Federal Reserve Bulletin, 1976-06
JUNE 1976 FEDERAL RESERVE BULLETIN Changes in the Liquidity of Major Sectors of the U.S. Economy Industrial Production—1976 Revision Federal Reserve Operations in Payments Mechanisms Foreign Exchange Operations: Interim Report The Independence of the Federal Reserve System m Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States, its possessions, Canada, and Mexico is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BULLETIN NUM BER 6 □ VO LUM E 62 □ JUNE 1976 CONTENTS 463 Recent Changes in the Liquidity of Al Financial and Business Statistics Major Sectors of the U.S. Economy Al Contents 470 Industrial Production—1976 Revision A2 U.S. Statistics A58 International Statistics 481 Federal Reserve Operations in Payment Mechanisms: A Summary A76 Board of Governors and Staff 490 Interim Treasury-Federal Reserve A78 Open Market Committee and Staff; Foreign Exchange Operations Federal Advisory Council 493 The Independence of the A79 Federal Reserve Banks and Branches Federal Reserve System A80 Federal Reserve Board Publications 497 Membership of the Board of Governors of the Federal Reserve System A85 Index to Statistical Tables 499 Statements to Congress A87 Map of Federal Reserve System 513 Record of Policy Actions Inside Back Cover: of the Federal Open Market Committee Guide to Tabular Presentation and Statistical Releases 521 Law Department 550 Announcements 556 Industrial Production PUBLICATIONS COMMITTEE 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
Recent Changes in the Liquidity of Major Sectors of the U.S. Economy This article was prepared in the Government Governmental policies contributed to the Finance Section of the Division of Research and success,of financial rebuilding efforts. Various Statistics. fiscal measures, including tax cuts and expanded income transfer programs, increased disposable The financial condition of most sectors of the personal income and after-tax corporate profits. U.S. economy has improved markedly over the These policy initiatives combined with the past 2 years, following an erosion of financial slowdown in economic activity created a record strength during the preceding decade. The Federal budget deficit in 1975 that was financed nearly uninterrupted expansion of economic ac largely through issuance of Treasury bills and tivity during the 1960’s and early 1970’s, and shorter-term coupon securities. The ability of the inflation that accompanied it, caused the Government to sell such a large quantity changes in the attitudes and behavior of many of debt with little upward movement of interest economic units, thereby leading them to adopt rates can be attributed not only to declines in financial positions that greatly increased their private demands for money and credit but also vulnerability to economic adversity. The recent to the desire of private investors to hold Federal recession revealed this heightened exposure to securities to improve the safety and liquidity of risk and prompted widespread efforts to reduce their asset portfolios. By concentrating the bulk indebtedness (especially short-term indebt of its offerings in the shorter end of the maturity edness), to increase holdings of liquid assets, spectrum, the Treasury also minimized its direct to rebuild equity cushions, and thus generally competition with businesses seeking to fund to restructure financial positions. These efforts their short-term debt through the sale of longerhave been reflected in a number of important term issues. indicators of financial activity, such as repay At the same time, the Federal Reserve sought ments of consumer and business loans and flo to foster an expansion of liquidity consistent tations of new bond and stock issues. with both a vigorous recovery and a gradual The process of strengthening financial posi unwinding of inflationary pressures. In this en tions has interacted in several ways with the vironment, interest rates—particularly those on recent course of economic activity. During the short-term instruments—declined sharply in late course of the recession, business firms and 1974 and early 1975 and changed little, on households reduced their expenditures relative balance, during the first year of recovery. The to income in order to channel resources into the lower level of interest rates on market instru restoration of financial soundness. More re ments encouraged rapid growth in consumer cently, during the recovery, rising incomes, time and savings deposits at banks and nonbank profits, and stock prices have abetted the finan thrift institutions. These deposits, an important cial restructuring process. Also, declines in loan component of household liquid assets, grew at demand, together with large deposit inflows, an annual rate of nearly 15 per cent from the have provided financial intermediaries with an end of 1974 through the first quarter of 1976. opportunity to improve their balance sheets. The In contrast, the narrowly defined money stock progress made toward sounder financial posi (Mx)—currency plus demand deposits—ex tions could have an important bearing on the panded only moderately in 1975 and early 1976, durability of the current recovery. suggesting that there were increased efforts by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
464 Federal Reserve Bulletin □ June 1976 the public to economize on non-interest-bearing Households assets. More recently, demands for money have Percent , ; 1 / >. Dollars shown signs of strengthening, and growth in Mx has picked up. Also, interest rates have begun Per capita deflated net worth to edge up, as the Federal Reserve, in light of the strengthening money demands, has become less accommodative in providing reserves to the banking system and as private demands for credit have increased. Although sharing this common backdrop, the i «■■■■ i i ■ financial restructuring has varied widely in dif 1964_________1968_________1972_________1976 ferent sectors of the economy. This article re Data for all charts are seasonally adjusted, with flows at views recent changes in the financial positions annual rates. Unless otherwise noted, all data are from the of several important sectors, relating recent pat flow of funds accounts. Household figures include personal trusts and nonprofit or terns to financial developments since the mid- ganizations. Per capita deflated net worth is financial assets 1960’s. minus financial liabilities divided by population and the con sumer price index. Population, Bureau of Census; consumer price index (1967 = 100), Bureau of Labor Statistics. HOUSEHOLDS in stock prices eroded net financial wealth. One Financial positions began to improve for house indication of the problem was a sharp rise in holds somewhat earlier than for other sectors. the delinquency rate on consumer instalment The leveling-oft of demand for consumer dura loans beginning in the second half of 1973. ble goods in late 1973 resulted in a slowing of Under these conditions, households drew credit growth and contributed to a downturn in back from their extended financial positions. the ratio of total household debt to personal The retrenchment was due not only to desires income in 1974. This ratio had also fallen in to restructure finances, but also to substantial the late 1960’s, when the rapid growth in con reductions in auto purchases reflecting uncer sumer indebtedness was more than matched by tainties about the price and availability of gaso an expansion of personal income. Growth in line. Households assumed new debt at a much both home mortgage and consumer loans accel more modest pace and accelerated their repay erated between 1970 and 1973, however, fos ments of existing debt. Extensions of new in tered by the rise in economic activity, by ac stalment debt, for example, increased only commodative credit conditions early in the pe slightly in 1974 and remained unchanged riod, and by demographic factors favoring an through most of 1975, whereas repayments in increase in new household formation. The creased in both years. A rise in instalment debt unusual surge in indebtedness may have also extensions near the end of 1975 and continuing been stimulated by rising stock prices, which into 1976 appears to signal a change in con greatly increased the financial assets of house sumer attitudes. Despite this increase, the ratio holds, and by a desire to acquire real assets prior of total debt to personal income fell further to the removal of price controls—although there through the first quarter of 1976 to reach a level is little direct evidence on this last point. 4 per cent below its peak in 1973. Financial pressures on households became Household efforts to restore real net worth apparent in late 1973. The rapid rise in borrow positions over the past few years have also been ing over the preceding few years had increased evidenced by high rates of savings. However, the proportion of household income required to real per capita financial net worth decreased service debt. In 1973 price increases—particu through the middle of 1974 mainly because of larly for food—cut into the amount of income falling stock prices. At that time, this measure available to meet such obligations, and declines of economic well-being had reached its lowest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Liquidity of Major Sectors of the U.S. Economy 465 point since 1958. The rise in stock prices and and the mildness of the 1970 recession led credit a rapid accumulation of time and savings de market participants to the view that the possi posits and Government securities since late 1974 bility of major financial problems was remote. have restored a portion of the decline in the real That assessment was proved wrong when the per capita net worth of households, which nev general credit squeeze that developed in 1974 ertheless remains well below its previous peak. and the subsequent steep declines in output and income late that year and early in 1975 exposed the weakened financial positions of many non financial corporations. As the public became aware of corporate financial problems, risk pre NONFINANCIAL CORPORATIONS miums on the securities of lower-rated corpora Nonfinancial corporations have been restructur tions rose sharply. ing their balance sheets since late 1974. The major elements of this process have been the funding of short-term debt, an accumulation of liquid assets, and a sharp reduction in reliance Nonfinancial corporations on external sources of funds to finance invest Per cent r cent ment expenditures. These measures were made 6.00 mm 60.0 necessary by the severe deterioration that had 51.7 occurred in financial positions in preceding Net interest paid/ income originating years. 43.3 The deterioration of balance sheets was rooted in the growing discrepancy after the 35.0 Liquid assets/ mid-1960’s between the amount of corporate short-term liabilities 26.7 investment and the volume of funds generated internally through retained earnings and depre 18.3 ciation allowances. When corporations are forced to rely on external financing, they typi cally find that the tax deductibility of interest 42.50 payments provides an incentive to favor debt 38.55 over equity issues. Corporations may also have Total investment/internal funds been reluctant to issue new shares because they 34.58 wished to promote growth in earnings per share through increases in their debt to equity ratios. 30.63 As a result, the cushion against adverse devel opments provided by profits was reduced as the Short-term debt/total debt 26.68 share of income originating in the corporate 22.70 sector required for net interest payments dou bled between 1964 and 1974, and the ratio of after-tax profits to income originating fell 20 per cent. Moreover, an increasing reliance on Liquid assets are currency, demand and time deposits, U.S. short-term borrowing and a declining ratio of Government and State and local government securities, com mercial paper, and security repurchase agreements. Short-term liquid assets to short-term debt during much of debt includes short-term credit market instruments and 60 per the same period made firms’ profitability, and cent of bank loans. Short-term liabilities are short-term debt plus tax liabilities and trade debt. Net interest paid is interest even their solvency, more vulnerable to shifting paid less interest received. Income originating is domestic economic and financial conditions. national income originating in nonfinancial corporations. Inter nal funds are undistributed profits, capital consumption allow Lenders might have discouraged these trends ance, and inventory valuation adjustment. Total investment by demanding commensurate risk premiums. includes fixed investment and changes in inventories. Income originating and net interest paid are from Dept, of However, steady economic growth in the 1960’s Commerce GNP accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
466 Federal Reserve Bulletin □ June 1976 Nonfinancial corporations reacted to the in risk than they were in the 1960’s and even the creased threat of insolvency and the rising cost early 1970’s. Furthermore, the degree of their of maintaining risky financial positions by de financial vulnerability may be understated be voting a large part of their financial flows in cause of increases in contractually fixed pay 1975 and early 1976 to the restoration of safer ments that must be made out of income such balance-sheet relationships. A better balance as for equipment leases and unfunded pension between financing needs and internally gen liabilities. On the other hand, some corporations erated funds was achieved by inventory reduc may not feel a need to re-establish the more tions and sluggish capital spending on the one conservative financial ratios that had prevailed hand and by rising profits combined with stable earlier because of significant changes that have levels of dividends on the other. External fi since evolved in the economic environment. For nancing activity was shifted away from short example, the need to hold liquid assets may term credit markets toward the bond and equity have been reduced to some extent by the re markets where a total of $37 billion was raised moval in the early 1970’s of Regulation Q in 1975—a 50 per cent increase over the pre ceilings on large-denomination bank certificates vious year. The proceeds from these offerings of deposit (CD’s). This change may be viewed and the increased volume of internally generated by businesses as decreasing the risk of a restric cash were used to retire short-term debt and to tion in credit supplies brought about by an purchase liquid assets. In 1975 nonfinancial abrupt diversion of savings flows away from the corporations paid down $13 billion of bank banking system. Also, despite lower interest loans—a major portion of which were of short rates and higher stock prices, the nominal cost maturity—and $2 billion of commercial paper, of raising capital remains quite high by histori thereby reducing the ratio of short-term debt to cal standards, and tax laws continue to encour total debt by 11 per cent. Reflecting also the age use of debt financing. sizable liquid asset acquisitions—especially U.S. Government securities—the ratio of liquid assets to short-term liabilities rose sharply in STATE 1975. The reduction in financial pressures on AND LOCAL GOVERNMENTS corporations is seen in a decline in the propor tion of income originating in corporations de A number of State and local governments found voted to net interest payments. themselves in straitened financial circumstances As the economy has continued to expand last year. Mounting deficits and the reluctance through the early part of 1976, the pace of of lenders to extend additional credit forced financial restructuring by nonfinancial corpora cutbacks in spending plans and the development tions has slackened. Renewed inventory accu of special financing arrangements. The aggre mulation in the first quarter, coupled with a gate data in the accompanying chart, however, modest rise in spending for plant and equip do not indicate a marked financial deterioration ment, has raised financing requirements by more for the State and local sector as a whole over than the increase in internally generated funds the past decade. In fact, the debt burden of State during that quarter. Although a large amount and local governments, as measured by the ratio of bank loans were again repaid, short-term of debt to tax revenues, actually declined business borrowing from other sources rose through much of the 1960’s and the early sufficiently to produce a stable level of over-all 1970’s—although rising interest rates caused short-term indebtedness. some increase in the proportion of income de Whereas nonfinancial corporations have made voted to debt service. The ratio of debt to tax marked progress in restructuring their financial revenue changed little from mid-1973 to midpositions, by many conventional measures they 1975, and it subsequently resumed its down remain less liquid and more exposed to financial ward movement as a high, but stable, rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Liquidity of Major Sectors of the U.S. Economy 467 new debt issuance has been accompanied by a in municipal short-term debt in the third quarter climb in tax revenues. of 1975 and in the first quarter of 1976 largely A more serious problem for some State and reflects the restructuring efforts of financially local governments in the late 1960’s was the troubled localities, including special arrange growing reliance on short-term debt. To some ments made by New York City. extent the increase in such debt reflected expan sion of a program in which the Federal Govern ment guaranteed local short-term public housing COMMERCIAL BANKING notes, but it also resulted from the reluctance of State and local treasurers to issue long-term Financial restructuring has not been confined to debt as interest rates rose and from the efforts the spending sectors. Commercial banks and by some units to accelerate inflows of cash other financial intermediaries have also been through the sale of bond, revenue, and tax rearranging their liabilities and rebuilding their anticipation notes. In 1971, with the advent of asset liquidity following a prolonged period of revenue sharing and a decline in interest rates, decreasing financial safety. the share of total municipal debt represented by The development of a market for large nego short-term issues began to fall. It continued to tiable CD’s in the early 1960’s enabled many decline through mid-1974 before picking up commercial banks to control the size of their again late in the year. When these short-term liabilities and led to a trend away from largely debt figures are disaggregated, it becomes ap passive reliance on inflows of demand and con parent that much of the increase in such debt sumer time and savings deposits. This trend in the late 1960’s and early 1970’s took place accelerated greatly in the early 1970’s when in a few localities. State and local units in New ceilings on the rates of interest banks could pay York, for example, accounted for 50 per cent on large time deposits were suspended. How of the rise in short-term debt in the late 1960’s, ever, because of the short maturity and limited and by the early 1970’s they had issued nearly Federal insurance protection of most liabilities 40 per cent of all short-dated municipal debt subject to direct commercial bank management, outstanding. If the obligations of New York banks that rely heavily on such liabilities, espe governmental units are excluded, the 1971 peak cially to finance longer-term assets, are poten in the ratio of short-term to total debt is reduced tially vulnerable to credit conditions in which by about one-third. The very sharp reduction short-term rates (at which they obtain these funds) rise above longer-term rates (at which they have made loans), and to loss of creditor State and local governments confidence. The latter threat became apparent in 1974 after the difficulties of the Franklin Percent I Percent National Bank were perceived. Bank risk exposure over this period was also heightened by changes in the composition of asset portfolios. Holdings of liquid assets were reduced as banks became convinced that mar kets for managed liabilities lessened the need to hold secondary reserves. In addition, in creased risk exposure in the spending sectors caused a lowering of the quality of the bank loan portfolio, although this was not fully rec ognized before the onset of the recession. Fi nally, the growth of bank equity positions lagged the growth of asset portfolios, reducing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
468 Federal Reserve Bulletin □ June 1976 Commercial banking NONBANK Per cent Per cent THRIFT INSTITUTIONS 35.0 Savings and loan associations and mutual sav 29.8 ings banks play a key role in providing credit to the residential mortgage market. Conse 24.7 quently, the financial health of these institutions has an important impact on the housing sector. 19.5 Thrift institutions have repeatedly experienced financial difficulties in periods of sharply rising 14.3 interest rates because their liabilities have shorter maturities than their assets. In other 9.2 respects, the balance sheets of thrift institutions as a group had not weakened severely in the 4.0 1960’s and early 1970’s. Although there had been some increase in borrowings by savings Commercial banking consists of chartered commercial and loan associations from the Federal home banks, their domestic affiliates, Edge Act corporations, agen loan banks in the late 1960’s, the proportion cies of foreign banks, and banks in U.S. possessions. Demand and other time deposits are total deposits less large negotiable of assets acquired from inflows of savings and CD’s. Liquid assets are U.S. Government securities, vault of consumer time deposits changed very little. cash, and deposits at F.R. Banks. In the late 1960’s liquid asset totals held steady while total assets grew rapidly, but in early 1971 the cushion available to absorb whatever losses the thrift institutions began accumulating li might arise. quidity again, and the ratio of liquid to total The weakness in loan demand and the rapid assets remained above its 1970 trough through inflows of time and savings deposits associated the 1973-74 period of high interest rates. The with the lower market interest rates since the equity cushion of thrift institutions, on the other sharp contraction of 1974 facilitated commercial hand, as measured by the ratio of financial net banks in their restructuring efforts in 1975 and worth to total assets, declined steadily. early 1976. Savings and smaller time deposits grew fast enough to permit banks to reduce their CD’s outstanding by $20 billion between the end of 1974 and March 1976, while increasing Thrift institutions the liquid assets in their portfolios. Loan volume Per cent Per cent remained unchanged, on balance, over this time span, but holdings of U.S. Government securi ties rose $40 billion. By March 1976 the ratio 93.15 of liquid assets to total assets had increased 23 per cent from its trough in 1974. During this 77.85 period banks tried to bolster profits by main taining a substantial spread between their loan 62.55 rates and the cost of funds, and even though large losses were incurred on some loans and other loans provided no current income, they managed to expand their equity base. The ratio of financial net worth to total assets rose in 1975 Liquid assets are currency, demand and time deposits, com for the first time in several years. mercial paper, and security repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Liquidity of Major Sectors of the U.S. Economy 469 Inflows of savings and consumer time depos potential for capital loss. By the first quarter its into nonbank thrift institutions have been of 1976 the proportion of total assets held in quite heavy in 1975 and 1976. They have been liquid form had climbed 70 per cent from its used to accumulate liquid assets and home trough in 1970 and stood at its highest level mortgages and to repay debt. The ratio of fi since the early 1960’s. Under these circum nancial net worth to total assets has continued stances, the favorable balance-sheet positions of to fall, but the negative impact of this develop the thrift institutions leave them in a good posi ment has been somewhat mitigated by the tion to meet new mortgage demands in a normal build-up in liquid assets, which carry reduced financial climate. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
470 Industrial Production—1976 Revision This article was prepared by Clayton Gehman, as compared with its pre-recession high of 132. formerly Chief of the Business Conditions Sec Production of consumer goods in May was tion, Division of Research and Statistics. about 5 per cent higher than in September 1974, while business equipment and materials were The first general revision of the industrial pro still below their earlier highs. Output of materi duction index in 5 years has just been com als was up about one-fifth from its 1975 low pleted—the fifth revision since the index was point and at about 80 per cent of capacity. first published 50 years ago. Revisions in the Stocks of materials were reduced in 1975, and total index have generally been upward, by recently they have shown little increase as use small amounts from 1963 to 1971 and by 3 to of materials in output of products has expanded 5 per cent since then, except during the 1974-75 about as fast as output of materials (Charts 2 curtailment period (Chart 1). These higher and 3). Meanwhile, total inventories have been levels reflect in large part upward revisions in rising, reflecting increases in stocks of final output of business equipment, durable consumer products. goods, and industrial materials used to produce The main improvements in the industrial pro these and other products.1 duction (IP) measures relate to more detailed According to the revised index as well as the and comprehensive information for analyzing old, expansion in total industrial production output developments in oil and gas extraction came to an end in the autumn of 1973. The and refining, in electric and gas utility opera revised index shows that production fluctuated tions, and in industries that produce chemicals, within a narrow range for almost a year after construction products, and motor vehicles. Ad that, whereas the old index showed some eas ditional measures of energy production by stage ing. Both indexes dropped sharply from Sep of processing have been developed to provide tember 1974 to March 1975—with the revised new U.S. summary measures, which account index down 15 per cent compared with 12 per for about one-eighth of total IP. cent for the old. This period of contraction—6 These revisions in IP provide improved months—was the shortest for any major reces and/or new monthly physical data for use in sion on record. Recovery since March 1975 has measuring and analyzing industrial use of en been faster than the old index indicated, and ergy, labor, materials, and plant capacity2 and by May 1976 the revised total was estimated changes in physical stocks of goods, labor pro to be up to 129 per cent of the 1967 average ductivity, and unit labor costs. Data for these related measures have been calculated to pro vide historical comparisons with IP and with 1A table at the end of this article shows monthly figures for the total index and three major market groups back to 1963. Recent figures for both the total index 2 The new capacity measure for all materials in the and individual series will be released regularly in the revised IP, shown in Chart 2 and described briefly in G.12.3 release, “Industrial Production,” beginning in an announcement on pp. 553-54 of this Bulletin, is mid-July. The July release will include estimates for of strategic analytical importance because capacity uti June and revised indexes from June 1975 to May 1976. lization margins for materials have typically been much The G.12.3 release is available without charge on re narrower than for industrial products and because output quest from the Board’s Publications Services, Division and inventories of materials exhibit large cyclical of Administrative Services, Board of Governors of the changes. Also, these compilations are based on rela Federal Reserve System, Washington, D.C. 20551. tively firm data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production—1976 Revision 471 CHART 1 Industrial production index 100 Seasonally adjusted data; latest are May 1976 estimates. Major auto strike in late 1970. each other for analysis of economic develop SUMMARY OF REVISIONS ments (Chart 2). The number of individual series in IP has been The generally higher levels shown by IP in increased from 227 to 235, and about 30 addi recent years suggest greater growth in industrial tional subdivisions of the index have been de plant capacity and in output per unit of energy veloped for publication. All of the individual and of labor input than was implied by the component series of IP have been adjusted, index published earlier. Also, the revised IP where necessary, to the Censuses of Manufac continues to suggest, partly on the basis of tures and Minerals benchmark data for changes output differences between materials and prod from 1963 to 1967 and to comprehensive annual ucts, that inventories had been accumulated at data from a variety of other sources through an extraordinary rate over an extended period 1973. For the motor vehicle group, the adjust before the end of 1974. More recently, the ments to new annual production levels have IP-based data have indicated greater liquidation raised the series by amounts that are substan and then an earlier turnaround than the deflated tially higher now than in 1963. Separate series book-value data. beginning with 1967 are now shown for large A detailed discussion of this revision, analy and small autos, consumer-type utility vehicles, ses of developments shown by the revised index and business vehicles. and related economic series, and complete sta The earlier published components for the pe tistical tables for the revised total index and its riod before 1963 have been linked in 1963 to components will be published in Industrial Pro the revised series. The 1967 comparison base duction—1976 Edition.3 (1967 = 100) has been retained for the new index, and 1967 value-added weights continue 3 This volume is now scheduled to be available later to be used for the compilations beginning in this year, as are revised figures in machine-readable 1967. The revised gross-value series for IP form. Readers are asked not to request these materials until their availability is announced in the Bulletin. products are based on 1972 dollar weights in In addition to a reprint of the present article, Indus stead of the previously used 1963 dollars. Al trial Production—1976 Edition will present analytical lowances for seasonal fluctuations and for irreg and descriptive material on the 1976 revision—includ ing details on classifications, relative weights, and ular monthly movements have been revised.4 sources of underlying data; a review of economic de velopments as indicated by the revised index and its major components—consumer goods, business equip ment, and industrial materials—and by related data; and 4 Revisions of seasonal adjustment factors have been statistical tables showing data for the total index back based on data through 1974. That year rather than the to 1919, and figures for the components of IP as far latest year, 1975, has been used as the terminal year back as they are available. for these calculations in order to provide measures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
472 Federal Reserve Bulletin □ June 1976 In the general revision of IP, the levels of CHART 2 the broad divisions for materials and products Industrial production and in the market grouping (Chart '3-A) and for related physical measures durable and nondurable manufacturing in the 100 industry grouping (Chart 3-B) are raised by about the same relative amounts. Hence, the 160 relationships between those major divisions of 140 total IP are changed only a little. As already indicated, most of the upward 120 revisions in the index are for business equipment and durable consumer goods (Charts 3-C and 100 3-E) and for their component parts, which are produced in the machinery, transportation equipment, and furniture industries, and for nondurable goods materials produced in the textile and plastics products industries. These upward revisions are partly offset in total IP by decreases in the fabricated metal products, ord nance, and food industries. Reduced levels of output for consumer paper products, as well as for foods, contribute to some downward revi sions that were made for the market group for nondurable consumer goods. The revised con struction products group (Chart 3-F) shows more growth than did the previous series, be cause of the additional representation of rapidly growing plastics and aluminum products and of mobile homes (formerly classified in durable Seasonally adjusted monthly data except for new quarterly consumer goods). capacity series for all materials in revised IP. Physical stocks based on weighted combination of series for materials other In the mining industries, there have been than farm products. Energy input based on IP use of coal, upward revisions for stone and earth materials electricity, natural gas, and refined petroleum; series combined with value-of-purchase weights. Labor input represents all-em and for oil and gas well drilling. In the utility ployee hours, including government-owned plants. IP ratios industry, new measures are introduced to repre for energy, labor, and unit labor costs are 2-month averages lagged. Major coal strike affected energy series in 1971. Latest sent natural gas transmission activity and elec figures are based on May 1976 estimates. tricity generation beginning in 1967. Both of these series, however, show less growth than the old utility series. The addition of natural group for total energy, which has been pub gas transmission has increased the scope of the lished separately since late 1973 (Chart 3-D).5 combined mining and utility industry divisions Revisions in IP for the period from 1963 to to 12 per cent of total IP, and these two divisions 1967 reflect only adjustments to the final Census now include all major energy industries except benchmark production indexes for those years, petroleum refining. Their combined movement and they are generally smaller than the revisions is close to that of the IP supplementary market for the more recent period. Total IP for 1967 largely free of the temporary effects of the cyclical 5 Related to these energy production series are newly downturn and recovery on seasonal patterns. As a result published monthly data, beginning in 1963, on indus of this choice of procedure, the revised seasonally trial electric power use. About 130 group and individual adjusted indexes show more cyclical change in the 12 industry series are shown separately, including many months ending September 1975 than if 1975 had been not used in the IP index; these data were described in used as the terminal year. the Bulletin for January 1976, pp. 11-14. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production—1976 Revision 473 CHART 3 Industrial production revised Ratio scale, 1967=100 140 Seasonally adjusted monthly data; latest are May 1976 estimates. Major auto and coal strikes affect series in 1970, 1971, and 1974. Energy is a supplementary market group, including various manufacturing, mining, and utility series. is raised relative to 1963 by only 0.4 per cent, trial portion of the economy has grown moder but changes in major industry and market groups ately faster since 1963 than it did in the earlier are generally much larger. One reason for the postwar period when growth was interrupted by small revision in the total is that some 1967 the recessions of 1948^9, 1953-54, and Census data then available had been introduced 1957-58 and the average rise amounted to 4.2 in IP at the time of the 1971 general revision. per cent. The revisions in the total index and its com The rate of growth for consumer goods has ponents beginning with 1963 affect the pub been somewhat faster in the recent period than lished major groups back to 1954 or 1947 and earlier (4.3 versus 4.1 per cent); for business the major market and industry divisions back equipment, the expansion has been considerably to 1939 or 1919 because all of these indexes, faster (6.1 versus 4.0 per cent), with the most on a 1967 base, continue to be linked in bench rapid rises occurring from 1963 to 1966 and mark years. from 1972 to 1974. For output of construction products and of industrial materials, the larger increases in recent years have reflected the ac celerated impact of private investment demands. GROWTH TRENDS The major remaining portion of IP con From 1963 to 1974 the revised total IP expanded sists of defense and space output, which ac at an average annual rate of 4.6 per cent (Table counts for about one-eighth of total industrial 1). Despite the slowdown in 1966-67 and the products and, allowing for defense use of in recessions in 1969-70 and late 1974, the indus dustrial materials, for almost as much of total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
474 Federal Reserve Bulletin □ June 1976 TABLE 1 came a major recession at least as intense as Expansion in Industrial Production that in 1957-58.6 Analysis of the behavior of component groups Annual percentage increase of IP—such as consumer goods and business Propor equipment and total products and materials— tion Grouping in 1946 1963 1946 has proved useful in appraising cyclical devel 1967 to to to 1963 1974 1974 opments. These fluctuations in recent years have been influenced as much as—or probably even Total ............................. 100 4.2 4.6 4.7 more than—in earlier postwar recessions by Consumer goods ___ 28 4.1 4.3 4.5 changes in the markets for consumer goods. Business equipment 13 4.0 6.1 5.1 Construction products 6 3.7 4.6 3.9 Consumer buying and credit extension reached Materials ..................... 39 4.3 4.7 4.7 sharply advanced rates in early 1973. Prices at that time began to rise sharply, with the result Note.—Data for business supplies and defense equipment, representing about 14 per cent of the total, are not shown that consumer demands edged off and output separately. Business equipment rose 12 per cent per year from of consumer goods leveled off or showed little 1963 to 1967 and 5 per cent from 1967 to 1974. Figures calculated by method of least squares. further rise. Sales of autos, in fact, began to decline in the spring of 1973 and by the year-end selective reductions had occurred in output of IP. An expansion of three-fifths in this sector autos and some other consumer goods. of industry from 1964 to 1968 was a major The major reductions in output during the factor in stimulating private demands and ac winter of 1973-74 were in large autos and celerating IP growth through 1966 and in limit energy products used for consumer and com ing the subsequent slowdown in 1967; also, the mercial purposes; these curtailments were in subsequent cutback in defense output, which fluenced by the foreign oil embargo and by the amounted to 30 per cent over the 1969-71 accompanying shifts in cost and availability of period, was an important factor in the 1969-70 petroleum products. Output of mobile homes, industrial curtailment. which had been sharply reduced in 1973, con For the entire period from 1946 to 1974, the tinued downward throughout 1974. New hous average annual rate of increase for IP has been ing starts were also reduced sharply during 1973 4.7 per cent. From the beginning of this century and 1974 from the peak levels reached in the rate has been around 4.0 per cent; any rate 1972—about one-half above earlier record rates. for such an extended interval, however, is less Nevertheless, IP construction products and firmly based because of widespread changes in home goods were maintained at high levels the economy and in the types of data used to during 1973 and most of 1974. measure growth. Output of industrial materials—chemicals, paper, textiles, metals, and mineral fuels—came so close to capacity levels in 1973 that there was little room for further expansion (Chart CYCLICAL FLUCTUATIONS 2-A). Meanwhile, market availability of these Cyclical fluctuations during the 1960’s were materials during 1973 and most of 1974 was limited in large part by sustained, upward de being limited by continued heavy accumulations mand pressures associated with worldwide eco for inventory. This is indicated for materials by nomic expansion and the war in Vietnam. For the accompanying experimental monthly indi example, total IP, which traces monthly devel cator of physical stocks. Use of materials in the opments for a highly volatile sector of the economy, showed only relatively minor fluctu 6 The 1974-75 IP decline is presently shown to have ations until 1969-70 when there was a moderate been 15 per cent, while the 1957-58 curtailment was 13 per cent. This difference is not especially significant but extended downturn. Then in 1974-75, after considering the measurement problems involved and the rapid expansion from 1971 to mid-1973, there preliminary nature of the data for 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production—1976 Revision 475 manufacture of products continued high for CHART 4 some months during 1974 after consumer and Cycles in industrial production business demand had begun to decline and con sequently some materials were going into in ventories of products. For a time, the lack of adequate market sup plies of materials limited increases in output of some industrial products. Nevertheless, output of business equipment, equipment parts, non durable consumer goods other than clothing, and general business supplies, together with coal and metal mining, continued to expand until the autumn of 1974. These increases in production were accompanied by some expan sion in the industrial input of materials and of energy—both electricity and total energy—from the moderately reduced levels of early 1974. Meanwhile, industrial labor input eased off somewhat further (Charts 2-B and 2-C). The IP revision provides considerable evi dence that the boom in business and consumer investment activities was greater than had pre viously been indicated. In the context of rapidly rising prices, expansion during 1972-74 in out put of business equipment, durable consumer goods, construction products, and materials for business inventory holdings brought output for investment purposes to such high levels in 1973 6 0 6 12 18 6 0 6 12 18 Months Months Months Months and 1974 that continued expansion at earlier before__________________after before after rates became increasingly unlikely. Meanwhile Seasonally adjusted data; latest month shown for 1976 is inventories were built up so rapidly and to such March. Each date indicates the last month preceding the general high levels relative to sales that a subsequent decline in industrial production. cutback in production became almost inevitable. These and other economic developments, do While the cycles have varied considerably in mestic and foreign, set the stage for the broadest pattern and extent, as Chart 4 shows, the length and deepest curtailment in industrial output of the curtailment phase in each period except since 1957-58. That recession had previously 1937-38 and 1974-75 has been about 8 months. been the most severe of the postwar period, as The decline continued much longer in the shown in Chart 4, which compares the monthly 1937-38 recession than in either 1957-58 or patterns of IP during seven major cyclical 1974-75, and it was about twice as deep. The downturns and recoveries—including the 1957-58 cycle shows the most pronounced V prewar 1937-38 period. The color curves in the shape. The reduction in output during the recent chart show to what extent production was af recession most closely resembled the 1957-58 fected during two periods of limited slow downturn. According to the revised index, the downs—1951-52 and 1966-67—when de recovery has been faster than the old index creases in some industries were offset to a large indicated but not so fast as the recovery in extent by expansion in output of goods in 1958-59—even if allowance is made for the fluenced by demands associated with the Korean advance effects of an impending national workand Vietnam wars. stoppage in the steel industry in June 1959. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
476 Federal Reserve Bulletin □ June 1976 Fluctuations in durable and nondurable man in 1957-58, recovered more quickly. In contrast ufacturing have varied considerably from cycle to the larger decline in consumer goods in the to cycle. In the latest recession the reduction recent recession, output of business equipment in output of nondurable goods, reflecting mainly was reduced less than in 1957-58, and its re the extensive liquidation in inventories of such covery has been less rapid than in 1958-59. goods, was greater than it had been in 1957-58 Both the 1974-75 and 1957-58 curtailments or in any other postwar recession, but not so were preceded by rising prices for long periods large as in 1937-38. For durable goods, espe during which output of materials was high rela cially autos and business equipment, the pro tive to output of products, and large inventories duction cutback was much less severe in the of both materials and products were being ac latest period than it had been in 1937-38, when cumulated. In the subsequent liquidation in consumer and business confidence was shaken 1974-75, materials output was reduced much by fears of a repeat of the 1929-32 depres more than output of products, and in the recov sion. ery phase materials rose faster than products. Monthly fluctuations during the recent cycle For nondurable goods materials the read in the four major IP market measures—materi justment was relatively prompt; output of these als, total products, consumer goods, and busi materials, after declining one-fourth to a low ness equipment—are shown in Chart 5 in the in March 1975, rose sharply, and by early 1976 historical perspective of three other major post it had reached its pre-recession level. Output war adjustments. Curtailment in output of ma of durable goods materials—carrying about terials in 1974-75 was about as great as in twice as much weight in the IP index as non 1957-58, and it lasted longer. This fact reflected durable materials—showed no upturn until in part the more general and more marked mid-1975, and by May 1976 it had regained curtailments in demand and activity in foreign only about two-thirds of its recession decline. industrial countries in 1974-75 than in 1957-58. This slower recovery can be attributed in part On the other hand, output of consumer goods, to the lagged upturn in output of business which was reduced twice as much as it had been equipment and in construction activity. CHART 5 Industrial production by major market groups Materials Products S=major steel strikes Consumer goods Business equipment Seasonally adjusted data; latest are May 1976 estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production—1976 Revision All it is of more interest than usual to compare these COMPARISONS two series over a longer period, noting dif WITH RELATED DATA ferences in growth as well as in cyclical fluctu The basis for further analysis of current and ation. Such a comparison is made in Chart 6, longer-run economic developments using IP is where the ratio of IP to GNP is shown quarterly provided by the series in Chart 2 on use of since 1946. This chart also presents a similar industrial resources—energy and labor—and on comparison of IP with GNP data for nonfarm plant capacity, stocks of materials, labor pro goods output since 1963. ductivity, and unit labor costs. These related According to the revised figures for both IP data can be viewed in part as showing the and GNP, the ratio of IP to GNP has risen over interrelationships of the goods portion of the the past three decades at about 1 per cent a year economy. For such analysis, it is necessary to on the average. Also, as the ratio shows, IP use many series, and on some occasions prob has fluctuated more cyclically than GNP. Such lems of interpretation arise when measures usu ally expected to move together do not. This may in early 1976 were reported as showing somewhat less be caused by differences in areas represented, increase than the previously published series from 1963 to 1974. This fact apparently reflected in part the change types of data used, or statistical conventions from a 1958 to a 1972 valuation period for the time adopted to handle the data. span covered. In contrast, IP uses different initial-year One major difference appears in 1974 when valuation data for different time periods and then “links” the separately weighted indexes. The increase total IP was maintained at advanced levels in total GNP for 1963-74 was at a 3.5 per cent annual through the third quarter, while total gross na average compounded rate, according to Part 1 of the tional product (GNP) in constant dollars, as Survey of Current Business, January 1976, Table 13, p. 25. This rate was about the same as the rate implied recently revised, was declining.7 Consequently, from 1948 to 1963. A least-squares comparison of total GNP, which includes years other than the terminal 7 The GNP data are compiled by the Bureau of Eco years, also showed little difference between the two time nomic Analysis of the U.S. Department of Commerce. periods. Terminal-year compounded annual rates for IP It may be noted that the revised constant-dollar series are 4.8 per cent from 1963 to 1974 and 4.2 per cent for total GNP and for goods output that were published from 1948 to 1963. CHART 6 Total IP/GNP 100 Seasonally adjusted quarterly averages of total IP converted to 1963 base. Constant-dollar GNP data are reported by BE A and converted to 1963 base by F.R. Latest data, 1976 Ql. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
478 Federal Reserve Bulletin □ June 1976 differences in behavior clearly need to be taken been broadly similar to those preceding and into account in current comparisons. accompanying earlier major postwar recessions. Cyclical fluctuations in IP are greater than in They are shown more clearly by comparing the GNP primarily because IP measures production quarterly ratios with a trend line drawn through in a volatile sector of the economy. The GNP the postwar cyclical highs during the half-dozen includes, in addition, farm output, structures, earlier periods. The indicated increase in the distribution activities, and all types of services, ratio of about 1 per cent a year is somewhat private and public. higher than that shown by the old data. The accelerated expansion after 1963 in pro While curtailments in production of equip duction of business equipment, construction ment, which is more heavily weighted in IP than products, and equipment parts, and of other in GNP, were smaller during the latest downturn materials included in inventory investment—for than in earlier postwar recessions, decreases both domestic use and export—has already been were larger in output of consumer goods and noted (Table 1). Output of durable consumer construction products, which are also relatively goods also grew faster after 1963. The expan more important in IP. Furthermore, liquidation sion in all of these goods, which together repre of inventories was much greater than in earlier sent a larger portion of IP than of GNP, came recessions, and it is believed that these changes in wave-like movements that caused total IP and are usually more fully reflected in the direct the IP/GNP ratio to crest at successively higher production measures than in the constant-dollar levels in 1966, 1969, and 1974. derivations supplied by the available book-value Another reason why IP rose considerably inventory data. more than GNP during the 1972-74 expansion The constant-dollar GNP data for nonfarm period was the especially heavy accumulation goods output usually show more cyclical fluc of inventories of many types of industrial mate tuation and more growth than the rest of GNP, rials and products, which affected IP more than which includes services, structures, and farm GNP. From the reduced level reached during output—and in that sense they are more like the previous readjustment—in the third quarter IP. The ratio of IP to this GNP component has of 1971—the IP/GNP ratio rose about one-tenth generally shown less increase and a more stable to the third quarter of 1974. Then came reduced relationship than the ratio of IP to total GNP final demands for goods and cutbacks in inven (Chart 6). The remaining variations in move tories, and as a result the ratio of IP to GNP ments between the two series are a result of dropped by about that amount within a two- differences in scope (freight transportation and quarter period. Later, with economic recovery other distribution activities are included in the under way, the ratio rose moderately in the GNP series but not in IP) and in the basic following period.8 statistical data and their handling.9 These recent changes in relationship have Further analyses will be presented in the 1976 Edition where developments affecting consumer 8 It has been suggested that buyers probably shifted goods, capital goods, and inventories are con their purchases toward less expensive goods during the sidered separately. □ period of price increases in 1974 and that this may have been reflected in GNP but not in IP, accounting for part of the change in relative levels from 1973 to 1974. To the extent that IP is based on a count of the number 9 Over the years IP rises more than it would if general of units, a shift to cheaper products would not be price indexes for industrial goods rather than unit-value reflected in the index since the last annual level ad data drawn from detailed Census materials and other justment was for 1973. In the case of autos, the revised sources were used in calculating benchmark adjustments IP index is designed to measure any shifts in output and, indirectly, some adjustment factors used currently. between large and small cars. Shifts in purchases cannot The smaller price increases implied by the unit values account for the narrowing of the difference between the suggest that actual price rises for industrial goods may two measures in the first half of 1975 when prices rose not have been so large as those shown by the available further and increases in incomes slowed. general price measures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production—1976 Revision 479 Revised Indexes of Industrial Production—Total and market groupings Seasonally adjusted, 1967 = 100 Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Ql Q2 Q3 Q4 Annual Average TOTAL INDEX 1963........ 73.8 74.5 75.0 75.7 76.6 76.9 76.6 76.7 77.5 78.1 78.4 78.3 74.4 76.4 77.0 78.2 76.5 1964........ 79.0 79.5 79.5 80.8 81.3 81.5 82.1 82.5 82.8 81.7 84.3 85.2 79.3 81.2 82.5 83.7 81.7 1965........ 86.2 86.7 87.8 88.2 88.9 89.5 90.4 90.9 91.0 92.0 92.3 93.5 86.9 88.9 90.8 92.6 89.8 1966........ 94.4 95.0 96.3 96.5 97.4 97.9 98.4 98.5 99.4 100.0 99.4 99.6 95.2 97.3 98.8 99.7 97.7 1967........ 99.8 99.0 98.5 99.2 98.7 98.4 98.7 100.0 100.3 101.2 102.6 103.5 99.1 98.8 99.7 102.4 100.0 1968........ 103.7 104.3 104.7 104.9 106.2 106.6 106.5 107.1 107.1 107.4 108.6 108.8 104.2 105.9 106.9 108.3 106.3 1969........ 109.5 110.2 110.1 110.6 110.3 111.2 111.8 112.3 112.3 112.5 111.4 111 .2 110.2 110.7 112.1 111 .7 111.1 1970........ 109.1 108.8 108.8 108.6 108.3 108.1 108.4 108.3 107.6 105.4 104.8 107.2 108.9 108.3 108.1 105.8 107.8 1971........ 108.1 108.0 108.0 108.5 109.1 109.6 109.8 108.9 110.3 110.9 111.3 112.3 108.0 109.1 109.7 111.5 109.6 1972........ 114.6 115.3 116.5 117.7 118.1 118.7 119.3 120.7 121 .8 123.4 124.4 125.8 115.0 118.2 120.6 124.5 119.7 1973........ 126.3 127.8 128.5 128.5 129.6 129.9 130.4 130.4 131.1 131 .4 131.6 131 .3 127.5 129.3 130.6 131.4 129.8 1974........ 129.9 129.6 130.0 129.9 131 .3 131 .9 131 .8 131 .7 131.8 129.5 124.9 119.3 129.8 131 .0 131 .8 124.6 129.3 1975 115.2 112.7 111 .7 112.6 113.7 116.4 118.4 121 .0 122.1 122.2 123.5 124.4 113.2 114.2 120.5 123.4 117.8 CONSUMER GOODS 1963........ 79.2 80.1 80.4 80.7 80.9 81 .4 81 .2 81 .8 82.0 82.6 82.7 83.1 79.9 81.0 81.7 82.8 81.3 1964........ 84.0 83.8 83.4 85.5 86.2 86.0 87.2 87.0 86.1 84.4 87.5 89.3 83.7 85.9 86.8 87.1 85.8 1965 ........ 90.6 90.9 91.7 91.5 92.0 92.3 92.3 92.2 93.6 94.1 94.6 95.1 91 .1 91.9 92.7 94.6 92.6 1966 95.6 95.8 96.6 96.9 96.9 97.3 97.1 96.8 97.2 99.2 98.7 98.5 96.0 97.0 97.1 98.8 97.3 1967 99.0 98.4 98.8 99.3 99.0 98.8 98.6 99.7 100.0 101.5 103.1 104.0 98.7 99.0 99.4 102.9 100.0 1968 103.3 104.1 104.3 104.5 105.2 105.7 105.5 106.8 107.1 107.8 108.9 108.3 103.9 105.1 106.5 108.3 105.9 1969. .. 108.9 109.8 110.0 109.1 108.2 109.3 110.9 111.3 110.5 110.6 109.4 109.5 109.6 108.9 110.9 109.8 109.8 1970 108.0 108.8 109.1 109.6 110.1 110.3 110.5 109.2 108.4 106.9 106.3 110.5 108.6 110.0 109.4 107.9 109.0 1971 112.2 112.1 112.3 113.0 113.2 113.9 115.5 115.1 115.8 117.0 117.9 118.8 112.2 113.4 115.5 117.9 114.7 1972 119.8 120.6 121 .5 122.5 123.0 123.2 124.0 125.5 126.2 127.5 128.4 130.4 120.6 122.9 125.2 128.8 124.4 1973 129.5 130.5 131.4 131 .2 132.1 131.2 131.4 130.2 132.9 133.1 132.4 130.5 130.5 131 .5 131.5 132.0 131.5 1974 128.3 127.8 128.4 129.6 130.3 131.2 131.2 132.2 131.1 129.7 126.2 121 .0 128.2 130.4 131.5 125.6 128.9 1975 117.0 116.1 117.0 119.0 120.4 124.3 126.6 127.5 129.0 128.7 131 .1 132.3 116.7 121.2 127.7 130.7 124.0 BUSINESS EQUIPMENT 1963 63.4 64.3 64.0 64.5 64.3 64.6 65.6 67.1 66.9 68.1 68.6 68.5 63.9 64.5 66.5 68.4 65.8 1964 70.3 69.9 70.8 72.4 73.2 73.5 74.5 74.4 75.1 74.5 77.0 78.3 70.3 73.1 74.7 76.6 73.7 1965 78.2 79.6 80.6 81.3 82.5 83.7 85.2 85.1 86.8 88.0 89.7 91.6 79.4 82.5 85.7 89.8 84.4 1966 93.5 93.2 95.0 95.8 97.0 97.9 99.5 99.9 101.0 100.7 99.2 100.6 93.9 96.9 100.1 100.2 97.8 1967 100.3 100.4 100.0 100.5 100.4 99.8 97.5 99.4 99.3 98.4 101.5 102.4 100.2 100.2 98.7 100.8 100.0 1968 103.2 103.5 104.5 104.1 105.7 105.4 104.0 105.8 106.3 107.5 107.7 108.1 103.7 105.1 105.4 107.8 105.5 1969........ 109.9 109.5 111.1 112.3 111 .7 112.8 113.9 113.9 114.5 115.0 112.2 112.2 110.2 112.3 114.1 113.1 112.5 1970 109.8 109,9 109.7 109.4 108.8 108.1 108.1 107.2 105.3 102.2 102.0 104.0 109.8 108.8 106.9 102.7 107.0 1971 101.9 103.0 102.3 102.1 101.5 102.3 103.8 104.1 105.9 106.7 106.9 108.2 102.4 102.0 104.6 107.3 104.1 1972 110.1 111 .7 114.0 115.1 116.2 117.3 116.6 119.2 120.8 123.2 125.1 126.2 111.9 116.2 118.9 124.8 118.0 1973 128.2 130.3 130.1 131.7 133.1 134.3 134.7 135.8 136.7 137.7 137.8 138.6 129.5 133.0 135.7 138.0 134.2 1974 137.7 139.2 140.3 141.3 143.6 143.8 145.2 144.4 146.5 144.4 143.0 138.7 139.1 142.9 145.4 142.0 142.4 1975 130.8 128.0 125.7 125.6 126.0 126.6 127.3 129.9 129.2 128.8 129.6 131.6 128.2 126.1 128.8 130.0 128.2 MATERIALS 1963 72.9 74.1 75.1 75.7 77.6 77.8 77.1 76.4 77.9 78.4 78.8 78.3 74.0 77.1 77.1 78.5 76.7 1964 79.0 80.3 80.3 81 .2 81.8 82.3 82.5 84.2 85.5 83.9 86.5 87.6 79.9 81.8 84.1 86.0 82.9 1965 88.6 88.9 90.3 91.2 91.6 92.7 93.5 94.4 93.6 94.6 94.2 95.4 89.3 91.8 93.8 94.7 92.4 1966 96.7 97.7 99.5 99.3 100.4 101.1 101.3 102.1 103.1 103.5 102.0 102.0 98.0 100.3 102.1 102.5 100.7 1967, 101.1 99.5 98.1 99.1 98.1 98.0 98.6 100.0 100.1 101.2 102.4 103.6 99.6 98.4 99.6 102.4 100.0 1968 . .. 103.8 104.1 104.6 105.4 107.0 107.4 107.4 106.9 107.0 107.2 108.8 109.1 104.2 106.6 107.1 108.4 106.5 1969 109.7 110.8 111 .4 111.4 111.2 112.7 112.9 114.0 114.3 114.3 113.8 113.3 110.6 111.8 113.7 113.8 112.5 1970 110.8 110.4 110.2 109.4 109.0 108.6 109.3 110.4 110.1 107.1 106.4 108.7 110.5 109.0 109.9 107.4 109.2 1971 110.4 110.0 110.4 110.8 112.3 112.8 110.5 109.2 111 .4 111.5 111.8 113.4 110.3 112.0 110.4 112.2 111.3 1972 116.5 117.1 118.4 120.2 120.6 121.3 112.1 123.4 124.8 126.6 127.7 128.9 117.3 120.7 123.4 127.7 122.3 1973 129.9 131.7 132.3 132.4 133.5 134.3 135.1 135.8 135.4 135.2 136.0 136.0 131.3 133.4 135.4 135.7 133.9 1974 134.9' 134.4 134.5 132.9 135.2 135.7 135.4 134.8 135.4 132.4 125.2 118.0 134.6 134.6 135.2 125.2 132.4 1975 113.7 110.1 108.3 108.8 109.8 112.6 114.5 119.0 121.0 122.0 123.1 123.3 110.7 110.4 118.2 122.8 115.5 Note.—Major market groups for intermediate products and defense and space equipment are not shown separately. Figures for total manufacturing, durable manufacturing, nondurable manufacturing, and mining and utilities are available on request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
481 Federal Reserve Operations in Payment Mechanisms: A Summary Since its origin in 1913, the Federal Reserve change charges were levied by the bank that System has been an active participant in the finally paid the check,1 and since the checks Nation’s payments mechanisms. At present the were not paid in full, the practice was termed System is operationally involved in check pro “nonpar banking.” The exchange charge was cessing, distribution of currency and coin, wire generally xk of 1 per cent of the face value of transfer of reserve account balances, wire the checks paid, and many banks engaged in transfer of Federal Government securities, and circuitous routing of checks to avoid such clearing payments exchanged on magnetic tape. exchange charges. Hence, exchange charges The System also performs an operating function resulted in a slow, cumbersome, and costly as the fiscal agent of the U.S. Government and check collection system and were considered an of several Government agencies and handles impediment to commerce and economic growth. certain financial transactions on behalf of The Federal Reserve Act changed these rela foreign central banks and governments. tionships because member banks were required Recently, the Board of Governors was asked to pay for checks presented to them by Reserve to provide a summary of the System’s opera Banks at par and the Reserve Banks were au tional role in such payments mechanisms. The thorized to exercise the functions of a clearing history, present scope of operations, and legal house for member banks. authority are outlined in this article for each In July 1916 the Board of Governors required major area of the System’s involvement in each all Federal Reserve Banks to function as clear payments mechanism. This review does not inghouses for member banks. Reserve Banks present an exhaustive treatment of these activi would receive checks from members that were ties, nor does it examine other Federal Reserve drawn on a member or nonmember bank collection activities—notably, the collection of agreeing to pay at par for items presented by so-called noncash items, such as bonds and the Federal Reserve. After that, nonpar clearance coupons of corporations and municipalities. was eliminated in many sections of the country In addition, this summary describes two of and in the major money centers. However, it the Board’s regulatory actions permitting mem has continued in certain States in the South; as ber banks to transfer funds from savings ac of June 1, 1976, there were still 64 nonpar counts to third parties. Although these types of transfers are not processed by the Federal Re serve, they are of importance in obtaining a Note.—This article was prepared by the staff of the better understanding of current fund transfer Board of Governors for presentation to the National systems. Commission on Electronic Fund Transfers. 1 “Exchange charges” should be distinguished from “collection charges.” Collection charges are levied on the payee by the payee’s bank for collecting the check. CHECK COLLECTION Exchange charges are exacted by the bank on which the check is drawn (the “drawee bank”). Exchange charges developed because funds, except when paid History and Statutory over the counter, were transferred by remitting a draft B asis for Participation on the drawee bank’s correspondent in the city in which the presenting bank was located. For the service ren Prior to the enactment of the Federal Reserve dered by the drawee bank in remitting funds available for use in the city in which the payee’s bank was Act, checks were exchanged through a system located, a small exchange charge was made and de of clearinghouses (or exchanges). Often ex ducted from the amount of the remittance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
482 Federal Reserve Bulletin □ June 1976 banks, operating chiefly in Louisiana, South 3. The fourteenth paragraph of Section 16(12 Carolina, and Texas. U.S.C. 248(o)) that provides in part: The general provisions of law under which The Board of Governors of the Federal Re the Federal Reserve Banks exercise check col serve System shall make and promulgate lection functions are as follows:2 from time to time regulations governing the transfer of funds and charges therefor among Federal reserve banks and their branches, 1. The first paragraph of Section 13 of the and may at its discretion exercise the func Federal Reserve Act (12 U.S.C. 342) that pro tions of a clearing house for such Federal vides in part: reserve banks, or may designate a Federal reserve bank to exercise such functions, and may also require each such bank to exercise Any Federal reserve bank may receive from the functions of a clearing house for its any of its member banks, and from the member banks. United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable In nontechnical language, these provisions upon presentation, and also, for collection, have been interpreted to mean that a Federal maturing notes and bills; or, solely for pur Reserve Bank: poses of exchange or of collection, may receive from other Federal reserve banks 1. Must receive deposits at par—that is, must deposits of current funds in lawful money, national-bank notes, or checks upon other accept deposits for the full face value—and the Federal reserve banks, and checks and deposits may be in the form of checks drawn drafts, payable upon presentation within its on member or nonmember clearing banks if sent district, and maturing notes and bills payable within its district; or, solely for the purposes to it by its member banks or other Reserve of exchange or of collection, may receive Banks or by a member bank in another district from any nonmember bank or trust company if permitted by the Reserve Bank of that district; deposits of current funds in lawful money, national-bank notes, Federal reserve notes, 2. May receive from member banks checks checks and drafts payable upon presentation, payable at par upon presentation anywhere in or maturing notes and bills; Provided, Such the country, whether drawn upon member or nonmember bank or trust company main tains with the Federal reserve bank of its nonmember banks; district a balance sufficient to offset the items 3. May, solely for purposes of exchange or in transit held for its account by the Federal collection, receive from other Reserve Banks reserve bank: . . . . checks payable at par upon presentation within 2. The thirteenth paragraph of Section 16 of the receiving Bank’s district; and the Act (12 U.S.C. 360) that provides: 4. May, solely for purposes of exchange or collection, receive from any nonmember bank Every Federal reserve bank shall receive on deposit at par from member banks or from in its district checks payable at par upon pre Federal reserve banks checks and drafts sentation at any bank in the country, provided drawn upon any of its depositors, and when such nonmember bank maintains a clearing bal remitted by a Federal reserve bank, checks and drafts drawn by any depositor in any ance with such Reserve Bank.3 other Federal reserve bank or member bank upon funds to the credit of said depositor Pursuant to Sections 11, 13, and 16, the in said reserve bank or member bank. Board has promulgated Regulation J (12 CFR Part 210) designed to afford the public and the 2Other important sections of the Act, insofar as 3 The right of the Reserve Bank to present checks payment mechanism services, are Section 4 (12 U.S.C. to nonmember banks was acknowledged in American 341), which permits Reserve Banks to carry on the Bank and Trust Co. v. Federal Reserve Bank, 262 U.S. business of banking, Section 11 (12 U.S.C. 248(i)), 643. The Federal Reserve does not have the authority, which authorizes the Board to establish regulations to however, to require nonpar banks to pay at par. See enable the Board to accomplish the functions detailed Farmers Bank v. Federal Reserve Bank, 262 U.S. 649. in the Act, and Section 19(f) (12 U.S.C. 464), which Therefore, checks drawn on nonpar banks cannot enter permits members to check against and withdraw funds the Federal Reserve clearing system but must be sent from reserve accounts maintained at Federal Reserve directly to the bank on which drawn or presented by Banks, subject to regulations of the Board of Governors. a correspondent bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
F.R. Operations in Payment Mechanisms 483 banks of the country a direct, expeditious, and creased significantly the speed and efficiency economical system for the collection of checks. with which checks were cleared. During the Regulation J details the rights and liabilities of early 1970’s the Federal Reserve implemented parties using Federal Reserve collection facili the Regional Check Processing Center (RCPC) ties and permits the Reserve Banks to adopt program aimed at increasing the number of “operating circulars” that detail, in part, the checks cleared on an overnight basis through time limits and procedures established by the Federal Reserve facilities. Continued growth in Reserve Bank for collecting checks as well as the number of checks led to experimentation other operating matters. Regulations and with use of encoding payment information on operating circulars have been issued by the magnetic tape. (Developments in handling Federal Reserve since 1914. The operating cir magnetic tapes are summarized later.) culars are viewed as contracts between the Fed eral Reserve and the banks and, as specifically Present Scope of Operations provided in Section 4-103 of the Uniform Com mercial Code, the Federal Reserve operating By way of background to the entire check pay circulars constitute agreements that can vary the ment system, several relationships and costs effect of the provisions of the Code. should be considered. For example, it can be Section 210.4 of Regulation J authorizes any assumed that the bank receiving a deposit in “sender,” that is, a member or nonmember the form of a check will move expeditiously clearing bank in the district, to send to the to obtain possession of the funds from the bank Reserve Bank of the district checks payable at on which the check is drawn. Checks for large par in any Federal Reserve district. This au amounts are often segregated and subject to thorization to senders in effect means that Re expedited handling, and bank messengers may serve Banks are required to receive such items make over-the-counter presentment to the in accordance with the provisions of the regula drawee for immediate credit in order that the tion. Hence, the Reserve Banks do not refuse proceeds of the check may be immediately a sender’s items, and the permissive statutory available. Other items may be sent directly to authority described above has been made an the bank on which they are drawn, to a clear obligation on the part of Reserve Banks. ing house, to a correspondent, or to the nearest The Federal Reserve Act does not expressly Federal Reserve office. A correspondent may, authorize a Reserve Bank to receive checks in turn, collect certain items and turn others over directly from banks in other districts. Regulation to the Federal Reserve. Even though there are J provides, however, that, as permitted or re a variety of alternative collection arrangements quired by a Reserve Bank, a member bank in available, after “on us”4 and local clearing one district may send checks directly to the items are removed, most of the checks cleared Reserve Bank of any other Federal Reserve in the Nation enter directly or indirectly into district in which the checks are payable. This the Federal Reserve clearing system. rule provides an efficient mechanism to handle Check collection involves processing and interdistrict sendings and avoids processing (and transportation costs. The bank of first deposit the attendant delay) by an intermediate Reserve must ready the check for subsequent processing Bank. and pay the cost of delivering it to the bank During the late 1950’s and early 1960’s, the on which it is drawn or to a clearing agent—the banking industry and the Federal Reserve Federal Reserve, a clearinghouse, or a corre moved toward automation in handling the mounting volume of paper checks being pro cessed. The initial step permitted the check to 4 Items that the payee deposits at the drawee bank be machine processed by adding the MICR are termed “on us” items, and often a predominant (Magnetic Ink Character Recognition) numbers portion of the total number of checks deposited are of this character, especially in areas in which there are at the bottom of the check. The use of computers large branching systems or concentrations in demand and high-speed check handling equipment in deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
484 Federal Reserve Bulletin □ June 1976 spondent. Thereafter the clearing agent, if there reflects the time that the Federal Reserve nor is one, has the responsibility for delivery and mally takes to receive payment from the bank presentation of items to the bank on which the on which the check is drawn. Under current items are drawn. The transportation costs asso schedules, credit for checks deposited at a Fed ciated with that delivery may be substantial. eral Reserve office may be given on the day Clearinghouses (and check processors permit of deposit, the following day, or the second ting “in house” banks to exchange checks) following day even if the actual time necessary incur nominal delivery costs, but delivery by to present the check extends beyond the day other clearing agents involves substantial con credit is made available to the bank depositing tractual costs for surface and air courier delivery the checks. If the item is not collected until after under prevailing operations. Correspondents re the credit is passed, Federal Reserve float is coup costs they bear by fees charged or by generated. Currently, Federal Reserve float earnings on collected funds in correspondent averages about $2.0 billion. Since the extension balances. of Federal Reserve credit through float has a A final but vital aspect of check clearing is random effect on the availability of reserves, it the actual movement of funds. The check serves hampers the measurement of the money supply. as documentation for crediting and debiting in Thus, Federal Reserve System operations are dividual accounts in banks. The matrix of total geared to holding float at the lowest possible credits and debits arising from individual items level. processed at particular times provides the basis To accomplish the rapid delivery of checks for net settlement among all pairs of banks. among Federal Reserve offices (about 40 per Generally, settlement takes the form of charges cent of the volume is deposited outside the zone and credits to reserve accounts maintained by in which the item is payable), the System uti member banks at the Federal Reserve, at present lizes an air charter service, commercial airlines, amounting to about $35 billion. However, set and other air courier services. In-zone trans tlements are also made through correspondent portation of checks from Federal Reserve offices balances. to financial institutions on which checks are As to the specific Federal Reserve operations, drawn is accomplished at Federal Reserve ex the Federal Reserve presently maintains 46 pense by contract courier services and the U.S. check-clearing operations with two more to be Postal Service. For all intraterritorial items, come operational during 1976. The Federal Re however, institutions that deposit items with the serve clears checks and check-like instruments5 Federal Reserve pay for the courier cost of that have been deposited with member banks6 delivering such items to the Federal Reserve. and forwarded to the Federal Reserve for col The Federal Reserve introduces checks re lection. The Federal Reserve ultimately presents ceived from the Federal Government into this these items for payment either directly to the clearing system. With this exception, the Fed financial institution upon which the items are eral Reserve’s entire clearing function is deter drawn—member or nonmember—or to a pro mined by the volume of items delivered by cessing center designated by that institution. member banks and to a limited degree by non The Federal Reserve credits the depositing members. Thus, in its clearing operations the bank with funds in accordance with the Reserve Federal Reserve’s role is one of reacting to Bank’s “availability schedule.” This schedule flows generated by commercial banks. If the U.S. banking system were concentrated and more like those of the European countries, there 5Among the check-like documents handled by the would undoubtedly be a less significant clearing System are the “NOW account” drafts for thrift and role for the Federal Reserve because of the high commercial bank institutions, the “share-drafts” for credit unions, and the payable-through draft used by proportion of “on us” and direct exchange corporations. items. 6 In RCPC zones nonmember banks—as agents for The volume of items cleared through the member banks—may forward to the Federal Reserve all items payable in the zone. Federal Reserve’s check collection system has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
F.R. Operations in Payment Mechanisms 485 grown substantially as shown below (in mil sentially parallel check-clearing operations ex lions): cept that the payment information is exchanged on magnetic tape as opposed to paper checks. Year Volume Year Volume In an ACH operation, financial institutions create computer tapes of debit and credit items 1920 504 1950 1,955 based upon customer instructions and deliver the 1930 904 1960 3,419 1940 1,057 1970 7,158 tapes to their local Federal Reserve clearing and 1975 11,410 settlement facility, just as those institutions would deliver checks to the Federal Reserve’s check-clearing and settlement facility. A Fed eral Reserve computer—which is also used for AUTOMATED CLEARINGHOUSES other operational purposes—reads, edits, and balances the information on the tape, sorts ac History and Statutory cording to the receiving financial organization, B asis for Participation and makes the debit and credit entries in mem The automated clearinghouse (ACH) concept ber bank reserve accounts for settlement for both was designed in response to the growing volume the originating and the receiving financial orga and increased cost of processing paper checks. nization. When the processing has been com In 1968 a group of commercial bankers in pleted, the computer creates output media con California formed the Special Committee on sisting of magnetic tapes or descriptive paper Paperless Entries (SCOPE) to study the feasi listings. The Federal Reserve sends the output bility of exchanging payments on magnetic tape. media to the receiving financial organization This system was to augment the check system using the same delivery system as that used for by providing a more convenient and less costly delivering checks. alternative to the use of checks. As a result of The Federal Reserve is not the sole processor this study, more than 100 banks in California of automated payments. As noted previously, formed an ACH association, and the Federal paper checks are cleared through private clear Reserve Bank of San Francisco was requested ing arrangements apart from the Federal Reserve and agreed to provide the clearing and settle facilities, and it should be expected that private ment facilities for the exchange of such pay facilities will handle certain automated pay ments on magnetic tape. Subsequently, other ments. Reserve Banks were requested to utilize existing At the present time, the Federal Reserve will facilities to process the magnetic tapes for other receive items on tapes from any member bank ACH associations. Currently, the Federal Re and any member of an ACH association. The serve provides the clearing and settlement facil Federal Reserve will deliver such items to ities for such operations in 19 offices, and 5 member banks and members of ACH associa more offices are expected to begin operations tions under the following guidelines: in 1976. The statutory basis for System in volvement is the same as that for checks. 1. Items may be delivered directly to institu tions offering demand deposit accounts in the same manner that checks are presented. Present Scope of Operations 2. Items may be delivered directly to institu ACH operations are designed to handle repeti tions not offering demand deposit accounts pro tive funds transfers of small dollar amounts, vided such institution receives a sufficient vol such as salaries and wages and mortgage and ume of such items to warrant separate delivery insurance premium payments. The Federal Re and is located on an existing check-courier serve uses its existing computer and courier route. facilities to clear and deliver such items. 3. Items may be delivered to a data process Automated clearinghouse operations and the ing service bureau provided the service bureau Federal Reserve’s role in such operations es receives a sufficient volume of such items to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
486 Federal Reserve Bulletin □ June 1976 warrant separate delivery and is located on an the U.S. Treasury, the Commodity Credit Cor existing check-courier route. poration, and the Reconstruction Finance Cor 4. Items may be picked up at the local Fed poration. eral Reserve office provided that the volume is In 1970 the first components of the present sufficient to warrant such action. automated network were installed, and the sys 5. Items may be delivered to an endpoint that tem was fully automated in late 1973. Each of currently receives checks directly from the Fed the district offices now have installed communi eral Reserve office and the institutions may cations switches to which Reserve Banks, arrange for delivery from that endpoint (that is, branches, offices, the Treasury, and a number the pass-through method). of member banks are interconnected nationwide 6. Items may be mailed by the Federal Re through a central switch facility in Culpeper, serve to any financial organization regardless of Virginia. This system allows for virtually in its location. stantaneous movement of funds among member banks of the System and aids banks in the The volume of payments processed in this efficient handling of reserve balances. In view manner is quite small at present, compared with of the need for a quick and efficient method of the volume of checks processed. The 19 opera handling funds transfers of very large amounts tional Federal Reserve offices cleared and settled in the Nation’s money markets, the Board re for approximately 270,000 such automated gards wire operations as a necessary and vital payments in May 1976. tool in conducting its monetary affairs. During 1975, 17.4 million funds transfers, valued at $31.4 trillion, were handled on the FEDERAL RESERVE network, as well as 1.5 million Government and Government agency securities transfers and 1.0 WIRE NETWORK million administrative messages. The System’s network is designed to handle the very large History and Statutory transfers and to discourage small transfers; a B asis for Participation $1.50 charge is imposed for transfers of less From the first days of the Federal Reserve, there than $1,000, and large transfers are handled was a need for rapid movement of both financial without charge to members. and administrative messages among Federal The statutory basis for the System’s involve Reserve offices. Initially, communication was ment in transferring member banks’ reserve through Western Union and Postal Telegraph balances is basically the same as its involvement facilities. In 1918 the Federal Reserve, in rec in the check-clearing mechanism that has been ognition of the need for more rapid and secure discussed previously. In addition, paragraph 14 communication facilities, installed a private of Section 16 of the Federal Reserve Act au Morse code system. This method of transfer thorizes the Board to regulate the transfers of continued until 1937 when it was converted into funds among Reserve Banks, and Section 13 a teletype system. In 1940, in response to a authorizes Reserve Banks to receive deposits growing volume of traffic, the Board of Gover from their members. nors and the Federal Reserve Bank of Chicago Present Scope of Operations were designated as primary relay stations. The relay station, or “switch,” concept was also Three types of messages are handled on the incorporated when an automatic message system network: (1) transfers of reserve account bal using advanced teletype machines was installed ances (almost exclusively in large dollar in 1953 with the Richmond Bank designated as amounts) from one member bank to another, the switching center. This system handled 6,000 (2) transfers of U.S. Government and Federal messages per day initially and linked Reserve agency securities, and (3) administrative and Banks and branches, the Board of Governors, research information. The transfer of reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
F.R. Operations in Payment Mechanisms 487 balances is used by member banks of the Federal Federal Reserve Banks the duties and functions Reserve System to transfer (1) funds as a result of the Assistant Treasurers in connection with of purchasing and selling Federal funds, (2) the exchange of paper currency and coin of the correspondent bank balances, and (3) funds to United States (41 Stat. 654). Pursuant to this other members on behalf of customers. authority, Reserve Banks have been authorized Transfers to other members made by member and directed by the Treasury to make an equita banks on behalf of their customers include (1) ble and impartial distribution of available sup the purchasing and selling of commercial paper, plies of currency and coin in all cases directly bonds, and other securities, and (2) replenishing to member banks and to nonmember commer corporate demand deposits. For the latter, the cial banks (see 31 CFR 100). Federal Reserve is involved only in crediting and debiting the banks involved in the transfer, and the System does not collect and/or store Present Scope of Operations information related to the corporation that orig The volume of currency and coin distribution inates or receives the funds transferred. operations, in millions of pieces, has grown All money transfers of reserve balances are substantially as shown below: credit transfers—that is, a member bank in Year Currency Coin structs the Federal Reserve to transfer funds to another member bank. If the members maintain 1925 1,947 2,329 balances at the same Federal Reserve Bank, 1935 2,148 2,590 1945 3,016 4,562 each reserve balance is debited and credited 1955 4,282 7,008 1965 5,144 5,855 accordingly. If the institutions do not maintain 1975 6,551 13,611 balances at the same Federal Reserve Bank, the There are 37 Federal Reserve offices that first Federal Reserve Bank debits the reserve process currency and coin. During 1975, 6.5 account of the sending bank and credits the billion pieces of currency and 13.6 billion pieces account of the Federal Reserve Bank in whose of coin were received and counted. In addition district the receiving bank is located. The latter 2.6 billion pieces of currency were retired from Federal Reserve Bank debits the account of the circulation and destroyed. Fourteen Federal Re sending Federal Reserve Bank and credits the serve offices provide coin wrapping services. account of the receiving bank. Reserve Banks Almost one-half of the cost of currency and coin settle by use of the Interdistrict Settlement Fund. operations is for transportation by armored truck Nonmember banks, other financial institutions, of the money requirements of the more than businesses, and consumers may request a mem 18,000 banking offices serviced directly by the ber bank to send funds through the Reserve Federal Reserve. System. FISCAL AGENT CURRENCY AND COIN History and Statutory B asis for Participation History and Statutory Section 15 of the Federal Reserve Act states B asis for Participation that Federal Reserve Banks, when required by Section 16 of the Federal Reserve Act authorizes the Secretary of the Treasury, “shall act as the issuance and redemption of Federal Reserve fiscal agents of the United States; and the reve notes. The Federal Reserve Banks have issued nues of the Government . . . may be deposited and redeemed such notes since 1914. in such banks, and disbursements may be made On May 29, 1920, the Congress authorized by checks drawn against such deposits.” The the Secretary of the Treasury to transfer to the Federal Reserve has also been designated as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
488 Federal Reserve Bulletin □ June 1976 depository and fiscal agent for several interna under the Treasury’s Direct Deposit of Federal tional agencies (such as the Inter-American De Recurring Payments Program. This program velopment Bank) in various other sections of will expand nationwide by the end of 1976 with the U.S. Code. all Federal Reserve offices distributing an esti mated 7.5 million payments monthly. Present Scope of Operations 2. TREASURY TAX ACCOUNTS. Pay Federal Reserve Banks act as the Government’s ments of Federal taxes (income, Federal Insur principal fiscal agents. Among the activities ance Contributions Act, and so on) made by performed, the Banks maintain banking ac corporations and some individuals are received counts for the Treasury, handle Government from commercial banks, processed, and credited checks, receive applications from the public for to the account of the Treasury. About 45 million the purchase of securities being sold by the U.S. tax payment forms were processed in 1975. Treasury, allot the securities among bidders, deliver securities, collect payment from the 3. GOVERNMENT CHECKS. Government buyers, register and redeem securities, make checks are received from banks for charge to wire transfers of securities to other cities, make the Treasurer’s account. This activity, which is denominational exchanges of securities, pay in essentially a check-collection function, pro terest on coupons, and conduct transactions in cessed more than 800 million Treasury check the market for various Treasury accounts. Most payments in 1975. of these activities are under the general supervi sion of the Treasury, which reimburses the 4. INTEREST PAYMENT COUPONS. Reserve Banks for most fiscal agency functions. Coupons representing the payment of interest In addition, the Reserve Banks perform fiscal on U.S. Government securities are processed for agency services in connection with the financial the Treasury. Approximately 9 million coupons activities of various Federal or Federally spon were processed in 1975. sored credit agencies, and reimbursement is provided by the Treasury (or other Government 5. U.S. POSTAL SERVICE MONEY agencies) for much of the expense incurred. ORDERS. U.S. Postal Service money orders The fiscal agency functions that relate to the are received from banks for payment. Money payments mechanism are as follows: orders are charged to the Treasurer’s account and shipped to the U.S. Postal Money Order 1. DIRECT DEPOSIT OF FEDERAL RE processing center in St. Louis. This activity CURRING PAYMENTS PROGRAM. Certain processed more than 170 million items in 1975. Federal recurring payments are received on magnetic tape from Government disbursing 6. U.S.D.A. FOOD COUPONS. Food centers, processed, and distributed to financial coupons are received from banks for payment, organizations. counted, and destroyed. This activity processed The same general procedures and the same about 2.5 billion items in 1975. computer systems are used to process electronic data representing U.S. Government payments as are used for commercial payments through the TRANSFERS FROM Federal Reserve’s automated clearing and set SAVINGS ACCOUNTS tlement facilities discussed earlier. Currently, each month approximately 540,000 U.S. Air Bill Payer Services Force payroll payments are processed and de livered to 9,000 financial institutions. In Febru In July 1975, in recognition of a need for more ary 1976 the Federal Reserve Bank of Atlanta convenient banking services, the Board distributed the first social security payments amended Regulation Q to authorize member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
F.R. Operations in Payment Mechanisms 489 banks of the Federal Reserve System to permit the same bank, the transfer will be made on depositors to withdraw funds from savings ac the books of the bank; otherwise, the bank counts pursuant to nontransferable orders or would write a check to the creditor. authorizations. Prior to this change, the deposi 2. The depositor may write individual with tor generally7 had to make requests for with drawal orders to the bank requesting transfers drawal in person, but the bank could permit to be made to parties named in the order. These regular transfers from savings for mortgage orders may be given at irregular intervals and loans and related payments. The Board was in irregular amounts. The bank would transfer requested to permit banks to offer a full range the funds according to the order. The orders are of bill payment services without regard to the nontransferable, and only the depositor may nature of the depositor’s indebtedness. In pro send instructions to the bank. mulgating the changes, the Board relied upon its authority under Section 19 of the Federal Reserve Act (12 U.S.C. 461) to define terms Telephonic Transfers used therein. In April 1975 the Board authorized member The actual transfer from a savings account banks to permit their customers to transfer funds is not handled by the Federal Reserve since that from a savings account based upon the cus transfer is an “on us” transfer. tomer’s telephonic instructions. The Board be The amendment to Regulation Q authorized lieved that it was no longer true that unrestricted member banks to offer bill-paying services but use of the telephone would absolutely destroy did not specify the form for that service. The the distinction between savings and demand following examples may be useful: accounts. In its statement, the Board noted that 1. The depositor will sign a contract with the the telephone was an accepted medium for bank specifying the conditions under which transmitting financial data and that its action withdrawals will be permitted. Such a contract would permit more flexibility in communicating will be the authorization to the bank to honor the customer’s instructions to a bank. In per the depositor’s instructions. The bank may be mitting such withdrawals, the Board relied upon authorized to pay a certain creditor, such as a its authority under 12 U.S.C. 371b to establish utility company, every month upon receipt of rules governing the payment of deposits. information by the bank that funds are due and As with bill payer amendments, the Federal owing. If the creditor maintains a deposit with Reserve is not operationally involved in such transfers. However, it appears that growing 7There were exceptions for creditors, administrators numbers of banks are now offering such a serv of estates, court orders, and so on. See 12 CFR 217.5(c)(i)-(vi). ice to their customers. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
490 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period Febru sometimes heavily to moderate fluctuations in ary through April 1976, is the seventh of a their currencies. The dollar occasionally came series providing information on Treasury and on offer against the German mark, Dutch System foreign exchange operations to supple guilder, and Swiss franc in late January, but ment the regular series of semiannual reports Federal Reserve intervention was limited to that are usually issued each March and Sep modest sales of marks out of existing balances tember. It was prepared by Alan R. Holmes, without renewed recourse to the System’s swap Manager, System Open Market Account, and arrangements with foreign central banks. Executive Vice President of the Federal Reserve By early February intense two-way specula Bank of New York, and Scott E. Pardee, Dep tion had developed within the EC snake ar uty Manager for Foreign Operations of the rangement. With the French franc heavily on System Open Market Account and a Vice Pres offer and the German mark in demand, the two ident of the Federal Reserve Bank of New York. currencies were pushed toward the opposite extremes of the EC band. Strains also developed In early 1976 the dollar was largely shielded within the 1.5 per cent Benelux band, driving from the variety of tensions that developed in the Belgian franc to the bottom and the Dutch markets for other currencies. By that time the guilder to the top. Since the dollar figured latest economic indicators suggested that the heavily in these various dealings—both as a U.S. recovery was regaining momentum and vehicle currency for many market participants was more solidly based than were the more and as an intervention currency for central recent upturns in other industrial countries. banks—it was soon caught up in the crossfire. Moreover, with the United States already With several central banks defending their own having one of the lowest rates of inflation among currencies through dollar sales, the potential for industrial countries, the further moderation in even larger accumulations of dollar balances in the uptrend of prices here bolstered sentiment traders’ positions began to weigh on market toward the dollar. psychology. Dealers, therefore, sought to shift Elsewhere, divergent price and productivity into currencies that they believed would be more performances among European countries had likely to rise in the very near future. In the led many market participants to expect that process, the German mark began to rise more exchange-rate adjustments might again be nec sharply, exerting an upward pull on other Euro essary—both by those within the Economic pean currencies including those still under gen Community (EC) “snake” arrangement and by eralized selling pressure. Consequently, the other European countries whose trade is closely dollar, which by February 2 had already slipped linked to that group. During January concern by 2.5 per cent against the mark from the late over political and economic developments in 1975 highs, declined a further 1.5 per cent by Europe generated speculative pressures in mar February 11. kets for several European currencies. The Italian As speculative pressures mounted, the French lira declined after the Bank of Italy withdrew and German central banks stepped up their in temporarily from the market to conserve its tervention to defend the limits of the snake, not reserves during a prolonged Cabinet crisis. In only in dollars but in each other’s currencies several other markets central banks intervened as well. At the same time, with the New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Foreign Exchange Operations: Interim Report 491 market also becoming unsettled, the Federal over the weekend of March 13-14, the French Reserve intervened on 4 days between February Government announced that it would withdraw 2 and 11. The System sold a total of $137.4 the franc from the snake. At the same time, million equivalent of marks, financed by $80.9 the Dutch and Belgian authorities announced the million of drawings under the swap arrangement suspension of the separate 1.5 per cent Benelux with the German Federal Bank and by use of band. Over subsequent days, however, specula existing balances. In addition, the System sold tion persisted over the possibility of further $19.6 million equivalent of Dutch guilders, adjustments in rates for other European curren drawn on the swap line with the Netherlands cies and bidding for marks remained strong, Bank. pushing the dollar down a further 1 per cent. The immediate strains on the snake then These pressures spilled into the New York mar eased, as the concerted intervention by the ket on March 16-17, and the Federal Reserve member central banks was reinforced by strong again intervened in marks, selling $34.9 million statements by their respective governments equivalent, of which $29.8 million was drawn denying the need or advisability of rate adjust under the swap line and the remainder from ment. Trading conditions gradually improved balances. Thereafter, further sizable interven during late February, and the Federal Reserve tion in European currencies, supported by re intervened on only two occasions when the strictive monetary measures by those countries dollar dropped abruptly against the mark, selling whose currencies were pinned to the bottom of a total of $15.8 million equivalent from bal the snake, and firm denials by German and other ances. Otherwise, the dollar gradually rose EC government officials of any intention of against the main continental currencies to above altering existing parities led to a gradual relax the levels of early February, providing the op ation of these speculative tensions. portunity for the System to acquire $54.1 mil Meanwhile, evidence of additional improve lion of marks in the market and from corre ment in production and employment levels in spondents. Part of these acquisitions was used the United States, coupled with further encour in early March to repay $26.4 million of the aging price developments, reinforced the gener recently incurred swap indebtedness with the ally favorable market sentiment toward the dol German Federal Bank. lar. Market expectations of an early firming of This temporary calm in the European ex U.S. short-term interest rates also had a steady change markets was again broken early in ing influence. Consequently, although the dollar March, when sterling suddenly came under was at times caught up in the backwash of selling pressure and fell below the $2.00 level. further flows out of sterling and the Italian lira Market fears of widespread readjustments in in late March and April, it traded fairly narrowly European currency relationships quickly resur against the mark and other currencies in the EC faced. By March 5 the EC snake was again snake. The Federal Reserve therefore intervened stretched to its limits and required substantial only once in late March, selling $9.9 million intervention to maintain the prescribed margins. of marks from balances. Otherwise, taking ad As market concern over the durability of exist vantage of the dollar’s basic buoyancy on quiet ing parities in the European snake progressively days, the Federal Reserve acquired currencies deepened, intervention in EC currencies swelled needed to repay swap debt. The System thus to massive proportions. With markets increas purchased $119.6 million of marks in the market ingly nervous and unsettled, the Federal Reserve and from correspondents, liquidating a further entered the New York market on March 5 and $27.5 million of commitments in that currency, March 12 with offerings of marks, selling $52.8 and bought sufficient guilders in the market to million equivalent of which $23.2 million was liquidate in full the $19.6 million swap on the financed under the swap line with the German Netherlands Bank incurred in February. Federal Bank and the rest from balances. In summarizing operations over Febru Following a meeting of EC Finance Ministers ary-April, the Federal Reserve sold in the mar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
492 Federal Reserve Bulletin □ June 1976 ket a total of $270.4 million equivalent of TABLE 2 foreign currencies. In marks, System sales Drawings and repayments amounted to $250.8 million, with $133.9 mil on Federal Reserve System under lion financed by drawings under the swap ar reciprocal currency arrangements rangement with the German Federal Bank and In millions of dollars $116.9 million from balances. Mark purchases totaled $173.7 million equivalent, of which Drawings, $53.9 million was used to liquidate swap draw or re Drawings payments Drawings ings on the German Federal Bank, leaving $80 Banks drawing on on (~) on System System Feb. 1- System million equivalent outstanding at the end of the Jan. 31, Apr. 30, Apr. 30, period. The System also sold $19.6 million 1976 1976 1976 equivalent of Netherlands guilders financed by Bank of Italy ........................... 250.0 250.0 500.0 a swap drawing, which was subsequently repaid Bank of Mexico ..................... 360.0 360.0 with balances acquired in the market. Total ................................. 250.0 610.0 860.0 In addition, the Federal Reserve made further progress in repaying swap debt outstanding since August 1971. Throughout the period the System continued to buy Belgian francs in the market and from correspondents, purchasing $74.9 million equivalent. These acquisitions, TABLE 1 together with some existing balances, were used to repay $81.3 million equivalent of the draw Federal Reserve System ings on the National Bank of Belgium, leaving drawings and repayments $171.7 million outstanding at the end of April. under reciprocal currency arrangements The Federal Reserve in February transferred its In millions of dollars equivalent $600 million of Swiss franc swap debt from the Bank for International Settlements to the Swiss Drawings, System or re System National Bank. During the period, the System swap payments swap commit (-) commit purchased $33.2 million equivalent of Swiss Transactions with— ments Feb. 1- ments Jan. 31, Apr. 30, Apr. 30, francs from correspondents and liquidated $20 1976 1976 1976 million of its debt with the Swiss central bank. Swiss franc commitments outstanding at the end National Bank of Belgium 252.9 - 81.3 171.7 J 133.91 of April totaled $1,147.2 million. German Federal Bank .......... 80.0 1- 53.9J Also during the period, the Bank of Italy, J 19.61 Netherlands Bank .................... 1- 19.6J after having resumed market operations in early M 600.Ol Swiss National Bank ............ 567.2 \- 20.0j • 1,147.2 March, drew $250 million on its swap line with Bank for International Settle ments (Swiss francs) .. 600.0 1 -600.0 the Federal Reserve, raising total drawings to $500 million. In addition, in early April, the J 753.51 Total ................................. 1,420.1 1,398.8 \-774.8j Bank of Mexico drew the full $360 million available under its swap line with the Federal Consolidation of Swiss franc swap debt. Reserve. □ Note.—Discrepancies in totals are due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
493 The Independence of the Federal Reserve System It is a pleasure to be here on this beautiful value in moderating fluctuations in business campus and to join the audience in honoring activity. the graduating class of Bryant College. Even when the economy is booming, legisla In earlier and calmer times, it was customary tures are rarely willing to increase tax rates or for a commencement orator to address the prin to restrain the rising curve of governmental ciples of life that he thought would be most expenditures. Such reluctance also limits the helpful to members of the graduating class. discretionary use of fiscal measures to counter Such pronouncements are less fitting in our the forces of recession that develop from time turbulent age, which has sharply narrowed the to time in a free enterprise economy. Once gap in knowledge—if not also in wisdom—that reduced, tax rates cannot easily be increased once separated the generations. again, and new expenditure programs to stimu Yet each of us, and here your elders may late a lagging economy all too often are the have some advantage, has had opportunity to source of a new inflationary problem later on. reflect with more than ordinary care on his own Fortunately, monetary policy is relatively free range of responsibilities. I therefore want to of these shortcomings. Flexibility is the great share with you today a few thoughts about the virtue of instruments of monetary and credit Federal Reserve System, which serves as our policy. Changes in the course of monetary pol Nation’s authority for controlling the supply of icy can be made promptly and—if need be— money and credit. frequently. Under our scheme of governmental Industrial nations, including our own, nowa organization, the Federal Reserve can make the days rely heavily on monetary policy to promote hard decisions that might be avoided by deci expansion of production and employment, to sion-makers subject to the day-to-day pressures limit any decline that may occur in over-all of political life. And experience indicates that economic activity, or to blunt the forces of the effects of substantial changes in the supply inflation. There are two major reasons for the of money and credit are rather speedily trans emphasis on monetary policy. In the first place, mitted through financial markets to the work manipulation of governmental expenditures has shops of the economy—that is, our factories, proved to be a rather clumsy device for dealing mines, construction yards, and the range of with rapidly changing economic developments. service establishments. Secondly, the process of reaching a consensus The founders of the Federal Reserve System on needed tax changes usually turns out to be were well aware of the dangers that would complex and time consuming. Experience has inhere in the creation of a monetary authority thus taught us that alterations of fiscal policy, subservient to the executive branch of Govern once undertaken, frequently have a large part ment—and thus subject to political manipu of their economic effect too late to be of much lation. Senator Nelson Aldrich, Chairman of the National Monetary Commission, whose investi gations of central banking laid the basis for Note.—Address by Arthur F. Burns, Chairman, establishing the Federal Reserve System, was Board of Governors of the Federal Reserve System, at deeply impressed with the need for a strong the One Hundred and Thirteenth Commencement Exer monetary authority capable of exercising disci cises of Bryant College, Smithfield, Rhode Island, May 22, 1976. pline over the financial affairs of a nation. Carter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
494 Federal Reserve Bulletin □ June 1976 Glass, Chairman of the House Banking and Federal Reserve System, so that the interests Currency Committee when the Federal Reserve of borrowers, lenders, and the general public Act was passed in 1913, reported that the Com were to be recognized and blended in the new mittee regarded the Federal Reserve Board “as regional Federal Reserve Banks. a distinctly nonpartisan organization whose In the years that followed creation of the functions are to be wholly divorced from poli Federal Reserve System, experience—particu tics.” That view was fully shared by President larly during the Great Depression—suggested Woodrow Wilson, who was extremely careful that the degree of independence assigned to the to avoid any suggestion of interference with the monetary authority was insufficient. The Bank newly created monetary authority, thereby set ing Acts of 1933 and 1935 sought to rectify ting a precedent that has usually been followed this and also other defects in the financial struc by succeeding Presidents. ture. The concept of independence of the monetary Under the new legislation, the Secretary of authority within the structure of Government is the Treasury and the Comptroller of the Cur congenial to the basic principles of our Consti rency, who originally were ex officio members tution. As Alexander Hamilton put it in one of of the Board, were relieved of this respon the Federalist Papers, our system of Govern sibility. The terms of the members of the Board ment is based on the precept that partitions were lengthened from 10 years to 12 years, and between the various branches of Government then to 14 years, to insulate the Board still more “ought to be so contrived as to render the one from political pressures. A new agency—the independent of the other.” Such a division of Federal Open Market Committee, including power, according to another of the Federalist representatives of the regional Federal Reserve Papers, is “essential to the preservation of lib Banks as well as members of the Board located erty.” in Washington—was established to conduct The principle of independence of the mone open market operations, which by the early tary authority within the structure of our Federal 1930’s had come to play a major role in imple Government was embodied in the original Fed menting monetary policy. Moreover, the prin eral Reserve Act in several ways. First, indi ciple was reaffirmed that funds used by the viduals appointed to the Federal Reserve Board Federal Reserve to finance its operations were by the President were to have 10-year terms, not to be construed as Government funds or as and they could be removed from office only for appropriated monies. All of these legislative cause. A President could not, therefore, remove changes strengthened the ability of the Federal a Board Member from office simply because he Reserve System to resist efforts by the Treasury, disagreed with his views, and the term of office or the White House, or any other agency in the was long enough to minimize the threat of executive branch to influence unduly the course covert political pressure on Board Members. of monetary and credit policy. Moreover, the law provided for staggered terms Senator Carter Glass once stated that intelli in order to avoid Presidential “packing” of the gent and fearless performance of the functions monetary authority. of the monetary authority “involves as much Second, the newly created Federal Reserve of sanctity and of consequence to the American Board was required to report on, and to account people as a like discharge of duty by the Su for, its actions to the legislative branch of Gov preme Court of the United States.” We at the ernment, not to the Administration. Federal Reserve have in fact sought to model Third, the operations of the Federal Reserve our conduct on that of the Supreme Court. System were to be financed from its own internal In the exercise of our adjudicatory respon sources, and thus protected from the political sibilities, the members of the Board scrupu pressures that may be exercised through the lously avoid any contact with interested parties. congressional appropriations process. In our deliberations on monetary and credit Fourth, power was to be diffused within the policies, not the slightest consideration is given Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The Independence of the Federal Reserve System 495 to questions of political partisanship. Every modern economies is evident from the historical member of the Board, and every member of the experience of the nations around the world. Federal Open Market Committee, weighs the Among the major industrial countries, West issues of monetary and credit policy solely from Germany and the United States appear to have the viewpoint of the public interest and the achieved the greatest success—albeit woefully general welfare. My colleagues at the Federal insufficient success—in resisting inflationary Reserve are highly qualified individuals pos pressures in the period since World War II. It sessing a diversity of skills essential to the is no accident that both countries have strong management of the Nation’s financial affairs. central banks. In some other countries, where They live and work under a Spartan code that the monetary authority is dominated by the avoids political entanglement, conflicts of inter executive or the legislature, inflationary finan est, or even the appearance of such conflicts. cial policies have brought economic chaos and At the same time, the members of the Board, even extinguished political freedom. particularly its Chairman, maintain close contact It is, of course, essential that the monetary with members of the executive branch and the authority observe the spirit as well as the letter Congress in order to assure that the activities of our laws. In our democratic society the inde of the Federal Reserve are appropriately coordi pendence of a governmental agency can never nated with what other branches of Government be absolute. The Federal Reserve System is thus are doing. subject not only to the provisions of the Federal Our system of monetary management, I be Reserve Act but also to the Employment Act lieve, is thus working in the way the founders and numerous other statutes. The original design of the Federal Reserve intended. Nonetheless, of the Federal Reserve System recognized this there are now, as there have been over the years, duty by requiring the Federal Reserve to account some well-meaning individuals in our country for its stewardship to the Congress. The over who believe that the authority of the Federal sight responsibilities of the Congress for the Reserve to make decisions about the course of conduct of the monetary authority do not, how monetary policy should be circumscribed. The ever, require congressional involvement in the specific proposals that have been put forth over details of implementing monetary policy. The the years differ greatly, but they usually have technical complexities of adjusting monetary or had one feature in common—namely, control credit instruments to the needs of a modern by the executive branch of Government over the industrial economy are far too great to be dealt monetary authority. with by a large deliberative body. At the same A move in this direction would be unwise time, there is a significant role for the Congress and even dangerous. It is encouraging to find in setting forth the economic and financial ob that, despite occasional outbursts of temper, a jectives that the monetary authority is expected majority of the Congress share this belief. I to observe and honor. doubt that the American people would want to Over the past year, the Congress has been see the power to create money lodged in the exercising its vital oversight function through presidency—which may mean that it would in a new and more systematic procedure, spelled fact be exercised by political aides in the White out in House Concurrent Resolution No. 133. House. Such a step would create a potential for That resolution requires the Federal Reserve to political mischief or abuse on a larger scale than report to the Congress at quarterly intervals on we have yet seen. Certainly, if the spending the course of monetary policy and to project propensities of Federal officials were given freer ranges of growth in the major monetary and rein, the inflationary tendency that has weak credit aggregates for the year ahead. ened our economy over much of the past We at the Federal Reserve regard the dialogue decade would in all likelihood be aggravated. between the monetary authority and the Con The need for a strong monetary authority to gress stimulated by the Concurrent Resolution discipline the inflationary tendency inherent in as constructive. It has given the Congress a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
496 Federal Reserve Bulletin □ June 1976 better opportunity to express its views on the several decades have released powerful forces appropriateness of our actions. It has also pro of inflation that threaten the vitality of our vided us at the Federal Reserve with an oppor Nation’s economy and also the freedom of our tunity to explain fully the reasons for our ac people. tions, and to communicate to the Congress and Defeating the forces of inflation requires de to the public at large our firm intention to adhere termined action. Greater discipline is needed in to a course of monetary policy that is consistent our fiscal affairs, and structural reforms are not only with continued economic expansion at required to improve the functioning of our labor a satisfactory rate but also with further gradual and product markets. But all such reforms unwinding of inflationary tendencies. would come to naught in the absence of a Such a course of policy, I believe, is the only prudent course of monetary policy. At this crit option open to us if we as a Nation are to have ical time in our history, any interference with any hope of regaining price stability and main the ability of the Federal Reserve to stick to taining a robust economy. Our country is pass a moderate rate of monetary expansion could ing through a fateful stage in its history. Eco have grave consequences for the economic and nomic, social, and political trends of the past political future of our country. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
497 Membership of the Board of Governors of the Federal Reserve System, 1913-76 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin .............Boston ................Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg ...............New York ... do. Term expired Aug. 9, 1918. Frederic A. Delano ...........Chicago ........... do. Resigned July 21, 1918. W. P. G. Harding .............Atlanta ............ do. Term expired Aug. 9, 1922. Adolph C. Miller ...............San Francisco do. Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss ....................New York Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah ... Chicago .. Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Platt ......................New York June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills ...................Cleveland .......... Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell ...............Minneapolis ___ May 12, 1921 Resigned May 12, 1923. Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger .......Cleveland May 1, 1923 Resigned Sept. 15, 1927. May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.3 Edward H. Cunningham ..Chicago __ do. Died Nov. 28, 1930. Roy A. Young ...................Minneapolis Oct. 4, 1927 Resigned Aug. 31, 1930. Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee .........Kansas C May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black ...............Atlanta . May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak ...............Chicago June 14, 1933 Reappointed in 1936 and 1948. Re signed May 31, 1961. J. J. Thomas ......................Kansas City .. do. Served until Feb. 10, 1936.3 Marriner S. Eccles ...........San Francisco Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick .......New York .........Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee .................Cleveland ...................... do. Served until Apr. 4, 1946.3 Ronald Ransom ..................Atlanta ............................ do. Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas ............... Feb. 10, 1936 Resigned July 9, 1936. Richmond ....... June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. New York Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans ....... Richmond , Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. St. Louis ......... Apr. 4, 1946 Resigned Nov. 30, 1958. Boston ............. , Feb. 14, 1947 Died Dec. 4, 1949. Philadelphia ... . Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Atlanta ............. Sept. 1, 1950 Resigned Jan. 31, 1952. Minneapolis , . do.. Resigned June 30, 1952. Wm. McC. Martin, Jr. New York Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. Term expired Jan. 31, 1970. San Francisco ..Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. Kansas City ... do. Reappointed for term beginning Feb. 1, 1964. Resigned Apr. 30, 1973. For notes see page 498. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
498 Federal Reserve Bulletin □ June 1976 Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Minneapolis ... . Aug. 13, 1954 Died Oct. 21, 1954. . Philadelphia ... . Aug. 12, 1954 Served through Feb. 28, 1966. .Dallas ............... . Mar. 17, 1955 Retired Apr. 30, 1967. . Atlanta ............. Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. . Chicago ........... . Aug. 31, 1961 Reappointed for term beginning Feb. 1, 1962. Served until Feb. 13, 1976.3 Richmond ......... Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. San Francisco .. Apr. 30, 1965 Served through May 31, 1972. Andrew F. ! . Philadelphia ... . Mar. 9, 1966 Resigned Aug. 31, 1974. William W. . Dallas ............... May 1, 1967 Reappointed for term beginning Feb. 1, 1968. Resigned Nov. 15, 1971. . New York __ . Jan. 31, 1970 Term began Feb. 1, 1970. . St. Louis ......... . Jan. 4, 1972 Resigned June 1, 1975. San Francisco .. June 5, 1972 Resigned Jan. 2, 1976. . Kansas City ...,. June 11, 1973 Resigned May 15, 1976. . Boston ............. Mar. 8, 1974 Philip E. Coldwell . Dallas ............... . Oct. 29, 1974 Philip C. Jackson, Jr. . Atlanta ............. July 14, 1975 . Richmond ....... . Jan. 5, 1976 . Philadelphia ..... Feb. 13, 1976 . Minneapolis ... . June 1, 1976 CHAIRMEN4 VICE CHAIRMEN4 Charles S. Hamlin ...Aug. 10, 1914-Aug. 9,1916. Frederic A. Delano... Aug. 10, 1914-Aug. 9, 1916 W. P. G. Harding ...Aug. 10, 1916-Aug. 9,1922. Paul M. Warburg.......Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1,1923-Sept. 15,1927. Albert Strauss ..........Oct. 26, 1918-Mar. 15, 1920 Roy A. Young ........Oct. 4, 1927-Aug. 31,1930. Edmund Platt ............July 23, 1920-Sept. 14, 1930 Eugene Meyer ..........Sept. 16,1930-May 10,1933. J. J. Thomas ............Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black __May 19, 1933-Aug. 15,1934. Ronald Ransom ........Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles ...Nov. 15, 1934-Jan. 31,1948. C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe. .Apr. 15,1948-Mar. 31,1951. J. L. Robertson ........Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. Apr. 2, 1951-Jan. 31,1970. George W. Mitchell. .May 1, 1973-Feb. 13, 1976 Arthur F. Burns .......Feb. 1, 1970- Stephen S. Gardner ..Feb. 13, 1976- EX-OFFICIO MEMBERS1 SECRETARIES OF THE TREASURY W. G. McAdoo........Dec. 23, 1913-Dec. 15, 1918 COMPTROLLERS OF THE CURRENCY Carter Glass .............Dec. 16, 1918-Feb. 1, 1920 John Skelton Williams Feb. 2,1914-Mar. 2, 1921 David F. Houston ...Feb. 2,1920-Mar. 3, 1921 Daniel R. Crissinger..Mar. 17, 1921-Apr. 30, 1923 Andrew W. Mellon ..Mar. 4, 1921-Feb. 12, 1932 Henry M. Dawes ....May 1,1923-Dec. 17, 1924 Ogden L. Mills ........Feb. 12, 1932-Mar. 4, 1933 Joseph W. McIntosh..Dec. 20, 1924-Nov. 20, 1928 William H. Woodin...Mar. 4,1933-Dec. 31, 1933 J. W. Pole .................Nov. 21, 1928-Sept. 20, 1932 Henry Morgenthau, Jr.Jan. 1, 1934-Feb. 1, 1936 J. F. T. O’Connor ..May 11, 1933-Feb. 1, 1936 1 Under the provisions of the original Federal Reserve Act the of the Currency should continue to serve as members until Feb. Federal Reserve Board was composed of seven members, in 1, 1936; that the appointive members in office on the date of cluding five appointive members, the Secretary of the Treasury, that Act should continue to serve until Feb. 1, 1936, or until who was ex-officio chairman of the Board, and the Comptroller their successors were appointed and had qualified; and that of the Currency. The original term of office was 10 years, and thereafter the terms of members should be 14 years and that the the five original appointive members had terms of 2, 4, 6, 8, designation of Chairman and Vice Chairman of the Board should and 10 years, respectively. In 1922 the number of appointive be for a term of 4 years. members was increased to six, and in 1933 the term of office 2Date after words “Resigned” and “Retired” denotes final was increased to 12 years. The Banking Act of 1935, approved day of service. Aug. 23, 1935, changed the name of the Federal Reserve Board 3Successor took office on this date. to the Board of Governors of the Federal Reserve System and 4 Chairman and Vice Chairman were designated Governor and provided that the Board should be composed of seven appointive Vice Governor before Aug. 23, 1935. members; that the Secretary of the Treasury and the Comptroller Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
499 Statements to Congress Statement by J. Charles Partee, Member, Board that we avoid recreating the conditions that led of Governors of the Federal Reserve System, to the past recession, and could do so again. before the Committee on Banking, Housing, and This means that continued attention must be Urban Affairs, U.S. Senate, May 20, 1976. directed to questions of economic structure and balance, including avoidance of the extremely I appreciate the opportunity to present the views injurious effects of rapid inflation. of the Board of Governors of the Federal Re We at the Board are gravely concerned that serve System on S. 50, the “Full Employment the net effect of S. 50 would be to add substan and Balanced Growth Act of 1976.” This bill tially to the inflationary bias already evident in would amend the Employment Act of 1946, the performance of the Nation’s economy, which requires the Federal Government to uti without generating a lasting increase in produc lize all of its resources in order to foster condi tive employment opportunities. The events of tions that “promote maximum employment, recent years have demonstrated again that rapid production and purchasing power. ” The Federal inflation can undermine prosperity and exacer Reserve Board fully recognizes its responsibility bate unemployment. The inflation of 1973 and under the 1946 Act and has reported regularly 1974, with its adverse effects on real incomes, to the Congress on its efforts to further the attitudes, and the quality of economic decision objectives of the law. The central question fac making, was a major force contributing to the ing the Congress as it considers S. 50 is whether subsequent deep economic recession. It should or not the proposed amendments will help to be clear from this experience that such condi advance the goals of the original Act. I am sorry tions exact their toll in terms of economic ineq to say that we do not believe they will. The uity and social discontent. The American people bill is both too rigid and too inflationary and, have become painfully aware of the costs of on balance, would likely prove to be inconsist inflation and of the need to control it. ent with the long-term economic well-being of It is of critical importance, we believe, that the Nation. the containment of inflation be recognized ex Unemployment has been a very serious prob plicitly as a national objective inseparable from lem recently in the United States, as in many the goals of maximum employment and pro other countries. But this condition is mainly a duction. Indeed, a principal flaw in the 1946 product of the recession, which in turn was Act is its failure to identify clearly price stability caused by the excesses and imbalances that had as a long-run economic goal. S. 50 shares and developed earlier in the economy. With eco extends this shortcoming. In the Board’s judg nomic recovery, good progress is being made ment, the anti-inflation provisions of the bill are in restoring jobs, and the unemployment rate too weak and too vague to be satisfactory. has dropped IV2 percentage points over the past Nowhere are there workable safeguards against year. inflation. Instead, the bill has many provisions Substantial further progress is necessary in that would contribute further to conditions and creating new job opportunities, thereby reducing practices that would likely result in an intensifi unemployment and providing for the absorption cation of upward price pressures. of a steadily growing labor force. This must be Certainly, one inflationary feature is the bill’s a primary objective of governmental economic objective of 3 per cent adult unemployment to policy. Also of crucial importance, however, is be reached and sustained within 4 years follow Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
500 Federal Reserve Bulletin □ June 1976 ing enactment. This is a most arbitrary target. many past stabilization programs has been tim Historically, a 3 per cent adult unemployment ing. Although the bill calls for the establishment rate is very low. Over the past 30 years, the of triggers and allocation formulas, I believe it jobless rate for those 18 and over has been in is still unlikely that we would avoid the pitfall the neighborhood of 3 per cent only during of applying the aid too late in an economic 1952-53 and 1968-69, years in which the num downturn and continuing it too far into a recov ber of men in the Armed Forces was more than ery, when the effect on price pressures can be Vh million—half again as high as the present most pronounced. Experience has shown that level. Moreover, both of these periods of such defects in timing have been particularly heightened economic activity were charac marked in programs of accelerated public terized by demand-pull inflationary pressures works—one of the bill’s recommended options. and were followed eventually by major reces The inflationary implications of some of the sions. Thus, our postwar experience has been other suggested programs—including those to that achievement of 3 per cent unemployment stabilize State and local government budgets is likely to be accompanied by substantial up over the cycle and to extend unemployment ward price pressures and followed by economic insurance—also require careful evaluation. decline, rather than by sustained full employ The major inflationary thrust from the coun ment. tercyclical programs, however, would come In addition, the setting of a rigid unemploy from the specific provisions of this bill that make ment goal ignores the dynamic character of the the Federal Government the employer of last American labor force. The jobless rate of a resort. While worthy in principle, the program decade or so ago does not have the same mean as specified in S. 50 has a critical flaw. It ing as the current rate, principally because of requires the payment of prevailing wages, de the shifting composition of the labor force and fined where applicable as the highest of the the more liberal nature of our Federal income- following: the Federal minimum wage, the State support programs. Today’s labor force has rela or local minimum wage, the prevailing wage tively more new entrants and re-entrants— in State or local government, or the prevailing chiefly young persons and married women— wage in construction as specified by the Davisthan it did then. These groups typically have Bacon Act. higher rates of joblessness as they search—often This program—and these wages—would intermittently and through trial and error—for have profound inflationary consequences for a satisfactory job. It is reasonable to think that several reasons. First, the program would result this has biased the official jobless rate in an in substantial cost-push pressures. Private labor upward direction. markets would be tightened, and this would Indeed, the fact that the bill sets forth an cause private employers to bid up wage rates unemployment target while making no mention in order to obtain and retain workers. Also, by of a comparable specific objective with regard making public jobs available at attractive wages to inflation is illustrative of its uneven treatment as a matter of right, the program would encour of these two economic problems. I would not age workers now employed in the private sector urge that any fixed target for short-run price to press for even larger wage gains, or to behavior be set; the meaning of an inflation rate, transfer to governmental jobs. As an example, in its own way, can be as changeable as the any construction project under this bill would meaning of a jobless rate. My purpose simply pay the going union rate; but since a large is to point out the bias of S. 50 in favor of proportion of building in the United States is one important national goal at the expense of nonunion, this wage would be higher than many another. construction workers now receive and would Some of the countercyclical and structural provide an alternative preferable to their existing programs of S. 50 are likely to introduce im jobs. portant new elements of inflationary bias into Second, the employer-of-last-resort program, our economic system. A significant problem of as specified, would very likely come to generate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 501 significant demand-pull pressures on prices. measures includes the following: a comprehen Given our national reluctance to raise taxes sive information system to monitor inflationary sufficiently to cover increases in Government trends; programs to encourage greater supplies spending, the financing of the program would of goods, services, and factors of production; tend to add to the Federal deficit—very sub export licensing; establishment of stockpile re stantially so, at some points in time. In this serves of food and critical materials; encour fiscal year, for example, the Federal Govern agement to labor and management to raise pro ment is spending close to $3 billion to support ductivity through voluntary action; and propos some 320,000 public service employment jobs als to increase competition. in State and local government. The program Whatever the individual merits of these pro proposed by S. 50 has the potential of being grams—and some are worthy of careful consid many times larger than this. Its attractive wage eration—one fact is abundantly clear. These provisions would draw not only from the unem programs do not constitute an effective policy ployed but also from those working part-time of inflation control. We believe that it would or at less desirable jobs and from those not be a most serious mistake to discard the use presently in the labor force, including retired of monetary and fiscal policy for stabilization persons, housewives, and students. The upper purposes without first finding some effective bound of potential participation cannot be esti alternative means of constraining inflation on an mated with any degree of accuracy. But it seems enduring basis. quite possible that several million jobs might Moreover, the bill’s adoption of a trigger come to be needed to employ all of those point with regard to economic goals simply does seeking these positions at the relatively attrac not provide a workable basis for employing tive rates of pay that would be offered. Such accumulated knowledge about the behavior of a program might therefore involve $30 billion the economy. It would not be practicable, in or more in outlays at current average pay scales. my view, to focus macro-economic policies I might note also that we have learned from exclusively toward a full employment goal and the existing public service employment pro then, at a given point, abruptly shift attention grams that cost offsets in terms of reduced to the containment of inflation. That is analo transfer payments under other programs may not gous to approaching a stoplight at top speed, be so large as is often thought. Only about and then applying the brakes with equal vigor; one-fourth of public service program enrollees the momentum would be sure to carry one into in 1975 had been receiving unemployment in the intersection, or the deceleration to send one surance or public assistance prior to partici through the car’s windshield, or more probably pation in the program. both. There needs to be the latitude to modulate Far and away the most significant defect of and balance policy objectives to changing eco the bill as far as inflation is concerned, however, nomic circumstances if we are to have any hope results from the limitations it places on the of achieving a lasting economic prosperity. exercise of monetary and fiscal policy. If I The changes required by the bill would go interpret S. 50 correctly, such policies are to considerably beyond narrowing the options for be directed solely to the achievement of the 3 modulating macro-economic policy objectives per cent unemployment goal until this target is in accord with perceived needs of the economy. reached. Only when that rate is below 3 per They would also alter dramatically the features cent can macro-economic tools be directed in of the existing process for review and oversight any degree to the problems of inflation and of the monetary policy function. In this regard, economic instability. Instead, these fundamental I would like to direct my comments to two techniques of demand management—used specific provisions. First, the President is re throughout the world in governmental efforts to quired to recommend a particular plan for mon combat inflation as well as unemployment—are etary policy and to submit it annually to the to be supplanted in the bill by a series of specific Congress along with his numerical goals for program initiatives. The list of these substitute employment, production, and purchasing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
502 Federal Reserve Bulletin □ June 1976 power. Second, within 15 days of the Pres in this record that suggests that we can relent ident’s report, the Federal Reserve Board is in the battle to avoid excessive deficit financing. required to submit its intended policies for the But instead, S. 50 proposes to weaken one key coming year to the Congress, indicating the safeguard against inflationary public finance by extent to which its plans support the goals of introducing the executive branch explicitly and S. 50 and providing justification for any varia publicly into the making of monetary policy. tion from the recommendations that were made And were the Congress to mandate these new by the President. procedures, it also would significantly dilute its The Federal Reserve Board strongly objects pre-eminent role in the oversight of the mone to these proposed new procedures on two tary policy process. grounds: (1) They would alter the traditional Moreover, the proposed procedures for the relationships among the Congress, the Federal planning and evaluation of monetary policy are, Reserve, and the executive branch in a way that for operational reasons, inferior to those now could well prove detrimental to the economic in place. Under House Concurrent Resolution well-being of the Nation, and (2) the procedures 133, the Federal Reserve Board reports on eco specified would seriously impair the current nomic and financial developments and specifies operational flexibility needed in the formulation its current expectations for a variety of monetary and conduct of monetary policy. aggregates on a quarterly schedule, alternately The Federal Reserve Act was carefully drawn before the banking committees of the House and up to specify a relationship between the Con Senate. The great advantage of this reporting gress and the Federal Reserve System that procedure is that it permits the Federal Reserve would serve to insulate the monetary authority the flexibility necessary to adapt monetary pol from short-run political pressures. This feature icy to changing economic conditions. The pro of the Act stemmed from a well-founded con cedures proposed in S. 50 would curtail such cern that excessive government spending could flexibility. be aided and abetted if the executive were There are two major changes in the existing granted the authority to control a nation’s money process required by S. 50: (1) Policy planning supply. It is a fact of economic history that is moved from a quarterly to what would effec governments everywhere have come under great tively be a 12- to 15-month reference period, pressure to engage in massive deficit spending, and (2) there would appear to be a fixed com at one time or another, even though this patently mitment to longer-term plans for monetary pol jeopardizes the longer-run health of the econ icy in support of specified numerical national omy. History also is replete with the inflationary economic goals. On the basis of experience, the consequences that have followed when govern Board is convinced that these changes would ments have given in to such temptations and make the proposed planning and evaluation have then simply run the printing presses in process too rigid to be workable. As this com order to supply the money needed to finance mittee is aware, the ability of economists to their deficits. forecast economic events for a year or more into The need to turn to private financial markets the future with any high degree of reliability in order to finance deficit public spending per simply does not exist. Two rather notable recent forms an important function. The process of illustrations of forecasting imprecision come financing shifts purchasing power from private quickly to mind: the extraordinarily high rates savers to the government, thus neutralizing of inflation that developed in 1973 and 1974 much of the potential inflationary effect of defi that virtually no one foresaw, and the severity cit financing, while the necessity of finding of the 1974-75 recession, which was also quite willing investors imposes a market discipline on unexpected. In either case, it would have been the scale of such deficits. But even in the United a serious error to adhere to outdated plans based States, where this discipline has largely pre upon economic forecasts that proved to be wide vailed, the Federal budget has been in deficit of the mark. every year but one since 1960. There is nothing In addition, the current state of knowledge Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 503 about the relationship between movements in can make in helping to achieve our national the monetary aggregates and real economic ac economic goals. tivity is not nearly so precise as the comments Let me turn now to what this bill has to offer of some economists would have you believe. by way of improving the trade-off between In recent quarters, for example, there appears unemployment and inflation. to have been a dramatic reduction in the amount We have all painfully learned that the unemof money needed to accommodate the expansion ployment-inflation trade-off—generally thought in gross national product. Under these circum to be shaped by our human and material re stances, holding to a course of monetary growth sources, our economic institutions and pro that might have been suggested by historical cesses, and our social practices and aspira money/GNP relationships could have been quite tions—has grown distinctly more unfavorable in damaging. Speculative activities would have recent years. A simple but useful illustration of been encouraged, thus sowing the seeds for this deterioration is the so-called discomfort future economic instability, and the foundation index, which adds together the unemployment might well have been laid for a renewal of rate and the rate of increase in consumer prices. intensified inflationary pressures. Last year, that index was 15.6, while a decade Technical and financial innovations, accom ago it was 6.4 and two decades ago, 4.8. panied by regulatory changes, undoubtedly have High unemployment side by side with high accounted in part for the slower growth in the rates of inflation presents the most difficult narrowly defined money stock. For example, the problem facing economic policy-makers, not spread of overdraft checking-account credit only in the United States but throughout the privileges, increased use of credit cards to fa world. The sources of this problem are far from cilitate transactions, and the introduction of fully understood, but an important part appears savings accounts at commercial banks for busi to be structural in nature and, therefore, rela ness firms all have tended to encourage greater tively immune to monetary and fiscal policy. economizing in the use of currency and check A look at the composition of unemployment ing-account balances. These effects could not figures illustrates some of the structural impedi have been estimated with any accuracy in ad ments in labor markets. Groups experiencing the vance, however, and in any event, I do not think greatest barriers—discrimination, marginal that they provide a complete explanation. The skills, location in depressed areas—have jobless fact is that there is a potential for short-run rates well above the national average, even volatility in monetary relationships that can when the economy is not in a recession. For make economic forecasts based on monetary example, in the pre-recession year of 1973, inputs quite treacherous. when the national average unemployment rate These uncertainties about monetary and eco was 4.9 per cent, black joblessness was 8.9 per nomic relationships require exceptional vigi cent while 14.5 per cent of all teenagers in the lance and flexibility by the Federal Reserve, and labor force were unemployed. serve to point out the need for flexibility as an The bill properly recognizes the importance attribute of the monetary policy process. Ours of structural problems and suggests a variety of is a complex and dynamic economy ; its linkages programs to alleviate them. There are many and responses are still imperfectly understood such programs that might prove beneficial, but and probably always will be. Thus, in order to I believe that two broad areas deserve special accomplish the objectives of economic stabili emphasis. First are programs that would help zation, the formulation and conduct of monetary to increase competition in product and factor policy need to retain the flexibility to adapt to markets. There is need to reassess the effec unforeseen developments in our economic and tiveness of our antitrust legislation—with regard financial system. For these reasons we believe to both business and labor practices—and the the provisions of S. 50 with respect to the anticompetitive effects of Federal regulation of monetary policy planning process would serve all kinds. We need also to re-examine the costs to impair the contribution the Federal Reserve and benefits of such Federally mandated pro Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
504 Federal Reserve Bulletin □ June 1976 grams as the Davis-Bacon Act, the minimum A new emphasis on structural programs such wage for teenagers, and extended unemploy as these, together with prudent monetary and ment insurance. Second are programs that fiscal policies, will provide our best hope for would serve to increase over time the employa achieving the goals of the Employment Act of bility of the jobless. We need better and more 1946. But the Board believes that S. 50, while imaginative training programs and an improved reasserting these goals, would in the end be labor market information system that would counterproductive in the effort to achieve them. match job vacancies with available people, per The bill would release a powerful combination haps on a national basis. of demand-pull and cost-push pressures on Other programs are worthy of consideration. prices. We should find effective ways to encourage As has been demonstrated by the expe more investment in productive plant and equip rience of many other countries—and, to a de ment, through stronger incentives and perhaps gree, by our own experience of recent years— some revisions in the tax laws. We should stress rapid inflation can breed economic instability programs to improve efficiency in both private and ultimately retard—not promote—the growth and public sectors. The Board would endorse of productive jobs. If we are truly to commit the principle of zero-base budgeting, which ap ourselves to the broad goals of the 1946 Act, pears to be contemplated by the feature of S. we need programs and policies that achieve a 50 requiring the review of one-fifth (by dollar greater balance among our economic objectives value) of all Federal programs annually. than is recognized in S. 50. □ Statement by Stephen S. Gardner, Vice Chair Senator Percy. In acknowledging his letter, man, Board of Governors of the Federal Re Chairman Burns warmly endorsed the broad and serve System, before the Committee on Govern responsible objectives contained in the proposal ment Operations, U.S. Senate, May 24, 1976. and concurred that the cost of regulation places heavy burdens on the economy. It is a pleasure to appear before this committee I specifically refer to statements in the find on behalf of the Board of Governors of the ings and purposes that “Government economic Federal Reserve System to present the Board’s regulation all too often has become a burden views on Senate bills 2812, 3428, 2258, 2716, rather than a benefit.” There can be little doubt 2878, and 2903. that regulatory agencies have contributed to I am sure the committee is aware that the inflation and forced rigidities in our economy Federal Reserve Board’s unique responsibility by limiting competition and at times even con for monetary policy not only gives rise to tributing to “monopolistic and cartel-like mar changes in the price and availability of money ket patterns contrary to the public interest. ’ ’ The and credit but also is implemented through a charge that regulators have often failed to set modest amount of regulation that affects credit clear priorities and have contributed to excessive flows in the economy. But the reorganization paperwork and delay in the regulatory process bills are not directed at monetary policy actions, is hard to deny. The conclusion that regulatory and it might be well to make this an explicit agencies “consistently fail to take consumer and exception. small business interests adequately into ac I would like to begin by discussing S. 2812. count” may have been particularly true in years The Board agrees with the objectives of this bill past, but the Congress and the regulatory agen as expressed in the title and with the findings cies are obviously moving to correct this defi and purposes of the bill. The proposed legisla ciency. tion was brought to the Board’s attention by In view of this preface to S. 2812, it seems Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 505 appropriate to point out that in its regulatory quently have to face conflicting mandates in role the Federal Reserve does not set fares or trying to carry out their regulatory respon prices or rates charged to the public. In addition, sibilities. I could cite the notorious Regulation in the matter of competition, the Board cannot Q, which limits the interest paid to small savers take actions that it determines to be anticompet and limits the competition among financial in itive under the provisions of the Bank Merger stitutions for the express and equally desirable and Bank Holding Company Acts unless these purpose of protecting the supply of mortgage considerations are outweighed by other public credit. interest factors of greater merit. In administering In other areas, the Congress has frequently those Acts, the Board does deny applications addressed issues that have social merit but con on the basis of anticompetitive considerations, flict with other desirable goals. For example, even though such adverse competitive issues are much financial institution regulation is directed not of sufficient magnitude to constitute a viola at protecting the public and maintaining sound tion under antitrust law. Appendix A of my financial institutions. But the Congress has also testimony is a summary of the procedures that expressed concern about the availability of the Board follows in assessing the competitive credit to small business and urban development impact of bank structural changes.1 and housing that bears a higher-than-normal The Board has also been charged in recent degree of risk. years by the Congress with a variety of respon The Board is very impressed with the mount sibilities to protect consumer interests. This is ing evidence of serious interest on the part of a familiar role since the Board must frequently the Congress and the administration in mean work in concert with the Federal Deposit Insur ingful and objective regulatory reform to resolve ance Corporation and the Comptroller of the the problems of regulation. Having already en Currency to protect depositors in prospective dorsed the thrust of S. 2812, we also believe bank failures. Appendix B is a digest of the that S. 3428 should be given careful consid Board’s regulations and activities related to eration. It is obviously important to include all consumer protection. interrelated industry regulations in the consid If one compares the title and findings and eration of each agency reorganization plan as purposes stated in both S. 2812 and S. 3428 proposed in the administration bill. This is par with the statutes that the depositary institution ticularly true, as you know, because both bills regulators are charged with administering and are concerned with rationalizing conflicting if one assesses the competitive situation in the Government agency directives. We have the industry being regulated, it seems clear that further concern that the time allowed for con much of the present regulation of financial in sideration of each industry or agency review be stitutions is entirely consistent with many of the sufficient to prevent the sheer size of the project purposes of the two regulatory reform propos from affecting the ability of the administration als. I do not mean, however, to recommend and the Congress to act judiciously. The initial exemption of the depositary institution regula date of January 31, 1978, for planned submis tors and their processes from such reforms. The sion of S. 3428 may be more realistic than the regulation of banks and thrift institutions does March 31, 1977 date prescribed in S. 2812. involve considerable paperwork and often We are also concerned about the provision delays the implementation of services that fi in S. 2812 that invalidates all rules and regula nancial institutions can offer. In addition, there tions of an agency covered by a reorganization is some overlap among Federal agencies in the plan 15 months after its submission if the Con regulation of depositories, and regulators fre- gress has not completed action on that plan in the meantime. Such a rigid provision may result in inadequately considered legislation changing ^he appendixes to this statement are available on or reconstituting existing agencies, or in a lapse request from Publications Services, Division of Admin in regulatory authority that may be needed in istrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. the public interest. We believe that it would be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
506 Federal Reserve Bulletin □ June 1976 better not to create a legal framework in which committees of the Congress in order to provide a regulatory lapse is the forcing mechanism for for continuing and effective oversight. action. S. 2878 also provides for the establishment On the subject of review of agency regula of an Office of Regulatory Policy Oversight. The tions, S. 2258, S. 2716, S. 2878, and S. 2903 Board believes that it is important for the Con all contain a provision for congressional veto gress to give attention to oversight jurisdiction of agency regulations. The Board opposes such to avoid duplication of oversight activities and a congressional veto. Delegations of authority to establish standards and principles for such to the agencies to administer laws by rules and processes. A review of oversight organization regulations have been made by the Congress in is as appropriate as the proposed review of most cases because the subjects involved are of regulations. such a technical or specialized nature that the There is much that can be done to improve Congress has concluded that they should be the regulation of financial depositary institu governed by an expert body. When the Congress tions, but I must point out that this subject has amended the Bank Holding Company Act in received significant congressional attention in 1970, it rejected the concept that specific hold the last 2 years. As you know, there have been ing company activities permitted should be de recent and detailed hearings and congressional termined by the Congress and committed this interest in many phases of financial institution responsibility to the Board of Governors to be regulation. The banking committees of the Sen exercised under a broad legislative standard. We ate and the House have both had hearings on believe that it would be a mistake to take the reorganization proposals in 1975 and 1976. authority for these determinations and compara Governors of the Federal Reserve Board have ble actions of other agencies away from the testified before these committees on proposals organizations charged with the day-to-day ad for financial agency reorganization on four sep ministration of the laws. It would seem prefera arate occasions between July 1975 and March ble to consider changes in the governing stand 1976. Neither committee of the Congress has ards set forth in the substantive law when the agreed to adopt any of the various reorganiza Congress is dissatisfied with agency administra tion proposals submitted to them. tion rather than to provide for new procedures In addition, there are a number of current that could lead to less efficient administration. initiatives germane to the purpose of S. 2878 Many of the problems that give rise to these in other proposed legislation being debated in proposals for a congressional veto could be the appropriate Senate and House committees. offset by improved congressional oversight. The Further, the financial agencies have made a Board has recently proposed to the Senate and number of changes that are addressed to im House banking committees a program for con proving regulatory procedures and performance. gressional oversight of the bank supervision Federal Reserve Board initiatives are listed in function under which the Congress would re Appendix C. The Board has also been monitor view the supervisory process with more fre ing the continuing need for regulations and quency. This proposal envisages providing the report forms. The Board now has under review banking committees with information as to an analysis of its regulations by a study group trends of capital, liquidity, earnings, classified whose objective was to find areas where simpli loans, and portfolio losses. The Board believes fication and reduction of regulations could take that these data and other information about the place. Appendix D lists changes in Board re bank examination process would provide a fac porting requirements since 1970. tual basis for the banking committees to evaluate Finally, I would like to comment briefly on the effectiveness of bank supervision and regu the U.S. banking industry of which the Federal lation. Reserve is a primary regulator. We have sup Similar arrangements for furnishing informa ported the purposes and objectives of S. 2812 tion and analyses could be arranged between and S. 3428 because we believe that a balanced other regulatory agencies and the appropriate and objective assessment of banking and bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 507 regulation is in the public interest. In this needed by regulators. But if we are to achieve process analyses of the competitiveness and effective regulatory reforms, it is also important safety of the banking system will inevitably be to achieve a consensus evaluation of the system. made and contrasts can be drawn with the past It is our view that through growing liquidity, and with systems developed in other indus improved earnings, and additions to capital, the trialized nations. I expect that attention will be banking system remains sound with its compet focused on the performance of banks and bank itiveness undiminished. The Board commends regulators during the extraordinarily difficult the committee’s initiative in undertaking this period of 1973-7$. Our recent experience does study of these important and complex problems, give us useful guidelines for improving regula and we would be pleased to contribute to the tion and assessing the adequacy of the tools further work of the committee. □ Statement by John D. Hawke, Jr., General such commercial documents as invoices, bills Counsel, Board of Governors of the Federal of lading, and certificates of insurance. Reserve System before the Subcommittee on In connection with exports to certain Middle Commerce, Consumer, and Monetary Affairs of Eastern countries, however, it has become cus the Committee on Government Operations, U.S. tomary for importers to include requirements in House of Representatives, June 9, 1976. letters of credit calling for the presentation of various types of certificates intended to give I am pleased to appear on behalf of the Board effect to the Arab boycott of Israel. For ex of Governors of the Federal Reserve System to ample, the importer may require that the ex discuss the limitations of existing laws with porter certify that the goods are not of Israeli respect to the Board’s ability to deal with the origin, that the goods are not being shipped in participation of U.S. banks in foreign boycott an Israeli vessel or a vessel that will call at an practices. Israeli port, or that the exporter itself is not on, At the outset, I should state that the only or affiliated with a company on, the Arab boy evidence the Board has of bank participation in cott list or will otherwise agree to abide by the boycott practices relates to the financing of terms of the Arab boycott of Israel. exports from the United States to Middle East Federal law does not generally prohibit U.S. ern countries. Specifically, the Board has re banks from issuing or confirming letters of credit ceived complaints that certain American banks containing such boycott clauses. While the Ex have been giving effect to the Arab boycott of port Administration Act of 1969 declares it to Israel by processing letters of credit containing be the policy of the United States to oppose boycott provisions. Letters of credit are a con boycotts against foreign countries friendly to the ventional means by which an importer arranges United States, the Act does not prohibit do to make a payment in an international business mestic concerns engaged in the export trade transaction. In the typical case, an importer will from taking action that has the effect of further open a letter of credit through a bank in his ing such a boycott. In this regard, the Act own country, which will then arrange to have merely states that it is U.S. policy to “encour the credit confirmed by a correspondent bank age and request” domestic concerns not to take in the exporter’s country. A letter of credit is such action. Regulations of the Department of simply an undertaking that the issuing or con Commerce under the Act prohibit all exporters firming bank will honor a draft presented to it and related service organizations, including for payment when the draft is accompanied by banks, from taking any action in connection certain documents specified in the letter of credit with an export transaction that has the effect itself. In the normal case, these would include of furthering or supporting a boycott against a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
508 Federal Reserve Bulletin □ June 1976 country friendly to the United States when that constitute a violation of law or regulation by practice would have the effect of discriminating that bank, I believe that the Supervisory Act against U.S. citizens or firms on the basis of would empower the appropriate banking agency race, color, religion, sex, or national origin. to institute a cease-and-desist proceeding to ter However, as to other boycotts—that is, boycotts minate and remedy that practice. The ceaseother than those having the prohibited discrim and-desist power could be invoked, therefore, inatory effect—the Department’s regulations where a bank took action in furtherance or simply reiterate the statutory encouragement and support of a boycott against a friendly foreign request to domestic concerns not to participate. country under circumstances in which the effect On December 12, 1975, the Board of Gover was to discriminate against U.S. citizens on the nors issued a policy statement dealing with the basis of race, color, religion, sex, or national participation by member banks in foreign boy origin. For example, such a case might arise cott activities. The Board’s statement called the if a bank enforced a provision in a letter of credit attention of member banks to the policy of the that required the exporter to certify that it had United States as set forth in the Export Admin no officers or directors of the Jewish faith. The istration Act and to the newly adopted regula Board has no evidence that banks have engaged tions of the Department of Commerce under the in such prohibited boycott practices, however, Act, and expressed the view that it was inap and while our cease-and-desist authority would propriate for U.S. banks to give effect to a empower the Board to take remedial action in boycott against a friendly foreign country. The such a case, the violation in issue would relate Board’s statement made reference to the inclu to the Commerce Department’s Export Admin sion of boycott provisions in letters of credit, istration Regulations and not to any present and it noted that the agreement by a U.S. bank regulation of the Board. The Congress has, of to observe such provisions in a letter of credit course, given the Department of Commerce could constitute a violation of Federal antitrust principal responsibility for implementing U.S. laws or applicable State anti-boycott laws. The policy under the Export Administration Act. Board’s views were reaffirmed in a clarifying Under the Supervisory Act a cease-and-desist statement on January 20, 1976. proceeding could be instituted to remedy an Following the issuance of these statements, unsafe or unsound practice by a bank, even it was called to the Board’s attention that some though no violation of law or regulation were U.S. banks were continuing to process letters present. Although the participation by a bank of credit containing boycott clauses, and the in a boycott might be argued by some to be Board was urged to take enforcement action to an “unsound” practice, this provision of the terminate that practice. In this connection, the Supervisory Act has generally been viewed as Board’s legal staff has given consideration to reaching practices that threaten the financial the extent to which action by the Board might safety or soundness of the bank itself. Thus, be authorized under existing law. in the absence of a violation of law or regulation The principal enforcement power that the I do not believe the Supervisory Act would Board has is its authority under the Financial provide an effective sanction against boycott Institutions Supervisory Act of 1966 to issue practices by banks. cease-and-desist orders against State banks that The Legal Division has also considered are members of the Federal Reserve System. whether the Board’s authority under the Federal Under the Act such orders may be issued to Trade Commission Improvement Act to adopt remedy violations of law or regulations or un regulations defining unfair or deceptive trade safe or unsound banking practices. The Comp practices by banks would afford a remedy. The troller of the Currency and the Federal Deposit Board’s power to define unfair or deceptive Insurance Corporation have identical powers practices is a new one, and its boundaries have with respect to national banks and nonmember not yet been fully explored. Even if boycott insured banks, respectively. If the involvement practices could be considered “unfair” within of a U.S. bank in a boycott practice would the meaning of this Act, it is ques Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 509 tionable—particularly in light of the fact that exporter-beneficiary of a letter of credit can be the Congress has given the Department of considered to be an “applicant” for credit Commerce principal responsibility for enforcing within the meaning of the Act. In any event, U.S. policy with respect to foreign boycott even if the Board has authority under the Equal activities—whether it would be appropriate for Credit Opportunity Act to protect exporters in the Board to use this authority to prohibit boy such transactions, regulations under this Act cott practices that the Congress has decided not would seem to be duplicative of those already to declare unlawful under the Export Adminis in force at the Department of Commerce under tration Act. the Export Administration Act. I have serious Finally, our staff has considered the Board’s reservations about whether the Board’s legal authority under the Equal Credit Opportunity staff could find authority under the Equal Credit Act amendments of 1976 to adopt regulations Opportunity Act to prohibit the enforcement of relating to discrimination in credit transactions boycott provisions in letters of credit that give on the basis of race, color, religion, or national effect to the Arab boycott of Israel but that do origin. Again, I believe this authority would be not have the effect of discriminating against of limited utility in reaching boycott practices U.S. citizens on the basis of race, religion, or that were not otherwise prohibited by law or national origin. regulation. As I have mentioned, the Commerce In short, while the Board has ample authority Department’s regulations already prohibit banks to take enforcement measures with respect to from taking any steps to further a foreign boy banks that engage in boycott activities that vio cott where the effect would be to discriminate late a clear statutory prohibition, or even a against U.S. citizens on the basis of race, color, regulation adopted by another agency of Gov religion, or national origin. The Equal Credit ernment, our legal staff has serious doubt about Opportunity Act prohibits such discrimination the Board’s ability to take regulatory or coercive against an applicant for credit in any aspect of corrective action with respect to boycott prac a credit transaction. The relevant question tices that are not prohibited by law or regula here—and it is a difficult one—is whether the tion. □ Statement by J. Charles Partee, Member, Board would like to begin with some brief comments of Governors of the Federal Reserve System, on the monetary policy process, based on my before the Subcommittee on Domestic Monetary experience over the years working in this area, Policy of the Committee on Banking, Currency, and then I shall be happy to respond to any and Housing, U.S. House of Representatives, questions the members of the committee may June 10, 1976. have. Although economists differ in their theoretical I am pleased to participate in these hearings on approaches to the channels through which mon monetary policy and its effects on the economy. etary policy works, there is little or no dis During the past year, aided by the implementa agreement in the profession that monetary con tion of House Concurrent Resolution 133, a ditions have a profound impact on the perform constructive dialogue has developed between ance of the economy. One view is that monetary the Board of Governors of the Federal Reserve policy influences economic events primarily by System and the Congress on the course of mon changing the stock of liquidity—particularly, etary policy. I am hopeful that this morning’s the supply of money and near-money substi session, which I understand to be exploratory tutes—and thereby the willingness of consumers and educational in nature, will help further our and businesses to spend and invest out of these mutual understanding of the issues involved. I more, or less, ample balances. Another view Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
510 Federal Reserve Bulletin □ June 1976 is that the influence of monetary policy stems its disposal. Indeed, even the observed pace of mainly from its effects on the money and capital expansion in the various measures of money markets; by affecting the cost and availability supply may reflect short-run variations in the of credit, policy actions will tend to encourage public’s demand for such balances or longer-run more, or less, consumption and investment changes in liquidity preference in response to based on the use of credit. technological innovations in financial manage In fact, these theoretical approaches are not ment, the level and trend of interest rates, and contradictory. They both find that an expansive present and prospective rates of inflation. monetary policy will tend to encourage more It is important also to recognize that the spending while a restrictive policy will tend to impact of changes in monetary policy on various restrain it. But they do approach the process aspects of the economy tend to be reflected with from different vantage points, and the quantita differing time lags. If financial conditions tive measures they suggest we look to in moni tighten, for example, the effects are likely to toring the conduct of monetary policy differ appear much more promptly in securities market sharply. The liquidity approach emphasizes the values—and hence on such wealth-sensitive rates of growth in the various measures of the variables as consumer purchases of durable money supply—Ml9 M2, M3, and still broader goods—than in business fixed-capital outlays, definitions encompassing successively larger which require long lead times from planning to proportions of what might be considered to be fruition. Similarly, the effects of a change in the public’s total stock of liquid financial assets. financial conditions will be more pronounced in The credit approach to monetary policy, on the markets that are heavily dependent on the use other hand, emphasizes changes in the flows of of credit—such as for housing and other large credit through banks, other financial institutions, investments—than in markets where demand is and the securities markets, as well as changes financed mainly by current income flows, such in the terms—including interest rates—on which as for consumer soft goods and services. Ulti such credit is made available. This difference mately, of course, these areas of the economy in measurement technique, I believe, gives rise too will be affected by induced changes in the to much of the confusion and disagreement in income flows themselves. the evaluations of current monetary policy that There is one further timing aspect that re one often encounters in the press and elsewhere. quires especially careful evaluation in the for The fact is that observed monetary measures, mulation and conduct of monetary policy. As regardless of current policy intent, also will I have already noted, the economic influence always reflect the interaction over time of mon of monetary conditions—whether measured in etary policy with underlying conditions in the aggregate or financial market terms—will be to economy. Output, employment, and prices are encourage either faster or slower expansion in affected directly by powerful forces apart from spending, depending on whether such condi monetary policy—such as governmental tax and tions are easing or tightening. But this effect spending policies; the attitudes and spending on the nominal gross national product (GNP) proclivities of businessmen and consumers; the does not distinguish between real activity and wage increases being obtained by labor and the inflation. In my view, a shift in monetary policy pricing policies of business firms; the avail can be expected to affect real activity, as de ability of foodstuffs, energy supplies, and es mands for goods and labor tend to be augmented sential industrial raw materials; and economic or restricted, before it reflects itself in the rate conditions and developing trends abroad. In of inflation. This is because it ordinarily takes these circumstances, whether interest rates are some time for business and labor to adjust wage comparatively high or low or whether the de and price policies to changing market condi mand for credit is strong or weak will depend tions. The time lag involved and the intensity on many factors other than the rate at which of the inflationary effect will depend on the the Federal Reserve is providing reserves to the initial state of the economy and the sensitivity banking system—the basic policy instrument at of expectations. But the inflationary effects will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress 511 sooner or later develop, and this argues strongly are particularly exposed to the influence of many against a policy course that calls for large injec variables external to the scope of monetary tions of liquidity into the economic system as policy, and that there is thus a large risk of a temporary panacea. In theory, it might be specification error. The announcement of inter possible to withdraw the excess liquidity in est rate intentions or expectations could lead time, before the inflationary forces begin im borrowers and lenders to believe that the Federal portantly to work. But in practice this will likely Reserve could—and in practice would—guar be very difficult—if not impossible—to do. antee particular levels of interest rates. But the The complexity of the relationship between System does not have the power to do so, for monetary policy and the economy, and the need interest rates are influenced not only by the to move cautiously in modulating financial con interaction of demands for credit with the avail ditions as economic circumstances and investor able supply of funds but also by the strength and saver attitudes change, indicate clearly the of the economy and the public’s willingness to importance of flexibility in the conduct of mon defer current consumption in order to save for etary policy. House Concurrent Resolution 133 the future. Interest rates are also importantly fully recognizes this need. Under this resolu affected by the expectations of both borrowers tion, the Board reports quarterly on economic and lenders about the rate of inflation. and financial developments, and specifies the If the Federal Reserve did nevertheless at current expectations of the Federal Open Market tempt to maintain selected interest rates at some Committee for the probable growth rate ranges pre-determined level, the effort could well lead in a variety of monetary aggregates, alternately to inappropriate rates of growth in bank reserves before the House and Senate banking commit and the money stock. If interest rates came tees. This procedure is one that permits frequent under upward pressure because of rising de re-evaluation, and appropriate adjustments in mands for funds, for example, System efforts current monetary policy aims to the economy’s to prevent interest rate increases would inevita changing needs, which I believe to be a highly bly generate more rapid monetary expansion, desirable attribute. Quarterly accounting for the thereby feeding new inflationary pressures. If, stewardship of monetary policy also implicitly on the other hand, interest rates came under recognizes the difficulty of projecting economic downward pressure because of slackening busi developments very far into the future with any ness activity and declining demands for funds, high degree of confidence—an assessment with System efforts to prevent the decline in rates which, on the basis of experience, I heartily would inevitably retard monetary growth rates concur. and quite possibly exacerbate the recessionary In the congressional deliberations leading to problem. the present wording of House Concurrent Reso Thus, any serious effort to specify monetary lution 133, and in further discussions since then, policy aims in terms of interest rate intentions a recurring issue has been the question of or expectations could well prove inconsistent whether monetary policy intentions should be with stated objectives for growth rates in the specified in terms of interest rates as well as monetary aggregates. Of course, the central monetary aggregates. The Resolution does of bank might attempt to hold to the interest rate course require that the Board specify 12-month objectives, regardless of the performance of the growth ranges for the various monetary aggre monetary aggregates. But even in this extreme gates, and it provides ample leeway for adjust case the result would very likely be self-defeat ment of such ranges as conditions change. In ing, as lenders and borrowers moved to protect my view, this approach is far preferable to any themselves against the prospect of accelerating attempt to specify interest rate objectives. inflation or deepening recession, foreshadowed While it is theoretically possible to specify by what might be very high or very low mone the course of monetary policy in terms of inter tary growth rates. Needless to say, these effects est rate levels as well as the monetary aggre would be quite perverse from the standpoint of gates, it must be recognized that interest rates economic stabilization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
512 Federal Reserve Bulletin □ June 1976 In closing, I would like to stress that mone tivity and raise costs to the same end. It will tary policy alone cannot be expected to deal with require the efforts of all elements of our complex all of the Nation’s economic problems. Fiscal society if healthy economic growth is to be policy has a powerful influence on the course sustained, unemployment reduced to appro of economic activity, and outsized deficits can priately low levels, and inflation brought under and do contribute to inflation. Monopolistic be control. havior with respect to the setting of wages or Mr. Chairman, at your request, I have tried prices lies outside the scope of monetary policy to be brief in my treatment of a very complicated and strongly influences the character of the topic. It may be that I have raised more ques inflationary bias also. Restrictive trade prac tions than I have answered. But I will be glad tices, whether imposed by private power or to respond to questions that committee members Government regulation, serve to limit produc may have. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
513 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON APRIL 20, 1976 Domestic Policy Directive Preliminary estimates of the Commerce Department indicated that growth in real output of goods and services had picked up to an annual rate of 7.5 per cent in the first quarter—from a rate of 5 per cent in the fourth quarter of 1975—and that the rate of increase in the GNP fixed-weighted price index had slowed substantially. Staff projections for the remaining quarters of this year suggested that growth in output would be moderate and that the rise in prices would be above the relatively low first-quarter pace. In March retail sales had risen sharply—according to the advance report of the Commerce Department—reflecting a strong increase in sales at food stores and widespread gains among other types of stores. The increase in the first quarter as a whole was substan tially larger than that in the fourth quarter of 1975. Industrial production continued to recover in March, owing mainly to increases in output of automobiles, some other consumer goods, business equipment, and durable goods materials. For the second month in a row, output of all durable goods rose more than the over-all index of industrial production. Gains in nonfarm employment were again widespread in March, and they were sizable in durable goods manufacturing industries, in trade, and in services and finance. The increase in total employ ment exceeded that in the civilian labor force, and the unemploy ment rate edged down from 7.6 to 7.5 per cent. Private housing starts declined moderately in March—following a sharp rebound in February to the highest level in 2 years—while permits issued for private housing units remained at about the level of the preceding 2 months. Outstanding mortgage loan commit ments at savings and loan associations had remained strong in February—the latest month for which data were available—and downpayment requirements on mortgage loans had been easing during recent weeks. New orders for nondefense capital goods rose substantially Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
514 Federal Reserve Bulletin □ June 1976 further in February, recovering to about the pace of last October and November. The level of new orders was still relatively low, however, and the backlog of unfilled orders continued to decline. Nonresidential construction activity remained depressed. The index of average hourly earnings for private nonfarm pro duction workers rose at a less rapid pace over the first quarter of 1976 than it had on the average in 1975. In the first quarter the schedule of labor contract negotiations was light and relatively few cost-of-living wage adjustments went into effect. In April, however, a new agreement was reached in one major industry which—if approved by the union membership—would result in substantial increases in wages and other benefits over a 3-year period, including a large increase in wage rates effective April 1. The wholesale price index of all commodities rose slightly in March—following 2 months of decline—as a continuing increase in average prices of industrial commodities was not quite offset by a further decline in prices of farm products and foods. Over the first quarter average wholesale prices of farm products, foods, and fuels declined appreciably, but average wholesale prices of other commodities rose almost as fast as during the second half of 1975. In February the rise in the consumer price index had slowed appreciably further, reflecting additional declines in retail prices of food and energy items. The acceleration of growth in real GNP in the first quarter reflected in large part a shift to accumulation of business invento ries. In addition, personal consumption expenditures rose apprecia bly. On the other hand, State and local government expenditures changed little, and net exports of goods and services fell sharply. Staff projections for the remaining three quarters of 1976 sug gested that personal consumption expenditures would expand at a rate near the average of the past few quarters; that residential construction and business fixed investment would continue to re cover; that State and local government purchases of goods and services would rise at a relatively slow pace; and that business inventory accumulation would be substantial. In recent weeks the average value of the dollar against leading foreign currencies had been relatively steady; the dollar had appre ciated substantially against the British pound and the Italian lira— which had remained under considerable downward pressure—while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOM C 515 it had depreciated som ew hat against m ost other m ajor foreign currencies. In F ebruary, as in January, the U .S . foreign trade balance registered a sizable deficit, in contrast w ith the large surpluses in alm ost all m onths of 1975. R eported net outflow s of private capital rem ained m oderate. T otal loans and investm ents at U .S . com m ercial banks continued to expand in M arch, in large part because banks again added a substantial am ount to their holdings of T reasury securities. B usiness short-term credit dem ands rem ained w eak: O utstanding bank loans to businesses declined for the second consecutive m onth, and the outstanding volum e of com m ercial paper issued by nonfinancial corporations also fell. V grow th in M arch— at an annual rate of 6 2 per cent— w as little changed from that in F ebruary. G row th in M 2 and M 3 also w as m oderate in M arch, com pared w ith relatively high rates in the preceding 2 m onths. A t com m ercial banks, inflow s of tim e and savings deposits other than negotiable C D ’s fell substantially from the exceptional pace of January and F ebruary. Inflow s to nonbank thrift institutions rem ained strong. O n the basis of quarterly-average data, M x grew at an annual rate of 3 per cent in the first quarter, com pared w ith a rate of Vi 2 per cent in the fourth quarter of 1975. H ow ever, M 2 and M 3 V grew at rates of 6 2 and 11 per cent, respectively, in the first quarter, com pared w ith rates of 6 and 9 per cent in the preceding quarter. S ystem open m arket operations since the M arch 1 5-16 m eeting had been guided by the C om m ittee’s decision to seek bank reserve and m oney m arket conditions consistent w ith m oderate grow th in m onetary aggregates over the period ahead. D ata that becam e available w eek by w eek during the inter-m eeting period suggested Mx that in the M arch-A pril period and M 2 w ould grow at rates near the m idpoints of the ranges that had been specified by the C om m ittee. A ccordingly, S ystem operations w ere directed tow ard m aintaining conditions of reserve availability consistent w ith a 3A F ederal funds rate of about 4 per cent— the rate prevailing at the tim e of the M arch m eeting and the m idpoint of the operating range that the C om m ittee had specified for the inter-m eeting period. M arket interest rates in general declined during the inter-m eeting period, as attitudes apparently w ere influenced not only by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
516 Federal Reserve Bulletin □ June 1976 stability of the F ederal funds rate but also by indications of a slow ing in the rate of inflation and by reports of continued sluggish business dem ands for short-term credit. In the short-term area, the outstanding volum e of m oney m arket instrum ents w as reduced. A t the tim e of this m eeting the m arket rate on 3-m onth T reasury bills w as about 4.75 per cent, dow n from about 4.95 per cent on the day before the M arch m eeting. In the interm ediate- and longer-term area, the decline in interest rates occurred even though in M arch the volum e of funds raised by corporations, the T reasury, and State and local governm ents w as exceptionally large. O fferings of new corporate bonds and stocks w as the second highest m onthly am ount on record. Interest rates on new com m itm ents for hom e m ortgages declined slightly in the inter-m eeting period. T he T reasury w as expected to announce the term s of its m id-M ay refunding on A pril 28. O f the m aturing issues, $4.1 billion w ere held by the public. A t this m eeting the C om m ittee review ed its 12-m onth ranges for grow th in the m onetary aggregates. A t the January m eeting the C om m ittee had specified the follow ing ranges for grow th over the period from the fourth quarter of 1975 to the fourth quarter V IV IV IOV of 1976: M l9 4 2 to 2 per cent; M 2, 2 to 2 per cent; and M 3, 9 to 12 per cent. T he associated range for grow th in the bank credit proxy w as 6 to 9 per cent. T he ranges being considered at this m eeting w ere for the period from the first quarter of 1976 to the first quarter of 1977. D uring the discussion of policy, m any m em bers of the C om m it tee observed that the econom ic recovery had been m aking good progress. It w as noted that expansion in output of goods and services in the first quarter had been m ore rapid than had been anticipated and that the expansion in activity during the period ahead m ight w ell exceed the pace suggested by the staff projections. A t the sam e tim e, inflation rem ained a problem , and upw ard price pressures could intensify in the near future. In com m enting on the longer-run grow th ranges, m any m em bers Mx V favored reducing the upper end of the range for by 2 percentage p oint, to 7 per cent. It w as noted that the recovery in econom ic activity had been under w ay for 1 year and that the end of the new period for the grow th ranges w ould fall 2 years after the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Records of Policy Actions of FOM C 517 recession trough. M oreover, the recovery recently had gained strength. A ccordingly, it w as observed that this m ight be an opportune tim e for the C om m ittee to take a sm all step tow ard its longer-range objective of returning grow th in the m onetary aggre gates tow ard rates consistent w ith general price stability. It w as stressed during the discussion that the rate of grow th in Mx needed to accom m odate a good econom ic recovery had been M overestim ated earlier: A lthough 1 grow th in the past tw o quarters had fallen short of the low er lim it of the range that had been specified by the C om m ittee, it obviously had been sufficient to accom m odate a strong recovery. In any case', the proposed upper lim it of 7 per cent exceeded actual grow th during both 1974 and 1975. Som e sentim ent w as expressed for reducing both the low er and Mt the upper end of the range for by Vi percentage point— or even by 1 percentage point— w ith a view to giving m ore em phasis to the C o m m ittee’s longer-run objective of general price stability. It w as also suggested that it w ould be desirable to preserve the w idth of the range adopted by the C om m ittee at its January m eeting— by reducing the low er as w ell as the upper end of the range— in view Mx of the uncertainties associated w ith grow th in in this period of change in the p ub lic’s dem ands for currency and dem and deposits. N o m em ber advocated raising either the low er or the upper lim it of the longer-run range. F or M 2, m any C om m ittee m em bers favored reducing the upper Vi end of the range by percentage point for m ost of the sam e reasons that they favored reducing the upper lim it for M x. H ow ever, m ost Ms m em bers advocated retaining the 9 to 12 per cent range for that had been adopted at the January m eeting. O ver the past year, Mx grow th in M 3 had been faster in relation to grow th in both and M 2 than had been projected, as inflow s of funds into nonbank thrift institutions— w hich typically have been a m ajor source of financing for hom e purchases— had been especially strong. B y retaining the 12 per cent upper lim it for M 3, the C om m ittee w ould allow for the possibility that this relatively strong perform ance w ould persist. A t the conclusion of the discussion, the C om m ittee agreed that Mx the ranges for and M 2 should be narrow ed by reducing the Vi upper end of each by percentage point; thus, the ranges projected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
518 Federal Reserve Bulletin □ June 1976 AV IV w ere 2 to 7 per cent for M x and 2 to 10 per cent for M 2. T he range specified for M 3, as before, w as 9 to 12 per cent. T he associated range for grow th in the bank credit proxy rem ained 6 to 9 per cent. A s at earlier m eetings, it w as agreed that the longer-term ranges, as w ell as the particular list of aggregates for w hich such ranges w ere specified, w ould be subject to review and m odification at subsequent m eetings. It w as also understood that, as a result of short-run factors, grow th rates from m onth to m onth m ight w ell fall outside the ranges contem plated for annual periods. In the discussion of current policy at this m eeting, the C om m ittee Mx took note of a staff analysis suggesting that w as expanding at a rapid rate in A pril, in large part because of a substantial decline in T reasury balances. In addition, it appeared that a som ew hat Mt m ore typical relationship betw een grow th in and grow th in nom inal G N P m ight be in the process of being re-established. It w as expected that in the period ahead grow th of tim e and savings deposits other than negotiable C D ’s w ould rem ain relatively strong. A ccordingly, the staff analysis suggested that, if prevailing m oney m arket conditions w ere m aintained over the 4 w eeks until the next Mx m eeting, grow th in both and M 2 in the A p ril-M ay period w as likely to be high relative to the C om m ittee’s longer-run target ranges. In view of their assessm ent that the pace of econom ic expansion w ould be relatively strong, m ost m em bers favored directing o pera tions in the period im m ediately ahead tow ard restraining grow th of the m onetary aggregates w ithin ranges not very m uch higher than the longer-run ranges agreed upon at this m eeting and indicated that they w ould tolerate som e m odest firm ing in m oney m arket conditions. It w as observed that som e firm ing in m oney m arket conditions in this period w ould reduce the likelihood of excessive m onetary grow th in subsequent m onths. D uring the discussion, the view w as expressed that an apprecia ble tightening in m oney m arket conditions in the period im m edi ately ahead w ould be prem ature, for a num ber of reasons. A lthough the recovery had m ade satisfactory progress, the rate of unem ploy m ent w as still w ell above a desirable level. R esidential construction w as just picking up again, and indications of a recovery in business expenditures for plant and equipm ent w ere only now beginning Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Record of Policy Actions of FOM C 519 to appear. B usiness loan dem ands at banks rem ained w eak. F rom the third quarter of 1975 to the first quarter of this year, m oreover, grow th of M i— and to a lesser extent, grow th of M 2— had been low relative to the C om m ittee’s longer-run ranges. F inally, finan cial m arkets w ere particularly sensitive at this tim e, and any appreciable tightening in m oney m arket conditions could have a substantial effect on short-term interest rates and could adversely affect flow s of tim e and savings deposits at both banks and nonbank thrift institutions. A t the conclusion of the discussion the C om m ittee decided to seek bank reserve and m oney m arket conditions consistent w ith m oderate grow th in m onetary aggregates over the period ahead. M1 Specifically, the m em bers concluded that grow th in and M 2 4Vi over the A pril-M ay period at annual rates w ithin ranges of to 8V2 per cent and 8 to 12 per cent, respectively, w ould be acceptable. T he C om m ittee decided that, in assessing the behavior of the aggregates, approxim ately equal w eight should be given to M x and M 2. T he m em bers agreed that until the next m eeting the w eeklyaverage F ederal funds rate m ight be expected to vary in an orderly AV XA w ay w ithin a range of 2 to 5 per cent. T hey also agreed that, in the conduct of operations, account should be taken of develop m ents in dom estic and international financial m arkets. In accordance w ith the understanding reached at a special m eet ing held on M arch 29, 1976,1 the C om m ittee did not specify an expected range for grow th in reserves available to support private nonbank deposits (R P D ’s). A t the M arch 29 m eeting, the C om m it tee had agreed it should consider the rates of grow th in several reserve m easures— including nonborrow ed reserves, total reserves, and the “ m onetary b ase” (total reserves plus currency)— that w ere likely to be associated w ith grow th in the m onetary aggregates at the rates it specified for 2-m onth periods. It w as contem plated that further experim entation and analysis w ould help the C om m ittee to evaluate the relative usefulness of several possible reserve m easures for operational purposes. xThe March 29 meeting had been called for the purpose of reviewing procedures for formulating and implementing the Committee’s instructions to the Manager of the System Open Market Account at the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
520 Federal Reserve Bulletin □ June 1976 T he follow ing dom estic policy directive w as issued to the F ederal R eserve B ank of N ew Y ork: The information reviewed at this meeting suggests that growth in real output of goods and services picked up in the first quarter. In March retail sales rose sharply further and recovery in industrial production continued. Gains in nonfarm employment were again widespread and the unemployment rate declined from 7.6 to 7.5 per cent. Over the first quarter wholesale prices of farm products, foods, and fuels declined appreciably, but average wholesale prices of other commodities rose almost as rapidly as during the second half of 1975. Over recent months, the advance in the index of average wage rates has moderated somewhat. The average value of the dollar against leading foreign currencies has been relatively steady in recent weeks, while the British pound and the Italian lira have remained under considerable downward pressure. In February the U.S. foreign trade balance registered a second successive monthly deficit; reported net outflows of private capital remained moderate. Monetary aggregates expanded moderately in March. At com mercial banks, inflows of time and savings deposits other than negotiable CD’s fell substantially from the exceptional pace of February; inflows to nonbank thrift institutions remained strong. Since mid-March, both short- and long-term market interest rates have declined. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions that will encourage continued economic recovery, while resisting infla tionary pressures and contributing to a sustainable pattern of inter national transactions. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to 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, Jackson, Kimbrel, Partee, Wallich, and Winn. Votes against this action: None. Absent and not voting: Mr. Holland. 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 a month after the meeting and are subsequently published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
521 Law Department Statutes, regulations, interpretations, and decisions Privacy Act of 1974 sideration for reassignment and promotion within the Board. Effective May 20, 1976, the Board of Governors c. As a data source for management information adopted a notice of the existence and character for production of summary descriptive statistics of systems of records maintained as set forth and analytical studies in support of the function below. for which the records are collected and maintained, or for related personnel management functions or manpower studies; may also be utilized to respond BGFRS—1 to general requests for statistical information System name: FRB—Recruiting and Placement (without personal identification of individuals) Records under the Freedom of Information Act or to locate System location: specific individuals for personnel research of other Board of Qovernors personnel management functions. Federal Reserve System d. To refer, where there is an indication of a 20th and Constitution, N.W. violation or potential violation of law, whether Washington, D.C. 20551 civil, criminal or regulatory in nature, to the ap Categories of individuals covered by the sys propriate agency, whether Federal, State or local, tem: Persons who have applied for employment charged with the responsibility of investigating or with or are employed by the Federal Reserve prosecuting such violation or with enforcing or Board. implementing the statute, or rule, regulation or Categories of records in the system: These order issued pursuant thereto. records may contain information relating to the e. To request information from a Federal, State education, training, employment history and earn or local agency maintaining civil, criminal, or ings, appraisal of past performance, convictions other relevant enforcement or other pertinent in for offenses against the law; results of tests, ap formation, such as licenses, if necessary to obtain praisal of potential, honors, awards of fellowships; relevant information to an agency decision con military service; veteran status, school transcripts, cerning the hiring or retention of an employee, work samples; birth date; social security number; the issuance of a security clearance, the letting shipping authorizations; travel vouchers, offer let of a contract, or the issuance of a license, grant ters and correspondence, reference checks, and or other benefit. home address of persons who have applied for f. To provide information or disclose to a Fed Board employment or are employed by the Federal eral agency, or any other employer or prospective Reserve Board. employer in response to its request, in connection Authority for maintenance of the system: with the hiring or retention of an employee, the Section 11 of the Federal Reserve Act (12 U.S.C. letting of a contract, or issuance of a license, grant Sec. 221 et seq.). or other benefit by the requesting agency to the Routine uses of records maintained in the extent that the information is relevant and neces system, including categories of users and the sary to the requesting agency’s decision on that purposes of such uses: Information in these matter. records may be used: Policies and practices for storing, retrieving, a. To refer applicants for purposes of consid accessing, retaining, and disposing of records eration for placement in positions for which an in the system: applicant has applied and is qualified. This in Storage: Records are maintained on magnetic cludes various government organizations. tapes, punched cards, microfilm, cards, lists, b. To refer current Board employees for con forms, and in folders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
522 Federal Reserve Bulletin □ June 1976 Retrievability: Records are indexed by name, BGFRS—2 combination of birth date, social security account number, and applicable identification number. System name: FRB Personnel Background Inves Safeguards: Access to and use of these records tigation Reports are limited to those persons whose official duties System location: require such access. Board of Governors Retention and disposal: Federal Resere System a. Files of eligibles. Retained for a minimum 20th and Constitution, N.W. of one year after date of determination that no Washington, D.C. 20551 suitable position exists currently. Categories of individuals covered by the sys b. Index cards. Destroyed when no longer tem: Current and former applicants for employ needed. ment by the Board of Governors; Federal Reserve c. Cancelled and ineligible applications. Same System employees considered for access to classi as “a” above. fied information or restricted areas and/or security d. Inquiries and replies regarding availability for determinations as contractors, employees of con appointment. Same as “a” above. tractors, experts, instructors, and consultants to the System manager(s) and address: Board. Individuals who are neither applicants nor Director of Personnel employees of the Board but are or were involved Board of Governors in Board programs under a cooperative assignment Federal Reserve System or similar agreement; individuals who are neither 20th and Constitution, N.W. applicants nor employees of the Board but are or Washington, D.C. 20551 were involved in matters related to the operation Notification procedure: Individuals should of the Board. provide name, date of birth, social security num Categories of records in the system: These ber, identification number (if known), approximate records may contain investigative information re date of record, and type of position with which garding an individual’s character, financial re concerned to the System Manager, address above. sponsibility, conduct, behavior; arrests and con Record access procedures: Individuals should victions for any violations against the law; reports provide name, date of birth, social security num of interviews with former supervisors, co-workers, ber, identification number (if known), approximate associates, educators, etc. ; reports about the qual date of record, and type of position with which ifications of an individual for a specific position; concerned to the System Manager, address above. reports of inquiries with law enforcement agen Record source categories: Information in this cies; former employers; educational institutions system of record either comes from the individual attended; and other information developed from to whom it applies or is derived from information the above. he or she supplied, except reports from medical Authority for maintenance of the system: personnel on physical qualifications and statements Section 11 of the Federal Reserve Act (12 U.S.C. supplied by references. Sec. 221 et seq.). Systems exempted from certain provisions of Routine uses of records maintained in the the Act: Pursuant to subsections (k)(2) and (k)(5) system, including categories of users and the of the Privacy Act and the Board’s regulation purposes of such uses: The contents of these relating thereto (12 CFR 261a), certain portions records may be disclosed to and used as follows: of this system of records may be exempted from a. To assist in determining the suitability for certain provisions of the Act where: (1) such access to classified information. portions represent investigatory material compiled b. To designated officers and employees of other for law enforcement purposes, or (2) such portions agencies and departments of the Federal Govern represent investigatory material compiled solely ment, and the District of Columbia Government, for the purpose of determining suitability, eligi having an interest in the individual for employment bility, or qualifications for Board employment to purposes, in connection with performance of a the extent that disclosure of such portions would service to the Federal Government, under a con reveal the identity of a source who furnished tract or other agreement, including a security information under a promise of confidentiality. clearance or access determination, and a need to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 523 evaluate qualifications, suitability, and loyalty to gation are returned to the originating agency after the United States Government. separation of employment. c. To the intelligence agencies of the Depart System manager(s) and address: ment of Defense, National Security Agency, Cen Assistant Director tral Intelligence Agency, and the Federal Bureau for Contingency Planning of Investigation for use in intelligence activities. Office of Staff Director d. To any source from which information is for Management requested by the Board in the course of an investi Board of Governors gation, to the extent necessary to identify the Federal Reserve System individual, inform the source of the nature and 20th and Constitution, N.W. purpose of the investigation and to identify the Washington, D.C. 20551 type of information requested. Notification procedure: An individual may in e. In the event of an indication of any violation quire as to whether or not the system contains a or potential violation of the law, whether civil, record pertaining to him or to her by addressing criminal, or regulatory in nature, and whether a written request to: arising by statute or by regulation, rule or order Director of Personnel issued pursuant thereto, the relevant records in the Board of Governors system of records may be referred, as a routine Federal Reserve System use, to the appropriate agency, whether Federal, 20th and Constitution, N.W. State, or local, charged with the responsibility of Washington, D.C. 20551 investigating or prosecuting such violation or The request should include the full name and charged with enforcing or implementing the stat date and place of birth of the individual, and any ute, or rule, regulation or order issued pursuant available information regarding the type of record thereto; such referral shall also include, and be involved, and the category of individual under deemed to authorize any and all appropriate and which the inquirer feels he or she fits. necessary uses of such records in a court of law Record access procedures: In response to a and before an administrative board or hearing. written request by an individual to determine f. As a data source for management information whether or not the system contains a record per for production of descriptive statistics and analyti taining to him or to her, the Director will set forth cal studies in support of the function for which the procedure for gaining access to the record. If the records are collected and maintained or for the individual desires to contest the contents of related personnel management functions or man a record, he or she may do so by writing to the: power studies; may also be utilized to respond to Director of Personnel general requests for statistical information (without Board of Governors personal identification of individuals) under the Federal Reserve System Freedom of Information Act or to locate specific 20th and Constitution, N.W. individuals for personnel research or other person Washington, D.C. 20551 nel management functions. Record source categories: Information con Policies and practices for storing, retrieving, tained in the system is obtained from the follow accessing, retaining, and disposing of records ing: in the system: 1. Applications and other personnel and secu Storage: Files are maintained in folders and rity forms furnished by the individual. index cards in steel file cabinets with manipu 2. Investigative material furnished by other lation-proof combination lock. Federal agencies. Notices of personnel actions Retrievability: Records are indexed by name furnished by other Federal agencies. in alphabetical order. 3. By personal investigation or written inquiry Safeguards: Access to and use of these records from sources such as: are limited to those persons whose official duties Employers require access and who have appropriate security Schools clearance. References Retention and disposal: The indexing cards are Neighbors retained indefinitely; while the reports of investi Associates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
524 Federal Reserve Bulletin □ June 1976 Police Departments to satisfactorily perform the duties of the position. Courts 5. Information attesting to an annuitant’s state Credit Bureau of health as required for “insurable interest” sur Medical Records vivor annuity elections. Probation Officials 6. Information relating to handicaps. Prison Officials 7. Information relating to employee partici 4. Newspapers, magazines, periodicals, and pation in the Federal Civilian Employee Alcohol other publications. ism and Drug Abuse Programs. 5. Published hearings of Congressional Com Authority for maintenance of the system: mittees. Section 11 of the Federal Reserve Act (12 U.S.C. Systems exempted from certain provisions of Sec. 221 et seq.). the Act: Pursuant to subsections (k)(2) and (k)(5) Routine uses of records maintained in the of the Privacy Act and the Board’s regulation system, including categories of users and the relating thereto (12 CFR 261a), certain portions purposes of such uses: 1. Information in these of this system of records may be exempted from records is used to: certain provisions of the Act where: (1) such a. determine veteran disability status portions represent investigatory material compiled b. support applications for Disability Retirement for law enforcement purposes, or (2) such portions c. support “insurable interest” survivor annuity represent investigatory material compiled solely elections. for the purpose of determining suitability, eligi d. determine suitability for employment or con bility, or qualifications for Board employment to tinued employment the extent that disclosure of such portions would e. assist in medical counseling. reveal the identity of a source who furnished 2. Information in these records may be pro information under a promise of confidentiality. vided to officials of other Federal agencies respon sible for Federal benefit programs administered by: BGFRS—3 a. Office of Workmen Compensation Programs System name: FRB—Medical Records b. Retired Military Pay Centers System location: c. Veterans Administration Board of Governors d. Social Security Administration Federal Reserve System e. Specific private contractors engaged in pro 20th and Constitution, N.W. viding benefits under Federal contracts. Washington, D.C. 20551 f. Civil Service Commission. Categories of individuals covered by the sys 3. Information in these records is used: tem: 1. Applicants who have been medically ex a. to refer, where there is an indication of a amined for Board employment. violation or potential violation of law, whether 2. Applicants for disability retirement under the civil, criminal or regulatory in nature, to the ap Civil Service Retirement Law or Federal Reserve propriate agency, whether Federal, State, or local, System Retirement Plan. charged with the responsibility of investigating or 3. Current and former Federal Reserve Board prosecuting such violation or charged with enforc employees. ing or implementing the statute or rule, regulation Categories of records in the system: 1. Infor or order issued pursuant thereto. mation relating to an individual’s medical qualifi b. to request information from a Federal, State cations to hold a position with the Board. or local agency maintaining civil, criminal or other 2. Medical information relating to an individ relevant enforcement or other pertinent informa ual’s capability (physical and mental) to satis tion, such as a license, if necessary to obtain factorily perform the duties of the position he or relevant information to the Board’s decision con she holds or held. cerning the hiring or retention of an employee, 3. Information relating to an employee’s par the issuance of a security clearance, the letting ticipation in an occupational health services pro of a contract or the issuance of a grant or other gram. benefit. 4. Information relating to pre-employment or c. to provide information or disclose to a Federal periodic medical examinations to assure that the agency, in response to its request, in connection incumbent is qualified (physically and mentally) with the hiring or retention of an employee, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 525 letting of a contract or issuance of a license, grant count number, if any has been assigned, to the or other benefit by the requesting agency to the System Manager, address above. extent that the information is relevant and neces Record access procedures: Individuals re sary to the requesting agency’s decision on the questing information about this system of records matter. should provide their full name, date of birth, social d. as a data source for management information security number, name of office or division in for production of descriptive statistics and analyti which currently or formerly employed, and annu cal studies in support of the function for which ity account number, if any has been assigned, to the records are collected and maintained, or for the System Manager, address above. related personnel management functions or man Record source categories: power studies; may also be utilized to respond to 1. The individual to whom the record per general requests for information (without personal tains. identification of individuals) under the Freedom of 2. Personal physicians. Information Act or to locate specific individuals 3. Medical institutions. for personnel research or other personnel manage 4. Official records of other Federal agencies. ment functions. 5. Federal Reserve Board Official Personnel Policies and practices for storing, retrieving, Records. accessing, retaining, and disposing of records 6. Federal Reserve System Personnel Man in the system: agement Records Systems. Storage: Records are in folders. BGFRS—4 Retrievability: Records are indexed by name, social security number, identification number, date System name: FRB—General Personnel Records of birth and/or claim number. System location: Safeguards: Access to and use of these records Board of Governors are limited to those persons whose official duties Federal Reserve System require such access. Records are stored in lockable 20th and Constitution, N.W. metal containers. Washington, D.C. 20551 Retention and disposal: Categories of individuals covered by the sys a. Medical certificates and other medical records tem: Current and former employees of and con of examination used to determine an employee’s sultants to the Federal Reserve Board and the fitness for a job 6 years after separation. surviving spouses, and children of former Board b. Miscellaneous medical records, corre employees, if any. spondence, dispensary records and similar papers, Categories of records in the system: This 6 months after separation. system of records consists of a variety of docu c. Applicant’s medical records, 6 years after ments relating to personnel actions of the Board separation. and its determinations made about an individual d. Disability retirement medical files, 6 years for, and during the course of, his employment by after separation. the Board. These records may contain information Systems exempted from certain provisions of about employees and former employees relating the Act: None; however, see special procedures to employment, placement, personnel actions, provided at 12 CFR 261 a.6. performance considerations and evaluations; System manager(s) and address: training and development activities and plans, Director of Personnel background investigations; reference checks; sal Board of Governors ary history and other personnel matters. It also Federal Reserve System includes minority group designator; records relat 20th and Constitution, N.W. ing to benefits and designation of beneficiary; Washington, D.C. 20551 emergency contact, documentation supporting Notification procedure: Individuals requesting personnel actions or decisions made about an in information about this system of records should dividual; awards; employee parking and other in provide their full name, date of birth, social secu formation relating to the status of the individual rity number, name of office or division in which either while considered for employment or while currently or formerly employed, and annuity ac employed by the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
526 Federal Reserve Bulletin □ June 1976 Authority for maintenance of the system: general requests for statistical information (without Sections 10 and 11 of the Federal Reserve Act personal identification of individuals) under the (12 U.S.C. Sec. 221 et seq.). Freedom of Information Act or to locate specific Routine uses of records maintained in the individuals for personnel research or other person system, including categories of users and the nel management functions. purposes of such uses: Information in these j. Determine eligibility for coverage, benefits records is used: due, and payment of benefits under the various a. For purposes of review in connection with benefits programs available to the Board and its appointments, transfers, promotions, reassign staff. ments, training and development needs, adverse k. Transfer information necessary to support a actions, disciplinary actions, and determination of claim for benefits under the various benefit pro qualifications of an individual, and in assisting the grams in operation at the Federal Reserve Board. individual in locating other employment. Policies and practices for storing, retrieving, b. For purposes of making a decision when a accessing, retaining, and disposing of records Board employee or former Board employee is in the system: questioning the validity of a specific document in Storage: Records are maintained in file folders, the individual’s record. magnetic tape, disk, punched cards, index cards c. By the courts to render a decision. and microfilm. d. To provide information to a prospective em Retrievability: Records are indexed by any ployer of a current or former Board employee. combination of name, date of birth, social security e. To provide data for the automated Personnel number, or identification number. records. Safeguards: Records are located in lockable f. To provide information to a Federal agency, metal file cabinets or in metal file cabinets in or any other employer or prospective employer, secured rooms with access limited to those whose in response to its request in connection with the official duties require it. hiring or retention of an employee, the letting of Retention and disposal: The General Personnel a contract, or issuance of a license, grant, or other Record is retained until five years after death or benefit by the requesting agency, to the extent that an individual achieves age 75 where he or she does the information is relevant and necessary to the not separate employment by retirement. requesting agency’s decision on the matter. System manager(s) and address: For current g. To request information from a Federal, State, and former Federal Reserve Board employees: or local agency maintaining civil, criminal, or other relevant enforcement or other pertinent in Director of Personnel formation, such as licenses, if necessary to obtain Board of Governors relevant information or other pertinent information Federal Reserve System to a Board decision concerning the hiring or re 20th and Constitution, N.W. tention of a n employee, the issuance of a security Washington, D.C. 20551 clearance, the letting of contract, or the issuance Notification procedure: Inquiries, including of a grant or other benefit. name, date of birth, and social security number h. To refer, where there is an indication of a should be addressed to the System Manager, violation or potential violation of law, whether address above. civil, criminal or regulatory in nature, to the ap Record access procedures: Current and former propriate agency, whether Federal, State, or local, Federal Reserve Board employees who wish to charged with the responsibility of investigating or gain access to or contest their records should prosecuting such violation or charged with enforc contact the System Manager, address above. ing or implementing the statute, or rule, regula Former Board employees should direct such a tion, or order issued pursuant thereto. request in writing, including their name, date of i. As a data source of management information birth, and social security number. for production of statistical and analytical studies Record source categories: Information in this and reports in support of the function for which system of records comes from the individual to the records are collected and maintained, or for whom it applies or is derived from the information related personnel management functions or man the individual supplied, except information pro power studies; may also be utilized to respond to vided by Board officials. Information is also ob Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 527 tained from the following sources for administra Routine uses of records maintained in the tion of the benefits portion of the system: system, including categories of users and the 1. CSC Personnel Management Records Sys purposes of such uses: The information in the tem records may be used: 2. Personnel records of other Government a. To respond to a request from a Member of agencies Congress regarding the status of an appeal, com 3. Personnel records of Federal Reserve Banks. plaint or grievance. Systems exempted from certain provisions of b. To provide information to the public on the the Act: Pursuant to subsections (k)(2) and (k)(5) decision of an appeal, complaint, or grievance of the Privacy Act and the Board’s regulation required by the Freedom of Information Act. relating thereto (12 CFR 261a), certain portions c. To respond to a Court subpoena and/or to of this system of records may be exempted from refer to a District court in connection with a civil certain provisions of the Act where: (1) such suit. portions represent investigatory material compiled d. To adjudicate an appeal, complaint, or for law enforcement purposes, or (2) such portions grievance. represent investigatory material compiled solely e. As a data source for management information for the purpose of determining suitability, eligi for production of summary descriptive statistics bility, or qualifications for Board employment to and analytical studies in support of the function the extent that disclosure of such portions would for which the records are collected and maintained, reveal the identity of a source who furnished or for related personnel management functions or information under a promise of confidentiality. manpower studies; may also be utilized to respond to general requests for statistical information BGFRS—5 (without personal identification of individuals) System name: FRB—EEO Discrimination Com under the Freedom of Information Act or to locate plaint File specific individuals for personnel research or other System location: personnel management functions. Board of Governors f. To refer, where there is an indication of a Federal Reserve System violation or potential violation of law, whether 20th and Constitution, N.W. civil, or regulatory in nature, to the appropriate Washington, D.C. 20551 agency, whether Federal, State, or local, charged Categories of individuals covered by the sys with the responsibility of investigating or prose tem: Applicants for Board employment, current cuting such violation or charged with enforcing and former Board employees, and annuitants who or implementing the statute, rule, regulation or file a complaint of discrimination or appeal a order issued pursuant thereto. determination made by an official of the Board g. To provide information or disclose to a Fed relating to equal employment opportunities. eral agency, in response to its request, in connec Categories of records in the system: This tion with the hiring or retention of an employee, system of records contains information or docu the letting of a contract, or issuance of a license, ments relating to a complaint, the decision or grant, or other benefit by the requesting agency determination made by the Board affecting an to the extent that the information is relevant and individual under the Board’s EEO regulations and necessary to the requesting agency’s decision on procedures. The records consist of the initial com that matter. plaint or appeal letters or notices to the individual, Policies and practices for storing, retrieving, record of hearings when conducted, materials accessing, retaining, and disposing of records placed into the record to support the decision or in the system: determination, affidavits or statements, testimonies of witnesses, investigative reports, instructions to Storage: These records are maintained in file the Board and/or individual about action to be folders, binders, and index cards. taken to comply with decisions, and related corre Retrievability: These records are indexed by spondence, opinions and recommendations. the names of the individuals on whom they are Authority for maintenance of the system: maintained. Section 11 of the Federal Reserve Act (12 U.S.C. Safeguards: Access to and use of these records Sec. 221 et seq.). are limited to those persons whose official duties Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
528 Federal Reserve Bulletin □ June 1976 require such access. Personnel screening is em tivity and Financial Responsibility Records. ployed to prevent unauthorized disclosure. System location: Retention and disposal: The records are main Board of Governors tained indefinitely. Federal Reserve System System manager(s) and address: 20th and Constitution, N.W. Director of Personnel Washington, D.C. 20551 Board of Governors Categories of individuals covered by the sys Federal Reserve System tem: Current and former Board employees (in 20th and Constitution, N.W. cluding special employees) and annuitants who are Washington, D.C. 20551 involved in an Adverse Action; Board officials Notification procedure: Individuals who have providing annual financial responsibility state filed appeals or grievances are aware of that fact ments; employees who suffer a withholding of a and have been provided a copy of the records. Progress Step Increase; employees who file an They may, however, contact the System Manager, Outside Business Activity application; and those address above. Individuals should provide their employees who have creditors contacting the name, date of birth, and the approximate date of Board relative to credit problems. employment or application, and the kind of action Categories of records in the system: This taken by the Board when making inquiries about system of records may contain information or records. documents relating to a determination made by the Record access procedures: Individuals who Board affecting an individual. The records consist have appealed or filed a grievance about a decision of the letters or notices to the individual, record or determination made by the Board or about of hearings when conducted, materials placed into conditions existing in the Board already have been the record to support the decision or determination, provided a copy of the records. However, to gain affidavits or statements, testimonies of witnesses, access to or contest the records in this system, investigative reports, and related correspondence, individuals should contact the System Manager, opinions and recommendations. Also, copies of address above. Individuals should provide their Financial Responsibility Statements and Outside name, date of birth, approximate date of employ Business Interest applications filed by the em ment or application, and the kind of action taken ployee; and letters from creditors. by the Board when requesting access to, or contest Authority for maintenance of the system: of records. Section 11 of the Federal Reserve Act (12 Record source categories: U.S.C. Sec. 221 et seq.). a. Individual to whom the record pertains Routine uses of records maintained in the b. Board employees system, including categories of users and the c. Affidavits or statements from employee purposes of such uses: The information in the d. Testimonies of witnesses records may be used: e. Official document relating to the appeal, a. To respond to a request from a Member of grievance, or complaints Congress regarding the status of an appeal, com f. Correspondence from specific organization or plaint or grievance. persons b. To provide information to the public on the Systems exempted from certain provisions of decision of an appeal, complaint, or grievance the Act: Pursuant to subsection (k)(2) of the required by the Freedom of Information Act. Privacy Act and the Board’s regulations relating c. To respond to a court subpoena and/or to thereto (12 CFR 261a), certain portions of this refer to a District court in connection with a civil system of records may be exempted from certain suit. provisions of the Act where such portions repre d. To adjudicate an appeal, complaint, or sent investigatory material compiled for law en grievance. forcement purposes. e. As a data source for management information for production of descriptive statistics and analyti cal studies in support of the function for which BGFRS—6 the records are collected and maintained, or for System name: FRB—Adverse Information and related personnel management functions or man Action, Disciplinary, Outside Business Ac power studies; may also be utilized to respond to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 529 general requests for statistical information (without Notification procedure: Individuals should personal identification of individuals) under the provide name, date of birth, social security num Freedom of Information Act or to locate specific ber, identification number (if known), approximate individuals for personnel management functions. date of record, and type of situation with which f. To refer, where there is an indication of a concerned to the System Manager, address above. violation or potential violation of law, whether Record access procedures: Individuals should civil, criminal or regulatory in nature, to the ap provide name, date of birth, social security num propriate agency, whether Federal, State, or local, ber, identification number (if known), approximate charged with the responsibility of investigating or date of record, and type of situation with which prosecuting such violation or charged with enforc concerned to the System Manager, address above. ing or implementing the statute, rule, regulation Record source categories: a. Individual to or order issued pursuant thereto. whom the record pertains g. To request information from a Federal, State b. Board officials or local agency maintaining civil, criminal, or c. Affidavits or statements from employees other relevant enforcement or other pertinent in d. Testimonies of witnesses formation, such as licenses, if necessary to obtain e. Official documents relating to an action, ap relevant information to a Board decision concern peal, grievance, or complaint. ing the hiring or retention of an employee, the f. Correspondence from specific organizations issuance of a security clearance, the letting of a or persons. contract, or the issuance of a grant, or other Systems exempted from certain provisions of benefit. the Act: None. h. To provide information or disclose to a Fed BGFRS—7 eral agency, in response to its request, in connec tion with the hiring or retention of an employee, System name: FRB—Payroll the letting of a contract, or issuance of a license, System location: grant or other benefit by the requesting agency to Board of Governors the extent that the information is relevant and Federal Reserve System necessary to the requesting agency’s decision on 20th and Constitution, N.W. that matter. Washington, D.C. 20551 i. To identify or determine conflict of interest Categories of individuals covered by the sys situations or potential conflict of interest. tem: Past and present employees and members of j. To advise an employee of potential problems. the Board. k. To administer various aspects of established Categories of records in the system: Varied personnel management programs. payroll records including payment vouchers, com Storage: These records are maintained in file prehensive listing of employees, requests for de folders, binders, index cards, magnetic tape and ductions, tax forms, W-2 forms, overtime re disk. quests, leave data, workmen’s compensation data. Retrievability: These records are indexed by Authority for maintenance of the system: the names of the individuals on whom they are Section 11 of the Federal Reserve Act (12 U.S.C. maintained. Sec 221 et seq.). Safeguards: Access to an use of these records Routine uses of records maintained in the are limited to those persons who official duties system, including categories of users and the require such access. Personnel screening is em purposes of such uses: Used in the preparation ployed to prevent unauthorized disclosure. of Board payroll, as input to several management Retention and disposal: The records are main reports and, from time to time, input to other tained indefinitely after cessation of employment contributing programs and as input to Board stud unless deemed unnecessary, and thus destroyed. ies, analyses, and reports. System manager(s) and address: Policies and practices for storing, retrieving, Director of Personnel accessing, retaining, and disposing of records Board of Governors in the system: Federal Reserve System Storage: On tape, disk, punched cards, index 20th and Constitution, N.W. cards, folders and document files. Washington, D.C. 20551 Retrievability: Filed by name, social security Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
530 Federal Reserve Bulletin □ June 1976 number, and employee number. system, including categories of users and the Safeguards: Access is restricted to authorized purposes of such uses: Used as a data source for personnel only. Records are stored in cabinets and management information and payment of leave, a safe. Access to computer records is by “limited for production of statistics and analytical studies access” employees. in support of the function for which records are Retention and disposal: Various: minimum of collected and maintained or for related personnel one year from date of annual audit; maximum of management functions and manpower studies. indefinite. Policies and practices for storing, retrieving, System manager(s) and address: accessing, retaining, and disposing of records Director of Personnel in the system: Board of Governors Storage: Punched card, tape, disk, index card, Federal Reserve System folder, and print out. 20th and Constitution, N.W. Retrievability: Filed by date, but may be filed Washington, D.C. 20551 by name or identifying number. Notification procedure: Current and former Safeguards: Stored in locked metal file cabi employees who wish to gain access or contest their nets, other records stored in secured limited access records should contact System Manager, address computer facilities. above. Individuals should provide name, date of Retention and disposal: Detailed information birth, social security number, identification num destroyed after two years. Summary data is a part ber (if known). of permanent official personnel file. Record access procedures: Current and former System manager(s) and address: employees who wish to gain access or contest their Division of Personnel records should contact System Manager, address, Board of Governors above. Individuals should provide name, date of Federal Reserve System birth, social security number, and identification 20th and Constitution, N.W. number (if known). Washington, D.C. 20551 Record source categories: Internal personnel Notification procedure: Individuals wishing to forms, Federal, State, and local tax forms, em know whether information about them is main ployee authorizations and directive forms, insur tained in this system of records should address ance forms, leave and overtime reports, Federal inquiries to the System Manager above. Former and State garnishment forms. Board employees should direct such a request in Systems exempted from certain provisions of writing, including their name, date of birth, and the Act: None. social security number. Record access procedures: Individuals wishing BGFRS—8 to gain access or contest their records should System name: FRB—Leave Records contact the System Manager, address above. System location: Former Board employees should direct such a Board of Governors request in writing, including their name, date of Federal Reserve System birth, and social security number. 20th and Constitution, N.W. Record source categories: Records, files and Washington, D.C. 20551 forms of the Board, information provided by the Categories of individuals covered by the sys employee and previous Federal Government em tem: Present employees, former employees for a ployers. period of three years following their separation Systems exempted from certain provisions of from the Board. the Act: None. Categories of records in the system: Contains BGFRS—9 timekeeper records, leave cards, payroll notifica tions, supporting memorandum, periodic leave System name: FRB—Consultant File statements, and creditable service documentation. System location: Authority for maintenance of the system: Board of Governors Section 11 of the Federal Reserve Act (12 U.S.C. Federal Reserve System Sec. 221 et seq.). 20th and Constitution, N.W. Routine uses of records maintained in the Washington, D.C. 20551 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 531 Categories of individuals covered by the sys name, date of birth, and the approximate date of tem: Individuals providing consulting services to employment or application, and the kind of action the Board in accordance with a formal agreement. taken by the Board when making inquiries about Categories of records in the system: Docu records. ments, letters, memorandum of understanding re Record access procedures: Individuals who lating to agreement, rates of pay, payment records, have appealed or filed a grievance about a decision vouchers, invoices, and selection; negotiations, or determination made by the Board or about implementation, scope and performance of work. conditions existing in the Board already have been Additional information may be found on re provided a copy of the records. However, to gain employed annuitants in the FRB-General Person access or contest the records in this system, indi nel Records. viduals should contact the System Manager, Authority for maintenance of the system: address above. Individuals should provide their Section 11 of the Federal Reserve Act (12 U.S.C. name, date of birth, approximate date of employ Sec. 221 et seq.). ment or application, and the kind of action taken Routine uses of records maintained in the by the Board when requesting access to, or contest system, including categories of users and the of records. purposes of such uses: Routine uses include, but Record source categories: Information in this are not restricted to, selection, monitoring, evalu system of records is obtained from the individual ation and control, audit and analysis, routine to whom it applies or is derived from information management activity, and statistical use without supplied by the individual, except information individual indentification; verification and confir provided by Board staff, and for re-employed an mation; and referral when used as a basis for nuitants where the inactive General Personnel File prospective employment by other than the Board; is activated. to provide information or disclose to a Federal Systems exempted from certain provisions of agency, or any other employer or prospective the Act: Pursuant to subsections (k)(2) and (k)(5) employer, in response to its request, in connection of the Privacy Act and the Board’s regulation with the hiring or retention of an employee, the relating thereto (12 CFR 261a), certain portions letting of a contract, or issuance of a license, grant, of this system of records may be exempted from or other benefit by the requesting agency, to the certain provisions of the Act where: (1) such extent that the information is relevant and neces portions represent investigatory material compiled sary to the requesting agency’s decision on the for law enforcement purposes, or (2) such portions matter. represent investigatory material compiled solely Policies and practices for storing, retrieving, for the purpose of determining suitability, eligi accessing, retaining, and disposing of records bility, or qualifications for Board employment to in the system: the extent that disclosure of such portions would Storage: Folder, punched card, tape, disk and reveal the identity of a source who furnished index card. information under a promise of confidentiality. Retrievability: File by name, and cross index by voucher number and date, or identifying num BGFRS—10 ber. Safeguards: Stored in secured area. System name: FRB—General File on Board Retention and disposal: Retained indefinitely. Members System manager(s) and address: System location: Director of Personnel Board of Governors Board of Governors Federal Reserve System Federal Reserve System 20th and Constitution, N.W. 20th and Constitution, N.W. Washington, D.C. 20551 Washington, D.C. 20551 Categories of individuals covered by the sys Notification procedure: Individuals who have tem: Past and present members of the Board of filed appeals or grievances are aware of that fact Governors. and have been provided a copy of the records. Categories of records in the system: Biogra They may, however, contact the System Manager, phies of past and present members of the Board, address, above. Individuals should provide their oaths of office, and miscellaneous correspondence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
532 Federal Reserve Bulletin □ June 1976 relating to such Governors. Categories of individuals covered by the sys Authority for maintenance of the system: tem: Correspondents with the Board and System Section 10 of the Federal Reserve Act (12 U.S.C. Personnel. Sec. 221 et seq.). Categories of records in the system: In Routine uses of records maintained in the coming and outgoing correspondence concerning system, including categories of users and the Board business. Records relating to System Per purposes of such uses: Used for background sonnel in official capacities such as instructors, information to determine qualifications for ap consultants, and Board representatives to various pointment and reappointment, for compiling in committees, conferences, etc. formation for news releases and other publications, Authority for maintenance of the system: and for recording correspondence concerning the Sections 10 and 11 of the Federal Reserve Act Governors. (12 U.S.C. Sec. 221 et seq.). Policies and practices for storing, retrieving, Routine uses of records maintained in the accessing, retaining, and disposing of records system, including categories of users and the in the system: purposes of such uses: Used for reference pur Storage: Paper records. poses in preparing responses to inquiries from the Retrievability: Indexed by name. public and used in recording official duties of Safeguards: Locked in diebold power file. System Personnel. Access limited to Board staff on a restricted basis. Retention and disposal: Retained indefinitely. Policies and practices for storing, retrieving, System manager(s) and address: accessing, retaining, and disposing of records Secretary of the Board in the system: Board of Governors Storage: Paper records. Federal Reserve System Retrievability: Indexed by name. 20th and Constitution, N.W. Safeguards: Locked in diebold power file. Washington, D.C. 20551 Access limited to Board staff on a restricted basis. Notification procedures: Same as System Retention and disposal: Retained indefinitely. Manager, address above. System manager(s) and address: Record access procedures: Same as System Secretary of the Board Manager, address above. Board of Governors Record source categories: Generated by indi Federal Reserve System viduals’ incoming correspondence and staff re 20th and Constitution, N.W. sponse thereto. Washington, D.C. 20551 Systems exempted from certain provisions of Notification procedure: System Manager, the Act: Pursuant to subsection (k)(5) of the address above. Privacy Act and the Board’s regulations relating thereto (12 CFR 261a), certain portions of this Record access procedures: System Manager, system of records may be exempted from certain address above. provisions of the Act where such portions repre Record source categories: Generated by indi sent investigatory material compiled solely for the viduals’ incoming correspondence and staff re purpose of determining suitability, eligibility, or sponse thereto. qualifications for Board employment to the extent Systems exempted from certain provisions of that disclosure of such portions would reveal the the Act: Pursuant to subsection (k)(5) of the identity of a source who furnished information Privacy Act and the Board’s regulations relating under a promise of confidentiality. thereto (12 CFR 261a), certain portions of this system of records may be exempted from certain BGFRS—11 provisions of the Act where such portions repre System name: FRB—Official General Files sent investigatory material compiled solely for the System location: purpose of determining suitability, eligibility, or Board of Governors qualifications for Board employment to the extent Federal Reserve System that disclosure of such portions would reveal the 20th and Constitution, N.W. identity of a source who furnished information Washington, D.C. 20551 under a promise of confidentiality. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 533 BGFRS—12 civil, criminal, or regulatory in nature, to the appropriate agency, whether Federal, State, or System name: FRB—Biographical File of Federal local, charged with the responsibility of investi Reserve Personnel gating or prosecuting such violation or charged with enforcing or implementing the statute, rule, System location: regulation, or order issued pursuant thereto. Board of Governors g. As a data source for management information Federal Reserve System for production of summary descriptive statistics 20th and Constitution, N.W. and analytical studies in support of the function Washington, D.C. 20551 for which the records are collected and maintained, Categories of individuals covered by the sys or for related personnel management functions or tem: Current and former Federal Reserve System manpower studies ; may also be utilized to respond officers, and their staff. to general requests for information (without per Categories of records in the system: This sonal identification of individuals) under the Free system consists of a variety of records relating to dom of Information Act or to locate specific indi personnel actions and determinations made about viduals for personnel research or other personnel an individual while employed in the Federal Re management functions. serve System. These records, contain information Policies and practices for storing, retrieving, about an individual relating to birth date; educa accessing, retaining, and disposing of records tion; veteran status; tenure; handicap; past and in the system: present salaries, grades, and position titles; per sonnel actions, including, but not limited to, ap Storage: Records are maintained in file folders, pointment, reassignment, demotion, detail, pro magnetic tape, punched cards and disk. motion, transfer, and separation; photograph, Retrievability: Records are indexed by combi awards; and other information relating to the status nation of name or identification number. of the individual. Safeguards: Records are located in lockable Authority for maintenance of the system: metal file cabinets or in metal file cabinets in Sections 4, 11 and 22 of the Federal Reserve Act secured rooms with access limited to those whose (12 U.S.C. Sec. 221 et seq.). official duties require access. Routine uses of records maintained in the Retention and disposal: Retained indefinitely. system, including categories of users and the System manager(s) and address: purposes of such uses: Information in these Director of Personnel records may be used: Board of Governors a. By Federal Reserve System officials for pur Federal Reserve System poses of review in connection with appointments, 20th and Constitution, N.W. transfers, promotions, reassignments, adverse ac Washington, D.C. 20551 tions, disciplinary actions, and determination of Notification procedure: Inquiries, including qualifications of an individual. name, date of birth, and social security numbers b. By the Board of Governors for purposes of should be addressed to the System Manager, making a decision when a listed employee or address above. former listed employee is questioning the validity Record access procedures: Current and former of a specific document in the individual’s record. System employees who wish to gain access to and c. By the courts to render a decision when the contest their records, should direct such a request Board has refused to release to a current or former in writing, including their name, date of birth, and System employee a record under the Freedom of social security number to the System Manager, Information Act. address above. d. To publish name and title data for the direc Record source categories: Information in this tory of officers of Federal Reserve Banks. system of records comes from either the individual e. To provide reports to the Congress, agencies, to whom it applies, extracted from documents he and the public on characteristics of the System supplied, or data provided by Federal Reserve work force. System officials and employees. f. To refer, where there is an indication of a Systems exempted from certain provisions of violation or potential violation of law, whether the Act: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
534 Federal Reserve Bulletin □ June 1976 BGFRS—13 may be exempted from certain provisions of the Act where such portions represent investigatory System name: FRB—General File of Examiners material compiled solely for the purpose of deter at Federal Reserve Banks. mining suitability, eligibility, or qualifications for System location: Board employment to the extent that disclosure Board of Governors of such portions would reveal the identity of a Federal Reserve System source who furnished information under a promise 20th and Constitution, N.W. of confidentiality. Washington, D.C. 20551 BGFRS—14 Categories of individuals covered by the sys tem: Past and present examiners and assistant System name: FRB—General File of Federal Re examiners at Federal Reserve Banks. serve Bank and Branch Directors. Categories of records in the system: Brief System location: biographies of past and present examiners and Board of Governors assistant examiners, oaths of office, and miscel Federal Reserve System laneous correspondence. 20th and Constitution, N.W. Authority for maintenance of the system: Washington, D.C. 20551 Section 11 of the Federal Reserve Act (12 U.S.C. Categories of individuals covered by the sys Sec. 221 et seq.). tem: Past and present Federal Reserve Bank and Routine uses of records maintained in the Branch Directors. system, including categories of users and the Categories of records in the system: Biogra purposes of such uses: Used as background in phies of past and present Federal Reserve Bank formation for determining qualifications for ap and Branch Directors, oaths of office, resignations, pointment, reappointment, etc.; for compiling in and miscellaneous correspondence. formation for news releases and other publications, Authority for maintenance of the system: and recording correspondence concerning such Sections 3, 4 and 11 of the Federal Reserve Act persons. (12 U.S.C. Sec. 221 et seq.). Policies and practices for storing, accessing, Routine uses of records maintained in the retaining, and disposing of records in the sys system, including categories of users and the tem: purposes of such uses: Used as background in Storage: Paper records. formation for determining qualifications for ap Retrievability: Indexed by name. pointment, reappointment, etc,; for compiling in Safeguards: Locked in diebold power file. formation for news releases and other publications, Access limited to Board staff on a restricted basis. and recording correspondence concerning such Retention and disposal: Indefinite. persons. System manager(s) and address: Policies and practices for storing, retrieving, Secretary of the Board accessing, retaining, and disposing of records Board of Governors in the system: Federal Reserve System Storage: Paper records. 20th and Constitution, N.W. Retrievability: Indexed by name. Washington, D.C. 20551 Safeguards: Locked in diebold power file. Notification procedure: System Manager, as Access limited to Board staff on a restricted basis. indicated above. Retention and disposal: Retained indefinitely. Record access procedures: Same as “notifica System manager(s) and address: tion” above. Secretary of the Board Record source categories: Individuals them Board of Governors selves, references such as “Who’s Who” and Federal Reserve System miscellaneous correspondence from System per 20th and Constitution, N.W. sonnel and others. Washington, D.C. 20551 Systems exempted from certain provisions of Notification procedure: Same as System Man the Act: Pursuant to subsection (k)(5) of the ager, address above. Privacy Act and the Board’s regulations relating Record access procedures: Same as System thereto, certain portions of this system of records Manager, address above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 535 Record source categories: Generated by indi System manager(s) and address: viduals’ incoming correspondence and staff re Secretary of the Board sponse thereto. Board of Governors Systems exempted from certain provisions of Federal Reserve System the Act: Pursuant to subsection (k)(5) of the 20th and Constitution, N.W. Privacy Act and the Board’s regulations relating Washington, D.C. 20551 thereto, certain portions of this system of records Notification procedure: Same as System Man may be exempted from certain provisions of the ager, address above. Act where such portions represent investigatory Record access procedures: Same as System material compiled solely for the purpose of deter Manager, address above. mining suitability, eligibility, or qualifications for Record source categories: Generated by indi Board employment to the extent that disclosure viduals’ incoming correspondence and staff re of such portions would reveal the identity of a sponse thereto. source who furnished information under a promise Systems exempted from certain provisions of of confidentiality. the Act: Pursuant to subsection (k)(5) of the Privacy Act and the Board’s regulations relating thereto (12 CFR 261a), certain portions of this BGFRS—15 system of records may be exempted from certain System name: FRB—General Files of Federal provisions of the Act where such portions repre Reserve Agents, Alternates and Repre sent investigatory material compiled solely for the sentatives at Federal Reserve Banks. purpose of determining suitability, eligibility, or System location: qualifications for Board employment to the extent Board of Governors that disclosure of such portions would reveal the Federal Reserve System identity of a source who furnished information 20th and Constitution, N.W. under a promise of confidentiality. Washington, D.C. 20551 Categories of individuals covered by the sys BGFRS—16 tem: Past and present Federal Reserve Agents, Alternates and Representatives at Federal Reserve System name: FRB—Regulation G Reports Banks. System location: Categories of records in the system: Biogra Board of Governors phies of past and present examiners, oaths of office Federal Reserve System and miscellaneous correspondence relating to such 20th and Constitution, N.W. persons. Washington, D.C. 20551 Authority for maintenance of the system: Categories of individuals covered by the sys Sections 20 and 21 of the Federal Reserve Act tem: Individuals other than banks, brokers and (12 U.S.C. Sec. 221 et seq.). dealers who extend credit in specified amounts Routine uses of records maintained in the secured by margin securities. system, including categories of users and the Categories of records in the system: Reports purposes of such uses: Used as background in filed by persons registered pursuant to Regulation formation for determining qualifications for ap G. pointment, reappointment, etc.; for completing Authority for maintenance of the system: information for news releases and other corre Sections 7, 17, and 23 of the Securities Exchange spondence; and recording correspondence con Act of 1934 and Regulation G (12 CFR 207). cerning such persons. Routine uses of records maintained in the Policies and practices for storing, retrieving, system, including categories of users and the accessing, retaining, and disposing of records purposes of such uses: Aid the Federal Reserve in the system: System in securing compliance with Regulation G, Storage: Paper records. assist registrants regarding interpretation, and Retrievability: Indexed by name. where this system indicates a violation or potential Safeguards: Locked in diebold power file. violation of the law, whether civil, criminal or Access limited to Board staff on a restricted basis. regulatory in nature, and whether arising by gen Retention and disposal: Retained indefinitely. eral statute or particular program statute, or by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
536 Federal Reserve Bulletin □ June 1976 regulation, rule or order issued pursuant thereto, Effective May 10, 1976, paragraph (c) of sec the revelant records in the system of records may tion 265.2 is amended by adding subparagraph be referred, as a routine use, to the appropriate (18) as follows: agency, whether Federal, State, local, or foreign, Section 265.2— Specific charged with the responsibility of investigating or Functions D elegated to B oard prosecuting such violation, or charged with en E m ployees and to Federal R eserve B anks forcing or implementing the statute, or rule, regu lation or order issued pursuant thereto. Policies and practices for storing, retrieving, accessing, retaining, and disposing of records (c) The Director of the Division of Banking in the system: Supervision and Regulation (or in his absence Storage: Paper forms and files. the Acting Director) is authorized: Retrievability: Indexed by name. Safeguards: Retained in locked metal file cabi nets. Access to Board staff on restricted basis. (18) Under the provisions of section Retention and disposal: Retained indefinitely. 17A(c)(3)(C) of the Securities Exchange Act of System manager(s) and address: 1934, as amended, (15 U.S.C. § 78q- 1(c)(3)(C)) Director, Office of to withdraw or cancel the transfer agent regis Saver and Consumer Affairs tration of a member State bank or a subsidiary Board of Governors thereof, a bank holding company, or a subsidiary Federal Reserve System bank of a bank holding company that is a bank Washington, D.C. 20551 as defined in section 3(a)(6) of the Act (other than Notification procedure: a bank specified in clause (i) or (iii) of section Secretary of the Board 3(a)(34)(B) of the Act (15 U.S.C. § Board of Governors 78c(c)(a)(34)(B)) that has filed a written notice of Federal Reserve System withdrawal with the Board or upon a finding that 20th and Constitution, N.W. such transfer agent is no longer in existence or Washington, D.C. 20551 has ceased to do business as a transfer agent. Record access procedures: Same as System Manager, address above. Record source categories: Reports and forms Federal Open Market Committee filed by individuals to whom records pertain. Systems exempted from certain provisions of Rules Regarding the Act: Pursuant to subsection (k)(2) of the Availability of Information Privacy Act and the Board’s regulations relating thereto (12 CFR 261a) certain portions of this At its meeting on May 18, 1976 the Federal system of records may be exempted from certain Open Market Committee decided to reduce the provisions of the Act where such portions repre delay in publication of records of policy actions sent investigatory material compiled for law en taken at its monthly meetings. Incident to this forcement purposes. action, the Committee amended § 271.5(a) of its Rules Regarding Availability of Information by deleting the second sentence. Effective May 18, 1976, section 271.5(a) is Rules Regarding amended to read as follows: Delegation of Authority Section 271.5— D eferm ent of The Board of Governors has amended its Rules A vailability of C ertain Inform ation Regarding Delegation of Authority to delegate to the Director of the Division of Banking Supervi (a) Deferred availability of information.—In sion and Regulation the authority under the provi some instances, certain types of information of the sions of section 17A(c)(3)(C) of the Securities Committee are not published in the Federal Regis Exchange Act of 1934, as amended, to withdraw ter or made available for public inspection or or cancel by order certain transfer agent regis copying until after such period of time as the tration. Committee may determine to be reasonably nec Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 537 essary to avoid the effects described in paragraph enactment of the legislation would have had the (b) of this section or as may otherwise be necessary effect of nullifying the proposed public benefits to prevent impairment of the effective discharge unless the applicant were to commit to lower its of the Committee’s statutory responsibilities. rates, concurrently, so as to assure the continuation of meaningful public benefits. Accordingly, the Board’s Order granting the application made clear that the applicant’s obligation to offer lower rates Interpretation of Regulation Y was a continuing one. Acting as underwriter (reinsurer) for credit life While the Board does assure that such a public and credit accident and health (disability) insur benefit exists at the time of approval of a credit ance—assuring continuing public benefits. Under insurance underwriting application, the Board is the provisions of Section 4(c)(8) of the Bank also concerned that this public benefit be main Holding Company Act of 1956, as amended tained on a continuing basis, not only by new [“Act”] (12 U.S.C. §1843), a bank holding com applicants, but by those applicants who have pany may acquire shares of any company the heretofore received approval of such applications. activities of which the Board after due notice and In the event that a State’s insurance regulations opportunity for hearing has determined (by order were amended to provide for new premium rate or regulation) to be so closely related to banking standards that would establish new, and possibly or managing or controlling banks as to be a proper lower, prima facie rates, it is possible that the incident thereto. In making its determination, the public benefit involved in a previously approved Board is required to consider whether the per application could be nullified unless the bank formance of a particular activity by an affiliate holding company, in light of such new premium of a holding company can reasonably be expected rate standards, continued to offer this insurance to produce benefits to the public that outweigh to their customers at reduced rates. The Board possible adverse effects. believes that without such a continuing public On December 11, 1972, pursuant to this au benefit, a bank holding company’s continuing to thority, the Board amended its Regulation Y, by engage in the activity of underwriting credit insur adding section 225.4(a)(10), to authorize as a ance would be contrary to the requirements of the permissible activity for bank holding companies Act. In order to avoid such a situation, the Board the underwriting of credit life insurance and credit has interpreted section 4(c)(8) of the Act and accident and health insurance that is directly re section 225.4(a)(10) of Regulation Y and its ac lated to extensions of credit by the bank holding companying footnote as imposing a continuing company system. In authorizing this activity, the obligation upon all bank holding companies au Board, in a footnote to section 225.4(a)(10) of thorized to underwrite such credit insurance pur Regulation Y (fn. 7), stated: suant to section 4(c)(8) of the Act and the Board’s To assure that engaging in the underwriting of Regulation Y, to maintain a public benefit such credit life and credit accident and health insurance as was anticipated and considered by the Board can reasonably be expected to be in the public at the time of the original approval of each appli interest, the Board will only approve applications cation, and was envisioned by the Board when in which an applicant demonstrates that approval will benefit the consumer or result in other public this activity was adopted as a permissible non benefits. Normally such a showing would be made banking activity under section 4(c)(8) of the Act.1 by a projected reduction in rates or increase in policy benefits due to bank holding company per formance of this service. 1 It should be noted that every Board Order granting approval In the course of considering a recent application, under section 4(c)(8) of the Act contains the following para the Board became aware of pending legislation in graph: This determination is subject ... to the Board’s authority the applicant’s State that, if adopted, would pro to require such modification or termination of the activities vide new, lower premium rate standards applicable of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the to the sale of such credit-related insurance. Be provisions and purposes of the Act and the Board’s cause the applicant had already proposed, as one regulations and orders issued thereunder, or to prevent of the public benefits of its application, that it evasion thereof. The Board believes that, even apart from this Interpretation, would offer premium rates below the then-existing this language preserves the authority of the Board to require State rates generally being charged by others, the revisions contemplated in this Interpretation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
538 Federal Reserve Bulletin □ June 1976 Bank Holding Company and Bank M erger Orders Issued by the Board of Governors Orders Under Section 3 relevant area is especially attractive for de novo of Bank Holding Company Act entry. Accordingly, on the basis of the facts of record, the Board concludes that competitive con First B anc G roup, Inc., siderations are consistent with approval of the C reve C oeur, M issouri application. Order Approving Acquisition of Bank The financial condition, managerial resources, and future prospects of Applicant and its present First Banc Group, Inc., Creve Coeur, Missouri, and proposed subsidiaries are regarded as gener a bank holding company within the meaning of ally satisfactory and consistent with approval even the Bank Holding Company Act, has applied for though Applicant will incur debt as a result of this the Board’s approval under § 3(a)(3) of the Act acquisition. It appears that the proposed affiliation (12 U.S.C. § 1842(a)(3)) to acquire 50 per cent of Bank with Applicant is likely to result in an or more of the voting shares of American State expansion of the services presently offered by Bank of Flat River, Flat River, Missouri Bank. Considerations relating to the convenience (“Bank”). and needs of the community to be served, there Notice of the application, affording opportunity fore, lend some weight toward approval of the for interested persons to submit comments and application. It is the Board’s judgment that the views, has been given in accordance with § 3(b) proposed acquisition would be in the public inter of the Act. The time for filing comments and views est and that the application should be approved. has expired, and the Board has considered the On the basis of the record in the case,3 the application and all comments received in light of application is approved for the reasons sum the factors set forth in § 3(c) of the Act (12 U.S.C. marized above. The transaction shall not be made § 1842(c)). (a) before the thirtieth calendar day following the Applicant, the eighteenth largest banking orga effective date of this Order or (b) later than three nization in Missouri, controls five banks with months after the effective date of this Order, unless aggregate deposits of $92.0 million, representing such period is extended for good cause by the approximately .57 per cent of the total deposits Board, or by the Federal Reserve Bank of St. in commercial banks in the State.1 Acquisition of Louis pursuant to delegated authority. Bank (deposits of $16.0 million) would increase By order of the Board of Governors, effective Applicant’s share of commercial bank deposits in May 3, 1976. Missouri by . 1 per cent and would have no appre ciable effect upon the concentration of banking Voting for this action: Vice Chairman Gardner and Governors Holland, Wallich, Coldwell, and Partee. resources in Missouri. Absent and not voting: Chairman Burns and Governor Bank, the third largest of seven banks in the Jackson. relevant market,2 holds approximately 17.1 per (Signed) J. P. Garbarini, cent of total market deposits. Applicant has no [seal] Assistant Secretary of the Board. banking office in the relevant market, and the nearest office of any of Applicant’s subsidiary banks to any office of Bank is approximately 42 3In its consideration of the subject application, the Board miles. also considered the comments submitted on behalf of a share holder of Bank. Having examined such submissions, the Board No meaningful competition presently exists be is of the view that, based upon the entire record, the arguments tween any of Applicant’s subsidiary banks and put forth by the protestant are not sufficient to warrant denial of the application. Bank, and it appears unlikely that such competi tion would develop in the future in view of the distances involved. Moreover, the population and economic characteristics do not indicate that the C entral W isconsin B ankshares, Inc., W ausau, W isconsin 1 Banking data are as of June 30, 1975. Order Denying Acquisition of Bank 2The relevant banking market is approximated by St. Fran cois County plus the town of Fredericktown in northern Mad Central Wisconsin Bankshares, Inc., Wausau, ison County. Wisconsin, a bank holding company within the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 539 meaning of the Bank Holding Company Act, has tion would increase Applicant’s share of the total applied for the Board’s approval under § 3(a)(3) commercial bank deposits in this market to ap of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 proximately 55 per cent, and would result in a per cent or more of the voting shares of Central further increase in the concentration of banking National Bank of Wausau, Wausau, Wisconsin resources in the market. The Board regards this (“Bank”). as an adverse factor lending weight toward denied Notice of the application, affording opportunity of the proposal. for interested persons to submit comments and The Board notes that there already exists com views, has been given in accordance with § 3(b) mon ownership and management between Appli of the Act. The time for filing comments and views cant and Bank,3 and Applicant aruges that this fact has expired, and the Board has considered the mitigates to some extent the amount of existing application and all comments received, including competition that would be eliminated between those submitted by Peoples State Bank, Wausau, Bank and Applicant’s subsidiary banks if this Wisconsin, in light of the factors set forth in § application were approved. However, the compet 3(c) of the Act (12 U.S.C. 1842(c)). itive situation that gave rise to the Board’s pre Applicant, the eleventh largest commercial vious denial of Applicant’s proposal to acquire banking organization in Wisconsin, controls two Bank de novo in 1966 has not changed signifi subsidiary banks with aggregate deposits of ap cantly over the years, and the structure of the proximately $132 million, representing 0.9 per Wausau banking market has not been altered so cent of the total deposits in commercial banks in as to warrant a different conclusion with respect the State.1 Applicant’s acquisition of Bank would to the adverse effects. Applicant remains the larg increase Applicant’s share of State deposits by est banking organization in the market, and the 0.04 per cent and would not result in a significant Board believes that approval of this application increase in the concentration of banking resources would virtually foreclose the possibility that Bank in Wisconsin. However, as discussed below, con may eventually become independent of Applicant summation of the proposal would have some ad and develop into a more effective competitor in verse effects on concentration in the relevant the Wausau RMA banking market. On the other banking market. hand, denial of the subject acquisition would pre Bank has deposits of approximately $6.2 mil serve the possibility that a dissolution of the lion, representing 2.5 per cent of the total deposits affiliation relationship could occur in the future. in commercial banks in the relevant banking mar Such a dissolution would be likely to result in ket,2 and is the smallest of seven banks operating increased competition and a deconcentration in the in that market. Applicant’s lead bank, First Amer Wausau banking market. The Board regards this ican National Bank of Wausau, is the largest bank latter consideration as particularly important be operating in the relevant market and has deposits cause few independent banks remain available in of $120.5 million, representing approximately 49 this market for acquisition by out-of-area banking per cent of the total deposits in commercial banks organizations. Thus, the facts of record show that in the market. this proposal offers no positive competitive effects, Applicant is the largest banking organization in but instead, would result in significant adverse the Wausau RMA banking market, controlling effects upon competition in the relevant banking approximately 53 per cent of the total deposits in market by further increasing the concentration of commercial banks in the market. The second and banking resources and by eliminating the possi third largest banking organizations in the market bility that increased competition would develop in control, respectively, approximately 14 and 10 per cent of the market’s deposits. Thus, it appears that Applicant is a dominant factor in this banking 3 Bank was organized by several officers and directors of market which is regarded as a highly concentrated Applicant. Prior to Bank’s opening, Applicant applied for market. Consummation of the proposed acquisi Board approval to acquire Bank. Although the Board denied the application, 52 Fed. Res. Bulletin 29 (1966), Bank opened for business on April 26, 1967. Currently, various shareholders of Applicant own 82 per cent of Bank’s shares. In addition, Applicant’s president is the chairman of the board 1A\l banking data are as of June 30, 1975. of Bank. A director of Applicant also serves as the president 2 The relevant banking market is approximated by the Wau of Bank. Another individual serves as a director of both sau RMA. Applicant and Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
540 Federal Reserve Bulletin □ June 1976 the future. In the Board’s view, such consid Bank. Accordingly, the proposed acquisitihn of erations require denial of the application unless shares of the successor organization is treated they are clearly outweighed in the public interest herein as the proposed acquisition of the shares by other considerations reflected in the record.4 of Bank. The financial condition, managerial resources Notice of the application, affording opportunity and future prospects of Applicant, its subsidiary for interested persons to submit comments and banks, and Bank are satisfactory. Although the views, has been given in accordance with § 3(b) banking factors are consistent with approval of the of the Act. The time for filing comments and views application, they provide no significant support for has expired, and the Board has considered the approval of the application. Applicant states that, application and all comments received in light of following the consummation of this proposal, the factors set forth in § 3(c) of the Act (12 U.S.C. Bank would offer to its customers trust and payroll 1842(c)). services, and would extend its banking hours. Applicant, the largest banking organization in While these improved services lend some weight Ohio, controls eight banks with aggregate deposits toward approval, the Board does not consider these of approximately $3.2 billion, representing 10.8 convenience and needs considerations sufficient to per cent of the total deposits in commercial banks outweigh the anticompetitive effects of the appli in the State.1 Acquisition of Bank (deposits of cation described above. Accordingly, it is the $18.3 million) would increase Applicant’s share Board’s judgment that approval of the proposed of Statewide deposits by only 0.06 per cent, and acquisition would not be in the public interest and would have no appreciable effect upon the con the application should be denied. centration of banking resources in Ohio. On the basis of the record, the application is Bank, which is located in the city of Medina denied for the reasons summarized above. about 25 miles south of downtown Cleveland, By order of the Board of Governors, effective competes on the fringe of the Cleveland banking May 26, 1976. market2 and controls about 0.2 per cent of total market deposits.3 Some 37 banking organizations Voting for this action: Chairman Burns and Gover (including Ohio’s eight largest) with a total of 432 nors Gardner, Coldwell, Jackson, and Partee. Absent and not voting: Governor Wallich. banking offices, compete in the Cleveland banking market. Applicant is the largest banking organi (Signed) Griffith L. Garwood, zation in the market and holds approximately 31.1 [seal] Assistant Secretary of the Board. per cent of market deposits. Bank is one of the smaller banking organizations in the Cleveland market and ranks 26th among the banking organi zations in that market. Thus, in view of Bank’s 4The Board’s conclusion as to the effects on competition of the subject proposal are similar to its findings in the Order relative size (Bank also ranks only 5th out of 9 denying Applicant’s previous application to acquire Bank, cited banks in Medina County), its acquisition by Ap above. plicant would increase only slightly Applicant’s market share and the concentration of deposits in C leveT rust C orporation, Cleveland. However, the evidence of record shows C leveland, O hio that the Cleveland banking market has become less concentrated over time.4 Applicant’s banking sub Order Approving Acquisition of Bank CleveTrust Corporation, Cleveland, Ohio 1 Unless otherwise indicated, all banking data are as of (“Applicant”), a bank holding company within September 30, 1975, and reflect bank holding company forma the meaning of the Bank Holding Company Act, tions and acquisitions approved through April 30, 1976. has applied for the Board’s approval under § 2The Cleveland banking market, which is the relevant bank ing market, is approximated by all of Cuyahoga, Lake and 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac Geauga Counties, the northwestern quarter of Portage County, quire all of the voting shares (less directors’ quali the northern third of Summit County, all but the southern-most tier of townships in Medina and Lorain Counties (which appear fying shares) of the successor by merger to The to have stronger ties to Akron) and the City of Vermilion which Savings Deposit Bank Company, Medina, Ohio straddles the border of Lorain and Erie Counties. (“Bank”). The bank into which Bank is to be 3 All market data are as of June 30, 1974. 4 During the period June 1968 to June 1974, the deposit share merged has no significance except as a means to of the four largest banking organizations in the Cleveland facilitate the acquisition of the voting shares of banking market declined from 77.8 per cent to 72.3 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 541 sidiary closest to Bank is located 11.4 miles north Bank’s physical plant appears to be somewhat of Bank, in Cuyahoga County, and is separated inadequate. Affiliation with Applicant will result from Bank by a number of intervening banking in a remodeling and modernizing of Bank’s physi offices. Even though Applicant and Bank operate cal plant. Other benefits to be derived from affilia in the same market, the facts of record show there tion are that Applicant would enable Bank to is no overlap of service areas nor would approval expand and improve the range of banking services result in the elimination of any significant amount presently offered to Bank’s customers. Applicant of existing competition. has also indicated it will make available to Bank, In assessing the effects of the proposal on po and Bank’s customers, equipment leasing, trust tential competition, the Board is of the view that management services, accounts receivable financ although Applicant may possess the capabilities ing, and data processing services for maintaining to enter Medina County de novo and acquisition account records. The Board concludes, therefore, of Bank would eliminate one independent banking that considerations relating to the convenience and alternative in the relevant market, there are several needs of the community to be served outweigh other facts of record which mitigate these slightly the slight anticompetitive effects of the proposal. adverse competitive effects. Ohio’s restrictive Accordingly, it is the Board’s judgment that the branching law, which limits branching to home proposed acquisition would be in the public inter office counties, prohibits Applicant’s present sub est and that the application should be approved. sidiaries from branching into the Medina County On the basis of the record, the application is portion of the market; moreover, it appears un approved for the reasons summarized above. The likely that Applicant would enter Medina County transaction shall not be made (a) before the thir de novo since its population and deposits-per- tieth calendar day following the effective date of banking-office ratios are well below State this Order or (b) later than three months after the averages. Furthermore, following approval, there effective date of this Order, unless such period would remain 19 other independent banks as pos is extended for good cause by the Board, or by sible entry points into the market for competitors. the Federal Reserve Bank of Cleveland pursuant Accordingly, it is concluded that consummation to delegated authority. of the proposal would have only slightly adverse By order of the Board of Governors, effective effects on potential competition. May 10, 1976. However, the Board’s inquiry does not end Voting for this action: Vice Chairman Gardner and here. Under the provisions of § 3(c) of the Bank Governors Wallich and Jackson. Voting against this Holding Company Act of 1956, as amended, the action: Governor Coldwell. Absent and not voting: Board must determine whether these anticompeti Chairman Burns and Governors Holland and Partee. tive effects are outweighed by other positive con (Signed) Griffith L. Garwood, siderations reflected in the record such as financial [seal] Assistant Secretary of the Board. and managerial resources and future prospects of Applicant and Bank or the convenience and needs of the communities to be served. The financial and managerial resources and fu Southw est Florida B anks, Inc., ture prospects of Applicant and its subsidiaries are Fort M yers, Florida regarded as satisfactory. However, while the fi nancial resources of Bank are satisfactory, its net Order Approving Acquisition of Bank earnings have been declining over time (from 1971 Southwest Florida Banks, Inc., Fort Myers, to 1975).5 Furthermore, Bank appears to possess Florida, a bank holding company within the limited managerial resources. Affiliation with Ap meaning of the Bank Holding Company Act, has plicant will result in the strengthening of Bank’s applied for the Board’s approval under § 3(a)(3) financial and managerial base. Therefore, banking of the Act (12 U.S.C. § 1842(a)(3)) to acquire factors lend weight toward approval. Moreover, 80 per cent or more of the voting shares of First National Bank and Trust Company of Naples, Naples, Florida (“Bank”). 5 In 1974, the average percentage of net income to total assets Notice of the application, affording opportunity for member banks in the Fourth District of the same depositfor interested persons to submit comments and size group was 1.1 per cent, while the figure for Bank was 0.45 per cent. views, has been given in accordance with § 3(b) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
542 Federal Reserve Bulletin □ June 1976 of the Act. The time for filing comments and views The financial and managerial resources of Ap has expired, and the Board has considered the plicant, its subsidiaries and Bank are considered application and all comments received in light of to be generally satisfactory and the future pros the factors set forth in § 3(c) of the Act (12 U.S.C. pects for each appear favorable. Thus, the banking § 1842(c)). factors are consistent with approval. Bank’s Applicant, the seventeenth largest banking or affiliation with Applicant should enable Bank to ganization in Florida, controls eight banks with offer expanded and improved services by drawing aggregate deposits of approximately $284 million, on Applicant’s expertise and resources. These representing 1.2 per cent of the total deposits in considerations relating to the convenience and commercial banks in the State.1 Applicant’s ac needs of the community to be served Jend some quisition of Bank would increase Applicant’s share weight toward approval of the application. Ac of total State deposits by 0.3 per cent and would cordingly, it is the Board’s judgment that con not result in a significant increase in the concen summation of the proposal to acquire Bank would tration of banking resources in the State. Upon be in the public interest and that the application consummation of the subject proposal, Applicant should be approved. would become the 16th largest banking organi On the basis of the record, the application is zation in Florida. approved for the reasons summarized above. The Bank holds deposits of approximately $68.5 transaction shall not be made (a) before the thir million, representing 29.1 per cent of the total tieth calendar day following the effective date of deposits in commercial banks operating in the this Order or (b) later than three months after the Naples banking market, and ranks as the second effective date of this Order, unless such period largest of eight banks in the market.2 Applicant is extended for good cause by the Board, or by does not have a subsidiary bank in the relevant the Federal Reserve Bank of Atlanta pursuant to market, although an office of one of Applicant’s delegated authority. subsidiary banks is located in an adjacent banking By order of the Board of Governors, effective market. It appears that no meaningful competition May 19, 1976. presently exists between any of Applicant’s sub Voting for this action: Chairman Burns and Gover sidiary banks and Bank, nor do the facts of record nors Gardner, Wallich, Coldwell, and Partee. Absent indicate that such competition is likely to develop and not voting: Governor Jackson. in the foreseeable future. Moreover, it appears (Signed) Griffith L. Garwood, unlikely that Applicant would expand de novo into [seal] Assistant Secretary of the Board. the Naples banking market since the population per banking office ratio of the market is well below the respective State average. In addition, Appli Orders Under Section 4 cant has committed to terminate four interlocking directorships between Bank and Vanderbilt Bank, of Bank Holding Company Act Naples, Florida, within 30 days of Bank’s acqui sition. This should have a salutary effect on com C entral M ortgage B ancshares, Inc., petition in the market. On the basis of the entire W arrensburg, M issouri record, the Board concludes that consummation Order Approving of the subject proposal would not have any signif Acquisition of Cenco Insurance Company icant adverse effecs on existing or potential com petition in any relevant area and that the competi Central Mortgage Bancshares, Inc., Warrens tive considerations are consistent with approval of burg, Missouri, a bank holding company within the application. the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to acquire direct or indirect owner 1 All banking data are as of June 30, 1975, and represent ship or control of all of the voting shares of Cenco holding company formations and acquisitions approved by the Board through April 30, 1976. Insurance Company (“Cenco”), Phoenix, Ari 2The Naples banking market, the relevant geographic market zona. Cenco would engage de novo in the activity for purposes of analyzing the competitive effects of this pro of underwriting, as reinsurer, credit life and credit posal, is approximated by all of Collier County, Florida, excluding therefrom the town of Immokalee. accident and health insurance directly related to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 543 extensions of credit by Applicant’s subsidiary in which an applicant demonstrates that approval banks: Barton County State Bank, Lamar, Mis will benefit the consumer or result in other public benefits. Normally, such a showing would be made souri; Citizens Bank of Warrensburg Mo., Warby a projected reduction in rates or increase in rensburg, Missouri; Farmer’s Bank of Stover, policy benefits to bank holding company perform Stover, Missouri; and Jackson County State Bank, ance of this service. (12 CFR §225.4(a)(10) n. 7). Kansas City, Missouri, (“Banks”). Such activity Applicant has stated that following consumma has been determined by the Board to be closely tion of the acquisition, Cenco will offer at reduced related to banking (12 CFR 225.4(a)(10)). premiums the several types of credit insurance Notice of the application, affording opportunity policies that it will reinsure. Cenco will offer for interested persons to submit comments and decreasing term credit life insurance on instalment views on the public interest factors, has been duly loans and level term credit life insurance on single published (41 Federal Register 826 (1976)). The payment loans at a premium rate 15 per cent below time for filing comments and views has expired, the statutory maximum allowable rates in Mis and the Board has considered the application and souri. Applicant also proposes that Cenco will all comments received in the light of the public offer a 5 per cent reduction on the premium rate interest factors set forth in § 4(c)(8) of the Act its subsidiary banks charge for credit accident and (12 U.S.C. 1843(c)(8)). health insurance. Applicant, the twenty-seventh largest banking The Board notes that proposed legislation had organization in Missouri, controls four subsidiary been pending in the State of Missouri which, if banks with aggregate deposits of approximately adopted, would have reduced the maximum al $62 million, representing about 0.4 per cent of lowable rates for credit life and credit accident and the total deposits in commercial banks in the health insurance. In order to ensure that Appli State.1 cant’s proposal would provide a continuing benefit Cenco’s activities will be limited to acting as to the public should such legislation ever become reinsurer of credit life and credit accident and effective, Applicant further committed that Cenco health insurance directly related to extensions of would reduce its rates below the maximum levels credit by Banks. Cenco will be formed as an established by the new legislation by amounts Arizona insurance corporation and will be quali which would be consistent with rate reductions fied to underwrite insurance directly only in Ari previously approved by the Board in connection zona. Accordingly, the insurance sold by Appli with applications involving premium rate struc cant’s subsidiary banks will be directly underwrit tures comparable to those which would be adopted ten by an unaffiliated insurance company qualified in Missouri. The Board is of the view that the to do business in Missouri, and will thereafter be reductions in insurance premiums that Applicant assigned or ceded to Cenco under a reinsurance proposes to establish are, and will continue to be, agreement. Since this proposal involves a de novo in the public interest. acquisition, consummation of the transaction Based upon the foregoing and other consid would not have any adverse effects on existing erations reflected in the record, the Board has or potential competition in any relevant market. determined that the balance of the public interest Credit life and credit accident and health insur factors the Board is required to consider under ance are generally made available by banks and §4(c)(8) is favorable. Accordingly, the application other lenders and are designed to assure repayment is hereby approved. This determination is subject of a loan in the event of death or disability of to the conditions set forth in §225.4(c) of Regula the borrower. In connection with its addition of tion Y and to the Board’s authority to require such the underwriting of such insurance to the list of modification or termination of the activities of a permissible activities for bank holding companies, holding company or any of its subsidiaries as the the Board stated: Board finds necessary to assure compliance with To assure that engaging in the underwriting of the provisions and purposes of the Act and the credit life and credit accident and health insurance Board’s regulations and orders issued thereunder can reasonably be expected to be in the public interest, the Board will only approve applications or to prevent evasion thereof. The transaction shall be made not later than three months after the effective date of this Order unless such period is extended for good cause by 1All banking data are as of June 30, 1975. the Board or by the Federal Reserve Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
544 Federal Reserve Bulletin □ June 1976 Kansas City pursuant to authority hereby dele lumbus National Bank, with deposits of $3.1 mil gated. lion, representing approximately 0.1 of one per By order of the Board of Governors, effective cent of the total commercial bank deposits in North May 14, 1976. Dakota.2 Upon Applicant’s formation in No vember 1968, Company was acquired by Appli Voting for this action: Vice Chairman Gardner and cant. Presently, Company competes with several Governors Holland, Jackson, and Partee. Absent and not voting: Chairman Burns and Governors Wallich and other insurance agencies located in the relevant Coldwell. market which is approximated by the northern half of Burke County and the northeastern corner of (Signed) Griffith L. Garwood, Divide County. Following its acquisitions of [seal] Assistant Secretary of the Board. Forthun Agency and Darras Agency, Company became the only general insurance agency in Co D akota B ancorporation lumbus. However, the evidence of record shows R apid C ity, South D akota that at the time of acquisition Forthun Agency and Darras Agency were small in the relevant market Order Approving and they were not particularly strong competitors. Retention of Insurance Agency Activities Thus, it is the Board’s judgment that whatever slight adverse competitive effects might have re Dakota Bancorporation, Rapid City, South Da sulted, these are outweighed by the public benefits kota (“Applicant”), a bank holding company resulting from Applicant’s retention of Company within the meaning of the Bank Holding Company which would assure the residents of Columbus of Act (“Act”), has applied for the Board’s ap the continued availability of a convenient source proval, under section 4(c)(8) of the Act (12 U.S.C. of general insurance agency activities. The § 1843(c)(8)) and section 225.4(b)(2) of the Board’s review of the record of the affiliation Board’s Regulation Y (12 CFR §225.4(b)(2)), to indicates that the benefits have continued to out continue to engage in the activity of a general weigh such slight adverse effects. insurance agency, through Columbus Insurance There is no evidence in the record indicating Agency (“Company”),1 in Columbus, North Da that retention of Company would result in any kota, a community having a population not ex undue concentration of resources, unfair competi ceeding 5,000. Such activity has been determined tion, conflicts of interests, unsound banking prac by the Board to be closely related to banking (12 tices or other adverse effects on the public interest. CFR §225.4(a)(9)(iii)(a)). In accord with the Board’s position with respect Notice of the application, affording opportunity to violations of the Act, the Board has scrutinized for interested persons to submit comments and the underlying facts surrounding the acquisition of views on the public interest factors, has been duly the assets of Forthun Agency and Darras Agency published (41 Federal Register 11363). The time without the Board’s prior approval. Upon an ex for filing comments and views has expired, and amination of all the facts of record, the Board the Board has considered the application and all believes that the facts surrounding the violations comments received in the light of the public inter in this case are not such as would call for denial est factors set forth in section 4(c)(8) of the Act. of this application. The Board regards the standards of section Based upon the foregoing and other consid 4(c)(8) to be as applicable to the retention of a erations reflected in the record, the Board has “ten year grandfathered” activity as to a proposed determined that the balance of the public interest section 4(c)(8) acquisition. factors the Board is required to consider under Applicant controls one banking subsidiary, Co section 4(c)(8) is favorable. Accordingly, the ap plication is hereby approved. This determination is subject to the conditions set forth in section 1 Applicant indirectly acquired without Board approval the assets of Forthun Agency (in January 1971) and Darras Agency 225.4(c) of Regulation Y and to the Board’s au (in September 1973), both general insurance agencies located thority to require such modification or termination in Columbus, North Dakota. Acquisition of the assets of of the activities of a holding company or any of Forthun Agency did not require Board approval by virtue of the provisions of §225.4(d) of Regulation Y. Furthermore, it appears from the facts of record that the acquisition of the assets of Darras Agency was based on a bona fide misinterpre tation of applicable statutes and regulations. 2 All banking data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 545 its subsidiaries as the Board finds necessary to not be a successor to the grandfather privileges assure compliance with the provisions and pur of Republic Bank, and Applicant has committed, poses of the Act and the Board’s regulations and and is required to dispose of the nonpermissible orders issued thereunder, or to prevent evasion activities within the statutory period prescribed in thereof. § 4(a)(2) of the Act or, in the alternative, to apply By order of the Board of Governors, effective to the Board for approval to retain them. In this May 17, 1976. proposal, Applicant has applied to retain the lend ing activities of Howard. The Board regards the Voting for this action: Chairman Burns and Gover standards under § 4(c)(8) of the Act to continue nors Gardner, Wallich, Coldwell, Jackson, and Partee. to engage in activities to be the same as the (Signed) Griffith L. Garwood, standards for a proposed acquisition. [seal] Assistant Secretary of the Board. Applicant, the 4th largest banking organization in Texas, controls three subsidiary banks with aggregate deposits of approximately $2.8 billion, R epublic of T exas C orporation, representing approximately 6.5 per cent of the total D allas, Texas deposits in commercial banks in the State.2 Appli cant received approval from the Federal Reserve Order Approving Retention Bank of Dallas, acting pursuant to § 225.4(b)(1) of The Howard Corporation with of the Board’s Regulation Y (12 CFR 225), to Respect to its Lending Activities Only engage de novo in direct lending activities on Republic of Texas Corporation, Dallas, Texas, August 19, 1974. Effective with that date, Howard a bank holding company within the meaning of began reducing its loan and commitment activity the Bank Holding Company Act, has applied for and has, in fact, ceased making any new loans the Board’s approval, under Section 4(c)(8) of the and commitments. Act and § 225.4(b)(2) of the Board’s Regulation Howard, a group of companies held in trust for Y, to continue the lending activities of its trusteed the sole benefit of Applicant, engages in a wide affiliate, The Howard Corporation, Dallas, Texas range of activities.3 A substantial portion of How (“Howard”). Such activities have been deter ard’s assets is subject to divestiture under the mined by the Board to be closely related to bank provisions of § 4(a)(2) of the Act. This application ing (12 CFR § 225.4(a)(1)). seeks Board approval for Howard to retain certain Notice of the application, affording opportunity loans made prior to 1974 and maturing not later for interested persons to submit comments and than September 1983. Howard’s current loan views on the public interest factors, has been duly portfolio consists of secured real estate loans, published (41 Federal Register 1331). The time interim construction loans, home mortgages, se for filing comments and views has expired, and cured and unsecured commercial loans, working the Board has considered the application and all capital loans, and personal loans. Since Howard comments received in the light of the public inter has already ceased making any new loans and is est factors set forth in Section 4(c)(8) of the Act no longer an active competitor in any relevant (12 U.S.C. § 1843(c)). market, approval of this application would have By Order dated October 25, 1973, the Board no adverse effects on existing or potential compe approved the formation of Applicant for the pur tition in any market. Approval of this application pose of becoming a bank holding company through should enable Applicant to arrange an orderly the acquisition of Republic National Bank of disposition of the loans previously made by How Dallas, Dallas, Texas (“Republic Bank”).1 Republic Bank was itself a bank holding company by virtue of the 1970 Amendments to the Act and 2 Banking data are as of June 30, 1975. owned various bank and nonbank interests. At the 3These activities include ownership of royalty, net profits, time of its formation, Applicant also obtained working and other interests in oil and gas properties; ownership of minority interests in several Dallas-area banks; direct lend indirect control of The Howard Corporation. The ing activities; and ownership of a number of nonbank subsidi Board has previously ruled that Applicant would aries conducting activities such as credit life and disability insurance, the sale of money orders and travelers checks, and mortgage banking. For a full discussion of Howard’s activities, see the Board’s determination of Applicant’s grandfather priv ileges dated September 10, 1973, 59 Federal Reserve Bulle *38 Federal Register 30580 (November 6, 1973). tin 768 (October 1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
546 Federal Reserve Bulletin □ June 1976 ard. There is no evidence in the record to indicate tion Y and to the Board’s authority to require such that the proposed continuation of Howard’s lend modification or termination of the activities of a ing activities would lead to an undue concentration holding company or any of its subsidiaries as the of resources, unfair competition, conflicts of in Board finds necessary to assure compliance with terests, unsound banking practices, or other ad the provisions and purposes of the Act and the verse effects. Board’s regulations and orders issued thereunder, Based upon the foregoing and other consid or to prevent evasion thereof. erations reflected in the record, the Board has By order of the Board of Governors, effective determined that the balance of the public interest May 18, 1976. factors the Board is required to consider under § Voting for this action: Chairman Burns and Gover 4(c)(8) is favorable, and the application should be nors Gardner, Wallich, Coldwell, Jackson, and Partee. approved. Accordingly, the application is hereby approved. This determination is subject to the (Signed) Griffith L. Garwood, conditions set forth in section 225.4(c) of Regula [seal] Assistant Secretary of the Board. Orders Approved Under Bank Holding Company Act— By the Board of Governors During May 1976, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action Federal (effective Register Applicant Bank(s) date) citation BUYA Corp., Wakefield, Nebraska The Wakefield National Bank 5/3/76 41 F.R. 19263 Wakefield, Nebraska 5/11/76 Merrill Bankshares Company, Firstbank, N.A., 5/28/76 41 F.R. 22995 Bangor, Maine Farmington, Maine 6/8/76 Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation Commercial National Corporation, Commercial National Life 5/28/76 41 F.R. 22994 Peoria, Illinois Insurance Company, 6/8/76 Scottsdale, Arizona Marshall & Ilsley Corporation, Clayton Mitchell Agency, 5/24/76 41 F.R. 21846 Milwaukee, Wisconsin Endeavor, Wisconsin and 5/28/76 Darrell J. Schellkopf Agency, Oxford, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department 547 Sections 3 and 4 Board action Federal Nonbanking company (effective Register Applicant Bank(s) (or activity) date) citation Crawford State Crawford Crawford Bank 5/21/76 41 F.R. 21845 Company, Craw State Bank, Agency, Craw 5/28/76 ford, Nebraska Crawford, ford, Nebraska Nebraska Sumner County The National Insurance agency 5/14/76 41 F.R. 20929 Bancshares, Bank of activities 5/21/76 Inc., Welling Commerce ton, Kansas of Welling ton, Welling ton, Kansas Woodbine Agency, The Citizens Insurance agency 5/19/76 41 F.R. 21701 Inc., Woodbine, State Bank, activities 5/27/76 Kansas Woodbine, Kansas By Federal Reserve Banks During May 1976, applications were approved by the Federal Reserve Banks as listed below. The orders have been published in the Federal Register, and copies are available upon request to the Reserve Bank. Section 3 Federal Reserve Effective Register Applicant Bank(s) Bank date citation Valley of The First Richmond 5/4/76 41 F.R. 193083 Virginia National Bank 5/12/76 Bankshares, of Troutville, Inc., Harrison Troutville, burg, Virginia Botetourt County, Virginia Sections 3 and 4 Nonbanking Federal company Reserve Effective Register Applicant Bank(s) (or activity) Bank date citation Adair Insurance Exchange Insurance Chicago 5/13/76 41 F.R. 21410 Agency, Inc., State Bank, agency 5/25/76 Adair, Iowa Adair, Iowa activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
548 Federal Reserve Bulletin □ June 1976 Order Approved Under Bank Merger Act— Board action Federal (effective Register Applicant Bank(s) date) citation Manufacturers Hanover Trust Manufacturers Hanover Trust 5/12/76 41 F.R. 20453 Company, New York Company /Mid-Hudson, Monroe, 5/18/76 New York, and Manufacturers Hanover Trust Company/ Suffolk, National Association, Bay Shore, New York Pending Cases Involving the Board of Governors* Save Needed Environmental Levels League v. First Lincolnwood Corporation v. Board of Southern California Company, et al., filed Governors, filed February 1976, U.S.C.A. May 1976, U.S.D.C. for the Central District for the Seventh Circuit. of California. Helen C. Hatten, et al. v. Board of Governors, National Urban League, et al. v. Office of the filed January 1976, U.S.D.C. for the District Comptroller of the Currency, et al., filed of Connecticut. April 1976, U.S.D.C. for the District of International Bank v. Board of Governors, filed Columbia Circuit. December, 1975, U.S.C.A. for the District Farmers & Merchants Bank of Las Cruces, of Columbia. New Mexico v. Board of Governors, filed Roberts Farms, Inc. v. Comptroller of the Cur April 1976, U.S.C.A. for the District of rency, etal., filed November 1975, U.S.D.C. Columbia Circuit. for the Southern District of California. Blackstone Valley National Bank v. Board of National Computer Analysts, Inc. v. Decimus Governors, filed April 1976, U.S.C.A. for Corporation, et al., filed November 1975, the First Circuit. U.S.D.C. for the District of New Jersey, United States ex rel. A.R. Martin-Trigona v. tPeter E. Blum v. First National Holding Cor Arthur F. Burns, et al., March 1976, poration, filed November 1975, U.S.D.C. for U.S.D.C. for the District of Columbia. the Northern District of Georgia. Grandview Bank & Trust Company v. Board Harlan National Co. v. Board of Governors, of Governors, filed March 1976, U.S.C.A. filed November 1975, U.S.C.A. for the for the Eighth Circuit. Eighth Circuit, Federated Capital Corporation v. Board of tPeter E. Blum v. Morgan Guaranty Trust Co., Governors, filed March 1976, U.S.C.A. for et al., filed October 1975, U.S.D.C. for the the District of Columbia. Northern District of Georgia. Association of Bank Travel Bureaus, Inc. v. A.R. Martin-Trigona v. Board of Governors, Board of Governors, filed February 1976, et al, filed September 1975, U.S.D.C. for U.S.C.A. for the Seventh Circuit. the Northern District of Illinois. Memphis Trust Company v. Board of Gover A.R. Martin-Trigona v. Board of Governors, nors, filed February 1976, U.S.D.C. for the et al., filed September 1975, U.S.D.C. for Western District of Tennessee. the Northern District of Illinois, tLogan v. Secretary of State, et al., filed Sep tember 1975, U.S.D.C. for the District of Columbia. *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
Law Department 549 Florida Association of Insurance Agents, Inc., Louis J. Roussel v. Board of Governors, filed v. Board of Governors, and National Asso April 1975, U.S.D.C. for the Eastern District ciation of Insurance Agents, Inc. v. Board of Louisiana. of Governors, filed August 1975, actions Georgia Association of Insurance Agents, et al. consolidated in U.S.C.A. for the Fifth Cir v. Board of Governors, filed October 1974, cuit. U.S.C.A. for the Fifth Circuit. Henry M. Smith v. National Bank of Boulder, Alabama Association of Insurance Agents, et er al., filed June 1975, U.S.D.C. for the al. v. Board of Governors, filed July 1974, Northern District of Texas. U.S.C.A. for the Fifth Circuit, Bank of Boulder v. Board of Governors, et al., tInvestment Company Institute v. Board of Gov filed June 1975, U.S.C.A. for the Tenth Cir ernors, dismissed July 1975, U.S.D.C. for cuit. the District of Columbia, appeal pending, ttDavid R. Merrill, et al., v. Federal Open Mar U.S.C.A. for the District of Columbia Cir ket Committee of the Federal Reserve System, cuit. filed May 1975, U. S. D. C. for the District of East Lansing State Bank v. Board of Gover Columbia, appeal pending, U.S.C.A. for the nors, filed December 1973, U.S.C.A. for the District of Columbia. Sixth Circuit, Curvin J. Trone v. United States, filed April tConsumers Union of the United States, Inc., 1975, U.S. Court of Claims. et al. v. Board of Governors, filed September Richard S. Kaye v. Arthur F. Burns, et al., 1973, U.S.D.C. for the District of Columbia. filed April 1975, U.S.D.C. for the Southern Bankers Trust New York Corporation v. Board District of New York. of Governors, filed May 1973, U.S.C. A. for the Second Circuit. $The Board of Governors is not named as a party in this f Decisions have been handed down in these cases, subject action. to appeals noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
550 Announcements A PPO IN TM EN T: mortgage loans are made. Depositary institutions subject to the Act are those that have $10 million D avid M . Lilly as M em ber or more in assets, that have offices in principal of the Board of G overnors metropolitan areas (Standard Metropolitan Statis President Ford on April 15, 1976, announced his tical Areas—SMSA’s), that make first mortgage intention to appoint David M. Lilly as a member loans on 1- to 4-family residences, and that are of the Board of Governors of the Federal Reserve Federally insured or regulated. The Act defines System. Mr. Lilly’s appointment was subsequently depositary institutions as commercial banks, sav confirmed by the Senate on May 28, and his oath ings banks, savings and loan associations, building of office was administered on June 1. and loan associations or homestead associations The text of the White House announcement (including cooperative banks), and credit unions. follows: Some 4,400 commercial banks, 3,000 savings and loan associations, 470 mutual savings banks, and The President has announced his intention to 600 credit unions are affected. nominate David M. Lilly, of St. Paul, Min nesota, to be a member of the Board of The Home Mortgage Disclosure Act makes the Governors of the Federal Reserve System for Board responsible for writing a regulation to im the unexpired term of fourteen years from plement it. The regulation is to be enforced by February 1, 1964. He will succeed Robert C. the Board, the other Federal bank regulatory Holland who resigned effective May 15, agencies, the Federal Home Loan Bank Board, and 1976. the Administrator of the National Credit Union Born on June 14, 1917, in St. Paul, Minne Administration. sota, Mr. Lilly received his A.B. degree from The Home Mortgage Disclosure Act grew out Dartmouth in 1939. He served in the United of allegations that there were credit shortages in States Army from 1942 to 1945. some parts of large urban areas. The Act and In 1941, Mr. Lilly became Assistant to the Regulation C specify that nothing in them is meant Under Secretary of the Treasury. He joined to encourage unsound lending practices or alloca the Toro Company in 1945 and became Pres tion of credit. ident of the Company in 1950. He became The principal provisions of the proposed new Chairman of the Board in 1968 and since 1970 has served as Chairman of the Board regulation are: and President. —Designation of the mortgage loan in formation to be disclosed. Mr. Lilly is married to the former Perrin Brown and they have three children. They —A sample form, suggesting how re reside in St. Paul, Minnesota. quired data may be reported. —Establishment of procedures to be fol N EW REG U LA TIO N C lowed by State-chartered depositary institu tions seeking exemption from the Act. The Board of Governors on June 9, 1976, an —Requirements for reporting by geo nounced adoption of a new regulation to imple graphic areas. Initial disclosure statements ment the Home Mortgage Disclosure Act of 1975. for fiscal years ending before July 1, 1976, The Act, and the new Regulation C implement may be made by zip code. In general, loans originated or purchased after that date on ing it, became effective June 28. The regulation property in the areas where the lender has was adopted substantially as proposed by the offices must be reported by census tract. Board on March 29. Regulation C requires lending institutions sub The data to be disclosed are to be made available ject to the Act to disclose publicly where their at lending institutions subject to the Act. Informa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 551 tion to be disclosed includes: (1) first mortgage 3. Home improvement loans. loans to purchase residential property; and (2) Loans on multifamily dwellings (more than four secured and unsecured home improvement loans. units) are to be reported separately. The principal changes in the regulation from the When the property is located in an SMSA where earlier proposal are: the lender has offices, the lender is also required to indicate mortgage loans on 1- to 4-family resi —The definition of “mortgage loan” has dences made to borrowers who did not, at the time been narrowed, to exclude junior liens (ex of execution of the mortgage, intend to live in cept for home improvement purposes) and first mortgages taken as additional collateral the mortgaged residence. for business purposes. To implement a further provision of the Act, the regulation requires, as a general rule, that —The deadline for the initial disclosures mortgage loan disclosures on properties within required by the regulation has been extended by 1 month, to September 30, to give ade SMSA’s where the lender is headquartered or has quate time after issuance of the regulation a branch be itemized according to the census tract for lenders to prepare the required disclosure in which the property is located. However, in reports. certain limited circumstances reporting by zip code is permissible. Loans on properties not located in —A provision has been added to require lenders to notify their depositors as to when SMSA’s where the lender has an office will be the mortgage disclosure statement of the reported but not itemized by either census tract institution is available, and to provide the or zip code. name and address of the appropriate Federal A census tract is a small geographical territory, enforcement agency. containing about 4,000 inhabitants, into which The regulation defines a mortgage loan subject counties in SMSA’s have been divided for pur to disclosure as a “residential mortgage loan” or poses of statistical analysis. Census tracts are laid any “home improvement loan.” A residential out with the objective of achieving some uni mortgage loan is described as a loan secured by formity of population characteristics and economic a first mortgage on residential real property located status. in a State, the District of Columbia, or Puerto On the basis of the 1970 census, the Census Rico. A home improvement loan subject to dis Bureau has issued a series entitled “1970 Census closure under the regulation is an unsecured loan Population and Housing: Census Tracts, Final or a loan secured by collateral other than a first Reports/PHC(l) Series.” This contains tract maps mortgage if the proceeds are to be used for resi for every portion of all the SMSA’s designated dential repairs, rehabilitation, or remodeling and at that time and for some adjacent areas. Since is recorded on the lender’s books as a home 1970 the Office of Management and Budget has improvement loan. redefined many SMSA’s and added others. Tract As required by the Act, the regulation requires maps for the new or redefined SMSA’s are readily the breakdown of the disclosed mortgage loan available only to the extent that they appear on information into two main categories and several the PHC(l) series of 1970. classes under each main category. A list of currently defined SMSA’s showing The main categories are: (1) loans made origi portions for which census tract itemization would nally by the depositary institution; and (2) loans be required will be made available through the originated by another institution but purchased by Board and Reserve Banks. The Board said it would the depositary institution. inform lenders of future changes in SMSA’s. Within each of these categories loan data are The regulation provides that: to be divided according to loans on property lo 1. An institution with more than $10 million cated within the SMSA’s where the headquarters in assets should refer to currently designated or branches of depositary mortgage lenders are SMSA’s to determine if it is subject to the Act. located and loans outside those SMSA’s. In each 2. Institutions subject to the Act will determine case the following itemizations of information are if itemization by census tract is required by refer to be made for loans on 1- to 4-family residences: ring to the 1970 census tract series. 1. Loans insured or guaranteed by the Federal 3. Loans in areas not included in the 1970 Housing Administration, the Veterans Adminis census tract series are to be itemized by zip code tration, and Farmers Home Administration. areas. 2. Conventional mortgage loans. The regulation permits use of zip code itemiza Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
552 Federal Reserve Bulletin □ June 1976 tion in initial disclosure statements for full fiscal to the Bank of England standby credits totaling years ending before July 1, 1976. In general, loans $5 billion. These arrangements have been made originated or purchased after that date, on property in the light of the recent fall in the value of the in areas where the lender has offices, must be pound sterling under exchange market pressures reported by census tracts. that have led to disorderly market conditions and These provisions are intended to give institu in the common interest in the stability and efficient tions subject to the Act an opportunity to begin functioning of the international monetary system. keeping a record of mortgage loans by census tract Of the total amount, the Federal Reserve System before the loans must be reported in that way. will stand ready to make available $ 1 billion under They provide time for distribution of census tract its existing $3 billion reciprocal currency arrange maps and materials for converting street addresses ment with the Bank of England, and the Treasury, to census tracts and for computer programming through the Exchange Stabilization Fund, will and training personnel, and are designed to reduce stand ready to make available $1 billion under a errors and reporting burdens. swap arrangement with the Bank of England. For fiscal years ending by June 30, 1976, mort gage loan disclosure statements are due by Sep tember 30, 1976. Statements for later years are RECORD S O F FO M C PO LICY due within 90 days after the end of the fiscal year. A CTIO N S: Speed-up of Publication For fiscal years straddling June 30, 1976, reporting dates differ according to whether reporting is done The Federal Open Market Committee announced by zip code or by census tract. on May 24, 1976, that it had voted to speed up Complete mortgage loan data are to be made publication of the records of policy actions taken available at the home office of each institution at each of its monthly meetings. subject to the Act. In addition, at least one branch At its meeting on May 18, 1976, the Committee office in each SMSA is required to make available decided that the policy record for a meeting should mortgage loan data on properties located in that be released a few days after the next regularly SMSA. scheduled meeting, rather than 45 days after the State-chartered lenders, or a State, may apply meeting to which the record relates. Since the to the Board of Governors for an exemption from majority of meetings are held at 4-week intervals, Regulation C when State laws are substantially the delay will most often be about a month. For similar to Federal requirements. the minority of meetings that are followed by a As required by the Act, the Board will carry 5-week interval, it will be about a week longer. out a study to determine the feasibility and useful In view of this action, the FOMC and the Board ness of requiring depositary institutions outside of Governors on May 24, 1976, released the record SMSA’s to make disclosures comparable to those of policy actions taken at the FOMC meeting of under the regulation. To this end, the Board wel April 20, 1976. Under previous rules, this record comes comment and data from lenders and from would not have been made available until June the public regarding the costs of compiling such 7. information and itemization by zip code areas or A delay of approximately 45 days had been in census tracts; the number of requests received to effect since early 1975. From mid-1967 to early inspect data or to make copies; the use made of 1975, a delay of approximately 90 days had been the information by the public; and changes in in effect. Prior to mid-1967, when the rules were lending practices that may have resulted from changed to comply with the Freedom of Informa evaluation of the information. tion Act, the records of policy actions were pub lished only in the Board’s Annual Report to Con gress. U .S. PA RTICIPA TIO N As in the past, the policy record for a meeting will include information on any changes in the IN STA N D BY CRED ITS Committee’s instructions to the Desk during the The Federal Reserve System and the Treasury period before the next regularly scheduled meet Department announced on June 7, 1976, that they ing. Such changes in instructions ordinarily arise would participate with central banks of other out of Committee consultations by telephone or Group of Ten countries, Switzerland, and the Bank telegraph that are held whenever necessitated by for International Settlements in making available special developments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 553 It was understood that the record of policy lished monthly beginning with estimates for June.1 actions would be expanded to include more infor Included are three major component groupings— mation concerning members’ views on longer-run durable goods materials, nondurable goods mate and current policy. At the same time, the Com rials, and energy materials. For durable goods mittee voted to discontinue its Memorandum of materials a subtotal for basic metals will be pro Discussion. These Memoranda, which are detailed vided. For nondurable goods materials four subto accounts of proceedings at meetings of the Com tals will be included—textiles, paper, chemical, mittee, have been available to the public 5 years and the textile, paper, and chemical groups com after the end of the year to which they apply. bined. The Federal Reserve series on capacity and The records of policy actions also are published utilization for all manufacturing are being revised, in the Federal Reserve Bulletin and in the and the new data are expected to be published later Board’s Annual Report. The summary descrip this year. tions of economic and financial conditions they The new index of capacity for production of contain are based solely on information that was materials and the companion series on production available to the Committee at the time of the are each constructed from 96 individual series meeting. corresponding to those classified under materials in the Federal Reserve revised index of industrial production (discussed on pp. 470-79) of this Bul A N N U A L REPO RT: Publication letin). The new total materials series are consid The Sixty-Second Annual Report of the Board of erably more comprehensive in coverage than were Governors of the Federal Reserve System, cover the former major materials series, and they should ing operations for the calendar year 1975, is be more useful in evaluating production and price available for distribution. Copies may be obtained developments related to supply limitations in the upon request to Publications Services, Division of materials industries. Administrative Services, Board of Governors of The new materials capacity series are derived the Federal Reserve System, Washington, D.C. from data on capacity or operating rates for a large 20551. number of industries assembled from a wide vari ety of sources. Included in these are the capacity or operating rate surveys taken by the Bureau of CH A N G ES IN BO A RD STA FF the Census, the Bureau of Economic Analysis (both of the Department of Commerce), and the The Board of Governors has announced the fol Economics Department of McGraw-Hill Publica lowing changes in its official staff: tions Company, as well as data from a number Peter M. Keir, Adviser, Division of Research of trade associations—notably those for iron and and Statistics, has been named Assistant to the steel, petroleum, paper, aluminum, plywood, tex Board in the Office of Staff Director for Monetary tiles, and plastics. Also considered in compiling Policy, effective June 6, 1976. the series are business investment outlays for new Thomas E. Mead, Assistant Director in the plant and equipment and business equipment pro Division of Federal Reserve Bank Examinations duction data. and Budgets, has been named Assistant Director A detailed description of these new series, indi in the Division of Banking Supervision and Regu cating the sources of the data and methodology lation, as of May 23, 1976. used in compiling them, will be published later in the Bulletin. The quarterly utilization rates for the nine materials series to be published regu CA PA CITY A N D ITS U TILIZA TIO N IN M A TERIA LS IN D U STRIES 1 Monthly capacity utilization rates for the nine mate The Federal Reserve has compiled new series on rials groupings for the period June 1975 to June 1976 capacity and its utilization in the materialswill be published in the Federal Reserve G.12.3 press producing industries for the period since 1967. release, “Industrial Production,” for July and in the These new series will replace the previously pub July Bulletin. In addition, quarterly capacity utiliza lished series for major materials. The capacity tion rates for these series for the period 1975 to 1976 will be published in the July “Industrial Production” utilization rates for total materials and for eight release. Historical data for these series will be available groupings of materials-producing industries repre from the Board’s Division of Research and Statistics, senting different market categories will be pub after the June estimates have been released. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
554 Federal Reserve Bulletin □ June 1976 larly are provided in the following table for the CO M M ERCIA L BA N K period from 1973 through 1975. LO AN S A N D IN V ESTM EN TS: Capacity Utilization Rates for Revisions in Series Materials Industries The seasonally adjusted series for bank credit and In per cent its major components that are published regularly Year Ql Q2 Q3 Q4 in the Bulletin (page A-13) have been revised to take account of changes in seasonal factors and Materials, total of adjustments to benchmarks for the latest avail able call report data, December 31, 1975. Revi 1973 ............... 92.1 92.6 92.9 92.1 sions in seasonal factors affect the seasonally ad 1974 ............... 90.5 89.6 89.1 81.7 justed data from 1968 to date, with principal 1975 ............... 71.5 70.6 74.8 76.9 changes in the more recent years. The benchmark Durable goods materials revisions affect data that are not seasonally ad justed for July 1975 through April 1976. However, 1973 ............... 90.7 91.7 92.3 91.3 data prior to July 1975 may vary slightly from 1974 ............... 88.5 87.4 87.7 79.9 those published earlier because of rounding dif 1975 ............... 66.9 64.4 68.8 70.3 ferences associated with the current computer operation. Basic metal materials The revised historical data will not be published 1973 ............... 95.6 97.3 97.5 96.9 in the Bulletin but will be available on request 1974 ............... 94.8 93.9 92.0 86.0 from the Banking Section, Division of Research 1975 ............... 75.2 67.2 70.4 69.9 and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Nondurable goods materials 1973 ............... 93.9 93.6 93.4 93.8 1974 ............... 94.0 93.1 91.6 81.5 N EW RELEA SE: 1975 ............... 70.0 72.5 79.9 84.4 Security Credit Extensions Textile, paper, and chemical materials Data collected by the Board of Governors in an nual surveys of margin account credit extensions 1973 ............... 94.1 93.8 94.0 93.9 by lenders subject to the provisions of Regulations 1974 ............... 93.7 93.3 92.1 81.2 1975 ............... 68.0 70.6 78.5 83.9 T, U, and G (covering brokers, banks, and other lenders, respectively) are now being summarized Textile materials in a special release, C.2, “Aggregate Summaries of Annual Surveys of Security Credit Extension.” 1973 ............... 93.0 93.0 93.8 94.6 This information heretofore had been released in 1974 ............... 93.6 90.4 85.4 70.1 1975 ............... 60.9 71.5 82.7 87.0 supplemental tables in the Bulletin. Beginning this year, with data as of June 30, 1975, the Paper materials information will be available both in the C.2 special release and in the Annual Statistical Digest 1973 ............... 98.4 99.5 98.8 98.2 (publication of which will be announced later). 1974 ............... 98.0 98.4 97.0 89.9 1975 ............... 78.3 73.4 81.2 86.2 REV ISED OTC STO CK LIST Chemical materials The Board of Governors has published a list of 1973 ............... 93.2 92.4 92.5 92.4 over-the-counter (OTC) stocks that are subject to 1974 ............... 92.5 92.7 92.7 82.1 1975 ............... 67.2 69.4 76.5 82.3 its margin regulations, revised as of May 24, 1976. The list, which supersedes the revised list of OTC Energy materials margin stocks that was issued on September 29, 1975, is available on request from Publications 1973 ............... 93.8 93.4 94.1 92.0 Services, Division of Administrative Services, 1974 ............... 90.5 90.3 89.4 87.0 1975 ............... 86.8 85.1 84.3 84.8 Board of Governors of the Federal Reserve Sys tem, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 555 SYSTEM M EM BERSH IP: Michigan Grandville ...................................Old Kent Bank A dm ission of State Banks of Grandville The following banks were admitted to membership Utah in the Federal Reserve System during the period South Salt Lake .....................The Valley Bank May 16, 1976, through June 15, 1976: and Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
556 Industrial Production Released for publication June 16 paced the early recovery, increased at a slower pace. Industrial production increased by an estimated 0.7 Seasonally adjusted, ratio scale, 1967=100 140 MATERIALS per cent in May, following a downward-revised TOTAL - - increase of 0.5 per cent now indicated for April. S - 120 - /y /y PRO ^ DU T CTS, \ v f r TOTAL \ J - The increases for both April and May were held 100 down somewhat by the strike in the rubber in 5 r ' ” 1 I, I........J 1 .. dustry. Growth in output was widespread among product groupings again in May. The total index for May, at 123.2 per cent of the 1967 average, was 12 per cent above the April 1975 low. Auto assemblies changed little in May, as re ductions in output of compact and subcompact models offset gains in other lines. Production of automotive parts and goods was curtailed further because of the rubber strike. Output of consumer durable home goods rose sharply again in May, and production of nondurable consumer goods showed appreciable gains. Production of business equipment also increased quite sharply, but output of construction products declined. Production of steel, nonferrous metals, and most other durable goods materials rose further, while F.R. indexes, seasonally adjusted. Latest figures: May. output of nondurable goods materials, which had *Auto sales and stocks include imports. Seasonally adjusted = 100 rci uiangca iiuin-- 1976 Industrial production Month Year Q4 to Feb. Mar. Apr.* Maye ago ago Ql Total .......................................................... 120.8 121.7 122.3 123.2 .7 11.9 2.6 Products, total ........................................................ 121.4 121.4 122.0 122.8 .7 8.3 2.5 Final products ..................................................... 120.7 120.7 121.4 122.6 1.0 7.8 1.9 Consumer goods .............................................. 132.0 131.8 132.8 133.9 .8 10.5 2.3 Durable goods ............................................ 123.1 124.9 126.5 127.7 .9 15.6 3.5 Nondurable goods ...................................... 135.4 134.4 135.1 136.3 .9 8.8 1.7 Business equipment ........................................ 120.4 120.9 121.8 123.8 1.6 7.7 2.7 Intermediate products ......................................... 123.5 124.0 124.1 123.5 -.5 9.9 4.0 Construction products ..................................... 117.6 118.4 118.7 118.2 -.4 9.9 4.0 Materials ................................................................. 120.0 122.2 122.7 123.8 .9 18.0 3.0 ^Preliminary. *Esti mated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A l Financial and Business Statistics CO N TENTS Federal finance IN SID E B A C K C O V E R A 32 U.S. Government securities Guide to Tabular Presentation A 34 Federally sponsored credit agencies Statistical Releases: Reference A 37 Security issues A 38 Business finance A 40 U .S . ST A T IST IC S Real estate credit A 42 Member bank reserves, Reserve Bank Consumer credit A 2 A 45 credit, and related items Industrial production Federal funds—Money market banks A 48 A 5 Business activity Reserve Bank interest rates A 50 A 6 Construction Al Reserve requirements A 50 Labor force, employment, and Maximum interest rates; margin A 52 A 8 unemployment requirements Open market account Consumer prices A 9 A 53 Federal Reserve Banks Wholesale prices A 10 A 53 Bank debits National product and income A ll A 54 Money stock Flow of funds A 12 A 56 Bank reserves; bank credit A 13 Commercial banks, by classes A 14 IN T E R N A T IO N A L ST A T IST IC S Weekly reporting banks A 18 U.S. balance of payments Business loans of banks A 58 A 23 Foreign trade Demand deposit ownership A 59 A 24 U.S. reserve assets Loan sales by banks A 59 A 25 Gold reserves of central banks and A25 Open market paper A 60 governments Interest rates International capital transactions A 26 A 61 Security markets of the United States A 29 Stock market credit Open market rates A 29 A 74 Savings institutions Central bank rates A 30 A 75 Foreign exchange rates A 75 A 85 IN D E X T O ST A T IST IC A L T A B L E S Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A2 BANK RESERVES AND RELATED ITEMS □ JUNE 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 1970—Dec.......................... 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Dec.......................... 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Dec.......................... 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Dec.......................... 79,701 78,833 868 1,298 3,414 1,079 85,642 11,567 400 8,668 1974—Dec.......................... 86,679 85,202 1,477 703 2,734 3,129 93,967 11,630 400 9,179 1975—May........................ 91,918 89,355 2,563 60 1,877 3,039 97,845 11,620 429 9,464 June........................ 88,912 87,618 1,294 271 2,046 3,098 95,119 11,620 500 9,536 July.......................... 88,166 87,882 284 261 1,911 3,100 94,144 11,620 500 9,616 Aug......................... 86,829 86,348 481 211 1,691 2,953 92,395 11,604 500 9,721 Sept......................... 89,191 87,531 1,660 396 1,823 3,060 95,277 11,599 500 r9,797 Oct.......................... 90,476 89,547 929 191 1,945 3,521 96,931 11,599 500 9,877 Nov......................... 90,934 89,560 1,374 61 2,480 3,481 97,817 11,599 500 10,010 Dec.......................... 92,108 91,225 883 127 3,029 3,534 99,651 11,599 500 10,094 1976—Jan.......................... 92,998 91,524 1,474 79 2,684 3,505 100,172 11,599 500 10,177 Feb.......................... 94,610 92,812 1,798 76 2,375 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 2,236 4,144 100,317 11,599 500 10,501 95,967 94,049 1,918 121 2,201 4,051 103,081 11,599 500 10,554 Week ending— 1976—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 40 2,520 4,340 102,544 11,599 500 10,514 28................... 95,155 93,967 1,188 54 2,249 4,301 102,386 11,599 500 10,522 May 5................... 97,490 94,289 3,201 30 2,464 4,402 105,278 11,599 500 10,499 12................... 93,718 93,099 619 55 2,395 4,361 101,105 11,599 500 10,535 19................... 95,119 93,777 1,342 122 2,377 4,015 102,296 11,599 500 10,541 26*.................. 96,984 94,798 2,186 135 1,893 3,737 103,560 11,599 500 10,581 End of month 1976—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 31 2,067 4,280 105,926 11,599 500 10,459 97,593 94,334 3,259 397 1,133 3,888 103,886 11,599 500 10,588 Wednesday 1976—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 c92,430 72 3,869 3,370 100,326 11.599 500 10,440 24................... 95,920 94,671 1,249 324 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 2,178 322 2,755 4,321 100,028 11,599 500 10,511 21................... 98,151 92,916 5,235 173 2,923 4,677 106,774 11,599 500 10,519 28................... 98,180 93,842 4,338 246 2,579 4,351 106,165 11,599 500 10,526 May 5................... 96,440 94,240 2,200 41 3,340 4,537 105,072 11,599 500 10,533 12................... 96,324 94,136 2,188 258 3,181 4,385 104,866 11,599 500 10,540 19................... 97,044 93,814 3,230 541 3,027 3,542 105,035 11,599 500 10,548 26*................. 96,885 94,780 2,105 644 2,264 3,820 104,328 11,598 500 10,588 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
JUNE 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 counts 4 and With Cur tion Treas For Other 3,6 capital* F.R. rency Total 8 ury eign Banks and coin 7 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. 79,102 326 8,115 262 746 3,231 27,576 6,916 34,492 . 1975—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. 86,565 524 5,211 254 815 3,203 26,345 7,568 34,063 ..........Apr. 87,388 510 7,215 286 655 3,314 26,366 7,838 34,356 ..........MayP Week ending— 84,077 513 9,911 312 813 3,289 26,371 7,577 34,088 . 1976—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 27,208 7,088 34,447 .........21 86,627 516 6,861 238 821 3,334 26,610 7,623 34,384 .........28 86,745 526 8,910 284 815 3,389 27,208 7,937 35,296 .May 5 87,422 522 6,427 327 632 3,136 25,271 8,297 33,720 ........12 87,502 514 6,473 300 568 3,234 26,346 7,638 34,136 ........19 87,402 493 8,055 232 624 3,409 26,024 7,513 33,689 ........26p End of month 85,498 524 7,144 305 796 3,490 28,150 7,453 35,751 .1976—Mar. 86,481 536 9,806 305 762 3,456 27,140 7,937 35,228 ..........Apr. 87,760 470 6,745 303 679 3,500 27,115 7,830 35,098 ..........May^ Wednesday 84,601 505 9,820 233 690 2,994 28,115 7,577 35,832 ......1976—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 29,003 7,088 36,242 .........................21 86,802 517 9,023 287 741 3,447 27,973 7,623 35,747 .........................28 87,289 513 6,046 298 795 3,061 29,702 7,937 37,791 ................May 5 87,818 510 5,795 332 588 3,207 29,255 8,297 37,704 ........................12 87,611 493 7,861 230 518 3,336 27,632 7,638 35,422 ........................19 87,782 480 7,655 251 941 3,435 26,470 7,513 34,135 ........................26*> with voluntary participation by nonmember institutions in the F.R. Sys reserve deficiencies on which F.R. Banks were allowed to waive penalties tem’s program of credit restraint. for transition period associated with bank adaptation to Regulation J, As of Dec. 12, 1974, the amount of voluntary nonmember bank and as amended effective Nov. 9, 1972. For 1973, allowable deficiencies in foreign-agency and branch deposits at F.R. Banks that are associated cluded are (beginning with first statement week of quarter): Ql, $279 with marginal reserves are no longer reported. However, two amounts are million; Q2, $172 million; Q3, $112 million; Q4, $84 million. For 1974, reported: (1) deposits voluntarily held as reserves by agencies and branches Ql, $67 million, 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 with week ending Nov. 15, 1972, includes $450 million of 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 □ JUNE 1976 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re Excess i Total Sea Excess Borrow Excess Borrow Excess Borrow Excess Borrow held1 quired sonal ings ings ings ings 1965—Dec....... 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—De c 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—Dec..... 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—Ma____y 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—Ja n 35,575 35,366 209 79 9 52 9 -18 17 3 13 172 40 Feb....... 33,953 33,939 14 76 11 -147 20 -14 1 -2 16 177 39 Mar...... 33,967 33,531 436 58 8 177 21 36 2 108 14 115 21 Apr....... 34,063 33,974 89 44 11 2 -4 8 -47 15 138 21 May?.. . 34,356 33,845 511 121 11 -27 30 16 2 183 31 124 58 Week ending— 1975—May 7. 35,237 34,926 311 34 11 177 21 — 5 118 34 14. 34,517 34,518 -1 17 8 -106 -26 — 17 1 148 16 21. 34,702 34,631 71 121 7 -33 98 9 -34 2 129 21 28. 34,209 34,045 164 84 9 53 9 4 -5 54 112 21 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 21. 34,447 34,317 130 40 10 -4 -22 18 41 2 115 20 28. 34,384 34,272 112 54 11 16 27 —43 26 112 28 May 5. 35 296 34,855 441 30 11 65 3 6 216 154 27 12. 33,720 33,753 -33 55 9 -43 34 3 3 -112 2 119 16 19. 34,136 33,891 245 122 11 40 40 -14 6 80 34 139 42 26p 33,689 33,514 175 135 11 -91 53 40 -57 31 86 51 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
JUNE 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 Less— 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 actions2 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—Apr. 7........ 80 16,432 -16,352 109.4 22,084 5,652 4,498 17,586 1,155 3,953 *“655 r3,297 14........ 1 19.322 -19,346 127.7 24,269 4,947 4,235 20,033 711 4,156 r801 '3,355 21........ 43 16,895 -16,872 109.6 22,904 6,008 4,968 17,936 1,040 2,665 r874 '1,791 28........ -68 12,665 -12,747 84.4 19,508 6,843 4,715 14,793 2,128 2,248 rl,303 '945 May 5........ 229 11,833 -11,604 74.5 19,850 8,018 4,721 15,130 3,297 2,128 1,696 432 12........ 3 15,423 -15,455 103.0 21,837 6,414 4,332 17,505 2,082 3,207 1,208 1,999 19........ 57 13.323 -13,313 87.4 20,624 7,301 4,526 16,098 2,775 2,680 1,441 1,239 26........ 58 11,305 -11,308 76.8 18,203 6,898 4,228 13,974 2,669 2,272 1,398 874 8 in New York City 1976—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 May 5........ 61 4,275 -4,214 66.4 5,280 1,005 1,006 4,274 1,088 339 750 12........ -3 6,089 -6,126 100.6 6,779 690 690 6,089 1,430 211 1,219 19...... 18 4,768 -4,789 76.5 5,868 1,101 1,101 4,768 1,344 317 1,026 26........ -29 3,108 -3,183 53.8 4,143 1,035 804 3,339 231 1,236 299 937 38 outside New York City 1976—Apr. 7........ 61 10,594 -10,533 118.1 15,807 5,213 4,059 11,748 1,155 1,945 r455 '1,491 14........ -3 12,615 -12,660 140.1 16,865 4,250 3,538 13,327 711 2,349 r568 '1,781 21........ 32 11,868 -11,856 129.7 16,798 4,930 3,890 12,908 1,040 987 r586 '401 28........ -79 9,121 -9,215 101.4 14,923 5,802 3,735 11,188 2,067 862 '1,044 '—182 May 5........ 169 7,558 -7,390 80.1 14,571 7,012 3,715 10,855 3,297 1,040 1,357 -318 12........ 6 9,334 -9,329 104.7 15,058 5,724 3,642 11,416 2,082 1,777 997 780 19........ 39 8,555 -8,523 95.1 14,756 6,201 3,426 11,330 2,775 1,336 1,124 212 26........ 87 8,197 -8,124 92.3 14,060 5,863 3,425 10,635 2,438 1,037 1,099 -62 5 in City of Chicago 1976—Apr. 7........ -11 5,231 -5,242 330.0 5,816 585 542 5,274 458 r 163 '294 14........ 2 6,202 -6,215 380.2 6,695 493 460 6,235 533 r258 '274 21........ -21 6,184 -6,224 382.0 6,843 659 644 6,199 412 r223 '188 28........ 12 4,722 -4,710 304.5 5,503 781 781 4,722 397 r643 '-246 May 5........ 19 4,594 -4,575 286.4 5,375 781 781 4,594 457 550 -93 12........ 17 4,960 -4,943 319.0 5,715 755 755 4,960 565 503 63 19........ -5 4,873 -4,879 312.6 5,525 651 651 4,873 584 528 56 26........ 40 4,521 -4,481 298.7 5,240 718 713 4,527 437 481 -44 33 others 1976—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 May 5........ 150 2,965 -2,815 36.9 9,196 6,231 2,934 6,261 3,297 583 808 -225 12........ -11 4,374 -4,385 59.6 9,344 4,969 2,887 6.456 2,082 1,212 495 717 19........ 44 3,682 -3,645 49.2 9,231 5,549 2,775 6.456 2,775 753 596 157 26........ 47 3,676 -3,643 49.9 8,820 5,144 2,712 6,108 2,432 600 619 -19 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 □ JUNE 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 5/31/76 date rate 5/31/76 date rate 5/31/76 date3 rate 5/31/76 date rate Boston................ 5Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8Vi 1/19/76 9 New York........... 5Vi 1/19/76 6 6 1/19/76 6Vi 6i/i 1/19/76 7 8i/i 1/19/76 9 Philadelphia........ 5Vi 1/19/76 6 6 1/19/76 6Vi 61/i 1/19/76 7 8 Vi 1/19/76 9 Cleveland............ 5Vi 1/19/76 6 6 1/19/76 6Vi 6% 1/19/76 7 8 Vi 1/19/76 9 Richmond........... 5Vi 1/19/76 6 6 1/19/76 6% 6Vi 1/19/76 7 8i/i 1/19/76 9 Atlanta............... 5% 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8Vi 1/19/76 9 Chicago.............. 5% 1/19/76 6 6 1/19/76 6% 6Vi 1/19/76 7 8i/i 1/19/76 9 St. Louis............. 5Vi 1/23/76 6 6 1/23/76 61/i 6i/i 1/23/76 7 8i/i 1/23/76 9 Minneapolis........ 5Vi 1/19/76 6 6 1/19/76 6% 6% 1/19/76 7 8i/i 1/19/76 9 Kansas City......... 5Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 Dallas................. 5i/i 1/19/76 6 6 1/19/76 6i/i 6Vi 1/19/76 7 8 Vi 1/19/76 9 San Francisco...... 5% 1/19/76 6 6 1/19/76 6Vi 6% 1/19/76 7 8 Vi 1/19/76 9 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955 2Vi 2l/i 1964—Nov. 24. 3 Vi-4 4 1971—Nov. 11................ 434-5 5 30. 4 4 19................ 434 434 1956—Apr. 13.......... 2 Vi-3 2% Dec. 13................ 41/2-434 434 20.......... 23/4-3 2% 1965—Dec. 6. 4 -4Vi 4i/i 17................ 4 Vi-4 % 41/i Aug. 24.......... 2K-3 3 13. 4Vi 4i/i 24................ 41/2 4Vi 31......... 3 3 1967—Apr. 7. 4 -4i/i 4 1973—Jan. 15................ 5 5 1957—Aug. 9......... 3 -3 Vi 3 14. 4 4 Feb. 26............ 5 -5 Vi 5 Vi Nov. 2 1 5 3 .. ...... . 3 3 - V 3 i Vi 3 3% Nov. 2 27 0 . . 4 41 - / 4 2 Vi 4 4 V % i A M p a r r . . 2 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5V 5 i 1 - / 5 2 34 5 5 i V /i i Dec. 2........ 3 3 1968—Mar. 2 1 2 5 . . 4V 5 i-5 4 5 Vi 11................ 53 5 4 * - 4 6 6 534 1958—Jan. 2 2 2. 4 . ....... . 2 2 % % - - 3 3 2 3 % Apr. 2 1 6 9 . . 5 51 -5 /i i/i 5 5 i V /i i June 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -6 Vi 6 6 i/i Mar. 7.......... 2%-3 2% Aug. 16. 51/4-5 Vi 5Vi 15................ 6Vi 6 Vi 2 1 1 3 .. ....... . 2V 2 4 % -2V4 2 2 1 % /4 Dec. 3 1 0 8 . . 5i4 5 - % 5V i 5 5 1 V /4 i July 2................ 7 7 -7^ 7 7i/i Apr. 18........ 134-214 iy4 20. 5Vi 51/i 23................ 7Vi 7i/i May 9......... 1 h m Aug. 15......... l%-2 iy4 1969—Apr. 4, 5 Vi-6 6 1974—Apr. 25................ 7 Vi-8 8 Sept. 12........ m -2 2 8, 6 6 30............... 8 8 23........ 2 2 Dec. 9................ 734-8 734 Oct. 24........ 2 -214 2 1970—Nov. 11, 5%-6 6 16................ 734 734 Nov. 7........ 2Vi 2^ 13, 5%-6 534 16, 53/4 53/4 1975 Jan. 6................ 71/4-73/4 734 1959—Mar. 6........ 2Vi-3 3 Dec. 1 5Vi-5y4 53/4 10................ 71/4-734 71/4 16........ 3 3 4, 5%-5% 5 Vi 24................ 714 71/4 May 29........ 3 -3 Vi 3}i 11 5i/i 51/i Feb. 5................ 634-714 6% J S u e n p e t. 1 1 2 1 . . . . . . . . . . . . . . . . 3 V 3 i V -4 i 4 3 % 1971—Jan. 8 51/4-5 Vi 51/4 Mar. 1 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61/ 6 4 3 - 4 634 6f1//i4 18........ 4 4 15. 51/4 51/4 14................ 614 61/4 1960—June 1 3 0. . . . . . . . . . . . . . . . 3 3 V fc i - - 4 4 4 3I V*i 2 2 1 9 2 9 5 5 - - 5 5 1 1 / / 4 4 5 5 51/4 May 2 1 3 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 -61/4 6 6 1 4 3 Vi Feb. 13 43/4-5 5 1976 Jan. 19................ 5Vi-6 5% S A e u p g t . . 1 9 2. . . . . . . . . . . . . . . . 3 3 —3Vi 3 July 1 1 6 9 43/ 4 4 ! - 4 5 5 434 23................ 5i/i 5i/i 1963—July 17........ 3 -3% 3 Vi 23 5 5 In effect May 31, 1976--- 5Vi 5Vi 26........ 3 Vi 3i/i 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
JUNE 1976 d 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............ 16^ 12 4 1966—July 14,21........ 4 4 5 Sept. 8,15........ 6 1967—Mar. 2............. 3% Mar. 16........... 3 ?* 1968—Jan. 11,18........ 16Vi 17 12 1969—Apr. 17............ 17 17% 12% \TA 1970—Oct. 1.............. 5 Beginning Nov. 9, 1972 Net demand2,4 Time 3 Other time Effective date 0-5, maturing in— Over 55, maturing in— 0-2 2-10 10-100 100- Over Savings 400 400 180 180 30-179 days to 4 years 30-179 days to 4 years days 4 years or more days 4 years or more 1972—Nov. 9.................. 8 10 12 6 16 % 17 % 73 73 75 Nov. 16................ 13 1973—July 19................. 10 % 12 'A 13 % 18 1974 Dec. 12................ 17 % 6 1 1975—Feb. 13................ 7% 10 12 13 161& Oct. 30................ 2\ 8 1 3 8 1 1976 Jan. 8................... 3 8 2% 82% In effect May 31, 1976.... 7% 10 12 13 16% 3 3 82 % 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 □ JUNE 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..................... 4% Savings deposits................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days.................. 4 4 Vi Less than $100,000: 90 days to 1 year.......... 158 30-89 days.................... 5 5 5 5 1-2 years.................... 5 90 days to 1 year........... 5 Vi 5Vi 5 Vi 5% 2 years or more............ 1-2 Vi years................... 6 6 6 6 Single-maturity: 2Vi years or more.......... 6 Vi 6 Vi 6Vi 6Vi 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'A 5 5V V a i 4 6 - y 6 e a y r e s a r o s r . . m ... o .. r . e .. . . . . . . . . . . . . . . . . . . . (5) m $100,000 or more: Governmental units........ (6) (<o 7V4 30-59 days.................. 5% (3) $100,000 or more............. (3) (3) (3) 60-89 days.................. 5% (3) 90-179 days................. 5% 5Vi 6 (3) 180 days to 1 year........ (3) 1 year or more............. 6V4 (3) 1 For exceptions with respect to certain foreign time deposits, see 5 per cent of its total time and savings deposits. Sales in excess of that Bulletin for Feb. 1968, p. 167. amount were subject to the 6 Vi per cent ceiling that applies to time de 2 Multiple-maturity time deposits include deposits that are automati posits maturing in 2Vi years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 7 Vi 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 6 3 0 0 - -5 8 9 9 d da a y y s s 6 6 V lA i p p e e r r c c e e n nt t l j June 24, 1970 t g i o o v n e r Q n m ce e i n li t n a g l s u o n n it s r a w te e s r e p a p y e a r b m le i t w te e d r e t o c o h n o c l e d rn e sa d v . in E g ff s e c d ti e v p e o s N it o s v . a n 2 d 7, c 1 o 9 u 7 l 4 d , 90-179 days 6% per cent j receive interest rates on time deposits with denominations under $100,000 180 days to 1 year 7 per cent [ May 16, 1973 irrespective of maturity, as high as the maximum rate permitted on such 1 year or more 7Vi per cent] deposits at any Federally insured depositary institution. Rates on multiple-maturity time deposits in denominations of $100,000 Note.—Maximum rates that may be paid by member banks are estab or more were suspended July 16, 1973, when the distinction between lished by the Board of Governors under provisions of Regulation Q; single- and multiple-maturing deposits was eliminated. however, a member bank may not pay a rate in excess of the maximum 4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not rate payable by State banks or trust companies on like deposits under apply to time deposits representing funds contributed to an Individual the laws of the State in which the member bank is located. Beginning Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 5 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates commercial banks, as established by the FDIC, have been the same as maturing in 4 years or more with minimum denominations of $1,000. those in effect for member banks. The amount of such certificates that a bank could issue was limited to For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 40 50 1945—Feb. 5 July 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31. 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 16. 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 1955—Jan. 3. 50 50 1955—Jan. Apr. 22. 60 60 Apr. 1958—Jan. '1"5 . 70 70 1958—Jan. Aug. 4. 50 50 Aug. Oct. 15. 70 70 Oct. 1960—July 27. 90 90 1960—July 1962—July 9. 70 70 1962—July 1963—Nov. 5. 50 50 1963—Nov. 1968—Mar. 10. 70 70 1968—Mar. 11 June 7.. 70 50 70 June 8 1970—May 5.. 80 60 80 1970—May 6 1971—Dec. 3 .. 65 50 65 1971—Dec. 1972—Nov. 22.. 55 50 55 E 19 ff 7 e 2 c — tiv N e o J v a . n. 3, 1974. 1974—Jan. 2... 6 5 5 0 5 5 0 0 6 5 5 0 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
JUNE 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 year 2 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur sales tions pur sales shifts, or sales maturity pur sales maturity pur sales maturity chases chases redemp shifts chases shifts chases shifts tions 1970.. 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 1971.. 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 1972.. 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1974. 11,660 5,830 4,550 450 -1,314 797 -697 434 1,675 196 205 1975. 11,562 5,599 6,431 3,886 -3,553 2,863 4,275 1,510 -4,697 1,070 848 1975—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 ’io9 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 1,239 600 110 100 73 Feb.. 1,664 389 -1,153 177 174 63 59 200 Mar.. 1,069 511 600 349 185 107 -349 63 24 Apr.. 2,869 1,355 1,000 72 249 70 -72 51 38 Matched sale-purchase Repurchase Federal agency obligations Bankers Total outright1 transactions agreements Net acceptances, (U.S. Govt, (U.S. Govt, change net securities) securities) in U.S. Outright Repur Net Period Govt, chase change 3 securi agree Repur Gross Gross Gross ties Gross Sales or ments, chase pur Gross Redemp Gross pur pur Gross pur redemp net Out agree chases sales tions sales chases chases sales chases tions right ments 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 8,076 485 101 22 181 8,866 1972........... 10,142 6,467 2,862 23,319 23,319 31,103 32,228 -312 1,197 370 -88 -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—Apr... 3,189 318 506 12,375 12,216 12,774 8,551 6,428 2 883 24 496 7,829 May.. 953 354 407 2,996 3,044 19,489 21,952 -2,224 97 -567 55 -375 -3,207 June.. 1,217 161 450 12,914 13,026 15,219 16,810 -873 6 -255 -62 -121 -1,317 July.. 1,505 800 15,532 15,139 5,977 6,146 -2,866 2 -61 3 -2,926 Aug... '”2*574 282 2,389 14,234 13,730 8,146 6,881 663 353 40 90 -1 156 1,222 Sept... 2,940 200 19,931 19,835 16,664 14,857 4,451 394 1 203 14 94 5,155 Oct... 1,263......766 400 15,886 16,113 13,699 13,838 186 284 -124 49 50 445 Nov. . 1,693 652 919 14,442 15,207 14,342 17,275 -2,047 -169 -21 -300 -2,537 Dec... 2,281 200 10,559 10,058 8,464 7,247 2,797 118 15 385 3,315 1976—Jan.. . 563 1,239 600 11,407 11,503 18,135 14,919 2,037 239 187 5 98 2,567 Feb... 2,003 200 7,551 7,957 17,753 20,943 -982 297 -236 -70 -109 -1,101 Mar. . 1,380 618 600 12,697 12,082 16,000 14,783 763 217 -138 -31 812 Apr... 3,233 1,425 1,000 15,138 14,899 17,456 15,963 2,061 -155 -50 162 2,019 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 □ JUNE 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 1975 May 26 May 19 May 12 May 5 Apr. 28 May 31 Apr. 30 May 31 Assets Gold certificate account........................... 11,598 11,599 11,599 11,599 11,599 11,598 11,599 11,620 Special Drawing Rights certificate account. 500 500 500 500 500 500 500 500 Cash............................................. 349 343 339 325 337 357 342 366 Loans: Member bank borrowings............ 644 541 258 41 246 397 31 24 Other........................................ Acceptances: Bought outright.......................... 435 461 481 488 486 439 490 744 Held under repurchase agreements. 280 420 237 226 323 436 505 121 Federal agency obligations: Bought outright.......................... 6,827 6,607 6,607 6,607 6,607 6,827 6,607 5,091 Held under repurchase agreements. 105 150 85 72 196 154 132 316 U.S. Govt, securities: Bought outright: Bills....................... 37,096 36,350 36,672 36,776 36,379 36,650 37,004 37,411 Certificates—Special. Other.. Notes..................... 44,856 44,856 44,941 44,941 44,940 44,856 44,941 42,038 Bonds.................... 6,001 6,001 5,916 5,916 5,916 6,001 5,916 4,413 Total bought outright1................ 87,953 87,207 87,529 87,633 87,235 87,507 87,861 83,862 Held under repurchase agreements. 2,000 3,080 2,103 2,128 4,142 3,105 3,953 1,760 Total U.S. Govt, securities. 89,953 90,287 89,632 89,761 91,377 90,612 91,814 85,622 Total loans and securities................ 98,244 98,466 97,300 97,195 99,235 98,865 99,579 91,918 Cash items in process of collection... p 7,831 8,980 8,586 9,121 8,266 p 5,879 6,375 6,326 Bank premises............................... 341 340 339 340 338 343 337 284 Operating equipment....................... 18 19 18 18 18 18 18 2 Other assets: Denominated in foreign currencies. 934 928 936 936 936 938 932 4 All other................................... 2,527 2,255 3,092 3,243 3,059 2,589 2,993 2,694 Total assets. p 122,342 123,430 122,709 123,277 124,288 p121,087 122,675 113,714 Liabilities F.R. notes................................... 78,023 77,900 78,127 77,594 77,130 77,999 76,898 70,852 Deposits: M U. e S m . b T e r r e a b s a u n r k y — re G se e r n v e e r s a . l . .. a .. c . c .. o .. u . n .. t . . p 2 7 6 , , 6 4 5 7 5 0 2 7 7 , , 8 6 6 3 1 2 2 5 9 , , 7 2 9 5 5 5 2 6 9 , , 0 7 4 0 6 2 2 9 7 , , 0 9 2 7 3 3 p 2 6 7 , , 7 1 4 1 5 5 2 9 7 , , 8 1 0 4 6 0 2 7 6 , , 0 4 3 45 6 Foreign.................................... 251 230 332 298 287 303 305 310 Other: All other 2........................... 941 588 679 762 1,159 Total deposits. * 35,317 36,241 35,970 36,841 38,024 v 34,842 38,013 34,950 Deferred availability cash items......... 5,567 5,953 5,405 5,781 5,687 4,746 4,308 4,516 Other liabilities and accrued dividends. 1,122 1,138 1,124 1,096 1,119 1,117 1,091 1,099 Total liabilities. p 120,029 121,232 120,626 121,312 121,960 p 118,704 120,310 111,417 Capital accounts Capital paid in..................................................... 953 952 947 946 946 953 947 908 Surplus............................................................... 929 929 929 929 929 929 929 897 Other capital accounts.......................................... 431 317 207 90 453 501 489 492 Total liabilities and capital accounts....................... p 122,342 123,430 122,709 123,277 124,288 122,675 113,714 Marketable U.S. Govt, securities held in custody for foreign and international accounts....................... 45,512 46,349 45,723 45,624 45,384 45,867 45,603 40,502 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)........ 82,998 82,788 82,614 82,488 82,446 83,093 82,456 75,777 Collateral held against notes outstanding: Gold certificate account........................... 11,596 11,596 11,596 11,584 11,597 11,596 11,546 9,876 Special Drawing Rights certificate account. 302 302 302 302 302 302 302 190 Acceptances........................................... U.S. Govt, securities............................... 73,035 72,735 73,595 72,680 72,580 73,035 72,680 69,850 Total collateral. 84,933 84,633 85,493 84,566 84,479 84,933 84,528 79,916 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 May 26 May 19 May 12 May 5 Apr. 28 May 31 Apr. 20 May 31 644 542 258 41 246 397 30 23 Within 15 days.................................................. 642 539 254 39 244 390 27 20 16-90 days........................................................ 2 3 4 2 2 7 3 3 91 days to 1 year............................................... Acceptances—Total.............................................. 715 881 718 714 809 875 995 865 Within 15 days.................................................. 343 500 316 291 379 515 556 229 16-90 days........................................................ 186 193 199 206 235 183 226 394 186 188 203 217 195 177 213 242 89,953 90,287 89,632 89,761 91,377 90,612 91,814 85,622 Within 15 days1................................................ 5,981 7,064 7,447 6,885 8,412 5,218 7,515 5,087 16-90 days........................................................ 18,257 17,392 14,771 15,274 16,781 19,637 17,358 21,911 91 days to 1 year............................................... 25,570 25,686 24,697 24,885 23,395 25,612 24,224 20,117 27,496 27,496 30,570 30,570 30,642 27,496 30,570 28,463 8,088 8,088 7,671 7,671 7,671 8,088 7,671 6,957 Over 10 years.................................................... 4,561 4,561 4,476 4,476 4,476 4,561 4,476 3,087 Federal agency obligations—Total.......................... 6,932 6,757 6,692 6,679 6,803 6,981 6,739 5,407 .Within 15 days1................................................ 277 257 129 72 238 326 174 390 98 208 270 315 273 199 273 189 91 days to 1 year............................................... 1,004 962 962 962 962 903 962 529 3,356 3,255 3,255 3,255 3,255 3,356 3,255 2,529 5-10 years........................................................ 1,504 1,422 1,422 1,422 1,422 1,504 1,422 1,209 693 653 654 653 653 693 653 561 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—Apr.......................... 22,705.7 10,810.3 4,770.6 11,895.4 7,124.9 127.5 330.3 114.3 81.8 68.8 May........................ 22,738.6 10,826.1 4,852.6 11,912.5 7,059.9 128.9 333.9 120.1 82.8 68.2 June........................ 22,503.5 10,612.2 4,756.7 11,891.3 7,134.6 124.4 328.6 114.2 80.0 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 J15.4 82.9 70.3 Feb.......................... 25,524.9 12,212.0 5,321 .1 13,312.9 7,991.8 140.9 375.4 128.0 89.6 74.6 Mar......................... *•26,475.0 12,629.6 r5,561.5 r13,845.4 '8,283.9 144.6 377.5 131.4 92.5 77.2 Apr.......................... 25,777.3 12,482.8 5,282.1 13,294.5 8,012.4 140.3 374.9 124.1 88.4 74.3 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 □ JUNE 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi M2 Mz Mi Mb Mi M2 Mi Mi Mi Composition of:measures is described inthe 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-—Apr.......................... 284.9 626 J 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 1,147.1 291.7 649.5 1,062.8 732.2 1,145.5 293.4 655.8 1,075.8 736.7 1,156.6 292.3 653.2 1,070.4 736.9 1,154.1 Nov......................... 295.6 662.1 1,086.5 743.9 1,168.3 297.4 660.2 1,080.6 743.0 1,163.5 Dec.......................... 294.8 664.3 1,092.9 747.2 1,175.8 303.2 669.3 1,094.6 752.8 1,178.1 1976- 295.1 670.2 1,103.7 749.4 1,182.9 301.0 675.3 1,107.1 753.7 1,185.6 Feb.. i..................... 296.5 678.5 1,117.2 753.8 1,192.6 292.9 675.3 1,113.3 748.4 1,186.3 Mar......................... 298.0 683.4 1,127.3 756.5 1,200.5 295.2 683.3 1,129.0 755.1 1,200.8 Apr.......................... 301.7 691.9 1,141.3 763.4 1,212.7 303.3 696.7 1,149.7 766.1 1,219.1 Note.—Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). b p a ro M n c k e i s : s s o A t o h v f e e c r r a o t g l h l e e a s c n t o io d f n o d m a a n i e l d s y t i F f c i . g R i u n . r t e e f s r l o b f a a o t n r ; k ( ( 2 1 a ) ) n f d d o e r m U ei . a g S n n . d d G e d o m e v p a t o . n , s d i l t e s b s a s o l f a c n a c s c o h e m s i m t a e t m e r F s c . i R i a n l . M M Fo k t r : : a M M d z 2 e p s p c l l u u ri s s p l t l a i a o r r g n g e e o n n f e e t g g h o o e t t i l i a a a b t b e l l s e e t C C re D D vi ’ ’ s s s . i . ons in Mi, M2, Mz, M\, and Mi, see Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of “Revision of Money Stock Measures” on pp. 82-87 of the Feb. 1976 commercial banks. Bulletin. Beginning Oct. 1975, money stock measures and related data M2: Averages of daily figures for Mi plus savings deposits, time de have been revised to incorporate Benchmark Data from the Dec. 31, 1975, posits open account, and time certificates of deposit other than negoti call report. able CD’s of $100,000 of large weekly reporting banks. Latest monthly and weekly figures are available from the Board’s H.6 Mt: M2 plus the average of the beginning and end-of-month deposits 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—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 82.7 357.7 440.4 413.3 3.9 Oct.. 72.6 220.8 80.9 362.4 443.3 420.0 72.5 156.6 60.3 219.9 83.7 360.8 444.5 417.2 3.4 Nov. 73.4 222.1 81.8 366.5 448.3 424.4 73.9 159.0 61.4 223.5 82.9 362.8 445.6 420.4 3.5 Dec. 73.7 221.0 82.9 369.6 452.4 428.6 75.1 162.1 62.6 228.1 83.5 366.2 449.6 425.3 4.1 1976—Jan.. 74.2 220.8 79.2 375.2 454.4 433.5 73.8 162.0 62.1 227.2 78.5 374.3 452.8 431.9 3.8 Feb. 75.1 221.5 75.4 381.9 457.3 438.8 74.1 155.7 59.9 218.8 73.0 382.5 455.5 438.0 4.5 Mar. 75.7 222.3 73.2 385.4 458.5 444.0 75.1 156.8 60.2 220.1 71.8 388.1 459.9 445.7 3.9 Apr. 76.7 225.0 71.4 390.2 461.6 449.4 76.3 161.7 62.3 227.0 69.4 393.4 462.8 453.0 3.8 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above. mutual savings banks, for savings capita] at savings and loan associations, and for credit union shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non Total bor Re Avail Demand Demand rowed quired able 2 Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1973—Dec.... 34.98 33.69 34.68 32.78 442.8 279.7 158.1 5.0 447.5 278.5 164.0 5.0 449.4 454.0 1974—Dec. i.. 36.63 35.90 36.37 34.42 486.9 322.9 160.6 3.4 491.8 321.7 166.6 3.5 495.3 500.1 1975—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.i. . 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 r5l5.6 r512.2 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 r516.0 *•514.7 Apr— 34.02 33.98 33.87 31.87 509.8 340.2 167.2 2.5 511.9 340.2 168.8 2.9 517.3 519.4 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 industrial and and industrial3 invest Plus U.S. invest Plus U.S. ments 1 Total1 loans Plus Treas Other4 ments 1 Total1 loans Plus Treas Other4 sold2 Total loans ury sold 2 Total loans ury sold 2 sold 2 1971—Dec. 31__ 485.7 320.9 323.7 116.1 117.7 60.6 104.2 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31__ 558.0 378.9 381.5 130.2 131.9 62.6 116.5 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31__ 633.4 449.0 453.3 156.4 159.0 54.5 129.9 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Dec. 315... 690.4 500.2 505.0 183.3 186.0 50.4 139.8 705.6 510.7 515.5 186.8 189.6 54.5 140.5 1975—June 30.... 705.0 490.8 495.5 176.7 179.6 71.5 142.7 709.3 497.2 501.9 179.0 181.9 68.2 143.9 July 30__ 705.8 489.9 494.4 176.7 179.5 72.3 143.6 703.9 491.1 495.6 176.7 179.5 69.4 143.4 Aug. 27__ 709.3 490.2 494.7 176.5 179.3 75.0 144.1 706.1 490.3 494.8 175.3 178.1 72.0 143.8 Sept. 24__ 712.7 491.5 496.0 175.3 178.1 76.7 144.5 712.5 492.8 497.3 175.7 178.5 75.4 144.3 Oct. 29__ 716.3 495.0 499.7 176.1 179.0 76.0 145.3 714.6 493.7 498.4 175.1 178.0 75.9 144.9 Nov. 26__ 722.2 498.5 503.2 176.8 179.6 76.8 146.9 722.4 497.6 502.3 176.2 179.0 79.4 145.4 Dec. 31__ 721.1 496.9 501.3 175.6 178.1 79.4 144.8 737.0 507.4 511.8 179.0 181.5 84.1 145.5 1976—Jan. 28*>... 723.3 497.3 501.6 176.2 178.7 81.0 145.0 721.4 492.6 496.9 174.0 176.5 84.8 144.0 Feb. 25*... 726.7 497.8 502.3 174.7 177.4 84.4 144.5 720.8 491.9 496.4 173.1 175.8 85.4 143.6 Mar. 31*... 731.2 499.7 503.9 171.0 173.6 88.2 143.3 729.6 496.9 501.1 170.9 173.5 89.3 143.5 Apr. 28*. .. 734.5 500.5 504.7 170.1 172.7 90.0 144.0 732.1 496.7 500.9 170.2 172.8 90.2 145.2 May 26p... 737.6 500.6 504.9 170.3 173.0 93.0 144.0 735.1 500.0 504.3 170.4 173.1 90.5 144.6 1 Adjusted to exclude domestic commercial interbank loans. 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: Seasonally adjusted data revised about $400 million as of June 30, 1972 and by about $1.2 billion as of beginning 1968. Not seasonally adjusted data revised beginning July March 31, 1976. 1975. See this Bulletin, p. 554. Back data for 1959-75 available from 4 Farmers Home Administration insured notes included in “Other Banking Section, Division of Research and Statistics; for 1948-58, See. securities” rather than in loans beginning June 30, 1971, when such notes Aug. 1968 Bulletin, pp. A-94—A-97. For description of seasonally totaled about $700 million. adjusted series for total loans and investments, see Dec. 1971 Bulletin, 5 Data beginning June 30, 1974, include one large mutual savings pp. 971-73 and for commercial and industrial loans, see July 1972 Bul bank that merged with a nonmember commercial bank. As of that date letin, p. 683. Data are for last Wed. of month except for June 30 and Dec. there were increases of about $500 million in loans, $100 million in “Other 31; data are partly or wholly estimated except when June 30 and Dec. securities,” and $600 million in “Total loans and investments.” 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 COMMERCIAL BANKS □ JUNE 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 Interbank 3 Other Total Num FRS membership Cash bilities Bor capital ber and FDIC assets 3 and row ac of insurance Total Loans capital Total 3 Demand ings counts6banks l U.S. Other ac De Treas 2 counts4 mand Time Time 5 ury U.S. Other Govt. Last-Wednesday-of-month series7 All commercial banks: 11 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. 31 116,284 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—May 28... 733,690 527,030 65,000141,660114,400 901,280 725,590 32,51011,200 2,950 246,410 432,520 61,700 65,080 14,558 June 30... 747,551 535,493 68,191143,868128,716 930,719 754,324 42,58211,209 3,117 264,027 433,389 62,420 66,557 14,573 July 30... 738,060 525,250 69,400143,410106,840 899,590 723,730 33,18010,830 2,220 243,000 434,500 61,870 66,080 14,583 Aug. 27... 741,630 525,780 72,020143,830104,750 900,870 724,650 31,54010,570 2,830 242,590 437,120 59,920 66,620 14,595 Sept. 24... 743,970 524,270 75,360144,340106,220 906,410 726,840 31,33010,990 3,180 240,570 440,770 61,030 66,980 14,612 Oct. 29... 747,250 526,420 75,940144,890110,670 915,890 736,870 31,90011,210 2,650 247,590 443,520 60,640 67,550 14,628 Nov. 26... 757,450 532,660 79,400145,390123,150 939,310 753,000 34,56011,160 3,530 257,640 446,110 66,780 68,000 14,624 Dec. 31... 775,794 546,172 84,119145,503133,614 964,918 786,252 41,81112,020 3,114 278,692 450,615 60,224 69,125 14,633 1976—Jan, 28*.. 756,630 527,820 84,770144,040112,720 927,140 743,140 32,11011,540 3,790 245,600 450,100 67,250 68,870 14,611 Feb. 28p.. 757,540 528,560 85,420143,560111,470 928,540 741,230 31,56011,370 4,010 242,810 451,480 68,490 69,110 14,624 Mar. 3lPio 767,260 534,530 89,260143,470120,870 934,440 766,680 37,51011,860 2,430 256,930 457,950 63,420 70,070 14,628 Apr. 28*.. 765,550 530,170 90,180145,200113,210 926,370 753,150 32,28010,990 4,120 250,200 455,560 68,480 70,610 14,632 May 26*.. 767,070 531,990 90,470144,610111,740 928,140 755,000 33,62010,530 3,660 247,630 459,560 66,170 71,400 14,632 Members of F.R. System: 1941—Dec. 31... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947—Dec. 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 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 95,598100,098 655,898 526,837 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—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... 552,727 403,137 49,938 99,652 89,743 687,844 546,420 30,980 9,198 1,539 184,225 320,478 56,084 49,900 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... 564,023 405,805 57,471100,747102,103 714,112 564,835 32,064 9,527 2,708 194,492 326,044 60,162 51,199 5,791 Dec. 31... 578,560 416,366 61,519100,675108,489 733,635 590,776 38,56910,015 2,255 210,824 329,113 53,646 52,078 5,788 1976—Jan. 28... 563,387 402,020 61,704 99,663 93,808 705,093 556,274 29,712 9,529 2,908 185,773 328,352 61,022 52,167 5,765 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 5,768 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 5,778 Apr. 28p.. 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 5,775 May 26*.. 567,221 402,436 65,058 99,727 92,340 702,515 561,386 30,676 8,517 2,702 187,097 332,394 59,591 54,450 5,775 Call date series Insured banks: I Total: 1 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 51,836i 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 92,708 572,6821 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 57,961129,625116,266i 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 Dec. 31... 762,400 535,170 83,629143,602128,256■ 944,654• 775,209 40,25910,733 3,108 276,384 433,352 56,775 68,474 14,372 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 67,390 434,810I 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 70,711 489,470i 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 75,686 536,836i 431,646 21,096 6,804 1,723 152,576 242,492 41,954 37,483 4,730 Dec. 31... 441,135 315,738 46,799 78,598 78,026 553,285 447,590 22,305 7,302 1,788 159,840 250,493 40,875 38,969 4,741 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ COMMERCIAL BANKS A15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num FRS membership Cash lia Bor capital ber and FDIC assets 3 bilities row ac of insurance Total Loans U.S. and Total 3 Demand ings counts6 banks l Treas Other capital De Time ury 2 ac mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941—Dec. 31.... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,'739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31.... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 I960—Dec. 31.... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 319... 94,760 66,963 11,196 16,600 25,472125,460101,512 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 29,176150,697123,186 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 29,387166,780131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—Dec. 31.... 140,373108,346 9,846 22,181 30,473181,683144,799 17,565 3,301 746 49,807 73,38013,247 12,425 1,074 1975—June 30. . . 134,759100,968 12,004 21,787 31,466179,787141,995 18,751 2,771 443 48,621 65,65414,380 12,773 1,064 1975—Dec. 31 . .. 137,620100,823 14,720 22,077 30,451180,495143,409 16,265 2,712 467 50,984 67,65612,771 13,105 1,046 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 11,208106,457 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 14,767147,013130,316 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 16,167170,831150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—Dec. 31.... 165,709111,300 15,211 39,199 18,380190,435165,827 1,525 642 1,616 61,240100,804 3,138 14,799 8,436 1975—June 30. . . 173,238113,074 18,223 41,942 18,029198,157172,707 1,397 676 940 60,706108,816 2,976 15,730 8,526 1975-^Dec. 31. .. 183,645118,609 22,109 42,927 19,778210,874184,210 1,689 719 853 65,560115,203 3,128 16,400 8,585 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 529 l,:191 253 13 329 852 1947—Dec. 318... 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 8 2,062 2,857 2,382 611 249 1975—June 30. . . 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 11 2,124 3,320 3,110 570 253 1975—Dec. 31 .. . 13,674 11,283 490 1,902 5,359 20,544 11,323 1,552 1,291 6 2,308 5,115 3,449 651 261 Total nonmember: 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 I157 5,' 504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319... 95,478 59,621 16,342 19,514 12,143110,822 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 13,643129,100112,764 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 16,562154,085134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830104,070 16,783 34,976 18,177179,480155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—Dec. 31.... 175,690119,761 15,530 40,400 21,047204,051 172,454 2,422 1,445 1,624 63,302103,661 5,520 15,410 8,685 1975—June 30. . . 184,963122,633 18,581 43,750 21,563214,434181,021 2,735 1,633 951 62,830112,136 6,086 16,300 8,779 1975—Dec. 31 .. .197,319129,892 22,599 44,829 25,137231,418195,533 3,241 2,010 859 67,868120,318 6,577 17,051 8,846 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 Mar. 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 6 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 □ JUNE 1976 ASSETS BY CLASS OF BANK, DECEMBER 31, 1975 (Assets and liabilities are shown in millions of dollars.) Member banks1 All Insured Large banks Account commercialcommercial Non banks banks member Total New City of Other All other banks1 York Chicago large City Cash, bank balances, items in process...................... 133,614 128,256 108,477 24,778 3,888 43,730 36,081 25,137 Currency and coin............................................. 12,256 12,248 9,243 774 200 3,081 5,188 3,013 26,776 26,776 26,776 3,349 1,433 12,283 9,712 Demand balances with banks in United States...... 34,866 32,091 19,389 6,496 195 3,752 8,947 15,477 Other balances with banks in United States.......... 8,866 7,367 5,184 151 29 1,995 3,008 3,683 Balances with banks in foreign countries.............. 3,598 2,605 2,356 588 27 1,044 696 1,242 Cash items in process of collection...................... 47,251 47,169 45,530 13,421 2,003 21,575 8,531 1,721 Total securities held—Book value........................... 229,622 227,230 162,194 18,499 7,134 53,616 82,945 67,428 U.S. Treasury................................................... 84,119 83,629 61,519 9,005 3,212 21,411 27,892 22,600 Other U.S. Govt, agencies................................... 34,409 33,941 21,186 1,508 485 6,031 13,162 13,223 States and political subdivisions........................... 102,029 101,757 74,079 7,204 3,162 24,679 39,035 27,950 All other securities............................................. 9,065 7,903 5,410 783 275 1,496 2,855 3,655 Trading-account securities.................................. 5,338 5,332 5,182 1,902 563 2,484 232 156 2,982 2,976 2,858 1,072 364 1,315 107 124 Other U.S. Govt, agencies............................... 711 711 698 247 51 351 50 13 States and political subdivisions........................ 1,142 1,142 1,130 357 102 602 70 12 All other....................................................... 502 502 495 227 47 216 5 7 Bank investment portfolios................................. 224,284 221,898 157,012 16.597 6.570 51,132 82,712 67,272 U.S. Treasury................................................ 81,137 80,653 58,661 7,933 2,848 20,096 27,785 22,476 Other U.S. Govt, agencies............................... 33,698 33,230 20,488 1,262 434 5,680 13,112 13,209 States and political subdivisions....................... 100,887 100,614 72,949 6,847 3,060 24,077 38,965 27,938 All other....................................................... 8,563 7,401 4,914 556 229 1,280 2,850 3,649 Federal funds sold and securities purchased under agreements to resell........................................ 39,250 37,323 29,122 2,488 1,520 14,562 10,551 10,129 Commercial banks............................................. 34,099 32,172 24,075 2,080 998 11,094 9,903 10,023 Brokers and dealers........................................... 3,700 3,700 3,646 62 468 2,614 501 53 Others.............................................................. 1,452 1,452 1,400 346 54 854 146 52 Other loans.......................................................... 507,202 497,846 387,439 73,495 22,261 143,701 147,982 119,763 Real estate loans................................................ 134,770 134,588 96,018 8,448 1,371 35,198 51,002 38,752 Secured by farmland....................................... 6,237 6,224 2,702 8 11 302 2,381 3,534 Secured by residential properties...................... 82,307 82,177 59,791 4,138 917 22,650 32,087 22,516 1- to 4-family residences.............................. 76,456 76,331 55,190 3,259 840 20,588 30,503 21,267 5,510 5,493 4,786 238 47 2,619 1,882 724 VA guaranteed....................................... 3,081 3,058 2,610 174 20 1,353 1,063 471 Other..................................................... 67,865 67,780 47,793 2,847 773 16,616 27,557 20,071 Multifamily properties................................. 5,850 5,846 4,601 879 77 2,062 1,584 1,249 FHA insured........................................... 493 492 449 91 24 158 175 44 Other..................................................... 5,358 5,354 4,153 787 53 1,904 1,409 1,205 Secured by other properties............................. 46,226 46,187 33,525 4,302 443 12,245 16,534 12,702 Loans to domestic and foreign banks................... 12,624 9,553 8,686 3,366 584 3,905 831 3,938 Loans to other financial institutions..................... 29,611 29,276 28,088 10,187 4,442 11,199 2,259 1,523 Loans on securities to brokers and dealers............ 7,175 7,055 6,964 4,477 911 1,400 176 210 Other loans for purch./carry securities.................. 3,916 3,822 3,193 415 289 1,560 929 723 Loans to farmers............................................... 20,158 20,129 11,244 94 162 2,564 8,424 8,914 Commercial and industrial loans.......................... 178,959 174,316 145,930 38,553 12,002 55,749 39,626 33,029 Loans to individuals........................................... 106,741 106,019 75,536 4,854 1,717 26,871 42,093 31,205 Instalment loans............................................. 83,594 82,969 58,830 3,153 925 21,178 33,574 24,765 Passenger automobilies................................ 33,790 33,279 21,963 432 163 6,600 14,769 11,827 Residential-repair/modernize........................ 5,859 5,845 4,189 222 36 1,731 2,199 1,670 Credit cards and related plans...................... 12,312 12,311 10,846 1,107 509 6,048 3,181 1,466 Charge-account credit cards...................... 9,501 9,500 8,506 815 478 4,817 2,395 995 Check and revolving credit plans................ 2,811 2,810 2,340 293 31 1,231 785 471 Other retail consumer goods......................... 15,318 15,283 10,615 164 108 3,749 6,594 4,704 Mobile homes......................................... 8,721 8,719 6,276 97 39 2,221 3,919 2,445 Other..................................................... 6,597 6,564 4,338 67 69 1,527 2,675 2,259 Other instalment loans................................. 16,315 16,251 11,217 1,228 109 3,049 6,831 5,098 Single-payment loans to individuals.................. 23,147 23,050 16,706 1,701 792 5,694 8,520 6,441 All other loans.................................................. 13,248 13,087 11,781 3,100 784 5,255 2,643 1,466 Total loans and securities...................................... 776,074 762,400 578,755 94,483 30,915 211,880 241,478 197,319 Fixed assets—Buildings, furniture, real estate........... 17,474 17,390 13,061 1,415 539 5,232 5,875 4,413 Investments in subsidiaries not consolidated............. 2,015 1,993 1,970 835 146 958 31 45 Customer acceptances outstanding.......................... 8,952 8,679 8,424 4,319 249 3,538 318 527 Other assets......................................................... 27,069 25,937 23,093 6,586 1,287 11,117 4,103 3,976 Total assets.......................................................... 965,198 944,654 733,780 132,416 37,024 276,454 287,886 231,418 Number of banks.................................................. 14,633 14,372 5,787 12 9 155 5,611 8,846 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
JUNE 1976 □ COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1975 (Assets and liabilities are shown in millions of dollars.) Mtember bank:si All Insured Large banks Non Account commercialcommercial member banks banks Total All other banks1 New City of Other York Chicago large City Demand deposits.................................................. 323,617 319,751 251,649 54,236 10,378 91,528 95,507 71,968 Mutual savings banks......................................... 1,325 1,160 1,063 494 1 221 347 262 Other individuals, partnerships, and corporations.. 246,559 245,471 187,632 30,546 7,754 70,913 78,419 58,927 U.S. Government.............................................. 3,114 3,108 2,255 139 34 809 1,274 859 States and political subdivisions........................... 18,726 18,595 13,058 779 191 3,867 8,221 5,667 Foreign governments, central banks, etc................ 1,859 1,659 1,610 1,318 18 261 13 248 Commercial banks in United States..................... 33,768 33,453 32,048 14,436 1,868 11,442 4,302 1,720 Banks in foreign countries.................................. 6,719 5,646 5,459 3,906 213 1,212 129 1,259 Certified and officers’ checks, etc.......................... 11,548 10,659 8,523 2,618 299 2,804 2,802 3,025 Time and savings deposits...................................... 462,915 455,458 339,350 45,551 16,302 124,194 153,303 123,565 Savings deposits................................................ 160,087 159,725 114,228 7,061 2,402 40,647 64,118 45,860 Accumulated for personal loan payments2............ 280 280 223 76 146 58 Mutual savings banks........................................ 517 499 490 i95 5 239 52 26 Other individuals, partnerships, and corporations.. 229,414 224,878 168,882 25,975 10,467 61,277 71,163 60,531 U.S. Government.............................................. 573 573 462 75 1 183 203 111 States and political subdivisions........................... 48,113 47,896 34,355 1,114 1,055 15,307 16,879 13,758 Foreign governments, central banks, etc................ 12,424 11,373 11,187 7,216 1,212 2,719 39 1,238 Commercial banks in United States..................... 9,550 9,038 8,379 2,997 1,079 3,612 691 1,171 Banks in foreign countries.................................. 1,957 1,196 1,145 918 80 135 12 812 Total deposits...................................................... 786,532 775,209 590,999 99,788 26,680 215,722 248,810 195,534 Federal funds purchased and securities sold under agreements to repurchase................................... 53,811 52,126 49,305 9,043 6,367 26,601 7,294 4,506 Other liabilities for borrowed money....................... 6,412 4,649 4,342 2,114 25 1,828 374 2,071 Mortgage indebtedness.......................................... 765 763 548 54 16 300 178 217 Bank acceptances outstanding................................ 9,548 9,267 9,012 4,884 252 3,555 321 536 Other liabilities..................................................... 29,964 25,190 20,206 4,605 888 7,715 6,997 9,758 Total liabilities..................................................... 887,033 867,204 674,411 120,489 34,228 255,721 263,974 212,622 Minority interest in consolidated subsidiaries........... 5 4 1 1 4 Total reserves on loans/securities............................ 9,035 8,972 7,293 1,629 482 2,777 2,405 1,742 Reserves for bad debts (IRS).............................. 8,696 8,641 7,078 1,627 482 2,672 2,297 1,619 Other reserves on loans...................................... 150 145 92 1 43 49 57 Reserves on securities........................................ 189 187 123 1 62 60 66 Total capital accounts........................................... 69,125 68,474 52,074 10,298 2,314 17,956 21,506 17,051 Capital notes and debentures.............................. 4,479 4,379 3,494 779 80 1,681 954 985 Equity capital................................................... 64,646 64,095 48,580 9,519 2,235 16,275 20,551 16,066 Preferred stock.............................................. 53 48 28 10 18 25 Common stock.............................................. 15,601 15,495 11,498 2,275 568 3,755 4,900 4,103 Surplus......................................................... 26,775 26,617 19,975 3,848 1,145 7,079 7,902 6,800 Undivided profits........................................... 21,340 21,143 16,562 3,396 472 5,310 7,385 4,777 Other capital reserves...................................... 876 792 516 49 121 346 360 Total liabilities, reserves, minority interest, capital accounts........................................................... 965,198 944,654 733,780 132,416 37,024 276,454 287,886 231,418 Demand deposits adjusted3.................................. 239,484 236,021 171,816 26,241 6,473 57,702 81,401 67,668 Average total deposits (past 15 days)....................... 762,528 753,182 572,278 95,301 25,851 207,553 243,574 190,250 Average total loans (past 15 days)........................... 514,414 505,174 388,589 74,436 21,931 143,973 148,249 125,826 Selected ratios: Percentage of total assets Cash and balances with other banks..................... 13.8 13.6 14.8 18.7 10.5 15.8 12.5 10.9 23.8 24.1 22.1 14.0 19.3 19.4 28.8 29.1 Total securities held........................................... Trading account securities................................ .6 .6 .7 1.4 1.5 .9 .9 .1 U.S. Treasury............................................. .3 .3 .4 .8 1.0 .5 .1 States and political subdivisions.................... . 1 .1 .2 .3 .3 .2 All other trading account securities................ . 1 . 1 .2 .4 .3 .2 Bank investment portfolios.............................. 23.2 23.5 21.4 12.5 17.7 18.5 28.7 29.1 U.S. Treasury............................................. 8.4 8.5 8.0 6.0 7.7 7.3 9.7 9.7 States and political subdivisions.................... 10.5 10.7 9.9 5.2 8.3 8.7 13.5 12.1 All other portfolio securities......................... 4.4 4.3 3.5 1.4 1.8 2.5 5.5 7.3 Other loans and Federal funds sold....................' 56.6 56.7 56.8 57.4 64.2 57.2 55.1 56.1 All other assets................................................. 5.8 5.7 6.3 9.9 6.0 7.5 3.6 3.9 Total loans and securities................................... 80.4 80.7 78.9 71.4 83.5 76.6 83.9 85.3 Reserves for loans and securities.......................... .9 .9 1.0 1.2 1.3 1.0 .8 .8 Equity capital—Total......................................... 6.7 6.8 6.6 7.2 6.0 5.9 7.1 6.9 Total capital accounts........................................ 7.2 7.2 7.1 7.8 6.3 6.5 7.5 7.4 Number of banks................................................. 14,633 14,372 5,787 12 9 155 5,611 8,846 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 WEEKLY REPORTING BANKS a JUNE 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA (In millions of dollars) Loans 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 cial Treas se and tural Pers. banks ury curi indus U.S. U.S. and se ties trial Treas Other Treas Other sales Other curi ury secs. ury secs. finance ties1 secs. secs. cos., etc. Large banks— Total 1975 May 7............. 387,217 17,321 14,191 1,631 868 631279,982125,284 3,470 1,066 2,665 2,343 9,361 20,229 14............. 385.495 17,171 14,052 1,555 842 722278,348124,535 3,475 949 2,664 2.340 9,095 20,156 21............. 384.495 16,230 13,073 1,755 828 574277,881123,737 3,461 894 2,943 2,352 9,110 20,147 28............. 384,955 17,618 14,010 2,276 720 612277,025122,824 3,478 735 3,196 2.340 9,274 20,193 1976 Apr. 7............. 394,198 24,437 17,878 4,792 681 1,086266,967112,726 3,710 1,373 5,173 2.384 8,350 18.041 14............. 390,499 20,535 16,032 2,869 694 940267,020112,411 3,742 1,268 5,353 2,391 8,021 18.074 21............. 388,269 17,494 14,182 1,729 683 900267,191 112,628 3,754 904 5,669 2,371 7,976 18,098 28............. 385,436 17,987 15,192 1,331 573 891266,373112,475 3,770 776 5,454 2,381 7,835 18,138 May 5............. 387,336 18,806 15,881 1,643 637 645267,399113,047 3,790 1,008 5,341 2,367 7,882 18.074 12............. 385,628 18,311 15,343 1,762 600 606266,362112,443 3,808 782 5,320 2.384 7,654 18.042 19............. 386,028 17,145 13,914 1,938 583 710267,175112,243 3,829 900 5,858 2,470 7,880 18,030 26............. 384,378 16,830 13,743 1,797 580 710266,829112,228 3,837 886 5,787 2,428 7,646 17,947 New York City 1975 May 7............. 90,254 1,709 1,550 63 72,939 39,505 122 886 1,883 455 3,231 7,898 14............. 89,771 1,662 1,500 144 72,105 39,163 120 809 1,815 450 3,123 7,886 21............. 90,180 1,942 1,799 119 72,005 38,823 114 813 2,066 467 3,120 7,870 28............. 89,038 1,053 857 172 71,823 38,537 113 588 2,262 459 3,263 7,936 1976 Apr. 7............. 89,028 1,981 945 754 282 68,254 34,609 1,138 3,329 396 2,829 835 2 1 1 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 9 8, ,4 6 6 55 7 2 2 , ,9 4 0 5 5 3 1 1 , , 7 86 8 3 6 4 1 2 0 7 8 49 5 5 5 6 9 6 6687,,916737 3 34 4 , , 2 3 6 9 3 2 1,0 7 5 7 3 7 3 3 , , 4 7 0 3 9 4 3 38 9 5 6 2 2, , 6 6 7 9 1 3 8 8 3 8 3 4 28............. 87,232 1,924 1,297 132 495 66,921 34,146 657 3,549 386 2,640 904 May 5............. 87,342 1,328 874 230 220 67,289 34,199 864 3,353 388 2,668 6,911 12............. 87,452 2,023 1,526 276 217 66,537 33,717 661 3,402 389 2,562 6,916 19............. 89,102 2,580 1,902 339 339 66,871 33,475 815 3,850 389 2,647 6,845 26............. 88,144 2,572 2,045 199 328 66,648 33,604 749 3,818 384 2,514 6,832 Outside New York City 1975 May 7............. 296,963 15,612 12,641 1,535 868 568207,043 85,779 3,348 180 782 6,130 12,331 14............. 295,724 15,509 12,552 1,537 842 578206,243 85,372 3,355 140 849 1,890 5,972 12,270 21............. 294,315 14,288 11,274 1,731 828 455205,876 84,914 3,347 81 877 1,885 5,990 12,277 28............. 295,917 16,565 13,153 2,252 720 440205,202 84,287 3,365 147 934 1,881 6,011 12,257 1976 Apr. 7............. 305,170 22,456 16,933 4,038 681 804198,713 78,117 3,629 235 1,844 1,988 5,521 11,206 14............. 301,844 18,082 14,246 2,761 694 381 198,847 78,019 3,661 215 1,944 1.995 5,328 11,241 21............. 298,802 14,589 12,319 1,302 634 334 199,224 78,365 3,676 127 1,935 1,986 5,305 11,214 28............. 298,204 16,063 13,895 1,199 573 396199,452 78,329 3,692 119 1,905 1.995 5,195 11,234 May 5........... 299,994 17,478 15,007 1,413 633 425200,110 78,848 3,713 144 1,988 1,979 5,214 11,163 12........... 298,176 16,288 13,817 1,486 596 389199,825 78,726 3,730 121 1,918 1.995 5,092 11,126 19........... 296,926 14,565 12,012 1,599 583 371200,304 78,768 3,751 85 2,008 2,081 5,233 11,185 26........... 296,234 14,258 11,698 1,598 580 382200,181 78,624 3,758 137 1,969 2,044 5,132 11,115 A Effective with changes in New York State branch banking laws, reported data for “Outside New York City” (total assets, by about $4.0 beginning Jan. 1,1976, three large New York City banks are now reporting billion). combined totals for previously affiliated banks that have been converted Historical data (from Jan. 1972) on a basis comparable with 1976 data to branches. are available from the Public Information Department of the Federal The principal effects of these changes were to increase the reported data Reserve Bank of New York on request. for New York City (total assets, by about $5.5 billion) and to decrease the For other notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 a WEEKLY REPORTING BANKS A19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS A —Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer Notes and bonds cial banks maturing— Obligations Other bonds, 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 other6 Large banks- Total 1975 2,615 5,387 34,105 1,435 18,116 5,736 29,426 5,962 4,064 15,932 3,468 60,488 6,170 39,780 2,381 12,157 7 2,459 5,271 34,147 1,229 18,131 5,735 29,623 6,061 4,203 15,920 3,439 60,353 5,970 39,526 2,414 12,443 ,14 2,392 5,289 34,124 1,328 18,176 5,724 29,906 5,900 4,241 16,135 3,630 60,478 6,101 39,708 2,431 12,238 .21 2,200 5,377 34,142 1,348 17,948 5,741 30,347 5,778 4,326 16,647 3,596 59,965 5,981 39,662 2,396 11,926 .28 1976 1,998 5,074 35,582 1,765 18,152 8,211 43,967 14,368 6,039 21,080 2,480 58,827 5,488 39,593 2,352 11,394 7 2,009 5,185 35,725 1,801 18,359 8,276 44,039 14,320 6,187 20,933 2,599 58,905 5,642 39,571 2,390 11,302 .14 1,958 5,020 35,767 1,864 18,414 8,259 43,651 14,122 6,265 20,733 2,531 59,933 6,386 39,848 2,386 11,313 .21 1,867 4,948 35,891 1,893 18,246 8,305 41,406 11,986 6,160 20,766 2,494 59,670 6,110 39,812 2,369 11,379 .28 1,990 5,045 35,937 1,874 18,357 8,286 42,052 12,413 6,397 20,763 2,479 59,079 5,986 39,628 2,393 11,072 5 1,982 5,269 36,013 1,895 17,997 8,351 42,087 12,652 6,400 20,535 2,500 58,868 5,984 39,438 2,405 11,041 12 2,034 5,238 36,097 1,745 17,918 8,412 42,140 12,343 6,447 20,620 2,730 59,568 6,322 39,927 2,366 10,953 .19 2,028 5,241 36,204 1,807 17,795 8,425 41,454 12,228 6,547 19,978 2,701 59,265 6,323 39,705 2,364 10,873 .26 New York City 1975 1,288 2,535 3,550 676 3,779 1,722 6,257 1,239 523 3,523 972 9,349 1,634 5,296 179 2,240 1,216 2,399 3,555 553 3,906 1,727 6,679 1,489 628 3,513 1,049 9,325 1,606 5,246 177 2,296 .14 1,163 2,383 3,563 608 3,896 1,728 6,767 1,339 626 3,761 1,041 9,466 1,669 5,385 175 2,237 .21 1,092 2,447 3,551 617 3,822 1,736 6,868 1,191 672 3,985 1,020 9,294 1,569 5,374 178 2,173 .28 1976 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 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 .28 675 2,140 3,723 639 3,955 1,643 9,469 3,047 850 4,932 640 9,256 1,467 6,036 213 1,540 5 659 2,382 3,727 638 3,730 1,654 9,612 3,353 881 4,740 638 9,280 1,512 5,863 260 1,645 .12 694 2,296 3,777 614 3,640 1,669 9,889 3,234 1,057 4,874 724 9,762 1,810 6,172 195 1,585 .19 675 2,243 3,784 650 3,568 1,679 9,402 3,199 1,136 4,399 668 9,522 1,743 6,107 192 1,480 .26 Outside New York City 1975 1,327 2,852 30,555 759 14,337 4,014 23,169 4,723 3,541 12,409 2,496 51,139 4,536 34,484 2,202 9,917 1,243 2,872 30,592 676 14,225 4,008 22,944 4,572 3,575 12,407 2,390 51,028 4,364 34,280 2,237 10,147 .14 1,229 2,906 30,561 720 14,280 3,996 23,139 4,561 3,615 12,374 2,589 51,012 4,432 34,323 2,256 10,001 .21 1,108 2,930 30,591 731 14,126 4,005 23,479 4,587 3,654 12,662 2,576 50,671 4,412 34,288 2,218 9,753 .28 1976 1,397 2,743 31,847 1,177 14,168 6,606 33,922 10,788 5,171 16,054 1,909 50,079 4,628 33,476 2,159 9,816 7 1,318 2,815 32,001 1,167 14,285 6,682 34,763 11,278 5,351 16,182 1,952 50,152 4,741 33,475 2,150 9,786 .14 1,262 2,824 32,037 1,210 14,328 6,654 34,347 10,939 5,436 16,105 1,867 50,642 4,914 33,714 2,174 9,840 .21 1,331 2,902 32,154 1,252 14,412 6,699 32,485 9,215 5,334 16,087 1,849 50,204 4,619 33,680 2,154 9,751 .28 1,315 2,905 32,214 1,235 14,402 6,643 32,583 9,366 5,547 15,831 1,839 49,823 4,519 33,592 2,180 9,532 5 1,323 2,887 32,286 1,257 14,267 6,697 32,475 9,299 5,519 15,795 1,862 49,588 4,472 33,575 2,145 9,396 .12 1,340 2,942 32,320 1,131 14,278 6,743 32,251 9,109 5,390 15,746 2,006 49,806 4,512 33,755 2,171 9,368 ,19 1,353 2,998 32,420 1,157 14,227 6,746 32,052 9,029 5,411 15,579 2,033 49,743 4,580 33,598 2,172 9,393 .26 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 WEEKLY REPORTING BANKS □ JUNE 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 assetsI Domestic Wednesday process with and do sidiar assets total States inter!>ank of F.R. coin mestic ies not liabil- and collec Banks banks consol tites1 polit For tion idated ical U.S. eign Total IPC sub Govt. Com Mutual govts., divi mer sav etc. 3 sions cial ings Large banks— Total 1975 May 7.................... 30,063 21,342 4,347 12,033 1.741 35,492492,235156,082111,954 6,168 1,669 22,779 885 1,300 14.................... 33,061 23,225 4,728 11,812 1.741 35,247495,309157,622116,972 6,011 1,100 21,235 686 1,025 21.................... 30,532 25,842 4,701 11,421 1,765 34,420493,176154,826113,779 6,015 1,476 20,758 689 1,062 28.................... 35,893 23,312 4,993 11,787 1,735 35,757498,432161,862117,952 5,949 1,430 22,676 780 1,208 1976 Apr. 7.................... 32,805 18,481 4,780 12,652 2,031 40,938 505,885164,032119,286 5,699 1,233 24,262 843 1,122 14.................... 36,610 22,227 5,276 12,363 2,052 42,922 511,949168,597124,478 5,933 1,409 22,860 777 1,009 21.................... 33,787 22,426 5,403 11,384 2,050 41,920 505,239165,549121,487 5,732 3,546 21,823 765 939 28.................... 33,587 21,281 5,510 11,599 2,044 42,158501,615162,628118,064 6,003 2,442 21,981 744 1,275 May 5.................... 34,410 23,238 4,710 12,529 2,049 43,776508,048 164,974117,561 6,548 2,962 23,953 838 1,322 12.................... 34,536 22,844 5,274 11,538 2,062 43,649505,531 161,914118,472 5 ^ 954 1,663 21,929 710 1,103 19.................... 33,153 21,026 5,202 11,805 2,116 42,397501,727159,830116,487 5,854 2,729 21,990 707 1,046 26.................... 32,972 19,984 5,497 11,951 2,143 43,467 160,626116,082 5,968 1,968 23,020 686 1,115 New York City 1975 May 7.................... 10,780 7,849 649 5,358 801 12,343128,034 46,152 25,942 558 195 11,257 555 1,093 14.................... 12,151 7,428 659 5,087 810 12,042127,948 45,900 27,786 660 133 9,988 386 844 21.................... 10,925 8,364 682 4,761 810 11,407127,129 45,321 26,848 614 195 9,878 391 882 28.................... 12,667 8,500 702 4,983 787 12,389129,066 48,195 28,016 570 271 10,662 466 1,024 1976 Apr. 7.................... 10,975 5,948 766 5,206 866 13,713126,502 46,167 26,470 475 101 11,005 476 901 14.................... 12,781 6,447 747 5,039 866 14,460128,995 48,307 28,574 516 147 10,713 431 800 21.................... 10,388 5,602 776 4,377 869 13,923125,402 46,246 27,604 588 690 9,890 408 727 28.................... 12,165 6,678 829 4,824 867 13,927126,522 48,189 27,333 558 453 10,843 405 1,039 May 5.................... 11,394 7,723 746 4,870 870 14,477127,422 47,122 26,567 617 579 11,022 448 1,099 12.................... 11,950 6,664 753 4,902 871 14,691 127,283 46,033 25,963 575 296 10,403 362 886 19.................... 11,121 4,714 730 5,321 932 13,826125,746 45,609 26,605 581 403 10,397 367 829 26.................... 11,943 4,467 763 5,517 927 15,137126,898 47,800 26,696 574 373 11,617 370 881 Outside New York City 1975 May 7.................... 19,283 13,493 3,698 6,675 940 23,149364,201109,930 86,012 5,610 1,474 11,522 330 207 14.................... 20,910 15,797 4,069 6,725 931 23,205367,361111,722 89,186 5,351 967 11,247 300 181 21.................... 19,607 17,478 4,019 6,660 955 23,013366,047109,505 86,931 5,401 1,281 10,880 298 180 28.................... 23,226 14,812 4,291 6,* 948 23,368369,366113,667 89,936 5,379 1,159 12,014 314 184 1976 Apr. 7.................... 21,830 12,533 4,014 7,446 1,165 27,225379,383117,865 92,816 5,224 1,132 13,257 367 221 14.................... 23,829 15,780 4,529 7,324 1,186 28,462382,954120,290 95,904 5,417 1,262 12,147 346 209 21.................... 23,399 16,824 4,627 7,007 1,181 27,997379,837119,303 93,883 5,144 2,856 11,933 357 212 28.................... 21,422 14,603 4,681 6,775 1,177 28,231375,093114,439 90,731 5,445 1,989 11,138 339 236 May 5.................... 23,016 15,515 3,964 7,659 1,179 29,299380,626117,852 90,994 5,931 2,383 12,931 390 223 12.................... 22,586 16,180 4,521 6,636 1,191 28,958378,248115,881 92,509 5,379 1,367 11,526 348 217 19.................... 22,032 16,312 4,472 6,484 1,184 28,571375,981114,221 89,882 5,273 2,326 11,593 340 217 26.................... 21,029 15,517 4,734 6,434 1,216 28,330373,494112,826 89,386 5,394 1,595 11,403 316 234 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ WEEKLY REPORTING BANKS A21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-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 5,014 6,313 224,586 63,104 113,645 25,430 8,171 12,345 49,456 2 3,672 23,213 35,224 7 5,013 5,580 226,032 63,390 114,860 25,425 8,053 12,467 49,732 5 3,675 23,083 35,160 4,670 6,377 226,164 63,771 114,395 25,683 8,092 12,453 49,649 711 3,585 23,168 35,073 .21 4,681 7,186 225,491 64,092 113,745 25,543 8,011 12,541 49,108 459 3,256 23,141 35,115 .28 1976 5,163 6,424 224,592 79,066 106,703 21,407 7,696 8,150 54,949 27 3,701 19,848 38,736 7 5,196 6,935 223,380 78,813 105,820 21,707 7,579 7,917 56,870 312 3,747 20,271 38,772 5,138 6,119 222,198 79,183 104,391 21,776 7,390 7,903 54,533 142 3,398 20,650 38,769 5,155 6,964 221,616 79,349 104,228 21,660 7,301 7,555 54,273 206 3,504 20,496 38,892 .28 5,435 6,355 221,987 79,921 104,399 21,334 7,110 7,724 57,232 20 3,480 21,378 38,977 5 5,300 6,783 221,635 80,167 104,087 21,205 6,797 7,881 58,270 241 3,531 20,924 39,016 .12 5,249 5,768 221,719 80,370 104,067 21,083 6,658 8,015 55,516 505 3,837 21,206 39,114 .19 4,832 6,955 222,797 80,166 104,981 21,162 6,852 8,059 51,741 598 3,768 21,579 39,283 .26 New York City 1975 3,714 2,838 48,924 7,095 27,103 1,840 3,696 7,796 13,598 1,259 8,499 9,602 7 3,668 2,435 48,960 7,158 27,122 1,811 3,649 7,876 13,718 1,264 8.505 9,601 .14 3,442 3,071 48,488 7,205 26,702 1,859 3,629 7,778 13,328 685 1,224 8.506 9,577 .21 3,370 3,816 47,999 7,248 26,354 1,794 3,611 7,894 13,900 62 1,077 8,238 9,595 .28 1976 3,913 2,826 43,348 9,070 23,609 1,438 3,139 5,072 15,190 1,812 9,026 10,959 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 4,069 2,721 42,588 9,211 23,218 1,371 2,920 4,931 15,422 1,677 9,580 11,033 5 3,933 3,615 42,289 9,216 23,011 1,343 2,730 5,042 16,630 240 1,729 9,318 11,044 .12 3,890 2,537 42,520 9,274 23,184 1,292 2,662 5,165 14,893 278 1,909 9,432 11,105 .19 3,534 3,755 42,999 9,232 23,481 1,321 2,839 5,133 13,287 372 1,644 9,479 11,317 .26 Outside New York City 1975 1,300 3,475 175,662 56,009 86,542 23,590 4,475 4,549 35,858 2 2,413 14,714 25,622 7 1,345 3,145 177,072 56,232 87,738 23,614 4,404 4,591 36,014 5 2,411 14,578 25,559 .14 1,228 3,306 177,676 56,566 87,693 23,824 4,463 4,675 36,321 26 2,361 14,662 25,496 .21 1,311 3,370 177,492 56,844 87,391 23,749 4,400 4,647 35,208 397 2,179 14,903 25,520 .28 1976 1,250 3,598 181,244 69,996 83,094 19,969 4,557 3,078 39,759 27 1,889 10,822 27,777 7 1,326 3,679 180,391 69,774 82,441 20,247 4,544 2,838 41,060 312 1,933 11,178 27,790 ,14 1,324 3,594 179,556 70,052 81,405 20,335 4,369 2,824 40,058 142 1,821 11,155 27,802 ,21 1,320 3,241 179,384 70,202 81,292 20,231 4,309 2,793 40,238 206 1,818 11,098 27,910 ,28 1,366 3,634 179,399 70,710 81,181 19,963 4,190 2,793 41,810 20 1,803 11,798 27,944 5 1,367 3,168 179,346 70,951 81,076 19,862 4,067 2,839 41,640 1 1,802 11,606 27,972 12 1,359 3,231 179,199 71,096 80,883 19,791 3,996 2,850 40,623 227 1,928 11,774 28,009 13 1,298 3,200 179,798 70,934 81,500 19,841 4,013 2,926 38,454 226 2,124 12,100 27,966 26 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 □ JUNE 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD’s All other large Total included in time time 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) justed12 Issued Issued Issued Issued profit cor mental other16 their ad Total to to Total to to orga pora units foreign justed11 IPC’s others IPC’s others niza tions for branches tions profit15 Large banks—Total 1975 286,233370,411 101,571 83,864 55,217 28,647 36,485 18,800 17,685 63,104 2,323 14................................. 284,743368,984102,226 84,952 56,231 28,721 36,459 18,856 17,603 63,390 2,098 21................................. 284,370369,030102,060 84,325 55,634 28,691 36,575 18,910 17,665 63,771 3,212 28........ ..................... 284,174368,745 101,863 83,535 54,986 28,549 36,282 18,718 17,564 64,092 2,613 1976 Anr. 7. . 279,739374,322105,732 70,771 46,668 24,103 28,873 15,071 13,802 75,384 2,601 961 120 2,942 14................................. 277,790372,458107,718 69,534 45,880 23,654 29,051 14,867 14,184 75,125 2,627 930 131 2,480 21................................. 276,804372,129 106,393 67,885 44,433 23,452 29,012 14,755 14,257 75,285 2,698 1,092 108 3,324 28................................ 275,606368,377 104,618 67,203 44,215 22,988 28*828 14,696 14,132 75,424 2,751 1,061 113 2,728 May 5................................. 276,620369,465 103,649 67,135 44,127 23,008 28,438 14,653 13,785 75,781 2,862 1,162 116 2,684 12................................. 275,699368,303 103,786 66,821 43,861 22,960 28,084 14,492 13,592 75,949 2,936 1,181 101 2,704 19................................. 276,784370,080101,958 66,962 43,905 23,057 27,723 14,326 13,397 75,985 3,029 1,260 96 3,456 26................................. 276,313368,607 102,666 68,042 44,647 23,395 27,777 14,325 13,452 75,774 3,054 1,235 103 2,815 New York City 1975 Mav 7 73,532 87,416 23,920 29,564 18,641 10,923 8,788 5,180 3,608 7,095 1,606 14................................. 72,778 87,055 23,628 29,590 18,657 10,933 8,766 5,184 3,582 7,158 1,504 21................................. 72,713 87,218 24,323 29,013 18,233 10,780 8,759 5,158 3,601 7,205 2,228 28.......... ........ 72,663 87,089 24,595 28,557 17,932 10,625 8,662 5,093 3,569 7,248 1,682 1976 Anr. 7 70,294 87,482 24,086 24,121 15,676 8,445 6,260 4,103 2,157 8,596 214 180 80 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 75 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 68 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 82 1,835 May 5................................. 68,711 85,793 24,127 23,496 15,332 8,164 5,949 4,024 1,925 8,613 260 251 87 2,124 12................................. 68,029 85,267 23,384 23,270 15,176 8,094 5,860 3,958 1,902 8,627 273 242 74 2,057 19................................. 68,524 86,506 23,688 23,429 15,293 8,136 5,861 3,980 1,881 8,646 290 268 70 2,660 26................................. 68,179 85,424 23,867 23,922 15,607 8,315 5,849 3,927 1,922 8,612 292 254 74 2,237 Outside New York City 1975 Mav 7 212,701 282,995 77,651 54,300 36,576 17,724 27,697 13,620 14,077 56,009 717 14................................. 211,965281,929 78,598 55,362 37,574 17,788 27,693 13,672 14,021 56,232 594 21___ . ... 211,657281,812 77,737 55,312 37,401 17,911 27,816 13,752 14,064 56,566 984 28 211,511 281,656 77,268 54,978 37,054 17,924 27,620 13,625 13,995 56,844 931 1976 Adt. 7 209,445286,840 81,646 46,650 30,992 15,658 22,613 10,968 11,645 66,788 2,387 781 40 666 14................................. 208,047286,280 83,052 45,604 30,335 15,269 22,897 10,840 12,057 66,568 2,401 749 56 515 21................................. 206,886285,221 81,115 44,281 29,235 15,046 22,979 10,778 12,201 66,706 2,458 848 40 981 28................................. 206,988282,978 79,890 43,934 29,059 14,875 22,857 10,698 12,159 66,849 2,503 819 31 893 May 5................................. 207,909283,672 79,522 43,639 28,795 14,844 22,489 10,629 11,860 67,168 2,602 911 29 560 12................................. 207,670283,036 80,402 43,551 28,685 14,866 22,224 10,534 11,690 67,322 2,663 939 27 647 19................................. 208,260283,574 78,270 43,533 28,612 14,921 21,862 10,346 11,516 67,339 2,739 992 26 796 26................................. 208,134283,183 78,799 44,120 29,040 15,080 21,928 10,398 11,530 67,162 2,762 981 29 578 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. 16 Domestic and foreign com 4 Includes short-term notes and bills. mercial banks, and official international organizations. 5 Federal agencies only. * Includes corporate stocks. Note.—Eflfective Mar. 24, 1976, reclassification of loans in Chicago 7 Includes U.S. Govt, and foreign bank deposits, not shown separately. resulted in the following major revisions: commercial and industrial, 8 Includes securities sold under agreements to repurchase. —$675 million; other nonbank financial institutions, —$185 million; 9 Includes minority interest in consolidated subsidiaries. Beginning real estate, $580 million. These reclassifications are not reflected in Mar. 31, 1976, also includes deferred tax portion of reserves for loans. data prior to Mar. 24, 1976. 10 Includes reserves for securities. Beginning Mar. 31, 1976, also includes contingency portion of reserves for loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 o 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 May May May May Apr. 2nd 1st 26 19 12 5 28 May Apr. Mar. I IV III half half Durable goods manufacturing: Primary metals................................. 2,108 2,070 2,088 2,070 2,054 54 29 -28 -48 62 -12 50 18 Machinery........................................ 5,225 5,250 5,317 5,253 5,246 -21 -217 -13 -296 -781 -887 -1,668 -1,314 Transportation equipment............... 2,659 2,700 2,751 2,728 2,790 -131 -203 -80 -52 -267 -198 -465 -302 Other fabricated metal products... 1,783 1,821 1,858 1,846 1,860 -77 -26 -137 -87 -473 -277 -750 -188 Other durable goods........................ 3,529 3,538 3,580 3,558 3,579 -50 73 -66 53 -514 -174 -688 -718 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,048 3,059 3,070 3,142 3,158 -110 -113 -261 -509 455 13 468 -1,609 Textiles, apparel, and leather.......... 3,136 3,149 3,179 3,153 3,099 37 100 98 308 -477 -55 -532 -287 Petroleum refining........................... 2,416 2,344 2,359 2,363 2,341 75 117 -189 -138 -234 118 -116 228 Chemicals and rubber..................... 2,506 2,521 2,564 2,587 2,602 -96 -49 -39 -40 -178 -253 -431 -260 Other nondurable goods................. 1,874 1,874 1,888 1,916 1,936 -62 62 -37 66 -268 -147 -415 -283 Mining, including crude petroleum and natural gas............................. 6,607 6,563 6,501 6,516 6,486 121 85 206 448 789 276 1,065 -149 Trade: Commodity dealers................. 1,670 1,674 1,618 1,642 1,543 127 -104 62 65 340 137 All -972 Other wholesale....................... 5,718 5,691 5,710 5,730 5,792 -74 16 324 337 -103 -78 -181 -1,108 Retail........................................ 6,062 6,163 6,103 6,082 5,988 74 63 176 133 -208 -309 -517 -398 Transportation..................................... 5,784 5,786 5,857 5,847 5,830 -46 -7 -97 -231 127 -124 3 -321 Communication................................... 1,715 1,739 1,753 1,767 1,653 62 -42 -128 -289 -49 -109 -158 -357 Other public utilities............................ 6,073 5,997 5,976 6,028 5,940 133 -173 -381 -884 33 -231 -198 -1,423 Construction........................................ 4,239 4,291 4,292 4,348 4,357 -118 -67 -435 -701 -381 -55 -436 -622 Services................................................. 10,619 10,622 10,692 10,839 10,763 -144 -125 232 69 285 -300 -15 -1,120 All other domestic loans..................... 7,278 7,334 7,342 7,432 7,582 -304 -234 -1,095 -2,587 628 15 643 -372 Bankers acceptances............................. 2,954 2,937 2,907 3,138 3,117 -163 -185 -166 -1,643 2,855 -170 2,685 599 Foreign commercial and industrial loans.............................................. 5,751 5,681 5,614 5,661 5,650 101 280 77 82 222 535 757 294 Total classified loans........................... 92,754 92,804 93,019 93,646 93,366 -612 -720 -1,977 -5,944 1,863 -2,285 -422 -10,664 Comm, paper included in total clas sified loans1................................... 356 456 -100 12 24 7 153 44 197 240 Total commercial and industrial loans of large commercial banks.......... 112,228112,243 112,443 113,047 112,475 -247 -924 -2,511 -7,255 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 May Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. 2nd 26 28 31 25 28 31 26 29 24 I IV III II half' Durable goods manufactur ing: Primary metals................... 1,293 1,283 '1,291 1,335 1,341 1,372 1,381 1,320 1,338 '-81 34 50 4 84 Machinery.......................... 3,088 3,055 r3,144 3,072 3,117 3,313 3,451 3,538 3,737 ' — 169 -424 -240 -94 -664 Transportation equipment. 1,488 1,632 1,691 1,643 1,686 1,615 1,727 1,624 1,693 76 -78 -47 68 -125 Other fabricated metal products.......................... 879 919 909 1,035 1,041 1,024 1,087 1,175 1,268 -115 -244 46 -90 -198 Other durable goods.......... 1,843 1,871 1,793 1,838 1,874 1,823 1,905 1,950 2,012 -30 -189 -78 -161 -267 Nondurable goods manufac turing: Food, liquor, and tobacco. 1,334 1,366 1,391 1,536 1,547 1,578 1,544 1,451 1,471 -187 107 -43 -47 64 Textiles, apparel, and leather............................. 1,075 1,044 993 1,055 1,032 995 1,072 1,074 1,103 -2 -108 8 -63 -100 Petroleum refining............. 1,781 1,785 1,685 1,886 1,859 1,831 1,860 1,914 1,967 -146 -136 258 226 122 Chemicals and rubber....... 1,462 1,495 1,540 1,603 1,588 1,622 1,549 1,605 1,665 -82 -43 -97 -84 -140 Other nondurable goods.. 961 979 962 942 925 888 955 995 1,056 74 -168 -87 13 -255 Mining, including crude pe troleum and natural gas. 5,117 5,015 4,904 4,731 4,528 4,484 3,867 3,896 3,847 420 637 113 197 750 Trade: Commodity dealers.. 206 180 190 182 196 172 168 162 150 18 22 2 -2 24 Other wholesale........ 1,355 1,312 1,344 1,279 1,290 1,276 1,308 1,403 1,319 68 -43 -10 -121 -53 Retail................... 2,031 2,036 r2,008 1,987 2,007 1,996 2,115 2,150 2,153 '12 -157 17 -147 -140 Transportation....................... 4,246 4,252 4,250 4,329 4,291 4,390 4,324 4,420 4,391 -140 -1 -34 -99 -35 Communication..................... 1,008 984 998 1,095 1,101 1,081 1,112 1,122 1,132 -83 -51 -1 -2 -52 Other public utilities............. 3,811 3,770 3,898 3,940 3,995 3,979 3,942 4,027 3,966 -81 13 -79 11 -66 Construction.......................... 1,755 1,877 '1,915 2,141 2,258 2,181 2,207 2,267 2,359 '-266 -178 45 117 -133 Services................................... 5,266 5,310 5,368 5,147 5,038 5,135 5,082 5,097 5,122 233 13 -18 -290 -5 All other domestic loans .... 2,349 2,513 '2,700 3,093 3,396 3,299 3,116 3,054 3,244 '-599 55 -14 176 41 Foreign commercial and in dustrial loans.................. 3,121 3,085 2,984 3,001 2,999 2,921 2,851 2,834 2,763 63 158 169 66 327 45,469 45,763 '45,958 46,870 47,109 46,975 46,623 47,078 47,756 '-1,017 -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 □ JUNE 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec.................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Dec.................................................................................. 18.5 98.4 58.6 1.3 10.7 187.5 1972—Dec................................................................................. 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 June................................................................................ 18.6 106.6 67.3 2.0 11.8 206.3 Sept................................................................................. 18.8 108.3 69.1 2.1 11.9 210.3 Dec................................................................................. 19.1 116.2 70.1 2.4 12.4 220.1 1974—Mar................................................................................ 18.9 108.4 70.6 2.3 11.0 211.2 June................................................................................ 18.2 112.1 71.4 2.2 11.1 215.0 Sept................................................................................. 17.9 113.9 72.0 2.1 10.9 216.8 Dec................................................................................. 19.0 118.8 73.3 2.3 11 .7 225.0 1975—Mar................................................................................. 18.6 111.3 73.2 2.3 10.9 216.3 June................................................................................ 19.4 115.1 74.8 2.3 10.6 222.2 Sept................................................................................. 19.0 118.7 76.5 2.2 10.6 227.0 Dec................................................................................. 20.1 125.1 78.0 2.4 11.3 236.9 1976—Mar............................................................................... 19.9 116.9 77.2 2.4 11.4 227.9 Weekly reporting banks: 1971—Dec................................................................................. 14.4 58.6 24.6 1.2 5.9 104.8 1972—Dec................................................................................. 14.7 64.4 27.1 1.4 6.6 114.3 1973—Dec................................................................................. 14.9 66.2 28.0 2.2 6.8 118.1 1974—Dec................................................................................. 14.8 66.9 29.0 2.2 6.8 119.7 1975—Apr................................................................................. 15.0 63.3 30.1 2.2 6.5 117.0 14.2 63.1 29.2 2.3 6.2 115.0 June................................................................................ 15.1 65.1 29.5 2.2 6.2 118.1 July................................................................................. 15.0 65.3 29.8 2.2 6.5 118.7 Aug................................................................................. 14.4 64.6 29.1 2.0 5.9 116.1 Sept................................................................................. 14.7 65.5 29.6 2.1 6.2 118.1 Oct.................................................................................. 15.1 66.7 29.0 2.2 6.3 119.3 Nov................................................................................. 15.4 68.1 29.4 2.2 6.4 121.6 Dec................................................................................. 15.6 69.9 29.9 2.3 6.6 124.4 1976—Jan.................................................................................. 15.2 68.0 30.3 2.2 6.7 122.4 Feb................................................................................ 15.3 65.6 29.2 2.2 6.4 119.0 Mar................................................................................. 15.4 65.2 30.8 1.8 6.2 119.5 Apr................................................................................. 15.1 65.5 33.6 1.8 6.0 122.0 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, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1973 1974 1975 1975 bank 1973 1974 1975 1975 All commercial......................... 507 389 338 280 All member—Cont. Insured................................... 503 387 335 280 Other large banks 1 58 69 74 76 National member.................. 288 236 223 188 All other member 1 294 206 186 146 State member....................... 64 39 36 35 All nonmember........ 155 115 79 58 All member............................... 352 275 260 223 Insured.................. 152 112 76 58 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-l4; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for “Time de posits” and “Loans” for call dates as shown on pp. A-14-A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 By type of loan Date Total Commercial Real All and estate other industrial 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......................... 4,3$0 2,653 197 1,540 17......................... 4,348 2,604 200 1,544 24......................... 4,239 2,531 201 1,507 31......................... 4,234 2,552 197 1,485 Apr. 7......................... 4,050 2,459 195 1,396 i To bank’s own foreign branches, nonconsolidated non 14......................... 4,082 2,480 197 1,405 bank affiliates of the bank, the bank’s holding company (if 21......................... 4,121 2,531 194 1,396 not a bank), and nonconsolidated nonbank subsidiaries of 28......................... 4,176 2,560 200 1,416 the holding company. May 5......................... 4,174 2,567 195 1,412 Note.—Series changed on Aug. 28,1974. For a comparison 12..................... 4,346 2,727 193 1,426 of the old and new data for that date, see p. 741 of the Oct. 19......................... 4,307 2,704 192 1,411 1974 Bulletin. Revised figures received since Oct. 1974 26......................... 4,334 2,682 208 1,444 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 companies1 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 2,408 197 0 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 2,895 197 1 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 3,509 197 2 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 2,458 197 3 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 3,120 197 4 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-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. 51,623 461 32,144 14,018 1,618 7,002 18.727 4,485 3,900 585 1,185 235 r12,822 3,690 4,206 10,831 May. 51,317 889 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. 48,765 604 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. 49,352 018 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. 49,810 645 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. 48,257 574 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 r5,213 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 Mar. 49,300 6,428 31,239 11,633 1,654 6,773 18,901 6,340 5,651 689 883 245 11,433 4,027 4,193 10,681 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 □ JUNE 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 10% 1975-—July 18................... 7% 1975—Jan. 10.05 19 101/4 15, 10 28................... 7% Feb. 8.96 25 10% 20 9V4 Mar. 7.93 28, 9% Aug. 12................... 734 Apr. 7.50 May 2 JO * May 7.40 6 Feb. 3, 9Va Sept. 15................... 8 June 7.07 10 111/4 10, 9 July 7.15 17 11% 18, 834 Oct. 734 Aug. 7.66 24, 8% Sept. 7.88 June 26 11 34 Nov. 5................... 7% Oct. 7.96 Mar. 5, m Nov. 7.53 July 5 12 1 10 8, , 7 8 ' 734/ Dec. 2.................. m Dec. 7.26 Oct. 7 1134 24, 7% 1976-—Jan. 7 1976—Jan. 7.00 21 11% 21................... 634 Feb. 6.75 28 11% May 20, 71/4 Mar. 6.75 June 1................... 7 April 6.75 Nov. 4 11 June 9, 7 May 6.75 14 103^ 25 10% 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 8 North Central....................... 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 7 Other Northeast................... 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
JUNE 1976 □ INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securitiess Prime Finance commercial CO. Prime Fed Period paper1 paper bankers’ eral 3-month bills6 6-month bills <5 9- to 12-month issues placed accept funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1-year issues 7 days months months2 on new yield on new yield bill (mar Other? 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 6.19 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 1 1 9 9 7 7 2 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.66 4 5 . . 6 11 9 4 4 . . 9 5 1 2 4 4. . 8 4 5 7 4 4 . . 4 6 4 6 4 4 . . 0 3 7 4 1 8 4 4. . 3 0 3 7 4 4 .4 5 6 1 6 1 4 4. . 4 5 9 2 4 4 ! ! 7 6 7 7 4 4 ! ! 8 7 6 5 5 5 . ’ * 8 7 5 7 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—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 5.08 5.23 5.13 5.03 4.82 4.878 4.86 5.201 5.18 5.54 5.85 6.99 May............. 5.44 5.54 5.38 5.53 5.29 5.185 5.20 5.600 5.62 5.98 6.36 7.35 Week ending— 1976—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 5.15 5.13 5.07 4.93 4.909 4.88 5.230 5.24 5.61 5.90 7.04 8....... 5.20 5.30 5.15 5.21 5.03 4.921 4.91 5.339 5.30 5.68 5.98 7.11 15 ... 5.30 5.43 5.30 5.39 5.02 5.072 5.11 5.426 5.51 5.89 6.21 7.28 22....... 5.53 5.63 5.45 5.67 5.28 5.250 5.33 5.726 5.79 6.11 6.56 7.46 29....... 5.73 5.83 5.63 5.87 5.50 5.495 5.47 5.908 5.89 6.26 6.68 7.56 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 □ JUNE 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 l States (long Re Aaa Baa Indus Rail Public term) Total i Aaa Baa New cently trial road utility Pre Com Com issue offered ferred mon mon Seasoned issues 1970................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 .................. 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974................... 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1975................... 6.98 7.05 6.42 7.62 9.40 9.41 9.46 8.83 10.39 9.25 9.39 9.88 8.38 4.31 9.03 1975—May. , , 6.99 6.95 6.42 7.48 9.63 9.65 9.55 8.90 10.46 9.37 9.49 9.93 8.51 4.08 June........ 6.86 6.96 6.28 7.48 9.25 9.32 9.45 8.77 10.40 9.29 9.40 9.81 8.34 4.02 8.29 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 9.12 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 8.61 1976—Jan.......... 6.94 7.08 6.22 7.81 8.70 8.79 9.33 8.60 10.24 9.16 9.32 9.68 8.16 3.80 Feb........ 6.92 6.94 6.04 7.76 8.63 8.63 9.23 8.55 10.10 9.12 9.25 9.50 8.00 3.67 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 May........ 6.99 6.85 5.88 7.75 8.82 8.77 9.06 8.58 9.76 9.00 8.96 9.31 8.06 3.76 Week ending— 1976—Apr. 3.. 6.78 6.70 5.77 7.56 8.60 8.54 9.10 8.46 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 8.42 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 8.36 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 8.36 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 8.41 9.76 8.95 8.99 9.23 7.95 3.67 8.. 6.88 6.70 5.75 7.60 8.68 8.62 9.03 8.48 9.75 8.98 8.97 9.25 8.03 3.77 15.. 6.98 6.81 5.85 7.71 8.82 8.78 9.05 8.56 9.75 8.98 8.96 9.30 8.04 3.69 22.. 7.04 6.89 5.92 7.79 8.82 8.83 9.07 8.62 9.76 9.02 8.95 9.33 8.12 3.75 29.. 7.05 6.98 6.00 7.89 8.95 8.84 9.09 8.65 9.77 9.04 8.93 9.37 8.03 3.83 Number of 15 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors Service. (3) Corporate, rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System; and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings/price ratios as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of non data. 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
JUNE 1976 □ SECURITY MARKETS A29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer trading in (ner 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 l U o o . n 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 i u al s T p t o r i a r o n t n a s Utility na F n i ce 1 ( 9 A 3 7 u 1 3 , g = . NYSE AMEX term) 100) 1970............................ 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 96.63 10,532 3,376 1971............................ 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 113.40 15,381 4,234 1972........................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 129.10 16,487 4,447 1973............................ 62.80 85.4 63.7 107.43 120.44 38.05 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16,374 3,004 1974............................ 57.45 76.3 58.8 82.85 92.91 37.53 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 1975............................ 57.44 68.9 56.2 85.17 96.15 37.48 41.21 45.73 51.88 30.73 31.45 46.62 83.15 18,568 2,150 1975--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 58.09 68.5 56.6 92.49 103.84 38.0J4uly4...3....6..7.........49.54 54.96 32.90 32.98 52.51 93.28 20,076 2,750 Aug................ 56.84 68.3 55.6 85.71 96.21 35.13 41.04 45.71 50.71 30.08 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 Apr................ 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 Mav.................. 57.38 69.1 56.5 101.16 113.76 46.09 45.70 53.87 60.22 39.71 35.40 50.99 103.65 17.796 2,127 Week ending— 1976--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 8 58.19 70.1 57.4 101.26 113.85 45.53 46.01 53.89 60.11 39.06 35.89 51.35 102.21 16,280 1 ,996 15, 57.41 69.2 56.6 102.46 115.23 46.77 46.21 54.58 60.99 40.30 35.95 51.75 104.76 19,678 2,396 22 57.00 69.1 56.2 101.36 113.98 46.44 45.68 53.99 60.40 40.24 35.31 50.86 104.60 18,374 2,090 29. 56.93 68.1 56.0 99.57 111.97 45.63 44.88 53.02 59.39 39.23 34.46 49.99 103.02 16,850 2,024 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—Apr.. 5,327 4,503 824 4,360 781 138 30 13 1,885 505 1.790 May. 5,666 4,847 819 4,700 779 140 27 13 1,883 520 1,705 June. 5,984 5,140 844 4,990 805 146 28 11 2,434 520 1.790 July. 6,266 5,446 820 5.300 780 143 29 10 2,387 555 1,710 Aug.. 6,197 5,365 832 5,220 791 142 30 11 2,457 515 1,500 Sept.. 6,251 5,399 852 5,250 811 145 30 10 2,520 470 1,455 Oct.. 6,455 5,448 1.007 5.300 956 144 36 15 2,311 545 1,495 Nov.. 6,527 5,519 1.008 5,370 958 146 37 13 2,270 490 1,470 Dec.. 6,500 5,540 960 5,390 909 147 36 15 2,281 475 1,525 1976—Jan... 6,568 5,568 1,000 5,420 946 146 34 20 2,321 655 1,975 Feb.. 7,152 6,115 1,037 5,950 984 162 34 20 2,333 685 2,065 Mar.. 6,410 163 r595 1,935 Apr.. 6,690 163 570 1,740 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ JUNE 1976 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil End of period credit balance E pe n r d i o o d f l d io o o n f l s 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n tof (m d i o l l l l i a o r n s s ) lars) 1 1975—Apr....................... 45.2 41.1 13.7 7,505 1975—Apr.. 4,360 7.1 8.7 16.1 28.7 23.5 15.9 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 43.5 40.6 16.0 7,494 Aug.. 5,220 5.5 6.8 11.3 20.7 31.0 24.7 45.3 38.9 15.8 7,515 Sept.. 5,250 5.1 7.3 10.6 19.6 31.0 26.5 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 45.3 40.2 14.5 7,425 Nov.. 5,370 5.2 6.7 12.2 23.2 28.6 24.0 43.8 40.8 15.4 7,290 Dec.. 5,390 5.3 6.9 11.6 22.3 28.8 25.0 1976—Jan........................ 45.8 44.0 10.3 r7,770 1976—Jan... 5,420 7.0 9.4 18.3 21.3 28.8 15.5 Feb....................... 44.4 44.7 10.9 '8,040 Feb.. 5,950 6.8 8.9 17.4 29.0 22.6 15.3 44.0 46.0 10.4 8,050 Mar.. 6,410 6.0 8.7 16.0 29.0 25.0 16.0 43.0 45.0 12.0 7,990 Apr.. 6,690 6.1 7.7 12.9 27.7 30.2 15.4 Note.—Special miscellaneous accounts contain credit balances that i Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col sales proceeds) occur. lateral values. MUTUAL SAYINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 State Corpo Cash Other li T a o b t i a li l Depos l O ia t b h i e li r G re e s n e e rv ra e l classi ( f i i n e d m b o y n t m hs a ) turity End of period M ga o g r e t Other G U o .S vt . . g l a o o n c v d a t l . o r a t a h n t e d e r1 assets g re e a t s n i n e e e r d s r v a e l its ties co a u c n ts 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—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... 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 Mar.p. 77,738 5,366 5,452 1,867 30,043 1,740 3,321 125,526 114,090 2,859 8,577 1,092 360 251 427 2,130 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 Banks, 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
JUNE 1976 □ SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of doilars) Government securities Business securities Total Mort Real Policy Other End of period assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign Total Bonds Stocks gages estate loans assets 197 1 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 197 2 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 197 3 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25.919 81,369 7,693 20,199 14,057 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.r 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 Oct... 284,829 13,793 5,505 4,148 4,140 133,237 105,473 27,764 88,655 9,356 24,171 15,617 Nov.. 286,975 14,129 5,762 4,210 4,157 134,495 106,385 28,110 88,850 9,464 24,271 15,766 Dec.. 289.084 14.582 5,894 4.440 4.248 135.014 106.755 28.259 89.358 9.634 24.389 16.107 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 l 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 m n e v c e e u n s r t t Cash Other l a ia s T b s o e il t t i a s ti — l e s S c a a v p i i n ta g l s w N or e t t h2 m ro B o w n o e e r y d 3 p L ro o i c n a e n s s s Other ou m a p t t s i e t t e m r a n i n o d e d d n i o 4 t n s f g ities 1 1971.................................. 174,250 18,185 2,857 10,731 206,023 174,197 13,592 8,992 5,029 4,213 7,328 1972.................................. 206,182 21,574 2,781 12,590 243,127 206,764 15,240 9,782 6,209 5,132 11,515 19735................................ 231,733 21,055 19,117 271,905 226,968 17,056 17,172 4,667 6,042 9,526 1974.................................. 249,293 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—Apr........................ 254,727 29,047 24,868 308,642 258,875 18,882 r19,829 3,608 *•7,448 11,653 May...................... 257,911 30,648 25,520 314,079 262,770 19,128 ’•19,301 4,105 *•8,775 12,557 June...................... 261,336 30,880 25,786 318,003 268,978 18,992 *•18,863 4,446 *•6,724 12,363 July....................... 264,458 32,054 26,311 322,823 272,032 19,266 r18,744 4,771 *•8,010 12,611 Aug....................... 267,717 31,694 27,127 326,538 273,504 19,495 *•19,216 4,995 *•9,328 12,673 Sept....................... 270,600 30,786 27,745 329,131 277,201 19,414 *•20,031 5,128 *•7,357 12,585 Oct........................ 273,596 31,652 28,145 333,393 279,465 19,663 '20,306 5,207 *•8,752 11,748 Nov....................... 275,919 32,498 28,610 337,027 281,711 19,919 *•20,413 5,164 *•9,820 11,365 Dec........................ 278,693 30,900 28,802 338,395 286,042 19,776 *•20,709 5,187 *•6,680 10,675 1976—Jan........................ 280,071 34,271 29,716 344,058 291,418 19,948 *•19,630 5,051 *•8,011 11,111 Feb........................ 282,487 36,128 30,251 348,866 295,364 20,162 *•18,746 5,134 *•9,460 12,878 Mar....................... 286,556 36,722 30,462 353,740 302,436 2,0211 18,220 5,379 7,494 14,445 Apr.*..................... 290,680 36,437 30,697 357,814 305,243 20,474 17,740 5,789 8,568 15,551 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 □ JUNE 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 net2 ties ties notes i ing Special Other balance issues Fiscal year: 197 2 208,649 231,876 -23,227 29,131 -1,269 6,796 1,623 19,442 1,362 1,108 6,255 197 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— Apr.'.... 31,392 29,130 2,261 7,081 -24 10 -451 7,499 7,666 1,814 -280 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 Apr......... 33,348 32,476 872 1,483 -32 50 4 1,398 3,517 545 1,792 Selected balances Treasury operating balance Borrowing from the public. End Memo: of Less: Debt of period B F a . n R k . s acc l 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 i t i c es s A ec g u e r n it c i y es S i p s I G s e n u c o v e i v a s e l t s , t m ac e c n o t O u s n t o t h s f e r S n L p o e e te c ss s ia : i l E T q o u ta a l ls: s c p p o G r o N r i n o p v o s v a s w o t . t — . r e - e 4 d Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,634 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 88 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 197 5 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 (5) 396,906 76,092 Calendar year: 197 3 2,543 7,760 70 10,374 469,898 11,586 106,624 24,978 825 349,058 59,857 197 4 3,113 2,745 70 5,928 492,664 11,323 117,761 25,423 (5) 360,804 76,459 197 5 7,286 1,159 7 8,452 576,649 10,904 118,294 23,006 446,253 Month: 1975—Ap r 8,364 5,415 521 14,299 516,740 11,004 115,606 24,355 387,783 77,124 May..., 7,040 984 521 8,545 528,158 10,998 118,902 23,916 396,339 75,140 June.... 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 396,906 76,092 July..., 2,776 878 444 4,098 538,240 10,920 120,606 23,847 404,707 77,173 Aug---- 2,349 1,214 -141 3,423 547,711 10,926 122,990 23,752 411,895 76,659 Sept.. ., 8,074 2,162 529 10,765 553,647 10,935 120,839 23,385 420,358 77,026 Oct....... 8,517 1,251 559 10,327 561,999 10,931 117,183 23,645 432,102 78,016 Nov... . 4,919 1,558 9 6,485 566,799 10,928 116,434 23,255 438,037 78,451 Dec___ 7,286 1,159 7 8,452 576,649 10,904 118,294 23,006 446,253 78,842 1976—Ja.........n 10,075 1,905 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 78,712 Apr__ 9,806 1,723 7 11,536 601,973 10,870 118,390 22,690 471,763 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
JUNE 1976 □ FEDERAL FINANCE A33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus Estate Misc. Elec Non Gross contribution2 Un- Other taxes toms and re With tion with Re Net re Re empl. net Net gift ceipts4 held Cam held funds total ceipts funds insur. re total paign Pay Self- ceipts3 Fund1 roll empl. taxes Fiscal year: 1972....................... 208,649 83,200 25,67914,143 94,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 1973....................... 232,225 98,093 27,01721,866 103,24639,045 2,89352,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 264,932 112,092 19743..0..,.8..1..2...2..3..,.9..5..2.. 118,95241,744 3,1252682,878 3,008 6,837 76,78016,844 3,334 5,035 5,346,0951 1975....................... 280,997 122,071 3234,29634,013 122,38645,747 5,12571,789 3,417 6,770 4,46686,441 16,551 3,676 4,611 6,711 Half year: 1974—Jan.-June.. 140,676 59,100 2824,60522,953 60,78225,155 1,631 32,919 2,807 3,862 2,08441,671 7,878 1,701 2,521 2,601 July-Dee... 139,607 61,378 7,098 1,016 67,461 18,247 2,01634,418 254 2,914 2,18739,774 8,761 1,958 2,284 3,140 1975—Jan.-June.. 141,190 60,694 27,19832,997 54,92627,500 3,10937,371 3,163 3,856 2,27946,667 7,790 1,718 2,327 3,370 July-Dee... 139,453 59,549 7,649 1,362 65,835 18,810 2,73535,443 268 2,861 2,31440,886 8,759 1,927 2,573 3,397 Month: 1975—Apr............ r31,392 9,542 1512,766 6,258 16,065 5,819 726 5,438 1,743 557 388 8,126 1,166 286 317 r339 May........... 12,793 10,300 81912,749 -1,630 1,192 18 7,689 340 2,209 35010,588 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 10,246 488 331 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 Apr............ 33,348 10,029 712,723| 7,512 15,248 6,727 607 6,179 1,832 952 386 9,349 1,353 357 387 535 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--Apr.r. ... 29,130 7,545 303 359 132 695 1,079 297 1,789 11,948 1,519 2,716 16 1,787 -1,055 May........ 28,186 8,000 408 384 42 679 995 383 1,647 It,968 1,468 2,607 479 -873 June........ 30,296 7,854 557 256 179 788 1,289 453 1,684 14,158 1,412 2,521 759 "*-i4 -1,601 July......... 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 Apr.......... 32,476 7,994 249 360 -51 984 1,610 464 1,606 13,679 1,652 3,356 420 1,605 -1,452 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 □ JUNE 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) Total End of period p d g u e r b b o l s t i c s 1 Total Total Bills Ma C c r e k a r e t t e i t f s a i b le Bonds 2 b C v o ib e o n r l n e d t s Total N 3 on F m o a r r e k ig et n abl 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 l 5 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—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 May 610.7 484.4 388.0 161.8 186.5 39.7 2.3 94.1 21.5 69.8 123.7 1 Includes non-interest-bearing debt (of which $610 million on May 31, 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 l s a i t 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 c m k ia s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r s r c O a o t t r i h o p e n o r s g S l a o o t n v c a d a t ts e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a n l 1 t O i m o n r t v i s h s e c e s 2 . r funds bonds securities 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................ 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec................ 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec................ 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................ 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................ 469.9 129.6 78.5 261.7 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—Apr................ 516.7 138.0 87.8 290.9 64.1 3.2 6.7 12.5 29.8 64.7 21.4 64.9 23.6 May............... 528.2 140.9 85.6 301.7 67.7 3.4 6.9 13.7 29.8 65.1 21.5 66.8 26.8 June.............. 533.2 145.3 84.7 303.2 69.2 3.5 7.1 13.2 29.6 65.5 21.6 66.0 27.4 July............... 538.2 142.5 81.9 313.8 71.4 3.7 7.3 16.2 31.3 65.9 21.8 66.7 29.5 Aug................ 547.2 144.8 82.5 320.4 75.4 3.9 7.4 16.0 31.2 66.2 22.6 67.3 30.5 Sept............... 553.6 142.3 87.0 324.4 78.4 4.0 7.6 15.0 32.2 66.5 23.0 65.5 32.3 Oct................. 562.0 138.8 87.2 336.0 80.5 4.2 7.9 17.5 33.8 66.8 23.2 66.9 35.2 Nov............... 566.8 137.7 85.1 343.9 82.6 4.4 8.8 20.0 33.9 67.1 23.5 66.1 37.5 Dec................ 576.6 137.4 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 Mar.*............ 600.5 139.1 89.8 371.7 92.7 5.1 10.4 23.0 37.8 68.4 24.6 68.1 41.4 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se 2 Consists of savings and loan assns., nonprofit institutions, cor curities and (2) remove from U.S. Govt, agencies and trust funds porate pensions trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. Beginning in July 1974, total gross public debt includes Federal trust funds; Treasury estimates for other groups. Financing Bank bills and excludes notes issued to the IMF ($825 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 o 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 y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r r s Total Bills Other All holders: 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—Dec. 31........................................................ 366,191 199,692 157,483 42,209 112,270 26,436 14,264 10,530 1976—Mar. 31........................................................ 385,296 203,780 163,140 40,640 123,933 32,386 14,131 11,066 Apr. 30........................................................ 386,444 203,983 161,764 42,219 124,967 32,381 14,067 11,045 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—Mar. 31................................................ 19,110 3,018 457 2,561 6,674 3,082 4,246 2,089 Apr. 30................................................ 19,110 3,110 526 2,584 6,661 3,039 4,233 2,068 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—Mar. 31................................................ 89,753 46,504 38,330 8,174 r31,045 7,766 1,534 2,904 Apr. 30................................................ 91,814 47,433 38,793 8,640 32,108 7,745 1,592 2,935 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—Mar. 31................................................ 276,433 154,258 124,353 29,905 86,214 21,538 8,351 6,073 Apr. 30................................................ 275,520 153,440 122,445 30,995 86,198 21,597 8,242 6,042 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—Mar. 31........................................ 69,742 29,290 17,841 11,449 35,362 4,337 517 236 Apr. 30........................................ 69,329 28,757 16,584 12,173 35,538 4,304 507 223 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—Mar. 31......................................... 3,895 1,074 585 489 1,924 562 220 115 Apr. 30........................................ 3,903 1,046 487 559 2,015 550 214 78 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—Mar. 31........................................ 8,577 2,055 1,546 509 3,100 1,854 1,150 418 Apr. 30........................................ 8,498 1,840 1,337 503 3,123 1,928 1,152 455 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—Mar. 31........................................ 11,275 9,168 7,890 1,278 1,865 120 56 66 11,933 9,507 8,235 1,272 2,239 82 55 51 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—Mar. 31......................................... 4,180 1,781 1,265 516 2,120 175 88 16 Apr. 30........................................ 4,414 1,918 1,386 532 2,219 173 85 20 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—Mar. 31........................................ 11,334 6,852 5,871 981 2,040 886 832 724 Apr. 30........................................ 11,294 6,877 5,891 986 2,147 836 815 619 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—Mar. 31........................................ 167,431 104,038 89,354 14,684 39,803 13,604 5,488 4,498 Apr. 30........................................ 166,148 103,495 88,525 14,970 38,917 13,725 5,415 4,595 Note.—Direct public issues only. Based on Treasury Survey of banks, and 729 insurance companies combined, each about 90 per cent; Ownership. (2) 454 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) 5,522 commercial banks, 470 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A36 U.S. GOVERNMENT SECURITIES □ JUNE 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 otheri dealers brokers banks 1975—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 '2,935 1,417 Feb............................... 8,329 5,863 1,553 755 158 951 2,389 2,196 2,793 1,163 Mar.............................. 9,044 6,763 1,807 358 116 1,308 2,777 2,276 2,683 1,185 Apr............................... 10,293 7,667 2,186 306 134 1,341 3,154 2,426 3,372 1,665 Week ending— 1976—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 '1,218 '3,377 '2,114 '3,277 1,271 May 5....................... 9,403 7,358 1,630 266 149 1,112 2,939 2,229 3,124 969 12....................... 9,474 5,793 2,035 1,205 441 1,008 3,203 2,502 2,762 981 19....................... 7,903 5,660 1,203 744 295 827 2,697 2,015 2,364 1 ,524 26....................... 8,276 5,643 1,881 556 197 910 2,983 1,972 2,412 1,098 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commerc:ial banks U.S. Period m t A a i t e l u s l ri W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y Period sou A r l c l es Y N C o i e t r w y k w E h ls e e r e C t o io r n p s o 1 ra o A th l e l r 1975—Apr................. 4,453 3,123 1,036 218 77 937 1975- 5,696 1,655 1,326 583 2,132 May............... 6,332 4,917 1,094 248 73 896 May . 6,656 1,684 1,567 452 2,953 June............... 6,768 5,923 748 100 -3 790 June. 7,682 1,955 1,979 737 3,012 July................ 5,736 4,978 775 47 -64 626 July., 6,594 1,365 1,435 929 2,865 Aug................ 5,501 4,491 609 262 138 610 Aug., 6,167 1,009 1,148 1,120 2,890 Sept................ 5,718 5,214 410 56 39 529 6,576 1,160 1,640 972 2,804 Oct................. 7,322 6,019 1,091 111 102 491 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 5,477 381 224 183 602 Feb 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 Apr................. 6,733 6,328 190 131 84 508 7,587 1,966 1,734 1,126 2,761 Week ending— Weekending— 1976—Mar. 3 5,282 4,899 138 102 144 476 1976--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 Apr. 7........ 7,762 7,328 194 136 104 572 Apr. 7. . . 7,929 2,249 1,790 1,244 2,646 14 8,109 7,554 257 174 124 499 14. . . 8,603 2,146 2,483 1,625 2,348 21 7,159 6,731 202 151 74 520 21... 8,309 2,108 1,629 894 3,678 28........ 4,803 4,578 96 79 50 469 28. .. 6,016 1,579 1,257 837 2,343 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
JUNE 1976 o FEDERALLY SPONSORED CREDIT AGENCIES A37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad Cash Mem Deben Loans Loans vances Invest and Bonds ber Capital Mort tures to and Mort to ments de and de Stock gage and cooper Bonds dis Bonds gage Bonds mem posits notes posits loans notes atives counts loans bers (A) (L) (A) (L) (A) (L) (A) (L) 1970............. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971............. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972............. 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973............. 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 1974............. 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—Apr... 17,528 6,836 98 20,738 2,651 2.660 29,931 28,257 3,650 3,329 9,520 9,061 14,917 13,571 May.. 17,145 5,745 98 19,463 2,708 2*656 29,977 27,962 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 Apr... 15,336 6,394 113 17,713 2,990 2,829 31,468 30,148 4,590 3,921 10,762 9,877 17,514 15,834 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 HAA1 G l U o o a . v S n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o n b R r a i o d n a g d d e s s i U tie ti s l 4 H in o g u s s V a a e n i t d e s r ’ O p t u h r e - r gations auth. 197 1 24,963 15,220 8,681 1,000 5,999 8,714 10,246 24.495 5,278 2,642 5,214 2,068 9,293 197 2 23,653 13,305 9,332 959 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 6,741 197 3 23,969 12,257 10,632 1,022 4,212 9,505 10,249 22,397 4,311 1,458 5,654 2,639 8,335 197 4 24,315 13,563 10,212 461 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 197 5 30,607 16,020 14,511 7,438 12,441 10,660 29.495 4,689 1,277 7,209 647 15,673 1975—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.r. 2,355 1,135 1.209 639 1,070 637 2,270 432 95 600 88 1,055 Feb.r. 2,694 1,304 1,375 446 1,449 782 2,594 335 135 572 130 1,422 Mar.r 3,328 2,159 1,162 1,254 816 1,253 3,163 428 215 707 692 1,121 Apr... 2,365 1,191 1,163 455 1,181 718 2,252 341 25 665 358 863 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 □ JUNE 1976 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues i Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n . v S c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 al Other* Total Total P o u f b fe l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1972'. 84,792 17,080 12,825 23,070 1,589 40,228 26,132 17,425 8,706 3,370 10,725 1973 r. 99,050 19,057 23,883 22,700 1,385 32,025 21,049 13,244 7,802 3,337 7,642 1974 38,311 32,066 25,903 6,160 2,253 3,994 1975 r. 53,714 42,830 32,603 10,227 3,458 7,426 1975—Jan... 5,365 4,792 3.657 1,135 235 338 Feb.., 4,530 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 4,298 3,796 502 346 1,154 June. 5,618 4,613 3,943 670 230 775 July.. 4,390 3,733 2.658 1,075 198 459 Aug.. 2,398 1,835 1,356 479 129 434 Sept.. 2,845 2,009 1,414 595 308 528 Oct... 4,710 3,163 2,389 774 332 1,215 Nov.. 4,087 3,304 1,666 1,638 440 343 Dec.., 4,279 3.482 1,761 1,721 462 335 1976—Jan.. 3,216 2,646 2,189 457 139 431 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 *•........ 4,560 1,833 2,526 2,786 1,258 148 6,349 4,966 3,709 1,126 7,728 3,242 1973 *■........ 4,199 638 1,318 1,532 1,084 26 5,578 4,691 3,523 1,348 5,344 2,745 1974 *■........ 9,867 544 1,845 940 1,550 22 8,873 3,964 3,710 217 6,218 562 1975r........ 17,098 1,670 2,750 1,489 3,447 1 9,652 6,235 3,464 1,002 6,420 490 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 1976—Jan.. 968 39 284 87 290 649 435 15 440 9 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See Note to table at bottom of 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
JUNE 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 12,787 2,408 10,377 1974—IV............... 12,272 2,871 9,401 10,086 2,004 8,082 2,186 866 1,319 1975—1................. 15,211 2,088 13,123 12,759 1,587 11,172 2,452 501 1,951 II................ 15,602 3,211 12,390 11,460 2,336 9,124 4,142 875 3,266 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 Type of issues Manu Commercial Transpor Public Communi Real estate facturing and other 2 tation 3 utility cation and financial i Period Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 197 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 5,428 207 197 5 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 Ill 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 i Redemp Net Total 2 Cash tions sales position 3 tions sales position : 1963.............. 2,460 1,504 952 25,214 1,341 23,873 1975-—Apr... 808 791 17 42,353 3,841 38,512 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 May.. 677 735 -58 43,832 3,879 39,953 1965.............. 4,359 1,962 2,395 35,220 1,803 33,417 June.. 703 811 -108 45,538 3,640 41,898 July... 813 1,052 -239 42,896 3,591 39,305 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Aug... 753 788 -35 41,672 3,660 38,012 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Sept... 760 874 -114 40,234 3,664 36,570 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Oct.. . 914 995 -81 41,860 3,601 38,259 Nov... 786 911 -125 42,460 3,733 38,727 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Dec... 1,040 1,093 -53 42,179 3,748 38,431 1970.............. 4,624 2,987 1,637 47,618 3,649 43,969 1971.............. 5,145 4,751 394 55,045 3,038 52,007 1976--Jan... 411 538 -47 46,529 3,287 43,242 Feb... 262 577 -315 46,540 3,084 43,546 1972.............. 4,892 6,563 -1,671 59,831 3,035 56,796 Mar.r. 326 677 -351 46,866 2,881 43,985 1973.............. 4,358 5,651 -1,261 46,518 4,002 42,516 Apr... 305 620 -315 45,956 2,683 42,273 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 □ JUNE 1976 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1973 1974 1975 Industry 1972 1973 1974 III IV I II III IV I II III Total (170 corps.): 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 Memo: PAT unadj.1........ 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 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 Profits after taxes................. 2,672 3,504 4,875 901 883 1,044 1,247 1,223 1,362 925 929 1,034 Memo: PAT unadj.1........ 2,671 3,469 4,745 871 880 1,031 1,245 1,180 1,289 927 937 1,028 Dividends............................. 1,395 1,496 1,646 374 417 383 405 422 437 431 425 429 Petroleum refining (15 corps.): Sales...................................... 74,662 93,505 165,150 23,586 27,752 36,103 41,362 42,747 44,938 41,988 41,342 43,873 Total revenue....................... 76,133 95,722 168,680 23,988 28,584 36,913 42,261 43,659 45,847 42,851 42,100 44,633 Profits before taxes.............. 11,461 17,494 30,659 4,371 5,724 8,296 7,564 8,339 6,458 6,227 6,612 6,961 Profits after taxes................. 5,562 8,550 11,775 2,230 2,662 3,098 3,349 3,181 2,147 1,905 2,078 2,300 Memo: PAT unadj.1........ 5,325 8,505 11,747 2,192 2,688 3,011 3,304 3,132 2,299 1,871 2,040 2,268 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 Dividends............................. 1,497 1,606 1,839 407 410 441 441 r476 481 483 485 519 Motor vehicles and equipment (9 corps.): Sales...................................... 70,653 83,016 80,386 17,959 21,186 18,467 20,979 19,443 21,497 18,863 22,275 21,005 Total revenue....................... 71,139 83,671 80,882 18,142 21,362 18,597 21,146 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 Profits after taxes................. 3,626 3,992 1,686 431 709 369 657 133 527 -127 451 328 Memo: PAT unadj.1........ 3,640 4,078 1,742 450 763 361 648 147 586 -12 455 280 Dividends.............................. 1,762 2,063 1,538 404 817 384 382 386 385 294 276 274 1 Profits after taxes unadjusted are as reported by the individual com of returns, allowances, and discounts, and exclude excise taxes paid di panies. These data are not adjusted to eliminate differences in accounting rectly by the company. Total revenue data include, in addition to sales, treatments of special charges, credits, and other nonoperating items. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not Note—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 Bulletin, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 1974—1.. 128.3 49.4 78.9 30.0 48.9 1969. 83.5 39.7 43.8 22.6 21.2 II. 129.6 52.6 77.1 30.9 46.2 1970, 71.5 34.5 37.0 22.9 14.1 Ill 146.7 59.3 87.4 31.7 55.7 IV. 123.9 49.2 74.7 31.7 43.0 1971, 82.0 37.7 44.3 23.0 21.3 1972 96.2 41.4 54.6 24.6 30.0 1975—1.. 97.1 37.5 59.6 32.1 27.5 1973 117.0 48.2 68.8 27.8 40.9 II. 108.2 41.6 66.6 32.6 34.0 1974 132.1 52.6 79.5 31.1 48.4 Ill 129.5 50.7 r78.8 33.5 45.3 1975. 116.8 45.6 71.2 32.8 38.4 IV. 132.4 52.5 79.9 33.1 46.8 1976—1*. 140.8 56.5 84.3 33.3 51.0 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 ov .S t . , i Other G U o . v S t . .1 Other taxes 197 0 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 197 1 203.6 529.6 53.3 11.0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 197 2 221.3 573.5 57.5 9.3 3.4 240.0 215.2 48.1 352.2 4.0 230.4 15.1 102.6 1973—III 239.5 625.3 58.9 9.7 3.0 264.4 238.0 51.3 385.8 4.4 250.2 16.5 114.7 IV 242.3 643.2 61.6 11.0 3.5 266.1 246.7 54.4 401.0 4.3 261.6 18.1 117.0 1974—1.. 250.1 666.2 59.4 12.1 3.2 276.2 258.4 56.9 416.1 4.5 266.5 20.6 124.5 II. 253.9 685.4 58.8 10.7 3.4 289.8 269.2 53.5 431.5 4.7 278.5 19.0 129.1 III 259.5 708.6 60.3 11.0 3.5 295.5 282.1 56.1 449.1 5.1 287.0 22.7 134.3 IV 261.5 712.2 62.7 11.7 3.5 289.7 288.0 56.6 450.6 5.2 287.5 23.2 134.8 1975—1.. 260.4 698.4 60.6 12.1 3.2 281.9 285.2 55.4 438.0 5.3 271.2 21.8 139.8 II. 269.0 703.2 63.7 12.7 3.3 284.8 281.4 57.3 434.2 5.8 270.1 17.7 140.6 III 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 IV 274.1 731.6 68.1 19.4 3.6 294.6 285.8 60.0 457.5 6.4 281.6 20.7 148.8 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates. offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable d N ur o a n b le Mining R ro a a i d l Air Other Electric and G a o s th er n C i o c m ati m on u s Other1 A (S . . R A . . ) 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—11 ................ 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—Ir................ 25.87 4.78 6.18 .92 .49 .26 .72 4.18 .62 2.92 4.82 114.72 II................ 30.51 5.64 7.43 .95 .56 .43 .86 4.90 .84 8.88 121.14 Ill............... 30.49 5.73 7.58 .95 .56 .34 .80 4.87 .96 8.'71 123.00 1 Includes trade, service construction, finance, and insurance. Note.—Dept, of Commerce estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A42 REAL ESTATE CREDIT o JUNE 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 1975 1976 1972 1973 1974 I II III IV I ALL HOLDERS............................................. §64,825 634,954 688,652 695,369 709,153 r725,543 *■741,547 754,320 1- to 4-family............................................... 345,372 384,738 412,168 415,607 425,132 r436,420 *•447,350 456,150 Multifamily.................................................. 76,667 85,296 91,222 91,522 91,733 r92,073 '92,093 92,759 Commercial.................................................. 107,349 125,572 140,965 142,701 145,353 *•149,072 *•153,119 155,309 Farm............................................................. 35,437 39,348 44,297 45,539 46,935 '47,978 r48,985 50,102 PRIVATE FINANCIAL INSTITUTIONS.. 450,000 505,400 542,552 546,689 558,179 '570,049 '581,486 591,146 1- to 4-family................................................ 288,018 320,420 340,007 342,313 350,198 *•358,184 '365,371 372,093 Multifamily.................................................. 59,398 64,750 68,161 68,095 68,453 *■68,688 '68,807 69,543 Commercial.................................................. 92,063 108,735 121,948 123,684 126,634 *•130,153 '134,100 136,190 Farm............................................................. 10,521 11,495 12,436 12,597 12,894 *•13,024 '13,208 13,320 99,314 119,068 132,105 131,903 133,012 '134,514 ' 136,186 137,386 1- to 4-family............................................ 57,004 67,998 74,758 74,696 75,356 *•76,149 '77,018 77,706 Multifamily............................................... 5,778 6,932 7,619 7,176 6,816 *•6,363 '5,915 5,962 Commercial.............................................. 31,751 38,696 43,679 43,924 44,598 *•45,694 '46,882 47,288 Farm......................................................... 4,781 5,442 6,049 6,107 6,242 *•6,308 '6,371 6,430 Mutual savings banks................................... 67,556 73,230 74,920 75,157 75,796 '76,490 r77,249 77,550 1- to 4-family............................................ 41,650 44,246 44,670 44,795 45,175 *•45,588 '46,041 46,219 Multifamily............................................... 15,490 16,843 17,234 17,291 17,433 *-17,593 '17,767 17,837 Commercial.............................................. 10,354 12,084 12,956 12,996 13,112 *•13,233 '13,364 13,416 Farm......................................................... 62 57 60 75 76 *•76 '77 78 206,182 231,733 249,293 252,442 261,336 270,600 278,693 286,575 1- to 4-family........................................... 167,049 187,750 201,553 204,099 211,290 218,483 224,710 230,776 Multifamily.............................................. 20,783 22,524 23,683 23,831 24,409 24,976 25,417 25,846 Commercial.............................................. 18,350 21,459 24,057 24,512 25,637 27,141 28,566 29,953 76,948 81,369 86,234 87,187 88,035 88,445 89,358 89,635 1- to 4-family............................................ 22,315 20,426 19,026 18,723 18,377 17,964 '17,602 17,392 Multifamily.............................................. 17,347 18,451 19,625 19,797 19,795 19,756 '19,708 19,898 Commercial.............................................. 31,608 36,496 41,256 42,252 43,287 44,085 '45,288 45,533 Farm......................................................... 5,678 5,996 6,327 6,415 6,576 6,640 6,760 6,812 FEDERAL AND RELATED AGENCIES.. 45,790 55,664 72,380 76,010 79,952 84,522 89,039 92,102 1- to 4-family............................................... 30,170 35,579 46,322 48,455 51,195 54,697 58,440 60,518 Multifamily.................................................. 6,063 8,364 11,329 11,995 12,348 12,753 12,954 13,184 Commercial.................................................. Farm............................................................. 9,557 11,721 14,729 15,560 16,409 17,072 17,645 18,400 Government National Mortgage Association.. 5,113 4,029 4,846 5,599 5,610 6,534 7,438 7,619 1- to 4-family............................................ 2,513 1,455 2,248 2,787 2,787 3,692 4,728 4,886 Multifamily.............................................. 2,600 2,574 2,598 2,812 2,823 2,842 2,710 2,733 Commercial.............................................. Farmers Home Administration..................... 837 1,200 1,600 1,700 1,800 1,900 2,000 2,100 1- to 4-family............................................ 387 550 734 780 826 872 918 964 Farm........................................................ 450 650 866 920 974 1,028 1,082 1,136 Federal Housing and Veterans Administra tions ....................................................... 3,338 3,476 4,015 4,047 4,297 4,681 4,970 5,270 1- to 4-family............................................ 2,199 2,013 2,009 1,879 1,915 1,951 1,990 2,049 Multifamily............................................... 1,139 1,463 2,006 2,168 2,382 2,730 2,980 3,221 Federal National Mortgage Association.... 19, 791 24,175 29,578 29,754 30,015 31,055 31,824 31,482 1- to 4-family............................................ 17,697 20,370 23,778 23,743 23,988 25,049 25,813 25,562 Multifamily.............................................. 2,094 3,805 5,800 6,011 6,027 6,006 6,011 5,920 Federal land banks (farm only)................. 9,107 11,071 13,863 14,640 15,435 16,044 16,563 17,264 Federal Home Loan Mortgage Corporation. 1,789 2,604 4,586 4,608 4,944 5,033 4,987 4,602 1- to 4-family............................................ 1,754 2,446 4,217 4,231 4,543 4,632 4,588 4,247 Multifamily.............................................. 35 158 369 377 401 401 399 355 GNMA Pools................................................ 5,815 9,109 13,892 15,662 17,851 19,275 21,257 23,765 1- to 4-family............................................ 5,620 8,745 13,336 15,035 17,136 18,501 20,403 22,810 Multifamily............................................... 195 364 556 627 715 774 854 955 INDIVIDUALS AND OTHERS2................ 69,035 73,890 73,720 72,670 71,022 70,972 '71,022 71,072 1- to 4-family................................................ 27,184 28,739 25,839 24,839 23,739 23,539 23,539 23,539 Multifamily.................................................. 11,206 12,182 11,732 11,432 10,932 10,632 '10,332 10,032 15,286 16,837 19,017 19,017 18,719 18,919 19,019 19,119 Farm............................................................. 15,359 16,132 17,132 17,382 17,632 17,882 18,132 18,382 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
JUNE 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 m re A - d - a g n V u t A e a e r - d Pur- 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 ■ T7 T V T V - T W ’/A v A A t C i v o e o n n n a l c P ha u s r e s Sales p d M e u r r a i i d o n e d g s O t i a n u n g t d 1971............. 17,791 12,681 5,110 3,574 336 9,828 6,497 968 821 147 778 64 182 1972............. 19,791 14,624 5,112 3,699 211 8,797 8,124 1,789 1,503 286 1,297 408 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—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 c2,884 51 296 43 87 Mar. . 31,482 19,431 9,473 85 22 405 3,120 4,602 1,787 2,185 95 98 93 128 Apr... 31,389 19,368 9,431 103 213 2,788 i Includes conventional loans not shown separately. For FHLMC: Holdings and transactions cover participations as well as Note.—Data from FNMA and FHLMC, respectively. whole loans. Holdings include loans used to back bond issues guranteed For FNMA: Holdings include loans used to back bond issues guaranteed by GNMA. Commitments cover the conventional and Govt.-underby GNMA. Commitments include some multifamily and nonprofit written loan programs. hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA’s free market auction system, and through the FNMA- GNMA Tandem Plans. FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES Date of auction Item 1975 1976 Dec. 29 Jan.12 Jan. 26 Feb. 9 Feb. 23 Mar. 8 Mar. 22 Apr. 5 Apr. 19 May 3 May 17 June 1 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................ 95.3 58.4 103.9 252.2 126.9 299.9 146.3 106.2 132.1 483.3 634.3 349.5 Accepted............................... 52.7 31.5 57.7 179.9 81.2 171.9 121.6 56.2 60.1 222.3 321.4 224.7 Conventional loans Offered1................................. 41.8 42.7 33.4 57.8 44.0 75.4 46.2 56.4 55.3 110.7 128.8 131.4 Accepted............................... 11.8 32.1 24.7 36.9 23.3 45.0 33.7 31.8 33.4 60.1 68.9 90.5 Average yield (per cent) on short term commitments2 Govt.-underwritten loans..... 9.29 9.13 9.07 9.07 9.04 9.06 9.03 8.94 c8.83 8.94 9.13 9.20 Conventional loans.................. 9.35 9.28 9.22 9.17 9.14 9.15 9.13 c9.05 9.00 9.09 9.24 9.31 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee - FNMA commitment fees and FNMA stock purchase and holding require paid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A44 REAL ESTATE CREDIT □ JUNE 1976 MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) June 30, Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Holder 1974 1974 1974 1975 1975 1975 1975 All holders................................................... 137.8 138.6 140.3 142.0 143.0 144.9 147.0 FHA......................................................... 84.9 84.1 84.1 84.3 85.0 85.1 85.4 VA............................................................ 52.9 54.5 56.2 57.7 58.0 59.8 61.6 Commercial banks...................................... 11.0 10.7 10.4 10.5 9.6 9.7 9.4 FHA......................................................... 7.6 7.4 7.2 7.2 6.4 6.4 6.3 VA............................................................ 3.4 3.3 3.2 3.3 3.2 3.3 3.1 Mutual savings banks................................. 27.9 27.8 27.5 27.3 27.2 27.0 27.4 FHA......................................................... 15.1 15.0 14.8 14.7 14.7 14.5 14.7 VA............................................................ 12.8 12.8 12.7 12.6 12.5 12.5 12.7 Savings and loan assns............................... V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 29.7 } 29.9 } 29.9 } 29.9 } 30.2 } 30.4 \ 30.6 Life insurance cos........................................ 13.1 12.9 12.7 12.5 12.2 12.1 11.8 FHA......................................................... 8.8 8.7 8.6 8.4 8.2 8.1 7.9 VA............................................................ 4.3 4.2 4.2 4.1 4.0 4.0 3.9 Others.......................................................... 56.1 57.4 59.9 61.6 62.2 65.7 67.8 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 Number co a m m m ou it n te t d Loan Contract Loanof loans (m ( i d l o li l o la n r s s ) of ( o th a f m o d u o o s l u a la n n r t d s ) s (p in e r t r a e c r te e e s n t t ) (y M rs a . t / u m r o it s y .) (p to e r r - a v t c i a e o l n u t e ) C ( a p t p e io r it n a c l e r i n z a t a t ) e co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 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 1975........................... 599 1,717.0 2,866 10.22 21/9 73.8 10.8 1.33 10.6 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
JUNE 1976 □ REAL ESTATE CREDIT AND CONSUMER CREDIT A45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Terms i Yields (per cent) in insured primary market loans—Yield Period in private C ra o c te e n n t ( r t p ) a e c r t ( F p c e e h r e a s c r g e a n e n s t) d 2 M (y a e tu ar r s i ) ty L (p o e a r r n a t / c i p e o r n ic t) e pr o P i f c u e d r o c ( h l t l h a a o s r u e s) s. (t a d h m L o o l o u o la a s u r . n n s o ) t f F s H er L ie B s B 3 s H er U ie D s4 se m c a o r n k d e a t r 5 y 197 1 . 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 197 2 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 197 3 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 197 4 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 197 5 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 1975—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. 8.67 1.60 27.1 76.4 46.8 35.0 8.93 8.95 Apr.: 8.72 1.36 27.1 74.6 48.6 35.6 8.94 8.90 8.82 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—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 Apr.P 11.08 11.66 12.95 13.16 17.04 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 □ JUNE 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Amounts outstanding (end of period) TOTAL...................................................... 148,273 158,101 161,819 158,390 159,200 161,819 160,745 160,094 160,621 162,236 By holder: Commercial banks............................. 71,871 75,846 75,710 75,286 75,174 75,710 75,342 75,010 75,103 76,013 Finance companies............................ 37,243 38,925 38,932 38,411 38,642 38,932 38,737 38,660 38,665 39,003 Credit unions..................................... 19,609 22,116 25,354 24,706 24,934 25,354 25,250 25,492 26,025 26,403 Retailers1............................................ 16,395 17,933 18,328 16,444 16,860 18,328 17,771 17,192 16,987 17,060 Others2............................................... 3,155 3,281 3,495 3,543 3,590 3,495 3,645 3,740 3,841 3,757 By type of credit: 51,274 52,209 53,629 53,286 53,479 53,629 53,318 53,519 54,117 55,059 31,502 30,994 30,198 30,259 30,235 30,198 29,862 29,872 30,117 30,682 Purchased................................... 18,997 18,687 17,620 17,848 17,761 17,620 17,500 17,409 17,471 17,742 Direct.......................................... 12,505 12,306 12,578 12,411 12,474 12,578 12,363 12,463 12,646 12,940 11,927 12,435 13,364 13,203 13,325 13,364 13,407 13,490 13,624 13,869 7,456 8,414 9,653 9,403 9,491 9,653 9,612 9,704 9,908 10,051 Others............................................. 389 366 414 421 428 414 437 453 468 457 Mobile homes: 8,340 8,972 8,420 8,519 8,502 8,420 8,351 8,279 8,233 8,188 Finance companies......................... 3,378 3,570 3,504 3,498 3,519 3,504 3,464 3,440 3,420 3,409 7,453 8,398 8,301 8,374 8,361 8,301 8,263 8,254 8,267 8,300 4,083 4,694 4,813 4,824 4,827 4,813 4,777 4,757 4,767 4,816 Revolving credit: Bank credit cards........................... 6,838 8,281 9,078 8,450 8,500 9,078 9,150 8,987 8,842 8,959 Bank check credit........................... 2,254 2,797 2,883 2,834 2,822 2,883 2,911 2,912 2,876 2,882 All other............................................. 68,736 73,874 76,004 73,430 74,018 76,004 75,287 74,703 74,868 75,440 18,854 20,108 20,318 20,401 20,289 20,318 20,290 20,203 20,270 20,487 Personal loans............................ 12,873 13,771 14,035 14,005 13,943 14,035 14,049 14,010 14,034 14,192 Finance companies, total.............. 21,021 21,927 21,465 21,037 21,158 21,465 21,279 21,152 21,078 21,211 Personal loans............................ 16,587 17,176 17,179 16,822 16,942 17,179 17,035 16,952 16,922 17,047 Credit unions................................. 11,564 13,037 14,937 14,559 14,692 14,937 14,878 15,020 15,333 15,557 Retailers.......................................... 16,395 17,933 18,328 16,444 16,860 18,328 17,771 17,192 16,987 17,060 Others............................................. 902 869 956 989 1,019 956 1,069 1,136 1,200 1,125 Net change (during period)3 TOTAL...................................................... 20,826 9,824 3,719 830 805 894 1,295 1,169 1,513 1,436 By holder: 11,002 3,971 -134 309 233 310 208 475 572 561 Finance companies............................. 5,155 1,682 7 36 157 34 260 198 302 347 2,696 2,507 3,237 255 270 471 387 420 514 392 1,632 1,538 395 258 84 125 185 58 108 177 Others................................................. 341 126 214 -29 61 -44 254 17 16 -43 By type of credit: Automobile, total.............................. 6,980 935 1,420 389 404 540 488 632 654 710 Commercial banks......................... 4,196 -508 -796 164 163 260 -44 293 239 351 Purchased................................... 2,674 -310 -1,067 76 33 48 40 34 102 166 Direct.......................................... 1,523 -199 272 88 130 213 -84 259 138 186 1,753 508 929 103 144 89 275 174 230 206 Credit unions................................. 1,024 958 1,239 122 91 184 203 165 192 151 Other.............................................. 7 -23 48 1 5 6 54 * -7 1 Mobile homes: Commercial banks......................... 1,933 634 -553 -62 -6 -61 -26 -45 -14 -49 Finance companies......................... 462 192 -66 -7 26 -10 -28 -19 -2 -9 Home improvement, total................ 1,196 946 -100 -6 38 23 106 57 23 18 Commercial banks......................... 483 612 114 23 42 41 30 32 35 27 Revolving credit: Bank credit cards........................... 1,428 1,442 798 78 29 -49 107 133 224 134 479 543 86 17 2 13 23 19 12 32 All other............................................. 8,344 5,141 2,133 420 312 440 625 392 615 600 Commercial banks, total............... 2,479 1,257 213 89 2 107 118 43 75 67 Personal loans............................ 1,491 900 265 119 -6 149 100 33 42 67 Finance companies, total.............. 2,520 906 -462 -27 20 -4 20 49 117 176 Personal loans............................ 1,675 589 -3 -7 15 23 40 114 77 157 Credit unions................................. 1,591 1,473 1,900 127 173 274 173 242 307 228 Retailers.......................................... 1,632 1,538 395 258 84 125 185 58 108 177 Others............................................. 122 -33 87 -28 33 -61 129 * 7 -48 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
JUNE 1976 □ CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND REPAYMENTS (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Extensions1 TOTAL...................................................... 164,527 166,170 166,833 14,832 14,877 15,295 16,205 15,824 16,318 15,775 By holder: Commercial banks............................. 72,216 72,602 73,186 6,518 6,599 6,796 6,687 6,939 7,102 6,729 43,221 41,809 39,543 3,412 3,712 3,530 4,231 4,054 3,992 3,944 Credit unions..................................... 21,143 22,403 24,151 2,187 1,995 2,381 2,253 2,248 2,389 2,386 Retailers2............................................ 25,440 27,034 27,369 2,531 2,302 2,431 2,578 2,347 2,596 2,544 Others3............................................... 2,507 2,322 2,584 183 268 158 456 236 238 171 By type of credit: Automobile, total.............................. 46,486 43,431 46,530 4,189 4,218 4,405 4,511 4,378 4,537 4,438 Commercial banks......................... 29,368 26,407 26,693 2,434 2,460 2,591 2,361 2,545 2,584 2,560 Purchased................................... 17,497 15,575 14,758 1,333 1,310 1,450 1,314 1,377 1,463 1,427 Direct......................................... 11,871 10,831 11,936 1,101 1,150 1,141 1,047 1,168 1,121 1,134 Finance companies........................ 9,685 8,851 9,651 836 831 897 987 912 954 946 Credit unions................................. 7,009 7,788 9,702 878 885 875 1,068 881 964 891 424 385 484 41 42 42 95 40 35 40 Mobile homes: 4,437 3,486 2,349 198 233 203 209 211 230 182 Finance companies........................ 1,673 1,627 1,018 81 97 88 79 71 81 79 Home improvement, total................. 4,828 4,854 4,333 392 409 418 459 429 421 430 Commercial banks......................... 2,489 2,790 2,515 238 243 253 231 241 247 249 Revolving credit: Bank credit cards........................... 13,862 17,098 19,567 1,698 1,752 1,719 1,840 1,931 2,046 1,907 Bank check credit.......................... 3,373 4,228 4,214 357 348 412 397 407 390 405 All other............................................. 89,864 91,455 88,818 7,915 7,819 8,051 8,711 8,397 8,613 8,335 Commercial banks, total............... 18,683 18,602 17,844 1,593 1,562 1,619 1,649 1,604 1,605 1,427 12,927 13,177 12,623 1,144 1,076 1,178 1,145 1,139 1,135 1,036 Finance companies, total.............. 31,032 30,764 28,654 2,474 2,771 2,527 3,139 3,041 2,941 2,889 Personal loans............................ 18,915 18,827 18,406 1,613 1,674 1,513 1,980 1,916 1,801 1,807 Credit unions................................. 13,768 14,228 13,992 1,269 1,074 1,461 1,141 1,319 1,376 1,446 25,440 27,034 27,369 2,531 2,302 2,431 2,578 2,347 2,596 2,544 Others............................................. 941 827 959 48 111 14 204 86 93 29 Repayments1 TOTAL...................................................... 143,701 156,346 163,113 14,002 14,072 14,401 14,910 14,656 14,805 14,339 By holder: Commercial banks............................. 61,214 68,631 73,320 6,209 6,367 6,486 6,479 6,464 6,530 6,168 Finance companies............................ 38,066 40,127 39,536 3,376 3,555 3,496 3,971 3,856 3,690 3,597 18,447 19,896 20,914 1,932 1,725 1,910 1,866 1,828 1,875 1,994 Retailers2............................................ 23,808 25,496 26,974 2,273 2,218 2,306 2,393 2,289 2,488 2,367 Others3............................................... 2,166 2,196 2,370 212 208 202 202 219 222 214 By type of credit: Automobile, total.............................. 39,506 42,496 45,110 3,800 3,814 3,865 4,023 3,746 3,883 3,728 Commercial banks......................... 25,172 26,915 27,489 2,271 2,297 2,331 2,405 2,252 2,345 2,209 Purchased................................... 14,822 15,886 15,825 1,257 1,277 1,402 1,274 1,343 1,361 1,261 Direct.......................................... 10,348 11,028 11,663 1,013 1,020 928 1,131 909 983 948 Finance companies........................ 7,932 8,343 8,722 733 687 808 712 738 724 740 Credit unions................................. 5,985 6,830 8,463 756 794 691 865 716 772 740 Others............................................. 417 408 436 40 37 36 41 40 42 39 Mobile homes:. Commercial banks......................... 2,504 2,852 2,902 260 239 264 235 256 244 231 Finance companies........................ 1,211 1,435 1,084 88 72 98 107 90 83 88 Home improvement, total................. 3,632 3,908 4,434 398 371 395 353 372 398 412 2,006 2,178 2,400 214 202 212 201 209 212 222 Revolving credit: Bank credit cards 12,434 15,656 18,769 1,619 1,723 1,768 1,733 1,798 1,822 1,773 Bank check credit.......................... 2,894 3,685 4,128 340 346 399 374 388 378 373 All other............................................. 81,520 86,314 86,689 7,496 7,507 7,611 8,086 8,005 7,998 7,735 Commercial banks, total............... 16,204 17,345 17,635 1,504 1,560 1,512 1,531 1,561 1,530 1,360 Personal loans............................ 11,436 12,277 12,361 1,025 1,082 1,029 1,045 1,106 1,093 969 Finance companies, total.............. 28,512 29,858 29,116 2,501 2,751 2,531 3,119 2,992 2,824 2,713 Personal loans............................ 17,240 18,238 18,403 1,620 1,659 1,490 1,940 1,802 1,724 1,650 12,177 12,755 12,092 1,142 901 1,187 968 1,077 1,069 1,218 Retailers.......................................... 23,808 25,496 26,974 2,273 2,218 2,306 2,393 2,289 2,488 2,367 Others............................................. 819 860 872 76 77 75 75 86 86 77 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 □ JUNE 1976 MARKET GROUPINGS (Seasonally adjusted, 1967 = 100) 1967 1975 1975 1976 aver- Grouping por age tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Febr. Mar. Apr.? May6 100.0 113.8 110.1 111 1 112.2 114.2 116.2 116.7 117.6 118.4 119.5 120.8 121 .7 122.3 I ZJ . Z 62.21 115.7 113.4 114 2 115.3 115.8 116.9 116.9 118.0 119.3 120.2 121.4 121.4 122.0 1ZZ. o Consumer goods.......................... 2 4 2 0 8 8. . . 4 5 9 3 2 5 1 1 1 1 0 2 5 3 4 . . . 6 5 0 1 1 1 1 0 2 3 2 1 . . . 9 2 7 1 1 m 0 1 ? 4 .5 2 3 1 1 1 2 1 0 5 5 2 . . . 5 2 7 1 1 1 1 0 2 5 5 2 . . . 3 7 9 1 1 1 1 0 2 6 6 2. . .8 8 9 1 1 1 1 0 2 7 2 7 . . . 6 0 0 1 1 1 0 1 2 2 7 8 . . . 5 9 9 1 1 1 0 1 3 3 9 0 . . . 5 2 0 1 1 1 1 3 0 9 0 3 . . . 9 8 6 1 1 1 3 0 20 4 2 . . . 8 0 7 1 1 13 2 0 0 1 5 . . . 8 0 7 1 1 1 2 0 3 1 5 2 . . . 8 4 4 1 1 i 1 1 U J' 2 XJ' O 2 X . . . 6 Q y 7 o Intermediate products..................... 13.26 116.3 112.4 11? 8 114.3 115.4 116.6 117.0 118.5 120.3 122 4 123.5 124.0 124.1 M1 Z'Xj . D^ 37.79 110.6 104.9 106.0 106.8 111.5 115.1 116.5 116.8 116.8 118.3 120.0 122.2 1ZZ. / IZj • o Consumer goods 2 7 . . 8 8 4 6 1 9 1 9 2 . . 1 5 1 9 1 7 0 . . 6 5 1 i 0 n 3 4 2 1 1 1 0 5 6 . .9 9 1 1 1 0 6 5 . . 1 9 1 1 1 0 8 6 . .7 3 1 1 1 0 8 8 . .9 3 1 1 1 0 8 9 . .3 8 1 1 1 1 9 1 . .3 5 1 1 2 1 0 1. . 6 9 1 1 2 1 3 4 . . 1 8 1 1 2 1 4 6 . .2 9 1 1 2 1 6 7 . .2 5 1 11 2 6 7 . . 9 7 1.87 86.9 86.3 93 2 97.7 96.8 97.9 101.2 100.0 100.1 99’.2 105.2 108.5 113.4 113.8 Auto parts and allied goods........ .97 122.3 119.3 122.8 124.8 123.2 123.5 123.9 127.2 132.7 135.2 133.3 131.0 124.5 122.9 5.02 120.2 117.8 118 8 121.0 121.9 125.0 123.6 124.2 124.1 126.2 127.7 129.9 131.7 133.6 Appliances, TV, and radios........ 1.41 101.9 102.4 103.5 104.8 106.5 108.4 105.4 104.6 106.0 111 .4 113.2 118.3 123.2 126.4 Appliances and A/C................ .92 118.4 118.4 118,3 118.9 122.2 124.1 123.4 122.8 123.9 128.5 132.6 134.4 138.9 TV and home audio................ .49 70.8 Carpeting and furniture.............. 1.08 133.8 128.6 131 .1 135.5 136.0 137.6 137.9 139.3 138.7 139.1 138 0 140 7 143 5 2.53 124.5 121.7 1?? 1 124.0 124.5 129.0 127.4 128.8 128.1 129.1 131.6 131.9 131 ‘.2 131.5 Clothing............................................ 2 4 0 . . 3 6 2 7 1 9 2 9 8 . . 0 4 1 9 2 4 5. .4 3 J 9 ? 7 7 7 2 1 1 2 0 9 1 . .6 0 1 1 2 0 9 2 . .0 4 1 1 3 0 0 1 . .5 1 1 1 3 0 0 4 . .5 5 1 1 3 0 2 6 . .2 7 1 1 3 0 4 8 . .2 4 1 1 3 09 4 . . 5 6 1 11 3 0 5 . . 1 4 1 10 3 9 4 . . 1 4 135.1 136.3 Consumer staples............................. 16.34 136.2 133.5 134.9 136.3 136.6 137.8 137.3 139.7 141 .4 141 .3 142.0 141.1 141.6 142.9 Consumer foods and tobacco.... 8.37 125.3 122.4 124.2 125.5 125.8 126.4 127.2 130.0 130.6 130.4 130.4 128.6 129.3 131.0 Nonfood staples........................... 7.98 147.7 145.3 146.4 147.7 148.0 149.9 148.1 150.0 152.7 152.7 154.1 154.2 154.4 155.1 Consumer chemical products.. 2.64 161.3 158.4 159.2 161.2 160.4 161.6 161.7 167.9 169.0 167.9 169.8 169.9 167.8 Consumer paper products....... 1.91 125.1 122.8 123.3 124.1 126.7 127.7 126.4 125.5 131.9 132.7 134.1 132.3 133.5 Consumer fuel and lighting. . . 3.43 149.9 147.8 149.4 150.4 150.3 153.2 149.5 149.8 151.7 152.3 153.4 154.5 155.9 Residential utilities............... 2.25 161.8 160.9 161.3 160.5 161.1 164.8 160.1 161.5 163.1 165.8 Equipment Business equipment.................................. 12.74 116.7 115.0 113.9 113.9 114.9 115.6 115.7 116.5 118.2 118.4 120.4 120.9 121.8 123.8 Industrial equipment....................... 6.77 116.8 115.3 114.0 113.3 113.4 114.5 115.4 116.3 118.4 118.7 119.5 120.3 121.5 123.7 Building and mining equip.......... 1.45 133.7 131.7 127.7 126.9 128.3 129.7 133.1 136.5 138.0 138.8 138.0 136.5 137.9 140.2 Manufacturing equipment.......... 3.85 106.0 105.0 104.3 105.5 105.2 104.5 104.0 103.6 105.9 106.1 108.1 109.8 111.2 113.0 Power equipment......................... 1.47 128.2 126.2 125.8 120.3 120.8 125.7 127.9 129.3 131.3 131.7 130.5 131.6 132.3 135.2 Commercial, transit, farm equip.... 5.97 116.6 114.7 113.9 114.6 116.4 116.9 116.2 116.7 118.0 118.2 121.4 121.5 122.0 124.0 Commercial equipment................ 3.30 125.1 121.5 120.7 123.0 123.4 122.6 123.3 123.3 125.3 125.7 127.4 129.2 129.4 129.6 Transit equipment....................... 2.00 98.1 98.6 98.0 98.0 101.5 105.0 100.4 101.7 102.9 102.5 108.6 107.4 107.2 112.6 Farm equipment........................... .67 130.4 129.0 127.3 122.9 127.7 124.3 128.0 128.6 126.8 128.5 130.1 126.2 129.8 Defense and space equipment................ 7.68 81.8 82.7 82.9 82.6 81.4 81.6 81.1 79.4 79.0 79.3 79.1 78.8 78.2 78.9 Military products............................. 5.15 80.5 82.0 82.0 82.1 80.6 80.7 80.2 77.3 77.0 76.5 76.4 76.0 75.2 75.5 Intermediate products Construction products......................... 5.93 112.4 107.6 106.8 108.0 109.3 112.0 112.5 112.5 114.2 116.9 117.6 118.4 118.7 118.2 Misc. intermediate products............... 7.34 119.7 116.2 117.4 119.3 120.3 120.3 120.7 123.3 125.3 127.1 128.2 128.7 128.4 Materials Durable goods materials......................... 20.91 106.5 100.2 99.8 100.3 106.1 108.7 110.2 110.9 110.8 113.0 115.2 116.9 117.9 119.2 Consumer durable parts................. 4.75 94.0 87.7 90.8 92.8 101.7 103.0 102.4 102.8 103.1 104.8 106.9 108.6 108.2 109.2 Equipment parts.............................. 5.41 106.4 102.1 97.3 96.8 100.7 102.4 105.2 107.9 107.9 108.7 109.2 110.2 111 .2 112.2 Durable materials n.e.c.................... 10.75 112.1 104.7 105.1 105.3 111 .0 114.5 116.3 116.1 115.7 118.9 121.9 124.0 125.5 127.1 Nondurable goods materials.................. 13.99 115.0 109.5 112.3 114.0 118.3 123.4 125.0 124.9 125.7 126.4 127.3 128.7 129.6 130.4 Textile, paper, and chem. mat........ 8.58 121.2 113.2 117.0 118.9 126.0 133.9 136.1 136.3 137.7 138.8 139.8 141.0 142.4 143.5 Nondurable materials n.e.c............. 5.41 105.1 103.7 105.1 106.2 106.0 106.7 107.3 106.9 106.6 106.8 107.5 109.3 109.3 109.7 Fuel and power, industrial................. 2.89 118.7 118.0 119.5 121.1 118.4 121.3 120.6 120.7 117.2 118.6 120.3 127.4 123.7 125.3 Supplementary groups Home goods and clothing................... 9.34 110.3 106.9 109.1 112.0 112.8 114.2 114.7 115.8 116.7 118.5 119.6 120.3 121.8 123.4 Containers ....................... 1.82 129.9 124.3 128.4 132.8 133.5 142.7 137.6 133.9 133.3 140.8 142.4 148.1 143.4 Gross value of products in market structure (In billions of 1963 dollars) Products, total............................. 286.3 408.6 414.5 416.1 418.1 426.1 425.8 430.9 435.1 437.0 442.7 444.5 445.4 445.4 Final products...................................... 221.4 319.4 325.0 325.2 326.3 332.9 333.7 336.5 338.9 339.7 344.0 345.4 346.7 347.4 Consumer goods.......................... 156.3 217.8 223.6 224.9 225.4 230.8 231.7 234.9 237.0 237.2 239.6 240.9 241.9 241.6 Equipment.................................... 65.3 101.5 101.3 100.5 100.9 102.3 101.7 101.8 102.0 102.4 104.2 104.3 104.7 105.9 Intermediate products..................... 64.9 89.2 89.6 91.1 92.9 92.9 93.0 c94.1 96.0 97.7 98.6 99.1 98.8 97.8 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ INDUSTRIAL PRODUCTION A49 INDUSTRY GROUPINGS (Seasonally adjusted, 1967 = 100) 1 p 9 r 6 o 7 1975 1975 por aver Grouping tion age May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Apr.*> May6 Manufacturing................................ 88.55 112.2 108.2 109.5 110.6 112.8 114.7 115.8 116.3 117.0 118.1 119.9 120.3 121.1 122.0 Durable...................................... 52.33 105 * 102.5 103.2 103.4 105.4 107.0 107.6 107.8 108.1 109.0 111.3 111 .4 112.9 114.3 Nondurable................................. 36.22 121.4 116.2 118.6 120.8 123.4 125.7 127.2 128.7 130.0 131 .4 132.3 133.2 132.9 133.2 Mining and utilities....................... 11.45 127.5 126.5 126.8 127.5 127.0 127.8 127.0 127.6 127.7 129.3 129.2 131.8 131 .3 132.2 Mining........................................ 6.37 106.6 105.9 106.3 106.4 105.0 105.3 106.4 106.9 105.4 105.5 104.8 108.7 106. 107.9 Utilities....................................... 5.08 153.7 152.3 152.6 153.9 154.6 156.1 152.9 153.9 155.7 159.2 159.9 160.9 162.1 162.7 Durable manufactures Primary and fabricated metals.... 12.55 105.6 99.8 100.8 100.7 104.1 106.1 105.9 107.1 105.6 108.5 112.0 111.0 113.5 115.7 Primary metals........................... 6.61 97.2 89.9 91. 92 96.5 97.2 97.0 98.1 95.1 99.9 104.7 102. 106.3 110.8 Iron and steel, subtotal.......... 4.23 96.1 90.1 88.7 87.0 90.4 91.3 93.2 96.0 92.2 96.2 101.4 98.4 102.5 106.5 Fabricated metal products........ 5.94 114.8 100.9 110.9 109.7 112.7 116.1 115.9 117.3 117.3 117.8 120.0 120.0 121 .5 121.1 Machinery and allied goods............ 32.44 104.0 101.7 102.3 102.4 103.7 105.0 105.8 106.2 106.8 106.7 108.4 109.1 110.3 111.4 Machinery................................... 17.39 112.8 109.0 108.2 108.4 110.0 111.7 112.9 114.2 115.1 115.3 117.3 118.3 119.7 120.8 Nonelectrical machinery........ 9.17 118.7 113.7 112.3 112.9 115.1 116.7 117.7 119.2 119.9 119.9 121.4 122.1 123.4 124.3 Electrical machinery.............. 8.22 106.2 103. 103.8 103.4 104.4 106.1 107.6 108.6 109.6 110.4 112.6 114.1 115.7 117.0 Transportation equipment........ 9.29 88.4 87.6 90.5 91 .0 92.9 94.3 94.7 94.1 95.5 94.4 96.3 97.4 98. 101.1 Motor vehicles and parts 4.56 98.1 95.0 100.0 103.2 107.2 110.1 111.0 109.4 110.4 110.0 114.3 118.1 122.2 123.5 Aerospace and misc. trans. eq 4.73 79.0 80.4 81.3 79.3 79.1 79.2 79.0 79.4 81.1 79.4 78.9 77.3 76.3 79.5 Instruments................................. 2.07 133.7 129.7 131.0 132.4 132.1 134.5 134.5 137.0 138.7 140.9 142.9 141.2 142.2 141.3 Ordnance, private and Govt. 3.69 85.0 86.7 87.7 86.4 84.3 84.2 83.9 81 .7 78.7 77.8 77.6 77.4 76.6 76.5 Lumber, clay, and glass................. 4.44 109.1 105.9 107.0 108.2 110.6 113.1 114.4 112.6 113.9 118.0 117.5 118.5 119.4 120.0 Lumber and products................ 1.65 109.7 108.0 110.3 112.0 114.5 115.5 116.8 115.0 116.1 121.9 121.5 119.2 120.8 Clay, glass, and stone products. 2.79 108.8 104.7 105.1 106.2 108.3 111.7 113.0 111 .2 112.6 115.7 115.3 118.2 118.6 Furniture and miscellaneous........... 2.90 121.5 119.7 120.1 121.1 123.1 124.3 124.6 122.9 124.1 124.0 129.5 129.2 128.6 131.1 Furniture and fixtures................. 1.38 109.6 109.6 107.9 109.4 109.6 110.6 110.8 111 .0 112.2 115.1 116.2 115.6 116.3 Miscellaneous manufactures. 1.52 132.3 129.0 131.1 131. 135.3 136.7 137.2 133.7 135.1 132.1 141.8 141 .6 139.9 Nondurable manufactures Textiles, apparel, and leather........ 6.90 98.0 93.2 94.9 97.4 100.2 104.0 106.0 108.4 109.7 111.3 109.4 110.0 111.1 112.4 Textile mill products.................. 2.69 109.9 103.8 106.9 110.7 115.0 121.2 123.2 125.2 126.8 126.7 122.2 125.6 125.2 Apparel products........................ 3.33 94.7 90.9 91.5 92.9 95.8 96.1 98.0 101.3 103.2 106.1 105.6 104.3 Leather and products................. 73.8 70.0 71.2 73.5 71.7 81.2 83 83.5 81.5 83.4 84.2 83.2 92.4 Paper and printing........................... 7.92 109.6 103.9 107.3 107.4 110.8 113.9 114 114.7 116.8 119.6 120.0 121.2 121.0 121.4 Paper and products................... 3.18 115.7 105.8 109.5 111.7 116.4 124.0 127.0 127.3 129.2 132.6 135.0 137.0 136.4 Printing and publishing............., 4.74 105.5 102.6 105.9 104.4 107.1 107.1 106.5 106.2 108.5 110.8 110.0 110.5 110.6 112.4 Chemicals, petroleum, and rubber 11.92 140.3 132.4 136.2 140.1 143.6 146.2 148.5 150.2 151.1 151.6 155.6 158.3 155.6 154.5 Chemicals and products............. 7.86 143.2 135.7 138.2 143.4 146.3 148.8 152.5 155.2 156.3 156.8 158.6 161 .4 159.7 160.4 Petroleum products.................... 1.80 124.5 118.5 122.4 124.6 126.7 127.1 126.5 126.8 128.7 123.6 127.7 129.5 131.6 129.7 Rubber and plastics products..., 2.26 142.7 132.7 140.1 141.6 147.8 152.0 153.1 151.5 151.2 156.0 167.5 170.8 160.9 Foods and tobacco........................... 9.48 124.5 122.4 123.5 124.8 125.2 126.0 126.3 128.0 129.4 130.3 129.6 128.6 130.0 131.5 Foods........................................... 8.81 125.9 123.7 125.1 126.3 126.7 127.4 127.3 129.1 130.7 131.5 130.7 129.5 131.1 132.8 Tobacco products....................... .67 107.3 103.8 102.2 104.8 105.7 109.3 111.9 113.7 109.9 114.1 115.8 117.4 Mining Metal, stone, and earth minerals..., 1.26 109.8 106.2 101.5 105.0 107.2 107.2 108.0 110.0 108.2 112.1 116.3 116.5 115.8 115.7 Metal mining............................... .51 121.7 114. 110.6 110.3 119.2 118.5 119.8 122.1 120.9 124.8 128.7 130.2 128.7 Stone and earth minerals........... .76 101.7 100.4 95.3 101.4 98.9 99.5 100.0 101.7 99.6 103.6 107.9 107.3 107.1 Coal, oil, and gas........................... 5.11 105.8 105.8 107.6 106.7 104.4 104.8 106.1 105.9 104.7 103.8 102.0 106.8 104.5 105.9 Coal............................................. .69 113.8 113.6 120.4 120.6 105.7 113.6 114.6 119.9 107. 109.4 115.0 139.8 119.4 122.0 Oil and gas extraction................. 4.42 104.6 104.5 105.5 104.5 104.2 103.4 104.8 103.8 104.3 102.9 100.0 101.7 102.2 103.3 Utilities Electric............................................ 3.90 164.7 163.0 163.3 164.9 «165.9 167.8 163.4 c165 .0 167.6 172.0 Gas.................................................. 1.17 117.1 Published groupings include series and subtotals not shown sepa rately. Figures for individual series and subtotals are published in the monthly Industrial Production release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 BUSINESS ACTIVITY; CONSTRUCTION o JUNE 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu Prices4 facturing 2 In Ca Market dustry pacity Nonag utiliza Con ricul Period Products tion struc tural Total Whole Total in mfg. tion em Em Pay retail Con sale Final (1967 con ploy ploy rolls sales3 sumer com Mate Manu output tracts ment— ment modity Total Inter rials factur = 100) Total i Con Equip mediate ing Total sumer ment goods 195 5 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 195 6 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 195 7 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 195 8 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 195 9 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 196 0 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 196 1 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 94.5 196 2 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 78.1 84.4 87.3 73.3 75 90.6 94.8 196 3 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 196 4 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 196 5 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 90 94.5 96.6 196 6 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 196 8 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.2 101.4 108.3 109 104.2 102.5 196 9 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 197 0 106.6 106.0 104.5 110.3 96.3 111.7 107.7 105.2 78.3 123.1 107.7 98.1 114.1 119 116.3 110.4 197 1 106. 106.4 104.7 115.7 89.4 112.6 107.4 105.2 75.0 145.4 108.1 94.2 116.7 130 121.2 113.9 197 2 115.2 113.8 111.9 123.6 95.5 121.1 117.4 114.0 78.6 165.3 111.9 97.6 131.5 142 125.3 119.8 197 3 125.6 123.4 121.3 131.7 106.7 131.1 129.3 125.2 83.0 179.5 116.8 103.2 149.2 160 133.1 134.7 197 4 124.8 123.1 121.7 128. 111 .7 128.3 127.4 124.4 78.9 169.7 119.1 102.1 157.1 171 147.7 160.1 197 5 113.8 115.7 115.5 124.0 103.6 116.3 110.6 112.2 68.7 166.0 116.9 91.4 151.0 186 161.2 174.9 1975—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 1 174.0 115.9 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 j 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. 116.6 115.1 114.7 l 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 I 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., 118.4 119.3 119.0 130.2 103.5 120.3 116.8 117.0 1 137.0 118.1 93.0 162.3 198 166.3 178.7 1976—Jan.. 119.5 120.2 119.6 130.9 103.8 122.4 118.3 118.1 I 183.0 118.7 94.0 165.9 197 166.7 179.3 Feb.1 120.8 121.4 120.7 132.0 104.8 123.5 120.0 119.9 '71.9 170.0 119.0 94.3 165.4 201 167.1 179.3 Mar. 121.7 121.4 120.7 131. 105.0 124.0 122.2 120.3 J 185.0 119.4 94.9 167.4 204 167.5 179.6 Apr.! 122.3 122.0 121.4 132.8 105.4 124.1 122.7 121.1 189.0 119.9 95.5 165.9 204 168.2 181.3 May. 123.2 122.8 122.6 133.9 106.9 123.5 123.8 122.0 120.0 95.2 170.9 201 181.8 1 Employees only: excludes personnel in the Armed Forces. Construction contracts; McGraw-Hill Informations Systems Company, 2 Production workers only. Revised back to 1973. F.W. Dodge Division, monthly index of dollar value of total construction 3 F.R. index based on Census Bureau figures. contracts, including residential, nonresidential, and heavy engineering. 4 Prices are not seasonally adjusted. Latest figure is final. Employment and payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Capacity utilization: Based on data from Federal Reserve, McGraw- Prices: Bureau of Labor Statistics data. Hill Economics Department, and Dept, of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1975 1976 Type of ownership and 1974 1975 type of construction Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. total construction contracts 1........ 93,685 90,237 9,598 9,143 9,324 9,04410,037 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408 By type of ownership; Public........................................ 32,062 31,415 2,768 2,875 3,891 3,784 3,040 2,725 2,544 1,597 1,724 1,655 1,719 2,192 2,383 61,623 58,822 6,830 6,268 5,432 5,260 6,997 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025 By type of construction: Residential building 1.............. 33,567 31,347 3,029 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003 Nonresidential building........... 33,131 c30,577 2,987 2,877 3,169 3,165 2,666 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741 Nonbuilding............................. 26,987 28,313 3,582 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664 ’rivate housing units authorized... 1,074 925 837 912 949 1,042 995 1,095 1,079 1,085 1,028 1,120 1,134 '1,134 1,102 (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
JUNE 1976 □ CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Nonresidential Period Total i Total d R en es ti i a l Total In tr d ia u l s B m u C i e l o r d c m i i n a g l s b O in u t g i h s l e d 2 r P O U i u a t t n i b t h e i d l e l s i r c Total M ta i r l y i H w ig ay h d C e v m v o a a e n n t e i l s d n o o e t n p r Other 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—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 45,077 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 45,362 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 46,848 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 46,339 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 47,705 7,750 12,634 5,771 21,550 42,018 1,661 12,497 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... 134,335 97,032 48,964 48,068 7,464 11,854 5,764 22,986 37,303 1,534 Feb.' 134,129 99,289 49,518 49,771 8,168 13,152 6,363 22,088 34,840 1,705 Mar.. 139,527 101,785 51,824 49,961 7,605 13,238 6,031 23,087 37,742 1,510 Apr.p 138,259 99,820 52,414 47,406 6,859 11,994 5,495 23,058 38,439 1,698 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 1 Median prices Units (in thousands Mobile of dollars) of Period home units 1- 2-or- 1- 2-or- 1- 2-or- ship Total family more Total family more Total family more ments family family family For sale For Sold (end of Sold sale per iod) 1966........................................ 1,165 779 386 217 461 196 21.4 22.8 1967........................................ 1,292 844 448 240 487 190 22.7 23.6 1968........................................ 1,508 899 608 1,320 859 461 318 490 218 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—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............................. 1,381 1,048 333 1,386 992 394 1,037 555 482 232 660 381 41.1 38.6 Dec.............................. 1,283 962 321 1,329 993 336 1,038 559 479 228 c641 378 42.2 38.9 1976—Jan............................... 1,236 957 279 1,213 926 287 1,041 562 479 263 570 380 41.5 39.1 Feb. »■........................... 1,547 1,295 252 1,294 945 349 1,053 582 471 287 677 386 42.8 39.3 Mar............................. 1,433 1,119 314 1,348 1,007 341 1,058 594 464 244 555 391 43.7 39.6 Apr.**........................... 1,372 1,067 305 246 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 □ JUNE 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a t u . u S l l t a . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f a S o o b . r A t c o a e r . l ) Total Total E In m c n u p o l l t n o u 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 r e S a r m . e A t c e p n e . 2 l t ) n o y t; agriculture industries 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 197 3 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 197 4 150,827 57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 197 5 153,449 58,655 94,793 92,613 84,783 81,403 3,380 7,830 8.5 1975—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 May 155,711 59,988 96,699 94,557 87,697 84,368 3,329 6,860 7.3 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac Mining c C o o n t n i s o t t r n r a u c c t Tr ti a p o n u n s b p l a o i n c r d ta Trade Finance Service G m ov e e n r t n utilities 1970.......................................................... 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 1971.......................................................... 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 1972.......................................................... 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—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.............................................. 78,630 18,877 770 3,366 4,498 17,386 4,276 14,422 15,035 Apr.**............................................ 78,942 18,969 773 3,392 4,512 17,444 4,290 14,488 15,074 May2*........................................... 78,999 18,928 771 3,402 4,497 17,457 4,285 14,559 15,100 NOT SEASONALLY ADJUSTED 1975—May.............................................. 76,689 18,071 740 3,439 4,487 16,819 4,208 13,986 14,939 June.............................................. 77,183 18,255 756 3,555 4,523 16,971 4,248 14,079 14,796 July.............................................. 76,439 18,007 758 3,605 4,504 16,936 4,266 14,144 14,219 Aug............................................... 76,900 18,450 763 3,688 4,493 16,959 4,273 14,162 14,112 Sept.............................................. 77,614 18,694 758 3,659 4,503 17,084 4,243 14,113 14,560 Oct................................................ 78,193 18,687 763 3,620 4,503 17,136 4,238 14,185 15,061 Nov............................................... 78,339 18,635 763 3,522 4,509 17,313 4,235 14,174 15,188 Dec............................................... 78,527 18,584 763 3,338 4,477 17,737 4,243 14,158 15,227 1976—Jan................................................ 77,091 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.............................................. 77,906 18,679 759 3,103 4,462 17,028 4,246 14,307 15,322 Apr^............................................ 78,666 18,808 767 3,263 4,476 17,295 4,273 14,488 15,296 MayP............................................ 79,192 18,837 773 3,402 4,493 17,423 4,285 14,661 15,318 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
JUNE 1976 □ PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent o H w s o h n m i e p e r- - F c a o o u n i a e d l l l tr e G a i l c n e a i c d s t y o n F i p a n i n u e s g r h d r s a A up p a k p n e a d e re p l T p t o r i a o r n t n a s Total M c ic a e a r d e l s c P o a e n r r a e l re a m c n r g e d a g O s a o e t n o r h v d d e s r tion tion ices 1929 ........................ 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960.......................... 88.7 88.0 90.2 91.7 * 86.3' 89.2 98.6 *93.’8* 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965.......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 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—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................ 164.6 179.0 169.8 139.3 184.8 243.3 174.2 160.9 144.6 156.1 156.3 173.5 152.9 146.6 148.5 165.6 179.8 171.3 139.9 186.8 246.5 176.8 161.6 145.5 157.4 156.5 173.3 153.6 147.0 148.9 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 Apr............... 168.2 179.2 174.9 143.2 188.9 246.6 184.4 167.4 145.7 161.3 161.4 181.6 158.3 149.5 152.5 Note.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro Period m c t o i o e m d s i p F u r a c o r t d m s c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , R b et u e c r b . , L b e u e tc m r . , P e a t p c e . r, M e a t l e c s, . t e c m M a q e h n r e u i y a d n n i p t F t e u u t r r c e n . , i N t e m m a r l o a i l e n l n i s c T e p m t q r o i a e o 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 10513 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—May............ 173.2 184.5 179.0 170.3 135.2 147.7 238.8 182.1 148.9 183.0 169.8 185.1 160.4 138.6 173.1 139.9 147.5 June............ 173.7 186.2 179.7 170.7 135.9 148.7 243.0 181.2 148.6 181.0 169.8 184.5 161.0 139.0 173.3 140.1 147.5 July............. 175.7 193.7 184.6 171.2 136.8 149.3 246.6 181.4 150.1 179.6 170.0 183.4 161.7 139.2 174.7 140.1 147.7 Aug............. 176.7 193.2 186.3 172.2 137.6 149.3 252.4 182.1 150.0 179.7 170.0 184.3 162.2 139.8 175.8 140.5 147.8 Sept............. 177.7 197.1 186.1 173.1 138.4 151.3 254.9 182.2 150.8 179.9 170.3 185.5 163.1 140.1 176.1 141.1 148.2 Oct.............. 178.9 197.3 186.2 174.7 141.3 152.4 256.5 182.3 151.5 179.1 170.9 187.2 164.1 141.1 177.1 146.6 147.6 Nov............. 178.2 191.7 182.6 175.4 143.2 154.4 257.0 182.9 151.8 178.3 171.3 187.0 165.3 141.5 177.7 147.2 148.6 Dec............. 178.7 193.8 181.0 176.1 144.0 154.6 258.0 183.4 151.9 183.1 173.1 187.1 165.8 142.0 178.0 147.5 151.1 1976—Jan.............. 179.3 192.8 179.4 177.3 145.1 157.5 257.3 184.2 152.4 190.5 174.8 187.7 167.0 143.1 181.1 148.7 151.8 Feb.............. 179.3 191.0 176.4 178.0 146.3 159.9 255.7 184.9 154.2 196.0 175.8 189.2 167.7 143.4 181.3 148.8 152.1 Mar............. 179.6 187.2 175.8 178.9 146.7 162.0 255.7 185.6 155.5 202.3 176.9 190.6 168.2 143.9 182.5 149.1 152.6 Apr............. 181.3 192.9 178.0 180.0 147.4 165.4 256.9 187.1 156.7 203.3 178.5 192.9 168.9 144.4 185.2 149.2 152.4 May............ 181.8 192.6 179.9 180.4 147.0 169.6 257.2 186.9 157.1 202.3 179.2 194.0 169.4 144.8 185.6 149.0 152.7 i Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A54 NATIONAL PRODUCT AND INCOME □ JUNE 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 I II III IV I Gross national product...................................................... 286.2 982.41,171.1 1,306.31,406.91,498.9 1,433.61,460.61,528.5 1,572.91,619.2 279.4 978.61,161.71,288.8 1,397.21,513.5 1,458.4 1,490.2 1,530.61,574.9 1,603.8 Personal consumption expenditures.................................. 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 911.4 1,001.01,029.6 Durable goods............................................................... 30.8 84.9 111.2 122.9 121.9 128.1 118.9 123.8 131.8 137.6 145.9 98.2 264.7 299.3 334.4 375.7 409.8 394.1 404.8 416.4 423.7 430.8 63.0 269.1 322.4 351.3 388.3 426.0 413.4 421.6 429.2 439.7 452.9 Gross private domestic investment.................................... 53.8 140.8 188.3 220.5 212.2 182.6 168.7 161.4 194.9 205.4 232.2 47.0 137.0 178.8 203.0 202.5 197.3 193.5 191.1 197.1 207.4 216.7 27.1 100.5 116.8 136.5 147.9 148.5 149.3 146.1 146.7 151.9 158.1 Structures............................................................... 9.3 37.7 42.5 49.0 54.4 52.7 54.9 51.1 51.2 53.6 55.5 Producers’ durable equipment............................. 17.8 62.8 74.3 87.5 93.5 95.8 94.4 95.0 95.6 98.3 102.6 Residential structures................................................ 19.9 36.6 62.0 66.5 54.6 48.7 44.2 45.0 50.4 55.4 58.3 Nonfarm................................................................. 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 15.5 Nonfarm..................................................................... 6.0 3.7 8.8 14.1 11.6 -16.5 -23.3 -29.6 -5.7 -7.5 11.3 Net exports of goods and services.................................... 1.9 3.9 -3.3 7.4 7.7 21.3 17.3 24.2 22.1 21.7 8.2 Exports........................................................................... 13.9 62.5 72.7 101.5 144.2 147.8 148.2 140.7 148.5 153.8 153.1 Imports........................................................................... 12.0 58.5 75.9 94.2 136.5 126.5 130.9 116.4 126.4 132.1 145.0 Government purchases of goods and services................... 38.5 218.9 253.1 269.9 301.1 331.2 321.2 324.7 334.1 344.8 349.2 Federal........................................................................... 18.7 95.6 102.1 102.0 111.7 123.2 119.4 119.2 124.2 129.9 131.1 National defense........................................................ 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 State local....................................................................... 19.8 123.2 151.0 168.0 189.4 208.0 201.9 205.5 209.9 214.8 218.1 Gross national product in 1972 dollars............................. 533.51,075.31,171.1 1,233.41,210.71,186.1 1,158.61,168.1 1,201.51,216.21,241.2 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 I 236.2 798.4 951.91,067.31,141.1 1,208.1 1,155.21,180.81,232.51,262.61,301.3 Compensation of employees.............................................. 154.8 609.2 715.1 797.7 873.0 921.4 897.1 905.4 928.2 955.1 982.6 147.0 546.5 633.8 700.9 763.1 801.6 781.0 787.6 807.3 830.7 851.5 124.4 430.5 496.2 552.3 603.0 627.3 611.7 615.0 631.9 650.5 668.8 5.3 20.7 22.0 22.1 22.3 23.0 22.9 22.8 22.8 23.6 23.6 Government civilian.................................................. 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 4.2 30.7 39.4 49.3 55.5 58.5 57.1 57.5 58.9 60.6 65.0 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 capital consumption adjustments................................... 38.4 65.1 76.1 91.7 85.1 83.3 79.6 78.6 88.0 87.1 85.0 Business and professional......................................... 24.9 51.2 58.1 59.3 59.5 58.7 58.6 58.5 58.7 58.9 59.7 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 of 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 83.4 101.6 119.6 119.3 129.4 Profits before tax........................................................... 42.6 71.5 96.2 117.0 132.1 117.1 97.1 108.2 129.5 132.4 140.8 Profits tax liability.................................................... 17.9 34.5 41.5 48.2 52.6 45.7 37.5 41.6 50.1 52.5 56.5 Profits after tax.......................................................... 24.7 37.0 54.6 68.8 79.5 71.4 59.6 66.6 78.8 79.9 84.3 Dividends............................................................... 8.8 22.9 24.6 27.8 31.1 32.8 32.1 32.6 33.5 33.1 33.3 15.9 14.1 30.0 40.9 48.4 38.6 27.5 34.0 45.3 46.8 51.0 Inventory valuation adjustment................................... -5.0 -5.1 -6.6 -18.4 -38.5 -10.8 -13.7 -6.6 -9.9 -13.1 -11.4 Capital consumption adjustment................................. -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
JUNE 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 II III IV Gross national product..................................................... 286.2 982.41,171.1 1,306.31,406.91,498.91,433.6 1,460.61,528.51,572.9 1,619.2 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 94.0 111.0 120.2 127.3 137.3 131.6 135.2 140.0 142.2 142.8 Business transfer payments................................... .8 4.0 4.7 5.2 5 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 5.3 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 1,155.21,180.81,232.51,262.61,301.3 Less: Corporate profits with inventory valuation and capital consumption adjustments...................... 33.7 67.9 92.1 100.2 91.3 100.7 78.9 96.6 113.1 112.7 121.8 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 99.4 113.5 134.5 168.7 157.7 169.4 172.4 175.2 181.5 Personal interest income.............................. 8.9 64.3 74.6 88.4 106.5 120.5 116.0 117.6 121.2 127.4 131.9 Dividends...................................................... 22.9 24.6 27.8 31.1 32.8 32.1 32.6 33.5 33.1 33.3 Business transfer payments.......................... 4.0 4.7 5.2 5.8 6.3 6.2 6.3 6.4 6.5 6.6 Equals: Personal income............................ 226.1 801.3 942.5 ,054.3 ,154.7 ,245.9 ,203.6 ,223.8 ,261.7 ,294.5 ,325.2 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.......... 205.5 685.9 801.3 903.1 983.6 ,076.7 ,024.0 ,081.7 ,087.1 ,114.0 ,140.7 Less: Personal outlays..................................................... 194.7 635.4 751.9 830.4 909.5 987.8 950.4 974.2 ,001.3 ,025.4 ,054.5 Personal consumption expenditures................. 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 977.4 ,001.0 ,029.6 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 23.8 Personal transfer payments 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 86.2 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 0.3 Note.—Dept, of Commerce estimates. Quarterly data seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1975 1976 Item 1974 1975 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p Total personal income. 1154.71245.91209.01217.21245.21244.01262.41278.71287.41295.91300.21313.61325.91336.01347.6 Wage and salary disbursements........... 763.6 801.6 782.7 787.4 792.7 797.4 815.6 824.1 831.2 836.8 846.0 851.6 856.8 862.8 Commodity-producing industries.. 273.7 273.6 265.8 267.0 268.8 270.9 275.6 279.5 281.7 283.2 286.9 291.2 293.0 295.4 297.8 Manufacturing only.................... 211.2 211.2 204.9 205.6 207.2 208 213.2 216.6 218.7 219.7 223.3 226.9 228.4 230.3 232.3 Distributive industries..................... 184.3 195.1 190.9 191.7 192.9 193.9 197.7 198.2 200.2 202.4 202.9 205.8 207.2 208.0 209.9 Service industries............................. 145.0 158.6 154.5 156.1 157.4 158.2 160.3 161.5 163.1 165.3 165.7 167.1 168.8 170.0 171.2 Government..................................... 160.6 174.3 171.5 172.6 173.6 174.4 175.2 176.4 179.0 180.3 181.2 181.9 182.6 183.3 183.9 Other labor income............................. 54.5 61.3 59.8 60.3 60.8 61.4 62.0 62.6 63.2 63.8 64.4 65.2 66.1 65.1 65.5 Proprietors’ income with inventory valuation and capital consumption adjustments....................................... 85.1 83.3 77.0 78.7 80.3 84.5 88.0 91.5 89.4 87.1 84.7 84.7 85.0 84.9 87.0 Business and professional................ 59.5 58.7 58.5 58.6 58.6 58.7 58.7 58.8 58.9 58.8 58.9 59.1 59.7 60.3 60.7 Farm................................................. 25.6 24.6 18.5 20.1 21.7 25.8 29.3 32.7 30.5 28.3 25.8 25.6 25.3 25.0 26.3 Rental income of persons with capital consumption adjustment................. 21.0 21.1 20.7 20.5 20.2 20.5 21.0 21.3 21.8 22.0 22.2 22.5 22.7 22.9 23.1 Dividends. 31.1 32.8 32.4 32.6 32.9 33.2 33.5 33.9 33.8 33.8 31.7 33.4 33.3 33.2 33.8 Personal interest income. 106.5 120.5 116.6 117.5 118.6 119.7 121.2 122.9 125.1 127.9 129.0 130.4 131.8 133.6 135.1 Transfer payments.......... 140.4 175.0 168.6 169.3 189.0 176.8 178.1 181.3 180.6 181.4 182.9 184.7 188.9 190.8 192.0 Less: Personal contributions for social insurance................................... 47.4 49.8 48.9 49.1 49.3 49.5 50.0 50.4 50.7 51.2 51.6 53.3 53.4 53.6 53.9 Nonagricultural income. 1119.11210.21179.71186.21212.51207.21222.11234.81245.61256.31262.91276.31288.91299.21309.5 Agricultural income 35.6 35.7 29.3 31.0 32.7 36.8 40.3 43.9 41.8 39.7 37.3 37.3 37.1 36.8 38.1 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 □ JUNE 1976 SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 11975 *■ Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975r HI H2 Credit market funds raised by nonfinancial sectors 1 67.9 82.4 96.0 91.8 98.2 147.4 169.4 187.4 180.1 204.6 186.7 222.2 1 2 66.9 80.0 96.0 87.9 92.4 135.9 158.9 180.1 176.2 194.6 176.2 212.8 2 3 3.6 13.0 13.4 -3.7 12.8 25.5 17.3 9.7 12.0 85.2 84.1 86.3 3 4 2.3 8.9 10.4 -1.3 12.9 26.0 13.9 7.7 12.0 85.8 85.4 86.4 4r 5 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 85.4 121.9 152.1 177.7 168.1 119.4 102.6 135.9 6 7 1.0 2.4 * 3.9 5.8 11.5 10.5 7.2 3.8 9.9 10.5 9.4 7 8 63.3 67.0 82.6 91.6 79.7 110.4 141.6 170.4 164.2 109.4 92.1 126.5 8 9 Private domestic nonfinancial sectors........ 62.7 6.45 79.7 91.8 82.7 117.3 147.8 170.1 152.7 106.3 93.0 119.4 9 10 1.3 2.4 -.2 3.4 5.7 11.4 10.9 7.4 4.1 9.9 10.3 9.5 10 11 61.5 63.0 79.9 88.4 77.0 105.8 136.9 162.7 148.6 96.4 82.7 109.9 11 12 38.2 44.5 49.5 49.6 56.7 83.2 93.8 96.1 92.9 97.8 101.7 93.8 12 13 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 15.4 17.1 13.8 13 14 10.2 14.7 12.9 12.0 19.8 18.8 12.2 9.2 19.7 27.2 35.3 19.1 14 15 11.7 11.5 15.1 15.7 12.8 26.1 39.6 43.3 31.7 36.1 31.2 41.0 15 16 3.1 3.6 3.4 4.7 5.8 8.8 10.3 8.4 7.8 2.4 2.9 1.9 16 17 5.7 4.7 6.4 5.3 5.3 10.0 14.8 17.0 11.5 11.0 9.4 12.6 17 18 1.8 2.3 2.2 1.9 1.8 2.0 2.6 4.4 4.9 5.6 5.8 5.4 18 19 23.3 18.5 30.4 38.8 20.3 22.6 43.0 66.6 55.6 -1.3 -19.1 16.1 19 20 6.4 4.5 10.0 10.4 6.0 11.2 19.2 22.9 9.6 5.3 -1.5 12.0 20 21 10.9 9.8 13.6 15.5 6.7 7.8 18.9 35.8 27.3 -11.3 -20.2 -2.5 21 22 1.1 1.7 1.8 3.0 3.0 -1.2 -.5 -.4 6.6 -2.0 -1.5 -2.5 22 23 Other............................................................ 5.0 2.6 5.0 9.9 4.6 4.8 5.5 8.3 12.1 6.7 4.2 9.2 23 24 By borrowing sector........................................... 62.7 65.4 79.7 91.8 82.7 117.3 147.8 170.1 152.7 106.3 93.0 119.4 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 11.6 25 26 Households...................................................... 22.7 19.3 30.0 31.7 23.4 39.8 63.1 72.8 44.0 45.2 36.2 54.1 26 27 Farm................................................................ 3.1 3.6 2.8 3.2 3.2 4.1 4.9 8.6 7.8 9.2 8.2 10.2 27 28 Nonfarm noncorporate................................... 5.4 5.0 5.6 7.4 5.3 8.7 10.4 9.3 7.2 2.9 .2 5.4 28 29 Corporate........................................................ 25.3 29.6 31.6 38.9 39.5 46.8 55.3 67.2 77.1 35.8 33.6 38.1 29 30 1.5 4.0 2.8 3.7 2.7 4.6 4.3 7.5 15.4 13.0 9.6 16.4 30 31 Corporate equities.............................................. -.3 .1 .2 .5 .1 * -.4 -.2 -.3 * .1 -.1 31 32 1.8 4.0 2.7 3.2 2.7 4.6 4.7 7.7 15.7 13.0 9.5 16.6 32 33 Bonds............................................................... .1 1.2 1.1 1.0 .9 .9 1.0 1.0 2.2 6.3 5.9 6.7 33 34 Bank loans n.e.c.............................................. -.2 -.3 -.5 -.2 -.3 1.6 2.9 2.8 4.7 4.0 1.4 6.6 34 35 Open market paper......................................... -.1 .5 -.2 .3 .8 .3 -1.0 2.2 7.1 -.1 -1.2 1.0 35 36 U.S. Government loans.................................. 1 .3 2.6 2.2 2.1 1.3 1.8 1.8 1.7 1.7 2.8 3.4 2.3 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 2.7 3.1 37 Totals net of changes in U.S. Govt, cash balances:. 38 Total funds raised...................................................... 68.3 81.3 97.1 91.4 95.5 144.2 169.7 189.0 184.7 201.7 184.0 219.1 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 81.4 83.2 39 Credit market funds raised by financial sectors 1 Total funds raised by financial sectors....................... 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 12.1 4.9 19.3 1 2 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 11.0 9.1 13.0 2 3 U.S. Government securities............................... 5.1 -.6 3.2 9.1 8.2 3.8 6.2 19.6 21.4 10.2 8.0 12.3 3 4 Loans from U.S. Government........................... -.2 -.1 .2 -.3 .7 .9 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 1.1 -4.2 6.3 5 6 Corporate equities.............................................. 3.7 3.0 6.4 6.1 4.6 3.3 2.4 .8 1.7 1.8 2.1 1.5 6 7 Debt instruments.................................................. 3.2 -.4 8.5 18.8 — .3 9.3 20.3 31.6 14.2 -.7 -6.3 4.8 7 8 Corporate bonds............................................. .9 1.3 1.1 1.5 3.1 5.1 7.0 2.3 1.4 3.1 3.0 3.3 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 -5.3 -7.9 -2.7 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 3.1 4.6 1.5 11 12 Loans from FHLB’s....................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -8.1 .2 12 13 Total funds raised, by sector...................................... 11.7 2.0 18.3 33.7 12.6 16.5 28.9 52.0 38.0 12.1 4.9 19.3 13 14 Sponsored credit agencies...................................... 4.8 -.6 3.5 8.8 8.2 3.8 6.2 19.6 22.1 11.0 9.1 13.0 14 15 Private financial sectors......................................... 6.9 2.6 14.9 24.9 4.3 12.7 22.8 32.4 15.9 1.1 -4.2 6.3 15 16 Commercial banks.............................................. -.1 .1 1.2 1.4 -3.1 2.5 4.0 4.5 -1.9 3.3 4.6 2.1 16 17 Bank affiliates...................................................... 4.2 -1.9 -.4 .7 2.2 2.4 .3 .9 — .3 17 18 Foreign banking agencies................................... .1 * .1 .2 .1 1.6 .8 5.1 2.9 -.3 -.9 .2 18 19 Savings and loan associations........................... .1 -1.7 1.1 4.1 1.8 -.1 2.0 6.0 6.3 -2.1 -8.0 3.8 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 -.9 -2.5 .8 21 22 REIT’s................................................................. .7 1.3 2.7 3.0 6.1 6.3 1.0 — 1.6 — 1 8 -1.4 22 23 Open end investment companies....................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 1.6 2.7 .5 23 Total credit market funds raised, all sectors, by type 1 79.6 84.4 114.3 125.5 110.8 163.9 198.3 239.4 218.1 216.6 191.6 241.5 1 2 Investment company shares................................... 3.7 3.0 5.8 4.8 2.6 1.1 -.7 -1.6 1.0 1.6 2.7 .5 2 3 Other corporate equities........................................ 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 10.1 9.8 10.4 3 4 Debt instruments..................................................... 74.9 79.0 107.9 115.5 100.4 149.1 185.4 231.3 212.5 204.9 179.0 230.6 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 92.0 98.9 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 13.8 6 7 Corporate and foreign bonds............................ 11.8 17.2 15.0 14.5 23.8 24.8 20.2 12.5 23.3 36.7 44.2 29.1 7 8 Mortgages............................................................ 21.3 23.0 27.4 27.8 26.4 48.9 68.8 71.9 54.5 57.3 51.4 63.2 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 12.0 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 -12.6 -26.7 1.3 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 .9 1.9 * 11 12 Other loans.......................................................... 6.9 2.5 8.3 15.8 7.3 4.0 7.4 17.2 21.1 6.4 .6 12.2 12 Note.—Full statements for sectors and transaction types quarterly, and Flow of Funds Section, Division of Research and Statistics, Board of annually for flows and for amounts outstanding, may be obtained from Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ FLOW OF FUNDS A57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 ' Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974 19751 HI H2 1 Total funds advanced in credit markets to non financial sectors ................................................. 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 176.2 194.6 176.2 212.8 By public agencies and foreign 2 Total net advances.................................................... 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 49.2 39.2 41.6 36.8 2 3 U.S. Government securities................................. 3.4 6.8 3.4 .7 15.9 33. 8.4 11.0 8.6 18.5 28.3 8.8 3 4 Residential mortgages.......................................... 2. 2.1 2.8 4.6 5.7 5.7 5.2 7.6 13.8 16.1 15.1 17.2 4 5 FHLB advances to S&L’s.................................... .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -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 8.5 6.3 10.7 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 13.3 12.7 13.9 7 8 Sponsored credit agencies.................................... 5.1 -.1 3.2 8.9 10.0 3.2 7.0 20.3 24.1 12.6 11.1 14.1 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 4.7 10.8 -1.4 10 11 Agency borrowing not included in line 1............... 4.8 -.6 3.5 8 8.2 3. 6.2 19.6 22.1 11.0 9.1 13.0 11 Private domestic funds advanced 12 Total net advances.................................................... 59.8 68.1 87.2 81.1 72.6 98.1 146.7 166.5 149.1 166.4 143.7 189.0 13 U.S. Government securities................................. 5.4 5.7 13.3 4.8 5.2 -4.4 15.2 18.4 24.9 76.9 63.7 90.2 14 State and local obligations................................... 5.6 7. 9.5 9.9 11.2 17.6 14.4 13.7 17.4 15.4 17.1 13.8 15 Corporate and foreign bonds............................... 10.3 16.0 13. 12.5 20.0 19.5 13.2 10.1 20.6 33.1 41.1 25.1 16 Residential mortgages.......................................... 12.0 13.0 15.5 15.7 12. 29.1 44.6 44.1 25.6 22.3 19.1 25.5 17 Other mortgages and loans................................. 27.4 23.1 35.9 42.2 24.6 33.7 59.5 87.4 67.4 14.8 -5.3 34.7 18 Less: FHLB advances.......................................... .9 -2.5 .9 4.0 1.3 -2.7 7.2 6.7 -4.0 -8.1 .2 Private financial intermediation 19 Credit market funds advanced by private financial institutions.......................................................... 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158. 131.5 123.0 115.0 130.8 19 20 Commercial banks................................................ 17.5 35.9 38.7 18.2 35.1 50.6 70.5 86.6 64.6 27.3 16.3 38.2 20 21 Savings institutions............................................... 7. 15.0 15.6 14.5 16.9 41.4 49.3 35.1 26.9 56.0 58.8 53.2 21 22 Insurance and pension funds............................... 15.5 12.9 14.0 12.7 17.3 13.3 17.7 22.1 34.3 40.1 40.0 40.2 22 23 Other finance......................................................... 4.5 -.3 7.0 9.9 5.7 5.3 15.8 15.0 5.7 -.4 -.2 -.8 23 24 Sources of funds........................................................ 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.5 123.0 115.0 130.8 24 25 Private domestic deposits..................................... 22.5 50.0 45.9 2.6 63.2 90.3 97.5 84.9 76.5 96.0 103.6 88.5 25 26 Credit market borrowing...................................... 3.2 -.4 8.5 18.8 -.3 9.3 20.3 31.6 14.2 -.7 -6.3 4.8 26 27 Other sources.......................................................... 19.8 13.9 21.0 34.0 12.0 11.0 35.5 42.4 40. 27.7 17.7 37.5 27 28 Foreign funds...................................................... 3.7 2.3 2.6 9.3 -8.5 -3.2 5.2 6.5 13.6 -.4 -6.3 5.6 28 29 Treasury balances............................................... -.5 .2 -.2 2.9 2.2 .7 -1.0 -5.1 -1.7 -2.3 -1.1 29 30 Insurance and pension reserves........................ 13.6 12.0 11.4 10.J 13.1 9.1 13.1 16.7 27.9 27.4 27.6 27.2 30 31 Other, net............................................................ 3.0 -.6 7.2 13 J 4.4 2.9 16.5 20.2 4.4 2.4 -1.3 5.8 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 42.7 22.5 63.0 32 33 U.S. Government securities.................................. 8.4 -1.4 8.1 17.0 -9.0 -14.0 1.6 18.8 18.1 21.2 -4.8 47.1 33 34 State and local obligations.................................... 2.6 -2.5 -.2 8.7 -1.2 .6 2.1 4.4 10.8 8.3 10.6 5.9 34 35 Corporate and foreign bonds................................ 2.0 4.6 4.7 6.6 10.7 9.3 5.2 1.1 -1.7 9.0 11.5 6.5 35 36 Commercial paper.................................................. 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 1.6 .4 2.1 -1.4 36 37 Other....................................................................... 2.3 1.7 2.1 2.0 1.4 1.5 3.8 2.9 3.8 2.9 4.8 37 38 Deposits and currency............................................... 24.4 52.1 48.3 5.4 66.6 93.7 101.9 88.8 82.8 102.2 110.9 93.5 38 39 Time and saving accounts..................................... 20.3 39.3 33.9 -2.3 56.1 81.0 85.2 76.3 71.9 88.7 91.1 86.2 39 40 Large negotiable CD’s....................................... -.2 4.3 3.5 -13.7 15.0 7.7 8.7 18.5 23.6 -9.7 -22.3 2.9 40 41 Other at commercial banks............................... 13.3 18.3 17.5 3.4 24.2 32.9 30.6 29.5 26.6 39.0 44.5 33.4 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 13.6 19.8 7.3 43 44 Demand deposits................................................ 2.1 10.6 12.1 4.8 7.1 9.3 12.3 8.6 4.5 7.4 12.4 2.3 44 45 Currency.............................................................. 2.0 2.1 2.4 2.8 3.5 3.4 4.4 3.9 6.3 6.2 7.3 5.1 45 46 Total of credit market instr., deposits, and currency. 42.0 56.3 68.7 49.9 64.1 90.5 115.7 128.1 114.5 144.9 133.3 156.5 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 20.1 23.6 17.3 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 73.9 80.0 69.2 48 49 Total foreign funds................................................ 2.1 4.3 2. 9.1 1.8 23.2 13.6 7.2 25.1 4.4 4.5 4.2 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 11.7 12.5 10.9 1 2 Mutual fund shares................................................ 3.7 3.0 5.8 4.8 2.6 1.1 — .7 -1.6 1.0 1.6 2.7 .5 2 3 Other equities............................. ..................... 1.1 2.5 .6 5.2 7.7 13.6 13.6 9.6 4.6 10.1 9.8 10.4 3 4 Acquisitions by financial institutions.................. 6.0 9.1 10.8 12.2 11.4 19.3 16.0 13.4 6.1 8.4 10.4 6.5 4 5 Other net purchases -1.2 -3.6 -4.4 -2.2 -1.0 -4.5 -3.1 -5.4 -.5 3.3 2.2 4.4 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 □ JUNE 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 197 4 1975 IV III IVp 1 Merchandise trade balance 1. 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 Other services, net 2.............................................. 3,222 3,830 4,211 1,049 1,092 1,041 1,120 959 11 Balance on goods and services - 4,177 3,825 16,500 989 2,873 4,936 4,473 4,218 Not seasonally adjusted... 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 Not seasonally adjusted........................... 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 Balance on current account... 3354-3,357 11,916 -99 1,698 3,753 3,446 3,017 Not seasonally adjusted.. 1,289 3,( 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 -717 -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 Foreign securities................................................................ -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 Errors and omissions, net................................................ -2,436 4,698 4,556 1,236 2,485 446 936 690 Net liquidity balance............... -7,651 -18,940 3,138 -7,598 3,457 462 439 -1,223 Not seasonally adjusted.. -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 Liquid claims.................................................... -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 Liquid liabilities—............................................. 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 1 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 ported by U.S. Govt............................................................... -475 655 -9 215 -6 -1 -1 -1 46 U.S. official reserve assets, net.................................................. 209 -1,434 -607 137 -325 -29 -342 89 47 Gold..................................................................................... 48 SDR’s................................................................................. 9 -172 -66 -20 -4 -16 -25 -21 49 Convertible currencies........................................................ 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 Tra li n n s e f s e 2 rs , 4 u , n a d n e d r 1 m 4) il .. i . t . a .. r . y .. ... g .. r . a .. n .. t . ... p .. r . o .. g .. r .. a .. m ... s . ... ( . e .. x .. c .. l . u .. d . e . d .. .. f .. r . o .. m .... 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 Official reserve transactions, N.S.A.................................... -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
JUNE 1976 □ FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1973 1974 1975 r 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 9,607 -103 -117 + 1,219 -651 Apr... 5,494 8,108 8,648 9,394 5,360 8,025 7,959 9,596 + 133 +83 +689 -202 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 l 2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n l n e p R o I e M s s i i n e t F i r o v n e SDR’s 3 E m n o d n t o h f Total Tot G al o 2 ld s T to re c a k sury v c fo 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 s M s i i n e t r i F o 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 May .... 16,280 11,620 11,620 4 2,218 2,438 1963.. 16,843 15,596 15,513 212 1,035 June.... 16,242 11,620 11,620 25 2,179 2,418 1964.. 16,672 15,471 15,388 432 769 July___ 16,084 11,618 11,618 2 2,135 2,329 16,117 11,599 11,599 28 2,169 2,321 1965.. 15,450 13,806 13,733 781 863 16,291 11,599 11,599 247 2,144 2,301 1966.. 14.882 13,235 13,159 1,321 326 16,569 11,599 11,599 413 2,192 2,365 1967.. 14,830 12,065 11,982 2,345 420 16,592 11,599 11,599 423 2,234 2,336 1968.. 15,710 10,892 10.367 3,528 1,290 16,226 11,599 11,599 80 2,212 2,335 1969.. 416,964 11,859 10.367 42,781 2,324 1976— 1970.. 14,487 11,072 10,732 629 1,935 851 16,622 11,599 11,599 333 2,314 2,376 1971.. 512,167 10,206 10,132 5 276 585 1,100 Feb 16,661 11,599 11,599 296 2,390 2,376 19726. 13,151 10,487 10,410 241 465 1,958 16,941 11,599 11,559 571 2,420 2,351 19737. 14,378 11.652 11,567 552 2,166 17,438 11,599 11,599 936 2,578 2,325 1974.. 15.883 11.652 11,652 1,852 2,374 May. ... 817,958 11,598 11,598 938 83,113 82,309 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 May amounted to $2,435 million, reserve position in IMF, $3,246 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $18,217. revalued to reflect market exchange rates as of Dec. 31, 1971. Note.—See Table 20 for gold held under earmark at F.R. Banks for 6 Total reserve assets include an increase of $1,016 million resulting foreign and international accounts. Gold under earmark is not included from change in par value of the U.S. dollar on May 8, 1972; of which, in the gold stock of the United States. NOTES TO TABLE 1 ON OPPOSITE PAGE: 1 Adjusted to balance of payments basis; among other adjustments, 4 Includes under U.S. Government grants $2 billion equivalent, rep excludes military transactions and includes imports into the U.S. Virgin resenting the refinancing of economic assistance loans to India; a cor Islands. responding reduction of credits is shown in line 16. 2 Fees and royalities from U.S. direct investments abroad or from 5 Includes some short-term U.S. Govt, assets. foreign direct investments in the United States are excluded from invest 6 Includes some transactions of foreign official agencies. ment income and included in “Other services.” 7 Includes changes in long-term liabilities reported by banks in the 3 Differs from the definition of “net exports of goods and services” in United States and in investments by foreign official agencies in debt the national income and product (GNP) account. The GNP definition securities of U.S. Federally sponsored agencies and U.S. corporations. excludes special military sales to Israel from exports and excludes U.S. Govt, interest payments from imports. Note.—Data are from U.S. Department of Commerce, Bureau of Eco nomic Analysis. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A60 GOLD RESERVES □ JUNE 1976 4. GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) Esti Intl. Esti China, End of mated Mone United mated Algeria Argen Aus Aus Bel Canada Rep. of Den Egypt period total tary States rest of tina tralia tria gium (Taiwan) mark world1 Fund world 1970.......................... 41,275 4,339 11,072 25,865 191 140 239 707 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—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 6,478 11,618 231 169 312 882 1,781 927 97 76 103 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Sept............... 49,750 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 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 11,599 231 169 312 882 1,781 927 97 76 49,470 6,478 11,599 31,395 231 312 882 1,781 916 94 76 6,478 11,599 231 312 882 1,781 916 94 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—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 Nov............... 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 3,483 891 169 389 103 152 2,294 Feb................ 4,262 4,966 153 293 158 173 3,483 891 176 103 2,294 Mar............... 4,262 4,966 153 293 158 173 3,483 891 176 103 2,294 Apr.2*............ 4,262 4,966 3,483 891 183 103 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 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 99 151 135 472 205 Mar.............. 67 129 3 543 602 244 3,513 99 151 472 206 Apr.p....... 129 539 244 3,513 99 151 472 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
JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A61 5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabili liabili- foreigners ties to End IMF Liquid mone of 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 i 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 J47,009 566 23,786 19,333 306 3,452 695 17,137 4,676 4,029 647 844 1970—Dec. . 146,960 566 23,775 19,333 295 3,452 695 17,169 4,604 4,039 565 846 /67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 1971—Dec. ii 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 1972—Dec... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec.'. 92,490 66,861 1243,923 5,701 1215,564 1,673 17,694 5,932 5,502 430 2,003 1974—Dec. 9. J \1 1 1 1 9 9 , , 1 2 5 4 2 0 7 7 6 6 , , 8 80 0 1 8 5 5 3 3 , , 0 0 6 5 4 7 5 5 , , 0 0 5 5 9 9 1 1 6 6 , , 3 3 3 3 9 9 2 2 , , 3 34 46 6 3 3 0 0 , , 0 3 7 1 9 4 8 8 , , 9 8 4 0 3 3 8 8 , , 4 3 4 0 5 5 4 4 9 9 8 8 3 3 , , 3 3 2 2 2 2 1975—Apr... 121.096 79,292 53,531 5,941 16,507 3,313 28,799 8,843 8,188 655 4,162 May.. 122,357 80,007 52,408 6,064 18,067 3,468 28,913 9,123 8,500 623 4,314 June.. 122.097 80,780 51,929 6,119 19,169 3,563 27,990 9,310 8,656 654 4,017 July.. 123,008 80,022 50,393 6,160 19,616 3,853 29,035 9,337 8,627 710 4,614 Aug... 124,411 79,499 49,915 6,276 19,466 3,842 30,340 9,668 8,997 671 4,904 Sept... 123,265 78,058 48,080 6,452 19,666 3,860 30,318 9,901 9,200 701 4,988 Oct.. . 123,370 79,940 49,602 6,624 19,666 4,048 28,467 10,021 9,283 738 4,942 Nov... 126,393 79,409 49,124 6,454 19,726 4,105 32,191 10,234 9,527 707 4,560 Dec... 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.. . 130,938 81,346 49,659 6,917 20,051 4,719 33,197 10,822 10,077 745 5,573 Mar.p 127,440 80,360 48,238 7,315 20,051 4,756 30,286 11,056 10,255 801 5,738 Apr.P. 134,654 82,055 49,369 7,609 20,151 4,926 35,241 11,669 10,782 887 5,689 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 i° 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 Bank for International Settlements; also includes European tain accounts previously classified as official institutions are included Fund through Dec. 1972. with banks; a number of reporting banks are included in the series for 3 Derived by applying reported transactions to benchmark data. the first time; and U.S. Treasury securities payable in foreign currencies 4 Excludes notes issued to foreign official nonreserve agencies. issued to official institutions of foreign countries have been increased in 5 Includes long-term liabilities reported by banks in the United States value to reflect market exchange rates as of Dec. 31, 1971. and debt securities of U.S. Federally sponsored agencies and U.S. cor 12 Includes $ 162 million increase in dollar value of foreign currency porations. liabilities revalued to reflect market exchange rates, as follows: short 6 Includes short-term liabilities payable in dollars to commercial banks term" liabilities, $15 million; and nonmarketable U.S. Treasury notes, abroad and short-term liabilities payable in foreign currencies to commer $147 million. cial banks abroad and to other foreigners. 7 Includes marketable U.S. Treasury bonds and notes held by commer Note.—Based on Treasury Dept, data and on data reported to the cial banks abroad. Treasury Dept, by banks and brokers in the United States. Table excludes 8 Principally the International Bank for Reconstruction and Develop IMF holdings of dollars, and U.S. Treasury letters of credit and non ment and the Inter-American and Asian Development Banks. negotiable, non-interest-bearing special U.S. notes held by other inter 9 Data on the 2 lines shown for this date differ because of changes national and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe1 American countries2 End of period countries Canada republics Asia Africa 197 2 61,526 34,197 4,279 1,733 17,577 777 2,963 197 3 66,861 45,764 3,853 2,544 10,887 788 3,025 J76,801 44.328 3.662 4.419 18,604 3.161 2.627 1974—Dec.3. \76,808 44.328 3.662 4.419 18,611 3.161 2.627 1975—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... 81,346 44,761 3,654 3,377 24,082 2,731 2,021 Mar.p 80,360 43,117 3,673 3,783 25,098 2,718 1,911 Apr.2’. 82,055 43,254 3,600 3,849 26,771 2,805 1,776 1 Includes Bank for International Settlements; also includes European institutions of foreign countries, as reported by banks in the United States; Fund 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 Total i Deposits U.S. Other foreign Total bills and short Treasury short cur certifi term Total bills and term rencies Demand Time2 cates liab. 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 J94,847 94,081 14,068 10,106 35,662 34,246 766 3,171 139 111 497 2,424 1974—Dec.7. \94,760 93,994 14,064 10,010 35,662 34,258 766 3,171 139 111 497 2,424 1975—Apr.. . 94,192 93,450 11,696 10,390 40,424 30,941 742 3,674 99 126 781 2,668 May. . 93,735 93,070 11,929 10,374 40,628 30,139 665 3,914 115 133 1,994 1,672 June. . 92,517 91,933 12,596 10,662 38,265 30,535 584 3,943 106 183 996 2,708 July.. 92,500 91,939 12,218 10,385 38,564 30,772 560 4,444 146 134 2,518 1,646 Aug.. 94,055 93,493 12,218 10,703 38,529 32,043 562 4,804 110 148 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.. 94,077 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... 97,454 96,800 13,349 10,272 39,657 33,522 654 4,520 118 162 2,435 1,805 Mar.35 93,542 92,982 13,126 10,661 37,572 31,623 555 4,763 130 179 2,495 1,959 Apr. 100,911 100,144 14,243 10,340 38,929 36,631 763 5,519 140 193 2,739 2,447 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 Time2 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—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.., 92,933 13,232 10,110 37,222 31,728 642 49,659 2,703 2,908 36,628 7,420 Mar.* 88,780 12,997 10,482 35,077 29,669 555 48,238 2,692 2,745 34,578 8,223 Apr.*, 95,392 14,103 10,147 36,190 34,189 763 49,369 2,782 2,319 35,668 8,599 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 9,743 5,502 2,143 2,359 68 933 469 1974—Dec. 7 /38,619 29,676 8,248 1,942 232 19,254 8,304 2.729 3.796 277 1,502 639 \38,525 29,441 8,244 1,936 232 19.029 8,445 2.729 3.796 277 1,643 639 1975—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.. . 43,275 32.555 7,418 2,086 275 22,775 10,078 3,111 5,116 320 1,532 642 Mar.®, 40,541 29,731 7,159 2,390 217 19.965 10,255 3,146 5,346 282 1,481 555 Apr.23. 46,024 34,479 7,883 2,422 134 24,039 10,782 3,438 5,406 387 1,551 763 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. □ JUNE 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 July Aug. Sept. Oct. Dec. Jan. Feb. Mar.p Apr.P Europe: Austria........................................ 607 607 661 667 688 606 635 700 714 693 525 559 Belgium-Luxembourg.............. 2,506 2,506 2,982 2,891 2,865 2,918 2,938 2,917 2,697 2,460 2,415 2,332 Denmark...................................... 369 369 325 308 311 327 361 332 375 434 678 681 Finland........................................ 266 266 361 406 391 367 380 391 309 313 334 341 France.......................................... 4,287 4,287 5,515 5,493 5,950 6,608 7,172 7,733 7,499 6,480 6,210 4,856 Germany..................................... 9,420 9,429 5,440 5,277 4,797 5,047 4,841 4,407 3,873 4,518 4,245 5,880 Greece.......................................... 248 248 299 307 361 331 313 284 263 340 261 292 Italy.............................................. 2,617 2,617 1,426 1,056 1,426 1,398 1,071 1,112 1,052 1,044 1,338 1,504 Netherlands................................. 3,234 3,234 3,539 3,301 3,059 3,199 3,301 3,148 3,132 3,558 3,124 3,023 Norway........................................ 1,040 1,040 1,118 1,052 982 886 970 996 888 925 770 926 Portugal....................................... 310 310 279 268 207 236 190 194 243 221 209 213 Spain............................................ 382 382 392 288 459 414 402 426 445 400 386 462 Sweden......................................... 1,138 1,138 2,010 2,203 2,195 2,252 2,241 2,286 2,266 2,312 2,287 2,352 Switzerland.................................. 9,986 10,137 7,965 8,282 8,048 8,205 8,029 8,556 8,611 8,648 8,852 9,016 Turkey.......................................... 152 152 106 134 116 128 120 118 88 104 106 113 United Kingdom..................... 7,559 7,584 6,461 8,342 6,268 6,722 7,177 6,885 7,611 8,236 6,482 6,589 Yugoslavia.................................. 183 183 106 104 128 138 175 126 83 178 222 179 Other Western Europe2........... 4,073 4,073 2,560 2,291 2,443 2,428 2,370 2,970 2,313 2,116 2,136 1,947 U.S.S.R........................................ 82 82 29 50 39 42 38 40 45 43 38 34 Other Eastern Europe............... 206 206 181 160 272 153 128 200 160 201 144 161 Total.................................... 48,667 48,852 41,755 42,882 41,005 42,405 42,853 43,821 42,669 43,224 40,765 41,461 Canada............................................. 3,517 3,520 3,921 3,637 3,944 3,567 4,091 3,075 3,885 4,721 4,233 4,173 Latin America: Argentina.................................... 886 886 1,061 1,054 984 1,135 1,150 1,147 1,208 1.134 1,169 1,238 Bahamas...................................... 1,448 1,054 1,991 2,190 1,503 2,221 2,989 1,834 3,197 2,946 1,709 4,606 Brazil............................................ 1,034 1,034 853 921 1,016 1,083 1,075 1,227 1,191 1.135 1,320 1,421 Chile............................................. 276 276 301 280 293 270 266 317 248 248 273 317 Colombia..................................... 305 305 376 367 379 366 387 414 484 536 520 571 Mexico.......................................... 1,770 1,770 1,809 1,824 1,872 1,956 2,183 2,078 1,899 2,048 2,033 2,133 Panama........................................ 488 510 657 649 752 765 840 1,097 1,145 953 778 961 Peru.............................................. 272 272 228 208 245 247 249 244 219 223 234 219 Uruguay....................................... 147 165 190 160 208 168 175 172 185 204 242 216 Venezuela.................................... 3,413 3,413 3,964 4,242 4,247 3,531 3,188 3,290 2,711 2,571 2,574 2,742 Other Latin American re publics ...................................... 1,316 1,316 1,417 1,371 1,469 1,399 1,368 1,500 1,431 1,455 1,626 1,712 Netherlands Antilles and Surinam.................................... 158 158 104 105 119 113 118 129 129 143 118 122 Other Latin America................. 526 596 1,603 1,534 1,897 1,046 2,141 1,501 1,613 2,441 1,746 2,517 Total.................................... 12,038 11,754 14,554 14,907 14,983 14,305 16,131 14,950 15,665 16,037 14,343 18,774 Asia: China, People’s Rep. of (China Mainland).................. 50 50 50 55 94 104 93 123 263 224 101 120 China, Republic of (Taiwan).. 818 818 1,015 1,054 1,058 1,061 1,051 1,025 1,010 1,072 1,100 1,134 Hong Kong................................. 530 530 540 577 741 684 683 623 667 682 741 709 India.............................................. 261 261 133 214 214 194 181 126 203 324 338 423 Indonesia..................................... 1,221 1,221 527 289 234 612 418 369 762 583 498 920 Israel............................................. 386 389 369 343 322 364 342 386 292 309 346 319 Japan............................................ 10,897 10,897 11,669 11,218 11,128 9,940 10,776 10,142 10,544 11,737 12,232 12,789 Korea............................................ 384 384 366 374 342 400 386 390 395 382 361 360 Philippines................................... 747 747 632 669 604 580 593 698 601 616 605 Thailand...................................... 333 333 284 255 207 194 193 252 279 224 225 ” '244’ Middle East oil-exporting countries 3................................ 4,633 4,608 4,432 4,804 5,111 5,785 5,987 6,440 6,428 6,535 6,699 7,145 Other............................................ 813 820 767 919 970 925 885 869 970 933 967 1,020 Total.................................... 21,073 21,082 20,785 20,770 21,025 20,844 21,589 21,443 22,414 23,621 24,214 Africa: Egypt............................................ 103 103 253 295 188 185 255 342 177 180 314 231 South Africa............................... 130 130 132 147 254 177 108 168 218 133 186 177 Oil-exporting countries4........... 2,814 2,814 2,785 2,872 2,649 2,447 2,372 2,238 2,134 2,208 1,919 2,256 Other............................................ 504 504 563 552 560 575 643 622 563 609 680 598 Total.................................... 3,551 3,551 3,732 3, 3,651 3,385 3,377 3,370 3,091 3,131 3,099 3,262 Other countries: Australia...................................... 2,742 2,742 3,231 3,114 2,912 2,766 2,712 2,013 2,046 2,070 2,001 1,931 All other...................................... 89 89 77 75 78 80 87 114 143 131 125 Total.................................... 2,831 2,831 3,308 3,189 2,989 2,846 2,800 2,127 2,190 2,201 2,126 2,015 Total foreign countries................. 91,676 91,589 88,055 89,252 87,598 87,352 90,842 88,786 89,915 92,933 88,780 95,392 International and regional: International5............................ 2,900 2,900 4,173 4,500 4,621 4,303 4,217 5,069 4,629 4,189 4,459 5,269 Latin American regional.......... 202 202 181 215 186 190 193 187 219 261 176 141 Other regional6.......................... 69 69 90 94 90 61 37 85 70 128 108 Total.................................... 3,171 3,171 4,444 4,804 4,901 4,583 4,471 5,293 4,933 4,520 4,763 5,519 Grand total......................... 94,847 94,760 92,500 94,055 92,499 91,935 95,313 94,078 94,848 97,453 93,542 100,911 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY-Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data7 1973 1974 1975 1973 1974 1975 Area and country Area and country Dec. 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 E El c u S a a d lv o a r d .. o ... r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 2 0 1 9 29 0 1 12 2 9 2 1 1 5 4 7 4 in Vietnam................. 98 126 70 62 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 60 Nicaragua................................ 99 119 127 125 133 Ghana......................... 20 22 18 Paraguay.................................. 29 40 46 38 43 Kenya......................... 23 20 31 19 Trinidad and Tobago............. 17 21 107 31 Liberia......................... 42 29 39 53 Southern Rhodesia.. . 2 1 2 1 Other Latin America: Sudan.......................... 3 2 4 12 Bermuda.................................. 242 201 116 100 Tanzania..................... 12 12 11 British West Indies................. 109 354 449 627 Tunisia........................ 7 17 19 29 Uganda....................... 6 11 13 22 Other Asia:................................. Zambia....................... 22 66 22 78 Afghanistan............................. 22 11 18 19 41 Burma...................................... 12 42 65 49 All other: New Zealand.............. 39 33 47 36 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). 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—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 1,074 751 243 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.................... 1,859 286 1,571 1,065 398 107 262 64 369 141 1,024 12 26 Mar.P............... 2,063 157 1,905 1,091 443 371 256 78 393 148 1,310 16 40 Apr.23................ 2,076 172 1,903 1,081 385 437 259 87 416 99 1,340 14 35 1 Excludes central banks, which are included with “Official institutions.” Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial 2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, States). 3 Until Dec. 1974 includes Middle East oil-exporting countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 1975 Area and country Dec. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.* Apr.* Europe: Belgium-Luxembourg..................... 10 14 14 14 14 14 14 13 13 13 13 13 14 Germany........................................... 9 209 209 209 210 217 216 216 215 212 238 247 228 Sweden............................................. 251 251 252 252 278 275 275 275 276 276 275 276 276 Switzerland...................................... 30 34 37 37 41 44 54 58 55 68 72 75 89 United Kingdom............................. 493 564 522 536 520 501 441 414 363 374 370 386 389 Other Western Europe................... r88 r97 97 98 102 114 152 152 117 199 204 371 455 Eastern Europe............................... 5 5 5 5 5 5 5 4 4 4 4 4 4 Total......................................... 885 1,174 1,135 1,151 1,169 1,170 1,157 1,134 1,044 1,146 1,176 1,372 1,455 Canada................................................. 713 412 412 408 406 404 399 400 393 393 416 416 422 Latin America: Latin American republics............... 12 11 13 13 13 13 13 33 33 33 31 31 31 Netherlands Antilles1...................... 83 118 134 178 149 149 158 160 161 159 131 121 120 Other Latin America....................... 5 4 5 5 5 5 6 6 6 7 8 8 8 Total......................................... 100 133 152 196 167 168 177 199 200 199 170 160 159 Asia: Japan................................................ 3,498 3,496 3,496 3,496 3,496 3,502 3,520 3,269 3,271 3,268 3,212 3,217 3,217 Other Asia....................................... 212 1,291 1,397 1,418 1,498 1,648 1,798 1,849 2,075 2,195 2,337 2,637 2,830 Total......................................... 3,709 4,787 4,893 4,914 4,994 5,149 5,319 5,118 5,346 5,473 5,549 5,854 6,047 Africa................................................... 151 181 181 201 211 261 311 311 321 340 350 396 411 All other............................................... Total foreign countries....................... 5,557 6,687 6,773 6,870 6,945 7,153 7,362 7,161 7,304 7,552 7,662 8,198 8,495 International and regional: International.................................... 97 342 29 128 66 52 324 60 322 593 1,034 957 153 Latin American regional.................. 53 57 44 40 35 35 35 29 29 19 19 19 16 Total.......................................... 150 399 74 169 101 87 359 89 351 612 1,053 975 170 Grand total............................... 5,708 7,087 6,847 7,039 7,048 7,240 7,721 7,250 7,655 8,164 8,715 9,173 8,665 1 Includes Surinam until Jan. 1976. year, and are based on a benchmark survey of holdings as of Jan. 31,1971, Note.—Data represent estimated official and private holdings of mar- and monthly transactions reports (see Table 14). ketable U.S. Treasury securities with an original maturity of more than 1 11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loan:5 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—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.................... 53,749 52,348 14,233 754 8,699 4,771 5,191 10,994 21,941 1,401 728 241 431 Mar.p............... 53,390 52,069 13,559 763 7,995 4,801 5,367 11,134 22,010 1,321 794 145 382 Apr.*................. 55,467 54,018 14,555 769 8,846 4,940 5,359 11,297 22,808 1,449 920 156 373 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
JUNE 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. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.P Apr.P Europe: 21 16 28 20 19 32 15 20 23 22 39 384 620 598 536 555 463 352 401 417 430 398 46 62 60 46 50 54 49 55 55 55 59 122 143 143 130 127 133 128 132 120 128 105 673 666 741 906 1,329 1,195 1,403 1,336 1,451 1,240 1,205 Germany................................................... 589 482 448 443 496 659 427 486 426 474 447 64 46 50 54 56 91 49 55 52 53 63 345 363 336 363 438 418 370 369 402 360 406 348 288 338 313 264 285 300 316 267 269 290 119 91 106 102 102 92 71 66 63 66 71 Portugal............................................ 20 27 22 18 15 19 16 20 20 21 18 196 257 214 245 256 261 249 274 262 231 241 180 155 185 182 152 182 167 124 111 121 105 335 254 290 214 274 314 232 245 278 340 400 15 26 43 56 54 121 86 59 82 73 68 United Kingdom..................................... 2,570 3,458 4,067 3,724 3,792 3,858 4,586 4,506 4,707 4,429 5,144 22 36 40 37 34 55 38 37 49 64 50 Other Western Europe............................. 22 22 62 23 22 25 27 26 29 29 27 U.S.S.R..................................................... 46 80 79 106 144 165 103 101 84 85 63 Other Eastern Europe............................. 131 130 110 110 96 103 114 124 159 109 107 Total.................................................. 6,245 7,222 7,960 7,630 8,275 8,526 8,781 8,752 9,056 8,599 9,306 2,776 2,651 2,340 2,626 2,728 2,742 2,812 3,015 2,978 2,917 3,253 Latin America: 720 1.105 1,115 1,219 1,343 1,229 1,203 1,246 1,338 1,290 1,372 3,398 7,813 6,627 6,432 7,250 6,856 7,513 7,981 9,830 10,303 10,294 1,415 1,390 1,505 1,491 1,536 1,785 2,200 2,132 2,173 2,318 2,351 290 472 435 405 351 381 360 312 343 324 349 713 666 667 684 662 649 689 651 586 545 539 1,972 2,676 2,762 2,705 2,623 2,565 2,800 2,776 3,079 3,034 3,236 503 581 578 721 903 886 1,032 1,262 1,167 1,108 785 518 626 646 624 599 565 588 624 634 597 638 63 90 73 54 52 56 51 68 62 46 39 Venezuela.................................................. 704 902 956 1,109 1,051 980 1,086 1,001 925 1,040 1,077 Other Latin American republics............. 866 1,055 1,005 1,014 1,041 969 980 1,045 1,061 986 989 Netherlands Antilles and Surinam......... 62 62 54 57 59 46 49 53 43 33 32 Other Latin America............................... 1,142 1,679 2,091 1,684 2,202 2,555 1,816 3,059 3,253 2,708 3,711 Total.................................................. 12,366 19,118 18,516 18,199 19,673 19,522 20,417 22,224 24,495 24,331 25,412 Asia: China, People’s Rep. of (China Mainland) 4 13 13 5 11 11 22 10 17 22 18 China, Republic of (Taiwan).................. 500 463 503 606 601 681 735 725 729 775 793 223 201 190 231 257 258 258 234 225 229 200 14 23 38 21 17 16 21 19 26 25 26 157 113 88 91 86 92 105 129 131 162 162 Israel......................................................... 255 362 358 398 389 387 491 419 365 307 314 Japan........................................................ 12,514 10,310 10,294 10,400 10,253 10,429 10,760 10,109 9,870 10,202 10,114 Korea........................................................ 955 1,462 1,502 1,515 1,555 1,505 1,556 1,605 1,715 1,600 1,713 372 481 410 340 338 347 377 434 507 510 520 458 461 494 474 501 499 495 535 516 537 533 Middle East oil-exporting countries1.... 330 527 493 624 446 506 524 525 600 646 588 Other......................................................... 441 544 572 651 702 665 683 734 705 731 649 16,222 14,960 14,956 15,357 15,156 15,396 16,025 15,477 15,405 15,747 15,631 Africa: Egypt......................................................... 111 134 141 125 127 130 104 106 101 103 110 329 489 492 504 513 540 546 547 546 575 631 Oil-exporting countries2.......................... 115 144 134 190 207 215 231 213 230 226 210 Other......................................................... 300 297 347 343 380 409 351 349 330 270 301 Total.................................................. 855 1,064 1,114 1,162 1,227 1,294 1,231 1,215 1,207 1,174 1,252 Other countries: Australia................................................... 466 446 466 509 532 554 535 503 492 521 498 99 80 88 80 105 91 73 87 113 98 U3 565 526 554 589 638 645 608 589 605 619 611 39,030 45,541 45,438 45,562 47,696 48,126 49,875 51,272 53,747 53,387 55,465 1 3 1 * 1 1 3 2 3 2 39,030 45,542 45,441 45,564 47,697 48,127 49,876 51,275 53,749 53,390 55,467 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. □ JUNE 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—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 3,382 289 204 1,278 1,030 Feb....... 9,511 8,352 1,268 1,632 5,452 1,012 148 2,602 576 3,471 289 210 1,270 1,093 Mar.p. . 9,775 8,616 1,316 1,737 5,563 1,011 149 2,702 570 3,605 292 296 1,195 1,115 Apr.P... 10,012 8,815 1,335 1,845 5,636 1,081 116 2,721 548 3,786 307 196 1,279 1,174 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.-Apr.P___ 1,010 -181 1,191 1,033 158 10,085 7,817 2,268 1,565 4,388 -2,824 682 745 -62 1975—Ap r -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.................. 551 441 110 101 10 2,503 2,086 418 402 1,547 -1,145 162 218 -56 Mar.p.............. 458 -78 536 398 138 2,524 1,972 552 360 1,282 -923 193 245 -51 Apr.P............... -508 -805 297 294 4 2,260 1,689 570 341 758 -417 182 143 40 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, 1975P 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.-Apr.p 783 90 abroad. 3 Includes transactions of international and regional organizations. 1975—Apr. 50 10 4 Includes transactions (in millions of dollars) of oil-exporting countries May 175 20 in Middle East and Africa as shown in the tabulation in the opposite June 106 column: 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.p 282 45 Apr.P 270 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1976 d 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 Asia2 Othersales (—) 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.-Apr. * 7,982 6,102 1,880 104 184 -37 187 247 752 127 140 780 63 21 1975—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........... 2,095 1,724 371 14 12 -14 63 41 133 48 11 175 5 5 Mar.*.... 2,137 1,555 582 79 26 -6 147 69 327 16 28 153 42 16 Apr.*........ 1,690 1,279 410 10 10 31 -21 49 84 23 25 254 22 -1 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 197 3 1,948 201 -33 -19 307 275 1,204 49 44 588 * 10 52 197 4 966 96 33 183 96 373 719 45 43 632 * 10 -483 197 5 681 82 -11 -16 116 80 116 127 30 1,437 -42 5 1 -993 1976—Jan.-Apr. * 389 6 -45 -3 26 -200 -65 48 13 463 -89 10 -20 30 1975—Ap r -16 1 2 -26 35 -99 -100 5 3 80 1 * * -6 May........ -212 3 1 -1 7 -81 -72 7 1 81 -11 * * -218 June........ 164 9 * 8 5 32 58 4 * 65 -1 * * 38 July......... 384 27 16 6 35 80 183 33 1 179 4 * * -17 Aug......... -358 13 -3 -18 -6 -69 -73 6 1 -1 1 * * -292 Sept......... -107 -13 6 25 -7 121 -19 -5 5 82 -7 * * -162 Oct.......... 296 1 -50 2 12 89 51 38 11 209 -4 3 * -11 Nov......... 69 39 8 -17 9 -41 -25 -2 6 75 4 1 * 11 Dec......... 232 2 3 3 8 56 74 6 6 140 -12 1 * 16 1976—Ja............n 212 -1 4 -1 -2 -161 7 29 3 219 -21 -2 -10 -13 Feb......... 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 Apr.*.... 160 3 9 -5 4 -26 -25 7 3 179 -14 7 * 4 1 See note 1 to Table 15. Note.—Statistics include State and local govt, securities, and securities 2 See note 2 to Table 15. of U.S. Govt, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance di rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other , ^ Credit Debit Period Total and foreign Eu Canada Amer Asia Af coun- End of balances balances re coun rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1973 — 818 139 " —957 — 141 —569 — 120 — 168 3 37 1973—Sept............................ 290 255 1974 —2 033 —60 — 1 973 —546 — 1 508 —93 144 7 22 Dec............................ 333 231 1975................ — 6*515 -2,225 -4’,290 -47 — 3* 178 -306 -619 15 -154 1974—Mar........................... 383 225 1976— June........................... 354 241 Jan.-Apr.* - 2,886 -130 -2,756 -242 -2,285 -70 -143 -9 7 Sept............................ 298 178 Dec............................ 293 194 1975—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 June........................... 380 233 July.... -699 -475 -224 -26 -109 -25 -69 * 4 Sept............................ 343 258 Aug.... -362 -21 -341 24 -204 -164 1 1 365 319 Sept.... -80 18 -98 -19 -129 25 24 -1 1 Oct —508 5 —513 48 —460 —48 —56 _3 6 1976—Mar.*......................... 411 333 Nov.... -714 -62 -652 -27 -584 6 3 -2 -48 Dec.. .. -1,139 -839 -299 80 -310 9 -78 -1 1 Note.—Data represent the money credit balances and 1976—Jan....... -333 94 -426 -109 -304 -9 -4 -3 2 money debit balances appearing on the books of reporting Feb___ - 1,201 -139 -1,063 33 -973 5 -110 -4 — 14 brokers and dealers in the United States, in accounts of Mar.*.. -974 9 -984 -167 -727 -72 -14 -5 2 foreigners with them, and in their accounts carried by Apr.*.. -378 -94 -284 * -281 6 -15 4 2 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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 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—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.r....... 166,098 6,574 3,267 3,307 153,191 31,508 65,019 4,861 51,803 6,333 Oct.r........ 169,480 7,919 4,892 3,027 155,067 32,677 64,214 5,226 52,950 6,495 Nov.r....... 171,624 8,691 5,763 2,928 156,154 33,519 64,357 5,504 52,773 6,780 Dec.r........ 175,934 6,723 3,661 3,061 162,914 34,491 68,403 5,874 54,145 6,298 1976—Jan.'........ 178,707 7,986 4,998 2,988 164,483 36,646 66,583 6,104 55,151 6,237 Feb........... 180,611 8,936 5,903 3,033 165,225 34,709 69,106 6,316 55,094 6,450 Mar.**....... 185,785 6,692 3,450 3,241 172,596 38,380 72,211 6,639 55,365 6,498 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—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.r....... 123,139 6,237 3,210 3,027 113,945 25,444 51,479 4,040 32,981 2,958 Oct.r........ 125,893 7,501 4,817 2,684 115,213 26,555 50,034 4,363 34,262 3,178 Nov.r....... 128,739 8,336 5,711 2,625 117,121 27,494 50,972 4,646 34,009 3,282 Dec.r........ 132,881 6,388 3,624 2,764 123,470 28,490 54,764 4,950 35,266 3,023 1976—Jan.r........ 134,275 7,650 4,958 2,692 123,538 29,776 52,671 5,228 35,863 3,086 Feb........... 135,873 8,621 5,858 2,763 123,999 28,362 54,492 5,364 35,782 3,253 Mar.*3....... 137,768 6,413 3,403 3,010 128,248 30,124 56,077 5,719 36,327 3,107 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—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.r........ 73,437 2,253 1,469 784 68,983 18,026 33,094 1,034 16,828 2,202 Feb........... 72,963 2,947 2,270 677 67,843 16,050 34,887 964 15,941 2,174 Mar.23....... 74,668 2,076 1,237 839 70,367 17,363 36,703 927 15,374 2,224 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—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.r 55,067 2,141 1,459 683 52,046 15,574 25,311 837 10,325 880 Feb........... 55,041 2,856 2,261 595 51,266 14,278 26,741 715 9,532 918 Mar.P....... 55,115 1,974 1,234 740 52,182 14,450 27,564 691 9,479 958 IN BAHAMAS AND CAYMANS i Total, all currencies............................. 1973—Dec........... 23,771 2,210 317 1,893 21,041 1,928 9,895 1,151 8,068 520 1974—Dec........... 31,733 2,464 1,081 1,383 28,453 3,478 11,354 2,022 11,599 815 1975—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 14,324 933 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........... 50,276 4,765 2,750 2,014 44,396 6,257 17,556 3,908 16,675 1,115 Mar.2'....... 251,075 3,482 1,425 2,056 46,636 6,745 18,205 4,251 17,434 957 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 6,933 155,204 15,407 8,849 6,557 133,540 28,214 63,419 22,577 19,330 6,257 155,617 14,935 8,703 6,233 134,594 29,192 62,287 23,236 19,879 6,088 156,910 16,861 10,366 6,494 133,806 26,725 64,700 22,223 20,158 6,243 162,342 18,618 12,204 6,414 137,189 30,412 64,955 21,106 20,715 6,535 160,703 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 6,326 166,098 18,329 10,853 7,476 141,619 30,314 70,771 19,746 20,789 6,149 169,480 19,083 11,211 7,872 144,223 31,781 70,365 20,629 21,449 6,174 171,624 19,786 11,129 8,657 145,095 32,380 70,415 21,190 21,111 6,743 175,934 20,132 12,076 8,056 149,418 33,911 72,182 22,763 20,562 6,385 178,707 22,569 12,689 9,879 150,231 35,514 72,269 21,707 20,740 5,908 1976—Jan.r 180,611 24,469 14,086 10,383 150,122 34,908 70,770 23,187 21,257 6,020 .....................Feb. 185,785 24,412 15,284 9,128 155,538 37,516 72,870 22,309 22,844 5,835 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 3,951 109,501 14,795 8,660 6,135 91,338 19,880 41,216 19,303 10,939 3,368 110,405 14,277 8,517 5,760 92,715 20,683 40,999 19,909 11,123 3,414 114,105 16,256 10,189 6,067 94,452 20,521 43,863 18,928 11,139 3,397 119,385 17,998 12,008 5,990 97,828 23,969 44,202 17,968 11,689 3,560 119,319 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 49,418 18,080 12,055 3,381 125,463 17,699 10,650 7,048 104,577 24,477 50,697 16,777 12,626 3,187 127,953 18,407 11,007 7,399 106,182 25,824 49,736 17,476 13,146 3,365 131,600 19,089 10,938 8,151 108,645 26,650 50,299 18,407 13,289 3,866 135,665 19,413 11,851 7,563 112,765 28,098 51,503 19,982 13,183 3,487 138,430 21,928 12,517 9,411 113,192 29,422 51,814 18,906 13,050 3,310 .........1976—Jan.r 139,825 23,727 13,840 9,887 112,716 28,510 50,434 20,314 13,458 3,382 142,028 23,624 15,015 8,609 115,446 29,851 51,768 19,369 14,457 2,958 IN UNITED KINGDOM 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 .........1973—Dec. 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 .........1974—Dec. 69,654 5,095 1,224 3,871 62,363 4,630 29,990 17,305 10,438 2,196 .........1975—Mar. 69,248 4,596 1,342 3,254 62,625 5,394 28,666 17,812 10,753 2,026 68,708 4,772 1,337 3,435 61,772 5,325 28,957 16,726 10,764 2,164 70,751 4,668 1,451 3,217 63,857 7,030 30,030 15,524 11,274 2,226 70,382 4,679 1,718 2,961 63,501 6,475 30,636 15,312 11,077 2,203 72,457 5,251 1,904 3,348 65,012 6,260 32,097 15,617 11,038 2,194 72,120 5,112 1,833 3,279 64,962 6,396 33,130 14,486 10,950 2,046 72,742 4,905 1,766 3,139 65,699 6,746 32,334 14,909 11,711 2,138 73,924 5,497 2,028 3,468 66,267 6,470 33,340 15,180 11,275 2,161 74,883 5,646 2,122 3,523 67,261 6,494 32,985 16,553 11,229 1,976 73,437 5,645 1,749 3,896 65,914 6,444 33,534 15,053 10,882 1,878 .........1976—Jan. 72,963 5,491 1,914 3,577 65,544 6,648 31,444 16,463 10,989 1,928 .....................Feb. 74,668 5,185 1,549 3,637 67,433 7,179 32,667 15,785 11,802 2,050 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 ... 1973_Dec 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 49,533 4,805 1,189 3,616 43,546 3,072 19,128 14,688 6,658 1,183 .........1975—Mar. 49,177 4,297 1,313 2,984 43,758 3,886 17,997 15,158 6,717 1,122 49,479 4,487 1,314 3,173 43,784 4,220 18,640 14,135 6,789 1,208 51,848 4,369 1,412 2,957 46,312 5,962 20,039 13,083 7,228 1,167 51,826 4,421 1,684 2,737 46,217 5,478 20,775 12,915 7,049 1,188 54,017 4,975 1,873 3,103 47,912 5,288 22,087 13,249 7,287 1,129 54,683 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 54,478 4,696 1,735 2,961 48,660 5,708 22,452 12,500 7,999 1,123 56,696 5,288 2,009 3,279 50,185 5,478 23,641 12,999 8,066 1,223 57,820 5,415 2,083 3,332 51,466 5,442 23,349 14,498 8,176 940 56,039 5,446 1,732 3,714 49,676 5,422 23,369 13,070 7,816 917 .........1976—Jan. 55,848 5,311 1,901 3,410 49,606 5,471 21,911 14,326 7,899 931 .....................Feb. 56,266 4,982 1,509 3,473 50,340 6,049 22,082 13,595 8,614 944 IN BAHAMAS AND CAYMANS 1 23,771 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 ........1973__Dec 31,733 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 33,793 7,228 5,081 2,147 25,875 8,498 12,614 2,520 2,243 690 ........1975—Mar. 35,667 7,420 5,083 2,337 27,536 8,756 13,694 2,769 2,318 711 38,198 9,090 6,766 2,324 28,309 6,872 16,018 2,977 2,441 799 39,646 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 39,614 9,991 7,407 2,584 28,933 8,401 15,539 2,500 2,492 690 41,624 8,800 5,715 3,085 31,913 9,128 17,317 2,860 2,607 911 41,601 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 44,166 10,833 7,056 3,778 32,327 9,725 17,296 2,775 2,577 961 44,471 11,082 6,710 4,372 32,239 10,553 15,972 3,230 2,483 1,150 45,203 11,146 7,628 3,519 32,950 10,569 16,726 3,308 2,348 1,106 48,694 13,110 8,088 5,022 34,475 11,230 17,543 3,416 2,287 1,109 .........1976—Jan. 50,276 15,016 9,197 5,820 34,159 10,294 18,017 3,407 2,440 1,100 ....................Feb. 251,075 15,469 10,915 4,554 34,931 10,850 18,332 2,998 2,751 676 Digitized fFoor rF nRoAteSs sEeeR p . A-74. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1976 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody E p n er d i o o d f Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked E pe n r d i o o d f Total Deposits i S n te h v r o e m r s t t Deposits i S n t h e v r o e m r s t t U K d n i o n i m t g ed Canada ments 1 ments 1 1972.............. 325 50,934 215,530 1973.............. 251 52,070 217,068 1972................... 2,374 1,910 55 340 68 911 536 1974.............. 418 55,600 16,838 1973................... 3,164 2,588 37 435 105 1,118 765 1974................... 3,337 2,583 56 429 268 1,350 959 1975—May. . 310 61,539 16,818 June... 373 61,406 16,803 1975—Feb......... 3,402 2,516 52 425 409 1,088 1,138 July... 369 60,999 16,803 Mar......... 3,306 2,450 67 407 384 1,079 1,129 Aug... 342 60,120 16,803 Apr......... 3,440 2,474 48 373 545 1,089 1,274 Sept... 324 58,420 16,795 May........ 3,264 2,238 47 453 526 931 1,239 Oct.... 297 60,307 16,751 June........ 3,214 2,162 193 427 432 997 1,127 Nov... 346 60,512 16,745 July, . . 3,293 2,191 226 475 402 904 1,107 Dec.. . 352 60,019 16,745 Aug......... 3,523 2,276 219 508 520 1,052 1,307 Sept......... 3,659 2,443 246 474 496 1,139 1,248 1976—Jan.... 294 61,796 16,669 Oct.......... 3,488 2,484 330 425 249 1,199 1,153 Feb.... 412 62,640 16,666 Nov......... 3,824 2,661 423 456 284 1,289 1,330 Mar... 305 61,271 16,660 Dec......... 3,675 2,653 284 496 241 1,288 1,090 Apr.... 305 62,527 16,657 May. . 303 63,225 16,647 1976—Jan.......... 4,075 3,016 320 464 274 1,469 1,263 Feb.*.. .. 4,346 3,233 341 447 325 1,480 1,333 Mar.*__ 4,396 3,341 393 434 228 1,683 1,322 1 Marketable U.S. Treasury bills, certificates of in debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign i Negotiable and other readily transferable foreign obligations payable on demand currencies. or having a contractual maturity of not more than 1 year from the date on which the 2 The value of earmarked gold increased because of the obligation was incurred by the foreigner. 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 J 3,119 2,635 484 5,721 5,074 410 237 I 3,417 2,948 469 6,302 5,643 393 267 1973—Mar...................... 3,320 2,848 472 7,017 6,147 456 414 June..................... 3,319 2,796 523 7,285 6,444 493 349 Sept...................... 3,579 2,931 648 7,625 6,698 528 399 Dec....................... 4,006 3,290 716 8,482 7,569 493 421 1974—Mar...................... 4,414 3,590 823 10,475 9,541 407 526 June..................... 5,139 4,184 955 11,046 10,122 429 496 Sept...................... 5,605 4,656 949 10,698 9,730 430 537 Dec....................... 5,828 4,905 922 11,268 10,201 473 594 1975—Mar...................... 5,804 4,940 864 10,910 9,769 453 688 June..................... 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 compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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.* Dec. Mar. June Sept. Dec.* 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. o JUNE 1976 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1971—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 Dec.1 3 3, , 6 5 0 4 3 0 3 3 , , 3 2 1 7 2 4 1 19 6 1 3 7 7 4 1 5 5 7 7 4 7 9 5 1 1 8 8 4 7 6 6 4 0 6 7 5 03 8 1 1 3 5 3 6 4 3 0 78 6 8 8 7 6 10 38 9 1973—Mar.. 3,781 3,411 156 802 764 165 63 796 123 393 105 45 June. 3,798 3,446 180 805 756 146 65 825 124 390 108 48 Sept.. 4,000 3,620 216 822 788 147 73 832 134 449 108 51 Dec.. 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. 3,536 3.809 363 699 844 184 138 756 123 515 126 61 Sept.. 3,371 3,949 370 704 881 181 145 796 119 571 122 59 Dec.. 3,768 4,159 364 642 918 187 143 1,044 112 569 127 54 1975—Mar.. 4,044 4,139 340 654 962 182 160 1,006 102 540 139 54 June. 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.p 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 months1 money2 bills, 3 months money deposit money3 60-90 money 5 3 months money rate 3 months rates days4 197 3 . 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 197 4 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 197 5 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—May 6.89 6.88 10.00 9.47 7.81 6.25 7.56 3.38 5.32 3.64 1.98 6.50 June 6.96 6.88 9.72 9.43 7.00 6.25 7.31 3.38 4.91 2.76 1.37 6.50 July. 7.22 7.17 9.86 9.71 7.34 6.25 7.25 3.38 3.98 2.98 1 .99 6.50 Aug. 7.72 7.42 10.59 10.43 8.59 6.43 7.16 3.38 1.93 2.89 1.51 6.00 Sept. 8.37 7.74 10.43 10.36 9.40 6.50 6.91 3.38 4.25 2.60 .94 5.50 Oct.. 8.28 7.92 11.38 11.42 9.88 6.93 6.53 3.13 3.27 4.22 4.35 5.50 Nov. 8.44 8.29 11.21 11.10 11.34 7.00 6.74 3.13 3.36 4.67 4.19 5.50 Dec.. 8.59 8.66 10.88 10.82 9.61 7.00 6.42 3.13 3.84 4.88 4.34 5.50 1976—Jan.. 8.59 8.75 9.83 9.87 9.08 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 Apr. 8.97 8.65 9.10 8.97 7.69 7.56 3.13 2.76 2.96 2.50 4.50 May 8.93 8.96 10.45 7.53 3.13 3.68 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 $47,125 million and $47,535 million, respectively, on Mar. 31, 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
JUNE 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 May 31, 1976 Rate as of May 31, 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............................. 28.0 May 1976 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 11 .5 May 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 certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; 27. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (Deutsche (rupee) (pound) (lira) (yen) mark) 1972..................... 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973..................... 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974.................... 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1975.................... 130.77 5.7467 2.7253 98.297 17.437 23.354 40.729 11.926 222.16 .15328 .33705 1975—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 May.......... 123.37 5.4535 2.5517 102.02 16.487 21.272 39.035 11.080 180.79 .11676 .33444 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—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 May......... 39.079 8.0000 36.811 99.33 18.184 3.3195 114.85 1.4788 22.653 40.205 180.79 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. W allich Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee David M. Lilly OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF STAFF DIRECTOR FOR MANAGEMENT DIRECTOR FOR MONETARY POLICY Thomas J. O’Connell, Counsel to the John M. Denkler, Staff Director Chairman Stephen H. Axilrod, Staff Director Robert J. Lawrence, Deputy Staff 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 Peter M. Keir, Assistant to the Board and Program Director for Board Stanley J. Sigel, Assistant to the Board Contingency Planning Frank O’Brien, Jr., Special Assistant to the Normand R. V. Bernard, Special Assistant to William W. Layton, Director of Equal Board the Board Employment Opportunity Donald J. Winn, Special Assistant to the Brenton C. Leavitt, Program Director for Board Banking Structure DIVISION OF RESEARCH AND STATISTICS Lyle E. Gramley, Director James L. Kichline, Associate Director Joseph S. Zeisel, Associate Director Edward C. Ettin, Adviser LEGAL DIVISION John H. Kalchbrenner, Adviser James B. Eckert, Associate Adviser John D. Hawke, Jr., General Counsel John J. Mingo, Associate Adviser Baldwin B. Tuttle, Deputy General Eleanor J. Stockwell, Associate Adviser DIVISION OF FEDERAL RESERVE Counsel Helmut F. Wendel, Associate Adviser BANK EXAMINATIONS AND BUDGETS Robert E. Mannion, Assistant General James R. Wetzel, Associate Adviser Counsel Jared J. Enzler, Assistant Adviser William H. Wallace, Director Allen L. Raiken, Assistant General Counsel Robert M. Fisher, Assistant Adviser Albert R. Hamilton, Associate Director Gary M. Welsh, Assistant General Counsel J. Cortland G. Peret, Assistant Adviser Clyde H. Farnsworth, Jr., Assistant Director Charles R. McNeill, Assistant to the Stephen P. Taylor, Assistant Adviser P. D. Ring, Assistant Director General Counsel Levon H. Garabedian, Assistant Director A76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
DIVISION OF 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 IHelen B. Junz, Adviser Robert S. Plotkin, Assistant Director Samuel Pizer, Adviser George B. Henry, Associate Adviser DIVISION OF DATA PROCESSING Charles J. Siegman, Associate Adviser OFFICE OF THE SECRETARY Edwin M. Truman, Associate Adviser Charles L. Hampton, Director 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 tOn leave of absence. DIVISION OF PERSONNEL DIVISION OF BANKING Keith D. Engstrom, Director SUPERVISION AND REGULATION Charles W. Wood, Assistant Director Brenton C. Leavitt, Director OFFICE OF THE CONTROLLER Ralph H. Gelder, Associate Director John E. Ryan, Associate Director John Kakalec, Controller William W. Wiles, Associate Director Tyler E. Williams, Jr., Assistant Controller Peter E. Barn a, Assistant Director Frederick R. Dahl, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director Walter W. Kreimann, Director John T. McClintock, Assistant Director Donald E. Anderson, Assistant Director Thomas E. Mead, Assistant Director John D. Smith, Assistant Director Thomas A. Sidman, Assistant Director *On loan from the Federal Reserve Bank of St. Louis. All 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 Philip C. Jackson, Jr. Henry C. Wallich Philip E. Coldwell Monroe Kimbrel Willis J. Winn David M. Lilly 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. Fishbume 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 0. 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. 125pp. $1.00each; lOormore 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. 1972. 397 pp. Cloth ed. $5.00 each; 10 or more Sec. 1. Banks and the Monetary System. 1962. to one address, $4.50 each. Paper ed. $4.00 each; 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 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
Federal Reserve Board Publications A 81 Introduction to Flow of Funds. 1975. 64 pp. $.50 Revision of Bank Credit Series. 12/71. each; 10 or more to one address, $.40 each. Assets and Liabilities of Foreign Branches of Improved Fund Availability at Rural Banks (Re U.S. Banks. 2/72. port and study papers of the Committee on Rural Bank Debits, Deposits, and Deposit Turnover— Banking Problems). 1975. 133 pp. $1.00; 10 or Revised Series. 7/72. more to one address, $.85 each. Yields on Newly Issued Corporate Bonds. 9/72. Improving the Monetary Aggregates (Report of the Recent Activities of Foreign Branches of U.S. Advisory Committee on Monetary Statistics). Banks. 10/72. 1976. 43 pp. $1.00 each; 10 or more to one Revision of Consumer Credit Statistics. 10/72. address, $.85 each. One-Bank Holding Companies Before the 1970 Amendments. 12/72. STAFF ECONOMIC STUDIES Yields on Recently Offered Corporate Bonds. 5/73. Studies and papers on economic and financial subjects Capacity Utilization in Major Materials Indus that are of general interest in the field of economic tries. 8/73. research. Credit-Card and Check-Credit Plans at Commer cial Banks. 9/73. Summaries Only Printed in the Bulletin Rates on Consumer Instalment Loans. 9/73. (Limited supply of mimeographed copies of full New Series for Large Manufacturing Corpora text available upon request for single copies) tions. 10/73. U.S. Energy Supplies and Uses, Staff Economic Household-Sector Economic Accounts, by David Study by Clayton Gehman. 12/73. F. Seiders. Jan. 1975. 84 pp. Capacity Utilization for Major Materials: Re The Performance of Individual Bank Holding vised Measures. 4/74. Companies, by Arthur G. Fraas. Aug. 1975. Numerical Specifications of Financial Variables 27 pp. and Their Role in Monetary Policy. 5/74. The Growth of Multibank Holding Companies: Inflation and Stagnation in Major Foreign In 1956-73, by Gregory E. Boczar. Apr. 1976. 27 dustrial Countries. 10/74. pp. The Structure of Margin Credit. 4/75. Extending Merger Analysis Beyond the Single- New Statistical Series on Loan Commitments at Market Framework, by Stephen A. Rhoades. Selected Large Commercial Banks. 4/75. May 1976. 25 pp. Recent Trends in Federal Budget Policy. 7/75. Seasonal Adjustment of Mx—Currently Pub Banking and Monetary Statistics, 1974. Selected lished and Alternative Methods, by Edward series of banking and monetary statistics for 1974 R. Fry. May 1976. 22 pp. only. 2/75, 3/75, 4/75 and 7/75. Recent Developments in International Financial Markets. 10/75. Printed in Full in the Bulletin MINNIE: A Small Version of the Staff Economic Studies shown in list below. MIT-PENN-SSRC Econometric Model, Staff Economic Study by Douglas Battenberg, Jared J. Enzler and Arthur M. Havenner. 11/75. REPRINTS An Assessment of Bank Holding Companies, Staff (Except for Staff Papers, Staff Economic Studies, and Economic Study by Robert J. Lawrence and some leading articles, most of the articles reprinted do Samuel H. Talley. 1/76. not exceed 12 pages.) Industrial Electric Power Use. 1/76. Revision of Money Stock Measures. 2/76. Seasonal Factors Affecting Bank Reserves. 2/58. Survey of Finance Companies, 1975. 3/76. Measures of Member Bank Reserves. 7/63. Changing Patterns in U.S. International Trans Research on Banking Structure and Perform actions. 4/76. ance, Staff Economic Study by Tynan Smith. Changes in Time and Savings Deposits at Com 4/66. mercial Banks, July-October 1975. 4/76. A Revised Index of Manufacturing Capacity, Revised Series for Member Bank Deposits and Staff Economic Study by Frank de Leeuw with Aggregate Reserves. 4/76. Frank E. Hopkins and Michael D. Sherman. 11/66. Bank Holding Company Financial Developments U.S. International Transactions: Trends in in 1975. 4/76. 1960-67. 4/68. Changes in Bank Lending Practice, 1975. 4/76. Measures of Security Credit. 12/70. Industrial Production— 1976 Revision. 6/76. Revised Measures of Manufacturing Capacity Federal Reserve Operations in Payment Mecha Utilization. 10/71. nisms: A Summary. 6/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A82 Federal Reserve Bulletin □ June 1976 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE OR PERIOD APPROXIMATE TO WHICH DATA WEEKLY RELEASES RELEASE DAY REFER Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on and All Other Actions Friday Week ended previous of the Board (H.2) Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday Wednesday, 2 weeks States (H.8) earlier Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding by Industry (H.12)2 Wednesday Wednesday, 1 week earlier Deposits, Reserves, and Borrowings of Member Banks (H.7) Wednesday Week ended 3 Wed nesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks (H.4.1) Wednesday Foreign Exchange Rates (H.10) Monday Week ended previous Friday Money Stock Measures (H.6) Thursday Week ended Wednes day of previous week Open Market Money Rates and Bond Prices (H.15) Monday Week ended previous Saturday Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednes day of previous week Weekly Condition Report of Large Commercial Banks in New Thursday Previous Wednesday York and Chicago (H.4.3) Weekly Condition Report of Large Commercial Banks and Do Wednesday Wednesday, 1 week mestic Subsidiaries (H.4.2)3 earlier Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wed nesday of previous week SEMIANNUALLY AND BIMONTHLY RELEASES Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last re of month lease MONTHLY RELEASES Assets and Liabilities of all Member Banks, by Districts (G.7.1) 14th of month Last Wednesday of previous month Automobile Instalment Credit Developments (G.26) 6th working day 2nd month previous of month Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2On second Wednesday of month, contains monthly data release. 3Contains revised H.4.3 data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Reserve Board Publications A83 MONTHLY RELEASES (cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Changes in Status of Banks and Branches (G.4.5) 25th of month Previous month Consumer Instalment Credit (G.19) 3rd working 2nd month previous day of month Federal Reserve System Memorandum on Exchange Charges (K.14) 5th of month Period since last re lease Finance Companies (G.20) 5th working 2nd month previous day of month Foreign Exchange Rates (G.5) 1st of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.3) 15th of month Previous month Interdistrict Settlement Account (G.15) 15th of month Previous month Interest Rates Charged on Selected Types of Bank Loans (G.10) 15th of month 2nd month previous Loan Commitments at Selected Large Commercial Banks (G.21) 20th of month 2nd month previous Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposit (G.9) previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month Summary of Equity Security Transactions (G.16) Last week of Release date month QUARTERLY RELEASES Bank Rates on Short Term Business Loans (E.2) 18th of 1st 15 days of Febru March, June, ary, May, August, September, November December Capacity Utilization in Manufacturing (E.5) 21st of Jan Previous quarter uary, April, July, October Finance Rates and Other Terms on Selected Types of Consumer 25th of Jan 2nd month previous Instalment Credit Extended by Major Finance Com uary, April, panies (E.10) July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 1 15th of Febru Previous quarter ary, May, Volume and Composition of Individuals’ Saving I August, J (Flow of funds series) (E.8) November Geographical Distribution of Assets and Liabilities of Major 15th of Previous quarter Foreign Branches of U.S. Banks (E.ll) March, June, September, December Sales, Revenue, Profits, and Dividends of Large Manufacturing Corpo 10th of March, 2nd quarter previous rations (E.6) July, Septem ber, December SEMIANNUAL RELEASES Assets and Liabilities of Commercial Banks, by Class of Bank May and No End of previous De (E.3.4) vember cember and June Check Collection Services—Federal Reserve System (E.9) February Previous six and July months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A84 Federal Reserve Bulletin □ June 1976 DATE OR PERIOD APPROXIMATE TO WHICH DATA SEMIANNUAL RELEASES (cont.) RELEASE DAY REFER List of OTC Margin Stocks (E.7) June 30, De Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No End of previous De Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) ANNUAL RELEASES Aggregate Soufm mAanrnieusal Surveys of Security Credit February End of Previous June Extension (C.2) Bank Debits and Demand Deposits (C.5) March 25 Previous Year Member Bank Income (C.4) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1st quarter of End of previous year Banks that Maintain Clearing Accounts with Federal Reserve year Banks (G.4) (Supplements issued monthly) 15th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A85 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
A86 Federal Reserve Bulletin □ June 1976 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 and related items, 2, 4, 13 Mining, production index, 49 UNEMPLOYMENT, 52 Mobile home shipments, 51 U.S. balance of payments, 58 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 12 Commercial bank holdings, 17, 20 Mortgages (See Real estate loans and Residential Member bank holdings, 13 mortgage loans) Treasury deposits at Reserve Banks, 3, 10, 32 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 20, 30, 34, 42, 44 Bank holdings, 14, 16, 19, 30, 34, 35 Dealer transactions, positions, and financing, 36 NATIONAL banks, 14, 24 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 National defense expenditures, 33 Foreign and international holdings, 10, 66, 68, 72 National income, 54, 55 International transactions, 66, 68 Nonmember banks, 15, 16, 17, 24 New issues, gross proceeds, 38 Open market transactions, 9 OPEN market transactions, 9 Outstanding, by type of security, 34, 35 Ownership, 34, 35 PAYROLLS, manufacturing index, 50 Yields and prices, 28, 29 Personal income, 55 Utilities, production index, 49 Prices: Consumer and wholesale commodity, 50, 53 VETERANS Administration, 43, 44 Security, 29 Prime rate, commercial banks, 26 WEEKLY reporting banks, 18-22 Production, 48, 49, 50 Profits, corporate, 40, 41 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A87 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
Cite this document
Federal Reserve (1976, May 31). Federal Reserve Bulletin, 1976-06. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197606
@misc{wtfs_bulletin_197606,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1976-06},
year = {1976},
month = {May},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197606},
note = {Retrieved via When the Fed Speaks corpus}
}