Federal Reserve Bulletin, 1976-03

M A R C H 1976 FEDERAL RESERVE BULLETIN F in an cial D e v elo p m en ts in th e F o u rth Q u arter of 1975 S u rv ey o f F in a n c e C o m p a n ie s, 1975 T reasu ry an d F ed eral R e serv e F o re ig n E x c h a n g e O p eratio n s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States, 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 NUM BER 3 □ VO LU M E 62 □ M AR C H 1976 C O N T E N T S 189 Financial Developments A1 Financial and Business Statistics in the Fourth Quarter of 1975 A1 Contents 197 Survey of Finance Companies, 1975 A2 U.S. Statistics A58 International Statistics 208 Treasury and Federal Reserve Foreign Exchange Operations A76 Board of Governors and Staff 227 Statements to Congress A78 Open Market Committee and Staff; Federal Advisory Council 239 Record of Policy Actions of the Federal Open Market Committee A79 Federal Reserve Banks and Branches 247 Law Department A80 Federal Reserve Board Publications 279 Announcements A82 Index to Statistical Tables 281 Industrial Production A84 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation and Statistical Releases PU B LIC A TIO N S C O M M IT TE E Lyle E. Gramley Joseph R. Coyne John M. Denkler Ralph C. Bryant Frederic Solomon 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 Fourth Quarter of 1975 This report, which was sent to the Joint Eco­ of turnover of money balances rose sharply. The nomic Committee of the U.S. Congress on Feb­ narrowly defined money stock {Mx) grew at a ruary 23, 1976, highlights the important devel­ seasonally adjusted annual rate of only 2.5 per opments in financial markets during the fall and cent, reflecting an essentially flat demand de­ early winter. posit component. The sustained weakness of Mx relative to income and interest rates, which has been apparent for a considerable period of time, The U.S. economy continued to strengthen dur­ suggests that there has been a fundamental ing the fourth quarter of 1975, registering fur­ change in the public’s cash management prac­ ther increases in production, employment, and tices—a change likely stimulated in part by the expenditures. Nevertheless, credit markets ex­ unprecedentedly high level of interest rates in hibited few of the pressures that frequently have 1974 and facilitated by numerous innovations developed at a similar stage in past cyclical that have greatly increased the liquidity of many recoveries. Private credit demands remained interest-earning assets. The sluggish behavior of moderate, and most interest rates declined sig­ Mi contributed importantly to the slower growth nificantly during the final months of the year. of the broader monetary aggregates—Af2 and Growth in the major money stock measures M3—during the fourth quarter, but the modera­ slowed during the fourth quarter, while the rate tion of time and savings deposit inflows at banks Interest rates Per cent per annum SHORT-TERM LONG-TERM Federal funds Aaa utility NOTES: New issue 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 State and local government publicly offered bonds rated Aaa, Aa, and A by Moody’s investors Service and adjusted to 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

190 Federal Reserve Bulletin □ March 1976 and thrift institutions from the exceptional pace time deposits with original maturities between of earlier quarters also played a significant role. 180 days and 4 years and reduced required The Federal Reserve acted during the fourth reserves by $320 million. In January, following quarter to ensure continued growth of the mon­ the general decline in short-term market interest etary aggregates sufficient to support further rates, the Board approved a reduction from 6 solid gains in economic activity. System open to 5 Vi per cent in the rate charged member banks market operations became more accommodative on loans from the Federal Reserve. over the period. In addition, the Board enacted Yields on most money market instruments two reductions in reserve requirements that, declined 1 to IV2 percentage points between the besides encouraging a lengthening in the matu­ end of September and the end of December and rity of deposit liabilities, increased the lendable continued downward in January. By early Jan­ funds of member banks. The first of these regu­ uary the Federal funds rate—the rate commer­ latory actions, effective November 5, reduced cial banks pay to borrow immediately available from 3 to 1 per cent the reserve requirement funds overnight—had fallen to 43A per cent. The on time deposits with original maturities of 4 decline in market interest rates and the contin­ years or more and lowered the total required ued relative weakness of business loan demands reserves of member banks by about $360 mil­ led banks to reduce their prime lending rate in lion. The second action, announced in De­ several steps—from 13A per cent in late October cember and becoming effective in early January, to 6% per cent in January. cut from 3 to 2V2 per cent the requirement on Yields on long-term instruments also moved TA B LE 1 C hanges in selected m onetary aggregates In per cent, seasonally adjusted annual rates 1975 Item 1974 1975 NOTES: Ql Q2 Q3 Q4 1 Total reserves less required re­ Member bank reserves: serves for U.S. Govt, and interbank Total .......................................................... 8.5 -.3 -8.3 1.2 -2.2 8.3 deposits. Required reserves .................................. 8.7 -.4 -7.8 1.2 -2.1 7.2 2 Mi is currency plus private de­ Nonborrowed .......................................... 10.7 1.4 1.3 -.2 4.2 11.6 mand deposits adjusted. Available to support private nonbank deposits1 ............................ 8.9 -.9 -4.7 .5 2.6 3.2 M2 is Mi plus bank time and sav­ ings deposits adjusted other than Concepts of money calculated from:2 large CD’s. Quarterly-average— M3 is M2 plus deposits at mutual Mx ....................................................... 5.0 4.4 .6 7.4 7.1 2.5 savings banks and savings and loan M2 ......................................................... 7.7 8.2 5.6 10.2 10.1 6.1 associations and credit union shares. m m 4 3 . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . 1 7 0 . . 1 6 1 6 1 . . 4 0 7 7 . . 5 4 1 5 2 . . 6 6 1 5 3 . .3 7 9 6 . .5 2 M4 is M2 plus large negotiable M5 .............................................................. 9.0 9.6 8.5 9.4 10.1 9.2 CD’s. M5 is M3 plus large negotiable End-month of quarter— CD’s. Mi .............................................................. 4.7 4.2 1.4 9.7 3.6 1.9 3Savings and loan associations, M2 ......................................................... 7.2 8.3 6.9 12.5 6.5 6.4 mutual savings banks, and credit m3 ........................................................ 6.8 11.2 9.0 14.5 10.7 8.9 unions. m m 4 5 . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1 9 0 . . 0 6 9 6. . 3 6 6 8. . 3 0 1 7 1 . . 7 3 8 3 . . 1 0 9 7. . 8 6 4Total member bank deposits plus funds provided by Euro-dollar bor­ Time and saving deposits rowings and bank-related commer­ (quarterly average basis) at: cial paper. Commercial banks (other than large CD’s) ......................................... 10.1 11.5 9.9 12.5 12.7 9.1 Note.—Changes are calculated Nonbank thrift institutions3 ................ 6.1 15.8 10.7 16.5 18.4 14.2 from the average amounts outstand­ Bank credit proxy, adjusted4 .................. 10.2 4.1 3.1 7.5 -1.6 7.3 ing in the last month of each quarter, except where noted. Quarterlyaverage calculations are based on Memo (change in billions of changes in the average amounts out­ dollars, seasonally adjusted): Large CD’s .............................................. 26.3 -6.9 5.7 -5.0 3.8 standing for a quarter. Annual rates U.S. Govt, demand deposits at all of growth in reserve measures have member banks ................................... -2.0 .8 -1.6 3.4 -1.0 been adjusted for changes in reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q4 1975 191 down moderately during the final quarter of among M1 and other economic variables. Thus, 1975 and into early 1976. The volume of new this extraordinary increase in velocity adds to corporate offerings marketed in the fourth quar­ a growing body of evidence suggesting that ter was large by historical standards, but it was there has been a decline in the public’s desired considerably below the exceptional level of the holdings of money at given levels of GNP and first half. Much of the long-term borrowing by interest rates. businesses late in the year, as in earlier quarters, Contributing to this apparent downward shift apparently was for the purpose of rebuilding in the demand for Mt have been improved liquidity and funding short-term debt. Although techniques of cash management, introduced the volume of new issues by State and local after interest rates reached unprecedented levels governments was much smaller in the fourth in the summer of 1974, and recent innovations quarter than in the third, municipal yields fell and regulatory changes that facilitate the use of less than corporate rates because of continued interest-bearing assets for payments purposes. uncertainties associated with the financial diffi­ These include the spread of overdraft privileges culties of New York City and New York State. for personal checking accounts; the growth of Savings and loan associations further ex­ negotiable order of withdrawal (NOW) ac­ panded their commitments to make mortgage counts; the telephonic transfer of funds from loans on residential properties in the fourth savings accounts to checking accounts at com­ quarter, and the pace of mortgage debt forma­ mercial banks, first authorized in April 1975; tion rose further. Both primary and secondary and the payment of bills, without regard to type, mortgage yields declined gradually from Oc­ through preauthorized nonnegotiable transfers tober through year-end, lagging the downward from commercial bank savings accounts, first movement of other market rates. permitted in September 1975. Moreover, in Changes in the incom e velocity of M jand M 1 M O N E T A R Y A G G R E G A T E S Percentage rate of change Although fluctuating considerably from month to month, Mt grew at only a modest pace on average during the fourth quarter. The two components of this aggregate grew at sharply different rates during the quarter: currency ex­ panded at an 8.4 per cent annual rate, and demand deposits at a 0.4 per cent rate. The pattern of greater strength in the currency com­ ponent prevailed throughout 1975, as Mx in­ creased 4.2 per cent over the year, with currency rising 8.7 per cent and demand deposits 2.7 per cent. The income velocity of Mx—the ratio of gross national product (GNP) to Mx—advanced at about a 9 per cent annual rate during the fourth quarter, after recording a somewhat larger in­ crease in the third quarter. Sizable increases in the rate of turnover of money balances normally occur as an economic recovery begins; how­ ever, the rise in velocity during the second half of 1975, which was much larger than the in­ creases observed in earlier postwar cycles, is difficult to reconcile with historical relations Data are at seasonally adjusted annual rates of growth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin □ March 1976 November commercial banks were authorized fourth quarter the growth in personal income to accept savings deposits in amounts of up to moderated, and there were no special payments $150,000 from businesses operated for profit, to stimulate time and savings inflows. a service previously offered only by savings and The $4 billion increase in outstanding CD’s loan associations and mutual savings banks. By during the fourth quarter, following run-offs early January, these business savings deposits throughout the first three quarters, appears to at commercial banks were estimated to have have been related mainly to two independent been built up to a total of nearly $2 billion; events involving sales by a small number of much of this is believed to have represented large banks. In late September and early Oc­ transfers from business demand deposit ac­ tober several large New York banks sold CD’s counts, thereby accounting for some of the with maturities extending beyond year-end in weakness in the demand deposit component of a move to provide for ample liquidity in the event of financial dislocations associated with M lt As noted earlier, the slackened pace of ex­ the developing New York City crisis. After pansion in Mi accounted for a large part of the these sales were completed, outstanding CD’s moderation of growth in M2 and M3 during the remained unchanged until early December when fourth quarter. But reduced inflows of con­ another sharp rise occurred, probably reflecting sumer-type time and savings deposits at banks efforts by a few large banks to increase deposits and thrift institutions also contributed signifi­ for quarterly financial statement purposes. Sub­ cantly to the slowdown. At commercial banks, sequent developments support this conjecture, passbook savings deposits paced the growth of as large banks allowed nearly $3 billion in CD’s time and savings deposits other than large cer­ to run off in early January. tificates of deposit (CD’s), partly because of the rapid growth of business savings accounts. If estimated values of business savings—which B A N K C R E D IT reached $2 billion in early January—were re­ A N D C O M M E R C IA L P A P E R moved from the November and December levels, the growth rate in the fourth quarter of Demands for short-term business credit re­ time and savings deposits other than large CD’s mained weak during the fourth quarter even as would be roughly SV* per cent rather than the the economic recovery progressed. Business in­ 9 per cent actually measured. In either case, vestment in fixed capital continued to lag the growth in the fourth quarter was significantly expansion in other sectors, and little progress slower than the 12V2 per cent pace of the second was made in rebuilding inventories from de­ and third quarters. At nonbank thrift institu­ pressed levels. In these circumstances rising tions, time deposits accounted for a larger cash flows and the proceeds of capital market proportion of the inflows than did passbook issues provided ample funds with which to meet savings, but the growth rate of total deposits the current financing requirements of busi­ in the final quarter of the year also was down nesses. from the pace of the preceding two quarters. After what appeared to be a firming in de­ The decline in net inflows of time and savings mand for business loans in October and No­ deposits other than large CD’s represented a vember, the level of these loans dropped sharply return to more normal rates of growth for these during December. Part of this decline might be deposits. The abnormally high rate of growth explained by the surge in retail sales in De­ during the spring and summer was substantially cember that reduced retail inventories and bolstered, in all probability, by the large volume created substantial inflows of funds to non­ of tax refunds, tax rebates, and social security financial businesses. For the entire fourth quar­ payments issued in the spring; some of the large ter, business loans expanded moderately, after third-quarter inflow can be attributed also to an having remained unchanged in the third quarter. extraordinary surge in personal income. In the Most of this increase, however, represented Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q4 1975 193 securities relative to other assets, and by De­ TA B L E 2 cember the ratio of Treasury securities to total Rate spreads and changes in assets had reached 11.5 per cent, up from 7.8 business loans and com m ercial paper1 per cent a year earlier. This rise, particularly when viewed in conjunction with the decline Change in the outstanding volume of CD’s and related Rate money market liabilities, is indicative of the spread In billions of dollars3 Annual Period (basis rate for significant improvement that occurred during points)2 Busi­ Commer­ total 1975 in the liquidity positions of commercial (per ness cial Total loans4 paper5 cent) banks. 1974— Q4 155 1.6 2.1 4.3 Com ponents of M ajor categories of 1975— bank credit bank loans Ql 237 -1.6 .8 -.8 -1.6 Q2 170 -4.5 -1.5 -6.0 -12.1 Change, billions of dollars Q3 121 -.3 -.3 -.6 U.S. GOVT. SECURITIES BUSINESS Q4 192 1.1 -1.6 -.5 -1.0 Oct. 191 1.6 1.3 .3 1.9 I 12 Nov. 210 .9 -.8 .1 .6 IT Dec. 175 -1.4 .5 -.9 -5.6 n _ incorporates revisions based on June 30, 1975, reports of t f condition. u —1---1---IZZD— f) 2Prime rate less 30- to 59-day commercial paper rate. 5 REAL ESTATE 3 Seasonally adjusted. 4 4 At all commercial banks based on last-Wednesday-of- iii month data; adjusted for outstanding amounts of loans sold to affiliates. OOTTHER SECURITIES n 5 Nonfinancial company paper measured from end-of-month 4 CONSUMER to end-of-month. + WK&ggSfS i ] ____ □ 0 -,r~i...n , - ..i_j....lit acquisition of bankers acceptances by a few TOTAL LOANS large banks; these increased holdings were largely liquidated in January. 4 NONBANK FINANCIAL n Outstanding nonfinancial commercial paper ~c=r declined during the quarter, despite a wider spread between the bank prime rate and the T T □ ... ...1 commercial paper rate. Because companies with high quality ratings have accounted for most of Q4 Ql Q2 Q3 Q4 Q4 Ql Q2 Q3 Q4 the borrowing in the commercial paper market 1974 1975 1974 1975 since early 1974, the drop in volume suggests Seasonally adjusted. Total loans and business loans adjusted that such companies are generating substantial for transfers between banks and their holding companies, amounts of internal funds to meet current affiliates, subsidiaries, or foreign branches. Incorporates revisions based on June 30, 1975, reports of operating needs. condition. Total loans increased by $3.5 billion in the fourth quarter, the largest increase in more than a year. However, the growth of bank credit— N O N B A N K total loans plus investments—moderated during IN T E R M E D IA R IE S A N D the fourth quarter as commercial banks reduced T H E M O R T G A G E M A R K E T their purchases of securities. The reduction in such purchases may have reflected declining Deposit growth at nonbank thrift institutions yields on Treasury issues as well as the sub­ slowed moderately in the fourth quarter, fol­ stantial additions made to portfolios earlier in lowing very rapid growth in the preceding two 1975. The accumulation of Treasury securities quarters. For 1975 as a whole, the combined during the year raised bank holdings of these deposits of savings and loan associations and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin □ March 1976 mutual savings banks expanded by approxi­ throughout 1975 reflected hesitancy on the part mately 16 per cent, the largest percentage gain of lending institutions and developers to under­ for any year since 1972. As in other recent take multiunit construction projects under pre­ years, deposit growth at savings and loan asso­ vailing conditions. But even though housing ciations was substantially more rapid than that market participants remained cautious, in the at savings banks—17.7 per cent versus 11.2 per fourth quarter there were indications that mul­ cent. tiunit loans were beginning to expand some­ After declining for three consecutive quarters what. As earlier, savings and loan associations (on a seasonally adjusted basis), advances by continued to provide the bulk of new mortgage Federal home loan banks to savings and loan funds, and by the end of 1975 their outstanding associations increased slightly in the final quar­ commitments to provide credit had risen to the ter of 1975. Most of this borrowing occurred highest level since mid-1973. late in December when deposit growth was slowing and probably was associated with an increase in mortgage activity as home buyers completed purchase transactions before the end Deposits of savings and loans of the year in order to take advantage of the and of m utual savings banks housing tax credit. Repayments of advances in Annual rate of change, per cent January more than offset the December rise. The expansion in net mortgage lending that 16 had begun earlier in the year continued in the fourth quarter. Sales of existing homes again accounted for most of the increase in mortgage debt outstanding, although sales of new homes apparently picked up further late in the year. The concentration of lending in home mortgages Q4 Ql Q2 Q3 Q4 1974___________ 1975_____________ Seasonally adjusted. Changes based on month-end figures. TABLE 3 With demands for mortgage credit remaining Net change in mortgage debt outstanding high, effective interest rates on home mortgages In billions of dollars, seasonally adjusted annual rates in the primary market declined only slightly over the fourth quarter; in early January the 1974 1975 average interest rate on new commitments for Changeconventional mortgages at savings and loan as­ Q4 Ql Q2 Q3 eQ4 sociations stood at 9.07 per cent, 15 basis points below the fourth quarter high registered in late By type of debt: Total ................ 39 34 52 56 61 October. In the secondary market, yield declines Residential . 23 21 37 41 47 Other1 ......... 16 13 15 15 14 were larger. Rates on mortgage-backed securi­ ties guaranteed by the Government National At selected institutions: Commercial banks __ 7 2 2 2 6 Mortgage Association fell 70 basis points, from Savings and loans __ 11 17 30 35 36 Mutual savings banks (2) 2 2 3 3 9.10 per cent at the end of September to 8.40 Insurance companies . 5 5 4 2 2 FNMA-GNMA ........... 7 5 3 5 5 at year-end. Adjusting to the decline in market yields, the ceiling rate on home loans insured Memo FHLB advances to S&L’s 4 -6 -9 -3 by the Federal Housing Administration or guaranteed by the Veterans Administration was 1 Includes commercial and other nonresidential as well as farm properties. reduced by lA of a percentage point in early 2Less than $500 million. eEstimated. January to a level of 8% per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments, Q4 1975 195 early in the fourth quarter, primarily in response S E C U R IT IE S M A R K E T S to the decline in money market rates. In mid- Following a record volume of new issues in the November, however, an unexpected build-up in first half of 1975, total corporate demands on the prospective calendar of new bond issues, long-term securities markets fell off substan­ and concern that credit market conditions might tially in the third and fourth quarters, though tighten, temporarily reversed the downtrend in remaining high by historical standards. Most of rates. Subsequently, interest rates continued the decline in the volume of long-term financing their downward course, and by mid-January the in the second half resulted from a drop in index of average yields on newly issued Aaa publicly offered bond issues of prime-rated in­ utility bonds stood at 8V2 per cent, the lowest dustrial corporations, which had been the major level since early 1974. Expectations of further issuers of long-term debt earlier in the year. slackening in the volume of future long-term With improved internal cash flows and debt issuance and the continued easing in money strengthened liquidity positions, many of these market conditions contributed to improved mar­ firms withdrew from the market as the year kets and still lower bond yields in January. progressed. Debt financing by lower-rated cor­ New stock offerings rose moderately in the porations, including public utilities, moderated fourth quarter, buoyed by a large offering of to a lesser extent and these firms accounted for a major utility in October. For the year 1975, an increasing share of debt issues in the third new equity issues totaled nearly $11 billion, and fourth quarters. compared with $6 billion in 1974, as share prices rose almost 50 per cent above their 1974 lows. Stock prices moved up only moderately T A B LE 4 during the fourth quarter, but in January a strong O fferings of new security issues rally in the market lifted the Dow Jones indus­ In billions of dollars, seasonally adjusted annual rates trial average to its highest level in more than 2 years. 1974 1975 In municipal markets, total offerings of State Type of issue and local government bonds declined to a sea­ Q4 Ql Q2 Q3 eQ4 sonally adjusted annual rate of $26 billion in Corporate securities: total __ 43 61 60 r44 43 the fourth quarter from a record $36 billion in Bonds ....................................... 37 52 47 r35 31 Stocks ..................................... 6 9 13 r9 12 the third. Bonds sold by the Municipal Assist­ ance Corporation to provide financial aid to New Foreign securities ..................... 2 5 4 5 8 York City accounted for approximately 13 and State and local govt, bonds 26 27 33 r36 26 16 per cent of the third- and fourth-quarter eEstimated. totals, respectively. Reflecting the easing in rRe vised. bond markets generally and the sharply reduced In addition to bond offerings by domestic volume of new tax-exempt issues, the major corporations, unusually large volumes of pub­ indexes of municipal yields fell approximately licly offered foreign bonds were sold in No­ 40 basis points from October through the end vember and December—including a $750 mil­ of December. lion offering by the International Bank for Re­ Although the immediate financing problems construction and Development and several large of New York City were alleviated by the Federal issues by Canadian provinces. Canadian bor­ and State aid measures passed in December, rowers were attracted to the United States not investors continued to be concerned with the only because of lower interest rates but also emerging problems of New York State and its because U.S. markets are better able to absorb agencies. Furthermore, the moratorium on pay­ the large size of the financings undertaken. ments of principal for New York City notes and Yields on corporate bonds began to decline the pending legislative revisions in the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin □ March 1976 TA B LE 5 bankruptcy laws raised questions about the se­ curity of debt issues of State and municipal Federal G overnm ent governments generally. As a result, most of the borrow ing and cash balance decline in municipal rates that occurred in the Quarterly totals, in billions of dollars, not seasonally adjusted fourth quarter was concentrated in highest rated issues, and the spread between high- and low­ 1975 rated obligations remained at record levels. Item 1974 1975 The Federal Government sold more than $25 Ql Q2 Q3 Q4 billion of debt in the fourth quarter, raising to Treasury $85 billion the total (net) borrowing by the financing: Budget surplus, Government in calendar year 1975. Despite the or deficit (-) -10.9 -75.2 -18.0 -12.0 1— 18.5 --26.6 exceptionally heavy volume of debt issuance in Net cash bor­ rowings, or the fourth quarter, the market for Treasury repayments (-) ................. 11.7 85.4 r19.5 16.6 *23.5 25.9 issues strengthened, and yields on short-term Other means of issues dropped more than 1 lA percentage points financing1 , , -5.3 -7.8 r—.8 -3.6 r—2.0 -1.4 Change in cash between October and January ; long-term yields balance ......... -4.4 2.5 .7 1.0 r2.9 -2.1 fell V2 of a point. Federally spon­ Demands for Government issues were en­ sored credit agencies, net hanced during the fourth quarter by the apparent cash borrow­ ings2 .............. 16.6 2.6 .1 -.2 r.9 e1.8 desire of many private investors to shift into Memo (net cash assets free of default risk because of disturb­ borrowings, ances in municipal markets and the continued seasonally adjusted an­ concerns about the quality of private credit. The nual rate): By Treasury .. 11.7 85.4 r67 r97 94 85 Federal Reserve System also was a substantial By Federally buyer of Government securities during the pe­ sponsored credit agen­ riod, acquiring more than $2.6 billion of Treas­ cies ............ 16.6 2.6 7 -3 -1 8 ury and Federal agency obligations in the course 1 Checks issued less checks paid, outlays of off-budget Fed­ of its open market operations. In the year 1975 eral agencies, accrued items, and other transactions. the System increased its outright holdings of 2 Includes debt of the Federal Home Loan Mortgage Cor­ poration, Federal home loan banks, Federal land banks, Federal Treasury securities by more than $5.7 billion, intermediate credit banks, banks for cooperatives, Federal as it purchased $6.2 billion (net) of notes and National Mortgage Association (including discount notes and securities guaranteed by the Government National Mortgage bonds and sold $0.5 billion (net) of bills; in Association), and Farm Credit Banks. addition, outright holdings of Federal agency e Estimated. r Revised. issues increased by $1.6 billion. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

197 Survey of Finance Companies, 1975 The Federal Reserve System at 5-year intervals sion that had depressed greatly the demands for surveys finance companies that supply special­ both business and consumer credit. The midized short- and intermediate-term financing to 1970 survey fell in the middle of a much shorter businesses and consumers. This article summa­ and less severe economic downturn. rizes the results of the most recent survey, which The effects of the recent recession may ac­ covered about 3,400 companies.1 count for the slower rate of growth in receiv­ The purpose of the 1975 survey was to estab­ ables held by finance companies over the lish benchmark data for regularly published 1970-75 interval relative to the 1965-70 period. series on consumer and business credit and to At the end of June 1975, total gross receivables generate information on the composition of loan outstanding at finance companies were 51 per portfolios of finance companies and their major cent larger than at mid-year 1970, whereas these sources of financing.2 Whereas the survey receivables in the previous 5-year span had allows some perspective regarding the develop­ increased by 61 per cent. ment over time of the finance company industry, The recent recession also may have contrib­ data are as of a single day—June 30—and, uted to the slower rate at which companies therefore, the results are subject to the large extended their activities into the newer con­ amount of variation typical of single-date sumer and business credit areas where finance samples. companies had shown their most significant The survey results are strongly influenced by growth in the previous 5-year interval. In addi­ general economic conditions just before the tion, general credit market conditions were survey. For instance, the 1975 survey was taken probably a major factor in explaining the appre­ toward the beginning of an economic recovery ciably lower proportion of short-term debt in following a lengthy and severe economic reces­ finance company balance sheets in mid-1975, relative to mid-1970. Since late 1974, finance companies had been issuing record amounts of N ote.—This report was written by Evelyn M. Hurley of the Board’s Division of Research and Statistics. In long-term debt, rebuilding liquidity, and fund­ particular, Erling Thoresen, Jean Davis, Edith Collis, ing short-term borrowing incurred during the and other members of the Divisions of Research and tight money period of 1973-74. In contrast, the Statistics and Data Processing helped Mrs. Hurley to conduct the survey and prepare the report. The survey 1970 survey—conducted at an earlier stage of also was conducted with the cooperation and assistance the financing cycle—showed the industry with of the Federal Reserve Banks and of industry trade historically large amounts of short-term debt, associations. which companies had used as a source of fi­ 1 Previous Federal Reserve surveys of finance compa­ nies were made on June 30 of 1955, 1960, 1965, and nancing so as to avoid locking themselves into 1970; articles describing these surveys were published long-term debt at then prevailing high interest in the Federal Reserve Bulletin for April 1957, Oc­ rates (see chart on following page). tober 1961, April 1967, and November 1972, respec­ tively. 2 The monthly consumer and business credit statistics for finance companies regularly appearing in the Board statistical releases G.19 and G.20 will be revised back D IV E R S IF IC A T IO N O F through July 1970 as soon as possible. Partial data from these revisions cannot be made available prior to release F IN A N C E C O M P A N Y A C T IV IT IE S of complete historical series. An announcement will The 1975 survey indicated a slower but contin­ appear in both releases at the time the revised historical data become available. uing trend of finance companies to move into Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin □ March 1976 Interest rates affecting tance, as it had in the previous period. This finance com panies’ decisions on borrowing continued growth may be the result of an effort January 1969-June 1975 by businesses to reduce their capital spending, Per cent per annum to limit the expansion of balance sheet debt, and to gain special tax advantages. As business credit increased in importance, there was a corresponding decrease in the share of consumer credit—from 56 per cent of total finance company receivables in 1970 to about 50 per cent in 1975 (Table la). This decline paralleled the over-all erosion of the position of finance companies in the consumer credit market. The finance company share of that market dropped from 33 per cent in 1970 to approximately 28 per cent in 1975, reflecting a continued increase in competition from other financial intermediaries—largely credit unions and commercial banks. In addition, this smaller market share may have resulted from finance company efforts to diversify out of consumer financing during a period when unemployment rose sharply and real personal income declined, Prime rate is the predominant rate quoted by a majority of banks to large businesses. Directly placed finance company in order to satisfy increased demands for types paper rate is monthly average of daily rates. Moody’s corporate of business financing such as leasing that are bonds are monthly averages of weekly figures. particularly favored by firms during periods of areas such as financing of revolving credit, rapidly rising inflation, high long-term interest second mortgages, mobile homes, and leasing, rates, and declining profits. and out of the financing of passenger cars. These Within the consumer finance area, personal diversification moves, on balance, have in­ loans remained the most important type of con­ creased the relative importance of business sumer receivable outstanding at finance compa­ credit at the expense of consumer credit. nies, accounting for 39 per cent of the total Lending to business accounted for 46 per cent consumer credit portfolio of these companies of gross finance company receivables in mid- (Table lb). Nonautomotive retail credit— 1975, up from 40 per cent in 1970 (Table la). including revolving credit, which has shown Of total business receivables, paper—both very rapid growth—was the second most im­ wholesale and retail—secured by durable goods portant consumer receivable, displacing retail remained the dominant type.3 But wholesale passenger car paper. The drop in automotive paper, particularly that associated with automo­ credit to third in relative importance was asso­ bile financing, declined considerably. Leasing, ciated with a secular decline in the position of on the other hand, grew significantly in impor­ finance companies as lenders in the passenger car field as well as cyclically weak auto sales in 1974 and 1975. Mobile home financing in­ 3 Includes: transactions between manufacturers and creased slightly as a share of consumer receiv­ dealers secured by passenger cars and commercial ve­ ables despite a recession in the housing market. hicles, mobile homes, passenger car trailers, motor Monthly statistics for consumer credit had homes, boats, airplanes, helicopters, business, indus­ trial, and farm equipment; other wholesale operations shown rapid growth in such financing from not elsewhere classified; and retail credit arising from mid-1970 through 1973, but little change in the sale (or purchase) of business, industrial, and farm mobile home credit outstanding was evidenced equipment, and commercial vehicles (including fleet sales). from the end of 1973 to mid-1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Finance Companies, 1975 199 TABLE 1 Gross receivables at finance companies Amount Percentage change Share of total (in billions of dollars) between surveys (in per cent) Item Mid-1970 Mid-1975 1965-70 1970-75 Mid-1970 Mid-1975 a. Gross receivables Consumer 31.8 42.8 42 35 56 50 Business . 23.0 39.3 78 71 40 46 Other ....... 2.3 3.9 1,107 69 4 4 Total 57.1 86.0 61 51 100 100 b. Consumer receivables Passenger cars ............ 9.9 5 8 29 23 Mobile homes ............ 3.5 108 49 7 8 Other consumer goods1 12.6 101 62 25 30 Revolving credit ... 5.8 n.a. n.a. n.a. n.a. Other1 ....................... 6.9 n.a. n.a. n.a. n.a. Personal cash loans ... 16.7 42 35 39 39 Secured by second mortgages ............ 1.9 n.a. n.a. n.a. n.a. Other ......................... 14.8 n.a. n.a. n.a. n.a. Total ................... 42.8 42 35 100 100 c. Business receivables Wholesale ..................... 10.9 76 47 33 28 Retail ............................ 11.1 63 69 29 28 Leasing ......................... 8.1 352 112 17 21 Other .............................. 9.2 34 78 22 23 Commercial accounts receivable ............ 3.4 41 134 6 8 Factored accounts .. 1.4 82 -5 6 4 Advances to factored clients ................... .2 n.a. n.a. n.a. 1 Miscellaneous ......... 4.2 14 88 10 10 Total ................... 39.3 78 71 100 100 1 Includes home improvement loans not shown separately, Note.—Figures may not add to totals due to rounding. n.a. Not available debt a decade earlier (Table 2 and Appendix S O U R C E S O F Table 5). At mid-1970, though, short-term ob­ F IN A N C IN G A T M ID -1975 ligations constituted almost two-thirds of total Finance companies traditionally operate on a debt, as finance companies were reluctant to relatively narrow capital base, relying primarily borrow long term at the relatively high rates that on borrowing as a source of funds. As in pre­ prevailed during the 1969-70 credit “crunch.” vious surveys, stockholders’ equity represented Accordingly, the rate of growth in short-term about one-sixth of total finance company liabili­ debt of finance companies over the 5 years to ties and capital in mid-1975 (Appendix Table mid-1975—almost three-fourths of which was 5). in the form of commercial paper—was notably The bulk of finance company debt is usually slower than in the previous 5-year period (Table short term, matching the relatively short ma­ 2). turities on the asset side of the balance sheet. Commercial paper—unsecured short-term In mid-1975 short-term debt accounted for promissory notes—has been the dominant slightly more than half of total debt, about in short-term liability of finance companies since line with the mix of short-term and long-term the I960’s. The greatest growth in commercial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin □ March 1976 paper as a source of funds for finance companies TABLE 3 came after the tight money period of 1966, when Finance company survey respondents many companies entered the market for the first reporting commercial paper liabilities, time as a means of hedging against the possi­ midyears 1970 and 1975 bility of a curtailment in bank credit lines. By mid-1975, with heightened investor concern Number of companies over the quality of paper, the number of com­ Size of company panies reporting outstanding commercial paper (consumer and business Issuing com­ In size loans outstanding, in mercial paper category had dropped to 128 from 138 at the time of thousands of dollars) the 1970 survey. 1970 1975 1970 1975 Because commercial paper is unsecured, only large, well-known firms can sell these notes 100,000 and over ........... 54 67 58 88 25,000-99,999 ............ 44 34 77 102 readily in the open market. As a result, 67 firms, 5,000-24,999 ............ 26 19 112 204 each reporting receivables of $100 million and 2,500-4,999 ................ 14 7 128 162 1,000-2,499 ................ 1 271 338 over, accounted for 97 per cent of the finance 500-999 ................... 424 415 250-499 ................... 511 563 company paper outstanding at the end of June 100-249 .................... 554 641 Under 100 ....................... 826 863 1975 (Table 3). The bulk of this paper—91 per cent in mid-1975—is sold directly by the issuing Total number ................ 138 128 2,961 3,376 company to the lender, usually at a lower cost than that for bank credit. Selling directly, how­ ever, requires a company to set up and maintain C O N C E N T R A T IO N O F a well-trained marketing department. Selling R E C E IV A B L E S , indirectly through dealers usually is the method used by issuers with only seasonal needs for D E B T , A N D E Q U IT Y funds or with a name not well enough known Although the number of finance companies in to sell without dealer contacts. In general, such 1975 increased in all size classes over the num­ paper carries a somewhat higher interest yield ber reported in 1970, the concentration of ac­ than paper placed directly, and in addition, the tivity in the larger firms was not significantly issuer always pays Vs of a percentage point to altered (Appendix Table 6). In the latest survey, the dealer for his services. businesses with $25 million and over in receiv­ ables constituted only 6 per cent of the number TABLE 2 of all finance companies; yet these firms held 94 per cent of the value of all consumer receiv­ Finance company debt, mid-1975 survey ables and 97 per cent of the value of business receivables. In contrast, firms with less than $5 Percentage Share of change total debt million in receivables made up 88 per cent of Debt between (in Type of debt outstanding surveys per cent) the number of all domestic finance companies, (in billions but these smaller companies held only 3 per cent of dollars) 1965- 1970- Mid- Mid- of the value of all consumer receivables and 1 70 75 1970 1975 per cent of the value of business receivables. Long-term ............ 29.7 27 81 36 45 In the most recent 5-year period, the larger Short-term1 ........... 36.6 101 24 64 55 companies—with receivables of $25 million and Bank .................. 7.9 24 20 14 12 Commercial more—continued to move toward diversifica­ paper ......... 25.9 147 17 48 39 Directly placed 23.7 151 23 42 36 tion of receivables portfolios. The smaller com­ Dealer placed 2.2 125 -22 6 3 panies—with receivables of less than $5 mil­ Total ............ 66.4 67 44 100 100 lion—remained highly concentrated in the con­ 1 Includes short-term debt not elsewhere classified and not sumer credit area, particularly in personal cash shown separately. Note.—Figures may not add to totals due to rounding. loans. What little business credit was held by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Finance Companies, 1975 201 the smaller firms tended to be in the older types bility to long-term capital markets. With a of business credit such as factoring, rather than smaller degree of diversification and greater in fast-growing areas like leasing. reliance on short-term financing, the smaller As for sources of funds, the larger companies firms also remained less highly leveraged than sharply reduced short-term debt relative to total their larger counterparts. The equity of the debt (Appendix Table 7). The smaller firms smaller companies stayed at almost one-third of reported no change in the maturity distribution their total liabilities and capital, whereas the of their debt, possibly indicating that less well- equity of the larger companies remained below known borrowers do not have ready accessi­ one-sixth. T E C H N IC A L N O T E The 1975 Survey of Finance Companies was de­ consolidated recorded operations of their affiliated signed to collect data on the major assets and U.S. finance companies including the parent fi­ liabilities of finance companies engaged in making nance company and its domestic subsidiaries short- and intermediate-term instalment loans to (whether wholly or partly owned) engaged in do­ consumers and/or businesses. In the survey a fi­ mestic consumer and/or business financing activi­ nance company was defined as a company (ex­ ties. Excluded from the consolidation were the cluding commercial banks, credit unions, mort­ operations of all domestic nonfinance company gage banking firms, mutual savings banks, and affiliates and subsidiaries and all foreign compa­ savings and loan associations) in which the largest nies.2 Finance company branches and subsidiary portion of its assets were in one or more of the finance companies were asked only to give the following kinds of receivables: parent finance company’s name. 1. Sales receivables—instalment paper arising The mailing list for the 1975 survey was derived from retail sales of passenger cars and mobile from various sources: the 1970 survey mailing list, homes; from other consumer goods, such as gen­ trade association rosters, trade journals, newspa­ eral merchandise, apparel, furniture and household pers, and information on new businesses from the appliances, boats and planes, trailers not usable Department of Health, Education and Welfare. as homes, motorcycles, and motor scooters; and/or Pre-survey questionnaires were mailed to 8,425 from outlays for home improvements not secured names appearing on the mailing list. Companies by real estate. that responded to the questionnaire with informa­ 2. Personal cash loans to individuals and fami­ tion that showed that they were out of business, lies—unsecured cash loans or cash loans secured not a finance company, or were a subsidiary of by life insurance policies, automobiles already a finance company were removed from the list. paid for, and other collateral. Survey forms were mailed to the remaining 5,458 3. Short- and intermediate-term business re­ names, and a follow-up request was sent to com­ ceivables—loans on commercial accounts receiv­ panies whose response had not been received 2 able, inventory loans, factoring of commercial months after the first mailing. Special efforts were accounts receivable, leasing, retail instalment sales made to obtain the reports of large companies, (or purchases) of commercial, industrial, and farm including virtually all companies with total re­ equipment and commercial vehicles, and whole­ ceivables of $100 million or more. sale financing of consumer and business goods.1 The number of survey forms originally mailed Finance companies were requested to report the and the major categories into which the responses fell are shown in the following table: 1For a detailed description of these various types of short- and intermediate-term business receivables see 2 A domestic company was defined in the survey as “Business Financing by Business Finance Companies” one claiming domicile in one of the 50 States or the in the Federal Reserve Bulletin, October 1968. District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin □ March 1976 dures gave a distribution of nonrespondents as Percentage follows: Number distribution Forms of of forms companies mailed Per cent Within the scope of the survey ..............................58.0 Total mailed: ....................................... 5,458 100.0 Not a finance company .............................................. 6.4 Returned ............................................ 2,818 51.6 Finance company subsidiary or branch of Usable and in survey .................. 1,846 33.8 reporting company .................................................. 6.1 Out of business ............................................................ 6.4 Not usable ..................................... 972 17.8 Could not be located ..................................................19.7 Not a finance company ......... (173) (3.2) Refusal to answer ......................................................... 1.9 Finance company subsidiary or Nonresponse to all requests ..................................... 1.5 branch of reporting com­ pany.......................................... (106) (1-9) Out of business ....................... (293) (5.4) Information about the approximate size of total Postal return ............................ (326) (6.0) receivables and the types of receivables held by Other ........................................... (74) (1.4) the 58 per cent of nonresponding companies that Not returned ..................................... 2,640 48.4 were within the scope of the survey was used to weight the survey reports from responding com­ In order to obtain estimates of assets and liabil­ panies to obtain the detailed assets and liabilities ities for the approximately 2,600 companies that for all finance companies as shown in this report. did not return survey forms, a 20 per cent sample The heavy concentration of receivables in a few of nonrespondents was chosen. Of this sample 193 large companies makes the dollar aggregates rea­ had returned pre-survey questionnaires with usable sonably accurate estimates of the amount and type information about the size and nature of their of financing underwritten by the finance company business. A subsample of the remaining companies industry. As is apparent, less confidence can be in the nonrespondent sample was sent to the 12 placed in the estimates of the number of companies Federal Reserve Banks for a special follow-up in the smaller size classes and, in particular, in using the pre-survey questionnaire. These proce­ changes in these numbers from survey to survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Finance Companies, 1975 203 APPENDIX TABLES 1. Assets and liabilities outstanding at finance companies by size of receivables, June 30, 1975 In millions of dollars Size of company (in thousands of dollars of short- and intermediate-term loans outstanding) Balance sheet item Total 100,000 25,GOO- 5,GOO- 2,500- 1,000- 500- 250- 1 GO- Under and over 99, 999 24, 999 4,999 2,499 999 499 249 100 Assets Consumer receivables.......................................... 42,760 37,378 2,712 1,253 419 416 268 181 93 40 Retail passenger car paper............................. 9,938 9,351 290 91 53 70 49 19 9 5 Mobile homes................................................... 3,461 3,247 170 30 2 8 2 1 1 Revolving consumer instalment credit......... 5,752 5,304 395 36 . 14 1 1 Personal cash loans.......................................... 16,715 13,122 1,661 895 312 279 188 147 78 33 Loans secured by second mortgages 1,946 1,064 449 264 62 58 25 18 5 1 Other............................................................... 14,769 12,058 1,213 631 250 221 164 129 72 31 All other consumer instalment loans........... 6,895 6,354 196 200 52 45 28 13 5 2 Business receivables............................................. 39,286 35,930 2,148 904 147 99 25 20 9 4 Wholesale paper................................................. 10,945 10,297 532 60 24 19 8 4 1 1 Automobiles................................................... 7,713 7,632 58 13 4 2 3 1 Other consumer goods................................. 1,273 1,031 193 26 10 6 3 2 All other........................................................... 1,960 1,634 280 21 11 10 1 2 Retail paper......................................................... 11,067 10,558 340 122 17 19 4 3 Commercial vehicles...................................... 5,012 4,966 5 22 6 7 3 1 Business, industrial, and farm equipment. 6,055 5,592 335 100 11 11 1 2 Lease paper.......................................................... 8,065 7,575 293 151 31 7 5 1 Auto paper....................................................... 2,343 2,297 23 18 3 1 Business, industrial, and farm equipment. 3,950 3,562 243 106 30 4 2 All other........................................................... 1,772 1,716 26 28 . 2 Other business credit......................................... 9,208 7,500 983 572 75 55 9 11 Loans on commercial accounts receivable. 3,388 2,701 309 303 34 34 4 3 Factored accounts receivable....................... 1,400 1,012 326 30 15 12 3 1 Advances to factored clients....................... 203 138 47 17 1 AH other receivables...................................... 4,218 3,649 301 239 9 9 2 6 1 2 Other receivables.............................................. 3,948 3,748 127 37 9 15 4 3 1 Total receivables—gross....................................... 85,994 77,056 4,986 2,195 575 530 298 205 105 45 Less: reserves for unearned income............... 7,684 6,831 448 230 60 53 31 21 8 2 Less: reserves for losses.................................... 1,623 1,411 100 58 18 17 8 7 3 1 Total receivables—net........................................... 76,687 68,814 4,438 1,906 496 460 259 177 94 42 Cash and non-interest-bearing deposits............. 2,667 2,224 267 98 25 23 12 9 5 5 Time deposits........................................................... 202 111 37 11 6 18 10 4 2 2 Other loans and investments................................ 6,745 6,220 296 81 26 78 14 13 9 7 U.S. government securities.............................. 63 36 21 2 . 2 1 Other marketable securities.............................. 683 611 36 4 4 18 4 2 3 All other loans and investments...................... 5,998 5,573 239 75 22 58 9 11 6 All other assets........................................................ 2,416 1,929 272 97 20 41 22 15 12 Total assets—net........................................ 88,716 79,299 5,310 2,193 573 620 317 219 122 64 Liabilities and capital Loans and notes payable to banks..................... 8,617 5,829 1,485 783 207 175 73 35 22 7 Short-term............................................................ 7,900 5,518 1,351 654 161 123 51 24 14 4 Long-term............................................................. 718 312 134 130 46 52 22 11 7 3 Commercial paper................................................... 25,905 25,167 632 85 19 1 Directly placed.................................................... 23,686 23,360 247 59 19 1 Dealer placed....................................................... 2,218 1,807 385 26 . Other short-term debt............................................ 2,815 1,842 446 351 57 51 30 22 9 7 Deposit liabilities and thrift certificates............. 1,480 834 413 119 45 44 16 6 2 Other current liabilities......................................... 3,113 2,497 463 67 19 25 24 11 4 2 Other long-term senior debt................................ 23,404 22,614 530 119 30 59 21 19 8 3 Long-term subordinated debt.............................. 5,609 4,875 410 173 56 53 22 17 2 1 All other liabilities................................................. 3,823 3,600 60 71 30 29 13 9 9 3 Capital, surplus, and undivided profits............. 13,951 12,039 872 423 111 182 119 100 67 39 Total liabilities, capital, and surplus.. . . 88,716 79,299 5,310 2,193 573 620 317 219 122 64 Memoranda: Short-term debt................................................... 36,620 32,527 2,428 1,090 238 176 81 47 23 11 Long-term debt................................................... 29,730 27,801 1,074 422 131 165 64 47 18 8 Total debt..................................................... 66,350 60,328 3,503 1,512 369 340 146 94 41 19 Number of companies........................................... 3,376 88 102 204 162 338 415 563 641 863 For notes to Appendix Tables 1-7, see p. 207. 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204 Federal Reserve Bulletin □ March 1976 2. Direct loans made and paper purchased by finance companies during June 1975 In millions of dollars Size of company (in thousands of dollars of short- and intermediate-term loans outstanding) Type of loan Total 100,000 25,GOO- 5,GOO- 2,500- 1,000- 500- 250- 1 GO- Under and over 99, 999 24, 999 4,999 2,499 999 499 249 100 Consumer receivables.................................. 3,893 3,368 227 130 43 52 31 23 13 8 Retail passenger car paper..................... 849 776 43 10 4 8 4 2 1 Mobile homes........................................... 70 66 2 1 Revolving consumer instalment credit. 752 729 14 6 2 Personal cash loans.................................. 1,592 1,216 149 96 33 37 24 19 11 7 Loans secured by second mortgages. 134 78 24 14 6 7 2 2 Other....................................................... 1,458 1,138 124 82 27 29 22 17 11 7 All other consumer instalment loans.. 631 581 18 16 5 5 3 2 Business receivables................................................ 8,699 7,650 570 361 61 41 8 6 2 2 Wholesale paper................................................. 4,028 3,918 84 11 8 3 2 2 Automobiles.................................................... 3,327 3,310 10 3 2 1 1 Other consumer goods.................................. 326 262 48 6 5 2 1 2 All other........................................................... 375 345 26 2 1 1 Retail paper......................................................... 820 794 15 6 2 2 1 Commercial vehicles...................................... 341 336 1 2 1 1 Business, industrial, and farm equipment. . 479 459 14 5 1 1 Lease paper.......................................................... 507 466 27 11 2 1 Auto paper....................................................... 270 258 9 3 Business, industrial, and farm equipment. . 137 112 16 5 2 All other........................................................... 101 95 2 4 Other business credit.......................................... 3,343 2,472 445 333 48 35 4 3 1 1 1,849 1.455 147 200 18 25 2 1 Factored accounts receivable. 983 707 229 20 14 9 2 1 1 Advances to factored clients . 150 92 47 10 1 All other receivables............... 362 218 23 112 6 1 1 1 Other receivables......................... 655 642 6 3 2 Total receivables—gross. 13,248 11,660 803 493 103 95 39 29 15 10 3. Consumer receivables outstanding at finance companies—midyears 1965, 1970, and 1975 Amount outstanding Percentage of total consumer receivables Type of consumer receivables In millions of dollars Percentage change 1965 1970 1975 1965-70 1970-75 1970 1975 Passenger cars..................................................... 8,822 9,250 9,938 5 8 29 23 Mobile homes..................................................... 1,120 2,327 3,461 108 49 7 8 Other consumer goods1.................................... 3,720 7,816 12,647 101 62 25 30 Personal cash loans............................................ 8,695 12,380 16,715 42 35 39 39 Total consumer credit........................... 22,357 31,773 42,760 42 35 100 100 1 Consists of revolving consumer instalment credit and all other retail consumer goods paper. For notes to Appendix Tables 1-7, see p. 207. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Finance Companies, 1975 205 4. Business receivables outstanding at finance com panies— m idyears 1965, 1970, and 1975 Amount outstanding Percentage of total business receivables Type of business receivable In millions of dollars Percentage change 1965 1970 1975 1965-70 1970-75 1970 1975 Wholesale paper.............................................................................. 4,239 7,468 10,945 76 47 33 28 Automobiles................................................................................. 2,897 5,053 7,713 74 53 22 20 Other consumer goods............................................................... 318 676 1,273 113 88 3 3 All other........................................................................................ 1,024 1,739 1,960 70 13 8 5 Retail paper...................................................................................... 4,033 6,563 11,067 63 69 29 28 Commercial vehicles................................................................... 1,614 3,090 5,012 92 62 13 13 Business, industrial, and farm equipment............................. 2,419 3,473 6,055 44 74 15 15 Lease paper.................................................................................. 841 3,802 8,065 352 112 17 21 B A u u s t i o n e p s a s p , e in r d ... u .. s .. t . r .. i . a .. l . , . .. a .. n .. d .. .. f . a .. r .. m .... . e .. q ... u .. i . p ... m ... e .. n ... t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \ gig 2 1 , , 2 4 9 0 9 3 2 3 , , 3 9 4 5 3 0 J \ 354 6 7 7 2 1 6 0 1 6 0 All other................................................................................... 25 99 1,772 296 1,690 * 5 Other business credit.................................................................. 3,817 5,166 9,208 34 78 22 23 Loans on commercial accounts receivable........................ 1,031 1,449 3,388 41 134 6 9 A Fa d c v t a o n re c d es a t c o c o fa u c n t t o s r r e e d c e c i l v ie a n b t l s e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 60 00 7 J \ 1 All 1,4 2 0 0 0 3 j \ oZ Q7 (OL 4 * All other.................................................................................... 1,978 2,245 4,218 14 88 10 11 Total business receivables.................................................. 12,931 22,999 39,286 78 71 100 100 5. Liabilities and capital outstanding at finance com panies— m idyears 1965, 1970, and 1975 Amount outstanding Percentage of total liabilities and capital Type of liability In millions of dollars Percentage change 1965 1970 1975 1965-70 1970-75 1965 1970 1975 Bank loans.................................................................. 5,559 7,551 8,617 36 14 15 13 10 Short-term............................................................... 5,290 6,581 7,900 24 20 15 11 9 Long-term............................................................... 269 969 718 260 -26 1 2 1 Commercial paper.................................................... 8,933 22,073 25,905 147 17 25 36 29 Directly placed....................................................... 7,677 19,247 23,686 151 23 21 32 27 Dealer placed......................................................... 1,256 2,826 2,218 125 -22 3 5 3 Other short-term notes............................................ 547 975 2,815 78 189 2 2 3 Deposit liabilities....................................................... 707 639 1,480 -10 132 2 1 2 Other current liabilities............................................ 2,209 3,468 3,113 57 -10 6 6 4 Other long-term senior debt................................... 9,159 11,154 23,404 22 110 25 18 26 Subordinated debentures......................................... 3,497 4,347 5,609 24 29 10 7 6 All other liabilities.................................................... 220 424 3,823 93 802 1 1 4 Capital and surplus................................................... 5,443 9,947 13,951 83 40 15 16 16 36,275 60,577 88,716 67 47 100 100 100 Memo : Short-term debt..................................................... 14,741 29,629 36,620 101 24 41 49 41 Long-term debt..................................................... 12,954 16,470 29,730 27 81 36 27 34 Total debt....................................................... 27,695 46,100 66,350 67 44 76 76 75 For notes to Appendix Tables 1-7, see p. 207. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Federal Reserve Bulletin □ March 1976 6 . Receivables outstanding at finance com panies— m idyears 1970 and 1975 Size of company (gross receivables outstanding, in millions of dollars) Type of receivable All companies , 25 and over 5 to 25 Under 5 1970 1975 1970 1975 1970 1975 1970 1975 Amount outstanding,in millionsof dollars Consumer receivables.............................................. 31,773 42.760 29,726 40,090 856 1,253 1,191 1,417 Retail passenger car paper.................................. 9,250 9,938 8,892 9,641 124 91 234 205 Mobile homes........................................................ 2,327 3,461 2,302 3,417 7 30 18 14 Other retail consumer goods paper.................. 7,816 12,647 7,482 12,249 162 236 172 161 Revolving credit................................................ n.a. 5,752 n.a. 5,699 n.a. 36 n.a. 16 Other................................................................... n.a. 6,895 n.a. 6,550 n.a. 200 n.a. 145 Personal cash loans.............................................. 12,380 16,715 11,051 14,783 564 895 765 1,037 Secured by second mortgages......................... n.a. 1,946 n.a. 1,513 n.a. 264 n.a. 169 Other................................................................... n.a. 14,769 n.a. 13,271 n.a. 631 n.a. 867 Business receivables.................................................. 22,999 39,286 22,429 38,078 305 904 265 304 Wholesale paper.................................................... 7,468 10,945 7,391 10,829 45 60 32 57 Automobiles....................................................... 5,053 7,713 5,036 7,690 5 13 12 10 Other consumer goods.................................... 676 1,273 650 1,224 19 26 7 22 All other............................................................. 1,739 1,960 1,705 1,914 21 21 13 25 Retail paper........................................................... 6,563 11,067 6,423 10,898 55 122 85 47 Commercial vehicles........................................ 3,090 5,012 3,048 4,971 12 22 30 18 Business, industrial, and farm equipment.. 3,473 6,055 3,373 5,927 43 100 57 28 Lease paper............................................................ 3,802 8,065 3,706 7,868 73 151 23 46 Auto paper......................................................... 1,403 2,343 1,393 2,320 5 18 5 4 Business, industrial, and farm equipment. . 2,299 3,950 2,240 3,805 43 106 16 38 All other............................................................. 99 1,772 72 1,742 25 28 2 3 Other business credit................................................................ 5,166 9,208 4,911 8,483 131 572 124 155 Loans on commercial accounts receivable.. 1,449 3,388 1,358 3,010 45 303 46 75 A Fa d c v t a o n re c d es a t c o c o f u ac n t t o s r r e e d c e c i l v ie a n b t l s e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I/ 11 ? A!l Ll 1 ' . 2 4 0 0 3 0 \ / 1I , T4“7Z 7/ 1,3 1 3 8 8 5 / \ Zo 30 * / \ 11 7/ 3 1 2 8 All other............................................................. 2,245 4,218 2,125 3,950 58 239 62 29 Other receivables....................................................... 2,342 3,948 2,275 3,875 19 37 48 36 Total receivables—gross.............................. 57,113 85,994 54,430 82,042 1,180 2,195 1,504 1,758 2,961 3,376 135 190 112 204 2,714 2,982 7. Liabilities and capital outstanding at finance com panies— m idyears 1970 and 1975 Size of company (gross receivables outstanding, in millions of dollars) Type of liability All companies 25 and over 5 to 25 Under 5 1970 1975 1970 1975 1970 1975 1970 1975 Amount outstanding,in millionsof dollars Bank loans.................................................................. 7,551 8,617 6,538 7,314 542 783 471 519 Short-term............................................................... 6,581 7,900 5,752 6,869 483 654 345 377 Long-term............................................................... 969 718 '786 446 59 130 124 141 Commercial paper..................................................... 22,073 25,905 22,014 25,799 40 85 35 20 Directly placed....................................................... 19,247 23,686 19,205 23,607 27 59 29 20 Dealer placed......................................................... 2,826 2,218 2,809 2,192 14 26 5 * Other short-term notes............................................ 975 2,815 800 2,288 45 351 114 176 Deposit liabilities....................................................... 639 1,480 500 1,247 59 119 80 113 Other current liabilities............................................ 3,468 3.113 3,315 2,960 96 67 57 85 Other long-term senior debt................................... 11,154 23,404 10,904 23,144 132 119 118 140 Subordinated debentures......................................... 4,347 5,609 4,095 5,285 122 173 130 151 All other liabilities.................................................... 424 3,823 328 3,660 31 71 65 93 Capital and surplus................................................... 9,947 13,951 9,151 12,911 278 423 518 618 Total liabilities and surplus......................... 60,577 88,716 57,644 84,609 1,346 2,193 1,587 1,915 Memo: Short-term debt..................................................... 29,629 36,620 28,566 34,955 568 1,090 495 576 Long-term debt...................................................... 16,470 29,730 15,785 28,875 313 422 373 433 Total debt....................................................... 46,099 66,350 44,351 63,831 881 1,512 868 1,009 For notes to Appendix Tables 1-7, see p. 207. 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Survey of Finance Companies, 1975 207 NOTES TO APPENDIX TABLES 1. Receivables include direct loans and paper purchased from money security agreements) on the machinery or equipment. manufacturers, wholesalers, and retailers before deduction of It excludes lease paper, loans on commercial vehicles, and reserves for unearned income and losses. They include bulk loans secured by real estate mortgages. purchases of paper from vendors. 12. Lease paper on automobiles includes paper arising from 2. Retail passenger car paper consists of credit arising from “finance” leases as well as “pure” or “operating” leases or retail sales of passenger cars to consumers. It excludes lease “rentals” on passenger cars and commercial land vehicles. paper, fleet sales, personal cash loans secured by automobiles 13. Lease paper on business, industrial, and farm equipment already paid for, and loans to finance the purchase of commer­ includes paper arising from “finance” leases as well as “pure” cial vehicles and farm equipment. or “operating” leases or “rentals” on income-producing busi­ 3. Mobile homes credit consists of paper arising from the ness, industrial, and farm equipment. retail sale of complete dwelling units built on a chassis and 14. All other lease paper consists of paper arising from capable at time of initial purchase of being towed over the the leasing of mobile homes and passenger car trailers, motor highway by truck but not by car. It excludes paper secured homes, boats, airplanes, and helicopters as well as from the by real estate, lease paper, and paper arising from retail sale leasing of furniture, appliances, television sets, etc. It includes of travel trailers. any lease paper not elsewhere classified. It includes paper 4. Revolving consumer instalment credit consists of credit arising from “finance” leases as well as “pure” or “operat­ extended on a credit-line basis. A single contract governs ing” leases or “rentals.” multiple use of the account. Generally, credit extensions can 15. Loans on commercial accounts receivable consist of be made at consumer discretion, provided that they do not loans secured by commercial accounts receivable. This cate­ cause the outstanding balance of the account to exceed a gory excludes the balances withheld from customers pending prearranged “credit limit.” collection of receivables. 5. Personal cash loans to individuals and families consist 16. Factored commercial accounts receivable include com­ of secured and unsecured loans made for household, family, mercial accounts receivable purchased from factored clients or other personal expenses. They include loans secured by less any amount due and payable to factored clients. insurance policies, automobiles already paid for, and other 17. Advances to factored clients consist of secured and collateral. They exclude loans for business purposes and redis­ unsecured advances to factored clients, not included elsewhere, counted loans. in excess of receivables purchased. All factored client balances 6. All other retail consumer goods loans consist of credit that result in a debit position are included. arising from nonrevolving credit retail sales of consumer goods 18. All other business credit includes import-export loans, other than passenger cars and mobile homes. Such goods dealer capital loans, small loans used primarily for business include general merchandise, apparel, furniture, household or farm purposes, multi-collateral loans, inventory loans, re­ appliances, etc. Also included in this category are boats, discounted receivables of other finance companies less balances airplanes, and helicopters for personal use as well as motor withheld, and all other business loans not elsewhere classified. homes and recreational camping and travel trailers not designed It excludes loans secured by real estate unless included as part as permanent housing. In addition, credit to finance alterations of a multi-collateral loan. or improvements in existing single-family properties occupied 19. All other loans and investments include the consolidated by the borrower and not secured by real estate mortgages is companies’ investment in foreign subsidiaries and affiliates and included along with auto repair loans. Lease paper is excluded. in nonconsolidated domestic companies. Nonconsolidated sub­ 7. Wholesale automotive paper consists of credit arising sidiary and affiliate company claims on the consolidated com­ from transactions between manufacturers and dealers secured panies are netted against the consolidated companies’ invest­ by passenger cars and commercial vehicles. Paper secured by ment here. Also included are real estate first mortgage invest­ mobile homes, passenger car trailers, boats, airplanes, heli­ ments and any other loans and investments not elsewhere copters, and motor homes is excluded. classified. 8. Other wholesale consumer goods paper consists of credit 20. All other assets are shown at book value. arising from wholesale loans on consumer goods other than 21. Directly placed commercial paper consists of negotiable automobiles. It includes wholesale paper on mobile homes and promissory notes of large denominations sold directly to the passenger car trailers, as well as on motor homes, boats, investor and issued for not longer than 270 days. It includes airplanes, and helicopters manufactured primarily for the con­ short-term “master” notes. sumer market. It excludes paper on business, industrial, and 22. Dealer placed commercial paper consists of negotiable farm equipment. promissory notes sold to or through commercial paper dealers 9. All other wholesale credit includes wholesale financing and issued for not longer than 270 days, and for which interest of business, industrial, and farm equipment as well as credit rates are determined in the commercial paper market. It in­ arising from any wholesale operation not listed elsewhere. cludes documented discount notes, i.e. commercial paper ac­ 10. Retail commercial vehicle paper consists of credit arising companied by an irrevocable letter of credit issued by a bank. from retail sales of commercial land vehicles to business. It 23. Long-term senior debt not elsewhere classified consists includes trucks, buses, taxicabs, truck-trailers, tractor-trailers, of unsubordinated long-term loans, notes, certificates, negotia­ and other “on the road” vehicles for which motor vehicle ble paper, or other indebtedness not classified elsewhere, licensing is required. It also includes fleet sales of passenger including that portion maturing in less than 1 year. cars. It excludes paper on business, industrial, and farm 24. Long-term subordinated debt consists of debt subordi­ equipment and lease paper. nated to other debt by terms of indenture. It includes subordi­ 11. Retail paper on business, industrial, and farm equipment nated debt maturing in less than 1 year. consists of credit arising from the retail sale to business of (or from the purchase of) business, industrial, and farm equip­ n.a. Not available. ment. It includes all “off-the-road” equipment for which motor *Less than 0.5 per cent or less than $500,000. vehicle licensing is not required. Loans may be secured by Note.—Components may not add to totals because of chattel mortgages or conditional sales contracts (purchase rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Treasury and Federal Reserve Foreign Exchange Operations This 28th joint interim report reflects the marks, adding $59.3 million equivalent to bal­ Treasury-Federal Reserve policy of making ances in August-September, and to buy $6 available additional information on foreign ex­ million of Belgian francs to hold against the change operations from time to time. The Fed­ remaining swap indebtedness outstanding since eral Reserve Bank of New York acts as agent 1971. for both the Treasury and the Federal Open By then, however, the long-brewing contro­ Market Committee of the Federal Reserve Sys­ versy on how to resolve New York City’s fiscal tem in the conduct of foreign exchange opera­ difficulties was beginning to weigh on market tions. psychology toward the dollar. Moreover, in This report was prepared by Alan R. Holmes, early October, U.S. interest rates turned down Manager, System Open Market Account, and once again amidst scattered indications that the Vice President in charge of the Foreign Func­ pace of the recovery might have slowed, while tion of the Federal Reserve Bank of New York, more favorable signs of a near-term pick-up of and by Scott E. Pardee, Deputy Manager for some European economies raised the prospect Foreign Operations of the System Open Market of a hardening of interest rates abroad. In this Account and a Vice President in the Foreign uncertain atmosphere, the dollar lost buoyancy Function of the Federal Reserve Bank of New and dollar rates dropped off sharply in sporadic York. It covers the period August 1975 through* January 1976. Previous reports have been pub­ TABLE 1 lished in the March and September Bulletins of each year beginning with September 1962. Federal Reserve reciprocal currency arrangements Following the dollar’s sharp recovery against In millions of dollars the major European currencies early last sum­ mer, during which the Federal Reserve was able Amount of to repay in full its swap drawings arising out Institution facility, Jan. 31, 1976 of operations in late 1974-early 1975, the ex­ change markets settled into better balance in Austrian National Bank ....................................... 250 August and early September. The dollar then National Bank of Belgium .................................. 1,000 Bank of Canada ..................................................... 2,000 came into renewed heavy demand in response National Bank of Denmark ................................ 250 Bank of England ................................................... 3,000 to further favorable news on the U.S. economic Bank of France ....................................................... 2,000 recovery and to expectations that interest rates German Federal Bank .......................................... 2,000 here would continue to firm ahead of interest Bank of Italy .......................................................... 3,000 Bank of Japan ......................................................... 2,000 rates in most other industrial countries, where Bank of Mexico ..................................................... *360 recovery was lagging. By September 22-23, Netherlands Banks ................................................. 500 dollar rates against major European currencies Bank of Norway ..................................................... 250 Bank of Sweden ..................................................... 300 had been bid up by some 4 to 5 per cent above Swiss National Bank ............................................ 1,400 end-of-July highs. In order to moderate the Bank for International Settlements: Swiss francs/dollars .......................................... 600 day-to-day rise, foreign central banks sold siz­ Other authorized European currencies/dollars 1,250 able amounts of dollars in their respective mar­ Total ................................................................ 120,160 kets. The Federal Reserve took the opportunity to purchase moderate amounts of German increased by $180 million effective August 29, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 209 TABLE 2 Federal R eserve System activity under its reciprocal sw ap lines In millions of dollars equivalent Drawings, or repayments (—) System System commit­ 1975 1976 commit­ Transactions with— ments, ments, Jan. 1, Jan. 31, 1975 Ql Q2 Q3 Q4 January 1976 f 16.7 13.1 1+54.0 National Bank of Belgium ........... 261.8 -29.8 -18.1 —44.7/ 252.9 Bank of France ................................ 1 1 - 4 5 5 . . 1 6 -40.5 . . . . . . 1 J J 644.1 63.4 ...1 German Federal Bank ................... 218.7 1-25.0 -487.7 —413.5 ... J f 49.0 47.3 ...1 Netherlands Bank ............................ 3.2 1 -90.6 -8.8 ... f j 152.i 2196.0 Swiss National Bank ..................... 378.5 -159.4 :::} 567.2 Bank for International Settlements (Swiss francs)................................ 600.0 600.0 Total ......................................... L,462.2 | t- 2 86 5 1 . . 0 9 -7 1 7 6 2 9 . . 7 4 —462.8 - 2 1 5 8 0 . . 1 0 - 44.7} 1,420.1 1 Amount by which the dollar countervalue of the Federal Reserve’s pre-August 1971 Belgian franc commitments, adjusted for the Belgian franc revaluation of 1971, was increased to reflect the two U.S. dollar devaluations of 1971 and 1973. 2 Amount by which the dollar countervalue of the Federal Reserve’s pre-August 1971 Swiss franc commitments was increased to take account of the two U.S. dollar devaluations of 1971 and 1973. This increase is reflected entirely in the System’s position with the Swiss National Bank because of a transfer of Swiss franc commitments from the BIS to the Swiss National Bank sufficient to keep Federal Reserve commitments to the BIS within the $600 million swap facility. Note.—Discrepancies in totals are due to rounding. bouts of selling pressure. In an effort to maintain through the year-end the dollar traded fairly order and resist the decline, several foreign narrowly. The Federal Reserve intervened on central banks entered the market as buyers of two occasions to steady the market, selling $9.1 dollars—on some days in sizable amounts. The million of marks out of balances. Otherwise, New York market also turned unsettled on oc­ the System took a number of opportunities to casion in early October, and the Federal Re­ acquire mark balances, buying some $60.6 mil­ serve, operating on 4 days between October 1 lion equivalent in the market and from corre­ through October 15, sold a total of $50.1 million spondents from October through the year-end. equivalent of marks from balances. Thereafter, Meanwhile, the heads of state of the six major the dollar leveled off around 4 to 5 per cent industrial countries meeting at Rambouillet, below late-September highs against the major France, on November 15-17, 1975, affirmed European currencies. their intention “to work for greater stability in Over subsequent weeks, dollar exchange rates underlying economic and financial conditions in still fluctuated widely on a day-to-day basis. the world economy. At the same time, our Although European central banks continued to monetary authorities will act to counter disor­ buy dollars on balance when the dollar came derly market conditions or erratic fluctuations under pressure in their markets, the New York in exchange rates.” Reports of this agreement market was generally quiet and there was no were well received in the exchanges. further need for the Federal Reserve to sell Coming into 1976, the markets were fairly foreign currencies. In fact, as the elements of optimistic toward prospects for the dollar. The a compromise solution on New York City’s United States continued to make progress finances gradually emerged, the dollar regained toward reducing inflation. Our competitive po­ some of its earlier buoyancy and firmed by 1 sition remained strong with the trade balance to 2 per cent into early December. Thereafter, still in sizable surplus. The latest economic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin □ March 1976 TABLE 3 D raw ings and repaym ents on Federal R eserve System by its sw ap partners In millions of dollars Drawings, or repayments (—) Drawings Drawings on Banks drawing on System System, 1975 1976 System, Jan. 1, Jan. 31, 1975 1976 Ql Q2 Q3 Q4 January { Bank of Italy ................................................................... 250.01 250.0 Bank of Mexico .............................................................. " 180.0 180.0 -360.0 Bank for International Settlements J 45.0 1.0 125.0 19.0 (against German marks) .......................................... \ —45.0 -1.0 -125.0 -19.0 Total ......................................................................... f 45.0 1.0 305.0 199.0 250. Oj 250.0 (-45.0 -1.0 -125.0 -379.0 indicators suggested that the slowing of the U.S. under selling pressure, including particularly the recovery in late 1975 had been only temporary French franc and the Belgian franc. These es­ and that, if anything, our recovery was more sentially speculative selling pressures were solidly based than the incipient upturns in other strongly resisted by the authorities of the re­ industrial countries. Thus, although U.S. inter­ spective countries. est rates continued to drift downward, the de­ Since the dollar figured heavily in these cline was expected to be temporary. In this flows—both as a vehicle currency for many atmosphere, consequently, the dollar was market participants and as an intervention cur­ shielded from the variety of tensions that devel­ rency for central banks—the dollar also occa­ oped in markets for other currencies in early sionally came on offer, particularly late in the 1976. month when a broader speculative demand built By that time, divergent price and productivity up for German marks, Dutch guilders, and performances among European countries had Swiss francs. By the month-end, the dollar had led many market participants to expect that slipped some 2 to 3 per cent against these exchange rate adjustments might again be nec­ currencies from early-December levels. During essary, both by those within the Economic January, to avoid a disorderly decline of dollar Community (EC) “snake” arrangement and by rates, the Federal Reserve offered marks in New other European countries whose trade is closely York on four different days, selling a total of linked to that group. Early in January, the Swiss $47.3 million equivalent. These sales were out franc came into strong demand and rose further of balances and were partly offset by $29.8 to new highs against the German mark before million of purchases from correspondents during heavy intervention by the Swiss National Bank the month. helped to steady the market. Then, in the con­ The strains on European currencies continued text of a prolonged cabinet reorganization in into February. But, after further strong official Italy, the lira came under heavy selling pressure statements that underlying economic conditions and, after extensive support operations, the did not justify any realignment of EC curren­ Bank of Italy withdrew from the market on cies, as well as sustained central bank interven­ January 21 to conserve its cash reserves. Over tion complemented by domestic monetary ac­ subsequent days the lira dropped away by 6% tions, the markets began to settle down once per cent against the German mark, and, as again by midmonth. The more effectively coor­ rumors spread that further exchange rate moves dinated intervention through late 1975-early were imminent, other currencies also came 1976 and the expanded consultations among the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 211 TABLE 4 U .S. T reasury securities, foreign currency series In millions of dollars equivalent Issues, or redemptions ( —) Out­ Out­ standing, standing, Issued to— Jan. 1, 1975 1976 Jan. 31, 1975 1976 Ql Q2 Q3 Q4 January Swiss National Bank ............................................................ 1,599.3 ... 1,599.3 Total .......................................................................... 1,599.3 ... ... ... ... 1,599.3 central banks were facilitated by various inter­ of Swiss francs in transactions with corre­ national agreements over the past year, includ­ spondents, which was held in balances against ing those among the Federal Reserve, the Ger­ the outstanding debt in that currency. man Federal Bank, and the Swiss National Bank In sum, during the August 1975-January in London in February 1975; between the U.S. 1976 period, the Federal Reserve purchased a Treasury and the French Finance Ministry in total of $240.4 million equivalent of foreign Rambouillet; and by the Interim Committee of currencies and sold $106.5 million equivalent. the International Monetary Fund (IMF) in Ja­ Operations in German marks accounted for maica in January 1976. $149.7 million equivalent of total purchases and In December the dollar countervalues of the all of the sales. The remaining purchases were Federal Reserve’s Swiss franc and Belgian franc $74.4 million of Belgian francs and $16.3 mil­ swap commitments incurred prior to August lion of Swiss francs. 1971 were adjusted upward to take into account In other operations, the swap line with the the dollar devaluations of December 1971 and Bank of Mexico was increased from $180 mil­ February 1973. At the same time, Belgian franc lion to $360 million in August. The full amount commitments were lowered to reflect the franc’s was subsequently drawn by the Bank of Mexico December 1971 revaluation. As a result, the in September and October to meet temporary dollar equivalent of outstanding indebtedness in needs and was fully liquidated prior to maturity these currencies was increased, respectively, by in December. In addition, on January 20 the $196 million to $1,167.2 million and by $54 Bank of Italy drew $250 million under its swap million to $315.8 million. Following these for­ arrangement with the Federal Reserve. mal adjustments, the Federal Reserve began to acquire modest amounts of these currencies in the market or through correspondents to make G E R M A N M A R K progress toward liquidating that debt. Specifi­ cally, in addition to the $6 million of Belgian Unlike the United States, Germany remained in francs acquired in September, the System recession at midyear, with the economy not yet bought a further $68.4 million equivalent in the responding to the expansionary fiscal and mon­ market and from a correspondent during De­ etary policies pursued since late 1974. Export cember 1975-January 1976, of which $62.9 demand was still weak as a result of the deepermillion equivalent was used to repay swap than-anticipated recession in Europe; in re­ drawings in that currency. As a result, Belgian sponse to the deteriorating economic climate at commitments were reduced to $252.9 million home, a sharp jump in the savings rate kept of francs by the end of January. In Decem- domestic demand in check. During the summer, ber-January the System acquired $16.3 million therefore, the German authorities took further Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin □ March 1976 steps to stimulate the economy. In July-August ban against the flotation of new foreign bond the federal government revealed plans for an issues in Germany. expanded public works program to begin in the Following these actions, the German mark fall, coordinated with similar programs in steadied, trading with little day-to-day fluctua­ France. In mid-August the German Federal tion until mid-September. At that point, the Bank announced its fifth cut in the discount and German Federal Bank eased monetary policy Lombard rates for the year to 4 per cent and further by reducing its discount and Lombard 5 per cent, respectively. It followed up earlier rates another V2 of a percentage point and in­ moves to release reserves by reducing require­ creasing banks’ rediscount quotas. At the same ments on nonresident deposits to the level ap­ time, however, U.S. interest rates firmed again, plicable to domestic liabilities. In addition, to and these divergent trends triggered a renewed ease the strains on German capital markets that rise of the dollar across the board. The mark resulted, at least in part, from the swollen bor­ came heavily on offer, extending its slide a rowing requirements of the German Govern­ further 4Vi per cent to a 19-month low of ment, the German Federal Bank embarked upon $0.3728 by September 23. The German Federal large open market purchases of federal bonds, Bank sold a large amount of dollars to moderate thereby injecting further liquidity into the mar­ the decline. The Federal Reserve also purchased ket. marks to add to its balances, having acquired As a results German short-term interest rates $59.3 million equivalent since early August. fell even further below those in the Euro-dollar As reports of concerted European intervention market and banks placed large amounts of funds to assure orderly markets circulated, market abroad. These outflows, reinforced by large- expectations of further sharp declines in the scale unwinding of nonresident investment in mark rate subsided. Dealers then started to cover German portfolio securities and an unfavorable the short positions that they had built up while shift of leads and lags, more than offset a the mark was weakening. Moreover, by this continuing but much reduced surplus on current time the earlier capital outflows from Germany account. Thus, market psychology shifted de­ began to taper off. German banks reduced their cidedly against the mark, and, with some placements abroad to meet growing demand for dealers moving to take up short positions, the credit at home from both the private and public German mark was pushed down by almost 10 sectors. At the same time, public authorities, per cent from June to trade around $0.3900 early taking advantage of the leeway provided by the in August. As the mark declined, the Federal easing of controls on capital inflows, began to Reserve acquired sufficient marks to repay by import funds from abroad. Thus, within days late July all remaining swap drawings on the the mark rebounded almost to the levels of early German Federal Bank incurred in market September, and this rapid turnaround inserted operations since October 1974 and, in early a note of caution in the market. August, began building up a small balance. Meanwhile, the dollar was coming on offer, Meanwhile, German capital markets re­ as dealers focused increasingly on the wide­ mained strained and long-term interest rates spread press coverage of New York City’s fiscal showed no tendency to ease in response to the difficulties and as U.S. money market rates steady drop in short-term rates. Consequently, turned down. At the same time, Germany was the German authorities moved further to provide recording a pick-up of consumer demand and assistance to these markets, while also offsetting a modest revival of foreign orders. These early some of the capital outflows, by announcing a signs of recovery, plus expectations that the relaxation of controls on foreign purchases of German Federal Bank would soon suspend its German securities. In this connection, prohibi­ support for the bond market, led many market tions on interest payments for nonresident de­ participants to anticipate an early firming of posits were eliminated and the authorities ex­ German interest rates. tended through September their recent 1-month Consequently, demand for marks was build­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 213 ing up when a sizable shift of funds out of the dollars it had taken in during October while sterling into marks as well as French francs on the Federal Reserve took the opportunity to October 1 sparked heavy bidding for marks. As purchase $24.6 million equivalent of marks to trading grew progressively more nervous, the add to balances. mark began to swing more widely and the During the rest of December, trading in marks German Federal Bank and the Federal Reserve was generally orderly and the Federal Reserve both resumed intervention to maintain orderly intervened on only two occasions. On December trading conditions. Operating on 4 days between 19, European currencies were generally bid up October 1 and October 15, the Federal Reserve against the dollar following erroneous reports sold a total of $50.1 million equivalent of marks from the Group of Ten meeting in Paris that from balances. Thereafter, although the rate the Bank for International Settlements (BIS) remained volatile and the German Federal Bank would be willing to auction IMF gold to central continued to intervene in Frankfurt, trading ac­ banks. The Federal Reserve entered the market tivity in New York was subdued and there was with modest offerings of marks, selling $6 mil­ no further need for sales of marks by the Federal lion equivalent from balances. Late in the Reserve. During periods of dollar buoyancy in month, when some large commercial purchases October, however, the System was able to pur­ of marks provoked sharp increases in the mark chase $36 million equivalent of marks for future rate in otherwise thin holiday markets, the Ger­ contingencies. By late October the mark had man Federal Bank and the Federal Reserve leveled off at around $0.3900, up 4% per cent again intervened, with the System selling $3.1 from its mid-September lows. million equivalent from balances. By November, market fears of a cumulative By the turn of the year, prospects for the decline in dollar rates had quieted. The actual German economy brightened considerably. Ev­ suspension of the German Federal Bank’s sup­ idence of recovery continued to mount, with a port program for the domestic bond market was reported gain in gross national product (GNP) taken in stride by the German capital markets, and increases in export orders. In addition, with little impact on bond yields. Progress Germany’s trade balance had widened again. toward a compromise resolution of New York Thus, when the exchanges reopened for the first City’s fiscal problems, culminating in President full day of trading on January 5, the mark was Ford’s announcement of temporary Federal aid easily pulled up in the wake of a renewed sharp to the city on November 26, reassured the rise in the Swiss franc. Following up on coordi­ markets. Moreover, the finance ministers at­ nated central bank intervention in Europe, the tending the Rambouillet summit meeting Federal Reserve sold that day $23.1 million of pledged to work for greater stability in economic marks from balances. Thereafter, in the afterand financial conditions and to act to counter math of the Jamaica agreement on monetary disorderly market conditions or erratic fluctua­ reform, trading quieted. The spot mark gradu­ tions in exchange rates. Reports of this agree­ ally settled back against the dollar through midment were generally well received in the ex­ January, with the Federal Reserve selling only changes. As a result, speculative demand for a further $3.8 million equivalent from balances marks subsided, and the mark moved down to resist a sudden rise in the mark on January toward levels of early September. 14. Otherwise, the System added $29.8 million A leveling-off of U.S. interest rates, as well equivalent to balances through purchases from as news of an eighth consecutive large U.S. correspondents. trade surplus in October and of a smaller-than- Late in January, however, divergent pressures expected German surplus for that month, helped among the European currencies, enveloping first sustain the decline. Thus, by mid-December the the Italian lira, then the French franc and the mark had dropped back 3 per cent from its Belgian franc, began to spill over into the mar­ late-October highs to $0.3792. As the mark ket for German marks. At first, in the nervous eased, the German Federal Bank sold most of trading following the suspension of official sup­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin □ March 1976 port for the lira, the mark slipped back to ment a voluntary arrangement to limit wage $0.3823. But, as some of the funds coming out increases to 6 pounds per week over the next of the weakening European currencies were year. This arrangement, backed up by a program shifted into marks, the mark rate moved up of price restraint, was designed to bring the steadily against those currencies and then inflation rate down to 10 per cent by the end against the dollar as well. On 2 days when of 1976, comparable to levels then prevailing trading threatened to become disorderly, the in most of the leading European countries. In Federal Reserve sold a total of $20.4 million addition, short-term British interest rates were equivalent of marks to steady the market, fi­ increased, thereby restoring the differential in nancing these sales from balances. By January favor of the pound, which had been partially 30 the mark reached a rate of $0.3868, some eroded by firmer U.S. interest rates. These 3% per cent above its September low. measures took some of the immediate pressure off sterling. It therefore continued to trade around $2.15% even as the dollar strengthened sharply against the main continental currencies, S T E R L IN G thereby narrowing its trade-weighted deprecia­ In the first quarter of 1975, sterling remained tion to 26.2 per cent at the end of July. steady in terms of its “effective” trade- Until the voluntary restraint could be tested, weighted change since December 1971 at a the market nevertheless remained skeptical that depreciation of 21.5 per cent. As the dollar this new approach would slow Britain’s inflation weakened against all main currencies at this significantly. Thus, when end-of-July demand time, sterling showed a modest gain in dollar for oil royalty payments passed, traders cau­ terms. Nevertheless, markets had become in­ tiously rebuilt some of their short sterling posi­ creasingly discouraged over the prospects for tions and, as the dollar continued to strengthen, sterling. As elsewhere, the British economy had the spot rate dropped off to a low of $2.0975 slipped into serious recession. But, in contrast on August 11. Sterling then steadied, as an to other industrial countries, inflation in the increasing number of British trade unions voted United Kingdom was approaching runaway to accept the pay limits under the new anti­ proportions, fueled by wage increases of as inflation plan. Moreover, early in September much as 30 per cent per annum. Chancellor Healey’s denial at the IMF annual Aside from the potential strains on the do­ meetings of any government intention to seek mestic social fabric, the inflation threatened to a new depreciation of the pound helped to erode the clear progress Britain had made in reassure the market. narrowing its previously massive current-ac- Britain’s trade deficit had begun to widen count payments deficit. That deficit nevertheless once again, however, as imports for develop­ remained uncomfortably large, and traders had ments of the North Sea oil fields increased become doubtful that it could be fully financed, sharply. The announcement in mid-September since U.K. public sector borrowings abroad had that the government would propose plans to slowed and new OPEC (Organization of Petro­ alleviate unemployment triggered exaggerated leum Exporting Countries) investments in ster­ fears of a general reflationary package, and the ling assets began to taper off as OPEC surpluses pound began a sharp decline. Details of the declined. Consequently, sterling had become government’s proposals showed a more modest vulnerable to selling pressure, and in the 3 package of selective employment measures than months to the end of June it had dropped some had been expected. Nevertheless, sterling con­ 10 per cent against the dollar—to an “effec­ tinued to fall off under heavy selling until early tive” depreciation since December 1971 of 28.9 October, when it reached $2.0262 for an effec­ per cent. tive depreciation of 29.7 per cent. The Bank By that time, however, the U.K. Government of England intervened flexibly to smooth the had begun to negotiate with labor and manage­ decline. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 215 By early October the problems of New York 1976, with the pound buoyed by further cover­ City were beginning to weigh on the dollar, and ing of previous short positions, a pick-up of when U.S. interest rates suddenly declined, the commercial demand, and the large interest rate pound joined other European currencies in a differential in favor of the United Kingodm. generalized rise against the dollar. Moreover, With inflation slowing, the British authorities on October 6 the Bank of England raised its allowed domestic interest rates to follow the minimum lending rate by 1 percentage point to easing of interest rates in the United States and 12 per cent in a move widely interpreted in the elsewhere. The improved market atmosphere market as reflecting the authorities’ intention to helped shield sterling from being drawn into the maintain favorable short-term interest differen­ heavy speculation that erupted in markets for tials in order to discourage outflows of funds. continental European currencies in late January. Consequently, a steady demand for pounds de­ Having traded in the $2.02-$2.04 range since veloped, including a trimming of some of the early December, sterling held at around $2.0275 numerous short positions that had been built up at the end of January, for a net decline of nearly previously. The pound thus recovered gradually 6 per cent against the dollar and 5 per cent on to $2.0820 by early November, with the Bank a trade-weighted basis since last July. In January of England taking the opportunity to recoup the Bank of England cash reserves were bol­ some of its previous reserve losses. Then, to stered by the $1.2 million drawing on the IMF supplement its resources further, the British oil facility. Government announced on November 7 that it would apply for a total of $2 billion in drawings on the IMF, including $1.2 billion from the IMF S W ISS F R A N C oil facility. This recovery was short lived, however, as During early 1975, the Swiss economy was also the easing of exchange market concerns over dragged into recession by the sharp downturns New York City’s finances soon buoyed the in its major markets abroad. At the same time, dollar at a time when the market was reacting recurrent financial, speculative, and hedging to a spate of pessimistic forecasts for the United demand pushed up the Swiss franc in the ex­ Kingdom for 1976. Sterling dropped off in dol­ changes, thereby threatening to weaken further lar terms through most of November, reaching the competitive position of Switzerland’s al­ a new low of $2.0132 on November 28, before ready strained export industries. In order to leveling off once again in early December; in counter recessionary tendencies in the domestic effective terms it eased gently to a 30.1 per cent economy without reversing progress already depreciation. achieved in lowering inflation, the Swiss au­ Beginning in December, some of the extreme thorities took selective fiscal measures. In addi­ exchange-market pessimism toward sterling tion, the National Bank cut its discount rate 1 started to lift. The voluntary wage restraint percentage point in two steps to 4Vi per cent program was effectively dampening wage in­ by May 19 and reduced reserve requirements. creases with clear evidence that inflation was The authorities also took a variety of actions receding. There were also early indications that to contain a further strengthening of the Swiss the British recession was reaching bottom. Re­ franc and discussed with members of the EC covery was expected to be slow in coming, but currency arrangement the possibility of estab­ the government, having announced a shift in lishing a link with the snake as a means of priorities toward stimulating certain key indus­ stabilizing the franc against the other European tries and away from broad social welfare pro­ currencies. By midsummer prospects of an early grams, had reassured the market that it would association with the EC snake dimmed and the strive to maintain Britain’s competitiveness over Swiss franc was again gaining ground against the near term. This firmer undertone for sterling the EC currencies even as it eased back against continued through the year-end and into early the dollar to $0.3720 by early August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin □ March 1976 By this time, the market was focusing in­ then, Swiss consumer price inflation was down creasingly on the relationship between the Swiss to a rate of 3.4 per cent per annum—well below franc and the German mark, the currency of the rates elsewhere. The Swiss trade account Switzerland’s major trading partner. The reces­ had swung into a surplus. Moreover, an early sion in Germany was already deeper and more link with the EC snake was formally ruled out, prolonged than expected, while the economic and, with the franc already having moved slowdown in Switzerland was viewed as corre­ through parity with the Dutch guilder, the mar­ spondingly less severe. ket soon came to expect it would close in on As the market expected a further easing of the German mark as well. liquidity in Germany throughout the late sum­ A number of market participants with recent mer and fall, therefore, the Swiss franc contin­ and long-standing debts in Swiss francs there­ ued to rise against the mark. To moderate the fore began to cover their exposure. In addition, franc’s advance, the Swiss National Bank made commercial banks and private corporations frequent purchases of dollars on the exchanges. moved actively to unwind short franc positions Since these purchases were offset by continuing against marks. Then, with the onset of demand dollar sales to foreign borrowers under the cap­ for Swiss francs for year-end window dressing, ital export conversion program, they resulted in bidding soon escalated. As a result, the franc little net change in reserves. Against the dollar, rose strongly against both the European curren­ the franc drifted somewhat lower, slipping 2 per cies and the dollar. cent to $0.3643 by September 23, as the dollar In order to counter the upward pressure on gained generally in the exchanges. the franc, the Swiss National Bank provided Later in September, however, when uncer­ substantial temporary liquidity to the Swiss tainties surrounding the New York City finan­ banks through a total of $1.8 billion of dollar cial crisis and the trend of U.S. interest rates swaps over the year-end. It also intervened generally weighed on the dollar, the franc led heavily in the spot market, purchasing dollars the rebound of European currencies against the to moderate the rise in the spot rate. Although dollar. Under these circumstances, the National trading conditions were kept generally orderly, Bank stepped up its intervention. Also, to re­ the franc rate continued to firm and reached duce Swiss interest rates further, it lowered the $0.3823, its highest level in 5 months. In addi­ official discount and Lombard rates three times, tion, the Swiss franc strengthened to above to 5-year lows of 3 per cent and 4 per cent, parity with the German mark, while increasingly respectively, by October 29. pulling up other currencies along with it against Moreover, to dampen speculative activity, the the dollar. central bank further tightened existing limita­ When the Swiss foreign exchange market tions on forward Swiss franc transactions with reopened on January 5 after the New Year foreigners. Nevertheless, the franc continued to holiday, however, a bunching of orders to buy advance to a peak of $0.3817 by late October, Swiss francs triggered a further sharp rise in while gaining another 2 per cent against the the Swiss franc rate. Professional traders, con­ German mark from August levels. By early cerned about the liquidity-tightening effects of November, the National Bank’s intervention the substantial repayment of year-end swaps, had helped to reassure the market, and once a were reluctant to provide much resistance to this resolution to New York’s financial crisis ap­ increase. Thus, the advance picked up momen­ peared to be in sight, the franc joined in the tum, as more corporations rushed to hedge their general retreat of European currencies. The long-term Swiss franc borrowings and as funds franc eased back more gradually than other flowed into Switzerland from Italy, where the currencies, however, slipping 2 per cent to lira had come under heavy selling pressure. On $0.3733 and rising another Vz of a percentage that day alone, the Swiss franc rate jumped lVs point against the German currency. per cent to $0.3863. Then, and over subsequent By December, market sentiment toward the days, the Swiss National Bank provided forceful franc became even more bullish than before. By resistance to a further rise by large-scale dollar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 217 purchases, both in Zurich and through the Fed­ gressively bolstered market sentiment toward eral Reserve in the New York market. In the the French franc. Trade prospects had been first week of trading in January, the Swiss brightened by announcement of substantial ex­ central bank took in more than $400 million, port contracts from OPEC, while heavy liqui­ and, as the market became aware of the magni­ dation of inventories, reduced energy require­ tude of its intervention, trading conditions ments, and a severe recession at home had cut gradually settled down. into imports. Thus, the trade balance swung Thereafter, the franc eased back, and the from a $3.9 billion deficit in 1974 to a $1.6 market was further reassured by the an­ billion surplus by midyear, sufficient to elimi­ nouncement of another cut in the official dis­ nate France’s oil-inflated deficit on current ac­ count rate to 2Vi per cent on January 12. More­ count. over, the monetary authorities issued new regu­ Meanwhile, monetary policy was kept rela­ lations to monitor more closely the Swiss banks’ tively restrictive in order to combat France’s still open foreign currency positions. Therefore, late high rate of inflation. Interest rates, therefore, in the month, the franc lagged behind the rise moved still further above those in most other of the mark as pressure within the EC snake countries, stimulating sizable inflows of funds built up. Nevertheless, by the end of January, from abroad, and French companies were en­ the Swiss franc at $0.3844 was 3Vi per cent couraged to borrow some $1.3 billion abroad. higher than 6 months before. As a result, the franc gained strongly in the In December the Federal Reserve, the Swiss exchanges not only against the dollar but also National Bank, and the BIS agreed to adjust against other European currencies. By midyear, the System’s pre-August 15, 1971, remaining the spot rate had appreciated almost 20 per cent swap commitments to take account of the De­ from its low of August 1974 to be again in reach cember 1971 and February 1973 dollar deval­ of its central rate against the German mark and uations. As a result, the total dollar countervalue other EC currencies. of the commitments was increased by $196 Meanwhile, the Bank of France had inter­ million. Since the swap line with the BIS was vened to moderate the franc’s rise, partially already fully drawn, a portion of Swiss franc reflected in the $2 billion increase in foreign commitments with the BIS was transferred to exchange reserves over the same period. On the Swiss National Bank so that the entire in­ July 10 the franc rejoined the EC snake at its crease was reflected in the System’s outstanding existing central rate and, thereafter, the Bank commitments to that Bank. of France resumed purchasing moderate Total System indebtedness to the Swiss Na­ amounts of dollars. From $0.2288 on August tional Bank was, therefore, raised to $567.2 1, the franc moved up with the other European million. In December-January, the Federal Re­ currencies before easing back in late August, serve bought $13.2 million equivalent of Swiss even as the Bank of France intervened to francs from the Swiss National Bank against dampen upward pressure on the franc and keep sales of various foreign currencies that the Sys­ it in the middle of the EC snake. tem had acquired either in the market or from In the meantime, the domestic economy con­ correspondents, and an additional $3.1 million tinued to weaken and unemployment was still equivalent from other correspondents. The total rising rapidly. In early .September, President $16.3 million equivalent of Swiss francs was Giscard d’Estaing announced a major fiscal held in balances against outstanding swap debt package, which would provide substantial stim­ in that currency. ulus through an investment tax credit and through large-scale expenditures on social in­ frastructure investments and transfer payments. At the same time, the Bank of France’s dis­ F R E N C H F R A N C count rate was reduced by IVi percentage points During the first half of 1975 a massive turn­ to 8 per cent. In addition, reserve requirements around in France’s external position had pro­ on demand deposits were lowered from 11 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin □ March 1976 cent to 2 per cent to inject additional liquidity reaffirmed that new foreign borrowings would into the banking system, and credit regulations be strictly limited, and, with fewer approved were eased to stimulate construction and con­ issues still in the pipeline, demand from con­ sumer spending. This expansionary package versions tapered off. first gave pause to the market, but, after a Against this background the franc came temporary decline in the franc rate, strong com­ heavily on offer in mid-January, after a leading mercial demand reappeared and the franc eased French commercial bank predicted a large 1976 back less than other EC currencies when the trade deficit and called for a slight downward dollar advanced across the board after mid-Sep- exchange rate adjustment. Substantial commer­ tember. cial selling of francs, including bidding for Thus, by late September, the French franc dollars by French oil companies to meet mid­ had emerged near the top of the EC band, a month payments, sustained the decline. By Jan­ position it was to hold through the year-end. uary 20, the franc rate had slipped to $0.2230 It continued to benefit from relatively high in­ and had also weakened against other EC cur­ terest rates, conversions of foreign borrowings, rencies, despite moderate resistance by the Bank and inflows of funds following renewed tensions of France. in the Middle East. In addition, by comparison Thus, the franc was already vulnerable in the with other countries in the EC, France appeared exchanges when news of the suspension of more likely to enjoy a modest economic recov­ official intervention in Italy on January 21 ery than those more dependent on a revival of quickly unsettled the market. In response, demand in export markets. Consequently, the dealers scrambled to unload long French franc franc joined in the rebound of European curren­ positions, and leads and lags shifted against the cies in late September and October, as the dollar franc, pushing the spot rate down Vi of a per­ generally weakened in response to concern over centage point against the dollar and lA of a New York City and an easing of U.S. interest percentage point against the German mark. The rates. Bidding for francs was frequently heavy, Bank of France sold large amounts of dollars and, despite large dollar purchases by the Bank and smaller amounts of German marks to keep of France to avoid pressures within the snake, the franc from falling to the bottom of the EC the spot rate strengthened to a high of $0.2306 snake. by the end of October. Selling pressure nevertheless remained in­ Thereafter, as the dollar regained buoyancy tense, as rumors began to circulate of a possible generally, the spot franc settled back some 3 downward adjustment of the franc. These per cent against the dollar during November and rumors were forcefully denied by French Fi­ December. Although the Bank of France’s dol­ nance Minister Fourcade and Foreign Trade lar intervention tapered off, it began to purchase Minister Barre. On the last days of January, the small amounts of German marks to keep the balance of speculative forces in the market franc off the top of the snake. The central bank began to tip in favor of the mark. Thus, the intervention was partly reflected in French offi­ French franc, while still generally on offer, cial exchange reserves, which had swelled by bottomed out at $0.2219 and traded around more than $2 billion in the 6 months through $0.2236 at the month-end, some 2lA per cent the end of December. below early-August levels. Shortly after the new year, however, market sentiment toward the French franc suddenly turned bearish. With the French economy pick­ IT A L IA N L IR A ing up some momentum, the trade balance was moving into deficit, prompting dealers to Through early summer 1975 following a period reassess the outlook for the franc. As French of severe monetary restraint, Italy cut back credit conditions improved, French companies domestic inflation significantly. It also achieved repaid some of their previous foreign borrow­ a drastic turnaround in its current-account pay­ ings. At the same time, the French Government ments position, from a $7.5 billion deficit in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 219 1974 to near balance in the first half of last year. With interest rates generally steady else­ Italy’s previous payments difficulties had led to where, Italian importers repaid commercial about a 25 per cent weighted-average deprecia­ credits granted in 1974 and Italian banks moved tion of the lira since early 1973 and to a large to liquidate more of their foreign currency lia­ accumulation of foreign debt by private and bilities. Consequently, outflows of short-term state-owned enterprises. The Italian authorities funds began to weigh on the spot rate and the still sought greater wage and price stability, lira followed only part way in the general rise which could strengthen the current account fur­ of European currencies against the dollar in late ther and bring the over-all payments account September and early October, even as the Bank into equilibrium. Nevertheless, the progress of Italy resumed support of the spot rate through thus far in 1975 had been at the cost of a severe dollar sales. drop in output and rise in unemployment. At By late fall, Italian industrial activity was the same time although many Italian exports showing only tentative signs of recovery as were clearly competitive in world markets and sectoral bottlenecks blunted the impact of the Italy’s recession was deeper than elsewhere, the fiscal and monetary stimulus that had been pro­ protracted weakness in foreign demand had vided. Meanwhile, the financing of an increased frustrated prospects for the kind of export-led budget deficit—estimated at nearly 10 per cent recovery considered essential for the lira’s of GNP—and the continuing release of funds longer-term stability in the exchange markets. held under the import deposit scheme contrib­ Through most of early 1975, the lira had uted to a rapid expansion of the monetary base. moved more narrowly than other EC currencies Against this background, imports began to against the dollar, rising by 4 per cent through pick up sharply as some firms restocked depleted the end of May and falling by 6 per cent in inventories. Thus, the trade balance deteriorated June and July to $0.001505. While the lira eased sufficiently to erode the surplus that had against the dollar in the early summer, its im­ emerged by midyear. With renewed capital out­ provement against other EC currencies had ena­ flows developing, selling pressure on the lira bled Italian public authorities and Italian banks began to build up in the exchanges, and the to repay substantial foreign debts. Bank of Italy had to provide heavy support to Late in July, in order to deal with the keep the lira in line with other European cur­ deepening recession, the Italian Government rencies. By the year-end, these losses had re­ announced a $5XA billion equivalent reflationary duced official exchange reserves to $1.3 billion. package. The lira came under some selling Shortly after the new year, a cabinet crisis pressure in early August, dipping below precipitated by the withdrawal of Socialist Party $0.001500, and the Bank of Italy intervened to support for the minority coalition culminated in moderate the decline. The immediate ner­ the resignation of the government. As efforts vousness soon passed, however, and the cumu­ went forward to strike a new political compro­ lation of seasonal demands, largely receipts mise on which a viable cabinet could be formed, from tourism, buoyed the lira through early selling pressure on the lira grew heavy. At first, September. The Bank of Italy was thus able to the outflows were readily met with forceful recoup part of its earlier sales, while also taking intervention by the Bank of Italy, and the market into reserves the proceeds of Italy’s $930 mil­ was in better balance by January 9. Never­ lion drawing on the IMF on September 4. theless, the substantial reserve losses by the In September, while following the general Italian authorities had become a matter of dis­ decline against the dollar through late-month, cussion in the press and of concern in the the lira began to ease against other European market. currencies as well. In a further step to stimulate Moreover, uncertainties over the lira’s pros­ the economy, the Bank of Italy cut its discount pects were compounded when loans to Italian rate on September 15, for the second time in institutions were mentioned in the spate of alle­ 1975, from* 7 to 6 per cent, and adjusted its gations appearing in the U.S. press over the other lending rates by a similar margin. condition of U.S. banks, and renewed heavy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin □ March 1976 selling pressure soon erupted. By January 20, Parliament late in January that official interven­ the Bank of Italy had sold over $500 million tion policy would be aimed at “assuring a more since the beginning of the year and, to normal development of international transac­ add to its cash balances, on that day drew $250 tions, eliminating accidental oscillations in the million under the swap line with the Federal lira rate due to purely speculative transactions, Reserve. and orienting the lira toward a level indicated But by this time, in the absence of the for­ by medium-term underlying balance-of-pay­ mation of a new government, the Italian au­ ments trends.” thorities were facing some hard choices. These were well described by Bank of Italy Governor Professor Paolo Baffi in an address to the Insti­ N E T H E R L A N D S G U IL D E R tute for Advanced Military Studies in Rome on January 15, 1976: In order to stimulate a still sluggish domestic economy, fiscal and monetary policy in the I would say that the task of defending the Netherlands continued to be relaxed throughout lira at present may be likened to that of defending a fortress with insufficient sup­ early 1975. As a result, monetary growth accel­ plies of food and ammunition and with the erated, and, although the Netherlands Bank cordon of the besieging army closing further temporarily absorbed some of the excess liquid­ and further in every day. In this analogy the territorial inroads represent the progressive ity from time to time, Dutch short-term interest loss of purchasing power of the lira; the rates declined steadily to levels well below those gradual exhaustion of supplies of food and in the United States, Germany, and Belgium. ammunition corresponds to the erosion of the foreign exchange reserves and of Italy’s Thus, Dutch commercial banks placed increas­ credit standing abroad. In the conduct of ing amounts of funds abroad, both in the Euro­ economic policy, however, we find no dollar market and in continental financial cen­ counterpart for two fundamental imperatives in a state of siege, viz. food rationing and ters. Moreover, long-term capital outflows, in­ unity of command. cluding several new Euro-guilder bond issues, The counterpart of rationing might be remained substantial. Together, these flows found in a genuine incomes policy for which there have been vain demands for more than more than offset the Netherlands large currenta decade. The counterpart of unity of com­ account surplus. mand would be a broad coordination of The guilder, therefore, had declined more economic policy on the basis of a consistent set of objectives, one of which must be steeply against the dollar than other EC curren­ monetary stability. cies during early summer, contributing to a On January 21 the Italian authorities an­ narrowing of the EC snake. In August Dutch nounced that, to conserve reserves, the Bank interest rates eased further, and the Netherlands of Italy would suspend official dealings in the Bank cut its discount rate by V2 of a percentage exchange markets. This decision left the lira point to 5Vi per cent. Partly in response, the effectively floating freely in the exchanges and, guilder drifted back to about $0.3775. Then, as selling continued over the next few days, the after having held fairly steady through midspot rate plummeted by some 6% per cent in September, it dropped back another 4 per cent occasionally disorderly trading. The lira contin­ to a 19-month low of $0.3629 as the dollar ued to fluctuate widely over the rest of the advanced across the board. But, toward the end month, closing on January 30 at $0.001321, of September, the guilder rebounded with other some 10 per cent below levels prevailing before European currencies, as New York’s fiscal crisis the cabinet resignation. The proceeds of the and declining U.S. interest rates weakened the $250 million swap drawing on the Federal Re­ dollar generally. serve remained unused but available for inter­ Meanwhile, the Netherlands current account vention by the Bank of Italy to maintain an had been further bolstered by growing foreign orderly exchange market following resumption sales of Dutch natural gas. In addition, Dutch of official dealings, ultimately set for March 1. short-term interest rates bottomed out in re­ Treasury Minister Emilio Colombo reported to sponse to seasonal factors. Although the Neth­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 221 erlands Bank took in dollars on a swap basis, guilder—circulated in the market. In order to providing guilders to prevent a tightening of maintain the Benelux limits, the Netherlands liquidity from exerting strong upward pressure Bank, intervening in coordination with the Na­ on the exchange rate, the guilder remained tional Bank of Belgium, bought substantial buoyant both against the dollar and against the amounts of Belgian francs as well as dollars. other EC currencies throughout the late fall. On In a further effort to relax pressure on the those occasions when new developments in New guilder, the Netherlands Bank also announced York City’s ongoing fiscal crisis unsettled the on January 30 a V2 of a percentage point cut in markets, the guilder was bid up strongly with its bank rate to 4 per cent and a 1 per cent other currencies and the Netherlands Bank cut in its other interest rates. Nevertheless, by bought small amounts of dollars to maintain the end of January the guilder had firmed to orderly markets. Even so, by early November, $0.3752, for a net rise of 3lA per cent since the guilder had advanced 5 V* per cent from its its mid-September low. September lows to $0.3818. Once elements of a compromise to New York’s financial problems began to emerge late B E L G IA N F R A N C in November, the guilder eased back to trade through the year-end at around $0.3728. By midsummer 1975 the deepening recession Against other European currencies, however, it in neighboring countries had exerted a serious remained firm. Dutch current-account surpluses drag on the Belgian economy, pulling industrial continued to cumulate, and prospects improved production down by over 10 per cent and push­ for further gains in manufactured exports as ing the unemployment rate up to 6V2 per cent. signs of a recovery of demand abroad, espe­ But the rate of inflation remained persistently cially in Germany, started to appear. In addi­ high and above the rates of some of Belgium’s tion, it was announced that the previous ban major trading partners. Faced with this di­ on interest payments to nonresidents would be lemma, starting in May 1975 the government lifted, effective January 1, 1976. By late De­ had imposed a selective price freeze to break cember the guilder was pushing against its upper inflationary expectations while gradually easing limit within the Benelux currency arrangement monetary conditions to stimulate the economy. although, at first, only modest intervention by By August 21, the National Bank of Belgium the Dutch and Belgian central banks was needed had cut its discount rate in two steps to 6 per to maintain the IV2 per cent margin between cent, generally in line with the easing of interest the two currencies. rates elsewhere on the continent, and had re­ By late January, however, demand for leased commercial bank reserves. Thus, the guilders was exerting greater upward pressure Belgian franc joined in the general downtrend not only against its partner in the Benelux band of currencies against the dollar, easing to but against all EC currencies. Substantial pay­ $0.026040 by early August, while remaining in ments for gas and refined oil exports, interest the upper half of the EC band. charges on outstanding Euro-guilder loans, and During September the market became con­ other month-end commercial demands com­ cerned that Belgium’s inflation-, fueled by a bined to swell bidding for the Dutch currency. continued rise in price-indexed wages, was not Then, on January 28, a press report that the slowing as rapidly as hoped in response to the Benelux band might be abandoned triggered price freeze. With the trade balance worsening large-scale speculative demand for guilders in the face of depressed demand abroad and the against sales of Belgian francs. Although this application of a rather low interest rate policy, report was officially denied both in Amsterdam the commercial franc became vulnerable to and in Brussels, the pressures intensified on the selling pressures. last 2 days of the month, as rumors of a re­ Against this background, as the dollar ad­ alignment of parities among EC snake curren­ vanced strongly in the exchanges just after midcies—including a possible revaluation of the September, the franc fell away more rapidly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin □ March 1976 than other European currencies. By September the Benelux band was extended to its IV2 per 23, the commercial franc had dropped 5 per cent cent limit. Intervention was modest, though, to $0.024730 and, to cushion the decline, the until generalized speculation over European National Bank of Belgium sold moderate currency relationships emerged in late January. amounts of dollars. For its part the Federal In particular, on Wednesday, January 28, the Reserve took this opportunity to resume pur­ pressures on the Benelux band sharply intensi­ chases of Belgian francs against outstanding fied in response to newspaper reports that the swap debt incurred before August 1971, acquir­ Benelux currency arrangement might be dis­ ing $6 million equivalent over September banded. The reports were strongly denied by 23-24. Pressures on the Belgian franc then both governments, but the National Bank of subsided, and the commercial rate rebounded Belgium and the Netherlands Bank were obliged with other European currencies in late Sep­ to absorb large amounts of francs through sales tember and October. On a few occasions during of guilders in order to maintain the limits of this time, the National Bank made small pur­ the band. The National Bank supplemented this chases of dollars to maintain orderly market intervention with sales of dollars as well. conditions in Brussels. Moreover, since much of the speculation was During November and early December the in the form of adverse shifts in leads and lags, Belgian franc again drifted down against the the National Bank responded by raising interest dollar along with other EC currencies. Concern rates on a variety of trade-related paper. The over Belgium’s price performance continued— pressure against the franc then subsided, at least especially after proposed government anti-infla­ temporarily, with the Belgian franc trading on tionary measures ran into opposition from the January 30 at $0.025470, 2lA per cent below labor unions and within Parliament. Conse­ levels of 6 months before. Meanwhile, the Fed­ quently, the franc eased to near the bottom of eral Reserve continued to make modest pur­ both the EC snake and the separate Benelux chases of Belgian francs and repaid a further band. The authorities were able, however, to $44.7 million of swap debt. The remaining 1971 stabilize the franc’s position within those limits commitments in Belgian francs were thereby with only occasional modest dollar sales. reduced to $252.9 million by the end of January. Meanwhile, on December 2 the Federal Re­ serve and the National Bank of Belgium imple­ mented an earlier agreement to adjust commit­ JA P A N E S E Y E N ments under outstanding Federal Reserve swap drawings initiated prior to August 15, 1971. As Japan had begun to pull out of recession ahead a result of these adjustments, the System’s debt of most other industrial countries, but by mid­ in Belgian francs was decreased to take into summer the recovery was losing its initial mo­ account the 1971 Belgian franc revaluation, and mentum. Thus, the market expected the author­ the corresponding assets of the National Bank ities would follow up their increasingly stimu­ of Belgium were increased by $54 million to lative policies of the spring with additional $315.8 million to take into account the dollar reflationary measures and a further gradual eas­ devaluations of 1971 and 1973. Subsequently, ing of monetary policy. Meanwhile, the deep the Federal Reserve resumed a program of reg­ and long-lasting recession abroad had seriously ular market purchases of small amounts of Bel­ clouded prospects for Japanese exports. Al­ gian francs and used these acquisitions to repay though Japan’s trade-account surplus had wid­ $18.1 million equivalent of outstanding debt ened substantially earlier in the year, by the before the year-end. summer the market was increasingly concerned In December and early January, trading in that export demand would prove insufficient to commercial Belgian francs was fairly balanced, cover any growth in imports pulled in by the but, with the Dutch guilder on a rising trend, incipient recovery. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 223 As a result, the yen lost buoyancy in the Following the November 15-17 Rambouillet exchanges and, as demand for dollars built up summit meeting, the Japanese press carried re­ in Tokyo, the spot rate slipped back 4Va per ports suggesting that the yen might be allowed cent from early-March levels to 298 yen to weaken further before the January 1976 Ja­ ($0.003356) by early August. As expected, the maica conference of the IMF. A public workers’ Bank of Japan on August 12 cut its discount strike also had an adverse effect, as did news rate by Vi of a percentage point to IV2 per cent of an increased Japanese current-account deficit and indicated it would regulate various limits in October and scaled-down estimates of the on bank credit expansion more flexibly. In ad­ strength of the Japanese recovery. dition, on September 17, the government an­ The Bank of Japan, while lowering its inter­ nounced another package of measures to aid the vention level, again offered firm resistance to recovery, including increased public works ex­ the yen’s decline, and by mid-December the penditures and financial aid to medium- and spot rate bottomed out at 3063A yen small-sized firms, while further relaxation of ($0.003260), some 2% per cent below earlymonetary policy was suggested as well. August levels. Thereafter, bearish sentiment Meanwhile, many exchange dealers had some began to lift on a combination of positive fac­ concern over the eventual deterioration of tors, including an expected increase in January Japan’s current balance, and news of the col­ of the swap quotas for foreign banks in Japan lapse of a major Japanese industrial corporation and heavier-than-anticipated export bill conver­ had caused concern over the financial position sions. Consequently, the exchange market came of Japanese companies. Thus, the yen remained into better balance in quieter trading through the on offer in sporadically heavy trading through­ year-end. out August and September. The Bank of Japan By early 1976 the pendulum had swung back intervened forcefully first at 298 yen and then, in favor of the yen. The outlook for the trade as the dollar gained strongly elsewhere in the balance brightened, as economic recoveries exchanges, it moved the intervention level in elsewhere bolstered export prospects while the two steps to 303 yen ($0.003300). The heavy slowing of Japan’s recovery dampened import intervention was reflected in a 2-month decline growth. Moreover, in response to a renewed of $1.4 billion in Japanese official foreign ex­ decline in U.S. money market rates, foreign change reserves. purchases of Japanese securities picked up. By late September a bunching-up of export Thus, traders began to cut back long dollar bill conversions and the decline of dollar rates positions. By the month-end, the yen was bid against the major European currencies helped back up to 303% yen ($0.003293), some 1 per to relieve the pressure on the yen. Thus, pre­ cent above December’s low. Meanwhile, the viously adverse leads and lags were reversed, Bank of Japan purchased dollars to moderate providing support for the spot rate even as the the yen’s advance, contributing to a reserve gain current-account deficit widened. Moreover, net of $338 million in January. capital outflows through nonresident sales of Japanese securities slowed as U.S. interest rates began to decline and OPEC interests made oc­ C A N A D IA N D O L L A R casionally sizable investments in yen. In this improved atmosphere, there was little market In the spring and early summer of 1975, the reaction to announcement of a long-anticipated markets had taken a bearish view of the outlook discount rate cut to 6V2 per cent on October 23. for Canada’s payments position. Canada’s cur­ In fact, the yen traded below the 303-yen level rent account had already swung into deep defi­ from mid-October to mid-November. cit. And, with Canada’s economic downturn Selling pressure on the yen soon re-emerged, both milder and shorter than those abroad, im­ however, in reaction to a variety of events. ports were rising more rapidly than exports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin □ March 1976 Moreover, Canada’s rate of inflation remained Late in September, the market for Canadian high, particularly compared with that of the dollars took on a more hesitant tone especially United States, while new labor settlements sug­ when, and in the backwash of the New York gested that wage rates would continue to rise City fiscal crisis, a large issue by a Canadian sharply, threatening further erosion of Canada’s municipal borrower received a mixed reception competitive position. To contain inflationary in the New York market. Then, since figures pressures, monetary policies had been tightened had just been released showing a widening of somewhat in the spring, and modest favorable the trade deficit and a more rapid rise in wages interest rate differentials had emerged by May. and prices, the market was receptive to rumors But uncertainties over the economic outlook that began to circulate in the exchanges on blunted any significant inflows of short-term October 10 that the floating Canadian dollar funds, thereby leaving a potentially large pay­ would be devalued as part of an upcoming ments gap to be filled by long-term Canadian government package of new economic meas­ borrowings abroad. ures. An ensuing bout of selling pushed the rate Consequently, the market for Canadian dol­ back down to $0.9699, with the Bank of Canada lars was left vulnerable to shifting expectations intervening to steady the market. over the extent to which Canadian borrowers On October 14 the government announced a could tap these markets. During the first half major new initiative to curb accelerating do­ of the year, a heavy schedule of foreign public mestic inflation. A 3-year wage and price pro­ and private issues in other markets, particularly gram was introduced, limiting annual wage in­ in the United States, had at times seemed to creases covered by the plan to 10 per cent in preclude additional large Canadian offerings. the first year. In addition, price increases were Thus, the Canadian dollar had been under re­ restricted to reflect cost increases only. Profit current selling pressure, declining by some 4 margins were frozen, and corporate dividends per cent from $1.0100 in January to $0.9696 were fixed at current levels. by the end of July. The pressure reappeared in Later on, Bank of Canada Governor Bouey early August, and the rate slipped to as low as stressed the Bank’s commitment to moderating $0.9616—its lowest level in 5 years—by Au­ the growth of monetary aggregates through gust 18. higher interest rates if necessary. Meanwhile, Over the following weeks, the atmosphere major new foreign issues were undertaken by began to improve in response to signs of an Canadian public and private borrowers both in improved outlook for Canadian placements the United States and in the Euro-currency mar­ abroad as well as reports of Soviet demand to kets, and prospects of large-scale conversions finance large new grain purchases in Canada. prompted further demand for the Canadian dol­ By September new foreign borrowings by mu­ lar. As a result, the Canadian dollar rallied in nicipal and provincial agencies had been placed, late October and continued to advance through and a large number of Canadian corporate issues most of November, reaching $0.9912 by No­ in the Euro-bond market were announced, as vember 28 or a rise of 2 per cent in 6 weeks’ firms began to take advantage of the planned time. In December the rate eased back largely removal of withholding taxes on foreigners’ on seasonal factors, as short-term outflows to holdings of long-term Canadian corporate se­ the United States increased ahead of the De­ curities. As proceeds of these various new issues cember 15 corporate tax date and as conversions were converted into Canadian dollars, the spot of foreign borrowings tapered off temporarily. rate began to move up in the exchanges, reach­ In January 1976, the Canadian dollar came ing $0.9788 by September 23. Meanwhile, on into renewed heavy demand. Canadian provin­ September 3, the Bank of Canada had raised cial authorities announced several substantial its discount rate by 34 of a percentage point to new foreign borrowings, which, taken together, 9 per cent. would more than offset the expected current-ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 225 count deficit in the early months of the year. rency markets correspondingly declined. More­ Moreover, U.S. interest rates were drifting over, with the balance of payments of most downward while Canadian rates held firm, industrial countries improving significantly dur­ opening record interest rate differentials of as ing 1975, governments and other public author­ much as 4 percentage points in favor of Canada. ities drastically scaled down their takings from By late January, the Canadian dollar had been the market. Substantial sums were raised, how­ bid above the $1.00 level, for a net rise of 3 ever, to finance exploration and development of per cent over the 6-month period. Largely re­ new energy sources, particularly in the North flecting the Bank of Canada’s day-to-day inter­ Sea. vention to moderate exchange-rate movements, The growth of Euro-dollar lending was easily Canadian reserves rose by a net of $375 million facilitated by a strong expansion of new supplies from July 1975 through January 1976. to the market. Unlike 1974, however, when OPEC countries were the principal source of additional deposits, the persistent easing of do­ mestic monetary conditions in most industrial E U R O -C U R R E N C Y M A R K E T S countries led to large-scale shifts of funds from The Euro-currency markets grew increasingly their domestic money markets into the Euro­ active during the latter half of 1975, after a currency markets. Thus, the industrial countries marked slowdown of activity earlier in the year. became the major net source of funds, while The great bulk of new bank lending, however, the scale of new OPEC placements tapered off continued to be concentrated in the nonindustrial significantly as the combined external surplus countries. Nearly half of new syndicated me­ of these countries deteriorated sharply. dium-term credits went to the non-oil-producing By January 1975 market conditions were still less-developed countries, which suffered from clearly improving for prime borrowers. Loan mounting payments imbalances in the wake of spreads tended to narrow, amounts that could the severe contraction of world demand. In be syndicated increased, and maturities were addition, several of the oil-producing countries lengthened. Over time, however, the major that had launched ambitious economic develop­ banks operating in the market had tended to ment programs began to appear as substantial view more cautiously the ability of some bor­ borrowers, as demand for oil declined and their rowers from developing countries to meet inter­ imports escalated. Sizable amounts were also est payments and redemption schedules on out­ raised by Eastern European countries, although standing debt. In addition, outstanding loans to their share of total loans tended to decline certain industries, especially for financing somewhat. tankers, remained a continuing concern. As In contrast, demand for loans by borrowers credit standards were tightened, there were in­ from the major industrial countries, while pick­ creasing indications of a greater selectivity on ing up here and there toward the year-end, the part of lenders with regard to participating remained slack. In the early stages of the eco­ in proposed new loans to various borrowers. nomic recovery, private and semipublic cor­ Thus, in January 1976 syndicated medium-term porations in these countries were still trying to bank credits slowed down, as the market at­ rebuild liquidity and otherwise to strengthen tempted to digest the previous heavy volume their balance sheets. In order to reduce their of lending. dependence on sources of finance available only In the Euro-bond market, however, the rapid at variable rates of interest, many of these firms expansion of activity that accelerated during late took advantage of favorable conditions in do­ 1975 carried over into the new year. With bond mestic and international bond markets to raise yields becoming increasingly attractive as long-term capital at fixed interest rates. Thus, short-term interest rates eased back much more their reliance on bank lending in the Euro-cur­ sharply than long-term rates, institutional inter­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 Federal Reserve Bulletin □ March 1976 est in new offerings of prime borrowers contin­ ing to many of the countries that found it im­ ued to be exceptionally high. Thus, public and possible to raise funds in the market. private entities in many countries took advan­ Short-term interest rates in the interbank tage of favorable market conditions to place Euro-dollar market tended to follow closely unprecedented amounts of new bond issues in movements of domestic rates in the United international markets. States. The 3-month Euro-dollar rate leveled off Moreover, foreign issues in the New York at around 7 per cent per annum in August, but capital market, which had swelled to a record then moved upward again in September to a $7% billion in 1975, remained heavy at $500 peak of 8% per cent in early October. There­ million in January 1976. Most of the borrowers after, the rate began to decline sharply as U.S. were from the industrial countries, although monetary conditions turned easier, and after some issues of developing countries with rela­ steadying at around 6V2 per cent during No­ tively favorable balance of payments positions vember and December, the rate eased again to were also well received. In addition, interna­ a 3-year low of 5V2 per cent by the end of tional and regional organizations borrowed sub­ January, for a net decline of IV2 percentage stantial amounts to finance their increased lend­ points over the 6-month period. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

227 Statements to Congress Statement by Richard A. Debs, First Vice vis-a-vis unfriendly takeovers. This is a some­ President and Chief Administrative Officer, what more complex question, but the basic Federal Reserve Bank of New York, before the economic issues are essentially the same as in Committee on Banking, Housing, and Urban any acquisition. The complexities arise because Affairs, U. S. Senate, February 16, 1976. the acquisition is “unfriendly,” which normally means that the management of the target com­ The subject of these hearings—the Microdot pany does not wish to have the company ac­ case and the issues raised by it—presents many quired. But public policy is not primarily con­ provocative and complex questions, none of cerned with the interests of manage­ which have simple answers. They touch upon ment—whether of the bidders or of the target a wide spectrum of public policy issues—rang­ company. Public policy is concerned primarily ing from policy governing business mergers and with the interests of the public at large. Not acquisitions to principles of fiduciary respon­ the least of these broader public interests is a sibility and safeguards against conflicts of inter­ basic concern with the effective functioning of est. They range from broad policy consid­ our competitive economic system. That system erations to the narrow application of rules of will not function effectively if incumbent man­ conduct and to specific findings of fact. They agements of all firms—no matter how well or also involve the securities laws, the banking how poorly managed—are protected from laws, and the general civil law itself, as well tender offers that they do not accept, but which as codes of conduct and business ethics. otherwise would be beneficial to the owners of As a Federal Reserve official I intend, of the company or to the general public. Other course, to focus on the issues of this case things being equal, such acquisitions should be relating to banks and banking. Before doing so, beneficial to the economy. however, it would be useful to put these issues Of course, other things are not always equal, into better perspective by reviewing briefly some and because of that there is indeed a public of the other—separate, but closely related— policy issue here. That issue is whether share­ considerations involved. holder interests are adequately protected under To begin with, there is the issue of public present laws and practices, and whether, in fact, policy toward mergers and acquisitions in gen­ the Nation’s experience with unfriendly take­ eral. In brief, I think it is fair to say that public overs over the past several years indicates that policy does, and should, recognize the impor­ they have been beneficial to the shareholders tance of mergers and acquisitions in contributing involved and to the economy in general. In to the effective functioning of our economic addressing this issue, one of the central ques­ system. Such acquisitions are, of course, subject tions is whether shareholders are able to make to certain limitations—primarily in the antitrust rational and informed judgments in takeover laws that are designed to encourage competi­ situations. tion, and in the securities laws that are designed This is an important question and is the sub­ to protect investors. Apart from such limita­ ject of current study within the Congress. I don’t tions, however, it seems clear that it is not know what the answer is, or will be, and there public policy to discourage mergers and acqui­ is no need to seek an answer within the context sitions in general. of these hearings today. However, it is impor­ The next question relates to public policy tant to agree on the basic policy issue involved: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin □ March 1976 that issue is not whether unfriendly takeovers course, mean that the bank has failed to meet are contrary to the public interest per se. The its obligations. A bank can undertake such a issue is, given the potential economic benefits transaction and not breach its obligations to the of business mergers or acquisitions, what kinds target customer so long as it maintains the of safeguards are necessary to prevent abuses, confidentiality of the information given to it by thereby protecting the interests of shareholders that customer. The question of whether or not and the public in general? it has indeed maintained the confidentiality of I think it is important to state the issue in the information is a question of fact. these terms in order to separate the public policy The problem, of course, is that inherent in question on unfriendly takeovers from some of this situation is the potential for a conflict of the other questions raised in the Microdot case, interest. One of the legislative remedies that particularly as they relate to banking. If public might be proposed to prevent such conflicts policy on takeovers is to be neutral, banks would be a law prohibiting bank participation should be able to finance them just as they would in any unfriendly tender offer where two cus­ any other business transaction. If public policy tomers of that bank are involved. I do not is to discourage them, or to subject them to believe that such legislation would be desirable limitations, all parties involved—banks as well or necessary. For one thing, it would severely as others—should be subject to the same limita­ limit the possibility of bank financing of a tender tions. offer for the shares of a major firm. Large firms To return to the present case, and the specific often have customer relationships with many of question of banking laws and practices, the the major banks in the country. Such legislation issues here relate to conflicts of interest and the would thus put large corporations in a specially responsibilities of banks to their customers. The protected position with regard to tender offers, issues arise because we have a case where a since both the target company and the acquiring bank grants a loan to one of its customers for company would probably be customers of the the purpose of an unfriendly takeover of another same banks. Although very substantial sums of customer. (By “customer,” I mean a party with money would be required for such acquisitions, whom the bank has a credit relationship and who most major banks would be precluded from has given the bank confidential financial infor­ supplying such funds because of the customer mation in connection with that relationship.) relationships involved, and the supply of funds The case also involves a situation in which three from smaller banks would be restricted by loan directors of the acquiring company are on the limits. Smaller corporations, with fewer major board of the bank or of its parent corporation, bank relationships, would not enjoy comparable and a former officer of the bank is on the protection. acquiring company’s board. I would like to Beyond such a discriminatory effect, I would address each of these questions separately. be very concerned that such legislation could To begin with, when a bank deals with two impede arrangements for the acquisition of of its customers in an unfriendly takeover situa­ major firms in serious financial difficulties. It tion, there is clearly a potential conflict of inter­ is not hard to imagine situations in which the est. It exists because there is the possibility that public interest would be better served by the the bank may use confidential information given acquisition of a major firm—even if the acqui­ to it by one of its customers—the target com­ sition terms are unfriendly to the management pany—to the detriment of that customer. As a of that firm—than by a continuation of a deteri­ general principle, it seems clear that a bank has orating situation. However, such firms are likely an obligation to safeguard any confidential in­ to be indebted to many banks, and a blanket formation given to it by a customer and not to prohibition on financing the acquisition of a use that information—without the customer’s customer could prevent the working out of a consent—for the benefit of any other party. salvage operation that would be in the public The fact that a bank finances an unfriendly interest. takeover involving two customers does not, of As I said, I do not believe that such legislation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 229 would be desirable; and I also don’t believe that information entrusted to it by the aggrieved it would be necessary because there are other party. There are no provisions in the banking remedies available. Before turning to them, laws that apply directly to abuses of this kind. however, I would like to review briefly the But there are principles of common law that question of interlocking directorates, which is could provide remedies for parties harmed by somewhat complicated in this case and some­ such abuses. The courts are particularly well times confusing. equipped to deal with such cases, since they In its narrow sense, the issue of interlocking would presumably involve critical findings of directorates in this case presents essentially the fact as to whether confidential information was same problems of potential conflict of interest indeed misused. that exist in any case in which a bank finances Another safeguard works through the private an unfriendly takeover involving two customers. market place. A bank, like any other business Regardless of whether the borrowing company enterprise, must have and maintain the confi­ is represented on the bank’s board, the basic dence of its customers to survive. In the case issue is the same: whether the bank—including of banks, however, the need for confidence is its directors—uses confidential information en­ particularly essential and particularly delicate. trusted to it by a customer for the benefit of There is a special relationship between banks the bank or any third party. The presence of and their customers that is based on confidence the borrowing company’s representatives on the and trust in the bank itself and in the bank’s bank board—and their influence on bank deci­ commitment to safeguard the confidential affairs sions—would be taken into account in deter­ of its customers. If a bank does not maintain mining the findings of fact as to whether the the highest standards of integrity in its dealings, bank misused confidential information. But the that confidence and trust will be eroded, and basic issue is still whether, as a matter of fact, the bank will suffer the consequences. A bank the bank did misuse such information and did realizes this as it enters into areas of potential thereby breach its obligation to a customer who conflicts of interest, and wise bank management had entrusted it with the information. Thus, the will make sure that the bank acts with the utmost presence of interlocking directorates in a case probity in undertaking transactions that may be such as this should not change the nature of questioned because of possible appearances of the basic question. abusing its trust. And it will do so not only I would like to turn now to the safeguards because of its obligation to do so but also in and remedies that are available in cases such recognition of the future impact upon the bank as this. I would also like to note again the basic if it should lose the confidence of its customers. problem that these safeguards and remedies are This is, of course, not a legal safeguard, nor meant to address. The problem, which is com­ does it offer a remedy to an aggrieved party mon to all of these situations we have discussed, in cases in which there has been a breach of is the potential for abuse that is inherent in any that trust, but it should be recognized as an case where a bank may use confidential infor­ important constraint on the actions of banks in mation entrusted to it by a customer for the these circumstances. benefit of other parties. To do so, it seems to Another possible avenue available is the bank me, would be a breach of that bank’s obligation supervisory process, although there are limita­ to that customer. tions on its use as a safeguard or remedy in At the present time, there are three possible a case such as this. The primary purpose of a ways in which such abuses might be checked: bank examination, of course, is to ensure the the judicial process; the processes of the market safety and soundness of the bank. The examiner place; and, to a limited degree, the bank super­ reviews the bank’s transactions with this in visory process. mind. However, the examiner is also concerned The judicial process is available to any party with the quality of the bank’s management. If, harmed by the action of a bank in improperly during the course of his review of the bank’s dealing with or otherwise misusing confidential loans, he discovers a situation in which the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Federal Reserve Bulletin □ March 1976 management has clearly misused confidential unfriendly takeovers where two bank customers information or is otherwise involved in self- are involved. dealing, he can criticize the management in his In this latter connection, it should be noted report. Bank management is sensitive to such that under present law there is no Federal re­ criticism, and the fact that management knows quirement that the name of the bank involved that its actions are subject to review in the in such a financing need be disclosed to anyone, examination process is in itself a constraint on including the bank’s customer that is the target its actions. However, there are limits to what company. When the basic law governing tender the examiners can do—or should do—in such offers (Public Law 80-439) was being discussed situations. Since the Federal banking laws do in the Congress in 1967, the bill under study not deal with such cases, the bank probably provided for the disclosure of all sources of cannot be cited in a violation of law.1 This is financing for tender offers but with a specific not unlike other situations where banks may exemption for banks. A question was raised as have breached their civil obligations—under the to whether such an exemption was necessary. law of contracts, for example—but where they It was finally decided that it would not be have not violated any provisions of the banking advisable to require that the names of the fi­ laws that impose specific penalties or sanctions nancing banks be disclosed in all tender offers. upon them. Nor can an examiner—because of However, the committee adopted an alternative the nature of the bank examination process— provision, which required that the name of the cause a bank to reverse its action or to compen­ bank involved be filed with the Securities and sate a party harmed by its action. Thus, in this Exchange Commission (SEC), but that “if the respect, the proper legal remedy for the ag­ person filing such statement so requests, the grieved party lies in the judicial process. name of the bank shall not be made public.” All of these safeguards and remedies are That provision was incorporated into the law available today to deal with the conflict of as it exists today. interest issues posed by this case. In the com­ Thus, this matter has been considered by the mittee’s considerations of any proposals for Congress before, and it was decided then that additional measures as a result of these hearings, in general it would not be advisable to require I would hope, as indicated earlier, that a dis­ the public disclosure of the names of the banks tinction will be maintained between the public involved in tender offers. That judgment may policy issues relating to unfriendly takeovers well continue to be valid today. However, in and the specific questions that are posed by this view of the questions raised in the present case, case, which relate to potential conflicts of inter­ it might be timely to reconsider this question est in situations involving bank financing of as it applies to situations such as this, where the potential for a conflict of interest exists. Perhaps such a requirement might be imple­ 1With the limited exception of such matters as loans by banks to their own executive officers (Section 22 mented through the SEC’s rules and regulations. (g) of the Federal Reserve Act) and cases involving such If there is any way in which we might assist clear financial risk to the bank as to constitute “unsafe the committee in exploring any of these issues or unsound” banking practices (Section 8(b) of the Federal Deposit Insurance Act). further, we would be pleased to do so. □ Additional statements follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 231 Statement by Arthur F. Burns, Chairman, effectively used during the first quarter of 1975. Board of Governors of the Federal Reserve By the final quarter, utilization of capacity in System, before the Joint Economic Committee, these industries had climbed to 81 per cent, and February 19, 1976. it is now well above that average figure in industries such as textiles, where the recovery I am pleased to meet once again with the Joint of production has been especially rapid. Economic Committee to present the views of As we look back, it is clear that the consumer the Board of Governors on the condition of the led the way out of recession and into recovery. national economy. Early in 1975 when price concessions became A year ago, when I appeared at your hearings fairly common, consumer purchases began to on the Economic Report of the President, our pick up. Consumer buying was further but­ economy was already in the final stages of the tressed during the spring and summer months most severe recession of the postwar period. by tax rebates and supplementary social security Corrective forces—some internal to the econ­ checks. omy, others emanating from governmental pol­ Sustained demand for our exports also helped icies—were at work, and an upturn in business to pave the way for economic recovery. Of late, activity soon got under way. our foreign trade has increased substantially, Since last spring we have experienced a sub­ and export markets nowadays absorb about an stantial economic recovery. According to eighth of our total output of goods. The strong present indications, the physical volume of our competitive position achieved by the United Nation’s total production rose at an annual rate States in world markets during the past 2 or of 9 per cent during the second half of 1975. 3 years played an important role in cushioning The rebound of the industrial sector of our the recent decline of our economy. economy has been even stronger. Since last Thus, with sales to both foreigners and April the combined output of factories, mines, American consumers well maintained, business and power plants has increased at an annual rate firms were able to make good progress last year of 11.5 per cent. The advance was initially most in clearing their shelves of excess inventories. prominent in the textile, leather, paper, and By early summer, stocks had come into reason­ chemical industries; but the scope of the recov­ able balance with sales in most consumer lines, ery broadened in the fall and winter months and and many firms engaged in retail and wholesale now includes a wide range of durable as well trade therefore began to rebuild inventories. At as nondurable goods. the same time, the pace of inventory liquidation As production rose, the demand for labor slowed considerably in the manufacturing sec­ strengthened. With last month’s sizable gain, tor. For all nonfarm businesses liquidation of total employment across the Nation has risen inventories receded from an annual rate of about more than 2 million from its low point last $30 billion in the second quarter to a rate of March. This gain has been accompanied by a $6 billion in the third and fourth quarters of significant lengthening of the average work­ last year. This readjustment in business inven­ week, particularly in manufacturing and mining. tories has been a major factor in the recovery Meanwhile, the unemployment rate has come of our Nation’s production of goods and ser­ down from about 9 per cent to 7% per cent. vices. The number of individuals out of work still Last fall the rate of advance in economic remains deplorably high; but the new entrants activity slowed for a very brief period. But the or re-entrants into the labor force now account pace quickened toward the year-end, and the for a larger part of the unemployed total than economy entered 1976 on a strong upward 6 or 9 months ago, while job losers account trend. In December industrial output rose almost for a substantially smaller part. 1 per cent and another increase of 0.7 per cent The rate of utilization of our industrial plant occurred last month—with gains widely distrib­ has also risen. In the major materials industries uted among consumer goods, business equip­ only 70 per cent of available plant capacity was ment, and other major sectors. The market for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin □ March 1976 jobs also continued its improvement. In fact the row this year, because our own economic ex­ number of manhours worked in private nonfarm pansion will lead to an enlarged demand for industries increased at an annual rate of more imports—including products, such as petroleum than 8 per cent in December and January. and industrial supplies, that fell off sharply With employment and incomes rising swiftly, during the recession. consumers began buying more liberally, as is Business capital spending can also be ex­ evident from the recent surge in retail sales. In pected to contribute to economic expansion in December retail sales rose almost 3 per cent on the year ahead. Recent developments in this a seasonally adjusted basis, and they have con­ sector have been mixed. Production of business tinued at a high level since then. Sales of equipment has risen in each of the past 3 domestic automobiles last month reached the months—as sales of farm implements, mining highest level since August 1974. and oil field equipment, and some other kinds This upsurge of consumer spending has re­ of industrial machinery have advanced. Invest­ sulted in further reduction of business invento­ ment in new structures by public utilities has ries, so that the ratio of inventories to sales is also risen. Nevertheless, some indicators of now unusually low at most retail outlets and business capital spending remain rather weak. also at manufacturing establishments producing New orders for nondefense capital goods have nondurable goods. Businessmen are still reluc­ risen only modestly since last spring, and con­ tant to reorder in volume until they are more tract awards for commercial and industrial confident that recovery is taking hold. But with buildings have yet to show any improvement. sales continuing to increase, they will soon need Business fixed investment, however, often to rebuild inventories to levels consistent with lags behind other major categories of demand the improved pace of consumer buying. It during the early stages of a recovery. With rates should not be surprising if orders and production of capacity utilization increasing, corporate advance rather briskly in the months just ahead. profits moving up strongly, the stock and bond Indeed, accumulation of needed inventories may markets improving, and business confidence act as a significant stimulus to recovery gaining, we can reasonably expect considerable throughout most of this year. strengthening this year of business plans for Prospects for residential construction also buying new equipment and building new facili­ have improved. Prices of new homes remain ties—as normally happens in the course of a exceedingly high, and this is bound to limit the business cycle expansion. recovery in homebuilding. Of late, however, The precise magnitude of the recovery in builders have begun to place more emphasis on business investment outlays will depend to a smaller—or semifinished—homes, and thereby large degree on the vigor of consumer markets. have broadened their markets. The inventory of Businessmen across our land are still making unsold units—especially in the single-family plans for the future with great caution. While sector—has declined, and the vacancy rate for the recent improvement in consumer buying has rental units fell sharply during the final quarter been encouraging, the present more optimistic of last year. Furthermore, lenders are amply mood of consumers could be destroyed by a new supplied with funds, and mortgage credit is now burst of inflation. Any resurgence in the pace readily available. Over the course of 1976, of inflation this year would pose a threat to housing starts are therefore likely to extend consumer and business confidence and thus to significantly the gains already made during the further recovery of economic activity that 1975. is so urgently needed. Exports, too, will probably register further Our Nation made notable progress last year improvement this year. Economic recovery is in reducing the rate of inflation. The rise in finally under way in Japan and other industrial consumer prices came down to 7 per cent, about countries, and as it gathers momentum, the half the rate recorded in 1974. The rise in demand for our exports should intensify. How­ wholesale prices slowed down even more. Some ever, the foreign trade balance is likely to nar­ of this improvement stemmed from the absence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 233 of powerful special factors—such as the quad­ only for workers who are now unemployed but rupling in prices of imported oil, short supplies also for those who will soon be entering the of agricultural commodities, and the termination labor force. of wage and price controls, all of which drove In the current inflationary environment, the up prices in 1974. However, the slowdown in conventional tools of stabilization policy cannot the rate of price advance last year—particularly be counted on to restore full employment. Re­ during the first half—also reflected slack de­ cent experience both in our own and other mand in product markets and increased compet­ industrial countries suggests that once inflation itive pressures. has become ingrained in the thinking of a na­ The progress made in 1975 on the price front tion’s businessmen and consumers, highly ex­ still left us a long way from our national goal pansionist monetary and fiscal policies do not of general price stability. Moreover, some wor­ have their intended effect. In particular, instead sening seems to have taken place in recent of fostering larger consumer spending, they may months in the rate of inflation. Since the middle lead to larger precautionary savings and sluggish of 1975, wholesale prices of industrial com­ consumer buying. The only sound fiscal and modities have increased on the average at an monetary policy today is a policy of prudence annual rate of more than 8 per cent, compared and moderation. with 3.5 per cent in the first half of last year. One of the urgent tasks facing our Nation is The advance of consumer prices has quickened to end the persistent Federal deficits that have only a little—from an annual rate of 6.6 per been a major source of our inflationary problem. cent in the first half of 1975 to 7.5 per cent Since 1960 the Federal budget has been in in the final 6 months. Even so, the apparent deficit in every year but one. The cumulative reversal of the trend toward lower price in­ deficit in the unified budget over the past 10 creases is a troublesome sign. years, including the official estimate for the The trend of wage increases, while under­ current fiscal year, comes to $217 billion. If the standable, is also disturbing. Last year wage spending of off-budget agencies and Governrates rose on the average by 8 per cent—far ment-sponsored enterprises is taken into ac­ above the long-term rate of growth in produc­ count, the aggregate deficit for the 10 years tivity. This year major collective bargaining amounts to almost $300 billion. agreements covering almost twice as many This sorry record of deficit financing means, workers as in 1975 will need to be negotiated. of course, that we as a people have been un­ If wage settlements in major industries exceed willing to tax ourselves sufficiently to finance those of 1975—when wage and benefit increases the recent sharp increases of governmental for the first year already averaged around 11 spending. In this bicentennial anniversary of our per cent—a new explosion of wages, costs, and Nation’s independence, we would do well to prices may be touched off. reflect on the fact that it took all of 186 years Some step-up in the rate of inflation was for the annual total of Federal expenditures to perhaps unavoidable in view of the vigor of reach the $100 billion mark. This occurred in economic recovery. As the recovery proceeds, fiscal year 1962. Only 9 years later, in fiscal however, it is clearly the responsibility of Gov­ 1971, expenditures already exceeded $200 bil­ ernment to manage economic policies so that lion. Four years from that date*, in fiscal 1975, a new wave of inflation is avoided. the $300 billion mark was passed. And unless Our country is now confronted with a serious expenditures are held under a very tight rein, dilemma. Over 7 million people are still unem­ Federal spending will easily exceed the $400 ployed. Many of them have been seeking work billion level in fiscal 1977. for an extended period; the average duration of The President’s budgetary program for the unemployment is nearly 17 weeks. The hardship coming fiscal year, taken on an over-all basis, created by unemployment has increased for would go far toward breaking the spiral of those whose unemployment benefits have been Federal spending, which has been so largely exhausted. More jobs are clearly needed—not responsible for the 10-year stretch of inflation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Federal Reserve Bulletin □ March 1976 that culminated in the deep recession from associated with higher rates of interest or devel­ which we are now emerging. The proposed oping shortages of credit—as some critics of budget would limit the rise of spending in fiscal Federal Reserve policy had predicted. On the 1977 to 5.5 per cent, compared with an average contrary, conditions in financial markets have yearly increase of 12 per cent over the previous continued to ease and are more comfortable now 5 years. The Federal deficit is projected to than at any time in the past 2 years. decline from $76 billion in the current fiscal There is a striking contrast between the year to $43 billion in the next, with a balanced movement of interest rates during the current budget finally in view by fiscal 1979. recovery and their behavior in past cyclical Some well-meaning citizens are now urging upswings. Short-term interest rates normally the Congress to provide added fiscal stimulus begin to move up at about the same time as in the interest of speeding the return to full the upturn in general business activity, although employment. I would warn this committee that the rise varies from one cycle to another. In still larger Federal expenditures and a bigger the current economic upswing, a vigorous re­ deficit may fail of their purpose. A deeper deficit bound of activity, a continuing high rate of would require the Treasury to rely more heavily inflation, and a record volume of Treasury bor­ on credit markets, thus drawing on funds badly rowing might well have been expected to exert needed for homebuilding and business capital strong upward pressures on short-term interest formation. Worse still, a significantly larger rates. However, after some run-up in the sum­ deficit would revive fears of accelerating infla­ mer months of last year, short-term rates turned tion and would weaken the confidence of busi­ down again last fall and since then have declined nessmen and consumers that is essential to the to the lowest level since late 1972. Long-term restoration of general prosperity. rates have also moved down; yields on high- Moderation in monetary policy is also needed grade new issues of corporations are now at their to bolster confidence in the economic future. lowest level since early 1974. That is why the Federal Reserve has been so Conditions in financial markets thus remain diligently seeking to foster a financial climate favorable for economic expansion. Interest rates conducive to a satisfactory recovery, but at the are generally lower than at the trough of the same time to minimize the chances of rekindling recession. Savings flows to thrift institutions are inflationary fires. still very ample, and commitments of funds to Since last spring, growth rates of the major the mortgage market are continuing to increase. monetary aggregates—while varying widely Mortgage interest rates are therefore edging from month to month—have generally been down. within the ranges specified by the Federal Re­ Moreover, the stock market has been staging serve in its periodic reports to the Banking a dramatic recovery. The average price of a Committees of the Congress. On a seasonally share on the New York Stock Exchange at adjusted basis, the quarterly average level of present is about 60 per cent above its 1974 low. —that is, currency plus demand deposits A large measure of financial wealth has thus held by the public—rose over the last three been restored to the millions of individuals quarters of 1975 at an annual rate of 5.7 per across our land who have invested in common cent. M2, which also includes time and savings stocks. Besides this, the advance in stock prices deposits at commercial banks other than large has made it considerably easier for many firms certificates of deposit, rose at a rate of 9 per to raise equity funds for new investment pro­ cent. A still broader monetary composite, M3, grams or for restoring their capital cushions. which also includes deposits at thrift institu­ In general, the liquidity position of our Na­ tions, rose at a rate of 12 per cent. tion’s financial institutions and business enter­ These increases in the monetary aggregates prises is now much improved. Corporations were accompanied, as we expected, by a sharp issued a record volume of long-term bonds last rise in the turnover of money balances. The year and used the proceeds to repay short-term rising velocity of money has not, however, been debts and to acquire liquid assets. Commercial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 235 banks reduced their reliance on volatile funds facilities at banks, increased use of credit cards, and added a large quantity of Federal securities the growth of negotiable order of withdrawal to their asset portfolios. The liquidity position (NOW) accounts in New Hampshire and Mas­ of savings banks and savings and loan associa­ sachusetts, the emergence of money market tions has likewise been strengthened. mutual funds, the development of telephonic The market for State and local government transfers of funds from savings to checking securities was, of course, adversely affected by accounts, and the growing use of savings de­ the New York City financial crisis. Even in this posits to pay utility bills, mortgage payments, market, however, interest rates are now well and other obligations. One very recent develop­ below their 1975 highs, and the volume of ment that has had a considerable downward securities issued has remained relatively large. influence on the level of demand deposits was The difficulties of New York City, moreover, the regulation issued by the banking agencies have had a constructive influence on the finan­ last November, which enabled partnerships and cial practices of State and local govern­ corporations to open savings accounts at com­ ments—as well as on other economic units— mercial banks in amounts of up to $150,000. throughout the country. The emphasis on sound The relatively slow rate of growth in demand finance that is now under way enhances the deposits during recent months has been watched chances of achieving a lasting prosperity in our carefully by the Federal Reserve. In view of country. the rather rapid pace of economic expansion, These notable accomplishments in financial the relative ease of financial markets, and the markets indicate, I believe, that the course of absence of any evidence of a developing short­ moderation in monetary policy pursued by the age of money and credit, we have been inclined Federal Reserve last year has contributed to to view the recent sluggish rate of expansion economic recovery. The Board was pleased to in as reflecting the influence of various learn that the Senate Banking Committee in its factors that are reducing the amount of narrowly recent “Report on the Conduct of Monetary defined money needed to finance economic ex­ Policy” agrees with this view. pansion. However, since it is impossible to Last spring when the Federal Reserve first project the scale on which further economies announced its projected growth ranges for the may be realized, we have taken steps to ensure monetary aggregates, concern was expressed by that the rate of monetary expansion does not some economists, as well as by some members slow too much or for too long. of the Congress, that the rates of monetary During the past 3 months or so, open market growth we were seeking would prove inade­ policies have therefore been somewhat more quate to finance a good economic expansion. accommodative in the provision of reserves to Interest rates would rise sharply, it was argued, the banking system. This has been reflected in as the demand for money rose with increased a decline of the Federal funds rate to around aggregate spending, and shortages of money and 4% per cent. Last month the discount rate was credit might soon choke off the recovery. lowered from 6 to 5% per cent. And on two We at the Federal Reserve did not share this occasions—in mid-October and again in late pessimistic view, and our judgment has been December—the Board reduced reserve require­ borne out by experience. We knew that the ments. These reductions were aimed principally turnover of money is apt to increase rapidly with at encouraging a further lengthening of the ma­ a return of confidence. We knew also that fi­ turities of time deposits at member banks, but nancial technology has been changing, that the they also released nearly $700 million of re­ innovative process has accelerated of late, and serves and thus enabled banks to support a that significant economies in the handling of higher level of money balances. cash balances were therefore being effected. In taking these steps, our objective has been The developments that have recently fostered to stay on a course of monetary policy that will economizing on the sums held as currency or continue to support a good rate of growth in demand deposits include the spread of overdraft output and employment, while avoiding ex­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin □ March 1976 cesses that would aggravate inflation and create directed against restraint of trade by business trouble for the future. As I indicated in testi­ firms and to improve the enforcement of such mony before the House Banking Committee laws. We also need to reassess the highly com­ earlier this month, the Federal Open Market plex governmental regulations affecting trans­ Committee has projected growth ranges of the portation and the many other laws and practices monetary aggregates for the year ending in the that impede the competitive process. fourth quarter of 1976 that differ only a little Fourth, governmental policies that affect from those announced previously. labor markets have to be reviewed. There are We believe that the monetary growth ranges grounds for thinking that the Federal minimum we have projected will prove adequate to fi­ wage law is pricing many teenagers out of the nance a good expansion of economic activity job market, that the Davis-Bacon Act is serving in 1976. But the uncertainties that at present to escalate construction costs, and that programs surround monetary developments, particularly for income maintenance now provide benefits the behavior of Ml9 will require a posture of on such a generous scale that they may be exceptional vigilance and flexibility by the Fed­ blunting incentives to work. High unemploy­ eral Reserve in the months ahead. ment and numerous job vacancies still exist side Before closing I would remind this committee by side—perhaps because job seekers are un­ that fiscal and monetary policies alone cannot aware of the opportunities, or because the skills be expected to achieve our economic goals in of the unemployed are not suitable, or for other the current economic and financial environment. reasons. Better results could be achieved with Structural policies can make a significant con­ more effective job banks, more realistic training tribution to the restoration of full employment programs, and other labor market policies. and also to correcting the long-run inflationary Finally, we need to think through the appro­ bias in our economy. In the time remaining, priate role of a limited incomes policy in the let me briefly sketch several lines of attack that present environment. Recent experience has seem promising. emphatically demonstrated that lasting benefits First, governmental efforts are long overdue cannot be expected from comprehensive or to encourage improvements in productivity mandatory wage and price controls. However, through larger investment in modern plant and a policy that would permit modest delay in key equipment. This objective would be promoted wage or price increases, thus creating opportu­ by overhauling the structure of Federal taxation nity for quiet governmental intervention or for so as to increase incentives for business capital public hearings and the mobilization of public spending and for equity investments in Ameri­ opinion, may yet be of significant benefit in can enterprises. reducing abuses of private economic power and Second, we should face up to the fact that moving our Nation toward the goal of full environmental and safety regulations have in employment and a stable price level. recent years run up costs and prices and have Under current conditions, the return to full held up industrial construction across our land. employment will have to depend rather heavily Progress toward full employment and price sta­ on policies that serve to reinvigorate competi­ bility would be hastened by stretching out the tion and release the great energies of our people. timetables for achieving our environmental and That is why structural aspects of our economy safety goals. deserve more attention from members of the Third, a vigorous search should be made for Congress and other students of public policy ways to enhance price competition among our than they are as yet receiving. In the Board’s business enterprises. The Congress is to be judgment, wise structural policies in conjunc­ commended for putting an end to the so-called tion with moderate fiscal and monetary policies fair trade laws. It would be desirable to go offer the best hope for the attainment of a lasting further and reassess the entire body of laws prosperity. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 237 Statement by Philip C. Jackson, Jr., Member, lending had been present during the second half Board of Governors of the Federal Reserve of 1974. System, before the Committee on Banking, The requirements of the Civil Rights Act of Housing, and Urban Affairs, U.S. Senate, 1968 are included in the System’s training for March 11, 1976. its examiners. Each bank examined is checked for compliance with the act as part of our normal Mr. Chairman, I am pleased to present this examination routine. This is done in connection statement on behalf of the Board of Governors with our responsibility for enforcement of a concerning its activities pursuant to Sections wide range of other statutes applicable to State 805 and 808(c) of Title VIII of the 1968 Civil member banks. Rights Act. The Board of Governors actively works to The Board has responded by letter at some prevent discriminatory lending practices in a length to a number of questions that the com­ much broader context than that provided by mittee has asked. Should the committee have Title VIII of the 1968 Civil Rights Act. As the further questions, we would be pleased to re­ committee knows, the Board is the agency spond to them. responsible for regulations under the Home The Board has viewed affirmatively its re­ Mortgage Disclosure Act and the Equal Credit sponsibilities to foster nondiscriminatory lend­ Opportunity Act of 1975. This latter act pres­ ing practices in the financing of housing by State ently provides that no applicant shall be dis­ member banks under its supervision. The Board criminated against in any aspect of any credit has worked with the Secretary of Housing and transaction due to the applicant’s sex or marital Urban Development and other agencies in the status. The Board’s responsibilities under the Secretary’s role as the principal agent for en­ Equal Credit Opportunity Act would be ex­ forcement of this title of the act. We have also panded to cover additional bases of discrim­ worked in a positive way toward securing rec­ ination under bills presently being considered ognition by member banks of nondiscriminatory by the Congress. These bases include race, lending policies in the financing of housing as color, religion, or national origin, all of which a proper role for all institutions. were part of the original prohibitions of the Civil Very few complaints have been received by Rights Act. The provisions of the Equal Credit the Federal Reserve System to date regarding Opportunity Act would also be amplified to possible violations by State member banks of include the beneficiaries of public assistance and the statute. In those instances where complaints those persons who utilize the benefits of the have been received, the Board has investigated consumer credit protection statutes. the nature of the complaint. It has worked in In its implementation of the Equal Credit the spirit of this title of the civil rights statute Opportunity Act, the Board will pursue the goal toward conciliating any differences that may of nondiscrimination not only in housing credit have arisen and has not found it necessary to but in all of the credit transactions covered under initiate any formal proceedings against any that act. If, as we expect, the Equal Credit lender that was the subject of a complaint. Opportunity Act amendments come to fruition, The Board has worked toward a better factual we foresee a need to revise the implementation understanding of the degree of possible dis­ of Title VIII of the 1968 Civil Rights Act in criminatory lending practices that may exist in order to broaden the scope of our enforcement residential lending. Unfortunately, our partici­ efforts. To do so may call for fresh approaches pation in a large study of residential lending toward enforcement that can be better under­ practices did not produce conclusive findings as stood after the new requirements are legislated to whether or not discrimination in mortgage and regulations are adopted covering them. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

239 Record of Policy Actions of the Federal Open Market Committee M EETING HELD ON JANUARY 20, 1976 Domestic Policy Directive The information reviewed at this meeting suggested that output of goods and services (real gross national product) had expanded at an annual rate of about 5.5 per cent in the fourth quarter of 1975—compared with a rate of about 12 per cent in the third quarter—and that the rise in prices had been somewhat less rapid than the average rate over the first three quarters of the year. Staff projections suggested that growth in output would moderate some­ what further in the first half of 1976 and that the rate of increase in prices would change little. In December retail sales had risen sharply, according to the advance report, reflecting a strong increase in sales of automobiles and widespread gains in sales among other categories of goods; however, the increase in the fourth quarter as a whole was less than that in the third quarter. The rise in industrial production and in nonfarm payroll employment, which had slowed over the pre­ ceding 2 months, accelerated in December, and the average work­ week in manufacturing lengthened considerably. However, the unemployment rate remained at 8.3 per cent, as growth in the civilian labor force about matched that in total employment. The index of average hourly earnings for private nonfarm pro­ duction workers was unchanged in December, following 2 months of large increases, and the rise during the fourth quarter was slightly less than that during the third quarter. Increases in wholesale prices of industrial commodities were pervasive in December, as in November, and the over-all rise remained relatively large. How­ ever, average wholesale prices of farm products and foods declined sharply further. In November the rise in the consumer price index had continued at the accelerated pace of October, in large part because of substantial increases in prices of services. Staff projections of real output in the first half of 1976 were similar to those of 5 weeks earlier. They suggested that consump­ tion expenditures would expand at a moderate pace, that residential Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 Federal Reserve Bulletin □ March 1976 construction and business fixed investment would continue to re­ cover, and that business inventory accumulation would be at a moderate rate. However, exports were projected to rise less than imports. The exchange value of the dollar against leading foreign curren­ cies held steady in December, but in early January it eased some­ what, mainly in response to declines in U.S. interest rates. In November both merchandise exports and imports changed little, and the foreign trade surplus was again sizable. Total loans and investments at U.S. commercial banks—which had expanded considerably in November—declined appreciably in December. Banks again added to their holdings of Treasury securi­ ties, but holdings of other securities and outstanding loans to businesses declined. The outstanding volume of commercial paper issued by nonfinancial corporations increased only a little, and total short-term business borrowing declined. During the period from mid-December to mid-January most banks reduced the prime rate applicable to large business borrowers from IV4 to 7 per cent, and one major bank reduced it to 6% per cent. Mi declined in December, and growth in M2 and M3 slowed considerably.1 At commercial banks, inflows of time and savings deposits other than large-denomination CD’s slackened, while inflows of deposits to nonbank thrift institutions were relatively well maintained. Some portion of the inflows of such deposits to banks in December, as in November, was attributable to expansion in business accounts resulting from amendments to Federal Reserve regulations, effective November 10, that permitted corporations, partnerships, and other profitmaking organizations to maintain savings accounts of up to $150,000 at member banks. To a considerable extent the funds placed in these business savings accounts appeared to have been shifted out of demand deposits. On the basis of quarterly average data, grew at an annual rate of about 2Vi per cent in the fourth quarter, compared with a rate of about 7 per cent in the third quarter. M2 and M3, respectively, grew at annual rates of about 6V2 and 8V2 per cent 1M1 is composed of private demand deposits and currency in circulation; M2 includes Mx and commercial bank time and savings deposits other than large-de­ nomination CD’s; and M3 includes M2 and deposits at nonbank thrift institutions (savings and loan associations, mutual savings banks, and credit unions). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 241 in the fourth quarter, compared with rates slightly above 10 and 13 per cent in the preceding quarter.2 On December 24 the Board of Governors announced a reduction from 3 per cent to 2xh per cent in reserve requirements on time deposits maturing in 180 days to 4 years. The action—which released about $320 million in reserves to the banking system in the week beginning January 8—was in line with previous Board decisions designed to encourage member banks to lengthen the structure of their deposit liabilities. System open market operations in the inter-meeting period had been guided by the Committee’s decision to maintain the bank reserve and money market conditions prevailing at the time of the December meeting, provided that monetary aggregates appeared to be growing at about the rates then expected. Data that became available week by week after the December meeting suggested that in the December-January period Mx and M2 would grow at rates below the lower limits of the ranges of tolerance that had been specified by the Committee. Accordingly, near the end of De­ cember, the System began to direct operations toward some easing in bank reserve and money market conditions. By January 12 the Federal funds rate had declined from the neighborhood of 5 lA per cent—the level prevailing at the time of the December meeting—to an area of 43A to 47s per cent. The range that had been specified by the Committee was 4Vi to 5% per cent. Subsequently, a majority of Committee members concurred in Chairman Burns’ recommendation of January 12 that the Manager be instructed to hold the weekly-average Federal funds rate at the approximate level of 43A per cent until the time of this meeting. In the remaining days, the rate was close to 43A per cent. Both short- and long-term market interest rates declined appre­ ciably over the inter-meeting period, in response to System policy actions and to a growing view among participants in financial markets that credit demands in the months ahead would not be 2Revised measures of the monetary aggregates, reflecting new benchmark data for deposits at nonmember banks and revised seasonal factors, were published on Jan. 22, 1976. On the basis of the revised figures, fourth-quarter growth in M2 and M3 was at annual rates of about 6 and 9 per cent, respectively; fourth-quarter growth in Mi remained at about 2Vi per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 Federal Reserve Bulletin □ March 1976 so large as to place strong upward pressures on interest rates. On the day before this meeting the market rate on 3-month Treasury bills was 4.87 per cent, down from 5.51 per cent on the day before the December meeting. Effective January 19, Federal Reserve discount rates were reduced from 6 to 5Vi per cent at 11 Reserve Banks; shortly afterward, the rate was reduced at the remaining Bank. At this meeting the Committee reviewed the 12-month ranges— covering the period from the third quarter of 1975 to the third quarter of 1976—that had been agreed upon at the October meeting and considered the ranges that would be appropriate for the period from the fourth quarter of 1975 to the fourth quarter of 1976. In the discussion, it was noted that from the third to the fourth quarter of 1975 rates of growth in the monetary aggregates, partic­ ularly Mi, had fallen short of the 12-month ranges adopted at the October meeting. It was also noted, however, that from March to June and from the second-quarter average to the third-quarter average monetary growth had been somewhat high relative to the ranges that had been specified by the Committee in April and July, respectively. From both March and the second-quarter average to the fourth-quarter average, growth in Mu M2, and M3 was, respec­ tively, around the lower end, near the middle, and around the upper end of the ranges that had been specified earlier. Moreover, a part of the fourth-quarter shortfall in growth of Mt appeared to be attributable to a decline in the demand for checking deposits, especially because of the shift in business deposits from demand accounts to savings accounts. Businesses were expected to continue to substitute savings accounts for demand deposits over the year ahead, although at a slower pace than in recent weeks. For that reason, and also because of other indications that demand deposits were being used more efficiently, the Committee decided to reduce the lower limit of the longer-run range specified for M1 from 5 per cent to 4Vi per cent. Thus, the range specified for was 4Vi to IV2 per cent. The ranges specified for M2 and M3—namely, IV2 to IOV2 per cent and 9 to 12 per cent, respectively—were unchanged from those adopted in October. The associated range for growth in the bank credit proxy was 6 to 9 per cent. It was understood that the longer-term ranges, as well as the particular list of aggregates for which such ranges were specified, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 243 would be subject to review and modification at subsequent meet­ ings. It was also 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. In the discussion of current policy at this meeting, the Committee took note of a staff analysis suggesting that for the period immedi­ ately ahead uncertainty about the behavior of the demand for money was greater than usual. The extraordinary rise in the turnover (income velocity) of that had occurred so far in this economic recovery seemed unlikely to continue; thus, the projected increase in nominal GNP could lead to a strengthening of the demand for demand deposits and currency, even though business savings ac­ counts were expected to grow further. The staff analysis suggested that basic factors accounting for the sharp reduction in the demand for money relative to income in the latter half of 1975 were not fully understood; thus, there was considerable uncertainty as to the timing, strength, and duration of any rebound in money demand. In particular, it was difficult to assess how rapidly the public would take advantage of the continuing improvements in financial technology—such as the availability of savings accounts to businesses and of telephonic transfer between savings and demand accounts—that were facili­ tating economization of cash balances. Finally, an internal staff review of seasonal adjustment procedures indicated that alternative, reasonable methods of adjustment produced significantly different seasonal factors for individual months and for 2-month periods. Because the money stock was subject to a variety of transitory influences, seasonal factors were uncertain and the significance of short-run variations in growth rates within a fairly wide range was limited. In view of the current uncertainties regarding the behavior of the monetary aggregates, many members advocated that the Com­ mittee continue to give greater weight than usual to money market conditions in conducting open market operations in the period until the next meeting and that it specify 2-month ranges of tolerance for growth in the monetary aggregates that were wider than usual. Some members preferred to give greater emphasis to variations in the behavior of the monetary aggregates relative to expectations, and the suggestion was also made that more weight be given to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 Federal Reserve Bulletin □ March 1976 the behavior of M2 relative to that of Mx than had been the case in the past. The Committee decided that operations in the period immediately ahead should be directed toward maintaining the bank reserve and money market conditions now prevailing, provided that monetary aggregates appeared to be growing at rates not far from those currently expected. The members concluded that growth in and M2 over the January-February period at annual rates within ranges of tolerance of 4 to 9 per cent and 7 to liy2 per cent, respectively, would be acceptable.3 Mainly because the outstanding volume of large-denomination CD’s was projected to decline substantially over the 2-month period, it was expected that these growth rates for the monetary aggregates would be associated with an annual rate of decline in reserves available to support private nonbank deposits (RPD’s) between 2 and 7 per cent. The ranges of tolerance were wider than those customarily specified. It was contemplated that System operations until the next meeting would be directed toward maintaining the weekly-average Federal funds rate at about its current level of 4% per cent, unless rates of growth in the monetary aggregates appeared to be approaching the limits of their specified ranges. The members agreed that, should the aggregates appear to be deviating significantly from expecta­ tions, the weekly-average funds rate might be expected to vary in an orderly fashion within a range of 4xk to 5 per cent. 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 increased very sharply in the third quarter of 1975—expanded more moderately in the fourth quarter. In December retail sales rose sharply, but the increase in the fourth quarter as a whole was less than that in the third quarter. After having slowed over the preceding 2 months, the rise in industrial production and in nonfarm payroll employment acceler­ ated in December. However, the unemployment rate remained at 8.3 per cent, as the civilian labor force grew about as much as total employment. The increase in average wholesale prices of 3 The ranges of tolerance were based on the new seasonal adjustment factors published on Jan. 22, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 245 industrial commodities was again relatively large, but average prices of farm products and foods declined sharply further. The index of average wage rates was unchanged in December, following 2 months of large increases. The exchange value of the dollar against leading foreign curren­ cies held steady in December but eased somewhat in early January. Another sizable foreign trade surplus was registered in November. Mx declined in December, and growth in M2 and M3 slowed considerably. At commercial banks, inflows of time and savings deposits other than large-denomination CD’s slowed, despite a continuing build-up of business savings accounts, while inflows of deposits to nonbank thrift institutions were relatively well main­ tained. In terms of quarterly averages, growth in Mx from the third to the fourth quarter was modest, while growth in M2 and M3 was more substantial. In recent weeks interest rates on both short- and long-term securities have declined appreciably. In mid-January Federal Reserve discount rates were reduced from 6 to 5Vi per cent. 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 infla­ tionary pressures and contributing to a sustainable pattern of inter­ national transactions. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to maintain prevailing bank reserve and money market conditions over the period immediately ahead, provided that monetary aggre­ gates appear to be growing at about the rates currently expected. Votes for this action: Messrs. Burns, Volcker, Baughman, Coldwell, Eastburn, Holland, Jackson, MacLaury, Mayo, Mitchell, Partee, and Wallich. Votes against this action: None. * * Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released about 45 days after the meeting and are subsequently published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

247 Law Department Statutes, regulations, interpretations, and decisions State Taxation of Depositories Act procedures as the Board may prescribe therefor, notwithstanding that after such act or omission has An Act of Congress approved February 27, occurred, such rule, regulation, interpretation, or 1976, extended the State Taxation of Depositories approval is amended, rescinded, or determined by Act and amended the Truth in Lending Act. judicial or other authority to be invalid for any reason.”. An Act (c)(1) Section 167(a) of the Truth in Lending To Extend the State Taxation of Depositories Act (15 U.S.C. 1666f) is amended by inserting Act. “(1)” immediately after “(a)” and by adding at the end thereof the following new paragraph: Be it enacted by the Senate and House of “(2) No seller in any sales transaction may Representatives of the United States of America impose a surcharge on a cardholder who elects in Congress assembled, That subsection (c) of the to use a credit card in lieu of payment by cash, State Taxation of Depositories Act (section 7(c) check, or similar means.”. of Public Law 93-100) is amended by striking out (2) The amendment made by paragraph (1) shall “January 1, 1976” and inserting in lieu thereof cease to be effective upon the expiration of three “September 12, 1976”. years after the date of enactment of this Act. Sec. 2. Section 2(a) of Public Law 93-100 (12 (d) Section 171 of the Truth in Lending Act U.S.C. 1832(a)) is amended by inserting after (15 U.S.C. 1666j) is amended by adding at the “Massachusetts” a comma and the following: end thereof the following new subsection: “Connecticut, Rhode Island, Maine, Vermont,”. “(c) Notwithstanding any other provisions of Sec. 3. (a) Section 103 of the Truth in Lending this title, any discount offered under section 167(b) Act (15 U.S.C. 1602) is amended by redesignating of this title shall not be considered a finance charge subsections (p), (q), and (r) as subsections (r), (s), or other charge for credit under the usury laws and (t), respectively, and by adding after subsec­ of any State or under the laws of any State relating tion (o) the following: to disclosure of information in connection with “(p) The term ‘discount’ as used in section 167 credit transactions, or relating to the types, means a reduction made from the regular price. amounts or rates of charges, or to any element The term ‘discount’ as used in section 167 shall or elements of charges permissible under such laws not mean a surcharge. in connection with the extension or use of credit. ’ ’ “(q) The term ‘surcharge’ as used in section 103 and section 167 means any means of increas­ Membership of State Banking ing the regular price to a cardholder which is Institutions in the Federal Reserve System imposed upon customers paying by cash, check, or similar means.”. The Board of Governors has amended its Regu­ (b) Section 130(f) of the Truth in Lending Act lation H to implement a grace period concerning (15 U.S.C. 1640(f)) is amended to read as follows: real estate loans made by State member banks in “(f) No provision of this section or section 112 identified flood hazard areas of communities that imposing any liability shall apply to any act done are not participating in the National Flood Insur­ or omitted in good faith in conformity with any ance Program. rule, regulation, or interpretation thereof by the Effective February 26, 1976, section Board or in conformity with any interpretation or 208.8(e)(5) is amended as follows: approval by an official or employee of the Federal Section 208.8—Banking Practices Reserve System duly authorized by the Board to issue such interpretations or approvals under such % 4s H5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 Federal Reserve Bulletin □ March 1976 (e) Loans by State member banks in identi­ United States residents exceeding $1 million, (3) fied flood hazard areas. to enable the borrower to comply with the re­ quirements of the Office of Foreign Direct Invest­ ments, Department of Commerce,8 (4) under binding commitments entered into before May 17, (5) * * * Provided, that the prohibition contained 1973, or (5) to an institution that will be main­ in this section shall not apply to any loan made taining reserves on such credit under § 204.5(c) prior to March 1, 1976, if the loan is made to of Regulation D or § 211.7(c) of Regulation K finance the acquisition of a previously occupied or to a foreign-owned banking institution that will residential dwelling. voluntarily be maintaining member bank reserves on such credit. Foreign Activities of National Banks 8 *** The Board of Governors has amended its Regu­ lation M to prevent duplication of Euro-dollar Interest on Deposits reserve requirements when a foreign branch lends to a corporation operating under section 25 or The Board of Governors has amended its Regu­ 25(a) of the Federal Reserve Act that is maintain­ lation Q in light of recent legislation authorizing ing reserves on such credit under § 211.7(c) of negotiable orders of withdrawal (NOW) accounts Regulation K, and when a foreign branch lends in the States of Maine, Connecticut, Rhode Island, to a foreign-owned U.S. banking institution that and Vermont. is voluntarily maintaining member bank reserves Effective March 1, 1976, sections 217.1(e), on such credit pursuant to the Board’s requests 217.5(c) and 217.6(i) are amended to read as of June 1, 1973 and April 9, 1975. follows: Effective February 6, 1976, section 213.7(b) is Section 217.1 —Definitions amended to read as follows: Section 213.7—Reserves Against Foreign Branch Deposits (e) Savings deposits (3) In those States where banks are permitted (b) Credit extended to United States resi­ to offer deposits subject to negotiable orders of dents. During each week of the four-week period withdrawal, such deposits may be maintained if beginning May 22, 1975, and during each week such deposits consist of funds deposited to the of each successive four-week maintenance period, credit of or in which the entire beneficial interest a member bank having one or more foreign is held by one or more individuals, or a corpora­ branches shall maintain with the Reserve Bank of tion, association, or other organization operated its district, as a reserve against its foreign branch primarily for religious, philanthropic, charitable, deposits, a daily average balance equal to 4 per educational, fraternal, or other similar purposes, cent of the daily average credit outstanding from and not operated for profit. Deposits in which any such branches to United States residents7 (other beneficial interest is held by a corporation, part­ than assets acquired and net balances due from nership, association or other organization operated its domestic offices) during the four-week compu­ for profit or not operated primarily for religious, tation period ending on the Wednesday fifteen days philanthropic, charitable, educational, fraternal, or before the beginning of the maintenance period: other similar purposes may not be classified as Provided, That this paragraph does not apply to deposits subject to negotiable orders of with­ credit extended (1) in the aggregate amount of drawal. $100,000 or less to any United States resident, (2) by a foreign branch which at no time during the computation period had credit outstanding to Section 217.5— Withdrawal of Savings Deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 249 (c) Manner of payment of savings deposits Agriculture, the General Services Administration, the Nuclear Regulatory Commission, Energy Re­ search and Development Administration, the De­ (3) The provisions of this paragraph do noft ense Supply Agency, and the National Aeronau­ apply to deposits subject to negotiable orders of tics and Space Administration. withdrawal that are authorized by Federal law. Interpretation of Regulations K, M, and Y Section 217.6— Statement of Policy on State Interests in Foreign Advertising of Interest on Deposits Joint Ventures. In general, when a member bank or a corporation organized under § 25(a) of the Federal Reserve Act (an “Edge” corporation), or (i) Negotiable orders of withdrawal. In addi­ operating pursuant to an agreement with the Board tion to compliance with the other paragraphs of under § 25 thereof (an “Agreement” corporation), this section, member banks offering accounts sub­ or a bank holding company requests the Board’s ject to negotiable orders of withdrawal, to the specific consent to acquire the stock or other cer­ extent practicable, shall limit every advertisement, tificates of ownership of a foreign corporation that announcement or solicitation made in any news­ will be jointly-owned by the U.S. banking organi­ paper, magazine, radio, television or other media zation and other foreign or domestic participants to such facilities directed toward residents of the (hereinafter referred to as a “foreign joint ven­ States in which Federal law authorizes the issuance ture” 1), the Board considers, among other factors, of such accounts. All other advertisement, an­ the degree of legal and practical business respon­ nouncements and solicitations of such accounts, sibility the U.S. banking organization will bear including direct mailing, circulars, and notices, for the financial condition and operations of the whether written or oral, to the extent practicable, foreign joint venture in foreign and international shall be directed only to persons residing or em­ financial markets. In the Board’s judgment, this ployed in the States in which Federal law author­ factor, among others, is relevant in assessing what izes the issuance of accounts subject to negotiable effects the proposed investment may have on the orders of withdrawal and to persons who are financial and managerial resources of the applying customers of member banks in those States on the U.S. banking organization. effective date of this amendment. Based on the recent experience of certain foreign joint ventures in foreign and international Loan Guarantees for Defense Production financial markets, the Board has found that a U.S. banking organization may, in certain circum­ The Board of Governors has amended its Regu­ stances, feel impelled for business reasons to pro­ lation V to change the name of a guaranteeing vide financial support2 to a foreign joint venture agency in section 1. in which it has an equity interest in the event the Effective February 4, 1976, section 1 is venture has liquidity or other financial needs. This amended to read as follows: support may be subtantially in excess of the U.S. Section 1—Authority banking organization’s original equity investment This regulation is based upon and issued pursu­ ant to the Defense Production Act of 1950 (re­ 1The term “foreign joint venture” is used to describe a situation in which a U. S. banking organization with a minority ferred to in this regulation as the “Act”), and share interest participates, directly or indirectly, in the overall Executive Order No. 10480, dated August 14, management of the corporation and thus has an active operating interest. A purely passive minority investment in a foreign 1953 as amended (3 CFR 1949-1953 Comp., p. corporation will not be deemed a “joint venture” investment 962) referred to in this regulation as the “Order”), for purposes of this statement of policy. This “joint venture” and after consultation with the heads of the determination will be made on the basis of the facts and circumstances of each case. guaranteeing agencies designated in the Act and 2As used herein, the term “support” includes, without the Order, namely the Department of the Army, limitation, contributions to capital, purchase (or causing the the Department of the Navy, the Department of purchase) from the foreign corporation of loans or securities, making (or causing the making) of loans to the foreign cor­ the Air Force, the Department of Commerce, the poration, and the making (or causing the making) of deposits Department of the Interior, the Department of in the foreign corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 Federal Reserve Bulletin □ March 1976 and may, in some situations, be well in excess rata or otherwise with the other shareholders, or of its pro rata share. This has seemed most likely will otherwise be limited, the Board will consider to occur in situations where (1) the foreign joint the application and the risks associated therewith venture has included in its name a reference to on the basis of this additional information. In this the U.S. banking organization, (2) the U.S. bank­ regard, the Board will also consider the identity ing organization or its affiliates have consistently and financial strength of other partners and inves­ provided financial support to the foreign corpora­ tors in the venture and their respective ability to tion in amounts significantly beyond usual com­ provide support to the venture, if needed. mercial limits or significantly disproportionate to This statement of policy is not intended to its pro rata stock interest, or (3) as the result of prohibit or discourage investments by U.S. bank­ substantial managerial support furnished by the ing organizations in foreign joint ventures, which U.S. banking organization under a contract or can be a useful form of corporate organization in other arrangement, the foreign corporation has appropriate circumstances; rather, due to the diffi­ been publicly identified as or considered to be, culty of ascertaining the precise risks undertaken sometimes with the active encouragement of the . joint venture investments, its primary purpose U.S. banking organization, an integral part of the is to clarify for all parties concerned the probable U.S. banking organization’s international opera­ dimensions of risks assumed in any particular tions. investment. Thus, even if an applicant proposes Accordingly, the Board, in considering applica­ to assume a disproportionate share of the risks in tions by U.S. banking organizations to invest in any joint venture, e.g., agrees to stand behind foreign joint ventures, will, as a matter of policy, more than its pro rata share of the joint venture’s take into account the possibility that the applicant obligations, the Board might be willing to approve may feel impelled for business reasons to provide the investment if the applicant’s financial and financial support for such foreign joint venture in managerial resources could bear this additional the event the venture has liquidity or other finan­ risk and if other factors indicated that approval cial needs, and that such support could be signifi­ would be consistent with the public interest. cantly greater than the amount of its proposed The Board further notes that any action that it equity investment. The Board will, therefore, might take on an application should not be viewed consider such application in light of the relative or relied upon by the applying U.S. banking orga­ ability of the applicant to meet the demands that nization, other participants in the venture, or any such potential support could place on its financial third party as constituting approval or disapproval, and managerial resources. In doing so, the Board or ratification or rejection of any agreement or will take into consideration the risks associated arrangement that may have been entered into by with the total assets and liabilities of the foreign the shareholders of a foreign joint venture; speci­ joint venture and its projected expansion, and not fically, any Board action should not be viewed as merely the size of the proposed equity investment constituting any expression of judgment as to the by the applicant. In particular, the Board will give validity or enforceability of any such agreement great weight to these potential risks and their or arrangement. Any agreement or arrangement implications for the applicant in cases where the will, rather, be merely one among many factors applicant proposes (1) to include a reference to considered by the Board in deciding on an appli­ its name in that of the foreign joint venture, (2) cation. to provide general funding support to the foreign This statement is intended to apply primarily joint venture in amounts disproportionate to its pro to proposed investments by U.S. banking organi­ rata stock interest, or (3) to provide virtually all zations in the stock of foreign corporations in of the management for such foreign joint venture. which they do not already have an equity invest­ If, however, in the case of any such proposed ment. Applications involving an additional invest­ joint venture investment, the U.S. banking orga­ ment in an ongoing foreign joint venture will nization can establish in the record of its applica­ continue to be considered by the Board on the basis tion that it has reached an agreement or arrange­ of outstanding facts and circumstances. In the case ment whereby its support of the proposed joint of any ongoing foreign joint venture the Board venture in the event of liquidity or other financial will, of course, continue to consider carefully the needs will be limited to its initial equity investment amount of support, if any, that is being provided or to some fixed amount, or will be shared pro by the applicant to the venture and any agreement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 251 or arrangement among the joint venturers for the remains with the seller during the pendency of the provision of any future support. application; there are no other indicia that the applicant controls the shares held in escrow; and, Interpretation of Regulation Y in the event of a Board denial of the application, Escrow arrangements involving bank stock re­ the escrow agreement provides that the shares would be returned to the seller. sulting in a violation of the Bank Holding Com­ pany Act. In connection with a recent application Interpretations of Regulation Z to become a bank holding company, the Board considered a situation in which shares of a bank Timing and modification of semiannual state­ were acquired and then placed in escrow by the ments. Sections 226.7(d)(1) through 226.7(d)(4) applicant prior to the Board’s approval of the set out the method by which the statement required application. The facts indicated that the applicant by § 226.7(a)(9) is to be provided to customers company had incurred debt for the purpose of on a semiannual basis. Section 226.7(d)(5) pro­ acquiring bank shares and immediately after the vides for a shorter statement which, as an alterna­ purchase the shares were transferred to an unaffil­ tive to the provisions of §§ 226.7(d)(1) through iated escrow agent with instructions to retain 226.7(d)(4), may, under certain conditions, be possession of the shares pending Board action on provided with each periodic statement. the company’s application to become a bank hold­ The question has arisen of when the first state­ ing company. The escrow agreement provided ment, either the longer statement required by § that, if the application were approved by the 226.7(a)(9) or the alternate shorter statement under Board, the escrow agent was to return the shares § 226.7(d)(5), must be provided under § 226.7(d). to the applicant company; and, if the application Creditors must mail or deliver one or the other were denied, the escrow agent was to deliver the of these statements, pursuant to § 226.7(d), not shares to the applicant company’s shareholders later than seven months after October 28, 1975. upon their assumption of debt originally incurred In determining when to send the first statement by the applicant in the acquisition of the bank pursuant to § 226.7(d), the initial statements pre­ shares. In addition, the escrow agreement provided scribed by § 226.7(a)(9) which are sent to cus­ that, while the shares were held in escrow, the tomers with accounts in existence on October 28, applicant could not exercise voting or any other 1975, pursuant to § 226.7(i), may not be consid­ ownership rights with respect to those shares. ered a statement sent for purposes of § 226.7(d). On the basis of the above facts, the Board A second question has arisen regarding the concluded that the company had violated the prior timing of disclosures should a creditor change approval provisions of section 3 of the Bank practices and provide the statement under § Holding Company Act (“Act”) at the time that 226.7(d)(5) instead of the longer statement pre­ it made the initial acquisition of bank shares and scribed in § 226.7(a)(9). The same question has that, for purposes of the Act, the company contin­ arisen with respect to the opposite case, i.e., when ued to control those shares in violation of the Act. a creditor first makes disclosure under § In view of these findings, individuals and bank 226.7(d)(5) and subsequently decides to make holding companies should not enter into escrow disclosure of the statement prescribed by § arrangements of the type described herein, or any 226.7(a)(9) semiannually. If a creditor first dis­ similar arrangement, without securing the prior closes the § 226.7(a)(9) statement semiannually approval of the Board, since such action could and subsequently decides to use the § 226.7(d)(5) constitute a violation of the Act. alternative, the first statement which must be pro­ While the above represents the Board’s conclu­ vided pursuant to § 226.7(d)(5) must be mailed sion with respect to the particular escrow arrange­ or delivered not later than the time that the next ment involved in the proposal presented, the Board § 226.7(a)(9) statement would have been required does not believe that the use of an escrow ar­ had no change in the creditor’s practice occurred. rangement would always result in a violation of If a creditor first chooses to make disclosure pur­ the Act. For example, it appears that a transaction suant to § 226.7(d)(5) and subsequently decides whereby bank shares are placed in escrow pending to provide the longer statement prescribed in § Board action on an application would not involve 226.7(a)(9) semiannually, the creditor must mail a violation of the Act so long as title to such shares or deliver such longer statement to those customers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin □ March 1976 receiving periodic statements (not later than the prescribe statements regarding customers’ rights mailing or delivery of such periodic statements) and creditors’ responsibilities under certain sec­ pursuant to § 226.7(b) for the billing cycle imme­ tions of the Regulation. These statements contain diately subsequent to the billing cycle for which specific references to the “Federal Truth in Lend­ the last statements were mailed or delivered pur­ ing Act,” Federal Fair Credit Billing Act,” and suant to § 226.7(d)(5). The timing of mailing or the “Act.” delivery of § 226.7(a)(9) statements on a semian­ Certain States have adopted, or intend to adopt, nual basis subsequent thereto is to be determined regulations or statutes identical to the amendments in accordance with §§ 226.7(d)(1), (2), (3), and to Regulation Z adopted by the Board on Sep­ (4). tember 15, 1975, for the purpose of implementing A further question has arisen whether a creditor the Fair Credit Billing Act. The question has arisen may delete portions of the statement prescribed whether the statements prescribed by §§ in § 226.7(d)(5) which are inapplicable to its 226.7(a)(9) and 226.7(d)(5) may be modified particular credit plan as in the case of the statement under these circumstances to include a reference prescribed by § 226.7(a)(9). In line with the gen­ to the State law immediately following the relevant eral policy of the Truth in Lending Act and Regu­ reference to the Federal law, or whether separate lation Z which attempt to avoid disclosures which statements are required under both the State law might be confusing to consumers, any portions of and Federal laws. the § 226.7(d)(5) statement which are inapplicable In the circumstances described above, it is per­ to a credit plan may be deleted from the § missible for a creditor to modify the statements 226.7(d)(5) statement by the creditor of that plan. prescribed by §§ 226.7(a)(9) and 226.7(d)(5) in The question has also arisen whether references the form of a reference to the relevant State law to the “creditor” in the statement prescribed by by name. Such a disclosure, if made immediately § 226.7(d)(5) may be altered or modified as is following the relevant reference to the titled Fed­ permitted with regard to the statement prescribed eral law in substantially the following manner: by § 226.7(a)(9). Such alteration or modification “and the [insert the name of the State and the is permissible; wherever the word “creditor” ap­ State law involved],” is permissible under Regu­ pears or is referred to in the statement prescribed lation Z and any State law requiring such a disclo­ by § 226.7(d)(5), the creditor may substitute ap­ sure is not inconsistent with the Act or Regulation propriate references, such as “company,” within the meaning of § 226.6(b). It is similarly “bank,” “we” or a specific name. permissible to substitute “these Acts” for the Modification of semiannual statements pursuant words “the Act” where it appears in the statement to State law. Sections 226.7(a)(9) and 226.7(d)(5) required by § 226.7(a)(9). Bank H olding Company and Bank M erger Orders Issued by the Board of Governors Orders Under Section 3 through the retention of approximately 67 per cent of Bank Holding Company Act of the voting shares of Eastern Bancorporation, Philadelphia, Pennsylvania (“Eastern”), a regis­ Capital First Corporation, tered bank holding company presently owning 64 Philadelphia, Pennsylvania per cent of the voting shares of Bank. Applicant has also applied, pursuant to § 4(c)(8) Order Denying of the Act (12 U.S.C. 1843(c)(8)) and 225.4(b)(2) Formation of Bank Holding Company of the Board’s Regulation Y, for permission to Capital First Corporation (formerly Capital continue to engage in the activities of general Equipment Leasing Corporation), Philadelphia, equipment leasing on a full pay-out basis. Such Pennsylvania, has applied for the Board’s approval activities have been determined by the Board to under § 3(a)(1) of the Bank Holding Company Act be closely related to banking (12 CFR 225.4 (12 U.S.C. 1842(a)(1)) to remain a bank holding (a)(6)(a)), subject to the Board’s approval of indi­ company through the indirect retention of 64 per vidual applications. cent of the voting shares of State National Bank Notice of receipt of the applications, affording of Maryland, Rockville, Maryland (“Bank”), opportunity for interested persons to submit com­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 253 ments and views, has been given in accordance of its indirect interest would have no adverse effect with §§3 and 4 of the Act. The time for filing on competition and, therefore, competitive con­ comments and views has expired, and the Board siderations are consistent with approval of the has considered the applications and all comments application to remain a bank holding company. received in the light of the factors set forth in § Under the Bank Holding Company Act, the 3(c) of the Act (12 U.S.C. 1842(c)) and the Board is required to consider the financial and considerations specified in § 4(c)(8) of the Act (12 managerial resources and future prospects of the U.S.C. 1843(c)(8)). applicant and the bank to be acquired, and in the Applicant, along with another affiliated cor­ exercise of that responsibility the Board has indi­ poration (Aircraft Acceptance), is located on the cated on several occasions that an applicant should middle tier of a five-tiered network of affiliated be a source of financial strength for its subsidiary corporations in which all the corporations with the bank(s). On the basis of the facts of record on exception of Applicant and Bank (which is located this application, the Board is unable to conclude at the bottom of the structure) are registered bank that Applicant possesses the necessary financial holding companies. As part of an internal reor­ and managerial resources to warrant approval of ganization among the affiliated corporations, Ap­ the application to remain a bank holding company. plicant became a bank holding company without Even though Applicant became a bank holding the prior approval of the Board, as required by company as a result of a transfer from an affiliated section 3 of the Act, when Applicant received 50 corporation, the Board believes that Applicant per cent of the outstanding shares of Eastern from must satisfy the standards normally applied in State Bancshares, its parent, in exchange for a one-bank holding company formations. In the cancellation of an indebtedness. Subsequently, Board’s view, Applicant is unable to satisfy such Eastern issued additional shares to Applicant in standards. Although Bank reported profits for 1974 return for cash and the forgiveness of indebt­ and 1975, Applicant incurred significant losses edness. The present application is for the Board’s from its total operations during 1974 and indica­ permission to remain as a bank holding company. tions are that there will be no significant change While Applicant became a bank holding company in 1975. Although Bank is in generally satisfactory without the Board’s prior approval, the Board has condition, it is clear that, in view of its present nonetheless considered the present application financial condition, Applicant is not in a position and, even absent the fact that the transaction was to render any meaningful assistance to Bank if the in violation of the Act, is of the view that other need should arise. Accordingly, on the basis of facts of record indicate that the application to the foregoing and other facts of record, the Board remain a bank holding company should be denied. is of the view that considerations relating to the As noted above, Applicant is a bank holding financial and managerial resources are sufficient to company by virtue of its indirect interest in Bank.1 warrant denial of the subject proposal. Bank, with deposits of about $44.9 million,2 con­ With respect to other considerations reflected trols less than one per cent of the total deposits in the record, there is no indication that the transfer in commercial banks in the relevant banking mar­ of the indirect interest in Bank to Applicant re­ ket,3 and is one of the smaller banks in the market. sulted in any significant changes in Bank opera­ Since Applicant has no other banking interest and tions or services. Accordingly, considerations re­ the transaction whereby Applicant became a bank lating to the convenience and needs of the com­ holding company did not alter the position of Bank munity to be served do not outweigh the adverse in the market, it appears that Applicant’s retention factors specified hereinabove. On the basis of all the circumstances concerning this application, the Board concludes that the fi­ nancial considerations involved in the proposal present adverse factors bearing on the financial 1In addition to its indirect interest in Bank, Applicant has condition and prospects of Applicant. Such ad­ been engaged in general equipment lease financing domesti­ verse factors are not outweighed by any procomcally since 1967 and through a Brazilian subsidiary since 1972. An application for the retention of this Brazilian subsidiary petitive effects or by benefits which would result has been denied by the Board, effective February 11, 1976. in serving the convenience and needs of the com­ 2 All banking data are as of June 30, 1975. munity. Accordingly, it is the Board’s judgment 3 The relevant banking market is approximated by the Wash­ ington, D.C. SMSA (Standard Metropolitan Statistical Area). that approval of the application would not be in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin □ March 1976 the public interest and that application for approval for bank holding companies, subject to Board to remain a bank holding company should be, and approval of individual proposals in accordance hereby is, denied.4 with the procedures of § 225.4(b). Applicant is directed to take appropriate meas­ Notice of the applications, affording opportunity ures to effect a prompt divestiture of its indirect for interested persons to submit comments and control of Bank and is hereby granted thirty days views, has been given in accordance with §§ 3 from the date of this Order to effect said divesti­ and 4 of the Act (40 Federal Register 18047). The ture, unless such period is extended for good cause time for filing comments and views has expired, by the Board or by the Federal Reserve Bank of and the Board has considered the applications and Richmond pursuant to authority hereby delegated. all comments received in light of the factors set By order of the Board of Governors, effective forth in § 3(c) of the Act (12 U.S.C. § 1842(c)), February 11, 1976. and the considerations specified in § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). Voting for this action: Vice Chairman Mitchell and Applicant is a nonoperating corporation formed Governors Bucher, Holland, Wallich, Coldwell, and for the express purposes of becoming a bank Jackson. Absent and not voting: Chairman Bums. Board action was taken while Governor Bucher was holding company through the acquisition of Bank, a Board member. and engaging in the sale of credit life and credit Board action was taken before Governor Partee be­ accident and health insurance. The proposed came a Board member. transaction involves the transfer of control of Bank (Signed) Theodore E. Allison, from individuals to a corporation owned by the [seal] Secretary of the Board. same individuals. Upon acquisition of Bank, Ap­ plicant would control 0.05 per cent of the total deposits in commercial banks in Colorado. 4In view of the Board’s action with respect to the application to remain a bank holding company, consideration of the § Bank holds deposits of $3.4 million,1 repre­ 4(c)(8) application to retain the leasing activities becomes senting 0.08 per cent of the total deposits in the moot. Denver banking market,2 and ranks as the 68th largest of 70 commercial banks operating therein. Certain principal shareholders of Applicant are Mountain Financial Services, Inc., also principal shareholders of three other banks, Denver, Colorado one of which is presently located within the Denver market and one of which will be located Order Approving within the Denver market when it opens for busi­ Formation of Bank Holding Company ness. However, since the subject proposal is and Engaging in Insurance Agency Activities essentially a reorganization of Bank’s present Mountain Financial Services, Inc., Denver, ownership with no immediate change in Bank’s Colorado, has applied for the Board’s approval operations, and in view of the relative size of Bank under § 3(a)(1) of the Bank Holding Company Act and number of banking alternatives available, it (12 U.S.C. § 1842(a)(1)) to become a bank hold­ appears that consummation of the proposal would ing company through acquisition of 100 per cent not eliminate any significant existing or potential of the voting shares (less directors’ qualifying competition, increase the concentration of banking shares) of Northwest State Bank, Arvada, Colo­ resources, or have any adverse effects on any other rado (“Bank”). The factors that are considered banks in any relevant area. Therefore, the com­ in acting on this application are set forth in § 3(c) petitive considerations are consistent with approval of the Act (12 U.S.C. 1842(c)). At the same time, of the application. Applicant has applied, pursuant to § 4(c)(8) of the On August 19, 1974, a previous application by Bank Holding Company Act (12 U.S.C. § Applicant to acquire Bank was denied because the 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ Board was unable to conclude that the projected ulation Y, for permission to act as agent or broker with respect to the sale of credit life, and credit 1A\\ banking data are as of December 31, 1974. accident and health insurance directly related to 2The Denver banking market, the relevant geographic mar­ extensions of credit by Bank. Such activities have ket for purposes of analyzing the competitive effects of the proposed transaction, is approximated by all of Denver, been determined by the Board in § Adams, Arapahoe, and Jefferson Counties and a small portion 225.4(a)(9)(ii)(a) of Regulation Y as permissible of Boulder County, all in Colorado. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 255 earnings of Bank, which had only recently opened of the application would assure customers of Bank for business and had not yet achieved a record of a convenient source of such insurance services. of profitability, were reasonable and, even if real­ Furthermore, there is no evidence in the record ized, the projected earnings did not, in the Board’s indicating that consummation of the proposal view, provide Applicant with the necessary finan­ would result in any undue concentration of re­ cial flexibility to meet its debt servicing require­ sources, unfair competition, conflicts of interests, ments as well as any unexpected problems that unsound banking practices or other adverse effects might arise at Bank. The future prospects for on the public interest. Applicant are still primarily dependent upon the Based on the foregoing and other considerations profitable operations of Bank. However, in the reflected in the record, the Board has determined subject proposal, Applicant has reduced the that the considerations affecting the competitive amount of debt it will assume as part of the factors under § 3(c) of the Act and the balance transaction and increased its equity to debt ratio of the public interest factors the Board must con­ from what it had previously proposed. Applicant sider under § 4(c)(8) of the Act both favor approval also proposes to augment its earnings by commis­ of Applicant’s proposals. sions from the sale of credit-related insurance to Accordingly, the applications are approved for customers of Bank. In addition, after more than the reasons summarized above. The acquisition of 20 months of operation, Bank has established a Bank shall not be made before the thirtieth calen­ record of profitability. In view of these facts, the dar day following the effective date of this Order; Board concludes that the projected earnings for and neither the acquisition of Bank nor com­ Bank appear reasonable and should provide Ap­ mencement of insurance agency activities shall be plicant with the necessary financial flexibility to made later than three months after the effective meet its annual debt servicing requirements as well date of this Order, unless such period is extended as any unexpected problems that may arise at for good cause by the Board, or by the Federal Bank. Moreover, Applicant has committed to Reserve Bank of Kansas City pursuant to delegated maintain Bank’s capital at adequate levels authority. The determination as to Applicant’s throughout the debt retirement period, and not to insurance activities is subject to the conditions set pay dividends, on either preferred or common forth in section 225.4(c) of Regulation Y and to stock, unless and until the projected debt servicing the Board’s authority to require reports by, and requirements have first been satisfied. Further­ make examinations of, holding companies and more, the managerial resources of Applicant and their subsidiaries and to require such modification Bank are considered satisfactory and the future or termination of the activities of a bank holding prospects for each appear favorable. Thus, the company or any of its subsidiaries as the Board considerations relating to the banking factors are finds necessary to assure compliance with the consistent with approval of the application. provisions and purposes of the Act and the Board’s Although consummation of the proposal to ac­ regulations and orders issued thereunder, or to quire Bank would effect no changes in the services prevent evasion thereof. offered by Bank, the considerations relating to the By order of the Board of Governors, effective convenience and needs of the community to be February 5, 1976. served are consistent with approval of the applica­ Voting for this action: Chairman Burns and Gover­ tion. Therefore, the Board concludes that the pro­ nors Mitchell, Holland, Wallich, Jackson, and Partee. posed acquisition of Bank would be in the public Absent and not voting: Governor Cold well. interest and that the application should be ap­ (Signed) Theodore E. Allison, proved. [seal] Secretary of the Board. Also incident to the reorganization of Bank’s ownership, Applicant proposes to act as an agent or broker with respect to the sale of credit life American Security Corporation, and credit accident and health insurance directly Washington, D.C. related to extensions of credit by Bank. At present, Bank engages in this activity. Thus, it does not Order Approving Acquisition of Bank appear that engaging in this activity by Applicant would have any significant effect on existing or American Security Corporation, Washington, future competition. On the other hand, approval D.C. (“ASC”), a bank holding company within Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin □ March 1976 the meaning of the Bank Holding Company Act, certain of AS&T’s nonbanking assets, and it con­ has applied for approval of the Board of Governors tinues to engage directly or through a subsidiary of the Federal Reserve System under section in certain nonbanking activities. ASC has an in­ 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)), to terest in real estate development companies, owns acquire 100 per cent of the voting shares (less real estate under long-term lease to AS&T, directors’ qualifying shares) of the successor by operates a travel agency, acts as agent for the sale merger to American Security and Trust Company, of various types of insurance and originates, pro­ Washington, D.C. (“AS&T”). The bank into cesses and services real estate mortgages and con­ which AS&T is to be merged has no significance struction loans. Certain of these activities have not except as a means to facilitate the acquisition by been determined by the Board to be closely related ASC of the voting shares of AS&T, and the to banking, and therefore are not permissible ac­ proposed acquisition of shares of the successor tivities for bank holding companies under § 4(c)(8) organization is treated herein as the proposed ac­ of the Act. However, ASC claims the right to quisition of the shares of AS&T. ASC and AS&T, continue to engage in all of its nonbanking activi­ however, have identical shareholders, and the ties permanently pursuant to the “grandfather” charter of ASC provides that ASC shares may only provisions of § 4(a)(2) of the Act. This claim is be transferred with an equal number of shares of presently under consideration by the Board. AS&T.1 In light of this “stapled stock” arrange­ AS&T, with deposits of $879.8 million,3 ranks ment, this application represents, in effect, a reor­ as the second largest bank in the District of Co­ ganization of an existing corporate relationship lumbia and the third largest banking organization rather than an acquisition of an unaffiliated entity. in the relevant market4 and holds approximately Notice of this application, affording opportunity 25 per cent of total commercial bank deposits in for interested persons to submit comments and the District and 11 per cent of such deposits in views, has been given in accordance with § 3(b) the market. AS&T operates its 31 offices in the of the Bank Holding Company Act. The time for District of Columbia but serves depositors and filing comments and views with respect to this borrowers from throughout the Washington, D.C. application has expired. The Board has considered SMSA. Inasmuch as Applicant is committed to all timely reports and comments, including those reduce its ownership of the voting stock of FCNB filed September 22 and November 19, 1975, by below 25 per cent and inasmuch as ASC is seeking the Public Interest Research Group and the District merely to restructure an existing control relation­ of Columbia Public Interest Research Group ship, the technical acquisition of AS&T will have (hereafter referred to collectively as “PIRG”), in no adverse effect upon existing or potential com­ light of the factors set forth in the Act.2 petition in the relevant market. Accordingly, the ASC, in addition to its stapled stock affiliation Board concludes that competitive considerations with AS&T, presently owns 96.5 per cent of the are consistent with approval of the application. voting stock of one bank, Fairfax County National The financial condition, managerial resources Bank, Falls Church, Virginia (“FCNB”). Pursu­ and future prospects of AS&T are regarded as ant to a Board order of November 12, 1974 (1974 satisfactory. In fact, this reorganization of ASC Federal Reserve Bulletin 875), ASC has agreed and AS&T into a more traditional parent-subsidi­ to reduce its ownership of the voting stock of ary holding company system will be likely to FCNB to less than 25 per cent by November 1976, increase the efficiency of the system’s organi­ and ASC’s present control of FCNB is not a factor zational structure and will permit greater flexibility relevant to this application. in adding equity capital to ASC and AS&T. Con­ ASC was organized by AS&T in 1957 to take siderations of managerial efficiency as well as over ownership of AS&T’s premises and to hold AS&T’s strong financial condition and future 1This “stapled stock” arrangement is discussed more fully 3A11 banking data are as of June 30, 1975, unless otherwise in the Board’s order involving American Security of November indicated. 12, 1974 (1974 Federal Reserve Bulletin 875). 4The market is approximated by the Washington, D.C. 2The untimely comments of the Adams Morgan Organi­ SMSA including Charles, Montgomery and Prince Georges zation, a nonprofit neighborhood association in the District of County, Maryland and Arlington, Fairfax, Loudoun and Prince Columbia, were considered as well. William Counties, Virginia as well as the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 257 prospects lend weight toward approval of this entire question of its employment practices is application. irrelevant to this application. The Board has received comments in opposition Discrimination in employment on the basis of to the proposal that relate to the managerial re­ race is clearly unlawful. However, the Board has sources of the organization and the convenience a serious question about the relevance of charges and needs of the community to be served. PIRG of employment discrimination in application pro­ has urged the Board to deny the application be­ ceedings arising under the Bank Holding Company cause it contends AS&T has engaged in discrim­ Act. While there is unquestionably a strong public inatory lending and employment practices and has interest in this issue, at least one court has indi­ failed to serve certain portions of the community. cated that there are limits to the Board’s ability The Adams Morgan Organization (“AMO”), a to take into account, under the managerial and neighborhood association in the District of Co­ convenience and needs standards of the Bank lumbia, has urged approval of the application Holding Company Act, public interest consid­ conditioned upon AS&T undertaking an affirma­ erations that go beyond the direct regulatory con­ tive lending program for minority District neigh­ cerns of the Board under the Act. See Western borhoods. AMO relies upon the data submitted by Bancshares, Inc. v. Board of Governors, 480 F. PIRG to support its recommendation. 2d 749 (10th Cir. 1973). As to the question of PIRG makes two basic allegations to demon­ employment discrimination raised by PIRG, sev­ strate that AS&T is failing to serve the needs of eral governmental agencies including the Depart­ segments of the D.C. community, particularly the ment of the Treasury, AS&T’s own primary black community. First, PIRG alleges that supervisory agency—the Comptroller of the Cur­ AS&T’s employment practices are deficient be­ rency—and the District of Columbia Office of cause AS&T has failed to place a sufficient number Human Rights have primary enforcement respon­ of minority persons in managerial or professional sibility. Particularly under these circumstances, positions. Second, PIRG alleges that AS&T has the Board questions whether Congress intended to failed to serve the credit needs of certain segments include such considerations within the scope of of the community because it engages in discrim­ the Bank Holding Company Act. inatory residential mortgage lending practices and Even if the issue of employment discrimination because it fails to make FHA/VA insured mort­ were deemed relevant, however, the Board does gage loans and small business loans guaranteed not believe that PIRG has presented evidence of by the Small Business Administration. discriminatory employment practices that would With respect to its charges of employment dis­ merit an adverse finding by the Board on the crimination on the part of AS&T, PIRG states that: managerial and convenience and needs factors in (1) AS&T is a major employer in the District of the present application. Over 40 per cent of Columbia, employing 1278 persons; (2) although AS&T’s employees are black while only 25 per 61 per cent of AS&T’s clerical employees are cent of the population of the Washington, D.C. black, only 14.1 per cent of its officials and man­ SMSA is black. AS&T, by PIRG’s own figures, agers and 14.7 per cent of its professionals are has increased the proportion of its black officers black; (3) the population of District of Columbia and managers from less than one per cent to more is 70 per cent black; (4) from 1972 to 1975 AS&T than fourteen per cent in the past three years. The created 174 positions for officers and managers, percentage of black professional employees has but the number of black officers increased by only also increased 2.5 per cent to almost 15 per cent 45 persons—slightly more than 25 per cent of in the same time period. Moreover, the Depart­ those added, (5) only 14 of the 80 professionals ment of the Treasury has determined that AS&T’s added to AS&T’s staff during this same period ongoing Affirmative Action Program meets all were black—about 17 per cent. relevant standards. Thus, even if the Board con­ In response ASC has submitted a letter from sidered PIRG’s charge to be germane in this case, the Department of the Treasury indicating that it the figures submitted by PIRG do not support an has reviewed AS&T’s Affirmative Action Program adverse finding on the convenience and needs or and has found that its program complied with managerial factors as they relate to ASC’s appli­ Executive Order 11246 and the rules issued by cation. the Secretary of Labor. ASC also urges that the In support of its second allegation, that AS&T Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin □ March 1976 has failed to meet the needs of certain segments AS&T’s lending practices have been motivated by of the community due to discriminatory lending consideration of race. ASC cites a 1974 study by practices, PIRG states: the Federal Home Loan Bank Board as demon­ (1) From 1973 through 1975 AS&T originated strating that it made a substantial number of loans the majority (69.5 per cent, $4.2 million in 1973, to black persons, and it dismisses PIRG’s claim 94 per cent, $1.7 million from June to December, that it does not participate in the FHA/VA and 1974 and 91.4 per cent, $2.4 million in the first SB A programs as not showing discrimination. 9 months of 1975) of its first mortgage residential The underlying issues raised by PIRG’s conten­ property purchase money loans in three predomi­ tions are: (1) whether AS&T’s failure to provide nantly white neighborhoods of the District with mortgage loans for purchase of residential property approximately 17 per cent of the District’s popu­ in certain geographic areas of the District of Co­ lation. During the same period, AS&T originated lumbia, and its failure to make loans under the a small portion of such loans (30.5 per cent, $1.86 Federal FHA, VA and SB A programs, if proven, million in 1973, 6 per cent, $.12 million from establish that AS&T has not been meeting the June to December 1, 1974, and 9 per cent, $.23 convenience and needs of the community, and if million in the first nine months of 1975) in 16 so, (2) whether such facts are entitled to significant mixed or predominantly black neighborhoods of weight in the Board’s consideration of the con­ the District that contain approximately 83 per cent venience and needs factors related to this applica­ of the District’s population. At least 7 of these tion. The Board is, of course, required by § 3(c) neighborhoods received no residential property of the Act to take into consideration the conven­ purchase money loans each year. ience and needs of the community to be served (2) In 1973 and in 1975 AS&T made no resi­ in acting upon applications by companies to ac­ dential mortgage loans under the FHA or VA quire banks, but there are other factors that must programs of insurance and guarantee although the be considered as well, and, depending upon the majority of FHA insured residential mortgage nature of the application, certain of these factors loans made in the District are made to black may be accorded greater weight than others. persons (85 per cent of such loans in 1974). In evaluating PIRG’s charges relating to the (3) In fiscal year 1974 AS&T originated loans convenience and needs, the Board believes it is of only $25,000 under the loan guarantee program important to view them in the broad perspective of the Small Business Administration, while 28 of the range of services offered by a large com­ of the 34 participating banks in the relevant market mercial bank such as AS&T. PIRG’s charges originated more. Approximately 70 per cent of the relate to the areas of 1-4 family residential mort­ black-owned businesses in the District and ap­ gage loans and small business loans, two of more proximately 30 per cent of the white-owned busi­ than fifteen types of loans listed in the Annual nesses are small businesses. Reports of Condition of AS&T. The Board em­ PIRG contends that such factors must be con­ phasizes again the point made in its order on the sidered relevant to the application since the Board application of Marine Midland Banks5 that “bank must consider the convenience and needs of the managements should and do have a range of dis­ community in acting upon any application. cretion as to the types of loans they will make In response, ASC states that the proposal before and the degree of risk they will assume.” AS&T the Board is merely an internal reorganization of may reasonably choose to minimize or to empha­ an existing bank holding company structure that size a particular type of lending, and it would not will not result in any change of ownership or be appropriate to assess AS&T’s performance in management or any expansion of offices or activi­ satisfying the convenience and needs of the com­ ties. ASC argues that this proposal will have no munity by focusing on only two of the many effect upon the employment or lending policies of services it offers. the bank and no impact upon the convenience and Moreover, commercial banks have not tradi­ needs of the community. For these reasons, ASC tionally been primary lenders in the residential claims that PIRG’s assertions are irrelevant to the mortgage market. In the District as of June 1974, application. With respect to PIRG’s substantive allegations, ASC claims that PIRG has failed to establish discrimination because there is no evidence that 51975 Federal Reserve Bulletin 890. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 259 savings and loan institutions had residential mort­ made by a commercial bank at all except as an gage loan portfolios nearly six times greater in accommodation to good customers or to assist dollar value than the residential mortgage loan large corporate depositors with a need for mort­ portfolios of commercial banks. AS&T’s share of gage credit to assure a transfer of personnel.7 The the residential mortgage originations in the District Board cannot base a conclusion that AS&T is of Columbia in 1973, at a time when mortgage guilty of a significant failure to serve the banking lending was at an all time high nationally,6 was needs of the community merely on the fact that approximately 5.8 per cent, with 93 originations AS&T may not have allocated its minimal number totaling $6.08 million. Thus, even in a year when of residential mortgage loans pro rata throughout AS&T’s involvement in the residential mortgage the neighborhoods of the District of Columbia. market would be expected to be most significant, Nor is the Board persuaded that AS&T should the role of AS&T was not major. be compelled to allocate additional funds to this AS&T’s actual originations declined substan­ type of lending. AS&T is a large commercial bank tially to 86 loans, totaling $4.5 million, in the that has chosen to serve the community by em­ 15-month period from June 1974 to September phasizing certain of its banking functions over 1975. In the first 9 months of 1975, a period of residential mortgage lending. It provides other easing credit when mortgage lending nationally services that primary mortgage lenders, such as rose more steeply than ever before, AS&T origi­ savings and loan associations and mortgage bank­ nated only 53 residential mortgage loans with a ing companies, and even smaller commercial volume of $2.7 million. Since AS&T has about banks, may not have the capability to provide. For $880 million in deposits and over a billion dollars example, AS&T is an important source of mort­ in total assets these figures on residential mortgage gage lending for purchase or construction of such lending reveal that such lending is a very small projects as apartments, offices, hotels, and factor­ part of AS&T’s banking services. ies. AS&T is the largest non-residential and unin­ At year-end 1974 AS&T held 5.8 per cent of sured multifamily real estate lender in the District, its total assets in uninsured loans secured by 1-4 both in dollar volume and as a percentage of total family residential properties. Since such loans are assets. As of year-end 1974, AS&T had $142.8 long-term, each year’s originations are a fraction million in loans outstanding in these two cate­ of a per cent of total assets. For example, it was gories—approximately 26 per cent of its total loan approximately 0.6 of one per cent in 1973. In portfolio. No other commercial bank in the District contrast, 11.4 per cent of AS&T’s total assets are had more than $81 million, or 18 per cent of its in short-term loans to individuals for personal total loans, in these two areas. Nothing in the Bank needs. The dollar volume of such originations each Holding Company Act or any other applicable law year would be seven or eight times greater than or regulation compels a conclusion that AS&T for residential mortgage loans. must, in order to obtain approval of its proposed Unless it were to be argued that AS&T has an internal reorganization, divert resources from areas obligation to increase its total residential mortgage in which it is one of the few important alternative lending, PIRG’s protest may be viewed as a claim sources of credit to areas in which it has not been that of its toal of 93 residential mortgage loans a significant factor and in which there are many in 1973 AS&T should have made an average of alternative sources. 5 loans in each of the 19 neighborhoods of the In addition, not all of AS&T’s efforts to meet District, and 4.5 loans (of its total of 86) in those the residential mortgage needs of the community neighborhoods between June 1974 and September are in the form of direct lending. As of year-end 1975, and that some of those loans should have 1974, AS&T had nearly $88 million in loans been FHA/VA loans. This strict allocation of outstanding to other financial institutions, includ­ credit would ignore such relevant factors as the reality that many such residential mortgage loans, particularly in times of tight credit, would not be 7Some indication of this factor can be found in the size of AS&T’s loans. In 1974-75, AS&T’s average residential mort­ gage loan was $52,000 and in 1973 the average was $65,000. 6Net mortgage lending from private lenders reached almost When the normal 20-25 per cent down payment is considered, $55 billion in 1973, but declined rapidly to less than $20 billion AS&T was financing the purchase of homes with an average by year-end 1974. selling price of between $70,000 and $85,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Federal Reserve Bulletin □ March 1976 ing savings and loan associations, finance compa­ in the 27 months for which statistics have been nies, and mortgage banking companies. As one presented. In fact, AS&T made a greater percent­ of the largest financial institutions in the Washing­ age of the dollar volume of its originations in ton, D.C. SMSA, many of AS&T’s respon­ certain neighborhoods where a majority of the sibilities are as a financial center for smaller insti­ inhabitants were black than the neighborhood re­ tutions. AS&T assists the primary consumer and ceived from all lenders. residential mortgage lenders, and in this way en­ PIRG’s data do not establish racial discrim­ ables them to provide additional mortgage funds. ination and whatever the basis of AS&T’s limited Finally, in view of the small number of loans residential mortgage lending activity, the impact involved, a decision, for whatever reason, to make is not sufficiently significant to reflect adversely one or two loans in a neighborhood greatly alters upon AS&T’s overall service to the community. the statistics. It is difficult to attach any signifi­ Accordingly, the Board cannot find that the factors cance to a figure relating to a particular neighbor­ relating to the convenience and needs lend weight hood when the statistics must divide 33 loans made to denial, but rather finds that they are consistent in six months of 1974, or 53 loans made in the with approval. first nine months of 1975, into 19 neighborhoods. Even were the Board to have drawn some ad­ PIRG additionally relies upon statistics to dem­ verse inferences, considerations relating to the onstrate that AS&T’s lending practices are inten­ convenience and needs of the community are nec­ tionally discriminatory on racial grounds. How­ essarily of greater import in an application for ever, the Board finds that these statistics are expansion of the activities of the holding company inconclusive and tend to support a number of where the Board must assess the service likely to contradictory inferences. For example, PIRG’s be offered to the new community. In this case ASC statistics are consistent with a finding that AS&T and AS&T may continue to operate as they have receives a disproportionate number of its loan ap­ in the past even if the Board denies the application. plications from neighborhoods where the predomi­ What is involved is a mere reorganization of the nant number of residents are white. Such a finding structure of two companies that will not alter in would not be unreasonable in view of the fact that any way the present service to the existing market. over 60 per cent of AS&T’s offices are in white Therefore, the convenience and needs factors carry neighborhoods or in downtown areas of the Dis­ minimal weight. trict where the customers are likely to include large On the basis of the record, the application is numbers of commuters. approved for the reasons summarized above. The Alternatively, PIRG’s data would support the transaction shall not be made (a) before the thir­ inference that AS&T emphasizes other types of tieth calendar day following the effective date of lending and makes residential mortgage loans only this Order or (b) later than three months after that to accommodate established customers and em­ date, unless such period is extended for good cause ployees. Indeed, as our discussion above indicates, by the Board or by the Federal Reserve Bank of the Board believes that this inference is more Richmond, pursuant to delegated authority.8 compelling than the inference that AS&T has By order of the Board of Governors, effective intentionally discriminated in making residential February 19, 1976. mortgage loans on the basis of race. Voting for this action: Governors Holland, Wallich, Furthermore, there are certain data presented Coldwell, and Partee. Absent and not voting: Chairman that are inconsistent with a theory of lending Burns and Governors Gardner and Jackson. discrimination. A study by the Federal Home Loan (Signed) Theodore E. Allison, Bank Board indicates that from June 1 to De­ [seal] Secretary of the Board. cember 1, 1974, AS&T approved a greater per­ centage (89.8) and a greater number (115) of applications for mortgage and home improvement loans from blacks than from whites (89.2 per cent, 100 loans). These loans were made in all areas of the city, and more than 75 per cent were made 8The motions of AMO and two other neighborhood associa­ in neighborhoods that are not predominantly tions, the Naylor Dupont Community Coalition and Southeast Neighbors, that the Board approve this application only upon white. PIRG’s own figures reveal that AS&T made imposition of certain conditions are hereby denied for the loans in all but three neighborhoods at some time reasons set forth in this Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 261 CleveTrust Corporation, deposits of approximately $42.8 million, repre­ Cleveland, Ohio senting 10.2 per cent of total commercial bank deposits in the Steubenville-Weirton banking mar­ Order Approving Acquisition of Banks ket, and ranks as the fourth largest of 16 banks operating in that market. Scio Bank holds deposits CleveTrust Corporation, Cleveland, Ohio, a of approximately $10.2 million and is the only bank holding company within the meaning of the bank operating in the Scio banking market. None Bank Holding Company Act (“Act”) has applied of Applicant’s banks are located in the markets for the Board’s approval under § 3(a)(3) of the where the three banks are located. From the facts Act (12 U.S.C. § 1842(c)) to acquire: (1) 99.8 of record, there is no indication that any meaning­ per cent of the voting shares of The Peoplesful competition presently exists between any of Merchants Trust Company, Canton, Ohio Applicant’s subsidiary banks and the three subject (“Peoples Bank”); (2) 98.7 per cent of the voting banks; nor does it appear likely that any significant shares of The Union Savings Bank and Trust competition would develop in the foreseeable fu­ Company, Steubenville, Ohio (“Union Bank”); ture due to the distances involved and Ohio’s and (3) 96.2 per cent of the voting shares of The branching laws. Scio Bank Company, Scio, Ohio (“Scio Bank”). Although consummation of the proposed acqui­ Notice of the applications, affording opportunity sitions would foreclose the possibility that either for interested persons to submit comments and Applicant or BancShares would enter banking views, has been given in accordance with § 3(b) markets served by the other, it appears that there of the Act. The time for filing comments and views is little likelihood of significant competition de­ has expired, and the applications and all comments veloping between the two banking organizations received have been considered in light of the in the absence of the subject proposal. Moreover, factors set forth in section 3(c) of the Act (12 it does not appear from the facts of record that U.S.C. § 1842(c)). BancShares has the necessary financial or mana­ Applicant, the largest banking organization in gerial resources to expand geographically in the Ohio, controls five banks with aggregate deposits foreseeable future. Although Applicant may of approximately $3.1 billion, representing 10.3 possess the capabilities to enter the relevant mar­ per cent of the total deposits in commercial banks kets de novo, these markets are not particularly in the State.1 The three banks that Applicant pro­ attractive for such entry. The Canton and Steu­ poses to acquire are presently controlled by benville-Weirton markets have deposits per bank­ Peoples BancShares, Inc., Canton, Ohio (“Bancing office ratios that are below the State average; Shares”), the 26th largest banking organization in and the Scio market has population and deposits the State, and are BancShares’ only subsidiaries. per banking office ratios that are far below the Applicant proposes to acquire to above-stated per­ respective State averages. centages of the shares of the three banks from In view of the foregoing, it is concluded that BancShares. Applicant’s acquisition of these three consummation of the proposals would not have banks would increase its share of total State de­ posits by 0.6 per cent and would not significantly increase the concentration of banking resources in Ohio. The three subject banks operate in three distinct 2The relevant geographic markets for purposes of analyzing the competitive effects of the proposed acquisitions are de­ markets.2 Peoples Bank holds deposits of $128.6 scribed by the following: million, representing 13.9 per cent of total deposits —The Canton banking market is approximated by all of Stark in commercial banks in the Canton banking mar­ County, excepting therefrom Lawrence Township and the western half of Lake Township; Smith Township and the ket, and ranks as the third largest of 13 banking western half of Lake Township; Smith Township in Mahoning organizations operating therein. Union Bank holds County; Lawrence and Sandy Townships in Tuscarawas County; and Augusta, Brown, East and Rose Townships in Carroll County, all in Ohio. —The Steubenville-Weirton market is approximated by Jeffer­ son County, Ohio, excepting therefrom Brush Creek, Ross, Springfield, and Wayne Townships; and Clay and Butler *A11 banking data are as of June 30, 1975, and reflect holding Townships in Hancock County, and Cross Creek Township company formations and acquisitions approved through Jan­ in Brooke County, all in West Virginia. uary 31, 1976. —The Scio market is approximated by the village of Scio, 2See opposite column for footnote. Ohio and surrounding unincorporated environs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Federal Reserve Bulletin □ March 1976 significantly adverse effects on existing or potential has expired, and the Board has considered the competition in any relevant area and that competi­ application and all comments received in light of tive considerations are consistent with approval of the factors set forth in § 3(c) of the Act (12 U.S.C. the applications. 1842(c)). The financial and managerial resources of Ap­ Applicant, the seventh largest bank holding plicant and its subsidiaries are considered satis­ company in Texas, controls six banks with aggre­ factory, and the future prospects for each appear gate deposits of $943 million, representing ap­ favorable. As subsidiaries of Applicant, these proximately 2.2 per cent of total deposits in com­ same conclusions generally apply to Peoples Bank, mercial banks in the State.1 Since Bank is a Union Bank and Scio Bank. Thus, the banking proposed new bank, its acquisition by Applicant factors are consistent with approval of the appli­ would neither immediately increase Applicant’s cations. Affiliation with Applicant would provide share of deposits nor alter its rank in the State. the three banks with access to Applicant’s financial Bank would be located in the southern portion and managerial resources, and should permit the of the city of San Antonio and would be competing banks to offer new and expanded services to their in the San Antonio banking market.2 Applicant customers. Thus, the considerations relating to the presently has two banking subsidiaries in the rele­ convenience and needs of the communities to be vant market and ranks as the third largest banking served lend some weight toward approval of the organization with 10.8 per cent of total commer­ applications. It has been determined that the pro­ cial bank deposits in the market. There are 41 posed acquisitions would be in the public interest banking organizations in the relevant market and and that the applications should be approved. the two largest (each of which is a multibank On the basis of record, the applications are holding company) control approximately 26 and approved for the reasons summarized above. The 16 per cent, respectively, of the total commercial transactions shall not be made (a) before the thir­ bank deposits in the market. Since Bank is a tieth calendar day following the date of this Order proposed new bank, its acquisition by Applicant or (b) later than three months after the date of would not eliminate any existing or potential this Order, unless such period is extended for good competition, nor would the concentration of bank­ cause by the Board, or by the Federal Reserve ing resources be increased in any relevant area. Bank of Cleveland pursuant to delegated authority. Accordingly, the Board concludes that competitive By order of the Secretary of the Board, acting considerations are consistent with approval of the pursuant to delegated authority for the Board of application. Governors, effective February 13, 1976. With regard to convenience and needs consid­ erations, the establishment and acquisition of Bank (Signed) Theodore E. Allison, by Applicant could result in the increased avail­ [seal] Secretary of the Board. ability of services for the residents of the area. To this extent, considerations relating to the con­ venience and needs of the community to be served Federated Capital Corporation, are consistent with, and lend some weight toward, Houston, Texas approval of the application. However, in acting on an application by a bank Order Denying Acquisition of Bank holding company to expand its banking interests, Federated Capital Corporation, Houston, Texas, the Board is required by the Bank Holding Com­ a bank holding company within the meaning of pany Act to consider the financial and managerial the Bank Holding Company Act, has applied for resources of the applicant holding company and the Board’s approval under § 3(a)(3) of the Act of its subsidiaries. In the exercise of that respon- (12 U.S.C. 1842(a)(3)) to acquire all of the voting shares (less directors’ qualifying shares) of South Park National Bank, San Antonio, Texas (“Bank”), a proposed new bank. 1A11 banking data are as of June 30, 1975, and reflect bank Notice of the application, affording opportunity holding company formations and acquisitions approved by the for interested persons to submit comments and Board through December 31, 1975. 2 The San Antonio banking market is approximated by the views, has been given in accordance with § 3(b) San Antonio SMSA, which includes Bexar, Comal, and of the Act. The time for filing comments and views Guadalupe Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 263 sibility with respect to the present proposal, the operate the present offices of Hamilton Bank as Board finds that such considerations warrant denial branches. of the application. Notice has been given to the Comptroller of the In regard to financial and managerial consid­ Currency in accordance with § 3(b) of the Act. erations, the Board notes that Applicant has expe­ The Comptroller has recommended approval of the rienced some difficulties that have placed a strain application. In addition, the Board has solicited on its overall financial condition. Moreover, a and considered herein the views of the United number of recent management changes have oc­ States Department of Justice. Public notice of the curred at Applicant and certain of its subsidiaries. application is not required by the Act, and in view In view of such circumstances, the Board believes of the emergency situation set forth below, the that it would be inappropriate for Applicant to Board has not followed its normal practice of expand its banking interests at this time through affording interested parties the opportunity to sub­ the establishment of a new bank, since such action mit comments and views. The Board has consid­ would divert the resources of Applicant from its ered the application and all comments received in existing operations at a time when those operations light of the factors set forth in § 3(c) of the Act are requiring Applicant’s full attention. Accord­ (12 U.S.C. § 1842(c)). ingly, the Board is of the view that considerations Applicant is the largest holding company in the relating to financial and managerial resources lend State with 12 subsidiary banks and total deposits weight toward denial of the application, and as of $1,237.6 million. Bank has been formed to adverse factors are not outweighed by any pro- acquire certain assets and liabilities of the Hamil­ competitive effects or by benefits that would result ton National Bank, Chattanooga, Tennessee, in serving the convenience and needs of the com­ which has been declared insolvent and placed in munity, it is the Board’s judgment that approval receivership by the Comptroller of the Currency of the application would not be in the public on this date. In view of the insolvency of Hamilton interest and that the application to acquire Bank Bank, the Board finds that any adverse effects on should be denied. competition in any relevant banking market that By order of the Board of Governors, effective would result from consummation of the acquisition February 3, 1976. are outweighed by the public interest consid­ erations relating to the acquisition. Considerations Voting for this action: Vice Chairman Mitchell and relating to convenience and needs of the commu­ Governors Holland, Wallich, Coldwell, Jackson, and nities to be served lend very strong weight toward Partee. Absent and not voting: Chairman Burns. approval as the proposal will protect all depositors (Signed) Griffith L. Garwood, of Hamilton Bank and will insure the continued [seal] Assistant Secretary of the Board. i provision of banking services and the preservation of a competitor in that market. First Tennessee National Corporation, The financial and managerial resources and fu­ ture prospects of Applicant and its subsidiaries are Memphis, Tennessee regarded as generally satifactory. In light of the Order Approving Acquisition of Bank insolvency of Hamilton Bank and the financial assistance being provided by the Federal Deposit First Tennessee National Corporation, Mem­ Insurance Corporation for Bank, financial and phis, Tennessee, a bank holding company within managerial factors lend support to approval of the meaning of the Bank Holding Company Act, Bank’s acquisition. It is the Board’s judgment that has applied for the Board’s approval under § the proposed transaction would be in the public 3(a)(3) of the Act, 12 U.S.C. § 1842(a)(3), to interest and that the application should be ap­ acquire the shares of First Tennessee National proved. Bank, Chattanooga, Tennessee (“Bank”), a de Applicant received the Board’s approval to ac­ novo bank which will acquire assets and assume quire Pioneer Bank, Chattanooga, Tennessee. As substantially all of the liabilities of Hamilton Na­ part of this transaction, however, Applicant has tional Bank, Chattanooga, Tennessee (“Hamilton negotiated a termination of that contract. Accord­ Bank”), total deposits of $461 million,1 and ingly, the Board’s Order of March 12, 1975, approving Applicant’s acquisition of Pioneer is deposit data are as of June 30, 1975. hereby vacated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin □ March 1976 On the basis of the record, the application is Bank, the largest of seven banking organizations approved for the reasons summarized above. The in the relevant market,2 holds approximately 32 transaction shall not be made (a) before the thir­ per cent of total market deposits. Applicant has tieth calendar day following the effective date of no banking office in the relevant market of Bank, this Order or (b) later than three months after the and the nearest office of any of Applicant’s sub­ effective date of this Order, unless such period sidiary banks to any office of Bank is approxi­ is extended for good cause by the Board, or by mately 175 miles away. No meaningful competi­ the Federal Reserve Bank of St. Louis pursuant tion exists between any of Applicant’s subsidiary to delegated authority. banks and Bank, and it appears unlikely that such By order of the Board of Governors, effective competition would develop in the future in view February 16, 1976. of the distances involved and Michigan’s restric­ tive branching law. Although Applicant could Voting for this action: Chairman Burns and Gover­ enter the market de novo or through the acquisition nors Holland, Wallich, Coldwell, Jackson, and Partee. of a smaller bank, it does not appear that Appli­ Absent and not voting: Governor Gardner. cant’s acquisition of Bank would have adverse (Signed) Theodore E. Allison, effects on potential competition inasmuch as the [seal] Secretary of the Board. proposal would not foreclose the entry of other holding companies into this market. Accordingly, Great Lakes Financial Corporation, on the basis of the facts of record, the Board concludes that competitive considerations are con­ Grand Rapids, Michigan sistent with approval of the application. Order Approving Acquisition of Bank Although Applicant will incur debt as a result of this acquisition, it does not appear that the debt Great Lakes Financial Corporation, Grand servicing requirements over the 12-year amortiza­ Rapids, Michigan, a bank holding company within tion period will strain the capital positions of the meaning of the Bank Holding Company Act, Applicant’s present and proposed subsidiary has applied for the Board’s approval under § banks. Moreover, Applicant’s board of directors 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to has adopted a resolution committing Applicant to acquire all of the voting shares of First National maintaining adequate capital levels in its subsidi­ Bank and Trust Company, Petoskey, Michigan ary banks, through retention of earnings or in the (“Bank”). alternative through equity offerings or through Notice of the application, affording opportunity dividend reductions if necessary. In view of the for interested persons to submit comments and projected earnings of Applicant and the aforemen­ views, has been given in accordance with § 3(b) tioned commitment, it is the Board’s view that of the Act. The time for filing comments and views considerations relating to financial and managerial has expired, and the Board has considered the resources are satisfactory and consistent with ap­ application and all comments received in light of proval. It appears that the proposed affiliation of the factors set forth in § 3(c) of the Act (12 U.S.C. Bank with Applicant is likely to result in an § 1842(c)). expansion of the services presently offered by Applicant, the twelfth largest banking organi­ Bank. Considerations relating to the convenience zation in Michigan, controls two banks with ag­ and needs of the community to be served, there­ gregate deposits of $422.8 million, representing fore, lend some weight toward approval of the 1.5 per cent of the total deposits in commercial application. It is the Board’s judgment that the banks in the State.1 Acquisition of Bank (deposits proposed acquisition would be in the public inter­ of $51.1 million) would increase Applicant’s share est and that the application should be approved. of commercial bank deposits in Michigan by .18 On the basis of the record, the application is per cent and would have no appreciable effect upon approved for the reasons summarized above. The the concentration of banking resources in Michi­ transaction shall not be consummated (a) before gan. the thirtieth calendar day following the effective 2The relevant banking market is approximated by Emmet 1Banking data are as June 30, 1975. and Charlevoix Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 265 date of this Order or (b) later than three months deposits in commercial banks in the relevant mar­ after the effective date of this Order, unless such ket.3 (All banking data are as of June 30, 1975.) period is extended for good cause by the Board, Acquisition of Bank (approximately $13.9 million or by the Federal Reserve Bank of Chicago pursu­ in deposits) would increase Applicant’s share of ant to delegated authority. deposits in Missouri only slightly and would not By order of the Board of Governors, effective lead to an undue concentration of banking re­ February 27, 1976. sources in the relevant market. Bank, the 69th largest banking organization in Voting for this action: Chairman Burns and Gover­ the relevant market, controls .30 per cent of the nors Gardner, Coldwell, and Jackson. Absent and not total deposits in commercial banks in that market voting: Governors Holland, Wallich, and Partee. and .09 per cent of the total deposits in commercial (Signed) Theodore E. Allison, banks in the State. A distance of some 25 miles [seal] Secretary of the Board. separates Applicant’s subsidiary bank from Bank and it appears that there is little significant compe­ Metro Insurance Agency, Inc., tition between Bank and Applicant’s subsidiary bank. In addition, the principal shareholder of Kansas City, Missouri Applicant is also the principal shareholder and Order Approving Acquisition of Bank chairman of the board of directors of Bank. Therefore, on the basis of the record, the Board Metro Insurance Agency, Inc., Kansas City, concludes that consummation of the proposal Missouri, a registered bank holding company,1 has would not have significant adverse effects upon applied for the Board’s approval under § 3(a)(3) existing or future competition in any relevant area; of the Bank Holding Company Act (12 U.S.C. accordingly, competitive considerations are con­ § 1842(a)(3)) to acquire 25 per cent of the voting sistent with approval of the application. shares of The Pleasant Hill Bank, Pleasant Hill, The financial condition and managerial re­ Missouri (“Bank”). sources of Applicant and Bank are considered Notice of the application, affording opportunity satisfactory and future prospects for both appear for interested persons to submit comments and favorable. Earnings prospects of Bank appear to views, has been given in accordance with § 3(b) provide Applicant the necessary financial flexi­ of the Act. The time for filing comments and views bility to service the debt it will incur to acquire has expired, and none has been timely received. shares of Bank and to maintain an adequate capital The Board has considered the application in light position for Bank. Banking factors are consistent of the factors set forth in § 3(c) of the Act (12 with approval of the application. Although there U.S.C. § 1842(c)). will be no change in management, management Applicant currently has an interest in one bank2 policies, or Bank’s services or facilities, it does with total deposits of approximately $15.6 million, not appear that the banking needs of the Pleasant representing approximately . 10 per cent of the total Hill community are going unserved. Consid­ deposits in commercial banks in the State of Mis­ erations relating to the convenience and needs of souri and approximately .33 per cent of the total the community to be served are consistent with approval of the application. Therefore, it is the Board’s judgment that the proposed transaction 1 Applicant registered as a bank holding company in 1971 would be in the public interest and that the appli­ at the request of the Federal Reserve Bank of Kansas City, cation should be approved. apparently on the premise that the Company controlled Metro­ On the basis of the record, the application4 is politan Bank, Kansas City, Missouri, by virtue of the fact that it owned 24.9 per cent of Metropolitan’s stock and officers approved for the reasons summarized above. The and employees of Company owned additional shares. Although a rebuttable presumption that Company controls Metropolitan Bank exists under § 225.2(b) of the Board’s Regulation Y (12 CFR 225), the Board has made no formal determination that Applicant controls that bank. 2Applicant also engages in the following nonbanking activi­ 3The relevant market is the Kansas City Standard Metro­ ties: acting as an insurance agent with respect to insurance politan Statistical Area excluding all of Ray County and the for the holding company and with respect to credit life insur­ southern portion of Cass County. ance and credit accident insurance that is directly related to 4The Board today has also approved a related application an extension of credit. Applicant has agreed to file a § 4(c)(8) by Peoples Credit Co., Kansas City, Missouri, to acquire application to continue to engage in its nonbanking activities. shares of Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin □ March 1976 transaction shall not be made (a) before the thir­ Applicant, the sixth largest banking corporation tieth calendar day following the effective date of in Michigan, controls four banks1 with aggregate this Order or (b) later than three months after the deposits of $901.9 million, representing approxi­ effective date of this Order, unless such period mately 3.1 per cent of total deposits held by is extended for good cause by the Board, or by commercial banks in the State.2 Inasmuch as Bank the Federal Reserve Bank of Kansas City pursuant will be assuming the business of an existing branch to delegated authority. of one of Applicant’s subsidiaries, the establish­ By order of the Board of Governors, effective ment of Bank as a de novo banking subsidiary February 19, 1976. of Applicant would neither immediately increase Applicant’s share of deposits nor alter its rank in Voting for this action: Chairman Burns and Gover­ Michigan. nors Wallich, Coldwell, Jackson, and Partee. Absent The Woodland Mall Branch of Old Kent Bank and not voting: Governors Mitchell and Holland. Board action was taken while Governor Mitchell was (deposits of $3.4 million) is presently located in a Board Member and before Governor Gardner became Kentwood, Michigan, a suburb of Grand Rapids a Board Member. and, upon assuming the business of the branch, (Signed) Theodore E. Allison, Bank will be competing in the Grand Rapids [seal] Secretary of the Board. banking market.3 Through the Old Kent Bank, Applicant controls $807.3 million in deposits, representing approximately 49 per cent of total deposits held by commercial banks in that market, Old Kent Financial Corporation, and thereby ranks as the largest banking organi­ Grand Rapids, Michigan zation in the relevant banking market. The second largest banking organization in the relevant bank­ Order Approving Acquisition of Bank ing market controls approximately 22.8 per cent Old Kent Financial Corporation, Grand Rapids, (as of June 30, 1974) of total market deposits and Michigan (“Applicant”), a bank holding company is also the eleventh largest banking organization within the meaning of the Bank Holding Company in the State. In addition, the market’s third largest Act, has applied for the Board’s approval under banking organization controls approximately 20.3 § 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) per cent (as of June 30, 1974) of total market to acquire 100 per cent of the voting shares of deposits and is the second largest banking organi­ Old Kent Bank of Kentwood, Kentwood, Michi­ zation in the State. Thirteen other banking organi­ gan (“Bank”), a proposed new bank. Bank is zations including the State’s first, fifth, and tenth being organized for the primary purpose of taking largest banking organizations, are also represented over the business presently being carried on by in the relevant banking market. The Woodland Mall Branch of Old Kent Bank and Although Applicant has banking offices located Trust Company (“Old Kent Bank”), Grand within the relevant banking market, its only pres­ Rapids, Michigan, an existing subsidiary bank of ence within the city of Kentwood proper is The Applicant. Accordingly, the present proposal is Woodland Mall Branch of Old Kent Bank. Several part of a plan whereby an existing branch of one other banking organizations also operate banking of Applicant’s subsidiaries would be converted offices within the city proper. Inasmuch as Appli­ into a full service bank. cant is seeking to convert a branch of Old Kent Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the JIn addition, by Order dated October 2, 1975, the Board approved the applications by Applicant, filed pursuant to § application and all comments received, including 3(a)(3) of the Act, to acquire 100 per cent of the voting shares those submitted by Kentwood National Bank, of Old Kent Bank of Grandville, Grandville, Michigan, and Old Kent Bank of Wyoming, Wyoming, Michigan, both pro­ Kentwood, Michigan (“Protestant”), and by the posed new banks. [1975 Federal Reserve Bulletin 813; 40 Commissioner of the Financial Institutions Bureau Federal Register 468360 (1975)]. of the State of Michigan, in light of the factors 2A11 banking data are as of June 30, 1975, unless otherwise indicated. set forth in § 3(c) of the Act (12 U.S.C. § 3The relevant banking market is the Grand Rapids banking 1842(c)). market, which is approximated by the Grand Rapids RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 267 Bank into a de novo subsidiary bank of Applicant ganization in which an existing branch of Old Kent and the transaction is merely a part of an internal Bank will be “spun off” into a de novo subsidiary corporate reorganization, it appears that consum­ of Applicant. Consummation of the proposal mation of Applicant’s proposal would not have any would not have any effect on the amount of de­ significant adverse effects upon existing or poten­ posits under the control of Applicant and, there­ tial competition in the relevant market. Moreover, fore, it would not alter the concentration level on the basis of the facts of record, it appears that within the market. Moreover, Bank will take over consummation of this proposal would not signifi­ the present office of Old Kent Bank in Kentwood cantly alter the structure of banking in the market and continue banking operations from that site. nor materially alter Applicant’s competitive posi­ Thus, this proposal would not result in the tion therein. preemption of a banking site. Furthermore, given In its analysis of this application, the Board has the prospects for continued growth in and around also considered the objection received from a Kentwood, as well as the entire Grand Rapids protesting party.4 Protestant, Kentwood National market, it does not appear that consummation of Bank (deposits of $4.1 million) is the only unit Applicant’s proposal would raise significant bar­ bank that is located within the corporate limits of riers to entry from organizations not presently the city of Kentwood and, under Michigan law, represented in Kentwood or in the Grand Rapids is the only bank with branching privileges that is market. presently located in that city. Protestant is a small, Turning to Protestant’s final contention, namely, recently chartered independent bank that has been that consummation of the proposal would ad­ operating for approximately two years and, al­ versely affect its competitive position, the record though it has recently received approval to estab­ indicates that the projected growth of the Kent­ lish a branch within Kentwood, that branch has wood area should be able to sustain the growth not yet been opened. Generally speaking, Protes­ and profitability of both Protestant and Bank. The tant claims that consummation of the transaction city of Kentwood, which is adjacent to the city would have adverse competitive effects in that it of Grand Rapids, has a population in excess of would likely: (1) increase concentration in the 27,000. The city is primarily residential but has market; (2) adversely affect the possibility of shown significant growth as a result of the expan­ eventual deconcentration of the market; and (3) sion of metropolitan Grand Rapids. In addition, adversely affect the competitive position of a ample employment opportunities are being offered smaller recently opened bank. by business and industry, both of which are as­ With respect to the first and second contentions suming greater importance in the area. In view of Protestant, the Board is unable to conclude from of the economic prospects for the area, as well the facts of record that consummation of this as Protestant’s overall sound financial condition, proposal in and of itself would result in an increase it does not appear that Protestant would be placed in the concentration of banking resources within at a serious competitive disadvantage vis a vis the Grand Rapids banking market or lessen the Bank as a result of this proposal.5 likelihood that the market would become less On the basis of the foregoing and the facts of concentrated in the future. As noted above, the record, including the submissions of both Protes­ subject proposal is essentially a corporate reor- tant and the Commissioner of the Michigan Fi­ nancial Institutions Bureau, the Board concludes that consummation of the proposed acquisition would not have significantly adverse effects upon 4The State of Michigan’s Department of Commerce, Finan­ existing competition nor would it foreclose the cial Institutions Bureau, issued approval on July 22, 1974, for the organization of Bank as a de novo subsidiary of development of future competition and that com­ Applicant. In a letter to the Bureau dated July 29, 1974, petitive considerations are consistent with approval Protestant requested a reconsideration of that decision. Ac­ of the application. cordingly, a public hearing was held on October 16, 1974, before the Bureau, in which hearing a transcript was made, formal testimony was heard and exhibits were presented. Thereafter, on May 14, 1975, the Bureau issued an order affirming the approval of the previous de novo application. In a letter to the Federal Reserve Bank of Chicago, dated 5As part of this proposal, Bank would become a State September 4, 1975, the Bureau, in response to that Bank’s member bank of the Federal Reserve System and any additional request for comments on the pending application, stated that branches that it may wish to open in the future could be it supported the subject application. established only with prior Board approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin □ March 1976 The financial and managerial resources and fu­ (“Branch”) of Old Kent Bank and Trust Com­ ture prospects of Applicant and its subsidiaries are pany, Grand Rapids, Michigan, a banking subsid­ regarded as satisfactory. Bank’s future prospects iary of Old Kent Financial Corporation (“Cor­ as a subsidiary of Applicant appear favorable. poration”), also located in Grand Rapids, Michi­ Accordingly, considerations relating to the bank­ gan. Upon consummation of the transaction, ing factors are consistent with approval of the Branch will become a subsidiary bank of Cor­ application. Although Bank will be serving its poration and acquire the name of Bank. customers as a relatively small banking subsidiary As required by the Act, notice of the proposed of Applicant, rather than as a branch of Old Kent merger, in form approved by the Board, has been Bank, it appears that considerations relating to the duly published, and the Board has requested re­ convenience and needs of the community to be ports on the competitive factors from the Attorney served are also consistent with approval of the General, the Comptroller of the Currency, and the application. It is the Board’s judgment that con­ Federal Deposit Insurance Corporation. The Board summation of the proposed acquisition would be also has considered the application in light of the consistent with the public interest and that the factors set forth in the Act. application should be approved. On the basis of the facts in the record, the On the basis of the record, the application is application is approved for the reasons sum­ approved for the reasons summarized above. The marized in the Board’s Order of this date relating transaction shall not be made (a) before the thir­ to the application of Corporation to acquire Bank, tieth calendar day following the effective date of provided that Bank’s acquisition of the assets of this Order nor (b) later than three months after and assumption of the liability to pay deposits that date, and (c) Old Kent Bank of Kentwood, made in Branch shall be made neither (a) before Kentwood, Michigan, shall be opened for business the thirtieth calendar day following the date of this not later than six months after the effective date Order, nor (b) later than three months after the of this Order. Each of the periods described above date of this Order, unless such period is extended in (b) and (c) may be extended for good cause for good cause by the Board, or by the Federal by the Board, or by the Federal Reserve Bank of Reserve Bank of Chicago pursuant to delegated Chicago pursuant to delegated authority. authority. By order of the Board of Governors, effective By order of the Board of Governors, effective February 9, 1976. February 9, 1976. Voting for this action: Vice Chairman Mitchell and Voting for this action: Vice Chairman Mitchell and Governors Coldwell, Jackson, and Partee. Absent and Governors Coldwell, Jackson, and Partee. Absent and not voting: Chairman Burns and Governors Holland and not voting: Chairman Burns and Governors Holland and Wallich. Wallich. (Signed) Theodore E. Allison, (Signed) Theodore E. Allison, [seal] Secretary of the Board. [seal] Secretary of the Board. Peoples Credit Co., Old Kent Bank of Kentwood, Kansas City, Missouri Kentwood, Michigan Order Approving Order Approving Acquisition of Additional Shares of Bank Application for Acquisition of Assets of and Assumption of Peoples Credit Co., Kansas City, Missouri, a Liability to Pay Deposits in Branch registered bank holding company,1 has applied for the Board’s approval under § 3(a)(3) of the Bank Old Kent Bank of Kentwood, Kentwood, Holding Company Act (12 U.S.C. § 1842(a)(3)) Michigan (“Bank”) a de novo State member bank to acquire an additional 19.7 per cent of the voting of the Federal Reserve System, has applied for shares of The Pleasant Hill Bank, Pleasant Hill, the Board’s approval, pursuant to the Bank Merger Missouri (“Bank”). Act (12 U.S.C. § 1828(c)), of the acquisition of the assets of and the assumption of the liability to pay deposits in The Woodland Mall Branch 1See opposite page for footnote. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 269 Notice of the application, affording opportunity sources and would not have an adverse effect on for interested persons to submit comments and other banks in the area. Thus, competitive consid­ views, has been given in accordance with § 3(b) erations are consistent with approval of the appli­ of the Act. The time for filing comments and views cation. has expired, and none has been timely received. The financial condition and managerial re­ The Board has considered the application in light sources of Applicant and Bank are considered of factors set forth in § 3(c) of the Act (12 U.S.C. satisfactory and future prospects for both appear § 1842(c)). favorable. Banking factors are consistent with ap­ Applicant currently has interests in six Missouri proval of the application. Although there will be banks.2 These six banks together held, as of Sep­ no change in management, management policies, tember 30, 1975, total deposits of approximately or Bank’s services and facilities, it does not appear $78.8 million representing approximately .5 per that the needs of the Pleasant Hill community are cent of total deposits in commercial banks in the going unserved. Considerations relating to the State of Missouri. (Banking data are as of June convenience and needs of the community to be 30, 1975, unless otherwise specified.) Bank holds served are consistent with approval of the applica­ total deposits of approximately $13.9 million, tion. Therefore, it is the Board’s judgment that representing .09 per cent of the total deposits in the proposed transaction would be in the public commercial banks in the State and .30 per cent interest and that the application should be ap­ of the total deposits in the relevant market,3 and proved. is the 69th largest banking organization in the On the basis of the record, the application4 is relevant market. approved for the reasons summarized above. The Applicant currently owns 24.9 per cent of the transaction shall not be made (a) before the thir­ outstanding shares of Bank. Applicant proposes tieth calendar day following the effective date of to acquire an additional 19.7 per cent of Bank’s this Order or (b) later than three months after the shares for cash as part of a plan to reorganize the effective date of this Order, unless such period holdings of the family of Applicant’s principal is extended for good cause by the Board, or by shareholder. Since the principal shareholder of the Federal Reserve Bank of Kansas City pursuant Applicant is also, as an individual, the principal to delegated authority. shareholder of Bank, and the proposed acquisition By order of the Board of Governors, effective by Applicant is part of a reorganization of family February 19, 1976. interests in a bank that Applicant already controls, Voting for this action: Chairman Burns and Gover­ consummation of the proposal would not have an nors Wallich, Coldwell, Jackson, and Partee. Absent adverse effect on existing or potential competition, and not voting: Governors Mitchell and Holland. would not increase concentration of banking re­ Board action was taken while Governor Mitchell was a Board Member and before Governor Gardner became a Board Member. (Signed) Theodore E. Allison, [seal] Secretary of the Board. 1 Applicant registered as a bank holding company in 1971 at the request of the Federal Reserve Bank of Kansas City, apparently on the premise that the Company controlled Metro­ 4The Board today has also approved a related application politan Bank, Kansas City, Missouri, by virtue of the fact that by Metro Insurance Agency, Inc., Kansas City, Missouri, to it owned 24.9 per cent of Metropolitan’s stock and officers acquire shares of Bank. and employees of Company owned additional shares. Although a rebuttable presumption that Company controls Metropolitan Bank exists under § 225.2(b) of the Board’s Regulation Y (12 CFR 225), the Board has made no formal determination Republic of Texas Corporation, that Applicant controls that bank. 2Applicant also engages in the following nonbanking activi­ Dallas, Texas ties: making or acquiring for its own account or for the account of others, loans and other extensions of credit and providing Order Approving Acquisition of Banks bookkeeping or data processing services for international operations of the company and storing and processing other Republic of Texas Corporation, Dallas, Texas, banking, financial, or related economic data, including per­ forming payroll, accounts receivable, and billing services. a bank holding company within the meaning of Applicant has agreed to file a § 4(c)(8) application to continue the Bank Holding Company Act, has applied for to engage in its nonbanking activities. 3The relevant market is the Kansas City SMSA excluding the Board’s approval under § 3(a)(3) of the Act all of Ray County and the southern portion of Cass County. (12 U.S.C. 1842(a)(3)) to acquire all of the voting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 Federal Reserve Bulletin □ March 1976 shares, less directors’ qualifying shares, of the and Texas’ restrictive branching law. In addition, successors by merger to First National Bank of the market appears relatively unattractive for de Henderson, Henderson, Texas (“Henderson novo entry since the relevant area is a sparsely Bank”), and First Bank in Groveton, Groveton, populated, rural area, which has been experiencing Texas (“Groveton Bank”). (Henderson Bank and a relatively low rate of growth. Accordingly, the Groveton Bank are together referred to herein as Board concludes that competitive considerations “Banks”.) The banks into which Banks are to be are consistent with approval of the acquisition of merged have no significance except as a means Henderson Bank. to facilitate the acquisition of the voting shares Groveton Bank holds deposits of approximately of Banks. Accordingly the proposed acquisition $9.9 million, representing approximately 54.7 per of shares of the successor organizations is treated cent of the total deposits in commercial banks in herein as the proposed acquisition of the shares the relevant market, and is the larger of the two of Banks. banking organizations operating therein.3 Appli­ Notice of the applications, affording opportunity cant’s banking subsidiary closest to Groveton for interested persons to submit comments and Bank is located in a separate banking market in views, has been given in accordance with § 3(b) Houston, approximately 95 miles away, and no of the Act. The time for filing comments and views meaningful competition presently exists between has expired, and the Board has considered the any of Applicant’s subsidiary banks and Groveton application and all comments received in light of Bank. Nor does it appear likely that any significant the factors set forth in § 3(c) of the Act (12 U.S.C. competition between these institutions would de­ 1842(c)). velop in the future in view of the distances in­ Applicant, the fourth largest banking organi­ volved and Texas’ restrictive branching law. In zation in Texas, controls three subsidiary banks addition, the market appears relatively unattractive with aggregate deposits of approximately $2.8 for de novo entry since the relevant area is a billion, representing approximately 6.5 per cent sparsely populated, rural area, which has been of total deposits in commercial banks in the State.1 experiencing a relatively low rate of growth and Applicant’s acquisition of Banks (combined de­ which has a population-to-banking office ratio posits of $34.8 million) would increase Appli­ which is substantially below the State average. cant’s share of commercial bank deposits in Texas Accordingly, the Board concludes that competitive by less than 0.1 per cent, and would not have considerations are consistent with approval of the any appreciable effect upon the concentration of acquisition of Groveton Bank. banking resources in Texas. The financial and managerial resources and fu­ Henderson Bank holds deposits of approxi­ ture prospects of Applicant, its subsidiary banks, mately $24.9 million, representing approximately and Banks are regarded as generally satisfactory 5.5 per cent of the total deposits in commercial and consistent with approval of the applications. banks in the relevant market, and is ranked 10th Affiliation with Applicant would enable Banks to among 21 banking organizations operating expand and improve the range of banking services therein.2 Applicant’s banking subsidiary closest to presently offered to their respective customers, and Henderson Bank is located in a separate banking to increase the availability of credit in both of the market in Dallas, approximately 134 miles away, respective communities. Accordingly, consid­ and no meaningful competition presently exists erations relating to the convenience and needs of between any of Applicant’s subsidiary banks and the communities to be served are consistent with Henderson Bank. Moreover, there appears to be approval of the applications. It is the Board’s little likelihood for the development in the future judgment that the proposed acquisitions would be of any significant amount of competition between in the public interest and that the applications these institutions in view of the distances involved should be approved. On the basis of the record, the applications are approved for the reasons summarized above. The transactions shall not be made (a) before the thir- XA11 banking data are as of June 30, 1975, and reflect holding company formations and acquisitions approved through Jan­ uary 31, 1976. 2The Longview banking market is the relevant banking market and is approximated by Gregg, Harrison, and Rusk 3The relevant banking market is approximated by Trinity Counties. County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 271 tieth calendar day following the effective date of subsidiary banks that Applicant presently controls this Order or (b) later than three months after the is located in the El Paso banking market. Two effective date of this Order, unless such period of the subsidiaries closest to Bank are located is extended for good cause by the Board, or by approximately three and five miles, respectively, the Federal Reserve Bank of Dallas pursuant to from the proposed site of Bank. Since the proposal delegated authority. involves the establishment of a new bank, con­ By order of the Board of Governors, effective summation of the subject acquisition would elimi­ February 20, 1976. nate no existing competition, and no immediate increase in the concentration of banking resources Voting for this action: Chairman Burns and Gover­ would result therefrom. Although Applicant is the nors Holland, Coldwell, Jackson, and Partee. Absent largest banking organization in the El Paso market and not voting: Governors Gardner and Wallich. in terms of total deposits, it competes with three (Signed) Theodore E. Allison, other bank holding companies, including two of [seal] Secretary of the Board. the State’s largest banking organizations. More­ over, the El Paso area has shown substantial growth in recent years, as evidenced by the fact Trans Texas Bancorporation, Inc., that six of the market’s 19 banks opened during El Paso, Texas the last three years. In view of the prospects for Order Approving Acquisition of Bank the continued growth of the area, it appears that Applicant’s proposed de novo expansion in this Trans Texas Bancorporation, Inc., El Paso, market would not deter new entries by other orga­ Texas, a bank holding company within the mean­ nizations not presently in the market. Accordingly, ing of the Bank Holding Company Act, has ap­ on the basis of the facts of record, the Board plied for the Board’s approval under § 3(a)(3) of concludes that consummation of the proposal the Act (12 U.S.C. 1842(a)(3)) to acquire 100 per would not have any adverse effect on existing or cent of the voting shares (less directors’ qualifying potential competition in any relevant area. shares) of Chamizal National Bank, El Paso, The financial and managerial resources and Texas, (“Bank”), a proposed new bank. prospects of Applicant and its subsidiary banks are Notice of the application, affording opportunity regarded as generally satisfactory. Bank, as a for interested persons to submit comments and proposed new bank, has no financial or operating views, has been given in accordance with § 3(b) history; however, its prospects as a subsidiary of of the Act. The time for filing comments and views Applicant appear favorable. Considerations relat­ has expired and the Board has considered the ing to the banking factors are thus consistent with application and all comments received in light of approval of the application. Considerations relat­ the factors set forth in § 3(c) of the Act (12 U.S.C. ing to the convenience and needs of the community 1842(c)). to be served lend some weight toward approval Applicant, the fourteenth largest banking orga­ of the application. The addition of a new bank nization in the State, controls four banks with in the rapidly growing El Paso area would provide aggregate deposits of $384 million, representing a convenient alternative source of banking to the less than 1 per cent of the total deposits of com­ area residents. It is the Board’s judgment that mercial banks in the State.1 Since the application consummation of the proposal would be in the involves the acquisition of a proposed new bank, public interest and that the application should be consummation of the proposal would not immedi­ approved. ately increase Applicant’s share of commercial On the basis of the record, the application is bank deposits in the State. approved for the reasons summarized above. The Bank is to be located in the city of El Paso transaction shall not be made (a) before the thir­ in the El Paso banking market.2 Each of the four tieth calendar day following the effective date of this Order, or (b) later than three months after the effective date of this Order, and (c) Chamizal 1AU banking data are as of June 30, 1975, and reflect bank National Bank, El Paso, Texas, shall be opened holding company formations and acquisitions approved by the for business not later than six months after the Board through January 1, 1976. effective date of this Order. Each of the periods 2The El Paso banking market is approximated by the El Paso SMSA. described in (b) and (c) may be extended for good Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 Federal Reserve Bulletin □ March 1976 cause by the Board, or by the Federal Reserve Company will engage de novo in the activity Bank of Dallas pursuant to delegated authority. of underwriting, as a direct underwriter, of credit By order of the Board of Governors, effective life and credit accident and health insurance di­ February 2, 1976. rectly related to extensions of credit by Applicant’s lending subsidiaries. Company will also engage Voting for this action: Vice Chairman Mitchell and de novo in the reinsurance of insurance previously Governors Holland, Wallich, and Partee. Absent and underwritten by an unaffiliated insurance company not voting: Chairman Burns and Governors Coldwell and Jackson. in connection with Applicant’s extensions of credit. However, all new insurance will be directly (Signed) Theodore E. Allison, underwritten by Company. Since this proposal [seal] Secretary of the Board. involves a de novo activity, consummation of the transaction would not have any significant adverse Orders Under Section 4 effects on existing or potential competition in any Of Bank Holding Company Act relevant market. Credit life and credit accident and health insur­ ance is generally made available by banks and Federated Capital Corporation, other lenders and is designed to assure repayment Houston, Texas of a loan in the event of death or disability of Order Approving the borrower. In connection with its addition of Acquisition of Financial credit life underwriting to the list of permissible Protection Insurance Company of Texas activities for bank holding companies, the Board stated: Federated Capital Corporation, Houston, Texas, a bank holding company within the meaning of To assure that engaging in the underwriting of credit the Bank Holding Company Act, has applied for life and credit accident and health insurance can rea­ the Board’s approval, under section 4(c)(8) of the sonably be expected to be in the public interest, the Act and section 225.4(b)(2) of the Board’s Regu­ Board will only approve applications in which an appli­ cant demonstrates that approval will benefit the con­ lation Y, to engage de novo, through its currently sumer or result in other public benefits. Normally, such inactive wholly-owned subsidiary, Financial Pro­ a showing would be made by a projected reduction in tection Insurance Company of Texas, Houston, rates or increase in policy benefits due to bank holding Texas (“Company”), in the activity of underwrit­ company performance of this service. ing credit life and credit accident and health insur­ ance directly related to extensions of credit by Applicant has stated that, in the event of ap­ Applicant’s lending subsidiaries. Such activity has proval of its proposal, Company will offer reduced been determined by the Board to be closely related premiums for several types of credit insurance to banking (12 CFR § 225.4(a)(10)). policies that it will underwrite. Company will offer Notice of the application, affording opportunity decreasing term single and joint credit life insur­ for interested persons to submit comments and ance at a premium rate 3.4 per cent below the views on the public interest factors, has been duly Texas statutory maximum and level term single published (40 Federal Register 32795 (1975)). The and joint credit life insurance (on single payment time for filing comments and views has expired, loans) at a premium rate 3.7 per cent below the and the Board has considered all comments re­ statutory maximum. Furthermore, Applicant pro­ ceived in the light of the public interest factors poses to lower by 5.0 per cent the premium rate set forth in section 4(c)(8) of the Act (12 U.S.C. for credit accident and health insurance currently § 1843(c)(8)). charged by its direct underwriter. In addition, Applicant, the seventh largest bank holding Applicant proposes to offer decreasing term joint company in Texas, controls six banks with aggre­ credit life and credit accident and health insurance gate deposits of $943 million, representing ap­ at two of its banking subsidiaries where such proximately 2.2 per cent of the total deposits in coverage is not presently available. The Board commercial banks in the State.1 finds that Applicant’s proposed premium rate re­ ductions and increase in policy coverage are pro- 1 All banking data are as of June 30, 1975, and reflect bank competitive and in the public interest. holding company formations and acquisitions approved through December 31, 1975. Based upon the foregoing and other consid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 273 erations reflected in the record, the Board has Southern Bancorporation, Inc., determined, in accordance with the provisions of Greenville, South Carolina section 4(c)(8), that consummation of this proposal Order Approving Acquisition of can reasonably be expected to produce benefits to the public that outweigh possible adverse effects. Imperial Finance Company, Inc. Accordingly, the application is hereby approved. Southern Bancorporation, Inc., Greenville, This determination is subject to the conditions set South Carolina (“Applicant”), a bank holding forth in section 225.4(c) of Regulation Y and to company within the meaning of the Bank Holding the Board’s authority to require such modification Company Act, has applied for the Board’s ap­ or termination of the activities of a holding com­ proval, under § 4(c)(8) of the Act and § pany or any of its subsidiaries as the Board finds 225.4(b)(2) of the Board’s Regulation Y, to ac­ necessary to assure compliance with the provisions quire indirectly all of the assets of Imperial Fi­ and purposes of the Act and the Board’s regula­ nance Company, Inc., Sumter, South Carolina tions and orders issued thereunder, or to prevent (“Company”), through its wholly-owned subsidi­ evasion thereof. ary, World Acceptance Corporation, Greenville, The transaction shall be made not later than South Carolina (“World Acceptance”). Company three months after the effective date of this Order, engages in the activities of making installment unless such period is extended for good cause by loans to individuals and acting as agent in the sale the Board or by the Federal Reserve Bank of of credit-related life, accident and disability insur­ Dallas, pursuant to authority hereby delegated. ance. Such activities have been determined by the By order of the Board of Governors, effective Board to be closely related to banking (12 C.F.R. February 11, 1976. 225.4(a)(1) and (9)). Notice of the application, affording opportunity Voting for this action: Vice Chairman Mitchell and Governors Holland, Wallich, and Partee. Voting against for interested persons to submit comments and this action: Governors Cold well and Jackson. Absent views on the public interest factors, has been duly and not voting: Chairman Burns. published (41 Federal Register 2114). The time (Signed) Theodore E. Allison, for filing comments and views has expired, and [seal] Secretary of the Board. the Board has considered all comments received in the light of the public interest factors set forth in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). Applicant, the fifth largest banking organization in South Carolina, controls two banks with depos­ Dissenting Statement of Governor Coldwell its of approximately $270 million, representing approximately 7 per cent of the total deposits in I would deny the application of Federated Capi­ commercial banks in the State.1 Applicant’s non­ tal Corporation to acquire Financial Protection banking subsidiaries are engaged in consumer fi­ Insurance Company of Texas. nance and related credit insurance activities. As the Board noted in its recent denial of World Acceptance, with total assets of $6.1 Applicant’s proposal to acquire South Park Na­ million, is engaged in making personal installment tional Bank, Applicant has experienced some dif­ loans to individuals through 52 branch offices ficulties that have placed a strain on its overall located in South Carolina, Georgia, and Texas. financial condition. In that decision, the Board In addition, it sells credit-related life, accident and concluded that it would be inappropriate for Ap­ health, and property and casualty insurance plicant to expand its banking interests, since such through offices located in South Carolina and action would divert Applicant’s resources from its Georgia. The Board approved Applicant’s acqui­ existing operations at a time when those operations sition of World Acceptance at the time it granted are requiring Applicant’s full attention. I totally approval of formation of Applicant in September agree with that reasoning but believe further that 1973. it applies with no less force to an application to expand in the nonbanking area. Therefore, I would deny this application until significant improvements in Applicant’s financial *A11 banking data are as of June 30, 1975, unless otherwise and managerial condition have been accomplished. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 Federal Reserve Bulletin □ March 1976 Company, with total assets of $110,494 (as of poses to expand the insurance activities of Com­ July 31, 1975), has operated one office, in Sumter, pany by introducing credit-related property and South Carolina, since December 31, 1971. It en­ casualty insurance. These new services provide gages in making direct loans on an installment benefits to the public, which in the Board’s opin­ basis, primarily to individuals residing within a ion, outweigh any slightly adverse effects the 10-mile radius of Sumter. Company also provides proposal might have on existing competition in the life and accident and health insurance relating to relevant area. the extension of credit. Applicant proposes that Based upon the foregoing and other consid­ upon consummation of this proposal Company will erations reflected in the record, the Board has also engage in the sale of credit-related property determined, in accordance with the provisions of and casualty insurance. § 4(c)(8) of the Act, that Applicant’s acquisition The relevant geographic market is approximated of Company can reasonably be expected to pro­ by Sumter County, South Carolina. The record duce benefits to the public that outweigh possible indicates that consummation of this proposal adverse effects. Accordingly, the application is would eliminate some slight degree of existing hereby approved. This determination is subject to competition between Company and Applicant’s the conditions set forth in § 225.4(c) of Regulation subsidiary, World Finance Company of Sumter, Y and to the Board’s authority to require such South Carolina (“World Finance”), a subsidiary modification or termination of the activities of a of World Acceptance, in the relevant market holding company, or any of its subsidiaries, as wherein the market share held by each approxi­ the Board finds necessary to assure compliance mates 1.1 per cent and 1.2 per cent, respectively. with the provisions and purposes of the Act and However, the elimination of existing competition the Board’s regulations and orders issued there­ appears negligible in view of the fact that, upon under, or to prevent evasion thereof. consummation of this proposal, Applicant would The transaction shall be made not later than control only 2.3 per cent of the personal loan three months after the effective date of this Order, market, and 18 competing consumer finance com­ unless such period is extended for good cause by panies (including several national and regional the Board, or by the Federal Reserve Bank of companies), as well as four commercial banks and Richmond pursuant to delegated authority. a number of credit unions would remain in the By order of the Board of Governors, effective market. In view of the large number of competitors February 9, 1976. in the market and the relatively small size of the Voting for this action: Vice Chairman Mitchell and operations of Company and World Finance in this Governors Coldwell, Jackson, and Partee. Absent and area, it appears that no significant adverse effects not voting: Chairman Burns and Governors Holland and on future competition would result from the pro­ Wallich. posal. On this basis, the Board concludes that (Signed) Theodore E. Allison, Applicant’s acquisition of Company would not [seal] Secretary of the Board. have significant adverse effects on either existing or future competition nor raise barriers to entry Order for Hearing by other organizations. In considering this application, the Board has Citizens and Southern Holding Company, examined a covenant not to compete contained in Atlanta, Georgia an agreement of sale executed between World Finance and Company. The Board finds that the On January 24, 1972, Citizens and Southern provisions of this covenant are reasonable in dura­ Holding Company, Atlanta, Georgia (C&S Hold­ tion, scope, and geographic area and are consistent ing), submitted to the Federal Reserve Bank of with the public interest. Atlanta an application for permission to engage It appears that consummation of this proposed de novo, in eleven Georgia communities, in the transaction would not result in any undue concen­ activities of a mortgage company through a newly tration of resources, conflicts of interests, unsound formed subsidiary, Citizens and Southern Mort­ banking practices, or any other adverse effects on gage Company, Inc., Atlanta, Georgia (C&S the public interest. Applicant anticipates that the Mortgage). The application was submitted pursu­ proposed affiliation will enable Company to offer ant to section 4(c)(8) of the Bank Holding Com­ higher risk loans and, as hereinbefore stated, pro­ pany Act of 1956, as amended, 12 U.S.C. § Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 275 1843(c)(8), in the manner and form specified by legality of the corporate structure of Citizens and Part 225.4(b)(1) of the Board’s Regulation Y, 12 Southern National Bank under 12 U.S.C. §21 et C.F.R. § 225.4(b)(1). The application proposed seq., and (2) whether Citizens and Southern Na­ that C&S Mortgage would engage in the activities tional Bank violated 12 U.S.C. § 24 when, in of: 1965, it merged under its sole ownership both the legal and beneficial interest in shares of stock of (1) Making or acquiring, for its own account or for C&S Holding that had previously been held in trust the account of others, loans and other extensions of for the benefit of the bank’s own shareholders. credit (including issuing letters of credit and accepting Accordingly, it is hereby ordered that a public drafts), such as would be made, for example, by a hearing be held with respect to this application mortgage company; at the Federal Reserve Bank of Atlanta, Atlanta, (2) Servicing loans and other extensions of credit for Georgia 30303. Such hearing shall commence on any person; a date to be designated by the Administrative Law (3) Acting as investment or financial adviser, including (i) serving as the advisory company for a mortgage or Judge and shall be conducted in accordance with a real estate investment trust and (ii) furnishing eco­ the Board’s Rules of Practice for Formal Hearings nomic or financial information. (12 C.F.R. Part 263). It is further ordered that the Board hereby On June 1, 1972, the Federal Reserve Bank of designates the Honorable James W. Mast, a duly Atlanta, acting pursuant to authority delegated by qualified Administrative Law Judge, to preside at the Board of Governors, 12 C.F.R. § 265.2(f)(20), the aforesaid hearing. The Administrative Law approved the subject application. The Reserve Judge may, in his discretion, convene a prehearing Bank’s action was then appealed to the Board, by conference or conferences at any convenient time a participant in the proceedings before the Reserve or place. Bank, pursuant to Part 265.3 of the Board’s Rules It is further ordered that the Board hereby Regarding Delegation of Authority, 12 C.F.R. § designates Stephen L. Siciliano and Allan Schott, 265.3. After reviewing the matter de novo, the Board staff attorneys, to serve as Board counsel Board issued an Order approving the subject ap­ at the aforesaid hearing. plication on August 31, 1973 (38 Federal Register It is further ordered that the issue to be consid­ 24932). ered at the hearing is whether the acquisition of Upon judicial review of the Board’s Order, the C&S Mortgage by C&S Holding can reasonably United States Court of Appeals for the District of be expected to produce benefits to the public, such Columbia Circuit has remanded the case to the as greater convenience, increased competition, or Board with instructions to conduct a hearing on gains in efficiency that outweigh possible adverse the application pursuant to the Board’s Rules of effects, such as undue concentration of resources, Practice for Formal Hearings, 12 C.F.R. § 263. decreased or unfair competition, conflicts of inter­ Independent Bankers Association of Georgia v. est, or unsound banking practices. In balancing Board of Governors of the Federal Reserve Sys­ the public benefits and possible adverse effects, tem, 516 F.2d 1206 (D.C. Cir. 1975). the question of whether C&S Mortgage’s offices In remanding this case to the Board for a hear­ would constitute branch banks in violation of Fed­ ing, the Court of Appeals expressly directed the eral and Georgia law, and the charges of undue Board to consider whether C&S Mortgage’s of­ concentration and decreased competition referred fices would constitute branch banks in violation to by the Court of Appeals, will also be consid­ of Federal and Georgia law; and the Court also ered. This designation of specific questions to be concluded that “the Board erred in not honoring considered is not intended to be exclusive and does [Petitioner’s] request for a hearing in which to not preclude consideration of additional related develop its charges of ‘undue concentration’ and matters and questions at the discretion of the ‘decreased competition.’” However, the Court Administrative Law Judge. held that the Board need not hold a hearing on It is further ordered, that any person desiring two other issues raised by Petitioner that are legal to give testimony, present evidence, or otherwise issues on which the Board, in the Court of Ap­ participate in these proceedings shall file with the peals’ view, reached correct conclusions of law. Secretary, Board of Governors of the Federal These latter two issues, which are not covered by Reserve System, Washington, D.C. 20551, on or the instant Order for Hearing, involve (1) the before March 8, 1976, a written request containing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 Federal Reserve Bulletin □ March 1976 a detailed statement of the nature of the requestor’s will be notified of his decision. Failure to comply interest in the proceedings, the extent of the par­ with any of the above requirements regarding ticipation desired, a summary of the matters con­ submission of comments and requests for partici­ cerning which the requestor desires to give testi­ pation shall constitute sufficient ground for rejec­ mony or submit evidence, and a statement of the tion by the Administrative Law Judge of such reasons why effective presentation of those matters comments or requests. Petitioners in the Court of requires participation in the manner and to the Appeals, the Independent Bankers Association of extent requested. Any requestor seeking partici­ Georgia, will, in light of the Court’s decision, be pation more extensive than the submission of granted intervention as a matter of right upon written comments shall, in his statement to the submission of their request in conformity with Secretary, address the questions of whether he is these requirements. Submission of the names and likely to suffer injury in fact as a result of Board identities of possible witnesses can be made to the action on the application and whether his asserted Administrative Law Judge at such time as the date interest is within the zone of interests protected for the hearing has been determined, or at such by the Bank Holding Company Act, 12 U.S.C. other time as the Administrative Law Judge shall § 1841 et seq. Any person desiring to submit direct. substantive written comments on the application By order of the Board of Governors, effective must file said comments with the Secretary, Board February 13, 1976. of Governors of the Federal Reserve System, Voting for this action: Vice Chairman Mitchell, Washington, D.C. 20551, on or before March 8, Governors Wallich, Coldwell, Jackson, and Partee. 1976. All such requests and comments will be Absent and not voting: Chairman Burns, and Governor submitted to the Administrative Law Judge for his Holland. determination—as to intervention, participation (Signed) Theodore E. Allison, and admissibility—and persons submitting same [seal] Secretary of the Board. Orders Approved Under Bank H olding Company Act— By the Board of Governors During February 1976, 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 Abilene Company, The Abilene National 2/10/76 41 F.R. 7178 Abilene, Kansas Bank, Abilene, Kansas 2/17/76 First Bancorp, Inc., Hillsboro State Bank, 2/5/76 41 F.R. 6333 Corsicana, Texas Hillsboro, Texas 2/12/76 Great Lakes Financial First National Bank 2/27/76 41 F.R. 9935 Corporation, Grand and Trust Company, 3/8/76 Rapids, Michigan Petosky, Michigan Woodfield Investment Woodfield Bank, 2/18/76 41 F.R. 8831 Corporation, Schaumburg, Schaumburg, Illinois 3/1/76 Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 277 Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation West Point First National First National of 2/13/76 41 F.R. 8232 Co., Lincoln, Nebraska West Point Agency, Inc., 2/25/76 West Point, Nebraska Sections 3 and 4 Board action Federal Nonbanking company (effective Register Applicant Bank(s) (or activity) date) citation Central Missouri Exchange Bank of General insurance 2/6/76 41 F.R. 6804 Bancshares, Inc., New Franklin, agency activities 2/13/76 Smithton, Missouri Missouri, New Franklin, Missouri, and The Smithton Bank, Smithton, Missouri By Federal Reserve Banks During February 1976, applications were approved by the Federal Reserve Banks 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 Chester Insurance State Bank of Chester, Kansas City 2/3/76 41 F.R. 6334 Agency, Inc., Chester, Nebraska 2/12/76 Chester, Nebraska United Missouri The Park Bank of Kansas City 2/3/76 41 F.R. 6335 Bancshares, Inc., St. Joseph, 2/12/76 Kansas City, Missouri Missouri Orders Approved Under B ank M erger Act— Federal Reserve Effective Register Applicant Bank(s) Bank date citation Massachusetts Bay Yankee Bancorpora- Boston 2/18/76 41 F.R. 8832 Bancorp, Inc., tion, Gloucester, 3/1/76 Lawrence, Mass- Massachusetts achusetts United Counties Springfield New York 2/10/76 41 F.R. 8431 Trust Company, State Bank, 2/26/76 Elizabeth, New Springfield, Jersey New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 Federal Reserve Bulletin □ March 1976 Pending Cases Involving the Board of Governors* Association of Bank Travel Bureaus, Inc. v. consolidated in U.S.C.A. for the Fifth Cir­ Board of Governors, filed February 1976, cuit. U.S.C.A. for the Seventh Circuit. Henry M. Smith v. National Bank of Boulder, Memphis Trust Company v. Board of Gover­ et. al., filed June 1975, U.S.D.C. for the norsfiled February 1976, U.S.D.C. for the Northern District of Texas. Western District of Tennessee. Bank of Boulder v. Board of Governors, et. First Lincolnwood Corporation v. Board of al., filed June 1975, U.S.C.A. for the Tenth Governors, filed February 1976, U.S.C.A. Circuit. for the Seventh Circuit. $ David R. Merrill, et. al., v. Federal Open Helen C. Hatten, et. al. v. Board of Governors, Market Committee of the Federal Reserve filed January 1976, U.S.D.C. for the District System, filed May 1975, U.S.D.C. for the of Connecticut. District of Columbia (motion for recon­ International Bank v. Board of Governors, sideration). filed December 1975, U.S.C.A. for the Sixth Curvin J. Trone v. United States, filed April Circuit. 1975, U.S. Court of Claims. Robert Farms, Inc. v. Comptroller of the Cur­ Richard S. Kaye v. Arthur F. Burns, et. al., rency et. al., filed November 1975, U.S.D.C. filed April 1975, U.S.D.C. for the Southern for the Southern District of California. District of New York. National Computer Analysts, Inc. v. Decimus Louis J. Roussel v. Board of Governors, filed Corporation, et. al., filed November 1975, April 1975, U.S.D.C. for the Eastern District U.S.D.C. for the District of New Jersey. of Louisiana. Peter E. Blum v. First National Holding Cor­ Georgia Association of Insurance Agents, et. poration, filed November 1975, U.S.D.C. for al., v. Board of Governors, filed October the Northern District of Georgia. 1974, U.S.C.A. for the Fifth Circuit. Harlan National Co. v. Board of Governors, Alabama Association of Insurance Agents, et. filed November 1975, U.S.C.A. for the al., v. Board of Governors, filed July 1974, Eighth Circuit. U.S.C.A. for the Fifth Circuit, Peter E. Blumv. Morgan Guaranty Trust Co., t Investment Company Institute, v. Board of et. al., filed October 1975, U.S.D.C. for the Governors, dismissed July 1975, U.S.D.C. Northern District of Georgia, for the District of Columbia, appeal pending, t A.R. Martin-Trigona v. Board of Governors, U.S.C.A. for the District of Columbia Cir­ et. al., filed September 1975, U.S.D.C. for cuit. the Northern District of Illinois, t George Brice, Jr., et. al., v. Board of Gover­ t A.R. Martin-Trigona v. Board of Governors, nors, filed April 1974, U.S.C.A. for the et. al., filed September 1975, U.S.D.C. for Ninth Circuit. the Northern District of Illinois, (motion for East Lansing State Bank v. Board of Gover­ reconsideration). nors, filed December 1973, U.S.C.A. for the Logan v. Secretary of State, et. al., filed Sep­ Sixth Circuit, tember 1975, U.S.D.C. for the District of t Consumers Union of the United States, Inc., Columbia. et. al., v. Board of Governors, filed Sep­ Florida Association of Insurance Agents, Inc., tember 1973, U.S.D.C. for the District of v. Board of Governors, and National Asso­ Columbia. ciation of Insurance Agents, Inc. v. Board Bankers Trust New York Corporation v. Board of Governors, filed August 1975, actions of Governors, filed May 1973, U.S.C. A. for the Second Circuit. *This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named as a party. t Decisions have been handed down in these cases, subject tThe Board of Governors is not named as a party in this to appeals noted. action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

279 Announcements SUPPLEM ENTAL offices—construction and land development loans; other loans secured primarily by real FINANCIAL REPORT estate except 1- to 4-family residential prop­ erty; commercial and industrial loans; and The Board of Governors on March 10, 1976, other loans except loans to individuals and announced details of a four-part report that must on 1- to 4-family residences—and loans at be filed by large State member banks to supple­ the bank’s foreign offices and at its Edge Act and Agreement subsidiaries.1 Informa­ ment the basic quarterly financial reports required tion is also required on the amount of loans of all Federally regulated banks. whose interest rates are linked to the prime The four “large bank supplements” constitute or other money market rates and the amounts an extension of the current overhaul of financial not so linked. reporting to Federal regulators by banks, effective 2. Maturity distribution op deposits. This supplement requires information on time with reports for March 31, 1976. One principal certificates of deposit of $100,000 or more objective of the revision is to provide the public issued by domestic offices and on total in­ with improved information as to the financial con­ terest-bearing deposits in foreign offices, dition of banks. All parts of the revised reports, showing separately for each the amounts of such deposits that will mature in 3 months including the large-bank supplements, will be or less; over 3 months through 6 months; available to the public on request. over 6 months through 1 year; and over 1 On December 17, 1975, the Board, together year. with other Federal bank regulatory agencies, an­ 3. Securities held in trading accounts in nounced changes to be required this year in the domestic offices. This report requires infor­ mation on the current amount as of the date two basic financial reports the banks make to of the report, and also on the daily average Federal regulators: the Report of Income and the for the period reported on, of the large Report of Condition. banks’ holdings in their trading accounts of The supplements to these two reports, effective four groups of securities: U.S. Treasury securities; other U.S. obligations of other with reports for March 31, 1976, apply to all State U.S. Government agencies and corpora­ member banks with domestic and foreign assets tions; obligations of States and political at the end of 1975 of $300 million or more. The subdivisions; and other bonds, notes, and Comptroller of the Currency, which supervises debentures. national banks, and the Federal Deposit Insurance 4. Summary loan loss experience and reserve for possible loan losses. Information Corporation, which supervises Federally insured is required on loan loss reserves at the be­ State nonmember banks, are requiring identical ginning and end of the reporting period; supplementary reports from banks with domestic changes during the period incident to merg­ and foreign assets of $300 million or more that ers and absorptions; provisions for loan losses; and charge-offs and recoveries during report to them. the period for specified classes of loans at Examples of the forms that will be used in filing domestic offices and for loans at foreign the supplements are being sent to the chief execu­ offices. tive officer of each State member bank affected. The large-bank supplements cover the following 1Edge Act Corporations are Federally chartered cor­ areas of information on banks’ financial condition porations authorized to engage in international or and operations: foreign banking or other international or foreign finan­ cial operations. Agreement Corporations are State-char­ 1. Remaining maturities of specified types tered companies organized to conduct an international of loans. Information on the length of time banking business in which a national bank is permitted five types of loans have yet to run before to invest pursuant to an agreement with the Federal the loans are due to be paid off. This in­ Reserve Board of Governors concerning the company’s cludes four types of loans at domestic activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 Federal Reserve Bulletin □ March 1976 The large-bank supplements were developed Lawrence K. Roos, Executive Vice President following a proposal for supplementary large-bank of the First National Bank in St. Louis, has been reporting published for comment on October 1, appointed President of the Federal Reserve Bank 1975. Some additions to the large-bank supple­ of St. Louis, effective March 22, 1976. A graduate ments may be announced at a later time following of Yale University, Mr. Roos succeeds Darryl R. further discussion with the Securities and Ex­ Francis, who retired at the end of February. change Commission. As announced earlier, the Federal bank regulatory agencies will also intro­ duce later this year a fully consolidated (foreign AGGREGATE RESERVES and domestic office) condition statement and also AND M EM BER BANK DEPOSITS: subsidiary condition and income reports to provide breakdowns between domestic and foreign opera­ Revision of Data tions. Data on aggregate reserves and member bank deposits, Table A13 in the Bulletin, have been revised to reflect new seasonal factors. In addition, REGULATION Q: Am endm ent the aggregate reserve series reflect a new seasonal adjustment procedure. A brief description of this The Board of Governors on March 1, 1976, new procedure and a summary of the impact of amended its Regulation Q to permit member com­ seasonal factor changes on aggregate reserves and mercial banks throughout New England to offer on member bank deposits will appear in a forth­ NOW accounts to their customers. coming Bulletin article. Historical data are The action was taken in light of legislation available on request from the Board’s Banking effective February 27, 1976, authorizing NOW Section, Division of Research and Statistics. accounts in four additional New England States. Congress had previously authorized NOW ac­ counts in Massachusetts and New Hampshire on OTC M ARGIN STOCKS: an experimental basis. A customer holding a NOW account may write Change in List negotiable orders of withdrawal (NOW’s) against The Board of Governors announced on March 12, the account and at the same time receive interest 1976, several changes in its List of OTC Margin on the funds retained in the account. Stocks that was issued in revised form on Sep­ tember 29, 1975. The changes are available on request from Publications Services, Division of APPOINTM ENT o f t w o Administrative Services, Board of Governors of f e d e r a l r e s e r v e b a n k the Federal Reserve System, Washington, D.C. 20551. PRESIDENTS Roger Guffey, Senior Vice President, General Counsel, and Secretary of the Federal Reserve SYSTEM M EM BERSHIP: Bank of Kansas City, has been appointed President Admission of State Bank of the Bank, following the February 29 retirement of George H. Clay. Mr. Guffey, who joined the The following bank was admitted to membership Bank in 1968, received B.S. and J.D. degrees in the Federal Reserve System during the period from the University of Missouri at Columbia and February 16, 1976, through March 15, 1976: has completed the Advanced Management Pro­ gram at the Harvard University Graduate School Maryland of Business. Thurmont ..........................The Thurmont Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

281 Industrial Production Released for publication March 16 increased at more moderate rates, which have continued in February. Industrial production increased an estimated 0.6 per cent in February following revised increases Seasonally adjusted, ratio scale, 1967=100 140 MATERIALS of 0.5 and 0.9 per cent in January and December, ~ respectively. At 119.9 per cent of the 1967 120 / s \ \ J - /^PRODUCTS, 'X? average, the index has risen about 9 per cent since TOTAL \J 100 the April 1975 low. Increases in February were 1 1 1 1 1 concentrated in automotive products and materials production. Output of consumer durable goods increased as the result of a rise in auto production. Auto as­ semblies increased nearly 7 per cent to an annual rate of 8.1 million units. Reflecting recent strong sales, assemblies are scheduled at rates of 8.3 and 8.6 million units for March and April. Nondurable consumer goods production, which had already exceeded prerecession highs, advanced somewhat further in February. Business equipment is esti­ mated to have been unchanged in February, fol­ lowing moderate increases since July. Durable goods materials increased further in February—reflecting, in part, a rise in steel output. Following sharp gains in the second and third F.R 1 . 9 7 i 0 n dexe 19 s 7 , 2 seas 1 o 9 n 74 a lly a 1 d 97 j 6 u sted 1 . 97 L 0 atest 1 9 f 7 i 2 g ures 1 : 97 F 4 ebrua 19 r 7 y 6 . quarters of 1975, nondurable goods materials have *Auto sales and stocks include imports. Seasonally adjusted, 1967 := 100 Per cent changes from— Industrial production 1975 1976 «Nov. Dec. Jan.p Feb.6 Month Year Q3 to ago ago Q4 Total .......................................................... 117.5 118.6 119.2 119.9 .6 7.8 3.0 Products, total .................................................... 117.9 119.5 120.6 120.9 .2 6.3 1.8 Final products ................................................. 117.9 119.3 120.5 120.7 .2 6.4 1.6 Consumer goods .......................................... 128.5 129.7 131.6 132.6 .8 11.5 1.9 Durable goods ......................................... 118.8 119.8 121.8 123.2 1.1 22.0 1.8 Nondurable goods .................................... 132.7 133.9 135.3 135.9 .4 8.2 2.2 Business equipment ..................................... 116.7 118.4 118.8 118.8 -.4 1.8 Intermediate products ...................................... 118.5 119.6 122.6 122.5 -Vi 6.4 2.6 Construction products .................................. 112.5 111.6 115.4 116.0 .5 3.5 2.2 Materials ............................................................ 116.7 117.0 117.6 118.5 .8 10.3 5.0 p Preliminary. Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS INSIDE BACK COVER A32 Federal finance A34 U.S. Government securities Guide to Tabular Presentation A37 Federally sponsored credit agencies Statistical Releases: Reference A38 Security issues A40 Business finance U.S. STATISTICS A42 Real estate credit A2 Member bank reserves, Reserve Bank A45 Consumer credit credit, and related items A48 Industrial production A5 Federal funds—Money market banks A50 Business activity A6 Reserve Bank interest rates A50 Construction A7 Reserve requirements A52 Labor force, employment, and A8 Maximum interest rates; margin unemployment requirements A9 Open market account A53 Consumer prices A10 Federal Reserve Banks A53 Wholesale prices All Bank debits A54 National product and income A12 Money stock A56 Flow of funds A13 Bank reserves; bank credit A14 Commercial banks, by classes INTERNATIONAL STATISTICS A18 Weekly reporting banks A58 U.S. balance of payments A23 Business loans of banks A59 Foreign trade A24 Demand deposit ownership A59 U.S. reserve assets A25 Loan sales by banks A60 Gold reserves of central banks and A25 Open market paper governments A26 Interest rates A61 International capital transactions A29 Security markets of the United States A29 Stock market credit A74 Open market rates A30 Savings institutions A75 Central bank rates A75 Foreign exchange rates A82 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 BANK RESERVES AND RELATED ITEMS □ MARCH 1976 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities1 Special ury Drawing cur­ Gold Rights rency Held Other stock certificate out­ Bought under Loans Float 3 F.R. Totals account stand­ Total out­ repur­ assets4 ing right 2 chase agree­ ment Averages of daily figures 1939—Dec............................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec............................. 2,219 2,219 5 170 2,404 22,759 3*239 1945—Dec............................. 23,708 23,708 381 652 24,744 20,047 4*322 1950—Dec............................. 20,345 20,336 9 142 1,117 21,606 22,879 4 * 629 I960—Dec............................. 27,248 27,170 78 94 1,665 29,060 17,954 5*396 1969—Dc 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—De c 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975 _Feb.............................. 84,744 83,843 901 147 2,079 3,419 91,168 11,626 400 9,284 Mar............................. 84,847 84,398 449 106 1,994 3,142 90,819 11,620 400 9,362 Apr.............................. 87,080 86,117 963 110 2,061 3,237 93,214 11,620 400 9,410 May............................ 91,918 89,355 2,563 60 1,877 3,039 97,845 11,620 429 9,464 June............................ 88,912 87,618 1,294 271 2,046 3,098 95,119 11,620 500 9,536 July............................. 88,166 87,882 284 261 1,911 3,100 94,144 11,620 500 9,616 Aug............................. 86,829 86,348 481 211 1 ,691 2,953 92,395 11,604 500 9,721 Sept............................. 89,191 87,531 1,660 396 1,823 3,060 95,277 11,599 500 r9,797 Oct.............................. 90,476 89,547 929 191 1,945 3,521 96,931 11,599 500 9,877 Nov............................. 90,934 89,560 1,374 61 2,480 3,481 97,817 11,599 500 10,010 Dec............................. 92,108 91,225 883 127 3,029 3,534 99,651 11,599 500 10,094 1976—Jan.............................. 92,998 91,524 1,474 79 2,684 3,505 100,172 11,599 500 10,177 Feb.**.................. 94,610 92,812 1,798 76 2,395 3,384 101,389 11,599 500 10,271 Week ending— 1975—Dec. 3..................... 91,961 90,887 1,074 66 2,661 3,279 98,850 11,599 500 10,102 10................... 89,531 89,009 522 28 2,347 3,486 96,170 11,599 500 10,081 17................... 90,625 90,625 44 2,626 3,557 97,585 11,599 500 10,087 24................... 94,134 92,580 1,554 219 3,144 3,356 101,720 11,599 500 10,099 31................... 94,468 92,978 1,490 253 4,634 3,466 103,807 11,599 500 10,118 1976—Jan. 7..................... 94,151 92,462 1,689 67 3,450 3,501 102,215 11,599 500 10,119 14..................... 90,940 90,940 45 2,846 3,414 97,987 11,599 500 10,139 21..................... 91,705 91,070 635 153 2,380 3,373 98,361 11,599 500 10,157 28..................... 94,040 91,480 2,560 58 2,401 3,622 101,088 11,599 500 10,246 Feb. 4..................... 95,470 91,928 3,542 57 2,170 3,671 102,509 11,599 500 10,263 11..................... 91,827 91,827 51 2,359 3,683 98,652 11,599 500 10,256 ISP............. 94,396 92,718 1,678 56 2,196 3,535 101,003 11,599 500 10,257 25*................... 96,610 93,573 3,037 148 2,942 2,959 103,694 11,599 500 10,269 End of month 1975—De c 94,124 92,789 1,335 211 3,688 3,312 102,461 11,599 500 10,218 1976—Ja...............................n 96,5.8...8..............9..1..,850 4,738 66 1,620 3,676 103,180 11,599 500 10,275 Feb .p......................... 95,667 94,354 1,313 51 1,620 3,062 101,451 11,599 500 10,367 Wednesday 1975—Dec. 3..................... 90,231 89,597 634 66 2,811 3,370 97,416 11,599 500 10,077 10..................... 88,758 88,758 31 3,273 4,302 97,088 11,599 500 10,087 1 7 89,885 89,885 66 3,635 3,631 97,943 11,599 500 10,087 24..................... 94,459 92,777 1,682 1,263 4,856 3,366 104,914 11,599 500 10,099 31..................... 94,124 92,789 1,335 211 3,688 3,312 102,461 11,599 500 10,218 1976—Jan. 7................... 91,872 90,810 1,062 41 3,586 3,443 99,896 11,599 500 10,138 14................... 91,507 91,507 48 3,448 3,362 99,100 11,599 500 10,142 21................... 92,068 92,068 843 2,387 3,395 99,429 11,599 500 10,243 28................... 98,344 91,833 6,511 138 2,594 3,668 105,900 11,599 500 10,250 Feb. 4................... 94,918 91,899 3,019 44 2,715 3,684 102,406 11,599 500 10,256 11................... 92,610 92,610 62 2,311 3,672 99,375 11,599 500 10,256 18 p................. 95,357 92,870 2,487 58 2,875 3,036 102,329 11,599 500 10,261 25p................. 99,554 93,549 6,005 688 2,721 3,021 107,180 11,599 500 10,272 1 Includes Federal agency issues held under repurchase agreements liabilities and capital” are shown separately; formerly, they were netted beginning Dec. 1, 1966, and Federal agency issues bought outright be­ together and reported as “Other F.R. accounts.” ginning Sept. 29, 1971. 5 Includes industrial loans and acceptances until Aug. 21, 1959, when 2 Includes, beginning 1969, securities loaned—fully guaranteed by JJ.S. industrial loan program was discontinued. For holdings of acceptances Govt, securities pledged with F.R. Banks, and excludes (if any), securities on Wed. and end-of-month dates, see p. A-10. See also note 3. sold and scheduled to be bought back under matched sale-purchase 6 Includes certain deposits of domestic nonmember banks and foreign transactions. owned banking institutions held with member banks and redeposited in 3 Beginning 1960 reflects a minor change in concept; see Feb. 1961 Bulletin, p, 164. Notes continued on opposite page. 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ BANK RESERVES AND RELATED ITEMS A3 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 Cur­ Treas­ reserves Other reserves rency ury with F.R. Banks Other F.R. Period or date in cash F.R. lia­ cir­ hold­ bilities cula­ ings counts4 and With Cur­ tion Treas­ For­ capital4 F.R. rency Total 8 ury eign Banks and coin7 Averages of daily figures 7,609 2,402 616 72$9 248 11,473 11,473 .........................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .........................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .........................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .........................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .........................1960—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .........................1969—Dec. 57,013 427 849 145 735 2.265 23,925 5,340 29,265 ..........................1970—Dec. 61,060 453 1.926 290 728 2,287 25,653 5,676 31 ,329 ..........................1971—Dec. 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 ......................... 1972—Dec. 71,646 323 1,892 406 717 2,942 28,352 6,635 35,068 ......................... 1973—Dec. 78,951 220 1,741 357 874 3.266 29,767 7,174 36,941 ......................... 1974—Dec. 76,979 236 2,374 317 711 3,358 28,503 7,062 35,565 ....................... 1975—Feb. 77,692 277 1 ,887 363 958 3,076 27,948 6,831 34,779 .......................................Mar. 78,377 309 3,532 307 718 3,137 28,264 6,870 35,134 ......................................Apr. 79,102 326 8,115 262 746 3.231 27,576 6,916 34,492 .....................................May 80,607 355 3,353 272 989 3,191 28,007 6,969 34,976 ......................................June 81,758 358 2,207 269 711 3,135 27,442 7,213 34,655 ......................................July 81,822 368 818 274 660 3,096 27,183 7,299 34,482 ......................................Aug. '81,907 r362 3,415 308 798 3,169 27.215 7,431 34,646 ....................................Sept. 82,215 387 4,940 271 632 3,208 27,254 7,313 34,567 ....................................Oct. 83,740 415 4,333 297 649 3,276 27.215 7,356 34,571 ......................................Nov. 85,810 452 3,955 259 906 3,247 27.215 7,773 934,989 ....................................Dec. 84,625 496 5,903 287 916 3,225 26,995 8,445 935,575 ..........................1976—Jan. 84,007 525 8,811 280 716 3.231 26,188 7,652 933,979 ........................................Feb? Week ending— 84,742 460 4,124 305 877 3,297 27,245 7,572 34,817 ................. 1975—Dec. 3 85,222 462 1,865 243 921 3,044 26,594 7,825 34,419 .........................................10 85,686 449 1,943 244 979 3,158 27,312 7,827 35,139 ...........................................17 86,120 445 5,533 254 866 3,355 27,345 7,491 34,836 ...........................................24 86,569 448 6,777 293 891 3,477 27,569 8,036 935,611 ..........................................31 86,011 478 5,939 278 1,185 3,059 27,483 7,937 935,551 ...................1976—Jan. 7 85,140 496 3,414 338 903 3,167 26,766 8,903 935,802 .........................................14 84,288 519 4,040 304 922 3,219 27,324 8,733 936,193 ..........................................21 83,581 521 8,385 230 772 3,359 26,585 8,349 935,072 ..........................................28 83,406 537 9,805 268 730 3,312 26,815 8,116 935,069 ...............................Feb. 4 83,951 529 6,966 247 688 3,038 25,590 8,050 933,779 ..........................................11 84,369 533 7,354 279 673 3,225 26,926 7,539 934,604 ..............................18? 84,061 521 10,783 278 692 3.347 26,380 7,145 933,664 .........................................25 p End of month 86,547 483 7,285 353 1,090 2,968 26,052 8,036 934,094 ..........................1975—Dec. 83,231 541 10,075 294 651 3,459 27,306 8,116 935,560 ..........................1976—Jan. S3,878 500 10.366 412 809 3,396 24,555 7,573 932,268 .....................................Feb.* Wednesday 85,146 478 2,289 229 796 3,011 27,643 7,572 35,215 ................. 1975—Dec. 3 85,773 460 1,032 238 1,846 3,093 26,832 7,825 34,657 .........................................10 86,033 438 4,007 226 897 3,214 25,314 7,827 33,141 ..........................................17 86,608 434 6,491 253 925 3,471 28,930 7,491 36,421 ..........................................24 86,547 483 7,285 353 1,090 2,968 26,052 8,036 934,094 ..........................................31 85,712 487 2,246 244 909 3,068 29,466 7,937 937,534 .................1976—Jan. 7 84,950 502 4,217 235 969 3,166 27,301 8,903 936,337 .........................................14 84,130 518 4,682 248 943 3,254 27,996 8,733 936,865 .........................................21 83,609 513 10,360 209 627 3,427 29,503 8,349 937,990 ...................................... .28 83,750 531 7,800 225 717 2,986 28,751 8,116 937,005 .............................Feb. 4 84,463 517 6,705 257 594 3,096 26,097 8,050 934,286 .........................................11 84,584 523 9,603 252 501 3,224 26,003 7,539 933,681 .............................18* 84,135 523 10,836 261 975 3,435 29,385 7,145 936,669 .........................................25p full with F.R. Banks in connection with voluntary participation by non­ 8 Beginning week ended Nov. 15, 1972, includes $450 million of reserve member institutions in the F.R. System’s program of credit restraint. deficiencies on which F.R. Banks are allowed to waive penalties for tran­ As of Dec. 12, 1974, the amount of voluntary nonmember and foreign- sition period associated with bank adaptation to Regulation J as amended agency and branch deposits at F.R. Banks associated with marginal re­ effective Nov. 9, 1972. For 1973, allowable deficiencies included are (be­ serves are no longer reported. Deposits voluntarily held by agencies and ginning with first statement week of quarter): Ql, $279 million; Q2, $172 branches of foreign banks operating in the United States as reserves and million; Q3, $112 million; Q4, $84 million. For 1974, Ql, $67 million, Euro-dollar liabilities are reported. Q2, $58 million. Transition period ended after 1974, Q2. 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 9 Beginning with week ending Nov. 19, 1975, adjusted to include thereafter. Beginning Jan. 1963, figures are estimated except weekly waivers of penalties for reserve deficiencies in accordance with Regula­ averages. Beginning Sept. 12, 1968, amount is based on close-of-business tion D change effective Nov. 19, 1975. figures for reserve period 2 weeks previous to report date. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 BANK RESERVES AND RELATED ITEMS □ MARCH 1976 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held i quired sonal ings ings ings ings 1939—Dec..................... 11,473 6,462 5,011 3 2,611 540 1,188 671 3 1941—Dec..................... 17,812 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 17,391 16,364 1,027 142 125 58 8 5 232 50 663 29 I960—Dec..................... 19,283 18,527 756 87 29 19 4 8 100 20 623 40 1965—Dec...................... 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—Dec..................... 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec..................... 77,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec..................... 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec..................... 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec..................... 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—Dec..................... 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Dec..................... 35,068 34,806 262 1,298 4\ -23 74 43 28 28 761 133 435 1974—Dec..................... 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—Feb...................... 35,565 35,333 232 147 10 31 37 17 10 41 29 143 71 Mar..................... 34,779 34,513 266 106 7 53 22 20 10 56 28 137 46 Anr...................... 35,134 35,014 120 110 7 32 25 -23 14 -4 38 115 33 May 34,492 34,493 -1 60 9 -28 24 -21 -89 13 137 23 34,976 34,428 548 271 11 142 90 47 2 217 114 142 65 July..................... 34,655 34,687 -32 261 17 -22 54 -24 23 -118 62 132 122 34,482 34,265 217 2.11 38 -18 14 5 1 98 51 132 145 34,646 34,447 199 396 61 17 68 27 2 23 141 132 185 34,567 34,411 156 191 65 42 31 -23 3 32 134 128 Nov..................... 34,571 34,281 290 61 28 50 7 34 42 5 164 49 Dec...................... 34,989 34,727 262 127 13 64 63 -18 89 26 127 38 1976—jan...................... 35,575 35,366 209 79 9 52 9 -18 17 3 13 172 40 Feb.23.................. 33,979 33,933 46 76 10 -223 20 -54 1 -141 16 166 39 Week ending— 1975—Feb. 5............ 36,974 36,579 395 98 11 133 33 84 12 145 86 12............ 36,029 35,970 59 90 10 -37 6 -20 -5 15 121 69 19............. 35,118 34,960 158 229 11 140 -22 —18 20 198 69 26............. 34,606 34,447 159 180 10 -15 29 39 35 71 110 70 Aug. 6............. 34,553 34,354 199 180 29 13 10 31 14 145 166 13............. 34,163 34,147 16 179 35 -46 47 -22 6 -45 18 129 108 20............. 34,629 34,418 211 204 37 -4 19 73 77 123 127 27............. 34,470 34,174 296 272 40 127 15 -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 11 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 39 33 94 12 178 121 22............. 34,576 34,577 -1 232 63 -8 97 -18 -35 22 60 113 29............. 34,715 34,437 278 94 60 102 15 33 7 128 87 Nov. 5............. 34,886 34,082 804 67 41 355 18 240 191 67 12............. 33,754 33,791 -37 39 26 — 119 -6 — 71 4 159 35 19............. 34,741 34,567 174 58 26 34 -1 7 11 134 47 26............. 34,684 34,500 184 73 26 3 16 20 55 3 106 54 Dec. 3............. 34,817 34,504 313 66 21 119 16 -18 61 6 151 44 10............. 34,419 34,276 143 28 14 -56 26 37 1 136 27 17............. 35,139 34.906 233 44 13 111 -12 6 11 128 33 24............. 34,836 34,625 211 219 12 7 140 -5 75 42 134 37 31............. 335,611 35,197 414 253 13 57 140 20 129 57 208 56 1976—Jan. 7............. 335,551 35,227 324 67 10 59 -12 102 11 175 56 14............. 335,802 35,639 163 45 8 71 -2 -94 2 188 43 21............. 336,193 35,996 197 153 10 -62 28 -2 77 91 18 170 30 28............. 335,072 34.907 165 58 8 49 10 28 -23 15 111 33 Feb. 4............. 335,069 34,652 417 57 12 94 -14 139 16 198 41 11............ 333,779 33.729 50 51 12 -83 20 -31 14 144 37 18^.......... 334,604 34,034 570 56 10 121 -23 4 -154 10 222 42 25?.......... 333,664 33,770 -106 148 10 -276 82 -48 -251 24 71 42 1 Beginning with week ending Nov. 15, 1972, includes $450 million of for July 1972, p. 626. Categories shown here as “Large” and “All other” reserve deficiencies on which F.R. Banks are allowed to waive penalties parallel the previous “Reserve city” and “Country” categories, respectively for a transition period in connection with bank adaptation to Regulation J (hence the series are continuous over time). as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies 3 Beginning with week ending Nov. 19, 1975, adjusted to include waivers included are (beginning with first statement week of quarter): Ql, $279 of penalties for reserve deficiencies in accordance with Regulation D million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning change effective Nov. 19, 1975. 1974, Ql, $67 million; Q2, $58 million. Transition period ended after second quarter, 1974. For weeks for which figures are preliminary, figures Note.—Monthly and weekly data are averages of daily figures within by class of bank do not add to the total because adjusted data by class are the month or week, respectively. not available. Borrowings at F. R. Banks: Based on closing figures. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­ for reserve-requirement purposes has been based on size of bank (net ing by F.R. Banks, was revised to assist smaller member banks to meet demand deposits of more than $400 million), as described in the Bulletin the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ MONEY MARKET BANKS A5 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 surplus, or deficit ( —) Gross transactions Net transactions Reporting banks and Total Bor­ week ending— Excess Net Per cent two-way Pur­ Loans row­ Net re­ Bor­ inter­ of Pur­ trans­ chases Sales to ings loans serves 1 rowings bank Amount avg. chases Sales actions 2 of net of net dealers 3 from at F.R. Federal required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1976—Jan. 7........... 120 11,696 -11,583 71 .3 19,175 7,478 5,623 13,552 1,856 3,293 574 2,720 14........... 15 16,144 -16,130 97.4 22,350 6,206 4,877 17,473 1,329 3,099 376 2,723 2 28 1 . . . . . . . .. .. . . . . .. . . .. . - 8 1 5 10 1 5 0 1124,,101329 - - 1 1 4 2 , , 1 0 4 3 5 8 7 8 6 4 . . 5 7 1 1 9 8 , , 6 3 5 6 7 3 6 5 , , 2 61 5 7 0 4 5 , , 9 2 4 9 3 0 1 1 4 3 , , 7 0 1 72 4 6 9 7 6 5 0 2 2 , , 9 29 8 8 9 4 3 7 2 6 2 2 1 , , 6 8 6 2 7 2 Feb. 4........... 210 11,595 -11,385 72.4 18,090 6,496 5,544 12,547 952 2,432 436 1,996 11........... 56 16,605 -16,551 108.6 23,009 6,405 5,584 17,426 821 2,562 285 2,277 18........... 212 14,526 -14,315 92.1 21,194 6,668 6,246 14,948 422 2,074 297 1,777 25........... -35 13,149 -13,270 87.8 18,675 5,527 5,006 13,669 520 2,133 414 1,718 8 in New York City 1976—Jan. 7........... 25 3,130 -3,106 45.9 4,775 1,645 1,141 3,634 504 1,536 180 1,356 14........... 51 5,574 -5,523 79.8 6,277 704 583 5,694 121 1,655 103 1,552 21........... -23 3,382 -3,433 49.6 4,261 879 695 3,566 184 1,384 78 1,307 28........... 18 2,632 -2,625 41 .3 3,914 1,282 997 2,917 285 1,072 87 985 Feb. 4........... 113 -2,367 36.5 3,735 1,256 1,108 2,627 147 1,301 104 1,197 11........... -17 -5,662 90.8 6,341 696 696 5,645 1,418 81 1,337 18........... 176 -3,673 56.9 5,152 1,304 1,304 3,849 1,061 116 946 25........... -47 82 -3,720 60.3 4,263 672 672 3,590 1,295 97 1,199 38 outside New York City 1976—Jan. 7........... 8,566 -8,478 89.5 14,399 5,833 4,481 9,918 1,352 1,757 394 1,363 14........... 10,571 -10,607 110.0 16,072 5,502 4.294 11,778 1,208 1,444 274 1,170 21........... 10,657 -10,712 109.6 15,396 4,739 4,248 11,148 491 1,605 245 1,360 28........... 9,480 -9,413 100.5 14,449 4,969 4.294 10,155 675 1,226 389 837 Feb. 4........... 9,115 -9,018 97.7 14,356 5,240 4,435 9,920 805 1,131 332 799 11........... 10,960 -10,889 120.9 16,669 5,709 4,888 11,781 821 1,145 204 941 18........... 10,678 -10,642 117.0 16,042 5,364 4,942 11,100 422 1,013 182 832 25........... 9,558 -9,550 106. 14,413 4,854 4,334 10,079 520 837 318 520 5 in City of Chicago 1976—Jan. 7........... 4,428 -4,431 267.6 5,273 845 828 4,445 566 566 14........... 5,433 -5,441 321 .0 6,326 893 863 5,464 589 589 21........... 5,065 -5,149 297.5 6,109 1,044 1,025 5,084 571 571 28........... 4,455 -4,428 276.4 5,692 1,238 1,213 4,479 449 449 Feb. 4........... 4,459 -4,447 278.3 5,707 1,248 1,223 4,484 388 388 11........... 5,096 -5,069 321.8 6,236 1,140 1,109 5,128 425 425 18........... 4,754 -4,738 292.7 6,117 1,363 1,324 4,793 400 400 25........... 4,022 -4,023 256.1 5,451 1,429 1,393 4,057 320 320 33 others 1976—Jan. 7........... 4,138 -4,046 51.8 9,126 4,988 3,653 5,473 1,335 1,191 394 797 14........... 5,137 -5,165 65.0 9,746 4,609 3,432 6,315 1,177 855 274 582 21........... 5,592 -5,564 69.1 9,287 3,695 3,223 6,064 472 1,033 245 789 28........... 5,026 -4,985 64.2 8,757 3,731 3,081 5,676 651 777 389 388 Feb. 4........... 4,656 -4,571 59.9 8,648 3,992 3,212 781 744 332 412 11........... 5,864 -5,820 78.3 10,432 4,569 3,779 790 720 204 516 18........... 5,924 -5,904 79.0 9,925 4,001 3,618 383 613 182 432 25........... 5,536 -5,527 75.0 8,962 3,426 2,941 485 517 318 200 1 Based upon reserve balances, including all adjustments applicable to 3 Federal funds loaned, net funds supplied to each dealer by clearing the reporting period. Prior to Sept. 25, 1968, carryover reserve deficiencies, banks, repurchase agreements (purchases of securities from dealers if any, were deducted. Excess reserves for later periods are net of all carry­ subject to resale), or other lending arrangements. over reserves. Beginning with week ending Jan. 7, 1976, adjusted to 4 Federal funds borrowed, net funds acquired from each dealer by include waivers of penalties for reserve deficiencies in accordance with clearing banks, reverse repurchase agreements (sales of securities to Regulation D change effective Nov. 19, 1975. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by Govt, or other issues. for each bank indicates extent to which the bank’s weekly average pur­ Note.—Weekly averages of daily figures. For description of series chases and sales are offsetting. and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 F.R. BANK INTEREST RATES o MARCH 1976 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sec. 10(b) 2 Loans to all others under Under Secs. 13 and 13a1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 2/29/76 date rate 2/29/76 date rate 2/29/76 date3 rate 2/29/76 date rate Boston..................... 5Vi 1/19/76 6 6 1/19/76 6 Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 New York............... 5Vi 1/19/76 6 6 1/19/76 6Vi 6 Vi 1/19/76 7 8Vi 1/19/76 9 Philadelphia........... 5Vi 1/19/76 6 6 1/19/76 6 Vi 6 Vi 1/19/76 7 8Vi 1/19/76 9 Cleveland................ 5Vi 1/19/76 6 6 1/19/76 6 Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 Richmond............... 5% 1/19/76 6 6 1/19/76 6 Vi 6 Vi 1/19/76 7 81/2 1/19/76 9 Atlanta.................... 5 Vi 1/19/76 6 6 1/19/76 6 Vi 6 Vi 1/19/76 7 8% 1/19/76 9 Chicago................... 5 Vi 1/19/76 6 6 1/19/76 6 Vi 6Vi 1/19/76 7 8Vi 1/19/76 9 51/2 1/23/76 6 6 1/23/76 6 Vi 6 Vi 1/23/76 7 8 Vi 1/23/76 9 Minneapolis........... 5 Vi 1/19/76 6 6 1/19/76 6 Vi 6% 1/19/76 7 8 Vi 1/19/76 9 Kansas City........... 5Vi 1/19/76 6 6 1/19/76 6 Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 Dallas...................... 5% 1/19/76 6 6 1/19/76 6 Vi 6 Vi 1/19/76 7 8Vi 1/19/76 9 San Francisco........ 5Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955........ 2Vi 21/2 1964—Nov. 24. 3 Vi-4 4 1971—Nov. 11............... 434-5 5 30. 4 4 19............... 43,* 434 1956—Apr. 13..................... 2Vi-3 23/4 Dec. 13............... 41/2-434 434 20...................... 234-3 23/4 1965—Dec. 6. 4 -41/2 41/2 1 7 41/2-434 4 Vi 23/4-3 3 13. 41/2 41/2 24............... 41/2 4 Vi 31...................... 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15............... 5 5 1957— N A o u v g. . 2 1 9 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 31 - - / 3 3 2 V i/2 i 3 3 3 1/2 Nov. 2 2 1 7 0 4. . . 4 4 4V -4 i 1/2 4 4 4V V i i M A Fe p a b r r . . . 2 2 2 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1/ 5 2 1 - - / 5 5 2 3 V 4 i 5 5 5 1 V V /2 i i 1958—J D a e n c . . 2 2 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3 4-3 3 3 1968— A M p a r r . . 2 1 1 2 9 5 . . . 4 5 V 5 i - - 5 5 Vi 4 5 5 % Vi May 1 1 4 1. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 6 5 4 Y -6a 6 6 5 *4 Mar. 2 7 4. . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . .. .. . . . . . . . 2 23 V /4 4 - - 3 3 2 2 3 1 / / 4 4 Aug. 2 1 6 6 . . 5 V 5 4 V -5 i Vi 5 5 V V i i June 1 1 1. 5 .. ............ 6 6V -6 i Vi 6 6 V V i i 2 1 1 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21/ 2 4 1 - / 2 4 34 2 2 1 1 / / 4 4 Dec. 3 1 0 8. . 5i/ 5 4 V -5 * Vi 5 5 1 1 / / 4 2 J A u u ly g . 1 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 -71/2 7 7 Vi Apr. 18..................... 134-214 l34 20. 5 Vi 5 Vi 2 3 7Vi 71/2 M Au a g y . 1 9 5. . . . . . . .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . . . . . . . 1 l * 34 1 4 - 3 - 4 2 2 2 l 1 3 % 4 1969—Apr. 4 8 . . 51/ 6 2-6 6 6 1974—Apr. 2 3 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71/ 8 2-8 8 23..................... 2 2 Dec. 9............... 734-8 734 Oct, 24..................... 2 -2 Vi 2 1970—Nov. 11, 5V4-6 6 1 6 734 734 Nov. 7..................... 21/2 2Vi 13, 5^-6 53/4 16, 5% 53/4 1975—Jan. 6............... 7V4-734 734 1959—Mar. 6..................... 2Vi-3 3 Dec. 1 5Vi-53/4 53/4 10............... 71/4-73/4 71/4 May 2 1 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 -3Vi 3 31/2 11 4, , 5 V 5 i V -5 i % 5 51 V /2 i Feb. 2 5 4 ... ........... 634 71 -7 /4 V4 7 6 1 34 /4 June 12..................... 31/2 31/2 7............... 634 63/4 Sept. 11...................... 31/2-4 4 1971—Jan. 8, 5Va-5Vi 51/4 Mar. 10.............. 61/4-634 614 18...................... 4 4 15. 5V* 51/4 14............... 61/4 61/4 1960— S J A u e u p n g t e . . 1 1 1 9 3 0 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 V / 3 3 2 i - V - - 3 4 4 i Vi 4 3 3 3 3 1 1 / / 2 2 J F u e l b y . 2 2 1 1 1 1 9 2 9 6 9 3 , , , 5 4 5 4 3 % / 5 4 4 - - % - - 5 5 5 5 1 1/ 4 4 5 5 5 5 5 4 1 34 /4 1976—J M an ay . 2 2 1 1 3 3 9 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 6 5 V 6 5 i - V - 6 6 i 1 4 6 6 5 5 V V i i 1963—July 17..................... 3 -3 Vi 31/2 23 5 5 In effect, Feb. 29, 1976. 51/2 5 Vi 26................... 31/2 3 Vi Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ RESERVE REQUIREMENTS A7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date 1 Reserve city Other Other time Savings 0-5 Over 5 0-5 | Over 5 0-5 Over 5 In effect Jan. 1, 1963............... 161/z 12 4 1966—July 14,21........... 4 4 5 Sept. 8,15........... 6 1967 Mar. 2................. 31/2 31/2 Mar. 16............... 3 3 1968—Jan. 11,18........... 161/2 17 12 121/2 1969—Apr. 17................ 17 m/2 121/2 13 1970 Oct. 1................... 5 Beginning Nov. 9, 1972 Net demand2,4 Time 3 Other time Effective date 0-5, maturing in— Over 55, maturing in— 0-2 2-10 10-100 100- Over Savings 400 400 180 180 30-179 days to 4 years 30-179 days to 4 years days 4 years or more days 4 years or more 1972 Nov. 9....................... 8 10 12 6 I6I/2 171/2 7 3 7 3 75 Nov. 16..................... 13 1973 July 19....................... 10 % 121/2 13i/2 18 1974 Dec. 12..................... 171/2 6 3 1975—Feb. 13..................... 71/2 10 12 13 16% Oct. 30...................... I 8 1 3 8 1 1976 Jan. 8......................... 3 821/2 8 21/2 In effect Feb. 29, 1976 71/2 10 12 13 I6I/2 3 3 8 21/2 8 1 6 8 2% 8 1 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks........... 10 22 Net demand deposits, other banks.................... 7 14 Time deposits.......................................................... 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 4 per cent. The requirement was 10 per cent originally, The requirement applied to balances above a specified base, but was not was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent applicable to banks having obligations of these types aggregating less effective June 21, 1973, and was reduced to the current 4 per cent effective than $10 million. For details, including percentages and maturity classifi­ May 22, 1975. Initially certain base amounts were exempted in the com­ cations, see “Announcements” in Bulletins for May, July, Sept., and putation of the requirements, but effective Mar. 14, 1974, the last of these Dec. 1973 and Sept. and Nov. 1974. reserve-free bases were eliminated. For details, see Regulations D and M. 6 The 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., p. 708, and Nov., at least 3 per cent, the minimum specified by law. For details, see Regu­ p. 769. lation D. 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

A8 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ MARCH 1976 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............... 41/2 Savings deposits......................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days........... 4 4% Less than $100,000: 90 days to 1 year. 5 30-89 days.......................... 5 5 5 5 2 1 - y 2 e a y r e s a o r r s . m .... o ... r .. e .. . . .. 5 5 5 % % 9 1 0 -2 d V a i y y s e t a o r s 1 . .. y .. e .. a .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 Vi 6 5Vi 5 6 Vi 5 6 Vi Single-maturity: 2Vi years or more............ 6 Vi 6 Vi 6 Vi 6 Vi Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000:4 2 1 - y 2 e a y r e s a o r r s . m .... o .. r .. e .. . . . . 5Vi 5 5 % % 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . .. . . (5) 7V4 m m m $100,000 or more: Governmental units.......... (6) (6) 7 Vi 73/4 30-59 days........... 5 Vi (3) $100,000 or more................. (3) (3) (3) (3) 9 6 0 0 - - 1 8 7 9 9 d d a a y y s. s .. . . . . . . . . . . . . . . . . . 5Vi 5Vi 6 5V 4 ( ( 3 3 ) ) 180 days to 1 year 6% (3) 1 year or more 6 y4 (3) 1 For exceptions with respect to certain foreign time deposits, see 5 per cent of its total time and savings deposits. Sales in excess of that Bulletin for Feb. 1968, p. 167. amount were subject to the 6 Vi per cent ceiling that applies to time de­ 2 Multiple-maturity time deposits include deposits that are automati­ posits maturing in 2Vi years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on that are payable after written notice of withdrawal. certificates maturing in 4 years or more with minimum denominations 3 Maximum rates on all single-maturity time deposits in denominations of $1,000. There is no limiation on the amount of these certificates that of $100,000 or more have been suspended. Rates that were effective banks may issue. Jan. 21, 1970, and the dates when they were suspended are: 6 Prior to Nov. 27, 1974, no distinction was made between the time deposits of governmental units and of other holders, insofar as Regula­ 30-59 days 6V4 per centl June 24, 1970 tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 60-89 days 6 Vi per cent f governmental units were permitted to hold savings deposits and could 90-179 days 6% per cent] receive interest rates on time deposits with denominations under $100,000 180 days to 1 year 7 per cent [■ May 16, 1973 irrespective of maturity, as high as the maximum rate permitted on such 1 year or more 7Vi per cent] deposits at any Federally insured depositary institution. Rates on multiple-maturity time deposits in denominations of $100,000 Note.—Maximum rates that may be paid by member banks are estab­ or more were suspended July 16, 1973, when the distinction between lished by the Board of Governors under provisions of Regulation Q; single- and multiple-maturing deposits was eliminated. however, a member bank may not pay a rate in excess of the maximum 4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not rate payable by State banks or trust companies on like deposits under apply to time deposits representing funds contributed to an Individual the laws of the State in which the member bank is located. Beginning Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 5 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates commercial banks, as established by the FDIC, have been the same as maturing in 4 years or more with minimum denominations of $1,000. those in effect for member banks. The amount of such certificates that a bank could issue was limited to For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4................... 40 50 1945—Feb. 5 July 50 50 July 5 1946—Jan. 20................... 75 75 1946—Jan. 21 1947—Jan. 100 100 1947—Feb. 1 1949—Mar. 29................... 75 75 1949—Mar. 30 1951—Jan. 50 50 1951—Jan. 17 1953—Feb. 19................... 75 75 1953—Feb. 20 1955—Jan. 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. 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

MARCH 1976 □ OPEN MARKET ACCOUNT A9 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills1 Others within 1 year2 1-5 years 5-10 years Over 10 years Period Exch. Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur­ sales tions pur­ sales shifts, or pur­ sales maturity pur­ sales maturity pur­ sales maturity chases chases redemp­ chases shifts chases shifts chases shifts tions 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 1,338 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 1975. 11,562 5,599 6,431 3,886 -3,553 2,863 4,275 1,510 -4,697 1,070 848 1975—Jan... 341 945 600 14 305 61 26 Feb.. 357 460 900 2,437 129 -2,836 113 249 74 150 Mar.. 760 156 487 1 ,579 -1,494 361 194 450 212 Apr.. 2,119 318 506 148 485 274 164 May. 903 354 407 50 -3,131 6,635 -3,801 298 June. 421 161 612 20 691 488 -529 180 109 July.. 1,505 800 Aug.. 312 282 400 2,002 -2,144 150 1,299 64 -1,444 47 '360 Sept.. 2,118 200 278 562 -278 137 124 Oct... 1,263 "766 400 48 -48 Nov.. 983 652 919 -265 267 -135 155 '300 244 ioo Dec.. 1,984 200 28 118 -28 78 71 1976—Jan.. 243 1,239 600 37 110 100 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Net Period Govt, chase change 3 securi­ agree­ Repur­ Gross Gross Gross ties Gross Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions chases chases sales chases tions right ments 197 0 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 197 1 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 101 22 181 8,866 197 2 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -9 -145 272 197 3 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 197 4 13,537 5,830 4,682 64.229 62,801 71.333 70.947 1,984 3,087 322 469 511 420 6,149 197 5 20,892 5,599 9,559 151,205 152,132 140,311 139,538 7,434 1,616 246 -392 163 -35 8,539 1975—Jan.. 746 945 600 9,237 10,367 9,260 8,748 844 14 -409 103 -136 387 Feb.. 673 460 900 7,167 6,634 11,267 10,305 -258 376 81 246 -12 39 309 Mar. 3,362 156 1,788 15,933 16,763 5,011 6,928 332 210 2 -347 -5 -323 -136 Apr.. 3,189 318 506 12,375 12,216 12,774 8,551 6,428 2 883 24 496 7,829 May. 953 354 407 2,996 3,044 19,489 21,952 -2,224 97 -567 55 -375 -3,207 June. 1,217 161 450 12,914 13,026 15,219 16,810 -873 6 -255 -62 -121 -1,317 July. 1,505 800 15,532 15,139 5,977 6,146 -2,866 2 -61 3 -2,926 Aug.. 2,574 282 2,389 14,234 13,730 8,146 6,881 663 353 40 90 -1 156 1,222 Sept.. 2,940 200 19,931 19,835 16,664 14,857 4,451 394 1 203 14 94 5,155 Oct.. 1,263 ‘766 400 15,886 16,113 13,699 13,838 186 284 -124 49 50 445 Nov. 1,693 652 919 14,442 15,207 14,342 17,275 -2,047 -169 -21 -300 -2,537 Dec.. 2,281 200 10,559 10,058 8,464 7,247 2,797 118 15 385 3,315 1976—Jan.. 563 1,239 600 11,407 11,503 18,135 14,919 2,037 187 98 2,567 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 directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, Note.—Sales, redemptions, and negative figures reduce System hold­ 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, 131; Mar. 1975, 1,560; ings; all other figures increase such holdings. Details may not add to Aug. 1975, 1,989. totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 FEDERAL RESERVE BANKS □ MARCH 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 1975 Feb. 25 Feb.18 Feb. 11 Feb. 4 Jan. 28 Feb. 29 Jan. 31 Feb. 28 Gold certificate account................................... 11,599 11,599 11,599 11,599 11,599 11,599 11,599 11,621 Special Drawing Rights certificate account. 500 500 500 500 500 500 500 400 Cash........................................................... 405 404 404 401 394 409 405 360 Loans: Member bank borrowings............... 688 58 62 44 138 51 66 77 Other..................................................... Acceptances: Bought outright.................................. 685 700 720 740 741 677 747 669 Held under repurchase agreements. 511 303 305 415 374 483 324 Federal agency obligations: Bought outright................................... 6,310 6,311 6,311 6,311 6,312 6,607 6,312 4,983 Held under repurchase agreements. 234 157 204 393 70 305 347 U.S. Govt, securities: Bought outright: Bills.............................. 36, 36,539 36,279 35,568 35,690 37,388 35,707 35,139 Certificates—Special. Other.. Notes.......................... 44,505 44,225 44,425 44,425 44,236 44,505 44,236 40,495 Bonds......................... 5,854 5,795 5,595 5,595 5,595 5,854 5,595 3,535 Total bought outright....................... i 87,239 86,559 i 86,299 1 85,588 i 85,521 1 87,747 i 85,538 i 79,169 Held under repurchase agreements. 5,771 2,330 2,815 6,118 1,243 4,433 1,917 Total U.S. Govt, securities. 93,010 88,889 86,299 88,403 91,639 88,990 89,971 81,086 Total loans and securities..................... 101,438 96,418 93,392 96,007 99,638 p 96,769 97,884 87,486 Cash items in process of collection. . . p 7,725 p 9,991 7,249 8,049 7,543 6,074 5,868 5,638 Bank premises......................................... 328 325 325 324 325 329 325 271 Operating equipment.............................. 16 15 13 13 13 16 13 Other assets: Denominated in foreign currencies. 289 278 294 301 331 296 333 2 All other............................................... 2,388 2,418 3,040 3,046 2,999 2,421 3,005 2,732 Total assets. p 124,688 p 121,948 116,816 120,240 123,342 p 118,413 119,932 108,510 Liabilities F.R. notes.............................................. 74,792 75,250 75,129 74,427 74,267 74,421 73,899 68,078 Deposits: Member bank reserves.................... p 29,385 p 26,003 26,097 28,751 29,503 p 24,555 27,306 28,644 U.S. Treasury—General account. 10,836 9,603 6,705 7,800 10,360 10,366 10,075 2,884 Foreign............................................... 261 252 257 225 209 412 294 409 Other: All other2...................................... 975 594 627 809 651 901 Total deposits. p 41,457 p 36,359 33,653 37,493 40,699 * 36,142 38,326 32,838 Deferred availability cash items............ 5,004 7,115 4,938 5,334 4,949 4,454 4,248 4,268 Other liabilities and accrued dividends. 1,165 1,072 1,051 1,052 1,121 1,067 1,098 1,098 Total liabilities.......................................... p 122,418 *119,796 114,771 118,306 121,036 p 116,084 117,571 106,282 Capital accounts Capital paid in................................................................... 939 937 936 934 934 940 935 898 Surplus................................................................................. 929 929 929 929 928 929 928 897 Other capital accounts..................................................... 402 286 180 71 444 460 498 433 Total liabilities and capital accounts............................ p 124,688 p 121,948 116,816 120,240 123,342 p 118,413 119,932 108,510 Contingent liability on acceptances purchased for foreign correspondents................................................. 130 Marketable U.S. Govt, securities held in custody for foreign and international accounts.......................... 44,739 44,203 43,990 43,672 44,145 43,650 43,124 38,849 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)........................ 80,847 80,963 80,975 81,138 81,328 80,820 81,228 74,245 Collateral held against notes outstanding: 11,596 11,596 11,596 11,596 11,596 11,597 11,596 3,457 302 302 302 302 302 302 302 93 Acceptances....................................................................... 425 71,710 71,710 71,710 71,710 71,710 71,710 71,710 72,162 Total collateral..................................................................... 83,608 83,608 83,608 83,608 83,608 83,609 83,608 76,137 1 See note 2 on p. A-2. 2 See note 6 on p. A-2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ FEDERAL RESERVE BANKS; BANK DEBITS All MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 Feb. 25 Feb. 18 Feb. 11 Feb. 4 Jan. 28 Feb. 29 Jan. 31 Feb. 28 Loans—Total........... 58 62 43 138 51 64 77 Within 15 days... 688 57 57 26 133 51 48 74 16-90 days............. 1 5 17 5 16 3 91 days to 1 year.. Acceptances—Total. 1,196 1,003 720 1,045 1,156 1,051 1,230 993 Within 15 days. .. 620 414 94 378 493 505 558 470 16-90 days............. 419 413 438 459 463 399 467 425 91 days to 1 year. 157 176 188 208 200 147 205 98 U.S. Govt, securities—Total. 93,010 88,889 86,299 88,403 91,639 88,990 89,971 81,086 Within 15 days1................. 10,176 5,592 8,243 11,069 8,761 4,675 7,552 4,649 16-90 days........................... 17,155 17,887 15,590 15,727 20,655 18,489 20,302 22,196 91 days to 1 year............... 22,853 22,884 21,213 20,354 21,159 23,000 21,053 21,059 1-5 years.............................. 30,855 30,677 30,572 30,572 30,383 30,855 30,383 20,733 5-10 years............................ 7,557 7,494 6,526 6,526 6,526 7,557 6,526 10,035 Over 10 years...................... 4,414 4,355 4,155 4,155 4,155 4,414 4,155 2,414 Federal agency obligations—Total. 6,544 6,468 6,311 6,515 6,705 6,677 6,617 5,330 Within 15 days1.............................. 326 221 35 204 412 162 324 514 16-90 days........................................ 135 160 189 224 183 146 .183 122 91 days to 1 year............................ 873 845 845 845 870 938 870 608 1-5 years........................................... 3,270 3.302 3.302 3.302 3,302 3,419 3,302 2,541 5-10 years........................................ 1,302 1.302 1.302 1.302 1,300 1,364 1,300 1,025 Over 10 years.................................. 638 638 638 638 638 648 638 520 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period Leading SMSA’s Total 232 Leading SMSA’s Total 232 Total SMSA’s 226 Total SMSA’s 226 233 (excl. other 233 (excl. other SMSA’s N.Y. 6 others2 N.Y.) SMSA’s SMSA’s N.Y. 6 others2 N.Y.) SMSA’s 1975—Jan................................... 21,853.9 10,157.8 4,868.4 11,696.0 6,827.7 127.1 321.8 125.4 83.3 67.3 Feb.................................. 22,950.1 10,918.0 4,992.8 12,032.1 7,039.3 133.1 343.2 126.2 85.5 69.6 Mar................................. 22,180.1 10,241.1 4,899.9 11,939.0 7,039.0 124.8 320.4 117.0 81.9 67.8 Apr.................................. 22,705.1 10,810.3 4,770.6 11,895.4 7,124.9 122.5 330.3 114.3 81.8 68.8 May................................ 22,738.6 10,826.1 4,852.6 11,912.5 7,059.9 128.9 333.9 120.1 82.8 68.2 June................................ 22,503.5 10,612.2 4,755.2 11,891.3 7,134.6 124.4 328.6 115.7 81.6 66.7 July................................. 22,827.9 10,709.5 4,841.1 12,118.3 7,277.2 126.2 331.0 115.7 81.6 68.2 Aug................................. 23,269.4 10,628.8 5,125.1 12,640.5 7,515.4 130.4 335.0 124.4 86.2 71.2 Sept................................. 23,181.9 10,585.0 5,153.0 12,596.9 7,443.8 128.8 330.7 123.8 85.1 70.0 Oct................................... 24,137.1 11,801.5 4,921.3 12,335.6 7,414.3 134.0 364.0 118.7 83.5 69.8 Nov.r.............................. 24,067.7 11,529.9 4,937.3 12,537.8 7,600.5 134.0 360.8 119.5 84.9 71.5 Dec.................................. 23,565.1 10,970.9 4,932.5 12,594.2 7,661.8 131.0 351.8 118.4 84.7 71.6 1976—Jan................................... 23,853.5 11,517.7 4,797.5 12,335.7 7,538.2 132.5 366.0 115.6 83.0 70.4 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

A12 MONEY STOCK □ MARCH 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi m2 M3 Mi Mi Mi M2 M3 Mi M& Composition of measures is described in the Note below. 1973—Dec................................. 270.5 571 .4 919.5 634.9 982.9 278.3 576.5 921.8 640.5 985.8 1974—Dec.................................. 283.1 612.4 981 .6 702.2 1,071.4 291.3 617.5 983.8 708.0 1,074.3 1975—Feb.................................. 281 .9 618.2 994.0 710.2 1,086.1 278.5 615.2 990.3 704.4 1,079.6 Mar................................. 284.1 623.0 1.003.7 712.8 1,093.5 281 .4 622.7 1.005.0 710.8 1,093.1 Apr.................................. 284.9 626.7 1.012.7 715.1 1,101.1 286.5 631 .1 1.020.0 716.9 1.105.8 May................................ 287.6 633.7 1,025.3 718.8 1,110.4 282.9 631.9 1.025.7 716.0 1.109.8 June................................ 291 .0 642.4 1.040.2 726.5 1,124.3 290.3 643.5 1,044.5 725.8 1.126.8 July................................. 291 .9 647.5 1.051.6 729.6 1,133.7 292.1 647.8 1.055.0 729.1 1.136.3 Aug................................. 293.2 650.6 1.060.6 729.3 1,139.3 290.0 647.2 1.057.1 728.4 1.138.3 Sept................................. 293.6 652.9 1,068.1 731.9 r\,147.2 291.7 649.5 1.062.8 732.2 1,145.5 Oct.................................. 293.4 655.7 1,075.6 736.6 1,156.5 292.4 653.0 1,070.3 736.8 1,154.0 Nov................................. 295.7 661 .6 1,086.0 743.4 1,167.7 297.6 659.7 1,080.1 742.5 1,162.9 Dec.................................. 295.0 663.3 rl ,091.8 746.2 1,174.7 303.4 668.4 1,093.6 751.8 ^1,177.0 1976—Jan................................... 295.3 669.0 1.102.3 748.2 1,181.5 301.2 674.1 1,105.8 752.6 1.184.3 Note.—Composition of the money stock measures is as follows: M3: M2 plus the average of the beginning and end-of-month deposits of mutual savings banks, savings and loan shares, and credit union shares Mi: Averages of daily figures for (1) demand deposits of commercial (nonbank thrift). banks other than domestic interbank and U.S. Govt., less cash items in Mi: Mo plus large negotiable CD’s. process of collection and F.R. float; (2) foreign demand balances at F.R. M6: M3 plus large negotiable CD’s. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For a description of the latest revisions in Mi, M2, M3, Mi and Mb, see commercial banks. “Revision of Money Stock Measures” on pp. 82-87 of the Feb. 1976 M2: Averages of daily figures for Mi plus savings deposits, time de­ Bulletin. posits open account, and time certificates of deposit other than negoti­ Latest monthly and weekly figures are available from the Board’s, H.6 able CD’s of $100,000 of large weekly reporting banks. release. Back data are 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 Non­ U.S. Period deposits bank deposits bank Govt. Cur­ De­ thrift Cur­ thrift de­ ren­ mand insti­ ren­ insti­ pos­ cy de­ tu­ cy Do­ tu­ its3 pos­ tions2 mes­ tions2 its CD’s1 Other Total Total Mem­ tic CD’s1 Other Total ber nonmem­ ber 1973—Dec................. 61 .5 209.0 63.5 300.9 364.4 348.0 62.7 215.7 156.5 56.3 64.0 298.2 362.2 345.3 6.3 I974—Dec................. 67.8 215.3 89.8 329.3 419.1 369.2 69.0 222.2 159.7 58.5 90.5 326.3 416.7 366.3 4.9 1975—Feb................. 68.7 213.2 92.1 336.2 428.3 375.9 67.8 210.6 151 .8 55.8 89.2 336.7 425.9 375.2 3.3 Mar................ 69.4 214.7 89.8 339.0 428.7 380.7 68.8 212.6 153.4 56.0 88.1 341.4 429.4 383.3 3.8 Apr................. 69.5 215.4 88.4 341.8 430.1 386.0 69.1 217.4 156.9 57.4 85.8 344.6 430.4 388.9 4.0 May............... 70.2 217.4 85.1 346.1 431 .2 391.6 70.0 212.9 153.4 56.6 84.1 349.1 433.2 393.8 4.1 June............... 71.0 220.0 84.1 351.4 435.5 397.8 71.2 219.1 157.2 58.9 82.3 353.2 435.5 401 .0 4.2 July................ 71.3 220.6 82.1 355.5 437.6 404.1 71.9 220.3 157.9 59.4 81.3 355.7 436.9 407.2 3.4 Aug................ 71.9 221 .3 78.8 357.4 436.2 410.0 72.1 217.8 155.8 59.0 81 .1 357.3 438.4 409.9 2.7 Sept................ 72.0 221 .6 79.1 359.2 438.3 415.2 71.9 219.9 157.0 59.7 82.7 357.7 440.5 413.3 3.9 Oct.................. 72.6 220.8 80.9 362.3 443.2 420.0 72.5 219.9 156.6 60.3 83.7 360.7 444.4 417.2 3.4 Nov................ 73.4 222.3 81 .8 365.9 447.6 424.4 73.9 223.6 158.9 61.5 82.9 362.1 444.9 420.4 3.5 Dec................. 73.7 221 .3 82.9 368.3 451.2 r428.5 75.0 228.4 162.1 62.9 83.5 365.0 448.4 425.2 4.2 1976_ Jan.................. 74.2 221.2 79.2 373.7 452.9 433.3 73.7 277.6 161.9 62.5 78.5 372.8 451.3 431.7 3.8 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above, mutual savings banks, for savings capital at savings and loan associations, and for credit union shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ BANK RESERVES; BANK CREDIT A13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non­ Total bor­ Re­ Avail­ Demand Demand rowed quired able 2 Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1973—Dec___ 34.98 33.69 34.68 32.78 442.8 279.7 158.1 5.0 447.5 278.5 164.0 5.0 449.4 454.0 1974—Dec. i... 36.63 35.90 36.37 34.42 486.9 322.9 160.6 3.4 491.8 321.7 166.6 3.5 495.3 500.1 1975—Jan .... 36.37 35.97 36.22 34.23 490.1 328.2 159.3 2.6 495.1 327.2 165.0 2.9 497.7 502.6 Feb.1... 35.49 35.34 35.30 33.50 490.9 329.1 159.9 1.9 487.0 326.5 158.0 2.4 497.4 493.5 Mar.. . . 34.99 34.88 34.79 32.94 493.4 329.2 161.7 2.5 491.6 328.9 159.8 2.8 499.9 498.1 Apr.. . . 35.08 34.97 34.92 33.00 494.1 329.7 161.7 2.7 495.4 329.1 163.2 3.1 500.8 502.2 May1. . 34.74 34.67 34.58 32.77 493.7 328.6 162.6 2.5 491.8 329.8 159.0 3.0 501.2 499.2 June... 35.07 34.85 34.87 32.90 499.5 330.5 165.8 3.2 497.5 330.2 164.2 3.1 506.5 504.5 July.... 34.98 34.68 34.79 32.89 498.3 330.8 164.9 2.6 497.2 330.2 164.5 2.5 505.1 504.0 Aug.. .. 34.88 34.67 34.69 32.77 496.3 328.4 165.1 2.8 494.8 330.5 162.3 2.0 503.3 501.8 Sept.... 34.99 34.59 34.80 32.77 498.4 329.8 165.6 3.0 499.1 332.2 164.0 2.9 505.5 506.1 Oct.1... 34.79 34.60 34.58 32.61 500.1 333.1 164.0 3.0 500.4 334.7 163.3 2.5 508.0 508.3 Nov... . 34.73 34.67 34.44 32.43 505.9 336.1 165.9 3.9 503.6 334.3 166.7 2.6 514.1 511.9 Dec.. .. 34.75 34.62 34.49 32.44 506.0 338.7 164.4 3.0 510.9 337.2 170.7 3.1 514.4 519.3 1976—Jan.1... 34.32 34.24 34.08 32.17 506.2 338.9 164.7 2.6 511.1 337.9 170.3 2.9 514.1 519.0 1 Averages of daily figures. Member bank reserve series reflect actual 3 Averages of daily figures. Deposits subject to reserve requirements reserve requirement percentages with no adjustment to eliminate the include total time and savings deposits and net demand deposits as defined effect of changes in Regulations D and M. There are breaks in series by Regulation D. Private demand deposits include all demand deposits because of changes in reserve requirements effective Dec. 12, 1974, Feb. except those due to the U.S. Govt., less cash items in process of collection 13, May 22, and Oct. 30, 1975, and Jan. 8, 1976. In addition, effective and demand balances due from domestic commercial banks. Jan. 1, 1976, statewide branching in New York was instituted. The sub­ 4 “Total member bank deposits” subject to reserve requirements, plus sequent merger of a number of banks raised required reserves because of Euro-dollar borrowings, loans sold to bank-related institutions, and higher reserve requirements on aggregate deposits at these banks. certain other nondeposit items. This series for deposits is referred to as 2 Reserves available to support private nonbank deposits are defined “the adjusted bank credit proxy.” as (1) required reserves for (a) private demand deposits, (b) total time Note.—Back data and estimates of the impact of required reserve and savings deposits, and (c) nondeposit sources subject to reserve re­ changes may be obtained from the Banking Section, Division of Research quirements, and (2) excess reserves. This series excludes required reserves and Statistics, Board of Governors of the Federal Reserve System, Wash­ or net interbank and U.S. Govt, demand deposits. ington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments 1 Total1 loans Plus Treas­ Other4 ments1 Total i loans Plus Treas­ Other4 sold 2 Total loans ury sold2 Total loans ury sold2 sold2 1971—Dec. 31___ 484.8 320.3 323.1 115.9 117.5 60.1 104.4 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31___ 556.4 377.8 380.4 129.7 131.4 61.9 116.7 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31___ 630.3 447.3 451.6 155.8 158.4 52.8 130.2 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Dec. 31 5 6. . 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—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. 21p.... 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. 24p___ 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. 29p___ 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. 26p.... 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 Dec. 31*... 717.2 494.7 499.1 177.7 180.3 77.9 144.6 734.4 505.1 509.5 181.1 183.7 84.2 145.1 1976—Jan. 28*\... 720.5 495.4 499.7 178.1 180.6 80.2 144.9 719.5 490.6 494.9 176.0 178.5 84.9 144.0 Feb. 25*.... 725.2 496.2 500.7 177.1 179.8 84.4 144.6 719.3 490.2 494.7 175.3 178.0 85.6 143.5 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright for banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re­ was also different. On the new basis, both “Total loans” and “Com­ classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by Note.—Total loans and investments: For monthly data, Jan. 1959— about $400 million as of June 30, 1972. June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, 4 Farmers Home Administration insured notes included in “Other Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current securities” rather than in loans beginning June 30, 1971, when such notes seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and totaled about $700 million. the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: 5 Data beginning June 30, 1974, include one large mutual savings For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. bank that merged with a nonmember commercial bank. As of that date A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for there were increases of about $500 million in loans, $100 million in “Other last Wednesday of month except for June 30 and Dec. 31; data are partly 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

A14 COMMERCIAL BANKS □ MARCH 1976 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 series 6 All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 31 7.. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31... 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 19 70-Dec. 318.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31... 598,808 414,696 67,028117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31... 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Dec. 31... 744,107 549,183 54,451140,473 128,042 919,552 747,903 43,48311,496 4,807 267,506 420,611 58,369 63,650 14,465 1975—Feb. 26... 725,480 531,390 54,550139,540103,880 879,080 702,500 29,93010,440 2,630 234,610 424,890 64,290 64,540 14,499 Mar. 26... 731,690 531,440 59,330140,920105,850 889,370 712,520 30,41011,680 3,950 236,900 429,580 63,370 65,220 14,525 Apr. 30... 731,100 526,120 63,280141,700114,140 899,110 723,060 33,14011,880 7,910 242,580 427,550 61,340 65,100 14,537 May 28... 733,690 527,030 65,000141,660114,400 901,280 725,590 32,51011,200 2,950 246,410 432,520 61,700 65,080 14,558 June 30... 747,551 535,493 68,191143,868128,716 930,719 754,324 42,58211,209 3,117 264,027 433,389 62,420 66,557 14,573 July 30*.. 738,850 525,640 69,620143,590106,780 900,210 724,350 33,16010,830 2,230 243,470 434,660 61,800 66,150 14,583 Aug. 27*.. 740,590 524,700 72,060143,830104,030 898,940 723,090 31,51010,570 2,850 242,290 435,870 59,770 66,580 14,595 Sept. 24*.. 742,300 522,580 75,440144,280105,160 903,440 724,490 31,28010,990 3,220 240,080 438,920 60,790 66,900 14,612 Oct. 29*.. 745,150 524,260 76,050144,840109,140 911,930 733,730 31,83011,210 2,700 247,030 440,960 60,310 67,440 14,629 Nov. 26*.. 754,780 529,890 79,550145,340121,370 934,450 749,140 34,47011,160 3,600 256,970 442,940 66,360 67,850 14,625 Dec. 31*.. 771,380 542,090 84,220145,070128,270 958,410 781,770 41,66011,830 3,170 278,280 446,830 58,100 68,510 14,630 1976—Jan. 28*.. 753,420 524,510 84,920143,990111,050 921,760 738,930 32,00011,160 3,880 245,230 446,660 66,780 68,600 14,612 Feb. 28*.. 754,460 525,380 85,580143,500109,420 922,910 736,760 31,45010,990 4,110 242,250 447,960 68,000 68,880 14,612 Members of F.R. System: 1941—Dec. 31 ... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31.. . 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1 ,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 318.. 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 1971—Dec. 31... 405,087 277,717 47,633 79,738 86,189 511 ,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—Dec. 31... 528,124 391,032 41,494 95,598 100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974—Dec. 31... 568,532 429,537 38,921 100,073 106,995 715,615 575,563 41,06210,052 3,183 204,203 317,064 52,850 48,240 5,780 1975—Feb. 26... 549,144 412,076 38,628 98,440 88,430 678,970 535,250 28,157 8,991 1,989 178,596 317,517 58,868 48,741 5,785 Mar. 26... 552,957 411,446 42,544 98,967 89,685 685,906 542,076 28,56410,231 2,794 180,214 320,273 58,030 49,219 5,785 Apr. 30... 550,756 406,676 45,142 98,938 96,694 692,147 549,824 31,10210,433 6,212 184,693 317,384 55,738 49,267 5,789 May 28... 551,264 405,803 46,918 98,543 96,455 691,485 549,996 30,191 9,751 2,178 187,439 320,437 56,140 49,188 5,790 June 30... 562,667 412,939 49,610100,118 107,152 716,364 573,382 39,847 9,576 2,166 201,197 320,596 56,334 50,257 5,794 July 30... 553,545 403,742 50,050 99,753 89,898 688,756 547,222 30,980 9,198 1 ,541 184,595 320,908 56,094 49,951 5,796 Aug. 27... 554,007 402,281 51,899 99,827 87,208 686,266 545,021 29,335 8,932 2,099 183,283 321,372 54,175 50,281 5,792 Sept. 24... 555,096 400,695 54,355100,046 88,004 689,717 546,360 29,150 9,360 2,343 181,340 324,167 54,929 50,543 5,792 Oct. 29... 556,383 401,492 54,546100,345 91,397 695,312 552,649 29,568 9,578 1,952 186,851 324,700 54,250 50,963 5,796 Nov. 26... 564,055 405,825 57,477100,753 102,106 714,149 564,856 32,064 9,527 2,708 194,502 326,055 60,162 51,199 5,792 Dec. 31*.. 577,678 416,039 61,238100,401 107,211 733,267 591,358 38,59510,197 2,226 211,418 328,922 52,756 51,748 5,789 1976—Jan. 28... 563,471 402,067 61,710 99,694 93,794 705,136 556,298 29,712 9,529 2,908 185,783 328,366 61,022 52,067 5,767 Feb. 28*.. 563,183 401,937 61,875 99,371 91,736 704,398 552,940 29,145 9,357 2,977 183,463 327,998 62,052 52,236 5,767 Call date series 1 Ins T u o re ta d l : banks: 1i 1941 _Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 318.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961 129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—Dec. 31... 734,516 541,111 54,132139,272125,375 906,325 741,665 42,58710,693 4,799 265,444 418,142 55,988 63,039 14,216 1975—June 30... 736,164 526,272 67,833142,060125,181 914,781 746,348 41,24410,252 3,106 261,903 416,962 59,310 65,986 14,320 Sept. 30... 740,882 521,673 73,382140,627117,774 911,981 741,758 37,652 9,876 3,606 252,945 425,382 58,325 67,579 14,357 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...i 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—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 Sept. 30... 428,507 307,230 40,872 76,929 72,216 534,415 427,421 20,250 6,795 1,963 146,382 245,783 42,073 38,346 4,738 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ COMMERCIAL BANKS A15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets3 bilities row­ ac­ of insurance Total Loans U.S. and Total3 Demand ings counts banks l Treas­ Other capital De­ Time ury 2 ac­ mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941—Dec. 31.... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,'739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31.... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31.... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 318... 94,760 66,963 11,196 16,600 25,472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1972—Dec. 31.... 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Dec. 31.... 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—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—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 1975—Sept. 30. . . 135,003 99,854 12,234 21,240 28,842 176,267 139,276 16,125 2,427 490 46,416 67,958 13,211 13,009 1,057 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 I960—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—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 1975—Sept. 30. . . 177,371 114,589 20,275 42,457 16,717201,299 175,060 1 ,277 655 1,153 60,147 111,641 3,041 16,224 8,562 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 329 i,:>91 253 13 329 852 1947—Dec. 3H... 2,009 474 1,280 255 576 2,643 2,251 x ii 185 18 1,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 318... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—Dec. 31.... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31.... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31... . 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—Dec. 31.... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 8 2,062 2,857 2,382 611 249 1975—June 30. . . 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 11 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 i157 5,:504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31.... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 318... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31.... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16,562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—Dec. 31.... 175,690 119,761 15,530 40,400 21,047204,051 172,454 2,422 1,445 1 ,624 63,302 103,661 5,520 15,410 8,685 1975—June 30. . . 184,963 122,633 18,581 43,750 21,563214,434 181,021 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 (including “Total loans” include Federal funds sold, and beginning with June 1967 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. 1960. Those banks change, approximately $300 million was transferred to “Other securities” are not included in insured commercial banks. for the period ending June 30, 1971, for all commercial banks. Effective June 30, 1969, commercial banks and member banks exclude See also table (and nqtes) 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 in 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

A16 COMMERCIAL BANKS □ MARCH 1976 ASSETS BY CLASS OF BANK, JUNE 30, 1975 (Assets and liabilities are shown in millions of dollars.) Member banks1 All Insured Large banks Account commercialcommercial Nonbanks banks member Total New City of Other All other banks1 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 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 5165 3*710 8^906 14,556 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 14 406 406 400 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 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 27 496,990 488,888 384,247 75,339 22,512 142,424 143,973 112,742 131,445 131,246 94,442 7,951 1,332 35,526 49,633 37,003 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 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 1,227 762 761 706 136 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 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 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 31,751 101,816 101,512 72,806 4,942 1,540 25,865 40 ,'458 29,010 79,246 79,033 56,275 3,062 804 20,229 32,180 22,971 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 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 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 26,917 26,239 23,592 8,889 1,122 9,756 3,825 3,325 931,057 914,781 716,623 139,333 36,268 264,990 276,032 214,434 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 Personal valuation reserves. Loans, p. 24. Back data in lesser detail were shown in previous Bulletins. Beginning 3 Demand deposits adjusted are demand deposits other than domestic with the fall Call Report, data for future spring and fall Call Reports will commercial interbank and U.S, Govt., less cash items reported as in be available from the Data Production Section of the Division of Data process of collection. Processing. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1975 (Assets and liabilities are shown in millions of dollars.) W[ember bant:s1 All Insured Large bank:s Non­ Account commercial commercial member banks banks Total All other banks1 New City of Other York Chicago large City Demand deposits.................................................................. 309,726 306,253 243,210 57,475 9,911 85,372 90,453 66,516 Mutual savings banks..................................................... 1,279 1,151 1,057 483 1 210 362 223 Other individuals, partnerships, and corporations. . 232,079 231,121 177,344 29,687 7,668 65,847 74,142 54,735 U.S. Government............................................................. 3,117 3,106 2,166 118 42 725 1,280 951 States and political subdivisions................................... 18,217 18,079 13,074 758 186 3,883 8,247 5,143 Foreign governments, central banks, etc..................... 1,555 1,310 1,280 1,088 18 167 6 275 Commercial banks in United States............................ 34,345 34,019 32,823 16,986 1,593 10,482 3,762 1,522 Banks in foreign countries............................................. 6,957 6,074 5,967 4,662 152 1,058 95 990 Certified and officers’ checks, etc.................................. 12,176 11,393 9,499 3,691 250 2,999 2,558 2,677 Time and savings deposits.................................................. 444,936 440,096 330,431 46,693 16,362 119,708 147,669 114,505 Savings deposits............................................................... 151,744 151,463 109,037 6,995 2,385 38,455 61,202 42,708 Accumulated for personal loan payments2................ 338 335 259 74 186 79 Mutual savings banks..................................................... 648 627 611 287 17 265 42 37 Other individuals, partnerships, and corporations. . 219,489 216,619 163,751 25,801 10,371 59,106 68,473 55,738 U.S. Government............................................................. 492 492 360 10 1 184 165 132 States and political subdivisions................................... 48,219 48,052 34,739 1,421 1,324 15,062 16,932 13,480 Foreign governments, central banks, etc.................... 13,445 12,882 12,710 7,956 1,374 3,337 43 735 Commercial banks in United States............................ 8,449 8,334 7,716 3,205 842 3,048 621 733 Banks in foreign countries............................................. 2,111 1,291 1,248 1,018 48 178 5 863 Total deposits....................................................................... 754,662 746,348 573,641 104,167 26,272 205,080 238,122 181,021 Federal funds purchased and securities sold under agreements to repurchase............................................... 56,529 54,835 52,184 13,367 5,845 25,865 7,106 4,345 Other liabilities for borrowed money.............................. 5,891 4,475 4,150 1,362 26 2,370 392 1,741 Mortgage indebtedness....................................................... 763 761 550 64 4 313 169 213 10,060 9,814 9,583 5,375 430 3,447 332 477 Other liabilities..................................................................... 27,627 23,645 18,960 3,535 929 7,789 6,706 8,667 855,533 839,879 659,069 127,870 33,507 244,864 252,827 196,464 Minority interest in consolidated subsidiaries............... 5 4 1 1 4 Total reserves on loans/securities..................................... 8,963 8,912 7,297 1,685 525 2,761 2,325 1,666 Reserves for bad debts (IRS)........................................ 8,659 8,614 7,110 1,685 525 2,682 2,218 1,549 Other reserves on loans.................................................. 121 119 69 1 17 50 53 Reserves on securities..................................................... 182 179 119 61 57 64 Total capital accounts......................................................... 66,557 65,986 50,257 9,777 2,236 17,365 20,878 16,300 Capital notes and debentures........................................ 4,347 4,287 3,467 782 81 1,656 948 880 Equity capital. ................................................................. 62,210 61,699 46,790 8,995 2,155 15,710 19,930 15,421 Preferred stock............................................................. 50 42 24 10 13 27 Common stock............................................................. 15,176 15,077 11,187 2,163 568 3,614 4,842 3,989 25,968 25,816 19,500 3,667 1,143 6,976 7,713 6,468 20,053 19,859 15,441 3,166 399 4.845 7,031 4,613 Other capital reserves................................................ 963 905 638 44 264 330 324 Total liabilities, reserves, minority interest, capital 931,057 914,781 716,623 139,333 36,268 264,990 276,032 214,434 Demand deposits adjusted3............................................... 222,842 219,813 160,611 24,373 6,136 53,646 76,456 62,231 Average total deposits (past 15 days).............................. 734,017 726,164 555,860 96,313 25,508 199,612 234,427 178,157 Average total loans (past 15 days)................................... 506,945 497,466 385,936 74,863 22,484 143,273 145,316 121,009 Selected ratios: Percentage of total assets Cash and balances with other banks........................... 13.8 13.7 15.0 21.3 12.2 14.7 12.4 10.1 22.8 22.9 20.9 12.1 16.2 18.9 27.9 29.1 Total securities held........................................................ Trading account securities ................................ .7 .7 .9 1.8 1.5 1.1 . 1 (j § Treasury ................................................... .3 .3 .4 1.0 .9 .4 Qtnfpc onH nnlitiPJll VIQIATIQ . _ . .2 .2 .3 . 5 .3 .4 All r\fh(>r traHina fippnnrit QpmritiM . 1 .1 .2 .2 .3 .3 Bank investment portfolios........................................ 22.1 22.3 20.0 10.3 14.7 17.8 27.8 29.0 7.0 7.1 6.5 4.3 5.1 6.0 8.3 8.6 States and political subdivisions........................... 10.7 10.8 10.0 4.5 7.5 9.1 14.0 12.9 All other portfolio securities................................. 4.4 4.3 3.5 1.5 2.1 2.6 5.5 7.5 Other loans and Federal funds sold............................ 57.6 57.5 57.7 55.3 65.6 59.3 56.2 57.2 5.8 5.8 6.5 11.3 6.1 7.1 3.5 3.7 80.3 80.5 78.6 67.4 81.8 78.2 84.1 86.3 Reserves for loans and securities.................................. 1.0 1.0 1.0 1.2 1.4 1.0 .8 .8 6.7 6.7 6.5 6.5 5.9 5.9 7.2 7.2 7.1 7.2 7.0 7.0 6.2 6.6 7.6 7.6 14,573 14,320 5,794 12 9 155 5,618 8,779 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 WEEKLY REPORTING BANKS o MARCH 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA (In millions of dollars) Federal funds sold, etc.1 Other To brokers For pur chasing 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 US. Other others Total cial cul­ Real cial Treas­ se­ and tural Pers. estate banks ury curi­ indus­ U.S. U.S and se­ ties trial Treas­ Other Treas­ Other sales Other curi­ ury secs. ury secs. finance ties secs. secs. COS., etc. Large banks— Total 1975 Feb. 5................. 398,338 21,144 17,055 1,929 1,248 912292,901 127,306 3,508 1,467 3,307 82 2,440 9,972 20,922 60,331 12................. 395,724 20,682 16,802 1,802 1,000 1,078290,250 126,890 3,456 585 2,787 83 2,438 9,644 20,784 60,141 19.................. 398,700 20,444 16,542 1,729 1,076 1,097292,141 126,890 3,449 1,287 3,461 82 2,463 10,091 20,716 60,216 26.................. 392,802 17,498 13,987 1,547 1,065 899289,737 126,747 3,442 800 2,804 81 2,425 9,590 20,460 60,197 1976 Jan. 7................. 402,786 20,265 16,284 2,687 677 617281,563 119,281 3,688 1,649 4,311 73 2,328 8,262 18,342 59,862 14.................. 401,058 20,597 17,445 1,700 781 671279,147 118,415 3,631 977 4,243 78 2,259 8,294 18,082 59,842 21.................. 394,724 18,035 14,878 1,650 567 940277,309 117,826 3,631 813 3,885 79 2,272 8,209 17,995 59,836 28.................. 393,187 18,341 15,558 1,616 493 674275,077 117,000 3,640 551 3,309 75 2,265 8,135 17,860 59,749 Feb. 4.................. 394,770 18,435 15,655 1,623 550 607276,283 117,222 3,639 877 3,857 78 2,292 8,372 17,828 59,667 11.................. 394,924 19,596 16,826 1,521 588 661 275,413 116,930 3,625 834 4,084 72 2,304 8,261 17,850 59,643 18................. 395,889 18,816 16,448 1,233 561 574276,612 116,738 3,631 1,137 4,215 84 2,301 8,548 17,767 59,748 2 5 391,503 17,366 15,017 1,182 450 717274,898 116,201 3,627 876 4,134 77 2,302 8,249 17,780 59,722 New York City 1975 Feb. 5................. 93,753 1,125 914 126 85 77,714 40,511 144 946 2,143 18 487 3,530 8,429 8,883 12................. 93,876 1,700 1,405 130 26 139 76,647 40,347 133 517 1,899 17 488 3,363 8,383 8,899 19................. 96,432 2,514 2,131 125 258 78,172 40,429 141 1,130 2,405 20 492 3,530 8,332 8,885 2 6 93,593 1,361 1,126 117 113 76,623 40,353 139 725 1,878 18 476 3,270 8,238 8,873 1976 Jan. 7.................. 92,527 838 617 133 73,326 37,538 107 1,439 2,599 16 453 2,790 6,987 9,533 14................. 91,908 1,637 1,405 125 92 71,745 36,867 103 898 2,519 18 394 2,861 6,961 9,507 21................. 90,501 1,839 1,365 74 400 71,023 36,573 101 755 2,489 19 389 2,734 6,996 9,498 28................. 89,993 2,108 1,777 157 174 69,773 36,223 100 490 2,026 19 390 2,702 6,946 9,456 Feb. 4................. 90,426 1,355 1,082 140 133 70,806 36,250 93 783 2,601 19 393 2,854 6,966 9,441 11................. 89,618 1,285 1,117 40 128 70,290 35,948 91 731 2,787 18 398 2,735 6,943 9,461 18................. 91,587 1,762 1,532 99 131 71,333 35,791 92 1,044 3,016 21 396 2,989 6,929 9,493 25................. 89,672 1,172 848 65 259 70,421 35,486 90 831 2,908 19 396 2,917 6,965 9,480 Outside New York City 1975 Feb. 5. 304,585 20,019 16,141 1,803 1,248 827215,187 86,795 3,364 521 1,164 64 1,953 6,442 12,493 51,448 12. 301,848 18,982 15,397 1,672 974 939213,603 86,543 3,323 68 888 66 1,950 6,281 12,401 51,242 19. 302,268 17,930 14,411 1,604 1,076 839213,969 86,461 3,308 157 1,056 62 1,971 6,561 12,384 51,331 26. 299,209 16,137 12,861 1,430 1,060 786213,114 86,394 3,303 75 926 63 1,949 6,320 12,222 51,324 1976 Jan. 7. 310.259 19,427 15,667 2,599 677 484208,237 81,743 3,581 210 1,712 57 1,875 5,472 11,355 50,329 14. 309,150 18,960 16,040 1.575 766 579207,402 81,548 3,528 79 1,724 60 1,865 5,433 11,121 50,335 21. 304,223 16,196 13,513 1.576 567 540206,286 81,253 3,530 58 1,396 60 1,883 5,475 10,999 50,338 28. 303,194 16,233 13,781 1,459 493 500205,304 80,777 3,540 61 1,283 56 1,875 5,433 10,914 50,293 Feb. 4..................... 304,344 17,080 14,573 1,483 550 474205.477 80,972 3,546 94 1,256 59 1,899 5,518 10,862 50,226 11 ..................... 305,306 18,311 15,709 1,481 588 533205,123 80,982 3,534 103 1,297 54 1,906 5,526 10,907 50,182 18..................... 304,302 17,054 14,916 1,134 561 443205,279 80,947 3,539 93 1,199 63 1,905 5,559 10,838 50,255 25..................... 301,831 16,194 14,169 1,117 450 458204.477 80,715 3,537 45 1,226 58 1,906 5,332 10,815 50,242 A Effective with changes in New York State branch banking laws, reported data for “Outside New York City” (total assets, by about $4.0 beginning Jan. 1,1976, three large New York City banks are now reporting billion). combined totals for previously affiliated banks that have been converted Historical data (from Jan. 1972) on a basis comparable with 1976 data to branches. are available from the Public Information Department of the Federal The principal effects of these changes were to increase the reported data Reserve Bank of New York on request. for New York City (total assets, by about $5.5 billion) and to decrease the For other notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 a WEEKLY REPORTING BANKS A19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A—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 Do­ For­ ment mes­ eign Within 1 to After tic i yr. 5 yrs. 5 yrs. Tax Certif. war­ All of rants 3 other partici­ All pation4 other5 Large banks- Total 1975 2,871 5,455 34,875 1,405 18,960 22,864 3,395 3,787 12,383 3,299 61,429 6,336 40,096 2,480 12,517 ...................Feb. 5 3,103 5,478 34,788 1,436 18,637 23,365 4,147 3,736 12,223 3,259 61,427 6,302 40,155 2,479 12,491 .12 2,829 5,498 34,686 1,471 19,002 24,539 4,067 3,458 13,311 3,703 61,576 6,300 40,221 2,513 12,542 19 2,856 5,509 34,596 1,418 18,812 24,207 4,101 3,437 13,097 3,572 61,360 6,200 40,268 2,562 12,330 .26 1976 2,168 5,625 35,483 1,650 18,841 40,618 13,426 6,755 17,678 2,759 60,340 6,550 39,709 2,317 11,764 7 2,207 5,487 35,483 1,616 18,533 41,362 14,159 6,903 17,524 2,776 59,952 6,364 39,621 2,278 11,689 .14 2,064 5,404 35,405 1,741 18,149 39,963 13,249 6,748 17,314 2,652 59,417 6,194 39,407 2,251 11,565 .21 2,051 5,219 35,406 1,707 18,110 40,456 13,029 6,737 17,509 3,181 59,313 6,103 39,418 2,241 11,551 28 2,155 5,113 35,364 1,663 18,156 40,682 12,629 6,826 18,138 3,089 59,370 6,231 39,230 2,222 11,687 ...................Feb. 4 1,925 5,124 35,261 1,717 17,783 40,534 12,677 6,756 18,035 3,066 59,381 6,214 39,323 2,168 11,676 11 1,921 5,244 35,191 1,770 18,317 41,107 13,062 6,013 19,119 2,913 59,354 6,053 39,387 2,184 11,730 .18 2,005 5,127 35,234 1,768 17,796 40,083 12,440 6,006 18,826 2,811 59,156 5,955 39,502 2,168 11,531 .25 New York City 1975 1,501 2,654 3,652 692 4,124 4,659 707 434 2,478 1,040 10,255 1,864 5,809 225 2,357 ...................Feb. 5 1,504 2,706 3,637 702 4,052 5,191 1,277 449 2,461 1,004 10,338 1,894 5,837 215 2,392 .12 1,480 2,684 3,641 708 4,295 5,530 1,089 488 2,764 1,189 10,216 1,850 5,776 196 2,394 .19 1,438 2,762 3,619 691 4,143 5,443 1,069 483 2,725 1,166 10,166 1,736 5,808 199 2,423 .26 1976 786 2,405 3,806 635 4,232 8,784 2,701 1,073 4,222 788 9,579 1,371 6,191 204 1,813 7 745 2,402 3,828 589 4,053 9,054 2,984 1,119 4,164 787 9,472 1,306 6,173 209 1,784 .14 692 2,426 3,805 637 3,909 8,304 2,425 1,011 4,109 759 9,335 1,229 6,118 206 1,782 .21 691 2,250 3,798 628 4,054 8,830 2,586 1,029 4,135 1,080 9,282 1,179 6,157 205 1,741 .28 664 2,228 3,808 606 4,100 9,016 2,635 1,070 4,401 910 9,249 1,310 6,029 200 1,710 ...................Feb. 4 605 2,233 3,780 644 3,916 8,799 2,372 1,075 4,478 874 9,244 1,272 6.038 195 1,739 .11 611 2,372 3,758 623 4,198 9,294 2,885 975 4,714 720 9,198 1,178 6; 124 194 1,702 .18 652 2,285 3,759 612 4,021 8,871 2,865 1,006 4,438 562 9,208 1,163 6,192 193 1,660 .25 Outside New York City 1975 1,370 2,801 31,223 713 14,836 18,205 2,688 3,353 9,905 2,259 51,174 4,472 34,287 2,255 10,160 ...................Feb. 5 1,599 2,772 31,151 734 14,585 18,174 2,870 3,287 9,762 2,255 51,089 4,408 34,318 2,264 10,099 .12 1,349 2,814 31,045 763 14,707 19,009 2,978 2,970 10,547 2,514 51,360 4,450 34,445 2,317 10,148 .19 1,418 2,747 30,977 727 14,669 18,764 3,032 2,954 10,372 2,406 51,194 4,464 34,460 2,363 9,907 .26 1976 1,382 3,220 31,677 1,015 14,609 31,834 10,725 5,682 13,456 1,971 50,761 5,179 33,518 2,113 9,951 7 1,462 3,085 31,655 1,027 14,480 32,308 11,175 5,784 13,360 1,989 50,480 5,058 33,448 2,069 9,905 .14 1,372 2,978 31,600 1,104 14,240 31,659 10,824 5,737 13,205 1,893 50,082 4,965 33,289 2,045 9,783 .21 1,360 2,969 31,608 1,079 14,056 31,626 10,443 5,708 13,374 2,101 50,031 4,924 33,261 2,036 9,810 .28 1,491 2,885 31,556 1,057 14,056 31,666 9,994 5,756 13,737 2,179 50,121 4,921 33,201 2,022 9,977 ...................Feb. 4 1,320 2,891 31,481 1,073 13,867 31,735 10,305 5,681 13,557 2,192 50,137 4,942 33,285 1,973 9,937 .11 1,310 2,872 31,433 1,147 14,119 31,813 10,177 5,038 14,405 2,193 50,156 4,875 33,263 1,990 10,028 .18 1,353 2,842 31,475 1,156 13,775 31,212 9,575 5,000 14,388 2,249 49,948 4,792 33,310 1,975 9,871 .25 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 WEEKLY REPORTING BANKS □ MARCH 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A-Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ Domestic Wednesday process with and do­ sidiar­ assets total States interbank of F.R. coin mestic ies not liabil- and collec­ Banks banks consol­ tites polit­ For­ tion idated Total ical U.S. eign 6 IPC sub­ Govt. Com­ Mutual govts., divi­ mer­ sav­ etc.2 sions cial ings Large banks— Total 1975 Feb. 5.................................... 32,373 25,684 4,263 11,252 1,681 33,615 507,206 160,076 113,550 6,458 2,783 22,886 760 1,270 12. . . 31,784 25,502 4,687 11,551 1,684 33,370504,302 154,431 112,952 6,005 1,464 21,157 678 1,291 19. . . 36,530 21,458 4,816 11,561 1,705 33,720508,490160,855 115,612 6,561 1,582 23,299 641 1,116 ?6 29,951 24,044 4,832 10,265 1,696 33,941 497,531 153,412 112,837 6,105 1,456 20,333 625 1,222 1976 Jan. 1... 35,694 23,077 5,539 14,301 1,940 39,625 522,962 173,691 124,436 6,494 2,867 26,592 863 1,410 14. . . 35,063 21,175 5,553 13,188 1,922 40,433 518,392 168,445 124,486 6,087 1,433 23,575 770 1,053 21 . . . 34,174 22,202 5,363 12,446 1,966 38,931 509,806 164,975 119,615 6,137 2,879 23,040 742 1,128 28. . . 31,546 22,884 5,325 13,235 1,919 39,683507,779 159,545 116,670 6,061 1,995 22,262 686 986 Feb. 4 34,943 22,411 4,633 12,678 1,963 40,956512,354 165,266 118,047 6,366 3,464 23,821 816 979 11 32,910 19,940 4,945 12,365 1,935 41,650508,669 160,269 117,290 6,056 1,777 22,523 708 1,032 18 43,914 20,000 5,299 13,586 1,935 41,159 521,782 174,892 122,931 6,531 3,418 27,013 728 935 25 32,191 22,513 5,262 11,009 1,929 41,124505,531 157,115 115,133 6,220 1,898 21,251 644 991 New York City 1975 Feb. 5.................................... 11,774 9,133 640 4,687 766 12,152 132,905 47,687 27,068 655 654 10,802 454 998 12 11,808 7,996 674 5,301 768 11,885 132,308 45,153 26,572 540 139 9,873 386 1,055 19 12,335 6,614 693 5,042 773 12,324 134,213 47,399 27,244 537 152 10,820 337 897 26 11,437 6,691 677 4,513 773 12,195 129,879 46,486 27,899 617 295 9,826 363 1,022 1976 Jan. 7 12,007 8,367 867 5,838 849 13,070 133,525 50,246 28,531 510 553 13,109 507 1,149 14 12,388 7,028 858 5,687 846 13,624 132,339 48,951 29,432 562 153 11,423 444 838 21 12,516 6,271 829 5,272 846 12,277 128,512 48,519 28,104 619 545 11,323 410 905 28. . , 12,191 6,583 811 5,867 844 12,629 128,918 47,731 28,244 584 335 11,383 370 773 Feb. 4 11,782 6,217 745 5,391 843 13,301 128,705 47,875 27,898 640 680 10,605 452 785 11 11,815 5,553 766 5,403 847 14,253 128,255 46,118 27,061 632 311 10,812 367 825 18 15,992 5,599 833 5,146 847 13,893 133,897 52,636 28,639 645 647 13,123 383 737 25 11,410 7,077 808 4,467 847 13,801 128,082 45,720 27,241 618 325 9,826 331 799 Outside New York City 1975 Feb. 5.................................... 20,599 16,551 3,623 6,565 915 21,463 374,301 112,389 86,482 5,803 2,129 12,084 306 272 12 19,976 17,506 4,013 6,250 916 21,485 371,994 109,278 86,380 5,465 1,325 11,284 292 236 19. , 24,195 14,844 4,123 6,519 932 21,396 374,277 113,456 88,368 6,024 1,430 12,479 304 219 26 18,514 17,353 4,155 5,752 923 21,746 367,652 106,926 84,938 5,488 1,161 10,507 262 200 1976 Jan. 7 23,687 14,710 4,672 8,463 1,091 2^,555 389,437 123,445 95,905 5,984• 2,314 13,483 356 261 14, , 22,675 14,147 4,695 7,501 1,076i 26,809 386,053 119,494 95,054■ 5,525 1,280 12,152 326 215 21 21,658 15,931 4,534 7,174 1,120• 26,654 381,294 116,456 91,511 5,518i 2,334 11,717 332 223 28. . 19,355 16,301 4,514 7,368 1,075 27,054 378,861 111,814 88,426 5,477 1,660 10,879 316 213 Feb. 4 23,161 16,194 3,888 7,287 1,1201 27,655 383,649 117,391 90,149 5,726i 2,784 13,216 364 194 11 21,095 14,387 4,179 6,962 1,088! 27,397 380,414 114,151 90,229 5,424 1,466 11,711 341 207 18, , 27,922 14,401 4,466 8,440i 1,088! 27,266 387,885 122,256 94,292 5,886; 2,771 13,890 345 198 25 , , 20,781 15,436i 4,454 6,542 1,082: 27,323 377,449 111,395 87,892 5,602, 1,573 11,425 313 192 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ WEEKLY REPORTING BANKS A21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits (cont.) Borrowings Reserves from— for— Demand (cont.) Time and savings Fed­ eral Other Total IPC funds liabili­ Secur­ capital For­ Certi­ States pur­ ties, Loans ities ac­ Wednesday eign fied and Do- chased, etc. 8 counts com­ and polit­ mes- For­ etc. 7 F.R. mer­ offi­ ical tic eign Banks Other cial cers’ Sav­ Other sub- inter­ govts.2 banks checks. ings divi- bank Large banks— Total 1975 4,927 7,442226,426 59,355 120,457 25,115 7,819 11,597 52,983 3,798 23,795 5.574 34,485 ...............Feb. 5 5,119 5,765226,771 59,595 120,715 25,460 7,245 11,706 55,541 34 3,766 23,589 5.575 34,535 ..........................12 5,018 7,026225,149 59,852 119,233 25,342 7,038 11,716 54,030 1,053 3,627 23,683 5,567 34,466 ..........................19 5,010 5,824225,285 60,073 119,134 25,441 7,143 11,568 50,901 759 3,663 23,372 5,581 34,498 ..........................26 1976 4,812 6,217226,854 69,919 113,896 22,542 8,071 11,044 52,410 3,955 23,693 5,482 36,806 ...............Jan. 7 4,794 6,247226,521 70,627 113,220 22,668 7,918 10,539 53,813 6 3,718 23,592 5.445 36,781 ..........................14 5,026 6,408 225,389 71,670 111,619 22,484 7,826 10,315 49,716 799 3,413 23,106 5,430 36,907 .........................21 4,776 6,109 225,352 72,459 111,153 22,341 7,807 10,121 53,753 77 3,541 23,070 5,414 36,953 .........................28 5,130 6,643 224,233 73,638 109,485 22,156 7,625 9,725 52,554 5 3,529 24,161 5,196 285 37,125 ...............Feb. 4 4,775 6,108 224,145 74,570 108,790 21,949 7,593 9,657 54,240 12 3,491 23,863 5.445 74 37,130 .........................11 5,446 7,890222,682 74,787 107,651 21,804 7,460 9,389 54,054 3,371 24,095 5,495 75 37,118 .........................18 5,178 5,800223,215 75,269 107,629 22,108 7,527 9,079 54,663 629 2,975 24,348 5,497 76 37,013 .........................25 New York City 1975 3,653 3,403 50,440 6,628 29,336 1,910 3,910 7,127 14,003 1,302 8,437 1,641 9.395 ...............Feb. 5 3,781 2,807 50,332 6,678 29,501 1,974 3,514 7,143 16,185 1,320 8,273 1.650 9.395 .........................12 3,725 3,687 50,062 6,693 29,140 1,985 3,549 7,218 15,121 981 1,229 8,381 1,653 9,387 .........................19 3,685 2,779 50,149 6,731 29,143 2,030 3,615 7,168 12,742 1,210 8,250 1.651 9,391 .........................26 1976 3,340 2,547 46,104 7,988 25,518 1,447 3,036 7,159 14,297 2,054 8,806 1,693 10,324 ...............Jan. 7 3,364 2,735 45,811 8,079 25,277 1,390 3,043 7,022 14,710 1,904 8,943 1,691 10,328 ..........................14 3,504 3,109 45,041 8,191 24,612 1,369 3,059 6,869 12,165 195 1,682 8,924 1,628 10,357 ..........................21 3,370 2,672 44,719 8,320 24,378 1,329 3,094 6,660 13,732 70 1,838 8,818 1,630 10.379 ..........................28 3,798 3,017 44,190 8,536 23,685 1,389 3,032 6,483 13,529 1,759 9,297 1,659 10.395 ...............Feb. 4 3,491 2,619 44,213 8,645 23,529 1,392 3,140 6,466 14,623 1,778 9,421 1,705 10.396 ..........................11 4,030 4,432 43,810 8,621 23,291 1,414 3,114 6,325 14,211 1,697 9,430 1,704 10,408 ..........................18 3,839 2,741 43,847 8,671 23,404 1,484 3,150 6,085 15,001 574 1,283 9,562 1,714 10.380 ..........................25 Outside New York City 1975 1,274 4,039 175,986 52,727 91,121 23,205 3,909 4,470 38,980 2,496 15,358 3,933 25,090 ...............Feb. 5 1,338 2,958 176,439 52,917 91,214 23,486 3,731 4,563 39,356 34 2,446 15,316 3,925 25,140 ..........................12 1,293 3,339 175,087 53,159 90,093 23,357 3,489 4,498 38,909 72 2,398 15,302 3,914 25,079 ..........................19 1,325 3,045 175,136 53,342 89,991 23,411 3,528 4,400 38,159 759 2,453 15,122 3,930 25,107 ..........................26 1976 1,472 3,670 180,750 61,931 88,378 21,095 5,035 3,885 38,113 1,901 14,887 3,789 70 26,482 ...............Jan. 7 1,430 3,512 180,710 62,548 87,943 21,278 4,875 3,517 39,103 6 1,814 14,649 3,754 70 26,453 ..........................14 1,522 3,299 180,348 63,479 87,007 21,115 4,767 3,446 37,551 604 1,731 14,182 3,802 70 26,550 ..........................21 1,406 3,437 180,633 64,139 86,775 21,012 4,713 3,461 40,021 7 1,703 14,252 3,784 73 26,574 .........................28 1,332 3,626 180,043 65,102 85,800 20,767 4,593 3,242 39,025 5 1,770 14,864 3,537 284 26,730 ...............Feb. 4 1,284 3,489 179,932 65,925 85,261 20,557 4,453 3,191 39,617 12 1,713 14,442 3,740 73 26,734 .........................11 1,416 3,458 178,872 66,166 84,360 20,390 4,346 3,064 39,843 1,674 14,665 3,791 74 26,710 .........................18 1,339 3,059 179,368 66,598 84,225 20,624 4,377 2,994 39,662 55 1,692 14,786 3,783 75 26,633 .........................25 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 WEEKLY REPORTING BANKS □ MARCH 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—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 deposits1 Individ­ Part­ liabili­ loans and mand uals ner­ Do­ ties of (gross) invest­ deposits and ships mestic banks ad­ ments ad­ non­ and govern­ All to justed 9 (gross) justed 10 Issued Issued Issued Issued profit cor­ mental other14 their ad­ Total to to Total to to orga­ pora­ units foreign justed 9 IPC’s others IPC’s others niza­ tions for branches tions profit13 Large banks— Total 1975 Feb. 5........................ 294,119 378,412 102,034 89,890 61,842 28,048 37,795 20,967 16,828 59,355 2,230 12........................ 291,027 375,819 100,026 89,776 62,127 27,649 37,764 20,745 17,019 59,595 1,937 19........................ 293,214 379,329 99,444 88,055 60,698 27,357 37,410 20,469 16,941 59,852 1,867 26........................ 290,392375,959 101,672 87,961 60,572 27,389 37,526 20,515 17,011 60,073 1,869 1976 Jan. 7........................ 283,376 384,334 108,538 80,075 53,764 26,311 33,774 18,181 15,593 68,533 989 336 61 3,401 14........................ 280,092381,406 108,374 78,753 53,012 25,741 33,982 17,995 15,987 69,005 1,141 417 64 3,350 21........................ 278,402377,782 104,882 76,867 51,439 25,428 33,932 18,291 15,641 69,779 1,347 484 60 3,449 28............;......... 275,809 375,578 103,742 76,290 50,984 25,306 32,540 17,136 15,404 70,306 1,528 563 62 3,118 Feb. 4........................ 276,908 376,960 103,038 74,215 49,243 24,972 31,924 16,882 15,042 70,843 1,805 761 229 3,258 11........................ 276,258 376,173 103,059 73,643 48,617 25,026 31,216 16,599 14,617 71,835 1,861 745 129 2,987 18........................ 277,059 377,520 100,547 72,113 47,460 24,653 30,782 16,333 14,449 71,969 1,966 759 93 3,253 2 5 275,242 374,481 101,775 71,949 47,235 24,714 30,690 16,246 14,444 72,255 2,141 790 83 3,312 New York City 1975 Feb. 5........................ 76,424 91,338 24,457 30,719 20,516 10,203 9,771 5,824 3.947 6,628 1,251 12........................ 75,438 90,967 23,333 30,613 20,708 9,905 9,653 5,706 3.947 6,678 1.236 19........................ 77,075 92,821 24,092 30,466 20,452 10,014 9,546 5,674 3,872 6,693 1.236 2 6 75,420 91,029 24,928 30,573 20,462 10,111 9,432 5,586 3,846 6,731 1,088 1976 Jan. 7 ........................ 72,761 91,124 24,577 27,175 17,414 9,761 7,557 4,910 2,647 7,832 50 63 43 2,507 14........................ 71,232 89,758 24,987 26,729 17,118 9,611 7,586 4,783 2,803 7,851 62 120 46 2,672 21........................ 70,805 88.444 24,135 26,073 16,588 9,485 7,985 5,285 2,700 7,940 83 126 42 2,598 28........................ 69,413 87,525 23,822 25,864 16,458 9,406 6,971 4,394 2,577 8,036 99 144 41 2,309 Feb. 4........................ 70,415 88,680 24,808 25,205 15,784 9,421 6,840 4,340 2,500 8,134 114 184 104 2,433 11........................ 69,853 87,896 23,180 25,247 15,614 9,633 6,683 4,320 2.363 8,191 134 214 106 2,224 18........................ 70,952 89.444 22,874 24,905 15,433 9,472 6,590 4,226 2.364 8,192 147 212 70 2,447 2 5 70,093 88,172 24,159 24,946 15,529 9,417 6,533 4,222 2,311 8,235 162 218 56 2,380 Outside New York City 1975 Feb. 5........................ 217,695 287,074 77,577 59,171 41,326 17,845 28,024 15,143 12,881 52,727 979 12........................ 215,589284,852 76,693 59,163 41,419 17,744 28,111 15,039 13,072 52,917 701 19........................ 216,139286,508 75,352 57,589 40,246 17,343 27,864 14,795 13,069 53,159 631 2 6 214,972284,930 76,744 57,388 40,110 17,278 28,094 14,929 13,165 53,342 781 1976 Jan. 7........................ 210,615 293,210 83,961 52,900 36,350 16.550 26,217 13,271 12,946 60,701 939 273 18 894 14........................ 208,860291,648 83,387 52,024 35,894 16,130 26,396 13,212 61,154 1,079 297 18 678 21........................ 207,597289,338 80,747 50,794 34,851 15,943 25,947 13,006 12,941 61,839 1,264 358 18 851 28........................ 206,396288,053 79,920 50,426 34,526 15,900 25,569 12,742 12,827 62,270 1,429 419 21 809 Feb. 4........................ 206,493288,280 78,230 49,010 33,459 15.551 25,084 12,542 12,542 62,709 1,691 577 125 825 11........................ 206,405 288,277 79,879 48,396 33,003 15,393 24,533 12,279 63,644 1,727 531 23 763 18....................... 206,107288,076 77,673 47,208 32,027 15,181 24,192 12,107 12,085 63,777 1,819 547 23 806 25....................... 205,149286,309 77,616 47,003 31,706 15,297 24,157 12,024 12,133 64,020 1,979 572 27 932 ▲ See p. A-l 8. 10 All demand deposits except U.S. Govt, and domestic commercial 1 Includes securities purchased under agreements to resell. banks, less cash items in process of collection. 2 Includes official institutions and so forth. 11 Certificates of deposit issued in denominations of $100,000 or more. 3 Includes short-term notes and bills. 12 All other time deposits issued in denominations of $100,000 or more 4 Federal agencies only. (not included in large negotiable CD’s). 5 Includes corporate stocks. 13 Other than commercial banks. • 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 14 Domestic and foreign commercial banks, and official international 7 Includes securities sold under agreements to repurchase. organizations. 8 Includes minority interest in consolidated subsidiaries. 9 Exclusive of loans and Federal funds transactions with domestic com­ mercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ BUSINESS LOANS OF BANKS A23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1976 1976 1975 1975 1975 Industry Feb. Feb. Feb. Feb. Jan. 2nd 1st 25 18 11 4 28 Feb. Jan. Dec. IV III II half half Durable goods manufacturing: Primary metals.................................... 2,056 2,055 2,076 2,048 2,039 17 -34 18 62 -12 -26 50 18 Machinery............................................ 5,469 5,516 5,555 5,529 5,555 -86 -204 -86 -781 -887 -643 -1,668 -1,314 Transportation equipment................ 3,095 3,147 3,170 3,163 3,173 -78 128 -227 -267 -198 -296 -465 -302 Other fabricated metal products... 2,025 2,049 2,003 2,003 2,010 15 37 -132 -473 -277 -211 -750 -188 Other durable goods.......................... 3,579 3,561 3,585 3,602 3,601 -22 148 -151 -514 -174 -324 -688 -718 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,521 3,523 3,507 3,529 3,529 -8 -251 241 455 13 -519 468 -1,609 Textiles, apparel, and leather........... 2,902 2,853 2,841 2,763 2,689 213 -2 -185 -All -55 -148 -532 -287 Petroleum refining.............................. 2,414 2,398 2,379 2,387 2,361 53 -1 -147 -234 118 283 -116 228 Chemicals and rubber....................... 2,686 2,684 2,641 2,593 2,595 91 -96 40 -178 -253 -321 -431 -260 Other nondurable goods................... 1,898 1,923 1,898 1,905 1,894 4 86 -57 -268 -147 9 -415 -283 Mining, including crude petroleum and natural gas................................ 6,175 6,140 6,097 6,095 5,990 185 37 691 789 276 108 1,065 -149 Trade: Commodity dealers................... 1,584 1,586 1,592 1,588 1,608 -24 26 38 340 137 -328 All -972 Other wholesale......................... 5,444 5,483 5,518 5,479 5,431 13 -8 -75 -103 -78 -534 -181 -1,108 Retail............................................ 5,717 5,682 5,758 5,834 5,743 -26 -49 -593 -208 -309 -214 -517 -398 Transportation......................................... 5,961 5,946 5,910 5,926 5,943 18 -125 149 127 -124 -145 3 -321 Communication..................................... 1,818 1,855 1,879 1,894 1,853 -35 -131 -1 -49 -109 17 -158 -357 Other public utilities.......................... 6,494 6,547 6,597 6,698 6,693 -199 -304 66 33 -231 -404 -198 -1,423 Construction............................................ 4,970 4,982 5,003 5,002 5,017 -47 -108 -127 -381 -55 -83 -436 -622 Services...................................................... 10,695 10,748 10,715 10,728 10,727 -32 -92 270 285 -300 -362 -15 -1,120 All other domestic loans....................... 8,984 9,051 9,225 9,557 9,672 -688 -718 869 615 15 -64 630 -372 Bankers acceptances............................... 3,514 3,679 3,671 3,689 3,679 -165 -1,266 928 2,855 -170 28 2,685 599 Foreign commercial and industrial loans................................................... 5,320 5,332 5,276 5,338 5,409 -89 121 154 222 535 233 757 294 Total classified loans.............................. 96,321 96,740 96,896 97,350 97,211 -890 -2,806 1,683 1,850 -2,285 -3,944 -435 -10,664 Comm, paper included in total clas­ sified loans........................................ 433 392 41 -45 254 153 44 -9 197 240 Total commercial and industrial loans of large commercial banks........... 116,201 116,738 116,930117,222 117,000 -799 -3,998 1,844 1,992 -2,590 -4,143 -598 -10,370 For notes see table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1976 1975 1975 Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June 2nd 25 28 31 26 29 24 27 30 25 IV III II I half Durable goods manufactur­ ing: Primary metals..................... 1,335 1,341 1 ,372 1,381 1,320 1,338 1,286 1,269 1,288 34- 50 4 74 85 Machinery............................ 3,072 3,117 3,313 3,451 3,538 3,737 3,825 3,864 3,977 -424 -240 -94 -74 -664 Transportation equipment. 1,643 1,686 1,615 1,727 1,624 1,693 1,722 1,725 1,740 -78 -47 68 -1 -117 Other fabricated metal products............................ 1,035 1,041 1,024 1,087 1,175 1,268 1,228 1,196 1,222 -244 46 -90 115 -187 Other durable goods........... 1,838 1,874 1,823 1,905 1,950 2,012 2,042 2,058 2,090 -189 -78 -161 -140 -272 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,536 1,547 1,578 1,544 1,451 1,471 1,461 1,440 1,514 107 -43 -47 -202 58 Textiles, apparel, and leather................................ 1,055 1,032 995 1,072 1,074 1,103 1,077 1,116 1,095 -108 8 -63 13 -103 Petroleum refining............... 1,886 1,859 1,831 1,860 1,914 1,967 1,889 1,828 1,709 -136 258 226 -35 123 Chemicals and rubber........ 1,603 1,588 1,622 1,549 1,605 1,665 1,645 1,678 1,762 -43 -97 -84 -32 -140 Other nondurable goods.. 942 925 888 955 995 1,056 1,023 1,085 1,143 -168 -87 13 -105 -255 Mining, including crude pe­ troleum and natural gas. 4,731 4,528 4,484 3,867 3,896 3,847 3,754 3,801 3,734 637 113 197 -164 703 Trade: Commodity dealers.. 182 196 172 168 162 150 148 152 148 22 2 -2 -5 24 Other wholesale......... 1,279 1,290 1,276 1,308 1,403 1,319 1,371 1,344 1,329 -43 -10 -121 -42 -62 Retail................... 1,987 2,007 1,996 2,115 2,150 2,153 2,139 2,111 2,136 -157 17 -147 -311 -150 4,329 4,291 4,390 4,324 4,420 4,391 4,405 4,399 4,425 -1 -34 -99 -26 10 Communication....................... 1,095 1,101 1,081 1,112 1,122 1,132 1,149 1,136 1,133 -51 -1 -2 53 -56 Other public utilities............... 3,940 3,995 3,979 3,942 4,027 3,966 3,902 4,018 4,045 13 -79 11 71 -60 2,141 2,258 2,181 2,207 2,267 2,359 2,367 2,360 2,314 -178 45 117 -97 -149 Services..................................... 5,147 5,038 5,135 5,082 5,097 5,122 5,010 5,155 5,140 13 -18 -290 -102 -31 All other domestic loans .... 3,093 3,396 3,299 3,116 3,054 3,244 3,257 3,232 3,258 55 -14 176 -142 49 Foreign commercial and in­ dustrial loans.................... 3,001 2,999 2,921 2,851 2,834 2,763 2,695 2,676 2,594 158 169 66 71 304 46,870 47,109 46,975 46,623 47,078 47,756 47,395 47,643 47,796 -781 -40 -322 -1,081 -890 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 agreenient—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. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 DEMAND DEPOSIT OWNERSHIP o MARCH 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS' (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s in in a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec......................................................................................... 17.3 92.7 53.6 1.3 10.3 175.1 1971—Dec......................................................................................... 18.5 98.4 58.6 1.3 10.7 187.5 1972—Mar......................................................................................... 20.2 92.6 54.7 1.4 12.3 181.2 17.9 97.6 60.5 1.4 11.0 188.4 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973 Mar........................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 June........................................................................................ 18.6 106.6 67.3 2.0 11.8 206.3 Sept........................................................................................ 18.8 108.3 69.1 2.1 11.9 210.3 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 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 Dec......................................................................................... 20.1 125.1 78.0 2.4 11.3 236.9 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—Dec......................................................................................... 14.8 66.9 29.0 2.2 6.8 119.7 1975—Feb......................................................................................... 14.4 63.1 27.9 2.3 6.2 113.9 Mar........................................................................................ 14.1 63.2 28.2 2.2 6.4 114.1 15.0 63.3 30.1 2.2 6.5 117.0 14.2 63.1 29.2 2.3 6.2 115.0 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 66.7 29.0 2.2 6.3 119.3 15.4 68.1 29.4 2.2 6.4 121.6 Dec......................................................................................... 15.6 69.9 29.9 2.3 6.6 124.4 1976 Jan.......................................................................................... 15.2 68.0 30.3 2.2 6.7 122.4 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Sept. 30, Class of Dec. 31, Dec. 31, June 30., Sept. 30, bank 1973 1974 1975 1975 bank 1973 1974 1975 1975 All commercial.... 507 389 338 All member—Cont. Insured................. 503 387 335 323 Other large banks 1............ 58 69 74 74 National member 288 236 223 222 All other member i............. 294 206 186 183 State member.... 64 39 36 35 All nonmember........................ 155 115 79 66 All member............. 352 275 260 257 152 112 76 66 Noninsured........................... 3 3 3 1 Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated depositc, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on p. A-14; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for “Time de­ posits” and “Loans” for call dates as shown on pp. A-l 4-A-l7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 Bytype of loari Date Total Commercial Real All and estate other industrial 1975—Nov. 5........................... 4,771 2,893 197 1,681 12........................... 4,716 2,869 205 1,642 19........................... 4,740 2,877 205 1,658 26........................... 4,701 2,846 205 1,650 Dec. 3........................... 4,677 2,800 201 1,676 10........................... 4,441 2,597 207 1,637 17........................... 4,416 2,575 207 1,634 24........................... 4,486 2,650 204 1,632 31........................... 4,375 2,530 206 1,639 1976—Jan. 7........................... 4,424 2,618 205 1,601 1 To bank’s own foreign branches, nonconsolidated non­ 14........................... 4,369 2,617 205 1,547 bank affiliates of the bank, the bank’s holding company (if 21........................... 4,355 2,598 205 1,552 not a bank), and nonconsolidated nonbank subsidiaries of 28........................... 4,292 2,522 208 1,562 the holding company. Note.—Series changed on Aug. 28, 1974. For a comparison Feb. 4........................... 4,313 2,560 208 1,545 of the old and new data for that date, see p. 741 of the Oct. 11........................... 4,455 2,710 208 1,537 1974 Bulletin. Revised figures received since Oct. 1974 18........................... 4,441 2,719 205 1,517 that affect that comparison are shown in note 2 to this table 25........................... 4,478 2,725 200 1,553 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed 3 placed Total Own Bills Own eign United United bills bought acct. corr.6 States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1 ,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1 ,153 2,408 1970............ 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............ 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972............ 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973............ 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974-Dec. . 49,144 4,611 31,839 12,694 '1,814 6,518 18,484 4,226 4,685 542 999 1,109 12,150 4,023 4,067 10,394 1975-Jan... r51,685 5,029 '32,008 14,648 '1,822 '6,784 18,602 4,357 3,903 454 966 560 12,718 4,120 4,314 10,168 Feb... '52,415 5,167 '32,516 14,732 '1,786 '7,318 18,579 4,864 4,370 494 993 325 12,398 3,974 4,210 10,396 Mar.. ’’50,827 5,342 '31,221 14,264 '1,682 '7,272 18,730 4,773 4,085 688 665 263 13,029 3,845 4,296 10,589 Apr. . ’■51,623 5,461 '32,144 14,018 '1,618 '7,002 18,727 4,485 3,900 585 1,185 235 13,034 3,690 4,206 10,831 May.. ’•51,317 5,889 '32,821 12,607 '1,543 '7,096 18,108 4,450 3,892 558 865 234 12,559 3,665 4,186 10,257 June.. '48,765 5,604 '31,115 12,045 '1,561 '7,230 17,740 4,774 4,224 550 682 319 11,965 3,466 4,080 10,193 July.. ’’49,352 6,018 '31,263 12,072 '1,649 '7,038 16,930 4,778 4,275 503 685 329 11,138 3,474 3,865 9,591 Aug. . '49,810 5,645 '32,172 11,993 '1,511 '7,392 16,456 4,546 3,988 558 840 304 '10,766 3,305 3,806 9,344 Sept.. '48,274 5,574 '30,513 12,187 '1,464 '7,333 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 9,693 Oct.. . 50,437 6,360 32,351 11,726 1,590 7,157 17,304 5,013 4,288 924 1,047 284 10,760 3,467 3,947 9,890 Nov.. 49,557 6,389 32,048 11,120 1,671 7,019 17,875 6,497 5,684 813 727 279 10,372 3,545 3,888 10,443 Dec. . 47,739 6,239 31,325 10,175 1,712 6,941 18,727 7,333 5,899 1,435 1,126 293 9,975 3,726 4,001 11,000 1 Financial companies are institutions engaged primarily in activities 4 Nonfinancial companies include public utilities and firms engaged such as, but not limited to, commercial, savings, and mortgage banking; primarily in activities such as communications, construction, manufac­ sales, personal, and mortgage financing; factoring, finance leasing, and turing, mining, wholesale and retail trade, transportation, and services. other business lending; insurance underwriting; and other investment 5 Included in dealer- and directly-placed financial company columns. activities. Coverage of bank-related companies was expanded in Aug. 1974, Most 2 As reported by dealers; includes all financial company paper sold in of the increase resulting from this expanded coverage occurred in directlythe open market. placed paper. 3 As reported by financial companies that place their paper directly 6 Beginning November 1974, the Board of Governors terminated the with investors. System guarantee on acceptances purchased for foreign official accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 INTEREST RATES □ MARCH 1976 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Monthly average rate 1974—Apr. 11 10 1975—Jan. 9 101/4 1975—July 18,, 71/4 1974—Oct. 11.68 19 10 y4 15 10 28, , 71/2 Nov. 10.83 25 101/2 20 9y4 Dec. 10.50 28 91/2 Aug. 12., 73^ May 2 io% 1975—Jan. 10.05 6 11 Feb. 3 91/4 Sept. 15., 8 Feb. 8.96 10 ii 10, 9 Mar. 7.93 17 in/2 18 sy4 Oct. 27 m Apr. 7.50 24, 81/2 May 7.40 June 26 ny4 Nov. 5. . m June 7.07 Mar. 5, 81/4 July 7.15 July 5 n 10 8 Dec. 2 m Aug. 7.66 18, 73/4 Sept. 7.88 Oct. 7 uy4 24, m 1976—Jan. 12 1 Oct. 7.96 21 m/2 21.. ey4 Nov. 7.53 28 in/4 May 20, 71/4 Dec. 7.26 Nov. 4 11 June 9, 1976—Jan. 7.00 14 103/4 Feb. 6.75 25 101/2 Note.—Effective Apr. 16, 1973, with the adoption of a two-tier or “dual prime rate,” this table shows only the “large-business prime rate,” which is the range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1--9 10-99 100-499 500-999 1,000 and over Center Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 1975 Short-term 35 centers......................................... 8.29 8.22 9.56 9.42 9.15 9.02 8.62 8.48 8.38 8.29 8.04 8.00 New York City.......................... 7.99 8.00 9.34 9.28 8.98 8.89 8.52 8.44 8.17 7.93 7.87 7.93 7 Other Northeast..................... 8.53 8.43 10.01 9.83 9.36 9.33 8.83 8.71 8.61 8.67 8.15 8.01 8 North Central.......................... 8.15 8.12 9.13 9.01 8.97 8.79 8.51 8.39 8.27 8.25 7.91 7.94 7 Southeast.................................. 8.70 8.41 9.68 9.58 9.39 9.21 8.74 8.57 8.62 8.32 8.36 7.94 8 Southwest................................. 8.37 8.28 9.38 9.21 8.94 8.76 8.44 8.27 8.18 8.32 8.15 8.06 4 West Coast.............................. 8.67 8.45 9.73 9.67 9.29 9.21 8.77 8.51 8.76 8.28 8.56 8.37 Revolving credit 35 centers......................................... 8.26 8.17 9.93 9.73 9.15 9.06 8.59 8.45 8.41 8.68 8.20 8.07 New York City.......................... 8.08 8.37 9.01 8.91 8.90 8.94 8.54 8.41 8.44 8.30 8.03 8.37 7 Other Northeast..................... 8.63 8.09 10.38 10.11 8.91 9.01 8.09 8.01 8.19 8.78 8.72 7.98 8 North Central......................... 8.62 8.27 10.11 9.70 9.57 9.58 9.34 8.81 8.65 8.56 8.49 8.12 7 Southeast.................................. 9.50 7.82 10.12 10.07 9.53 9.47 8.74 8.35 8.30 7.50 10.12 7.50 8 Southwest................................. 8.51 8.41 9.18 9.36 9.15 8.88 8.62 8.46 8.49 8.11 8.42 8.49 4 West Coast.............................. 8.15 8.02 9.71 9.27 8.99 8.84 8.34 8.39 8.32 9.10 8.09 7.83 Long-term 8.88 8.89 9.76 9.45 9.18 9.47 9.11 9.01 9.16 8.54 8.79 8.89 New York City.......................... 8.44 8.77 7.37 8.80 9.09 8.53 9.13 8.86 9.46 8.01 8.32 8.80 7 Other Northeast..................... 9.10 8.96 9.84 9.35 9.39 10.09 9.02 9.56 8.02 9.28 9.33 8.60 8 North Central......................... 9.03 9.45 9.71 9.71 8.55 9.24 8.94 8.50 9.90 8.23 8.97 9.81 7 Southeast.................................. 8.87 8.91 7.82 8.87 8.84 9.66 9.06 9.54 9.36 8.04 8.54 8.30 8 Southwest................................ 8.88 8.41 11.60 9.69 9.44 9.38 9.39 8.67 8.97 8.62 8.65 8.18 4 West Coast.............................. 9.27 8.57 9.90 9.60 9.90 9.24 9.32 9.28 9.49 8.47 9.21 8.47 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills6 6-month bills6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Markfet 1 -year issues 7 days months months2 on new yield on new yield* bill (mar­ Other7 issue issue ket yield)6 1967. 5.10 4.89 4.75 4 22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1974. 10.05 9.87 8.62 9.92 10.51 7.886 7.84 7.926 7.95 7.71 8.25 7.81 1975. 6.26 6.33 6.16 6.30 5.82 5.838 5.80 6.122 6.11 6.30 6.70 7.55 1975—Feb.. 6.36 6.33 6.24 6.35 6.24 5.583 5.50 5.674 5.62 5.56 5.97 6.85 Mar.. 6.06 6.06 6.00 6.22 5.54 5.544 5.49 5.635 5.62 5.70 6.10 7.00 Apr.. 6.11 6.15 5.97 6.15 5.49 5.694 5.61 6.012 6.00 6.40 6.83 7.76 May. 5.70 5.82 5.74 5.76 5.22 5.315 5.23 5.649 5.59 5.91 6.31 7.49 June. 5.67 5.79 5.53 5.70 5.55 5.193 5.34 5.463 5.61 5.86 6.26 7.26 July.. 6.32 6.44 6.02 6.40 6.10 6.164 6.13 6.492 6.50 6.64 7.07 7.72 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 Dec.. 5.88 5.97 5.86 5.72 5.20 5.504 5.44 5.933 5.85 6.16 6.51 7.50 1976—Jan.. 5.15 5.27 5.16 5.08 4.87 4.961 4.87 5.238 5.14 5.44 5.71 7.18 Feb.. 5.13 5.23 5.09 4.99 4.77 4.852 4.88 5.144 5.20 5.53 5.78 7.18 Week ending— 1975—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 Dec. 6. 5.85 5.98 5.88 5.80 5.25 5.550 5.57 5.995 6.04 6.30 6.65 7.59 13. 5.98 6.03 5.95 5.81 5.26 5.633 5.60 6.144 6.06 6.43 6.79 7.67 20. 5.95 6.03 5.95 5.72 5.17 5.491 5.44 5.914 5.85 6.20 6.54 7.50 27. 5.84 5.94 5.75 5.65 5.18 5.340 5.28 5.678 5.60 5.91 6.25 7.37 1976—Jan. 3. 5.69 5.81 5.69 5.52 5.18 5.208 5.19 5.507 5.49 5.77 6.11 7.28 10. 5.33 5.40 5.33 5.25 5.12 5.226 5.07 5.521 5.32 5.58 5.91 7.20 17. 5.10 5.23 5.13 5.04 4.76 4.826 4.84 5.066 5.11 5.41 5.68 7.14 24. 5.10 5.23 5.10 5.01 4.81 4.783 4.78 5.046 5.06 5.37 5.65 7.18 31. 5.00 5.13 5.00 4.94 4.80 4.763 4.72 5.052 5.00 5.32 5.53 7.16 Feb. 7. 5.05 5.15 5.00 4.95 4.82 4.811 4.90 5.066 5.15 5.45 5.71 7.16 14. 5.13 5.25 5.13 4.97 4.73 4.872 4.85 5.133 5.13 5.47 5.74 7.17 21. 5.22 5.28 5.13 5.02 4.70 4.854 4.87 5.171 5.22 5.58 5.79 7.20 28. 5.13 5.25 5.13 5.04 4.80 4.870 4.90 5.204 5.28 5.62 5.86 7.18 1 Averages of the most representative daily offering rate quoted by rates. Prior to this date, the daily effective rate was the rate considered dealers. most representative of the day’s transactions, usually the one at which 2 Averages of the most representative daily offering rate published by most transactions 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 July 19, 1973, the daily effective Federal funds rate is an average of Note.—Figures for Treasury bills are the revised series described on p. the rates on a given day weighted by the volume of transactions at these A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 INTEREST RATES □ MARCH 1976 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total 1 States (long­ Re­ Aaa Baa Indus­ Rail­ Public term) Totaff Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970..................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971..................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972..................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 .................... 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974.................... 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1975 ..................... 6.98 7.05 6.42 7.62 9.40 9 41 9.46 8.83 10.39 9.25 9.39 9.88 8.38 4.31 1975—Feb........... 6.61 6.40 5.96 7.03 8.97 9.09 9.33 8.62 10.43 9.01 9.32 9.83 8.07 4.61 6.73 6.70 6.28 7.25 9.35 9.38 9.28 8.67 10.29 9.05 9.25 9.67 8.04 4.42 10.10 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 9.06 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 Dec.......... 7.17 7.29 6.50 7.96 9.36 9.21 9.45 8.79 10.35 9.26 9.37 9.87 8.57 4.14 1976—Jan........... 6.94 7.08 6.22 7.81 8.70 8.79 9.33 8.60 10.24 9.16 9.32 9.68 8.16 3.80 Feb........... 6.92 6.94 6.04 7.76 8.63 8.63 9.23 8.55 10.10 9.12 9.25 9.50 8.00 3.67 Week ending— 1976—Jan. 3.. 7.05 7.26 6.45 7.92 9.10 9.40 8.66 10.33 9.21 9.36 9.79 8.48 4.08 10.. 6.96 7.12 6.25 7.84 8.88 8.94 9.37 8.63 10.31 9.18 9.34 9.75 8.42 3.91 17.. 6.90 7.10 6.25 7.83 8.64 8.68 9.34 8.60 10.26 9.17 9.33 9.71 8.22 3.78 24.. 6.93 7.02 6.15 7.78 8.62 8.69 9.31 8.58 10.20 9.15 9.32 9.64 7.97 3.74 31.. 6.94 6.90 6.00 7.68 8.66 8.68 9.28 8.57 10.16 9.13 9.30 9.59 8.04 3.75 Feb. 7.. 6.93 6.90 6.00 7.70 8.68 8.62 9.26 8.56 10.14 9.14 9.28 9.52 7.91 3.63 14.. 6.96 6.95 6.05 7.77 8.68 9.25 8.57 10.12 9.13 9.27 9.52 7.95 3.67 21.. 6.94 6.96 6.06 7.78 ‘ 8.64 8.67 9.23 8.56 10.09 9.12 9.23 9.50 7.99 3.71 28.. 6.88 6.96 6.06 7.78 8.58 8.56 9.19 8.51 10.04 9.10 9.20 9.44 8.14 3.65 Number of issues2............. 20 5 5 121 20 30 41 30 40 14 500 500 15 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 prjce index. Quarterly earnings are seasonally Govt., averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more; from Federal Reserve Bank of New York. (2) State and local NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Stock Market Customer Financing: Note.—Annual data are averages of daily or weekly figures. Monthly 1 Margin credit includes all credit extended to purchase or carry stocks and weekly data are averages of daily figures unless otherwise noted and are or related equity instruments and secured at least in part by stock (Dec. computed as follows: U.S. Govt, bonds, derived from average market 1970 Bulletin, p. 920). Credit extended by brokers is end-of-month data yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year for member firms of the New York Stock Exchange. June data for banks bond. Municipal and corporate bonds, derived from average yields as are universe totals; all other data for banks represent estimates for all computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- commercial banks based on reports by a reporting sample, which ac­ year bond; Wed. closing prices. Common stocks, derived from com­ counted for 60 per cent of security credit outstanding at banks on June 30, ponent common stock prices. Average daily volume of trading, presently 1971. conducted 5 days per week for 6 hours per day. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of over the counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ SECURITY MARKETS A29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43= 10) (Dec. 31, 1965=50) change total index ( G t l U e o r o . n m S v g t . ) . ­ S l a o t n c a a d te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t r o i a o r n t n a s ­ ­ Utility na F n i­ ce 1 ( 9 A 1 3 7 0 u 1 3 0 , g ) = . NYSE AMEX 1970............................ 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971............................ 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 15,381 4,234 1972............................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973............................ 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1974............................ 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31 .89 29.82 49.67 79.97 13,883 1 ,908 1975 ............................ 57.44 68.9 56.2 85.17 96.15 37.48 41.21 45.73 51.88 30.73 31.45 46.62 83.15 18,568 2,150 1975—Feb................. 60.27 74.1 56.6 80.10 89.29 37.80 40.37 42.48 46.00 30.21 31 .31 47.59 76.08 22,311 2,545 Mar................ 59.33 70.9 56.2 83.78 93.90 38.35 39.55 44.35 48.63 31.62 31.04 47.83 79.15 22,680 2,665 Apr................. 57.05 69.5 55.8 84.72 95.27 38.55 38.19 44.91 49.74 31.70 30.01 47.35 82.03 20,334 2,302 May............... 57.40 69.6 56.6 90.10 101,05 38.92 39.69 47.76 53.22 32.28 31 .02 49.97 86.94 21,785 2,521 June............... 58.33 69.8 56.7 92.40 103.68 38.97 43.65 49.21 54.61 30.79 32.78 52.20 90.57 r21,286 2,743 July................ 58.09 68.5 56.6 92.49 103.84 38.04 43.67 49.54 54.96 32.88 32.98 52.51 93.28 20,076 2,750 Aug................ 56.84 68.3 55.6 85.71 96.21 35.13 41 .04 45.71 50.71 30.14 31.02 46.55 85.74 13,404 1 ,476 Sept................ 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 12,717 1 ,439 Oct.................. 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 15,893 1,629 Nov................ 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 16,795 1,613 Dec................. 56.03 67.4 56.1 88.74 94.89 37.07 43.25 46.78 63.70 31 .61 32.75 43.86 82.50 15,859 1 ,977 1976—Jan.................. 57.75 69.7 57.0 96.86 108.45 41.42 46.99 51 .31 56.72 35.77 35.23 48.83 91 .47 32,794 3,070 Feb................. 57.86 68.8 57.1 100.64 113.43 43.40 47.22 53.73 59.79 38.53 36.12 52.06 100.58 31,375 4,765 Week ending— 1976—Feb. 7........ 57.81 69.3 57.1 100.76 113.00 42.93 47.94 53.61 59.67 37.44 36.12 51.83 97.43 31,498 3,710 14 57.62 68.7 56.7 100.16 112.39 43.23 47.14 53.45 59.51 38.02 35.84 51.74 98.69 27,556 3,524 21 57.77 68.6 57.1 100.60 112.92 43.71 47.12 53.80 59.81 39.14 36.31 52.06 102.03 34,770 6,431 28........ 58.17 68.6 57.4 101.03 113.52 43.78 46.67 54.09 60. 17 39.63 36.23 52.60 104.44 32,356 5,730 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated : Unregu­ lated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1975—Jan... 4,934 4,086 848 3,950 806 134 29 1,919 410 1,450 Feb.. 5,099 4,269 830 4,130 783 136 34 1,897 480 1,610 Mar.. 5,164 4,320 844 4,180 800 134 30 1,882 515 1,770 Apr.. 5,327 4,503 824 4,360 781 138 30 1,885 505 1.790 May. 5,666 4,847 819 4,700 779 140 27 1 ,883 520 1 ,705 June. 5,140 844 4,990 805 146 28 2,434 520 1.790 July. 5,446 820 5.300 780 143 29 2,387 555 1,710 Aug.. 5,365 832 5,220 791 142 30 2,457 515 1,500 Sept.. 5,399 5,250 145 470 1,455 Oct.. 5,448 5.300 144 545 1,495 Nov.. 5,519 5,370 146 490 1,470 Dec.. 5,540 5,390 147 475 1,525 1976—Jan......................................................... 5,568 5,420 655 1,975 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT: SAVINGS INSTITUTIONS □ MARCH 1976 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total E pe n r d i o o d f l ( d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t r a e t d u i s t 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n to ( f b m d a i o l l a l l n l i a o c r n e s s ) lars) 1 1975—Jan....................... 41.1 39.3 19.8 7,185 1975—Jan.. 3,950 5.6 7.3 13.5 24.6 28.1 21.2 Feb....................... 42.2 40.1 17.8 7,303 Feb.. 4,130 5.9 7.2 14.6 25.4 28.5 18.4 Mar...................... 44.4 40.1 15.5 7,277 Mar.. 4,180 6.5 8.0 15.3 27.6 25.8 16.9 45.2 41.1 13.7 7,505 Apr.. 4,360 7.1 8.7 16.1 28.7 23.5 15.9 May..................... 44.5 43.2 12.3 7,601 May. 4,700 7.0 9.1 16.7 31 .5 21 .0 13.4 June..................... 45.9 43.1 11.0 7,875 June. 4,990 7.4 9.9 18.3 32.7 20.4 11.4 July...................... 45.6 41.1 13.1 7,772 July.. 5,300 6.0 8.3 13.9 23.6 30.4 17.9 43.5 40.6 16.0 7,494 Aug.. 5,220 5.5 6.8 11.3 20.7 31.0 24.7 45.3 38.9 15.8 7,515 Sept.. 5,250 5.1 7.3 10.6 19.6 31.0 26.5 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 45.3 40.2 14.5 7,425 Nov.. 5,370 5.2 6.7 12.2 23.2 28.6 24.0 43.8 40.8 15.4 7,290 Dec.. 5,390 5.3 6.9 11.6 22.3 28.8 25.0 1976—Jan....................... 45.8 44.0 10.4 7,774 1976—Jan... 5,420 7.0 8.9 17.0 21.3 28.8 15.5 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 .S vt . . S l a o t n a c d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r li T a a t o b i n e t i d s a li l ­ De i p ts os­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity 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 1973............... 73,231 3,871 2,957 926 21 ,383 1,968 2,314 106,651 96,496 2,566 7.589 1,250 598 405 1,008 3,261 1974............... 74,891 3,812 2,555 930 22,550 2,167 2,645 109,550 98,701 2,888 7,961 664 418 232 726 2,040 1974—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 Oct.. .. 76,655 4,481 4,368 1,523 27,106 1,805 3,152 119,089 107,812 2,950 8,328 950 368 275 394 1,987 Nov. 76,855 4,550 4,601 1,551 27,421 1,872 3,223 120,073 108,480 3,215 8,378 972 323 222 379 1,896 Dec__ 77,127 4,028 4,777 1,541 27,964 2,367 3,195 120,999 109,796 2,770 8,433 896 301 203 403 1,803 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

MARCH 1976 □ SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l Total U St n a i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks M ga o g r e t s ­ e R st e a a t l e P lo o a li n c s y O as t s h e e t r s 1971............................................. 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972............................................ 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973............................................ 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 1974............................................ 263,817 11,890 4,396 3,653 3,841 119,580 97,430 22,150 86,258 8,249 22,899 14,941 1974—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 25,399 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 Julv................................. 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 Sept................................. 281,847 13,150 4,914 4,122 4,114 131,524 104,529 26,995 88,445 9,210 24,048 15,470 Oct................................... 284,829 13,793 5,505 4,148 4,140 133,237 105,473 27,764 88,655 9,356 24,171 15,617 Nov................................. 286,975 14,129 5,762 4,210 4,157 134,495 106,385 28,110 88,850 9,464 24,271 15,766 Dec.*.............................. 289,084 14,582 5,894 4,440 4,248 135,014 106,755 28,259 89,358 9,634 24,389 16,107 i Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ End of period Invest­ as T s o e t t a s— l Bor­ Loans ou m ts it t m an e d n i t n s g M ga o g r e t s ­ s m ec e u n r t ­ Cash Other liabilities S c a a v p i i n ta g l s wo N r e t t h 2 m ro o w ne e y d 3 pro in cess Other a p t e e r n i d o d o 4 f ities 1 1971...................................... 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972...................................... 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735................................... 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974'................................... 249,293 23,240 22,991 295,524 242,959 18,436 24,780 3,244 6,105 7,454 1975*................................... 278,693 30,900 28,802 338,395 286,042 19,776 20,730 5,187 6,659 10,675 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 31,652 28,145 333,393 279,465 19,663 20,327 5,207 8,731 11,748 Nov.......................... 275,919 32,498 28,610 337,027 281,711 19,919 20,434 5,164 9,799 11,365 Dec.......................... 278,693 30,900 28,802 338,395 286,042 19,776 20,730 5,187 6,659 10,675 1976—Jan.*....................... 280,071 34,271 29,716 344,058 291,418 19,948 19,652 5,051 7,989 11,111 1 Excludes stock of the Federal Home Loan Bank Board. Compensating in other assets. The effect of this change was to reduce the mortgage changes have been made in “Other” assets. total by about $0.6 billion. 2 Includes net undistributed income, which is accrued by most, but not Also, GNMA-guaranteed, mortgage-backed securities of the pass­ all, associations. through type, previously included in “Cash” and “Investment securities” 3 Advances from FHLBB and other borrowing. are included in “Other” assets. These amounted to about $2.4 billion at 4 Data comparable with those shown for mutual savings banks (on the end of 1972. opposite page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. Note.—FHLBB data; figures are estimates for all savings and loan 5 Beginning 1973, participation certificates guaranteed by the Federal assns. in the United States. Data are based on monthly reports of insured Home Loan Mortgage Corporation, loans and notes insured by the assns. and annual reports of noninsured assns. Data for current and Farmers Home Administration, and certain other Govt.-insured mortgage- preceding year are preliminary even when revised. type investments, previously included in mortgage loans, are included Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 FEDERAL FINANCE □ MARCH 1976 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt. Trea­ financ­ deficit debt Agency accc•unts Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net2 ties ties notes i ing Special balance issues Other Fiscal year: 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 1,623 19,442 1,362 1,108 6,255 197 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 1975 280,997 324,601 -43,604 58,953 -1,069 8,112 -1,081 50,853 -1,570 rl ,890 ’•-6,920 Half year: 1974—Jan.-June 140,676 r138,030 r2,646 5,162 426 8,297 295 r —3,005 -1,215 n ,208 r352 July-Dee. 139,607 153,147 -13,540 18,429 -689 2,840 150 14,751 -3,228 557 -3,881 1975 —Jan.-June '141.189 171,202 -30,013 40,524 -423 5,272 -1 ,231 36,059 ’-1,657 1,643 -2,746 July-Dee. 139,453 184,545 -45,092 43,460 -39 -4,739 -1,186 49,347 866 -980 -4,368 Month: 1975—Jan.____r 24,992 28,979 -3,987 1,475 7 -2,173 -42 3,697 -58 349 580 Feb........... 19,975 26,200 -6,225 5,571 -306 1,224 -495 4,535 -2,359 -132 -801 Mar.......... 20,134 27,986 -7,852 9,949 5 -1 ,216 -79 11,249 3,115 285 3 Apr.......... 31,451 29,601 1 ,850 7,081 -37 10 -451 7,485 7,666 1,847 178 May......... 12,793 28,186 -15,394 11 ,418 -6 3,296 -440 8,556 -5,757 -732 349 June......... 31,817 30,296 1,521 5,030 -55 4,131 276 567 -949 56 -2,981 July.......... 20,197 31,249 -11,052 5,051 -23 -2,427 -346 7,800 -3,390 -1,373 -1 ,511 Aug.......... 23,584 30,634 -7,050 9,472 6 2,384 -94 7,189 -630 -263 -1 ,032 Sept.......... 28,615 29,044 -429 5,935 9 -2,151 -367 8,463 6,961 446 -627 Oct........... 19,316 32,425 -13,109 8,352 -5 -3,656 260 11,743 -203 -348 815 Nov......... 21,745 29,401 -7,656 4,800 -3 -749 -390 5,936 -3,844 392 -1,732 Dec.......... 25,995 31,792 -5,797 9,850 -24 1,860 -249 8,215 1 ,971 166 -281 1976—Ja n 25,634 30,725 7,757 -2 -393 328 7,820 3,532 114 918 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p th i o e e s s r i 3 ­ Total se P c d u u e b r b i l t t i i c es s A ec g u e r n it c i y es S is p G I s e u n c o e v i v a s e t l s , t m ac e c n o t u O s n t o h ts f e r S n L p o e e t c e s i s s a : i l E T q o u t a a l l s: s c p p o G o r N r i n o p v o s v a s o w t . t r . — e - e 4 d Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,634 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 88 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 197 5 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 (5) 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 2,745 70 5,928 492,664 ’•11,323 117,761 25,423 (5) -•360,804 76,459 197 5 7,286 1,159 7 8,452 576.649 10,904 118,294 23,006 446,253 Month: 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 r24,886 369,049 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 "23,916 396,339 75,140 June.... 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 396,906 76,092 July.. . . 2,776 878 444 4,098 538,240 10,920 120.606 23,847 404,707 77,173 Aug.. . , 2,349 1,214 -141 3,423 547.711 10,926 122,990 23,752 411,895 76,659 Sept.. . , 8,074 2,162 529 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 78,016 Nov... . 4,919 1,558 9 6,485 566,799 10,928 116,434 23,255 438,037 78,451 Dec___ 7,286 1,159 7 8,452 576.649 10,904 118,294 23,006 446,253 78,842 1976—Ja n 10,075 1,905 11,987 584,405 10,902 117,901 23,333 454,072 1 Represents non-interest-bearing public debt securities issued to the taries” (deposits in certain commercial depositaries that have been con­ International Monetary Fund and international lending organizations. verted from a time to a demand basis to permit greater flexibility in New obligations to these agencies are handled by letters of credit. Treasury cash management). 2 Includes accrued interest payable on public debt securities until June 4 Includes debt of Federal home loan banks, Federal land banks, R.F.K. 1973 and total accrued interest payable to the public thereafter; deposit Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate funds; miscellaneous liability (includes checks outstanding) and asset credit banks and banks for cooperatives (both beginning Dec. 1968). accounts; seigniorage; increment on gold; fiscal 1974 conversion of in­ 5 Beginning July 1974, public debt securities excludes $825 million of terest receipts of Govt, accounts to an accrual basis; gold holdings, gold notes issued to International Monetary Fund to conform with Office of certificates and other liabilities, and gold balance beginning Jan. 1974; Management and Budget’s presentation of the budget. and net gain/loss for U.S. currency valuation adjustment beginning June 1975. 3 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

MARCH 1976 □ FEDERAL FINANCE A33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus­ Estate Misc. Elec­ Non­ Gross contribution2 Un- Other taxes toms and re­ With­ tion with­ Re­ Net re­ Re­ empl. net Net gift ceipts4 held Cam­ held funds total ceipts funds insur. re­ total paign Pay­ Self- ceipts3 Fundi roll empl. taxes Fiscal year: 1972......................... 208,649 83,200 25,67914,143 94,737 34,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 1973......................... 232,225 98,093 27,01721,866 103,24639,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 1974......................... 264,932 112,092 2830,81223,952 118,95241,744 3,125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 1975......................... 280,997 122,071 32>-34,29634,013 122,38645,747 5,12571,789 3,417 6,770 4,46686,441 16,551 3,676 4,611 6,711 Half year: 1974—Jan.-June.. 140,676 59,100 2824,60522,953 60,78225,155 1,631 32,919 2,807 3,862 2,08441,671 7,878 1,701 2,521 2,601 July-Dee... 139,607 61,378 7,098 1,016 67,461 18,247 2,01634,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,140 1975—Jan.-June.. 141,190 60,694 27,19832,997 54,92627,500 3,109 37,371 3,163 3,856 2,27946,667 7,790 1,718 2,327 3,370 July-Dee... 139,453 59,549 7,649 1,362 65,835 18,810 2,735 35,443 268 2,861 2,31440,886 8,759 1,927 2,573 3,397 Month: 1975—Jan.............. r24,992 ''10,255 1r5,367 132 r 15,489 1,745 557 4,802 223 245 r403 5,673 1,351 307 385 r599 Feb.............. 19,975 10,964 7 1,046 4,264 7,747 1,275 496 7,670 225 732 352 8,979 1,277 260 399 535 Mar............. 20,134 9,624 8 2,661 8,152 4,134 7,228 649 6,268 208 21 373 6,870 1,160 295 356 741 Apr.............. 31,451 9,558 1512,766 6,258 16,065 5,819 726 5,438 1,743 557 388 8,126 1,166 286 317 399 May............ 12,793 10,300 81912,749 -1,630 1 ,192 18 7,689 340 2,209 350 10,588 1,373 270 459 559 J une............ 31,817 10,027 4,541 1,444 13,123 10,241 664 5,552 373 92 413 6,431 1,464 301 412 508 July............. 20,197 9,205 908 498 9,615 1,838 471 5,309 444 374 6,128 1,514 313 503 r757 Aug............. 23,584 10,246 488 331 10,403 1,045 425 8,085 1,257 372 9,713 1,394 302 430 r723 Sept............. 28,615 9,182 4,809 382 13,609 6,277 264 5,555 251 75 400 6,280 1,430 312 431 539 Oct.............. 19,316 9,983 589 -81 10,653 1,694 821 4,551 259 395 5,206 1,462 343 396 382 Nov....... 21,745 10,195 283 124 10,354 1,072 399 6,900 716 377 7,994 1,476 310 428 511 Dec.............. 25,995 10,738 571 109 11,200 6,884 354 5,043 17 110 395 5,565 1,482 347 386 485 .............. 25,634 9,518 1 5,843 86 15,276 1,771 1927186—5J,a5n40 225 223 442 6,430 1,335 348 401 292 Budget outlays Gen­ Nat­ Educa­ Gen­ Rev­ eral ural Com- tion, eral enue Undis- Na­ sci­ Agri­ re­ Com­ mun. training, Health Govt., shar. trib. Period Total tional Intl. ence, cul­ sources, merce and employ­ and Vet­ Inter­ law and off­ de­ affairs space, ture envir., and region. ment, wel­ erans est en­ fiscal setting fense and and transp. devel­ and fare force., assist­ re­ tech. energy opment social and ance ceipts 5 serv. justice Fiscal year: 1973..................... 246,526 75,072 2,956 4,030 4,855 5,947 9,930 5,529 11,874 91,790 12,013 22,813 4,813 67,222 -12,318 1974..................... 268,392 78,569 3,593 3,977 2,230 6,571 13,096 4,911 11,598 106,505 13,386 28,072 5,789 6,746 16,651 1975..................... 324,601 86,585 4,358 3,989 1,660 9,537 16,010 4,431 15,248 136,252 16,597 30,974 6,031 7,005 -14,075 19767.................... 373,535 92,759 5,665 4,311 2,875 11,796 17,801 5,802 18,900 160,646 19,035 34,835 6,949 7,169 -15,208 TQ78.................... 97,971 25,028 1,334 1,157 742 3,289 4,819 1,529 4,403 41,033 4,362 9,769 1,875 2,046 -3,589 19777................... 394,237 101,129 6,824 4,507 1,729 13,772 16,498 5,532 16,615 171,508 17,196 41,297 6,859 7,351 -18,840 Month: 1975—Jan............ 28,979 7,269 357 371 545 657 1,592 379 1,478 11,673 1,397 2,536 502 1,566 -1,342 Feb........... 26,200 7,528 382 350 156 468 666 199 1,024 11,174 1,993 2,618 467 -826 Mar.......... 27,986 7,435 503 379 347 723 1,415 19 1,209 12,154 1,811 2,656 568 3 -1 ,236 Apr........... 29,601 7,555 109 368 275 611 1,088 309 1,838 12,379 1,466 2,716 416 1,524 -1,053 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 “ *-14 -1,601 July.......... 31,249 7,307 531 476 270 821 2,256 402 1,237 13,092 1,367 2,637 321 1,625 -1,094 Aug.......... 30,634 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 1,899 440 1,571 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 Nov.......... 29,401 7,533 419 405 196 786 1,203 315 1,653 12,612 1,624 2,996 531 15 -887 Dec........... 31,792 7,981 290 409 175 814 1,994 433 1,515 13,721 1,704 2,820 1,154 1 -1,221 1976—Jan............ 30,725 6,915 351 336 228 718 1,819 421 1,478 13,714 1,626 2,813 121 1,627 -1,441 1 Collections of these receipts, totaling $2,427 million for fiscal year 1977. Figures for outlay categories exclude special allowances for con­ 1973, were included as part of nonwithheld income taxes prior to Feb. tingencies and civilian agency pay raises totaling $200 million for fiscal 1974. year 1976, $175 million for the transition quarter (TQ), and $2,260 million 2 Old-age, disability, and hospital insurance, and Railroad Retirement for fiscal year 1977, and therefore do not add to totals. accounts. 8 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is 3 Supplementary medical insurance premiums and Federal employee being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1retirement contributions. Sept. 30 of 1976, data for which are shown separately from fiscal year 4 Deposits of earnings by F. R. Banks and other miscellaneous receipts. 1976 and fiscal year 1977 totals, will be a transition quarter. 5 Consists of interest received by trust funds, rents and royalties on the Outer Continental Shelf, and Govt, contributions for employee retirement. 6 Contains retroactive payments of $2,617 million for fiscal 1972. Note.—Half years may not add to fiscal year totals due to revisions in 7 Estimates presented jn Budget of the U.S. Government, Fiscal Year series that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 U.S. GOVERNMENT SECURITIES a MARCH 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p d T g u e r o b b o t l t a s i s c l i Total Bills Ma C c r e a k r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o e b o n r l n e d t­ ­ s Total N 3 onm F is o s a u r r e e k i s g e t n 4 a bl S e b a o a v n n in d d g s s i S s p su e e c s ia 5 l notes 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Dec. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—Dec. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—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 Dec. 576.6 457.1 363.2 157.5 167.1 38.6 2.3 91.7 21.6 67.9 118.5 1976—Jan.. 584.4 463.8 369.3 159.6 171 .1 38.6 2.3 92.2 21.6 68.2 118.1 Feb. 593.9 473.7 378.8 162.1 177.6 39.1 2.3 92.7 21.7 68.6 119.2 1 Includes non-interest-bearing debt (of which $614 million on Feb. 29, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1976, 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): depositary 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 Total U.S. E p n er d i o o d f p g d u r e b o b s li t s c ag G t a e r o n n u v c d s t i t e . s B F a . n R k . s Total m C b e a o r n m c k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie e r ­ s ­ r c O a o t t r i h p o e n o r s ­ g S l a o o t n v c a a d t t s e l . Savi I n n g d s ividu O a t ls her n F a i o t n a i r o t n e e n d i r g a ­ n l 1 t O i m o n r t v i h s s e c e s . 2 r ­ funds bonds securities 1968—Dec................. 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec.................. 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec.................. 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................. 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................. 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—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................. 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 Oct.................. 562.0 138.8 87.2 336.0 80.5 4.2 7.9 17.5 33.8 66.8 23.2 66.9 35.2 Nov................. 566.8 137.7 85.1 343.9 82.6 4.4 8.8 20.0 33.9 67.1 23.5 66.1 37.5 Dec.*.............. 576.2 137.4 87.9 350.9 85.8 4.5 9.3 20.2 33.8 67.3 23.7 66.5 38.3 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

MARCH 1976 □ U.S. GOVERNMENT SECURITIES A35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 1972—Dec. 31........................................................ 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Dec. 31........................................................ 270,224 141,571 107,786 33,785 81,715 25,134 15,659 6,145 1974—Dec. 31........................................................ 282,891 148,086 119,747 28,339 85,311 27,897 14,833 6.764 1975—Nov. 30........................................................ 355,879 192,797 151,139 41,658 111,795 26,439 14,302 10;546 Dec. 31........................................................ 366,191 199,692 157,483 42,209 112,270 26,436 14,264 10,530 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—Nov. 30................................................ 19,582 2,866 237 2; 629 7,095 3,320 4,233 2,068 Dec. 31................................................ 19,347 2,769 207 2,562 7,058 3,283 4,233 2,053 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—Nov. 30................................................ 85,137 44,596 35,924 8,672 30,183 6,348 1,479 2,532 Dec. 31................................................ 87,934 46,845 38,018 8,827 30,518 6,463 1,507 2,601 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—Nov. 30................................................ 251,160 145,335 114,978 30,357 74,517 16,771 8,590 5,946 Dec. 31................................................ 255,860 150,078 119,258 30,820 74,694 16,690 8,524 5,876 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—Nov. 30......................................... 63,309 27,778 15,335 12,443 30,245 4,368 599 318 Dec. 31......................................... 64,398 29,875 17,481 12,394 29,629 4,071 552 271 Mutual savings banks: 1972—Dec. 31......................................... 2,609 590 309 281 1,152 469 274 124 1973—Dec. 31......................................... 1,955 562 222 340 750 211 300 131 1974—Dec. 31......................................... 1,477 399 207 192 614 174 202 88 1975—Nov. 30........................................ 3,183 876 458 418 1,499 451 234 124 Dec. 31........................................ 3,300 983 554 429 1,524 448 232 112 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—Nov. 30........................................ 7,105 1,827 1,317 510 2,235 1,487 1,155 401 Dec. 31........................................ 7,565 2,024 1,513 511 2,359 1,592 1,154 436 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—Nov. 30........................................ 9,258 7,090 5,866 1,224 1,854 188 84 41 Dec. 31........................................ 9,365 7,105 5,829 1,276 1,967 175 61 57 Savings and loan associations: 1972—Dec. 31......................................... 2,873 820 498 322 1,140 605 226 81 1973—Dec. 31......................................... 2,103 576 121 455 1,011 320 151 45 1974—Dec. 31......................................... 1,663 350 87 263 835 282 173 23 1975—Nov. 30........................................ 2,874 938 552 386 1,554 263 96 23 Dec. 31........................................ 2,793 914 518 396 1,558 216 82 22 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—Nov. 30........................................ 9,381 5; 459 4,686 773 1,807 736 817 561 Dec. 31......................................... 9,285 5,288 4,566 722 1,761 782 896 558 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—Nov. 30........................................ 156,049 101,367 86,765 14,602 35,323 9,278 5,604 4,477 Dec. 31.................................. 159,154 103,889 88,797 15,092 35,894 9,405 5,546 4,420 Note.—Direct public issues only. Based on Treasury Survey of banks, and 729 insurance companies combined, each about 90 per cent; Ownership. (2) 459 nonfinancial corporations and 486 savings and loan assns., each Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, about 50 per cent; and (3) 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) 5,547 commercial banks, 471 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 U.S. GOVERNMENT SECURITIES □ MARCH 1976 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 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 1,415 929 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 1,851 845 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 1,271 2,675 1,839 2,929 1,250 Nov................................. 7,594 5,519 1,353 534 189 1,070 2,176 1,875 2,474 1,217 Dec.................................. '7,586 '5,919 1,270 278 120 1,190 2,217 1,977 2,202 1,059 1976—Jan................................... 9,509 7,050 1,765 569 126 1,266 3,119 2,192 2,932 1,417 Week ending— 1976—Jan. 7......................... 10,345 8,034 1,918 263 130 1,285 3,745 2,463 2,853 1,268 14......................... 10,889 8,250 1,988 '519 132 1,512 3,626 2,542 3,209 '1,880 21......................... '9,135 '6,271 1,953 776 136 1,081 2,981 2,097 '2,976 '1.575 28......................... 7,919 5,794 1,426 605 95 '1,190 '2,347 1,674 '2,708 1,048 Feb. 4......................... 7,988 6,066 1,046 764 112 928 2,425 1 ,945 2,690 853 11......................... 8,986 6,074 1,708 1,061 143 976 2,776 2,195 3,039 1,084 18......................... 7,852 5,788 1,236 675 153 948 1,869 2,423 2,613 1,282 25......................... 8,896 6,195 1,947 544 209 1,085 2,444 2,420 2,946 1,177 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 ri­ W y i e t 1 a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e o i u e n v s r c t i . y ­ Period sou A r l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io r n p s o r 1 a­ o A th l e l r 1975—Jan................... 4,634 2,689 1,236 600 113 1,578 1975—Jan.............. 6,185 1,455 1,277 864 2,590 Feb.................. 5,588 3,658 1,180 536 213 1,469 Feb............. 6,295 1 ,672 1 ,077 714 2,832 Mar.................. 5,737 3,435 1,486 618 198 1,444 Mar............ 6,881 1,879 1,650 838 2,513 Apr.................. 4,453 3,123 1,036 218 77 937 Apr............. 5,696 1,655 1,326 583 2,132 May................. 6,332 4,917 1,094 248 73 896 May........... 6,656 1,684 1,567 452 2,953 June................. 6,768 5,923 748 100 -3 790 June........... 7,682 1,955 1,979 737 3,012 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 Sept................. 5,718 5,214 410 56 39 529 Sept............ 6,576 1,160 1,640 972 2,804 Oct................... 7,322 6,019 1,091 111 102 498 Oct.............. 6,940 1,658 1 ,792 817 2,673 Nov................. 6,752 5,011 640 594 506 953 Nov............ 7,215 1 ,958 1 ,393 991 2,873 Dec.................. 6,061 5,274 322 218 247 984 Dec............. 7,107 2,001 1,304 1,086 2,716 1976—Jan................... 6,305 5,287 449 398 170 695 1976—Jan.............. 6,766 1,757 1,337 1,147 2,526 Week ending— Week ending— 1975—Dec. 3 , , 6,181 5,225 372 320 263 1,060 1975—Dec. 3... 7,824 2,462 1,380 982 3,001 10......... 5,689 5,101 94 231 264 912 10... 7,163 1,976 1,277 1,161 2,749 17 6,700 6,256 71 134 240 842 17... 7,931 2,148 1,707 1,226 2,851 24......... 5,964 4,992 521 212 240 1,049 24... 6,695 1,986 1,113 1,091 2,506 31 5,785 4,635 666 245 239 1,125 31... '6,422 1,802 1,073 954 2,594 1976—Jan. 7 5,969 5,032 461 257 220 792 1976—Jan. 7... 6,541 1,514 1,313 1,138 2,576 14 7,551 6,541 440 367 202 720 14... 7,275 2,165 1,573 1,375 2,163 21 6,629 5,172 643 643 171 724 21... 7,266 1,881 1,762 1,172 2,451 28......... 5,372 4,562 350 340 120 600 28... 5,707 1,466 769 984 2,488 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

MARCH 1976 o FEDERALLY SPONSORED CREDIT AGENCIES A37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad­ Cash Mem­ Deben­ Loans Loans vances Invest­ and Bonds ber Capital Mort­ tures to and Mort­ to ments de­ and de­ Stock gage and cooper­ Bonds dis­ Bonds gage Bonds mem­ posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 1970 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973. 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974--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 Nov. . 17,606 4,439 87 18,874 2,527 2,690 31,647 29,319r 4,041 3,664 8,784 9,319 16,380 14,774 Dec... 17,845 4,376 109 ' 18,863 r 2,701 2,705 31,916 29,963 3,979 3,643 9,947 9,211 16,564 14,773 1976--Jan.. . 17,106 5,549 97 18,850 2,971 2,802 31,866 29,809 4,356 3,793 9,944 9,201 16,746 15,243 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table on preceding page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a . v S n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u on ­ 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 11,312 197 5 30,607 16,020 14,511 7,438 12,441 10,660 29.495 4,689 1,277 7,209 647 15,673 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. 3,586 1,371 2,209 1,577 1,063 941 3,554 400 123 879 37 2,115 Aug. 2,786 1,058 1,725 376 1,665 747 2,561 379 55 626 67 1,434 Sept. 2,171 907 1,252 357 1,185 614 2,123 279 134 447 48 1,215 Oct.. 2,337 1,120 1,203 482 979 855 2,241 212 60 487 44 1,438 Nov. 2,385 1,040 1,341 470 1,244 667 2,318 219 88 618 28 1,365 Dec.. 2,062 995 1,057 434 1,043 576 1,990 287 29 495 20 1,159 1976—Jan.. 2,249 1,064 1,174 639 1,014 588 2,188 416 95 559 88 1,030 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

A38 SECURITY ISSUES □ MARCH 1976 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 al Others Total Total P o u f b fe li r c e l d y P p ri l v a a c t e e d ly Preferred Common 1971. 105,233 17,235 16,283 24,370 2,165 44,914 31 ,999 24,790 7,209 3,679 9,236 1972. 96,522 17,080 12,825 23,070 1,589 40,787 27,727 18.347 9,378 3,373 9,689 1973. 100,417 19,057 23,883 22,700 1,385 33,391 22,268 13 ^ 649 8,620 3,372 7,750 1974. 37,837 31,551 25,337 6,214 2,253 4,033 1974—Nov., 3,746 3,346 3,016 330 93 307 Dec.. 3,505 3,052 2,172 880 152 301 1975—Jan.r. 5,365 4,792 3.657 1,135 235 338 Feb.r 4,528 3,906 3,201 705 173 449 Mar.1 5,378 4,481 3,971 510 253 644 Apr.r 4,294 3,194 2,771 423 349 751 May r 5,798 4,298 3,796 502 346 1,154 Juner 5,618 4,613 3,943 670 230 775 Julyr 390 3,733 2.658 1,075 198 459 Aug.7 396 1,833 1,356 477 129 434 Sept.1 838 2,002 1,414 588 308 528 Oct.r 619 3,072 2,389 683 332 1,215 Nov.. 965 3,182 1,666 1,516 440 343 Gross proceeds,, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd ea f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1971.............................................. 9,551 2,102 2,158 2,370 2,006 434 7,576 4,201 4,222 1,596 6,484 2,204 1972.............................................. 4,796 1,812 2,669 2,878 1,767 187 6,398 4,967 3,680 1,127 8,415 2,096 1973.............................................. 4,329 643 1,283 1,559 1,881 43 5,585 4,661 3,535 1,369 5,661 2,860 1974.............................................. 9,890 543 1,851 956 983 22 8,872 3,964 3,710 222 6,241 587 1974—Nov.................................... 1,697 2 116 100 336 739 225 62 31 397 44 Dec.. ....................... 1,456 196 180 23 14 435 194 150 25 817 15 1975_jan r................................. 1,901 3 179 58 84 764 507 933 5 931 Feb.r................................ 1,631 44 65 60 75 1,471 486 126 1 539 32 Mar.r ............................. 2,368 111 271 74 83 828 679 317 614 34 Apr r ............................... 1,498 233 294 211 97 794 586 354 61 156 9 May r................................. 2,266 384 242 141 415 i 845 704 153 260 379 10 June r 2,195 123 384 194 231 838 640 362 603 47 July r, ....................... 1,116 64 229 231 338 715 324 254 16 1,081 22 607 101 141 70 17 719 305 93 19 255 68 Sept r ............................. 591 106 57 37 151 720 541 249 48 234 105 Oct.r ............................... 759 142 325 152 626 562 676 373 555 427 23 Nov.................................... 873 229 53 68 1,000 848 420 40 10 368 57 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 preceding 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

MARCH 1976 o SECURITY ISSUES A39 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1971......................... 46,687 9,507 37,180 31,917 8,190 23,728 14,769 21,,232182 13,452 1972......................... 42,306 10,224 32,082 27,065 8,003 19,062 15,242 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—111................ 8,452 2,985 5,467 6,611 1,225 5,386 1,841 1,785696 82 IV................. 12,272 2,871 9,401 10,086 2,004 8,082 2,186 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 22,,131316 9,124 4,142 875 3,266 Ill................ 9,079 2,576 6,503 6,654 4,543 2,425 465 1,960 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate facturing and other 2 tation 3 utility cation and financial i Period Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 197 1 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 197 2 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 197 3 801 658 -109 1,411 1,044 --9230 4,265 4,509 3,165 1,399 3,523 1,181 197 4 7,404 17 1,116 -135 341 7,308 3,834 3,499 398 5,428 207 -6 222 88 1974—111 1,479 -421 189 -664 49 1,358 862 1,116 1,194 IV. 3,098 126 240 -47 342 9 2,079 1,107 628 107 1,695 17 1 1 1975— I. . 5,134 262 373 77 2,653 11,,856696 1,269 24 1,742 18 II. 4,574 500 422813 490 429 7 1,977 810 359 885626 43 Ill 1,442 412 108 147 53 1,395 1,043 472 97 247 21 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com­ 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 1 at end of period) Year Month Sales 2 Redemp­ Net Total 3 Cash Other Sales 2 Redemp­ Net Total 3 Cash Other tions sales position 4 tions sales position 4 1963............... 2,460 1,504 952 25,214 1,341 23,873 1975—Jan... 1,067 428 639 37,407 3,889 33,518 1964............... 3.404 1,875 1,528 29,116 1,329 27,787 Feb... 889 470 419 39,330 4,006 35,324 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Mar. . 847 623 224 40,449 3,870 36,579 Apr.. . 808 791 17 42,353 3,841 38,512 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 May.. 677 735 -58 43,832 3,879 39,953 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 June.. 703 811 -108 45,538 3,640 41 ,898 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 July... r813 1,052 -239 42,896 3,591 39,305 Aug... 753 788 -35 41,672 3,660 38,012 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Sept... 760 874 -114 40,234 3,664 36,570 1970............... 4,624 2,987 1,637 47,618 3,649 43,969 Oct. .. 914 995 -81 41,860 3,601 38,259 1971................ 5,145 4,751 394 55,045 3,038 52,007 Nov... 786 911 -125 42,460 3,733 38,727 Dec... 1,040 1 ,093 -53 42,179 3,748 38,431 1972................ 4,892 6,563 -1,671 59,831 3,035 56,796 1973................ 4,358 5,651 -1,261 46,518 4,002 42,516 1976—Jan... 411 538 -27 46,529 3,263 43,266 1974................ 5,346 3,937 1,409 35,777 5,637 30,140 1975................ 10,057 9,571 486 42,179 3,748 38,431 1 Beginning Jan. 1976, sales and redemption figures exclude money Note.—Investment Company Institute data based on reports of mem­ ma2r k In e c t l f u u d n e d s s c . ontractual and regular single-purchase sales, voluntary and b re e g rs is , te w re h d i ch w i c th o m th p e ri s S e e c s u u r b it s i t e a s n t a ia n l d ly E a x ll c h o a p n e g n e - e C nd o m in m v i e ss s i t o m n e . n t D c a o ta m p re a f n le ie c s t contractual accumulation plan sales, and reinvestment of investment in­ newly formed companies after their initial offering of securities. come dividends; excludes reinvestment of realized capital gains dividends. 43 Market value at end of period less current liabilities. 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

A40 BUSINESS FINANCE □ MARCH 1976 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1973 1974 1975 Industry 1972 1973 1974 III IV I II III IV I II' III Total (170 corps.): 371,946 442,254 563,950 108,370 120,985 126,797 142,974 144,936 149,243 138,245 145,753 147,853 Total revenue....................... 376,604 448,795 572,368 109,984 123,108 128,695 145,125 147,134 151,409 140,343 '147,662 149,687 Profits before taxes.............. 41,164 53,833 67,650 12,411 14,742 16,588 18,191 17,837 15,033 12,873 '14,812 15,425 Profits after taxes................. 21,753 28,772 32,502 6,762 7,750 7,739 9,280 8,420 7,068 5,538 '6,678 7,048 Memo: PAT unadj.1....... 21,233 28,804 32,705 6,732 7,930 7,626 9,210 8,487 7,383 5,662 6,566 7,031 10,538 11,513 12,302 2,767 3,393 2,906 2,928 3,076 3,390 3,129 '3,031 3,089 Nondurable goods industries (86 corps.):2 176,329 210,118 308,699 53,168 59,207 68,767 77,090 80,425 82,417 77,224 78,537 82,228 Total revenue....................... 178,915 213,904 314,256 54,098 60,357 70,049 78,552 81,905 83,746 78,548 '79,817 83,462 Profits before taxes.............. 21,799 30,200 46,380 7,610 8,988 11,880 11,972 12,595 9,930 9,357 '9,942 10,886 Profits after taxes................. 11,154 15.538 20,536 4,018 4,463 5,056 5,728 5,464 4,291 3,575 '3,890 4,424 10,859 15,421 20,433 3,957 4,517 4,957 5,677 5,389 4,411 3,567 3,870 4,423 Dividends............................. 5,780 6,103 6,872 1,527 1,633 1,625 1,645 1,722 1,882 1,816 '1,783 1,793 Durable goods industries (84 corps.):3 Sales...................................... 195,618 232,136 255,251 55,202 61,778 58,029 65,884 64,511 66,826 61,021 67,216 65,625 Total revenue....................... 197,690 234,891 258.112 55,886 62,751 58,646 66,573 65,229 67,663 61,795 '67,845 66,225 Profits before taxes.............. 19,365 23,633 21,271 4,801 5,754 4,708 6,219 5,242 5,102 3,516 '4,870 4,539 Profits after taxes................. 10,599 13,234 11,966 2,744 3,287 2,683 3,552 2,956 2,776 1 ,963 2,788 2,624 10,374 13,383 12,272 2,775 3,413 2,669 3,533 3,098 2,973 2,095 2,696 2,608 Dividends............................. 4,758 5,410 5,430 1,240 1,760 1 ,281 1,283 1,354 1,508 1,313 1,248 1,296 Selected industries: Food and kindred products (28 corps.): Sales...................................... 37,624 42,628 52,753 11,014 11,871 11,885 12,729 13,663 14,476 13,490 14,117 14,600 Total revenue....................... 38,091 43,198 53,728 11,201 11,938 12,110 12,996 13,939 14,683 13,708 '14,356 14,844 Profits before taxes.............. 3,573 3,957 4,603 1,031 1,067 1,046 1,190 1,289 1,077 1,066 '1,190 1,385 Profits after taxes................. 1,845 2,063 2,298 r546 543 529 607 645 517 502 '607 719 Memo: PAT unadj.1........ 1,805 2,074 2,328 r546 573 533 610 646 540 526 615 745 893 935 1,010 236 240 243 248 253 267 268 271 274 Chemical and allied products (22 corps.): Sales...................................... 36,638 43,208 55,084 10,828 11,534 12,507 13,892 14,606 14,078 13,618 14,329 14,660 Total revenue........................ 37,053 43,784 55,677 10,968 11,704 12,667 14,066 14,778 14,165 13,761 14,498 14,794 Profits before taxes.............. 4,853 6,266 8,264 1,599 1,572 1,856 2,293 2,194 1,920 1,641 1,622 1,858 Profits after taxes................. 2,672 3,504 4,875 901 883 1,044 1,247 1,223 1,362 925 929 1,034 Memo: PAT unadj.1....... 2,671 3,469 4,745 871 880 1,031 1 ,245 1,180 1 ,289 927 937 1,028 Dividends............................. 1,395 1,496 1,646 374 417 383 405 422 437 431 425 429 Petroleum refining (15 corps.): Sales...................................... 74,662 93,505 165,150 23,586 27,752 36,103 41,362 42,747 44,938 41,988 41,342 43,873 Total revenue....................... 76,133 95,722 168,680 23,988 28,584 36,913 42,261 43,659 45,847 42,851 42,100 44,633 Profits before taxes.............. 11,461 17,494 30,659 4,371 5,724 8,296 7,564 8,339 6,458 6,227 6,612 6,961 Profits after taxes............. 5,562 8,550 11,775 2,230 2,662 3,098 3,349 3,181 2,147 1,905 2,078 2,300 Memo: PAT unadj.1........ 5,325 8,505 11,747 2,192 2,688 3,011 3,304 3,132 2,299 1,871 2,040 2,268 2,992 3,147 3,635 789 832 864 853 899 1,019 966 '937 939 Primary metals and products (23 corps.): Sales...................................... 34,359 42,400 54,045 10,602 11,379 11,888 13,976 14,285 13,895 12,482 12,393 12,274 Total revenue....................... 34,797 43,104 55,049 10,764 11,715 12.045 14,171 14,504 14,328 12,782 '12,603 12,479 Profits before taxes.............. 1,969 3,221 5,580 799 919 '973 1,586 1,791 1,229 1,015 711 457 Profits after taxes................. 1,195 1,966 3,199 480 561 589 927 1,028 655 631 478 366 Memo: PAT unadj.1........ 1,109 2,039 3,485 496 608 607 942 1,137 799 639 485 381 Dividends............................. 653 789 965 184 227 221 209 238 297 273 227 223 Machinery (27 corps.): 55,615 65,041 73,452 16,306 17,871 16,830 18,836 18,853 18,935 18,245 19,881 19,764 Total revenue....................... 56,348 65,925 74,284 16,519 18,168 17,012 19,023 19,075 19,174 18,464 20,104 19,956 Profits before taxes.............. 6,358 7,669 7,643 1,936 2,149 1,829 2,074 1,943 1,797 1,727 2,089 2,219 Profits after taxes................. 3,522 4,236 4,213 1,069 1,200 1 ,006 1,149 1,074 985 971 1,178 1,224 Memo: PAT unadj.1........ 3,388 4,208 4,168 1,070 1,188 996 1 ,137 1,096 939 975 1,173 1,231 Dividends............................. 1,497 1,606 1,839 407 410 441 441 r476 481 483 485 519 Motor vehicles and equipment (9 corps.): Sales...................................... 70,653 83,016 80,386 17,959 21,186 18,467 20,979 19,443 21,497 18,863 22,275 21,005 Total revenue....................... 71,139 83,671 80,882 18,142 21,362 18,597 2.1 ,146 19,593 21,545 19,011 22,341 21,083 Profits before taxes.............. 6,955 7,429 2,919 729 1,280 636 1,115 231 938 -98 '854 590 3,626 3,992 1,686 431 709 369 657 133 527 -127 451 328 Memo: PAT unadj.1....... 3,640 4,078 1,742 450 763 361 648 147 586 -12 455 280 Dividends............................. 1,762 2,063 1,538 404 817 384 382 386 385 294 276 274 1 Profits after taxes unadjusted are as reported by the individual com­ of returns, allowances, and discounts, and exclude excise taxes paid di­ panies. 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

MARCH 1976 □ BUSINESS FINANCE A41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits In­ Profits Cash Undis­ Profits In­ Profits Cash Undis­ Year before come after divi­ tributed Quarter before come after divi­ tributed taxes taxes taxes dends profits taxes taxes taxes dends profits 1968......................... 85.6 39.3 46.2 21.9 24.2 1973—IV............... 119.1 48.6 70.5 29.5 41.0 1969......................... 83.5 39.7 43.8 22.6 21.2 1970......................... 71.5 34.5 37.0 22.9 14.1 1974_I................. 128.3 49.4 78.9 30.0 48.9 1971......................... 82.0 37.7 44. 3 23.0 21.3 II................ 129.6 52.6 77.1 30.9 46.2 ....................... 96.2 41.4 54.6 24.16972r 30.0 Ill.............. 146.7 59.3 87.4 31.7 55.7 1973r....................... 117.0 48.2 68.8 27.8 40.9 IV............... 123.9 49.2 74.7 31.7 43.0 1974r....................... 132.1 52.6 79.5 31.1 48.4 1975—1...............: 97.1 37.5 59.6 32.1 27.5 I I 108.2 41.6 66.6 32.6 34.0 II I 129.5 50.7 76.8 33.5 45.3 Note.—Dept, of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l ties U.S. Other U.S. Other taxes Govt.1 Govt.1 197 0 187.4 492.3 50.2 7.7 4.2 201 .9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 197 1 203.6 529.6 53.3 11 .0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 197 2 221.3 573.5 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 III 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 III 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 Ill 271.8 716.5 65.6 14.3 3.3 294.7 279.6 59.0 444.7 6.2 273.4 19.4 145.6 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 Period Total Durable du N r o a n bl ­ e Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other1 T ( A S o . . R A ta . . ) l 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972....................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973....................... 99.74 19.25 18.76 2.74 1.96 2.41 1.66 15.94 2.76 12.85 21.40 1974........................ 112.40 22.62 23.39 3.18 2.54 2.00 2.12 17.63 2.92 13.96 22.05 1974—1.................. 24.10 4.74 4.75 .68 .50 .47 .34 3.85 .52 3.19 5.05 107.27 II................ 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill............... 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV................ 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—1.................. 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 114.57 II................. 28.43 5.59 6.55 .97 .71 .47 .77 4.15 .79 3.22 5.19 112.46 Ill............... 27.79 5.16 6.51 .94 .62 .50 .85 4.16 .91 3.14 5.00 112.16 IV............... 30.74 5.99 7.30 .97 .62 .43 .93 4.85 .85 3.26 5.52 111.80 1976—12................ 26.56 4.94 6.12 .89 .49 .35 .67 4.41 .65 8.04 118.70 IP............... 30.19 5.65 7.19 .97 .51 .39 .82 5.01 .86 8.79 119.62 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

A42 REAL ESTATE CREDIT n MARCH 1976 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 1976 1971 1972 1973 IV I II III IV ALL HOLDERS............................................. r499,767 564,825 634,954 '688,652 '695,369 '709,553 '725,393 741,659 1- to 4-family................................................ '307,204 ••345,372 '384,738 '412,168 '415,607 '425,132 '436,511 447,583 Multifamily.................................................. '67,387 '76,667 '85,296 '91,222 '91,522 '92,133 '92,716 94,053 Commercial.................................................. 92,318 107,349 125,572 140,965 142,701 145,353 148,182 151,058 Farm............................................................. 32,858 35,437 39,348 44,297 45,539 46,935 '47,984 48,965 PRIVATE FINANCIAL INSTITUTIONS.. 394,239 450,000 505,400 542,552 546,689 558,179 569,499 580,314 1- to 4-family................................................ 253,581 288,018 320,420 340,007 342,313 350,198 358,275 365,608 Multifamily................................................... 52,472 59,398 64,750 68,161 68,095 68,453 68,931 69,579 Commercial.................................................. 78,330 92,063 108,735 121,948 123,684 126,634 129,263 131,939 Farm............................................................. 9,856 10,521 11,495 12,436 12,597 12,894 13,030 13,188 Commercial banks1...................................... 82,515 99,314 119,068 132,105 131,903 133,012 134,025 135,125 1- to 4-family............................................ 48,020 57,004 67,998 74,758 74,696 75,356 75,979 76,616 Multifamily............................................... 3,984 5,778 6,932 7,619 7,176 6,816 6,701 6,621 Commercial............................................... 26,306 31,751 38,696 43,679 43,924 44,598 45,032 45,537 Farm.......................................................... 4,205 4,781 5,442 6,049 6,107 6,242 6,313 6,351 61,978 67,556 73,230 74,920 75,157 75,796 76,429 77,127 1- to 4-family............................................ 38,641 41,650 44,246 44,670 44,795 45,175 45,552 45,968 14,386 15,490 16,843 17,234 17,291 17,433 17,579 17,739 8,901 10,354 12,084 12,956 12,996 13,112 13,221 13,343 50 62 57 60 75 76 77 77 Savings and loan associations...................... 174,250 206,182 231,733 249,293 252,442 261,336 '270,600 278,704 1- to 4-family............................................ 142,275 167,049 187,750 201,553 204,099 211,290 '218,780 225,332 Multifamily.............................................. 17,355 20,783 22,524 23,683 23,831 24,409 '24,895 25,362 Commercial.............................................. 14,620 18,350 21,459 24,057 24,512 25,637 '26,925 28,010 Life insurance companies............................. 75,496 76,948 81,369 86,234 87,187 88,035 '88,445 89,358 1- to 4-family............................................ 24,645 22,315 20,426 19,026 18,723 18,377 '17,964 17,692 Multifamily.............................................. 16,747 17,347 18,451 19,625 19,797 19,795 '19,756 19,857 28,503 31,608 36,496 41,256 42,252 43,287 '44,085 45,049 Farm......................................................... 5,601 5,678 5,996 6,327 6,415 6,576 '6,640 6,760 FEDERAL AND RELATED AGENCIES.. r39,366 45,790 55,664 '72,380 '76,010 '79,952 '84,522 89,073 1- to 4-family............................................... r26,4l6 '30,170 '35,579 '46,322 '48,455 '51,195 '54,697 58,436 Multifamily.................................................. *•4,601 '6,063 '8,364 '11,329 '11,995 '12,348 '12,753 12,992 Commercial.................................................. 11 Farm............................................................. 8,338 9,557 11,721 i4,729 15,560 16,409 17,072 17,645 Government National Mortgage Association.. '5,332 5,113 4,029 r4,846 '5,599 '5,610 r6,534 7,438 1- to 4-family............................................ '2,733 '2,513 '1,455 '2,248 '2,787 '2,787 '3,692 4,728 Multifamily.............................................. '2,588 '2,600 '2,574 '2,598 '2,812 '2,823 '2,842 2,710 Commercial.............................................. 11 819 837 1,200 1,600 1,700 1,800 1,900 2,000 1- to 4-family............................................ 398 387 550 734 780 826 872 918 Farm.......................................................... 421 450 650 866 920 974 1,028 1,082 Federal Housing and Veterans Administra­ tions ....................................................... 3,389 3,338 3,476 4,015 4,047 4,297 4,681 5,004 1- to 4-family............................................ 2,517 2,199 2,013 2,009 1,879 1,915 1,951 1,986 Multifamily............................................... 872 1,139 1,463 2,006 2,168 2,382 2,730 3,018 Federal National Mortgage Association.... 17,791 19,791 24,175 29,578 29,754 30,015 31,055 31,824 1- to 4-family............................................ 16,681 17,697 20,370 23,778 23,743 23,988 25,049 25,813 Multifamily............................................... 1,110 2,094 3,805 5,800 6,011 6,027 6,006 6,011 Federal land banks (farm only).................. 7,917 9,107 11,071 13,863 14,640 15,435 16,044 16,563 Federal Home Loan Mortgage Corporation. 964 1,789 2,604 4,586 4,608 4,944 5,033 4,987 1- to 4-family............................................ 934 1,754 2,446 4,217 4,231 4,543 4,632 4,588 Multifamily.............................................. 30 35 158 369 377 401 401 399 GNMA Pools................................................ 3,154 5,815 9,109 13,892 15,662 17,851 19,275 21,257 1- to 4-family............................................ 3,153 5,620 8,745 13,336 15,035 17,136 18,501 20,403 Multifamily.............................................. 1 195 364 556 627 715 774 854 INDIVIDUALS AND OTHERS2................ 66,162 69,035 73,890 73,720 '72,670 '71,422 '71,372 72,272 1- to 4-family................................................ 27,207 27,184 28,739 25,839 24,839 23,739 '23,539 23,539 Multifamily.................................................. 10,314 11,206 12,182 11,732 '11,432 '11,332 '11,032 11,482 Commercial.................................................. 13,977 15,286 16,837 19,017 19,017 18,719 '18,919 19,119 14,664 15,359 16,132 17,132 17,382 17,632 17,882 18,132 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

MARCH 1976 □ REAL ESTATE CREDIT A43 FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATION- SECONDARY MORTGAGE MARKET ACTIVITY (In millions of dollars) FNMA FHLMC Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage End of holdings transactions commitments holdings transactions commitments period (during period) (during period) Total i F su H in re A ­ d - a g n V u t A e a e r - - d chases Sales d p M u er r a i i d o n e d g st O i a n n u g d t­ ­ Total T ■T T V H V TT AA A A ­ t C i v o e o n n n a ­ ­ l c P ha u s r e ­ s Sales p d M e u r r a i i d o n e d g s O t i a n u n g t d ­ ­ 1971............. 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 182 1972............. 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,298 408 1,606 198 1973............. 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 186 1974............. 29,578 19,189 8,310 6,953 5 10,765 7,960 4,586 1,904 2,682 2,191 52 4,553 2,390 1975............. 31,824 19,732 9,573 4,263 1 6,106 4,126 4,987 1,824 3,163 1,716 1,020 982 111 1975—Jan... 29,670 19,231 8,318 208 146 7,285 4,744 1,900 2,845 199 26 26 2,190 Feb... 29,718 19,256 8,313 169 137 6,672 4,533 1,893 2,640 113 309 21 2,070 Mar.. 29,754 19,277 8,304 151 1 639 6,636 4,608 1 ,887 2,722 113 19 52 1 ,040 Apr... 29,815 19,282 8,337 211 913 6,890 4,634 1,890 2,744 121 71 297 1,161 May.. 29,858 19,251 8,395 247 621 6,615 4,773 1,920 2,854 203 38 42 969 June.. 30,015 19,282 8,498 326 557 6,549 4,944 1,936 3,008 210 5 28 700 July. . 30,351 19,385 8,693 538 575 6,119 5,015 1 ,943 3,072 161 63 139 530 Aug... 30,777 19,507 8,942 594 814 5,888 4,942 1,863 3,080 98 145 132 509 Sept... 31,055 19,560 9,122 488 575 5,399 5,033 1,852 3,181 148 31 79 403 Oct... 31,373 19,641 9,309 508 282 4,685 5,119 1,843 3,276 176 59 45 201 Nov... 31,552 19,648 9,430 372 332 4,385 4,971 1,834 3,137 104 225 50 124 Dec... 31,824 19,732 9,573 451 517 4,126 4,987 1,824 3,163 69 30 71 111 1976—Jan.. . 31,772 19,674 9,554 76 i 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. FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 1976 Sept. 22 Oct. 6 Oct. 20 Nov. 3 Nov. 17 Dec. 1 Dec. 15 Dec. 29 Jan. 12 Jan. 26 Feb. 9 Feb. 23 Amounts (millions of dollars): Govt.-underwritten loans Offered i................................ 293.6 198.5 43.2 69.8 . 293.1 255.9 287.1 95.3 58.4 103.9 252.2 126.9 Accepted............................... 142.0 143.0 23.2 41.7 180.6 138.5 158.8 52.7 31 .5 57.7 179.9 81.2 Conventional loans 68.8 27.5 9.7 19.6 68.6 73.9 69.7 41.8 42.7 33.4 57.8 44.0 35.2 23.5 9.2 15.2 34.6 40.5 31.2 11.8 32.1 24.7 36.9 23.3 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans........ 9.86 9.95 9.65 9.32 9.33 9.32 9.31 9.29 9.13 9.07 9.07 9.04 Conventional loans.................. 9.92 10.02 9.81 9.54 9.40 9.38 9.36 9.35 9.28 9.22 9.17 9.14 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 REAL ESTATE CREDIT o MARCH 1976 MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Holder 1974 1974 1974 1974 1975 1975 1975 136.7 137.8 138.6 140.3 142.0 143 0 144.9 FHA.............................................................. 85.0 84.9 84.1 84.1 84.3 85'.0 85.1 VA.................................................................. 51.7 52.9 54.5 56.2 57.7 58.0 59.8 Commercial banks......................................... 11.1 11.0 10.7 10.4 10.5 9.6 9.7 FHA.............................................................. 7.8 7.6 7.4 7.2 7.2 6.4 6 4 VA.................................................................. 3.3 3.4 3.3 3.2 3.3 3*2 3'.3 Mutual savings banks.................................... 28.2 27.9 27.8 27.5 27.2 27 2 27.0 FHA.............................................................. 15.3 15.1 15.0 14.8 14.7 14.7 14 5 VA.................................................................. 12.9 12.8 12.8 12.7 12.5 12.5 12! 5 Savings and loan assns.................................. FHA.............................................................. VA.................................................................. } 29.8 ) 29.7 } 29.9 } 29.9 1 29.9 } 30.2 30.4 Life insurance cos........................................... 13.3 13.1 12.9 12.7 12.5 12.2 12.1 FHA.............................................................. 9.0 8.8 8.7 8.6 8.4 8^2 8 1 VA.................................................................. 4.3 4.3 4.2 4.2 4.1 4 0 4.0 Others................................................................ 54.3 56.1 57.4 59.9 61 .6 62.2 65.7 FHA.............................................................. VA.................................................................. Note.—VA-guaranteed residential mortgage debt is for 1- to 4-family Detail by type of holder partly estimated by Federal Reserve for first properties while FHA-insured includes some debt in multifamily structures. and third quarters, and for most recent quarter. COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period o N f u l m oa b n e s r ( c m o ( a m d i m l o l m i l o o l u a i n t r n t s s e t ) d o f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r r n te a t c r t r e e e a n s 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 c a a i e n o l n - u t e ) C (p a t p e io r it n a c e l r i n z a t a t ) e ­ co D r v a e e t r b io a t ge P co e n r 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—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 July................. 53 178.6 3,370 10.19 20/7 74.6 10.9 1.31 11.3 Aug.................. 44 106.5 2,420 10.26 21/2 72.7 10.8 1.32 11.4 Sept................. 57 123.8 2,172 10.24 22/8 73.6 10.7 1.37 11.1 Note.—American Life Insurance Association data for new commitments to cases where information was available or estimates could be made: of $100,000 and over each on mortgages for multifamily and nonresidential capitalization rate (net stabilized property earnings divided by property nonfarm properties located largely in the United States. The 15 companies value); debt coverage ratio (net stabilized earnings divided by debt service); account for a little more than one-half of both the total assets and the and per cent constant (annual level payment, including principal and nonfarm mortgages held by all U.S. life insurance companies. Averages, interest, per $100 of debt). All statistics exclude construction loans, which are based on number of loans, vary in part with loan composition increases in existing loans in a company’s portfolio, reapprovals, and loans by type and location of property, type and purpose of loan, and loan secured by land only. amortization and prepayment terms. Data for the following are limited Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ REAL ESTATE CREDIT AND CONSUMER CREDIT A45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms i Yields (per cent) in insured primary market loans—Yield Period in private C ra o c te e n n t ( r t p a ) e c r t ( F p c e e h r e a s c r g e a n e n s t d ) 2 M (y a e tu ar r s it ) y L (p o e a r r n a t / c i p e o r n ic t) e pr o P i f c u e d r c o ( h l t l h a a o s r u e s) s. (t a d h m L o o l o u o la a s u r . n n s o ) t f F s H er L ie B s B 3 s H er U ie D s4 se m c a o r n k d e a t r 5 y 1971........................... 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972........................... 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 1973........................... 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 1974........................... 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 1975........................... 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 1975— Jan................. 9.09 1.51 26.7 73.8 43.2 31.6 9.33 9.15 8.99 Feb................. 8.88 1 .44 26.8 76.5 44.4 33.0 9.12 9.05 8.84 Mar................ 8.79 1.61 26.5 75.1 45.9 33.7 9.06 8.90 8.69 Apr................. 8.71 1 .53 26.5 76.4 44.5 33.4 8.96 9.00 May............... 8.63 1 .63 27.0 75.5 43.5 32.2 8.90 9.05 9.16 June............... 8.73 1.42 26.5 76.4 43.1 32.4 8.96 9.00 9.06 July................ 8.66 1 .40 26.0 75.9 44.1 32.9 8.89 9.00 9.13 Aug................ 8.63 1.56 26.7 77.0 44.6 33.7 8.89 9.15 9.32 Sept................ 8.70 1.46 26.7 75.9 45.6 34.1 8.94 9.25 9.74 Oct................. 8.75 1.59 27.3 77.5 43.9 33.2 9.01 9.25 9.53 Nov................ 8.74 1.65 27.6 76.5 46.4 34.8 9.01 9.20 9.41 Dec................. 8.74 1.65 27.8 76.9 45.9 34.7 9.01 9.15 9.32 1976—Jan .............. 8.75 1.70 27.4 77.1 47.1 35.5 9.01 9.05 9.06 1 Weighted averages based on probability sample survey of character­ (as shown in first column of this table) and an assumed prepayment at istics of mortgages originated by major institutional lender groups (in­ end of 10 years. cluding mortgage companies) for purchase of single-family homes, as 4 Rates on first mortgages, unweighted and rounded to the nearest compiled by Federal Home Loan Bank Board in cooperation with Federal 5 basis points. Deposit Insurance Corporation. Data are not strictly comparable with 5 Based on opinion reports submitted by field offices of prevailing earlier figures beginning Jan. 1973. local conditions as of the first of the succeeding month. Yields are derived 2 Fees and charges—related to principal mortgage amount—include from weighted averages of private secondary market prices for Sec. 203, loan commissions, fees, discounts, and other charges, but exclude closing 30-year mortgages with minimum downpayment and an assumed pre­ costs related solely to transfer of property ownership. payment at the end of 15 years. Any gaps in data are due to periods of 3 Effective rate, reflecting fees and charges as well as contract rates adjustment to changes in maximum permissible contract interest rates. 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 1974—Feb............ 10.53 11.25 12.82 13.02 17.24 12.33 16.62 Mar........... 10.50 10.92 12.82 13.04 17.23 12.29 16.69 13.15 18.69 20.53 Apr....... 10.51 11.07 12.81 13.00 17.25 12.28 16.76 May.......... 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.08 18.90 20.54 June...... 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July........... 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.22 19.25 20.74 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept........... 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.43 19.31 20.87 Oct............ 11.53 11.94 13.28 13.60 17.17 12.97 17.78 Nov........... 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 21 .11 Dec.......... 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan............ 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 21 .09 Feb........... 11.51 12.14 13.20 13.44 17.24 13.07 17.39 Mar........... 11 .46 11.66 13.07 13.40 17.15 13.07 17.52 13.59 20.00 20.82 ADr............ 11.44 11.78 13.22 13.55 17.17 13.07 17.58 Mfey.......... 11.39 11.57 13.11 13.41 17.21 13.09 17.65 13.57 19.63 20.72 June.......... 11.26 12.02 13.10 13.40 17.10 13.12 17.67 July........... 11 .30 11.94 13.13 13.49 17.15 13.09 17.69 13.78 19.87 20.93 Aug....... 11 .31 11.80 13.05 13.37 17.14 13.10 17.70 Sept........... 11.33 11.99 13.06 13.41 17.14 13.18 17.73 13.78 19.69 21 .16 Oct............ 11.24 12.05 13.00 13.38 17.11 13.15 17.79 Nov........... 11 .24 11.76 12.96 13.40 17.06 13.17 17.82 13.43 19.66 21.09 Dec 11.25 11.83 13.11 13.46 17.13 13.19 17.86 1976_jan 11.21 11.76 13.14 13.40 17.08 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

A46 CONSUMER CREDIT □ MARCH 1976 INSTALMENT CREDIT—TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 July Aug. Sept. Oct. Nov. Dec. Jan. Amounts outstanding (end of period) TOTAL...................................................... 148,273 158,101 161,819 155,419 156,765 157,720 158,390 159,200 161,819 160,745 By holder: Commercial banks............................. 71,871 75,846 75,710 74,232 74,701 75,024 75,286 75,174 75,710 75,342 37,243 38,925 38,932 38,177 38,340 38,375 38,411 38,642 38,932 38,737 19,609 22,116 25,354 23,507 24,043 24,510 24,706 24,934 25,354 25,250 Retailers1............................................ 16,395 17,933 18,328 15,963 16,172 16,232 16,444 16,860 18,328 17,771 Others2............................................... 3,155 3,281 3,495 3,540 3,509 3,579 3,543 3,590 3,495 3,645 By type of credit: Automobile, total............................... 51,274 52,209 53,629 52,088 52,545 52,852 53,286 53,479 53,629 53,318 Commercial banks......................... 31,502 30,994 30,198 29,923 30,000 30,031 30,259 30,235 30,198 29,862 Purchase......................................... 18,997 18,687 17,620 17,799 17,773 17,737 17,848 17,761 17,620 17,500 Direct.............................................. 12,505 12,306 12,578 12,124 12,227 12,294 12,411 12,474 12,578 12.363 Finance companies......................... 11,927 12,435 13,364 12,793 12,982 13,066 13,203 13,325 13,364 13,407 Credit unions................................. 7,456 8,414 9,653 8,945 9,149 9,329 9,403 9,491 9,653 9,612 389 366 414 427 414 426 421 428 414 437 Mobile homes: Commercial banks......................... 8,340 8,972 8,420 8,606 8,583 8,566 8,519 8,502 8,420 8,351 3,378 3,570 3,504 3,503 3,498 3,499 3,498 3,519 3,504 3,464 Home improvement, total................. 7,453 8,398 8,301 8,272 8,329 8,372 8,374 8,361 8,301 8,263 Commercial banks......................... 4,083 4,694 4,813 4,695 4,757 4,797 4,824 4,827 4,813 4,777 Revolving credit: Bank credit cards........................... 6,838 8,281 9,078 8,088 8,259 8,414 8,450 8,500 9,078 9,150 2,254 2,797 2,883 2,765 2,793 2,826 2,834 2,822 2,883 2,911 All other............................................. 68,736 73,874 76,004 72,096 72,757 73,192 73,430 74,018 76,004 75,287 Commercial banks, total............... 18,854 20,108 20,318 20,154 20,308 20,390 20,401 20,289 20,318 20,290 12,873 13,771 14,035 13,731 13,856 13,935 14,005 13,943 14,035 14,049 Finance companies, total.............. 21,021 21,927 21,465 21,103 21,119 21,104 21,037 21,158 21,465 21,279 16,587 17,176 17,179 16,845 16,868 16,858 16,822 16,942 17,179 17,035 11,564 13,037 14,937 13,855 14,170 14,443 14,559 14,692 14,937 14,878 16,395 17,933 18,328 15,963 16,172 16,232 16,444 16,860 18,328 17,771 902 869 956 1,021 988 1,022 989 1,019 956 1,069 Net change (during period)3 TOTAL...................................................... 20,826 9,824 3,719 886 637 759 830 805 894 1,295 By holder: Commercial banks............................. 11,002 3,971 -134 302 209 295 309 233 310 208 Finance companies............................ 5,155 1,682 7 197 21 95 36 157 34 260 Credit unions..................................... 2,696 2,507 3,237 316 291 428 255 270 471 387 1,632 1,538 395 -14 181 -107 258 84 125 185 Others................................................. 341 126 214 86 -65 49 -29 61 -44 254 By type of credit: 6,980 935 1,420 383 213 385 389 404 540 488 4,196 -508 -796 135 8 117 164 163 260 -44 Purchase......................................... 2,674 -310 -1,067 51 -95 6 76 33 48 40 Direct.............................................. 1,523 -199 272 83 103 111 88 130 213 -84 1,753 508 929 127 126 91 103 144 89 275 1,024 958 1,239 122 86 154 122 91 184 203 Other.............................................. 7 -23 48 -1 -7 23 1 5 6 54 Mobile homes: 1,933 634 -553 -32 -24 -17 -62 -6 -61 -26 Finance companies........................ 462 192 -66 -17 -11 -10 -7 26 -10 -28 Home improvement, total................ 1,196 946 -100 38 -4 19 -6 38 23 106 Commercial banks......................... 483 612 114 31 24 27 23 42 41 30 Revolving credit: 1,428 1,442 798 69 113 106 78 29 -49 107 Bank check credit.......................... 479 543 86 15 12 14 17 2 13 23 All other............................................. 8,344 5,141 2,133 430 338 262 420 312 440 625 2,479 1,257 213 84 76 48 89 2 107 118 Personal loans............................ 1,491 900 265 31 48 45 119 -6 149 100 Finance companies, total.............. 2,520 906 -462 115 -58 49 -27 20 -4 20 Personal loans............................ 1,675 589 -3 161 -38 59 -7 15 23 40 Credit unions................................. 1,591 1,473 1,900 185 189 260 127 173 274 173 Retailers.......................................... 1,632 1,538 395 -14 181 -107 258 84 125 185 Others............................................. 122 -33 87 60 -49 13 -28 33 -61 129 1 Excludes 30-day charge credit held by retailers, oil and gas companies, 3 Figures for all months are seasonally adjusted and equal extensions and travel and entertainment companies. minus liquidations (repayments, charge-offs, and other credits). 2 Mutual savings banks, savings and loan associations, and auto dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND REPAYMENTS (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 July Aug. Sept. Oct. Nov. Dec. Jan. Extensions1 TOTAL...................................................... 164,527 166,170 166,833 14,322 14,427 14,555 14,832 14,877 15,295 16,205 By holder: Commercial banks............................. 72,216 72,602 73,186 6,311 6,362 6,529 6,518 6,599 6,796 6,687 Finance companies............................ 43,221 41,809 39,543 3,423 3,387 3,459 3,412 3,712 3,530 4,231 21,143 22,403 24,151 2,098 2,056 2,156 2,187 1,995 2,381 2,253 Retailers2............................................ 25,440 27,034 27,369 2,208 2,479 2,164 2,531 2,302 2,431 2,578 Others3............................................... 2,507 2,322 2,584 282 144 247 183 268 158 456 By type of credit: Automobile, total.............................. 46,486 43,431 46,530 4,124 4,032 4,235 4,189 4,218 4,405 4,511 Commercial banks......................... 29,368 26,407 26,693 2,371 2,355 2,436 2,434 2,460 2,591 2,361 Purchase......................................... 17,497 15,515 14,758 1,304 1,264 1,301 1,333 1,310 1,450 1,314 Direct............................................. 11,871 10,831 11,936 1,067 1,091 1,135 1,101 1,150 1,141 1,047 9,685 8,851 9,651 868 805 865 836 831 897 987 Credit unions................................. 7,009 7,788 9,702 847 840 873 878 885 875 1,068 Others............................................. 424 385 484 38 31 61 41 42 42 95 Mobile homes: Commercial banks......................... 4,437 3,486 2,349 227 211 222 198 233 203 209 Finance companies........................ 1,673 1,627 1,018 81 82 83 81 97 88 79 Home improvement, total................. 4,828 4,854 4,333 395 363 388 392 409 418 459 2,489 2,790 2,515 222 219 224 238 243 253 231 Revolving credit: Bank credit cards........................... 13,862 17,098 19,567 1,618 1,689 1,737 1,698 1,752 1,719 1,840 Bank check credit.......................... 3,373 4,228 4,214 346 353 350 357 348 412 397 All other............................................. 89,864 91,455 88,818 7,531 7,697 7,539 7,915 7,819 8,051 8,711 Commercial banks, total............... 18,683 18,602 17,844 1,527 1,535 1,560 1,593 1 ,562 1,619 1,649 Personal loans............................ 12,927 13,177 12,623 1,026 1,083 1,105 1,144 1,076 1 ,178 1,145 Finance companies, total.............. 31,032 30,764 28,654 2,454 2,482 2,489 2,474 2,771 2,527 3,139 Personal loans............................ 18,915 18,827 18,406 1,621 1,653 1,624 1,613 1,674 1 ,513 1,980 Credit unions................................. 13,768 14,228 13,992 1,210 1 ,169 1,238 1,269 1,074 1,461 1,141 Retailers.......................................... 25,440 27,034 27,369 2,208 2,479 2,164 2,531 2,302 2,431 2,578 Others............................................. 941 827 959 132 32 89 48 111 14 204 Repayments1 TOTAL...................................................... 143,701 156,346 163,113 13,436 13,790 13,795 14,002 14,072 r14,403 14,910 By holder: Commercial banks............................. 61,214 68,631 73,320 6,009 6,153’ 6,234 6,209 6,367 r6,488 6,479 Finance companies............................ 38,066 40,127 39,536 3,227 3,366 3,364 3,376 3,555 3,496 3,971 Credit unions..................................... 18,447 19,896 20,914 1,782 1,764 1 ,728 1,932 1,725 1,910 1,866 23,808 25,496 26,974 2,222 2,298 2,271 2,273 2,218 2,306 2,393 Others3............................................... 2,166 2,196 2,370 196 208 198 212 208 202 202 By type of credit: Automobile, total............................... 39,506 42,496 45,110 3,741 3,818 3,849 3,800 3,814 3,865 4,023 Commercial banks......................... 25,172 26,915 27,489 2,236 2,347 2,319 2,271 2,297 2,331 2,405 Purchase......................................... 14,822 15,886 15,825 1,253 1,359 1,295 1,257 1,277 1,402 1,274 Direct.............................................. 10,348 11,028 11,663 984 988 1,024 1,013 1,020 928 1,131 7,932 8,343 8,722 740 679 773 733 687 808 712 Credit unions.................................. 5,985 6,830 8,463 725 755 719 756 794 691 865 417 408 436 39 38 38 40 37 36 41 Mobile homes:. Commercial banks......................... 2,504 2,852 2,902 259 235 239 260 239 r266 235 Finance companies......................... 1,211 1,435 1,084 98 93 94 88 72 98 107 Home improvement, total................. 3,632 3,908 4,434 357 367 369 398 371 395 353 Commercial banks......................... 2,006 2,178 2,400 191 195 197 214 202 212 201 Revolving credit: Bank credit cards 12,434 15,656 18,769 1,548 1,5*76 1,631 1,619 1,723 1,768 1,733 Bank check credit.......................... 2,894 3,685 4,128 331 341 336 340 346 399 374 All other............................................. 81,520 86,314 86,689 7,102 7,359 7,277 7,496 7,507 7,611 8,086 Commercial banks, total............... 16,204 17,345 17,635 1,443 1,459 1,512 1,504 1,560 1,512 1,531 Personal loans............................ 11,436 12,277 12,361 995 1,035 1,060 1,025 1 ,082 1,029 1,045 Finance companies, total.............. 28,512 29,858 29,116 2,339 2,540 2,440 2,501 2,751 2,531 3,119 Personal loans............................ 17,240 18,238 18,403 1,460 1,691 1,565' 1,620 1,659 1,490 1,940 12,177 12,755 12,092 1,025 981 978 1,142 901 1,187 968 Retailers.......................................... 23,808 25,496 26,974 2,222 2,298 2,271 2,273 2,218 2,306 2,393 Others............................................. 819 860 872 72 81 76 76 77 75 75 1 Monthly figures are seasonally adjusted. 3 Mutual savings banks, savings and loan associations, and auto dealers. 2 Excludes 30-day charge credit held by retailers, oil and gas companies, and travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 INDUSTRIAL PRODUCTION □ MARCH 1976 MARKET GROUPINGS (Seasonally adjusted, 1967 = 100) 1967 pro­ 1975 1976 por­ aver­ Grouping tion age Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec, Jan.?3 Feb.' Total index...................................... 100.0 113.8 111 .2 110.0 109.9 110.1 111.1 112.2 114.2 116.2 116.7 117.5 118.6 119.2 119.9 Products, total.................................... 62.21 115.7 113.7 112.4 112.9 113.4 114.2 115.3 115.8 116.9 116.9 117.9 119.5 120.6 120.9 Final products.................................. 48.95 115.5 113.3 112.2 112.6 113.7 114.5 115.7 115.9 116.9 117.0 117.9 119.3 120.5 120.7 Consumer goods......................... 28.53 124.1 118.8 118.2 119.6 121 .2 123.3 125.5 125.7 126.8 127.0 128.5 129.7 131 .6 132.6 Equipment................................... 20.42 103.6 105.3 103.9 103.0 102.9 102.2 102.2 102.3 102.8 102.6 102.6 103.7 104.2 104.2 Intermediate products................... 13.26 116.3 115.2 112.7 113.4 112.4 112.8 114.3 115.4 116.6 117.0 118.5 119.6 122.6 122.5 Materials.............................................. 37.79 110.5 107.4 105.9 105.2 104.9 106.0 106.8 111.5 115.1 116.5 116.7 117.0 117.6 118.5 Consumer goods Durable consumer goods.................... 7.86 112.6 101.0 103.1 107.8 110.5 113.2 115.9 116.1 118.3 118.3 118.8 119.8 121.8 123.2 Automotive products..................... 2.84 99.2 78.2 86.8 93.6 97.6 103.4 106.9 105.9 106.7 108.9 109.4 111.8 113.1 118.6 Autos............................................ 1.87 86.9 58.9 73.1 82.4 86.3 93.2 97.7 96.8 97.9 101 .2 100.0 100.1 99.2 105.1 Auto parts and allied goods... .97 122.8 115.5 113.2 115.2 119.3 122.8 124.8 123.2 123.5 123.9 127.3 134.1 139.7 140.0 Home goods.................................... 5.02 120.2 114.0 112.3 115.9 117.8 118.8 121 .0 121 .9 125.0 123.6 124.2 124.5 126.6 125.9 Appliances, TV, and radios . .. 1.41 101 .9 89.0 85.0 96.7 102.4 103.5 104.7 106.5 108.4 105.4 104.6 106.0 110.7 110.8 Appliances and A/C............. .92 118.4 104.8 99.1 114.2 118.4 118.3 118.9 122.2 124.1 123.4 122.8 123.5 129.3 TV and home audio.............. .49 70.8 Carpeting and furniture........... 1.08 133.8 132.3 127. 127. 128.6 131.1 135.5 136.0 137.6 137.9 139.3 137.1 139.1 Misc. home goods..................... 2.53 124.6 120.1 121.0 121.4 121 .7 122.1 124.0 124.5 129.0 127.4 128.7 129.5 130.4 129.7 Nondurable consumer goods............. 20.67 128.4 125.5 124.1 124.0 125.3 127.2 129.0 129.4 130.1 130.5 132.7 133.9 135.3 135.9 Clothing............................................ 4.32 98.7 94.5 90.9 89.2 94.4 97.7 101 .6 102.0 101.5 104.5 106.2 107.9 Consumer staples........................... 16.34 136.3 133.6 132.7 133.3 133.5 134.9 136.3 136.6 137.8 137.3 139.6 140.7 141 .6 142.1 Consumer foods and tobacco.. 8.37 125.3 123.2 120.7 122.7 122.4 124.1 125.5 125 126.4 127.2 130.0 131 .1 132.0 132.8 Nonfood staples......................... 7.98 147.8 144.5 145.3 144.3 145.3 146.4 147.7 148.0 149.9 148.1 150.1 151 .2 152.1 151.7 Consumer chemical products 2.64 161 .5 157.1 158.2 157.6 158.4 159.2 161 .2 160.4 161 .6 161 .7 167.9 169.1 170.2 Consumer paper products... 1.91 125.0 121.9 120.9 118.4 122.8 123.3 124.1 126.7 127.7 126.4 125.5 129.0 131 .5 Consumer fuel and lighting . 3.43 150.0 147.2 149.0 148.6 147.8 149.4 150.4 150.3 153.2 149.5 149.7 149.7 149.4 Residential utilities............ 2.25 161 .9 159.7 163.1 161.9 160.9 161.3 160.5 161 .1 164.8 160.1 161 .4 160.9 Equipment Business equipment............................. 12.74 116.6 119.3 117.0 115. 115.0 113.9 113.9 114.9 115.6 115.7 116.7 118.4 118.8 118.8 Industrial equipment..................... 6.77 116.7 120.4 118.8 116.4 115.3 114.0 113.3 113.4 114.5 115.4 116.7 118.6 119.3 118.9 Building and mining equip.. . . 1.45 133.6 137.0 137.7 132.3 131 .7 127.7 126.9 128.3 129.7 133.1 136.5 138.0 141 .2 142.0 Manufacturing equipment.... 3.85 105.9 109.4 106.6 105.6 105.0 104.3 105.5 105.1 104.5 104.0 103.6 104. 105.4 105.9 Power equipment....................... 1.47 128.2 132.1 131.8 128.9 126.2 125. 120.3 120.8 125.7 127.9 129.2 131 .3 132.5 132.5 Commercial, transit, farm equip.. 5.97 116.6 118.0 115.1 114.2 114.7 113.9 114.6 116.5 116.9 116.2 116.7 117.9 118.4 118.8 Commercial equipment............. 3.30 125.0 130.4 127.8 123.2 121 .5 120.7 123.0 123.4 122.6 123.3 123.3 124.9 125.3 125.5 Transit equipment..................... 2.00 98.0 91 .5 88.8 92.2 98.6 98.0 98.0 101 .5 105.0 100.4 101 .7 102.6 102.5 104.4 Farm equipment......................... .67 130.5 135.9 130.2 135.7 129.0 127.3 122.9 127.7 124.3 128.0 128.7 129.4 131.6 Defense and space equipment........... 7.68 82.0 82.4 82.1 82.4 82.7 82.9 82.6 81.4 81.6 81.1 79.3 79.7 80.2 80.3 Military products............................ 5.15 80.8 80.7 80.3 80.7 82.0 82.0 82.1 80.6 80.7 80.2 77.3 78.0 77.9 78.1 Intermediate products Construction products....................... 5.93 112.4 112.1 109.1 110.1 107.6 106.8 108.0 109.3 112.0 112.5 112.5 111 .6 115.4 116.0 Misc. intermediate products............. 7.34 119.7 118.4 115.6 116.1 116.2 117.5 119.3 120.3 120.3 120.7 123.4 126.0 128.4 Materials Durable goods materials.................... 20.91 106.5 107.0 104.7 101.6 100.2 99.8 100.3 106.1 108.7 110.1 110.6 111.2 112.6 113.0 Consumer durable parts............... 4.75 94.1 82.1 84.7 86.0 87.7 90.8 92.8 101 .7 103.0 102.4 102.7 104.5 105.9 106.4 Equipment parts............................. 5.41 106.3 112.0 108.7 104.6 102.1 97.3 96.8 100.7 102.4 105.2 106.9 108.4 108.8 109.0 Durable materials n.e.c................. 10.75 112.1 115.4 111.4 106.9 104.7 105.1 105.3 111.0 114.5 116.3 116.2 115.7 117.6 117.9 Nondurable goods materials.............. 13.99 114.9 105.7 105.3 107.9 109.5 112.3 114.0 118.2 123.4 125.0 125.0 125.6 126.3 126.9 Textile, paper, and chem. mat.. . 8.58 121.1 108.5 106.2 110.4 113.2 117.0 118.9 126.0 133.9 136.1 136.3 137.4 138.6 139.0 Nondurable materials n.e.c.......... 5.41 105.0 101.1 103.9 104.0 103.7 105.1 106.2 106.0 106.7 107.3 106.5 106.7 106.8 107.0 Fuel and power, industrial............... 2.89 118.7 118.2 118.0 117.5 118.0 119.5 121 .1 118.4 121.3 120.6 120.7 117.1 117.3 116.7 Supplementary groups Home goods and clothing................ 9.34 110.3 105.0 102.3 103.6 106.9 109.1 112.0 112.8 114.2 114.7 115.7 116.8 119.0 118.7 Containers............................................ 1.82 129.9 119.9 122.3 124.2 124.3 128.4 132.8 133.5 142.7 137.6 134.0 134.3 141 .9 Gross value of products in market structure (In billions of 1963 dollars) Products, total......................... 286.3 410.1 405.1 409.6 408.6 414.5 416.1 418.1 426.1 425.8 429.1 434.6 437.5 437.4 Final products......................... 221.4 317.7 315.3 319.0 319.4 325.0 325.2 326.3 332.9 333.7 336.5 339.6 340.9 342.2 Consumer goods.................. 156.3 213.7 213.2 217.6 217.8 223.6 224.9 225.4 230.8 231.7 235.1 237.0 237.9 240.3 Equipment............................. 65.3 103.9 102.2 101 .4 101 .5 101.3 100.5 100.9 102.3 101.7 101.5 102.2 103.4 102.3 Intermediate products............. 64.9 92.3 90.0 90.5 89.2 89.6 91.1 92.9 92.9 93.0 94.2 95.2 97.5 95.6 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INDUSTRIAL PRODUCTION A49 INDUSTRY GROUPINGS (Seasonally adjusted, 1967 = 100) 1967 pro­ 1974 1975 1976 Grouping p ti o o r n ­ a a v g e e r­ Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.* Feb.* Manufacturing...................................... 88.55 112.2 109.2 107.7 107.9 108.2 109.5 110.6 112.8 114.7 115.8 116.6 117.1 117.7 118.6 Durable............................................ 52.33 105.8 104.8 103.5 103.3 102.5 103.2 103.5 105.4 107.0 107.6 108.0 108.5 109.1 110.0 Nondurable...................................... 36.22 121 .5 115.6 113.7 114.8 116.1 118.6 120.8 123.4 125.7 127.2 128.8 130.0 130.6 131.1 11.45 127.5 127.3 128.8 128.1 126.5 126.8 127.4 127.0 127.8 127.0 127.6 127.3 127.8 127.1 6.37 106.5 108.6 108.9 108.5 105.9 106.3 106.4 105.0 105.3 106.4 106.6 104.2 104.9 102.7 Utilities............................................. 5.08 153.8 150.9 154.0 153.1 152.3 152.6 153.7 154.6 156.1 152.9 153.8 156.0 157.2 157.5 Durable manufactures Primary and fabricated metals............ 12.55 105.5 107.7 105.1 103.2 99.8 100.8 100.7 104.1 106.1 105.9 107.2 106.1 107.1 108.3 Primary metals................................. 6.61 97.2 102.1 98.1 95.0 89.9 91.8 92.8 96.5 97.2 97.0 98.2 95.3 97.0 98.1 Iron and steel, subtotal............... 4.23 96.1 105.0 103.1 99.4 90.1 88.7 87.0 90.4 91 .3 ‘93.2 96.0 92.2 93.3 94.5 Fabricated metal products.............. 5.94 114.8 113.7 112.9 112.4 100.9 110.9 109.7 112.7 116.1 115.9 117.3 118.1 118.3 119.3 Machinery and allied goods................. 32.44 104.0 102.4 101.5 101.9 101.7 102.3 102.4 103.7 105.0 105.8 106.2 107.2 107.0 107.8 Machinery......................................... 17.39 112.8 115.6 112.2 110.8 109.0 108.2 108.4 110.0 111 .7 112.9 114.2 115.2 115.5 115.8 Nonelectrical machinery.............. 9.17 118.6 123.6 119.3 116.9 113.7 112.3 112.9 115.1 116.7 117.7 119.2 119.9 120.3 120.5 Electrical machinery.................... 8.22 106.3 106.6 104.3 104.0 103.8 103.8 103.4 104.4 106.1 107.6 108.7 110.0 110.1 110.7 Transportation equipment.............. 9.29 88.3 77.1 81.0 84.7 87.6 90.5 91.0 92.9 94.3 94.7 94.0 95.4 94.1 96.2 Motor vehicles and parts............ 4.56 98.1 77.6 85.4 93.1 95.0 100.0 103.2 107.2 110.1 111 .0 109.4 110.3 109.2 113.8 Aerospace and misc. trans. eq... 4.73 79.0 76.6 76.7 76.6 80.4 81.3 79.3 79.1 79.2 79.0 79.3 81.0 79.5 78.7 Instruments....................................... 2.07 133.7 134.2 130.6 131.1 129.7 130.9 132.4 132.1 134.5 134.5 137.0 138.1 140.6 141.5 Ordnance, private and Govt........... 3.69 85.3 86.9 86.7 86.7 86.7 87.7 86.4 84.3 84.2 83.9 81.7 81.7 81.8 81.7 Lumber, clay, and glass....................... 4.44 109.2 104.6 102.6 104.8 105.9 107.0 108.3 110.6 113.1 114.4 112.5 113.9 118.7 119.2 Lumber and products..................... 1.65 109.9 99.6 99.8 104.1 108.0 110.3 112.0 114.5 115.5 116.8 115.1 116.8 120.1 Clay, glass, and stone products.... 2.79 108.8 107.8 104.2 105.4 104.7 105.1 106.2 108.3 111 .7 113.0 111 .2 112.2 117.8 Furniture and miscellaneous................. 2.90 121.5 119.6 118.7 117.6 119.7 120.1 121.2 123.1 124.3 124.6 123.1 124.3 124.6 126.2 Furniture and fixtures..................... 1.38 109.5 110.6 106.7 105.6 109.6 107.9 109.4 109.6 110.6 110.8 111 .0 112.3 113.5 Miscellaneous manufactures........... 1.52 132.4 128.0 129.7 128.5 129.0 131.1 131.8 135.3 136.7 137.2 133.8 135.1 134.9 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 97.9 89.6 87.5 90.4 93.2 94.9 97.4 100.2 104.0 106.0 108.4 109.6 109.7 110.1 Textile mill products....................... 2.69 109.8 93.3 96.8 100.4 103.8 106.9 110.7 115.0 121.2 123.2 125.2 125.7 125.1 Apparel products............................. 3.33 94.6 92.6 86.4 88.2 90.9 91.5 92.9 95.8 96.1 98.0 101 .4 104.1 Leather and products...................... .88 73.8 66.7 63.5 68.0 70.0 71.2 73.5 71.7 81.2 83.8 83.6 81.4 79.1 Paper and printing............................... 7.92 109.7 106.6 104.2 102.4 103.9 107.3 107.3 110.8 113.9 114.8 114.8 116.7 119.8 120.6 Paper and products............ 3.18 115.8 109.5 104.5 105.8 105.8 109.5 111 .7 116.4 124.0 127.0 127.3 129.0 131.4 4.74 105.5 104.7 104.0 100.2 102.6 105.9 104.4 107.1 107.1 106.5 106.2 108.6 112.2 112.0 Chemicals, petroleum, and rubber.... 11.92 140.4 132.4 130.2 131.0 132.5 136.2 140.2 143.6 146.2 148.5 150.2 151.3 150.6 150.3 Chemicals and products.................. 7.86 143.1 134.6 133.6 132.8 135.7 138.2 143.4 146.3 148.8 152.5 155.2 156.1 155.4 155.3 Petroleum products......................... 1.80 124.7 123.7 120.1 120.2 118.5 122.4 124.6 126.7 127.1 126.5 126.7 127.4 123.0 120.9 Rubber and plastics products......... 2.26 143.3 132.0 126.8 133.5 132.7 140.1 141.6 147.8 152.0 153.1 151.4 153.7 155.5 Foods and tobacco............................... 9.48 124.6 121.3 120.0 122.4 122.4 123.5 124.8 125.2 126.0 126.3 128.2 129.4 130.2 131.1 Foods................................................ 8.81 125.9 122.3 121.3 122.9 123.8 125.1 126.3 126.7 127.4 127.3 129.2 131.1 132.1 133.2 Tobacco products............................ .67 108.0 108.4 102.6 115.9 103.8 102.2 104.8 105.7 109.3 111 .9 113.8 104.6 Mining Metal, stone, and earth minerals......... 1.26 109.9 116.2 113.4 113.3 106.2 101.5 105.0 107.2 107.2 108.0 109.9 109.4 113.1 113.6 Metal mining................................... .51 121.7 131 .1 125.4 125.8 114.8 110.6 110.3 119.2 118.5 119.8 122.1 121.0 123.5 Stone and earth minerals................ .76 101 .8 106.1 105.1 104.7 100.4 95.3 101.4 98.9 99.5 100.0 101.7 101.4 106.0 Coal, oil, and gas................................. 5.11 105.7 106.8 107.7 107.4 105.8 107.6 106.7 104.4 104.8 106.1 105.9 103.0 102.9 100.2 .69 114.0 117.5 117.4 112.2 113.6 120.4 120.6 105.7 113.6 114.6 119.8 104.5 107.2 103.1 Oil and gas extraction..................... 4.42 104.4 105.0 106.1 106.6 104.5 105.5 104.5 104.2 103.4 104.8 103.8 102.6 102.2 99.6 Utilities Electric................................................. 3.90 164.9 161.1 165.4 164.1 163.0 163.3 164.7 165.8 167.8 163.4 164.9 167.8 floe 1.17 117.1 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

A50 BUSINESS ACTIVITY; CONSTRUCTION □ MARCH 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ facturing2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Period Products tion struc­ tural Total Whole­ in mfg. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales3 sumer com­ Mate­ Manu­ output tracts ment— ment modity Inter­ rials factur­ = 100) Total i Con­ Equip­ mediate ing Total sumer ment goods 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64. 71.3 56.4 71.0 66.4 65.4 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 196 1 66.7 66.9 65.3 72. 55.6 72.4 66.4 65.6 77.6 70.2 82.1 84.5 68.0 70 89.6 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 78.1 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 90 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105. 105. 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 119 116.3 110.4 197 1 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 130 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 197 3 125.6 123.4 121 .3 131 .7 106.7 131 .1 129.3 125.2 83.0 179.7 116.8 103.2 149.2 160 133.1 134.7 197 4 124.8 123.1 121 .7 128.8 111 .7 128.3 127.4 124.4 78.9 168.6 119.1 102.1 157.1 171 147.7 160.1 197 5 113.8 115.7 115.5 124.1 103.6 116.3 110.5 112.2 116.9 91.4 151.0 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 .2 113.7 113.3 118.8 105.3 115.2 107.4 109.2 139.0 116.6 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 .2 102.9 112.4 104.9 108.2 182.0 116.2 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. 114.2 115.8 115.9 125.7 102.3 115.4 111 .5 112.8 208.0 116.9 90.9 154.2 191 162.8 176.7 Sept. 116.2 116.9 116.9 126. 102.8 116.6 115.1 114.7 157.0 117.4 92.0 157.0 189 163.6 177.7 Oct.. 116.7 116.9 117.0 127.0 102.6 117.0 116.5 115.8 166.0 117.8 92.5 158.4 192 164.6 178.9 Nov. 117.5 117.9 117.9 128.5 102.6 118.5 116.7 116.6. 148.0 117.8 92.4 158.9 192 165.6 178.2 Dec. 118.6 119.5 119.3 129.7 103.7 119.6 117.0 117.1 137.0 118.1 93.0 162.3 198 166.3 178.7 1976—Jan.r 119.2 120.6 120.5 131.6 104.2 122.6 117.6 117.7 183.0 118.6 94.0 165.7 197 166.7 179.4 Feb.. 119.9 120.9 120.7 132.6 104.2 122.5 118.5 118.6 119.0 94.4 165.0 179.4 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) 1975 1976 Type of ownership and 1973 1974r type of construction Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. rotal construction contracts 1........ 99,304 93,685 5,100 4,955 6,574 9,598 9,143 9,324 9,04410,037 7,692 7,767 5,573 5,431 6,390 By type of ownership: 26,563 32,062 2,254 2,031 2,182 2,768 2,875 3,891 3,784 3,040 2,725 2,544 1,597 1,724 1,655 Private i.................................... 72,741 61,623 2,846 2,924 4,393 6,830 6,268 5,432 5,260 6,997 4,967 5,223 3,976 3,708 4,734 By type of construction: Residential building 1.............. 45,696 33,567 1,562 1,583 2,316 3,029 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233 2,157 Nonresidential building........... 31,534 33,131 2,233 2,199 2,402 2,987 2,877 3,169 3,165 2,666 2,526 2,629 1,859 1,865 1,939 Nonbuilding............................. 22,074 26,987 1,305 1,172 1,856 3,582 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334 2,294 Private housing units authorized... 1,820 1,074 689 701 677 837 912 949 1,042 995 1,095 1,079 1,085 rl ,028 1,138 (In thousands, S.A A.R.) 1 Because of improved procedures for collecting data for 1 -family homes, Note.—Dollar value of construction contracts as reported by the some totals are not strictly comparable with those prior to 1968. To im­ McGraw-Hill Informations Systems Company, F.W. Dodge Division. prove comparability, earlier levels may be raised by approximately 3 per Totals of monthly data may differ from annual totals because adjustments cent for total and private construction, in each case, and by 8 per cent for are made in accumulated monthly data after original figures have been residential building. published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 2 Nonresidential Conser­ Period Total Total d R en es ti i a ­ l Total In tr d ia u l s­ B m u C e i o l r d m c i i n a ­ g l s b O u t i h l e d r ­ P O U i a u t t n i b t h e i d l e l s i ­ r c Total M ta i r l y i­ H w ig ay h­ de v m v a a e n t e i l d n o o t n p­ Other ings 1 1967r............................ 78,082 52,546 25,564 26,982 25,536 695 8,591 2,124 14,126 1968 r............................ 87,093 59,488 30,565 28,923 6,021 7,761 4,382 10,759 27,605 808 9,321 1,973 15,503 1969r............................ 93,917 65,953 33,200 32,753 6,783 9,401 4,971 11,598 27,964 879 9,250 1,783 16,052 1970'............................ 94,855 66,759 31,864 34,895 6,-518 9,754 5,125 13,498 28,096 718 9,981 1,908 15,489 1971.............................. 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 1972'............................ 124,085 93,901 54,288 39,613 4,676 13,464 5,898 15,575 30,184 1,087 10,429 2,172 16,496 1973 r........................... 135,953 103,444 57,635 45,809 6,243 15,453 5,888 18,225 32,509 1,170 10,506 2,313 18,520 1974'............................ 135,481 97,079 47,044 50,035 7,902 15,945 5,797 20,391 38,402 1,185 12,083 2,782 22,352 1975.............................. 130,779 89,897 42,880 47,017 7,847 12,810 5,587 20,773 40,882 1975—Jan.................... 132,274 91,169 39,556 51,613 8,412 15,646 5,903 21,652 41,105 1,223 12,356 2,842 24,684 Feb.................... 128,862 89,023 38,523 50,500 8,724 14,971 5,883 20,922 39,839 1,319 11,993 3,329 23,198 Mar................... 125,501 85,687 37,999 47,688 7,869 13,032 5.363 21,424 39,814 1,337 11,377 3,024 24,076 Apr.................... 121,027 84,742 37,574 47,168 7,500 12,765 5,636 21,267 36,285 1,473 10,963 2,769 21,080 May................... 121,698 84,252 38,531 45,721 8,197 12,109 5,268 20,147 37,446 1,180 12,227 3,132 20,907 June.................. 126,884 84,982 40,431 44,551 7,677 11,756 5,415 19,703 41,902 1,120 12,538 3,481 24,763 July................... 128,776 88,143 43,330 44,813 7,714 11,978 5,319 19,802 40,633 1,309 12,536 3,417 23,371 Aug................... 132,101 90,590 45,354 45,236 7,621 12,586 5,611 19,418 41,511 1,383 13,164 3,387 23,577 Sept................... 137,102 92,524 45,972 46,552 7,889 12,431 5,843 20,389 44,578 1,662 14,152 3,442 25,322 Oct.................... 135,636 93,250 46,492 46,758 7,470 12,506 5,589 21,193 42,386 1,493 14,076 3,194 23,623 Nov................... 137,791 95,773 47,536 48,237 7,750 12,634 5,771 22,082 42,018 1,661 14,413 3,569 22,375 Dec.................... 139,647 96,182 48,479 47,703 7,548 12,401 5,611 22,143 43,465 1,616 1976—Jan. . 139,820 96,026 48,602 47,424 7,265 11,586 5,688 22,885 43,794 1,604 1 Includes religious, educational, hospital, institutional, and other build- Note.—Census Bureau data; monthly series at seasonally adjusted ings. annual rates. 2 By type of ownership, State and local accounted for 86 per cent of public construction expenditures in 1974. PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale 1 Units Median prices (in thousands Mobile of dollars) of Period home units 1- 2-or- 1- 2-or- 1- 2-or- ship­ Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale per­ iod) 1966......................................... 1,165 779 386 217 461 196 21.4 22.8 1967......................................... 1,292 844 448 240 487 190 22.7 23.6 1968........................................ 1,508 899 608 1,320 859 46 i 318 490 218 24.7 24.6 1969........................................ 1,467 811 656 1,399 807 591 885 350 535 413 448 228 25.6 27.0 1970........................................ 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 1971........................................ 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 1972........................................ 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 27.6 28.3 1973........................................ 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 1974........................................ 1,338 888 450 1,692 931 760 1,189 516 673 r329 501 407 35.9 36.2 1975........................................ 1,161 892 268 1,292 865 428 1,023 535 488 216 545 383 39.2 1975—Jan.r........................... 1,005 748 257 1,535 964 571 1,188 529 660 185 404 404 37.2 36.4 Feb.'........................... 953 722 231 1,320 770 550 1,156 525 631 219 411 409 37.9 36.6 Mar.r.......................... 986 763 223 1,305 734 571 1,118 521 598 199 463 396 38.8 36.5 Apr.r........................... 982 774 208 1,211 756 455 1,087 515 573 194 570 388 39.2 36.7 Mayr........................... 1,085 853 232 1,276 832 444 1,060 513 546 224 586 383 39.5 36.9 Juner........................... 1,080 874 206 1,165 785 380 1,045 517 528 210 556 378 37.9 37.2 July r........................... 1,207 916 291 1,269 901 368 1,039 521 518 225 553 383 38.6 37.4 Aug.r.......................... 1,264 979 285 1,267 881 386 1,036 528 507 235 576 379 38.2 37.8 Sept.r.......................... 1,304 966 338 1,291 969 322 1,037 532 505 215 569 383 39.7 38.2 Oct.r........................... 1,431 1,093 338 1,118 741 377 1,061 560 504 229 596 388 40.7 Nov............................. 1,381 1,048 333 1,445 1,016 429 1,051 556 495 232 664 379 41.1 Dec.............................. 1,291 966 325 1,291 982 309 1,059 563 496 228 645 379 42.4 1976—Jan.?........................... 1,221 958 263 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

A52 EMPLOYMENT o MARCH 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a t u .S u l l t . a n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f a S o o b . r A t c o a e . r l ) Total Total E In m c n u p o lt l n u o a r y g a e l r d i- 1 In U pl n o e y m ed ­ U (p n e e m r S a r m . e A t c e n p e . 2 l t ) n o t y ; ­ agriculture industries 1970.......................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 r79,119 75,732 3,387 r4,994 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973........................... 148,263 57,222 r91,042 88,716 r84,410 80,957 r3,453 r4,306 4.9 1974........................... 150,827 57,587 93,240 91,011 85,935 82,443 3,492 5,076 5.6 1975........................... 153,449 58,655 94,793 92,613 84,784 81,403 3,381 7,830 8.5 1975—Feb. r............. 152,445 59,333 93,721 91,523 84,163 80,911 3,352 7,360 8.0 Mar.r............ 152,646 59,053 94,078 91,880 84,110 80,842 3,268 7,770 8.5 Apr. r............. 152,840 59,276 94,449 92,254 84,313 81,012 3,301 7,941 8.6 May r............. 153,051 59,101 94,950 92,769 84,519 80,991 3,528 8,250 8.9 Juner............. 153,278 57,087 94,747 92,569 84,498 81,148 3,350 8,071 8.7 July'............. 153,585 56,540 95,249 93,063 84,967 81,528 3,439 8,096 8.7 Aug. r............ 153,824 57,331 95,397 93,212 85,288 81,824 3,464 7,924 8.5 Sept.r............ 154,052 59,087 95,298 93,128 85,158 81,646 3,512 7,970 8.6 Oct.r............. 154,256 58,825 95,377 93,213 85,151 81,743 3,408 8,062 8.6 Nov.r............ 154,476 59,533 95,272 93,117 85,178 81,877 3,301 7,939 8.5 Dec.r............. 154,700 59,812 95,286 93,129 85,394 82,158 3,236 7,735 8.3 1976—Jan................. 154,915 60,110 95,624 93,484 86,194 82,851 3,343 7,290 7.8 Feb................. 155,106 60,163 95,601 93,455 86,319 83,149 3,170 7,136 7.6 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ Tr ti a p o n u n s b p l a i o n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973.......................................................... 76,896 20,068 644 4,015 4,644 16,674 4,091 13,021 13,739 1974.......................................................... 78,413 20,046 694 3,957 4,696 17,017 4,208 13,617 14,177 1975......................................................... 76,987 18,342 745 3,462 4,499 16,949 4,473 13,996 14,771 seasonally adjusted 1975—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................................................ 77,555 18,493 774 3,402 4,476 17,043 4,246 14,157 14,964 Nov............................................... 77,574 18,482 766 3,409 4,496 17,010 4,248 14,188 14,975 Dec............................................... 77,796 18,568 769 3,406 4,477 17,080 4,264 14,229 15,003 1976—Jan.*............................................. 78,137 18,724 760 3,434 4,490 17,211 4,269 14,284 14,965 Feb.*............................................ 78,344 18,766 762 3,375 4,518 17,308 4,268 14,354 14,993 not seasonally adjusted 1975—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 ie>;8i9 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 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................................................ 78,193 18,687 763 3,620 4,503 17,136 4,238 14,185 15,061 Nov............................................... 78,339 18,635 763 3,522 4,509 17,313 4,235 14,174 15,188 Dec............................................... 78,527 18,584 763 3,338 4,477 17,737 4,243 14,158 15,227 1976—Jan.*............................................. 77,045 18,492 752 3,067 4,436 17,004 4,226 14,027 15,041 Feb.*............................................ 77,316 18,549 759 3,014 4,446 16,908 4,230 14,182 15,236 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 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o u n i a e d l l l tr e G a i l c n e a i c d s t ­ y o n F i p a n i n e u s g r d h r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s P c o a e n r r a e ­ l r R e a i c e n n r a g e d d a ­ ­ g O s a o e t n o h rv d d e ­ s r tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 U3.4 109.3 108.7 109.1 1970.......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971......................... 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972......................... 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973......................... 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974......................... 147.7 161.7 150.6 r130.6 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1975 ......................... 161 .2 175.4 166.8 137.3 181 .7 235.3 169.6 158.1 142.3 150.6 153.5 168.6 150.7 144.4 147.4 1975—Jan................ 156.1 170.9 161 .2 134.0 175.6 228.9 160.2 153.2 139.4 143.2 148.9 161 .0 146.5 141 .0 144.8 Feb................ 157.2 171.6 162.7 135.1 177.3 229.5 162.7 154.7 140.2 143.5 150.2 163.0 147.8 141.8 145.9 Mar............... 157.8 171.3 163.6 135.5 178.2 228.3 164.0 155.6 140.9 144.8 151.1 164.6 148.9 142.0 146.5 Apr............... 158.6 171 .2 164.7 135.9 179.4 229.0 166.3 156.8 141 .3 146.2 152.1 165.8 149.5 143.5 146.8 May.............. 159.3 171 .8 165.3 136.4 180.1 230.2 167.3 157.4 141 .8 147.4 152.6 166.8 149.9 143.8 147.1 June.............. 160.6 174.4 166.4 136.9 181 .4 230.6 169.4 158.1 141 .4 149.8 153.2 168.1 150.3 144.1 147.3 July............... 162.3 178.6 167.1 137.3 182.3 234.1 170.4 158.3 141.1 152.6 154.0 169.8 151.2 144.4 147.6 Aug............... 162.8 178.1 167.7 138.0 182.8 235.7 171.2 158.8 142.3 153.6 154.6 170.9 151.4 144.7 148.1 Sept............... 163.6 177.8 168.9 138.4 183.9 238.7 174.0 160.1 143.5 155.4 155.4 172.2 152.1 146.0 148.0 Oct................ 164.6 179.0 169.8 139.3 184.8 243.3 174.2 160.9 144.6 156.1 156.3 173.5 152.9 146.6 148.5 Nov............... 165.6 179.8 171.3 139.9 186.8 246.5 176.8 161.6 145.5 157.4 156.5 173.3 153.6 147.0 148.9 Dec............... 166.3 180.7 172.2 140.6 187.8 248.7 179.0 162.0 145.2 157.6 157.5 174.7 154.6 147.5 149.8 1976—Jan................ 166.7 180.8 173.2 141.2 188.8 248.9 179.5 163.7 143.3 158.1 158.6 176.6 155.7 148.2 150.5 Note.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro­ Period m c t o i o e m d s i ­ ­ p F u r a c o r t m d s ­ c f f e o a e s n o e s d d d e s d s t T e il e t e c x s . ­ , H e i t d c e . s F e u tc e . l, C ic e h a t e c l m s . , ­ R b et u e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n r u i y a d n i ­ p ­ ­ F t e u u t r r c e n . , i­ N t e m m a r l o a i l e n l i n ­ s c ­ ­ T e p m t q r o i a o e u r n n n i t p a s t ­ 1 ­ ­ n c M e e o l i l u s a ­ s ­ ment 1960........... 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 93.0 196 5 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 95.9 196 6 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 97.7 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 196 9 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 197 0 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 197 1 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 197 2 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 197 3 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 197 4 160. 1 187.7 170.9 153.8 139.1 145. I 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133. 1 197 5 174.9 186.7 182.6 171.5 137.9 148.5 245.1 181.3 150.2 176.9 170.4 185.6 161.4 139.7 174.0 141.5 147.7 1975—Feb. 171 .3 <74.6 182.6 168.4 136.5 141 .7 232.3 178.1 150.0 169.3 169.8 186.3 157.7 139.1 170.3 138.2 146.4 Mar. 170.4 171.1 177.3 168.9 134.3 143.2 233.0 181.8 149.7 169.6 170.0 186.1 158.8 138.5 170.8 139.5 146.8 Apr. 172.1 177.7 179.4 169.7 134.4 147.5 236.5 182.4 149.4 174.9 169.7 185.7 159.7 138.5 173.0 139.9 147.3 May 173.2 184.5 179.0 170.3 135.2 147.7 238.8 182.1 148.9 183.0 169.8 185.1 160.4 138.6 173.1 139.9 147.5 June 173.7 186.2 179.7 170.7 135.9 148.7 243.0 181 .2 148.6 181 .0 169.8 184.5 161 .0 139.0 173.3 140.1 147.5 July. 175.7 193.7 184.6 171 .2 136.8 149.3 246.6 181 .4 150.1 179.6 170.0 183.4 161 .7 139.2 174.7 140.1 147.7 Aug. 176.7 193.2 186.3 172.2 137.6 149.3 252.4 182.1 150.0 179.7 170.0 184.3 162.2 139.8 175.8 140.5 147.8 Sept. 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 Oct. 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 Nov, 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 Dec. 178.7 193.8 181.0 176.1 144.0 154.6 258.0 183.4 151.9 183.1 173.1 187.1 165.8 142.0 178.0 147.5 151.1 1976—Jan.. 179.4 192.8 179.4 177.3 145.1 157.5 257.3 184.2 152.4 190.5 174.8 188. 1 167.0 143. 1 181.1 148.7 151.8 Feb. 179.4 191.0 176.4 178.1 146.3 159.9 255.7 184.9 154.2 196.0 175.8 189.8 167.7 143.4 181.3 148.8 152.1 1 Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME □ MARCH 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1974 1975 Item 1950 1970 1972 1973 1974 1975 IV I II III IV Gross national product........................................................... 286.2 982.4 1,171.1 1,306.3 1,406.9 1,498.8 1,441.3 1,433.6 1,460.6 1,528.5 1,572.5 Final purchases......................................................................... 279.4 978.6 1,161.7 1,288.8 1,397.2 1,513.4 1,430.9 1,458.4 1,490.2 1,530.6 1,574.4 Personal consumption expenditures..................................... 192.0 618.8 733.0 808.5 885.9 963.8 908.4 926.4 950.3 911. A1,001.0 Durable goods..................................................................... 30.8 84.9 111.2 122.9 121.9 128.1 117.3 118.9 123.8 131.8 137.6 Nondurable goods............................................................. 98.2 264.7 299.3 334.4 375.7 409.8 387.1 394.1 404.8 416.4 423.7 63.0 269.1 322.4 351.3 388.3 426.0 404.0 413.4 421.6 429.2 439.7 Gross private domestic investment....................................... 53.8 140.8 188.3 220.5 212.2 182.6 210.3 168.7 161.4 194.9 205.4 Fixed investment................................................................. 47.0 137.0 117186..88 203.0 202.5 197.3 199.8 193.5 191.1 197.1 207.4 Nonresidential.................................................................. 27.1 100.5 136.5 147.9 148.5 151.1 149.3 146.1 146.7 151.9 Structures..................................................................... 9.3 37.7 42.5 49.0 54.4 52.7 50.1 54.9 51.1 51.2 53.6 Producers’ durable equipment................................ 17.8 62.8 74.3 87.5 93.5 95.8 95.0 94.4 95.0 95.6 98.3 Residential structures..................................................... 19.9 36.6 62.0 66.5 54.6 48.7 48.7 44.2 45.0 50.4 55.4 Nonfarm....................................................................... 18.7 35.1 60.3 64.7 52.2 46.8 46.3 42.6 43.1 48.2 53.3 Change in business inventories........................................ 6.8 3.8 9.4 17.5 9.7 -14.6 10.4 -24.8 -29.6 -2.1 -2.0 Nonfarm........................................................................... 6.0 3.7 8.8 14.1 11.6 -16.5 13.7 -23.3 -29.6 -5.7 -7.5 Net exports of goods and services........................................ 1.9 3.9 -3.3 7.4 7.7 21.2 8.2 17.3 24.2 22.1 21.2 Exports.................................................................................. 13.9 62.5 72*7 101.5 144.2 147.7 153.6 148.2 140.7 148.5 153.5 Imports.................................................................................. 12.0 58.5 75.9 94.2 136.5 126.5 145.3 130.9 116.4 126.4 132.2 Government purchases of goods and services..................... 38.5 218.9 215032..11 216092..90 301.1 331.2 314.4 321.2 324.7 334.1 344.8 Federal.................................................................................. 18.7 95.6 111 .7 123.2 118.2 119.4 119.2 124.2 129.0 National defense............................................................. 14.0 73.5 73.5 73.4 77.4 84.0 80.5 81.4 82.1 84.9 87.4 Other................................................................................. 4.7 22.1 28.6 28.6 34.3 39.2 37.7 38.0 37.1 39.3 42.5 State local............................................................................. 19.8 123.2 151.0 168.0 189.4 208.0 196.3 201.9 205.5 209.9 214.8 Gross national product in 1972 dollars............................... 533.5 1,075.3 1,171.1 1,233.4 1,210.7 1,186.0 1,186.8 1,158.6 1,168.1 1,201.5 1,215.9 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey of Current Business, Jan. 1976. NATIONAL INCOME (In billions of dollars) 1974 1975 Item 1950 1970 1972 1973 1974 1975P IV I II III \\p National income....................................................................... 236.2 798.4 951.9 1,067.3 1,141.1 1,209.7 1,161.3 1,155.2 1,180.8 1,232.5 Compensation of employees.................................................. 154.8 609.2 715.1 797.7 873.0 921.4 898.1 897.1 905.4 928.2 955.1 Wages and salaries............................................................. 147.0 546.5 633.8 700.9 763.1 801.6 783.6 781.0 787.6 807.3 830.7 Private............................................................................... 124.4 430.5 496.2 552.3 603.0 627.7 617.7 611.7 615.0 631.9 650.5 Military............................................................................. 5.3 20.7 22.0 22. 1 22.3 23.0 23.0 22.9 22.8 22.8 23.6 Government civilian...................................................... 17.4 95.3 115.6 126.5 137.7 151 .0 143.0 146.4 149.7 152.6 156.5 110.0 Supplements to wages and salaries.................................. 7.8 62.7 81.4 96.8 119.8 114.4 116.1 117.8 120.9 124.4 Employer contributions for social insurance............ 4.2 30.7 39.4 49.3 55.5 58.5 56.9 57.1 57.5 58.9 60.6 Other labor income........................................................ 3.7 32.0 42.0 47.5 54.5 61.3 57.6 59.0 60.3 62.0 63.8 Proprietors’ income with inventory valuation and capital consumption adjustments...................................... 38.4 65.1 76.1 91.7 85.1 83.3 83.6 79.6 78.6 88.0 87.0 Business and professional............................................. 24.9 51.2 58.1 59.3 59.5 58.7 59.0 58.6 58.5 58.7 58.9 Farm.................................................................................. 13.5 13.9 18.0 32.4 25.6 24.6 24.6 21.0 20.1 29.3 28.2 Rental income of persons with capital consumption adjustment........................................................................ 7.1 18.6 21.5 21.3 21.0 21.1 20.9 20.8 20.5 20.9 22.0 Corporate profits and inventory valuation adjustment and without capital consumption adjustment................... 37.6 66.4 89.6 98.6 93.6 107.9 86.1 83.4 101.6 119.6 Profits before tax................................................................ 42.6 71.5 96.2 117.0 132.1 119.1 123.9 97.1 108.2 129.5 P P r r o o f f i i t ts s t a a f x te r li a ta b x il . i . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 4 7. . 9 7 3 34 7 . . 0 5 4 5 1 4 . . 5 6 4688 .2 8 5 79 2 .6 5 A 72 6 . . 5 1 4 74 9 .2 7 5 3 9 7 .5 6 6461..66 5 7 0 8 . . 7 8 Dividends..................................................................... 8.8 22.9 24.6 27.8 31.1 32.8 31.7 32.1 32.6 33.5 33.1 Undistributed profits................................................. 15.9 14.1 30.0 40.9 48.4 39.6 43.0 27.5 34.0 45.3 Inventory valuation adjustment...................................... -5.0 -5.1 -6.6 -18.4 -38.5 -11.2 -37.7 -13.7 -6.6 -9.9 -14.7 Capital consumption adjustment.................................... -4.0 1.5 2.5 1.6 -2.3 -5.7 -4.2 -4.5 -5.0 -6.5 -6.6 Net interest............................................................................... 2.3 37.5 47.0 56.3 70.0 81.6 76.7 78.7 79.7 82.2 85.7 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

MARCH 1976 □ NATIONAL PRODUCT AND INCOME A55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1974 1975 Item 1950 1970 1972 1973 1974 1975 Gross national product........................................................... 286.2 982.4 1,306.3 1,406.9 1,498.8 1,441.3 1,433.6 1,460.6 1,528.5 1,572.5 Less: Capital consumption allowances with capital consumption adjustment....................................... 23.9 90.8 105.4 117.1 134.0 152.0 142.1 145.4 149.5 154.7 158.5 Indirect business tax and nontax liability............... 23.4 94.0 111.0 120.2 127.3 137.3 129.5 131.6 135.2 140.0 142.2 Business transfer payments...................................... .8 4.0 4.7 5.2 5.8 6.3 6.0 6.2 6.3 6.4 6.5 Statistical discrepancy................................................ 2.0 -2.1 1.7 .4 -.6 -4.6 2.9 -3.2 -8.9 -3.2 Plus: Subsidies less current surplus of government enterprises................................................................. . 1 2.7 3.6 3.7 .7 1.9 .4 1.6 2.2 1.9 Equals: National income....................................................... 236.2 798.4 951.9 1.067.3 1,141.1 1,209.7 1,161.3 1,155.2 1,180.8 1,232.5 Less: Corporate profits with inventory valuation and capital consumption adjustments....................... 33.7 67.9 92.1 100.2 91.3 102.3 82.0 78.9 96.6 113.1 Net interest................................................................... 2.3 37.5 47.0 56.3 70.7 81.6 76.7 78.7 79.7 82.2 85.7 Contributions for social insurance......................... 7.1 58.7 73.6 91.5 102.9 108.3 105.0 106.0 106.6 108.9 111.8 Wage accruals less disbursements........................... -.1 -.5 Plus: Government transfer payments to persons . 14.4 75.9 99.4 113.5 134.5 168.7 145.5 157.7 169.4 172.4 175.2 Personal interest income................................. 8.9 64.3 74.6 88.4 106.5 120.5 114.0 116.0 117.6 121.2 127.4 Dividends........................................................... 22.9 24.6 27.8 31.1 32 31.7 32.1 32.6 33.5 33. 1 Business transfer payments............................ 4.0 4.7 5.2 5.8 6.3 6.0 6.2 6.3 6.4 6.5 Equals: Personal income.............................. 226.1 801.3 942.5 1.054.3 1,154.7 ,245.9 ,194.8 ,203.6 ,223.8 ,261.7 ,294.5 Less: Personal tax and nontax payments. 20.6 115.3 141.2 151.2 171.2 169.2 178.9 179.6 142.1 174.6 180.5 Equals: Disposable personal income.......... 205.5 685.9 801.3 903.1 983.6 ,076.7 ,015.9 ,024.0 ,081.7 ,087.1 ,114.0 Less: Personal outlays.......................................................... 194.7 635.4 751.9 830.4 909.5 987.8 932.4 950.4 974.2 .001.3 ,025.4 Personal consumption expenditures................... 192.0 618.8 733.0 808.5 885.9 963.8 908.4 926.4 950.3 977.4 ,001.0 Interest paid by consumer to business............... 2.3 15.5 17.9 20.6 22.6 23. 1 23.0 23.0 22.8 23.0 23.4 Personal transfer payments to foreigners (Net) .4 1.1 1.0 1.2 1.0 1.0 1.0 1.0 1.1 .9 1.0 Equals: Personal saving......................................................... 10.8 50.6 49.4 72.7 74.0 88.9 83.6 73.6 107.5 85.9 88.6 Disposable personal income in (1972) dollars. 361.9 741.6 801.3 856.0 843.5 856.7 837.6 831.6 869.8 858.2 867.3 Note.—Dept, of Commerce estimates. Quarterly data seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1975 1976 Item 1974 1975 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.p Total personal income. 1154.7 1245.9 1202.6 1203.2 1205.01209.0 1217.2 1245.2 1244.0 1262.41278.7 1287.4 1295.9 1300.2 1313.8 Wage and salary disbursements........... 763.6 801.6 782.1 779. 781.7 782.7 787.4 792.7 797.4 808.8 815.6 824.1 831.2 836.8 846.6 Commodity-producing industries. . . 273.7 273.6 271.7 266. 265.9 265.8 267.0 268.8 270.9 275.6 279.5 281.7 283.2 286.9 290.6 Manufacturing only........................ 211.2 211.2 207.8 204. 204.4 204.9 205.6 207.2 208.8 213.2 216.6 218.7 219.7 223.3 226.1 Distributive industries....................... 184.3 195.1 189.9 190. 190.7 190.9 191.7 192.9 193.9 197.7 198.2 200.2 202.4 202.9 206.4 Service industries............................... 145.0 158.6 152.4 153. 154.6 154.5 156. 1 157.4 158.2 160.3 161.5 163.1 165.3 165.7 167.7 Government........................................ 160.6 174.3 168.1 169. 170.5 171.5 172.6 173.6 174.4 175.2 176.4 179.0 180.3 181.2 182.0 Other labor income. 54.5 61.3 58.6 59.0 59.4 59.8 60.3 60.8 61.4 62.0 62.6 63.2 63.8 64.4 65. 1 Proprietors’ income with inventory valuation and capital consumption adjustments.......................................... 85.1 83.3 82.8 76.5 77.0 78.7 80.3 84.5 88.0 91.5 89.4 87.1 84.7 84.6 Business and professional................. 59.5 58.7 58.8 58.6 58.5 58.6 58.6 58.7 58.7 58.8 58.9 58.8 58.9 59.3 Farm..................................................... 25.6 24.6 24.0 17.9 18.5 20.1 21.7 25 29.3 32.7 30.5 28.3 25.8 25.3 Rental income of persons with capital consumption adjustment................. 21.0 21.1 20.9 20. 20.8 20.7 20.5 20.2 20.5 21.0 21.3 21.8 22.0 22.2 22.5 Dividends. 31.1 32.8 32.1 32. 32.1 32.4 32.6 32.9 33.2 33.5 33.9 33.8 33.8 31.7 33.4 Personal interest income. 106.5 120.5 115.9 116. 116.1 116.6 117.5 118.6 119.7 121.2 122.9 125.1 127.9 129.0 130.7 Transfer payments........... 140.4 175.0 159.0 165. 167.2 168.6 169.3 189.0 176. 178.1 181.3 180.6 181.4 182.9 184.2 Less: Personal contributions for social insurance....................................... 47.4 49.8 48.9 48.9 48.9 49.1 49.3 49.5 50.0 50.4 50.7 51.2 51.6 53.2 Nonagricultural income. 1119.1 1210.21167.6 1171. 1176.21179.71186.2 1212.5 1207.21222.1 1234.8 1245.6 1256.3 1262.9 1276.9 Agricultural income 35.6 35.7 35.0 31. 28.8 29.3 31.0 32.7 36.8 40.3 43.9 41.8 39.7 37.3 36.9 Note.—Dept, of Commerce estimates. Monthly data 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

A56 FLOW OF FUNDS □ MARCH 1976 SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 HI H2 Credit market funds raised by nonfinancial sectors 1 Total funds raised by nonfinancial sectors................. 67.9 82.4 96.0 91.8 98.2 147.4 169.4 187.4 180.1 197.3 182.6 212.0 1 2 Excluding equities................................................ 66.9 80.0 96.0 87.9 92.4 135.9 158.9 180.1 176.2 187.7 172.1 203.2 2 3 U.S. Government....................................................... 3.6 13.0 13.4 -3.7 12.8 25.5 17.3 9.7 12.0 85.2 83.9 86.5 3 4 Public debt securities.............................................. 2.3 8.9 10.4 -1 .3 12.9 26.0 13.9 7.7 12.0 85.8 85. 1 86.6 4 5 Agency issues and mortgages................................ 1 .3 4.1 3.1 -2.4 -.1 -.5 3.4 2.0 * -.6 -1.2 -.1 5 6 64.3 69.4 82.6 95.5 85.4 121.9 152.1 177.7 168.1 112.0 98.6 125.5 6 7 Corporate equities.................................................. 1 .0 2.4 * 3.9 5.8 11 .5 10.5 7.2 3.8 9.6 10.5 8.7 7 8 Debt instruments........................................................... 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 164.2 102.5 88.2 116.7 8 Private domestic 9 Nonfinancial sectors...................................... 62.7 65.4 79.7 91.8 82.7 117.3 147.8 170.1 152.7 100.0 89.1 110.9 9 10 Corporate equities.............................................. 1 .3 2.4 -.2 3.4 5.7 11 .4 10.9 7.4 4.1 9.5 10.3 8.7 10 11 Debt instruments...................................................... 61.5 63.0 79.9 88.4 77.0 105.8 136.9 162.7 148.6 90.5 78.8 102.2 11 12 Debt capital instruments................................ 38.2 44.5 49.5 49.6 56.7 83.2 93.8 96.1 92.9 94.9 101.0 88.8 12 13 State and local obligations......................... 5.6 7.8 9.5 9.9 11 .2 17.6 14.4 13.7 17.4 15.4 17. 1 13.7 13 14 Corporate bonds......................................... 10.2 14.7 12.9 12.0 19.8 18.8 12.2 9.2 19.7 27.0 35.3 18.8 14 15 Home mortgages.............................................. 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.7 35.9 32.5 39.3 15 16 Multifamily residential mortgages............... 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.8 3.6 2.7 4.5 16 17 Commercial mortgages................................... 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.5 8.4 8.5 8.4 17 18 Farm mortgages............................................... 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.9 4.5 4.9 4.1 18 19 Other debt instruments.................................. 23.3 18.5 30.4 38.8 20.3 22.6 43.0 66.6 55.6 -4.4 -22.2 13.4 19 20 Consumer credit.......................................... 6.4 4.5 10.0 10.4 6.0 11 .2 19.2 22.9 9.6 5.3 -1.5 12. 1 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 -12.6 -21.3 -3.8 21 22 Open-market paper..................................... 1 .1 1 .7 1 .8 3.0 3.0 -1 .2 -.5 -.4 6.6 -1.6 -1.5 -1.7 22 23 Other............................................................ 5.0 2.6 5.0 9.9 4.6 4.8 5.5 8.3 12.1 4.5 2.2 6.7 23 24 By borrowing sector:.......................................... 62.7 65.4 79.7 91 .8 82.7 117.3 147.8 170.1 152.7 100.0 89.1 110.9 24 25 State and local governments.......................... 6.3 7.9 9.8 10.7 11 .3 17.8 14.2 12.3 16.6 13.2 14.8 11.7 25 26 Households...................................................... 22.7 19.3 30.0 31 .7 23.4 39.8 63.1 72.8 44.0 43.3 37.4 49.2 26 27 Farm................................................................ 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.8 6.7 6.3 7. 1 27 28 Nonfarm noncorporate.................................. 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 7.2 2.5 -.3 5.4 28 29 Corporate........................................................ 25.3 29.6 31 .6 38.9 39.5 46.8 55.3 67.2 11A 34.2 30.9 37.5 29 30 Foreign.................................................................. 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.4 12.0 9.5 14.6 30 31 Corporate equities.............................................. -.3 .1 .2 .5 .1 * -.4 -.2 -.3 . 1 . 1 * 31 32 Debt instruments...................................................... 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 12.0 9.3 14.6 32 33 Bonds............................................................... .7 1 .2 1 .1 1 .0 .9 .9 1 .0 1 .0 2.2 6. 1 5.9 6.4 33 34 Bank loans n.e.c.............................................. -.2 -.3 -.5 -.2 -.3 1 .6 2.9 2.8 4.7 3.7 1.3 6. 1 34 35 Open-market paper......................................... -.1 .5 -.2 .3 .8 .3 -1 .0 2.2 7.1 -.5 -1.2 . 1 35 36 U.S. Government loans.................................. 1 .3 2.6 2.2 2.1 1 .3 1 .8 1 .8 1 .7 1 .7 2.7 3.4 1.9 36 37 Memo: U.S. Govt, cash balance............................... -.4 1 .2 -1 .1 .4 2.8 3.2 -.3 -1 .7 -4.6 2.9 2.8 2.9 37 Totals net of changes in U.S. Govt, cash balances— 38 Total funds raised...................................................... 68.3 81 .3 97.1 91 .4 95.5 144.2 169.7 189.0 184.7 194.4 179.7 209.0 38 39 By U.S. Government.............................................. 4.0 11.8 14.6 -4.1 10.0 22.3 17.6 11 .4 16.6 82.3 81.1 83.5 39 Credit market funds raised by financial sectors 1 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 11.3 5.3 17.3 1 2 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 10.3 9.1 11.6 2 3 U.S. Government securities............................... 5.1 -.6 3.2 9.1 8.2 3.8 6.2 19.6 21 .4 10. 1 8.0 12.2 3 4 Loans from U.S. Government........................... -.2 -.1 _ 2 - .3 .7 .2 1.1 — .6 4 5 Private financial sectors......................................... 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 1.0 -3.8 5.7 5 6 Corporate equities.............................................. 3.7 3.0 6.4 6.1 4.6 3.3 2.4 .8 1 .7 1.9 2. 1 1.7 6 7 Debt instruments...................................................... 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.2 -.9 -5.9 4.0 7 8 Corporate bonds............................................. .9 1 .3 1.1 1 .5 3.1 5.1 7.0 2.3 1 .4 1.3 1.6 1.1 8 9 Mortgages........................................................ -.9 1 .0 .4 .2 .7 2.1 1 .7 -1 .2 -1 .3 2.3 2.0 2.6 9 10 Bank loans n.e.c.............................................. -1 .0 -2.0 2.5 2.3 -.5 3.0 6.8 13.5 7.5 -4.0 -6.0 -2.1 10 11 Open-market paper and RP’s........................ 33 1 .9 3.6 10.7 -5.0 1 .8 4.9 9.8 -.1 3.4 4.6 2.3 11 12 Loans from FHLB’s....................................... .9 -2.5 .9 4.0 1 .3 -2.7 * 7.2 6.7 -3.9 -8.1 .2 12 13 Total funds raised, by sector...................................... 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 11.3 5.3 17.3 13 14 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 10.3 9. 1 11.6 14 15 Private financial sectors......................................... 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 1.0 -3.8 5.7 15 16 Commercial banks.............................................. -.1 .1 1 .2 1 .4 -3.1 2.5 4.0 4.5 -1 .9 3.8 4.6 2.9 16 17 Bank affiliates...................................................... 4.2 -1 .9 -.4 .7 2.2 2.4 .2 .9 -. 5 17 18 Foreign banking agencies................................... .1 * .1 .2 .1 1 .6 .8 5.1 2.9 -1.0 -.9 -1.0 18 19 Savings and loan associations........................... .1 -1 .7 1.1 4.1 1 .8 -.1 2.0 6.0 6.3 -2.0 -8.0 3.9 19 20 Other insurance companies................................ .1 .1 .2 .5 .4 .6 .5 .5 .4 .7 .8 .7 20 21 Finance companies............................................. 3.1 1 .2 5.7 8.3 1 .6 4.2 9.3 9.4 3.9 -.5 -2. 1 1.1 21 22 REITS.................................................................. .7 1 .3 2.7 3.0 6.1 6.3 1 .0 -1.7 -1.8 -1.6 22 23 Open-end investment companies....................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1 .6 1 .0 1.5 2.7 .3 23 Total credit market funds raised, all sectors, by type 1 Total funds raised....................................................... 79.6 84.4 114.3 125.5 110.8 163.9 198.3 239.4 218.1 208.5 187.8 229.2 1 2 Investment company shares................................... 3.7 3.0 5.8 4.8 2.6 1 .1 -.7 -1 .6 1 .0 1.5 2.7 .3 2 3 Other corporate equities......................................... 1 .1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 10.0 9.8 10.1 3 4 Debt instruments........................................................... 74.9 79.0 107.9 115.5 100.4 149.1 185.4 231.3 212.5 197.1 175.3 218.8 4 5 U.S. Government securities............................... 8.8 12.5 16.7 5.5 21 .1 29.4 23.6 29.4 33.5 95.4 91.8 99.0 5 6 State and local obligations................................. 5.6 7.8 9.5 9.9 11 .2 17.6 14.4 13.7 17.4 15.4 17.1 13.7 6 7 Corporate and foreign bonds............................ 11 .8 17.2 15.0 14.5 23.8 24.8 20.2 12.5 23.3 34.5 42.8 26.2 7 8 Mortgages........................................................... 21 .3 23.0 27.4 27.8 26.4 48.9 68.8 71 .9 54.5 54.6 50.7 58.6 8 9 Consumer credit.................................................. 6.4 4.5 10.0 10.4 6.0 11 .2 19.2 22.9 9.6 5.3 -1.5 12.1 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 -12.9'-26.0 .2 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 1.3 1.9 .7 11 12 Other loans.......................................................... 6.9 2.5 8.3 15.8 7.3 4.0 7.4 17.2 21 .1 3.4 -1.4 8.3 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

MARCH 1976 □ FLOW OF FUNDS A57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1974 1975 HI H2 1 Total funds advanced in credit markets to non­ financial sectors........................................................ 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 176.2 187.7 172.1 203.2 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 34.6 39.9 29.2 3 U.S. Government securities...................................... 3.4 6.8 3.4 .7 15.9 33. 8.4 11.0 8.6 17.2 28.3 6.2 4 Residential mortgages................................................. 2. 2.1 2. 4.6 5.7 5.7 5.2 7.6 13.8 17.0 16.3 17.8 5 FHLB advances to S&L’s.......................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -3.9 -8.1 .2 6 Other loans and securities........................................ 4, 4. 5.1 6.3 5.2 4.9 4.6 7.5 20.1 4.2 3.4 5.1 By agency— 7 U.S. Government......................................................... 4.9 4.6 4.9 2.9 2. 3.2 2.6 3.0 7.4 10.6 10.9 10.2 8 Sponsored credit agencies.......................................... 5.1 -.1 3.2 8.9 10.0 3.2 7.0 20.3 24.1 11.5 11.1 11.9 9 Monetary authorities................................................... 3.5 4. 3.7 4.2 5.0 8.9 .3 9.2 6.2 8.5 7.0 10.1 10 Foreign........................................................................... -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 3.9 10.9 -3.0 11 Agency borrowing not included in line 1................... 4. 3.5 8.2 3.8 6.2 19.6 22.1 10.3 9. 1 11.6 Private domestic funds advanced 12 Total net advances............................................................ 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 149.1 163.4 141.3 185.6 13 U.S. Government securities...................................... 5.4 5.7 13.3 4 5.2 -4.4 15.2 18.4 2.4.9 78. 1 63.5 92.8 14 State and local obligations........................................ 5.6 7 9.5 9.9 11.2 17.6 14.4 13.7 17.4 15.4 17.1 13.7 15 Corporate and foreign bonds.................................... 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 20.6 33.3 41. 1 25.5 16 Residential mortgages................................................. 12.0 13.0 15.5 15.7 12, 29.1 44.6 44.1 25.6 22.4 19. 1 25.7 17 Other mortgages and loans....................................... 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 67.4 10.3 -7.5 28. 1 18 Less: FHLB advances................................................. .9 -2.5 .9 4.0 1.3 -2.7 7.2 6.7 -3.9 -8.1 .2 Private financial intermediation 19 Credit market funds advanced by private financial institutions.................................................................. 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.5 121.7 115.3 128.1 20 Commercial banks....................................................... 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 64.6 26.6 16.8 36.3 21 Savings institutions..................................................... 7.9 15.0 15.6 14.5 16.9 41.4 49.3 35.1 26.9 56. 1 58.9 53.3 22 Insurance and pension funds.................................... 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.3 39.7 39.8 39.6 23 Other finance................................................................ 4.5 -.3 7.0 9.9 5.7 5.3 15. 15.0 5.7 -.6 -. 1 -1.0 24 Sources of funds................................................................ 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.5 121.7 115.3 128.1 24 25 Private domestic deposits.......................................... 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 76.5 94.3 105.4 83.1 25 26 Credit market borrowing........................................... 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.2 -.9 -5.9 4.0 26 27 Other sources................................................................ 19 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40.8 28.4 15.8 41.0 27 28 Foreign funds........................................................... 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 13.6 .2 -8.0 8.5 28 29 Treasury balances.................................................... -.5 .2 -.2 * 2.9 2.2 .7 -1.0 -5.1 -1.6 -2.1 -1.1 29 30 Insurance and pension reserves............................ 13.6 12.0 11.4 10.8 13.1 9.1 13.1 16.7 27.9 28. 1 27.7 28.5 30 31 Other, net.................................................................. 3.0 -.6 7.2 13. 4.4 2.9 16.5 20.2 4.4 1.7 -1. 5.2 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 40.8 20.1 61.4 32 33 U.S. Government securities...................................... 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 18.1 21.1 -4.6 46.8 33 34 State and local obligations........................................ 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 10.8 9.8 11.5 8.1 34 35 Corporate and foreign bonds.................................... 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -1.7 7.6 9.2 6.0 35 36 Commercial paper....................................................... 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 1.6 -.9 1.9 -3.8 36 37 Other............................................................................... 2.3 1.7 2.1 2.0 1.4 1.5 .8 3.8 2.9 3.3 2.1 4.4 37 38 Deposits and currency.................................................... 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 82.8 100.3 112.8 87.8 38 39 Time and savings accounts........................................ 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 71.9 86. 1 91.6 80.7 39 40 Large negotiable CD’s........................................... -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 23.6 -9.5 -22.3 3.4 40 41 Other at commercial banks.................................. 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 26.6 36.2 45.0 27.4 41 42 At savings institutions............................................ 7.3 16.7 12.9 8.0 16.9 40.4 45.9 28.2 21.8 59.4 68.9 49.9 42 43 Money............................................................................ 4.1 12.8 14.5 7.7 10.5 12.7 16.7 12.6 10.8 14. 1 21.2 7. 1 43 44 Demand deposits..................................................... 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 4.5 8. 1 13.8 2.4 44 45 Currency.................................................................... 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.3 6.0 7.3 4.7 45 46 Total of credit market instr., deposits, and currency. 68.7 49.9 115.7 128.1 114.5 149.2 46 47 Private support rate (in per cent)............................ 17.9 14.1 12.7 17.8 30.4 30.7 11.5 18.4 27.9 18.4 23.2 14.4 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 74.5 81.6 69. 1 49 Total foreign funds..................................................... 2.1 4.3 2.9 9.1 1.8 23.2 13.6 7.2 25.1 4.1 2.8 5.4 Corporate equities not included above 1 Total net issues...................................... 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 5.6 11.5 12.5 10.4 1 2 Mutual fund shares......................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 1.5 2.7 .3 2 3 Other equities.................................... 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 10.0 9.8 10. 1 3 4 Acquisitions by financial institutions 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 6.1 8.3 10.4 6.2 4 5 Other net purchases............................. -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 -.5 3.2 2. 1 4.2 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-56. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+44. See line 25. security issues backed by mortgage pools. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Lines 39 + 44. 49. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line 1 and 3. Includes issues by financial institutions. branches, and liabilities of foreign banking agencies to foreign af­ filiates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 U.S. BALANCE OF PAYMENTS □ MARCH 1976 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 IV IIIP Merchandise trade balance -6,409 955 -5,277 -2,315 -1,380 1,830 3,378 2,026 Exports.............................. 49,388 71,379 98,309 25,034 26,593 27,188 25,692 26,716 Imports.............................. -55,797 -70,424 -103,568 -27,349 -27,973 -25,358 -22,314 -24,690 Military transactions, net.......... -3,621 -2,317 -2,158 -513 -498 -349 -405 128 Travel and transportation, net. -3,024 -2,862 -2,692 -721 -741 -572 -393 -480 Investment income, net 2.......................................... 4,321 5,179 10,121 2.354 2,559 1,176 1,392 1,778 U.S. direct investments abroad 2................... 6,416 8,841 17,679 4,700 4,080 2,156 2,171 2,371 Other U.S. investments abroad....................... 3,746 5,157 8,389 2.354 2,358 2,148 2,075 2,307 Foreign investments in the United States 2 . -5,841 -8,819 -15,946 -4,700 -3,879 -3,128 -2,854 -2,900 Other services, net 2.................................................. 2,803 3,222 3,830 960 1,049 1,093 1,043 1,095 Balance on goods and services - -5,930 4,177 3,825 -235 989 3,178 5,015 4,547 Not seasonally adjusted... -2,871 2,348 4,230 5,234 1,978 Remittances, pensions, and other transfers............ -1,606 -1,903 -1,721 -457 -439 -426 Balance on goods, services, and remittances. -7,537 2,274 2,104 -692 550 2,730 4,553 4,121 Not seasonally adjusted............................. -3,340 1,904 3,812 4,762 1,539 U.S. Government grants (excluding military). -2,173 -1,938 4-5,461 -649 -727 -721 Balance on current account... -9,710 3354-3,357 -1,500 -99 2,003 3,832 3,500 Not seasonally adjusted., -4,104 1,289 3,075 3,973 964 16 U.S. Government capital flows excluding nonscheduled repayments, net 5........................................................................ -1,706 -2,933 4408 -195 -1,015 -821 -701 17 Nonscheduled repayments of U.S. Government assets.......... 137 289 1 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. 234 1,154 710 278 125 541 467 138 19 Long-term private capital flows, net........................................... -69 177 -8,463 -2,157 -5,570 -2,199 -2,431 -1,357 20 U.S. direct investments abroad............................................ -3,530 -4,968 -7,455 -1,828 -3,310 -1,041 -2,304 -668 21 Foreign direct investments in the United States 6.......... 380 2,656 2,224 -1 -653 340 679 -124 22 Foreign securities.................................................................... -618 -759 -1,990 -304 -726 -2,021 -1,001 -988 23 U.S. securities other than Treasury issues 6..................... 4,507 4,055 672 204 -663 653 678 1,033 24 Other, reported by U.S. banks............................................ -1,158 -706 -1,166 48 -285 -437 -648 -710 27 Other, reported by U.S. nonbanking concerns................. 351 -101 -748 -276 67 307 165 110 26 Balance on current account and long-term capital 5. -11,113 -977 -10,702 -3,574 -6,529 -670 1,047 1,580 Not seasonally adjusted.......................................... -6,097 -4,616 -134 1,116 -837 27 Nonliquid short-term private capital flows, net............. -1,542 -4,238 -12,936 -1,458 -2,305 1,929 -970 -1,335 28 Claims reported by U.S. banks................................. -1,457 -3,886 -12,173 -1,614 -2,406 1,733 -1,008 -1,116 29 Claims reported by U.S. nonbanking concerns -306 -1,183 -2,603 -276 -137 250 -167 202 30 Liabilities reported by U.S. nonbanking concerns. 221 831 1,840 432 238 -54 205 -421 31 Allocations of Special Drawing Rights (SDR’s)............ 710 32 Errors and omissions, net................................................... -1,884 -2,436 4,698 1,135 1,236 2,067 843 -37 33 Net liquidity balance............... -13,829 -7,651 -18,940 -3,897 -7,598 3,326 920 208 Not seasonally adjusted.. -5,538 -6,475 4,471 774 -1,500 34 Liquid private capital flows, net................................. 3,475 2,343 10,543 4,014 2.730 6,587 -2,634 4,711 35 Liquid claims........................................................... -1,247 -1,951 -6,267 -249 -2,101 4,744 -2,287 378 36 Reported by U.S. banks............................... -742 -1,161 -6,134 -753 -1,732 5,062 -2,413 926 37 Reported by U.S. nonbanking concerns.. -505 -790 -133 504 -369 318 126 -548 38 Liquid liabilities—.................................................. 4,722 4,294 16,810 4,263 4,831 1.843 -347 4,333 39 Foreign commercial banks.......................... 3,717 3,028 12,621 3,178 2.730 2,818 175 2,429 40 International and regional organizations. 103 377 1,319 215 1,308 871 -666 1,191 41 Other foreigners............................................ 902 889 2,870 870 793 104 144 713 42 Official reserve transactions balance, financed by changes in—... -10,354 -5,308 -8,397 117 -4,868 -3,261 -1,714 4,919 Not seasonally adjusted................................................................. -1,684 -4,070 -2,214 -1,290 3,051 43 Liquid liabilities to foreign official agencies.............................. 9,734 4,456 8,503 751 3,886 2,751 1,423 -4,828 44 Other readily marketable liabilities to foreign official agen­ cies 7............................................................................................... 399 1,118 673 136 630 841 321 252 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt................................................................... 189 -475 655 -1 215 -6 -1 -1 46 U.S. official reserve assets, net..................................................... 32 209 -1,434 -1,003 137 -325 -29 -342 47 Gold........................................................................................... 547 48 SDR’s........................................................................................ -703 9 -172 -123 -20 -4 -16 -25 49 Convertible currencies........................................................... 35 233 3 -152 241 -14 -6 -222 50 Gold tranche position in IMF............................................. 153 -33 -1,265 -728 -84 -307 -7 -95 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14).......................................................................... 4,492 2,809 1,811 352 490 787 1,244 66 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................... 4,521 8,124 7,508 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)........................................ 548 945 1,554 Balances excluding allocations of SDR’s: 54 Net liquidity, not seasonally adjusted., -14,539 -7,651 -18,940 -5,538 -6,475 4,471 774 -1,500 55 Official reserve transactions, N.S.A... -11,064 -5,308 -8,397 -1,684 -4,070 -2,214 -1,290 3,051 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1973 1974 1975 r 1973 19743 1975 19743 1975 Month: Jan... 4.955 150 9.373 9,103 5,244 6,498 9,635 9,176 -289 + 652 -262 -73 Feb.. . 5,070 549 8,755 5,483 7,318 7,928 -413 +231 + 827 Mar.., 5,311 625 8,685 5,414 7,742 7,466 -103 -117 + 1 .219 Apr.. . 5,494 108 8,648 5,'360 8,025 7.959 + 133 + 83 +689 May. . 5,561 652 8.222 5,703 8,265 7,266 -142 -612 +955 June.. 5.728 317 8,716 5,775 8,577 7,104 -47 -260 + 1 .613 July.., 5,865 307 8,894 5,829 8,922 7,832 + 37 -615 + 1 ,062 Aug... 6,042 379 8,979 6,011 9,267 7.877 + 32 -888 + 1,102 Sept... 6.420 399 9,146 5,644 8,696 8.205 + 776 -297 + 941 Oct.. . 6,585 673 9,225 5,996 8,773 8,170 + 589 -100 + 1,054 Nov... 6.879 973 9,409 6.684 8,973 8,204 + 195 + 1 ,206 Dec... 6,949 862 9,250 6.291 9,257 8,526 + 658 -395 + 724 Qu arter: I 15,336 22.325 26,813 16,140 21,558 25,030 -804 + 767 + 1,784 I I 16,783 24,077 25,585 16.839 24,867 22,328 -56 -790 + 3,257 III... . 18,327 25.085 27,019 17,483 26,885 23.915 +844 -1.800 + 3,104 IV.. . . 20,413 26,508 27,884 18,972 27,003 24,900 + 1,441 -495 +2,984 Year4.. 70,823 97,908 107,191 69,476 100,251 96,140 + 1 ,347 -2,343 + 11 ,050 1 Exports of domestic and foreign merchandise (f.a.s, value basis); basis. For calendar year 1974, the f.a.s. import transactions value was excludes Department of Defense shipments under military grant-aid $100.3 billion, about 0.7 per cent less than the corresponding Customs programs. import value of $101.0 billion. 2 General imports, which includes imports for immediate consumption 4 Sum of unadjusted figures. plus entries into bonded warehouses. See also note 3. 3 Beginning with 1974 data, imports are reported on an f.a.s. trans­ Note.—Bureau of the Census data. Details may not add to totals be­ actions value basis; prior data are reported on a Customs import value cause of rounding. 3. U.S. RESERVE ASSETS (In millions of dollars) Gold stock1 Con­ Reserve Gold stock Con­ Reserve E y n e d a r of Total Total 2 Treasury v c fo e u c r r r i e t r e i i e s b g n l n e ­ po I s M i i n t F ion SDR’s3 E m n o d n t o h f Total Total2 Treasury v c fo e u c r r r i t e r e i i e b s g n l n e ­ po I s M i i n ti F on SDR’s3 1961 ... 18,753 16,947 16,889 116 1 ,690 1975— 1962. .. 17,220 16,057 15,978 99 1,064 Feb .... 16,132 11,621 11,621 2 2,065 2,444 1963.. . 16,843 15,596 15,513 212 1 ,035 16,256 11,620 11,620 19 2,194 2,423 1964. . . 16,672 15,471 15,388 432 769 16,183 11,620 11,620 2 2,168 2,393 May.... 16,280 11,620 11 ,620 4 2,218 2,438 1965.. . 15,450 13,806 13,733 781 863 June----- 16,242 11,620 11,620 25 2,179 2,418 1966. . . 14,882 13,235 13,159 1 ,321 326 July----- 16,084 11,618 11,618 2 2,135 2,329 1967.. . 14,830 12,065 11,982 2,345 420 16,117 11,599 11,599 28 2,169 2,321 1968.. . 15,710 10,892 10.367 3,528 1 ,290 16,291 11,599 11,599 247 2,144 2,301 1969. . . 416,964 11,859 10.367 42,781 2,324 16,569 11,599 11 ,599 413 2,192 2,365 16,592 11 ,599 11 ,599 423 2,234 2,336 1970.. . 14,487 11,072 10,732 629 1,935 851 16,226 11,599 11,599 80 2,212 2,335 1971 . . . 512,167 10,206 10,132 5 276 585 1,100 19726. . 13,151 10,487 10,410 241 465 1,958 1976— 19737.. 14,378 11.652 11,567 552 2,166 16,622 11,599 11,599 333 2,314 2,376 1974... 15,883 11.652 11,652 1,852 2,374 Feb 816,661 11,599 11,599 296 8 2,390 8 2,376 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 valua­ mark 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 Feb. amounted to $2,449 million, reserve position in IMF, $2,465 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $16,809. revalued to reflect market exchange rates as of Dec. 31, 1971. Note.—See Table 20 for gold held under earmark at F.R. Banks for 6 Total reserve assets include an increase of $1,016 million resulting foreign and international accounts. Gold under earmark is not included from change in par value of the U.S. dollar on May 8, 1972; of which, in the gold stock of the United States. NOTES TO TABLE 1 ON OPPOSITE PAGE: 1 Adjusted to balance of payments basis; among other adjustments, 4 Includes under U.S. Government grants $2 billion equivalent, rep­ excludes military transactions and includes imports into the U.S. Virgin resenting the refinancing of economic assistance loans to India; a cor­ Islands. 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 some transactions of foreign official agencies. ment income and included in “Other services.” 7 Includes changes in long-term liabilities reported by banks in the 3 Differs from the definition of “net exports of goods and services” in United States and in investments by foreign official agencies in debt the national income and product (GNP) account. The GNP definition securities of U.S. Federally sponsored agencies and U.S. corporations. excludes special military sales to Israel from exports and excludes U.S. Govt, interest payments from imports. Note.—Data are from U.S. Department of Commerce, Bureau of Eco­ nomic Analysis. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 GOLD RESERVES □ MARCH 1976 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.......................... 49,790 6,478 11,652 31,660 231 169 312 882 1,781 927 97 76 103 1975—Feb................ 6,478 11,621 23i 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 6,478 11,620 231 169 312 882 1 ,781 927 97 76 103 6,478 11,620 231 169 312 882 1,781 927 97 76 103 June.............. 49,755 6,478 11,620 31,655 231 169 312 882 1,781 927 97 76 103 July............... 6,478 11,618 231 169 312 882 1,781 927 97 76 103 6.478 11.599 231 169 312 882 1,781 927 97 76 103 Sept................ ?,49,740 6,478 11,599 p31,660 231 169 312 882 1,781 927 97 76 103 Oct................. 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Nov............... 6.478 11.599 231 169 312 882 1,781 927 97 76 103 Dec................ 6,478 11.599 231 312 882 1,781 927 97 76 1976—Jan.p............. 6,478 11,599 231 312 882 1,781 927 97 76 End of France Ger­ Greece India Iran Iraq Italy Japan Kuwait Leb­ Libya Mexi­ Nether­ period many anon co lands 1970.......................... 3,532 3,980 117 243 131 144 2,887 532 86 288 85 176 1,787 1971.......................... 3,523 4,077 98 243 131 144 2,884 679 87 322 85 184 1,909 1972.......................... 3,826 4,459 133 264 142 156 3,130 801 94 350 93 188 2,059 1973.......................... 4,261 4,966 148 293 159 173 3,483 891 120 388 103 196 2,294 1974.......................... 4,262 4,966 150 293 158 173 3,483 891 148 389 103 154 2,294 1975—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 3,483 891 154 389 103 154 2,294 Sept............... 4,262 4,966 150 293 158 173 3,483 891 160 389 103 154 2,294 Oct................ 4,262 4,966 150 293 158 173 3,483 891 160 103 2,294 Nov............... 4,262 4,966 150 293 158 173 3,483 891 160 103 2^294 Dec................ 4,262 4,966 150 293 158 173 3,483 891 *■ 169 103 2*294 1976—Jan.^............. 4.262 4,966 158 3,483 891 169 103 2,294 United Bank End of Paki­ Portu­ Saudi South Spain Sweden Switzer­ Thai­ Turkey King­ Uru­ Vene­ for Intl. period stan gal Arabia Africa land land dom guay zuela Settle­ ments2 1970......................... 54 902 119 666 498 200 2,732 92 126 1,349 162 384 -282 1971......................... 55 921 108 410 498 200 2,909 82 130 775 148 391 310 1972.......................... 60 1,021 117 681 541 217 3,158 89 136 800 133 425 218 1973.......................... 67 1,163 129 802 602 244 3,513 99 151 886 148 472 235 1974.......................... 67 1,180 129 771 602 244 3,513 99 151 886 148 472 250 1975—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 M ay.............. 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 99 151 886 135 472 264 Aug............... 67 1 ,175 129 744 602 244 3,513 99 151 886 135 472 264 Sept............... 67 1,175 129 762 602 244 3,513 99 151 886 135 472 254 Oct................ 67 1,175 129 754 602 244 3,513 99 151 135 472 256 Nov............. 67 1,175 129 752 602 244 3.513 99 151 135 472 259 Dec ........... 67 129 749 602 244 3,513 99 151 472 246 1976—Jan p ......... 67 129 753 244 3,513 99 151 472 213 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 assets minus gold deposit liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A61 5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabili­ liabili- foreigners ties to End IMF Liquid mone­ of arising Short­ liabili­ Short­ tary period from term Market­ Non­ Other ties term Market­ inti, gold liabili­ able market­ readily to com­ liabili­ able and re­ trans­ ties re­ U.S. able U.S. market­ mercial ties re­ U.S. gional actions! Total ported Treas. Treas. able banks Total ported Treas. organi­ by bonds bonds liabili­ abroad 6 by bonds zations 8 banks and and ties5 banks and in notes3 notes 4 in notes3,7 U.S. U.S. 196 4 29,364 800 15,786 13,220 1,125 1,283 158 7,303 3,753 3,377 376 1,722 196 5 29,568 834 15,825 13,066 1,105 1,534 120 7,419 4,059 3,587 472 1,431 19669............. / \ 3 3 1 1 , , 1 0 4 1 4 9 1 1 , , 0 0 1 1 1 1 1 1 4 4, , 8 8 9 4 5 0 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 5 5 8 8 3 3 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 , , 2 2 7 7 1 2 3 3 , , 7 74 4 3 4 5 5 2 2 8 8 9 9 0 0 5 6 19679............ (35,819 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 1968 9............. (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 19699............ 10/45,755 1,109 1015,975 11,054 346 io 3,070 1,505 23,638 4,464 3,939 525 659 \45,914 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 1970—Dec. . 146,960 566 23,775 19,333 295 3,452 695 17,169 4,604 4,039 565 846 /67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 1971—Dec.11 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 1972—Dec... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec... 1292,456 1266,827 1243,923 5,701 1215,530 1,673 17,694 5,932 5,502 430 2,003 1974—Dec. 9. /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 1975—Jan. r. 118,172 75,960 51,832 5,177 16,324 2,627 29,135 8,752 8,244 508 4,325 Feb. r. 119,441 78,689 54,310 5,279 16,324 2,776 27,297 9,093 8,483 610 4,362 Mar.r. 119,851 79,190 53,706 6,003 16,324 3,157 27,414 9,047 8,411 636 4,200 Apr. r. 120.954 79,150 53,531 5,941 16,365 3,313 28,799 8,843 8,188 655 4,162 May r. 122,215 79,865 52,408 6,064 17,925 3.468 28.913 9.123 8,500 623 4,314 J Ju u l n y e r r . . 112221.,985664 8 7 0 9 . , 6 8 3 8 8 0 5 50 1 , , 3 9 9 2 3 9 6 6 , , 1 1 1 6 9 0 1 1 9 9 , ,0 47 27 4 3 3 , , 5 8 6 5 3 3 2 2 9 7 , . 0 9 3 9 5 0 9 9 , ,3 3 1 37 0 8 8 , , 6 6 5 2 6 7 6 7 5 1 4 0 4 4 , , 6 0 1 1 4 7 Aug. r. 124.269 79,357 49,915 6,276 19,324 3,842 30,340 9.668 8,997 671 4,904 Sept... 123,123 77,916 48,080 6,452 19,524 3,860 30,318 9,901 9,200 701 4,988 Oct.. . 123,228 79,798 49,602 6,624 19,524 4,048 28,467 10,021 9,283 738 4.942 Nov... 126.252 79,267 49,124 6,454 19,584 4,105 32,191 20,234 9,527 707 4,560 Dec... 125,985 79,997 49,170 6,575 19,834 4,418 29,579 10,766 10,037 729 5,643 1976—Jan. p.. 80,283 49,131 6,816 19,909 4,427 30,649 10,846 10,120 726 5,527 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969. of gold by the IMF to the United States to acquire income-earning assets. 11 Data on the second line differ from those on first line because cer­ 2 Includes BIS, and European Fund through Dec. 1972. tain accounts previously classified as official institutions are included 3 Derived by applying reported transactions to benchmark data; with banks; a number of reporting banks are included in the series for breakdown of transactions by type of holder estimated for 1963. the first time; and U.S. Treasury securities payable in foreign currencies 4 Excludes notes issued to foreign official nonreserve agencies. issued to official institutions of foreign countries have been increased in 5 Includes long-term liabilities reported by banks in the United States value to reflect market exchange rates as of Dec. 31, 1971. and debt securities of U.S. Federally sponsored agencies and U.S. cor­ 12 Includes $162 million increase in dollar value of foreign currency porations. liabilities revalued to reflect market exchange rates, as follows: short­ 6 Includes short-term liabilities payable in dollars to commercial banks term liabilities, $15 million; and nonmarketable U.S. Treasury notes, abroad and short-term liabilities payable in foreign currencies to commer­ $147 million. cial banks abroad and to other foreigners. 7 Includes marketable U.S. Treasury bonds and notes held by commer­ Note.—Based on Treasury Dept, data and on data reported to the cial banks abroad. Treasury Dept, by banks and brokers in the United States. Table excludes 8 Principally the International Bank for Reconstruction and Develop­ IMF holdings of dollars, and U.S. Treasury letters of credit and nonment and the Inter-American and Asian Development Banks. negotiable, non-interest-bearing special U.S. notes held by other inter­ 9 Data on the 2 lines shown for this date differ because of changes national and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries2 End of period countries Canada republics Africa 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—Dec.3 \ ( 7 7 6 6 , , 6 6 6 58 5 4 4 4 4. .1 18 8 5 5 3 3 . . 6 6 6 6 2 2 4 4 . . 4 4 1 1 9 9 1 1 8 8, , 6 6 1 0 1 4 3 3 . . 1 1 6 6 1 1 2 2 . . 6 6 2 2 7 7 1975—Jan.. 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 79,190 45.776 3,546 4,390 19,421 3,433 2,624 Apr. r 79.150 45.063 3,251 4,506 20,126 3,493 2,711 May r 79,865 45.343 101 4,600 20,456 3,448 2,917 Juner 80.638 45,341 3,008 4,723 20,497 3,800 3,269 Julyr. 79.880 44,316 2,966 4,763 21 ,384 3,319 3,132 Aug.r 79.357 44,068 2,929 4,937 21,057 3,392 2,974 Sept.T 77.916 43,339 3,011 4,840 20,819 3.145 2,762 Oct.. 79,798 44,868 3,049 4,254 22,008 3,018 2,601 Nov.. 79.267 44,602 3.218 4,056 21.826 2.951 2,614 Dec.?) 79,997 45.170 3,132 4,448 22,367 2,983 1 ,897 1976—Jan. v 80,283 45.248 3.420 3,551 23.360 2,724 1,980 1 Includes Bank for International Settlements, and European Funds institutions of foreign countries, as reported by banks in the United States; through 1972. foreign official holdings of marketable and nonmarketable U.S. Treasury 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ securities with an original maturity of more than 1 year, except for non­ pean dependencies in Latin America. marketable notes issued to foreign official nonreserve agencies; and in­ 3 See note 9 to Table 5. vestments by foreign official reserve agencies in debt securities of U.S. Federally sponsored agencies and U.S. corporations. Note.—Data represent short- and long-term liabilities to the official 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 organizations5 IMF Payable in dollars gold Deposits Payable invest­ U.S. End of period in ment Treasury Other Total1 Deposits U.S. Other foreign Total bills and short­ Treasury short­ cur­ certifi­ term Total bills and term rencies Demand Time2 cates liab. 6 Demand Time2 certifi­ liab.4 cates3 1972. 60,696 60,200 8,290 5,603 31 ,850 14,457 496 1 ,412 86 202 326 799 1973. 69,074 68,477 11 ,310 6,882 31,886 18,399 597 1 ,955 101 83 296 1 ,474 1974—Dec. 7. /94,847 94,081 14,068 10,106 35,662 34,246 766 3,171 139 111 497 2,424 194,760 93,994 14,064 10,010 35,662 34,258 766 3,171 139 111 497 2,424 1975—Jan. r. . 93,268 92,547 12,284 10,053 38,108 32,102 721 4,057 123 111 1 .234 2,589 Feb.r. 94,174 93,441 12,135 10,202 40,428 30,676 733 4,085 118 102 1,260 2,604 Mar.r. 93,032 92,351 12,329 10,043 40,094 29,885 682 3.502 189 116 777 2.419 Apr.r. 94,192 93,450 11,696 10,390 40,424 30,941 742 3,674 99 126 781 2,668 Mayr. 93,735 93,070 11,929 10,374 40,628 30,139 665 3,914 115 133 1 .994 1 ,672 Juner. 92,517 91,933 12,596 10,662 38,265 30,535 584 3,943 106 183 996 2,708 July r.. 92,500 91,939 12,218 10,385 38,564 30,772 560 4,444 146 134 2.518 1,646 Aug.r. 94,055 93,493 12,218 10,703 38,529 32,043 562 4,804 110 148 3.156 1 ,389 Sept. r. 92,499 91,945 13,422 10,400 36.653 31,470 554 4,901 107 127 3,008 1,659 Oct... . 91,935 91,300 12,159 10,584 '-37,749 30,808 635 4.583 132 150 2,397 1 ,903 Nov.^. 95,313 94,673 12,813 10,293 37,297 34.270 637 4,471 145 156 1 ,605 2,562 Dec.^.. 94,078 93,479 13,714 10,665 37,414 31,687 598 5.293 138 186 2,554 2,413 94,815 94,207 12,291 11,151 38,789 31,975 608 4.915 114 256 2,498 2,046 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies certifi­ liab. 4 Demand Time2 certifi­ liab. 6 cates3 cates 3 1973............. 67,119 11,209 6,799 31,590 16,925 597 43,923 2,125 3,911 31,511 6,248 127 1974—Dec. 7 /91,676 13,928 9,995 35.165 31,822 766 53,057 2.951 4,257 34.656 11,066 127 191,589 13,925 9,899 35.165 31,834 766 53,064 2.951 4,167 34.656 11,163 127 1975—Jan... 89,211 12,161 9,942 36,874 29,513 721 51,832 2,185 4,201 36,531 8,916 Feb.. 90,090 12,016 10,100 39,169 28,072 733 54,310 2,058 4,206 38,840 9,206 Mar.. 89,511 12,130 9,927 39,316 27,456 682 53,696 2,323 4,203 39,015 8,154 Apr. r 90.518 11,597 10,264 39,643 28,273 742 53,531 2,147 4,193 39,316 7,874 May r 89,821 11,814 10,241 38,634 28,468 665 52,408 2,175 4,324 38,372 7,537 Juner 88,659 12,494 10,654 37.269 27,658 584 52,039 2,564 4,321 36,994 8,160 July'. 88,590 12,086 10.288 36,079 29,577 560 50,643 2.492 4,098 35,803 8,250 Aug. r 89.249 12,121 10,251 35,406 30,909 562 49,932 2.493 3,939 35,055 8.445 Sept. r 87,598 13,315 10,273 33,645 29,811 554 48,080 2,452 3,957 33,284 8,387 Oct. r. 87,352 12,027 10,434 35,359 28,897 635 49,602 2,448 3,948 34,983 8,223 Nov.. 90,842 12,668 10,137 35,692 31,708 637 49.124 2,242 3,594 35,247 8,041 Dec.p 88,786 13,575 10,478 34,860 29,282 591 49,170 2,644 3,438 34,175 8,913 1976—Jan.p. 89,901 12,177 10,895 36,291 29,937 600 49,131 2,449 3,306 35,633 7,743 To banks9 To other foreigners To banks Payable in dollars and other foreigners: End of period Payable in Deposits U.S. Other Deposits U.S. Other foreign Treasury short­ Treasury short­ cur­ Total bills and term Total bills and term rencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 6 cates cates 1973.......................... 23,196 17,224 6,941 529 5,502 2,143 2,359 68 933 469 1974—Dec. 7. /38,619 29,676 8,248 1,942 232 19,254 8,304 2.729 3.796 277 1 ,502 639 138,525 29,441 8,244 1,936 232 19,029 8,445 2.729 3.796 277 1 ,643 639 1975—Jan............... 37,379 28,414 7,351 1 ,982 172 18,909 8,244 2,625 3,760 171 1 ,688 721 Feb............... 35,780 26,564 7,138 2,033 155 17,238 8,483 2,820 3,861 174 1 ,628 733 Mar.r.......... 35,825 26,732 7,077 1,808 101 17,747 8,411 2,740 3,916 200 1,555 682 Apr. r.......... 36,988 28,058 6,894 2,102 120 18,941 8,189 2,556 3,969 207 1,457 742 May r.......... 37,414 28,249 6,856 1,821 105 19,466 8,500 2,784 4,096 156 1,465 665 Juner.......... 36,620 27,261 7,075 2,009 99 18,078 8,775 2,855 4,324 176 1,421 584 July r........... 37,947 28,113 6,906 1,339 124 19,744 9,273 2,688 4,851 152 1,582 560 Aug. r.......... 39,317 29,708 6,923 1,836 121 20,827 9,048 2,705 4,476 230 1,637 562 Sept. r.......... 39,518 29,764 7,982 1,775 89 19,918 9,200 2,881 4,541 272 1,506 554 Oct. r........... 37,750 27.832 6,811 1,777 100 19,143 9,282 2,769 4,708 276 1,530 635 Nov.............. 41,718 31* 554 7,587 1,694 135 22,139 9,527 2,839 4,850 311 1,528 637 Dec.p........... 39,616 28,988 7,683 2,140 335 18,830 10,037 3,249 4,901 349 1,538 591 1976—Jan.p............ 40,769 30,049 6,828 2,180 370 20,670 10,120 2,899 5,409 288 1,523 600 1 Data exclude IMF holdings of dollars. with those shown for the preceding date; figures on the second line are 2 Excludes negotiable time certificates of deposit, which are included comparable with those shown for the following date. in “Other short-term liabilities.” 8 Foreign central banks and foreign central govts, and their agencies, 3 Includes nonmarketable certificates of indebtedness and Treasury Bank for International Settlements, and European Fund through Dec. bills issued to official institutions of foreign countries. 1972. 4 Includes liabilities of U.S. banks to their foreign branches, liabilities 9 Excludes central banks, which are included in “Official institutions.” of U.S. agencies and branches of foreign banks to their head offices and foreign branches, bankers’ acceptances, commercial paper, and negotiable Note.—“Short term” obligations are those payable on demand or having time certificates of deposit. an original maturity of 1 year or less. For data on long-term liabilities 5 Principally the International Bank for Reconstruction and Develop­ reported by banks, see Table 9. Data exclude International Monetary Fund ment and the Inter-American and Asian Development Banks. holdings of dollars; these obligations to the IMF constitute contingent Includes difference between cost value and face value of securities in liabilities, since they represent essentially the amount of dollars available IMF gold investment account. for drawings from the IMF by other member countries. Data exclude also 6 Principally bankers’ acceptances, commercial paper, and negotiable U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing time certificates of deposit. special U.S. notes held by the Inter-American Development Bank and 7 Data on the 2 lines shown for this date differ because of changes in the International Development Association. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 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 1976 Area and country Dec.1 Apr.r Mayr June7- July r Aug.r Sept.r Oct. Nov. Dec.?5 Jan.*5 Europe: Austria.......................................... 607 607 629 627 627 661 667 688 606 635 700 714 Belgium-Luxembourg............... 2,506 2,506 2,810 2,875 3,070 2,982 2,891 2,865 2,918 2,938 2,917 2,696 Denmark...................................... 369 369 340 323 355 325 308 311 327 361 332 375 Finland........................................ 266 266 212 181 365 361 406 391 367 380 391 309 France.......................................... 4,287 4,287 4,600 4,982 5,403 5,515 5,493 5,950 6,608 7,172 7,733 7,498 Germany...................................... 9,420 9,429 10,229 8,203 6,460 5,440 5,277 4,797 5,047 4,841 4,407 3,856 Greece.......................................... 248 248 202 273 254 299 307 361 331 313 284 279 Italy .............................................. 2,617 2,617 2,498 2,157 2,298 1 ,4?6 1 ,056 1 ,426 1 ,398 1 ,071 1,112 1,055 Netherlands................................. 3,234 3,234 3,302 3,351 3,535 3,539 3,301 3,059 3,199 3,301 3,148 3,132 Norway........................................ 1 ,040 1,040 827 846 945 1,118 1 ,052 982 886 970 996 888 Portugal....................................... 310 310 247 267 264 279 268 207 236 190 194 243 Spain............................................ 382 382 361 341 362 392 288 459 414 402 426 445 Sweden......................................... 1 ,138 1 ,138 1 ,477 1 ,697 1 ,847 2,010 2,203 2,195 2,252 2,241 2,286 2,266 Switzerland................................. 9,986 10.137 8,817 8,615 8,445 7,965 8,282 8,048 8,205 8,029 8,556 8,616 Turkey.......................................... 152 152 103 87 124 106 134 116 128 120 118 88 United Kingdom..................... 7,559 7,584 7,053 6,994 6,417 6,461 8,342 6,268 6,722 7,177 6,885 7,595 Yugoslavia.................................. 183 183 122 126 83 106 104 128 138 175 126 83 Other Western Europe2........... 4,073 4,073 2,516 2,546 2,562 2,560 2,291 2,443 2.428 2,370 2,970 2,317 U.S.S.R........................................ 82 82 34 61 62 29 50 39 42 38 40 45 Other Eastern Europe............... 206 206 123 148 370 181 160 272 153 128 200 152 Total.................................... 48,667 48,852 46,502 44,701 43,852 41,755 42,882 41,005 42,405 42,853 43,821 42,653 Canada............................................. 3,517 3,520 3,946 3,951 3,617 3,921 3,637 3,944 3,567 4,091 3,075 3,885 Latin America: Argentina..................................... 886 886 886 964 989 1 ,061 1 ,054 984 1 ,135 1,150 1 ,147 1,208 Bahamas...................................... 1,448 1 ,054 1 ,946 2,288 1 ,691 1 ,991 2,190 1 ,503 2,221 2,989 1,834 3,197 Brazil............................................ 1,034 1 ,034 1 ,077 984 1,081 853 921 1 ,016 1 ,083 1.075 1,227 1,191 Chile............................................. 276 276 278 260 289 301 280 293 270 266 317 248 Colombia..................................... 305 305 313 307 400 376 367 379 366 387 414 483 Mexico.......................................... 1,770 1,770 1,727 1,876 1,819 1,809 1.824 1,872 1 ,956 2,183 2,078 1,899 Panama........................................ 488 510 695 579 549 657 649 752 765 840 1 ,097 1,170 Peru.............................................. 272 272 217 206 219 228 208 245 247 249 244 219 Uruguay...................................... 147 165 183 168 155 190 160 208 168 175 172 185 Venezuela.................................... 3,413 3,413 3,559 3,866 3,726 3,964 4,242 4,247 3,531 3,188 3,290 2,711 Other Latin American re­ publics ...................................... 1,316 1,316 1,407 1,360 1,513 1,417 1,371 1,469 1,399 1,368 1,500 1,434 Netherlands Antilles and Surinam.................................... 158 158 113 123 134 104 105 119 113 118 129 124 Other Latin America................. 526 596 755 899 991 1,603 1,534 1,897 1 .046 2,141 1,501 1,613 Total.................................... 12,038 11,754 13,158 13,881 13,557 14,554 14,907 14,983 14,305 16,131 14,950 15,681 Asia: China, People’s Rep. of (China Mainland).................. 50 50 55 49 65 50 55 94 104 93 123 263 China, Republic of (Taiwan). . 818 818 1 ,045 1,006 1 ,071 1 ,015 1 ,054 1 ,058 1 ,061 1 ,051 1,025 1,010 Hong Kong................................. 530 530 543 596 598 540 577 741 684 683 623 667 India...................................................... 261 261 127 168 145 133 214 214 194 181 126 203 Indonesia..................................... 1,221 1 ,221 582 279 365 527 289 234 612 418 369 762 Israel............................................. 386 389 493 538 472 369 343 322 364 342 r386 292 Japan............................................ 10,897 10,897 10,993 11 ,109 11,223 11,669 11,218 11,128 9,940 10,776 10,142 10,442 Korea............................................ 384 384 345 341 361 366 374 342 400 386 390 395 Philippines................................... 747 747 660 662 697 632 669 604 580 593 698 601 Thailand...................................... 333 333 446 342 370 284 255 207 194 193 252 279 Middle East oil-exporting countries3................................ 4,633 4,608 3.932 4,300 3.835 4,432 4,804 5,111 5,785 5,987 6,440 6,418 Other............................................ 813 820 905 861 906 767 919 970 925 885 869 1,071 Total.................................... 21,073 21,082 20,124 20,251 20,108 20,785 20,770 21,025 20,844 21,589 21,443 22,403 Africa: Egypt............................................ 103 103 112 113 514 253 295 188 185 255 342 177 South Africa................................ 130 130 159 179 141 132 147 254 177 108 168 231 Oil-exporting countries4........... 2,814 2,814 3,070 3,009 2,965 2,785 2,872 2,649 2,447 2,372 2,238 2,134 Other............................................ 504 504 531 596 572 563 552 560 575 643 622 547 Total.................................... 3,551 3,551 3,872 3,897 4,192 3,732 3,866 3,651 3.385 3,377 3,370 3,089 Other countries: Australia...................................... 2,742 2,742 2,856 3,069 3,185 3,231 3,114 2,912 2,766 2,712 2,013 2,046 All other...................................... 89 89 60 71 64 77 75 78 80 87 114 143 Total..................................... 2,831 2,831 2,916 3,140 3,249 3,308 3,189 2,989 2,846 2,800 2,127 2,189 Total foreign countries................. 91,676 91,589 90,518 89,821 88,574 88,055 89,252 87,598 87,352 90,842 88,786 89,901 International and regional: International5............................. 2.900 2.900 3,365 3,661 3,694 4,173 4,500 4,621 4,303 4,217 5,069 4,640 Latin American regional.......... 202 202 220 169 155 181 215 186 190 193 187 198 Other regional6.......................... 69 69 90 84 94 90 88 94 90 61 37 76 Total.................................... 3,171 3,171 3,674 3,914 3,943 4,444 4,804 4,901 4,583 4,471 5,293 4,915 Grand total......................... 94,847 94,760 94,192 93,735 92,517 92,500 94,055 92,499 91,935 95,313 94,078 94,815 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 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 data7 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 68 126 180 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 r 118 120 Singapore.............. 53 141 165 245 215 Dominican Republic................ 104 118 137 p 128 214 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 r219 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 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 21 116 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 rl 07 100 Tanzania..................... 16 12 12 11 21 British West Indies................... 100 109 354 449 627 Tunisia........................ 11 7 17 19 23 Uganda....................... 19 6 11 13 Other Asia:.................................... Zambia....................... 37 22 66 22 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). LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Total Latin Middle Other other tions ers many dom Europe America East2 Asia3 coun­ tries 1972.............................. 1,018 580 439 93 259 87 165 63 260 136 33 10 1973.............................. 1,462 761 700 310 291 100 159 66 470 132 83 16 1974.............................. 1,285 822 464 124 261 79 146 43 227 115 94 8 20 1975—Jan.r................. 1,400 840 560 223 266 71 144 58 218 118 189 11 21 Feb.r................. 1,435 770 666 336 264 66 141 57 211 119 304 9 21 Mar.r............... 1,512 794 718 396 255 67 131 57 202 120 364 9 21 Apr.r................. 1,463 620 843 521 253 68 129 57 205 121 484 10 22 May r................ 1,497 579 918 601 248 69 123 57 199 121 569 5 22 Juner................. 1,460 512 948 806 247 70 120 59 197 121 599 2 23 July r................. 1,493 432 1,060 1,041 242 77 121 61 201 121 709 5 24 Aug.r................ 1,446 372 1,074 751 243 81 120 61 202 123 719 6 23 Sept.r................ 1,468 395 1,073 753 241 79 118 61 201 121 721 6 23 Oct.r................. 1,385 311 1,072 748 241 83 118 61 206 126 712 4 24 Nov................... 1,391 297 1,093 749 261 83 115 61 206 147 712 4 24 Dec.?................. 1,757 415 1,340 951 289 100 164 61 256 140 914 6 24 1976—Jan.p................. 1,885 306 1,577 1,052 402 123 264 65 373 142 1,015 8 41 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

A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 1976 Area and country Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.* Jan.p Europe: 10 12 14 14 14 14 14 14 14 14 13 13 13 Germany.......................................... 9 9 208 209 209 209 209 210 217 216 216 215 212 Sweden............................................. 251 252 252 252 251 252 252 278 275 275 275 276 276 Switzerland...................................... 30 30 29 32 34 37 37 41 44 54 58 55 68 United Kingdom............................. 493 578 599 611 564 522 536 520 501 441 414 363 374 Other Western Europe................... r88 r74 r79 r95 r97 97 98 102 114 152 152 117 199 Eastern Europe............................... 5 5 5 5 5 5 5 5 5 5 4 4 4 885 959 1,186 1,217 1,174 1,135 1,151 1,169 1,170 1,157 1,134 1,044 1,146 Canada................................................. 713 584 588 460 412 412 408 406 404 399 400 393 393 Latin America: Latin American republics............... 12 11 11 11 11 13 13 13 13 13 33 33 33 Netherlands Antilles1...................... 83 142 130 125 118 134 178 149 149 158 160 161 159 Other Latin America....................... 5 6 5 4 4 5 5 5 5 6 6 6 7 100 159 147 140 133 152 196 167 168 177 199 200 199 Asia: Japan................................................ 3,498 3,496 3,496 3,496 3,496 3,496 3,496 3,496 3,502 3,520 3,269 3,271 3,268 Other Asia....................................... 212 541 1,071 1,121 1,291 1,397 1,418 1,498 1,648 1,798 1,849 2,075 2,195 Total......................................... 3,709 4,037 4,567 4,617 4,787 4,893 4,914 4,994 5,149 5,319 5,118 5,346 5,463 151 151 151 161 181 181 201 211 261 311 311 321 341 5,557 5,889 6,639 6,596 6,687 6,773 6,870 6,945 7,153 7,362 7,161 7,304 7,542 International and regional: International.................................... 97 226 627 419 342 29 128 66 52 324 60 322 593 Latin American regional.................. 53 51 71 69 57 44 40 35 35 35 29 29 19 Total.......................................... 150 277 699 488 399 74 169 101 87 359 89 351 612 5,708 6,167 7,337 7,084 7,087 6,847 7,039 7,048 7,240 7,721 7,250 7,655 8,154 1 Includes Surinam until Jan. 1976. year, and are based on a benchmark survey of holdings as of Jan. 31,1971, Note.—Data represent estimated official and private holdings of mar- and monthly transactions reports (see Table 14). ketable U.S. Treasury securities with an original maturity of more than 1 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 Loan:s to— Accept­ Foreign End of period Total Collec­ ances govt, se­ tions made Deposits curities, Total Official out­ for acct. Other Total with for­ coml. Other Total institu­ Banks1 Others2 stand­ of for­ eigners and fi­ tions ing eigners nance paper 1972............................. 15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973............................. 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 119 115 1974.............................. 39,030 37,835 11,301 381 7,342 3,579 5,637 11,237 9,659 1,195 668 289 238 1975—Jan..................... 39,074 37,800 10,207 361 6,289 3,557 5,565 11,062 10,966 1,274 719 351 204 Feb.................... 39,863 38,689 10,288 379 6,384 3,525 5,346 11,127 11,927 1,175 609 336 229 Mar.r............... 42,283 41,136 9,615 310 5,664 3,641 5,418 11,341 14,762 1,147 626 290 231 Apr.r................ 42,753 41,651 10,642 362 6,499 3,780 5,342 11,441 14,226 1,102 619 241 242 May r................ 45,866 44,810 11,853 366 7,636 3,852 5,537 10,959 16,460 1,056 478 301 277 Juner................ 45,710 44,497 11,347 494 6,796 4,057 5,345 10,641 17,165 1,212 591 335 286 July r................. 45,542 44,368 11,705 572 6,837 4,296 5,383 10,204 17,076 1,175 608 296 271 Aug.r................ 45,441 44,293 13,084 626 7,960 4,499 5,314 9,977 15,917 1,148 610 240 298 Sept................... 45,564 44,433 12,706 572 7,520 4,614 5,314 10,071 16,342 1,130 576 236 319 Oct.r................. 47,697 46,390 12,632 632 7,483 4,517 5,465 10,134 18,160 1,306 734 231 341 Nov................... 48,127 46,846 13,075 670 7,929 4,476 5,363 10,610 17,799 1,281 625 340 316 Dec.*................ 49,876 48,588 13,352 586 7,736 5,030 5,467 11,132 18,637 1,288 612 301 376 1976—Jan.p................. 50,889 49,646 13,691 677 8,193 4,822 5,323 11,047 19,585 1,242 693 263 286 1 Excludes central banks which are included with “Official institutions.” 2 Includes international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A67 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 1976 Area and country Dec. Apr.r May r Juner July r Aug.r Sept. Oct. Nov. Dec.p Jan.p Europe: Austria............................................... 21 16 19 17 16 28 20 19 32 15 20 Belgium-Luxembourg.............................. 384 674 647 600 620 598 536 555 463 352 401 46 53 49 64 62 60 46 50 54 49 55 Finland..................................................... 122 147 137 133 143 143 130 127 133 128 132 France...................................................... 673 859 726 584 666 741 906 1,329 1,195 1,403 1,318 Germany.................................................. 589 399 389 428 482 448 443 496 659 427 485 Greece....................................................... 64 54 37 37 46 50 54 56 91 49 55 Italy......................................................... 345 334 329 339 363 336 363 438 418 370 357 Netherlands.............................................. 348 157 221 218 288 338 313 264 285 300 316 119 114 126 98 91 106 102 102 92 71 66 Portugal.................................................... 20 26 25 25 27 22 18 15 19 16 20 196 234 251 235 257 214 245 256 261 249 274 Sweden...................................................... 180 101 132 115 155 185 182 152 182 167 124 Switzerland............................................. 335 227 277 252 254 290 214 274 314 232 244 15 37 30 40 26 43 56 54 121 86 59 United Kingdom.................................... 2,570 3,261 3,718 3,476 3,458 4,067 3,724 3,792 3,858 4,592 4,519 22 28 39 31 36 40 37 34 55 38 36 Other Western Europe........................... 22 31 25 22 22 62 23 22 25 27 26 U.S.S.R..................................................... 46 51 83 77 80 79 106 144 165 103 101 Other Eastern Europe............................. 131 113 117 118 130 110 110 96 103 114 124 Total............................................ 6,245 6,918 7,379 6,910 7,222 7,960 7,630 8,275 8,526 8,787 8,734 Canada.......................................................... 2,776 2,896 3,081 2,837 2,651 2,340 2,626 2,728 2,742 2,808 3,017 Latin America: 720 958 1,007 1,111 1.105 1,115 1,219 1,343 1,229 1,203 1,246 Bahamas .................................................. 3,398 5,714 7,738 8,660 7,813 6,627 6,432 7,250 6,856 7,513 7,645 Brazil........................................................ 1,415 1,299 1,272 1,184 1,390 1,505 1,491 1,536 1,785 2,200 2,132 Chile.......................................................... 290 433 422 429 472 435 405 351 381 360 312 713 710 702 687 666 667 684 662 649 689 651 Mexico................................................... 1,972 2,245 2,383 2,548 2,676 2,762 2,705 2,623 2,565 2,800 2,769 Panama................................................... 503 524 671 527 581 578 721 903 886 1,032 1,237 Peru.......................................................... 518 606 590 623 626 646 624 599 565 588 624 Uruguay................................................... 63 116 100 85 90 73 54 52 56 51 68 Venezuela................................................. 704 757 745 791 902 956 1,109 1,051 980 1,086 1,001 Other Latin American republics............. 866 967 972 966 1,055 1,005 1,014 1,041 969 985 1,085 Netherlands Antilles and Surinam......... 62 36 44 83 62 54 57 59 46 49 53 Other Latin America............................... 1,142 1,731 2,227 1,830 1,679 2,091 1,684 2,202 2,555 1,861 3,028 Total.................................................. 12,366 16,096 18,874 19,523 19,118 18,516 18,199 19,673 19,522 20,417 21,851 Asia: China, People’s Rep. of (China Mainland) 4 11 12 9 13 13 5 11 11 22 10 China, Republic of (Taiwan).................. 500 448 434 483 463 503 606 601 681 735 725 223 210 288 315 201 190 231 257 258 258 234 14 21 17 20 23 38 21 17 16 21 19 157 134 119 115 113 88 91 86 92 103 129 255 299 287 312 362 358 398 389 387 491 419 12,514 10,887 10,603 10,245 10,310 10,294 10,400 10,253 10,429 10,760 10,122 955 1,903 1,415 1,523 1,462 1,502 1,515 1,555 1,505 1,556 1,605 372 398 455 478 481 410 340 338 347 377 426 458 413 374 441 461 494 474 501 499 495 535 Middle East oil-exporting countries1.... 330 563 411 418 527 493 624 446 506 524 488 Other......................................................... 441 449 568 492 544 572 651 702 665 683 768 16,222 15,336 14,984 14,850 14,960 14,956 15,357 15,156 15,396 16,023 15,480 Africa: 111 142 138 149 134 141 125 127 130 104 106 329 458 475 498 489 492 504 513 540 546 547 115 95 128 120 144 134 190 207 215 233 213 300 277 276 301 297 347 343 380 409 348 348 855 973 1,018 1,068 1,064 1,114 1,162 1,227 1,294 1,231 1,214 Other countries: 466 428 440 428 446 466 509 532 554 535 502 99 107 89 81 80 88 80 105 91 73 87 565 535 528 509 526 554 589 638 645 608 589 Total foreign countries................................ 39,030 42,752 45,864 45,699 45,541 45,438 45,562 47,696 48,126 49,875 50,886 1 2 11 1 3 1 * 1 1 3 39,030 42,753 45,866 45,710 45,542 45,441 45,564 47,697 48,127 49,876 50,889 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 Comprises Algeria, Gabon, Libya, and Nigeria. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and Note.—Short-term claims are principally the following items payable their customers in the United States. Excludes foreign currencies held on demand or with a contractual maturity of not more than 1 year: loans by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Total Payable period Loans to— in Total Total Middle Other All Other foreign Europe Canada Latin Japan East3 Asia4 other long­ curren­ America coun­ Official Other term cies tries2 Total 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 1974r............... 7,183 6,494 1,333 931 4,230 609 80 1,907 501 2,613 258 384 977 542 1975—Jan.r. .. 7,295 6,643 1,370 972 4,300 583 69 1 ,992 490 2,614 248 376 1,016 560 Feb.r... 7,491 6,811 1,378 1 ,035 4,397 611 69 2,096 500 2,686 248 388 972 601 Mar.r . . 7,589 6,920 1,401 1 ,069 4,450 598 70 2,126 500 2,707 247 385 1,029 595 Apr.r... 7,619 6,935 1 ,241 1 ,117 4,578 605 78 2,188 505 2,798 242 247 1,006 633 May r... 7,906 7,215 1,283 1,198 4,733 610 81 2,325 491 2,864 254 242 1,047 683 Juner... 7,995 7,184 1,274 1 ,226 4,683 719 92 2,303 461 2,880 264 241 1,150 696 July 8,308 7,425 1,292 1,319 4,815 792 90 2,344 471 3,037 270 241 1 ,223 723 Aug.r . . 8,265 7,394 1,276 1 ,336 4,782 787 85 2,395 438 3,003 259 237 1 ,204 728 Sep........ 8,539 7,637 1,348 1 ,364 4,926 809 93 2,426 508 3,132 265 237 1 ,195 775 Oct....... 8,860 7,907 1,266 1 ,516 5,125 840 114 2,534 595 3,168 292 222 1,214 835 Nov.. . . 9,070 8,050 1,303 1,547 5,201 903 118 2,529 569 3,281 293 249 1 ,218 931 Dec... 9,436 8,385 1,380 1,707 5,299 934 116 2,662 555 3,457 296 220 1,258 987 1976—Jan.*5. .. 9,324 8,261 1 ,296 1 ,626 5,339 945 118 2,634 552 3,379 289 205 1,259 1,006 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 notes1 U.S. corporate Foreign bonds 3 Foreign stocks 3 securities 2,3 Net pure:hases or sales ( —) Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases OI Total and sales ( —) sales ( — ) sales ( —] regional 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 1974............................. -472 101 -573 -642 69 16,183 14,677 1 ,506 1,036 3,254 -2,218 1,907 1,722 185 1975............................. 1,948 201 1,747 1 ,516 230 20,309 15,202 5,107 2,387 8,687 -6,300 1,538 1,719 -182 1975—Jan................... 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 >-117 r546 r_ 429 134 173 -39 Mar.................. 1,171 421 749 724 25 1 ,760 1 ,155 604 r195 647 -452 148 159 -11 Apr.................. -254 -210 -43 -62 20 1,640 1,397 243 167 r338 r —171 155 141 14 May................. 3 -89 92 123 -31 1,846 1,679 167 172 345 —173 145 157 -12 June................. -240 -326 86 56 31 1,754 1,332 422 215 r852 r —637 129 143 -15 July.................. 192 95 96 41 56 2,251 1,278 973 315 ’•1,008 -693 109 119 -10 Aug.................. 9 -67 77 117 -40 1 ,421 1,338 82 158 >-318 r —160 89 256 -167 Sept.................. 192 -14 206 175 31 1,257 1,124 rl 34 194 '285 r_91 91 79 11 Oct................... 481 272 209 173 37 2,023 1,362 662 195 678 -484 137 161 -24 Nov.................. -470 -270 -201 -171 -30 1,605 1,231 374 248 991 -743 107 78 29 Dec.p............... 405 262 143 121 21 1,808 947 860 282 1,471 -1,190 148 97 51 1976—Jan.**............... 498 261 237 241 -4 2,790 2,369 421 462 789 -328 145 139 6 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Middle East Africa official institutions of foreign countries. 2 Includes State and local govt, securities, and securities of U.S. Govt, 1975 ^ 1,773 170 agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments 1975—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 Nov. 51 Dec.p 176 10 1976—Jan.P 115 20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A69 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 Asia2 Other3 sales (—) dom Latin 197 3 12,767 9,978 2,790 439 2 339 686 366 2,104 99 , 4 577 5 197 4 7,634 7,095 540 203 39 330 36 -377 281 -6 -33 288 10 197 5 15,036 10,600 4,435 262 250 359 897 569 2,464 356 .-7 1,440 140 39 1975—Jan.. . . 748 554 193 36 17 42 111 12 -15 86 -3 2 Feb.... 1,420 891 529 21 25 14 115 147 331 20 13 153 -4 15 Mar..., 1 ,152 913 240 12 15 40 39 38 150 15 -5 85 -6 * Apr.... 1,318 1,058 259 -15 23 26 44 54 136 -5 2 119 2 5 May... 1 ,527 1,149 378 -6 4 27 100 59 193 36 1 113 36 -2 June... 1,321 1,063 258 32 1 19 71 36 152 21 8 87 9 -19 July.. . 1,669 1,080 589 55 31 80 139 75 396 20 13 153 2 6 Aug---- 1,153 712 441 52 52 47 83 38 302 21 -6 82 26 16 Sept..., 882 642 240 10 7 22 64 7 123 20 -15 72 32 8 Oct.. .. 1,407 1,042 365 16 -7 17 36 48 142 59 7 130 21 6 Nov.... 1,114 809 304 22 40 -5 42 44 132 36 -1 122 12 4 Dec.*.. 1,325 686 639 28 40 64 123 32 297 102 -9 238 13 -2 1976—Jan.*. . 2,026 1,536 491 136 -48 88 207 40 76 174 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 Nether­Switzer­ United Total Total Middle Other Total Other Intl. and Period Total France many lands land Kingdom Europe Canada Latin East1 Asia2 Africa countries regional America 1973..................... 1,948 201 -33 -19 307 275 1,204 49 44 588 * 10 52 1974r................... 993 96 28 183 96 373 719 45 43 632 * 10 -456 1975..................... 671 82 -11 -16 116 80 116 127 30 1,426 -42 5 1 -993 1975—Jan........... 140 2 3 * 6 59 94 14 -1 151 1 * * -120 Feb........... -275 -4 3 * 3 -91 -87 16 * 35 1 * 1 -241 Mar.......... 365 1 -1 -1 10 23 32 4 -4 341 -19 * * 10 Apr........... -16 1 2 -26 35 -99 -100 5 3 80 1 * * -6 May.......... -212 3 1 -1 7 -81 -72 7 1 81 -11 * * -218 June.......... 164 9 * 8 5 32 58 4 * 65 -1 * * 38 July.......... 384 27 16 6 35 80 183 33 1 179 4 * * -17 Aug.......... -358 13 -3 -18 -6 -69 -73 6 1 -1 1 * * -292 Sept.......... -107 -13 6 25 -7 121 -19 -5 5 82 -7 * * -162 Oct........... 296 1 -50 2 12 89 51 38 11 209 -4 3 * -11 Nov.......... 69 39 8 -17 9 -41 -25 -2 6 75 4 1 * 11 Dec.*. , 221 2 3 3 8 56 74 6 6 130 -12 1 * 16 1976—Jan.*. -69 5 -1 1 35 -30 -9 29 3 -47 -21 -2 -10 -13 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 di­ rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1973............... -818 139 -957 -141 -569 -120 -168 3 37 1973—June. 316 243 1974r............. -2,033 -60 -1,973 -546 -1,508 -93 144 7 22 Sept.. 290 255 1975................ -6,480 -2,192 -4,290 -48 -3,173 -308 -618 14 -154 Dec.. 333 231 1975—Janr. .. -1,085 -572 -514 -41 -405 -28 -60 20 * 1974—Mar.. 383 225 Feb.'. . -468 -147 -321 19 -152 -97 -94 2 * June. 354 241 Mar.r.. -463 -106 -358 -66 -176 -3 -112 -2 1 Sept.. 298 178 Apr.r. . -157 -57 -100 -57 -3 17 -59 * 2 Dec.. 293 194 May r. . -184 31 -215 39 -167 * -88 —2 2 Juner.. -652 * -652 -22 -475 * -30 2 -127 1975—Mar.. 349 209 July r... -703 -475 -229 -26 -113 -25 -69 * 4 June. 380 233 Aug.r.. -327 12 -339 24 -199 -164 1 1 2 Sept.. 343 258 Sept.r.. -80 18 -98 -19 -129 25 24 -1 1 Dec.* 364 319 Oct...... -508 5 -513 48 -460 -48 -56 -3 6 Nov.... -714 -62 -652 -27 -584 6 3 -2 -48 Dec.*. . -1,139 -839 -299 80 -310 9 -78 -1 1 Note.—Data represent the money credit balances and money debit balances appearing on the books of reporting 1976—Jan.*... -321 94 -415 -109 -293 -9 -4 -3 2 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies......................... 1972—Dec........... 78,202 4,678 2,113 2,565 71,304 11,504 35,773 1,594 22,432 2,220 1973—Dec........... 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—Dec.r........ 151,905 6,900 4,464 2,435 138,712 27,559 60,283 4,077 46,793 6,294 1975—Jan.r........ 151,140 7,031 4,360 2,671 138,141 27,894 58,863 4,152 47,233 5,968 Feb.'........ 151,662 5,487 2,882 2,605 140,343 28,969 58,794 4,246 48,334 5,832 Mar.'....... 155,204 5,328 2,638 2,689 143,749 28,330 61,611 4,407 49,400 6,127 Apr.'........ 155,616 5,832 3,052 2,780 143,948 29,195 60,292 4,353 50,108 5,836 May r........ 156,909 7,727 4,889 2,838 143,099 27,581 60,330 4,494 50,695 6,083 June '........ 162,342 5,540 2,342 3,198 150,515 30,870 63,710 4,836 51,100 6,287 July '........ 160,703 5,919 2,788 3,131 148,224 30,153 62,438 4,796 50,837 6,561 Aug.'........ 165,835 9,102 6,048 3,054 150,196 31,283 62,455 4,892 51,566 6,537 Sept.'....... 166,075 6,574 3,267 3,307 153,169 31,506 65,011 4,861 51,792 6,332 Oct.'........ 169,456 7,919 4,892 3,027 155,043 32,675 64,209 5,226 52,933 6,494 Nov.'....... 172,408 8,691 5,763 2,928 156,938 34,325 64,347 5,504 52,762 6,779 Dec.*........ 175,878 6,703 3,642 3,061 162,904 35,320 68,338 5,869 53,378 6,271 Payable in U.S. dollars. 1972—Dec........... 52,636 4,419 2,091 2,327 47,444 7,869 26,251 1,059 12,264 773 1973—Dec........... 79,445 4,599 1,848 2,751 73,018 12,799 39,527 1,777 18,915 1,828 1974—Dec.'........ 105,969 6,603 4,428 2,175 96,209 19,688 45,067 3,289 28,164 3,157 1975— Jan.'........ 105,776 6,707 4,318 2,389 95,987 20,448 43,151 3,370 29,018 3,082 Feb.r........ 104,360 5,143 2,839 2,304 96,326 20,827 42,672 3,431 29,395 2,891 Mar.'....... 107,519 5,014 2,607 2,407 99,635 19,836 46,118 3,604 30,078 2,870 Apr.'........ 108,399 5,467 3,009 2,458 100,230 20,993 45,172 3,599 30,465 2,702 May r........ 111,638 7,318 4,825 2,493 101,383 21,281 45,403 3,685 31,015 2,938 June '........ 117,296 5,113 2,280 2,833 109,180 24,529 49,132 3,949 31,569 3,003 July r........ 117,268 5,513 2,737 2,776 108,279 24,180 48,572 3,929 31,598 3,476 Aug.'........ 121,478 8,778 5,995 2,783 109,423 25,071 48,063 4,148 32,141 3,277 Sept.'....... 123,119 6,237 3,210 3,027 113,925 25,444 51,470 4,040 32,970 2,957 Oct.r........ 125,870 7,501 4,817 2,684 115,191 26,555 50,028 4,363 34,246 3,178 Nov.......... 129,121 8,336 5,711 2,625 117,504 27,899 50,962 4,646 33,998 3,281 Dec.p........ 132,164 6,368 3,604 2,764 122,796 28,544 54,728 4,945 34,579 3,000 IN UNITED KINGDOM Total, all currencies.......... , 1972—Dec........... 43,467 2,234 1,138 1,096 40,214 5,659 23,842 606 10,106 1,018 1973—Dec........... 61,732 1,789 738 1,051 57,761 8,773 34,442 735 13,811 2,183 1974—Dec........... 69,804 3,248 2,472 776 64,111 12,724 32,701 788 17,898 2,445 1975—Jan............ 68,451 2,633 1,902 731 63,527 12,873 32,057 854 17,743 2,291 Feb........... 67,038 1,818 1,023 796 63,250 13,246 31,641 848 17,515 1,970 Mar........... 69,654 1,798 982 817 65,693 12,806 34,260 929 17,699 2,163 Apr........... 69,248 2,017 1 ,126 891 65,330 13,314 33,079 919 18,018 1,902 May.......... 68,707 2,535 1,689 845 64,269 12,491 32,443 920 18,415 1,904 June.......... 70,751 1,834 641 1,192 66,868 13,765 34,634 948 17,522 2,049 July........... 70,382 1,904 807 1,097 66,277 14,414 33,431 923 17,509 2,202 Aug........... 72,455 3,795 2,698 1,097 66,428 15,213 32,998 948 17,268 2,232 Sept........... 72,120 2,042 1,076 967 67,923 15,249 34,759 825 17,091 2,155 Oct............ 72,742 2,681 1,699 982 67,631 16,555 32,806 830 17,440 2,430 Nov........... 73,924 3,112 2,137 975 68,494 17,549 33,189 852 16,904 2,319 Dec.p , „ 74,853 2,375 1,449 926 70,324 17,557 35,102 881 16,784 2,153 Payable in U.S. dollars. . 1972—Dec........... 30,257 2,146 1,131 1,015 27,664 4,326 17,331 543 5,464 446 1973—Dec........... 40,323 1,642 730 912 37,816 6,509 23,389 510 7,409 865 1974—Dec........... 49,211 3,146 2,468 678 44,693 10,265 23,716 610 10,102 1,372 1975—Jan............ 47,769 2,542 1,892 650 43,959 10,421 22,610 661 10,268 1,267 Feb........... 46,019 1,697 1,017 680 43,244 10,615 21,918 657 10,055 1,077 Mar........... 48,939 1,687 974 713 46,039 10,373 24,874 736 10,057 1,212 Apr........... 48,797 1,885 1,109 776 45,923 10,995 23,990 721 10,217 989 May.......... 48,506 2,404 1,671 733 45,180 10,656 23,320 698 10,506 922 June.......... 51,365 1,669 623 1,045 48,713 12,054 25,761 721 10,178 983 July........... 51,665 1,742 793 949 48,787 12,664 25,143 713 10,267 1 ,136 Aug........... 53,456 3,661 2,681 980 48,763 13,315 24.540 740 10,168 1,032 Sept........... 54,256 1,910 1 ,054 856 51,369 13,488 27,008 596 10,277 977 Oct............ 54,192 2,552 1 ,687 865 50,494 14,654 24,691 592 10,557 1,146 Nov........... 56,221 2,988 2,123 865 52,145 15,555 25,600 638 10,353 1,087 Dec.p........ 57,331 2,257 1,445 812 54,107 15,645 27,669 648 10,145 967 IN BAHAMAS AND CAYMANS * Total, all currencies......................... . 1972—Dec........... 12,642 1,486 214 1,272 10,986 725 5,507 431 4,322 170 1973—Dec........... 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 520 1974—Dec.r........ 31,733 2,464 1,081 1,383 28,453 3,478 11,354 2,022 11,599 815 1975—Jan.'........ 33,131 3,225 1,594 1,630 29,069 3,644 11,194 2,027 12,205 838 Feb.' 33,534 2,565 1,072 1,493 30,135 3,855 11,474 2,060 12,747 834 Mar.r....... 33,793 2,407 839 1,568 30,670 3,568 11,634 2,393 13,075 716 Apr.'........ 35,666 2,588 1,006 1,582 32,358 4,320 12,229 2,419 13,390 720 May r........ 38,198 4,126 2,468 1,658 33,214 4,270 13,181 2,531 13,232 858 June r........ 39,646 2,634 987 1,647 36,181 5,831 13,747 2,772 13,831 831 July'........ 39,614 2,787 1,134 1,653 35,676 5,015 14,065 2,747 13,849 1,150 Aug.'....... 41,624 4,117 2,580 1,536 36,555 5,222 14,117 2,891 14,324 953 Sept.'....... 41,601 3,189 1,289 1,900 37,479 5,220 14,604 3,020 14,635 933 Oct.'........ 44,166 3,989 2,295 1,694 39,225 5,604 15,414 3,308 14,899 952 Nov.......... 44,471 4,544 2,929 1,615 38,973 5,321 15,134 3,434 15,084 954 Dec.?........ 245,203 3,229 1,477 1,752 41,040 5,411 16,298 3,576 15,756 933 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners Other Offi­ Non­ Other Month-end Location and currency form Total branches Other cial bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 78, 72,121 11,121 41,218 8,351 11,432 2,580 .........1972-—Dec. .. .Total, all currencies 121, 111,615 18,213 65,389 10,330 17,683 4,641 .........1973-—Dec. 151, 132,990 26,941 65,675 20,185 20,189 6,933 .........1974—Dec. 151, 132,775 27,019 64,147 21,683 19,926 6,533 .........1975-—Jan. 151, 132,594 28,185 63,402 21,951 19,057 6,507 .Feb. 155, 133,540 28,214 63,419 22,577 19,330 6,257 155. 134,594 29,192 62,287 23,236 19,879 6,088 156, 133,806 26,125 64,700 22,223 20,158 6,243 162, 137,189 30,412 64,955 21,106 20,715 6,535 160; 136,808 30,233 65,956 20,371 20,249 6,191 .July 165; 142,327 30,582 70,161 21,093 20,492 6,326 166! 141,102 30,314 70,756 19,744 20,289 6,149 169! 143,629 31,781 70,353 20,627 20,868 6,174 172: 145,121 33,188 70,408 21,187 20,337 6,742 175; 149,417 34,145 71,985 22,761 20,526 6,346 54 50,406 7,955 29,229 6,781 6,441 1,422 .........1972-—Dec. .Payable in U.S. dollars 80 73,189 12,554 43,641 7,491 9,502 2,158 .........1973-—Dec. 107 92,503 19,330 43,656 17,444 12,072 3,951 108 93,044 19,999 42,854 18,343 11,848 3,778 .........1975-—Jan. 106; 90,426 20,109 40,701 18,708 10,907 3,636 109 91,338 19,880 41,216 19,303 10,939 3,368 lio; 92,715 20,683 40,999 19,909 11,123 3,414 114; 94,452 20,521 43,863 18,928 11,139 3,397 119; 97,828 23,969 44,202 17,968 11,689 3,560 119 99,013 24,112 45,897 17,393 11,611 3,216 123 103,987 24,435 49,418 18,080 12,055 3,381 125 104,062 24,477 50,682 16,777 12,126 3,187 127 105,589 25,824 49,724 17,476 12,565 3,364 131 108,269 27,054 50,292 18,407 12,515 3,865 134 112,078 27,615 51,325 19,982 13,157 3,450 IN UNITED KINGDOM 43 41,020 2,961 24,596 6,433 7,030 994 .........1972-—Dec. .. .Total, all currencies 61 57,311 3,944 34,979 8,140 10,248 1,990 .........1973-—Dec. 69 63,409 4,762 32,040 15,258 11,349 2,418 .........1974-—Dec. 68 62,360 4,567 30,266 16,419 11,108 2,287 .........1975-—Jan. 67 60,546 4,693 29,207 16,517 10,127 2,117 69 62,363 4,630 29,990 17,305 10,438 2,196 69 62,625 5,394 28,666 17,812 10,753 2,026 68 61,772 5,325 28,957 16,726 10,764 2,164 70 63,857 7,030 30,030 15,524 11,274 2,226 70 63,501 6,475 30,636 15,312 11,077 2,203 12 65,012 6,260 32,097 15,617 11,038 2,194 .Aug. 72, 64,462 6,396 33,130 14,486 10,450 2,046 12, 65,119 6,746 32,334 14,909 11,130 2,138 73; 65,493 6,470 33,340 15,180 10,502 2,161 74: 67,261 6,494 32,985 16,553 11,229 1,949 30 j 29,002 2,008 17,379 5,329 4,287 535 .........1972-—Dec. . Payable in U.S. dollars 39, 36,646 2,519 22,051 5,923 6,152 870 .........1973-—Dec. 49, 44,594 3,256 20,526 13,225 7,587 1,328 .........1974-—Dec. 48, 43,578 3,172 19,061 13,736 7,609 1 ,313 .........1975-—Jan. 46, 41,350 3,266 17,673 13,932 6,479 1,184 49, 43,546 3,072 19,128 14,688 6,658 1,183 49, 43,758 3,886 17,997 15,158 6,717 1,122 49, 43,784 4,220 18,640 14,135 6,789 1,208 51, 46,312 5,962 20,039 13,083 7,228 1,167 .June 51 , 46,217 5,478 20,775 12,915 7,049 1 ,188 .July 54, 47,912 5,288 22,087 13,249 7,287 1,129 . Aug. 54, 48,314 5,456. 23,645 12,182 7,031 980 54, 48,079 5,708 22,452 12,500 7,419 1,123 56, 49,411 5,478 23,641 12,999 7,293 1,223 57, 51,466 5,442 23,349 14,498 8,176 910 IN BAHAMAS AND CAYMANS 1 12, 11,260 1,818 7,875 230 1,338 163 ........1972--Dec. .. .Total, all currencies 23, 21,747 5,508 14,071 492 1,676 451 -Dec. 31, 26,140 7,702 14,050 2,377 2,011 778 -Dec. 33, 27,343 8,269 14,259 2,595 2,220 752 -Jan. 33: 27,498 8,975 13,550 2,711 2,262 793 .Feb. 33, 25,875 8,498 12,614 2,520 2,243 690 .Mar. 35 27,536 8,756 13,694 2,769 2,318 711 .Apr. 38 28,309 6,872 16,018 2,977 2,441 799 .May 39 27,987 8,075 14,482 3,036 2,393 793 .June 39 28,933 8,401 15,539 2,500 2,492 690 .July 41 31,913 9,128 17,317 2,860 2,607 911 .Aug. 41 30,861 8,918 16,834 2,570 2,540 812 .Sept. 44 32,327 9,725 17,296 2,775 2,577 961 44 32,239 10,553 15,972 3,230 2,483 1,150 2 4S 32,950 10,569 16,726 3,308 2,348 1,106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 IN I L. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 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 E p n er d i o o d f Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked E pe n r d i o o d f Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ U K d n i o n i m t g ed ­ Canada ments 1 ments 1 197 2 325 50,934 215,530 197 3 251 52,070 217,068 1971.................... 1,507 1,078 127 234 68 580 443 197 4 418 55,600 16,838 J 975—Feb.. 409 60,864 16,818 1 07') 9 / 1 l 2 , ,3 9 7 6 4 5 1 1 , , 4 9 4 1 6 0 16 5 9 5 3 30 4 7 0 4 68 2 9 7 1 0 1 2 4 5 8 3 5 6 Mar.. 402 60,729 16,818 1973................... 3,162 2,588 37 427 109 1,118 770 Apr... 270 60,618 16,818 May. 310 61,539 16,818 1974—Nov........ 2,998 2,380 15 326 277 1,285 941 June.. 373 61,406 16.803 Dec......... 3,311 2,582 56 412 261 1,350 951 July.. 369 60,999 16.803 Aug.. 342 60,120 16.803 1975—Jan.......... 3,275 2,521 50 359 345 1,145 1,117 Sept.. 324 58,420 16,795 Feb......... 3,376 2,515 52 403 406 1,088 1,136 Oct... 297 60,307 16,751 Mar......... 3,283 2,434 67 395 388 1,064 1,134 Nov.. 346 60,512 16.745 Apr......... 3,368 2,458 48 314 550 1,065 1,279 Dec.. 352 60,019 16.745 May........ 3,188 2,220 47 393 527 908 1,240 June........ 3,138 2,241 95 369 433 974 1,128 1976—Jan... 294 61,796 16,669 July........ 3,221 2,278 118 420 405 904 1,109 Feb... 412 62,640 16,666 Aug......... 3,438 2,334 129 453 522 1,017 1,309 Sept......... 3,602 2,522 125 456 499 1,104 1,252 Oct.*___ 3,411 2,581 179 410 241 1,178 1 ,127 1 Marketable U.S. Treasury bills, certificates of in­ Nov.*__ 3,543 2,571 266 442 264 1,098 1,291 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand 2 The value of earmarked gold increased because of the or having a contractual maturity of not more than 1 year from the date on which the 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. Ear­ marked 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 1972—Mar..................... 2,844 2,407 437 5,173 4,557 317 300 June..................... 2,925 2,452 472 5,326 4,685 374 268 Sept...................... 2,933 2,435 498 5,487 4,833 426 228 Dec.1................... J \ 3 3, , 1 3 1 9 9 7 2 2 , , 6 9 3 2 5 8 4 4 6 8 9 4 5 6 , , 7 3 2 0 1 4 5 5 , , 0 6 7 4 4 5 4 3 1 93 0 2 2 3 6 7 7 1973—Mar...................... 3,308 2,836 472 7,019 6,150 456 414 June..................... 3,283 2,760 523 7,292 6,451 493 349 Sept...................... 3,567 2,919 648 7,627 6,701 528 399 Dec....................... 3,964 3,257 707 8,463 7,553 485 425 1974—Mar...................... 4,373 3,564 809 10,458 9,525 400 533 June..................... 5,101 4,158 943 11,022 10,104 420 498 Sept...................... 5,567 4,634 933 10,681 9,720 419 543 Dec....................... 5,769 4,855 914 11,233 10,190 455 587 1975—Mar...................... 5,734 4,868 866 10,878 9,744 441 692 June r................... 5,746 4,922 824 10,827 9,546 466 815 Sept.*................... 5,804 4,967 837 11,845 10,505 507 832 1 Data on the 2 lines shown for this date differ preceding date; figures on the second line are compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A73 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 Sept. Dec. Mar. June Sept.? Sept. Dec. Mar. June Sept.p Europe: Austria.................................................... 18 20 26 22 18 15 26 15 13 15 Belgium-Luxembourg........................... 501 516 474 338 332 114 128 137 132 131 Denmark................................................ 22 24 23 14 8 25 42 35 22 24 12 16 16 12 14 91 120 77 87 114 France.................................................... 157 202 151 138 149 461 430 328 287 311 240 313 350 291 275 326 339 276 346 319 28 39 25 27 21 69 65 59 69 56 Italy........................................................ 129 125 109 110 156 413 397 309 300 380 120 117 121 141 153 144 148 157 135 139 Norway.................................................. 10 9 9 8 13 32 36 35 41 48 20 19 13 13 13 69 81 42 32 39 Spain...................................................... 46 56 54 59 74 414 369 359 324 315 Sweden................................................... 40 38 32 30 47 97 89 66 74 100 106 140 157 168 167 154 136 86 113 220 Turkey.................................................... 20 8 12 14 22 24 26 33 28 31 United Kingdom................................... 1,408 1,222 1,110 1,006 895 1,763 1,853 1,642 1,542 1,769 Yugoslavia.............................................. 17 40 52 45 60 23 22 33 32 24 Other Western Europe.......................... 7 5 5 4 5 20 21 23 16 19 Eastern Europe...................................... 80 70 54 49 38 90 142 114 153 170 Total................................................ 2,981 2,979 2,794 2,487 2,461 4,344 4,469 3,825 3,748 4,225 Canada....................................................... 296 298 258 274 286 1,571 1,610 1,860 1,950 2,104 Latin America: 28 36 31 30 28 59 69 76 65 53 Bahamas................................................. 325 281 299 267 190 518 594 615 631 685 Brazil...................................................... 160 118 121 127 116 419 461 376 347 384 Chile....................................................... 14 22 23 15 13 124 106 69 57 41 Colombia................................................ 13 14 11 11 14 49 51 51 47 46 Cuba....................................................... * * * * * 1 1 1 * 1 64 63 72 74 84 287 297 325 305 299 Panama.................................................. 21 28 18 27 19 114 132 110 128 103 15 14 18 16 19 40 44 46 50 48 2 2 3 3 2 6 5 15 5 5 Venezuela............................................... 53 49 39 44 54 190 190 180 166 151 Other L.A. republics............................. 63 83 65 67 75 182 193 195 179 163 8 24 48 54 72 14 20 16 13 13 50 81 114 125 115 169 147 196 159 192 818 816 862 859 801 2,169 2,308 2,271 2,152 2,183 Asia: China, People’s Republic of (China Mainland).......................................... 23 17 8 6 2 8 17 19 32 45 72 93 102 100 101 127 137 121 125 355 Hong Kong............................................ 18 19 19 30 29 64 63 83 85 84 India....................................................... 10 7 10 21 21 37 37 32 39 48 Indonesia................................................ 38 60 63 87 105 81 85 110 142 129 Israel....................................................... 40 50 62 62 45 53 44 46 60 63 Japan...................................................... 352 348 327 273 278 1,158 1,218 1,307 1,226 1,234 Korea...................................................... 66 75 47 43 63 123 201 165 178 207 Philippines.............................................. 28 25 19 17 14 108 93 82 91 91 Thailand................................................. 10 10 9 6 8 23 24 30 25 21 Other Asia.............................................. 431 536 645 845 908 311 387 398 470 535 Total................................................ 1,087 1,239 1,312 1,491 1,575 2,093 2,307 2,392 2,472 2,814 Africa: Egypt...................................................... 6 3 5 34 34 16 15 24 15 16 South Africa.......................................... 35 43 54 65 79 90 101 104 104 79 Zaire........................................................ 17 18 17 9 9 13 24 18 17 22 Other Africa.......................................... 114 129 142 215 220 205 234 242 227 273 Total.............................................. 172 193 217 323 341 325 374 387 364 391 Other countries: Australia................................................ 57 56 60 37 52 134 116 97 101 80 All other................................................. 32 30 31 18 21 44 49 45 39 50 Total............................................... 89 86 91 55 73 178 165 141 139 128 International and regional........................ 125 158 201 257 267 1 * 1 1 Grand total..................................... 5,567 5,769 5,734 5,746 5,804 10,681 11,233 10,878 10,827 11,845 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

A74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1976 24.LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area Total End of period liabilities Total Other K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A L m a e t r i i n ca Japan O A t s h i e a r Africa o A th l e l r 1971—Sept.. 2,939 3,019 135 672 765 178 60 597 133 319 85 75 Dec.1 / \ 3 3 , , 1 1 3 5 8 9 3 3 , , 1 06 18 8 1 1 2 28 8 7 7 0 0 5 4 7 7 6 1 1 7 1 1 7 7 4 4 6 6 0 0 6 65 5 3 2 1 1 4 3 1 6 3 3 2 2 7 5 8 8 6 6 8 85 4 1972—June. 3,300 3.206 108 712 748 188 61 671 161 377 86 93 Sept.. 3,448 3,187 128 695 757 177 63 662 132 390 89 96 Dec.1 / 1 3 3 , , 5 6 4 0 0 0 3 3 , , 3 2 1 8 2 4 1 1 9 6 1 3 7 7 4 1 5 5 7 75 7 9 5 1 1 8 8 7 4 6 6 4 0 6 7 5 0 8 3 1 1 3 5 3 6 4 3 0 7 6 8 8 8 7 6 10 3 9 8 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 3,814 369 737 194 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. r4,068 *•4,063 299 r632 r\ ,018 rl 82 154 939 98 536 138 68 Sept.. 4,014 4.206 362 618 1,037 177 222 895 95 586 146 67 1 Data on the 2 lines shown for this data differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. 25. OPEN MARKET RATES (Per cent per annum) Germany, Switzer­ Canada United Kingdom France Fed. Rep. of Netherlands land Month Treasury Day-to- Prime Treasury Day-to- Clearing Day-to- Treasury Day-to- Treasury Day-to- Private bills, day bank bills, day banks’ day bills, day bills, day discount 3 months1 money 2 bills, 3 months money deposit money3 60-90 money 5 3 months money rate 3 months rates days4 1973....................... 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974....................... 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 1975....................... 7.36 7.34 10.57 10.16 10.13 7.23 7.89 3.51 4.23 4.41 3.65 6.25 1975—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 6.59 6.68 9.41 9.26 7.50 7.09 8.34 3.38 4.62 5.16 4.13 6.50 May............ 6.89 6.88 10.00 9.47 7.81 6.25 7.56 3.38 5.32 3.64 1.98 6.50 June............ 6.96 6.88 9.72 9.43 7.00 6.25 7.31 3.38 4.91 2.76 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 2.89 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.............. 8.28 7.92 11.38 11.42 9.88 6.93 6.53 3.13 3.27 4.22 4.35 5.50 Nov............. 8.44 8.29 11.21 11.10 11.34 7.00 6.74 3.13 3.36 4.67 4.19 5.50 Dec.............. 8.59 8.66 10.88 10.82 9.61 7.00 6.42 3.13 3.84 4.88 4.34 5.50 1976—Jan.............. 8.59 8.75 9.83 9.87 9.08 6.38 3.13 3.58 4.52 3.76 5.00 Feb............. 7.27 5.00 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $41,887 million and $42,197 million, respectively, on Dec. 31, 1975. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1976 □ CENTRAL BANK AND EXCHANGE RATES A75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of February 29, 1976 Rate as of February 29, 1976 Country Country Per Month Per Month cent effective cent effective Argentina................................. 18.0 Feb. 1972 8.0 Feb. 1976 Austria...................................... 5.0 Jan. 1976 Japan..................................... 6.5 Oct. 1975 Belgium..................................... 6.0 Aug. 1975 4.5 June 1942 Brazil........................ 18.0 Feb. 1972 Netherlands.......................... 4.0 Feb. 1976 Canada..................................... 9.0 Sept. 1975 5.0 Oct. 1975 Denmark.................................. 7.5 Aug. 1975 5.5 Jan. 1976 France...................................... 8.0 Sept. 1975 Switzerland........................... 2.5 Jan. 1976 Germany, Fed. Rep. of........... 3.5 Sept. 1975 United Kingdom................. 9.25 Feb. 1976 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, Al/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) 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 1975.................... 130.77 5.7467 2.7253 98.297 17.437 23.354 40.729 11.926 222.16 .15328 .33705 1975—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 Dec.......... 125.38 5.3986 2.5311 98.627 16.253 22.428 38.144 11.134 202.21 .14645 .32715 1976—Jan........... 125.65 5.4300 2.5443 99.359 16.231 22.339 38.425 11.178 202.86 .14245 .32826 Feb........... 125.85 5.4628 2.5554 100.652 16.278 22.351 39.034 11.186 202.62 .13021 .33157 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) 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 1975..................... 41.753 8.0000 39.632 121.16 19.180 3.9286 136.47 1.7424 24.141 38.743 222.16 1975—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 38.929 8.0000 37.638 104.75 18.116 3.7318 114.69 1.6869 22.788 37.683 204.84 Dec.......... 38.670 8.0000 37.234 103.77 17.988 3.6836 114.75 1.6765 22.685 37.970 202.21 1976—Jan........... 38.696 8.0000 37.429 104.06 17.992 3.6562 114.80 1.6751 22.831 38.418 202.86 Feb........... 38.998 8.0000 37.529 104.25 18.098 3.6394 114.79 1.5523 22.861 38.912 202.62 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman Stephen S. Gardner, Vice Chairman Robert C. Holland Henry C. Wallich Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee OFFICE OF STAFF DIRECTOR OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR FOR MANAGEMENT MONETARY POLICY Thomas J. O’Connell, Counsel to the John M. Denkler, Staff Director Chairman Stephen H. Axilrod, Staff Director Robert J. Lawrence, Deputy Staff Robert Solomon, Adviser to the Board Arthur L. Broida, Deputy Staff Director Director Joseph R. Coyne, Assistant to the Board Stanley J. Sigel, Assistant to the Board Gordon B. Grimwood, Assistant Director Kenneth A. Guenther, Assistant to the Board Murray Altmann, Special Assistant to the and Program Director for Jay Paul Brenneman, Special Assistant to the Board Contingency Planning Board Norm and R. V. Bernard, Special Assistant to William W. Layton, Director of Equal Frank O’Brien, Jr., Special Assistant to the the Board Employment Opportunity Board Brenton C. Leavitt, Program Director for Donald J. Winn, Special Assistant to the DIVISION OF RESEARCH AND STATISTICS Banking Structure Board Peter E. Barn a, Program Director for Lyle E. Gramley, Director Bank Holding Company Analysis 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 John D. Hawke, Jr., General Counsel John J. Mingo, Associate Adviser Baldwin B. Tuttle, Deputy General Eleanor J. Stockwell, Associate Adviser DIVISION OF FEDERAL RESERVE BANK Counsel Helmut F. Wendel, Associate Adviser OPERATIONS Robert E. Mannion, Assistant General James R. Wetzel, Associate Adviser Counsel Jared J. Enzler, Assistant Adviser James R. Kudlinski, Director Allen L. Raiken, Assistant General Counsel Robert M. Fisher, Assistant Adviser Walter A. Althausen, Assistant Director Gary M. Welsh, Assistant General Counsel J. Cortland G. Peret, Assistant Adviser Brian M. Carey, Assistant Director Charles R. McNeill, Assistant to the Stephen P. Taylor, Assistant Adviser Harry A. Guinter, Assistant Director General Counsel Levon H. Garabedian, Assistant Director A76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF FEDERAL RESERVE BANK OFFICE OF SAVER AND CONSUMER AFFAIRS DIVISION OF INTERNATIONAL FINANCE EXAMINATIONS AND BUDGETS Frederic Solomon, Assistant to the tR alph C. Bryant, Director William H. Wallace, Director Board and Director John E. Reynolds, Acting Director Albert R. Hamilton, Associate Director Janet O. Hart, Deputy Director Robert F. Gemmill, Adviser Clyde H. Farnsworth, Jr., Assistant Director Jerauld C. Kluckman, Assistant Director Reed J. Irvine, Adviser Thomas E. Mead, Assistant Director Robert S. Plotkin, Assistant Director 1*Helen B. Junz, Adviser P. D. Ring, Assistant Director Samuel Pizer, Adviser OFFICE OF THE SECRETARY George B. Henry, Associate Adviser DIVISION OF DATA PROCESSING Charles J. Siegman, Associate Adviser Charles L. Hampton, Director Theodore E. Allison, Secretary Edwin M. Truman, Associate Adviser Bruce M. Beardsley, Associate Director * Joseph P. Garbarini, Assistant Secretary Glenn L. Cummins, Assistant Director Griffith L. Garwood, Assistant Secretary Warren N. Min ami, Assistant Director Robert J. Zemel, Assistant Director DIVISION OF BANKING SUPERVISION tOn leave of absence. AND REGULATION DIVISION OF PERSONNEL Brenton C. Leavitt, Director Keith D. Engstrom, Director Frederick R. Dahl, Assistant Director Charles W. Wood, Assistant Director J Jo ac h k n M N. . L Eg y e o r n t , s A o s n s , is A ta s n si t s t D an ir t e c D to ir r e ctor John T. McClintock, Assistant Director OFFICE OF THE CONTROLLER John E. Ryan, Assistant Director Thomas A. Sidman, Assistant Director John Kakalec, Controller William W. Wiles, Assistant Director Tyler E. Williams, Jr., Assistant Controller DIVISION OF ADMINISTRATIVE SERVICES *On loan from the Federal Reserve Bank of St. Louis. Walter W. Kreimann, Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director A77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Open Market Committee Arthur F. Burns, Chairman Paul A. Volcker, Vice Chairman John J. Balles Stephen S. Gardner J. Charles Partee Robert P. Black Robert C. Holland Henry C. Wallich Philip E. Coldwell Philip C. Jackson, Jr. Willis J. Winn Monroe Kimbrel Arthur L. Broida, Secretary Lyle E. Gramley, Economist Murray Altmann, Deputy Secretary (Domestic Business) Normand R. V. Bernard, Assistant Harry Brandt, Associate Economist Secretary Richard G. Davis, Associate Economist Thomas J. O’Connell, General Counsel William J. Hocter, Associate Economist Edward G. Guy, Deputy General Counsel Michael W. Keran, Associate Economist Baldwin B. Tuttle, Assistant General James L. Kichline, Associate Economist Counsel James Parthemos, Associate Economist Stephen H. Axilrod, Economist John E. Reynolds, Associate Economist (Domestic Finance) Joseph S. Zeisel, Associate Economist *Ralph C. Bryant, Economist (International Finance) 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 Ellmore C. Patterson, second federal reserve district, President William F. Murray, seventh federal reserve district, Vice President Richard D. Hill, first federal Edwin S. Jones, eighth federal reserve district RESERVE DISTRICT James F. Bodine, third federal Donald R. Grangaard, ninth reserve district FEDERAL RESERVE DISTRICT M. Brock Weir, fourth federal Eugene H. Adams, tenth federal reserve district RESERVE DISTRICT John H. Lumpkin, fifth federal Ben F. Love, eleventh federal reserve district RESERVE DISTRICT Lawrence A. Merrigan, sixth Gilbert F. Bradley, twelfth FEDERAL RESERVE DISTRICT 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

A79 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 Frank R. Milliken Paul A. Volcker Robert H. Knight Richard A. Debs Buffalo ................... 14240 Rupert Warren Ronald B. Gray PHILADELPHIA 19105 John R. Coleman David P. Eastburn John W. Eckman Mark H. Willes CLEVELAND* 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati ............. 45201 Lawrence H. Rogers, II Robert E. Showalter Pittsburgh ............. 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND* .............23261 E. Angus Powell 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 Harold B. Blach, Jr. Hiram J. Honea Jacksonville .......... 32203 Egbert R. Beall Edward C. Rainey Miami .................... 33152 Castle W. Jordan W. M. Davis Nashville ............... 37203 James W. Long Jeffrey J. Wells New Orleans ........ 70161 Edwin J. Caplan George C. Guynn CHICAGO* ............. 60690 Peter B. Clark Robert P. Mayo Robert H. Strotz Daniel M. Doyle Detroit .................... 48231 Jordan B. Tatter William C. Conrad ST. LOUIS ............... 63166 Edward J. Schnuck Vacancy Vacancy Eugene A. Leonard Little Rock ............ 72203 Ronald W. Bailey John F. Breen Louisville .............. 40201 William H. Stroube Donald L. Henry Memphis ............... 38101 Robert E. Healy L. Terry Britt MINNEAPOLIS 55480 James P. McFarland Bruce K. MacLaury Stephen F. Keating Clement A. Van Nice Helena .................... 59601 James C. Garlington John D. Johnson KANSAS CITY 64198 Robert T. Person J. Roger Guffey Harold W. Andersen John T. Boysen Denver ................... 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City 73125 James G. Harlow, Jr. William G. Evans Omaha ................... 68102 Durward B. Varner Robert D. Hamilton DALLAS .................... 75222 John Lawrence Ernest T. Baughman Charles T. Beaird T. W. Plant El Paso .................... 79999 J. Luther Davis Fredric W. Reed Houston .................. 77001 Thomas J. Barlow James L. Cauthen San Antonio ........... 78295 Margaret Scarbrough Wilson 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 Lloyd E. Cooney 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

A80 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 92 pp. $.65. Sec. 16 (New). Consumer Credit. Functions. 1974. 125 pp. $1.00each; 10 or more 1965. 103 pp. $.65. to one address, $.75 each. The Federal Funds Market. 1959. Ill pp. $1.00 each; 10 or more to one address, $.85 each. Annual Report Trading in Federal Funds. 1965. 116 pp. $1.00 Federal Reserve Bulletin. Monthly. $20.00 per each; 10 or more to one address, $.85 each. year or $2.00 each in the United States, its posses­ Industrial Production—1971 Edition. 1972. 383 sions, Canada, and Mexico; 10 or more of same pp. $4.00 each; 10 or more to one address, $3.50 issue to one address, $18.00 per year or $1.75 each. each. Elsewhere, $24.00 per year or $2.50 each. The Performance of Bank Holding Companies. Federal Reserve Chart Book on Financial and 1967. 29 pp. $.25 each; 10 or more to one address, Business Statistics. Monthly. Subscription in­ $.20 each. cludes one issue of Historical Chart Book. $12.00 Bank Credit-Card and Check-Credit Plans. 1968. per year or $1.25 each in the United States, its 102 pp. $1.00 each; 10 or more to one address, possessions, Canada, and Mexico; 10 or more of $.85 each. same issue to one address, $1.00 each. Elsewhere, Survey of Financial Characteristics of Con­ $15.00 per year or $1.50 each. sumers. 1966. 166 pp. $1.00 each; 10 or more Historical Chart Book. Issued annually in Sept. to one address, $.85 each. Subscription to monthly chart book includes one Survey of Changes in Family Finances. 1968. 321 issue. $1.25 each in the United States, its posses­ pp. $1.00 each; 10 or more to one address, $.85 sions, Canada, and Mexico; 10 or more to one each. address, $1.00 each. Elsewhere, $1.50 each. Report of the Joint Treasury-Federal Reserve Capital Market Developments. Weekly. $15.00 per Study of the U.S. Government Securities year or $.40 each in the United States, its posses­ Market. 1969. 48 pp. $.25 each; 10 or more to sions, Canada, and Mexico; 10 or more of same one address, $.20 each. issue to one address, $13.50 per year or $.35 each. Joint Treasury-Federal Reserve Study of the Elsewhere, $20.00 per year or $.50 each. Government Securities Market: Staff Stud­ Selected Interest and Exchange Rates—Weekly ies—Part 1. 1970. 86 pp. $.50 each; 10 or more Series of Charts. Weekly. $15.00 per year or to one address, $.40 each. Part 2. 1971. 153 pp. $.40 each in the United States, its possessions, and Part 3. 1973. 131 pp. Each volume $1.00; Canada, and Mexico; 10 or more of same issue 10 or more to one address, $.85 each. to one address, $13.50 per year or $.35 each. Open Market Policies and Operating Proce­ Elsewhere, $20.00 per year or $.50 each. dures—Staff Studies. 1971. 218 pp. $2.00 The Federal Reserve Act, as amended through De­ each; 10 or more to one address, $1.75 each. cember 1971, with an appendix containing provi­ Reappraisal of the Federal Reserve Discount sions of certain other statutes affecting the Federal Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Reserve System. 252 pp. $1.25. 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Regulations of the Board of Governors of the 10 or more to one address, $2.50 each. Federal Reserve System The Econometrics of Price Determination Con­ Published Interpretations of the Board of Gov­ ference, October 30-31, 1970, Washington, D.C. ernors, as of June 30, 1975. $2.50. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or Supplement to Banking and Monetary Statistics. more to one address, $4.50 each. Paper ed. $4.00 Sec. 1. Banks and the Monetary System. 1962. each; 10 or more to one address, $3.60 each. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 Federal Reserve Staff Study: Ways to Moderate pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Fluctuations in Housing Construction, Dec. Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. 1972. 487 pp. $4.00 each; 10 or more to one 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. address, $3.60 each. 10. Member Bank Reserves and Related Items. Lending Functions of the Federal Reserve 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 Banks. 1973. 271 pp. $3.50 each; 10 or more pp. $.35. Sec. 12. Money Rates and Securities to one address, $3.00 each. Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. Introduction to Flow of Funds. 1975. 64 pp. $.50 24 pp. $.35. Sec. 15. International Finance. 1962. each; 10 or more to one address, $.40 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A81 Improved Fund Availability at Rural Banks (Re­ Recent Activities of Foreign Branches of U.S. port and study papers of the Committee on Rural Banks. 10/72. Banking Problems). June 1975. 133 pp. $1.00; 10 Revision of Consumer Credit Statistics. 10/72. or more to one address, $.85 each. One-Bank Holding Companies Before the 1970 Amendments. 12/72. STAFF ECONOMIC STUDIES Yields on Recently Offered Corporate Bonds. 5/73. Studies and papers on economic and financial subjects Capacity Utilization in Major Materials Indus­ that are of general interest in the field of economic tries. 8/73. research. Credit-Card and Check-Credit Plans at Commer­ cial Banks. 9/73. Summaries Only Printed in the Bulletin Rates on Consumer Instalment Loans. 9/73. (Limited supply of mimeographed copies of full New Series for Large Manufacturing Corpora­ text available upon request for single copies) tions. 10/73. Money Supply in the Conduct of Monetary Household-Sector Economic Accounts, by David Policy. 11/73. F. Seiders. Jan. 1975. 84 pp. U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. The Performance of Individual Bank Holding Companies, by Arthur G. Fraas. Aug. 1975. Capacity Utilization for Major Materials: Re­ 27 pp. vised Measures. 4/74. Numerical Specifications of Financial Variables and Their Role in Monetary Policy. 5/74. Printed in Full in the Bulletin Inflation and Stagnation in Major Foreign In­ dustrial Countries. 10/74. Staff Economic Studies shown in list below. Revision of the Money Stock Measures and Mem­ ber Bank Deposits. 12/74. REPRINTS U.S. International Transactions in 1974. 4/75. Monetary Policy in a Changing Financial Envi­ (Except for Staff Papers, Staff Economic Studies, and ronment: Open Market Operations in 1974. some leading articles, most of the articles reprinted do 4/75. not exceed 12 pages.) The Structure of Margin Credit. 4/75. Seasonal Factors Affecting Bank Reserves. 2/58. Changes in Bank Lending Practices, 1974. 4/75. Measures of Member Bank Reserves. 7/63. New Statistical Series on Loan Commitments at Research on Banking Structure and Perform­ Selected Large Commercial Banks. 4/75. ance, Staff Economic Study by Tynan Smith. Recent Trends in Federal Budget Policy. 7/75. 4/66. Banking and Monetary Statistics, 1974. Selected A Revised Index of Manufacturing Capacity, series of banking and monetary statistics for 1974 Staff Economic Study by Frank de Leeuw with only. 2/75, 3/75, 4/75 and 7/75. Frank E. Hopkins and Michael D. Sherman. 11/66. Changes in Time and Savings Deposits at Com­ U.S. International Transactions: Trends in mercial Banks, January-April 1975. 10/75. 1960-67. 4/68. Recent Developments in International Financial Measures of Security Credit. 12/70. Markets. 10/75. Monetary Aggregates and Money Market Con­ MINNIE: A Small Version of the ditions in Open Market Policy. 2/71. MIT—PENN—SSRC Econometric Model, Staff Revised Measures of Manufacturing Capacity Economic Study by Douglas Battenberg, Jared J. Utilization. 10/71. Enzler and Arthur M. Havenner. 11/75. Revision of Bank Credit Series. 12/71. An Assessment of Bank Holding Companies, Staff Assets and Liabilities of Foreign Branches of Economic Study by Robert J. Lawrence and U.S. Banks. 2/72. Samuel H. Talley. 1/76. Bank Debits, Deposits, and Deposit Turnover— Industrial Electric Power Use. 1/76. Revised Series. 7/72. Revision of Money Stock Measures. 2/76. Yields on Newly Issued Corporate Bonds. 9/72. Survey of Finance Companies, 1975. 3/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin □ March 1976 Index to Statistical Tables References are to pages A-2 through A-75 although the prefix “A” is omitted in this index 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, 37 Discount rates at Federal Reserve Banks (See Interest Bonds (See also U.S. Govt, securities): rates) New issues, 37, 38, 39 Discounts and advances by Reserve Banks (See Loans) Yields and prices, 28, 29 Dividends, corporate, 40, 41 Branch banks: Assets, foreign branches of U.S. banks, 70 EMPLOYMENT, 50, 52 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 22, 71 FARM mortgage loans, 42 Brokerage balances, 69 Federal agency obligations, 9, 10, 11 Business expenditures on new plant and equipment, 41 Federal finance: Business indexes, 50 Receipts and outlays, 32, 33 Business loans (See Commercial and industrial loans) Treasury operating balance, 32 Federal funds, 5, 16, 18, 21, 27 CAPACITY utilization, 50 Federal home loan banks, 37 Capital accounts: Federal Home Loan Mortgage Corporation, 42, 43 Banks, by classes, 14, 17, 22 Federal Housing Administration, 42, 43, 44, 45 Federal Reserve Banks, 10 Federal intermediate credit banks, 37 Central banks, 60, 75 Federal land banks, 37 Certificates of deposit, 22 Federal National Mortgage Assn., 37, 42, 43 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 13, 16 Condition statement, 10 Weekly reporting banks, 18, 23 U.S. Govt, securities held, 2, 10, 11, 34, 35 Commercial banks: Federal Reserve credit, 2, 4, 10, 11 Assets and liabilities, 13, 14, 16, 17, 18 Federal Reserve notes, 10 Consumer loans held, by type, 45, 46, 47 Federally sponsored credit agencies, 37 Deposits at, for payment of personal loans, 24 Finance companies: Loans sold outright, 25 Loans, 18, 45, 46, 47 Number, by classes, 14 Paper, 25, 27 Real estate mortgages held, by type of holder and Financial institutions, loans to, 16, 18 property, 42^-44 Float, 2 Commercial paper, 23, 25, 27 Flow of funds, 56, 57 Condition statements (See Assets and liabilities) Foreign: Construction, 50, 51 Currency operations, 10 Consumer instalment credit, 45, 46, 47 Deposits in U.S. banks, 3, 10, 17, 21, 72 Consumer price indexes, 50, 53 Exchange rates, 75 Consumption expenditures, 54, 55 Trade, 59 Corporations: Foreigners: Profits, taxes, and dividends, 41 Claims on, 66, 67, 68, 72, 73, 74 Sales, revenue, profits, and dividends of large Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 manufacturing corporations, 40 Security issues, 38, 39 GOLD: Security yields and prices, 28, 29 Certificates, 10 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 60 Currency and coin, 3, 16 Stock, 2, 59 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 DEBITS to deposit accounts, 11 HOUSING permits, 50 Debt (See specific types of debt or securities) Housing starts, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 References are to pages A-2 through A-75 although the .prefix “A” is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 45 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property mortgaged, 42^44 Insured commercial banks, 14, 16, 17, 24 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20 Reserve requirements, member banks, 7 Interest rates: Reserves: Bond and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 45 Residential mortgage loans, 43, 44, 45 Prime rate, commercial banks, 26 Retail credit, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69, 73 SALES, revenue, profits, and dividends of large manu­ Inventories, 54 facturing corporations, 40 Investment companies, issues and assets, 39 Saving: Investments (See also specific types of investments): Flow of funds series, 56, 57 Banks, by classes, 14, 16, 19, 30 National income series, 54, 55 Commercial banks, 13 Savings and loan assns., 31, 35, 42, 44 Federal Reserve Banks, 10, 11 Savings deposits (See Time deposits) Life insurance companies, 31 Savings institutions, principal assets, 30, 31 Savings and loan assns., 31 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 37 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 37, 38, 39 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, 45 New security issues, 37, 38 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, 38, 39 Member banks: Yields and prices, 28, 29 Assets ^nd liabilities, by classes, 14, 16, 17 TAX receipts, Federal, 33 Borrowings at Federal Reserve Banks, 4, 10 Time deposits, 8, 13, 14, 17, 21, 22 Number, by classes, 14 Treasury currency, Treasury cash, 2, 3 Reserve position, basic, 5 Treasury deposits, 3, 10, 32 Reserve requirements, 7 Treasury operating balance, 32 Reserves and related items, 2, 4, 13 Mining, production index, 49 UNEMPLOYMENT, 52 Mobile home shipments, 51 U.S. balance of payments, 58 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 12 Commercial bank holdings, 17, 20 Mortgages (See Real estate loans and Residential Member bank holdings, 13 mortgage loans) Treasury deposits at Reserve Banks, 3, 10, 32 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 20, 30, 34, 42, 44 Bank holdings, 14, 16, 19, 30, 34, 35 Dealer transactions, positions, and financing, 36 NATIONAL banks, 14, 24 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 National defense expenditures, 33 Foreign and international holdings, 10, 66, 68, 72 National income, 54, 55 International transactions, 66, 68 Nonmember banks, 15, 16, 17, 24 New issues, gross proceeds, 38 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, 40, 41 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND Boundaries of Federal Reserve Districts © Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation and Statistical Releases SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the partic­ n.e.c. Not elsewhere classified ular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for — (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. 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