98.2 8 Private domestic 9 Nonfinancial sectors...................................... 62.7 65.4 79.7 91.8 82.7 117.3 147.8 170.1 152.7 162.2 142.6 100.1 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 8.7 10 11 61.5 63.0 79.9 88.4 77.0 105.8 136.9 162.7 148.6 156.6 140.0 91.4 11 12 Debt capital instruments................................ 38.2 44.5 49.5 49.6 56.7 83.2 93.8 96.1 92.9 99.6 86.2 106.9 12 13 State and local obligations......................... 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 17.4 13 14 Corporate bonds......................................... 10.2 14.7 12.9 12.0 19.8 18.8 12.2 9.2 19.7 18.1 21.3 38.2 14 15 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.7 35.8 27.6 34.3 15 16 Multifamily residential mortgages.............. 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.8 7.3 8.2 6.2 16 17 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.5 15.7 7.2 5.7 17 18 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.9 4.5 5.4 5.1 18 19 Other debt instruments.................................. 23.3 18.5 30.4 38.8 20.3 22.6 43.0 66.6 55.6 57.0 53.8 -15.4 19 20 Consumer credit.......................................... 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 9.6 12.7 6.1 -.6 20 21 Bank loans n.e.c.......................................... 10.9 9.8 13.6 15.5 6.7 7.8 18.9 35.8 27.3 32.6 21.9 -16.1 21 22 Open-market paper..................................... 1.1 1.7 1.8 3.0 3.0 -1.2 -.5 -.4 6.6 5.1 8.2 -1.5 22 23 Other............................................................ 5.0 2.6 5.0 9.9 4.6 4.8 5.5 8.3 12.1 6.6 17.5 2.8 23 24 By borrowing sector:.......................................... 62.7 65.4 79.7 91.8 82.7 117.3 147.8 170.1 152.7 162.2 142.6 100.1 24 25 State and local governments.......................... 6.3 7.9 9.8 10.7 11.3 17.8 14.2 12.3 16.6 16.4 16.7 14.0 25 26 Households...................................................... 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 44.0 47.5 40.0 37.5 26 27 Farm................................................................ 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.8 7.7 7.9 6.9 27 28 Nonfarm noncorporate.................................. 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 7.2 7.1 7.3 3.2 28 29 Corporate........................................................ 25.3 29.6 31.6 38.9 39.5 46.8 55.3 67.1 77.1 83.5 70.7 38.6 29 30 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.4 20.0 10.9 6.9 30 31 Corporate equities.............................................. -.3 .1 .2 .5 .1 * -.4 -.2 -.3 -.2 -.3 .1 31 32 Debt instruments.................................................. 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 20.2 11.1 6.8 32 33 Bonds............................................................... .7 1.2 1.1 1.0 .9 .9 1.0 1.0 2.2 2.1 2.3 5.0 33 34 Bank loans n.e.c.............................................. -.2 -.3 -.5 -.2 -.3 1.6 2.9 2.8 4.7 9.6 -.2 -.5 34 35 Open-market paper........................................ -.1 .5 -.2 .3 .8 .3 -1.0 2.2 7.1 7.0 7.1 -.4 35 36 U.S. Government loans................................. 1 .3 2.6 2.2 2.1 1.3 1.8 1.8 1.7 1.7 1.5 1 .8 2.7 36 37 Memo: U.S. Govt, cash balance............................... -.4 1.2 -1 .1 .4 2.8 3.2 -.3 -1.7 -4.6 -2.0 -7.1 3.1 37 Totals net of changes in U.S. Govt, cash balances— 38 Total funds raised...................................................... 68.3 81 .3 97.1 91.4 95.5 144.2 169.7 189.0 184.7 189.3 179.5 185.3 38 39 By U.S. Government.............................................. 4.0 11.8 14.6 -4.1 10.0 22.3 17.6 11.4 16.6 7.1 26.0 78.2 39 Credit market funds raised by financial sectors 1 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 40.8 35.2 4.2 1 2 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 27.4 8.0 2 3 5.1 -.6 3.2 9.1 8.2 3.8 6.2 19.6 21.4 16.8 26.0 6.9 3 4 Loans from U.S. Government........................... -.2 -.1 .2 -.3 .7 1.4 1.1 4 5 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 24.1 7.8 -3.8 5 6 Corporate equities.............................................. 3.7 3.0 6.4 6.1 4.6 3.3 2.4 .8 1.7 .5 3.0 3.8 6 7 Debt instruments.................................................. 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.2 23.6 4.8 -7.6 7 8 .9 1.3 1.1 1.5 3.1 5.1 7.0 2.3 1 .4 2.0 .9 2.3 8 9 -.9 1.0 .4 .2 .7 2.1 1.7 -1.2 -1.3 .1 -2.7 1.7 9 10 Bank loans n.e.c.............................................. -1.0 -2.0 2.5 2.3 -.5 3.0 6.8 13.5 7.5 8.9 6.2 -8.8 10 11 Open-market paper and RP’s........................ 3.3 1.9 3.6 10.7 -5.0 1.8 4.9 9.8 -.1 5.8 -6.0 5.3 11 12 Loans from FHLB’s...................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 -8.1 12 13 Total funds raised, by sector...................................... 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 40.8 35.2 4.2 13 14 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 27.4 8.0 14 15 Private financial sectors......................................... 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 24.1 7.8 -3.8 15 16 Commercial banks.............................................. -.1 .1 1.2 1 .4 -3.1 2.5 4.0 4.5 -1.9 2.6 -6.4 5.8 16 17 Bank affiliates...................................................... 4.2 -1.9 -.4 .7 2.2 2.4 4.1 .7 .9 17 18 Foreign banking agencies................................... .1 * .1 .2 .1 1.6 .8 5.1 2.9 2.7 3.1 -.9 18 19 Savings and loan associations........................... .1 -1.7 1.1 4.1 1 .8 -.1 2.0 6.0 6.3 8.6 4.0 -8.0 19 20 Other insurance companies................................ .1 .1 .2 .5 .4 .6 .5 .5 .4 .4 .3 .3 20 21 Finance companies............................................. 3.1 1.2 5.7 8.3 1.6 4.2 9.3 9.4 3.9 3.6 4.2 -3.4 21 22 REITS.................................................................. .7 1.3 2.7 3.0 6.1 6.3 1.0 2.8 -.9 -1.3 22 23 Open-end investment companies....................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 2.9 23 Total credit market funds raised, all sectors, by type 1 Total funds raised....................................................... 79.6 84.4 114.3 125.5 110.8 163.9 198.3 239.4 218.1 228.1 207.6 192.6 1 2 Investment company shares................................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 2.9 2 3 Other corporate equities........................................ 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 6.7 2.5 9.7 3 4 Debt instruments..................................................... 74.9 79.0 107.9 115.5 100.4 149.1 185.4 231.3 212.5 222.2 202.3 179.9 4 5 U.S. Government securities............................... 8.8 12.5 16.7 5.5 21.1 29.4 23.6 29.4 33.5 21.9 45.1 88.2 5 6 State and local obligations................................ 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 17.4 6 7 Corporate and foreign bonds............................ 11.8 17.2 15.0 14.5 23.8 24.8 20.2 12.5 23.3 22.2 24.5 45.5 7 8 Mortgages........................................................... 21.3 23.0 27.4 27.8 26.4 48.9 68.8 71.9 54.5 63.4 45.6 52.9 8 9 Consumer credit................................................. 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 9.6 12.7 6.1 -.6 9 10 Bank loans n.e.c.................................................. 9.7 7.5 15.7 17.6 5.8 12.4 28.5 52.1 39.5 51.1 27.9 -25.4 10 11 Open-market paper and RP’s............................ 4.4 4.0 5.2 14.1 -1.2 .9 3.3 11.6 13.6 17.8 9.4 3.3 11 12 Other loans.......................................................... 6.9 2.5 8.3 15.8 7.3 4.0 7.4 17.2 21.1 14.9 27.2 -1.5 12 Digitized for FRASENRo te.—Full statements for sectors and transaction types quarterly, and Flow of Funds Section, Division of Research and Statistics, Board of annually 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

SEPTEMBER 1975 □ FLOW OF FUNDS A 57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1974 ' 1975 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974' HI H2 HI 1 Total funds advanced in credit markets to 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 176.0 181.9 170.0 179.6 1 By public agencies and foreign 2 Total net advances...................................................... 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 49.2 39.5 58.9 36.1 2 3 U.S. Government securities................................... 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.6 6.9 10.4 27.6 3 4 Residential mortgages............................................ 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.8 11.7 15.9 16.8 4 5 FHLB advances to S&L’s...................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 -8.1 5 6 Other loans and securities..................................... 4.8 4.9 5.1 6.3 5.2 4.9 4.6 7.5 20.1 14.1 26.1 -.3 6 By agency— 7 U.S. Government.................................................... 4.9 4.6 4.9 2.9 2.8 3.2 2.6 3.0 7.4 2.4 12.4 12.3 7 8 Sponsored credit agencies...................................... 5.1 -.1 3.2 8.9 10.0 3.2 7.0 20.3 24.1 20.5 27.6 10.1 8 9 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 6.2 6.1 6.2 6.9 9 10 Foreign.................................................................... -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 10.5 12.6 6.8 10 11 Agency borrowing not included in line 1................. 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 16.8 27.4 8.0 11 Private doirestic funds advanced 12 Total net advances...................................................... 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 148.8 159.2 138.5 151.5 12 13 U.S. Government securities................................... 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 24.9 15.0 34.7 60.6 13 14 State and local obligations..................................... 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 18.3 16.5 17.4 14 15 Corporate and foreign bonds................................ 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 20.6 19.2 21.9 43.1 15 16 Residential mortgages............................................ 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.6 31.4 19.8 23.6 16 17 Other mortgages and loans................................... 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 67.1 82.1 52.2 -1.3 17 18 Less: FHLB advances............................................ .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 6.8 6.5 -8.1 18 Private financial intermediation 19 Credit market funds advanced by private financial 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.3 155.7 106.9 115.0 19 20 Commercial banking.............................................. 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 64.4 87.5 41.3 17.4 20 21 Savings institutions................................................ 7.9 15.0 15.6 14.5 16.9 41.4 49.3 35.1 26.9 35.4 18.3 61.6 21 22 Insurance and pension funds................................. 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.3 29.1 39.4 34.8 22 23 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.8 3.7 7.9 1.1 23 24 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.3 155.7 106.9 115.0 24 25 Private domestic deposits....................................... 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 72.4 93.7 51.1 98.6 25 26 Credit market borrowing...................................... 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.2 23.6 4.8 -7.6 26 27 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 44.7 38.4 50.9 24.0 27 28 Foreign funds...................................................... 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 13.6 10.7 16.4 -5.4 28 29 Treasury balances............................................... -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -5.1 -2.1 -8.1 -1.9 29 30 Insurance and pension reserves......................... 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 27.9 22.7 33.2 26.5 30 31 Other, net............................................................ 3.0 -.6 7.2 13.8 4.4 2.9 16.5 20.2 8.3 7.1 9.4 4.7 31 Private domestic nonfinancial investors 32 Direct lending in credit markets............................... 17.6 4.2 20.4 44.5 -2.6 -3.2 13.7 39.3 31.7 27.0 36.4 28.9 32 33 U.S. Government securities................................... 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 18.1 13.7 22.6 -5.0 33 34 State and local obligations..................................... 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 10.8 8.3 13.3 13.5 34 35 Corporate and foreign bonds................................ 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -1.7 -1.4 -1.9 14.9 35 36 Commercial paper.................................................. 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 1.6 4.3 -1.0 2.7 36 37 2.3 1.7 2.1 2.0 1.4 1.5 .8 3.8 2.9 2.2 3.5 2.8 37 38 Deposits and currency................................................ 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 78.7 102.3 55.2 105.9 38 39 Time and savings accounts.................................... 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 71.9 89.0 54.8 87.7 39 40 Large negotiable CD’s....................................... -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 23.6 30.0 17.2 -22.0 40 41 Other at commercial banks............................... 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 26.6 32.4 20.7 39.3 41 42 At savings institutions........................................ 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 21.7 26.6 16.9 70.4 42 43 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 6.8 13.3 .4 18.1 43 44 Demand deposits................................................ 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 .5 4.8 -3.7 10.9 44 45 Currency.............................................................. 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.3 8.5 4.1 7.3 45 46 Total of credit market instr., deposits, and currency. 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 110.5 129.3 91.6 134.8 46 47 Public support rate (in per cent)........................... 17.9 14.1 12.7 17.8 30.4 30.7 11.5 18.4 28.0 21.7 34.6 20.1 47 48 Private financial intermediation (in per cent)........ 75.9 93.2 86.4 68.3 103.1 112.8 104.5 95.4 88.2 97.8 77.2 75.9 48 49 Total foreign funds................................................ 2.1 4.3 2.9 9.1 1.8 23.2 13.6 7.2 25.1 21.2 29.0 1.4 49 Corporate equities not included above 1 Total net issues........................................................... 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 5.6 5.9 5.3 12.7 1 2 Mutual fund shares................................................ 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 -.8 2.8 2.9 2 3 Other equities......................................................... 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 6.7 2.5 9.7 3 4 Acquisitions by financial institutions....................... 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 6.1 8.5 3.6 11.1 4 5 Other net purchases.................................................... -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 -.5 -2.7 1.7 1.6 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-56. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 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 I II III IV I p 1 Merchandise trade balance 1...................................................... -6,409 955 -5,528 -200 -1,537 -2,341 -1,450 1,841 2 49,388 71,379 98,268 22,451 24,206 25,026 26,585 27,222 3 -55,797 -70,424 -103,796 -22,651 -25,743 -27,367 -28,035 -25,381 4 Military transactions, net........................................................... -3,621 -2,317 -2,158 -503 -646 -513 -498 -347 5 Travel and transportation, net.................................................. -3,024 -2,862 -2,692 -513 -111 -721 -741 -507 6 Investment income, net 2............................................................ 4,321 5,179 10,121 3,245 1,964 2,354 2,559 1,325 7 U.S. direct investments abroad 2...................................... 6,416 8,841 17,679 4,500 4,399 4,700 4,080 2,189 ft Other U.S. investments abroad.......................................... 3,746 5,157 8,389 1,629 2,048 2,354 2,358 2,157 9 Foreign investments in the United States 2..................... -5,841 -8,819 -15,946 -2,884 -4,483 -4,700 -3,879 -3,021 10 Other services, net 2................................................................... 2,803 3,222 3,830 886 936 960 1,049 1,032 11 Balance on goods and services 3........................................................ -5,930 4,177 3,574 2,915 * -261 919 3,344 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 3,857 -472 -3,366 1,834 3,959 14 U.S. Government grants (excluding military)........................... -2,173 -1,938 -5,461 4-2,596 -1,408 -808 -649 -738 15 Balance on current account................................................................. -9,710 335 -3,608 4-51 -1,865 -1,526 -169 2,148 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 27 Nonliquid short-term private capital flows, net....................... -1,542 -4,238 -12,949 -3,908 -5,248 -1,462 -2,331 1,702 2ft Claims reported by U.S. banks.......................................... -1,457 -3,886 -12,186 -2,817 -5,319 -1,618 -2,432 1,895 29 Claims reported by U.S. nonbanking concerns................ -306 -1,183 -2,603 -1,508 -682 -276 -137 -95 30 Liabilities reported by U.S. nonbanking concerns........... 221 831 1,840 417 753 432 238 -98 31 Allocations of Special Drawing Rights (SDR’s)...................... 710 32 Errors and omissions, net.......................................................... -1,884 -2,436 4,834 1,085 1,416 1,153 1,179 1,844 33 -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 -1,247 -1,951 -6,113 -2,620 -1,297 -228 -1,968 -A,152 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 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 ®........................................................................................ 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 -2 443 -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 -1 -85 -152 241 -14 50 Gold tranche position in IMF........................................... 153 -33 -1,265 -209 -244 -728 -84 -307 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................... 4,492 2,809 1,811 406 564 352 490 783 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. 4,521 8,124 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)..................................... 548 945 Balances excluding allocations of SDR’s: 54 Net liquidity, not seasonally adjusted.................................. -14,539 -7,651 -19,043 -244 -6,654 -5,551 -6,594 4,204 55 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

SEPTEMBER 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS A 59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Imports 2 Trade balance 1972 1973 1974 1975 1972 1973 19743 1975 1972 1973 19743 1975 Month: Jan... 4.074 4,955 7,150 9,412 4,436 5,244 6,498 9,622 -361 -289 +652 -211 Feb.., 3,824 5,070 7,549 8,789 4,473 5,483 7,318 7,872 -649 -413 +231 +917 Mar... 3,869 5,311 7,625 8,716 4,515 5,414 7,742 7,336 -647 -103 -117 + 1,380 Apr... 3,820 5,494 8,108 8,570 4,417 5,360 8,025 8,013 -596 + 133 +83 +557 May.. 3,882 5,561 7,652 8,145 4,486 5,703 8,265 7,093 -604 -142 -612 + 1,052 June.. 3,971 5,728 8,317 8,692 4,468 5,775 8,577 6,954 -497 -47 -260 + 1,737 July... 4.074 5,865 8,307 8,885 4,565 5,829 8,922 7,908 -491 + 37 -615 +977 Aug... 4,191 6,042 8,379 4,726 6,011 9,267 -535 + 32 -888 Sept... 4,176 6,420 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 l 2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i n e t F i r o v n e SDR’s 3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo u C e c r r i r o e e t r i i e n s b g 4 n ­ l n e ­ p R o e I s M s i i n e ti r F o v n e SDR’s3 1961... 18,753 16,947 16,889 116 1,690 1974 1962... 17,220 16,057 15,978 99 1,064 Aug. . 15,460 11,652 11,567 224 1,384 2,200 1963... 16,843 15,596 15,513 212 1,035 Sept... 15,893 11,652 11,567 246 1,713 2,282 1964. .. 16,672 15,471 15,388 432 769 Oct.. . 15,890 11,652 11,567 193 1,739 2,306 Nov... 15,840 11,652 11,567 43 1,816 2,329 1965... 15,450 13,806 13,733 781 863 Dec... 15,883 11,652 11,652 5 1,852 2,374 1966... 14,882 13,235 13,159 1,321 326 1967.. . 14,830 12,065 11,982 2,345 420 1975— 1968.. . 15,710 10,892 10.367 3,528 1,290 Jan.. . . 15,948 11,635 11,635 2 1,908 2,403 1969.. . 5 16,964 11,859 10.367 52,781 2,324 16,132 11,621 11,621 2 2,065 2,444 16,256 11,620 11,620 19 2,194 2,423 1970... 14,487 11,072 10,732 629 1,935 851 16,183 11,620 11,620 2 2,168 2,393 1971 ... 612,167 10,206 10,132 6 276 585 1,100 May 16,280 11,620 11,620 4 2,218 2,438 19727. . 13,151 10,487 10,410 241 465 1,958 June..., 16,242 11,620 11,620 25 2,179 2,418 19738 . . 14,378 11,652 11,567 8 552 2,166 July___ 16,084 11,618 11,618 2 2,135 2,329 1974.. . 15,883 11,652 11,652 5 1,852 2,374 Aug----- 16,115 11,599 11,599 26 9 2,169 9 2,321 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 Aug. amounted to $2,381 million reserve position in IMF, $2,209 at time of revaluation. million, and total U.S. reserve assets, $16,215. 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 □ SEPTEMBER 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—July., 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Aug.. 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Sept., 49,830 6.478 11.652 31,700 231 169 312 882 1.781 927 97 76 103 Oct.. 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Nov., 6.478 11.652 231 169 312 882 1.781 927 97 76 103 Dec.. 49,790 6.478 11.652 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 Mar.. 49,760 6.478 11,620 31,660 231 169 312 882 1.781 927 97 76 Apr... 6.478 11,620 231 169 312 882 1.781 927 97 76 May. . 6.478 11,620 231 169 312 882 1.781 927 97 76 June., ^49 j 760 6.478 11,620 ^31,660 231 312 882 1.781 927 97 76 July p. 6.478 11,618 312 882 1.781 927 97 76 Ger­ End of France many, Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi- Netherperiod Fed. anon lands Rep. of 197 0 . 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 197 1 . 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 197 2 3,826 4,459 133 264 142 156 3,130 80 94 350 93 188 2,059 197 3 4.261 4.966 148 293 159 173 3.483 89 120 388 103 196 2.294 1974—July. 4.262 4.966 150 293 158 173 3.483 89 130 389 105 154 2.294 Aug.. 4.262 4.966 150 293 158 173 3.483 89 130 389 107 154 2.294 Sept. 4.262 4.966 150 293 158 173 3.483 89 130 389 103 154 2.294 Oct.. 4.262 4.966 150 293 158 173 3.483 89 138 389 103 154 2.294 Nov. 4.262 4.966 150 293 158 173 3.483 89 138 389 103 154 2.294 Dec.. 4.262 4.966 150 293 158 173 3.483 148 389 103 154 2.294 1975—Jan.. 4.262 4.966 150 293 158 173 3.483 140 389 103 154 2.294 Feb.. 4.262 4.966 150 293 158 173 3.483 140 389 103 154 2.294 Mar. 4.262 4.966 150 293 158 173 3.483 154 389 103 154 2.294 Apr.. 4.262 4.966 150 293 158 173 3.483 154 389 103 154 2.294 May. 4.262 4.966 150 293 158 173 3.483 175 389 103 2.294 June. 4.262 4.966 150 293 158 173 3.483 154 389 103 2.294 JulyP 4.262 4.966 150 3.483 154 389 103 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—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 1,175 129 742 602 244 3,513 99 151 148 472 239 67 1,175 129 734 602 244 3,513 99 151 472 262 julyP........... 129 742 244 3,513 99 264 1 Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank’s gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ countries. tries, and People’s Republic of China. 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

SEPTEMBER 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 9 5,817 3,387 3,046 341 1,965 19649..................... / 1 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , , 7 78 9 6 0 1 1 3 3 , , 2 2 2 2 4 0 1 1 , , 1 1 2 2 5 5 1 1 , , 2 28 8 3 3 1 15 58 8 7 7 , , 3 27 0 1 3 3 3 , , 7 7 5 3 3 0 3 3 , , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 , ,7 7 2 2 2 2 1965r..................... 29,568 834 15,825 13,066 1,105 1,534 120 7,419 4,059 3,587 472 1,431 19669r................... / 1 3 3 1 1 , , 1 0 4 1 4 9 1 1 , , 0 0 1 11 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 58 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 74 4 3 4 5 5 2 2 8 8 9 9 0 0 5 6 /35,819 1,033 18,201 14,034 908 1,452 1,807 11,209 4,685 4,127 558 691 19679..................... 135,667 1,033 18,194 14,027 908 1,452 1,807 11,085 4,678 4,120 558 677 19689..................... J 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 31 18 8 4 5 6 29 2 3 3, , 2 2 1 1 9 9 2 2 , , 3 34 41 1 1 1 4 4 , ,4 4 7 72 2 4 5 , , 9 0 0 53 9 4 4 , ,4 44 44 4 4 6 6 0 5 9 7 7 2 2 5 2 19699..................... io 1 /4 4 5 5 , , 7 9 5 1 5 4 1 1 , , 1 0 0 19 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 , , 4 58 6 9 4 4 3 , , 0 9 6 39 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 33 33 3 2 3 9 0 5 6 3 3 , , 4 4 5 5 2 2 6 6 9 95 5 1 1 7 7 , , 1 1 3 69 7 4 4, , 6 67 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 65 7 8 8 4 4 6 4 (67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 1971—Dec. ii........ 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 1972—Dec............. 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec.r.......... 92,456 66,827 43,923 5,701 15,530 1,673 17,694 5,932 5,502 430 2,003 1974—July r.......... 107,163 71,131 48,455 5,013 15.985 1,678 26,821 7,312 6,935 377 1,899 Aug.r.......... 110,080 71,083 48,481 4,940 15.985 1,677 29,384 7,495 7,129 366 2,178 Sept.r......... 110,810 72,730 50,149 4.880 15.985 1,716 28,056 8,010 7,617 393 2,014 Oct.r.......... 112,137 73,836 50,921 4.880 16.196 1,839 28,095 8,058 7,627 439 2,148 Nov.r......... 115,698 75,200 51,860 4,906 16.196 2,238 29,782 8,336 7,855 481 2,503 Dec.r.......... 119,097 76,658 53,057 5,059 16.196 2,346 30,314 8,803 8,305 498 3,322 1975—Jan.r.......... 118,189 75,960 51,832 5,177 16.324 2,627 29,414 8,629 8,121 508 4,186 Feb.r.......... 119,584 78,689 54,310 5,279 16.324 2,776 27,629 9,015 8,405 610 4,251 Mar.r......... 120,170 79,210 53,696 6,003 16.324 3,187 27,773 9,004 8,368 636 4,183 Apr.r.......... 121,163 79,081 53,521 5,941 16,365 3,254 29,194 8,809 8,154 655 4,079 May............ 121,627 79,751 52,351 6,064 17,925 3,411 62238,588 9,049 8,426 4,239 June*.......... 121,709 80,468 51,814 6,119 19,027 3,508 28,616* 9,109 8,455 654 3,516 July*.......... 122,576 79,600 50,203 6,160 19,474 3,763 29,666 9,032 8,322 710 4,278 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 letters 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. o SEPTEMBER 1975 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe i 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 66,827 45,730 3,853 2,544 10,887 788 3,025 1974—Julyr. 71,131 43,016 4,125 3,951 15,235 2,055 2,748 Aug.r. 71,083 42,347 3,953 4,157 15.554 2,272 2,800 Sept.r 72,730 42,662 3,819 4,445 16.299 2,850 2,655 Oct.r. 73,836 43,019 3,805 4,046 17,329 2,947 2,690 Nov.r 75,200 43,193 3,705 3,768 18,673 3,204 2,657 Dec.r. 76,658 44,185 3,662 4,419 18,604 3,161 2,627 1975—Jan. 75,960 43,331 3,621 3,659 19.555 3,232 2,562 Feb.r. 78,689 44,770 3,616 4,223 20,274 3,356 2,450 Mar.r 79,210 45,776 3,546 4,390 19,441 3,433 2,624 Apr.r. 79,081 45,059 3,251 4,506 20,062 3,493 2,710 May.. 79,751 45,262 3,101 4,600 20,423 3,448 2,917 June*. 80,468 45,211 3,008 4,723 20,457 3,800 3,269 July*. 79,600 44,137 2,966 4,747 21.299 3,319 3,132 1 Includes Bank for International Settlements and European Fund. foreign official holdings of marketable and nonmarketable U.S. Treasury 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ securities with an original maturity of more than 1 year, except for non­ pean dependencies in Latin America. marketable notes issued to foreign official nonreserve agencies; and in­ vestments by foreign official reserve agencies in debt securities of U.S. Note.—Data represent short- and long-term liabilities to the official Federally-sponsored agencies and U.S. corporations. institutions of foreign countries, as reported by banks in the United States; 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 6 IMF Payable in dollars gold Deposits Payable invest­ U.S. End of period in ment5 Treasury Other Total i Deposits U.S. Other foreign Total bills and short­ Treasury short­ cur­ certifi­ term Total bills and term rencies Demand Time2 cates liab. 7 Demand Time2 certifi­ liab.4 cates 3 197 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—July r. 83,956 83,290 12,222 8,643 34,178 28,246 666 1,745 121 66 51 1,508 Aug.r 86,916 86,170 11,841 9,103 33,179 32,047 746 1,921 81 68 146 1,627 Sept.r 87,722 87,026 12,769 9,252 33,467 31,539 696 1,900 128 69 75 1,629 Oct.r. 88,642 87,924 11,228 9,822 34,187 32,686 719 2,000 125 92 93 1,690 Nov.r 91,835 91,091 12,860 9,567 35,212 33,452 744 2,339 128 95 285 1,830 Dec.r, 94,847 94,081 14,068 10,106 35,662 34,246 766 3,171 139 111 497 2,424 1975—Jan. 93,285 92,564 12,288 10,155 38,108 32,013 721 3,918 123 111 1,234 2,450 Feb.r. 94,317 93,584 12,139 10,308 40,428 30,708 733 3,973 118 102 1,260 2,492 Mar.r 93,322 92,640 12,324 10,143 40,094 30,080 682 3,485 189 116 777 2,402 Apr.r 94,460 93,719 11,699 10,390 40,424 31,206 742 3,592 99 126 781 2,585 May. 93,204 92,539 11,925 10,374 40,628 29,612 665 3,839 115 133 1,994 1,598 June* 92,327 91,744 12,598 10,458 38,278 30,409 584 3,442 108 133 996 2,205 July*. 92,300 91,659 12,222 10,302 38,553 30,583 640 4,109 146 134 2,518 1,311 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 7 cates 3 cates 3 1971........................ 53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972....................... 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 171 1973....................... 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 127 1974—Julyr........... 82,211 12,102 8,578 34,128 26,738 666 48,455 2,562 4,445 33,749 7,571 127 Aug.r.......... 84,994 11,760 9,035 33,033 30,421 746 48,481 2,474 4,429 32,687 8,764 127 Sept.r.......... 85,822 12,641 9,183 33,392 29,910 696 50,149 2,825 4,282 32,955 9,960 127 Oct.r........... 86,643 11,104 9,730 34,094 30,996 719 50,921 2,168 4,400 33,634 10,591 127 Nov.r.......... 89,497 12,732 9,472 34,927 31,622 744 51,860 2,472 4,058 34,467 10,736 127 Dec.r.......... 91,676 13,928 9,995 35,165 31,822 766 53,057 2,951 4,257 34,656 11,066 127 1975—Jan.r........... 89,367 12,165 10,044 36,874 29,563 721 51,832 2,185 4,296 36,531 8,821 Feb.r.......... 90,344 12,021 10,206 39,169 28,216 733 54,310 2,058 4,306 38,840 9,106 Mar.r.......... 89,837 12,135 10,027 39,316 27,677 682 53,696 2,323 4,303 39,015 8,054 Apr.r.......... 90,869 11,600 10,264 39,643 28,620 742 53,521 2,147 4,193 39,316 7,864 May............ 89,365 11,811 10,241 38,634 28,015 665 52,351 2,175 4,331 38,372 7,473 Junep.......... 88,885 12,490 10,325 37,282 28,204 584 51,814 2,564 4,243 37,007 8,000 July?........... 88,191 12,076 10,167 36,035 29,272 640 50,203 2,492 4,033 35,803 7,875 To banks9 To other foreigners To banks Payable in dollars and othei foreigners End of period Total Payable ir Deposits U.S. Other Deposits U.S. Other foreign Treasury short­ Treasury short­ cur­ Total bills and term Total bills and term rencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 7 cates cates 1971....................... 14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 1972....................... 19,284 14,340 4,658 405 5 9,272 4,618 1,955 2,116 65 481 325 1973....................... 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1974—July'........... 33,757 26,282 7,105 1,165 204 17,808 6,936 2,435 2,967 175 1,359 539 Aug.r......... 36,513 28,766 6,890 1,456 200 20,220 7,129 2,396 3,150 145 1,437 618 Sept.r.......... 35,673 27,488 7,096 1,637 258 i8,497 7,617 2,721 3,264 179 1,454 568 Oct.r.......... 35,722 27,504 6,361 1,908 268 18,967 7,626 2,574 3,422 193 1,438 591 Nov.r.......... 37,637 29,166 7,622 1,807 253 19,484 7,855 2,638 3,608 207 1,402 617 Dec.r.......... 38,619 29,676 8,248 1,942 232 19,254 8,304 2,729 3,796 277 1,502 639 1975—Jan.'........... 37,534 28,693 7,355 1,989 158 19,192 8,121 2,625 3,760 186 1,550 721 Feb.r.......... 36,035 26,896 7,142 2,039 129 17,586 8,405 2,820 3,861 200 1,524 733 Mar.r.......... 36,142 27,092 7,072 1,808 101 18,111 8,368 2,740 3,916 200 1,512 682 Apr.r.......... 37,348 28,453 6,897 2,102 107 19,347 8,154 2,556 3,969 220 1,409 742 May............ 37,014 27,923 6,852 1,821 105 19,144 8,426 2,784 4,089 156 1,398 665 June^.......... 37,071 28,033 7,067 1,949 99 18,918 8,454 2,859 4,133 176 1,286 584 July?........... 37,988 29,025 6,889 2,028 80 20,029 8,322 2,696 4,107 152 1,367 640 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. □ SEPTEMBER 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. Oct.r Nov.r Dec.r Jan.r Feb.r Mar.r Apr.r May June? July* Europe: 161 568 557 607 597 624 599 629 627 627 661 Belgium-Luxembourg.............................. 1,483 2,047 2,295 2,506 2,391 2,647 2,539 2,810 2,875 3,070 2,982 Denmark.................................................. 659 285 338 369 369 324 370 340 323 355 325 165 223 262 266 204 204 202 212 181 365 361 3,483 3,933 3,835 4,287 4,206 4,035 4,226 4,600 4,982 5,397 5,515 13,227 8,623 9,102 9,420 9,948 10,801 11,235 10,229 8,203 6,461 5,440 Greece....................................................... 389 255 213 248 253 242 192 202 273 254 299 Italy.......................................................... 1,404 2,748 2,192 2,617 2,101 2,260 2,449 2,498 2,157 2,298 1,427 Netherlands.............................................. 2,886 3,009 3,177 3,234 3,208 3,197 3,414 3,302 3,351 3,535 3,535 965 1,131 1,181 1,040 874 826 843 827 846 945, 1,118 534 411 338 310 310 303 288 247 267 264 280 305 347 332 382 379 320 358 361 341 362 392 Sweden...................................................... 1,885 1,071 1,103 1,138 1,132 1,215 1,209 1,477 1,697 1,847 2,010 Switzerland............................................... 3,377 8,974 9,378 9,986 9,517 9,407 8,802 8,747 8,553 8,458 7,997 98 121 102 152 169 131 243 103 87 124 106 United Kingdom..................................... 6,148 7,582 8,198 7,559 6,671 6,205 7,025 7,039 6,980 6,403 6,447 Yugoslavia................................................ 86 136 105 183 187 168 158 122 126 83 106 Other Western Europe1.......................... 3,352 3,263 3,434 4,073 3,136 2,934 2,641 2,516 2,467 2,462 2,430 U.S.S.R..................................................... 22 44 33 82 65 59 35 34 61 62 29 Other Eastern Europe............................. 110 136 140 206 172 120 218 123 148 370 185 Total.................................................. 40,742 44,908 46,313 48,667 45,888 46,020 47,045 46,419 44,546 43,744 41,643 Canada.......................................................... 3,627 4,226 3,725 3,517 3,398 3,781 3,448 3,946 3,951 3,617 3,921 Latin America: Argentina.................................................. 924 1,017 938 886 900 894 822 886 964 989 1,061 Bahamas.................................................. 852 1,691 1,747 1,448 2,155 2,046 1,746 2,446 2,045 2,181 2,471 860 894 952 1,034 859 927 1,065 1,077 984 1,081 853 Chile.......................................................... 158 270 297 276 284 281 258 278 260 289 301 Colombia.................................................. 247 292 305 305 319 317 326 313 307 400 375 Cuba.......................................................... 7 6 7 7 6 6 6 6 6 7 7 Mexico...................................................... 1,296 1,731 1,746 1,770 1,747 1,814 1,668 1,727 1,876 1,819 1,794 Panama.................................................... 282 484 474 488 500 476 519 656 514 473 584 135 177 183 272 256 238 225 217 206 219 228 120 128 140 147 152 164 171 174 168 155 190 Venezuela.................................................. 1,468 2,992 2,921 3,413 2,918 3,351 3,501 3,559 3,866 3,726 3,964 Other Latin American republics............. 884 1,113 1,176 1,316 1,211 1,263 1,348 1,401 1,353 1,506 1,410 Netherlands Antilles and Surinam......... 71 138 135 158 155 133 143 113 123 134 107 Other Latin America............................... 359 508 839 519 899 472 501 755 897 984 1,461 7,664 11,442 11,862 12,038 12,361 12,382 12,300 13,610 13,571 13,964 14,807 Asia: China, People’s Rep. of (China Mainland) 38 43 45 50 50 73 62 63 56 65 50 China, Republic of (Taiwan)................... 757 797 808 818 977 1,015 1,037 1,038 999 1,071 1,015 Hong Kong.............................................. 372 470 551 530 558 546 528 543 596 598 540 85 140 156 261 179 177 183 127 168 145 133 Indonesia.................................................. 133 1,600 1,363 1,221 1,327 1,083 497 582 279 365 527 Israel.......................................................... 327 218 279 386 417 473 508 490 536 470 366 Japan........................................................ 6,967 10,407 10,891 10,897 10,442 10,909 11,390 10,993 11,109 11,223 11,669 Korea........................................................ 195 313 309 384 315 327 311 345 341 361 366 Philippines................................................ 515 726 731 747 702 642 745 660 662 697 632 Thailand.................................................... 247 328 333 333 337 327 455 446 342 370 284 Other........................................................ 1,202 4,832 5,681 5,446 6,003 6,136 4,651 4,827 5,176 4,756 5,202 Total.................................................. 10,839 19,874 21,147 21,073 21,307 21,708 20,368 20,112 20,262 20,119 20,785 Africa: Egypt......................................................... 35 109 109 103 105 106 92 112 113 514 253 Morocco.................................................... 11 73 59 38 71 81 65 66 75 75 76 South Africa............................................. 114 138 155 130 150 188 191 159 179 141 132 Zaire.......................................................... 87 41 82 84 66 41 38 57 68 61 53 Other......................................................... 808 2,973 3,199 3,197 3,272 3,392 3,461 3,472 3,460 3,400 3,213 1,056 3,333 3,604 3,551 3,664 3,809 3,848 3,867 3,895 4,192 3,727 Other countries: 3,131 2,788 2,759 2,742 2,661 2,568 2,761 2,856 3,069 3,185 3,231 All other................................................... 59 71 86 89 88 76 66 60 71 64 77 Total.................................................. 3,190 2,859 2,845 2,831 2,748 2,644 2,828 2,916 3,140 3,249 3,308 Total foreign countries................................ 67,119 86,643 89,497 91,676 89,367 90,344 89,837 90,869 89,365 88,885 88,191 International and regional: International 2........................................... 1,627 1,668 2,055 2,900 3,643 3,683 3,222 3,291 3,600 3,205 3,844 Latin American regional......................... 272 232 213 202 226 233 218 211 155 141 175 Other regional 3........................................ 57 100 70 69 50 57 44 90 84 97 90 Total.................................................. 1,955 2,000 2,339 3,171 3,918 3,973 3,485 3,592 3,839 3,442 4,109 Grand total....................................... 69,074 88,642 91,835 94,847 93,285 94,317 93,322 94,460 93,204 92,327 92,300 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 65 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data4 1973 1974 1975 1973 1974 1975 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus....................................... 9 19 10 7 17 Laos................................. 3 3 3 3 5 Iceland....................................... 12 8 11 21 20 Lebanon.......................... 55 62 68 119 180 Ireland, Rep. of........................ 22 62 53 29 29 Malaysia......................... 59 58 40 63 92 Pakistan.......................... 93 105 108 91 118 Other Latin American republics: Singapore........................ 53 141 165 240 215 Bolivia....................................... 65 68 102 96 93 Sri Lanka (Ceylon)........ 6 13 13 14 13 Costa Rica................................ 75 86 88 117 120 Vietnam........................... 98 88 98 126 70 Dominican Republic................ 104 118 137 127 214 Oil-producing countries 5 486 652 1,331 4,640 3,941 Ecuador..................................... 109 92 90 122 157 El Salvador............................... 86 90 129 129 144 Guatemala................................. 127 156 245 214 255 | Haiti........................................... 25 21 28 35 34 Other Africa: Honduras.................................. 64 56 71 88 92 Algeria......................... 51 111 110 67 59 Jamaica..................................... 32 39 52 69 62 Ethiopia (incl. Eritrea) 75 79 118 95 76 Nicaragua................................. 79 99 119 127 125 Ghana......................... 28 20 22 18 13 Paraguay................................... 26 29 40 46 38 Kenya.......................... 19 23 20 31 32 Trinidad and Tobago.............. 17 17 21 107 Liberia......................... 31 42 29 39 33 Libya........................... 312 331 257 452 Other Latin America: Nigeria......................... 140 78 736 2,295 Bermuda.................................... 127 242 201 107 100 Southern Rhodesia... 1 2 1 2 3 British West Indies................... 100 109 354 116 610 Sudan.......................... 3 3 2 4 14 Tanzania..................... 16 12 12 11 21 Other Asia: Tunisia........................ 11 7 17 19 23 Afghanistan............................... 19 22 11 18 19 Uganda....................... 19 6 11 13 Burma........................................ 17 12 42 65 Zambia........................ 37 22 66 22 18 Cambodia................................. 3 2 4 4 Jordan........................................ 4 6 6 22 30 All other: New Zealand.............. 34 39 33 47 36 1 Includes Bank for International Settlements and European Fund. 4 Represent a partial breakdown of the amounts shown in the other 2 Data exclude holdings of dollars of the International Monetary Fund. categories (except “Other Eastern Europe”). 3 Asian, African, and European regional organizations, except BIS and 5 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, European Fund, which are included in “Europe.” Syria, and United Arab Emirates (Trucial States). LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Other Latin Japan Other other tions ers many dom Europe America Asia coun­ tries 1971.............................. 902 446 457 144 257 56 164 52 30 111 3 87 9 1Q70 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—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.r................ 1,548 800 748 426 255 67 137 41 24 120 1 403 21 Apr.................... 1,410 626 784 462 253 68 135 41 25 121 1 439 22 May................... 1,446 585 861 544 248 69 129 41 27 121 1 520 21 June*................ 1,411 518 893 576 247 70 120 59 18 121 1 550 23 July*................. 1,409 438 970 651 242 77 121 61 19 121 1 625 24 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. □ SEPTEMBER 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 July r Aug.r Sept.r Oct.r Nov.r Dec.r Jan.r Feb.r Mar.r Apr.r May June* July* Europe: Belgium-Luxembourg..................... 9 9 10 10 10 10 11 12 14 14 14 14 14 260 260 250 250 276 251 252 252 252 252 251 252 252 35 34 34 30 30 30 31 30 29 32 34 37 37 426 439 459 485 498 493 529 578 599 611 564 522 536 Other Western Europe................... 97 101 96 102 98 97 89 83 287 304 306 306 307 5 5 5 5 5 5 5 5 5 5 5 5 5 832 849 854 883 917 885 916 959 1,186 1,217 1,174 1,135 1,151 851 756 706 707 711 713 697 584 588 460 412 412 408 Latin America: 11 11 11 11 11 12 11 11 11 11 11 13 13 5 5 17 25 62 88 88 148 135 129 122 139 183 16 16 28 36 74 100 99 159 147 140 133 152 196 Asia: 3,497 3,498 3,497 3,497 3,498 3,498 3,498 3,496 3,496 3,496 3,496 3,496 3,496 12 12 12 12 12 212 325 541 1,071 1,121 1,291 1,397 1,418 3,509 3,510 3,509 3,509 3,509 3,709 3,822 4,037 4,567 4,617 4,787 4,893 4,914 156 151 151 151 151 151 151 151 151 161 181 181 201 25 25 25 25 25 5,390 5,306 5,273 5,311 5,387 5,557 5,685 5,889 6,639 6,596 6,687 6,773 6,870 International and regional: 79 124 46 97 98 89 207 219 620 411 334 21 121 Latin American regional.................. 75 71 68 52 67 61 61 59 79 77 65 52 48 154 195 114 149 165 150 268 277 699 488 399 74 169 5,544 5,502 5,387 5,460 5,552 5,708 5,953 6,167 7,337 7,084 7,087 6,847 7,039 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 1070 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—July r................. 33,888 32,885 10,748 480 6,698 3,571 5,152 9,247 7,737 1,003 626 207 170 Aug.r................ 35,377 34,572 11,543 453 7,744 3,346 5,295 9,502 8,232 805 461 180 164 Sept.r................ 34,464 33,546 10,551 528 6,672 3,352 5,245 9,572 8,178 918 468 217 233 Oct.r................. 34,647 33,617 10,033 378 6,317 3,338 5,356 10,072 8,155 1,030 547 243 240 Nov.r............... 36,833 35,805 10,999 446 7,121 3,433 5,345 10,724 8,737 1,028 515 283 229 Dec.r................ 38,913 37,703 11,301 381 7,342 3,579 5,637 11,237 9,527 1,210 668 289 253 1975—Jan.'................. 38,977 37,688 10,195 361 6,281 3,553 5,565 11,062 10,866 1,289 719 351 219 Feb.r................. 39,772 38,582 10,275 379 6,376 3,521 5,346 11,127 11,833 1,190 609 336 244 Mar.r............... 42,186 41,023 9,626 310 5,682 3,633 5,415 11,341 14,641 1,162 626 290 246 Apr.r................. 42,806 41,547 10,658 362 6,518 3,778 5,339 11,441 14,109 1,260 764 241 254 May.................. 45,106 44,038 11,862 366 7,648 3,848 5,546 10,951 15,679 1,068 478 301 290 June*................ 45,620 44,395 11,315 454 6,813 4,048 5,345 10,639 17,097 1,224 591 335 299 July*................. 45,513 44,325 11,749 570 6,886 4,293 5,383 10,204 16,989 1,188 508 296 284 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

SEPTEMBER 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1973 1974 1975 Area and country Dec. Oct.r Nov.r Decr Jan.r Feb.' Mar.r Apr.' May June? July* Europe: 11 21 42 21 18 38 22 16 19 17 16 147 301 308 384 401 591 550 674 647 600 620 48 59 45 46 54 53 41 53 49 64 62 108 128 107 122 132 136 137 147 137 133 142 621 485 802 673 892 893 896 859 723 581 666 311 332 438 589 390 435 387 399 389 426 482 35 48 57 64 52 42 46 54 37 37 46 316 340 340 345 351 277 287 334 329 339 363 133 176 183 348 195 210 187 157 221 218 288 72 94 97 119 115 106 104 114 126 98 91 Portugal................................................... 23 35 25 20 16 39 32 26 25 25 27 222 232 206 196 184 166 150 234 251 235 257 153 149 160 180 128 99 72 101 132 115 155 176 277 339 335 252 267 230 227 277 252 254 10 15 14 15 23 17 19 37 30 40 26 1,459 1,852 2,332 2,441 2,700 2,770 2,896 3,174 3,712 3,476 3,448 10 24 28 22 38 18 16 28 39 31 36 Other Western Europe............................. 25 31 38 22 22 27 24 31 25 22 22 U.S.S.R...................................................... 46 27 28 46 44 48 34 51 83 77 80 Other Eastern Europe............................. 44 105 86 131 124 100 110 113 117 118 130 3,970 4,729 5,675 6,117 6,130 6,331 6,239 6,831 7,370 6,905 7,212 1,955 2,556 2,517 2,791 2,904 2,643 2,934 2,911 3,096 2,852 2,666 Latin America: 499 683 708 720 783 808 869 958 1,007 1,071 1,105 883 3,085 2,978 3,398 3,737 4,699 5,926 5,715 6,997 8,647 7,811 900 1,476 1,493 1,415 1,264 1,345 1,266 1,299 1,272 1,184 1,390 Chile.......................................................... 151 256 291 290 303 351 395 433 422 429 472 397 686 675 713 706 679 695 710 702 687 666 12 13 13 14 13 18 13 13 13 13 13 1,373 1,836 1,898 1,972 1,898 2,006 2,116 2,236 2,380 2,537 2,665 274 405 402 503 604 458 546 531 671 527 581 Peru........................................................... 178 433 486 518 504 531 555 606 590 623 626 Uruguay.................................................... 55 46 63 63 75 86 104 116 100 85 90 518 557 643 704 795 747 736 757 745 791 902 Other Latin American republics............. 493 724 810 852 886 902 902 954 960 953 1,043 Netherlands Antilles and Surinam......... 13 61 74 62 45 39 39 36 44 83 62 Other Latin America............................... 154 711 920 1,138 1,438 1,535 1,583 1,722 2,219 1,824 1,664 Total................................................. 5,900 10,972 11,453 12,362 13,051 14,202 15,747 16,085 18,122 19,453 19,089 A^ia: China, People’s Rep. of (China Mainland) 31 7 5 4 18 65 19 11 12 9 13 China, Republic of (Taiwan).................. 140 499 483 500 526 473 500 448 434 479 463 147 214 238 223 203 184 291 210 288 315 201 16 19 16 14 19 22 17 21 17 20 23 Indonesia.................................................. 88 128 140 157 142 159 145 134 119 115 113 Israel.......................................................... 155 209 216 255 271 284 322 299 287 312 362 Japan........................................................ 6,398 11,745 12,441 12,514 11,821 11,246 11,600 11,028 10,603 10,222 10,308 Korea........................................................ 403 760 835 955 1,116 1,286 1,356 1,503 1,415 1,523 1,462 Philippines................................................ 181 347 325 372 302 342 353 398 455 478 480 Thailand.................................................... 273 417 428 458 391 374 406 413 374 441 461 Other......................................................... 392 670 666 771 743 781 846 1,007 965 907 1,068 Total.................................................. 8,224 15,016 15,795 16,222 15,549 15,216 15,855 15,472 14,969 14,821 14,955 Africa: Egypt......................................................... 35 93 91 111 106 114 122 142 138 149 134 Morocco................................................... 5 11 12 18 19 15 19 10 12 10 10 129 282 299 329 364 396 413 458 475 498 489 Zaire.......................................................... 61 107 101 98 31 38 31 37 41 43 34 158 311 291 299 265 291 290 326 351 369 396 Total.................................................. 388 804 795 855 785 853 875 973 1,018 1,068 1,064 Other countries: 243 478 492 466 433 431 436 428 440 428 446 43 91 104 99 125 95 99 107 89 81 80 286 569 597 565 558 526 535 535 528 509 526 20,723 34,646 36,832 38,912 38,976 39,771 42,185 42,805 45,104 45,609 45,512 1 1 1 0 1 1 1 1 2 11 1 20,723 34,647 36,833 38,913 38,977 39,772 42,186 42,806 45,106 45,620 45,513 Note.—Short-term claims are principally the following items payable their own account or for account of their customers in the United States; on demand or with a contractual maturity of not more than 1 year: loans and foreign currency balances held abroad by banks and bankers and made to, and acceptances made for, foreigners; drafts drawn against their customers in the United States. Excludes foreign currencies held foreigners, where collection is being made by banks and bankers for by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 ers 2 1971»-............... 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 19723............... J \5 4 , , 0 9 6 5 3 4 4 4 , , 5 5 3 8 9 8 8 8 3 4 3 4 4 4 3 3 0 0 3 3 , , 2 3 7 1 6 4 4 3 3 7 5 5 4 4 0 0 1 1 4 5 5 0 7 70 0 3 4 4 4 0 0 6 6 2 1 , , 0 9 2 96 0 3 3 5 1 3 9 9 88 1 1 8 5 5 0 1 3 4 1973................. 5,996 5,446 1,160 591 3,694 478 72 148 1,124 490 2,116 251 1,331 536 1974—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.r... 7,259 6,580 1,451 914 4,215 608 71 333 1,725 523 2,495 267 1,399 517 Nov.r... 7,260 6,570 1,383 933 4,253 618 72 339 1,652 506 2,574 260 1,395 534 Dec.r... 7,156 6,482 1,333 931 4,219 609 65 329 1,578 486 2,602 258 1,361 642 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.r... 7,554 6,900 1,399 1,063 4,438 598 55 357 1,769 485 2,695 247 1,409 592 Apr.r... 7,583 6,915 1,239 1,110 4,566 60S 63 375 1,813 490 2,786 242 1,249 630 May.... 7,870 7,194 1,287 1,187 4,720 610 66 402 1,923 476 2,851 254 1,284 679 June*... 7,755 7,118 1,269 1,204 4,645 559 77 389 1,885 446 2,831 264 1,261 678 July*... 8,184 7,320 1,286 1,293 4,742 789 75 428 1,895 456 2,982 270 1,444 710 1 Excludes central banks, which are included with “Official institutions.” reporting coverage. Figures on the first line are comparable in coverage 2 Includes international and regional organizations. with those shown for the preceding date; figures on the second line are 3 Data on the 2 lines shown for this date differ because of changes in comparable with those shown for the following date. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG TERM SECURITIES, BY TYPE (In millions of dollars) Marketable U.S. Treas. bonds and notes1 U.S. corporate Foreign bonds Foreign stocks securities2 Net purchases or sales Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases or Total and sales sales sales regional Total Official Other 197 2 3,316 57 3,258 3,281 -23 19,083 15,015 4,068 1,901 2,932 -1,031 2,532 2,123 409 197 3 305 -165 470 465 6 18,574 13,810 4,764 1,474 2,467 -993 1,729 1,554 176 1974r................... -472 101 -573 -642 69 16,183 14,677 1,506 1,045 3,284 -2,240 1,903 1,719 183 1975—Jan.-JulyP 1,331 19 1,312 1,101 211 12,136 9,109 3,028 1,312 4,063 -2,751 961 1,044 -82 1974—July r........ 23 9 14 14 1,091 1,103 -12 94 251 -158 128 116 12 Aug.r....... -42 41 -84 -73 -11 1,487 1,167 320 59 214 -155 146 117 29 Sept.r___ -115 -81 -33 -60 27 1,478 1,188 291 72 152 -80 146 100 47 Oct.r____ 73 35 38 38 1,624 1,511 113 86 362 -276 91 152 -62 Nov.r , 91 16 76 25 50 1,414 1,518 -104 92 170 -78 124 102 22 Dec.r___ 156 -15 171 153 17 1,101 1,246 -145 101 524 -423 117 87 30 1975—Jan. r 245 118 127 118 9 1,229 900 330 131 1,207 -1,076 147 156 -9 Feb.r........ 214 9 205 102 102 1,661 1,403 258 118 554 -436 134 173 -39 Mar.r___ 1,171 421 749 724 25 1,755 1,155 600 197 647 -450 148 159 -11 Apr.r....... -254 -210 -43 -62 20 1,640 1,397 243 167 341 -174 155 141 14 May......... 3 -89 92 123 -31 1,845 1,679 166 172 345 -173 145 157 -12 June*....... -240 -326 86 56 31 1,754 1,332 422 215 855 -640 129 143 -15 July*........ 192 95 96 41 56 2,251 1,243 1,008 314 115 199 104 115 -10 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur­ Net pur­ Ger­ Nether­ Switzer­ United Other Total Latin Period chases Sales chases or France many lands land King­ Europe Europe Canada America Asia Other1 sales (—) dom 1972..................... 14,361 12,173 2,188 372 -51 297 642 561 137 1,958 -78 -32 256 83 1973..................... 12,767 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.-July* 9,097 6,654 2,443 133 111 214 550 400 52 1,461 119 21 834 4 1974—July 521 510 11 13 5 39 -9 -64 3 -13 10 -2 13 2 Aug r......... 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 Nov r........ 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 36 -7 152 21 8 96 -19 July*........ 1,669 1,080 589 55 31 80 139 74 16 396 20 13 155 5 1 Includes international and regional organizations. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 2 1,881 336 77 74 1215 367 315 1,303 82 22 323 2 * 148 197 3 1,948 201 -33 -19 307 275 473 1,204 49 44 588 * 10 52 1974 '................... 952 96 27 183 96 329 -59 672 50 43 632 8 10 -455 1975—Jan.-July* 586 39 24 -12 101 -76 32 108 8 2 909 * * -518 1974—Jul y -22 -1 2 72 2 46 -11 110 1 5 7 * 10 -155 Aug.r....... 232 1 -1 1 -1 29 -9 20 2 4 199 * * 7 Sept.r....... 276 1 1 -1 2 64 -3 65 4 2 60 * 145 Oct.r........ 135 10 * -1 13 6 -5 24 18 5 100 * * -11 Nov.r... . -92 4 -2 2 -1 -9 -6 -13 6 1 399 * * -483 Dec.r........ -166 1 * -4 1 64 5 66 -4 17 93 * * -337 1975—Jan. ' 140 2 3 * 6 59 25 94 14 -1 152 * * -120 Feb.’’........ -275 -4 3 * 3 -91 1 -87 16 * 37 * 1 -241 Mar.r....... 365 1 -1 -1 10 23 1 32 4 -4 322 * * 10 Apr.r........ -16 1 2 -26 35 -99 -13 -100 5 3 81 * * -6 May......... -212 3 1 -1 7 -81 -3 -72 7 1 69 * * -218 June*........ 164 9 * 8 5 32 3 58 4 * 64 * * 40 July*........ 419 27 16 6 35 80 19 183 33 1 183 * * 19 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 SAI-ES 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 22 372 405 1975— 1973—Mar............................ 310 364 Jan.—July* -3,728 -1,326 -2,403 -149 -1,507 -135 -517 21 -117 June........................... 316 243 Sept............................ 290 255 1974—July.... -145 1 -147 -63 -108 -1 24 -1 3 333 231 Aug---- -125 2 -127' -35 -126 -9 42 -1 1 Sept___ -34 12 -46 -41 -37 5 23 1 3 1974—Mar............................ 383 225 Oct....... -338 2 -340 -81 -244 * -16 -1 2 June........................... 354 241 Nov.... -56 3 -59 -21 -8 -14 -21 2 3 Sept............................ 298 178 Dec.. .. -393 -95 -298 -27 -190 -25 -67 12 * Dec.*......................... 293 193 1975—Jan -1,085 -572 -514 -41 -405 -28 -60 20 * 1975—Mar.*......................... 349 209 Feb.. .. -475 -147 -328 19 -159 -97 -94 2 * Mar.r.. -462 -106 -356 -66 -175 -3 -112 -2 1 Apr.. .. -160 -57 -103 -57 -6 17 -59 * 2 Note.—Data represent the money credit balances and May. .. -185 31 -216 39 -168 « -88 -2 2 money debit balances appearing on the books of reporting June*.. -655 * -655 -22 -478 * -30 2 -127 brokers and dealers in the United States, in accounts of July*... -706 -475 -232 -22 -166 -25 -73 • 4 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. □ SEPTEMBER 1975 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 1972—Dec........... 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 2,220 1973—Dec........... 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—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 2,669 138,143 27,894 58,863 4,152 47,234 5,968 Feb........... 151,662 5,486 2,882 2,604 140,345 28,969 58,794 4,246 48,335 5,832 Mar........... 155,204 5,326 2,638 2,688 143,750 28,330 61,611 4,407 49,402 6,127 Apr........... 155,616 5,831 3,052 2,779 143,949 29,195 60,292 4,353 50,109 5,836 May r........ 156,909 7,725 4,889 2,837 143,101 27,581 60,330 4,494 50,697 6,083 June*........ 162,207 5,538 2,341 3,196 150,385 30,830 63,709 4,824 51,021 6,284 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—June.......... 101 ,704 6,518 4,107 2,410 92,568 17,478 47,819 2,803 24,467 2,619 July........... 101,534 6,110 3,738 2,373 92,733 18,480 46,422 2,889 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 r........ 111,637 7,316 4,824 2,491 101,384 21,281 45,403 3,685 31,016 2,938 June*........ 117,295 5,111 2,280 2,832 109,181 24,529 49,132 3,949 31,571 3,003 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 ........... 61,732 11,977839—Dec738 1,051 57,761 8,773 34,442 735 13,811 2,183 1974—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 2,087 774 65,596 12,436 34,959 829 17,372 2,509 Oct............ 68,123 1,325 502 823 64,462 12,386 33,608 887 17,581 2,336 Nov........... 69,137 3,387 2,568 818 63,571 13,122 32,128 753 17,567 2,179 Dec........... 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 2,445 1975—Jan............ 68,451 2,633 1,902 731 63,527 12,873 32,057 854 17,743 2,291 Feb........... 67,038 1,818 1,023 796 63,250 13,246 31,641 848 17,515 1,970 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 1,689 845 64,269 12,491 32,443 920 18,415 1,904 June*........ 70,751 1,834 641 1,192 66,868 13,765 34,634 948 17,522 2,049 Payable in U.S. dollars........................... 1972—Dec........... 30,257 2,146 1,131 1,015 27,664 4,326 17,331 543 5,464 446 1973—Dec........... 40,323 1,642 730 912 37,816 6,509 23,389 510 7,409 865 1974—June.......... 49,363 3,462 2,597 865 44,774 9,425 25,534 613 9,203 1,126 July.......... 48,158 2,958 2,194 765 44,061 9,932 24,132 566 9,432 1,138 Aug........... 49,406 3,507 2,847 660 44,677 10,529 23,948 563 9,637 1,222 Sept........... 50,075 2,774 2,067 708 45,960 10,305 25,044 676 9,937 1,339 Oct............ 47,968 1,235 479 756 45,421 10,234 24,499 734 9,954 1,312 Nov........... 48,710 3,277 2,546 730 44,198 10,796 22,936 615 9,852 1,235 Dec........... 49,211 3,146 2,468 678 44,693 10,265 23,716 610 10,102 1,372 1975—Jan............ 47,769 2,542 1,892 650 43,959 10,421 22,610 661 10,268 1,267 Feb........... 46,019 1,697 1,017 680 43,244 10,615 21,918 657 10,055 1,077 Mar........... 48,939 1,687 974 713 46,039 10,373 24,874 736 10,057 1,212 Apr........... 48,797 1,885 1,109 776 45,923 10,995 23,990 721 10,217 989 May.......... 48,506 2,404 1,671 733 45,180 10,656 23,320 698 10,506 922 June*........ 51,365 1,669 623 1,045 48,713 12,054 25,761 721 10,178 983 IN BAHAMAS AND CAYMANS1 Total, all currencies............................. 1972—Dec........... 12,642 1,486 214 1,272 10,986 725 5,507 431 4,322 170 1973—Dec........... 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 520 1974—June......... 31,219 2,427 981 1,446 28,005 3,274 12,702 1,668 10,361 787 July.......... 30,403 2,380 870 1,510 27,208 3,044 12,059 1,719 10,386 815 Aug........... 32,317 4,624 3,153 1,471 26,914 3,056 11,488 1,612 10,757 779 Sept........... 30,080 2,315 750 1,564 26,910 2,770 11,515 1,728 10,896 856 Oct............ 30,071 2,206 711 1,495 27,075 3,178 11,347 1,756 10,795 790 Nov........... 32,313 3,299 1,816 1,484 28,130 3,829 11,371 1,993 10,937 883 Dec........... 31,733 2,463 1,081 1,382 28,455 3,478 11,354 2,022 11,601 815 1975—Jan............ 33,131 3,223 1,594 1,629 29,070 3,644 11,194 2,027 12,206 838 Feb........... 33,534 2,563 1,072 1,491 30,137 3,855 11,474 2,060 12,748 834 Mar........... 33,793 2,405 839 1,567 30,671 3,568 11,634 2,393 13,077 716 Apr........... 35,666 2,587 1,006 1,581 32,359 4,320 12,229 2,419 13,392 720 May.......... 38,198 4,125 2,468 1,657 33,215 4,270 13,181 2,531 13,233 858 June*........ 39,645 2,632 987 1,645 36,182 5,831 13,747 2,772 13,832 831 Digitized for FRASER For notes see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 78,203 3,501 997 2,504 72,121 11,121 41,218 8,351 11,432 2,580 .1972- -Dec. .. .Total, all currencies 121,866 5,610 1,642 3,968 111.615 18.213 65,389 10,330 17,683 4,641 .1973--Dec. 147,467 9,028 3,488 5,540 132,328 24,234 71,692 14,388 22,015 6,110 . 1974—June 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 ............Sept. 145,906 10,449 5,853 4,596 128,910 26,619 62,606 18,171 21,514 6,548 ............Oct. 150,275 11,901 6,249 5,652 131,619 27,717 63,596 19,979 20,327 6,755 ............Nov. 151,905 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20,189 6,933 ...........Dec. 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 ............Mar. 155,617 14,936 8,703 6,233 134.594 29,192 62,287 23,236 19,879 6,088 ..........Apr.r 156,910 16,860 10,366 6,494 133,806 26,725 64.700 22,223 20,158 6,243 ..........May r 162,207 18,611 12,197 6,414 137,097 30,347 65,033 21,004 20,713 6,499 ..........June** 54,878 3,050 847 2,202 50,406 7,955 29,229 6,781 6,441 1,422 . 1972—Dec. . Payable in U.S. dollars 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 . 1973—Dec. 102,302 8,414 3,279 5.135 90,359 17,070 48,909 11,630 12,750 3,529 . 1974—June 102,432 9,494 4,160 5,334 89,264 18,438 45,768 12,337 12,721 3,675 ............July 106,909 8,786 3,932 4,853 94,178 19,456 48,394 13,508 12,821 3,945 ............Aug. 106,004 9,294 4,833 4,461 92,630 19,599 46,020 14,533 12,478 4,080 ............Sept. 103,934 9,905 5,650 4,255 90,136 19,481 42,690 15,076 12,889 3,893 ............Oct. 107,427 11,215 6,023 5,192 92,233 20,242 43.147 16,789 12,054 3,979 ............Nov. 107,890 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12,072 3,951 ............Dec. 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 10,907 3,636 ............Feb. 109,501 14,795 8,660 6.135 91,338 19,880 41,216 19,303 10,939 3,368 ............Mar. 110,405 14,280 8,520 5,760 92,712 20,683 40,996 19,909 11,123 3,414 ..........Apr.r 114,105 16,259 10,192 6,067 94,449 20,521 43,860 18,928 11,139 3,397 ..........May r 119,385 18,000 12,011 5,990 97,825 23.969 44,299 17,868 11, 3,560 ..........June** 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. 71,305 3.744 606 3,138 65,429 4,913 36,711 11,289 12,516 2,132 .1974—June 69,197 3,439 611 2,828 63,557 5,099 34,393 11.543 12.521 2,201 ............July 70,382 3,701 713 2,988 64,309 4,794 33,920 12,737 12,858 2,373 ............Aug. 70,965 3,503 635 2,867 64,919 5,428 33,766 13.544 12,181 2,543 ............Sept. 68,123 3,227 683 2,544 62,621 5,237 30,621 14,051 12,712 2,275 ............Oct. 69,137 4.376 889 3,487 62,397 5.071 30,352 15,454 11.521 2,363 ............Nov. 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 ............Dec. 68,451 3.804 873 2,931 62,360 4,567 30,266 16,419 11,108 2,287 .1975—Jan. 67,038 4.376 913 3,462 60.546 4,693 29,207 16,517 10,127 2,117 ............Feb. 69,654 5,095 1,224 3,871 62,363 4,630 29,990 17,305 10,438 2,196 ............Mar. 69,248 4,596 1,342 3,254 62,625 5,394 28,666 17,812 10,753 2,026 ............Apr. 68,708 4,772 1,337 3,435 61,772 5,325 28,957 16,726 10,764 2,164 ............May 70,751 4,668 1,451 3,217 63,857 7,030 30,030 15,524 11,274 2,226 ..........June** 30,810 1,272 72 1,200 29,002 2,008 17,379 5,329 4,287 535 .1972—Dec. .Payable in U.S. dollars 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 .1973—Dec. 48,970 3,516 579 2,937 44,214 3.255 23,669 9,137 8,155 1,239 .1974—June 48,018 3.176 568 2,608 43,528 3,364 22,388 9,450 8,326 1,314 ............July 49,481 3,448 692 2,756 44,654 3,278 22,558 10,437 8,382 1,380 ............Aug. 50,212 3.177 605 2,572 45,550 3,667 22,818 11,035 8.030 1,486 ............Sept. 48,314 2,988 651 2,337 44,033 3,690 20,203 11,444 8,696 1,294 ............Oct. 49,668 4,037 865 3.172 44,256 3,557 20,200 12,808 7,691 1,375 ............Nov. 49,666 3.744 484 3,261 44,594 3.256 20,526 13,225 7,587 1,328 ............Dec. 48,490 3,599 854 2,744 43,578 3,172 19,061 13,736 7,609 1,313 .1975—Jan. 46,698 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 ............Mar. 49,177 4,297 1.313 2,984 43,758 3,886 17,997 15,158 6,717 1,122 ............Apr. 49,479 4,487 1.314 3.173 43,784 4,220 18,640 14,135 6,789 1,208 ............May 51,848 4,369 1,412 2,957 46.312 5,962 20,039 13,083 7,228 1,167 ..........June** IN BAHAMAS AND CAYMANS 1 12,643 1,220 312 908 11,260 1,818 7,875 230 1,338 163 . 1972—Dec. .. .Total, all currencies 23,771 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 . 1973—Dec. 31,219 2,855 911 1,944 27,725 7,642 16,496 1,096 2,490 639 . 1974—June 30,403 3,684 1,238 2,446 26,039 7,663 14,595 1,627 2,153 681 ............July 32,317 2,909 1,123 1,786 28,670 8,079 16,688 1,715 2,188 738 ............Aug. 30,080 3,721 2,151 1,571 25,626 7,072 14,419 1,840 2,295 733 ............Sept. 30,071 4,311 2,706 1,605 24,995 7,211 13,669 1,980 2,135 765 ............Oct. 32,313 4,426 2,699 1,727 27,107 8,538 14,132 2,296 2,141 779 ............Nov. 31,733 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 ............Dec. 33,131 5,036 2,926 2,111 27,343 8,269 14,259 2,595 2,220 752 . 1975—Jan. 33,534 5,243 3,281 1,962 27,498 8,975 13,550 2,711 2,262 793 ............Feb. 33,793 7,228 5,081 2,147 25,875 8,498 12,614 2,520 2,243 690 ............Mar. 35,667 7,420 5,083 2,337 27,536 8,756 13,694 2,769 2,318 711 ............Apr.r 38,198 9,090 6,766 2,324 28,309 6,872 16,018 2,977 2,441 799 ............May r 39,645 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 ............June? Digitized foFr oFrR nAotSesE sRee p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 i . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 1972.............. 325 50,934 215,530 1973.............. 251 52,070 217,068 1,491 1,062 161 183 86 663 534 1974.............. 418 55,600 16,838 1,141 697 150 173 121 372 443 1974—Aug... 372 53,681 16,917 19712.................. / \ 1 1 , , 6 5 4 0 8 7 1 1 , , 0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 34 4 1 6 2 8 0 5 5 7 8 7 0 4 5 4 8 3 7 Sept... 411 53,849 16,892 O N c o t v .. . . . . . 6 37 2 6 6 5 5 4 5 , , 6 9 9 0 1 8 1 1 6 6 , , 8 8 6 7 5 5 19722 1 f 2 l , , 3 9 7 6 4 5 1 1 , , 4 91 46 0 16 5 9 5 3 30 4 7 0 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 Dec.. . 418 55,600 16,838 1973................... 3,162 2,588 37 427 109 1,118 770 1975—Jan.... 391 58,001 16,837 1974—June........ 3,661 3,049 62 369 181 1,418 927 Feb... 409 60,864 16,818 July........ 3,771 3,223 74 341 133 1,441 828 Mar... 402 60,729 16,818 Aug......... 3,504 2,941 51 369 144 1,436 872 Apr.... 270 60,618 16,818 Sept......... 3,073 2,491 30 362 189 1,194 864 May. . 310 61,539 16,818 Oct.......... 2,698 2,132 25 325 216 1,122 835 June... 373 61,406 16,803 Nov......... 2,998 2,380 15 326 277 1,285 941 July... 369 60,999 16,803 Dec......... 3,303 2,582 56 403 261 1,342 951 ,Aug... 342 60,120 16,803 1975—Jan......... 3,215 2,511 45 314 345 1,136 1,112 Feb........ 3,326 2,512 46 356 412 1,079 1,136 1 Marketable U.S. Treasury bills, certificates of in­ Mar........ 3,234 2,434 66 347 387 1,055 1,132 debtedness, notes, and bonds and nonmarketable U.S. Apr......... 3,359 2,449 39 313 559 1,065 1,277 Treasury securities payable in dollars and in foreign MayP___ 3,182 2,216 47 391 527 905 1,238 currencies. June?.. . . 3,112 2,232 95 351 433 970 1,107 2 The value of earmarked gold increased because of the changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the Note.—Excludes deposits and U.S. Treasury securities obligation was incurred by the foreigner. held for international and regional organizations. Ear­ 2 Data on the 2 lines for this date differ because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 22. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter’s name 1971—Sept...................... 2,564 2,109 454 4,894 4,186 383 326 r\a« i J 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,000 4,467 289 244 1972—Mar...................... 2,844 2,407 437 5,173 4,557 317 300 June..................... 2,925 2,452 472 5,326 4,685 374 268 Sept...................... 2,933 2,435 498 5,487 4,833 426 228 Dec.11................... J 1 3 3 , , 3 1 9 1 9 9 2 2, , 9 6 2 3 1 5 4 4 7 8 8 4 6 5, , 7 3 2 1 1 2 5 5 , , 0 6 7 4 4 5 4 3 1 93 0 2 2 3 7 7 4 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

SEPTEMBER 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 23. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 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 59 121 131 137 128 113 322 395 415 397 315 Netherlands............................................ 114 104 120 117 121 103 126 144 148 157 9 8 10 9 9 22 35 32 36 34 24 17 20 19 13 112 101 69 81 42 Spain...................................................... 60 45 48 56 54 406 409 414 369 359 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 1,118 1,244 1,415 1,216 1,101 1,839 1,871 1,768 1,853 1,635 16 18 17 40 52 15 23 23 22 33 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 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: Egypt...................................................... 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. □ SEPTEMBER 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1971—Mar.. 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June. 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept.. 2,939 3,019 135 672 765 178 60 597 133 319 85 75 Dec.1 3 3 , , 1 1 3 5 8 9 3 3 , , 1 06 18 8 1 1 2 28 8 7 7 0 0 5 4 7 7 6 1 1 7 1 1 7 74 4 6 6 0 0 6 65 5 3 2 1 1 4 3 1 6 3 3 2 2 7 5 8 8 6 6 8 8 4 5 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.1. 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 6 4 0 7 6 0 5 3 8 1 1 3 5 3 6 4 3 0 7 6 8 8 8 7 6 1 3 0 8 9 1973—Mar.. 3.770 3,421 156 802 775 165 63 796 123 393 105 45 June.. 3.771 3,472 180 805 782 146 65 825 124 390 108 48 Sept.. 3,979 3,632 216 822 800 147 73 832 134 449 108 51 Dec.. , 3,867 3,695 290 763 854 145 79 824 122 450 115 53 1974—Mar.. 3,816 3,813 368 737 194 81 800 118 448 119 61 June.. 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 ,019 182 966 102 528 130 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 money2 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—Aug............. 8.76 8.83 12.80 11.24 11.11 9.50 13.68 5.63 9.05 7.50 7.09 7.00 Sept............. 8.70 8.84 12.11 10.91 10.69 9.50 13.41 5.63 9.00 7.42 5.08 7.00 Oct.............. 8.67 8.56 11.95 10.93 10.81 9.50 13.06 5.63 8.88 7.38 7.81 7.00 Nov............. 7.84 7.86 12.07 10.98 7.70 9.50 12.40 5.63 7.20 6.72 7.00 7.00 Dec............. 7.29 7.44 12.91 10.99 7.23 9.50 11.88 5.13 8.25 6.69 6.96 7.00 1975—Jan.............. 6.65 6.82 11.93 10.59 8.40 9.30 11.20 5.13 7.54 6.60 6.18 7.00 Feb.............. 6.34 6.88 11.34 9.88 7.72 9.50 9.91 3.88 4.04 6.56 7.33 7.00 Mar............. 6.29 6.73 10.11 9.49 7.53 8.22 9.06 3.38 4.87 5.94 5.87 7.00 Apr............. 6.59 6.68 9.41 9.26 7.50 7.09 8.34 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 3.38 3.98 2.98 1.99 6.50 Aug............. 7.72 7.42 10.59 10.43 8.59 6.43 7.16 1.93 2.90 1.51 6.00 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $36,292 million and $36,572 million, respectively, on June 30, 1975. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1975 d 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 August 31, 1975 Rate as of August 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................. 7.5 Aug. 1975 Belgium......................... 6.0 Aug. 1975 Mexico............... 4.5 June 1942 Brazil............................. 18.0 Feb. 1972 Netherlands.... 5.5 Aug. 1975 Canada.......................... 8.25 Jan. 1975 Norway............. 5.5 Mar. 1974 Denmark....................... 7.5 Aug. 1975 Sweden.............. 6.0 Aug. 1975 France........................... 9.5 June 1975 Switzerland........ 4.0 Aug. 1975 Germany, Fed. Rep. of. 4.5 Aug. 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, 4% Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5% 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—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 Aug.......... 128.15 5.4991 2.6129 96.581 16.783 22.848 38.857 11.379 211.43 .14963 .33560 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—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 Aug.......... 39.779 8.0000 37.887 111.79 18.304 3.7700 139.72 1.7140 23.174 37.332 211.43 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

OPERATING RATIOS BY SIZE OF BANK AND BY RATIO OF TIME TO TOTAL DEPOSITS (Averages of individual ratios expressed as percentages) Size group—Total deposits Ratio of time deposits to (in thousands of dollars) total deposits (per cent) All Item groups 5,000 5,000- 10,000- 25,000- 50,000- 100,000- Over Under 60 and and 10,000 25,000 50,000 100,000 500,000 500,000 40 40-49 50-59 over under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses) 1............................. 11.56 10.26 11.87 12.38 11.43 10.90 10.38 10.15 13.03 11.46 11 .70 11.33 Net income..................................................................................................... 11.50 10.17 11 .82 12.31 11.38 10.92 10.33 9.99 13.00 11.38 11.64 11.27 Percentage of net income: Cash dividends paid...................................................................................... 26.43 18.56 20.84 23.77 28.81 32.47 39.58 46.29 28.02 26.09 26.44 26.31 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................................... 6.06 6.16 5.82 5.88 6.10 6.28 6.57 7.05 5.17 6.01 6.13 6.15 Salaries, wages, and fringe benefits.......................................................... 1 .42 1.87 1.48 1.34 1.34 1.35 1.38 1.33 1 .88 1.63 1 .48 1.27 Interest on time and savings deposits...................................................... 3.03 2.44 2.85 3.08 3.20 3.26 3.15 2.98 1.39 2.39 2.88 3.48 Occupancy expense of bank premises, net.............................................. .21 .26 .19 .19 .21 .23 .24 .23 .26 .26 .22 .19 All other operating expenses.................................................................... 1.40 1.59 1.30 1 .27 1.35 1.44 1 .80 2.51 1.64 1 .73 1.55 1 .21 Total operating income................................................................................. 7.31 7.57 7.26 7.20 7.25 7.30 7.54 7.98 7.09 7.37 7.39 7.28 Income after taxes and before securities gains (losses)1............................ .95 .98 1.03 1.00 .91 .83 .79 .72 1 .30 .98 .96 .88 Net income..................................................................................................... .94 .97 1.03 .99 .90 .83 .79 .71 1.30 .97 .96 .88 Percentage of total operating income: Interest, fees, and other loan income2......................................................... 69.19 67.35 67.15 68.20 70.23 71.10 72.76 76.72 66.86 68.92 69.24 69.52 Securities—Interest and dividends:3 U.S. Treasury securities............................................................................ 9.58 14.45 12.41 10.03 7.83 6.61 5.62 3.84 12.12 9.33 9.09 9.60 Other U.S. Govt, securities (agencies and corporations)....................... 5.56 7.29 7.12 5.88 4.75 4.45 3.31 1.67 4.76 4.88 5.18 6.04 Obligations of States and political subdivisions..................................... 8.30 3.82 7.10 9.08 9.71 9.45 8.49 6.43 7.22 7.94 8.43 8.46 All other securities.................................................................................... .74 .84 .58 .72 .77 .90 .89 .53 .67 .54 .52 .93 (Service charges on deposit accounts*)...................................................... (3.10) (3.48) (3.19) (3.27) (3.13) (2.91) (2.41) (1.87) (4.20) (4.00) (3.58) (2.47) (Trust department income4)........................................................................ (1.73) (2.17) (1.27) (.90) (1.35) (2.01) (2.43) (3.05) (3.97) (2.34) (1.77) (1.30) All other operating income........................................................................... 6.63 6.25 5.64 6.09 6.71 1A9 8.93 10.81 8.37 8.39 7.54 5.45 Total operating income..................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages......................................................................................... 16.72 22.08 17.92 16.01 15.64 15.85 15.56 14.13 23.02 19.11 17.42 14.92 Officer and employee benefits....................................................................... 2.59 2.65 2.47 2.52 2.61 2.71 2.79 2.66 3.33 2.90 2.64 2.38 Interest on: Time and savings deposits........................................................................ 41.71 32.35 39.52 43.10 44.39 44.87 42.09 37.56 19.80 32.84 39.38 48.04 Borrowed money........................................................................................ 1 .79 .31 .38 .65 1 .48 2.65 6.78, 14.96 2.36 3.09 2.29 1.10 (Capital notes and debentures4).............................................................. (7.75) (1.23) (1.25) (1.30) (1.17) (1.12) (1.03) (.93) (1.05) (1.06) (1.18) (1.16) Occupancy expense of bank premises, net.................................................. 2.94 3.42 2.64 2.75 3.01 3.26 3.32 3.04 3.63 3.53 3.07 2.64 Provision for loan losses............................................................................... 2.56 2.66 2.49 2.46 2.58 2.58 2.59 3.64 2.54 3.37 2.94 2.14 All other operating expenses........................................................................ 14.25 17.23 14.22 13.89 14.19 14.04 13.81 12.20 17.47 16.02 14.99 12.99 Total operating expenses1................................................................. 82.56 80.70 79.64 81.38 83.90 85.96 86.94 88.19 72.15 80.86 82.73 84.21 Income before taxes and securities gains (losses)....................................... 17.44 19.30 20.36 18.62 16.10 14.04 13.06 11.81 27.85 19.14 17.27 15.79 Income after taxes and before securities gains (losses)............................... 13.31 13.51 14.71 14.18 12.81 11 .65 10.81 9.32 18.96 13.85 13.35 12.45 Net securities gains or losses ( —), after taxes............................................ -.11 -.15 -.14 -.10 -.08 -.07 -.10 -.12 -.16 -.13 -.10 -.10 All other income (net)................................................................................... .06 .06 .11 .05 .02 .08 .06 .01 .10 .05 .03 .07 Net income1.................................................................................................. 13.26 13.42 14.68 14.13 12.75 11.66 10.77 9.19 18.90 13.77 13.28 12.42 A 76 MEMBER BANKS, 1974 o SEPTEMBER 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends:3 U.S. Treasury securities................................................................ 6.72 6.91 6.93 6.77 6.58 6.62 6.38 6.29 6.88 7.02 6.68 6.64 Other U.S. Govt, securities (agencies and corporations)............ 5.85 5.04 5.38 5.93 6.02 6.26 6.29 6.60 5.05 5.66 5.97 5.94 Obligations of States and political subdivisions.......................... 4.48 3.66 4.32 4.55 4.72 4.65 4.61 4.76 4.16 4.34 4.48 4.56 All other securities........................................................................ 6.31 4.21 6.34 6.60 6.52 6.59 6.48 6.51 5.52 5.97 6.20 6.57 On loans:2 Interest, fees, and other loan income........................................... 10.15 11.62 10.46 9.90 9.71 9.72 10.20 10.87 11.69 11.02 10.26 9.67 Net loan losses (—) or recoveries5............................................... -.28 -.09 -.23 -.30 -.31 -.34 -.34 -.44 -.19 -.34 -.34 -.25 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities............................................................. 10.05 14.67 12.63 10.43 8.42 7.31 6.52 4.73 11.71 9.59 9.61 10.21 Other U.S. Govt, securities (agencies and corporations)........ 5.75 7.92 7.36 6.01 4.88 4.53 3.53 1.84 4.68 5.07 5.41 6.26 Obligations of States and political subdivisions...................... 12.79 6.10 10.98 13.89 14.72 14.51 13.60 10.62 10.90 12.30 13.14 12.96 All other securities.................................................................... .72 .70 .56 .72 .76 .89 .86 .54 .50 .54 .53 .91 Gross loans2.................................................................................. 56.19 54.99 54.89 55.59 56.85 57.43 58.33 61.12 51.45 54.45 55.72 57.50 Cash assets..................................................................................... 11.73 13.04 11.46 10.98 11 .27 12.13 13.55 15.16 18.27 14.90 12.64 9.58 Real estate assets........................................................................... 1.73 1.89 1 .57 1 .65 1.83 1 .93 1.84 1.75 1.65 1.96 1.83 1.63 Percentage of gross loans:2 Commercial and industrial loans................................................. 19.16 12.31 14.08 17.06 21 .65 25.13 28.49 35.61 20.82 22.94 21.65 16.58 Loans to farmers........................................................................... 12.14 21 .65 21.24 13.76 6.85 2.94 2.03 1.14 16.36 13.57 12.83 10.85 Real estate loans............................................................................ 28.32 18.94 24.44 29.60 31 .33 33.62 29.99 22.28 12.92 18.49 23.75 35.34 Loans to individuals for personal expenditures.......................... 26.78 24.69 24.11 27.37 29.95 28.51 25.54 18.67 27.13 26.92 27.84 26.10 All other loans2............................................................................. 13.60 22.41 16.13 12.21 10.22 9.80 13.95 22.30 22.77 18.08 13.93 11.13 Other ratios (per cent): Interest and fees on loans to loans.................................................. 8.78 8.80 8.55 8.61 8.81 8.88 9.34 10.12 8.86 9.12 8.97 8.57 Interest on time and savings deposits to time and savings deposits 5.87 5.51 5.60 5.72 5.99 6.15 6.48 7.25 5.74 6.02 5.98 5.79 Income taxes to net income plus income taxes............................... 17.24 24.08 21 .64 19.16 13.97 11 .09 7.30 14.88 26.54 21 .36 16.89 15.21 Time and savings deposits to total deposits.................................... 58.95 51 .12 57.53 60.67 61 .06 60.93 57.92 53.18 28.23 46.18 55.51 68.02 Total capital accounts and reserves to total assets7...................... 8.75 11 .93 9.26 8.38 8.28 8.03 8.03 7.68 10.83 9.16 8.73 8.40 Number of banks 8.................................................................................. 5,630 509 959 1,977 1,026 575 430 154 363 740 1,635 2,892 For notes see p. A-81. SEPTEMBER 1975 □ MEMBER BANKS, 1974 A 77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY RATIO OF TIME TO TOTAL DEPOSITS, BY SIZE OF BANK (Averages of individual ratios expressed as percentages) Banks with ratios of time Banks with ratios of time Banks with ratios of time Banks with ratios of time to total deposits of to total deposits of to total deposits of to total deposits of under 40 per cent 40-49 per cent 50-59 per cent 60 per cent and over Item All groups Size group—Total deposits (in thousands of dollars) 5,000 5,000- Over 5,000 5,000- Over 5,000 5,000- Over 5,000 5,000- Over and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 under under under under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............. 11.56 12.59 13.83 11.67 10.28 12.39 10.60 10.24 12.48 11.02 9.02 11.84 11.04 Net income..................................................................................... 11.50 12.55 13.84 11.60 10.09 12.28 10.59 10.13 12.39 11 .01 8.96 11.79 10.96 Percentage of net income: Cash dividends paid....................................................................... 26.43 26.69 23.80 40.33 18.86 22.22 32.95 16.49 21.92 33.60 15.34 23.31 32.41 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................... 6.06 5.13 4.91 5.86 6.18 5.73 6.30 6.32 5.89 6.38 6.60 5.99 6.30 Salaries, wages, and fringe benefits.......................................... 1 .42 2.31 1 .73 1.61 1 .92 1.66 1.51 1.84 1 .48 1.43 1.63 1.23 1 .24 Interest on time and savings deposits...................................... 3.03 .91 1.48 1.87 2.22 2.31 2.53 2.61 2.82 3.00 3.24 3.45 3.56 Occupancy expense of bank premises, net............................... .21 .27 .24 .28 .30 .24 .27 .24 .20 .24 .25 .17 .20 All other operating expenses..................................................... 1.40 1 .64 1 .46 2.10 1.74 1.52 1 .99 1.63 1.39 1.71 1 .48 1.14 1.30 Total operating income................................................................. 7.31 7.27 6.88 7.36 7.56 7.26 7.44 7.62 7.29 7.47 7.70 7.22 7.30 Income after taxes and before securities gains (losses)1............. .95 1.43 1.34 1.03 .94 1.08 .85 .94 1.04 .87 .78 .94 .83 Net income..................................................................................... .94 1.43 1.33 1.02 .93 1.08 .85 .93 1.03 .87 .78 .94 .82 Percentage of total operating income: Interest, fees, and other loan income2......................................... 69.19 64.56 65.49 73.55 66.20 67.24 71 .79 66.61 67.48 71.81 69.79 68.47 70.93 Securities—Interest and dividends:3 U.S. Treasury securities............................................................. 9.58 16.85 12.17 5.14 14.63 10.68 6.17 14.75 10.43 6.49 12.91 10.88 7.24 Other U.S. Govt, securities (agencies and corporations)........ 5.56 6.14 5.16 1.76 7.74 5.67 3.11 7.11 6.40 3.39 7.85 6.51 5.08 Obligations of States and political subdivisions...................... 8.30 4.25 8.79 7.63 3.65 8.31 8.64 3.98 8.51 9.14 3.56 8.38 9.43 All other securities..................................................................... .74 .94 .59 .48 .93 .43 .58 .82 .46 .54 .76 .85 1.06 (Service charges on deposit accounts4)....................................... (3.10) (4.41) (4.58) (3.05) (4.10) (4.57) (3.26) (3.52) (3.90) (3.21) (2.72) (2.42) (2.49) (Trust department income4)........................................................ (1.73) (1.03) (2.80) (4.84) (1.31) (2.66) (4.00) (.65) (2.08) (1.96) (.77) (1.49) All other operating income........................................................... 6.63 7.26 7.80 11.44 6.85 7.67 9.71 6.73 6.72 8.63 5.13 4.91 6.26 Total operating income..................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages......................................................................... 16.72 28.26 21.86 18.28 22.36 19.78 17.38 21.90 17.59 16.42 18.76 14.79 14.41 Officer and employee benefits....................................................... 2.59 3.60 3.18 3.30 2.65 2.91 2.95 2.43 2.56 2.79 2.29 2.31 2.49 Interest on: Time and savings deposits......................................................... 41.71 12.47 21.67 25.78 30.03 32.23 34.37 34.71 39.14 40.49 42.51 48.04 49.03 Borrowed money........................................................................ 1.79 .38 .66 9.40 .53 .60 6.92 .32 .60 4.66 Al .52 2.06 (Capital notes and debentures4).............................................. (1.15) (2.00) (2.75) (.89) (1.51) (l.U) (1.04) (.87) (1.38) (l.U) (1.10) (1.27) (1.10) Occupancy expense of bank premises, net................................... 2.94 3.59 3.59 3.19 3.91 3.31 3.63 3.19 2.84 3.31 3.28 2.39 2.87 Provision for loan losses............................................................... 2.56 2.23 2.47 3.17 3.86 3.22 3.42 2.88 2.96 2.92 2.28 2.03 2.26 All other operating expenses......................................................... 14.25 19.17 17.23 15.64 17.37 16.24 15.40 18.59 14.75 14.64 15.27 12.69 13.01 Total operating expenses1................................................. 82.56 69.70 70.66 79.36 80.71 78.35 84.07 84.02 80.44 85.23 84.56 82.77 86.13 Income before taxes and securities gains (losses)........................ 17.44 30.30 29.34 20.64 19.29 21.65 15.93 15.98 19.56 14.77 15.44 17.23 13.87 Income after taxes and before securities gains (losses)............... 13.31 20.46 19.97 14.31 13.43 15.44 11.94 11.96 14.70 11.98 10.76 13.27 11.62 Net securities gains or losses (—), after taxes............................. -.11 -.31 -.07 -.16 -.09 -.19 -.06 -.18 -.14 -.04 -.07 -.09 -.11 All other income (net)................................................................... .06 .23 .05 .04 -.10 .12 .02 .05 .04 .03 .04 .07 .04 Net income1................................................................................... 13.26 20.38 19.95 14.19 13.24 15.37 11.90 11.83 14.60 11.97 10.73 13.25 11.55 A 78 MEMBER BANKS, 1974 □ SEPTEMBER 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends :3 U.S. Treasury securities.............................................................. 6.72 6.55 6.80 7.56 6.90 7.33 6.66 6.96 6.81 6.47 7.08 6.71 6.47 Other U.S. Govt, securities (agencies and corporations).......... 5.85 4.46 5.29 5.32 4.51 5.81 5.80 5.70 5.84 6.17 5.16 5.75 6.33 Obligations of States and political subdivisions........................ 4.48 3.64 4.26 4.66 3.08 4.37 4.66 3.64 4.46 4.66 3.92 4.53 4.70 All other securities...................................................................... 6.31 4.29 5.96 6.23 3.18 6.19 6.45 4.49 6.18 6.52 4.40 6.84 6.57 On loans:2 Interest, fees, and other loan income......................................... 10.15 12.72 11.29 11.19 12.71 10.89 10.72 11.65 10.17 10.11 10.58 9.70 9.46 Net loan losses (—) or recoveries5............................................. -.28 .05 -.24 -.43 -.04 -.35 -.40 -.10 . -34 -.38 -.18 -.23 -.28 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.......................................................... 10.05 15.76 11.72 5.80 14.90 10.67 6.77 15.50 10.74 7.21 13.47 11.41 7.97 Other U.S. Govt, securities (agencies and corporations). 5.75 6.19 5.01 1.70 8.25 5.76 3.33 7.64 6.64 3.55 8.90 6.69 5.20 Obligations of States and political subdivisions.................... 12.79 6.19 13.24 11.92 6.23 12.84 13.28 6.42 13.16 14.30 5.79 12.82 14.43 All other securities.................................................................. .72 .56 .44 .56 .42 .52 .60 .83 .47 .55 .81 .84 1.02 Gross loans2................................................................................ 56.19 51.06 49.87 55.90 52.44 53.48 56.23 54.37 54.59 57.30 58.51 56.85 58.24 Cash assets................................................................................... 11.73 18.05 17.48 20.53 15.04 14.15 15.81 12.56 12.00 13.40 9.85 9.23 10.03 Real estate assets......................................................................... 1.73 1.52 1.72 1.65 2.13 1.85 2.04 1.95 1.67 2.00 1.95 1.53 1.72 Percentage of gross loans:2 Commercial and industrial loans................................................ 19.16 11.61 20.60 34.71 12.29 19.75 29.88 13.34 17.66 27.89 12.05 13.88 21.13 Loans to farmers......................................................................... 12.14 24.96 16.64 3.24 25.28 17.66 5.20 23.39 18.30 4.44 17.33 14.70 4.38 Real estate loans.......................................................................... 28.32 9.73 14.57 13.49 14.54 17.47 20.86 16.31 22.63 26.42 27.29 34.71 37.64 Loans to individuals for personal expenditures......................... 26.78 25.93 28.68 25.06 24.06 27.34 27.16 23.43 27.78 28.71 25.05 25.01 27.79 All other loans2.......................................................................... 13.60 27.77 19.51 23.50 23.83 17.78 16.90 23.53 13.63 12.54 18.28 11.70 9.06 Other ratios (per cent): Interest and fees on loans to loans................................................ 8.65 8.67 9.63 8.99 8.88 9.47 8.88 8.75 9.25 8.74 8.43 8.73 Interest on time and savings deposits to time and savings deposits 6 5.15 5.66 6.69 5.63 5.68 6.56 5.52 5.72 6.37 5.62 5.66 6.01 Income taxes to net income plus income taxes............................. 28.20 27.88 20.82 23.12 23.57 18.11 22.70 20.31 11.78 23.11 18.02 9.91 Time and savings deposits to total deposits.................................. 20.48 30.49 33.88 46.02 46.13 46.29 55.29 55.68 55.34 67.08 68.30 67.81 Total capital accounts and reserves to total assets7..................... 12.95 10.33 9.02 11.44 9.34 8.30 12.13 8.58 8.30 11.45 8.36 7.91 Number of banks8................................................................................ 107 182 74 80 368 292 123 822 690 199 1,564 1,129 For notes see p. A-81. SEPTEMBER 1975 o MEMBER BANKS, 1974 A 79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY FEDERAL RESERVE DISTRICT (Averages of individual ratios expressed as percentages) All New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Item districts Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............. 11.56 9.58 7.40 10.09 12.32 10.81 10.34 11.59 12.20 11.92 13.30 13.40 9.38 11.50 9.61 7.48 10.05 12.25 10.84 10.36 11.49 12.12 11.75 13.15 13.34 9.53 Percentage of net income: Cash dividends paid....................................................................... 26.43 37.11 32.23 31.38 28.10 27.01 26.44 27.22 23.10 24.61 23.62 23.15 24.35 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................... 6.06 6.60 6.66 5.86 5.67 6.13 6.59 5.97 5.51 6.07 5.87 5.95 7.09 Salaries, wages, and fringe benefits.......................................... 1.42 1 .96 1.64 1 .17 1.18 1 .45 1.52 1.27 1.24 1.30 1 .48 1 .53 1.93 Interest on time and savings deposits...................................... 3.03 2.39 3.15 3.37 3.06 3.04 3.04 3.29 2.88 3.41 2.83 2.64 3.02 Occupancy expense of bank premises, net............................... .21 .35 .31 .18 .16 .22 .24 .19 .17 .17 .17 .24 .34 All other operating expenses..................................................... 1.40 1 .90 1 .56 1.14 1 .27 1.42 1 .79 1 .22 1 .22 1.19 1 .39 1.54 1.80 Total operating income................................................................. 7.31 7.83 7.39 6.95 7.07 7.30 7.58 7.17 6.84 7.26 7.38 7.47 8.13 Income after taxes and before securities gains (losses)1............. .95 .87 .63 .88 1.06 .91 .83 .90 .99 .87 1.11 1.13 .73 Net income..................................................................................... .94 .87 .64 .87 1.06 .91 .84 .89 .98 .86 1.10 1.12 .75 Percentage of total operating income: Interest, fees, and other loan income2......................................... 69.19 75.70 71.60 71.16 70.40 72.16 68.80 67.78 64.52 67.14 69.31 69.22 70.42 Securities—Interest and dividends:3 U.S. Treasury securities............................................................. 9.58 6.12 8.48 9.75 11.37 7.88 7.12 10.91 12.62 10.61 10.43 7.96 6.67 Other U.S. Govt, securities (agencies and corporations)........ 5.56 2.06 3.50 4.43 3.41 5.57 5.53 6.09 8.63 7.91 4.77 6.06 5.36 Obligations of States and political subdivisions...................... 8.30 6.54 8.56 8.44 9.12 8.25 9.36 8.02 8.40 7.61 8.35 8.46 5.92 All other securities..................................................................... .74 .56 1 .09 2.10 .60 .34 .71 1 .25 .56 .49 .30 .65 .44 (Service charges on deposit accounts4)....................................... (3.10) (4.05) (2.98) (1.45) (2.18) (2.26) (4.11) (2.38) (2.33) (2.74) (3.60) (4.36) (5.13) (Trust department income4)........................................................ (1.73) (2.94) (1.96) (1.59) (1.77) (1.58) (1.85) (1.75) (1.30) (1.65) (1.36) (1.46) (2.09) All other operating income........................................................... 6.63 9.02 6.77 4.12 5.10 5.80 8.48 5.95 5.27 6.24 6.84 7.65 11 .19 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages......................................................................... 16.72 21.31 18.84 14.57 14.38 16.68 17.39 15.39 15.68 15.45 17.45 18.01 20.52 Officer and employee benefits....................................................... 2.59 3.79 3.28 2.48 2.36 2.54 2.64 2.42 2.43 2.50 2.54 2.40 3.11 Interest on: Time and savings deposits......................................................... 41.71 30.51 42.79 48.56 43.49 41.87 40.46 45.97 42.28 47.32 38.64 35.57 37.59 Borrowed money........................................................................ 1.79 2.46 2.50 1.09 1.62 1.55 2.29 1.95 1.46 1.46 1.65 1.48 2.95 (Capital notes and debentures4).............................................. (1.15) (.67) (.96) (1.27) (1.12) (1.40) (1.09) (1.17) (1.07) U.09) (1.35) (1.35) (.90) Occupancy expense of bank premises, net.................................. 2.94 4.60 4.20 2.77 2.38 3.10 3.27 2.75 2.59 2.39 2.39 3.30 4.16 Provision for loan losses............................................................... 2.56 3.18 3.31 1.50 1.89 2.78 3.68 1.96 2.13 1.69 2.77 3.22 2.92 All other operating expenses......................................................... 14.25 18.22 14.68 13.95 13.93 14.90 16.47 12.56 13.57 12.76 13.65 15.24 15.67 Total operating expenses1.................................................. 82.56 84.07 89.60 84.92 80.05 83.42 86.20 83.00 80.14 83.57 79.09 79.22 86.92 Income before taxes and securities gains (losses)........................ 17.44 15.93 10.40 15.08 19.95 16.58 13.80 17.00 19.86 16.43 20.91 20.78 13.08 Income after taxes and before securities gains (losses)............... 13.31 11.37 9.07 12.46 15.33 12.99 11.35 12.85 14.81 12.17 15.48 15.60 9.36 Net securities gains or losses (*—), after taxes......................... -.11 -.07 -.02 -.10 -.07 -.05 -.13 -.05 -.20 -.19 -.17 All other income (net)................................................................... .06 .12 .17 .03 .01 .14 .05 .05 -.04 .04 .02 .08 ’“ ’.’20* Net income1................................................................................... 13.26 11.42 9.22 12.39 15.27 13.08 11.40 12.77 14.72 12.01 15.31 15.51 9.56 A 80 MEMBER BANKS, 1974 □ SEPTEMBER 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends :3 6.72 6.52 6.53 6.55 6.53 6.71 6.74 6.60 6.61 6.74 6.85 7.20 6.28 Other U.S. Govt, securities (agencies and corporations)............ 5.85 4.65 5.60 5.30 5.47 6.23 6.29 5.80 6.26 6.20 5.59 6.05 6.10 Obligations of States and political subdivisions.......................... 4.48 4.87 4.54 4.42 4.57 4.14 4.70 4.57 4.33 4.52 4.48 4.31 4.12 6.31 6.81 6.53 7.29 6.86 6.49 5.61 6.24 5.75 7.27 5.37 6.48 7.59 On loans:2 Interest, fees, and other loan income........................................... 10.15 10.51 9.86 9.25 9.59 9.80 10.60 9.52 9.34 9.42 10.80 11.65 11.35 Net loan losses (—) or recoveries5............................................... -.28 -.43 -.35 -.17 -.20 -.27 -.47 -.25 -.22 -.21 -.28 -.27 -.36 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities............................................................ 10.05 7.24 9.00 10.18 12.06 8.18 7.76 11.29 12.48 11.23 11.04 8.14 7.64 Other U.S. Govt, securities (agencies and corporations)........ 5.75 2.25 3.60 4.55 3.45 5.65 6.01 6.34 8.40 8.28 4.87 6.39 5.91 Obligations of States and political subdivisions...................... 12.79 10.42 12.93 12.61 13.74 12.87 14.18 12.38 12.57 11.67 13.19 13.29 9.81 All other securities.................................................................... .72 .69 .99 1.99 .63 .42 6.63 1.22 .55 .44 .35 .54 .48 56.19 62.91 59.14 59.94 57.76 59.13 54.87 55.62 51.60 56.42 55.29 53.82 58.58 11.73 13.29 11.25 8.49 9.96 10.61 12.99 10.54 11.97 9.68 12.89 14.92 13.12 Real estate assets........................................................................... 1 .73 2.24 1.74 1.57 1.53 2.22 2.36 1.52 1.59 1.36 1.40 1.91 2.30 Percentage of gross loans:2 19.16 27.45 22.29 14.46 14.36 15.79 22.68 17.93 16.48 18.32 18.30 23.36 24.16 12.14 1.10 2.27 3.18 5.08 2.92 2.76 12.19 10.97 22.19 29.88 15.16 5.57 Real estate loans............................................................................ 28.32 29.58 35.57 46.18 37.21 33.92 26.80 33.59 31.14 29.46 15.17 14.81 29.63 Loans to individuals for personal expenditures........................... 26.78 31.35 26.66 23.96 31.09 33,58 33.37 23.52 27.75 21.23 22.05 27.95 25.47 13.60 10.52 13.21 12.22 12.26 13.79 14.39 12.77 13.66 8.80 14.60 18.72 15.17 Other ratios (per cent): Interest and fees on loans to loans.................................................. 8.78 9.28 8.75 8.03 8.36 8.78 9.35 8.45 8.34 8.39 8.98 9.32 9.60 Interest on time and savings deposits to time and savings deposits 6. 5.87 6.01 6.01 5.48 5.44 5.80 6.26 5.78 5.71 5.83 5.91 6.11 6.16 Income taxes to net income plus income taxes............................... 17.24 23.43 15.78 13.53 14.74 16.10 11.00 17.34 20.73 19.09 20.02 17.82 19.80 Time and savings deposits to total deposits.................................... 58.95 47.23 61.42 70.06 64.66 60.70 56.53 64.17 56.84 66.01 54.11 48.87 57.60 Total capital accounts and reserves to total assets7....................... 8.75 9.42 9.29 9.14 8.86 9.51 9.15 8.12 8.57 7.87 8.62 9.06 8.94 5,630 202 307 265 453 378 601 921 425 494 814 633 137 1 Excludes minority interest in operating income, if any. 8 The ratios for 150 member banks in operation at the end studying the financial results of operations of individual banks, 2 Loans include Federal funds sold and securities purchased of 1974 were excluded from the compilations because of un­ while ratios based on aggregates show combined results for under agreements to resell. availability of data covering the complete year’s operations, the banking system as a whole and, broadly speaking, are the 3 Excludes trading-account securities. certain accounting adjustments, lack of comparability, and more significant for purposes of general analyses of credit 4 Averages exclude banks not reporting these items, or re­ so forth. and monetary problems. porting negligible amounts. Figures of revenue, expenses, and so forth, used in the 5 Net losses for banks on a valuation-reserve basis are the Note.—These ratios, being arithmetic averages of the calculations were taken from the annual income and dividends excess of actual losses over actual recoveries credited and operating ratios of individual member banks, differ in many reports for 1974. Balance sheet figures used in the compila­ charged to valuation reserves; net recoveries are the reverse. cases from corresponding ratios computed from aggregate tions were obtained by averaging the amounts shown in each For all other banks, net losses are the amount deducted from dollar amounts shown in the June 1975 issue of the Bulletin. bank’s official condition reports submitted for Dec. 31, 1973, operating income as an operating expense. Such differences result from the fact that each bank’s figures June 30, 1974, and Dec. 31, 1974. Savings deposits are in­ 6 Banks reporting no interest paid on time deposits were have an equal weight in calculation of the averages, whereas cluded in the time deposits figures used in these tables. excluded in computing this average. the figures of the many small and medium-sized banks have For details concerning comparability of income and related 7 Includes capital notes and debentures and all valuation little influence on the aggregate dollar amounts. Averages of data for 1969 and earlier years, see Bulletin for July 1970, reserves. individual ratios are useful primarily to those interested in pp. 564-72. SEPTEMBER 1975 □ MEMBER BANKS, 1974 A 81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 BUSINESS FINANCE a SEPTEMBER 1975 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1973 1974 1975 Industry 1972 1973 1974 III IV IV Total (170 corps.): Sales............................. 371,946 442,254 563,950 102,932 109,967 108,370 120,985 126,797 142,974 144,936 149,243 138,245 Total revenue.............. 376,604 448,795 572,368 104,181 111,526 109,984 123,108 128,695 145,125 147,134 151,409 140,336 Profits before taxes... 41,164 53,833 67,650 12,672 14,009 12,411 14,742 16,588 18,191 17,837 15,033 12,863 Profits after taxes........ 21,753 28,772 32,502 6,769 7,491 6,762 7,750 7,739 9,280 8,420 7,068 5,530 Memo: PAT unadj.1 21,233 28,804 32,705 6,754 7,385 6,732 7,930 7,626 9,210 8,487 7,383 5,656 Dividends.................... 10,538 11,513 12,302 2,639 2,715 2,767 3,393 2,906 2,928 3,076 3,390 3,136 Nondurable goods industries (86 corps.):2 Sales................................. 176,329 210,118 308,699 47,519 50,223 53,168 59,207 68,767 77,090 80,425 82,417 77,224 Total revenue.................. 178,915 213,904 314,256 48,259 51,191 54,098 60,357 70,049 78,552 81,905 83,746 78,547 Profits before taxes........ 21,799 30,200 46,380 6,473 7,129 7,610 8,988 11,880 11,972 12,595 9,930 9,347 Profits after taxes............ 11,154 15,538 20,536 3,390 3,667 4,018 4,463 5,056 5,728 5,464 4,291 3,567 Memo: PAT unadj.1.. 10,859 15,421 20,433 3,348 3,597 3,957 4,517 4,957 5,677 5,389 4,411 3,561 Dividends......................... 5,780 6,103 6,872 1,480 1,462 1,527 1,633 1,625 1,645 1 ,722 1,882 1,816 Durable goods industries (84 corps.):3 Sales................................. 195,618 232,136 255,251 55,413 59,744 55,202 61,778 58,029 65,884 64,511 66,826 61,021 Total revenue.................. 197,690 234,891 258,112 55,922 60,335 55,886 62,751 58,646 66,573 65,229 67,663 61,789 Profits before taxes........ 19,365 23,633 21.271 6,199 6,880 4,801 5,754 4,708 6,219 5,242 5,102 3,516 Profits after taxes............ 10,599 13,234 11,966 3,379 3,824 2,744 3,287 2,683 3,552 2,956 2,776 1,963 Memo: PAT unadj.1.. 10,374 13,383 12.272 3,406 3,788 2,775 3,413 2,669 3,533 3,098 2,973 2,095 Dividends........................ 4,758 5,410 5,430 1,159 1,253 1,240 1,760 1,281 1,283 1,354 1,508 1,320 Selected industries : Food and kindred prod. (28 corps.): Sales...................................... 37,624 42,628 52,753 9,561 10,183 11,014 11,871 11,885 12,729 13,663 14,476 13,490 Total revenue....................... 38,091 43,198 53,728 9,711 10,348 11,201 11,938 12,110 12,996 13,939 14,683 13,708 Profits before taxes.............. 3,573 3,957 4,603 897 962 1,031 1,067 1,046 1,190 1,289 1,077 1,066 Profits after taxes................. 1,845 2,063 2,298 474 499 r546 543 529 607 645 517 501 Memo: PAT unadj.1........ 1,805 2,074 2,328 453 501 r546 573 533 610 646 540 526 Dividends............................. 893 935 1,010 230 230 236 240 243 248 253 267 268 Chemical and allied prod. (22 corps.): Sales...................................... 36,638 43,208 55,084 10,153 10,693 10,828 11,534 12,507 13,892 14,606 14,078 13,618 Total revenue........................ 37,053 43,784 55,677 10,264 10,849 10,968 11,704 12,667 14,066 14,778 14,165 13,759 Profits before taxes.............. 4,853 6,266 8,264 1,487 1,606 1,599 1,572 1,856 2,293 2,194 1,920 1,641 Profits after taxes................. 2,672 3,504 4,875 835 886 901 883 1,044 1,247 1,223 1,362 925 Memo: PAT unadj.1....... 2,671 3,469 4,745 834 884 871 880 1,031 1,245 1,180 1,289 927 Dividends............................. 1,395 1,496 1,646 346 359 374 417 383 405 422 437 431 Petroleum refining (15 corps.): Sales...................................... 74,662 93,505 165,150 20,477 21,689 23,586 27,752 36,103 41,362 42,747 44,938 41,988 Total revenue....................... 76,133 95,722 168,680 20,892 22,258 23,988 28,584 36,913 42,261 43,659 45,847 42,851 Profits before taxes.............. 11,461 17,494 30,659 3,514 3,884 4,371 5,724 8,296 7,564 8,339 6,458 6,227 Profits after taxes................. 5,562 8,550 11,775 1,760 1,899 2,230 2,662 3,098 3,349 3,181 2,147 1,905 Memo: PAT unadj.1........ 5,325 8,505 11,747 1,737 1,888 2,192 2,688 3,011 3,304 3,132 2,299 1,871 Dividends............................. 2,992 3,147 3,635 777 748 789 832 864 853 899 1,019 966 Primary metals and prod. (23 corps.): Sales...................................... 34,359 42,400 54,045 9,635 10,784 10,602 11,379 11,888 13,976 14,285 13,895 12,482 Total revenue....................... 34,797 43,104 55,049 9,733 10,891 10,764 11,715 12,045 14,171 14,504 14,328 12,782 Profits before taxes.............. 1,969 3,221 5,580 618 885 799 919 973 1,586 1,791 1,229 1,015 Profits after taxes................. 1,195 1,966 3,199 383 542 480 561 589 927 1,028 655 631 Memo: PAT unadj.1........ 1,109 2,039 3,485 397 538 496 608 607 942 1,137 799 639 Dividends............................. 653 789 965 200 178 184 227 221 209 238 297 273 Machinery (27 corps.): Sales...................................... 55,615 65,041 73,452 14,828 16,035 16,306 17,871 16,830 18,836 18,853 18,935 18,245 Total revenue....................... 56,348 65,925 74,284 14,997 16,241 16,519 18,168 17,012 19,023 19,075 19,174 18,462 Profits before taxes.............. 6,358 7,669 7,643 1,705 1,880 1,936 2,149 1,829 2,074 1,943 1,797 1,727 Profits after taxes................. 3,522 4,236 4,213 933 1,034 1.069 1,200 1,006 1,149 1,074 985 971 Memo: PAT unadj.1........ 3,388 4,208 4,168 931 1,020 1.070 1,188 996 1 ,137 1,096 939 975 Dividends............................. 1,497 1,606 1,839 389 401 407 410 441 441 *476 481 483 Motor vehicles and equipment (9 corps.): Sales...................................... 70,653 83,016 80,386 21,616 22,256 17,959 21,186 18,467 20,979 19,443 21,497 18,863 Total revenue....................... 71,139 83,671 80,882 21,752 22,415 18,142 21,362 18,597 2.1,146 19,593 21,545 19,011 Profits before taxes.............. 6,955 7,429 2,919 2,716 2,704 729 1,280 636 1,115 231 938 -98 Profits after taxes................. 3,626 3,992 1,686 1,405 1,446 431 709 369 657 133 527 -127 Memo: PAT unadj.1........ 3,640 4,078 1,742 1,429 1,436 450 763 361 648 147 586 -12 Dividends............................. 1,762 2,063 1,538 369 473 404 817 384 382 386 385 301 1 Profits after taxes (PAT) as reported by the individual companies. In of returns, allowances, and discounts, and exclude excise taxes paid di­ contrast to other profits data in the series, these figures reflect company rectly by the company. Total revenue data include, in addition to sales, variations in accounting treatment of special charges and credits. income from nonmanufacturing operations and nonoperating income. 2Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not Note—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 Bulletin, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman George W. M itchell, 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’Connell, Counsel to the John M. Denkler, Managing Director Chairman J. Charles Partee, Managing Director Robert J. Lawrence, Deputy Managing Robert Solomon, Adviser to the Board Stephen H. Axilrod, Adviser to the Board Director Joseph R. Coyne, Assistant to the Board Arthur L. Broida, Assistant to the Board Gordon B. Grimwood, Assistant Director Kenneth A. Guenther, Assistant to the Board Stanley J. Sigel, Assistant to the Board and Program Director for Jay Paul Brenneman, Special Assistant to the Murray Altmann, Special Assistant to the Contingency Planning Board Board William W. Layton, Director of Equal John J. Hart, Special Assistant to the Board Norm and R. V. Bernard, Special Assistant Employment Opportunity Frank O’Brien, Jr., Special Assistant to the to the Board Board Brenton C. Leavitt, Program Director for Donald J. Winn, Special Assistant to the Banking Structure Board Peter E. Barn a, Program Director for Bank Holding Company Analysis DIVISION OF RESEARCH AND STATISTICS Lyle E. Gramley, Director Peter M. Keir, Adviser James L. Kichline, Adviser Joseph S. Zeisel, Adviser LEGAL DIVISION James B. Eckert, Associate Adviser Edward C. Ettin, Associate Adviser John D. Hawke, Jr., General Counsel John H. Kalchbrenner, Associate Adviser DIVISION OF FEDERAL RESERVE BANK John Nicoll, Deputy General Counsel John J. Mingo, Associate Adviser OPERATIONS Baldwin B. Tuttle, Assistant General Eleanor J. Stockwell, Associate Adviser Counsel Robert M. Fisher, Assistant Adviser James R. Kudlinski, Director Charles R. McNeill, Assistant to the J. Cortland G. Peret, Assistant Adviser *E. Maurice McWhirter, Associate Director General Counsel Stephen P. Taylor, Assistant Adviser W alter A. Althausen, Assistant Director Allen L. Raiken, Adviser Helmut F. Wendel, Assistant Adviser Harry A. Guinter, Assistant Director Gary M. Welsh, Adviser Levon H. Garabedian, Assistant Director A 84 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF FEDERAL RESERVE BANK OFFICE OF SAVER AND CONSUMER AFFAIRS DIVISION OF INTERNATIONAL FINANCE EXAMINATIONS AND BUDGETS Frederic Solomon, Assistant to the *Ralph C. Bryant, Director William H. W allace, Director Board and Director John E. Reynolds, Acting Director Clyde H. Farnsworth, Jr., Assistant Director Janet O. Hart, Deputy Director Robert F. Gemmill, Adviser Thomas E. Mead, Assistant Director Robert S. Plotkin, Assistant Director Reed J. Irvine, Adviser P. D. Ring, Assistant Director *Helen B. Junz, Adviser Samuel Pizer, Adviser DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY George B. Henry, Associate Adviser Charles J. Siegman, Associate Adviser Charles L. Hampton, Director Theodore E. Allison, Secretary Edwin M. Truman, Associate Adviser Bruce M. Beardsley, Associate Director Griffith L. Garwood, Assistant Secretary Glenn L. Cummins, Assistant Director tRobert Smith III, Assistant Secretary Warren N. Min ami, Assistant Director Robert J. Zemel, Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF PERSONNEL Brenton C. Leavitt, Director Keith D. Engstrom, Director Frederick R. Dahl, Assistant Director Charles W. Wood, Assistant Director Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director John T. McClintock, Assistant Director OFFICE OF THE CONTROLLER Thomas A. Sidman, Assistant Director John Kakalec, Controller William W. Wiles, Assistant Director John E. Ryan, Adviser Tyler E. Williams, Jr., Assistant Controller DIVISION OF ADMINISTRATIVE SERVICES tOn loan from the Federal Reserve Bank of Dallas. W alter W. Kreimann, Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director *On leave of absence. A85 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 Federal Open Market Committee Arthur F. Burns, Chairman Paul A. Volcker, Vice Chairman Ernest T. Baughman David P. Eastburn Robert P. Mayo Jeffrey M. Bucher Robert C. Holland George W. Mitchell Philip E. Coldwell Philip C. Jackson, Jr. Henry C. Wallich Bruce K. MacLaury Arthur L. Broida, Secretary Lyle E. Gramley, Economist Murray Altmann, Deputy Secretary (Domestic Business) Normand R. V. Bernard, Assistant Robert Solomon, Economist Secretary (International Finance) Thomas J. O’Connell, General Counsel Edward G. Boehne, Associate Economist Edward G. Guy, Deputy General Counsel *Ralph C. Bryant, Associate Economist John Nicoll, Assistant General Counsel Richard G. Davis, Associate Economist J. Charles Partee, Senior Economist Ralph T. Green, Associate Economist Stephen H. Axilrod, Economist John Kareken, Associate Economist (Domestic Finance) John E. Reynolds, Associate Economist Karl O. Scheld, Associate Economist Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations ^On leave of absence 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 Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 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 Albert D. Tinkelenberg 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 88 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; lOormore 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. Fede y r e a a l r o R r e s $ e 2 r . v 0 e 0 e B a u ch l l i e n t i t n h . e M Un o i n te th d l y S . ta $ t 2 es 0 .0 a 0 nd p i e t r s $ 1 . 9 2 6 0 7 . e 2 a 9 ch p . p. $.25 each; 10 or more to one address, 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 sions of certain other statutes affecting the Federal each; 10 or more to one address, $1.75 each. Reserve System. 252 pp. $1.25. Reappraisal of the Federal Reserve Discount Regulations of the Board of Governors of the Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Federal Reserve System 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Published Interpretations of the Board of Gov­ 10 or more to one address, $2.50 each. ernors, as of December 31, 1974. $2.50. The Econometrics of Price Determination Con­ Supplement to Banking and Monetary Statistics. ference, October 30-31, 1970, Washington, D.C. Sec. 1. Banks and the Monetary System. 1962. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 more to one address, $4.50 each. Paper ed. $4.00 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. each; 10 or more to one address, $3.60 each. Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. Federal Reserve Staff Study: Ways to Moderate 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. Fluctuations in Housing Construction, Dec. 10. Member Bank Reserves and Related Items. 1972. 487 pp. $4.00 each; 10 or more to one 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 address, $3.60 each. pp. $.35. Sec. 12. Money Rates and Securities Lending Functions of the Federal Reserve Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. Banks. 1973. 271 pp. $3.50 each; 10 or more 24 pp. $.35. Sec. 15. International Finance. 1962. to one address, $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 89 STAFF ECONOMIC STUDIES Revised Measures of Manufacturing Capacity Utilization. 10/71. Studies and papers on economic and financial subjects Revision of Bank Credit Series. 12/71. that are of general interest in the field of economic Assets and Liabilities of Foreign Branches of research. U.S. Banks. 2/72. Bank Debits, Deposits, and Deposit Turnover— Revised Series. 7/72. Summaries Only Printed in the Bulletin Yields on Newly Issued Corporate Bonds. 9/72. Recent Activities of Foreign Branches of U.S. (Limited supply of mimeographed copies of full Banks. 10/72. text available upon request for single copies) Revision of Consumer Credit Statistics. 10/72. One-Bank Holding Companies Before the 1970 The Impact of Holding Company Acquisitions on Amendments. 12/72. Aggregate Concentration in Banking, by Yields on Recently Offered Corporate Bonds. Samuel H. Talley. Feb. 1974. 24 pp. 5/73. Operating Policies of Bank Holding Companies— Capacity Utilization in Major Materials Indus­ Part II: Nonbanking Subsidiaries, by Robert J. tries. 8/73. Lawrence. Mar. 1974. 59 pp. Credit-Card and Check-Credit Plans at Commer­ Household-Sector Economic Accounts, by David cial Banks. 9/73. F. Seiders. Jan. 1975. 84 pp. Rates on Consumer Instalment Loans. 9/73. The Performance of Individual Bank Holding New Series for Large Manufacturing Corpora­ Companies, by Arthur G. Fraas. Aug. 1975. 27 tions. 10/73. pp. Money Supply in the Conduct of Monetary Policy. 11/73. Printed in Full in the Bulletin U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. Staff Economic Studies shown in list below. Capacity Utilization for Major Materials: Re­ vised Measures. 4/74. Numerical Specifications of Financial Variables REPRINTS and Their Role in Monetary Policy. 5/74. (Except for Staff Papers, Staff Economic Studies, and Inflation and Stagnation in Major Foreign In­ some leading articles, most of the articles reprinted do dustrial Countries. 10/74. not exceed 12 pages.) Revision of the Money Stock Measures and Mem­ ber Bank Deposits. 12/74. Seasonal Factors Affecting Bank Reserves. 2/58. U.S. International Transactions in 1974. 4/75. Measures of Member Bank Reserves. 7/63. Monetary Policy in a Changing Financial Envi­ Research on Banking Structure and Perform­ ronment: Open Market Operations in 1974. ance, Staff Economic Study by Tynan Smith. 4/75. 4/66. The Structure of Margin Credit. 4/75. A Revised Index of Manufacturing Capacity, Changes in Bank Lending Practices, 1974. 4/75. Staff Economic Study by Frank de Leeuw with New Statistical Series on Loan Commitments at Frank E. Hopkins and Michael D. Sherman. 11/66. Selected Large Commercial Banks. 4/75. U.S. International Transactions: Trends in Recent Trends in Federal Budget Policy. 7/75. 1960-67. 4/68. Banking and Monetary Statistics, 1974. Selected Measures of Security Credit. 12/70. series of banking and monetary statistics for 1974 Monetary Aggregates and Money Market Con­ only. 2/75, 3/75, 4/75 and 7/75. ditions in Open Market Policy. 2/71. Changes in Time and Savings Deposits at Com­ Interest Rates, Credit Flows, and Monetary Ag­ mercial Banks. October 1974-January 1975. gregates Since 1964. 6/71. 9/75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 Federal Reserve Bulletin □ September 1975 Index to Statistical Tables References are to pages A-2 through A-82 although the prefix “A” is omitted in this index (For list of tables published periodically, but not monthly, see inside back cover) ACCEPTANCES, bankers, 9, 25, 27 Demand deposits: Agricultural loans of commercial banks, 16, 18 Adjusted, commercial banks, 11, 13, 17 Assets and liabilities (See also Foreigners): Banks, by classes, 14, 17, 20, 21 Banks, by classes, 14, 16, 17, 18, 30 Ownership by individuals, partnerships, and cor­ Federal Reserve Banks, 10 porations, 24 Nonfinancial corporations, current, 41 Subject to reserve requirements, 13 Automobiles: Turnover, 11 Consumer instalment credit, 45, 46, 47 Deposits (See also specific types of deposits): Production index, 48, 49 Accumulated at commercial banks for payment of personal loans, 24 BANK credit proxy, 13 Banks, by classes, 14, 17, 20, 21, 30 Bankers balances, 16, 17, 20 Federal Reserve Banks, 10, 72 (See also Foreigners) Subject to reserve requirements, 13 Banks for cooperatives, 38 Discount rates at Federal Reserve Banks (See Interest Bonds (See also U.S. Govt, securities): rates) New issues, 38, 39, 40 Discounts and advances by Reserve Banks (See Loans) Yields and prices, 28, 29 Dividends, corporate, 41, 82 Branch banks: Assets, foreign branches of U.S. banks, 70 EMPLOYMENT, 50, 52 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 22, 71 FARM mortgage loans, 42 Brokerage balances, 69 Federal agency obligations, 9, 10, 11 Business expenditures on new plant and equipment, 41 Federal finance: Business indexes, 50 Receipts and outlays, 32, 33 Business loans (See Commercial and industrial loans) Treasury operating balance, 32 Federal funds, 5, 16, 18, 21, 27 CAPACITY utilization, 50 Federal home loan banks, 37, 38 Capital accounts: Federal Home Loan Mortgage Corporation, 37, 42, 43 Banks, by classes, 14, 17, 22 Federal Housing Administration, 42, 43, 44 Federal Reserve Banks, 10 Federal intermediate credit banks, 37, 38 Central banks, 60, 75 Federal land banks, 37, 38, 42 Certificates of deposit, 22 Federal National Mortgage Assn., 37, 38, 42, 43, 44 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 13, 16 Condition statement, 10 Weekly reporting banks, 18, 23 U.S. Govt, securities held, 2, 10, 11, 34, 35 Commercial banks: Federal Reserve credit, 2, 4, 10, 11 Assets and liabilities, 13, 14, 16, 17, 18 Federal Reserve notes, 10 Consumer loans held, by type, 45 Federally sponsored credit agencies, 37, 38 Deposits at, for payment of personal loans, 24 Finance companies: Loans sold outright, 25 Loans, 18, 46, 47 Number, by classes, 14 Paper, 25, 27 Real estate mortgages held, by type of holder and Financial institutions, loans to, 16, 18 property, 42-44 Float, 2 Commercial paper, 23, 25, 27 Flow of funds, 56, 57 Condition statements (See Assets and liabilities) Foreign: Construction, 50, 51 Currency operations, 9, 10 Consumer credit: Deposits in U.S. banks, 3, 10, 17, 21, 72 Instalment credit, 45, 46, 47 Exchange rates, 75 Noninstalment credit, 45 Trade, 59 Consumer price indexes, 50, 53 Foreigners: Consumption expenditures, 54, 55 Claims on, 66, 67, 68, 72, 73, 74 Corporations: Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 Profits, taxes, and dividends, 41 Sales, revenue, profits, and dividends of large GOLD: manufacturing corporations, 82 Certificates, 10 Security issues, 39, 40 Reserves of central banks and Security yields and prices, 28, 29 govts., 60 Cost of living (See Consumer price indexes) Stock, 2, 59 Currency and coin, 3, 16 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 DEBITS to deposit accounts, 11 HOUSING permits, 50 Debt (See specific types of debt or securities) Housing starts, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 91 References are to pages A-2 through A-82 although the prefix “A” is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 44 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property Insured commercial banks, 14, 16, 17, 24 mortgaged, 42-^4 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 SALES, revenue, profits, and dividends of large manu­ Investment companies, issues and assets, 40 facturing corporations, 82 Investments (See also specific types of investments): Saving: Banks, by classes, 14, 16, 19, 30 Flow of funds series, 56, 57 Commercial banks, 13 National income series, 54, 55 Federal Reserve Banks, 10, 11 Savings and loan assns., 31, 35, 42, 44 Life insurance companies, 31 Savings deposits (See Time deposits) Savings and loan assns., 31 Savings institutions, principal assets, 30, 31 Securities (See also U.S. Govt, securities): LABOR force, 52 Federally sponsored agencies, 37, 38 Life insurance companies (See Insurance companies) International transactions, 68, 69 Loans (See also specific types of loans): New issues, 38, 39, 40 Banks, by classes, 14, 16, 18, 30 Yields and prices, 28, 29 Commercial banks, 13, 14, 16, 18, 23, 25, 26 Special Drawing Rights, 2, 10, 58, 59 Federal Reserve Banks, 2, 4, 6, 10, 11 State and local govts.: Insurance companies, 31, 44 Deposits, 17, 20 Insured or guaranteed by U.S., 42, 43, 44 Holdings of U.S. Govt, securities, 34, 35 Savings and loan assns., 31 New security issues, 38, 39 Ownership of securities of, 16, 19, 30 MANUFACTURERS: Yields and prices of securities, 28, 29 Capacity utilization, 50 State member banks, 15, 24 Production index, 49, 50 Stock market credit, 29, 30 Margin requirements, 8 Stocks (See also Securities): Member banks: New issues, 39, 40 Assets and liabilities, by classes, 14, 16, 17 Yields and prices, 28, 29 Borrowings at Federal Reserve Banks, 4, 10 Number, by classes, 14 TAX receipts, Federal, 33 Operating ratios, 76-81 Time deposits, 8, 13, 14, 17, 21, 22 Reserve position, basic, 5 Treasury currency, Treasury cash, 2, 3 Reserve requirements, 7 Treasury deposits, 3, 10, 32 Reserves and related items, 2, 4, 13 Treasury operating balance, 32 Mining, production index, 49 Mobile home shipments, 51 UNEMPLOYMENT, 52 Money market rates (See Interest rates) U.S. balance of payments, 58 Money stock and related data, 12 U.S. Govt, balances: Mortgages (See Real estate loans and Residential Commercial bank holdings, 17, 20 mortgage loans) Member bank holdings, 13 Mutual funds (See Investment companies) Treasury deposits at Reserve Banks, 3, 10, 32 Mutual savings banks, 20, 30, 34, 42, 44 U.S. Govt, securities: Bank holdings, 14, 16, 19, 30, 34, 35 NATIONAL banks, 14, 24 Dealer transactions, positions, and financing, 36 National defense expenditures, 33 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 National income, 54, 55 Foreign and international holdings, 10, 66, 68, 72 Nonmember banks, 15, 16, 17, 24 International transactions, 66, 68 New issues, gross proceeds, 39 OPEN market transactions, 9 Open market transactions, 9 Operating ratios, member banks, 76-81 Outstanding, by type of security, 34, 35 Ownership, 34, 35 PAYROLLS, manufacturing index, 50 Yields and prices, 28, 29 Personal income, 55 Utilities, production index, 49 Prices: Consumer and wholesale commodity, 50, 53 VETERANS Administration, 43, 44 Security, 29 Prime rate, commercial banks, 26 WEEKLY reporting banks, 18-22 Production, 48, 49, 50 Profits, corporate, 41, 82 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the partic­ n.e.c. Not elsewhere classified ular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for __ (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Sales, revenue, profits, and Banks and branches, number. dividends of large manu­ by class and State ........... Apr. 1975 A-76—A-77 facturing corporations __ Sept. 1975 A-82 Semiannually Flow of funds: Number of banking offices: Assets and liabilities: Analysis of changes ....... Aug. 1975 A-76 1962-73 ......................... Oct. 1974 A-59.I4—A-59.28 On, and not on, Federal Reserve Par List ........... Aug. 1975 A-77 Flows: 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: Banking and monetary statistics: Calendar year ................ June 1975 A-80—A-89 1974 ..................................... Feb. 1975 A-84—A-85 Income ratios ................ June 1975 A-90—A-95 Mar. 1975 A-79—A-82 Operating ratios ........... Sept. 1975 A-76—A-81 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