Federal Reserve Bulletin, 1975-12

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

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

FEDERAL RESERVE BULLETIN NUMBER 12 • VOLUME 61 • DECEMBER 1975 CONTENTS 829 Financial Developments A 1 Financial and Business Statistics in the Third Quarter of 1975 A 1 Contents 844 Statements to Congress A 2 U.S. Statistics A 58 International Statistics 873 Record of Policy Actions A 78 Board of Governors and Staff of the Federal Open Market Committee A 80 Open Market Committee and Staff; 880 Law Department Federal Advisory Council 911 Announcements A 81 Federal Reserve Banks and Branches 916 Industrial Production A 82 Federal Reserve Board Publications A 86 Index to Statistical Tables A 88 Index to Volume 61 A 98 Guide to Tabular Presentation Statistical Releases: Reference Inside Back Cover: Map of Federal Reserve System 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 BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the Third Quarter of 1975 This report, which was sent to the Joint Eco- money market conditions began to ease in early nomic Committee of the U.S. Congress on No- October. In addition, the Board of Governors vember 17, 1975, highlights the important de- announced on October 15 that reserve requirevelopments in financial markets during the ments on member bank time deposits with an summer and early fall. original maturity of 4 years or more would be reduced from 3 per cent to 1 per cent, effective The monetary aggregates, following a period of in the statement week ending November 5. This unusually rapid growth during May and June, action was designed primarily to encourage expanded at lower rates during the third quarter. banks to lengthen the maturity structure of their The moderation began early in July, as the liabilities, but it was also expected to release special Federal payments that had contributed about $350 million in reserves to meet seasonal to the previous rapid growth in the aggregates needs and to facilitate moderate growth in the were completed and as recipients proceeded to monetary aggregates. adjust their temporarily large cash balances to While the growth rates of the monetary agdesired levels. With the weakness in the aggre- gregates, particularly the narrowly defined gates persisting, Federal Reserve open market money stock, were markedly slower during each operations became more accommodative, and month of the third quarter, the rates of growth Interest rates NOTES: Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; Prime commercial paper, dealer offering rates; Conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development; Corporate bonds, weighted averages of new 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. Treasury; State and local govt, bonds (20 issues, mixed quality) Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Federal Reserve Bulletin • December 1975 » from the second quarter to the third quarter were pected Treasury financing operations, and Fedstill high by historical standards. Measured on eral Reserve actions taken in late June to moda quarterly-average basis, M grew at an annual erate the rapid growth of the money stock. x rate of about 7 per cent in the third quarter— However, the rise in most rates slowed as the only moderately below the rapid 8V2 per cent quarter progressed and short-term credit derate of the preceding quarter—and close to the mands of business remained relatively weak. upper end of the longer-run target growth range Then, as the fourth quarter began, a reversal of 5 to IV2 per cent specified by the Federal of the uptrend in interest rates occurred, fostered Open Market Committee. The more broadly in part by the easing actions of the Federal defined aggregates—M and M —expanded at Reserve. 2 3 annual rates of about IOV2 per cent and 13 per Domestic interest rates rose relative to rates cent, respectively, on a quarterly-average basis. abroad during most of the third quarter, as Most short-term market rates of interest in- economic recovery lagged in other major induscreased by 75 to 100 basis points during the trial nations. Because of shifts in international third quarter. In late June and in July market interest rate differentials and because of recent yields rose appreciably, reflecting the recovery large U.S. trade surpluses, the dollar continued in economic activity, the sharp increases in to appreciate in foreign exchange markets durwholesale and consumer prices, larger-than-ex- ing most of the third quarter, and many foreign TABLE 1 Changes in selected monetary aggregates In per cent, seasonally adjusted annual rates 1974 1975 IItteemm 11997733 11997744 NOTES: Q4 Q1 Q2 Q3 1 Total reserves less required reserves for U.S. Government and in- Member bank reserves: terbank deposits. Total 7.9 8.5 3.6 -8.3 1.2 -2.1 2 Mi is currency plus private de- Required reserves 7.8 8.8 2.9 -7.7 1.2 -2.1 mand deposits adjusted. Nonborrowed 7.3 10.7 36.0 -1.4 -.2 -4.1 Available to support private Af2 is Mt plus bank time and savnonbank deposits1 9.2 8.9 .8 -4.7 .5 -2.5 ings deposits adjusted other than large CD's. Concepts of money2 calculated from: Af3 is M2 plus deposits at mutual End-month of quarter—- savings banks and savings and loan M, 6.1 4.8 5.3 .8 11.2 2.2 associations and credit union shares. M M M 2 4 3 1 8 8 1 . . . 8 8 6 1 7 6 0 . . . 8 2 6 9 6 6 . . . 0 7 9 7 9 6 . . . 9 6 3 1 1 8 5 3 . . . 6 7 4 9 6 2 . . . 7 3 9 CD M 's 4 . is M2 plus large negotiable Ms 10.6 9.0 8.4 8.8 12.3 7.2 M5 is M3 plus large negotiable CD's. Quarterly average— 3Savings and loan associations, MI 6.3 5.2 3.9 -.3 8.6 6.9 mutual savings banks, and credit M2 8.9 7.7 6.2 5.8 11.2 10.4 unions. M3 9.0 7.1 5.8 7.8 13.8 13.1 4 Total member bank deposits plus M M 5 4 1 1 1 2 . . 1 0 1 9 0 . . 0 7 7 6 . . 3 6 7 8 . . 4 8 1 6 0 . . 6 6 9 5 . . 9 6 f r u o n w d i s n g p s ro a v n i d d ed b a b n y k -r E e u la r t o e - d d ol c l o ar m m bo e r r - - Time and savings deposits at: cial paper. Commercial banks (other than large CD's) 11.4 9.4 7.9 13.4 15.3 9.7 NOTE.—Changes are calculated Nonbank thrift institutions3 8.9 6.0 7.2 13.7 19.3 15.2 from the average amounts outstand- Bank credit proxy, adjusted4 10.4 10.2 4.2 3.1 7.5 -1.3 ing in the last month of each quarter, except the quarterly-average calculations of concepts of money, which MEMO (change in billions of are based on changes in the average dollars, seasonally adjusted): amounts outstanding for a quarter. Large CD's 19.9 26.5 5.5 -.5 -5.7 -5.0 Annual rates of growth have been U.S. Govt, demand deposits at all adjusted for changes in reserve remember banks -1.7 -2.0 -4.4 -1.2 3.1 -0.8 quirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q3 1975 835-831 official institutions liquidated dollar assets in Changes in the income velocity of Mj and M 2 order to moderate the depreciation of their own Percentage rate of change currencies. Foreign monetary authorities redeemed a significant volume of official holdings of nonmarketable Treasury securities during the quarter in order to obtain funds for exchange market intervention. Changes in relative interest rates in the United States and abroad also contributed to the apparent reduction in funding by commercial banks of their own foreign branches in the third quarter. Long-term interest rates continued to rise during the third quarter, an increase associated in part with the increase in the short-term rates. This rise in long-term rates occurred despite the fact that corporate security offerings, which had been unusually large during the first half of the year, declined appreciably in the third quarter. The increased volume of new Treasury and municipal issues contributed to the upward pressure on long-term rates; and in addition, the municipal market was subjected to increasing strains arising from New York City's financing problems. There was also an appreciable increase in mortgage rates, in association with Data are at seasonally adjusted annual rates of growth. rising rates in other markets as well as concern on the part of thrift institutions about the outlook of an economic recovery, the income velocity for future deposit inflows. of money—both V the ratio of GNP to M u l9 and V , the ratio of GNP to M —increased in 2 2 the third quarter. While the increase in V was x unusually large by the standards of a typical MONETARY AGGREGATES postwar-period recovery, it reflected in part an During the third quarter the growth rates of the adjustment to the decrease in V associated with 1 monetary aggregates—measured on an end- the temporary bulge in M in the second quarter. t month-of-quarter basis—slowed markedly, par- Growth in the more broadly defined monetary ticularly Mi. The level of currency and demand aggregates slackened during the third quarter, deposits, having risen sharply in May and June in large part because of the slowdown in the because of the sizable volume of special Treas- growth of Mi and to a lesser extent because ury disbursements for tax rebates and social of a moderation in savings flows. Savings insecurity payments, provided sufficient cash to flows to depositary institutions continued to finance the large nominal increase in gross na- show relatively strong growth early in the quartional product that occurred in the third quarter ter, but the rate of expansion weakened as the with only a moderate further increase in the quarter progressed. Consumer-type time and money supply. savings deposits at commercial banks increased Measured on a quarterly-average basis, the at an annual rate of about 10 per cent, compared slackening in the growth rates of the monetary with a 15 per cent rate in the previous quarter. aggregates was much less pronounced. More- The rate of growth of savings flows at nonbank over, as typically occurs during the early phase thrift institutions, although below the extraor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • December 1975 » dinary 19 per cent second-quarter pace, was at loans and nonfinancial company commercial an annual rate of more than 15 per cent. The paper, remained relatively weak because of flow of savings to depositary institutions mod- continued inventory liquidation. Moreover, erated somewhat in the latter part of the quarter, many corporations were in a substantially imwhen the Treasury auctioned intermediate-term proved liquidity position in the third quarter notes at interest rates that were quite attractive because of enlarged profits and proceeds from relative to those paid on consumer-type time earlier capital market issues. deposits. Banks continued to permit large negotiable certificates of deposit (CD's) to run off through Components of Major categories of August, since the growth in demand deposits bank credit bank loans and in other categories of time deposits was sufficient to meet bank needs for funds. The contraction in outstanding CD's over the quarter as a whole was $5 billion, almost as large in absolute terms as the record $5.7 billion decline in the second quarter. In view of the uncertain outlook with respect to municipal markets and to certain types of loans, however, some banks sought to improve their liquidity by adjustments in their CD positions. The volume of CD's outstanding rose sharply in September and early October, and a few banks began to extend the average maturity of their CD's. BANK CREDIT AND COMMERCIAL PAPER Total loans and investments at all commercial banks rose at a somewhat faster rate in the third quarter than in the preceding period. Banks continued to add to their holdings of Treasury and other securities; but the rate of acquisition, particularly for U.S. Government securities, Seasonally adjusted. Total loans and business loans adjusted was much below that of previous quarters, as for transfers between banks and their holding companies, deposit flows slowed and loan demand was affiliates, subsidiaries, or foreign branches. Incorporates revisions based on June 30, 1975, reports of generally less weak. There was a modest rise condition. in total loans outstanding—the first such increase since the third quarter of 1974. Business Commercial paper rates rose appreciably loans continued to contract, but at a much during the third quarter, with most of the inslower pace than in the first half of the year; crease occurring early in the period. The prime the decline was more than offset by increases rate charged by the majority of commercial in other loan categories, particularly consumer banks was raised in several steps from 7 per and real estate loans. cent in early July to 8 per cent in mid-September Despite the greater strength in economic ac- as bank costs of funds rose, so the spread tivity, business needs for short-term credit, as between bank prime rates and commercial paper measured by the combined total of business rates increased moderately over the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q3 1975 835-833 TABLE 2 Net mortgage debt formation continued to expand during the third quarter of 1975, with Rate spreads and changes in most of the increase again concentrated in resibusiness loans and commercial paper1 dential mortgages. Increased lending by savings and loan associations accounted for most of the Change gain in total mortgage debt formation, although Rate spread In billions of dollars3 the pace of mortgage lending also increased AAnnnnuuaall Period p ( o b i a n s t i s s ) 2 rraattee ffoorr slightly at other depositary institutions. Direct Busi- Commerttoottaall support of the mortgage market by the Federally ness cial Total ((ppeerr loans4 paper5 cceenntt)) sponsored credit agencies increased in the third quarter, owing to higher net mortgage purchases 1974— by the Federal National Mortgage Association Q4 1.6 .5 2.1 4.3 and Government National Mortgage Associa- 1975— Q1 -1.6 .8 -.8 -1.6 tion. Q2 -4.5 -1.5 -6.0 -12.1 Q3 -.3 -.3 -.6 TABLE 3 July 100 1.2 .5 1.7 10.6 Aug. 129 -.1 .2 .1 .6 Sept. 135 -1.1 -1.0 -2.1 -13.0 Net change in mortgage debt outstanding 1 Incorporates revisions based on June 30, 1975, reports of In billions of dollars, seasonally adjusted annual rates condition. 2Prime rate less 30- to 59-day commercial paper rate. 1974 1975 3Seasonally adjusted. 4 At all commercial banks based on last-Wednesday-of- CChhaannggee—— month data; adjusted for outstanding amounts of loans sold Q3 Q4 Ql Q2 eQ3 to affiliates. 5Nonfinancial company paper measured from end-of-month By type of debt: to end-of-month. Total 50 39 35 51 56 Residential 36 24 26 40 44 Other1 14 15 9 11 12 NONBANK At selected institutions: INTERMEDIARIES AND Commercial banks .. 9 7 3 2 3 Savings and loans .. 14 11 17 30 35 THE MORTGAGE MARKET Mutual savings banks 2 (2) 2 2 3 Insurance companies 5 5 5 4 2 FNMA-GNMA 8 7 5 3 5 Deposit growth at both savings and loan associations and mutual savings banks moderated Memo: FHLB advances during the third quarter from the exceptionally to S&L's 6 4 -3 -9 -2 rapid pace in the first half of the year. Sizable 1 Includes commercial and other nonresidential as well as inflows were recorded early in the quarter, bolfarm properties. stered by the Federal income tax rebates and 2Less than $500 million. e Estimated. supplementary social security payments disbursed by the Treasury in May and June. As In the primary market for home mortgages, the quarter progressed, the waning effect of interest rates on new commitments began movthese special payments and the rise in open ing upward in late August after several months market interest rates resulted in a tapering-off of little change. Yields in the secondary market of inflows; deposits expanded during September turned upward in July and rose more sharply at their slowest pace since January 1975. Sav- than did primary market yields. Secondary ings and loan associations continued to reduce market yields on mortgages insured by the Fedtheir indebtedness to the Federal home loan eral Housing Administration increased about banks over the third quarter as a whole, but the three-fourths of a percentage point over the third net repayment was considerably smaller than quarter and reached their highest levels of the during the second quarter. year in early October. In response to the rise Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • December 1975 » in mortgage yields, the maximum contract rate problems of New York City. Prices of stocks on mortgages insured by the FHA or guaranteed of major banks and bank holding companies by the Veterans Administration was raised to declined by approximately 20 per cent during 9 per cent in early September from the 8V2 per the third quarter, reflecting investor uncertainty cent level established in late April. and concern over the impact of these and other events on bank earnings. Developments in the municipal securities Deposits of savings and loans market continued to be dominated by the fiand of mutual savings banks nancing problems of New York. The Municipal Annual rate of change, per c Assistance Corporation (MAC), a State agency created to help provide a solution to New York 16 City's financial plight, placed $1 billion of new bonds with underwriters in early July, but a large portion of the issue remained unsold at 8 the original terms and the securities later dropped sharply in price. In mid-August MAC returned to the market with a new $840 million 0 issue, but two-thirds of the issue had to be Q3 Q4 Q1 Q2 Q3 1974 1975 privately placed due to poor pre-sale response by investors. In early September the New York Seasonally adjusted. Changes based on month-end figures. State legislature adopted a $2.3 billion assistance plan calculated to carry the city through SECURITIES MARKETS early December and entailing considerable State control over the city's fiscal affairs. New Gross offerings of new securities by domestic York State sold $755 million of short-term secorporations fell in the third quarter to $47 curities in mid-September (one-third of the billion at a seasonally adjusted annual rate. amount being earmarked for the city as part of Issues of bonds declined to an annual rate of the financial plan), but more than two-thirds of $36 billion from the $47 billion total recorded that issue also had to be privately placed as in the previous quarter. Industrial and financial investors became concerned over the possible corporations, which had accounted for more than two-thirds of the record volume in the first 6 months of 1975, greatly reduced their offer- TABLE 4 ings of medium- and long-term debt securities. Offerings of new security issues Public utilities also sold less long-term debt In billions of dollars, seasonally adjusted annual rates during the third quarter, but the reduction was not so large as the fall-off in non-utility issues. 1974 1975 Improved internal sources of funds, sluggish TTyyppee ooff iissssuuee capital expenditures, higher interest rates, and Q3 Q4 Ql Q2 eQ3 a diminished need for balance-sheet restructur- Corporate ing all were factors in the lower volume of new securities—Total ... 36 43 61 r61 47 issues. Bonds 30 37 52 r47 36 New stock offerings also declined during the Stocks 6 6 9 r14 n x >. third quarter. Contributing to the reduction was State and local govt. a 10 per cent decline in stock prices that oc- bonds 19 26 r27 r33 *36 curred over the quarter as investors became 1 Includes $1.1 billion of privately placed Municipal Assistconcerned about higher interest rates, a resur- ance Corporation bonds. e Estimated. gence in the rate of inflation, and the financing r Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q3 1975 835-843 implications of the State's involvement in the curities increased to a total of $36 billion at a city's fiscal problems. seasonally adjusted annual rate during the third Gross new issues of long-term municipal se- quarter, a record level of offerings. More than 25 per cent of this total was attributable, however, to the substitution of long-term borrowings by the newly created MAC for maturing short- TABLE 5 term New York City debt. Major municipal Federal Government bond yield indexes moved steadily higher over borrowing and cash balance most of the third quarter and by late September Quarterly totals, in billions of dollars, not seasonally adjusted were at unprecedented levels. These record yields were largely the result of the price erosion 1974 1975 of obligations with less-than-prime ratings as IItteemm yield spreads among the various quality cate- Q3 Q4 Ql Q2 Q3 gories of tax-exempt securities widened. Yields on high-grade municipal bonds compared with Treasury financing: yields on U.S. Government or high-grade cor- Budget surplus, porate bonds remained about in line with their or deficit (—) -1.6 -12.0 -18.0 -12.0 -18.5 Net cash bor- historical relationship. rowings, or Yields on both short- and long-term Treasury repayments (-) ......... 4.5 10.3 19.5 16.6 23.5 securities moved higher over most of the third Other means of quarter as the Treasury continued to finance the financing1 .. -3.4 -1.1 -.8 -3.6 -2.0 Change in cash largest Federal deficit in history. A $1.8 billion balance -.5 -2.8 .7 1.0 2.9 net redemption of nonmarketable securities by Federally spon- foreign governments added to the amount of sored credit funds raised by the Treasury through the sale agencies, net cash borrow- of marketable obligations. In late September and ings2 7.7 3.4 .1 -.2 e.8 early October, however, yields moved lower when the System acted to ease money market MEMO (net cash conditions in response to slow growth in the borrowings, seasonally monetary aggregates. Commercial banks conadjusted antinued to be large net purchasers of Treasury nual rate): By Treasury .. 20 16 68 99 97 securities during the quarter, but a rise in the By Federally volume of noncompetitive tenders for Treasury sponsored credit agen- bill and note auctions suggests that individuals cies 24 16 7 -3 —4 acquired Treasury securities at a more rapid Checks issued less checks paid, outlays of off-budget Fed- pace than during the second quarter. The Federal agencies, accrued items, and other transactions. 2 Includes debt of the Federal Home Loan Mortgage Cor- eral Reserve System also acquired more than poration, Federal home loan banks, Federal land banks, Federal $1 billion of long-term Treasury and Federal intermediate credit banks, banks for cooperatives, and Federal National Mortgage Association (including discount notes and agency securities in the course of providing securities guaranteed by the Government National Mortgage reserves to the banking system during the Association). quarter. • ^Estimated. Page 844 follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 Statements to Congress Statement by Brenton C. Leavitt, Director, Di- crimes against banks, we will continue to make vision of Banking Supervision and Regulation, every reasonable effort to thwart the efforts of Board of Governors of the Federal Reserve criminals. Moreover, our regulation is designed System, before the Subcommittee on Financial to aid law enforcement authorities in appre- Institutions Supervision, Regulation, and In- hending and obtaining convictions against those surance of the Committee on Banking, Cur- who commit criminal acts. rency, and Housing, U.S. House of Repre- Today I wish to respond to several questions sentatives, November 19, 1975. contained in your letter and enclosure. This testimony should assist your subcommittee in Mr. Chairman and members of the subcommit- its efforts to evaluate the effectiveness of the tee, my name is Brenton C. Leavitt, and I am Bank Protection Act of 1968 in light of the Director of the Division of Banking Supervision substantial increase in crimes against banks. and Regulation of the Board of Governors of I do speak for only the Board of Governors the Federal Reserve System. In my capacity as and am not in a position to represent or express a bank supervisor, I am responsible for en- the views of other official government agencies forcement of the Bank Protection Act of 1968 or law enforcement authorities also confronted and the Board's Regulation P, promulgated with this very serious problem. As indicated under the authority of that Act, as both the Act later in my testimony, banks under the jurisand the regulation apply to State chartered banks diction of the Federal Reserve are only a fracthat are members of the Federal Reserve Sys- tion of all banks. tem. Subsequent to enactment of the Bank Protec- At the outset I would like to state that the tion Act of 1968, the four Federal financial Board and its staff share your concern with the supervisory agencies (the Comptroller of the rising incidence of crime. It was particularly Currency, the Federal Deposit Insurance Cordisheartening to learn from the latest crime data poration, the Federal Home Loan Bank Board, released by the Federal Bureau of Investigation and the Federal Reserve System) cooperatively that crimes against financial institutions rose developed a uniform regulation establishing nearly 51 per cent during fiscal year 1975. minimum standards with which each bank and The problem of crime against banks is not savings and loan association is required to new and has always been a matter of real comply. Standards are prescribed for the instalconcern to all banks, bank supervisors, and law lation, maintenance, and operation of security enforcement agencies. However, robberies of devices, and for procedures to discourage robfinancial institutions are but part of the general beries, burglaries, and larcenies, and to assist increase in crime. Increases in this crime are in the identification and apprehension of persons only about half that of similar crimes against who commit such crimes. chain stores. Crimes against financial institu- Effective January 13, 1969, each agency tions remain a matter of serious concern to adopted the uniform regulation and each then Board members. With respect to State member developed its own programs and procedures for banks, we believe we have done that which is enforcement. Since that time the four agencies required by the law in as effective a way as have cooperated closely in issuing interpretawe can. While we can never hope to eliminate tions, considering proposed changes in the uni- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 845 form regulation, and effecting amendments security devices considered ample to discourage thereto. Under the Act, each agency has sole crimes and to assist in identification and appreresponsibility for enforcement of the regulation hension of those who commit crimes against for institutions under its jurisdiction. No single them are to be maintained. Smaller banks loagency has over-all responsibility for the Bank cated in areas substantially free of crime are not Protection Act. expected to maintain costly and elaborate secu- In implementing the uniform regulation, the rity systems, but they are expected to maintain Federal Reserve System notified its some 1,260 a security program reasonable in the circum- State member banks and their approximately stances in which their offices are located. Banks 3,500 branches of the requirements of the Bank choosing not to install security devices at least Protection Act and Regulation P. It also directed equivalent to the minimum standards outlined the officer in charge of examinations at each in the regulation are required to file with the Federal Reserve Bank to instruct examiners to district Reserve Bank a statement of the reasons review the security program and procedures of for the decision. At each annual examination, each bank at each examination to determine the security program is reviewed by examiners compliance with the statute and regulation. for adequacy and, if the reasons for not install- I will not attempt to discuss all the provisions ing the minimum security devices are not valid, and requirements of Regulation P, which I have management is requested to take corrective acenclosed with copies of my testimony that was tion. given earlier to your staff. However, I would A recent survey of State member banks indilike to mention briefly the salient requirements cates that of the some 4,700 banking offices of the regulation. Each bank is required to have under the jurisdiction of the Federal Reserve, a security officer designated by its board of about 97 per cent have robbery alarms at tellers directors and a written security program ap- stations, about 99 per cent have burglary alarms proved by that board and filed with the appro- in their vaults or principal storage area for priate district Reserve Bank. The regulation also valuables, and approximately 80 per cent have requires that the security officer of each State cameras installed in their lobbies. Although we member bank determine the needs of the indi- have been reasonably satisfied with the number vidual offices of his bank with respect to security of security devices installed in State member devices and, after consultation with law en- banks, we have focused on the remaining 20 forcement agencies, provide for the installation, per cent of the banking offices without cameras maintenance, and operation of such devices. In to insure that none of the offices is located in determining the appropriateness of security de- a high crime area. It has been the practice of vices, each security officer is required to con- our examiners in the past few years to encourage sider such factors as: management of banks having offices without 1. incidence of crime in the area in which cameras in low crime areas to install equipment each office is located; if such offices have been victims of a robbery. 2. the amount of currency and other valuables Currently, in cooperation with the other Fedmaintained at the individual office; eral agencies, including the FBI and the Ameri- 3. the distance of the office from the nearest can Bankers Association, we are in the process law enforcement authority and the time required of developing an up-to-date map of high crime for police to arrive at the office; areas. When this is completed, we will contact 4. the cost of the security devices; the banking offices in those areas that do not 5. other security measures already in effect have cameras, and as of now we plan to urge at each office; and them to install cameras regardless of whether 6. the physical characteristics of the banking their offices have in fact been robbed. In addioffice and its surroundings. tion, our review will include those offices out- The regulation makes it clear that at each side the high crime areas that have no cameras banking office in an area with high crime rates and that have been robbed at least once in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 Federal Reserve Bulletin • December 1975 » past year. Depending on circumstances, these Nevertheless, we continue to stress the need for offices, too, may be urged to install equipment. banks to provide as much assistance as possible With this background, I would like to turn to law enforcement authorities. to the specific questions you identified as matters 2. "whether the regulations should be of concern in your letter and enclosed material. changed—and in what areas—to provide finan- I will cite the specific area of concern and then cial institutions with better protection. . ." offer comments. In our judgment the present regulation adequately fulfills the mandate of the Bank Protec- 1. "why the regulations have stressed appretion Act. We feel that compliance by banks can hension over deterrence. . ." be and is more reasonably and equitably ac- The Bank Protection Act requires that, "each complished under the existing regulation than Federal supervisory agency shall promulgate under a regulation that would be less discrerules establishing minimum standards with tionary in its application to the varied conditions which each bank or savings and loan association confronting both large and small banks. must comply with respect to the installation, maintenance, and operation of security devices, 3. "why the agencies have chosen not to reasonable in cost, to discourage robberies, enforce their regulations by using the mandaburglaries and larcenies and to assist in the tory civil fine provisions of the Act. . . " apprehension of persons who commit such It has been the experience of the Federal acts" (emphasis added). Reserve that deficiencies have not been inten- In developing the regulation we endeavored tional and are usually corrected when brought to serve both purposes of the Act, that is, to to the attention of the bank. Imposition of civil discourage crimes and to assist in the apprehenpenalties in these situations has thus far been sion of criminals. We believe that the present deemed unnecessary. We recently considered regulation provides for the types of security imposing civil penalties against a bank, but devices and procedures intended by the Act and deferred such action as compliance is now indithat such devices and procedures may deter cated. Should any bank refuse to comply with crime and do aid in the apprehension and conthe Act or Regulation P, we propose to use the viction of criminals. In some areas we have civil fine provisions of the Act. stressed devices to aid in apprehension on the advice of law enforcement authorities. We, of 4. "whether the legal responsibilities of bank course, have no knowledge of the extent to directors should be extended to the area of bank which the required devices have prevented rob- protection. . beries and burglaries from rising even higher. Section 216.2 of the Board's Regulation P But we are concerned with the fact that, while states that 4 4. . .the board of directors of each the number of security devices installed by State member bank shall designate an officer or banks has increased, the incidence of crime other employee of the bank who shall be continues to rise. Many bankers report to us that charged, subject to supervision by the bank's they seriously question the value of such devices board of directors, with responsibility for the as deterrents. A recent FBI report indicates that installation, maintenance, and operation of sein fiscal year 1975, 97 per cent of the victim curity devices and for the development and institutions had alarms and 76 per cent had administration of a security program which surveillance cameras. The legislative history of equal or exceed the standards prescribed. . the Bank Protection Act indicates that antici- We believe the regulation already places full pated increased effectiveness of law enforce- responsibility on bank directors, and we see no ment through increased bank assistance would need for further legislative action in this respect. also deter criminals from attempting crimes The subcommittee's letter enclosed a press against banks. There is some question as to the release that mentioned several specific matters effectiveness of this assistance as a deterrent. regarding bank protection recently raised by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 847 Chairman Reuss of the Committee on Banking, schedule for inspection, testing, and servicing Currency, and Housing. I would like to com- of all security devices installed in each banking ment on these matters: office; provide for designating the officer or other employee who shall be responsible for 1. The Justice Department has proposed seeing that such devices are inspected, tested, changes in the regulations that would require serviced, and kept in good working order, and more extensive training of bank employees for require such officer or other employee to keep coping with robberies. a record of such inspections, testings and serv- The present regulation requires that a bank's icings." security program provide for employee training We feel the present regulation with proper and periodic refresher courses. This training is enforcement is sufficient to assure that security to cover the proper use of security devices and equipment is properly maintained. We have employee conduct during a robbery. We require found that surveillance cameras and security that a written security program for each banking devices are complicated and their failure to office setting forth procedures for carrying out operate does not always evidence poor maintethis provision be submitted to the appropriate nance. With such equipment, some failures are Federal Reserve Bank. to be expected and we are of the opinion that In a recent letter to all State member banks more rigid standards would not correct this describing the most common deficiencies found problem. As in the case of training programs, in security programs, we emphasized the value we feel the examiners' evaluation of mainteof periodic and comprehensive training pro- nance programs and records is sufficient to degrams for bank employees. Examiners are aware tect poor maintenance practices. of the value of employee training and take this 4. The Justice Department has proposed to into consideration in their evaluation of security change the regulations to require better records programs and procedures. We do not feel that be kept of "bait money99 used to trace robbers this section of the regulation need be changed. after a crime. 2. The Justice Department's proposed We have not found a need for such a change changes would require cameras in all offices of in the regulation. The FBI makes a practice of banks with $25 million or more in deposits, or notifying the appropriate Federal supervisory for all offices that have been robbed more than agency when a security deficiency is found in twice in 1 year. the investigation of robberies. There were 661 As I have indicated earlier, it has been the offenses against offices of State member banks practice of our examiners to encourage the investigated by the FBI during fiscal year 1975. management of banks with offices without cam- Our records reveal no instance where failure to eras in low crime areas to install equipment if maintain bait money was reported during this such offices have been victims of a robbery. If period. The FBI did report, however, that nine the regulation were amended to include a de- banking offices had failed to list all the identifyposit size cutoff, many small banks and savings ing information when recording bait money. We and loan associations that should have or now have taken steps to reduce even this small error do have cameras would no longer be required rate and feel that stronger regulations would not to have them. Our records indicate that many be of material benefit. of our banks that have been robbed have depos- 5. The question is raised in the press release its of less than $25 million. as to whether the regulatory agencies are the 3. The Justice Department's proposed best qualified authority to enforce the Act, and changes would require more rigid standards for it is suggested that "inspections should be made maintenance of equipment. by agencies experienced in crime protection The present regulation specifies that the secu- rather than bank examiners, who are primarily rity program shall "provide for establishing a auditors.99 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 Federal Reserve Bulletin • December 1975 » Bank security is a highly specialized field, imposition of an additional layer of supervision and we are of the opinion that neither law on financial institutions and believe that continenforcement nor any other related disciplines uation of the responsibility in the hands of the necessarily qualify individuals to judge the four Federal supervisory agencies would be as quality of devices, the adequacy of their instal- effective, and clearly less expensive, than lation and maintenance, and the appropriateness creating another agency to implement the Bank or sufficiency of protection procedures in finan- Protection Act. cial institutions. There are over 65,000 offices There have been numerous studies of crime of financial institutions and credit unions in the in general and several studies of certain types United States. For any other agency to review of crime. But we know of no specific studies periodically and resolve the problems in so of crimes against financial institutions. Such a many locations would require a very substantial study should contribute to a better understanding staff having specialized skills and training. We of the problem and increase the likelihood of know of no existing Federal agency—other than more effective counter measures. the agencies mentioned—that currently has a Mr. Chairman, that concludes my statement. staff of sufficient size and skills to assume this If there are questions, we will try to be as function. We have serious reservations about the helpful as possible. • Statement by Henry C. Wallich, Member, but by no means least, the Federal Govern- Board of Governors of the Federal Reserve ment—an adequate supply of capital is impor- System, before the Joint Economic Committee tant. and the Select Committee on Small Business, Historically, the total volume of gross savings U.S. Senate, November 21, 1975. and investment in the American economy has averaged about 15 per cent of gross national I am happy to have this opportunity to appear product, to which one might add perhaps anbefore the Joint Economic Committee and the other 2 per cent to allow for public construction. Senate Select Committee on Small Business to This rate, of course, is modest compared to the present my personal views on some financial savings of many European countries, which issues of concern to small businesses. In ac- range around 25 per cent of GNP, and even cordance with indications received from the those of some developing countries, which committee, I intend to address myself to prob- surpass 20 per cent in quite a few instances, lems concerning the over-all supply of and de- to say nothing of Japan, which at times has mand for capital. saved and invested as much as 40 per cent of For small business, this over-all supply and its GNP. But our comparatively modest rate of demand situation is of course of great impor- saving and investment is deeply embedded in tance. In my opinion, based on the evidence, the structure of our economy. Major changes the United States faces the danger of a possibly do not seem to be in prospect. What we have serious capital shortage. Over 9 million small to be concerned about are small but nevertheless business firms, according to data supplied by critical increases and decreases in particular the Small Business Administration, must com- sectors of the economy. pete with other sectors for the available supply First I would like to review briefly the factors of capital. For all users of capital—small busi- influencing the demand for capital. Most of the nesses, homeowners, other consumers, large new investment needs that add to our regular businesses, State and local authorities, and last, capital requirements and thus may call for an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 849 increase in total saving are familiar, although savings, business savings, and government savnot easy to quantify. The most important of ings, which could be positive or negative. The them relate to energy and to the restructuring aggregate of these savings, of course, is equal of parts of our economy to reflect higher energy to aggregate investment. costs. Some of these additional investment out- Personal savings in recent years have lays—for environmental improvements, health amounted to about one-third of total savings. and safety on jobs, and mass transit—are re- They have varied with the business cycle, but quired by political decisions that we, as a Na- have otherwise been fairly stable at about 5 per tion, have made. Some declines in sectoral cent of GNP. At the present time, personal investment requirements also seem ahead— savings have tended to rise above these longespecially in the areas of housing, urban con- term savings rates, probably reflecting concern struction such as schools and hospitals, and of savers about the stability of their jobs, inflainventory investment. These, for the most part, tion-induced uncertainty about future living reflect demographic and economic influences. standards, and an effort to make up for the loss On balance, I believe that the required increases in the purchasing power of past savings. As in investment will outweigh the cutbacks by a inflation abates and the economy recovers, permargin on the order of 1 per cent of GNP. sonal savings, if precedent is a guide, are likely It has been argued that the high existing to move back to their long-term rate. excess capacity in industry will allow us to Corporate savings have trended downward in invest less in plant and equipment over the next recent years if we correct for the overstatement few years than we have on average in the past. of profits resulting from the inclusion of inven- This, some observers have said, means a cut- tory gains, which contribute no investable back in our total investment requirements. I funds. In 1974 this overstatement amounted to regard this view as unfounded. A capacity utili- $35.1 billion. zation rate in manufacturing of 69 per cent, as For the small business sector, these macroexperienced recently, does not mean that almost economic profit data find a concrete counterpart one-third of our effective capacity stands idle. in the behavior of after-tax earnings per dollar In 1973 and 1974 severe and widespread short- of sales in manufacturing. For firms with assets ages were experienced while that index stood of less than $1 million, profits per dollar of sales only a little above 80 per cent. Moreover, the have moved approximately in the very modest changing price of energy is bound to have made range of 1.5-3.5 cents. The high second figure some of our capacity obsolete, while changing reflects in part the difficulty that many small consumption habits, technological advances, businesses encounter in protecting themselves and environmental factors probably have ren- against the appearance of spurious inventory dered another part inoperative. profits—and the taxes thereon—by resort to Our labor force has increased dramatically in sophisticated accounting techniques such as recent years, and I very much doubt that we LIFO (last-in, first-out). I might add that small have enough capacity to supply jobs for business profits, besides supplying resources for everyone even if the demand were there. The expansion, perform an important social function peak rate of labor force growth seems to be in diffusing profits among a large number of behind us, but rates of labor force growth of claimants. Thus, making more accessible to 1.6-1.8 per cent per year are still projected small business simplified forms of LIFO and through the early 1980's. Thus, once the effects accelerated depreciation would produce signifiof the recession are overcome, our capital stock, cant benefits in terms of greater small business in view of our growing labor force and the need savings. for more jobs, may well turn out to be too small The conclusion with respect to the outlook rather than too large. for saving is simple: with personal savings Allow me to turn next to the sources of supply likely to return to historical levels, and with of capital. There are essentially three: personal business saving, realistically stated, at a lower Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 Federal Reserve Bulletin • December 1975 » level, the key to an adequate flow of savings categories. One group arrives at fairly high is in the hands of government, in particular the estimates of the capital needs of the private Federal Government. Historically the Federal sector for much the same reason that I have Government has shifted back and forth between given in this testimony. Most of these authors, surplus and deficit, with deficits preponderating however, tend to assume that the Government by far in recent years. Thus the Federal Gov- will produce a surplus and thus cover the capital ernment has occasionally been a saver and sup- deficit of the private sector. A second group, plier of capital to the economy, while more more realistically in my view, projects a Federal often it has been a net borrower, drawing capital deficit. At the same time, however, this group from the private sector. In recessions, of course, tends to envisage a lower rate of investment in the latter stance often has represented an appro- the private sector, which would make room for priate fiscal policy. The danger that a Federal the Government deficit. If the second group is deficit might compete for savings with the pri- right with respect to their expectation of a Fedvate sector and "crowd out" some would-be eral deficit, a high rate of investment in the borrowers rises, as the limits of the private private sector clearly would produce a capital sector's ability to generate savings are being shortage. approached. A significant capital shortage clearly would The full-employment surplus is one measure be adverse to small business, as it would be of the stance of the Federal budget, useful if for all sectors. This prospect, as I have noted, correctly interpreted. It tells us what the surplus, hinges essentially on the outlook for the Federal that is, the savings, of the Federal Government budget. In addition, however, there are probwould be at a benchmark level of economic lems of a financial order that need to be overactivity. At the present time, a plausible esti- come if small as well as large businesses are mate of this hypothetical magnitude reveals that to have adequate access to the flow of financing. the full-employment surplus is in fact a deficit Today many businesses find it harder to fiof $10 billion. This estimate, which suggests nance because their liquidity has been drained. that the Federal Government would be compet- They have seen their capital structure deterioing severely for capital with the private sector rate, with debt rising relative to equity, and if we now were at full employment, does not, short-term debt, at least until very recently, of course, tell us what would happen hereafter rising relative to long-term debt. A variety of once the economy recovers from recession. If measures have been suggested that would imexpenditures are held down and taxes are not prove both conditions by raising cash flows and reduced further, the budget would move into enabling enterprises, large and small, to imsubstantial full-employment surplus. But if ex- prove their capital structure. Familiar proposals penditures increase at the pace of recent years of this sort involve an enlarged investment tax while revenues rise only in response to rising credit, depreciation facilities more realistically economic activity, the prospect in my opinion recognizing inflation, tax deductibility of diviis for a full-employment deficit even at high dends, an outright cut in the corporate tax rate levels of economic activity. and, at the individual taxpayer level, adjustment It may be useful to the committee to note of capital gains taxes for inflation, reduction in very briefly the results of a number of quantita- the capital gains rate for longer holding periods, tive studies made by various experts concerning and integration of personal and corporate inthe outlook for the balance of demand and come taxes. All these techniques have advansupply of capital. My reading of these studies tages. However, they mostly share the disadis that a real concern is in order over the vantage of reducing the Treasury's revenue and prospect of a capital shortage, although most of shifting the distribution of income in the of the authors would not agree with me and are direction of greater inequality, or at least of in no way responsible for my conclusions. partly reversing a move toward greater equality Most of these studies essentially fall into two that may have occurred. A loss of Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 851 revenue, besides, means more Treasury bor- of dividends would be taxed at the reduced rate. rowing and to that extent does not help resolve Alternatively, it could be done by applying the the capital shortage. tax change to debt and equity issued after en- If it is our objective to avoid a loss of revenue actment. and a shift in the income distribution, it would The first method—phasing in gradually— still be possible to improve the capital structure exerts only limited pressure toward more equity of corporations and to facilitate financing. This financing in the early years and for that reason could be done by removing or reducing the bias seems less desirable, even though it has adminin favor of debt as against equity that is a istrative advantages. The second method— familiar feature of the corporate tax system. In application to new debt and equity only—would order to accomplish this, I would suggest a immediately end the existing bias in favor of sharp reduction in profit tax rates, while at the debt financing. It poses administrative difficulsame time including interest in the tax base. The ties because in effect there would be two tax same revenue could then be raised, as with the rates, one on old debt and equity and another present higher rates under which interest re- on new. Regulations would have to be written mains tax exempt. This would diminish the with a view toward closing the obvious looppresent bias of the tax system in favor of debt holes that such a situation presents. financing. It would favor equity financing at no It should be stressed once more that the cost to the Government, would improve capital foregoing tax changes would do no more than structures of business, and would permit easier improve the structure of business capitalizafinancing. tion and thereby ease corporate financing. They Implementation of such a tax on net operating would not, by and of themselves, increase the income (interest plus profits before taxes) supply of saving. The number of devices that would, of course, require a phasing-in process, have been suggested to increase saving is large, to avoid the severe impact on enterprises with and most of them have been so thoroughly above-average debt that would result from sud- discussed that there is no need here to pass them den nondeductibility of interest, even at a mod- in review. Most of them share the defect of erate rate. This could be done by phasing in making the distribution of income more unthe change over a number of years so that a equal. It seems desirable to emphasize tax and growing fraction of interest paid would become other reforms that would facilitate financing nondeductible over time and a growing fraction without such consequences. • sons underlying the Board's positions on the Statement by Robert C. Holland, Member, provisions of this bill and on certain alternative Board of Governors of the Federal Reserve proposals. Thereafter, I shall be glad to try to System, before the Committee on Banking, answer any questions you may have. Housing, and Urban Affairs, U.S. Senate, De- When you introduced S. 2298, Mr. Chaircember 8, 1975. man, you referred to the speech Chairman Burns made to the American Bankers Association in I am pleased to appear before this committee October 1974 concerning the banking system. on behalf of the Board of Governors of the During the past year the Federal Reserve has Federal Reserve System to discuss S. 2298, and made detailed studies of the problems highthe broad range of important bank regulatory, lighted in that speech and what might be done supervisory, and monetary policy consid- to help correct them. As a part of those efforts, erations, which are affected by this proposal. we have given careful thought to the structure In the interest of both clarity and brevity, my of bank supervision and regulation in the Fedprepared statement is addressed to the key rea- eral bank regulatory agencies. Our views have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 Federal Reserve Bulletin • December 1975 » been evolving during the course of these studies, few years in loan commitments—that is, in bank and they are continuing to develop. promises to lend money upon request, made One of the Board's major conclusions from chiefly to businesses—both slowed and skewed this detailed review is that some reform of the the restraining effects of monetary policy, and bank regulatory structure is desirable, but that thereby helped worsen our inflation. Those adconsolidation of all bank supervisory and regu- verse effects could have been considerably latory authority in a separate agency as proposed worse, were it not for the fact that the Federal in S. 2298 would be unwise. (We also have Reserve, drawing upon its supervisory as well comments on several details of S. 2298, which as monetary responsibilities, took the initiative are presented in Appendix A.1) in expressing concern to bankers regarding the A number of considerations have led the large build-ups in their commitments. With the Board to this major conclusion. First and fore- benefit of hindsight, however, I wish that our most, this bill mandates a decisive separation countermeasures could have been even more between the Federal Reserve, the Nation's cen- vigorous. tral bank, and banking regulation and supervi- Bank capital standards set by supervisors also sion. That, we are convinced, would be a interact with both national economic and moneserious mistake. Now, more than ever, the Fed- tary policy. Supervisory rules that require banks eral Reserve's role as monetary policy-maker to raise their capital ratios or that make it more and as lender of last resort interacts with the difficult for banks to raise capital can reduce effects of prevailing bank supervisory and regu- the availability of bank funds to prospective latory policies. Each of these areas of public borrowers and thus slow the rate of growth of policy increasingly influences the effectiveness bank credit and money. These are matters of of the other. To divorce them is to weaken both. significance to monetary policy. For example, Because of the importance we attach to this right now, in the wake of several years of strong particular issue, let me give you some concrete bank credit expansion and some recent loan examples of our concern. Fundamentally, mon- reverses, a strengthening of capital positions of etary policy works by affecting the liquidity many banks is most desirable. But supervisory position of banks and the financial system. Good pressure for improving capital ratios should not bank supervision should, and will, examine the be overdone in this environment as it could deter liquidity of individual banks and urge the cor- bank willingness to lend to the extent of interrection of inappropriately thin or exposed li- fering with the financing of recovery. Nor, for quidity positions. But if bank supervisory policy the same reason, should supervisory pressure be is set without full understanding of broad eco- such as to inhibit the ability and willingness of nomic developments or the trend of monetary banks to go to the market to raise needed capital. policy, the supervisor can be impelling ill-timed There are two other important aspects of the banking actions. The enforced write-downs of interaction between supervisory and monetary bank assets to the unrealistically depressed considerations that should be accented. market values reached during the Great Depres- Bank supervisory activities provide a flow of sion were among the most unfortunate examples information concerning detailed developments of such too-narrow supervisory vision. inside the banking system that can be of inesti- On the other hand, if the bank supervisor sets mable value to monetary policy-makers. Extoo-low liquidity standards, or none at all, or aminer asset evaluations supply first-hand changes them at an inopportune moment, he can knowledge of the changing quality of credit and dilute or frustrate for a time the thrust of mone- of the quality of bank management that is adtary policy. For example, the bulge of the past ministering that credit. Important insights are gained also into bank policies regarding liability Available upon request from Publications Services, management and participation in various types Division of Administrative Services, Board of Goverof credit markets. This kind of information nors of the Federal Reserve System, Washington, D.C. 20551. provides valuable supplements to the meaning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 853 of the quantitative statistics on monetary and the development of an unhealthy relation becredit aggregates. tween the supervised and the supervisors. I When one turns to the regulation and super- believe Federal Government agencies generally vision of international banking activities, more make a sincere effort to avoid becoming captives monetary implications ensue. Changes in bank of the industries they regulate. However, the rules or examiner standards can generate flows necessary closeness of the relationship creates of funds into or out of this country that markedly opportunities for undue influence that must be alter the international balance of payments and guarded against. the foreign exchange value of the dollar. Simi- As we have weighed these risks against the larly, such changes can create financial prob- improvements upon recent performance that lems for other countries and adversely affect the could realistically be expected to flow from relations between our country and others. complete centralization of Federal bank regula- In all these supervisory and regulatory mat- tory authority, we have concluded that the gains ters, the standards of objective examiner pro- are not worth the risks, at least at the present fessionalism need to be respected, but such stage of experience. Likewise, we have constandards need to take account of their broader cluded that there are not such critical shortdomestic and international consequences. To comings in our present bank regulatory system our mind, this reasoning argues decisively for as to call for the kind of drastic overhaul proa close relation between monetary policy and posed in S. 2298. Too often, we believe, advosupervisory and regulatory considerations. cates of this kind of radical change are compar- The Board's deliberations have led to the ing the real with an untested ideal. Any existing conclusion that an optimum system of bank arrangement will show up with some blemishes regulation and supervision is one that would in such a comparison. achieve three main objectives: (1) to keep banks Our analysis of the banking problems that safe and sound, (2) to protect the legitimate have surfaced in recent years indicates that interests of present and would-be bank custom- many of them would probably have occurred ers, and (3) to be attentive to over-all monetary regardless of what structure of Federal superviconsiderations. sory agencies was in place, and that most of It might seem logical to pursue these various them can be dealt with without a drastic reobjectives by consolidating all the public agen- structuring of the banking agencies. cies concerned with them under one roof. That In the light of recent experience, many necwould amount to centralizing all banking and essary or desirable corrective measures have monetary powers in one agency. already been introduced by both banks and bank However, experience with regulation in in- supervisors. Banks in general have been sobered dustries other than banking suggests that placing by the problems they have faced and are taking all regulatory authority in a single agency does a more prudent posture both in pursuing new not necessarily result in sound regulatory policy. activities and in monitoring possible excesses. Too much centralization entails substantial The agencies, on their part, have launched a risks. To the extent that the possibilities of number of important remedial measures to imcriticism and constructive differences of view prove bank examination, supervision, and regufrom within the regulatory structure are elimi- lation. Without taking the time to identify all nated, the benefits of knowledgeable checks and the improvements that have been undertaken, balances are diminished. The stimuli to initia- I will simply attach as Appendix B to this tive and innovation are reduced. A sole bank testimony a list of some of the significant supervisory agency, not subject to challenge changes and proposals that the Federal Reserve from sister agencies, could tend to become itself has made.2 inflexible, or even ossified. Surveying all these and similar changes, we In addition, any supervisory agency design believe they promise a substantial and responsineeds to take careful account of the danger of 2 See footnote 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 Federal Reserve Bulletin • December 1975 » ble improvement in the banking environment. the Board authorizes Edge Act corporations, but But I am not here to try to lull this committee many of the banks with which those corporainto inaction with a claim that "Everything is tions are associated are supervised by the fine." On the contrary, we believe there are Comptroller. certain problem areas where current progress is The examination and supervision of national not good enough, or fast enough, or uniform and State member banks could be integrated enough to be satisfactory. Accordingly, the efficiently. At the same time, the continued Board believes that some change in the Federal existence of the Federal Deposit Insurance Corbank supervisory structure, designed to improve poration would provide another Federal banking performance in those particular areas, would be agency to check or stimulate the supervisory and worthwhile. To be specific, the objectives that regulatory actions of the Federal Reserve. we have in mind are: (1) to more efficiently If the Congress should make such a change and uniformly modernize bank examination and in bank regulatory structure, it would then seem surveillance procedures, (2) to provide for more appropriate to have the incumbent of the Office vigorous and consistent follow-up procedures of the Comptroller of the Currency added as when bank examinations reveal weaknesses, (3) an eighth member of the Board of Governors to attain greater consistency in some regula- until the next Board vacancy occurred, at which tions, and (4) to improve the coordination of time he would be appointed to fill that vacancy. bank supervision with monetary policy. The second reform proposal, which has de- What agency changes would do most to foster veloped strong support within the Board, is the these objectives while avoiding the pitfalls cited creation of a Federal Bank Examination Counearlier in this testimony? The answer to that cil. Such a Council would be focused on the question is, in the end, a matter of personal areas that we believe are most in need of imjudgment. On balance, no one proposal for provement—that is, efficient and uniform modagency reform has gained the support of a strong ernization of bank examination and vigorous majority of the Board at this time. Two different and consistent follow-up procedures when bank reform proposals, however, have developed weaknesses are revealed. Such a Council could strong support within the Board. be established administratively, or by statute. The first, and perhaps the simplest, is to Its statutory authorization would undoubtedly consolidate the functions of the Office of the give more impetus to the establishment of such Comptroller of the Currency within the Federal a Council and would also provide it with more Reserve System. This change would accomplish clear-cut authority to take definitive action a good deal of what is claimed would be ac- within its statutorily defined areas of adminiscomplished by a complete consolidation of tration. Federal bank supervisory functions without The Federal Bank Examination Council some of the dangers of complete unification. should have authority to establish standards and There is logic in this proposal because all procedures for bank surveillance and for examinational banks are required to be members of nation and follow-up, which are applicable to the Federal Reserve System and thus subject to all the Federal banking agencies, and it should its regulations, but their primary examination review significant problem cases when and as and supervision lies with the Comptroller; the they develop. All three Federal banking agen- Board has supervisory responsibility for all bank cies should be represented on the Council. Beholding companies, and yet many of the major cause of the importance of close coordination bank subsidiaries of such holding companies are between bank supervision and monetary policy, national banks; the Board must approve the we would favor appointing a member of the opening of foreign branches of national banks Board as our Council representative and making consistent with its international monetary re- him Chairman of the Council. sponsibilities, but the supervision and regulation Establishment of a Federal Bank Examination of those branches rests with the Comptroller; Council of this kind would be consistent with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 855 an experimental and evolutionary course. Expe- such as were noted by Chairman Burns in his rience with the Council would conceivably lead October 1974 address. They would, at the same in time to the conclusion that some further time, continue a system of checks and balances consolidation of banking regulatory and related that as Chairman Burns also observed, "is the authorities would be desirable. If so, that deci- traditional way of guarding against arbitrary or sion would be based upon actual experience and capricious exercise of authority." a greater practical awareness of the difficulties The Board recognizes that reasonable men to be overcome than we now have. This step- differ on the scope and desirability of revisions, by-step approach to reform in bank regulatory if any, in bank regulatory structure. As I have structure could, we believe, bring about signifi- tried to indicate, we are not wedded to the status cant improvements in bank supervision. quo. We look forward to continued work with The adoption of either of the two reform your committee in developing the most workproposals that I have sketched should help to able and desirable revisions in bank regulation reduce instances of "competition in laxity," and supervision. • Statement by Jeffrey M. Bucher, Member, ferences in interpretation as to whether or not Board of Governors of the Federal Reserve the Act prohibits commercial bank involvement. System before the Subcommittee on Securities Most of the activities in which the subcommittee of the Committee on Banking, Housing, and has indicated a special interest have come into Urban Affairs, U.S. Senate, December 9, 1975. question, for one reason or another, with regard to the applicability of Federal banking or se- I am pleased to present the views of the Board curities laws. of Governors of the Federal Reserve System on The range of activities under your review various issues raised in connection with the might be categorized conveniently as functions subcommittee's study of the securities activities in which the bank performs in the capacity as of commercial banks. The study outline agent, as investment adviser, or as underwriter. prepared by the subcommittee indicates a desire In the agent capacity, the new services being to re-examine the provisions of Federal banking investigated are dividend reinvestment plans and and securities laws as they may apply to bank automatic stock-purchase plans. In the investinvolvement in securities activities, especially ment advisory function, relatively new service new activities, which, in recent years, banks areas are certain investment management servhave demonstrated increased interest in pursu- ices for individuals and the provision of adviing. sory services to real estate investment trusts and Bank participation directly in certain securi- closed-end investment companies. With regard ties activities has been limited since enactment to underwriting, the subcommittee is focusing of the Glass-Steagall Act in 1933. A key pur- on the issue of bank underwriting of municipal pose of that Act was to separate commercial revenue bonds, which is not permitted by the banking from certain investment banking and Glass-Steagall Act. securities distribution activities, which in com- The interest of commercial banks in offering bination had resulted in numerous abuses and new types of financial services to the public has had exposed the banking system to considerable been generated by their perception of a potential risk. Thus, commercial banks are expressly market for these services and the potential profprohibited from underwriting and dealing in its that may be earned, along with competitive corporate securities. In various other securities pressures from other financial institutions, such activities, however, there often have been dif- as insurance companies. All of the services Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 Federal Reserve Bulletin • December 1975 » singled out by the subcommittee are substan- cussion, or extending the range of activities in tially related to activities that banks have en- the case of commingled managing agency acgaged in prior to and since enactment of the counts and underwriting of municipal revenue Glass-Steagall Act. The relatively new agency bonds, needs to take carefully into account the services, for example, are specialized "prod- likely public benefits and risks of the activities. ucts" developed from the usual agency func- As a general matter, the Board believes that, tions performed by banks. New investment within limits, commercial banks in securitiesmanagement services derive from traditional related activities can play a constructive role in trust department activities, while underwriting serving the public, strengthening competitive of municipal revenue bonds would be an exten- forces, helping to enhance individual particision of bank participation in the underwriting pation in capital markets, and ensuring effiof general obligation issues. ciency in the allocation of investible funds. At It is still too early to determine whether or the same time the need for adequate safeguards not banks have accurately judged the market for for the public and the banks must be given several new services. In numerous areas the appropriate attention. Each securities-related present situation appears quite fluid, and the activity will tend to raise issues of its own, but future evolution of the market is not at all clear. an overview of the nature of the benefits and The extent of bank involvement in several of risks of the services will help provide a the new product areas is quite small, with perspective of the Board's position on bank around 30 banks offering automatic investment involvement in new service areas. plans, for example. And these plans apparently A principal benefit to the public from banks' have a considerably smaller number of custom- offering securities-related services is the coners than had been anticipated by some banks. venience to the public at reasonable cost. In a On the other hand, dividend reinvestment plans number of cases banks have offered services not now cover about 450 corporations although readily available elsewhere. The automatic incomprehensive information on shareholder par- vestment plans, for example, provide small inticipation is not available. vestors with an opportunity to participate regu- The likely future extent of bank participation larly in particular equity issues of their own in offering new agency and investment advisory choice. The brokerage industry generally has services depends upon a variety of factors. not aggressively sought to provide extensive Among these is the regulatory climate, of services to small investors, primarily because course. But, in addition, factors influencing of the high cost and low return. Through the bank participation are the demand for the serv- automation of many aspects of servicing acices and the ultimate profitability for banks. counts and the ability to achieve economies in Demands for the services offered by banks are transactions costs by pooling small orders, related to the financial market environment—for banks are largely filling a need not previously example, the poor price performance of equity met by other market participants. Dividend markets in general over the past few years has reinvestment plans also are geared to providing discouraged investor participation—and impor- a convenient service to small investors. In the tantly to the competitive environment among case of individual portfolio management servbanks and nonbank institutions offering similar ices, the willingness of some banks to take on services. Thus, in some lines of activity the clients with relatively small portfolios is perhaps markets may broaden and encourage increased the first time such services have been available participation by banks and other firms, while to such investors. other activities are likely to remain compara- Bank participation in new financial service tively small with little interest for commercial areas seems likely to provide greater convenbanks over all. ience and lower cost to the public over time An appraisal of the desirability of continuing as a result of competitive forces. Innovative to permit bank activities of the sort under dis- efforts by a few banks are likely to prompt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 857 increased competition from other banks and Moreover, there are safeguards to insure other financial institutions. The public could against inappropriate bank behavior with regard thus be a beneficiary of the interplay of compet- to potential conflicts of interest. These safeitive forces in the marketplace. guards include the Federal and State bank ex- Efforts by banks to provide new services may amination procedures and the Federal securities also help to generate broader public partici- laws and other laws applicable to the conduct pation in capital markets, particularly equity of those handling financial transactions. With markets. Over recent years individual investors regard to examination procedures, all State have reduced their participation in equity mar- member banks exercising trust powers are exkets, reflecting high transactions costs, poor amined annually by Federal Reserve Bank experformance of the market, and growth of sub- amination personnel. This examination is destitute investment outlets. If we are to meet signed to determine whether the bank's fidueffectively the substantial capital needs of our ciary activities are conducted in accordance with economy, increased participation of individual safe and sound banking practices and, if they investors in equity markets is necessary and are not, to define any contingent liability that desirable. Individuals traditionally have been a may follow from the inappropriate practices and source of liquidity in equity markets, and con- the potential impact on the over-all condition sequently broad-based participation of individ- of the bank. Of particular concern to trust exuals in equity markets will help strengthen the aminers are transactions or relationships that performance of the market. The limited evi- may involve conflicts of interest arising from dence available suggests that banks have been the bank's trust or investment activities. moderately successful in attracting new individ- Another type of risk in new securities-related uals into the market. Surveys by three banks activities is the potential exposure of bank capishowed that roughly between 40 and 60 per cent tal and the possible impact on bank soundness of the participants in automatic investment plans in the event of adverse experiences. Because were first-time stock market investors. most of the activities are not capital intensive, Benefits to the banks will accrue in the form bank capital is not put at risk directly. In the of additional profits, assuming their services on case of municipal revenue bond underwriting the whole prove successful. In a number of and dealing, however, bank capital would be agency and investment advisory activities, ad- risked when positions are taken in the normal ditional services may provide opportunities for course of business. Setbacks suffered by banks more efficient use of existing data processing in some of these new activities, as well as in and bank customer service capabilities. Hence, their longstanding functions, could conceivably the activities are a natural extension of services have spillover effects on the bank as a whole. that should provide economies of scale. Depositors, for example, might lose confidence The public risks of bank participation in se- in the bank and withdraw funds, threatening the curities-related activities would seem to relate viability of the institution. While such an event principally to the potential for conflicts of inter- is not likely except in rare cases, the possibility est. These potential conflicts are not new be- needs to be considered in the framing of public cause they already exist in the traditional policy. agency, trust, and underwriting activities of A different type of potential risk that often banks. Areas of possible conflict arise, for ex- receives attention is the long-run effect of inample, with regard to the use of inside informa- creased competition on the concentration of tion, inappropriate timing of buy and sell orders, resources. Some observers have suggested that and attempts to influence the value of corporate bank entrance into various activities will only shares for the banks' own benefit. In our judg- supplant those of existing market institutions ment, even though the potential for abuse exists, and ultimately lead to increased concentration banks on the whole have performed in a prudent of resources as well as reduced competition. It manner. is by no means clear that the activities under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 Federal Reserve Bulletin • December 1975 » review pose such a threat or that a potential shares of stock in companies selected by the threat would in fact be realized. But in a broader customer from a list compiled by the bank. The perspective, we must, nonetheless, remain alert stocks appearing on the list, under current practo the dangers of moving to a position where tice, generally are those of the 25 to 40 largest banks or other institutions command over- corporations traded on the New York Stock whelming control of capital markets and the Exchange. economy. The Board believes that both dividend rein- In reviewing the securities-related activities vestment services and automatic investment of commercial banks that are considered in the services are appropriate activities for commerstudy outline, the Board has taken into account cial banks. For both services there appear to the potential benefits and risks I have enu- be minimal potential risks to the banks and the merated. It might be useful at this point to public, while there are appreciable potential review briefly each of these activities and to benefits to the public. Hence, the Board believes indicate the Board's current thinking on the that banks should be authorized to continue desirability or need to amend the Glass-Steagall offering these services. Act. A second broad category of bank activity in First, with regard to agency-type activities, securities markets results from commercial the Glass-Steagall Act expressly permits na- banks offering investment advisory services. tional banks to purchase and to sell securities Commercial banks have long acted in an inwithout recourse upon the order and for the vestment advisory capacity in connection with account of customers. Banks acting as agents the fiduciary and custodial activities of their trust perform an intermediary role between their own departments. In this function banks have hancustomers and broker-dealers who execute dled the assets of individual as well as institutransactions. One of the traditional bank serv- tional customers. Much of the institutional services in this area is the offering of custodial ice is accounted for by the management of accounts. In such an account customers may assets in private pension or profit-sharing plans. deposit cash or securities and the bank—at the In recent years the investment advisory activities direction of the customer or his financial advi- of banks have been expanded within existing sor—will buy or sell securities, collect divi- trust departments as well as by establishing dends and interest, disburse proceeds of the investment advisory affiliates of bank holding account, and provide for the safekeeping of companies. securities. Another traditional bank agency Investment management services for individservice involves the transfer of shares and dis- uals until recent years generally had been ofbursements of dividends on behalf of corporate fered to those with portfolios of $100,000 or security issuers. larger. However, some banks are now offering The newer types of bank agency activities in portfolio management services, on a discretiongeneral appear to be outgrowths of these tradi- ary or nondiscretionary basis, to customers with tional agency activities of bank trust depart- portfolio values of considerably smaller ments. The dividend reinvestment plan, for ex- amounts. These services are also provided by ample, provides a means for shareholders of a a number of banks for self-employed individuals participating corporation to direct their divi- under Keogh plans and could well emerge for dends to a bank that purchases additional shares Individual Retirement Accounts, given recently of stock for the customer. Shareholders using enacted legislation. The Board believes that the such plans may also channel additional cash to potential benefits of these services outweigh the bank for the purchase of shares. In the presently forseeable risks. automatic investment plan, a bank checking The efforts of banks to provide certain types account customer may elect to have a specified of investment management services to small amount of funds deducted monthly or semi- investors have been constrained, however, by monthly from his account and used to purchase the Supreme Court decision in 1971 which pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 859 vided that commingled managing agency ac- gress to authorize bank underwriting and dealing counts were in violation of the Glass-Steagall in revenue bonds. During this period numerous Act. As a result, banks are not permitted to pro and con arguments have emerged. The pro achieve the economies of pooling for nontrust arguments generally focus on the benefits to or agency accounts, and this acts to limit indi- governmental units in the form of lower interest rectly the extent of the potential market for bank costs and improved market efficiency, while the management services available to small inves- con arguments center on potential conflicts of tors. The question of amending Glass-Steagall interest and risks of market concentration. The to permit commingled managing agency ac- Board, on a number of occasions, has reviewed counts is one that the Board has not yet explored the question of extending bank underwriting with sufficient thoroughness to arrive at a judg- privileges to municipal revenue bonds of inment. vestment-grade quality and since 1967 has con- Other types of investment advisory services sistently voiced its belief that the public benefits being examined are those where banks or affili- of such action outweigh any potential risks. In ates of bank holding companies have acted as view of recent developments in the municipal advisors to real estate investment trusts and securities markets, however, the Board would closed-end investment companies. These are wish to take a fresh look at the situation before areas where the Board believes legislation is reaffirming its position on this matter. unnecessary at the present time. It should be In conclusion, the Board believes that appronoted, however, that the Board regulation in the priate public policy in regard to the securitiesinvestment company area is presently being related activities of commercial banks requires challenged in the courts. a careful and considered weighing of the poten- The third general area covered by the sub- tial risks and benefits. The experience of recent committee's study outline deals with bank un- years suggests the need for prudence in the derwriting and dealing in municipal revenue expansion of bank activities and an awareness bonds. Bank underwriting and dealing in Fed- of the potential risk new activities pose to the eral Government obligations and general obli- adequacy of the capital base of banks. Furthergations of State and local governments were more, undue potential conflicts of interest must expressly permitted by the Glass-Steagall Act. be avoided and safeguards to the public must In the early 1930's revenue bond issues were remain adequate. But we should not overlook a relatively unimportant source of funds to gov- the benefits to be derived from bank particiernmental units, but as their capital needs have pation in certain securities-related activites. The increased revenue issues have been employed erection of barriers to restrict bank competition to an appreciable extent. in new activities would limit benefits to inves- Over the past two decades or so there have tors and serve to hamper the efficient performbeen a number of bills introduced in the Con- ance of the Nation's financial markets. • Statement by George W. Mitchell, Vice Chair- your committee's study of Financial Institutions man, Board of Governors of the Federal Re- in the Nation's Economy (FINE). My assignserve System, before the Subcommittee on Fi- ment today is to discuss two aspects of the U.S. nancial Institutions Supervision, Regulation, banking system—the role of foreign banks in and Insurance of the Committee on Banking, the United States and the activities of U.S. Currency, and Housing, U.S. House of Repre- banks abroad. Including these topics in the sentatives, December 12, 1975. FINE study recognizes that any current comprehensive review of this Nation's banking sys- I am pleased to appear on behalf of the Board tem must take into account the fact that banking of Governors to participate in the hearings on has increasingly become a multinational busi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 Federal Reserve Bulletin • December 1975 » ness. This has been reflected both in the growing and the regulatory policy questions that are internationalization of the business of the largest raised by their activities in this country. As American banks and in the increasing numbers members of this committee know, consideration and expanding operations of foreign banks in of this subject within the Federal Reserve Systhe United States. tem has led the Board to conclude that legisla- We in the Federal Reserve have been cogni- tion is desirable to provide for Federal regulazant for some time of the internationalization tion of foreign bank operations in this country. of banking and have actively sought to keep The Board of Governors has developed its own abreast of developments in this rapidly changing set of legislative proposals, which were introarea and of their repercussions for the conduct duced in the House of Representatives at the of monetary policy, external financial policy, Board's request as H.R. 5617 under the title and the structure and soundness of the banking of the "Foreign Bank Act of 1975." system. To carry forward work that had been There are three basic reasons that have led begun earlier, the Board formally established in the Board to conclude that it is appropriate at February 1973 a System Steering Committee on this time to move toward a system of Federal International Banking Regulation composed of regulation of foreign bank operations in the some members of the Board and some Pres- United States. First, and most tangible, is the idents of the Federal Reserve Banks. That com- rapid rate of growth that foreign bank operations mittee, of which I have been the chairman, was in this country have undergone over recent years given a twofold assignment—first, to explore and their increasing importance to the functionthe regulatory policy issues associated with the ing of domestic money and credit markets as influx and rapidly expanding activities of foreign well as to international flows of funds. Second, banks in the United States; and second, to the present patchwork system of State and Fedreview the regulatory policies of the Federal eral regulation has resulted in illogical dif- Reserve affecting the operations of American ferences in the regulatory treatment of domestic banks abroad in light of the changing interna- and foreign banks. While difficult to quantify, tional banking scene—precisely the topics certain competitive advantages and disadvanscheduled for today's discussion. tages for foreign banks vis-a-vis domestic banks These two topics are very broad ones, how- have occurred as a result of these differences. ever, and to explore them fully with all of their And finally, international banking operations are ramifications would go well beyond the time best conducted in a reasonably certain regulaallotted to me this morning. It has seemed to tory environment that fosters long-range planus that we could be most helpful at this stage ning and development. Federal legislation of your committee's work by sharing with you standardizing the national status of foreign the general results and conclusions that we have banks not only would make for a stable regulareached in the work undertaken within the Fed- tory environment in the United States but also eral Reserve on international banking questions. would facilitate cooperation between interna- This statement has been so structured. Thus it tional banking authorities and promote the is not confined to the specific points in Titles eventual development of basic standards of VI and VII of the Discussion Principles that banking soundness and stability applied on a were issued by your committee as a means of worldwide basis. stimulating discussion and thinking. Nevertheless those points will be touched upon in the GROWTH OF course of this testimony. FOREIGN BANK OPERATIONS IN THE UNITED STATES FOREIGN BANKS The growth of the activities of foreign banks IN THE UNITED STATES in the United States from November 1972, when The first half of my statement is devoted to the the Federal Reserve began its monthly reporting role of foreign banks in the U.S. banking system system for their operations, through September Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 861 1975 has been extremely rapid. During this largely placements with other banks, were over period the number of U.S. banking institutions $12 billion in September 1975, and their money owned by foreign banks increased from 104 to market liabilities, largely short-term borrowings 181, and their total U.S. assets more than dou- from U.S. banks, were only slightly smaller. bled from $24 billion in November 1972 to $56 Money market activities serve as a source of billion in September 1975. Excluding clearing liquidity for these institutions and help them transactions and transactions with parent banks manage the dollar positions of their parent orand affiliates, "standard" banking assets— ganizations. These extensive money market acdefined as loans, money market assets, securi- tivities also closely connect the U.S. activities ties, and miscellaneous assets—of foreign of foreign banks with U.S. money and credit banking institutions in the United States in- markets. creased from $18 billion in November 1972 to Demand deposits and credit balances of $41 billion in September 1975. foreign banking institutions in the United States The data in Tables la, lb, 2a, and 2b in the remain small, reflecting the wholesale nature of Appendix1 show the principal assets and liabili- their business. These liabilities have been ties of the U.S. offices of foreign banks in growing, however: as of November 1972 they November 1972 and September 1975. These amounted to a little under $2 billion; by Sepdata indicate that the most noteworthy aspect tember 1975 they had more than doubled to just of the expansion of U.S. activities of foreign over $4 billion. Time and savings deposits at banks in this period has been the size and the these institutions are larger and have been rapid growth of commercial and industrial growing even more rapidly—from $4 billion to (C&I) loans, which more than doubled in value $11 billion over the same period; as of Sepfrom $11 billion in November 1972 to $23 tember 1975 they were equal to about 5 per cent billion in September 1975. In November 1972 of time and savings deposits at weekly reporting the value of C&I loans of foreign banking banks. organizations was equal to one-eighth the value In addition to their lending and deposit activof the C&I loans held by large banks that report ities, foreign banking institutions have also been weekly to the Federal Reserve; by September active in international transactions, both with 1975 this fraction had risen to about one-fifth. their parent banks and affiliates and with unre- In that month foreign banking institutions' C&I lated foreign institutions. Gross claims on forloans to foreign borrowers represented less than eigners rose from $6 billion in November 1972 one-quarter of their total C&I loans. This ratio to $16 billion in September 1975, and gross is larger than the comparable ratio for domestic liabilities to foreigners rose from $13 billion to banks and reflects the international character of $25 billion over the same period, resulting in the foreign banking institutions' business. an increase in net liabilities to foreigners from Nevertheless, more than three-quarters of the $7 billion to $9 billion. Included in these intertotal value of C&I loans of the U.S. offices of national transactions as of September 1975 were foreign banks represent loans to domestic bor- net advances of $8 billion from related institurowers. Clearly the C&I loans of the foreign tions outside the United States. The extensive banking organizations constitute a significant international transactions of the U.S. offices of share of an important U.S. banking activity. foreign banks can and often do have an impact Aside from their important lending to non- on the over-all international payments position bank borrowers, the foreign banking institutions of the United States. in the United States have been active in U.S. The growth of foreign banking operations in money markets. Their money market assets, the United States has taken place through agencies, branches, and subsidiary banks, the particular organizational form depending on State 1 Available on request from Publications Services, law and on the preference of the parent bank. Division of Administrative Services, Board of Gover- As of September 1975 foreign banks maintained nors of the Federal Reserve System, Washington, D.C. 20551. 80 agencies in the United States, which ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 Federal Reserve Bulletin • December 1975 » counted for nearly one-half of the standard Although second to New York in terms of banking assets of foreign banking institutions total foreign banking activity, the rate of growth in the United States and reflected primarily the of foreign bank activities in California has been activities of Japanese and Canadian banks. somewhat more rapid, with total standard assets Sixty-four branches of foreign banks accounted of foreign banks growing from less than $4 for a little over one-quarter of the standard billion in November 1972 to over $9 billion in banking assets, while 33 subsidiary commercial September 1975. As of September 1975, Calibanks accounted for a little under one-quarter fornia accounted for 23 per cent of total foreign of these assets. bank activity in the United States. New York and California are the most de- The largest foreign bank operations in Calisirable locations for U.S. offices of foreign fornia are the agencies, mainly Japanese agenbanks because of their importance as trade and cies,'which engage heavily in net borrowings financial centers and because of generally liberal from other banks. These borrowings are used State laws permitting entry by foreign banking to finance their loan portfolios and to supply institutions. Illinois enacted legislation in late about $3 billion net to related institutions else- 1973 permitting foreign banks to establish where in the United States. branches in the Chicago area, but the standard The operations of California State subsidibanking assets of these branches had risen to aries of foreign banks continue to be smaller only about $1 billion as of September 1975. than the activities of the agencies. As of Sep- The standard banking assets of foreign banks tember 1975, these State chartered banks held in New York have grown from $14 billion in a total of about $4 billion of standard banking November 1972 to $29 billion in September assets, approximately one-quarter of which re- 1975, while during this same period New presented the acquisition of the statewide branch York's share declined from 78 per cent to 73 network of First Western by Lloyd's Bank Inper cent of the total for the entire United States. ternational. Another one-half of these assets Traditionally, foreign banking activity in New represent the activities of the U.S. subsidiaries York has been dominated by the activities of of Japanese banks that are engaged in retail the Japanese and Canadian agencies. Canadian banking activities. The share of the Japanese banks have been restricted to the agency form subsidiaries in the total will increase somewhat of operation because of reciprocity provisions when later data include the merging of Southern in New York State law. Japanese banks have California First National Bank of San Diego, preferred the agency form of operation in New with total assets of about $900 million, into York because it permits them not only to borrow California First Bank, which is owned by the funds in U.S. money markets but also to lend Bank of Tokyo. Including the results of this without regulatory limits on the amounts loaned merger, total deposits at Japanese subsidiary to individual borrowers. banks will equal somewhat less than 4 per cent In recent years, however, the most significant of the deposits of weekly reporting banks in advances in the New York market have been California. through branches of foreign-banks. Their total The foregoing discussion has given only a standard banking assets increased from $3 bil- brief outline of the size, growth, and composilion in November 1972 to nearly $9 billion in tion of the U.S. activities of foreign banks. The September 1975, when they accounted for availability of detailed monthly data permits slightly less than one-third of the standard more comprehensive analysis of these activities, banking assets of all offices of foreign banks and some work in this area is currently under in New York. The rapid growth of these way by the Board s staff. It must be clearly branches, many with head offices in the United noted, however, that the absolute size and rapid Kingdom and continental Western Europe, has growth of the U.S. activities of foreign greatly changed the geographic pattern of banks—and their impact on domestic money ownership of foreign banks in New York and markets, domestic lending, local retail banking, has increased the diversity of institutions con- and the international payments position of the ducting business in the New York market. United States—require that these activities be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 863 supervised and regulated in a manner consistent Bank Holding Company Act of 1956, as amended and thus can engage directly in the with the regulation and supervision of domestic United States in any type of nonbanking banks. activities and can invest in any U.S. commercial firm, so long as it has the power to do so under the laws of its home country; and CURRENT REGULATION OF FOREIGN BANKS 5. Branches and agencies are not subject to any Federal bank examination, regulation, Turning to the current regulatory environment or supervision of the type carried out by the structuring foreign bank operations in the United Comptroller of the Currency, the Board, or the Federal Deposit Insurance Corporation States, and how this has led to certain dif- (FDIC). ferences in the regulatory treatment of domestic and foreign banks, I think the central point to The current regulatory framework has, howbe made is that foreign banks are now almost ever, also imposed certain artificial or outmoded exclusively subject to State regulation with little restraints on foreign bank entry into the United or no Federal control. States. For example, foreign banks cannot or- If a foreign bank conducts its commercial ganize Edge Corporation subsidiaries that enbanking activities in the United States exclu- able large U.S. banks to conduct international sively through branch and agency forms of banking and financing operations in several organization, it is currently not subject to any cities that serve as centers of international trade Federal regulation, supervision, or examination. financing. This prohibition may no longer serve Since, as noted earlier, foreign banks conduct the national interest since it may artificially the majority of their operations through these reduce competition in some banking markets. forms of organization, the present system unac- The provision in the National Bank Act that countably exempts from Federal oversight those requires all directors of national banks to be operations that have the greatest potential for citizens has been a factor influencing many affecting the Nation's economy and its major foreign banks to organize State subsidiaries. The financial markets. lack of any provision in Federal law for the The principal regulatory advantages for a establishment of Federal branches is in sharp foreign bank in operating through branch and contrast to the situation in most foreign counagency forms of organization are the following: tries, where foreign banks establish branches approved by the national government. (As of 1. Branches and agencies are not legally September 1975, there were 751 branches of subject to any of the reserve requirements or other regulations affecting monetary pol- domestic banks abroad.) The U.S. regulatory icy placed on the operations of national and policy should encourage foreign banks to opt State member banks; for national rather than State subsidiaries and 2. Branches and agencies are not subject branches, since those options would avoid to any Federal restrictions on multi-State problems of State reciprocity and would afford banking and thus can be established in any greater Federal control over the U.S. operations State that permits entry, even if a foreign bank has a State or Federally chartered sub- of foreign banks. Finally, the lack of availability sidiary bank in another State (44 foreign of FDIC insurance for deposits and credit-balbanks have commercial banking operations ance accounts at branches and agencies has in more than one State); proven a disadvantage in competing in retail 3. A foreign bank maintaining only banking markets but may give a nominal cost branches and agencies is not subject to the advantage to foreign banks since U.S. banks prohibitions of the Glass-Steagall Act, and thus can maintain those banking operations must meet FDIC assessments on similar liabiliand at the same time have an interest in a ties. securities firm in the United States (21 foreign banks with commercial banking The current pattern of State regulation may operations in the United States have interests also, in some cases, lead to anticompetitive and in U.S. broker-<lealers); other results not in the national interest. For example, a foreign bank may not be able to enter 4. A foreign bank maintaining only branches and agencies is not subject to the a U.S. banking market because of State law Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 Federal Reserve Bulletin • December 1975 » restrictions. This situation could, in some cases, quirements for directors of national banks are prevent a domestic bank in that State from relaxed in order to give foreign banks a real entering the foreign bank's home country if the choice in deciding whether to establish a nahome country were to impose a reciprocity tional or State subsidiary; foreign banks are requirement. The net effect of such a situation given the opportunity to establish Federal as is a reduction in U.S. banking competition and well as State branches; the Edge Act is amended a potential impediment to the foreign commerce to permit foreign banks, with Board approval, of the United States. Such situations might also to acquire Edge Corporation subsidiaries; and involve important foreign policy considerations it is recommended that the FDIC Act be between the United States and the home amended in order to permit branches and agencountry. Clearly, a national policy and a na- cies to obtain insurance on their deposits and tional regulatory system are needed so that credit balance accounts. questions of reciprocity, as well as other matters The Board's proposal closes Federal regulaof national interest, can be judged on a national, tory gaps by amending the definition of "bank" not local, level. in the Bank Holding Company Act to include The United States is virtually the only country branches and agencies of foreign banks, and by that does not have central bank control over the making other amendments to that Act designed activities of foreign banks within its borders. to ensure that branches and agencies of foreign This situation creates a gap in the Federal Re- banks are treated the same as any U.S. banking serve's control over domestic monetary condi- organization with similar commercial banking tions that will inevitably widen and increase in powers. As a result, all branches and agencies importance as foreign bank activities continue would have to become insured banks; additional to grow. branches and agencies could only be established with Board approval and subject to Board analysis of financial, managerial, competitive, and MAJOR POINTS convenience and needs considerations; branches OF BOARD'S PROPOSAL and agencies could not be established outside I would now like to highlight briefly the major a foreign bank's State of principal banking points of the Board's proposed legislation. operations unless a State bank in that State could In the Board's judgment, two basic policy also establish such offices; the parent foreign goals are embodied in its proposed foreign bank bank would be subject to all of the nonbanking legislation. The first goal is the adoption by the prohibitions of the Bank Holding Company Act; Federal government of the principle of national and, lastly, the parent foreign bank and its treatment, or nondiscrimination, toward the nonbanking subsidiaries would be subject to the operations of foreign banks in this country. Board's cease-and-desist authority for unsafe Second is the goal of establishing a comprehen- and unsound practices. sive system of Federal supervision, regulation, Any branch, agency, or subsidiary bank of and examination of foreign bank operations in a foreign bank with worldwide bank assets in the United States in order to implement the excess of $500 million would also be required principle of national treatment and to provide by the Board's proposed legislation to become a framework for regulating the U.S. activities a member of the Federal Reserve System and of foreign banks in view of their impact on the would thus become subject to the same kind Nation's domestic and foreign commerce. of Federal monetary controls and Federal bank The proposal seeks to implement the policy examination, regulatory, and supervisory conof national treatment by amending U.S. banking trols that apply to other member banks. In laws to provide foreign banks with the same addition, as member banks, such branches, opportunities to conduct activities in this agencies, and subsidiaries would become subject to the prohibitions of the Glass-Steagall Act country as are available to domestic banking and, as insured banks, would become subject institutions and by subjecting them to the same to the provisions of the Bank Merger Act, rules and regulations. Thus, the citizenship re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 865 Financial Institutions Supervisory Act of 1966, banks abroad. This opinion is based primarily as amended, and other provisions of the FDIC on Board members' discussions with foreign Act. central and commercial banks and U.S. banks The Board's proposed legislation creates a with significant operations abroad. I know sevcomprehensive system of Federal supervision, eral members of this committee recently went regulation, and examination of foreign bank abroad to study international banking issues, operations not only through the various amend- and some must have come back with this same ments to U.S. banking laws but also through impression. While I will discuss the size of U.S. the establishment of a Federal licensing proce- banking operations overseas in connection with dure on future entry. This procedure would give Title VII, I think it is obvious that our banking the Federal Government the opportunity to con- system and its U.S. banking customers would sider national interest and foreign policy factors be a net loser in any possible retaliatory efforts. in foreign bank entry, as well as the banking Aside from such considerations, however, the factors that will be considered by the bank Board also strongly believes that a failure to regulatory agencies. This greater Federal role permanently grandfather existing operations will serve to facilitate greater cooperation would be unduly harsh and unfair in light of among bank regulatory authorities and will the grandfather privileges previously extended strengthen the ability of the national Govern- bank holding companies. Several bank holding ment to obtain national treatment for U.S. companies with multi-State banking subsidiaries banking institutions abroad. were given permanent grandfather rights in 1956 and again in 1966 when the test for determining a bank holding company's State of principal TITLE VI OF banking operations was clarified. In 1970 non- THE FINE PRINCIPLES banking activities of one-bank holding compa- There are some significant differences between nies were permanently grandfathered so long as the Discussion Principles in Title VI and the they were commenced on or before June 30, Board's proposal on which I would like to 1968, and were engaged in continuously since comment. First, the introduction to the prin- that date. Given these precedents, foreign banks ciples makes clear that there would be no per- should be afforded similarly liberal grandfather manent grandfathering of the existing noncon- privileges. It must be remembered on this issue forming multi-State banking, nonbanking, and that foreign banks have established their operasecurities operations of foreign banks in the tions in complete conformance with existing United States. Rather, foreign banks would be laws; branch and agency forms of organization given a certain time period to phase out their are not devices for avoiding certain Federal nonconforming operations. In the Board's pro- banking laws but rather are well accepted forms posal, there would be permanent grandfathering of banking operations around the world. for all nonconforming banking and nonbanking The Board shares the concern of the Congress operations (including securities operations) es- that the policies of the Glass-Steagall Act and tablished on or before the original date of intro- the Bank Holding Company Act be enforced; duction of the Board's proposal in the Con- however, rather than abolish existing foreigngress—December 3, 1974. Nonconforming owned bank affiliations that would be prohibited multi-State banking operations established after by those acts, it seems that a better and fairer that date but before enactment would have to course of action would be to give the Board be phased out in 2 years; nonbanking operations the power to terminate such affiliations if, in commenced in that interval would have to be a particular case, the Board found, after notice phased out over 10 years. and opportunity for hearing, that such action The Board strongly believes that permanent was warranted. The Congress, in fact, adopted grandfathering of long-standing foreign bank this type of procedure in connection with its operations in this country is needed in order to permanent grandfathering of certain of the nonminimize any possible retaliation against U.S. banking interests of one-bank holding compa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 Federal Reserve Bulletin • December 1975 » nies in 1970. The Board has suggested a similar resort for such entities because, in the Board's review power over any permanently grandfa- judgment, the parent foreign bank's home thered nonbanking interests of foreign banks in country bears this responsibility; rather, it its proposed foreign bank legislation. means that branches and agencies should have Second, the FINE principles would not ex- the same access to short-term credit and clearing tend FDIC insurance to branches and agencies privileges as any other member banks. of foreign banks and, apparently, would not permit such entities to become members of the Federal Reserve System. Instead, under prin- OTHER REGULATORY ISSUES ciple 5, branches would not be able to accept INVOLVING FOREIGN BANKS domestic deposits because of the unavailability of FDIC insurance; they would, however, be In transmitting its proposed legislation to the subject to the same reserve requirements as are Congress, the Board noted that its proposal domestic banks, including reserve requirements would not cover foreign bank operations conon Euro-dollar deposits. The Board believes that ducted through so-called New York investment a prohibition on acceptance of domestic deposits companies, and would not specifically amend at U.S. branches of foreign banks would run the Bank Holding Company Act in order to counter to the principle of national treatment and subject the several foreign bank shareholders of would constitute a major operating disadvantage the European-American Bank and Trust Comfor several foreign banks in this country, since pany, New York, New York, to the provisions some branches, in funding their U.S. opera- of that act. tions, rely heavily on the issuance and sale of Investment companies organized under Arlarge-denomination certificates of deposit ticle XII of the New York Banking Law have (CD's) in domestic money markets. While, as many of the same banking and financing powers previously indicated, the Board believes that as agencies of foreign banks. Seven domesti- FDIC insurance should be extended to domestic cally owned investment companies appear to be deposits at branches, the absence of such insur- primarily engaged in finance company operaance should not be used as a justification for tions; four foreign-owned investment companies stopping the issuance of large-denomination are either subsidiaries or affiliates of foreign CD's by branches, since deposit insurance has banks and appear to conduct the same type of little relevance to such deposits. Such a prohicommercial banking operations carried on by bition would also place foreign bank branches agencies. In excluding foreign-owned investat a severe competitive disadvantage vis-a-vis ment companies from the coverage of its protheir domestic banking counterparts in the ofposed legislation, the Board was primarily infering of full-scale commercial banking serfluenced by the fact that only three such compavices, and would thus have anticompetitive efnies would have been covered at the time it fects on the commercial banking industry. It is submitted its proposal and that the New York also possible that such a prohibition could lead authorities had customarily discouraged charother countries to retaliate and erect similar tering of these entities in lieu of branch or prohibitions on the foreign operations of U.S. agency operations. The Board was also conbanks; such retaliation could, in turn, have a cerned that any attempt to cover only the few severe impact on the funding of such foreign foreign-owned companies would be regarded as operations. a discriminatory action by foreign authorities. While the Board agrees that branches and The Board notes that since submitting its agencies should be subject to the full panoply legislation, the New York banking authorities of regulations imposed for purposes of monetary have chartered an additional investment compolicy, the Board also believes that these entities pany subsidiary of a foreign bank and have should be given the same rights as any other received an application to organize another inmember bank. This does not mean that the vestment company from a private foreign bank. Board would necessarily be a lender of last The Board understands, however, that the New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 867 York authorities are currently reviewing their INTERNATIONAL OPERATIONS policy on chartering investment companies for OF U.S. BANKS foreign banks. Turning now to the second part of my assign- The Board believes that there is a potential ment for this morning—the operations of U.S. for evasion of its proposed legislation if foreign banks abroad—there is not in the Board's judgbanks can readily obtain investment company ment so clear or urgent a need for legislation charters in lieu of agency or branch licenses. as there is to provide for the regulation of the The Congress may thus wish to consider sub- operations of foreign banks in the United States. jecting all future investment companies that Those U.S. banks with operations overseas are would be chartered to engage principally in a subject to general Federal regulation and supercommercial banking business to the same scope vision in all their activities; in addition, they of Federal regulation that has been suggested are subject to specific regulations and supervifor agencies and branches in order to close this sion concerned with their international operapotential loophole. tions that at the direction of the Congress are With respect to domestic banks owned by administered by the Board. several foreign banks, the Board notes that the A number of problems and issues have New York banking authorities recently char- emerged in administering these particular protered a new bank that is to be owned by a group visions of law in recent years as the international of 11 Arab banks, 5 foreign consortium banks operations of U.S. banks have so rapidly excontrolled by Arab banks, and 4 domestic bank panded in scope and scale. It appears that most holding companies, the latter each having only of these can be handled or resolved within a statutorily permitted 5 per cent interest. While existing statutory authority. Nevertheless, some the Board will soon be considering the issue of them involve issues of public policy on which of whether the organizers of the proposed bank the Congress may wish to give guidance. will have to file an application under the Bank I shall begin by citing a few facts about the Holding Company Act, the current definitions scale and extent of U.S. banks' operations of "control" and "company" in the act do not abroad. I shall then go on to an account of how appear to cover certain multiple ownership situ- the Board has administered those provisions of ations where independent shareholders might act law on this subject for which it has been given in concert to control a bank, but do not consti- the responsibility for administration. Finally, I tute themselves into a corporation, partnership, shall turn to a discussion of some of the issues, association, or similar organization. including those mentioned in the Discussion Since it could become increasingly attractive Principles. for several foreign banks to organize so-called In view of the widespread public comment consortium banks in the United States if in recent years on the expansion of the internabranches and agencies of foreign banks are tional operations of U.S. banks, it is hardly subjected to Federal regulation, the Congress necessary for me to describe that expansion in may want to consider amending the Bank Hold- any detail. A few of the key facts about those ing Company Act to give the Board jurisdiction operations, however, will help provide perspecover situations where independent shareholders tive on the comments that follow: that do not form themselves into a company, —As of September 1975, 126 U.S. banks as defined in the Act, nevertheless act in concert operated 751 foreign branches in more than 80 to control a bank. Since any such change would foreign countries around the globe with total affect domestic as well as foreign companies, assets of about $135 billion—net of claims on this issue would seem best considered in the other branches of the same parent bank. In context of bank holding company rather than addition, they have a large number of foreign foreign bank legislation: consistent with the subsidiaries with another $25 billion in assets. principle of national treatment, the Board be- Altogether, these overseas facilities are about lieves that similar standards should be applied three times as large in terms of assets as those to both domestic and foreign organizations. of foreign banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 Federal Reserve Bulletin • December 1975 » —These overseas operations are not only 3. To authorize direct investments by member large in an absolute sense, they are large in banks in the stock of foreign banks, and sorelation to the affairs of the individual banks called Agreement Corporations. concerned; for a number of major banks, more than one-third of their assets and of their income Under Section 25(a) of the Federal Reserve Act are in overseas facilities. 1. To charter Edge Corporations, as author- —U.S. banks are engaged in a wide range ized by that Section, to engage in international of financial activities throughout the world or foreign banking and other international or through their branches, subsidiaries, and affiliforeign financial operations. ates—commercial banking, trust activities, fi- 2. To establish rules and regulations governnancial leasing, wholesale and retail finance ing such Corporations. companies, underwriting, investment manage- 3. To authorize investments by such Corment and advisory services—to mention a few. porations in the stock of other companies not —These operations are carried on in many doing any business in the United States except different locales under different political and as incidental to their international or foreign economic conditions and, aided by modern business. communications and transportation, involve 4. To examine such Corporations and require large movements of funds across national fronthe filing of reports on their operations and tiers, swift shifts of assets from one location activities. to another, and rapid decisions to extend credits and to hedge risks. In sum, the task of supervising and regulating Under the Bank Holding Company Act banks has been substantially altered and en- 1. To authorize investments by domestic bank larged by the large size of the banks' interna- holding companies in the stock of foreign cortional operations, their potential impact on indi- porations not doing any business in the United vidual banks, the variegated activities that are States except as is incidental to their internaconducted overseas, and the speed with which tional or foreign business. events may occur. The public interest with which the Board has been concerned in regulating and supervising RESPONSIBILITIES the overseas activities of U.S. banks under these OF THE FEDERAL RESERVE statutory provisions has been that of helping to As I have already mentioned, the Congress has assure the soundness of those banks in this given to the Board specific responsibilities for country and their continued ability to provide supervising and regulating the international banking services to their communities. Specifioperations of member banks and bank holding cally, in approving member bank activities companies. These responsibilities are spelled overseas, the Board has examined the condition out in Sections 25 and 25(a) of the Federal of the individual bank and has sought to satisfy Reserve Act and in certain provisions of the itself that the bank was adequately capitalized Bank Holding Company Act of 1956, as and had sufficient management capabilities to amended. support those activities. Generally, in devising In brief, those responsibilities are: rules governing the overseas activities of member banks, the Board has been concerned with Under Section 25 of the Federal Reserve Act the nature of those activities and the risks asso- 1. To authorize the establishment of foreign ciated with them. Throughout, the Board has branches by member banks. been particularly concerned with the ability of 2. To authorize additional banking powers for the Federal Reserve and other bank supervisors foreign branches of member banks, subject to to provide adequate and continuing supervision certain limitations. to the banks' activities overseas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 869 ACTIVITIES AND RISKS banking and financial structure is the respon- IN INTERNATIONAL OPERATIONS sibility of foreign authorities, the Board has not extended the standards incorporated in the Bank I noted earlier that U.S. banks are engaged in Holding Company Act to the international aca wide range of financial activities in their tivities of U.S. banks. There has been, however, overseas operations. Some of these would not a recurring question about what limits, if any, be permitted to them within the United States. should be placed on the activities that U.S. In administering the statutory provisions to banks are permitted to engage in abroad. Central which I have referred, the Board has consist- to that question is an evaluation of the risks to ently given banks greater latitude in their direct which U.S. banks are or would be exposed in and indirect overseas activities than is permissi- their international operations. There are two ble to them at home. For example, foreign parts to such an evaluation: first, a judgment affiliates in certain countries have been permit- of the risks generally encountered in internated to engage in investment banking activities tional activities; second, a judgment of the risks abroad; the Board has, however, maintained the that might arise in connection with a particular Glass-Steagall wall in the United States by pro- activity. hibiting any foreign company in which a U.S. It is clear that banking outside the confines bank has a direct or indirect interest from un- of one's own country involves risks that are derwriting, distributing, or selling securities in qualitatively different from those in domestic the United States. banking. They would include foreign exchange This greater latitude in activities overseas has risks arising from fluctuations or changes in the been extended largely in order to enhance the relative value of currencies, political upheavals, competitive effectiveness of U.S. banks in and economic instability. The question has been foreign markets. Concern about the competitive whether these differences are quantitatively sigposture of the banks in these markets stems nificant, requiring special protective rules. To directly from the purposes of the legislation date, our answer to this question has been in authorizing the banks' foreign activities— the negative or, more accurately, inconclusive. namely, to further the foreign commerce of the On the basis of results so far, and all the returns United States by fostering a strong overseas may not by any means be in, loss experience banking organization to provide financing for in international banking and financial operations U.S. trading and investment interests. The rules has either been better or no worse than in governing banks in foreign countries reflect domestic operations. quite different banking requirements, banking That question is the general one. The more traditions, and legal and social structures from specific question is whether particular activities those of the United States. In many countries carry greater risks than should be borne by a banks have far wider powers than those in the banking organization, whether conducted in an United States. In these circumstances, it has international context or not. It has been argued seemed in the national interest to allow U.S. that for reasons of competitive equality, U.S. banks to take advantage of certain additional banks should be allowed to do anything in a powers and to fully and vigorously compete in foreign market that the banks indigenous to that those markets, unless there were compelling market can do. The Board has not fully accepted policy considerations to the contrary. this argument in acting on applications by banks A second reason for extending greater latitude to engage in activities abroad. The Board has to the banks in their international operations is thus far confined the banks in their overseas that many of the domestic constraints on banks activities to banking and related financial activiare basically concerned with the competitive ties. Equity investments in nonfinancial compaenvironment in the United States and with the nies have been permitted only as minor adjuncts concentration of financial resources in the to financing. In large part, the Board has limited United States. Because in foreign countries the participations in nonfinancial companies be- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 Federal Reserve Bulletin • December 1975 » cause it has believed the risks associated with audits in place and functioning; increasing atoperating participations are unfamiliar to bank tention is being given to this aspect of surveilmanagements and would impinge on bank lance. soundness. In some countries laws aimed at protecting The question of permissible activities abroad the confidentiality of relationships between and the risks associated with them is directly banks and their customers are in force that carry related to the issue of bank capital, to which with them criminal penalties. The existence of the Discussion Principles refer. The issue of these so-called bank secrecy laws has posed bank capital is a very thorny one indeed, and problems for U.S. supervision of the banks' one which has occupied the Board a great deal activities. These problems have been largely in the past few years. What can be said about resolved in ways satisfactory to all parties and that problem in the context of today's discussion to their respective responsibilities through the is that the Board, on the basis of experience maintenance at U.S. head offices of adequate so far, has not been convinced that special information for examination purposes. capital requirements are necessary for overseas It is proposed in Title VII that U.S. banks operations. Because of the desirability of main- should not be allowed to operate in such bank taining a sufficient level of bank capital to sup- secrecy countries. That proposal does not give port traditional banking and financing opera- sufficient weight to the importance of facilities tions, it may well be necessary to continue to in these countries to the over-all international limit participation in new lines of activity over- operations of the banks in question. Nor does seas. Conservation of bank capital, too, argues it give enough weight to the evolutionary for increasing efforts to assure that existing and process of arriving at the proper type of supertraditional activities are being conducted in a vision for bank facilities in those countries. sound and prudent manner. MULTINATIONAL COOPERATION SUPERVISION OF ON BANK SUPERVISION OVERSEAS ACTIVITIES Problems associated with the growth of interna- I have already indicated that the explosion of tional banking are common to bank supervisors international activities of U.S. banks has greatly everywhere. As a result of this experience and complicated the job of bank supervisors in this events of the past year or so, there is now a country in assuring that the banks are being far greater awareness of the mutuality of intersoundly run. Not only is it much more difficult ests among the banking authorities of various to keep track of what is taking place within the countries. banks, but it also requires trained personnel It is well known that, under the aegis of the capable of assessing operations in international Bank for International Settlements, a committee banking and financial markets. The dimensions has been set up to serve as a forum for exof this task have been formidable and we need changing information and views on problems of to continue striving for improvement. bank supervision in the major industrial coun- The Board in allowing banks to engage in tries. The Federal Reserve is participating in the activities abroad has insisted in its rules that work of that committee. Already that committee information about those activities be accessible is proving useful as a means of sharing experito U.S. bank supervisors. The Comptroller of ences of dealing with such problems as capital, the Currency and the Federal Reserve Board liquidity, supervision of foreign exchange both send examiners overseas to inspect the operations, and so forth. Hopefully, it will serve foreign branches of national banks and State as part of an international early warning system member banks, respectively. An important part to alert banking authorities to emerging probof any system of surveillance of the overseas lems in international banks. It is too early to activities of banks is to assure that the banks say how this will all work, but one can be themselves have adequate internal controls and hopeful that this cooperation among banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 871 authorities will lead to better supervision of the reflecting the absence of interest rate limitations international banking system. and reserve requirements. If the Federal Reserve were unable to control such shifts, there could be a serious weakening of the System's influ- THE FOREIGN WINDOW ence over domestic monetary and credit condi- Principle 2 of Title VII, states that, in order tions. An extensive and cumbersome system of to promote competition among banks of dif- regulation would thus be needed in order to ferent sizes in international financial markets, control the use of any foreign window. The U.S. banks should be able to establish overseas administrative and other costs of establishing departments in their domestic offices. These such a system of regulation in order to prevent offices would be allowed to engage in the same any potential weakening of the System's influactivities as foreign branches and would not be ence over domestic monetary policy would apsubject to the restrictions placed on the domestic pear to outweigh any potential benefits. activities of U.S. banks. About a year and a half ago, our staff reviewed the possible advantages and disadvan- DISCOUNT OF tages of establishing at U.S. offices of U.S. FOREIGN PAPER—PRINCIPLE 5 banks a new "foreign window," or overseas department, that would be segregated from do- In order to discuss the ramifications of the mestic accounts, and through which U.S. banks proposal to restrict access to the Federal Reserve could conduct business with foreign customers discount window to borrowings secured by free of regulations that are applied to domestic "domestic paper," it would be necessary to banking transactions. Although such foreign understand exactly what is meant to be included windows could provide some cost advantages within the term "domestic paper" and what and might promote international banking by considerations led to presentation of the prosmaller banks, it was concluded that the regula- posal. Taking the proposal at its face value, tory disadvantages outweighed any potential however, it would appear to prevent the Board benefits. from discounting or advancing funds on an A poll of banks taken at the time indicated obligation of any non-U.S. corporation or citithat foreign windows would not serve as substi- zen. This may not only be at cross-purposes tutes for full-service branches abroad and, for with the Board's present authority to discount many banks, would not provide significant cost obligations arising out of export-import transacor other operational advantages over "shell" tions but also could in some cases restrict the branches abroad. An important consideration in Board's ability to provide periodic and seasonal banks' decisions about any substitution of liquidity assistance to member banks and to foreign windows for foreign branches would fulfill its sometimes necessary role of lender of doubtlessly be the tax status of the window, and last resort. In the present environment, such a on this issue the committee may want to con- change would be undesirable for it would dissider the status of any such window under qualify a portion of a bank's assets that could municipal and State taxes as well as under be used to support its liquidity requirements. Federal taxes. For some time Federal Reserve policy has been Our reservations concerning the window arise directed toward measures that would strengthen mainly because of the scope for misuse of the the liquidity positions of U.S. banks. Moreover, window to conduct essentially domestic busi- the Board has for several years proposed legisness. U.S. corporations—using foreign subsidi- lation to broaden the range of collateral on aries as intermediaries—might shift substantial which member banks could borrow at the disamounts of their domestic U.S. banking trans- count window. In this regard, the Board supactions to the foreign window to take advantage ports the provision contained in the Financial of the special advantages offered by the win- Institutions Act approved by the Senate Banking dow—for example, higher rates on deposits, committee to permit Federal Reserve Banks to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 Federal Reserve Bulletin • December 1975 » extend credit on any acceptable collateral at the example, reduce export credits by U.S. basic discount rate. banks—nor would it necessarily improve the If the committee is concerned that the Federal credit quality of bank loan portfolios. In sum- Reserve System may be vulnerable to receipt mary, the Board sees no need for this proposal of poor foreign collateral, I would like to stress and believes its clear disadvantages outweigh that the Federal Reserve's current procedures for any intended benefits. discount credit to member banks provides for careful monitoring and review of the financial CONCLUSION condition of the borrowing bank and the quality of collateral presented. These procedures One issue that I have not dealt with this morning would, of course, apply as well to branches, is whether it would be in the public interest to agencies, and subsidiaries of foreign banks if transfer the Federal Reserve's present statutory they became members. Moreover, if the pro- authority over the foreign operations of U.S. posal is intended to influence the lending poli- banks and domestic operations of foreign bank cies of potential foreign-bank-owned members holding companies to the single bank regulatory of the System, it has been our general experi- agency proposed in the FINE Discussion Prinence that the special treatment of certain types ciples. I think members of the committee would of loans for collateral purposes at the discount agree that this aspect of Titles VI and VII would window is largely ineffectual in channeling a be best considered in future Board testimony bank's lending activities since banks often can on whether there should be a single regulatory find other means to collateralize borrowings. agency and whether the responsibilities of the The proposal also appears to be inconsistent Federal Reserve should be limited to central with one of the important objectives of the bank monetary functions—the subjects of Titles economic policies of this country—that of facil- IV and V of the FINE Principles. itating the expansion of foreign trade. Over the I hope that my comments here this morning longer term, it would appear to create incentives have been helpful to the committee and have to change the loan portfolios of U.S. banks, contributed to the FINE Study process. The increasing the volume of domestic paper— Federal Reserve, of course, stands ready to however defined—and reducing foreign credits. provide any further assistance your committee This form of credit allocation would not neces- may desire in its analysis of multinational sarily promote domestic spending—it could, for banking issues. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

873 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 21, 1975 Domestic Policy Directive The information reviewed at this meeting suggested that output of goods and services—which had turned up in the second quarter—increased at an annual rate of about 11 per cent in the third quarter and that prices, on the average, rose at a faster pace than in the first half of the year. Staff projections suggested that expansion in output, although continuing strong, would be less rapid in the fourth than in the third quarter and that growth would then moderate further in the first half of 1976. The projections also suggested that the rate of increase in prices over the period to mid-1976, while still relatively rapid, would be well below the high rate in the third quarter of 1975. In September retail sales apparently remained at about the level that had been reached in July after 4 months of large gains. Industrial production, which had turned up in May, expanded at progressively higher rates in the three following months. Employment in nonfarm establishments continued to expand in September, reflecting widespread gains among manufacturing industries, and the unemployment rate edged down further to 8.3 per cent from 8.4 per cent in August. The increase in the index of average hourly earnings for private nonfarm production workers was moderate in September; although increases had been substantial in the immediately preceding months, the advance over the third quarter remained somewhat less rapid than during 1974 and the first quarter of 1975. Wholesale prices of farm and food products rose sharply in September, and as in August, average wholesale prices of industrial commodities rose somewhat faster than earlier in the year, in part because of increases in prices of energy products. In August retail prices of foods had been unchanged, and the consumer price index had increased relatively little. Staff projections for the fourth quarter and for the first half of 1976 suggested that growth in personal consumption expenditures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 Federal Reserve Bulletin • December 1975 » would be substantial—although less so than in the third quarter of this year when growth had been stimulated by the tax rebates— and that business inventories would shift from substantial liquidation in the third quarter to little change in the fourth quarter and then to moderate accumulation. It was also anticipated that residential construction would continue to pick up and that business fixed investment would increase somewhat. However, growth in State and local government purchases of goods and services—which had slowed in the third quarter—was expected to remain at a reduced rate over the current and next two quarters. In addition, exports were projected to expand less than imports. The exchange value of the dollar against leading foreign currencies rose further in late September, extending the substantial gain that had begun in late June. Subsequently, it fell back to the mid-September level, in part because of declines in interest rates in this country relative to those abroad. In August the U.S. foreign trade surplus increased, reflecting appreciable gains in exports of soybeans, corn, and other agricultural products. Private capital transactions reported by banks, after having shifted to a net inflow in July, showed a larger inflow in August, and U.S. liabilities to foreign official agencies declined further. Total loans and investments at U.S. commercial banks increased slightly in September. Outstanding loans to business declined and total loans changed little, but banks again added a sizable amount to their holdings of U.S. Government securities. The outstanding volume of commercial paper issued by nonfinancial business— which had turned up in July and had increased further in August— declined sharply in September. Mi rose slightly on the average in September, but according to weekly data, it declined in the latter part of the month and in early October. From the second to the third quarter, M grew x at an annual rate of 6.9 per cent.1 Inflows of consumer-type time and savings deposits to banks and to nonbank thrift institutions continued to moderate in September, reflecting in part the attractiveness of alternative investments, and growth in M and M 2 3 slowed further. From the second to the third quarter, M and M 2 3 1 Growth rates cited are based on changes in the average amounts outstanding for the whole quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 875 grew at annual rates of 10.4 per cent and 13.1 per cent, respectively. On October 15 the Board of Governors announced a reduction in reserve requirements on member bank time deposits with original maturities of 4 years or more. The action—which was expected to release about $350 million in reserves to the banking system in the week beginning October 30—was designed primarily to encourage banks to lengthen the structure of their liabilities. It would also help to meet the seasonal need for bank reserves over the coming weeks and to facilitate moderate growth in monetary aggregates. System open market operations since the September 16 meeting of the Committee had been guided by the Committee's decision to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Immediately after the meeting, operations were directed toward a slight firming of bank reserve and money market conditions with the objective of moving the Federal funds rate up toward the midpoint of the 6 to 7 per cent range of tolerance that had been specified by the Committee. However, data that became available a week later suggested that in the September-October period M x and M would grow at rates near the lower limits of their ranges 2 of tolerance, and operations were directed toward a slight easing in bank reserve and money market conditions. Data that became available in early October suggested that in the September-October period both M and M would grow at rates x 2 well below the lower limits of the specified ranges of tolerance, and all available members of the Committee concurred in Chairman Burns' recommendation of October 2 that the Manager be instructed to aim to reduce the Federal funds rate to 6 per cent over the next few days. The available members—with one exception—also concurred in the Chairman's recommendation that the lower limit of the Federal funds rate constraint be reduced to 5% per cent, in order to provide leeway for further operations in the event that weakness of the aggregates was confirmed by incoming data in the following weeks. Later data did confirm the weakness, and operations were directed toward a further easing in bank reserve and money market conditions. In the remaining trading days before this meeting, the Federal funds rate was close to 5% per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 Federal Reserve Bulletin • December 1975 » Short-term market interest rates continued to change little in late September but then declined significantly in October under the influence of weakness in business demands for credit, indications of slow growth in monetary aggregates, and the decline in the Federal funds rate. On the day before this meeting, the market rate on 3-month Treasury bills was 5.90 per cent, down from 6.50 per cent on the day before the September meeting. Yields on longer-term Treasury and corporate securities also declined in early October, in response to the easing in short-term markets. However, yields on State and local government securities rose to new highs in the first week of October, reflecting widespread concern about the possible repercussions of the New York City financial crisis, but subsequently the market for issues other than those of New York improved somewhat. At this meeting the Committee reviewed the ranges for growth in the monetary aggregates over the period from the second quarter of 1975 to the second quarter of 1976 that it had specified at its July meeting. The Committee projected growth ranges that differed little from those specified earlier, and it decided to apply the ranges to the 12-month period from the third quarter of 1975 to the third quarter of 1976. Given the rates of growth realized in the second quarter of this year, the updating of the base allowed for slightly higher longer-run rates of monetary expansion than if the time frame from this year's second quarter to next year's had been retained. The growth range specified for M, as before, was 5 to IV2 per r cent. The ranges for M and M were widened by reducing the 2 3 lower end of each by 1 percentage point; thus, the ranges were IV2 to 10V2 per cent for M and 9 to 12 per cent for M . Those 2 3 adjustments were made because recent experience had suggested that pressures on market interest rates stemming in part from heavy Treasury borrowings might serve to moderate inflows of savings funds to depositary institutions. The associated range for growth in the bank credit proxy was 6 to 9 per cent. As at earlier meetings, it was understood that the longer-term ranges, as well as the particular list of aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It also was understood that, as a result of short-run factors, growth rates from month to month might well fall outside the ranges contemplated for annual periods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 877 In discussing current policy, the Committee took note of a staff analysis in which it was suggested that, in view of the projected expansion in GNP, growth in M was likely to resume in coming x weeks. Because of its reduced level in early October, however, Mi was expected to show relatively slow growth over the October-November period. Time deposit experience at banks and nonbank thrift institutions was expected to improve somewhat in the short run, in response to the declines in market interest rates that h&d occurred in recent weeks. During the discussion of current policy at this meeting, some Committee members expressed doubt concerning the strength of recovery in economic activity over the quarters immediately ahead, in part because of the possible repercussions of New York's financial problems and because of the relatively high levels of market interest rates prevailing at this early stage of the recovery. It was noted, moreover, that inflation remained a serious problem. Against that background, and in view of the recent weak performance of the monetary aggregates, some members advocated operations to ease bank reserve and money market conditions—with the objective of promoting prompt resumption of moderate growth in the monetary aggregates. There was some sentiment for maintaining prevailing money market conditions, in part because of the likelihood of substantial strengthening in demands for money and credit over coming months, which might lead to a reversal of the easing in money market conditions. None of the members advocated operations to tighten bank reserve and money market conditions in the period immediately ahead. At the conclusion of the discussion the Committee decided to seek bank reserve and money market conditions consistent with moderate growth in the monetary aggregates over the months ahead, while taking account of developments in domestic and international financial markets. Specifically, the members agreed that growth in Mi and M over the October-November period at annual rates 2 within ranges of tolerance of 3 to 7 per cent and 5V2 to SV2 per cent, respectively, would be acceptable. It was thought that such growth rates would be likely to involve an annual rate of growth in reserves available to support private nonbank deposits (RPD's) within a range of 0 to 4 per cent. The members agreed that until the next meeting the weekly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 Federal Reserve Bulletin • December 1975 » average for the Federal funds rate might be expected to vary in an orderly fashion within a range of 5lA to 6V4 per cent. It was understood, however, that unless new data suggested that growth in the monetary aggregates in the October-November period would exceed the rates now expected, operations would be directed toward moving the Federal funds rate down to 5 V2 per cent by the end of the statement week following this meeting. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that output of goods and services—which had turned up in the second quarter—increased sharply further in the third quarter. In recent months retail sales have been maintained at the higher levels reached in early summer, and industrial production has strengthened progressively. Nonfarm payroll employment continued to expand in September, and the unemployment rate edged down from 8.4 to 8.3 per cent. In September, as in August, average wholesale prices of industrial commodities rose somewhat faster than earlier in the year, in part because of increases in prices of energy products; prices of farm and food products rose sharply in September. The advance in average wage rates in recent months has remained somewhat less rapid than in 1974 and early 1975. After rising further in late September, the exchange value of the dollar against leading foreign currencies has declined to about its mid-September level. In August the U.S. foreign trade surplus increased as agricultural exports rose. Bank-reported private capital movements showed a further net inflow, while U.S. liabilities to foreign official agencies declined again. Mi rose slightly on the average in September but declined in the latter part of the month and in early October. From the second to the third quarter, however, Afx grew at a 6.9 per cent annual rate. Inflows of consumer-type time and savings deposits to banks and to nonbank thrift institutions continued to moderate in September, reflecting in part the attractiveness of alternative investments, and growth in M and M slowed further. Although condi- 2 3 tions in markets for State and local government securities continued to be adversely affected by New York's financial problems, most short- and long-term interest rates have declined in recent weeks. On October 15 the Board of Governors announced a reduction of member bank reserve requirements on long-term time deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 879 In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions that will encourage continued economic recovery, while resisting inflationary pressures and contributing to a sustainable pattern of international transactions. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Volcker, Baughman, Coldwell, Eastburn, Holland, Jackson, MacLaury, Mayo, Mitchell, and Wallich. Votes against this action: None. Absent and not voting: Mr. Bucher. Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are released about 45 days after the meeting and are subsequently published in the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

880 Law Department Statutes, regulations, interpretations, and decisions CREDIT BY BROKERS AND DEALERS be required to be registered except for the exemptions provided by paragraphs (2)(B) and (G) of The Board of Governors has amended its Regusubsection 12(g), or (b) a security of a class any lation T to assist in the private placement of portion of which was registered under section 5 securities. of the Securities Act of 1933 (15 U.S.C. 77e) and in connection with which the issuer is required AMENDMENT TO REGULATION T to file periodic reports under section 15(d) of the Act. Effective November 13, 1975, section 220.7(a) is amended to read as follows: SECTION 220.7— BANK HOLDING COMPANIES MISCELLANEOUS PROVISIONS The Board of Governors has amended its Regu- (a) Arranging for loans by others. A creditor lation Y to provide for registration of bank holding may arrange for the extension or maintenance of companies and certain subsidiaries wishing to percredit to or for any customer of such creditor by form the function of a transfer agent. any person upon the same terms and conditions as those upon which the creditor, under the provisions of this Part, may himself extend or maintain A M E N D M E NT TO REGULATION Y such credit to such customer, but only upon such terms and conditions, except that this limitation Effective December 1, 1975, section 225.5 is shall not apply to the arranging by a creditor: amended by adding paragraph (c) as set forth (1) for a bank subject to Part 221 of this Chapter below: (Regulation U) to extend or maintain credit on margin securities or exempted securities, or SECTION 225.5—ADMINISTRATION (2) for any person to extend or maintain credit sfe jfc * sjc s|c for the purpose of purchasing or carrying a security (including sale of a security with instalment pay- (c) Registration of certain bank holding ments or other credit features) in a transaction companies and their nonbank subsidiaries as which is exempt from the registration requirements transfer agents. (1) On or after December 1, of the Securities Act of 1933 by virtue of section 1975, no bank holding company or any of its 4(2) of that Act (15 U.S.C. 77d(2)) Provided, nonbank subsidiaries that are "banks " as defined That: in section 3(a)(6) of the Securities Exchange Act (i) the credit to be extended or maintained of 1934 ("Act"), shall act as transfer agent, as will not violate the provisions of Parts 207 and defined in section 3(a)(25) of that Act, with 221 of this Chapter; and respect to any security registered under section 12 (ii) the credit will not be used to purchase of the Act or that would be required to be regisor carry a security that is publicly-held. For the tered under section 12 of the Act, except for the purpose of this paragraph, a security shall be exemption from registration provided by subsecdeemed to be "publicly-held" if it is (a) a security tion (g)(2)(B) or (g)(2)(G) of that section, unless of a class that is registered, or will be required it shall have filed a registration statement with the to be registered (assuming existing circumstances Board in conformity with the requirements of requiring registration continue to prevail) within Form TA-1, which registration statement shall 120 days after the last day of the fiscal year of have become effective as hereinafter provided. the issuer, under section 12 of the Act or would Any registration statement filed by such a bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 881 holding company or its nonbank subsidiary shall SECTION 265.2—SPECIFIC become effective on the thirtieth day after filing FUNCTIONS DELEGATED TO BOARD with the Board, unless the Board takes affirmative EMPLOYEES AND TO FEDERAL RESERVE BANKS action to accelerate, deny or postpone such registration in accordance with the provisions of section (c) The Director of the Division of Banking 17A(c) of the Act. Such filings with the Board Supervision and Regulation (or in his absence, will constitute filings with the Securities and Ex- the Acting Director) is authorized: change Commission for purposes of section 17(c)(1) of the Act. (2) If the information contained in Items 1-6 (17) Under the provisions of section 17(A)(c)(2) of Form TA-1 becomes inaccurate, misleading or of the Securities Exchange Act of 1934, as incomplete for any reason, the bank holding com- amended, (15 U.S.C. 78 q-1) to accelerate the pany or its nonbank subsidiary shall, within effective date of a registration statement filed by twenty-one calendar days thereafter file an amend- a member State bank or a subsidiary thereof, a ment to Form TA-1 correcting the inaccurate, bank holding company, or a subsidiary of a bank misleading or incomplete information. Within holding company which is a bank as defined in thirty calendar days following the close of any section 3(a)(6) of that Act other than a bank calendar year (beginning with the period from the specified in clause (i) or (iii) of section 3(a)(34)(B) date as of which the registration statement is of that Act (15 U.S.C. 78c) with respect to its prepared to December 31, 1976) during which the transfer agent activities. information required by Item 7 of Form TA-1 becomes inaccurate, misleading or incomplete, the bank holding company or its nonbank subsidiary INTERPRETATION OF REGULATION Z shall file an amendment to Form TA-1, correcting the inaccurate, misleading or incomplete informa- Sections 226.8(c)(8)(i) and 226.8(d)(3) require tion. the disclosure of the total amount of the finance (3) Each registration statement on Form TA-1 charge "with description of each amount inor amendment thereto shall constitute a 4'report" cluded," except in the case of certain real property or "application" within the meaning of sections transactions. The question arises whether the na- 17, 17A(c) and^32(a) of the Act. ture of the finance charge must be described where only one type of charge, such as an interest charge, comprises the total finance charge. The primary purpose of this disclosure requirement is to assure that all sums which constitute RULES REGARDING finance charges under § 226.4(a) are properly DELEGATION OF AUTHORITY taken into account in determining the total finance The Board has amended its Rules Regarding charge. In addition, this information permits the Delegation of Authority to delegate to the Director customer to make a more meaningful comparison of the Division of Banking Supervision and Regu- of the finance charges and annual percentage rates lation the authority to accelerate the effective date available from various sources of consumer credit of a registration statement filed by a member State and to make an informed selection on this basis. bank or a subsidiary thereof, a bank holding com- A description of the amounts included in the pany, or a nonbank subsidiary of a bank holding finance charge is necessary to carry out the purcompany with respect to its transfer agent activi- poses of the Act only when the total charge inties. cludes more than one element. Therefore, where only a single type of charge comprises the finance charge, disclosure of the total dollar amount of A M E N D M E NT TO such charge, using the term "finance charge," RULES REGARDING complies with the requirements of §§ DELEGATION OF AUTHORITY 226.8(c)(8)(i) and 226.8(d)(3), and there is no Effective November 7, 1975 section 265.2(c) further requirement under those sections that the is amended by adding subparagraph (17) to read single type of charge be otherwise identified or as follows: described. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 Federal Reserve Bulletin • December 1975 » B A NK H O L D I NG C O M P A NY A ND B A NK M E R G ER O R D E RS ISSUED BY T HE B O A RD OF G O V E R N O RS ($4.8 million in deposits) and Page State Bank, ORDERS UNDER SECTION 3 Page ($2.8 million in deposits) are located in the OF BANK HOLDING COMPANY ACT relevant banking market and hold in the aggregate FIRST BUFFALO HOLDING COMPANY, approximately 21 per cent of total market deposits. BUFFALO, NORTH DAKOTA However, in view of the longstanding close relationships that have existed between the aforemen- Order Approving tioned banks, and the fact that the proposed trans- Formation of Bank Holding Company action is essentially a reorganization of Bank's First Buffalo Holding Company, Buffalo, North ownership from individuals to a corporation owned Dakota, has applied for the Board's approval under by the same individuals, it does not appear that § 3(a)(1) of the Bank Holding Company Act (12 consummation of the proposal would eliminate U.S.C. 1842(a)(1)) of formation of a bank holding significant existing or potential competition, nor company through acquisition of 90 per cent of the have an adverse effect on any other bank. Therevoting shares of First State Bank of Buffalo, Buf- fore, from the facts of record, it is concluded that falo, North Dakota ("Bank"). competitive considerations are consistent with ap- Notice of the application, affording opportunity proval of the application. for interested persons to submit comments and The financial and managerial resources and fuviews, has been given in accordance with § 3 (b) ture prospects of Applicant, which are dependent of the Act. The time for filing comments and views upon those same factors in Bank, are considered has expired, and the application and all comments to be satisfactory. Bank's projected income should received have been considered in light of the provide sufficient revenue to service the debt infactors set forth in § 3(c) of the Act (12 U.S.C. curred by Applicant incident to this transaction 1842(c)). without impairing the financial condition of either Applicant, a nonoperating corporation with no Applicant or Bank. Therefore, considerations resubsidiaries, was recently organized for the pur- lating to banking factors are consistent with appose of becoming a bank holding company through proval of the application. Although consummation acquisition of Bank ($2.6 million in deposits).1 of the proposal would have no immediate effect Bank is the 136th largest banking organization in on the banking services offered by Bank, consid- North Dakota and holds less than one-tenth of one erations relating to the convenience and needs of per cent of the total commercial bank deposits in the community to be served are consistent with the State. In the Casselton banking market,2 Bank approval of the application. It has been determined is the sixth largest of seven banking organizations that the proposed transaction would be consistent with approximately 7.3 per cent of the total de- with the public interest and that the application posits in commercial banks in the market. should be approved. Principals of Applicant are also principals in On the basis of the record, the application is another registered one-bank holding company3 approved for the reasons summarized above. The with its banking subsidiary in Mayville, North transaction shall not be made (a) before the thir- Dakota, approximately 60 miles north of Buffalo. tieth calendar day following the effective date of In addition, principals of Applicant are closely this Order, or (b) later than three months after the associated with six other banks in North Dakota, effective date of this Order, unless such period located from 17 to 130 miles from Bank. Two is extended for good cause by the Board or by of these banks, first State Bank of Arthur, Arthur the Federal Reserve Bank of Minneapolis pursuant to delegated authority. By order of the Secretary of the Board, acting pursuant to delegated authority from the Board of 1A11 banking data are as of June 30, 1974. Governors, effective November 3, 1975. 2 The Casselton banking market is approximated by the western two-thirds of Cass County. 3 By Order dated April 7, 1975, the Board approved the application of Goose River Holding Company, Mayville, North Dakota, to become a bank holding company through the (Signed) GRIFFITH L. GARWOOD, acquisition of The Goose River Bank, Mayville, North Dakota [SEAL] Assistant Secretary of the Board. (40 F.R. 16884). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 883 SWB CORPORATION, would not have a signficantly adverse effect on OKLAHOMA CITY, OKLAHOMA existing or potential competition, nor would it increase the concentration of banking resources in Order Approving any relevant area. Therefore, it is concluded that Formation of Bank Holding Company the competitive considerations are consistent with SWB Corporation, Oklahoma City, Oklahoma, approval of the application. has applied for the Board's approval under § The financial considerations relating to the 3(a)(1) of the Bank Holding Company Act (12 present proposal are consistent with approval of U.S.C. 1842(a)(1)) of formation of a bank holding the application. Although Applicant will incur company through the acquisition of 80 per cent acquisition debt in connection with this proposal, or more of the voting shares of Southwestern Bank it appears that Applicant will be able to service & Trust Company, Oklahoma City, Oklahoma this debt over a twelve-year period without im- ("Bank"). pairing the financial condition of Bank during that Notice of the application, affording opportunity period. Furthermore, it appears that the overall for interested persons to submit comments and financial condition of Applicant and the one-bank views, has been given in accordance with § 3(b) holding company in which a principal of Applicant of the Act. The time for filing comments and views is presently involved is satisfactory and consistent has expired, and the application and all comments with approval of the application. Managerial conreceived have been considered in light of the siderations are satisfactory and consistent with factors set forth in § 3(c) of the Act (12 U.S.C. approval of the application. 1842(c)). Affiliation with Applicant should enable Bank Applicant is a nonoperating corporation recently to expand and improve the banking services oforganized for the purpose of becoming a bank fered by it. Accordingly, these considerations reholding company through acquisition of Bank. The lating to the convenience and needs of the compurpose of the transaction is to effect a transfer munity to be served are consistent with approval. of the ownership of Bank from individuals to a It has been determined that the proposed transaccorporation owned by the same individuals with tion would be in the public interest and that the no change in Bank's management or operations. application should be approved.3 Bank (deposits of $20.7 million)1 is the 28th On the basis of the record, the application is largest of 69 banks in the relevant banking market2 approved for the reasons summarized above. The and controls approximately .67 of one per cent transaction shall not be made (a) before the thirof the total deposits in commercial banks in the tieth calendar day following the effective date of market. Upon acquisition of Bank, Applicant this Order, or (b) later than three months after the would control less than .3 of one per cent of total effective date of this Order, unless such period is commercial bank deposits in Oklahoma. One of extended for good cause by the Board, or by the the principals of Applicant has a voting interest Federal Reserve Bank of Kansas City, pursuant in another one-bank holding company and in three to delegated authority. other banks, all of which are located in Oklahoma By order of the Secretary of the Board acting City. On the basis of the facts of record, it appears pursuant to delegated authority from the Board of that consummation of the proposal would not Governors, effective November 19, 1975. materially alter the competitive relationship be- (Signed) THEODORE E. ALLISON, tween Bank and the one-bank holding company [SEAL] Secretary of the Board. and three other banks in the market in which this principal of Applicant has interests. Moreover, since Applicant has no present subsidiaries and the proposal involves the transfer of control of Bank 3Under a trust agreement, shareholders of Bank are the from individuals, to a corporation owned by the beneficial owners of 20 per cent of the shares of Oklahoma same individuals, consummation of the transaction Bankers Life Insurance Company, Oklahoma City, Oklahoma ("OBLIC"). Under §§ 2(g)(1) and 2(g)(2) of the Act, control of these shares would be attributed to Applicant upon its acquisition of Bank. The activities of OBLIC have not been determined to be permissible under § 4(c)(8) of the Act, and therefore, the indirect control of these shares by Applicant would be prohibited by § 4 of the Act. Accordingly, upon XA11 banking data are as of December 31, 1974. the acquisition of Bank, Applicant is required to divest itself 2 The relevant banking market is approximated by the Okla- of its indirect interest in OBLIC within the applicable time homa City SMS A. period provided in § 4(a)(2) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

884 Federal Reserve Bulletin • December 1975 » THE BANK OF NEW YORK COMPANY, INC., banking market. However, this situation is mitigated to some extent by the presence in the market NEW YORK, NEW YORK of 12 alternative commerical banking organi- Order Approving Acquisition of Bank zations, including five that are affiliated with large New York City-based bank holding companies. In The Bank of New York Company, Inc., New addition, the three largest banking organizations York, New York, a bank holding company within in the market control more than 92 per cent of the meaning of the Bank Holding Company Act, the market's commercial bank deposits;3 and even has applied for the Board's approval under § following consummation of this proposal, Appli- 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac- cant's ranking among the banking organizations quire all of the voting shares of Bank of Buffalo, in the market would be a distant fourth. Further- Buffalo, New York ("Bank"). more, de novo expansion by Applicant is not Notice of the application, affording opportunity regarded as a likely alternative in view of the for interested persons to submit comments and market's high unemployment rate, relatively low views, has been given in accordance with § 3(b) per capita income, and slow rate of economic of the Act. The time for filing comments and views growth. While it is the Board's view that consumhas expired, and the Board has considered the mation of the proposed acquisition would result application and all comments received, including in the elimination of some competition in the those of Mr. Gary M. Klein ("Protestant"), Buf- Buffalo banking market, the Board believes that falo, New York, in light of the factors set forth this proposal represents an appropriate means in § 3(c) of the Act (12 U.S.C. 1842(c)). whereby Applicant would enhance its ability to Applicant, the ninth largest banking organi- compete more effectively with the leading organization in New York, controls eight banks with zations in the market which would, over the longer aggregate deposits of approximately $2.9 billion, run, foster more vigorous competition among the representing approximately 2.2 per cent of the total banking organizations in the market. The Board deposits in commercial banks in the State.1 Ac- concludes that consummation of this proposal quisition of Bank would increase Applicant's share would not result in a significant adverse effect on of commercial bank deposits in New York State competition, and accordingly, competitive considby approximately 0.1 per cent and would have no erations are consistent with approval of the appliappreciable effect upon the concentration of bank- cation. ing resources in New York State. The financial and managerial resources and fu- Bank (deposits of $128 million), the fourth ture prospects of Applicant, its subsidiaries, and largest of fourteen banking organizations operating Bank are regarded as satisfactory. It is anticipated in the Buffalo banking market,2 holds approxi- that the future prospects of Bank will become even mately 3.7 per cent of the total deposits in com- more favorable as a result of Bank's affiliation with mercial banks in the market. One of Applicant's Applicant. Considerations relating to the financial subsidiary banks presently operates in the Buffalo and managerial factors are consistent with apbanking market and some of the offices of this proval of the application. Affiliation with Applisubsidiary bank compete directly with some of the cant will enable Bank to draw upon Applicant's offices of Bank. Through the offices of this sub- financial and managerial resources and extensive sidiary bank, Applicant controls approximately correspondent bank network and to offer improved one per cent of the total deposits in commercial and expanded banking services including internabanks in the market, and following consummation tional banking services, full trust services, and of this proposal, Applicant would control approxi- commercial checking services. In addition, Applimately 4.7 per cent of the total market deposits. cant states that Bank will offer its customers day- Thus, it appears that consummation of this acquisition would result in the elimination of some existing and future competition in the Buffalo 3The three largest banking organizations in the Buffalo banking market control approximately 48.2 per cent, 31.5 per cent, and 12.5 per cent, respectively, of the total deposits in 1A11 banking data are as of April 30, 1975. commercial banks in the market. Following consummation of 2 The Buffalo banking market is approximated by the Buffalo this proposal, Applicant would become the fourth largest SMS A, Shelby Township in Orleans County, and part of banking organization in the market, with 4.7 per cent of the northwestern Cattaraugus County. market's commercial bank deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 885 of-deposit-to-day-of-withdrawal savings accounts BANK OF BUFFALO, and reduced charges for commercial checking ac- BUFFALO, NEW YORK counts, and will maintain free personal checking Order Approving accounts and low interest auto loans. Accordingly, Application for Merger of Banks considerations relating to the convenience and needs of the communities to be served lend weight Bank of Buffalo, Buffalo, New York, a protoward approval of the application. It is the posed State member bank of the Federal Reserve Board's judgment that the proposed transaction System, has applied for the Board's approval, would be in the public interest and that the appli- pursuant to the Bank Merger Act (12 U.S.C. cation should be approved. 1828(c)), of the merger of that bank with Niagara Protestant has submitted comments in opposi- Frontier Bank of New York, Buffalo, New York, tion to the merger of Bank with Applicant's exist- under the charter of Bank of Buffalo. The applicaing subsidiary bank, Niagara Frontier Bank of tion of Bank of Buffalo to become a member of New York, Buffalo, New York, which is the the Federal Reserve System prior to consummation subject of a related Order of this date. Although of the proposed merger has been approved in a Protestant's comments were directed at the pro- separate action. posed merger, his objection actually appears to be As required by the Act, notice of the proposed concerned with the common ownership of the two merger, in a form approved by the Board, has been banks which would result from the proposed ac- published, and the Board has requested reports on quisition. Accordingly, the Board has considered competitive factors from the Attorney General, the Protestant's comments in connection with the ap- Comptroller of the Currency, and the Federal plication to acquire Bank. Protestant contends that Deposit Insurance Corporation. The Board has consummation of the proposed transaction would considered the application in light of the factors lessen competition among banks in the Buffalo set forth in the Act. banking market with a consequent reduction in the On the basis of the record, the application is amount of banking services offered to the public. approved for the reasons summarized in the As discussed above, the Board does not believe Board's Order of this date relating to the applicathat the amount of competition that would be tion of The Bank of New York Company, Inc., eliminated by this proposal is significant. Further- New York, New York, to acquire Bank of Buffalo, more, it appears that one result of the proposed Buffalo, New York, provided that said merger transaction would be- an- increase in the bank serv- shall not be made (a) before the thirtieth calendar ices available, while maintaining those existing day following the date of this Order, or (b) later services which Protestant apparently views as than three months after the date of this Order, beneficial to the community. It is the Board's unless such period is extended for good cause by opinion that Protestant has not presented adequate the Board or by the Federal Reserve Bank of New grounds to warrant denial of the subject applica- York pursuant to delegated authority. tion. By order of the Board of Governors, effective On the basis of the record, the application is November 19, 1975. approved for the reasons summarized above. The Voting for this action: Chairman Burns and Govertransaction shall not be made (a) before the thirnors Mitchell, Bucher, Holland, Wallich, Coldwell, and tieth calendar day following the effective date of Jackson. this Order or (b) later than three months after the (Signed) THEODORE E. ALLISON, effective date of this Order, unless such period [SEAL] Secretary of the Board. is extended for good cause by the Board, or by the Federal Reserve Bank of New York pursuant to delegated authority. By order of the Board of Governors, effective THE BANK OF NEW YORK, November 19, 1975. NEW YORK, NEW YORK Order Approving Voting for this action: Chairman Burns and Governors Mitchell, Bucher, Holland, Wallich, Coldwell, and Application for Merger of Banks Jackson. The Bank of New York, New York, New York (Signed) THEODORE E. ALLISON, ("Applicant"), a member State bank of the Fed- [SEAL] Secretary of the Board. eral Reserve System, has applied for the Board's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Federal Reserve Bulletin • December 1975 » approval pursuant to the Bank Merger Act (12 bank. Since all of the banks involved in this U.S.C. 1828(c)) to merge with the following proposal are subsidiaries of Holding Company, banks in New York State: The Bank of New York, consummation of this proposal would not elimi- Albany; The Bank of New York Southern Tier, nate any existing or potential competition, increase Endicott; The County Trust Company, White the concentration of banking resources, nor have Plains; The Exchange Bank of Olean, Olean; any adverse effect on other banks within the re- Metropolitan Bank of Syracuse, Syracuse; Valley spective banking markets. Accordingly, the Board Bank of New York, Valley Stream; and Bank of concludes that competitive considerations are con- Buffalo, Buffalo, under the title and charter of sistent with approval of the application. Applicant. By Orders of this date the Board has The financial and managerial resources and fuapproved, in related actions, the application of The ture prospects of each bank are consistent with Bank of New York Company, Inc., New York, approval of the application. Holding Company New York, a registered bank holding company, anticipates that the merger of the eight banks to acquire Bank of Buffalo pursuant to section would result in an increase in operating efficiency 3(a)(3) of the Bank Holding Company Act (12 due to the centralization of the administration of U.S.C. 1842(a)(3)), and the related application of certain functions. Applicant states that following Bank of Buffalo to merge with Niagara Frontier consummation of the proposal, Applicant will be Bank of New York, Buffalo, New York. Thus all able to provide a broader range of trust services of the eight merging banks are subsidiaries of The to upstate customers and will provide daily com- Bank of New York Company, Inc. (''Holding pounding of interest on savings deposits at all Company"). Incident to the proposed merger, the branches of Applicant. In addition, Applicant will existing offices of the banks that are proposed to be better able to serve large corporate customers be merged would become branch offices of the as a result of a higher lending limit. Accordingly, resulting bank. considerations relating to the convenience and As required by the Act, notices of the proposed needs of the communities to be served are regarded transactions, in a form approved by the Board, as consistent with approval of the application. It have been published, and the Board has requested is the Board's judgment that consummation of the reports on competitive factors from the Attorney proposal would be in the public interest and that General, the Comptroller of the Currency, and the the application should be approved. Federal Deposit Insurance Corporation. The Board On the basis of the record, the application is has considered the application and all comments approved for the reasons summarized above. The and reports received in the light of the factors set transaction shall not be made (a) before the thirforth in the Act. tieth calendar day following the date of this Order, Applicant, with deposits of approximately $1.4 or (b) later than three months after the date of billion,1 is the twelfth largest commercial bank in this Order, unless such period is extended for good New York State. The other subsidiary banks of cause by the Board, or by the Federal Reserve Holding Company have offices and deposits as Bank of New York pursuant to delegated authorfollows: The Bank of New York, Albany has 7 ity. offices and deposits of $64.1 million; The Bank By order of the Board of Governors, effective of New York Southern Tier has 5 offices and November 19, 1975. deposits of $48.2 million; The County Trust Voting for this action: Chairman Burns and Gover- Company has 70 offices and deposits of $1 billion; nors Mitchell, Bucher, Holland, \yallich, Coldwell, and The Exchange Bank of Olean has 3 offices and Jackson. deposits of $53.3 million; Metropolitan Bank of (Signed) THEODORE E. ALLISON, Syracuse has 5 offices and deposits of $51.5 mil- [SEAL] Secretary of the Board. lion; Valley Bank of New York has 29 offices and deposits of $243 million; and Bank of Buffalo has 20 offices and deposits of $167 million (pro forma). COMMUNITY BANCORPORATION, This proposal represents a corporate reorgani- COLUMBUS, OHIO zation whereby Holding Company would merge Order Denying Acquisition of Bank eight of its existing subsidiary banks into a single Community Bancorporation, Columbus, Ohio, 1A11 banking data are as of June 30, 1975. a bank holding company within the meaning of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 887 the Bank Holding Company Act, has applied for ing or potential competition in any relevant area the Board's approval under § 3(a)(3) of the Act and competitive considerations are, therefore, (12 U.S.C. 1842(a)(3)) to acquire 94.6 per cent consistent with approval of the application. of the voting shares of Community National Bank, The Board's inquiry, however, does not end Flushing, Ohio ("Bank"). here. Under the Bank Holding Company Act, the Notice of the application, affording opportunity Board must also take into consideration the finanfor interested persons to submit comments and cial and managerial resources and future prospects views, has been given in accordance with § 3(b) of both the Applicant holding company and the of the Act. The time for filing comments and views bank to be acquired. In the exercise of that rehas expired, and the Board has considered the sponsibility, the Board finds that such considapplication and all comments received, including erations warrant denial of the application. comments submitted by the Comptroller of the In regard to such considerations, it is noted that Currency, in light of the factors set forth in § 3(c) Applicant has agreed in the event of favorable of the Act (12 U.S.C. 1842(c)). Board action and consummation of the acquisition, Applicant presently controls one bank, Com- to inject into Bank whatever amount of capital is munity National Bank, Mount Gilead, Ohio ("Mt. necessary so that, within 90 days following acqui- Gilead Bank"), with deposits of $11.0 million, sition, Bank's capital will equal or exceed $1.1 representing .04 per cent of total commercial bank million. While the proposed capital injection into deposits in Ohio. Acquisition of Bank ($12.4 Bank may be considered a favorable factor, the million in deposits) would have no significant Board is of the view that other facts of record adverse effect on the concentration of banking warrant denial of the application. In particular, it resources in Ohio.1 appears that the overall financial and managerial Bank is headquartered in Flushing, Ohio, and resources of Applicant are in need of strengthenoperates its only branch office in Barnesville, ing. Applicant's sole banking subsidiary at the Ohio, approximately 20 miles southwest of Flush- present time, Mt. Gilead Bank, is in need of ing. Bank is the second largest of four banks additional capital and further managerial attention competing in the Barnesville banking market (the is required to handle problems arising in connecrelevant banking market),2 and controls 20.3 per tion with several out-of-area loans recently put on cent of the market's total commercial bank depos- the books of Mt. Gilead Bank. In the Board's its.3 The largest bank in the market controls 64.9 view, Applicant's financial and managerial reper cent of market deposits. Mt. Gilead Bank is sources should be directed toward strengthening located approximately 140 miles northwest of its existing subsidiary rather than toward further Bank; accordingly, consummation of the proposed expansion. In addition, the financial and managetransaction would not result in the elimination of rial pressures currently being experienced by the significant existing competition. In view of the Mt. Gilead Bank are present to some extent with distances separating these banks, their relatively respect to the operations of Bank. Since certain small size, and Ohio's restrictive branching law, of the principals of Applicant are also principals it does not appear that significant competition of Bank and both Mt. Gilead Bank and Bank have between Bank and Mt. Gilead Bank would develop experienced certain financial problems under the in the future. In addition, due to the low population management of such individuals, the Board is per banking office ratio in Belmont County, where unable to conclude that the managerial consid- Bank is located, it is unlikely that Applicant would erations involved in the subject proposal are such enter that portion of the banking market de novo. that approval of the subject application would be On the basis of the facts of record, the Board appropriate. On the contrary, it appears that ficoncludes that consummation of the proposal nancial and managerial considerations, as reflected would have no significant adverse effects on exist- in the present operations of Mt. Gilead Bank and Bank, are not satisfactory and, therefore, such considerations weigh against approval of the application to acquire Bank. 1 All banking data, unless otherwise indicated, are as of In the Board's view, a bank holding company December 31, 1974, and reflect bank holding company formations and acquisitions approved through September 30, 1975. seeking to expand its banking interests should be 2 The Barnesville banking market is approximated by the able to demonstrate clearly the quality of its fiwestern two-thirds of Belmont County and Moorefield Town- nancial and managerial resources in the operations ship in southern Harrison County. 3 All market data are as of June 30, 1973. of its existing subsidiaries. If a bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 Federal Reserve Bulletin • December 1975 » company cannot do so, the Board believes that market, in light of the factors set forth in § 3(c) it would be inappropriate to permit such an orga- of the Act (12 U.S.C. 1842(c)). nization to expand further its banking interests Applicant, the eighteenth largest banking orgauntil its existing subsidiaries are in acceptable nization in the State, controls five banks with condition. Applying this standard to the present aggregate deposits of approximately $282 million, application on the basis of the facts of record, the representing 1.17 per cent of the total commercial Board is unable to conclude that approval of the bank deposits in the State.1 Bank is to be located subject application would be consistent with the in the City of North Miami and will be competing financial and managerial standards the Board is in the Greater Miami banking market.2 Applicant required to consider under section 3(c) of the Act, is the sixth largest of forty-five banking organinor would the public interest be served by such zations in this market, holding 4.58 per cent of action. total deposits. Since Bank is a proposed new bank, In regard to considerations relating to the con- its acquisition by Applicant would neither elimivenience and needs of the communities to be nate any existing or future competition nor immeserved, Applicant proposes to provide additional diately increase Applicant's share of commercial services to those presently offered by Bank. While bank deposits in any relevant area. these considerations appear to be consistent with In the course of its consideration of this appliapproval of the application, they are not sufficient, cation, the Board has received comments from in the Board's view, to outweigh the adverse Protestants which contend, in part, that North banking factors reflected in the record on Appli- Miami is not particularly attractive for de novo cant's proposal. Accordingly, it is the Board's entry because little growth in the area can be judgment that approval of the application would expected. Consequently, Protestants state, it is not be in the public interest and that the application doubtful that Bank can become a viable banking should be denied. institution. On the basis of the record, the application is The Board has reviewed the facts of record, denied for the reasons summarized above. including the past and projected growth of the By order of the Board of Governors, effective economy of the area, and finds that the economy November 28, 1975. of North Miami can reasonably be expected to support Applicant's entry. While the decision to Voting for this action: Chairman Burns and Gover- establish a new bank almost always involves some nors Mitchell, Holland, and Jackson. Absent and not voting: Governors Bucher, Wallich, and Coldwell. measure of risk, the Board is unable to conclude that Applicant's proposal involves more than the (Signed) THEODORE E. ALLISON, [SEAL] Secretary of the Board. usual entrepreneurial risks inherent in such a proposal. FIRST STATE BANKING CORPORATION, Alternatively, Protestants assert that any substantial growth by Bank would be at the expense MIAMI, FLORIDA of the area's existing banks. Applicant has realis- Order Approving Acquisition of Bank tically defined a service area for Bank which First State Banking Corporation, Miami, Florida encompasses no other banks. Banks located ("Applicant"), a bank holding company within around this service area have, for the most part, the meaning of the Bank Holding Company Act, sustained favorable growth in both deposits and loans over the past few years. In view of the has applied for the Board's approval under § growth pattern of the area's economy, it is the 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac- Board's determination that Applicant's entry will quire all of the voting shares (less directors' qualihave no significant adverse effects on neighboring fying shares) of North Miami First State Bank, banks. North Miami, Florida ("Bank"), a proposed new bank. Protestants further maintain that there is no Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) *A11 banking data are as of December 31, 1974, and reflect of the Act. The time for filing comments and views bank holding company formations and acquisitions approved has expired, and the Board has considered the through September 2, 1975. application and all comments received, including 2 The relevant market is approximated by Dade County and those communities found in the southern portion of Broward those of several banks located in the relevant County below Fort Lauderdale. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 889 public need for a new bank as there are seven FIRST UNITED BANCORPORATION, INC., banks within a two and one-half mile radius of FORT WORTH, TEXAS Bank's proposed site and there is little commercial activity at the proposed site. As discussed above, Order Approving Acquistion of Bank the Board finds that Bank's proposed service area First United Bancorporation, Inc., Fort Worth, includes no other banks and that the area's econ- Texas, a bank holding company within the meanomy can reasonably be expected to support Appliing of the Bank Holding Company Act, has apcant's entry. Finally, the Board notes that the plied for the Board's approval under § 3(a)(3) of Comptroller of the State of Florida has made a the Act (12 U.S.C. 1842(a)(3)) to acquire 51 per determination similar to that of the Board's on all cent or more of the successor by merger to Gateof the above issues. Accordingly, it is the Board's way National Bank of Fort Worth, Fort Worth, judgment, upon consideration of all the facts of Texas ("Bank"). Applicant presently holds 24.9 record, that the arguments raised by Protestants per cent of the voting shares of Bank. The bank are not sufficient to warrant denial of the subject into which Bank is to be merged has no signifiproposal. cance except as a means to facilitate the acquisition The financial condition and managerial reof additional voting shares of Bank. Accordingly, sources of Applicant and its subsidiaries are conthe proposed acquisition of shares of the successor sidered generally satisfactory and the future prosorganization is treated herein as the proposed acpects for each appear favorable. Bank, as a proquisition of the shares of Bank. posed new bank, has no financial or operating Notice of the application, affording opportunity history; however, its future prospects as a subsidifor interested persons to submit comments and ary of Applicant appear favorable. Thus, the conviews, has been given in accordance with § 3(b) siderations relating to the banking factors are conof the Act. The time for filing comments and views sistent with approval. has expired, and the Board has considered the In the Board's judgment, considerations relating application and all comments received in light of to the convenience and needs of the community the factors set forth in § 3(c) of the Act (12 U.S.C. to be served lend some weight toward approval, 1842(c)). in view of Applicant's plans to offer expanded Applicant, the ninth largest banking organizabanking hours and to pay the legal maximum rate tion in Texas, controls eight banks with aggregate of interest on savings deposits, a service not presdeposits of approximately $843 million, repreently offered by all other organizations in the senting approximately 2.0 per cent of the total market. It is the Board's judgment that consumdeposits in commercial banks in the State of mation of the proposed acquisition would be in Texas.1 Acquisition of Bank would not signifithe public interest and that the application should cantly increase Applicant's share of statewide debe approved. posits nor change Applicant's ranking among On the basis of the record, the application is Texas banking organizations. approved for the reasons summarized above. The Bank ($18.6 million deposits) is the 18th largest transaction shall not be made (a) before the thirof 46 banks in the Fort Worth banking market, tieth calendar day following the effective date of which is approximated by the Fort Worth RMA, this Order, or (b) later than three months after that and controls 0.7 per cent of the commercial bank date, and (c) North Miami First State Bank, North deposits in that market. Applicant is the second Miami, Florida, shall be opened for business not largest banking organization in the Forth Worth later than six months after the effective date of market with five subsidiaries controlling 29.3 per this Order. Each of the periods described in (b) cent of the deposits therein. and (c) may be extended for good cause by the Although Applicant and Bank operate in the Board, or by the Federal Reserve Bank of Atlanta, same market, the facts of record indicate that there pursuant to delegated authority. is little meaningful competition between Bank and By order of the Board of Governors, effective any of Applicant's subsidiaries. In addition to November 26, 1975. directly owning 24.9 per cent of the voting shares Voting for this action: Chairman Burns, and Gover- of Bank for several years, Applicant has had a nors Mitchell, Holland, Wallich, Coldwell, and Jackson. Absent and not voting: Governor Bucher. XA11 banking data are as of December 31, 1974, and reflect (Signed) THEODORE E. ALLISON, bank holding company formations and acquisitions approved [SEAL] Secretary of the Board. through September 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 Federal Reserve Bulletin • December 1975 » long-standing and close working relationship with the facts before them that a violation of the Act Bank. Moreover, it appears unlikely that this rela- had occurred and no action was taken, the Board tionship between Applicant and Bank would be does not believe that the facts surrounding the terminated even if the subject proposal were de- violation in this case are such as to call for denial nied. Thus, the prospect of competition developing of this application. Accordingly, having reviewed between the two is remote. Accordingly, based all the facts of record in this case, the Board has on the foregoing and other facts of record, the considered the subject application on its merits Board concludes that, on balance, competitive and, on that basis, concludes that approval of the considerations are consistent with approval of the proposal would be consistent with the public inapplication. terest. The financial and managerial resources and fu- Nevertheless, the Board believes it appropriate ture prospects of Applicant, its subsidiaries, and at this time to set forth for the record its view Bank are regarded as generally satisfactory and that transactions of the type described herein, if consistent with approval of the application. Ac- entered into without the prior approval of the quisition of Bank by Applicant should enable Bank Board, would justify a finding by the Board that to expand and improve the banking services of- a company (or a bank) has violated the provisions fered by it. Accordingly, the Board regards con- of the Bank Holding Company Act. Thus, the siderations relating to the convenience and needs Board believes it appropriate to caution companies of the community to be served as being consistent (and banks) to be circumspect in their activities with approval of the application. and to avoid scrupulously entering into or contin- In the course of its consideration of the subject uing any arrangements that may reasonably indiapplication, the Board noted that First National cate that the company has gained direct or indirect Bank of Fort Worth, Applicant's lead bank, was control or ownership of bank shares without the involved in the organization and subsequent Board's prior approval, as required by the Act. operations of Bank. Specifically, First National On the basis of the record, the application is Bank of Fort Worth made loans to three individ- approved for the reasons summarized above. The uals for the purpose of their subscribing to ap- transaction shall not be made (a) before the thirproximately 60 per cent of the shares of Bank; tieth calendar day following the effective date of such individuals were not personally liable on the this Order, or (b) later than three months after the loans extended by First National Bank of Fort effective date of this Order, unless such period Worth; payments on these loans have been nomi- is extended for good cause by the Board, or by nal and have been limited to the dividends declared the Federal Reserve Bank of Dallas pursuant to on Bank's stock held by the three individuals; and delegated authority. First National Bank entered into an understanding By order of the Board of Governors, effective with such individuals whereby it had the right to November 26, 1975. acquire the shares in Bank held by them at what Voting for this action: Chairman Burns and Goverwas in effect the original subscription price. In nors Mitchell, Holland, Coldwell, and Jackson. Absent the Board's view, the facts surrounding First Na- and not voting: Governors Bucher and Wallich. tional Bank's involvement with Bank are sufficient (Signed) THEODORE E. ALLISON, to justify at least a finding that, subsequent to the [SEAL] Secretary of the Board. passage of the 1970 Amendments to the Act, First National Bank of Fort Worth violated the Bank Holding Company Act. However, in accord with MARINE MIDLAND BANKS, INC., the Board's recently announced position with re- BUFFALO, NEW YORK spect to violations of the Act, the Board has Order Approving Acquisition scrutinized the underlying facts surrounding First of Bank and Merger of Banks National Bank's involvement with Bank and, upon an examination of all the facts of record, including Marine Midland Banks, Inc., Buffalo, New the fact that the Federal Reserve System was York ("Marine Midland"), a bank holding comapparently informed of First National Bank of Fort pany within the meaning of the Bank Holding Worth's involvement with Bank on several occa- Company Act, has applied for approval of the sions in the past and, in each of those instances, Board of Governors of the Federal Reserve System neither the Federal Reserve Bank of Dallas nor under section 3(a)(3) of the Act (12 U.S.C. the Board was able to conclude on the basis of 1842(a)(3)) to acquire 100 per cent of the voting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 891 shares of Marine Midland Bank, Buffalo, New domestic offices and are represented in every major York ("Bank"), a proposed new bank. banking market in the State. Notice of this application, affording opportunity After December 31, 1975, State law will permit for interested persons to submit comments and New York banks to establish branches at any locaviews, has been given in accordance with section tion within the State. The subject proposal con- 3(b) of the Bank Holding Company Act. The time templates the acquisition of Bank, a proposed new for filing comments and views with respect to this State bank, for the express purpose of facilitating application has expired, and all comments received the reorganization through merger of Applicant's have been reviewed. present banking subsidiaries into a single, State- Bank has then applied for the Board's approval wide bank. The New York State Banking Board pursuant to the Bank Merger Act (12 U.S.C. approved the organization of Bank on July 23, 1828(c)), of the merger of that bank with Marine 1975, subject to approval of deposit insurance by Midland's ten existing subsidiary banks,1 under the the Federal Deposit Insurance Corporation. In adcharter and title of Bank. Incident to the proposed dition, Bank has submitted an application for merger, the present offices of all ten subsidiary membership in the Federal Reserve System. banks of Marine Midland would become branch Since Bank would function only as a vehicle offices of Bank. for purposes of effecting the merger, its acquisition As required by Bank Merger Act, notice of the by Applicant would not eliminate any existing or proposed merger has been published in a form potential competition, increase the concentration approved by the Board, and the Board has re- of banking resources, nor have an adverse effect quested reports on competitive factors from the in any banking market. Rather, the relevant com- Attorney General, the Comptroller of the Cur- petitive considerations and those relating to the rency, and the Federal Deposit Insurance Cor- financial and managerial resources and future poration. prospects of Applicant and Bank, as well as con- The Board has considered each of the applica- siderations relating to the convenience and needs tions and all reports and comments, including of the community to be served, are those raised those of Mr. Gary M. Klein and the consolidated by the merger proposal. As set forth below, the protest of the New York Public Interest Research Board concludes that such considerations are con- Group and The National Public Interest Research sistent with approval. It is the Board's judgment Group (hereinafter referred to collectively as that the proposal for the acquisition of Bank is "PIRG"), in light of the factors set forth in the in the public interest and should be approved. respective Acts. As a result of the proposed merger of Appli- Marine Midland, the seventh largest banking cant's existing subsidiaries into Bank, Bank would organization in New York State, controls ten banks hold total domestic deposits of approximately $7.1 with aggregate deposits of approximately $7.1 billion, representing 6 per cent of total deposits billion, representing 6.0 per cent of the total com- in commercial banks in New York and retain its mercial bank deposits in the State of New York.2 ranking as the seventh largest banking organization Applicant's subsidiary banks operate a total of 342 in the State. Since each of the banks to be merged Total Total Head Office Domestic Domestic Marine Midland Banks, Inc., Buffalo Location Offices Deposits Marine Midland Bank—New York New York City 26 $3,133 Marine Midland Bank—Western Buffalo 91 1,497 Marine Midland Bank—Central Syracuse 45 638 Marine Midland Bank—Rochester Rochester 36 537 Marine Midland Bank of Southeastern New York, N.A. Poughkeepsie 38 313 Marine Midland Bank—Southern Elmira 25 306 Marine Midland Bank—Eastern, N.A. Troy 25 208 Marine Midland Tinker—National Bank East Setauket 27 177 Marine Midland Bank—Northern Watertown 19 168 Marine Midland Bank—Chautauqua, N.A. Jamestown 10 137 NOTE.—Unless otherwise indicated, deposit data and number of offices are as of June 30, 1975. 2AII banking data are as of June 30, 1975 (see foot- and acquisitions approved by the Board through October 31, note 1), and reflect all bank holding company formations 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 Federal Reserve Bulletin • December 1975 » into Bank is presently controlled by Marine Mid- time deposits will be increased, and that service land, consummation of the merger would not, in charges on certain consumer-type checking acthe Board's opinion, change competitive condi- counts will be eliminated. tions or have adverse effects on any other bank PIRG's contention that the application is defecin any relevant area. Competitive considerations tive since each of the items in the forms was not are, therefore, consistent with approval of the responded to is without merit.3 The purpose of merger application. the application forms is to elicit information nec- The Board has received two comments in oppo- essary for an informed decision based on the sition to the proposal that relate to the convenience statutory factors. In many cases, such as this one, and needs of the communities to be served. Mr. where the applicant is already operating in each Gary M. Klein, a shareholder of Marine, has of the communities to be served, a discussion of pointed out that the Marine subsidiary banks offer the convenience and needs factors may be more varying types of services to the public, and has meaningful in an alternative format. The formal argued that Marine should adopt for the merged schedules in an application are not intended to bank from among its banks those policies that limit an applicant's presentation on any of the would benefit the public most. In addition, PIRG, statutory factors. The Federal Reserve Bank of in various submissions, has urged the Board to New York did not "waive" the requirement for deny the applications or to obtain certain informa- a submission on the convenience and needs faction and commitments from Marine before acting tors, as PIRG asserts; rather, it simply authorized on the applications. PIRG has also requested that Applicant to present such data in a format different the Board delay action in this matter until after from that set out in the printed application forms. its action on another pending application with In any event, the Board believes that information respect to which PIRG has also filed comments necessary to make an informed decision on this in opposition. and other statutory factors has been submitted. In PIRG makes the following major points: particular, Marine has set forth a number of (A) The application is deficient because Marine convenience and needs benefits of the proposal that did not fill out certain sections of the application will, in varying degrees, accrue to customers of form relating to the convenience and needs of the Marine in the various communities that it serves communities to be served. Rather, with the con- throughout the State. currence of the Federal Reserve Bank of New In connection with its claim that Marine has not York, it submitted a separate general narrative demonstrated how it has served or will serve the statement on convenience and needs. Buffalo community, PIRG has called attention to (B) The application does not demonstrate how Marine's mortgage lending record, as set forth in the convenience and needs of the Buffalo area are the ECCO study, which, it argues, suggests that to be served. In this regard PIRG has submitted Marine has not attempted to meet the mortgage a study prepared by the Erie County Citizens needs of the City of Buffalo.4 Organization ("ECCO") analyzing the extent to In evaluating this charge, the Board believes it which the leading mortgage lenders in Erie County is important at the outset to emphasize that the have made individual and corporate mortgage allegation relates to only one type of banking loans within the City of Buffalo. PIRG has further service. Focus on one particular service does not requested that the Board obtain substantial and give a meaningful picture of a bank's overall detailed information relating to Marine's mortgage and other lending practices so that PIRG might 3PIRG has not requested a hearing, and there is, accordingly, comment further. no need for the Board to consider whether PIRG could qualify (C) Since the merger would eliminate locally as a party in interest in this matter. Of course, in matters arising under § 3 of the Bank Holding Company Act or the Bank oriented boards of directors and facilitate the Merger Act the Board is not required to afford an opportunity transfer of funds throughout the State, and thus for hearing, as it is under § 4 of the Bank Holding Company might potentially contribute to "disinvestment" in Act. 4In another case in which PIRG has made a similar claim, Buffalo, PIRG states that Marine must make a the applicant has argued that issues of discriminatory lending substantial commitment to Buffalo before the practices, or "redlining," are not relevant to the Board's Board may properly approve the application. consideration of applications under the Bank Holding Company Act involving mere corporate reorganizations. In the present With respect to the issues raised by Mr. Klein, case, however, Marine has not challenged the relevance of Marine has responded by stating that its various PIRG's claims. The Board need not rule on the issue of relevance in the present case, however, since PIRG's claims— services will be offered on a uniform basis even if they were determined to be relevant—fail on their throughout the system, that interest rates on certain merits for reasons summarized in the remainder of this Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 893 service to its community. Furthermore, there is Board itself undertake an investigation to obtain also the danger that by placing emphasis on one detailed loan data from Applicant on not only kind of service in evaluating an application the mortgage loans, but commercial and consumer Board could be deemed to overlook the interests loans as well, so that the Board and PIRG 4'may of other customers. The Board recognizes that properly evaluate the application." PIRG has not bank managements should and do have a range presented any facts suggesting that Marine has not of discretion as to the types of loans they will served the Buffalo community's needs for commake and the degree of risk they will assume. The mercial or consumer credit. Its request that the Board also notes that other agencies of government Board nevertheless investigate these aspects of may have primary enforcement responsibilities Marine's business raises a question as to the eswith respect to such matters as discriminatory sential function of the Board in considering each lending practices, and that there are constraints of the many hundreds of bank holding company upon the extent to which such laws as the Bank applications it receives each year, and in particu- Holding Company and Bank Merger Acts should lar, its role in cases such as this where a third-party appropriately be used to achieve favored social protest is received. objectives. Accordingly, irrespective of the weight The relevant statutes impose upon an applicant to be given by the Board to such charges, it may the burden of establishing that it has satisfied the be appropriate in certain cases for the Board to statutory criteria. When a third party raises an refer such matters to other agencies for investiga- objection to an application in response to the tion and enforcement. public notice thereof, the matter takes on the Even on the meris of PIRG's argument, how- nature of an adversary proceeding and the objectever, the data it has submitted does not indicate ing party assumes the burden of showing that a to the Board that adverse findings should be made particular statutory factor has not been satisfied on the convenience and needs factors in the present by the applicant. For the Board to assume this case.5 role, particularly where no factual foundation has In apparent recognition that the ECCO study been laid by the third party for the conclusions data do not establish discriminatory lending prac- it wishes the Board to reach, would be to weight tices by Marine, PIRG has requested that the such proceedings heavily in favor of those who seek to have applications denied. Banks and bank 5Rather, the ECCO study indicates: holding companies offer a wide variety of lending (1) During the survey period covered by the study, Marine and other services, and the Board does not believe Midland Bank-Western extended 25.1 per cent of its Erie that it is appropriate or necessary for the Board County mortgage credit in the City of Buffalo. In this regard, it ranked fourth among the 13 mortgage lenders in the area unilaterally to undertake an investigation of an in the percentage of Erie County mortage credit invested in applicant's performance with respect to each and Buffalo. every one of these in connection with an applica- (2) Marine Midland Bank-Western ranked first among the 13 institutions in the total dollar volume of mortgage credit tion. For the Board to do otherwise would offer extended in the City of Buffalo. great opportunities for objecting parties to shift to (3) Marine Midland Bank-Western ranked fifth in the perthe Board their own burden of establishing an centage of its total number of Erie County mortgage loans made to individual homeowners in the City of Buffalo, and opposition case, and would probably render the it ranked third among the 13 institutions in the total dollar Board unable to comply with the statutory mandate volume of mortgage credit extended to individuals in Buffalo. In this latter respect, it was exceeded only by two mutual of timeliness. savings banks, whose primary lending function is to serve the PIRG's protest does not, in the Board's judgmortgage market. ment, establish probable cause to believe that (4) Marine Midland Bank-Western was one of only two lenders that extended mortgage credit in each district in Buf- Marine Midland has failed to serve the needs of falo, and it ranked fourth in the proportion of its total number the community in which it operates, and the Board of Erie County mortgage loans extended to all types of borrowers within the City. does not believe that a major investigation of Apart from the fact that the ECCO study tends to support Marine's performance is justified on the basis of a conclusion that Marine has served the City of Buffalo to PIRG's contentions. a greater extent than many other mortgage lenders in the area, particularly commercial banks, the Board believes that data PIRG's third argument is that approval of the such as that set forth in the study should not be relied upon merger could lead to future "disinvestment" by as a basis for conclusions of the sort urged by PIRG. Obviously, many factors determine the locus of mortgage loans, Marine in the Buffalo area because the merger and in the absence of concrete evidence of actual discriminatory would facilitate the transfer of funds through the practices the Board cannot infer discrimination simply from Marine system. PIRG contends that "a bank data relating to differing volumes of mortgage credit in different areas. should meet the credit needs of the local commu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 Federal Reserve Bulletin • December 1975 » nity before it engages in any large scale transfer eling, or move from location to location within of funds to other areas." the State. Specialized services such as accounts It is true, of course, that by transforming sepa- receivable and inventory financing would be enrate subsidiary banks into branches of a unified hanced. The issuance of credit cards would be State-wide bank, the merger would make it easier simplified and Bank intends to establish uniform for Marine to use deposits received in one area types of deposit and checking accounts. Bank proof the State as a basis for making loans in another poses to raise the interest rate it has paid on certain area. However, the Board believes this could be time deposits, and in some instances, eliminate an advantage of the merger, and not a disadvan- service charges on checking accounts. Local trust tage. In the Board's view, it is undesirable as a offices will be supported by a central investment general matter to limit the ability of financial department with expanded facilities. There will be institutions to invest funds outside their local mar- additional benefits gained through the enhancekets, because such restraints risk inhibiting the ment of services resulting from uniformity of proflow of capital that is essential to support vigorous cedures. The Board therefore finds that some or economic growth throughout the nation as a all of these benefits will accrue to the various whole. Facilitation of this flow is one of the basic communities to be served, and that convenience purposes of a financial intermediary. Thus, the and needs considerations lend weight toward ap- Board does not accept the implicit assumption proval of the application. underlying PIRG's protest—that funds should be The Board further concludes that considerations invested in an area in proportion to the extent to relating to the financial and managerial resources which deposits are derived from that area. and future prospects of Marine and Bank are In any event, it is no more than speculation that consistent with, and lend weight toward, approval the merger will enhance "disinvestment" by of the application since consummation should Marine in Buffalo. Marine has served the Buffalo strengthen the Marine organization by allowing it market for many years and has a substantial cus- to better manage its overall asset, liability, and tomer and local deposit base in that market. It equity positions and facilitate the development of cannot be asumed, simply because the merger will greater management depth. eliminate some barriers to the transfer of capital Based on the above, the Board concludes that by Marine within the State, that Marine will con- there would be no adverse competitive effects to duct its business in the future in such a manner consummation of the proposal and that financial as to jeopardize its deposit base and impair a and convenience and needs factors lend weight competitive position in Buffalo that has been es- toward approval. The Board therefore concludes tablished over a long period. that the proposals are in the public interest and Having determined that the comments in oppo- should be approved.6 sition do not support an adverse conclusion on the On the basis of the record, the applications are convenience and needs factor, the Board now approved for the reasons summarized above. The proceeds to consider whether the record reflects, transaction shall not be consummated (a) before and Applicant has demonstrated, that convenience the thirtieth calendar day following the effective and needs considerations are consistent with or date of this Order or (b) later than three months weigh in favor of approval. after that date, unless such period is extended for It appears that the quality of services to Bank good cause by the Board, or by the Federal Recustomers in each of the communities served serve Bank of New York pursuant to delegated would be improved through certain efficiences of authority. operation and the utilization of centralized mana- By order of the Board of Governors, effective gerial expertise. In addition, Bank's lending limit November 19, 1975. would be greater than that of any existing subsidiary bank and as a result the need for participations between the existing subsidiary banks, which are accompanied by duplication of effort and additional costs, would be eliminated. Moreover, the transaction of banking business by customers of 6 We note that PIRG has requested that the Board delay action in this matter until after it has acted on another pending Bank, both commercial and individual, would be application as to which PIRG has filed comments in opposition. facilitated through more than 300 offices of a single This request is apparently based on a concern of inconsistent State-wide bank. This would be of benefit to those action. Since the Board itself will act on both applications and will be concerned with the matter of consistency, the customers who do a State-wide business, are travrequest is hereby denied. 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Law Department 895 Voting for this action: Chairman Burns and Governors adjacent Macon banking market,3 wherein it ranks Mitchell, Bucher, Holland, Wallich, Coldwell, and Jackson. as the third largest bank with deposits of $9 (Signed) THEODORE E. ALLISON, million. To the extent that Bank and Applicant's [SEAL] Secretary of the Board. Macon subsidiary derive some business from each other's market, consummation of the proposal would result in the elimination of some existing competition. However, in view of the relatively MERCANTILE BANCORPORATION INC., small percentage of deposits and loans derived by ST. LOUIS, MISSOURI each from the other market area, it does not appear that Applicant's acquisition of Bank would signif- Order Approving Acquisition of Bank icantly alter banking competition within the Shel- Mercantile Bancorporation Inc., St. Louis, bina market. Moreover, it appears that consum- Missouri, a bank holding company within the mation of the proposal would have little effect on meaning of the Bank Holding Company Act, has potential competition inasmuch as the Shelbina applied for the Board's approval under § 3(a)(3) banking market is not attractive for de novo entry. of the Act (12 U.S.C. 1842(a)(3)) to acquire 90 In addition, with the exception of a relatively small per cent or more of the voting shares of Shelbina subsidiary bank in Macon County, Applicant's Bank, Shelbina, Missouri ("Bank"). closest subsidiary is located 75 miles from Shel- Notice of the application, affording opportunity bina, and Applicant does not control a disprofor interested persons to submit comments and portionate share of the deposits or banking offices views, has been given in accordance with § 3(b) in the region surrounding the relevant market. of the Act. The time for filing comments and views Accordingly, on the basis of the record, the Board has expired, and the Board has considered the concludes that the proposed acquisition would not application and all comments received in light of have any significantly adverse effects on existing the factors set forth in § 3(c) of the Act (12 U.S.C. or potential competition. 1842(c)). The financial and managerial resources and Applicant, the largest banking organization and prospects of Applicant, its present subsidiaries, bank holding company in Missouri, controls 27 and Bank are regarded as generally satisfactory banks with aggregate deposits of about $1.9 bil- and consistent with approval of the application. lion,1 representing approximately 12 per cent of In regard to convenience and needs considerations, the total commercial bank deposits in the State. Applicant indicates that Bank will increase rates Acquisition of Bank would increase Applicant's on time and savings deposits; issue certificates of share of State deposits by less than one percentage deposit; make installment and residential real espoint and would not result in a significant increase tate loans; and furnish trust services to its customin the concentration of banking resources in the ers. These considerations relating to the conven- State. ience and needs of the community to be served Bank (approximately $15 million in deposits) lend weight toward approval of the application. is the largest of four banks in the Shelbina banking It is the Board's judgment that public benefits in market2 and controls approximately 56 per cent terms of increased convenience and services to the of the commercial bank deposits in the market. community likely to flow from the proposal out- The second and third largest banks in the market, weigh whatever adverse competitive effects might with deposits of $7 and $4 million, control ap- otherwise be deemed to result. Accordingly, the proximately 26 per cent and 15 per cent of the Board finds that the proposed acquisition would commercial bank deposits, respectively. Consum- be in the public interest and that the application mation of the proposal herein would represent should be approved. Applicant's initial entry into the Shelbina banking On the basis of the record, the application is market. Applicant's subsidiary bank closest to approved for the reasons summarized above. The Bank is located 23 miles west of Shelbina, in the transaction shall not be made (a) before the thirtieth calendar day following the effective date of this Order nor (b) later than three months after 1A11 banking data are as of December 31, 1974, and reflect holding company formations and acquisitions approved through September 8, 1975. 2 The Shelbina banking market is approximated by Shelby 3 The Macon banking market is approximated by Macon County. County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 Federal Reserve Bulletin • December 1975 » the effective date of this Order, unless such period Notices of the applications, affording opportuis extended for good cause by the Board, or by nity for interested persons to submit comments and the Federal Reserve Bank of St. Louis pursuant views on the public interest factors, have been duly to delegated authority . published (40 Federal Register 19540 and 24770). By order of the Board of Governors, effective The time for filing comments and views has ex- November 12, 1975. pired, and the Board has considered all comments received, including comments filed by the South- Voting for this action: Vice Chairman Mitchell and Gover- ern Consumer Law Center, Atlanta, Georgia, and nors Bucher, Holland, Coldwell, and Jackson. Absent and not voting: Chairman Burns and Governor Wallich. Mr. Anthony R. Martin-Trigona, Chicago, Illinois, in the light of the public interest factors set (Signed) THEODORE E. ALLISON, [SEAL] Secretary of the Board. forth in § 4(c)(8) of the Act (12 U.S.C. 1843(c)).1 Applicant, the largest banking organization in New York State and the second largest banking ORDER UNDER SECTION 4 OF organization in the United States, controls seven subsidiary banks operating an aggregate total of BANK HOLDING COMPANY ACT 279 banking offices throughout New York State.2 CITICORP, Applicant's lead bank, First National City Bank NEW YORK, NEW YORK ("Citibank"), New York, New York, is the larg- Order Denying Acquisitions est bank in New York State with domestic deposits of Amfac Credit Corporation, of $21.3 billion,3 representing 15.4 per cent of West Coast Credit Corporation, the total commercial bank deposits in the State, and Federal Discount Corporation and offers a full range of retail, wholesale, domestic, and international banking and trust serv- Citicorp, New York, New York, a bank holding ices. Applicant engages in a variety of permissible company within the meaning of the Bank Holding nonbank activities through 85 direct and indirect Company Act, has filed three separate applications domestic nonbank subsidiaries.4 Applicant's nonfor the Board's approval, under § 4(c)(8) of the bank activities include mortgage banking activities Act and § 225.4(b)(2) of the Board's Regulation and leasing activities, and through Nationwide, Y, to acquire indirectly through its subsidiary Applicant engages in consumer and sales finance Nationwide Financial Services Corporation ("Naactivities and in the sale of insurance which is tionwide"), all of the voting shares of Amfac directly related to extensions of credit. Credit Corporation ("Amfac"), Los Angeles, California, and West Coast Credit Corporation ("West Coast"), Seattle, Washington, and to acxMr. Anthony R. Martin-Trigona has filed with the Board quire substantially all of the assets of Federal several letters expressing objection to Applicant's proposal Discount Corporation ("Federal Discount"), Du- with respect to the application to acquire Federal Discount and buque, Iowa (referred to collectively as "Finance requesting that a formal hearing be held on the application. Citicorp has contested both Mr. Martin-Trigona's standing and Companies"). Amfac engages primarily in making the timeliness of his request for a hearing. By the Board's consumer installment loans, accounts receivable action herein, Mr. Martin-Trigona's request for a hearing financing, and equipment financing; West Coast becomes moot and, accordingly, no determination has been made with respect to his standing. In an Order entered July and Federal Discount engage primarily in making 28, 1975, in connection with the application of Mellon National consumer installment loans and purchasing con- Corporation to acquire Local Loan Company, the Board expressed doubt that Mr. Martin-Trigona satisfied the tests of sumer installment sales finance contracts. In addistanding that have been articulated by the courts, and indicated tion, all of the Finance Companies act as agent that in future cases in which he claimed standing as a potential in the sale of credit life, credit accident and health, competitor it would expect to be presented with credible evidence that he has taken meaningful and concrete steps to and where permitted under applicable State law, enter the consumer finance business. As of this date, no such property and casualty insurance, all of which are further evidence has been submitted. directly related to extensions of credit by the 2 Number of banking offices as of December 31, 1974. 3 Deposit data are as of December 31, 1974. offices of the Finance Companies. These activities 4 Applicant engages in mortgage banking activities through are conducted through offices of the Finance Advance Mortgage Company ("Advance"), Southfield, Michigan, a nonbank subsidiary which Applicant acquired on June Companies which operate as industrial banks or 15, 1970. Under the provisions of § 4(a)(2) of the Act, as consumer finance companies. Such activities Applicant may not retain the shares of Advance beyond Dehave been determined by the Board to be closely cember 31, 1980, without Board approval. By Order dated December 26, 1973, the Board denied Applicant's application related to banking (12 CFR 225.4(a)(1), (2), and to retain Advance pursuant to § 4(c)(8) of the Act. [60 Federal (9)). Reserve BULLETIN 50.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 897 In order to approve the subject application, § ing personal consumer loans. Three of these of- 4(c)(8) of the Bank Holding Company Act requires fices compete directly with 13 of the offices the Board to find that the performance of a partic- operated by West Coast. As in California, even ular activity by an affiliate of a bank holding though there are numerous alternative sources of company "can reasonably be expected to produce credit, the combination of these two firms would benefits to the public such as greater convenience, eliminate some existing competition and would increased competition, or gains in efficiency, that deprive the public of an alternative source of outweigh possible adverse effects, such as undue consumer credit. concentration of resources, decreased or unfair Federal Discount operates offices in 57 markets competition, conflicts of interests, or unsound which engage in the activity of making direct banking practices." This balancing test necessi- consumer loans. Nationwide competes directly tates a positive showing of public benefits, out- with Federal Discount in only one market and weighing the "possible" adverse effects of any neither company represents a significant competiproposed acquisition, before an application may tive force in that market. be approved. Applicant must bear this burden. In addition to the elimination of existing com- Applicant acquired Nationwide in 1973, at petition between Nationwide and each of the Fiwhich time Nationwide had assets of $31 million nance Companies, the facts of record indicate that and operated 85 small loan offices in 14 States. consummation of these acquisitions also would Since that time, Applicant has engaged in an result in the elimination of future and potential aggressive program of expansion, and since 1973, competition. Consummation of the proposed ac- Nationwide has opened 87 new offices and has quisitions would foreclose the likelihood that inentered seven additional States. At the present creased competition would develop in the future time, Nationwide has assets of $203.4 million,5 between Nationwide and each of the Finance total net receivables of $175 million, and operates Companies in those markets where the Finance 172 offices in 21 States. Companies presently compete with Nationwide. In Amfac (total assets of $54.3 million6), operates addition, Applicant has the financial and manage- 28 offices, primarily in southern California, which rial resources to expand Nationwide on a de novo make consumer and commercial loans. West Coast basis into many, if not most, of the other areas (total assets of $8.7 million7), operates 20 offices served by each of the Finance Companies. Furin the State of Washington, which make secured thermore, Nationwide's past expansion, noted and unsecured direct consumer loans and purchase above, demonstrates an inclination toward such sales finance paper. Federal Discount (total assets expansion. The Board also notes that legal barriers of $32.2 million8), controls seven wholly-owned to geographic expansion by Nationwide into most subsidiaries which operate a total of 67 offices in of the States and local markets served by each the States of Iowa, Illinois, Wisconsin, Minnesota, of the Finance Companies appear to be relatively and North Dakota, and which make direct con- low in terms of capital requirements, license costs, sumer loans and purchase sales finance paper. and the number of licenses granted in past years Nationwide operates five offices in California in the respective States. In those States where the which engage in consumer installment lending legal barriers to entry may appear to be somewhat activities. Four of these offices compete directly more restrictive, Nationwide would appear to be with 19 of the offices operated by Amfac. While able to surmount those barriers with a reasonable neither Nationwide nor Amfac is viewed as a amount of effort. Accordingly, the loss of existing, leading competitor in any of the local consumer future, and potential competition in the various finance markets in California, the combination of consumer finance markets served by the respective the two firms would, nevertheless, eliminate some Finance Companies represents an adverse effect existing competition and would deprive the public which is likely to result from this proposal and of one alternative source of consumer credit. which must be considered in evaluating this pro- Nationwide operates four offices in the State of posal. Washington which engage in the activity of mak- While the elimination of existing, future, and potential competition between Nationwide and each of the Finance Companies is a source of concern to the Board when viewed as individual 5 Asset data as of December 31, 1974. factors, it represents an even more serious adverse 6 Asset data as of March 1975. effect of these proposals when examined, as the 7 Asset data as of March 1975. 8 Asset data as of June 1975. Board believes it must be, in conjunction with a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 Federal Reserve Bulletin • December 1975 » collateral issue that has greater implications with zations in both domestic and foreign markets and respect to the public interest. The facts of record the implications of such expansion for the financial of these applications show that Applicant is one positions of the institutions. In cases where a of the leading bank holding companies in the banking organization has experienced significant United States, that it already has a consumer growth, the Board believes that additional weight finance subsidiary which is both substantial and must be given to considerations of whether progrowing in size, that Applicant's subsidiary has posals that would utilize funds for further expanachieved a significant presence in the finance sion rather than for improvement of the organicompany industry, and that Applicant has gained zation's financial position are consistent with the expertise and managerial talent in this financial public interest standard of § 4(c)(8) of the Act. area. The Board is of the view that, when all of A proposal which would divert funds to expansion, these factors are present, a proposal involving when those funds would be better utilized for subsequent acquisitions of additional finance com- improvement of the financial position, must be panies which are more than insignificant footholds accorded adverse weight. The facts of record of in the consumer finance industry offers substan- this proposal indicate that approval of these three tially diminished returns to the public interest.9 applications would result in the expenditure by Furthermore, Amfac and West Coast are among Applicant of approximately $28 million, including the largest remaining independent finance compa- up to $11.5 million in near-term post-acquisition nies in their respective States, California and commitments. In addition, consummation of this Washington, and all three Finance Companies acquisition is likely to result in further diffusion represent attractive vehicles by which bank hold- of Applicant's managerial resources through furing companies that have not yet entered the finance ther diversion of Applicant's and Citibank's expecompany field might do so. If banking organi- rienced managers to Applicant's and Citibank's zations that already have fairly sizable consumer affiliates and subsidiaries. The Board is of the finance subsidiaries are permitted to make addi- opinion that, at the present time, Applicant might tional acquisitions of the relatively few remaining better serve the public by directing its financial independent consumer finance firms, substantial and managerial resources toward maintaining barriers to entry into the consumer finance industry strong and efficient operations within its existing would be raised. The Board believes it is desirable structure. to foster the growth of as many significant Nation- As stated above, Applicant must bear the burden wide consumer finance competitors as possible, of showing that benefits to the public which may and further, that Applicant's proposed acquisitions be expected to result from this proposal outweigh would have an undesirable effect on such growth. in the public interest the possible adverse effects In addition to adverse factors set forth above, discussed above. Toward this end, Applicant this proposal raises other areas of some concern argues that consummation of the proposal would to the Board. An expansionary program, such as provide Nationwide with an optimum number of Applicant proposes for Nationwide, must neces- offices to realize a scale of operations necessary sarily be accompanied by concern for funding to implement certain economies. Applicant indirequirements and diversion of managerial talent cates that the resulting savings might make it away from solving existing problems to coping possible to provide substantial public benefits, with those problems which result from the expan- including lower finance charges. However, Applision. As the Board has previously stated on a cant offers no assurances that a reduction in finumber of occasions, a bank holding company nance charges, or any other benefits in the area should be a source of financial and managerial of improved and expanded service, will be imstrength for its subsidiary banks. The Board has plemented. The Board believes that Applicant in the past expressed its general concern with the has failed to meet the burden of demonstrating rapid expansion of some U.S. banking organi- that the acquisition of these firms would result in public benefits which are likely to outweigh possible adverse effects. Furthermbre, even if the 9 It is noted that Federal Discount ranks twentieth among proposed benefits could be assured, it is still not unaffiliated finance companies in the United States, Amfac clear that Applicant would meet the burdern of ranks twenty-eighth, and West Coast ranks among the top fifty. Thus, the proposed acquisitions represent much more than outweighing the possible adverse effects since insignificant foothold acquisitions. [Rank based upon total the facts of record indicate that Applicant can capital funds as of December 31, 1974, or nearest fiscal eventually, through the less anticompetitive year-end. (Source: American Banker, May 28, 1975).] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 899 means of de novo expansion and foothold acqui- Applicant's earnings have remained at 1971-73 sitions, achieve a scale of consumer finance levels—.64 per cent of average total assets. operations sufficient to permit implementation of Viewing this record, I see no reason to regard this any technological and other operating econo- application as imposing a significant drain on Apmies which may result in benefits to the public. plicant's managerial resources or earning capacity. Based on the foregoing and other considerations The major issue in this case, in my judgment, reflected in the record, the Board has determined, is the need to create an opportunity for Applicant in accordance with the provisions of §4(c)(8), that to demonstrate whether or not it can, by following the benefits to the public reasonably expected to a program indicated in its applicaiton, improve the result from consummation of this proposal do not quality, broaden the scope and reduce the cost of outweigh the possible adverse effects and that the financial services to consumers and small busiapplication should be denied. Accordingly, the nesses in several market areas. application is hereby denied. I am convinced that the only technique by which By order of the Board of Governors, effective financial services can be made available to the November 10, 1975. average consumer at reasonable cost is through the reduction in administrative paper work and over- Voting for this action: Chairman Burns and Gover- head which is necessary to process financial transnors Bucher, Holland, Coldwell, and Jackson. Voting against this action: Governor Mitchell. Absent and not actions. Where loan transactions, for example, voting: Governor Wallich. involve small amounts, conventional administra- (Signed) THEODORE E. ALLISON, tion and processing costs—when added to the cost [SEAL] Secretary of the Board. of money—result in prohibitive interest rates. Financial services need not be denied individuals or businesses because their needs are small in dollar Dissenting Statement of Governor Mitchell terms, even though marketing such services I dissent from the Board's denial of this appli- piecemeal has, in fact, forced many such potential cation because, I believe, overriding public benefit customers out of the market. To provide these considerations are at stake. Inherent in approval services to a broad spectrum of consumers and are substantial potential benefits for consumers and businesses, they must be packaged over a period other customers of finance companies. of time and in such a way as to combine a variety The majority advanced two reasons for denial. of financial and financially related services. One involves adverse effects on competition. This The Board has encouraged the entry of bank judgment seems to me to be insubstantial in view holding companies into the consumer finance inof the very large number of bank and nonbank dustry in the expectation that using their banking competitors in the affected market areas on the experience they can provide significant public West Coast. In California, for example, where the benefits to that segment of the public which obtain consumer market is most attractive, several of the its financial services from nonbanking sources and largest banks in the world are in competition with which has not been offered a wide range of finaneach other and many large nonbank lenders. I cial services at bank level interest rates. Such would judge that approval would actually be stim- services include much more than the personal cash ulative of competition. loans which typically are the principal service The other reason underlying the majority's de- offered by consumer finance companies. They can cision appears to be a concern for the strength and involve first and second mortgage loans, auto resources of our financial institutions, particularly loans, home improvement loans, education loans, in light of recent loan loss experience and uncer- money transfer, credit-related insurance, and fitainty as to how much longer it may continue. nancial counseling services. Besides these con- I share this concern but do not subscribe to a sumer-oriented services, small business loans, agblanket suspension of all new activities for every ricultural loans, commercial loans, and in some bank. Applicant has, in common with many major cases leasing and factoring services are available. banks, suffered substantial losses on its loan port- While consumer finance companies are moving in folio. Net charge-offs for Applicant were .31 per this direction, the pace of change has been concent of average loans in 1974 and .51 per cent strained by limited financial resources. The entry for the first three-quarters of 1975. These loss rates of bank holding companies into the field should compare to .26 per cent for 1971-73. Despite the hasten this developmental process. sharp rise in loss experience in 1974 and 1975, According to the record, Citicorp's plans to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 Federal Reserve Bulletin • December 1975 » develop finance company services along these lines Nebraska,1 is the second largest of five banks involve a certain scale of operation, a "critical located in the relevant banking market.2 Inasmuch mass," so to speak, to make it self-sustaining. as Applicant has no existing subsidiary banks and Applicant estimates that with its existing offices the proposal represents merely a restructuring of plus approval of this proposal, the minimum num- Bank's ownership, the acquisition of Bank by ber of locations or offices would be established Applicant would have no adverse effects on comto support profitable operations. Citicorp could petition within the area served by Bank. Accordalso achieve this scale of operation over time ingly, it is concluded that competitive considthrough the process of establishing de novo offices erations are consistent with approval of the applior through this series of small acquisitions. No cation. public purpose is met, so far as I can see, in The financial condition, managerial resources, enforcing such a delay or in discouraging the and prospects of Bank are regarded as satisfactory Applicant from undertaking a venture it is excep- and consistent with approval of the application. tionally well qualified to pursue. I would approve The management of Applicant is satisfactory, and the application. Applicant's financial condition and prospects, which are dependent upon profitable operations of FIRST NATIONAL AGENCY, INC., both Bank and the insurance agency, appear favorable. Although Applicant will incur debt in WAYNE, NEBRASKA connection with the proposal, the projected income Order Approving Formation from Bank and the insurance agency activities of Bank Holding Company and should provide sufficient revenue to service the Retention of Insurance Agency Activities debt without impairing the financial condition of Bank. In addition, the Board notes that principals First National Agency, Inc., Wayne, Nebraska, of Applicant, through nine other one-bank holding has applied for the Board's approval under § companies, have interests in six banks in Colorado 3(a)(1) of the Bank Holding Holding Company Act and three banks in Nebraska. In situations where (12 U.S.C. 1842(a)(1)) of formation of a bank individuals are involved in more than one oneholding company through acquisition of 88.7 per bank holding company, such as where individuals cent of the voting shares of First National Bank have established a series or chain of one-bank of Wayne, Wayne, Nebraska ("Bank"). Appli- holding companies, the Board has indicated that cant has also applied, pursuant to § 4(c)(8) of the such organizations should be analyzed under the Act (12 U.S.C. 1843 (c)(8)) and § 225.4(b)(2) more restrictive financial standards that are norof the Board's Regulation Y, for permission to mally used in analyzing multi-bank holding retain the general insurance agency business (in companies.3 Having applied such standards to a town with a population of less than 5,000) the present proposal, the Board finds that finanpresently operated by First National Agency, Inc. cial considerations, including the other banking on the premises of Bank. Such activities have been factors, relating to the present proposal are gendetermined by the Board to be closely related to erally satisfactory and consistent with approval banking (12 CFR 225.4(a)(9)(iii)(a)). of the application. Considerations relating to Notice of the applications, affording opportunity convenience and needs are also regarded as for interested persons to submit comments and being consistent with approval of the application views, has been given in accordance with §§3 to acquire Bank. It is the Board's judgement that and 4 of the Act (40 Federal Register 26734). The consummation of the proposal to form a bank time for filing comments and views has expired, holding company would be consistent with the and the applications and all comments received public interest and the application should be aphave been considered in light of the factors set proved. forth in § 3(c) of the Act, and the considerations Applicant has also applied to the Board to retain specified in § 4(c)(8) of the Act. Applicant was organized in February 1974 for the purposes of becoming a bank holding company 1 All banking data are as of December 31, 1974. 2The market is approximated by Wayne County. through acquisition of Bank and of operating an 3See Board's Order dated October 17, 1975, approving the insurance agency business. Bank, with deposits of application of Commercial Bankshares, Inc., Grand Island, approximately $12 million, representing .02 of 1 Nebraska, to become a bank holding company through acquisition of Commercial National Bank & Trust Company, Grand per cent of the total commercial bank deposits in Island, Nebraska. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 901 ownership of the insurance agency business, pur- Voting for this action: Chairman Burns, Governors suant to § 225.4(a)(9)(iii)(a) of Regulation Y, Holland, Wallich, Coldwell, and Jackson. Absent and not voting: Governors Mitchell and Bucher. which it purchased in March 1974. The agency would continue to engage in the sale of general (Signed) GRIFFITH L. GARWOOD, insurance lines such as credit life insurance; med- [SEAL] Assistant Secretary of the Board. ical and hospital insurance; crop hail, fire and casualty insurance; automobile liability insurance; PROFILE BANKSHARES, INC., homeowner's insurance; landlord and tenant in- ROCHESTER, NEW HAMPSHIRE surance; multi-peril insurance, workmen's com- Order Approving Formation of pensation and surety bonds. Such insurance activ- Bank Holding Company and ities are conducted on the premises of Bank in Operation of a Guaranty Savings Bank Wayne, Nebraska, a town which has a population of less than 5,000. It does not appear that the Profile Bankshares, Inc., Rochester, New retention of the insurance agency business would Hampshire, has applied for the Board's approval have any significant effect on existing or future under § 3(a)(1) of the Bank Holding Company Act competition. On the other hand, approval of the (12 U.S.C. 1842(a)(1)) ("Act") of formation of application would assure residents of the area of a bank holding company through the acquisition the continuance of a convenient source of insur- of 80 per cent or more of the voting shares of ance services, which factor the Board regards as First National Bank of Rochester, Rochester, New being in the public interest. There is no evidence Hampshire ("Bank"). in the record indicating that consummation of the Applicant has also applied, pursuant to § 4(c)(8) proposal would result in any undue concentration of the Act (12 U.S.C. 1843(c)(8)) and § of resources, unfair competition, conflicts of in- 225.4(b)(2) of the Board's Regulation Y, for perterest, unsound banking practices or other adverse mission to acquire 80 per cent or more of the effects on the public interest. voting shares of Rochester Savings Bank and Trust Based on the foregoing and other considerations Company, Rochester, New Hampshire ("Savings reflected in the record, the Board has determined Bank"). Savings Bank is a company that engages that the considerations affecting the competitive in the activities of a guaranty savings bank in New factors under § 3(c) of the Act and the balance Hampshire. Such an activity has not heretofore of the public interest factors the Board must con- been determined by the Board as permissible for sider under § 4(c)(8) both favor approval of Ap- bank holding companies. plicant's proposals. Notice of receipt of these applications has been Accordingly, the applications are approved for- given in accordance with §§3 and 4 of the Act the reasons summarized above. The acquisition of (40 Federal Register 7007) and the time for filing Bank shall not be made (a) before the thirtieth comments and views has expired. The Board has calendar day following the effective date of this considered the applications and all comments re- Order; nor (b) later than three months after the ceived, including those of Mr. Paul Batcheller effective date of this Order, unless such period Urion of Rochester, New Hampshire ("Protesis extended for good cause by the Board, or by tant"), in light of the factors set forth in § 3(c) the Federal Reserve Bank of Kansas City pursuant of the Act (12 U.S.C. 1842(c)), and the considto delegated authority. The determination as to erations specified in § 4(c)(8) of the Act (12 Applicant's insurance activities is subject to the U.S.C. 1843(c)(8)). No request for a hearing has conditions set forth in section 225.4(c) of Regula- been received. tion Y and to the Board's authority to require Applicant is a nonoperating corporation organreports by, and make examinations of, holding ized for the purposes of becoming a bank holding companies and their subsidiaries and to require company through the acquisition of Bank and of such modification or termination of the activities operating a guaranty savings bank in New Hampof a bank holding company or any of its subsidi- shire through the acquisition of Savings Bank. aries as the Board finds necessary to assure com- Bank holds deposits of $11.4 million, which reppliance with the provisions and purposes of the resent 0.9 per cent of the total commercial bank Act and the Board's regulations and orders issued deposits in New Hampshire.1 Bank controls 15.3 thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective Unless otherwise indicated, all banking data are as of June November 25, 1975. 30, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 Federal Reserve Bulletin • December 1975 » per cent of total deposits held by commercial banks consummation of Applicant's proposal will not in the Dover-Rochester banking market (the rele- significantly alter the structure of banking in the vant banking market),2 and is the third largest of State. nine commercial banks operating within the mar- The financial condition and managerial reket. sources of Applicant, which will be primarily Savings Bank holds deposits of $58.6 million, dependent upon those of Bank and Savings Bank, which represent 3.6 per cent of the total deposits are considered satisfactory and its future prospects in savings banks in the State. Within the relevant appear favorable. Thus, considerations relating to market, Savings Bank holds 31.2 per cent of the banking factors are consistent with approval of the total deposits in savings banks in the market and application to acquire Bank. is the second largest of four savings banks operat- In acting on the application to acquire Savings ing in the market. Bank, the Board must determine under the provi- The proposal is essentially a restructuring of the sions of § 4(c)(8) of the Act whether operation ownership of both Bank and Savings Bank of a guaranty savings bank in New Hampshire is whereby ownership will be shifted to a corporation so closely related to banking as to be a proper owned by the shareholders of each. Neither insti- incident thereto.4 In this regard, the Board notes tution offers any of the services offered by the guaranty savings banks are unique to New Hampother, nor engages in the activities engaged in by shire and, of the six guaranty savings banks the other, to a degree that is considered significant. operating in the State, three are affiliated with a Bank has primarily limited its activities to accept- commercial banking institution. Moreover, each ing demand deposits and making commercial and of the main customer services offered by guaranty consumer loans. Savings Bank, on the other hand, savings banks (i.e. accepting time and savings has limited its operations primarily to services deposits, acting as a fiduciary and dealing in real complementing those offered by Bank; it accepts estate mortgage financing) are offered by commertime and savings deposits, acts as a fiduciary, deals cial banks generally. It is the Board's view, in in real estate mortgage financing, provides trust light of the above and other facts of record, inservices,3 and maintains a safe deposit facility. In cluding the unique structural and competitive cirlight of the above and other facts in the record, cumstances existing in New Hampshire, that the no significant existing competition will be elimi- proposed activity is so closely related to New nated as a result of consummation of the proposals Hampshire banking as to be a proper incident herein. It also appears that no significant future thereto. competition would be eliminated. There is a long It is expected that approval of the applications history of cooperative operation between the two would result in more efficient operation of both institutions, and they are characterized by a high Bank and Savings Bank through the usfe of comdegree of common ownership. It appears unlikely bined managerial and financial resources and the that such a relationship would be altered if the elimination of duplicative management functions. subject proposals were denied. On the basis of the Moreover, the raising of capital for both institurecord before it, the Board concludes that con- tions should be facilitated through the holding summation of the proposals would not eliminate company structure. Finally; because of Applisignificant existing competition nor foreclose po- cant's bank holding company organization, it tential competition. would be able to better adapt to the apparent With respect to Statewide structure, formation of Applicant will result in the creation of a bank holding company controlling $11.4 million in commercial bank deposits and $58.6 million in 4 In commenting on the kinds of connections that may qualify an activity as "closely related" to banking within the meaning time and savings deposits. Banking in New of § 4(c)(8) of the Act, the D.C. Court of Appeals indicated Hampshire is not particularly concentrated and that at least the following seemed as within the statutory intent: "1. Banks generally have in fact provided the proposed services. 2. Banks generally provide services that are operationally 2 The Dover-Rochester banking market is approximated by or functionally so similar to the proposed services as to equip Strafford County, the towns of Brookfield and Wakefield in them particularly well to provide the proposed service. Carroll County, New Hampshire, and the towns of Berwick 3. Banks generally provide services that are so integrally and South Berwick in York County, Maine. related to the proposed services as to require their provision 3Because of special charter powers, only two of the six in a specialized form." (National Courier Association v. guaranty savings banks in New Hampshire, including Savings Board of Governors of the Federal Reserve System, 516 F. Bank, have trust powers. 2d 1229, 1237 (1975)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 903 long-run prospects of the communities it serves. under section 4(c)(8) of the Act in permitting a Furthermore, there is no evidence in the record bank holding company to engage in an activity indicating that consummation of the proposal on the basis that it is closely related to banking would result in any undue concentration of re- both favor approval of the applications. sources, unfair competition, conflicts of interests, The applications are hereby approved for the unsound banking practices or other adverse effects reasons summarized above. The acquisition of on the public interest. Bank shall not be made before the thirtieth calen- In its consideration of the subject applications, dar day following the effective date of this Order, the Board has considered the comments of Protes- and, neither the acquisition of Bank nor the acquitant. The only comments of Protestant that appear sition of Savings Bank shall be made later than to bear upon factors the Board must consider in three months after the effective date of this Order acting upon applications under sections 3 or 4 of unless such period is extended for good cause by the Act concern his criticism of Applicant's pro- the Board, or by the Federal Reserve Bank of posed management, which will be composed Boston pursuant to delegated authority. The determainly of the principal officers of Bank and Sav- mination as to Applicant's operation of Savings ings Bank. Protestant alleges that Savings Bank's Bank is subject to the conditions set forth in management, which will become an integral part section 225.4(c) of Regulation Y and to the of Applicant, is not satisfactory in view of some Board's authority to require reports by, and make problems involving real estate loans. He also al- examinations of, holding companies and their leges that approval will allow management of subsidiaries and to require such modification or Applicant to have access to the combined sur- termination of the activities of a bank holding pluses, undivided profits and retained earnings of company or any of its subsidiaries as the Board Bank and Savings Bank and allow them to use finds necessary to assure compliance with the such funds to correct errors of management. Al- provisions and purposes of the Act and the Board's though Savings Bank may have experienced prob- regulations and orders issued thereunder, or to lems with a small number of loans, on the basis prevent evasion thereof. of all the facts of record its management must be By order of the Board of Governors, effective regarded as satisfactory. Furthermore, the record November 11, 1975. in this case does not reveal that any of the capital accounts of Bank or Savings Bank have been Voting for this action: Vice Chairman Mitchell and Governors Holland, Wallich, Cold well, and Jackson. dissipated in the past, nor does it appear likely Absent and not voting: Chairman Burns and Governor that such dissipation would occur in the future. Bucher. In any event, the Board has authority under Fed- (Signed) THEODORE E. ALLISON, eral law (12 U.S.C. 1818) to take appropriate [SEAL] Secretary of the Board. action to ensure that bank holding companies cease and desist from engaging in any unsafe or unsound banking practices. SOUTHEAST BANKING CORPORATION, Protestant does not allege that approval of the MIAMI, FLORIDA proposal would result in any significant adverse Order Approving Formation effects upon competition in any relevant area; nor of Bank Holding Company and with respect to Applicant's proposal to acquire Acquisition of Nonbanking Companies Savings Bank, does he allege that operation of a guaranty savings bank in New Hampshire is not Southeast Banking Corporation, Miami, Florida closely related to banking or that no public benefits ("Southeast"), a bank holding company within would result from Applicant's operation of Sav- the meaning of the Bank Holding Company Act, ings Bank. Accordingly, having considered the and its wholly-owned subsidiary, Southeast Acarguments of Protestant, it is the Board's judgment quisition Company, Miami, Florida ("SAC"), that the facts of record do not warrant denial of have applied for the Board's approval under § 3 the applications. of the Bank Holding Company Act (12 U.S.C. On the basis of the foregoing and all of the facts 1842) to acquire all of the voting shares of Palmer of record, the Board has determined that the con- Bank Corporation, Sarasota, Florida ("Palmer"), siderations affecting the competitive factors under as well as 90 per cent or more of the voting shares section 3(c) of the Act and the balance of the of Southeast National Bank of Sarasota, a propublic interest factors the Board must consider posed new bank, into which will be merged Palmer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 Federal Reserve Bulletin • December 1975 » First National Bank and Trust Company of Sara- organizations with deposits in excess of $500 sota, Sarasota, Florida. At the same time, South- million. Furthermore, there would remain 29 other east and SAC have also applied, pursuant to § multibank holding companies in Florida. 4(c)(8) of the Bank Holding Company Act (12 Southeast is represented in most of the principal U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the banking markets in the State of Florida. It operates Board's Regulation Y, to acquire all of the voting bank subsidiaries in two of the four banking marshares of both Palmer Investment Advisory Com- kets in which Palmer has a banking subsidiary. pany, Sarasota, Florida ("PIAC"), and Coastal Those two markets are the Naples banking market3 Mortgage Company, Sarasota, Florida ("CMC"). and the Bradenton banking market.4 The two other PIAC will engage in the activities of acting as an markets in which Palmer operates are the Ft. investment or financial advisor and CMC will Myers banking market5 and the Sarasota banking engage in mortgage banking, including making, market.6 acquiring, and servicing for its own account or Addressing the issue of direct competition, for the account of others, loans and other exten- Palmer operates one banking subsidiary (estabsions of credit. Such activities have been deter- lished in 1974) in the Naples banking market, mined by the Board to be closely related to bank- which controls $8.1 million in deposits or 3.5 per ing (12 CFR 225.4(a)(1), (3) and (5)). cent of market deposits and is the smallest of eight Notice of the receipt of these applications af- banks in the market. Southeast operates the third fording opportunity for interested persons to sub- largest bank in the market with deposits of $24 mit comments and views, has been given in ac- million, controlling 10.4 per cent of market decordance with §§3 and 4 of the Act. The time posits. The two banks are five miles apart. The for filing comments and views has expired, and largest banking organization in the market acthe Board has considered the applications and all counts for 44.4 per cent of deposits, while the comments received, including those of the Comp- second largest banking organization (which is also troller of the Currency, in light of the factors set the second largest in the State) holds 36.5 per cent forth in § 3(c) of the Act (12 U.S.C. 1842(c)), of market deposits. All of the banks in the market and the considerations specified in § 4(c)(8) of the are affiliated with other bank holding companies Act (12 U.S.C. 1843(c)(8)).1 or with a banking group. De novo entry is very Southeast controls 38 banks with aggregate de- unlikely as the population per banking office and posits of $2.4 billion, representing 9.9 per cent personal income per bank office were considerably of commercial bank deposits in Florida, and is the below State averages.7 Consummation of the prolargest banking organization in the State. Palmer, posal would thus eliminate direct competition and the twentieth largest banking organization in increase concentration in the banking market. Florida, controls eight banks with aggregate de- Turning to the Bradenton banking market, posits of $262 million, representing 1.1 per cent Southeast is the third largest banking organization of deposits in commercial banks in the State.2 in the market (out of eight), controlling two bank Upon consummation of the proposed acquisitions, subsidiaries, with approximately 20.8 per cent of Southeast's share of total commercial bank depos- market deposits. Palmer operates one bank in the its would be approximately 11 per cent. The Board market controlling 1.3 per cent of market deposits, is of the view that approval of these acquisitions and is the seventh largest banking organization in would not have significantly adverse effects upon the market. Eleven of the twelve banks competing the concentration of banking resources in Florida in the Bradenton market are affiliated with either since, following consummation, Florida would a bank holding company organization or a banking continue to have eight banking organizations with group. Competing in the market, other than deposits of over $1 billion, and five other banking Southeast and Palmer, are three of the ten largest 3 The Naples banking market is defined as Collier County lrThe applications to acquire Southeast National Bank of minus the outlying town of Immokalee. Sarasota were received November 11, 1975. The Comptroller's 4 The Bradenton banking market is approximated by Manatee comments were received November 13, 1975. No Federal County. Register notice was published as Southeast National Bank of 5The Ft. Myers banking market is defined as all of Lee Sarasota has no significance other than to serve as a vehicle County. to merge Palmer First National Bank as part of the overall 6The Sarasota banking market is defined as the northern transaction on which comments were solicited. portion of Sarasota County and the extreme southern portion 2Unless otherwise indicated, all banking data are as of of Manatee County. December 31, 1974, and reflect bank holding company forma- 7 All population and personal income data per bank office tions and acquisitions approved as of July 31, 1975. are as of June 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 905 banking organizations in the State, including the stances referred to below would have substantial State's second largest. The Bradenton market is adverse effects. marginally attractive with population per bank The financial condition, managerial resources, office and personal income per bank office just and future prospects of Southeast, its subsidiary below Statewide averages. The three largest bank- banks and SAC are regarded as consistent with ing organizations competing in the market are approval. With respect to Palmer and its subsidiapproximately equivalent in size, controlling 25.0, aries, it is the Board's judgment, based upon its 22.5 and 20.8 per cent of market deposits, respec- own examination and analysis, as well as recomtively. Consummation of the proposal would in- mendations of the Comptroller of the Currency, crease Southeast's market share to 22 per cent and that Palmer may be considered a "failing comwould eliminate a banking alternative. pany." Palmer's difficulties arise primarily from With respect to the two banking markets in asset and liquidity problems in its lead bank as which no direct competition would be eliminated, well as serious problems in one of its nonbank the Sarasota and Ft. Myers banking markets, the subsidiaries, Coastal Mortgage Company. The Board, in its analysis of these applications, must problems in Palmer's lead bank stem, in part, from consider whether consummation of the proposal the purchase by that bank at face value of queswould eliminate the possibility of competition de- tionable assets of Coastal Mortgage Company, veloping between these two organizations in the transactions which appear to have violated Section future. In both the Sarasota and Ft. Myers markets, 23A of the Federal Reserve Act (Interpretations Southeast is a possible future competitor of H4110). There are additional problems throughout Palmer. In the case of Sarasota, Palmer is the the Palmer system and Palmer itself is undercapilargest of seven banking organizations in that talized with no apparent source of additional capimarket with a market share of 41 per cent, and tal funds or liquidity. Absent this proposal, failure control over five banks in the market. In the of Palmer appears probable. It further appears that Sarasota market, the two largest organizations hold there are no other organizations in Florida with 73 per cent of deposits and the three largest hold the interest and resources necessary to take over 87 per cent. The Sarasota market is moderately Palmer and, under existing law, holding compaattractive for de novo entry, as it has experienced nies outside Florida are prohibited from acquiring rapid population growth which is expected to con- Palmer. tinue. The Board notes that four banks have en- Upon consummation, Southeast will have artered the market since 1971; however, the market ranged for approximately $20 million in capital appears to remain attractive to de novo entry. funds to be available if needed for Palmer.8 At Thus, it is expected that approval would remove the same time, Palmer's severe managerial defi- Southeast as a possible future competitor in the ciencies will be addressed by Southeast through market. the addition of new officers and managers, and In the Ft. Myers banking market, Palmer has the retention of the more capable personnel in one bank, with deposits of $7.3 million equal to Palmer. Finally, Palmer's problem with its real 1.3 per cent of market deposits. Operating in the estate loans will receive prompt and immediate market are twelve other banking organizations attention by Southeast, which will seek to reduce controlling sixteen banks. Palmer is the eleventh the adverse effect these loans have upon Palmer's largest of the thirteen banking organizations operations. It is the Board's view that, in light operating in the market. The market is charac- of the severe impact that the failure of Palmer terized by rapid growth; however, both personal would have on the communities its banking subincome and population per bank office ratios are sidiaries serve as well as the impact on the econbelow Statewide averages. Acquisition of Palmer omy of Florida as a whole, that the convenience would amount to a foothold entry into the Ft. and needs benefits to be derived from the proposal Myers market by Southeast. clearly outweigh the adverse competitive consid- The likelihood that Palmer would be a probable erations associated with it. future entrant into markets served by Southeast is not great in view of the present financial and managerial capabilities of Palmer, which will be 8 Included in this amount is a loan of up to $10 million described more fully below. It is the Board's view which the FDIC, pursuant to 12 U.S.C. 1823(e), has agreed that the competitive effects resulting from approval to lend to SAC on or before November 30, 1978. Five million dollars will be loaned to SAC upon the effective date of the of these applications in the absence of the circummerger. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 Federal Reserve Bulletin • December 1975 » With respect to the acquisitions of PIAC and or termination of the activities of the holding CMC, those two Palmer subsidiaries will be ac- companies or any of its subsidiaries as the Board quired by SAC directly and Southeast indirectly. finds necessary to assure compliance with the PIAC provides investment advisory services pri- provisions and purposes of the Act and the Board's marily to Palmer's lead subsidiary bank, Palmer regulations and Orders issued thereunder, or to First National. Following consummation, South- prevent evasion thereof. east proposes to liquidate PIAC. By order of the Board of Governors, effective CMC operates out of one office located in Sara- November 17, 1975. sota, Florida, and services the Sarasota area. At Voting for this action: Vice Chairman Mitchell and one time both Southeast Mortgage Company, Governors Bucher, Holland, Wallich, and Coldwell. Southeast's mortgage banking subsidiary, and Absent and not voting: Chairman Burns and Governor CMC originated construction loans and permanent Jackson. loans on multi-family and single-family residential (Signed) THEODORE E. ALLISON, properties in three market areas coinciding with [SEAL] Secretary of the Board. the Sarasota, Bradenton and Naples banking markets. CMC presently originates no mortgages and FEDERAL RESERVE SYSTEM IN THE Palmer presently intends to dissolve CMC and to MATTER OF THE APPLICATION OF place its real estate lending operations back into its bank subsidiaries. Consummation of the pro- MELLON NATIONAL CORPORATION FOR posal would eliminate a slight amount of existing PRIOR APPROVAL OF THE BOARD OF GOVERNORS competition. However, in view of the proposed TO ACQUIRE LOCAL LOAN COMPANY curtailment of CMC's activities and the financial Order Denying Special Permission to Appeal condition of Palmer, it is the Board's judgment that approval of the applications would have no By Order of July 28, 1975, the Board directed substantially adverse effects in any relevant area. that a public hearing be held on the application There is no evidence in the record indicating of Mellon National Corporation, Pittsburgh, that consummation of the proposal would result Pennsylvania, to acquire Local Loan Company, in any undue concentration of resources, unfair Chicago, Illinois, pursuant to section 4(c)(8) of competition, conflicts of interests, unsound bank- the Bank Holding Company Act (12 U.S.C. § ing practices, or other adverse effects upon the 1843(c)(8)) (40 Federal Register 33072). The public interest. Based upon the foregoing and other Board directed that the hearing be conducted in considerations reflected in the record, the Board accordance with its Rules of Practice for Formal has determined that the balance of the public Hearings, 12 CFR § 263. By Order of August 22, interest factors the Board is required to consider 1975, the Board designated the Honorable James regarding the acquisitions of PIAC and CMC W. Mast, Administrative Law Judge, to serve as under § 4(c)(8) is favorable and the applications presiding officer at the aforesaid hearing (40 Fedshould be approved. eral Register 39943). On the basis of the record, the applications to Mr. Anthony R. Martin-Trigona, a participant acquire Palmer, PIAC and CMC are approved for in the aforesaid hearing, has submitted a 4'Petition the reasons summarized above. The acquisitions to the Board," seeking special permission of the of Palmer and its bank subsidiaries shall not be Board, pursuant to 12 CFR § 263.10(e), to appeal made before the thirtieth calendar day following to the Board 4'from the ruling or refusal of the the effective date of this Order; and, neither the Administrative Law Judge to continue the hearings acquisition of Palmer nor the acquisitions of PIAC to the week of December 8, 1975." or CMC shall be made later than three months The rulings of a presiding officer on any motion after the effective date of this Order, unless such may not be appealed to the Board prior to its period is extended for good cause by the Board consideration of the presiding officer's recomor by the Federal Reserve Bank of Atlanta pursuant mended decision, findings, and conclusions, exto delegated authority. The determination as to cept by special permission of the Board (12 CFR PIAC and CMC's activities is subject to the con- § 263.10(e)). The aforesaid hearing is being conditions set forth in § 225.4(c) of Regulation Y ducted in accordance with the Board's Rules and and to the Board's authority to require reports by, with applicable provisions of law, including the and make examinations of, holding companies and Administrative Procedure Act (5 U.S.C. § 551 et their subsidiaries and to require such modification seq.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 907 The Administrative Procedure Act provides that he shall have the power "[t]o regulate the course "[s]ubject to published rules of the agency and of the hearing and the conduct of the parties and within its powers, employees presiding at hearings their counsel." 12 CFR § 263.6(b). It thus appears may— . . . (5) regulate the course of the hearing that the ruling from which Petitioner seeks special . . . [and] (7) dispose of procedural requests or permission to appeal is a ruling on a matter that similar matters." 5 U.S.C. § 556(c)(5)&(7). The is committed to the presiding officer's discretion Board's Rules of Practice for Formal Hearings by both law and regulation. Accordingly, the likewise grant to the presiding officer full discre- Board has determined that Petitioner's request for tion to regulate the course of the hearing by special permission to appeal a ruling of the preproviding that he may "change the time or place siding officer should be and it hereby is, denied. for beginning such hearing and may continue or By order of the Board of Governors, November adjourn a hearing from time to time or from place 18, 1975. to place." 12 CFR § 263.6(f). The Board's Rules Voting for this action: Vice Chairman Mitchell and also provide that the presiding officer "shall have Governors Bucher, Holland, Wallich, Coldwell, and complete charge of the hearing . . . and ... the Jackson. Absent and not voting: Chairman Burns. duty . .. to take all necessary action to avoid (Signed) THEODORE E. ALLISON, delay in the disposition of proceedings" and that [SEAL] Secretary of the Board. O R D E RS A P P R O V ED UNDER T HE BANK H O L D I NG C O M P A NY A C T- BY T HE B O A RD OF G O V E R N O RS During November 1975, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. SECTION 3 Board action Federal (effective Register Applicant Bank(s) date) citation Central National Cavalier Central Bank 11/21/75 40 F.R. 55721 Corporation, Richmond, & Trust Company, 12/1/75 Virginia Hopewell, Virginia Miami Agency, Inc., The Miami County Nation- 11/28/75 40 F.R. 56983 Shawnee Mission, al Bank of Paola, 12/5/75 Kansas Paola, Kansas New Mexico Bancorpor- Fidelity National Bank, 11/11/75 40 F.R. 53317 ation, Inc., Santa Albuquerque, New 11/17/75 Fe, New Mexico Mexico Spring view Bancorpor- The First National 11/10/75 40 F.R. 53317 ation, Springview, Bank of Springview, 11/17/75 Nebraska Nebraska Park Capital Corp., Bank of La Grange 11/28/75 40 F.R. 57247 La Grange Park, Park, La Grange, 12/8/75 Illinois Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 Federal Reserve Bulletin • December 1975 » SECTIONS 3 AND 4 Nonbanking Federal company Effective Register Applicant Bank(s) (or activity) date citation Stanley Bancshares, The State Stanley Insurers, 11/13/75 40 F.R. 53628 Inc., Stanley, Bank of Inc., Stanley, 11/19/75 Kansas Stanley, Kansas Stanley, Kansas SECTION 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation First Community Bancor- Sale of insurance 11/26/75 40 F.R. poration, Joplin, Missouri ORDER APPROVED UNDER BANK MERGER ACT Board action Federal (effective Register Applicant Bank(s) date) citation Manufacturers and Traders First Empire Bank— 11/26/75 40 F.R. 54625 Trust Company, Buffalo, New York, New York, 11/25/75 New York New York BY FEDERAL RESERVE BANKS During October or November 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 are available upon request to the Reserve Bank. SECTION 3 Federal Reserve Effective Register Applicant Bank(s) Bank date citation First Banc Group of Ohio, The Citizens Cleveland 10/28/75 40 F.R. 52765 Inc., Columbus, Ohio Bank & Trust 11/12/75 Company, Wadsworth, Ohio Security BancShares of Big Horn Minneapolis 11/12/75 40 F.R. 54424 Montana, Inc., Hardin, County State 11/24/75 Montana Bank, Hardin, Montana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 909 SECTIONS 3 AND 4 Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Annawan Investment The State to engage in Chicago 11/17/75 40 F.R. 55719 Company, Annawan, Bank of general insur- 12/1/75 Illinois Annawan, ance agency Annawan, activities Illinois PENDING CASE S INVOLVING THE BOARD OF GOVERNORS* Harlan National Co. v. Board of Governors, filed November 1975, U.S.C.A. for the Eighth Circuit. Peter E. Blum v. Morgan Guaranty Trust Co., et al., filed October 1975, U.S.D.C. for the Northern District of Georgia. A.R. Martin-Trigona v. Board of Governors, et al., filed September 1975, U.S.D.C. for the Northern District of Illinois. A.R. Martin-Trigona v. Board of Governors, et al., filed September 1975, U.S.D.C. for the Northern District of Illinois. Reserve Enterprises, Inc. v. Arthur F. Burns, et al., filed September 1975, U.S.D.C. for the District of Minnesota. Logan v. Secretary of State, et al., filed September 1975, U.S.D.C. for the District of Columbia. Ellsworth v. Burns, filed September 1975, U.S.D.C. for the District of Arizona. Florida Association of Insurance Agents, Inc. v. Board of Governors and National Association of Insurance Agents, Inc. v. Board of Governors, filed August 1975, actions consolidated in U.S.C. A. for the Fifth Circuit. HenryM. Smithy. National State Bank of Boulder, etal., filed June 1975, U.S.D.C. for the Northern District of Texas. Bank of Boulder v. Board of Governors, et al., filed June 1975, U.S.C.A. for the Tenth Circuit, tDavid R. Merrill, et al. v. Federal Open Market Committee of the Federal Reserve System, filed May 1975, U.S.D.C. for the District of Columbia. Curvin J. Trone v. United States, filed April 1975, U.S. Court of Claims. Richard S. Kaye v. Arthur F. Burns, et al., filed April 1975, U.S.D.C. for the Southern District of New York. Louis J. Roussel v. Board of Governors, filed April 1975, U.S.D.C. for the Eastern District of Louisiana. **Cook, et al. v. Board of Governors, filed March 1975, U.S.D.C. for the District of Columbia, appeal pending, U.S.C.A. for the District of Columbia Circuit. **Purolator Courier Corporation v. Board of Governors, filed December 1974, U.S.C. A. for the District of Columbia Circuit. **Tri-State Bancorporation, Inc. v. Board of Governors, filed November 1974, U.S.C.A. for the Seventh Circuit, petition for reconsideration filed. *This list of pending cases does not include suits against Federal Reserve Banks in which the Board of Governors is not named as a party. **Decisions have been handed down in these cases, subject to appeals noted. tThe Board of Governors is not named as a party in this action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 Federal Reserve Bulletin • December 1975 » PENDING CASES INVOLVING THE BOARD OF GOVERNORS*—CONTINUED Georgia Association of Insurance Agents, et al. v. Board of Governors, filed October 1974, U.S.C. A. for the Fifth Circuit. Alabama Association of Insurance Agents, et al. v. Board of Governors, filed July 1974, U.S.C. A. for the Fifth Circuit. **Investment Company Institute v. Board of Governors, dismissed July 1975, U.S.D.C. for the District of Columbia; appeal pending, U.S.C.A. for the District of Columbia Circuit. George Brice, Jr., et al. v. Board of Governors, filed April 1974, U.S.C.A. for the Ninth Circuit. **National Automobile Dealers Association, Inc. v. Board of Governors, filed April 1974, U.S.C. A. for the District of Columbia Circuit. East Lansing State Bank v. Board of Governors, filed December 1973, U.S.C.A. for the Sixth Circuit. **Independent Bankers Association of America, Inc. v. Board of Governors and National Courier Association, et al. v. Board of Governors, filed December 1973, U.S.C.A. for the District of Columbia Circuit. **Iowa Independent Bankers v. Board of Governors, filed September 1973, U.S.C.A. for the District of Columbia Circuit, petition for certiorari filed. **Consumers Union of the United States, Inc., et al. v. Board of Governors, filed September 1973, U.S.D.C. for the District of Columbia. Bankers Trust New York Corporation v. Board of Governors, filed May 1973, U.S.C.A. for the Second Circuit. *This list of pending cases does not include suits against Federal Reserve Banks in which the Board of Governors is not named as a party. ••Decisions have been handed down in these cases, subject to appeals noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

911 Announcements RESIGNATION OF consumers, notably those with financial MR. BUCHER AS MEMBER problems, have benefited greatly from the insight and expertise that you brought to OF THE BOARD OF GOVERNORS your office. Jeffrey M. Bucher, a Member of the Board of Your return to private life provides me Governors of the Federal Reserve System, has with an opportunity to express my personal gratitude for your public service and to exannounced his resignation from the Board, effectend my very best wishes for success and tive January 2, 1976. happiness in all your future undertakings. Governor Bucher's letter of resignation to Pres- Sincerely, ident Ford and the President's letter of acceptance follow: Gerald R. Ford October 28, 1975 Dear Mr. President: AMENDMENT TO REGULATION Y I hereby tender my resignation as a Member of the Board of Governors of the Federal The Board of Governors on November 24, 1975, Reserve System, effective as of the close of amended its Regulation Y—Bank Holding Combusiness January 2, 1976, or such earlier date as may suit your convenience. panies—to provide for the registration of bank holding companies and certain of their subsidiaries My decision to resign was an extremely that act as transfer agents. difficult one. To serve as a Member of the Board has been both a rare privilege and an The action was taken pursuant to the Securities enjoyable experience. Acts Amendments of 1975 requiring that after December 1, 1975, banks, bank holding compa- Having benefited so greatly from the wealth of knowledge this opportunity has nies, and subsidiaries of bank holding companies afforded me, I would like to believe that my may act as transfer agents with respect to covered service on the Board has, in some way, securities only if they are registered with their contributed to the welfare of our country. Federal supervisory authority. Sincerely yours, The Board on October 22, L975, amended its Regulation H—Membership of State Banking In- Jeffrey M. Bucher stitutions in the Federal Reserve System—to provide for such registration by State member banks. The new action includes bank holding companies THE WHITE HOUSE and their subsidiaries that are not banks within the WASHINGTON meaning of the Bank Holding Company Act but November 24, 1975 are banks as defined in the Securities Exchange Act of 1934. The Securities and Exchange Com- Dear Governor Bucher: mission, which has primary jurisdiction under the It is with deep regret that I accept your new Act over nonbank transfer agents, has indiresignation as a Member of the Board of cated that institutions that are banks under the SEC Governors of the Federal Reserve System, law but not under the bank holding company law effective January 2, 1976, as you requested. should register with the Board if they are transfer During your service of more than three agents. years on the Board of Governors, you have Institutions covered by the amendment of Regcontributed to many areas of the Board's ulation Y will use the same registration and rework, but I would like to express my special appreciation of your accomplishments in the porting forms as are required for transfer agents area of consumer protection. Our Nation's under Regulation H. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 Federal Reserve Bulletin • December 1975 » REGULATION Z INTERPRETATION FDIC and the Comptroller are issuing similar announcements. The Board of Governors on November 21, 1975, As a consequence of the postponement, the issued an interpretation of its Truth in Lending year-end 1975 report of condition and the 1975 regulation that applies to disclosure of finance income statement for State member banks will be charges containing only one component. in the current formats. The schedule of the matu- In such cases, the creditor need not identify the rity distribution of investment security holdings single component beyond the description of "fi- (Schedule B), which has been reported in recent nance charge." Where more than one component years only for June 30, will also be required for is involved, however, creditors must provide the the 1975 year-end statement. amount of each component (such as interest, credit The postponement of the revisions was made report fees, or service charges). in light of extensive and constructive comments received from banks. The revisions affect both the universal condition and income statements to be GLOSSARY OF WEEKLY filed by all banks and the proposed large bank FEDERAL RESERVE STATEMENTS supplements to these reports. The deferment gives banks more time to prepare for the new reporting A new publication that provides a line-by-line requirements and gives regulatory agencies addiexplanation of the terms appearing in the major tional time to take account of the comments reweekly banking statistical releases of the Board ceived. of Governors has been published by the Federal The postponements will not change the main Reserve Bank of New York. The publication thrust of the proposals, but the final version of combines in a 56-page annotated volume the rethe reports, particularly of the large bank supplevised contents of two previously issued reference ments, are expected to contain modifications to the booklets. original proposals. The agencies will announce the The publication entitled Glossary: Weekly Fedcontents of the final version of the universal reports eral Reserve Statements covers the following of condition and income in mid-December and will weekly releases—Factors Affecting Bank Reissue detailed forms, instructions, and definitions serves, H.4.1; Consolidated Statement of Condifor them early in January. tion of All Federal Reserve Banks, H.4.1(a); In the preparation of the final form of the large Weekly Condition Report of Large Commercial bank supplements, the agencies are giving careful Banks, H.4.2; Weekly Summary of Banking and study to comment received and will also meet with Credit Measures, H.9; and Basic Reserve Position a panel of bankers that the Bank Administration data for eight large New York City banks (pub- Institute will be asked to designate. A revised lished by the Federal Reserve Bank of New York). version of the large bank supplements and detailed The Glossary is available without charge from instructions for them will be issued as soon in 1976 the Public Information Department, Federal Reas possible. serve Bank of New York, 33 Liberty Street, New York, New York 10045. AMENDMENTS TO REGULATION Q POSTPONEMENT OF REVISED The Board of Governors on December 4, 1975, amended its Regulation Q—Interest on Depos- CONDITION AND INCOME REPORTS its—to facilitate the establishment by eligible in- The Board of Governors, together with the other dividuals of Individual Retirement Accounts Federal bank regulatory agencies, on December (IRA). 3, 1975, postponed the effective date for imple- The Employee Retirement Income Security Act menting revised condition and income reports re- of 1974 permits individuals not covered by a quired of banks under their supervision. retirement plan to deposit up to $1,500 a year or The revisions as proposed were published for 15 per cent of gross income, whichever is less, comment on October 1, at which time the date in special tax-deferred retirement accounts. On of implementation was to be December 31, 1975. June 26, 1975, the Board invited public comment The Federal Reserve Board, the Federal Deposit on a number of questions relating to IRA's, and Insurance Corporation, and the Comptroller of the the current action was taken in light of comment Currency have agreed to defer the initial filing of received. The amendments, effective immediately, the revised reports until March 31, 1976. The are as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 913 1. Member banks may pay all, or a por- LETTER RE: Restrictive tion, of an IRA time deposit prior to its foreign trade practices maturity, without penalty for early withdrawal, when the individual for whose benefit the account is established is 59 Vi years The Board of Governors on December 16, 1975, of age or more, or becomes disabled. urged member commercial banks to avoid in- 2. Member banks may waive, for the volvement in restrictive foreign trade practices that purposes of IRA accounts, the $1,000 mini- discriminate against U.S. citizens or that accommum required for time deposits with 4- to modate boycotts against friendly foreign nations. 6-year maturities. Board Chairman Arthur F. Burns stated that the Board's announcement followed a presidential re- The first amendment would permit a depositor quest for a comprehensive response on the part who had established—say—a 5-year deposit, to of the Federal Government to any discrimination make withdrawals from it without penalty before against American citizens or firms that might arise the end of 5 years if the depositor becomes 59x/2 from foreign boycott practices. Burns urged all years of age, or becomes disabled. Regulation Q member banks to abide by both the letter and the normally requires a penalty in the form of a loss spirit of the policy set forth. of interest when time deposits are withdrawn be- The Board's policy was spelled out in a letter fore maturity. This amendment gives full effect sent to the 12 Federal Reserve Banks for transmitto the provision of the IRA statute authorizing tal to approximately 5,800 commercial banks that withdrawal from IRA accounts when the depositor are members of the Federal Reserve System. attains the age of 5 9 or is disabled. Regulation In voicing strong support of the President's Q already provides that early withdrawals may be recent statement against the involvement of U.S. made from time deposits without penalty in the firms in foreign boycotts the Board said: case of death of the depositor. As a result of this amendment, member banks The participation of a U.S. bank, even may distribute the proceeds of an IRA account in passively, in efforts by foreign nationals to a single payment, without penalty, when the dis- effect boycotts against other foreign countribution is made in conformance with the IRA tries friendly to the United States—particuagreement between the bank and the depositor. Or, larly where such boycott efforts may cause member banks may establish IRA's from which discrimination against United States citizens periodic, annuity-like payments may be made, or businesses—is, in the Board's view, a with no reduction in the rate of interest paid. misuse of the privileges and benefits con- The second amendment to Regulation Q permits ferred upon banking institutions. l member banks to pay the lA per cent interest available for 4-year time deposits, or the IV2 per One specific abuse, the Board said, is the praccent interest available for 6-year deposits, without tice of some U.S. banks of participating in the requiring the usual minimum of $1,000, since issuance of letters of credit containing provisions some depositors may not have such a sum initially. intended to further a boycott against a foreign The Board believes this amendment serves the country friendly to the United States. intent of the Congress in the IRA statute to en- One such provision is a requirement that the courage individuals to save for retirement. exporter provide a certificate attesting that the firm In order to obtain the tax deferral benefits of is not connected in any way with a country or an IRA account for the year 1975, depositors must firm being boycotted by the importer's home have established IRA agreements by December 31, country. The Board noted that such conditions go 1975. beyond normal commercial protections, and may IRA's already in existence may be amended to have a discriminatory impact upon U.S. citizens incorporate the new changes, which apply solely or firms that are not themselves the object of the to IRA accounts. boycott. The Board is continuing to examine another Although arrangements of this type originate question raised in its June 26 request for comment: with the foreign importer who arranges a letter l whether elimination of the A of a per cent dif- of credit, the Board said U.S. banks that agree ferential in interest rate ceilings that now prevails, to honor such conditions may be viewed as parfor time deposits, between commercial banks and ticipants in a boycott that contravenes U.S. policy thrift institutions is appropriate in the case of as announced by the President and as set forth long-term IRA accounts. in the Export Administration Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Federal Reserve Bulletin • December 1975 » The Board also stated in its letter that an agree- United States—particularly where such boycott efforts may cause discrimination against ment by a U.S. bank to observe such discrim- United States citizens or businesses—is, in inating conditions in a letter of credit may constithe Board's view, a misuse of the privileges tute a direct violation of the Federal antitrust laws and benefits conferred upon banking instituor of applicable State anti-boycott laws. tions. A copy of the Board's letter in this matter One specific abuse that has been called follows: to the attention of the Board of Governors is the practice of certain U.S. banks of December 12, 1975 participating in the issuance of letters of credit containing provisions intended to fur- TO: THE PRESIDENTS OF ALL ther a boycott against a foreign country FEDERAL RESERVE BANKS friendly to the United States. The practice AND THE OFFICERS IN appears to have arisen in commercial transactions between U.S. exporters and foreign CHARGE OF BRANCHES importers, in which the importer has ar- On November 20, 1975, the President ranged for the issuance of a bank letter of announced a number of actions intended to credit as a means of making payment to the provide a comprehensive response on the exporter for the goods he has shipped. In part of the Federal Government to any dis- some cases the importer has required, as one crimination against American citizens or of the conditions that must be satisfied before firms that might arise from foreign boycott payment can be made by the U.S. bank to practices. Two elements of the President's the exporter, that the exporter provide a announcement relate to the possible in- certificate attesting that it is not connected volvement of commercial banks in such in any way with a country or firm being practices: boycotted by the importer's home country, or is otherwise in compliance with the terms First, the President has directed the Sec- of such a boycott. Such provisions go well retary of Commerce to amend regulations beyond the normal commercial conditions of under the Export Administration Act to pro- letters of credit, and cannot be justified as hibit U.S. exporters and "related service a means of protecting the exported goods organizations" from answering or comply- from seizure by a belligerent country. ing in any way with boycott requests that Moreover, by creating a discriminatory imwould cause discrimination against U.S. pact upon U.S. citizens or firms who are not citizens or firms on the basis of race, color, themselves the object of the boycott such religion, sex, or national origin. The term provisions may be highly objectionable as "related service organizations" is defined to a "secondary" boycott. include banks. Accordingly, banks that become involved in a boycott request related While such discriminatory conditions to an export transaction from the United originate with and are imposed at the direc- States will be required to report any such tion of the foreign importer who arranges involvement directly to the Department of for the letter of credit, U.S. banks that agree Commerce. to honor such conditions may be viewed as giving effect to, and thereby becoming par- Second, the President has encouraged the ticipants in, the boycott. The Board believes Board of Governors and the other Federal that even this limited participation by U.S. financial regulatory agencies to issue statebanks in a boycott contravenes the policy ments to financial institutions within their of the United States, as announced by the respective jurisdictions emphasizing that President and as set forth by the Congress discriminatory banking practices or policies in the following declaration in the Export based upon race or religious belief of any Administration Act of 1969 (50 U.S.C. customer, stockholder, employee, officer, or App. §2402(5)): director are incompatible with the public service function of banking institutions in this country. It is the policy of the United States (A) to oppose restrictive trade prac- The Board of Governors strongly supports tices or boycotts fostered or imposed the President's statement in this regard. by foreign countries against other Banking is clearly a business affected with countries friendly to the United States, a public interest. Banking institutions and (B) to encourage and request dooperate under public franchises, they enjoy mestic concerns engaged in the export a measure of governmental protection from of articles, materials, supplies, or incompetition, and they are the recipients of formation, to refuse to take any action, important Government benefits. The partici- including the furnishing of information pation of a U.S. bank, even passively, in or the signing of agreements, which efforts by foreign nationals to effect boycotts has the effect of furthering or supportagainst other foreign countries friendly to the ing the restrictive trade practices or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 915 boycotts fostered or imposed by any banks in your district of the Board's views foreign country against another coun- on this matter, and, in particular, to encourtry friendly to the United States. age them to refuse participation in letters of credit that embody conditions the enforcement of which may give effect to a boycott The Board also notes that the agreement by against a friendly foreign nation or may a U.S. bank to observe such discriminatory cause discrimination against U.S. citizens or conditions in a letter of credit may constitute firms. a direct violation of the Federal antitrust laws or of applicable State anti-boycott laws. Very truly yours, Theodore E. Allison You are requested to inform member Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 Industrial Production Released for publication December 15 as the earlier rapid increases in the textile, paper, and chemical group slowed considerably in No- Industrial production increased by an estimated 0.2 vember. per cent in November, about half the October gain. Although increases in output were fairly widespread during November, they generally were the INDUSTRIAL PRODUCTION smallest since the turnaround in the total index Seasonally adjusted, ratio scale, 1967-100 last spring. The index has now risen for seven consecutive months and at 116.8 per cent of the 1967 average was 6.3 per cent above the April low. Auto assemblies in November edged down slightly to an annual rate of 7.7 million units, and schedules call for about the same production levels for December. Output of other durable consumer goods, which had declined in October, recovered in November. Production of nondurable consumer goods edged up slightly further. Total output of business equipment has changed little since September and in November was only 1 l/z per cent above the June-July low and 12.5 per cent below last year's peak. Output of construction products increased, but other intermediate products were unchanged. Production of durable goods materials changed little, as a small decline in steel was offset by increases in other durable materials. Output of F.R. indexes, seasonally adjusted. Latest figures: November. nondurable goods materials rose slightly further, *Auto sales and stocks include imports. Seasonally adjusted 1967 = 100 PPeerr cceenntt cchhaannggeess ffrroomm—— IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1975 Aug. Sept. Oct." Nov.'' Month Year Q2 to ago ago Q3 Total 114.2 116.1 116.6 116.8 .2 -4.0 3.4 Products, total 115.8 116.7 116.9 117.1 .2 -3.5 2.1 Final products 115.9 116.7 116.9 117.1 .2 -3.1 2.2 Consumer goods 125.7 126.5 127.2 127.4 .2 .9 3.7 Durable goods 116.1 117.5 117.9 118.4 .4 -1.1 5.4 Nondurable goods 129.4 129.8 130.7 130.9 .2 1.6 3.1 Business equipment 114.9 115.9 115.5 115.7 .2 -11.7 .1 Intermediate products 115.4 116.7 117.0 117.3 .3 -4.6 2.3 Construction products 109.3 111.8 111.3 112.0 .6 -7.7 1.4 Materials U1.5 115.4 116.2 116.4 .2 -4.7 5.5 pPreliminary. ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS A 98 TABULAR PRESENTATION: A 32 Federal finance GUIDE A 34 U.S. Government securities A 37 Federally sponsored credit agencies A 98 STATISTICAL RELEASES: A 38 Security issues REFERENCE A 41 Business finance A 42 Real estate credit U.S. STATISTICS A 45 Consumer credit A 48 Industrial production A 2 Member bank reserves, Reserve Bank A 50 Business activity credit, and related items A 50 Construction A 5 Federal funds—Money market banks A 52 Labor force, employment, and A 6 Reserve Bank interest rates unemployment A 7 Reserve requirements A 8 Maximum interest rates; margin A 53 Consumer prices requirements A 53 Wholesale prices A 9 Open market account A 54 National product and income A 10 Federal Reserve Banks A 56 Flow of funds A 11 Bank debits A 12 Money stock INTERNATIONAL STATISTICS A 13 Bank reserves; bank credit A 14 Commercial banks, by classes A 58 U.S. balance of payments A 18 Weekly reporting banks A 59 Foreign trade A 23 Business loans of banks A 59 U.S. reserve assets A 24 Demand deposit ownership A 60 Gold reserves of central banks and A 25 Loan sales by banks governments A 25 Open market paper A 61 International capital transactions of the United States A 26 Interest rates A 74 Open market rates A 29 Security markets A 75 Central bank rates A 29 Stock market credit A 75 Foreign exchange rates A 30 Savings institutions TABLES PUBLISHED PERIODICALLY A 76 Sales, revenue, profits, and dividends of large manufacturing corporations A 86 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 BANK RESERVES AND RELATED ITEMS • DECEMBER 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 F.R. account stand- Total out- repur- assets4 ing right 2 chase agreement Averages of daily figures 1939—Dec 2,510 2,510 83 2,612 17,518 2,956 1941—Dec 2,219 2,219 170 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—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—De c 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—De c 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—De c 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—No v 84,052 83,395 657 1,285 2,409 3,171 91,302 11,567 400 9,113 Dec 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—Ja n 86,039 85,369 670 390 2,456 3,391 93,002 11,647 400 9,235 M Fe a b r 8 8 4 4 , , 8 7 4 4 7 4 8 8 4 3 , , 3 84 9 3 8 9 4 0 4 1 9 1 1 4 0 7 6 2 1 , , 0 9 7 9 9 4 3 3 , , 1 4 4 1 2 9 9 90 1 , , 8 1 1 6 9 8 1111,,662260 4 4 0 0 0 0 9 9 , , 2 3 8 6 4 2 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 1,877 039 97,845 11,620 429 9,464 June 88,912 87,618 1,294 271 2,046 098 95,119 11,620 500 9,536 July 88,166 87,882 284 261 1,911 100 94,144 11,620 500 9,616 Aug 86,829 86,348 481 211 1,691 953 92,395 11,604 500 9,721 Sept 89,191 87,531 1,660 396 1,823 060 95,277 11,599 500 r9,797 Oct.?' 90,476 89,547 929 192 1,954 521 96,941 11,599 500 9,877 Nov.® 90,934 89,560 1,374 62 2,546 481 97,884 11,599 500 10,010 Week ending— 1975—Sept. 3 88,224 86,708 1 ,516 222 1 ,548 2,973 93,814 11,599 500 9,801 10 86,653 86,653 385 2,036 3,000 92,736 11.598 500 9,765 17 87,286 86,466 820 327 1,854 3,097 93,269 11.599 500 9,789 24 90,530 88,373 2,157 395 2,027 3,062 96,874 11,599 500 9,811 Oct. 1 93,192 89,312 3,880 581 1,620 3,145 99,535 11,599 500 9,836 8 90,561 89,392 1,169 239 1,645 3,348 96,657 11,599 500 9,857 15 88,782 88,782 172 2,029 3,452 95,144 11,599 500 9,873 22* 89,674 88,949 725 233 2,171 3,578 96,407 11,599 500 9,887 29* 92,027 90,717 1,310 95 1,823 3,666 98,428 11,599 500 9,893 Nov. 5* 92,251 89,755 2,496 67 2,248 3,714 99,280 11,599 500 9,909 1129** 9 8 0 7 , , 1 9 1 1 6 1 8 8 7 9 , , 4 4 4 6 9 5 4 6 6 5 2 1 4 5 0 9 2 2 , , 2 8 8 7 9 6 3 3 , , 7 4 5 7 2 4 9 97 4 , , 3 7 2 5 1 0 1 11 1 , , 5 5 9 9 9 9 5 5 0 0 0 0 1 9 0 , , 9 0 5 4 5 9 26* 92,992 90,992 2,000 74 2,302 3,116 99,401 11,599 500 10,061 End of month 1975—Sept 93,080 89,715 3,365 283 891 3,259 98,461 11,599 500 9,934 Oct.* 93,426 90,324 3,102 73 1,339 3,939 99,824 11.599 500 9,906 Nov.* 91,209 91,209 46 2,962 3,252 98,196 11,599 500 10,077 Wednesday 1975—Sept. 3 89,037 86,647 2,390 208 1,732 2,915 94,799 11,599 500 9,738 10 85,234 85,234 1 ,695 2,576 3,123 93,280 11,599 500 9,776 17 85,206 85,206 338 2,837 3,075 92,107 11,599 500 9,795 24 93,289 88,656 4,633 1,402 2,406 3,048 101,019 11,599 500 9,819 Oct. 1 92,963 89,660 3,303 615 2,685 3,246 100,446 11,599 500 9,819 8 87,150 87,150 156 2,435 3,386 93,830 11,599 500 9,858 15 87,772 87,772 481 3,172 3,620 95,743 11,599 500 9,882 22* 91,633 89,120 2,513 941 2,421 3,663 99,522 11,599 500 9,893 29* 93,366 90,317 3,049 98 1,796 3,675 99,832 11,599 500 9,893 Nov. 5* 85,676 85,022 654 52 2,862 3,723 93,289 11,599 500 9,916 12* 90,976 87,737 3,239 70 3,322 3,803 99,051 11,599 500 10,033 19*.. 91,967 90,372 1,595 92 2,939 3,082 99,017 11,599 500 10,056 26* 96,041 90,956 5,085 184 2,275 3,221 102,844 11,599 500 10,068 1 Includes Federal agency issues held under repurchase agreements 4 Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R. beginning Dec. 1, 1966, and Federal agency issues bought outright be- liabilities and capital" are shown separately; formerly, they were netted ginning Sept. 29, 1971. together and reported as "Other F.R. accounts." 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. 5 Includes industrial loans and acceptances until Aug. 21, 1959, when Govt, securities pledged with F.R. Banks, and excludes (if any), securities industrial loan program was discontinued. For holdings of acceptances sold and scheduled to be bought back under matched sale-purchase on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10. transactions. See also note 3. 3 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 BULLETIN, p. 164. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Deposits, other than member bank Member bank reserves reserves with F.R. Banks Period or date With Cur- F.R. rency Banks and coin7 Averages of daily figures 11,473 11,473 .1939—Dec. 12,812 12,812 . 1941—Dec. 16,027 16,027 . 1945—Dec. 17,391 17,391 .1950—Dec. 16,688 2,595 19,283 .1960—Dec. 2,192 23,071 4,960 28,031 .1969—Dec. 2.265 23,925 5,340 29,265 .1970—Dec. 2,287 25,653 5,676 31,329 .1971—Dec. 2,362 24,830 6,095 31,353 . 1972—Dec. 2,942 28,352 6,635 35,068 . 1973—Dec. 302 864 370 770 3,149 29,898 6,939 36,837 . 1974—Nov. 220 1,741 357 874 3.266 29,767 7,174 36,941 Dec. 221 2,087 336 884 3,264 29,713 7,779 37,492 1975—Jan. 236 2,374 317 711 3,358 28,503 7,062 35,565 Feb. 277 1,887 363 958 3,076 27,948 6,831 34,779 Mar. 309 3,532 307 718 3,137 28,264 6,870 35,134 Apr. 326 8,115 262 746 3,231 27,576 6,916 34,492 May 355 3,353 272 989 3,191 28,007 6,969 34,976 June 358 2,207 269 711 3,135 27,442 7,213 34,655 July 368 818 274 660 3,096 27,183 7,299 34,482 Aug. r362 3,415 308 798 3,169 27,215 7,431 34.646 Sept. 387 4,940 271 632 3,208 27,264 7.319 34,583 Oct. p 415 4,333 297 649 3,276 27,282 7,365 34.647 NOV.P Week ending— 363 1,806 300 839 3,253 27,173 7,356 34,529 . 1975—Sept. 3 359 1,402 351 840 2,913 26,493 7,605 34,098 10 354 1,181 326 946 3,069 27,116 7,436 34,552 17 364 5,032 285 717 3,256 27,442 7,175 34,617 24 374 7,413 277 650 3,463 27,883 7,561 35,444 .Oct. 1 371 5,863 235 570 3,044 26,678 7,582 34,260 3 3 8 8 2 1 3 3 , ,0 5 9 7 1 5 2 3 4 4 5 0 6 65 1 6 7 3 3 , , 0 22 9 1 1 2 27 7 , , 8 0 6 3 4 6 6 7 , , 7 61 4 8 1 3 3 4 4 , , 6 6 5 0 4 5 ..2152 * 370 6,148 265 664 3,375 27,483 7,246 34,729 29 p 412 6,755 288 652 3,382 27,397 7,515 34,912 .Nov. 5* 427 2,868 273 583 3,109 26,086 7,704 33,790 12* 410 3,321 315 566 3,202 27,634 7,117 34,751 19* 400 5,010 277 635 3,385 27,678 7,046 34,724 26 p End of month 390 8,075 324 616 3,472 25,913 7,561 33,474 . 1975—Sept. 370 8,517 297 594 3,498 26,352 7,515 33,867 Oct. * 400 4,919 347 3,403 25,864 7,575 33,439 Nov.f Wednesday 363 804 247 868 2,913 29,096 7,356 36,452 .1975—Sept. 3 357 405 295 1,036 2,949 27,623 7,605 35,228 10 346 2,421 242 854 3,060 24,908 7,436 32,344 17 356 7,249 234 660 3,381 29,363 7,175 36,538 24 383 7,637 283 824 3,417 28,149 7,561 35,710 . Oct. 1 374 3,691 234 568 3,046 25,449 7,582 33,031 384 2,703 877 642 3,129 27,114 7,618 34,732 .15 384 6,074 214 817 3,317 28,241 6,741 34,982 .22* 370 6,124 236 594 3,446 28,688 7,246 35,934 .29 p 426 3,066 355 692 3,063 24,701 7,515 32,216 .Nov. 5 p 421 2,577 222 642 3,115 30,059 7,704 37,763 12* 424 4,175 244 566 3,325 28,210 7,117 35,327 19* 400 4,327 324 978 3,455 30,855 7,046 37,901 26* 6 Includes certain deposits of domestic nonmember banks and foreign- averages. Beginning Sept. 12, 1968, amount is based on close-of-business owned banking institutions held with member banks and redeposited in figures for reserve period 2 weeks previous to report date. full with F.R. Banks in connection with voluntary participation by non- 8 Beginning with week ending Nov. 15, 1972, includes $450 million of member institutions in the Federal Reserve System's program of credit reserve deficiencies on which F.R. Banks are allowed to waive penalties restraint. for a transition period in connection with bank adaptation to Regulation J As of Dec. 12, 1974, the amount of voluntary nonmember and foreign as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies agency and branch deposits at F.R. Banks that are associated with margi- included are (beginning with first statement week of quarter): Ql, $279 nal reserves are no longer reported. However, deposits voluntarily held million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning by agencies and branches of foreign banks operating in the United States 1974, Ql, $67 million, Q2, $58 million. Transition period ended after as reserves and Euro-dollar liabilities are reported. second quarter, 1974. ? Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed thereafter. Beginning Jan. 1963, figures are estimated except for weekly For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS • DECEMBER 1975 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re- Excess1 Total Sea- Borrow- Excess Borrow- Excess Borrow- Excess Borrowheld1 quired sonal ings ings ings ings 1939—Dec 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec 12,812 9,422 3,390 5 989 295 1,303 1 804 4 1945—Dec 16,027 14,536 1,491 334 48 192 14 418 96 1,011 46 1950—Dec 17,391 16,364 1,027 142 125 58 8 232 50 663 29 1960—Dec 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—De c 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—No v 36,837 36,579 258 1,285 67 257 38 14 90 566 138 448 Dec 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—Ja n 37,492 37,556 -64 390 13 -119 156 -16 16 -91 87 162 131 Feb 35,565 35,333 232 147 10 31 37 17 10 41 29 143 71 A M p a r r 3 3 4 5 , , 7 1 7 3 9 4 3 3 5 4 , , 0 5 1 1 4 3 2 1 6 2 6 0 1 1 0 1 6 0 7 7 5 3 3 2 2 2 5 2 -2 2 3 0 1 1 4 0 -4 5 6 2 3 8 8 1 1 3 1 7 5 4 3 6 3 May 34,492 34,493 60 9 -28 24 -21 -89 13 137 23 June 34,976 34,428 548 271 11 142 90 47 2 217 114 142 65 J A u u ly g 3 3 4 4 , , 6 4 5 8 5 2 3 3 4 4 , ,2 6 6 8 5 7 - 2 3 1 2 7 2 2 6 1 1 1 3 1 8 7 - - 2 1 2 8 5 1 4 4 -24 5 23 -11 9 8 8 6 5 2 1 1 1 3 3 2 2 1 1 4 2 5 2 Sept 34.646 34,447 199 396 61 17 68 27 23 141 132 185 O N c o t v .? . f 3 3 4 4 , . 5 6 8 4 3 7 3 3 4 4 , , 4 2 1 9 4 4 3 1 5 6 3 9 1 6 92 2 2 6 8 5 --1102 31 -2 3 8 5 -4 2 0 0 32 5 1 1 2 0 6 7 1 4 2 9 9 Week ending— 1974—Nov. 6... 36,995 36,672 323 1,125 78 54 68 32 105 425 132 632 13... 36,479 36,335 144 1,097 70 -15 188 -29 30 40 480 148 399 20... 36,812 36,785 27 1,367 64 -16 465 8 29 -87 495 122 378 27... 36,769 36,459 310 1,479 63 69 243 27 87 814 127 422 1975—May 7... 35,237 34,926 311 34 177 21 -5 118 34 14... 34,517 34,518 -1 17 -106 -26 -17 1 148 16 21... 34,702 34,631 71 121 7 -33 9 -34 2 129 21 28... 34,209 34,045 164 84 9 53 4 -5 54 112 21 June 4... 34,511 34,177 334 84 9 18 61 19 137 160 23 11... 33,707 33,743 -36 38 11 -76 -32 -55 2- 127 25 18... 34,937 34,603 334 77 10 80 49 12 69 173 28 25... 34,706 34,615 91 188 11 19 97 -4 5 38 71 53 July 2... 35,481 35,085 396 871 15 57 189 39 117 468 183 214 9... 34,612 34,479 133 222 13 18 -20 -20 90 155 132 16... 34,864 34,791 73 202 15 -72 78 2 54 6 16 137 54 23... 34,898 34,695 203 382 19 107 151 9 50 -13 57 100 124 30... 34,999 34,718 281 253 23 82 15 67 91 117 162 Aug. 6 ... 34,553 34,354 199 180 29 13 10 31 14 145 166 2 1 0 3 . . . . . . 3 34 4 , , 6 1 2 6 9 3 3 3 4 4 , , 1 4 4 1 7 8 21161 2 1 0 7 4 9 3 3 5 7 -4 -4 6 -22 1 9 -4 7 5 3 7 1 7 8 1 1 2 2 9 3 1 12 0 7 8 27... 34,470 34,174 296 272 40 127 -7 48 87 128 170 Sept. 3 ... 34,529 34,228 301 222 50 28 24 81 58 168 164 10... 34,098 34,104 -6 385 53 -45 215 -31 -66 34 136 136 17... 34,552 34,285 267 327 60 79 19 17 174 152 142 24... 34,617 34,584 33 395 64 -66 79 -2 28 115 73 201 Oct. 1... 35,444 34,982 462 581 73 149 2 147 304 164 277 8... 34,260 34,284 -24 239 74 -83 -16 -52 51 127 188 15... 34,654 34,358 296 172 65 -9 33 94 12 178 121 34,605 34,576 29 233 63 -56 -32 -44 22 126 114 29 p.. 34,729 34,443 286 95 61 70 7 -9 7 97 88 Nov. 5*>.. 34,912 34,140 772 67 43 96 18 261 77 67 12».. 33,790 33,778 12 40 27 -128 -20 -105 4 121 36 19 P.. 34,751 34,566 185 59 26 10 18 -72 12 76 47 26p.. 34,724 34,512 212 74 26 -36 16 15 25 3 94 55 1 Beginning with week ending Nov. 15, 1972, includes $450 million of demand deposits of more than $400 million), as described in the BULLETIN reserve deficiencies on which F.R. Banks are allowed to waive penalties for July 1972, p. 626. Categories shown here as "Large" and "All other" for a transition period in connection with bank adaptation to Regulation J parallel the previous "Reserve city" and "Country" categories, respectively as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies (hence the series are continuous over time). included are (beginning with first statement week of quarter): Ql, $279 million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning NOTE.—Monthly and weekly data are averages of daily figures within 1974, Ql, $67 million; Q2, $58 million. Transition period ended after the month or week, respectively. second quarter, 1974. For weeks for which figures are preliminary, figures Borrowings at F.R. Banks: Based on closing figures. by class of bank do not add to the total because adjusted data by class are Effective Apr. 19, 1973, the Board's Regulation A, which governs lendnot available. ing by F.R. Banks, was revised to assist smaller member banks to meet 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks the seasonal borrowing needs of their communities. for reserve-requirement purposes has been based on size of bank (net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • MONEY MARKET BANKS A 5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net- Gross transactions Net transactions Reporting banks and Total Borweek ending— Net Per cent two-way Pur- Loans row- Net Bor- inter- Surplus of Pur- trans- chases Sales to ings loans 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—Oct. 1 227 130 9,880 -9,783 61.6 16,736 6,856 4,761 11,975 2,094 2,067 456 1,612 3 12,583 -12,586 80.9 18,090 5,508 4,399 13,691 1,109 3,124 430 2,694 15. 64 50 13,531 -13,517 86.1 19,099 5,568 4,100 14,999 1,468 3,950 332 3,618 22. 20 102 11,513 -11,635 73.9 17,314 5,802 4,405 12,909 1,397 2,943 363 2,580 29. 93 9,960 -9,867 63.8 15,987 6,027 4,387 11,600 1,640 2,248 402 1,846 Nov. 5. 589 11,954 -11,365 73.4 18,355 6,402 4,798 13,557 1,604 2,862 635 2,192 12. -10 16,667 -16,677 108.5 21,433 4,766 4,474 16,959 292 4,623 298 4,325 19. 9 14,388 -14,384 90.4 20,078 5,690 4,985 15,093 706 3,014 417 2,598 26. 3 12,954 -12,966 83.0 18,224 5,271 4,387 13,837 885 2,778 417 2,360 8 in New York City 1975—Oct. 122 2,697 -2,575 40.0 3,946 ,248 1,026 2,919 222 1,062 233 829 8. -9 2,654 -2,662 42.3 3,873 ,219 956 2,917 263 1,472 221 1,251 15. -14 3,422 -3,475 55.1 4,331 910 769 3,562 140 1,923 158 1,765 22. -31 2,110 -2,236 35.0 3,456 ,346 993 2,463 353 1,529 165 1,364 29. 69 2,274 -2,206 35.8 3,487 ,212 975 2,512 238 1,250 186 1,063 Nov. 5. 402 2,899 -2,497 39.7 3,842 944 882 2,961 62 1,419 294 1,126 12. -9 5,036 -5,045 81.6 5,667 631 631 5,036 1,785 102 1,683 19. 5 3,751 -3,746 57.2 4,966 ,215 1,215 3,751 1,580 156 1,424 26. 16 16 3,340 -3,340 53.7 4,271 931 794 3,477 138 1,343 139 1,205 38 outside New York City 1975—Oct. 1. 106 130 7,183 -7,207 76.2 12,790 5,608 3,735 9,055 1,872 1,006 222 783 8. 9 3 9,929 -9,923 107.1 14,217 4,288 3,443 10,774 845 1,651 208 1,443 15. 78 11 10,110 -10,042 106.8 14,768 4,658 3,331 11,437 1,328 2,027 174 1,852 22. 11 7 9,403 -9,399 100.5 13,858 4,456 3,412 10,446 1,044 1,414 198 1,216 29. 25 7,686 -7,661 82.5 12,500 4,815 3,412 9,088 1,402 998 216 783 Nov. 1 5 2 . . 1 - 8 1 7 1 9 1 , , 0 6 5 3 5 1 - - 1 8 1 , , 8 6 6 3 8 2 1 9 2 6 6 . . 4 6 1 15 4 , , 7 5 6 1 6 3 5 4 , , 4 1 5 3 8 4 3 3 , , 8 91 4 6 2 1 1 1 0 , ,5 9 9 2 7 3 1,5 2 4 9 2 2 2 1 , , 8 4 3 0 8 7 3 1 4 9 1 7 2 1 , , 6 0 4 6 2 6 2 1 6 9. . -12 4 1 9 0 , , 6 6 1 3 4 7 - - 1 9 0 , , 6 6 2 3 6 8 1 1 0 13 2 . . 7 3 1 1 3 5 , , 9 11 5 2 4 4 4 , , 4 3 7 4 5 0 3 3, , 5 7 9 7 4 0 1 1 0 1 , , 3 3 6 4 0 2 7 74 0 7 6 1 1 , , 4 4 3 3 4 4 2 2 6 7 1 8 1 1, , 1 1 5 7 6 3 5 in City of Chicago 1975—Oct. 1 3 2,829 -2,826 166.9 4,161 1,333 1,162 3,000 171 313 313 -12 3.875 -3,887 232.0 4,868 993 987 3,881 6 514 514 15. 15 4,437 -4,422 256.4 5,281 844 844 4,437 631 631 22. -12 4,098 -4,109 246.2 5,048 950 933 4,114 545 545 29. 14 3,729 -3,715 228.8 4,743 1,014 996 3,747 496 496 Nov. 1 5 2 . . -5 3 4 44,,626144 - - 4 4 , , 1 66 8 9 0 2 25 8 1 5 . . 9 5 5 5 , , 4 2 5 7 9 4 1 1,0 7 4 8 5 8 4 4, , 6 2 7 2 1 9 5 5 2 1 5 1 5 5 2 1 5 1 19. -4 4.876 -4,881 291.4 5,681 786 4,895 522 522 26. 30 4,381 -4,351 268.0 5,235 827 4,409 517 517 33 others 1975—Oct. 1 .. 102 130 4,354 -4,382 56.4 8,629 4,275 2,574 6,055 1,701 692 222 470 21 3 6,054 -6,036 79.5 9,349 3,296 2,456 6,894 840 1,138 208 930 15. 63 11 5,673 -5,620 73.2 9,488 3,815 2,487 7,000 1,328 1,396 174 1,222 22. 23 7 5,305 -5,286 68.9 8,811 3,506 2,478 6,332 1,027 869 198 671 29. 11 3,957 -3,946 51.5 7,758 3,801 2,417 5,341 1,384 502 216 286 Nov. 5. 153 4,841 -4,688 62.2 9,239 4,398 2,871 6,368 1,527 896 341 555 12. 4 6,968 -6,963 92.2 10,307 3,339 3,054 7,253 285 2,313 197 2,116 19. 9 5,761 -5,757 74.9 9,431 3,670 2,983 6,448 687 913 261 652 26. -42 5,233 -5,275 67.8 8,718 3,485 2,767 5,952 719 917 278 639 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 • DECEMBER 1975 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sec. 10(b) 2 Loans to all others under Under Sees. 13 and 13a 1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate 0 n Effective Previous Rate on Effective Previous^ 11/30/75 date rate 11 / 30/75 date rate 11 /30/75 date3 rate 11/30/75 date rate Boston 6 5/16/75 61/4 61/2 5/16/75 634 7 7/2/75 71/2 9 3/10/75 91/2 New York 6 5/16/75 61/4 61/2 5/16/75 634 7 6/24/75 71/2 9 3/10/75 91/2 Philadelphia 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Cleveland 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Richmond 6 5/16/75 61/4 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Atlanta 6 5/16/75 61/4 61/2 5/16/75 634 7 6/3/75 71/2 9 3/10/75 91/2 Chicago 6 5/16/75 614 61/2 5/16/75 63/4 7 6/9/75 71/2 9 3/14/75 91/2 St. Louis 6 5/16/75 6V4 61/2 5/16/75 63/4 7 7/15/75 71/2 9 3/14/75 91/2 Minneapolis 6 5/23/75 61/4 61/2 5/23/75 63/4 7 6/9/75 71/2 9 3/10/75 91/2 Kansas City 6 5/16/75 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 7% 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 91/2 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 1 3 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955 21/2 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11 434-5 5 30. 4 4 19 434 43/4 1956— A A u p g r. . 2 1 4 3 2 2 2 1 3 3 / 4 4 2 - - - 3 3 3 3 2 2 3 3 4 4 1965—Dec. 1 6 3 . . 4 41 -4 /2 1/2 4 4 1 1 / / 2 2 Dec. 2 1 1 4 3 7 4 4 1 1 / / 4 2 2 1 - - / 4 4 2 3 3 4 4 4 4 4 1 I 3 / / 4 2 2 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15 5 5 11995577—— N D AA e uu o c gg v . .. . 2 1 3 2 5 3 3 3 3 1 - - / 3 3 2 1 i / / 2 2 3 3 3 3 1 /2 1968— N M o a v r . . 2 2 1 1 0 7 5 4 . . . . 4 4 1 4 4 /2 1 - - 4 / 5 2 1/ 2 4 4 4 4 1 1 1 / / / 2 2 2 A M M Fe p a a b r y r . . . 2 2 6 4 2 3 5 5 1/ 5 5 2 1 3 - - 5 / 4 5 2 1 3 / 4 2 5 5 5 5 1 1 1 3 / / / 4 2 2 2 1958—J M an a . r . 2 2 4 2 7 2 2 2 3 3 1 / 4 4 4 - - - 3 3 3 2 2 3 3 V / a 4 A Au p g r. . 2 2 1 1 2 6 9 6 . . . . 5 5 1 5 4 5 1 - - 5 5/ 1 21/ / 2 2 5 5 5 5 1 1 1 / / / 2 2 2 June 1 1 1 1 1 1 5 8 6 5 3 6 6 4 1 - - / 6 6 2 1 /2 6 6 6 6 1 1 / / 2 2 13 214-234 21/4 30. 51/4 51/4 July 2 7 7 21 21/4 21/4 Dec. 18. 51/4-51/2 51/2 Aug. 14 7 -71/2 7i/i Apr. 18 134-21/4 13/4 20. 51/2 51/2 2 3 71/2 71/2 S A M e u a p g y t . . 1 1 9 2 5 1 1 3 3/ 4 1 4 3 - - 2 4 2 2 1 1 3 3 / / 4 4 1969—Apr. 4 8, , 51 6 /2 -6 6 6 1974—Apr. 2 3 5 0 71/g2 -8 83 23 2 2 534-6 Dec. 9 734-8 734 1959— N O M c o a t v . r . . 2 7 4 6 2 2 1/ 2 2 1 - - 2 / 3 2 1 /2 2 2 3 1 /2 1970— D N e o c v . . 1 1 1 1 6 1 3 , . , 5 51 3 / 5 , 2 4 3 - - 5 6 ^ 3/ 4 65 5 5 3 3 3 / 4 / 4 4 1975—Jan. 1 1 6 0 6 7 7 1 1 / / 7 4 4 3 - - 7 4 7 3 3 / 4 4 7 7 7 3 1 3 / / / 4 4 4 J S M u e a n p y e t. 2 1 1 1 9 1 2 6 3 3 1/ 3 3 2 1 - - 3 / 4 2 1 /2 4 3 3 3 1 1 / / 2 2 1971—Jan. il 4 8 , 5 5 1 1/ / 5 4 2 1 - - 5 / 5 2 1 3 / 4 2 5 5 5 1 1 1 / / / 2 2 4 M Fe a b r . . 1 2 0 5 4 7 6 61 3 / 4 7 6 4 1 - 3 - 7 / 4 6 4 1 3 / 4 4 7 6 6 6 1 1 3 3 / / / 4 4 4 4 18 4 4 15. 51/4 51/4 14 61/4 614 1960— S A Ju e u n p g e t . . 1 1 1 9 4 2 0 3 3 3 3 1 1 / / 3 3 2 2 1 - - - 3 / 4 4 2 1 /2 4 3 3 3 3 1 1 / / 2 2 J F u e l b y . 2 2 1 1 1 1 2 9 6 9 3 9 , , , 4 4 5 5 3 * 5 4 / 4 4 3 - - - - 5 5 5 / 5 1 1 4 / / 4 4 5 5 5 5 5 4 1 3 / / 4 4 In effec M t, a N y o v 1 2 . 6 3 3 0, 1975.... 6 6 6 - 61/4 6 6 6 1963—July 17 3 -31/2 31/2 23 5 5 26 31/2 31/2 NOTE.—Rates under Sees. 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

DECEMBER 1975 • RESERVE REQUIREMENTS A 7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) EEEffffffeeeccctttiiivvveee dddaaattteee iii Reserve city Other Other time SSaavviinnggss 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963 161/2 12 44 1966 July 14,21 44 44 555 Sept 8,15 666 1967 Mar. 2 333111///222 333111///222 Mar. 16 333 333 1968—Jan. 11,18 111666111///222 111777 111222 111222111///222 1 19 9 7 6 0 9 — —A O p c r t. 1 1 7 111777 111777%%% 111222111///222 111333 55 Beginning Nov. 9, 1972 Net demand2,4 Time 3 Other time EEEEffffffffeeeeccccttttiiiivvvveeee ddddaaaatttteeee 000---222 222---111000 111000---111000000 111000000---444000000 OOOvvveeerrr SSSaaavvviiinnngggsss 0-5, maturing in— Over 55, maturing in— 444000000 Less than 4 years 30-179 180 days 4 years 4 years or more days to 4 years or more 1972—Nov. 9 8 10 12 666 III666III///222 171/2 7 3 7 3 75 Nov 16 111333 1973—July 19 IIOOII//22 112211//22 111333111///222 11118888 1974—Dec. 12 111177771111////2222 66 33 1975 Feb 13 7711//22 1100 1122 1133 IIII6666IIII////2222 Oct 30 33 88 11 33 88 11 In effect Nov. 30, 1975. 71/2 10 12 13 16% 3 33 88 11 6 33 88 11 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 supcomputed 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 16 Vi per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. Beginning Nov. 10, 1975, profitmaking businesses may maintain savings 7 See columns above for earliest effective date of this rate. deposits of $150,000 or less at member banks. For details of 1975 action, 8 The average of reserves on savings and other time deposits must be see Regulations D and Q, and also BULLETINS for Oct. and Nov., p. 708 at least 3 per cent, the minimum prescribed by law. For details, see Regulaand p. 769. tion D and also BULLETINS for Oct. and Nov. 1975, p. 705 and p. 769. Notes 2(b) and 2(c) above are also relevant to time deposits. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re- NOTE.—Required reserves must be held in the form of deposits with serve cities, and on the same date requirements for reserves against net F.R. Banks or vault cash. demand deposits of member banks were restructured to provide that each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • DECEMBER 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 Other time deposits (multiple- Multiple maturity-.2 and single-maturity):1, 2 30-89 days 4 4% Less than $100,000: 9 1 0 - 2 d a y y e s a t r o s 1 year 5 5 % 9 3 0 0 - d 8 a 9 y s d a to y s 1 year 55 % 5 5 5 5 % Singl 2 e - y m ea a r t s u r o i r t y m : ore 5 5V4 2 1 lA -2 % ye a y r e s a o rs r more 66 % 6 6 Vi 6 6 % 66 % Less than $100,000: Minimum denomination $1 3 6 2 0 3 1 0 0 0 0 - y 2 , - - 0 e d 8 5 a 0 a 9 9 y r 0 y s e d d s a o a o a r t r r y y o s s s m m 1 o o y r r e e e a : r 5>A 3 5 % Y4 5 5 5 ( ( 3 3 ) ) % % $1 G 00 o 4 6 , v 0 - e 6 y 0 o r 0 e f n y a m e o $ rs a r 1 e r , o m s n 0 r t 0 o a m l 0 r e : o u r n e i ts ( ( ( 4 5 3 ) ) ) IV ( ( 5 3 A ) ) 7 m (3 % ) 7 m ( 1 3> / 4 9 1 1 0 8 y 0 -1 e d a 7 r a 9 y o s d r a t y m o s o 1 r e y ear 5Vi 5% 6 6 6 V V a a ( ( ( 3 3 3 ) ) ) 1 For exceptions with respect to certain foreign time deposits, see amount were subject to the 6V2 per cent ceiling that applies to time de- BULLETIN for Feb. 1968, p. 167. posits maturing in 2Vi years or more. 2 Multiple-maturity time deposits include deposits that are automati- Effective Nov. 1, 1973, a ceiling rate of 7^ per cent was imposed on cally renewable at maturity without action by the depositor and deposits certificates maturing in 4 years or more with minimum denominations that are payable after written notice of withdrawal. of $1,000. There is no limitation on the amount of these certificates that 3 Maximum rates on all single-maturity time deposits in denominations banks may issue. of $100,000 or more have been suspended. Rates that were effective 5 Prior to Nov. 27, 1974, no distinction was made between the time Jan. 21, 1970, and the dates when they were suspended are: deposits of governmental units and of other holders, insofar as Regulation 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 1 V /a i p p e e r r c c e e n n t t l 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 t s e i d t s t w o it h h o d ld e n s o a m vi i n n g a s t io d n e s p o u s n it d s er a n $ d 1 0 c 0 o ,0 u 0 l 0 d 90-179 days 6% per cent | irrespective of maturity, as high as the maximum rate permitted on such 180 days to 1 year 7 per cent > May 16, 1973 deposits at any Federally insured depositary institution. 1 year or more ll/i per cent] NOTE.— Maximum rates that may be paid by member banks are estab- Rates on multiple-maturity time deposits in denominations of $100,000 lished by the Board of Governors under provisions of Regulation Q; or more were suspended July 16, 1973, when the distinction between however, a member bank may not pay a rate in excess of the maximum single- and multiple-maturity deposits was eliminated. rate payable by State banks or trust companies on like deposits under 4 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates the laws of the State in which the member bank is located. Beginning maturing in 4 years or more with minimum denominations of $1,000. Feb. 1, 1936, maximum rates that may be paid by nonmember insured The amount of such certificates that a bank could issue was limited to commercial banks, as established by the FDIC, have been the same as 5 per cent of its total time and savings deposits. Sales in excess of that those in effect for member banks. For previous changes, see earlier issues of the BULLETIN. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4. 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946—Jan. 20. 1 7 0 5 0 1 7 0 5 0 1946—Jan. 21 1947—Jan. 31. 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. 3 . 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 1972—Nov. 24 1974—Jan. 2.. 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

DECEMBER 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 -5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp- Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur- sales tions pur- sales shifts, or pur- sales maturity pur- sales maturity pur- sales maturity chases chases redemp- chases shifts chases shifts chases shifts tions 1970.. 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 1971.. 8,896 3,642 1,064 1,036 -6,462 ,338 4,672 933 685 311 150 1972., 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1974. 11,660 5,830 4,550 450 -1,314 797 -697 434 1.675 196 205 1974—Oct... 547 1,110 1,063 Nov.. 1,422 273 107 148 -1,623 92 ,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 ,579 -1,494 361 194 450 212 Apr.. 2,119 318 506 148 485 274 164 May. 903 354 407 50 -3,131 6,635 -3,801 '298 June. 421 161 612 20 691 488 -529 180 109 July.. 1,505 800 Aug.. 312 282 400 2,002 -2,144 150 1,299 64 -i,444 47 '300 Sept.. 2,118 200 278 562 -278 137 124 Oct... 1,263 "766 400 48 -48 Matched Total outright1 s t a r l a e n - s p a u c r t c i h o a n s s e R ag e r p e u e r m ch e a n s ts e Net Federal agency obligations acc B e a p n t k a e n r c s e s, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur- Net Period Govt, chase change 3 securi- agree- Repur- Gross Gross Gross ties Gross Sales or ments, chase pur- Gross Redemp- Gross pur- pur- Gross pur- redemp- net Out- agreechases 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—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 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 J A u u l g y . . . , 2,574 1,5 2 0 8 5 2 2,3 8 8 0 9 0 1 1 4 5 , , 2 5 3 3 4 2 1 1 3 5 , , 7 13 3 9 0 8 5 , , 1 9 4 7 6 7 6 6, , 8 1 8 46 1 -2,8 6 6 6 6 3 353 -6 9 1 0 -13 156 -2 1 , , 9 2 2 2 6 2 Sept.., 2,940 200 19,931 19,835 16,664 14,857 4,451 394 203 14 94 5,155 Oct... 1,263 766 400 15,886 16,113 13,699 13,838 186 284 -124 49 50 445 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 holddirectly 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. Aug. 1975, 1,989. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 FEDERAL RESERVE BANKS • DECEMBER 1975 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1975 1975 1974 Nov. 26 Nov. 19 Nov. 12 Nov. 5 Oct. 29 Nov. 30 Oct. 31 Nov. 30 Assets 11,599 11,599 11,599 11,599 11,599 11,599 11,599 11,460 Special Drawing Rights certificate account 500 500 500 500 500 500 500 400 370 375 382 384 390 375 398 250 Loans: Member bank borrowings 184 92 70 52 98 46 73 1,225 Other Acceptances: 777333111 777222444 777222000 777444777 777333999 727 777444777 333999111 333999222 222111333 111666000 222222999 111555888 333000000 222222000 Federal agency obligations: 666,,,000777222 666,,,000777222 666,,,000777222 666,,,000777222 666,,,000777333 6,072 666,,,000777333 444,,,333444222 222999888 111000888 222111222 444000 999111 111666999 333666999 U.S. Govt, securities: Bought outright: Bills 333555,,,666777111 333555,,,444444111 333333,,,111666111 333000,,,444444666 333555,,,777444000 35,924 333555,,,777444777 333777,,,111000111 Other 43,765 43,542 43,400 43,400 43,400 43,765 43,400 39,774 5,448 5,317 5,104 5,104 5,104 5,448 5,104 3,254 118844,,888844 118844,,330000 ii 8811,,666655 11 7788,,995500 118844,,224444 185,137 ii 8844,,225511 ii 8800,,112299 HHeelldd uunnddeerr rreeppuurrcchhaassee aaggrreeeemmeennttss 44,,778877 11,,448877 33,,002277 661144 22,,995588 22,,993333 886699 89,671 85,787 84,692 79,564 87,202 85,137 87,184 80,998 PP9977,,334488 PP9922,,999966 PP9911,,992266 PP8866,,770044 pp9944,,336611 PP9911,,998822 PP9944,,554466 87,545 77,,550022 88,,664433 88,,661199 88,,110088 66,,661144 77,,555522 55,,880077 7,530 331166 331166 331144 331133 331133 331166 331133 257 OOOpppeeerrraaatttiiinnnggg eeeqqquuuiiipppmmmeeennnttt 1111 1111 1111 1111 88 1122 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr aaaaaaasssssssssssssseeeeeeetttttttsssssss::::::: 442233 441133 441133 441133 441133 442233 441133 40 22,,447711 22,,334422 33,,006655 22,,998866 22,,994411 22,,550011 33,,220022 2,602 P 120,540 P 117,195 P 116,829 P 111,018 P 117,139 P 115,260 P116,789 110,084 LLLLLLLiiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss 75,374 74,971 74,917 73,895 73,233 75,249 73,063 69,036 DDDDDDDeeeeeeepppppppooooooosssssssiiiiiiitttttttsssssss::::::: P30,855 P28,210 P30,059 P24,701 P28,688 »25,864 * 26,352 29,860 4,327 4,175 2,577 3,066 6,124 4,919 8,517 1,495 324 244 222 355 236 347 297 626 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr::::::: 978 566 642 692 594 888 594 799 p36,484 P33,195 P33,500 p 28,814 P35,642 * 32,018 »35,760 32,780 5,227 5,704 5,297 5,246 4,818 4,590 4,468 4,965 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss aaaaaaannnnnnnddddddd aaaaaaaccccccccccccccrrrrrrruuuuuuueeeeeeeddddddd dddddddiiiiiiivvvvvvviiiiiiidddddddeeeeeeennnnnnndddddddsssssss 1,206 1,185 1,086 1,145 1,147 1,101 1,163 1,264 P118,291 P 115,055 P114,800 P 109,10P01 14,840 ®112,958 »114,454 108,045 CCCCCCCaaaaaaapppppppiiiiiiitttttttaaaaaaalllllll aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 920 920 919 918 916 920 917 894 897 897 897 897 897 897 897 844 432 323 213 103 486 485 521 301 TTTTTTToooooootttttttaaaaaaalllllll llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss aaaaaaannnnnnnddddddd cccccccaaaaaaapppppppiiiiiiitttttttaaaaaaalllllll aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss P120,540 P117,195 P116,829 P111,018 P117,139 »115,260 * 116,789 110,084 CCCCCCCooooooonnnnnnntttttttiiiiiiinnnnnnngggggggeeeeeeennnnnnnttttttt llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttyyyyyyy ooooooonnnnnnn aaaaaaacccccccccccccceeeeeeeppppppptttttttaaaaaaannnnnnnccccccceeeeeeesssssss pppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeeeddddddd fffffffooooooorrrrrrr fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn cccccccooooooorrrrrrrrrrrrrreeeeeeessssssspppppppooooooonnnnnnndddddddeeeeeeennnnnnntttttttsssssss 11,,770022 Marketable U.S. Govt, securities held in custody for foreign and international accounts 42,135 43,066 42,382 42,244 42,730 41,973 42,399 3322,,885522 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 79,736 79,354 78,996 78,682 78,654 79,975 78,659 73,234 Collateral held against notes outstanding: 11,596 11,597 11,596 11,595 11,596 11,596 1,596 2,850 Special Drawing Rights certificate account 302 302 302 302- 302 302 302 A RRANTANRPC 69,980 69,765 69,610 69,410 69,410 69,980 69,410 71,215 Total collateral 81,878 81,664 81,508 81,307 81,308 81,887 30,308 74,065 1 See note 2 on p. A-2. 2 See note 6 on p. A-3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 1975 1975 Nov. 26 Nov. 19 Nov. 12 Nov. 5 Oct. 29 Nov. 30 Oct. 30 Loans—Total 184 92 70 52 98 46 73 Within 15 days... 181 86 52 30 86 43 46 16-90 days 3 6 18 22 12 3 27 91 days to 1 year.. Acceptances—Total. 1,123 937 976 897 727 1,047 Within 15 days... 453 279 242 341 264 70 421 16-90 days 328 319 298 294 293 334 294 91 days to 1 year. 342 339 340 341 340 323 332 U.S. Govt, securities—Total. 89,671 85,787 84,692 79,564 87,202 85,137 87,184 Within 15 days1 8,269 5,767 7,766 3,833 7,342 2,430 6,148 16-90 days 20,275 20,001 14,967 13,107 17,427 21,460 18,235 91 days to 1 year 20,476 19,711 22,348 23,013 22,774 20,596 23,190 1-5 years 30,292 30,161 30,051 30,051 30,099 30,292 30,051 5-10 years 6,348 6,266 5,893 5,893 5,893 6,348 5,893 Over 10 years 4,011 3,881 3,667 3,667 3,667 4,011 3,667 Federal agency obligations—Total. 6,370 6,180 6,284 6,112 6,164 6,072 6,242 Within 15 days1 405 225 266 40 129 107 207 16-90 days 73 118 181 235 216 108 216 91 days to 1 year 780 675 675 675 657 745 657 1-5 years 3,222 3,282 3,282 3,282 3,282 3,222 3,282 5-10 years 1 ,294 1,284 1,284 1,284 1 ,284 1 ,294 1,284 Over 10 years 596 596 596 596 596 596 596 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 23 2 Leading SMSA's Total 232 Total SMSA's 226 Total SMSA's 233 (excl. other 233 (excl. SMSA's N.Y. 6 others2 N.Y.) SMSA's SMSA's N.Y. 6 others2 N.Y.) 1974—Oct.. 22.348.8 10,271.1 5,084.7 12.077.6 6.993.0 127.0 316.8 127.3 84.1 Nov. 22,918.7 10,538.9 5,160.2 12,379.8 7,219.6 131.8 324.6 131.5 87.5 Dec. 22.192.4 9,931.8 5.152.7 12,260.6 7,107.9 128.0 312.8 131.8 86.6 1975—Jan.. 21,856.3 10,157.8 4,868.4 11.698.4 6.830.1 127.3 321.8 125.9 83.4 Feb.. 22,952.7 10,918.0 4.992.8 12.034.7 7,041.9 133.3 343.2 127.4 85.8 Mar. 22.182.9 10.241.1 4.899.9 11.941.8 7,041.9 125.1 320.4 118.2 82.2 Apr.. 22.707.5 10,810.3 4,770.6 11,897.2 7,126.9 127.8 330.3 115.5 82.1 May, 22,739.7 10,826.1 4,852.6 11.913.6 7,016.0 129.2 333.9 121.3 83.0 June, 22,504.2 10.612.2 4.755.2 11,892.0 7,136.9 124.6 328.6 115.5 80.2 July. 22,830.2 10,709.5 4,841.1 12.120.7 7,279.5 126.4 331.0 116.4 81.7 Aug. r23,269.4 10,628.8 r5,125.1 12.640.5 '2,515.4 130.4 335.0 124.4 86.2 Sept. 23,181.9 10,585.0 5,153.0 12.596.9 2.443.8 128.8 330.7 123.8 85.1 Oct.. 24,137.7 11,801.5 4.921.3 12,336.2 2.414.9 134.0 364.0 118.7 83.5 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 the July 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 MONEY STOCK • DECEMBER 1975 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period MI M MS Mi Mi MI M MI Mi Mi 2 2 Composition of measures is described in the NOTE below. 1972—Dec 255.8 525.7 844.9 569.7 888.8 263.0 530.7 848.0 574.9 892.2 1973—Dec 271.5 572.2 919.6 636.0 983.4 279.1 577.3 922.8 641.3 986.8 1974—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 1,062.4 285.1 609.7 972.8 696.8 1,059.9 Dec 284.4 613.5 981.7 703.7 1,072.0 292.3 618.6 985.0 709.0 1,075.5 1975—Jan 281.6 614.8 986.3 707.6 1,079.1 288.6 620.7 991.7 712.7 1,083.6 Feb 282.4 619.1 994.4 711.2 1,086.5 279.4 616.7 992.1 705.9 1,081.4 Mar 285.0 625.1 1,005.9 714.8 1,095.7 282.2 624.6 1,007.3 712.7 1,095.4 Apr 285.8 628.9 1,015.7 717.3 1,104.1 287.3 633.3 1,022.4 719.1 1,108.2 May 288.5 635.9 1,028.3 721.5 1,113.9 283.7 634.1 1,028.2 718.2 1,112.3 June 293.0 646.1 1,045.3 730.1 1,129.4 291.1 645.5 1,047.1 727.9 1,129.4 July 293.5 650.5 1,055.9 732.6 1,138.0 293.1 650.1 1,057.5 731.4 1,138.8 Aug 294.2 653.7 1,064.2 731 .7 1,142.2 290.9 650.0 1,060.2 731.1 1,141.3 Sept 294.7 656.3 1,071.1 735.4 1,150.2 292.8 652.7 1,066.6 735.4 1,149.3 Oct.* ''294.0 658.5 1,077.6 739.8 1,158.8 293.5 656.5 1,074.3 740.2 1 ,158.0 NOTE.—Composition of the money stock measures is as follows: Ms: M2 plus mutual savings bank deposits, savings and loan shares, and credit union shares (nonbank thrift). Mi: Averages of daily figures for (1) demand deposits of commercial MA: MI plus large negotiable CD's. banks other than domestic interbank and U.S. Govt., less cash items in MB : Mi plus large negotiable CD's. process of collection and F.R. float; (2) foreign demand balances at F.R. For a description of the latest revisions in Mi, M2, and 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 including revisions since Oct. 1974 posits open account, and time certificates other than negotiable CD's of are available from the Board's Sept. 18, 1975, H.6 release. Back data are $100,000 of large weekly reporting banks. available from the Banking Section, Division of 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 Nondeposits bank deposits bank Cur- De- thrift Cur- thrift ren- mand insti- ren- insticy de- tu- cy Do- tupos- tions2 mes- tions2 its CD's1 Other Total Total Mem- tic CD's1 Other Total ber nonmember 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 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 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 67.4 216.2 85.5 328.0 413.5 365.3 67.9 217.3 156.0 57.7 87.1 324.6 411.7 363.0 67.9 216.5 90.3 329.1 419.3 368.2 69.0 223.3 160.4 58.9 90.5 326.3 416.7 366.5 68.2 213.4 92.7 333.2 426.0 371.5 67.8 220.9 158.8 58.5 91.9 332.1 424.0 371.0 68.7 213.7 92.1 336.7 428.8 375.3 67.8 211.6 152.3 56.1 89.2 337.3 426.5 375.4 69.4 215.6 89.8 340.1 429.9 380.8 68.8 213.4 153.9 56.2 88.1 342.4 430.5 382.7 69.5 216.3 88.4 343.1 431.5 386.8 69.1 218.2 157.5 57.7 85.8 345.9 431.8 389.1 70.2 218.3 85.5 347.4 432.9 392.4 70.0 213.7 154.0 56.9 84.1 350.4 434.5 394.1 71.1 221.9 84.1 353.1 437.1 399.2 71.2 219.9 157.7 59.2 82.3 354.4 436.7 401.5 71.4 222.1 82.1 357.0 439.1 405.4 71.9 221.1 158.3 59.8 81.3 357.0 438.3 407.4 71.9 222.3 78.0 359.4 437.4 410.5 72.2 218.7 156.3 59.5 81.1 359.1 440.2 410.2 72.0 222.7 79.1 361.7 440.7 414.8 71.9 220.9 157.5 60.3 82.7 359.9 442.6 413.8 72.6 221.5 81.3 364.5 445.7 419.0 72.5 221.0 157.1 60.9 83.7 363.0 446.7 417.8 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also NOTE above, mutual savings banks, for savings capital at savings and loan associations, and for credit union shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • BANK RESERVES; BANK CREDIT A 13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements ;3 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss44 NNNooonnn--- TTToootttaaalll bbbooorrr--- RRReee--- AAAvvvaaaiiilll--- Demand Demand rrrooowwweeeddd qqquuuiiirrreeeddd aaabbbllleee222 TTiimmee TTiimmee TToottaall aanndd TToottaall aanndd SS..AA.. NN..SS..AA.. ssaavviinnggss Private U.S. ssaavviinnggss Private U.S. Govt. Govt. 31.46 30.41 31.17 29.09 402.0 242.0 154.5 5.6 406.8 240.7 '160.5 6.1 406.4 411.2 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 36.85 35.04 36.73 '34.88 480.5 317.2 159.5 3.7 480.5 318.6 159.1 2.7 488.3 488.3 36.88 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 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 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 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 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 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 34.63 34.56 34.47 32.80 493.7 329.0 162.6 2.1 491.8 329.8 159.0 3.0 501.2 499.2 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 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 34.57 34.36 34.37 32.77 496.0 327.9.* 165.3 2.9 494.8 330.5 162.3 2.0 503.0 501.8 34.68 34.28 34.49 32.79 498.8 330.1 165.6 3.1 499.1 332.2 '164.0 2.9 505.8 506.1 34.59 34.40 34.39 32.69 500.1 333.4 163.8 2.9 500.5 334.6 '163.5 2.5 508.0 508.4 1 Averages of daily figures. Member bank reserve series reflects actual by Regulation D. Private demand deposits include all demand deposits reserve requirement percentages with no adjustment to eliminate the except those due to the U.S. Govt., less cash items in process of collection effect of changes in Regulations D and M. Required reserves were in- and demand balances due from domestic commercial banks. creased by $660 million effective Apr. 16, 1969, and $400 million effective 4 "Total member bank deposits" subject to reserve requirements, plus Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. Euro-dollar borrowings, loans sold to bank-related institutions, and Required reserves were reduced by approximately $2.5 billion, effective certain other nondeposit items. This series for deposits is referred to as Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 "the adjusted bank credit proxy." million effective Nov. 22. NOTE.— For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined "Revision of Money Stock Measures and Member Bank Reserves and as (1) required reserves for (a) private demand deposits, (b) total time Deposits" on pp. 817-27 of the Dec. 1974 BULLETIN. and savings deposits, and (c) nondeposit sources subject to reserve re- Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities TTToootttaaalll TTToootttaaalll DDDDaaaatttteeee llloooaaannnsss Commercial llloooaaannnsss Commercial aaannnddd and industrial3 aaannnddd and industrial3 iiinnnvvveeesssttt--- PPlluuss UU..SS.. iiinnnvvveeesssttt--- PPlluuss UU..SS.. mmmeeennntttsss 111 TToottaall ii ll ss oo oo aa ll nn dd ss 22 Total l P o l a u n s s TTrr uu ee rr aa yy ss-- OOtthheerr44 mmmeeennntttsss 111 TToottaall ii ss lloo oo aa lldd nn 22 ss Total l P o l a u n s s TTrr uu ee rr aa yy ss -- OOtthheerr44 sold2 sold2 1971—Dec. 31 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328 >3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31 630.3 447.3 451.6 155.8 158.4 52.8 130.2 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Nov. 275 6. . 692.5 503.8 508.7 184.3 187.0 49.1 139.6 692.2 502.0 506.9 183.2 185.9 52.1 138.1 Dec. 31 687.1 498.2 503.0 182.6 185.3 48.8 140.1 705.6 510.7 515.5 186.8 189.6 54.5 140.5 1975—Jan. 29 690.0 501.3 505.9 184.1 186.8 48.7 140.0 689.1 496.5 501.1 181.9 184.6 53.5 139.1 Feb. 26 692.6 498.9 503.4 182.5 185.2 53.2 140.5 686.8 492.8 497.3 180.7 183.4 54.6 139.5 Mar. 26 697.0 498.3 503.0 180.9 183.7 58.5 140.2 692.5 492.3 496.9 180.5 183.3 59.3 140.9 Apr. 30 699.1 495.0 499.6 180.5 183.2 64.0 140.1 698.1 493.1 497.7 181.1 183.8 63.3 141.7 May 28 702.0 492.8 497.5 179.1 181.9 68.2 141.0 698.3 491.6 496.3 178.7 181.5 65.0 141.7 June 30 705.0 489.9 494.6 176.3 179.2 72.4 142.7 709.3 497.2 501.9 179.0 181.9 68.2 143.9 July 30*.... 706.4 489.6 494.1 177.6 180.4 73.4 143.4 704.9 491.7 496.2 177.5 180.3 69.6 143.6 Aug. 27 P.... 710.4 490.7 495.2 177.5 180.3 75.6 144.1 705.6 489.7 494.2 176.0 178.8 72.1 143.8 Sept. 24 P.... 711.6 490.4 494.9 176.4 179.2 77.1 144.1 711.5 491.7 496.2 176.8 179.6 75.4 144.3 Oct. 29®.... 715.0 494.1 498.8 177.9 180.8 75.1 145.8 713.3 492.4 497.1 176.6 179.5 76.1 144.8 Nov. 26*.... 721.3 498.0 502.7 178.9 181.7 76.3 147.0 720.9 496.0 500.7 177.8 180.6 79.6 145.3 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, "Total loans and investments" of all commercial 2 Loans sold are those sold outright for banks' own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks' holding of one large bank. Reductions in other items were: "Total loans," $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in "Commercial and industrial loans"), the holding company. Prior to Aug. 28, 1974, the institutions included and "Other securities," $0.5 billion. In late November "Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans" were increased by $0.1 billion as a result of loan rewas also different. On the new basis, both "Total loans" and "Com- classifications at another large bank. mercial and industrial loans" were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by NOTE.—Total loans and investments: For monthly data, Jan. 1959about $400 million as of June 30, 1972. June 1973, see Nov. 1973 BULLETIN, pp. A-96-A-97, and for 1948-58, 4 Farmers Home Administration insured notes included in "Other Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current securities" rather than in loans beginning June 30, 1971, when such notes seasonally adjusted series see the Nov. 1973 BULLETIN, pp. 831-32, and totaled about $700 million. the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans: 5 Data beginning June 30, 1974, include one large mutual savings For monthly data, Jan. 1959-June 1973, see Nov. 1973 BULLETIN, pp. bank that merged with a nonmember commercial bank. As of that date A-96-A-98; for description see July 1972 BULLETIN, p. 683. Data are for there were increases of about $500 million in loans, $100 million in "Other last Wednesday of month except for June 30 and Dec. 31; data are partly securities," and $600 million in "Total loans and investments." or wholly estimated except when June 30 and Dec. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 COMMERCIAL BANKS • DECEMBER 1975 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Total Deposits assets— Total Classification by Securities lia- Interbank3 Other Total Num- FRS membership Cash bilities Bor- capital ber and FDIC assets 3 and row- ac- of insurance Total Loans capital Total 3 Demand ings counts banks l U.S. Other ac- De- Treas- 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series6 AH commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 15,952 23 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 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 1970—Dec. 318. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 1971—Dec. 31.. 516,564 346,930 64,930 104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 1972—Dec. 31.. 598,808 414,696 67,028 117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 1973—Dec. 31.. 683.799 494,947 58,277 130,574 118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 1974—Nov. 27.. 729,640 539,400 52,140 138,100 116,220 894,530 708,150 34,230 10,310 3,910 248.730 410,970 71,470 Dec. 31.. 744,107 549,183 54,451 140,473 128,042 919,552 747,903 43,483 11,496 4,807 267;506 420,611 58.369 1975—Jan. 29.. 724,820 532,230 53,500 090101,670 875,020 702,170 29,980 11,740 4,520 233,880 422,050 61,460 Feb. 26.. 725,480 531,390 54,550 540103,880 879,080 702,500 29,930 10,440 2,630 234,610 424,890 64,290 Mar. 26.. 731,690 531,440 59,330 920105,850 889,370 712,520 30,410 11,680 3,950 236,900 429,580 63.370 Apr. 30.. 731,100 526,120 63,280 700114,140 899,110 723,060 33,140 ,880 7,910 242,580 427,550 61,340 May 28.. 733,690 527,030 65,000 14,400 901,280 725,590 32,51011,200 2,950 246,410 432,520 61,700 June 30.. 747,551 535,493 68,191 128,716 930,719 754,324 42,58211,209 3,117 264,027 433,389 62,420 July 30*. 738,850 525,640 69,620 106,780 900,210 724,350 33,16010,830 2,230 243,470 434,660 61,800 Aug. 27p. 740,590 524,700 72,060 104,030 898,940 723,090 31,51010,570 2,850 242,290 435,870 59,770 Sept. 24P. 742,300 522,580 75,440 105,160 903,440 724,490 31,280 10,990 3,220 240,080 438,920 60,790 Oct. 29P. 745,150 524,260 76,050 109,140 911,930 733,730 31,830 210 2,700 247,030 440,960 60,310 Nov. 26*\ 754.800 529,910 79,550 121,350 934,410 749,140 34,480 111160 3,600 256,960 442,940 66,360 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 A 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 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 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 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 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 1973—Dec. 31.. 528,124 391,032 41,494 95,598 100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 1974—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 Dec. 31.. 568,532 429,537 38,921 100,073 106,995 715,615 575,563 41,062 10,052 3,183 204,203 317,064 52,850 1975—Jan. 29 550,220 414,419 37,549 252 86,350 676,898 536,256 28,31 10,299 3,247 177,701 316,698 56,105 Feb. 26.. 549,144 412,076 38,628 440 88,430 678,970 535,250 28,157 8,991 1,989 178,596 317,517 58,868 Mar. 26.. 552,957 411,446 42,544 967 89,685 685,906 542,076 28,564 10,231 2,794 180,214 320,273 58,030 Apr. 30.. 550,756 406,676 45,142 938 96,694 692,147 549,824 31,102 10,433 6,212 184,693 317,384 55,738 May 28.. 551,264 405,803 46,918 543 96,455 691,485 549,996 30,191 9,751 2,178 187,439 320,437 56,140 June 30.. 562,667 412,939 49,610 118 107,152 716,364 573,382 39,847 9,576 2,166 201,197 320,596 56,334 July 30.. 553,545 403,742 50,050 753 89,898 688,756 547,222 30,980 9,198 1,541 184,595 320,908 56,094 Aug. 27.. 554,007 402,281 51,899 827 87,208 686,266 545,021 29,335 8,932 2,099 183,283 321,372 54,175 Sept. 24.. 555,096 400,695 54,355 046 88,004 689,717 546,360 29,150 9,360 2,343 181,340 324,167 54,929 Oct. 29.. 556,383 401,492 54,546 345 91,397 695,312 552,649 29,568 9,578 1,952 186,851 324,700 54,250 Nov. 26.. 564,069 405,843 57,476 ,750 102,101 714,136 564,856 32,072 9,527 2,712 194,489 326,056 60,169 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 66,679 116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961 129,625 116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—Dec. 31... 734,516 541,111 54,132 139,272 125,375 906,325 741,665 42,587 10,693 4,799 265,444 418,142 55,988 63,039 14,216 1975—Apr. 16... 733,913 529,350 59,540 145,023 110,950 893,141 720,607 31,291 10,845 4,628 249,373 424,470 65,274 64,578 14,274 June 30... 736,164 526,272 67,833 142,060 125,181 914,781 746,348 41,244 10,252 3,106 261,903 416,962 59,310 65,986 14,320 National member: 1941—Dec. 31... 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1947—Dec. 31... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 318.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 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—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 June 30... 428,167 312,229 37,606 78,331 75,686 536,836 431,646 21,096 6,804 1,723 152,576 242,492 41,954 37,483 4,730 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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— CCllaassssiiffiiccaattiioonn bbyy Securities Total Interbank3 Other Total Num- FFRRSS mmeemmbbeerrsshhiipp Cash lia- Bor- capital ber aanndd FFDDIICC assets 3 bilities row- ac- of iinnssuurraannccee Total Loans U.S. and Total3 Demand ings counts banks l Treas- Other capital De- Time ury 2 ac- mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941— Dec. 31... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 318.. 94,760 66,963 11,196 16,600 25.472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 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, * 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—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 1975—June 30.., 134,759 100,968 12,004 21,787 31,466 179,787 141,995 18,751 2,771 443 48,621 65,654 14,380 12,773 1,064 Nonmember: 1941—Dec. 31... 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1947—Dec. 31... 16,444 4,958 10,039 1,448 4,083 20,691 19,342 262 4 149 12,366 6,558 7 1,271 6,478 1960—Dec. 31... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 318... 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 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—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 1975—June 30.. 173,238 113,074 18,223 41,942 18,029 198,157 172,707 1,397 676 940 60,706 108,816 2,976 15,730 8,526 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 1960—Dec. 31... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 318.. 3,079 2,132 304 642 934 4,365 375 101 40 1,298 756 226 532 184 1971—Dec. 31... 3,147 2,224 239 684 1,551 5,130 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31... 4,865 3,731 349 785 1,794 7,073 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31... 6,192 4,927 316 949 2,010 8,650 591 344 9 1,836 2,215 1,463 524 207 1974—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 1975—June 30.., 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 2,124 3,320 3,110 570 253 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—Dec. 31..., 175,690 119,761 15,530 40,400 21,047 204,051 172,454 2,422 1,445 1,624 63,302 103,661 5,520 15,410 8,685 1975—June 30... 184,963 122,633 18,581 43,750 21.563 214,434 181,021 2,735 1,633 951 62,830 112,136 6,086 16,300 8,779 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; nondeposit trust companies; and U.S. branches of foreign banks. 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. I960. 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, June 30, 6 For the last-Wednesday-of-the-month series, figures for call dates 1975, respectively, member banks exclude and noninsured nonmember are shown for June and December as soon as they became available. banks include 1, 2, 3, and 4 noninsured trust companies that are member 7 Beginning with Dec. 31, 1947, the series was revised; for description, of the Federal Reserve System. see note 4, p. 587, May 1964 BULLETIN. Comparability of figures for classes of banks is affected somewhat by 8 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 • DECEMBER 1975 ASSETS BY CLASS OF BANK, JUNE 30 1975 f (Amounts in millions of dollars) Member banks1 AAllll IInnssuurreedd Large banks AAccccoouunntt ccoommmmeerrcciiaall ccoommmmeerrcciiaall NNoonn-bbaannkkss bbaannkkss mmeemmbbeerr TToottaall New City of Other AAllll ootthheerr bbaannkkss11 York Chicago large City Cash bank balances, items in process 128,716 125,181 107,152 29,694 4,419 38,925 34,114 21,564 Currency and coin 10,102 10,079 7,546 569 121 2,520 4,335 2,556 Reserves with F.R. Banks 26,890 26,890 26,890 5,656 1,800 10,084 9,350 Demand balances with banks in United States 34,278 31,788 19,722 6,940 165 3,710 8,906 ' "i4,556 Other balances with banks in United States 5,727 5,276 3,647 94 115 1,153 2,284 2,080 Balances with banks in foreign countries 2,296 1,833 1,738 438 78 938 285 558 Cash items in process of collection 49,422 49,315 47,610 15,997 2,139 20,518 8,955 1,813 Total securities held—Book value 212,058 209,893 149,728 16,808 5,879 49,992 77,049 62,330 U.S. Treasury 68,191 67,833 49,610 7,368 2,189 17,061 22,992 18,581 Other U.S. Govt, agencies 33,882 33,490 21,213 1,754 570 6,348 12,540 12,669 States and political subdivisions 101,472 101,091 73,762 7,030 2,828 25,087 38,817 27,711 All other securities 8,513 7,479 5,144 657 291 1,496 2,699 3,370 Trade-account securities 6,198 6,188 6,136 2,468 556 2,896 217 62 U.S. Treasury 2,945 2,934 2,909 1,399 344 1,078 88 35 Other U.S. Govt, agencies 941 941 934 239 27 633 35 7 States and political subdivisions 1,907 1,907 1,893 736 117 952 89 14 All other 406 406 400 95 68 233 5 6 Bank investment portfolios 205,860 203,705 143,592 14,340 5,323 47,096 76,832 62,268 U.S. Treasury 65,246 64,899 46,701 5,969 1,845 15,983 22,904 18,545 Other U.S. Govt, agencies 32,941 32,549 20,279 1,515 544 5,715 12,505 12,662 States and political subdivisions 99,566 99,184 71,869 6,294 2,711 24,135 38,729 27,697 All other 8,108 7,073 4,743 562 224 1,264 2,694 3,364 Federal funds sold and securities resale agreements... 38,841 37,383 28,951 1,747 1,263 14,807 11,133 9,891 Commercial banks 34,083 32,625 24,296 852 1,041 11,800 10,604 9,787 Brokers and dealers 3,054 3,054 2,977 108 203 2,195 471 77 Others 1,704 1,704 1,677 787 19 812 59 27 Other loans 496,990 488,888 384,247 75,339 22,512 142,424 143,973 112,742 Real estate loans 131,445 131,246 94,442 7,951 1,332 35,526 49,633 37,003 Secured by farmland 6,105 6,090 2,676 5 2 327 2,342 3,428 Secured by residential 81,360 81,233 59,898 4,265 894 23,532 31,207 21,462 1 - to 4-family residences 74,612 74,489 54,377 3,150 839 20,932 29,456 20,235 FHA insured 5,626 5,610 4,875 233 55 2,632 1,955 752 VA guaranteed 3,167 3,147 2,713 181 20 1,418 1,094 454 Other 65,818 65,732 46,790 2,736 764 16,882 26,407 19,029 Multifamily 6,748 6,744 5,521 1,115 55 2,600 1,751 1,227 FHA insured 762 761 706 136 25 331 214 56 Other 5,986 5,983 4,815 978 30 2,269 1,537 1,171 Secured by other properties 43,981 43,923 31,868 3,681 436 11,667 16,084 12,113 Loans to domestic and foreign banks 11,155 8,644 8,075 3,543 504 3,252 776 3,080 Loans to other financial institutions 32,413 32,164 30,964 11,756 4,720 12,175 2,314 1,449 Loans on securities to brokers and dealers 5,534 5,447 5,373 3,931 659 649 134 161 Other loans for purch./carry securities 3,836 3,818 3,177 516 277 1,497 887 658 Loans to farmers 19,071 19,054 10,768 88 190 2,554 7,935 8,304 Commercial and industrial loans 178,993 174,436 147,242 39,616 12,517 55,802 39,307 31,751 Loans to individuals 101,816 101,512 72,806 4,942 1,540 25,865 40,458 29,010 Instalment loans 79,246 79,033 56,275 3,062 804 20,229 32,180 22,971 Passenger automobilies 32,128 32,026 21,423 421 151 6,621 14,230 10,706 Residential-repair/modernize 5,627 5,611 4,077 202 49 1,717 2,109 1,550 Credit cards and related plans 10,835 10,835 9,551 1,015 399 5,320 2,818 1,284 Charge-account credit cards 8,240 8,240 7,389 742 369 4,181 2,096 851 Check and revolving credit plans 2,595 2,594 2,162 273 29 1,139 722 433 Other retail consumer goods 15,273 15,242 10,661 160 104 3,765 6,632 4,611 Mobile homes 8,807 8,801 6,340 100 48 2,276 3,916 2,467 Other 6,466 6,441 4,321 60 56 1,489 2,716 2,144 Other instalment loans 15,383 15,318 10,563 1,265 101 2,807 6,390 4,820 Single-payment loans to individuals 22,570 22,479 16,531 1,880 736 5,636 8,278 6,039 All other loans 12,726 12,568 11,400 2,995 773 5,103 2,529 1,326 Total loans and securities 747,889 736,164 562,926 93,894 29,654 207,223 232,155 184,963 Fixed assets—Buildings, furniture, real estate 16,254 16,175 12,183 1,263 500 4,894 5,526 4,071 Investments in subsidiaries not consolidated 1,820 1,798 1,777 797 146 754 81 42 Customer acceptances outstanding 9,462 9,223 8,993 4,795 427 3,438 332 469 Other assets 26,917 26,239 23,592 8,889 1,122 9,756 3,825 3,325 Total assets 931,057 914,781 716,623 139,333 36,268 264,990 276,032 214,434 Number of banks 14,573 14,320 5,794 12 9 155 5,618 8,779 1 Member banks exclude and nonmember banks include 4 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 Personalv aluation 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

DECEMBER 1975 • COMMERCIAL BANKS A 17 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1975 (Amounts in millions of dollars) Member banks * All Insured Large banks commercial commercial banks banks Total All other New City of Other York Chicago large City Demand deposits 309,726 306,253 243,210 57,475 9,911 85,372 90,453 Mutual savings banks 1,279 1,151 1,057 483 210 362 Other individuals, partnerships, and corporations. 232,079 231,121 177,344 29,687 7,668 65,847 74,142 U.S. Government 3,117 3,106 2,166 118 42 725 1,280 States and political subdivisions 18,217 18,079 13,074 758 186 3,883 8,247 Foreign governments, central banks, etc 1,555 1,310 1,280 1,088 18 167 6 Commercial banks in United States 34,345 34,019 32,823 16,986 1,593 10,482 3,762 Banks in foreign countries 6,957 6,074 5,967 4,662 152 1,058 95 Certified and officers' checks, etc 12,176 11,393 9,499 3,691 250 2,999 2,558 Time and savings deposits 444,936 440,096 330,431 46,693 16,362 119,708 147,669 Savings deposits Ml, 744 151,463 109,037 6,995 2,385 38,455 61,202 Accumulated for personal loan payments2 338 335 259 74 186 Mutual savings banks 648 627 611 287 17 265 42 Other individuals, partnerships, and corporations. 219,489 216,619 163,751 25,801 10,371 59,106 68,473 U.S. Government 492 492 360 10 184 165 States and political subdivisions 48,219 48,052 34,739 1,421 1,324 15,062 16,932 Foreign governments, central banks, etc 13,445 12,882 12,710 7,956 1,374 3,337 43 Commercial banks in United States 8,449 8,334 7,716 3,205 842 3,048 621 Banks in foreign countries 2,111 1,291 1,248 1,018 48 178 5 Total deposits 754,662 746,348 573,641 104,167 26,272 205,080 238,122 Federal funds purchased and securities sold under agreements to repurchase 56,529 54,835 52,184 13,367 5,845 25,865 7,106 Other liabilities for borrowed money 5,891 4,475 4,150 1,362 26 2,370 392 Mortgage indebtedness 763 761 550 64 4 313 169 Bank acceptances outstanding 10,060 9,814 9,583 5,375 430 3,447 332 Other liabilities 27,627 23,645 18,960 3,535 929 7,789 6,706 Total liabilities 855,533 839,879 659,069 127,870 33,507 244,864 252,827 Minority interest in consolidated subsidiaries 5 4 1 Total reserves on loans/securities 8,963 8,912 7,297 1,685 525 2,761 ,325 R O e th se e r r v r e e s s e f r o v r e b s a o d n d l e o b a t n s s (IRS) 8,6 1 5 2 9 1 8,6 1 1 1 4 9 7,11 6 0 9 1,685 525 1 2,68 1 2 7 ,21 5 8 0 Reserves on securities 182 179 119 61 57 Total capital accounts 66,557 65,986 50,257 9,777 2,236 17,365 20,878 Capital notes and debentures 4,347 4,287 3,467 782 81 1,656 948 Equity capital 62,210 61,699 46,790 8,995 2,155 15,710 19,930 Preferred stock 50 42 24 10 13 Common stock 15,176 15,077 11,187 2,163 568 3,614 4,842 Surplus 25,968 25,816 19,500 3,667 ,143 6,976 7,713 Undivided profits 20,053 19,859 15,441 3,166 399 4,845 7,031 Other capital reserves 963 905 638 44 264 330 Total liabilities, reserves, minority interest, capital accounts 931,057 914,781 716,623 139,333 36,268 264,990 276,032 Demand deposits adjusted 3 222,842 219,813 160,611 24,373 6,136 53,646 76,456 Average total deposits (past 15 days) 734,017 726,164 555,860 96,313 25,508 199,612 234,427 Average total loans (past 15 days) 506,945 497,466 385,936 74,863 22,484 143,273 145,316 Selected ratios: Percentage of totai assets Cash and balances with other banks 13.8 13.7 15.0 21.3 12.2 14.7 12.4 22.8 22.9 20.9 12.1 16.2 18.9 27.9 Total securities held Trading account securities .7 .7 .9 1.8 1.5 U.S. Treasury .3 .3 .4 1.0 .9 .4 States and political subdivisions .2 .2 .3 .5 .3 .4 All other trading account securities .2 .2 .3 .3 Bank investment portfolios 22.1 22.3 20.0 10.3 14.7 17.8 27.8 U.S. Treasury 7.0 7.1 6.5 4.3 5.1 6.0 8.3 States and political subdivisions 10.7 10.8 10.0 4.5 7.5 9.1 14.0 All other portfolio securities 4.4 4.3 3.5 1.5 2.1 2.6 5.5 Other loans and Federal funds sold 57.6 57.5 57.7 55.3 65.6 59.3 56.2 All other assets 5.8 5.8 6.5 11.3 6.1 7.1 3.5 Total loans and securities 80.3 80.5 78.6 67.4 81.8 78.2 84.1 Reserves for loans and securities 1.0 1.0 1.0 1.2 1.4 1.0 Equity capital—Total 6.7 6.7 6.5 6.5 5.9 5.9 7.2 Total capital accounts 7.1 7.2 7.0 7.0 6.2 6.6 7.6 Number of banks 14,573 14,320 5,794 12 155 5,618 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 WEEKLY REPORTING BANKS • DECEMBER 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 culcial Treas- se- and tural Pers. banks ury curi- indus- U.S. U.S. and se- ties trial Treas- Other Treas- Other sales Other curi- ury sees. ury sees. finan. ties sees. sees. cos., etc. Large banks— Total 1974 Nov. 6 399,607 18,050 15,035 1,409 774 832 298,241 129,300 3,733 828 4,043 2,614 10,140 21,71 13 403,173 19,800 15,914 2,344 741 801 298,960 129,147 3,711 1 ,742 3,828 2,622 9,904 21,686 20 400,512 17,426 14,258 1,432 920 816 298,730 129,208 3,718 1 ,946 3,776 2,611 9,980 21,696 27 399,890 17,473 14,340 1,398 885 850 298,712 129,798 3,683 633 4,101 2,587 10,250 21,624 1975 Oct. 1 394,972 17,777 15,030 1,288 632 827 281,571 119.714 3,632 896 3,799 2.258 9,567 19,455 8 394,706 17,985 13,398 2,987 958 642 280,842 119,191 3,619 2,248 3,820 2,260 8,718 19,277 15 396,088 19,671 15,273 2,635 1,057 706 280,758 119,200 3,616 1,499 4,150 2,273 8,697 19,168 22 389,638 15,574 12,898 1,543 533 600 278,168 118,305 3,632 898 3,464 2.259 8,628 19,065 29 389,501 16,422 13,817 1,650 466 489 277,662 118,195 3,590 798 3,659 2,265 8,301 19,012 Nov. 5 400,238 22,822 17,160 3,778 650 1,234 279,896 118,643 3,573 1,829 3,885 2,268 8,322 18,892 12 398,080 21,100 16,144 3,180 744 1,032 279,588 118,879 3,575 838 4,284 2,279 8,561 18,833 1 9 394,882 18,353 14,861 1,833 845 814 278,976 8,591 3,561 1,134 4,269 2,285 8,377 18,792 26 395,313 17,737 14,452 1,918 831 536 279,441 118,886 3,547 835 4,593 2,300 8,536 18,721 New York City 1974 Nov. 6 91,882 1,537 1,374 112 46 75,431 39,423 124 752 2,847 550 3,624 8,536 13 92,588 1,130 979 99 47 76,129 39,481 120 1,444 2,639 553 3,478 8,469 2 27 0 9 9 2 2 , , 8 4 2 4 1 1 1 1 , , 3 7 3 4 5 6 1 1 , , 1 5 7 2 6 6 1 1 0 0 2 0 1 5 0 2 0 7 75 6 , , 9 4 1 3 9 3 3 3 9 9 , , 5 9 4 0 6 9 1 1 2 1 0 9 1,7 5 2 6 7 2 2 2 , , 5 7 0 8 7 5 5 5 4 3 6 8 3 3 , , 6 7 2 5 4 4 8 8 , , 5 52 4 7 9 1975 Oct. 1 88,046 2,240 1,902 296 69,277 36,192 845 2,243 402 3,503 7,498 8 87,467 1,186 1,017 123 69,544 36,061 1,935 2,416 405 2,928 7,371 2 1 2 5 8 8 6 8 , , 5 7 2 0 6 3 2 1 , , 5 9 9 9 0 8 2 1 , , 3 7 9 9 3 8 70 1 1 1 5 2 3 6 6 7 9 , , 9 38 5 6 4 3 3 5 6 , , 8 1 4 0 9 2 1,2 8 1 1 4 8 2 2 , , 2 83 2 9 2 4 3 0 9 2 9 2 2, , 9 8 4 9 4 0 7 7 , , 2 24 9 7 4 29 85,858 1,707 1,522 97 67,885 35,838 742 2,379 404 2,803 7,212 Nov. 5 88,577 1,799 1,031 334 434 69,346 36,097 1,540 2,504 399 2,837 7,141 12 88,063 2,086 1,557 64 465 69,042 36,314 785 2,704 399 3,006 7,153 19 87,671 1,346 91" 56 372 68,661 36,088 1,063 2,768 399 2,826 7,151 26 89,329 2,249 1,985 124 12 128 68,917 36,289 760 3,031 398 2,993 7,069 Outside New York City 1974 Nov. 6. 307,725 16,513 13,661 1.297 769 786 222,810 89,877 3,609 76 1,196 2.064 6,516 13,182 2 1 0 3. . 3 3 1 0 0 7 , ,6 5 9 8 1 5 1 1 8 6, , 0 6 9 7 1 0 1 1 4 3 , , 9 0 3 8 5 2 2 1 , , 2 3 4 3 5 0 7 9 3 1 6 5 7 7 5 6 4 4 2 2 2 22 2 , , 8 2 3 9 1 7 8 8 9 9 , , 6 6 6 6 6 2 3 3 , , 5 5 9 9 1 8 2 21 9 9 8 1 1 , , 1 2 8 6 9 9 2 2 . , 0 0 6 6 5 9 6 6 , , 4 3 2 5 6 6 1 1 3 3 , , 1 2 4 1 7 7 27. 307,449 15,727 12,814 1.298 865 750 222,793 89,889 3,564 71 1,316 2,049 6,496 13,097 1975 Oct. 1 . 306,926 15,537 13.128 1,246 632 531 212,294 83,522 3,546 51 1,556 1.856 6,064 11,957 8. 307,239 16,799 12,381 2,941 958 519 211,298 83,130 3,532 313 1,404 1,855 5,790 11,906 15. 307,385 17,081 12,880 2,620 987 594 211,372 83,098 3,528 285 1,311 1,874 5,807 11,874 22. 303,112 13,576 11,100 1,496 533 447 210,214 82,456 3,543 80 1,242 1.857 5,684 11,818 29. 303,643 14,715 12,295 1,562 466 392 209,777 82,357 3,500 56 1,280 1,861 5,498 11,800 Nov. 5. 311,661 21,023 16.129 3,444 650 800 210,550 82,546 3,486 289 1,381 1,869 5,485 11,751 12. 310,017 19,014 14,587 3,116 744 567 210,546 82,565 3,488 53 1,580 1,880 5,555 11,680 2 19 6 . . 3 3 0 0 7 5 , , 2 9 1 8 1 4 1 1 7 5 , , 0 4 0 8 7 8 1 12 3 , , 4 9 6 4 7 3 1 1 , , 7 7 7 9 7 4 8 8 4 1 5 9 4 4 4 0 2 8 2 21 1 0 0 , , 5 3 2 1 4 5 8 82 2 , , 5 5 9 0 7 3 3 3 , , 4 4 7 6 4 0 7 7 5 1 1 1 , , 5 5 0 6 1 2 1 1 , , 8 9 8 0 6 2 5 5 , , 5 5 5 4 1 3 1 1 1 1 , , 6 6 4 5 1 2 51,595 For notes see page A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 subdivisions instal- govts.2 other Total Bills Total For- ment eign Within 1 to After 1 yr. 5 yrs. 5 yrs. Tax Certif. war- All of rants 3 other partici- All pation4 other 5 Large banks— Total 1974 5 6, , 0 9 8 9 3 4 3 3 5 5 . , 0 1 2 7 6 0 11 ,5;5698 82 1 0 9, ,1 7 1 64 0 2 2 1 1 , , 6 9 0 4 5 8 2 3 , , 9 4 7 7 8 3 3 3 , , 6 7 5 9 6 9 1 10 0 , , 8 8 6 7 8 6 3 3, , 9 9 5 5 1 2 6 6 2 1, , 7 4 1 6 1 5 6 6 , , 4 7 9 8 8 4 4 4 0 1 , , 8 23 2 3 6 2 2, , 5 5 2 4 1 1 1 11 1 , , 9 8 2 4 7 6 Nov. 1 6 3 6,149 34,969 1 ,618 19,556 22,724 3,310 3,562 11,804 4,048 61,632 6,515 40,755 2,509 11,853 20 6,171 35,006 1,622 19,700 21,951 2,754 3,469 11,896 3,832 61,754 6,422 40,874 2,539 11,919 27 1975 34,561 1,405 18,538 35,316 10,073 5,460 16,902 2,! 60,308 6,395 39,895 2,409 11,609 Oct. 1 34,530 1,415 18,128 35,604 10,205 5,361 17,003 3,035 60,275 6,323 39,814 2,365 11,773 8 34,519 1,453 18,457 34,892 9,820 5,374 16,819 2,879 60,767 6,709 39,824 2,367 11,867 15 34,565 1,477 18,080 35,572 9,552 5,396 17,790 2,834 60,324 6,409 39,666 2,328 11,921 22 34,647 1,539 17,985 35,011 9,022 5,483 17,782 2,724 60,406 6,689 39,775 2,341 11,601 29 6,013 34,642 1,495 18,467 36,825 9,686 5,796 18,475 2,i 60,695 6,742 39,743 2,349 11,861 Nov. 5 5,781 34,645 1,461 18,507 36,410 9,371 5,736 18,526 2,777 60,982 6,889 39,930 2,358 11,805 12 5,614 34,638 1,451 18,400 37,059 9,993 5,840 18,011 3,215 60,494 6,802 39,686 2,319 11,687 19 5,728 34,687 1,491 18,219 37,436 10,538 6,141 17,688 3,069 60,699 6,832 39,725 2,360 11,782 26 New York City 1974 2,847 2,637 861 4,295 4,435 876 338 1,825 1,396 10,479 2,011 5,538 524 2,406 Nov. 6 2,941 2,634 873 4,509 4,728 1,116 358 1,863 1 ,391 10,601 1,870 5,843 502 2,386 13 3,067 2,639 865 4,245 4,776 956 386 2,272 1,162 10,277 1,843 5,652 501 2,281 20 3,021 2,660 872 4,140 4,562 633 421 2,314 1,194 10,214 1,813 5,586 512 2,303 27 1975 2,511 2.588 522 3,904 2,304 665 3,722 693 9,145 1,340 5,459 501 1,845 Oct. 11 2,583 2,591 517 3,814 2,536 647 3,742 838 8,974 1,291 5,410 496 1,777 8 2,576 2,585 546 3,950 2,507 644 3,791 703 9,082 1,275 5,448 498 1,861 15 2,550 2.589 585 3,752 2,183 584 4,191 629 8,987 1,254 5,401 496 1,836 22 2,503 2,596 644 3,840 1,932 574 4,199 571 8,990 1 ,317 5,406 493 1,774 29 2 2, , 4 6 7 9 7 5 2 2 , , 6 5 0 9 4 3 5 54 7 7 5 4 4, , 1 0 1 4 4 3 7 8 , , 5 3 9 0 5 4 2 1 , , 2 7 9 76 6 7 7 4 1 1 7 4 4 , , 5 4 8 4 2 8 6 6 5 8 4 5 9 9 , , 3 12 4 8 0 1 1, , 4 3 0 0 3 8 5 5, , 5 4 6 1 1 5 4 4 9 8 6 8 11,,898170 Nov. 1 5 2 2,351 2,600 519 3,979 8,486 2,408 747 4,391 940 9,178 1 ,344 5,471 487 1,876 19 2,419 2,621 568 3,834 8,942 2,865 813 4,400 864 9,221 1 ,372 5,412 482 1,955 26 Outside New York City 1974 3,147 32,533 707 15,469 17,170 2,102 3,461 9,051 2,556 51,232 4,487 35,288 2,017 9,440 .Nov. 6 3,142 32,392 725 15,601 17,220 2,357 3,298 9,005 2,560 51,864 4,914 35,390 2,019 9,541 13 3,082 32,330 753 15,311 17,948 2,354 3,176 9,532 2,886 51,355 4,672 35,103 2,008 9,572 20 3,150 32,346 750 15,560 17,389 2,121 3,048 9,582 2,638 51,540 4,609 35,288 2,027 9,616 27 1975 3,316 31,973 883 14,634 27,932 7,769 4,795 13,180 2,188 51,163 5,055 34,436 1,908 9,764 Oct. 3,355 31,939 898 14,314 27,841 7,669 4,714 13,261 2,197 51,301 5,032 34,404 1,869 9,996 3,350 31,934 907 14,507 27,247 7,313 4,730 13,028 2,176 51,685 5,434 34,376 1,869 10,006 . . .15 3.308 31,976 892 14,328 27,985 7,369 4,812 13,599 2,205 51,337 5,155 34,265 1,832 10,085 . . .22 3,279 32,051 895 14,145 27,735 7,090 4,909 13,583 2,153 51,416 5,372 34,369 1,848 9,827 . . .29 3,31 32,049 920 14,424 28,521 7,390 5,055 13,893 2,183 51,567 5,434 34,328 1,861 9,944 Nov. 5 3,304 32,041 914 14,393 28,815 7,595 5,019 14,078 2,123 51,642 5,486 34,369 1,862 9,925 12 3,263 32,038 932 14,421 28,573 7,585 5,093 13,620 2,275 51,316 5,458 34,215 1,832 9,811 19 3.309 32,066 923 14,385 28,494 7,673 5,328 13,288 2,205 51,478 5,460 34,313 1,878 9,827 26 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 WEEKLY REPORTING BANKS • DECEMBER 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Cash Bal- Investitems Re- CCuurr-- ances ments Total in serves rreennccyy with in sub- Other assets/ Domestic Wednesday process with aanndd do- sidiar- assets total States interbank of F.R. ccooiinn mestic ies not liabil- and collec- Banks banks consol- tites polit- Fortion idated Total ical U.S. eign 6 IPC sub- Covt. Com- Mutual govts,, divi- mer- sav- etc. 2 sions cial ings Large banks— Total 1974 Nov. 6 38,780 25,306 4,258 11,957 1,610 30,736 512.254 166,316 117,445 5,942 2,225 26,133 807 1 ,174 13 38,139 21,313 4,803 11,572 1,629 31,472 512,101 164,764 120,705 5,931 1 ,473 22,779 723 1,250 20 32,196 24,098 4,764 11,059 1,638 30,682 504,949 158,320 114,800 6,179 2.260 21,752 571 1 ,072 27 37,868 24,798 4,482 11,260 1,599 31,893 511,790 165,295 118,647 6,046 1 ;852 24,901 573 1 ,055 1975 Oct. 1 36,813 21,410 4,768 13,277 1,794 38,661 511,695 167,744 119,800 6,496 1,070 25,790 912 1,223 8 33,427 19,373 4,640 11,965 1,800 37,588 503,499 160,314 117,589 5,731 894 23,048 837 1 ,119 15 41,706 20,764 4,935 14,116 1,801 37,664 517,074 173,414 125,680 6,161 1,635 26,153 832 1,102 22 32,611 21,764 5,008 12,469 1,792 37,881 501 ,163 159,326 115,960 5,817 1,442 23,341 754 1,081 29 31,801 22,330 5,155 11,528 1,794 38,055 500,164 159,303 116,180 5,807 1 ,249 22,107 781 1,141 Nov. 5 37,333 18,722 4,387 14,366 1,812 38,622 515,480 173,281 121,843 6,403 2,286 29,169 884 1,129 12 41,739 23,657 5,008 13,498 1,820 39,995 523,797 175,008 125,789 6,187 1,374 27,803 795 1 ,126 19 33,005 21,532 5,126 11,534 1,836 38,866 506,781 161,456 118,014 6,095 2,233 22,750 672 1,037 26 38,022 24,022 4,855 11,973 1,827 38,882 514,894 168,020 121,447 6,301 1,868 24,479 677 1 ,174 New York City 1974 Nov. 14,646 7,077 511 5,267 722 10,212 130,317 49,574 26,943 274 475 13,056 414 983 13,549 7,368 543 4,930 723 10,633 130,334 47,283 27,792 342 168 10,473 386 1 ,028 10,790 6,619 531 5,327 724 9,930 126,742 44,481 25,207 303 397 10,299 271 887 14,828 6,376 474 4,901 726 10,649 130,395 49,150 26,544 338 273 13,475 289 869 1975 Oct. 13,607 7,238 508 6,466 802 12,949 129,616 49,039 26,434 418 76 13,276 542 986 12,200 5,623 515 5,372 801 12,918 124,896 45,372 26,226 345 62 10,965 459 903 15. 14,176 6,255 518 6,392 801 12,384 129,229 48,961 27,610 415 223 12,738 454 860 22. 10,743 5,566 525 5,685 801 12,941 122,787 44,208 24,421 310 171 11,754 418 841 29. 11,865 7,283 523 4,993 803 12,439 123,764 45,020 25,321 232 127 10,567 427 904 Nov. 5. 12,700 7,834 506 5,666 804 12,197 128,284 49,440 26,527 389 309 14,316 453 904 12. 14,525 7,766 567 6,427 805 12,894 131,047 50,163 27,066 292 177 14,375 397 913 19. 10,588 5,748 601 4,898 810 11,790 122,106 43,233 24,800 188 342 10,674 325 842 26. 13,605 6,548 549 5,282 807 12,227 128,347 47,365 26,196 232 324 12,119 342 960 Outside New York City 1974 Nov. 6. 24,134 18,229 3,747 6,690 888 20,524 381,937 116,742 90,502 5,668 1,750 13,077 393 191 13. 24,590 13,945 4,260 6,642 906 20,839 381,767 117,481 92,913 5,589 1,305 12,306 337 222 20. 21,406 17,479 4,233 5,732 914 20,752 378,207 113,839 89,593 5,876 1,863 11,453 300 185 27. 23,040 18,422 4,008 6,359 873 21,244 381,395 116,145 92,103 5,708 1,579 11,426 284 186 1975 Oct. 1 . 23,206 14,172 4,260 6,811 992 25,712 382,079 118,705 93,366 6,078 994 12,514 370 237 21,227 13,750 4,125 6,593 999 24,670 378,603 114,942 91,363 5,386 832 12,083 378 216 15. 27,530 14,509 4,417 7,724 1,000 25,280 387,845 124,453 98,070 5,746 1,412 13,415 378 242 22. 21,868 16,198 4,483 6,784 991 24,940 378,376 115,118 91,539 5,507 1,271 11,587 336 240 29. 19,936 15,047 4,632 6,535 991 25,616 376,400 114,283 90,859 5,575 1,122 11,540 354 237 Nov. . 24,633 10,888 3,881 8,700 1,008 26,425 387,196 123,841 95,316 6,014 1,977 14,853 431 225 , 27,214 15,891 4,441 7,071 1,015 27,101 392,750 124,845 98,723 5,895 1,197 13,428 398 213 . 22,417 15,784 4,525 6,636 1,026 27,076 384,675 118,223 93,214 5,907 1,891 12,076 347 195 . 24,417 17,474 4,306 6,691 1,020 26,655 386,547 120,655 95,251 6,069 1,544 12,360 335 214 For notes see page A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 Federal Other Re- Total IPC funds liabili- serves capital Certi- States pur- ties, for ac- Wednesday fied and Do- chased, etc. 8 loans t counts and polit- mes- For- etc. 7 F.R. offi- Total 6 ical tic eign Banks Other cers' Sav- sub- inter- govts.2 checks ings divi- bank sions Large banks— Total 1974 7,641 219,310 57,586 117,755 24,000 7,230 10,859 55,887 476 5,176 25,843 5,193 33,989 Nov. 6 6,772 219,194 57,661 117,520 23,914 7,194 11,051 57,545 311 5,054 26,028 5,190 33,952 13 6,346 218,280 57,748 116,822 23,812 7,142 10,868 55,196 2,243 4,983 26,786 5,196 33,882 20 7,107 218,965 57,809 117,626 23,715 7,251 10,600 55,122 1,456 4,892 26,989 5,209 33,800 27 1975 7,277 225,261 65,601 116,166 21,950 7,928 12,241 48,443 393 3,962 23,872 5,781 36,170 Oct. 1 6,215 226,109 65,729 116,309 22,168 8,064 12,508 47,382 38 4,102 23,499 5,800 36,185 8 6,809 224,886 65,767 115,368 22,035 8,053 12,308 47,821 353 4,113 24,543 5,778 36,091 15 6,128 225,568 65,931 115,848 22,089 8,096 12,249 45,350 842 4,195 23,973 5,743 36,095 22 7,346 224,957 65,835 115,533 22,145 8,028 12,071 46,425 3 3,916 23,586 5,755 36,148 29 6,554 223,641 66,045 114,809 21,904 7,792 11,760 48,738 3,773 23,753 5,822 36,397 Nov. 5 6,739 224,435 66,566 115,281 21,615 8,030 11,644 53,860 30 3,852 24,350 5,808 36,383 12 5,928 224,726 67,004 115,311 21,596 8,025 11,479 50,076 45 3,925 24,391 5,805 36,283 19 7,151 225,020 67,196 115,495 21,520 8,034 11,489 51,083 130 4,052 24,575 5,771 36,159 26 New York City 1974 3,738 46,386 4,967 27,657 1,874 4,100 6,453 13,528 2,030 8,482 1,432 8,885 Nov. 6 3,292 46,186 4,991 27,340 1,900 4,090 6,539 16,100 2,019 8,332 1.427 8,887 .. 13 3,056 45,786 4,999 27,186 1,833 4,020 6,414 13,962 ,340 1,961 8,905 1.428 8,879 20 3,534 46,413 4,994 27,710 1,844 4,136 6,303 13,201 575 2,035 8,701 1,447 8,873 27 1975 3,472 45,156 5,733 26,280 1,124 3,183 7,928 13,078 2,001 8,862 1,681 9,799 Oct. 1 2,924 45,863 5,716 26,731 1,089 3,323 8,146 11,303 1,981 8,897 1,672 9,808 8 3,214 45,405 5,712 26,376 1,052 3,354 8,036 11,277 275 1,995 9,880 1,656 9,779 15 2,793 45,597 5,727 26,556 1,040 3,416 7,984 9,895 680 2,106 8,895 1,621 9.784 22 4,116 45,218 5,730 26,335 1,046 3,428 7,827 11,681 1,835 8,583 1,641 9.785 29 2,846 44,285 5,722 25,791 1,030 3,308 7,582 12,815 1,835 8,403 1.683 9,822 Nov. 5 3,114 44,435 5,794 25,863 948 3,321 7,685 14,580 1,942 8,396 1.684 9,846 12 2,641 44,033 5,823 25,561 965 3,270 7,591 12,776 2,001 8,533 1,689 9,840 19 3,605 44,118 5,830 25,652 978 3,189 7,667 14,625 110 2,078 8,545 1,678 9,827 26 Outside New York City 1974 3,903 172,924 52,619 90,098 22,126 3,130 4,406 42,359 476 3,146 17,361 3.761 25,104 .Nov. 6 3,480 173,008 52,670 90,180 22,014 3,104 4,512 41,445 311 3,035 17,596 3,763 25,065 13 3,290 172,494 52,749 89,636 21,979 3,122 4,454 41,234 903 3,022 17,881 3,768 25,003 20 3,573 172,552 52,815 89,916 21,871 3,115 4,297 41,921 881 2,857 18,288 3.762 24,927 27 1975 3,805 180,105 59,868 89,886 20,826 4,745 4,313 35,365 393 1,961 15,010 4,100 26,371 .Oct. 3,291 180,246 60,013 89,578 21,079 4,741 4,362 36,079 38 2,121 14,602 4,128 26,377 3,595 179,481 60,055 88,992 20,983 4,699 4,272 36,544 78 2,118 14,663 4,122 26,312 3,335 179,971 60,204 89,292 21,049 4,680 4,265 35,455 162 2,089 15,078 4,122 26,31 3,230 179,739 60,105 89,198 21,099 4,600 4,244 34,744 3 2,081 15,003 4,114 26,363 3 3, , 6 7 2 0 5 8 1 1 7 8 9 0 , ,0 35 0 6 0 6 6 0 0 , , 3 7 2 7 3 2 8 8 9 9 , , 0 4 1 1 8 8 2 20 0 , , 6 8 6 7 7 4 4 4 , , 4 7 8 0 4 9 4 3 , , 1 9 7 5 8 9 3 3 5 9 , , 9 2 2 8 3 0 1 1 , , 9 9 3 1 8 0 1 15 5 , , 9 3 5 5 4 0 4 4 , , 1 1 3 2 9 4 2 2 6 6 , , 5 5 7 3 5 7 .Nov. 1 5 2 3,287 180,693 61,181 89,750 20,631 4,755 3,888, 37,300 1,924 15,858 4,116 26,443 19 3,546 180,902 61,366 89,843 20,542 4,845 3,822 36,458 1,974 16,030 4,093 26,332 26 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 WEEKLY REPORTING BANKS • DECEMBER 1975 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD's All other large Total included in time time deposits12 Gross Wednesday Total loans De- and savings deposits11 Individ- Part- liabililoans and mand uals ner- Do- ties of (gross) invest- deposits and ships mestic banks ad- ments ad- non- and govern- All to justed9 (gross) justed 10 Issued Issued Issued Issued profit cor- mental other14 their ad- Total to to Total to to orga- pora- units foreign justed9 IPC's others IPC's others niza- tions for branches tions profit i3 Large banks— Total 1974 Nov. 6 298,020 381,336 99,178 87,088 60,163 26,925 57,587 1 ,969 2 1 0 3 2 2 9 9 9 8 , , 5 6 8 9 1 6 3 38 8 3 3 , , 0 9 5 9 2 4 1 1 0 0 2 2 , ,1 3 1 73 2 8 8 7 6 , , 1 2 4 9 6 8 5 5 9 9, , 3 9 7 3 1 8 2 2 6 7 , , 9 2 2 0 7 8 5 5 7 7 , , 6 7 5 5 7 0 2 1 , , 3 8 1 9 5 7 27 298,518 382,223 100,674 87,351 60,352 26,999 57 2,661 1975 Oct. 1 281,768 377,392 104,071 83,996 56,373 27,623 33,019 18,273 14,746 65,599 2,723 8 283,030 378,909 102,945 84,486 56,510 27,976 33,387 18,370 15,017 65,730 3,085 15 282,764 378,423 103,920 83,277 55,622 27,655 33,345 18,341 15,004 65,767 4,233 22 278,422 374,318 101,932 83,701 56,078 27,623 33,395 18,370 15,025 65,932 3,232 29 277,964 373,381 104,146 83,305 55,948 27,357 33,411 18,375 15,036 65,835 2,916 Nov. 1 5 2 2 2 8 8 2 3 , , 1 2 8 5 5 5 3 3 7 8 9 0 , ,7 5 7 7 5 7 1 1 0 0 4 4 , ,0 4 9 9 2 3 8 8 2 2 , ,8 1 6 06 0 5 5 5 5 , , 3 8 0 3 8 6 2 2 6 7 , , 7 0 9 2 8 4 3 3 3 3 , , 3 0 3 2 2 3 1 1 8 8 , , 5 4 3 9 3 0 1 1 4 4 , , 8 4 4 9 2 0 6 6 6 6 , , 0 1 4 " 3 " 78 242 58 3 3, , 1 4 4 1 5 3 1 9 280,254 377,807 103,468 82,716 55,804 26,912 32,913 18,457 14,456 66,432 226 281 63 3,873 26 280,436 378,571 103,651 82,577 55,678 26,899 32,722 18,454 14,268 66,496 383 247 68 3,511 New York City 1974 Nov. 6 74,030 88,944 21,397 29,532 19,858 9,674 4,967 1,110 13 74,693 90,022 23,093 29,310 19,499 9,811 4,991 849 2 0 75,027 90,080 22,995 28,901 19,345 9,556 4,999 1 ,146 27 74,560 89,336 20,574 29,777 20,017 9,760 4,994 1 ,274 1975 Oct. 1 68,439 84,968 22,080 29,427 19,124 10,303 7,522 4,743 2,779 5,733 1,923 8 68,725 85,462 22,145 30,248 19,605 10,643 7,466 4,718 2,748 5,716 1,991 15 68,590 85,317 21,824 29,828 19,237 10,591 7,417 4,717 2,700 5,712 3,472 22 67,178 83,752 21,540 30,066 19,503 10,563 7,368 4,651 2,717 5,727 2,077 29 67,165 83,431 22,461 29,846 19,439 10,407 7,295 4,581 2,714 5,730 2,071 Nov. 5 69,203 86,635 22,115 29,118 18,940 10,178 7,217 4,636 2,581 5,722 2,313 12 68,645 85,580 21,086 29,407 19,050 10,357 7,017 4,602 2,415 5,741 1 23 29 2,202 1 9 68,211 85,875 21,629 29,026 18,817 10,209 6,952 4,533 2,419 5,758 4 30 31 2,885 26 68,283 86,446 21,317 29,138 18,865 10,273 6,890 4,546 2,344 5,752 11 31 36 2,440 Outside New York City 1974 Nov. 6 223,990 292,392 77,781 57,556 40,305 17,251 52,620 859 13 224, F 293,972 79,280 57,836 40,439 17,397 52,666 1,048 2 0 223,669 292,972 79,117 57,397 40,026 17,371 52,751 1,169 27 223,958 292,887 80,100 57,574 40,335 17,239 52,814 1 ,387 1975 Oct. 1 213,329 292,424 81,991 54,569 37,249 17,320 25,497 13,530 11,967 59,866 800 8 214,305 293,447 80,800 54,238 36,905 17,333 25,921 13,652 12,269 60,014 1 ,094 15 214,174 293,106 82,096 53,449 36,385 17,064 25,928 13,624 12,304 60,055 761 22 211,244 290,566 80,392 53,635 36,575 17,060 26,027 13,719 12,308 60,205 1 ,155 29 210,799 289,950 81,685 53,459 36,509 16,950 26,116 13,794 12,322 60,105 845 Nov. 5 214,052 294,140 82,378 52,988 36,368 16,620 26,115 13,854 12,261 60,321 1 ,100 12 213,540 293,997 83,006 53,453 36,786 16,667 26,006 13,931 12,075 60,448 77 219 29 943 19 212,043 291,932 81,839 53,690 36,987 16,703 25,961 13,924 12,037 60,674 222 251 32 988 26 212,153 292,125 82,334 53,439 36,813 16,626 25,832 13,908 11,924 60,744 372 216 32 1,071 1 Includes securities purchased under agreements to resell. 11 Certificates of deposit issued in denominations of $100,000 or more. 2 Includes official institutions and so forth. 12 All other time deposits issued in denominations of $100,000 or more 3 Includes short-term notes and bills. (not included in large negotiable CD's). 4 Federal agencies only. 13 Other than commercial banks. 5 Includes corporate stocks. 14 Domestic and foreign commercial banks, and official international 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. organizations. 7 Includes securities sold under agreements to repurchase. t Reserves for securities, not shown separately in this issue, were as 8 Includes minority interest in consolidated subsidiaries. follows (in millions of dollars) for all reporting banks: Nov. 5, 75; Nov. 9 Exclusive of loans and Federal funds transactions with domestic com- 12, 71; Nov. 19, 74; and Nov. 26, 84. Such reserves at New York City mercial banks. banks were $1 million each week. 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 1975 1974 Nov. Nov. Nov. Nov. Oct. 1st 2nd 26 19 12 5 29 Nov. Oct. Sept. III II I half half Durable goods manufacturing: Primary metals 2,052 2,043 2,041 2,032 1,979 73 -31 24 -13 -23 41 18 140 Machinery 5,833 5,884 5,933 5,972 6,066 -233 -474 -296 -887 ^642 -672 -1,314 222 Transportation equipment 3,295 3,260 3,209 3,161 3,150 145 -162 19 -198 -296 -6 -302 705 Other fabricated metal products... 2,108 2,164 2,208 2,231 2,272 -164 -174 6 -277 -211 23 -188 75 Other durable goods 33,,559977 33,,662233 33,,771188 3,726 33,,775599 -162 -208 -25 -174 -316 -402 -718 247 Nondurable goods manufacturing: Food, liquor, and tobacco 3,522 3,513 3,504 3,407 3,369 153 44 120 13 -519 -1,090 -1,609 984 Textiles, apparel, and leather 2,872 2,915 2,907 2,984 2,956 -84 -212 -72 -55 -148 -139 -287 -618 Petroleum refining 2,508 2,501 2,672 2,610 2,560 -52 -36 56 118 283 -55 228 967 Chemicals and rubber 2,652 2,665 2,764 2,741 2,820 -168 -49 95 -253 -321 61 -260 256 Other nondurable goods 11,,886677 1,863 11,,990055 11,,991144 11,,993388 -71 -137 30 -148 10 -293 -283 23 Mining, including crude petroleum and natural gas 5,281 5,260 5,232 5,285 5,301 -20 137 153 285 109 -267 -158 846 Trade: Commodity dealers 1,555 1,532 1,556 1,500 1,374 181 132 114 137 -328 -644 -972 508 Other wholesale 5,513 5,520 5,559 5,525 5,581 -68 39 -69 -78 -534 -574 -1 ,108 484 Retail 6,351 6,387 6,340 6,278 6,371 -20 372 -104 -310 -212 -186 -398 -465 Transportation 5,894 5,906 5,969 5,989 5,965 -71 24 -47 -122 -142 -181 -323 283 Communication 1,986 1,951 1,980 2,044 2,019 -33 -14 -72 -111 17 -372 -355 -2 Other public utilities 6,931 6,918 6,957 7,004 6,896 35 -68 21 -231 -404 -1,019 -1,423 1,697 Construction 5,277 5,339 5,310 5,339 5,395 -118 -109 -28 -57 -77 -545 -622 36 Services 10,515 10,509 10,483 10,491 10,498 17 -41 '-1 -295 -388 -732 -1,120 304 All other domestic loans 9,498 9,381 9,474 9,520 9,331 167 -444 23 15 -65 -307 -372 744 Bankers acceptances 3,784 3,541 3,083 2,842 2,622 1,162 532 81 -170 28 571 599 -56 Foreign commercial and industrial loans 5,110 5,048 5,126 5,101 5,047 63 -19 rl 58 r535 233 61 294 -447 Total classified loans 9988,,000011 9977,,772233 9977,,993300 97,696 9977,,226699 732 -898 rl 86 rr--22,,227766 --33,,994466 --66,,772277 --1100,,667733 66,,993333 Comm. paper included in total classified loans1 240 Total commercial and industrial loans of large commercial banks 118,886 118,591 118,879 118,643 118,195 691 -811 174 -2,879 -3,845 -6,236 -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 1975 1974 1975 Nov. Oct. Sept. Aug. July June May Apr. Mar. 1st 26 29 24 27 30 25 28 30 26 III II I IV half Durable goods manufacturing: Primary metals 1,381 1,320 1,338 1,286 1,269 1,288 1,280 1,323 1,284 50 4 74 77 78 Machinery 3,451 3,538 3,737 3,825 3,864 3,977 4,269 4,302 4,071 -240 -94 -74 249 -168 Transportation-equipment 1,727 1,624 1,693 1,722 1,725 1,740 1,726 1,705 1,672 -47 68 -1 138 67 Other fabricated metal products 1,087 1,175 1,268 1,228 1,196 1,222 1,245 1,280 1,312 46 -90 115 131 25 Other durable goods 1,905 1,950 2,012 2,042 2,058 2,090 2,122 2,210 2,251 -78 -161 -140 123 -301 Nondurable goods manufacturing: Food, liquor, and tobacco 1,544 1,451 1,471 1,461 1,440 1,514 1,616 1,571 1,561 -43 -47 -202 114 -249 Textiles, apparel, and leather 1,072 1,074 1,103 1,077 1,116 1,095 1,075 1,091 1,158 8 -63 13 -6 -50 Petroleum refining 1,860 1,914 1,967 1,889 1,828 1,709 1,611 1,617 1,483 258 226 -35 421 191 Chemicals and rubber. 1,549 1,605 1,665 1,645 1,678 1,762 1,784 1,814 1,846 -97 -84 -32 100 -116 Other nondurable goods. 955 995 1,056 1,023 1,085 1,143 1,114 1,126 1,130 -87 13 -105 31 -92 Mining, including crude petroleum and natural gas 3,867 3,896 3,847 3,754 3,801 3,734 3,646 3,626 3,537 113 197 -164 362 33 Trade: Commodity dealers. 168 162 150 148 152 148 140 142 150 2 -2 -5 16 -7 Other wholesale. 1,308 1,403 1,319 1,371 1,344 1,329 1,344 1,387 1,450 -10 -121 -42 43 -163 Retail 2,115 2,150 2,153 2,139 2,111 2,136 2,143 2,192 2,283 r17 -147 -311 67 -458 Transportation 4,324 4,420 4,391 4,405 4,399 4,425 4,424 4,492 4,524 -34 -99 -26 201 -125 Communication 1,112 1,122 1,132 1,149 1,136 1,133 1,159 1,148 1,135 -1 -2 53 53 51 Other public utilities 3,942 4,027 3,966 3,902 4,018 4,045 4,047 4,017 4,034 -79 11 71 291 82 Construction 2,207 2,267 2,359 2,367 2,360 2,314 2,291 2,272 2,197 45 117 -97 22 20 Services 5,082 5,097 5,122 5,010 5,155 5,140 5,246 5,352 5,430 r— 18 -290 -102 182 -392 All other domestic loans ... 3,116 3,054 3,244 3,257 3,232 3,258 3,186 3,210 3,082 -14 176 -142 102 34 Foreign commercial and industrial loans. 2,851 2,834 2,763 2,695 2,676 2,594 2,547 2,596 2,528 169 66 71 56 137 Total loans 46,623 47,078 47,756 47,395 47,643 47,796 48,015 48,473 48,118 -40 -322 -1,081 2,773 -1,403 1 New item to be reported as of the last Wednesday of each month. For description of series see article "Revised Series on Commercial and Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209. NOTE.—About 160 weekly reporting banks are included in this series; Commercial and industrial "term" loans are all outstanding loans with these banks classify by industry, commercial and industrial loans amount- an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 DEMAND DEPOSIT OWNERSHIP • DECEMBER 1975 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdei 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 AH insured commercial banks: 1970 Dec 17.3 92.7 53.6 1.3 10.3 175.1 1971 Sept 17.9 91.5 57.5 1.2 9.7 177.9 18.5 98.4 58.6 1.3 10.7 187.5 1972 Mar 20.2 92.6 54.7 1.4 12.3 181.2 17.9 97.6 60.5 1.4 11.0 188.4 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973 Mar 18.6 102.8 65.1 1.7 11.8 200.0 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 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 Sept 19.0 118.7 76.5 2.2 10.6 227.0 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—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 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 Aug 14.4 64.6 29.1 2.0 5.9 116.1 Sept 14.7 65.5 29.6 2.1 6.2 118.1 Oct.® 15.1 66.9 29.1 2.2 6.3 119.6 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE.—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec, 31, Apr. 16, June 30, Class of Dec. 31, Dec, 31, Apr. 16, June 30, bank 1973 1974 1975 1975 bank 1973 1974 1975 1975 All commercial.... 507 389 338 All member—Cont. I N n a s t u i r o e n d a l member 5 28 0 8 3 2 3 3 8 6 7 2 3 2 6 4 3 2 3 2 3 3 5 O Al t l h o er t h l e a r r g m e e b m an b k er s 1 i 29 5 4 8 20 69 6 1 7 88 3 1 7 8 4 6 State member.... 64 39 37 36 All nonmember 155 115 102 79 All member 352 275 261 260 Insured 152 112 102 76 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-14; member" parallel the previous "Reserve City" (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 City and the City of Chicago) and "Country" categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for "Time deposits" 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

DECEMBER 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 institutions * By type of loan Date Total Commercial Real and estate industrial 1975—Aug. 6 4,470 2,758 195 2 13 0 4,510 2,794 195 4,463 2,764 195 27, 4,479 2,757 198 Sept. 3, 4,420 2,703 198 10, 4,446 2,741 198 17. 4,479 2,775 198 24, 4,496 r2,761 199 Oct. 1, 4,541 2,814 198 8. 4,655 2,825 199 ban 1 k T o a f b fi a li n a k te 's s o o w f n t h f e o r b e a ig n n k , b t r h a e n c b h a e n s k , 's n o h n o c l o d n in s g o l c id o a m te p d a ny n o ( n if - 2 1 2 5. . r4 4 , , 7 6 4 7 1 4 r2 2 , , 9 8 0 6 8 7 1 1 9 9 8 9 not a bank), and nonconsolidated nonbank subsidiaries of 29, r4,742 r2,930 198 the holding company. NOTE.—Series changed on Aug. 28,1974. For a comparison Nov. 5. 4,771 2,893 197 of the old and new data for that date, see p. 741 of the Oct. 12. 4,716 2,869 205 1974 BULLETIN. Revised figures received since Oct. 1974 19. 4,740 2,877 205 that affect that comparison are shown in note 2 to this table 26. 4,701 2,846 205 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— companies1 Non- All finan- Accepting banks F.R. Banks issuers cial Total Im- Ex- Dealer- Di- com- Dealer- Di- Others ports ports placed 2 rectly- panies4 placed rectly- For- into from placed3 placed Total Own Bills Own eign United United bills bought acct. corr.6 States States 1 1 3 7 , , 6 0 4 8 5 5 2 2 . , 3 7 3 9 2 0 1 1 0 2 , , 5 1 5 8 6 4 2J 7 57 4 3 , , 3 6 1 0 7 3 1 1 , , 1 9 9 0 8 6 1,4 9 4 8 7 3 4 2 5 1 9 5 1 1 9 6 3 4 1 1 9 5 1 6 2 2, , 0 0 9 2 0 2 1,0 9 8 97 6 9 8 8 2 9 9 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 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 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 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 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 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 r49,166 5.333 r31,174 12,659 r2,107 r6,525 16,035 3,347 2,942 405 504 1,459 10,724 3,526 3,806 '51,490 5,242 r32,245 14,003 rl ,970 r6,484 16,882 3,291 2,872 419 218 2,037 11,335 3,793 3,759 r51,954 4,860 r32,562 14,532 rl,875 r6,769 17,553 3,789 3,290 499 611 1,756 11,398 3,810 3,709 r49,144 4,611 r31,839 12,694 '1,800 r6,518 18,484 4,226 4,685 542 999 1,109 12,150 4,023 4,067 r51,675 5,029 r31,998 14,648 rl,799 '6,774 18,602 4,357 3,903 454 966 560 12,718 4,120 4,314 r52,403 5,167 r32,504 14,732 rl,778 '7,305 18,579 4,864 4,370 494 993 325 12,398 3,974 4,210 r50,811 5,342 r31,205 14,264 rl,673 r7,256 18,730 4.773 4,085 688 665 263 13,029 3,845 4,296 '51,605 5,461 r32,126 14,018 rl,601 '6,984 18,727 4,485 3,900 585 1,185 235 13,034 3,690 4,206 '51,297 5,889 r32,801 12,607 rl,529 '7,075 18,108 4,450 3,892 558 865 234 12,559 3,665 4,186 r48,742 5,604 r31,093 12,045 rl,547 '7,207 17,740 4.774 4,224 550 682 319 11,965 3,466 4,080 49,331 6,018 31,241 12,072 1,635 7,016 16,930 4,778 4,275 503 685 329 11,138 3,474 3,865 49,783 5,645 32,145 11,993 1,493 7,365 16,456 4,546 3,988 558 840 304 10,766 3,305 3,806 48,246 5,574 30,485 12,187 1,514 7,306 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 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, manufacsales, 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 • DECEMBER 1975 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Monthly average rate 1974—Apr. 2 1 1 5 1 9 11 1 00 0 % % 1975—Jan. 2 1 9 5 0 , 1 1 9 0 0 % % 1975—July 2 1 8 8 . . 7 77 % %% 1974--S N O e c o p t v . t . . 1 1 1 2 1 0 . . . 0 6 8 0 8 3 28, 9% 7% Dec. 10.50 May 2 103/4 Aug. 12. 160 11 ll 11 l / % Feb. 1 3 0, , 9 9 % Sept. 15. 8 1975-— F J e an b . . 10 8 . . 0 9 5 6 17 2 2 1 4 8, , 88%% Oct. 27 77%% A M p a r r . . 7 7 . . 5 9 0 3 June 26 11% Mar. 5, 8% Nov. 5.. 7% J M u a n y e 7 7 . . 0 4 7 0 July 5 12 1108, 78 % Dec. 2 .. 7% J A u u ly g . 7 7 . .1 6 5 6 Oct. 7 24, 7% Sept. 7.88 21 Oct. 7.96 28 11% May 20 7% Nov. 7.53 Nov. 4 June 9 7 14 10% 25 10% 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. Rate shown is the predominant rate," this table shows only the "large-business prime rate," which is the prime rate quoted by a majority of large "money market" banks to large range of rates charged by commercial banks on short-term loans to large businesses. businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes -9 10-99 100-499 500-999 1,000 and over Center Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 Short-term 35 centers 8.22 8.16 9.42 9.57 9.02 9.10 8.48 8.52 8.29 8.18 8.00 7.90 New York City 8.00 7.88 9.28 9.27 8.89 9.02 8.44 8.55 7.93 7.86 7.93 7.76 7 Other Northeast 8.43 8.37 9.83 10.00 9.33 9.34 8.71 8.63 8.67 8.51 8.01 7.95 8 North Central 8.12 8.00 9.01 9.11 8.79 8.82 8.39 8.32 8.25 7.91 7.94 7.82 3 Southeast 8.41 8.70 9.58 9.86 9.21 9.40 8.57 8.97 8.32 8.67 7.94 8.15 8 Southwest 8.28 8.34 9.21 9.35 8.76 8.89 8.27 8.32 8.32 8.24 8.06 8.15 4 West Coast 8.45 8.33 9.67 9.72 9.21 9.23 8.51 8.58 8.28 8.23 8.37 8.18 Revolving credit 35 centers 8.17 7.95 9.73 9.59 9.06 8.91 8.45 8.58 8.68 8.23 8.07 7.84 New York City 8.37 7.92 8.91 9.04 8.94 8.94 8.41 8.37 8.30 8.16 8.37 7.88 7 Other Northeast 8.09 7.92 10.11 10.45 9.01 8.66 8.01 8.21 8.78 7.56 7.98 7.91 8 North Central 8.27 8.20 9.70 9.78 9.58 10.01 8.81 9.24 8.56 8.12 8.12 8.03 7 Southeast 7.82 8.41 10.07 9.90 9.47 8.61 8.35 8.68 7.50 7,97 7.50 8.40 8 Southwest 8.41 8.40 9.36 9.44 8.88 8.66 8.46 8.51 8.11 8^ 47 8.49 8.29 4 West Coast 8.02 7.84 9.27 8.91 8.84 8.54 8.39 8.44 9.10 8.40 7.83 7.69 Long-term 35 centers 8.89 8.22 9.45 9.94 9.47 9.36 9.01 8.83 8.54 8.47 8.89 8.05 New York City 8.77 8.38 8.80 9.92 8.53 9.50 8.86 8.69 8.01 9.02 8.80 8.31 7 Other Northeast 8.96 8.53 9.35 9.99 10.09 9.76 9.56 9.41 9.28 7.96 8.60 8.28 8 North Central 9.45 7.22 9.71 9.06 9.24 8.68 8.50 8.64 8.23 8.09 9.81 6.80 7 Southeast 8.91 8.91 8.87 10.94 9.66 9.14 9.54 7.93 8.04 9.47 8.30 9.50 8 Southwest 8.41 8.47 9.69 10.74 9.38 9.86 8.67 8.37 8.62 8.68 8.18 8.28 4 West Coast 8.57 8.71 9.60 9.15 9.24 9.20 9.28 9.06 8.47 8.67 8.47 8.66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • INTEREST RATES A 27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities5 PPrriimmee FFFiiinnnaaannnccceee PPPeeerrriiioooddd ccoomm ppaa mm pp ee ee rr rr cc 11 iiaall pppaaa CCC ppp OOO... eee rrr bbbaaa PPP nnn rrriii kkk mmm eee eee rrrsss ''' FFF eee eee rrraaa ddd lll --- 3-month bills 6 6-month bills 6 9- to 12-month issues ppplllaaaccceeeddd aaacccccceeepppttt--- fffuuunnndddsss 33-- ttoo 55-dddiiirrreeeccctttlllyyy,,, aaannnccceeesss,,, rrraaattteee444 yyeeaarr 90-119 4 to 6 333 tttooo 666 999000 dddaaayyysss 333 Rate Market Rate Market 1-year iissssuueess 77 days months mmmooonnnttthhhsss222 on new yield on new yield bill (mar- Other 7 issue issue ket yield) 6 1967 55555.....1111100000 44444.....8888899999 44444.....7777755555 44444.....2222222222 44444.....333332222211111 44444.....2222299999 44444.....666663333300000 44444.....6666611111 44444.....7777711111 44444.....8888844444 55555.....0000077777 1968 55555.....9999900000 55555.....6666699999 55555.....7777755555 55555.....6666666666 55555.....333333333399999 55555.....3333344444 55555.....444447777700000 55555.....4444477777 55555.....4444466666 55555.....6666622222 55555.....5555599999 1969 77777.....8888833333 77777.....1111166666 77777.....6666611111 88888.....2222211111 66666.....666667777777777 66666.....6666677777 66666.....888885555533333 66666.....8888866666 66666.....7777799999 77777.....0000066666 66666.....8888855555 1970 77777.....7777722222 77777.....2222233333 77777.....3333311111 77777.....1111177777 66666.....444445555588888 66666.....3333399999 66666.....555556666622222 66666.....5555511111 66666.....4444499999 66666.....9999900000 77777.....3333377777 1971 55555.....1111111111 44444.....9999911111 44444.....8888855555 44444.....6666666666 44444.....333334444488888 44444.....3333333333 44444.....555551111111111 44444.....5555522222 44444.....6666677777 44444.....7777755555 55555.....7777777777 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—Nov. 8.95 8.81 8.50 9.03 9.45 7.585 7.47 7.551 7.52 7.29 7.67 7.65 Dec. 9.18 8.98 8.50 9.19 8.53 7.179 7.15 7.091 7.11 6.79 7.33 7.22 1975—Jan.. 7.39 7.30 7.31 7.54 7.13 6.493 6.26 6.525 6.36 6.27 6.74 7.29 Feb 6.36 6.33 6.24 6.35 6.24 5.583 5.50 5.674 5.62 5.56 5.97 6.85 Mar. 6.06 6.06 6.00 6.22 5.54 5.544 5.49 5.635 5.62 5.70 6.10 7.00 Apr. 6.11 6.15 5.97 6.15 5.49 5.694 5.61 6.012 6.00 6.40 6.83 7.76 May, 5.70 5.82 5.74 5.76 5.22 5.315 5.23 5.649 5.59 5.91 6.31 7.49 June, 5.67 5.79 5.53 5.70 5.55 5.193 5.34 5.463 5.61 5.86 6.26 7.26 July. 6.32 6.44 6.01 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 Sept, 6.79 6.86 6.53 6.83 6.24 6.383 6.42 6.870 6.92 7.20 7.54 8.22 Oct.. 6.35 6.48 6.43 6.28 5.82 6.081 5.96 6.385 6.25 6.48 6.89 7.80 Nov. 5.78 5.91 5.79 5.79 5.22 5.468 5.48 5.751 5.80 6.07 6.40 7.51 Week ending— 11997755——AAuugg.. 6.43 6.53 6.18 6.48 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 SSeepptt.. 6 6.75 6.75 6.50 6.82 6.06 6.381 6.38 6.866 6.89 7.07 7.43 8.07 13 6.75 6.75 6.50 6.85 6.15 6.389 6.43 6.889 6.88 7.14 7.51 8.26 20 6.85 6.93 6.50 6.82 6.28 6.444 6.45 6.901 6.97 7.31 7.64 8.34 27 6.78 6.95 6.58 6.81 6.29 6.316 6.38 6.824 6.90 7.21 7.52 8.18 Oct. 4 6.85 6.93 6.70 6.79 6.36 6.547 6.46 6.980 6.91 7.16 7.61 8.21 11 6.70 6.88 6.75 6.59 6.06 6.239 6.23 6.571 6.53 6.74 7.20 7.97 18 6.44 6.59 6.56 6.38 5.82 6.045 6.01 6.243 6.25 6.51 6.88 7.87 25,, . 6.08 6.23 6.23 6.04 5.73 5.887 5.73 6.156 6.06 6.29 6.66 7.67 Nov. 1 5.88 6.00 6.00 5.83 5.65 5.685 5.58 5.974 5.82 6.02 6.42 7.50 8 .... 5.88 6.03 6.00 5.79 5.17 5.602 5.50 5.792 5.71 5.89 6.30 7.41 15 5.75 5.88 5.63 5.77 5.24 5.279 5.37 5.483 5.65 5.96 6.27 7.38 22 5.75 5.88 5.78 5.79 5.24 5.471 5.49 5.796 5.85 6.17 6.47 7.60 29 5.75 5.88 5.78 5.80 5.28 5.520 5.54 5.933 5.98 6.24 6.54 7.62 1 Averages of the most representative daily offering rate quoted by Before 1973, the daily effective rate was the rate considered most represendealers. tative of the day's transactions, usually the one at which most transactions 2 Averages of the most representative daily offering rate published by occurred. finance companies, for varying maturities in the 90-179 day range. 5 Except for new bill issues, yields are averages computed from daily 3 Beginning Aug. 15, 1974, the rate is the average of the midpoint of closing bid prices. the range of daily dealer closing rates offered for domestic issues; prior 6 Bills quoted on bank-discount-rate basis. data are averages of the most representative daily offering rate quoted by 7 Selected note and bond issues. dealers. 4 Seven-day averages of daily effective rates for week ending Wednesday. Since 1973 the daily effective Federal funds rate is an average of the rates NOTE.—Figures for Treasury bills are the revised series described on p. on a given day weighted by the volume of transactions at these rates. A-35 of the Oct. 1972 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 INTEREST RATES • DECEMBER 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 l States Indus- Rail- Public ( t l e o r n m g ) - Total 1 Aaa Baa New ce R n e t - ly Aaa Baa trial road utility Pre- Com- Comissue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1974—No v 6.93 6.54 6.06 7.01 9.21 9.34 9.60 8.89 10.50 9.30 9.59 10.14 8.60 5.13 Dec 6.78 7.04 6.65 7.50 9.53 9.56 9.56 8.89 10.55 9.23 9.59 10.02 8.78 5.43 12.97 1975—Ja n 6.68 6.89 6.39 7.45 9.36 9.45 9.55 8.83 10.62 9.19 9.52 10.10 8.41 5.07 Feb 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 Mar 6.73 6.70 6.28 7.25 9.35 9.38 9.28 8.67 10.29 9.05 9.25 9.67 8.04 4.42 10.10 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 8.28 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 Sept 7.29 7.40 6.70 7.96 9.68 9.57 9.55 8.95 10.38 9.35 9.42 9.98 8.56 4.39 Oct 7.29 7.40 6.67 8.01 9.45 9.43 9.51 8.86 10.37 9.32 9.40 9.94 8.58 4.22 Nov 7.21 7.41 6.64 8.08 9.20 9.26 9.44 8.78 10.33 9.27 9.36 9.83 8.50 4.07 Week ending— 1975—Oct. 7.43 7.62 6.92 8.20 9.72 9.70 9.56 8.96 10.39 9.36 9.41 10.01 r8.70 4.48 7.36 7.52 6.80 8.12 9.60 9.56 9.54 8.93 10.39 9.35 9.41 10.00 r8.58 4.22 7.31 7.32 6.60 7.92 9.53 9.41 9.52 8.86 10.37 9.32 9.40 9.95 8.66 4.15 7.22 7.18 6.44 7.80 9.32 9.30 9.48 8.81 10.36 9.30 9.39 9.90 8.55 4.09 Nov. 7.18 7.36 6.60 8.00 9.22 9.33 9.46 8.78 10.36 9.28 9.38 9.86 8.42 4.14 7.17 7.50 7.64 8.15 9.10 9.24 9.43 8.76 10.32 9.25 9.36 9.82 8.56 4.14 15. 7.17 7.40 6.62 8.07 9.11 9.24 9.43 8.75 10.34 9.27 9.35 9.82 8.52 4.03 22. 7.25 7.37 6.59 8.04 9.40 9.30 9.44 8.81 10.31 9.29 9.34 9.81 8.48 4.08 29. 7.24 7.37 6.59 8.04 9.25 9.46 8.81 10.34 9.28 9.37 9.85 8.43 4.04 Number of 121 20 30 41 30 40 i4 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 acyear 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

DECEMBER 1975 • SECURITY MARKETS A 29 SECURITY PRICES Common stock prices Bond prices New York Stock Exchange Amer- (per cent of par) ican Stock Standard and Poor's index New York Stock Exchange index Ex- (1941-43= 10) (Dec. 31, 1965 = 50) change total index ( G t l U e o o r . n m v S g t . ) , - S l a o t n c a d a te l p A C o A o ra r A - te Total In tr d i u al s - R ro a a i d l- P u u ti b li l t i y c Total In tr d i u al s - T p t o r i a r o n t n a s - - Utility na F n i- ce 1 ( 9 A 1 3 7 0 u 1 3 0 , g ) = . 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 55.23 66.1 55.8 84.62 94.96 34.94 40.53 44.97 50.05 29.46 30.65 43.38 84.26 55.23 66.1 56.0 88.57 99.29 36.92 42.59 46.87 52.26 30.79 31 .87 44.36 83.46 55.77 66.2 56.3 90.07 100.86 37.81 43.77 47.64 52.91 32.15 32.83 47.48 85.60 55.96 66.4 56.6 89.60 100.40 37.39 43.25 47.38 52.80 31.09 32.47 44.34 83.02 56.10 65.1 56.5 88.93 99.59 37.38 43.19 47.01 52.27 31.49 32.53 46.39 82.97 56.04 66.7 56.7 90.48 101.36 38.19 43.75 47.87 53.17 32.28 32.45 47.87 84.88 55.48 66.4 56.0 90.32 101.13 38.07 44.00 47.80 53.05 32.47 33.15 47.80 84.91 55.54 66.6 56.0 90.65 101.50 37.53 44.22 47.94 53.22 32.38 33.28 47.94 90.65 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 UUnnrreegguu-llaatteedd 33 FFFFrrrreeeeeeee ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss aaaatttt bbbbrrrrooookkkkeeeerrrrssss 4444 EEEEEnnnnnddddd ooooofffff pppppeeeeerrrrriiiiioooooddddd By source By type Margin stock Convertible Subscription NNoonnmmaarrggiinn bonds issues ssttoocckk TToottaall BBrrookkeerrss BBaannkkss ccrreeddiitt aatt bbaannkkss Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1974—Oct 5,026 4,110 916 3,930 872 145 32 5 12 2,024 431 1,419 4,994 4,103 891 3,960 851 139 29 4 11 2,054 410 1,447 Dec 4,836 3,980 856 3,840 815 137 30 3 11 2,064 411 1,424 1975—Jan 4,934 4,086 848 3,950 806 134 29 2 13 1,919 410 1,446 Feb 5,099 4,269 830 4,130 783 136 34 3 13 1,897 478 1,604 Mar 5,164 4,320 844 4,180 800 134 30 6 14 1,882 515 1,770 Apr 5,327 4,503 824 4,360 781 138 30 5 13 1,885 505 1,790 May 5,666 4,847 819 4,700 779 140 27 7 13 11,,888833 520 1,705 June 5,140 4,990 146 4 519 1,790 July 55555,,,,,444444444466666 55555,,,,,333330000000000 111114444433333 33333 555555555577777 11111,,,,,777771111100000 Aug 55555,,,,,333336666655555 55555,,,,,222222222200000 111114444422222 33333 555551111166666 11111,,,,,555550000000000 Sept 55555,,,,,333339999999999 55555,,,,,222225555500000 111114444455555 44444 444447777722222 11111,,,,,444445555555555 Oct. 55555,,,,,444444444488888 55555,,,,,333330000000000 111114444444444 44444 555554444444444 11111,,,,,444449999955555 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 • DECEMBER 1975 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt in debit status End of l ( i m on il s - End of period cc NN rree ee dd tt ii tt b T al o a t n al c e period d o o f l - m 80 o r o e r 70-79 60-69 50-59 40-49 Un 4 d 0 er ssttaattuuss 60 o r p e m r o c r e e n t 6 L 0 e p ss e r th c a e n n t of ( m d i o l l li l o ar n s s ) lars)! 1974—Oct.. 40.9 35.1 24.0 7,248 1974—Oct... 4,000 4.6 5.5 9.4 16.8 27.3 36.4 Nov. 40.0 34.6 25.3 6,926 Nov.. 4,040 4.2 5.1 8.5 14.8 24.4 42.8 Dec. 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. . r3,950 5.6 7.3 13.5 24.6 28.1 21.2 Feb. 42.2 40.1 17.8 7,303 Feb.. r4,130 5.9 7.2 14.6 25.4 28.5 18.4 Mar. 44.4 40.1 15.5 7,277 Mar.. r4,180 6.5 8.0 15.3 27.6 25.8 16.9 Apr. 45.2 41 .1 13.7 7,505 Apr.. r4,360 7.1 8.7 16.1 28.7 23.5 15.9 May 44.5 43.2 12.3 7,601 May. r4,700 7.0 9.1 16.7 31.5 21.0 13.4 June 45.9 43.1 11.0 7,875 June. r4,990 7.4 9.9 18.3 32.7 20.4 11.4 July. 45.6 41.1 13.1 7,772 July.. r5,300 6.0 8.3 13.9 23.6 30.4 17.9 Aug. 43.5 40.6 16.0 7,494 Aug.. 5,220 5.5 6.8 11.3 20.7 31.0 24.7 Sept. 45.3 38.9 15.8 7,515 Sept.. 5,250 5.1 7.3 10.6 19.6 31.0 26.5 Oct.. 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 NOTE.—Special miscellaneous accounts contain credit balances that i Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other NOTE.—Each customer's equity in his collateral (market value of col- collateral in the customer's margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col- sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t- Other G U o . v S t . . S l a o t n c a d a te l C r a o a n r t d p e o- Cash O as t s h e e t r s li T a a t o b i n e t i d s a l i l - De i p ts o s- l O ia t t i b h e i s e l r i- G r c e o e s a n u e c e n r - r v t a s e l classi ( f i i n e d m b o y n t m h a s) t urity 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—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 July.. 76,097 4,396 3,965 1,436 26,976 1,835 3,004 117,709 106,533 2,970 8,208 957 463 266 526 2,212 Aug... 76,310 4,405 4,187 1,451 27,104 1,730 3,067 118,254 106,745 3,255 8,254 981 431 237 573 2,222 Sept.. 76,429 4,487 4,279 1,495 27,033 1,783 3,136 118,643 107,560 2,778 8,304 1,011 372 256 499 2,138 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

DECEMBER 1975 • SAVINGS INSTITUTIONS A 31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a t l s U S n ta i t t e e s d Sta lo te c a a l n d Foreign1 Bonds 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 t r s 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79.198 20,607 75,496 6,904 17,065 11,832 197 2 239,730 11,372 4,562 3,367 3,443 112.985 86,140 26,845 76,948 7,295 18,003 13,127 197 3 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25.919 81,369 7,693 20,199 14,057 197 4 263,817 11,890 4,396 3,653 3,841 119,580 97,430 22,150 86,258 8,249 22,899 14,941 1974—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 June 278,343 12,560 4,738 3,762 4,060 129,838 101,238 28,600 88,035 8,989 23,675 15,246 July. 279,354 12,814 4,843 3,902 4,069 130,298 102,675 27,623 88,162 9,058 23,794 15,228 Aug. 280,482 13,022 4,895 4,039 4,088 130,659 103,496 27,163 88,327 9,112 23,919 15,443 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book NOTE.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. "Other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Liabilities Mortgage Total loan com- End of period M ga o g r e t s - I s n i m e t v i c e e e u s n s r t 1 t - - Cash Other l a ia s T b s o e il t t i s a t — l i es S c a a v p i i n ta g l s w N or e t t h 2 m ro B o w n o e r e y - d 3 Other ou m a p t t s i e t e t r m a n i n d o e d n d i o 4 t n s f g 197 1 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 197 2 206,182 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 1974r 249,293 23,240 22,991 295,524 242,959 18,436 24,780 3,244 6,105 7,454 1974—Oct.. 248,177 22,132 22,940 293,249 238,338 18,444 24,508 3,840 8,119 8,127 Nov.. 248,699 23,255 23,222 295,176 239,567 18,675 24,510 3,479 8,945 7,723 Dec.. 249,293 23,240 22,991 295,524 242,959 18,436 24,780 3,244 6,105 7,454 1975—Jan... 249,719 25,390 23,252 298,361 246,227 18,586 23,355 3,057 7,136 7,887 Feb.. 250,828 27,003 23,669 301,500 249,524 18,816 21,895 3,049 8,216 8,787 Mar.. 252,442 28,304 24,210 304,956 256,017 18,654 20,373 3,275 6,637 10,050 Apr.. 254,727 29,047 24,868 308,642 258,875 18,882 19,845 3,608 7,432 11,653 May. 257,911 30,648 25,520 314,079 262,770 19,128 19,317 4,105 8,759 12,557 June. 261,336 30,880 25,786 318,003 268,978 18,992 18,881 4,446 6,706 12,363 July.. 264,458 32,054 26,311 322,823 272,032 19,266 18,765 4,771 7,989 12,611 Aug.. 267,717 31,694 27,127 326,538 273,504 19,495 19,237 4,995 9,307 12,673 Sept.. 270,600 30,786 27,745 329,131 277,201 19,414 20,052 5,128 7,336 12,585 Oct.®. 273,596 31,654 28,157 333,407 279,482 19,649 20,320 5,202 8,754 11,857 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 passall, 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 • DECEMBER 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- financdeficit debt Agency accounts 1 Less: Equals: sury ing, (-) securi- securi- Special Total operat- Other net 3 ties ties notes2 ing Special Other balance issues Fiscal year: 197 2 208,649 231,876 -23,227 29,131 ,269 6,796 1,623 19,442 1,362 1,108 6,255 197 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 -3,417 889 -2,077 197 5 280,997 324,601 -43,604 58,953 ,069 8,112 -1,081 50,853 -1,570 1,891 -6,928 H 19 a 7 lf 3 — ye J a u r l : y -Dec. 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-Dec. 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 5,272 -1,231 36,059 1,658 1,643 -2,746 Month: 1974—Oc t r19,601 r26,440 r —6,839 -1,242 -256 -2,053 -152 r707 -6,445 r—600 >--913 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 A M p a r y 3 1 1 2 , , 4 7 5 9 1 3 2 29 8 , , 6 1 0 8 1 6 -15 1 , , 3 8 9 5 4 0 1 7 1 ,0 ,4 8 1 1 8 --376 3,29 1 6 0 - - 4 4 5 4 1 0 7 8 , , 4 5 8 5 5 6 -5 7 , , 7 6 5 6 7 6 1 - , 7 8 3 4 2 7 3 1 4 7 9 8 June 31,817 30,296 1,521 5,030 -55 4,131 276 567 -949 56 -2,981 July r20,055 ^31 ,107 -11,052 5,051 -23 -2,427 -346 7,800 -3,390 -1,373 -1,511 Aug r23,604 r30,654 -7,050 9,472 6 2,384 -94 7,189 -630 -263 -1,032 Sept 28,615 29,044 -429 1 ,935 -2,151 -367 8,463 6,961 446 -627 Oct 19,316 32,425 -13,109 8,352 -3,656 260 11,743 -203 -348 815 Selected balances Treasury operating balance Borrowing from the public. Memo: End Debt of of Less: Govt.period B F a . n R k . s ac l c T a o o n a a u d x n n ts d t O a e r p t i h o e e s s r i 4 - Total se P c d u u e b r b i l t t i i c e s s A ec g u e r n it c i y e s G I o n v v t e , s a tm cc e o n u ts n ts o f 1 S n L p o e e t c s e s i s a : 2 l E T q o u t a a l l s: s c p p o r o N r i n v p o s a s w o . t — e r e 5 d S i p ss e u c e ia s l 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 1 1 9 9 7 7 2 3 4 2 , , 0 3 3 4 8 4 7 8 , , 6 4 3 3 4 3 1 1 3 0 9 6 1 1 0 2 , , 1 5 1 7 7 6 4 4 2 5 7 8 , , 2 1 6 4 0 2 1 1 0 1 , , 8 1 9 0 4 9 1 8 0 9 1 , , 5 2 3 4 6 8 2 2 4 4 , , 0 1 2 3 3 3 8 8 2 2 5 5 3 3 4 2 3 3 , , 0 77 4 0 5 4 5 1 1 , , 8 3 1 2 4 5 197 4 2,919 6,152 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 197 5 5,773 1,475 7,591 533,188 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—Oc t 789 1,381 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 2,885 410 220 3,515 499.710 11,037 116,812 23,886 369,049 75,964 Mar.... 4,271 2,142 220 6,633 509,659 11,042 115,596 24,807 380,298 76,392 Apr 8,364 5,415 521 14,299 516,740 11,004 115,606 24,355 387,783 77,124 May.... 7,040 984 521 8,545 528,158 10,998 118,902 23,915 396,339 75,140 June.... 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 396,906 76,092 July..., 2,776 878 r444 4,098 538,240 10,920 120,606 23,847 404,707 77,173 Aug 2,349 rl ,214 -141 r3,423 547.711 10,926 122,990 23,752 411,895 76,659 Sept 8,075 2,161 529 '10,765 553,647 10,935 120,839 23,385 420,358 77,026 Oct 8,517 1 ,251 559 10,327 561,999 10,931 117,183 23,645 432,102 1 With the publication of the Oct. 1974 Federal Reserve BULLETIN, taries" (deposits in certain commercial depositaries that have been conthese 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

DECEMBER 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 Pres. taxes and Excise Cus- Estate Misc. Elec- Non- Gross contribution2 Un- Other taxes toms and re- With- tion with- Re- Net re- Re- empl. net Net gift ceipts4 held Cam- held funds total ceipts funds insur. re- total paign Pay- Self- ceipts 3 Fundi roll empl. taxes Fiscal year: 197 2 208,649 83,200 25,679 14,143 94,737 34,926 2,760 44,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,225 98,093 27,017 21,866 103,246 39,045 2,893 52,505 2,371 6,051 3,614 64,542 16,260 3,188 4,917 3,921 197 4 264,932 112,092 28 30,812 23,952 118,952 41,744 3,125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 197 5 280,997 122,071 34,328 34,013 122,386 45,747 5,125 71,789 3,417 6,770 4,466 86,441 16,551 3,676 4,611 6,711 Half year: 1973—July-Dec.. 124,256 52,964 6,207 999 58,172 16,589 1,494 29,965 201 2,974 1,967 35,109 8,966 1,633 2,514 2,768 1974—Jan.-June. 140,676 59,100 28 24,605 22,953 60,782 25,155 1,631 32,919 2,807 3,862 2,084 41,671 7,878 1,701 2,521 2,601 July-Dec.. 139,807 61,377 7,099 1,016 67,460 18,247 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,341 1975—Jan.-June. 141,190 60,694 27,198 32,997 54,926 27,500 3,109 37,371 3,163 3,856 2,279 46,667 7,790 1,718 2,327 3,370 Month: 1974—Oc t r19,601 '10,111 561 78 10,595 1,717 511 4,558 221 363 5,142 1,401 347 370 r542 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 10,253 5,366 132 15,487 1,745 557 4,802 223 245 402 5,673 1,351 307 385 629 Feb 19,975 10,964 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 Mar 20,134 9,624 2,661 8,152 4,134 7,228 649 6,268 208 21 373 6,870 1,160 295 356 741 Apr 31,451 9,558 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 10,300 819 12,749 -1,630 1,192 18 7,689 340 2,209 350 10,588 1,373 270 459 559 June 31,817 10,027 4,541 ' 444 13,123 10,241 664 5,552 373 92 413 6,431 1,464 301 412 508 July 20,055 9,205 908 498 9,615 1,838 471 5,309 444 374 6,128 1,514 313 503 r615 Aug 23,604 10,246 488 331 10,403 1,045 425 8,085 1,257 372 9,713 1,394 302 430 '743 Sept 28,615 9,182 4,809 382 13,609 6,277 264 5,555 75 400 6,280 1,430 312 431 539 Oct 19,316 9,983 589 -81 10,653 1,694 821 4,552 259 395 5,206 1,462 343 396 382 Budget outlays5 Gen- Nat- Educa- Gen- Reveral ural Com- tion, eral enue Undis- Na- sci- Agri- re- Com- mun. man- Health Govt., shar. trib. Period Total tional Intl. ence, cul- sources, merce and power, and Vet- Inter- law and offde- affairs space, ture envir., and region, and wel- erans est en- fiscal setting fense and and transp. devel- social fare force., assist- retech. energy 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 16,800 151,800 17,100 34,400 6,500 7,300 -20,000 Month: 1975— A M p a r r . . 2 29 7 , , 6 9 0 8 1 6 7 7, , 5 4 5 3 5 5 5 1 0 0 3 9 3 3 6 7 8 9 2 3 7 4 5 7 671231 1 1 , ,0 41 8 5 8 1,5 3 1 0 9 9 1 1 , , 8 20 3 9 8 1 1 2 2 , , 3 1 7 5 9 4 1 1 , , 4 8 6 1 6 1 2 2, , 7 6 1 5 6 6 5 41 6 6 8 1,524 3 - - 1 1 , ,2 0 3 5 6 3 May 28,186 8,000 408 384 42 679 995 383 1,647 11,968 1,468 2,607 479 -873 June 30,296 7,854 557 256 179 788 1,289 453 1,684 14,158 1,412 2,521 759 "-i4 -1,601 July. r31,107 7,307 531 476 270 821 2,256 402 1,237 13,092 1,367 2,637 593 1,625 -1,094 Aug. r30,654 8,229 448 402 117 770 2,165 568 1,690 12,431 1,447 2,672 553 213 -1,071 Sept. 29,044 6,923 47 398 507 844 1,899 453 1,684 12,738 1,334 2,859 548 4 -1,068 Oct.. 32,425 8,192 362 398 312 740 1,965 462 896 13,575 1,518 2,957 492 1,592 -1,035 1 Collections of these receipts, totaling $2,427 million for fiscal year 6 Consists of interest received by trust funds, rents and royalties on the 1973, were included as part of nonwithheld income taxes prior to Feb. Outer Continental Shelf, and Govt, contributions for employee retirement. 1974. 7 Contains retroactive payments of $2,617 million for fiscal* 1972. 2 Old-age, disability, and hospital insurance, and Railroad Retirement 8 Estimates presented in 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 payretirement 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 • DECEMBER 1975 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (inters bearing) End of period p d T g u e r o b b o t t l s a i s l c i Total Marketable C v ib e o r l n e t- - Nonm Fo a r r e k i e g t n a bl S e avings i S s p su e e c s i a 5 l Total Bills C c e a r t t e if s i - Notes Bonds bonds Total : issues 4 bo a n nd d 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—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 Sept. 553.6 431 .5 338.9 142.8 158.5 37.7 2.3 90.3 21 .5 66.9 121 .1 Oct.. 562.0 443.6 350.9 147.1 166.3 37.6 2.3 90.5 21 .2 67.2 117.4 Nov. 566.8 447.5 355.9 151.1 166.1 36.7 2.3 89.3 21.3 67.6 116.7 1 Includes non-interest-bearing debt (of which $614 million on Nov. 30, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1975, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): despositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern- NOTE.—Based on Monthly Statement of the Public Debt of the United ment bonds, and Treasury deposit funds. States, published by U.S. Treasury. See also second paragraph in NOTE to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a t i s l c ag G t U e a r o n n u . v S 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 i k a - s l M s b a a u v n i t n u k g a s s l p I c a n a o n s n m u c i e e r - - s r c O a o t t r i h p o e o n r - s g S l a o o t n c v a d a t t e s l . Savi I n n g d s i v idu O al t s h er n F a i o t n a i r o t n e e d n i r g a - n l 1 t O i m o n t r 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 2t>1.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Sept 481.5 140.6 81.0 259.8 52.0 2.5 5.7 10.5 29.3 62.5 20.8 56.0 20.6 Oct 480.2 138.4 79.4 262.5 52.7 2.5 5.9 11.2 28.8 62.8 21.0 56.6 21 .1 Nov 485.4 139.0 81.0 265.3 53.7 2.5 5.9 11.0 28.7 63.2 21.1 58.3 20.8 Dec 492.7 141.2 80.5 271.0 55.6 2.5 6.1 11.0 29.2 63.4 21 .5 58.4 23.2 1975—Jan 494.1 139.0 81.3 273.8 54.6 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 56.5 2.7 6.2 11 .4 30.5 64.0 21 .3 64.6 21 .6 Mar 509.7 138.5 81.4 289.8 61 .8 2.9 6.6 12.0 29.7 64.4 21.4 65.0 26.1 Apr 516.7 138.0 87.8 290.9 64.1 3.2 6.7 12.5 29.8 64.7 21.4 64.9 23.6 May 528.2 140.9 85.6 301.7 67.7 3.4 6.9 13.7 29.8 65.1 21.5 66.8 26.8 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 July 538.2 142.5 81.9 313.8 71.4 3.7 7.3 16.2 31.3 65.9 21.8 66.7 29.5 Aug 547.2 144.8 82.5 320.4 75.4 3.9 7.4 16.0 31.2 66.2 22.6 67.3 30.5 Sept.P 553.6 142.3 87.0 324.4 78.4 4.0 7.6 15.0 32.2 66.5 23.0 65.5 32.3 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed se- 2 Consists of savings and loan assns., nonprofit institutions, cor- curities and (2) remove from U.S. Govt, agencies and trust funds porate pensions trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. Beginning in July 1974, total gross public debt includes Federal trust funds; Treasury estimates for other groups. Financing Bank bills and excludes notes issued to the IMF ($825 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 y 1 e - a 5 r s y 5 e - a 1 r 0 s 1 y 0 e - a 2 r 0 s 20 O y v e e a r rs Total Bills Other AH 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—Aug. 31 331,080 175,467 138,086 37,381 106,272 25,443 14,431 9,467 Sept. 30 338,946 180,165 142,803 37,362 109,540 25,436 14,370 9,435 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—Aug. 31 20,088 3,106 409 2,697 6,692 4,050 4,233 2,006 Sept. 30 19,702 2,883 241 2,642 6,632 3,951 4,233 2,002 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—Aug. 31 82,546 42,790 34,085 8,705 30,404 5,782 1,460 2,111 Sept. 30. 86,998 46,641 37,559 9,082 30,685 5,971 1,490 2,210 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—Aug. 31 228,446 129,571 103,592 25,979 69,176 15,611 8,738 5,350 Sept. 30 232,246 130,641 105,003 25,638 72,223 15,514 8,647 5,223 Commercial banks: 1972—Dec. 31 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Dec. 31 45,737 17,499 7,901 9,598 22,878 4,022 1,065 272 1974—Dec. 31 42,755 14,873 6,952 7,921 22,717 4,151 733 280 1975—Aug. 31 57,763 22,833 12,166 10,667 29,955 4,077 614 286 Sept. 30 60,459 24,943 14,023 10,920 30,637 3,994 622 263 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 1975—Aug. 31 2,771 594 248 346 1,383 448 233 113 Sept. 30 2,882 651 317 334 1,447 437 232 115 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—Aug. 31 5,864 912 505 407 1,717 1,716 1,148 371 Sept. 30 6,085 945 529 416 1,836 1,781 1,151 372 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—Aug. 31 6,652 4,304 3,521 783 2,034 217 72 25 Sept. 30 5,904 3,799 3,017 782 1,856 160 64 25 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 1 19 9 7 7 5 4 — — A D u ec g . . 3 3 1 1 2 1 , , 6 6 2 6 4 3 3 83 5 9 0 53 8 6 7 2 3 6 0 3 3 1,3 8 9 3 2 5 2 26 8 4 2 110736 2 2 3 3 Sept. 30 2,805 902 578 324 1,509 267 104 23 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—Aug. 31 8,920 5,081 4,347 734 1,716 774 826 523 Sept. 30 9,303 5,426 4,565 861 1,749 765 842 521 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—Aug. 31 143,850 95,009 82,270 12,739 30,979 8,114 5,738 4,008 Sept. 30 144,809 93,975 81,974 12,001 33,190 8,110 5,630 3,903 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 732 insurance companies combined, each abput 90 per cent; Ownership. (2) 458 nonfinancial corporations and 487 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 501 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) 5,552 commercial banks, 473 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 U.S. GOVERNMENT SECURITIES • DECEMBER 1975 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer UUU...SSS... GGGooovvvttt,,, PPPeeerrriiioooddd aaagggeeennncccyyy TToottaall ssseeecccuuurrriiitttiiieeesss Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com- All 1 year years years 10 years securities securities mercial otheri dealers brokers banks 1974—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 Aug 5,183 3,375 1,340 333 134 742 1,405 1,185 1,851 844 Sept 5,566 4,032 1,315 128 91 931 1,405 1,198 2,033 787 Oct 8,714 5,929 2,332 309 144 1,275 2,676 1,839 2,924 1,249 Week ending— 1975—Oct. 1 5,686 4,086 1,402 130 68 1,025 1,275 1,148 2,238 880 8 7,864 5,539 2,032 172 121 1,162 2,311 1,591 2,799 1,567 15 7,812 5,192 2,355 129 137 1,128 2,463 1,535 2,686 1,150 22 M0,405 r7,198 2,876 177 154 rl ,454 r3,308 r2,271 r3,373 rl ,387 29 r7,942 '5,575 2,095 168 104 rl ,241 2,466 1,698 r2,538 1,084 Nov. 5 9,526 6,023 2,083 1,130 291 1,199 2,807 2,456 3,065 842 12 9,398 6,385 1,939 849 224 1,317 3,017 2,130 2,933 1,831 19 7,571 5,423 1,368 567 213 1,103 2,197 1,756 2,515 1,200 26 7,070 5,529 1,064 341 136 1,004 1,892 1,839 2,335 1,103 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 i t e l u s l r i- W y i e 1t a h r i n y 1 e - a 5 r s y 5 e - a 1 rs 0 y O e 1 v a 0 e r r s a s G e g t c e o ie u n v s r c t i y , - Period sou A r l c l es Y N C o i e t 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—Oc t 2,837 2,149 420 247 21 1,414 1974—Oc t 4,621 1,194 1,003 571 1,853 Nov.. . . 4,478 2,998 714 602 163 1,530 Nov 5,626 1,466 1,245 561 2,355 Dec 4,821 3,100 974 553 175 1,803 Dec 6,904 2,061 1,619 691 2,534 1975—Ja n 4,634 2,689 1,236 600 113 1,578 1975—Ja n 6,185 1,455 1,277 864 2,590 Feb 5,588 3,658 1,180 536 213 1,469 Feb 6,295 1,672 1,077 714 2,832 Mar 5,737 3,435 1,486 618 198 1,444 Mar 6,881 1,879 1,650 838 2,513 Apr 4,453 3,123 1,036 218 77 937 Apr 5,696 1,655 1,326 583 2,132 May 6,332 4,917 1,094 248 73 896 May.... 6,656 1,684 1,567 452 2,953 June.... 6,768 5,923 748 100 -3 790 June.... 7,682 1,955 1,979 737 3,012 July.... 5,736 4,978 775 47 -64 626 July 6,594 1,365 1,435 929 2,865 Aug 5,501 4,491 609 262 138 610 Aug 6,167 1,009 1,148 1,120 2,890 O Se c p t t 7 5 , , 3 71 2 8 2 6 5 , , 0 2 1 1 9 4 1,0 4 9 1 1 0 11 5 1 6 1 3 0 9 2 4 5 9 2 8 9 O Se c p t t 6 6 , , 5 9 7 4 6 0 1 1 , , 6 1 5 6 8 0 1 1 , , 7 6 9 4 2 0 9 8 7 1 2 7 2 2 , , 8 6 0 7 4 3 Week ending— Week ending— 1975—Sept. 3 5,685 4,649 791 183 62 660 1975—Sept. 3. 6,089 963 979 1,175 2,973 10 6,136 5,302 626 149 59 470 10. 7,080 1,401 1,847 1,251 2,581 17 5,744 5,535 162 13 34 482 17. 7,275 1,247 1,992 1,112 2,925 24 5,356 5,016 338 -20 21 633 24. 5,738 954 1,519 786 2,480 Oct. 1 5,196 4,833 326 7 30 450 Oct. 6,185 1,051 1,424 566 3,145 8 6,704 5,942 719 -13 54 339 6,319 1,329 1,373 576 3,041 15 8,684 7,236 1,309 34 106 435 15. 8,319 2,053 2,981 798 2,487 2 29 2. 7 6 , , 9 6 7 4 1 7 5 6 , , 4 3 3 1 6 4 1 1 , , 0 5 9 1 5 8 5 4 1 8 9 6 1 5 5 5 5 7 4 0 2 2 2 6 . . 7 6, , 0 3 5 0 7 4 1 1 , , 5 7 4 5 2 3 2 1 , , 0 0 2 2 8 9 1,0 8 5 7 9 5 2 2, , 4 6 2 4 7 8 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

DECEMBER 1975 • FEDERALLY SPONSORED CREDIT AGENCIES A 37 OUTSTANDING ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, OCTOBER 31, 1975 Cou- Amount Cou- Amount Cou- Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon and maturity rate of dollars) and maturity of dollars) and maturity rate Federal home loan banks Federal National Mortgage Banks for cooperatives Bonds: Association—Cont. Bonds: 12/18/70- 11/25/75.... 6.50 350 Debentures: 5/1/75 - 11/3/75.. 6.15 5/25/73 - 11/25/75 7.05 600 3/10/72 - 12/10/75 500 6/2/75 - 12/1/75.. 5.80 5/28/74- 11/25/75 9.10 700 9/10/73 - 12/10/75 300 7/1/75 -1/5/76. .. 5.65 6/21/74- 2/25/76 8.70 400 3/11/71 - 3/10/76 500 8/4/75 - 2/2/76. .. 6.80 8/25/71 - 2/25/76 7.38 300 6/12/73 - 3/10/76 400 9/2/75-3/1/76. .. 7.40 8/27/73 -2/25/76 8.75 300 6/10/71 - 6/10/76 250 10/1/75-4/1/76.. 7.50 8/26/74-2/25/76 9.20 600 2/10/72 - 6/10/76 450 10/1/73 -4/4/77.. 7.70 6/22/73 - 5/25/76 7.20 600 9/10/74 -6/10/76 700 10/1/75- 10/2/78. 8.55 11/27/73 -5/25/76 7.45 300 11/10/71 - 9/10/76 300 12/2/74- 10/1/79. 8.00 7/25/73 - 8/25/76 7.80 500 6/12/72-9/10/76 500 9/25/74-8/25/76 9.55 700 12/10/74-9/10/76 200 10/25/74- 11/26/76.... 8.60 600 7/12/71 - 12/10/76 300 Federal intermediate 7/25/74- 11/26/76 9.55 500 12/11/72- 12/10/76 500 credit banks 10/25/73-2/25/77 7.20 500 6/10/74- 12/10/76 600 Bonds : 11/25/74-2/25/77 8.05 500 3/13/62 - 2/10/77 198 2/3/75 - 11/3/75 . 7.05 6/21/74- 5/25/77 8.70 500 9/11/72 - 3/10/77 500 3/3/75-12/1/75. . 6.15 6/25/71 - 5/25/77 6.95 200 3/11/74 - 3/10/77 400 3/1/73 - 1/5/76. . 6.65 4/12/73 - 8/25/77 7.15 300 9/10/75-3/10/77 450 4/1/75 - 1/5/76.. 6.05 5/28/74-8/25/77 8.80 600 12/10/70 - 6/10/77. . . 250 5/1/75 -2/2/76. . 6.60 2/26/73 - 11/25/77 6.75 300 5/10/71 -6/10/77 150 6/2/75 - 3/1/76.. 6.15 11/27/73- 11/25/77.... 7.45 300 12/10/73 -6/10/77 500 7/1/75 -4/1/76. . 5.80 8/26/74- 11/25/77 9.15 700 9/10/71 -9/12/77 300 8/4/75 -5/3/76. . 7.00 9/25/74-2/27/78 9.38 400 9/10/73 -9/12/77 400 9/2/75-6/1/76. . 7.60 9/21/73 - 5/25/78 7.60 500 7/10/73 - 12/12/77 500 10/1/75- 7/1/76. 7.70 8/26/74- 11/27/78 9.10 500 10/1/73 - 12/12/77 500 7/2/73 - 1/3/77.. 7.10 6/21/74 - 2/26/79 8.65 600 6/10/74-3/10/78 650 7/1/74-4/4/77.. 8.70 9/25/74 - 2/26/79 9.45 600 3/10/75-3/10/78 350 1/2/74 - 1/3/78. . 7.10 10/25/74-5/25/79 8.65 500 6/12/73 - 6/12/78 600 1 /2/15 - 112/19 . . 7.40 5/28/74 - 5/25/79 8.75 400 6/10/75 -6/12/78 400 7/1/75 -1/2/80. . 7.40 7/25/74 - 8/27/79 9.50 500 3/11/74-9/11/78 550 11/25/74- 11/26/79. .. . 8.15 500 10/12/71 - 12/11/78.... 300 12/23/74- 11/26/79.... 7.50 500 7/10/74- 12/11/78 450 Federal land banks 3/25/70 - 2/25/80 7.75 350 12/10/73 - 3/12/79 500 Bonds: 2/25/74-2/25/80 7.05 300 9/10/73 - 6/11/79 300 4/20/72- 1/20/76.... 6.25 10/15/70- 10/15/80 7.80 200 9/10/74 -6/11/79 600 7/22/74 - 1/20/76.... 9.20 10/27/71 - 11/27/81... 6.60 200 6/12/72-9/10/79 300 2/21/66 - 2/24/76... 5.00 10/25/74- 11/25/81.... 8.65 400 12/10/74 -9/10/79 700 1/22/73 -4/20/76.... 6.25 8/25/75 - 2/25/82 8.63 500 10/10/75 - 10/10/79 400 4/22/74-4/20/76.... 8.25 4/12/73 - 5/25/83 7.30 183 12/10/71 - 12/10/79 350 7/20/66 - 7/20/76... 5.38 2/25/75 - 11/25/83 7.38 400 6/10/75 - 12/10/79 650 1/21/74 - 7/20/76.... 7.05 5/28/74 -5/25/84 8.75 300 2/10/72 - 3/10/80 250 4/23/73 - 10/20/76... 7.15 10/25/73 - 11/26/93.. . . 7.38 400 3/10/75-3/10/80 750 4/21/75 - 1/20/77.... 7.45 4/1/75 -4/10/80 300 7/21/75-10/20/76... 7.20 Fede M ral o r H tg o a m g e e L C o o a r n p oration 6 2/ / 1 1 6 0 / / 7 7 3 4 - - 6 7 /1 /3 0 1 / / 8 8 0 0 6001 4 7 / /2 2 0 2 / / 7 7 3 4 - - 7 4 / /2 2 0 0 / / 7 7 7 7 . . . . . . . . 8 7. . 5 2 0 5 Bonds: 2/16/73 - 7/31/80 9 10/20/71 - 10/20/77. . 6.35 5/29/73 -8/25/76 7.05 400 10/1/73 -9/10/80 400 10/21/74- 1/23/78. .. 8.70 5 5 7 1 / / / 1 1 1 1 / 5 1 1 1 / / / 9 7 7 7 1 2 2 /7 - - - 0 2 - 5 8 / / / 2 1 2 2 5 1 6 6 / / / / 7 9 9 2 7 7 6 7 /95.... 6 8 7 7 . . . . 1 1 6 7 5 5 0 5 3 1 1 1 5 5 4 5 0 0 0 0 9 6 1 1 / / 2 / 1 1 2 /1 6 0 9 1 / / / 7 7 / 7 3 7 5 2 2 - - - 9 - 1 1 /1 / 0 1 2 0 / 2 9 3 / / / 0 1 8 8 / 0 0 1 8 / 0 8 0 6 3 1 5 0 5 0 0 6 5 2 7 1 5 / / / / 2 2 2 2 0 0 0 /6 / / / 6 7 7 6 5 2 3 - - - - 4 4 / 2 2 7 / /2 2 0 /2 0 0 /7 / 0 / 7 8 7 / 3 7 8 - 8 . 7 . . 8 . . . . . 4 7 6 5 . . . . 6 1 4 1 0 3 0 3 Ce 2 r / t 2 if 5 i / c 7 a 5 t e - s : 3/15/05 8.20 300 4 3 / / 1 1 8 2 / / 7 7 3 3 - - 3 3 / / 1 1 0 0 / / 8 8 1 1 3 2 5 6 0 7 1 / 0 2 /2 2 3 / / 7 7 4 3 - - 7 / 1 2 0 0 / / 1 7 9 8 /7 .. 8 .. . . 9 7 . . 1 3 5 5 Fe C D M de a i o 9 9 A S 6 6 3 3 3 3 r s 3 1 p a r / c / / / / / / / e / 0 i s 3 t 2 1 l 2 1 1 1 1 2 o t o c / s g 0 a / 1 1 / 4 4 / 2 9 p o u o N 7 7 a 7 l / / / / / / e n c n / 7 3 3 7 g 3 7 7 7 7 a 7 r i t 1 d d 3 3 3 3 2 e t a a - - - 0 i a e - n t t o - - - - - - - b r i b i 8 o 3 y n o o 1 a e / 1 t / 7 7 a 1 n 1 1 n 0 1 c 3 n e 1 l 0 / / — 0 s 0 / / / k m s 1 / 1 1 t 1 1 3 / / / 8 u e / 1 M / / 1 5 5 1 1 a 8 6 d 8 8 r / / / / / / r 4 9 2 2 e 8 9 8 9 8 o k 0 s 1 6 1 7 5 r b e : t t o g n a d ge s: 4 7 3 5 5 5 5 5 5 8 . . . . . . . . . . 4 3 5 9 7 5 4 8 4 6 8 8 8 2 4 0 9 5 0 3 2,1 2 2 2 7 4 0 7 3 2 5 8 5 1 7 8 1 5 1 0 4 3 0 0 0 7 9 6 4 9 3 7 6 9 6 2 3 3 3 1 1 1 1 / / / / / / / / / / / / / / / 1 0 2 1 1 1 1 1 1 1 1 1 2 2 2 1 1 2 / / / 0 2 0 0 1 2 0 0 1 1 1 1 1 1 1 0 1 8 / / / / / / / / / 0 / / 0 / 0 / / / 7 7 7 7 7 7 7 7 7 7 7 7 / 7 7 / / 7 5 1 1 1 3 1 5 4 2 3 7 3 1 7 7 4 4 2 1 5 3 - - - - - - - - - - - - - - - 7 6 1 9 9 - 5 - - 9 3 6 6 6 / 1 5 5 9 2 / / / / 1 6 / 1 1 / 1 / / / 2 / / 1 1 1 / / 1 1 1 1 1 1 1 / 0 1 1 / 0 0 1 0 2 / 1 0 0 0 0 0 / 1 / 8 / 0 / / 2 / 8 / 8 / 0 / / / / / 2 8 1 1 8 2 8 8 1 1 8 8 8 8 / 8 / / / 4 0 1 1 1 4 8 8 8 2 2 3 3 2 8 / / 1 3 1 3 8 8 2 2 2 2 2 2 3 3 2 2 2 3 2 3 3 3 3 5 0 0 0 0 0 0 5 5 5 5 0 5 0 0 0 1 0 0 0 0 8 0 0 0 0 0 0 0 0 0 0 0 2 8 6 7 4 4 9 2 4 2 7 2 7 1 1 1 1 1 1 1 / / / / / / / / / / / 0 0 / 0 / 0 2 2 2 / 2 1 2 2 2 2 2 2 2 2 / / 2 / / 3 1 1 3 5 3 0 2 0 0 2 2 2 2 0 1 0 2 / / / / / / / / / / 3 3 / 1 / 7 7 7 7 7 7 / 7 / 7 7 6 7 0 / / 7 7 7 5 5 5 3 1 2 4 3 4 7 / 3 7 7 / 5 7 4 3 2 2 7 - - - - - - - - - 4 - - - - 5 - 4 4 - - - 7 4 7 4 1 - 7 1 1 / 7 / 1 1 1 4 / / / / / 1 2 / / 2 / 2 1 1 / 0 2 2 2 2 / 2 2 / / 0 2 0 2 2 3 0 2 0 0 / 2 2 0 2 0 0 1 / 1 / 2 3 / 0 2 / / / / 2 3 / 8 8 / / / / 7 2 2 / 7 0 / / 0 / 8 8 8 8 / 8 1 8 3 9 8 3 0 7 7 / 9 7 / 0 2 0 2 5 2 1 8 8 / / 9 9 . 9 7 8 . . . 2 0 . . . . . . . . . . . 9 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7 8 6 8 8 7 6 7 6 6 8 7 7 8 7 6 8 5 . . . . . . . . . . . . . . . . . . . 1 1 8 7 8 2 5 8 7 3 3 1 7 1 8 1 5 9 0 5 0 0 0 0 0 5 5 0 0 0 5 0 0 0 0 0 0 0 12/10/74-9/10/84 300 10/20/75 - 10/21/85. . 12/10/71 - 12/10/84 250 3/10/75-3/11/85 500 3/10/72 - 3/10/92 200 6/12/72-6/10/92 200 12/11/72- 12/10/97-82. . 200 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at top of p. A-38. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 FEDERALLY SPONSORED CREDIT AGENCIES • DECEMBER 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 Mortto 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) 197 0 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 6,395 197 1 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 7,063 197 2 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 8,012 197 3 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—Oct.. 21,409 3,224 105 22,058 2,129 2,580 29,139 27,543 3,598 2,855 8,838 8,482 13,418 12,427 Nov. 21,502 2,568 106 21,474 2,182 2,603 29,407 28,024 3,573 3,295 8,700 8,441 13,643 12,427 Dec.. 21,804 3,094 144 21,878 2,484 2,624 29,709 28,201 3,575 3,561 8,848 8,400 13,643 12,427 1975—Jan.. 20,728 4,467 113 21,778 2,612 2,699 29,797 28,030 3,910 3,653 8,888 8,419 14,086 13.020 Feb.. 19,460 4,838 99 20,822 2,819 2,698 29,846 27,730 3,821 3,592 9,031 8,484 14,326 13.021 Mar. 18,164 6,415 154 20,754 3,025 2,677 29,870 28,420 3,741 3,439 9,303 8,703 14,641 13,021 Apr.. 17,528 6,836 98 20,738 2,651 2.660 29,931 28,257 3,650 3.329 9,520 9,061 14,917 13,571 May. 17,145 5,745 98 19,463 2,708 2,656 29,977 27,714 3,499 2,982 9,763 9,231 15,180 13,571 June. 16,803 6,259 134 19,396 2,831 2,653 30,136 28,237 3,371 2,948 10,031 9,357 15,437 13,961 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 Aug.. 16,945 4,680 89 18,736 2,281 2,660 30,881 28,718 3,738 3,004 10,176 9,715 15,851 14,351 Sept.. 17,482 4,247 114 18,720 2,275 2,679 31,157 28,933 3,847 3,109 10,100 9,657 16,044 14,351 Oct.. 17,578 4,368 70 18,766 2,291 2,685 31,466 29,373 4,087 3,453 9,933 9,505 16,247 14,774 NOTE.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB's, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB's. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered3 G o e b a n l l e i- r- R n e u v e e - G l U o o a . v S n t . s , di s a s t n t a r d t i . c t Other2 Total c E a d ti u o - n b R r a i o d n a g d d e s s i U ti t e i s l- 4 H in o g u s s - V a a e n i t d e s ' r - O p p o t u h s r e e - s r gations auth. 197 1 .24,963 15,220 8,681 1,000 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 197 2 23,653 13,305 9,332 959 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 6,741 197 3 23,969 12,257 10,632 1,022 4,212 9,505 10,249 22,397 4,311 1,458 5,654 2,639 8,335 197 4 24,315 13,563 10,212 461 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 1974—Oct.. . 2,865 1,707 1,153 328 974 1,558 2,738 343 110 236 110 1,939 Nov.. 2,487 1,110 1,374 689 1,005 789 2,403 698 4 866 9 826 Dec... 1,500 761 717 222 558 700 1,475 297 64 424 53 637 1975—Jan... 2,367 1,364 997 372 702 1,293 2,332 710 49 644 172 757 Feb... 2,392 1,723 664 877 629 880 2,353 478 209 425 105 1,136 Mar.. 2,137 1,284 851 376 717 1,048 2,083 471 94 474 35 1,009 Apr... 2,413 1,501 905 368 880 1,161 2,316 405 61 734 38 1,078 May.. 2,905 1,885 1,015 811 1,197 889 2,784 419 211 559 25 1,570 June. 3,066 1,772 1,292 938 1,137 989 2,840 430 164 821 28 1,397 July. . 3,569 1,354 2,209 1,577 1,063 924 3,538 384 123 879 37 2,115 Aug.., 2,784 1,057 1,724 376 1,664 746 2,559 379 55 625 67 1,433 Sept... 2,107 866 1,229 357 1,143 591 2,063 268 133 436 28 1,198 Oct... 2,267 1,121 1,132 482 941 822 2,173 219 57 439 20 1,438 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 4 Water, sewer, and other utilities. by contract requiring the Housing Assistance Administration to make 5 Includes urban redevelopment loans. annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. NOTE.—Security Industries Assn. data; par amounts of long-term issues 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser based on date of sale unless otherwise indicated. and payment to issuer, which occurs after date of sale. Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • SECURITY ISSUES A 39 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate PPPPeeeerrrriiiioooodddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. .. 22 aa GG gg UU ee oo nn .. vv SS cc .. tt yy .. 33 aa (( nn UU SS dd tt .. aa SS lloo tt .. ee )) cc 44 aa ll OOtthheerrss TToottaall Total P o u f b fe li r c e l d y P p ri l v a a c t e e d l y Preferred Common 197 1 105,233 17,235 16,283 24,370 2,165 444444444444444444444444444444,,,,,,,,,,,,,,,999999999999999111111111111111444444444444444 333333333333333111111111111111,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999 222222222222222444444444444444,,,,,,,,,,,,,,,777777777777777999999999999999000000000000000 777777777777777,,,,,,,,,,,,,,,222222222222222000000000000000999999999999999 333333333333333,,,,,,,,,,,,,,,666666666666666777777777777777999999999999999 999999999999999,,,,,,,,,,,,,,,222222222222222333333333333333666666666666666 197 2 96,522 17,080 12,825 23,070 1,589 444444444444444000000000000000,,,,,,,,,,,,,,,777777777777777888888888888888777777777777777 222222222222222777777777777777,,,,,,,,,,,,,,,777777777777777222222222222222777777777777777 111111111111111888888888888888,,,,,,,,,,,,,,,333333333333333444444444444444777777777777777 999999999999999,,,,,,,,,,,,,,,333333333333333777777777777777888888888888888 333333333333333,,,,,,,,,,,,,,,333333333333333777777777777777333333333333333 999999999999999,,,,,,,,,,,,,,,666666666666666888888888888888999999999999999 197 3 100,417 19,057 23,883 22,700 1,385 333333333333333333333333333333,,,,,,,,,,,,,,,333333333333333999999999999999111111111111111 222222222222222222222222222222,,,,,,,,,,,,,,,222222222222222666666666666666888888888888888 111111111111111333333333333333,,,,,,,,,,,,,,,666666666666666444444444444444999999999999999 888888888888888,,,,,,,,,,,,,,,666666666666666222222222222222000000000000000 333333333333333,,,,,,,,,,,,,,,333333333333333777777777777777222222222222222 777777777777777,,,,,,,,,,,,,,,777777777777777555555555555555000000000000000 197 4 333333333333333777777777777777,,,,,,,,,,,,,,,888888888888888333333333333333777777777777777 333333333333333111111111111111,,,,,,,,,,,,,,,555555555555555555555555555555111111111111111 222222222222222555555555555555,,,,,,,,,,,,,,,333333333333333333333333333333777777777777777 666666666666666,,,,,,,,,,,,,,,222222222222222111111111111111444444444444444 222222222222222,,,,,,,,,,,,,,,222222222222222555555555555555333333333333333 444444444444444,,,,,,,,,,,,,,,000000000000000333333333333333333333333333333 1974—July 333333333333333,,,,,,,,,,,,,,,222222222222222555555555555555777777777777777 222222222222222,,,,,,,,,,,,,,,777777777777777000000000000000222222222222222 222222222222222,,,,,,,,,,,,,,,000000000000000888888888888888666666666666666 666666666666666111111111111111666666666666666 222222222222222222222222222222888888888888888 333333333333333222222222222222777777777777777 Aug 222222222222222,,,,,,,,,,,,,,,666666666666666666666666666666888888888888888 222222222222222,,,,,,,,,,,,,,,333333333333333444444444444444111111111111111 222222222222222,,,,,,,,,,,,,,,000000000000000444444444444444222222222222222 222222222222222999999999999999999999999999999 111111111111111000000000000000777777777777777 222222222222222111111111111111888888888888888 Sept 111111111111111,,,,,,,,,,,,,,,666666666666666111111111111111777777777777777 111111111111111,,,,,,,,,,,,,,,222222222222222000000000000000444444444444444 888888888888888999999999999999777777777777777 333333333333333000000000000000777777777777777 111111111111111222222222222222666666666666666 222222222222222888888888888888777777777777777 Oct 444444444444444,,,,,,,,,,,,,,,666666666666666000000000000000999999999999999 333333333333333,,,,,,,,,,,,,,,777777777777777777777777777777888888888888888 333333333333333,,,,,,,,,,,,,,,444444444444444222222222222222333333333333333 333333333333333555555555555555555555555555555 111111111111111999999999999999666666666666666 666666666666666333333333333333555555555555555 Nov 333333333333333,,,,,,,,,,,,,,,777777777777777444444444444444666666666666666 333333333333333,,,,,,,,,,,,,,,333333333333333444444444444444666666666666666 333333333333333,,,,,,,,,,,,,,,000000000000000111111111111111666666666666666 333333333333333333333333333333000000000000000 999999999999999333333333333333 333333333333333000000000000000777777777777777 Dec 333333333333333,,,,,,,,,,,,,,,555555555555555000000000000000555555555555555 333333333333333,,,,,,,,,,,,,,,000000000000000555555555555555222222222222222 222222222222222,,,,,,,,,,,,,,,111111111111111777777777777777222222222222222 888888888888888888888888888888000000000000000 111111111111111555555555555555222222222222222 333333333333333000000000000000111111111111111 1975—Jan 555555555555555,,,,,,,,,,,,,,,333333333333333777777777777777666666666666666 444444444444444,,,,,,,,,,,,,,,777777777777777888888888888888777777777777777 '''''''''''''''333333333333333,,,,,,,,,,,,,,,666666666666666555555555555555777777777777777 111111111111111,,,,,,,,,,,,,,,111111111111111333333333333333000000000000000 222222222222222333333333333333555555555555555 333333333333333555555555555555444444444444444 Feb 444444444444444,,,,,,,,,,,,,,,555555555555555222222222222222666666666666666 333333333333333,,,,,,,,,,,,,,,999999999999999000000000000000444444444444444 333333333333333,,,,,,,,,,,,,,,222222222222222000000000000000111111111111111 777777777777777000000000000000333333333333333 111111111111111777777777777777333333333333333 444444444444444444444444444444999999999999999 Mar 555555555555555,,,,,,,,,,,,,,,333333333333333666666666666666888888888888888 444444444444444,,,,,,,,,,,,,,,444444444444444777777777777777111111111111111 333333333333333,,,,,,,,,,,,,,,999999999999999777777777777777111111111111111 555555555555555000000000000000000000000000000 222222222222222555555555555555333333333333333 666666666666666444444444444444444444444444444 Apr.r 444444444444444,,,,,,,,,,,,,,,444444444444444333333333333333999999999999999 333333333333333,,,,,,,,,,,,,,,111111111111111999999999999999333333333333333 222222222222222,,,,,,,,,,,,,,,777777777777777777777777777777111111111111111 444444444444444222222222222222222222222222222 333333333333333444444444444444777777777777777 888888888888888999999999999999999999999999999 May r 555555555555555,,,,,,,,,,,,,,,666666666666666444444444444444777777777777777 444444444444444,,,,,,,,,,,,,,,333333333333333111111111111111777777777777777 333333333333333,,,,,,,,,,,,,,,777777777777777999999999999999666666666666666 555555555555555222222222222222111111111111111 333333333333333444444444444444666666666666666 999999999999999888888888888888444444444444444 Juner 555555555555555,,,,,,,,,,,,,,,555555555555555999999999999999333333333333333 444444444444444,,,,,,,,,,,,,,,555555555555555888888888888888888888888888888 333333333333333,,,,,,,,,,,,,,,999999999999999444444444444444333333333333333 666666666666666444444444444444555555555555555 222222222222222333333333333333000000000000000 777777777777777777777777777777555555555555555 July 444444444444444,,,,,,,,,,,,,,,111111111111111111111111111111444444444444444 333333333333333,,,,,,,,,,,,,,,444444444444444555555555555555777777777777777 222222222222222,,,,,,,,,,,,,,,666666666666666555555555555555888888888888888 888888888888888000000000000000111111111111111 111111111111111999999999999999666666666666666 444444444444444555555555555555999999999999999 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r l c a i n a e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 197 1 9,551 2,102 2,158 2,370 2,006 434 7,576 4,201 4,222 1,596 6,484 2,204 197 2 4,796 1,812 2,669 2,878 1,767 187 6,398 4,967 3,680 1,127 8,415 2,096 197 3 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 197 4 9,890 543 1,851 956 983 22 8,872 3,964 3,710 222 6,241 587 1974—July.. 1,051 43 257 93 62 1 318 300 242 53 773 65 S A e u p g t . . . . 6 1 0 8 1 6 4 2 4 3 6 8 4 6 5 2 4 1 0 4 8 3 6 8 2 4 2 2 9 1 6 6 3 33 6 1 4 4 2 6 1 2 7 4 4 4 8 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— F J e a b n . . . . . 1 1, , 6 8 3 9 1 8 44 3 1 6 7 5 9 7 6 4 0 8 7 4 5 1,4 7 7 6 1 1 4 5 8 0 6 7 9 1 3 2 3 4 5 1 9 5 3 3 1 9 32 Mar.. 2,368 111 271 74 83 828 679 317 604 34 Apr.. 1,498 233 293 211 97 794 584 354 209 156 9 May. 2,265 214 241 141 415 845 704 153 260 399 10 Juner 2,180 123 383 194 229 838 640 362 596 47 July.. 1,027 62 131 231 337 695 324 247 16 1,022 22 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 • DECEMBER 1975 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 PPeerriioodd All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1971 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1972 42,306 10,224 32,082 27,065 8,003 19,062 15,242 2,222 13,018 1973 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 1974 39,334 9,935 29,399 31,554 6,255 25,098 7,980 3,678 4,302 1974—11 9,637 2,048 7,589 7,847 1,584 6,263 1,790 465 1,326 Ill 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,759 82 IV 12,272 2,871 9,401 10,086 2,004 8,082 2,186 866 1,319 1975—1 15,211 2,088 13,123 12,759 1 ,587 11,172 2,452 501 1,951 II 15,602 3,211 12,390 11,460 2,336 9,124 4,142 875 3,266 Type of issues Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 1971 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1972 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1974 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1974—11 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 II 4,574 500 483 490 429 7 1,977 1,866 810 359 852 43 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 i 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—Oct.. 816 311 505 37,115 5,652 31,463 1964, 3,404 1,875 1,528 29,116 1,329 27,787 Nov.. 619 335 284 36,366 5,804 30,562 1965, 4,359 1,962 2,395 35,220 1.803 33,417 Dec.. 736 411 325 35,777 5,637 30,140 1966, 4,671 2,005 2,665 34,829 2,971 31,858 1975—Jan.. 1,067 428 639 37,407 3,889 33,518 1967, 4,670 2,745 1,927 44,701 2,566 42,135 Feb.. 889 470 419 39,330 4,006 35,324 1968 6,820 3,841 2,979 52,677 3,187 49,490 Mar. 847 623 224 40,449 3,870 36,579 Apr.. 808 791 17 42,353 3,841 38,512 1969 6,717 3,661 3,056 48,291 3,846 44,445 May. 677 735 -58 43,832 3,879 39,953 1970 4,624 2,987 1,637 47,618 3,649 43,969 June. 705 811 -108 45,538 3,640 41,898 1971 5,145 4,751 394 55,045 3,038 52,007 July.. 763 981 -239 42,896 3,591 39,305 Aug.. 753 788 -35 41,672 3,660 38,012 1972 4,892 6,563 -1,671 59,831 3,035 56,796 Sept.. 760 874 -114 40,234 3,664 36,570 1973 4,358 5,651 -1,261 46,518 4,002 42,516 Oct.. 914 995 -81 41,860 3,601 38,259 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 memcontractual 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

DECEMBER 1975 • BUSINESS FINANCE A 41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i s r t s 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 s ts - d co c a n a t l s i l p o o u i n w t m a - l p - Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e - e s P t a r a f o x t f e e i r s t s 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 s ts - d co c a t n a l i s l p o o u n it w m a - l p ances 1 ances 1 1968 87.6 39.9 47.8 23.6 24.2 46.8 1973—IV... 122.7 49.5 73.2 30.7 42.5 73.1 1969 84.9 40.1 44.8 24.3 20.5 51.9 1970 74.0 34.8 39.3 24.7 14.6 56.0 1974—1 135.4 52.2 83.2 31.6 51.6 74.1 1971 83.6 37.5 46.1 25.0 21.1 60.4 II. .. 139.0 55.9 83.1 32.5 50.5 75.7 1972 99.2 41.5 57.7 27.3 30.3 66.3 III... 157.0 62.7 94.3 33.2 61.1 77.6 1973 122.7 49.8 72.9 29.6 43.3 71.2 IV... 131.5 52.0 79.5 33.3 46.2 79.3 1974 140.7 55.7 85.0 32.7 52.4 76.7 1975—I. ... 101.2 39.0 62.3 33.8 28.5 81.2 II.... 113.3 43.0 70.3 34.0 36.3 83.0 III*'.. 134.1 51.9 82.2 34.5 47.7 85.2 1 Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities NNNeeettt Notes and accts. Notes and accts. EEEnnnddd ooofff pppeeerrriiioooddd wwwooorrrkkkiiinnnggg UU..SS.. receivable payable AAccccrruueedd cccaaapppiiitttaaalll TToottaall CCaasshh ss GG eecc oo uu vv rr tt ii ,, -- II tt nn oo vv rrii ee ee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U o . v S t . . i Other G U o . v S t . . 1 Other ttaaxxeess 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—11 235.4 608.2 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 II 269.0 703.2 63.7 12.7 3.3 284.8 281.4 57.3 434.2 5.8 270.1 17.7 140.6 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 Commu- Total Durable d N ur o a n b - le Mining R ro a a i d l- Air Other Electric and Ga o s t her nications Other i 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 112.40 22.62 23.39 3.18 2.54 2.00 2.12 17.63 2.92 13.96 22.05 25.04 4.84 4.78 .69 .48 .57 .44 4.04 .77 3.19 5.24 28.48 5.84 5.59 .71 .56 .60 .47 4.54 .82 3.53 5.83 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 28.16 5.59 5.69 . .8 78 0 .64 .61 .49 4.56 .75 3.60 5.46 28.23 5.65 5.96 .64 .43 .58 4.42 .78 3.39 5.57 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 28.43 5.59 6.55 .97 . .6 71 2 .47 .77 4.15 .79 3.22 5.19 2 3 7 1 . . 7 4 9 5 5 6 . . 1 2 6 0 6 7 . . 5 4 1 6 1. . 0 94 0 .61 . .4 5 3 0 . . 6 8 5 5 4 4. . 8 1 8 6 1. . 0 91 0 3.14 9.21 5.00 1 Includes trade, service construction, finance, and insurance. NOTE.—Dept. of Commerce estimates for corporate and noncorporate 2 Anticipated by business. 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 • DECEMBER 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 IIIR I yr lr II' III ALL HOLDERS. 499,758 564,825 634,954 678,598 688,546 694,989 708,947 724,367 1- to 4-family... 307,200 345,384 386,240 407,492 411,601 414,760 424,326 435,029 Multifamily.... 67,367 76,496 85,401 89,912 91,683 91,989 92,333 93,350 Commercial.... 92,333 107,508 123,965 138,002 140,965 142,701 145,353 148,035 Farm 32,858 35,437 39,348 43,192 44,297 45,539 46,935 47,953 PRIVATE FINANCIAL INSTITUTIONS. 394,239 450,000 505,400 537,430 542,552 546,689 558,179 569,514 1- to 4-family 253,540 288,053 322,047 338,166 340,007 342,313 350,198 358,276 Multifamily 52,498 59,204 64,730 67,486 68,161 68,095 68,453 69,023 Commercial 78,345 92,222 107,128 119,465 121,948 123,684 126,634 129,216 Farm 9,856 10,521 11,495 12,313 12,436 12,597 12,894 12,999 Commercial banks1. 82,515 99,314 119,068 130,582 132,105 131,903 133,012 134,025 1- to 4-family.... 48,020 57,004 67,998 73,987 74,758 74,696 75,356 75,979 Multifamily 3,984 5,778 6,932 7,496 7,619 7,176 6,816 6,701 Commercial 26,306 31,751 38,696 43,092 43,679 43,924 44,598 45,032 Farm 4,205 4,781 5,442 6,007 6,049 6,107 6,242 6,313 Mutual savings banks. 61,978 67,556 73,230 74,809 74,920 75,157 75,796 76,429 1- to 4-family 38,641 41,650 44,246 44,604 44,670 44,795 45,175 45,552 Multifamily 14,386 15,490 16,843 17,208 17,234 17,291 17,433 17,579 Commercial 8,901 10,354 12,084 12,938 12,956 12,996 13,112 13,221 Farm 50 62 57 59 60 75 76 77 Savings and loan associations. 174,250 206,182 231,733 247,612 249,293 252,442 261,336 270,583 1- to 4-family 142,275 167,049 187,750 200,343 201,553 204,099 211,290 218,767 Multifamily 17,355 20,783 22,524 23,573 23,683 23,831 24,409 24,972 Commercial 14,620 18,350 21,459 23,696 24,057 24,512 25,637 26,844 Life insurance companies. 75,496 76,948 81,369 84,427 86,234 87,187 80,035 88,477 1- to 4-family 24,604 22,350 22,053 19,232 19,026 18,723 18,377 17,978 Multifamily 16,773 17,153 18,431 19,209 19,625 19,797 19,795 19,771 Commercial 28,518 31,767 34,889 39,739 41,356 42,252 43,287 44,119 Farm 5,601 5,678 5,996 6,247 6,327 6,415 6,576 6,609 FEDERAL AND RELATED AGENCIES. 39,357 45,790 55,664 67,828 12,21A 75,830 79,696 84,031 1- to 4-family 26,453 30,147 35,454 43,187 45,755 47,608 50,389 53,314 Multifamily 4,555 6,086 8,489 10,644 11,790 12,662 12,898 13,645 Commercial 11 Farm 8,338 9,557 11,721 13,997 14,729 15,560 16,409 17,072 Government National Mortgage Association 5,323 5,113 4,029 4,052 4,848 5,584 5,612 6,537 1- to 4-family 2,no 2,490 1,330 1,337 1,600 1,843 1,852 2,157 Multifamily 2,542 2,623 2,699 2,715 3,248 3,741 3,760 4,380 Commercial 11 Farmers Home Administration. 819 837 1,200 1,500 1,600 1,700 1,800 1,900 1- to 4-family 398 387 550 688 734 780 826 872 Farm 421 450 650 812 866 920 974 1,028 Federal Housing and Veterans Administrations 3,389 3,338 3,476 3,764 3,907 3,882 4,039 4,187 1- to 4-family 2,517 2,199 2,013 2,036 2,090 1,976 2,044 2,103 Multifamily 872 1,139 1,463 1,728 1,817 1,906 1,995 2,084 Federal National Mortgage Association... 17,791 19,791 24,175 28,641 29,578 29,754 30,015 31,055 1- to 4-family 16,681 17,697 20,370 23,258 23,778 23,743 23,988 25,049 Multifamily 1,110 2,094 3,805 5,383 5,800 6,011 6,027 6,006 Federal land banks (farm only) 7,917 9,107 11,071 13,185 13,863 14,640 15,435 16,044 Federal Home Loan Mortgage Corporation, 964 1,789 2,604 3,713 4,586 4,608 4,944 5,033 1- to 4-family 934 1,754 2,446 3,414 4,217 4,231 4,543 4,632 Multifamily 30 35 158 299 369 377 401 401 GNMA Pools.... 3,154 5,815 9,109 12,973 13,892 15,662 17,851 19,275 1- to 4-family. 3,153 5,620 8,745 12,454 13,336 15,035 17,136 18,501 Multifamily... 1 195 364 519 556 627 715 774 INDIVIDUALS AND OTHERS2. 66,162 69,035 73,890 73,340 73,920 72,470 71,072 70,822 1- to 4-family 27,207 27,184 28,739 26,139 25,839 24,839 23,739 23,439 Multifamily 10,314 11,206 12,182 11,782 11,732 11,232 10,982 10,682 Commercial 13,977 15,286 16,837 18,537 19,017 19,017 18,719 18,819 Farm 14,664 15,359 16,132 16,882 17,132 17,382 17,632 17,882 1 Includes loans held by nondeposit trust companies but not bank trust NOTE.—Based on data from various institutional and Govt, sources, departments. with some quarters estimated in part by Federal Reserve in conjunction 2 Includes some U.S. agencies for which amounts are small or separate with the Federal Home Loan Bank Board and the Dept. of Commerce. data are not readily available. Separation of nonfarm mortgage debt by type of property, where not reported directly, and interpolations and extrapolations where required, estimated mainly by Federal Reserve. Multifamily debt refers to loans on structures of 5 or more units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 EEEnnnddd ooofff holdings transactions commitments holdings transactions commitments pppeeerrriiioooddd (during period) (during period) Total i F su H i r n e A - d - a g n V u t A e a e r - - d c P ha u s r- es Sales d p 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- es Sales d p M e u r r a i i d o n e d g s O t i a n u n g t d - - 1971 111777,,,777999111 111222,,,666888111 555,,,111111000 333,,,555777444 333366 999,,,888222888 666,,,444999777 996688 882211 114477 777788 6644 118822 119977 22 111999,,,777999111 111444,,,666222444 555,,,111111222 333,,,666999999 221111 888,,,777999777 888,,,111222444 11,,778899 11,,550033 228866 11,,229988 440088 1,606 119988 119977 33 222444,,,111777555 111666,,,888555222 666,,,333555222 666,,,111222777 7711 888,,,999111444 777...888888999 22,,660044 11,,774433 886611 11,,333344 440099 1,629 118866 119977 44 222999,,,555777888 111999,,,111888999 888,,,333111000 666,,,999555333 55 111000,,,777666555 777,,,999666000 44,,558866 11,,990044 22,,668822 22,,119911 5522 4,553 22,,339900 11997744——OOcctt...... 222999,,,111333999 111888,,,999666666 888,,,222000666 666111222 888777888 888,,,999888777 44,,110077 11,,991100 22,,119977 441100 77 30 22,,887711 NNoovv...... 222999,,,444000777 111999,,,000888333 888,,,222999111 333777999 222000111 888,,,555333222 44,,335522 11,,990088 22,,444455 227700 1122 28 22,,662211 DDeecc...... 222999,,,555777888 111999,,,111888999 888,,,333111000 222777888 222333111 777,,,999666000 44,,558866 11,,990044 22,,668822 226666 1166 34 22,,339900 11997755——JJaann...... 222999,,,666777000 111999,,,222333111 888,,,333111888 222000888 111444666 777,,,222888555 44,,774444 11,,990000 22,,884455 119999 2266 26 22,,119900 FFeebb...... 222999,,,777111888 111999,,,222555666 888,,,333111333 111666999 111333777 666,,,666777222 44,,553333 11 ,,889933 22,,664400 111133 330099 21 22,,007700 MMaarr.... 222999,,,777555444 111999,,,222777777 888,,,333000444 111555111 666333999 666,,,666333666 44,,660088 11,,888877 22,,772222 111133 1199 52 11,,004400 AApprr...... 222999,,,888111555 111999,,,222888222 888,,,333333777 222111111 999111333 666...888999000 44,,663344 11,,889900 22,,774444 112211 7711 297 11,,116611 MMaayy.... 222999,,,888555888 111999,,,222555111 888,,,333999555 222444777 666222111 666,,,666111555 44,,777733 11,,992200 22,,885544 220033 3388 42 996699 JJuunnee.... 333000,,,000111555 111999,,,222888222 888,,,444999888 333222666 555555777 666,,,555444999 44,,994444 11,,993366 33,,000088 221100 55 28 770000 JJuullyy.. .. 333000,,,333555111 111999,,,333888555 888,,,666999333 555333888 555777555 666,,,111111999 55,,001155 11 ,,994433 33,,007722 116611 6633 139 553300 AAuugg...... 333000,,,777777777 111999,,,555000777 888,,,999444222 555999444 888111444 555,,,888888888 44,,994422 11,,886633 33,,008800 9988 114455 132 550099 SSeepptt...... 333111,,,000555555 111999,,,555666000 999,,,111222222 444888888 555777555 555,,,333999999 55,,003333 11,,885522 33,,118811 114488 3311 79 440033 OOcctt...... 333111,,,333777333 111999,,,666444111 999,,,333000999 555000888 222888222 444,,,666888555 1 Includes conventional loans not shown separately. For FHLMC: Holdings and transactions cover participations as well as NOTE.—Data from FNMA and FHLMC, respectively. whole loans. Holdings include loans used to back bond issues guranteed For FNMA: Holdings include loans used to back bond issues guaranteed by GNMA. Commitments cover the conventional and Govt.-underby GNMA. Commitments include some multifamily and nonprofit written loan programs. hospital loan commitments in addition to 1 - to 4-family loan commitments accepted in FNMA's free market auction system, and through the FNMA- GNMA Tandem Plans. TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages Terms1 Yields (per cent) in primary market C ra o c te n e t n ( r t p a ) e c r t ( F p c e e h r e a s c r e g a n e n s t) d 2 M (y a e tu a r rs i ) ty L (p o e a r r n a / t c p io e 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 o L o l o o u la a s u n r . n s t ) o f F s H er L ie B s B 3 HUD 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 8.95 1.37 26.7 74.7 42.3 30.7 9.17 9.70 9.04 1.40 26.2 73.6 41.3 30.2 9.27 9.55 9.13 1.44 27.5 75.5 42.4 31.3 9.37 9.45 9.09 1.51 26.7 73.8 43.2 31.6 9.33 9.15 8.88 1.44 26.8 76.5 44.4 33.0 9.12 9.05 8.79 1 .61 26.5 75.1 45.9 33.7 9.06 8.90 8.71 1 .53 26.5 76.4 44.5 33.4 8.96 9.00 8.63 1.63 27.0 75.5 43.5 32.2 8.90 9.05 8.73 1.42 26.5 76.4 43.1 32.4 8.96 9.00 8.66 1 .40 26.0 75.9 44.1 32.9 8.89 9.00 8 8 . . 7 6 0 3 1 1. . 4 5 6 6 2 26 6 . . 7 7 r7 7 5 7 . . 9 0 r4 4 5 4 . . 6 6 r3334..71 8 8 . . 9 8 4 9 9 9 . . 1 2 5 5 8.76 1.56 27.4 77.8 44.0 33.6 9.01 9.25 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 precosts 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 companieas nd 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 • DECEMBER 1975 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 June 16 June 30 July 14 July 28 Aug. 11 Aug. 25 Sept. 8 Sept. 22 Oct. 6 Oct. 20 Nov. 3 Nov. 17 Amounts (millions of dollars): Govt.-underwritten loans Offered i 73.4 358.7 333.2 415.8 578.7 643.1 530.1 293.6 198.5 43.2 69.8 293.1 Accepted 38.6 246.9 174.9 247.7 365.5 223.0 197.7 142.0 143.0 23.2 41.7 180.6 Conventional loans Offered i 28.5 67.5 71.4 56.5 96.9 98.5 96.9 68.8 27.5 9.7 19.6 68.6 Accepted 15.7 47.3 35.8 34.5 48.9 31.0 43.9 35.2 23.5 9.2 15.2 34.6 Average yield (per cent) on shortterm commitments 2 Govt.-underwritten loans 9.06 9.07 9.10 9.17 9.32 9.50 9.70 9.86 9.95 9.65 9.32 9.33 Conventional loans 9.21 9.18 9.20 9.26 9.38 9.55 9.75 9.92 10.02 9.81 9.54 9.40 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 requirepaid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Dec. 31, Mar. 31 j June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Holder 1973 1974 1974 1974 1974 1975 1975 All holders 135.0 136.7 137.8 138.6 140.3 142.0 143.0 FHA 85.0 85.0 84.9 84.1 84.1 84.3 85.0 Co V m A m ercial banks 5 1 0 1 . . 0 5 5 1 1 1 . . 7 1 5121..90 5 1 4 0 . . 5 7 5 1 6 0 . . 2 4 5 1 7 0 . . 7 5 5 1 8 0 . . 0 6 FHA 8.2 7.8 7.6 7.4 7.2 7.2 7.3 VA 3.3 3.3 3.4 3.3 3.2 3.3 3.3 Mutual savings banks 28.4 28.2 27.9 27.8 27.5 27.6 27.8 FHA 15.5 15.3 15.1 15.0 14.8 14.8 14.9 VA 12.9 12.9 12.8 12.8 12.7 12.8 12.9 Savings and loan assns F V H A A 1 29.7 } 29.8 } 29.7 } r29.9 } r29.9 } 29.9 } 30.2 Life insurance cos J 13.6 j 13.3 13.1 12.9 12.7 12.5 12.2 FHA 9.2 9.0 8.8 8.7 8.6 8.4 8.2 VA 4.4 4.3 4.3 4.2 4.2 4.1 4.0 Others 52.1 54.3 56.1 57.4 59.9 61.6 62.2 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 multlfamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages TToottaall PPeerriioodd oo NN ff uu ll mm ooaa bb nn ee ss rr (( cc mm oo (( aa ii mm dd mm ll oo ll mm ii oo ll oo ll ii uu aa nn tt rr nn ss tt ss ee tt )) dd oo ff ( o t f a h m L o d u o o o s l a u l a n n a n t r d s s ) ( C p i o n e r r t n a e t r t c r e e e a s n c t t t ) (y M rs a . t / u m r o it s y . ) (p t L e o r r - a o v t a c i a o e n l - n u t e ) C ( a p t p e i r i o t n a c l e i r n z a t a t ) e - co D r v a e e t r i b o a t ge P co er n s c t e a n n t t 1971 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1972 2,132 4,986.5 2,339 8.57 23/3 75.2 9.6 1.29 9.8 1973 2,140 4,833.3 2,259 8.76 23/3 74.3 9.5 1.29 10.0 1974 1,166 2,603.0 2,232 9.47 21/3 74.3 10.1 1.29 10.6 1974—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 Apr 32 108.4 3,386 10.02 23/0 75.6 10.8 1.36 10.8 May 73 227.5 3,116 10.23 20/9 74.7 10.8 1.30 11.1 June 61 167.5 2,745 10.11 21/9 73.0 10.5 1.29 11.2 See NOTE on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • CONSUMER CREDIT A 45 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Home Charge accounts Auto- consumer improve- Personal Single- Service Total mobile goods ment loans Total payment credit paper paper loans1 loans Retail Credit outlets cards2 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—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 Aug. 188,821 155,263 52.011 50,061 8,094 45,097 33,558 12,362 7,392 2,247 11 ,557 Sept. 190,069 156,332 52,308 50,441 8,136 45,447 33,737 12.444 7,424 2,283 11,586 Oct.. 190,839 156,989 52,722 50,584 8,136 45,547 33,850 12,405 7,610 2,215 11,620 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 "Conheating-oil accounts. sumer Credit," Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, and BULLETINS for Dec. 1968 and Oct. 1972. CONSUMER CREDIT HELD BY COMMERCIAL BANKS (In millions of dollars) Instalment Noninstalment 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—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 Aug. 82,305 71,445 17,676 11,712 7,335 8,210 6,524 4,522 2,420 13,046 10,860 Sept. 82,677 71,751 17,639 11,774 7,324 8,363 6,523 4,561 2.448 13,119 10,926 Oct.. 82.888 71,988 17,734 11,888 7,286 8,394 6,464 4,586 2,452 13,184 10,900 See NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 CONSUMER CREDIT • DECEMBER 1975 INSTALMENT CREDIT HELD BY NONBANK LENDERS (In millions of dollars) Finance companies Other financial lenders Retail outlets Other consumer End of period Auto- goods paper Home Per- Mis- Auto- Other Total mobile improve- sonal Total Credit cellaneous Total mobile retail paper ment loans unions lenders1 dealers outlets Mobile Other loans homes 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—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 Aug. 38,340 12,982 3.498 4,251 741 16,868 27,348 24,043 3,305 18,130 282 17,848 Sept. 38,375 13,066 3.499 4,246 706 16.858 27,880 24,510 3,370 18,326 283 18,043 Oct. 38,411 13,203 3,498 4,215 673 16,822 28,038 24,706 3,332 18,552 284 18,268 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— N O o c v t. . . 1 1 0 0 . . 5 4 3 9 1 1 0 1 . . 9 1 8 9 1 12 2 . . 7 8 5 0 1 12 3 . . 9 0 4 2 1 1 7 7 . .2 2 3 3 1 1 2 2 . . 3 4 4 0 1 1 7 7 . . 1 2 1 1 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 "iiI is" 18.69 *2o!57* A M p a r y . : 1 1 0 0 . . 5 6 1 3 1 1 1 0 . . 0 9 7 6 1 1 2 2 . . 8 8 1 8 1 1 3 3 . . 0 1 0 0 1 1 7 7 . . 2 2 5 5 1 1 2 2 . . 2 3 8 6 1 1 6 6 . . 7 8 6 6 13.07 *is:96* 20.57 J Ju u l n y e . 1 1 0 0 . . 8 9 1 6 1 1 1 1 . . 2 4 1 6 1 1 3 3 . . 0 1 1 4 1 13 3 . . 4 2 2 0 1 1 7 7 . . 2 2 3 0 1 12 2 . . 5 5 8 0 1 17 7 . . 1 0 8 6 " i3."ii * 19.24 *2o!78* A Se u p g t . . 1 1 1 1 . . 3 1 1 5 1 1 1 1 . . 7 7 1 2 1 1 3 3 . . 1 2 0 0 1 1 3 3 . . 4 4 1 5 1 1 7 7. . 2 1 1 5 1 12 2 . . 8 6 4 7 1 1 7 7 . . 6 3 1 2 13.42 "i9i30 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 "u.ib' 119.49 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 F M e a b r . . . 1 1 1 1 . . 5 4 1 6 1 1 1 2 . . 6 1 6 4 1 13 3 . . 0 2 7 0 1 1 3 3 . . 4 4 4 0 1 1 7 7. . 1 2 5 4 1 1 3 3 . . 0 0 7 7 1 1 7 7 . . 3 5 9 2 13.59 'io.'oo' '26.'86' A M p a r y . 1 11 1 . . 3 4 9 4 1 11 1 . . 5 7 7 8 1 13 3 . . 1 2 1 2 1 13 3 . . 4 5 1 5 1 1 7 7 . . 2 1 1 7 1 1 3 3 . . 0 0 7 9 1 1 7 7. . 6 5 5 8 13.57 19.63 20.75 J J u u n ly e . 1 11 1 . . 2 3 6 0 1 1 2 1 . . 0 9 2 4 1 1 3 3 . . 1 1 3 0 1 1 3 3 . . 4 4 9 0 1 1 7 7 . . 1 1 5 0 1 1 3 3 . . 0 1 9 2 1 1 7 7 . . 6 6 9 7 " f 3! 78 * "l9.'87* '20 .'97' A Se u p g t . . 1 1 1 1 . . 3 3 1 3 1 1 1 1 . .9 8 9 0 1 1 3 3 . . 0 0 5 6 1 1 3 3 . . 3 4 7 1 1 1 7 7 . . 1 1 4 4 1 1 3 3 . .1 1 8 0 1 1 7 7. . 7 7 3 0 i3.78 i9.69 'llAA Oct.. 11.24 12.05 13.00 13.38 17.11 13.15 17.79 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

DECEMBER 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— 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 Aug 14,358 3,932 6,077 349 4,000 6,047 3,386 2,178 2,747 Sept 14,973 4,173 6,342 372 4,086 6,289 3,459 2,367 2,858 Oct 14,762 4,143 6,148 378 4,093 6,249 3,412 2,341 2,760 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—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 Aug. 13,858 3,820 5,826 358 3,854 5,941 3,366 1 ,952 2,599 Sept. 13,916 3,727 6,090 350 3,749 5.925 3,363 1,906 2,722 Oct.. 14,046 3,749 5,978 387 3,932 5,962 3,376 2,122 2,586 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 3,05.6 2,182 1974 8,687 559 4,479 810 2,839 3,015 1 ,682 2,649 1,341 1974—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 Aug 500 112 251 -9 146 106 20 226 148 Sept 1,057 446 252 22 337 364 96 461 136 Oct 716 394 170 -9 161 287 36 219 174 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. • DECEMBER 1975 MARKET GROUPINGS (1967 = 100) 1967 1974 1974 1975 por- aver- Grouping age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept. Oct.*3 Nov.® 100.0 124.8 121.7 117.4 113.7 Ill .2 110.0 109.9 110.1 111.1 112.2 114.2 116.1 116.6 116.8 Products, total 62.21 123.1 121.4 118.7 115.4 113.7 112.4 112.9 113.4 114.2 115.3 115.8 116.7 116.9 117.1 48.95 121.7 120.9 118.2 114.9 113.3 112.2 112.6 113.7. 114.5 115.7 115.9 116.7 116.9 117.1 28.53 128.8 126.3 123.4 120.1 118.8 118.2 119.6 121 .2!! 123.3 125.5 125.7 126.5 127.2 127.4 20.42 111.7 113.2 110.7 107.8 105.3 103.9 103.0 102.9 102.2 102.2 102.3 103.1 102.7 102.6 Intermediate products 13.26 128.3 123.0 120.5 117.6 115.2 112.7 113.4 112.4 112.8 114.3 115.4 116.7 117.0 117.3 37.79 127.4 122.1 114.8 110.5 107.4 105.9 105.2 104.9 106.0 106.8 111.5 115.4 116.2 116.4 Consumer goods Durable consumer goods 7.86 127.9 119.7 110.1 104.0 101.0 103.1 107.8 110.5 113.2 115.9 116.1 117.5 117.9 118.4 Automotive products 2.84 110.0 102.1 87.5 80.3 78.2 86.8 93.6 97.6 103.4 106.9 105.9 106.3 108.8 109.0 Autos 1.87 94.9 91.0 69.8 62.6 58.9 73.1 82.4 86.3 93.2 97.7 96.8 97.9 101.2 100.0 Auto parts and allied goods .97 139.0 123.6 121.5 114.4 115.5 113.2 115.2 119.3 122.8 124.8 123.2 122.7 123.4 126.0 Home goods 5.02 138.0 129.7 123.0 117.5 114.0 112.3 115.9 117.8 118.8 121.0 121 .9 123.8 122.9 123.8 Appliances, TV, and radios 1.41 132.0 115.3 102.5 94.4 89.0 85.0 96.7 102.4 103.5 104.7 106.5 106.6 106.4 107.1 .92 114488..88 113311..99 111199..88 110088..00 110044..88 9999..11 111144..22 111188..44 118.3 111188..99 112222..22 112211..33 112211..66 .49 76.0 1.08 153.5 144.7 143 8 135.1 132.3 127.9 127.8 128.6 131.1 135.5 136.0 135.6 134.9 Misc. home goods 2.53 134.7 131.4 125.5 123.0 120.1 121.0 121.4 121.7 122.1 124.0 124.5 128.5 126.9 128.3 20.67 129.2 128.8 128.4 126.3 125.5 124.1 124.0 125.3 127.2 129.0 129.4 129.8 130.7 130.9 Clothing 4.32 109.0 103.1 10? 0 95.0 94.5 90.9 89.2 94.4 97.7 101 .6 102.0 101.5 Consumer staples 16.34 134.5 135.6 135.5 134.5 133.6 132.7 133.3 133.5 134.9 136.3 136.6 137.3 137.7 137.8 Consumer foods and tobacco.... 8.37 125.4 126.2 125.3 123.3 123.2 120.7 122.7 122.4 124.1 125.5 125.8 125.7 126.3 126.3 Nonfood staples 7.98 144.0 145.3 146.2 146.4 144.5 145.3 144.3 145.3 146.4 147.7 148.0 149.5 149.7 149.7 Consumer chemical products.. 2.64 158.4 155.2 159.1 160.6 157.1 158.2 157.6 158.4 159.2 161.2 160.4 161 .6 161.6 Consumer paper products 1.91 125.2 127.4 126.7 122.0 121.9 120.9 118.4 122.8 123.3 124.1 126.7 128.7 130.5 Consumer fuel and lighting... 3.43 143.8 147.9 147.3 149.2 147.2 149.0 148.6 147.8 149.4 150.4 150.3 151.7 151 .3 22..2255 115533..77 115599..33 115599..00 115599..99 115599..77 116633..11 116611..99 116600..99 116611..33 116600..55 116611 ..11 116622..99 Equipment 12.74 129.4 131.0 127.1 122.3 119.3 117.0 115.4 115.0 113.9 113.9 114.9 115.9 115.5 115.7 Industrial equipment 6.77 128.7 129.3 126.7 122.9 120.4 118.8 116.4 115.3 114.0 113.3 113.4 115.1 115.2 115.6 Building and mining equip 1.45 136.0 140.1 137.4 138.4 137.0 137.7 132.3 131.7 127.7 126.9 128.3 129.7 132.1 132.0 Manufacturing equipment 3.85 121.7 119.4 116.5 111.8 109.4 106.6 105.6 105.0 104.3 105.5 105.1 105.5 104.1 104.8 Power equipment 1.47 139.9 144.5 142.6 136.6 132.1 131.8 128.9 126.2 125.8 120.3 120.8 125.5 127.4 127.6 Commercial, transit, farm equip... 5.97 130.3 132.9 127.6 121.6 118.0 115.1 114.2 114.7 113.9 114.6 116.5 116.6 115.8 115.9 Commercial equipment 3.30 141.1 143.1 139.3 135.2 130.4 127.8 123.2 121.5 120.7 123.0 123.4 122.6 123.1 123.4 Transit equipment 2.00 109.6 109.8 102.9 91.8 91 .5 88.8 92.2 98.6 98.0 98.0 101.5 104.1 100.6 100.0 Farm equipment .67 138.7 151.9 143.7 143.8 135.9 130.2 135.7 129.0 127.3 122.9 127.7 124.3 126.1 Defense and space equipment 7.68 82.3 83.7 83.4 83.8 82.4 82.1 82.4 82.7 82.9 82.6 81.4 81.7 81.3 80.6 Military products 5.15 81.2 81.8 81.3 81.5 80.7 80.3 80.7 82.0 82.0 82.1 80.6 80.8 80.4 79.7 Intermediate products Construction products 5.93 129.6 121.3 118.3 115.7 112.1 109.1 110.1 107.6 106.8 108.0 109.3 111.8 111.3 112.0 Misc. intermediate products 77..3344 127.3 124.2 122.5 119.2 118.4 115.6 111166..11 116.2 111177..55 111199..33 112200..33 112200..66 112211..55 Materials 20.91 127.3 123.5 114.2 110.3 107.0 104.7 101.6 100.2 99.8 100.3 106.1 109.0 109.8 110.0 Consumer durable parts 4.75 112.1 104.1 91.7 83.7 82.1 84.7 86.0 87.7 90.8 92.8 101.7 103.2 101.5 102.0 Equipment parts 5.41 123.8 122.2 118.3 116.9 112.0 108.7 104.6 102.1 97.3 96.8 100.7 102.4 103.6 104.0 Durable materials n.e.c 10.75 135.9 132.7 122.9 118.8 115.4 111.4 106.9 104.7 105.1 105.3 111 .0 114.9 116.6 116.5 13.99 128.5 122.1 116.2 109.2 105.7 105.3 107.9 109.5 112.3 114.0 118.2 123.4 124.4 124.8 Textile, paper, and chem. mat 8.58 139.8 131.1 122.9 112.9 108.5 106.2 110.4 113.2 117.0 118.9 126.0 133.0 134.6 135.2 Nondurable materials n.e.c 5.41 110.6 107.8 105.7 103.3 101.1 103.9 104.0 103.7 105.1 106.2 106.0 108.1 108.3 108.5 Fuel and power, industrial 2.89 122.6 112.7 113.0 117.8 118.2 118.0 117.5 118.0 119.5 121 .1 118.4 121 .8 121.5 119.5 Supplementary groups 9.34 124.6 117.4 113.2 107.1 105.0 102.3 103.6 106.9 109.1 112.0 112.8 113.5 114.4 115.2 Containers 11..8822 139.4 127.6 120.3 126.1 119.9 122.3 124.2 124.3 112288..44 132.8 113333..55 114422..77 113388..66 Gross value of products in market structure (In billions of 1963 dollars) Products total 286.3 439.0 426.7 416.4 410.1 405.1 409.6 408.6 414.5 416.1 418.1 424.0 426.1 426.1 Final products 221.4 341.3 331.0 322.3 317.7 315.3 319.0 319.4 325.0 325.2 326.3 331.1 332.9 333.2 Consumer goods •••.••...••.. 156.3 228.9 222.3 216.4 213.7 213.2 217.6 217.8 223.6 224.9 225.4 228.8 231.4 231.6 Equipment. 65.3 112.4 108.8 105.9 103.9 102.2 101.4 101.5 101.3 100.5 100.9 102.3 101.6 101.6 Intermediate products ...... 6644..99 97.4 95.8 94.3 92.3 90.0 9900..55 8899..22 8899..66 9911..11 9922..99 9922..99 9922..99 9933..00 For NOTE see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • INDUSTRIAL PRODUCTION: S.A. A 49 INDUSTRY GROUPINGS (1967 = 100) 11996677 pprroo-- 11997744 1974 1975 ppoorr-- aavveerr-- GGrroouuppiinngg ttiioonn aaggee Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept. Oct.f Nov.6 Manufacturing 88.55 124.4 120.9 116.1 111.7 109.2 107.7 107.9 108.2 109.5 110.6 112.8 114.6 115.2 115.5 Durable 52.33 120.7 117.9 112.2 108.2 104.8 103.5 103.3 102.5 103.2 103.5 105.4 106.9 107.1 107.5 Nondurable 36.22 129.7 125.4 121.9 117.0 115.6 113.7 114.8 116.1 118.6 120.8 123.4 125.6 126.9 127.3 Mining and utilities 11.45 127.3 125.9 125.7 127.0 127.3 128.8 128.1 126.5 126.8 127.4 127.0 128.3 128.5 128.3 Mining 6.37 109.3 105.0 104.4 107.0 108.6 108.9 108.5 105.9 106.3 106.4 105.0 106.2 106.2 106.3 Utilities 5.08 149.9 152.3 152.6 153.0 150.9 154.0 153.1 152.3 152.6 153.7 154.6 156.2 156.6 155.9 Durable manufactures 12.55 127.5 124.4 116.0 112.4 107.7 105.1 103.2 99.8 100.8 100.7 104.1 105.9 105.4 105.6 Primary metals 6.61 124.1 121.0 108.6 107.2 102.1 98.1 95.0 89.9 91.8 92.8 96.5 96.7 96.6 96.5 Iron and steel, subtotal 4.23 119.9 117.7 107.9 110.6 105.0 103.1 99.4 90.1 88.7 87.0 90.4 90.5 91.3 91 .0 Fabricated metal products 5.94 131.4 128.2 124.1 118.2 113.7 112.9 112.4 100.9 110.9 109.7 112.7 116.1 115.3 115.9 Machinery and allied goods 32.44 116.3 114.9 109.6 105.4 102.4 101.5 101.9 101.7 102.3 102.4 103.7 105.0 105.5 106.1 Machinery 17.39 128.1 128.9 124.8 119.6 115.6 112.2 110.8 109.0 108.2 108.4 110.0 111.3 112.6 113.8 Nonelectrical machinery 9.17 133.8 135.1 132.5 126.7 123.6 119.3 116.9 113.7 112.3 112.9 115.1 116.5 117.2 118.0 Electrical machinery 8.22 125.2 121.7 116.3 111.5 106.6 104.3 104.0 103.8 103.8 103.4 104.4 105.5 107.3 109.0 9.29 96.9 93.7 83.6 78.9 77.1 81.0 84.7 87.6 90.5 91.0 92.9 94.9 94.8 94.7 Motor vehicles and parts 4.56 113.2 107.1 86.4 7S.'2 77.6 85.4 93.1 95.0 100.0 103.2 107.2 111 .3 111 .0 110.1 Aerospace and misc. trans, eq... 4.73 81.1 80.9 80.9 79.5 76.6 76.7 76.6 80.4 81.3 79.3 79.1 79.2 79.3 80.0 Instruments 2.07 143.9 142.3 139.5 139.1 134.2 130.6 131.1 129.7 130.9 132.4 132.1 134.5 133.9 135.4 Ordnance, private and Govt 3.69 86.1 86.6 86.6 86.2 86.9 86.7 86.7 86.7 87.7 86.4 84.3 84.3 83.9 82.9 Lumber, clay, and glass 4.44 123.6 113.7 111.0 109.6 104.6 102.6 104.8 105.9 107.0 108.3 110.6 112.9 112.5 113.4 Lumber and products 1.65 120.1 105.2 101.3 99.9 99.6 99.8 104.1 108.0 110.3 112.0 114.5 114.9 113.6 Clay, glass, and stone products 2.79 125.7 118.8 116.9 115.3 107.8 104.2 105.4 104.7 105.1 106.2 108.3 111 .7 111.8 Furniture and miscellaneous 2.90 136.1 129.0 128.4 120.0 119.6 118.7 117.6 119.7 120.1 121.2 123.1 124.1 123.9 122.5 Furniture and fixtures 1.38 126.9 120.5 120.4 110.6 110.6 106.7 105.6 109.6 107.9 109.4 109.6 110.0 109.1 Miscellaneous manufactures 11..5522 114444..44 113366..99 113355..77 112288..99 128.0 129.7 112288..55 112299..00 113311..11 113311 ..88 113355..33 113366..77 113377..66 Nondurable manufactures 6.90 108.9 101.9 96.3 88.9 89.6 87.5 90.4 93.2 94.9 97.4 100.2 104.0 106.7 110066..22 Textile mill products 2.69 122.7 112.8 102.9 95.6 93.3 96.8 100.4 103.8 106.9 110.7 115.0 121.2 112222..44 Apparel products 33..3333 105.4 100.1 98.0 94.0 92.6 86.4 88.2 90.9 91.5 92.9 95.8 96.1 Leather and products ..8888 77.3 74.7 69.7 66.1 66.7 63.5 68.0 70.0 71.2 73.5 71.7 81 .2 83.3 7.92 121.0 115.7 112.3 108.2 106.6 104.2 102.4 103.9 107.3 107.3 110.8 112.8 115.5 116.2 Paper and products 3.18 134.0 124.3 116.1 114.3 109.5 104.5 105.8 105.8 109.5 111 .7 116.4 121.2 126.9 Printing and publishing 4.74 112.3 110.0 109.8 104.1 104.7 104.0 100.2 102.6 105.9 104.4 107.1 107.2 107.8 \Q6.9 Chemicals, petroleum, and rubber...1. 1.92 151.7 146.5 141.6 136.5 132.4 130.2 131.0 132.5 136.2 140.2 143.6 146.5 147.1 147.6 Chemicals and products 7.86 154.3 148.3 143.1 139.0 134.6 133.6 132.8 135.7 138.2 143.4 146.3 149.3 150.6 151.4 Petroleum products 1.80 124.0 127.0 125.8 126.8 123.7 120.1 120.2 118.5 122.4 124.6 126.7 127.0 126.9 112277..66 Rubber and plastics products 2.26 164.4 155.7 148.9 135.4 132.0 126.8 133.5 132.7 140.1 141.6 147.8 151.8 151.3 Foods and tobacco 9.48 124.8 123.8 123.5 120.0 121.3 120.0 122.4 122.4 123.5 124.8 125.2 125.6 126.0 126.1 Foods 8.81 126.2 125.4 125.7 121.2 122.3 121.3 122.9 123.8 125.1 126.3 126.7 126.9 112277..44 112277..44 Tobacco products ..6677 106.4 103.8 96.2 104.7 108.4 102.6 111155..99 110033..88 110022..22 110044..88 110055..77 110099..33 Mining 1.26 117.2 120.7 117.9 119.1 116.2 113.4 113.3 106.2 101.5 105.0 107.2 107.0 107.0 110077..66 Metal mining .51 129.2 136.8 134.7 133.8 131.1 125.4 125.8 114.8 110.6 110.3 119.2 118.2 118.3 Stone and earth minerals .76 109.1 109.8 106.4 109.0 106.1 105.1 104.7 100.4 95.3 101.4 98.9 99.5 99.1 Coal, oil, and gas 5.11 107.3 101.2 101.1 103.9 106.8 107.7 107.4 105.8 107.6 106.7 104.4 106.0 106.1 105.9 Coal .69 105.1 67.6 85.3 111.3 117.5 117.4 112.2 113.6 120.4 120.6 105.7 113.6 114.6 118.5 4.42 107.7 106.4 103.6 102.9 105.0 106.1 106.6 104.5 105.5 104.5 104.2 104.8 104.8 103.9 Utilities Electric 3.90 159.5 162.9 116633..00 162.5 161.1 165.4 116644..11 116633..00 116633..33 116644..77 116655..88 116677..99 Gas 11..1177 111177..99 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 Industrial Production release. System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 BUSINESS ACTIVITY; CONSTRUCTION • DECEMBER 1975 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices 4 facturing2 In- Ca- Market dustry pacity NNoonnaagg-utiliza- Con- rriiccuull-- PPPPeeeerrrriiiioooodddd Products tion struc- ttuurraall TToottaall Whole- TTToootttaaalll in mfg. tion eemm-- Em- Pay- rreettaaiill Con- sale TToottaall Final MMaattee-- MMaannuu-- o ( u 19 tp 6 u 7 t t c ra o c n t - s mm pp ee ll nn oo tt yy —— -- p m lo en y t - rolls ssaalleess33 sumer m c o o d m i - ty Inter- rriiaallss ffaaccttuurr-- = 100) TToottaall 11 Con- Equip- mediate iinngg 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. 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 .3 116.8 103.2 149.2 133.1 134.7 1974 124.8 123.1 121.7 128.8 111 .7 128.3 127.4 124.4 78.9 168.6 119.1 102.1 157.1 147.7 160.1 1974-—Oct 124.8 122.9 122.3 128.2 114.0 125.3 128.1 124.6 148.0 119.6 101.4 162.6 175 153.0 170.2 Nov 121 .7 121.4 120.9 126.3 113.2 123.0 122.1 120.9 75.7 154.0 119.0 99.3 157.5 170 154.3 171.9 Dec 117.3 118.7 118.2 123.4 110.7 120.5 114.8 116.1 176.0 118.0 96.5 153.2 171 155.4 171.5 1975-—Jan 113.7 115.4 114.9 120.1 107.8 117.6 110.5 111 .7 135.0 117.4 93.9 149.5 176 156.1 171.8 Feb 111 .2 113.7 113.3 118.8 105.3 115.2 107.4 109.2 68.2 139.0 116.6 91 .2 143.5 179 157.2 171 .3 Mar 110.0 112.4 112.2 118.2 103.9 112.7 105.9 107.7 153.0 116.1 90.3 143.3 176 157.8 170.4 Apr 109.9 112.9 112.6 119.6 103.0 113.4 105.2 107.9 189.0 116.1 89.9 144.7 179 158.6 172.1 May 110.1 113.4 113.7 121 .2 102.9 112.4 104.9 108.2 67.0 182.0 116.2 90.1 144.7 184 159.3 173.2 June 111.1 114.2 114.5 123.3 102.2 112.8 106.0 109.5 174.0 115.9 89.8 146.4 186 160.6 173.7 July 112.2 115.3 115.7 125.5 102.2 114.3 106.8 110.6 165.0 116.4 89.7 148.7 190 162.3 175.7 Aug.r. . . . 114.2 115.8 115.9 125.7 102.3 115.4 111.5 112.8 69.0 208.0 116.9 90.9 154.2 191 162.8 176.7 Sept.r 116.1 116.7 116.7 126.5 103.1 116.7 115.4 114.6 157.0 117.4 92.0 157.0 189 163.6 177.7 Oct.r 116.6 116.9 116.9 127.2 102.7 117.0 116.2 115.2 160.0 117.7 92.5 158.5 '192 164.6 178.9 Nov 116.8 117.1 117.1 127.4 102.6 117.3 116.4 115.5 117.7 9922..55 115588..99 119944 117788..22 1 Employees only: excludes personnel in the Armed Forces. Construction contracts: McGraw-Hill Informations Systems Company 2 Production workers only. Revised back to 1973. 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 TTyyppee ooff oowwnneerrsshhiipp aanndd 11997733 11997744 ttyyppee ooff ccoonnssttrruuccttiioonn Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total construction contracts 1 99,304 93,076 7,227 6,179 7,304 5,100 4,955 6,574 9,598 9,143 9,324 9,044 10,037 7,692 7,767 By type of ownership: Public 26,563 32,209 2,720 2,391 2,496 2,254 2,031 2,182 2,768 2,875 3,891 3,784 3,040 2,725 2,544 Private * 72,741 60,867 4,508 3,788 4,809 2,846 2,924 4,393 6,830 6,268 5,432 5,260 6,997 4,967 5,223 By type of construction: Residential building 1 45,696 34,174 2,457 1,931 1,715 1,562 1,583 2,316 3,029 3,073 3,116 3,093 2,784 2,966 3,189 Nonresidential building 31,534 33,859 2,710 2,618 2,451 2,233 2,199 2,402 2,987 2,877 3,169 3,165 2,666 2,526 2,629 Nonbuilding 22,074 25,042 2,061 1,630 3,139 1,305 1,172 1,856 3,582 3,193 3,040 2,786 4,587 2,200 1,949 Private housing units authorized... 11,,882200 11,,007744 811 770 837 689 701 677 837 912 949 11,,004422 995 '1,095 11,,009922 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, NorE.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im- McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data may differ from annual totals because adjustments cent for total and private construction, in each case, and by 8 per cent for are made in accumulated monthly data after original figures have been residential building. published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • CONSTRUCTION A 51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 2 Nonresidential Conser- Total Total d R en e t s i i a - l Total In tr d i u al s - B m u C i e l o r d m c i i n - a g l s b O in u t g i h s l e d * r - Other Total M ta i r l y i- H w ig ay h - d v e m a v a t n e e i d n l o o t n p - 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 77,503 51,967 25,568 26,399 6,131 6,982 4,993 8,293 25,536 695 8,591 2,124 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 93,728 65,404 33,200 32,204 6,783 9,401 4,971 11.049 27,964 879 9,250 1,783 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 124,077 93,893 54,288 39,605 4.676 13,462 5,898 15,569 30,184 1,087 10,429 2,172 135,456 102,894 57,623 45,271 6,243 15,453 5,888 17,687 32,562 1,170 10,559 2,313 135,481 97,079 47,044 50,053 7,902 15,945 5,797 20,409 38,402 1,185 12,083 2,782 134,466 95,576 44,182 51,394 8,702 16,372 5,701 20,619 38,890 1,103 12,374 3,029 131,948 93,795 42,503 51,292 8,890 15,939 5,697 20,766 38,153 1.102 11,140 2,999 134,047 92,529 41,060 51,469 9,006 15,842 5,571 21.050 41,518 1,169 11,973 3,358 132,274 91,169 39,556 51,613 8,412 15,646 5,903 21,652 41,105 1.223 12,356 2,842 128,862 89,023 38,523 50,500 8,724 14,971 5,883 20,922 39,839 1,319 11,993 3,329 125,501 85,687 37,999 47,688 7,869 13,032 5,363 21,424 39,814 1,337 11,377 3,024 120,892 84,607 37,894 46,713 7,500 12,765 5,636 20,812 36,285 1,473 10,963 2,769 121,490 84,044 38,844 45,200 8,197 12.109 5.268 19,626 37,446 1,180 12,227 3,132 125,928 84,026 39,834 44,192 7.677 11,756 5,415 19,344 41,902 1,120 12,251 3,529 126,662 86,029 40,986 45,043 7,714 11,978 5,319 20,032 40,633 1,309 129,261 87,750 42,075 45,675 7,621 12,586 5,611 19,857 41,511 1,383 131,649 90,020 43,358 46,662 7,889 12,431 5,843 20,499 41,629 1,662 131,757 90,795 45,292 45,503 7,157 12,109 5,460 20,777 40,962 1,472 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- 2-or- 1- 2-or- ship- Total family more Total family more Total family more ments family family family For sale Sold (end of period) 196 6 1,165 779 386 217 461 196 196 7 1,292 844 448 240 487 190 196 8 1,508 899 608 1,320 859 461 318 490 218 196 9 1,467 811 656 1,399 807 591 885 350 535 413 448 228 197 0 1,434 813 621 1,418 802 617 922 381 541 401 485 227 197 1 2,052 1,151 901 1,706 1,014 692 1.254 505 749 497 656 294 197 2 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 197 3 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 197 4 1,337 450 1,692 931 760 1,189 516 673 371 501 407 1974—Oct.. 1,106 792 314 1,627 908 719 1,322 553 769 227 433 409 Nov. 1,017 802 215 1,657 893 763 1.255 541 714 204 435 404 Dec. 682 198 1 ,606 852 754 1,229 545 684 195 382 400 1975—Jan.. 999 739 260 1,535 964 571 1,176 522 654 185 404 404 Feb.. 1,000 733 267 1,320 770 550 1,156 522 634 219 411 409 Mar. 985 775 210 1,305 734 571 1,113 520 593 199 463 396 Apr.. 980 762 218 1,211 756 455 1,085 515 570 194 570 388 May, 1,130 887 243 1,276 832 444 1,066 518 548 224 586 383 June, 1,094 884 210 1,165 785 380 1.044 515 529 210 556 378 July. 1,235 935 300 1,269 901 368 1,042 522 520 225 549 382 Aug. 1,269 987 282 1,229 855 374 1.045 534 511 235 583 378 Sept. 1,268 929 339 1,214 895 319 1,049 533 516 215 565 382 Oct.' 1,458 ,103 355 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 • DECEMBER 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 t p t i a u t l u l a t n i t o i o o n n n a - l lab N or o t f i o n r ce T l f a o o b r t o c a e r l Employed1 Une m ra m e t p n e2 t l oy- (N.S.A.) (N.S.A.) (S.A.) Total Total In c u n l o t n u a ra g l r i- agric I u n lture U pl n o e y m ed - (pe S r .A ce .) n t; industries 196 9 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 197 3 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 197 4 150,827 57,587 93,240 91,011 85,935 82,443 3,492 5,076 5.6 1974—Nov. 151,812 57,991 93,920 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 Sept. 154.052 59,087 95,361 93,191 85,418 81,872 3,546 7,773 8.3 Oct.. 154,256 58,825 95,607 93,443 85,441 82,019 3,422 8,002 8.6 Nov. 154,476 59,533 95,134 92,979 85,278 81,986 3,292 7,701 8.3 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 r u in f g a c- Mining c C o o n t n i s o t t r n r a u c c t - Tr t a i p o n u n s b p l a o i n c r d t a- Finance Service G m ov e e n r t n utilities 196 9 70,442 20,167 619 3,525 4,435 14,704 3,562 11,228 12,202 197 0 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 197 1 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 197 2 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 197 3 76,896 20,068 644 4,015 4,644 16,674 4,091 13,021 13,739 197 4 78,413 20,046 694 3,957 4,696 17,017 4,208 13,617 14,177 SEASONALLY ADJUSTED 1974—No v 78,374 19,638 722 3,826 4,683 17,058 4,226 13,822 14,399 Dec 77,723 19,190 686 3,770 4,659 16,935 4,229 13,833 14,421 1975—Ja n 77,319 18,798 723 3,749 4,603 16,903 4,219 13,857 14,467 Feb 76,804 18,375 724 3,592 4,565 16,879 4,210 13,865 14,594 Mar 76,468 18,226 729 3,467 4,506 16,851 4.207 13,864 14,618 Apr 76,462 18,155 732 3,441 4,508 16,847 4,209 13,878 14,692 May 76,510 18,162 738 3,439 4,491 16,857 4.208 13,889 14,726 June 76,343 18,100 741 3,392 4,469 16,877 4.202 13,871 14,691 July 76,679 18,084 743 3,395 4,464 16,984 4.203 13,990 14,816 Aug 77,023 18,254 749 3,415 4.466 17,016 4,218 14,054 14,855 Sept 77,310 18,417 752 3,432 4.467 17,045 4,239 14,113 14,845 Oct.f 77,508 18,495 774 3,404 4,473 17,037 4,248 14,151 14,926 Nov.** 77,549 18,233 763 3,409 4,478 17,025 4,254 14,183 14,940 NOT SEASONALLY ADJUSTED 1974—Oc t 79,465 20,174 718 4,120 4,714 17,249 4,220 13,825 14,445 Nov 79,151 19,799 719 3,952 4,697 17,361 4,213 13,808 14,602 Dec 78,462 19,209 681 3,695 4,659 17,608 4,208 13,764 14,638 1975—Ja n 76,207 18,573 715 3,348 4,548 16,700 4.177 13,608 14,538 Feb 75,772 18,165 714 3,208 4.492 16,493 4,172 13,699 14,829 Mar 75,778 18,037 719 3,197 4,470 16,530 4.178 13,753 14,894 Apr 76,177 18,000 726 3,310 4,472 16,691 4,192 13,878 14,908 May 76,689 18,071 740 3,439 4,487 16,819 4,208 13,986 14,939 June 77,183 18,255 756 3,555 4,523 16,971 4,248 14,079 14,796 July 76,439 18,007 758 3,605 4,504 16,936 4,266 14,144 14,219 Aug 76,900 18,450 763 3,688 4.493 16,959 4,273 14,162 14,112 Sept 77,614 18,694 758 3,659 4,503 17,084 4,243 14,113 14,560 Oct.® 78,147 18,690 763 3,622 4,500 17,130 4.240 14,179 15,023 Nov.f 78,314 18,651 760 3,522 4,491 17,328 4.241 14,169 15,152 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 1973, series has been adjusted to Mar. 1974 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • PRICES A 53 CONSUMER PRICES (1967 = 100) Housing Health and recreation PPeerriioodd iitt AA eemm llll ss FFoooodd Total Rent H ow s o h n m ip e e r - - F c a o o u n i a d e l l l t e r G a i l n c e a d i c s t - y o n F i p a n i u n e s g d r h r s - a - - AA uupp pp aa kk pp nn ee aa dd ee rr ee pp ll TT pp tt oo rr ii aa rr oo nn tt nn aa ss -- -- 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 r d v d e - r s tion tion ices 1929 5555511111.....33333 4444488888.....33333 7777766666.....00000 4444488888.....55555 1933 3333388888.....88888 3333300000.....66666 5555544444.....11111 3333366666.....99999 1941 4444444444.....11111 3333388888.....44444 555333...777 5555577777.....22222 444000...555 888111...444 4444444444.....88888 444444...222 333777...000 444111...222 444777...777 444999...222 1945 5555533333.....99999 5555500000.....77777 555999...111 5555588888.....88888 444888...000 777999...666 6666611111.....55555 444777...888 444222...111 555555...111 666222...444 555666...999 1960 8888888888.....77777 8888888888.....00000 999000...222 9999911111.....77777 8866!! 33 888999...222 999888...666 93.8 8888899999.....66666 888999...666 85.1 777999...111 999000...111 888777...333 888777...888 196 5 9999944444.....55555 9999944444.....44444 999444...999 9999966666.....99999 9922..77 999444...666 999999...444 95.3 9999933333.....77777 999555...999 93.4 888999...555 999555...222 999555...999 999444...222 196 6 9999977777.....22222 9999999999.....11111 999777...222 9999988888.....22222 9966..33 999777...000 999999...666 97.0 9999966666.....11111 999777...222 96.1 999333...444 999777...111 999777...555 999777...222 196 7 111110000000000.....00000 111110000000000.....00000 111000000...000 111110000000000.....00000 110000..00 111000000...000 111000000...000 100.0 111110000000000.....00000 111000000...000 100.0 111000000...000 111000000...000 111000000...000 111000000...000 196 8 111110000044444.....22222 111110000033333.....66666 111000444...222 111110000022222.....44444 110055..77 111000333...111 111000000...999 104.4 111110000055555.....44444 111000333...222 105.0 111000666...111 111000444...222 111000444...777 111000444...666 196 9 111110000099999.....88888 111110000088888.....99999 111111000...888 111110000055555.....77777 UU66..00 111000555...666 111000222...888 109.0 111111111111111.....55555 111000777...222 110.3 111111333...444 111000999...333 111000888...777 111000999...111 197 0 111111111166666.....33333 111111111144444.....99999 111111888...999 111111111100000.....11111 112288..55 111111QQQ...111 111000777...333 113.4 111111111166666.....11111 111111222...777 116.2 111222000...666 111111333...222 111111333...444 111111666...000 197 1 111112222211111.....33333 111111111188888.....44444 111222444...333 111111111155555.....22222 113333..77 111111777...555 111111444...777 118.1 111111111199999.....88888 111111888...666 122.2 111222888...444 111111666...888 111111999...333 111222000...999 197 2 111112222255555.....33333 111112222233333.....55555 111222999...222 111111111199999.....22222 114400..11 111111888...555 111222000...555 121.0 111112222222222.....33333 111111999...999 126.1 111333222...555 111111999...888 111222222...888 111222555...555 197 3 111113333333333.....11111 111114444411111.....44444 111333555...000 111112222244444.....33333 114466..77 111333666...000 111222666...444 124.9 111112222266666.....88888 111222333...888 130.2 111333777...777 111222555...222 111222555...999 111222999...000 197 4 111114444477777.....77777 111116666611111.....77777 111555000...666 111113333300000.....22222 116633..22 222111444...666 111444555...888 140.5 111113333366666.....22222 111333777...777 140.3 111555000...555 111333777...333 111333333...888 111333777...222 1974—Oc t 111115555533333.....00000 111116666666666.....11111 111555666...777 111113333322222.....22222 117700..11 222222555...555 111555111...555 149.0 111114444411111.....11111 111444222...999 145.2 111555666...333 111444333...000 111333777...888 111444111...444 Nov 111115555544444.....33333 111116666677777.....88888 111555888...333 111113333322222.....88888 117711..77 222222999...222 111555444...000 151.0 111114444422222.....44444 111444333...444 146.3 111555777...555 111444444...222 111333888...888 111444222...777 Dec 111115555555555.....44444 111116666699999.....77777 111555999...999 111113333333333.....55555 117744..00 222222888...888 111555666...777 152.3 111114444411111.....99999 111444333...555 147.5 111555999...000 111444555...333 111333999...888 111444333...999 1975—Jan . 111115555566666.....11111 111117777700000.....99999 111666111 ...222 111113333344444.....00000 117755..66 222222888...999 111666000...222 153.2 111113333399999.....44444 111444333...222 148.9 111666111...000 111444666...555 111444111...000 111444444...888 Feb 111115555577777.....22222 111117777711111.....66666 111666222...777 111113333355555.....11111 117777..33 222222999...555 111666222...777 154.7 111114444400000.....22222 111444333...555 150.2 111666333...000 111444777...888 111444111...888 111444555...999 Mar 111115555577777.....88888 111117777711111.....33333 111666333...666 111113333355555.....55555 117788..22 222222888...333 111666444...000 155.6 111114444400000.....99999 111444444...888 151.1 111666444...666 111444888...999 111444222...000 111444666...555 Apr 111115555588888.....66666 111117777711111.....22222 111666444...777 111113333355555.....99999 117799..44 222222999...000 111666666...333 156.8 111114444411111 .....33333 111444666...222 152.1 111666555...888 111444999...555 111444333...555 111444666...888 May 111115555599999.....33333 111117777711111.....88888 111666555...333 111113333366666.....44444 118800..11 222333000...222 111666777...333 157.4 111114444411111.....88888 111444777...444 152.6 111666666...888 111444999...999 111444333...888 111444777...111 June 111116666600000.....66666 111117777744444.....44444 111666666...444 111113333366666.....99999 118811..44 222333000...666 111666999...444 158.1 111114444411111.....44444 111444999...888 153.2 111666888...111 111555000...333 111444444...111 111444777...333 July 111116666622222.....33333 111117777788888.....66666 111666777...111 111113333377777.....33333 118822..33 222333444...111 111777000...444 158.3 111114444411111.....11111 111555222...666 154.0 111666999...888 111555111...222 111444444...444 111444777...666 Aug 111116666622222.....88888 111117777788888.....11111 111666777...777 111113333388888.....00000 118822..88 222333555...777 111777111...222 158.8 111114444422222.....33333 111555333...666 154.6 111777000...999 111555111...444 111444444...777 111444888...111 Sept 111116666633333.....66666 111117777777777.....88888 111666888...999 111113333388888.....44444 118833..99 222333888...777 111777444...000 C160.1 CCCCC111114444433333.....55555 111555555...444 155.4 111777222...222 111555222...111 111444666...000 111444888...000 Oct 111116666644444.....66666 111117777799999.....00000 111666999...888 111113333399999.....33333 118844..88 222444333...333 111777444...222 160.9 111114444444444.....66666 111555666...111 156.3 111777333...555 111555222...999 111444666...666 111444888...555 NOTE.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities m c t A o o ie m d l s l i - - p F u r a c o r t d m s - c f f e P a o e s r n o 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 e tc r b . , - L b e u e t m c r . , - P e a t p c e . r, M e a t l e c s t , . - e c M a q e h n r u i a y d n i - p - - F t u e u t r r c n e . , i - N t m m a o l i e l n n i - - c - T e p t q r o i a u o r n n i t p a s - - - n c M e e o l i l s u a - s ment erals ment! 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 171.9 187.8 189.7 165.8 139.8 144.5 227.4 172.9 148.5 165.8 166.9 186.7 152.7 136.9 163.4 135.1 140.7 171.5 183.7 188.2 166.1 138.4 143.2 229.0 174.0 149.4 165.4 167.2 184.6 154.0 137.7 164.3 137.0 142.4 171.8 179.7 186.4 167.5 137.5 142.1 232.2 176.0 149.6 164.7 169.8 185.5 156.6 138.8 168.5 137.1 145.5 171.3 174.6 182.6 168.4 136.5 141.7 £32.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 170.4 171.1 177.3 168.9 134.3 143.2 233.0 181.8 149.7 169.6 170.0 186.1 158.8 138.5 170.8 139.5 146.8 172.1 177.7 179.4 169.7 134.4 147.5 236.5 182.4 149.4 174.9 169.7 185.7 159.7 138.5 173.0 139.9 147.3 173.2 184.5 179.0 170.3 135.2 147.7 238.8 182.1 148.9 183.0 169.8 185.1 160.4 138.6 173.1 139.9 147.5 173.7 186.2 179.7 170.7 135.9 148.7 243.0 181.2 148.6 181.0 169.8 184.5 161.0 139.0 173.3 140.1 147.5 175.7 193.7 184.6 171.2 136.8 149.3 246.6 181.4 150.1 179.6 170.0 183.4 161.7 139.2 174.7 140.1 147.7 176.7 193.2 186.3 172.2 137.6 149.3 252.4 182.1 150.0 179.7 170.0 184.3 162.2 139.8 175.8 140.5 147.8 177.7 197.1 186.1 173.1 138.4 151.3 254.9 182.2 150.8 179.9 170.3 185.5 163.1 140.1 176.1 141.1 148.2 178.9 197.3 186.2 174.7 141.3 152.4 256.5 182.3 151.5 179.1 170.9 187.2 164.1 141.1 177.1 146.6 147.6 178.2 191.7 182.6 175.4 143.2 154.4 257.0 182.9 151.8 178.3 171.3 187.0 165.3 141.5 177.7 147.2 148.6 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 NATIONAL PRODUCT AND INCOME • DECEMBER 1975 GROSS NATIONAL PRODUCT (In billions of dollars) Item 1933 1950 1970 1971 1972 1973 1974 III IV Gross national product. 103.1 55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.4 1,416.3 1,430.9 1,416.6 1,440.9 Final purchases 101.4 57.2 120.1 278.0 972.6 1,048.6 1,149.3 1,279.6 1,383. 1,407.6 1.413.1 1.435.8 1,471.9 Personal consumption expenditures. 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 901.3 895.8 913.2 938.6 Durable goods 9.2 3.5 9.6 30.5 91.3 103.9 118.4 130.3 127.5 136.1 120.7 124.9 130.6 Nondurable goods 37.7 22.3 42.9 98.1 263.8 278.4 299.7 338.0 380.2 389.0 391.7 398.8 410.1 Services 30.3 20.1 28.1 62.4 262.6 284.8 310.9 336.9 369.0 376.2 383.5 389.5 397.9 Gross private domestic investment 16.2 1.4 17.9 54.1 136.3 153.7 179.3 209.4 209.4 205.8 209.4 163.1 148.1 Fixed investment 14.5 3.0 13.4 47.3 131.7 147.4 170.8 194.0 195.2 197.1 191.6 182.2 179.1 Nonresidential 10.6 2.4 9.5 27.9 100.6 J 04.6 116.8 136.8 149.2 150.9 151.2 146.9 142.7 Structures 5.0 .9 2.9 9.2 36.1 37.9 41.1 47.0 52.0 51.0 53.7 52. 49.1 Producers' durable equipment.. 5.6 1.5 6.6 18.7 64.4 66.6 75.7 89.8 97.1 99.9 97.5 94.2 93.6 Residential structures 4.0 .6 3.9 19.4 31.2 42.8 54.0 57.2 46.0 46.2 40.4 35.3 36.4 Nonfarm 3.8 .5 3.7 18.6 30.7 42.3 53.4 56.7 45.2 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 8.7 17.8 -19.2 -31.0 Nonfarm -1.4 4.0 6.0 4.3 4.9 7. 11.4 11.9 6.6 17.5 -17.8 -30.6 Net exports of goods and services. 1.1 .4 1.3 1.8 3.6 -.2 -6.0 3.9 2.1 -3.1 1.9 8.8 16.2 Exports 7.0 2.4 5.9 13.8 62.9 65.4 72.4 100.4 140.2 143.6 147.5 142.2 136.0 Imports 5.9 2.0 4.6 12.0 59.3 65.6 78.4 96.4 138. 1 146.7 145.7 133.4 119.8 Government purchases of goods and services 8.5 8.0 24.8 37.9 219.5 234.2 255.7 276.4 309.2 312.3 323.8 331.6 338.1 Federal 1.3 2.0 16.9 18.4 96.2 97.6 104.9 106.6 116.9 117.2 124.5 126.5 128.4 National defense 13.8 14.1 74.6 71.2 74.8 74.4 78.7 78.4 84.0 84.7 84.8 Other 3.1 4.3 21.6 26.5 30.1 32.2 38.2 38.8 40.6 41.8 43.6 State local 7.2 6.0 7.9 19.5 123.3 136.6 150.8 169.8 192.3 195.1 199.3 205.1 209.7 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 823.1 804.0 780.0 783.6 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 Item 1933 1941 1970 1972 1973 1974 National income. 86.8 40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,143.5 1,155.5 1,165.4 1,150.7 1,175.4 Compensation of employees. 51.1 29.5 64.8 154.6 603.9 643.1 707.1 786.0 855.8 868.2 877.7 875.6 Wages and salaries.... 50.4 29.0 62.1 146.8 542.0 573.6 626.8 691.6 750.7 761.5 769.2 765.1 Private. .... 45.5 23.9 51.9 124.4 426.9 449.5 491.4 545.1 592.4 602.5 605.1 597.4 Military .3 .3 1.9 5.0 19.6 19.4 20.5 20.6 21.2 20.8 22.0 22.0 Government civilian. 4.6 4.9 8.3 17.4 95.5 104.7 114.8 126.0 137.1 138.2 142. 145.7 Supplements to wages and salaries.. .7 2.7 61.9 69.5 80.3 94.4 105.1 106.7 108.6 110.5 Employer contributions for social insurance 2.0 4.0 29.7 33.1 38.6 48.4 53.6 54.5 54.6 55.2 Other labor income .6 .7 3.8 32.2 36.4 41.7 46.0 51.4 52.3 54.0 55.3 Proprietors' income 15.1 5.9 17.5 37.5 66.9 69.2 75.9 96.1 93.0 92.1 91.6 84.9 Business and professional. 9.0 3.3 11.1 24.0 50.0 52.0 54.9 57.6 61.2 62.3 62.5 62.7 Farm 6.2 2.6 6.4 13.5 16.9 17.2 21.0 38.5 31.8 29.8 29.1 22.2 Rental income of persons 5.4 2.0 3.5 9.4 23.9 25.2 25.9 26.1 26.5 26.6 26.8 27.0 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 105.8 103.4 94.3 Profits before tax 10.0 1.0 17.7 42.6 74.0 83.6 99.2 122.7 140.7 157.0 131.5 101.2 Profits tax liability 1.4 .5 7.6 17.8 34.8 37.5 41.5 49 55.7 62.7 52.0 39.0 Profits after tax 8.6 .4 10.1 24.9 39.3 46.1 57.7 72.9 85.0 94.3 79.5 62.3 Dividends 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 33.2 33.3 33.8 Undistributed profits 2. -1.6 5.7 16.0 14.6 21.1 30.3 43.3 52.4 61.1 46.2 28.5 Inventory valuation adjustment. .5 -2.1 -2.5 -5.0 -4 -4.9 -7.0 -17.6 -35.1 -51.2 -28.1 -7.0 Net interest 4.7 4.1 3.2 2.0 36.5 41.6 45.6 52.3 61:6 62.8 65.9 68.9 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 IItteemm 11992299 11993333 11994411 11995500 11997700 11997711 11997722 11997733 11997744 III IV I II III Gross national product 103.1 55.6 124.5 284.8 977.1 1.054.9 1,158.0 1,294.9 1,397.4 1,416.3 1,430.9 1,416.6 1,440.9 1,503.6 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 87.3 93.7 102.9 110.8 119.5 120.7 122.9 125.2 127.4 130.0 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 93.5 102.7 110.0 119.2 126.9 129.5 129.8 132.2 135.4 139.6 Business transfer payments .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.3 5.3 5.4 5.5 5.5 Statistical discrepancy .7 .6 .4 1.5 -6.4 -2.3 -3.8 -5.0 .4 3.0 4.8 1.6 -4.4 .2 Plus: Subsidies less current surplus of government enterprises -.1 .1 .2 1.7 1.1 2.3 .6 -2.9 -2.4 -2.7 — 1.6 -1.6 --11..33 Equals: National income 86.8 40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,142.5 1,155.5 1,165.4 1,150.7 1,175.4 1,227.0 Less: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 69.2 78.7 92.2 105.1 105.6 105.8 103.4 94.3 104.9 112222..55 Contributions for social insurance .2 .3 2.8 6.9 57.7 63.8 73.0 91.2 101.5 103.0 103.2 104.6 105.4 107.7 Excess of wage accruals over disbursements .0 .6 .0 j -.5 -1.5 .0 .0 .0 .0 Plus: Government transfer payments.. .9 1.5 2.6 14.3 75.1 89.0 98.6 113.0 134.6 138.7 145.8 158.7 170.9 172.6 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 42.7 43.6 43.7 45.0 45.8 Dividends 5.8 2.0 4.4 8.8 24.7 25.0 27.3 29.6 32.7 33.2 33.3 33.8 34.0 34.5 Business transfer payments .6 .7 .5 .8 4.0 4.3 4.6 4.9 5.2 5.3 5.3 5.4 5.5 5.5 Equals: Personal income 85.9 47.0 96.0 227.6 808.3 864.0 944.9 1.055.0 1,150.5 1,168.2 1,186.9 1,193.4 1,220.5 1,255.2 Less: Personal tax and nontax payments 2.6 1.5 3.3 20.7 116.6 117.6 142.4 151.3 170.8 175.1 178.1 178.0 142.0 117755..66 Equals: Disposable personal income. . . 83.3 45.5 92.7 206.9 691.7 746.4 802.5 903.7 979.7 993.1 1,008.8 1,015.5 1,078.5 1,079.6 Less: Personal outlays 79.1 46.5 81.7 193.9 635.5 685.9 749.9 829.4 902.7 927.6 922.3 939.5 964.7 995.0 Personal consumption expenditures 77.2 45.8 80.6 191.0 617.6 667.1 729.0 805.2 876.7 901.3 895.8 913.2 938.6 996688..88 Consumer interest payments.. 1.5 .5 .9 2.4 16.8 17.7 19.8 22.9 25.0 25.3 25.5 25.4 25.2 25.4 Personal transfer payments to foreigners .3 .2 .2 .5 1.0 1.1 1.1 1.3 1.0 .9 .9 .9 .9 .8 Equals: Personal saving 4.2 -.9 11.0 13.1 56.2 60.5 52.6 74.4 77.0 65.5 86.5 75.9 113.8 84.6 Disposable personal income in constant (1958) dollars 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 602.9 594.8 591.0 620.2 611.4 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 1974 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.* Total personal income 1,055.0 1,150.5 ,185.0 ,184.5 ,191.0 ,191.1 1,193.4 ,195.7 ,203.1 1,214.3 1,244.1 1238.9 1,255 .91,270.9 ,283.6 Wage and salary disbursements. 691.7 751.2 773.0 767.8 766.6 765.7 763.6 766.0 768.0 772.9 778.1 782.2 792. 799.6 808.3 Commodity-producing industries 251.9 270.9 279.5 272.3 269.3 266.4 260.7 260.5 261.2 262.2 264.6 266.4 271, 275.1 278.4 Manufacturing only 196.6 211.3 219.4 214.2 209.7 206.4 202.9 203.1 203.8 204.5 206.7 208.4 212, 216.0 219 0 Distributive industries. ... 165.1 178.9 183.8 183.9 183.8 183.2 184.0 183. 184.3 186.1 187.0 187.8 190, 191.3 193.0 Service industries 128.2 142.6 146.9 147.4 148.3 149.8 151.2 152.6 152.4 153.5 154.6 155.0 156. 158.2 159.4 Government 146.6 158.8 162.8 164.2 165.2 166.2 167.6 169.2 170.3 171. 171.9 173.0 173. 175.0 177.6 Other labor income 46.0 51.4 53.5 54.0 54.5 54.9 55.3 55.7 56.2 56.7 57.2 57.7 58. 58.7 59.2 Proprietors' income 96.1 93.0 91.7 91.6 91.5 88.7 85.0 80.9 83.6 86.4 88.4 91.6 94, 97.3 97.8 Business and professional... 57.6 61.2 62.5 62.5 62.5 62.7 62. 62.5 63.0 63.4 63.9 64.1 64. 65.2 65.6 Farm 38.5 31.8 29. 29.0 26.0 22.2 18.4 20.6 23.0 27.5 29. 32.1 32.2 29.2 24.5 Rental income 26.1 26.5 26. 26.9 27.0 27.0 27.0 27. 27. 27.2 27. 27.7 28.0 26.7 27.2 Dividends 29.6 32.7 33.6 32.7 33.9 33. 33.7 33.9 34.0 34.2 34. 34.8 35.2 33.5 34.0 Personal interest income 90.6 103.8 109.5 111.1 111.9 112.5 113.3 114.8 116.9 119.8 121. 123.8 125.8 108.0 119.0 Transfer payments 117.8 139.8 149.8 156.1 158.6 165.5 168.3 168.9 169.9 176.3 178. 180.0 180.8 147.6 190.2 Less: Personal contributions for social insurance 42.8 47.9 48.9 48.5 48.4 49.5 49.2 49.3 49.4 49.7 50.0 50.2 50.7 51.1 51.6 Nonagricultural income 1,008.0 1,109.0 1,145.7 1,145.2 1,151.4 1,154.3 1,160.1 1,166.2 1,171.1 1,179.7 1,207.9 1199.5 1,214.01,226.6 1,239.0 Agricultural income 47.0 41.5 39.3 39.3 39.5 36.8 33.3 29.6 32.1 34.6 36.2 39.4 42.0 44.3 44.6 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 • DECEMBER 1975 SUMMARY OF FUNDS RAISED IN U.S. 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 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 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 85.4 121.9 152.1 177.7 168.1 182.2 153.4 107.0 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 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 Commercial mortgages 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 Farm mortgages 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 67.2 77.1 83.5 70.7 38.6 29 30 Foreign 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 .1 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 Total funds raised by financial sectors 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 U.S. Government securities 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 Private financial sectors 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 "24." i 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 Corporate bonds .9 1.3 1.1 1.5 3.1 5.1 7.0 2.3 1.4 2.0 .9 2.3 8 9 Mortgages -.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 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 1122 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 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 Comrrercial 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 1.6 .8 5.1 2.9 2.7 3.1 -.9 18 19 Savings and loan associations .1 -1.7 l.'l 4.1 i Is -.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 33..00 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 11..11 -.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 NOTE.—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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 nonfinancial sectors 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 176.2 181.9 117700..00 117799..66 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 Monetary authorities 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 —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 domestic funds advanced 12 Total net advances 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 149.1 159.2 138.5 151.5 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 67.4 82.1 52.2 -1.3 17 18 Less: FHLB advances .9 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 74.9 110.7 153.4 158.8 131.5 155.7 106.9 115.0 19 20 Commercial banking 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 64.6 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 Other finance 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.7 3.7 7.9 1.1 23 24 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.5 155.7 106.9 115.0 24 25 Private domestic deposits 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 72.5 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 44.8 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 8.4 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 31.8 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 Other 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 78.8 102.3 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 21.8 26.6 16.9 70.4 42 43 Money 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 27.9 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 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 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- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 U.S. BALANCE OF PAYMENTS • DECEMBER 1975 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1974 1975 Credits (+), debits (-) 1972 1973 1974 III IV Merchandise trade balance i -6,409 955 -5,277 -1,459 -2,315 -1,380 1,830 Exports 49,388 71,379 98,309 24,218 25,034 26,593 27,188 Imports -55,797 -70,424 -103,568 -25,677 -27,349 -27,973 -25,358 Military transactions, net -3,621 -2,317 -2,158 -646 -513 -498 -349 Travel and transportation, net. -3,024 -2,862 -2,692 -717 -721 -741 -572 Investment income, net 2 4,321 5,179 10,121 1,964 2,354 2,559 1,176 U.S. direct investments abroad 2 6,416 8,841 17,679 4,399 4,700 4,080 2,156 Other U.S. investments abroad 3,746 5,157 8,389 2,048 2,354 2,358 2,148 Foreign investments in the United States ; -5,841 -8,819 -15,946 -4,483 -4,700 -3,879 -3,128 Other services, net 2 2,803 3,222 3,830 936 960 1,049 1,093 Balance on goods and services 3. -5,930 4,177 3,825 78 -235 989 3,178 Not seasonally adjusted 73 -2,871 2,348 4,230 Remittances, pensions, and other transfers. -1,606 -1,903 -1,721 -457 -439 -448 Balance on goods, services, and remittances. -7,537 2,274 2,104 -379 -692 Not seasonally adjusted -394 -3,340 550 2,730 U.S. Government grants (excluding military). -2,173 ,938 4-5,461 -1,408 -808 1,904 3,812 Balance on current account... -9,710 335 4-3,357 -1,787 -1,500 -649 -727 Not seasonally adjusted.. -1,868 -4,104 1,-29899 32,,007035 U.S. Government capital flows excluding nonscheduled repayments, net 5 -1,706 -2,933 4408 273 -195 -985 -1,015 Nonscheduled repayments of U.S. Government assets 137 289 U.S. Government nonliquid liabilities to other than foreign official reserve agencies 234 1,154 710 21 278 125 541 Long-term private capital flows, net -69 177 -8,447 -999 -2,157 -5,554 -2,202 U.S. direct investments abroad -3,530 -4,968 -7,455 -1,572 -1,828 -3,310 -1,041 Foreign direct investments in the United States 380 2,656 2,224 1,700 -1 -653 340 Foreign securities -618 -759 -1,990 -313 -304 -726 -2,021 U.S. securities other than Treasury issues 4,507 4,055 672 440 204 -663 650 Other, reported by U.S. banks -1,158 -706 -1,150 -906 48 -269 -437 Other, reported by U.S. nonbanking concerns 351 -101 -748 -348 -276 67 307 Balance on current account and long-term capital 5. -11,113 -977 -10,686 -2,302 -3,574 -6,513 -673 Not seasonally adjusted -2,441 -6,097 -4,600 -137 Nonliquid short-term private capital flows, net -1,542 -4,238 -12,949 -5,248 -1,462 -2,331 1,911 Claims reported by U.S. banks -1,457 -3,886 -12,186 -5,319 -1,618 -2,432 1,715 Claims reported by U.S. nonbanking concerns -306 -1,183 -2,603 -682 -276 -137 250 Liabilities reported by U.S. nonbanking concerns. 221 831 1,840 753 432 238 -54 Allocations of Special Drawing Rights (SDR's) 710 Errors and omissions, net -1,884 -2,436 4,593 1,332 1,126 1,127 1,870 Net liquidity balance -13,829 -7,651 -19,043 -6,218 -3,910 -7,717 3,108 Not seasonally adjusted.. -6,654 -5,551 -6,594 4,253 Liquid private capital flows, net 3,475 2,343 10,669 2,020 4,028 2,870 -6,375 Liquid claims -1,247 -1,951 -6,113 -1,297 -228 -1,968 -4,755 Reported by U.S. banks -742 -1,161 -5,980 -1,306 -732 -1,599 -5,073 Reported by U.S. nonbanking concerns.. -505 -790 -133 9 504 -369 318 Liquid liabilities— 4,722 4,294 16,782 3,317 4,256 4,838 -1,620 Foreign commercial banks 3,717 3,028 12,636 2,413 3,150 2,773 -2,684 International and regional organizations. 103 377 1,295 298 219 1,308 862 Other foreigners 902 889 2,851 606 887 757 202 Official reserve transactions balance, financed by changes in—. -10,354 -5,308 -8,374 -4,198 118 -4,847 -3,267 Not seasonally adjusted -4,048 -1,683 -4,049 -2,220 O Li t q h u e i r d r l e i a a d b i i l l y it ie m s a t r o k e f t o a r b e l i e g n l i o a f b f i i l c it i i a e l s a g to e n f c o ie re s ign official agen- 9,734 4,456 ,481 3,930 751 3,864 2,758 No c n ie li s q 6 u id liabilities to foreign official reserve agencies re- 399 1,118 672 183 135 631 841 U. p S o . r o t f e f d i c b ia y l r U es .S e . r v G e o a v s t s ets, net 1 3 8 2 9 -4 2 7 0 5 9 ,4 6 3 5 4 5 -345483 -1,0 - 0 1 3 2 1 1 3 5 7 -3 - 2 6 6 Gold 547 SDR's -703 9 -172 -29 -123 -20 -5 Convertible currencies 35 233 3 -85 -152 241 -14 Gold tranche position in IMF 153 -33 ,265 -244 -728 -84 -307 Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14) 4,492 2,809 1,811 564 352 490 787 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) 4,521 8,124 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21) 548 945 Balances excluding allocations of SDR's: Net liquidity, not seasonally adjusted -14,539 -7,651 -19,043 -6,654 -5,551 -6,594 4,253 Official reserve transactions, N.S.A -11,064 -5,308 -8,374 -4,048 -1,683 -4,049 -2,220 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • FOREIGN TRADE; U.S. RESERVE ASSETS A 59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1972 1973 1974 1975 1972 1973 19743 1975 1972 1973 19743 1975 Month: Jan... 4,074 ,955 7,150 9,412 4,436 5,244 6,498 9,622 -361 -289 +652 -211 Feb.. . 3,824 ,070 7,549 8,789 4,473 5,483 7,318 7,872 -649 -413 +231 +917 Mar... 3,869 ,311 7,625 8,716 4,515 5,414 7,742 7,336 -647 -103 -117 + 1,380 Apr... 3,820 ,494 8,108 8,570 4,417 5,360 8,025 8,013 -596 + 133 +83 +557 May.. 3,882 ,561 7,652 8,145 4,486 5,703 8,265 7,093 -604 -142 -612 + 1,052 June.. 3,971 ,728 8,317 8,692 4,468 5,775 8,577 6,954 -497 -47 -260 + 1,737 July... 4,074 ,865 8,307 8,885 4,565 5,829 8,922 7,908 -491 + 37 -615 +977 Aug... 4,191 ,042 8,379 8,996 4,726 6,011 9,267 7,961 -535 + 32 -888 + 1,035 Sept... 4,176 ,420 8,399 9,165 4,612 5,644 8,696 8,189 -436 +776 -297 +976 Oct.. . 4,312 ,585 8,673 9,288 4,738 5,996 8,773 8,212 -426 +589 -100 + 1,076 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 27,046 13,903 17,483 26,885 24,057 -1,461 + 844 -1,800 +2,989 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 beactions 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 ar o f Total Tot G al o 2 ld st T oc re k a 1 s ury v c fo u e C c r r r o i t e r e i n e i b s g - n l n e - p R o I e s M s i i n e t F i r o v n e SDR's3 E m n o d n t o h f Total Tota G l o 2 ld s T to re ck a sury v c fo u C e c r r r o i e t r e i n e i b s g - n l n e - p R o e I s s M i e t F r io v n e SDR's 3 1961.. 18,753 16,947 16,889 116 1,690 1974 1962.. 17,220 16,057 15,978 99 1,064 Nov 15,840 11,652 11,567 43 1,816 2,329 1963.. 16,843 15,596 15,513 212 1,035 Dec.... 15,883 11,652 11,652 5 1,852 2,374 1964.. 16,672 15,471 15,388 432 769 1975— 1965.. 15,450 13,806 13,733 781 863 Jan 15,948 11,635 11,635 2 1,908 2,403 1966.. 14.882 13,235 13,159 1,321 326 Feb 16,132 11,621 11,621 2 2,065 2,444 1967.. 14,830 12,065 11,982 2,345 420 Mar 16,256 11,620 11,620 19 2,194 2,423 1968.. 15,710 10,892 10,367 3,528 1,290 Apr 16,183 11,620 11,620 2 2,168 2,393 1969.. 416,964 11,859 10,367 42,781 2,324 May.... 16,280 11,620 11,620 4 2,218 2,438 June.... 16,242 11,620 11,620 25 2,179 2,418 1970.. 14,487 11,072 10,732 629 1,935 851 July 16,084 11,618 11,618 2 2,135 2,329 1971.. 512,167 10,206 10,132 5 276 585 1,100 Aug 16,117 11,599 11,599 28 2,169 2,321 19726. 13,151 10,487 10,410 241 465 1,958 Sept 16,291 11,599 11,599 247 2,144 2,301 19737 . 14,378 11,652 11,567 552 2,166 Oct 16,569 11,599 11,599 413 2,192 2,365 1974. . 15.883 11,652 11,652 1,852 2,374 Nov 816,592 11,599 11,599 423 82,234 82,336 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 7 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: 8 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 Includes gain of $67 million resulting from revaluation of the German in the IMF are also valued on this basis beginning July 1974. At valuamark in Oct. 1969, of which $13 million represents gain on mark holdings tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end at time of revaluation. of Nov. amounted to $2,404 million reserve poistion in IMF^ $2,304 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserve assets, $16,730. revalued to reflect market exchange rates as of Dec. 31, 1971. 6 Total reserve assets include an increase of $1,016 million resulting NOTE.—See Table 20 for gold held under earmark at F.R. Banks for from change in par value of the U.S. dollar on May 8, 1972; of which, foreign and international accounts. Gold under earmark is not included 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 cormilitary 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 • DECEMBER 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—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 76 103 Feb... 6,478 11,621 231 169 312 882 1,781 927 97 76 103 Mar.. 49,760 6,478 11,620 31,660 231 169 312 882 1,781 927 97 76 103 Apr... 6,478 11,620 231 169 312 882 1,781 927 97 76 103 May. . 6,478 11,620 231 169 312 882 1,781 927 97 76 103 June., 2*49,760 6,478 11,620 p31,660 231 169 312 882 1,781 927 97 76 103 July.. 6,478 11,618 231 169 312 882 1,781 927 97 76 103 Aug.. 6,478 11,599 231 169 312 882 1,781 927 97 76 Sept.. 6,478 11,599 231 312 882 1,781 927 97 76 Oct.?. 6,478 11,599 231 312 882 1,781 927 76 End of Ger- Greece India Iran Iraq Italy Japan Kuwait Leb- Libya Mexi- Netherperiod many anon lands 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 3,130 801 94 350 93 188 2,059 197 3 4.261 4,966 148 293 159 173 3,483 891 120 388 103 196 2,294 1974—Oct.. 4.262 4,966 150 293 158 173 3,483 891 138 389 103 154 2,294 Nov., 4,262 4,966 150 293 158 173 3,483 891 138 389 103 154 2,294 Dec.. 4,262 4,966 150 293 158 173 3,483 891 148 389 103 154 2,294 1975—Jan.., 4,262 4,966 150 293 158 173 3,483 891 140 389 103 154 2,294 Feb.. 4,262 4,966 150 293 158 173 3,483 891 140 389 103 154 2,294 Mar., 4,262 4,966 150 293 158 173 3,483 891 154 389 103 154 2,294 Apr.. 4,262 4,966 150 293 158 173 3,483 891 154 389 103 154 2,294 May. 4,262 4,966 150 293 158 173 3,483 891 175 389 103 154 2,294 June. 4,262 4,966 150 293 158 173 3,483 891 154 389 103 154 2,294 July., 4,262 4,966 150 293 158 173 3,483 891 154 389 103 154 2,294 Aug.. 4,262 4,966 150 293 158 173 3,483 891 154 389 103 2,294 Sept., 4,262 4,966 150 158 173 3,483 891 160 r 389 103 2,294 Oct.? 4,262 4,966 158 173 3,483 891 103 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 Settlements2 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—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 99 151 886 148 472 260 May 67 1,175 129 742 602 244 3,513 99 151 886 148 472 239 June 67 1,175 129 734 602 244 3,513 99 151 886 148 472 262 July 67 1,175 129 742 602 244 3,513 99 151 135 r 472 264 Aug 66667777 111,,,111777555 111222999 777744444444 666000222 222244444444 3333,,,,555511113333 99999999 111155551111 113355 444477772222 222266664444 Sept 66667777 111,,,111777555 111222999 777766662222 666000222 222244444444 3333,,,,555511113333 99999999 111155551111 444477772222 222255554444 rrrr Oct.25 66667777 777755554444 222244444444 3333,,,,555511113333 99999999 111155551111 444477772222 222255556666 i Includes reported or estimated gold holdings of international and The figures included for the Bank for International Settlements are regional organizations, central banks and govts, of countries listed in the Bank's gold assets net of gold deposit liabilities. This procedure this table, and also of a number not shown separately here, and gold to be avoids the overstatement of total world gold reserves since most of the distributed by the Tripartite Commission for the Restitution of Monetary gold deposited with the BIS is included in the gold reserves of individual Gold; excludes holdings of the U.S.S.R., other Eastern European coun- countries. tries, and 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

DECEMBER 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 liabililiabili- foreigners ties to ties to non- IMF Liquid mone- Total arising Short- liabili- Short- tary from term Market- Non- Other ties term Market- intl. gold liabili- able market- readily to com- liabili- able and retrans- 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. organiby bonds bonds liabili- abroad6 by bonds zations 8 banks and and ties 5 banks and in notes 3 notes4 in notes3,7 U.S. U.S. 26,394 800 14,425 12,467 1,183 766 9 5,817 3,387 3,046 341 1,965 J29.313 800 15,790 13,224 1,125 1,283 158 7,271 3,730 3,354 376 1,722 129,364 800 15,786 13,220 1,125 1,283 158 7,303 3,753 3,377 376 1,722 29,568 834 15,825 13,066 1,105 1,534 120 7,419 4,059 3,587 472 1,431 J31,144 1,011 14,840 12,484 860 583 913 10,116 4.271 3.743 528 906 \31,019 1,011 14,895 12,539 860 583 913 9,936 4.272 3.744 528 905 J35,819 1,033 18,201 14,034 908 1,452 1,807 11,209 4,685 4,127 558 691 \35,667 1,033 18,194 14,027 908 1,452 1,807 11,085 4,678 4,120 558 677 /38,687 1,030 17,407 11,318 529 3,219 2,341 14,472 5,053 4,444 609 725 \38,473 1,030 17,340 11,318 462 3,219 2,341 14,472 4,909 4,444 465 722 »o/45,755 1,109 1015,975 11,054 346 10 3,070 1,505 23,638 4,464 3,939 525 659 145,914 1,019 15,998 11,077 346 3,070 1,505 23,645 4,589 4,064 525 663 J47,009 566 23,786 19,333 306 3,452 695 17,137 4,676 4,029 647 844 146,960 566 23,775 19,333 295 3,452 695 17,169 4,604 4,039 565 846 J67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1292,456 1266,827 i243,923 5,701 1215,530 1,673 17,694 5,932 5,502 430 2,003 112,137 73,836 50,921 4,880 16,196 1,839 28,095 8,058 7,627 439 2,148 115,698 75,200 51,860 4,906 16,196 2,238 29,782 8,336 7,855 481 2,503 (119,097 76,658 53,057 5,059 16,196 2,346 30,314 8,803 8,305 498 3,322 \119,010 76,665 53,064 5,059 16,196 2,346 30,079 8,943 8,445 498 3,322 118,036 75,960 51,832 5,177 16,324 2,627 29.135 8,752 8,244 508 4,189 119,332 78,689 54,310 5,279 16,324 2,776 27,297 9,093 8,483 610 4.253 119,854 79,210 53,696 6,003 16,324 3,187 27,404 9,047 8.411 636 4,193 120,810 79,085 53,521 5,941 16,365 3,258 28,794 8,843 8,188 655 4,088 122,078 79,799 52,395 6,064 17,925 3,415 28,910 9,115 8,492 623 4.254 121,388 80,533 51,879 6,119 19,027 3,508 28.136 9,192 8,538 654 3,527 122,268 79,705 50,318 6,160 19,474 3,753 29,157 9,122 8.412 710 4,284 123,629 79,259 49,917 6,276 19,324 3,742 30,364 9,651 8,980 671 4,355 122,768 77,824 48,088 6,452 19,524 3,760 30,322 9,904 9,203 701 4,718 123,129 79,763 49,557 6,624 19,524 4,058 28,461 10,011 9,273 738 4,894 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 cercost 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. 12 Includes $ 162 million increase in dollar value of foreign currency 5 Includes long-term liabilities reported by banks in the United States liabilities revalued to reflect market exchange rates, as follows: shortand debt securities of U.S. Federally-sponsored agencies and U.S. cor- term liabilities, $15 million; and nonmarketable U.S. Treasury notes, porations. $147 million. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commer- NOTE.—Based on Treasury Dept. data and on data reported to the cial banks abroad and to other foreigners. Treasury Dept. by banks and brokers in the United States. Data correspond 7 Includes marketable U.S. Treasury bonds and notes held by commer- generally to statistics following in this section, except for the exclusion cial banks abroad. of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign 8 Principally the International Bank for Reconstruction and Develop- official nonreserve agencies, the inclusion of investments by foreign ment and the Inter-American and Asian Development Banks. official reserve agencies in debt securities of U.S. Federally-sponsored 9 Data on the 2 lines shown for this date differ because of changes agencies and U.S. corporations, and minor rounding differences. Table in reporting coverage. Figures on first line are comparable with those excludes IMF holdings of dollars, and holdings of U.S. Treasury letters shown for the preceding date; figures on second line are comparable with of credit and nonnegotiable, non-interest-bearing special U.S. notes held those shown for the following date. by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1975 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries 2 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—Oct.. . 73,836 43,019 3,805 4,046 17,329 2,947 2,690 Nov... 75,200 43,193 3,705 3,768 18,673 3,204 2,657 J76,658 44,185 3,662 4,419 18,604 3,161 2,627 Dec. 3. \76,665 44,185 3,662 4,419 18,611 3,161 2,627 1975—Jan.r., 75,960 43,331 3,621 3,659 19,555 3,232 2,562 Feb.'". 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. 79,085 45,063 3,251 4,506 20,062 3,493 2,710 Mayr. 79,799 45,310 3,101 4,600 20,423 3,448 2,917 Juner. 80,533 45,276 3,008 4,723 20,457 3,800 3,269 July. 79,705 44,241 2,966 4,748 21,299 3,319 3,132 Aug.. 79,259 44,068 2,929 4,924 20,972 3,392 2,974 Sept.* 77,824 43,347 3,011 4,830 20,734 3,139 2,763 Oct.?. 79,763 44,851 3,049 4,244 21,999 3,018 2,602 1 Includes Bank for International Settlements and European Fund. institutions of foreign countries, as reported by banks in the United States; 2 Includes countries in Oceania and Eastern Europe, and Western Euro- foreign official holdings of marketable and nonmarketable U.S. Treasury pean dependencies in Latin America. securities with an original maturity of more than 1 year, except for non- 3 See note 9 to Table 5. marketable notes issued to foreign official nonreserve agencies; and investments 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. 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. in ment5 Treasury Total i Deposits U.S. Other foreign bills and Treasury short- cur- certifibills and term rencies Demand Time2 cates Demand Time2 certifi- liab.4 cates 3 55,428 55,036 6,459 4,217 33,025 11,335 392 400 1,367 73 192 210 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 69,074 68,477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 88,642 87,924 11,228 9,822 34,187 32,686 719 2,000 125 92 93 91,835 91,091 12,860 9,567 35,212 33,452 744 2,339 128 95 285 J94,847 94,081 14,068 10,106 35,662 34,246 766 3,171 139 111 497 \94,760 93,994 14,064 10,010 35,662 34,258 766 3,171 139 111 497 93,132 92,412 12,284 10,053 38,108 31,966 721 3,921 123 111 1,234 94,065 93,332 12,135 10,202 40,428 30,567 733 3,976 118 102 1,260 93,006 92,325 12,319 10,043 40,094 29,869 682 3,496 189 116 777 94,103 93,362 11,691 10,390 40,424 30,857 742 3,601 99 126 781 93,651 92,986 11,925 10,374 40,628 30,059 665 3,853 115 133 1,994 92,006 91,423 12,595 10,536 38,265 30,026 584 3,453 106 133 996 92,002 91,442 12,215 10,372 38,553 30,301 560 4,115 146 134 2,518 93,515 92,953 12,215 10,804 38,518 31,416 562 4,253 110 148 3,156 92,244 91,690 13,435 10,491 36,642 31,122 554 4,631 107 127 3,008 91,826 91,190 12,141 10,273 37,749 31,028 635 4,534 132 130 2,397 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 63 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 9 Payable in dollars Payable in dollars Payable End of period in Total Deposits U.S. Other foreign Total Deposits U.S. Other Treasury short- cur- Treasury shortbills and term rencies bills and term Demand Time2 certifi- liab.4 Demand Time2 certifi- liab.7 cates 3 cates 3 197 2 59,284 8,204 5,401 31,523 13,659 496 40,000 1,591 2,880 31,453 3,905 197 3 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 1974—Oct... 86,643 11,104 9,730 34,094 30,996 719 50,921 2,168 4,400 33,634 10,591 Nov.., 89,497 12,732 9,472 34,927 31,622 744 51,860 2,472 4,058 34,467 10,736 Dec. 8 \ f 9 9 1 1 , , 5 6 8 7 9 6 1 13 3 , , 9 9 2 2 5 8 9 9 , , 9 8 9 9 5 9 3 3 5 5 , , 1 1 6 6 5 5 3 3 1 1 , , 8 8 2 3 2 4 7 7 6 6 6 6 5 5 3 3 , , 0 0 5 6 7 4 2 2 , , 9 9 5 5 1 1 4 4 , , 2 1 5 6 7 7 3 3 4 4 , , 6 6 5 5 6 6 1 1 1 1, ,0 1 6 63 6 1975—Jan.r. 89,211 12,161 9,942 36,874 29,513 721 51,832 2,185 4,201 36,531 8,916 Feb.r. 90,090 12,016 10,100 39,169 28,072 733 54,310 2,058 4,206 38,840 9,206 Mar.r 89,511 12,130 9,927 39,316 27,456 682 53,696 2,323 4,203 39,015 8,154 Apr.r, 90,503 11,592 10,264 39,643 28,263 742 53,521 2,147 4,193 39,316 7,864 May r, 89,797 11,811 10,241 38,634 28,448 665 52,395 2,175 4,331 38,372 7,517 June r, 88,553 12,490 10,403 37,269 27,807 584 51,879 2,564 4,321 36,994 8,000 July. 87,887 12,070 10,238 36,035 28,984 560 50,318 2.492 4,098 35,803 7,925 Aug.. . 89,261 12,104 10,656 35,362 30,576 562 49,917 2.493 4,239 35,055 8,130 Sept.2' 87,613 13,328 10,363 33,634 29,733 554 48,088 2,452 3,987 33,284 8,365 Oct.f. 87,291 12,009 10,143 35,351 29,153 635 49,557 2,447 3,939 34,983 8,188 To banksio To other foreigners Payable in dollars End of period Total Deposits U.S. Other Deposits U.S. Other Treasury short- Treasury short- Total bills and term Total bills and term Demand Time2 certifi- liab.4 Demand Time2 certifi- liab.7 cates cates 197 2 19,284 14,340 4,658 405 5 9,272 4,618 1,955 2,116 65 481 197 3 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 1974—Oct.. 35,722 27,504 6,361 1,908 268 18,967 7,626 2,574 3,422 193 1,438 Nov. 37,637 29,166 7,622 1.807 253 19,484 7,855 2,638 3,608 207 1,402 Dec.1 / \3 3 8 8 , , 5 6 2 1 5 9 2 29 9 , , 4 6 4 7 1 6 8 8 , , 2 24 4 8 4 1 1, , 9 9 3 4 6 2 2 2 3 3 2 2 1 19 9 , , 0 2 2 5 9 4 8 8 , , 4 3 4 0 5 4 2 2 , , 7 7 2 2 9 9 3 3 , , 7 7 9 9 6 6 2 2 7 7 7 7 1 1 , , 5 6 0 4 2 3 1975—Jan.r 37,379 28,414 7,351 1,982 172 18,909 8,244 2,625 3,760 171 1,688 Feb.' 35,780 26,564 7,138 2,033 155 17,238 8,483 2,820 3,861 174 1,628 Mar. 35,815 26,722 7,067 1.808 101 17,747 8.411 2,740 3,916 200 1,555 Apr. 36,982 28,052 6,889 2,102 120 18,941 8,189 2,556 3,969 207 1.457 May 37,403 28,245 6,852 1,821 105 19,466 8,493 2,784 4,089 156 1,465 June 36,674 27,553 7,067 1,949 99 18,438 8,537 2,859 4,133 176 1,369 July' 37,569 28,596 6,882 2,033 80 19,601 8.412 2,696 4,107 152 1.458 Aug. 39,344 29,803 6,907 1,824 77 20,994 8,980 2,705 4,592 230 1,452 Sept. 39,524 29,768 7,996 1,771 78 19,923 9,203 2,881 4,605 272 1,445 Oct.. 37,734 27,826 6,793 1,790 92 19,150 9,273 2,769 4,414 276 1,814 1 Data exclude "holdings of dollars" of the IMF. 8 Data on the 2 lines shown for this date differ because of changes in 2 Excludes negotiable time certificates of deposit, which are included reporting coverage. Figures on the first line are comparable in coverage in "Other short-term liabilities." with those shown for the preceding date; figures on the second line are 3 Includes nonmarketable certificates of indebtedness and Treasury comparable with those shown for the following date. bills issued to official institutions of foreign countries. 9 Foreign central banks and foreign central govts, and their agencies, 4 Includes liabilities of U.S. banks to their foreign branches, liabilities and Bank for International Settlements and European Fund. of U.S. agencies and branches of foreign banks to their head offices and 10 Excludes central banks, which are included in "Official institutions." foreign branches, bankers' acceptances, commercial paper, and negotiable time certificates of deposit. NOTE.—"Short term" obligations are those payable an demand or having 5 U.S. Treasury bills and certificates obtained from proceeds of sales of an original maturity of 1 year or less. For data on long-term liabilities gold by the IMF to the United States to acquire income-earning assets. reported by banks, see Table 9. Data exclude the holdings of dollars Upon termination of investment, the same quantity of gold was reac- of the International Monetary Fund; these obligations tQ the IMF constiquired by the IMF. tute contingent liabilities, since they represent essentially the artiount of 6 Principally the International Bank for Reconstruction and Develop- dollars available for drawings from the IMF by other member countries. ment and the Inter-American and Asian Development Banks. Data exclude also U.S. Treasury letters of credit and nopnegotiable, non- Includes difference between cost value and face value of securities in interest-bearing special U.S. notes held by the Inter^American Develop- IMF gold investment account. ment Bank and the International Development Association. 7 Principally bankers' acceptances, commercial paper, and negotiable time certificates of deposit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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) 1974 1975 Area and country Dec.1 Feb.r Mar.r Apr.r Mayr June July Aug. Sept.? Europe: Austria 607 607 597 624 599 629 627 627 661 667 688 Belgium-Luxembourg 2,506 2,506 2,391 2,647 2,539 2,810 2,875 3,070 2,982 2,891 2,865 Denmark 369 369 369 324 370 340 323 355 325 308 311 Finland 266 266 204 204 202 212 181 365 361 406 391 France 4,287 4,287 4,206 4,035 4,226 4,600 4,982 5,403 5,515 5,493 5,950 Germany 9,420 9,429 9,953 10,806 11,240 10,229 8,203 6,460 5,440 5,277 4,797 Greece 248 248 253 242 192 202 273 254 299 307 361 Italy 2,617 2,617 2,101 2,260 2,449 2,498 2,157 2,298 1,426 1,056 1,426 Netherlands 3,234 3,234 3,208 3,197 3,414 3,302 3,351 3,535 3,539 3,301 3,059 Norway 1,040 1,040 874 826 843 827 846 945 1,118 1,052 982 Portugal 310 310 310 303 288 247 267 264 279 268 207 Spain 382 382 379 320 358 361 341 362 392 288 459 Sweden 1,138 1,138 1,132 1,215 1,209 1,477 1,697 1,847 2,010 2,203 2,195 Switzerland 9,986 10,137 9,673 9,547 8,938 8,817 8,615 8,445 7,941 8,350 8,116 Turkey 152 152 169 131 243 103 87 124 106 134 116 United Kingdom 7,559 7,584 6,685 6,219 7,039 7,053 6,994 6,417 6,461 8,342 6,261 Yugoslavia 183 183 187 168 158 122 126 83 106 104 128 Other Western Europe2 4,073 4,073 3,136 2,934 2,641 2,516 2,511 2,527 2,535 2,266 2,396 U.S.S.R 82 82 65 59 35 34 61 62 29 50 39 Other Eastern Europe 206 206 172 120 218 123 148 370 181 160 272 Total 48,677 48,852 46,063 46,180 47,200 46,502 44,666 43,817 41,706 42,924 41,020 Canada 3,517 3,520 3,400 3,783 3,448 3,946 3,951 3,617 3,921 3,637 3,944 Latin America: Argentina 886 886 900 894 822 886 964 989 1,061 1,054 984 Bahamas 1,448 1,054 1,716 1,557 1,248 1,946 2,288 1,691 1,991 2,187 1,503 Brazil 1,034 1,034 859 927 1,065 1,077 984 1,081 853 921 1,016 Chile 276 276 284 281 258 278 260 289 301 280 293 Colombia 305 305 319 317 326 313 307 400 376 367 ;379 Mexico 1,770 1,770 1,747 1,814 1,668 1,727 1,876 1,819 1,794 1,811 f, 862 Panama 488 510 539 503 528 695 579 549 657 645 * 752 Peru 272 272 256 238 225 217 206 219 228 208 245 Uruguay 147 165 161 178 177 183 168 155 190 160 208 Venezuela 3,413 3,413 2,918 3,351 3,501 3,559 3,866 3,726 3,964 4,242 4,247 Other Latin American republics 1,316 1,316 1,211 1,263 1,348 1,401 1,353 1,506 1,410 1,364 1,466 Netherlands Antilles and Surinam 158 158 155 133 143 113 123 134 104 105 115 Other Latin America 526 596 960 505 507 761 905 998 1,496 1,513 1,904 Total 12,038 1,754 12,024 11,961 1,817 13,158 13,881 13,557 14,425 14,858 14,973 Asia: China, People's Rep. of (China Mainland) 50 50 50 73 62 63 56 65 50 55 94 China, Republic of (Taiwan).. 818 818 977 1,015 1,037 1,038 999 1,071 1,015 1,054 1,058 Hong Kong 530 530 558 546 528 543 596 598 540 577 741 India 261 261 179 177 183 127 168 145 133 214 214 Indonesia 1,221 1,221 1,327 1,083 497 582 279 365 527 289 234 Israel 386 389 419 476 511 493 538 472 369 343 322 Japan 10,897 10,897 10,442 10,909 11,390 10,993 11,109 11,223 11,669 11,218 11,128 Korea 384 384 315 327 311 345 341 361 366 374 342 Philippines 747 747 702 642 745 660 662 697 632 669 604 Thailand 333 333 337 327 455 446 342 370 284 255 207 Middle East oil-exporting countries 4,633 4,633 4,960 5,213 3,673 3,922 4,315 3,850 4,437 4,819 5,126 Other 813 820 1,043 923 978 905 861 906 777 919 970 Total 21,073 21,082 20,371 20,114 20,122 20,800 20,785 21,040 Africa: Egypt 103 103 105 106 92 112 113 514 253 295 183 South Africa 130 130 150 188 191 159 179 141 132 147 254 Oil-exporting countries 2,814 2,814 2,858 2,943 3,041 3,070 3,009 2,965 2,785 2,873 2,649 Other 504 504 553 574 524 526 594 572 558 553 560 Total 3,551 3,551 3,666 3,812 3,848 3,867 3,895 4,192 3,727 3,866 3,646 Other countries: Australia 2,742 2,742 2,661 2,568 2,761 2,856 3,069 3,185 3,231 3,114 2,912 All other 89 89 76 66 60 71 64 77 75 78 Total 2,831 2,831 2,748 2,644 2,828 2,916 3,140 3,249 3,308 3,189 2,989 Total foreign countries 91,676 91,589 89,211 90,090 89,511 90,503 89,797 88,553 87,887 89,261 87,613 International and regional: International, 2,900 2,900 3.643 3,683 3,222 3,291 3,600 3,205 3,844 3,950 4,351 Latin American regional 202 202 229 236 229 220 169 155 181 215 186 Other regional, 69 69 50 57 44 90 84 94 90 94 Total 3,171 3,171 3,921 3,976 3,496 3,601 3,853 3,453 4,115 4,254 4,631 Grand total 94,847 94,760 93,132 94,065 93,006 94,103 93,651 92,006 92,002 93,515 92,244 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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 data6 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 Cambodia 3 2 4 4 Iceland 12 8 11 21 20 Jordan 4 6 6 22 30 Ireland, Rep. of 22 62 53 29 29 Laos 3 3 3 3 5 Lebanon 55 62 68 119 180 Other Latin American republics Malaysia 59 58 40 63 92 Bolivia 65 68 102 96 93 Pakistan 93 105 108 91 118 Costa Rica 75 86 88 117 120 Singapore 53 141 165 240 215 Dominican Republic 104 118 137 127 214 Sri Lanka (Ceylon) 6 13 13 14 13 Ecuador 109 92 90 122 157 Vietnam 98 98 126 70 El Salvador 86 90 129 129 144 Guatemala 127 156 245 214 255 Haiti 25 21 28 35 34 Honduras 64 56 71 88 92 Other Africa: Jamaica 32 39 52 69 62 Ethiopia (incl. Eritrea) 75 i 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 Southern Rhodesia 1 2 1 2 3 Other Latin America: Sudan 3 3 2 4 14 Bermuda 127 242 201 107 100 Tanzania 16 12 12 11 21 British West Indies 100 109 354 116 610 Tunisia 11 7 17 19 23 Uganda 19 6 11 13 Other Asia: Zambia 37 22 66 22 18 Afghanistan 19 22 11 18 19 Burma 17 12 42 65 All other: New Zealand 34 39 33 47 36 1 Data in the 2 columns shown for this date differ because of changes 4 Comprises Algeria, Gabon, Libya, and Nigeria. in reporting coverage. Figures in the first column are comparable in 5 Data exclude holdings of dollars of the International Monetary Fund. coverage with those for the preceding date; figures in the second column 6 Asian, African, and European regional organizations, except BIS, are comparable with those shown for the following date. which is included in "Europe." 2 Includes Bank for International Settlements. 7 Represent a partial breakdown of the amounts shown in the other 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, categories (except "Other Eastern Europe"). and United Arab Emirates (Trucial States). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To intl. End of period Total and Official Other United Total All regional Total institu- Banksi foreign- Ger- King- Total Latin Middle Other other tions ers many dom Europe America East 2 Asia3 countries 197 2 1,018 580 439 93 259 87 165 63 260 136 10 197 3 1,462 761 700 310 291 100 159 66 470 132 16 1974—Oct... 1,293 849 445 111 263 71 153 43 228 116 13 Nov.. 1,354 905 449 112 262 75 152 43 227 116 17 Dec... 1,285 822 464 124 261 79 146 43 227 115 95 20 1975—Jan. ,406 846 560 223 266 71 144 58 218 118 189 21 Feb.". ,441 776 666 336 264 66 141 57 211 119 304 21 Mar.r ,548 800 748 426 255 67 131 57 202 120 394 21 Apr.T, ,414 626 788 466 253 68 129 57 205 121 429 22 May r, ,450 585 865 548 248 69 123 57 201 121 514 22 June r ,411 518 893 576 247 70 120 59 197 121 544 23 July. ,399 438 960 641 242 77 121 61 201 121 619 24 Aug.. ,352 378 974 651 243 81 120 61 202 123 619 24 Sept.f ,374 401 973 653 241 79 118 61 201 121 621 23 Oct. P. ,401 317 ,082 758 241 83 118 61 206 126 722 23 1 Excludes central banks, which are included with "Official institutions." Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial 2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, States). 3 Until Dec. 1974 includes Middle East oil-exporting countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1975 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.f Oct.P Europe: 10 10 10 11 12 14 14 14 14 14 14 14 14 9 9 9 9 9 208 209 209 209 209 210 217 216 250 276 251 252 252 252 252 251 252 252 278 275 275 30 30 30 31 30 29 32 34 37 37 41 44 54 United Kingdom 485 498 493 529 578 599 611 564 522 536 520 501 441 Other Western Europe r93 '89 r88 r80 r74 r7 9 r95 r97 97 98 102 114 152 5 5 5 5 5 5 5 5 5 5 5 5 5 Total 883 917 885 916 959 1,186 1,217 1,174 1,135 1,151 1,169 1,170 1,157 707 711 713 697 584 588 460 412 412 408 406 404 399 Latin America: Latin American republics 11 11 12 11 11 11 11 11 13 13 13 13 13 Netherlands Antilles and Surinam. . 23 60 83 82 142 130 125 118 134 178 149 149 158 Other Latin America 2 2 5 6 6 5 4 4 5 5 5 5 6 Total 36 74 100 99 159 147 140 133 152 196 167 168 177 Asia: Japan 3,497 3,498 3,498 3,498 3,496 3,496 3,496 3,496 3,496 3,496 3,496 3,502 3,520 Other Asia 12 12 212 325 541 1,071 1,121 1,291 1,397 1,418 1,498 1,648 1,798 Total 3,509 3,509 3,709 3,822 4,037 4,567 4,617 4,787 4,893 4,914 4,994 5,149 5,319 Africa 151 151 151 151 151 151 161 181 181 201 211 261 311 All other 25 25 Total foreign countries 5,311 5,387 5,557 5,685 5,889 6,639 6,596 6,687 6,773 6,870 6,945 7,153 7,362 International and regional: International 105 106 97 215 226 627 419 342 29 128 66 52 324 Latin American regional 44 59 53 53 51 71 69 57 44 40 35 35 35 Total 149 165 150 268 277 699 488 399 74 169 101 87 359 Grand total 5,460 5,552 5,708 5,953 6,167 7,337 7,084 7,087 6,847 7,039 7,048 7,240 7,721 NOTE.—Data represent estimated official and private holdings of mar- year, and are based on a benchmark survey of holdings as of Jan. 31,1971, ketable U.S. Treasury securities with an original maturity of more than 1 and monthly transactions reports (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, setions made Deposits curities, Total Official out- for acct. Other Total with for- coml. Other Total institu- Banks1 Others2 stand- of for- eigners and fitions ing eigners nance paper 1971 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1972 3 /15,471 14,625 5,674 163 2,975 2,535 3,269 3,204 2,478 846 441 223 182 115,676 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—Oct.r 34,662 33,632 10,033 378 6,317 3,338 5,356 10,072 8,171 1,030 547 243 240 Nov.r 36,848 35,820 10,999 446 7,121 3,433 5,345 10,724 8,752 1,028 515 283 229 Dec.r 39,030 37,835 11,301 381 7,342 3,579 5,637 11,237 9,659 1,195 668 289 238 1975—Jan.r 39,074 37,800 10,207 361 6,289 3,557 5,565 11,062 10,966 1,274 719 351 204 Feb.r 39,863 38,689 10,288 379 6,384 3,525 5,346 11,127 11,927 1,175 609 336 229 Mar.r 42,274 41,127 9,606 310 5,659 3,637 5,418 11,341 14,762 1,147 626 290 231 Apr.r 42,748 41,646 10,637 362 6,494 3,780 5,342 11,441 14,226 1,102 619 241 242 May r 45,831 44,775 11,839 366 7,622 3,852 5,537 10,959 16,440 1,056 478 301 277 June r 45,705 44,492 11,344 494 6,793 4,057 5,345 10,639 17,165 1,212 591 335 286 July r 45,537 44,362 11,700 572 6,835 4,292 5,383 10,204 17,076 1,175 608 296 271 Aug 45,439 44,291 13,082 626 7,960 4,497 5,314 9,977 15,917 1,148 610 240 298 Sept.f 45,560 44,429 12,692 572 7,510 4,610 5,314 10,071 16,353 1,130 576 236 319 Oct.f 47,394 45,870 12,697 605 7,574 4,518 5,485 10,119 17,570 1,524 952 231 341 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; figilres 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

DECEMBER 1975 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 67 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1974 1975 AArreeaa aanndd ccoouunnttrryy Dec. Jan.r Feb.' Mar.r Apr.r May r Juner July Aug. Sept.f Oct.f Europe: 21 18 38 22 16 19 17 16 28 20 19 Belgium-Luxembourg 384 401 591 550 674 647 600 620 598 536 553 46 54 53 41 53 49 64 62 60 46 50 Finland 122 132 136 137 147 137 133 143 143 130 127 673 892 893 896 859 726 584 666 741 906 1,326 589 390 435 387 399 389 428 482 448 443 490 64 52 42 46 54 37 37 46 50 54 56 Italy 345 351 277 287 334 329 339 363 336 363 441 Netherlands 348 195 210 187 157 221 218 288 338 313 265 119 115 106 104 114 126 98 91 106 102 101 Portugal 20 16 39 32 26 25 25 27 22 18 15 196 184 166 150 234 251 235 257 214 245 252 180 128 99 72 101 132 115 155 185 182 152 Switzerland 335 252 267 230 227 277 252 254 290 214 277 Turkey 15 23 17 19 37 30 40 26 43 56 54 United Kingdom 2,570 2,796 2,860 2,984 3,261 3,712 3,476 3,458 4,067 3,724 3,791 22 38 18 16 28 39 31 36 40 37 44 22 22 27 24 31 25 22 22 62 23 22 U.S.S.R 46 44 48 34 51 83 77 80 79 106 163 Other Eastern Europe 131 124 100 110 113 117 118 130 110 110 87 Total 6,245 6,226 6,421 6,327 6,918 7,373 6,910 7,222 7,960 7,630 8,286 2,776 2,889 2,628 2,919 2,896 3,081 2,837 2,651 2,340 2,626 2,739 Latin America: 720 783 808 869 958 1,007 1,111 1,105 1,115 1,219 1,344 3,398 3,737 4,699 5,926 5,714 7,723 8,658 7,813 6,627 6,432 7,240 Brazil 1,415 1,264 1,345 1,266 1 ,299 1,272 1,184 1,390 1,505 1,491 1,533 Chile 290 303 351 395 433 422 429 472 435 405 351 713 706 679 695 710 702 687 666 667 684 664 1,972 1,898 2,006 2,120 2,245 2,383 2,548 2,676 2,762 2,705 2,629 503 604 458 546 524 671 527 581 578 721 897 Peru 518 504 531 555 606 590 623 626 646 624 597 63 75 86 104 116 100 85 90 73 54 52 704 795 747 736 757 745 791 902 956 1,109 1,046 Other Latin American republics 852 886 902 902 954 960 953 1,043 992 998 1,025 Netherlands Antilles and Surinam...... 62 45 39 39 36 44 83 62 54 57 60 Other Latin America 1,156 1,455 1,557 1,603 1,744 2,240 1,843 1,692 2,104 1,700 | 1,912 Total 12,366 13,054 14,206 15,758 16,096 18,859 19,521 19,118 1 18,516 18,199 19,350 Asia: China, People's Rep. of (China Mainland) 4 1188 6655 1199 1111 1122 9 13 13 11 11 China, Republic of (Taiwan) 500 552266 473 500 448 434 483 463 503 600 609 223 203 184 291 210 288 315 201 190 231 257 14 19 22 17 21 17 20 23 38 21 17 157 142 159 145 134 119 115 113 88 91 86 255 271 284 322 299 287 312 362 358 398 1 388 12,514 11,821 11,246 11,605 10,887 10,603 10,245 10,308 10,292 10,396 j! 10,266 955 1,116 1,286 1,356 1,503 1,415 1,523 1,462 1,502 1,515 1 1,539 372 302 342 353 398 455 478 481 410 340 ! 335 Thailand 458 391 374 406 413 374 441 461 494 474 501 Middle East oil-exporting countries1 330 307 336 369 563 411 418 527 493 624 445 Other2 441 448 457 477 444 554 489 541 572 651 707 Total 16,222 15,562 15,228 15,860 15,33(0 14,969 14,848 14,955 14,954 15,353 15,162 Africa: 111 106 114 122 142 138 149 134 141 125 127 329 364 396 413 458 475 498 489 492 504 509 Oil-exporting countries 3 115 81 108 108 95 128 120 144 134 190 207 Other2 300 234 236 232 278 276 302 296 347 343 380 Total 855 785 853 875 973 1,018 10,68 1,064 11,14 1,162 1,223 Other countries: 466 443333 443311 443366 428 440 428 446 466 509 529 99 125 95 99 107 89 81 80 88 80 105 Total 565 558 526 535 535 528 509 526 554 589 635 Total foreign countries 39,030 39,073 39,863 42,274 42,747 45,829 45,694 45,536 45,436 45,558 47,394 International and regional. 1 1 1 1 2 11 1 3 1 Grand total 39,030 39,074 39,863 42,274 42,748 45,831 45,705 45,537 45,439 45,560 47,394 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, made to, and acceptances made for, foreigners; drafts drawn against and United Arab Emirates (Trucial States). foreigners, where collection is being made by banks and bankers for 2 Until Dec. 1974 includes oil-exporting countries. their own account or for account of their customers in the United States; 3 Comprises Algeria, Gabon, Libya, and Nigeria. and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held NOTE.—Short-term claims are principally the following items payable by U.S. monetary authorities. on demand or with a contractual maturity of not more than 1 year: loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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 in Total Total Middle Other All Other foreign Europe Canada Latin Japan East 3 Asia4 other long- curren- America coun- Official Other term cies tries2 institu- Banks1 foreign- claims tions ers2 1972. 5,063 4,588 844 430 3,314 435 40 853 406 2,020 353 918 514 1973. 5,996 5,446 1,160 591 3,694 478 72 1,272 490 2,116 251 1,331 536 1974—Oct..., 7.259 6,580 1,451 914 4,215 608 71 2,058 523 2,495 267 1,399 517 Nov.. . 7.260 6,570 1,383 933 4,253 618 72 1.991 506 2,574 260 1,395 534 Dec.r., 7,171 6,482 1,333 931 4,219 609 80 1,907 501 2,602 258 384 977 542 1975—Jan. r. , 7,284 6,631 1,370 972 4,289 583 69 1.992 490 2,603 248 373 1,019 560 Feb.r.. 7,480 6,799 1,378 1,035 4,386 611 69 2,096 500 2,675 248 388 972 601 Mar.r.. 7,569 6,900 1,399 1,063 4,438 598 70 2,126 500 2,695 247 385 1,024 592 Apr.. 7,598 6,915 1,239 1,110 4,566 605 78 2,188 505 2,786 242 247 1,002 630 May r., 7,885 7,194 1,282 1,192 4,720 610 81 2,325 491 2,851 254 242 1,042 679 Juner.. 7,930 7,118 1,269 1,204 4,645 719 92 2,285 461 2,841 264 241 1,135 684 July'. . 8,221 7,339 1,286 1,290 4,763 792 90 2,344 471 2,985 270 241 1,204 707 Aug... 8,257 7,386 1,276 1,336 4,774 787 85 2,387 438 3,003 259 237 1,204 728 Sept. *., 8,526 7,625 1,345 1,355 4,925 809 93 2,424 508 3,121 265 237 1,195 775 Oct.*.. 8,867 7,924 1,272 1,516 5,136 840 103 2,535 595 3,177 290 222 1,214 835 1 Excludes central banks, which are included with "Official institutions." Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 2 Includes international and regional organizations. (Trucial States). 3 Comprises Middle East oil-exporting countries as follows: Bahrain, 4 Until Dec. 1974 includes Middle East oil-exporting countries. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) Marketable U.S. Treas. bonds and notes i U.S. corporate Foreign bonds 3 Foreign stocks 3 securities2,3 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 Total4 Official Other 1973 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 1,907 1,721 185 2,013 209 1,804 239 16,897 13,013 3,883 1,847 6,278 1,282 -263 1975—Jan.-Oct.*, 1974—NOco tv 9 7 1 3 3 1 5 6 3 7 8 6 25 3 5 8 0 1 1 , , 4 6 1 2 4 4 1 1, , 5 5 1 1 8 1 -1 1 0 1 4 3 9 8 2 6 3 1 6 7 2 0 -2 -7 7 8 6 1 9 2 1 4 1 1 5 0 2 2 -6 2 2 2 Dec 156 -15 171 153 17 1,101 1,246 -145 101 524 -423 117 87 30 1975—Jan. r 245 118 127 118 9 1,246 913 333 131 1,207 -1,076 147 156 -9 Feb.' 214 9 205 102 102 1,699 1,445 254 118 554 -436 134 173 -39 Mar.r... . 1,171 421 749 724 25 1,760 1,155 604 197 647 -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 1,846 1,679 167 172 345 -173 145 157 -12 Juner -240 -326 86 56 31 1,754 1,332 422 215 855 -640 129 143 -15 July r 192 95 96 41 56 2,251 1,278 973 315 1,011 -696 109 119 -10 Aug 9 -67 77 117 -40 1,421 1,338 82 158 353 -195 89 256 -167 Sept.* 192 -14 206 175 31 1,257 1,124 134 182 287 -105 90 79 11 Oct.* 481 272 209 173 37 2,023 1,352 672 195 679 -484 137 161 -24 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to 1975 Middle East Africa official institutions of foreign countries. 2 Includes State and local govt, securities, and securities of U.S. Govt, Jan.-Oct.* 1,546 160 agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments Jan. 100 abroad. Feb. 209 3 Includes transactions of international and regional organizations. Mar. 525 4 Includes transactions (in millions of dollars) of oil-exporting countries Apr. 50 10 in Middle East and Africa as shown in the tabulation in the opposite May 175 20 column: June 106 July 1 "20" Aug.* 80 10 Sept.* 150 50 Oct.* 150 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1975 • INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur- Net pur- Ger- Nether- Switzer- United Total Total Middle Other Period chases Sales chases or many lands land King- Europe Canada America East1 Asia 2 Other 3 sales (—) dom Latin 197 3 12,767 9,978 2,790 439 339 686 366 2,104 99 577 5 197 4 7,634 7,095 540 203 330 36 -377 281 -6 288 10 1975—Jan.-Oct.p 12,597 9,105 3,492 213 170 300 733 493 2,035 219 1 ,080 115 33 1974—NOco tv 6 6 7 0 3 4 6 6 9 1 5 6 - - 2 1 2 3 1 5 7 -30 -2 9 - -3 3 5 9 - -5 82 1 -1 -7 1 7 5 -2 3 9 7 5 0 Dec 450 429 21 13 20 -10 -76 -30 14 27 1975—Jan. r IAS 554 193 36 17 42 111 12 86 -3 2 Feb.' 1,420 891 529 21 25 14 115 147 331 20 153 -4 15 Mar.r 1.152 913 240 12 15 40 39 38 150 15 85 -6 Apr. r 1,318 1,058 259 -15 23 26 44 54 136 -5 119 2 May r 1,527 1,149 378 -6 4 27 100 59 193 36 113 36 June r 1,321 1,063 258 32 1 19 71 36 152 21 87 9 -19 July 1,669 1,080 589 55 31 80 139 75 396 20 153 2 5 Aug.r 1.153 712 441 52 52 47 83 38 302 21 82 26 16 Sept.? 882 642 240 10 7 22 64 7 123 20 72 32 7 Oct.p 1,407 1,042 365 16 -7 17 36 48 142 59 130 21 6 1 Comprises Middle East oil-exporting countries as follows: Bahrain, 2 Until 1975 includes Middle East oil-exporting countries. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 3 Includes international and regional organizations. (Trucial States). ' 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger- Nether- Switzer- United Total Total Middle Other Total Other Intl. and Period many lands land Kingdom Europe Canada Latin East1 Asia 2 Africa countries regional America 1973 1,948 201 307 275 1,204 49 44 588 52 I974r 993 96 96 329 672 50 43 632 -456 1975—Jan.-Oct.f 391 40 -20 * 100 65 67 123 18 -33 -1,010 1974—NOco tv - 1 6 3 5 5 1 4 0 -2 - 2 1 1 1 2 3 -1 6 -1 2 3 4 1 6 8 5 1 3 1 9 0 9 0 - 4 1 5 1 7 Dec -166 1 -4 1 64 66 -4 17 93 -337 1975—Ja n 140 2 6 59 94 14 151 1 -120 Feb -275 -4 3 -91 -87 16 35 1 -241 Mar.. . . 365 -1 10 23 32 4 341 -19 10 Apr -16 -26 35 -99 -100 5 80 1 -6 May -212 -1 7 -81 -72 7 81 -11 -6 June... . 164 8 5 32 58 4 65 -1 -218 July 384 16 6 35 80 183 33 179 4 -17 Aug -358 -3 -18 -6 -69 -73 6 -1 1 -292 Sept.r.. -107 6 25 -7 121 -19 -5 82 -7 -162 Oct.**... 306 -50 2 12 89 51 38 209 -4 -1 1 See note 1 to Table 15. NOTE.—Statistics include State and local govt, securities, and securities 2 See note 2 to Table 15. of U.S. Govt, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu- Canada Amer- Asia Af- coun- End of balances balances re- coun- rrooppee ica rica tries period (due to (due from gional tries foreigners) foreigners) 1973 -818 139 -957 -141 -569 -120 -168 3 37 1973—Mar 310 364 1974r --22,,005544 -60 --11,,999955 -546 --11,,552299 -93 144 7 22 June 316 243 Sept 290 255 1975— 333 231 Jan.-Oct.f -2,116 1,241 -3,357 -100 --22,,330022 -322 -544 18 -107 1974—Mar 383 225 1974—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 * 293 194 1975—Jan.r... -1,085 -572 -514 -41 -405 -28 -60 20 * 1975—Mar 349 209 Feb.r... -475 -147 -328 19 -159 -97 -94 2 * June*5 380 233 Mar.r.. -462 -106 -356 -66 -175 -3 -112 -2 1 SSeepptt^^ 258 343 Apr.r. . -160 -57 -103 -57 -6 17 -59 * 2 May r. . -185 31 -216 39 -168 * -88 -2 2 June r.. -655 * -655 -22 -478 * -30 2 -127 NOTE.—Data represent the money credit balances and July7"... -706 475 -231 -26 -116 -25 -69 * 4 money debit balances appearing on the books of reporting Aug.r.. -362 -21 -341 24 -204 -164 1 1 2 brokers and dealers in the United States, in accounts of Sept.p.. -94 6 -100 -19 -131 25 24 -1 1 foreigners with them, and in their accounts carried by Oct.P... 2,069 2,582 -514 48 -460 -48 -56 -3 6 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 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- forbank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies 1972—Dec.. 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 1973—Dec.. 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 1974—Sept.. 147,720 6,267 3,622 2,645 135,272 26,322 61,301 3,721 43,927 Oct.. 145,906 4,661 2,027 2,634 135,284 26,958 59,617 3,849 44,860 Nov.. 150,274 7,751 5,159 2,592 136,442 28,366 58,727 4,019 45,330 Dec.. 151,905 6,898 4,464 2,434 138,713 27,559 60,283 4,077 46,795 1975—Jan... . 151,140 7,029 4,360 2,669 138,143 27,894 58,863 4,152 47,234 Feb.... 151,662 5,486 2,882 2,604 140,345 28,969 58,794 4,246 48,335 Mar.... 155,204 5,326 2,638 2,688 143,750 28,330 61,611 4,407 49,402 Apr.... 155,616 5,831 3,052 2,779 143,949 29,195 60,292 4,353 50,109 May... 156,909 r7,726 4,889 2,837 143,101 27,581 60,330 4,494 50,697 Juner. . 162,342 5,538 2,342 3,196 150,516 30,870 63,710 4,836 51,101 July. . 160,703 5,91" 2,788 3,129 148,225 30,153 62,438 4,796 50,839 Aug... 165,483 8,748 5,696 3,052 150,197 31,283 62,455 4,892 51,567 Sept.2'. 166,075 6,572 3,267 3,305 153,171 31,510 65,006 4,861 51,793 Payable in U.S. dollars. 1972—Dec.. 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 1973—Dec.. 79,445 4,599 1,848 2,751 73,018 12,799 39,527 1,777 18,915 1974—Sept.. 104,345 5,990 3,564 2,426 95,304 19,413 46,517 2,873 26,501 Oct.. 101,977 4,379 1,970 2,409 94,650 19,785 44,832 3,006 27,027 Nov.. 105,066 7,445 5,105 2,340 94,581 20,623 43,741 3,192 27,026 Dec.. 105,969 6,602 4,428 2,174 96,210 19,688 45,067 3,289 28,166 1975—Jan 105,776 6,706 4,318 2,387 95,989 20,448 43,151 3,370 29,020 Feb 104,360 5,141 2,839 2,302 96,327 20,827 42,672 3,431 29,397 Mar 107,519 5,012 2,607 2,405 99,637 19,836 46,118 3,604 30,079 Apr 108,399 5,466 3,009 2,456 100,231 20,993 45,172 3,599 30,467 Mayr... 111,638 7,316 4,825 2,491 101,384 21,281 45,403 3,685 31,016 Juner... 117,296 5,112 2,280 2,832 109,181 24,529 49,132 3,949 31,571 July. . . 117,268 5,511 2,737 2,774 108,281 24,180 48,572 3,929 31,600 Aug 121,126 8,424 5,642 2,782 109,425 25,071 48,063 4,148 32,143 Sept.23,... 123,119 6,235 3,210 3,025 113,926 25,444 51,470 4,040 32,971 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 1973--Dec.. 61,732 1,789 738 1,051 57,761 8,773 34.442 735 13,811 1974—Sept.. 70,965 2,860 2,087 774 65,596 12,436 34,959 829 17,372 Oct.. 68,123 1,325 502 823 64,462 12,386 33,608 887 17,581 Nov.. 69,137 3,387 2,568 818 63,571 13,122 32,128 753 17,567 Dec.. 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 1975—Jan 68,451 2,633 1,902 731 63,527 12,873 32,057 854 17,743 Feb.. 67,038 1,818 1,023 796 63,250 13,246 31,641 848 17,515 Mar 69,654 1,798 982 817 65,693 12,806 34,260 929 17,699 Apr 69,248 2,017 1,126 891 65,330 13.314 33,079 919 18,018 May 68,707 2,535 1,689 845 64,269 12,491 32.443 920 18,415 June 70,751 1,834 641 1,192 66,868 13,765 34,634 948 17,522 July 70,382 1,904 807 1.097 66,277 14,414 33,431 923 17,509 Aug 72.455 3,795 2,698 1,097 66,428 15,213 32,998 948 17,268 Sept.P 72,120 2,042 1,076 967 67,923 15,249 34,759 825 17,091 Payable in U.S. dollars. 1972—Dec.. 30,257 2,146 1,131 1,015 27,664 4,326 17,331 543 5,464 1973—Dec.. 40,323 1,642 730 912 37,816 6,509 23,389 510 7,409 1974—Sept.. 50,075 2,774 2,067 708 45,960 10,305 25,044 676 9,937 Oct.. 47,968 1.235 479 756 45,421 10,234 24,499 734 9,954 Nov.. 48,710 3,277 2,546 730 44,198 10,796 22,936 615 9,852 Dec.. 49,211 3,146 2,468 678 44,693 10,265 23,716 610 10,102 1975—Jan 47,769 2,542 1,892 650 43,959 10,421 22,610 661 10,268 Feb.... 46,019 1,697 1,017 680 43,244 10,615 21,918 657 10,055 Mar..., 48,939 1,687 974 713 46,039 10,373 24,874 736 10,057 Apr 48,797 1,885 1,109 776 45,923 10,995 23,990 721 10,217 May... 48,506 2,404 1,671 733 45,180 10,656 23,320 698 10,506 June... 51,365 1,669 623 1,045 48,713 12,054 25,761 721 10,178 July... 51,665 1,742 793 949 48,787 12,664 25,143 713 10,267 Aug..., 53.456 3,661 2,681 980 48,763 13.315 24,540 740 10,168 Sept.33. 54,256 1,910 1,054 856 51,369 13,488 27,008 596 10,277 IN BAHAMAS AND CAYMANS1 Total, all currencies 1972--Dec.. 12,642 1,486 214 1,272 10,986 725 5,507 431 4,322 1973--Dec.. 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 1974—Sept... 30,080 2,315 750 1,564 26,910 2,770 11,515 1,728 10,896 Oct... 30,071 2,206 711 1,495 27,075 3,178 11,347 1,756 10,795 Nov... 32,313 3,299 1,816 1,484 28,130 3,829 11,371 1,993 10,937 Dec.,. 31,733 2,463 1,081 1,382 28,455 3,478 11,354 2,022 11,601 1975—Jan.... 33,131 3,223 1,594 1,629 29,070 3,644 11,194 2,027 12,206 Feb 33,534 2,563 1,072 1,491 30,137 3,855 11,474 2,060 12,748 Mar..., 33,793 2,405 839 1,567 30,671 3,568 11,634 2,393 13,077 Apr 35,666 2,587 1,006 1,581 32,359 4,320 12,229 2,419 13,392 May... 38,198 4,125 2,468 1,657 33,215 4,270 13,181 2,531 13,233 June ... 39,645 2,632 987 1,645 36,182 5,831 13,747 2,772 13,832 July.. 39,614 2,786 1,134 1,652 35,678 5,015 14,065 2,747 13,851 Aug— 41,272 3,763 2,228 1,535 36,556 5,222 14,117 2,891 14,326 Sept.f. 2 41 ,601 3,188 1,289 1,899 37,481 5,220 14,604 3,020 14,637 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 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- forbank 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. 147,720 9,981 5,058 4,923 131,016 26,337 66,071 17,488 21,121 6,723 , 1974—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 14,935 8,703 6,233 134,594 29,192 62,287 23,236 19,879 6,( Apr. 156,910 16,861 10,366 6,494 133,806 26,725 64,700 22,223 20,158 6,243 May 162,342 18,618 12,204 6,414 137,189 30,412 64.955 21 ,106 20,715 6,535 June 160,703 17,704 11,542 6,162 136,808 30,233 65.956 20,371 20,249 6,191 July 165,484 16,831 9,669 7,162 142,327 30,582 70,161 21,093 20,492 6,326 Aug. 166,075 18,880 10,780 8,100 140,998 30,334 70,627 19,744 20,293 6,197 Sept.* 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. 106,004 9,294 4,833 4,461 92,630 19,599 46,020 14,533 12,478 4,080 . 1974—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 14,277 8,517 5,760 92,715 20,683 40,999 19,909 11,123 3,414 Apr. 114,105 16,256 10,189 6,067 94,452 20,521 43,863 18,928 11,139 3,397 May 119,385 17,998 12,008 5,990 97,828 23,969 44,202 17,968 11,689 3,560 June 119,319 17,090 11,335 5,755 99,013 24,112 45,897 17,393 11,611 3,216 Julyr 123,553 16,186 9,488 6,698 103,987 24,435 49,418 18,080 12,055 3,381 Aug. 125,442 18,277 10,597 7,680 103,931 24,477 50,551 16,777 12,126 3,235 Sept.p IN UNITED KINGDOM 43,467 1,453 113 1,340 41,020 2,961 24,596 6,433 7,030 994 .1972—Dec. —Total, all currencies 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .1973—Dec. 70,965 3,503 635 2,867 64,919 5,428 33,766 13,544 12,181 2,543 .1974—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 70,382 4,679 1,718 2,961 63,501 6,475 30,636 15,312 11,077 2,203 July 72,457 5,251 1,904 3,348 65,012 6,260 32,097 15,617 11,038 2,194 Aug. 72,120 5,744 1,833 3,911 64,331 6,396 32,999 14,486 10,450 2,046 Sept.* 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. 50,212 3,177 605 2,572 45,550 3,667 22,818 11,035 8,030 1,486 ,1974—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 51,826 4,421 1 ,684 2,737 46,217 5,478 20,775 12,915 7,049 1 J July 54,017 4,975 1,873 3,103 47,912 5,288 22,087 13,249 7,287 1,129 Aug. 54,683 5,520 1,808 3,712 48,182 5,456 23,513 12,182 7,031 980 Sept. IN BAHAMAS AND CAYMANS i 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. 30,080 3,721 2,151 1,571 25,626 7,072 14,419 1,840 2,295 733 1974—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. 38,198 9,090 6,766 2,324 28,309 6,872 16,018 2,977 2,441 799 May 39,646 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 June 39,614 9,991 7,407 2,584 28,933 8,401 15,539 2,500 2,492 690 July' 41,272 8,448 5,363 3,085 31,913 9,128 17,317 2,860 2,607 911 Aug. 2 41,601 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 Sept. Digitized forF 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. • DECEMBER 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 EEnndd ooff UUnniitteedd period Deposits U se .S cu . r T it r i e e a s1 s . Ear g m o a ld rk ed ppeerriioodd TToottaall Deposits i S n t h e v o r e m r s t t - - Deposits i S n t h e v o r e m r s t t - - KK dd ii oo nn mm gg -- CCaannaaddaa ments 1 ments 1 1972. 325 50,934 215,530 1973. 251 52,070 217,068 1,507 1,078 127 234 68 580 443 1974. 418 55,600 16,838 1974—Nov.. 626 55,908 16,865 19722 / ( 1 2 , , 9 37 6 4 5 1 1 , , 4 9 4 1 6 0 1 5 6 5 9 3 3 4 0 0 7 4 6 2 8 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—Sept , 3,073 2,491 30 362 189 1,194 864 Feb.. 409 60,864 16,818 Oct 2,698 2,132 25 325 216 1,122 835 Mar.. 402 60,729 16,818 Nov 2,998 2,380 15 326 277 1,285 941 Apr.., 270 60,618 16,818 Dec.r 3,311 2,582 56 412 261 1,350 951 May. 310 61,539 16,818 June., 373 61,406 16,803 1975—Jan.''.... 3,275 2,521 50 359 345 1,145 1,117 July.. 369 60,999 16,803 Feb.'".... 3,376 2,515 52 403 406 1,088 1,136 Aug., 342 60,120 16,803 Mar.r 3,283 2,434 67 395 388 1,064 1,134 Sept.. 324 58,420 16,795 Apr 3,368 2,458 48 314 550 1,065 1,279 Oct.. 297 60,307 16,751 May 3,188 2,220 47 393 527 908 1,240 Nov.. 346 60,512 16,745 June 3,138 2,241 95 369 433 974 1,128 July 3,221 2,278 118 420 405 904 1,109 Aug.? 3,438 2,334 129 453 522 1,017 1,309 1 Marketable U.S. Treasury bills, certificates of in- Sept.f 3,602 2,522 125 456 499 1,104 1,252 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign cur 2 r e T n h c e i e v s. a lue of earmarked gold increased because of the or 1 h a N v e in g g o t a ia c b o le n t a r n a d c tu o a t l h e m r a r t e u a r d i i ty ly o t f r a n n o s t f e m ra o b re le t h f a o n r e 1 ig y n e a o r b l f i r g o a m ti o th n e s d pa a y te a b o l n e w on h ic d h e m th a e n d changes in par value of the U.S. dollar in May 1972, and obligation was incurred by the foreigner. in Oct. 1973. 2 Data on the 2 lines 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 NOTE.—Excludes deposits and U.S. Treasury securities date; figures on the second line are comparable with those shown for the following date. held for international and regional organizations. Earmarked gold is gold held for foreign and international NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in accounts and is not included in the gold stock of the the United States. They are a portion of the total claims on foreigners reported by United States. 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 2,704 2,229 475 5,185 4,535 318 333 2,763 2,301 463 5,000 4,467 289 244 2,844 2,407 437 5,173 4,557 317 300 2,925 2,452 472 5,326 4,€85 374 268 2,933 2,435 498 5,487 4,833 426 228 3,119 2,635 484 5,721 5,074 410 237 3,397 2,928 469 6,304 5,645 393 267 3,308 2,836 472 7,019 6,150 456 414 3,283 2,760 523 7,292 6,451 493 349 3,567 2,919 648 7,627 6,701 528 399 3,964 3,257 707 8,463 7,553 485 425 4,373 3,564 809 10,458 9,525 400 533 5,101 4,158 943 11,022 10,104 420 498 5,567 4,634 933 10,681 9,720 419 543 5,769 4,855 914 11,233 10,190 455 587 5,734 4,868 866 10,878 9,744 441 692 1 Data on the 2 lines shown for this date differ preceding date; figures on the second line are compabecause 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

DECEMBER 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 Juner Sept. ' Dec.r Mar.r June June1" Sept.r Dec.r Mar.r June Europe: 12 18 20 26 22 17 1155 2266 15 13 Belgium-Luxembourg 419 501 516 474 334 139 114 128 137 96 Denmark 18 22 24 23 14 27 25 42 35 22 Finland 9 12 16 16 12 80 91 120 77 87 France 170 157 202 151 138 509 461 430 328 287 Germany 211 240 313 350 466 343 326 339 276 346 Greece 28 28 39 25 27 76 69 65 59 69 Italy 121 129 125 109 110 393 413 397 309 300 Netherlands 104 120 117 121 141 126 144 148 157 135 Norway 8 10 9 9 8 35 32 36 35 41 17 20 19 13 13 101 69 81 42 32 Spain 42 46 56 54 59 409 414 369 359 324 52 40 38 32 30 106 97 89 66 74 Switzerland 112 106 140 157 170 78 154 136 86 113 Turkey 11 20 8 12 14 28 24 26 33 28 United Kingdom 1,239 1,408 1,222 1,110 1,006 1,865 1,763 1,853 1,642 1,534 Yugoslavia 18 17 40 52 45 23 23 22 33 32 Other Western Europe 6 7 5 5 4 23 20 21 23 16 Eastern Europe 34 80 70 54 49 97 90 142 114 154 Total 2,632 2,981 2,979 2,794 2,664 4,476 4,344 4,469 3,825 3,704 Canada 311 296 298 258 274 1,577 1,571 1,610 1,860 1,950 Latin America: Argentina 19 28 36 31 30 53 59 69 76 65 Bahamas 307 325 281 299 279 977 518 594 615 630 Brazil 125 160 118 121 127 523 419 461 376 349 Chile 10 14 22 23 15 64 124 106 69 57 Colombia 22 13 14 11 11 51 49 51 51 47 Cuba * * * * * 1 1 1 1 1 Mexico 76 64 63 72 74 263 287 297 325 307 Panama 19 21 28 18 27 84 114 132 110 128 Peru 11 15 14 18 16 60 40 44 46 50 Uruguay 2 2 2 3 3 5 6 5 15 5 Venezuela 43 53 49 39 44 172 190 190 180 166 Other L.A. republics 60 63 83 65 67 172 182 193 195 180 Neth. Antilles and Surinam 7 8 24 48 52 17 14 20 16 13 Other Latin America 59 50 81 114 144 157 169 147 196 159 Total 761 818 816 862 889 2,599 2,169 2,308 2,271 2,155 Asia: China, People's Republic of (China Mainland) 3399 23 17 8 6 3 8 17 19 32 China, Rep. of (Taiwan) 72 72 93 102 100 118 127 137 121 125 Hong Kong 19 18 19 19 30 68 64 63 83 85 India 13 10 7 10 21 31 37 37 32 39 Indonesia 22 38 60 63 87 67 81 85 110 142 Israel 39 40 50 62 62 37 53 44 46 60 Japan 374 352 348 327 274 1,029 1,158 1,218 1,307 1,224 Korea 45 66 75 47 43 124 123 201 165 178 Philippines 19 28 25 19 17 86 108 93 82 91 Thailand 7 10 10 9 6 22 23 24 30 25 Other Asia 404 431 536 645 845 314 311 387 398 469 Total 1,054 1,087 1,239 1,312 1,492 1,899 2,093 2,307 2,392 2,471 Africa: Egypt 12 6 3 5 34 13 16 15 24 15 South Africa 24 35 43 54 65 85 90 101 104 102 Zaire 15 17 18 17 9 17 13 24 18 17 Other Africa 156 114 129 142 215 199 205 234 242 227 Total 206 172 193 217 323 314 325 374 387 362 Other countries: Australia 51 57 56 60 37 117 134 116 97 101 All other 24 32 30 31 18 39 44 49 45 39 Total 74 89 86 91 55 157 178 165 141 141 International and regional 63 125 158 201 257 1 1 * 1 Grand total 5,101 5,567 5,769 5,734 5,954 11,022 10,681 11,233 10,878 10,784 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. • DECEMBER 1975 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area EEEnnnddd ooofff pppeeerrriiioooddd TTToootttaaalll llliiiaaabbbiiillliiitttiiieeesss TToottaall K U in n g it d e 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 c a Japan O A t s h i e a r Africa o A th l e l r 1971—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 Tk 1 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 1 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—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 T-V 1 J 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ '3,600 3,284 191 745 759 187 64 703 133 378 86 38 1973—Mar '3,777 3,421 156 802 775 165 63 796 123 393 105 45 June '3,779 3,472 180 805 782 146 65 825 124 390 108 48 Sept '3,993 3,632 216 822 800 147 73 832 134 449 108 51 Dec '3,878 '3,693 290 '761 854 145 79 824 122 450 115 53 1974—Mar '3,827 '3,814 '369 737 888 194 81 800 118 448 119 61 June '3,524 3,809 363 696 907 184 138 742 117 477 122 61 Sept '3,356 3,932 370 702 943 181 145 776 114 523 118 59 Dec '3,707 4,114 364 640 '977 187 143 1,018 107 505 121 54 1975—Mar 3,954 4,128 340 652 1,020 182 160 961 102 527 130 54 June? 4,072 4,073 299 631 1,029 181 154 939 98 536 138 68 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—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 3.38 1.93 2.90 1.51 6.00 Sept 8.37 7.74 10.43 10.36 9.40 6.50 6.91 3.38 4.25 2.60 .94 5.50 Oct 11.38 1111..4422 9.88 6.93 6.53 3.13 3.27 44..2222 44..3355 5.50 Nov 1111 ..2211 77..0000 66..7744 33..3366 55..5500 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 $38,232 million and $38,456 million, respectively, on Sept. 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

DECEMBER 1975 • CENTRAL BANK AND EXCHANGE RATES A 75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of October 31, 1975 Rate as of October 31, 1975 Country Country Per Month Per Month cent effective cent effective Argentina 18.0 Feb. 1972 Italy 6.0 Sept. 1975 Austria 6.0 Apr. 1975 Japan 6.5 Oct. 1975 Belgium 6.0 Aue. 1975 Mexico 4.5 June 1942 Brazil 18.0 Feb. 1972 Netherlands.... 4.5 Sept. 1975 Canada 9.0 Sept. 1975 Norway 5.0 Oct. 1975 Denmark 7.5 Aug. 1975 Sweden 6.0 Aug. 1975 France 8.0 Sept. 1975 Switzerland 3.0 Oct. 1975 Germany, Fed. Rep. of 3.5 Sept. 1975 United Kingdom 12.0 Oct. 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 borrowings 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*/i Argentina—3 and 5 per cent for certain rural and industrial paper, de- per cent for advances against government bonds, and 5 Vi per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; 27. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1971, 113.61 4.0009 2.0598 99.021 13.508 18.148 28.768 13.338 244.42 .16174 .28779 1972. 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973. 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1974—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 Sept 128.87 5.4029 2.5485 97.437 16.445 22.367 38.191 11.281 208.34 .14740 .33345 Oct 126.26 5.4586 2.5662 97.557 16.601 22.694 38.737 11.244 205.68 .14745 .33076 Nov 126.26 5.4535 2.5618 98.631 16.564 22.684 38.619 11.238 204.84 .14721 .33053 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-—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 Sept 38.219 8.0000 37.229 105.50 17.834 3.7048 131.40 1.6914 22.501 36.905 208.35 Oct 38.931 8.0000 37.658 104.74 18.089 3.7359 114.84 1.6883 22.769 37.555 205.68 Nov 38.929 8.0000 37.638 104.75 18.116 3.7318 114.69 1.6869 22.788 37.683 204.84 NOTE.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 BUSINESS FINANCE • DECEMBER 1975 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1973 1974 1975 Industry 1972 1973 1974 III III IV Total (170 corps.): Sales 371,946 442,254 563,950 109,967 108,370 120,985 126,797 142,974 144,936 149,243 138,245 145,753 Total revenue 376,604 448,795 572,368 111,526 109,984 123,108 128,695 145,125 147,134 151,409 140,343 147,648 Profits before taxes 41,164 53,833 67,650 14,009 12,411 14,742 16,588 18,191 17,837 15,033 12,873 14,818 Profits after taxes 21,753 28,772 32,502 7,491 6,762 7,750 7,739 9,280 8,420 7,068 5,538 6,685 Memo: PAT unadj. i... 21,233 28,804 32,705 7,385 6,732 7,930 7,626 9,210 8,487 7,383 5,662 6,566 Dividends 10,538 11,513 12,302 2,715 2,767 3,393 2,906 2,928 3,076 3,390 3,129 3,059 Nondurable goods industries (86 corps.):2 Sales 176,329 210,118 308,699 50,223 53,168 59,207 68,767 77,090 80,425 82,417 77,224 78,537 Total revenue 178,915 213,904 314,256 51,191 54,098 60,357 70,049 78,552 81,905 83,746 78,548 79,814 Profits before taxes 21,799 30,200 46,380 7,129 7,610 8,988 11,880 11,972 12,595 9,930 9,357 9,949 Profits after taxes 11,154 15,538 20,536 3,667 4,018 4,463 5,056 5,728 5,464 4,291 3,575 3,897 Memo: PAT unadj.1... 10,859 15,421 20,433 3,597 3,957 4,517 4,957 5,677 5,389 4,411 3,567 3,870 Dividends 5,780 6,103 6,872 1,462 1,527 1,633 1,625 1,645 1,722 1,882 1,816 1,811 Durable goods industries (84 corps.):3 Sales 195,618 232,136 255,251 59,744 55,202 61,778 58,029 65,884 64,511 66,826 61,021 67,216 Total revenue 197,690 234,891 258,112 60,335 55,886 62,751 58,646 66,573 65,229 67,663 61,795 67,834 Profits before taxes 19,365 23,633 21.271 6,880 4,801 5,754 4,708 6,219 5,242 5,102 3,516 4,869 Profits after taxes 10,599 13,234 11,966 3,824 2,744 3,287 2,683 3,552 2,956 2,776 1,963 2,788 Memo: PAT unadj.1... 10,374 13,383 12.272 3,788 2,775 3,413 2,669 3,533 3,098 2,973 2,095 2,696 Dividends 4,758 5,410 5,430 1,253 1,240 1,760 1,281 1,283 1,354 1,508 1,313 1,248 Selected industries: Food and kindred products (28 corps.): Sales 37,624 42,628 52,753 10,183 11,014 11,871 11,885 12,729 13,663 14,476 13,490 14,117 Total revenue 38,091 43,198 53,728 10,348 11,201 11,938 12,110 12,996 13,939 14,683 13,708 14,353 Profits before taxes 3,573 3,957 4,603 962 1,031 1,067 1,046 1,190 1 ,289 1,077 1,066 1,197 Profits after taxes 1,845 2,063 2,298 499 '546 543 529 607 645 517 502 614 Memo: PAT unadj. i... 1,805 2,074 2,328 501 r546 573 533 610 646 540 526 615 Dividends 893 935 1,010 230 236 240 243 248 253 267 268 271 Chemical and allied products (22 corps.): Sales 36,638 43,208 55,084 10,693 10,828 11,534 12,507 13,892 14,606 14,078 13,618 14,329 Total revenue 37,053 43,784 55,677 10,849 10,968 11,704 12,667 14,066 14,778 14,165 13,761 14,498 Profits before taxes 4,853 6,266 8,264 1,606 1,599 1,572 1,856 2,293 2,194 1,920 1,641 1,622 Profits after taxes 2,672 3,504 4,875 886 901 883 1,044 1,247 1,223 1,362 925 929 Memo: PAT unadj.i 2,671 3,469 4,745 884 871 880 1,031 1,245 1,180 1 ,289 927 937 Dividends 1,395 1,496 1,646 359 374 417 383 405 422 437 431 425 Petroleum refining (15 corps.): Sales 74,662 93,505 165,150 21,689 23,586 27,752 36,103 41,362 42,747 44,938 41,988 41,342 Total revenue 76,133 95,722 168,680 22,258 23,988 28,584 36,913 42,261 43,659 45,847 42,851 42,100 Profits before taxes 11,461 17,494 30,659 3,884 4,371 5,724 8,296 7,564 8,339 6,458 6,227 6,612 Profits after taxes 5,562 8,550 11,775 1j ,899 2,230 2,662 3,098 3,349 3,181 2,147 1,905 2,078 Memo: PAT unadj.i 5,325 8,505 11,747 2,192 2,688 3,011 3,304 3,132 2,299 1,871 2,040 Dividends 2,992 3,147 3,635 748 789 832 864 853 899 1,019 966 965 Primary metals and products (23 corps.): Sales 34,359 42,400 54,045 10,,78,4 10,602 11,379 11,1 13,976 14,285 13,895 12,482 12,393 Total revenue 34,797 43,104 55,049 10,891 10,764 11,715 12,045 14,171 14,504 14,328 12,782 12,597 Profits before taxes 1,969 3,221 5,580 885 799 919 973 1,586 1,791 1,229 1,015 711 Profits after taxes 1,195 1,966 3,199 542 480 561 589 927 1,028 655 631 478 Memo: PAT unadj.i 1,109 2,039 3,485 538 496 608 607 942 1,137 799 639 485 Dividends 653 789 965 178 184 227 221 209 238 297 273 227 Machinery (27 corps.): Sales 55,615 65,041 73,452 16,035 16,306 17,871 16,830 18,836 18,853 18,935 18,245 19,881 Total revenue 56,348 65,925 74,284 16,241 16,519 18,168 17,012 19,023 19,075 19,174 18,464 20,104 Profits before taxes.... 6,358 7,669 7,643 1,880 1,936 2,149 1,829 2,074 1,943 1,797 1,727 2,089 Profits after taxes 3,522 4,236 4,213 1,034 1.069 1,200 1,006 1,149 1,074 985 971 1,178 Memo: PAT unadj.1. 3,388 4,208 4,168 1,020 1.070 1,188 996 1 ,137 1,096 939 975 1,173 Dividends 1,497 1,606 1,839 401 407 410 441 441 r476 481 483 485 Motor vehicles and equipment (9 corps.): Sales 70,653 83,016 80,386 22,256 17,959 21,186 18,467 20,979 19,443 21,497 18,863 22,275 Total revenue 71,139 83,671 80,882 22,415 18,142 21,362 18,597 2.1,146 19,593 21,545 19,01 22,341 Profits before taxes 6,955 7,429 2,919 2,704 729 1,280 636 1,115 231 938 -98 853 Profits after taxes 3,626 3,992 1,686 1,446 431 709 369 657 133 527 -127 451 Memo: PAT unadj.i.. 3,640 4,078 1,742 1,436 450 763 361 648 147 586 -12 455 Dividends 1,762 2,063 1,538 473 404 817 384 382 386 385 294 276 1 Profits after taxes unadjusted are as reported by the individual com- of returns, allowances, and discounts, and exclude excise taxes paid dipanies. These data are not adjusted to eliminate differences in accounting rectly by the company. Total revenue data include, in addition to sales, treatments of special charges, credits, and other nonoperating items. income from nonmanufacturing operations and nonoperating income. 2 Includes 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

> 00 Board of Governors of the Federal Reserve System ARTHUR F. BURNS, Chairman GEORGE W. MITCHELL, Vice Chairman JEFFREY M. BUCHER ROBERT C. HOLLAND HENRY C. WALLICH 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 Chairman G J R O O O H D a B R N n E D i r d R O e M T N c P . t o r J. B o D r . g E L r N A G a K R W m I L R M E D E W R N i , r O C e M O E c , t D a o , n D r a A e g f p s o i s u n r i t g s y t an D M t i a re n D c a i t g r o e i r n c g to r J J K R A O O E Y S B B N E o E P N P a R A H E T r U T d R L H S . O B A C L R . O O E G Y M N U N N O E E E N N , M , T A A A H s N d E s , v R i s i , S s ta e A p n r e s t c s i i t s a o t t o l a t n A h th t e s e s t i B o s B t o t a o h a n a e r t r d d B t o o a t r h d e J A S M S . T T R U A E C B T R P H N o H R H a A L U A E r E R R Y N d Y L E L A H J S . . . L B P T S A R A M IG X O R A E I I T L N D L E R , N A E O , , , A D A s S M , s p s i a A s e s i n t c d s a a i t v a n a g i l t s n i n e t A r g t o s t s o t i D t o s h t t i e h a t r h e e n B e c t t B o o B a t o r o o r a d a r t r d h d e WIL C L o I n A t M in g W en . cy L AY P T la O n N n , i n D g irector of Equal FRA B N o K a rd O 'BRIEN, JR., Special Assistant to the NO t R o M t A h N e D B R o . a r V d . BERNARD, Special Assistant Employment Opportunity DONALD J. WINN, Special Assistant to the BRENTON C. LEAVITT, Program Director for Board Banking Structure PETER E. BARN A, Program Director for DIVISION OF RESEARCH AND STATISTICS Bank Holding Company Analysis LYLE E. GRAMLEY, Director JAMES L. KICHLINE, Associate Director JOSEPH S. ZEISEL, Associate Director EDWARD C. ETTIN, Adviser JOHN H. KALCHBRENNER, Adviser LEGAL DIVISION PETER M. KEIR, Adviser JAMES B. ECKERT, Associate Adviser DIVISION OF FEDERAL RESERVE BANK JOHN D. HAWKE, JR., General Counsel JOHN J. MINGO, Associate Adviser OPERATIONS BALDWIN B. TUTTLE, Assistant General ELEANOR J. STOCKWELL, Associate Adviser Counsel HELMUT F. WENDEL, Associate Adviser JAMES R. KUDLINSKI, Director CHARLES R. MCNEILL, Assistant to the JAMES R. WETZEL, Associate Adviser *E. MAURICE MCWHIRTER, Associate Director General Counsel ROBERT M. FISHER, Assistant Adviser WALTER A. ALTHAUSEN, Assistant Director ROBERT E. MANNION, Adviser J. CORTLAND G. PERET, Assistant Adviser BRIAN M. CAREY, Assistant Director ALLEN L. RAIKEN, Adviser STEPHEN P. TAYLOR, Assistant Adviser HARRY A. GUINTER, Assistant Director GARY M. WELSH, Adviser LEVON H. GARABEDIAN, Assistant Director 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 W T C P. H L IL Y O D L . D M I E A A R S M H I N . E G H F . , . A M R A W E N s A s A S i L s W D t L , a O A n A R C t T s E s H , i , D s t J a i D r R n e i . t r , c e t A o c D t r s o s i r i r s e t c a t n o t r Director J J F R E A R O R N E B B A D E o E T U E a R R L r T O D d IC . S C . a H S . n O P A d K L L R O L O T D , T U M i K C r D O I e K N N e c M , p , t o u A A A r t N y s s , s s i i s s D A t t a s a ir s n n e i t t s c t t a o t n D o r t ir th e D e c t i o r r e ctor * * H J R R R O O E E A H E L B L N D E E P N H R E J T . . C B I F . . R R . E V J B G Y U R IN E N N Y M E O Z A , , L M N D I T A A L S , d , L d v , v D A i i s s c i e A e r t r i e r d n c v g t i o s r e D r irector SAMUEL PIZER, Adviser DIVISION OF DATA PROCESSING GEORGE B. HENRY, Associate Adviser OFFICE OF THE SECRETARY CHARLES J. SIEGMAN, Associate Adviser CHARLES L. HAMPTON, Director EDWIN M. TRUMAN, Associate Adviser BRUCE M. BEARDSLEY, Associate Director THEODORE E. ALLISON, Secretary GLENN L. CUMMINS, Assistant Director GRIFFITH L. GARWOOD, Assistant Secretary WARREN N. MINAMI, Assistant Director TROBERT SMITH III, Assistant Secretary ROBERT J. ZEMEL, Assistant Director DIVISION OF BANKING SUPERVISION DIVISION OF PERSONNEL AND REGULATION KEITH D. ENGSTROM, Director BRENTON C. LEAVITT, Director CHARLES W. WOOD, Assistant Director FREDERICK R. DAHL, Assistant Director JACK M. EGERTSON, Assistant Director OFFICE OF THE CONTROLLER JOHN N. LYON, Assistant Director JOHN T. MCCLINTOCK, Assistant Director JOHN KAKALEC, Controller JOHN E. RYAN, Assistant Director TYLER E. WILLIAMS, JR., Assistant Controller THOMAS A. SIDMAN, Assistant Director WILLIAM W. WILES, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES WALTER W. KREIMANN, Director tOn loan from the Federal Reserve Bank of Dallas. DONALD E. ANDERSOJM, Assistant Director JOHN D. SMITH, Assistant Director *On leave of absence. > -J \D Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 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 ROBERT SOLOMON, Economist MURRAY ALTMANN, Deputy Secretary (International Finance) NORMAND R. V. BERNARD, Assistant EDWARD G. BOEHNE, Associate Economist Secretary *RALPH C. BRYANT, Associate Economist THOMAS J. O'CONNELL, General Counsel RICHARD G. DAVIS, Associate Economist EDWARD G. GUY, Deputy General Counsel RALPH T. GREEN, Associate Economist J. CHARLES PARTEE, Senior Economist JOHN KAREKEN, Associate Economist STEPHEN H. AXILROD, Economist JOHN E. REYNOLDS, Associate Economist (Domestic Finance) KARL O. SCHELD, Associate Economist LYLE E. GRAMLEY, Economist (Domestic Business) ALAN R. HOLMES, Manager, System Open Market Account PETER D. STERNLIGHT, Deputy Manager for Domestic Operations SCOTT E. PARDEE, Deputy Manager for Foreign Operations ^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 81 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Louis W. Cabot Frank E. Morris Robert M. Solow James A. Mcintosh NEW YORK* 10045 Roswell L. Gilpatric Paul A. Volcker Frank R. Milliken Richard A. Debs Buffalo ..14240 Donald Nesbitt Ronald B. Gray PHILADELPHIA 19105 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes CLEVELAND* 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati 45201 Phillip R. Shriver Robert E. Showalter Pittsburgh 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND* 23261 Robert W. Lawson, Jr. Robert P. Black E. Craig Wall, Sr. George C. Rankin Baltimore 21203 James G. Harlow Jimmie R. Monhollon Charlotte 28230 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 John D. Johnson KANSAS CITY 64198 Robert T. Person George H. Clay Harold W. Andersen John T. Boy sen Denver 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City 73125 James G. Harlow, Jr. William G. Evans Omaha 68102 Durward B. Varner Robert D. Hamilton DALLAS 75222 John Lawrence Ernest T. Baughman Charles T. Beaird T. W. Plant El Paso 79999 Herbert M. Schwartz Fredric W. Reed Houston 77001 Thomas J. Barlow James L. Cauthen San Antonio 78295 Pete J. Morales, Jr. Carl H. Moore SAN FRANCISCO .. ..94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi John B. Williams Los Angeles 90051 Joseph R. Vaughan Richard C. Dunn Portland 97208 Loran L. Stewart Angelo S. Carella Salt Lake City 84110 Sam Bennion A. Grant Holman Seattle ..98124 Malcolm T. Stamper James J. Curran * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 Federal Reserve Board Publications Available from Publications Services, Division of Ad- request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed- of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 FUNCTIONS. 1974. 125pp. $1.00each; lOormore each; 10 or more to one address, $.85 each. to one address, $.75 each. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 each; 10 or more to one address, $.85 each. ANNUAL REPORT INDUSTRIAL PRODUCTION—1971 EDITION. 1972. 383 FEDERAL RESERVE BULLETIN. Monthly. $20.00 per pp. $4.00 each; 10 or more to one address, $3.50 year or $2.00 each in the United States, its posses- each. sions, Canada, and Mexico; 10 or more of same THE PERFORMANCE OF BANK HOLDING COMPANIES. issue to one address, $18.00 per year or $1.75 1967. 29 pp. $.25 each; 10 or more to one address, each. Elsewhere, $24.00 per year or $2.50 each. $.20 each. FEDERAL RESERVE CHART BOOK ON FINANCIAL AND BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. BUSINESS STATISTICS. Monthly. Subscription in- 102 pp. $1.00 each; 10 or more to one address, cludes one issue of Historical Chart Book. $12.00 $.85 each. per year or $1.25 each in the United States, its SURVEY OF FINANCIAL CHARACTERISTICS OF CONpossessions, Canada, and Mexico; 10 or more of SUMERS. 1966. 166 pp. $1.00 each; 10 or more same issue to one address, $1.00 each. Elsewhere, to one address, $.85 each. $15.00 per year or $1.50 each. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 HISTORICAL CHART BOOK. Issued annually in Sept. pp. $1.00 each; 10 or more to one address, $.85 Subscription to monthly chart book includes one each. issue. $1.25 each in the United States, its posses- REPORT OF THE JOINT TREASURY-FEDERAL RESERVE sions, Canada, and Mexico; 10 or more to one STUDY OF THE U.S. GOVERNMENT SECURITIES address, $1.00 each. Elsewhere, $1.50 each. MARKET. 1969. 48 pp. $.25 each; 10 or more to one address, $.20 each. CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per year or $.40 each in the United States, its posses- JOINT TREASURY-FEDERAL RESERVE STUDY OF THE sions, Canada, and Mexico; 10 or more of same GOVERNMENT SECURITIES MARKET: STAFF STUDissue to one address, $13.50 per year or $.35 each. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more Elsewhere, $20.00 per year or $.50 each. to one address, $.40 each. PART 2. 1971. 153 pp. and PART 3. 1973. 131 pp. Each volume $1.00; SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF CHARTS. Weekly. $15.00 per year or 10 or more to one address, $.85 each. $.40 each in the United States, its possessions, OPEN MARKET POLICIES AND OPERATING PROCE- Canada, and Mexico; 10 or more of same issue DURES—STAFF STUDIES. 1971. 218 pp. $2.00 to one address, $13.50 per year or $.35 each. each; 10 or more to one address, $1.75 each. Elsewhere, $20.00 per year or $.50 each. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT THE FEDERAL RESERVE ACT, as amended through De- MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. cember 1971, with an appendix containing provi- 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; sions of certain other statutes affecting the Federal 10 or more to one address, $2.50 each. Reserve System. 252 pp. $1.25. THE ECONOMETRICS OF PRICE DETERMINATION CON- FERENCE, October 30-31, 1970, Washington, D.C. REGULATIONS OF THE BOARD OF GOVERNORS OF THE Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or FEDERAL RESERVE SYSTEM more to one address, $4.50 each. Paper ed. $4.00 PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- ERNORS, as of June 30, 1975. $2.50. each; 10 or more to one address, $3.60 each. SUPPLEMENT TO BANKING AND MONETARY STATISTICS. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE Sec. 1. Banks and the Monetary System. 1962. FLUCTUATIONS IN HOUSING CONSTRUCTION, Dec. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 1972. 487 pp. $4.00 each; 10 or more to one pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. address, $3.60 each. Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. LENDING FUNCTIONS OF THE FEDERAL RESERVE 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. BANKS. 1973. 271 pp. $3.50 each; 10 or more 10. Member Bank Reserves and Related Items. to one address, $3.00 each. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 INTRODUCTION TO FLOW OF FUNDS. 1975. 64 pp. $.50 pp. $.35. Sec. 12. Money Rates and Securities each; 10 or more to one address, $.40 each. Markets. 1966. 182 pp. $.65. Sec. 14, Gold. 1962. IMPROVED FUND AVAILABILITY AT RURAL BANKS (Re- 24 pp. $.35. Sec. 15. International Finance. 1962. port and study papers of the Committee on Rural 92 pp. $.65. Sec. 16 (New). Consumer Credit. Banking Problems). June 1975. 133 pp. $1.00; 10 1965. 103 pp. $.65. or more to one address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 83 STAFF ECONOMIC STUDIES RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. Studies and papers on economic and financial subjects REVISION OF CONSUMER CREDIT STATISTICS. 10/72. that are of general interest in the field of economic ONE-BANK HOLDING COMPANIES BEFORE THE 1970 research. AMENDMENTS. 12/72. YIELDS ON RECENTLY OFFERED CORPORATE BONDS. SUMMARIES ONLY PRINTED IN THE BULLETIN 5/73. (Limited supply of mimeographed copies of full CAPACITY UTILIZATION IN MAJOR MATERIALS INDUStext available upon request for single copies) TRIES. 8/73. 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. TIONS. 10/73. 27 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. REPRINTS NUMERICAL SPECIFICATIONS OF FINANCIAL VARIABLES (Except for Staff Papers, Staff Economic Studies, and AND THEIR ROLE IN MONETARY POLICY. 5/74. some leading articles, most of the articles reprinted do INFLATION AND STAGNATION IN MAJOR FOREIGN INnot exceed 12 pages.) DUSTRIAL COUNTRIES. 10/74. 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. January-April 1975. 10/75. GREGATES SINCE 1964. 6/71. RECENT DEVELOPMENTS IN INTERNATIONAL FINANCIAL REVISED MEASURES OF MANUFACTURING CAPACITY MARKETS. 10/75. UTILIZATION. 10/71. MINNIE: A SMALL VERSION OF THE REVISION OF BANK CREDIT SERIES. 12/71. MIT-PENN-SSRC ECONOMETRIC MODEL, Staff ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF Economic Study by Douglas Battenberg, Jared J. U.S. BANKS. 2/72. Enzler and Arthur M. Havenner. 11/75. BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— REVISED SERIES. 7/72. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE OR PERIOD APPROXIMATE TO WHICH DATA WEEKLY RELEASES RELEASE DAY REFER Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on and All Other Actions Friday Week ended previous of the Board (H.2) Saturday Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • December 1975 » WEEKLY RELEASES (cont.) APPROXIMATE DATE OR PERIOD TO RELEASE DAY WHICH DATA REFER Assets and Liabilities of All Commercial Banks in the United Wednesday, 2 weeks States (H.8) Wednesday earlier Week ended previous Changes in State Member Banks (K.3) Tuesday Saturday Wednesday, 1 week Commercial and Industrial Loans Outstanding by Industry (H.12)2 Wednesday earlier Week ended 3 Wed- Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday nesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Week ended previous Reserve Banks (H.4.1) Thursday Wednesday Week ended previous Foreign Exchange Rates (H.10) Monday Friday Week ended Wednes- Money Stock Measures (H.6) Thursday day of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednesday of previous week U.S. Government Security Yields and Prices (H.15) Monday Week ended previous Saturday Weekly Condition Report of Large Commercial Banks in New Thursday Previous Wednesday York and Chicago (H.4.3) Weekly Condition Report of Large Commercial Banks and Do- Wednesday Wednesday, 1 week mestic Subsidiaries (H.4.2)3 earlier Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week SEMIANNUALLY AND BIMONTHLY RELEASES Finance Rates and Other Terms on Selected Categories of Consumer 20th of month 2nd month previous Instalment Credit Extended by Finance Companies (J.3) Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last reof month lease MONTHLY RELEASES Assets and Liabilities of All Member Banks by Districts (G.7.1) 14th of month Last Wednesday of previous month Automobile Loans by Major Finance Companies (G.25) 7th working day 2nd month previous of month Automobile Instalment Credit Developments (G.26) 6th working day 2nd month previous of month Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Consumer Credit (G.19) 3rd working 2nd month previous day of month Consumer Instalment Credit at Commercial Banks (G.18) 4th working 2nd month previous day of month Federal Reserve System Memorandum on Exchange Charges (K. 14) 5th of month Period since last release 2On second Wednesday of month, contains monthly data release. 3Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 85 MONTHLY RELEASES (cont.) APPROXIMATE DATE OR PERIOD TO RELEASE DAY WHICH DATA REFER Finance Companies (G.20) 5th working 2nd month previous day of month Finance Rate and Other Terms on New and Used Car Instalment 30th of month Previous month Credit Contracts Purchased from Dealers by Major Auto Finance Companies (G.ll) Foreign Exchange Rates (G.5) 1st of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15th of month Previous month Interdistrict Settlement Account (G.15) 15th of month Previous month Interest Rates Charged on Selected Types of Bank Loans (G.10) 15th of month 2nd month previous Loan Commitments at Selected Large Commercial Banks (G.21) 20th of month 2nd month previous Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposit (G.9) previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month Summary of Equity Security Transactions (G.16) Last week of Release date month U.S. Government Security Yields and Prices (G.14) 4th of month Previous month QUARTERLY RELEASES Bank Rates on Short Term Business Loans (E..2) 18th of 1st 15 days of Febru- March, June, ary, May, August, September, November December Capacity Utilization in Manufacturing (E.5) 21st of Jan- Previous quarter uary, April, July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of Febru- Previous quarter ary, May, Volume and Composition of Individuals' Saving August, and (Flow of funds series) (E.8) November Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of March, 2nd quarter previous rations (E.6) July, September, December SEMIANNUAL RELEASES Assets and Liabilities of All Commercial Banks, by Class of Bank May and No- End of previous De- (E.3.4) vember cember and June Check Collection Services—Federal Reserve System (E.9) February Previous six and July months List of OTC Margin Stocks (E.7) June 30, De- Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No- End of previous De- Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) ANNUAL RELEASES Bank Debits and Demand Deposits (C.5 and C.5a) March 25 Previous Year Member Bank Income (C.4) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1st quarter of End of previous year Banks that Maintain Clearing Accounts with Federal Reserve year Banks (G.4) (Supplements issued monthly) 15th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • December 1975 » Index to Statistical Tables References are to pages A-2 through A-76 although the prefix "A" is omitted in this index (For list of tables published periodically, but not monthly, see p. 98) 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, 76 Branch banks: Assets, foreign branches of U.S. banks, 70 EMPLOYMENT, 50, 52 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 22, 71 Brokerage balances, 69 FARM mortgage loans, 42 Business expenditures on new plant and equipment, 41 Federal agency obligations, 9, 10, 11 Business indexes, 50 Federal finance: Business loans (See Commercial and industrial loans) Receipts and outlays, 32, 33 Treasury operating balance, 32 CAPACITY utilization, 50 Federal funds, 5, 16, 18, 21, 27 Capital accounts: Federal home loan banks, 37, 38 Banks, by classes, 14, 17, 22 Federal Home Loan Mortgage Corporation, 37, 42, 43 Federal Reserve Banks, 10 Federal Housing Administration, 42, 43, 44 Central banks, 60, 75 Federal intermediate credit banks, 37, 38 Certificates of deposit, 22 Federal land banks, 37, 38, 42 Commercial and industrial loans: Federal National Mortgage Assn., 37, 38, 42, 43, 44 Commercial banks, 13, 16 Federal Reserve Banks: Weekly reporting banks, 18, 23 Condition statement, 10 Commercial banks: U.S. Govt, securities held, 2, 10, 11, 34, 35 Assets and liabilities, 13, 14, 16, 17, 18 Federal Reserve credit, 2, 4, 10, 11 Consumer loans held, by type, 45 Federal Reserve notes, 10 Deposits at, for payment of personal loans, 24 Federally sponsored credit agencies, 37, 38 Loans sold outright, 25 Finance companies: Number, by classes, 14 Loans, 18, 46, 47 Real estate mortgages held, by type of holder and Paper, 25, 27 property, 42^44 Financial institutions, loans to, 16, 18 Commercial paper, 23, 25, 27 Float, 2 Condition statements (See Assets and liabilities) Flow of funds, 56, 57 Construction, 50, 51 Foreign: Consumer credit: Currency operations, 10 Instalment credit, 45, 46, 47 Deposits in U.S. banks, 3, 10, 17, 21, 72 Noninstalment credit, 45 Exchange rates, 75 Consumer price indexes, 50, 53 Trade, 59 Consumption expenditures, 54, 55 Foreigners: Corporations: Claims on, 66, 67, 68, 72, 73, 74 Profits, taxes, and dividends, 41 Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 Sales, revenue, profits, and dividends of large manufacturing corporations, 76 GOLD: Security issues, 39, 40 Certificates, 10 Security yields and prices, 28, 29 Reserves of central banks and govts., 60 Cost of living (See Consumer price indexes) Currency and coin, 3, 16 Stock, 2, 59 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 DEBITS to deposit accounts, 11 HOUSING permits, 50 Debt (See specific types of debt or securities) Housing starts, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 87 References are to pages A-2 through A-76 although the prefix "A" Is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 44 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property Insured commercial banks, 14, 16, 17, 24 mortgaged, 42-^44 Interbank deposits, 14, 20 Reserve position, basic, member banks, 5 Interest rates: Reserve requirements, member banks, 7 Bond and stock yields, 28 Reserves: Business loans of banks, 26 Central banks and govts., 60 Federal Reserve Banks, 6 Commercial banks, 17, 20, 22 Foreign countries, 74, 75 Federal Reserve Banks, 10 Money market rates, 27 Member banks, 3, 4, 13, 17 Mortgage yields, 43, 44 U.S. reserve assets, 59 Prime rate, commercial banks, 26 Residential mortgage loans, 43, 44 Time and savings deposits, maximum rates, 8 Retail credit, 45, 46, 47 International capital transactions of U.S., 61-74 Retail sales, 50 International institutions, 60-64, 66, 67-69, 73 Inventories, 54 SALES, revenue, profits, and dividends of large manu- Investment companies, issues and assets, 40 facturing corporations, 76 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): Federally sponsored agencies, 37, 38 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 38, 39, 40 Loans (See also specific types of loans): Yields and prices, 28, 29 Banks, by classes, 14, 16, 18, 30 Special Drawing Rights, 2, 10, 58, 59 Commercial banks, 13, 14, 16, 18, 23, 25, 26 State and local govts.: Federal Reserve Banks, 2, 4, 6, 10, 11 Deposits, 17, 20 Insurance companies, 31, 44 Holdings of U.S. Govt, securities, 34, 35 Insured or guaranteed by U.S., 42, 43, 44 New security issues, 38, 39 Savings and loan assns., 31 Ownership of securities of, 16, 19, 30 Yields and prices of securities, 28, 29 MANUFACTURERS: State member banks, 15, 24 Capacity utilization, 50 Stock market credit, 29, 30 Production index, 49, 50 Stocks (See also Securities): Margin requirements, 8 New issues, 39, 40 Member banks: Yields and prices, 28, 29 Assets and liabilities, by classes, 14, 16, 17 Borrowings at Federal Reserve Banks, 4, 10 TAX receipts, Federal, 33 Number, by classes, 14 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 r 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 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, 76 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • December 1975 » Index to Volume 61 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A" pages) Other ("A" pages) Text Text etc. Index to etc. Index to Issue total Total tables Issue total Total tables January 1- 54 1- 87 86- 87 July 393-462 1- 86 84-85 February 55-120 1- 95 94- 95 August 463-538 1- 86 84-85 March 121-186 1- 91 90- 91 September 539-604 1- 92 90-91 April 187-262 1- 94 92- 93 October ... 605-710 1- 84 82-83 May 263-340 1- 84 82- 83 November. 711-828 1- 84 82-83 June 341-392 1-106 104-105 December. 829-916 1- 98 86-87 (References to "A" pages in this index are to such pages in the December issue.) Pages AGRICULTURE: Bank holding companies—Continued Grain sales to Soviet Union, statement 574 Regulation Y: Improved Fund Availability at Rural Banks .. 390 Amendment 880,911 Annual Report, 1974, Board of Governors 459 Interpretations 245,588,671 Articles: Proposal to consider automobile leasing , as Bank lending policies, surveys of bank responses continued permissible activity 818 to Federal Advisory Council statement ..129, 405 Staff economic studies 472 Bank lending practices in 1974, survey 221 Bank Holding Company Act: Consumer lending at commercial banks 263 Orders issued under: Corporate finance, recent developments 463 Alabama Bancorporation 180, 672, 820 Economy in 1974 1 Alfalfa County Bancshares, Inc 596 Federal budget policy, recent trends 393 Allied Bancshares, Inc 48, 50, 531 Financial developments, quarterly reports to Congress Ameribanc, Inc 38, 48, 180, 458, (See Statements to Congress) 595, 598 Housing construction and residential mortgage American Bancorporation, Inc 177 markets 711 American Bancshares, Inc 258 International financial markets, developments. 605 American Bancshares, Incorporated 453 Loan commitments at selected large commercial American Bankcorp, Inc 257 banks, new statistical series 226 American Corporation 332 Margin credit, structure 209 Ames National Corporation 457 Member bank income in 1974 349 Archer-Daniels-Midland Company and Na- Monetary policy in a changing financial environ- tional City Bancorporation 107 ment, report on open market operations 197 Associated Bank Corporation 180 Nonbank thrift institutions in 1974 55 BBHC, Ltd 116 Time and savings deposits, surveys 13, 356, B.O.C. Corporation 258 546, 618 Bancorporation of Montana 820 Treasury and Federal Reserve foreign exchange Bank of New York Company, Inc 884 operations, reports 131, 364, 553 Bank of Nova Scotia, Toronto, Ontario, U.S. international transactions in 1974 187 Canada 309 Assets and liabilities, foreign branches, member Bank of Tokyo, Ltd., Tokyo, Japan 449 banks 823 Bank of Virginia Company 456 Bank America Corporation 258 BACHMAN, Craig, Class A director, Kansas City, Banks of Iowa, Inc 703 election 98 Bankshares of Florida, Inc 333 Bailey, Ronald W., director, Little Rock Branch, Bankshares of Indiana, Inc 40 appointment 96 Barnett Banks, Inc 678 Bain, Ralph C., Class B director, St. Louis, elec- Barnett Banks of Florida, Inc 257, 686 tion 96 Beatrice National Corporation 376 Bank holding companies (For orders issued to individual Boulevard Bancshares, Inc 596 companies under the Bank Holding Company Act, Broward Bancshares, Inc 117 see Bank Holding Company Act): Burlingame Bankshares, Inc 259 Delegation by Board of certain authority regard- Butte State Company 533 ing, amendment of rules 29 Canton Bancorporation, Inc 34 Disclosure of data for investor analysis, state- Capital City Bancshares, Inc 258 ment 416 Central Bancorporation, Inc 48, 531 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 61 A 89 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Orders issued under—Cont. Central Bancshares of the South, Inc 520 First National Agency, Inc 900 Central National Corporation 907 First National Bancorporation, Inc 331 Central Texas Financial Corporation 50 First National Bankshares of Florida, Inc. . 388 Chase County Corporation 702 First National Charter Corporation 333, 820 Chase Manhattan Corporation 686 First National Cincinnati Corporation 703 Chemical Financial Corporation 598 First National Corporation of Oak Brook .. 332 Chemical New York Corporation 447 First National Insurance Agency, Chetopa State Bancshares, Inc 259 Incorporated 456 Citibanc Group, Inc 379 First Ogden Corporation 172 Citicorp 896 First Security Corporation, Salt Lake City, Citizens and Southern Corporation 321 Utah 325, 522 Citizens Bancorp 806 First Security Corporation, Sutherland, Neb. 589 Citizens Bancorporation 805 First Security Corporation of Kentucky 590 Citizens State Bancorp, Inc 531 First State Banking Corporation 888 CleveTrust Corporation 533, 810 First Tennessee National Corporation ...251, 258 Clinton Bancshares, Inc 387 First Union, Incorporated 597 Clyde Bancorporation, Inc 455 First Union Corporation 388 Colonial Bancorp, Inc 174 First United Bancorporation, Inc 181, 889 Commercial Bankshares, Inc 807 Firstbank Holding Company 104 Commercial State Agency, Inc 599 First-Wichita Bancshares, Inc 598 Community Bancorporation 886 Florida Bankshares, Inc 117 Community Insurance Agency, Inc 588 Forest Park National Corporation 517 Coronado, Inc 116 Frontier Bancorporation of Denver, Inc. ... 257 Country Agencies & Investments, Inc. 333, 458 Full Service Insurance Agency, Inc 458 Crocker National Corporation and Bradford Gamble-Skogmo, Inc 253 Computer & Systems, Inc 49 General Bancshares Corporation 314 Cross Timbers Bancshares, Inc 441 Goose River Holding Company 310 Cullen Bankers, Inc 257 Gracemont Bankcorporation, Inc 115 D. H. Baldwin Company 181,597 Greater Metro Bank Holding Company 48 Darien Bancorporation, Inc 258 Greene Bancorporation 182 Deposit Guaranty Corp 49 Hanston Insurance Agency, Inc 596 DETROITBANK Corporation 313,443 Harlan National Company 817 Dexter Banking Company 103 Hawkeye Bancorporation 331 Dominion Bankshares Corporation 50 Helmerich & Payne, Inc 257 Downs Bancshares, Inc 673 Home wood Bancorporation, Inc 332 Edwardsville Bank-Shares, Inc 182 I&B, Inc 48 Equitable Bancorporation 115 Industrial Bancshares, Inc 675 Erie Bankshares, Inc 246 Intermountain Bankshares Company 442 Essex Bancorp, Inc 108 International Bancshares, Inc 376 F&M Bancorporation 332 International Brotherhood of Boilermakers, F.N.B. Corporation 116 Iron Ship Builders, Blacksmiths, Forgers FOB, Corp 531 and Helpers 811 Farmers Enterprises, Inc 48, 49 Kansas State Bancshares, Inc 532 Farmers State Corporation 451 KAYCO Investment Corporation 115 Fidelcor, Inc 323 Klein Bancorporation, Inc 457 Fidelity American Bankshares, Inc 181 LaCrosse Insurance, Inc 116 First Alabama Bancshares, Inc., Birmingham, Landmands Corporation 532 Ala 387 Manufacturers Hanover Corporation 42 First Alabama Bancshares, Inc., Montgomery, Manufacturers National Corporation 532 Ala 258 Marine Midland Banks, Inc 890 First Amtenn Corporation 810 Marshall & Ilsley Corporation 444 First Arkansas Bankstock Corporation 324 Mellon National Corporation 45, 526, 906 First Banc Group, Inc 533, 692 Memphis Trust Company 327 First Bancgroup-Alabama, Inc 319 Mercantile Bancorporation, Inc 182, 257, First Buffalo Holding Company 882 259, 457, 895 First City Bancorporation of Texas, Mercantile National Corporation 531 Inc 181, 591 Merchants National Corporation 49 First Commercial Banks, Inc 259, 331 Miami Agency, Inc. 907 First Community Bancorporation 117, 388, Michigan National Corporation ...380, 381, 592 599, 908 Midlantic Banks Inc 329 First Financial Corporation 820 Midwest Bancshares, Inc 311 First Financial Group of New Hampshire, Mille Lacs Bancshares, Inc 455 Inc 333 Mingo Insurance Agency 116 First Hawaiian, Inc 456, 524 MorAmerica Financial Corporation 258 First International Bancshares, Mountain Banks, Ltd 531 Inc 115, 257, 532 NBC Corporation 106 First Macomb Corporation 48 NCNB Corporation 330 First Manistique Corporation 598 National City Corporation 181, 594, 702 First Mississippi National Corporation 48 National Detroit Corporation 596 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • December 1975 » Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued under—Cont. Orders issued under—Cont. New England Merchants Company, Inc. ... 257 Winters National Corporation 533 New Mexico Bancorporation, Inc 907 Woodbine Bancorp, Inc 182 North Florida Bancshares, Inc 530 Worcester Bancorp, Inc 115, 597 Northwestern Financial Corporation 258 Wyoming Bancorporation 37, 181 Old Kent Financial Corporation 247, 813 York State Company 312 One Corporation 671 Bank Merger Act: Osborne Investments, Inc 597 Orders issued under: Oskaloosa Bancshares, Inc 48, 49 Annawan Investment Company, Annawan, PBC Financial Corporation 116 111 909 Padgett Agency, Inc 458 Bank of Buffalo, Buffalo, N.Y 885 Pan American Bancshares, Inc 385, 693 Bank of New York, New York, N.Y 885 PanNational Group Inc 257 Brownsville Commerce Bank, Brownsville, Park Capital Corp 907 Tex 49 Patagonia Corporation 530 Chemical Bank, New York, N.Y 114, 820 Pentagon Bankshares, Inc 35 First Banc Group of Ohio, Inc., Columbus, Peoples Bancorporation 36, 457 Ohio 908 Peoples BancShares, Inc 702 Iowa State Bank and Trust Company, Fair- Peoples Banking Corporation 458 field, Iowa 255 Peoples State Holding Company 388 Louisville Trust Company, Louisville, Ky. .116 Pfister, Inc 387 Manufacturers and Traders Trust Company, Popular Bancshares Corporation 596 Buffalo, N.Y 908 Profile Bankshares, Inc 901 Security BancShares of Montana, Inc., Har- Republic of Texas Corporation 249 din, Mont 908 Roseland State Company 48, 49 United Jersey Bank/Northwest, Dover, N.J. 456 SWB Corporation 883 Bank regulation and supervision, statements 419, SYB Corporation 378 486, 851 Scribner Banshares, Inc 518 Bassett, Harry Hood, director, Miami Branch, ap- Security Bankshares, Inc 50 pointment 460 Sooner Bancshares, Inc 457 Beardsley, Bruce M., Associate Director, Division South Carolina National Corporation 50 of Data Processing, appointment 336 Southeast Banking Corporation 903 Bernard, Normand R. V., Special Assistant to the Southeastern Bancshares, Inc 808 Board, Office of Managing Director for Research Southern Bancorporation, Inc 456 and Economic Policy, appointment 261 Southern Bancorporation of Alabama 598 Bianco, Joseph, director, Salt Lake City Branch, Southern Illinois Bancorporation, Inc 703 resignation 709 Southwest National Corporation 115 Blach, Harold B., Jr., director, Birmingham Spring view Bancorporation 907 Branch, appointment 94 Stanley Bancshares, Inc 908 Blount, Joe D., director, Cincinnati Branch, ap- Stapleton Investment Co. 259 pointment 91 Stockton Bancorp, Inc 820 Board of Governors (See also Federal Reserve System): Stuarco Oil Company, Inc 178 Annual Report, 1974 459 Sun Banks of Florida, Inc 182, 257 Bank security, letter 390 T.N.B. Financial Corp 331 Emergency Housing Act, letter 535 Tennessee Valley Bancorp, Inc 176 Foreign boycott practices, letter 913 Texarkana National Bancshares, Inc 703 Housing discrimination, possible, pilot survey 336 Texas American Bancshares, Inc 49 Interpretations (See Interpretations) Texas Commerce Bancshares, Inc 48, 109, Legislation, proposed 183 523, 532, 597 Litigation, pending cases 704, 821,909 Third National Corporation 815 Members: Tipton Insurance Agency, Inc 332 Bucher, Jeffrey M., resignation 911 Topeka Bank Shares, Inc 181 Jackson, Philip C., Jr., appointment 459 Union Bond & Mortgage Company 112 List, 1913-75 407 Union Commerce Corporation 115 Mitchell, George W., member of National Union Trust Bancorp 49 Commission on Electronic Fund Transfers 708 United Banks of Colorado, Inc. 315, 316, Sheehan, John E., resignation 335 331, 382, 446 Statements to Congress (See Statements to United Jersey Banks 703 Congress) United Kentucky, Inc 116 Members and officers A-78 United Michigan Corporation 181 Publications (See Publications in 1975) United Missouri Bancshares, Inc 318 Publications Committee, establishment 389 Valley View Bancshares, Inc 676 Regulations and rules (See Regulations and rules) Vici Bancorporation 387 Reorganization of Division of Federal Reserve Victoria Bankshares, Inc 182, 456 Bank Operations and creation of new Division Wachovia Corporation 49 of Federal Reserve Bank Examinations and Walter E. Heller International Budgets 603 Corporation 258 Staff changes: West Point First National Co 388 Beardsley, Bruce M 336 Westgate Bancshares, Inc 387 Bernard, Normand R. V 261 Westland Banks, Inc 384, 387 Brenneman, Jay Paul 336 Winner Banshares, Inc 519 Burke, Ronald G 603 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 61 A 91 Pages Pages Board of Governors—Continued Budget, Federal, article on recent trends in policy 393 Staff changes—Cont. Burke, Ronald G., Director, Division of Federal Carey, Brian 709 Reserve Bank Operations, resignation 603 Carmichael, Elizabeth L 52 Burns, Arthur F.: Chase, Samuel B., Jr 460 Current recession in perspective, paper 273 Denkler, John M 391 Economy, statements on condition and course of Doyle, Daniel M 391 monetary and fiscal policy ...69, 282, 491, 497, Ettin, Edward C 709 625, 628, 640, 744 Farnsworth, Clyde H., Jr 459 Federal Reserve Act Amendments of 1975, Fisher, Robert M 52 statement 730 Guenther, Kenneth A 536 Fiscal and economic problems of Nation, state- Hawke, John D., Jr 336 ments 60, 161 Junz, Helen B 52 Government in the Sunshine Acts, statement . 750 Kalchbrenner, John H 118,709 Grain sales to Soviet Union, statement 574 Kichline, James L 709 Money supply, credit allocation, and supple- Kluckman, Jerauld C 709 mentary reserve requirements, statement ... 62 Kudlinski, James R 603 Money supply, statement 150 Lawrence, Robert J 391 New York City financial crisis, statements 632, 736 Mannion, Robert E 709 Theft, apparent, from files of Board 155 Meetze, Henry W 52 Mingo, John J 391 CANNON, John T., Ill, director, Jacksonville Oehmann, Andrew F 52 Branch, appointment 709 Peret, J. Cortland G 52 Carey, Brian, Assistant Director, Division of Fed- Pierce, James L 460 eral Reserve Bank Operations, appointment .. 709 Plotkin, Robert S 183 Carmichael, Elizabeth L., Assistant Secretary, Of- Rippey, John 536 fice of the Secretary, retirement 52 Ryan, John E 52, 709 Carta, Alvaro Luis, director, Miami Branch, ap- Siegman, Charles J 603 pointment 460 Sigel, Stanley J 536 Chase, Samuel B., Jr., Adviser to the Board, res- Smith, Robert, III 261 ignation 460 Truman, Edwin M 603 Christian, Stephen T., director, Buffalo Branch, Wallace, William H 337, 603 appointment 90 Weiner, Louis 52 Coldwell, Philip E.: Welsh, Gary M 52 Disclosure of data for investor analysis of banks Wendel, Helmut F 709 and bank holding companies, statement 416 Wernick, Murray S 52 U.S. Govt, obligations, statement on proposed Wetzel, James R 709 extension of authority of Reserve Banks to Williams, Kenneth B 52 purchase directly from Treasury 741 Williams, Tyler E., Jr 118 Commercial banks: Zeisel, Joseph S 52, 709 Consumer lending, article 263 Boltz, Paul W., article 221 Credit, statement on proposed mandatory report- Branch banks: ing on volume 296 Federal Reserve: Crime against banks, statement 844 Directors (See Directors) Foreign branches of member banks, assets and Miami Branch, approval of proposal to estab- liabilities 823 lish, and opening 260, 460 Lending policies, surveys of bank response to Vice Presidents in charge A-81 Federal Advisory Council statement ... 129,405 Foreign: Lending practices, 1974, article on changes .. 221 Assets and liabilities of overseas branches of Loan commitments at selected large commercial member banks 823 banks, article and announcement 226, 337 Loans to executive officers of national and Securities activities, statement 855 State member banks and certain insurance Time and savings deposits, surveys 13, 356, agency and brokerage activities, amendment 546, 618 and interpretation of Regulation M 587 Construction, housing, and residential mortgage Reserve requirement on foreign borrowings, markets, article 711 amendment of Regulation M 260, 306 Consumer: Brandin, Donald N., Class A director, St. Louis, Credit (See Credit) election 96 Leasing, statements 413, 474 Brenneman, Jay Paul, Special Assistant to the Lending at commercial banks, article 263 Board, appointment 336 Protection program of Board, statement 157 Bucher, Jeffrey M.: Coombs, Charles A., report 131 Consumer Leasing Act of 1975, statement ... 413 Cooney, Lloyd E., director, Seattle Branch, ap- Consumer protection program of Board of Gov- pointment 261 ernors, statement 157 Corporate finance, article on recent developments 463 Equal Credit Opportunity Act and consumer Credit (See also Loans) leasing, statements 280, 474 Allocation, statement concerning proposed Fair Credit Billing Act, statement 638 legislation 62 Member of Board of Governors, resignation . 911 Commercial bank, statement on proposed man- Securities activities of commercial banks, state- datory reporting on volume 296 ment 855 Equal Credit Opportunity Act, statements and Buckley, Robert J., director, Pittsburgh Branch, issuance of new Regulation B 280, 474, resignation 709 705, 762 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • December 1975 » Pages Pages Credit—Continued Edwards, Richard D., director, Pittsburgh Branch, Fair credit billing, amendment of Regulation Z appointment 92 to implement and statement 600, 638, 649 Electronic fund transfers, designation of Vice Federal Reserve Banks (See Interest rates) Chairman Mitchell as member of national com- Improved Fund Availability at Rural Banks .. 390 mission 708 New York City financial crisis and emergency English, James F., Jr., Class A director, Boston, assistance to financially troubled cities, state- election 89 ments 409, 632, 636, 728, 735, 736 Equal Credit Opportunity Act ... 280, 474, 705, 762 Stocks (See Stock market credit) Ettin, Edward C., Adviser, Division of Research Truth in lending (See Truth in lending) and Statistics, appointment 709 Crime against banks, statement 844 Euro-dollar borrowings, reserves against, amend- Cyrnak, Anthony W., article 349 ment of Regulations D and M 260, 306 DAVIS, Jean McArthur, director, Miami Branch, FARNSWORTH, Clyde H., Jr., Assistant Director, appointment 460 Division of Federal Reserve Bank Operations, Denkler, John M., Managing Director for Opera- appointment 459 tions, appointment 391 Federal Advisory Council: Deposits: Bank lending policies, surveys of bank responses Business savings deposits, amendment of defini- to Council statement 129, 405 tion in Regulations D and Q to permit . 708, 769 Members and officers A-80 Demand deposits, net, amendment of Regulation Federal agency securities, operations 389 D to reduce reserves 51, 103 Federal budget policy, article on recent trends .. 393 Foreign borrowings, amendment of Regulations Federal Open Market Committee: D and M 260, 306 Federal agency securities, operations 389 Individual Retirement Accounts (IRA), estab- Foreign exchange operations, reports 131, 364, lishment, amendment of Regulation Q 912 553 Investment Certificates, amendment of Regula- Members and officers A-80 tion Q to establish, and rate 28 Minutes, 1969, availability 118 Negotiable orders of withdrawal (NOW's) issued Operations in 1974, report 197 to governmental units, amendment of Regula- Policy actions: tion Q 260, 307 Publication speed-up, revision of rules 261 Pre-authorized transfers of funds from deposi- Record 20, 76, 230, 299, tors' savings accounts, amendment of Regula- 368, 433, 505, 580, 641, 755, 873 tion Q 513,534 Rules and regulation, amendments .170, 171, 245 Rates or dividends, authority of Federal regula- Swap arrangements 602 tory agencies to set maximum, statement .. 576 U.S. Govt, securities, repurchase agreements .. 389 Telephone use in banking, interpretation of Reg- Federal Reserve Act: ulation Q 261,308 Amendments of 1975, statement 730 Time and savings, surveys 13, 356, 546, 618 Section 14(b), U.S. Govt, obligations, state- Time deposits: ment on proposed extension of authority of After maturity, and payment without penalty Reserve Banks to purchase directly from before maturity, amendment of Regulation Treasury 741 Q 389,440 Section 25: Initial maturity of 4 years or more, amendment Foreign banks for purposes of, interpretaof Regulation D to reduce reserves .. 705, 769 tion 307 Directors: Order under 700 Federal Reserve Banks: Federal Reserve and Treasury reports, foreign ex- Chairmen and Federal Reserve Agents . 89, A-81 change operations 131, 364, 553 Class C, appointment, addition to list 261 Federal Reserve Banks: Deputy Chairmen 89, A-81 Authority to purchase U.S. Govt, obligations List 89 directly from Treasury, statement on proposed Federal Reserve branch banks: extension 741 Appointments, additions to list ...261, 460, 709 Branches (See Branch banks) Chairmen and Deputy Chairmen 89, A-81 Chairmen and Deputy Chairmen 89, A-81 List 89 Delegation by Board of certain authority to, Discount rates at Federal Reserve Banks (See In- amendment of rules 29 terest rates) Directors (See Directors) Dividends: Discount rates (See Interest rates) Federal Reserve Banks 51 Earnings and expenses 51 Member banks, 1974, article 349 Emergency Housing Act, letter 535 Doyle, Daniel M., Managing Director for Opera- Expenditures, amendment of Rules Regarding tions, resignation 391 Delegation of Authority 515 Foreign boycott practices, letter 913 EAGLESON, William B., Jr., Class A director, New York, publication of weekly statistical re- Philadelphia, election 90 ports glossary 912 Earnings and expenses: Open market operations, revision of regulation 171 Federal Reserve Banks, 1974 51 Presidents and Vice Presidents, list A-81 Member banks, article and announcement . 349, 912 Federal Reserve notes, interest paid to Treasury . 51 Economy: Federal Reserve System (See also Board of Gover- Condition, statements 69, 282, 491, 497, nors): 625, 628, 640, 744 Admissions of State banks to membership 52, 119, In 1974, article 1 183, 261, 337, 391, 460, 536, 603, 709 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 61 A 93 Pages Pages Federal Reserve System—Continued INCOME and expenses (See Earnings and ex- Audit by Government Accounting Office, pro- penses) posed, statement 288 Industrial production, Board releases .. 53, 120, 185, Expenditures during 1974, analyses sent to Con- 262, 339, 392, 461, 537, 604, 710, 827, 916 gress 534 Interest on deposits: Publications (See Publications in 1975) Business savings deposits, amendment of defi- Swap arrangements 602 nition in Regulation Q to permit such depos- Figgins, Weston P., Class B director, Boston, its 708, 769 election 89 Individual Retirement Accounts (IRA), estab- Finance, corporate, article on recent developments 463 lishment, amendment of Regulation Q 912 Financial developments, quarterly reports to Con- Investment Certificates, establishment and rate, gress 121, 341, 539, 829 amendment of Regulation Q 28 Financial Institutions in the Nation's Economy Maximum permissible rates or dividends, au- (FINE) study, statement 859 thority of Federal regulatory agencies to set, Financial markets, international, article on devel- statement on extending 576 opments 605 Negotiable orders of withdrawal (NOW's) is- Fiscal and economic problems of Nation, state- sued to governmental units, amendment of ments 60, 161 Regulation Q to prohibit 260, 307 Fisher, Robert M., Assistant Adviser, Division of Pre-authorized transfers of funds from deposi- Research and Statistics, appointment 52 tors' savings accounts, amendment of Regula- Fleming, Thomas F., Jr., director, Miami Branch, tion Q 513, 534 appointment 460 Telephone use in banking, interpretation of Reg- Flow of funds accounts, publication of revised ulation Q 261,308 description 183 Time deposits after maturity and payment with- Foreign activities of national banks, amendment out penalty before maturity, amendment of and interpretation of Regulation M ..260, 307, 587 Regulation Q 389,440 Foreign banking and financing corporations, inter- Interest rates (See also Interest on deposits): pretation of Regulations K and Y 671 Federal Reserve Banks, reductions in rates . 51, 118, Foreign banks: 183, 335 Definition, interpretation of Regulation M 307 International financial markets, article on develop- Legislation proposed to regulate 183 ments 605 Reserve requirement on foreign borrowings, vol- International transactions by U.S. in 1974, article 187 untary 260 Interpretations, Board of Governors: Role in United States, and activities of U.S. Bank holding companies 245, 588, 671, 818 banks abroad, statement 859 Foreign bank, definition 307 Foreign branches of member banks (See Branch Foreign investments of Edge Act corporations banks) and domestic bank holding companies, limita- Foreign currency arrangements 602 tion under general consent procedures 671 Foreign exchange operations, reports of Treasury Gold, ownership by U.S. citizens 33 and Federal Reserve 131, 364, 553 Loans to executive officers of foreign branches Franco, Michael J., director, Miami Branch, ap- of national and State member banks 587 pointment and subsequent resignation 460, 709 Operations subsidiaries, foreign 169 Stock option and stock purchase plans as extensions of credit subject to Regulation G 33 GARDNER, David P., director, Salt Lake City Telephone use in banking 261, 308 Branch, appointment 102 Truth in lending (Regulation Z) .... 33, 336, 375, Garlington, James C., director, Helena Branch, 881, 912 appointment 98 Investment Certificates, establishment and rate, Gilliand, Merle E., Class A director, Cleveland, amendment of Regulation Q 28 election 91 Investments: Giltner, F. Phillips, director, Omaha Branch, ap- Capital, statement on problems concerning overpointment 99 all supply and demand 848 Gold, ownership by U.S. citizens, interpretations 33 Taxes and capital formation, statement 411 Grissom, J. David, director, Louisville Branch, appointment 96 Guenther, Kenneth A., Assistant to the Board, JACKSON, Philip C., Jr.: appointment 536 Member of Board of Governors, appointment . 459 Real Estate Settlement Procedures Act, state- HARDISON, James A., Jr., Class A director, ments on proposals »to amend 578; 742 Richmond, election 92 Jensen, Mary S., director, Salt Lake City Branch, Hawke, John D., Jr., General Counsel, appoint- appointment 709 ment 336 Johnson, W. M., director, Nashville Branch, ap- Helgeson, Donald P., Class B director, Min- pointment 94 neapolis, appointment 97 Jones, Frank A., Jr., director, Memphis Branch, Hines, Gerald D., Class B director, Dallas, election 99 appointment 261 Holland, Robert C.: Jones, James H., director, New Orleans Branch, Bank regulation and supervision, state- resignation 709 ments 419,486,851 Jordan, Castle W., director, Miami Branch, ap- Commercial bank credit, statement on proposed pointment 460 mandatory reporting on volume 296 Junell, Frank, Class A director, Dallas, election . 99 Holmes, Alan R., reports 197, 364, 553 Junz, Helen B., Adviser, Division of International Housing (See Real estate) Finance, appointment 52 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • December 1975 » Pages Pages KALCHBRENNER, John H., Associate Adviser; McCARTY, Stuart, Class A director, New York, Adviser, Division of Research and Statistics, election 90 appointments 118, 709 Maier, Cornell C., Class C director, San Francisco, Kelley, G. Larry, director, Little Rock Branch, appointment 261 appointment 709 Mannion, Robert E., Adviser, Legal Division, ap- Kichline, James L., Associate Director, Division pointment 709 of Research and Statistics, appointment 709 Margin credit, article 209 Kluckman, Jerauld C., Assistant Director, Office Margin requirements (Regulations G, T, and U): of Saver and Consumer Affairs, appointment.. 709 Over-the-counter stocks, revised lists 183, 709 Knoell, W. H., director, Pittsburgh Branch, ap- Same-day credit restriction for stocks, extended pointment 709 suspension and reinstatement, amendments 336, Kudlinski, James R., Director, Division of Federal 649, 707 Reserve Bank Operations, appointment 603 Stock option and stock purchase plans as extensions of credit, interpretation 33 LAMPTON, R. B., director, New Orleans Branch, Meetze, Henry W., Associate Director, Division appointment 94 of Data Processing, resignation 52 Lawrence, Robert J., Deputy Managing Director Member banks (See also National banks): for Operations, appointment 391 Branches (See Branch banks) Lawson, James R., director, Nashville Branch, ap- Credit, extensions by Federal Reserve Banks, pointment 94 reductions in rates 51, 118, 183, 335 Leasing, statements 413,474 Gold, ownership by U.S. citizens, interpretations 33 Leavitt, Brenton C., statement on crime against Income: banks 844 Condition and income, postponement of re- Legislation (See also Statements to Congress): vised reports 912 Audit of Federal Reserve System by Government In 1974, article 349 Accounting Office, proposed, statement 288 Investment Certificates, establishment and rate, Bank regulation and supervision, proposed, amendment of Regulation Q 28 statements 419, 486, 851 Negotiable orders of withdrawal (NOW's) issued Commercial bank credit, proposed mandatory to governmental units, amendment of Regulareporting on volume, statement 296 tion Q to prohibit 260, 307 Congressional Budget and Impoundment Control Pre-authorized transfers of funds from deposi- Act, article 393 tors' savings accounts, amendment of Regula- Consumer leasing, statements 413, 474 tion Q 513,534 Depository Institutions Act of 1974 824 Reserve requirements (See Reserve require- Emergency Housing Act of 1975, Board letter 535 ments) Equal Credit Opportunity Act ..280, 474, 705, 762 State member banks (See State member banks) Fair credit billing, amendment of Regulation Z Telephone use in banking, interpretation of Regto implement and statement 600, 638 ulation Q 261, 308 Federal Reserve Act Amendments of 1975, Miller, Martin C., director, New Orleans Branch, statement 730 appointment 709 Foreign banking in the United States, proposed Miller, Paul A., director, Buffalo Branch, aplegislation 183 pointment 90 Government in the Sunshine Acts, statement . 750 Mingo, John J., Associate Adviser, Division of Money supply, credit allocation, and supple- Research and Statistics, appointment 391 mentary reserve requirements, proposed, state- Mitchell, George W.: ments 62, 150 Audit of Federal Reserve System by Government Privacy Act 666 Accounting Office, proposed, statement 288 Rate ceilings on deposits or share accounts, au- Emergency credit assistance to financially trouthority of Federal regulatory agencies to set bled cities and recent New York City crisis, maximum, statement on extending 576 statements 409, 728 Real Estate Settlement Procedures Act .. 336, 375 Financial Institutions in the Nation's Economy 578, 742, 825 (FINE) study, statement 859 Securities Acts Amendments of 1975 824, 911 National Commission on Electronic Fund U.S. Govt, obligations, statement on proposed Transfers, designation as member 708 extension of authority of Reserve Banks to Rate ceilings on deposits or share accounts, aupurchase directly from Treasury 741 thority of Federal regulatory agencies to set Lever, Chauncey W., director, Jacksonville maximum, statement on extending 576 Branch, appointment 94 Mitchell, William W., director, Memphis Branch, Lewis, Virginia, articles 356, 546, 618 appointment 97 Litigation, pending cases involving Board of Monetary policy in a changing financial environ- Governors 704, 821, 909 ment, report on 1974 open market operations . 197 Loan commitments at selected large commercial Monetary reform and exchange-rate management, banks, article and announcement on new data statement 480 series 226, 337 Money supply, statements 62, 150 Loans (See also Credit): Mortgage markets, article 711 Bank lending policies, surveys of bank responses to Federal Advisory Council statement .. 129, 405 NATIONAL banks: Bank lending practices, 1974, survey 221 Foreign activities, amendment and interpretation Consumer, at commercial banks, article 263 of Regulation M 306, 307, 587 Executive officers of foreign branches of national Reserve requirement on foreign borrowings, and State member banks, amendment and in- amendment of Regulation M 260, 306 terpretation of Regulation M 587 Negotiable orders of withdrawal (NOW's) ...260, 307 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 61 A 95 Pages Pages New York City financial crisis, statements .. 409, 632 Regulations and rules—Continued 636, 728, 735, 736 F, Securities of Member State Banks: Nonbank thrift institutions in 1974, article 55 Securities and Exchange Commission rules, revision to conform 770, 824 OEHMANN, Andrew F., Acting General Counsel, G, Securities Credit by Persons Other Than retirement 52 Banks, Brokers, or Dealers: Open market operations (See Federal Open Market Same-day restriction for stocks, extended sus- Committee) pension and reinstatement, amendments .336, Operations subsidiaries, foreign, interpretation... 169 649, 707 Over-the-counter stocks 183, 709 Stock option and stock purchase plans as extensions of credit, interpretation 33 PARDEE, Scott E., reports 364, 553 H, Membership of State Banking Institutions in Partee, J. Charles, statements on New York City the Federal Reserve System: financial crisis 636, 735 State member banks acting as transfer agents, Peret, J. Cortland G., Assistant Adviser, Division registration with Board, amendment 804, of Research and Statistics, appointment 52 824,911 Pierce, James L., Associate Director, Division of K, Corporations Engaged in Foreign Banking and Research and Statistics, resignation 460 Financing Under the Federal Reserve Act: Pierce, W. M., director, Little Rock Branch, resig- Foreign investments of Edge Act corporations, nation 709 interpretation of limitation under general Plotkin, Robert S., Assistant Director, Office of consent procedures 671 Saver and Consumer Affairs, appointment 183 M, Foreign Activities of National Banks: Policy actions, Federal Open Market Foreign bank, definition, interpretation 307 Committee 20, 76, 230, 261, 299, 368, 433, Insurance agency and brokerage activities, 505, 580, 641, 755, 873 amendment 587 Prell, Michael, articles 13, 356 Loans to executive officers, amendment and Production (See Industrial production) interpretation 587 Publications Committee, establishment 389 Reserve requirement on foreign borrowings, Publications in 1975: amendment 260, 306 Board of Governors: Q, Interest on Deposits: Annual Report, 1974 459 Business savings deposits, amendment of def- "Capital Market Developments" and "Se- inition to permit such deposits 708, 769 lected Interest and Exchange Rates— Individual Retirement Accounts (IRA), estab- Weekly Series of Charts," subscription lishment, amendment 912 rates 708 Investment Certificates, establishment and Flow of funds accounts, revised description 183 rate, amendment 28 Improved Fund Availability at Rural Banks 390 Negotiable orders of withdrawal (NOW's) is- List of available publications A-82 sued to governmental units, amendment to Over-the-counter margin stock lists, prohibit 260, 307 revised 183,709 Pre-authorized transfers of funds from deposi- Federal Reserve Bank of New York: tors' savings accounts, amendment ...513, 534 Glossary: Weekly Federal Reserve Telephone use in banking, interpretation 261, 308 Statements 912 Time deposits after maturity and payment without penalty before maturity, amend- REAL estate: ments 389, 440 Emergency Housing Act of 1975, Board letter Rules of Organization and Rules of Procedure, regarding 535 Federal Open Market Committee, amendments 171 Home purchase transactions, adoption of disclo- Rules Regarding Access to and Review of Persure form and interpretation of Regula- sonal Information in Systems of Records, tion Z 336, 375 adoption : 666 Housing construction and residential mortgage Rules Regarding Availability of Information, markets, article 711 amendment of, by Board and Federal Open Housing discrimination, possible, pilot survey by Market Committee 167, 170, 245 Board 336 Rules Regarding Delegation of Authority, Real Estate Settlement Procedures Act .... 336, 375, amendments 29, 245, 440, 515, 670, 881 578, 742, 825 T, Credit by Brokers and Dealers: Recession, current, paper presented by Chairman Private placement of securities, amendment Burns 273 to assist 825, 880 Record of policy actions of Federal Open Market Same-day restriction for stocks, extended sus^ Committee 20, 76, 230, 261, 299, 368, 433, pension and reinstatement, amendments .336, 505, 580, 641, 755, 873 , 649, 707 Regulations and rules, Board of Governors: U, Credit by Banks for the Purpose of Purchasing B, Equal Credit Opportunity: or Carrying Margin Stocks: Issuance of new Regulation B 705, 762 Same-day restriction for stocks, extended sus- D, Reserves of Member Banks: pension and reinstatement, amendments . 336, Business savings deposits, amendment of def- 649, 707 inition to permit such deposits 708, 769 Y, Bank Holding Companies: Demand deposits, net, reductions, amend- Automobile leasing as continued permissible ment 51, 103 activity, proposal to consider 818 Foreign borrowings, amendment 260, 306 Courier activities, interpretation 588 Time deposits with initial maturity of 4 years Data processing as activity closely related to or more, reduction, amendment 705, 769 banking, interpretation 245 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • December 1975 » Pages Pages Regulations and rules—Continued State member banks: Y, Bank Holding Companies—Cont. Admissions to membership in Federal Reserve Foreign investments of domestic bank holding System 52, 119, 183, 261, 337, 391, companies, interpretation of limitation 460, 536, 603, 709 under general consent procedures 671 Bank security, Board letter concerning 390 Transfer agents, registration with Board when Condition and income reports, postponement of acting as, amendment 880, 911 effective date for implementing proposed revi- Z, Truth in Lending: sion 912 Amendments .... 459, 513, 600, 649, 708, 825 Crime against banks, statement 844 Interpretations 33, 336, 375, 881,912 Emergency Housing Act, letter 535 Repurchase agreements, U.S. Govt, securities ... 389 Foreign boycott practices, letter 913 Reserve requirements: Loans to executive officers of foreign branches, Member banks: amendment, interpretation of Regulation M . 587 Business savings deposits, amendment of def- Mergers (See Bank Merger Act) inition in Regulation D to permit such de- Operations subsidiaries, foreign, interpretation 169 posits 708, 769 Securities, amendment of Regulations F and Demand deposits, net, reductions, amendment H 770,804,824,911 of Regulation D 51, 103 Trustees of retirement plans, authority granted Foreign borrowings, amendment of Regula- by Board in certain circumstances 389 tions D and M 260, 306 Statements to Congress: Supplementary, for redistributing credit flows, Audit of Federal Reserve System by Government statement on proposed legislation 62 Accounting Office, proposed 288 Time deposits with initial maturity of 4 years Bank regulation and supervision 419, 486, 851 or more, reduction, amendment of Regula- Capital, problems concerning 848 tion D 705, 769 Commercial bank credit, proposed mandatory Voluntary, by foreign-owned institutions in the reporting on volume 296 United States 260 Consumer leasing 413, 474 Rippey, John, Assistant to the Board, resig- Consumer protection program of Board 157 nation 536 Crime against banks 844 Robinson, David G., director, Miami Branch, ap- Disclosure of data for investor analysis of banks pointment 460 and bank holding companies 416 Rogers, L. H., II, director, Cincinnati Branch, Economy, condition, and course of monetary and appointment 91 fiscal policy 69, 282, 491, 497, Ryan, John E., Adviser; Assistant Director, Divi- 625, 628, 640, 744 sion of Banking Supervision and Regula- Equal Credit Opportunity Act 280, 474 tion, appointments 52, 709 Fair Credit Billing Act 638 Ryan, William E., Class A director, Minneapolis, Federal Reserve Act Amendments of 1975 730 election 97 Federal Reserve System expenditures, analyses 534 Financial developments, quarterly reports to Congress: SCHOENHOFEN, Leo H., Class C director, Chi- Q—4, 1974 121 cago, appointment 95 Q-l, Q-2, and Q-3, 1975 341, 539, 829 Securities (See also U.S. Govt, securities): Financial Institutions in the Nation's Economy Commercial banks, statement on activities 855 (FINE) study 859 State member banks, amendment, Regulations F Fiscal and economic problems of Nation ...60, 161 and H 770, 804, 824 Foreign banks 859 Stocks (See Stock market credit) Government in the Sunshine Acts 750 Selover, George H., director, Helena Branch, ap- Grain sales to Soviet Union 574 pointment 98 International monetary reform and exchange-rate Shaub, Harold A., Class B director, Philadelphia, management 480 election 90 Money supply 150 Sheehan, John E., Member of Board of Governors, Money supply, credit allocation, and suppleresignation 335 mentary reserve requirements 62 Siegman, Charles J., Associate Adviser, Division New York City financial crisis and emergenof International Finance, appointment 603 cy credit assistance to financially troubled Sigel, Stanley J., Assistant to the Board, Office cities 409, 632, 636, 728, 735, 736 of Managing Director for Research and Eco- Rate ceilings on deposits or share accounts, aunomic Policy, appointment 536 thority of Federal regulatory agencies to set Smith, Robert, III, Assistant Secretary of the maximum, statement on extending 576 Board, temporary appointment 261 Real Estate Settlement Procedures Act, proposals Solow, Robert M., Class C director, Boston, ap- to amend 578,742 pointment 89 Securities activities of commercial banks 855 Spies, John F., Class A director, Chicago, Taxes and capital formation 411 election 95 Theft, apparent, from files of Board 155 Staff economic studies: U.S. Govt, obligations, proposed extension of MINNIE, small econometric model 721 authority of Reserve Banks to purchase di- Summaries: rectly from Treasury 741 Bank holding companies, performance of in- Stock market credit: dividual companies 472 Over-the-counter margin stocks, revised Economic accounts, household sector 11 lists 183,709 Stamper, Malcolm T., director, Seattle Branch, Private placement of securities, amendment of appointment 102 Regulation T to assist 825, 880 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 61 A 97 Pages Pages Stock market credit—Continued WADSWORTH, DC., Jr., director, Birmingham Same-day restriction for stocks, extended sus- Branch, appointment 94 pension and reinstatement, amendment of Wallace, William H., Associate Dirctor, Division Regulations G, T, and U 336, 649, 707 of Federal Reserve Bank Operations; Director, Stock option and stock purchase plans as exten- Division of Federal Reserve Bank Examinations sions of credit subject to Regulation G, inter- and Budget, appointments 337, 603 pretation 33 Wallich, Henry C.: Swap arrangements 602 Capital, statement on problems concerning ... 848 International monetary reform and exchange-rate TABLES (See list at bottom of p. A-98 for tables management, statement 480 published periodically; see guide at top of p. Taxes and capital formation, statement 411 A-88 for index to tables published monthly) Weber, Arnold R., director, Pittsburgh Branch, ap- Thompson, V. M., Jr., director, Oklahoma City pointment 92 Branch, appointment 99 Weiner, Louis, Assistant Adviser, Division of Re- Thrift institutions, nonbank, in 1974, article 55 search and Statistics, retirement 52 Treasury and Federal Reserve: Welsh, Gary M;, Adviser, Legal Division, ap- Authority of Federal Reserve to purchase obliga- pointment 52 tions directly from Treasury, statement on Wendel, Helmut F., Associate Adviser, Division proposed extension 741 of Research and Statistics, appointment 709 Foreign exchange operations, reports ... 131, 364, Wernick, Murray S., Adviser, Division of Research 553 and Statistics, retirement 52 Truman, Edwin M., Associate Adviser, Division Wetzel, James R., Associate Adviser and Chief, of International Finance, appointment 603 Wages, Prices, and Productivity Section, Divi- Truth in lending: sion of Research and Statistics, appoint- Regulation Z: ment 709 Amendments 459, 513, 600, 649, 708, 825 Williams, John R., articles 546, 618 Interpretations 33, 336, 375, 881,912 Williams, Joseph H., Class C director, Kansas Statement 638 City, appointment 98 Tyre, MacDonnell, director, Jacksonville Branch, Williams, Kenneth B., Adviser, Division of Reappointment 94 search and Statistics, retirement 52 Williams, Tyler E., Jr., Assistant Controller, ap- ULREY, Ann P., article 209 pointment 118 U.S. Government securities: Woodfin, Gene M., director, Houston Branch, ap- Authority of Reserve Banks to purchase directly pointment 100 from Treasury, statement on proposed extension 741 YOUNGBLOOD, Charles S., director, Memphis Repurchase agreements, operations 389 Branch, appointment 97 U.S. international transactions in 1974, article... 187 ZEISEL, Joseph S., Adviser; Associate Director, VERNON, William H., director, Denver Branch, Division of Research and Statistics, appointappointment 98 ments 52, 709 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 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 particn.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 characissues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarferly Issue Page Annually—Continued Issue Page Sales, revenue, profits, and Banks and branches, number, dividends of large manu- bbyy ccllaassss aanndd SSttaattee AApprr.. 1975 A-76—A-77 facturing corporations DDeecc.. 11997755 AA--7766 SSeemmiiaannnnuuaallllyy FFllooww ooff ffuunnddss:: Banking offices: Assets and liabilities: Number in the 1962-73 Oct. 1974 A-59.14—A-59.28 United States Aug. 1975 A-76 Number of par and nonpar 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 Dec. 1975 A-83 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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