Federal Reserve Bulletin, 1976-05

M A Y 1976 FEDERAL RESERVE BULLETIN D o m estic F in an cial D ev elo p m en ts in th e F irst Q u arter of 1976 T h e S trateg y o f M o n etary C o n tro l Im p ro v in g th e M o n etary A g g reg ates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BULLETIN N U M B E R 5 □ V O LU M E 62 □ M A Y 1976 C O N T E N T S 401 Domestic Financial Developments in Al Financial and Business Statistics the First Quarter of 1976 Al Contents 409 Staff Economic Studies: Summaries A2 U.S. Statistics A58 International Statistics 411 The Strategy of Monetary Control A76 Board of Governors and Staff 422 Improving the Monetary Aggregates: Report of the Advisory Committee A78 Open Market Committee and Staff; on Monetary Statistics Federal Advisory Council 427 Statements to Congress A79 Federal Reserve Banks and Branches 439 Record of Policy Actions A80 Federal Reserve Board Publications of the Federal Open Market Committee A82 Index to Statistical Tables 446 Law Department A84 Map of Federal Reserve System 459 Announcements Inside Back Cover: 461 Industrial Production Guide to Tabular Presentation and Statistical Releases PU B L IC A T IO N S C O M M IT T E 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

Domestic Financial Developments in the First Quarter of 1976 This report, which was sent to the Joint Eco­ serve policies aimed at inducing more rapid nomic Committee of the U.S. Congress in May expansion of the monetary aggregates than had 1976, highlights the important developments in occurred during the second half of 1975. financial markets during the winter and early Growth in the narrowly defined money stock, spring. M1? had been particularly sluggish after mid­ year, and the System acted to elicit more rapid Economic activity in the United States contin­ growth so that it and the other measures of the ued to expand at a brisk pace during the first money stock would, over the long run, remain quarter of 1976. Even as the cyclical recovery within desired ranges. In October and again in neared the end of its first year, however, credit January, reserve requirements on time deposits markets eased still further. Interest rates gener­ were reduced, and in January the Federal Re­ ally declined over the quarter, in many cases serve discount rate was cut from 6 to 5Vz per reaching their lowest levels in 2 years or more. cent. System open market operations became In this favorable environment, the availability more accommodative, and the Federal funds of funds to creditworthy borrowers was gener­ rate—the interest rate for interbank loans of ally quite ample, and business firms and finan­ immediately available funds on an overnight cial institutions were able to achieve substantial basis—declined from 6lA per cent in September additional improvements in liquidity. to about 43A per cent in January; the rate then The decline in interest rates over recent fluctuated narrowly near this lower level over months was stimulated in part by Federal Re­ the remainder of the quarter. Interest rates SHORT-TERM LONG-TERM NOTES: Federal funds Monthly averages except for conventional mortgages (based on Conventional quotations for one day each mortgages Aaa utility month). Yields: U.S. Treasury HUD I New issue 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; Aaa utility bonds, weighted averages of new F.R. discount rate publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Treasury bills State and local Service and adjusted to Aaa basis; 3-month government U.S. Govt, bonds, market yields adjusted to 20-year constant matu­ rity 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

402 Federal Reserve Bulletin □ May 1976 These adjustments in the instruments of extended during the first quarter. Most short­ monetary policy did in fact begin to have their term rates dropped 40 to 60 basis points from intended effect during the first quarter. Mu after the end of December to the end of March, little change in January, grew at an average reaching their lowest levels since late 1972. annual rate of about 6 per cent during February During most of the quarter, the yield on 3-month and March. On a quarterly-average basis, Mx Treasury bills was below the 5 per cent ceiling expanded at a 2.6 per cent rate, slightly higher rate on bank savings deposits. The rate charged than the 2.3 per cent rate recorded in the pre­ prime business customers by commercial banks ceding 3 months. The lower level of market was lowered in January to 63A per cent, but held rates of interest had a quicker and more dramatic steady for the remainder of the quarter as banks effect on the growth of the broader monetary continued to maintain a sizable spread between aggregates, M2 and M3, which expanded at their loan rates and the lower level of yields annual rates of 10.1 per cent and 11.4 per cent, on money market instruments. respectively, from the fourth to the first quarters. Long-term rates of interest also registered To a considerable degree, the strength in M2 significant declines during the first quarter of and M3 reflected a surge in the growth of savings 1976. Although the desire to strengthen balance accounts. sheets by reducing short-term indebtedness The decline in yields on money market in­ continued to lead firms to issue a large volume struments that had begun last September was of intermediate- and long-term bonds, rates on TA BLE 1 Changes in selected m onetary aggregates In per cent, seasonally adjusted annual rates 1975 1976 Item 1974 1975 Q2 Q3 Q4 Ql Member bank reserves: 1 Total reserves less required re­ Total ....................................................... 7.1 -.4 1.3 -.8 1.4 -6.2 serves for U.S. Govt, and interbank Required reserves ................................ 7.3 -.5 1.3 -.7 .5 -5.7 deposits. Nonborrowed ........................................ 9.2 1.3 -.1 -2.8 4.5 -5.3 2 Mi is currency plus private de­ Available to support private mand deposits adjusted. nonbank deposits1 ............................ 7.4 -1.1 -.2 -1.5 .4 -6.0 M2 is plus bank time and sav­ Concepts of money calculated from:2 ings deposits adjusted other than Quarterly-average— large CD’s. Mi ....................................................... 5.0 4.4 7.4 7.1 2.3 2.6 M3 is M2 plus deposits at mutual M2 ....................................................... 7.7 8.3 10.2 10.1 6.4 10.1 savings banks and savings and loan m3 ....................................................... 7.1 11.1 12.6 13.3 9.4 11.4 associations and credit union shares. M4 ....................................................... 10.6 6.5 5.6 5.7 6.7 5.8 M4 is M2 plus large negotiable m5 ....................................................... 9.0 9.7 9.4 10.1 9.4 8.6 CD’s. M5 is M3 plus large negotiable End-month of quarter— Mx ....................................................... 4.7 4.1 9.7 3.6 1.6 4.3 CD’s. M2 ....................................................... 7.2 8.5 12.5 6.5 7.0 11.5 3Savings and loan associations, m3 ....................................................... 6.8 11.3 14.5 10.7 9.3 12.6 mutual savings banks, and credit m4 ....................................................... 10.6 6.4 7.7 3.0 8.4 5.0 unions. m5 ....................................................... 9.0 9.7 11.3 8.1 10.0 8.4 4 Total member bank deposits plus funds provided by Euro-dollar bor­ Time and savings deposits rowings and bank-related commer­ (quarterly-average basis) at: Commercial banks (other than cial paper. large CD’s) ....................................... 10.1 11.7 12.5 12.7 9.8 15.9 Nonbank thrift institutions3 ............... 6.1 15.8 16.5 18.4 14.2 13.6 Note.—Changes are calculated from the average amounts outstand­ Bank credit proxy, adjusted4 ................. 9.8 4.3 3.6 1.4 6.0 2.3 ing in the last month of each quarter, except where noted. Quarterlyaverage calculations are based on Memo (change in billions of dollars, seasonally adjusted): changes in the average amounts out­ Large CD’s ............................................ 26.3 -6.9 -5.7 -5.0 3.8 -9.8 standing for a quarter. Annual rates U.S. Govt, demand deposits of growth in reserve measures have at all member banks ........................ -1.6 -.4 .7 -.2 -.5 been adjusted for changes in reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Ql 1976 403 new corporate bond issues fell to their lowest expanded the experiment with negotiable orders levels in 2 years. Large volumes of new State of withdrawal (NOW’s) from Massachusetts and and local government bonds and U.S. Treasury New Hampshire to the other four New England coupon issues also were absorbed at declining States, thereby setting the stage for further yields. Net mortgage debt formation receded economization of conventional demand deposits somewhat from the pace of the fourth quarter, by residents of those States. when the imminent expiration of the 1975 tax Measured on a quarterly-average basis, M2 credit on new home purchases had provided a grew at a 10 per cent annual rate in the first temporary stimulus to mortgage closings. Heavy quarter of 1976, up from 6V2 per cent in the deposit inflows encouraged nonbank thrift insti­ previous quarter. The income velocity of M2 tutions to expand sharply their outstanding loan rose only modestly. The tendency toward mini­ commitments during the first quarter, however, mization of idle cash balances included in and interest rates in both the primary and sec­ would be expected to have a smaller impact on ondary mortgage markets trended downward the behavior of M2 and M3 because many of throughout the first 3 months of the year. the principal alternatives to non-interest-bearing balances are included in those broader aggre­ gates. But the much more rapid growth of M2 in the first quarter was primarily due to the large M O N E T A R Y A G G R E G A T E S flow of funds into savings accounts that occurred A N D B A N K R E SE R V E S when short-term market rates of interest fell Growth in both the currency and the demand below the ceiling rates permitted on such sav­ deposit components of Mx picked up somewhat ings deposits at commercial banks. during the first quarter of 1976. Currency rose In late November and December, all of the at a 10.9 per cent annual rate between December and March, as compared with 9.4 per cent in the preceding 3 months; demand deposits in­ Changes in the income velocity of Mj and M 2 creased at a 2.4 per cent rate, as contrasted with Percentage rate of change a slight decline in the earlier period. The lagged impact of interest rate declines in the preceding 20 months probably contributed to the quickening pace of monetary growth. The income velocity of Mx—the ratio of GNP to Mi—advanced at an 8.8 per cent annual rate in the first quarter, a bit less than in the second half of 1975 but still more than twice the trend rate of increase over the whole period since World War II. The further sharp rise in velocity, coupled with the decline in interest rates, indi­ cates a continuation of the apparent downward shift since mid-1974 in the the public’s demand for Mx. Consumers, governments, and busi­ nesses have exhibited increasing sophistication in minimizing idle, non-interest-bearing bal­ ances. Cash management techniques adopted in response to record-high interest rates have not been abandoned as rates have declined. In addi­ tion, numerous statutory and regulatory changes enacted over the last 2 years have facilitated 1974 1975_______ transfers to and from interest-bearing deposits. Most recently, legislation passed in February Data are at seasonally adjusted annual rates of growth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin □ May 1976 growth of savings deposits at large banks was sisted in February and March, as the heavy accounted for by the growth of the newly au­ inflows of savings deposits were adequate to thorized savings accounts of businesses. A sur­ meet the still-depressed demand for loans. Over vey of banks taken in early January indicated the course of the quarter, large banks allowed that well over half of these funds had been outstanding CD’s to decline by a record amount transferred directly from demand deposits, as of almost $10 billion. firms took advantage of the liquidity and yield While the monetary aggregates were expand­ of savings deposits. But by the beginning of ing during the first quarter, total reserves of the first quarter, the initial wave of transfers member banks were contracting. This was pos­ from demand to savings balances by businesses sible because the run-off in CD’s and other apparently had been largely completed; the large-denomination time deposits freed a sizable continued, though slower, expansion of busi­ volume of reserves to support the growth of ness savings deposits likely reflected interest- other time and savings deposits and of demand rate-induced shifts of funds from other time deposits. deposits and market instruments. Increases in the volume of business accounts played only a small part, however, in the extraordinary 28 per B A N K C R E D IT cent rate of growth of total savings deposits in A N D C O M M E R C IA L PA PE R the first quarter. The expansion of savings de­ posits was broadly based among various types Total loans and investments of commercial of depositors—including State and local gov­ banks grew much more rapidly in the first quar­ ernments and individuals—and among banks of ter of 1976 than they had in any quarter of 1975. different sizes, suggesting widespread aware­ The over-all increase from the end of December ness of market alternatives. to the end of March was $13.1 billion, or an The other interest-bearing component of annual rate of expansion of 7.3 per cent. Ac­ M2—that is, time deposits excluding large ne­ quisitions of U.S. Treasury securities— gotiable certificates of deposit (CD’s) issued by money market banks—grew only moderately Components of Major categories of (6V2 per cent annual rate) in the first quarter. bank credit bank loans The growth of such deposits was held down by Change, billions of dollars run-offs of certain large time deposits that are UR1TIES BUSINESS 16 4 included in this deposit category but are not + money market CD’s. There were scattered re­ U T T 0 ports that, in light of the strong deposit inflows 4 induced by low yields on market instruments, 4 some banks and other depositary institutions had 0 REAL ESTATE 4 shaded their rates on small-denomination time OTHER SECURITIES 4 ■ 1__1—m ,.n 0 deposits. Inflows of deposits to savings and loan asso­ — —d —nm—t=i_ Tz I r + 2 CONSUMER 4 + ciations, mutual savings banks, and credit 4 "‘|...|ni irii»i|.ii....I.|,l r~i r~i 1—1 0 unions also were buttressed by the low market TOTAL LOANS 4 rates prevailing on alternative short-term instru­ NONBANK FINANCIAL ments. As a consequence, M3 accelerated to an 4 11V2 per cent rate of growth in the first quarter + 0 from the 9Vi per cent rate recorded in the 4 LD---------- 4 preceding quarter. 8 In January banks permitted maturing CD’s to Ql Q2 Q3 Q4 Ql Ql Q2 Q3 Q4 Ql 1975 ’76 1975 76 run off, reversing the build-up that had occurred in anticipation of the end-of-year statement date. Seasonally adjusted. Total loans and business loans adjusted for transfers between banks and their holding companies, But the decline in outstanding CD’s then per­ affiliates, subsidiaries, or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Ql 1976 405 TA BLE 2 and textiles and apparel manufacturing— increased their borrowing at banks during the Rate spreads and changes in quarter. business loans and com m ercial paper Change N O N B A N K IN T E R M E D IA R IE S Rate In billions of dollars, spread seasonally adjusted Annual A N D T H E M O R T G A G E M A R K E T Period (basis rate for points)1 total Deposit inflows at nonbank thrift institutions Busi­ Commer­ (per ness cial Total cent) improved in the first quarter, as both savings loans2 paper3 and loan associations and mutual savings banks benefited from the relatively low level of rates 1975— Ql ... 237 -1.6 .8 -.8 -1.6 on short-term market securities. Deposits at Q2 ... 170 -4.5 -1.5 -6.0 -12.1 Q3 ... 121 -.3 -.3 -.6 savings and loan associations and mutual sav­ Q4 ... 192 i.i -1.6 -.5 -1.0 ings banks expanded at a seasonally adjusted 1976— annual rate of 14.8 per cent in the first 3 months Ql ... 194 -2.4 .8 -1.6 -3.4 of 1976, moderately higher than the 11.8 per Jan. .. 224 .3 .5 .8 5.0 cent rate in the previous quarter. Feb. .. 189 -.8 .4 -.4 -2.5 Mar. .. 170 -1.9 -.1 -2.0 -12.5 Mortgage lending activity by nonbank thrift institutions did not fully absorb the strong first- 1 Prime rate less 30- to 59-day commercial paper rate. quarter savings inflows. These institutions were 2 At all commercial banks based on last-Wednesday-ofmonth data; adjusted for outstanding amounts of loans sold able, therefore, to increase their holdings of to affiliates. 3 Nonfinancial company paper measured from end-of-month liquid assets to the highest levels in recent years to end-of-month. and to repay advances from Federal home loan amounting to more than $10 billion on a sea­ banks. As of March 31, 1976, Federal home sonally adjusted basis—accounted for most of loan bank advances totaled $15.8 billion, the the increase in bank assets. Large banks reached lowest amount since February 1974. beyond the bill maturity range, investing sub­ The pace of total mortgage debt formation stantial amounts in 1- to 5-year notes so as to slowed a little in the first quarter of 1976. The take advantage of the steep, upward-sloping slowdown occurred in the residential component yield curve. Total loans also contributed to the of mortgage lending, which had risen sharply expansion of bank asset portfolios, growing in the previous quarter when home buyers com­ $4.0 billion despite a decline in loans to busi­ pleted purchase transactions on new homes to nesses. Consumer and real estate loans ac­ take advantage of last year’s housing tax credit. counted for about two-thirds of the growth in Nevertheless, the level of total net residential total loans at banks during the first 3 months mortgage lending in the quarter was more than of 1976. Total short-term business credit continued to Deposits Savings and bans and mutual savings banks contract during the first quarter, as it had Annual rate of change, per cent throughout 1975. An increase in the outstanding volume of commercial paper issued by nonfi­ HI H 16 nancial firms was more than offset by the sizable reduction in business loans at commercial banks. Although both business capital spending 8 and the book value of nonfarm inventories rose during the first quarter, growing internal cash flows and the proceeds of a large volume of 1 I I I 1 I I r# » o capital market financings more than satisfied the Ql Q2 Q3 Q4 Ql _________1975_________ 76 aggregate financial needs of firms. However, some business sectors—notably trade, mining, Seasonally adjusted. Changes based on month-end figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Federal Reserve Bulletin □ May 1976 TA BLE 3 in the second half of 1975 but below the record volume in the first half of that year. The buoyant N et change in m ortgage debt outstanding tone of the public market during the quarter led In billions of dollars, seasonally adjusted annual rates several firms to enlarge their offerings and may have prompted other firms to bring issues to 1975 1976 Change— market earlier than they had planned. The in­ Ql Q2 Q3 Q4 eQl crease in debt offerings can be attributed largely to those of industrial corporations, many of By type of debt: which are prime-rated borrowers. Approxi­ Total ....................................... 35 46 56 68 66 Residential ....................... 21 32 40 52 50 mately 60 per cent of the first quarter’s calendar Other1 ................................ 14 14 16 16 16 carried ratings of Aaa or Aa compared with At selected institutions: about 40 per cent in the second half of 1975. Commercial banks ............... 3 1 2 6 6 Savings and loans ............... 17 27 35 39 36 Nevertheless, the high absolute volume of issues Mutual savings banks ........ 2 2 3 3 2 Life insurance rated A or lower attested to the improved avail­ companies ......................... 5 4 2 1 2 FNMA-GNMA .................... 5 3 5 6 1 ability of long-term financing to less-than-prime borrowers. Memo In the first quarter, offerings of foreign se­ FHLB advances to S&L’s2.. - 4 - 1 1 (3) -2 curities totaled $8 billion at a seasonally ad­ justed annual rate, somewhat less than the includes commercial and other nonresidential as well as farm properties. record volume of the previous quarter. Canadian 2Quarterly totals, not seasonally adjusted. borrowers, especially Canadian provincial gov­ 3Less than $500 million. ePartially estimated. ernments, continued to raise sizable amounts of funds in U.S. capital markets by placing securi­ twice the depressed total in the first quarter of ties in both the public and the private debt last year. markets. Canadian borrowings have totaled Mortgage interest rates in the primary market more than $4.5 billion in the last four quarters, continued to move lower during the first quarter ; almost 60 per cent of total foreign security average interest rates on new commitments for offerings. conventional home mortgages at savings and Corporate bond yields generally moved lower loan associations declined about 40 basis points in the first quarter, but the decline was much to 8.70 per cent by early April. Yields in the less pronounced than in the final months of secondary mortgage market also declined mod­ 1975. The Board’s index of yields for newly erately over the quarter. In response to reduc­ tions in market rates, the ceiling rates on home loans insured by the Federal Housing Adminis­ TA BLE 4 tration or guaranteed by the Veterans Adminis­ O fferings of new security issues tration were lowered from 9 per cent to 8% per In billions of dollars, seasonally adjusted annual rates cent in early January and then to 8V2 per cent in late March. 1975 1976 Type of issue Ql Q2 Q3 Q4 eQl SE C U R IT IE S M A R K E T S Corporate securities: Total........................... 61 60 44 44 54 Gross offerings of new securities by U.S. cor­ Bonds ................. 52 47 35 32 39 Stocks ................. 9 13 9 12 15 porations increased to a seasonally adjusted an­ Foreign securities __ 4 6 7 10 8 nual rate of $54 billion in the first quarter of 1976. New issues of medium- and long-term State and local govt, bonds ....... 27 33 36 26 31 corporate bonds accounted for $39 billion of this amount, an increase over the pace of offerings e Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Ql 1976 407 TA BLE 5 NOTES: Federal G overnm ent borrow ing and cash balance 1 Includes outlays of the Export- Quarterly totals, in billions of dollars, not seasonally adjusted import Bank, Pension Benefit Guaranty Corporation, Postal 1975 1976 Service Fund, rural electrification and telephone revolving fund, rural Item telephone bank, housing for the Ql Q2 Q3 Q4 Ql elderly or handicapped fund, and Federal Financing Bank. 2Checks issued less checks paid, Unified Federal budget surplus, or deficit (—) ............................................. -18.0 -12.0 -18.5 -26.6 -22.7 accrued items, and other transac­ Off-budget surplus, or deficit (—)* .......... -5.5 -2.5 -.8 -2.6 -3.8 tions. Net cash borrowings, or repayments (—) 19.5 16.6 23.5 25.9 24.1 3 Includes debt of the Federal Other means of financing2 .................... 4.7 -1.1 -1.1 1.2 2.0 Home Loan Mortgage Corporation, Change in cash balance ......................... .7 1.0 2.9 -2.1 -.4 Federal home loan banks, Federal Federally sponsored credit agencies, net land banks, Federal intermediate cash borrowings3 .................................. .1 -.1 .8 2.0 .5 credit banks, banks for coopera­ tives, Federal National Mortgage Net cash borrowings, Association (including discount seasonally adjusted annual rate, by— notes and securities guaranteed by Treasury .................................................... 67 97 94 85 84 the Government National Mortgage Federally sponsored credit agencies ... 7 -2 -2 8 9 Association), and farm credit banks. issued Aaa-rated utility bonds fell more than 1 in stock prices. For some time many firms had percentage point from the end of September, to wanted to reduce their ratio of debt to equity; about 8% per cent in mid-January. The series however, they had postponed equity offerings then moved narrowly before edging below the while their shares were trading at prices well 8% per cent level in early April. The sizable below book value. Prices on the New York decline in prime-rated yields late last year and Stock Exchange advanced more than 30 per cent their relative stability in the first quarter of 1976 during 1975 and gained an additional 13 per were accompanied by a narrowing of risk pre­ cent in the first quarter of 1976. The Dow Jones miums between prime-rated and lower-rated industrial average reached its highest level in corporate obligations. These risk premiums 3 years, moving above the 1,000 mark at times were at or near their widest margins in the late during the first quarter. summer and early fall of last year, but they In the municipal securities market, total of­ narrowed to more normal levels as economic ferings of State and local government bonds conditions improved. For example, newly is­ increased to a seasonally adjusted annual rate sued A-rated utility bonds yielded about V2 of of $31 billion in the first 3 months of 1976, a percentage point more than Aaa-rated issues a record for the quarter. Also, tax-exempt yields in early April; this contrasts with a spread of continued to move lower, on balance, during almost 1V2 percentage points in the third quarter the quarter. They backed up somewhat in midof 1975. February and early March when a large volume New stock offerings by domestic corporations of new issues was announced, but yields re­ increased to a seasonally adjusted annual rate sumed their downward trend in late March and of $15 billion in the first quarter, the largest early April when the forward calendar lightened volume in 3 years. Utilities continued to account somewhat and market participants were en­ for the majority of new stock offerings, but couraged by the success of New York State in several manufacturing concerns also marketed meeting its large seasonal financing require­ large issues during the quarter. Indeed, equity ments. offerings by manufacturers in the first 3 months The Treasury’s net cash borrowings during of 1976 were equal to about two-thirds of the the first quarter amounted to more than $24 total for all of 1975 and were greater than total billion, somewhat less than the $26 billion manufacturers’ offerings in both 1973 and 1974. raised during the final quarter of 1975. The The increase in stock offerings by corpora­ Treasury shifted the composition of its new debt tions was due largely to the dramatic recovery issues by reducing the reliance on bills and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin □ May 1976 increasing the use of coupon issues. Net is­ their late-February levels when the Federal suance of Treasury bills was $6.3 billion for funds market eased and market participants be­ the first 3 months of 1976 compared with more came convinced that the Federal Reserve was than $14 billion in each of the preceding two not likely to adopt a less accommodative stance quarters. over the near-term future. Commercial banks, Yields on both short- and long-term Treasury nonbank thrift institutions, and business firms issues declined during the first 2 months of continued to be large purchasers of Treasury 1976, after having dropped sharply in the final securities, and the System acquired more than quarter of last year. These interest rates backed $1 billion of Treasury and Federal agency obli­ up somewhat in early March following an uptick gations in the course of its open market oper­ in the Federal funds rate, but then returned to ations. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

409 Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed­ forth are those of the authors and do not neces­ eral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub­ Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the B ulletin by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes­ back of each B ulletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies ” that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve B ulletin. currently available in that form. ST U D Y SU M M A R IE S E X T E N D IN G M E R G E R A N A L Y SIS B E Y O N D T H E SIN G L E -M A R K E T FR A M E W O R K Stephen A. Rhoades—Staff, Board of Governors Prepared as a staff study paper in March 1976 During the past decade, U.S. corporations have This paper contends that several concepts made a powerful and sustained drive to diversify concerned with firms’ multimarket relation­ into new geographic and product markets. In ships appear to have considerable potential for the banking industry, the bank holding company future theoretical and/or statistical development. has been in the forefront of this movement. These concepts—some new, some not new— Unfortunately, this movement has outpaced the include potential competition, probable future development by economists of analytical tools competition, linked oligopoly, threat of cus­ and statistical evidence to predict the likely tomer exit, undue concentration of resources, competitive and other effects of multimarket and the use of the State as a relevant area for expansion, whether accomplished de novo or by assessing the effects of mergers. The article also merger. This lag in the development of analyti­ presents new empirical evidence on some of the cal tools and statistical evidence places a partic­ concepts. ularly heavy burden on the antitrust and banking The new findings reported in this paper relate authorities, which are charged with weighing to the concepts of linked oligopoly and probable the competitive effects of mergers, in addition future competition. With respect to linked to convenience and needs and banking factors. oligopoly, it was found that when banking or­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 Federal Reserve Bulletin □ May 1976 ganizations in one market have links in nu­ Board of Governors between January 1960 and merous other markets throughout a State, com­ December 1969 because future foothold or de petition between these banks is weakened. With novo entry was likely. In two-thirds of the respect to probable future competition, 22 denied cases, such entries did, in fact, take place mergers or acquisitions were denied by the before the end of 1975. □ SE A SO N A L A D JU S T M E N T O F M x— C U R R E N T L Y PU B L IS H E D A N D A L T E R N A T IV E M E T H O D S Edward R. Fry—Staff, Board of Governors Prepared as a staff study paper in early 1976 In recent years, increasing attention has been methods were included in the study. These focused on growth rates of the seasonally ad­ included ratio-to-moving-average and regression justed money stock as a guide and indicator of methods and multiplicative and additive proce­ monetary policy. Money stock seasonal adjust­ dures with both moving and stable seasonality ment factors are reviewed annually by the staff variants. Some procedures were applied to series of the Board of Governors. Several alternative totals as well as to component series, and time seasonal adjustment procedures were examined periods covered were varied in some cases. in conjunction with the January 1976 revision, In general, the comparisons of the alternative in view of the relatively large changes in sea­ seasonal adjustment procedures indicate that a sonal factors indicated for a few months, and variety of seasonal methods produce roughly because of the continued volatility of growth similar turning points and growth patterns in the rates computed for the revised monetary aggre­ seasonally adjusted money stock series. How­ gates. ever, a wide range of growth rates is obtained This paper first describes the seasonal adjust­ for a given month by using alternative measures, ment procedure that is currently used by the and growth rates computed for monthly periods Board in its annual revisions of the money by any of these procedures are volatile. The stock. Then it provides comparisons of the re­ results underscore the need for caution in inter­ sults of selected seasonal procedures used in the preting single-month growth rates in the money study. About 30 alternative seasonal adjustment stock. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

411 The Strategy of Monetary Control This article is adapted from a report submitted quality assets. Corporate business worked to to the Federal Open Market Committee by Alan restore its strained liquidity by borrowing heav­ R. Holmes, Manager of the System Open Mar­ ily in the bond market and repaying bank loans, ket Account and Executive Vice President of the as its inventories were sharply reduced in the Federal Reserve Bank of New York, and by first half of the year. The banking system Peter D. Sternlight, Deputy Manager for Do­ emerged with a significant volume of problem mestic Operations of the System Open Market loans and placed increased emphasis on credit Account and Vice President of the New York quality. A number of State and local govern­ Bank. ment instrumentalities were unable to borrow in the markets at all because of the lack of Monetary policy in 1975 sought to promote a confidence in their financial strength. Con­ sustainable economic recovery while at the same sumers continued to save at a high rate, and time helping to damp down inflation and to it was hard to assess the significance for mone­ reduce fears of its rapid reappearance. Monetary tary policy of changes in their distribution of policy succeeded in establishing the financial savings among money and other liquid assets preconditions for a long-lasting expansion and especially after the Federal tax rebates of May. complemented the vigorous stimulus of Federal Early in the year the Federal Open Market tax actions to increase personal disposable in­ Committee (FOMC), in response to a Joint come. The economy, after suffering the deepest Resolution of the Congress (House Concurrent recession in the postwar era, began to recover Resolution 133), began a practice of focusing as consumer buying rose and inventory liquida­ explicitly on a longer time horizon in formulat­ tion tapered off. By the year-end the recovery ing its policy approach. In April the Committee was well along a normal trajectory and the rate adopted annual growth ranges for the monetary of inflation had been reduced significantly. and credit aggregates. In recent years it had used Confidence was growing that the expansion such ranges for some of the aggregates, speci­ could continue for an extended period without fied for 6-month time horizons, to quantify the re-igniting more severe inflation, provided leverage it wished to exert on the economy. The monetary and fiscal policy continued to be Committee’s announcement of its choice of a shaped toward that objective. 5 to IV2 per cent growth for Mt and related The course of monetary policy during the year ranges for JVf2, M3, and the bank credit proxy was influenced importantly by the unwinding of helped to focus the national discussion of pol­ the accumulated strains of the preceding boom icy. While some critics believed that these and by massive shifts in financial flows that ranges were too low, the economy’s rebound— reflected the recession itself. The size of the accompanied by an especially large rise in Federal Government’s financing—which ulti­ money velocity—tended to mitigate such criti­ mately reached $85 billion in the year—period­ cism by the year-end. Also, the FOMC’s ob­ ically led to concern among observers that mar­ served efforts to implement its broad goals con­ ket congestion might impede the recovery at tributed importantly to the lessening of infla­ some stage. The financing was in fact accom­ tionary expectations during the year. plished without undue difficulty, as an accom­ In the early part of the year monetary policy modative monetary policy and slack private loan continued to encourage a resumption of moder­ demand enabled banks to rebuild their high- ate monetary growth, contributing to a sharp fall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin □ May 1976 in interest rates in the process. By mid-March 1970 the FOMC has made use of the money such expansion appeared in progress. Short­ supply measures to define the general outlines term interest rates leveled off temporarily, while of its policy objectives and to guide open market long-term rates began to rise as concern operations between Committee meetings. The mounted that huge Treasury financing demands Committee’s decision-making and policywould compete with other demands and force implementation process pays particular attention higher rates all around. A substantial bulge in to the variables over which monetary policy has bank deposits emerged in the second quarter. the most direct control and examines the degree When growth strengthened substantially beyond to which they influence the timing and shape earlier expectations, it appeared to reflect more of economic developments. The Committee than just the temporary and anticipated impact seeks to take account of shifts in economic of tax refunds and transfer payments. By June behavior, whether arising from policy actions it appeared that excessive monetary expansion or other forces, that may be altering previously would indeed continue if current bank reserve observed relationships. These behavioral rela­ and money market conditions were maintained tionships are part of a generalized economic in the face of the expansive forces then at work framework that can be used to examine incom­ in the economy, and the FOMC permitted some ing data to obtain information on the economic firming in such conditions. outlook and changes in the framework itself. In the course of the third quarter, interest rates Monetary policy influences the economy by rose, growth in the aggregates decelerated, and affecting the cost and availability of money and other information on the economy suggested credit. In formulating a policy strategy, the that the recovery itself was gaining momentum. Committee considers the expected relationships Meantime, the New York City fiscal situation among monetary growth rates, credit condi­ was causing widespread concern in the financial tions, the liquidity of key economic sectors, and markets. Some felt that spending by some mu­ output, employment, and prices. The FOMC nicipalities would be affected if they were to then has to devise an operational strategy for encounter difficulty in borrowing. Renewed carrying out its policy. When the Committee concern over the viability of financial markets chooses a strategy of implementation, it weighs and institutions began to diminish the benefits how System actions that affect reserve avail­ of stronger liquidity positions. While the at­ ability will, in turn, affect the assets and liabili­ mosphere in the credit markets weakened, the ties of financial institutions and the public de­ slowdown in money growth alleviated worries mand for them. The resultant responses to Sys­ about inflation. Starting in October the Federal tem policy are related to past, present, and Reserve adopted a somewhat more accommo­ expected movements in interest rates. The ef­ dative reserve policy that contributed to a fairly fects of changes in policy are then transmitted rapid decline in short-term rates of interest. Late to monetary and credit flows and, ultimately, in the year a Federal program to provide sea­ to resource utilization. sonal aid to New York City relieved the problem A complex economy has many sectors and immediately facing that city and reduced market developed markets, which interact to affect concern. economic activity. There are feedbacks between sectors and markets that take time to work through the financial and economic system. A T H E ST R A T E G Y change in System posture with respect to reserve O F PO L IC Y FO R M U L A T IO N provision affects the behavior of money, the level and term structure of interest rates, and The Evaluation economic activity with a lag. The reaction of of Long-Run Objectives participants in the economic process to changes The experiences over the year illustrated the in policy and other developments involves con­ complexities of making policies and of formu­ sideration of the costs of making adjustments lating strategies for their implementation. Since in behavior. The timing and magnitude of these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Strategy of Monetary Control 413 responses often differ from historical patterns. In its operating instructions the Committee Past data are only a guide to the significant rela­ tended for most of the year to place the most tionships that constitute the economic structure. emphasis on Mx, though the broader money Some shifts in the demand and supply func­ stock measures were also used. The FOMC tions for money seem to have been under way established ranges of tolerance for Mx and M2 during 1975. Changes in attitudes toward the growth that reflect influences on their behavior liquidity of financial assets and the development in the short run and serve as reference points of alternative money substitutes seem to have against which incoming data on these aggregates affected the way that transactions volume and can be gauged. The ranges cover growth in each interest rates fed through to the demand for measure over a 2-month period, consisting of money. Uncertainty about behavioral relation­ the month of the meeting and the ensuing ships and about the magnitudes of the forces month. When there is uncertainty about the that drive them makes it necessary to sift in­ economic factors that are affecting money coming data for its potential information con­ growth, the Committee has often used a fairly tent. The greater the uncertainty, the larger a wide band of 3 to 4 percentage points on an divergence relative to expectations has to be to annual-rate basis. This may also be done when make the decision-maker willing to act on the past growth has been unusually slow or fast and basis of what appears to be new information. some deviation in the opposite direction is ac­ When data are volatile or the degree of confi­ ceptable. When the direction of reserve behavior dence in postulated relationships is low, unex­ and interest rates over the long run is deemed pected deviations can contain very little infor­ clear, the Committee often raises or lowers the mation in a short time period. In these circum­ bounds of the ranges for the aggregates to re­ stances, the data have to be collected and duce the likelihood of responses by the Manager tracked for a longer period of time than other­ that are not in keeping with these expectations. wise. As 1975 wore on, policy-makers became Incoming data on, and projections of, the increasingly concerned that the relationship of aggregates are compared with their ranges each to economic activity was becoming less week to determine the Desk’s posture with re­ dependable. spect to reserve provision and the Federal funds rate. The Manager’s response to undesired be­ havior is constrained by a range of permissible Short-Run variation in the weekly-average Federal funds Operational Strategies rate. The range usually centers around a rate The Committee’s operational strategy is de­ believed at the time of the meeting to be con­ signed to be responsive to incoming information sistent with the long-run objectives for the ag­ in a way that fosters the long-run objectives. gregates. In addition to the range on the Federal At each meeting the Committee examines pat­ funds rate, the Committee guides the Desk on terns for bank reserves and interest rates that the emphasis it should place on other policy are expected, over time, to be consistent with considerations, such as conditions in domestic the intended growth in the money stock meas­ and/or international financial markets. Informa­ ures. It seeks to take account of the forces tion received between Committee meetings may already in motion and their likely impact on indicate inconsistencies among the group of money over the period ahead. Unexpectedly policy specifications or reveal significant new rapid or slow growth could suggest that modifi­ developments. In such event, the FOMC may cation of the current operational posture is modify its original instructions to produce a needed to lead toward desired long-run objec­ stronger or weaker response to the behavior of tives. The Committee’s instructions to the the aggregates. Manager of the System Open Market Account In implementing open market policy, the specify a stance with respect to reserve provi­ Manager assesses and responds to new data, sion and how the Trading Desk should vary it chiefly financial flows. Since such data are in response to deviations in money growth. highly disaggregated and cover short periods of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin □ May 1976 time, it is often difficult to extract useful infor­ short-term market rates to fall substantially as mation from them. Information on the aggre­ well, and growth in the broader money supply gates is used to develop objectives for the Trad­ measures accelerated over this interval. Bond ing Desk. The time horizon at the Desk is short, yields fell for a while, but greatly enlarged as the aims for reserve availability in the bank­ public and private borrowings and concern ing system are framed in terms of the statement about the creditworthiness of some State and week. In deciding on the manner and timing local government instrumentalities worked to of open market operations, the Desk evaluates limit these declines. a broad range of data on and projections of By March, Mt was beginning to grow at a reserve demands and supplies. It combines these substantial pace. While expansion had initially statistical estimates with information revealed appeared to be below or within the tolerance by a continuous monitoring of the market for ranges set at the first two FOMC meetings of bank reserves. The Desk’s procedures involve the year, Mx then seemed to be exceeding the an understanding of underlying short-run be­ ranges agreed upon at the March meeting. M2 havioral relations that make up a framework for and M3 began to increase at relatively rapid evaluating its observations. rates. At that point, the Account Manager under normal circumstances would have permitted the Federal funds rate to begin rising, but the Com­ mittee on March 27 instructed him to treat 5lh M O N E T A R Y PO L IC Y IN 1975 per cent as the approximate upper limit for the The following discussion highlights significant weekly average for the time being, in view of developments over the past year and focuses on weakness in the economy and of sensitive con­ the information available to the FOMC at sev­ ditions in the financial markets, especially the eral key points to provide examples of the bond markets. Still, at the end of the first Committee’s policy-making procedures. quarter, it was generally believed in the mar­ ketplace that the scope for further interest rate declines was limited. January to M id-April When the year began, monetary policy was in M id-April to Mid-September the midst of a stimulative phase in order to counter the built-up forces of recession. Real The information available for the Committee gross national product (GNP) was declining, meeting in April showed a mixed picture. This and projections suggested that economic activity meeting is reviewed more intensively in this would continue to recede in the first half of the report, because it provides an interesting illus­ year. Information on the behavior of prices tration of how a broad range of information can suggested some moderation in the rate of in­ be used to deal with the conflicts and uncertain­ crease, but unemployment was rising. ties inherent in policy-making. To encourage faster monetary and credit ex­ Data for the first quarter indicated that the pansion, the discount rate was reduced from 13A rate of decline in industrial production was per cent to 6lA per cent in three steps during slowing, that economic activity was likely to the first quarter and reserve requirements were recede only a little further, and that the rise in also cut. The narrowly defined money supply the price level was moderating. Inventory liqui­ (Mx) had expanded at a 4.7 per cent rate in the dation had remained rapid, but it seemed likely fourth quarter of 1974. While the System acted that the reduction in stocks would taper off and to increase the availability of nonborrowed re­ provide a boost to the expected recovery. How­ serves and the Federal funds rate fell from about ever, the near-term outlook for a substantial 8V2 per cent at the end of December to 5 Vi per improvement in the unemployment rate was cent by mid-March, money growth slowed a bit bleak, and strong upward pressure on wages was further in the first quarter of the year. still evident. The decline in the funds rate prompted other On the financial side, business demands for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Strategy of Monetary Control 415 short-term credit continued weak, though cor­ surrounding the prevailing money market con­ porate bond financing to strengthen liquidity was ditions. exceptionally large. As business loans were The implementation of the policy directive repaid, banks absorbed a sizable volume of new adopted in April illustrates how the Manager Treasury issues. Growth in and M2 appeared assesses and responds to data available after to be strengthening markedly. Apparently, the FOMC meetings. While estimates of Mx showed effects on money demand of earlier declines in adequate growth in the first few weeks after the interest rates were being bolstered by the accel­ meeting, by early May it appeared that expan­ erated payments of tax refunds, which were sion for April and May combined would be at adding to income flows. There was widespread a rate that was close to the bottom of the concern in the securities markets about the abil­ tolerance range. Projected growth in M2 was ity to meet the very heavy financial needs of revised steadily lower over the inter-meeting the Treasury without crowding out the private period, and by the final week it fell somewhat borrowing that was likely to develop as the below the range. economy moved strongly into recovery. Against this background the System sought Taken together, the range of information to provide nonborrowed reserves somewhat suggested that the economy was likely to begin more readily, but acted cautiously awaiting fur­ to recover soon but that the turning point had ther data to confirm the initial signs of monetary not yet been reached. It appeared that the re­ weakness in order to avoid exaggerated market covery could be sluggish because demand in effects during a period of heavy Treasury fi­ several important sectors, such as automobiles nancing. Participants were preparing to bid for and housing, was likely to remain weak for a sizable volume of issues in the quarterly some time. Moreover, there was considerable Treasury refunding, and an aggressive easing uncertainty about how much stimulus would of reserve objectives during such a period could arise from the recently enacted program of Fed­ have had a stronger influence than warranted by eral tax rebates and increases in transfer pay­ the information available to the Desk. ments and about how soon consumer spending The Desk encountered difficulty in achieving would begin to respond. The Committee wanted some easing in the money market, and the to encourage the expanded financial flows nec­ Federal funds rate rose after the April meeting essary to facilitate an upturn, but it was also rather than declining as was expected. There mindful that overly rapid monetary growth, if was the usual uncertainty about the projected sustained, could revive inflationary fears and be impact on the supply of nonborrowed reserves detrimental to the economy in the future. from the market factors not under the System’s To frame policy over a longer horizon, the control. At one point these uncertainties were Committee at this time began formulating ob­ compounded by an interruption in the wire jectives for four measures of the aggregates in transfer systems for funds and securities. The terms of growth ranges for annual periods. The Desk made record volumes of transactions over ranges selected were 5 to IVi per cent for Ml9 the period, buying $1.1 billion of Treasury 8V2 to 10% per cent for Af2, 10 to 12 per cent coupon issues and $2.6 billion of bills outright for M3, and 6V2 to 9Vi per cent for the bank and adding $2.8 billion of reserves, on average, credit proxy. In the near term, growth in money through repurchase transactions in the market.1 was expected to be more rapid even if prevailing Bank demands for nonborrowed reserves were money market conditions were to be main­ increasing, partly because of the growth of tained. The Committee was prepared to accept required reserves, and the System wanted at a temporary acceleration in monetary expan­ least to meet such needs. At the same time, the sion, adopting tolerance ranges of 6V2 to 9 per 1 On days when the Desk was arranging repurchase cent and 9V2 to 11% per cent for Mx and M2, agreements, its transactions took into account short-term respectively, over the 2 months ending in May. investment orders of customers. It made matched sale- The range of variation specified for the Federal purchase transactions between the System and their accounts, rather than arrange two types of repurchase funds rate was 4% to 5% per cent, roughly contracts in the market at the same time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin □ May 1976 supply of nonborrowed reserves was being est change in System objectives. It was not clear drastically reduced by inflows of cash to Treas­ whether the deceleration in the aggregates indi­ ury balances at Federal Reserve Banks.2 cated a significant weakening in the economy, The average effective Federal funds rate in­ a shift in money demand, or a temporary aber­ creased from 5.44 per cent in the April 16 week ration in the data. The cautious response by the to a peak of 5.71 per cent in the final week Desk would work to counter a slowing in money of the month. It began to decline thereafter, and growth, but given its limited nature it would trading generally fell into the 5 to 5lA per cent not be difficult to offset should growth soon preferred range just before the May FOMC rebound. meeting. Later on in the quarter, data showed that Desk actions were also guided by the FOMC expansion of Mt was accelerating to a greater concern about developments in the financial degree than had been expected to result from markets. Interest rate expectations had reflected the impact of tax rebates and stepped-up Gov­ some anticipation that Treasury borrowing ernment transfer payments. When M1 continued needs would exert upward pressure and that the to run substantially above expectations, the more rapid money supply growth toward the end System acted in late June to restrain reserve of the first quarter would be followed by a growth. The Federal funds rate had been fluc­ tightening of System policy. The yield increases tuating around 5Va per cent in an FOMC-pre­ were particularly apparent in the municipal bond scribed range of 5 to 6 per cent. Following a market in view of the financial troubles of New rise in this rate, yields in the securities markets York City and the Urban Development Cor­ adjusted sharply upward. poration of New York State. The funds rate rose to about 6 per cent in As both the slowdown in the money growth early July and, though the FQMC agreed on and the Desk’s encouragement of a lower Fed­ June 26 to amend the upper constraint on this eral funds rate became evident, the securities rate from 6 to 6Va per cent, the Manager did market began to improve dramatically. The not need to use the additional leeway as incom­ Treasury’s disclosure that its near-term borrow­ ing data suggested some weakening in the ag­ ing needs were turning out lower than antici­ gregates. At the July meeting an analysis sug­ pated earlier gave the rally a strong boost, gested that growth in money and credit was particularly in the Government securities mar­ likely to slow considerably but this could be ket. The refunding and other recent Treasury temporary, given an apparent strengthening of issues encountered good demand, partly because the economy. There were some differences banks continued adding to portfolio holdings as within the Committee about how best to respond loans were repaid in volume. Nevertheless, the to incoming monetary data in view of its erratic schism between issues of different quality in the behavior and the difficulty of assessing the spe­ municipal market became more pronounced and cial factors that were continuing to distort the some local instrumentalities began to have observed growth. There were uncertainties difficulty in raising needed cash. about the underlying strength of the economy Over the period, the Desk had responded to and the impact of relatively high levels of mar­ weaker than anticipated growth in money sup­ ket interest rates at the current stage of the ply, though its actions were conditioned by the business cycle. While the Committee retained desire to avoid exaggerated reactions to a mod­ the earlier annual longer-run growth ranges for the aggregates, it placed them on a quarterly- 2 In 1975 massive open market operations were average basis for the year ending in the second needed to offset the impact of intramonthly swings in quarter of 1976 in view of the erratic movements Treasury cash balances at Reserve Banks. The Treasury had been intensifying its efforts to minimize its cash of monthly figures on money balances. For the holding at commercial banks. Generally, balances at near term, the FOMC agreed to maintain pre­ Reserve Banks rose sharply toward the end of each vailing money market conditions provided that month. The build-up in balances was particularly large just sifter the mid-April tax date. growth in monetary aggregates appeared to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Strategy of Monetary Control 417 slowing substantially from the bulge in the sec­ with a 53A to 7 per cent range that had been ond quarter. set in August. While the Manager responded to initial indi­ Initial data received after the September cations of higher than desired monetary expan­ meeting seemed to suggest that Mx was indeed sion after the July meeting, newer data soon strengthening, and the Manager sought to en­ suggested a deceleration to rates of growth courage a slight firming in money market con­ within the ranges specified by the Committee, ditions with the objective of moving the Federal and the Desk sought steady conditions of reserve funds rate up toward the midpoint of its range availability. Federal funds traded generally in of tolerance. But the estimates were revised a 6Vs to 6V4 per cent range until early Sep­ down, and by early October it appeared that tember. At that time, growth was relatively growth would again fall below desired rates. In slow, compared with the short-run ranges spec­ view of the pronounced weakening and the ified at the August meeting. But the FOMC unsettled conditions in the municipal bond mar­ agreed on September 5 that the Manager should ket, the Committee on October 2 instructed the be instructed to maintain current money market Manager to aim immediately to reduce the funds conditions in view of the likelihood of a rate to 6 Vs per cent and then to 6 per cent shortly strengthening in demands for money and credit thereafter. The FOMC also agreed to reduce the and the prospect that any decline in the Federal lower constraint on this rate to 5% per cent. funds rate might have to be reversed shortly. This response reflected the recognition that emerging strains in the financial sector could jeopardize the economic recovery. Investor Mid-September Through December concern about the safety of assets was growing, The economic data available at the September including a measure of market concern about FOMC meeting contained several indications the New York City banks because of their close that a vigorous recovery was in prospect. At association with New York City and State the same time the outlook for price inflation had problems. Even though prospects for loan worsened somewhat. It was expected that the growth continued weak and further interest rate relatively strong expansion in nominal GNP declines seemed in store, the New York City would add to demands for money and credit banks bolstered liquidity by selling additional over coming months. Conditions in the securi­ certificates of deposit (CD’s), sometimes at rates ties markets had become somewhat unsettled, equal to or exceeding those paid by other major partly because of the escalating problems of money center banks, in contrast to the usual New York City and worries about the difficulties pattern in which major New York banks pay facing some other municipal borrowers. slightly lower rates than most others. In view of this outlook, the Committee Over the closing months of the year, interest adopted aggregate specifications that were likely rates fell to lower levels than had been antici­ to be consistent with little change or a possible pated earlier, though money growth remained firming of money market conditions over the sluggish. At the same time, the short-run be­ ensuing month. Some members advised action havior of was even more volatile than usual. to achieve a modest firming whenever feasible Incoming deposit data were difficult to interpret, without disrupting markets, as it would help and the outlook for the 2-month growth rates restrain monetary growth later on. But others was often revised significantly. preferred not to firm policy on the basis of At its October meeting the Committee re­ projections that such growth would exceed de­ tained its longer-run annual growth rate range sired rates over the long run, though they would for Ml9 which now extended through the third act promptly if and when actual growth acceler­ quarter of 1976. It also reduced the lower end ated substantially. The FOMC established a 6 of such ranges for M2 and M3 by 1 percentage to 7 per cent allowable range of variation for point to allow for pressures on market interest the Federal funds rate at this meeting, compared rates stemming, in part, from heavy Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin □ May 1976 borrowing that might serve to moderate inflows make loans. In turn, this may have contributed of time and savings deposits. At that and the to the slow growth of demand deposits. subsequent meeting, the FOMC reduced the Programs were enacted for New York City allowable range of variation for the Federal in December that enabled it to reduce interest funds rate. While growth in monetary aggre­ payments on outstanding securities and to re­ gates fell short of the 2-month ranges, this was fund maturing bonds. Plans included seasonal not evident until late in the period after the loans by the Federal Government for a 3-year October meeting and after the decline in the period. While the immediate problems were funds rate was slowed. The funds rate then resolved, the markets were concerned that the hovered around 5Va per cent over the last part moratorium that had been adopted for some of November before edging down to 53/16 per New York City notes could affect the demand cent in mid-December. for municipal securities more generally. At the December meeting evidence suggested that flows of money into corporate savings ac­ counts, as a result of a recent regulatory change, SU M M A R Y were depressing growth in Mt. There was con­ siderable uncertainty about the size of this effect A N D C O N C L U D IN G C O M M E N T S on demand deposits and whether it would alter Developments in 1975 illustrated the difficulties the public’s demand for money. In view of these of controlling the aggregates and raised some problems, many members preferred to make the questions about how objectives for these meas­ Manager’s response less sensitive to incoming ures should be established and evaluated. Ex­ data on monetary aggregates. The Committee pansion in Mx for the full year decelerated to instructed the Desk to maintain prevailing bank a 4.4 per cent rate as its behavior was unusually reserve and money market conditions, with the sluggish in the first and final quarters. The Federal funds rate around 5lA per cent, unless annual growth was slower than might have been growth in the aggregates deviated significantly expected based on past experience in similar from the midpoints of their ranges. Subsequent stages of the business cycle. But looking at data suggested that growth in Mx was falling broader deposit aggregates, financial flows, and well short of its range of tolerance, and the markets, the expansion of liquidity in the econ­ Manager again moved to seek a more accom­ omy appeared ample. Growth in consumer-type modative reserve climate as the year drew to deposits was relatively strong and M2 increased a close. by 8.2 per cent, up from 7.7 per cent in 1974. The Manager’s actions in the closing months Declines in interest rates gave rise to substantial of 1975 were attuned to the developing strains deposit inflows to thrift institutions so that in the banking system. Investors became sensi­ growth in M3 accelerated from 7.1 per cent to tive to the quality of bank assets—especially 11.1 per cent. bank holdings of certain municipal securities While there was much concern that the fi­ and categories of loans that involved perceived nancial needs of the Treasury would thwart risks of loss. The bankruptcy of W. T. Grant private efforts to rebuild liquidity, this did not focused additional attention on loan quality, and occur. The Federal Government borrowed a many banks bolstered their reserves for potential record $85 billion over the year, compared with loan losses. For a while, CD rates rose consid­ $12 billion in 1974 (Table l).3 At the same time erably relative to rates on Treasury bills as some corporations sold an unprecedented $30 billion investors sought to place funds in the safest of of bonds. But these increases in supplies were financial assets. While the rate differentials later absorbed more readily than had been expected, narrowed to a more typical spread, investors remained selective in their CD holdings. Banks’ 3Relative to the size of the economy, Treasury bor­ desire to improve liquidity in the latter part of rowing was much smaller in 1975 than in some years the year may have affected their willingness to during World War II. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Strategy of Monetary Control 419 TA BLE 1 monetary policy induced deposit inflows. Aside from rebuilding their investment portfolios, Total debt raised banks reduced their reliance on funds purchased in credit m arkets, by sector in the CD market for the first time in 6 years. The drop in CD’s was reflected in a slowing 1970 1971 1972 1973 1974 1975 of growth in the bank credit proxy. Savings and Sector loan associations repaid advances to the Federal Billions of dollars U.S.Govt.. Treasury TA BLE 2 securities1 ....... 12.9 25.6 17.4 9.7 12.0 85.2 Agency securities 8.2 3.8 6.2 19.6 21.4 10.1 State and local govt. 11.2 17.6 14.4 13.7 17.4 15.4 A cquisitions of Federal G overnm ent Corporate and foreign bonds.. 23.8 24.8 20.2 12.5 23.3 34.5 securities, by sector Mortgages .............. 26.4 48.9 68.8 71.9 54.5 54.6 Short-term and all other2 ............... 17.9 28.4 58.4 103.9 83.9 -2.7 1970 1971 1972 1973 1974 1975 Sector Total ........... 100.4 149.1 185.4 231.3 212.5 197.1 Billions of dollars Percentage of total raised F.R. System Treasury U.S.Govt.: securities1 __ 5.0 6.8 0.8 8.7 3.0 5.7 Treasury Agency securities .5 .8 .6 2.8 1.4 securities1 __ 13 17 9 5 6 43 Commercial banks Agency securities 8 2 3 8 10 5 Treasury securities 6.9 3.1 2.4 - 8.8 - 2.6 29.1 State and local govt. 11 12 8 6 8 8 Agency securities 3.5 3.8 4.1 7.6 3.6 1.2 Corporate and Other financial foreign bonds.. 24 17 11 5 11 18 Treasury Mortgages .............. 26 33 37 31 26 28 securities ......... 1.1 - 1.7 2.3 - 1.1 2.5 18.8 Short-term and Agency securities 2.7 4.3 4.8 2.0 3.2 8.0 all other2......... 18 19 32 45 39 -2 Private domestic nonfinancial Total ........... 100 100 100 100 100 100 Treasury securities ......... -11.1 - 8.6 1.6 7.4 6.7 21.6 Agency securities 2.1 - 5.4 .1 11.4 11.4 -.6 1 Includes nonmarketable debt, savings bonds, loan partici­ Foreign2 .................. 9.1 26.3 8.4 .3 3.6 7.8 pations not elsewhere included, and financing of budget agency All other .................. 1.8 .3 - 1.7 1.3 -.7 2.4 debt. Government National Mortgage Association (GNMA)guaranteed securities backed by mortgage pools are included Total3 21.1 29.4 23.6 29.4 33.5 95.4 in the agency securities category. 2Includes consumer credit, business loans, other loans not Percentage of total acquisitions elsewhere classified, open market paper, and repurchase agreements. Note.—Because of rounding, figures may not add to totals. F.R. System Estimated from flow of funds data of the Board of Governors. Treasury securities1 __ 24 23 3 30 9 6 Agency securities 2 3 2 8 1 in part because net demands on the credit mar­ Commercial banks kets and the banking system were reduced. Treasury securities ......... 33 10 10 - 30 - 8 31 Internal corporate cash flows were strong, and Agency securities 17 13 17 26 11 1 Other financial this enabled corporations to reduce short-term Treasury securities ......... 5 - 6 10 - 4 7 20 borrowing substantially. The $10 billion net Agency securities 13 15 20 7 10 8 paydown of private short-term debt, due entirely Private domestic nonfinancial to a reduction in business borrowing, stood in Treasury securities ......... - 53 - 29 7 25 20 23 marked contrast to the $70 billion rise in such Agency securities 10 - 18 1 39 34 - 1 obligations the year before. 43 89 36 1 11 8 All other .................. 8 1 - 7 4 - 2 3 Banks also took steps to improve their li­ Total3 100 100 100 100 100 100 quidity. As business loans were repaid in sub­ stantial volume and other loan demand was 1See Table 1 for explanation of Treasury securities category. weak, banks acquired sizable amounts of 2 Breakdown between Treasury and Federal agency securities not available. Treasury securities (Table 2). They bought $29 3For breakdown between Treasury and agency securities, billion, compared with a net liquidation of $3 see U.S. Govt, sector in Table 1. Note.—Because of rounding, figures may not add to totals. billion in the previous year, as the stimulative Estimated from flow of funds data of the Board of Governors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin □ May 1976 TA BLE 3 on Federal agency issues declined somewhat, mostly reflecting the relative behavior of sup­ Selected interest rates plies of these issues. In private debt markets, In per cent yields generally declined, though the extent of 1974 1975 the drops depended on investor attitudes toward the safety and quality of the securities. Rates Dec. Feb. Apr. June Oct. Dec. Events in 1975 once more demonstrated that 31 19 23 18 1 31 there are no simple rules for formulating and SHORT-TERM implementing a policy strategy. Policy-makers Federal funds— continually seek to take into account the effect weekly-average effective rate __ 7.35 6.29 5.54 5.31 6.36 5.18 of new developments on the relationships 3-month Treasury bill — average among monetary aggregates, interest rates, and bond yield equiva­ lent ........................ 7.34 5.56 5.83 4.91 6.77 5.36 ultimate economic objectives in framing policy. Discount rate—F.R. While an understanding of these important in­ Bank of New York 7.75 6.75 6.25 6.00 6.00 6.00 3-month CD’s 9.25 6.49 6.25 5.55 7.01 5.68 teractions develops over time, the implications of incoming data and the kinds of responses they LONG-TERM should generate in the short run remain a critical U.S. Govt, securities (3- to 5-year) ... 7.26 6.71 7.90 7.14 8.21 7.28 question in formulating policy strategies. Treasury bond due 1993-98 ............... 7.75 7.59 8.30 7.85 8.43 7.93 It is often not possible from month to month Recently offered to isolate the impacts of particular supply and Aaa-rated utility bonds ........-.......... 9.67 9.08 9.71 9.14 9.70 9.10 demand forces that are affecting the behavior State and local govt, bonds: of the several monetary aggregates. In 1975, Aaa-rated 6.70 6.00 6.45 6.30 6.92 6.45 A-rated ........... 7.20 6.55 7.20 7.40 8.05 7.76 Mx growth was at times dominated by short-run influences, such as the massive tax rebate and Note.—Data from Board of Governors, Federal Reserve refund program. It was not clear at the time Bank of New York, and Moody’s Investors Service, Inc. whether the rapid expansion in the spring sug­ home loan banks, thereby enabling this agency gested an upturn in transactions demand or if to repay debt. Thrift institutions increased their demand deposit balances were temporarily holdings of Treasury securities and mortgages boosted by the pattern of the Treasury’s pay­ in response to good deposit inflows. ments to the public. When the New York City Interest rate movements over the year (Table fiscal crisis came to the fore, changes in attitudes 3) were influenced by the shape of credit flows about the quality of money and credit market and by responses to System policy. The decline instruments seem to have affected the desired in the Federal funds rate and its temporary rise composition of portfolios of liquid assets as well over the summer were followed by similar as the willingness of banks to supply loans and changes in other short-term rates. The Federal to acquire interest-bearing deposits. funds rate declined from around l lA per cent Over a longer horizon, institutional and regu­ in early January to about 53/16 per cent in the latory changes affect the properties of monetary final week of the year. Treasury bill rates de­ assets. Using 1975 again as an example, a clined by about 1% percentage points to 5.18 change in Regulation Q that permitted banks to per cent for the 3-month issue. Rates on private issue savings deposits to small businesses ap­ short-term investments declined by even more pears to have altered the way that some firms as supplies shrank. The yield curve became manage cash balances and the amounts of de­ steeply upward sloping, particularly for Treas­ mand deposits needed to finance their transac­ ury issues, as financing in the intermediate- to tions. Over the near term, it probably retarded longer-term area was relatively heavy. While the growth of Mt relative to that of M2. In rates on Treasury issues due in 5 years or longer situations like these, it becomes difficult to ended the year slightly higher on balance, those assess the appropriateness of a particular long- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Strategy of Monetary Control 421 run objective for a monetary aggregate and how relationship to economic activity are likely to the Desk should respond to incoming data on persist. money when it diverges from expectations. It seemed evident, as the year drew to a close, As the year drew to a close, these uncertain­ that the performance of the economy was im­ ties led the Committee to take steps that reduced proving and that the relatively slow growth in the responsiveness of the Manager’s stance to M1 had probably been due to a downward shift short-run changes in Mx growth. In early 1976 in the public’s demand for this aggregate. Thus, the FOMC also began to place additional em­ the behavior of a particular monetary measure phasis on M2 as one of the determinants of open cannot substitute for an appraisal of the econ­ market actions. These refinements in policy omy as a whole in the formulation and imple­ strategies constituted part of a response to mentation of policy. And 1975 seemed to con­ changes in underlying economic relationships. firm that policy-makers’ judgment, based on an At the same time, uncertainties about the long- extensive range of information, is more effec­ run significance of developments affecting the tive than invariant rules for guiding the behavior demand for, and supply of, money and its of policy instruments. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Improving the Monetary Aggregates R ep o rt o f th e A d v iso ry C o m m ittee o n M o n etary S tatistics Following are the introduction and summary of adjusted demand deposits plus currency in the recommendations of a report assessing the ade­ hands of the public—generally termed Mx— quacy of the Federal Reserve System’s tech­ may be important for policy purposes). In mak­ niques for measuring the monetary aggregates. ing these decisions, we have been guided as far The report1 was prepared by a special commit­ as possible by received doctrine among leading tee of prominent economists. monetary economists and practitioners in mon­ etary policy, rather than imposing our views as to the optimal theoretical approach to policy issues. Indeed, the views of members of the IN T R O D U C T IO N Committee differ substantially on these issues. The Board of Governors requested this Com­ The Federal Reserve’s present basic monetary mittee to review the basic monetary statistics statistics are the product of many years of in­ (especially the so-called monetary aggregates) tensive work—by independent research workers used by the Federal Reserve in formulating and as well as by Federal Reserve staff members. conducting monetary policy, to evaluate their The statistics have been steadily improved over adequacy, and to present suggestions for their the years by repeated revisions. We have been improvement. It asked the Committee to study impressed by the care and quality of work and make recommendations only on the statis­ devoted to collecting and combining the data tics in question—not to evaluate monetary pol­ that comprise these series. Yet conceptual diffi­ icy or to investigate the significance of the culties have led to continuing debates over some aggregates relative to interest rates or credit of the series, and technical problems of data market indicators. collection and processing have prevented com­ We have adhered rigorously to this directive. pilation of series in full accord with the concep­ It is impossible, however, to select the monetary tual foundations. In view of the substantial totals, or aggregates, to examine without to weight given monetary aggregates in recent some extent judging their usefulness for policy years, it is important that the data used be the purposes (for example, deciding that the best that it is possible to obtain. “money stock” as usually defined to include As we emphasize in the section on conceptual issues, no one monetary aggregate is clearly preferable to all others on all scores; each has Note.—Committee members are G. L. Bach (Stan­ its theoretical and practical strengths and weak­ ford University), Chairman; Phillip Cagan (Columbia nesses as a guide to, or intermediate target for, University), Executive Secretary; Milton Friedman (University of Chicago), Clifford Hildreth (University monetary policy operations and as a measure of Minnesota), Franco Modigliani (Massachusetts Insti­ of the effectiveness of such operations. Given tute of Technology), and Arthur Okun (The Brookings our terms of reference and the limitations im­ Institution). Paul McCracken (University of Michigan) was also a member of the Committee originally, but posed by the time available, we have concen­ withdrew because of the pressures of other duties. trated mainly on the reserve base, or “high- 1 Copies of the full report may be obtained for $1 powered” money, and on the main depositeach (or 85 cents each for 10 or more sent to one based series (M1? M2, M3, M4, and M5), sug­ address) from: Publications Services, Division of Ad­ gesting changes that we believe are feasible at ministrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551. a reasonable cost and that could substantially Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Improving the Monetary Aggregates 423 improve the conceptual validity and measure­ recommend prompt establishment of a weekly ment accuracy of the aggregates involved. We reporting sample of large and small nonmember provide first a summary of our major recom­ banks, and collection of weekly-average-ofmendations, with very brief explanations of daily-deposits data from nonmember banks four each; then a more complete analysis of the times annually in connection with call reports. conceptual and definitional issues involved; and Recent experiments with a weekly reporting finally a detailed rationale for the specific statis­ sample of large and small nonmember banks tical recommendations made. convince us that regular collection of such ad­ ditional information could dramatically reduce the large errors now often made in estimating nonmember bank deposits between call report While, within the broad framework of our dates, and that such data could be obtained and assignment, we have had complete inde­ processed without unreasonable cost to either pendence as to topics to consider, approaches reporting banks or the Federal Reserve. In ad­ to issues involved, and recommendations, we dition, the present limitation of call report data wish to acknowledge the extensive and invalu­ to a single day is a substantial additional source able assistance provided by members of the of error that could be eliminated by collecting Board’s economic and statistical staff. They weekly-average data on call reports. In combi­ have been fully cooperative and have produced nation, these two reforms could substantially several dozen special studies at our request, eliminate the errors now faced in estimating many of them of very substantial magnitude. nonmember bank deposits.2 Without this staff work we would have faced a vastly longer task of contracting out such studies to others; indeed no outsider could have 3. C onsolidation of accounts at accomplished a number of the detailed tasks we different financial institutions assigned in examining both present statistical We tentatively recommend a new, simpler procedures and alternatives we wished to con­ process of handling interbank deposits and cash sider. We deeply appreciate this assistance. items in process of collection when consoli­ The staff has combined these studies into dating data from different financial institutions, eight Staff Papers, which will be published as in order to eliminate certain biases and to a separate volume. obtain a more accurate measure of and other aggregates. SU M M A R Y O F There is general agreement that cash items in process of collection (mainly checks) should R E C O M M E N D A T IO N S be deducted from demand deposits on banks’ books, in order to avoid the double counting of 1. A lternative concepts of m oney deposits already credited to accounts of recipients Since no one monetary aggregate is clearly but not yet deducted from accounts of payers. preferable to all others on all scores, we rec­ However, serious problems arise in making this ommend that the Federal Reserve publish regu­ adjustment because some banks that clear checks larly the “reserve base, ” and the major mone­ through correspondents show checks in process tary aggregates currently designated M1? M2, of collection on their balance sheets as ‘ ‘due from M3, M4, and M5, although with substantial banks” instead of “cash items in process of modifications as indicated below. collection”; because cash items include checks 2As this report is being completed, we are informed 2. N onm em ber bank deposits that the Federal Deposit Insurance Corporation will begin to collect from nonmember banks 7 days of To reduce large errors in preliminary esti­ deposit data for the week surrounding each call report mates of deposits at nonmember banks, we date, beginning in March 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin □ May 1976 not drawn on private accounts (for example, intermediate target variable. As there is no one checks on U.S. Treasury, interbank, and some ideal concept of money for domestic monetary foreign accounts, not included in Ml9 as well as control purposes, so there is no one ideal con­ money orders, redeemed Government bond cept for an open economy or for the world coupons, and food stamps); and for other reasons economy; the existence of international transac­ to be detailed later. tions that interact with domestic transactions in To eliminate this apparent bias (overstate­ the United States makes the definition problem ment), we tentatively propose an alternative more difficult than for a purely domestic econ­ means of consolidating the accounts of the omy. However, given the theoretical difficulty banks involved—basically by deducting directly of prescribing any ideal amount of foreign or from gross demand deposits (which include international money to be included in the U.S. “due to banks”) bath “due from banks” and money stock, the practical difficulties in obtain­ “cash items,” in lieu of the present more elab­ ing the desired data even if they could be orate set of adjustments made to obtain adjusted conceptually specified, and the relatively modest demand deposits. Preliminary calculations made role played by international transactions in the at our request by the Board’s staff suggest that U.S. economy—we recommend as a practical this change would reduce the level of by matter use of a concept of money focused pri­ some $8 billion from presently reported figures marily on the domestic economy. and would reduce week-to-week and month-to- At present, all deposits of foreign individuals month variations in the reported money stock, and businesses, foreign commercial banks, and which may now reflect spurious fluctuations in foreign central banks and other official institu­ the volume of domestic and foreign checks in tions at banks in the United States are included process of collection. Since the reasons for the in the U.S. money stock; and no U.S. dollar large reduction in the reported level of Mx under deposits abroad (for example, Euro-dollars) are this new method as compared with the method included, no matter by whom they are owned. now used are not entirely clear, however, we We recommend including foreigners’ deposits recommend adoption of the proposed change in the United States when these are likely to only tentatively, subject to further investigation be used primarily for purchases of U.S. goods, by the Board along the lines currently being services, and securities; and excluding all U.S. undertaken. dollar deposits abroad, mainly because there is no practical way of incorporating these data into current U.S. money stock series even though 4. Foreign deposits in U nited States some such balances may be held primarily with and U.S. dollars held abroad a view to purchases in the United States. Ap­ To obtain the most useful aggregates for plying these criteria, we recommend that de­ U.S. policy decisions and actions, we recom­ posits of foreign commercial banks and foreign mend elimination from the U.S. monetary ag­ central banks and other official institutions in gregates of deposits held in the United States the United States be excluded from the U.S. by foreign commercial and central banks and money stock, since these are apparently held other official institutions, and continued exclu­ primarily for clearing Euro-dollar transactions, sion of U.S. dollars (Euro-dollars) held abroad. for financing foreign exchange transactions, and In an open economy like that of the United as international monetary reserves; but that de­ States, interactions between domestic and inter­ posits of foreign individuals and businesses national transactions on trade and capital ac­ continue to be included. counts make it impossible for the monetary The Federal Reserve should, however, con­ authorities to consider only domestic conse­ tinue to publish, as memorandum items, data quences of their actions—and by the same token on deposits of foreign commercial and central make any purely domestic measure of the banks and other official institutions in the United money stock to a degree unsatisfactory as an States and U.S. dollar deposits abroad, so that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Improving the Monetary Aggregates 425 those wishing to include them in the U.S. mon­ aggregates, we recommend that the Fed publish etary aggregates, or to use them for other pur­ further information on the short-run, nonsysteposes, will be able to do so. matic or transitory, variability of the monetary aggregates. Apart from seasonal and basic longer-term 5. Seasonal adjustm ent movements, the monetary aggregates are subject of m onetary aggregates to a variety of short-term day-to-day and week- We recommend that the Federal Reserve to-week variations that arise from fluctuating authorities publish periodically the seasonal payments among the Treasury, the public, and adjustment factors they propose to use in arriv­ the banks; items in process of collection; re­ ing at the desired money stock throughout the porting and tabulating errors; and the like. Our year ahead (the ‘‘policy” seasonal), so that the analysis suggests that such day-to-day transitory Fed’s attempts to eliminate seasonal variations variations alone can introduce a substantial, will not be confused with more basic determi­ nonsystematic variability, or error, in reported nation of the desired money stock or other growth rates. From month to month the transi­ monetary aggregate. We further recommend tory component in the annualized growth rate that, in estimating seasonal adjustment factors of is likely to exceed 2Vi percentage points for the money stock looking backward (the one-third of the time; from quarter to quarter, “descriptive” seasonal), the Fed substitute for to exceed V2 percentage point one-third of the the so-called Census Bureau X-ll seasonal time. The comparable transitory component, or adjustment method a modified method that uses error, in M2 will be about half as large. Users the daily data available. should be aware of the dangers of placing too The Federal Reserve authorities and most much emphasis on reported short-term varia­ other users of monetary statistics work primarily tions in the monetary aggregates, especially on with seasonally adjusted series. Because the less than quarterly changes. Federal Reserve itself to a substantial extent controls the amount of money, to isolate any 7. R ecent financial developm ents “natural” seasonal in the money stock—inde­ and the m onetary aggregates pendent of Federal Reserve policy actions—is very difficult. To a considerable degree the Fed Recent financial developments suggest the produces the seasonal variations that exist in possibility of radical changes in the Nation’s observed Ml9 partly in order to reduce or elimi­ payments system in the years ahead. Although nate seasonal variations in interest rates. Thus, we do not recommend changes in the definition when the Fed publishes historical money stock of M2 or other monetary aggregates now, we series, seasonally adjusted by using a “descrip­ do recommend that the Federal Reserve begin tive” seasonal reflecting seasonal patterns in the to collect and publish systematically data on money stock after Federal Reserve policy ac­ new close substitutes for demand deposits (such tions, users should recognize that such season­ as negotiable orders of withdrawal and payment ally adjusted data are not necessarily those that orders of withdrawal accounts and overdraft were used by Federal Reserve authorities in facilities if possible), and that it develop exper­ making their policy decisions. The Fed should imental aggregates that combine demand de­ also continue to publish seasonally unadjusted posits with those savings accounts that are data for the monetary aggregates. readily convertible to a demand basis. Financial innovation and regulatory changes have been rapid in recent years. Combined with 6. Short-run (transitory) variations the prohibition of payment of explicit interest in the m onetary aggregates on demand deposits and other regulatory To highlight the dangers of overem­ changes, high interest rates have stimulated the phasizing short-run variations in the monetary development of various close substitutes for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin □ May 1976 demand deposits. These substitutes are still rel­ and aggregate demand for goods and services. atively small in dollar amounts, but they may Thus, the Federal Reserve and other supervisory be beginning to have substantial effects on the agencies should begin now to collect and ana­ rate at which the currently defined money stock lyze the data needed to understand these new turns over. If these developments continue, they relationships as they develop, including the may change substantially the historical relation­ possible introduction of new monetary aggre­ ships between the present monetary aggregates gates to take new developments into account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

427 Statements to Congress Statement by Arthur F. Burns, Chairman, to which monthly figures on money are subject, Board of Governors of the Federal Reserve the base for measuring the growth ranges was System, before the Committee on Banking, shifted from the level of money balances in a Housing, and Urban Affairs, U.S. Senate, May single month to the average level for a quarter. 3, 1976. As time passed the base periods were moved forward in accordance with the requirements of It is a pleasure to meet once again with this the Concurrent Resolution. In July 1975 we distinguished committee on behalf of the Fed­ presented ranges of monetary growth for the eral Reserve Board. My remarks today will year ending in the second quarter of 1976. In begin with a review of our experience during October ranges were adopted for the year ending the first year under House Concurrent Resolu­ in the third quarter of 1976. And this January tion 133, and I shall then turn to the course the ranges were again moved forward to em­ of monetary policy we consider appropriate for brace the 12-month period ending in the fourth the year ahead. quarter of this year. Last May, when the Board made its first We at the Federal Reserve have viewed these report under the new procedure, the economy growth ranges as useful guides for the conduct was just emerging from the deepest recession of monetary policy. However, the objective of of the postwar period. Unemployment was at monetary policy is not to achieve any precon­ the highest level in many years, and a large part ceived growth rates of monetary or credit ag­ of our industrial plant stood idle. Prices never­ gregates but to facilitate expansion of economic theless continued to rise at a disconcerting rate. activity and to foster stability in the general With confidence of consumers and businessmen price level. We have therefore stood ready to at a low ebb, the task for monetary policy was alter our projected ranges if new developments clear—to facilitate a substantial recovery in in the sphere of employment, or production, or economic activity, and yet avoid aggravating prices suggested the need to do so. During this our problem of inflation. first year under the Resolution, we did not find In that initial report, I indicated that the it necessary to change our annual growth ranges Federal Reserve anticipated that Mx—that is, the for any such reason. money stock defined so as to include only cur­ Some modifications in the growth ranges were rency and demand deposits—would grow be­ advisable, however, because of emerging trends tween 5 and IVi per cent in the year ahead. in financial markets. Last October the ranges For M2—which also includes time and savings for M2 and M3 were widened by reducing the deposits, other than large CD’s, at commercial lower end of each range by 1 percentage point. banks—a range of Wi to \0l/i per cent was Under credit conditions that prevailed in the late specified. For M3—a still broader measure of summer and early fall, it appeared that some­ money balances encompassing, besides the what less growth in these aggregates might be components of M2, the deposits at nonbank associated with any given rate of expansion in thrift institutions—the range was set at 10 to M1—the narrowly defined money stock. More 12 per cent. recently, this January the range for Mx also was When these growth ranges were first adopted, widened by reducing the lower limit by one-half they applied to the year ending in March 1976. percentage point. This adjustment took account, Subsequently, because of the erratic movements among other factors, of the large transfer of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin □ May 1976 funds from demand balances to savings accounts when growth of Ml9 in particular, fell well at commercial banks—a movement occasioned below the desired range. Because of the rather by a regulatory change in November 1975, rapid pace of economic expansion, the relative when commercial banks were granted authority ease of financial markets, and the absence of to offer savings accounts to partnerships and any evidence of a developing shortage of money corporations. and credit, we were inclined to view the slug­ These modifications of the monetary growth gish growth of Mx during that period as reflect­ rates were duly reported to the Congress. Thus, ing fundamental changes in financial technolwhen I appeared before the House Banking ogy—changes that were reducing the amount of Committee in February, I indicated that our money needed to finance economic expansion. range for the year ending in the fourth quarter We also realized, however, that it was impossi­ of 1976 was AVi to IVi per cent for M1? 7Vi ble to predict with any precision the scale on to IOV2 per cent for M2, and 9 to 12 per cent which further economies in the use of money for M3. These departures from the initial pro­ might be realized. We therefore took a series jected ranges are small, particularly so for vola­ of steps to ensure that the rate of monetary tile financial magnitudes whose relation to eco­ expansion would not slow too much or for too nomic activity and prices has always been rather long. loose and imprecise. Beginning in the late fall, open market Growth rates of the monetary aggregates over policies became more accommodative in pro­ the past year have varied from month to month, viding reserves to the banking system. This was as they generally do. But as I have noted on reflected in a decline of Federal funds to around previous occasions, even sizable divergences 5 per cent. Later on, the discount rate was from desired growth rates have little practical reduced, and reserve requirements against time significance if they last only a few months. deposits were also lowered. However, when indications develop that the These actions appear to have borne fruit dur­ monetary aggregates are likely to move signifi­ ing the past few months. Thus far this year, cantly above or below the desired ranges for Mx appears to have grown at an annual rate of a sustained period, remedial action by the Fed­ 6 or 7 per cent, compared with a rate of less eral Reserve may be needed. than 3 per cent over the preceding 6 months. Twice in the past year the System -made The influence of the System’s somewhat more noteworthy adjustments in its policy instruments accommodative policy has shown up also in M2 to ensure that monetary expansion would, over and M3, both of which have grown at more rapid the longer run, stay on a moderate course. In rates during recent months. May and June of last year, when large Treasury Looking back at the past year as a whole, disbursements of tax rebates and special social we find that the pace of monetary expansion was security checks were made, growth rates of all generally in line with the announced ranges. of the money stock measures soared to extraor­ During the 12 months ended in March 1976, dinarily high levels. This development did not grew by 5 per cent, or at the lower end come as a surprise, but its magnitude was much of the projected range. M2, on the other hand, greater than we had expected from the special rose by 9V2 per cent, which was at the midpoint Treasury disbursements. Consequently, we set of its range, while M3 grew by 12 per cent and forces in motion around midyear that were de­ was thus at the top end of its range. signed to return the growth of the aggregates The appropriateness of the monetary policy to their longer-run paths. These actions left their pursued by the Federal Reserve over the past mark only temporarily on short-term market year cannot, however, be evaluated by merely rates of interest, but they had a lasting effect comparing actual rates of monetary expansion on public confidence by confirming the Federal with previously adopted ranges. The fundamen­ Reserve’s commitment to a moderate course of tal questions always are: How well did the monetary policy. economy perform? And did developments in We also did not hesitate to act later last year financial markets contribute to the achievement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 429 of our Nation’s economic objectives? Let me level in history. The unemployment rate has turn now to these basic issues. declined from about 9 per cent to IVi per cent; When our longer-run growth ranges for the the proportion of job losers among the unem­ monetary aggregates were announced a year ployed has diminished substantially; the quit ago, concern was expressed by some econo­ rate in manufacturing has been rising; and the mists, as well as by some members of the amount of overtime work has increased notably. Congress, that the rates of monetary growth we The rate of utilization of our industrial plant were seeking would prove inadequate to finance has also improved. In the major materials in­ a good economic expansion. Interest rates dustries, only 70 per cent of available plant would move up sharply, it was argued, as the capacity was effectively used during the first demand for money and credit rose with in­ quarter of 1975. By the first quarter of this year, creased aggregate spending, and shortages of the rate of utilization of capacity in these indus­ money and credit might soon choke off the tries had climbed to 81 per cent. In some indi­ recovery. vidual industries, notably paper and textiles, the We at the Federal Reserve did not share this rate of capacity use has returned to a level close pessimistic view. We knew from a careful to the peaks reached during 1973-74. reading of history that the turnover of money These gains of production and employment balances tends to rise rapidly in the early stages have resulted in higher personal incomes and of an economic upswing. We also suspected that increased consumer purchasing power. After a changes in financial practices might of them­ long period of decline, the after-tax earnings of selves be acting strongly to reduce the amount workers have increased substantially during the of money needed to support economic expan­ past year in real terms—not only in nominal sion. And we never lost sight of the danger that dollars. Business profits, too, have recorded excessive expansion of money and credit could large gains. re-ignite the fires of inflation and plunge the Throughout this past year conditions in fi­ economy into even deeper trouble. nancial markets have been favorable for eco­ Subsequent events have borne out our judg­ nomic expansion, and they remain so today. The ment. The Nation’s economy has experienced movement of interest rates during the current substantial recovery since last spring, financed recovery contrasts sharply with that observed in in large part by increased turnover of existing past cyclical upswings. Short-term interest rates money balances. During the past three quarters, normally begin to move up at about the same the physical volume of our Nation’s total pro­ time as the upturn in general business activity, duction rose at an annual rate of 8 per cent, although the extent of rise varies from one cycle and there is no clear sign as yet of any diminu­ to another. In the current instance, with inflation tion in the pace of expansion. still continuing and the Treasury borrowing at The rebound of the industrial sector of our an unprecedented rate, the vigorous rebound of economy has been even stronger. Since its low economic activity might well have been ex­ point in April 1975, the output of factories, pected to exert upward pressure on short-term mines, and power plants has increased at an market interest rates. However, after a brief annual rate of 11 per cent. The output of non­ run-up in the summer of last year, short-term durable goods already surpasses its previous rates turned down last fall and have since then peak, and of late the production of durable declined to the level of late 1972. Long-term goods has begun to move up briskly. In Febru­ rates have also moved down; yields on highary and March the output of durable goods grade corporate bonds are at their lowest level advanced more rapidly than the over-all volume in more than 2 years. of industrial production. Declines in interest rates have extended also As the level of business activity rose, the to loans from financial institutions. Interest rates demand for labor strengthened. Employment have come down on residential mortgage loans. across the Nation has increased by Vh million The rate of interest on bank loans to borrowers since last spring and now stands at the highest of the highest credit rating has declined sharply. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 Federal Reserve Bulletin □ May 1976 Rates paid by other bank customers are also improved over the past year. Numerous stories lower; in fact, interest rates on loans to small have recently appeared in the press about sobusinesses and farmers have fallen to their called problem banks, but much of this writing lowest levels since mid-1973. has been misleading—if not altogether inaccu­ Moreover, the stock market has staged a rate. dramatic recovery. The average price of a share True, some of our banks, particularly the on the New York Stock Exchange at present larger banks, got caught up in the euphoria of is more than 60 per cent above its 1974 trough. inflationary developments during the early A large measure of financial wealth has thus 1970’s and permitted their financial condition been restored to the millions of individuals to deteriorate. By now, however, these attitudes across our land who have invested in common have decidedly changed. Last year large banks stocks. increased their holdings of liquid assets by one- Our Nation’s business enterprises have taken third, while reducing sharply their reliance on advantage of the prevailing financial climate to volatile sources of funds. With greater attention improve their liquidity position. Corporations to canons of prudent management, commercial have issued a huge volume of long-term bonds, banks also achieved moderate increases in prof­ and they have used the proceeds largely to repay its—even in the face of a substantial drain on short-term debt and to acquire liquid assets. For earnings from increased provision for losses on a time, access to public markets for funds was bad loans. A large share of bank profits was confined largely to firms with the highest credit used to bolster capital positions, so that the ratio ratings. Of late, however, some lower-rated of capital to risk assets, which had declined firms have found a more receptive public market steadily during the early 1970’s, increased ap­ for their debt issues, and others have met their preciably. Confidence in the banking system has needs for long-term funds through private therefore been strengthened, and bank stock placements with life insurance companies and prices have been rising along with stock prices other institutional lenders. generally. Besides this, the improvement in the stock Many banks are still working out special market has made it considerably easier for many arrangements with real estate investment trusts firms to raise funds for new investment pro­ and other customers who have encountered dif­ grams or for restoration of equity cushions. ficulties in repaying loans. This process will Nearly $2 billion of new shares were sold to continue for some time. But our commercial the public during March. And if the average banking system is basically sound, its financial pace of new stock offerings in the first 4 months condition has improved, and our banks are well of this year is sustained, 1976 will see the prepared to meet increased credit demands as largest volume of corporate stock flotations in the recovery proceeds. our history. Other depositary institutions are likewise well The market for State and local government situated to meet credit demands in the months securities has also improved since last fall, when ahead. Savings and loan associations, in partic­ the New York City financial crisis made inves­ ular, have repaid large amounts of debt besides tors cautious and drove up borrowing costs to adding heavily to their holdings of liquid assets. many States and their political subdivisions. Furthermore, with savings inflows continuing to Since then, interest rates on municipal securities be very ample, the thrift institutions have of late have declined, and they are now well below become somewhat more aggressive in seeking their 1975 highs. New York City’s difficulties to expand their mortgage lending. Outstanding have had a restraining influence on the financial loan commitments have risen to the highest level policies of local and State governments in 3 years; mortgage interest rates have de­ throughout the country; but the volume of new clined, and other terms on mortgage loans— issues of municipal securities has remained rel­ such as downpayment requirements—are being atively large. liberalized. The condition of financial institutions has also It is fair to conclude, I believe, that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 431 prudent course of monetary policy that the Fed­ have now increased 3 months in a row; produc­ eral Reserve has pursued over this past year has tion of business equipment has risen briskly improved the state of confidence and fostered during the past 4 or 5 months; and the physical conditions in financial markets that contributed volume of total business investment in fixed to economic recovery. Moreover, a financial capital has increased significantly in each of the base has been laid for a substantial further rise past two quarters. With rates of capacity utili­ of general business activity. zation increasing, corporate profits moving up We may reasonably look forward now to strongly, business confidence gaining, and the continued expansion of production and employ­ stock and bond markets much improved, it is ment in the months ahead. Consumer spending, reasonable to expect considerable further which began to strengthen early in 1975, has strengthening this year in business expenditures been gathering momentum. Retail sales have for new equipment and new facilities—as nor­ risen at a faster pace since late last year, in­ mally happens in the course of a business-cycle creasing 2.8 per cent in March alone. Con­ expansion. sumers are now looking to the future with Our foreign trade balance, however, will greater confidence—they are spending a larger probably diminish this year. The volume of fraction of their current incomes; sales of new exports declined somewhat in the first quarter. autos, in fact, have regained the levels of late Imports, on the other hand, have continued to 1973. rise in response to the recovery of our economy, This upsurge of consumer spending has re­ and they now exceed exports once again. sulted in a substantial decline in the ratio of Economic recovery is well under way in a inventories to sales in many lines of activity. number of foreign countries, notably in Japan, Delivery times are lengthening in some sectors, Germany, and France. The outlook for the and businessmen are encountering more diffi­ over-all volume of international trade thus culty meeting customer needs from stocks on seems generally favorable. I am, however, con­ hand. As a consequence, many firms are seek­ cerned about the possible adverse effects on the ing to rebuild inventories to levels consistent world economy of recent developments in in­ with the faster pace of consumer buying. Taken ternational exchange markets. The strength of in the aggregate, stocks of goods have recently the dollar in exchange markets over recent begun to rise, and the need for further accumu­ months is, of course, a tribute to our economy. lation will act as a significant stimulus to recov­ But abrupt changes in the relative values of ery throughout most of this year. national currencies, such as we have been wit­ Residential construction also is moving nessing, add to the risks and the costs of inter­ ahead. Housing starts in February and March national trade. Worse still, they tend to add to were at an average annual rate of 1.5 million already existing pressures on governments to units—about 10 per cent above the level in the invoke measures to protect their domestic in­ fourth quarter of last year, and 50 per cent above dustries. Fortunately, despite the severe eco­ a year ago. To date, the rebound in residential nomic problems of recent years, new trade re­ construction has been concentrated in single­ strictions have been generally avoided. family homes. But with rental vacancy rates The countries whose currencies have of late declining, some pick-up in the construction of declined steeply in exchange markets are the multifamily dwellings may also be expected this very ones whose economies are still being dam­ year. aged by extremely high rates of inflation. In our Larger expenditures for business plant and own country, notable progress has been made equipment also are in prospect. There have been over the past 12 to 15 months in reducing the several signs recently of a quickening tempo of rate of inflation. The 7 per cent rise in consumer activity in the lagging capital goods sector. New prices last year was about half the increase capital appropriations of large manufacturing recorded in 1974. The rise in wholesale prices firms rose sharply during the final quarter of slowed even more. 1975; new orders for nondefense capital goods In recent months there has been some further Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin □ May 1976 abatement of inflation. The average level of vances in financial technology that enable the wholesale prices has remained practically un­ public to reduce the quantity of checking de­ changed since last October, and the advance in posits held for transactions purposes. Further consumer prices during the first quarter of this economies in money use are likely in the year year was the smallest in several years. ahead, and a reduction of the upper end of the This recent improvement in price perform­ growth range for therefore seems warranted. ance, however, stems entirely from declines in Some downward adjustment in the upper the prices of foods and fuels—prices which have boundary of the growth range for Mx might have tended to move erratically. Meanwhile, the been called for in any event, because a full year prices of other goods and services are continuing of renewed expansion in business activity is to rise at a troublesome pace, and wages are already behind us. I have advised the Congress still increasing much faster than the long-term repeatedly that, as every economist knows, the rate of growth of productivity. The underlying rate of monetary expansion would eventually trend of costs and prices thus is still clearly have to be lowered to be consistent with resto­ upward, and inflation must remain a major con­ ration of general price stability. The adjustment sideration in formulating public policy. in the projected growth range for Mx over the We at the Federal Reserve recognize our year ahead is a very small but prudent step in responsibility for sticking to a course of mone­ that direction. Further downward adjustments tary policy that will promote further economic will be needed as the economy returns to fuller expansion, so that our Nation may regain satis­ utilization of its labor and capital resources. factory levels of production and employment. Some of the same considerations apply also We also recognize that monetary policy needs to M2. True, changes in financial technology to be consistent with an eventual return to sta­ have had less effect on M2 than on Mu since bility of the general price level. Our projected savings accounts at commercial banks—which ranges for the monetary aggregates in the year are included in M2—have increasingly come to ahead have been established with both of these be used in lieu of checking deposits for transac­ objectives in mind. tions purposes. But, as I noted earlier, growth The ranges adopted by the Federal Open of M2 during the past year also fell well below Market Committee for the year ending in the the upper end of the range projected earlier. first quarter of 1977 differ only a little ^from Hence some lowering of the upper boundary of those announced previously. For Mu the pro­ the range appeared to be justified also in the jected growth range is 4Vi to 7 per cent; for case of M2. M2, the range has been set at IVi to 10 per Growth of M3 over the past year has been cent; and for M3, a range of 9 to 12 per cent at the upper end of the range announced origi­ has been established. nally, thus reflecting heavy inflows of con­ The growth ranges for Mx and M2 have been sumer-type time and savings deposits at savings narrowed by lowering the upper end of each and loan associations and at mutual savings range by one-half percentage point. The change banks. We cannot be at all certain that these is small, but it is a logical step in light of savings inflows will persist at such a rapid pace. developments in financial markets and in the We would, however, welcome a continued nonfinancial economy. ample flow of funds to institutions that are major Our decision to reduce the upper limit of the suppliers of funds for homebuilding. Our pro­ range reflects the experience of the past year, jected growth range for M3 has therefore re­ when a very moderate rise in the money stock mained unchanged. proved sufficient to finance a good economic The growth ranges of the aggregates adopted recovery with declining interest rates. One rea­ by the Federal Reserve for the year ahead rep­ son is that the pace of inflation moderated more resent our present judgment as to the rate of than might have been expected on the basis of monetary expansion that is consistent not only underlying trends of wages and costs. Of larger with continued economic expansion at a satis­ moment, however, have been the recent ad­ factory pace but also with further gradual un­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 433 winding of inflationary tendencies. There are, made by the Congress to improve its procedures however, profound uncertainties surrounding for control of the Federal budgetary process. the relationships among the various monetary Evidence of greater financial discipline on the aggregates, and between rates of monetary ex­ part of the Congress is helping to restore the pansion and the performance of the economy. confidence of the American people in their own House Concurrent Resolution 133 recognizes economic future and in the economic future of that the Federal Reserve may need to modify the Nation. its anticipated growth ranges as circumstances Our country is still faced with many serious change. Let me assure this committee that we economic problems. The menace of inflation is shall report fully to the Congress our actions still with us. Unemployment is much too high. and the reasons for them. Productivity has been lagging. The expansion The Federal Reserve has been pleased by the of our industrial plant is proceeding at too slow thoughtful way in which this committee has a pace. The homebuilding industry and other dealt with the problems of monetary policy in branches of construction are still depressed. And its reports on these monetary oversight hearings. independence in the energy area is still a distant We believe that the dialogue between the Fed­ goal. eral Reserve System and the Congress stimu­ Over the past year or so, however, we as a lated by the Concurrent Resolution has been Nation have begun to face up squarely to our constructive. major economic problems and to deal with them This dialogue is just one indication that the more constructively. There is now more reason Congress is attending seriously and effectively for hoping that our country will proceed reso­ to its responsibilities in the field of economic lutely to establish the basis for a lasting pros­ policy. Another is the concerted effort being perity. □ Statement by Stephen S. Gardner, Vice Chair­ taxes to out-of-State depositories. This request man, Board of Governors of the Federal Re­ had been prompted by certain Federal Reserve serve System, before the Subcommittee on Fi­ recommendations on these matters submitted to nancial Institutions of the Committee on Bank­ the Congress in 1971, when the Board com­ ing, Housing, and Urban Affairs, U.S. Senate, pleted a study that had been requested earlier May 11, 1976. by the Congress on the possible economic and financial effects of a major shift in congressional I am pleased to appear before this subcommit­ policy regarding taxation of national banks. tee, on behalf of the Board of Governors of the In 1969 the Congress acted to remove all Federal Reserve System, to present the Board’s previous restrictions on State and local taxation views regarding the application of State and of national banks and to substitute a simple local “doing business” taxes to out-of-State requirement that these banks be accorded the financial depositories. In so doing, I will com­ same tax treatment as State-chartered banks. ment on the recommendations to the Congress This revision was incorporated in a “permanent of the Advisory Commission on Intergovern­ amendment” scheduled to become effective in mental Relations (ACIR), which Committee early 1972. Print No. 1 seeks to implement. One of the major effects of this legislation As the subcommittee is aware, the ACIR was to remove the historical requirement that recommendations grew out of a study, con­ had confined authority to tax national banks ducted in response to Public Law 93-100, in (except for real property taxes) to the State in which the Congress invited the Commission to which the bank’s principal office was located. submit specific and detailed proposals relating Because of the umbrella effect of this require­ to the application of State “doing business” ment, States generally had confined their taxa­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 Federal Reserve Bulletin □ May 1976 tion of State-chartered banks, and other deposi­ ments, businesses, and consumers—wherever tories as well, to home State institutions. they may be. These institutions typically operate In its 1971 report to the Congress, one of on fairly narrow margins, and their choices as the Board’s principal recommendations was that to sources as well as to uses of funds often are legislation be enacted before the “permanent influenced by relatively small interest rate and amendment” became effective to “(L)imit the cost differentials. Under our present system, circumstances in which national banks, State vast amounts of funds have moved across State banks, and other depository institutions may be lines and within and among regions. The vigor­ subject to State and local government taxes on ous growth of these institutions over the years or measured by net income, gross receipts, or has contributed greatly to the efficiency of our capital stock, or to other ‘doing business’ taxes economy and to the economic benefit of both in a State other than the State of the principal depositors and borrowers. office, and prescribe rules for such taxation.” The Board continues to urge that the Con­ The Board’s recommendations also covered two gress, in providing new authority for State and related matters—the possibility of discrim­ local governments to levy income and other ination in State and local taxation of out-of-State “doing business” taxes on out-of-State national depositories and the tax treatment of interest on banks—and, in effect, on other depositories— Federal obligations in a direct tax on net in­ establish adequate safeguards to assure that in­ come. The areas covered by these recom­ terstate and interregional mobility of funds not mendations constitute the major focus of the be put in jeopardy. Experience over the decades comprehensive staff study incorporated in the with multistate taxation of manufacturing, pub­ ACIR report. lic utility, and mercantile enterprises suggests Although the “permanent amendment” did that, in the absence of effective safeguards, take effect on January 1, 1973, the Congress multistate taxation as applied to the quite dis­ has acted on two occasions since that time to similar interstate operations of depositories provide a moratorium on the exercise of the new could have damaging economic effects. Under authority for State and local application of these circumstances, multistate taxation would “doing business” taxes to Federally insured tend not only to impede credit mobility but also out-of-State depositories. The last of these ex­ to divert financing into channels that would be tensions, enacted this past February in Public both less efficient and potentially injurious to Law 94-222, extended the moratorium to Sep­ many community interests, particularly in agri­ tember 12, 1976. The purpose of these exten­ cultural and other credit-deficit areas. In certain sions has been to allow time for the ACIR to areas, the availability of many established in­ complete its study and for the Congress to take terstate financial activities—such as corre­ whatever legislative action seems desirable be­ spondent banking, loan pooling, and depositfore the authority is made available for States related services—would be reduced, loan rates to apply “doing business” taxes to out-of-State increased, and competition weakened. depositories. With such taxation, the tax itself would enter The Board believes, as it did when preparing as a consideration to be weighed in every credit, its earlier recommendations to the Congress, deposit, or service transaction with a customer that Federal legislative policy regarding the tax­ in a nondomiciliary taxing State. Moreover, the ation of interstate business of banks and other wide differences that exist in tax structures and depositary institutions must be carefully formu­ allocation rules—State to State and locality to lated to minimize the emergence of tax and locality—might give rise in many cases to a compliance barriers to the free mobility of credit compliance burden that, by itself, would render and monetary flows. This Nation’s depositary the performance of credit or other depositary institutions constitute a highly efficient and sen­ services unprofitable, particularly when the vol­ sitive mechanism for gathering available savings ume of transactions is small. Depositories would from all sectors of the economy and for chan­ need to acquire technical knowledge regarding neling them to creditworthy users—govern­ the tax laws and regulations of every taxing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 435 State in which they do business, to maintain that has its principal office or is chartered in separate records, and to file separate tax returns. another State. The intent of such legislation Under such circumstances, as is frequently would be to safeguard the authority of the States pointed out, the compliance cost could exceed to collect taxes in circumstances where an outthe amount of the tax. Additional deterrents to of-State institution has “established a clear re­ out-of-State activity would include the uncer­ lationship to the taxing State or political subdi­ tainty, the controversy, and the litigation in­ vision through a physical presence or a pattern volved in determining whether or not the de­ of sustained and substantial operations.” At the pository is subject to taxation in a particular same time, the Board believed “that the over­ State and what its tax liability is in that State; riding objectives should be to avoid creation of the possibility that more than 100 per cent of tax impediments to the continued free flow of the tax base might be subject to taxation; and credit across State lines and uneconomic the costs and inconvenience of efforts to develop changes in the procedures that now govern the new ways to meet the financing needs of out- overwhelming bulk of interstate lending by de­ of-State borrowers while avoiding the incidence pository institutions. ’ ’ of the new taxes. Like the present Federal statute that applies To minimize these barriers to the interstate to income tax on interstate sales of tangible mobility of funds while at the same time recog­ personal property (Public Law 86-272), the nizing the desire of the Congress to minimize statute relating to depositary institutions might constraints on State taxing powers, the Board’s provide that certain activities do not constitute 1971 report recommended that the legislation a sufficient connection with the State to establish to govern the application of State and local jurisdiction to tax (for example, mere solici­ “doing business” taxes to out-of-State deposi­ tation of prospective borrowers by a depositary tories should address itself to three major areas. institution or its representatives, the loans being Such legislation would need to (1) specify the approved or rejected outside the State; the circumstances and conditions under which a holding of security interests in property located State may assert jurisdiction to tax an out-of- in a State; or enforcement of obligations in the State depository, (2) establish rules and proce­ courts of a State). dures to govern the division of an institution’s The related ACIR recommendation, while tax base among the various States having juris­ stated in negative form, calls for legislation that diction to tax, and (3) establish rules to guide would deny authority to a State or local govern­ the States in their administrative procedures. ment to impose an income or other “doing Any rules and standards in these areas that are business” tax on an out-of-State depository developed for State taxation should be applica­ unless that depository has a “substantial physi­ ble to local government levies as well. As cal presence within the State” in the form of indicated earlier, the Board’s report also in­ a regular office location, the regular presence cluded recommendations relating to discrim­ of depository employees or agents, or the own­ inatory taxation and tax treatment of interest on ership or use of tangible property within the Federal obligations. With respect to each of State, including property involved in leasethese five areas, I should now like to outline financing operations. The ACIR also recom­ the Board’s conclusions, as stated in its 1971 mends that activities within a State relating to report, and then summarize and appraise the enforcement or protection of a security interest related ACIR recommendations against that in case of default should not, by themselves, background. provide a basis for imposing a tax. With respect to permissible circumstances for While the proposed ACIR standard appears taxation of out-of-State depositories, the Board broadly consistent with the Board’s recom­ stated that the Federal statute should establish mendations, we do not believe that the standard clearly defined uniform criteria for determining is sufficiently specific to make a definitive judg­ when a State or its subdivisions may exercise ment. For example, the “regular presence of jurisdiction to tax a bank or other depository depository employees or agents” could be in­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Federal Reserve Bulletin □ May 1976 terpreted to include periodic visits by a loan applied on a “fairly apportioned or attributed officer from an out-of-State bank or partici­ part of the entire . . . tax base,” and that there pations by an out-of-State bank in local credits be no congressional action requiring States to through a local correspondent bank. Such an adopt a standardized definition of taxable in­ interpretation clearly would not satisfy the come for purposes of taxing out-of-State depos­ Board’s concern that existing procedures gov­ itories. To limit aggregate tax payments and erning the overwhelming bulk of interstate provide assurance that all of the tax base is lending not be jeopardized through inadequate attributed to an area having jurisdiction to tax, restraint on State and local taxation of deposi­ the ACIR recommends that legislation permit tories. To safeguard such procedures, the legis­ the domiciliary State to apply its tax to the entire lation might incorporate an adaptation for depo­ tax base of home State depositories but then sitories of the jurisdictional standard in Public require the domiciliary State to allow the tax­ Law 86-272, as suggested by the Board in payer a credit against such tax liability for 1971. similar taxes paid to other States. However, The lack of specificity of the ACIR standard such credit need not exceed the lesser of the incurs the additional risk of creating substantial actual tax paid to nondomiciliary jurisdictions uncertainty among all depositories doing busi­ or the amount that would be fairly apportioned ness across State lines regarding their potential to such jurisdictions under the laws and rules tax liability in the various States. The resulting of the domiciliary State. compliance burden and risk of confusion and These recommendations clearly do not pro­ litigation alone could be substantial impedi­ vide the standard principles and procedures to ments to interstate flows of credit and other govern interstate division of the tax base that depositary services. Customers in nondomicil - the Board recommendation had contemplated. iary States would be placed at a disadvantage Substantial diversity of practice still exists not only through the reduction in competitive among the States with respect to apportionment alternatives but also in some cases due to the of taxes on interstate sales of tangible personal resulting higher interest rates on borrowed funds property, notwithstanding extensive efforts by and higher costs of other depositary services. the States to promote uniformity and reduce Smaller firms, which do not have access to the compliance burdens. There is considerable risk money and capital markets, would be affected that efforts to adapt these varying nonfinancial the most. business allocation procedures to the noncom­ Regarding interstate division of the tax base, parable interstate operations of depositories, or the Board recommended enactment of legisla­ to develop new apportionment measures for tion that would prescribe standard principles and such institutions, would be a source of uncer­ procedures to govern apportionment for each tainty and prolonged litigation unless the statu­ applicable tax base. States would not be limited tory guidelines are very specific. These difficul­ to their choice of a tax base, but clearly needed ties, together with compliance problems asso­ would be a formula for apportioning the base, ciated with the complex and widely varying definitions of the various factors used in the State and local apportionment laws, rules, and formula, and rules governing the application of procedures that likely would develop in the those factors. In the Board’s view, the legisla­ absence of such guidelines, could cause many tion should safeguard against the use of inap­ depositories to withdraw from out-of-State mar­ propriate allocation factors, provide assurance kets and seriously impede credit mobility. that the sum of the taxable base on which two Moreover, providing complete discretion for or more States levy a tax not exceed 100 per States to develop and apply their own appor­ cent of the actual base, and avoid the difficulties tionment formulas would open the door for of complying with widely varying procedures adoption of factors that might allocate to an and requirements among the various States. individual State a share of the tax base deter­ The ACIR recommends enactment of legisla­ mined mainly by the volume of loans outstand­ tion providing simply that the applicable tax be ing to, or the volume of deposits received from, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 431 customers in that State. Such a tax structure able income for taxation of out-of-State deposi­ could lead to a marked reduction in the flow tories, in effect is recommending also that the of credit to particular States and seriously affect States be free to apply their own administrative, the local economy, particularly in States where accounting, and reporting procedures in appor­ local supplies of credit are inadequate to meet tioning and collecting the tax. Moreover, the existing needs. ACIR proposes that Federal legislation con­ The ACIR indicates that its proposed re­ cerning the application of “doing business” quirement for tax credits, together with its pro­ taxes to out-of-State depositories omit reference posed “fair share” apportionment requirement, to procedures and mechanisms for adjudication would meet the potential problems of overlap­ of disagreements between States and taxpayers. ping taxation or taxation of more than 100 per This would leave the resolution of such prob­ cent of the tax base of an individual depository. lems to customary administrative agencies and But we do not see how such protection could procedures established by the States and to be assured under the ACIR apportionment applicable judicial proceedings in State and standard, where the States would be free to Federal courts. adopt varying definitions of the tax base and The Board remains concerned about the bar­ apportionment formulas that would allocate that riers to credit flows that could be associated with base through what undoubtedly would prove to the need to comply with widely varying and be widely varying combinations of factors and complex administrative procedures in the averaging procedures. It might be noted also various States. Because the application of that under this crediting arrangement, the taxes “doing business” taxes to out-of-State banks actually paid by a depository on its income and other depositories opens a new area in apportioned to nondomiciliary States would not interstate taxation for which established or cus­ in all cases be governed by the tax rates appli­ tomary procedures do not now exist, wide dif­ cable in those States as would be the case under ferences in treatment are likely. There would a strict apportionment-of-base arrangement. If appear to be significant advantages, to the tax the tax rate in the nondomiciliary State is lower collector as well as to the taxpayer, if such than in the home State, the credit allowed the taxation were introduced on the basis of uniform depository would be limited to the actual tax administrative procedures to be provided for by paid in the foreign State. Yet all its income, Federal statute. We believe that the Congress including the amount apportioned to the foreign should designate a Federal administrative State, would be subject to taxation in the home agency, such as the Treasury Department, to State at its higher rate. develop appropriate regulations and to issue In its 1971 recommendations, the Board also interpretations. expressed concern about the burden on out-of- I can be very brief regarding the remaining State taxpayers associated with the need to two issues on which the Board and the ACIR comply with widely varying administrative pro­ recommendations overlap—those dealing with cedures among the States. Accordingly, the discriminatory taxation and taxation of interest Board recommended enactment of legislation to on Federal obligations—since the recom­ establish rules that would guide the States in mendations contained in both reports are essen­ their administrative procedures, such as the ap­ tially identical. Because of uncertainties regard­ plication of a unitary business concept, require­ ing the possibility that States might discriminate ments regarding use of consolidated or com­ against out-of-State depositories in favor of bined tax returns from related or affiliated cor­ those within the State, the Commission recom­ porations, and audits of out-of-State corpora­ mends enactment of legislation specifying that tions. The Board also suggested the designation out-of-State depositories shall not be subject to of a Federal administrative agency to provide heavier taxes than would be imposed if they regulations and interpretations. were domestic corporations chartered or domi­ The ACIR, in recommending against Federal ciled in the taxing State. The Commission also prescription of a standardized definition of tax­ recommends that the Federal public debt statute Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 Federal Reserve Bulletin □ May 1976 be amended to authorize States to include, in activities of these depositories are exposed, in the measure of otherwise valid direct net income many cases for the first time, to nondomiciliary taxes, the interest income realized by financial State and local taxation. Accordingly, the depositories from Federal Government obliga­ Board’s 1971 study concluded that the granting tions. States now may tax such interest only of authority to tax must be accompanied by through a franchise or excise tax “according to certain safeguards, a conclusion to which we or measured by” net income, not by a direct still subscribe. income tax, although the two types of taxes are It is the Board’s view, based on this study identical in all other essential characteristics. and on the later ACIR study, and my own view, The recommended legislation would enable influenced in part by my banking experience, some States to simplify their tax structures and that the bill in Committee Print No. 1 now would provide additional flexibility for States before you does not provide adequate safe­ in adapting their choice of tax to their individual guards. We, therefore, recommend that the needs. The Board recommends enactment of Congress develop a legislative approach that both proposals. will establish appropriate and uniform juris­ In concluding my statement, I should like to dictional, apportionment, and administrative remind the subcommittee that the issues before guidelines and procedures and thus avoid the you in these legislative recommendations are of risks of damage to our economy that might substantial economic importance to the Nation. otherwise arise. To meet the needs of governments, businesses, The Board appreciates that this is a difficult and individuals for an efficient monetary and and complex undertaking and that viable an­ credit system, and to promote effective utiliza­ swers might not be found quickly. If the neces­ tion of the Nation’s resources, a very large and sary legislative and administrative action cannot complex system of interstate and interregional be completed before the present moratorium flows of funds through depositary institutions expires on September 12, the Board reluctantly has developed. It is essential that these flows concludes that the moratorium should be further not be placed in jeopardy as the out-of-State extended. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

439 Record of Policy Actions of the Federal Open Market Committee M E E T IN G H E L D O N M A R C H 15-16, 19761 1. D om estic P olicy D irective The information reviewed at this meeting suggested that output of goods and services—which had increased at a revised annual rate of 4.9 per cent in the fourth quarter of 1975—continued to expand at a moderate rate in the first quarter of 1976 and that the rise in prices slowed somewhat. Staff projections suggested that growth in output would remain moderate in the second quarter and in the second half of the year as well. In February retail sales had risen considerably—according to the advance report—and while the January level had been revised downward, the December level had been revised upward. Industrial production continued to recover in February at about the average pace of the preceding 4 months. Gains in nonfarm payroll employ­ ment were again widespread. In manufacturing, the increase in employment was relatively small in February, following a large rise in January, and the average workweek declined to its December level. With the labor force about unchanged in February, the unemployment rate fell 0.2 percentage point further to 7.6 per cent. The index of average hourly earnings for private nonfarm pro­ duction workers rose at a somewhat less rapid pace over the period from October 1975 to February 1976 than it had over the earlier months of 1975. The wholesale price index for all commodities fell again in February, as average prices of farm products and foods declined appreciably for the fourth consecutive month. Average wholesale prices of industrial commodities increased somewhat less than in January, owing in part to the reduction in crude oil prices required by the Energy Policy and Conservation Act. In January the rise in the consumer price index had slowed somewhat, reflect­ ing decreases in prices of foods, gasoline, and some other fuels; however, prices of services rose substantially. Staff projections for the second quarter of 1976 were similar 1This meeting was held over a 2-day period, beginning on the afternoon of March 15. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 Federal Reserve Bulletin □ May 1976 to those of 4 weeks earlier. They suggested that personal consump­ tion expenditures would expand at about the same rate as in recent quarters; that residential construction and business fixed investment would continue to recover; and that business inventories, which were estimated to have shifted from liquidation in the fourth quarter of 1975 to accumulation in the first quarter of this year, would be accumulated at a somewhat higher rate in the second quarter. It was anticipated that exports of goods and services would expand at a slightly slower pace than imports. In recent weeks the average value of the dollar against leading foreign currencies had increased to its highest level in 2 years. In the exchange markets, the British pound had depreciated sharply and the Italian lira had weakened further. Considerable central bank intervention had been needed to preserve rate relationships among other European currencies; on March 15 efforts to maintain fixed margins between the French franc and certain other European currencies were abandoned, and the franc depreciated. In January U.S. merchandise imports rose while exports declined, and the foreign trade balance shifted into deficit. Total loans and investments at U.S. commercial banks continued to expand in February, reflecting another large increase in bank holdings of Treasury securities. Business credit demands remained weak: outstanding bank loans to businesses declined, and the decline exceeded the rise in the outstanding volume of commercial paper issued by nonfinancial corporations. Mx—which had increased only a little in January—expanded moderately in February, while M2 and M3 rose sharply. At com­ mercial banks and nonbank thrift institutions, inflows of time and savings deposits other than large-denomination CD’s were again sizable. Inflows into savings accounts at commercial banks ex­ panded substantially further, as short-term market interest rates remained below Regulation Q ceiling rates on such accounts. System open market operations in the inter-meeting period had been guided by the Committee’s decision that open market opera­ tions should be directed toward maintaining the bank reserve and money market conditions prevailing at the time of the February meeting—characterized by a Federal funds rate of about 4% per cent—provided that monetary aggregates appeared to be growing at about the rates then expected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 441 Data that became available near the end of February suggested that both Mx and M2 were growing faster than had been expected, and open market operations permitted a slight firming in bank reserve and money market conditions. However, data that became available toward the end of the first week in March suggested that the monetary aggregates were growing at rates closer to those that had been originally expected, and money market conditions eased. The Federal funds rate, which had averaged almost 5 per cent in the week ending March 3, was again close to 43A per cent at the time of this meeting. Short-term market interest rates in general rose somewhat in early March, in part reflecting a shift in market attitudes in response to the firming of the money market and to favorable reports on various aspects of the economy. Later, however, rates declined again, and over the whole inter-meeting period they changed little on balance. On March 15 the market rate on 3-month Treasury bills was about 4.95 per cent, compared with about 4.90 per cent 4 weeks earlier. Long-term market interest rates also changed little on balance over the inter-meeting period. The volume of publicly offered corporate bonds remained large in February. Offerings of corporate stock expanded considerably, following the substantial rise that had occurred in stock prices. At its January meeting the Committee had agreed that growth in the monetary aggregates on the average over the period from the fourth quarter of 1975 to the fourth quarter of 1976 at rates within the following ranges appeared to be consistent with its broad economic aims: M1? 4Vi to IV2 per cent; M2, IV2 to 10V2 per cent; and M3, 9 to 12 per cent. 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, would be subject to review and modification at subsequent meetings. It also was understood that, as a result of short-run factors, growth rates from month to month might well fall outside the ranges contemplated for annual periods. In the discussion of current policy at this meeting, the Committee took note of a staff analysis suggesting that in the period immedi­ ately ahead transactions demands for money—at current levels of short-term interest rates—might be expected to increase in associa­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin □ May 1976 tion with expansion in nominal GNP; in view of recent experience, however, the analysis also suggested that the increase might be less than would be expected on the basis of historical relationships. It was expected that growth in time and savings deposits other than large-denomination CD’s, while still substantial, would slow from the rapid pace of recent months. Moreover, it was anticipated that business loan demand would remain weak in the March-April period and that, as a result, banks would continue to reduce the outstanding volume of large-denomination CD’s. During the discussion it was noted that the recovery in economic activity had remained orderly, that liquidity had improved, and that the outlook for activity was satisfactory—although inflation remained a problem. Against that background, Committee members indicated that they favored essentially no change in policy. At the conclusion of the discussion the Committee decided to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Specifically, the members concluded that growth in Mx and M2 over the March-April period at annual rates within ranges of 4 to 8 per cent and 7 to 11 per cent, respectively, would be acceptable. Mainly because of the projected decline in the out­ standing volume of large-denomination CD’s over the 2-month period, it was expected that these growth rates for the monetary aggregates would be associated with an annual rate of change in reserves available to support private nonbank deposits between —2 and +2 per cent. The members agreed that until the next meeting the weeklyaverage Federal funds rate might be expected to vary in an orderly way within a range of 4% to 5XA per cent. They also agreed that, in the conduct of operations, account should be taken of develop­ ments in domestic financial markets and of the sensitive state of foreign exchange markets. 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 has continued to expand at a moderate rate in the current quarter. In February retail sales rose considerably and recovery in industrial production continued. Gains in nonfarm employment were again widespread and the unemployment rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 443 dropped from 7.8 to 7.6 per cent. Wholesale prices of all commodi­ ties declined again in February, as average prices of farm products and foods fell appreciably further. Average wholesale prices of industrial commodities increased somewhat less than in January, owing in part to a reduction in crude oil prices required by the Energy Policy and Conservation Act. Over recent months, the advance in the index of average wage rates has moderated some­ what. The average value of the dollar against leading foreign currencies has increased in recent weeks to its highest level in 2 years. In the exchange markets, the British pound has depreciated sharply; the lira has weakened further; and most recently, the French franc has depreciated after abandonment of efforts to maintain fixed margins with certain other European currencies. In January the U.S. foreign trade balance shifted into deficit. M1? which had increased only a little in January, expanded moderately in February; JVf2 and M3 rose sharply. At commercial banks and nonbank thrift institutions, inflows of time and savings deposits other than large-denomination CD’s remained large. Since mid-February, both short- and long-term interest rates have changed little on balance. 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 financial markets and the sensitive state of foreign exchange markets, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Holland, Jack­ son, Kimbrel, Partee, Wallich, and Winn. Votes against this action: None. 2. A uthorization for D om estic O pen M arket O perations On March 10, 1975, the Committee had voted to amend a provision of paragraph 2 of the authorization for domestic open market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin □ May 1976 operations to raise from $1 billion to $2 billion the limit on System holdings of special short-term certificates of indebtedness purchased directly from the Treasury; and at its meeting on March 18, 1975, the Committee had voted to maintain the limit at $2 billion for a period of 1 year, unless in the interim the Committee decided otherwise. At today’s meeting, the Committee voted to remove the 1-year time limitation it had attached to the increase in the limit, thereby maintaining it at $2 billion. This action was taken in light of the potential cash-management problems that the Treas­ ury might experience in financing the large budget deficit in the period ahead. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Holland, Jack­ son, Kimbrel, Partee, Wallich, and Winn. Votes against this action: None. 3. R eview of C ontinuing A uthorizations This being the first meeting of the Federal Open Market Committee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1976, and their assumption of duties, the Committee followed its customary prac­ tice of reviewing all of its continuing authorizations and directives. The Committee reaffirmed the authorization for domestic open market operations, the authorization for foreign currency opera­ tions, and the foreign currency directive in the forms in which they were presently outstanding. Votes for these actions: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Holland, Jack­ son, Kimbrel, Partee, Wallich, and Winn. Votes against these actions: None. The Committee also took special note of paragraph 3 of the domestic authorization, which authorizes the Reserve Banks to engage in lending of U.S. Government securities held in the System Open Market Account under such instructions as the Committee might specify from time to time. That paragraph had been added to the authorization on October 7, 1969, on the basis of a judgment by the Committee that in the existing circumstances such lending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 445 of securities was reasonably necessary to the effective conduct of open market operations and to the effectuation of open market policies, and on the understanding that the authorization would be reviewed periodically. At this meeting the Committee concurred in the judgment of the Manager that the lending activity in question remained reasonably necessary and that, accordingly, the authori­ zation should remain in effect subject to periodic review. 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

446 Law Department S tatu tes, reg u latio n s, in terp retatio n s, and d ecisio n s Bank Holding Companies all other equity securities of the company pur­ chased or redeemed by it over the preceding 12- The Board of Governors has amended its Regu­ month period, by class; lation Y to require prior notification to the Board (3) the consideration to be paid for the shares by bank holding companies planning to purchase to be purchased or redeemed, and the consid­ or redeem their own stock. eration paid for all other shares of the company’s Effective May 15, 1976, Part 225 is amended equity securities purchased or redeemed by it over by adding a new section 225.6 to read as follows: the preceding 12-month period, by class; (4) the date upon which, or that period of time Section 225.6—Corporate Practices during which, the purchase or redemption will (a) Purchase or redemption by a bank hold­ occur; ing company of its own shares. No bank holding (5) if known, the names of persons from whom company shall purchase or redeem any shares of shares are to be purchased or redeemed in such any class of its outstanding equity securities with­ transaction, and, if known, the names of persons out giving at least 45 days’ prior notice thereof from whom shares were purchased or redeemed to its Federal Reserve Bank if (i) the gross consid­ in the preceding 12 months; eration to be paid for such purchase or redemption (6) if debt is to be incurred or has been incurred is equal to 10 per cent or more of the company’s by the company or a subsidiary in connection with consolidated net worth as of the date of notifica­ the purchase or redemption or any other such tion, or (ii) the gross consideration to be paid for purchase or redemption over the preceding 12 such purchase or redemption when aggregated months, a description of the terms of the debt, with the net consideration paid by the company including the identity of the obligee, and the for all purchases or redemptions of its equity interest rate, maturity and repayment schedule of securities during the 12 months preceding the date the debt; of notification13 equals or exceeds 10 per cent of (7) if the transaction is related in any way to the company’s consolidated net worth as of the a transfer of control of the company, a description date of such notice. The 45-day period shall begin of the terms of the transfer, including the identity to run from the date such notice is received by of the transferee and a copy of any agreements the Reserve Bank, which shall promptly acknowl­ relating to such transfer; and edge receipt thereof in writing. (8) a current and pro forma consolidated balance Each notice filed hereunder shall furnish the sheet of the holding company. following information: The Reserve Bank may permit a purchase or (1) the title of the security to be purchased or redemption to be accomplished prior to the expi­ redeemed, and the purposes of the proposed trans­ ration of the 45-day period if it determines that action; the repurchase or redemption would not constitute (2) the number of shares of that security to be an unsafe or unsound practice and would not purchased or redeemed; the total number of shares violate any applicable law, rule, regulation or of equity securities outstanding as of the date of order, or any condition imposed by, or written the notice, by class; and the number of shares of agreement with, the Board. Rules Regarding 13For the purposes of this regulation “net consideration” is the gross consideration paid by the company for all of its Delegation of Authority equity securities purchased or redeemed during the period minus the gross consideration received for all of its equity The Board of Governors has amended its Rules securities sold during the period other than as part of a new issue. Regarding Delegation of Authority to delegate to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 447 any Board member the authority to act on a request two days following the denial. No person claiming made in the course of a formal hearing for special to be adversely affected by such denial shall have permission to appeal to the Board from a ruling any right to petition the Board or any Board of an Administrative Law Judge, and to delegate member for review or reconsideration of such to the Secretary of the Board authority to extend action. time periods for submissions in connection with various types of application proceedings. Effective April 2, 1976, Part 265 is amended 2. Part 265 is amended by adding a new subas set forth below. paragraph (15) to section 265.2(a), as follows: 1. Part 265 is amended by adding a new para­ graph (c) to section 265.1a as follows: Section 265.2—Specific Functions Delegated to Board Section 265.1a—Specific Employees and to Federal Reserve Banks Functions Delegated to Board Members (a) The Secretary of the Board (or, in his absence, the Acting Secretary) is authorized: (c) Any Board member is authorized, when requested by the Secretary of the Board, to act upon any request to the Board filed with the (15) To grant or deny requests for the exten­ Secretary pursuant to section 263.10(e) of the sion of any time period provided in any notice, Board’s Rules of Practice for Formal Hearings (12 order, rule or regulation of the Board relating to CFR 263) for special permission to appeal from the filing of information, comments, opposition, a ruling of the presiding officer at any hearing briefs, exceptions or other matters, in connection conducted pursuant to such rules on any motion with any application, request or petition for the ruled upon by such presiding officer (provided, that approval, authority, determination, or permission if such special permission is granted the merits of, or any other action by the Board sought by of the appeal shall thereupon be presented to the any person. Notwithstanding the provisions of Board for decision). Notwithstanding the provi­ section 265.3 hereof, no person claiming to be sions of section 265.3 hereof, the denial of such adversely affected by any action of the Secretary special permission pursuant to this paragraph shall on any such request shall have the right to petition be subject to review by the Board only upon the the Board or any Board member for review or request of a member of the Board made within reconsideration of such action. Bank H olding Company and Bank M erger Orders Issued by the Board of Governors Orders Under Section 3 shares of The Exchange Bank, Skiatook, Okla­ of Bank Holding Company Act homa (“Bank”). Notice of the application, affording opportunity Exchange Bancshares, Inc., for interested persons to submit comments and Skiatook, Oklahoma views has been given in accordance with § 3(b) of the Act. The time for filing comments and views Order Approving has expired and the application and all comments Formation of a Bank Holding Company received have been considered in light of the Exchange Bancshares, Inc., Skiatook, Okla­ factors set forth in § 3(c) of the Act (12 U.S.C. homa (“Applicant”), has applied for the Board’s 1842(c)). approval, under § 3(a)(1) of the Bank Holding Applicant is a nonoperating corporation organ­ Company Act (“Act”) (12 U.S.C. 1842(a)(1)), ized for the purpose of becoming a bank holding of formation of a bank holding company through company through the acquisition of Bank. Upon the acquisition of 80 per cent or more of the voting acquisition of Bank, Applicant would control the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Federal Reserve Bulletin □ May 1976 218th largest bank in Oklahoma, holding 0.11 per or (b) later than three months after the effective cent of the total deposits in commercial banks in date of this Order, unless such period is extended the State. Bank holds deposits of approximately for good cause by the Board of Governors or by $10 million1 and ranks as the 27th largest banking the Federal Reserve Bank of Kansas City, pursuant organization in the Tulsa banking market.2 to delegated authority. Several principals of Applicant are also directors By order of the Secretary of the Board, acting and/or officers of five other banks in Oklahoma. pursuant to delegated authority from the Board of One of these banks is the fifth largest bank in the Governors, effective April 21, 1976. Tulsa banking market. The other four banks are (Signed) J. P. Garbarini, situated in different banking markets from Bank. [seal] Assistant Secretary of the Board. In view of the size of Bank and since the subject proposal represents a restructuring of Bank’s ex­ South Dakota Bancshares, Inc., isting ownership and Applicant has no subsidi­ Pierre, South Dakota aries, it appears that consummation of the transac­ tion would not have any significant adverse effects Order Approving on existing or potential competition, nor would Formation of Bank Holding Company it increase the concentration of banking resources or have any adverse effects on other banks in the South Dakota Bancshares, Inc., Pierre, South area. Thus, competitive considerations are con­ Dakota (“Applicant”), has applied for the Board’s sistent with approval of the application. approval under § 3(a)(1) of the Bank Holding The future prospects of Applicant are dependent Company Act (12 U.S.C. § 1842(a)(1)) of forma­ upon the profitable operations of Bank. In this tion of a bank holding company through acquisi­ regard, Applicant proposes to service the $610,000 tion of 96 per cent or more of the voting shares debt it will incur as part of this proposal over a of The Pierre National Bank, Pierre, South Dakota 12-year period with no payments of principal re­ (“Bank”). quired during the first two years. In view of Bank’s Notice of the application, affording opportunity past earnings and anticipated growth, it appears for interested persons to submit comments and that Applicant would have the necessary financial views, has been given in accordance with § 3(b) flexibility to meet its annual debt servicing re­ of the Act. The time for filing comments and views quirement and, at the same time, maintain an has expired, and none has been timely received. adequate capital position for Bank. The managerial The Board has considered the application in light resources and financial condition of Bank are con­ of the factors set forth in § 3(c) of the Act (12 sidered satisfactory and its future prospects appear U.S.C. § 1842(c)). favorable. Accordingly, considerations relating to Applicant, a nonoperating corporation with no banking factors are consistent with approval of the subsidiaries, was formed for the purpose of be­ application. coming a bank holding company through the ac­ Although consummation of the proposal would quisition of shares of Bank. Upon acquisition of effect no changes in the services offered by Bank, those shares Applicant would control the 14th considerations relating to the convenience and largest banking organization in South Dakota with needs of the community to be served are consistent total deposits of approximately $30.5 million, with approval. It has been determined that con­ representing 1.1 per cent of total deposits held by summation of the transaction would be in the commercial banks in the State of South Dakota.1 public interest and that the application should be Bank is the largest of six banks in the relevant approved. market2 and holds 38 per cent of the deposits held On the basis of the record, the application is by commercial banks in that market. The purpose approved for the reasons summarized above. The of the proposed transaction is to transfer the own­ transaction shall not be made (a) before the thir­ ership of shares of Bank from individuals to a tieth day following the effective date of this Order corporation owned by the same individuals. 1A11 banking data are as of June 30, 1975. *A11 banking data are as of June 30, 1975. 2The Tulsa banking market, the relevant geographic market 2The relevant market is approximated by Hughes County, for purposes of analyzing the competitive effects of the subject the southern half of Stanley County, and the southern threeproposal, is approximated by Tulsa County, Oklahoma. fourths of Sully County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 449 Principals of Applicant are also substantial share­ interest of Bank’s minority shareholders appears to holders in the XYZ Corporation, Wall, South be amply protected. They may retain their shares Dakota, a registered one-bank holding company of Bank and, in such case, their influence over which owns 81 per cent of First Western Bank, the affairs of Bank would remain essentially un­ Wall, South Dakota. This bank is approximately changed. The second option mentioned above, sale 136 road miles from Bank and is located in a of the minority’s Bank stock to Applicant for different banking market. First Western Bank is approximately 70 per cent of its book value, does separated from Bank by a large, sparsely populated not appear inherently unreasonable, in view of the region which includes several intervening banks. limited market, if any, for shares of Bank. Ex­ Consummation of the proposal would have no changing their Bank stock for Applicant’s Class adverse effect on existing or potential competition A nonvoting stock, the third choice available to or the concentration of banking resources in any the minority, does not appear unfair in view of relevant area and the Board concludes that com­ rights attaching to ownership of the Class A stock. petitive considerations are consistent with approval The holders of these shares will be entitled to of the application. cumulative preferred annual dividends of $1.00 The financial and managerial resources and fu­ per share. Dividends may be declared on Appli­ ture prospects of Applicant are dependent upon cant’s voting shares only after dividends on the those of Bank, which are considered satisfactory. nonvoting stock have been paid for the current and Applicant proposes to service the debt it will incur previous years. Once the cumulative dividends as a result of the proposed transaction through paid to the holders of the voting stock equal on dividends of Bank over a 12-year period. Based a per share basis those paid on the nonvoting stock on Bank’s past earnings, it appears that Applicant since incorporation, each class will share equally will be able to meet its annual debt-servicing in any further distribution. Approximately 82 per requirements and maintain Bank’s strong capital cent of Bank’s minority shares have been tendered, position. Thus, considerations relating to banking subject to Board approval of the proposed transac­ factors are consistent with approval of the appli­ tion. For the above-mentioned reasons, it appears cation. that the rights of Bank’s minority shareholders will It does not appear that the convenience and be preserved by the proposed transaction. Even needs of the community to be served are not being were this not the case, however, it is not clear met currently. Although there will be no immedi­ that the denial of a bank holding company appli­ ate change in the services offered by Bank upon cation may be predicated solely on unfair treatment consummation of the proposal, considerations re­ of minority stockholders.3 lating to the convenience and needs of the com­ Applicant and its principals are aware of the munity to be served are consistent with approval Board’s concern over stock redemption by bank of the application. holding companies where such redemption ad­ As noted above, the purpose of the proposed versely affects the capital of a bank holding com­ transaction is to transfer the ownership of the pany. Applicant’s principals have relieved Appli­ shares of Bank from individuals to a corporation cant of a former contingent obligation to redeem owned by the same individuals. It is contemplated voting stock under a buy-sell agreement among that a family group currently owning 51 per cent the principals and Applicant. In the circumstances of Bank’s outstanding shares would receive all of of this case, it does not appear probable that the voting shares of Applicant in exchange for their Applicant would, in the foreseeable future, redeem shares of Bank. The minority shareholders of Bank voting shares with consequent adverse financial may elect to retain their shares of Bank, sell their effects. In any event, the Board carefully monitors shares to Applicant at approximately 70 per cent the redemption of bank holding company stock and of book value, or exchange their stock for Appli­ has proposed adoption of regulations that would cant’s Class A non voting stock. Consequently, provide increased supervision of such redemp­ should all of Bank’s minority stockholders accept tions.4 the exchange offer, the majority group will have obtained control of all of Bank’s voting stock. It is the Board’s judgment that no facet of this 3See Western Bancshares, Inc., v. Board of Governors of transaction is a cause for concern in the adminis­ the Federal Reserve System, 480 F.2d 749 (10th Cir. 1973). tration of the Bank Holding Company Act. The 440 Fed. Reg. 58866 (1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 Federal Reserve Bulletin □ May 1976 The Board is aware that the proposed transaction book value, or exchanging their shares for Appli­ will allow the majority to strengthen its control cant’s Class A non voting stock. None of these over Bank. The Board regards this as a factor alternatives will allow the minority to retain the lending weight toward approval of the application, influence over the affairs of Bank that they could however, as it will assure the continued able have exercised previously. They will now face one management of Bank that the majority group has entity, Applicant, which will vote at least 51 per provided in the past. Thus, the Board finds that cent of Bank’s stock as a block. Previously, the no aspect of the proposed transaction reflects un­ minority might have persuaded some members of favorably on the financial and managerial re­ the majority group to vote with the minority; sources and future prospects of Applicant and consummation of the proposed transaction will Bank, the convenience and needs of the commu­ eliminate this possibility. nity to be served, the existing or potential com­ Further, approval of this application will enable petitive situation in any relevant area or any other the majority shareholders of Bank to reduce their factor related to the consideration of bank holding total investment with no concomitant diminution company applications. It is the Board’s judgment of control. The majority group’s ownership of all that consummation of the proposed transaction of Applicant’s voting stock will permit them to would be in the public interest and that the appli­ redeem a portion of this stock without fear of cation should be approved. losing control of Applicant or Bank. After such On the basis of the record, the application is a redemption, the majority group would continue approved for the reasons set forth above. The to hold all of Applicant’s outstanding voting stock transaction shall not be made (a) before the thir­ and Applicant’s interest in Bank would be un­ tieth calendar day following the effective date of changed. Thus, approval of this application will this Order or (b) later than three months after the create a situation in which a relatively small in­ effective date of this Order, unless such period vestment in a bank holding company could be used is extended for good cause by the Board or by to control a disproportionately large amount of the Federal Reserve Bank of Minneapolis pursuant bank resources. I am concerned with the precedent to delegated authority. setting character of the majority’s position. By order of the Board of Governors, effective For these reasons, I do not regard the proposal April 2, 1976. as being in the public interest, and I would deny the application. Voting for this action: Chairman Burns and Gover­ nors Gardner and Wallich. Voting against this action: Governor Coldwell. Absent and not voting: Governors Holland, Jackson, and Partee. Starbuck Bancshares, Inc., (Signed) G riffith L. Garwood, Starbuck, Minnesota [seal] Assistant Secretary of the Board. Order Denying Formation of Bank Holding Company Dissenting Statement of Governor Coldwell Starbuck Bancshares, Inc., Starbuck, Minne­ I would deny the application of South Dakota sota, has applied for the Board’s approval under Bancshares (“Applicant”) to become a bank § 3(a)(1) of the Bank Holding Company Act (12 holding company through acquisition of The Pierre U.S.C. § 1842(a)(1)) of formation of a bank National Bank (“Bank”). In my view, the pro­ holding company through acquisition of 80 per posed acquisition represents an attempt by Bank’s cent or more of the voting shares of The First majority stockholders to strengthen their control National Bank of Starbuck, Starbuck, Minnesota over Bank in a manner detrimental to the interests (“Bank”). of Bank’s minority stockholders. This will be Notice of the application, affording opportunity accomplished by an exchange of the majority’s 51 for interested persons to submit comments and per cent interest in Bank for 100 per cent of views, has been given in accordance with § 3(b) Applicant’s Class B voting stock. The minority of the Act. The time for filing comments and views shareholders of Bank have been given the option has expired, and the Board has considered the of retaining their Bank stock, selling their shares application and all comments received, including to Applicant for approximately 70 per cent of their those submitted by the Comptroller of the Cur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 451 rency, in light of the factors set forth in § 3(c) will be realized.3 Bank has experienced substantial of the Act (12 U.S.C. § 1842(c)). deposit growth since 1970, without commensurate Applicant is a nonoperating corporation organ­ capital growth,4 due to lagging earnings. Applicant ized under the laws of Minnesota for the purpose projects a decline in deposit growth during the debt of becoming a bank holding company through the servicing period. As in the case of its projections acquisition of Bank. Upon acquisition of Bank, of increased earnings for Bank, Applicant’s pro­ Applicant would hold .07 per cent of the total jection of a slowing of Bank’s deposit growth deposits in commercial banks in that State. Bank, appears unrealistic in the light of actual experi­ with deposits of approximately $10.2 million,1 is ence.5 the fifth largest of twelve commercial banks in the In concluding that Applicant’s debt servicing relevant banking market2 and holds 9.5 per cent requirement would constitute an undue strain on of total deposits in commercial banks in the mar­ Bank’s capital, the Board has not disregarded ket. Inasmuch as this proposal represents essen­ certain commitments made by Applicant’s tially a reorganization of existing ownership inter­ principal. In connection with this application, the ests, the acquisition of Bank by Applicant would principal of Applicant has committed to contribute not have any significantly adverse effect upon the commission income earned during the debt either existing or potential competition within the amortization period by his individually-owned in­ relevant market. surance agency directly to Bank. While these The Board has indicated on previous occasions contributions would provide some assistance, it is that it believes that a holding company should the Board’s view that they would not significantly constitute a source of financial and managerial lighten the proposed debt burden of Applicant. strength to its subsidiary bank(s), and that the Applicant’s principal has also indicated that, if Board will closely examine the condition of an Bank’s capital ratios decline to unacceptable applicant in each case with this consideration in levels, either he or Applicant would inject capital mind. While the Board considers the managerial into Bank. The Board notes, however, that Appli­ resources of Applicant and Bank to be generally cant’s principal would borrow the funds to make satisfactory, the Board notes that Applicant would such capital injections. Such borrowing would incur a sizable debt in connection with the pro­ increase the demands on Bank’s earnings, thus posed acquisition. Applicant proposes to service counteracting to a significant extent the benefits this debt over a 12-year period through dividends of any capital contributions by Applicant’s to be declared by Bank and the tax benefit to be principal. In the Board’s view, besides straining derived from filing consolidated tax returns. It Bank’s capital adequacy, the debt servicing obli­ appears that dividends by Bank necessary to enable gation to be incurred by Applicant would signifi­ Applicant to service this debt would impede growth of Bank’s capital through its retention of its earnings. The reliability of Applicant’s projec­ tions of Bank’s deposit and earnings growth, 3 Applicant has projected that Bank’s earnings as a percent­ which bear on Bank’s future capital needs, is of age of deposits will be .65 per cent while over the last five years that ratio has averaged .53 per cent. Bank experienced considerable importance. However, the financial a significant increase in income in 1975. However, this increase projections submitted by Applicant are not sup­ appears attributable to Bank’s change from cash basis account­ ported by Bank’s growth record. Bank’s earnings ing to accrual basis accounting. 4Bank’s capital-to-assets ratio is below the average ratio for have, since 1970, been markedly lower as a per­ similar-sized banks in the area, and it appears that this will centage of deposits than those projected for Bank continue to be the case in future years. by Applicant for the period of debt retirement and, 5 Applicant has projected that Bank’s deposits will grow at a rate of from 7 to 9 per cent annually over the amortization in view of the absence of any management changes period. The Board notes, however, that Bank’s deposits have proposed by Applicant, it does not appear that the grown at an average rate of 14 per cent annually in recent years. Moreover, Bank’s total deposits at year-end 1975 (which increased earnings of Bank projected by Applicant figures became available only after the application was submit­ ted) were only slightly below what Applicant projected in its application for year-end 1976. It should be noted that projections for later years are in­ herently less reliable than those for early years and, accord­ ‘All banking data are as of June 30, 1975. ingly, the Board must stress the more meaningful early years 2 The relevant banking market is approximated by most of in its analysis of the financial prospects of an applicant. In Swift and Pope Counties, as well as the extreme northern this application less than 5 per cent of the acquisition debt portion of Chippewa County. is projected to be paid in the first four years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin □ May 1976 cantly limit Applicant’s ability to meet unforeseen Voting for this action: Chairman Burns and Gover­ financial problems that might arise. Accordingly, nors Gardner, Holland, Wallich, Coldwell, Jackson, and Partee. the Board views the debt to be incurred by Appli­ cant in connection with this application as a sig­ (Signed) G riffith L. Garwood, nificantly adverse factor in the consideration of the [seal] Assistant Secretary of the Board. subject proposal and finds that the considerations relating to financial resources and future prospects Boatmen’s Bancshares, Inc., weigh against approval of the application. St. Louis, Missouri As indicated above, the proposed formation essentially involves the reorganization of the own­ Order Approving Acquisition of Bank ership interests of Bank. No significant changes Boatmen’s Bancshares, Inc., St. Louis, Mis­ in Bank’s operations or in the services offered to souri (“Applicant”), a bank holding company customers of Bank are anticipated. The Board within the meaning of the Bank Holding Company notes that Bank has maintained a low level of risk Act (“Act”), has applied for the Board’s approval assets by maintaining a relatively low loan to under section 3(a)(3) of the Act (12 U.S.C. deposit ratio as compared to banks located in 1842(a)(3)) to acquire 80 per cent or more of the neighboring communities. That ratio has declined voting shares of Raytown Bank, Raytown, Mis­ since 1971 and is now approximately 30 per cent. souri (“Bank”). There is no indication that Applicant intends to Notice of the application, affording opportunity increase significantly Bank’s lending in future for interested persons to submit comments and years. Indeed, in light of the effect of the proposed views, has been given in accordance with section debt servicing requirement on Bank’s capital, it 3(b) of the Act. The time for filing comments and does not appear that Bank could, consistent with views has expired, and the application and all the maintenance of sound capital ratios, expand comments received have been considered in light its lending to meet the credit needs of its commu­ of the factors set forth in section 3(c) of the Act nity. Consequently, considerations relating to the (12 U.S.C. 1842(c)). convenience and needs of the community to be Applicant, the sixth largest banking organi­ served lend no weight toward approval of the zation in Missouri, controls thirteen subsidiary application. banks with aggregate deposits of approximately On the basis of the circumstances concerning $734.7 million, representing 4.6 per cent of total this application, the Board concludes that the commercial bank deposits in the State.1 Appli­ banking considerations involved in this proposal cant’s acquisition of Bank would increase Appli­ present adverse factors bearing upon the financial cant’s share of commercial bank deposits statewide condition and future prospects of both Applicant by .2 of one per cent and cause it to become the and Bank. Such adverse factors are not outweighed fifth largest banking organization in the State. by any procompetitive effects, managerial re­ Bank (approximately $36.5 million in deposits), sources, or by benefits that would result in serving is the eleventh largest banking organization in the the convenience and needs of the community. Kansas City banking market2 and controls about Accordingly, it is the Board’s judgment that ap­ .8 of one per cent of total commercial bank de­ proval of the application would not be in the public posits in the market. Applicant, the eighth largest interest and that the application should be denied.6 banking organization in the Kansas City banking On the basis of the facts of record, the applica­ market, has two bank subsidiaries in the market tion is denied for the reasons summarized above. (Baltimore Bank and Trust Co. and North Hills By order of the Board of Governors, effective Bank, both of Kansas City, Missouri), which hold April 26, 1976. aggregate deposits of approximately $101.3 mil­ lion, representing 2.2 per cent of the market’s total 6 While the Board recognizes that denial of the application will not necessarily affect immediately the control of Bank, 1A11 banking data are as of June 30, 1975. the Board cannot sanction the use of a holding company 2The Kansas City banking market, which is the relevant structure that, because of limited financial resources, could banking market for this proposal, includes all of Clay, Jackson impair the financial condition of the bank to be acquired; nor and Platte Counties in Missouri and Johnson and Wyandotte would the public interest be served by such Board action. Counties in Kansas, plus parts of Cass County in Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 453 commercial bank deposits. Consummation of the By order of the Secretary of the Board, acting proposed transaction would increase Applicant’s pursuant to delegated authority for the Board of share of the market’s commercial bank deposits Governors, effective April 19, 1976. to 3 per cent, but would not change its rank in (Signed) J. P. Garbarini, the market. Although Applicant’s subsidiaries in [seal] Assistant Secretary of the Board. the market derive some deposits from Bank’s service area, in view of the distances (12 and 17 miles) between Bank and Applicant’s subsidiary The Royal Trust Company, banks, the number of intervening banks and the Montreal, Quebec, Canada number of banking organizations competing in the market, it appears that consummation of the pro­ Order Approving Acquisition of Bank posed transaction would not result in the elimina­ tion of significant existing competition between The Royal Trust Company, Montreal, Quebec, Bank and Applicant’s other subsidiary banks in Canada, a bank holding company within the the market. meaning of the Bank Holding Company Act, has It does not appear likely that significant compe­ applied for the Board’s approval under § 3(a)(3) tition would develop between Bank and any of of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 Applicant’s banking subsidiaries in the foreseeable per cent or more of the voting shares of Dale future due to the distances between Bank and Mabry State Bank, Tampa, Florida (“Bank”). Applicant’s subsidiaries, the large number of in­ Notice of the application, affording opportunity tervening banks in the market, and Missouri’s for interested persons to submit comments and branching laws. Furthermore, since the ratio of views, has been given in accordance with § 3(b) population to banking offices in the Missouri por­ of the Act. The time for filing comments and views tion of the Kansas City banking market exceeds has expired, and the Board has considered the the Statewide average, the market would continue application and all comments received in light of to be attractive to de novo entry. The Board the factors set forth in § 3(c) of the Act (12 U.S.C. concludes, therefore, that competitive consid­ 1842(c)). erations are consistent with approval of the appli­ Applicant, with total assets of $3.2 billion,1 is cation. the largest trust company and the eighth largest The financial and managerial resources and fu­ financial institution in Canada and also operates, ture prospects of Applicant, its subsidiaries, and through subsidiaries and other interests, in Europe Bank are regarded as satisfactory and consistent and the Caribbean Islands. With respect to its with approval of the application. Convenience and operations in the United States, Applicant controls needs factors are also consistent with approval. one bank,2 the Royal Trust Bank of Miami, N .A ., Applicant will provide Bank with data processing Miami, Florida (“Miami Bank”), which has total and other related services. In addition, Applicant deposits of $68.3 million, representing approxi­ will assist Bank in expanding its physical facilities. mately 0.3 per cent of the total deposits in com­ Accordingly, considerations relating to the con­ mercial banks in Florida. Acquisition of Bank venience and needs of the community are favor­ (approximately $5.2 million in deposits) would able and outweigh any slight adverse effects that increase Applicant’s share of deposits in Florida might result from consummation of this acquisi­ only slightly and would have an insignificant effect tion. It has been determined that the proposal on the Statewide concentration of banking re­ would be in the public interest and should be sources. approved. On the basis of the record, the application is 1 All banking data are as of June 30, 1975, and reflect holding approved for the reasons summarized above. The company formations and acquisitions approved through Febru­ transaction shall not be consummated (a) before ary 1, 1976. the thirtieth calendar day following the date of this 2 Applicant has only one nonbank subsidiary active in Florida, Information Systems Design of Florida, Inc., which Order, or (b) later than three months after the date provides data processing and other related services to financial of this Order, unless such period is extended for institutions located in Florida and operates as a computer good cause by the Board, or by the Federal Re­ service bureau for the storing and processing of banking, financial, and other related economic data. This nonbank sub­ serve Bank of St. Louis, pursuant to delegated sidiary is located in Miami and has no impact on the Tampa authority. banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin □ May 1976 Bank is the 23rd largest of 26 banking organi­ By order of the Board of Governors, effective zations competing in the Tampa banking market,3 April 23, 1976. and controls 0.31 per cent of the total deposits Voting for this action: Chairman Burns and Gover­ in commercial banks in that market and 0.02 per nors Gardner, Holland, Wallich, Coldwell, Jackson, cent of the total deposits in commercial banks in and Partee. the State. Applicant’s other banking subsidiary, (Signed) G riffith L. G arwood, Miami Bank, is located in Miami, Florida, ap­ [seal] Assistant Secretary of the Board. proximately 270 miles southeast of Tampa. No competition presently exists between Bank and Orders Under Section 4 Miami Bank and, in view of the distances in­ volved, it does not appear likely that significant of Bank Holding Company Act competition between Bank and Miami Bank would Town Financial Corporation, develop in the future. In view of Bank’s relative Hartford City, Indiana size and its market position, the Board views the proposed acquisition as a foothold entry by Appli­ Order Approving cant into the relevant banking market. Such a Acquisition of Bank Computer Services, Inc. foothold entry by Applicant should have a salutary effect on competition by enabling Bank to compete Town Financial Corporation, Hartford City, In­ more effectively in the market. Therefore, on the diana, a bank holding company within the meaning basis of the record, the Board concludes that of the Bank Holding Company Act, has applied consummation of the proposal would not have for the Board’s approval, under Section 4(c)(8) of significant adverse effects upon existing or poten­ the Act and § 225.4(b)(2) of the Board’s Regula­ tial competition in any relevant area and that tion Y, to acquire all of the voting shares of Bank competitive considerations are consistent with ap­ Computer Services, Inc., Hartford City, Indiana proval of the application. (“BCSI”), a company that provides data process­ The financial and managerial resources and fu­ ing services for Applicant, its subsidiaries, and ture prospects of Bank, Applicant and Miami Bank other financial institutions, and stores and proc­ are considered satisfactory and consistent with esses financial, banking, and related economic approval of the subject application. Therefore, data. Such activities have been determined by the banking factors are consistent with approval. Ap­ Board to be closely related to banking (12 CFR plicant proposes to make available to Bank its § 225.4(a)(8)). expertise in the areas of trust, loan, and investment Notice of the application, affording opportunity services and international banking. Considerations for interested persons to submit comments and relating to the convenience and needs of the com­ views on the public interest factors, has been duly munity to be served are thus also consistent with published (41 Federal Register 5351). The time approval of the application. It is the Board’s judg­ for filing comments and views has expired, and ment that the proposed acquisition would be in the Board has considered all comments received the public interest and that the application should in the light of the public interest factors set forth be approved. in Section 4(c)(8) of the Act (12 U.S.C. § On the basis of the record, the application is 1843(c)(8)). approved for the reasons summarized above. The Applicant, a one-bank holding company, con­ transaction shall not be made (a) before the thir­ trols Citizens State Bank of New Castle, New tieth calendar day following the effective date of Castle, Indiana (“Bank”). Bank, with deposits of this Order nor (b) later than three months after $47.6 million,1 is the 77th largest commercial the effective date of this Order, unless such period bank in Indiana and accounts for 0.3 per cent of is extended for good cause by the Board, or by the deposits in all commercial banks in the State. the Federal Reserve Bank of Atlanta pursuant to Bank is the largest of seven banks located in Henry delegated authority. County and holds 40.5 per cent of the total depos­ its of commercial banks in that county. Applicant 3The Tampa banking market, the relevant market, includes all of Hillsborough County, plus the Land O’Lakes area of Pasco County. The City of Tampa is this market’s population and commercial center. ‘All banking data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 455 also has one wholly-owned subsidiary, Town Fi­ BCSI continuously since its formation, consum­ nance Company, Inc. (“Finance”),2 which is en­ mation of the proposed acquisition would neither gaged in making small consumer loans and fi­ eliminate nor have any significantly adverse effects nancing retail instalment sales contracts. Further­ on either existing or potential competition. Fur­ more, Applicant provides consulting and account­ thermore, since BCSI would, upon consummation ing services to its subsidiaries and acts as an of the proposal, be ensured greater access to Ap­ insurance agent and broker for customers of its plicant’s capital, BCSI may be expected to in­ subsidiaries in connection with the extension of crease and improve the services it offers the public. credit.3 The record contains no evidence suggesting that At present, BCSI is indirectly controlled by consummation of this proposal would result in any Applicant as BCSI is a subsidiary of Bank, which adverse effects such as undue concentration of owns approximately 68 per cent of the outstanding resources, decreased or unfair competition, con­ shares of BCSI. First National Bank of Hartford flicts of interests, unsound banking practices or any City, Hartford City, Indiana, and The Bank of other adverse effects upon the public interest. Montpelier, Montpelier, Indiana, each owns ap­ Based upon the foregoing and other consid­ proximately 16 per cent of the remaining out­ erations reflected in the record, the Board has standing shares of BCSI. BCSI was organized on determined, in accordance with the provisions of June 8, 1970 when its shares were issued to these Section 4(c)(8) of the Act, that consummation of three banks. BCSI performs many of the routine this proposal can reasonably be expected to pro­ data processing services for Bank and the two duce benefits to the public that outweigh possible other owner banks; in addition, it performs payroll adverse effects. Accordingly, the application is processing services for some of the customers of hereby approved. This determination is subject to the three banks, data processing services for one the conditions set forth in section 225.4(c) of savings and loan association, and interest payable Regulation Y and to the Board’s authority to processing services for Finance. In 1974, BCSI require such modification or termination of the had gross receipts of $169,908 and a net loss of activities of a holding company or any of its $5,170. The instant proposal contemplates the subsidiaries as the Board finds necessary to assure acquisition by Applicant of all outstanding shares compliance with the provisions and purposes of of BCSI. In the Board’s judgment, BCSI has a the Act and the Board’s regulations and orders reasonably adequate financial condition, satis­ issued thereunder, or to prevent evasion thereof. factory management, and favorable future earnings The transaction shall be consummated not later prospects. Inasmuch as Applicant has controlled than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Chicago, pursuant to authority which is hereby 2 Finance was a subsidiary of Applicant when Applicant delegated. became a bank holding company on December 31, 1970 by virtue of the enactment of the 1970 Amendments to the Act. By order of the Board of Governors, effective Section 4(a)(2) of the Act authorizes Applicant to retain its April 14, 1976. ownership interest in Finance only through December 31, 1980, unless Applicant applies for and receives specific Board Voting for this action: Vice Chairman Gardner and approval to retain Finance. Governors Holland, Wallich, Coldwell, Jackson, and 3Applicant, which also provided these insurance services at Partee. Absent and not voting: Chairman Burns. the time it became a bank holding company, is similarly entitled to continue them only through December 31, 1980, (Signed) G riffith L. G arwood, unless Board approval to retain these activities is specifically applied for and granted. [seal] Assistant Secretary of the Board. O rders Approved Under Bank H olding C ompany Act— By the Board of Governors During April 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin □ May 1976 Section 3 Board action Federal (effective Register Applicant Bank(s) date) citation Kaskaskia Bancshares, State Bank of New 4/6/16 41 F.R. 15758 Inc., New Athens, Athens, New Athens, 4/14/76 Illinois Illinois Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation First National Boston Invenchek, Inc., 4/23/76 41 F.R. 18173 Corporation, Boston, Atlanta, Georgia 4/30/76 Massachusetts Offerle Investment Co., Liebl Insurance 4/14/76 41 F.R. 16881 Offerle, Kansas Agency, Offerle, 4/22/76 Kansas Sections 3 and 4 Board action Federal Nonbanking company (effective Register Applicant Bank(s) (or activity) date) citation Vermillion Vermillion Vermillion 4/5/76 41 F.R. 15760 Bankshares, State Bank, Valley In- 4/14/76 Inc., Vermillion, Vermillion, surance Agency, Kansas Kansas Vermillion, Kansas By Federal Reserve Banks During April 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 Banks(s) Bank date citation Peoples Credit The Lathrop Kansas City 4/26/76 41 F.R. 19264 Co., Kansas City, Bank, Lathrop, 5/11/76 Missouri Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 457 O rder Approved Under Bank M erger Act— Board action Federal (effective Register Applicant Bank(s) date) citation Central Trust Peter DePuy State 4/7/76 41 F.R. 15757 Company Rochester Bank, Nunda, New 4/14/76 N .Y ., Rochester, York New York Pending C ases Involving the Board of G overnors* National Urban League, et al. v. Office of the International Bank v. Board of Governors, filed Comptroller of the Currency, et al., filed December 1975, U.S.C.A. for the Sixth April 1976, U.S.D.C. for the District of Circuit. Columbia. Roberts Farms, Inc. v. Comptroller of the Cur­ Farmers & M erchants Bank of Las Cruces, rency et al., filed Novem ber 1975, New M exico v. Board of Governors, filed U.S.D.C. for the Southern District of Cal­ April 1976, U.S.C.A. for the District of ifornia. Columbia. National Computer Analysts, Inc. v. Decimus Blackstone Valley National Bank v. Board of Corporation, et al., filed November 1975, Governors, filed April 1976, U.S.C.A. for U.S.D.C. for the District of New Jersey. the First Circuit. Peter E. Blum v. First National Holding Cor­ United States ex rel. A.R. M artin-Trigona v. poration, filed November 1975, U.S.D.C. Arthur F. Burns et al., March 1976, for the Northern District of Georgia. U.S.D.C. for the District of Columbia. Harlan National Co. v. Board of Governors, Grandview Bank & Trust Company v. Board filed November 1975, U.S.C.A. for the of Governors, filed March 1976, U.S.C.A. Eighth Circuit, for the Eighth Circuit. tPeter E. Blum v. M organ Guaranty Trust Co., Federated Capital Corporation v. Board of et al., filed October 1975, U.S.D.C. for Governors, filed March 1976, U.S.C.A. the Northern District of Georgia, for the District of Columbia. tA .R . M artin-Trigona v. Board of Governors, Association of Bank Travel Bureaus, Inc. v. et al., filed September 1975, U.S.D.C. for Board of Governors, filed February 1976, the Northern District of Illinois, (motion U.S.C.A. for the Seventh Circuit. for reconsideration), M emphis Trust Company v. Board of Gover­ tLogan v. Secretary of State, et al., filed Sep­ nors, filed February 1976, U.S.D.C. for tember 1975, U.S.D.C. for the District of the Western District of Tennessee. Columbia. First Lincolnwood Corporation v. Board of Florida Association of Insurance Agents, Inc. Governors, filed February 1976, U.S.C.A. v. Board of Governors, and National A s­ for the Seventh Circuit. sociation of Insurance Agents, Inc. v. Helen C. Hatten, et al. v. Board of Governors, Board of Governors, filed August 1975, filed January 1976, U.S.D.C. for the Dis­ actions consolidated in U.S.C.A. for the trict of Connecticut. Fifth Circuit. Henry M . Smith v. National Bank of Boulder, et al., filed June 1975, U.S.D.C. for the Northern District of Texas. *This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors tDecisions have been handed down in these cases, subject is not named a party. to appeals noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 Federal Reserve Bulletin □ May 1976 Bank of Boulder v. Board of Governors, et al., Georgia Association of Insurance Agents, et al. filed June 1975, U.S.C.A. for the Tenth v. Board of Governors, filed October 1974, Circuit. U.S.C.A. for the Fifth Circuit. ttD avid R . M errill, al., v. Federal Open M ar­ Alabam a Association of Insurance Agents, et ket Committee of the Federal Reserve Sys­ al. v. Board of Governors, filed July 1974, tem, filed May 1975, U.S.D.C. for the U.S.C.A. for the Fifth Circuit, District of Columbia, appeal pending, tInvestment Company Institute v. Board of Gov­ U.S.C.A. for the District of Columbia. ernors, dismissed July 1975, U.S.D.C. for Curvin J. Trone v. United States, filed April the District of Columbia, appeal pending, 1975, U.S. Court of Claims. U.S.C.A. for the District of Columbia Richard S. Kaye v. Arthur F. Burns, £/ al., Circuit. filed April 1975, U.S.D.C. for the South­ East Lansing State Bank v. Board of Gover­ ern District of New York. nors, filed December 1973, U.S.C.A. for Louis J. Roussel v. Board of Governors, filed the Sixth Circuit, April 1975, U.S.D.C. for the Eastern Dis­ tConsumers Union of the United States, Inc., trict of Louisiana. et al. v. Board of Governors, filed Sep­ tember 1973, U.S.D.C. for the District of Columbia. Bankers Trust New York Corporation v. Board $The Board of Governors is not named as a party in this of Governors, filed May 1973, U.S.C.A. action. for the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

459 Announcements tion Q) and has extended the period for comment R EG U LA TIO N B: A m endm ents to June 14, 1976. The Board of Governors on May 13, 1976, an­ The Board has also proposed several modifi­ nounced adoption of several amendments to Reg­ cations to its Truth in Lending rules (Regulation ulation B (Equal Credit Opportunity). Z) for identifying transactions charged to con­ The amendments relate to the regulation imple­ sumers with open-end charge accounts (such as menting the original form of the Equal Credit charges on a credit-card billing statement). Com­ Opportunity Act, prohibiting discrimination in the ment will be received through June 18, 1976. granting of credit on grounds of sex or marital In addition, the Board has extended until July status. (Amendments to the regulation to imple­ 9, 1976, the period for comment on a proposed ment changes in the Act made by the Congress change in its Regulation Q with respect to pooled this year are in the process of development.) funds. One amendment adds a new subsection to Reg­ ulation B regarding credit extended under student loan programs. This permits lenders to ask student C H A N G ES IN B O A R D STA FF borrowers questions about marital status and about income of the applicant’s spouse, and to obtain The Board of Governors has announced the fol­ the signature of the applicant’s spouse to determine lowing promotions: if the applicant qualifies for assistance on the basis John E. Ryan from Assistant Director to Asso­ of need. Without this amendment lenders could ciate Director in the Division of Banking Supervi­ not make these inquiries nor obtain the spouse’s sion and Regulation, effective April 21, 1976. signature. The amendment applies to both State William W. W iles from Assistant Director to and Federal student loan programs. Associate Director in the Division of Banking Another amendment to the regulation requires Supervision and Regulation, effective April 21, creditors to retain a copy of the notice of action 1976. taken on an application for credit. This is in Peter E. Barna from Program Director for Bank addition to the existing requirement that lenders Holding Company Analysis in the Office of Staff retain copies of customers’ applications. Where Director for Management to Assistant Director in lenders notify customers by form letter of action the Division of Banking Supervision and Regula­ taken, a notation in the customer’s file that such tion, effective April 21, 1976. a letter was sent will satisfy the new requirement. Murray Altmann from Special Assistant to the A third amendment provides that in business Board to Assistant to the Board in the Office of transactions of $100,000 or more a creditor need Staff Director for Monetary Policy, effective May not explain the reasons for denial of credit, and 3, 1976. in business transactions of less than $100,000 In addition, the Board has announced the ap­ creditors must explain reasons for denial if re­ pointment of Ralph H. Gelder, Commissioner of quested in writing to do so. Business Regulation for the State of Maine, as Associate Director of the Division of Banking Supervision and Regulation, effective May 24, 1976. Mr. Gelder, who was on the staff of the PR O PO SED A M EN D M EN TS Federal Reserve Bank of New York from 1960 The Board has supplemented an earlier proposal to 1973, holds an M .A. in Economics from Miami that would authorize transfers of funds from sav­ University and has completed course work for a ings accounts to cover check overdrafts (Regula­ Ph.D from New York University. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 Federal Reserve Bulletin □ May 1976 N EW Q U A R TER LY R EPO R T ularly large share of assets or liabilities vis-a-vis the United Kingdom and other major European O N FO R EIG N B R A N C H ES financial centers, and also vis-a-vis such “offshore The Board of Governors has announced the first banking centers” as the Bahamas, Bermuda, the results of a new quarterly report showing the Cayman Islands, the Netherlands Antilles, Pan­ geographical distribution of the assets and liabili­ ama, Hong Kong, and Singapore. ties of major foreign branches of U.S. banks. Copies of the report (E .ll) are available upon About 290 branches, including all those above a request from Publications Services, Division of minimum size in terms of their U.S. dollar liabili­ Administrative Services, Board of Governors of ties, are submitting reports. The reports, which the Federal Reserve System, Washington, D.C. have thus far been received for September 30 and 20551. December 31, 1975, show the breakdown of total assets and total liabilities of the branch according to the country of address of the customer, on or SY STEM M EM B ER SH IP: near the last working day of the calendar quarter. A dm ission of State B anks Branch assets include loans to governments, corporations, and other nonbank borrowers, as The following banks were admitted to membership well as placements with other banks (including in the Federal Reserve System during the period other U.S. banks and their branches except April 16, 1976, through May 15, 1976: branches of the same parent bank). Liabilities are principally deposits from both banks and non­ M ichigan banks, but include the permanent investment of Wyoming ...............Old Kent Bank of Wyoming the head office in the branch. Funds placed with M innesota or received from other banks account for a partic­ Grygla ...............American State Bank of Grygla Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 Industrial Production Released for publication M ay 14 Nondurable goods materials rose somewhat fur­ ther. Industrial production increased by an estimated 0.7 per cent in April, reflecting widespread gains in Seasonally adjusted, ratio scale, 1967=100 output. Increases for the two previous months were - _140 _ MATERIALS _ TOTAL revised upward to 1.1 per cent in February and > / - 120 - //^ T \ >f - 0.7 per cent in March, indicating a much stronger - /p'PR TO O T D A U L C TS, V \J ? first-quarter advance. Major upward revisions oc­ 1 1 I 100 1.. I 1 1. I curred in durable consumer goods, equipment parts, and some other materials. The April index at 122.5 per cent of the 1967 average was IIV2 per cent above a year earlier but about 4 per cent below the 1973 high. Among consumer goods, auto assemblies rose sharply in April to an annual rate of 8.6 million units, and are scheduled to increase further in May. Production of other consumer durable goods continued to advance strongly, and production of consumer staples and clothing rose somewhat fur­ ther. Output of business equipment also increased following gains in February and March. Output of construction products continued to expand moderately. Production of durable materials advanced 1976 strongly, reflecting increases in output of metals, F.R. indexes, seasonally adjusted. Latest figures: April. equipment parts, and consumer durable parts. *Auto sales and stocks include imports. Seasonally adjusted, 1967 == 100 Per cent changes from— 1976 Industrial production Month Year Q4 to Jan. Feb. Mar.p Apr.e ago ago Ql Total ................................................................................. 119.5 120.8 121.7 122.5 .7 11.5 2.6 Products, total .......................................................................... 120.2 121.3 121.6 122.4 .7 8.3 2.5 Final products ...................................................................... 119.6 120.8 121.1 121.9 .7 8.3 2.1 Consumer goods ............................................................ 130.9 132.1 132.6 133.5 .7 11.5 2.5 Durable goods .......................................................... 120.9 123.6 125.6 126.5 .7 17.3 3.9 Nondurable goods .................................................. 134.6 135.2 135.2 136.0 .6 9.7 1.9 Business equipment .................................................... 118.4 120.5 121.0 122.0 .8 5.7 2.7 Intermediate products ...................................................... 122.4 123.4 123.5 124.1 .5 9.4 3.8 Construction products ................................................. 116.9 117.6 118.0 118.6 .5 7.7 3.9 Materials ..................................................................................... 118.3 120.2 121.9 122.7 .7 16.6 2.9 Preliminary. ^Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics C O N TEN TS 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 Al 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 □ MAY 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 Float3 F.R. Totals account stand­ Total out­ repur­ assets4 ing right2 chase agree­ ment Averages of daily figures 1969—Dec................................. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 ................................. 61,688 61,310 378 3211970—3D,5e7c0 1,032 66,708 11,105 400 7,145 1971—Dec.................................. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.................................. 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec.................................. 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—Dec.................................. 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—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 *•9,797 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 2,375 3,384 101,369 11,599 500 10,267 Mar................................. 94,880 93,503 1,377 58 2,204 3,412 101,336 11,599 500 10,436 Apr.................................. 93,243 92,187 1,056 44 2,247 4,144 100,328 11,599 500 10,501 Week ending— 1976—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 18......................... 94,396 92,718 1 ,678 56 2,155 3,535 100,962 11.599 500 10.257 25......................... 96,610 93,573 3,037 148 2,934 2,959 103,686 11,599 500 10,269 Mar. 3......................... 96,404 94,161 2,243 85 2,115 3,081 102,832 11,599 500 10,356 10......................... 92,768 92,113 655 48 2,577 3,232 99,358 11,599 500 10,430 17......................... 93,316 93,316 40 2,446 3,347 99,762 11,599 500 10,436 24......................... 96,724 94,409 2,315 78 2,041 3,501 103,091 11,599 500 10,442 31......................... 95,638 93,917 1,721 36 1,657 3,687 101,850 11,599 500 10,442 Apr. 7......................... 91,538 91,538 24 2,101 3,816 98,014 11.599 500 10,452 14......................... 90,257 89,946 311 61 2,061 4,079 97,002 11.599 500 10,507 21^....................... 94,821 92,737 2,084 39 2,556 4,340 102,579 11,599 500 10,514 28*....................... 95,155 93,967 1,188 53 2,278 4,301 102,414 11,599 500 10,522 End of month 1976—Feb.................................. 95,667 94,354 1,313 52 1,649 3,062 101,480 11,599 500 10,330 Mar................................. 96,647 93,900 2,747 54 2,110 3,707 103,401 11,599 500 10,403 Apr................................. 98,553 94,468 4,085 30 1,917 4,280 105,775 11,599 500 10,526 Wednesday 1976—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......................... 95,357 92,870 *i[487* 59 3,156 3,036 102,611 11,599 500 10,261 25......................... 99,554 93,549 6,005 688 3,152 3,021 107,611 11,599 500 10,272 Mar. 3...................... 96,716 94,287 2,429 317 3,120 3,153 104,433 11,599 500 10,427 10. ........ 87,567 87,567 36 3,283 3,264 94,773 11.599 500 10,433 17......................... 92,430 93,430 72 3,869 3,370 100,326 11.599 500 10,440 24......................... 95,920 94,671 i, 249 324 2,668 3,613 103,140 11,599 500 10,446 31......................... 96,647 93,900 2,747 54 2,110 3,707 103,401 11,599 500 10,403 Apr. 7......................... 87,563 87,563 41 2,539 3,713 94,381 11,599 500 10,452 14......................... 91,957 89,779 2,i78 322 2,755 4,321 100,028 11,599 500 10,511 21*....................... 98,151 92,916 5,235 174 2,797 4,677 106,649 11,599 500 10,519 28*....................... 98,180 93,842 4,338 246 2,639 4,351 106,225 11,599 500 10,526 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 U.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 Beginning July 1973, this item includes certain deposits of domestic transactions. nonmember banks and foreign-owned banking institutions held with 3 Beginning 1960 reflects a minor change in concept; see Feb. 1961 member banks and redeposited in full with F.R. Banks in connection Bulletin, p, 164. 4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 ac­ bilities cula­ ings counts4 and With Cur­ tion Treas­ For­ Other 3,6 capital4 F.R. rency Total 8 ury eign Banks and coin? Averages of daily figures 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. 78,377 309 3,532 307 718 3,137 28,264 6,870 35,134 . 1975—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. 81,907 362 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 34,989 .............Dec. 84,625 496 5,903 287 916 3,225 26,995 8,445 35,575 . 1976—Jan. 84,002 527 8,811 280 716 3.231 26,168 7,646 33,953 .............Feb. 85.014 511 7,653 264 810 3,252 26,366 7,456 33,967 .............Mar. 86,569 520 5,211 254 815 3,203 26,356 7,567 34,072 .............Apr.* Week ending— 83,406 537 9,805 268 730 3,312 26,815 8,116 35,069 . 1976—Feb. 4 83,951 529 6,966 247 688 3,038 25,590 8,050 33,779 ...................11 84,369 533 7,354 279 673 3,225 26,885 7,516 34,540 ..................... 18 84,061 521 10,783 278 692 3,347 26,372 7,145 33,656 .......................25 84,077 513 9,911 312 813 3,289 26,371 7,577 34,088 .Mar. 3 84,776 510 7,227 288 740 3,061 25,283 7,955 33,379 .........10 85,261 498 6,036 262 950 3,217 26,072 7,493 33,710 ............17 85,168 514 8,972 267 822 3,343 26,547 6,869 33,562 ..........24 85,124 522 7,705 246 724 3,433 26,635 7,453 34,236 ............31 85,713 523 4,268 277 914 3,030 25,840 7,600 33,587 .Apr. 7 86,794 529 2,421 261 698 3,148 25,756 7,856 33,762 ...........14 87,106 527 6,003 232 846 3,236 27,243 7,089 34,481 ..........21* 86,643 500 6,861 238 821 3,334 26,638 7,615 34,403 ............28* End of month 83,831 512 10,366 412 809 3,396 24,585 7,577 32,302 . 1976—Feb. 85,498 524 7,144 305 796 3,490 28,150 7,453 35,751 .............Mar. 86,582 500 9,806 305 762 3,456 26,989 7,938 35,078 .............Apr.* Wednesday 83,750 531 7,800 225 717 2,986 28,751 8,116 37,005 .1976—Feb. 4 84,463 517 6,705 257 594 3,096 26,097 8,050 34,286 ...................11 84,584 523 9,603 252 501 3,224 26,285 7,516 33,940 ........................18 84,135 523 10,836 261 975 3,435 29,816 7,145 37,100 .......................25 84,601 505 9,820 233 690 2,994 28,115 7,577 35,832 . Mar. 3 85,330 510 5,300 255 936 3,106 21,868 7,955 29,964 ..........10 85,454 507 9,531 234 982 3,220 22,936 7,493 30,574 ............17 85,307 524 8,838 271 755 3,330 26,660 6,869 33,675 ...........24 85,498 524 7,144 305 796 3,490 28,150 7,453 35,751 ...........31 86,527 522 1,456 246 767 2,978 24,435 7,600 32,185 . Apr. 7 87,297 525 2,257 242 788 3,161 28,368 7,856 36,374 ...........14 87,158 511 7,894 252 1,114 3,460 28,878 7,089 36,116 ........21* 86,819 500 9,023 287 741 3,447 28,033 7,615 35,798 ...........28* with voluntary participation by nonmember institutions in the F.R. Sys­ deficiencies on which F.R. Banks are allowed to waive penalties for tran­ tem’s program of credit restraint. sition period associated with bank adaptation to Regulation J as amended As of Dec. 12, 1974, the amount of voluntary nonmember bank and effective Nov. 9, 1972. For 1973, allowable deficiencies included are (be­ foreign-agency and branch deposits at F.R. Banks that are associated ginning with first statement week of quarter): Ql, $279 million; Q2, $172 with marginal reserves are no longer reported. However, two amounts are million; Q3, $112 million; Q4, $84 million. For 1974, Ql, $67 million, reported: (1) deposits voluntarily held as reserves by agencies and branches Q2, $58 million. Transition period ended after 1974, Q2. of foreign banks operating in the United States; and (2) Euro-dollar Beginning with week ending Nov. 19, 1975, adjusted to include waivers liabilities. of penalties for reserve deficiencies in accordance with Board policy, 7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed effective Nov. 19, 1975, of permitting transitional relief on a graduated thereafter. Beginning Jan. 1963, figures are estimated except weekly basis over a 24-month period when a nonmember bank merges into an averages. Beginning Sept. 12, 1968, amount is based on close-of-business existing member bank, or when a nonmember bank joins the Federal figures for reserve period 2 weeks previous to report date. Reserve System. 8 Beginning week ended Nov. 15, 1972, includes $450 million of reserve 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 □ MAY 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 held1 quired sonal ings ings ings ings 1965—Dec..................... ?.2,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—Dec..................... 7.5,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec..................... 7.7,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec..................... 7.8,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec..................... 7.9,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec..................... 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—Dec..................... 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—Dec..................... 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Dec..................... 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—Apr...................... 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 June.................... 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 Aug..................... 34,482 34,265 217 211 38 -18 14 5 1 98 51 132 145 Sept..................... 34,646 34,447 199 396 61 17 68 27 2 23 141 132 185 Oct...................... 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...................... 333,953 33,939 14 76 11 -147 20 -14 1 -2 16 177 39 Mar..................... 333,967 33,531 436 58 8 177 21 36 2 108 14 115 21 Apr.p................. 334,072 33,957 115 44 10 -63 -3 8 -241 15 126 21 Week ending— 1975—Apr. 2............. 35,087 34,808 279 51 7 -30 7 99 8 203 43 9............. 34,663 34,552 111 30 8 62 15 -51 7 85 23 16............ 35,295 35.076 219 22 6 25 -14 36 4 172 18 23............ 35,249 35,179 70 165 6 -3 42 16 25 -23 77 80 21 30............. 35,495 35,306 189 241 7 -11 67 1 37 56 71 143 66 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............. 35,611 35,197 414 253 13 57 140 20 129 57 208 56 1976—Jan. 7............. 35,551 35,227 324 67 10 59 -12 102 11 175 56 14............. 35,802 35,639 163 45 8 71 -2 -94 2 188 43 21............ 36,193 35.996 197 153 10 -62 28 -2 77 91 18 170 30 28............ 35,072 34,907 165 58 8 49 10 28 -23 15 111 33 Feb. 4............ 35,069 34,652 417 57 12 94 -14 139 16 198 41 11............ 33,779 33,729 50 51 12 -83 20 -31 14 144 37 18............ 34,540 34,040 500 56 10 180 -7 4 95 10 232 42 25............ 33,656 33,773 -117 148 10 -157 82 -5 -43 24 88 42 Mar. 3............ 34,088 33,678 410 85 8 98 31 11 11 122 14 179 29 10............ 33,379 33,276 103 48 8 53 26 -18 -67 3 135 19 17............ 33,710 33,509 201 40 8 26 21 13 22 141 18 24............. 33,562 33,451 111 78 8 -27 36 -13 70 23 81 19 31............. 34,236 33,838 398 36 10 105 10 109 14 174 22 Apr. 7............. 33,587 33,464 123 24 11 -13 -16 17 4 135 20 14............. 33,762 33,589 173 61 10 29 8 15 -15 32 151 14 21p . , 34,481 34,275 206 39 10 -55 -19 18 -324 2 75 19 28 p.......... 34,403 34,254 149 53 11 -42 36 -244 26 92 27 1 Beginning with week ending Nov. 15, 1972, includes $450 million of existing member bank, or when a nonmember bank joins the Federal reserve deficiencies on which F.R. Banks are allowed to waive penalties Reserve System. for a transition period in connection with bank adaptation to Regulation J 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies for reserve-requirement purposes has been based on size of bank (net included are (beginning with first statement week of quarter): Ql, $279 demand deposits of more than $400 million), as described in the Bulletin million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning for July 1972, p. 626. Categories shown here as “Large” and “All other” 1974, Ql, $67 million; Q2, $58 million. Transition period ended after parallel the previous “Reserve city” and “Country” categories, respectively second quarter, 1974. For weeks for which figures are preliminary, figures (hence the series are continuous over time). by class of bank do not add to the total because adjusted data by class are not available. Note.—Monthly and weekly data are averages of daily figures within Beginning with week ending Nov. 19, 1975, adjusted to include waivers the month or week, respectively. of penalties for reserve deficiencies in accordance with Board policy, Borrowings at F. R. Banks: Based on closing figures. effective Nov. 19, 1975, of permitting transitional relief on a graduated Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­ basis over a 24-month period when a nonmember bank merges into an ing by F.R. Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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—Mar. 3............ 122 14,491 -14,411 95.3 20,009 5,51 4,805 15,204 713 2,355 561 1,794 10............ 200 17,543 -17,369 117.1 23,428 5,885 4,987 18,440 898 3,576 557 3,019 17............ 52 15,565 -15,519 102.6 21,394 5,829 5,167 16,227 662 3,342 432 2,910 24............ 32 13,738 -13,744 92.3 18,805 5,068 4,125 14,680 943 2,438 495 1,943 31........... 200 13,232 -13,032 86.0 19,046 5,815 4,340 14,707 1,475 2,420 481 1,939 Apr. 7........... 80 16,432 -16,352 109.4 22,084 5,652 4,498 17,586 1,155 3,953 492 3,461 14........... 1 19,322 -19,346 127.7 24,269 4,947 4,235 20,033 711 4,156 542 3,613 21........... 43 16,895 -16,872 109.6 22,904 6,008 4,968 17,936 1,040 2,665 651 2,014 28........... -68 12,665 -12,747 84.4 19,508 6,843 4,715 14,793 2,128 2,248 660 1,588 8 in New York City 1976—Mar. 3........... 37 4,421 -4,415 72.6 5,042 621 621 4,421 1,548 139 1,409 10........... 111 6,595 -6,510 106.1 7,251 656 656 6,595 2,069 237 1 ,832 17........... 40 5,020 -4,980 79.8 5,678 658 658 5,020 2,282 236 2,047 24........... -4 3,641 -3,681 60.8 4.404 763 540 3,864 223 1,612 200 1 ,412 31........... 86 4,312 -4,226 68.9 4,885 572 572 4,312 1,457 241 1,216 Apr. 7........... 19 5,838 -5,819 96.5 6,277 439 439 5,838 2,007 201 1,806 14........... 21 6,706 -6,686 109.5 7.404 698 697 6,707 1,806 233 1,574 21........... 12 5,028 -5,016 80.1 6,105 1,078 1,078 5,028 1,678 288 1,390 28........... 11 3,544 -3,533 58.8 4,584 1,041 980 3,605 1,385 259 1,127 38 outside New York City 1976-Mar. 3............ 85 10,070 -9,996 110.5 14,967 4,897 4,184 10,783 713 807 422 385 10............ 89 10,948 -10,859 124.8 16,176 5,229 4,331 11,845 898 1,507 320 1,187 17............ 12 10,546 -10,539 118.5 15,717 5,171 4,509 11,208 662 1,059 196 864 24............ 36 10,097 -10,063 113.8 14,402 4,305 3,585 10,817 720 826 296 531 31........... 114 8,919 -8,806 97.6 14,162 5,243 3,767 10,395 1,475 963 240 722 Apr. 7........... 61 10,594 -10,533 118.1 15,807 5,213 4,059 11,748 1,155 1,945 291 1 ,654 14........... -3 12,615 -12,660 140.1 16,865 4,250 3,538 13,327 711 2,349 310 2,040 21........... 32 11,868 -11,856 129.7 16,798 4,930 3,890 12,908 1 ,040 987 363 625 28........... -79 9,121 -9,215 101 .4 14,923 5,802 3,735 11,188 2,067 862 402 461 5 in City of Chicago 1976—Mar. 3............ 18 4,932 -4,925 301.5 5,630 699 666 4,964 243 243 10............ -11 5,138 -5,150 322.5 5,713 575 551 356 356 17............ 15 5,224 -5,208 325.6 5,875 651 613 347 347 24............ -1 4,712 -4,713 302.4 5,387 675 636 301 301 31........... 4,623 -4,615 292.4 5,272 649 591 427 427 Apr. 7........... 5,231 -5,242 330.0 5,816 585 542 5,274 458 458 14........... 6,202 -6,215 380.2 6,695 493 460 6,235 533 533 21........... 6,184 -6,224 382.0 6,843 659 644 6,199 412 412 28........... 4,722 -4,710 304.5 5,503 781 781 4,722 397 397 33 others 1976—Mar. 3........... 67 5,138 -5,071 68.4 9,337 4,198 3,518 5,819 680 564 422 142 10........... 100 5,809 -5,709 80.4 10,463 4,654 3,781 6,682 873 1,151 320 831 17........... -3 5,322 -5,331 73.1 9,842 4,520 3,896 5,946 624 712 196 516 24........... 37 5,384 -5,350 73.5 9,015 3,630 2,949 6,066 681 525 296 229 31........... 106 4,296 -4,191 56.3 8,890 4,594 3,176 5,714 1,418 536 240 296 Apr. 7........... 72 5,362 -5,290 72.2 9,991 4,629 3,517 6,474 1,112 1,488 291 1,196 14........... -4 6,414 -6,446 87.1 10,170 3,756 3,078 7,092 679 1,817 310 1,507 21........... 53 5,684 -5,633 75.0 9,955 4,272 3,246 6,709 1,025 576 363 213 28........... -91 4,399 -4,505 59.7 9,421 5,022 2,955 6,466 2,067 466 402 64 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25, 1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. Beginning with week ending Jan. 7, 1976, adjusted to clearing banks, reverse repurchase agreements (sales of securities to include waivers of penalties for reserve deficiencies in accordance with dealers subject to repurchase), resale agreements, and borrowings secured Board policy change effective Nov. 19, 1975. by Govt, or other issues. 2 Derived from averages for individual banks for entire week. Figure Note.—Weekly averages of daily figures. For description of series for each bank indicates extent to which the bank’s weekly average pur­ and back data, see Aug. 1964 Bulletin, pp. 944-74. Revised data for chases and sales are offsetting. Jan. 1976 may be obtained from the Public Information Office, Office of 3 Federal funds loaned, net funds supplied to each dealer by clearing the Secretary, Board of Governors of the Federal Reserve System, Wash­ ington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 F.R. BANK INTEREST RATES □ MAY 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 rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 4/30/76 date rate 4/30/76 date rate 4/30/76 date3 rate 4/30/76 date rate Boston..................... 51/2 1/19/76 6 6 1/19/76 61/2 6 Vi 1/19/76 7 81/2 1/19/76 9 New York............... 5Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 Philadelphia........... 5*4 1/19/76 6 6 1/19/76 6V4 6Vi 1/19/76 7 8 Vi 1/19/76 9 Cleveland................ 5 Vi 1/19/76 6 6 1/19/76 6% 61/2 1/19/76 7 8 Vi 1/19/76 9 Richmond............... 5Vi 1/19/76 6 6 1/19/76 61/2 6% 1/19/76 7 81/i 1/19/76 9 Atlanta.................... 5% 1/19/76 6 6 1/19/76 61/2 6^ 1/19/76 7 81/i 1/19/76 9 Chicago................... 51/2 1/19/76 6 6 1/19/76 6Vi 6*i 1/19/76 7 8 Vi 1/19/76 9 St. Louis................. 51/2 1/23/76 6 6 1/23/76 6Vi 6% 1/23/76 7 81/2 1/23/76 9 Minneapolis........... 5% 1/19/76 6 6 1/19/76 61/2 61/2 1/19/76 7 8 Vi 1/19/76 9 Kansas City........... 5 Vi 1/19/76 6 6 1/19/76 6Vi 6i/i 1/19/76 7 8Vi 1/19/76 9 Dallas...................... 5 Vi 1/19/76 6 6 1/19/76 61/2 61/i 1/19/76 7 8 Vi 1/19/76 9 San Francisco........ 5% 1/19/76 6 6 1/19/76 61/2 6 Vi 1/19/76 7 81/2 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 21/z 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11............... 434-5 5 30. 4 4 19............... 434 434 1956—Apr. 13............. 21/2-3 23/4 Dec. 13............... 41^-434 434 20............. 234-3 23/4 1965—Dec. 6. 4 -41/2 41/2 1 7 41/2-43/4 4 Vi Aug. 24............. 234-3 3 13. 41/2 41/2 24............... 41/2 41/2 31............. 3 3 1967—Apr. 7. 4 -4i/2 4 1973—Jan. 15............... 5 5 1957—Aug. 9............. 3 -3i/2 3 14. 4 4 Feb. 26............... 5 -5 Vi 5 Vi Nov. 2 1 5 3 ... .......... 3 31 - / 3 2 i /2 3 3% Nov. 2 2 0 7 . . 4 41 - / 4 2 1/2 4 41 1 / / 2 2 M Ap a r r . . 2 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 5 2 1 - / 5 2 3/4 5 5 V V i i 1958—J D a e n c . . 2 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 234 3 -3 3 3 1968— A M p a r r . . 2 1 1 2 9 5 . . . 4 5 1/ 5 2 - - 5 5 1/2 4 5 51 % /2 May 1 1 4 1. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 5 6 4 3 - 4 6 6 6 534 2 4 234-3 234 26. 51/2 5% June 11............... 6 -61/2 61/2 M A M p a a r r y . . 2 1 1 7 9 1 8 . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 1 ^ / / 2 1 4 4 - 1 - 3 - 4 2 4 3 2 3 1 / 4 4 2 2 2 1 m 1 1 1 V / / 4 4 4 4 D Au ec g . . 2 1 3 1 0 0 6 8 . . . . 5 5 1 1 / 4 5 5 4 1 - 1 - 5 / 5 4 2 1 1 / / 2 2 5 5 5 5 1 1 1 1 / / / / 4 2 2 2 J A u u ly g . 1 2 1 2 4 5 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 7 7 V - V 7 i i 1/2 6 7 7 7 1 V V /2 i i Aug. 15............ I34-2 1% 1969—Apr. 4, 51/2-6 6 1974—Apr. 25............... 7 Vi-8 8 Sept. 12............ 13/4-2 2 8, 6 6 30.............. 8 8 23............ 2 2 Dec. 9............... 734-8 734 Oct. 24............. 2 -21/2 2 1970—Nov. 11, 534-6 6 1 6 734 734 Nov. 7............. 21/2 21/2 13, 534-6 53/4 16, 534 534 1975—Jan. 6............... 71/4-734 734 1959—Mar. 6........... 2i/i-3 3 Dec. 1 5i/2-53/4 534 10............... 71/4-734 71/4 16........... 3 3 4, 5i/2-53/4 5 Vi 2 4 714 71/4 May 29........... 3 -31/2 31/2 11 5 Vi 5 Vi Feb. 5............... 634-714 634 J S u ep n t e . 1 12 1 . . . . . . . . . . . . . . . . . . . . . . 3V 3 i V -4 i 4 3 V4 1971—Jan. 8, 5^4-51/2 5*4 Mar. 1 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61/ 6 4 3 - 4 634 6 61 3 / 4 4 18........... 4 4 15. 51/4 51/4 14............... 61/4 61/4 1960—June 3........... 3^2-4 4 2 1 2 9 , , 5 5 - -5 5 1 1 / / 4 4 5 5 1/4 May 2 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -61/4 6 6 S A e u p g t . . 1 1 1 9 2 0 . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 V 3 3 i 1 - - / 4 2 3 1 /2 3 3 3 3 1 i / / 2 i J F u e l b y . 2 1 1 1 9 6 9 3 , 4 43 3 5 4 4 4 3 - - / 5 5 4 5 5 5 434 1976—Jan. 2 1 3 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5V 5 i i - / 6 i 5 5% i/i 1963—July 17........... 3 -31/2 3% 23 5 5 In effect, Mar. 31, 1976 5Vi 5Vi 26........... 31/2 31/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 o 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............... 161/2 12 4 1966—July 14,21........... 4 4 5 Sept. 8,15........... 6 1967—Mar. 2................. 31/2 31/2 Mar. 16............... 3 3 1968—Jan. 11,18........... 161/2 17 12 121/2 1969—Apr. 17................ 17 17% 121/z 13 1970—Oct. 1................... 5 Beginning Nov. 9, 1972 Net demand2,4 Time3 Other time Effective date 0-5, maturing in— Over 5 5, 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 16% 17% 73 73 75 Nov. 16..................... 13 1973 July 19....................... 10% 12% 13% 18 1974 Dec. 12..................... 17% 6 3 1975—Feb. 13..................... 7% 10 12 13 16% Oct. 30...................... 8 1 3 8 1 1976 Jan. 8......................... 3 82% 82% In effect Apr. 30, 1976___ 71/2 10 12 13 16% 3 3 8 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 □ MAY 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: i Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days........... 4 41/2 Less than $100,000: 90 days to 1 year. 5 30-89 days........................ 5 5 5 5 1-2 years............. 5 51/2 90 days to 1 year............. 5Vi 5'A 51/2 51/2 2 years or more.. 5V4 1-2 Vi years....................... 6 6 6 6 Single-maturity: 2Vi years or more........... 6V2 61/2 61/2 61/2 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 .. . . . . 5 % 5 5 ! % /2 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . (5) 71/4 m m 71/2 $100,000 or more: Governmental units........ (6) (6) 71/2 IVa 30-59 days........... 5Vz (3) $100,000 or more............... (3) (3) (3) (3) 60-89 days........... 5% (3) 90-179 days......... 5% 6 (3) 180 days to 1 year 6% (3) 1 year or more... (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 6Yz per cent ceiling that applies to time de­ 2 Multiple-maturity time deposits include deposits that are automati­ posits maturing in 2l/i years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 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 614 per centl June 24, 1970 tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 60-89 days 6V2 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 7!Vi per cent j 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 s date date (T) 1937—Nov. 1 1945—Feb. 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. 75 75 1946—Jan. 21 1947—Jan. 31 . 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 20 1955—Jan. 3, 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 70 70 1958—Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 15 70 70 Oct. 16 1960—July 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5 50 50 1963—Nov. 6 1968—Mar. 10. 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 1972—Nov. 24 1974—Jan. 65 50 65 EflFective 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

MAY 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 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,r~ 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—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 47 300 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... 243 600 110 100 73 Feb.. 1,664 389 -1,153 177 174 63 968 59 200 Mar.. 1,069 511 600 349 185 107 -349 63 24 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur­ Net Period Govt, chase change ; securi­ agree­ Repur­ Gross Gross Gross ties Sales or ments, chase pur­ Gross Redemp­ Gross pur­ pur­ Gross pur­ redemp­ net Out­ agree­ chases sales tions sales chases chases sales chases tions right ments 1970. 12,362 5,214 2,160 12,177 12,177 33,859 33,859 4,988 -6 4,982 1971. 12,515 3,642 2,019 16,205 16,205 44,741 43,519 8,076 485 22 181 8,866 1972. 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -9 -145 272 1973. 18,121 4,880 4,592 45,780 45,780 74,755 74,795 8,610 865 239 29 -2 -36 9,227 1974. 13,537 5,830 4,682 64,229 62,801 71,333 70,947 1,984 3,087 322 469 511 420 6,149 1975. 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- 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.. . 563 600 11,407 11,503 18,135 14,919 2,037 239 187 5 98 2,567 Feb... 2,003 200 7,551 7,957 17,753 20,943 -982 297 -236 -70 -109 -1 ,101 Mar. . 1,380 600 12,697 12,082 16,000 14,783 763 217 -138 -31 812 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 (millions of dollars): June Note.—Sales, redemptions, and negative figures reduce System hold­ 1971, 955; Sept. 1972, 38; Aug. 1973, 351; Sept. 1973, 836; Nov. 1974, ings; all other figures increase such holdings. Details may not add to 131; Mar. 1975, 1,560; 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 □ MAY 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1976 1976 1975 Apr. 28 Apr. 21 Apr. 14 Apr. 7 Mar. 31 Apr. 30 Mar. 31 Apr. 30 Assets Gold certificate account................................... 11,599 11,599 11,599 11,599 11,599 11,599 11,599 11,620 Special Drawing Rights certificate account. 500 500 500 500 500 500 500 400 Cash........................................................... 337 344 351 359 367 342 367 347 Loans: Member bank borrowings............... 246 174 322 41 54 30 54 1,539 Other..................................................... Acceptances: Bought outright.................................. 486 506 504 525 540 490 540 689 Held under repurchase agreements. 323 344 169 343 505 343 496 Federal agency obligations: Bought outright................................... 6,607 6,607 6,607 6,607 6,607 6,607 6,607 5,189 Held under repurchase agreements. 196 264 100 287 132 287 882 U.S. Govt, securities: Bought outright: Bills.............................. 36,379 35,453 32,680 30,464 36,731 37,004 36,731 37,222 Certificates—Special. Other.. Notes............................ 44,940 44,940 44,614 44,614 44,684 44,941 44,684 42,488 Bonds.......................... 5,916 5,916 5,878 5,878 5,878 5,916 5,878 3,913 Total bought outright....................... 1 87,235 i 86,309 i 83,172 i 80,956 i 87,293 1 87,861 i 87,293 1 83,623 Held under repurchase agreements. 4,142 4,971 2,078 2,460 3,953 2,460 4,223 Total U.S. Govt, securities. 91,377 91,280 85,250 80,956 89,753 91,814 89,753 87,846 Total loans and securities...........~......... 99,235 99,175 92,952 88,129 97,584 99,578 97,584 96,641 Cash items in process of collection... * 8,326 * 8,920 8,475 7,829 6,939 * 6,225 6,939 7,034 Bank premises........................................ 338 336 336 335 333 337 333 277 Operating equipment.............................. 18 18 18 18 18 18 18 2 Other assets: Denominated in foreign currencies. 936 935 955 569 571 932 571 2 All other............................................... 3,059 3,388 3,012 2,791 2,785 2,993 2,785 3,016 Total assets. * 124,348 *125,215 118,198 112,129 120,696 * 122,524 120,696 119,339 Liabilities F.R. notes............................................... 77,130 77,494 77,662 76,957 75,982 76,898 75,982 69,561 Deposits: Member bank reserves.................... * 28,033 * 28,878 28,368 24,435 28,150 * 26,989 28,150 32,028 U.S. Treasury—General account. 9,023 7,894 2,257 1,456 7,144 9,806 7,144 8,363 Foreign............................................... 287 252 242 246 305 305 305 270 Other: All other 2...................................... 741 1,114 767 796 762 796 573 Total deposits. * 38,084 * 38,138 31,655 26,904 36,395 * 37,862 36,395 41,234 Deferred availability cash items............. 5,687 6,123 5,720 5,290 4,829 4,308 4,829 5,092 Other liabilities and accrued dividends. 1,119 1,242 1,054 980 1,099 1,091 1,099 1,192 Total liabilities............................................ *122,997 116,091 110,131 118,305 * 120,159 118,305 117,079 Capital accounts Capital paid in..................................................................... 946 946 945 945 945 947 945 906 Surplus................................................................................... 929 929 929 929 929 929 929 897 Other capital accounts........................................................ 453 343 233 124 517 489 517 457 Total liabilities and capital accounts.......................... *124,348 *125,215 118,198 112,129 120,696 *122,524 120,696 119,339 Contingent liability on acceptances purchased for foreign correspondents................................................... 2 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................... 45,384 44,770 44,359 43,770 43,737 45,603 43,737 38,174 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).......... 82,446 82,391 82,144 81,669 81,420 82,456 81,420 74,871 Collateral held against notes outstanding: Gold certificate account................................... 11,597 11,597 11,597 11,597 11,597 11,546 11,597 2,587 Special Drawing Rights certificate account . 302 302 302 302 302 302 302 138 Acceptances......................................................... U.S. Govt, securities......................................... 72,580 72,380 72,340 72,070 72,095 72,680 72,095 73,930 Total collateral. 84,479 84,279 84,239 83,969 83,994 84,528 83,994 76,655 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

MAY 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 1975 Apr. 28 Apr. 21 Apr. 14 Apr. 7 Mar. 31 Apr. 30 Mar. 31 Apr. 30 246 174 323 42 54 30 54 1,538 244 172 315 33 44 27 44 1,536 2 2 8 9 10 3 10 2 Acceptances—Total............................................................. 809 850 673 525 883 995 883 1,185 379 411 238 85 434 556 434 594 16-90 days......................................................................... 235 243 255 273 293 226 293 366 195 196 180 167 156 213 156 225 91,377 91,280 85,250 80,956 89,753 91,814 89,753 87,846 8.412 9,111 4,823 3,892 7,365 7,515 7,365 13,679 16-90 days......................................................................... 16,781 16,093 15,347 11,953 16,662 17,358 16,662 17,837 91 days to 1 year............................................................. 23,395 23,287 22,629 22,660 23,205 24,224 23,205 21,009 30,642 30.642 30,393 30,393 30,463 30,570 30,463 21,772 7,671 7 ”671 7.620 7,620 7,620 7,671 7,620 10,759 4,476 4,476 4,438 4,438 4,438 4,476 4,438 2,790 Federal agency obligations—Total.................................. 6,803 6,871 6,707 6,607 6,894 6,739 6,894 6,071 Within 15 days1............................................................... 238 306 118 18 328 174 328 926 16-90 days......................................................................... 273 273 286 286 278 273 278 192 91 days to 1 year............................................................. 962 962 946 946 930 962 930 616 1-5 years............................................................................ 3,255 3,255 3,289 3,289 3,306 3,255 3,306 2,567 5-10 years.......................................................................... 1,422 1,422 1,420 1,420 1,404 1,422 1,404 1,209 Over 10 years.................................................................... 653 653 648 648 648 653 648 561 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—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................................. c22,705.7 10,810.3 4,770.6 11,895.4 7,124.9 c127.5 330.3 114.3 81.8 68.8 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 c4,756.7 11,891.3 7,134.6 124.4 328.6 c114.2 c80.0 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................................. 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................................... *•23,845.0 11,517.7 *•4,789.0 *■12,327.3 *•7,538.3 *•132.4 366.0 *■115.4 *•82.9 *•70.3 Feb.................................. *■25,524.9 12,212.0 r5,321.1 *-13,312.9 *7,991.8 140.9 375.4 128.0 89.6 74.6 Mar................................. 26,474.5 12,629.6 5,556.1 13,844.9 8,288.8 144.6 377.5 131.4 92.5 77.2 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s include some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of the July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 MONEY STOCK □ MAY 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M-> Mz M4 M5 Mi M2 Mz Mi Mb 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—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 1,147.2 291 .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 '1.091.9 746.2 '1,174.8 303.4 668.4 1,093.6 751.8 '1,177.1 1976—Jan................................... 295.3 669.0 1,102.4 748.2 *•1,181.7 '301.3 674.1 '1,106.0 752.6 '1,184.4 Feb.................................. r296.9 r677.0 rl,115.7 752.3 '1,191.1 293.2 673.8 *■1,111.8 '746.9 '1,184.8 Mar................................. 298.4 681.7 1,125.4 754.8 1,198.6 295.6 681.6 1,126.8 753.3 1,198.5 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 Mr. 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. M5: M% 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, M4, 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 Mem­ tic Total CD’s1 Other Total ber nonmem­ ber 1973—Dec................. 61.5 209.0 63.5 300.9 364.4 348.0 62.7 156.5 56.3 215.7 64.0 298.2 362.2 345.3 6.3 1974—Dec................ 67.8 215.3 89.8 329.3 419.1 369.2 69.0 159.7 58.5 222.2 90.5 326.3 416.7 366.3 4.9 1975—Mar................ 69.4 214.7 89.8 339.0 428.7 380.7 68.8 153.4 56.0 212.6 88.1 341 .4 429.4 '382.3 3.8 Apr................. 69.5 215.4 88.4 341 .8 430.1 386.0 69.1 156.9 57.4 217.4 85.8 344.6 430.4 388.9 4.0 May............... 70.2 217.4 85.1 346.1 431 .2 391.6 70.0 153.4 56.6 212.9 84.1 349.1 433.2 393.8 4.1 June............... 71.0 220.0 84.1 351 .4 435.5 397.8 71.2 157.2 58.9 219.1 82.3 353.2 435.5 401.0 4.2 July................ 71.3 220.6 82.1 355.5 437.6 404.1 71.9 157.9 59.4 220.3 81.3 355.7 436.9 407.2 3.4 Aug................ 71 .9 221 .3 78.8 357.4 436.2 410.0 72.1 155.8 59.0 217.8 81.1 357.3 438.4 409.9 2.7 Sept................ 72.0 221.6 79.1 359.2 438.3 415.2 71 .9 157.0 59.7 219.9 82.7 357.7 440.5 413.3 3.9 Oct.................. 72.6 220.8 80.9 362.3 443.2 420.0 72.5 156.6 60.3 219.9 83.7 360.7 444.4 417.2 3.4 Nov............ 73.4 222.3 81 .8 365.9 447.6 424.4 73.9 158.9 61 .5 223.6 82.9 362.1 444.9 420.4 3.5 Dec................. 73.7 221.3 82.9 368.3 451.2 '428.6 75.0 162.1 62.9 228.4 83.5 365.0 448.4 '425.3 4.2 1976—Jan.................. 74.2 221.2 79.2 373.7 452.9 '433.5 73.7 161.9 62.5 227.6 78.5 372.8 451.3 '431.9 3.8 Feb................. 75.0 '221.9 75.4 380.1 455.5 '438.8 74.0 155.7 60.3 219.2 73.0 380.6 453.7 '438.0 4.6 Mar................ 75.7 222.8 73.1 383.2 456.4 443.8 75.1 156.7 60.7 220.5 71.7 386.0 457.7 445.2 4.0 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

MAY 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 able2 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—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 Feb... . 34.05 33.97 33.83 31 .85 507.6 339.5 165.5 2.6 504.2 337.5 163.4 3.4 515.9 512.6 Mar... . 34.00 33.95 33.78 31 .75 507.8 339.4 165.8 2.5 506.4 339.6 163.9 2.9 516.4 515.0 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 for 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 T reas- Other4 ments1 Total1 loans Plus Treas­ Other4 sold2 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—May 28___ 702.0 492.8 497.5 179.1 181.9 68.2 141.0 698.3 491.6 496.3 178.7 181.5 65.0 141.7 June 30___ 705.0 489.9 494.6 176.3 179.2 72.4 142.7 709.3 497.2 501.9 179.0 181.9 68.2 143.9 July 30*.... 706.4 489.6 494.1 177.6 180.4 73.4 143.4 704.9 491.7 496.2 177.5 180.3 69.6 143.6 Aug. 27*.... 710.4 490.7 495.2 177.5 180.3 75.6 144.1 705.6 489.7 494.2 176.0 178.8 72.1 143.8 Sept. 24*.... 711.6 490.4 494.9 176.4 179.2 77.1 144.1 711.5 491.7 496.2 176.8 179.6 75.4 144.3 Oct. 29*.... 715.0 494.1 498.8 177.9 180.8 75.1 145.8 713.3 492.4 497.1 176.6 179.5 76.1 144.8 Nov. 26*.... 721.3 498.0 502.7 178.9 181.7 76.3 147.0 720.9 496.0 500.7 177.8 180.6 79.6 145.3 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 Mar. 31*.. .. 730.5 498.9 503.1 174.6 177.2 88.3 143.3 727.6 494.9 499.1 174.5 177.1 89.4 143.4 Apr. 28*.... 733.5 498.5 502.7 173.6 176.2 91.3 143.7 729.9 494.5 498.7 173.6 176.2 90.3 145.1 1 Adjusted to exclude domestic commercial interbank loans. 6 As of Oct. 31, 1974, “Total loans and investments” of all commercial 2 Loans sold are those sold outright for banks’ own foreign branches, banks were reduced by $1.5 billion in connection with the liquidation nonconsolidated nonbank affiliates of the bank, the banks’ holding of one large bank. Reductions in other items were: “Total loans,” $1.0 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion (of which $0.6 billion was in “Commercial and industrial loans”), the holding company. Prior to Aug. 28, 1974, the institutions included and “Other securities,” $0.5 billion. In late November “Commercial and had been defined somewhat differently, and the reporting panel of banks industrial loans” were increased by $0.1 billion as a result of loan re­ was also different. On the new basis, both “Total loans” and “Com­ classifications at another large bank. mercial and industrial loans” were reduced by about $100 million. 3 Reclassification of loans at one large bank reduced these loans by Note.—Total loans and investments: For monthly data, Jan. 1959about $400 million as of June 30, 1972 and by about $700 million as of June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, March 31, 1976. Aug. 1968 Bulletin, pp. A-94-A-97. For a description of the current 4 Farmers Home Administration insured notes included in “Other seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and securities” rather than in loans beginning June 30, 1971, when such notes the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial loans: totaled about $700 million. For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. 5 Data beginning June 30, 1974, include one large mutual savings A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for bank that merged with a nonmember commercial bank. As of that date last Wednesday of month except for June 30 and Dec. 31; data are partly there were increases of about $500 million in loans, $100 million in “Other or wholly estimated except when June 30 and Dec. 31 are call dates. securities,” and $600 million in “Total loans and investments.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 COMMERCIAL BANKS □ MAY 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 assets3 and row­ ac­ of insurance Total Loans capital Total3 Demand ings counts6 banks l U.S. Other ac­ De­ Treas­ 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series 7 All commercial banks: 1I 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 8.. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31... 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 319.. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971-—Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972-—Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973-—Dec. 31... 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974-—Dec. 31... 744,107 549,183 54,451140,473128,042 919,552 747,903 43,48311,496 4,807 267,506 420,611 58,369 63,650 14,465 1975-—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 p.. 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*.. 754,210 525,170 85,570143,470109,590 922,850 736,740 31,45010,990 4,110 242,230 447,960 68,000 68,940 14,625 Mar. 31 io. 763,860 531,090 89,410143,360119,080 928,870 761,790 37,40011,480 2,490 256,040 454,380 62,960 69,900 14,629 Apr. 28*.. 762,160 526,730 90,340145,090111,500 920,510 748,270 32,18010,610 4,200 249,310 451,970 67,990 70,440 14,629 Membersof F.R. System: 1941-—Dec. 31... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947-—Dec. 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970-—Dec. 319.. 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 38,921100,073106,995 715,615 575,563 41,06210,052 3,183 204,203 317,064 52,850 48,240 5,780 1975-—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 49,610100,118107,152 716,364 573,382 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 57,477100,753102,106 714,149 564,856 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... 562,940 401,731 61,869 99,340 91,914 704,357 552,942 29,145 9,357 2,977 183,458 328,005 62,051 52,300 5,769 Mar. 31 io. 569,913 406,148 64,636 99,129100,455 710,228 573,878 34,934 9,848 1,769 194,932 332,395 57,470 53,191 5,779 Apr. 28*.. 567,384.402,147 64,892100,345 93,743 702,130 561,110 29,923 8,978 3,281 189,361 329,567 62,002 53,753 5,779 Call date series Insured banks: Total: 1941_Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 319.. 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... 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1960—Dec. 31... 107,546 63,694 32,712 11,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 111 11,098 4,530 1970—Dec. 319.. 271,760 187.554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 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

MAY 1976 d COMMERCIAL BANKS A15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans ancl 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 counts6 banks Treas­ Other capital De­ Time ury 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. 31».. 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 1960—Dec. 31.... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 319... 92,399 57,489 16.039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 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 1,291 253 13 329 852 1947—Dec. 31«... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1' ,392 478 4 325 783 1960—Dec. 31.... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 319... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—Dec. 31.... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31.... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31.... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—Dec. 31.... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 2,062 2,857 2.382 611 249 1975—June 30... 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 2,124 3,320 3,110 570 253 Total nonmember: 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167“ 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31.... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16.562 154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1,592 60,802 89,784 3.383 13,386 8,436 1974—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 figures for all bank-premises subsidiaries and other significant majoritysecurities and Export-import Bank portfolio fund participations were owned domestic subsidiaries) and (2) reporting of figures for total loans reclassified from loans to securities effective June 30, 1966. This reduced and for individual categories of securities on a gross basis—that is, before “Total loans” and increased “Other securities” by about $1 billion. deduction of valuation reserves—rather than net as previously reported. “Total loans” include Federal funds sold, and beginning with June 1967 10 See last paragraph of note 1, second paragraph of note 4, and securities purchased under resale agreements, figures for which are in­ note 6. cluded in “Federal funds sold, etc.,” on p. A-16. Effective June 30, 1971, Farmers Home Administration notes were Note.—Data are for all commercial banks in the United States (including classified as “Other securities” rather than “Loans.” As a result of this Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to “Other securities” all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; nondeposit trust companies; and U.S. branches of foreign banks. Effective Mar. 31, 1976, includes “reserves for loan losses” and “un­ Figures for member banks before 1970 include mutual savings banks earned income on loans.” as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks See also table (and notes) at the bottom of p. A-24. are not included in insured commercial banks. 2 See first 2 paragraphs of note 1. Effective June 30, 1969, commercial banks and member banks exclude 3 Reciprocal balances excluded beginning with 1942. a small national bank in the Virgin Islands; also, member banks exclude, 4 Includes items not shown separately. See also note 1. and noninsured commercial banks include, through June 30, 1970, a small Effective IVIar. 31, 1976, “reserves for loan losses” and unearned income member bank engaged exclusively in trust business; beginning 1973, on loans,” which for all commercial banks are estimated to be approx­ exclude 1 national bank in Puerto Rico. imately $14.5 billion, have been netted against “other assets” and “other Beginning Dec. 31, 1973, June 30, 1974, and Dec. 31, 1974, June 30, liabilities” and, therefore, against “total assets/liabilities.” 1975, respectively, member banks exclude and noninsured nonmember 5 See third paragraph of note 1 above. banks include 1, 2, 3, and 4 noninsured trust companies that are member ® Effective Mar. 31, 1976, includes “reserves for securities” and a of the Federal Reserve System. portion of “reserves for loan losses.” Comparability of figures for classes of banks is affected somewhat by 7 For the last-Wednesday-of-the-month series, figures for call dates changes in F.R. membership, deposit insurance status, and by mergers are shown for June and December as soon as they became available. etc. 8 Beginning with Dec. 31, 1947, the series was revised; for description, Figures are partly estimated except on call dates. see note 4, p. 587, May 1964 Bulletin. For revisions in series before June 30, 1947, see July 1947 Bulletin, 9 Figure takes into account the following changes, which became pp. 870-71. effective June 30, 1969: (1) inclusion of consolidated reports (including Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 COMMERCIAL BANKS □ MAY 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 Reserves with F.R. Banks.............................................. 26,890 26 890 26,890 5,656 1,800 10 084 9 350 Demand balances with banks in United States......... 34,278 31*788 19,122 6’940 * 165 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 Trading-account securities............................................ 6,198 6,188 6,136 2,468 556 2,896 217 62 U.S. Treasury............................................................... 2,945 2,934 2,909 1,399 344 1,078 88 35 Other U.S. Govt, agencies......................................... 941 941 934 239 27 633 35 7 States and political subdivisions............................... 1,907 1,907 1,893 736 117 952 89 14 All other......................................................................... 406 406 400 95 68 233 5 6 Bank investment portfolios............................................ 205,860 203,705 143,592 14,340 5,323 47,096 76,832 62,268 U.S. Treasury............................................................... 65,246 64,899 46,701 5,969 1,845 15,983 22,904 18,545 Other U.S. Govt, agencies......................................... 32,941 32,549 20,279 1,515 544 5,715 12,505 12,662 99,566 99,184 71,869 6,294 2,711 24,135 38,729 27,697 All other......................................................................... 8,108 7,073 4,743 562 224 1,264 2,694 3,364 Federal funds sold and securities resale agreements... 38,841 37,383 28,951 1,747 1,263 14,807 11,133 9,891 Commercial banks........................................................... 34,083 32,625 24,296 852 1,041 11,800 10,604 9,787 Brokers and dealers......................................................... 3,054 3,054 2,977 108 203 2,195 471 77 Others................................................................................. 1,704 1,704 1,677 787 19 812 59 27 496,990 488,888 384,247 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 Secured by farmland................................................... 6,105 6,090 2,676 5 2 327 2,342 3,428 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 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 properties............................................ 6,748 6,744 5,521 1,115 55 2,600 1,751 1,227 762 761 706 136 25 331 214 56 5,986 5,983 4,815 978 30 2,269 1,537 1,171 43,981 43,923 31,868 3,681 436 11,667 16,084 12,113 Loans to domestic and foreign banks......................... 11,155 8,644 8,075 3,543 504 3,252 776 3,080 Loans to other financial institutions........................... 32,413 32,164 30,964 11,756 4,720 12,175 2,314 1,449 Loans on securities to brokers and dealers............... 5,534 5,447 5,373 3,931 659 649 134 161 Other loans for purch./carry securities....................... 3,836 3,818 3,177 516 277 1,497 887 658 Loans to farmers............................................................. 19,071 19,054 10,768 88 190 2,554 7,935 8,304 Commercial and industrial loans.................................. 178,993 174,436 147,242 39,616 12,517 55,802 39,307 31,751 Loans to individuals........................................................ 101,816 101,512 72,806 4,942 1,540 25,865 40,458 29,010 Instalment loans........................................................... 79,246 79,033 56,275 3,062 804 20,229 32,180 22,971 Passenger automobilies.......................................... 32,128 32,026 21,423 421 151 6,621 14,230 10,706 Residential-repair/modernize................................ 5,627 5,611 4,077 202 49 1,717 2,109 1,550 Credit cards and related plans............................. 10,835 10,835 9,551 1,015 399 5,320 2,818 1,284 8,240 8,240 7,389 742 369 4,181 2,096 851 Check and revolving credit plans..................... 2,595 2,594 2,162 273 29 1,139 722 433 Other retail consumer goods................................. 15,273 15,242 10,661 160 104 3,765 6,632 4,611 Mobile homes....................................................... 8,807 8,801 6,340 100 48 2,276 3,916 2,467 Other...................................................................... 6,466 6,441 4,321 60 56 1,489 2,716 2,144 Other instalment loans............................................ 15,383 15,318 10,563 1,265 101 2,807 6,390 4,820 Single-payment loans to individuals........................ 22,570 22,479 16,531 1,880 736 5,636 8,278 6,039 All other loans.................................................................. 12,726 12,568 11,400 2,995 773 5,103 2,529 1,326 Total loans and securities.................................................. 747,889 736,164 562,926 93,894 29,654 207,223 232,155 184,963 Fixed assets—Buildings, furniture, real estate............... 16,254 16,175 12,183 1,263 500 4,894 5,526 4,071 Investments in subsidiaries not consolidated................. 1,820 1,798 1,777 797 146 754 81 42 Customer acceptances outstanding.................................. 9,462 9,223 8,993 4,795 427 3,438 332 469 Other assets........................................................................... 26,917 26,239 23,592 8,889 1,122 9,756 3,825 3,325 Total assets............................................................................ 931,057 914,781 716,623 139,333 36,268 264,990 276,032 214,434 Number of banks................................................................. 14,573 14,320 5,794 12 9 155 5,618 8,119 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

MAY 1976 □ COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1975 (Assets and liabilities are shown in millions of dollars.) Member banks1 All Insured Large banks Non­ Account commercia commercia1 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 Bank acceptances outstanding.......................................... 10,060 9,814 9,583 5,375 430 3,447 332 All 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 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 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 Undivided profits......................................................... 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 25,508 199,612 234,427 178,157 506,945 497,466 385,936 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 Trading account securities.......................................... .7 .7 .9 1.8 1.5 1.1 . 1 U.S. Treasury........................................................... .3 .3 .4 1.0 .9 .4 States and political subdivisions........................... .2 .2 .3 .5 .3 .4 All other trading account securities..................... . 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 U.S. Treasury ...................................................... 7.0 7.1 6.5 4.3 5.1 6.0 8.3 8.6 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 All other assets................................................................. 5.8 5.8 6.5 11.3 6.1 7.1 3.5 3.7 Total loans and securities.............................................. 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 Total capital accounts..................................................... 7.1 7.2 7.0 7.0 6.2 6.6 7.6 7.6 9 1 Number of banks................................................................. 14,573 14,320 5,794 12 155 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 □ MAY 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA (In millions of dollars) Federal funds sold, etc.2 Other To brokers For purchasing and dealers or carrying securities To nonbank Total involving— financial loans institutions Wednesday and To brokers To invest­ To Com­ and dealers others ments 1 com­ To mer­ Agri­ Total mer­ US. Other others Total1 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 ties1 secs. secs. COS., etc. I.arge banks— Total 1975 Apr. 2................... 392,865 21,636 17,181 2,364 1,285 806 282,112 126,294 3,409 1,330 3,065 82 2,360 9,629 20,286 59,773 9................... 393,715 21,672 16,772 2,995 1,158 747281,383 126,182 3,427 1,431 2,913 82 2,352 9,367 20,283 59,741 16................... 393.163 20,480 16,661 1,828 1,255 736281,835 126,357 3,440 846 2,743 81 2,352 9,825 20,342 59,785 2 3 385.163 16,630 13,227 1,848 954 601279,585 125,458 3,465 731 2,504 79 2,350 9,125 20,256 59,760 3 0 386,258 16,882 13,625 1,538 993 726280,138 125,528 3,454 597 2,613 77 2,330 9,283 20,279 59,678 1976 Mar. 3................... 389,917 19,932 17,172 1,497 591 672270,615 115,952 3,666 1,256 4,547 83 2,310 8,432 17,857 59,612 10................... 395,638 23,434 17,909 3,320 890 1,315272,642 115,899 3,695 3,027 5,538 76 2,317 8,286 17,797 59,675 17................... 392,118 19,306 15,963 1,903 629 811271,919 115,768 3,683 2,026 5,725 73 2,316 8,299 17,771 59,660 2 4 388,123 16,918 14,300 1,391 573 654270,674 115,056 3,692 1,576 5,017 78 2,301 8,156 17,965 60,335 3 1 387,334 18,807 15,278 2,025 712 792267,989 114,556 3,729 1,104 4,957 78 2,329 8,533 17,960 60,541 Apr. 7................... 394,228 24,437 17,878 4,792 681 1,086 266,996 113,918 3,726 1,373 5,164 73 2,360 8,277 17,836 60,527 14................... 390,523 20,535 16,032 2,869 694 940 267,044 113,559 3,761 1,268 5,356 73 2,370 7,938 17,883 60,651 21................... 388,269 17,494 14,182 1,729 683 900 267,191 113,573 3,784 904 5,669 73 2,353 7,926 17,886 60,740 28................... 385,758 18,207 15,493 1,232 586 896 266,302 113,308 3,802 777 5,466 71 2,365 7,813 17,944 60,717 New York City 1975 Apr. 2................... 93,687 2,808 2,576 94 138 74,583 39,853 124 1,206 2,162 19 466 3,389 8,046 8,883 9................... 92,826 2,029 1,788 95 146 74,065 39,629 124 1,145 2,130 20 460 3,303 7,985 8,870 16................... 93,539 3,245 2,996 86 163 73,739 39,717 123 751 1,880 21 465 3,521 7,938 8,903 2 3 90,585 2,686 2,553 108 25 72,346 39,391 122 583 1,716 19 460 3,140 7,899 8,885 3 0 91,059 3,024 2,804 69 10 141 72,798 39,455 122 503 1,773 18 456 3,233 7,859 8,895 1976 Mar. 3................... 89,306 1,586 1,222 49 315 69,671 35,488 88 1,152 3,128 19 397 3,055 6,979 9,474 10................... 91,496 1,880 1,390 58 432 71,674 35,486 87 2,830 3,879 18 392 2,886 6,931 9,467 17................... 90,540 2,091 1,707 66 318 70,532 35,119 86 1,886 4,049 17 397 2,823 6,943 9,473 2 4 89,390 2,060 1,643 153 264 69,437 35,143 89 1,471 3,404 16 393 2,847 6,945 9,451 3 1 88,247 1,681 985 293 403 68,704 35,006 84 935 3,288 19 390 2,963 6,905 9,396 Apr. 7................... 89,028 1,981 945 754 282 68,254 34,609 81 1,138 3,329 17 396 2,829 6,835 9,386 14................... 88,655 2,453 1,786 108 559 68,173 34,392 81 1,053 3,409 16 396 2,693 6,833 9,401 21................... 89,467 2,905 1,863 427 49 566 67,967 34,263 78 777 3,734 16 385 2,671 6,884 9,402 28................... 87,232 1,924 1,297 132 495 66,921 34,146 78 657 3,549 13 386 2,640 6,904 9,360 Outside New York City 1975 Apr. 2................. 299,178 18,828 14,605 2,270 1,285 668 207,529 86,441 3,285 124 903 63 1,894 6,240 12,240 50,890 9 300,889 19,643 14,984 2,900 1,158 601 i 207,318 86,553 3,303 286 783 62 1,892 6,064 12,298 50,871 16................... 299,624 17,235 13,665 1,742 1,255 573; 208,096 86,640 3,317 95 863 60 1,887 6,304 12,404 50,882 2 3 294,578 13,944 10,674 1,740 954 576 207,239 86,067 3,343 148 788 60 1,890 5,985 12,357 50,875 3 0 295,199 13,858 10,821 1,469 983 585 207,340 86,073 3,332 94 840 59 1,874 6,050 12,420 50,783 1976 Mar. 3................. 300,611 18,346 15,950 1,448 591 357 200,944 80,464 3,578 104 1,419 64 1,913 5,377 10,878 50,138 1 0 304,142 21,554 16,519 3,262 890 883 200,968 80,413 3,608 197 1,659 58 1,925 5,400 10,866 50,208 17................. 301,578 17,215 14.256 1,837 629 493 201,387 80 j649 3,597 140 1,676 56 1,919 5,476 10,828 50,187 2 4 298,733 14,858 12,657 1,238 573 390 201,237 79,913 3,603 105 1,613 62 1,908 5,309 11,020 50,884 3 1 299,087 17,126 14,293 1,732 712 389 199,285 79,550 3,645 169 1,669 59 1,939 5,570 11,055 51,145 Apr. 7................. 305,200 22,456 16,933 4,038 681 804 198,742 79,309 3,645 235 1,835 56 1,964 5,448 11,001 51,141 14................. 301,868 18,082 14,246 2,761 694 381 198,871 79,167 3,680 215 1,947 57 1,974 5,245 11,050 51,250 21................. 298,802 14,589 12,319 1,302 634 334 199,224 79,310 3,706 127 1,935 57 1,968 5,255 11,002 51,338 28................. 298,526 16,283 14,196 1,100 586 401 199,381 79,162 3,724 120 1,917 58 1,979 5,173 11,040 51,357 ▲ 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

MAY 1976 □ WEEKLY REPORTING BANKS A19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—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, Loan of States corp. stocks, Wednesday loss and and Con­ For­ reserve political securities sumer eign All and un­ subdivisions instal­ govts.3 other earned Total Bills Total Do­ For­ ment income mes­ eign on Within 1 to After tic loans1 1 yr. 5 yrs. 5 yrs. Tax Certif. war­ All of rants4 other partici­ All pation5 other 6 Large banks— Total 1975 2,728 5,131 34,188 1,329 18,180 5,672 27,967 4,853 4,058 15,250 3,806 61,150 5,966 40,045 2,397 12,742 ..............Apr. 2 2,580 5,125 34,117 1,268 18,181 5,666 29,258 5,273 4,084 16,027 3,874 61,402 6,258 40,029 2,433 12,682 ...........................9 2,627 5,193 34,156 1,343 18,416 5,671 29,083 5,276 4,018 16,005 3,784 61,765 6,605 40,101 2,455 12,604 ..........................16 2,544 5.236 34,154 1 ,209 18,379 5,665 28,043 4,816 4,055 15,552 3,620 60,905 6,339 39,802 2,440 12,324 ..........................23 2,575 5.236 34,163 1,319 18,716 5,710 28,636 5,008 4,005 16,072 3,551 60,602 6,143 39,756 2,399 12,304 .........................30 1976 1,970 5,192 35,352 1,786 18,167 5,567 40,477 12,141 6,160 19,421 2,755 58,893 6,013 39,463 2,156 11,261 .............Mar. 3 1,931 5,040 35.343 1,771 17,812 5,565 40,265 12,485 6,083 19,098 2,599 59,297 6,286 39,599 2,108 11,304 .........................10 1,951 5,( 35,317 1,797 18,022 5,577 41,747 13,279 6,050 19,746 2,672 59,146 6,011 39,519 2,118 11,498 .........................17 1,964 5,153 35.344 1,790 17,804 5,557 41,432 13,149 5,982 19,656 2,645 59,099 5,900 39,604 2,174 11,421 .........................24 2,256 5,180 35,366 1,767 17,771 8,138 41,808 13,034 5,962 20,419 2,393 58,730 5,498 39,522 2,079 11,631 .........................31 2,133 5,057 35,385 1,765 17,586 8,184 43,949 14,368 6,039 21,080 2,462 58,846 5,488 39,642 2,223 11,493 .............Apr. 7 2,148 5,168 35,525 1,801 17,801 8.258 44,021 14,320 6,187 20,933 2,581 58,923 5,642 39,569 2,261 11,451 .... ................14 2,098 4,977 35,572 1,891 18,004 8.259 43,633 14,122 6,265 20,733 2,513 59,951 6,386 39,848 2,257 11,460 .........................21 1,999 4,877 35,746 1,885 17,836 8,304 41,561 12,168 6,161 20,759 2,473 59,688 5,981 39,813 2,364 11,530 .........................28 New York City 1975 1,389 2,567 3,569 668 3,927 1,685 6,329 798 626 3,613 1,292 9,967 1,681 5,516 176 2,594 .............Apr. 2 1,339 2,458 3,552 609 4,113 1,672 6,857 867 663 3,997 1,330 9,875 1,665 5,495 176 2,539 ......................... 9 1,352 2,506 3,557 648 4,035 1,678 6,452 719 551 3,924 1,258 10,103 1,843 5,600 202 2,458 .........................16 1,248 2,521 3,566 526 3,954 1,684 5,870 639 579 3,537 1,115 9,683 1,793 5,337 180 2,373 .........................23 1,296 2,474 3,563 614 4,239 1,702 5,758 493 517 3,686 1,062 9,479 1,638 5,273 179 2,389 .........................30 1976 650 2,391 3.753 619 4,184 1,706 9,034 3,175 944 4,362 553 9,015 1,153 6,107 193 1,562 ..............Mar. 3 572 2,298 3,772 590 4,196 1,730 8,961 3,397 945 4,159 460 8,981 1,056 6,183 187 1,555 .........................10 601 2,282 3.753 598 4,237 1,732 9,052 3,172 911 4,417 552 8,865 972 6,164 191 1,538 .........................17 589 2,358 3,746 599 4,111 1,725 9,051 3,142 863 4,447 599 8,842 964 6,178 187 1,513 .........................24 597 2,422 3.737 562 4,004 1.604 9,074 2,874 795 4,898 507 8,788 892 6,094 191 1,611 .........................31 601 2,331 3,735 588 3,984 1.605 10,045 3,580 868 5,026 571 8,748 860 6,117 193 1,578 .............Apr. 7 691 2,370 3,724 634 4,074 1,594 9,276 3,042 836 4,751 647 8,753 901 6,096 240 1,516 .........................14 696 2,196 3,730 654 4,086 1.605 9,304 3,183 829 4,628 664 9,291 1,472 6,134 212 1,473 .........................21 536 2,046 3.737 641 3,834 1.606 8,921 2,771 826 4,679 645 9,466 1,491 6,132 215 1,628 .........................28 Outside New York City 1975 1,339 2,564 30,619 661 14,253 3,987 21,638 4,055 3,432 11,637 2,514 51,183 4,285 34,529 2,221 10,148 .............Apr. 2 1,241 2,667 30,565 659 14,068 3,994 22,401 4,406 3,421 12,030 2,544 51,527 4,593 34,534 2,257 10,143 ......................... 9 1,275 2,687 30.599 695 14,381 3,993 22,631 4,557 3,467 12,081 2,526 51,662 4,762 34,501 2,253 10,146 .........................16 1,296 2,715 30,588 683 14,425 3,981 22,173 4,177 3,476 12,015 2,505 51,222 4,546 34,465 2,260 9,951 .........................23 1,279 2,762 30.600 705 14,477 4,008 22,878 4,515 3,488 12,386 2,489 51,123 4,505 34,483 2,220 9,915 .........................30 1976 1,320 2,801 31,599 1.167 13,983 3,861 31,443 8,966 5,216 15,059 2,202 49,878 4,860 33,356 1,963 9,699 ...............Mar. 3 1,359 2,742 31,571 1,181 13,616 3,835 31,304 9,088 5.138 14,939 2,139 50,316 5,230 33,416 1,921 9,749 .........................10 1,350 2,806 31,564 1,199 13,785 3,845 32,695 10,107 5.139 15,329 2,120 50,281 5,039 33,355 1,927 9,960 .........................17 1,375 2,795 31,598 1,191 13,693 3,832 32,381 10,007 5,119 15,209 2,046 50,257 4,936 33,426 1,987 9,908 .........................24 1,659 2,758 31,629 1,205 13,767 6,534 32,734 10,160 5,167 15,521 1,886 49,942 4,606 33,428 1,888 10,020 .........................31 1,532 2,726 31,650 1,177 13,602 6,579 33,904 10,788 5,171 16,054 1,891 50,098 4,628 33,525 2,030 9,915 .............Apr. 7 1,457 2,798 31,801 1.167 13,727 6,664 34,745 11,278 5,351 16,182 1 ,934 50,170 4,741 33,473 2,021 9,935 .........................14 1,402 2,781 31,842 1,237 13,918 6,654 34,329 10,939 5,436 16,105 1,849 50,660 4,914 33,714 2,045 9,987 .........................21 1,463 2,831 32,009 1,244 14,002 6,698 32,640 9,397 5,335 16,080 1,828 50,222 4,490 33,681 2,149 9,902 .........................28 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 WEEKLY REPORTING BANKS □ MAY 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ Domlestic Wednesday process with and do­ sidiar­ assets total States inter!bank of F.R. coin mestic ies not liabil- and collec­ Banks banks consol­ tites1 polit­ For­ tion idated Total ical U.S. eign 7 IPC sub­ Govt. Com­ Mutual govts., divi­ mer­ sav­ etc. 3 sions cial ings Large banks— Total 1975 Apr. 2.................................... 33,494 22,312 4,543 11,670 1,700 35,635 502,219 162,541 118,210 6,480 1,297 22,436 912 1,281 9.................................... 30,125 22,245 4,499 12,773 1,732 35,810500,899 159,832 115,816 5,849 1,031 23,244 807 1,373 16.................................... 33,814 24,948 4,692 11,987 1,698 35,373 505,675 164,753 120,088 6,364 2,370 22,586 795 1,260 23.................................... 30,704 21,765 4,814 10,975 1,708 35,306490,435 156,719 114,171 5,651 1,557 21,487 734 1,178 30.................................... 33,558 25,459 4,743 12,779 1,728 36,172500,697 164,883 116,193 6,776 4,921 23,332 813 1,367 1976 Mar. 3.................................... 36,622 21,776 4,694 12,839 2,045 41,878509,771 165,506 118,246 6,010 2,720 24,450 721 1,067 10.................................... 32,778 15,243 4,882 13,320 2,074 41,736505,671 163,394 117,433 5,846 1,774 24,711 679 1,046 17.................................... 36,620 16,636 5,003 12,425 2,125 40,458 505,385 165,583 120,285 5,980 1,926 23,709 678 1,017 24.................................... 32,972 19.469 5,121 12,155 2,077 40,948 500,865 159,824 115,951 6,510 1,141 22,480 628 1,099 31.................................... 37,395 21,129 5,149 14,542 2,087 42,885 510,521 171,055 122,716 6,178 1,049 26,514 772 1,384 Apr. 7.................................... 32,805 18,481 4,780 12,652 2,091 40,873 505,910 164,032 119,286 5,699 1,233 24,262 843 1,122 14.................................... 36,610 22,227 5,276 12,363 2,114 42,862511,975 168,597 124,478 5,933 1,409 22,860 777 1,009 21.................................... 33,787 22,426 5,403 11,384 2,112 41,858 505,239 165,549 121,487 5,732 3,546 21,823 765 939 28.................................... 33,656 21,487 5,522 11,560 2,106 41,982 502,071 162,903 118,226 5,983 2,514 22,039 746 1,277 New York City 1975 Apr. 2.................................... 11,694 7,028 636 4,791 785 12,707 131,328 47,939 28,004 810 143 10,520 581 1,069 9.................................... 11,095 7,701 653 6,357 784 12,812 132,228 47,547 26,575 538 140 11,807 491 1,170 16.................................... 11,810 7,683 659 5,429 796 12,583 132,499 47,856 27,998 757 275 10,973 482 1,067 23.................................... 11,809 6,739 673 4,602 800 12,580 127,788 47,121 26,444 522 265 11,079 436 1,005 30.................................... 12,074 7,118 655 6,313 807 12,673 130,699 49,720 27,867 726 931 12,057 470 1,167 1976 Mar. 3.................................... 13,041 7,231 755 5,535 846 13,802 130,516 48,718 27,331 560 544 11,629 381 847 10.................................... 12,320 4,375 749 6,338 853 13,840 129,971 49,346 27,178 590 284 12,676 338 841 17.................................... 13,553 3,399 753 5,300 853 12,904 127,302 48,960 28,306 577 183 11,449 353 819 24.................................... 12,861 4,591 782 5,386 862 13,458 127,330 47,855 26,999 749 143 11,137 301 884 31.................................... 14,554 4,692 786 7,285 866 14,869 131,299 53,422 29,795 549 120 13,741 436 1,192 Apr. 7.................................... 10,975 5,948 766 5,206 866 13,713 126,502 46,167 26,470 475 101 11,005 476 901 14.................................... 12,781 6,447 747 5,039 866 14,460 128,995 48,307 28,574 516 147 10,713 431 800 21.................................... 10,388 5,602 776 4,377 869 13,923 125,402 46,246 27,604 588 690 9,890 408 727 28.................................... 12,165 6,678 829 4,824 867 13,927 126,522 48,189 27,333 558 453 10,843 405 1,039 Outside New York City 1975 Apr. 2.................................... 21,800 15,284 3,907 6,879 915 22,928 370,891 114,602 90,206 5,670 1,154 11,916 331 212 9.................................... 19,030 14,544 3,846 6,416 948 22,998 368,671 112,285 89,241 5,311 891 11,437 316 203 16.................................... 22,004 17,265 4,033 6,558 902 22,790373,176 116,897 92,090 5,607 2,095 11,613 313 193 23.................................... 18,895 15,026 4,141 6,373 908 22,726362,647 109,598 87,727 5,129 1,292 10,408 298 173 30.................................... 21,484 18,341 4,088 6,466 921 23,499 369,998 115,163 88,326 6,050 3,990 11,275 343 200 1976 Mar. 3.................................... 23,581 14,545 3,939 7,304 1,199 28,076379,255 116,788 90,915 5,450 2,176 12,821 340 220 10.................................... 20,458 10,868 4,133 6,982 1,221 27,896375,700 114,048 90,255 5,256 1,490 12,035 341 205 17.................................... 23,067 13,237 4,250 7,125 1,272 27,554378,083 116,623 91,979 5,403 1,743 12,260 325 198 24.................................... 20,111 14,878 4,339 6,769 1,215 27,490373,535 111,969 88,952 5,761 998 11,343 327 215 31.................................... 22,841 16,437 4,363 7,257 1,221 28,016379,222 117,633 92,921 5,629 929 12,773 336 192 21,830 12,533 4,014 7,446 1,225 27,160379,408 117,865 92,816 5,224 1,132 13,257 367 221 14.................................... 23,829 15,780 4,529 7,324 1,248 28,402382,980 120,290 95,904 5,417 1,262 12,147 346 209 21.................................... 23,399 16,824 4,627 7,007 1,243 27,935 379,837 119,303 93,883 5,144 2,856 11,933 357 212 28.................................... 21,491 14,809 4,693 6,736 1,239 28,055 375,549 114,714 90,893 5,425 2,061 11,196 341 238 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ WEEKLY REPORTING BANKS A21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BAIMKSA-Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Total Fed­ equity eral Other capital IPC funds liabili­ and sub, For­ Certi­ States pur­ ties, notes/ Wednesday eign fied and Do­ chased, etc.9 deben­ com­ and polit­ mes­ For­ etc.8 F.R. tures 10 mer­ offi­ Total 7 ical tic eign Banks Other cial cers’ Sav­ Other sub­ inter­ govts.3 banks checks ings divi­ bank sions Large banks— Total 1975 4,650 7,275 226,979 62,616 117,779 24,477 8,292 11,814 50,834 3,713 23,182 34,970 ...................Apr. 2 4,637 7,075 226,170 62,887 116,678 24,545 8,279 11,822 52,754 3,663 23,441 35,039 .............................. 9 4,709 6,581 225,062 62,648 114,967 25,223 8,455 11,838 53,726 24 3,790 23,392 34,928 ..............................16 4,777 7,164 225,142 62,706 114,739 25,453 8,549 11,780 45,246 1,041 3,632 23,718 34,937 ..............................23 5,097 6,384 224,365 62,774 113,978 25,242 8,479 12,017 47,319 1,384 3,625 23,885 35,236 ..............................30 1976 5,428 6,864 222,340 76,031 106,702 21,894 7,557 8,683 56,757 293 2,929 24,599 37,347 ...................Mar. 3 5,357 6,548 223,572 76,472 107,392 21,784 7,627 8,781 53,241 22 3,334 24.732 37,376 ..............................10 5,193 6,795 223,955 76,947 107,825 21.407 7,690 8,488 50,275 55 3,280 24,969 37,268 ..............................17 4,921 7,094 225,002 77,410 108,482 21.407 7,805 8,333 50,184 303 3,263 24.732 37,557 ..............................24 5,460 6,982 225,981 78,319 108,297 21,476 7,992 8,287 50,371 17 3,453 21,102 38,542 ..............................31 5,163 6,424 224,592 79,074 106,699 21,380 8,150 55,116 27 3,680 19,894 38,569 ...................Apr. 7 5,196 6,935 223,380 78,813 105,818 21,686 7,917 57,058 312 3,725 20,319 38,584 ..............................14 5,138 6,119 222,198 79,183 104,391 21,743 7,903 54,764 142 3,398 20,650 38,538 ..............................21 5,155 6,963 221,601 79,350 104,196 21,636 7,556 54,702 206 3,493 20,481 38,685 ..............................28 New York City 1975 3,387 3,425 50,440 7,017 28,765 1.831 3,927 7,405 13,930 1,442 8,100 9,477 ...................Apr. 2 3,247 3,580 49,969 7,062 28,319 1,805 3, J 7,431 15,176 1,276 8,731 9,529 .............................. 9 3,432 2,872 49,663 7.060 27,824 1,873 3,944 7,534 15,163 1,382 8,937 9,498 ..............................16 3,410 3,960 49,419 7.060 27,708 1,841 3,900 7,482 11,446 295 1,324 8,680 9,503 ..............................24 3,619 2,883 49,087 7,067 27,313 1.832 3,787 7,684 11,585 470 1,266 8,972 9,599 ..............................30 1976 4,185 3,241 43,502 8,770 23,368 1,491 5,799 16,660 215 1,291 9,705 10.425 ...................Mar. 3 3,979 3,460 43,562 8,796 23,453 1,463 5,687 15,254 1,665 9,704 10,440 ..............................10 3,731 3,542 43,629 8,806 23,581 1,467 5,493 12,644 1,641 10,003 10.425 ..............................17 3,633 4,009 43,803 8,887 23,846 1.429 5,363 13,335 250 1 ,664 9,780 10,643 ..............................24 4,124 3,465 43,930 8,962 24,000 1,475 5,191 11,576 1,734 9,664 10,973 ..............................31 3,913 2,826 43,348 9,070 23,609 1,438 3,139 5,072 15,190 1,812 9,026 10,959 ...................Apr. 7 3,870 3,256 42,989 9,039 23,379 1,460 3,035 5.079 15,810 1,814 9,093 10.982 ..............................14 3,814 2,525 42,642 9,131 22,986 1,441 3,021 5.079 14,475 1,577 9,495 10,967 ..............................21 3,835 3,723 42,232 9,147 22,936 1.429 2,992 4,762 14,035 1,686 9,398 10.982 ..............................28 Outside New York City 1975 1,263 3,850 176,539 55,599 89,014 22,646 4,365 4,409 36,904 2,271 15,082 25,493 .................Apr. 2 1,391 3,495 176,201 55,825 88,359 22,740 4,381 4,391 37,578 2,387 14,710 25,510 .............................. 9 1,277 3,709 175,399 55,588 87,143 23,350 4,511 4,304 38,563 24 2,408 14,455 25,430 ..............................16 1,367 3,204 175,723 55,646 87,031 23,612 4,649 4,298 33,800 746 2,308 15,038 25,434 ............................23 1,478 3,501 175,278 55,707 86,665 23,410 4,692 4,333 35,734 914 2,359 14,913 25,637 ............................30 1976 1,243 3,623 178,838 67,261 83,334 20,403 4,393 2,884 40,097 78 1.638 14,894 26,922 .................Mar. 3 1,378 3,088 180,010 67,676 83,939 20,321 4,420 3,094 37,987 22 1,669 15,028 26,936 ............................10 1,462 3,253 180,326 68,141 84,244 19,940 4,440 2,995 37,631 55 1.639 14,966 26,843 .............................17 1,288 3,085 181,199 68,523 84,636 19,978 4,535 2,970 36,849 53 1,599 14,952 26,914 ............................24 1,336 3,517 182,051 69,357 84,297 20,001 4,730 3,096 38,795 17 1,719 11,438 27,569 ............................31 1,250 3,598 181,244 70,004 83,090 19,942 4,557 39,926 27 1,868 10,868 27,610 .................Apr. 7 1,326 3,679 180,391 69,774 82,439 20,226 4,544 41,248 312 1,911 11,226 27,602 ............................14 1,324 3,594 179,556 70,052 81,405 20,302 4,369 40,289 142 1,821 11,155 27,571 ............................21 1,320 3,240 179,369 70,203 81,260 20,207 4,309 40,667 206 1,807 11,083 27,703 ............................28 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 □ MAY 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BAN KSA—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD’s All other large Total included in time time deposits14 Gross Wednesday Total loans De­ and savings deposits13 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 justedn (gross) justed 12 Issued Issued Issued Issued profit cor­ mental other16 their ad- Total to to Total to to orga­ pora­ units foreign justedn IPC’s others IPC’s others niza­ tions for branches tions profit15 Large banks— Total 1975 Apr. 2.......................... 289,511 372,956 105,314 87,460 59,123 28,337 36,082 19,568 16,514 62,610 1,951 9.......................... 289,369 374,363 105,432 86,601 58,230 28,371 35,882 19,324 16,558 62,888 2,834 16.......................... 288,698 373,875 105,983 85,323 56,748 28,575 36,155 19,009 17,146 62,645 2,738 23.......................... 286,109 369,392 102,971 85,085 56,541 28,544 36,339 18,952 17,387 62,704 2,175 3 0 286,530370,058 103,072 84,279 55,677 28,602 36,275 18,805 17,470 62,772 2,672 1976 Mar. 3.......................... 276,972370,775 101,714 70,655 46,450 24,205 30,348 16,138 14,210 72,880 2,247 816 3,619 10.......................... 281,801 375,798 104,131 71,587 47,059 24,528 30,150 16,063 14,087 73,203 2,345 833 91 3,375 17.......................... 278,888374,204 103,328 71,650 47,240 24,410 29,724 15,938 13,786 73,581 2,384 904 76 4,478 24. . ...................... 276,885 371,859 103,231 72,375 47,969 24,406 29,451 15,748 13,703 73,927 2,474 909 99 3,914 3 1 277,400369,800 106,097 72,414 48,045 24,369 29,404 15,304 14,100 74,779 2,507 926 110 3,151 Apr. 7.......................... 279,606374,217 105,732 70,565 46,732 23,833 29,179 15,107 14,072 75,381 2,603 968 120 2,942 14.......................... 277,657 372,343 107,718 69,317 45,944 23,373 29,380 14,907 14,473 75,127 2,627 930 131 2,475 21.......................... 276,664371,989 106,393 67,882 44,433 23,449 29,061 14,799 14,262 75,284 2,698 1,092 108 3,323 28.......................... 275,321 368,266 104,694 67,200 44,198 23,002 28,900 14,758 14,142 75,402 2,769 1,062 113 3,621 New York City 1975 Apr. 2.......................... 75,111 89,722 25,582 30,767 20,088 10,679 8,980 5,405 3.575 7,017 1,151 9.......................... 74,639 89,699 24,505 30,442 19,776 10,666 8,938 5,363 3.575 7.061 2,086 16.......................... 74,314 89,191 24,798 30,155 19,332 10,823 8,849 5,256 3.593 7.061 1,803 2 3 72,915 86,784 23,968 29,983 19,275 10,708 8,749 5,16$ 3,581 7,060 1,341 3 0 73,424 86,959 24,658 29,718 18,822 10,896 8,729 5,135 3.594 7,067 1,642 1976 Mar. 3.......................... 71,091 87,434 23,504 24,520 15,419 9,101 6,513 4,285 2,228 8,314 175 216 2,682 10.......................... 73,322 89,534 24,066 24,608 15,552 9,056 6,464 4,241 2,223 8,325 185 222 2,584 17.......................... 72,047 88,232 23,775 24,543 15,599 8,944 6,519 4,260 2,259 8,356 191 206 3,539 2 4 70,990 87,158 23,714 24,805 15,946 8,859 6,330 4,183 2,147 8,405 193 211 3,141 3 1 70,407 86,665 25,007 24,834 16,094 8,740 6,316 4,152 2,164 8,503 204 183 2,247 Apr. 7.......................... 70,294 87,482 24,086 24,121 15,676 8,445 6,260 4,103 2,157 8,596 214 180 2,276 14.......................... 69,743 86,178 24,666 23,930 15,545 8,385 6,154 4,027 2,127 8,557 226 181 1,965 21.......................... 69,918 86,908 25,278 23,604 15,198 8,406 6,033 3,977 2,056 8,579 240 244 2,343 28.......................... 68,618 85,399 24,728 23,269 15,156 8,113 5,971 3,998 1,973 8,575 248 242 1,835 Outside New York City 1975 Apr. 2.......................... 214,400283,234 79,732 56,693 39,035 17,658 27,102 14,163 12,939 55,593 800 9.......................... 214,730284,664 80,927 56,159 38,454 17.705 26,944 13,961 12,983 55,827 748 16.......................... 214,384284,684 81,185 55,168 37,416 17,752 27,306 13,753 13,553 55,584 935 2 3 213,194282,608 79,003 55,102 37,266 17,836 27,590 13,784 13,806 55,644 834 3 0 213,106283,099 78,414 54,561 36,855 17.706 27,546 13,670 13,876 55,705 1 ,Q30 1976 Mar. 3.......................... 205,881 283,341 78,210 46,135 31,031 15,104 23,835 11,853 11,982 64,566 2,072 600 937 10.......................... 208,479286,264 80,065 46,979 31,507 15,472 23,686 11,822 11,864 64,878 2,160 611 791 17.......................... 206,841 285,972 79,553 47,107 31,641 15,466 23,205 11,678 11,527 65,225 2,193 698 939 2 4 205,895284,701 79,517 47,570 32,023 15,547 23,121 11,565 11,556 65,522 2,281 698 773 3 1 206,993 283,135 81,090 47,580 31,951 15,629 23,088 11,152 11,936 66,276 2,303 743 904 Apr. 7.......................... 209,312 286,735 81,646 46,444 31,056 15,388 22,919 11,004 11,915 66,785 2,389 788 666 14.......................... 207,914 286,165 83,052 45,387 30,399 14,988 23,226 10,880 12,346 66,570 2,401 749 510 21.......................... 206,746 285,081 81,115 44,278 29,235 15,043 23,028 10,822 12,206 66,705 2,458 848 980 28.......................... 206,7031282,867 79,966 43,931 29,042 14,889 22,929 10,760 12,169 66,827 2,52| 820 1,786 A See p. A-18. 11 Exclusive of loans and Federal funds transactions with domestic 1 Loan loss reserve and unearned income on loans had been reported commercial banks. as liability items through Mar. 24, 1976. Since then the item is netted 12 All demand deposits except U.S. Govt, and domestic commercial against total loans, and therefore against total assets also. As a proxy for banks, less cash items in process of collection. this item prior to Mar. 31, 1976, reserves for loans have been used to 13 Certificates of deposit issued in denominations of $100,000 or more. calculate year-ago figures. 14 All other time deposits issued in denominations of $100,000 or more 2 Includes securities purchased under agreements to resell. (not included in large negotiable CD’s). 3 Includes official institutions and so forth. 15 Other than commercial banks. 4 Includes short-term notes and bills. 16 Domestic and foreign commercial banks, and official international 5 Federal agencies only. organizations. 6 Includes corporate stocks. 7 Includes U.S. Govt, and foreign bank deposits, not shown separately. Note.—Effective Mar. 24, 1976, reclassification of loans in Chicago 8 Includes securities sold under agreements to repurchase. resulted in the following major revisions: commercial and industrial, 9 Includes minority interest in consolidated subsidiaries. Beginning — $675 million; other nonbank financial institutions, 4 5185 million; Digitized for FRASMEaRr. 31, 1976, also includes deferred tax portion of reserves for loans. real estate, +$580 million. These reclassifications are not reflected in 10 Includes reserves for securities. Beginning Mar. 31, 1976, also data prior to Mar. 24, 1976. http://fraser.stlouisinfecldu.doersg c/o ntingency portion of reserves for loans. Federal Reserve Bank of St. Louis

MAY 1976 □ BUSINESS LOANS OF BANKS A23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1976 1976 1976 1975 1975 Industry Apr. Apr. Apr. Apr. Mar. 2nd 1st 28 21 14 7 31 Apr. Mar. Feb. I IV III half half Durable goods manufacturing: Primary metals.................................... 2,061 2,020 2,040 2,047 2,025 36 -28 14 -48 62 -12 50 18 Machinery............................................ 5,257 5,396 5,407 5,456 5,458 -201 -18 -79 -301 -781 -887 -1,668 -1,314 Transportation equipment................ 2,795 2,790 2,806 2,867 2,993 -198 -80 -100 -52 -267 -198 -465 -302 Other fabricated metal products... 1 ,870 1,868 1,896 1,884 1,886 -16 -137 13 -87 -473 -277 -750 -188 Other durable goods.......................... 3,513 3,480 3,521 3,486 3,505 8 -67 -29 52 -514 -174 -688 -718 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,160 3,228 3,196 3,201 3,271 -111 -261 3 -509 455 13 468 -1,609 Textiles, apparel, and leather........... 3,098 3,113 3,055 3,062 2,999 99 98 212 308 -477 -55 -532 -287 Petroleum refining.............................. 2,341 2,338 2,333 2,303 2,224 117 -189 52 -138 -234 118 -116 228 Chemicals and rubber....................... 2,605 2,661 2,652 2,628 2,651 -46 -39 95 -40 -178 -253 -431 -260 Other nondurable goods................... 1,938 1,932 1,880 1,859 1,874 64 -37 17 66 -268 -147 -415 -283 Mining, including crude petroleum and natural gas................................ 6,480 6, All 6,440 6,420 6,401 79 206 205 448 789 276 1,065 -149 Trade: Commodity dealers................... 1 ,546 1 ,587 1,550 1,598 1,646 -100 61 -23 64 340 137 All -972 Other wholesale......................... 5,814 5,762 5,747 5,792 5,786 28 334 21 347 -103 -78 -181 -1,108 Retail............................................ 5,998 5,967 5,927 5,877 5,918 80 169 6 126 -208 -309 -517 '-398 Transportation........................................ 5,831 5,827 5,819 5,803 5,837 -6 -97 -9 -231 127 -124 3 -321 Communication...................................... 1 ,658 1,688 1,660 1,695 1,695 -37 -128 -30 -289 -49 -109 -158 -357 Other public utilities.............................. 5,939 5,958 5,889 5,977 6,113 -174 -381 -199 -884 33 -231 -198 -1,423 Construction............................................ 4,339 4,372 4,380 4,359 4,424 -85 -435 ^ — 103 -701 -381 -55 -436 -622 Services..................................................... 10,793 10,753 10,813 10,892 10,938 -145 282 — 71 119 285 -300 -15 -1,120 All other domestic loans....................... 7,758 7,842 7,929 8,090 8,104 -346 -807 r —801 -2,299 628 15 643 -372 Bankers acceptances............................... 3,108 3,056 3,148 3,191 3,302 -194 -166 -211 -1,643 2,855 -170 2,685 599 Foreign commercial and industrial loans................................................... 5,604 5,601 5,522 5,470 5,370 234 77 -116 82 222 535 757 294 Total classified loans.............................. 93,506 93,716 93,610 93,957 94,420 -914 -1,643 r —1,133 -5,610 1,863 -2,285 -422 -10,664 Comm, paper included in total clas­ sified loans1...................................... 490 444 46 24 28 7 153 44 197 240 Total commercial and industrial loans of large commercial banks........... 113,308 113,573 113,559 113,918 114,556 -1,248 -1,464 r — 948 -6,098 1,680 -2,622 -942 -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 1976 1975 Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. 2nd 28 31 25 28 31 26 29 24 27 I IV III II half- Durable goods manufactur­ ing: 1,283 1,290 1,335 1,341 1.372 1,381 1,320 1,338 1,286 -82 34 50 4 84 Machinery............................ 3,055 3,139 3,072 3,117 3^313 3,451 3,538 3,737 3,825 -174 -424 -240 -94 -664 Transportation equipment. 1,632 1,691 1,643 1,686 1,615 1,727 1,624 1,693 1,722 76 -78 -47 68 -125 Other fabricated metal products............................ 919 909 1,035 1,041 1,024 1,087 1,175 1,268 1,228 -115 -244 46 -90 -198 Other durable goods.......... 1,871 1,793 1,838 1,874 1,823 1,905 1,950 2,012 2,042 -30 -189 -78 -161 -267 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,366 1,391 1,536 1,547 1,578 1,544 1,451 1,471 1,461 -187 107 -43 -47 64 Textiles, apparel, and leather................................ 1,044 993 1,055 1,032 995 1,072 1,074 1,103 1,077 -2 -108 8 -63 -100 Petroleum refining............... 1,785 1,685 1,886 1,859 1,831 1,860 1,914 1,967 1,889 -146 -136 258 226 122 Chemicals and rubber........ 1,495 1,540 1,603 1,588 1,622 1,549 1,605 1,665 1,645 -82 -43 -97 -84 -140 Other nondurable goods.. 979 962 942 925 888 955 995 1,056 1,023 74 -168 -87 13 -255 Mining, including crude pe­ troleum and natural gas. 5,015 4,904 4,731 4,528 4,484 3,867 3,896 3,847 3,754 420 637 113 197 750 Trade: Commodity dealers.. 180 190 182 196 172 168 162 150 148 18 22 2 -2 24 Other wholesale......... 1,312 1,344 1,279 1,290 1,276 1,308 1,403 1,319 1,371 68 -43 -10 -121 -53 Retail........................... 2,036 2,007 1,987 2,007 1,996 2,115 2,150 2,153 2,139 11 -157 17 -147 -140 Transportation......................... 4,252 4,250 4,329 4,291 4,390 4,324 4,420 4,391 4,405 -HO -1 -34 -99 -35 Communication....................... 984 998 1,095 1,101 1,081 1,112 1,122 1,132 1,149 -83 -51 -1 -2 -52 Other public utilities............... 3,770 3,898 3,940 3,995 3,979 3,942 4,027 3,966 3,902 -81 13 -79 11 -66 Construction............................ 1,877 1,917 2,141 2,258 2,181 2,207 2,267 2,359 2,367 -264 -178 45 117 -133 Services...................................... 5,310 5,368 5,147 5,038 5,135 5,082 5,097 5,122 5,010 233 13 -18 -290 -5 All other domestic loans .... 2,513 2,697 3,093 3,396 3,299 3,116 3,054 3,244 3,257 -602 55 -14 176 41 Foreign commercial and in­ dustrial loans................... 3,085 2,984 3,001 2,999 2,921 2,851 2,834 2,763 2,695 63 158 169 66 327 Total loans................................ 45,763 45,950 46,870 47,109 46,975 46,623 47,078 47,756 47,395 -1,025 -781 -40 -322 -821 1 Reported the last Wednesday of each month. Commercial and industrial “term” loans are all outstanding loans with Note.—For description of series see article “Revised Series on Com- an original maturity of more than 1 year and all outstanding loans granted mercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 DEMAND DEPOSIT OWNERSHIP □ MAY 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holde r 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- 17.3 92.7 53.6 1.3 10.3 175.1 1971- 18.5 98.4 58.6 1.3 10.7 187.5 1972- 18.9 109.9 65.4 1.5 12.3 208.0 1973- 18.6 102.8 65.1 1.7 11.8 200.0 18.6 106.6 67.3 2.0 11.8 206.3 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- 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 19.0 118.8 73.3 2.3 11 .7 225.0 1975- 18.6 111.3 73.2 2.3 10.9 216.3 19.4 115.1 74.8 2.3 10.6 222.2 19.0 118.7 76.5 2.2 10.6 227.0 20.1 125.1 78.0 2.4 11.3 236.9 Weekly reporting banks: 1971- 14.4 64.4 27.1 1.4 6.6 114.3 1972- 14.7 66.2 28.0 2.2 6.8 118.1 1973- 14.9 66.9 29.0 2.2 6.8 119.7 1974- 14.8 63.1 27.9 2.3 6.2 113.9 1975- 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 14.4 64.6 29.1 2.0 5.9 116.1 14.7 65.5 29.6 2.1 6.2 118.1 15.1 66.7 29.0 2.2 6.3 119.3 15.4 68.1 29.4 2.2 6.4 121.6 15.6 69.9 29.9 2.3 6.6 124.4 1976- 15.2 68.0 30.3 2.2 6.7 122.4 15.3 65.6 29.2 2.2 6.4 119.0 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, 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 * 294 206 186 183 State member........................... 64 39 36 35 All nonmember......... 155 115 79 66 All member.................................. 352 275 260 257 Insured .................... 152 112 76 66 Noninsured............. 3 3 3 1 Beginning Nov. 9, 1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on p. A-l 4; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-18-A-22 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for “Time de­ posits” and “Loans” for call dates as shown on pp. A-l 4-A-l 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 institutions! Bytype of loaii Date Total Commercial Real All and estate other industrial 1976—Jan. 7........................... 4,424 2,618 205 1,601 14........................... 4,369 2,617 205 1,547 21........................... 4,355 2,598 205 1,552 28........................... 4,292 2,522 208 1,562 Feb. 4........................... 4,313 2,560 208 1,545 11........................... 4,455 2,710 208 1,537 18........................... 4,441 2,719 205 1,517 25........................... 4,478 2,725 200 1,553 Mar. 3........................... 4,482 2,731 201 1,550 10........................... 4,390 2,653 197 1,540 1 To bank’s own foreign branches, nonconsolidated non­ 17........................... 4,348 2,604 200 1,544 bank affiliates of the bank, the bank’s holding company (if 24........................... 4,239 2,531 201 1,507 not a bank), and nonconsolidated nonbank subsidiaries of 31........................... '4,234 '2,552 197 1,485 the holding company. Apr. 7........................... 4,050 2,459 195 1,396 Note.—Series changed on Aug. 28, 1974. For a comparison 14........................... 4,082 2,480 197 1 ,405 of the old and new data for that date, see p. 741 of the Oct. 21........................... 4,121 2,531 194 1 ,396 1974 Bulletin. Revised figures received since Oct. 1974 28........................... 4,180 2,564 199 1,417 that affect that comparison are shown in note 2 to this table 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 cotrmanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed3 placed Total Own Bills Own eign United United bills bought acct. corr.6 States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970............ 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............ 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972............ 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973............. 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974............ 49,144 4,611 31,839 12,694 1,814 6,518 18,484 4,226 3,685 542 999 1,109 12,150 4,023 4,067 10,394 1975-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 '12,822 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.. '48,257 5,574 '30,496 12,187 '1,482 '7,316 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 9,693 Oct.. . '50,394 6,360 '32,308 11,726 '1,634 '7,114 17,304 '5,213 4,288 924 1,047 284 10,760 3,467 3,947 9,890 Nov.. '49,512 6,389 '32,003 11,120 '1,715 '6,974 17,875 6,497 5,684 813 727 279 10,372 3,545 3,888 10,443 Dec. . '47,690 6,239 '31,276 10,175 '1,762 '6,892 18,727 7,333 5,899 1,435 1,126 293 9,975 3,726 4,001 11,000 1976—Jan.. '48,858 6,072 '31,305 11,481 '1,657 '6,918 18,677 6,294 5,367 927 1,230 248 10,904 3.891 3,906 10,880 Feb.. 49,927 6,401 31,534 11,992 1,567 6,753 19,060 5,950 5,255 695 1,051 231 11,827 3,977 4,039 11,044 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 □ MAY 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 . 714 1975-—Jan. 10.05 19 10% 15 10 28 71/2 Feb. 8.96 25 101/2 20 934 Mar. 7.93 28. 91/2 Aug. 12.. 734 Apr. 7.50 May 2 10% May 7.40 6 11 Feb. 3., 9% Sept. 15.. 8 June 7.07 10 11 Va 10 9 July 7.15 17 11 Vi 18 834 Oct. 27 734 Aug. 7.66 24 81/2 Sept. 7.88 June 26 11% Nov. 5 71/2 Oct. 7.96 Mar. 5, 81/4 Nov. 7.53 July 5 12 10 8 Dec. 2 IVa Dec. 7.26 18, 734 Oct. 7 11% 24 71/2 1976—Jan. 12, , 7 1976-—Jan. 7.00 21 11 Vi 21.. 634 Feb. 6.75 28 11% May 20, , 71/4 Mar. 6.75 April 6.75 Nov. 4 11 June 9.. 7 14 10% 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 Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1976 1975 1976 1975 1976 1975 1976 1975 1976 1975 1976 1975 Short-term 35 centers......................................... 7.54 8.29 9.03 9.56 8.44 9.15 7.80 8.62 7.55 8.38 7.33 8.04 New York City.......................... 7.14 7.99 8.64 9.34 8.20 8.98 7.52 8.52 7.40 8.17 7.03 7.87 7 Other Northeast..................... 7.93 8.53 9.46 10.01 8.69 9.36 8.06 8.83 7.77 8.61 7.71 8.15 7.50 8.15 8.51 9.13 8.21 8.97 7.63 8.51 7.50 8.27 7.37 7.91 7 Southeast.................................. 7.86 8.70 9.44 9.68 8.78 9.39 8.16 8.74 7.62 8.62 7.29 8.36 8 Southwest................................. 7.56 8.37 8.76 9.38 8.16 8.94 7.57 8.44 7.44 8.18 7.35 8.15 4 West Coast.............................. 7.77 8.67 9.17 9.73 8.60 9.29 8.06 8.77 7.70 8.76 7.61 8.56 Revolving credit 35 centers......................................... 7.50 8.26 9.50 9.93 8.40 9.15 7.79 8.59 7.74 8.41 7.42 8.20 New York City.......................... 7.51 8.08 8.56 9.01 8.31 8.90 7.68 8.54 7.46 8.44 7.50 8.03 8.06 8.63 10.66 10.38 7.57 8.91 7.47 8.09 7.80 8.19 8.16 8.72 8 North Central......................... 7.64 8.62 9.88 10.11 9.23 9.57 8.34 9.34 7.46 8.65 7.53 8.49 7 Southeast.................................. 7.49 9.50 9.59 10.12 9.02 9.53 8.09 8.74 8.43 8.30 6.75 10.12 8 Southwest................................. 7.73 8.51 8.81 9.18 8.14 9.15 7.89 8.62 8.02 8.49 7.49 8.42 4 West Coast.............................. 7.32 8.15 8.69 9.71 8.15 8.99 7.59 8.34 7.87 8.32 7.20 8.09 Long-term 35 centers......................................... 8.02 8.88 9.44 9.76 8.96 9.18 8.40 9.11 8.26 9.16 7.89 8.79 New York City.......................... 7.68 8.44 7.43 7.37 8.08 9.09 8.01 9.13 7.25 9.46 7.68 8.32 7 Other Northeast..................... 8.16 9.10 9.36 9.84 9.32 9.39 8.38 9.02 8.10 8.02 7.98 9.33 8 North Central......................... 7.96 9.03 9.23 9.71 8.56 8.55 8.35 8.94 7.90 9.90 7.86 8.97 7 Southeast.................................. 8.90 8.87 9.69 7.82 9.69 8.84 9.20 9.06 7.97 9.36 8.57 8.54 8 Southwest................................. 8.14 8.88 10.65 11.60 8.69 9.44 8.10 9.39 8.79 8.97 7.84 8.65 4 West Coast.............................. 8.46 9.27 8.63 9.90 9.33 9.90 8.85 9.32 9.12 9.49 8.28 9.21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Market 1-year issues7 days months months 2 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—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 Mar.. 5.25 5.37 5.27 5.18 4.84 5.047 5.00 5.488 5.44 5.82 6.12 7.25 Apr.. 5.08 5.23 5.13 5.03 4.82 4.878 4.86 5.201 5.18 5.54 5.85 6.99 Week ending— 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 Mar. 6.. 5.25 5.38 5.23 5.26 4.95 5.258 5.20 5.724 5.65 5.98 6.30 7.36 13.. 5.25 5.38 5.28 5.21 4.86 5.060 4.99 5.487 5.47 5.86 6.19 7.30 20.. 5.35 5.45 5.38 5.19 4.77 4.981 4.98 5.459 5.43 5.82 6.13 7.25 27.. 5.23 5.35 5.28 5.12 4.79 4.890 4.87 5.283 5.26 5.67 5.93 7.14 Apr. 3. 5.15 5.30 5.13 5.10 4.84 4.929 4.97 5.327 5.34 5.76 6.03 7.14 10. 5.18 5.38 5.18 5.05 4.73 4.957 4.91 5.293 5.22 5.59 5.94 7.04 17. 5.09 5.19 5.09 5.01 4.77 4.830 4.80 5.068 5.04 5.36 5.66 6.88 24. 5.00 5.13 5.13 4.94 4.78 4.763 4.78 5.089 5.11 5.47 5.76 6.92 May 1. 5.03 5.23 5.13 5.03 4.93 4.909 4.88 5.230 5.24 5.61 5.90 7.04 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 □ MAY 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 i States (long­ Re­ Indus­ Rail­ Public term) Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11 .60 197 5 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—Ap r 7.03 6.95 6.46 7.43 9.67 9.65 9.49 8.95 10.34 9.30 9.39 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 r8.29 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 r9.12 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 S.6l' 1976—Ja............n 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 Mar........ 6.87 6.90 5.99 7.72 8.62 8.61 9.18 8.52 9.99 9.10 9.16 9.43 8.07 3.65 Apr......... 6.73 6.61 5.68 7.50 8.48 8.52 9.04 8.40 9.83 8.98 9.05 9.27 8.04 3.66 Week ending— 1976—Mar. 6. 6.96 6.99 6.10 7.79 8.72 8.72 9.20 10.04 9.12 9.19 9.46 8.00 3.71 13. 6.91 6.94 6.05 7.75 8.63 8.64 9.20 10.01 9.12 9.17 9.46 8.06 3.67 20. 6.89 6.91 6.01 7.74 8.61 8.60 9.18 9.98 9.11 9.16 9.44 8.10 3.68 27. 6.80 6.74 5.81 7.60 8.53 8.50 9.16 9.97 9.07 9.16 9.40 8.03 3.59 Apr. 3. 6.78 6.70 5.77 7.56 8.60 8.54 9.10 9.92 9.04 9.11 9.34 8.14 3.61 10. 6.72 6.67 5.74 7.53 8.50 9.08 9.90 9.01 9.09 9.31 8.14 3.64 17. 6.65 6.56 5.63 7.47 8.42 8.44 9.03 9.85 8.97 9.07 9.27 8.07 3.71 24. 6.70 6.56 5.63 7.47 8.38 8.54 9.01 9.81 8.95 9.02 9.24 8.01 3.61 May 1. 6.80 6.57 5.63 7.47 8.58 8.57 9.01 9.76 8.95 8.99 9.23 7.95 3.67 Number of issues2.. . 121 20 30 41 30 14 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors Service. (3) Corporate, rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System; and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings/price ratios as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of nondata. callable issues—12 industrial and 2 public utility. Common stock ratios Bonds: Monthly and weekly yields are computed as follows: (1) U.S. on the 500 stocks in the price index. Quarterly earnings are seasonally Govt., averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more; from Federal Reserve Bank of New York. (2) State and local NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Stock Market Customer Financing: Note.—Annual data are averages of daily or weekly figures. Monthly 1 Margin credit includes all credit extended to purchase or carry stocks and weekly data are averages of daily figures unless otherwise noted and are or related equity instruments and secured at least in part by stock (Dec. computed as follows: U.S. Govt, bonds, derived from average market 1970 Bulletin, p. 920). Credit extended by brokers is end-of-month data yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year for member firms of the New York Stock Exchange. June data for banks bond. Municipal and corporate bonds, derived from average yields as are universe totals; all other data for banks represent estimates for all computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- commercial banks based on reports by a reporting sample, which ac­ year bond; Wed. closing prices. Common stocks, derived from com­ counted for 60 per cent of security credit outstanding at banks on June 30, ponent common stock prices. Average daily volume of trading, presently 1971. conducted 5 days per week for 6 hours per day. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of over the counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ SECURITY MARKETS A29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (Der cent of oar) 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 v S g t . ) . ­ l S 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 o r i a r o n t n a s ­ ­ Utility na F n i c ­ e 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 37.13 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-—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 32.38 32.78 52.20 90.57 21,286 2,743 July................. 58.09 68.5 56.6 92.49 103.84 38.04 43.67 49.54 54.96 32.90 32.98 52.51 93.28 20,076 2,750 ................ 56.84 68.3 55.6 85.71 96.21 35.1A3ug41.04 45.71 50.71 30.08 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 32.09 32.99 45.10 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 Mar................ 58.23 69.2 57.3 101.08 113.73 44.54 45.67 54.01 61.60 39.19 35.44 52.59 104.04 23,069 3,479 A nr................. 59.33 71.3 58.2 101.93 114.67 44.91 46.07 54.28 60.62 38.66 35.69 52.71 103.00 18,770 2,368 Week ending— 1976--Apr. 3......... 58.91 70.6 57.9 102.34 115.16 45.10 46.08 54.59 60.98 38.98 35.71 53.49 104.15 17,756 2,702 10 . . 59.42 70.6 58.0 102.14 114.93 44.79 41.14 54.44 60.79 38.74 35.67 53.46 103.80 21,242 2,814 17 . 59.95 71.5 58.7 100.56 113.11 43.74 45.72 53.49 59.72 37.52 35.33 52.05 101.71 16,390 2,073 24........ 59.55 71.6 58.6 102.58 115.43 45.36 46.18 54.61 61.04 38.96 35.77 53.84 103.04 20,764 2,368 May 1........ 58.76 71.4 57.6 102.14 114.77 45.52 46.13 54.38 60.65 39.66 35.91 52.02 102.93 16,268 1,944 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1975—Mar....................................... 5,164 4,320 844 4,180 800 134 30 6 14 1,882 515 1,770 Apr........................................ 5,327 4,503 824 4,360 781 138 30 5 13 1,885 505 1,790 May...................................... 5,666 4,847 819 4,700 779 140 27 7 13 1,883 520 1 ,705 June...................................... 5,984 5,140 844 4,990 805 146 28 4 11 2,434 520 1,790 July....................................... 6,266 5,446 820 5,300 780 143 29 3 10 2,387 555 1,710 Aug....................................... 6,197 5,365 832 5,220 791 142 30 3 11 2,457 515 1,500 Sept....................................... 6,251 5,399 852 5,250 811 145 30 4 10 2,520 470 1,455 Oct......................................... 6,455 5,448 1,007 5,300 956 144 36 4 15 2,311 545 1,495 Nov....................................... 6,527 5,519 1,008 5,370 958 146 37 3 13 2,270 490 1,470 Dec........................................ 6,500 5,540 960 5,390 909 147 36 3 15 2,281 475 1,525 1976—Jan......................................... 6,568 5,568 1,000 5,420 946 146 34 2 20 2,321 655 1,975 Feb........................................ 7,152 6,115 1,037 5,950 984 162 34 3 20 2,333 685 2,065 Mar....................................... 6,410 650 1,935 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ MAY 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 E p n er d i o o d f l ( d d i m o o e o n b f i l l ­ s t ­ 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 N a e t e d u t i s t 60 o r p e m in r o c d r e e e n b t i t 6 s L 0 t e a p s t s e u r s t h c a e n n tof ( b m d T a o i l o l a l l t l n i a a o c l r n e s s ) lars) 1 1975—Feb......................... 42.2 40.1 17.8 7,303 1975—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 Apr......................... 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 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 Aug......................... 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 Nov........................ 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 10.3 7,774 1976—Jan... 5,420 7.0 9.4 18.3 21.3 28.8 15.5 Feb......................... 44.4 44.7 10.9 8,038 Feb.. 5,950 6.8 8.9 17.4 29.0 22.6 15.3 Note.—Special miscellaneous accounts contain credit balances that 1 Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n c a a d 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 it p s os­ l O ia t t i b h e i s e li r ­ G r c e o e a s n u e c e n r ­ r v t a s e l classi ( f i i n e d m b o y n t m 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 1975................ 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 1975—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.r . 77,221 4,023 4,740 1,545 27,992 2,330 3,205 121,056 109,873 2,755 8,428 896 301 203 403 1,803 1976—Jan... . 77,308 4,839 4,918 1 ,581 28,473 1,961 3,245 122,325 110,979 2,892 8,455 923 315 195 426 1,859 Feb.p. . 77,413 5,243 5,211 1,765 29,035 1,853 3,301 123,821 112,019 3,275 8,527 930 352 184 401 1,867 1 Also includes securities of foreign governments and international tion-reserves basis. The data differ somewhat from balance sheet data organizations and nonguaranteed issues of U.S. Govt, agencies. previously reported by National Assn. of Mutual Savings Bank, which 2 Commitments outstanding of banks in New York State as reported to were net of valuation reserves. For most items, however, the differences the Savings Banks Assn. of the State of New York. Data include building are relatively small. loans. 3 Balance sheet data beginning 1972 are reported on a gross-of-valua- Note.—NAMSB estimates for all savings banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 o SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks gages estate loans assets 1971. 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 1974' 263,349 11,965 4,437 3,667 3,861 118,572 96,652 21,920 86,234 8,331 22,862 15,385 1975. 289,084 14,582 5,894 4,440 4,248 135,014 106,755 28,259 89,358 9,634 24,389 16,107 1975—-Jan.r................................... 266,331 12,118 4,517 3,670 3,931 121,526 98,286 23,240 86,533 8,395 23,012 14,747 Feb.'.................................. 269,379 12,230 4,595 3,685 3,950 123,638 98,945 24,693 86,959 8,499 23,177 14,876 Mar. r.................................. 271,639 12,364 4,695 3,696 3,973 124,934 99,371 25,563 87,246 8,668 23,326 15,101 Apr...................................... 273,523 12,374 4,608 3,719 4,047 126,256 99,725 26,531 87,638 8,782 23,459 15,014 May.................................... 275,816 12,464 4,678 3,739 4,047 127,847 100,478 27,369 87,882 8,843 23,570 15,210 June.................................... 278,343 12,560 4,738 3,762 4,060 129,838 101,238 28,600 88,035 8,989 23,675 15,246 July..................................... 279,354 12,814 4,843 3,902 4,069 130,298 102,675 27,623 88,162 9,058 23,794 15,228 Aug..................................... 280,482 13,022 4,895 4,039 4,088 130,659 103,496 27,163 88,327 9,112 23,919 15,443 Sept..................................... 281,847 13,150 4,914 4,122 4,114 131,524 104,529 26,995 88,445 9,210 24,048 15,470 284,829 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 1976—Jan...................................... 293,870 15,380 6,446 4,652 4,282 138,965 108,130 30,835 89,395 9,661 24,498 15,971 Feb.*.................................. 296,479 16,142 6,458 4,790 4,894 140,332 109,321 31,011 89,543 9,726 24,633 16,103 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ End of period M ga o g r e t s ­ I s i m n e t v i c e e u e n s s r t t 1 ­ ­ Cash Other l a ia s T b s o e il t t i a s t — i l e s S c a a v p i i n ta g l s w N or e t t h2 m r B o o w o n r e e ­ d y3 p L r o o i a n ce n s s s Other ou m a p t t s i e t t e r m a n i n d o e d n d i o t 4 n s f g 1971..................................... 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972..................................... 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735................................... 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974..................................... 249,293 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—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 Feb.......................... 282,487 36,128 30,251 348,866 295,364 20,162 18,758 5,134 9,448 12,878 Mar.*..................... 286,575 36,704 30,483 353,762 302,465 20,212 18,234 5,379 7,472 14,441 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 □ MAY 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 accounts Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net 2 ties ties notes1 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 -2,077 197 5 280,997 324,601 -43,604 58,953 -1,069 8,112 -1 ,081 50,853 -1,570 1,890 -6,920 Half year: 1974—Jan.-June 140,676 138,030 2,646 5,162 426 8,297 295 -3,005 -1,215 1,208 352 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—Mar.r... . 20,040 28,311 -8,272 9,949 5-1,216 -82 11,252 3,115 -1,182 -1,047 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 -5,091 7,757 -2 -393 328 7,820 3,532 114 918 Feb........... 20,845 29,833 -8,987 9,465 5 1,062 -564 8,972 64 -125 -46 Mar.......... 20,431 29,054 -8,623 6,620 -6 -623 -83 7,320 -4,032 -288 -3,018 Selected balances Treasury operating balance Borrowing from the public. Memo: p E e o r n i f o d d B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h 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 se A c g u e r n it c i y es Sp G I e n c o v i v a e t l s L , t m e a s c e s c : n o t u s n o ts f S n L p o e e t s c e s i s a : 1 l E T q o u t a a l l s: s c p p D o G o r N r e i n o p v b o s v a s t o w t . t r — . o e - e 4 f d issues Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,634 139 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—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—Jan.. . . 10,075 1,905 7 11,987 584,405 10,902 117,901 23,333 454,072 79,355 Feb.... 10,366 1,678 7 1,205 593,871 10,907 118,963 22,770 463,045 78,359 Mar.. . 7,144 868 7 8,019 600,490 10,901 118,340 22,686 470,365 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

MAY 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 i 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 94,73734,926 2,76044,088 2,032 4,357 3,437 53,914 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 3,921 264,932 112,092 2830,81223,952 118,95241,744 31,917245....6..2..,.8..7...8......3..,.0..08 6,837 4,051 76,780 16,844 3,334 5,035 5,369 1975......................... 280,997 122,071 3234,29634,013 122,38645,747 5,125 71,789 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 2,016 34,418 254 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 2,279 46,667 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—Mar............ '20,040 *•9,617 8 2,661 8,152 4,134 7,228 649 6,268 208 21 r370 *•6,867 1,160 295 356 *•648 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 June............ 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 ,514 313 503 757 Aug............. 23,584 10,246 ..........1 I 488 331 10,403 1,045 425 8,085 1,257 372 9,713 1,394 302 430 723 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 1976—Jan.............. 25,634 9,518 1 5,843 86 15,276 1,771 218 5,540 225 223 442 6,430 1,335 348 401 292 Feb.............. 20,845 10,938 7 933 4,100 7,778 1,203 422 8,330 237 693 370 9,631 1 ,354 288 475 538 Mar............. 20,431 11,377 9 2,532 8,646 5,272 6,485 621 5,796 275 129 435 6,635 1,344 384 450 482 ! 1 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—Mar.'___ 28,311 7,473 433 358 261 783 1,069 400 1,153 12,935 1,386 2,744 563 4 -1,250 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 Feb........... 29,833 6,120 320 413 315 1,833 900 421 1 ,530 13,360 1,696 3,143 570 53 -841 Mar.......... 29,054 7,752 320 379 44 935 -672 270 1,809 14,382 1,659 3,407 567 16 -1,814 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 in 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 □ MAY 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 s a i s c l 1 Total Total Bills Ma C r c e k a r t e t e t if s a i b ­ le Notes Bonds 2 b C v i o b e 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—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 r38.7 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 Mar. 600.5 480.7 385.3 163.1 183.1 39.0 2.3 93.1 21.7 69.0 118.5 Apr. 602.0 482.4 386.4 161 .8 185.8 38.9 2.3 93.6 21.6 69.4 118.6 1 Includes non-interest-bearing debt (of which $613 million on Apr. 30, 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 E pe n r d i o o d f p T g d u r o e b o t b s l a t i s l c ag G t U e a r o n n u .S v c d s t i . t . es 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 i e 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 t a d 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 t n o e e n d i r g a ­ n l 1 t i O 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—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 23.6 528.2 140.9 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.................. 576.6 137.4 87.9 349.4 85.8 4.5 9.3 20.2 33.8 67.3 23.6 66.5 38.3 1976—Jan.................. 584.4 139.3 89.8 355.3 87.0 4.7 9.9 21.2 34.6 67.7 23.6 68.3 38.3 Feb.*.............. 593.9 139.7 89.0 365.1 88.0 4.9 10.0 23.2 36.4 68.0 24.5 69.6 40.3 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

MAY 1976 a U.S. GOVERNMENT SECURITIES A35 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 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—Pec. 31............................................................. 366,191 199,692 157,483 42,209 112,270 26,436 14,264 10,530 1976—Feb. 29............................................................. 378,773 200,775 162,088 38,687 120,331 32,382 14,187 11,098 Mar. 31............................................................. 385,296 203,780 163,140 40,640 123,933 32,386 14,131 11,066 U.S. Govt, agencies and trust funds: 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—Dec. 31..................................................... 19,347 2,769 207 2,562 7; 058 3,283 4,233 2,053 1976—Feb. 29..................................................... 19,158 3,081 455 2,626 6,652 3,113 4,239 2,074 Mar. 31..................................................... 19,110 3,018 457 2,561 6,674 3,082 4,246 2,089 Federal Reserve Banks: 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—Dec. 31.................................................... 87,934 46,845 38,018 8,827 30,518 6,463 1,507 2,601 1976—Feb. 29..................................................... 88,990 45,819 38,240 7,579 31,195 7,562 1,532 2,883 Mar. 31..................................................... 89,753 46,504 38,330 8,174 31,405 7,766 1,534 2,904 Held by private investors: 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—Dec. 31.................................................... 255,860 150,078 119,258 30,820 74,694 16,690 8,524 5,876 1976—Feb. 29..................................................... 270,625 151,875 123,393 28,482 82,484 21,707 8,416 6,141 Mar. 31..................................................... 276,433 154,258 124,353 29,905 86,214 21,538 8,351 6,073 Commercial banks: 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—Dec. 31............................................ 64,398 29,875 17,481 12,394 29,629 4,071 552 271 1976—Feb. 29............................................ 66,041 27,390 16,289 11,101 33,270 4,597 525 259 Mar. 31............................................ 69,742 29,290 17,841 11,449 35,362 4,337 517 236 Mutual savings banks: 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—Dec. 31............................................ 3,300 983 554 429 1,524 448 232 112 1976—Feb. 29............................................ 3,662 946 528 418 1 ,805 584 220 108 Mar. 31............................................ 3,895 1,074 585 489 1,924 562 220 115 Insurance companies: 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—Dec. 31............................................ 7,565 2,024 1,513 511 2,359 1,592 1,154 436 1976—Feb. 29............................................ 8,312 2,213 1,759 454 2,761 1,750 1,154 434 Mar. 31............................................ 8,577 2,055 1,546 509 3,100 1,854 1,150 418 Nonfinancial corporations: 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—Dec. 31............................................ 9,365 7,105 5,829 1,276 1,967 175 61 57 1976—Feb. 29............................................ 11,531 9,251 8,175 1,076 2,009 166 56 49 Mar. 31............................................ 11,275 9,168 7,890 1,278 1,865 120 56 66 Savings and loan associations: 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—Dec. 31............................................ 2,793 914 518 396 1,558 216 82 22 1976—Feb. 29............................................ 3,662 1,373 979 394 1,981 203 89 16 Mar. 31............................................ 4,180 1,781 1,265 516 2,120 175 88 16 State and local governments: 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—Dec. 31............................................ 9,285 5,288 4,566 722 1,761 782 896 558 1976—Feb. 29............................................ 10,573 6,296 5,522 774 2,033 835 802 605 Mar. 31............................................ 11,334 6,852 5,871 981 2,040 886 832 724 All others: 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—Dec. 31............................................ 159,154 103,889 88,797 15,092 35,894 9,405 5,546 4,420 1976—Feb. 29............................................ 166,846 104,407 90,142 14,265 38,625 13,573 5,569 4,671 Mar. 31............................................ 167,431 104,038 89,354 14,684 39,803 13,604 5,488 4,498 Note.—Direct public issues only. Based on Treasury Survey of banks, and 729 insurance companies combined, each about 90 per cent; Ownership. (2) 455 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) 5,526 commercial banks, 470 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 U.S. GOVERNMENT SECURITIES □ MAY 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—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 7,049 1,765 569 126 1 ,265 3,118 2,192 2,231 1,417 Feb.................................. 8,329 5,863 1,553 755 158 951 2,389 2,196 2,793 1,163 9,044 6,763 1,807 358 116 1,308 2,777 2,276 2,683 1,185 Week ending— 1976—Mar. 3......................... 8,589 6,310 1,615 507 158 1,088 2,776 2,130 2,594 1,368 10......................... 10,232 7,880 1,784 474 95 1,279 3,533 2,580 2,840 906 17......................... 7,485 5,777 1 ,355 271 82 1,152 2,168 1,874 2,291 831 24......................... 10,237 7,506 2,224 358 149 1,589 3,261 2,486 2,901 1,806 31......................... 8,180 5,804 1,990 260 127 1,281 2,020 2,213 2,666 r\,281 Apr. 7......................... 10,520 7,914 2,196 271 138 1,297 3,334 2,476 3,413 1,845 14......................... 11,736 8,379 2,744 458 156 1,640 3,462 2,957 3,677 1,984 21......................... 8,814 6,728 1,738 256 93 1,396 2,200 2,184 3,033 1,831 28......................... 9,986 7,647 1,984 224 131 1,204 3,391 2,115 3,276 1,271 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 Commerc:ial 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 ea -5 rs y 5 ea -1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e i o 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 po s r 1 a­ ot A h l e l r 1975—Mar................. 5,737 3,435 1,486 618 198 1,444 1975- 6,881 1,879 1,650 838 2,513 Apr.................. 4,453 3,123 1,036 218 77 937 5,696 1,655 1,326 583 2,132 May................. 6,332 4,917 1,094 248 73 896 May. 6,656 1,684 1,567 452 2,953 June................. 6,768 5,923 748 100 -3 790 June. 7,682 1,955 1,979 737 3,012 July................. 5,736 4,978 775 47 -64 626 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 6,576 1,160 1,640 972 2,804 Oct................... 7,322 6,019 1,091 111 102 491 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 5,274 322 218 247 982 7,107 2,001 1,304 1,086 2,716 1976—Jan................... 6,305 5,287 449 398 170 694 1976- 6,766 1,757 1,337 1,147 2,526 Feb.................. 6,263 5,477 381 224 183 602r 6,700 1,705 850 1,017 3,128 Mar................. 6,884 6,360 286 122 116 537 7,175 1,865 1,138 1,225 2,947 Week ending— Weekending— 1976—Feb. 4 5,882 5,343 177 246 115 638 1976--Feb. 4... 7,075 1,721 1,037 908 3,409 11 6,967 5,590 761 356 259 658 11... 6,370 1,842 960 935 2,634 18......... 6,977 6,283 309 199 186 605 18... 7,435 1,734 1,084 1,037 3,582 25 5,765 5,196 270 151 149 564 25.. . 6,405 1,535 544 1,059 3,267 Mar. 3 5,282 4,899 138 102 144 476 Mar. 3. . . 6,059 1,503 627 1,181 2,747 10 7,079 6,414 454 94 117 443 10... 7,030 2,223 870 1,273 2,665 17 6,666 6,581 -115 102 98 463 17... 7,489 2,340 1,266 1,243 2,640 24 7,096 6,572 286 128 111 464 24... 7,175 1,681 1,107 1,238 3,149 31 7,446 6,515 611 186 133 812 31... 7,666 1,501 1,570 1,171 3,425 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

MAY 1976 □ FEDERALLY SPONSORED CREDIT AGENCIES A37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal hon ie 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............... 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—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 r27,962 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 29,319 4,041 3,664 8,784 9,319 16,380 14,774 Dec... 17,845 4,376 109 18,863 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 Feb... 16,380 5,286 69 17,738 3,085 2,829 31,704 29,758 4,546 3,878 10,013 9,254 16,930 15,120 Mar. . 15,757 6,063 110 17,714 3,182 2,827 31,564 30,021 4,656 3,918 10,272 9,812 17,264 15,120 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) are not guaranteed by the U.S. Govt. Loans are gross of valuation sheet items are capital accounts of all agencies, except for stock of FHLB’s. reserves and represent cost for FNMA and unpaid principal for other Bonds, debentures, and notes are valued at par. They include only publicly 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 G l U o o a .S v n t . s . State d s i a s t n t a r d t i . ct Other2 Total c E at d i u on ­ b R r a o id 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 t id e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1971.. 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 1972.. 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 1973.. 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 1974.. 24,315 13,563 10,212 461 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 1975.. 30,607 16,020 14,511 7,438 12,441 10,660 29,495 4,689 1,277 7,209 647 15,673 1975—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. ' 2,342 1,130 1,201 639 1,060 635 2,256 427 95 599 88 1,047 Feb.r 2,670 1,290 1,365 446 1,443 762 2,568 316 135 570 130 1,417 Mar. 3,239 2,116 1,116 1,254 768 1,213 3,105 414 214 698 691 1,088 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 □ MAY 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 Other 5 Total Total Publicly Privately Preferred Common offered placed 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 1975. 53,692 42,812 32,583 10,229 3,455 7,425 1974—Dec.. 3,505 3,052 2,172 880 152 301 1975—Jan.. . 5,365 4,792 3.657 1,135 235 338 Feb.. r4,530 '3,908 3,201 '707 173 449 Mar.. 5,378 4,481 3,971 510 253 644 Apr.. 4,294 3,194 2,771 423 349 751 May. 5,798 298 3,796 502 346 1,154 June. 5,618 613 3,943 670 230 775 July.. 4,390 733 2.658 1,075 198 459 Aug.. '2,398 835 1,356 '479 129 434 Sept.. '2,845 009 1,414 '595 308 528 Oct... '4,710 163 2,389 '774 332 1 ,215 Nov.. '4,087 304 1 ,666 '1 ,638 440 343 Dec.. 4,279 482 1,761 1,721 462 335 Gross proceeds, major groups of corporate issuers Period Manufacturing Commercial and Transportation Public utility Communication Real estate miscellaneous and financial Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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 1975.................................................. 17,075 1,670 2,747 1,489 3,447 1 9,649 6,231 3,465 1,002 6,429 490 1974—Dec........................................ 1,456 196 180 23 14 435 194 150 25 817 15 1975 Jan......................................... 1,901 3 179 58 84 764 507 933 5 931 Feb........................................ 1,631 44 65 60 75 1,471 486 '128 1 539 32 Mar....................................... 2,368 111 271 74 83 828 679 317 614 34 Apr........................................ 1,498 233 294 211 97 794 586 354 61 156 9 May...................................... 2,266 384 242 141 415 845 704 153 260 379 10 June...................................... 2,195 123 384 194 231 838 640 362 603 47 July....................................... 1,116 64 229 231 338 715 324 254 16 1,081 22 Aug....................................... '610 101 141 70 17 719 305 93 19 255 68 Sept;...................................... '528 106 '54 37 151 720 541 249 48 '306 105 Oct......................................... '813 142 '337 152 626 '571 676 373 555 '443 23 Nov....................................... '886 229 '81 68 1,000 848 420 '45 10 '443 57 Dec........................................ 1,263 130 470 193 330 536 363 204 27 679 83 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

MAY 1976 □ 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 1972 42,306 10,224 32,082 ! 27,065 8,003 19,062 15,242 2,222 13,018 1973. 33,559 11,804 21,754 21,501 8,810 12,691 12,057 2,993 9,064 1974 39,334 9,935 29,399 ' 31,554 6,255 25,098 7,980 3,678 4,302 1975 53,255 10,991 42,263 40,468 8,583 31,886 iI - 12,787 2,408 10,377 i 1974--IV................ 12,272 2,871 9,401 10,086 2,004 8,082 !! 2,186 866 1,319 1975- 15,211 2,088 13,123 12,759 1 ,587 11,172 ! 2,452 501 1 ,951 II................. 15,602 3,211 12,390 11,460 2,336 9,124 i 4,142 875 3,266 Ill............... 9,079 2,576 6,503 6,654 2,111 4,543 ! 2,425 465 1,960 IV................ 13,363 3,116 10,247 9,595 2,549 7,047 ! 3,768 567 3,200 i Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial i 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 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 -93 4,265 4,509 3,165 1,399 3,523 1,181 197 4 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1975 .... 13,219 1,607 1,605 1,137 2,165 65 7,236 6,015 2,980 1,084 4,682 468 1974—IV, 3,098 126 240 -47 342 9 2,079 1,107 628 107 1,695 17 1975— I. , 5,134 262 373 77 1 1 2,653 1,569 1,269 24 1,742 18 II. 4,574 500 483 490 429 7 1,977 1,866 810 359 852 43 III 1,442 412 221 108 147 53 1,395 1,043 472 97 866 247 IV 2,069 433 528 462 1,588 4 1,211 1,537 429 604 1,222 160 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com­ 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in­ Note.—Securities and Exchange Commission estimates of cash trans­ ternal funds or with proceeds of issues for that purpose. actions only. As contrasted with data shown on preceding page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares 4 at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963................ 2,460 1,504 952 25,214 1,341 23,873 1975—Mar. . 847 623 224 40,449 3,870 36,579 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Apr.. . 808 791 17 42,353 3,841 38,512 1965............... 4,359 1,962 2,395 35,220 1,803 33,417 May.. 677 735 -58 43,832 3,879 39,953 June.. 703 811 -108 45,538 3,640 41 ,898 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 July... 813 1,052 -239 42,896 3,591 39,305 1967................ 4,670 2,745 1,927 44,701 2,566 42,135 Aug... 753 788 -35 41,672 3,660 38,012 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 Sept... 760 874 -114 40,234 3,664 36,570 Oct.. . 914 995 -81 41,860 3,601 38,259 1969................ 6,717 3,661 3,056 48,291 3,846 44,445 Nov... 786 911 -125 42,460 3,733 38,727 1970................ 4,624 2,987 1,637 47,618 3,649 43,969 Dec... 1,040 1,093 -53 42,179 3,748 38,431 1971................ 5,145 4,751 394 55,045 3,038 52,007 1976—Jan... 411 538 -47 46,529 3,287 43,242 1972................ 4,892 6,563 -1,671 59,831 3,035 56,796 Feb... 262 r577 r — 315 46,540 3,084 43,546 1973................ 4,358 5,651 -1,261 46,518 4,002 42,516 Mar... 323 676 — 353 46,862 2,876 43,986 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 Includes contractual and regular single-purchase sales, voluntary and Note.—Investment Company Institute data based on reports of mem­ contractual accumulation plan sales, and reinvestment of investment in­ bers, which comprise substantially all open-end investment companies come dividends; excludes reinvestment of realized capital gains dividends. registered with the Securities and Exchange Commission. Data reflect 2 Market value at end of period less current liabilities. newly formed companies after their initial offering of securities. 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. 4 Beginning Jan. 1976, sales and redemption figures exclude money market funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 BUSINESS FINANCE o MAY 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 HI Total (170 corps.): Sales.......................................... 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 Dividends................................ 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 Sales.......................................... 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 Memo: PAT unadj.1........ 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 2,298 546 543 529 607 645 517 502 607 719 Memo: PAT unadj.1........ 1,805 2,074 2,328 546 573 533 610 646 540 526 615 745 Dividends................................ 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 2,672 3,504 4,875 901 883 1,044 1,247 1,223 1,362 925 929 1,034 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. i........ 5,325 8,505 11,747 2,192 2,688 3,011 3,304 3,132 2,299 1,871 2,040 2,268 Dividends................................ 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 1,137 799 639 485 381 653 789 965 184 227 221 209 238 297 273 227 223 Machinery (27 corps.): Sales.......................................... 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 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 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

MAY 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 II................. 129.6 52.6 77.1 30.9 46.2 1971........................... 82.0 37.7 44.3 23.0 21.3 Ill................ 146.7 59.3 87.4 31.7 55.7 ........................... 96.2 41.4 197524.6 24.6 30.0 IV................ 123.9 49.2 74.7 31.7 43.0 1973........................... 117.0 48.2 68.8 27.8 40.9 1974........................... 132.1 52.6 79.5 31.1 48.4 1975—I................... 97.1 37.5 59.6 32.1 27.5 1975........................... 116.8 45.6 71.2 32.8 38.4 II................. 108.2 41.6 66.6 32.6 34.0 Ill............... 129.5 50.7 '78.8 33.5 45.3 IV................ 132.4 52.5 79.9 33.1 46.8 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 Other ties G U o . v S t . , i Other G U o . v S t . .1 Other taxes 1970................................ 187.4 492.3 50.2 7.7 4.2 201 .9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 1971................................ 203.6 529.6 53.3 11 .0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 1972................................. 221.3 573.5 57.5 9.3 3.4 240.0 215.2 48.1 352.2 4.0 230.4 15.1 102.6 1973—11......................... 235.4 608.2 59.0 10.0 2.9 255.4 230.1 50.8 372.7 4.5 241.7 15.0 111 .6 Ill....................... 239.5 625.3 58.9 9.7 3.0 264.4 238.0 51.3 385.8 4.4 250.2 16.5 114.7 IV........................ 242.3 643.2 61.6 11 .0 3.5 266.1 246.7 54.4 401.0 4.3 261 .6 18.1 117.0 1974—1........................... 250.1 666.2 59.4 12.1 3.2 276.2 258.4 56.9 416.1 4.5 266.5 20.6 124.5 II......................... 253.9 685.4 58.8 10.7 3.4 289.8 269.2 53.5 431 .5 4.7 278.5 19.0 129.1 Ill....................... 259.5 708.6 60.3 11 .0 3.5 295.5 282.1 56.1 449.1 5.1 287.0 22.7 134.3 IV........................ 261 .5 712.2 62.7 11.7 3.5 289.7 288.0 56.6 450.6 5.2 287.5 23.2 134.8 1975—1........................... 260.4 698.4 60.6 12.1 3.2 281 .9 285.2 55.4 438.0 5.3 271.2 21 .8 139.8 II......................... 269.0 703.2 63.7 12.7 3.3 284.8 281.4 57.3 434.2 5.8 270.1 17.7 140.6 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 d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o c m ati m on u s ­ Other i T A (S o . . R t A a . . ) l 1971......................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.68 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 17.93 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—1................... 26.56 4.94 6.12 .89 .49 .35 .67 4.41 .65 8.04 118.70 112................ 30.19 5.65 7.19 .97 .51 .39 .82 5. OF .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 □ MAY 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 1971 1972 1973 IV IV ALL HOLDERS.............................................. 499,767 564,825 634,954 688,652 695,369 709,153 724,993 '740,764 1- to 4-family.................................................. 307,204 345,372 384,738 412,168 415,607 425,132 '436,214 '446,965 Multifamily..................................................... 67,387 76,667 85,296 91,222 91,522 91,733 '92,397 '93,320 Commercial..................................................... 92,318 107,349 125,572 140,965 142,701 145,353 '148,398 '151,514 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 '580,303 1- to 4-family.................................................. 253,581 288,018 320-,420 340,007 342,313 350,198 '357,978 '364,986 Multifamily..................................................... 52,472 59,398 64,750 68,161 68,095 68,453 '69,012 '69,634 Commercial..................................................... 78,330 92,063 108,735 121,948 123,684 126,634 '129,479 '132,495 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 Mutual savings banks.................................... 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 Multifamily................................................. 14,386 15,490 16,843 17.234 17,291 17,433 17,579 17,739 Commercial................................................. 8,901 10,354 12,084 12,956 12,996 13,112 13,221 13,343 Farm............................................................. 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 '278,693 1- to 4-family.............................................. 142,275 167,049 187,750 201.553 204,099 211,290 '218,483 '224,710 Multifamily................................................. 17,355 20,783 22,524 23,683 23,831 24,409 '24,976 '25,417 Commercial................................................ 14,620 18,350 21,459 24,057 24,512 25,637 '27,141 '28,566 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 Commercial................................................ 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. 39,366 45,790 55,664 72,380 76,010 79,952 84,522 '89,039 1- to 4-family.................................................. 26,416 30,170 35,579 46,322 48,455 51,195 54,697 '58,440 Multifamily.................................................... 4.601 6,063 8,364 11,329 11,995 12,348 12,753 '12,954 Commercial.................................................... 11 Farm................................................................. 8,338 9,557 11,721 14,729 15,560 16,409 17,072 17,645 Government National Mortgage Association. 5,332 5,113 4,029 4,846 5,599 5,610 6,534 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 Farmers Home Administration.................... 819 837 1,200 1,600 1,700 ,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 '4,970 1- to 4-family.............................................. 2,517 2,199 2,013 2,009 1,879 1,915 1,951 '1,990 Multifamily.................................................. 872 1,139 1,463 2,006 2,168 2,382 2,730 '2,980 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 71,022 70,972 '71,422 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 10,932 10,632 '10,732 Commercial....................................................... 13,977 15,286 16,837 19,017 19,017 18,719 18,919 '19,019 Farm................................................................... 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

MAY 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 a e r e - - d Sales p d M e u r r a i i d o n e d g st O i a n n u g d t­ ­ Total pr V xtll A AA- 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 d e 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 1,297 408 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 2 6,106 4,126 4,987 1,824 3,163 1,716 1,020 982 111 1975—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 76 189 3,170 4,958 1,816 3,142 47 57 42 99 Feb... 31,618 19,541 9,521 56 55 355 3,201 4,686 1,802 3,084 51 296 43 87 Mar. . 31,482 19,431 9,473 85 22 405 3,120 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.-under­ by GNMA. Commitments include some multifaimily 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 Nov. 17 Dec. 1 Dec. 15 Dec. 29 Jan. 12 Jan. 26 Feb. 9 Feb. 23 Mar. 8 Mar. 22 Apr. 5 Apr. 19 Amounts (millions of dollars): Govt.-underwritten loans Offered i.................................... 293.1 255.9 287.1 95.3 58.4 103.9 252.2 126.9 299.9 146.3 106.2 132.1 Accepted.................................. 180.6 138.5 158.8 52.7 31.5 57.7 179.9 81.2 171.9 121.6 56.2 60.1 Conventional loans Offered1.................................... 68.6 73.9 69.7 41.8 42.7 33.4 57.8 44.0 75.4 46.2 56.4 55.3 Accepted.................................. 34.6 40.5 31.2 11.8 32.1 24.7 36.9 23.3 45.0 33.7 31.8 33.4 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 9.33 9.32 9.31 9.29 9.13 9.07 9.07 9.04 9.06 9.03 8.94 9.05 Conventional loans.................... 9.40 9.38 9.36 9.35 9.28 9.22 9.17 9.14 9.15 9.13 8.83 9.00 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 □ MAY 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 27.3 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 12.6 12.5 12.5 Savings and loan assns.................................. FHA.............................................................. j 29.8 ) 29.7 } 29.9 } 29.9 } 29.9 } 30.2 30.4 VA................................................................. 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 L o d u o o o s a l u l a n a n n r t d s ) s ( C p in o e r n r 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 o e r r - o a v t a c 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 i a o 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—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 Oct................... 57 144.7 2,538 10.29 20/10 74.3 10.7 1 .28 11.3 Nov................. 47 252.8 5,378 10.24 22/7 72.7 10.9 1 .35 11.2 Dec.................. 52 159.4 3,065 10.15 23/4 73.7 11 .0 1 .34 11 .0 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

MAY 1976 □ REAL ESTATE CREDIT AND CONSUMER CREDIT A45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms 1 Yields (per cent) in insured primary market loans—Yield Period in private C ra o t n e t ( r p a e c r t F c e h e a s r g a e n s d M (y a e t a u r r s it ) y Loa r n a / t p io r ice pr P ic u e r c ( h th a o s u e s. (t a h m L o o u o a s u . n n o t f FHLBB HUD se m c a on rk d e a t r 5 y cent) (per cent)2 (per cent) of dollars) dollars) series 3 series 4 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—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................... 8.71 1 .74 27.4 76.9 47.2 35.4 8.99 9.05 9.06 Feb.................. 8.67 1 .56 26.0 75.1 45.2 33.4 8.93 9.00 9.04 Mar.?5............. 8.67 1.60 27.0 76.4 46.9 35.1 8.93 8.95 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—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 Aug. 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept. 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.43 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 Apr. 11.44 11.78 13.22 13.55 17.17 13.07 17.58 May 11.39 11.57 13.11 13.41 17.21 13.09 17.65 13.57 19.63 20.72 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 13.18 17.25 Feb., 11.18 11.77 13.02 13.24 17.14 13.14 17.37 13.18 19.58 21.13 Mar. 11.13 11.82 13.02 13.13 16.99 13.13 17.48 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 □ MAY 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Amounts outstanding (end of period) TOTAL........................................................... 148,273 158,101 161,819 157,720 158,390 159,200 161,819 160,745 160,094 160,621 By holder: Commercial banks................................ 71,871 75,846 75,710 75,024 75,286 75,174 75,710 75,342 75,010 75,103 Finance companies............................... 37,243 38,925 38,932 38,375 38,411 38,642 38,932 38,737 38,660 38,665 Credit unions......................................... 19,609 22,116 25,354 24,510 24,706 24,934 25,354 25,250 25,492 26,025 Retailers1................................................ 16,395 17,933 18,328 16,232 16,444 16,860 18,328 17,771 17,192 16,987 Others2................................................... 3,155 3,281 3,495 3,579 3,543 3,590 3,495 3,645 3,740 3,841 By type of credit: Automobile, total................................. 51,274 52,209 53,629 52,852 53,286 53,479 53,629 53,318 53,519 54,117 Commercial banks........................... 31,502 30,994 30,198 30,031 30,259 30,235 30,198 29,862 29,872 30,117 18,997 18,687 17,620 17,737 17,848 17,761 17,620 17,500 17,409 17,471 12,505 12,306 12,578 12,294 12,411 12,474 12,578 12.363 12,463 12,646 11,927 12,435 13,364 13,066 13,203 13,325 13,364 13,407 13,490 13,624 Credit unions.................................... 7,456 8,414 9,653 9,329 9,403 9,491 9,653 9,612 9,704 9,908 Others................................................. 389 366 414 426 421 428 414 437 453 468 Mobile homes: Commercial banks........................... 8,340 8,972 8,420 8,566 8,519 8,502 8,420 8,351 8,279 8,233 Finance companies........................... 3,378 3,570 3,504 3,499 3,498 3,519 3,504 3,464 3,440 3,420 Home improvement, total.................. 7,453 8,398 8,301 8,372 8,374 8,361 8,301 8,263 8,254 8,267 Commercial banks........................... 4,083 4,694 4,813 4,797 4,824 4,827 4,813 4,777 4,757 4,767 Revolving credit: Bank credit cards.............................. 6,838 8,281 9,078 8,414 8,450 8,500 9,078 9,150 8,987 8,842 2,254 2,797 2,883 2,826 2,834 2,822 2,883 2,911 2,912 2,876 68,736 73,874 76,004 73,192 73,430 74,018 76,004 75,287 74,703 74,868 Commercial banks, total................ 18,854 20,108 20,318 20,390 20,401 20,289 20,318 20,290 20,203 20,270 12,873 13,771 14,035 13,935 14,005 13,943 14,035 14,049 14,010 14,034 Finance companies, total............... 21,021 21,927 21,465 21,104 21,037 21,158 21,465 21,279 21,152 21,078 Personal loans............................... 16,587 17,176 17,179 16,858 16,822 16,942 17,179 17,035 16,952 16,922 11,564 13,037 14,937 14,443 14,559 14,692 14,937 14,878 15,020 15,333 16,395 17,933 18,328 16,232 16,444 16,860 18,328 17,771 17,192 16,987 902 869 956 1,022 989 1,019 956 1,069 1,136 1,200 Net change (during period) 3 TOTAL........................................................... 20,826 9,824 3,719 759 830 805 894 1,295 1,169 1,513 By holder: 11,002 3,971 -134 295 309 233 310 208 475 572 Finance companies............................... 5,155 1,682 7 95 36 157 34 260 198 302 2,696 2,507 3,237 428 255 270 471 387 420 514 1,632 1,538 395 -107 258 84 125 185 58 108 Others..................................................... 341 126 214 49 -29 61 -44 254 17 16 By type of credit: 6,980 935 1,420 385 389 404 540 488 632 654 4,196 -508 -796 117 164 163 260 -44 293 239 2,674 -310 -1,067 6 76 33 48 40 34 102 1,523 -199 272 111 88 130 213 -84 259 138 Finance companies........................... 1,753 508 929 91 103 144 89 275 174 230 1,024 958 1,239 154 122 91 184 203 165 192 Other................................................... 7 -23 48 23 1 5 6 54 * -7 Mobile homes: 1,933 634 -553 -17 -62 -6 -61 -26 -45 -14 462 192 -66 -10 -7 26 -10 -28 -19 -2 Home improvement, total.................. 1,196 946 -100 19 -6 38 23 106 57 23 483 612 114 27 23 42 41 30 32 35 Revolving credit: 1,428 1,442 798 106 78 29 -49 107 133 224 Bank check credit............................. 479 543 86 14 17 2 13 23 19 12 Ail other................................................. 8,344 5,141 2,133 262 420 312 440 625 392 615 2,479 1,257 213 48 89 2 107 118 43 75 1,491 900 265 45 119 -6 149 100 33 42 2,520 906 -462 49 -27 20 -4 20 49 117 Personal loans............................... 1,675 589 -3 59 -7 15 23 40 114 77 1,591 1,473 1,900 260 127 173 274 173 242 307 1,632 1,538 395 -107 258 84 125 185 58 108 122 -33 87 13 -28 33 -61 129 * 7 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

MAY 1976 □ CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND REPAYMENTS (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Extensions1 TOTAL........................................................... 164,527 166,170 166,833 14,555 14,832 14,877 15,295 16,205 15,824 16,318 By holder: Commercial banks............................... 72,216 72,602 73,186 6,529 6,518 6,599 6,796 6,687 6,939 7,102 43,221 41,809 39,543 3,459 3,412 3,712 3,530 4,231 4,054 3,992 21,143 22,403 24,151 2,156 2,187 1,995 2,381 2,253 2,248 2,389 25,440 27,034 27,369 2,164 2,531 2,302 2,431 2,578 2,347 2,596 Others3................................................... 2,507 2,322 2,584 247 183 268 158 456 236 238 By type of credit: Automobile, total................................. 46,486 43,431 46,530 4,235 4,189 4,218 4,405 4,511 4,378 4,537 Commercial banks........................... 29,368 26,407 26,693 2,436 2,434 2,460 2,591 2,361 2,545 2,584 Purchased...................................... 17,497 15,575 14,758 1,301 1,333 1,310 1,450 1,314 1,377 1,463 Direct............................................. 11,871 10,831 11,936 1,135 1,101 1,150 1,141 1,047 1,168 1,121 Finance companies........................... 9,685 8,851 9,651 865 836 831 897 987 912 954 Credit unions.................................... 7,009 7,788 9,702 873 878 885 875 1,068 881 964 Others................................................. 424 385 484 61 41 42 42 95 40 35 Mobile homes: 4,437 3,486 2,349 222 198 233 203 209 211 230 1,673 1,627 1,018 83 81 97 88 79 71 81 Home improvement, total.................. 4,828 4,854 4,333 388 392 409 418 459 429 421 Commercial banks........................... 2,489 2,790 2,515 224 238 243 253 231 241 247 Revolving credit: Bank credit cards............................. 13,862 17,098 19,567 1,737 1 ,698 1,752 1,719 1,840 1,931 2,046 3,373 4,228 4,214 350 357 348 412 397 407 390 89,864 91,455 88,818 7,539 7,915 7,819 8,051 8,711 8,397 8,613 Commercial banks, total................ 18,683 18,602 17,844 1,560 1,593 1,562 1,619 1,649 1,604 1,605 Personal loans............................... 12,927 13,177 12,623 1,105 1,144 1,076 1,178 1,145 1,139 1,135 Finance companies, total............... 31,032 30,764 28,654 2,489 2,474 2,771 2,527 3,139 3,041 2,941 Personal loans............................... 18,915 18,827 18,406 1,624 1,613 1,674 1,513 1,980 1,916 1,801 Credit unions.................................... 13,768 14,228 13,992 1 ,238 1,269 1,074 1,461 1,141 1,319 1,376 Retailers............................................. 25,440 27,034 27,369 2,164 2,531 2,302 2,431 2,578 2,347 2,596 Others................................................. 941 827 959 89 48 111 14 204 86 93 Repayments1 TOTAL........................................................... 143,701 156,346 163,113 13,795 14,002 14,072 14,401 14,910 14,656 14,805 By holder: 61,214 68,631 73,320 6,234 6,209 6,367 6,486 6,479 6,464 6,530 Finance companies............................... 38,066 40,127 39,536 3,364 3,376 3,555 3,496 3,971 3,856 3,690 Credit unions......................................... 18,447 19,896 20,914 1,728 1,932 1,725 1,910 1,866 1,828 1,875 23,808 25,496 26,974 2,271 2,273 2,218 2,306 2,393 2,289 2,488 2,166 2,196 2,370 198 212 208 202 202 219 222 By type of credit: Automobile, total................................. 39,506 42,496 45,110 3,849 3,800 3,814 3,865 4,023 3,746 3,883 Commercial banks........................... 25,172 26,915 27,489 2,319 2,271 2,297 2,331 2,405 2,252 2,345 Purchased...................................... 14,822 15,886 15,825 1,295 1,257 1,277 1,402 1,274 1,343 1,361 10,348 11,028 11,663 1,024 1,013 1,020 928 1,131 909 983 Finance companies........................... 7,932 8,343 8,722 773 733 687 808 712 738 724 Credit unions..................................... 5,985 6,830 8,463 719 756 794 691 865 716 772 Others................................................. 417 408 436 38 40 37 36 41 40 42 Mobile homes:. Commercial banks........................... 2,504 2,852 2,902 239 260 239 264 235 256 244 Finance companies........................... 1,211 1,435 1,084 94 88 72 98 107 90 83 Home improvement, total.................. 3,632 3,908 4,434 369 398 371 395 353 372 398 Commercial banks........................... 2,006 2,178 2,400 197 214 202 212 201 209 212 Revolving credit: Bank credit cards 12,434 15,656 18,769 1,631 1,619 1,723 1,768 1,733 1,798 1,822 Bank check credit............................. 2,894 3,685 4,128 336 340 346 399 374 388 378 81,520 86,314 86,689 7,277 7,496 7,507 7,611 8,086 8,005 7,998 Commercial banks, total................ 16,204 17,345 17,635 1,512 1,504 1,560 1,512 1,531 1,561 1,530 Personal loans............................... 11,436 12,277 12,361 1,060 1,025 1,082 1,029 1,045 1,106 1,093 28,512 29,858 29,116 2,440 2,501 2,751 2,531 3,119 2,992 2,824 Personal loans............................... 17,240 18,238 18,403 1,565 1,620 1,659 1,490 1,940 1,802 1,724 12,177 12,755 12,092 978 1,142 901 1,187 968 1,077 1,069 23,808 25,496 26,974 2,271 2,273 2,218 2,306 2,393 2,289 2,488 Others................................................. 819 860 872 76 76 77 75 75 86 86 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 □ MAY 1976 MARKET GROUPINGS (Seasonally adjusted, 1967 = 100) 1967 1975 1975 1976 pro­ aver­ Grouping por­ age tion Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb. Mar.P Apr.6 100.0 113.8 109.9 110.1 111.1 112.2 114.2 116.2 116.7 117.6 118.4 119.5 120.8 121 .7 122.5 62.21 115.7 113.0 113.4 114.2 115.3 115.8 116.9 116.9 118.0 119.3 120.2 121.3 121.6 122.4 48.95 115.5 112.6 113.7 114.5 115.7 115.9 116.9 117.0 117.9 119.0 119.6 120.8 121.1 121.9 28.53 124.0 119.7 121 .2 123.3 125 .5 125 .7 126.8 127.0 128.9 130.2 130.9 132.1 132.6 133.5 20.42 103.6 103.0 102.9 102.2 102.2 102.3 102.8 102.6 102.5 103.5 103.8 105.0 105.0 105.8 13.26 116.3 113.4 112.4 112.8 114.3 115.4 116.6 117.0 118.5 120.3 122.4 123.4 123.5 124.1 37.79 110.6 105.2 104.9 106.0 106.8 111.5 115.1 116.5 116.8 116.8 118.3 120.2 121.9 122.7 Consumer goods 7.86 112.5 107.8 110 5 113.2 115.9 116.1 118.3 118.3 118.8 119.5 120.9 123.6 125.6 126.5 2.84 99.1 93.6 97.6 103.4 106.9 105.9 106.7 108.9 109.3 111.3 111.6 115.0 116.4 115.9 1.87 86.9 82.4 86.3 93.2 97.7 96.8 97.9 101 .2 100.0 100.1 99.2 105.2 108.5 112.4 Auto parts and allied goods........ .97 122.3 115.2 119.3 122.8 124.8 123.2 123.5 123.9 127.2 132.7 135.2 133.5 131 .7 122.7 5.02 120.2 115.9 117.8 118.8 121 .0 121.9 125.0 123.6 124.2 124.1 126.2 128.6 130.9 132.6 Appliances, TV, and radios......... 1.41 101 .9 96.7 102.4 103.5 104.8 106.5 108.4 105.4 104.6 106.0 111 .4 113.1 116.5 119.1 Appliances and A/C.................. .92 118.4 114.2 118.4 118.3 118.9 122.2 124.1 123.4 122.8 123.9 128.5 132.3 131.7 TV and home audio.................. .49 70.8 Carpeting and furniture............... 1.08 133.8 127.8 128.6 131 .1 135.5 136.0 137.6 137.9 139.3 138.7 139.1 141.9 143.1 2.53 124.5 121.4 121 .7 122.1 124.0 124.5 129.0 127.4 128.8 128.1 129.1 131.6 133.6 134.7 20.67 128.4 124.0 125.3 127.2 129.0 129.4 130.1 130.5 132.7 134.4 134.6 135.2 135.2 136.0 Clothing................................................ 4.32 99.0 89.2 94.4 97.7 101 .6 102.0 101 .5 104.5 106.2 108.2 109 5 110.9 16.34 136.2 133.3 133.5 134.9 136.3 136.6 137.8 137.3 139.7 141 .4 141 .3 141 .1 141 .6 142.5 Consumer foods and tobacco.... 8.37 125.3 122.7 122.4 124.2 125.5 125.8 126.4 127.2 130.0 130.6 130.4 130.3 129.7 130.2 Nonfood staples.............................. 7.98 147.7 144.3 145.3 146.4 147.7 148.0 149.9 148.1 150.0 152.7 152.7 153.6 154.2 155.6 Consumer chemical products.. 2.64 161 .3 157.6 158.4 159.2 161 .2 160.4 161 .6 161 .7 167.9 169.0 167.9 168.8 169.7 Consumer paper products........ 1.91 125.1 118.4 122.8 123.3 124.1 126.7 127.7 126.4 125.5 131 .9 132.7 133.1 132.7 Consumer fuel and lighting . . . 3.43 149.9 148.6 147.8 149.4 150.4 150.3 153.2 149.5 149.8 151 .7 152.3 153.5 154.4 Residential utilities................ 2.25 161 .8 161 .9 160.9 161.3 160.5 161 .1 164.8 160.1 161.5 163.1 165.8 Equipment Business equipment.................................. 12.74 116.7 115.4 115.0 113.9 113.9 114.9 115.6 115.7 116.5 118.2 118.4 120.5 121.0 122.0 Industrial equipment......................... 6.77 116.8 116.4 115.3 114.0 113.3 113.4 114.5 115.4 116.3 118.4 118.7 119.7 120.2 121.4 Building and mining equip........... 1.45 133.7 132.3 131 .7 127.7 126.9 128.3 129.7 133.1 136.5 138.0 138.8 139.0 139.5 140.5 Manufacturing equipment........... 3.85 106.0 105.6 105.0 104.3 105.5 105.2 104.5 104.0 103.6 105.9 106.1 108.1 108.3 110.0 Power equipment........................... 1.47 128.2 128.9 126.2 125.8 120.3 120.8 125.7 127.9 129.3 131.3 131.7 130.5 131 .8 132.1 Commercial, transit, farm equip.. .. 5.97 116.6 114.2 114.7 113.9 114.6 116.4 116.9 116.2 116.7 118.0 118.2 121.6 121 .9 122.9 Commercial equipment................. 3.30 125.1 123.2 121 .5 120.7 123.0 123.4 122.6 123.3 123.3 125.3 125.7 128.9 129.4 130.7 Transit equipment.......................... 2.00 98.1 92.2 98.6 98.0 98.0 101.5 105.0 100.4 101 .7 102.9 102.5 106.6 107.0 107.8 Farm equipment............................. .67 130.4 135.7 129.0 127.3 122.9 127.7 124.3 128.0 128.6 126.8 128.5 130.1 129.8 Defense and space equipment................ 7.68 81.8 82.4 82.7 82.9 82.6 81.4 81.6 81.1 79.4 79.0 79.3 79.1 78.7 78.8 Military products................................ 5.15 80.5 80.7 82.0 82.0 82.1 80.6 80.7 80.2 77.3 77.0 76.5 76.4 75.8 75.7 Intermediate products Construction products........................... 5.93 112.4 110.1 107.6 106.8 108.0 109.3 112.0 112.5 112.5 114.2 116.9 117.6 118.0 118.6 Misc. intermediate products................. 7.34 119.7 116.1 116.2 117.4 119.3 120.3 120.3 120.7 123.3 125.3 127.1 128.1 127.9 Materials Durable goods materials........................ 20.91 106.5 101.6 100.2 99.8 100.3 106.1 108.7 110.2 110.9 110.8 113.0 115.5 116.8 118.1 Consumer durable parts................... 4.75 94.0 86.0 87.7 90.8 92.8 101 .7 103.0 102.4 102.8 103.1 104.8 106.3 108.5 109.8 Equipment parts................................. 5.41 106.4 104.6 102.1 97.3 96.8 100.7 102.4 105.2 107.9 107.9 108.7 110.3 110.5 111 .2 Durable materials n.e.c..................... 10.75 112.1 106.9 104.7 105.1 105.3 111 .0 114.5 116.3 116.1 115.7 118.9 122.2 123.8 125.1 Nondurable goods materials................. 13.99 115.0 107.9 109.5 112.3 114.0 118.3 123.4 125.0 124.9 125.7 126.4 127.1 128.8 129.2 Textile paper, and chem. mat......... 8.58 121 .2 110.4 113.2 117.0 118.9 126.0 133.9 136.1 136.3 137.7 138.8 139.4 141.4 142.0 Nondurable materials n.e.c.............. 5.41 105.1 104.0 103.7 105.1 106.2 106.0 106.7 107.3 106.9 106.6 106.8 107.9 108.8 109.0 Fuel and power, industrial................... 2.89 118.7 117.5 118.0 119.5 121.1 118.4 121.3 120.6 120.7 117.2 118.6 119.9 124.2 124.0 Supplementary groups Home goods and clothing.................... 9.34 110.3 103.6 106.9 109.1 112.0 112.8 114.2 114.7 115.8 116.7 118.5 120.4 121.8 122.9 Containers.......................................... 1.82 129.9 124.2 124.3 128.4 132.8 133.5 142.7 137.6 133.9 133.3 140.8 142.4 147.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................................ 286.3 409.6 408.6 414.5 416.1 418.1 426.1 425.8 430.9 435.1 437.0 442.0 444.0 447.4 Final products...................................... 221.4 319.0 319.4 325.0 325.2 326.3 332.9 333.7 336.5 338.9 339.7 343.7 345.7 348.5 Consumer goods............................ 156.3 217.6 217.8 223.6 224.9 225.4 230.8 231.7 234.9 237.0 237.2 239.4 241.5 243.2 Equipment....................................... 65.3 101.4 101.5 101.3 100.5 100.9 102.3 101.7 101 .8 102.0 102.4 104.2 104.4 105.2 Intermediate products ..................... 64.9 90.5 89.2 89.6 91 .1 92.9 92.9 93.0 1 c94.1 96.0 97.7 98.1 98.3 98.7 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ INDUSTRIAL PRODUCTION A49 INDUSTRY GROUPINGS (Seasonally adjusted, 1967 = 100) 1967 pro­ 1975 1975 1976 Grouping p ti o o r n ­ a a v g e e r­ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar.? Apr. M anufacturing.......... 88.55 112.2 107.9 108.2 109.5 110.6 112. 114.7 115.8 116.3 117.0 118. 119.8 120 121.5 Durable................. 52.33 105.8 103.3 102.5 103.2 103.4 105. 107.0 107.6 107. 108.1 109. 111 .0 112.0 113.6 Nondurable........... 36.22 121 .4 114.8 116.2 118.6 120.8 123.4 125.7 127.2 128.7 130.0 131 . 132.3 132.7 132.9 Mining and utilities. 11.45 127.5 128.0 126.5 126.8 127.5 127.0 127.8 127.0 127.6 127.7 129. 128.5 130.8 131 .1 Mining................... 6.37 106.6 108.5 105.9 106.3 106.4 105.0 105. 106.4 106.9 105.4 105. 103.6 106 106.3 Utilities................. 5.08 153.7 153.1 152.3 152.6 153.9 154 156.1 152.9 153 155.7 159. 159.9 160.9 162.2 Durable manufactures Primary and fabricated metals. 12.55 105.6 103.2 99.8 100.8 100.7 104.1 106.1 105.9 107. 105.6 108.5 112.1 112.9 115.9 Primary metals....................... 6.61 97 95.0 89.9 91 .8 92.8 96.5 97.2 97.0 98. 95.1 99.9 104.7 105.3 107.9 Iron and steel, subtotal... 4.23 96.1 99.4 90.1 88.7 87.0 90.4 91 .3 93.2 96.0 92.2 96.2 101 .4 101 .5 103.7 Fabricated metal products.. 5.94 114.8 112.4 100.9 110.9 109.7 112.7 116.1 115.9 117. 117.3 117.8 120.3 121 .4 124.8 Machinery and allied goods................. 32.44 104.0 101.9 101.7 102.3 102.4 103.7 105.0 105.8 106. 106.8 106.7 108.1 109.1 110.2 Machinery.......................................... 17.39 112.8 110.8 109.0 108.2 108.4 110.0 111 .7 112.9 114.2 115.1 115 116.7 118.2 119.2 Nonelectrical machinery............. 9.17 118.7 116.8 113.7 112.3 112.9 115.1 116.7 117.7 119.2 119.9 119.9 120.4 121 .7 123.5 Electrical machinery.................... 8.22 106.2 104.0 103.8 103.8 103.4 104.4 106.1 107.6 108.6 109.6 110.4 112.6 114.3 114.3 Transportation equipment............. 9.29 88.4 84.7 87.6 90.5 91 .0 92.9 94.3 94.7 94.1 95.5 94.4 96.3 97.3 98.9 Motor vehicles and parts........... 4.56 98.1 93.1 95.0 100.0 103.2 107.2 110.1 111 .0 109 110.4 110.0 114.3 118.1 121 .0 Aerospace and misc. trans. eq.. 4.73 79.0 76.6 80.4 81.3 79.3 79.1 79.2 79.0 79.4 81 .1 79.4 78 77.3 77.5 Instruments........................................ 2.07 133.7 131 .1 129.7 131 .0 132.4 132.1 134.5 134.5 137.0 138.7 140.9 141 .9 142.3 144.3 Ordnance, private and Govt.......... 3.69 85.0 86.7 86.7 87.7 86.4 84.3 84.2 83.9 81 .7 78.7 77.8 77 77.2 77.2 Lumber, clay, and glass................... 4.44 109.1 104.8 105.9 107.0 108.2 110.6 113.1 114.4 112.6 113.9 118.0 116.9 118.8 119.1 Lumber and products................. 1.65 109.7 104.1 108.0 110.3 112.0 114.5 115.5 116.8 115.0 116.1 121 .9 119.6 119.8 Clay, glass, and stone products.... 2.79 108.8 105.4 104.7 105.1 106.2 108.3 111 .7 113.0 111.2 112.6 115.7 115 118.2 Furniture and miscellaneous.... 2.90 121.5 117.6 119.7 120.1 121.1 123.1 124.3 124.6 122.9 124.1 124.0 129.5 130.0 131.3 Furniture and fixtures........... 1.38 109.6 105.6 109.6 107.9 109.4 109.6 110.6 110.8 111.0 112.2 115.1 119.3 118.1 Miscellaneous manufactures. 1.52 132.3 128.5 129.0 131.1 131.8 135.3 136.7 137 133.7 135.1 132.1 138.8 140.8 Nondurable manufactures Textiles, apparel, and leather. 6.90 98.0 90.4 93.2 94.9 97.4 100.2 104.0 106.0 108.4 109.7 111.3 109.5 110.4 111.7 Textile mill products........... 2.69 109.9 100.4 103.8 106.9 110.7 115.0 121 .2 123.2 125.2 126.8 126.7 121.5 126.0 Apparel products................. 3.33 94.7 88.2 90.9 91.5 92.9 95.8 96.1 98.0 101 103.2 106.1 106.6 Leather and products......... 73.8 68.0 70.0 71.2 73.5 71.7 81 .2 83.8 83.5 81 .5 83.4 84.2 83.4 Paper and printing............... 7.92 109.6 102.4 103.9 107.3 107.4 110.8 113.9 114.8 114.7 116.8 119.6 120.8 120.7 121.1 Paper and products........ 3.18 115.7 105.8 105.8 109.5 111.7 116.4 124.0 127.0 127.3 129 132.6 134.6 135. Printing and publishing., 4.74 105.5 100.2 102.6 105.9 104.4 107.1 107.1 106.5 106.2 108.5 110.8 111.5 110.9 111 .0 Chemicals, petroleum, and rubber.... 11.92 140.3 131.0 132.4 136.2 140.1 143.6 146.2 148.5 150 151.1 151.6 155.1 156.3 155.9 Chemicals and products................... 1. 143.2 132.8 135.7 138.2 143.4 146.3 148.8 152.5 155.2 156.3 156.8 159.8 160.6 161.0 Petroleum products........................... 1.80 124.5 120.2 118.5 122.4 124.6 126.7 127.1 126.5 126.8 128.7 123.6 125.7 127.5 129.6 Rubber and plastics products.......... 2.26 142.7 133.5 132.7 140.1 141 .6 147.8 152.0 153.1 151 .5 151 .2 156.0 162.4 164.3 Foods and tobacco. .. 9.48 124.5 122.5 122.4 123.5 124.8 125.2 126.0 126.3 128.0 129.4 130.3 129.5 129.1 129.6 Foods....................... 8.81 125.9 122.9 123.7 125.1 126.3 126.7 127.4 127.3 129.1 130.7 131.5 130.7 130.1 130.7 Tobacco products. .67 107.3 115.9 103.8 102.2 104.8 105.7 109.3 111 .9 113.7 109.9 114.1 115.8 Mining Metal, stone, and earth minerals., 1.26 109.8 113.3 106.2 101.5 105.0 107.2 107.2 108.0 110.0 108.2 112.1 113.7 113.9 114.4 Metal mining.............................. .51 121 .7 125.8 114.8 110.6 110.3 119.2 118.5 119.8 122.1 120.9 124.8 126.7 127.7 Stone and earth minerals......... .76 101 .7 104.7 100.4 95.3 101.4 98.9 99.5 100.0 101.7 99.6 103.6 104.9 104.8 Coal, oil, and gas............. 5.11 105.8 107.4 105.8 107.6 106.7 104.4 104.8 106.1 105.9 104.7 103.8 101.1 105.0 104.3 Coal................................ .69 113.8 112.2 113.6 120.4 120.6 105.7 113.6 114.6 119.9 107.8 109.4 115.0 126.4 119.4 Oil and gas extraction. 4.42 104.6 106.6 104.5 105.5 104.5 104.2 103.4 104.8 103.8 104.3 102.9 98.9 101.7 101.9 Utilities Electric., 3.90 164.7 164.2 163.0 163.3 164.S C165.9 167. 163.4 c165 .0 167.6 172.0 Gas........ 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 □ MAY 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonag­ utiliza­ Con­ ricul­ Period Products tion struc­ tural Total Whole­ Total in mfe. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales3 sumer com­ Total Mate­ Manu­ output tracts ment— ment modity Inter­ rials factur­ = 100) Total i Con­ Equip­ mediate ing Total sumer ment goods 1955....................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81 A 90.7 1957....................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84^3 93^3 1958....................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86^6 94*6 1959....................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87^3 94^8 1960....................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 70.2 82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 78.1 84.4 87.3 73.3 75 90.6 94.8 1963....................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964....................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965....................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 90 94.5 96.6 1966....................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968....................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 1969....................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970....................... 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 119 116.3 110.4 1971....................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 130 121.2 113.9 1972....................... 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 1973....................... 125.6 123.4 121 .3 131 .7 106.7 131 .1 129.3 125.2 83.0 179.5 116.8 103.2 149.2 160 133.1 134.7 1974....................... 124.8 123.1 121 .7 128.8 111 .7 128.3 127.4 124.4 78.9 169.7 119.1 102.1 157.1 171 147.7 160.1 1975...................... 113.8 115.7 115.5 124.0 103.6 116.3 110.6 112.2 68.7 166.0 116.9 91.4 151.0 186 161.2 174.9 1975—Mar........... 110.0 112.4 112.2 118.2 103.9 112.7 105.9 107.7 5 68.2 153.0 116.1 90.3 143.3 176 157.8 170.4 Apr........... 109.9 113.0 112.6 C119.7 103.0 113.4 105.2 107.9 189.0 116.1 89.9 144.7 179 158.6 172.1 May.......... 110.1 113.4 113.7 121.2 102.9 112.4 104.9 108.2 • 67.0 182.0 116.2 90.1 144.7 184 159.3 173.2 June.......... 111.1 114.2 114.5 123.3 102.2 112.8 106.0 109.5 174.0 115.9 89.8 146.4 186 160.6 173.7 July . , 112.2 115.3 115.7 125.5 102.2 114.3 106.8 110.6 165.0 116.4 89.7 148.7 190 162.3 175.7 Aug........... 114.2 115.8 115.9 125.7 102.3 115.4 111.5 112.8 ■ r69.0 208.0 116.9 90.9 154.2 191 162.8 176.7 Sept........... 116.2 116.9 116.9 126.8 102.8 116.6 115.1 114.7 157.0 117.4 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........... 117.6 118.0 117.9 128.9 102.5 118.5 116.8 116.3 • r70.7 148.0 117.8 92.4 158.9 192 165.6 178.2 Dec.r........ 118.4 119.3 119.0 130.2 103.5 120.3 116.8 117.0 137.0 118.1 93.0 162.3 198 166.3 178.7 1976—Jan.r........ 119.5 120.2 119.6 130.9 103.8 122.4 118.3 118.1 ] 183.0 118.7 94.0 165.9 197 166.7 179.3 Feb.r........ 120.8 121.3 120.8 132.1 105.0 123.4 120.2 119.8 \ *71.8 170.0 119.0 94.3 165.4 201 167.1 179.3 Mar.r.... 121.7 121.6 121.1 132.6 105.0 123.5 121.9 120.6 J 185.0 119.3 94.8 167.1 204 167.5 179.6 Apr............ 122.5 122.4 121.9 133.5 105.8 124.1 122.7 121.5 119.8 95.4 165.4 204 181.3 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Compiany, 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; 5 Figure is for first quarter 1975. includes data for Alaska and Hawaii beginning with 1959. Note.—All series: Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Dept, of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1975 1976 Type of ownership and 1974 1975 type of construction Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 'otal construction contracts 1......... 93,685 90,237 6,574 9,598 9,143 9,324 9,044 10,037 7,692 7,767 5,573 5,431 6,390 6,149 8,908 By type of ownership: Public............................................ 32,062 31,415 2,182 2,768 2,875 3,891 3,784 3,040 2,725 2,544 1,597 1,724 1,655 1,719 2,192 Private 1....................................... 61,623 58,822 4,393 6,830 6,268 5,432 5,260 6,997 4,967 5,223 3,976 3,708 4,734 4,430 6,716 By type of construction: Residential building 1............... 33,567 31,347 2,316 3,029 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233 2,157 2,546 3,618 Nonresidential building............ 33,131 30,301 2,402 2,987 2,877 3,169 3,165 2,666 2,526 2,629 1,859 1,865 1,939 1,996 2,561 26,987 28,313 1,856 3,582 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334 2,294 1,608 2,729 •rivate housing units authorized... 1,074 925 677 837 912 949 1,042 995 1,095 1,079 1,085 1,028 1,120 rl,134 1,156 (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

MAY 1976 □ CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 1 Nonresidential Period Conser­ Total d R en e t s i i a ­ l Buildings P U ub ti l l i ­ c Total M ta i r l y i­ H w ig ay h­ va a t n i d on Other Total In tr d i u al s­ m C e o r m cia ­ l b O u th il e d r ­ O i a t t n i h e d e s r de m ve e l n o t p­ ings 2 196 7 78,082 52,546 25.564 26,982 25,536 695 8,591 2,124 14,126 196 8 87,093 59,488 30.565 28,923 6,021 7,761 4,382 10,759 27,605 808 9,321 1,973 15,503 196 9 93,917 65,953 33,200 32,753 6,783 9,401 4,971 11,598 27,964 879 9,250 1,783 16,052 197 0 94,855 66,759 31,864 34,895 6,518 9,754 5,125 13,498 28,096 718 9,981 1,908 15,489 197 1 109,950 80.079 43.267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,085 93,901 54,288 39,613 4.676 13,464 5,898 15,575 30,184 1,087 10,429 2,172 16,496 197 3 135,953 103,444 57,635 45,809 6,243 15,453 5,888 18,225 32,509 1,170 10,506 2,313 18,520 197 4 135,481 97.079 47,044 50,035 7,902 15,945 5,797 20,391 38,402 1,185 12,083 2,782 22,352 197 5 130,779 89,897 42,880 47,017 7,847 12,810 5,587 20.773 40,882 1,396 1975—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.. 128,977 88,344 43.267 c45,077 7,714 11,978 5,319 20,066 40,633 1,309 12,536 3,417 23,371 Aug.. 132.144 90,633 45,271 c45,362 7.621 12.586 5.611 19.544 41.511 1,383 13.164 3,387 23,577 Sept.. 137,551 92,973 46.125 c46,848 7,889 12.431 5.843 20,685 44^578 1,662 14,152 3,442 25,322 Oct... 135,805 93,419 47.080 c46,339 7,470 12,506 5,589 20.774 42,386 1,493 14,076 3,194 23,623 Nov.. 138,047 96,029 48, 324 c47,705 7,750 12,634 5,771 21,550 42,018 1,661 r12,497 '3,554 24,306 Dec... 137,987 96,526 49,133 47,393 7,548 12.401 5.611 21,833 41,461 1.561 13.590 3,858 22,452 1976—Jan. r. 134,335 97,032 48,964 48,068 7,464 11,854 5,764 22,986 37,303 1 ,534 Feb... 134.144 99,328 49,557 49,771 8,168 13,152 6:363 22,088 34,816 1,670 Mar.p 139,543 101,527 52,024 49.503 7,657 13.070 5,919 22,857 38,016 1,505 1 Data beginning Jan. 1976 are not strictly comparable with prior data 2 Includes religious, educational, hospital, institutional, and other build­ because of change by Census Bureau in its procedure for estimating con­ ings. struction outlays of State and local governments. Such governments accounted for 86 per cent of all public construction expenditures in 1974. Note.—Census Bureau data; monthly series at seasonally adjusted annual rates. PRIVATE HOUSING ACTIVITY (In thousands of units) Starts Completions Under construction New 1-family homes sold (end of period) and for sale i Median prices Units (in thousands Mobile of dollars) of Period home units 1- 2-or- 1- 2-or- 1- 2-o r- 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 1,320 859 461 318 490 218 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 1,189 516 673 329 501 407 35.9 36.2 1975............................................ 1,161 892 268 1,295 866 430 1,005 532 473 216 383 1975—Mar................................ 986 763 223 1,314 757 557 1,118 521 598 199 466 395 38.8 36.5 Apr................................. 982 774 208 1,244 782 462 1,087 515 573 194 556 388 39.2 36.7 May............................... 1,085 853 232 1,269 827 442 1,060 513 546 224 554 383 39.5 36.9 June............................... 1,080 874 206 1,202 808 394 1,045 517 528 210 551 379 37.9 37.2 July................................ 1,207 916 291 1,261 882 379 1,039 521 518 225 548 381 38.6 37.4 Aug................................ 1,264 979 285 1,267 880 387 1,036 528 507 235 573 378 38.2 37.8 Sept................................ 1,304 966 338 1,315 969 346 1 ,037 532 505 215 571 384 39.7 38.2 Oct.................................. 1,431 1,093 338 1,115 738 377 1,061 560 504 229 610 389 40.7 38.4 Nov.r............................ 1,381 1,048 333 1,386 992 394 1,037 555 482 232 660 381 41.1 38.6 Dec.r............................. 1,283 962 321 1,329 993 336 1,038 559 479 228 642 378 42.2 38.9 1976—Jan.r.............................. 1,236 957 279 1,211 924 287 1,043 563 480 263 563 383 41.8 39.1 Feb................................. 1,562 1,297 265 1,270 933 337 1,059 586 473 287 646 390 43.0 39.3 Mar.p............................. 1,444 1,135 309 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 □ MAY 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T ( o s o N t p t i a t . u S u l l a t . n A i t o o i . n o n ) n a - l la ( b N N o . r o S t . f A i o n r . ) ce ( T l f a S o o b . r A t o c a e r . l ) Total Total E In m c u n p l o t l n u o a r y a g e l r d i­ 1 In U pl n o e y m ed ­ U (p n e m e r S r m a . e A t c n p e e . 2 t ) l 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 79,120 75,732 3,387 4,993 5.9 1972............................. 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973............................. 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1974............................. 150,827 57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 1975............................. 153,449 58,655 94,793 92,613 84,783 81,403 3,380 7,830 8.5 1975—Apr.................. 152,840 59,276 94,449 92,254 84,313 81,012 3,301 7,941 8.6 May................. 153,051 59,101 94,950 92,769 84,519 80,991 3,528 8,250 8.9 June................. 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.................. 153,824 57,331 95,397 93,212 85,288 81,824 3,464 7,924 8.5 Sept................. 154,052 59,087 95,298 93,128 85,158 81,646 3,512 7,970 8.6 Oct................... 154,256 58,825 95,377 93,213 85,151 81,743 3,408 8,062 8.6 Nov................. 154,476 59,533 95,272 93,117 85,178 81,877 3,301 7,939 8.5 Dec.................. 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 Mar................. 155,325 60,065 95,866 93,719 86,692 83,513 3,179 7,027 7.5 Apr.................. 155,516 59,898 96,583 94,439 87,399 83,982 3,417 7,040 7.5 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ Tr ti a p o n u n s b p a l o i n c r d ta ­ Trade Finance Service G m ov e e n r t n­ utilities 70,920 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—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..................................................... 78,179 18,722 764 3,428 4,494 17,233 4,266 14,307 14,965 Feb.................................................... 78,368 18,763 763 3,375 4,517 17,326 4,266 14,360 14,998 Mar.®............................................... 78,545 18,852 770 3,355 4,493 17,371 4,276 14,411 15,017 Apr.33................................................ 78,888 18,956 774 3,385 4,497 17,429 4,300 14,466 15,081 not seasonally adjusted 1975—Apr.................................................... 76,177 18,000 726 3,310 4,472 16,691 4,192 13,878 14,908 76,689 18,071 740 3,439 4,487 16,819 4,208 13,986 14,939 77,183 18,255 756 3,555 4,523 16,971 4,248 14,079 14,796 July................................................... 76,439 18,007 758 3,605 4,504 16,936 4,266 14,144 14,219 Aug................................................... 76,900 18,450 763 3,688 4,493 16,959 4,273 14,162 14,112 Sept................................................... 77,614 18,694 758 3,659 4,503 17,084 4,243 14,113 14,560 Oct.................................................... 78,193 18,687 763 3,620 4,503 17,136 4,238 14,185 15,061 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.................................................... 77,091 18,495 756 3,061 4,440 17,026 4,223 14,049 15,041 Feb.................................................... 77,339 18,545 752 3,014 4,445 16,926 4,228 14,188 15,241 Mar.p............................................... 77,827 18,658 759 3,093 4,457 17,014 4,246 14,296 15,304 Apr.35................................................ 78,617 18,798 768 3,256 4,461 17,282 4,283 14,466 15,303 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

MAY 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 d e l l l tr e G a i l n c e a i c d s t ­ y o n F p i a n i e u n s g r h d r s a ­ ­ ­ A u p p a p k n a e d e r p el T p t o r i a r o n t n a s ­ ­ Total M c i a c e a r d e l ­ s P c o a e n r r a e ­ l r R e a i e c n n a r g d e d a ­ ­ g O s a o e t n o r h v d d e ­ r s tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62 4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87^3 87^8 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6* 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973............................ 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974............................ 147.7 161.7 150.6 130.6 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 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—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 Feb................. 167.1 180.0 173.8 142.1 188.6 249.4 181.9 165.2 144.0 158.5 159.7 178.8 157.0 148.5 151.3 Mar................ 167.5 178.7 174.5 142.7 188.7 247.6 183.7 166.6 145.0 159.8 160.6 180.6 157.4 149.0 151.8 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 com­ Farm cessed Ma­ Period m ti o e d s i­ p u r c o t d s ­ f f o a ee o n d d d s s Total t T e il t e e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b et u e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s t , . ­ e c m a q e h n e r u i y n n d ip t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i ­ s c ­ ­ T e m p t q r o i e o a u r n n n i t p a s t1 ­ ­ ­n c M e e o l i l u s a ­ s ­ 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 1965 ......................... 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966......................... 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968......................... 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969......................... 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970......................... 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971......................... 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972......................... 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973......................... 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974......................... 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171 .9 139.4 127.9 153.2 125.5 133.1 1975 ......................... 174.9 186.7 182.6 171.5 137.9 148.5 245.1 181.3 150.2 176.9 170.4 185.9 161.4 139.7 174.0 141.5 147.7 1975—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................ r179.3 192.8 179.4 177.3 145.1 157.5 257.3 184.2 152.4 190.5 174.8 rl 87.7 167.0 143.1 181.1 148.7 151.8 Feb............... rl 79.3 191.0 176.4 r178.0 146.3 159.9 255.7 184.9 154.2 196.0 175.8 '•189.2 167.7 143.4 181.3 148.8 152.1 Mar.............. '•179.6 187.2 175.8 rl 78.9 146.7 162.0 255.7 185.6 155.5 202.3 176.9 '•190.6 168.2 143.9 182.5 149.1 152.6 Apr.............. 181.3 192.9 178.0 180.0 147.4 165.4 256.9 187.1 •156.7 203.3 178.5 192.9 168.9 144.C 185.2 149.2 i152.4 i Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME □ MAY 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 I II III IV Ip 286.2 982.41,171.11,306.31,406.91,498.91,433.61,460.61,528.51,572.91,616.3 279.4 978.61,161.71,288.81,397.21,513.5 1,458.41,490.2 1,530.61,574.9 1,602.2 Personal consumption expenditures................................ 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 977.41,001.01,028.7 30.8 84.9 111.2 122.9 121.9 128.1 118.9 123.8 131.8 137.6 146.5 98.2 264.7 299.3 334.4 375.7 409.8 394.1 404.8 416.4 423.7 431.0 63.0 269.1 322.4 351.3 388.3 426.0 413.4 421.6 429.2 439.7 451.2 Gross private domestic investment.................................. 53.8 140.8 188.3 220.5 212.2 182.6 168.7 161.4 194.9 205.4 229.6 47.0 137.0 178.8 203.0 202.5 197.3 193.5 191.1 197.1 207.4 215.5 27.1 100.5 116.8 136.5 147.9 148.5 149.3 146.1 146.7 151.9 156.8 9.3 37.7 42.5 49.0 54.4 52.7 54.9 51.1 51.2 53.6 55.2 Producers’ durable equipment............................ 17.8 62.8 74.3 87.5 93.5 95.8 94.4 95.0 95.6 98.3 101.7 19.9 36.6 62.0 66.5 54.6 48.7 44.2 45.0 50.4 55.4 58.7 18.7 35.1 60.3 64.7 52.2 46.8 42.6 43.1 48.2 53.3 56.5 Change in business inventories.................................. 6.8 3.8 9.4 17.5 9.7 -14.6 -24.8 -29.6 -2.1 -2.0 14.1 6.0 3.7 8.8 14.1 11.6 -16.5 -23.3 -29.6 -5.7 -7.5 10.1 1.9 3.9 -3.3 7.4 7.7 21.3 17.3 24.2 22.1 21.7 9.7 13.9 62.5 72.7 101.5 144.2 147.8 148.2 140.7 148.5 153.8 151.3 12.0 58.5 75.9 94.2 136.5 126.5 130.9 116.4 126.4 132.1 141.7 Government purchases oi goods and services.................. 38.5 218.9 253.1 269.9 301.1 331.2 321.2 324.7 334.1 344.8 348.4 18.7 95.6 102.1 102.0 111.7 123.2 119.4 119.2 124.2 129.9 131.2 14.0 73.5 73.5 73.4 77.4 84.0 81.4 82.1 84.9 87.4 87.0 4.7 22.1 28.6 28.6 34.3 39.2 38.0 37.1 39.3 42.5 44.1 19.8 123.2 151.0 168.0 189.4 208.0 201.9 205.5 209.9 214.8 217.2 Gross national product in 1972 dollars........................... 533.51,075.31,171.11,233.41,210.71,186.1 1,158.61,168.11,201.51,216.21,238.4 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) 1975 1976 Item 1950 1970 1972 1973 1974 1975 I II III IV Ip National income............................................................ 236.2 798.4 951.91,067.31,141.11,208.11,155.21,180.81,232.51,262.6 C1o5m4.p8ensa6t0io9n. 2of e7m1p5l.o1yees7..9..7....7......8...7.3....0.......9..2..1....4.......8..9.7.1 905.4 928.2 955.1 982.2 Wages and salaries..................................................... 147.0 546.5 633.8 700.9 763.1 801.6 781.0 787.6 807.3 830.7 856.1 124.4 430.5 496.2 552.3 603.0 627.3 611.7 615.0 631.9 650.5 668.5 Military................................................................... 5.3 20.7 22.0 22.1 22.3 23.0 22.9 22.8 22.8 23.6 23.6 17.4 95.3 115.6 126.5 137.7 151.3 146.4 149.7 152.6 156.5 159.0 Supplements to wages and salaries.............................. 7.8 62.7 81.4 96.8 110.0 119.8 116.1 117.8 120.9 124.4 131.1 Employer contributions for social insurance.......... 4.2 30.7 39.4 49.3 55.5 58.5 57.1 57.5 58.9 60.6 65.0 Other labor income................................................ 3.7 32.0 42.0 47.5 54.5 61.3 59.0 60.3 62.0 63.8 66.1 Proprietors’ income with inventory valuation and 38.4 65.1 76.1 91.7 85.1 83.3 79.6 78.6 88.0 87.1 84.9 Business and professional....................................... 24.9 51.2 58.1 59.3 59.5 58.7 58.6 58.5 58.7 58.9 59.6 Farm....................................................................... 13.5 13.9 18.0 32.4 25.6 24.6 21.0 20.1 29.3 28.2 25.3 Rental income oi persons with capital consumption adjustment........................................................... 7.1 18.6 21.5 21.3 21.0 21.1 20.8 20.5 20.9 22.0 22.7 Corporate profits and inventory valuation adjustment and without capital consumption adjustment................ 37.6 66.4 89.6 98.6 93.6 106.3 83.4 101.6 119.6 119.3 Profits before tax........................................................ 42.6 71.5 96.2 117.0 132.1 117.1 97.1 108.2 129.5 132.4 Profits tax liability................................................. 17.9 34.5 41.5 48.2 52.6 45.7 37.5 41.6 50.7 52.5 Profits after tax....................................................... 24.7 37.0 54.6 68.8 79.5 71.4 59.6 66.6 78.8 79.9 Dividends............................................................ 8.8 22.9 24.6 27.8 31.1 32.8 32.1 32.6 33.5 33.1 Undistributed profits.......................................... 15.9 14.1 30.0 40.9 48.4 38.6 27.5 34.0 45.3 46.8 Inventory valuation adjustment................................. -5.0 -5.1 -6.6 -18.4 -38.5 -10.8 -13.7 -6.6 -9.9 -13.1 -11.0 -4.0 1.5 2.5 1.6 -2.3 -5.7 -4.5 -5.0 -6.5 -6.6 -7.6 Net interest.................................................................... 2.3 37.5 47.0 56.3 70.0 81.6 78.7 79.7 82.2 85.7 89.2 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

MAY 1976 □ NATIONAL PRODUCT AND INCOME A55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 I II III IV Ip Gross national product................................................... 286.2 982.41,171.11,306.31,406.91,498.91,433.61,460.61,528.51,572.91,616.3 Less: Capital consumption allowances with capital consumption adjustment................................. 23.9 90.8 105.4 117.1 134.0 152.0 145.4 149.5 154.7 158.5 163.1 Indirect business tax and nontax liability............. 23.4 94.0 111.0 120.2 127.3 137.3 131.6 135.2 140.0 142.2 142.6 Business transfer payments................................. .8 4.0 4.7 5.2 5.8 6.3 6.2 6.3 6.4 6.5 6.6 Statistical discrepancy.......................................... 2.0 -2.1 1.7 .4 -.6 -2.9 -3.2 -8.9 -3.2 5.0 Plus: Subsidies less current surplus of government enterprises........................................................ .1 2.7 3.6 3.7 .7 1.9 1.6 2.2 1.9 1.9 -.1 Equals: National income............................................... 236.2 798.4 951.91,067.31,141.1 1,208.1 1,155.21,180.81,232.51,262.6 Less: Corporate profits with inventory valuation and capital consumption adjustments.................... 33.7 67.9 92.1 100.2 91.3 100.7 78.9 96.6 113.1 112.7 Net interest.......................................................... 2.3 37.5 47.0 56.3 70.7 81.6 78.7 79.7 82.2 85.7 89.2 Contributions for social insurance...................... 7.1 58.7 73.6 91.5 102.9 108.3 106.0 106.6 108.9 111.8 118.4 Wage accruals less disbursements....................... -.1 — .5 Plus: Government transfer payments to persons. 14.4 75.9 99.4 113.5 134.5 168.7 157.7 169.4 172.4 175.2 181.3 Personal interest income............................. 8.9 64.3 74.6 88.4 106.5 120.5 116.0 117.6 121.2 127.4 131.7 Dividends................................................... 8.8 22.9 24.6 27.8 31.1 32.8 32.1 32.6 33.5 33.1 33.3 Business transfer payments........................ .8 4.0 4.7 5.2 5.8 6.3 6.2 6.3 6.4 6.5 6.6 Equals: Personal income.......................... 226.1 801.3 942.51,054.31,154.71,245.91,203.61,223.81,261.71,294.51,324.4 Less: Personal tax and nontax payments. 20.6 115.3 141.2 151.2 171.2 169.2 179.6 142.1 174.6 180.5 184.4 Equals: Disposable personal income......... 205.5 685.9 801.3 903.1 983.61,076.71,024.01,081.71,087.1 1,114.01,140.0 Less: Personal outlays.................................. 194.7 635.4 751.9 830.4 909.5 987.8 950.4 974.21,001.3 1,025.4 1,053.0 Personal consumption expenditures. 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 977.4 1,001.01,028.7 Interest paid by consumer to business. 2.3 15.5 17.9 20.6 22.6 23.1 23.0 22.8 23.0 23.4 23.9 Personal transferr ipayments to foreigners (Net) .4 1.1 1.0 1.2 1.0 1.0 1.0 1.1 .9 1.0 1.0 Equals: Personal saving. 10.8 50.6 49.4 72.7 74.0 88.9 73.6 107.5 85.9 88.6 86.3 Disposable personal income in (1972) dollars. 361.9 741.6 801.3 856.0 843.5 856.7 831.6 869.8 858.2 867.3 879.6 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 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.® Total personal income........................ 1154.71245.91205.01209.01217.21245.21244.01262.41278.71287.41295.91300.21313.61325.91333.5 “Wage and salary disbursements.......... 763.6 801.6 781.7 782.7 787.4 792.7 797.4 808.8 815.6 824.1 831.2 836.8 846.0 851.6 855.8 Commodity-producing industries... 273.7 273.6 265.9 265.8 267.0 268.8 270.9 275.6 279.5 281.7 283.2 286.9 291.2 293.0 295.0 Manufacturing only..................... 211.2 211.2 204.4 204.9 205.6 207.2 208.8 213.2 216.6 218.7 219.7 223.3 226.9 228.4 230.4 Distributive industries.................... 184.3 195.1 190.7 190.9 191.7 192.9 193.9 197.7 198.2 200.2 202.4 202.9 205.8 207.2 207.8 Service industries........................... 145.0 158.6 154.6 154.5 156.1 157.4 158.2 160.3 161.5 163.1 165.3 165.7 167.1 168.8 169.6 Government................................... 160.6 174.3 170.5 171.5 172.6 173.6 174.4 175.2 176.4 179.0 180.3 181.2 181.9 182.6 183.4 Other labor income........................... 54.5 61.3 59.4 59.8 60.3 60.8 61.4 62.0 62.6 63.2 63.8 64.4 65.2 66.1 67.0 Proprietors’ income with inventory valuation and capital consumption adjustments..................................... 85.1 83.3 76.5 77.0 78.7 80.3 84.5 88.0 91.5 89.4 87.1 84.7 84.7 85.0 84.9 Business and professional............... 59.5 58.7 58.6 58.5 58.6 58.6 58.7 58.7 58.8 58.9 58.8 58.9 59.1 59.7 59.9 Farm.............................................. 25.6 24.6 17.9 18.5 20.1 21.7 25.8 29.3 32.7 30.5 28.3 25.8 25.6 25.3 25.0 Rental income of persons with capital consumption adjustment................ 21.0 21.1 20.8 20.7 20.5 20.2 20.5 21.0 21.3 21.8 22.0 22.2 22.5 22.7 22.9 Dividends.......................................... 31.1 32.8 32.1 32.4 32.6 32.9 33.2 33.5 33.9 33.8 33.8 31.7 33.4 33.3 33.2 Personal interest income.................... 106.5 120.5 116.1 116.6 117.5 118.6 119.7 121.2 122.9 125.1 127.9 129.0 130.4 131.8 132.9 Transfer payments............................. 140.4 175.0 167.2 168.6 169.3 189.0 176.8 178.1 181.3 180.6 181.4 182.9 184.7 188.9 190.2 Less: Personal contributions for social! insurance................................. 47.4 49.8 48.9 48.9 49.1 49.3 49.5 50.0 50.4 50.7 51.2 51.6 53.3 53.4 53.5 Nonagricultural income...................... 1119.11210.21176.21179.71186.21212.51207.21222.11234.81245.61256.31262.91276.31288.91296.7 Agricultural income............................ 35.6 35.7 28.8 29.3 31.0 32.7 36.8 40.3 43.9 41.8 39.7 37.3 37.3 37.1 36.8 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 □ MAY 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 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 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 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 9 Private domestic nonfinancial sectors....... 62.7 6.45 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 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 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 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 77.1 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 Total funds raised by financial sectors..................... 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....................... 3.3 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 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 REIT’s.............................................................. .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 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 Flovr of Funds Section, Division of Research and Statistics, Board of Digitized for FRASanEnRua lly for flows and for amounts outstanding, may be obtained from Governors of the Federal Reserve System, Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ FLOW OF FU 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 1973 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 2 3 U.S. Government securities................................. 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.6 17.2 28.3 6.2 3 4 Residential mortgages...................................... 2.8 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.8 17.0 16.3 17.8 4 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 5 6 Other loans and securities................................... 4.8 4.9 5.1 6.3 5.2 4.9 4.6 7.5 20.1 4.2 3.4 5.1 6 By agency— 7 U.S. Government................................................. 4.9 4.6 4.9 2.9 2.8 3.2 2.6 3.0 7.4 10.6 10.9 10.2 7 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 8 9 Monetary authorities............................................ 3.5 4.8 3.7 4.2 5.0 8.9 .3 9.2 6.2 8.5 7.0 10.1 9 10 Foreign................................................................. -1.6 2.0 .3 -.3 10.3 26.4 8.4 .7 11.6 3.9 10.9 -3.0 10 11 Agency borrowing not included in line 1................ 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 10.3 9.1 11.6 11 Private domestic funds advanced 12 Total net advances.................................................... 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 149.1 163.4 141.3 185.6 12 13 U.S. Government securities................................. 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 2.4.9 78.1 63.5 92.8 13 14 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 14 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 15 16 Residential mortgages.......................................... 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.6 22.4 19.1 25.7 16 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 17 18 Less: FHLB advances.......................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -3.9 -8.1 .2 18 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 19 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 20 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 21 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 22 23 Other finance....................................................... 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.7 -.6 -.1 -1.0 23 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....................................................... 19.8 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 13.8 4.4 2.9 16.5 20.2 4.4 1.7 -1.8 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. 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 114.5 141.1 132.9 149.2 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 47 48 Private financial intermediation (in per cent).... 75.9 93.2 86.4 68.3 103.1 112.8 104.5 95.4 88.2 74.5 81.6 69.1 48 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 49 Corporate equities not included above 1 Total net issues......................................................... 4.8 5.5 6.4 10.0 10.4 14.8 12.9 8.0 5.6 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 plus 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 Lines 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 □ MAY 1976 1. U.S. BALANCE OF PAYMENTS SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.) 1974 1975 Line Credits (+), debits (—) 1973 1974 1975 IV I II III I Vp 1 Merchandise trade balance i................................................... 955 -5,277 9,045 -1,380 1,495 3,274 2,111 2,165 2 Exports............................................................................ 71,379 98,309 107,184 26,593 27,056 25,843 26,596 27,689 3 Imports............................................................................ -70,424 -103,568 -98,139 -27,973 -25,561 -22,569 -24,485 -25,524 4 Military transactions, net........................................................ -2,317 -2,158 -819 -498 -354 -409 -50 -5 5 Travel and transportation, net................................................ -2,862 -2,692 -1,968 -741 -545 -370 -481 -573 6 Investment income, net 2........................................................ 5,179 10,121 6,030 2,559 1,185 1,400 1,773 1,672 7 U.S. direct investments abroad 2.................................... 8,841 17,679 9,140 4,080 2,158 2,172 2,428 2,382 8 Other U.S. investments abroad........................................ 5,157 8,389 8,735 2,358 2,148 2,075 2,248 2,264 9 Foreign investments in the United States 2.................... -8,819 -15,946 -11,845 -3,879 3,121 -2,847 -2,903 -2,974 10 3,222 3,830 4,211 1,049 1,092 1,041 1,120 959 11 Balance on goods and services 3..................................................... 4,177 3,825 16,500 989 2,873 4,936 4,473 4,218 2,348 4,243 5,214 1,739 5 304 12 Remittances, pensions, and other transfers............................... -1,903 -1,721 -1,763 -439 -448 -462 -423 -432 13 Balance on goods, services, and remittances................................... 2,274 2,104 14,736 550 2,425 4,474 4,050 3,786 1,904 3,825 4,742 1,302 4 867 14 U.S. Government grants (excluding military)......................... -1,938 4-5,461 -2,820 -649 -727 -721 -604 -769 15 3354-3,357 11,916 -99 1,698 3,753 3,446 3,017 1,289 3,088 3,953 744 4,131 16 U.S. Government capital flows excluding nonscheduled repayments, net 5................................................................ -2,933 4 408 -3,500 -985 -1,015 -821 -111 -946 17 Nonscheduled repayments of U.S. Government assets........... 289 1 * * * 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies........................................................ 1,154 710 1,774 125 546 471 240 516 19 Long-term private capital flows, net....................................... 177 -8,463 -8,789 -5,570 -2,206 -2,421 -1,573 -2,591 20 U.S. direct investments abroad........................................ -4,968 -7,455 -5,760 -3,310 -1,041 -2,304 -650 -1,765 21 Foreign direct investments in the United States 6........... 2,656 2,224 1,934 -653 340 679 -94 1,008 22 -759 -1,990 -6,328 -726 -2,021 -1,001 -946 -2,361 23 U.S. securities other than Treasury issues 6.................... 4,055 672 3,899 -663 653 678 1,033 1,535 24 Other, reported by U.S. banks........................................ -706 -1,166 -2,608 -285 -451 -649 -702 -806 25 Other, reported by U.S. nonbanking concerns................ -101 -748 74 67 314 176 -214 -202 26 Balance on current account and long-term capital 5........................ -977 -10,702 1,401 -6,529 -977 982 1,396 -4 Not seasonally adjusted............................................................ -4,616 -128 1,106 —1,205 1,628 27 Nonliquid short-term private capital flows, net...................... -4,238 -12,936 -2,819 -2,305 1,949 -966 -1,893 -1,909 28 Claims reported by U.S. banks........................................ -3,886 -12,173 -1,913 -2,406 1,724 -1,004 -1,126 -1,507 29 Claims reported by U.S. nonbanking concerns............... -1,183 -2,603 -911 -137 279 -167 -709 -314 30 Liabilities reported by U.S. nonbanking concerns........... 831 1,840 5 238 -54 205 -58 -88 31 Allocations of Special Drawing Rights (SDR’s)..................... 32 -2,436 4,698 4,556 1,236 2,485 446 936 690 33 Net liquidity balance....................................................................... -7,651 -18,940 3,138 -7,598 3,457 462 439 -1,223 — 6,475 4,527 247 —1,345 —291 34 Liquid private capital flows, net............................................. 2,343 10,543 -5,601 2,730 -6,623 -2,232 4,569 -1,315 35 -1,951 -6,267 -9,200 -2,101 -4,796 -2,331 435 -2,508 36 Reported by U.S. banks........................................... -1,161 -6,134 -8,933 -1,732 -5,062 -2,413 937 -2,395 37 Reported by U.S. nonbanking concerns.................. -790 -133 -267 -369 266 82 -502 -113 38 4,294 16,810 3,599 4,831 -1,827 99 4,134 1,193 39 Foreign commercial banks....................................... 3,028 12,621 -501 2,730 -2,808 18 2,572 -283 40 International and regional organizations.................. 377 1,319 2,277 1,308 877 -182 971 611 41 Other foreigners....................................................... 889 2,870 1,823 793 104 263 -591 -865 42 Official reserve transactions balance, financed by changes in—....... -5,308 -8,397 -2,463 -4,868 -3,166 -1,770 5,008 -2,538 Not seasonally adjusted............................................................ -4,070 -2,194 -1,415 —3,064 —1,918 43 Liquid liabilities to foreign official agencies........................... 4,456 8,503 1,007 3,886 2,686 1,394 -4,962 1,892 44 Other readily marketable liabilities to foreign official agen­ cies 7.................................................................................... 1,118 673 2,072 630 811 406 297 558 45 Nonliquid liabilities to foreign official reserve agencies re- -475 655 -9 215 —6 -1 -1 -1 46 209 -1,434 -607 137 -325 -29 -342 89 47 Gold ................................................................................. 48 SDR’s.............................................................................. 9 -172 -66 -20 -4 -16 -25 -21 49 233 3 -75 241 -14 -6 -222 167 50 Gold tranche position in IMF........................................ -33 -1,265 -466 -84 -307 -7 -95 -57 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................ 2,809 1,811 2,287 490 787 1,244 66 190 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)........................... 8,124 7,508 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)................................. 945 1,554 Balances excluding allocations of SDR’s: 54 Net liquidity, not seasonally adjusted................................ -7,651 -18,940 3,138 -6,475 4,527 247 -1,345 -291 55 -5,308 -8,397 -2,463 -4,070 -2,194 -1,415 3,064 -1,918 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 q FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Imports 2 Trade balance 1973 1974 1975 r 1976 1973 19743 1975 1976 1973 19743 1975 1976 Month: Jan__ 4,955 7,150 9,373 9,103 5,244 6,498 9,635 9,176 -289 +652 -262 -73 Feb.. . 5,070 7,549 8,755 8,800 5,483 7,318 7,928 8,941 -413 +231 +827 -141 Mar... 5,311 7,625 8,685 8,956 5,414 7,742 7,466 9,6 07 -103 -117 + 1,219 -651 Apr... 5,494 8,108 8,648 5,360 8,025 7,959 + 133 +83 +689 May.. 5,561 7,652 8,222 5,703 8,265 7,266 -142 -612 +955 June.. 5,728 8,317 8,716 5,775 8,577 7,104 -47 -260 + 1,613 July... 5,865 8,307 8,894 5,829 8,922 7,832 +37 -615 + 1,062 Aug... 6,042 8,379 8,979 6,011 9,267 7,877 +32 -888 + 1,102 Sept... 6,420 8,399 9,146 5,644 8,696 8,205 +776 -297 +941 Oct.. . 6,585 8,673 9,225 5,996 8,773 8,170 +589 -100 + 1,054 Nov... 6,879 8,973 9,409 6,684 8,973 8,204 + 195 + 1,206 Dec... 6,949 8,862 9,250 6,291 9,257 8,526 +658 -395 +724 Quarter: I 15,336 22,325 26,813 26,859 16,140 21,558 25,030 27,723 -804 +767 + 1,784 -864 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) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo C e u c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i n e t F r io v n e SDR’s 3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo e u C c r r r o i e t r e i i e n b s g n ­ l n e ­ p R o I e M s s i i n e t r F io v n e SDR’s 3 1961... 18,753 16,947 16,889 116 1,690 1975- 1962... 17,220 16,057 15,978 99 1,064 16,183 11,620 11,620 2 2,168 2,393 1963... 16,843 15,596 15,513 212 1,035 May .... 16,280 11,620 11,620 4 2,218 2,438 1964... 16,672 15,471 15,388 432 769 June___ 16,242 11,620 11,620 25 2,179 2,418 July___ 16,084 11,618 11,618 2 2,135 2,329 1965... 15,450 13,806 13,733 781 863 Aug....... 16,117 11,599 11,599 28 2,169 2,321 1966... 14,882 13,235 13,159 1,321 326 Sept...... 16,291 11,599 11,599 247 2,144 2,301 1967.. . 14,830 12,065 11,982 2,345 420 Oct........ 16,569 11,599 11.599 413 2,192 2,365 1968... 15,710 10,892 10.367 3,528 1,290 Nov...... 16,592 11,599 11.599 423 2,234 2,336 1969.. . 416,964 11,859 10.367 42,781 2,324 16,226 11,599 11,599 80 2,212 2,335 1970... 14,487 11,072 10,732 629 1,935 851 1976— 1971... 512,167 10,206 10,132 5 276 585 1,100 16,622 11,599 11,599 333 2,314 2,376 19726. . 13,151 10,487 10,410 241 465 1,958 Feb 16,661 11,599 11,599 296 2,390 2,376 19737 . . 14,378 11,652 11,567 8 552 2,166 16,941 11,599 11,559 571 2,420 2,351 1974. . . 15,883 11,652 11,652 5 1,852 2,374 817,438 11,599 11,599 936 8 2,578 82,325 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 Apr. amounted to $2,435 million, reserve position in IMF, $2,690 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $17,660. 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 ft. 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 □ MAY 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 geria 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 25,865 191 140 239 707 1,470 791 82 65 '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 '152 281 791 1,638 834 87 69 '92 1973. 49,850 6.478 11.652 31,720 231 169 312 881 1,781 927 97 77 103 1974. '49,800 6.478 11.652 '31,670 231 169 312 882 1,781 927 97 76 103 1975—Apr.. 6.478 11,620 231 169 312 882 1,781 927 97 76 103 May. 6.478 11,620 231 169 312 882 1,781 927 97 76 103 June. '49,760 6.478 11,620 '31,660 231 169 312 882 1,781 927 97 76 103 July.. 6.478 11,618 231 169 312 882 1,781 927 97 76 103 Aug.. 6.478 11.599 231 169 312 882 1,781 927 97 76 103 Sept.. 49,750 6.478 11.599 31,675 231 169 312 882 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.. ’49^740' 6.478 11.599 31,665 231 169 312 882 1,781 927 97 76 103 1976—Jan.... 6.478 11.599 231 169 312 882 1,781 927 97 76 Feb.... 6.478 11.599 231 312 882 1 ,781 927 97 76 Mar.p. 49,470 6.478 11.599 31,395 231 312 882 1,781 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 4,966 152 293 158 173 3,483 891 148 389 103 154 2,294 1975—Apr............... 4,262 4,966 153 293 158 173 3,483 891 154 389 103 154 2,294 May.............. 4,262 4,966 153 293 158 173 3,483 891 175 389 103 154 2,294 June............. 4,262 4,966 153 293 158 173 3,483 891 154 389, 103 154 2,294 July.............. 4,262 4,966 153 293 158 173 3,483 891 154 389 103 154 2,294 Aug............... 4,262 4,966 153 293 158 173 3,483 891 154 389 103 154 2,294 Sept.............. 4,262 4,966 153 293 158 173 3,483 891 160 389 103 154 2,294 Oct................ 4,262 4,966 153 293 158 173 3,483 891 160 389 103 154 2,294 4,262 4,966 153 293 158 173 3,483 891 160 389 103 154 2,294 Dec............... 4,262 4,966 153 293 158 173 3,483 891 169 389 103 154 2,294 1976—Jan................ 4,262 4,966 153 293 158 173 3,483 891 169 389 103 2,294 Feb............... 4,262 4,966 153 158 173 3,483 891 '176 103 2,294 Mar.27........... 4,262 4,966 153 173 3,483 891 176 103 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 ments 2 1970........................ 54 902 119 666 498 200 2,732 82 126 1,348 162 384 -282 1971'...................... 55 921 108 410 498 200 2,909 82 130 777 148 391 310 1972........................ 60 1,021 117 '681 541 217 3,158 89 136 801 133 425 218 1973........................ 67 1,163 129 802 602 244 3,513 99 151 887 148 472 235 1974........................ 67 '1,175 129 771 602 244 3,513 99 151 888 148 472 250 1975—Apr............... 67 1,175 129 747 602 244 3,513 99 151 888 148 472 260 67 1,175 129 742 602 244 3,513 99 151 888 148 472 239 June............. 67 1,175 129 '744 602 244 3,513 99 151 888 148 472 262 July.............. 67 1,175 129 742 602 244 3,513 99 151 888 135 472 264 Aug............... 67 1,175 129 744 602 244 3,513 99 151 888 135 472 264 Sept.............. 67 1,175 129 762 602 244 3,513 99 151 888 135 472 254 Oct................ 67 1,175 129 754 602 244 3,513 99 151 888 135 472 256 Nov.............. 67 1,175 129 752 602 244 3,513 99 151 888 135 472 259 Dec............... 67 '1,170 129 749 602 244 3,513 99 151 888 135 472 246 1976—jan................ 67 '1,170 129 753 602 244 3,513 99 151 135 472 213 Feb............... 67 1,170 129 749 602 244 3,513 99 151 472 205 Mar.p........... 67 129 3 543 602 244 3,513 151 472 206 1 Includes reported or estimated gold holdings of international and the Bank’s gold assets net of gold deposit liabilities. This procedure regional organizations, central banks and govts, of countries listed in avoids the overstatement of total world gold reserves since most of the this table, and also of a number not shown separately here, and gold to be gold deposited with the BIS is included in the gold reserves of individual distributed by the Tripartite Commission for the Restitution of Monetary countries. Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ 2 Net gold assets of BIS, i.e., gold assets minus gold deposit liabilities. tries, and People’s Republic of China. 3 Reflects South African Reserve Bank sale of gold spot and repurchase The figures included for the Bank for International Settlements are forward. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 ties to non­ End IMF Liquid mone­ of Total arising Short­ liabili­ Short­ tary period from term Market­ Non­ Other ties term Market­ inti, gold liabili­ able market­ readily to com­ liabili­ able and re­ trans­ ties re­ U.S. able U.S. market­ mercial ties re­ U.S. gional actions 1 Total ported Treas. Treas. able banks Total ported Treas. organi­ by bonds bonds liabili­ abroad6 by bonds zations 8 banks and and ties5 banks and in notes3 notes4 in notes3,7 U.S. U.S. 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........... (31,144 1,011 14,840 12,484 860 583 913 10,116 4.271 3.743 528 906 \31,019 1,011 14,895 12,539 860 583 913 9,936 4.272 3.744 528 905 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 19689........... /38,687 1.030 17,407 11.318 529 3.219 2.341 14.472 5,053 4.444 609 725 138,473 1.030 17,340 11.318 462 3.219 2.341 14.472 4,909 4.444 465 722 19699........... *0/45,755 1,109 1015,975 11,054 346 10 3,070 1.505 23,638 4,464 3,939 525 659 145,914 1,019 15,998 11,077 346 3,070 1.505 23,645 4,589 4,064 525 663 1970—Dec. . J 1 4 4 7 6 , , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3 . , 7 7 8 7 6 5 1 19 9 . . 3 33 3 3 3 2 3 9 0 5 6 3 3 . . 4 45 5 2 2 6 6 9 9 5 5 1 17 7 , , 1 1 6 3 9 7 4 4 , , 6 6 0 7 4 6 4 4 , , 0 0 3 2 9 9 6 5 4 65 7 8 8 4 4 6 4 1971—Dec. ii / 1 6 6 7 7 , , 6 8 8 0 1 8 5 54 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 3 9 9 , , 6 0 7 1 9 8 1 1 . . 9 9 5 5 5 5 9 9 , . 4 5 3 3 1 4 1 14 4 4 4 1 1 0 0 , , 9 2 4 6 9 2 4 4 , , 1 1 4 3 1 8 3 3, , 6 6 9 9 1 4 4 4 4 4 7 7 1 1 , , 5 5 2 2 3 8 1972—Dec... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec.r. 92,490 66,861 i243,923 5,701 1215,564 1,673 17,694 5,932 5,502 430 2,003 1974—Dec. 9. /119,240 76,801 53,057 5.059 16.339 2.346 30,314 8,803 8,305 498 3.322 \119,152 76,808 53,064 5.059 16.339 2.346 30,079 8,943 8.445 498 3.322 1975—Mar.r. 119,993 79,332 53,706 6,003 16.466 3,157 27,414 9,047 8,411 636 4,200 Apr.r. 121.096 79,292 53,531 5,941 16,507 3,313 28,799 8,843 8,188 655 4,162 Mayr. 122,357 80,007 52,408 6,064 18,067 3,468 28,913 9,123 8,500 623 4,314 June r. 122.097 80,780 51,929 6,119 19,169 3,563 27,990 9,310 8,656 654 4,017 July r. 123,008 80,022 50,393 6,160 19,616 3,853 29,035 9,337 8,627 710 4,614 Aug.f. 124,411 79,499 49,915 6,276 19.466 3,842 30,340 9,668 8,997 671 4,904 Sept.r. 123,265 78,058 48,080 6,452 19.666 3,860 30,318 9,901 9,200 701 4,988 Oct.r. 123,370 79,940 49,602 6,624 19.666 4,048 28,467 10,021 9,283 738 4,942 Nov.r. 126,393 79,409 49,124 6,454 19,726 4,105 32,191 10,234 9,527 707 4,560 Dec.r. 126,137 80,150 49,170 6,575 19,976 4,429 29,579 10,765 10,036 729 5,643 1976—Jan.. . 127,770 80,723 49,147 6,816 20.051 4,709 30,993 10,510 9,775 735 5,544 Feb.**. 130,928 81,357 49,670 6,917 20.051 4,719 33,175 10,823 10,078 745 5,573 Mar.*\ 127,440 80,360 48,238 7,315 20.051 4,756 30,286 11,056 10,255 801 5,738 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 4 Excludes notes issued to foreign official nonreserve agencies. the first time; and U.S. Treasury securities payable in foreign currencies 5 Includes long-term liabilities reported by banks in the United States issued to official institutions of foreign countries have been increased in and debt securities of U.S. Federally sponsored agencies and U.S. cor­ value to reflect market exchange rates as of Dec. 31, 1971. porations. 12 Includes $162 million increase in dollar value of foreign currency 6 Includes short-term liabilities payable in dollars to commercial banks liabilities revalued to reflect market exchange rates, as follows: short­ abroad and short-term liabilities payable in foreign currencies to commer­ term liabilities, $15 million; and nonmarketable U.S. Treasury notes, cial banks abroad and to other foreigners. $147 million. 7 Includes marketable U.S. Treasury bonds and notes held by commer­ cial banks abroad. Note.—Based on Treasury Dept, data and on data reported to the 8 Principally the International Bank for Reconstruction and Develop­ Treasury Dept, by banks and brokers in the United States. Table excludes ment and the Inter-American and Asian Development Banks. IMF holdings of dollars, and U.S. Treasury letters of credit and non- 9 Data on the 2 lines shown for this date differ because of changes negotiable, non-interest-bearing special U.S. notes held by other inter­ in reporting coverage. Figures on first line are comparable with those national and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 1976 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe i American countries 2 End of period countries Canada republics Asia Africa 197 2 61,526 34,197 4,279 1,733 17,577 777 2,963 1973 r......... 66,861 45,764 3,853 2,544 10,887 788 3,025 1974 ’■-Dec. 3 /76,801 44,328 3,662 4,419 18,604 3,161 2,627 \76,808 44,328 3,662 4,419 18,611 3,161 2,627 1975 r-Mar.. 79,332 45,918 3,546 4,390 19,421 3,433 2,624 Apr.. 79,292 45,205 3,251 4,506 20,126 3,493 2,711 May. 80,007 45,485 3,101 4,600 20,456 3,448 2,917 June.. 80,780 45,483 3,008 4,723 20,497 3,800 3,269 July. . 80,022 44,458 2,966 4,763 21,384 3,319 3,132 Aug.., 79,499 44,210 2,929 4,937 21,057 3,392 2,974 Sept.., 78,058 43,481 3,011 4,840 20,819 3,145 2,762 Oct... 79,940 45,010 3,049 4,254 22,008 3,018 2,601 Nov.. 79,409 44,744 3,218 4,056 21,826 2,951 2,614 Dec... 80,150 45,312 3,132 4,447 22,381 2,983 1,894 1976—Jan.. . 80,723 45,406 3,420 3,552 23,635 2,724 1,986 Feb.25. 81,357 44,761 3,654 3,377 24,813 2,731 2,021 Mar.p 80,360 43,177 3,673 3,783 25,098 2,718 1,911 1 Includes Bank for International Settlements, and European Fund 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 organizations 5 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 bills and term rencies Demand Time2 cates liab.6 Demand Time2 certifi­ liab.4 cates 3 197 2 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 799 197 3 69,074 68.477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 1,474 f94,847 94,081 14,068 10,106 35.662 34,246 766 139 111 497 2,424 1974—Dec.7. [94,760 93,994 14,064 10,010 35.662 34,258 766 139 111 497 2,424 1975—Mar.. 93,032 92,351 12,329 10,043 40,094 29,885 682 502 189 116 111 2,419 Apr.. . 94,192 93,450 11,696 10,390 40,424 30,941 742 674 99 126 781 2,668 May. . 93,735 93,070 11,929 10,374 40,628 30,139 665 914 115 133 1,994 1,672 June. . 92,517 91,933 12,596 10,662 38,265 30,535 584 943 106 183 996 2,708 July.. 92,500 91,939 12,218 10,385 38,564 30,772 560 444 146 134 2,518 1,646 Aug.. 94,055 93,493 12,218 10,703 38,529 32,043 562 804 110 148 3,156 1,389 Sept.. 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.. 9 A,011 93.478 13,579 10,664 37,414 31,821 599 5,293 139 186 2,554 2,412 1976—Jan... 94,848 94,239 12,295 10,732 38,789 32,424 600 4,925 114 217 2,498 2,096 Feb.*3. 97,443 96,789 13,375 10,422 39,657 33,335 642 4,520 118 162 2,435 1,806 Mar.2* 93,542 92,982 13,126 10,661 37,572 31,623 555 4,763 130 179 2,495 1,959 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time 2 certifi­ liab. 4 Demand Time2 certifi­ liab.6 cates 3 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 \91,589 13,925 9,899 35,165 31,834 766 53,064 2,951 4,167 34,656 11,163 127 1975—Mar.., 89,531 12,140 9,927 39,316 27,466 682 53,706 2,323 4,203 39,015 8,164 Apr.. , 90,518 11,597 10,264 39,643 28,273 742 53,531 2,147 4,193 39,316 7,874 May.. 89,821 11,814 10,241 38,634 28,468 665 52,408 2,175 4,324 38,372 7,537 June.. 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... 89,249 12,121 10,251 35,406 30,909 562 49,932 2,493 3,939 35,055 8,445 Sept.. 87,598 13,315 10,273 33,645 29,811 554 48,080 2,452 3,957 33,284 8,387 Oct... 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... 88,785 13,440 10,478 34,860 29,416 591 49,170 2,644 3,438 34,175 8,913 1976—Jan.. . 89,915 12,181 10,514 36,291 30,328 600 49,147 2,449 3,291 35,633 7,774 Feb^. 92,923 13,257 10,260 37,222 31,541 642 49,670 2,703 2,919 36,628 7,420 Mar.p, 88,780 12,997 10,482 35,077 29,669 555 48,238 2,692 2,745 34,578 8,223 To banks9 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Deposits U.S. Other Deposits U.S. Other foreign Treasury short­ Treasury short­ cur­ Total bills and term Total bills and term rencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 6 cates cates 1973...................... 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1IV0 I/A4 —TJJICasC* . 7'......... / \ 3 3 8 8 , , 6 52 1 5 9 2 2 9 9 , , 4 6 4 7 1 6 8 8, ,2 24 4 8 4 1 1 , , 9 9 4 3 2 6 2 2 3 3 2 2 1 1 9 9 , , 0 2 2 5 9 4 8 8 , , 4 3 4 0 5 4 2 2 , , 7 7 2 2 9 9 3 3 , , 7 7 9 9 6 6 2 2 7 77 7 1 1, , 6 5 4 0 3 2 6 6 3 39 9 1975—Mar............ 35,825 26,732 7,077 1,808 101 17,747 8,411 2,740 3,916 200 1,555 682 Apr............ 36,988 28,058 6,894 2,102 120 18,941 8,189 2,556 3,969 207 1,457 742 May........... 37,414 28,249 6,856 1,821 105 19,466 8,500 2,784 4,096 156 1,465 665 June........... 36,620 27,261 7,075 2,009 99 18,078 8,775 2,855 4,324 176 1,421 584 July............ 37,947 28,113 6,906 1,339 124 19,744 9,273 2,688 4,851 152 1,582 560 Aug............ 39,317 29,708 6,923 1,836 121 20,827 9,048 2,705 4,476 230 1,637 562 Sept............ 39,518 29,764 7,982 1,775 89 19,918 9,200 2,881 4,541 272 1,506 554 Oct............. 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............. 39,615 28,988 7,549 2,140 335 18,964 10,036 3,248 4,901 349 1,538 591 1976—Jan.............. 40,767 30,393 6,832 2,162 369 21,030 9,774 2,900 5,061 289 1,523 600 Feb.®......... 43,253 32,533 7,443 2,156 275 22,658 10,078 3,111 5,185 320 1,463 642 Mar.p......... 40,541 29,731 7,159 2,390 217 19,965 10,255 3,146 5,346 282 1,481 555 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 6 Principally bankers’ acceptances, commercial paper, and negotiable liabilities, since they represent essentially the amount of dollars available time certificates of deposit. for drawings from the IMF by other member countries. Data exclude also 7 Data on the 2 lines shown for this date differ because of changes in U.S. Treasury letters of credit and nonnegotiable, noninterest-bearing reporting coverage. Figures on the first line are comparable in coverage special U.S. notes held by the Inter-American Development Bank and the International Development Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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. i June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p Mar.*> Europe: Austria........................... 607 607 627 661 667 688 606 635 700 714 693 525 Belgium-Luxembourg. .. 2,506 2,506 3,070 2,982 2,891 2,865 2,918 2,938 2,917 2,697 2,460 2,415 Denmark........................ 369 369 355 325 308 311 327 361 332 375 434 678 Finland.......................... 266 266 365 361 406 391 367 380 391 309 313 334 France........................... 4,287 4,287 5,403 5,515 5,493 5,950 6,608 7,172 7,733 7,499 6,480 6,210 Germany........................ 9,420 9,429 6,460 5,440 5,277 4,797 5,047 4,841 4,407 3,873 4,522 4,245 Greece........................... 248 248 254 299 307 361 331 313 284 263 340 261 Italy............................... 2,617 2,617 2,298 1,426 1,056 1,426 1,398 1,071 1,112 1,052 1,044 1,338 Netherlands................... 3,234 3,234 3,535 3,539 3,301 3,059 3,199 3,301 3,148 3,132 3,558 3,124 Norway......................... 1,040 1,040 945 1,118 1,052 982 886 970 996 888 925 770 Portugal......................... 310 310 264 279 268 207 236 190 194 243 221 209 Spain............................. 382 382 362 392 288 459 414 402 426 445 400 386 Sweden........................... 1,138 1,138 1,847 2,010 2,203 2,195 2,252 2,241 2,286 2,266 2,312 2,287 Switzerland.................... 9,986 io;137 8,445 7,965 8,282 8,048 8,205 8,029 8,556 8,611 8,648 8,852 Turkey........................... 152 152 124 106 134 116 128 120 118 88 104 106 United Kingdom......... 7,559 7,584 6,417 6,461 8,342 6,268 6,722 7,177 6,885 7,611 8,236 6,482 Yugoslavia..................... 183 183 83 106 104 128 138 175 126 83 178 222 Other Western Europe2. 4,073 4,073 2,562 2,560 2,291 2,443 2,428 2,370 2,970 2,313 2,116 2,136 U.S.S.R.......................... 82 82 62 29 50 39 42 38 40 45 43 38 Other Eastern Europe... 206 206 370 181 160 272 153 128 200 160 201 144 Total. 48,667 48,852 43,852 41,755 42,882 41,005 42,405 42,853 43,821 42,669 43,228 40,765 Canada. 3,517 3,520 3,617 3,921 3,637 3,944 3,567 4,091 3,075 3,885 4,721 4,233 Latin America: Argentina.......................... 886 886 989 1,061 1,054 984 1,135 1,150 1,147 1,208 1.134 1,169 Bahamas........................... 1,448 1,054 1,691 1,991 2,190 1,503 2,221 2,989 1,834 3,197 2,946 1,709 Brazil................................. 1,034 1,034 1,081 853 921 1,016 1,083 1,075 1,227 1,191 1.135 1,320 Chile.................................. 276 276 289 301 280 293 270 266 317 248 248 273 Colombia........................... 305 305 400 376 367 379 366 387 414 484 536 520 Mexico.............................. 1,770 1,770 1,819 1,809 1,824 1,872 1,956 2,183 2,078 1,899 2,048 2,033 Panama............................. 488 510 549 657 649 752 765 840 1,097 1,145 953 778 Peru................................... 272 272 219 228 208 245 247 249 244 219 223 234 Uruguay............................ 147 165 155 190 160 208 168 175 172 185 204 242 Venezuela.......................... 3,413 3,413 3,726 3,964 4,242 4,247 3,531 3,188 3,290 2,711 2,571 2,574 Other Latin American re­ publics ............................... 1,316 1,316 1,513 1,417 1,371 1,469 1,399 1,368 1.500 1,431 1.449 1,626 Netherlands Antilles and Surinam............................. 158 158 134 104 105 119 113 118 129 129 143 118 Other Latin America............. 526 596 991 1,603 1,534 1,897 1,046 2,141 1.501 1,613 2.449 1,746 Total. 12,038 11,754 13,557 14,554 14,907 14,983 14,305 16,131 14,950 15,665 16,038 14,343 Asia: China, People’s Rep. of (China Mainland).............. 50 50 65 50 55 94 104 93 123 263 224 101 China, Republic of (Taiwan)., 818 818 1,071 1,015 1,054 1,058 1,061 1,051 1,025 1,010 1,072 1,,100 Hong Kong............................ 530 530 598 540 577 741 684 683 623 667 681 741 India....................................... 261 261 145 133 214 214 194 181 126 203 324 338 Indonesia................................ 1,221 1,221 365 527 289 234 612 418 369 762 583 498 Israel...................................... 386 389 472 369 343 322 364 342 386 292 309 346 Japan...................................... 10,897 10,897 11,223 11,669 11,218 11,128 9,940 10,776 10,142 10,544 11,710 12,232 Korea...................................... 384 384 361 366 374 342 400 386 390 395 381 361 Philippines.............................. 747 747 697 632 669 604 580 593 698 601 627 605 Thailand................................. 333 333 370 284 255 207 194 193 252 279 224 225 Middle East oil-exporting countries 3........................... 4,633 4,608 3,835 4,432 4,804 5,111 5,785 5,987 6,440 6,428 6,535 6,699 Other...................................... 813 820 906 767 919 970 925 885 869 970 933 967 Total............................... 21,073 21,082 20,108 20,785 20,770 21,025 20,844 21,589 21,443 22,414 23,604 24,214 Africa: Egypt...................................... 103 103 514 253 295 188 185 255 342 177 180 314 South Africa........................... 130 130 141 132 147 254 177 108 168 218 133 186 Oil-exporting countries4......... 2,814 2,814 2,965 2,785 2,872 2,649 2,447 2,372 2,238 2,134 2,208 1,919 Other...................................... 504 504 572 563 552 560 575 643 622 563 609 680 Total............................... 3,551 3,551 4,192 3,732 3,866 3,651 3,385 3,377 3,370 3,091 3,131 3,099 Other countries: Australia................................. 2,742 2,742 3,185 3,231 3,114 2,912 2,766 2,712 2,013 2,046 2,070 2,001 All other................................. 89 89 64 77 75 78 80 87 114 143 131 125 Total............................... 2,831 2,831 3,249 3,308 3,189 2,989 2,846 2,800 2,127 2,190 2,201 2,126 Total foreign countries.............. 91,676 91,589 38,574 88,055 89,252 87,598 87,352 90,842 88,786 89,915 92,923 88,780 International and regional: International5......................... 2,900 2,900 3,694 4,173 4,500 4,621 4,303 4,217 5,069 4,629 4,189 4,459 Latin American regional......... 202 202 155 181 215 186 190 193 187 219 261 176 Other regional6....................... 69 69 94 90 94 90 61 37 85 70 128 Total............................... 3,171 3,171 3,943 4,444 4,804 4,901 4,583 4,471 5,293 4,933 4,520 4,763 Grand total...................... 94,847 94,760 92,517 92,500 94,055 92,499 91,935 95,313 94,078 94,848 97,443 93,542 For notes see opposite page. 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MAY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY-Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data7 1973 1974 1975 1973 1975 Area and country Area and country Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus................................... 19 10 7 17 6 Cambodia.................. 2 4 4 4 Iceland................................... 8 11 21 20 33 Jordan........................ 6 6 22 30 39 Ireland, Rep. of..................... 62 53 29 29 Laos........................... 3 3 3 5 2 Lebanon.................... 62 68 126 180 Other Latin American republics: Malaysia.................... 58 40 63 92 77 Bolivia................................... 68 102 96 93 110 Pakistan..................... 105 108 91 118 74 Costa Rica............................. 86 88 118 120 124 Singapore................... 141 165 245 215 Dominican Republic............. 118 137 128 214 169 Sri Lanka (Ceylon) . .. 13 13 14 13 13 Ecuador................................. 92 90 122 157 Vietnam..................... 88 98 126 70 62 El Salvador............................ 90 129 129 144 171 Guatemala............................. 156 245 219 255 260 Haiti...................................... 21 28 35 34 38 Honduras............................... 56 71 88 92 99 Other Africa: Jamaica.................................. 39 52 69 62 41 Ethiopia (incl. Eritrea)*, 79 118 95 76 60 Nicaragua.............................. 99 119 127 125 133 Ghana....................... 20 22 18 13 Paraguay................................ 29 40 46 38 43 Kenya........................ 23 20 31 32 '\9 Trinidad and Tobago............. 17 21 107 31 Liberia....................... 42 29 39 33 53 Southern Rhodesia 2 1 2 3 1 Other Latin America: Sudan........................ 3 2 4 14 12 Bermuda................................ 242 201 116 100 Tanzania..................... 12 12 11 21 British West Indies............ 109 354 449 627 Tunisia....................... 7 17 19 23 29* Uganda...................... 6 11 13 38 22 Other Asia:............................... Zambia...................... 22 66 22 18 78 Afghanistan........................... 22 11 18 19 Burma.................................... 12 42 65 49 All other: New Zealand............. 39 33 47 36 j 42 1 Data in the 2 columns shown for this date differ because of changes 4 Comprises Algeria, Gabon, Libya, and Nigeria. in reporting coverage. Figures in the first column are comparable in 5 Data exclude holdings of dollars of the International Monetary Fund. coverage with those for the preceding date; figures in the second column 6 Asian, African, and European regional organizations, except BIS, are comparable with those shown for the following date. which is included in “Europe.” 2 Includes Bank for International Settlements. 7 Represent a partial breakdown of the amounts shown in the other 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, categories (except “Other Eastern Europe”). and United Arab Emirates (Trucial States). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To 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—Mar.................. 1,512 794 718 396 255 67 131 57 202 120 364 9 21 Apr................... 1,463 620 843 521 253 68 129 57 205 121 484 10 22 May........ 1,497 579 918 601 248 69 123 57 199 121 569 5 22 June.................. 1,460 512 948 806 247 70 120 59 197 121 599 2 23 July.................. 1,493 432 1,060 1,041 242 77 121 61 201 121 709 5 24 Aug.................. 1,446 372 1,074 75.1 243 81 120 61 202 123 719 6 23 Sept.................. 1,468 395 1,073 753 241 79 118 61 201 121 721 6 23 Oct................... 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 61 256 140 913 9 24 1976—Jan................... 1,875 306 1,567 1,042 402 123 264 65 373 142 1,005 8 41 Feb.P................ 1,860 287 1,571 1,065 398 107 262 64 369 141 1,024 12 26 Mar.**............... 2,038 157 1,800 1,091 418 371 256 73 368 148 1,310 16 40 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. 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A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p Mar.p Europe: 10 14 14 14 14 14 14 14 13 13 13 13 13 Germany..................................... 9 209 209 209 209 210 217 216 216 215 212 238 247 Sweden ....................................... 251 252 251 252 252 278 275 275 275 276 276 275 276 30 32 34 37 37 41 44 54 58 55 68 72 75 United Kingdom......................... 493 611 564 522 536 520 501 441 414 363 374 370 386 Other Western Europe................. r88 r95 r97 97 98 102 114 152 152 117 199 204 363 Eastern Europe........................... 5 5 5 5 5 5 5 5 4 4 4 4 4 Total.................................... 885 1,217 1,174 1,135 1,151 1,169 1,170 1,157 1,134 1,044 1,146 1,176 1,364 Canada........................................... 713 460 412 412 408 406 404 399 400 393 393 416 416 Latin America: Latin American republics............. 12 11 11 13 13 13 13 13 33 33 33 31 31 83 125 118 134 178 149 149 158 160 161 159 131 121 Other Latin America.................... 5 4 4 5 5 5 5 6 6 6 7 8 8 Total.................................... 100 140 133 152 196 167 168 177 199 200 199 170 160 Asia: Japan.......................................... 3,498 3,496 3,496 3,496 3,496 3,496 3,502 3,520 3,269 3,271 3,268 3,212 3,217 Other Asia.................................. 212 1,121 1,291 1,397 1,418 1,498 1,648 1,798 1,849 2,075 2,195 2,337 2,562 Total.................................... 3,709 4,617 4,787 4,893 4,914 4,994 5,149 5,319 5,118 5,346 5,473 5,549 5,779 151 161 181 181 201 211 261 311 311 321 340 350 396 All other......................................... Total foreign countries.................... 5,557 6,596 6,687 6,773 6,870 6,945 7,153 7,362 7,161 7,304 7,552 7,662 8,116 International and regional: International................................ 97 419 342 29 128 66 52 324 60 322 593 1,034 957 Latin American regional............... 53 69 57 44 40 35 35 35 29 29 19 19 19 Total..................................... 150 488 399 74 169 101 87 359 89 351 612 1,053 976 Grand total........................... 5,708 7,084 7,087 6,847 7,039 7,048 7,240 7,721 7,250 7,655 8,164 8,715 9,091 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 Loans to— Accept­ Foreign End of period Total Collec­ ances govt, se­ tions made Deposits curities, Total Official out­ for acct. Other Total with for­ coml. Other Total institu­ Banks1 Others2 stand­ of for­ eigners and fi­ tions ing eigners nance paper 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—Mar................. 42,283 41,136 9,615 310 5,664 3,641 5,418 11,341 14,762 1,147 626 290 231 Apr................. 42,753 41,651 10,642 362 6,499 3,780 5,342 11,441 14,226 1,102 619 241 242 May................ 45,866 44,810 11,853 366 7,636 3,852 5,537 10,959 16,460 1,056 478 301 277 June................ 45,710 44,497 11,347 494 6,796 4,057 5,345 10,641 17,165 1,212 591 335 286 July................. 45,542 44,368 11,705 572 6,837 4,296 5,383 10,204 17,076 1,175 608 296 271 Aug................. 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.................. 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.................. 51,275 50,043 13,609 669 8,132 4,808 5,311 11,047 20,077 1,232 682 263 286 Feb.p............... 53,716 52,339 14,345 762 8,683 4,899 5,191 10,994 21,810 1,377 705 241 431 Mar.p............. 53,168 51,847 13,643 786 7,923 4,934 5,367 11,134 21,704 1,321 794 145 382 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

MAY 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. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: Austria................................................ 21 17 16 28 20 19 32 15 20 23 22 384 600 620 598 536 555 463 352 401 417 430 Denmark............................................ 46 64 62 60 46 50 54 49 55 55 55 Finland.............................................. 122 133 143 143 130 127 133 128 132 120 128 673 584 666 741 906 1,329 1,195 1,403 1,336 1,446 1,211 Germany............................................ 589 428 482 448 443 496 659 427 486 426 474 64 37 46 50 54 56 91 49 55 52 53 Italy................................................... 345 339 363 336 363 438 418 370 369 402 360 Netherlands........................................ 348 218 288 338 313 264 285 300 316 267 270 Norway.............................................. 119 98 91 106 102 102 92 71 66 63 66 Portugal.............................................. 20 25 27 22 18 15 19 16 20 20 21 196 235 257 214 245 256 261 249 274 262 231 180 115 155 185 182 152 182 167 124 111 121 Switzerland........................................ 335 252 254 290 214 274 314 232 245 273 340 15 40 26 43 56 54 121 86 59 82 73 United Kingdom................................ 2,570 3,476 3,458 4,067 3,724 3,792 3,858 4,586 4,506 4,707 4,409 Yugoslavia....................................... 22 31 36 40 37 34 55 38 37 49 64 Other Western Europe......................... 22 22 22 62 23 22 25 27 26 29 29 U.S.S.R............................................... 46 77 80 79 106 144 165 103 101 84 85 131 118 130 110 110 96 103 114 124 159 109 6,245 6,910 7,222 7,960 7,630 8,275 8,526 8,781 8,752 9,046 8,551 2,776 2,837 2,651 2,340 2,626 2,728 2,742 2,812 3,015 2,978 2,895 Latin America: 720 1,111 1,105 1,115 1,219 1,343 1,229 1,203 1,246 1,338 1,290 3,398 8,660 7,813 6,627 6,432 7,250 6,856 7,513 7,981 9,830 10,189 1,415 1,184 1,390 1,505 1,491 1,536 1,785 2,200 2,132 2,173 2,292 Chile................................................... 290 429 472 435 405 351 381 360 312 343 324 713 687 666 667 684 662 649 689 651 583 545 1,972 2,548 2,676 2,762 2,705 2,623 2,565 2,800 2,776 3,072 3,044 503 527 581 578 721 903 886 1,032 1,262 1,167 1,090 Peru............................................... 518 623 626 646 624 599 565 588 624 634 597 63 85 90 73 54 52 56 51 68 62 46 704 791 902 956 1,109 1,051 980 1,086 1,001 925 1,045 Other Latin American republics............ 866 966 1,055 1,005 1,014 1,041 969 980 1,045 1,047 963 Netherlands Antilles and Surinam........ 62 83 62 54 57 59 46 49 53 43 33 Other Latin America........................... 1,142 1,830 1,679 2,091 1,684 2,202 2,555 1,816 3,059 3,251 2,731 Total............................................ 12,366 19,523 19,118 18,516 18,199 19,673 19,522 20,417 22,224 24,483 24,189 Asia: China, People’s Rep. of (China Mainland) 4 9 13 13 5 11 11 22 10 17 22 500 483 463 503 606 601 681 735 725 729 775 223 315 201 190 231 257 258 258 234 225 229 14 20 23 38 21 17 16 21 19 26 25 157 115 113 88 91 86 92 105 129 131 162 255 312 362 358 398 389 387 491 419 365 323 Japan................................................. 12,514 10,245 10,310 10,294 10,400 10,253 10,429 10,760 10,109 9,860 10,177 Korea................................................. 955 1,523 1,462 1,502 1,515 1,555 1,505 1,556 1,605 1,715 1,600 372 478 481 410 340 338 347 377 434 507 510 Thailand............................................ 458 441 461 494 474 501 499 495 535 516 537 Middle East oil-exporting countries1.... 330 418 527 493 624 446 506 524 525 600 646 Other.................................................. 441 492 544 572 651 702 665 683 734 705 731 16,222 14,850 14,960 14,956 15,357 15,156 15,396 16,025 15,477 15,395 15,738 Africa: 111 149 134 141 125 127 130 104 106 101 103 South Africa....................................... 329 498 489 492 504 513 540 546 547 546 564 115 120 144 134 190 207 215 231 213 230 226 Other.................................................. 300 301 297 347 343 380 409 351 349 330 281 855 1,068 1,064 1,114 1,162 1,227 1,294 1,231 1,215 1,207 1,174 Other countries: 466 428 446 466 509 532 554 535 503 492 521 99 81 80 88 80 105 91 73 87 113 98 565 509 526 554 589 638 645 608 589 605 619 39,030 45,699 45,541 45,438 45,562 47,696 48,126 49,875 51,272 53,714 53,166 11 1 3 1 * 1 1 3 2 39,030 45,710 45,542 45,441 45,564 47,697 48,127 49,876 51,275 53,716 53,168 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. □ MAY 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 1974............... 7,183 6,494 1,333 931 4,230 609 80 1,907 501 2,613 258 384 977 542 1975—Mar__ 7,589 6,920 1,401 1 ,069 4,450 598 70 2,126 500 2,707 247 385 1,029 595 Apr...... 7,619 6,935 1 ,241 1,117 4,578 605 78 2,188 505 2,798 242 247 1,006 633 May.... 7,906 7,215 1,283 1,198 4,733 610 81 2,325 491 2,864 254 242 1,047 683 June.... 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. . .. 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...... 9,485 8,435 1,380 1,692 5,362 934 116 2,675 555 3,448 296 220 1,276 1,016 1976—Jan...... 9,412 8,349 1,290 1,636 5,423 945 118 2,677 552 3,382 289 213 1,269 1,030 Feb.P... 9,511 8,352 1,265 1,635 5,452 1,012 148 2,602 576 3,471 289 230 1,250 1,093 Mar.*\.. 9,761 8,602 1,315 1,725 5,562 1,011 149 2,682 570 3,611 291 226 1,265 1,115 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 securities2,3 Net purchases or sales (—) Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases or Total and sales ( —) sales ( —) sales (—) regional Total4 Official Other 197 3 305 -165 470 465 6 18,574 13,810 4,764 1,474 2,467 -993 1,729 1 ,554 176 197 4 -472 101 -573 -642 69 16,183 14,677 1,506 1,036 3,254 -2,218 1,907 1,722 185 197 5 1,948 201 1,747 1 ,516 230 20,360 15,212 5,148 2,386 8,687 -6,300 1 ,538 1,719 -182 1976—Jan.-Mar. p. 1,436 625 811 740 72 7,819 6,127 1,693 1,220 3,675 - 2,455 500 602 -102 1975—Ma r 1,171 421 749 724 25 1,760 1,155 604 195 647 -452 148 159 -11 Apr........... -254 -210 -43 -62 20 1,640 1,397 243 167 338 -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 1,332 422 215 852 -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 -160 89 256 -167 Sept.......... 192 -14 206 175 31 1,257 1,124 134 194 285 -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........... 405 262 143 121 21 1,859 958 901 282 1,471 - 1,190 148 97 51 1976—Ja..............n 508 261 247 241 6 2,798 2,069 729 462 800 -339 145 139 6 Feb.3*........ 551 441 110 101 10 2,503 2,086 418 402 1,547 - 1,145 162 218 -56 Mar.*3....... 377 -77 454 398 55 2,518 1,971 547 356 1,327 -971 193 245 -51 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 1976—Jan.-Mar.33 438 75 abroad. 3 Includes transactions of international and regional organizations. 1975—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. 176 10 1976—Jan. 115 20 Feb.** 116 10 Mar.*> 207 45 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 France many lands land King­ Europe Canada America East1 Asia2Other sales (—) dom Latin 1973.................. 12,767 9,978 2,790 439 2 339 686 366 2,104 99 4 577 5 1974.................. 7,634 7,095 540 203 39 330 36 -377 281 -6 -33 288 10 1975 15,066 10,600 4,465 262 250 359 897 569 2,464 356 -7 1,470 140 39 1976-—Jan.-Mar.p 6,208 4,764 1,444 93 175 -68 206 193 657 96 112 527 36 22 1975--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......... 1,355 686 669 28 40 64 123 32 297 102 -9 268 13 -3 1976--Jan.......... 2,060 1,544 517 1 136 -48 -2 88 208 40 76 198 -6 1 Feb.33...... 2,095 1,724 371 14 12 -14 63 41 133 48 11 175 5 5 Mar.p.... 2,053 1,497 557 78 26 -6 145 64 317 8 25 153 39 16 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................. 966 96 33 183 96 373 719 45 43 632 * 10 -483 1975.................. 681 82 -11 -16 116 80 116 127 30 1,437 -42 5 1 -993 1976—Jan.-Mar.p 229 3 -54 -2 22 -174 -40 41 10 284 -76 3 -20 25 1975—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 S J J A u u e u p n l g y t e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - 3 1 1 3 5 0 6 8 7 8 4 4 -1 2 1 3 7 3 9 - 1 3 6 6 * -1 2 8 5 6 8 - - 3 6 7 5 5 - 1 6 2 3 8 9 1 2 0 - - 1 1 7 5 8 9 3 8 3 - 3 5 3 6 4 5 * 1 1 1 - 6 8 7 1 5 2 9 - -1 7 4 1 * * * * * * * * - -1 2 — 6 9 3 1 2 2 8 7 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.......... 232 2 3 3 8 56 74 6 6 140 -12 I * 16 1976—Jan.......... 212 -1 4 -1 -2 -161 7 29 3 219 -21 -2 -10 -13 Feb.p....... 47 2 -1 2 20 -2 23 4 6 30 -34 1 * 18 Mar.p.... -31 3 -56 -3 5 -11 -70 9 1 35 -20 4 -10 20 2 1 S S e e e e n n o o t t e e 2 1 t t o o T T a a b b l l e e 1 1 5 5 . . of N U o . t S e . .— G S o t v a t t , i st a i g cs e n i c n i c e l s u d a e n d S ta c t o e r a p n o d ra l t o io c n al s . go A v l t s , o s e in cu cl r u it d ie e s s , i a ss n u d e s s e o cu f r n it e ie w s 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 37 316 243 1974.............. -2,033 -60 - 1,973 -546 - 1,508 -93 144 7 22 290 255 1975 r............ - 6,515- 2,225 - 4,290 -47 - 3,178 -306 -619 15 -154 333 231 1976— 383 225 Jan.-Mar.p - 2,556 -36 -2,521 -241 -2,054 -77 -128 -12 -9 354 241 298 178 1975—Mar.... -463 -106 -358 -66 -176 -3 -112 -2 1 293 194 Apr.. . . -157 -57 -100 -57 -3 17 -59 * 2 May. . . -184 31 -215 39 -167 ♦ -88 -2 2 1975—Mar........................ 349 209 June... -655 * -655 -22 -478 ♦ -30 2 -127 380 233 July.... -699 -475 -224 -26 -109 -25 -69 * 4 343 258 Aug--- -362 -21 -341 24 -204 -164 1 1 2 364 319 Sept.... -80 18 -98 -19 -129 25 24 -1 1 Oct..... -508 5 -513 48 -460 -48 -56 -3 6 Nov__ -714 -62 -652 -27 -584 6 3 -2 -48 Note.—Data represent the money credit balances and Dec.. . . - 1,139 -839 -299 80 -310 9 -78 -1 1 money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of 1976—Jan...... -333 94 -426 -109 -304 -9 -4 -3 2 foreigners with them, and in their accounts carried by Feb.p. . - 1,201 -139 - 1,063 33 -973 5 -110 -4 -14 foreigners. Mar.p.. - 1,022 9 - 1,032 -165 -777 -72 -14 -5 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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...................... 1973—Dec.. 121,866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 1974—Dec.. 151,905 6,900 4,464 2,435 138,712 27,559 60,283 4,077 46,793 6,294 1975—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. 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.r 171,600 8,691 5,763 2,928 156,130 33,517 64,347 5,504 52.762 6,779 Dec.r 175,907 6,723 3,661 3,061 162,887 34.489 68,391 5,869 54,137 6,297 1976—Jan.. . 178,876 7,985 4,997 2,988 164,654 36,843 66.571 6,099 55,142 6,237 Feb.*3. 180,821 8,938 5,903 3,034 165,439 34,952 69,090 6,322 55,075 6,445 Payable in U.S. dollars. 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—Feb.. 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. 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. . 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.. , 125,870 7,501 4,817 2,684 115,191 26,555 50,028 4,363 34,246 3,178 Nov.r 128,716 8,336 5,711 2,625 117.099 27,494 50,962 4,646 33,998 3,281 Dec.r 132,856 6,388 3,624 2.764 123,445 28.490 54,752 4,945 35,258 3,023 1976—Jan.. . 134,247 7,648 4,956 2,692 123,514 29,778 52,658 5,222 35,855 3,086 Feb. p. 135,844 8,623 5,859 2.764 123,969 28,361 54,476 5,369 35.762 3,252 IN UNITED KINGDOM Total, all currencies........ 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—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.. 74,883 2,375 1,449 926 70,354 17,557 35,102 881 16,814 2,153 1976--Jan.. . 73,437 2,251 1.467 784 68,985 18,028 33,094 1,034 16,828 2,202 Feb.*7. 72,959 2,946 2,270 676 67,843 16,050 34,887 975 15,931 2,169 Payable in U.S. dollars. 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—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.. 57,361 2,257 1,445 812 54,137 15,645 27,669 648 10,175 967 1976—Jan....... 55,067 2,139 1,457 683 52,048 15,575 25,311 837 10,325 880 Feb.P....... 55,042 2,856 2,261 595 51,267 14,279 26,741 726 9,522 918 IN BAHAMAS AND CAYMANS1 Total, all currencies...................... 1 1 9 9 7 7 4 3— —D De ec c. . . . 2 3 3 1 , , 7 7 7 3 1 3 2 2, ,2 4 1 6 0 4 1,0 3 8 1 1 7 1 1 , ,8 3 9 8 3 3 2 2 1 8 , , 0 4 4 5 1 3 3 1 , , 4 92 7 8 8 1 9 1 , , 8 3 9 5 5 4 2 1 , , 0 1 2 51 2 1 8 1 , , 0 5 6 9 8 9 5 81 2 5 0 1975—Feb.. 33,534 2,565 1,072 1,493 30,135 3,855 11,474 2,060 12,747 834 Mar.. 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. 38,198 4,126 2,468 1,658 33,214 4,270 13,181 2,531 13,232 858 June. 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.. 45,203 3,229 1,477 1,752 41,040 5,411 16,298 3,576 15,756 933 1976—Jan.. . 48,694 4,488 2,614 1,874 43,104 6,296 17,195 3,677 15,935 1,102 Feb.*. 250,276 4,767 2,751 2,016 44,393 6,256 17,555 3,908 16,675 1,115 Digitized for FRASFEoRr notes see p. A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 121,866 5,610 1,642 3,968 111,615 18.213 65,389 10,330 17,683 4,641 . 1973—Dec. .. .Total, all currencies 151.905 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20,189 6,933 . 1974—Dec. 151,662 12,561 6,607 5,954 132.594 28,185 63,402 21,951 19,057 6,507 . 1975--Feb. 155,204 15,407 8,849 6,557 133,540 28.214 63,419 22,577 19,330 6,257 Mar. 155,617 14,935 8,703 6,233 134.594 29,192 62,287 23,236 19,879 6,088 Apr. 156,910 16,861 10,366 6,494 133,806 26,725 64.700 22,223 20,158 6,243 .May 162,342 18,618 12,204 6,414 137,189 30,412 64.955 21,106 20,715 6,535 June 160,703 17,704 11,542 6,162 136,808 30,233 65.956 20,371 20,249 6,191 July 165,837 17,183 10,021 7,162 142,327 30,582 70,161 21,093 20,492 6,326 , Aug. 166,075 18,324 10,848 7,476 141,602 30,314 70,756 19,744 20,789 6,149 Sept. 169,456 19.073 11,201 7,872 144,209 31,781 70,353 20,627 21,449 6,174 Oct. 171,600 19,771 11,114 8,657 145,086 32,380 70,408 21,187 21,111 6,742 Nov. 175,907 20,116 12,060 8,056 149,407 33,911 72,173 22,761 20,562 6,384 .Dec. 178,876 22,553 12,673 9,879 150,416 35,712 72,258 21,705 20,740 5,907 .1976—Jan. 180,821 24,452 14,068 10,383 150,355 35,154 70,789 23,156 21,256 6,015 ...........Feb.p 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 . 1973—Dec. .Payable in U.S. dollars 107,890 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12,072 3,951 . 1974—Dec. 106,125 12,063 6,460 5,603 90,426 20,109 40.701 18,708 10,907 3,636 . 1975—Feb. 109,501 14,795 8,660 6,135 91,338 19,880 41,216 19,303 10,939 3,368 ..........Mar. 110,405 14,277 8,517 5,760 92,715 20,683 40,999 19,909 11,123 3,414 ...........Apr. 114,105 16,256 10,189 6,067 94,452 20,521 43,863 18,928 11,139 3,397 ..........May 119,385 17,998 12,008 5,990 97,828 23,969 44,202 17,968 11,689 3,560 ..........June 119,319 17,090 11,335 5,755 99,013 24,112 45,897 17,393 11,611 3,216 ..........July 123.906 16,538 9,840 6,698 103,987 24,435 49,41~ 18,080 12,055 3,381 ..........Aug. 125,442 17,693 10,645 7,048 104,562 24,477 50,682 16,777 12,626 3,187 ..........Sept. 127,930 18.396 10,997 7,399 106,170 25,824 49,724 17,476 13,146 3,364 ..........Oct. 131,577 19.074 10,923 8,151 108,638 26,650 50,292 18,407 13,289 3,865 ..........Nov. 135,640 19.397 11,834 7,563 112,757 28,098 51,494 19,982 13,183 3,486 ..........Dec. 138,403 21,912 12,501 9,411 113,182 29,422 51,804 18,906 13,050 3,309 .1976--Jan. 139,795 23,710 13,823 9,887 112,704 28,510 50,453 20,284 13,458 3,380 Feb .p IN UNITED KINGDOM 61,732 2,431 136 2,295 57.311 3,944 34,979 8,140 10,248 1,990 .1973—Dec. .. .Total, all currencies 69,804 3,978 510 3.468 63,409 4,762 32,040 15,258 11,349 2,418 .1974—Dec. 67.038 4,376 913 3,462 60.546 4,693 29,207 16,517 10,127 2,117 .1975—Feb. 69,654 5,095 1,224 3,871 62,363 4,630 29,990 17,305 10,438 2,196 ..........Mar. 69,248 4,596 1,342 3,254 62,625 5,394 28,666 17,812 10,753 2,026 ..........Apr. 68,708 4,772 1,337 3,435 61,772 5,325 28,957 16,726 10,764 2,164 ..........May 70,751 4,668 1,451 3,217 63,857 7,030 30,030 15,524 11.274 2,226 .........June 70,382 4,679 1,718 2.961 63,501 6,475 30,636 15,312 11,077 2,203 .........July 72,457 5,251 1,904 3,348 65,012 6,260 32,097 15,617 11,038 2,194 .........Aug. 72,120 5,112 1,833 3.279 64,962 6,396 33,130 14,486 10,950 2,046 ..........Sept. 72,742 4,905 1,766 3,139 65,699 6,746 32,334 14,909 11,711 2,138 ..........Oct. 73,924 5,497 2,028 3.468 66,267 6.470 33,340 15,180 11.275 2,161 ..........Nov. 74,883 5,646 2,122 3,523 67,261 6,494 32,985 16,553 11,229 1,976 ..........Dec. 73,437 5,645 1,749 3,896 65,914 6,444 33,534 15,053 10,882 1,878 . 1976—Jan. 72,959 5,491 1,914 3,577 65,544 6,648 31,444 16,464 10,988 1,923 ...........Feb.* 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 .1973—Dec. .Payable in U.S. dollars 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 .1974—Dec. 46,698 4,164 895 3,269 41,350 3,266 17,673 13,932 6,479 1,184 .1975—Feb. 49,533 4,805 1,189 3,616 43.546 3,072 19,128 14,688 6,658 1,183 ..........Mar. 49,177 4,297 1.313 2,984 43,758 3,886 17,997 15,158 6,717 1,122 ..........Apr. 49,479 4,487 1.314 3,173 43,784 4,220 18.640 14,135 6,789 1,208 ..........May 51,848 4,369 1,412 2,957 46.312 5,962 20,039 13,083 7,228 1,167 ..........June 51,826 4,421 1,684 2,737 46,217 5.478 20,775 12,915 7,049 1,188 .........July 54,017 4,975 1,873 3,103 47,912 5,288 22,087 13,249 7,287 1,129 .........Aug. 54,683 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 ..........Sept. 54,478 4,696 1,735 2.961 48,660 5,708 22,452 12,500 7,999 1,123 ..........Oct. 56,696 5,288 2,009 3.279 50,185 5.478 23.641 12,999 8,066 1,223 ..........Nov. 57,820 5,415 2,083 3,332 51,466 5,442 23,349 14,498 8,176 940 ..........Dec. 56.039 5,446 1,732 3,714 49,676 5,422 23,369 13,070 7,816 917 . 1976—Jan. 55,847 5,311 1,901 3,410 49,606 5.471 21,910 14,326 7,899 930 ...........Feb.? IN BAHAMAS AND CAYMANS * 23,771 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 . 1973—Dec. .. .Total, all currencies 31,733 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 . 1974—Dec. 33,534 5,243 3,281 1,962 27,498 8,975 13,550 2,711 2,262 793 . 1975—Feb. 33,793 7,228 5,081 2,147 25,875 8,498 12,614 2,520 2,243 690 ..........Mar. 35,667 7,420 5,083 2,337 27,536 8,756 13,694 2,769 2,318 711 ..........Apr. 38,198 9,090 6,766 2,324 28,309 6,872 16,018 2,977 2,441 799 ..........May 39,646 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 ..........June 39,614 9,991 7,407 2,584 28,933 8,401 15,539 2,500 2,492 690 ..........July 41,624 8,800 5,715 3,085 31,913 9,128 17,317 2,860 2,607 911 ..........Aug. 41,601 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 ..........Sept. 44,166 10,833 7,056 3,778 32,327 9,725 17,296 2,775 2,577 961 ..........Oct. 44,471 11,082 6,710 4,372 32,239 10,553 15,972 3,230 2,483 1,150 ..........Nov. 45,203 11,146 7,628 3,519 32,950 10,569 16,726 3,308 2,348 1,106 ..........Dec. 48,694 13,110 8,088 5,022 34,475 11,230 17,543 3,416 2,287 1,109 . 1976—Jan. 250,276 15,016 9,197 5,820 34,159 10,294 18,017 3,407 2,440 1,100 ..........Feb.* For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 . c S u . 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 i n m t g ed ­ Canada ments 1 ments 1 1972............ 325 50,934 215,530 1 1 9 9 7 7 3 4 . . . . . . . . . . . . . . . . . . . . . . . . 4 25 1 1 8 5 5 2 5 , , 0 60 7 0 0 2 1 1 6 7 , , 8 0 3 6 8 8 1 1 9 97 73 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 , , 3 1 7 6 4 4 2 1 , , 5 9 8 1 8 0 5 3 5 7 4 3 3 4 5 0 1 6 0 8 5 1,1 9 1 11 8 5 76 3 5 6 1975—Apr.... 270 60,618 16,818 1974................. 3,337 2,583 56 429 268 1,350 959 J J O A N S M D u u e c u o e a p n l t c g y v _ y t e . . . . _ . . . . . . . . . . . . . . . . 2 3 3 3 3 3 3 3 7 9 6 4 4 1 2 5 3 9 7 2 6 4 0 2 6 6 6 6 6 6 6 5 1 0 0 0 0 1 0 8 , , , , , , , , 4 0 9 3 5 5 1 4 1 0 9 0 3 1 2 2 9 9 6 7 9 2 0 0 1 1 1 1 1 1 1 1 6 6 6 6 6 6 6 6 , , , , , , , , 7 7 8 8 7 8 8 7 5 4 0 0 4 0 1 9 1 5 3 5 3 3 8 5 1975— J J A A J M M F a u u e p u a a n b n l r g r y . y . . e . . r ' r r r r r r . _ _ . . . - _ . - _ . . . _ _ . - . . . . . - . . 3 3 3 3 3 3 3 3 , , , , , , , , 2 4 5 2 3 4 3 2 9 2 0 6 1 0 4 1 3 3 2 4 6 4 0 0 2 2 2 2 2 2 2 2 , , , , , , , , 5 1 5 2 1 4 4 2 2 9 1 7 6 3 5 7 1 1 6 2 6 8 0 4 2 2 1 1 2 6 4 5 5 4 9 7 7 9 6 8 2 3 0 4 4 4 5 4 4 3 3 2 0 5 2 7 0 7 7 5 7 5 7 3 7 3 8 5 4 4 4 5 5 3 3 6 4 0 2 3 0 2 8 1 5 9 6 2 2 0 4 1 1 1 1 1 , , , , , 1 0 0 0 0 9 9 9 4 8 7 5 8 3 9 0 5 1 8 9 9 2 7 4 1 1 1 1 1 1 1 1 , , , , , , , , 2 1 1 1 3 1 1 2 2 3 0 3 3 2 0 7 7 9 7 3 9 8 7 4 1976— A J M F a e p a n b r r — . . . . . . . . . . . 4 2 3 3 1 0 9 0 5 2 5 4 6 6 6 6 1 2 2 1 , , , , 2 5 6 7 7 2 4 9 1 7 6 0 1 1 1 1 6 6 6 6 , , , , 6 6 6 6 5 6 6 6 7 9 6 0 D N S O e c e o p t c v t . . . r . r r r . . _ _ . . _ _ . . . . 3 3 3 3 , , , , 6 8 6 4 7 5 2 8 5 9 8 4 2 2 2 2 , , , , 6 6 4 4 6 5 4 8 1 3 3 4 4 2 2 3 2 4 8 3 3 6 4 0 4 4 4 4 2 5 9 7 5 6 6 4 4 2 2 2 4 4 9 8 1 9 6 4 1 1 1 1 , , , , 2 2 1 1 8 9 8 3 8 9 9 9 1 1 1 1 , , , , 2 1 3 0 5 4 3 9 3 8 0 0 1976—Jan.p .... 4,075 3,016 320 464 274 1,469 1,263 1 Marketable U.S. Treasury bills, certificates of in­ Feb.*\ . . . 4,346 3,233 341 447 325 1 ,480 1,333 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign 1 Negotiable and other readily transferable foreign obligations payable on demand cur 2 r T en h c e i e v s a . lue of earmarked gold increased because of the o o r b l h ig a a v t i i n o g n a w c a o s n i t n r c a u c r tu re a d l m by a t t u h r e i t f y o r o e f i g n n o e t r . more than 1 year from the date on which the changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by Note.—Excludes deposits and U.S. Treasury securities nonbanking concerns in the United States and are included in the figures shown in held for international and regional organizations. Ear­ Table 22. marked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. 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—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.—................. J \ " 3 3 , , 1 4 1 1 9 7 2 2 , , 6 9 3 4 5 8 4 4 6 8 9 4 6 5, , 7 3 2 0 1 2 5 5, , 6 0 4 7 3 4 4 39 1 3 0 2 2 6 3 7 7 1973—Mar.r................. 3,320 2,848 472 7,017 6,147 456 414 Juner................. 3,319 2,796 523 7,285 6,444 493 349 Sept.r................ 3,579 2,931 648 7,625 6,698 528 399 Dec.r................. 4,006 3,290 716 8,482 7,569 493 421 1974—Mar.r................ 4,414 3,590 823 10,475 9,541 407 526 Juner................. 5,139 4,184 955 11,046 10,122 429 496 Sept.r................. 5,605 4,656 949 10,698 9,730 430 537 Dec.r................. 5,828 4,905 922 11,268 10,201 473 594 1975—Mar.r................. 5,804 4,940 864 10,910 9,769 453 688 Juner................. 5,802 4,972 830 10,866 9,574 479 813 Sept................... 5,876 5,028 848 11,692 10,333 525 834 Dec.^................. 5,776 5,169 607 12,079 10,899 555 626 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

MAY 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 Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec.P Europe: Austria............................................. 20 26 22 18 14 26 15 13 15 16 Belgium-Luxembourg........................ 519 480 340 336 294 128 137 132 131 134 Denmark.......................................... 24 23 14 8 9 42 35 22 24 39 Finland............................................ 16 16 12 14 14 120 77 87 114 91 France.............................................. 202 151 137 150 148 430 328 287 311 299 Germany.......................................... 313 352 293 276 149 339 276 346 319 363 Greece.............................................. 39 25 27 21 19 65 59 69 56 33 Italy................................................. 125 109 110 156 171 397 309 300 380 381 Netherlands...................................... 119 122 143 154 113 148 157 135 139 165 Norway............................................ 9 9 8 13 20 36 35 41 48 40 Portugal........................................... 19 13 13 13 4 81 42 32 39 44 Spain............................................... 56 54 59 74 81 369 359 324 315 408 Sweden............................................. 38 32 30 47 24 89 66 74 100 62 Switzerland....................................... 138 155 168 167 129 136 86 113 220 241 Turkey............................................. 8 12 14 22 25 26 33 28 31 28 United Kingdom.............................. 1,258 1,161 1,033 924 913 1,853 1,657 1,557 1,785 1,892 Yugoslavia........................................ 40 52 45 60 76 22 33 32 24 36 Other Western Europe...................... 5 5 4 5 6 21 23 16 19 14 Eastern Europe................................. 70 54 49 38 31 142 114 154 170 219 Total......................................... 3,018 2,851 2,523 2,496 2,241 4,469 3,840 3,763 4,241 4,504 Canada................................................ 306 258 281 296 286 1,618 1,855 1,948 2,101 2,013 Latin America: Argentina......................................... 36 31 30 28 31 67 73 63 52 58 Bahamas.......................................... 291 307 277 210 186 594 615 631 686 660 Brazil............................................... 118 121 127 116 96 463 378 349 385 399 Chile................................................ 22 23 15 13 14 106 69 57 41 38 Colombia......................................... 14 11 11 14 14 51 51 47 47 47 Cuba................................................ * * * * * 1 1 1 1 1 Mexico............................................. 63 72 74 84 85 295 322 305 299 333 Panama............................................ 28 18 27 19 24 132 110 128 103 92 Peru................................................. 14 18 16 19 23 44 46 50 48 41 Uruguay........................................... 2 3 3 2 3 5 15 5 5 4 Venezuela......................................... 49 39 45 56 97 190 180 166 152 165 Other L. A. republics......................... 83 65 67 69 71 193 193 179 163 154 Neth. Antilles and Surinam............... 26 56 60 76 35 20 16 13 12 12 Other Latin America......................... 81 114 125 122 118 147 196 159 192 295 Total.......................................... 828 878 876 827 796 2,305 2,268 2,151 2,184 2,299 Asia: China, People’s Republic of (China Mainland)..................................... 17 8 6 2 6 17 19 32 45 65 China, Rep. of (Taiwan).................... 93 102 100 101 97 139 122 125 152 164 Hong Kong....................................... 19 19 30 29 18 63 83 85 85 111 India................................................ 7 10 21 21 7 37 32 39 48 39 Indonesia.......................................... 60 63 87 104 137 92 117 147 137 169 Israel................................................ 50 62 62 45 29 44 46 60 63 53 Japan............................................... 348 327 273 279 296 1,239 1,326 1,250 1,265 1,137 Korea............................................... 75 47 43 63 69 201 165 178 207 265 Philippines........................................ 25 19 17 15 14 95 83 91 93 99 Thailand........................................... 10 9 6 8 18 24 30 25 21 22 Other Asia........................................ 536 642 841 908 1,027 385 396 468 534 557 Total.......................................... 1,239 1,308 1,488 1,575 1,717 2,337 2,419 2,501 2,650 2,682 Africa: Egypt............................................... 3 5 34 34 37 15 24 15 15 22 South Africa..................................... 43 54 65 79 99 101 104 104 79 92 Zaire................................................ 18 17 9 9 6 24 18 17 22 28 Other Africa..................................... 129 142 215 220 249 234 242 227 273 298 Total.......................................... 193 217 323 341 391 374 387 364 389 440 Other countries: Australia.......................................... 56 60 37 52 55 116 97 99 79 101 All other.......................................... 30 31 18 21 14 49 45 39 48 39 Total......................................... 86 91 55 73 70 165 141 138 127 140 International and regional..................... 158 201 257 267 276 * 1 1 1 Grand total................................ 5,828 5,804 5,802 5,876 5,776 11,268 10,910 10,866 11,692 12,079 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. □ MAY 1976 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1971—Dec..................... 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—June.................... 3,300 3,206 108 712 748 188 61 671 161 377 86 93 Sept..................... 3,448 3,187 128 695 757 177 63 662 132 390 89 96 1 / 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ 3,603 3,274 191 745 749 187 64 703 133 378 86 38 1973—Mar. *•.................. 3,781 3,411 156 802 764 165 63 796 123 393 105 45 June r................... 3,798 3,446 180 805 756 146 65 825 124 390 108 48 Sept.r.................. 4,000 3,620 216 822 788 147 73 832 134 449 108 51 Dec.r.................. 3,886 3,678 290 761 792 145 79 829 125 488 115 53 1974—Mar.'.................. 3,836 3,808 369 737 824 194 81 809 123 488 122 61 June r................... 3,536 3,809 363 699 844 184 138 756 123 515 126 61 Sept.r.................. 3,371 3,949 370 704 881 181 145 796 119 571 122 59 Dec.r................... 3,768 4,159 364 642 918 187 143 1,044 112 569 127 54 1975—Mar.r.................. 4,044 4,139 340 654 962 182 160 1,006 102 540 139 54 June r................... 4,155 4,086 299 634 970 182 154 979 98 556 146 68 Sept..................... 4,104 4,228 366 620 993 177 222 926 95 608 154 67 Dec.?................... 4,128 4,347 395 581 1,054 170 210 1,017 90 603 167 61 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 months1money 2 bills, 3 months money deposit money 3 60-90 moneys 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—Apr............ 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 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 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 5.75 6.38 3.13 3.58 4.52 3.76 5.00 Feb............ 8.70 8.74 8.86 8.81 8.42 6.50 7.27 3.13 3.08 2.86 3.05 5.00 Mar........... 9.04 9.05 8.66 8.46 6.25 7.63 3.13 3.62 2.50 2.12 4.78 8.97 8.65 9.10 8.97 7.69 7.56 3.13 2.76 4.50 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. NOTES TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY: 1 Cayman Islands included beginning Aug. 1973. For a given month, total assets may not equal total liabilities because 2 Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $46,587 million and $47,000 million, respectively, on Feb. 29, 1976. 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

MAY 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 April 30, 1976 Rate as of April 30, 1976 Country Country Per Month Per Month cent effective cent effective Argentina................... 18.0 Feb. 1972 Italy................. 12.0 Mar. 1976 Austria....................... 5.0 Jan. 1976 Japan............... 6.5 Oct. 1975 Belgium...................... 7.0 Mar. 1976 Mexico............. 4.5 June 1942 Brazil......................... 18.0 Feb. 1972 Netherlands.... 4.0 Feb. 1976 Canada...................... 9.5 Mar. 1976 Norway............ 5.0 Oct. 1975 Denmark.................... 8.5 Mar. 1976 Sweden............ 5.5 Jan. 1976 France........................ 8.0 Sept. 1975 Switzerland....... 2.5 Jan. 1976 Germany, Fed. Rep. of 3.5 Sept. 1975 United Kingdom 10.5 Apr. 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, 4% Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5% per cent for pending on type of transaction; rediscounts of certairf 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—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 Mar........ 124.79 5.4383 2.5480 101.431 16.273 21.657 39.064 11.157 194.28 .12113 .33276 Apr......... 123.72 5.4964 2.5667 101.668 16.553 21.411 39.402 11.123 184.63 .11371 .33433 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—Apr......... 43.797 8.0000 41.291 132.66 20.049 4.0596 147.01 1 .7756 25.171 39.080 237.07 May........ 44.278 8.0000 41.581 131.66 20.198 4.0933 146.69 1.7871 25.422 39.851 232.05 June........ 43.856 8.0000 41.502 130.86 20.393 4.1124 146.31 1.7922 25.532 40.086 228.03 July........ 41.442 8.0000 39.154 127.73 19.241 3.9227 139.75 1.7446 24.213 38.272 218.45 Aug........ 39.779 8.0000 37.887 111.79 18.304 3.7700 139.72 1.7140 23.174 37.332 211.43 Sept........ 38.219 8.0000 37.229 105.50 17.834 3.7048 131.40 1.6914 22.501 36.905 208.35 Oct.......... 38.931 8.0000 37.658 104.74 18.089 3.7359 114.84 1.6883 22.769 37.555 205.68 Nov........ 38.929 8.0000 37.638 104.75 18.116 3.7318 114.69 1.6869 22.788 37.683 204.84 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 Mar........ 39.047 8.0000 37.149 102.42 18.022 3.4987 114.83 1.4947 22.702 38.980 194.28 Apr......... 39.032 8.0000 37.215 100.19 18.201 3.3759 114.84 1.4864 22.709 39.531 184.63 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 Henry C. Wallich Robert C. Holland Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee OFFICE OF BOARD MEMBERS OFFICE OF STAFF OFFICE OF DIRECTOR FOR MONETARY POLICY STAFF DIRECTOR FOR MANAGEMENT Thomas J. O’Connell, Counsel to the John M. Denkler, Staff Director Chairman Stephen H. Axilrod, Staff Director Robert J. Lawrence, Deputy Staff Joseph R. Coyne, Assistant to the Board Arthur L. Broida, Deputy Staff Director Director Kenneth A. Guenther, Assistant to the Board Murray Altmann, Assistant to the Board Gordon B. Grimwood, Assistant Director Jay Paul Brenneman, Special Assistant to the Stanley J. Sigel, Assistant to the Board and Program Director for Board Norm and R. V. Bernard, Special Assistant to Contingency Planning Frank O’Brien, Jr., Special Assistant to the the Board William W. Layton, Director of Equal Board Employment Opportunity Donald J. Winn, Special Assistant to the Brenton C. Leavitt, Program Director for Board DIVISION OF RESEARCH AND STATISTICS Banking Structure Lyle E. Gramley, Director James L. Kichline, Associate Director Joseph S. Zeisel, Associate Director Edward C. Ettin, Adviser John H. Kalchbrenner, Adviser Peter M. Keir, Adviser LEGAL DIVISION 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 Counsel Helmut F. Wendel, Associate Adviser BANK EXAMINATIONS AND BUDGETS Robert E. Mannion, Assistant General James R. Wetzel, Associate Adviser W A Cl l i y l b l e d i r e a t m H R . H . F . a H r W a n m a s i l w l l t o a o r c n t e h , , , A D J s r i s r . o e , c c A i t a o s t s r e i s D ta i n re t c D to ir r e ctor A G l a C l r o e y u n n M L se . . l W Ra el ik s e h n , , A A ss s i s s i t s a ta n n t t G G e e n n er e a ra l l C C o o u u n n se s l e l J R J a . o r C b e e o d r r t J t . l M a E n . n d F z l i G s e h . r e , P r e A , r s A e si s t s s , t i a s A n ta s t n s A i t s d t A a v d n is v t e i A s r e d r v iser T P. h o D m . a R s in E g . , M A e s a si d s , t a A n s t s D is i t r a e n c t t o D r irector Ch G a e r n l e e r s a l R C . o M un cN se e l ill, Assistant to the L St e e v p o h n e n H . P . G T ar a a y b l e o d r i , a A n s , s A is s ta si n st t a A n d t v D is i e re r c tor A76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIVISION OF OFFICE OF DIVISION OF INTERNATIONAL FINANCE FEDERAL RESERVE BANK OPERATIONS SAVER AND CONSUMER AFFAIRS tR alph C. Bryant, Director James R. Kudlinski, Director Frederic Solomon, Assistant to the John E. Reynolds, Acting Director Walter A. Althausen, Assistant Director Board and Director Robert F. Gemmill, Adviser Brian M. Carey, Assistant Director Janet O. Hart, Deputy Director Reed J. Irvine, Adviser Harry A. Guinter, Assistant Director Jerauld C. Kluckman, Assistant Director tHELEN B. Junz, Adviser Robert S. Plotkin, Assistant Director Samuel Pizer, Adviser DIVISION OF DATA PROCESSING George B. Henry, Associate Adviser OFFICE OF THE SECRETARY Charles J. Siegman, Associate Adviser Charles L. Hampton, Director Edwin M. Truman, Associate Adviser Bruce M. Beardsley, Associate Director Theodore E. Allison, Secretary Glenn L. Cummins, Assistant Director * Joseph P. Garbarini, Assistant Secretary Robert J. Zemel, Assistant Director Griffith L. Garwood, Assistant Secretary DIVISION OF BANKING fOn leave of absence. DIVISION OF PERSONNEL SUPERVISION AND REGULATION Keith D. Engstrom, Director Charles W. Wood, Assistant Director Brenton C. Leavitt, Director Ralph H. Gelder, Associate Director John E. Ryan, Associate Director OFFICE OF THE CONTROLLER William W. Wiles, Associate Director Peter E. Barn a, Assistant Director John Kakalec, Controller Frederick R. Dahl, Assistant Director Tyler E. Williams, Jr., Assistant Controller Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John T. McClintock, Assistant Director Thomas A. Sidman, Assistant Director Walter W. Kreimann, Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director *On loan from the Federal Reserve Bank of St. Louis. 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 Lawrence K. Roos William B. Walton 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 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

A 80 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 24 pp. $.35. Sec. 15. International Finance. 1962. Functions. 1974. 125 pp. $1.00each; 10or more 92 pp. $.65. Sec. 16 (New). Consumer Credit. to one address, $.75 each. 1965. 103 pp. $.65. The Federal Funds Market. 1959. Ill pp. $1.00 Annual Report each; 10 or more to one address, $.85 each. Federal Reserve Bulletin. Monthly. $20.00 per Trading in Federal Funds. 1965. 116 pp. $1.00 year or $2.00 each in the United States, its posses­ each; 10 or more to one address, $.85 each. sions, Canada, and Mexico; 10 or more of same Industrial Production—1971 Edition. 1972. 383 issue to one address, $18.00 per year or $1.75 pp. $4.00 each; 10 or more to one address, $3.50 each. Elsewhere, $24.00 per year or $2.50 each. each. Federal Reserve Chart Book on Financial and The Performance of Bank Holding Companies. Business Statistics. Monthly. Subscription in­ 1967. 29 pp. $.25 each; 10 or more to one address, cludes one issue of Historical Chart Book. $12.00 $.20 each. per year or $1.25 each in the United States, its Bank Credit-Card and Check-Credit Plans. 1968. possessions, Canada, and Mexico; 10 or more of 102 pp. $1.00 each; 10 or more to one address, same issue to one address, $1.00 each. Elsewhere, $.85 each. $15.00 per year or $1.50 each. Survey of Financial Characteristics of Con­ Historical Chart Book. Issued annually in Sept. sumers. 1966. 166 pp. $1.00 each; 10 or more Subscription to monthly chart book includes one to one address, $.85 each. issue. $1.25 each in the United States, its posses­ Survey of Changes in Family Finances. 1968. 321 sions, Canada, and Mexico; 10 or more to one pp. $1.00 each; 10 or more to one address, $.85 address, $1.00 each. Elsewhere, $1.50 each. each. Capital Market Developments. Weekly. $15.00 per Report of the Joint Treasury-Federal Reserve year or $.40 each in the United States, its posses­ Study of the U.S. Government Securities sions, Canada, and Mexico; 10 or more of same Market. 1969. 48 pp. $.25 each; 10 or more to issue to one address, $13.50 per year or $.35 each. one address, $.20 each. Elsewhere, $20.00 per year or $.50 each. Joint Treasury-Federal Reserve Study of the Selected Interest and Exchange Rates—Weekly Government Securities Market: Staff Stud­ Series of Charts. Weekly. $15.00 per year or ies—Part 1. 1970. 86 pp. $.50 each; 10 or more $.40 each in the United States, its possessions, to one address, $.40 each. Part 2. 1971. 153 pp. Canada, and Mexico; 10 or more of same issue and Part 3. 1973. 131 pp. Each volume $1.00; to one address, $13.50 per year or $.35 each. 10 or more to one address, $.85 each. Elsewhere, $20.00 per year or $.50 each. Open Market Policies and Operating Proce­ The Federal Reserve Act, as amended through De­ dures—Staff Studies. 1971. 218 pp. $2.00 cember 1971, with an appendix containing provi­ each; 10 or more to one address, $1.75 each. sions of certain other statutes affecting the Federal Reappraisal of the Federal Reserve Discount Reserve System. 252 pp. $1.25. Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Regulations of the Board of Governors of the 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Federal Reserve System 10 or more to one address, $2.50 each. Published Interpretations of the Board of Gov­ The Econometrics of Price Determination Con­ ernors, as of Dec. 31, 1975. $2.50. ference, October 30-31, 1970, Washington, D.C. Supplement to Banking and Monetary Statistics. Oct. 1972. 397 pp. Cloth ed. $5.00 each; 10 or Sec. 1. Banks and the Monetary System. 1962. more to one address, $4.50 each. Paper ed. $4.00 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 each; 10 or more to one address, $3.60 each. pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Federal Reserve Staff Study: Ways to Moderate Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. Fluctuations in Housing Construction, Dec. 9. Federal Reserve Banks. 1965. 36 pp. $.35. Sec. 1972. 487 pp. $4.00 each; 10 or more to one 10. Member Bank Reserves and Related Items. address, $3.60 each. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 Lending Functions of the Federal Reserve pp. $.35. Sec. 12. Money Rates and Securities Banks. 1973. 271 pp. $3.50 each; 10 or more Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1962. to one address, $3.00 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Introduction to Flow of Funds. 1975. 64 pp. $.50 Bank Debits, Deposits, and Deposit Turnover— each; 10 or more to one address, $.40 each. Revised Series. 7/72. Improved Fund Availability at Rural Banks (Re­ Yields on Newly Issued Corporate Bonds. 9/72. port and study papers of the Committee on Rural Recent Activities of Foreign Branches of U.S. Banking Problems). June 1975. 133 pp. $1.00; 10 Banks. 10/72. or more to one address, $.85 each. Revision of Consumer Credit Statistics. 10/72. One-Bank Holding Companies Before the 1970 STAFF ECONOMIC STUDIES Amendments. 12/72. Yields on Recently Offered Corporate Bonds. Studies and papers on economic and financial subjects 5/73. that are of general interest in the field of economic Capacity Utilization in Major Materials Indus­ research. tries. 8/73. Credit-Card and Check-Credit Plans at Commer­ Summaries Only Printed in the Bulletin cial Banks. 9/73. (Limited supply of mimeographed copies of full Rates on Consumer Instalment Loans. 9/73. text available upon request for single copies) New Series for Large Manufacturing Corpora­ tions. 10/73. Household-Sector Economic Accounts, by David U.S. Energy Supplies and Uses, Staff Economic F. Seiders. Jan. 1975. 84 pp. Study by Clayton Gehman. 12/73. The Performance of Individual Bank Holding Capacity Utilization for Major Materials: Re­ Companies, by Arthur G. Fraas. Aug. 1975. vised Measures. 4/74. 27 pp. Numerical Specifications of Financial Variables The Growth of Multibank Holding Companies: and Their Role in Monetary Policy. 5/74. 1956-73, by Gregory E. Boczar. Apr. 1976. 27 Inflation and Stagnation in Major Foreign In­ pp. dustrial Countries. 10/74. The Structure of Margin Credit. 4/75. New Statistical Series on Loan Commitments at Printed in Full in the Bulletin Selected Large Commercial Banks. 4/75. Staff Economic Studies shown in list below. Recent Trends in Federal Budget Policy. 7/75. Banking and Monetary Statistics, 1974. Selected REPRINTS series of banking and monetary statistics for 1974 (Except for Staff Papers, Staff Economic Studies, and only. 2/75, 3/75, 4/75 and 7/75. some leading articles, most of the articles reprinted do Recent Developments in International Financial not exceed 12 pages.) Markets. 10/75. MINNIE: A Small V ersion of the Seasonal Factors Affecting Bank Reserves. 2/58. MIT-PENN-SSRC Econometric Model, Staff Measures of Member Bank Reserves. 7/63. Economic Study by Douglas Battenberg, Jared J. Research on Banking Structure and Perform­ Enzler and Arthur M. Havenner. 11/75. ance, Staff Economic Study by Tynan Smith. An Assessment of Bank Holding Companies, Staff 4/66. Economic Study by Robert J. Lawrence and A Revised Index of Manufacturing Capacity, Samuel H. Talley. 1/76. Staff Economic Study by Frank de Leeuw with Industrial Electric Power Use. 1/76. Frank E. Hopkins and Michael D. Sherman. 11/66. Revision of Money Stock Measures. 2/76. U.S. International Transactions: Trends in Survey of Finance Companies, 1975. 3/76. 1960-67. 4/68. Changing Patterns in U.S. International Trans­ Measures of Security Credit. 12/70. actions. 4/76. Monetary Aggregates and Money Market Con­ Changes in Time and Savings Deposits at Com­ ditions in Open Market Policy. 2/71. mercial Banks, July-October 1975. 4/76. Revised Measures of Manufacturing Capacity Revised Series for Member Bank Deposits and Utilization. 10/71. Aggregate Reserves. 4/76. Revision of Bank Credit Series. 12/71. Bank Holding Company Financial Developments Assets and Liabilities of Foreign Branches of in 1975. 4/76. U.S. Banks. 2/72. Changes in Bank Lending Practices, 1975. 4/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin □ May 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 and 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 arid 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

A 84 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories “ 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