Federal Reserve Bulletin, 1976-07

JULY 1976 FEDERAL RESERVE BULLETIN Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN NUMBER 7 □ VOLUME 62 □ JULY 1976 CONTENTS 557 Prices in Recession and Recovery A1 Financial and Business Statistics 567 Changes in Time and Savings Deposits A1 Contents at Commercial Banks, A2 U.S. Statistics October 1975-January 1976 A58 International Statistics 574 Statements to Congress A76 Board of Governors and Staff 581 Record of Policy Actions A78 Open Market Committee and Staff ; of the Federal Open Market Committee Federal Advisory Council 592 Law Department A79 Federal Reserve Banks and Branches 646 Announcements A80 Federal Reserve Board Publications 650 Industrial Production A82 Index to Statistical Tables A84 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation and Statistical Releases 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

Prices in Recession and Recovery This article was prepared in the Wages, Prices, objectives has led to large Federal deficits— and Productivity Section of the Division of Re­ there has been only one Federal surplus since search and Statistics. 1960—and these deficits have been an important factor in the Nation’s long-run inflationary The U.S. economy is now in its second year problem. of recovery from a sharp, prolonged recession. The underlying inflationary trend was exacer­ Associated with that recession was a pro­ bated by a series of severe economic shocks in nounced deceleration of inflation to a rate about the early 1970’s. There were poor agricultural half of that in 1974, which was the highest in harvests abroad in 1972 and at home in 1974. 25 years. Since the recovery began, however, Reflecting reduced domestic supplies as well as the inflation rate has remained unusually high other cost pressures, consumer food prices re­ by historical standards. The severity of the corded annual increases of nearly 15 per 1973-74 inflationary episode and its residue cent in 1973 and 1974. The oil embargo of 1973 reflect both an accumulated inflationary bias was followed by a quadrupling of world crude arising from structural changes in the economy oil prices and steep cost increases for alternative and the combined effects of a number of severe energy sources. During 1973-74, there were exogenous shocks to the economy. simultaneous rapid business expansions in a The unusual events that led to double-digit number of industrialized countries. This led to price increases in 1973 and 1974 are largely intensive speculation in commodity markets as behind us, but their legacy is still present. A shortages appeared, and resulted in steep developed inflationary process takes a long time cost-price increases as capacity levels were to unwind, and the continuance of an underlying strained. Currency devaluations by the United rate of inflation in the neighborhood of 6 per States made our imports more expensive and, cent during the recovery reflects that fact. at the same time, led to some bidding up of In addition, however, there has been a clear prices of domestic goods as demands for our tendency over the post-World-War-II period exports increased. Coinciding with these devel­ toward an increasingly higher level of inflation at opments were first an easing, and then a re­ the low point of the business cycle. The factors moval, of wage and price controls, which had underlying this pattern are many. There have previously restrained some price and wage rises. been basic changes in the processes that deter­ The intensity of the resulting inflation fed ex­ mine prices and wages, in part because of pectations of further inflation and was associated changes in governmental policies. For example, with domestic inventory speculation. This gen­ the development and use of stimulative policies eral situation, reflecting as it did important un­ to combat the forces of recession probably foreseen exogenous events, made control of has dampened price cutting during downturns. inflation through traditional fiscal and monetary Similarly, more generous programs of un­ policy measures extremely difficult. employment compensation, while alleviating the hardship of income loss, also have diluted the influence of rising unemployment on wage ECONOMIC SETTING determination. Moreover, extensive use of Fed­ eral programs to promote high employment, The recovery of the U.S. economy since the rapid economic growth, and a variety of social spring of 1975 has proceeded to the point where Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Federal Reserve Bulletin □ July 1976 Price levels Ratio scale, index, January 1972=100 WHOLESALE PRICES 180 160 r Industrial commodities Dept, of Labor data, seasonally adjusted. many major economic variables, including total the fall, and earlier this year these prices were output and employment, now exceed their pre­ actually declining. Largely because these de­ recession peaks. Although the recovery has been clines offset increases elsewhere, consumer vigorous, serious sectoral imbalances have not price increases averaged only 4.6 per cent, developed and the recovery stage of the cycle annual rate, over the 6 months ending in May has been completed without stimulating addi­ 1976. tional inflation. The recovery of demand was If the food and energy price changes are led by consumer spending on both nondurable disregarded, a clearer picture of the underlying and durable goods, particularly automobiles. trend emerges. Prices of the remaining items Housing began to move up early in the recovery, in the consumer price index (CPI) were rising but lately, further growth of activity has been at about a 10 per cent annual rate in the first limited by problems in the multifamily housing quarter of 1975, but moderated to about a 5V2 sector. A return of inventory investment from per cent annual rate around midyear. By the first rapid liquidation to moderate accumulation quarter of 1976 these prices were temporarily brought additional strength to the recovery. rising at an annual rate of a little over 8 per Business profits have recovered from the de­ cent—reflecting step-ups in postal rates, public pressed recession levels. Spending by business transportation, and auto insurance rates. Data on fixed capital has lagged more than it usually for April and May suggest that the second does during a recovery, however, reflecting rel­ quarter annual rate of change may be back in atively high excess capacity in some lines and the vicinity of 6V2 per cent. continued pursuit of cautious investment poli­ By the foregoing measure of price perform­ cies by business firms. ance, inflation thus appears to have reached its During the course of the recovery the under­ lowest rate just after the time that total lying rate of price change has been obscured output was at its trough in the first quarter of somewhat by erratic movements in food and 1975. But with that, the underlying improve­ gasoline prices. The rise in consumer prices had ment of price performance came to an end. The slowed to a 6 per cent annual rate in the second failure of the inflation rate to decline further quarter of 1975, but then jumped to more than cannot be ascribed to an abrupt reheating of the an 8 per cent rate in the following quarter as economy. Unemployment, which had reached food prices responded to reduced meat supplies a high of 8.7 per cent of the labor force in the and as gasoline prices rose following the impo­ second quarter of 1975, did not go below 8 per sition of fees on crude oil imports. The rise in cent of the civilian labor force until the first food and gasoline prices began to subside in quarter of 1976. The previous peak in real GNP Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices in Recession and Recovery 559 was not regained until the same quarter. Capac­ Economic recession and recovery ity utilization rates for industrial materials pro­ Quarter to quarter percentage char duction did not reach 80 per cent until recently; utilization rates were in excess of 90 per cent GNP 10 during 1973-74. H XL + Although the exogenous forces that led to the 0 U "U ~ CT intensification of price pressure in 1973-74 have in general stabilized or subsided, their impact 10 has not ended as abruptly as it began. In order to examine better the process by which infla­ TOTAL UNEMPLOYMENT RATE 10 tionary impulses are transmitted through the economy and the time that is required for ad­ n justment to take place, the following sections : 6 n n FI 0 review developments in wholesale and con­ sumer prices using a stage-of-processing frame­ CAPACITY UTILIZATION RATE 100 work. Foods, which account for more than TOTAL MATERIALS one-fifth of all consumer expenditures in the 80 m 0 Rate of change of prices 1974 1975 ’76 Quarter to quarter percentage chan GNP data, percentage change at annual rates, from Dept, of Commerce; unemployment rate data, from BLS; rate of ca­ CONSUMER PRICE INDEX pacity utilization of total materials industries, F.R. ALL ITEMS 20 United States, are discussed first. Then goods and materials are grouped according to whether they are crude—entering the economy for the 10 first time, intermediate, or finished and are to be transacted for the last time at the retail level. In addition, costs arising from the labor sector 0 are reviewed and the implications for the profit CONSUMER PRICE INDEX share are described. EXCLUDING FOOD AND ENERGY 20 FOOD 10 Aside from short-term, sharp fluctuations, ad­ vances in retail food prices have been trending 0 downward since the unusually high rates of 1973. Food prices over the 12 months ending 20 December 1973 rose 20 per cent. The following year this increase had decelerated to 12 per cent and by December 1975 it had dropped to 6V2 per cent. Although food price declines earlier 10 this year were reversed in the spring, over-all food prices were still a shade lower in May than they had been last December. 0 During 1975 about three-fifths of the over-all Data from Bureau of Labor Statistics, and Dept, of Commerce price increase for foods was due to rising prices (GNP implicit price deflator). Quarter-to-quarter changes at of meat, poultry, and fish; these items rose 15V2 seasonally adjusted annual rates. 1976 Q2, estimates based on partial data. per cent during the year. Most of the increase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Federal Reserve Bulletin □ July 1976 Food prices vived a temporary increase during the summer 6-month percentage changes on news of a large shortfall in Soviet produc­ tion. Despite a sale of 16 million tons of grain to the Soviet Union, the record crop brought Farm products significantly lower grain prices toward the encj of the year. Reflecting the improved grain situ­ Foods ation, food prices dropped sharply in the first at home quarter of 1976, as the price of beef declined Finished foods in response to renewed production of grain-fed at wholesale beef and continued slaughter of grass-fed cattle. Prices of meats and of cereal and bakery prod­ ucts rose in May but still were below their peak levels of 1975, as were prices of fruits and vegetables. Prices of dairy products have in­ creased only moderately this year after having risen at annual rates of nearly 14 per cent during the latter half of 1975. Because of a reduction of supplies following the frost damage in Brazil last year, however, coffee prices have risen Meats, poultry, sharply to levels one-third above those of May and fish 1975. Enlargement of the spread between retail and farm prices of the equivalent products also con­ AH consumer tributed to the advance in food prices in 1975, foods although it added less than in 1974. This spread, which represents charges for processing and distribution, accounts for more than half of the retail value of foods produced and sold in the United States. By the fourth quarter of 1974 TABLE 1 BLS data. Centered 6-month changes at seasonally adjusted annual rates. Major wholesale price trends in meat prices came in the second and third Percentage change, seasonally adjusted annual rates quarters of 1975, as sharply higher feed costs resulting from the poor U.S. harvest in 1974 6 months ending— led livestock producers to curtail output sharply. Supplies of grain-fed beef in the spring of 1975 Item 1974 1975 1976 fell to the lowest level in 10 years and pork June Dec. June Dec. June production was the lowest in 9 years. The heavy slaughter of grass-fed cattle and of cows and Total ............................... 18.1 23.8 .5 8.6 2.3 heifers eased this supply shortage, bringing some improvement in meat prices late in the Farm and food1 ..........- 8.7 34.2 -5.6 6.5 -.3 year. Industrials ..................... 31.6 19.9 3.0 9.4 3.4 Energy items2 ........ 82.1 26.2 5.4 20.9 -5.1 The poor feed-grain harvest in 1974 was Less energy items2 26.1 18.9 2.6 7.4 4.8 followed in 1975 by record crops of corn and 'Farm products and processed foods and feeds. wheat as well as near-record soybean output. 2Estimates based on Dept, of Labor data. The resulting moderation of grain prices sur­ Source.—Department of Labor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices in Recession and Recovery 561 Wholesale price changes by stage of processing this farm-retail spread had widened by more than 30 per cent in 2 years; this rise was 6-month percentage changes responsible for most of the increase in food 80 prices during 1974. Although the increase in the average farm-retail spread was down to 8 per cent in 1975, the spreads for meats, particularly beef, and for cereal and bakery products rose to very high levels. In the first quarter of 1976 the spread for beef widened further as declines in retail prices lagged the fall in cattle prices. This was partly reversed in the second quarter as retail prices rose less than livestock prices. INDUSTRIAL COMMODITIES The impacts of the oil embargo, commodity shortages and speculation, simultaneous world­ wide achievement of rapid business expansions, and currency devaluations were dramatically reflected in annual rates of price rise above 30 per cent for industrial commodities in mid-1974. By that time, however, price series that typically lead cyclical downturns already had moderated. In particular, prices of crude materials excluding foods had begun a sharp deceleration earlier in the first half of 1974. Annual rates of price increase for such unprocessed materials dropped nearly two-thirds, from over 70 per cent in the first quarter to about 25 per cent in the third. BLS data; excluding foods. Centered 6-month changes at These eased slightly in the fourth quarter and seasonally adjusted annual rates. registered a 15V2 per cent rate of decrease in the first quarter of 1975 as swollen inventories over-all prices of crude materials were up at a were worked down at all levels of production. 9.3 per cent annual rate over the first half of Economic recovery led to increases of crude this year. material prices after the first quarter of 1975. Price changes for intermediate materials The uncontrolled portion of domestic crude oil minus foods exhibit a shorter lead and less production—about one-third of the total—rose amplitude at cycle turning points than is the case in response to fees levied on imported crude for crude materials. Intermediate materials in­ oil in February and June of 1975. Prices for clude items such as steel products, processed hides and skins and for scrap metals moved fuels, lumber and plywood, and textiles. The higher in this period as inventory liquidation timing of price changes for intermediate materi­ came to an end. als also was affected by the removal of price Increases in prices of crude materials mod­ controls in the spring of 1974. Price increases erated temporarily in the early months of 1976 for this group, which had averaged more than as domestic crude oil prices were rolled back 35 per cent at annual rates during mid-1974, by the Energy Policy and Conservation Act. decelerated sharply by the first half of 1975 and, Despite a decline in crude oil prices, however, in fact, were unchanged between the first and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin □ July 1976 second quarters. In the second half, these prices CONSUMER GOODS turned up again as economic recovery brought Increases in retail prices of consumer goods an end to inventory liquidation and permitted decelerated progressively from the third quarter firms to pass through their higher costs for of 1974 to the early months of 1976—when they material and labor. Over the first half of 1976, had fallen to an annual rate of rise of 3.5 per prices of intermediate materials were up 3.5 per cent—but, since then, they have turned up cent, annual rate. again. Wholesale prices of finished goods followed Faced by mounting inventories and weaken­ a pattern similar to that of intermediate materi­ ing demand, manufacturers and retailers trig­ als. From peak rates of inflation not so high gered the deceleration of consumer goods prices as those for crude and intermediate materials, late in 1974 by mounting extensive price rebate increases in prices of wholesale finished goods and discount programs. Apparel prices fell decelerated in late 1974 and reached a low somewhat in the following months, as did quo­ toward the middle of 1975. tations for new autos. By the summer of 1975, Beginning late in 1974, producers of con­ however, tax rebates and lowered withholding sumer finished goods (excluding foods) posted rates had strengthened consumer demand, retail many fewer and much smaller upward price inventories were already coming into better bal­ adjustments. After rising nearly one-sixth dur­ ance, and promotional programs began to be ing 1974, wholesale prices of consumer goods discontinued. Gasoline prices moved sharply other than gasoline and food were about un­ higher, and price adjustments to offset earlier changed between January and September 1975. cost increases became more common. Nonethe­ In the fall, however, and again early this year, less, by the end of 1975, prices of consumer automobile prices rose significantly, causing a goods had risen only about 6 per cent from a temporary surge for the over-all group. Nonethe­ year earlier, less than half the 1974 rise. less, the average rate of price rise for this group Fuel products, which had accounted for about has averaged around 3 V2 per cent since January a fifth of the over-all increase of consumer prices 1975; this moderation at wholesale bodes well for continued easing of price pressures on con­ sumer goods at retail. Wholesale gasoline TABLE 2 prices, which had risen nearly 25 per cent during Prices of finished goods— 1975, declined over the first 4 months of 1976 in response to lower-priced crude oil. In the past Selected nonfood items 2 months, however, wholesale gas prices have Percentage change, seasonally adjusted annual rates risen, and, at the latest reading, wholesale gas­ oline was selling at more than double its level Nov. May Nov May Nov. 1973 1974 1974 1975 1975 in the spring of 1973. Item to to to to to May Nov. May Nov. May Purchasers of producers’ finished goods have 1974 1974 1975 1975 1976 seen a progressive easing of wholesale price rises over the past 18 months. Deceleration in Consumer goods: Apparel this sector has been somewhat slower than for Wholesale ............ 11.3 7.6 -.9 2.9 5.7 Retail ..................... 9.0 8.5 .3 2.9 3.1 consumer goods—a lag of this type is typical owing mainly to long-range contractual ar­ Furniture and house hold durables rangements. Late last year, sizable price in­ Wholesale ............ 12.8 20.9 2.5 4.2 4.7 Retail ..................... 9.8 14.4 7.1 4.0 4.2 creases for trucks and for equipment needed for energy exploration and development were im­ Passenger cars Wholesale ............ 8.7 17.0 4.8 9.9 1.4 portant in the over-all rise in prices of produc­ Retail ..................... 5.8 16.3 5.4 5.6 6.7 ers’ goods. At about a 5 per cent annual rate Gasoline over the past half-year, however, the trend for Wholesale ............ 102.3 18.6 5.8 46.1 --16.7 Retail ..................... 59.3 -1.0 1.7 21.4 -9.7 these prices compares very favorably with an­ Producers’ equipment 17.2 27.9 10.0 7.3 5.2 nual rates of increase in the 25 to 30 per cent range just a year and a half ago. Source.—Department of Labor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices in Recession and Recovery 563 Consumer price behavior substantial improvement over increases in the 12 Vi per cent range late in 1974. 6-month percentage changes SERVICES Finished goods at wholesale Prices for services accelerated noticeably when Commodities at retail wage and price controls were removed early in 1974. Their rate of advance remained about 10 per cent until well into the first part of 1975, when declines in mortgage interest rates and deceleration in rates of increase of prices of Beef and veal other services provided some offset to large advances for medical care. Late in 1975, hikes Gas and motor oil in bus, subway, and airline fares, and rising auto insurance costs pushed the services index up at a faster rate. In January 1976 a jump in postal rates followed by further large increases in auto Consumer price index insurance and medical care costs gave additional impetus to the rise in service prices. Data for 1 -month changes April and May indicate a considerable modera­ tion in the rate of increase of service prices. Service prices BLS data. Centered 6-month changes at seasonally adjusted annual rates. in 1975, were destined to ease somewhat early this year. The Organization of Petroleum Ex­ porting Countries (OPEC) had raised crude oil prices by $1 per barrel in October, but in De­ cember the $2 per barrel fee on imported crude oil was removed. The resulting lower cost of crude was reflected in outright declines in pe­ BLS data. Centered 6-month changes at seasonally adjusted annual rates. troleum product prices from November through April. This decline in prices—averaging 12.5 per cent, annual rate—partly offset increases in other nonfood commodities and held the con­ LABOR COSTS AND PROFITS sumer goods inflation rate at about 3Vz per cent for the November-to-April period. New and used Compensation per hour in the private nonfarm cars recorded above-average increases in this economy rose IVi per cent over the year ending period but apparel, furniture, and home fixtures in the first quarter of 1976. This was down from remained quite moderate. Nevertheless, when the increase of almost 11 per cent recorded over petroleum product prices are excluded, the con­ the previous year. Smaller average pay increases sumer goods price index shows increases reflected the concurrent dampening of inflation, averaging nearly 5Vi per cent (annual rate) over a relatively light collective bargaining schedule, the 6 months ending in May. Although still and the high rate of unemployment. rapid by historical standards, this rate was a Wage movements alone, however, are an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 Federal Reserve Bulletin □ July 1976 imperfect measure of labor costs, as increases Moreover, the recent experience is unique in in productivity can offset their impact. Output the amount of inflation still present at the trough per hour typically rises rapidly in a recovery of the price cycle. Inflation at its low point this period due to more intensive utilization of ex­ year, when measured over a 6-month period, isting workers and equipment. The period did not go below 4.6 per cent. Except during 1975-76 was not an exception; productivity the recession of 1969-70 when inflation bot­ increased by 5.3 per cent over the year after tomed out at 3.1 per cent, all other post-Worlda recession-induced decline of 2.7 per cent over War-II troughs in prices were at zero or negative the previous year. Reflecting the slower rise of rates of change. The high rate of inflation during hourly compensation and the rebound of pro­ the past recession can be seen as a continuation ductivity, unit labor costs rose only 2.1 per cent of a tendency to have successively higher levels over the year ending in the first quarter of 1976, of inflation at the bottom of the price cycle. the most moderate increase in unit labor costs As in other recessions, the low point of retail in more than 3 years; it compares with a cyclical price increases was foreshadowed by troughs jump of nearly 14 per cent from early 1974 to that had occurred a year earlier in crude and early 1975. intermediate wholesale price increases and by As a general rule only the longer-run trend a low point in wholesale consumer goods a in unit labor costs is reflected in price behavior. quarter earlier. Service prices typically lag at Short-term movements in this series, thus, tend the trough by one to four quarters. To the extent to have their impact on corporate profits. that the current recovery follows past pat­ In the second and third quarters of 1975, terns, further deceleration of increases in service productivity recorded a sharp cyclical rebound, prices may be forthcoming. rising at an 8.7 per cent average annual rate. During recovery from economic recession, During this same period, hourly compensation prices typically accelerate over the rate of in­ grew only at a 7.8 per cent rate; thus, unit labor crease at the trough. In the past, the net increase costs declined somewhat. Since prices were still in the rate of inflation in the year following the rising, there was a rapid recovery in corporate trough, as measured by the CPI, has ranged profits. Over the two subsequent quarters, from about Vz to 2Vi per cent—with most cases growth of compensation was unchanged while falling between 1 and 2 per cent. productivity advances eased to a 2.1 per cent If the behavior of retail prices minus food annual rate. This limited the further recovery and fuel is examined, it can be seen that a trough of the profit share. Nevertheless, the before-tax in the rate of inflation appeared much earlier— profit share of national income in the first quarter that is, in mid-1975, or about the same time as had returned to the same proportion as in 1973. the business-cycle trough. Thus the delay of the trough in the total CPI for more than two addi­ tional quarters can be attributed to special movements in prices of food and fuel—first, upward movements in the second half of 1975; CYCLICAL PATTERNS then combined sharp downward movements in Consumer prices have a typical behavior pattern the first quarter of 1976. Even without the over the business cycle. The cyclical peak in influence of food and fuel, however, the level the rate of increase of prices usually precedes of inflation at about 5 per cent was still high slightly the peak in business activity. Histori­ by historical standards. cally, low points of inflation usually coincide Because of the relatively small number of with or closely follow business-cycle troughs. observations available for the post-World-War- If the trough of the recent recession is marked II period, and because over the course of 30 in the first quarter of 1975, however, then the years there have been significant institutional corresponding low point in the inflation rate changes affecting the economy—for example, does not come until nearly 12 months later. programs to deal with unemployment—cyclical Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices in Recession and Recovery 565 TABLE 3 tivity gains and are expected, therefore, to con­ tinue to exert upward pressure on prices. Consumer price changes Food prices, on the other hand, have im­ at peaks and troughs proved with larger agricultural output. More­ Percentage change, seasonally adjusted annual rates over, the outlook for food production and prices is favorable if summer and fall weather is near Rates of price change1 normal. Although the winter wheat crop of 1976 Recession or Net will be lower than originally expected because business At At 1 year change slowdown price price after of drought in the Southwest, a record acreage peak trough trough of corn was planted this spring. The latest Agriculture Department forecast anticipates a 1947-48 13.8 -4.3 -1.9 2.4 1953-54 2.1 -1.2 -.5 .7 record year for corn production and a near­ 1956-58 4.3 -.2 .8 1.0 record year for wheat. Expansion in output is 1959-61 2.3 .0 1.1 1.1 1969-70 6.7 3.1 3.5 .4 under way for beef, pork, poultry, and dairy 1973-75 12.6 24.6 products as last year’s large harvest led to im­ *Data shown are 6-month changes of the entire consumer proved profitability of feeding operations. The price index. major adverse factor in the current outlook for 2 Estimate. Source.—Department of Labor. food prices is the prolonged dry spell in Europe. If this situation should continue, grain and other comparisons such as those above should be food prices may be subjected to more upward interpreted cautiously. Also, because some of the pressure from export demand than had been events that had an important influence in the anticipated earlier. recent inflation were of a largely exogenous and As the recovery proceeds and demand temporary nature, such as the oil embargo and strengthens, firms may attempt to pass forward the unusually strong foreign demand for U.S. more of the cost increases that, in the period food, past post-recession relationships may be of weakened demand, had come out of profits. an unreliable guide to the future. Some moderation might be forthcoming in the rise of service prices, however. Some services are provided by industries that are under public CURRENT SITUATION regulation, and price increases in such industries lag earlier cost increases. Some of the recent AND OUTLOOK large increases, particularly in public trans­ Currently a rate of price increase in the neigh­ portation and auto insurance, were of this borhood of 6 per cent appears representative of catch-up nature. the underlying inflation in the economy. A con­ In general, the longer-run outlook for a return tinued rise in the price of energy relative to other to more stable prices hinges on gradual but goods can be expected to exert a fairly constant progressive moderation in cost pressures—such upward pressure on costs and prices in the as wage and energy costs, on gains in produc­ foreseeable future. Moreover, wage settlements tivity, and on an avoidance of an overheated continue to be well in excess of likely produc­ economy. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

567 Changes in Time and Savings Deposits at Commercial Banks, October 1975-January 1976 For the 3 months ending January 31, 1976, time icant surge in passbook savings deposits and and savings deposits of individuals, partner­ small-denomination (less than $100,000) time ships, and corporations (IPC) continued to grow deposits. However, at the same time, outstand­ at approximately the same moderate pace as in ing amounts of large-denomination negotiable the previous quarter. Results of the most recent and nonnegotiable certificates of deposit (CD’s) quarterly survey conducted jointly by the Fed­ declined and as a result the total of time and eral Reserve System and the Federal Deposit savings deposits grew at a 2.3 per cent quarterly Insurance Corporation (FDIC) indicate a signif- rate. Although rates paid on consumer-type time Note.—Virginia Lewis of the Board’s Division of Research and Statistics prepared this article. and savings deposits generally were maintained TABLE 1 Types of time and savings deposits of individuals, partnerships, and corporations held by insured commercial banks on survey dates, April 30, 1975-January 31, 1976 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits 1975 1976 1975 1976 (quarterly rate) Type of deposit July 31- Oct. 31- Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Total time and savings deposits.. 14,263 14,305 14,378 14,369 364,736 375,731 383,485 392,385 2.1 2.3 Savings......................................... 14,052 14,088 14,214 14,206 144,250 151,965 154,282 165,470 1.5 7.3 Time deposits in denomina­ tions of less than $100,000—Total............... 14,148 14,194 14,280 14,266 123,550 128,771 131,580 136,953 2.2 4.1 Accounts with original maturity of— Less than 1 year................ 13,570 13,587 13,719 13,699 36,329 37,443 37,262 38,424 -.5 3.1 1 up to 2l/i years............... 13,851 13,858 14,003 14,024 36,203 35,872 35,397 36,006 -1.3 1.7 2 Vi up to 4 years............... 12,573 12,592 12,659 12,732 18,568 19,500 20,318 20,453 4.2 .7 4 up to 6 years................... 11,844 12,047 12,188 12,296 30,027 32,658 34,553 36,773 5.8 6.4 6 years and over: Negotiable deposits . . . 3,860 4,371 4,623 5,230 1,157 1,464 1,664 2,150 13.7 29.2 Nonnegotiable deposits. 1,885 2,098 2,296 2,534 1,266 1,834 2,386 3,147 30.1 31.9 All maturities: Open ac­ counts—Passbook or statement form 2........... 3,902 3,866 3,921 3,898 30,714 31,125 31,820 32,622 2.2 2.5 Time deposits in denominations of $100,000 or more.......... 8,363 8,442 8,699 8,684 91,378 89,008 92,241 85,049 3.6 -7.8 Negotiable CD’s................... 3,969 3,976 3,960 3,808 64,298 62,830 64,895 58,840 3.3 -9.3 Nonnegotiable CD’s and open account................. 4,929 4,943 5,230 5,357 27,080 26,178 27,346 26,209 4.5 -4.2 Christmas savings and other special funds................... 9,044 9,039 8,226 8,826 5,558 5,987 5,382 4,913 -10.1 -8.7 1 Less than .05 per cent. Note.—Data were compiled jointly by the Board of Governors of 2 Includes time deposits, open account, issued in passbook, state­ the Federal Reserve System and the Federal Deposit Insurance ment, or other forms that are direct alternatives for regular savings Corporation. The information was reported by a probability sample accounts. Most of these are believed to be in accounts totaling less of all insured commercial banks. than $100,000. The figures shown on this line are included above in Some deposit categories include a small amount of deposits out­ the appropriate maturity category. standing in a relatively few banks that no longer issue these types of deposits and are not included in the number of issuing banks. Dollar amounts may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin □ July 1976 TABLE 2 Small-denomination time and savings deposits, IPC, held by insured commercial banks on October 31, 1975, and January 31, 1976, by type of deposit, by most common rate paid on new deposits in each category, and by size of bank Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) Deposit group, All banks All banks and distribution of deposits by most Less than 100 100 and over Less than 100 100 and over common rate Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Jan. 31 Oct. 31 Number of banks, or percentage distribution Amount of deposits (in millions of dollars), or percentage distribution Savings deposits: Issuing banks................... 14,206 14,214 13,254 13,354 952 860 165,470 154,282 65,208 63,067 100,262 91,215 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 4.00 or less............... 5.9 5.9 5.8 5.9 6.1 6.7 4.0 4.6 3.3 3.4 4.6 5.2 4.01-4.50.................. 5.6 6.3 5.2 6.0 11.6 10.7 9.1 10.2 6.1 7.8 11 .0 12.0 4.51-5.00................... 88.5 87.8 89.0 88.1 82.3 82.6 86.9 85.2 90.6 88.8 84.4 82.8 Memo: paying ceiling rate 2.......................... 88.5 87.8 88.9 88.1 82.1 82.2 86.6 85.0 90.4 88.8 84.1 82.4 Time deposits in denomina­ tions of less than $100,000: Maturing in— Less than 1 year: Issuing banks................... 13,699 13,719 12,748 12,858 951 861 38,424 37,262 17,129 17,310 21,295 19,952 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less............... 7.7 6.0 7.8 5.9 6.1 6.5 6.4 8.5 5.3 5.1 7.3 11.5 5.01-5.50................... 92.3 94.0 92.2 94.1 93.9 93.5 93.6 91 .5 94.7 94.9 92.7 88.5 Memo: paying ceiling rate2...................... 91.7 93.2 91.5 93.3 93.2 92.4 93.0 90.7 94.1 94.0 92.0 87.7 1 up to 2Vi years: Issuing banks................... 14,024 14,003 13,083 13,150 941 853 36,006 35,397 23,854 23,742 12,152 11,655 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less............... 1 .7 2.2 1.7 2.2 1.7 1 .9 1 .7 2.1 1 .0 1 .6 3.0 3.1 5.51-6.00................. 98.3 97.8 98.3 97.8 98.3 98.1 98.3 97.9 99.0 98.4 97.0 96.9 Memo: paying ceiling 97.2 96.5 97.2 96.5 96.6 96.4 97.1 96.8 98.0 97.5 95.1 95.3 2Yz up to 4 years: Issuing banks................... 12,732 12,659 11,815 11,830 917 829 20,453 20,318 12,357 12,489 8,096 7,829 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less............... O) 0) 0) .1 O) 0) 0) (!) (!) (!) 0) 5.51-6.00................... (V.i 1.8 1.0 1.8 1 .6 1 .7 1.1 1 .4 .4 .8 2.1 2.2 6.01-6.50................... 98.9 98.2 99.0 98.2 98.3 98.3 98.9 98.6 99.6 99.2 97.9 97.8 Memo: paying ceiling rate2...................... 98.4 97.7 98.5 97.7 97.7 97.7 98.4 97.8 98.8 98.2 97.7 97.0 4 up to 6 years: Issuing banks................... 12,296 12,188 11,382 11,360 914 828 36,773 34,553 18,076 17,093 18,697 17,460 Distribution: Total.............................. 100 100 100 100 100 100 100 100 100 100 100 100 6.50 or less............... 1.1 1.8 1.1 1 .8 1 .7 2.0 .3 1.1 .3 .4 .5 1 .7 6.51-7.00................... 15.1 16.6 15.5 17.0 10.0 10.2 10.0 10.3 11.3 13.0 8.7 7.7 7.01-7.25................... 83.8 81.6 83.4 81.2 88.3 87.8 89.7 88.6 88.4 86.6 90.8 90.6 Memo: paying ceiling rate2...................... 83.5 82.7 83.1 82.5 87.9 86.4 89.3 89.8 87.8 89.0 90.7 92.2 6 years and over— Negotiable deposits: 5,230 4,623 4,923 4,362 307 261 2,150 1 ,664 1,308 1,019 842 645 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less............... .3 .4 .2 .4 1 .0 1 .2 .4 1.1 .6 1 .7 .1 .2 6.01-7.00................... 1 .0 1.0 .9 .9 2.7 2.4 1.6 1.5 2.1 1.2 .6 1.9 7.01-7.50................... 98.7 98.6 98.9 98.7 96.3 96.4 98.0 97.4 97.3 97.1 99.3 97.9 Memo: paying ceiling rate2...................... 95.9 93.9 96.1 94.0 92.5 92.3 92.0 89.7 96.0 95.0 85.7 81.3 6 years and over—Non­ negotiable deposits: Issuing banks................... 2,534 2,296 2,011 1,837 523 459 3,147 2,386 776 609 2,371 1,777 Distribution: Total............................. 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less............... 1.2 .5 1.4 .5 .6 .5 .1 0) .3 0) .1 0) 6.01-7.00................... .7 1.9 .4 2.0 1.6 1.3 4.3 4.8 (!) 2.2 5.6 5.7 7.01-7.50.................. 98.1 97.6 98.2 97.5 97.8 98.2 95.6 95.2 99.7 97.8 94.3 94.3 Memo: paying ceiling rate2...................... 96.0 94.0 96.3 93.7 94.8 95.5 92.3 93.3 94.6 93.7 91 .5 93.1 For notes, see p. 573. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 569 at the regulatory ceiling levels, yields on large - SAVINGS DEPOSITS denomination CD’s tended to follow short-term Inflows of savings deposits were unusually money market rates and declined throughout the strong between October and January. Such de­ 3-month period. Furthermore, the over-all posits rose at a 7.3 per cent quarterly rate to average rate paid on passbook savings and $165.5 billion, not seasonally adjusted—the small-denomination time deposits at the end of largest increase for any 3-month period since January remained at the same level as in Oc­ the start of the survey in 1968. During the tober—the exceptional growth in lower-rate, quarter, many money market rates declined to shorter-maturity accounts balanced the expan­ levels below the maximum allowable interest sion in higher-interest, longer-maturity deposits. rate payable on savings accounts, and the TABLE 3 Average of most common interest rates paid on various categories of time and savings deposits, IPC, at insured commercial banks on January 31, 1976 Time deposits in denominations of less than $100,000 Savings and Maturing in— Bank location and smallsize of bank denom­ Savings (total deposits in ination 6 years and over— millions of dollars) time Total deposits Less than 1 up to 2 Vi up to 4 up to 1 year 2 Vi years 4 years 6 years Negotiable Nonnego­ deposits tiable deposits All banks: All size groups................................. 5.54 4.91 6.31 5.47 5.99 6.49 7.22 7.46 7.46 Less than 10................................. 5.76 4.90 6.20 5.46 5.99 6.50 7.20 7.50 7.50 10-50............................................. 5.67 4.93 6.31 5.47 5.99 6.50 7.22 7.49 7.48 50-100........................................... 5.57 4.95 6.34 5.47 5.99 6.50 7.23 7.39 7.50 100-500......................................... 5.49 4.89 6.31 5.47 5.99 6.50 7.22 7.48 7.48 500 and over................................ 5.42 4.90 6.31 5.46 5.98 6.48 7.23 7.43 7.44 Banks in— Selected large SMSA’s1: All size groups............................ 5.44 4.91 6.31 5.46 5.98 6.49 7.22 7.43 7.45 Less than 10............................ 5.59 4.90 6.25 5.46 5.99 6.49 7.20 7.50 7.50 10-50......................................... 5.50 4.93 6.33 5.48 5.99 6.49 7.21 7.49 7.49 50-100....................................... 5.50 4.94 6.33 5.45 5.98 6.50 7.23 7.30 7.49 100-500..................................... 5.45 4.90 6.28 5.47 5.98 6.50 7.21 7.50 7.48 500 and over........................... 5.41 4.91 6.32 5.45 5.97 6.48 7.23 7.42 7.43 All other SMSA’s: All size groups............................ 5.55 4.88 6.32 5.48 5.99 6.50 7.23 7.49 7.49 Less than 10............................ 5.67 4.85 6.31 5.47 5.99 6.50 7.18 7.50 7.50 10-50......................................... 5.66 4.91 6.34 5.48 5.99 6.50 7.23 7.49 7.45 50-100. . . .............................. 5.58 4.93 6.33 5.47 6.00 6.50 7.22 7.50 7.49 100-500..................................... 5.50 4.88 6.32 5.48 5.99 6.50 7.23 7.49 7.50 500 and over........................... 5.46 4.84 6.27 5.49 5.98 6.50 7.24 7.50 7.50 Banks outside SMSA’s: All size groups................................ 5.73 4.93 6.29 5.47 5.99 6.50 7.22 7.49 7.48 Less than 10................................ 5.78 4.91 6.19 5.46 5.99 6.50 7.20 7.50 7.50 10-50............................................. 5.75 4.94 6.29 5.47 6.00 6.50 7.22 7.50 7.49 50-100........................................... 5.71 4.99 6.38 5.50 6.00 6.50 7.23 7.50 7.50 100-500......................................... 5.60 4.88 6.36 5.45 5.99 6.49 7.20 7.43 7.42 500 and over................................ 5.78 5.00 6.42 5.50 6.00 6.50 7.25 7.50 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of popula­ tion in the 1970 Census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-Troy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland N orfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D.C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Bernardino-Riverside Ft. Worth N ash ville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Y oungsto wn-W arren Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin □ July 1976 proportion of banks offering the 5 per cent established in July 1973. Presumably, the fa­ ceiling edged up slightly to almost 89 per cent. vorable yields on such deposits relative to Thus, savings deposits represented an attractive money market instruments had begun to draw short-term investment for funds, especially funds from other investments; likewise, inflows since most banks pay interest from the day of to time deposits with an original maturity of less deposit to the day of withdrawal. than 1 year, most of which are thought to be Further stimulus to the growth of savings 90-day accounts, are probably viewed by some deposits was provided by the change in Federal customers as close substitutes for savings de­ Reserve and FDIC regulations, effective No­ posits. vember 10, 1975, that permitted the holding of such deposits at commercial banks by corpora­ tions, partnerships, and other profit-making or­ L ARGE-DEN OMIN ATION ganizations up to $150,000 per depositor. At TIME DEPOSITS the approximately 320 large commercial banks for which a breakdown of savings data into IPC, Between October and January the volume of business accounts, and government deposits is large-denomination time deposits, after having available, about one-fourth of the inflows into expanded slightly during the previous survey savings accounts during the survey period was period, resumed the steady decline observed in from business depositors. According to a Fed­ the first half of 1975. The willingness of com­ eral Reserve survey conducted on January 7, mercial banks to allow large CD’s to run off 1976, the funds deposited into these accounts indicates that the near-record growth in conwere, for the most part, transferred from de­ sumer-type time and savings inflows provided mand balances. adequate funds to satisfy still modest loan de­ mand—and at relatively low cost. Rates paid on large-denomination time deposits by banks SM ALL-DEN OMIN ATION competing for such funds, having leveled off at the end of October, declined in January in TIME DEPOSITS line with short-term market rates of interest. The outstanding volume of small-denomination More than 50 per cent of the outstanding dollar time deposits expanded at a quarterly rate of volume of these issues was held by banks offer­ 4.1 per cent over the October-January interval. ing a rate of 5 per cent, whereas in October The most rapid rates of increase occurred in the bulk of the CD’s issued were at banks paying deposits with maturities greater than 4 years— 6.5 per cent. From November to early De­ due, in part, to the interest rate structure of cember, many regional banks were able to at­ Regulation Q, which allows higher rates to be tract large CD deposits at rates lower than those paid on longer maturity deposits. However, the offered by large New York City banks—ap­ volume of time deposits maturing in less than parently the result of apprehension in money 2l/i years also showed unusual strength—those market centers about purchasing the large-de­ in the 1- to 2%-year range rose for the first nomination time deposits of these banks in the 3-month period since this maturity category was aftermath of the city’s financial crisis. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 571 APPENDIX TABLES 1. Savings deposits Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.00 Memo: 4.00 Memo: or 4.50 5.00 ceiling or 4.50 5.00 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS 4.11 banks................................................................... 14,206 829 802 12,575 12,566 165,470 6,715 15,037 143,718 143,262 Size of bank (total deposits in millions of dollars): Less than 10......................................................... 4,579 474 101 4,004 4,004 5,635 437 116 5,082 5,082 10-50...................................................................... 7,555 268 527 6,760 6,753 41,343 1,308 2,858 37,177 37,058 50-100.................................................................... 1,121 29 64 1,028 1,028 18,230 426 1,014 16,790 16,790 100-500................................................................. 772 45 86 641 639 36,176 1,866 3,915 30,395 30,058 500 and over........................................................ 179 13 24 142 142 64,086 2,678 7,134 54,274 54,274 2. Time deposits, IPC, in denominations of less than $100,000— Maturing in less than 1 year Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 Memo: 5.00 Memo: or 5.50 ceiling or 5.50 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS AH banks...................................................................... 13,699 1,050 12,649 12,556 38,424 2,470 35,954 35,720 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 4,340 414 3,926 3,919 1,646 123 1,523 1,522 10-50....................................................................... 7,299 513 6,786 6,710 11,114 539 10,575 10,515 50-100..................................................................... 1,109 65 1,044 1,040 4,369 253 4,116 4,082 100-500................................................................... 772 40 732 727 9,036 506 8,530 (2) 500 and over.......................................................... 179 18 161 160 12,259 1,049 11,210 (2) 3. Time deposits, IPC, in denominations of less than $100,000— Maturing in 1 up to 2^ years Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.50 Memo: 5.50 Memo: or 6.00 ceiling or 6.00 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS All banks..................................................................... 14,024 234 13,790 13,630 36,006 607 35,399 34,948 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 4,496 82 4,414 4,390 5,488 79 5,409 5,360 10-50....................................................................... 7,471 124 7,347 7,242 15,293 127 15,166 15,036 50-100..................................................................... 1,116 12 1,104 1,089 3,073 38 3,035 2,991 100-500................................................................... 764 12 752 742 5,009 73 4,936 4,830 500 and over.......................................................... 177 4 173 167 7,143 290 6,853 6,731 For notes to Appendix Tables 1-8, see p. 573. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin □ July 1976 4. Time deposits, IPC, in denominations of less than $100,000— Maturing in 2\ years up to 4 years Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 Memo: 6.00 Memo: or 6.50 ceiling or 6.50 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS 12,732 137 12,595 12,532 20,453 218 20,235 20,120 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 3,687 7 3,680 3,654 1,804 2 1,802 1,783 10-50....................................................................... 7,045 78 6,967 6,939 8,435 41 8,394 8,321 50-100..................................................................... 1,084 36 1,048 1,044 2,118 4 2,114 2,108 100-500.................................................................... 749 13 736 732 3,168 17 3,151 (2) 167 3 164 163 4,928 154 4,774 (2) 5. Time deposits, IPC, in denominations of less than $100,000— Maturing in 4 years up to 6 years Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 Memo: 6.50 Memo: or 7.00 7.25 ceiling or 7.00 7.25 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS 12,296 140 1,854 10,302 10,266 36,773 132 3,672 32,969 32,842 Size of bank (total deposits in millions of dollars): Less than 10........................................................ 3,473 23 802 2,648 2,648 1,676 6 321 1,349 1,349 10-50..................................................................... 6,850 77 871 5,902 5,874 11,982 26 1,357 10,599 10,505 50-100................................................................... 1,058 25 89 944 940 4,418 10 373 4,035 4,024 100-500................................................................. 743 12 76 655 651 7,910 80 645 7,185 7,163 500 and over........................................................ 172 3 16 153 153 10,787 10 976 9,801 9,801 6. Time deposits, IPC, in denominations of less than $100,000— Maturing in 6 years or more—negotiable and nonnegotiable deposits Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.50 Memo: 6.50 Memo: or 7.00 7.50 ceiling or 7.00 7.50 ceiling less rate3 less rate3 NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................................................... 7,764 65 50 7,649 7,449 5,297 84 97 5,116 4,881 Size of bank (total deposits in millions of dollars): Less than 10......................................................... 1,639 4 28 1,607 1,572 142 O) 1 141 141 10-50..................................................................... 4,474 39 9 4,426 4,313 1,348 3 O) 1,345 1,295 50-100................................................................... ' 822 10 3 809 784 594 34 O) 560 553 100-500................................................................. 659 7 9 643 623 1,218 (2) (2) 1,207 1,162 500 and over........................................................ 170 5 1 164 157 1,995 (2) (2) 1,863 1,730 For notes to Appendix Tables 1-8, see p. 573. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits 573 7. Negotiable CD’s, IPC, in denominations of $100,000 or more Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 8.00 5.00 8.00 or 5.50 6.00 6.50 7.00 7.50 or or 5.50 6.00 6.50 7.00 7.50 or less more less more NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................... 3,807 573 512 1,111 490 559 360 20258,84029,363 7,347 6,894 9,341 1,362 4,099 434 Size of bank (total de­ posits in millions of dollars): Less than 10............... 681 25 89 231 118 125 66 27 183 8 17 65 42 41 6 4 10-50............................ 2,221 277 255 681 236 354 272 146 2,555 454 279 734 366 390 181 151 50-100.......................... 443 103 52 119 72 63 8 26 1,613 369 185 357 185 253 34 230 100-500....................... 302 101 80 59 39 11 9 3 5,202 1,637 1,574 683 866 231 162 49 500 and over............... 160 67 36 21 25 6 5 49,28726,895 5,292 5,055 7,882 447 3,716 8. Nonnegotiable CD’s and open account deposits, IPC, in denominations of $100,000 or more Most common interest rates paid by insured commercial banks on new deposits, January 31, 1976 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 5.00 8.00 5.00 8.00 or 5.50 6.00 6.50 7.00 7.50 or or 5.50 6.00 6.50 7.00 7.50 or less more less more NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................... 5,357 794 1,139 1,564 723 547 375 21526,209 6,877 6,046 8,354 3,402 754 515 261 Size of bank (total de­ posits in millions of dollars): Less then 10............... 577 79 70 254 47 58 69 184 10 17 63 14 70 11 10-50............................ 3,342 373 631 915 549 409 269 196 3,405 391 481 887 794 401 296 154 50-100.......................... 698 140 180 235 64 60 11 8 2,571 654 663 654 379 188 13 20 100-500........................ 589 161 211 131 47 15 14 10 6,592 1,659 2,129 1,623 905 80 (2) (2) 500 and over............... 151 41 47 29 16 5 12 113,457 4,163 2,756 5,127 1,310 15 (2) (2) NOTES TO APPENDIX TABLES 1-8: 1 Less than $500,000. Figures exclude banks that reported no interest rate paid and 2 Omitted to avoid individual bank disclosure. that held no deposits on the survey dates, and they also exclude 3 See p. A-8 for maximum interest rates payable on time and savings a few banks that had discontinued issuing these instruments but deposits at the time of each survey. Note that the ceiling rate is still had some deposits outstanding on the survey date. Dollar amounts included in the rate interval in the column to the left. may not add to totals because of rounding. In the headings of these tables under “Most common rate paid Note.—Data were compiled from information reported by a (per cent)” the rates shown are those being paid by nearly all reporting probability sample of member and insured nonmember commercial banks. However, for the relatively few banks that reported a rate in banks. The data were expanded to provide universe estimates. between those shown, the bank was included in the next higher rate NOTES TO TABLE 2: 1 Less than .05 per cent. deposit inflows during the 30-day period. If the rate changed during 2 See p. A-8 for maximum interest rates payable on time and that period, the rate reported was the rate prevailing on the largest savings deposits at the time of each survey. Note that the ceiling rate dollar volume of inflows from the time of the last rate change to the is included in rate interval in the line above. survey date. While rate ranges of *4 or Vi of a percentage point are shown in Note.—The most common interest rate for each instrument refers this and other tables, the most common rate reported by most banks to the basic stated rate per annum (before compounding) in effect on was the top rate in the range; for example, 4.00, 4.50, etc. Some the survey date that was generating the largest dollar volume of de­ deposit categories exclude a small amount of deposits outstanding in posit inflows. If the posted rates were unchanged during the 30-day a relatively few banks that no longer issue these types of deposits and period just preceding the survey date, the rate reported as the most are not included in the number of issuing banks. common rate was the rate in effect on the largest dollar volume of Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Statements to Congress Statement by Philip E. Coldwell, Member, operations of financial institutions; and (6) pro­ Board of Governors of the Federal Reserve vision of necessary liquidity to those institu­ System, before the Joint Committee on Defense tions. Production, /wne 28, 1976. These policies and plans are not directed at the areas of the country that would be devastated Madam Chairwoman, I am happy to have this by an exchange of high-yield nuclear weapons. opportunity to describe to the Joint Committee Rather, they are aimed at the undamaged or the responsibilities of the Federal Reserve Sys­ lightly damaged areas where national survival tem in the emergency preparedness area and our might depend upon maintaining economic mo­ plans to carry out those responsibilities if nec­ mentum and organized economic activity. This essary. is a point that is often overlooked by those who, Federal Reserve System involvement in con­ quite understandably, are preoccupied by the tingency planning for an attack on the United terrible problems that would confront us in the States began in the early 1950’s. It was formal­ damaged areas. ized in 1956, when the Office of Defense Mobi­ I should point out also that these plans are lization issued a Defense Mobilization Order to based on a general war—an 4 4all out” nuclear the Board. That order was superseded by Presi­ exchange. However, we have examined the dential Executive Orders, the most recent of problems that would be generated by a limited which is Executive Order 11490 dated June 11, exchange such as the one being examined by 1976. this committee. We have concluded that the The Federal Preparedness Agency has desig­ same plans would apply, the difference being nated the Federal Reserve a Category A agency, one of magnitude. The plans would be easier which means that we have essential functions to implement since presumably a larger number that must be continued during an attack and in of our normal operating facilities would survive an immediate post-attack period. The Executive and problems of communication and control Order requires, among other things, that such would be less difficult. agencies maintain alternate headquarters and The Board and the Reserve Banks have or­ sites for the storage of duplicate essential ganized themselves to meet the responsibilities records. outlined briefly above by establishing alternate More specifically, the Executive Order headquarters and duplicate record storage sites charges the heads of the Federal bank supervi­ in nontarget areas. In the Board’s case, we have sory agencies, including the Board of Governors been able to combine these functions at a facility of the Federal Reserve System, with respon­ that also operates our vital communications sibility for developing emergency plans, pro­ system on a day-to-day basis. grams, and regulations to cope with the potential Lists of officials and staff who would relocate economic effects of a mobilization or an attack. to these sites when instructed to do so have been Functions that the Order specifies must be car­ established and are kept current. Succession lists ried on include: (1) provision and regulation of are maintained on a current basis. Delegations money and credit; (2) acquisition, decentraliza­ of authority, the use of which would be trig­ tion, and distribution of currency ; (3) collection gered by an attack, have been made to Reserve of checks; (4) fiscal agency and foreign opera­ Banks that might be out of communication with tions; (5) provision for the continued or resumed the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 575 The problem of insuring a currency supply financial agencies re-evaluated the post-attack is made difficult because the only production financial policies and recommended no changes. source of Federal Reserve notes is the Bureau However, the basic assumptions underlying of Engraving and Printing, here in Washington, these plans, particularly those relating to na­ and because almost all of the Reserve Banks tional survival and continuity of Government, and branches are in potential target areas. We have not been revised since 1966. In that period have established an inventory of the various the political and military situations have denominations of Federal Reserve notes at our changed materially. For that reason, as we in­ facility at Culpeper, Virginia, to provide a formed the Joint Committee in the last Annual cushion until the Bureau could get back into Report, Chairman Burns has asked that these production. assumptions be re-examined. We understand Since we must assume that high-speed equip­ that General Bray is chairing an interagency ment at normal operating facilities would not steering group that is engaged in such a study. be available, plans for maintaining the check In the meantime, we plan to maintain emer­ collection and currency distribution systems in­ gency preparedness programs at the Board and volve a high degree of decentralization. Check- at the Reserve Banks at their present levels until agent and cash-agent banks, each serving a we are advised differently by the administration small geographic area, have agreed to perform or by the Congress. these functions for the Federal Reserve in an In conclusion, Madam Chairwoman, you emergency. Each agent bank has been furnished have asked about the need for such emergency instructions and the necessary forms. preparedness plans. In my opinion the national Most importantly, we have informed the emergency plans on the civil side of Govern­ banks and other financial institutions about these ment are a necessary complement to the defense plans in detail by distributing to each copies of efforts on the military side. As long as there emergency regulations, operating circulars, and are such emergency plans, and in this disturbed operating letters. and unsettled world they seem to be a require­ These plans and policies have been tested, ment, the plans and programs I have outlined to the extent that they could be, during national for the Federal Reserve are a fundamental fea­ tests and exercises held over the past 20 years. ture underlying all other plans since the others In 1974 an interagency committee of the Federal assume a functioning monetary system. □ Statement by Arthur F. Burns, Chairman, As is typical of a period of cyclical expan­ Board of Governors of the Federal Reserve sion, the rebound of activity has been especially System, before the Joint Economic Committee vigorous in the industrial sector. New data re­ of the U.S. Congress, June 30, 1976. leased this Monday [June 28] by the Federal Reserve Board indicate that industrial produc­ I am pleased to meet once again with the Joint tion, that is, the output of our factories, mines, Economic Committee to present the views of and power plants, has risen since March of last the Board of Governors of the Federal Reserve year at an annual rate of 13% per cent—a System on the condition of our national econ­ stronger advance than was indicated by our omy. earlier reports. The economic expansion now under way is The expansion of economic activity in the entering its second year. Business activity began various service trades as well as the industrial to pick up in the spring of 1975 and has gathered sector has led to material strengthening in the momentum since then. In the quarter now end­ demand for labor. Total employment across the ing, the physical volume of total production will Nation has increased by more than 3Vi million be about IVi per cent higher than a year ago. from its low point in March 1975. This gain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin □ July 1976 has been accompanied by significant lengthen­ judgment, a transitory phenomenon. After a ing of the average workweek—especially in rapid advance from last December through this manufacturing, where the amount of overtime March, total retail sales remained unchanged in is back to the highest level since the summer April and then declined somewhat in May. of 1974. Meanwhile, long-term unemployment Temporary pauses of this kind are not uncom­ has sharply diminished, and the over-all unem­ mon during periods of cyclical expansion. ployment rate has come down from about 9 per Members of this committee may remember that cent a year ago to l lA per cent presently. the lull in consumer buying last autumn was The rate of utilization of our industrial plant soon followed by a renewed surge of retail sales has also moved up with the expansion of busi­ during the winter months. There is good reason ness activity. In the materials-producing indus­ to believe that the recent slowdown will also tries, only about 70 per cent of available plant be temporary. The basic determinants of con­ capacity was effectively used during the second sumer spending are clearly favorable: real in­ quarter of 1975. At present, the rate of capacity comes of families are increasing, labor market use has reached 80 per cent in these industries. conditions are improving, and so too is the Where the recovery of production has been liquidity position of consumers. I would there­ especially rapid, as in the paper industry and fore expect consumer spending to continue some branches of the textiles industry, the utili­ moving upward. In fact, incoming sales data zation of capacity already exceeds 90 per cent. for the past 3 or 4 weeks on automobiles and The intensity of the economic recovery to most other branches of retail trade suggest that date has been close to the average for cyclical a resumption of the upward trend is already upswings during the period since World War under way. II. Moreover, the pattern of the current expan­ A further rise of inventory investment should sion has been similar in many respects to that also add strength to general business activity. of its predecessors. In many nondurable goods industries, invento­ Consumers led the way out of recession last ries have now been restored to levels that are spring, and they have been a major source of adequate to meet current rates of sales. In the stimulus to economic expansion since then. As durable goods trades, on the other hand, re­ confidence improved, they became more active newed accumulation of inventories is just getting buyers, and the rise in consumer spending out­ under way. New orders for durable goods are stripped by a considerable margin the increase now rising vigorously, and rebuilding of stocks in disposable income. should be a stimulus to production in the months The advance of consumer buying, which ahead. began in markets for apparel and other non­ A larger, and more basic, source of stimulus durables, soon spread to durable goods. During to economic activity can be expected from in­ the quarter now ending, consumers spent ap­ creasing business outlays for new plants, ma­ proximately 13 per cent of their after-tax in­ chinery, and other equipment. Business capital comes on durable goods—compared with 11 Vi spending typically joins the recovery process per cent a year earlier. The automobile market later than other sectors of the economy. But as has been especially active. In recent months, utilization of capacity increases and profits im­ unit sales of domestic models have run about prove during the course of an expansion, busi­ 50 per cent above their depressed level in April ness firms typically move ahead more aggres­ 1975. sively with their capital investment programs. As purchases of big ticket items rose, con­ Although such a development has been some­ sumers incurred new indebtedness. However, what delayed in the present instance, the tradi­ the rate of increase in consumer instalment debt tional pattern is again emerging. has thus far remained moderate in relation to Thus, production of business equipment has consumer incomes. been rising since November 1975 at an annual The hesitation that developed recently in the rate of 11 per cent. Other indicators of business pace of consumer spending is, in the Board’s capital spending are also pointing strongly up­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 577 ward. New orders for nondefense capital goods expansion of our economy continues to cumu­ have risen in each of the past 5 months and late. But the outlook for our export trades in May were 16 per cent above their level at is also brightening. Although economic recov­ the end of 1975. Also, the most recent surveys ery in other industrial countries began later than of business anticipations indicate some further in our own, the pace of economic expansion strengthening of plans for capital expenditures in Western Europe and Japan has of late begun this year. to gather momentum. Material strengthening of In the other major sector of private long-term demands for American machinery and other investment—that is, homebuilding—the revival products is therefore to be expected. of activity has contributed to economic expan­ During the course of the current expansion, sion since the spring of 1975. New housing several milestones have already been passed on starts last month were almost 50 per cent above the road to restoring our Nation’s economic their trough in early 1975, and unemployment vitality. By early this year, the number of per­ among construction workers has fallen by a third sons holding jobs had already regained the pre­ from its cyclical peak. recession level, and total employment has since The rebound in residential construction has then moved above the previous peak by nearly been largely confined to single-family homes. IV2 million. The average level of real disposable Construction of apartment houses has been held income per person rose to an all-time high in down by several factors—previous overbuild­ the first quarter of 1976, and the real value of ing, high construction costs, and lagging rents. the gross national product now also exceeds the In fact, inflated costs of construction, mainte­ previous peak level reached in the final quarter nance, and operation are now a major limiting of 1973. factor for all branches of residential con­ Our country still has some distance to go, struction. It is reasonable, nevertheless, to an­ however, to regain full prosperity. It is therefore ticipate a gradual further advance in home- vital to maintain conditions that will foster con­ building activity during the second half of this tinuation of a good rate of economic expansion. year. Residential building permits have been Fortunately, the recovery process has thus far rising rather steadily and last month reached remained balanced and orderly. There have been their highest level in 2 years. Mortgage credit few signs of the speculative excesses that is in ample supply in practically all parts of the sometimes develop in the course of a businesscountry. Furthermore, while the construction of cycle expansion and inevitably cause trouble apartment houses has remained at a depressed later on. Our Nation has made notable progress level, vacancy rates for rental units have de­ in reducing the rate of inflation. The rise in clined noticeably. consumer prices came down from 12 per cent Our net trade balance with other countries in 1974 to 7 per cent in 1975, and to an annual may also show some improvement in the months rate of 4 per cent in the first 5 months of this ahead. During the past year of economic recov­ year. This recent further moderation in the rate ery, our foreign trade balance declined. The of inflation, however, stems in large part from physical volume of imports—which fell off special factors that for a time reduced the prices sharply during the recession—began to rise of food and fuel. When these erratic items are again during the third quarter of last year, re­ excluded, it appears that the underlying annual flecting the enlarged demand for petroleum, rate of inflation has not diminished since midindustrial supplies, and other goods needed to 1975 and that it may still be about 6 or 7 per support the rise of industrial production or to cent. meet consumer preferences. Our merchandise Any such rate of inflation constitutes a serious exports, however, have yet to regain the upward threat to the economy, and elimination of our trend that was interrupted by worldwide reces­ disease of inflation must therefore remain a sion. major objective of public policy. At the same Imports of industrial supplies and consumer time, it is important to recognize that we have goods will probably move up further as the managed during the past year to avoid a fresh Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 Federal Reserve Bulletin □ July 1976 outburst of inflation—a development that would There is a striking contrast between the have quickly eroded the purchasing power of movement of interest rates during the current wages and savings, created strains in financial expansion and their behavior in past cyclical markets, undermined confidence, and sapped upswings. Short-term interest rates normally the strength of the forces of economic expan­ begin to move up at about the same time as sion. the upturn in general business activity, although Let me turn now to the role of monetary the extent of rise varies from one cycle to policy in these developments. The Federal Re­ another. Upward pressures on short-term inter­ serve was urged repeatedly during the past year est rates might well have been expected during to pursue a more expansionist policy in order the past year, in view of the vigorous rebound to speed the return to full employment. Concern of economic activity, the continuing advance of was expressed by some economists, as well as the price level, and the record volume of Treas­ by some members of the Congress, that the rates ury borrowing. However, after some run-up in of monetary growth we were seeking would the summer months of 1975, short-term rates prove inadequate to finance a good economic turned down again last fall, and long-term rates expansion. Interest rates would move up also moved lower. By April of this year, interest sharply, it was argued, as the demand for money rates on most short-term market securities had and credit rose with increased aggregate spend­ fallen to their lowest level since late 1972, while ing, and shortages of money and credit might yields on high-grade new issues of corporations soon choke off the recovery. declined to their lowest level since early 1974. We at the Federal Reserve did not share this The main cause of the unusual behavior of pessimistic view. We knew from experience, interest rates during the past year was undoubt­ first, that the turnover of existing money bal­ edly the lessening of inflationary fears and the ances is apt to increase rapidly with the return consequent reduction in the inflation premium of confidence; second, that rapid expansion of that got built into interest rates—particularly, money and credit is apt to intensify inflationary the long-term rates. expectations and soon sow the seeds of another The financial climate that has prevailed during recession. Consequently, we resisted advice to the past year of economic recovery has permit­ open the tap and let money flow out in greater ted lenders and borrowers alike to strengthen abundance. their financial condition. For example, the li­ The monetary policy pursued by the Federal quidity position of savings banks and of savings Reserve fostered a moderate rate of monetary and loan associations has improved markedly expansion. During the year ending this quarter, over the past year. Moreover, the flow of indi­ Mu the narrowly defined money stock, which vidual savings to the thrift institutions is still includes only currency and demand deposits, ample. Deposits at savings and loan associa­ grew about 5lA per cent. A more broadly de­ tions—the leading suppliers of home mortgage fined money stock, M2, which includes also credit—rose at an annual rate of 14 per cent savings and time deposits other than large cer­ in May, and the outstanding mortgage loan tificates of deposit (CD’s) at commercial banks, commitments of these institutions increased rose by 10 per cent. further—to more than $20 billion, the highest These increases in the stock of money were level in 3 years. sufficient to finance a large increase in the phys­ Commercial banks have also rebuilt their li­ ical volume of output even at rising prices, quidity. They have added a large quantity of because they were accompanied, as we ex­ short-term Treasury securities to their portfo­ pected, by a sharp rise in the turnover of money lios, and they have also reduced reliance on balances. Moreover, this rise in velocity was volatile funds. The condition of the banking not associated with rising interest rates or de­ system has been further strengthened through veloping shortages of credit. On the contrary, widespread additions to retained earnings and conditions in financial markets have remained some new issues of common stock. The ratio relatively easy. of capital to risk assets of commercial banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 579 which declined steadily during the early 1970’s, banking committee, the Federal Open Market has thus increased appreciably, and confidence Committee recently reduced the upper limit of in the banking system has been bolstered. the projected growth range of M1 in the year Our Nation’s business enterprises have like­ ahead from IV2 per cent to 7 per cent and the wise taken advantage of the prevailing financial upper limit of M2 from IOV2 per cent to 10 per climate to improve their financial condition. cent. The changes are small, but they are a Corporations issued a huge volume of long-term logical step in light of financial developments bonds during 1975, and they used much of the and the behavior of the economy. proceeds to repay short-term debt and to acquire The decision to reduce the upper limit of the liquid assets. This year, they are still finding ranges for Mx and M2 reflects the experience long-term funds readily available. Public offer­ of the past year, when improvements in finan­ ings of bonds by domestic corporations will total cial technology made it possible for a moderate about $3 billion this month—an extraordinary rise in the money stock to finance a good eco­ volume by historical standards. For a time, nomic recovery with declining interest rates. access to public markets for long-term funds However, with a full year of renewed expansion was confined largely to firms with the highest in business activity already behind us, some credit ratings. Of late, however, some lower­ downward adjustment in the upper boundary of rated firms have found a more receptive public the growth ranges for M1 and M2 might have market for their debt issues, as is reflected in been called for in any event. The adjustment a narrowing of the yield spread between Aaa- in the projected growth ranges for Mx and M2 and A-rated bond issues from IV2 percentage over the year ahead was thus a very small but points last summer to about V2 percentage point prudent step in the right direction. Looking to this spring. Many medium-sized firms, and the longer future, it would be helpful if everyone others with lower credit ratings, have met their recognized that the rate of monetary expansion needs for long-term funds through private we have recently projected is still too high to placements with life insurance companies and be consistent with general price stability. other institutional lenders. Another indication of our intention to adhere Besides this, an improved stock market has to a moderate course of monetary policy may made it easier for corporations to raise equity be found in the prompt actions we took some funds for financing new investment programs or weeks ago to ward off the threat of excessive for restoring capital cushions. This month, cor­ growth of the monetary aggregates. In April, porate enterprises have sold about $1% billion the pace of monetary expansion jumped very of new shares to the public. If the pace of new sharply—to an annual rate of 15 per cent for stock offerings during the first half of this year Mx. We recognized that technical factors—such is maintained over the next 6 months, the year as the decline in the Treasury’s cash balance— will end with the largest volume of corporate might be partly responsible, and that the bulge stock flotations in our history. in the monetary growth rate might be temporary. These accomplishments in financial markets We could not, however, risk an explosion of indicate, I believe, that the course of moderation the monetary aggregates during a period of in monetary policy pursued by the Federal Re­ strongly advancing economic activity. serve over the past year has aided the process Over a period of several weeks, starting in of economic recovery. Our actions during recent late April, the Federal Reserve thus became weeks have further served to reassure the busi­ somewhat less accommodative in meeting the ness and financial community that we intend to demand for bank reserves. The upward move­ stick to a course of monetary policy that will ment in market rates of interest that followed support further growth of output and employ­ reflected our actions as well as rising demands ment, while avoiding excesses that would ag­ for credit. In more recent weeks, the pace of gravate inflationary pressures and thus create monetary expansion has again moderated; trouble for the future. short-term interest rates have stabilized or fallen As I indicated in testimony before the Senate back, and long-term rates may have begun de­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin □ July 1976 dining again. In the Board’s judgment, the plished, however. Unemployment remains small but prudent steps just described have much too high. Productivity has been lagging. bolstered confidence and enhanced prospects for The expansion of our industrial plant is pro­ sustaining a healthy economic recovery. The ceeding at too slow a pace. The homebuilding Board believes that the prospects for a durable industry and other branches of construction are prosperity would be further enhanced by mod­ still depressed. And the menace of inflation is eration in the course of fiscal policy. still with us, though in a less virulent form than The deficit in the Federal budget has dimin­ in many other countries around the world. ished very little over the past year—especially Rampant inflation abroad—West Germany and when the operations of off-budget agencies and Switzerland are outstanding exceptions—has Government-sponsored enterprises are taken contributed to the turbulence in foreign ex­ into account, as they should be. During the first change markets this year. quarter of this year, the annual rate of deficit, Participants in the economic summit meeting as calculated in the national income and product just concluded in Puerto Rico have recognized accounts, was still close to $70 billion, and there the dilemma faced by economic policy-makers is little evidence of a significant closing of the throughout the advanced industrial world today. huge gap between receipts and expenditures There is a pressing need for expansion in the during the second quarter. It is of the utmost economies of both the industrialized countries importance that the Congress and the adminis­ and the developing nations. However, tradi­ tration cooperate to maintain tight control over tional policies of economic stimulation may well Federal expenditures. At the present stage of prove to be counterproductive in today’s envi­ the business cycle, a substantial decline of the ronment of deeply ingrained inflationary expec­ Federal deficit is essential if renewed inflation­ tations. ary pressures are to be avoided and savings are The declaration of the conferees at Puerto to become available for much-needed private Rico regarding the need to maintain an eco­ investment. nomic climate that is conducive to enterprise We can all take considerable satisfaction in and investment, while working toward the the progress that has been made over the past complete elimination of inflation, is both wel­ year in restoring more prosperous conditions in come and appropriate. Both in this country and our country. Both the Congress and the admin­ abroad, our main hope for achieving lasting istration deserve credit for improving the eco­ prosperity lies in adhering to prudent fiscal, nomic climate. Much remains to be accom­ monetary, and structural policies. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

581 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON MAY 18, 1976 1. 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 rise in the GNP fixed-weighted price index had slowed substantially. Staff projections suggested that growth in real output was continuing at a vigorous, although slightly less rapid, pace in the current quarter and that it was likely to be more moderate in the second half of the year. The projections also suggested that the rise in prices would be above the relatively low first-quarter rate. Retail sales were unchanged in April. Over the period since November, however, retail sales had risen substantially, reflecting in large part strong demands for automobiles and general merchan­ dise. Industrial production continued to recover in April at about the average rate of the preceding 4 months. As in March, the rise reflected mainly increases in output of automobiles, other consumer goods, business equipment, and durable goods materials. Gains in employment were large and widespread in April. The civilian labor force grew as much as total employment, however, and the over-all unemployment rate remained at 7.5 per cent. Nevertheless, the unemployment rate for heads of households and for adult males declined. In manufacturing, the average factory workweek fell, but the decrease appeared to have been related to holidays in the week used for the survey of establishments. Private housing starts, which had rebounded sharply in February and then fallen moderately in March, declined somewhat further in April to the average level in the fourth quarter of 1975. Out­ standing mortgage loan commitments at savings and loan associa­ tions had risen in March, the latest month for which data were available, and had reached the highest level in 3 years. New orders for nondefense capital goods rose appreciably in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin □ July 1976 March for the third consecutive month, but the backlog of orders declined further. Nonresidential construction activity remained de­ pressed. However, a private survey suggested that over recent months business plant and equipment expenditures planned for this year had been raised considerably. The index of average hourly earnings for private nonfarm pro­ duction workers, which had risen at a less rapid pace over the first quarter of 1976 than it had on the average in 1975, continued to advance at a moderate rate in April. The schedule of labor contract negotiations had been light in the first 4 months of this year, and relatively few cost-of-living wage adjustments went into effect. From the fourth quarter of 1975 to the first quarter of 1976 over-all compensation per manhour in the private nonfarm economy rose as rapidly as it had on the average during 1975. The wholesale price index for all commodities rose appreciably in April, following a 5-month period of little change. Average prices of farm and food products rose sharply, after 5 months of decline, while average prices of industrial commodities continued upward at a moderate pace. In March the rise in the consumer price index had remained at a reduced rate, in large part because retail prices of foods and fuels had continued to decline. Staff projections now suggested that growth in real output in the current quarter would be stronger than had been projected 4 weeks earlier, provided that a current work stoppage in the rubber products industry ended before it caused significant curtailments in output in other industries. The greater strength in the quarter was attributed in large part to higher rates of business investment in fixed capital and inventories than had been projected a month ago, although a slightly faster rate of growth in personal consump­ tion expenditures also was now anticipated. Staff projections for the second half of the year suggested that expansion in business fixed investment would continue to accelerate and that business investment in inventories would remain at an advanced rate. It was also anticipated that growth in personal consumption expenditures would remain vigorous and that residen­ tial construction would continue to recover. However, the expan­ sion in State and local government purchases of goods and services was expected to remain relatively slow. The U.S. foreign trade balance was in deficit in March for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 583 third consecutive month, and the sizable deficit for the first quarter as a whole was in sharp contrast to large surpluses in each of the four quarters of 1975. The shift to deficit in the first quarter was attributable mainly to increases in imports associated with the expansion in the domestic economy; at the same time, exports declined somewhat. Over the period since the April 20 meeting of the Committee, the average value of the dollar against leading foreign currencies had remained relatively steady. Attention in the exchange markets during the period was focused on problems affecting the Italian lira and the British pound, both of which fluctuated considerably. On balance, the lira rose somewhat and the pound declined some­ what in relation to the dollar. Total loans and investments at U.S. commercial banks expanded somewhat further in April, reflecting almost entirely another large increase in bank holdings of Treasury securities. Bank holdings of other securities increased slightly. Total loans outstanding at banks declined, reflecting substantial net repayments of business and security loans. Other loans by banks continued to expand moderately. In general, business short-term credit demands remained weak in April. The outstanding volume of commercial paper issued by nonfinancial corporations rose, but the increase was offset by the decline in outstanding bank loans to businesses. Growth in the narrowly defined money stock—M1—accelerated to an annual rate of about 15 per cent in April, reflecting in part a rise in private balances resulting from a large decline in U.S. Government deposits.1 On the average from March to April Treas­ ury balances at Federal Reserve and commercial banks declined by almost $4 billion. Mt had grown at a moderate rate in February and March and at a slow rate over the preceding 4 months. The more broadly defined money stock measures—M2 and M3— also increased substantially in April, owing to the sharp rise in Mx and to continuing strong inflows of time and savings deposits (other than negotiable CD’s) at banks and nonbank thrift institulrThe monetary growth rates for April reported at this meeting were based on revised measures of the monetary aggregates, reflecting new benchmark data for deposits at nonmember banks. The revised measures were published on May 20, 1976. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin □ July 1976 tions. Interest rates on such deposits remained favorable relative to rates on short-term market instruments. System open market operations since the April 20 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions consistent with moderate growth in mon­ etary aggregates over the period ahead, while taking account of developments in domestic and international financial markets. Im­ mediately after the April meeting the System became less accom­ modative in the provision of reserves. Operations were directed toward achieving conditions of reserve availability consistent with a Federal funds rate of 4% per cent—the midpoint of the 4Vi to 5XA per cent operating range that the Committee had specified for the inter-meeting period and Vs percentage point above the rate prevailing at the time of the April meeting. Data that had become available soon after that meeting and in each subsequent week suggested that in the April-May period growth in Mx and M2 would be strong relative to the ranges that had been specified by the Committee. Accordingly, the System gradually became still less accommodative in the provision of reserves. By the end of the inter-meeting period the Federal funds rate was around 5Va per cent, the upper limit of the specified range, and market interest rates in general had risen. Upward pressures on market rates also reflected investor reactions to the indications of accelerated growth in the monetary aggregates and to reports suggesting vigorous economic recovery. In the short-term area, the rise in market rates during the inter-meeting period occurred despite continued weakness in private credit demands. In addition, the Treasury cut its outstanding short­ term indebtedness after midmonth by repaying a substantial amount of cash-management bills and by reducing the size of the weekly auctions of bills. On the day before this meeting the market rate on 3-month Treasury bills was 5.22 per cent, compared with 4.77 per cent on the day before the April meeting. In the intermediate- and long-term areas, demands for funds remained relatively strong in April. Public offerings of new cor­ porate bonds, although down from the exceptional volume in March, were still large. Offerings of new State and local govern­ ment bonds also fell from the exceptional total in March, but a rebound in the volume appeared to be in prospect for May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 585 On April 28 the Treasury announced that it would sell $6.25 billion of notes and bonds to refund $4.1 billion of publicly held notes that were to mature on May 15 and to raise $2.2 billion of new cash. In auctions on May 4 and May 7 it sold to the public $2 billion of 2-year notes and $750 million of 23-year 9-month bonds at average prices to yield 6.61 per cent and 8.19 per cent, respectively. For the remaining $3.5 billion, the Treasury offered 10-year, 7% per cent notes at par. However, subscriptions for these notes amounted to $8.9 billion, and on May 7 the Treasury accepted $4.7 billion of them. Altogether, the Treasury sold to the public almost $7.5 billion of notes and bonds, raising $3.4 billion in new cash. Interest rates on home mortgages in the primary market were unchanged during the inter-meeting period. In the more sensitive secondary market, yields edged up beginning in late April in reaction to the rise in other market rates of interest. At its April meeting, the Committee had agreed that growth in the monetary aggregates on the average over the period from the first quarter of 1976 to the first quarter of 1977 at rates within the following ranges appeared to be consistent with its broad economic aims: Mt, 4% to 7 per cent; M2, IVi to 10 per cent; and M3, 9 to 12 per cent. The associated range for growth in the bank credit proxy was 6 to 9 per cent. It was agreed that the longer-term ranges, as well as the particular list of aggregates for which such ranges were specified, would be subject to review and modification at subsequent meetings. It also was understood that, as a result of short-run factors, growth rates from month to month might well fall outside the ranges contemplated for annual periods. In the discussion of current policy at this meeting, the Committee took note of a staff analysis suggesting that over the May-June period the rate of growth in Mx was likely to subside from the rapid pace in April, which was attributable in part to the large decline in U.S. Treasury deposits. At the same time, however, it appeared that the underlying demand for money was strong and that a somewhat more typical relationship between growth in and growth in nominal GNP was in the process of being re-estab­ lished. Given the rate of GNP growth projected for the current quarter, the staff analysis suggested that, if prevailing money market conditions were maintained over the 5 weeks until the next Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin □ July 1976 meeting, growth in Mx over the May-June period would be within a range that was high relative to the longer-term range agreed upon by the Committee at the preceding meeting. The staff analysis also suggested that, if prevailing money market conditions were maintained over the next inter-meeting period, growth in M2 over the May-June period would remain relatively rapid, although less so than the average rate during the first 4 months of the year. It was expected that thrift institutions’ inflows of time and savings deposits other than money market CD’s would be dampened by the recent rise in interest rates and that some deposits would be withdrawn in order to make payment in mid-May for the new 10-year, 7% per cent Treasury notes. It was noted that credit market pressures would be affected by the recent build-up in the calendar of new corporate and State and local government bond issues. In general, demands for interme­ diate- and long-term funds across all market sectors were likely to remain strong. Moreover, it was not yet clear whether longerterm market rates had fully adjusted to the recent firming in money market conditions. During the Committee’s discussion, it was observed that the recovery in economic activity had proceeded in a satisfactory way, although the rate of unemployment remained high and re-intensifi­ cation of inflationary pressures was a serious threat. Recent gains in production and employment had been sizable, and a significant expansion in business demands for fixed capital and for inventories appeared to be developing. Altogether, the outlook for economic activity was strong; to some members of the Committee, it appeared stronger than suggested by the staff projections. The members agreed that growth in monetary aggregates recently had been at unacceptably high rates, especially in view of the longer-run ranges for growth that had been adopted at the preceding meeting. It was observed that the moderate monetary policy that the System had been pursuing had contributed to a return of confidence; that to sustain confidence it was important for the System to demonstrate its intention to resist unduly rapid growth in the monetary aggregates; and that pursuit of that objective would run little or no risk of aborting the recovery in economic activity. A number of members expressed the view that failure to take additional steps now to restrain growth in the monetary aggregates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 587 might confront the Committee with the need to take stronger measures later on, if growth rates were to be held within the longer-run ranges agreed upon at the last meeting. At the same time, it was felt that the System should proceed cautiously because the exceptionally rapid growth in the monetary aggregates recently might be a temporary aberration and because some modest tighten­ ing in money market conditions already had taken place. It was noted that the Federal funds rate had turned up from a level of around 4% per cent and had risen 50 basis points in the period since the April meeting and that interest rates in general had increased. Some concern was expressed about the rise in longer-term rates. The observation was also made, however, that rising rates would not have much impact on economic activity until late this year or early next year, and should a strong capital investment boom be under way at that time, prompt action now to restrain monetary growth would be viewed, retrospectively, as especially appropriate. In general, Committee members favored directing operations in the period immediately ahead toward moderating growth of the monetary aggregates, and they indicated that in pursuit of that end they would accept some modest further firming in money market conditions. However, they differed in their preferences for specifics of operating instructions for the coming period. Most members favored specification of Mx and M2 ranges of growth for the May-June period that were close to the longer-run ranges that had been agreed upon at the last meeting. Other members preferred to specify somewhat higher ranges of growth for Mx and M2 over the May-June period in recognition of the growth rates that ap­ peared to be already developing. In general, however, they were willing to accept slightly more firming in money market conditions than were members in the first group, should the 2-month rates of growth in the aggregates appear to be approaching or exceeding the upper limits of those higher ranges. At the conclusion of the discussion the Committee decided to seek bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Specifically, the members agreed that growth in Mx and M2 over the May-June period at annual rates within ranges of 4 to IV2 per cent and 5 to 9 per cent, respectively, would be acceptable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin □ July 1976 They decided that, in assessing the behavior of the aggregates, approximately equal weight should be given to and M2. The members agreed that until the next meeting the weeklyaverage Federal funds rate might be expected to vary in a gradual and orderly way within a range of 5 to 53A per cent. They also agreed that, in the conduct of operations, account should be taken of developments in domestic and international financial markets. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that growth in real output of goods and services is continuing at a vigorous pace in the current quarter. In April recovery in industrial production continued, and gains in employment were large and widespread. However, the civilian labor force also increased substantially, and the unemployment rate continued at 7.5 per cent. Retail sales remained at the March level. The wholesale price index for all commodities rose appreciably in April, reflecting a sharp increase in average prices of farm products and foods and a modest increase in prices of industrial commodities. Over recent months, the index of average wage rates has advanced moderately. The average value of the dollar against leading foreign currencies has been relatively steady in recent weeks. During the first quarter, there was a sizable U.S. foreign trade deficit, in contrast to the large surpluses in the preceding four quarters. Mx, which had expanded moderately in February and March, increased sharply in April, reflecting in part a drop in U.S. Govern­ ment deposits. Inflows of time and savings deposits other than negotiable CD’s were strong at banks and nonbank thrift institutions, and M2 and M3 increased substantially. In recent weeks, both shortand long-term market interest rates have risen. 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, Gardner, Jackson, Kimbrel, Partee, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 589 Wallich, and Winn. Vote against this action: Mr. Coldwell. Mr. Coldwell dissented because he did not want to provide for the possibility of a rise of as much as V2 percentage point in the Federal funds rate over the next inter-meeting period in addition to the rise of V2 percentage point that had occurred since the last meeting. In his opinion, a further rise of that amount could have an exaggerated effect on expectations in the financial markets, provoking excessive increases in interest rates. Rapid monetary growth recently, he thought, might reflect transitory forces to a significant degree, so that much further tightening in money market conditions over the next few weeks could force consideration later on of the need for a reversal. Accordingly, he favored a range of 5 to 5V2 per cent for the weekly-average Federal funds rate until the next meeting and a range of 6 to 10 per cent for the annual rate of growth in Mx over the May-June period. 2. Release Schedule for the Record of Policy Actions At this meeting the Committee approved a motion that the record of policy actions for each meeting of the Committee be released to the public shortly after the next regularly scheduled meeting. A publication delay of approximately 45 days had been in effect since early 1975. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Gardner, Jackson, Kimbrel, Partee, Wallich, and Winn. Votes against this action: None. Abstention: Mr. Coldwell. This action was taken to provide information regarding the Committee’s policy actions on a more timely basis. Since the majority of meetings are held at 4-week intervals, the delay now will most often be about a month. For the minority of meetings that are followed by a 5-week interval, the delay will be about a week longer. From mid-1967 to early 1975, a delay of approximately 90 days had been in effect. Prior to mid-1967, when the Committee’s Rules Regarding the Availability of Information were changed to comply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin □ July 1976 with the Freedom of Information Act, the records of policy actions were published only in the Board’s Annual Report to Congress. In conjunction with the foregoing action, the Committee amended Section 271.5(a) of its Rules Regarding the Availability of Information to delete the sentence reading “For example, the Committee’s domestic policy directive adopted at each meeting of the Committee is published in the Federal Register approximately 45 days after the date of its adoption; and no information in the records of the Committee relating to the adoption of any such directive is made available for public inspection or copying before it is published in the Federal Register or is otherwise released to the public by the Committee.” With this amendment, Section 271.5(a) reads as follows: (a) Deferred availability of information.—In some instances, certain types of information of the Committee are not published in the Federal Register or made available for public inspection or copying until after such period of time as the Committee may determine to be reasonably necessary to avoid the effects described in paragraph (b) of this section or as may otherwise be necessary to prevent impairment of the effective discharge of the Committee’s statutory responsibilities. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Partee, Wallich, and Winn. Votes against this action: None. 3. Memorandum of Discussion At this meeting the Committee approved a motion that the memo­ randum of discussion be discontinued after the memorandum for the meeting of March 15-16, 1976. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Gardner, Jackson, Kimbrel, Partee, Wallich, and Winn. Vote against this action: Mr. Coldwell. This action was taken against the background of the Committee’s decision to speed up publication of the records of policy actions, and of its understanding that the policy records would be expanded to include more information concerning members’ views on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 591 longer-run and current policy. The memoranda of discussion are detailed accounts of proceedings at meetings of the Committee, which have been available to the public 5 years after the end of the year to which they apply. The decision to discontinue these memoranda reflected the Committee’s judgment that the benefits derived from them did not justify their relatively high cost, partic­ ularly in light of the changes being made in the policy record. Mr. Coldwell dissented from this action because he felt that the benefits of the memorandum of discussion justified its retention. 4. Foreign Currency Operations On June 6, following consultations among members of the Foreign Currency Subcommittee of the Federal Open Market Committee, the System agreed that it would stand ready to make available $1 billion to the Bank of England under the existing reciprocal currency arrangement with that Bank. At the same time, the Treasury Department, through the Exchange Stabilization Fund, agreed that it would stand ready to make available $1 billion under a swap arrangement with the Bank of England. The System and the Treasury participated with central banks of other Group of Ten countries, Switzerland, and the Bank for International Settlements in making available to the' Bank of Eng­ land standby credits totalling $5.3 billion. Those arrangements were made in the light of the recent fall in the value of the pound sterling under exchange market pressures that had led to disorderly market conditions, and in the common interest in the stability and efficient functioning of the international monetary system. * * * * * 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

592 Law Department Statutes, regulations, interpretations, and decisions Home Mortgage Disclosure Section 203.2—Definitions The Board of Governors has added a new Part For the purposes of this Part, the following 203 (Regulation C) to implement the Home Mort­ definitions apply unless the context indicates oth­ gage Disclosure Act of 1975, which requires the erwise: disclosure of mortgage loan data by depository (a) Act means the Home Mortgage Disclosure institutions that make Federally related mortgage Act of 1975 (Title III of Pub. L. 94-200; 89 Stat. loans as determined by the Board and are located 1125 et seq.). in standard metropolitan statistical areas. (b) Branch office means any office approved Effective June 28, 1976, a new Part 203 is added as a branch of the depository institution by that to read as follows: depository institution’s Federal or State supervi­ sory agency. Index to Sections (c) Depository institution means any commer­ cial bank, savings bank, savings and loan associa­ Section 203.1 Authority, Scope, and Enforcement tion, building and loan association, homestead Section 203.2 Definitions association (including cooperative banks), or Section 203.3 Exemptions credit union, which makes Federally related mort­ Section 203.4 Compilation of Mortgage Loan Data gage loans. Any majority-owned subsidiary of a Section 203.5 Disclosure Requirements depository institution shall be deemed to be part Section 203.6 Sanctions for Violations of its parent depository institution for the purposes Section 203.7 Effective Date of this Part. (d) Federally related mortgage loan means Section 203.1—Authority, any loan (other than temporary financing such as a construction loan) which (i) is secured by a first Scope, and Enforcement lien on residential real property (including indi­ (a) Authority and scope. This Part comprises vidual units of condominiums and cooperatives) the regulations issued by the Board of Governors that is designed principally for the occupancy of of the Federal Reserve System pursuant to the from one to four families and is located in a State; Home Mortgage Disclosure Act of 1975 (Title III and (ii)(A) is made in whole or in part by a of Pub. L. 94-200; 89 Stat. 1125 et seq.). This depository institution the deposits or accounts of Part applies to depository institutions which make which are insured by any agency of the Federal Federally related mortgage loans. Nothing in the Government, or is made in whole or in part by Act or this Part is intended to, nor shall it be a depository institution which is regulated by any construed to, encourage unsound lending practices agency of the Federal Government; or (B) is made or the allocation of credit. in whole or in part, or insured, guaranteed, sup­ (b) Administrative enforcement. As set forth plemented, or assisted in any way, by the Secre­ more fully in sections 305 and 306 of the Act, tary of Housing and Urban Development or any compliance with the provisions of the Act and this other officer or agency of the Federal Government Part shall be enforced by the Comptroller of the or under or in connection with a housing or urban Currency, the Board of Governors of the Federal development program administered by any other Reserve System, the Board of Directors of the such officer or agency; or (iii) is intended to be Federal Deposit Insurance Corporation, the Fed­ sold by the depository institution that originates eral Home Loan Bank Board (acting directly or the loan to the Federal National Mortgage Associ­ through the Federal Savings and Loan Insurance ation, the Government National Mortgage Associ­ Corporation), and the Administrator of the Na­ ation, the Federal Home Loan Mortgage Corpora­ tional Credit Union Administration. tion, or a financial institution from which it is to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 593 be purchased by the Federal Home Loan Mortgage (1) any depository institution that has total assets Corporation. as of the last day of its last full fiscal year of (e) FHA, FmHA, or VA loans means mortgage $10,000,000 or less; or loans which are insured under Title II of the (2) any depository institution that has neither National Housing Act or under Title V of the a home office nor any branch office located in a Housing Act of 1949 or which are guaranteed standard metropolitan statistical area (SMSA) as under Chapter 37 of Title 38, United States Code. currently defined by the Office of Management and (f) Home improvement loan means a loan, Budget of the United States Government; or unsecured or secured by collateral other than a first (3) any State-chartered depository institution lien on residential real property, (i) the proceeds subject to the mortgage loan disclosure laws (stat­ of which are to be used for the purpose of repair­ utes or regulations) of a State or subdivision ing, rehabilitating, or remodeling an existing resi­ thereof that the Board determines, in accordance dential dwelling located in a State as stated by with the procedures set forth in the Supplement the borrower to the lender at the time of the loan to this Part, contain (i) requirements substantially transaction, and (ii) that is recorded on the books similar to those imposed under the Act, and (ii) of the depository institution as a home improve­ adequate provisions for enforcement. ment loan. (b) A depository institution that was exempt on (g) Mortgage loan means a “residential mort­ or after the effective date of this Part on the basis gage loan” as defined in paragraph (h) of this of paragraph (a) of this section and that subse­ section or a “home improvement loan” as defined quently becomes no longer exempt shall compile in paragraph (f) of this section. the data described in section 203.4 of this Part (h) Residential mortgage loan means a loan for each fiscal year beginning with its last full which is secured by a first lien on residential real fiscal year ending prior to the date it was no longer property located in a State, including a first lien exempt, and that last full fiscal year shall be refinancing of an existing loan, but shall not in­ deemed to be a “full fiscal year ending prior to clude (i) temporary financing (such as a con­ July 1, 1976” for the purposes of section 203.4 struction loan), or (ii) purchase of an interest in of this Part. a pool of mortgage loans (such as mortgage par­ Section 203.4— ticipation certificates issued or guaranteed by the Compilation of Mortgage Loan Data Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or (a) Data to be included. (1) Each depository the Farmers Home Administration), or (iii) a loan institution shall aggregate, separately for each made primarily for business or consumer purposes standard metropolitan statistical area (SMSA) in (other than to purchase, repair, rehabilitate or which it has a home office or branch office, its remodel residential real property) but in connec­ mortgage loan data for each fiscal year beginning tion with which a first lien on residential real with its last full fiscal year ending prior to July property is taken as collateral. 1, 1976, with the exception of mortgage loans (i) Residential real property means improved described in subsection (4) of this paragraph. real property used or to be used for residential Mortgage loan data relating to residential real purposes, including single-family homes, dwell­ property located within the relevant SMSA (i.e., ings for from two to four families, multi-family the SMSA where a home or branch office is dwellings, and individual units of condominiums located) shall be segregated from mortgage loan and cooperatives. data relating to residential real property located (j) State means any State of the United States outside the relevant SMSA and shall be itemized of America, the District of Columbia, and the by the census tract in which the principal residen­ Commonwealth of Puerto Rico. tial real property securing the residential mortgage loan (or, in the case of home improvement loans, Section 203.3—Exemptions the property to be improved) is located (except (a) The following categories of depository insti­ as provided in subsection (2) of this paragraph) tutions are exempt from the compilation of data according to the following classifications in a for­ and disclosure requirements of sections 203.4 and mat similar to guideline Form HMDA-1, which 203.5 of this Part: is set forth in the appendix to this Part: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin □ July 1976 (i) FHA, FmHA, or VA loans, except on to the extent that such data relate to: multi-family dwellings (i.e., dwellings for more (i) a full fiscal year ending prior to July 1, than four families), subdivided as to those loans 1976; or (A) originated and (B) purchased by the depository (ii) a part of a fiscal year if that part ends institution, during that fiscal year; on June 30, 1976, provided that a mortgage loan (ii) residential mortgage loans other than disclosure statement for that part of the fiscal year FHA, FmHA, or VA loans and other than loans is made available by the depository institution by on multi-family dwellings, subdivided as to those September 30, 1976, and a separate mortgage loan loans (A) originated and (B) purchased by the disclosure statement for the remaining part of that depository institution, during that fiscal year; fiscal year (itemizing mortgage loan data relating (iii) all residential mortgage loans, except on to residential real property within the relevant multi family dwellings, (i.e., sum of classifica­ SMSA by census tracts) is made available by the tions (i) and (ii)), subdivided as to those loans depository institution within ninety days of the end (A) originated and (B) purchased by the depository of that fiscal year; or institution, during that fiscal year; (iii) residential real property located in an area (iv) home improvement loans, except on of a currently defined relevant SMSA that is not multi-family dwellings, subdivided as to those tracted on the maps (as a portion of then-defined loans (A) originated and (B) purchased by the SMSA’s or otherwise) in the series “1970 Census depository institution, during that fiscal year; of Population and Housing: CENSUS TRACTS, (v) all mortgage loans (home improvement Final Reports, PHC(l) Series” prepared by the loans and residential mortgage loans) on multi­ Bureau of the Census of the United States Depart­ family dwellings, subdivided as to those loans (A) ment of Commerce. originated and (B) purchased by the depository (3) Mortgage loan data to be compiled as de­ institution, during that fiscal year; and scribed in this paragraph shall be in terms of (vi) all mortgage loans (home improvement number of loans and total dollar amounts (original loans and residential mortgage loans), except on principal amounts of loans originated by the insti­ multi-family dwellings, made to any borrower who tution to the extent of its interest, where the loan did not, at the time of the loan transaction, intend is made jointly or cooperatively, and unpaid to reside as his principal dwelling in the property principal balances of loans purchased by the de­ securing the residential mortgage loan (or, in the pository institution, to the extent of its interest in case of home improvement loans, the property to such purchased loans), except that, in the case of be improved), subdivided as to those loans (A) purchased home improvement loans, the amount originated and (B) purchased by the depository to be reported may include the unpaid finance institution, during that fiscal year. charges. The compilations shall be on an annual Classifications (i) through (v) include loans to both basis and relate to mortgage loans originated or occupants and non-occupants of the property. purchased solely during the relevant fiscal year. Mortage loan data relating to residential real prop­ (4)(i) A depository institution shall not include erty located outside the relevant SMSA (or rele­ in its mortgage loan data to be compiled pursuant vant SMSA’s in the case of a depository institution to paragraph (a) of this section: with home or branch offices in more than one (A) a refinancing that it originates involving SMSA) shall also be itemized according to classi­ no increase in the outstanding balance of the fications (i) through (v) set forth above, but further principal due on the existing loan where the de­ itemization of that data by census tracts or United pository institution and the borrower are the same States Postal Service ZIP codes is not required. parties to the existing loan and the refinancing; (2) Mortgage loan data relating to residential and real property located within the relevant SMSA (B) a loan originated or purchased by the may be itemized, according to the classifications depository institution acting as trustee or in some specified in subsection (1) of this paragraph, by other fiduciary capacity. United States Postal Service ZIP codes for the area (ii) For the purpose of compiling mortgage in which the principal residential real property loan data pursuant to paragraph (a) of this section securing the residential mortgage loan (or, in the with respect to a full fiscal year ending prior to case of home improvement loans, the property to July 1, 1976, a depository institution may— be improved) is located, in lieu of census tracts, (A) notwithstanding the definition contained Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 595 in section 203.2(f) of this Part, itetnize as home tended to prohibit the use of maps, directories, improvement loans those loans that it has classified computer programs, or the like that have more as home improvement loans for the purposes of recent definitions of the applicable SMSA areas State law, provided that no loans secured by first than those specified in subsection (1) of this para­ liens on residential real property shall be included graph, provided that every mortgage loan relating as home improvement loans in the mortgage loan to residential real property within the applicable disclosure statement and reference is made in the areas of the relevant SMSA as specified in subsec­ disclosure statement to the State law definition of tion (1) of this paragraph or within the areas of home improvement loan that is being utilized; or the relevant SMSA as more recently defined shall (B) omit, at its option, any mortgage loanb e included in the data to be itemized by census that was (1) both originated and either sold or paid tracts or ZIP codes as required by paragraph (a) in full during such fiscal year, or (2) both pur­ of this section. If such updated revisions are uti­ chased and either sold or paid in full during such lized, the mortgage loan disclosure statement shall fiscal year, provided that the depository institution indicate the source of the revision. consistently applies this option with respect to all (c) Applicable presumption. For the purpose loans in those categories and clearly states in its of compiling mortgage loan data described in mortgage loan disclosure statement for that year paragraph (a) of this section, a depository institu­ that such data have been omitted. tion m^y presume (unless its records relating to (b) Applicable SMSA’s, census tracts and that loan contain information to the contrary) with ZIP codes. (1) For the purpose of determining respect to any mortgage loan originated prior to whether a mortgage loan is to be included in the June 28, 1976, or purchased at any time, that the classifications relating to residential real property borrower intended, at the time of the loan transac­ within the relevant SMSA as described in para­ tion, to reside as his principal dwelling in the graph (a) of this section (but not for the purpose property securing the residential mortgage loan of determining exemptions pursuant to section (or, in the case of home improvement loans, the 203.3(a)(2) of this Part), the applicable areas of property to be improved), if such property is a the relevant SMSA shall be those as defined by residential dwelling used or to be used by from the Office of Management and Budget of the one to four families. United States Government and in effect on June 28, 1976, or the first day of the fiscal year to which Section 203.5—Disclosure Requirements the mortgage loan disclosure statement relates, whichever is the later date. (a) Dates disclosure statements due. (1) Each (2) Applicable census tract numbers and bound­ depository institution shall make available to the aries shall be those appearing on the census tract public by the following dates mortgage loan dis­ maps in the series “1970 Census of Population closure statements required to be compiled pursu­ and Housing: CENSUS TRACTS, Final Reports, ant to section 203.4 of this Part: PHC(l) Series” prepared by the Bureau of the (i) September 30, 1976, in the case of a Census, United States Department of Commerce. disclosure statement relating to a full fiscal year If the number itself would be duplicated in the ending prior to July 1, 1976, except as provided mortgage loan disclosure statement for the relevant in subsection (2) of this paragraph; SMSA, the county, city, or town that uniquely (ii) within ninety days of the end of the identifies the census tract shall be identified in that relevant fiscal year in the case of a disclosure disclosure statement. statement that relates to a full fiscal year ending (3) An applicable ZIP code shall be that for the subsequent to June 30, 1976; and area in which the principal residential real property (iii) within ninety days of the date a deposi­ securing the residential mortgage loan (or, in the tory institution becomes no longer exempt in the case of home improvement loans, the property to case of the initial disclosure statement required be improved) is located. No depository institution pursuant to section 203.3(b) of this Part. is obligated to revise its mortgage loan data to (2) If an application for an exemption is filed reflect official changes of ZIP code numbers or by September 30, 1976, pursuant to section boundaries made after the ZIP code for a particular 203.3(a)(3) of this Part, a State-chartered deposi­ loan is recorded. tory institution subject to the mortgage disclosure (4) Nothing contained in this paragraph is in­ laws of a State or subdivision thereof being con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin □ July 1976 sidered in the application shall not be required to offices (home and branch) are located where there compile and make available to the public a mort­ is no general public access shall make available gage loan disclosure statement relating to a full mortgage loan disclosure statements required to be fiscal year ending prior to July 1, 1976, while the compiled pursuant to section 203.4 of this Part, application is pending before the Board. If the by the dates specified in paragraph (a) of this State-chartered depository institution is not granted section, in either of the following ways: an exemption by the Board’s determination on the (i) it shall designate a place convenient and application, that depository institution shall make accessible to the public within the SMSA of its the disclosure statement for that fiscal year avail­ home office where the entire mortgage loan dis­ able within sixty days of the date of the Board’s closure statement (relating to all SMSA’s with determination. respect to which it is required to compile mortgage (3) Any mortgage loan disclosure statement loan data) will be available at reasonable times, required to be made available shall be maintained and shall designate a convenient and accessible and made available for a period of five years after place within every other SMSA where it has a the close of the first fiscal year during which that branch office, at which designated place will also disclosure statement is required to be maintained be made available the entire mortgage loan disclo­ and made available. sure statement except for the omission, at the (b) Offices at which disclosure statements to option of the depository institution, of census tract be made available. (1) Except as provided in or ZIP code itemizations with respect to relevant subsection (2) of this paragraph, each depository SMSA’s other than the SMSA where the particular institution shall make available to the public dis­ branch is located provided that aggregated data closure statements required to be compiled pursu­ from the disclosure statement with respect to each ant to section 203.4 of this Part, by the dates of those other relevant SMSA’s (i.e., the column specified in paragraph (a) of this section, at its totals of Section I of the appendix to this Part) home or branch offices, as follows: are furnished; or (i) in the case of depository institutions that (ii) it shall promptly furnish by mail to anyone have home or branch offices in only one SMSA, requesting the information a copy of a required the entire mortgage loan disclosure statement shall mortgage loan disclosure statement, imposing no be made available at the home office and at least more than a reasonable charge for the cost of at one branch office at the home office and at least reproduction of the data. at one branch office (if there is such a branch office) (3) A depository institution shall make appro­ within that SMSA; and priate efforts at least once each year to notify its (ii) in the case of depository institutions that depositors of the availability of its mortgage loan have home and branch offices in more than one data, such as by (i) inserting a notice in a periodic SMSA, (A) the entire mortgage loan disclosure account statement or other communication to de­ statement (relating to all SMSA’s with respect to positors, (ii) posting a notice in the lobbies of its which the depository institution is required to home and branch offices located in SMSA’s for compile mortgage loan data) shall be made avail­ at least one month, or (iii) publishing a notice in able at the home office and (B) the entire mortgage a newspaper or newspapers of general circulation loan disclosure statement shall also be made in the SMSA’s in which its home and branch available at least at one branch office within every offices are located. SMSA where the depository institution has branch (4) Upon request, any office of a depository offices (including the SMSA where the home office institution shall promptly provide information re­ is located), except that the disclosure statement garding the location of any office or designated at a particular branch office need not include place of that depository institution at which mort­ census tract or ZIP code itemizations with respect gage loan disclosure statements are available. to relevant SMSA’s other than the SMSA in which (c) Manner of making disclosure statements the particular branch office is located provided that available. Each office or designated place of a aggregated data from the disclosure statement with depository institution that is required pursuant to respect to each of those other relevant SMSA’s paragraph (b) of this section to make a mortgage (i.e., the column totals of Section I of the appendix loan disclosure statement available shall make to this Part) are furnished. such a mortgage loan disclosure statement avail­ (2) Any depository institution all of whose able to anyone requesting it for inspection or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 597 copying during the hours in which such office or applicable requirements of the laws of the State designated place is normally open to the public or municipality are substantially similar to all for business. If a depository institution makes requirements imposed under this Regulation in­ reproduction facilities available, it may impose a cluding an explanation of reasons as to why any reasonable charge for the cost of reproduction of differences are not significant; (3) a copy of the the data. full text of the laws of the State or subdivision thereof which provide for enforcement of the State Section 203.6—Sanctions for Violations laws referred to in item (1) of this paragraph; and (a) A violation of the Act or this Part is subject (4) an undertaking to inform the Board within 30 to sanctions as provided in section 305 of the Act. days of the occurrence of any change in the appli­ (b) An error in compiling or disclosing required cable law or regulations of the State or munici­ mortgage loan data shall not be deemed to be a pality. violation of the Act or this Part if the error was (c) Public notice of filing. In connection with unintentional and resulted from a bona fide mistake any application which has been filed in accordance notwithstanding the maintenance of procedures with the requirements of paragraphs (a) and (b), reasonably adopted to avoid any such error. notice of such filing will be published by the Board in the Federal Register, and a copy of such appli­ Section 203.7—Effective Date cation will be made available for examination by interested persons during business hours at the This Part shall be effective on June 28, 1976. Board and at the Federal Reserve Bank of each Federal Reserve District in which the applicant is Supplement to Part 203 situated. A period of time will be allowed from the date of such publication for the Board to Procedures for an Application receive written comments from interested persons for Exemption Pursuant to with respect to that application. Should multiple Paragraph (a)(3) of Section 203.3 applications be received with respect to the laws of the same State or municipality, the Board may, (a) Application. Any State or subdivision in its discretion, (1) consolidate the notice of thereof,1 State-chartered depository institution, or receipt of all such applications in one Federal association of State-chartered depository institu­ Register notice, and (2) dispense with publication tions, may make application to the Board pursuant of the notice of applications received after publi­ to the terms of this Supplement and the Board’s cation of the notice of an application relating to Rules of Procedure (12 CFR 262) for a determi­ the laws of the same State or municipality. nation that, under the laws of that State or munic­ (d) Exemption from requirements. If the ipality,2 a State-chartered depository institution is Board determines on the basis of the information subject to requirements substantially similar to before it that under the laws of a State or munici­ those imposed by Regulation C (12 CFR 203) and pality some or all State-chartered depository insti­ that there is adequate provision for enforcement tution^) are subject to requirements substantially of such requirements. similar to those imposed by this Regulation, and (b) Supporting documents. The application, that there is adequate provision for enforcement which may be made by letter, shall be accompa­ of such requirements, the Board will exempt those nied by (1) a copy of the full text of the laws State-chartered depository institutions in that State of the State or municipality which are claimed by or municipality that are subject to such require­ the applicant to impose requirements substantially ments from the requirements of the Act and the similar to those imposed by this Regulation; (2) Board’s regulations in the following manner: (1) a statement of reasons to support the claim that Notice of the exemption will be published in the Federal Register and the Board will furnish a copy of such notice to the applicant, to each State or 1 Hereinafter referred to as a municipality. municipal authority responsible for administrative 2 Any reference to the laws of a State or municipality in this Supplement includes a reference to any regulations which enforcement of the laws of the State or munici­ implement such laws and official interpretations thereof, and pality, to the regulatory authorities specified in to regulations of a State or municipal agency or department section 305(b) of the Act, and to each interested having jurisdiction over a class or classes of depository institu­ tions. person who has participated in the proceeding. (2) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin □ July 1976 The Board will inform the appropriate official of adequate provision for enforcement. (2) Notice of any State or municipality in which State-chartered the Board’s intention to revoke any exemption depository institutions that have received an ex­ previously granted shall be published in the Fed­ emption are located of any subsequent amend­ eral Register and shall be transmitted to the ap­ ments of the Act (including the implementing propriate official of the State or municipality. A provisions of this Part and published interpreta­ period of time will be allowed from the date of tions of the Board) which might call for amend­ publication for the Board to receive written com­ ment of the law, regulations or official interpreta­ ments from interested persons with respect to the tions of the State or municipality. proposed revocation. (3) In the event of revocation (e) Revocation of exemption. (1) The Board of such exemption, notice of such revocation shall reserves the right to revoke any exemption if it be published by the Board in the Federal Register at any time determines that the laws of a State and a copy of such notice shall also be furnished or municipality do not in fact impose requirements to the appropriate official of the State or munici­ which are substantially similar to those imposed pality and to regulatory authorities specified in by this Regulation or that there is not in fact section 305(b) of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Page 1 of 2 FORM HMDA-1 (Pursuant to Public Law 94-200) MORTGAGE LOAN DISCLOSURE STATEMENT (Specimen Form) Federal Enforcement Agency for this Institution Name of Depository Institution ________________________________________ Name________________________________ _ Relevant SMSA ______________________________________________________ Address _________________________________ Reporting Period______________________ PART A ORIGINATIONS Section I Mortgage loan data relating to residential real property located within the relevant SMSA Loans to both Occupants and Non-occupants of the Property Addendum Item OTHER RESIDENTIAL TOTAL TOTAL HOME FHA, FmHA or VA MORTGAGE LOANS RESIDENTIAL IMPROVEMENT TOTAL MORTGAGE NON-OCCUPANT CENSUS TRACT LOANS (except on (“Conventional”) MORTGAGE LOANS LOANS (except on LOANS ON MULTI­ LOANS (except on or multi-family (except on multi­ (except on multi­ multi-family FAMILY multi-family ZIP CODE dwellings) family dwellings) family dwellings) dwellings) DWELLINGS dwellings) (in numerical sequence) No. of Principal No. of Principal No. of Principal No. of Principal No. of Principal No. of Principal Loans Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans Amount Column Totals Section II Mortgage loan data relating to residential real property located outside the relevant SMSA (or SMSA’s) See Instructions Law Department 599 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Page 2 of 2 FORM HMDA-1 MORTGAGE LOAN DISCLOSURE STATEMENT (cont.) (Specimen Form) PART B PURCHASED LOANS Section I Mortgage loan data relating to residential real property located within the relevant SMSA Loans to both Occupants and Non-occupants of the Property Addendum Item OTHER RESIDENTIAL TOTAL TOTAL HOME FHA, FmHA or VA MORTGAGE LOANS RESIDENTIAL IMPROVEMENT TOTAL MORTGAGE NON-OCCUPANT CENSUS TRACT LOANS (except on (“Conventional”) MORTGAGE LOANS LOANS (except on LOANS ON MULTI­ LOANS (except on or multi-family (except on multi­ (except on multi­ multi-family FAMILY multi-family ZIP CODE dwellings) family dwellings) family dwellings) dwellings) DWELLINGS dwellings) (in numerical sequence) No. of Principal No. of Principal No. of Principal No. of principal No. of Principal No. of Principal Loans Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans Amount 1 Column Totals Section II Mortgage loan data relating to residential real property located outside the relevant SMSA (or SMSA’s) instructions: 1. Data may be rounded to nearest thousands of dollars. 2. If more than one SMSA is involved, the relevant SMSA should be indicated next to the tract number or, preferably, separate pages should be used. 3. If the tract number is duplicated within .a SMSA, the county, city or town that uniquely identifies the number should be stated next to the number. 4. Whenever a ZIP code number is permitted to be used, it should be preceded by the letter “Z”. 5. If the statement is prepared on the basis of the definition of the relevant SMSA that is more recent than that in effect on the first day of the reporting period, so indicate. 6. Census tract numbers are those appearing on the maps in the Bureau of the Census 1970 PHC(l) series, but computer coding is permissible if explained on the statement. 7. “Multi-family dwellings” means residential dwellings for more than four families. 8. The column “Total Residential Mortgage Loans” should equal the sum of the preceding two columns (except for rounding). 9. This statement must be retained and made available for a period of five years from the last day of the reporting period. 10. If census tract itemization is required, the relevant tract maps should be conveniently made available with the statement. 600 Federal Reserve Bulletin □ July 1976 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 601 Reserves of Member Banks uled repayment already approved by the appro­ priate Federal bank regulatory agency), including Interest on Deposits but not limited to a payment pursuant to acceler­ ation of maturity, may be made without the prior The Board of Governors has amended its Regu­ written approval of the appropriate Federal bank lations D and Q to provide greater flexibility in regulatory agency;9 is in an amount of at least the issuance by member banks of subordinated $500, Except, That the appropriate Federal bank notes and debentures that are considered part of regulatory agency may approve the issuance of an the bank’s capital structure obligations and be­ obligation that is less than $500 if such lesser lieves that it is important for the banking supervi­ amount is necessary (a) to satisfy the preemptive sor to scrutinize the condition of the issuing bank rights of shareholders in the case of a convertible prior to such repayment. debt obligation, (b) to maintain a ratable unit Effective July 26, 1976, Regulations D and Q offering to holders of preemptive rights in the case are amended as follows: of an obligation issued exclusively as part of a 1. Section 204.1 of Regulation D is amended unit including shares of stock which are subject as follows: to such preemptive rights, or (c) to satisfy share­ holders’ ratable claims in the case of an obligation Section 204.1—Definitions issued wholly or partially in exchange for shares of voting stock or assets pursuant to a plan of (f) Deposits as including certain promissory merger, consolidation, reorganization, or other notes and other obligations. For the purposes of transaction where the issuer will acquire either a this Part, the term “deposits” also includes a majority of such shares of voting stock or all or member bank’s liability on any promissory note, substantially all of the assets of the entity whose acknowledgment of advance, due bill, banker’s assets are being acquired; and has been approved acceptance, or similar obligation (written or oral) by the appropriate Federal bank regulatory agency that is issued or undertaken by a member bank as an addition to the capital structure of the issuing as a means of obtaining funds to be used in its bank; or (ii) meets all of the requirements in the banking business, except any such obligation that: preceding clause except the maturity requirement or the requirement that scheduled repayments shall be in amounts at least equal to those made in a previous year, and with respect to which the ap­ (3) (i) bears on its face, in bold-face type, propriate Federal bank regulatory agency has de­ the following: “This obligation is not a de­ termined that exigent circumstances require the posit and is not insured by the Federal Deposit issuance of such obligations without regard to the Insurance Corporation”; provisions of this Part; or (iii) was issued or is subordinated to the claims of depositors, is publicly offered before June 30, 1970, with an unsecured, and is ineligible as collateral for a loan original maturity of more than two years; or by the issuing bank and also expressly states said provisions on its face; has an original maturity of sji 5)C jfi at least seven years, or, in the case of an obligation or issue that provides for any type of scheduled 2. Section 217.1 of Regulation Q is amended repayments of principal, has an average maturity7 as follows: of at least seven years8 and provides that once any such repayment of principal begins, all scheduled Section 217.1—Definitions repayments shall be made at least annually and the amount repaid in each year is no less than in the prior year ; is issued subject to a requirement (f) Deposits as including certain promissory that no repayment (other than a regularly sched­ notes and other obligations. For the purposes of this Part, the term “deposits” also includes a 7The “average maturity” of an obligation or issue repayable in scheduled periodic payments shall be the weighted average 9For the purposes of this Part, the “appropriate Federal bank of the maturities of all such scheduled repayments. regulatory agency” is the Comptroller of the Currency in the 8In a serial issue, the member bank may offer no note with case of a national bank and the Board of Governors in the a maturity of less than five years. case of a State member bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin □ July 1976 member bank’s liability on any promissory note, pursuant to a plan of merger, consolidation, reor­ acknowledgment of advance, due bill, or similar ganization, or other transaction where the issuer obligation (written or oral) that is issued or under­ will acquire either a majority of such shares of taken by a member bank principally as a means voting stock or all or substantially all of the assets of obtaining funds to be used in its banking busi­ of the entity whose assets are being acquired; and ness, except any such obligation that: has been approved by the appropriate Federal bank regulatory agency as an addition to the capital structure of the issuing bank; or (ii) meets all of the requirements in the preceding clause except (3)(i) bears on its face, in bold-face type, the the maturity requirement or the requirement that following: “This obligation is not a deposit and is not insured by the Federal Deposit scheduled repayments shall be in amounts at least Insurance Corporation”; equal to those made in a previous year; and with is subordinated to the claims of depositors, is respect to which the appropriate Federal bank unsecured, and is ineligible as collateral for a loan regulatory agency has determined that exigent cir­ by the issuing bank and also expressly states said cumstances require the issuance of such obliga­ provisions on its face; has an original maturity of tions without regard to the provisions of this Part; at least seven years, or , in the case of an obliga­ or (iii) was issued or publicly offered before June tion or issue that provides for any type of sched­ 30, 1970, with an original maturity of more than uled repayments of principal, has an average ma­ two years; or turity6 of at least seven years7 and provides that once any such repayment of principal begins, all scheduled repayments shall be made at least an­ 3. As an incident to these amendments, foot­ nually and the amount repaid in each year is no notes are renumbered as follows: less than in the prior year; is issued subject to a. In Regulation D (12 CFR 204), footnotes 5a, a requirement that no repayment (other than a 6, 7, and 8 are renumbered 6, 10, 11, and 12, regularly scheduled repayment already approved respectively. by the appropriate Federal bank regulatory b. In Regulation Q (12 CFR 217), footnotes 5a, agency), including but not limited to a payment 6, 6a, and 7 are renumbered 9, 10, 11, and 12, pursuant to acceleration of maturity, may be made respectively. without the prior written approval of the appro­ priate Federal bank regulatory agency;8 is in an Hi 5k * sfc amount of at least $500, Except, That the appro­ In connection with its adoption of the regulatory priate Federal bank regulatory agency may ap­ amendments described herein, the Board has ap­ prove the issuance of an obligation that is less than proved issuance of criteria to be applied in evalu­ $500 if such lesser amount is necessary (a) to ating requests by State member banks for approval satisfy the preemptive rights of shareholders in the of new issues of subordinated notes and debentures case of a convertible debt obligation, (b) to main­ “as an addition to the capital structure of the tain a ratable unit offering to holders of preemptive issuing bank.” Proposed guideline criteria were rights in the case of an obligation issued exclu­ released for comment by the Board on July 2, sively as part of a unit including shares of stock 1975, along with the proposed regulatory amend­ which are subject to such preemptive rights, or ments, and the Board has revised the proposals (c) to satisfy shareholders’ ratable claims in the based upon its own findings and review of the case of an obligation issued wholly or partially comments received. in exchange for shares of voting stock or assets Application of the criteria adopted today is intended to promote the accumulation by debt-is­ suing State member banks of an adequate cushion of equity capital, protect against excessive con­ 6The “average maturity” of an obligation or issue repayable in scheduled periodic payments shall be the weighted average centrations of debt repayment in any one year, and of the maturities of all such scheduled repayments. prevent the inclusion of terms in such issues that 7In a serial issue, the member bank may offer no note with could be regarded as in conflict with safe and a maturity of less than five years. 8For the purposes of this Part, the “appropriate Federal bank sound banking practices. The Board believes that regulatory agency” is the Comptroller of the Currency in the publication of the criteria will enable banks to case of a national bank and the Board of Governors in the case of a State member bank. better plan their financing alternatives. In applying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 603 these criteria to a proposed issue, the Board will 3. Retained net income. A State member bank consider a full range of financial and other data. proposing to issue subordinated debt should dem­ onstrate that its recent level of retained net income, Criteria for Evaluating a Subordinated Debt viewed in conjunction with intended dividend pol­ Issue as an Addition to the Capital Structure icy, would exceed annual pro forma amortization of a State Member Bank on all subordinated notes and debentures by a sufficient margin to assure that bank’s ability to In evaluating a bank’s capacity to issue debt replace each debt issue with equity by maturity.3 under the following criteria, the Board will take 4. Avoidance of debt repayment concentrations. into account the full range of financial and other A State member bank proposing to issue subordi­ information available to the Board regarding the nated debt should avoid excessive concentration applicant. Such indicators and considerations in­ of debt repayment in any one year. clude the recent trend and stability of earnings, 5. Approval of interbank debt transactions. In impact of unusual income and expense develop­ general, the Board does not intend to approve as ments on recent earnings, recent acquisitions or an addition to the issuing bank’s capital structure mergers through purchase of assets, prospective a subordinated note or debenture issued by a State growth of the bank, quality of management, qual­ member bank directly or indirectly (through a ity of assets, earnings coverage of loan losses, holding company or otherwise) to a banking orga­ sensitivity of interest income and expense to nization other than its parent bank holding com­ changes in market rates, degree of reliance on pany where that issue, together with other subor­ potentially volatile sources of funds, and the rela­ dinated debt outstanding at that bank and held by tive strength of earnings of nonbank affiliates or such banking organizations, would exceed $2 mil­ subsidiaries. The bank’s need for additional capital lion unless specifically authorized as such an addi­ and the accessibility of additional equity also will tion by the Board of Governors upon a presentation be taken into account. and finding of compelling circumstances.4 1. Maximum ratio of debt to equity. The total 6. Covenants in conflict with safe and sound amount of subordinated notes and debentures out­ banking practices. No indenture or other contract standing, including the debt proposed to be issued covering the issuance of a subordinated note or but excluding any debt to be retired out of the proceeds of the new issue, should not exceed 50 percent of a bank’s equity capital base at time of issuance of the new debt.1 However, banks with significant asset or management problems gener­ issue equal to annual interest charges before taxes on the proposed issue. ally would not be presumed to be entitled to issue “Fixed charges” is defined as annual interest charges before debt capital up to the 50 per cent ceiling. taxes on all existing debt, net of debt to be retired out of 2. Earnings coverage of fixed charges. A State the proceeds of the new issue, plus those on the debt proposed to be issued. Fixed charges on existing debt would include member bank proposing to issue subordinated debt annual interest on all outstanding mortgage debt and -subordi­ should demonstrate that its recent income record nated notes and debentures, plus the annual interest component in any payments, net of sublease income, under lease contracts is sufficient to provide abundant assurance of that having an original maturity of one year or more (or if the bank’s continuing ability to pay the additional interest component is not readily ascertainable, one-third of fixed charges out of current earnings.2 annual payments net of sublease income under such contracts may be substituted). 3 Definitions: “Retained net income” is defined as net income after taxes minus dividends declared on common and preferred stock. In most circumstances banks which have issued additional shares of equity capital would receive credit for these new issues as if they had been part of retained net income. *A bank’s equity capital base, for purposes of this test, is “Pro forma amortization” is calculated for each issue of considered to include capital stock, surplus, undivided profits, subordinated debt, including the proposed new issue but ex­ capital reserves, and all reserves for losses on loans, including cluding debt to be retired out of the proceeds of the new issue, any related deferred tax liability. by dividing the original amount of the issue by the number 2 Definitions: of years from date of issue to maturity. Total pro forma “Income” is defined as income before taxes and before fixed amortization would be the sum of annual pro forma amortiza­ charges, including securities gains and losses, excluding ex­ tion for all such subordinated debt issues. traordinary charges and credits, and adjusted where necessary 4“Banking organization,” for purposes of this criterion, is to reflect actual net loan loss experience (charge-offs less defined as any commercial bank, mutual savings bank, bank recoveries) rather than other “provision for loan losses,” plus holding company, or nonbank affiliate of a bank holding an adjustment for earnings on the proceeds of the proposed company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin □ July 1976 debenture by a State member bank shall include obtains approval from the Board and issues a $10 any covenants, restrictions, or other terms that are million sinking fund issue. $1 million of the notes determined by the Board to be inconsistent with are to be called on August 1, 1979, and $1 million safe and sound banking practices. Examples of per year thereafter until all remaining notes are such terms are those regarded as impairing the called on August 1, 1986. The table below sum­ ability of the bank to comply with statutory or marizes Bank X’s issue and illustrates the calcula­ regulatory requirements regarding disposition of tion of average maturity. assets or incurrence of additional debt, limiting the ability of the Board or the chartering authority (1) (2) (3) to take any necessary action to resolve a problem Maturity Amount Maturing Weighted Mati bank situation, or unduly interfering with the abil­ in Years ($ million) (1) x (2) ity of the bank to conduct normal banking opera­ 1 0 0 tions. 2 0 0 sjs sfc >■' 5k 3 1 3 4 1 4 Interpretation of 5 1 5 Regulation Q 6 1 6 7 1 7 Serial, sinking fund redemption, and amortized 8 1 8 issues as capital. On June 16, 1976, the Board 9 1 9 amended § 204.1(f)(3) of Regulation D and § 10 3 30 217.1(f)(3) of Regulation Q to permit member banks to issue subordinated notes and debentures 10 72 with weighted average maturities of at least seven years. When such issues satisfy all of the require­ Average Maturity = ments of those sections and have been approved Sum of Weighted Maturities 72 by the appropriate regulatory agencies, funds ob­ Amount of issue 10 tained from such issues will be regarded as an = 7.2 years addition to capital and exempt from deposit treat­ ment. In connection with those amendments, this Hence, Bank X’s issue has an “average maturity interpretation is intended to describe more fully of at least 7 years,” and satisfies the provisions the method for the computation of weighted of the Regulation. average maturity. Member banks should compute the weighted average maturity on serial issues, sinking fund issues, and amortized obligations as follows: (1) Rules Regarding Delegation of Authority determine to the nearest month the maturity from The Board of Governors has amended its Rules the initial offering date of each set of notes matur­ Regarding Delegation of Authority to delegate to ing or to be called on the same day, or of each the Secretary of the Board authority to conform scheduled repayment in the case of an amortized its published rules to administrative changes in the issue, and multiply that maturity by the amount structure of the Board’s staff. to mature or be redeemed or repaid on that day; (2) sum the weighted maturities computed in (1) Effective June 23, 1976, Section 265.2(a)(16) above for the entire issue; and (3) divide the sum is added to read as follows: * calculated in (2) above by the total amount of the issue, thus obtaining the average maturity. The Section 265.2—Specific average maturity must in all cases be equal to or Functions Delegated to Board greater than seven years unless specific authori­ Employees and to Federal Reserve Banks zation has been obtained from the appropriate (a) The Secretary of the Board (or, in his Federal bank regulatory agency. absence, the Acting Secretary) is authorized: As an example of the procedure described above, assume that on July 31, 1976, Bank X * * * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 605 (16) Under the provisions of Section 11 (i) of Order Granting Temporary the Federal Reserve Act (12 U.S.C. 248(i)) to Suspension of Early Withdrawal Penalty conform references to administrative positions or units in outstanding rules and regulations of the The Board has suspended temporarily the Reg­ Board to changes in the administrative structure ulation Q penalty for the withdrawal of time de­ of the Board. posits prior to maturity from member banks (12 CFR 217.4(d)) for depositors affected by the col­ lapse of the Teton Dam on June 5, 1976. On June Interpretation of Regulation D 6, 1976, the President, pursuant to Section 301 Cash Items in the Process of Collection. As a of the Disaster Relief Act of 1974 (42 U.S.C. result of involvement in automated arrangements 5141), designated the following Idaho counties a in which payment information is contained on major disaster area: Bingham, Bonneville, Fre­ magnetic tape, paper listings, etc., rather than mont, Jefferson, and Madison. The Board regards checks, a number of member banks have inquired the President’s action as recognition by the Federal as to the proper reserve requirement treatment for Government that a disaster of major proportions payroll, Federal recurring payments, and other has occurred. The President’s designation enables items received for credit to a customer’s account victims of the disaster to qualify for special emer­ in such arrangements. gency financial assistance. The Board believes it Where payment information is sent to a member appropriate to provide an additional measure of bank prior to the date credit is passed for the item, assistance to flood victims by temporarily some banks have been crediting their customers suspending the Regulation Q early withdrawal on the date prior to that payment date to ensure penalty.1 The Board’s action permits a member that such deposit is available to the depositor at bank to pay a time deposit before maturity without opening of business on the payment date. Such imposing this penalty upon a showing that the procedure, however, results in an increase in re­ depositor has, in fact, suffered property or other ported member bank deposits even though the financial loss in the disaster area as a result of member bank does not itself receive credit for the the collapse of the Teton Dam. A member bank funds until the next day. Some member banks have should obtain from a depositor seeking to with­ inquired as to whether the account “cash items draw a time deposit pursuant to this action a signed in the process of collection” may be debited in application describing fully the disaster-related an amount equal to the amount credited on the loss. This application should be approved and date prior to the payment date. certified by an officer of the bank. This action will Section 19(g) of the Federal Reserve Act (12 be retroactive to June 6, 1976, and will remain U.S.C. 465) permits a member bank to deduct in effect until 12 midnight December 31, 1976. “cash items in the process of collection” as de­ Section 19(j) of the Federal Reserve Act (12 fined by the Board. Section 204.2(b) of Regulation U.S.C. 371b) provides that no member bank shall D provides that cash items may be deducted from pay any time deposit before maturity except upon gross demand deposits, and § 204.1(h)(3) defines such conditions and in accordance with such rules cash items in the process of collection as “those and regulations as may be prescribed by the Board. customarily cleared or collected by banks as cash Pursuant to § 19(j) the Board has determined it items.” The deduction was intended, in part, to to be in the overriding public interest to suspend avoid the “double counting” by member banks the penalty provision prescribed in § 217.4(d) of of their deposits subject to reserves. Furthermore, Regulation Q for the benefit of depositors suffering due to the spread of automated arrangements, it disaster-related losses within those counties of the has become customary to treat such automated State of Idaho officially designated a major disaster payments as “cash items.” Because double area by the President. This action will be effective counting would arise in circumstances described from June 6, 1976, until 12 midnight December above, and in view of the fact that automated Section 217.4(d) of Regulation Q provides that where a arrangement are now customary practices, the time deposit, or any portion thereof, is paid before maturity, Board believes that banks are permitted to debit a member bank may pay interest on the amount withdrawn the account “cash items in the process of collec­ at a rate not to exceed that currently prescribed for a savings deposit and that the depositor shall forfeit three months of tion” in such amounts. interest payable at such rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 Federal Reserve Bulletin □ July 1976 31, 1976. The Board, in granting this temporary published in the Federal Register on February 7, suspension, encourages member banks to permit 1968 (33 F.R. 2721), a notice of adoption, effec­ penalty-free withdrawal before maturity of time tive March 11, 1968, of, inter alia, Federal Re­ deposits for depositors who have suffered disas­ serve Form U-l, “Statement of Purpose of the ter-related losses within the designated disaster Proceeds of a Stock-Secured Extension of Credit area. by a Bank,” for use by banks in implementing In view of the urgent need to provide immediate and fulfilling the requirements of that Section. assistance to relieve the financial hardship being In 1969, the Board adopted an amendment to suffered by persons directly affected by the severe Section 221.3(a), effective July 8, 1969, to reduce damage and destruction occasioned by the collapse the time required for retaining Federal Reserve of the Teton Dam, the Board finds that good cause Form U-l (34 F.R. 9203, June 11, 1969) and exists for dispensing with notice and public par­ adopted a revised Form U-l to reflect such change ticipation referred to in section 553(b) of Title 5 (34 F.R. 12330). of the United States Code with respect to this Since the last revision of Federal Reserve Form action and that public procedure with regard to U-l in 1969, substantial experience has been this action would be contrary to the public interest. gained by banks, law enforcement agencies and Because of the need to provide assistance as soon System staff in the use of the form. Such experi­ as possible and because the Board’s action relieves ence leads to the conclusion that certain revisions a restriction, the Board finds that there is good of Form U-l are necessary and appropriate, if it cause to make the action effective immediately. is to continue to serve as a useful evidentiary tool By order of the Board of Governors, June 25, in maintaining compliance with provisions of 1976. Regulation U. Generally, the revised Form U-l will embody Credit by Banks for the Purpose of the following changes: Purchasing or Carrying Margin Stocks (1) The addition of caveats and definitional aids to prospective borrowers respecting their potential Pursuant to the authority of Section 7 of the criminal liability under various statutes and the Securities Exchange Act of 1934 (15 U.S.C. 78g), provisions of the Board’s Regulation X. The pur­ the Board of Governors has adopted a revised pose of Regulation X, which was adopted by the Federal Reserve Form U-l, “Statement of Purpose Board on November 1, 1971, is to prevent infusion of a Stock-Secured Extension of Credit by a into United States securities markets of unregu­ Bank,” effective September 1, 1976.1 This form lated credit obtained in circumvention of the pro­ is for use by banks in fulfilling certain require­ visions of the Board’s margin regulations, or by ments of Part 221 of Title 12 (Regulation U). borrowers falsely certifying the purpose of a loan, On February 7, 1968, the Board published a or otherwise willfully and intentionally evading the notice in the Federal Register (33 F.R. 2702) provisions of those regulations. announcing, inter alia, that, effective March 11, (2) A revision of the format to provide increased 1968, Section 221.3(a) of Regulation U is assistance to law enforcement agencies and bank amended to add a requirement that a bank shall examiners by requiring, inter alia, a borrower to obtain and keep for a prescribed period in connec­ specifically state whether or not a proposed stocktion with any stock-secured loan, on a form pre­ secured extension of credit is for the purpose of scribed by the Board, a statement relating to the purchasing or carrying margin stock. purpose of the loan by (i) the customer and (ii) (3) Inclusion of a requirement for affirmative the officer extending the credit. The Board com­ representation by borrowers respecting the integ­ mented that the changes in Section 221.3(a) of rity of the collateral offered as security for an Regulation U were designed to make uniform the extension of credit, and a requirement that a duly evidentiary requirements of such section. authorized officer of the lending bank shall under­ Pursuant to and simultaneously with the notice take, in addition to other required procedures, an of amendment to Section 221.3(a), the Board examination of the physical aspects of the securi­ ties offered as collateral and perform such valida­ tion procedures with respect thereto as are man­ dated by bank policy and governmental regula­ Copies of the Federal Reserve Form U-l are available on request to any Federal Reserve Bank. tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 607 Equal Credit Opportunity the Federal Reserve System, Washington, D.C. Truth in Lending 20551, within thirty days of the publication of such interpretation in the Federal Register. Each re­ The Board of Governors has amended its Regu­ quest for reconsideration must contain a statement lations B and Z to designate the Director and other setting forth in full the reasons why the person officials of the Office of Saver and Consumer making the request believes reconsideration would Affairs as officials duly authorized to issue, at their be appropriate, and must specify and discuss the discretion, interpretations of Regulations B and Z. applicability of the relevant facts, statute and reg­ 1. Effective July 30, 1976, 12 CFR Part 202 ulations. Within fifteen business days of receipt is amended by revising § 202.13(b), redesignating of such request for reconsideration, a response § 202.13(c) as § 202.13(d) and adding a new § granting or denying the request will be sent to the 202.13(c). Section 202.13 reads as follows: person making the request, or an acknowl­ Section 202.13—Penalties and Liabilities edgement will be sent which sets a reasonable time within which such response will be given. (3) Pursuant to § 706(e) of the Act, the Board has designated the Director and other officials of (b) Section 706(e) relieves a creditor from civil the Office of Saver and Consumer Affairs as offi­ liability resulting from any act done or omitted cials “duly authorized” to issue, at their descrein good faith in conformity with any rule, regula­ tion, official staff interpretations of this Part. This tion or interpretation by the Board of Governors designation shall not be interpreted to include of the Federal Reserve System, or with any inter­ authority to approve particular creditors’ forms in pretation or approval issued by a duly authorized any manner. official or employee of the Federal Reserve Sys­ (4) The type of interpretation issued will be tem, notwithstanding that after such act or omis­ determined by the Board and the designated offi­ sion has occured, such rule, regulation or inter­ cials by the following criteria: pretation is amended, rescinded or otherwise de­ (i) Official Board interpretations will be issued termined to be invalid for any reason. upon those requests which involve potentially (c)(1) Any request for formal Board intcipreta- controversial issues of general applicability deal­ tion or official staff interpretation of Regulation ing with substantial 'ambiguities in this Part and B must be addressed to the Director of the Office which raise significant policy questions. of Saver and Consumer Affairs, Board of Gover­ (ii) Official staff interpretations will be issued nors of the Federal Reserve System, Washington, upon those requests which, in the opinion of the D.C. 20551. Each request for interpretation must designated officials, require clarification of techni­ contain a complete statement, signed by the person cal ambiguities in this Part or which have no making the request or a duly authorized agent, of significant policy implications. all relevant facts of the transaction or credit ar­ (iii) Unofficial staff interpretations will be issued rangement relating to the request. True copies of where the protection of § 706(e) of the Act is all pertinent documents must be submitted with neither requested nor required, or where time the request. The relevance of such documents strictures require a rapid response. must, however, be set forth in the request and the (d) [Redesignated.] documents must not merely be incorporated by 2. Effective July 30, 1976, 12 CFR Part 226 reference. The request must contain an analysis is amended by revising § 226.1(c) and adding a of the bearing of the facts on the issues and new § 226.1(d). Section 226.1 reads as follows: specifying the pertinent provisions of the statute Section 226.1— and regulation. Within fifteen business days of Authority, Scope, Purpose, Etc. receipt of the request, a substantive response will be sent to the person making the request or an acknowledgement will be sent which sets a rea­ sonable time within which a substantive response (c) Penalties and liabilities. Section 112 of the will be given. Act provides criminal liability for willful and (2) Any request for reconsideration of an official knowing failure to comply with any requirement staff interpretation of Regulation B must be ad­ imposed under the Act and this Part. Section 134 dressed to the Secretary, Board of Governors of provides for criminal liability for certain fraudulent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Federal Reserve Bulletin □ July 1976 activities related to credit cards. Section 130 pro­ the Federal Reserve System, Washington, D.C. vides for civil liability in individual or class actions 20551, within thirty days of the publication of such for any creditor who fails to comply with any interpretation in the Federal Register. Each re­ requirement imposed under Chapter 2 or Chapter quest for reconsideration must contain a statement 4 of the Act and the corresponding provisions of setting forth in full the reasons why the person this Part. Section 130 also provides creditors a making the request believes reconsideration would defense against civil and criminal liability for any be appropriate, and must specify and discuss the act done or omitted in good faith in conformity applicability of the relevant facts, statute and reg­ with the provisions of this Part or any interpreta­ ulations. Within fifteen business days of receipt tion thereof by the Board, or with any interpreta­ of such request for reconsideration, a response tions or approvals issued by a duly authorized granting or denying the request will be sent to the official or employee of the Federal Reserve Sys­ person making the request, or an acknowl­ tem, notwithstanding that after such act or omis­ edgement will be sent which sets a reasonable time sion has occured, such rule, regulation or inter­ within which such response will be given. pretation is amended, rescinded or otherwise de­ (3) Pursuant to § 130(f) of the Act, the Board termined to be invalid for any reason. Section 130 has designated the Director and other officials of further provides that a multiple failure to disclose the Office of Saver and Consumer Affairs as offi­ in connection with a single account shall permit cials “duly authorized” to issue, at their discre­ but a single recovery. Section 115 provides for tion, official staff interpretations of this Part. This civil liability for an assignee of an original creditor designation shall not be interpreted to include where the original creditor has violated the disclo­ authority to approve particular creditors’ forms in sure requirements and such violation is apparent any manner. on the face of the instrument assigned, unless the (4) The type of interpretation issued will be assignment is involuntary. Pursuant to § 108 of determined by the Board and the designated offi­ the Act, violations of the Act or this Part constitute cials by the following criteria: violations of other Federal laws which may pro­ (i) Official Board interpretations will be issued vide further penalties. upon those requests which involve potentially (d) Issuance of interpretations (1) Any request controversial issues of general applicability deal­ for formal Board interpretation or official staff ing with substantial ambiguities in this Part and interpretation of Regulation Z must be addressed which raise significant policy questions. to the Director of the Office of Saver and Con­ (ii) Official staff interpretations will be issued sumer Affairs, Board of Governors of the Federal upon those requests which, in the opinion of the Reserve System, Washington, D.C. 20551. Each designated officials, require clarification of techni­ request for interpretation must contain a complete cal ambiguities in this Part or which have no statement, signed by the person making the request significant policy implications. or a duly authorized agent, of all relevant facts (iii) Unofficial staff interpretations will be issued of the transaction or credit arrangement relating where the protection of § 130(f) of the Act is to the request. True copies of all pertinent docu­ neither requested nor required, or where time ments must be submitted with the request. The strictures require a rapid response. relevance of such documents must, however, be set forth in the request and the documents must Securities Credit Transactions not merely be incorporated by reference. The The Board of Governors has amended its Regu­ request must contain an analysis of the bearing lations G, T, and U to revise the criteria for of the facts on the issues and it must specify the inclusion and continued inclusion on the List of pertinent provisions of the statute and regulation. OTC Margin Stocks in view of significant changes Within fifteen business days of receipt of the which have occurred in the over-the-counter request, a substantive response will be sent to the (OTC) market. person making the request or an acknowledgement Effective August 6, 1976 sections 207.5, 220.4, will be sent which sets a reasonable time within and 221.4, are amended as follows: which a substantive response will be given. (2) Any request for reconsideration of an official Section 207.5—Supplement staff interpretation of Regulation Z must be ad­ dressed to the Secretary, Board of Governors of * * * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 609 (d) Requirements for inclusion on list of OTC (h) Requirements for inclusion on list of OTC margin stock. Except as provided in subparagraph margin stock. Except as provided in subparagraph (4) of § 207.2(f), such stock shall meet the re­ (4) of § 220.2(e), OTC margin stock shall meet quirements that: the requirements that: (2) Four or more dealers stand willing to, and (2) Four or more dealers stand willing to, and do in fact, make a market in such stock including do in fact, make a market in such stock including making regularly published bona fide bids and making regularly published bona fide bids and offers for such stock for their own accounts, or offers for such stock for their own accounts, or the stock is registered on a securities exchange the stock is registered on a securities exchange that is exempted by the Securities and Exchange that is exempted by the Securities and Exchange Commission from registration as a national se­ Commission from registration as a national se­ curities exchange pursuant to section 5 of the curities exchange pursuant to section 5 of the Securities Exchange Act of 1934 (15 U. S. C. 78e). Securities Exchange Act of 1934 (15 U.S.C. 78e), (3) There are 1,200 or more holders of record, (3) There are 1,200 or more holders of record, as defined in SEC Rule 12g5-l (17 C.F.R. § as defined in SEC Rule 12g5-l (17 C.F.R. § 240.12g5-l), of the stock who are not officers, 240.12g5-l), of the stock who are not officers, directors, or beneficial owners of 10 per cent or directors, or beneficial owners of 10 per cent or more of the stock, or the average daily trading more of the stock, or the average daily trading volume of such stock, as determined by the Board, volume of such stock, as determined by the Board, is at least 500 shares. is at least 500 shares. (9) The minimum average bid price of such (9) The minimum average bid price of such stock, as determined by the Board, is at least $5 stock, as determined by the Board, is at least $5 per share, and per share, and (i) Requirements for continued inclusion on (e) Requirements for continued inclusion on list of OTC margin stock. Except as provided list of OTC margin stock. Except as provided in subparagraph (4) of § 220.2(e), OTC margin in subparagraph (4) of § 207.2(f), such stock shall stock shall meet the requirements that: meet the requirements that: (3) There continue to be 800 or more holders (3) There continue to be 800 or more holders of record, as defined in SEC Rule 12g5-l (17 of record, as defined in SEC Rule 12g5-l (17 C.F.R. § 240.12g5-l), of the stock who are not C.F.R. § 240.12g5-l), of the stock who are not officers, directors, or beneficial owners of 10 per officers, directors, or beneficial owners of 10 per cent or more of the stock, or the average daily cent or more of the stock, or the average daily trading volume of such stock, as determined by trading volume of such stock, as determined by the Board, is at least 300 shares the Board, is at least 300 shares (8) The minimum average bid price of such (8) The minimum average bid price of such stock, as determined by the Board, is at least $3 stock, as determined by the Board, is at least $3 per share, and per share, and * * * * * Section 220.2—Supplement Section 221.4—Supplement * * * * * * * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Federal Reserve Bulletin □ July 1976 (d) Requirements for inclusion on list of OTC stock, as determined by the Board, is at least $5 margin stock. Except as provided in subparagraph per share, and (4) of § 221.3(d), OTC margin stock shall meet the requirements that: (e) Requirements for continued inclusion on list of OTC margin stock. Except as provided (2) Four or more dealers stand willing to, and in subparagraph (4) of § 221.3(d), OTC margin do in fact, make a market in such stock including stock shall meet the requirements that: making regularly published bona fide bids and offers for such stock for their own accounts, or the stock is registered on a securities exchange (3) There continue to be 800 or more holders that is exempted by the Securities and Exchange of record, as defined in SEC Rule 12g5-l (17 Commission from registration as a national se­ C.F.R. § 240.12g5-l), of the stock who are not curities exchange pursuant to section 5 of the officers, directors, or beneficial owners of 10 per Securities Exchange Act of 1934 (15 U.S.C. 78e), cent or more of the stock, or the average daily (3) There are 1,200 or more holders of record, trading volume of such stock, as determined by as defined in SEC Rule 12g5-l (17 C.F.R. § the Board, is at least 300 shares 240.12g5-l), of the stock who are not officers, * * * * * directors, or beneficial owners of 10 per cent or more of the stock, or the average daily trading (8) The minimum average bid price of such volume of such stock, as determined by the Board, stock, as determined by the Board, is at least $3 is at least 500 shares. per share, and (9) The minimum average bid price of such * * * * * Bank Holding Company and Bank M erger Orders Issued by the Board of Governors Orders Under Section 3 Applicant is a nonoperating corporation organ­ of Bank Holding Company Act ized for the purpose of becoming a bank holding company through acquisition of Bank. Bank, with deposits of $8 million,1 representing one tenth of Bankshares of Hawley, Inc., 1 per cent of the total commercial bank deposits Hawley, Minnesota in Minnesota, is the twelfth largest of 23 banking Ordering Denying organizations within the relevant banking market.2 Formation of Bank Holding Company Bank holds 1.62 per cent of the total commercial bank deposits in this market. Inasmuch as the Bankshares of Hawley, Inc., Hawley, Minne­ proposal represents merely a restructuring of sota, has applied for the Board’s approval under Bank’s ownership, the acquisition of Bank by § 3(a)(1) of the Bank Holding Company Act (12 Applicant would have no adverse effects on com­ U.S.C. § 1842(a)(1)) of formation of a bank petition within the relevant banking market. holding company through acquisition of 95.7 per The financial and managerial resources and cent of the voting shares of State Bank of Hawley, prospects of the newly formed Applicant are gen­ Hawley, Minnesota (“Bank”). erally dependent upon these conditions as they Notice of the application, affording opportunity relate to Bank. However, Applicant proposes to for interested persons to submit comments and assume debt incurred by its principals. The record views, has been given in accordance with § 3(b) indicates that Bank is in need of additional capital, of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of XA11 banking data are as of June 30, 1975. the factors set forth in § 3(c) of the Act (12 U.S.C. 2 The relevant banking market is approximated by the Fargo-Moorhead SMSA: Clay County, Minnesota, and Cass § 1842(c)). County, North Dakota. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 611 and although Applicant proposes to increase Benson Bancshares, Inc., Bank’s capital, it appears that the servicing of Benson, Minnesota Applicant’s substantial acquisition debt over a Order Suspending Further 12-year period through Bank’s dividends can be Consideration of Application to expected to further weaken Bank’s capital posi­ Become A Bank Holding Company tion. In addition, it appears that the two individuals Benson Bancshares, Inc., Benson, Minnesota, who would own 78 per cent of the outstanding has applied for the Board’s approval under § shares of Applicant would not be in a sufficiently 3(a)(1) of the Bank Holding Company Act (12 strong financial position to provide assistance to U.S.C. § 1842(a)(1)) to become a bank holding Bank in the event problems arose in servicing the company through acquisition of 88 per cent or acquisition debt or in meeting other unforeseen more of the voting shares of Swift County Bank, financial needs. In view of the limited financial Benson, Minnesota. flexibility of Applicant and its two principals, and Notice of the application, affording opportunity the strain that would be placed on Bank’s capital for interested persons to submit comments and position as a result of Applicant’s debt servicing views, has been given in accordance with § 3(b) requirements, the Board is of the opinion that of^the Act. During the course of its consideration considerations relating to the financial aspects of of the instant application, the Board has become Applicant’s proposal weigh against approval of the aware of certain facts that raise questions whether application. provisions of the Securities Exchange Act of 1934 Applicant indicates that banking services cur­ (15 U.S.C. § 78(a) et seq.) were fully observed rently rendered the community by Bank will re­ in the acquisition of shares of Bank by the main unchanged upon consummation of the pro­ principals of Applicant. These questions may have posal. Accordingly, considerations relating to the a bearing on the Board’s evaluation of the mana­ convenience and needs of the community to be gerial resources of Applicant and Bank. Accord­ served do not outweigh the adverse findings with ingly, the Board has determined that advice from respect to the financial factors involved in Appli­ the Securities and Exchange Commission, as to cant’s proposal. whether certain facts in the record on the instant On the basis of all the circumstances of this application give rise to such a violation, is neces­ case and the facts of record, the Board concludes sary to make a proper assessment of the managerial that the acquisition debt involved in this proposal resources of Applicant and Bank and is therefore presents adverse circumstances bearing on the fi­ necessary to the Board’s ultimate decision of the nancial condition and prospects of Applicant and application. Bank. Such adverse factors are not outweighed by Accordingly, further consideration of the appli­ any procompetitive effects or by benefits to the cation is hereby suspended pending receipt of the convenience and needs of the communities to be views of the Securities and Exchange Commission served. Accordingly, it is the Board’s judgment which today have been solicited. that approval of the application to become a bank By order of the Board of Governors, effective holding company would not be in the public inter­ June 7, 1976. est and the application should be denied. On the basis of the record, the application is Voting for this action: Chairman Burns and Gover­ denied for the reasons summarized above. nors Gardner, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Governor Wallich. By order of the Board of Governors, effective June 25, 1976. (Signed) G riffith L. G arwood, [seal] Assistant Secretary of the Board. El Dorado Bancshares, Inc., Prairie Village, Kansas Voting for this action: Vice Chairman Gardner and Governors Wallich, Coldwell, and Lilly. Absent and Order Approving Formation of not voting: Chairman Burns and Governors Jackson and Bank Holding Company Partee. (Signed) Griffith L. Garwood, El Dorado Bancshares, Inc., Prairie Village, [seal] Assistant Secretary of the Board. Kansas, has applied for the Board’s approval under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin □ July 1976 § 3(a)(1) of the Bank Holding Company Act (12 proposal, it appears that Applicant will be able U.S.C. § 1842(a)(1)) of formation of a bank to service this debt without impairing the financial holding company through acquisition of 98 per condition of Bank during that period. In addition, cent or more of the voting shares of Citizens State Applicant’s principals have demonstrated their Bank of El Dorado, El Dorado, Kansas (“Bank”). ability to service the debt of the three other one- Notice of the application, affording opportunity bank holding companies under their control with­ for interested persons to submit comments and out impairing the capital of those companies’ re­ views, has been given in accordance with § 3(b) spective subsidiary banks. Accordingly, the Board of the Act. The time for filing comments and views concludes that considerations relating to the bank­ has expired, and the Board has considered the ing factors are regarded as being consistent with application and all comments received in light of approval of the application. Although consumma­ the factors set forth in § 3(c) of the Act (12 U.S.C. tion of the transaction would effect no immediate § 1842(c)). changes in the services that are being offered by Applicant is a corporation organized under the Bank, the Board regards considerations relating to laws of the State of Kansas for the purpose of the convenience and needs of the community to becoming a bank holding company through the be served as being consistent with approval. It is acquisition of Bank. Bank (with deposits of $19 the Board’s judgment that consummation of the million) is the 123rd largest of 614 commercial holding company formation would be in the public banks operating in the State of Kansas, and con­ interest and that the application to acquire Bank trols approximately .2 per cent of the total deposits should be approved. held by commercial banks in that State.1 In the On the basis of the record, the application is relevant banking market (approximated by Butler approved for the reasons summarized above. The County, Kansas), Bank is the second largest of transaction shall not be made (a) before the thir­ 13 commercial banks operating in the market and tieth calendar day following the effective date of controls approximately 15.1 per cent of market this Order, or (b) later than three months after the deposits.2 Through three other one-bank holding effective date of this Order, unless such period companies, certain principals of Applicant also is extended for good cause by the Board, or by have interests in three banks in Kansas. However, the Federal Reserve Bank of Kansas City pursuant the three other banks in which principals of Ap­ to delegated authority. plicant are involved are located in different bank­ By order of the Board of Governors, effective ing markets and do not compete with Bank to any June 14, 1976. significant extent. Furthermore, inasmuch as the Voting for this action: Chairman Burns and Gover­ present proposal represents a corporate reorgani­ nors Wallich, Coldwell, Partee, and Lilly. Absent and zation of the ownership of Bank, and Applicant not voting: Governors Gardner and Jackson. has no present banking subsidiaries, it appears that the acquisition of Bank by Applicant would not (Signed) G riffith L. G arwood, have any significant adverse effect upon either [seal] Assistant Secretary of the Board. existing or potential competition within the rele­ Fiduciary Investment Company of New Jersey, vant market. Accordingly, on the basis of record, Newark, New Jersey the Board concludes that competitive consid­ erations are consistent with approval of the appli­ Order Approving cation. Formation of Bank Holding Company The financial condition, managerial resources, and future prospects of Applicant are entirely Fiduciary Investment Company of New Jersey, dependent upon the operation of Bank, and are Newark, New Jersey (“Applicant”), has applied regarded as being satisfactory. Although Applicant for the Board’s approval under § 3(a)(1) of the will incur acquisition debt in connection with this Bank Holding Company Act (“Act”) (12 U.S.C. § 1842(a)(1)) of formation of a bank holding company through acquisition of 50.2 per cent or more of the voting shares of Security National 1 All banking data are as of June 30, 1975, unless otherwise Bank of New Jersey, Newark, New Jersey indicated. (“Bank”). 2Of these 13 banks, three (including the market’s largest) are located in the city of El Dorado, Kansas. Notice of the application, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 613 for interested persons to submit comments and proposed expansion of Bank’s trust department views, has been given in accordance with § 3(b) services and that the income from this expansion of the Act. The time for filing comments and views should over time improve Bank’s profitability, has expired, and the Board has considered all which has been poor in recent years, and future comments received, including those of two stock­ prospects. In addition, Applicant has stated that holders of Bank, Messrs. Joseph Dunn and Joseph it will engage as soon as possible a senior officer McCormack (“Protestants”), certain directors of to supervise Bank’s commercial banking opera­ Bank, and the Comptroller of the Currency tions and it would appear that Applicant possesses (“Comptroller”), in light of the factors set forth the resources to attract such additional manage­ in § 3(c) of the Act (12 U.S.C. § 1842(c)). ment. In the Board’s judgment, approval of this Applicant was formed for the purpose of be­ application should bring about an immediate im­ coming a bank holding company through the ac­ provement in Bank’s managerial resources and quisition of shares of Bank. Upon acquisition of will improve Bank’s future prospects. Accord­ those shares, Applicant would control the 107th ingly, it is the Board’s judgment that consid­ largest banking organization in New Jersey with erations relating to banking factors lend weight total deposits of approximately $26.1 million, toward approval of the application. representing 0.1 of 1 per cent of total deposits It does not appear that the convenience and held by commercial banks in the State.1 Bank is needs of the community to be served are not being the 22nd largest bank in the Greater Newark currently met. Applicant will not alter Bank’s banking market2 and holds slightly less than 0.6 present commercial banking services but will place of 1 per cent of the deposits held by commercial emphasis on greatly expanding Bank’s trust and banks in that market. Although Applicant is a fiduciary services. Considerations relating to the registered investment adviser, it presently manages convenience and needs of the community to be only the account of one of its shareholders, with served are thus consistent with approval of the a portfolio of about $4 million.3 In view of this application. fact, and since Applicant has no subsidiaries, it As noted above, the Board has received com­ appears that consummation of the proposal would ments from several parties with respect to this have no adverse effect on existing or potential application. The Comptroller has recommended competition or the concentration of banking re­ approval in view of Bank’s current lack of man­ sources in any relevant area. Accordingly, the agement and ownership direction. Ten of Bank’s Board concludes that competitive considerations twelve directors have also recommended approval are consistent with approval of the application. in view of Bank’s management problem. Although Bank’s capital base and liquidity ap­ Protestant Dunn, who died on May 22, 1976, pear good, Bank has an immediate need for expe­ requested the Board to consider allegations made rienced and capable management. Until such by him in a lawsuit charging Applicant and its management is provided, Bank’s overall condition officers with having violated various provisions of and future prospects cannot be regarded as satis­ Federal securities laws and regulations issued factory. Applicant will provide Bank with capable thereunder in their attempt to acquire control of management that has considerable successful ex­ Bank.4 In an opinion issued May 20, 1976, the perience in trust department operations and that United States District Court of the District of New will greatly expand Bank’s trust and fiduciary Jersey ruled in favor of Applicant and its principals services. In the Board’s judgment, it appears that on all issues raised by Protestant Dunn with one Applicant has the resources to bring about its exception: the Court determined that Applicant’s failure to include in its tender offer materials the amount of funds contributed by certain of its investors was a material omission.5 The Court thus 1A11 banking data are as of December 31, 1975. directed Applicant to amend its tender offer to the 2 The Greater Newark banking market is approximated by Essex County, Union County excluding the extreme southern portion, the eastern half of Morris County and a small portion of western Hudson County. 3 Applicant has not applied to retain its investment adviser activities under § 4 of the Act; upon consummation of the 4 In a letter of February 4, 1976, the Board denied Protestant proposal, Applicant will transfer its existing account to Bank’s Dunn’s request for a hearing on these issues. trust department and will cease engaging in investment adviser 5Dunn v. Fiduciary Inv. Co. of New Jersey, et al., Civil activities. No. 75-2203 (D.N.J., May 20, 1976). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Federal Reserve Bulletin □ July 1976 shareholders of Bank to indicate these additional With regard to Applicant’s stated intent to em­ facts. The Board regards the Court’s decision as phasize trust activities upon acquiring control of being dispositive of Protestant Dunn’s specific Bank, Protestant McCormack has questioned Ap­ objections regarding violations of Federal securi­ plicant’s ability to attract sufficient trust accounts ties laws and regulations and is of the opinion that to make this type of banking profitable in view the Court’s decision and other information of of Bank’s limited current involvement in trust record on this issue does not reflect adversely upon services. The Board is of the view that the experi­ Applicant’s managerial resources. ence and success of Applicant’s officers in the trust Protestant Dunn’s other primary objection was field justifies the conclusion that they are capable that Applicant had failed to disclose its controlling of significantly expanding Bank’s trust business. ownership. In particular, Protestant Dunn con­ While Protestant McCormack expressed other tended that Applicant would not, in fact, be con­ doubts concerning Applicant’s managerial re­ trolled by its president and executive vice pres­ sources, Bank’s profitability as a subsidiary of ident, who own the majority of Applicant’s voting Applicant, and the potential responsiveness of stock and who have the right to elect a majority Applicant to the community to be served, the of Applicant’s board of directors. Protestant Dunn Board believes that Applicant’s managerial re­ contended, without any documented support, that sources are satisfactory, that Bank’s profitability one or more of several institutions, including spe­ should improve under Applicant’s management cifically several foreign institutions, that have and that convenience and needs considerations are contributed almost all of Applicant’s capital in consistent with approval. It is the Board’s judg­ return for nonvoting stock, or one or more undis­ ment that consummation of the proposed transac­ closed owners of such institutions, would be con­ tion would be in the public interest and that the trolling or have the ability to control Applicant application should be approved. and Bank. Protestant McCormack has also ex­ On the basis of the record, the application is pressed similar concerns. It is clear from the record approved for the reasons set forth above. The of this application that none of Applicant’s passive transaction shall not be made (a) before the thir­ investors will be able to control Applicant by tieth calendar day following the effective date of reason of his ownership of non voting stock. In this Order or (b) later than three months after the addition, it appears from the record that there are effective date of this Order unless such period is no agreements between Applicant and its passive extended for good cause by the Board or by the investors, or any beneficial owner of any such Federal Reserve Bank of New York pursuant to investor, relating to the control of Applicant or delegated authority. Bank. This issue was also raised by Protestant By order of the Board of Governors, effective Dunn in the above-mentioned securities litigation, June 14, 1976. wherein, after exhaustive depositions, the Court Voting for this action: Vice Chairman Gardner and found that “[t]here is no demonstration that [Ap­ Governors Coldwell, Jackson, Partee, and Lilly. Absent plicant] or its management is or will be in any and not voting: Chairman Burns and Governor Wallich. way dominated by, or is the unthinking tool of, a foreign entity.”6 On the basis of the preceding (Signed) G riffith L. G arwood, [seal] Assistant Secretary of the Board. and other information in the record of this appli­ cation, the Board is of the opinion that Applicant will not be controlled by any of its passive inves­ tors. Additionally, the Board notes that should any evidence of control by Applicant’s passive inves­ 7 Protestant Dunn advanced several other objections to the tors develop in the future, the Board may order proposed transaction. The Board finds these objections to be without merit and to have been refuted adequately by Appli­ a controlling influence proceeding pursuant to § cant’s responses thereto. As noted previously, Protestant Dunn 2(a)(2)(C) of the Act (12 U.S.C. § 1841(a) died on May 22, 1976. His attorneys have requested that the Board’s consideration of this application be postponed until (2)(C)).7 the executors of his estate are confirmed and a determination is made as to their position with regard to the application. With respect to this request, Protestant Dunn filed extensive protests to the application and it appears no useful regulatory 6Dunn v. Fiduciary Inv. Co. of New Jersey, et al., Civil purpose would be served by further delay, particularly in view No. 75-2203, p. 28 (D.N.J., May 20, 1976). of the pressing need to resolve Bank’s managerial problems. Accordingly the request is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 615 Harlan National Company, Sierra Petroleum Co., Inc. Harlan, Iowa and United Investments Corp., Wichita, Kansas Order Approving Reconsideration Order Approving Formation of Bank Holding Harlan National Company, Harlan, Iowa, has Company and Merger of Bank Holding Companies requested reconsideration of the Order of October 31, 1975 (40 Federal Register 52440), whereby As part of a corporate reorganization involving the Board of Governors denied the application of Sierra Petroleum Co., Inc., Wichita, Kansas Harlan National Company, pursuant to section (“Sierra”), a registered bank holding company, 3(a)(1) of the Bank Holding Company Act (12 United Investments Corp., Wichita, Kansas U.S.C. § 1842(a)(1)), to become a bank holding (“United”), a new corporation, has applied for company through acquisition of 98.2 per cent of the Board’s approval under § 3(a)(1) of the Bank the voting shares of The Harlan National Bank, Holding Company Act (“the Act”) (12 U.S.C. Harlan, Iowa, and declared moot Harlan’s appli­ § 1842(a)(1)) of formation of a bank holding cation, pursuant to section 4(c)(8) of the Bank company through the indirect acquisition of 87.1 Holding Company Act (12 U.S.C. § 1843(c)(8)), per cent of the voting shares of United American for permission to acquire all of the voting shares State Bank & Trust Company, Wichita, Kansas of Bank Insurance Agency, Harlan, Iowa. (“Bank”). The subject shares of Bank are pres­ The request for reconsideration is filed pursuant ently owned by Sierra. United proposes to become to section 262.3(g)(5) of the Board’s Rules of a bank holding company for only a short period Procedure, which provides that the Board will not of time as a result of the exchange of 92.9 per grant any request for reconsideration “unless the cent of the outstanding common shares of Sierra request presents relevant facts that, for good cause for an equivalent number of shares of the common shown, were not previously presented to the stock of United. Immediately after this exchange Board, or unless it otherwise appears to the Board of stock, United will merge with and into Sierra, that reconsideration would be appropriate.” The with Sierra being the surviving corporation in the Board finds that the request for reconsideration merger. In connection with this proposal, Sierra presents relevant facts or issues which appear has also applied for the Board’s approval, pursuant appropriate in the public interest for the Board to to § 3(a)(5) of the Act, to merge with United under consider. Accordingly, the request for recon­ the charter and title of Sierra. sideration is hereby approved. Notice of the applications, affording opportunity In order to facilitate such consideration, com­ for interested persons to submit comments and ments and views regarding the proposed acquisi­ views, has been given in accordance with § 3(b) tion may be filed with the Board not later than of the Act. The time for filing comments and views July 11, 1976. Communications should be ad­ has expired, and the Board has considered the dressed to the Secretary, Board of Governors of applications and all comments received in light of the Federal Reserve System, Washington, D.C. the factors set forth in § 3(c) of the Act (12 U.S.C. 20551. The application, as supplemented by Ap­ 1842(c)). plicant’s request for reconsideration, may be United is a nonoperating corporation that was inspected at the offices of the Board of Governors organized for the sole purpose of becoming a bank or at the Federal Reserve Bank of Chicago. holding company for a short period of time in order By the Board of Governors, effective June 11, to facilitate a reorganization of the ownership of 1976. Sierra. The proposal was initiated by a group of companies and individuals owning, in the aggre­ gate, 92.9 per cent of Sierra’s voting stock. The companies and individuals, collectively referred to Voting for this action: Vice Chairman Gardner and Governors Coldwell, Jackson, Partee, and Lilly. Absent as the Graham-Michaelis interests, control or own and not voting: Chairman Burns and Governor Wallich. slightly more than 2.5 million of Sierra’s approxi­ mately 2.7 million outstanding shares. Under the terms of the merger of United into Sierra, the (Signed) Griffith L. Garwood, Graham-Michaelis interests will be issued shares [seal] Assistant Secretary of the Board. of Sierra stock in the exact amount which they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 Federal Reserve Bulletin □ July 1976 held prior to the initial exchange of shares with banking needs, considerations relating to the con­ United (except that one shareholder, Mr. W. A. venience and needs of the communities to be Michaelis, Jr., will receive 10 additional shares served are consistent with approval of the applica­ in exchange for the initial 10 shares issued to him tions. Therefore, it is the Board’s judgment that by United). Sierra’s present 3,420 minority share­ the proposed acquisition and subsequent merger holders, who own 192,585.25 shares, will be are in the public interest and should be approved. offered two dollars per share for their stock upon On the basis of the record, the applications are the surrender of their shares to Sierra.1 approved for the reasons summarized above. The Sierra controls only one bank.2 Bank is the 60th transactions shall not be made (a) before the thir­ largest of the 614 banks in Kansas and holds tieth calendar day following the effective date of slightly more than 0.3 per cent of the total com­ this Order, or (b) later than three months after the mercial bank deposits in the State.3 Bank, with effective date of this Order, unless such period deposits of about $28 million, is the ninth largest is extended for good cause by the Board, or by of 28 competing banks in the relevant banking the Federal Reserve Bank of Kansas City pursuant market, which is approximated by the boundaries to delegated authority. of Sedwick County, Kansas. Inasmuch as neither By order of the Board of Governors, effective United nor Sierra has any other subsidiary bank, June 7, 1976. and since the proposal represents merely a re­ Voting for this action: Chairman Burns and Gover­ structuring of Bank’s ownership, neither the tem­ nors Gardner, Coldwell, Jackson, Partee, and Lilly. porary acquisition of Bank by United, nor the Absent and not voting: Governor Wallich. subsequent merger of United with Sierra, would have any adverse effects on competition within the (Signed) G riffith L. G arwood, area served by Bank. Accordingly, it is concluded [seal] Assistant Secretary of the Board. that Competitive considerations are consistent with approval of the application. The financial and managerial resources4 of Sierra and Bank are regarded as satisfactory and the future prospects of each appear favorable. Neither United nor Sierra will incur debt incident American Affiliates, Inc., to the subject proposal. Accordingly, banking fac­ tors are regarded as being consistent with ap­ South Bend, Indiana proval . Although consummation of the transaction Order Approving Retention and Acquisition would have no immediate effect on the area’s of Bank Shares American Affiliates, Inc., South Bend, Indiana a bank holding company within the meaning of the Bank Holding Company Act, has applied for 1 Under Kansas corporation law, the approval of the merger by the shareholders of either United or Sierra is not required; the Board’s approval under § 3(a)(3) of the Act neither is the approval of the directors of Sierra required. The (12 U.S.C. § 1842(a)(3)) to retain 3.83 per cent Kansas statutes provide the opportunity for minority share­ of the voting shares of American National Bank holders of Sierra’s stock to contest the value assigned to their shares by the board of directors of United, and provide remedial and Trust Company of South Bend, South Bend, procedures. Indiana (“Bank”) and to acquire an additional 2 Sierra, as a “company covered in 1970,” engages in the 3.74 per cent of the voting shares of Bank. following activities pursuant to Section 4(a)(2) of the Act, which it may retain indefinitely after surviving the merger Notice of the applications, affording opportunity proposed with United: the sale of gas and crude oil and the for interested persons to submit comments and operating of oil and gas leases, and real estate leasing activities. The oil and gas related activities were commenced in 1952, views, has been given in accordance with § 3(b) and the real estate activities were commenced in 1967. Addi­ of the Act. The time for filing comments and views tionally, Sierra has engaged in the operation of a public has expired, and the Board has considered the stockyard and the sale of livestock, through subsidiaries over which control was obtained on November 25, 1970. Sierra applications and all comments received in light of may continue these latter activities under § 4(a)(2) of the Act the factors set forth in § 3(c) of the Act (12 U.S.C. until December 31, 1980. 1842(c)). 3 All banking data are as of June 30, 1975. 4 The proposed officers and directors of United are identical Applicant acquired 42.5 per cent of the shares to the officers and directors of Sierra, and, except for Mr. of Bank in March of 1966. After January 1, 1971, W. A. Graham, Sierra’s vice president and director, Sierra’s officers and directors are also directors or officers of Bank. Applicant acquired an additional 3.83 per cent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 617 Bank’s shares without prior Board approval.1 Ap­ year of the date of the Order approving the subject plicant now proposes to retain those shares, as well applications, whichever occurs first. In view of this as acquire an additional 3.74 per cent of Bank’s commitment, the financial condition, managerial shares. Upon consummation of the subject pro­ resources and future prospects of Applicant and posal, Applicant would control slightly more than Bank are considered to be consistent with ap­ 50 per cent of Bank’s total outstanding shares. The proval. Although Applicant proposes no signifi­ subject applications are part of a series of steps cant changes in the operations or services of Bank that Applicant proposes to take in order to acquire as a part of this proposal, considerations relating control of all of the shares of Bank. With Bank to the convenience and needs of the residents of as its sole subsidiary, Applicant is the 38th largest the community to be served are also consistent banking organization in Indiana with 0.5 per cent with approval of the applications. It is the Board’s of the total deposits in commercial banks in the judgment that the proposed retention and acquisi­ State. tion of shares of Bank by Applicant would be in Bank holds deposits of approximately $82.4 the public interest and that the applications should million,2 representing 9.9 per cent of total deposits be approved. in commercial banks in the South Bend banking On the basis of the record, the applications are market,3 and thereby, ranks as the fourth largest approved for the reasons summarized above. The of ten banks operating in the market. Since Appli­ transaction to acquire additional shares of Bank cant already controls the policies of Bank, it does shall not be made (a) before the thirtieth calendar not appear, from the facts of record, that either day following the effective date of this Order or the retention of Bank shares or the acquisition of (b) later than three months after the effective date additional Bank shares by Applicant would have of this Order, unless such period is extended for any adverse effect on existing or potential compe­ good cause by the Board, or by the Federal Re­ tition, increase the concentration of banking re­ serve Bank of Chicago pursuant to delegated au­ sources, or have an adverse effect on other banks thority. in any relevant area. Thus, the competitive con­ By order of the Board of Governors, effective siderations are consistent with approval of the June 18, 1976. application. Voting for this action: Chairman Burns and Gover­ Applicant has committed to inject at least nors Wallich, Coldwell, Jackson, Partee, and Lilly. $1,250,000 into Bank upon receiving the regula­ Absent and not voting: Governor Gardner. tory approvals necessary for its plan to acquire control of all of the shares of Bank or within one (Signed) G riffith L. G arw ood, [seal] Assistant Secretary of the Board. Cedar Investment Company, 1In accord with the Board’s position with respect to viola­ Waverly, Iowa tions of the Act, the Board has scrutinized the underlying facts surrounding the acquisitions of Bank’s shares without prior Board approval. Upon an examination of all the facts of record, Order Approving Acquisition of Additional the Board does not believe that those facts call for denial of Shares of Bank the application to retain Bank’s shares. The Board cautions, however, that all bank holding compa­ Cedar Investment Company, Waverly, Iowa nies have an obligation not only to conform their conduct to the requirements of the Act, but also to take steps to inforrA (“Applicant”), a registered bank holding com­ themselves of their obligations under the Act. As it has stated pany, has applied for the Board’s approval under on previous occasions, the Board will continue to fulfill its § 3(a)(3) of the Bank Holding Company Act (12 responsibilities to refer any apparently willful violation to the Department of Justice for possible criminal prosecution. Fur­ U.S.C. § 1842(a)(3)) to acquire 60.5 per cent of ther, in the Board’s consideration of applications for permission the voting shares of State Bank of Waverly, to retain illegally acquired shares or activities, the circum­ Waverly, Iowa (“Bank”). stances surrounding a violation may reflect so adversely on the managerial factors as to constitute grounds for denial of Notice of the application, affording opportunity such an application. In appropriate cases, the Board may also for interested persons to submit comments and initiate cease-and-desist proceedings under the Financial Insti­ views, has been given in accordance with § 3(b) tutions Supervisory Act. 2 All banking data are as of June 30, 1975. of the Act. The time for filing comments and views 3 The relevant geographic market for purposes of analyzing has expired, and the Board has considered the the competitive effects of the subject proposal is approximated by St. Joseph County, Indiana. application and all comments received, including Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin □ July 1976 those of the Superintendent of Banking for the cant will incur some acquisition debt in connection State of Iowa, in light of the factors set forth in with this proposal, the earnings prospects of Bank § 3(c) of the Act (12 U.S.C. § 1842(c)). appear to provide Applicant with the necessary Applicant1 presently owns directly 24.9 per cent financial flexibility that will enable Applicant to of the voting shares of Bank.2 With deposits of service its debt without impairing the financial $24.9 million, Bank controls approximately two- condition of Bank. Accordingly, banking factors tenths of one per cent of the total deposits held are consistent with approval of the application. by commercial banks in Iowa and is the 93rd Considerations relating to the convenience and largest bank in that State.3 Bank, which is the needs also are regarded as being consistent with smaller of the two banks in Waverly, controls approval of the application. Therefore, it is the approximately 24.8 per cent of the total deposits Board’s judgment that the proposed transaction in the relevant banking market (approximated by would be in the public interest and that the appli­ Bremer County) and is the second largest of eight cation should be approved. banks in that market. Applicant proposes to ac­ On the basis of the record, the application is quire an additional 60.5 per cent of the voting approved for the reasons summarized above. The shares of Bank from two individuals who are transaction shall not be made (a) before the thir­ officers and directors of Bank as well as being the tieth calendar day following the effective date of only shareholders, directors, and officers of Ap­ this Order or (b) later than three months after the plicant. Inasmuch as the proposed transaction is effective date of this Order, unless such period essentially a reorganization of family interests, and is extended for good cause by the Board, or by Applicant has no other present banking subsidi­ the Federal Reserve Bank of Chicago, pursuant aries, consummation of the proposal would neither to delegated authority. eliminate existing or potential competition, in­ By order of the Board of Governors, effective crease the concentration of banking resources, nor June 23, 1976. have significant adverse effects upon other banks Voting for this action: Chairman Burns and Gover­ in the relevant area. Accordingly, based upon the nors Gardner, Wallich, Coldwell, Jackson, and Lilly. foregoing and other facts of record, the Board Absent and not voting: Governor Partee. concludes that competitive considerations are con­ (Signed) G riffith L. G arw ood, sistent with approval of the application. [seal] Assistant Secretary of the Board. The financial condition, managerial resources, and future prospects of Applicant and Bank are First Freeport Corporation, considered satisfactory and appear to be consistent Freeport, Texas with approval of the application. Although Appli­ Order Approving Acquisition of Bank First Freeport Corporation, Freeport, Texas, a 1 Applicant became a bank holding company on December bank holding company within the meaning of the 31, 1970, by virtue of the fact that it owned 61 per cent of Bank Holding Company Act (“Act”), has applied the voting shares of American Savings Bank, Tripoli, Iowa for the Board’s approval under § 3(a)(3) of the (“ASB”). At that time, Applicant also owned 24.9 per cent of the voting shares of Bank. Although Applicant divested itself Act (12 U.S.C. § 1842(a)(3)) to acquire all of the of its shares in ASB in 1975, it agreed with the Federal Reserve voting shares (less directors’ qualifying shares) of Bank of Chicago to continue its status as a bank holding company with respect to Bank, based upon the fact that Chemical National Bank, Clute, Texas (“Bank”), pursuant to section 225.2 of the Board’s Regulation Y [12 a proposed new bank. CFR § 225.2 (1976)] Applicant owned 24.9 per cent of Bank’s Notice of the application, affording opportunity voting shares, and principals of Applicant owned additional shares. Although a rebuttable presumption that Applicant con­ for interested persons to submit comments and trols Bank exists under section 225.2(b) of the Board’s Regu­ views, has been given in accordance with § 3(b) lation Y (12 CFR § 225), the Board has made no formal of the Act. The time for filing comments and views determination that Applicant controls Bank. 2 Applicant also engages in the activity of acting as an agent has expired, and the Board has considered the for the sale of credit-related insurance that is issued in connec­ application and all comments received, including tion with extensions of credit. Applicant, by letter dated May those submitted on behalf of three Texas banks: 10, 1976, to the Federal Reserve Bank of Chicago, has agreed to file a section 4(c)(8) application to continue to engage in The Lake Jackson Bank of Lake Jackson, Lake this nonbanking activity. Jackson, Brazosport Bank of Texas, Freeport, and 3 All banking data are as of June 30, 1975, unless otherwise indicated. First State Bank, Clute (hereinafter referred to as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 619 “Protestants”), in light of the factors set forth in to Weird approval of the application since Bank will § 3(c) of the Act (12 U.S.C. § 1842(c)). be capable of offering a full complement of bank­ Applicant, the 212th largest banking organi­ ing services to its customers. zation in Texas, controls one bank with aggregate During the course of its consideration of this deposits of $35.9 million, representing approxi­ application, the Board has considered the com­ mately .8 of one per cent of the total commercial ments submitted on behalf of Protestants. Protes­ bank deposits in the State.1 Since Bank is a pro­ tants have advanced several arguments relating to posed new bank, its acquisition by Applicant the Board’s jurisdiction to consider the subject would neither eliminate any existing competition application. In brief, Protestants assert that the nor immediately increase Applicant’s share of Board’s jurisdiction does not exist since Bank is commercial bank deposits. merely a proposed bank rather than an operating Bank is to be located in Clute, Texas, and will institution. Further, the Comptroller of the Cur­ compete in the Freeport banking market (the rele­ rency was not authorized to condition his granting vant banking market).2 Applicant’s subsidiary of Bank’s charter on the acquisition of Bank by bank, First Freeport National Bank, located 8.3 Applicant. Both of Protestants’ contentions have miles northwest of Bank, is the largest of twelve been rejected by the courts. Gravois Bank v. banks operating in the market and holds approxi­ Board of Governors, 478 F. 2d 546, (8th Cir. mately 19.8 per cent of market deposits, while 1973); see Whitney National Bank v. Bank of New Protestants Lake Jackson Bank and Brazosport Orleans & Trust Co., 379 U.S. 411 (1965). Ac­ Bank are the second and third largest banks in cordingly, the Board finds these arguments to be the market accounting for 12.2 and 11.9 per cent without merit.3 of market deposits, respectively. Since Bank is a Protestants also contend that affiliation of Ap­ proposed new bank, its acquisition by Applicant plicant with Bank would contravene Texas law would not eliminate any existing or potential prohibiting branch banking (TEX. CONST. Art competition. In addition, there is no evidence to XVI § 16). The Board has stated that a State’s indicate that Applicant’s proposal is an attempt to restrictive branch banking laws are not automat­ preempt a site before there is a need for a bank. ically applicable to bank holding company opera­ On the basis of the above and other facts of record, tions. In a given case the Board examines the facts the Board concludes that competitive consid­ to determine whether a particular acquisition of erations are consistent with approval of the appli­ a bank holding company would constitute an ille­ cation. gal branch under State law. If the Board deter­ The financial condition and managerial re­ mines that a violation of State law would result, sources and future prospects of Applicant and its it is required to disapprove the transaction. Whit­ subsidiary bank are regarded as satisfactory. Bank ney National Bank v. Bank of New Orleans, 323 has no operating financial history; however, it will F. 2d 290 (D.C. Cir. 1963), rev’d on other be opened with adequate capital and its prospects grounds, 379 U.S. 411 (1965); Gravois Bank v. as a subsidiary of Applicant appear satisfactory. Board of Governors, 478 f. 2d 546 (8th cir. 1973). Accordingly, considerations relating to the bank­ The Board notes that the Office of the Comp­ ing factors are consistent with approval. Consid­ troller of the Currency has granted preliminary erations relating to the convenience and needs of approval for the charter of Bank, following a the community to be served lend some weight hearing, apparently concluding that Bank would not be an illegal branch under Texas law. The facts of record in this case indicate that Bank will be a separate corporation, with its own capital stock 1 All banking data are as of June 30, 1975, adjusted to reflect bank holding company formations and acquisitions approved as of May 31, 1976. 2 The Freeport banking market is approximated by Brazoria 3Protestants also claim that section 3(b) of the Act (12 County exclusive of the communities of Alvin and Pearland U.S.C. § 1842(b)) restricts the Comptroller’s chartering au­ and their immediate environs. The Freeport banking market thority. This provision of the Act refers to the Board’s obliga­ was previously included in the Houston banking market; how­ tion to solicit the Comptroller’s views with regard to applica­ ever, in response to Protestants’ contentions that the Freeport tions by bank holding companies to acquire a national bank area represented a distinct banking market, the Federal Reserve as a proposed subsidiary pursuant to section 3 of the Act. If Bank of Dallas undertook a field study of the area. As a result, the Comptroller recommends disapproval of an application, it was determined that the Freeport banking market was a within the 30 days after receipt of the Board’s notice the Board separate and distinct banking market. must hold a formal hearing on the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin □ July 1976 and a loan limit based on such capital stock; that higher than average population growth, high in­ Bank’s operations will be conducted primarily by come per household, and anticipated strong busi­ its own officers; that Bank’s board of directors will ness development. While the decision to establish be generally separate from the boards of Applicant a new bank almost always involves some measure and of Freeport Bank and will exercise inde­ of risk, the Board is unable to conclude that pendent judgment with respect to the management Applicant’s proposal involves more than the usual of Bank; that Bank’s officers and employees will entrepreneurial risks inherent in such a proposal. not directly perform any services for customers Finally, Protestants assert that any substantial of Freeport Bank other than those services that growth by Bank would be at the expense of the would be provided for customers of other area area’s existing banks. Applicant has defined a banks, such as check cashing, and the same is service area for Bank which overlaps the service true of Freeport Bank’s officers and employees areas of three neighboring banks. These banks with regard to customers of Bank; that Bank’s have sustained growth rates of over 50 per cent customers will be able to deposit and withdraw on the average in both deposits and loans over their funds only with respect to accounts in Bank the past five years. In view of the growth pattern and will not be able to effect a deposit or with­ of the area’s economy and the commercial and drawal from Bank at Freeport Bank; and the same industrial activity occurring near Bank’s proposed is true of Freeport Bank’s customers who will site, it is the Board’s determination that Appli­ likewise not be able to effect a deposit or with­ cant’s entry will have no significant adverse effects drawal from Freeport Bank at Bank; that Bank on any bank in the market or impair their ability and Freeport Bank will be advertised as being to remain viable banking organizations. members of the same bank holding company sys­ In view of the foregoing discussion and having tem but that they will not be identified as united considered the facts of record and all the comments institutions; that Bank will maintain its own books of Protestants in light of the statutory factors the of account, use its own stationery and issue its Board must consider under § 3(c) of the Act, it own distinctive checks and forms; and that Bank’s is the Board’s judgment that consummation of the name will be different from the name of Freeport subject proposal would be in the public interest Bank. and that the application to acquire Bank should In order to prevail on the branching issue, “It be approved. must be shown that in substance a bank is doing On the basis of the record, the application is business through the instrumentality of the affiliate approved for the reasons summarized above. The institution which constitutes the alleged branch, transaction shall not be made (a) before the thir­ or vice versa, in the same way as if the institutions tieth calendar day following the effective date of were one.” Independent Bankers Association of this Order or (b) later than three months after that Georgia v. Board of Governors of the Federal date, and (c) Chemical National Bank, Clute, Reserve System, 516 F. 2d 1206 (D.C. Cir. 1975). Texas, shall be opened for business not later than In view of the foregoing, and having considered six months after the effective date of this Order. the comments of the Protestants and all the other Each of the periods described in (b) and (c) may facts of record, the Board concludes that Bank will be extended for good cause by the Board, or by not be operated in a unitary fashion with Appli­ the Federal Reserve Bank of Dallas pursuant to cant’s banking subsidiary and thus this proposal delegated authority. will not contravene Texas’ branch banking law. By order of the Board of Governors, effective Protestants further contend that the Freeport July 1, 1976. banking market is not particularly attractive for de novo entry because little growth in the area can be expected. Consequently, Protestants assert, it is doubtful that Bank can become a viable Voting for this action: Chairman Burns and Gover­ independent banking institution. The Board has nors Caldwell, Jackson, Partee, and Lilly. Absent and not voting: Governors Gardner and Wallich. reviewed the facts of record, including the past and projected growth of the economy of the area, and finds that the market can reasonably be ex­ pected to support an additional banking alterna­ (Signed) J. P. Garbarini, tive. This is especially so in light of the market’s [seal] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 621 Florida Bankshares, Inc., market than for the State as a whole, two new Hollywood, Florida banks having entered this market within the last five years. Accordingly, it does not appear that Order Approving Acquisition of Bank consummation of the proposal would eliminate the likelihood of potential competition. Competitive Florida Bankshares, Inc., Hollywood, Florida, considerations are consistent with approval of the a bank holding company within the meaning of application. the Bank Holding Company Act, has applied for The financial and managerial resources and fu­ the Board’s approval under section 3(a)(3) of the ture prospects of Applicant and its subsidiaries Act (12 U.S.C. § 1842(a)(3)) to acquire 23.8 per appear to be generally satisfactory and it is be­ cent of the voting shares of First National Bank lieved that Applicant’s acquisition of Bank will of Sebring, Sebring, Florida (“Bank”). strengthen the financial condition and managerial Notice of the application, affording opportunity resources of Bank. Consequently, banking factors for interested persons to submit comments and are considered to be consistent with approval. views, has been given in accordance with section Applicant’s influence3 over Bank should improve 3(b) of the Act. The time for filing comments and Bank’s management and operating efficiency and, views has expired and the application and all as a subsidiary of Applicant, Bank will have ready comments received have been considered in light access to loan participations and capital through of the factors set forth in section 3(c) of the Act Applicant’s larger financial organization. Accord­ (12 U.S.C. § 1842(c)). ingly, considerations relating to the convenience Applicant, the 25th largest banking organization and needs of the community to be served are in Florida, controls five banks, with deposits of consistent with approval. It is the Board’s judg­ approximately $131.2 million, representing ap­ ment that the proposed acquisition would be in proximately .5 per cent of total deposits in com­ the public interest and that the application should mercial banks in the State.1 Acquisition of Bank, be approved. the third largest of seven banking organizations On the basis of the record, the application is in the Sebring banking market,2 with deposits of approved for the reasons summarized above. The $28.8 million, or 16.1 per cent of the deposits transaction shall not be made (a) before the thir­ in the market area, would not result in a significant tieth calendar day following the effective date of increase in the concentration of banking resources this Order or (b) later than three months after that in Florida. date, unless such period is extended for good cause Applicant’s acquisition of Bank would provide by the Board, or by the Federal Reserve Bank of Applicant with its initial entry into the Sebring Atlanta pursuant to delegated authority. banking market. Applicant’s banking subsidiary By order of the Board of Governors, effective nearest the Sebring banking market is located 58 June 16, 1976. miles southeast of that market. No significant competition exists between Bank and any of Ap­ Voting for this action: Chairman Burns and Gover­ plicant’s subsidiaries and therefore, consummation nors Wallich, Coldwell, Jackson, Partee, and Lilly. of the instant proposal would not eliminate any Absent and not voting: Governor Gardner. significant amount of existing competition. Al­ (Signed) G riffith L. G arw ood, though Applicant has the resources to enter the [seal] Assistant Secretary of the Board. market de novo, the probability of such an entry is considered slight in view of the fact that popu­ lation per banking office and income per banking office ratios are substantially lower in the relevant 3In connection with its consideration of the subject proposal, the Board has by letter of today’s date notified Applicant that, upon consummation of the proposal, the Board has determined, on the basis of the record, that Applicant would be capable of exercising a “controlling influence” over the management and policies of Bank within the meaning of § 2(a)(2)(C) of the Act. Accordingly, upon consummation of the proposal, *A11 banking data are as of June 30, 1975. Applicant is required to report Bank as a subsidiary of Appli­ 2The Sebring banking market, which is the relevant market cant and to comply with the applicable provisions of Federal within which to assess the competitive effects of the proposed banking law with respect to such subsidiary. Applicant has acquisition, is approximated by Highland County and the waived the requirement of notice and opportunity for a hearing communities of Wauchula in Hardee County and Frostproof provided in the statute, and acknowledged that, upon consum­ in Polk County. mation, it will control Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 Federal Reserve Bulletin □ July 1976 National City Corporation, about .34 per cent of the total commercial bank Cleveland, Ohio deposits in the market.3 Applicant, with two sub­ sidiary banks operating 50 offices in the market, Order Approving Acquisition of Bank is the second largest banking organization in the Cleveland market controlling approximately 16.6 National City Corporation, Cleveland, Ohio, a per cent of total market deposits.4 Applicant’s bank holding company within the meaning of the acquisition of Bank would increase only slightly Bank Holding Company Act, has applied for the Applicant’s market share and the concentration of Board’s approval under § 3(a)(3) of the Act (12 deposits in the Cleveland market and Applicant U.S.C § 1842(a)(3)) to acquire all of the voting would still remain the second largest banking shares, less directors’ qualifying shares, of the organization in the Cleveland market behind the successor by consolidation to First National Bank largest banking organization which controls ap­ of Elyria (“Bank”), Elyria, Ohio. As part of this proximately 31.1 per cent of market deposits. proposal, Applicant will acquire all of the voting While approval of this application would eliminate shares, less directors’ qualifying shares, of a new one independent banking alternative in the market, national bank (“interim bank”), which is to be 36 banking organizations, including subsidiaries consolidated with Bank. The interim bank and of nine other Ohio multibank holding companies, resulting consolidated bank to be acquired have would remain, operating 432 banking offices in no significance except as a means to facilitate the the Cleveland market. Even though Applicant and acquisition of the voting shares of Bank. Accord­ Bank operate in the same market, the facts of ingly, the proposal is treated herein as the acquisi­ record indicate that subsidiaries of Applicant and tion of the shares of Bank. Bank derive no significant business from each Notice of the application, affording opportunity other’s service areas and thus approval would not for interested persons to submit comments and result in the elimination of any significant amount views, has been given in accordance with § 3(b) of existing competition. of the Act. The time for filing comments and views In assessing the effects of the proposal on po­ has expired and the Board has considered the tential competition, the Board is of the view that application and all comments received in light of although Applicant may possess the capabilities the factors set forth in § 3(c) of the Act (12 U.S.C. to enter Lorain County de novo and acquisition § 1842(c)). of Bank would eliminate one independent banking Applicant, the fourth largest banking organi­ alternative in the relevant market, there are several zation in Ohio, controls 4 banks with aggregate other facts of record that mitigate these slightly deposits of $1.56 billion, representing approxi­ adverse competitive effects. Ohio’s restrictive mately 5.3 per cent of the total commercial bank branching laws, which limit branching to home deposits in the State.1 Consummation of this pro­ office counties, prohibit Applicant’s present sub­ posal would increase Applicant’s share of State­ sidiaries from branching into the Lorain County wide deposits by approximately .1 per cent and portion of the market; moreover, it appears un­ would not have a significant effect upon the con­ likely that Applicant would enter Lorain County centration of banking resources in the State. Bank, headquartered in the city of Elyria about de novo since its population and deposits-perbanking-office ratios are considerably below the 35 miles from downtown Cleveland, is the 21st State averages. Furthermore, Bank is the smallest largest of 37 banking organizations competing in of eight banks headquartered in Lorain County the Cleveland banking market2 and holds approxi­ and, following approval, there would remain 18 mately $29.6 million in deposits, representing other independent banking organizations as possi­ ble entry points into the market for competitors. 1A11 banking data are as of June 30, 1975, unless otherwise indicated. 2The Cleveland banking market, which is the relevant bank­ ing market, is approximated by all of Cuyahoga, Lake and 3 All market data are as of June 30, 1974. Geauga Counties, the northwestern quarter of Portage County, 4 Applicant controls two subsidiary banks in the market, the northern third of Summit County, all but the southern-most National City Bank, Cleveland, Ohio, and National City Bank tier of townships in Medina and Lorain Counties and the City of Lake County, Mentor, Ohio, a de novo bank, which was of Vermilion which straddles the border of Lorain and Erie opened on March 15, 1976 and therefore its deposits are not Counties. reflected in the market data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 623 Accordingly, it is concluded that consummation results in some elimination of existing competi­ of the proposal would have only slightly adverse tion. effects on potential competition. Given the absolute and relative size of Applicant The financial and managerial resources and fu­ in the Cleveland banking market, the effects on ture prospects of Applicant, its subsidiaries, and existing competition are in my view adverse; and Bank are regarded as generally satisfactory and the Bank Holding Company Act requires denial consistent with approval. The acquisition of Bank of such a proposal unless such anticompetitive by Applicant will allow the more specialized effects are outweighed by other factors reflected banking services currently being offered in the in the record. In this regard, I am of the opinion market to become more readily accessible to resi­ that the other factors involved in this proposal are dents of Elyria and the remainder of Lorain not sufficient to outweigh the anticompetitive ef­ County. In particular, Applicant has indicated that fects inherent in this proposal. For these reasons, it will make available to Bank and Bank’s cus­ I would deny this application. tomers more specialized and diversified trust serv­ ices, more specialized types of credit services, The Royal Trust Company, including personal property leasing and industrial Montreal, Quebec, Canada revenue bond financing, international banking services, and data processing services. The Board Order Approving Acquisition of Bank concludes, therefore, that considerations relating to the convenience and needs of the community The Royal Trust Company, Montreal, Quebec, to be served outweigh the slight anticompetitive Canada, a bank holding company within the effects of the proposal. Accordingly, it is the meaning of the Bank Holding Company Act, has Board’s judgment that the proposed acquisition applied for the Board’s approval under § 3(a)(3) would be in the public interest and that the appli­ of the Act [12 U.S.C. § 1842(a)(3)] to acquire cation should be approved. 80 per cent or more of the voting shares of The On the basis of the record, the application is First Bank of Gulfport, Gulfport, Florida approved for the reasons summarized above. The (“Bank”). transaction should not be made (a) before the Notice of the application, affording opportunity thirtieth calendar day following the effective date for interested persons to submit comments and of this Order or (b) later than three months after views, has been given in accordance with § 3(b) the effective date of this Order, unless such period of the Act. The time for filing comments and views is extended for good cause by the Board or by has expired, and the Board has considered the the Federal Reserve Bank of Cleveland pursuant application and all comments received in light of to delegated authority. the factors set forth in § 3(c) of the Act [12 U.S.C. By order of the Board of Governors, effective § 1842(c)]. June 23, 1976. Applicant, with total assets of $3.4 billion (as of December 31, 1975) is the largest trust company Voting for this action: Chairman Burns and Gover­ and the eighth largest financial institution in Can­ nors Gardner, Wallich, Jackson, Partee, and Lilly. Voting against this action: Governor Coldwell. ada, and operates, through its subsidiaries and other interests, in both Europe and the Caribbean (Signed) G riffith L. Garwood, Islands. In the United States, Applicant controls [seal] Assistant Secretary of the Board. two banks1 and operates one nonbank subsidiary, which provides data processing and other related services to financial institutions located in Florida Dissenting Statement of Governor Coldwell and operates as a computer service bureau for the As noted in the majority’s opinion, the instant proposal involves an acquisition of a bank in the Cleveland banking market by National City Cor­ poration, a bank holding company that currently 1The Royal Trust Bank of Miami, N.A., Miami, Florida, and Dale Mabry State Bank, Tampa, Florida. On March 1, ranks as the second largest banking organization 1976, Applicant transferred its controlling interest in Royal in the market. Where a banking organization is Trust Bank of Miami to a newly-formed, wholly-owned Florida already present in the market, a horizontal acqui­ subsidiary, Royal Trust Bank Corp., itself a bank holding company. Applicant also contemplates similar transfers in the sition such as the one proposed here necessarily future with respect to both Dale Mabry State Bank and Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin □ July 1976 storing and processing of banking, financial, and of record, the Board concludes that consummation other related economic data.2 Through its two of the proposal would not have any significant subsidiary banks, Applicant controls aggregate adverse effects upon either existing or potential deposits of $73.6 million, representing approxi­ competition in any relevant area, and that compet­ mately three-tenths of one per cent of the total itive considerations are consistent with approval deposits held by commercial banks in Florida.3 of the application. Consummation of the subject proposal would in­ The financial and managerial resources and fu­ crease Applicant’s share of State deposits by ap­ ture prospects of Applicant, its subsidiary banks proximately one-tenth of one per cent and would and Bank are regarded as being generally satis­ not have a significant effect upon the concentration factory. Applicant will provide Bank with its ex­ of banking resources in the State. pertise in the areas of international banking, trust Bank (with deposits of $21.3 million) is the 14th services, and specialized loans and will be a source largest of the 32 commercial banks in the South of capital and management as needed. Therefore, Pinellas County banking market4 and holds ap­ considerations relating to banking factors and to proximately two per cent of the market’s commer­ the convenience and needs of the community to cial bank deposits. Applicant is not presently rep­ be served are consistent with approval of the resented in the relevant market and its closest application. It is the Board’s judgment that the banking subsidiary to Bank is located in the adja­ proposed acquisition would be in the public inter­ cent, but separate, Tampa banking market. There est and that the application should be approved. does not appear to be any existing competition On the basis of the record, the application is between Bank and any of Applicant’s present approved for the reasons summarized above. The banking and nonbanking subsidiaries, and it does transaction shall not be made (a) before the thir­ not appear likely that any significant competition tieth calendar day following the effective date of would develop in the future. Upon acquisition of this Order or (b) later than three months after the Bank, Applicant would become the 13th largest effective date of this Order, unless such period of the 17 banking organizations that currently are is extended for good cause by the Board, or by competing in the South Pinellas County banking the Federal Reserve Bank of Atlanta pursuant to market. delegated authority. While Applicant could enter the relevant market By order of the Board of Governors, effective de novo, the Board views the proposed acquisition June 11, 1976. of Bank as a foothold entry by Applicant into the Voting for this action: Vice Chairman Gardner and market. Moreover, acquisition of Bank by Appli­ Governors Coldwell, Jackson, Partee, and Lilly. Absent cant will remove Bank from its affiliation with and not voting: Chairman Burns and Governor Wallich. another bank that is located in the relevant market and will introduce a new banking alternative into (Signed) G riffith L. G arw ood, the market. Accordingly, on the basis of the facts [seal] Assistant Secretary of the Board. Western Michigan Corporation, Niles, Michigan information Systems Design of Florida, Inc., Miami, Order Denying Acquisition of Bank Florida (“ISD-Florida”), is a subsidiary of Information Sys­ tems Design, Inc., Oakland, California (“ISD-California”), Western Michigan Corporation, Niles, Michi­ which is owned by Computel Systems, Ltd. (“Computer’), a Canadian computer company. By Order of December 6, gan, a bank holding company .within the meaning 1973, the Board denied Applicant’s retention of ISD-California of the Bank Holding Company Act, has applied after Applicant’s acquisition of Computel [38 Federal Register 34514 (1973); 60 Federal Reserve Bulletin 58 (1974)]. ISD- for the Board’s approval under § 3(a)(3) of the California is engaged in non-permissible data processing activ­ Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per ities while ISD-Florida is engaged in permissible data process­ cent of the voting shares (less directors’ qualifying ing activities. The Board granted Applicant a two-year period, after its acquisition of Computel, within which to divest itself shares) of the successor by merger to The First of ISD-California. At the request of Applicant, the Board National Bank of Cassopolis, Cassopolis, Michi­ recently has extended the divestiture period until September gan (“Bank”). The bank into which Bank is to 14, 1976. 3All banking data are as of June 30, 1975, unless otherwise be merged has no significance except as a means indicated. to facilitate the acquisition of the voting shares 4The South Pinellas County banking market is comprised of Pinellas County south of the town of Largo. of Bank. Accordingly, the proposed acquisition of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 625 shares of the successor organization is treated would control approximately 37.2 per cent of total herein as the proposed acquisition of the shares market deposits. Thus, the two-bank concentration of Bank. ratio in the market would become 75.3 per cent, Notice of the application, affording opportunity a significant increase in the concentration of bank­ for interested persons to submit comments and ing resources in the relevant market. views, has been given in accordance with § 3(b) In addition to the significant adverse effects on of the Act. The time for filing comments and views concentration, it appears that the proposal would has expired, and the Board has considered the also have adverse effects on existing and future application and all comments received including competition within the Cass County banking mar­ the denial recommendation of the Department of ket. As noted above, Applicant already operates Justice, in light of the factors set forth in § 3(c) in the relevant banking market4 and the record of the Act (12 U.S.C. § 1842(c)). indicates clearly that there is substantial competi­ Applicant is the 34th largest banking organi­ tion between Applicant and Bank which would be zation in Michigan and through its sole subsidiary, eliminated by this proposal.5 Furthermore, the First National Bank of Southwestern Michigan, proposal would reduce the number of banking Niles, Michigan (“FNB”), holds deposits of ap­ alternatives operating in the market. Moreover, proximately $108.7 million, representing 0.4 per approval of the proposed transaction would re­ cent of the total deposits held by commercial banks move a viable entry vehicle for a Michigan bank in the State.1 Acquisition of Bank would increase holding company not currently represented in the Applicant’s share of Statewide deposits by ap­ market. This factor is even more significant when proximately .05 per cent and would make Appli­ considered in the light of the fact that the market cant the 31st largest banking organization in is not particularly attractive for de novo entry by Michigan. Although consummation of this trans­ other banking organizations seeking to gain access action would not significantly increase the con­ to the Cass County market. On the basis of the centration of banking resources in Michigan, it foregoing and other facts of record, including the would have significant adverse effects upon con­ views of the Department of Justice and Applicant’s centration in the relevant banking market. response thereto, the Board concludes that ap­ Bank (deposits of $15.1 million) controls ap­ proval of the application would have significantly proximately 20.1 per cent of the total deposits held adverse effects on both existing and potential by commercial banks in the Cass County banking competition. market, the relevant banking market,2 and is the On the basis of the foregoing and other facts second largest of five banking organizations com­ of record, the Board concludes that the competitive peting in the market. FNB, Applicant’s banking considerations relating to this application weigh subsidiary, competes in the adjoining Niles, sufficiently against approval so that it should not Michigan-South Bend/Elkhart, Indiana banking be approved unless the anticompetitive effects are market.3 FNB also operates one branch (deposits clearly outweighed by benefits to the public in of $12.9 million) in the relevant banking market meeting the convenience and needs of the com­ and controls approximately 17.1 per cent of the munities to be served. market’s total deposits, thereby ranking as the The financial and managerial resources and fourth largest among the five banking organi­ prospects of Applicant, its subsidiary bank, and zations in the market. Acquisition of Bank by Bank are regarded as satisfactory and consistent Applicant would significantly increase Applicant’s with approval of the application; however, such share of total deposits in the relevant banking considerations do not provide significant weight market since Applicant would become the mar­ for approval of the application. Acquisition of ket’s second largest banking organization and Bank by Applicant would enable Bank to expand 1 Unless otherwise indicated, all banking data are as of June 4The other eight banking offices of Applicant’s lead bank 30, 1975, and reflect bank holding company formations and are all within 25 miles of Bank’s head office in Cassopolis, acquisitions approved through May 31, 1976. albeit in a different market. 2The Cass County banking market is approximated by all 5Among the facts of record regarded by the Board as evi­ of Cass County except the two extreme southwestern townships dencing the elimination of existing competition are the amount of Howard and Milton, which are part of the Niles, Michigan- of deposits and loans derived from Bank’s service area by South Bend/Elkhart, Indiana banking market. Applicant’s subsidiary bank, which represent 9.9 and 15.2 per 3FNB operates eight banking offices in this market. cent of Bank’s total deposits and loans, respectively. 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626 Federal Reserve Bulletin □ July 1976 its trust department, increase its lending capacity Bank Shares Incorporated, through loan participations, upgrade its agricul­ Minneapolis, Minnesota tural loan services, and create new time deposit services and municipal and corporate savings pro­ Order Denying grams. These considerations relating to conven­ Merger of Bank Holding Companies ience and needs lend some weight toward approval Bank Shares Incorporated, Minneapolis, Min­ of the application. The Board finds, however, that nesota (“Applicant”), a bank holding company neither the considerations relating to banking fac­ within the meaning of the Bank Holding Company tors nor to convenience and needs are sufficient Act (“Act”), has applied for the Board’s approval to outweigh the adverse competitive effects of under section 3(a)(5) of the Act (12 U.S.C. § Applicant’s proposal. 1842(a)(5)) to merge with Mid America Bancor - On the basis of the facts in the record, and in poration, Inc., Minneapolis, Minnesota (“Mid light of the factors set forth in § 3(c) of the Act, America”), a bank holding company within the it is the Board’s judgment that approval of the meaning of the Act. Applicant would be the sur­ proposal would not be in the public interest. Ac­ viving corporation. cordingly, the application is denied for the reasons Notice of the application, affording opportunity summarized above. for interested persons to submit comments and By order of the Board of Governors, effective views, has been given in accordance with section June 30, 1976. 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act Voting for this action: Vice Chairman Gardner and (12 U.S.C. § 1842(c)). Governors Jackson and Partee. Voting against this ac­ tion: Governor Lilly. Absent and not voting: Chairman On the basis of the record, the application is Burns and Governors Wallich and Coldwell. denied for the reasons set forth in the Board’s (Signed) G riffith L. Garwood, Statement, which will be released at a later date. [seal] Assistant Secretary of the Board. By order of the Board of Governors, effective June 21, 1976. Voting for this action: Chairman Burns and Gover­ nors Gardner, Wallich, Coldwell, Jackson, and Partee. Present and abstaining: Governor Lilly. Dissenting Statement of Governor Lilly (Signed) G riffith L. G arw ood, I would approve the subject application of [seal] Assistant Secretary of the Board. Western Michigan Corporation to acquire the vot­ ing shares of The First National Bank of Cassopolis. It appears from the facts of record that the relevant banking market is rural in nature and that Applicant’s resources would enable Bank to increase both its internal efficiencies and the qual­ Statement ity of its services to the public. Of particular importance is the fact that Applicant would expand Bank Shares Incorporated, Minneapolis, Min­ Bank’s trust department, increase Bank’s lending nesota (“Applicant”), a bank holding company capacity through loan participations, upgrade within the meaning of the Bank Holding Company Bank’s agricultural loan services, and create new Act (“Act”), applied for the Board’s approval time deposit services and municipal and corporate under section 3(a)(5) of the Act (12 U.S.C. § savings programs. 1842(a)(5)) to merge with Mid America Bancor- For these reasons, I regard the considerations poration, Inc., Minneapolis, Minnesota (“Mid relating to the convenience and needs of the com­ America”), a bank holding company within the munity to be served to outweigh clearly in the meaning of the Act. Applicant would be the sur­ public interest the slightly adverse competitive viving corporation. effects of the proposed transaction, and I would Notice of the application, affording opportunity approve the application. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 627 views, has been given in accordance with section effects is in the Minneapolis-St. Paul banking 3(b) of the Act. The time for filing comments and market. Applicant is the fourth largest commercial views has expired, and the Board has considered banking organization in that market with total the application and all comments received in light market deposits of $206.5 million, representing of the factors set forth in section 3(c) of the Act 2.9 per cent of deposits held by commerical banks (12 U.S.C. § 1842(c)). in the market. Mid America ranks sixth with total Applicant controls five banks with aggregate market deposits of $101.3 million, representing a deposits of $259 million, representing approxi­ market share of 1.4 per cent. Consummation of mately 1.88 per cent of the total deposits held by the proposed transaction would result in Applicant commercial banks in Minnesota, and is the fifth holding 4.3 per cent of total market deposits and largest bank holding company in that State.1 Mid Applicant would thereby become the market’s America controls seven banks with aggregate de­ third largest banking organization. The two largest posits of $118 million, representing approximately banking organizations hold 67.7 per cent of total 0.85 of one per cent of the total deposits held by market deposits. While consummation may stimu­ commercial banks in the State, and is Minnesota’s late competition between the surviving corporation seventh largest bank holding company. Consum­ and the two largest banking organizations in the mation of the proposed merger would result in market, the proposed transaction would eliminate Applicant’s control of approximately 2.73 per cent some existing competition between Applicant and of total deposits held by the State’s commercial Mid America, particularly in the area of consumer banks, and Applicant would become the State’s banking services. Thus, consummation of the fourth largest bank holding company. merger may have a slight adverse effect on com­ Four of Applicant’s subsidiary banks are located petition. in the Minneapolis-St. Paul banking market,2 and The Board has indicated on previous occasions the fifth is located in the Rochester banking mar­ that it believes that a bank holding company should ket.3 Of Mid America’s seven banking subsidi­ constitute a source of financial and managerial aries, six are located in the Minneapolis-St. Paul strength to its subsidiary banks, and that the Board banking market and one is in the Hutchinson will closely examine applications with this con­ banking market.4 The Rochester and Hutchinson sideration in mind. markets are approximately 85 and 60 road miles The total amount of Applicant’s debt has in­ distant, respectively, from the Minneapolis-St. creased markedly over the last five years. At Paul market, and approximately 125 road miles year-end 1975, Applicant’s total borrowed funds from each other. Since numerous other banks equaled 55 per cent of its stated equity capital on intervene between these markets and large dis­ a parent company only basis. At year-end 1971, tances separate them, it appears unlikely that ap­ Applicant’s parent-only debt-equity ratio was 33 proval of the subject application would foreclose per cent. Applicant’s interest expense increased any significant existing or potential competition from 19 per cent of operating revenue in 1972 between Applicant and Mid America in the Roch­ to 50 per cent of operating revenue in 1975. On ester and Hutchinson markets. a consolidated basis, Applicant’s debt-equity ratio Accordingly, the primary area in which the was 63 per cent. Parent-only long-term debt of proposed transaction may have anticompetitive Applicant represented 44 per cent of its equity capital at year-end 1974 while other similarlysized multi-bank holding companies averaged a long-term-debt-equity ratio of 12.3 per cent. The size of Applicant’s debt-equity ratio suggests that XA11 banking data are as of June 30, 1975, unless otherwise Applicant lacks the financial flexibility to provide indicated. financial assistance to its subsidiary banks in the 2The Minneapolis-St. Paul banking market is approximated event such banks encounter currently unforeseen by the Minneapolis-St. Paul Ranally Metro Area, adjusted to include all of Carver County. difficulties. 3The Rochester banking market is approximated by north­ The Board’s concern over the size of Appli­ western Fillmore County, northeastern Mower County, south­ eastern Dodge County, and southwestern Wabasha County, and cant’s debt has been previously expressed to Ap­ all but the eastern portion of Olmsted County. plicant. The Board, in 1972, approved Applicant’s 4The Hutchinson banking market is approximated by proposal to acquire Olmsted County Bank and McLeod County and the northeastern portion of Renville County. Trust Company, Rochester, Minnesota (“Roches­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin □ July 1976 ter Bank”), with the understanding that the debt a substantial demand from the resulting parent of $4 million incurred by Applicant would be corporation for dividends. replaced with equity within one year of the acqui­ Generally, the financial conditions of the sub­ sition. To date, that debt remains on Applicant’s sidiary banks of Applicant and Mid America are books. Applicant has asserted that market condi­ satisfactory. However, one bank subsidiary of tions have made it impossible for Applicant to sell Applicant and one of Mid America have experi­ equity securities publicly. However, Applicant, in enced substantial deposit growth without com­ making the aforementioned commitment and in mensurate capital growth and thus are in need of consummating the Rochester Bank acquisition on infusions of capital. Irrespective of whether the that basis assumed the risk of a change in market survivor of the merger would be so leveraged as conditions. It is also Applicant’s contention that to inhibit its ability to raise such capital, the it has pursued alternatives to equity funding which pressure for bank dividends represented by the have resulted in a capital structure similar to that combined debt servicing requirement could have which would have resulted had the commitment an adverse effect on the capital accounts of those been fulfilled. In view of the fact that Applicant’s two banks.5 Accordingly, the Board finds that debt position has further deteriorated since the although the financial resources and future pros­ Rochester Bank acquisition was originally pro­ pects of Mid America are generally satisfactory, posed, and in view of the continuing need for the financial resources and future prospects of both increased equity capital, the Board is unable to Applicant and the combined organization must be accept Applicant’s assertions. Under these cir­ regarded as less than satisfactory and lending cumstances, the Board regards Applicant’s long­ weight toward disapproval. term noncompliance with the above-mentioned The Board regards the managerial resources of commitment as a factor reflecting adversely upon Mid America as being satisfactory. But for Appli­ the financial and managerial resources of Applicant cant’s failure to fulfill the above-mentioned com­ and as providing sufficient grounds for denial of mitment, the managerial considerations relating to the present proposal. Applicant would be regarded as generally satis­ In contrast, Mid America is a conservatively factory, but would lend no weight toward approval operated holding company without substantial le­ of the proposed transaction. There is no indication verage. Its parent-only total borrowed funds that the convenience and needs of the communities equaled only 18 per cent of its stated equity capital to be served are not being met currently. Applicant at year-end 1975, down from 32 per cent a year has asserted that expanded trust services, real earlier and reflecting the efforts of Mid America estate lending, and increased lending limits would to reduce its leverage. Consummation of the pro­ flow from approval of the proposed transaction. posed transaction will result in a combined orga­ While convenience and needs factors lend some nization with total parent company debt equalling slight weight toward approval of the application, 41 per cent of stated equity capital and long-term they are insufficient to outweigh the adverse factors parent company debt equalling 30 per cent of found by the Board to be present in the application. stated equity capital. While this would represent Accordingly, on the basis of the facts of record, some improvement over Applicant’s debt position, it is the Board’s judgment that approval of the it would continue to compare unfavorably with application would not be in the public interest and other bank holding companies of similar size. Such that the application should be denied. improvement in the resulting organization’s lever­ age vis a vis Applicant’s leverage would be ac­ complished at the expense of subjecting Mid 5Applicant has projected earnings for the resulting organi­ zation as being sufficient to meet the debt servicing require­ America’s banking subsidiaries, which should be ments of that organization. However, it is the Board’s judgment retaining dividends in order to build capital to that these projections are unreasonably optimistic. For ex­ support deposit growth, to a substantially more ample, the projections assume a return on average assets for the surviving corporation substantially above the five-year highly leveraged parent. Accordingly, Mid average return on average total resources of either of the America’s banking subsidiaries, which have not merging companies. Further, even if dividends from subsidiary provided any significant dividends to Mid banks could be increased sufficiently to service the combined organizations’ debt, this could weaken the capital adequacy America, would be subjected to the possibility of of those banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 629 Board of Governors of the Federal Reserve posits of approximately $554 million,2 repre­ System, June 23, 1976. senting 7.6 per cent of the total deposits in com­ mercial banks in Colorado, and is the fifth largest (Signed) G riffith L. Garwood, banking organization in the State. Applicant also [seal] Assistant Secretary of the Board. controls several nonbanking subsidiaries engaged in underwriting life and casualty insurance, operating a savings and loan association,3 per­ forming commercial mortgage and leasing activi­ Orders Under Section 4 ties, and manufacturing and marketing musical Of Bank Holding Company Act instruments and electronic components. FMC and its subsidiaries are engaged in the D. H. Baldwin Company, manufacture and sale of many types of industrial Cincinnati, Ohio equipment, including mining, agricultural, food processing, petroleum, and marine and rail trans­ Order Approving Joint Venture Participation in portation equipment. FMC-Baldwin Leasing Company Applicant proposes to acquire a 20 per cent equity participation in Company,4 which will en­ D. H. Baldwin Company, Cincinnati, Ohio, a gage de novo in the activities of originating full bank holding company within the meaning of the pay-out leveraged leases on personal property.5 It Bank Holding Company Act, has applied for the is anticipated that most, if not all, of such leases Board’s approval, under § 4(c)(8) of the Act (12 will be written for equipment manufactured by CFR § 225.4(b)(2)), to engage in a joint venture FMC and its subsidiaries. Company will engage through its subsidiary, The Baldwin Company, in such leasing activities from an office in Chicago, with FMC Finance Corporation, a subsidiary of Illinois; however, it appears that the relevant geo­ FMC Corporation, Chicago, Illinois (“FMC”). graphic market for these activities is the nation, The joint venture is to be known as FMC-Baldwin particularly in that the market for products manu­ Leasing Company, Chicago, Illinois (“Com­ factured by FMC and to be leased by Company pany”). Company would engage de novo in the is nationwide. Applicant’s subsidiary, Baldwin activities of leasing personal property on a full Finance Company, engages in leasing personal pay-out basis. Such activities have been deter­ property on a full pay-out basis. In addition, mined by the Board to be closely related to bank­ Applicant’s subsidiary banks originate instalment ing (12 CFR § 225.4(a)(6)). sales contracts relating to personal property, which Notice of the application, affording opportunity may serve as substitutes for the types of leases for interested persons to submit comments and views on the public interest factors, has been duly published (41 Federal Register 10453 (1976)). 2 All banking data are as of June 30, 1975, and reflect bank The time for filing comments and views has ex­ holding company formations and acquisitions approved by the pired, and the Board has considered the application Board through May 31, 1976. 3 Currently pending before the Board is an application by and all comments1 received in the light of the Applicant to retain shares of its subsidiary, Empire Savings, public interest factors set forth in § 4(c)(8) of the Building and Loan Association, Denver, Colorado (see 41 Federal Register 26276 (1976)). Act (12 U.S.C. § 1843(c)(8)). 4 Although Applicant is providing a 20 per cent equity Applicant controls 12 banks with aggregate de­ participation in Company, it will be a general partner in the management of Company. Applicant has agreed to report Company as its subsidiary for purposes of the Bank Holding 1 As originally proposed, Applicant declared that, if the Company Act, and to comply with all limitations and prohibi­ subject application were approved, Company would not engage tions that are applicable under the Act to such a subsidiary. in leasing activities within Colorado. The United States Accordingly, the Board’s approval action herein is based upon Department of Justice commented on the application stating Applicant’s commitments and is conditioned upon Applicant’s that this provision appeared to be a territorial allocation ar­ compliance therewith. rangement, a form of behavior that the courts have repeatedly 5It is contemplated that funds will be lent to Company, on condemned as a per se offense under the Sherman Act. Upon a nonrecourse basis (i.e., neither Company, nor its equity being advised of the Justice Department’s comments, Applicant participants, Applicant and FMC, will be liable for this debt), amended its application by removing this provision. Accord­ from unafliliated financial institutions. A trustee will be desig­ ingly, the Justice Department currently has no objection on nated to receive rentals and to disburse those funds to the equity antitrust grounds to the proposed transaction. and debt participants in particular lease trusts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin □ July 1976 that Company will originate. FMC Finance Cor­ Republic of Texas Corporation, poration also originates instalment sales contracts. Dallas, Texas However, in relation to the $100 billion of esti­ mated total equipment lease obligations outstand­ Order Approving Retention of Republic ing nationwide, the volume of obligations origi­ Commerce Company, Republic Money Orders, nated by Applicant and FMC in 1975 is not con­ Inc., and Republic Money Orders of sidered substantial. Thus, it does not appear that California, Inc., all of Dallas, Texas consummation of the proposal would eliminate a substantial amount of existing competition. Republic of Texas Corporation, Dallas, Texas, On the other hand, formation of Company a bank holding company within the meaning of would provide an additional and convenient source the Bank Holding Company Act, has applied for of financing the acquisition of certain personal the Board’s approval, under section 4(c)(8) of the property, especially for equipment manufactured Act (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of by FMC and its subsidiaries. Furthermore, there the Board’s Regulation Y (12 CFR 225.4(b)(2)), is no evidence in the record indicating that con­ to retain ownership of the voting shares of Repub­ summation of the subject proposal would result lic Commerce Company, Dallas, Texas (“Com­ in any undue concentration of resources, unfair pany”), and indirect ownership of the voting competition, conflicts of interest or any other ad­ shares of Republic Money Orders, Inc. (“RMO”), verse effects. and Republic Money Orders of California, Inc. Based upon the foregoing and other consid­ (“RMO of California”), both of Dallas, Texas. erations reflected in the record, the Board has Company engages in no activities and merely determined that the balance of the public interest serves as owner of record of all shares of RMO. factors the Board is required to consider under § RMO engages in the activity of issuing money 4(c)(8) is favorable. Accordingly, the application orders and travelers checks to third party agents is hereby approved. This determination is subject who, in turn, sell the instruments at the retail level. to (1) Applicant’s commitment to treat Company RMO of California is a wholly-owned subsidiary as a subsidiary; (2) the compliance of Applicant of RMO which, until 1972, also issued money and Company with the conditions set forth in § orders and travelers checks. RMO of California 225.4(c) of Regulation Y; and (3) the Board’s is inactive and will be liquidated in 1985 when authority to require such modification or termina­ any money orders that remain unclaimed at that tion of the activities of a holding company or any time escheat to the State of California. of its subsidiaries as the Board finds necessary to The Board has previously determined by order assure compliance with the provisions and pur­ that the activity of issuing and selling travelers poses of the Act and the Board’s regulations and checks is closely related to banking (59 Federal orders issued thereunder, or to prevent evasion Reserve B ulletin 544 (1973)). The Board has thereof. not previously determined whether the issuance The transaction shall be made not later than and sale of money orders constitutes an activity three months after the effective date of this Order, closely related to banking. The Board has decided unless such period is extended for good cause by to proceed by rulemaking on the question of the Board or by the Federal Reserve Bank of whether Regulation Y should be amended by add­ Kansas City. ing the activity of issuing payment instruments, By order of the Board of Governors, effective such as money orders, to the list of permissible June 30, 1976. nonbank activities (12 CFR 225.4(a)). Notice of the Board’s decision has been published affording interested persons an opportunity to submit their views on this subject (41 Federal Register 14902). Voting for this action: Vice Chairman Gardner and Since it has previously determined that the activity Governors Coldwell, Jackson, Partee, and Lilly. Absent of issuing and selling travelers checks is closely and not voting: Chairman Burns and Governor Wallich. related to banking, the Board decided to consider as a separate matter Applicant’s application to continue to engage (through RMO) in the activity (Signed) Griffith L. Garwood, of issuing and selling travelers checks. [seal] Assistant Secretary of the Board. Notice of the application, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 631 for interested persons to submit comments and The issuance and sale of travelers checks is views on the public interest factors, has been duly recognized as a distinct line of commerce. Seven published (40 Federal Register 44634). The time firms constitute most of the travelers check in­ for filing comments and views has expired, and dustry which has annual sales of approximately the Board has considered all comments received $6 billion. The largest organization, American in the light of the public interest factors set forth Express, accounts for about two-thirds of the in­ in section 4(c)(8) of the Act. dustry total. RMO’s share of the national market By Order dated October 25, 1973, the Board is approximately one per cent.3 Barriers to entry approved the application of Applicant to become into the industry appear high in view of the neces­ a bank holding company through the acquisition sity for a large international sales organization to of Republic National Bank of Dallas (“Republic handle this low-margin high-volume product. Bank”). Applicant became a bank holding com­ Thus, potential entrants are likely to be those large pany on May 9, 1974. At the time that Applicant money center banking organizations which have, became a bank holding company, it also acquired, or are capable of building, correspondent or from Republic Bank, direct ownership of Com­ agency relationships worldwide. The Board has pany. Republic Bank was itself a bank holding previously determined that it would be in the company by virtue of the 1970 Amendments to public interest for bank holding companies having the Act and owned various bank and nonbank sucn capabilities to engage in the activity of issu­ interests. RMO and its subsidiary, RMO of Cali­ ing and selling travelers checks in view of the fornia, were established as de novo subsidiaries limited number of competitors presently serving of the profit sharing plan of Republic Bank. Pur­ the industry (59 Federal Reserve B ulletin 544 suant to the provisions of § 4(a)(2) of the Act, (1973)). Retaining Company as a subsidiary of Applicant has two years from the date when it Applicant should serve to promote competition became a bank holding company to divest its among the various leading participants in the trav­ nonbank activities or, in the alternative, to apply elers check industry. to the Board for approval to retain them. The RMO was established de novo by Republic Board regards the standards under § 4(c)(8) of the Bank in 1959. In 1974 it had travelers checks Act for retention of shares to be the same as the issues of $129.7 million. In view of the highly standards for a proposed acquisition. concentrated nature of the travelers check industry Applicant, the fourth largest banking organi­ and the fact that RMO was established de novo, zation in Texas, controls three banks with total as a subsidiary of Applicant’s lead bank, the Board deposits of approximately $2.8 billion, repre­ concludes that Applicant’s retention of RMO senting about 6.5 per cent of the total deposits would not result in any adverse effects on compe­ in commercial banks in the State.1 In addition, tition in any relevant area. Furthermore, there is Applicant engages indirectly through a group of no evidence in the record to indicate that the corporations referred to collectively as The How­ proposed retention of RMO by Applicant would ard Corporation, in various nonbanking activities lead to an undue concentration of resources, unfair which are described in a Board determination competition, conflicts of interest, or unsound dated September 10, 1973, relating to the grand­ banking practices, or other adverse effects. father benefits of Republic Bank (59 Federal Re­ Funds received on the issuance of travelers serve B ulletin 768 (1973)). The Board has pre­ checks by a member bank are considered as de­ viously ruled that Applicant would not be a suc­ mand deposits and included in the money supply. cessor to the grandfather benefits of Republic As such, member banks are required to carry Bank, and Applicant has committed, and is re­ reserves against outstanding instruments (see 15 quired, to dispose of the nonpermissible activities Federal Reserve B ulletin 348; Board Interpreta­ within the two-year statutory period prescribed in tion H 2770). RMO, however, because it is not § 4(a)(2) of the Act.2 a member bank, is not required by statute to maintain reserves with respect to such funds. Unless otherwise noted, all banking data are as of De­ cember 31, 1974. 2The Federal Reserve Bank of Dallas, acting pursuant to delegated authority, has extended the period within which Applicant must dispose of its impermissible activities by one 3 Applicant sells travelers checks to companies with outlets year to May 9, 1977. in 44 States and two foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin □ July 1976 While the Board believes that the better course Security Bancorp, Inc., would be to have all institutions engaged in deposit Ponca City, Oklahoma banking of this kind subject to common reserve requirements, it recognizes that competition in the Order Approving Retention of Security Datacenter travelers check industry is likely to be promoted and A.D.P.C., Inc. by allowing bank holding companies to offer such Security Bancorp, Inc., Ponca City, Oklahoma, services through nonbank subsidiaries rather than a bank holding compan)/ within the meaning of through subsidiary banks. It has therefore ap­ the Bank Holding Company Act, has applied for proved the subject application in view of the the Board’s approval, under § 4(c)(8) of the Act relevant favorable considerations under the Bank (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the Holding Company Act. Board’s Regulation Y (12 CFR § 225.4(b)(2)), to Unlike some other issuers of travelers checks, retain the assets of Security Datacenter (“Data­ RMO does not charge its agents a fee. The absence center”) and shares of A.D.P.C., Inc. of a fee provides RMO’s agents greater flexibility (“A.D.P.C.”), both of Ponca City, Oklahoma. in dealing with retail customers and, in certain Datacenter engages in the activities of providing circumstances, may result in lower retail costs. In bookkeeping and data processing services for Ap­ addition, continued affiliation of Applicant and plicant’s subsidiary bank, and financially-related RMO should increase the possibilities that RMO data processing services for businesses and mu­ will expand the number of retail outlets that handle nicipalities. A.D.P.C. engages in the activity of its travelers checks. Accordingly, it is the Board’s providing financially-related data processing ser­ view that approval of the subject application will vices for public schools. Such activities have been produce benefits to the public and will be in the determined by the Board to be closely related to public interest. banking (12 CFR § 225.4(a)(8)). Based on the foregoing and other considerations Notice of the applications, affording opportunity reflected in the record, the Board has determined, for interested persons to submit comments and in accordance with the provision of section 4(c)(8) views on the public interest factors, has been duly of the Act, that retention of Company, RMO and published (41 Federal Register 1546). The time RMO of California can reasonably be expected to for filing comments and views has expired, and result in benefits to the public that outweigh possi­ the Board has considered the applications and all ble adverse effects. Accordingly, the application comments received in light of the public interest is hereby approved. This determination is subject factors set forth in § 4(c)(8) of the Act (12 U.S.C. to the conditions set forth in section 225.4(c) of § 1843(c)(8)). Regulation Y and to the Board’s authority to Applicant, the 25th largest banking organization require such modification or termination of the in Oklahoma, controls one bank with deposits of activities of a holding company or any of its approximately $49.1 million, representing 0.5 per subsidiaries as the Board finds necessary to assure cent of the total deposits in commercial banks in compliance with the provisions and purposes of the State.1 the Act and the Board’s regulations and orders Datacenter is an unincorporated company, all issued thereunder, or to prevent evasion thereof. the assets of which have been owned by Applicant By order of the Board of Governors, effective since August of 1970. Primarily, Datacenter pro­ June 25, 1976. vides bookkeeping and data processing services for the internal operations of Applicant’s subsidiary bank. In addition, it provides financially-related data processing services to municipalities and pri­ vate business firms. In 1975, Datacenter had total operating revenue of approximately $328,000. Voting for this action: Chairman Burns and Gover­ A.D.P.C. is a computer service company that nors Gardner, Wallich, Coldwell, and Lilly. Absent and not voting: Governors Jackson and Partee. leases computer time from Datacenter in order to (Signed) Griffith L. Garwood, [seal] Assistant Secretary of the Board. *A11 banking data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 633 perform financially-related data processing serv­ A.D.P.C. was formed de novo in 1971, and ices for public school systems in Oklahoma. Ap­ thus, the acquisition of its shares by Applicant plicant presently controls approximately 47 per does not appear to have had any significant adverse cent of the outstanding shares of A.D.P.C.2 In effects on competition at that time. A.D.P.C. is 1975, A.D.P.C. had total operating revenue of highly specialized in that it only provides finan­ approximately $210,000. cially-related data processing services for public In acting on applications submitted pursuant to school systems throughout Oklahoma. On the § 4(c)(8) of the Act, the Board analyzes an appli­ basis of the record, it does not appear that the cation to retain a company engaged in § 4(c)(8) retention of A.D.P.C. by Applicant would have activities by the same standards that it analyzes any significant adverse effects on existing or po­ an application to acquire a company engaged in tential competition. The retention of Datacenter such activities. In addition, the Board analyzes the and A.D.P.C. by Applicant should provide bene­ competitive effects of a proposal both at the time fits to the public by assuring the respective cus­ of the acquisition and at the time of the application tomers of those companies of a continued and for retention. Applicant acquired Datacenter in convenient source |or financially-related data pro­ August, 1970 from Applicant’s sole subsidiary cessing services. Moreover, there is no evidence bank. Since that transaction was essentially a in the record indicating that retention of Datacenter reorganization of Applicant’s existing data pro­ or A.D.P.C. would lead to any undue concentra­ cessing activities, it does not appear to have had tion of resources, unfair competition, conflicts of any significant adverse effects on competition at interests, unsound banking practices or other ad­ that time. At present, Datacenter competes with verse effects on the public interest. three general data processing services in the Ponca With respect to Applicant’s financial condition, City market3 to provide certain data processing the Board notes that, in the past, Applicant has services for municipalities and businesses. From incurred substantial debt in order to purchase its the facts of record it does not appear that the own shares.4 Such practice, known as “bootstrap­ retention of Datacenter by Applicant would have ping,” is of concern to the Board because it has any significant adverse effects on existing or po­ the potential to reduce or eliminate equity in a tential competition. bank holding company; place substantial pressure on the holding company’s subsidiary bank(s) to pay excessive dividends to service the debt; and encourage undue risk-taking aimed at increasing the earnings of its subsidiary bank(s) in order to service the debt. As of May 15, 1976, § 225.6 2On January 14, 1971, the date A.D.P.C. was formed, of Regulation Y (12 CFR § 225.6) requires that, Applicant acquired one-third of the outstanding shares of under certain conditions, a holding company plan­ A.D.P.C. without prior Board approval. This transaction did ning to make purchases of its own equity securities not require prior Board approval by virtue of § 225.4(d) of Regulation Y (12 CFR § 225.4(d). Since that time, however, must notify the Board 45 days prior to any such Applicant has on two separate occasions acquired additional transaction. The purpose of this recent amendment shares of A.D.P.C. without prior Board approval. It appears is to assist the Board in supervising bank holding from the facts of record that these two latter acquisitions of shares were based on a misunderstanding of the applicable companies by providing advance notice of holding statutes and regulations relating to nonbanking activities of company redemptions that could have a significant bank holding companies. In accord with the Board’s position with respect to violations of the Act, the Board has scrutinized impact on the holding company’s capital structure. the underlying facts surrounding the acquisitions of shares of Accordingly, future redemptions by Applicant of A.D.P.C. without prior Board approval; and upon an exami­ its equity securities may be subject to this prior nation of all the facts of record, the Board believes that those facts do not call for denial of the application to retain shares notification requirement, and if circumstances in­ of A.D.P.C. dicate that the proposed transaction would violate It should be noted that, under the Act, any acquisition by applicable law, or create an unsafe or unsound a bank holding company that would result in that holding company controlling more than five per cent of the shares of condition in Applicant, the Board would, if neca company engaged in nonbanking activities requires the prior approval of the Board. This requirement is applicable to any such acquisition of shares of a nonbanking company, whether or not the holding company already controls more than 50 per cent of that company’s shares. 3The Ponca City market, the relevant geographic market for purposes of analyzing the competitive effects of the proposal 4Through earnings retention, Applicant has been able to to retain Datacenter, is approximated by all of Kay County, replace nearly all of its shareholder equity that was reduced Oklahoma. by the purchase of its own shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin □ July 1976 essary, use its cease and desist authority to prevent activities have been determined by the Board to the transaction. be closely related to banking (12 CFR § Based upon the foregoing and other consid­ 225.4(a)(1), (9), and (10)). erations reflected in the record, the Board has Notice of the application, affording opportunity determined that the balance of the public interest for interested persons to submit comments and factors the Board is required to consider under § views on the public interest factors, has been duly 4(c)(8) is favorable. Accordingly, the applications published (41 Federal Register 16616). The time are hereby approved. This determination is subject for filing comments and views has expired, and to the conditions set forth in § 225.4(c) of Regu­ the Board has considered the application and all lation Y and to the Board’s authority to require comments received in the light of the public inter­ such modification or termination of the activities est factors set forth in § 4(c)(8) of the Act. of a holding company or any of its subsidiaries Applicant, the second largest banking organi­ as the Board finds necessary to assure compliance zation in California, controls one subsidiary bank, with the provisions and purposes of the Act and Security Pacific National Bank, Los Angeles, Cal­ the Board’s regulations and orders issued there­ ifornia (“Bank”). Bank controls deposits of $9.9 under, or to prevent evasion thereof. billion, representing 12.3 per cent of the total By order of the Board of Governors, effective deposits in commercial banks in the State,2 and June 30, 1976. offers a full range of banking services. Applicant engages in a variety of permissible nonbank activ­ Voting for this action: Vice Chairman Gardner and ities through its nonbanking subsidiaries. Appli­ Governors Coldwell, Jackson, Partee, and Lilly. Absent cant’s nonbank activities include commercial fi­ and not voting: Chairman Burns and Governor Wallich. nance, venture capital investment, mortgage (Signed) G riffith L. Garwood, banking, leasing, insurance agency, and invest­ [seal] Assistant Secretary of the Board. ment advisor activities; and through Security Pa­ cific Finance Corp. (“SPFC”), which was orga­ Security Pacific Corporation, nized de novo in 1974, Applicant engages in Los Angeles, California consumer finance activities. SPFC has opened 11 offices as of March, 1976, all but one of which Order Approving Acquisition of are located in California. The Bankers Investment Company BIC (gross receivables of approximately $40 Security Pacific Corporation, Los Angeles, Cal­ million, as of December 31, 1975) operates 57 ifornia (“Applicant”), a bank holding company offices in nine south-central States: Colorado, within the meaning of the Bank Holding Company Idaho, Kansas, Missouri, New Mexico, Okla­ Act (“Act”), has applied for the Board’s ap­ homa, Texas, Utah, and Wyoming, with the larg­ proval, under § 4(c)(8) of the Act (12 U.S.C. § est group of offices, 23, being located in Kansas. 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ Through these offices, BIC engages in direct con­ ulation Y (12 CFR § 225.4(b)(2)), to acquire sumer, agricultural, and commercial lending, and voting shares of The Bankers Investment Com­ the purchase of instalment sales contracts.3 Addi­ pany, Hutchinson, Kansas (“BIC”), and thereby tionally, BIC conducts a nationwide loan-by-mail to acquire control of the wholly-owned subsidi­ program from its principal office in Hutchinson, aries of BIC. As a result of consummation of this Kansas. BIC engages in the sale of credit life and proposal Applicant, through BIC’s subsidiary credit accident and health insurance related to its companies, would engage in consumer finance extensions of credit. BIC also presently engages activities, act as agent for the sale of credit life in the sale of other lines of insurance, but Appli­ and credit accident and health insurance related cant has committed that BIC will cease to engage to extensions of credit by the offices of BIC, and in the sale of these other lines of insurance fol­ act as underwriter for credit life and credit accident lowing consummation of this proposal. Through and health insurance directly related to extensions of credit by the holding company system.1 Such 2 All banking data are as of June 30, 1975. 3 BIC presently issues investment certificates as a source of funding. Applicant has committed to cause BIC to cease the 1 Applicant would not underwrite credit accident and health issuance of investment certificates upon consummation of the insurance for its credit-granting offices located in California. proposed acquisition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 635 two subsidiaries, BIC engages in the underwriting To assure that engaging in the underwriting of credit life and credit accident and health insurance can reasonably of various lines of insurance; however, Applicant be expected to be in the public interest, the Board will has committed that, following consummation of only approve applications in which an applicant demon­ this proposal, BIC’s underwriting activities will strates that approval will benefit the consumer or result in other public benefits. Normally, such a showing would be limited to the underwriting of credit life and be made by a projected reduction in rates or increase in credit accident and health insurance directly re­ policy benefits due to bank holding company performance lated to extensions of credit by Applicant’s credit- of this service. (12 CFR § 225.4(a)(10) n. 7) Applicant has stated that following consumma­ granting subsidiaries. tion of the acquisition, BIC will offer at reduced None of Applicant’s subsidiaries presently premiums the several types of credit insurance competes in any market in which offices of BIC policies that it will reinsure. Since credit life are located;4 nor does it appear likely that any insurance will be sold in each of the nine States significant competition would develop in the future in which BIC operates as well as by Bank in between BIC and any of Applicant’s subsidiaries. California and SPFC in California and Colorado, Applicant’s existing consumer finance subsidiary Applicant’s proposed rate reductions vary accord­ is not regarded as a likely entrant into any of the ing to the permissible rate structures in each re­ markets served by BIC in view of its small size spective State. Thus, Applicant’s proposal in­ and its past record of limiting its expansion pri­ volves rate reductions for reducing-term single and marily to California. Accordingly, the Board con­ joint credit life insurance at premium rates ranging cludes that consummation of the proposed acqui­ from 2 per cent to 15 per cent below the rates sition would not result in a significant adverse presently charged in each of the respective States. effect on competition with respect to this activity Applicant does not proposfe to have BIC under­ in any relevant area. In addition, it does not appear write the credit accident and health insurance sold that Applicant’s acquisition of BIC’s insurance by the California offices of its subsidiaries. How­ activities would have any significant effect on ever, such insurance sold by SPFC’s Colorado competition in view of the limited nature of the office and the offices of BIC in the above-men­ insurance activities which Applicant proposes that tioned nine States will be offered at rates ranging BIC would retain following consummation of the from 3.7 per cent to 5 per cent below the premiums acquisition. presently charged in each of the respective States. It is anticipated that BIC’s affiliation with Ap­ The Board is of the view that the reductions in plicant will afford BIC access to Applicant’s ex­ insurance premiums that Applicant proposes to pertise and substantial financial resources, thus establish are in the public interest. enabling it to compete more effectively with othpr There is no evidence in the record indicating consumer finance companies in the areas in which that consummation of the proposed transaction it operates. Applicant states that, as a result of would result in any undue concentration of re­ this proposal, BIC would be able to expand its sources, decreased or unfair competition, conflicts lending activities. Applicant proposes to provide of interest, unsound banking practices, or other BIC customers with a broader range of lending adverse effects on the public interest. In its con­ services and to increase the availability of largersideration of this application, the Board has taken sized loans, loans with longer maturities, and loans into account several commitments made by Appli­ at lower annual percentage rates. cant with respect to the discontinuance, following Credit life and credit accident and health insur­ consummation of the proposed acquisition, of cer­ ance are generally made available by banks and tain impermissible nonbank activities in which other lenders and are designed to assure repayment BIC is presently engaged. of a loan in the event of death or disability of Based upon the foregoing and other consid­ the borrower. In connection with its addition of erations reflected in the record, including a com­ the underwriting of such insurance to the list of mitment by Applicant, with respect to its proposed permissible activities for bank holding companies, underwriting activities, to maintain on a continu­ the Board stated: ing basis the public benefits that the Board has 4BIC’s nationwide receivables associated with its loan-by- found to be reasonably expected to result from this mail program approximate $6.8 million and its customers are proposal and upon which the approval of that located throughout the United States. Thus, any competition aspect of this proposal is based, the Board has with Applicant in this area is not deemed by the Board to be significant. determined that the balance of the public interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin □ July 1976 factors the Board is required to consider under § views on the public interest factors, has been duly 4(c)(8) is favorable. Accordingly, the application published (41 Federal Register 21701 (1976)). The is hereby approved. This determination is condi­ time for filing comments and views has expired, tioned upon Applicant’s obtaining approval of the and the Board has considered the application and proposed transaction from the Commissioner of all comments received in the light of the public Insurance of the State of Kansas prior to consum­ interest factors set forth in § 4(c)(8) of the Act mation. This determination is further subject to (12 U.S.C. § 1843(c)(8)). the conditions set forth in § 225.4(c) of Regulation Applicant is the fifth largest banking organi­ Y and to the Board’s authority to require such zation in Illinois by virtue of its control of one modification or termination of the activities of a bank with total deposits of $1 billion, representing holding company or any of its subsidiaries as the approximately 1.7 per cent of total deposits held Board finds necessary to assure compliance with by commercial banks in the State.1 Applicant is the provisions and purposes of the Act and the also the Nation’s twelfth largest finance company, Board’s regulations and orders issued thereunder, based on total assets of $3.3 billion, as of De­ or to prevent evasion thereof. cember 31, 1975. Its numerous nonbanking sub­ The transaction shall be made not later than sidiaries are engaged, inter alia, in the activities three months after the effective date of this Order, of factoring, commercial finance, full-payout leas­ unless such period is extended for good cause by ing, data processing, and mortgage banking.2 the Board or by the Federal Reserve Bank of San PLC (total assets of $215.4 million as of De­ Francisco, pursuant to authority hereby delegated. cember 31, 1975) is a wholly-owned subsidiary By order of the Board of Governors, effective of PepsiCo, Inc., New York, New York. PLC has June 21, 1976. a total of 17 wholly-owned subsidiaries which have offices located in nine States and certain Voting for this action: Chairman Burns and Gover­ foreign countries.3 PLC and its subsidiaries pri­ nors Gardner, Wallich, Cold well, Jackson, Partee, and marily engage in the nonleveraged leasing of a Lilly. wide range of personal property and equipment (Signed) G riffith L. Garwood, (receivables from these activities account for ap­ [seal] Assistant Secretary of the Board. proximately 95 per cent of PLC’s gross receiv­ ables). Certain of PLC’s current leasing transac­ tions do not appear to be within the scope of Walter E. Heller International Corporation, nonbanking activities that are permissible for bank Chicago, Illinois holding companies pursuant to the Act and the Board’s Regulation Y. Therefore, Applicant has Order Approving Acquisition of PepsiCo Leasing Corporation Walter E. Heller International Corporation, Chicago, Illinois, a bank holding company within 1A\\ banking data are as of June 30, 1975, unless otherwise the meaning of the Bank Holding Company Act, indicated. 2One of Applicant’s subsidiaries, Knoll International, Inc., has applied for the Board’s approval under § is engaged in the business of manufacturing furniture. The 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and Board’s Order of May 11, 1973, approving Applicant’s appli­ § 225.4(b)(2) of the Board’s Regulation Y (12 cation to become a bank holding company required divestiture of Knoll International, Inc., by May 11, 1975. Acting pursuant CFR § 225.4(b)(2) (1976)), to acquire PepsiCo to delegated authority, the Federal Reserve Bank of Chicago Leasing Corporation, Lexington, Massachusetts on January 3, 1975, extended the divestiture date by one year. Applicant has requested another one-year extension until May (“PLC”), a company that, directly or indirectly 11, 1977, which request is currently pending at the Board. through subsidiaries, engages in the activities of 3Applicant has applied under § 4(c)(8) of the Act to acquire commercial finance, full-pay out leasing of per­ 11 of PLC’s existing subsidiaries, all of which are principally engaged in domestic leasing activities. Applicant has also filed sonal property, and financially-related data pro­ a separate application under § 4(c)(13) of the Act to acquire cessing. Such activities have been determined by four of PLC’s foreign leasing subsidiaries; this application has the Board to be so closely related to banking as also been approved today in a separate letter issued by the Board. The activities of PLC’s subsidiaries are carried on as to be a proper incident thereto (12 CFR § a unit; all administrative, credit, operational, data processing 225.4(a)(1), (6), and (8) (1976)). and collection functions for each of the subsidiaries are perfomed at PLC’s home office and that office and each other Notice of the application, affording opportunity location serves as a sales office for PLC and each of its for interested persons to submit comments and subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 637 committed to the Board that it will acquire and as a result of this proposal is considered, at the conduct only those leasing activities of PLC that most, to be slight. In addition, it appears from are within the scope of the leasing requirements the facts of record that acquisition of PLC would set forth in section 225.4(a)(6)(a) of the Board’s not give Applicant a dominant position in any Regulation Y (12 CFR § 225.4(a)(6)(A) (1976)). relevant market. In connection with its leasing activities, PLC also With respect to PLC’s commercial finance ac­ engages in a small amount of commercial finance tivities, PLC, as of September 30, 1975, had notes activities that represent approximately 2 per cent receivable outstanding totalling $1.2 million, all of its gross receivables. In addition, PLC presently of which were derived from SMSA’s where PLC performs financially-related data processing serv­ or its subsidiaries maintain offices. In the same ices for itself and its subsidiaries and its parent areas, Applicant, as of the same date, had notes company PepsiCo, Inc. and subsidiaries thereof. receivable outstanding of approximately $169.3 After consummation of the proposed transaction, million. In view of the large number and size of PLC will continue to provide its own data proc­ banks and finance company competitors in these essing services and will continue to perform fi- areas and PLC’s relatively small involvement in nancially-related data processing services for Pep­ this activity, it does not appear that Applicant’s siCo, Inc. and its subsidiaries until such organiza­ acquisition of PLC’s commercial finance activities tions can obtain satisfactory alternative services. would have any signficant adverse effects on either As indicated previously, Applicant will not ac­ existing or future competition. quire lease receivables from PLC that do not meet Due to the nature of PLC’s data processing the full-payout requirements of the Board’s Regu­ activities, which have been limited to servicing lation Y. In this regard, PLC had net receivables its needs and those of its parent organization, it in full-payout personal property leasing in the does not appear that Applicant’s acquisition of amount of approximately $191.5 million as of these data processing activities would have any September 30, 1975; as of the same date, Appli­ significant effect on existing or future competition. cant had net receivables in full-payout personal It appears that consummation of this proposal property leasing totalling approximately $31.4 would not result in any undue concentration of million. While PLC has lease receivables out­ resources, conflicts of interest, unsound banking standing in 44 of the 50 States, it derives approxi­ practices, or any other adverse effects on the public mately 53.4 per cent ($102.3 million) of its total interest. Applicant’s acquisition of PLC should full-payout lease receivables from within those make PLC a more effective competitor with the SMSA’s wherein its and its subsidiaries’ offices major equipment leasing companies operating in are located.4 With the exception of the Phila­ its markets, since it will have access to Applicant’s delphia and Cincinnati SMSA’s, Applicant also significant financial and managerial resources, and has offices located within these areas, with the will benefit from certain ifnproved efficiencies in most competition between Applicant and PLC its operations. In this regard, it is noted from the being in the New York, Chicago, and Los Angeles record that PepsiCo, Inc. has apparently deter­ SMSA’s.5 However, in view of the large number mined to dispose of PLC’s leasing activities that of competitors in the areas where Applicant and are unrelated to PepsiCo’s commercial business PLC compete, including all of the major national activities, and that if a suitable purchaser of PLC and regional leasing firms, and the intensity of is not found, it is likely that PLC’s assets would competition in these areas, the amount of existing be liquidated. In the Board’s judgment, the slight and future competition that would be eliminated amount of competition between Applicant and PLC that would be eliminated as a result of this proposal is outweighed, under the circumstances, by the public benefits that will result from PLC’s affiliation with Applicant. 4Baltimore, Boston, Chicago, Cincinnati, Dallas, Ft. Lau­ derdale, Houston, Los Angeles, New York, Philadelphia, and Based upon the foregoing and other consid­ San Francisco. erations reflected in the record, the Board has 5Applicant derives lease receivables totalling $6.6 million from within the Chicago SMSA, $5.5 million from within the determined that the balance of the public interest New York SMSA and $2.2 million from within the Los factors the Board is required to consider under § Angeles SMSA. From these same SMSA’s, PLC has lease 4(c)(8) is favorable. Accordingly, the application receivables outstanding of $12.4 million, $34.2 million and $13.4 million respectively. is hereby approved. This determination is subject Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin □ July 1976 to the conditions set forth in § 225.4(c) of Regu­ and the applications and all comments received1 lation Y and to the Board’s authority to require have been considered in light of the factors set such modification or termination of the activities forth in § 3(c) of the Act, and the considerations of a holding company or any of its subsidiaries specified in § 4(c)(8) of the Act. as the Board finds necessary to assure compliance Applicant is a nonoperating corporation formed with the provisions and purposes of the Act and for the purposes of becoming a bank holding the Board’s regulations and orders issued company through the acquisition of Bank, and thereunder, or to prevent evasion thereof. engaging in the business of a general insurance The transaction shall be made not later than agency through the acquisition of Agency. The three months after the effective date of this Order, proposed transaction involves the transfer of con­ unless such period is extended for good cause by trol of Bank from individuals to a corporation the Board or by the Federal Reserve Bank of owned by the same individuals. Upon acquisition Chicago pursuant to authority hereby delegated. of Bank, Applicant would control 0.2 per cent of By order of the Board of Governors, effective the total deposits in commercial banks in Ne­ June 28, 1976. braska. Bank holds deposits of approximately $11.1 Voting for this action: Chairman Burns and Gover­ million,2 representing 32.1 per cent of the total nors Gardner, Wallich, Jackson, Partee, and Lilly. deposits in commercial banks in the relevant Absent and not voting: Governor Coldwell. banking market,3 and ranks as the second largest (Signed) G riffith L. G arwood, of four commercial banks operating therein. Al­ [seal] Assistant Secretary of the Board. though principals of Applicant control eight onebank holding companies in Nebraska, none of the subsidiary banks of those holding companies are Orders Under Sections 3 and 4 located within the relevant market. However, one Of Bank Holding Company Act of Applicant’s principals also controls the market’s third largest bank, North Loup Valley Bank, North Nebraska Banco, Inc., Loup, Nebraska (“Valley Bank”), with deposits Ord, Nebraska representing 14.9 per cent of total market deposits. Therefore, to the extent that Board approval of Order Denying the subject proposal would facilitate the mainte­ Formation of Bank Holding Company nance of the existing ties between Bank and Valley Nebraska Banco, Inc., Ord, Nebraska, has ap­ Bank, such approval would have adverse effects plied for the Board’s approval under § 3(a)(1) of on both existing and potential competition. the Bank Holding Company Act (12 U.S.C. Since Applicant does not propose to provide any 1842(a)(1)) of formation of a bank holding com­ significant changes in the operations or services pany through acquisition of 100 per cent of the of Bank, the considerations relating to the con­ voting shares of Nebraska State Bank, Ord, Ne­ venience and needs of the community to be served braska (“Bank”). Applicant has also applied, are consistent with, but lend no weight toward, pursuant to § 4(c)(8) of the Act (12 U.S.C. approval of the application. 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ ulation Y, for permission to acquire all of the assets of Pierce Agency, Inc., Ord, Nebraska (“Agency”), a company that engages in the ac­ tivities of a general insurance agency in a town xThe Board has received comments in opposition to the application to acquire Agency from Floyd A. Raymond, Loup with a population of less than 5,000 persons. Such City; E. O. Armstrong, Ord; and D. E. Armstrong Insurance, activities have been determined by the Board to Ord, all in Nebraska (“Protestants”). Protestants are all en­ gaged in the insurance business and generally oppose the be closely related to banking (12 CFR 225.4(a) affiliation of Agency with Bank. Since the denial of the (9)(iii)). application to form a bank holding company renders the appli­ Notice of the applications, affording opportunity cation to acquire Agency moot, the Board believes it is unnec­ essary to address Protestants’ allegations. for interested persons to submit comments and 2A11 bank data with respect to the relevant market are as views, has been given in accordance with §§ 3 of June 30, 1975. and 4 of the Act (40 Federal Register 54305). The 3 The relevant geographic market for purposes of analyzing the competitive effects of the proposed transaction is approxi­ time for filing comments and views has expired, mated by Valley County, Nebraska. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 639 Under § 3(c) of the Act, the Board is required Applicant control through one-bank holding com­ to consider the financial condition, managerial panies reflect a financial condition that the Board resources and future prospects of the bank holding considers less than satisfactory. Furthermore, the company involved and the bank to be acquired. Board notes that during the past five years the In acting on one-bank holding company forma­ financial condition of these three banks has con­ tions, the Board has been less restrictive than tinued to be less than satisfactory under the control otherwise with respect to financial considerations of Applicant’s principals. Such circumstances in cases that involve a current or prospective weigh against approval of the subject application. owner-chief executive establishing a holding com­ In such instances, the Board is of the opinion that pany to hold the individual’s direct equity interest principals of Applicant should direct their mana­ in the bank. The Board regards such a policy as gerial resources toward improving the banks pres­ being in the public interest in order to facilitate ently under their control before seeking to establish management succession on the community level additional holding companies. It should be noted at the Nation’s many smaller, independent banks. that considerations relating to the present financial However, the Board has long held that, as a condition and managerial resources of Bank are general matter, such a less restrictive policy with considered satisfactory; however, the Board is of respect to financial considerations should not apply the ^opinion that it should not facilitate the expan­ to those situations where the individuals are in­ sion of a chain of one-bank holding companies volved in more than a single one-bank holding when certain of the banks in that chain are in need company, such as those situations involving indi­ of improvement, nor would the public interest be viduals that are engaged in establishing a series served by such action. or chain of one-bank holding companies.4 The On the basis of all of the facts of record, and Board is also of the opinion that in analyzing in light of the factors set forth in § 3(c) of the managerial resources of a bank that is part of a Act, it is the Board’s judgment that consummation chain of one-bank holding companies it should of the subject proposal would not be in the public look beyond the subject bank involved in an ap­ interest and that the application should be denied.5 plication to the other banks that are part of that By order of the Board of Governors, effective chain. In such situations, the Board believes that June 14, 1976. it is more appropriate to analyze such organi­ Voting for this action: Chairman Burns and Gover­ zations under the standards that are normally ap­ nors Gardner, Cold well, Jackson, and Lilly. Absent and plicable in analyzing acquisitions by multibank not voting: Governors Wallich and Partee. holding companies. The application of multibank holding company standards in such circumstances (Signed) G riffith L. G arw ood, appears appropriate because of the interdepen­ [seal] Assistant Secretary of the Board. dence of the banks in a chain of commonly-owned one-bank holding companies and the distinct pos­ 5 Denial of the Applicant’s § 3(a)(1) application renders moot sibility that the financial and managerial resources Board action on the accompanying § 4(c)(8) application. of one or more of the banks in the chain may be used to support the operations of other members in the banking group. North Lawndale As mentioned previously, principals of Appli­ Economic Development Corporation, cant are also principals of eight other one-bank Chicago, Illinois holding companies and are principal shareholders Order Denying in an additional three banks. The Board notes that Formation of Bank Holding Company three of the subsidiary banks that principals of North Lawndale Economic Development Cor­ poration, Chicago, Illinois, has applied for the Board’s approval under § 3(a)(1) of the Bank Holding Company Act (“Act”) (12 U.S.C. § 4See Board’s Order dated January 15, 1974, denying the application of B H Co., Inc., Hardis, Montana (60 Federal 1842(a)(1)) of formation of a bank holding com­ Reserve B ulletin 123 (1974)); and Board’s Order dated pany through acquisition of 90 per cent of the October 17, 1975, approving application of Commercial voting shares of Community Bank of Lawndale, Bankshares, Inc., Grand Island, Nebraska (61 Federal Reserve B ulletin 807 (1975)). Chicago, Illinois (“Bank”), a proposed new bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin □ July 1976 At the same time, Applicant has applied, pursuant park, a 1,000-bed mixed-use health care facility, to § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and property management, and proposes to engage and § 225.4(b)(2) of the Board’s Regulation Y in long-term development, management, and to continue to engage in various community de­ ownership of other commercial, residential, and velopment ventures in an economically depressed industrial real estate property, including an addi­ area of Chicago, Illinois. tional industrial park, a shopping center, residen­ Notice of the applications, affording opportunity tial housing, a cable television franchise, and the for interested persons to submit comments and formation of Community Bank of Lawndale. All views, has been given in accordance with §§3 of the proposals would be developed in an area and 4 of the Act (41 Federal Register 3873). The characterized by high unemployment and substan­ time for filing comments and views has expired, tial poverty. and the Board has considered the applications and Applicant received Federal grants of funds pur­ all comments received in light of the factors set suant to Subchapter VII (Community Economic forth in § 3(c) of the Act and the considerations Development) of a Federal statute referred to as specified in § 4(c)(8) of the Act. the Community Services Act of 1974 [42 U.S.C. On the basis of the record, the applications are §§ 2981 et seq.]. The Congresssional statement denied for the reasons set forth in the Board’s of purpose of this subchapter is “to encourage the Statement, which will be released at a later date. development of special programs by which the By order of the Board of Governors, effective residents of urban and rural low-income areas may June 7, 1976. . . . with appropriate Federal assistance, improve the quality of their economic and social partici­ Voting for this action: Chairman Burns and Gover­ pation in community life in such a way as to nors Gardner, Coldwell, Jackson, Partee, and Lilly. contribute to the elminination of poverty and the Absent and not voting: Governor Wallich. establishment of permanent economic and social (Signed) G riffith L. Garwood, benefits.” The Community Services Administra­ [seal] Assistant Secretary of the Board. tion (“CSA”) is the Federal agency providing much of the grants of funds for Applicant’s ven­ tures. CSA expects community development cor­ porations such as Applicant to become profitable, Statement self-sustaining enterprises in about eight to ten North Lawndale Economic Development Cor­ years. poration, Chicago, Illinois, applied for the Board’s While this is an application under § 3(a)(1) of approval under § 3(a)(1) of the Bank Holding the Act to form a bank holding company, since Company Act (“Act”) (12 U.S.C. § 1842(a)(1)) Applicant’s express purpose is community devel­ of formation of a bank holding company through opment activities and Applicant does not propose acquisition of 90 per cent of the voting shares of to terminate such activities, the Board must deter­ Community Bank of Lawndale, Chicago, Illinois mine whether such activities are permissible under (“Bank”), a proposed new bank. At the same time § 4(c)(8) of the Act in order to approve the Applicant applied, pursuant to § 4(c)(8) of the Act application. In determining whether a proposal is (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the permissible under § 4(c)(8) of the Act the Board Board’s Regulation Y to continue to engage in must first determine that any nonbank activity various community development ventures in an involved is closely related to banking. If the Board economically depressed area of Chicago, Illinois. determines that the nonbank activity is closely By Order of June 7, 1976, the Board acted to deny related to banking, the Board must then examine those applications for reasons which are set forth the public benefits expected to be derived from in this satement. the bank holding company engaging in the activ­ Applicant is a corporation formed in 1968, for ity, and weigh them against possible adverse ef­ the stated purpose of expanding and securing the fects. economic well-being, physical redevelopment and The Applicant has not made any effort to show stability of the community in which it operates, that the individual activities themselves Eire closely an area known as the Midwest Impact Area located related to banking but rather states that its overall on the west side of Chicago, Illinois. Applicant activity qualifies as an activity which the Board is engaged in the development of an industrial has adopted as permissible under § 4(c)(8), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 641 namely, “making equity and debt investments in responsibility. Rather than being engaged in com­ corporations or projects designed primarily to pro­ munity development activities to a limited extent, mote community welfare, such as the economic Applicant has no other activities, and the question rehabilitation and development of low-income arises whether Applicant’s activities, even though areas.” not covered by the present regulation, can be found The Board’s views as to the scope of this to be closely related to banking. As indicated activity are set forth in a published Interpretation above, Applicant is designed to promote commu­ (12 CFR 225.127). In adopting this activity, the nity development and, although it is presently Board had in mind the history of the 1970 almost entirely Federally funded, Applicant has Amendments to the Act. At the time Congress was been formed as a “for-profit” corporation with the considering these amendments, the Board pro­ intention that Federal grants of funds will not posed economic development investments “sub­ continue indefinitely and that it will become a ject to careful limitations'9 as being a type of diversified, viable, self-sustaining, profit-making, nonbank investment that might be appropriate for commercial enterprise. If Applicant’s activities bank holding companies. cannot be found to be closely related to banking The “closely related” determination with re­ within the scope of the Act, Applicant’s ownership spect to this activity is grounded upon the ability of Bank while engaging at the same time in its of banks to make investments of this type. The proposed nonbanking activities would create a Board and the Comptroller of the Currency pre­ situation inconsistent with the Congressionally viously have expressed views encouraging or per­ mandated separation of banking from nonbanking mitting banks to make investments in community businesses. development projects on a limited basis. Such While the Board recognizes that Applicant’s investments by banks are regarded as being pri­ activities may well produce needed benefits to the marily contributory in nature. It is not the nature community, the Act nevertheless requires that the of the community development activity itself wich Board determine the “closely related” issue be­ renders it closely related to banking, but rather fore giving consideration to the public benefit its contributory aspects. Since banks are permitted factors. Each individual activity engaged in or to make limited contributions of a charitable nature proposed to be engaged in by Applicant is a in community development projects, a bank hold­ commercial activity and, on an individual basis, ing company’s participation in such projects may there is nothing inherent in any of the activities be regarded as being closely related to banking which would render them closely related to bank­ to the extent it is in the nature of a limited ing. In the Interpretation, as well as in a previous charitable contribution. decision involving this section of the Regulation, In accordance with the above basis for the the Board has stated that, an activity should be adoption of the activity of making investments in closely examined to determine whether it is de­ community development projects, the Board has signed primarily to promote community welfare. appropriately specified and implied limitations on This test has some relevance when applied to a the conduct of the activity by bank holding com­ limited investment by a “traditional” bank hold­ panies, in the Board’s published Interpretation ing company in order to differentiate between regarding this activity (12 CFR 225.127). Further, investments which would be considered in the as indicated in the Interpretation, “Bank holding nature of a limited contribution for social uses, companies possess a unique combination of finan­ and thus closely related to banking, and invest­ cial and managerial resources, making them par­ ments which are primarily commercial ventures ticularly suited for a meaningful and substantial designed for profit and thus not closely related to role in remedying our social ills. Section banking. While each of Applicant’s present and 225.4(a)(7) is intended to provide an opportunity proposed ventures is a commercial venture de­ for them to assume such a role.” signed for profit, this test is not useful as applied The application before the Board does not in­ to Applicant since, as a whole, Applicant has no volve the situation envisioned in the regulation purpose other than to promote community welfare. where a traditional bank holding company whose The question before the Board is whether it may activities are predominantly financial is bringing find that a community development corporation, the expertise gained in its banking business to bear or for that matter, any enterprise primarily engaged on community problems and fulfilling its civic in contributory activities for social purposes, could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin □ July 1976 be considered to be engaged in activities closely Order for Hearing related to banking. Congress might well be con­ sidered to have focused on this type of question First Arkansas Bankstock Corporation, since it has specifically exempted from the prohi­ Little Rock, Arkansas bitions of § 4 certain family-owned corporations and labor, agricultural, and horticultural organi­ First Arkansas Bankstock Corporation zations which are exempted from taxation under (“FABCO”), Little Rock, Arkansas, has filed a the Internal Revenue Code and which also own petition, dated December 16, 1975, requesting the banks. Congress, however, did not exempt chari­ Board of Governors of the Federal Reserve System table organizations or community development to make a determination pursuant to the provisions corporations. Since there is nothing inherent in the of the Bank Holding Company Act of 1956, as activity which renders it, in itself, closely related amended (12 U.S.C. § 1841 et seq.), and the to banking, other than its contributory aspect when Board’s Regulation Y (12 CFR § 225), that engaged in to a limited extent, the Board concludes FAB CO presently exercises a controlling influence that it does not have the legal authority to approve over the management and policies of United Banks Applicant’s proposal. Rather, it is a matter for of Arkansas, Inc. (“United”), a registered bank Congress to decide whether to exempt community holding company; and that through United, development corporations or other organizations FAB CO exercises a controlling influence over the which contribute to social needs from the prohibi­ management and policies of the First National tions of § 4 of the Act. Accordingly, the Board Bank in Mena (“Bank”), Mena, Arkansas. is constrained to deny Applicant’s proposal on the FAB CO further requests that the Board determine basis that Applicant’s existing and proposed activ­ that FABCO has continuously exercised a control­ ities are not closely related to banking within the ling influence over United and Bank since prior meaning of § 4(c)(8) of the Act. to December 31, 1970, the effective date of the In view of its determination that it is not within 1970 Amendments to the Bank Holding Company its power to approve this application, the Board Act. has not had occasion to consider the other statutory Notice of FABCO’s petition was published in factors. That is, whether approval of the applica­ the Federal Register on January 5, 1976 (41 Fed­ tion would provide benefits to the public such as eral Register 827). In that notice the Board invited greater convenience, increased competition, or interested persons to file written comments and/or gains in efficiency that outweigh possible adverse request a hearing with respect to FABCO’s re­ effects. The Board has, however, noted that the quested determination. Subsequently, written sub­ North Lawndale community is in need of banking missions were filed by FABCO and certain other facilities and the Board, to help ensure maximum interested parties. FABCO did not request a hear­ responsiveness to community needs, has always ing. Mr. William J. Bowen, on behalf of Com­ encouraged the ownership of local banks by indi­ mercial National Bank of Little Rock and certain viduals from the local community. Furthermore, other Arkansas banks, filed a request for an infor­ in its regulation regarding projects to promote mal hearing. However, Mr. Bowen’s request was community welfare, the Board has encouraged not timely. bank holding companies to fulfill their civic re­ Although a formal evidentiary hearing has not sponsibilities. However, in this instance, the been requested, the Board has examined the sub­ Board is unfortunately unable to find that the Bank missions of FABCO and Mr. Bowen, as well as Holding Company Act provides the authority nec­ other information available to the Board, and has essary to approve these applications in the form concluded that there are unresolved substantive proposed by Applicant. issues of fact with regard to the relationship be­ Board of Governors of the Federal Reserve tween FABCO and United, and through United, System, June 9, 1976. between FABCO and Bank, which can best be resolved by a proceeding conducted pursuant to the Board’s Rules of Practice for Formal Hearings (12 CFR Part 263). (Signed) Griffith L. Garwood, Accordingly, it is hereby ordered, that a public [seal] Assistant Secretary of the Board. hearing with respect to this matter be held before Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 643 Philip J. LaMacchia, former Administrative Law to give testimony, present evidence, or otherwise Judge, now retired, at such time and place as he participate in these proceedings should file with shall designate subsequent to a prehearing confer­ the Secretary, Board of Governors of the Federal ence. This hearing shall be conducted in accor­ Reserve System, Washington, D.C. 20551, on or dance with the Board’s Rules of Practice for For­ before August 9, 1976, a written request contain­ mal Hearings (12 CFR Part 263). ing a statement of the nature of the petitioner’s It is further ordered, that the basic issues to interest in the proceedings, the extent of the par­ be considered at said hearing are: ticipation desired, and a summary of the matters (1) whether FABCO directly or indirectly exer­ concerning which the petitioner desires to give cises a controlling influence over the management testimony or submit evidence. Requests to partici­ and policies of Bank, and if so, at what point in pate in the proceedings will be submitted to Judge time did such a controlling influence commence; LaMacchia for his determination, and persons (2) whether FABCO has, at any time, directly submitting them will be notified of his decision. or indirectly or acting through one or more other Submission of the names and identities of possible persons owned, controlled, or had power to vote witnesses can be made to Judge LaMacchia at such 25 per centum or more of any class of voting time as the date for the hearing has been deter­ securities of Bank; and mined. (3) whether FABCO has, at any time, controlled By order of the Board of Governors, effective Bank through control in any manner of the election July 1, 1976. of a majority of the directors of Bank. (Signed) Theodore E. A llison, It is further ordered, that any person desiring [seal] Secretary of the Board. Orders Approved Under Bank Holding Company Act By the Board of Governors During June 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 Leeds Holding Company, Farmers State Bank of Leeds, 6/9/76 41 F.R. 24631 Leeds, North Dakota Leeds, North Dakota 6/17/76 Tioga Bank Holding Company, The Bank of Tioga, 6/14/76 41 F.R. 25053 Tioga, North Dakota Tioga, North Dakota 6/22/76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin □ July 1976 Section 4 Board action Federal Nonbanking company (effective Register Applicant (or activity) date) citation BancOklahoma Corp., BancOklahoma Life, Inc., 6/28/76 41 F.R. 28355 Tulsa, Oklahoma Tulsa, Oklahoma 7/9/76 Security Pacific Corporation, The Bankers Investment Company, 6/21/76 41 F.R. 26756 Los Angeles, California Hutchinson, Kansas 6/29/76 Sections 3 and 4 Board action Federal Nonbanking company (effective Register Applicant Bank(s) (or activity) date) citation Dale Sprague Enter- The Farmers General insurance 6/9/76 41 F.R. 24219 prises, Inc., Blue State Bank of agency activities 6/15/76 Mound, Kansas Blue Mound, Blue Mound, Kansas Rossiter and Matney The First National General insurance 6/1/76 41 F.R. 22996 Insurance Agency, Bank of Walthill, agency activities 6/8/76 Inc., Wal thill, Walthill, Nebraska Nebraska Order Approved Under Bank Merger Act— Board action Federal (effective Register Applicant Bank(s) date) citation Baybank Newton-Waltham The Union Market National 6/4/76 41 F.R. 23758 Trust Company, Waltham, Bank of Watertown, 6/11/76 Massachusetts Watertown, Massachusetts Pending Cases Involving the Board of Governors* Save Needed Environmental Levels League v. National Urban League, et al. v. Office of the Southern California Company, et al., filed Comptroller of the Currency, et al., filed May 1976, U.S.D.C. for the Central District April 1976, U.S.D.C. for the District of of California. Columbia Circuit. Farmers & Merchants Bank of Las Cruces, New Mexico v. Board of Governors, filed *This list of pending cases does not include suits against April 1976, U.S.C.A. for the District of the Federal Reserve Banks in which the Board of Governors is not named a party. Columbia Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 645 United States ex rel. A. R. Martin-Trigona v. tLogan v. Secretary of State, et al., filed Sep­ Arthur F. Burns, et al., March 1976, tember 1975, U.S.D.C. for the District of U.S.D.C. for the District of Columbia. Columbia. Grandview Bank & Trust Company v. Board Florida Association of Insurance Agents, Inc. of Governors, filed March 1976, U.S.C.A. v. Board of Governors, and National Asso­ for the Eighth Circuit. ciation of Insurance Agents, Inc. v. Board Federated Capital Corporation v. Board of of Governors, filed August 1975, actions Governors, filed March 1976, U.S.C.A. for consolidated in U.S.C.A. for the Fifth Cir­ the District of Columbia. cuit. Association of Bank Travel Bureaus, Inc. v. Henry M. Smith v. National Bank of Boulder, Board of Governors, filed February 1976, et al., filed June 1975, U.S.D.C. for the U.S.C.A. for the Seventh Circuit. Northern District of Texas. Memphis Trust Company v. Board of Gover­ Bank of Boulder v. Board of Governors, et al., nors, filed February 1976, U.S.D.C. for the filed June 1975, U.S.C.A. for the Tenth Cir­ Western District of Tennessee. cuit. First Lincolnwood Corporation v. Board of t tDavidR. Merrill, etal. v. Federal Open Market Governors, filed February 1976, U.S.C.A. Committee of the Federal Reserve System, for the Seventh Circuit. filed May 1975, U.S.D.C. for the District of Helen C. Hatten, et al. v. Board of Governors, Columbia, appeal pending, U.S.C.A. for the filed January 1976, U.S.D.C. for the District District of Columbia. of Connecticut. Curvin J. Trone v. United States, filed April International Bank v. Board of Governors, filed 1975, U.S. Court of Claims. December 1975, U. S. C. A. for the District of Richard S. Kaye v. Arthur F. Burns, et al., Columbia. filed April 1975, U.S.D.C. for the Southern Robert Farms, Inc. v. Comptroller of the Cur­ District of New York. rency, etal., filed November 1975, U.S.D.C. Louis J. Roussel v. Board of Governors, filed for the Southern District of California. April 1975, U.S.D.C. for the Eastern District National Computer Analysts, Inc. v. Decimus of Louisiana. Corporation, et al., filed November 1975, Georgia Association of Insurance Agents, et al. U.S.D.C. for the District of New Jersey, v. Board of Governors, filed October 1974, tPeter E. Blum v. First National Holding Cor­ U.S.C.A. for the Fifth Circuit. poration, filed November 1975, U.S.D.C. for Alabama Association of Insurance Agents, et the Northern District of Georgia, al. v. Board of Governors, filed July 1974, fPeter E. Blum v. Morgan Guaranty Trust Co., U.S.C.A. for the Fifth Circuit, et al., filed October 1975, U.S.D.C. for the tInvestment Company Institute v. Board of Gov­ Northern District of Georgia. ernors, dismissed July 1975, U.S.D.C. for A. R. Martin-Trigona v. Board of Governors, the District of Columbia, appeal pending, et al., filed September 1975, U.S.D.C. for U.S.C.A. for the District of Columbia Cir­ the Northern District of Illinois. cuit. East Lansing State Bank v. Board of Gover­ nors, filed December 1973, U.S.C.A. for the Sixth Circuit, tConsumers Union of the United States, Inc., etal. v. Board of Governors, filed September fDecisions have been handed down in these cases, subject 1973, U.S.D.C. for the District of Columbia. to appeals noted. Bankers Trust New York Corporation v. Board of Governors, filed May 1973, U.S.C. A. for $The Board of Governors is not named as a party in this action. the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Announcements REGULATIONS B AND Z: The amendment of the regulation, which re­ Amendments places an interpretation of Regulation Z, had been proposed for public comment on March 2. The Board of Governors has amended its regula­ tions, effective July 30, 1976, to implement recent changes in consumer credit protection laws in­ REGULATIONS D AND Q: tended to make compliance easier, especially for Amendments and Criteria small creditors. The Board amended its Regulation B (Equal The Board of Governors has adopted amendments Credit Opportunity) and Regulation Z (Truth in to its regulations to provide greater flexibility to Lending) to authorize certain members of its staff banks in adding to their capital structure. to issue interpretations of the regulations. Credi­ Together with these amendments—to Regula­ tors acting in conformity with these interpretations tion D (Reserves of Member Banks) and Regula­ cannot be held liable for violating the regulations tion Q (Interest on Deposits)—the Board made or the laws that the regulations implement. public the criteria that it will use in evaluating The Congress had recently amended the Truth requests by State member banks for approval of in Lending and Equal Credit Opportunity Acts to new subordinated debt and debenture issues as give the Board authority to permit such interpreta­ additions to the banks’ capital structure. tions by its staff, in response to concerns expressed The most significant change in the regulatory by creditors (especially small creditors, with lim­ amendments adopted—from those proposed by the ited access to legal counsel) about the difficulty Board on July 2, 1975—was the introduction of of complying with the many complex requirements a 5-year minimum maturity requirement for any of the Acts. note in a serial issue. Another new provision The official staff interpretations will clarify allows Federal bank regulators to waive certain technical points in the Board’s Regulations B and repayment requirements in exigent circumstances. Z that do not have broad policy implications. The The criteria have been simplified and made more staff interpretations will be published in the Fed­ flexible. eral Register. The regulatory amendments and the criteria The Board simultaneously established proce­ were effective July 26, 1976. The Comptroller of dures for Board review of staff interpretations upon the Currency is issuing similar criteria for national formal request by interested parties. banks. The Federal Deposit Insurance Corporation The Board of Governors has also amended its is issuing regulatory amendments substantially Regulation Z to spell out the way in which finance similar to those adopted by the Board. charges must be described, effective August 6, 1976. The Regulatory Amendments In some instances extensions of credit may involve more than one type of finance charge, such The amendments to Regulations D and Q revise as charges for interest, a loan fee, or an investiga­ the definition of deposits in those regulations. The tion fee. In these cases under the regulation, each principal amendments, as adopted, provide that: type of finance charge must be described. How­ 1. An issue of subordinated debt to be used as ever, the amended regulation indicates that when an addition to the capital of a State member bank only one type of finance charge is involved, the will be free of reserve requirements and interest nature of that charge need not be described. rate ceilings if the issue has an average maturity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 647 of 7 years or more. (This modifies the present the earnings coverage test, the retained net income requirement that a subordinated debt obligation of test, and the test relating to avoidance of debt a member bank must have an original maturity repayment concentrations by not specifying nu­ of 7 years or more in order to qualify for exemp­ merical standards for these criteria. The Board has tion from reserve and interest rate requirements.) also incorporated a more general version of the In a related action the Board issued an interpreta­ requirement for accumulation of equity over the tion explaining the calculation of weighted- life of the debt in the retained net income test. average maturity. A new provision, intended to be of assistance 2. No note in a serial issue may have a maturity to smaller banks, is an exception to the Board’s of less than 5 years. general opposition to including interbank debt as 3. In exigent circumstances the appropriate capital. It permits a State member bank to include Federal bank regulatory agency may waive re­ as capital up to $2 million of subordinated debt quirements in the regulations that scheduled issued to an unrelated banking organization. There repayments be made at least annually and in are, in addition, a number of technical changes. amounts not less than in the previous year. In making known its criteria for assessing sub­ 4. The issuing bank must obtain the approval ordinated debt and debenture issues as additions of the appropriate Federal bank regulator for any to capital, the Board stressed that approval of redemption of an issue prior to maturity, or for applications for debt issues by banks is not to be any payment pursuant to acceleration of maturity regarded as a substitute for, but rather as a sup­ in event of default. plement to, normal investor evaluation of the pro­ 5. Federal bank regulators may make excep­ posed issue. tions, in certain limited circumstances, to the rule The Board also stressed that the criteria are not that an obligation that is exempt from reserve to be regarded, and would not be administered, requirements and interest rate ceilings must have as a rigid set of rules in addition to those set forth a minimum denomination of $500. in Regulations D and Q. Rather, the Board expects The amendments to Regulations D and Q—as to administer them flexibly, taking into account well as the criteria—apply to new debt issues acted the range of financial and other information avail­ upon after the effective date of the amendments. able. These other indicators include the recent In all cases, the appropriate Federal bank regulator trend and stability of earnings, the impact on is the Comptroller of the Currency for national recent earnings of unusual income and expenses, banks, the Board of Governors of the Federal recent acquisitions or mergers through purchase Reserve System for State member banks, and the of assets, prospective growth of the bank, quality Federal Deposit Insurance Corporation for State of management, quality of assets, earnings cover­ nonmember banks. age of loan losses, sensitivity of interest income and expense to changes in market rates, degree The Criteria of reliance on volatile sources of funds, the relative strength of earnings of any nonbank affiliates or In connection with its adoption of amendments to subsidiaries, and the bank’s need for additional the definitions of deposits in Regulations D and capital and prospects for raising new equity. Q, the Board approved issuance of criteria to be Criteria for evaluation by the Board of a subor­ applied in evaluating requests by State member dinated debt issue as an addition to a State member banks for approval of new subordinated notes and bank’s capital structure are as follows: debentures as an addition to the capital structure of the issuing bank. 1. MAXIMUM RATIO OF DEBT TO EQ­ The application of these criteria is intended to UITY. The total amount of outstanding subordi­ encourage the accumulation by State member nated capital notes and debentures of a bank’, banks of an adequate cushion of equity capital, including the debt proposed to be issued but ex­ to protect against excessive concentrations of debt cluding any debt to be retired out of the proceeds, repayments in any 1 year, and to promote safe should not exceed 50 per cent of a State member and sound banking practices. bank’s equity capital base at the time of the new In order to make the criteria more flexible than issue. However, banks with significant asset or those previously proposed, the Board has revised management problems generally would not be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 Federal Reserve Bulletin □ July 1976 entitled to that high a percentage. For this test, action to resolve a problem bank situation, or a bank’s equity capital base includes capital stock, unduly interfering with the ability of the bank to surplus, undivided profits, capital reserves, and all conduct normal banking operations. reserves for losses on loans, including any related deferred tax liability. OTC MARGIN STOCKS: 2. EARNINGS COVERAGE OF FIXED Amended Criteria CHARGES. A State member bank proposing to issue subordinated debt should demonstrate that The Board of Governors has amended, effective its recent income record is sufficient to provide August 6, 1976, the criteria that over-the-counter clear assurance of that bank’s continuing ability (OTC) stocks must meet and continue to meet to to pay the additional fixed charges out of current be included on its List of OTC Margin Stocks. earnings. More than 800 stocks are now on the List and subject to the Board’s margin regulations. 3. RETAINED NET INCOME. A State member The Board’s action reflects the changes that have bank proposing to issue subordinated debt should occurred in the OTC market in recent years, par­ demonstrate that its recent level of retained net ticularly the increased competition among the se­ income, viewed in relation to intended dividend curities markets and the impact of the National policy, exceeds annual pro forma amortization of Association of Securities Dealers Automated all subordinated notes and debentures by a suffi­ Quotation System (NASDAQ). cient margin to clearly assure that bank’s ability to replace each debt issue with equity by the time of maturity. REGULATION Q: Order Granting 4. AVOIDANCE OF DEBT REPAYMENT Temporary Suspension of CONCENTRATIONS. A State member bank pro­ Early Withdrawal Penalty posing to issue subordinated debt should avoid undue concentration of debt repayment in any 1 The Board of Governors has made it possible for year. member banks to give special emergency financial assistance to victims of the Teton Dam collapse. 5. APPROVAL OF INTERBANK DEBT The Board’s action applies to individuals or TRANSACTIONS. In general, the Board does not businesses who suffer financial loss, due to the intend to approve a subordinated note or debenture bursting of the dam, in the five-county area of issued by one bank directly or indirectly (through Idaho declared a major disaster area by the Pres­ a holding company or otherwise) to a banking ident on June 6 (Bonneville, Fremont, Madison, organization other than the issuing bank’s parent Jefferson, and Bingham counties). holding company, except when that issue, together To assist victims of the disaster, the Board gave with other subordinated debt outstanding at that permission to member banks, and encouraged bank and held by such banking organization, ex­ them, to permit early withdrawal of time deposits ceeds $2 million. without penalty, upon a showing that the depositor 6. COVENANTS IN CONFLICT WITH SAFE has suffered a loss related to the disaster. AND SOUND BANKING PRACTICES. No in­ The Board’s action is retroactive to June 6, denture or other contract covering the issuance of 1976, and will remain in effect through December a subordinated note or debenture by a State mem­ 31, 1976. The action applies to. time depositors ber bank shall include any covenants, restrictions, in a member bank located anywhere, if the depos­ or other terms that are determined by the Board itor suffered a loss in the five-county area related to be inconsistent with safe and sound banking to the rupture of the dam. practices. Examples of such terms are those re­ A time deposit is money left on deposit with garded as impairing the ability of the bank to a bank for a specified period of time in return for comply with statutory or regulatory requirements payment of interest at a rate higher than that for regarding disposition of assets or ability to incur passbook savings. The Board’s Regulation Q pro­ additional debt, limiting the ability of the Board vides that if part or all of a deposit is withdrawn or the chartering authority to take any necessary before the end of the contract period (except in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 649 certain circumstances such as in the case of death income from public assistance programs, and good of the depositor), the depositor shall be penalized. faith exercise of rights under the Consumer Credit The penalty is reduction of the rate of interest Protection Act. The Board will hold a hearing on paid on the deposit to the passbook rate for the the proposals on August 12 and 13, 1976, and period the deposit has been held and a loss of 3 will receive written comment through September months’ interest. The Board’s action suspends the 1, 1976. penalty rule for depositors who suffer losses in the disaster area. The Board’s action is designed to give financial CHANGES IN BOARD STAFF relief in two forms: (1) to make time deposit savings immediately available to those suffering The Board of Governors has announced the ap­ losses related to the flood, and (2) to do this pointment of Uyless D. Black, Chief, Special without loss of previously earned interest. Projects Section, Division of Data Processing, as The Federal Deposit Insurance Corporation and Assistant Director in that Division, effective June the Federal Home Loan Bank Board are taking 27, 1976. similar actions for financial institutions under their Mr. Black, who joined the Board’s staff in jurisdictions. 1970, holds a B.S. from the University of New Mexico, has completed an M.S. program in com­ puter science from American University, and is PROPOSED AMENDMENTS a graduate of the Stonier Graduate School of Banking. The Board of Governors has announced proposals The Board has also announced the temporary to liberalize the conditions that govern certain appointment of Richard D. Abrahamson, Assistant borrowing by member banks from the 12 Reserve Vice President of the Federal Reserve Bank of Banks (Regulation A—Extensions of Credit by Chicago, as an Assistant Secretary of the Board, Federal Reserve Banks). The Board will receive effective August 1, 1976, replacing Joseph P. comment on the proposals through July 23, 1976. Garbarini of the Federal Reserve Bank of St. The Board has proposed amendments to its Louis. Mr. Abrahamson, who holds a B.A. from Regulation H (Membership of State Banking In­ the University of Minnesota, has been on the staff stitutions in the Federal Reserve System) and of the Federal Reserve Bank of Chicago since Regulation Y (Bank Holding Companies) relative 1971. to the operations of certain clearing agencies for stock market transactions. Comment will be re­ ceived on the proposals through July 30, 1976. SYSTEM MEMBERSHIP: The Board has issued for comment proposed Admission of State Banks amendments to its Regulation Z (Truth in Lending) to implement the Consumer Leasing Act of 1976 The following banks were admitted to membership requiring disclosures of terms under which per­ in the Federal Reserve System during the period sonal property is leased. A hearing on the proposed June 16, 1976, through July 15, 1976: amendments will be held on August 3, and the Board will receive comments through August 16, Michigan 1976. Kentwood ........Old Kent Bank of Kentwood The Board has proposed for public comment a New York revision of its Regulation B (Equal Credit Oppor­ New York ......................................UBAF Arab tunity) to implement the 1976 amendments to the American Bank Equal Credit Opportunity Act that prohibit dis­ Virginia crimination in extensions of credit based on race, Lynchburg ..........................Metropolitan Bank color, religion, national origin, age, receipt of of Central Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 Industrial Production Released for publication July 16 of basic metals and parts for consumer durables and for equipment. Output of nondurable materi­ Industrial production increased an estimated 0.3 als, however, is estimated to be unchanged; in­ per cent in June following an upward-revised in­ ventory accumulation over the last several months crease of 0.7 per cent in May. Increases of 0.6 has dampened the earlier rapid growth of textile, per cent and 0.4 per cent were registered in March paper, and chemical materials. and April, respectively. Gains in output of durable materials and business equipment during June Seasonally adjusted, ratio scale, 1967=100 were partially offset by continued weakness in production of consumer nondurable goods and nondurable materials. At 129.9 per cent of the 1967 average, the index is about 16 per cent above the March 1975 low and about IV2 per cent below the high of June 1974. The levels of both the May and June indexes were reduced by approximately 0.2 per cent as a result of the rubber strike. Auto assemblies rose in June, and production schedules for the coming months indicate some further expansion after allowance for model changeover. Output of home goods increased fur­ ther. Production of business equipment advanced an estimated 0.6 per cent in June from the down­ 1969-70=100 Annual rate, millions of units ____________1967=100 ward revised May level. The rate of growth in 1 1 2 6 0 0 - AUTOS:* ^Sales - Stocks _1 1 6 2 - _ MANUFACTURING: Nondurable .--b q u u s a i r n te e r s s t o e 2 q . u 3 i p p m er e n c t e n a t c f c ro el m er a th te e d 1. i 9 n p t e h r e ce s n e t c o ri n s d e 1 8 0 0 0 7\v ' j | yU\ A / /iJ ~ ~_ _ 10 8 Durable yv / j ~ ~ ~ in the first quarter. 60 \ \ j Domes 1 tic ou 1 tpu " t !\ l j 6 ' 1 1 l i r / l 7 ~ Strong increases in output of durable goods 1970 1972 1974 1976 1970 1972 1974 1976 F.R. indexes, seasonally adjusted. Latest figures: June. materials continued, reflecting a rise in production * Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 Per cent changes from— 1976 Industrial production Month Year Q1 to Mar. Apr. Mayp Junee ago ago Q2 Total ...................................................................... 128.1 128.6 129.5 129.9 .3 11.6 1.8 Products, total ................................................................... 128.1 128.2 128.7 129.0 .2 8.6 1.1 Final products ................................................................ 126.4 126.4 126.8 127.2 .3 7.6 1.3 Consumer goods ....................................................... 136.1 135.9 136.3 136.6 .2 9.9 1.2 Durable goods ..................................................... 140.3 141.0 142.7 143.3 .4 18.0 3.4 Nondurable goods .............................................. 134.4 133.9 133.9 134.0 .1 6.8 .2 Business equipment ................................................ 134.0 134.5 135.8 136.6 .6 7.9 2.3 Intermediate products ................................................. 134.9 134.9 135.4 135.4 12.1 .4 Construction products ............................................ 128.7 128.1 130.0 129.6 -*.’3 15.1 .6 Materials .............................................................................. 128.2 129.1 130-.9 131.4 .4 16.7 2.8 ^Preliminary. eEstimated. Note.—A general revision of the industrial production index was announced on June 28, 1976. Data above include information that was unavailable at that time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A2 BANK RESERVES AND RELATED ITEMS □ JULY 1976 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities1 Special ury Drawing cur­ Gold Rights rency Held Other stock certificate out­ Bought under Loans Float F.R. Total 3 account stand­ Total out­ repur­ assets 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—June............................. 88,912 87,618 1,294 271 2,046 3,098 95,119 11,620 500 9,536 July............................... 88,166 87,882 284 261 1,911 3,100 94,144 11,620 500 9,616 Aug............................... 86,829 86,348 481 211 1,691 2,953 92,395 11,604 500 9,721 Sept.............................. 89,191 87,531 1,660 396 1,823 3,060 95,277 11,599 500 9,797 Oct................................ 90,476 89,547 929 191 1,945 3,521 96,931 11,599 500 9,877 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 May............................. 95,967 94,049 1,918 121 2,071 4,051 102,951 11,599 500 10,552 June**........................... 95,592 94,289 1,303 119 2,569 4,069 102,996 11,598 530 10,623 Week ending— 1976—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 2,186 136 1,795 3,737 103,463 11,599 500 10,581 June 2....................... 95,992 93,903 2,089 242 1,962 3,795 102,717 11,598 500 10,580 9....................... 90,962 90,962 93 2,938 3,799 98,214 11.598 500 10,609 16....................... 93,804 93,520 284 49 2,508 4,251 101,056 11.598 500 10,616 23 p..................... 97,152 95,652 1,500 164 2,548 4,092 104,753 11,598 514 10,634 30*..................... 101,294 97,496 3,798 166 2,269 4,150 108,868 11,598 614 10,640 End of month 1976—Apr............................... 98,553 94,468 4,085 31 2,067 4,280 105,926 11,599 500 10,459 97,593 94,334 3,259 397 475 3,888 103,228 11,599 500 10,514 Junep........................... 101,528 97,380 4,148 316 2,950 4,233 110,054 11,598 700 10,641 Wednesday 1976—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 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 2,105 645 2,291 3,820 104,356 11,598 500 10,588 June 2 ..................... 91,425 91,425 166 2,705 4,002 98,718 11.598 500 10,596 9....................... 90,054 90,054 351 2,856 3,819 97,492 11.598 500 10,609 16....................... 96,142 94,155 1,987 61 3,570 3,965 104,415 11.598 500 10,623 23*..................... 97,459 96,803 656 835 2,904 4,155 106,051 11,598 600 10,639 30*..................... 101,528 97,380 4,148 316 2,950 4,233 110,054 11,598 700 10,641 1 Includes Federal agency issues held under repurchase agreements 3 Includes industrial loans and acceptances until Aug. 21, 1959, when beginning Dec. 1, 1966, and Federal agency issues bought outright be­ industrial loan program was discontinued. For holdings of acceptances ginning Sept. 29, 1971. on Wed. and end-of-month dates, see p. A-10. See also note 3. 2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S. 4 Beginning July 1973, this item includes certain deposits of domestic Govt, securities pledged with F.R. Banks—and excludes (if any) securities nonmember banks and foreign-owned banking institutions held with sold and scheduled to be bought back under matched sale-purchase member banks and redeposited in full with F.R. Banks in connection transactions. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 F.R. Period or date in cash lia­ cir­ hold­ bilities cula­ ings and With Cur­ tion Treas­ For­ Other 4 capital F.R. rency Total 6 ury eign Banks and coin 5 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. 80,607 355 3,353 272 989 3,191 28,007 6,969 34,976 ..............................1975—June 81,758 358 2,207 269 711 3,135 27,442 7,213 34,655 81,822 368 818 274 660 3,096 27,183 7,299 34,482 81,907 362 3,415 308 798 3,169 27,215 7,431 34,646 82,215 387 4,940 271 632 3,208 27,254 7,313 34,567 83,740 415 4,333 297 649 3,276 27,215 7,356 34,571 85,810 452 3,955 259 906 3,247 27,215 7,773 34,989 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 86,565 524 5,211 254 815 3,203 26,345 7,568 34,063 87,389 507 7,215 286 655 3,314 26,236 7,838 34,228 88,547 510 6,778 252 784 3,275 25,601 7,899 33,660 Week ending— 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 87,106 527 6,003 232 846 3,236 27,208 7,088 34,447 86,627 516 6,861 238 821 3,334 26,610 7,623 34,384 86,745 526 8,910 284 815 3,389 27,208 7,937 35,296 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 87,402 493 8,055 232 624 3,409 25,927 7,513 33,597 87,890 488 6,777 275 716 3,416 25,834 7,833 33,825 88,601 503 2,951 255 669 3,056 24,885 8,082 33,127 ................................................9 88,765 507 4,050 261 1,031 3,187 25,970 7,841 33,971 88,527 513 8,348 243 723 3,333 25,813 7,637 33,610 ..............................................23* 88,378 500 11,788 251 699 3,535 26,572 8,057 34,789 End of month 86,481 536 9,806 305 762 3,456 27,140 7,937 35,228 ..............................1976—Apr. 87,657 505 6,745 303 679 3,500 26,457 7,833 34,447 88,926 500 11,972 349 847 3,564 26,835 8,057 35,052 Wednesday 86,527 522 1,456 246 767 2,978 24,435 7,600 32,185 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 87,289 513 6,046 298 795 3,061 29,702 7,937 37,791 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 26,498 7,513 34,168 ..............................................26 88,520 513 6,128 235 849 3,002 22,165 7,833 30,157 88,987 495 2,496 238 637 3,112 24,234 8,082 32,476 ................................................9 88,896 510 5,763 235 787 3,273 27,672 7,841 35,673 ..............................................16 88,594 507 11,052 254 740 3,378 24,362 7,637 32,159 88,926 500 11,972 349 847 3,564 26,835 8,057 35,052 ..............................................30* 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, 5 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 oyer 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. 6 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 □ JULY 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 1 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—Dec.................... 25,260 24,915 345 238 18 40 8 13 50 105 267 80 1968—Dec.................... 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—Dec.................... 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—Dec.................... 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—Dec.................... 31,329 31,164 165 107 25 35 1 8 — 35 22 174 42 1972—Dec.................... 31,353 31,134 219 1,049 -20 301 13 55 —42 429 — 160 264 1973—Dec.................... 35,068 34,806 262 1,298 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—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 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 34,567 34,411 156 191 65 42 31 -23 3 32 134 128 34,571 34,281 290 61 28 50 7 34 42 5 164 49 Dec.................... 34,989 34,727 262 127 13 64 63 -18 89 26 127 38 1976—Jan..................... 35,575 35,366 209 79 9 52 9 -18 17 3 13 172 40 33,953 33,939 14 76 11 -147 20 -14 1 -2 16 177 39 33,967 33,531 436 58 8 177 21 36 2 108 14 115 21 34,063 33,974 89 44 11 2 -4 8 — 47 15 138 21 34,228 33,846 382 121 11 13 29 -69 2 297 33 141 57 June?................ 33,660 33,651 9 119 19 -13 26 -12 7 -270 22 99 64 Week ending— 1975—June 4 .......... 34,511 34,177 334 84 9 18 61 19 137 160 23 11.......... 33,707 33,743 -36 38 11 -76 -32 11 — 55 2 127 25 18............ 34,937 34,603 334 77 10 80 49 12 69 173 28 25........... 34,706 34,615 91 188 11 19 97 -4 5 38 71 53 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 35,296 34,855 441 30 11 65 3 6 216 154 27 y 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 26........... 33,597 33,519 78 136 12 -53 53 30 10 32 91 51 June 2 .......... 33,825 33,372 453 242 17 60 -15 14 244 79 164 149 9........... 33,127 33,197 -70 93 14 -42 36 -13 17 -153 5 138 35 16 ........ 33,971 33,400 571 49 16 118 68 210 11 175 38 23?.......... 33,610 33,762 -152 164 22 -128 62 -41 —248 45 98 57 30?.......... 34,789 34,324 465 166 29 53 14 38 38 25 129 127 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

JULY 1976 □ MONEY MARKET BANKS A5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net surplus, or deficit (—) Gross transactions Net transactions Reporting banks and Total Bor­ week ending— Excess Net Per cent two-way Pur­ Loans row­ Net re­ Bor­ inter­ of Pur­ trans­ chases Sales to ings loans serves 1 rowings bank avg. chases 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—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 June 2.......... 201 10,982 -10,840 73.7 18,849 7,867 5,099 13,749 2,768 2,522 1,291 1 ,231 9.......... -110 15,799 -15,951 108.6 20,721 4,921 4,011 16,710 910 3,729 1,484 2,245 16.......... 250 14,728 -14.478 97.8 21,071 6,343 4,168 16,903 2,175 3,662 1,072 2,590 23.......... -39 13,126 -13,261 89.4 19,373 6,247 4,529 14,843 1,718 2,047 941 1,106 30.......... 189 10,233 -10,063 66.2 17,914 7,681 4,796 13,118 2,886 1,917 1,249 668 8 in New York City 1976—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 June 1 9 2 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1 1 0 3 2 2 5 5 3 , , , 0 3 2 1 1 6 7 7 - - - 3 4 5 , , , 2 9 3 3 1 7 5 6 0 5 8 8 4 3 9 . . . 1 5 8 5 5 4 . , , 8 6 4 6 1 8 9 2 4 1 ,2 5 5 1 9 5 7 2 4 1,1 5 5 8 9 5 3 2 4 5 5 3 , , , 0 3 30 1 1 1 7 8 34 2 1 1 , , , 2 7 3 1 9 1 9 3 9 2 2 2 6 1 8 1 1 1 2 1 1 , , , 0 1 4 3 0 3 8 8 2 23.......... -24 3,61 -3,701 62.8 4,629 1 ,012 1 ,012 3,618 1 ,293 229 1,064 30.......... 55 3,194 -3,154 51 .6 4,385 1 ,190 1 ,106 3,279 1 ,283 193 1,091 38 outside New York City 1976—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 June 2.......... 169 7,715 -7,605 86.8 14,365 6,650 3,917 10,448 2,734 1 ,123 1 ,030 93 9.......... -92 10,482 -10,581 121 .6 14.852 4,369 3,459 11,393 910 2,017 1 ,203 813 16.......... 149 9,710 -9,561 107.6 15;459 5,749 3,574 11,885 2,175 1,442 861 582 23.......... -15 9,508 -9,559 106.9 14,744 5,236 3,518 11,226 1 ,718 754 713 42 30.......... 134 7,038 -6,908 76.0 13,529 6,491 3,690 9,840 2,801 634 1,057 -423 5 in City of Chicago 1976—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 June 2.......... 9 4,167 -4,172 277.5 4,943 775 775 4,167 366 525 -159 1 9 6. . . . . . . . . . . . . . . . . . . . -1 6 3 6 5 5 , , 0 1 6 5 5 6 - - 5 5 , , 0 0 8 9 1 0 3 3 3 1 3 7 . . 7 6 5 5 , , 6 77 2 9 2 6 5 2 5 3 7 5 6 5 23 7 5 5 , ,1 0 5 6 6 4 5 5 9 8 1 5 4 43 7 6 0 1 1 1 5 5 5 23.......... -4 4,935 -4,939 315.4 5,586 651 643 4,943 331 347 -16 30.......... 32 4,020 -3,988 248.0 4,962 942 918 4,045 170 445 -275 33 others 1976—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 June 2.......... 160 3,547 -3,433 47.3 9,422 5,875 3,141 6,281 2,734 757 505 252 9.......... -79 5,418 -5,500 76.6 9,230 3,812 2,902 6,329 910 1 ,426 767 659 16.......... 82 4,554 -4,472 61 .4 9,680 5,127 2,951 6,729 2,175 857 390 467 23.......... -11 4,573 -4,620 62.6 9,157 4,584 2,875 6,282 1 ,709 423 365 57 30.......... 102 3,018 -2,920 39.0 8,567 5.549 2,772 5,795 2,777 464 612 -148 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 □ JULY 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. 13* Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 6/30/76 date rate 6/30/76 date rate 6/30/76 date3 rate 6/30/76 date rate Boston................... 5 Vi 1/19/76 6 6 1/19/76 6V4 6V4 1/19/76 7 8Vi 1/19/76 9 New York............. 5V4 1/19/76 6 6 1/19/76 6Vi 6V4 1/19/76 7 8Vi 1/19/76 9 Philadelphia.......... 5Vi 1/19/76 6 6 1/19/76 6Vi 6 Vi 1/19/76 7 8 Vi 1/19/76 9 Cleveland.............. 5 Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8Vi 1/19/76 9 Richmond.............. 51/2 1/19/76 6 6 1/19/76 6Vi 6% 1/19/76 7 8V4 1/19/76 9 5Vi 1/19/76 6 6 1/19/76 6Vi 6V4 1/19/76 7 8Vi 1/19/76 9 Chicago................. 5 Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 St. Louis................ 5Vi 1/23/76 6 6 1/23/76 6Vi 6V4 1/23/76 7 8 Vi 1/23/76 9 Minneapolis.......... 5V4 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8% 1/19/76 9 Kansas City.......... 5% 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 Dallas.................... 5 Vi 1/19/76 6 6 1/19/76 6Vi 6 Vi 1/19/76 7 8 Vi 1/19/76 9 San Francisco........ 5Vi 1/19/76 6 6 1/19/76 6Vi 6Vi 1/19/76 7 8 Vi 1/19/76 9 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 1 3 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955. 21 /z 21/2 1964—Nov. 24. 31/2-4 4 1971—Nov. 11.. 434-5 5 30. 4 4 19.. 434 434 1956—Apr. 13. 21/2-3 23/4 Dec. 13.. 41/2-434 434 Aug. 2 2 0 4 . . 2 2 * * 4 4- -3 3 2 3 34 1965—Dec. 1 6 3 . . 4 41 - / 4 2 1/2 4 4 1 1 / / 2 2 2 1 4 7 . .. . 41/ 4 2 1 - / 4 2 34 4 4 * V 4 i 31. 3 3 1967—Apr. 7. 4 -41/2 4 1973—Jan. 15.. 5 5 1957— N A o ug v . . 2 1 9 3 5 . . . , , 3 3 31 - -3 3 /2 1 i / / 2 2 3 3 3 1/2 Nov. 2 2 1 0 7 4 . . . 4 4 4 - 1/2 41/2 4 4 4 1 1 / / 2 2 A F M e p a b r r . . . 2 2 2 6 3 . . . . . . 5 5 1/ 5 2 1 - - / 5 5 2 3 V 4 i 5 5 5 V % V 4 i Dec. 2. 3 3 1968—Mar. 15. 41/2-5 41/2 May 4.. 5*4 5*4 1958—J M A M A S a e u p n a a p g r y . r t . . . . 2 2 2 1 1 1 1 2 9 7 1 4 3 8 5 2 . . . . . . . . . , , 2 2 2 2 l 1 l 1 1 3 3 * 3 3 / 4 4 2 4 4 4 4 4 1 - - 1 - * - - - - / 2 2 2 4 3 3 3 4 2 3 1/ 4 4 2 2 2 2 2 3 m 1 1 3 1 1 1 * * / / / 4 4 4 4 4 4 1969— A A D A u p e p c g r r . . . . 2 2 2 3 1 1 1 2 4 6 0 0 6 9 8 8 . . . . . . . . . 5 5 5 5 1 V * / 5 5 5 4 5 6 4 i 1 1 - 1 - - - / 5 / 5 6 4 2 2 5 1 1 1 / / / 2 2 2 5 5 5 5 5 5 5 6 6 1 1 1 1 1 1 / / / / / / 2 2 2 2 4 2 1974— J J A A u u u p l n y g r e . . 2 1 1 1 2 3 1 1 2 5 1 1 4 3 8 5 0 . . . . . . . . . . . . . . . . . 6 7 5 7 3 V 6 6 7 7 8 4 i 1 - - % - - / 6 6 8 7 2 V 1/2 i 6 6 6 6 7 7 7 8 8 V % % V i i 23. 2 2 Dec. 9.. 734-8 7*4 Oct. 24. 2 -2i/2 2 1970—Nov. 11. 534-6 6 16.. 73/4 7*4 Nov. 7. 21/2 21/2 13. 534-6 534 1959—Mar. 6. 21 / 2-3 3 Dec. 16 1 . , 51/ 5 2 3 -5 4 34 5 53 3 / 4 4 1975—Jan. 1 6 0 . . . , 7 71 1 / 4 4- - 7 7 3 3 4 4 7 7 * % 4 16. 3 3 4. 5%-5% 51/2 24., 7*4 71/4 May 29. 3 -31/2 31/2 11. 5 Vi 5 Vi Feb. 5., 63/4-71/4 6*4 June 12. 3% 31/2 7., 634 6*4 Sept. 11. 3V4-4 4 1971—Jan. 8, 5*4-51/2 51/4 Mar. 10. 61/4-634 6*4 18. 4 4 15. 5*4 5*4 14., 614 614 1960—June 1 3 0. . 3 3 V % 2 - - 4 4 4 3% 2 2 1 2 9 9 , , , 5 5 5 - - 5 5 1 1/ 4 4 5 5 5 1/4 May 2 1 3 6 . . , , 6 6 -614 6 6 S A e u p g t . . 1 1 9 4 2 . . . 3 3 3 - % 3% 3 3 3 V4 J F u e l b y . 1 1 1 9 6 3 4 43 % /4 43 - - 5 5 4 5 5 43/4 1976—Jan. 2 1 3 9 . . 5V 5 i V -6 i 5 5 * V 4 i 1963—July 17. 3 -31/2 31/2 23 5 5 In effect, June 30, 1976.... 5% 5Vi 26. 3% 31/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1956, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 a 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 A 1966—July 14,21.......... 4 4 5 Sept. 8,15.......... 6 1967—Mar. 2............... 3% 3% Mar. 16............. 3 3 1968—Jan. 11,18.......... !«* 17 12 12% 1969—Apr. 17.............. 17% 12% 13 1970—Oct. 1................. 5 Beginning Nov. 9, 1972 Net demand2,4 Time 3 Other time Effective date 0-5, maturing in— Over 55, maturing in— 0-2 2-10 10-100 100- Over Savings 400 400 180 180 30-179 days to 4 years 30-179 days to 4 years days 4 years or more days 4 years or more 1972—Nov. 9..................... 8 10 12 6 16% 17% 73 73 75 Nov. 16................... 13 1973—July 19..................... 10% 12% 13% 18 1974—Dec. 12................... 17% 6 1 1975—Feb. 13.................... 7% 10 12 13 16% Oct. 30.................... ( 8 1 3 8 1 1976—Jan. 8....................... 3 8 2% 82% In effect June 30, 1976.... 7% 10 12 13 16% 3 3 8 2% 8 1 6 8 2% 8 1 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks.......... 10 22 Net demand deposits, other banks................... 7 14 Time deposits..................................................... 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 4 per cent. The requirement was 10 per cent originally, The requirement applied to balances above a specified base, but was not was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent applicable to banks having obligations of these types aggregating less effective June 21, 1973, and was reduced to the current 4 per cent effective than $10 million. For details, including percentages and maturity classifi­ May 22, 1975. Initially certain base amounts were exempted in the com­ cations, see “Announcements” in Bulletins for May, July, Sept., and putation of the requirements, but effective Mar. 14, 1974, the last of these Dec. 1973 and Sept. and Nov. 1974. reserve-free bases were eliminated. For details, see Regulations D and M. 6 The 16 V4 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 □ JULY 1976 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type and size July 20, Sept. 26, Apr. 19, Jan. 21, Type and size July 1, Nov. 1, Nov. 27, Dec. 23, of deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits............. 41/2 Savings deposits....................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity):1, 2 30-89 days.......... 4 41/2 Less than $100,000: 90 days to 1 year. 5 30-89 days........................ 5 5 5 5 Singl 2 1 e - - y 2 m e a a y r t s e u a r o i r t r s y . m . : ... o .. r .. e .. . . .. 5 5 5V ^2 4 9 2 1 0 V -2 i d V y a 2 y e y a s r e t s a o r o s r 1 . . m y ... e . o . a . r . r . e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 6 6 % % 65 6 V 1/ 4 2 5 6 6 % % 5 6 6 V % 4 Less than $100,000: Minimum denomination 30 days to 1 year. 5 of $1,000:4 2 1 - y 2 e a y rs e a o r r s . m .... o .. r .. e .. . . . 5Vz 5 5V V 4 i 4 6 - y 6 e y ar e s a r o s r . . m .... o .. r .. e .. . . . . . . . . . . . . . . . . . . .. (5) 71/4 m 7 71 1 / 4 2 $100,000 or more: Governmental units......... («) (6) 71/2 7% 30-59 days.......... SVi (3) $100,000 or more.............. (3) (3) (3) (3) 6 9 0 0 - -1 89 7 9 d d ay ay s. s . . . . . . . . . . . . . . . . . 5V2 563/4 ( (3 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 6Vi per cent ceiling that applies to time de­ 2 Multiple-maturity time deposits include deposits that are automati­ posits maturing in 2 Vi years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 7V4 per cent was imposed on that are payable after written notice of withdrawal. certificates maturing in 4 years or more with minimum denominations 3 Maximum rates on all single-maturity time deposits in denominations of $1,000. There is no limitation 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 - - 8 5 9 9 d d a a y y s s 6 6 V 1/4 2 p p e e r r c c e e n n t t l f 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 61/4 per cent I 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) U 1937—Nov. 1 1945—Feb. 4................. 40 50 1945—Feb. 5 July 4.................. 50 50 July 5 1946—Jan. 20.................. 75 75 1946—Jan. 21 1947—Jan. 31.................. 100 100 1947—Feb. 1 1949—Mar. 29.................. 75 75 1949—Mar. 30 1951—Jan. 50 50 1951—Jan. 17 1953—Feb. 19.................. 75 75 1953—Feb. 20 1955—Jan. 3.................. 50 50 1955—Jan. 4 Apr. 22.................. 60 60 Apr. 23 1958—Jan. 15.................. 70 70 1958—Jan. 16 Aug. 50 50 Aug. 5 Oct. 15.................. 70 70 Oct. 16 1960—July 90 90 1960—July 28 1962—July 9.................. 70 70 1962—July 10 1963—Nov. 5.................. 50 50 1963—Nov. 6 1968—Mar. 10.................. 70 70 1968—Mar. 11 June 7.................. 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 55 50 55 1972—Nov. 24 1974—Jan. 2................... 65 50 65 Effective Jan. 3. 1974..................... 50 50 50 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ OPEN MARKET ACCOUNT A9 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills1 Others within 1 year2 1-5 years 5-10 years Over 10 years Period Exch., Gross Gross Redemp­ Gross Gross maturity Gross Gross Exch. or Gross Gross Exch. or Gross Gross Exch. or pur­ sales tions pur­ sales shifts, or pur­ sales maturity pur­ sales maturity pur­ sales maturity chases chases redemp­ chases shifts chases shifts chases shifts tions 1970. 11,074 5,214 2,160 99 -3,483 848 5,430 249 -1,845 93 -102 1971. 8,896 3,642 1,064 1,036 -6,462 1,338 4,672 933 685 311 150 1972., 8,522 6,467 2,545 125 2,933 789 -1,405 539 -2,094 167 250 1973. 15,517 4,880 3,405 1,396 -140 579 -2,028 500 895 129 87 1974. 11,660 5,830 4,550 450 -1,314 797 -697 434 1,675 196 205 1975. 11,562 5,599 6,431 3,886 -3,553 2,863 4,275 1,510 -4,697 1,070 848 1975—May. 903 354 407 50 -3,131 6,635 -3,801 298 June. 421 161 612 20 691 488 -529 180 109 July.. 1,505 800 Aug.. 312 282 400 2,002 -2,144 150 1,299 64 -1,444 47 300 Sept.. 2,118 200 278 562 -278 137 124 Oct.., 1,263 ’*766 400 48 -48 Nov.. 983 652 919 43 -265 267 -135 155 244 100 Dec.. 1,984 200 31 28 118 -28 78 71 1976—Jan... 243 1,239 600 37 110 100 73 Feb.. 1,664 389 40 -1,153 177 174 63 968 59 200 Mar.. 1,069 511 600 38 349 185 107 -349 63 24 Apr.. 2,869 1,355 1,000 27 72 249 70 -72 51 38 May. 1,335 1,224 403 2,602 -3,105 -4i8 ' 85 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—May.. 953 354 407 2,996 3,044 19,489 21,952 -2,224 97 -567 55 -375 -3,207 J Ju u l n y e . . . . 1,217 1,5 1 0 6 5 1 4 80 5 0 0 1 1 5 2 , , 5 9 3 1 2 4 1 1 5 3 , , 1 0 3 2 9 6 1 5 5 , , 9 2 7 1 7 9 1 6 6 , , 1 8 4 1 6 0 -2 - ,8 87 6 3 6 2 6 - - 2 6 5 1 5 -62 3 -121 - - 1 2, , 9 3 2 1 6 7 Aug... "l, 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—J F a e n b . . . .. . 2,0 5 0 6 3 3 1,239 2 6 0 0 0 0 1 7 1 , , 5 4 5 0 1 7 1 7 1 , , 9 5 5 0 7 3 1 1 7 8 , , 7 1 5 3 3 5 2 1 0 4 , , 9 9 4 1 3 9 2 - , 9 0 8 3 2 7 2 2 9 3 7 9 -2 1 3 8 6 7 -70 5 -10 9 9 8 -12,,150617 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 May.. 1,335 1,224 403 12,417 12,355 20,355 21,203 -1,202 240 22 -51 -69 -1,080 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 □ JULY 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 1975 June 30 June 23 June 16 June 9 June 2 June 30 May 31 June 30 (Gold certificate account................................ 11,598 11,598 11,598 11,598 11,598 11,598 11,598 11,620 Special Drawing Rights certificate account. 700 600 500 500 500 700 500 500 Cash...................................................... 339 345 344 344 342 339 357 360 Loans: Member bank borrowings.............. 316 835 61 351 166 316 397 561 Other................................................ Acceptances: Bought outright............................... 361 381 396 412 420 361 439 682 Held under repurchase agreements. 666 317 281 666 436 Federal agency obligations: Bought outright................................ 6,805 6,805 6,805 6,827 6,827 6,805 6,827 5,085 Held under repurchase agreements. 277 43 56 277 154 61 U.S. Govt, securities: Bought outright: Bills........................... 38,729 38,551 36,493 32,370 33,741 38,729 36,650 37,172 Certificates—Special. Other.. Notes........................ 45,749 45,382 44,856 44,856 44,856 45,749 44,856 42,886 Bonds....................... 6,097 6,065 6,001 6,001 6,001 6,097 6,001 4,522 Total bought outright1................... 90,575 89,998 87,350 83,227 84,598 90,575 87,507 84,580 Held under repurchase agreements. 3,871 613 1,931 3,871 3,105 169 Total U.S. Govt, securities. 94,446 90,611 89,281 83,227 84,598 94,446 90,612 84,749 Total loans and securities.................. 102,871 98,992 96,880 90,817 92,011 102,871 98,865 91,138 Cash items in process of collection... *8,417 *8,640 9,985 7,900 9,414 *8,417 5,221 5,966 Bank premises..................................... 346 346 342 343 342 346 343 288 Operating equipment........................... 18 18 18 19 18 18 18 2 Other assets: Denominated in foreign currencies. 1,165 1,059 954 964 954 1,165 938 25 All other........................................... 2,704 2,732 2,651 2,493 2,688 2,704 2,589 2,682 Total assets. *128,158 *124,330 123,272 114,978 117,867 *128,158 120,429 112,581 Liabilities F.R. notes........................................... 79,124 78,808 79,127 79,217 78,779 79,124 77,999 72,229 Deposits: Member bank reserves.................. *26,835 *24,362 27,672 24,234 22,165 *26,835 26,457 25,976 U.S. Treasury—General account. 11,972 11,052 5,763 2,496 6,128 11,972 6,745 5,773 Foreign........................................... 349 254 235 238 235 349 303 373 Other: All other 2................................. 847 740 787 637 847 679 701 Total deposits. *40,003 *36,408 27,605 29,377 40,003 34,184 32,823 Deferred availability cash items........... 5,467 5,736 6,415 5,044 6,709 5,467 4,746 4,175 Other liabilities and accrued dividends. 1 ,159 1,093 1,106 1,054 1,051 1,159 1,117 1,076 Total liabilities. *125,753 *122,045 121,105 112,920 115,916 *125,753 118,046 110,303 Capital accounts Capital paid in............................................................... 959 958 954 954 953 959 953 909 Surplus............................................................................ 929 929 929 929 929 929 929 897 Other capital accounts................................................... 517 398 284 175 69 517 501 472 Total liabilities and capital accounts............................ *128,158 *124,330 123,272 114,978 117,867 *128,158 120,429 112,581 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................ 45,187 45,576 45,642 45,503 45,832 45,187 45,867 39,760 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)......... 83,987 83,926 83,783 83,598 83,152 83,987 83,093 77,001 Collateral held against notes outstanding: Gold certificate account................................ 11,596 11,596 11,596 11,596 11,596 11,596 11,596 11,596 Special Drawing Rights certificate account. 365 304 302 302 302 365 302 292 Acceptances.................................................... U.S. Govt, securities..................................... 73,710 73,510 73,260 73,180 73,035 73,710 73,035 68,650 Total collateral. 85,671 85,410 85,158 85,078 84,933 85,671 84,933 80,538 1 See note 2 on p. A-2. 2 See note 6 on p. A-2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 June 30 June 23 June 16 June 9 June 2 June 30 May 31 June 30 316 835 60 351 166 316 397 560 311 834 56 346 162 311 390 552 5 1 4 5 4 5 7 8 91 days to 1 year......................................................... 1,027 698 677 412 420 1,027 875 682 699 359 327 52 60 699 515 93 200 186 183 190 179 200 183 383 128 153 167 170 181 128 177 206 94,446 90,611 89,281 83,227 84,598 94,446 90,612 84,749 7,569 6,530 6,563 2,706 1,722 7,569 5,218 3,891 18,650 18,092 16,505 14,629 16,899 18,650 19,637 21,187 26,756 25,311 26,098 25,777 25,862 26,756 25,612 20,972 28,531 27,853 27,466 27,466 27,466 28,531 27,496 28,366 8,283 8,200 8,088 8,088 8,088 8,283 8,088 7,137 Over 10 years.............................................................. 4,657 4,625 4,561 4,561 4,561 4,657 4,561 3,196 Federal agency obligations—Total............................... 7,082 6,848 6,861 6,827 6,827 7,082 6,981 5,146 Within 15 days1.......................................................... 303 69 82 110 110 303 326 109 16-90 days................................................................... 307 306 306 251 199 307 199 282 91 days to 1 year........................................................ 914 902 902 913 965 914 903 495 3,374 3,374 3,374 3,356 3,356 3,374 3,356 2,552 5-10 years..................................................-............... 1,491 1,504 1,504 1,504 1,504 1,491 1,504 1,147 Over 10 years.............................................................. 693 693 693 693 693 693 693 561 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—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 7,538.3 132.4 366.0 115.4 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 5,561.5 13,845.4 8,283.9 144.6 377.5 131.4 92.5 77.2 Apr............................... '25,795.1 12,482.8 r5,304.5 r13,312.3 ’•8,012.8 140.3 374.9 124.1 88.4 74.3 May............................. 25,507.3 12,179.0 5,335.0 13,328.3 7,993.3 139.3 380.2 126.9 88.2 73.3 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 □ JULY 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi Mo Mi Mi M6 Mi m2 Mi Mi Ms Composition of measures is described in the Note below. 1973—Dec............................... 270.5 571.4 919.5 634.9 982.9 278.3 576.5 921.8 640.5 985.8 1974—Dec............................... 283.1 612.4 981 .6 702.2 1.071.4 291.3 617.5 983.8 708.0 1,074.3 1975—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 Oct.. ............................ 293.4 655.8 1.075.8 736.7 1,156.6 292.3 653.2 1,070.4 736.9 1,154.1 .............................. 295.6 662.1 1,086.5 7N43o.v9 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 1,178.1 295.1 670.2 1,103.7 7149796.4—Jan1..,.1..8..2.....9.. ...........3..0.1.. ...0. 675.3 1,107.1 753.7 1,185.6 Feb.. ............................ 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 r\ ,141.1 763.4 rl ,212.5 303.3 696.7 rl ,149.2 766.1 rl ,218.6 May............................. 303.3 697.2 1,151 .2 765.4 1,219.4 298.4 695.6 1,151.9 763.0 1,219.2 Note.—Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). Mi: Averages of daily figures for (1) demand deposits of commercial Mk\ Mi plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in M5: M% plus large negotiable CD’s. process of collection and F.R. float; (2) foreign demand balances at F.R. For a description of the latest revisions in Ml, M2, Ms, M4, and Mb, 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 M%: 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 M3: 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 tions^ 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—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 r449.2 76.3 161 .7 62.3 227.0 69.4 393.4 462.8 r452.5 3.8 May.............. 77.4 226.0 68.2 393.9 462.0 454.0 77.2 157.1 61 .0 221 .2 67.4 397.2 464.6 456.3 3.7 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above. mutual savings banks, for savings capital at savings and loan associations, and for credit union shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 requirementsi 3 Total member bank deposits plus nondeposit S. A. N.S.A. items4 Period Non­ Total bor­ Re­ Avail­ Demand Demand rowed quired able2 Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1973—Dec.... 34.98 33.69 34.68 32.78 442.8 279.7 158.1 5.0 447.5 278.5 164.0 5.0 449.4 454.0 1974—Dec. 1.. 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—Mayx.. 34.74 34.67 34.58 32.77 493.7 328.6 162.6 2.5 491 .8 329.8 159.0 3.0 501 .2 499.2 June... 35.07 34.85 34.87 32.90 499.5 330.5 165.8 3.2 497.5 330.2 164.2 3.1 506.5 504.5 July. .. 34.98 34.68 34.79 32.89 498.3 330.8 164.9 2.6 497.2 330.2 164.5 2.5 505.1 504.0 Aug— 34.88 34.67 34.69 32.77 496.3 328.4 165.1 2.8 494.8 330.5 162.3 2.0 503.3 501 .8 Sept.... 34.99 34.59 34.80 32.77 498.4 329.8 165.6 3.0 499.1 332.2 164.0 2.9 505.5 506.1 Oct.1.. 34.79 34.60 34.58 32.61 500,1 333.1 164.0 3.0 500.4 334.7 163.3 2.5 508.0 508.3 Nov.... 34.73 34.67 34.44 32.43 505.9 336.1 165.9 3.9 503.6 334.3 166.7 2.6 514.1 511 .9 Dec.... 34.75 34.62 34.49 32.44 506.0 338.7 164.4 3.0 510.9 337.2 170.7 3.1 514.4 519.3 1976—Jan.1. . 34.32 34.24 34.08 32.17 506.2 338.9 164.7 2.6 511 .1 337.9 170.3 2.9 514.1 519.0 Feb.... 34.05 33.97 33.83 31 .85 507.6 339.5 165.5 2.6 504.2 337.5 163.4 3.4 515.6 512.2 Mar.... 34.00 33.95 33.78 31 .75 507.8 339.4 165.8 2.5 506.4 339.6 163.9 2.9 516.0 514.7 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 May... 34.14 34.02 33.93 31.95 507.8 338.3 167.6 2.3 506.0 339.9 163.4 2.8 515.3 513.6 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 (III 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 Total i loans Plus Treas­ Other4 ments1 Total i loans Plus Treas­ Other4 sold2 Total loans ury sold2 Total loans ury sold2 sold2 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—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 r175.4 '178.2 76.7 144.5 712.5 492.8 497.3 '175.8 '178.6 75.4 144.3 Oct. 29----- 716.3 495.0 499.7 r176.3 '179.2 76.0 145.3 714.6 493.7 498.4 '175.3 '178.2 75.9 144.9 Nov. 26----- 722.2 498.5 503.2 '•177.1 '179.9 76.8 146.9 722.4 497.6 502.3 '176.5 '179.3 79.4 145.4 Dec. 31___ 721.1 496.9 501.3 r176.0 '178.5 79.4 144.8 737.0 507.4 511.8 '179.3 '181.8 84.1 145.5 1976—Jan. 28*. . . 723.3 497.3 501.6 '176.6 '179.1 81.0 145.0 721.4 492.6 496.9 '174.4 '176.9 84.8 144.0 Feb. 25*. . . 726.7 497.8 502.3 '175.1 '177.8 84.4 144.5 720.8 491.9 496.4 '173.5 '176.2 85.4 143.6 Mar. 31*. . . 731.2 499.7 503.9 '171.4 '174.0 88.2 143.3 729.6 496.9 501.1 '171.3 '173.9 89.3 143.5 Apr. 28*. . . 734.5 500.5 504.7 '170.5 '173.1 90.0 144.0 732.1 496.7 500.9 '170.6 '173.2 90.2 145.2 May 26p. .. 737.6 500.6 r505.0 '170.7 '173.4 93.0 144.0 735.1 500.0 '504.4 '170.8 '173.5 90.5 144.6 June 30p. . . 738.8 500.7 505.2 170.2 173.0 94.0 144.1 743.3 507.2 511.7 172.4 175.2 90.8 145.3 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 to 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 a JULY 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 Loa l ns ifrS. Other ca a p c i ­ tal Total 3 De­ Demand ings counts6 banks Treas­ counts4 mand Time Time 5 ury U.S. Other Govt. Last-Wednesday-of-month series7 All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 31 8.. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 24C 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 1,7991 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 31».. 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 ,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 ,912 47,211 13,783 1972—Dec. 31... 598, £ 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 ,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 ,994 58,128 14,171 1974—Dec. 31... 744,107 549,183 54,451 140,473128,042 919.552 747,903 43,48311,496 4,807 267,506 420,611 ,369 63,650 14,465 1975—June 30... 747,551 535,493 68,191 868128,716 930,719 754,324 42,582 11.209 3,117 264,027 433,389 62.420 66,557 14,573 July 30... 738,060 525,250 69.400 410106,840 899,590 723,730 33,180 10,830 2,220 243,000 434,500 61,870 66,080 14,583 Aug. 27... 741.630 525,780 72,020 830104,750 900,870 724,650 31,540 10,570 2,830 242.590 437,120 59,920 66,620 14,595 Sept. 24... 743,970 524,270 75,360 340106,220 906,410 726,840 31,330 10,99q 3,1"" 240,570 440,770 61,030 66,980 14,612 Oct. 29... 747,250 526,420 75,940 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 79.400 390123,150 939,310 753,000 34.560 11,1601 3,530 257,640 446,110 66.780 68,000 14.624 Dec. 31... 775,794 546,172 84,119 ,503133,614 964,918 786,252 41,81112,02d 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. 28*. 757,540 528,560 85,420143,560111,470 928,540 741,230 31.560 11,37d 4,010 242,810 451,480 68,490 69,110 14.624 Mar. 31*»io 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 32.280 10,990| 4,120 250,200 455,560 68,480 70,610 14.632 May 26*.. 767,070 531,990 90,470144,610111,740 928.140 755,010 33,62010,530 3,660 247,630 459,570 66,170 71,400 14.632 June 30*.. 779,720 543,670 90,790145,260125,160 956,910 782,860 38.28010,580 4.650 266,440 462,910 65.780 72.070 14.632 Members of F.R. System: 1941—Dec. 31... 43,521 18,021 19,539 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,! 6,619 1947—Dec. 31... 97,846 32,628 57,914 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 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 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 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 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 41,494 100,098 655, i 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974—Dec. 31... 568,532 429,537 38,921 106,995 715,615 575,563 41,06210,052 3,183 204,203 317,064 52,850 48,240 5,780 1975—June 30... 562,667 412,939 49,610 100,118107,152 716,364 573,382 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 54,355 100,046 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 54,546 100,345 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 57,471 100,747102,103 714,112 564,835 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. 3110. 569,913 406,148 64,636 99,1 100,455 710,228 573,878 34,934 9, 1,769 194,932 332.395 57,470 53,191 5,778 Apr. 28*.. 567.384 402,147 64,892 100,345 93.743 702,130 561 ,110 29,923 8,9781 3,281 189,361 329,567 62,002 53,753 5.775 May 26*.. 567,220 402,435 65,058 99,727 92,340 702,517 561,393 30,676 8,517 2,702 187,099 332,399 59,591 54,450 5.775 June 30*.. 577,430 411,647 65,617100,166104,034 726,678 585,351 35,604 8,5701 3,657 202,125 335.395 59,211 54,976 5.775 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 I960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 319.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961129,625116,266 827,081 677,358 36,248 6,429 9,856 261,530 363,294 57,531 57,603 13,964 1974—Dec. 31... 734,516 541,111 54,132139,272125,375 906,325 741,665 42,58710,693 4,799 265,444 418,142 55,988 63,039 14,216 1975—June 30... 736,164 526,272 67,833142,060125,181 914,781 746,348 41,24410,252 3,106 261,903 416,962 59,310 65,986 14,320 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 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 1973—Dec. 31... 398,236 293.555 30,962 73,718 70,711 489,470 395,767 20,357 3,876 5,955 152,705 212,874 39,696 33,125 4,659 1974—Dec. 31... 428,433 321,466 29,075 77,892 76,523 534,207 431,039 23,497 6,750 2,437 154,397 243,959 39,603 35,815 4,706 1975—June 30... 428,167 312,229 37,606 78,331 75,686 536,836 431,646 21,096 6,804 1,723 152,576 242.492 41,954 37,483 4,730 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

JULY 1976 □ COMMERCIAL BANKS A15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets3 bilities row­ ac­ of insurance Total Loans U.S. and Total3 Demand ings counts 6 banks l Treas­ Other capital De­ Time ury 2 ac­ mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941—Dec. 31... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1960—Dec. 31... 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40.733 17,727 20 6,299 1,644 1970—Dec. 319.. 94,760 66,963 11,196 16,600 25.472 125,460101,512 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 29,176 150,697123,186 12,862 1,406 2,378 51,017 55,523 9,651 10, i 1,092 1973—Dec. 31... 130,240 97,828 10,532 21,880 29,387 166,780131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—Dec. 31... 140,373 108,346 9,846 22,181 30.473 181,683 144,799 17,565 3,301 746 49,807 73,380 13,247 12,425 1,074 1975—June 30.. 134,759 100,968 12,004 21,787 31,466 179,787 141,995 18,751 2,771 443 48,621 65,654 14,380 12,773 1,064 1975—Dec. 31 . . 137,620100,823 14,720 22,077 30,451 180,495 143,409 16,265 2,712 467 50,984 67,656 12,771 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 I960—Dec. 31... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 319.. 92,399 57,489 16.039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1972—Dec. 31... 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Dec. 31... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—Dec. 31... 165,709 111,300 15,211 39,199 18,380 190,435 165,827 1,525 642 1,616 61,240 100,804 3,138 14,799 8,436 1975—June 30.. 173,238 113,074 18,223 41,942 18,029 198,157 172,707 1,397 676 940 60,706 108,816 2,976 15,730 8,526 1975—Dec. 31. . 183,645 118,609 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 1,872 329 1,291 253 13 329 852 1947—Dec. 31 2,009 474 1,280 255 576 2,643 2,251 177 185 18 '1 ,392 478 4 325 783 1960—Dec. 31... 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1970—Dec. 319.. 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—Dec. 31... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—Dec. 31... 9,981 8,461 319 2,667 13,616 6,627 897 803 2,062 2,857 2,382 611 249 1975—June 30.. 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 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 5,115 3,449 651 261 Total nonmember: 1941—Dec. 31... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1947—Dec. 31... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319.. 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31... 111,674 69,411 17,297 24,966 13,643 129,100112,764 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 16.562 154,085 134,091 1,895 633 1,850 54.406 75,305 1,726 11,429 8,223 1973—Dec. 31... 155,830 104,070 16,783 34,976 18,177 179,480155,165 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 1,624 63,302 103,661 5,520 15,410 8,685 1975—June 30. . 184,963 122,633 18,581 43,750 21.563 214,434 181,021 2,735 1,633 951 62,830 112,136 6,086 16,300 8,779 1975—Dec. 31.. 197,319 129,892 22,599 44,829 25,137 231,418 195,533 3,241 2,010 859 67,868 120,318 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 Juile 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 Iast-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 a JULY 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 U.S. Treasury.......................................................... 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 1,142 1,142 1,130 357 102 602 70 12 502 502 495 227 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 13,209 100,887 100,614 72,949 6,847 3,060 24,077 38,965 27,938 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 34,099 32,172 24,075 2,080 998 11,094 9,903 10,023 3,700 3,700 3,646 62 468 2,614 501 53 1,452 1,452 1,400 346 54 854 146 52 507,202 497,846 387,439 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 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 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 3,081 3,058 2,610 174 20 1,353 1,063 471 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 1,249 493 492 449 91 24 158 175 44 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 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 3,916 3,822 3,193 415 289 1,560 929 723 20,158 20,129 11,244 94 162 2,564 8,424 8,914 c179,348 174,316 145,930 38,553 12,002 55,749 39,626 c33,419 c106,352 106,019 75,536 4,854 1,717 26,871 42,093 c30,816 c83,205 82,969 58,830 3,153 925 21,178 33,574 c24,375 c33,401 33,279 21,963 432 163 6,600 14,769 C11,437 5,859 5,845 4,189 222 36 1,731 2,199 1,670 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 2,811 2,810 2,340 293 31 1,231 785 471 15,318 15,283 10,615 164 108 3,749 6,594 4,704 8,721 8,719 6,276 97 39 2,221 3,919 2,445 6,597 6,564 4,338 67 69 1,527 2,675 2,259 16,315 16,251 11,217 1,228 109 3,049 6,831 5,098 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

JULY 1976 o COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1975 (Assets and liabilities are shown in millions of dollars.) M[ember bankis 1 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 16,302 124,194 153,303 123,565 160,087 159,725 114,228 7,061 2,402 40,647 64,118 45,860 280 280 223 76 146 58 Mutual savings banks................................................ 517 499 490 195 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 9,758 887,033 867,204 674,411 120,489 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. 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A18 WEEKLY REPORTING BANKS □ JULY 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA (In millions of dollars) Loans Federal funds sold, etc.2 Other To brokers For pu rchasing and lealers 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 U S. Other others Total i cial cul­ Real cial Treas­ se­ and tural Pers. estate banks ury curi­ indus­ U.S. U.S. and se­ ties trial Treas­ Other Treas­ Other sales Other curi­ ury secs. ury secs. finance ties 1 secs. secs. COS., etc. Large banks— Total 1975 June 4................... 388,385 19,664 16,077 2,256 770 561 278,051 122,018 3,483 1 ,897 3,539 84 2,338 9,256 20,140 59,588 H................... 391,468 21,330 15,262 4,588 885 595277,403 122,022 3,509 1 ,961 3,373 85 2,336 9,019 20,204 59,586 18.................... 391,801 19,787 15,762 2,574 893 558277,723 122,165 3,537 1 ,306 3,438 83 2,345 9,412 20,407 59,545 25................... 385,420 15,825 12,703 1,871 637 614277,039 121,865 3,595 605 3,705 114 2,334 9,413 20,478 59,526 1976 May 5................... 387,346 18,806 15,881 1,643 637 645267,409 113,129 3,790 1,008 5,341 77 2,367 7,860 18,150 60,900 12................... 385,628 18,311 15,343 1,762 600 606266,362 112,509 3,808 782 5,320 75 2,384 7,634 18,131 61,051 19.................... 386,028 17,145 13,914 1,938 583 710267,175 112,159 3,829 900 5,859 84 2,470 7,852 18,143 61 ,261 26................... 383,527 16,197 13,223 1 ,755 542 677266,919 112,020 3,852 886 5,833 87 2,430 7,601 18,061 61,370 June 2.................... 391,422 20,347 15,375 3,568 681 723269,354 112,615 3,840 1 ,557 5,922 96 2,449 7,955 18,187 61,296 9.................... 389,153 18,459 13,562 3,472 711 714268,812 112,273 3,875 2,181 5,824 88 2,470 7,533 18,079 61,397 16.................... 390,924 18,563 14,588 2,407 788 780270,061 112,527 3,905 1 ,148 6,118 86 2,460 8,144 18,204 61,480 23.................... 386,904 17,368 13,715 2,042 776 835268,918 112,471 3,927 1 ,212 5,836 85 2,500 7,515 18,174 61,358 30.................... 390,851 19,309 15,826 1 ,940 794 749270,210 112,786 3,959 1 ,002 6,238 85 2,518 7,718 18,256 61,368 New York City 1975 June 4. . . .... 90,164 1 ,331 1 ,174 51 106 72,620 38,345 106 1 ,648 2,452 18 456 3,225 7,885 8,848 11.................... 90,620 1 ,139 1 ,013 5 121 72,449 38,429 104 1 ,605 2,308 18 465 3,134 7,847 8,850 18.................... 91 ,754 1 ,341 1 ,082 37 149 73 72,410 38,505 104 1 ,099 2,383 18 476 3,345 7,974 8,833 25.................... 90,263 745 511 79 155 72,113 38,510 106 516 2,597 49 469 3,402 7,931 8,830 1976 May 5.................... 87,342 1 ,328 874 230 4 220 67,289 34,199 77 864 3,353 13 388 2,668 6,911 9,327 12.................... 87,452 2,023 1 ,526 276 4 217 66,537 33,717 78 661 3,402 13 389 2,562 6,916 9,317 19.................... 89,102 2,580 1 ,902 339 339 66,871 33,475 78 815 3,850 14 389 2,647 6,845 9,406 26.................... 88,144 2,572 2,045 199 328 66,648 33,604 79 749 3,818 14 384 2,514 6,832 9,413 June 2 . . . .... 89,816 2,498 1,793 548 157 67,962 33,997 77 1 ,436 3,700 18 386 2,740 6,857 9,403 9.................... 88,419 1,592 951 452 189 67,856 33,728 83 1 ,953 3,636 13 392 2,527 6,786 9,404 16................... 88,828 2,141 1 ,195 584 362 67.660 33,517 83 992 3,857 13 391 2,836 6,862 9,426 23 87,828 2,902 2,189 364 349 66,792 33,461 85 1 ,075 3,603 13 394 2,504 6,803 9,382 30.................... 88,155 1,859 1,452 111 10 286 67,439 33,409 84 889 3,879 13 393 2,761 6,842 9,291 Outside New York City 1975 June 4.................... 298,221 18,333 14,903 2,205 770 455205,431 83,673 3,377 249 1 ,087 66 1 ,882 6,031 12,255 50,740 11.................... 300,848 20,191 14,249 4,583 885 474204,954 83,593 3,405 356 1,065 67 1 ,871 5,885 12,357 50,736 18.................... 300,047 18,446 14,680 2,537 744 485205,313 83,660 3,433 207 1 ,055 65 1 ,869 6,067 12,433 50,712 25.................... 295,157 15,080 12,192 1 ,792 637 459204,926 83,355 3,489 89 1 ,108 65 1 ,865 6,011 12,547 50,696 1976 May 5.................... 300,004 17,478 15,007 1 ,413 633 425200,120 78,930 3,713 144 1 ,988 64 1 ,979 5,192 11,239 51,573 12.................... 298,176 16,288 13,817 1 ,486 596 389199,825 78,792 3,730 121 1 ,918 62 1 ,995 5,072 11,215 51 ,734 19................... 296,926 14,565 12,012 1,599 583 371 200,304 78,684 3,751 85 2,009 70 2,081 5,205 11,298 51,855 26................... 295,383 13,625 11,178 1 ,556 542 349200,271 78,416 3,773 137 2,015 73 2,046 5,087 11,229 51,957 June 2................... 301,606 17,849 13,582 3,020 681 566201,392 78,618 3,763 121 2,222 78 2,063 5,215 11,330 51,893 9.................... 300,734 16,867 12,611 3,020 711 525200,956 78,545 3,792 228 2,188 75 2,078 5,006 11,293 51,993 16.................... 302,096 16,422 13,393 1,823 788 4181202,401 79,010 3,822 156 2,261 73 2,069 5,308 11,342 52,054 23.................... 299,076 14,466 11,526 1,678 776 486202,126 79,010 3,842 137 2,233 72 2,106 5 ;oi i 11,371 51,976 30.................... 302,696 17,450 14,374 1,829 784 463202,771 79,377 3,875 113 2,359 72 2,125 4,957 11,414 52,077 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

JULY 1976 □ 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 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 2,499 5,295 34,114 1,341 18,250 5,791 30,702 6,637 4,627 16,008 3,430 59,968 5,921 39,753 2,376 11,918 ..............June 4 2,311 5,235 34,102 1,333 18,126 5,799 32,262 7,679 4,662 16,542 3,379 60,473 6,130 39,881 2,410 12,052 ..........................11 2,240 5,154 34,135 1 ,267 18,456 5,767 32,835 7,984 4,911 16,499 3,441 61,456 6,581 40,329 2,403 12,143 ..........................18 2,256 5,161 34,218 1 ,399 18,105 5,735 31,695 7,190 4,810 16,416 3,279 60,861 6,663 39,794 2,381 12,023 , .........................25 1976 1,990 5,045 35,939 1 ,741 18,358 1,286 42,052 12,413 6,397 20,763 2,479 59,079 5,986 39,628 2.393 11,072 ............May 5 1,982 5.269 36,014 1,762 17,998 1,357 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 36,095 1 ,745 17,918 1,412 42,140 12,343 6,447 20,620 2,730 59,568 6,322 39,927 2,366 10,953 .........................19 2,140 5.270 36,237 1 ,831 17,730 1,429 41,399 12,204 6,490 20,001 2,704 59,012 6,222 39,644 2,354 10,792 ..........................26 2,155 5,301 36,310 1,941 18,189 ,459 42,809 13,098 6,275 20,715 2,721 58,912 6,145 39,642 2,409 10,716 ............June 2 2,090 5,530 36,352 1,801 17,851 ,532 42,563 13,475 6,200 20,312 2,576 59,319 6,123 40,240 2.393 10,563 ......................... 9 2,377 5,662 36,512 1 ,769 18,239 ,570 42,424 12,786 6,237 20,733 2,668 59,876 6,254 40,367 2,421 10,834 .........................16 2,365 5,595 36,616 1 ,756 18,072 ,564 41,331 12,458 6,129 20,132 2,612 59,287 5,875 40,306 2,432 10,674 ........................23 2,257 5,682 36,681 1,771 18,344 ,455 42,110 12,814 6,131 20,670 2,495 59,222 5,798 40,228 2,407 10,789 .........................30 New York City 1975 1,081 2,360 3,541 601 3,819 1 ,765 6,943 1 ,575 631 3,782 955 9,270 1 ,501 5,439 179 2,151 ............June 4 1,098 2,303 3,549 599 3,915 1,775 7,278 1 ,647 681 4,009 941 9,754 1 ,790 5,581 177 2,206 .........................11 1 1, , 0 0 9 6 1 7 2 2 , , 2 2 4 7 6 8 3 3, ,5 5 5 63 6 5 5 0 3 1 8 4 3, , 9 0 6 5 6 2 1 1 , ,7 7 3 4 3 9 7 7 , , 5 40 6 6 8 1 1 , , 6 7 9 3 2 2 7 7 3 3 1 8 4 4 , , 0 0 5 7 6 8 1 ,0 9 2 2 7 0 1 9 0 , , 9 4 9 3 9 5 2 2 , , 1 0 8 2 3 7 5 5, , 8 5 3 6 1 8 1 18 7 1 9 2 2, , 2 2 2 4 3 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 1 5 8 1976 675 2,140 639 3,955 1,643 9,469 3,047 850 4,932 640 9,256 1 ,467 6,036 213 1 ,540 ............May 5 659 2,382 638 3,730' 1,654 9,612 3,353 881 4,740 638 9,280 1 ,512 5,863 260 1,645 .........................12 694 2,296 614 3,640 1 ,669 9,F 3,234 1,057 4,874 724 9,762 1 ,81*0 6,172 195 1 ,585 .........................19 675 2,243 650 3,568 1,679 9,402 3,199 1,136 4,399 668 9,522 1 ,743 6,107 192 1,480 .........................26 629 2,206 3,768 766 3,690 1,711 9,857 3,446 1,040 4,687 684 9,499 1 ,785 6,004 191 1,519 ............June 2 699 2,36$ 3,787 596 3,618 1,734 9,340 3,287 935 4,445 673 9,631 1,742 6,206 1 1,495 ......................... 9 863 2,413 3,804 542 3,801 1 ,740 9,377 2,889 985 4,780 723 9,650 1 ,862 6,139 193 1,456 .........................16 870 2,380 3,807 573 3,538 1,696 8,568 2,662 882 4,361 663 9,566 1 ,699 6,265 194 1 ,408 .........................23 780 2,466 3,809 594 3,844 1 ,615 9,326 3,172 903 4,614 637 9,531 1 ,682 6,202 193 1 ,454 .........................30 Outside New York City 1975 1,418 2,935 30,573 740 14,431 4,026 23,759 5,062 3,996 12,226 2,475 50,698 4,420 34,314 2,197 9,767 .June 4 1,213 2,932 30,553 734 14,211 4,024 24,984 6,032 3,981 12,533 2,438 50,719 4,340 34,300 2.223 9,856 .......11 1,173 2,908 30,579 766 14,404 4.01 25,267 6,252 4,180 12,421 2,414 51,021 4,398 34,498 2.224 9,901 ..........18 1,165 2,883 30,655 861 14,139 4.002 24,289 5,498 4,072 12,360 2,359 50,862 4,636 34,226 2,200 9,800 ..........25 1976 1,315 2,905 32,216 1,102 14,403 6,643 32,583 9,366 5,547 15,831 1,839 49,823 4,519 33,592 2,180 9,532 ... May 1,323 2,887 32;287 1,124 14,268 6,703 32,475 9,299 5,519 15,795 1,862 49,588 4,472 33,575 2,145 9,396 1,340 2,942 32,318 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 1,465 3,027 32,453 1,181 14,162 6,750 31,997 9,005 5,354 15,602 2.036 49,490 4,479 33,537 2,162 9,312 1,526 3,095 32,542 1,175 14.499 6,748 32,952 9,652 5,235 16,028 2.037 49,413 4,360 33,638 2,218 9,197 .June 2 1,391 3,162 32,565 1,205 14,233 6,798 33,223 10,188 5,265 15,867 1,903 49,688 4,381 34,034 2,205 9,068 ........... 9 1,514 3,249 32,708 1,227 14,438 6,830 33,047 9,897 5,252 15,953 1,945 50,226 4,392 34,228 2,228 9,378 ...........16 1,495 3.215 32,809 1,183 14,534 6,868 32,763 9,796 5,247 15,771 1,949 49,721 4,176 34,041 2,238 9,266 ..........23 1,477 3.216 32,872 1,177 14.500 6,840 32,784 9,642 5,228 16,056 1,858 49,691 4,116 34,026 2,214 9,335 ..........30 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 □ JULY 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ ances ments Total in serves rency with in sub­ Other assets/ Domestic Wednesday process with and do­ sidiar­ assets total States intert)ank of F.R. mestic ies not liabil- and collec­ Banks banks consol­ tites1 polit­ For­ tion idated ical U.S. eign Total I PC sub­ Govt. Com­ Mutual govts., divi­ mer­ sav­ etc.3 sions cial ings Large banks— Total 1975 June 4....................... 34,726 24,574 4,335 11,849 1,730 37,619 503,218 163,945 117,028 6,053 2,637 24,163 784 1,262 11........................... 33,494 20,279 4,778 11,840 1,735 37,429 501,023 163,089 119,154 5,995 1,553 22,871 741 1,197 18........................... 34,400 23,592 4,755 12,217 1,739 36,515 505,019 167,006 119,411 6,192 5,008 22,771 755 1,246 2 5 32,941 24,309 4,989 11,815 1,761 36,673497,908 161,081 115,649 7,146 1,972 22,437 659 1,296 1976 May 5........................... 34,410 23,238 4,710 12,529 2,049 43,766508,048 164,974 117,561 6,548 2,962 23,953 838 1,322 12........................... 34,536 22,844 5,274 11,538 2.062 43,649 505,531 161,914 118,472 5,954 1,663 21,929 710 1,103 19........................... 33,153 21,026 5,202 11,805 2,116 42,397501,727 159,830 116,487 5,854 2,729 21,990 707 1,046 2 6 32,949 19,640 5,539 12,173 2,143 44,441 500,412 160,654 116,085 5.901 1,819 23,040 690 1,104 June 2.......................... 39,581 16,157 5,224 12,919 2,136 45,165 512,604 170,817 124,301 6,004 1,170 24,883 816 1,320 9........................... 31,493 17,941 5,253 11,914 2,110 44,515502,379 159,538 117,830 5,516 1,033 22,130 725 1,095 16........................... 38,233 21,452 5,304 12,563 2.134 44,258 514,868 174,679 124,164 6 143 5,767 24,393 774 1,140 23........................... 35,963 17,639 5,515 12,755 2.135 43,341 504,252 164,589 119,388 6,304 1,547 23,327 657 1,184 30........................... 39,239 20,279 5,452 14,082 2,167 47,807519,877 176,691 125,895 6,737 2,540 27,042 854 1,231 New York City 1975 June 4........................ 12,362 7,600 656 4,747 791 13,408 129,728 48,026 26,774 593 611 11,397 455 1,015 11.......................... 12,642 6,563 667 5,102 792 13,259 129,645 48,071 27,236 680 271 11,525 421 995 18.......................... 12,299 7,451 674 5,035 798 12,482 130,493 48,680 28,143 571 740 11,043 415 1,018 2 5 13,232 7,491 700 5,552 798 12,520 130,556 49,498 27,461 1,407 331 11,572 361 1,095 1976 May 5.......................... 11,394 7,723 746 4,870 870 14,477 127,422 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 13,826 125,746 45,609 26,605 581 403 10,397 367 829 2 6 11,943 4,467 763 5,517 927 15,137 126,898 47,800 26,696 574 373 11,617 370 881 June 2.......................... 12,621 5,029 775 4,685 938 15,353 129,217 48,244 28,382 511 91 10,467 442 1,096 9.......................... 11,201 5,267 740 5,123 936 15,101 126,787 45,230 26,450 484 116 10,326 375 850 16.......................... 12,796 5,357 716 4,865 930 14,807 128,299 49,941 27,989 584 1,308 11,590 405 807 23.......................... 14,119 3,753 756 6,108 930 14,032 127,526 49,884 27,838 731 186 12,118 326 934 30.......................... 14,864 5,024 767 7,030 947 16,076 132,863 55,104 30,771 696 469 14,157 500 991 Outside New York City 1975 June 4. 22,364 16,974 3,679 7,102 939 24,211 373,490 115,919 90,254 5,460 2,026 12,766 329 247 11. 20,852 13,716 4,111 6,738 943 24,170371,378 115,018 91,918 5,315 1,282 11,346 320 202 18. 22,101 16,141 4,081 7,182 941 24,033374,526 118,326 91,268 5,621 4,268 11,728 340 228 25. 19,709 16,818 4,289 6,263 963 24,153367,352 111,583 88,188 5,739 1,641 10,865 298 201 1976 May 5. 23,016 15,515 3,964 7,659 29,289 380,626 117,852 90,994 5,931 2,383 12,931 390 223 12. 22,586 16,180 4,521 6,636 28,958 378,248 115,881 92,509 5,379 1,367 11,526 348 217 19. 22,032 16,312 4,472 6,484 • 28,571 375,981 114,221 89,882 5,273 2,326 11,593 340 ■217 26. 21,006 15,173 4,776 6,656 i 29,304373,514 112,854 89,389 5,327 1,446 11,423 320 223 June 2. 26,960 11,128 4,449 8,234 1 29,812383,387 122,573 95,919 5,493 1,079 14,416 374 224 9. 20,292 12,674 4,513 6,791 ^ 29,414375,592 114,308 91,380 5,032 917 11,804 350 245 16. 25,437 16,095 4,588 7,698 ; 29,451 386,569 124,738 96,175 5,559 4,459 12,803 369 333 23. 21,844 13,886 4,759 6,647 i 29,309376,726 114,705 91,550 5,573 1,361 11,209 331 250 30. 24,375 15,255 4,685 7,052 > 31,731 387,014 121,587 95,124 6,041 2,071 12,885 354 240 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 funds liabili­ and sub. For­ Certi­ States pur­ ties, notes/ Wednesday eign fied and Do­ chased, etc. 9 deben­ com­ and polit­ mes­ For­ etc. 8 F.R. tures 10 mer­ offi­ Total 7 ical tic eign Banks Other cial cers’ Sav­ Other sub­ inter­ govts.3 banks checks ings divi­ bank sions Large banks— Total 1975 4,745 7,273 225,128 64,717 113,442 25,036 7,992 12,450 51 ,575 430 3,407 23,378 35,355 .................June 4 4,431 7,147 225,621 65,008 113,793 24,690 7,987 12,595 50,008 89 3,230 23,575 35,411 ..............................11 4,729 6,894 223,898 65,253 112,470 24,261 7,r" 12,553 52,258 340 3,247 22,960 35,310 ..............................18 4,591 7,331 224,504 65,359 113,240 23,871 7,870 12,708 50,189 972 3,207 22,631 35,324 ..............................25 1976 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 ...................May 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 4,886 7,129 222,879 80,091 105,183 21 ,111 6,837 8,084 51,263 599 3,662 22,078 39,277 ..............................26 5,377 6,946 222,692 79.921 105,279 20,885 6,893 8,151 53,750 128 3,740 21,993 39,484 .................June 2 5,307 5,902 223,446 79,864 105,892 20,768 6,943 8,400 53.932 324 3,759 21,867 39,513 .............................. 9 5,365 6,933 222,919 79,639 105,828 20,324 6,962 8,471 52,449 22 3,850 21,551 39,398 ..............................16 4,888 7,294 224,112 79,493 107,275 20,255 6,949 8,452 49.932 764 3,795 21,601 39,459 ..............................23 5,103 7,289 225,701 79,644 109,019 20,037 6,857 8,489 51,340 227 3,793 22,495 39,630 .............................30 New York City 1975 3,466 3,715 47,617 7,351 26,079 1 ,775 3,588 7,807 14,516 1 ,209 8,258 9.672 .................June 4 3,241 3,702 47,873 7,425 26,110 1 ,815 3,528 7,947 14,453 1 ,103 8,472 9.673 ..............................11 3,408 3,342 47,224 7,469 25,648 1 ,770 3,481 7,871 15,431 340 1 ,092 8,073 9,653 ..............................18 3,350 3,921 47,372 7,428 25,947 1 ,717 3,354 7.963 14,467 680 1 ,156 7,737 9,646 ..............................25 1976 4,069 2,721 42,588 9,211 23,218 1 ,371 2,920 4,931 15,422 1 ,677 9,580 1,033 ...................May 5 3,933 3,615 42,289 9,216 23,011 1 ,343 2,730 5,042 16,630 240 1 ,729 9,318 1 ,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 1,105 ..............................19 3,534 3,755 42,999 9,232 23,481 1 ,321 2,839 5,133 13,287 372 1,644 9,479 1 ,317 ..............................26 4,028 3,227 43,100 9,123 23,490 1,333 5,187 15,354 1 ,745 9,449 1 ,325 .................June 2 4,002 2,627 43,215 9,118 23,465 1 ,336 5,280 15,437 250 1 ,745 9,574 1 ,336 .............................. 9 4,024 3,234 42,823 9,127 23,167 1,190 5,252 12,949 1 ,901 9,359 1,326 ..............................16 3,655 4,096 42,892 9,098 23,375 1,209 5,206 11,981 435 1,746 9,275 1 ,313 ..............................23 3,715 3,805 42,989 9,010 23,677 1,157 2,846 5,257 11,294 100 1 ,672 10,359 1,345 ..............................30 Outside New York City 1975 1,279 3,558 177,511 57,366 87,363 23,261 4.404 4,643 37,059 2,198 15 ,120 25,683 .................June 4 1,190 3,445 177,748 57,583 87,683 22,875 4,459 4,648 35,555 89 2,127 15,103 25,738 ..............................11 1,321 3,552 176,674 57,784 86,822 22,491 4.404 4,682 36,827 2,155 14,887 25,657 ..............................18 1,241 3,410 177,132 57,931 87,293 22,154 4,516 4,745 35,722 '292 2,051 14,894 25,678 ..............................25 1976 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 ...................May 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 ............................19 1,352 3,374 179,880 70,859 81,702 19,790 3,998 2,951 37,976 227 2,018 12,599 27,960 ............................26 1,349 3,719 179,592 70,798 81,789 19,552 3,915 2,964 38,396 128 1,995 12,544 28,159 ...............June 2 1,305 3,275 180,231 70,746 82,427 19,432 3,908 3,120 38,495 74 2,014 12,293 28,177 ............................ 9 1,341 3,699 180,096 70,512 82,661 19,134 3,937 3,219 39,500 22 1,949 12,192 28,072 ............................16 1,233 3,198 181,220 70,395 83,900 19,046 4,006 3,246 37,951 329 2,049 12,326 28,146 ...........................23 1,388 3,484 182,712 70,634 85,342 18,880 4,011 3,232 40,046 127 2,121 12,136 28,285 j ............................30 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 WEEKLY REPORTING BANKS □ JULY 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 deposits1 Individ­ Part­ liabili­ loans and mand uals ner­ Do­ ties of (gross) invest­ deposits and ships mestic banks ad- ments ad­ non­ and govern­ All to justedn (gross) justed Issued Issued Issued Issued profit cor­ mental other16 their ad­ Total to to to to orga­ pora­ units foreign justed11 IPC’s others IPC’s others niza­ tions for branches tions profit Large banks—Total 1975 June 4............................. 284,930 369,809 102,419 82,726 54,545 28,181 35,622 18,507 17,115 64,717 2,533 11................................ 286,959 373,895 105,171 83,188 54,866 28,322 35,347 18,342 17,005 65,008 2,544 18................................ 285,275 373,799 104,827 81,536 53,568 27,968 34,719 18,099 16,620 65,253 2,368 2 5 283,640 370,461 103,731 82,047 54,141 27,906 34,444 18,020 16,424 65,359 1,882 1976 May 5................................ 276,630 369,475 103,649 67,135 44,127 23,008 28,438 14,653 13,785 75,799 2,861 1,145 116 2,684 12................................ 275,705 368,303 103,786 66,821 43,861 22,960 28,084 14,492 13,592 75,968 2,936 1,162 101 2,704 19................................ 276,784 370,080 101,958 66,976 43,909 23,067 27,709 14,321 13,388 76,016 3,029 1,229 96 3,456 2 6 276,182 368,164!102,846 68,284 44,883 23,401 27,773 14,354 13,419 75,761 3,072 1,156 102 2,811 June 2................................ 280,630^373,892 105,183 68,440 44,850 23,590 27,654 14,559 13,095 75,714 3,045 1,071 91 2,404 9................................ 280,151 373,501 104,882 69,130 45,402 23,728 27,869 14,717 13,152 75,628 3,069 1,070 97 2,944 16................................ 280,229 373,959 106,286 68,736 45,223 23,513 27,890 14,783 13,107 75,452 3,007 1,091 89 4,016 23................................ 278,770 370,824 103,752 69,416 46,475 22,941 27,997 14,896 13,101 75,296 3,043 1,061 93 3,784 30.................................. 279,891 372,768 107,870 70,683 47,541 23,142 28,321 15,327 12,994 75,665 3,039 863 77 3,673 New York City 1975 June 4............................. 73,461 87,909 23,656 28,138 17,621 10,517 8,503 5,045 3,458 7,351 1,663 11.................................. 73,252 88,509 23,633 28,227 17,663 10,564 8,641 5,068 3,573 7,425 1,856 18.................................. 73,351 89,605 24,598 27,669 17,222 10,447 8,451 4,970 3,481 7,469 1,620 2 5 72,989 88,661 24,363 27,860 17,457 10,403 8,403 4,969 3,434 7,428 1,225 1976 May 5................................. 68,711 85,793 24,127 23,496 15,332 8,164 5,949 4,024 1,925 8,613 260 251 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 2,057 19.................................. 68,524 86,506 23,6~~ 23,429 15,293 8,136 5.861 3,980 1,881 8,646 290 268 2,660 2 6 68,179 85,424 23,867 23,922 15,607 8,315 5,849 3,927 1,922 8,612 292 254 2,237 June 2.................................. 69,749 87,394 25,065 24,013 15,474 8,539 5,990 4,092 1,898 8,557 285 219 1,865 9.................................. 69,532 86.769 23,587 24,177 15,483 8,694 6,012 4,119 1,893 8.529 281 237 2,149 16.................................. 69,483 86.770 24,247 23,646 15,117 8,529 6,125 4.166 1,959 8,518 277 270 3,201 23.................................. 68,331 84,769 23,461 23,763 15,334 8,429 6,034 4,081 1,953 8,479 285 268 2,830 30.................................. 68,681 85,923 25,614 23,794 15,444 8,350 6,083 4.167 1,916 8.530 283 148 2,651 Outside New York City 1975 June 4............................... 211,469 281,900 78,763 54,588 36,924 17,664 27,119 13,462 13,657 57,366 870 11.................................. 213,707 285,386 81,538 54,961 37,203 17,758 26,706 13,274 13,432 57,583 18.................................. 211,924 284,194 80,229 53,867 36,346 17,521 26,268 13,129 13,139 57,784 748 2 5 210,651 281,800 79,368 54,187 36,684 17,503 26,041 13,051 12,990 57,931 657 1976 May 5................................ 207,919 283,682 79,522 43,639 28,795 14,844 22,489 10,629 11,860 67,186 2,601 894 560 12.................................. 207,676 283,036 80,402 43,551 28,685 14,866 22,224 10,534 11,690 67,341 2,663 920 647 19.................................. 208,260 283,574 78,270 43,547 28,616 14,931 21,848 10,341 11,507 67,370 2,739 961 796 2 6 208,003:282,740 78,979 44,362 29,276 15,086 21,924 10,427 11,497 67,149 2,780 902 574 June 2................................ 210,881 286,498 80,118 44,427 29,376 15,051 21,664 10,467 11,197 67,157 2,760 852 539 9.................................. 210,619 286,732 81,295 44,953 29,919 15,034 21,857 10,598 11,259 67,099 2,788 833 795 16.................................. 210,746 287,189 82,039 45,090 30,106 14,984 21,765 10,617 11.148 66,934 2,730 821 815 23.................................. 210,439 286,055 80,291 45,653 31,141 14,512 21,963 10,815 11.148 66,817 2,758 793 954 30................................ 211,210 286,845 82,256 46,889 32,097 14,792 22,238 11,160 11,078 67,135 2,756 715 1,022 I A See p. A-l 8. 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. 6 Includes corporate stocks. Note.—Effective Mar. 24, 1976, reclassification of loans in Chicago 1 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

JULY 1976 □ BUSINESS LOANS OF BANKS A23 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1976 1976 1976 1975 1975 1976 Industry June June June June June 1 St 2nd 30 23 16 9 2 June May Apr. II I IV half half Durable goods manufacturing: Primary metals................................. 2,099 2,150 2,167 2,142 2,137 -6 51 29 74 -48 62 26 50 Machinery........................................ 5,049 5,062 5,094 5,113 5,144 -184 -13 -217 -414 -296 -781 -710 -1 ,668 Transportation equipment............... 2,675 2,668 2,693 2,704 2,694 28 -143 -203 -318 -52 -267 -370 -465 Other fabricated metal products... 1,744 1 ,763 1 ,778 1 ,779 1 ,788 -36 -80 -26 -142 -87 -473 -229 -750 Other durable goods........................ 3,629 3,607 3,569 3,569 3,519 118 -68 73 123 53 -514 176 -688 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,281 3,116 3,152 3,052 3,056 241 -118 -113 10 -509 455 -499 468 Textiles, apparel, and leather.......... 3,308 3,250 3,273 3,242 3,211 159 50 100 309 308 -477 617 -532 Petroleum refining........................... 2,281 2,301 2,263 2,402 2,447 -91 31 117 57 -138 -234 -81 -116 Chemicals and rubber..................... 2,487 2,509 2,521 2,518 2,531 -20 -95 -49 -164 -40 -178 -204 -431 Other nondurable goods................. 1,923 1,918 1,928 1 ,920 1 ,913 44 — 57 62 49 66 -268 115 -415 Mining, including crude petroleum and natural gas............................. 6,707 6,787 6,677 6,619 6,606 97 124 85 306 448 789 754 1 ,065 Trade: Commodity dealers................. 1,770 1,657 1 ,746 1,747 1,694 103 124 -104 123 65 340 188 477 Other wholesale....................... 5,824 5,838 5,796 5,799 5,786 53 -21 16 48 337 -103 385 -181 Retail........................................ 6,275 6,245 6,223 6,114 6,133 159 128 63 350 133 -208 483 -517 Transportation..................................... 5,685 5,689 5,714 5,720 5,761 -109 -36 -7 -152 -231 127 -383 3 Communication................................... 1 ,762 1 ,733 1 ,737 1 ,793 1 ,787 46 63 -42 67 -289 -49 -222 -158 Other public utilities........................... 6,230 6,142 6,195 6,132 6,212 167 123 -173 117 -884 33 -767 -198 Construction........................................ 4,207 4,230 4,241 4,206 4,192 -28 -122 -67 -217 -701 -381 -918 -436 Services................................................. 10,569 10,610 10,655 10,641 10,667 -47 -147 -125 -319 69 285 -250 -15 All other domestic loans..................... 7,127 7,045 7,171 7,273 7,269 -116 -339 -234 -689 -2,587 628 -3,276 643 Bankers acceptances............................ 2,900 2,924 2,751 2,719 2,933 28 -245 -185 -402 -1,643 2,855 -2,045 2,685 Foreign commercial and industrial loans.............................................. 5,699 5,745 5,715 5,603 5,709 -14 63 280 329 82 222 411 757 Total classified loans........................... 93,231 92,989 93,059 92,807 93,189 592 -727 -720 -855 -5,944 1 ,863 -6,799 -422 Comm, paper included in total clas­ sified loans1................................... 409 53 -100 12 -35 7 153 -28 197 Total commercial and industrial loans of large commercial banks.......... 112,786 112,471 112,527 112,273 112,615 766 -550 -971 -755 -7,113 1 ,680 -7,868 -942 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 1976 June May Apr. Mar. Feb. Jan. Dec. Nov. Oct. 1st 30 26 28 31 25 28 31 26 29 II I IV III half Durable goods manufactur­ ing: 1,241 1,293 1 ,283 1,291 1,335 1 ,341 1,372 1 ,381 1 ,320 -50 -81 34 50 -131 Machinery.......................... 3,029 3,088 3,055 3,144 3,072 3,117 3,313 3,451 3,538 -115 -169 -424 -240 -284 Transportation equipment. 1,508 1 ,488 1 ,632 1,691 1,643 1,686 1,615 1 ,727 1 ,624 -183 76 -78 -47 -107 Other fabricated metal products.......................... 801 879 919 909 1,035 1,041 1,024 1,087 1 ,175 -108 -115 -244 46 -223 Other durable goods.......... 1,813 1,843 1,871 1,793 1 ,838 1,874 1 ,823 1,905 1 ,950 20 -30 -189 -78 -10 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,403 1 ,334 1 ,366 1,391 1,536 1,547 1 ,578 1 ,544 1,451 12 -187 107 -43 -175 Textiles, apparel, and leather............................. 1,117 1,075 1 ,044 993 1,055 1,032 995 1,072 1,074 124 -2 -108 8 122 Petroleum refining............. 1,706 1,781 1,785 1,685 1,886 1,859 1,831 1,860 1,914 21 -146 -136 258 -125 Chemicals and rubber....... 1,466 1,462 1,495 1,540 1,603 1,588 1,622 1,549 1,605 -74 -82 -43 -97 -156 Other nondurable goods. . 986 961 979 962 942 925 888 955 995 24 74 -168 -87 98 Mining, including crude pe­ troleum and natural gas. 5,195 5,117 5,015 4,904 4,731 4,528 4,484 3,867 3,896 291 420 637 113 711 Trade: Commodity dealers.. 207 206 180 190 182 196 172 168 162 17 18 22 2 35 Other wholesale........ 1,308 1,355 1,312 1,344 1,279 1,290 1,276 1,308 1,403 -36 68 -43 -10 32 Retail......................... 2,031 2,031 2,036 2,008 1,987 2,007 1,996 2,115 2,150 23 12 -157 17 35 Transportation....................... 4,237 4,246 4,252 4,250 4,329 4,291 4,390 4,324 4,420 -13 -140 -1 -34 -153 Communication..................... 991 1,008 984 998 1,095 1 ,101 1,081 1,112 1 ,122 -7 -83 -51 -1 -90 3,908 3,811 3,770 3,898 3,940 3,995 3,979 3,942 4,027 10 -81 13 -79 -71 Construction.......................... 1 ,744 1,755 1,876 1,915 2,141 2,258 2,181 2,207 2,267 -171 -266 -178 45 -437 Services................................... 5,098 5,266 5,317 5,368 5,147 5,038 5,135 5,082 5,097 -270 233 13 -18 -37 All other domestic loans .... 2,367 2,349 2,507 2,700 3,093 3,396 3,299 3,116 3,054 -333 -599 55 -14 -932 Foreign commercial and in­ dustrial loans.................. 3,156 3,121 3,085 2,984 3,001 2,999 2,921 2,851 2,834 172 63 158 169 235 45,312 45,469 45,763 45,958 46,870 47,109 46,975 46,623 47,078 -646 -1,017 -781 -40 -1,663 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 □ JULY 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 in in a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec.................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Dec................................................................................. 18.5 98.4 58.6 1.3 10.7 187.5 1972—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 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—May................................................................................ 14.2 63.1 29.2 2.3 6.2 115.0 June................................................................................ 15.1 65.1 29.5 2.2 6.2 118.1 July................................................................................. 15.0 65.3 29.8 2.2 6.5 118.7 Aug................................................................................ 14.4 64.6 29.1 2.0 5.9 116.1 Sent................................................................................. 14.7 65.5 29.6 2.1 6.2 118.1 Oct.................................................................................. 15.1 66.7 29.0 2.2 6.3 119.3 15.4 68.1 29.4 2.2 6.4 121.6 Dec................................................................................. 15.6 69.9 29.9 2.3 6.6 124.4 1976—Jan.................................................................................. 15.2 68.0 30.3 2.2 6.7 122.4 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 May*7.............................................................................. 15.7 67.8 26.4 2.2 6.1 118.2 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............................... 352 275 260 223 152 112 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-14; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-l 8-A-22 City and the City of Chicago) and “Country” categories, respectively (consumer instalment loans); and from the figures in the table at the (hence the series are continuous over time). bottom of p. A-l 3. But they are included in the figures for “Time de­ posits” and “Loans” for call dates as shown on pp. A-14-A-17. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 Bytype of loaii Date Total Commercial Real All and estate other industrial 1976—Mar. 3......................... 4,482 2,731 201 1,550 10......................... 4,390 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 14......................... 4,082 2,480 197 1 ,405 21......................... 4,121 2,531 194 1 ,396 28......................... 4,176 2,560 200 1 ,416 May 5......................... 4,174 2,567 195 1 ,412 1 To bank’s own foreign branches, nonconsolidated non­ 12......................... 4,346 2,727 193 1 ,426 bank affiliates of the bank, the bank’s holding company (if 19......................... 4,307 2,704 192 1 ,411 not a bank), and nonconsolidated nonbank subsidiaries of 26 »■....................... 4,356 2,707 205 1,444 the holding company. June 2......................... 4,432 2,757 204 1,471 Note.—Series changed on Aug. 28,1974. For a comparison 9......................... 4,424 2,767 205 1,452 of the old and new data for that date, see p. 741 of the Oct. 16......................... 4,478 2,839 205 1,434 1974 Bulletin. Revised figures received since Oct. 1974 23......................... 4,442 2,810 205 1,427 that affect that comparison are shown in note 2 to this table 30......................... 4,482 2,834 205 1,443 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 comoanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di- Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed 3 placed Total Own Bills Own eign United United bills bought acct. corr.6 States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970........... 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971........... 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 ........... 34,721 5,655 22,098 6,968 1,226 1,411 6,89819722,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973........... 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974........... 49,144 4,611 31,839 12,694 1,814 6,518 18,484 4,226 3,685 542 999 1,109 12,150 4,023 4,067 10,394 1975-Apr. . 51,623 5,461 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 5,889 32,821 12,607 1,543 7,096 18,108 4,450 3,892 558 865 234 12,559 3,665 4,186 10,257 June.. 48,765 5,604 31,115 12,045 1,561 7,230 17,740 4,774 4,224 550 682 319 11,965 3,466 4,080 10,193 July.. 49,352 6,018 31,263 12,072 1,649 7,038 16,930 4,778 4,275 503 685 329 11,138 3,474 3,865 9,591 Aug.. 49,810 5,645 32,172 11,993 1,511 7,392 16,456 4,546 3.988 558 840 304 10,766 3,305 3,806 9,344 Sept.. 48,257 5,574 30,496 12,187 1,482 7,316 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 9,693 Oct... 50,394 6,360 32,308 11,726 1,634 7,114 17,304 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 I ,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 3,911 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 Apr... 49,572 6,246 31,143 12,183 1,658 6,304 19,558 6,126 5,305 821 995 344 12,094 4,258 4,257 11,043 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 iii 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 □ JULY 1976 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Effective date Rate Effective date Rate Monthly average rate 1974—Apr. 11 10 1975—Jan. 9 101/4 1975—July 18 , 71/4 1975-—Jan. 10.05 2 1 5 9 1 1 0 0 V % 4 2 15 0 1 9 0 3/4 28 7% F M e a b r . . 7 8 . . 9 9 3 6 May 2 io% 28 91/2 Aug. 12 73/4 A M p a r y . 7 7 . . 5 4 0 0 6 n Feb. 3 91/4 Sept. 15 8 June 7.07 1 1 7 0 1 m 11 / / 2 4 1 18 0 , , 9 sy4 Oct. 27 m J A u u ly g. 7 7. .6 15 6 June 26 1134 24, 8Vi Nov. 5 71/2 S O e c p t. t. 7 7 . . 8 9 8 6 Mar. 5, 81/4 Nov. 7.53 July 5 12 10, 8 Dec. 2 71/4 Dec. 7.26 18, 73/4 Oct. 21 7 1in1% /2 24, 7% 1976—Jan. 2 1 1 2, e 7 y4 1976-— F Ja e n b . . 6 7 . . 7 0 5 0 28 111/4 May 20, 71/4 Mar. 6.75 June 1 1 April 6.75 Nov. 1 4 4 1 11 03/4 June 9, 7 7 , m J M un ay e 7 6. . 7 2 5 0 25 101/2 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 May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 1976 Short-term 1 35 centers..................................... 7.44 7.54 8.91 9.03 8.38 8.44 7.78 7.80 7.52 7.55 7.18 7.33 New York City........................ 6.99 7.14 8.84 8.64 8.29 8.20 7.65 7.52 7.29 7.40 6.83 7.03 7 Other Northeast................... 7.79 7.93 9.24 9.46 8.58 8.69 7.99 8.06 7.95 7.77 7.45 7.71 8 North Central....................... 7.44 7.50 8.39 8.51 8.21 8.21 7.62 7.63 7.46 7.50 7.29 7.37 7 Southeast............................... 7.66 7.86 9.20 9.44 8.65 8.78 7.84 8.16 7.20 7.62 7.25 7.29 8 Southwest.............................. 7.51 7.56 8.75 8.76 8.13 8.16 7.71 7.57 7.48 7.44 7.11 7.35 4 West Coast............................ 7.75 7.77 9.14 9.17 8.51 8.60 8.00 8.06 7.71 7.70 7.61 7.61 Revolving credit 35 centers................ 7.36 7.50 9.23 9.50 8.12 8.40 7.59 7.79 7.35 7.74 7.32 7.42 New York City... 7.42 7.51 8.56 7.73 8.31 7.49 7.68 7.29 7.46 7.43 7.50 7 Other Northeast 7.78 8.06 8.92 10.66 7.84 7.57 7.44 7.47 7.58 7.80 7.83 8.16 8 North Central. . 7.48 7.64 9.19 9.88 8.69 9.23 7.99 8.34 7.74 7.46 7.34 7.53 7 Southeast.......... 8.01 7.49 9.85 9.59 8.95 9.02 8.35 8.09 8.15 8.43 7.69 6.75 8 Southwest......... 7.50 7.73 8.93 8.81 8.23 8.14 7.67 7.89 7.23 8.02 7.48 7.49 4 West Coast.... 7.15 7.32 8.61 8.69 7.84 8.15 7.39 7.59 7.14 7.87 7.12 7.20 Long-term 35 centers..................................... 8.02 8.02 9.21 9.44 8.80 8.96 8.16 8.40 8.33 8.26 7.92 7.89 New York City........................ 7.85 7.68 7.68 7.43 8.45 8.08 8.45 8.01 8.51 7.25 7.76 7.68 7 Other Northeast................... 7.35 8.16 9.10 9.36 9.19 9.32 8.52 8.38 8.10 8.10 6.64 7.98 8 North Central....................... 8.59 7.96 8.38 9.23 8.28 8.56 7.94 8.35 9.08 7.90 8.65 7.86 7 Southeast............................... 8.03 8.90 9.49 9.69 8.90 9.69 7.70 9.20 7.75 7.97 8.01 8.57 8 Southwest.............................. 7.89 8.14 10.53 10.65 8.92 8.69 8.40 8.10 7.64 8.79 7.74 7.84 4 West Coast............................ 8.23 8.46 9.43 8.63 8.97 9.33 7.73 8.85 8.29 9.12 8.26 8.28 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 o INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities 5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills6 6-month bills 6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1-year issues7 days months months2 on new yield on new yield bill (mar­ Other7 issue issue ket yield) 6 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.21 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.66 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1973. 8.20 8.15 7.40 8.08 8.74 7.041 7.03 7.178 7.20 7.01 7.30 6.92 1974. 10.05 9.87 8.62 9.92 10.51 7.886 7.84 7.926 7.95 7.71 8.25 7.81 1975. 6.26 6.33 6.16 6.30 5.82 5.838 5.80 6.122 6.11 6.30 6.70 7.55 1975—June. 5.67 5.79 5.53 5.70 5.55 5.193 5.34 5.463 5.61 5.86 6.26 7.26 July.. 6.32 6.44 6.02 6.40 6.10 6.164 6.13 6.492 6.50 6.64 7.07 7.72 Aug.. 6.59 6.70 6.39 6.74 6.14 6.463 6.44 6.940 6.94 7.16 7.55 8.12 Sept.. 6.79 6.86 6.53 6.83 6.24 6.383 6.42 6.870 6.92 7.20 7.54 8.22 Oct.. 6.35 6.48 6.43 6.28 5.82 6.081 5.96 6.385 6.25 6.48 6.89 7.80 Nov.. 5.78 5.91 5.79 5.79 5.22 5.468 5.48 5.751 5.80 6.07 6.40 7.51 Dec.. 5.88 5.97 5.86 5.72 5.20 5.504 5.44 5.933 5.85 6.16 6.51 7.50 1976—Jan... 5.15 5.27 5.16 5.08 4.87 4.961 4.87 5.238 5.14 5.44 5.71 7.18 Feb.. 5.13 5.23 5.09 4.99 4.77 4.852 4.88 5.144 5.20 5.53 5.78 7.18 Mar.. 5.25 5.37 5.27 5.18 4.84 5.047 5.00 5.488 5.44 5.82 6.12 7.25 Apr.. 5.08 5.23 5.13 5.03 4.82 4.878 4.86 5.201 5.18 5.54 5.85 6.99 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 June. 5.83 5.94 5.78 5.77 5.48 5.443 5.41 5.784 5.77 6.12 6.52 7.40 Week ending— 1976—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 June 5., 5.88 6.00 5.75 5.92 5.54 5.578 5.53 5.952 5.90 6.27 6.66 7.52 12.. 5.88 6.00 5.88 5.82 5.44 5.459 5.44 5.768 5.75 6.11 6.55 7.42 19., 5.90 6.00 5.88 5.74 5.47 5.380 5.38 5.695 5.74 6.07 6.50 7.38 26., 5.78 5.90 5.75 5.69 5.48 5.356 5.34 5.722 5.71 6.06 6.44 7.32 July 3., 5.70 5.80 5.50 5.69 5.58 5.368 5.36 5.754 5.75 6.08 6.46 7.36 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 □ JULY 1976 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local i utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United States (long­ Re­ Aaa Baa Indus­ Rail­ Public term) Aaa Baa New cently trial road utility Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 197 4 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11 .60 197 5 6.98 7.05 6.42 7.62 9.40 9.41 9.46 8.83 10.39 9.25 9.39 9.88 8.38 4.31 9.03 1975—Jun e 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 's.ei 1976—Ja...........n 6.94 7.08 6.22 7.81 8.70 8.79 9.33 8.60 10.24 9.16 9.32 9.68 8.16 3.80 8.22 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 June.... 6.92 6.83 5.85 7.75 8.72 8.73 9.05 8.62 9.72 8.96 9.36 8.10 3.75 Week ending— 1976—May 1. 6.80 6.57 5.63 7.47 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 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 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 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 9.09 8.65 9.77 9.04 8.93 9.37 8.03 3.83 June 5. 6.98 6.88 5.90 7.79 9.08 8.63 9.76 9.03 8.93 9.37 8.13 3.79 12. 6.92 6.83 5.85 7.74 9.06 8.63 9.75 8.97 8.91 9.38 8.14 3.86 19. 6.91 6.81 5.83 7.73 9.04 8.62 9.71 8.94 9.36 8.04 3.74 26. 6.91 6.79 5.81 7.72 9.02 8.60 9.68 8.93 9.36 8.10 3.70 July 3.. 6.90 6.79 5.81 7.72 8.72 9.03 8.63 9.70 8.95 8.82 9.35 8.09 3.67 Number of issues2.. . 15 121 30 41 30 40 14 500 500 J Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, ba‘>ed on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors Service. (3) Corporate, rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System; and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings/price ratios as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of nondata. callable issues—12 industrial and 2 public utility. Common stock ratios Bonds: Monthly and weekly yields are computed as follows: (1) U.S. on the 500 stocks in the price index. Quarterly earnings are seasonally Govt., averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more; from Federal Reserve Bank of New York. (2) State and local NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Stock Market Customer Financing: 1 Standard and Poor’s indexes appearing for week ending July 3, 1976, 1 Margin credit includes all credit extended to purchase or carry stocks actually represent averages for the 3 days ending June 30, 1976. Beginning or related equity instruments and secured at least in part by stock (Dec. July 1, 1976 changes were made in composition of the Standard and Poor’s 1970 Bulletin, p. 920). Credit extended by brokers is end-of-month data index. Figures showing the effects of these changes and of the addition of for member firms of the New York Stock Exchange. June data for banks a new subgroup for financial corporations will appear in the Aug. 1976 are universe totals; all other data for banks represent estimates for all Bulletin. commercial banks based on reports by a reporting sample, which ac­ counted for 60 per cent of security credit outstanding at banks on June 30, Note.—Annual data are averages of daily or weekly figures. Monthly 1971. and weekly data are averages of daily figures unless otherwise noted and are 2 In addition to assigning a current loan value to margin stock generally, computed as follows: U.S. Govt, bonds, derived from average market Regulations T and U permit special loan values for convertible bonds and yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year stock acquired through exercise of subscription rights. bond. Municipal and corporate bonds, derived from average yields as 3 Nonmargin stocks are those not listed on a national securities exchange computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- and not included on the Federal Reserve System’s list of over the counter year bond; Wed. closing prices. Common stocks, derived from com­ margin stocks. At banks, loans to purchase or carry nonmargin stocks are ponent common stock prices. Average daily volume of trading, presently unregulated; at brokers, such stocks have no loan value. conducted 5 days per week for 6 hours per day. 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

JULY 1976 □ SECURITY MARKETS A29 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange Amer­ trading in (per cent of par) ican stocks Stock (thousands of Period Standard and Poor’s index New York Stock Exchange index Ex­ shares) (1941-43= 10) (Dec. 31, 1965=50) change total index ( G t l U e o o r . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e 1 ( 9 A 1 3 7 0 1 u 3 0 , g ) = . NYSE AMEX 197 0 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 3,376 197 1 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 4,234 197 2 . 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 4,447 197 3 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 3,004 197 4 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—June. ... 58.33 69.8 56.7 92.40 103.68 38.97 43.65 49.22 54.61 32.38 32.79 52.20 90.57 21,286 2,743 July___ 58.09 68.5 56.6 92.49 103.84 38.04 43.67 49.54 54.96 32.90 32.98 52.51 93.28 20,076 2,750 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 51.89 31.61 32.75 43.86 82.50 15,859 1,977 1976—Ja..........n 57.75 69.7 57.0 96.86 108.45 41 .42 46.99 51 .31 57.00 35.78 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 60.30 39.17 35.43 52.61 104.04 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 May 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 June 57.86 69.3 56.8 101.78 114.50 46.50 45.61 54.23 60.70 40.41 35.16 51.82 103.57 18,965 2,177 Week ending— 1976—June 5 57.46 69.1 56.2 99.84 112.23 46. 15 45.15 53.14 59.45 39.64 34.75 50.03 102.79 16,215 1,923 12 57.91 69.1 56.7 99.33 111.61 45.85 45.18 52.91 59. 13 39.48 34.69 50.28 101.75 16,260 2,083 19 57.93 69.3 57.3 102.56 115.46 46.31 45.69 54.62 61.20 40.47 35.22 52.36 103.82 22,968 2,370 26 57.99 69.3 57.2 103.70 116.78 47.02 45.98 55.28 61.94 41.15 35.53 53.20 104.82 19,058 2,130 July 3___ 58.02 69.6 56.6 103.85 116.84 47.50 46.37 55.46 62.03 41.64 35.88 53.65 105.06 19,760 2,306 F or 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. 975—May...................................... 5,666 4,847 819 4,700 779 140 27 7 13 1 ,883 520 1 ,705 June...................................... 5,984 5,140 844 4,990 805 146 28 4 11 2,434 520 1,790 July....................................... 6,266 5,446 820 5,300 780 143 29 3 10 2,387 555 1,710 Aug....................................... 6,197 5,365 832 5,220 791 142 30 3 11 2,457 515 1,500 Sept....................................... 6,251 5,399 852 5,250 811 145 30 4 10 2,520 470 1,455 Oct.. .................................... 6,455 5,448 1,007 5,300 956 144 36 4 15 2,311 545 1,495 Nov....................................... 6,527 5,519 1,008 5,370 958 146 37 3 13 2,270 490 1,470 Dec....................................... 6,500 5,540 960 5,390 909 147 36 3 15 2,281 475 1,525 976—Jan......................................... 6,568 5,568 1,000 5,420 946 146 34 2 20 2,321 655 1,975 Feb........................................ 7,152 6,115 1,037 5,950 984 162 34 3 20 2,333 685 2,065 Mar....................................... 7,617 6,575 1,042 6,410 988 162 34 3 20 2,355 595 1,935 Apr........................................ 7,932 6,856 1,076 6,690 1,023 163 32 3 21 2,325 570 1,740 May...................................... 8,110 7,103 1,007 6,940 957 161 31 2 19 2,357 540 1,655 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ JULY 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 p n er d i o o d f l d io o o n f l ­ s m 80 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 do il l l l i a o r n s s ) lars) 1 1975—May....................... 44.5 43.2 12.3 7,601 1975—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 m.6 19.6 31.0 26.5 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 Nov........................ 45.3 40.2 14.5 7,425 Nov.. 5,370 5.2 6.7 12.2 23.2 28.6 24.0 43.8 40.8 15.4 7,290 Dec.. 5,390 5.3 6.9 11.6 22.3 28.8 25.0 1976—Jan.......................... 45.8 44.0 10.3 '7,770 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 May....................... 41.4 46.2 12.4 8,030 May. 6,940 5.8 7.2 12.4 23.8 34.2 16.6 Note.—Special miscellaneous accounts contain credit balances that 1 Note 1 appears at the bottom of p. A-28. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 2 End of period M ga o g r e t­ Other G U o .S vt . . g S l a o o t n c a v d a t t e l . o C r a t o a h n r t e d e p r o 1 ­ Cash O as t s h e e ts r l g r i e T e a a t s n o b i e n e e i t r d s l a r v i a l ­ e l De it p s os­ l O ia ti t b e h i s e li r ­ G r c e o e s a u n e c n e r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity 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—Apr.... 75,259 4,407 3,419 1,121 24,994 1,841 2,780 113,821 102,902 2,849 8,071 913 335 312 538 2,098 May... 75,440 4,593 3,616 1,137 25,579 2,077 2,811 115,252 104,056 3,080 8,116 955 383 300 573 2,211 June... 75,763 4,492 3,744 1,240 26,470 2,088 2,954 116,751 105,993 2,594 8,164 973 510 195 565 2,243 July... 76,097 4,396 3,965 1 ,436 26,976 1 ,835 3,004 117,709 106,533 2,970 8,208 957 463 266 526 2,212 Aug.... 76,310 4,405 4,187 1,451 27,104 1,730 3,067 118,254 106,745 3,255 8,254 981 431 237 573 2,222 Sept.. . 76,429 4,487 4,279 1,495 27,033 1,783 3,136 118,643 107,560 2,778 8,304 1,011 372 256 499 2,138 Oct.. .. 76,655 4,481 4,368 1,523 27,106 1,805 3,152 119,089 107,812 2,950 8,328 950 368 275 394 1,987 Nov.. . 76,855 4,550 4,601 1,551 27,421 1,872 3,223 120,073 108,480 3,215 8,378 972 323 222 379 1,896 Dec.'.. 77,221 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.. . 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 Apr. p . 78,046 5,027 5,533 2,149 30,707 1,647 3,361 126,470 114,752 3,106 8,612 1,175 398 281 436 2,290 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

JULY 1976 o SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o se ta ts l United State and M ga o ge rt s ­ e R st e a a t l e P lo o a li n c s y O as t s h e e ts r Total States local Foreign1 Total Bonds Stocks 1971. 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 1972. 239,730 11,372 4,562 3,367 3,443 112,985 86,140 26,845 76,948 7,295 18,003 13,127 1973 252,436 11,403 4,328 3,412 3,663 117,715 91,796 25,919 81,369 7,693 20,199 14,057 1974 r 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—-Apr...................................... 273,523 12,374 4,608 3,719 4,047 126,256 99,725 26,531 87,638 8,782 23,459 15,014 May.................................... 275,816 12,464 4,678 3,739 4,047 127,847 100,478 27,369 87,882 8,843 23,570 15,210 June.................................... 278,343 12,560 4,738 3,762 4,060 129,838 101,238 28,600 88,035 8,989 23,675 15,246 July..................................... 279,354 12,814 4,843 3,902 4,069 130,298 102,675 27,623 88.162 9,058 23,794 15,228 Aug..................................... 280,482 13,022 4,895 4,039 4,088 130,659 103,496 27,163 88,327 9,112 23,919 15,443 Sept..................................... 281,847 13,150 4,914 4,122 4,114 131,524 104,529 26,995 88,445 9,210 24,048 15,470 284,829 13,793 5,505 4,148 4,140 133,237 105,473 27,764 88,655 9,356 24,171 15,617 Nov..................................... 286,975 14,129 5,762 4,210 4,157 134,495 106,385 28,110 88,850 9,464 24,271 15,766 Dec...................................... 289,084 14,582 5,894 4,440 4,248 135,014 106,755 28,259 89,358 9,634 24,389 16,107 1976—Jan....................................... 293,870 15,380 6,446 4,652 4,282 138,965 108,130 30,835 89,395 9,661 24,498 15,971 Feb...................................... 296,479 16,142 6,458 4,790 4,894 140,332 109,321 31,011 89,543 9,726 24,633 16,103 Mar..................................... 299,552 15,723 4,967 5,220 5,536 143,105 111,385 31,720 89,781 9,812 24,755 16,376 Apr.?5.................................. 299,983 15,917 5,198 5,100 5,619 143,197 111 ,757 31,440 89,489 9,852 24,873 16,655 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ End of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other l a ia s T b s o e il t t i a s t — i l e s S c a a v p i i n ta g l s w N or e t t h2 m ro B o w n o e e r­ d y3 p L ro o i c n a e n s s s Other ou m a p t t s i e t e t m r a n i n o d e d d n i o t 4 n s f g 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—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 r18,863 4,446 6,724 12,363 July......................... 264,458 32,054 26,311 322,823 272,032 19,266 '18,744 4,771 8,010 12,611 Aug......................... 267,717 31,694 27,127 326,538 273,504 19,495 r19,216 4,995 9,328 12,673 Sept......................... 270,600 30,786 27,745 329,131 277,201 19,414 r20,031 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 r20,413 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 20,211 18,220 5,379 7,494 14,445 Apr.......................... 290,727 36,437 30,663 357,827 305,234 20,475 17,759 5,787 8,572 15,512 MayP....................... 294,755 36,998 31,267 363,020 308,276 20,691 17,677 6,151 10,225 16,631 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 □ JULY 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 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 1 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—May'... . 13,010 28,826 -15,816 11 ,41 -6 3,296 -440 8,556 -6,788 235 707 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 I ,483 -32 50 4 1 ,398 3,517 545 1,792 May........ 22,679 28,410 -5,731 8,699 -9 5,130 -549 4,109 -3,383 502 -1,259 Selected balances Treasury operating balance Borrowing from the public. Memo: End Debt of pe o ri f od B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h e o 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 G In o v v e t s L , t m e a s c e s c : n o t u s n o ts f S n L p o e e t c s e s i s a : 1 l E T q o u t a a l l s: s c p p o G o r N r i n o p v o s v s a o w t . t . — r e - e 4 d Special issues Other Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,634 139 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—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 6,485 566,799 10,928 116,434 23,255 438,037 78,451 Dec....... 7,286 1,159 8,452 576,649 10,904 118,294 23,006 446,253 78,842 1976—Ja n '10,077 '1 ,899 '11 ,982 584.405 10.902 117.901 23.333 454,072 79,355 Feb....... '10,350 '1,682 '12,039 584.405 10.902 117.901 23.333 463,045 78,359 Mar.. .. '7,145 '864 '8,016 600,490 10,901 118,340 22,686 470,365 78,712 Apr....... '9,808 1 ,723 '11 ,537 601,973 10,870 118,390 22,690 471,763 80,039 May__ 6,746 1,407 8,159 610,672 10,861 123,520 22,140 475,872 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

JULY 1976 □ FEDERAL FINANCE A33 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total Pres. taxes and Excise Cus­ Estate Misc. Elec­ Non­ Gross contribution2 Un- Other taxes toms and re­ With­ tion with­ Re­ Net re­ Re­ empl. net Net gift ceipts4 held Cam­ held funds total ceipts funds insur. re­ total paign Pay­ Self- ceipts3 Fundi roll empl. taxes Fiscal year: 197 2 208,649 83,200 25,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 197 3 232,225 98,093 27,01721,866 103,24639,045 2,893 52,505 2,371 6,051 3,61464,542 16,260 3,188 4,917 3,921 197 4 264,932 112,092 30,81223,952 118,95241,744 3,125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 197 5 280,997 122,071 34,29634,013 122,38645,747 5,125 71,789 3,417 6,770 4,46686,441 16,551 3,676 4,611 6,711 Half year: 1974—Jan.-June.. 140,676 59,100 2824,60522,953 60,78225,155 1,631 32,919 2,807 3,862 2,08441,671 7,878 1,701 2,521 2,601 July-Dee... 139,607 61,378 7,098 1,01667,461 18,247 2,016 34,418 254 2,914 2,187 39,774 8,761 1,958 2,284 3,140 1975—Jan.-June.. 141,190 60,694 27,198 32,99754,92627,500 3,109 37,371 3,163 3,856 2,279 46,667 7,790 1,718 2,327 3,370 July-Dee... 139,453 59,549 7,649 1,36265,835 18,810 2,735 35,443 268 2,861 2,31440,886 8,759 1,927 2,573 3,397 Month: 1975—Ma y rl 3,010 10,300 819 12,749 -1,( 1 ,192 18 7,689 340 2,209 350 10,588 1 ,373 270 459 r776 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 12410,354 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—Ja.................n 25,634 9,518 5,843 86 15,276 1,771 218 5,540 225 223 442 6,430 1,335 348 401 292 Feb.............. 20,845 10,938 933 4,100 7,778 1 ,203 422 8,330 237 693 370 9,631 1 ,354 288 475 538 Mar............. 20,431 11,377 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 12,723 7,512 15,248 6,727 607 6,179 1 ,832 952 386 9,349 1,353 357 387 535 May............ 22,679 10,749 573 5,171 6,157 1,396 380 9,132 359 2,940 380 12,811 1,329 349 489 528 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--May r.... 28,826 7,989 407 360 22 702 1,004 402 1,608 12,421 1,441 2,607 666 71 -876 June......... 30,296 7,854 557 256 179 788 1,289 453 1,684 14,158 1,412 2,521 759 -14 -1,601 July.......... 31,249 7,307 531 476 270 821 2,256 402 1,237 13,092 1,367 2,637 321 1,625 -1,094 Aug.......... 30,634 8,229 448 402 117 770 2,165 568 1 ,690 12,431 1 ,447 2,672 553 213 -1,071 Sept.......... 29,044 6,923 47 398 507 844 1,899 440 1,571 12,738 1,334 2,859 548 4 -1,068 Oct........... 32,425 8,192 362 398 312 740 1 ,965 462 896 13,575 1,518 2,957 492 1 ,592 -1,035 Nov.......... 29,401 7,533 419 405 196 786 1,203 315 1,653 12,612 1,624 2,996 531 15 -887 Dec........... 31,792 7,981 290 409 175 814 1,994 433 1,515 13,721 1,704 2,820 1,154 1 -1,221 1976--Jan............ 30,725 6,915 351 336 228 718 1,819 421 1,478 13,714 1,626 2,813 121 1,627 -1,441 Feb........... 29,833 6,120 320 413 315 1,833 900 421 1 ,530 13,360 1,696 3,143 570 53 -841 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 May......... 28,410 7,136 292 348 270 924 466 448 1,258 13,229 1,555 3,220 617 96 -1,449 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 □ JULY 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) Total End of period p g u r b o l s i s c Con­ Nonmarketable Special debt 1 Total vert­ Savings C c e a r t t e if s i­ Bonds 2 bo ib n le ds Total 3 Foreign bo a n nd ds 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—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 June 620.4 489.5 392.6 161 .2 191 .8 39.6 2.3 94.6 21 .5 70.1 129.8 1 Includes non-interest-bearing debt (of which $61 3 million on June 30, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1976, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern­ Note.—Based on Monthly Statement of the Public Debt of the United ment bonds, and Treasury deposit funds. States, published by U.S. Treasury. See also second paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s 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 n t o e e d i n r g ­ a n l1 t O i m o n r t v i h s s e c e s . 2 r ­ funds bonds securities 1968—Dec................. 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec................. 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec................. 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................. 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................. 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Dec................. 492.7 141.2 80.5 271.0 55.6 2.5 6.1 11.0 29.2 63.4 21 .5 58.4 23.2 1975—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 Apr.p............. 602.0 139.1 91 .8 371 .0 92.2 ;.i 10.2 23.8 37.7 68.8 24.4 70.2 38.6 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

JULY 1976 □ 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 Apr. 30............................................................. 386,444 203,983 161,764 42,219 124,967 32,381 14,067 11,045 May 31............................................................. 388,021 205,431 161,840 43,591 121,112 35,573 14,025 11,881 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—Apr. 30.................................................... 19,110 3,110 526 2,584 6,661 3,039 4,233 2,068 May 31..................................................... 18,562 2,528 442 2,086 ,6,582 3,039 4,298 2,115 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 Apr. 30.................................................... 91,814 47,433 38,793 8,640 32,108 7,745 1,592 2,935 May 31..................................................... 90,530 49,439 38,722 10,717 28,287 8,198 1 ,556 3,050 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 Apr. 30.................................................... 275,520 153,440 122,445 30,995 86,198 21,597 8,242 6,042 May 31..................................................... 278,929 153,464 122,626 30,838 86,243 24,336 8,171 6,716 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—Apr. 30............................................ 69,329 28,757 16,584 12,173 35,538 4,304 507 223 May 31............................................ 68,962 28,163 16,601 11,562 35,359 4,647 509 283 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—Apr. 30............................................ 3,903 1,046 487 559 2,015 550 214 78 May 31............................................ 4,001 1 ,000 477 523 2,119 540 213 129 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—Apr. 30............................................ 8,498 1,840 1,337 503 3.123 1,928 1,152 455 May 31............................................ 8,551 1 ,582 1 ,095 487 3,393 1 ,955 1 ,133 488 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—Apr. 30............................................ 11,933 9,507 8,235 1,272 2,239 82 55 51 May 31............................................ 13,610 11,068 9,411 1 ,657 2,327 127 57 33 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—Apr. 30............................................ 4,414 1,918 1,386 532 2,219 173 85 20 May 31............................................ 4,388 1 ,895 1,362 533 2,211 178 83 21 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—Apr. 30............................................ 11,294 6,877 5,891 986 2,147 836 815 619 May 31............................................ 14,868 10,425 9,616 809 2,111 879 804 649 AH 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—Apr. 30............................................ 166,148 103,495 88,525 14,970 38,917 13,725 5,415 4,595 May 31............................................ 164,550 99,332 84,115 15,217 38,723 16,009 5,373 5,114 Note.—Direct public issues only. Based on Treasury Survey of banks, and 729 insurance companies combined, each about 90 per cent; Ownership. (2) 453 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) 5,521 commercial banks, 470 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 U.S. GOVERNMENT SECURITIES □ JULY 1976 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1975—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 r2,935 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 May............................... 8,557 6,002 1,593 700 263 952 2,907 2,128 2,571 1,150 Week ending— 1976—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 2,762 986 19......................... 7,889 5,648 1,204 744 294 827 2,697 2,015 2,351 1,523 26......................... 8,272 5,645 1,875 556 197 909 2,977 1,968 2,418 1,103 June 2......................... 8,274 6,754 1,058 329 133 983 2,703 1,968 2,621 1,017 9......................... 9,588 6,822 2,134 463 170 1,280 3,192 2,209 2,908 1,071 16......................... 8,197 5,988 1,694 394 122 1,414 2,306 2,088 2,389 1,227 23......................... 7,595 5,582 1,607 321 84 1,285 2,054 1,732 2,519 1,266 30......................... 8,862 6,836 1,327 591 107 1,322 2,603 1,816 3,120 986 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, ill millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercnal banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1975—May................. 6,332 4,917 1,094 248 73 896 1975—May........... 6,656 1,684 1,567 452 2,953 June................. 6,768 5,923 748 100 -3 790 June........... 7,682 1,955 1,979 737 3,012 July................. 5,736 4,978 775 47 -64 626 July............ 6,594 1,365 1,435 929 2,865 Aug.................. 5,501 4,491 609 262 138 610 Aug............ 6,167 1,009 1,148 1,120 2,890 Sept................. 5,718 5,214 410 56 39 529 Sept............ 6,576 1,160 1,640 972 2,804 Oct................... 7,322 6,019 1,091 111 102 491 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—Jan.............. 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 Mar............ 7,175 1 ,865 1,138 1,225 2,947 Apr.................. 6,733 6,328 190 131 84 508 Apr............ 7,587 1 ,966 1 ,734 1,126 2,761 May................. 5,272 4,852 232 126 62 185 May........... 6,089 1,346 1,026 975 2,742 Week ending— Week ending— 1976—Apr. 7 7,762 7,328 194 136 104 572 1976—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 May 5......... 5,180 4,785 251 114 30 403 May 5... 5,448 1,013 863 739 2,833 12... . 5.984 5,181 419 227 156 281 12... 6,721 1,717 1,312 787 2,905 19 4,905 4,550 115 165 74 205 19... 6,511 1,464 1,121 971 2,956 26. . . . 4,624 4,352 234 29 9 29 26... 5,561 1,277 905 1,051 2,328 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

JULY 1976 □ 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-—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 May., 15,215 5,585 97 17,114 2,891 2,836 32,113 29,805 4,470 3,761 10,823 10,034 17,731 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 ^re gross of valuation sheet items are capital accounts of all agencies, except for stock of FHLB’s. reserves and represent cost for FNMA and unpaid principal for other Bonds, debentures, and notes are valued at par. They include only publicly agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ G l U o o a .S v n t . s . State 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 ti t e i s l­ 4 H in o g u s s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 197 1 24,963 15,220 8,681 1,000 5,999 8,714 10,246 24.495 5,278 2,642 5,214 2,068 9,293 197 2 23,653 13,305 9,332 959 4,991 9,496 9,165 19,959 4,981 1,689 4,638 1,910 6,741 197 3 23,969 12,257 10,632 1,022 4,212 9,505 10,249 22,397 4,311 1,458 5,654 2,639 8,335 197 4 24,315 13,563 10,212 461 4,784 8,638 10,817 23,508 4,730 768 5,634 1,064 11,312 197 5 30,607 16,020 14,511 7,438 12,441 10,660 29.495 4,689 1,277 7,209 647 15,673 1975—May... 2,905 1,885 1,015 811 1,197 2,784 419 211 559 25 1,570 June. .. 3,066 1,772 1,292 938 1,137 989 2,840 430 164 821 28 1,397 July... 3,586 1,371 2.209 1,577 1,063 941 3,554 400 123 879 37 2,115 Aug. . . 2,786 1,058 1,725 376 1,665 747 2,561 379 55 626 67 1,434 Sept. .. 2,171 907 1,252 357 1,185 614 2,123 279 134 447 48 1,215 Oct.. .. 2,337 1,120 1,203 482 979 855 2,241 212 60 487 44 1 ,438 Nov.. . 2,385 1,040 1,341 470 1,244 667 2,318 219 88 618 28 1,365 Dec__ 2,062 995 1,057 434 1,043 576 1,990 287 29 495 20 1,159 1976—Jan.. .. 2,355 1,135 1.209 639 1,070 637 2,270 432 95 600 1,055 Feb.... 2,694 1 ,304 1,375 446 1,449 782 2,594 335 135 572 130 1,422 Mar.. . 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 Mayp.. 3,308 1,839 1,456 824 1 ,307 1,167 3,138 688 384 878 66 1,122 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 □ JULY 1976 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 al Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1972. 84,792 17,080 12,825 23,070 1 ,589 40,228 26,132 17,425 8,706 3,370 10,725 1973. 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 ' 53,638 42,761 32,603 10,157 3,458 7,420 1975—Feb.'. 4,528 3,906 3,201 705 173 449 Mar.r 5,378 4,481 3,971 510 253 644 Apr.r, 4,294 3,194 2,771 423 349 751 Mayr, 5,798 4,298 3.796 502 346 1 ,154 June', 5,615 4,613 3; 943 670 230 772 July'. 4,327 3,673 2,658 1 ,014 198 456 Aug. r 2,398 1 ,835 1 ,356 479 129 434 Sept.r 2,834 1 ,997 1 ,414 583 308 529 Oct.'. 4,707 3,160 2,389 771 332 1 ,215 Nov.' 4,070 3,283 1 ,666 1 ,617 444 343 Dec.'. 4,305 3,508 1 ,761 1 ,748 462 335 1976—Jan.'. 3,297 2,727 2,189 538 139 431 Feb... 3,764 2,837 2,142 695 173 754 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds 197 2 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 2,745 197 4 9,867 544 1 ,845 940 1 ,550 22 8,873 3,964 3.710 217 6,218 562 1975 r.......... 17,025 1 ,670 2,753 1,485 3,450 1 9,652 6,235 3,464 1 ,002 6,418 488 1975—Feb.1 1 ,631 44 65 60 75 1 ,471 486 126 1 539 32 Mar. 2,368 111 271 74 83 828 679 317 614 34 Apr.1 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 June1 2,195 123 384 194 231 838 640 362 603 45 July' 1,056 64 229 227 338 715 324 254 16 1,081 22 Aug. 610 101 141 70 17 719 305 93 19 255 68 Sept. 512 107 57 37 154 720 541 249 48 304 105 Oct.r 810 142 337 152 626 571 676 373 555 443 23 Nov. 874 229 81 68 1,000 848 424 45 10 434 57 Dec.1 1,284 130 473 193 330 539 363 205 27 679 83 1976—Jan.' 981 39 328 87 295 652 435 16 456 9 Feb., 704 435 298 132 645 487 302 151 552 37 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

JULY 1976 o SECURITY ISSUES A39 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 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 Period facturing and other 2 tation 3 utility cation and financial 1 Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 197 2 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 197 3 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 197 4 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1975.... 13,219 1,607 1,605 1,137 2,165 65 7,236 6,015 2,980 1,084 4,682 468 1974—IV, 3,098 126 240 -47 342 9 2,079 1,107 628 107 1,695 17 1975— I. , 5,134 262 373 77 1 1 2,653 1 ,569 1,269 24 1,742 18 II. 4,574 500 483 490 429 7 1 ,977 1,866 810 359 852 43 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 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963............... 2,460 1,504 952 25,214 1,341 23,873 1975—May.. 677 735 -58 43,832 3,879 39,953 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 June.. 703 811 -108 45,538 3,640 41 ,898 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 July... 813 1,052 -239 42,896 3,591 39,305 Aug... 753 788 -35 41,672 3,660 38,012 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Sept... 760 874 -114 40,234 3,664 36,570 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Oct. . . 914 995 -81 41,860 3,601 38,259 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 Nov... 786 911 -125 42,460 3,733 38,727 Dec... 1,040 1 ,093 -53 42,179 3,748 38,431 1969................ 6,717 3,661 3,056 48,291 3,846 44,445 1970................ 4,624 2,987 1,637 47,618 3,649 43,969 1976—Jan... 411 538 -47 46,529 3,287 43,242 1971................ 5,145 4,751 394 55,045 3,038 52,007 Feb... 262 577 -315 46,540 3,084 43,546 Mar.. . 326 677 -351 46,866 2,881 43,985 1972................ 4,892 6,563 -1,671 59,831 3,035 56,796 Apr... 305 620 -315 45,956 2,683 42,273 1973................ 4,358 5,651 -1,261 46,518 4,002 42,516 May. . 241 589 -348 45,122 2,769 42,353 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 □ JULY 1976 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1973 1974*- 1975 r Industry 1973 ^ 1974r 1975 ' IV I II III IV I II III IV Total (170 corps.) :► Sales.......................................... 442,351 564,284 586,394 121,023 126,812 143,077 145,054 149,341 138,322 145,872 147,986 154,214 Total revenue......................... 448,919 572,695 594,806 123,175 128,711 145,227 147,251 151,506 140,411 147,785 149,820 156,790 Profits before taxes............... 53,845 67,719 60,183 14,732 16,596 18,218 17,860 15,045 12,895 14,859 15,493 16,936 Profits after taxes................... 28,767 32,535 26,973 7,738 7,739 9,292 8,428 7,076 5,551 6,707 7,094 7,621 Memo: PAT unadj.1.... 28,798 32,739 27,744 7,920 7,627 9,222 8,497 7,393 5,667 6,596 7,046 8,435 Dividends................................ 11,516 12,303 12,444 3,393 2,912 2,928 3,073 3,390 3,128 3,032 3,072 3,212 Nondurable goods industries (86 corps.) :2^ Sales.......................................... 210,216 309,033 323,136 59,245 68,782 77,193 80,543 82,515 77,297 78,656 82,361 84,822 Total revenue......................... 214,028 314,584 328,502 60,423 70,066 78,654 82,021 83,843 78,616 79,940 83,595 86,351 Profits before taxes............... 30,211 46,446 40,905 8,979 11,887 11,998 12,618 9,943 9,378 9,989 10,924 10,614 Profits after taxes................... 15,537 20,568 16,303 4,452 5,055 5,740 5,473 4,300 3,586 3,919 4,441 4,357 Memo: PAT unadj.1......... 15,415 20,465 16,719 4,506 4,958 5,689 5,398 4,420 3,572 3,900 4,439 4,808 Dividends................................ 6,104 6,873 7,228 1 ,634 1,626 1,645 1,720 1,882 1,815 1 ,784 1 ,803 1,826 Durable goods industries (84 corps.):3 Sales.......................................... 232,135 255,251 263,258 61,778 58,030 65,884 64,511 66,826 r61,025 67,216 65,625 69,392 Total revenue......................... 234,891 258,111 266,304 62,751 58,645 66,573 65,230 67,663 r61,795 67,845 66,225 70,439 Profits before taxes............... 23,634 21,273 19,278 5,754 4,709 6,220 5,242 5,102 r3,517 4,870 r4,569 6,322 Profits after taxes................... 13,230 11,967 10,670 3,287 2,684 3,552 2,955 2,776 rl ,965 2,788 r2,653 3,264 Memo: PAT unadj.1......... 13,383 12,274 11,025 3,413 2,669 3,533 3,099 2,973 ’•2,095 2,696 2,607 3,627 Dividends................................ 5,412 5,430 5,216 1 ,760 1,286 1,283 1,353 1 ,508 >-1 ,313 1,248 rl ,269 1,386 Selected industries: Food and kindred products (28 corps.): Sales.......................................... 42,629 52,753 57,149 11,871 11,885 12,729 13,663 14,476 13,490 14,117 14,600 14,942 Total revenue......................... 43,198 53,728 58,156 11,938 12,110 12,996 13,939 14,683 13,708 14,356 14,844 15,248 Profits before taxes............... 3,957 4,602 5,025 1,067 1,046 1,190 1 ,289 1,077 1,066 1,190 1,385 1,384 Profits after taxes................... 2,062 2,298 2,496 543 529 607 645 517 502 607 919 668 Memo: PAT unadj.1......... 2,073 2,329 2,601 573 533 610 646 540 526 615 745 715 Dividends................................ 936 1,011 1,100 240 243 248 253 267 268 271 274 287 Chemical and allied products (22 corps.): Sales.......................................... 43,208 55,083 57,735 11 ,534 12,507 13,892 14,606 14,078 13,618 14,329 14,660 15,128 Total revenue......................... 43,785 55,676 58,376 11,704 12,667 14,066 14,778 14,165 '13,756 rl 4,503 ’•14,791 15,326 Profits before taxes............... 6,264 8,263 7,082 1,572 1,856 2,293 2,194 1,920 ri ,647 1,622 1,858 1,955 Profits after taxes................... 3,505 5,876 3,889 883 1,044 1,247 1 ,223 1,362 r932 929 ,035 993 Memo: PAT unadj.1......... 3,469 4,745 4,015 880 1,031 1,245 1,180 1,289 927 937 1,028 1,123 Dividends................................ 1,496 1,647 1,723 417 383 405 422 437 r430 425 429 439 Petroleum refining (15 corps): Sales.......................................... 93,504 165,150 172,645 27,752 36,103 41 ,362 42,747 44,938 41,988 41,342 43,873 45,442 Total revenue......................... 95,722 168,680 175,915 28,584 36,913 42,261 43,659 45,847 42,851 42,100 44,633 46,331 Profits before taxes............... 17,493 30,657 26,305 5,724 8,296 7,564 8,339 6,458 6,227 6,612 6,961 6,505 Profits after taxes................... 8,551 11,775 8,551 2,662 3,098 3,349 3,181 2,147 1,905 2,078 2,300 2,268 Memo: PAT unadj.1......... 8,505 11,746 8,712 2,688 3,011 3,304 3,132 2,299 1,871 2,040 2,268 2,533 Dividends................................ 3,146 3,635 3,801 832 864 853 899 1 ,019 966 937 r949 949 Primary metals and products (23 corps.): Sales.......................................... 42,400 54,044 48,578 11,379 11,888 13,976 14,285 13,895 12,482 12,393 12,274 11,429 Total revenue......................... 43,103 55,048 49,534 11,715 12,045 14,171 14,504 14,328 12,782 r12,604 12,479 11,669 Profits before taxes............... 3,221 5,579 2,873 919 973 1,586 1,791 1,229 1 ,015 711 r487 660 Profits after taxes................... 1,966 3,199 1,822 561 589 927 1 ,028 655 r633 478 '•396 315 Memo: PAT unadj. 1......... 2,039 3,485 2,003 608 607 942 1,137 799 639 485 381 498 Dividends................................ 789 965 945 227 221 209 238 297 273 227 r216 229 Machinery (27 corps.): Sales.......................................... 65,040 73,454 78,495 17,871 16,830 18,836 18,853 18,935 18,245 19,881 19,764 20,605 Total revenue......................... 65,925 74,284 79,469 18,168 17,012 19,023 19,075 19,174 18,464 20,104 19,956 20,945 Profits before taxes............... 7,670 7,643 8,610 2,149 1,829 2,074 1,943 1,797 1,727 2,089 2,219 2,575 Profits after taxes................... 4,236 4,214 4,770 1,200 1,006 1 ,149 1,074 985 971 1,178 1,224 1,397 Memo: PAT unadj.1......... 4,209 4,168 4,833 1,188 996 1,137 1,096 939 975 1,173 1,231 1,454 Dividends................................ 1,607 1,839 2,017 410 441 441 476 481 483 485 519 530 Motor vehicles and equipment (9 corps.): Sales.......................................... 83,017 80,386 85,863 21,186 18,467 20,979 19,443 21,497 ''18,866 22,275 21,005 23,717 Total revenue......................... 83,671 80,881 86,475 21,362 18,597 21,146 19,593 21,545 19,011 22,341 21,083 24,040 Profits before taxes............... 7,429 2,920 3,077 1,280 636 1,115 231 938 -98 854 590 1,731 Profits after taxes................... 3,991 1,686 1,471 709 369 657 133 527 -127 451 328 819 Memo: PAT unadj.1......... 4,078 1,742 1,604 763 361 648 147 586 -12 455 280 881 Dividends................................ 2,063 1,537 1,121 8. / 384 382 386 385 294 276 274 277 ^ Because of a merger, data for the textile, apparel, and leather indus­ Note—Data are obtained from published reports of companies and try, as well as total nondurables and all manufacturing, for 1973 through reports made to the Securities and Exchange Commission. Sales are net 1975, have been revised. Historical data are available upon request from of returns, allowances, and discounts, and exclude excise taxes paid di­ the Capital Markets Section, Division of Research and Statistics, Board rectly by the company. Total revenue data include, in addition to sales, Governors of the Federal Reserve System, Washington, D.C. 20551. income from nonmanufacturing operations and nonoperating income. 1 Profits after taxes unadjusted are as reported by the individual com­ Profits are before dividend payments and have been adjusted to exclude panies. These data are not adjusted to eliminate differences in accounting special charges and credits to surplus reserves and extraordinary items not treatments of special charges, credits, and other nonoperating items. related primarily to the current reporting period. Income taxes (not 2 Includes 21 corporations in groups not shown separately. shown) include Federal, State and local government, and foreign. 3 Includes 25 corporations in groups not shown separately. Previous series last published in June 1972 Bulletin, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ BUSINESS FINANCE A41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits In­ Profits Cash Undis­ Profits In­ Profits Cash Undis­ 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 11. 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 '78.8 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—I.. 142.8 57.1 85.7 33.3 52.4 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 ­ F in e c d o e m ra e l Other ties G U o . v S t . .1 Other G U o . v S t . .1 Other taxes 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_I.. 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 Period Total Durable du N r o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s th er C ni o c m ati m on u s ­ Other1 T A (S o . . R t A a . . ) l 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 1 3.96 22.05 1975 ......................... 112.78 21.83 26.10 3.79 2.54 1.84 3.17 17.00 3.13 12.73 20.59 1974—II................. 28.16 5.59 5.69 .78 .64 .61 .49 4.56 .75 3.60 5.46 111.40 Ill................. 28.23 5.65 5.96 .80 .64 .43 .58 4.42 .78 3.39 5.57 113.99 IV................. 31.92 6.64 6.99 .91 .78 .48 .71 4.80 .87 3.78 5.97 116.22 1975—1.................... 25.82 5.10 5.74 .91 .59 .44 .62 3.84 .58 3.11 4.88 114.57 II.................. 28.43 5.59 6.55 .97 .71 .47 .77 4.15 .79 3.22 5.19 112.46 Ill................. 27.79 5.16 6.51 .94 .62 .50 .85 4.16 .91 3.14 5.00 112.16 IV................. 30.74 5.99 7.30 .97 .62 .43 .93 4.85 .85 3.26 5.52 111.80 1976—1 r................. 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 □ JULY 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................................................. 564,825 634,954 688,652 695,369 709,153 725,543 741,547 755,445 1- to 4-family.................................................... 345,372 384,738 412,168 415,607 425,132 436,420 447,350 460,968 Multifamily....................................................... 76,667 85,296 91,222 91,522 91,733 92,073 92,093 88,887 Commercial....................................................... 107,349 125,572 140,965 142,701 145,353 149,072 153,119 155,424 Farm................................................................... 35,437 39,348 44,297 45,539 46,935 47,978 48,985 50,166 PRIVATE FINANCIAL INSTITUTIONS.. 450,000 505,400 542,552 546,689 558,179 570,049 581,486 592,398 1- to 4-family.................................................... 288,018 320,420 340,007 342,313 350,198 358,184 365,371 377,038 Multifamily....................................................... 59,398 64,750 68,161 68,095 68,453 68,688 68,807 65,671 Commercial....................................................... 92,063 108,735 121,948 123,684 126,634 130,153 134,100 136,305 Farm................................................................... 10,521 11,495 12,436 12,597 12,894 13,024 13,208 13,384 Commercial banks1.......................................... 99,314 119,068 132,105 131,903 133,012 134,514 136,186 138,304 1- to 4-family................................................ 57,004 67,998 74,758 74,696 75,356 76,149 77,018 78,498 Multifamily................................................... 5,778 6,932 7,619 7,176 6,816 6,363 5,915 6,023 31,751 38,696 43,679 43,924 44,598 45,694 46,882 47,288 4,781 5,442 6,049 6,107 6,242 6,308 6,371 6,495 Mutual savings banks...................................... 67,556 73,230 74,920 75,157 75,796 76,490 77,249 77, 738 1- to 4-family................................................ 41,650 44,246 44,670 44,795 45,175 45,588 46,041 50,344 15,490 16,843 17,234 17,291 17,433 17,593 17,767 13,876 10,354 12,084 12,956 12,996 13,112 13,233 13,364 13,456 Farm............................................................... 62 57 60 75 76 76 77 62 Savings and loan associations........................ 206,182 231,733 249,293 252,442 261,336 270,600 278,693 286,575 167,049 187,750 201,553 204,099 211,290 218,483 224,710 230,776 20,783 22,524 23,683 23,831 24,409 24,976 25,417 25,846 18,350 21,459 24,057 24,512 25,637 27,141 28,566 29,953 Life insurance companies................................ 76,948 81,369 86,234 87,187 88,035 88,445 89,358 89,781 1- to 4-familv................................................ 22,315 20,426 19,026 18,723 18,377 17,964 17,602 17,420 17,347 18,451 19,625 19,797 19,795 19,756 19,708 19,926 31,608 36,496 41,256 42,252 43,287 44,085 45,288 45,608 Farm............................................................... 5,678 5,996 6,327 6,415 6,576 6,640 6,760 6,827 FEDERAL AND RELATED AGENCIES .. 45,790 55,664 72,380 76,010 79,952 84,522 89,039 91,975 1- to 4-family.................................................... 30,170 35,579 46,322 48,455 51,195 54,697 58,440 60,391 Multifamily....................................................... 6,063 8,364 11,329 11,995 12,348 12,753 12,954 13,184 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- 3,338 3,476 4,015 4,047 4,297 4,681 4,970 5,143 2,199 2,013 2,009 1,879 1,915 1,951 1,990 1,922 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 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 1,754 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 Commercial....................................................... 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.-r-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

JULY 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 chases Sales d p M u er r a i i d o n e d g st O i a n n u g d t­ ­ Total C.r V hU A 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 i ,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—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 2,884 51 296 43 87 Mar. . 31,482 19,431 9,473 85 22 405 3,120 4,602 1,787 c2,815 95 98 93 128 Apr... 31,389 19,368 9,431 103 184 213 2,788 4,520 1,768 2,752 43 86 209 289 May.. 32,052 19,296 9,390 877 1,305 3,732 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 1976 Jan. 26 Feb. 9 Feb. 23 Mar. 8 Mar. 22 Apr. 5 Apr. 19 May 3 May 17 June 1 June 14 June 28 Amounts (millions of dollars): Govt.-underwritten loans Offered1................................... 103.9 252.2 126.9 299.9 146.3 106.2 132.1 483.3 634.3 349.5 146.6 261 .2 Accepted.................................. 57.7 179.9 81.2 171.9 121.6 56.2 60.1 222.3 321.4 224.7 98.8 157.5 Conventional loans Offered1................................... 33.4 57.8 44.0 75.4 46.2 56.4 55.3 110.7 128.8 131.4 77.3 93.6 Accepted.................................. 24.7 36.9 23.3 45.0 33.7 31.8 33.4 60.1 68.9 90.5 70.3 59.2 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 9.07 9.07 9.04 9.06 9.03 8.94 8.83 8.94 9.13 9.20 9.14 9.12 Conventional loans................... 9.22 9.17 9.14 9.15 9.13 9.05 9.00 9.09 9.24 9.31 9.30 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 □ JULY 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 137.8 138.6 140.3 142.0 143.0 144.9 147.0 FH A.............................................................. 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 FH A.............................................................. 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 o N f u l m oa b n e s r ( c m o ( a d i m m l o l m i l o o l u a i n t r n s t s e t ) o d f ( o th a f o m L d u o o o s a l u a l n a n n r t d s s ) ( C p in o e r t r n a e t c t r r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C ( a p t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e 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 *11.2 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

JULY 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 (p F c e e h r e a s c r g e a n e n t s ) d 2 M (y a e tu ar r s i ) ty L (p o e a r r n a t / c p i e o r n ic t) e p o r P i f c u e d r c o ( h l t l h a a o s r e u s) s. (t a d h m L o o l o u o la a s u r . n n s o ) t f F s H er L ie B s B 3 s H er U ie D s4 se m c a o r n k d e a t r 5 y 1971............................. 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 1972............................. 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 1973............................. 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 1974............................. 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 1975............................. 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 1975—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.................. 8.67 1.52 27.3 75.3 48.5 35.8 8.92 8.90 8.82 May*5............... 8.76 1.32 26.5 77.3 46.5 35.2 8.98 9.00 9.03 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—May........... 10.63 10.96 12.88 13.10 17.25 12.36 16.86 13.08 18.90 20.54 June........... 10.81 11.21 13.01 13.20 17.23 12.50 17.06 July............ 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.22 19.25 20.74 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept............ 11.31 11.72 13.20 13.41 17.15 12.84 17.61 13.43 19.31 20.87 Oct............. 11.53 11.94 13.28 13.60 17.17 12.97 17.78 Nov............ 11.57 11.87 13.16 13.47 17.16 13.06 17.88 13.60 19.49 21.11 Dec............. 11.62 11.71 13.27 13.60 17.21 13.10 17.89 1975—Jan.............. 11.61 11.66 13.28 13.60 17.12 13.08 17.27 13.60 19.80 21 .09 Feb............. 11.51 12.14 13.20 13.44 17.24 13.07 17.39 Mar............ 11 .46 11 .66 13.07 13.40 17.15 13.07 17.52 13.59 20.00 20.82 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 .. 11.08 11.66 12.95 13.16 17.04 13.13 17.58 Mayp......... 11.01 11.61 12.96 13.26 17.02 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 □ JULY 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 Nov. Dec. Jan. Feb. Mar. Apr. May Amounts outstanding (end of period) TOTAL........................................................... 146,434 155,384 162,237 159,216 162,237 160,824 160,402 160,729 162,334 164,101 By holder: Commercial banks................................ 71,871 75,846 78,703 77,864 78,703 78,293 77,957 78,039 78,982 79,785 35,404 36,208 36,695 36,383 36,695 36,528 36,458 36,450 36,745 37,022 Credit unions......................................... 19,609 22,116 25,354 24,934 25,354 25,250 25,492 26,025 26,403 26,975 16,395 17,933 18,002 16,451 18,002 17,133 16,769 16,375 16,448 16,465 3,155 3,281 3,483 3,584 3,483 3,620 3,726 3,840 3,756 3,854 By type of credit: Automobile, total.................................. 50,065 50,392 53,028 52,756 53,028 52,832 53,044 53,650 54,572 55,484 Commercial banks............................ 31,502 30,994 31,534 31,462 31,534 31,305 31.322 31,580 32,162, 32,664 Purchased...................................... 18,997 18,687 18,353 18,434 18,353 18,227 18,135 18,200 18,472 18,671 Direct.............................................. 12,505 12,306 13,181 13,028 13,181 13,078 13,187 13,381 13,690 13,993 10,718 10,618 11,439 11,381 11,439 11,503 11,579 11,695 11,903 12,080 7,456 8,414 9,653 9,491 9,653 9,612 9,704 9,908 10,051 10,269 389 366 402 422 402 412 439 467 456 471 Mobile homes: Commercial banks........................... 8,340 8,972 8,704 8,764 8,704 8,605 8,532 8,485 8,439 8,408 3,358 3,524 3,451 3,474 3,451 3,411 3,384 3,363 3,351 3,336 Home improvement, total................... 6,950 7,754 8,004 8,023 8,004 7,976 7,973 8,026 8,089 8,209 4,083 4,694 4,965 4,977 4,965 4,928 4,907 4,924 4,978 5,048 Revolving credit: 6,838 8,281 9,501 8,880 9,501 9,576 9,408 9,221 9,343 9,402 Bank check credit............................. 2,254 2,797 2,810 2,737 2,810 2,802 2,803 2,769 2,775 2,777 All other................................................. 68,629 73,664 76,738 74,581 76,738 75,621 75,258 75,215 75,765 76,485 Commercial banks, total................. 18,854 20,108 21,188 21,043 21,188 21,076 20,985 21,060 21,285 21,486 Personal loans............................... 12,873 13,771 14,629 14,458 14,629 14,589 14,549 14,578 14.743 14,871 Finance companies, total............... 20,914 21,717 21,655 21,376 21,655 21,465 21,348 21,247 21,350 21,466 Personal loans............................... 16,483 16,961 17,681 17,422 17,681 17,523 17,500 17,434 17,528 17,631 11,564 13,037 14,937 14,692 14,937 14,878 15,020 15,333 15,557 15,894 16,395 17,933 18,002 16,451 18,002 17,133 16,769 16,375 16,448 16,465 Others................................................. 902 869 956 1,019 956 1,069 1,136 1,200 1,125 1,174 Net change (during period)3 TOTAL........................................................... 19,676 8,952 6,803 1,321 1,486 1,449 1,173 1,462 1,382 1,474 By holder: 11,001 3,975 2,812 613 750 474 518 542 529 713 4,006 806 483 287 188 148 160 282 326 157 2,696 2,507 3,238 270 470 387 420 514 392 521 1,632 1,538 69 84 125 185 58 108 177 5 Others..................................................... 341 126 202 67 -46 254 17 16 -42 78 By type of credit: Automobile, total................................. 5,968 326 2,591 603 756 741 664 652 687 652 4,197 -508 495 299 450 247 353 226 311 340 2,675 -310 -360 95 162 26 35 99 162 110 1,523 -198 855 204 288 221 318 127 149 230 740 -100 821 208 117 238 146 240 224 122 1,024 958 1,239 91 184 203 165 192 151 181 Other................................................... 7 -23 36 4 5 54 -6 2 9 Mobile homes: 1,933 632 -268 9 -17 -33 -53 -18 -52 -37 Finance companies........................... 444 168 -73 14 -14 -31 -35 -11 -17 Home improvement, total.................. 1,033 804 248 74 67 109 58 69 39 70 Commercial banks........................... 482 611 271 41 46 28 29 41 26 36 Revolving credit: Bank credit cards.............................. 1,430 1,443 1,220 80 6 106 132 192 139 192 Bank check credit............................. 478 543 14 5 10 21 18 16 35 44 All other................................................. 8,389 5,036 3,072 536 678 533 389 550 546 570 Commercial banks, total................. 2,480 1,255 1,080 179 254 105 40 84 70 138 Personal loans............................... 1,492 898 858 121 238 101 27 51 69 112 Finance companies, total............... 2,564 803 -64 65 88 -60 50 43 119 53 Personal loans............................... 1,746 479 717 91 95 -7 128 62 116 21 Credit unions.................................... 1,591 1,473 1,900 173 274 173 241 307 228 326 Retailers.............................................. 1,632 1,538 69 84 125 185 58 108 177 5 Others................................................. 122 -33 87 35 -63 129 1 7 -49 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

JULY 1976 □ CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND LIQUIDATIONS (In millions of dollars) 1975 1976 Holder, and type of credit 1973 1974 1975 j Nov. Dec. Jan. Feb. Mar. Apr. May Extensions1 TOTAL.......................................................... 160,228 160,008 163,229 14,552 15,202 15,745 15,678 16,099 15,508 15,041 By holder: Commercial banks............................... 72,216 72,605 76,877 7,113 7,360 7,483 7,829 7,930 7,494 7,223 Finance companies............................... 38,922 35,644 32,582 2,873 2,870 2,975 3,018 2,945 2,913 2,776 Credit unions......................................... 21,143 22,403 24.151 1,995 2,381 2,253 2,248 2,389 2,386 2,448 Retailers2................................................ 25,440 27,034 27,049 2,302 2,431 2,578 2,347 2,596 2,544 2,313 Others 3................................................... 2,507 2,322 2,570 269 161 456 236 238 171 280 By type of credit: Automobile, total................................. 46,105 43,209 47,848 4,413 4,616 5,095 5,156 5,267 5,088 4,471 Commercial banks........................... 29,369 26,406 28,079 2,635 2,804 3,037 3 305 3,278 3,182 2,616 Purchased...................................... 17,497 15,576 15,761 1,418 1,584 1,356 1,435 1,514 1,475 1,413 Direct............................................. 11,872 10,830 12,318 1,217 1,220 1,681 1,870 1,763 1,707 1,204 Finance companies........................... 9,303 8,630 9,598 851 896 896 930 990 975 914 Credit unions.................................... 7,009 7,788 9,702 885 875 1,068 881 964 891 892 Others................................................. 424 385 470 42 42 95 40 35 40 49 Mobile homes: Commercial banks........................... 4,438 3,486 2,681 264 244 211 211 233 186 182 Finance companies.......................... 1,573 1,413 771 81 69 61 55 63 61 49 Home improvement, total.................. 4,414 4,571 4,398 408 421 440 405 414 413 385 Commercial banks........................... 2,487 2,789 2,722 251 267 235 244 253 259 233 Revolving credit: Bank credit cards............................. 13,863 17,098 20,428 1,842 1,839 1,921 2,012 2,118 1,985 2,103 Bank check credit............................. 3,373 4,227 4,024 341 396 384 392 380 394 422 All other................................................. 86,462 86,004 83,079 7,203 7,618 7,633 7,447 7,624 7,382 7,429 Commercial banks, total................ 18,686 18,599 18,944 1,780 1,810 1,697 1,665 1,669 1,489 1,667 Personal loans............................... 12,928 13,176 13,386 1,226 1,301 1,184 1,179 1,182 1,081 1,203 Finance companies, total............... 27,627 25,316 22,135 1,937 1,902 2,014 2,030 1,890 1,874 1,810 Personal loans............................... 17,885 16,691 17,333 1,581 1,549 1,643 1,685 1,551 1,545 1,465 Credit unions.................................... 13,768 14,228 13,992 1,074 1,461 1,141 1,319 1,376 1,446 1,511 Retailers............................................. 25,440 27,034 27,049 2,302 2,431 2,578 2,347 2,596 2,544 2,313 Others................................................. 941 827 959 111 14 204 86 93 29 127 Liquidations1 TOTAL.......................................................... 140,552 151,056 156,425 13,231 13,716 14,297 14,505 14,637 14,126 13,566 By holder: Commercial banks............................... 61,215 68,630 74,065 6,499 6,610 7,009 7,311 7,388 6,965 6,510 Finance companies............................... 34,916 34,838 32,099 2,586 2,682 2,827 2,858 2,663 2,587 2,619 Credit unions......................................... 18,447 19,896 20,913 1,725 1,910 1,866 1,828 1,875 1,994 1,927 Retailers2................................................ 23,808 25,496 26,980 2,218 2,306 2,393 2,289 2,488 2,367 2,308 Others 3................................................... 2,166 2,196 2,368 203 207 202 219 222 214 202 By type of credit: 40,137 42,883 45,257 3,811 3,860 4,354 4,491 4,615 4,401 3,819 25,172 26,915 27,583 2,336 2,354 2,790 2,952 3,051 2,871 2,276 Purchased...................................... 14,823 15,886 16,120 1,323 1,422 1,329 1,399 1,416 1,313 1,303 Direct.............................................. 10,349 11,029 11,463 1,013 932 1,460 1,553 1,636 1,558 973 8,563 8,730 8,777 643 779 658 783 750 751 792 5,985 6,830 8,463 794 691 865 716 772 740 711 Others................................................. 417 408 434 38 37 41 40 42 39 39 Mobile homes:. Commercial banks........................... 2,505 2,854 2,949 255 261 244 264 251 237 219 Finance companies........................... 1,129 1,245 844 67 83 91 89 63 72 67 Home improvement, total.................. 3,381 3,767 4,150 334 353 331 348 344 374 314 2,005 2,178 2,451 210 222 207 216 212 232 197 Revolving credit: Bank credit cards.............................. 12,433 15,655 19,208 1,761 1,832 1,815 1,880 1,925 1,846 1,911 Bank check credit............................. 2,894 3,684 4,010 336 386 362 374 364 359 378 All other................................................. 78,072 80,969 80,007 6,667 6,940 7,100 7,058 7,074 6,836 6,859 Commercial banks, total................ 16,205 17,345 17,864 1,601 1,555 1,591 1,625 1,584 1,418 1,529 Personal loans............................... 11,435 12,278 12,528 1,105 1,063 1,083 1,151 1,131 1,012 1,091 Finance companies, total............... 25,063 24,513 22,199 1,872 1,814 2,073 1,981 1,846 1,756 1,758 Personal loans............................... 16,139 16,212 16,616 1,490 1,454 1,650 1,556 1,489 1,429 1,445 Credit unions..................................... 12,177 12,755 12,092 901 1,187 968 1,077 1,069 1,218 1,185 Retailers.............................................. 23,808 25,496 26,980 2,218 2,306 2,393 2,289 2,488 2,367 2,308 Others................................................. 819 860 872 76 77 75 86 86 77 79 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 □ JULY 1976 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 1967 1975 1975 1976 Major market pro­ aver­ grouping por­ age tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total index...................................... 100.00 117.8 116.4 118.4 121.0 122.1 122.2 123.5 124.4 125.7 127.3 128.1 128.6 129.5 129.9 Products, total.................................... 60.71 119.3 118.8 120.9 122.3 122.8 122.4 123.8 124.9 126.0 127.4 128.1 128.2 128.7 129.0 Final products................................. 47.82 118.2 118.2 119.7 120.8 121.5 120.9 122.3 123.5 123.9 125.3 126.4 126.4 126.8 127.2 Consumer goods........................ 27.68 124.0 124.3 126.6 127.5 129.0 128.7 131.1 132.3 133.1 134.9 136.1 135.9 136.3 136.6 Equipment................................... 20.14 110.2 109.8 110.0 111.4 111.3 110.0 110.0 111.5 111.2 112.1 112.9 113.2 113.8 114.4 Intermediate products................... 12.89 123.1 120.8 125.0 127.9 127.6 128.0 129.3 129.9 133.6 135.3 134.9 134.9 135.4 135.4 Materials.............................................. 39.29 115.5 112.6 114.5 119.0 121.0 122.0 123.1 123.3 125.3 127.3 128.2 129.1 130.9 131.4 Consumer goods Durable consumer goods.................... 7.89 121.4 121.4 126.6 129.2 132.2 131.9 132.5 134.0 134.7 137.9 140.3 141.0 142.7 143.3 Automotive products..................... 2.83 125.9 128.9 137.0 139.1 142.1 140. 143.2 147.7 142.8 148.9 155.2 155.1 154.0 154.5 Autos and utility vehicles......... 2.03 113.7 116.2 127.6 130.2 133.9 133.6 134.7 140.0 133.4 142.0 149.5 151.1 152.0 154.0 Autos........................................ 1.90 101.1 102.5 114.2 116.3 118.5 119.1 120.9 122. 118.9 125.8 133.6 134.3 134.4 136.9 Auto parts and allied goods... .80 156.6 161.1 160.5 161.8 162.7 159.0 164.9 167.0 167.4 166.5 169.5 165.1 158.9 157.8 Home goods.................................... 5.06 118.8 117.3 120.8 123.5 126.7 127.0 126.5 126.4 130.3 131.7 132.0 133.1 136.5 137.1 Appliances, A/C, and TV......... 1.40 98.0 96.6 107.1 105.8 107.0 105.3 100.9 101.1 107.8 112.6 114.6 117.6 121.4 122.9 Appliances and TV............... 1.33 100.2 99.5 110.7 109.4 111.0 109.3 103.7 104.4 110.6 115.2 117.1 120.1 124.1 125.0 Carpeting and furniture........... 1.07 126.8 123.9 125.4 134.3 141.1 141.9 144.7 142.0 144.8 145.6 141.4 142.3 142.1 Misc. home goods...................... 2.59 126.9 125.8 126.4 128.8 131.4 132.6 132.9 133.6 136.6 136.3 137.9 137.8 142.3 i42.*5 Nondurable consumer goods.............. 19.79 125.1 125.5 126.7 126.9 127.6 127.4 130.6 131.5 132.5 133.9 134.4 133.9 133.9 134.0 Clothing........................................... 4.29 111.6 110.0 113.2 117.5 116.8 120.4 123.2 123.9 127.4 127.6 130.1 129.7 Consumer staples........................... 15.50 128. 129. 130.6 129.6 130.7 129.3 132.5 133.6 133.9 135.7 135.6 135.0 134.5 i 34 .* 8 Consumer foods and tobacco. 8.33 122. 123.9 125.1 125.1 125.2 125.3 127.6 127.2 128.5 129.9 129.0 127.9 127.9 Nonfood staples......................... 7.17 135. 136.7 137.0 134.9 137.1 133.8 138.2 141.0 140.2 142.3 143.3 143.3 142.3 143.1 Consumer chemical products 2.63 151.3 152.3 153.0 149.1 150.4 149.8 157.8 159.7 157.3 161.1 163.6 162.1 159.6 Consumer paper products... 1.92 107.0 107.6 108.3 105.7 108.0 104.4 107.5 113.4 113.3 113.9 113.4 114.1 114.2 Consumer energy products.. 2.62 141.6 142.5 141.9 142.3 145.0 139.2 140.9 142.8 142.4 144.3 145.0 146.0 145.2 Residential utilities............ 1.45 152.3 154.0 151.1 153.0 154.1 148.6 152.0 152.0 154.5 153.7 Equipment Business equipment............................. 12.63 128.2 126.6 127.3 129.9 129.2 128.8 129.6 131.6 131.0 132.6 134.0 134.5 135.8 136.6 Industrial equipment..................... 6.77 121.2 120.2 120.0 121.8 121.9 122.1 123.0 124.5 123.5 124.0 125.6 125.3 127.2 128.2 Building and mining equip.. . . 1.44 168.3 165.6 168.8 172.4 170.5 172.9 174.9 172.9 171.4 171.5 172.1 170.7 174.6 175.8 Manufacturing equipment 3.85 99.9 99.8 100.0 100.8 100.7 100.5 99.9 101.3 101.2 102.7 104.4 105.4 106.5 107.3 Power equipment....................... 1.47 130.8 129.2 124.5 127.2 129.5 128.9 132.3 137.6 134.6 133.1 135.6 132.7 134.4 136.0 Commercial transit, farm equip.. 5.86 136.3 133.9 135.8 139.1 137.8 136.4 137.2 139.7 139.7 142.4 143.7 145.2 145.6 146.4 Commercial equipment............. 3.26 157.8 153.9 157.8 161.8 160.4 158.5 159.5 164.4 165.0 166.6 168.5 170.0 170.8 171.8 Transit equipment..................... 1.93 101.9 102.2 104.0 104.6 104.4 102.4 102.8 102.9 100.2 103.7 104.7 107.9 107.4 108.0 Farm equipment......................... .67 130.6 127.9 120.3 127.9 123.7 126.6 127.7 125.6 131.5 135.3 134.7 132.7 133.6 Defense and space equipment...... 7.51 80.0 81.6 81.0 80.6 81.2 78.5 77.3 77.7 78.0 77.6 77.4 77.3 77.0 77.2 Intermediate products Construction supplies........................ 6.42 116.3 112.6 116.8 121.3 122.3 122.7 123.1 124.1 126.8 129.6 128.7 128.1 130.0 129.6 Business supplies................................ 6.47 129.8 128.9 133.1 134.3 132.8 133.3 135.4 135.9 140.3 140.9 141.2 141.7 140.8 Commercial energy products 1.14 150.6 151.7 151.9 153.9 150.9 147.5 149.8 147.9 158.1 154.0 157.6 158.1 158.2 Materials Durable goods materials.................... 20.35 109.1 104.3 107.3 112.9 114.5 114.6 115.2 115.5 118.3 121.6 122.4 124.1 126.9 128.1 Durable consumer parts............... 4.58 97.7 95.3 99.2 108.7 110.8 107.2 109.3 111.6 111.7 116.7 118.5 119.2 122.7 124.5 Equipment parts............................. 5.44 118.9 113.0 114.8 117.4 119.0 120.6 122.3 123.9 125.7 127.5 128.5 130.5 133.1 134.0 Durable materials n.e.c................. 10.34 109.0 103.7 106.9 112.4 113.7 114.8 114.0 112.9 117.4 120.7 121.0 123.0 125.5 126.6 Basic metal materials................ 5.57 99.1 92.8 94.9 101.3 100.0 99.5 99.5 96.1 101.9 105.1 104.0 106.6 111.4 Nondurable goods materials.............. 10.47 126.6 123.2 127.1 131.6 138.8 140.3 141.3 142.6 142.9 145.5 146.7 146.8 147.3 147.3 Textile, paper, and chem. mat.. . , 7.62 129.0 125.7 128.6 134.3 142.9 144.9 146.2 147.9 147.5 150.5 152.7 152.1 152.1 152.4 Textile materials......................... 1.85 100.6 101.8 106.1 107.8 118.2 117.3 118.4 118.9 117.8 116.2 115.5 114.3 115.7 Paper materials........................... 1.62 113.2 108.7 111.3 115.5 120.4 121.6 124.4 125.9 126.5 130.0 130.1 132.1 131.5 Chemical materials..................... 4.15 147.9 143.1 145.5 153.5 162.7 166.3 167.2 169.5 168.9 173.9 178.0 176.9 176.4 Containers, nondurable................. 1.70 127.9 124.8 131.0 131.9 140.2 137.3 134.8 136.1 139.0 142.2 141.3 142.0 141.7 Nondurable materials n.e.c.......... 1.14 108.3 103.4 110.8 112.9 109.1 114.3 118.4 116.7 118.3 117.3 115.1 120.2 123.8 Energy materials................................ 8.48 117.2 119.2 116.5 118.3 114.5 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.1 119.9 Primary energy............................... 4.65 108.3 110.4 107.6 107.7 106.0 109.6 110.5 107.3 107.7 105.4 106.2 106.7 107.6 Converted fuel materials............. 3.82 128.0 130.0 127.4 131.2 124.8 125.9 130.8 132.3 136.3 135.2 136.0 133.6 135.3 Supplementary groups Home goods and clothing................ 9.35 115.5 113.9 117.3 12C 8 122.1 124.0 125.0 125.2 129.9 129.8 131.1 131.5 134.3 134.3 Energy, total........................................ 12.23 125.5 127.3 125.2 126.7 124.5 124.5 127.1 126.6 128.8 127.5 128.6 128.2 129.0 129.2 Products........................................... 3.76 144.3 145.3 145.0 145.7 146.8 141.8 143.7 144.5 147.2 147.1 148.8 149.5 149.2 150.4 Materials.......................................... 8.48 117.2 119.2 116.5 118.3 114.5 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.1 119.9 Gross value of products in market structure (Annual rates, in billions of 1972 dollars) Products, total.......................................... i286.3 505.9 505.6 509.9 517.2 521.5 521.1 527.1 528.4 531.9 544.3 546.0 547.6 549.2 550,.0 Final products...................................... 1221.4 393.3 394.5 395.5 400.3 405.3 404.0 409.7 410.6 410.9 421.7 423.0 424.5 425.0 426,.6 Consumer goods............................. U56.3 274.4 275.5 278.4 280.7 284.3 285.0 290.5 292.0 292.3 300.6 299.7 301.7 301.3 301.,2 Equipment....................................... 165.3 119.0 118.9 117.2 119.3 121.0 119.1 119.3 118.9 119.1 121.1 123.6 123.0 124.0 125.1 Intermediate products........................... 164.9 112.6 110.9 114.4 116.9 116.1 116.6 117.6 117.9 120.8 122.8 122.6 123.0 124.2 123.6 For Notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ INDUSTRIAL PRODUCTION A49 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 1967 1975 1976 Major SIC pro­ 1975 industry grouping code por­ aver­ tion age June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June Mining and utilities. 12.05 128.5 129.7 127.2 129.0 127.2 127.9 130.5 129.2 131.8 131.5 131.6 131.0 131.6 131.5 Mining................... 6.36 112.8 113.3 110.8 111.6 111.6 113.8 114.2 112.9 113.6 112.7 113.9 113.7 114.0 114.3 Utilities.................. 5.69 146.0 148.1 145.5 148.3 144.6 143.8 148.8 147.2 152.0 152.5 151.4 150.5 151.3 150.6 Electric.............. 3. 160.8 164.6 160.0 164.7 159.0 157.3 165.5 162.3 167.4 168.7 Manufacturing. 87.95 116.3 114.6 117.0 119.7 121.4 121.2 122.7 123.6 125.2 127.0 127.9 128.4 129.0 129.7 Nondurable. 35.97 126.4 125.5 128.1 130.5 132.9 133.6 136.2 136.9 138.4 140.2 140.7 140.6 140.7 140.7 Durable........ 51 .98 109.3 107.0 109.3 112.3 113.5 112.7 113.4 114.4 115.8 117.9 119.0 120.0 121 .1 122.2 Mining Metal mining........................ .51 115.8 111 .9 107.0 115.0 113.5 112.5 118.1 117.9 122.2 124.2 122.3 124.3 118.3 Coal......................................... .69 113.4 122.4 105.5 112.9 112.6 122.2 125.6 109.9 111 .2 109.6 114.4 114.4 119.2 122.4 Oil and gas extraction 4.40 113.3 114.4 113.0 112.4 113.1 112.3 113.1 112.5 110.1 111 .9 111.7 112.1 112.2 Stone and earth minerals. .75 107.0 99.3 105.6 103.9 110.9 112.1 111.5 117.1 120.0 119.3 117.5 117.3 Nondurable manufactures Foods............................. 8.75 123.4 124.3 125.4 125.8 126.2 126.4 128.8 128.5 129.2 130.8 128.3 129.2 130.8 Tobacco products. . . . .67 111.8 109.9 114.1 110.5 114.1 113.9 118.5 116.0 117.3 118.8 122.4 115.5 Textile mill products. 2.68 122.3 124.2 127.8 130.0 138.3 137.5 141 .6 139.0 137.6 138.7 136.4 135.7 138.0 Apparel products 3.31 107.6 105.1 106.3 112.8 111.5 115.9 118.3 121 .2 123.8 128.0 126.3 126.2 Paper and products.., 3.21 116.3 113.9 116.5 120.5 124.5 126.5 127.7 129.5 130.3 133.0 132.2 133.9 134.4 134.4 Printing and publishing 4.72 113.4 113.3 115.5 115.3 114.7 113.2 115.4 118.4 120.0 121 .0 121 .0 122.0 120.9 120.6 Chemicals and products..., 7.74 147.3 144.7 147.1 150.8 154.4 157.5 161 .9 163.3 162.9 167.6 170.6 168.5 168.1 Petroleum products.............. 1 .79 124.1 122.8 127.1 126.8 130.8 125.1 124.9 126.3 125.7 129.1 131 .8 131 .7 133.0 135.5 Rubber & plastic products. 2.24 166.7 164.7 173.2 180.4 187.6 185.1 185.2 185.3 188.4 196.7 203.5 198.2 189.0 Leather and products........... 76.5 75.6 80.3 80.7 80.9 85.8 87.7 83.2 86.0 86.1 86.0 87.7 91 .2 Durable manufactures Ordnance, pvt. & govt... 19,91 3.64 76.6 79.9 76.6 76.5 75.9 72.0 70.0 70.1 69.9 69.5 69.5 69.1 69.1 68. Lumber and products.. 24 1 .64 107.6 108.6 110.6 113.6 115.8 116.8 114.1 116.4 123.5 123.9 121 .1 122.8 123.0 Furniture and fixtures. 25 1 .37 118.2 113.0 118.6 123.6 128.4 127.9 128.7 130.3 132.7 134.1 130.6 131 .3 131 .0 Clay, glass, stone prod. 32 2.74 117.9 112.4 119.2 121 .0 126.4 127.8 127.5 129.4 128.6 128.5 133.7 132.6 132.5 Primary metals................... 33 6.57 96.4 90.6 92.3 97.7 97.9 95.4 98.1 92.6 98.1 103.9 101 .4 104.5 111.5 113.5 Iron and steel................. 4.21 95.8 89.4 87.0 92.7 93.4 92.0 96.5 89.1 92.9 100.9 97.7 100.9 108.2 111.3 Fabricated metal prod ... 5.93 109.9 106.7 108.9 113.8 115.3 114.4 116.3 117.3 116.6 120.9 120.2 121 .5 121 .6 122.6 Nonelectrical machinery. 9.15 125.1 122.6 123.9 126.2 125.5 125.4 126.6 128.6 129.0 131 .5 132.9 133.5 135.0 135.6 Electrical machinery.......... 8.05 116.5 112.4 116.5 118.0 120.2 120.1 120.1 122.7 124.7 126.5 127.8 130.1 131 .6 132.8 Transportation equip............ 9.27 97.4 97.9 101 .1 105.0 105.9 104.4 104.7 106.7 105.8 109.0 111 .2 110.8 112.8 114.2 Motor vehicles & pts 4.50 111.1 110.2 116.3 123.7 126.8 126.5 127.1 130.1 126.7 135.2 140.8 141 .7 144.2 146.3 Aerospace & misc. tr. eq.. 4.77 84.5 86.5 86.9 87.3 86.3 83.6 83.6 84.7 86.1 84.3 83.3 81 .8 83.4 83.9 Instruments.............................. 2.11 132.3 129.5 130.7 131 .9 135.1 136.0 136.4 140.9 142.0 141 .8 144.4 145.4 149.3 148.8 Miscellaneous mfrs................ 1.51 128.3 128.4 128.8 131 .5 132.1 134.6 137.6 137.3 139.5 140.7 142.5 140.7 147.0 145.6 i 1972 dollars. N.B. Published groupings include some series and subtotals not shown separately. For summary description and historical data, see Bulletin for June 1976, pp. 470-79. Availability of detailed descriptive and historical data will be announced in a forthcoming Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 BUSINESS ACTIVITY; CONSTRUCTION □ JULY 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Period Products tion struc­ tural Total Whole­ Total in mfiz. 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 1955........................ 90.0 76.9 92.9 61 .1 59 80.2 87.8 1956........................ 88.2 79.6 93.9 64.6 61 81 .4 90.7 1957........................ 84.5 80.3 92.2 65.4 64 84. 3 93.3 1958........................ 75.1 78.0 83.9 60.3 64 86.6 94.6 1959............... A 81 .4 81 .0 88.1 67.8 69 87.3 94.8 1960........................ 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 1961........................ 77.6 70.2 82.1 84.5 68.0 70 89.6 94.5 1962........................ 81 .4 78.1 84.4 87.3 73.3 75 90.6 94.8 1963........................ 76.5 76.4 75.5 81 .3 67.5 79.9 76.7 75.8 83.0 86.1 86.1 87.8 76.0 79 91 .7 94.5 1964........................ 81 .7 80.9 79.8 85.8 71 .4 85.2 82.9 81 .0 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965........................ 89.8 88.2 87.6 92.6 80.7 90.6 92.4 89.7 89.0 93.2 92.3 93.9 88.1 90 94.5 96.6 1966........................ 97.7 95.9 95.9 97.3 94.0 96.2 100.7 97.9 91 .9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967........................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968........................ 106.3 106.2 106.2 105.9 106.5 106.3 106.5 106.4 87.7 113.2 103.2 101 .4 108.3 109 104.2 102.5 1969........................ 111.1 110.3 109.6 109.8 109.3 112.9 112.5 111 .0 86.5 123.7 106.9 103.2 116.6 114 109.8 106.5 1970........................ 107.8 106.9 105.3 109.0 100.1 112.9 109.2 106.4 78.3 123.1 107.7 98.1 114.1 119 116.3 110.4 1971........................ 109.6 108.5 106.3 114.7 94.7 116.7 111.3 108.2 75.0 145.4 108.1 94.2 116.7 130 121 .2 113.9 1972........................ 119.7 118.0 115.7 124.4 103.8 126.5 122.3 118.9 78.6 165.3 111 .9 97.6 131 .5 142 125.3 119.8 1973........................ 129.8 127.1 124.4 131 .5 114.5 137.2 133.9 129.8 83.0 179.5 116.8 103.2 149.2 160 133.1 134.7 1974........................ 129.3 127.3 125.1 128.9 120.0 135.3 132.4 129.4 78.9 169.7 119.1 102.1 157.1 171 147.7 160.1 1975........................ 117.8 119.3 118.2 124.0 110.2 123.1 115.5 116.3 68.7 166.0 116.9 91 .4 151 .0 186 161 .2 174.9 1975—June........... 116.4 118.8 118.2 124.3 109.8 120.8 112.6 114.6 567.0 174.0 115.9 89.8 146.4 186 160.6 173.7 July........... 118.4 120.9 119.7 126.6 110.0 125.0 114.5 117.0 1 165.0 116.4 89.7 148.7 190 162.3 175.7 Aug............ 121 .0 122.3 120.8 127.5 111.4 127.9 119.0 119.7 [ r69.0 208.0 116.9 90.9 154.2 191 162.8 176.7 Sept............ 122.1 122.8 121 .5 129.0 111.3 127.6 121 .0 121 .4 J 157.0 117.4 92.0 157.0 189 163.6 177.7 Oct............. 122.2 122.4 120.9 128.7 110.0 128.0 122.0 121 .2 1 166.0 117.8 92.5 158.4 192 164.6 178.9 Nov............ 123.5 123.8 122.3 131 .1 110.0 129.3 123.1 122.7 \ r70.7 148.0 117.8 92.4 158.9 192 165.6 178.2 Dec............ 124.4 124.9 123.5 132.3 111 .5 129.9 123.3 123.6 J 137.0 118.1 93.0 162.3 198 166.3 178.7 1976—Jan............. 125.7 126.0 123.9 133.1 111.2 133.6 125.3 125.2 | 183.0 118.7 94.0 165.9 197 166.7 179.3 Feb............ 127.3 127.4 125.3 134.9 112.9 135.3 127.3 127.0 r72.1 170.0 119.0 94.3 165.4 201 167.1 179.3 Mar............ 128.1 128.1 126.4 136.1 112.9 134.9 128.2 127.9 I 185.0 119.4 94.9 167.4 204 167.5 179.6 Apr.r......... 128.6 128.2 126.4 135.9 113.2 134.9 129.1 128.4 1 189.0 119.9 95.5 166.1 204 168.2 181 .3 Mayr......... 129.5 128.7 126.8 136.3 113.8 135.4 130.9 129.0 } 73.0 205.0 119.9 95.4 170.5 201 169.2 181 .8 June........... 129.9 129.0 127.2 136.6 114.4 135.4 131 .4 129.7 J 119.9 94.9 170.7 183.1 ▲ Revised data for 1955-62, comparable to the revised data beginning Capacity utilization: Based on data from Federal Reserve, McGraw- 1963 shown below, will be published later. Hill Economics Department, and Dept, of Commerce. 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; 5 Figure is for second quarter 1975. includes data for Alaska and Hawaii beginning with 1959. Note.—All series: Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1975 1976 Type of ownership and 1974 1975 type of construction May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May ’otal construction contracts 1......... 93,685 90,237 9,143 9,324 9,044 10,037 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408 9,836 By type of ownership: Public............................................... 32,062 31,415 2,875 3,891 3,784 3.040 2,725 2,544 1 ,597 1,724 1,655 1,719 2,192 2,383 3,915 Private i.......................................... 61,623 58,822 6,268 5,432 5,260 6,997 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025 5,921 By type of construction: Residential building 1................ 33,567 31,347 3,073 3,116 3,093 2,784 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003 3,955 Nonresidential building............. 33,131 30,577 2,877 3,169 3,165 2,666 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741 2,819 Nonbuilding.................................. 26,987 28,313 3,193 3,040 2,786 4,587 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664 3,062 ’rivate housing units authorized... 1,074 925 912 949 1,042 995 1,095 1,079 1,085 1,028 1,120 1,134 1,134 '1,095 1,158 (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

JULY 1976 □ CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 1 Nonresidential Conser­ Period Total i Total d R en es ti i a ­ l Total Buildings P U i u ti b t e i l s l i ­ c Total M ta i r l y i­ H w ig ay h­ de v v a a e n ti l d o o n p­ Other Indus­ Com­ Other and ment trial mercial b in u g i s l d 2 ­ Other 1967................................. 78,082 52,546 25,564 26,982 25,536 695 8,591 2,124 14,126 1968................................. 87,093 59,488 30,565 28,923 6,021 7,761 4,382 i 0,759 27,605 808 9,321 1,973 15,503 1969................................. 93,917 65,953 33,200 32,753 6,783 9,401 4,971 11,598 27,964 879 9,250 1,783 16,052 1970................................. 94,855 66,759 31,864 34,895 6,518 9,754 5,125 13,498 28,096 718 9,981 1,908 15,489 1971................................ 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 1972................................. 124,085 93,901 54,288 39,613 4,676 13,464 5,898 15,575 30,184 1,087 10,429 2,172 16,496 1973 r.............................. 137,915 105,412 59,727 45,685 6.243 15,453 5,888 18,101 32,505 1,170 10,506 2,313 18,516 1974 r.............................. 138,526 100,179 50.378 49,801 7,902 15,945 5,797 20,157 38,347 1,185 12,083 2,782 22,297 1975 r.............................. 132,043 93,034 46,476 46,558 8,017 12,810 5,585 20,146 39,009 1,392 12,620 3,252 21,745 1975—Mayr................. 127,104 89,875 43,944 45,931 8,367 12,344 5,389 19,831 37,229 1,264 12,227 3,132 20,606 Juner................. 129,666 90,589 44,738 45,851 8,121 12,185 5,476 20,069 39,077 1,209 12,538 3,481 21,849 July r................... 133,096 91,970 46,123 45,847 8,175 12,334 5,449 19,889 41,126 1,339 12,536 3,417 23,834 Aug. r................. 132,178 92,062 46,332 45,730 8,045 12.365 5,581 19,739 40,116 1,403 13,164 3,387 22,162 Sept.r................. 136,310 95,365 48,375 46,990 7,895 12,369 5,820 20,906 40,945 1,597 14,152 3,442 21,754 Oct. r................... 136,204 95,561 49,396 46,165 7,591 12,418 5,604 20,552 40,643 1,500 14,076 3,194 21,873 Nov.r................. 138,040 97,346 50,409 46,937 7,720 12,420 5,754 21,043 40,694 1,617 12,497 3,554 23,026 Dec. r.................. 137,833 98,063 52,061 46,002 7,582 12,209 5,608 20,603 39,770 1,583 11,766 3,666 22,755 1976—Jan.r................... 136,898 99,530 53,087 46,443 7,522 11,479 5,843 21,599 37,368 1,505 9,662 3,177 23,024 Feb.r.................. 139,253 102,858 55,625 47,233 7,842 12,762 6,024 20,605 36,395 1,598 8,059 3,953 22,785 Mar.r................. 144,458 106,441 57,464 48,977 7,605 13,346 5,957 22,069 38,017 1,454 9,033 3,331 24,199 Apr.r.................. 142,057 104,166 56,094 48,072 7,227 12,604 5,567 22,674 37,891 1,530 May2*................. 139,989 103,186 54,985 48,201 6,682 12,044 5,852 23,623 36,803 1,435 1 Data beginning Jan. 1976 are not strictly comparable with prior data 2 Includes religious, educational, hospital, institutional, and other buildbecause 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) 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 r.......................................... 1,161 892 268 1,297 866 430 1,003 531 472 216 544 383 39.3 38.9 1975—May............................... 1,085 853 232 1,269 827 442 1,060 513 546 209 554 383 39.5 36.9 June............................... 1,080 874 206 1,202 808 394 1,045 517 528 201 551 379 37.9 37.2 July................................ 1,207 916 291 1,261 882 379 1,039 521 518 213 548 381 38.6 37.4 Aug................................ 1 ,264 979 285 1,267 880 387 1,036 528 507 225 573 378 38.2 37.8 Sept................................ 1 ,304 966 338 1,315 969 346 1 ,037 532 505 228 571 384 39.7 38.2 Oct.................................. 1,431 1,093 338 1,115 738 377 1,061 560 504 235 610 389 40.7 38.4 Nov................................ 1,381 1,048 333 1,386 992 394 1,037 555 482 230 660 381 41.1 38.6 Dec................................. 1,283 962 321 1,329 993 336 1,038 559 479 224 641 378 42.1 38.9 1976—Jan.................................. 1,236 957 279 1,213 926 287 1,041 562 479 263 573 379 41.6 39.1 Feb.'............................. 1,547 1,295 252 1,299 953 346 1,053 582 471 287 677 385 42.9 39.3 Mar.r............................ 1,417 1,110 307 1,393 1,024 369 1,052 591 461 244 583 389 43.6 39.6 Apr................................. 1,381 1,063 318 1,262 981 281 1,060 598 462 237 613 393 44.1 39.9 May**............................. 1,415 1,057 358 261 i 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 □ JULY 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n ( o s o N t p t i a t u .S u l l t a . n A i t o o i . o n ) n n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f a S o o b . r A t c o a e . r l ) Total Total E In m c n u p o l l t n o u a y ra g e l r d i- 1 In U pl n o e y m ed ­ U (p n e m e r S r a m . e A t c e p n e . 2 l ) t n o y t; ­ agriculture industries 1970............................. 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971............................. 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972............................. 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1973............................. 148,263 57,222 91,040 88,714 84,409 80,957 3,452 4,304 4.9 1974............................. 150,827 ‘57,587 93,240 91,011 85,936 82,443 3,492 5,076 5.6 1975............................. 153,449 58,655 94,793 92,613 84,783 81,403 3,380 7,830 8.5 1975—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 June................. 155,925 57,674 96,780 94,643 87,500 84,206 3,294 7,143 7.5 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract Transporta­ Period Total M t a u n ri u n f g ac­ Mining con ti s o tr n uc­ ti p o u n b a li n c d Trade Finance Service G m ov e e n r t n­ utilities 70,920 19,349 623 3,536 4,504 15,040 3,687 11,621 12,561 71,216 18,572 603 3,639 4,457 15,352 3,802 11,903 12,887 73,711 19,090 622 3,831 4,517 15,975 3,943 12,392 13,340 1973............................................................... 76,896 20,068 644 4,015 4,644 16,674 4,091 13,021 13,739 1974............................................................... 78,413 20,046 694 3,957 4,696 17,017 4,208 13,617 14,177 1975............................................................... 76,987 18,342 745 3,462 4,499 16,949 4,473 13,996 14,771 SEASONALLY ADJUSTED 1975—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.................................................... 78,963 18,973 772 3,399 4,510 17,444 4,293 14,498 15,074 Mayp................................................ 78,964 18,956 773 3,407 4,502 17,435 4,278 14,542 15,071 June?................................................ 78,988 18,901 781 3,393 4,506 17,454 4,297 14,581 15,075 NOT SEASONALLY ADJUSTED 1975—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 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.................................................... 78,688 18,813 766 3,270 4,474 17,295 4,276 14,498 15,296 MayP................................................ 79,152 18,861 775 3,407 4,497 17,401 4,278 14,644 15,289 June^................................................ 79,852 19,067 797 3,556 4,560 17,546 4,344 14,800 15,182 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

JULY 1976 □ PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation 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 e u s g h r d r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d l e ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g e d d a ­ ­ g O s a o e t n o 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 87.8 196 5 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 196 6 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 197 3 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 197 4 147.7 161.7 150.6 130.6 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 197 5 161 .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—May 159.3 171.8 165.3 136.4 180.1 230.2 167.3 157.4 141 .8 147.4 152.6 166.8 149.9 143.8 147.1 June 160.6 174.4 166.4 136.9 181 .4 230.6 169.4 158.1 141 .4 149.8 153.2 168.1 150.3 144.1 147.3 July. 162.3 178.6 167.1 137.3 182.3 234.1 170.4 158.3 141.1 152.6 154.0 169.8 151.2 144.4 147.6 Aug. 162.8 178.1 167.7 138.0 182.8 235.7 171.2 158.8 142.3 153.6 154.6 170.9 151.4 144.7 148.1 Sept. 163.6 177.8 168.9 138.4 183.9 238.7 174.0 160.1 143.5 155.4 155.4 172.2 152.1 146.0 148.0 Oct.. 164.6 179.0 169.8 139.3 184.8 243.3 174.2 160.9 144.6 156.1 156.3 173.5 152.9 146.6 148.5 Nov. 165.6 179.8 171.3 139.9 186.8 246.5 176.8 161.6 145.5 157.4 156.5 173.3 153.6 147.0 148.9 Dec. 166.3 180.7 172.2 140.6 187.8 248.7 179.0 162.0 145.2 157.6 157.5 174.7 154.6 147.5 149.8 1976—Jan.. 166.7 180.8 173.2 141.2 188.8 248.9 179.5 163.7 143.3 158.1 158.6 176.6 155.7 148.2 150.5 Feb. 167.1 180.0 173.8 142.1 188.6 249.4 181.9 165.2 144.0 158.5 159.7 178.8 157.0 148.5 151.3 Mar. 167.5 178.7 174.5 142.7 188.7 247.6 183.7 166.6 145.0 159.8 160.6 180.6 157.4 149.0 151.8 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 May 169.2 179.9 175.6 143.8 189.6 246.2 186.1 167.9 146.8 163.5 162.1 182.6 158.9 150.3 152.9 Note.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro­ Period m c t o i o e m d s i ­ ­ p F u r a c o r t m d s ­ c f f e o a e s n o e s d d d e s d s 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 e u c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s . , t­ e c M a q e h n r u i y a d n i ­ p ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i a o e u r n n n i t p a s t ­ 1 ­ ­n c M e e o l i l u s a ­ s ­ ment I960......................... 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965......................... 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96^4 93.9 96.9 97.5 95.9 1966......................... 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967......................... 100.0 100.0 100.0 100.0 100.0 100 0 100.0 100.0 100 0 100 0 100*0 100 0 100 0 100.0 100.0 100.0 1968......................... 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103!4 11313 10111 102.6 103! 2 102.8 103.7 102.2 1969......................... 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 1*00 .*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—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 June............. 183.1 196.5 181.8 181 .3 148.1 167.4 260.3 187.1 157.2 199.8 179.5 196.4 170.2 145.3 186.0 149.1 154.4 i Dec. 1 968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME □ JULY 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 II III Gross national product. 286.2 982.4 1,171.1 1,306.3 1,406.9 1,498.9 1,433.6 1,460.6 1.528.5 1.572.9 1,620.4 Final purchases.............. 279.4 978.6 1,161.7 1,288.8 1,397.2 1,513.5 1,458.4 1,490.2 1.530.6 1.574.9 1,604.9 Personal consumption expenditures. 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 977.4 1,001.0 1,029.6 Durable goods............................... 30.8 84.9 111.2 122.9 121.9 128.1 118.9 123.8 131.8 137.6 145.9 Nondurable goods........................ 98.2 264.7 299.3 334.4 375.7 409.8 394. 1 404.8 416.4 423.7 430.8 Services............................................ 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 Fixed investment.................................. 47.0 137.0 178.8 203.0 202.5 197.3 193.5 191.1 197.1 207.4 216.7 Nonresidential.................................. 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 52.1 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 58.6 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 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 9.3 Exports.......................................... 13.9 62.5 72.7 101.5 144.2 147.8 148.2 140.7 148.5 153.8 154.2 Imports......................................... 12.0 58.5 75.9 94.2 136.5 126.5 130.9 116.4 126.4 132.1 144.9 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 Other............................................................ 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........................ 533.5 1,075.3 1,171.1 1,233.4 1,210.7 1,186.1 1,158.6 1,168.1 1,201.5 1,216.2 1,241.8 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 236.2 798.4 951.9 1,067.3 1,141.1 1,208.1 1,155.2 1,180.8 1,232.5 1,262.6 1,303.3 154.8 609.2 715.1 797.7 873.0 921.4 897.1 905.4 928.2 955.1 982.6 Wages and salaries............................................................ 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 17.4 95.3 115.6 126.5 137.7 151.3 146.4 149.7 152.6 156.5 159.0 Supplements to wages and salaries.................................. 7.8 62.7 81.4 96.8 110.0 119.8 116.1 117.8 120.9 124.4 131.1 Employer contributions for social insurance............ 4.2 30.7 39.4 49.3 55.5 58.5 51A 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 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 37.6 66.4 89.6 98.6 93.6 106.3 83.4 101.6 119.6 119.3 131.4 Profits before tax................................................................ 42.6 71.5 96.2 117.0 132.1 117.1 97.1 108.2 129.5 132.4 142.8 Profits tax liability......................................................... 17.9 34.5 41.5 48.2 52.6 45.7 37.5 41.6 50.7 52.5 57.1 Profits after tax............................................................... 24.7 37.0 54.6 68.8 79.5 71.4 59.6 66.6 78.8 79.9 85.7 8.8 22.9 24.6 27.8 31.1 32.8 32.1 32.6 33.5 33.1 33.3 Undistributed profits................................................. 15.9 14.1 30.0 40.9 48.4 38.6 27.5 34.0 45.3 46.8 52.4 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

JULY 1976 □ NATIONAL PRODUCT AND INCOME A55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 I II III IV I Gross national product........................................................... 286.2 982.4 1,171.1 1,306.3 1,406.9 1,498.9 1,433.6 1,460.6 1,528.5 1,572.9 1,620.4 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 .8 4.0 4.7 5.2 5.8 6.3 6.2 6.3 6.4 6.5 6.6 Statistical discrepancy................................................ 2.0 -2.1 1.7 .4 -.6 -2.9 -3.2 -8.9 -3.2 5.0 4.4 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....................................................... 236.2 798.4 951.9 1,067.3 1,141.1 1,208.1 1,155.2 1,180.8 1,232.5 1,262.6 1,303.3 Less: Corporate profits with inventory valuation and capital consumption adjustments....................... 33.7 67.9 92.1 100.2 91.3 100.7 78.9 96.6 113.1 112.7 123.9 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..................................................................... 8.8 22.9 24.6 27.8 31.i 32.8 32.1 32.6 33.5 33.1 33.3 Business transfer payments...................................... .8 4.0 4.7 5.2 5.8 6.3 6.2 6.3 6.4 6.5 6.6 Equals: Personal income....................................................... 226.1 801.3 942.5 1,054.3 1,154.7 1,245.9 1,203.6 1,223.8 1,261.7 1,294.5 1,325.2 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 1,076.7 1,024.0 1,081.7 1,087.1 1,114.0 1,140.7 Less: Personal outlays.......................................................... 194.7 635.4 751.9 830.4 909.5 987.8 950.4 974.2 1,001.3 1,025.4 1,054.5 Personal consumption expenditures................... 192.0 618.8 733.0 808.5 885.9 963.8 926.4 950.3 977.4 1,001.0 1,029.6 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................... 361.9 741.6 801.3 856.0 843.5 856.7 831.6 869.8 858.2 867.3 880.3 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. Apr. May*3 Total personal income............................ 1154.71245.9 1209.01217.21245'. 21244.01262.41278.71287.41295.9 1300.2 1313.61325.9 1346.21357.2 Wage and salary disbursements........... 763.6 801.6 782.7 787.4 792.7 797.4 808.8 815.6 824.1 831.2 836.8 846.0 851.6 864.1 871.$ Commodity-producing industries... 273.7 273.6 265.8 267.0 268.8 270.9 275.6 279.5 281.7 283.2 286.9 291.2 293.0 298.0 300.3 Manufacturing only......................... 211.2 211.2 204.9 205.6 207.2 208.8 213.2 216.6 218.7 219.7 223.3 226.9 228.4 232.7 234.2 Distributive industries....................... 184.3 195.1 190.9 191.7 192.9 193.9 197.7 198.2 200.2 202.4 202.9 205.8 207.2 210.2 211.9 Service industries................................ 145.0 158.6 154.5 156.1 157.4 158.2 160.3 161.5 163.1 165.3 165.7 167.1 168.8 171.7 174.1 Government........................................ 160.6 174.3 171.5 172.6 173.6 174.4 175.2 176.4 179.0 180.3 181.2 181.9 182.6 184.2 185.3 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 65.3 66.1 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 87.3 89.8 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 60.4 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 26.9 29.4 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 23.1 23.2 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 33.8 33.9 Personal interest income....................... 106.5 120.5 116.6 117.5 118.6 119.7 121.2 122.9 125.1 127.9 129.0 130.4 131.8 134.8 135.8 Transfer payments.................................. 140.4 175.0 168.6 169.3 189.0 176.8 178.1 181.3 180.6 181.4 182.9 184.7 188.9 189.2 188.6 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 54.0 54.3 Nonagricultural income.......................... 1119.1 1210.21179.71186.21212.51207.21222.11234.81245.61256.31262.9 1276.31288.91307.41315.8 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 38.8 41.4 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 □ JULY 1976 SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 Transaction category, or sector 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 HI H2 Credit market funds raised by nonfinancial sectors 1 67.9 82.4 96.0 91.8 98.2 147.4 169.4 187.4 180.1 204.6 186.7 222.2 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 4 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 Debt capita] instruments................................... 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 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 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 Multifamily residential mortgages................ 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 Other debt instruments..................................... 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 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 20 21 Bank loans n.e.c.............................................. 10.9 9.8 13.6 15.5 6.7 7.8 18.9 35.8 27.3 -11.3 -20.2 -2.5 21 22 Open market paper........................................ 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 Foreign........................................................................ 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 Debt instruments.......................................................... 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 -.2 -.3 -.5 -.2 -.3 1 .6 2.9 2.8 4.7 4.0 1.4 6.6 34 35 -.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 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 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 Total funds raised............................................................ 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. 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JULY 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 1975 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors........................................................ 66.9 80.0 95.9 88.0 92.5 135.9 158.9 180.1 176.2 194.6 176.2 212.8 1 By public agencies and foreign 2 Total net advances........................................................... 11.9 11.3 12.2 15.7 28.1 41.7 18.3 33.2 49.2 39.2 41.6 36.8 2 3 U.S. Government securities...................................... 3.4 6.8 3.4 .7 15.9 33.8 8.4 11.0 8.6 18.5 28.3 8.8 3 4 Residential mortgages................................................ 2.8 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— 8 7 S U p .S o . n s G o o re v d e r c n r m ed e i n t t a .. g .. e .. n .. c ... i . e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 . .1 9 - 4 . . 6 1 4 3 . . 9 2 2 8 . . 9 9 1 2 0 . . 8 0 3 3 . . 2 2 2 7 . . 6 0 20 3 . . 3 0 2 7 4. . 1 4 1 1 3 2 . . 3 6 1 11 2 . . 1 7 1 14 3 . . 1 9 8 7 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 8.2 3.8 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 12 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 13 14 State and local obligations........................................ 5.6 7.8 9.5 9.9 11.2 17.6 14.4 13.7 17.4 15.4 17.1 13.8 14 15 Corporate and foreign bonds................................... 10.3 16.0 13.8 12.5 20.0 19.5 13.2 10.1 20.6 33.1 41.1 25.1 15 16 Residential mortgages................................................ 12.0 13.0 15.5 15.7 12.8 29.1 44.6 44.1 25.6 22.3 19.1 25.5 16 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 17 18 Less: FHLB advances................................................ .9 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -8.1 .2 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions...................................................................... 45.4 63.5 75.3 55.3 74.9 110.7 153.4 158.8 131.5 123.0 115.0 130.8 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..................................................... 7.9 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 40.8 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 10.8 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 13.8 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 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 2.3 1.9 5.8 10.2 -4.4 -.6 4.0 11.3 1.6 .4 2.1 -1.4 36 37 2.3 1.7 2.1 2.0 1.4 1.5 .8 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 2.1 4.3 2.9 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. INTERNATIONAL TRANSACTIONS □ JULY 1976 1. U.S. INTERNATIONAL TRANSACTIONS—SUMMARY (In millions of dollars. Quarterly figures are seasonally adjusted except as noted.1 1975 1976 Line Credits (+), debits ( —) 1973 1974 1975 I II III IV I 1 Merchandise exports................................................................................. 71,410 98,310 107,133 27,020 25,848 26,610 27,655 26,939 2 Merchandise imports................................................................................ 70,499 103,679 98,150 25,585 22,598 24,511 25,456 28,447 3 Merchandise trade balance 2............................................................... 911 -5,369 8,983 1,435 3,250 2,099 2,199 -1,508 4 Military transactions, net......................................................................... -2,287 -2,083 -883 -402 -378 -115 12 -4 5 Investment income, net............................................................................ 5,178 10,227 6,007 1,124 1,531 1,682 1,670 2,129 6 Other service transactions, net............................................................... 102 812 2,163 438 648 619 455 441 7 Balance on goods and services 3............................................................. 3,905 3,586 16,269 2,595 5,051 4,285 4,336 1,058 8 Unilateral transfers.................................................................................... -3,883 -7,185 -4,620 -1,179 -1,146 -1,044 -1,251 -1,138 9 Remittance, pensions, and other transfers...................................... -1,945 -1,710 -1,727 -431 -434 -429 -433 -480 10 U.S. Government grants (excluding military)................................. -1,938 -5,475 -2,893 -748 -712 -615 -818 -658 11 Balance on current account....................................................................... 22 -3,598 11,650 1,416 3,905 3,241 3,085 -80 12 Not seasonally adjusted......................................................................... 2,934 3,903 529 4,284 1,467 13 U.S. Govt, capital transactions, other than official reserve assets, net (outflow, — ).................................................................................. -1,492 1,089 -1,731 -455 -422 -401 -453 795 14 Change in U.S. official reserve assets (increase, — )............................ 209 -1,434 -607 -325 -29 -342 89 -773 15 Gold......................................................................................................... 16 SDR’s....................................................................................................... 9 -172 -66 -4 -16 -25 -21 -45 17 Reserve position in IMF..................................................................... -33 -1,265 -466 -307 -7 -95 -57 -237 18 Foreign currencies................................................................................. 233 3 -75 -14 -6 -222 167 -491 19 Change in U.S. private assets abroad (increase, — )........................... -13,998 -32,323 -27,061 -6,777 -7,074 -3,109 -10,101 -8,065 20 Bank-reported claims........................................................................... -5,980 -19,494 -13,238 -3,702 -3,820 -429 -5,287 -3,714 21 Long-term........................................................................................... -933 -1,183 -2,351 -441 -381 -586 -943 -245 22 Short-term........................................................................................... -5,047 -18,311 -10,887 -3,261 -3,439 157 -4,344 -3,469 23 Nonbank-reported claims.................................................................... -2,378 -3,221 -1,309 363 59 -972 -759 -264 24 Long-term........................................................................................... -396 -474 -384 22 55 -139 -322 -84 25 Short-term........................................................................................... -1,982 -2,747 -925 341 4 -833 -437 -180 26 U.S. purchase of foreign securities, net............................................ -671 -1,854 -6,206 -1,928 -979 -938 -2,361 -2,507 27 U.S. direct investments abroad, net.................................................. -4,968 -7,753 -6,307 -1,510 -2,334 -770 -1,694 -1,580 28 Change in foreign official assets in the United States (increase,+).. 5,145 10,257 4,603 2,958 1,913 -2,356 2,088 1,856 29 U.S. Treasury securities....................................................................... 114 3,282 4,312 5,298 818 -2,880 1,076 1,713 30 Other U.S. Govt, obligations............................................................. 582 902 891 494 65 25 307 65 31 Other U.S. liabilities reported by U.S. banks................................. 4,126 5,818 -2,474 -3,203 591 17 121 -571 32 Other foreign official assets................................................................. 323 254 1,874 369 439 482 584 649 33 Change in foreign private assets in the United States (increase,+)• • 12,220 21,452 8,544 -565 1,576 4,384 3,148 1,693 34 U.S. bank-reported liabilities............................................................. 4,702 16,017 653 -2,459 776 1,634 702 881 35 Long-term........................................................................................... 227 9 -355 -45 -287 -114 91 166 36 Short-term........................................................................................... 4,475 16,008 1,008 -2,414 1,063 1,748 611 715 37 U.S. nonbank-reported liabilities....................................................... 1,035 1,615 78 322 58 -141 -161 24 38 Long-term........................................................................................... 298 -212 313 357 77 -99 -22 -170 39 Short-term........................................................................................... 737 1,827 -235 -35 -19 -42 -139 194 40 Foreign private purchases of U.S. Treasury securities, net......... -214 697 2,649 752 -423 2,158 162 451 41 Foreign purchases of other U.S. securities, net.............................. 4,041 378 2,727 344 385 781 1,217 1,026 42 Foreign direct investments in the United States, net..................... 2,656 2,745 2,437 476 780 -48 1,229 -689 43 Allocations of SDR’s............... 44 Discrepancy................................................................................................ -2,107 4,557 4,602 3,748 131 -1,417 2,143 4,574 45 Owing to seasonal adjustments.......................................................... 1,330 -37 -2,565 1,275 1,357 46 Statistical discrepancy in recorded data before seasonal adjustment...................................................................................... -2,107 4,557 4,602 2,418 168 1,148 868 3,217 Memoranda: Changes in official assets: 47 U.S. official reserve assets (increase,—)........................................ 209 -1,434 -607 -325 -29 -342 89 -773 48 Foreign official assets in the U.S. (increase,+).......................... 5,145 10,257 4,603 2,958 1,913 -2,356 2,088 1,856 49 Transfers under military grant programs (excluded from lines 1, 4, and 10 above)....................................................................... 2,809 1,817 2,232 797 1,202J 56 177 50 For notes see opposite page. 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JULY 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 1974 1975 r 1976 1973 1974 3 1975 r 1973 19743 1975 r 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 9,578 5,703 8,265 7,266 9,182 -142 -612 +955 + 396 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 To G ta o l 2 ld st T o r c e k a 1 sury v c fo e u C r r r o e t r i e i n b 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’s3 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 C u c r r r o i e t r e i i n e b s g n ­ l n e ­ p R o I e M s s i i n e t r F io v n e SDR’s3 1961.. 18,753 16,947 16,889 116 1,690 1975— 1962.. 17,220 16,057 15,978 99 1,064 June.... 16,242 11,620 11,620 25 2,179 2,418 1963.. 16,843 15,596 15,513 212 1,035 July___ 16,084 11,618 11,618 2 2,135 2,329 1964.. 16,672 15,471 15,388 432 769 16,117 11,599 11,599 28 2,169 2,321 16,291 11,599 11,599 247 2,144 2,301 1965.. 15,450 13,806 13,733 781 863 16,569 11,599 11,599 413 2,192 2,365 1966.. 14.882 13,235 13,159 1,321 326 16,592 11 ,599 11,599 423 2,234 2,336 1967.. 14,830 12,065 11,982 2,345 420 16,226 11,599 11,599 80 2,212 2,335 1968.. 15,710 10,892 10.367 3,528 1,290 1969.. 416,964 11,859 10.367 42,781 2,324 1976- 16,622 11,599 11,599 333 2,314 2,376 1970.. 14,487 11,072 10,732 629 1,935 851 16,661 11,599 11,599 296 2,390 2,376 1971 . . 512,167 10,206 10,132 5 276 585 1,100 16,941 11,599 Ml, 599 571 2,420 2,351 19726. 13,151 10,487 10,410 241 465 1,958 17,437 rll,598 Ml,598 936 2,578 2,325 19737 . 14,378 11.652 11,567 552 2,166 May. . .. 17,958 11,598 11 ,598 938 3,113 2,309 1974. . 15.883 11.652 11,652 1,852 2,374 June.... 818.277 11,598 11 ,598 1 ,165 8 3,198 82,316 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 June amounted to $2,435 million, reserve position in IMF, $3,357 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $18,555. 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 Seasonal factors are no longer calculated for capital transactions— excludes special military sales from exports and U.S. Govt, interest pay­ lines 14 through 49. ments from imports. 2 Adjusted to a balance of payments basis; among other adjustments, excludes military transactions and includes imports into the Virgin Note.—Data are from U.S. Dept, of Comm., Bureau of Economic Islands. Analysis, Survey of Current Business. A detailed description of items in 3 Differs from the definition of “net exports of goods and services” in this revised format of U.S. International Transactions will appear in a the national income and product (GNP) account. The GNP definition future issue of the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 GOLD RESERVES □ JULY 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—June............... 49,760 6,478 11,620 31,660 231 169 312 882 1,781 927 97 76 103 July................. 6,478 11,618 231 169 312 882 1,781 ! 927 97 76 103 Aug................. 6.478 11,599 231 169 312 882 1,781 927 97 76 103 Sept................. 49,750 6,478 11,599 31,675 231 169 312 882 1 ,781 927 97 76 103 Oct.................. 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Nov................ 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Dec................. 49,740 6,478 11,599 31,665 231 169 312 882 1,781 927 97 76 103 1976—Jan.................. 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Feb.................. 6,478 11,599 231 169 312 882 1 ,781 927 97 76 103 Mar................ 49,470 6,478 11,599 31,395 231 169 312 882 1,781 916 94 76 103 Apr................. 6,478 11,598 231 312 882 1,781 916 94 76 Mayfl............. 6,478 11,598 231 312 882 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—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 3,483 891 176 103 152 2,294 Mar................. 4,262 4,966 153 293 158 173 3,483 891 176 103 2,294 Apr................. 4,262 4,966 153 293 158 173 3,483 891 183 103 2 294 Mayp............. 4,262 4,966 153 158 3,483 891 214 103 2,294 United Bank End of Paki­ Portu­ Saudi South Spain Sweden Switzer­ Thai­ Turkey King­ Uru­ Vene­ for Intl. period stan gal Arabia Africa land land dom guay zuela Settle­ ments2 1970............................ 54 902 119 666 498 200 2,732 82 126 1,348 162 384 -282 1971............................ 55 921 108 410 498 200 2,909 82 130 777 148 391 310 1972............................ 60 1 ,021 117 681 541 217 3,158 89 136 801 133 425 218 1973............................ 67 1,163 129 802 602 244 3,513 99 151 887 148 472 235 1974............................ 67 1,175 129 771 602 244 3,513 99 151 888 148 472 250 1975—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 99 151 888 135 472 213 Feb.................. 67 1,170 129 749 602 244 3,513 99 151 888 135 472 205 Mar................. 67 1 ,170 129 3543 602 244 3,513 99 151 888 135 472 206 Apr................. 69 129 539 602 244 3,513 99 151 472 Mayp............. 69 129 538 244 3,513 99 151 472 245 i 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

JULY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A61 5. U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabili­ liabili­ foreigners ties to ties to non­ End IMF Liquid mone­ of Total arising Short­ liabili­ Short­ tary period from term Market­ Non­ Other ties term Market­ inti, gold liabili­ able market­ readily to com­ liabili­ able and re­ trans­ ties re­ U.S. able U.S. market­ mercial ties re­ U.S. gional actions1 Total ported Treas. Treas. able banks Total ported Treas. organi­ by bonds bonds liabili­ abroad 6 by bonds zations 8 banks and and ties5 banks and in notes3 notes4 in notes3,7 U.S. U.S. 1964.......................... 29,364 800 15,786 13,220 1,125 1,283 158 7,303 3,753 3,377 376 1,722 1965.......................... 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 3,743 528 906 131,019 1,011 14,895 12,539 860 583 913 9,936 4,272 3,744 528 905 19679....................... \ ( 3 3 5 5 , , 6 8 6 19 7 1 1 , , 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 3 2 4 7 9 9 0 0 8 8 1 1 , , 4 45 52 2 1 1, , 8 8 0 0 7 7 1 1 1 1 , , 0 2 8 09 5 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 0 7 5 55 58 8 6 6 9 7 1 7 1968 9....................... (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....................... 10/45,755 1,109 1015,975 11,054 346 10 3,070 1,505 23,638 4,464 3,939 525 659 \45,914 1,019 15,998 11,077 346 3,070 1,505 23,645 4,589 4,064 525 663 1970 Dec............... 1 (4 4 7 6 , , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3 , , 7 7 7 8 5 6 1 1 9 9 , , 3 3 3 3 3 3 2 3 9 0 5 6 3 3 , , 4 4 5 5 2 2 6 6 9 9 5 5 1 17 7 , , 1 1 6 3 9 7 4 4 , , 6 6 0 7 4 6 4 4 , , 0 0 3 2 9 9 6 5 4 6 7 5 8 8 4 4 6 4 (67,681 544 51,209 39,679 1,955 9,431 144 10,262 4,138 3,691 447 1,528 1971—Dec. 11......... 167,808 544 50,651 39,018 1,955 9,534 144 10,949 4,141 3,694 447 1,523 1972—Dec............... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1,627 1973—Dec.r.......... 92,490 66,861 1243,923 5,701 i215,564 1,673 17,694 5,932 5,502 430 2,003 1974—Dec. 9.......... /119,240 76,801 53,057 5,059 16,339 2,346 30,314 8,803 8,305 498 3,322 1119,152 76;808 53,064 5,059 16,339 2,346 30,079 8,943 8,445 498 3,322 1975—May............. 122,365 80,015 52,408 6,064 18,067 3,476 28,913 9,123 8,500 623 4,314 June............. 122,136 80,819 51,929 6,139 19,169 3,582 27,990 9,310 8,656 654 4,017 July.............. 123,054 80,068 50,393 6,180 19,616 3.879 29,035 9,337 8,627 710 4,614 Aug.............. 129,468 79,556 49,915 6,296 19,466 3.879 30,340 9,668 8,997 671 4,904 Sept.............. 123,335 78,128 48,080 6,472 19.666 3,910 30,318 9,901 9,200 701 4,988 Oct............... 123,477 80,047 49,602 6,644 19.666 4,135 28,467 10,021 9,283 738 4,942 Nov.............. 126,517 79,532 49,124 6,474 19,726 4,208 32,191 10,234 9,527 707 4,560 Dec.............. 126,273 80,286 49,170 6,599 19,976 4,541 29,579 10,765 10,036 729 5,643 1976—Jan............... 127,910 80,863 49,147 6,841 20.051 4,824 30,993 10,510 9,775 735 5,544 Feb............... 131,077 81,485 49,659 6,941 20.051 4,834 33,197 10,822 10,077 745 5,573 Mar.............. 129,135 81,973 49,632 7,422 20.051 4,868 30,527 10,891 10,115 776 5,744 Apr.*5........... 135,793 83,326 50,426 7,716 20.151 5,0113 3,537 35,241 10,757 780 5,689 Mayp, 137,966 84,462 51,491 7,752 20.151 5,068 36,513 11 ,317 10,555 762 5,674 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 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 nonment and the Inter-American and Asian Development Banks. negotiable, non-interest-bearing special U.S. notes held by other inter­ 9 Data on the 2 lines shown for this date differ because of changes national and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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 1972................................................................................................ 61,526 34,197 4,279 1,733 17,577 777 2,963 1973................................................................................................ 66,861 45,764 3,853 2,544 10,887 788 3,025 1Q7A 3 / \ 7 7 6 6 , , 8 8 0 0 1 8 4 44 4 , ,3 3 2 2 8 8 3 3 , ,6 6 6 6 2 2 4 4 , , 4 4 1 1 9 9 1 1 8 8, , 6 6 1 0 1 4 3 3, , 1 16 6 1 1 2 2 , , 6 6 2 2 7 7 1975—May.................................................................................... >•80,015 45,485 3,101 4,600 r20,464 3,448 2,917 June.................................................................................... *•80,819 45.483 3,008 4,723 >-20,536 3,800 3,269 July..................................................................................... r80,068 44,458 2,966 4,763 >•21,430 3,319 3,132 Aug..................................................................................... r79,556 44,210 2,929 4,937 >•21,114 3,392 2,794 Sept..................................................................................... >•78,128 43,481 3,011 4,840 >•20,889 3,145 2,762 Oct...................................................................................... r80,047 45,010 3,049 4,254 >•22,115 3,018 2,601 Nov..................................................................................... r79,532 44,744 3,218 4,056 >-21,949 2,951 2,614 Dec..................................................................................... r80,286 45,312 3,132 4,447 >"22,518 2,983 1,894 1976—Jan...................................................................................... >•80,863 45,406 3,420 3,552 >•23,775 2,724 1,986 Feb.r................................................................................. >■81,485 44,761 3,654 3,377 r24,941 2,731 2,021 Mar..................................................................................... 81,973 43,567 3,673 3,779 26,329 2,718 1,907 Apr.®................................................................................. 83,326 43,570 3,600 3,850 27,727 2,805 1,774 May®................................................................................. 84,461 43,237 3,590 3,827 28,891 3,140 1,777 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 SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations5 IMF Payable in dollars gold Deposits Payable invest­ U.S. End of period in ment Treasury Other 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.* cates3 197 2 60,696 60,200 8,290 5,603 31,850 14,457 496 1,412 86 202 326 799 197 3 69,074 68,477 11,310 6,882 31,886 18,399 597 1,955 101 83 296 1,474 1974—Dec. 7 /94,847 94,081 14,068 10,106 35,662 34,246 766 3,171 139 111 497 2,424 \94,760 93,994 14,064 10,010 35,662 34,258 766 3,171 139 111 497 2,424 1975—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.. 95,043 94,473 13,089 10,538 37,977 32,868 570 4,769 130 192 2,495 1,952 Apr.®, 101,943 101,176 14,244 10,285 39,349 37,297 767 5,519 140 193 2,739 2,447 May®, 104,071 103,339 13,840 10,155 40,179 39,165 732 5,508 91 185 2,876 2,356 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable n 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 cates3 cates3 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 J \9 9 1 1, , 6 5 7 89 6 1 1 3 3 , , 9 9 2 2 5 8 9 9 , , 9 8 9 9 5 9 3 3 5 5 , , 1 1 6 65 5 3 3 1 1 , , 8 82 3 2 4 7 7 6 66 6 5 5 3 3 , , 0 0 5 6 7 4 2 2 , , 9 95 5 1 1 4 4, , 1 2 6 5 7 7 3 3 4 4 , , 6 6 5 5 6 6 1 11 1 , , 1 0 6 6 3 6 1 1 2 2 7 7 1975—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.. 90,274 12,960 10,346 35,482 30,921 565 49,632 2,680 2,767 34,983 9,202 Apr.*5 96,424 14,104 10,092 36,610 34,855 763 50,426 2,782 2,319 36,115 9,209 May» 98,559 13,749 9,969 37,303 36,810 727 51,491 2,799 2,392 36,780 9,520 To other foreigners To banks Payable in dollars and other End of period Total Payable in Deposits U.S. Other Deposits U.S. Other foreign Treasury short­ Treasury short­ cur­ Total bills and term Total bills and term rencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab.6 cates cates 1973.......................... 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1Q7A__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—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.............. 40,642 29,961 7,246 2,318 217 20,181 10,115 3,034 5,261 282 1,538 565 Apr.P.......... 45,998 34,478 7,883 2,367 134 24,095 10,757 3,439 5,406 361 1,551 763 May2’........... 47,068 35,785 7,732 2,151 151 25,751 10,555 3,219 5,426 372 1,538 727 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. □ JULY 1976 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1974 1975 1976 Area and country Dec. i Aug. Sept. Oct. Nov. Dec. Feb. Apr.p Mayp Europe: Austria............................................ 607 607 -667 606 635 700 714 693 581 585 577 Belgium-Luxembourg................ 2,506 2,506 2,891 2,865 2,918 2,938 2,917 2,697 2,460 2,395 2,332 2,213 Denmark........................................ 369 369 308 311 327 361 332 375 434 678 681 649 Finland........................................... 266 266 406 391 367 380 391 309 313 334 350 403 France............................................. 4,287 4,287 5,493 5,950 6,608 7,172 7,733 7,499 6,480 6,210 4,856 4,529 Germany........................................ 9,420 9,429 5,277 4,797 5,047 4,841 4,407 3,873 4,518 4,245 5,880 5,256 Greece............................................. 248 248 307 361 331 313 284 263 340 261 289 299 Italy................................................. 2,617 2,617 1 ,056 1 ,426 1 ,398 1 ,071 1,112 1,052 1,044 1,338 1 ,504 1,418 Netherlands................................... 3,234 3,234 3,301 3,059 3,199 3,301 3,148 3,132 3,558 3,397 3,281 3,111 Norway........................................... 1,040 1,040 1,052 982 886 970 996 888 925 798 915 797 Portugal.......................................... 310 310 268 207 236 190 194 243 221 209 213 189 Spain............................................... 382 382 288 459 414 402 426 445 400 386 462 392 Sweden............................................ 1 ,138 1 ,138 2,203 2,195 2,252 2,241 2,286 2,266 2,312 2,287 2,352 2,437 Switzerland.................................... 9,986 10,137 8,282 8,048 8,205 8,029 8,556 8,611 8,648 8,854 8,965 9,129 Turkey............................................. 152 152 134 116 128 120 118 88 104 106 113 101 United Kingdom...................... 7,559 7,584 8,342 6,268 6,722 7,177 6,885 7,611 8,236 6,724 6,589 7,096 Yugoslavia..................................... 183 183 104 128 138 175 126 83 178 222 179 174 Other Western Europe2............ 4,073 4,073 2,291 2,443 2,428 2,370 2,970 2,313 2,116 2,144 2,002 2,250 U.S.S.R........................................... 82 82 50 39 42 38 40 45 43 38 34 45 Other Eastern Europe................ 206 206 160 272 153 128 200 160 201 159 161 153 Total....................................... 48,667 48,852 42,882 41,005 42,405 42,853 43,821 42,669 43,224 41,368 41,742 41,217 Canada................................................ 3,517 3,520 3,637 3,944 3,567 4,091 3,075 3,885 4,721 4,126 4,173 4,997 Latin America: Argentina....................................... 1 ,054 984 1,135 1,150 1,147 1 ,208 1.134 1,169 1,238 1,368 Bahamas......................................... 1,448 1,054 2,190 1,503 2,221 2,989 1,834 3,197 2,946 1 ,715 4,592 5,146 Brazil............................................... 1 ,034 1,034 921 1,016 1,083 1,075 1,227 1,191 1.135 1,320 1,421 1,192 Chile................................................. 276 276 280 293 270 266 317 248 248 273 317 367 Colombia........................................ 305 305 367 379 366 387 414 484 536 516 571 629 Mexico............................................ 1,770 1,770 1,824 1,872 1,956 2,183 2,078 1,899 2,048 2,004 2,133 2,218 Panama........................................... 488 510 649 752 765 840 1,097 1,145 953 779 961 1,098 Peru................................................. 272 272 208 245 247 249 244 219 223 235 219 230 Uruguay......................................... 147 165 160 208 168 175 172 185 204 242 216 216 Venezuela....................................... 3,413 3,413 4,242 4,247 3,531 3,188 3,290 2,711 2,571 2,574 2,742 2,739 Other Latin American re­ publics........................................ 1,316 1,316 1,371 1,469 1,399 1,368 1.500 1,431 1,455 1,640 1,714 1,671 Netherlands Antilles and Surinam..................................... 158 158 105 119 113 118 129 129 143 119 121 125 Other Latin America.................. 526 596 1,534 1,897 1,046 2,141 1.501 1,613 2,441 1 ,735 2,530 1,880 Total....................................... 12,038 11,754 14,907 14,983 14,305 16,131 14,950 15,665 16,037 14,322 18,774 18,880 Asia: China, People’s Rep. of (China Mainland)................... 50 50 55 94 104 93 123 263 224 101 120 139 China, Republic of (Taiwan).. 818 818 1,054 1,058 1,061 1,051 1,025 1,010 1,072 1,100 1,134 1,131 Hong Kong................................... 530 530 577 741 684 683 623 667 682 741 709 803 India................................................. 261 261 214 214 194 181 126 203 324 338 423 632 Indonesia........................................ 1,221 1,221 289 234 612 418 369 762 583 498 920 1,121 Israel................................................ 386 389 343 322 364 342 386 292 309 346 319 324 Japan............................................... 10,897 10,897 11,218 11,128 9,940 10,776 10,142 10,544 11,737 12,232 12,789 13,240 Korea............................................... 384 384 374 342 400 386 390 395 382 361 360 327 Philippines..................................... 747 747 669 604 580 593 698 601 616 605 525 578 Thailand......................................... 333 333 255 207 194 193 252 279 224 225 244 218 Middle East oil-exporting countries3.................................. 4,633 4,608 4,804 5,111 5,785 5,987 6,440 6,428 6,535 7,395 7,899 8,456 Other............................................... 813 820 919 970 925 885 869 970 933 1,290 1,017 980 Total....................................... 21,073 21,082 20,770 21,025 21,589 21,443 23,621 25,233 26,458 27,949 Africa : Egypt............................................... 103 103 295 188 185 255 342 177 180 314 231 197 South Africa.................................. 130 130 147 254 177 108 168 218 133 186 177 202 Oil-exporting countries4............ 2,814 2,814 2,872 2,649 2,447 2,372 2,238 2,134 2,208 1,919 2,256 2,423 Other............................................... 504 504 552 560 575 643 622 563 609 680 598 651 Total....................................... 3,551 3,551 3,866 3,651 3,385 3,377 3,370 3,091 3,131 3,099 3,262 3,472 Other countries: Australia........................................ 2,742 2,742 3,114 2,912 2,766 2,712 2,013 2,046 2,070 2,001 1,931 1,950 All other........................................ 89 89 75 78 80 87 114 143 131 125 84 93 Total....................................... 2,831 2,831 3,189 2,989 2,846 2,800 2,127 2,190 2,201 2,126 2,015 2,043 Total foreign countries.................. 91,676 91,589 89,252 87,598 87,352 90,842 88,786 89,915 92,933 90,274 96,424 98,559 International and regional: Internationals.............................. 2,900 2,900 4,500 4,621 4,303 4,217 5,069 4,629 4,189 4,459 5,269 5,247 Latin American regional........... 202 202 215 186 190 193 187 219 261 181 141 156 Other regional6............................ 69 69 94 90 61 37 85 70 128 108 107 Total....................................... 3,171 3,171 4,804 4,901 4,583 4,471 5,293 4,933 4,520 4,768 5,519 5,512 Grand total........................... 94,847 94,760 94,055 92,499 91,935 95,313 94,078 94,848 97,453 95,043 101,943 104,071 For notes see opposite page. 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JULY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A65 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY-Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data7 1973 1974 1975 1973 1974 1975 Area and country Area and country Dec. Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: 19 10 7 17 6 Cambodia........................................ 2 4 4 4 8 11 21 20 33 Jordan.............................................. 6 6 22 30 39 Ireland, Rep. of................................... 62 53 29 29 Laos.................................................. 3 3 3 5 2 Lebanon........................................... 62 68 126 180 Other Latin American republics: Malaysia.......................................... 58 40 63 92 77 Bolivia................................................... 68 102 96 93 110 Pakistan.......... ......................... 105 108 91 118 74 Costa Rica............................................ 86 88 118 120 124 Singapore........................................ 141 165 245 215 Dominican Republic.......................... 118 137 128 214 169 Sri Lanka (Ceylon)....................... 13 13 14 13 13 Ecuador................................................ 92 90 122 157 Vietnam............................................ 88 98 126 70 62 El Salvador.......................................... 90 129 129 144 171 Guatemala............................................ 156 245 219 255 260 Haiti....................................................... 21 28 35 34 38 Honduras.............................................. 56 71 88 92 99 Other Africa: Jamaica................................................. 39 52 69 62 41 Ethiopia (incl. Eritrea)................. 79 118 95 76 60 Nicaragua............................................. 99 119 127 125 133 Ghana.............................................. 20 22 18 13 Paraguay............................................... 29 40 46 38 43 Kenya............................................... 23 20 31 32 19 Trinidad and Tobago......................... 17 21 107 31 Liberia.............................................. 42 29 39 33 53 Southern Rhodesia........................ 2 1 2 3 1 Other Latin America: Sudan............................................... 3 2 4 14 12 Bermuda................................................ 242 201 116 100 Tanzania ..................... 12 12 11 21 British West Indies............................. 109 354 449 627 Tunisia.............................................. 7 17 19 23 29 Uganda............................................ 6 11 13 38 22 Other Asia:.............................................. Zambia............................................. 22 66 22 18 78 Afghanistan.......................................... 22 11 18 19 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). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Total Latin Middle Other other tions ers many dom Europe America East2 Asia3 coun­ tries 1972................................. 1,018 580 439 93 259 87 165 63 260 136 33 10 1973................................. 1,462 761 700 310 291 100 159 66 470 1 32 83 16 1974................................. 1,285 822 464 124 261 79 146 43 227 115 94 8 20 1975—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..................... 2,062 157 1,904 1,091 442 371 256 78 393 147 1,310 16 40 Apr.®.................. 2,062 172 1,888 1,076 385 427 259 87 416 99 1,335 14 25 May®.................. 2,064 135 1,927 1,079 381 466 256 87 403 104 1,379 16 26 1 Excludes central banks, which are included with “Official institutions.” Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial 2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, States). 3 Until Dec. 1974 includes Middle East oil-exporting countries. 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A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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.p Apr.p Europe: Belgium-Luxembourg....................... 10 14 14 14 14 14 14 13 13 13 13 13 14 Germany.............................................. 9 209 209 209 210 217 216 216 215 212 238 247 228 251 251 252 252 278 275 275 275 276 276 275 276 276 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 1,455 713 412 412 408 406 404 399 400 393 393 416 416 422 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: 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 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 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 Loans to— Accept­ Foreign End of period Total Collec­ ances govt, se­ tions made Deposits curities, Total Official out­ for acct. Other Total with for­ coml. Other Total institu­ Banks1 Others2 stand­ of for­ eigners and fi­ tions ing eigners nance paper 1972................................ 15,676 14,830 5,671 163 2,970 2,538 3,276 3,226 2,657 846 441 223 182 1973................................ 20,723 20,061 7,660 284 4,538 2,838 4,307 4,160 3,935 662 428 119 115 1974................................ 39,030 37,835 11,301 381 7,342 3,579 5,637 11,237 9,659 1,195 668 289 238 1975—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..................... 53,390 52,069 13,551 763 7,971 4,817 5,367 11 ,134 22,018 1,321 794 145 382 Apr.*7.................. 55,662 54,213 14,547 769 8,823 4,955 5,325 11,297 23,044 1 ,449 920 156 373 Mayp.................. 56,387 54,969 15,870 1,051 9,545 5,275 5,380 11,315 22,403 1,419 878 141 399 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

JULY 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. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May** Europe: 21 28 20 19 32 15 20 23 22 39 25 Belgium-Luxembourg................................. 384 598 536 555 463 352 401 417 430 398 427 46 60 46 50 54 49 55 55 55 59 57 122 143 130 127 133 128 132 120 128 105 109 673 741 906 1,329 1,195 1,403 1,336 1,451 1,240 1,233 1,109 589 448 443 496 659 427 486 426 474 452 448 64 50 54 56 91 49 55 52 53 63 62 Italy................................................................ 345 336 363 438 418 370 369 402 360 406 492 Netherlands.................................................. 348 338 313 264 285 300 316 267 269 290 267 119 106 102 102 92 71 66 63 66 71 76 20 22 18 15 19 16 20 20 21 18 32 196 214 245 256 261 249 274 262 231 241 321 180 185 182 152 182 167 124 111 121 105 116 335 290 214 274 314 232 245 278 340 400 355 15 43 56 54 121 86 59 82 73 68 90 United Kingdom........................................ 2,570 4,067 3,724 3,792 3,858 4,586 4,506 4,707 4,429 5,295 4,987 22 40 37 34 55 38 37 49 64 50 47 Other Western Europe............................... 22 62 23 22 25 27 26 29 29 27 41 U.S.S.R.......................................................... 46 79 106 144 165 103 101 84 85 63 70 Other Eastern Europe................................ 131 110 110 96 103 114 124 159 109 107 109 6,245 7,960 7,630 8,275 8,526 8,781 8,752 9,056 8,599 9,491 9,239 2,776 2,340 2,626 2,728 2,742 2,812 3,015 2,978 2,917 3,253 3,364 Latin America: 720 1,115 1,219 1,343 1,229 1,203 1,246 1,338 1,290 1,374 1,342 3,398 6,627 6,432 7,250 6,856 7,513 7,981 9,830 10,303 10,267 9,814 1,415 1,505 1,491 1,536 1,785 2,200 2,132 2,173 2,318 2,351 2,414 Chile............................................................... 290 435 405 351 381 360 312 343 324 349 352 713 667 684 662 649 689 651 586 545 539 518 1,972 2,762 2,705 2,623 2,565 2,800 2,776 3,079 3,034 3,236 3,452 503 578 721 903 886 1,032 1,262 1,167 1,108 785 989 518 646 624 599 565 588 624 634 597 638 621 Uruguay......................................................... 63 73 54 52 56 51 68 62 46 39 33 704 956 1,109 1,051 980 1,086 1,001 925 1,040 1,077 1,280 Other Latin American republics.............. 866 1,005 1,014 1,041 969 980 1,045 1,061 986 1,052 1,153 Netherlands Antilles and Surinam.......... 62 54 57 59 46 49 53 43 33 32 32 1,142 2,091 1,684 2,202 2,555 1,816 3,059 3,253 2,708 3,718 3,993 12,366 18,516 18,199 19,673 19,522 20,417 22,224 24,495 24,331 25,456 25,993 Asia: China, People’s Rep. of (China Mainland) 4 13 5 11 11 22 10 17 22 18 9 China, Republic of (Taiwan).................... 500 503 606 601 681 735 725 729 775 793 868 223 190 231 257 258 258 234 225 229 200 228 14 38 21 17 16 21 19 26 25 26 34 157 88 91 86 92 105 129 131 162 162 171 255 358 398 389 387 491 419 365 307 314 285 12,514 10,294 10,400 10,253 10,429 10,760 10,109 9,870 10,202 10,114 10,003 955 1,502 1,515 1,555 1,505 1,556 1,605 1,715 1,600 1,713 1,677 372 410 340 338 347 377 434 507 510 520 559 458 494 474 501 499 495 535 516 537 533 491 Middle East oil-exporting countries1___ 330 493 624 446 506 524 525 600 646 605 742 Other.............................................................. 441 572 651 702 665 683 734 705 731 632 785 16,222 14,956 15,357 15,156 15,396 16,025 15,477 15,405 15,747 15,631 15,210 Africa: 111 141 125 127 130 104 106 101 103 110 106 South Africa................................................. 329 492 504 513 540 546 547 546 575 631 672 Oil-exporting countries2............................. 115 134 190 207 215 231 213 230 226 210 211 300 347 343 380 409 351 349 330 270 301 336 855 1,114 1,162 1,227 1,294 1,231 1,215 1,207 1,174 1,252 1,325 Other countries: 466 466 509 532 554 535 503 492 521 498 547 99 88 80 105 91 73 87 113 98 79 67 Total....................................................... 565 554 589 638 645 608 589 605 619 577 615 Total foreign countries................................... 39,030 45,438 45,562 47,696 48,126 49,875 51,272 53,747 53,387 55,660 56,386 3 1 * 1 1 3 2 3 2 1 Grand total.......................................... 39,030 45,441 45,564 47,697 48,127 49,876 51,275 53,749 53,390 55,662 56,387 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. □ JULY 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 197 2 5,063 4,588 844 430 3,314 435 40 853 406 2,020 353 918 514 197 3 5,996 5,446 1 ,160 591 ~ 694 478 72 1 ,272 490 2,116 251 1 ,331 536 197 4 7,183 6,494 1,333 931 230 609 80 1,907 501 2,613 258 384 977 542 1975—May.... 7,906 7,215 1,283 1 ,198 ,733 610 81 2,325 491 2,864 254 242 1 ,047 683 June.... 7,995 7,184 1,274 1 ,226 ,683 719 92 2,303 461 2,880 264 241 1,150 696 July.... 8,308 7,425 1 ,292 1,319 ,815 792 90 2,344 471 3,037 270 241 1 ,223 723 Aug. . .. 8,265 7,394 1 ,276 1 ,336 ,782 787 85 2,395 438 3,003 259 237 1 ,204 728 Sep........ 8,539 7,637 1 ,348 1 ,364 ,926 809 93 2,426 508 3,132 265 237 1 ,195 775 Oct........ 8,860 7,907 1,266 1 ,516 ,125 840 114 2,534 595 3,168 292 222 1 ,214 835 Nov.. . . 9,070 8,050 1 ,303 1,547 ,201 903 118 2,529 569 ,281 293 249 1 ,218 931 Dec........ 9,485 8,435 1,380 1,692 ,362 934 116 2,675 555 3,448 296 220 1,276 1,016 1976—Ja...........n 9,412 8,349 1,290 1,636 5,423 945 118 2,677 552 3,382 289 205 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.. . . 9,800 8,641 1 ,316 1 ,740 5,584 1 ,011 149 2,702 570 3,605 292 296 1 ,195 1 ,140 Apr.®... 9,980 8,783 1 ,337 1 ,842 5,603 1,081 116 2,721 558 3,785 307 196 1 ,279 1 ,133 May®... 10,238 8,990 1,379 1,918 5,693 1 ,133 115 2,824 607 3,965 307 196 1 ,263 1 ,075 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 bonds3 Foreign stocks3 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 ( —) sates ( —) 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 1,971 201 1,770 1 ,540 230 20,360 15,212 5,148 2,386 8,687 -6,300 1 ,538 1,719 -182 1976—Jan.-May 1,021 -174 1,210 1,153 58 11,719 9,313 2,406 1 ,937 5,199 -3,262 881 986 -105 1975—Ma y 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 509 261 248 242 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.®... 458 -78 536 481 55 2,524 1,972 552 360 1,282 -922 193 246 -52 Apr.®.... -508 -805 297 294 4 2,260 1,689 570 341 758 -417 182 143 40 May........ 11 7 19 37 -18 1,634 1,496 138 372 811 -439 198 240 -42 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Middle East Africa official institutions of foreign countries. 2 Includes State and local govt, securities, and securities of U.S. Govt, 1975® 1,773 170 agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments 1976—Jan.-May® 987 110 abroad. 3 Includes transactions of international and regional organizations. 1975—May 175 20 4 Includes transactions (in millions of dollars) of oil-exporting countries June 106 in Middle East and Africa as shown in the tabulation in the opposite July 1 20 column: Aug. 80 10 Sept. 150 50 Oct. 150 50 Nov. 51 Dec. 176 10 1976—Jan. 115 20 Feb. 116 10 Mar. 282 45 Apr.® 270 15 May® 207 20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A69 15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Pur­ Net pur­ Ger­ Nether­ Switzer­ United Total Total Middle Other Period chases Sales chases or France many lands land King­ Europe Canada America East1 Asia2 Other3 sales (—) dom Latin 1973....................... 12,767 9,978 2,790 439 2 339 686 366 2,104 99 4 577 5 1974....................... 7,634 7,095 540 203 39 330 36 -377 281 -6 -33 288 10 1975....................... 15,066 10,600 4,465 262 250 359 897 569 2,464 356 -7 1,470 140 39 1976—Jan.-May?’ 9,215 7,196 2,019 108 140 -32 210 266 743 156 146 848 101 14 1975—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.p........ 1,690 1,279 410 10 10 31 -21 49 84 23 25 254 22 -1 May^........ 1 ,207 1 ,092 115 3 -44 4 23 19 -9 30 7 67 16 4 1 Comprises Middle East oil-exporting countries as follows: Bahrain, 2 Until 1975 includes Middle East oil-exporting countries. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 3 Includes international and regional organizations. (Trucial States). 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger­ Nether­Switzer­ United Total Total Middle Other Total Other Intl. and Period Total France many lands land Kingdom Europe Canada Latin East1 Asia2 Africa countries regional America 1973....................... 1 ,948 201 -33 -19 307 275 1 ,204 49 44 588 * 10 52 1974....................... 966 96 33 183 96 373 719 45 43 632 * 10 -483 1975....................... 681 82 -11 -16 116 80 116 127 30 1,437 -42 5 1 -993 1976—Jan.-May ^ 411 9 -47 -7 49 -180 -66 45 10 500 -83 10 -20 16 1975—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 * * -162 296 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—Jan............. 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.. .... -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 MayP........ 22 3 -2 * 23 19 -2 -3 -3 37 6 * * -13 1 See note 1 to Table 15. Note.—Statistics include State and local govt, securities, and securities 2 See note 2 to Table 15. of U.S. Govt, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance di­ rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re- coun­ rope ica rica tries period (due to (due from g onal tries foreigners) foreigners) 1973................. -818 139 -957 -141 -569 -120 -168 3 37 290 255 1974................. -2,033 -60 -1,973 -546 -1,508 -93 144 7 22 333 231 1975................. -6,515 -2,225 -4,290 -47 -3,178 -306 -619 15 -154 1974—Mar.............................. 383 225 1976— 354 241 Jan.-Mayp 3,367 -288 -3,079 -263 -2,507 -109 -220 24 -4 298 178 293 194 1975—May. . . -184 31 -215 39 -167 * -88 -2 2 June... -655 * -655 -22 -478 * -30 2 -127 1975—Mar.............................. 349 209 July___ -699 -475 -224 -26 -109 -25 -69 * 4 380 233 Aug---- -362 -21 -341 24 -204 -164 1 1 2 343 258 Sept___ -80 18 -98 -19 -129 25 24 -1 1 365 319 Oct....... -508 5 -513 48 -460 -48 -56 -3 6 Nov___ -714 -62 -652 -27 -584 6 3 -2 -48 1976—Mar.?........................... 411 333 Dec.. . . -1,139 -839 -299 80 -310 9 -78 -1 1 1976—Jan , , , -333 94 -426 -109 -304 -9 -4 -3 2 Note.—Data represent the money credit balances and Feb___ -1,201 -139 -1,063 33 -973 5 -110 -4 -14 money debit balances appearing on the books of reporting Mar.. .. 975 9 -984 -168 -727 -72 -14 -5 2 brokers and dealers in the United States, in accounts of Apr.p. . -377 -94 -283 * -281 6 -15 4 2 foreigners with them, and in their accounts carried by MayP. . -481 -158 -323 -19 -222 -39 -77 32 3 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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............ 1?1 866 5,091 1,886 3,205 111,974 19,177 56,368 2,693 33,736 4,802 ............ 151,905 6,90019744,4—64Dec2,435 138,712 27,559 60,283 4,077 46,793 6,294 1975—Apr.r........ 156,911 5,841 3,061 2,780 145,147 29,715 60,307 4,354 50,771 5,924 Mayr........ 158,407 7,737 4,898 2,838 144,457 28,229 60,345 4,495 51,388 6,213 Juner........ 164,117 5,542 2,344 3,198 152,123 31,628 63,757 4,843 51,896 6,451 Julyr......... 162,511 5,926 2,795 3,131 149,946 31,055 62,468 4,798 51,626 6,639 Aug.r........ 167,672 9,151 6,098 3,054 151,897 32,062 62,486 4,901 52,449 6,623 Sept.r........ 167,886 6,575 3,268 3,307 154,905 32,216 65,065 4,863 52,761 6,407 Oct. r......... 171,465 7,924 4,896 3,027 156,989 33,571 64,273 5,237 53,909 6,553 Nov.r........ 173,736 8,705 5,777 2,928 158,179 34,464 64,408 5,516 53,790 6,852 Dec.r........ 176,493 6,726 3,665 3,061 163,414 34,592 68,403 5,879 54,540 6,352 1976—Jan.7-......... 178,925 7,995 5,007 2,988 164,682 36,723 66,592 6,121 55,246 6,248 Feb.r........ 180.779 8,937 5,903 3,033 165,411 34,770 69,122 6,332 55,187 6,431 Mar............ 185,957 6,737 3,460 3,277 172,680 38,435 72,244 6,661 55,341 6,540 Apr.*5......... 188,574 9,096 6,091 3,005 172,932 39,116 70,508 7,213 56,095 6,546 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—Apr.r........ 109,222 5,476 3,018 2,458 101,034 21,444 45,175 3,600 30,816 2,711 Mayr........ 112,670 7,327 4,834 2,493 102,389 21,885 45,405 3,686 31,413 2,954 Juner........ 118,436 5,115 2,282 2,833 110,294 25,183 49,149 3,950 32,012 3,026 Julyr......... 118,558 5,519 2,744 2,776 109,544 25,001 48,590 3,930 32,023 3,495 Aug.r........ 122,781 8,827 6,044 2,783 110,654 25,758 48,071 4,148 32,676 3,299 Sept.r........ 124,373 6,238 3,211 3,027 115,178 26,055 51,493 4,042 33,589 2,957 Oct.r......... 127,355 7,506 4,822 2,684 116,673 27,367 50,062 4,363 34,851 3,176 Nov.r........ 130,233 8,350 5,725 2,625 118,603 28,329 50,992 4,646 34,637 3,280 Dec.r........ 132,901 6,392 3,628 2,764 123,512 28,490 54,764 4,951 35,307 2,997 1976—Jan.r......... 134,366 7,659 4,967 2,692 123,618 29,827 52,671 5,229 35,891 3,090 Feb.r........ 135 918 8,622 5,859 2,763 124,070 28,399 54,497 5,364 35,809 3,226 Mar........... 137 811 6,458 3.413 3,046 128,246 30,156 56,039 5,719 36,331 3,107 Apr.p........ 140,591 8,801 6; 022 2,778 128,719 31,122 54,496 6,158 36,943 3,071 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—Apr............ ^9,248 2,017 1 ,126 891 65,330 13,314 33,079 919 18,018 1,902 May........... 68,707 2,535 1,689 845 64,269 12,491 32,443 920 18,415 1,904 June........... 70,751 1,834 641 1,192 66,868 13,765 34,634 948 17,522 2,049 July............ 70,382 1 ,904 807 1 ,097 66,277 14,414 33,431 923 17,509 2,202 Aug............ 72,455 3,795 2,698 1,097 66,428 15,213 32,998 948 17,268 2,232 Sept............ 72,120 2,042 1,076 967 67,923 15,249 34,759 825 17,091 2,155 Oct............. 72,742 2,681 1,699 982 67,631 16,555 32,806 830 17,440 2,430 Nov............ 73,924 3,112 2,137 975 68,494 17,549 33,189 852 16,904 2,319 Dec............ 74,883 2,375 1,449 926 70,354 17,557 35,102 881 16,814 2,153 1976—Jan............. 73,437 2,253 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............ 74,668 2,112 1,237 875 70,300 17,363 36,723 927 15,287 2,256 Apr.**........ 74,055 2,325 1 ,497 827 69,505 18,344 34,879 934 15,348 2,226 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—Apr............ 48,797 1,885 1,109 776 45,923 10,995 23,990 721 10,217 989 May........... 48,506 2,404 1,671 733 45,180 10,656 23,320 698 10,506 922 June........... 51,365 1,669 623 1,045 48,713 12,054 25,761 721 10,178 983 July............ 51,665 1,742 793 949 48,787 12,664 25,143 713 10,267 1,136 Aug............ 53,456 3,661 2,681 980 48,763 13,315 24,540 740 10,168 1,032 Sept............ 54,256 1,910 1,054 856 51,369 13,488 27,008 596 10,277 977 Oct............. 54,192 2,552 1,687 865 50,494 14,654 24,691 592 10,557 1 ,146 Nov............ 56,221 2,988 2,123 865 52,145 15,555 25,600 638 10,353 1,087 Dec............ 57,361 2,257 1,445 812 54,137 15,645 27,669 648 10,175 967 1976—Jan............. 55,067 2,141 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............ 55,115 2,010 1 ,234 775 52,147 14,450 27,526 691 9,482 958 Apr.p........ 54,516 2,205 1,484 721 51,419 15,374 25,820 633 9,593 891 IN BAHAMAS AND CAYMANS1 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—Apr............ 35,666 2,588 1,006 1,582 32,358 4,320 12,229 2,419 13,390 720 May........... 38,198 4,126 2,468 1,658 33,214 4,270 13,181 2,531 13,232 858 June........... 39,646 2,634 987 1,647 36,181 5,831 13,747 2,772 13,831 831 July............ 39,614 2,787 1,134 1,653 35,676 5,015 14,065 2,747 13,849 1,150 Aug............ 41,624 4,117 2,580 1,536 36,555 5,222 14,117 2,891 14,324 953 Sept............ 41,601 3,189 1,289 1,900 37,479 5,220 14,604 3,020 14,635 933 Oct............. 44,166 3,989 2,295 1,694 39,225 5,604 15,414 3,308 14,899 952 Nov.. 44,471 4,544 2,929 1,615 38,973 5,321 15,134 3,434 15,084 954 Dec............ 45,203 3,229 1,477 1,752 41,040 5,411 16,298 3,576 15,756 933 1976—Jan............. 48,694 4,488 2,614 1,874 43,104 6,296 17,195 3,677 15,935 1,102 Feb............ 50,276 4,765 2,750 2,014 44,396 6,257 17,556 3,908 16,675 1,115 Mar............ 51,075 3,482 1,425 2,056 46,636 6,745 18,205 4,251 17,434 957 Apr.*7........ 54,398 5,695 3,835 1,860 47,536 6,437 18,503 4,680 17,917 1,166 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1976 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 121,866 5,610 1,642 3,968 111,615 18,213 65,389 10,330 17,683 4,641 . 1973—Dec. .. .Total, all currencies 151,905 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20,189 6,933 . 1974—Dec. 156,913 14,999 8,766 6,233 135,773 30,123 62,301 23,267 20,082 6,141 .1975—Apr.1 158,407 16,920 10,426 6,494 135,176 27,855 64,714 22,263 20,344 6,311 .............May1 164,117 18,697 12,283 6,414 138,813 31,693 64,996 21,169 20,955 6,607 .............June1 162,511 17,771 11,609 6,162 138,477 31,673 65,968 20,387 20,449 6,263 .............Julyr 167,673 17,335 10,173 7,162 143,944 31,926 70,216 21,114 20,688 6,395 .............Aug. 167,886 18,502 11,026 7,476 143,182 31.567 70,853 19,780 20,981 6,202 .............Sept. 171,465 19,154 11,282 7,872 146,085 33,216 70,579 20,642 21,648 6,227 ...............Oct. 173,736 19,858 11,201 8,657 147,067 33,892 70,623 21,200 21,352 6,811 .............Nov. 176,493 20,204 12,149 8,056 149,854 34,127 72,182 22,773 20,771 6,435 .............Dec.1 178,925 22,570 12,691 9,879 150,439 35.568 72,347 21,710 20,814 5,916 .1976--Jan.r 180,779 24,474 14,091 10,383 150,300 34,916 70,863 23,189 21,331 6,005 Feb.'' 185,957 24,612 15,288 9,325 155,481 37,502 72,657 22,493 22,830 5,863 Mar. 188,574 26,705 14,543 12,161 156,084 38,508 72,092 21,857 23,627 5,785 Apr.p 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 . 1973—Dec. .Payable in U.S. dollars 107,890 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12,072 3,951 . 1974—Dec. 111,364 14,340 8,580 5,760 93,599 21,547 41,000 19,909 11,143 3,425 .1975—Apr.1 115,281 16,316 10,249 6,067 95,526 21,585 43,865 18,928 11,148 3,439 .............May1 120,648 18,077 12,087 5,990 98,969 25,072 44,208 17,968 11,720 3,602 .............June1 120,763 17,157 11,402 5,755 100,348 25,422 45,903 17,393 11,630 3,258 .............Julyr 125,328 16,689 9,992 6,698 105,216 25,646 49,427 18,080 12,064 3,423 .............Aug. 126,850 17,871 10,823 7,048 105,765 25,607 50,726 16,777 12,654 3,213 .............Sept. 129,569 18,477 11,078 7,399 107,701 27,118 49,930 17,476 13,177 3,390 .............Oct.r 133,291 19,159 11,008 8,151 110,239 28,030 50,475 18,407 13,326 3,893 .............Nov. 135,907 19,486 11,923 7,563 112,915 28,233 51,503 19,982 13,197 3,507 .............Dec.7 138,558 21,930 12,519 9,411 113,313 29,464 51,876 18,906 13,068 3,315 .1976--Jan.r 139,900 23,733 13,846 9,887 112,802 28,513 50,498 20,317 13,476 3,365 . Feb. ' 142,095 23,822 15,016 8,806 115,292 29,829 51,625 19,518 14,318 2,982 .Mar. 145,560 25,961 14,286 H ,674 116,539 31,273 51,135 19,080 15,051 3,060 Apr.*5 IN UNITED KINGDOM 61,732 2,431 136 2,295 57.311 3,944 34,979 8,140 10,248 1,990 .1973—Dec. .. .Total, all currencies 69,804 3,978 510 3.468 63,409 4,762 32,040 15,258 11,349 2,418 .1974—Dec. 69,248 4,596 1 ,342 3,254 62,625 5,394 28,666 17,812 10,753 2,026 .1975--Apr. 68,708 4,772 1,337 3,435 61,772 5,325 28,957 16,726 10,764 2,164 . May 70,751 4,668 1,451 3,217 63,857 7,030 30,030 15,524 11.274 2,226 .June 70,382 4,679 1,718 2.961 63,501 6,475 30,636 15,312 11,077 2,203 .July 72,457 5,251 1,904 3,348 65,012 6,260 32,097 15,617 11,038 2,194 Aug. 72,120 5,112 1,833 3.279 64,962 6,396 33,130 14,486 10,950 2,046 . Sept. 72,742 4,905 1,766 3,139 65,699 6,746 32,334 14,909 11,711 2,138 .Oct. 73,924 5,497 2,028 3.468 66,267 6.470 33,340 15,180 11.275 2,161 .Nov. 74,883 5,646 2,122 3,523 67,261 6,494 32,985 16,553 11,229 1,976 .Dec. 73,437 5,645 1 ,749 3,896 65,914 6,444 33,534 15,053 10,882 1 ,878 .1976—Jan. 72,963 5,491 1,914 3,577 65,544 6,648 31,444 16,463 10,989 1 ,928 .............Feb. 74,668 5,382 1 ,549 3,833 67.217 7,099 32,485 15,905 11,729 2,069 .............Mar. 74,055 6,105 1 ,764 4,340 65,977 6,898 31,307 15,521 12,250 1 ,974 .............Apr v 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 .1973—Dec. .Payable in U.S. dollars 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 .1974—Dec. 49,177 4,297 1 ,313 2,984 43,758 3,£ 17,997 15,158 6,717 1 ,122 .1975—Apr. 49,479 4,487 1,314 3,173 43,784 4,220 18.640 14,135 6,789 1,208 .............May 51.848 4,369 1,412 2,957 46.312 5,962 20,039 13,083 7,228 1,167 .............June 51,826 4,421 1,684 2,737 46.217 5.478 20,775 12,915 7,049 1 ,188 ............July 54,017 4,975 1,873 3,103 47,912 5,288 22,087 13,249 7,287 1,129 ...........Aug. 54,683 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 .............Sept. 54,478 4,696 1,735 2.961 48,660 5,708 22,452 12,500 7,999 1,123 .............Oct. 56,696 5,288 2,009 3.279 50,185 5.478 23.641 12,999 8,066 1,223 .............Nov. 57,820 5,415 2,083 3,332 51,466 5,442 23,349 14,498 8,176 940 .............Dec. 56,039 5,446 1 ,732 3,714 49,676 5,422 23,369 13,070 7,816 917 .1976—Jan. 55.848 5,311 1,901 3,410 49,606 5.471 21,911 14,326 7,899 931 .............Feb. 56,266 5,179 1,509 3,670 50,126 5,969 21,973 13,710 8,474 961 .............Mar. 255,750 5,880 1 ,723 4,156 48,992 5,771 20,732 13,450 9,040 877 .............Apr.*> IN BAHAMAS AND CAYMANS * 23,771 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 .1973—Dec. .. .Total, all currencies 31,733 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 .1974—Dec. 35,667 7,420 5,083 2,337 27,536 8,756 13,694 2,769 2,318 711 . 1975—Apr. 38,198 9,090 6,766 2,324 28,309 6,872 16,018 2,977 2,441 799 . ...........May 39,646 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 .............June 39,614 9,991 7,407 2,584 28,933 8,401 15,539 2,500 2,492 690 .............July 41,624 8,800 5,715 3,085 31,913 9,128 17,317 2,860 2,607 911 .............Aug. 41,601 9,928 6,490 3,439 30,861 8,918 16,834 2,540 812 .............Sept. 44,166 10,833 7,056 32,327 9,725 17,296 2,577 961 .............Oct. 44,471 11,082 6,710 32,239 10,553 15,972 2,483 1,150 .............Nov. 45,203 11,146 7,628 32,950 10,569 16,726 2,348 1,106 .............Dec. 48,694 13,110 5,022 34,475 11,169 17,603 3,416 2,287 1,109 . 1976—Jan.r 50,276 15,016 9,197 5,820 34,159 10,231 18,081 3,407 2,440 1,100 .............Feb. 51,075 15,469 10,915 4,554 34,931 10,850 18,332 2,998 2,751 676 .............Mar. 54,398 16,821 9,904 6,917 36,604 11,903 18,872 2,970 2,858 972 ............Apr.* For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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 End of End of United period Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 1972. 325 50,934 215,530 1973. 251 52,070 217,068 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—June., 373 61,406 16.803 July.. 369 60,999 16.803 1975—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 June . 349 63,212 16,633 Feb 4,346 3,233 341 447 325 1 ,480 1 ,333 Mar.*5___ 4,396 3.341 393 434 228 1 ,683 1 ,322 Apr.'\ .. . 4,925 3,851 412 424 238 2,050 1 ,354 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 1 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 Dec.—..................... J I 3 3, ,1 41 1 7 9 2 2 , ,6 9 3 4 5 8 4 4 6 8 9 4 5 6 , , 7 3 2 0 1 2 5 5 , ,6 0 4 7 3 4 4 3 1 93 0 2 2 3 6 7 7 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 compa­ because of changes in reporting coverage. Figures on rable with those shown for the following date. the first line are comparable with those shown for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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.*1 Dec. Mar. June Sept. Dec.p Europe: Austria......................................................... 20 26 22 18 14 26 15 13 15 16 Belgium-Luxembourg.............................. 519 480 340 336 294 128 137 132 131 134 Denmark.................................................... 24 23 14 8 9 42 35 22 24 39 Finland....................................................... 16 16 12 14 14 120 77 87 114 91 France......................................................... 202 151 137 150 148 430 328 287 311 299 Germany..................................................... 313 352 293 276 149 339 276 346 319 363 Greece......................................................... 39 25 27 21 19 65 59 69 56 33 Italy............................................................. 125 109 110 156 171 397 309 300 380 381 Netherlands................................................ 119 122 143 154 113 148 157 135 139 165 Norway....................................................... 9 9 8 13 20 36 35 41 48 40 Portugal...................................................... 19 13 13 13 4 81 42 32 39 44 Spain........................................................... 56 54 59 74 81 369 359 324 315 408 Sweden........................................................ 38 32 30 47 24 89 66 74 100 62 Switzerland................................................ 138 155 168 167 129 136 86 113 220 241 Turkey......................................................... 8 12 14 22 25 26 33 28 31 28 United Kingdom...................................... 1,258 1,161 1,033 924 913 1,853 1,657 1,557 1 ,785 1 ,892 Yugoslavia.................................................. 40 52 45 60 76 22 33 32 24 36 Other Western Europe............................ 5 5 4 5 6 21 23 16 19 14 Eastern Europe.......................................... 70 54 49 38 31 142 114 154 170 219 Total.................................................... 3,018 2,851 2,523 2,496 2,241 4,469 3,840 3,763 4,241 4,504 Canada............................................................ 306 258 281 296 286 1,618 1,855 1,948 2,101 2,013 Latin America: Argentina.................................................... 36 31 30 28 31 67 73 63 52 58 Bahamas..................................................... 291 307 277 210 186 594 615 631 686 660 Brazil........................................................... 118 121 127 116 96 463 378 349 385 399 Chile............................................................ 22 23 15 13 14 106 69 57 41 38 Colombia.................................................... 14 11 11 14 14 51 51 47 47 47 Cuba............................................................ * * * * * 1 1 1 1 1 Mexico........................................................ 63 12 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. 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A74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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 i n c r a 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 , . 2 3 7 12 4 1 19 6 1 3 7 71 4 5 5 7 7 7 49 5 1 1 8 8 4 7 6 6 4 0 7 65 03 8 - 1 15 3 6 3 4 3 0 78 6 8 8 7 6 10 3 9 8 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.;)........................ 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 1973.......................... 5.43 5.27 10.45 9.40 8.27 7.96 8.92 6.40 10.18 4.07 4.94 5.09 1974......................... 7.63 7.69 12.99 11.36 9.85 9.48 12.87 6.06 8.76 6.90 8.21 6.67 1975......................... 7.36 7.34 10.57 10.16 10.13 7.23 7.89 3.51 4.23 4.41 3.65 6.25 1975—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 10.16 7.53 3.13 3.68 3.60 3.98 4.50 8.99 9.04 10.94 10.69 7.63 3.13 4.23 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 $50,655 million and $51,185 million, respectively, on Apr. 30, 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

JULY 1976 o CENTRAL BANK AND EXCHANGE RATES A75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of June 30, 1976 Rate as of June 30, 1976 Country Country Per Month Per Month cent effective cent effective Argentina........................ 18.0 Feb. 1972 Italy..................... 12.0 Mar. 1976 Austria............................ 4.0 June 1976 Japan................... 6.5 Oct. 1975 Belgium........................... 7.0 Mar. 1976 Mexico................ 4.5 June 1942 Brazil................................ 28.0 May 1976 Netherlands.... 5.0 June 1976 Canada............................ 9.5 Mar. 1976 Norway............... 5.0 Oct. 1975 Denmark......................... 8.5 Mar. 1976 Sweden ............... 6.0 June 1976 France............................. 8.0 Sept. 1975 Switzerland......... 2.0 June 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*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—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.......... 126.87 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 $.4535 2.5517 102.02 16.487 21.272 39.035 11.080 180.79 .11676 .33444 June.......... 122.75 5.4136 2.5220 102.71 16.314 21.109 38.797 10.980 176.40 .11780 .33424 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—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 June.......... 39.148 8.0000 36.524 98.09 18.020 3.2145 114.94 1.4724 22.475 40.484 176.40 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman Stephen S. Gardner, Vice Chairman Henry C. Wallich 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’C onnell, Counsel to the John M. D enkler, Staff Director Chairman Stephen H. Axilrod, Staff Director Robert J. Lawrence, Deputy Staff Joseph R. Coyne, Assistant to the Board A rthur L. Broida, Deputy Staff Director Director Kenneth A. G uenther, Assistant to the Board M urray Altm ann, 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 Norm and R. V. Bernard, Special Assistant to W illiam W. Layton, Director of Equal Board the Board Employment Opportunity Donald J. W inn, Special Assistant to the B renton 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. K alchbrenner, Adviser James B. Eckert, Associate Adviser John D. Hawke, Jr., General Counsel f John J. Mingo, Associate Adviser Baldwin B. T uttle, Deputy General Eleanor J. Stockw ell, Associate Adviser DIVISION OF FEDERAL RESERVE Counsel Helm ut F. W endel, Associate Adviser BANK EXAMINATIONS AND BUDGETS Robert E. M annion, Assistant General James R. W etzel, Associate Adviser Counsel Jared J. Enzler, Assistant Adviser W illiam H. W allace, Director A llen L. Raiken, Assistant General Counsel Robert M. Fisher, Assistant Adviser A lbert R. Ham ilton, Associate Director Gary M. W elsh, Assistant General Counsel J. C ortland G. Peret, Assistant Adviser Clyde H. Farnsw orth, Jr., Assistant Director Charles R. M cNeill, 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 f Ralph C. B ryant, Director James R. Kudlinski, Director Frederic Solomon, Assistant to the John E. Reynolds, Acting Director W alter A. A lthausen, Assistant Director Board and Director Robert F. Gemmill, Adviser Brian M. Carey, Assistant Director Janet O. H art, Deputy Director Reed J. Irvine, Adviser Jerauld C. Kluckman, Assistant Director tHELEN B. Junz, Adviser H arry A. G uinter, Assistant Director 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 C harles L. Hampton, Director Bruce M. Beardsley, Associate Director Theodore E. Allison, Secretary Uyless D. Black, Assistant Director * Joseph P. Garbarini, Assistant Secretary G lenn L. Cummins, Assistant Director G riffith L. Garwood, Assistant Secretary Robert J. Zemel, Assistant Director tOn leave of absence. DIVISION OF PERSONNEL DIVISION OF BANKING SUPERVISION AND REGULATION Keith D. Engstrom, Director C harles W. W ood, Assistant Director Brenton C. Leavitt, Director Ralph H. Gelder, Associate Director OFFICE OF THE CONTROLLER John E. Ryan, Associate Director W illiam W. W iles, Associate Director John K akalec, Controller Peter E. Barn a, Assistant Director Tyler E. W illiams, Jr., Assistant Controller Frederick R. D ahl, Assistant Director Jack M. Egertson, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John N. Lyon, Assistant Director John T. M cClintock, Assistant Director W alter W. Kreimann, Director Thomas E. Mead, Assistant Director D onald E. Anderson, Assistant Director Thomas A. Sidman, Assistant Director John D. Smith, 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. F[enry C. Wallich Philip E. Coldwell Monroe Kimbrel Willis J. Winn David M. Lilly A rthur L. Broida, Secretary Lyle E. Gramley, Economist M urray A ltm ann, Deputy Secretary (Domestic Business) Normand R. V. Bernard, Assistant H arry B randt, Associate Economist Secretary Richard G. Davis, Associate Economist Thomas J. O’C onnell, General Counsel W illiam J. Hocter, Associate Economist Edward G. Guy, Deputy General Counsel M ichael W. Keran, Associate Economist Baldwin B. T uttle, 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 A lan 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 Ellm ore C. Patterson, second federal reserve district, President W illiam F. M urray, seventh federal reserve district, Vice President Richard D. H ill, first federal Edwin S. Jones, eighth federal reserve district reserve district James F. Bodine, third federal Donald R. G rangaard, 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. M errigan, sixth G ilbert F. Bradley, tw elfth federal reserve district FEDERAL RESERVE DISTRICT H erbert V. Prochnow, Secretary W illiam 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 Thomas M. Timlen Buffalo ................. 14240 Rupert Warren John T. Keane PHILADELPHIA 19105 John R. Coleman David P. Eastburn John W. Eckman Mark H. Willes CLEVELAND* 44101 Horace A. Shepard Willis J. Winn Robert E. Kirby Walter H. MacDonald Cincinnati ............ 45201 Lawrence H. Rogers, II Robert E. Showalter Pittsburgh ............ 15230 G. Jackson Tankersley Robert D. Duggan RICHMOND* ............23261 E. Angus Powell Robert P. Black E. Craig Wall, Sr. George C. Rankin Baltimore .................21203 James G. Harlow Jimmie R. Monhollon Charlotte .................28230 Charles W. DeBell Stuart P. Fishburne Culpeper Communications Center .................22701 Albert D. Tinkelenberg ATLANTA .............. 30303 H. G. Pattillo Monroe Kimbrel Clifford M. Kirtland, Jr. Kyle K. Fossum Birmingham ......... 35202 Harold B. Blach, Jr. Hiram J. Honea Jacksonville ......... 32203 Egbert R. Beall Edward C. Rainey Miami ................... 33152 Castle W. Jordan W. M. Davis Nashville .............. 37203 James W. Long Jeffrey J. Wells New Orleans ........ 70161 Edwin J. Caplan George C. Guynn CHICAGO* ............ 60690 Peter B. Clark Robert P. Mayo Robert H. Strotz Daniel M. Doyle Detroit ................... 48231 Jordan B. Tatter William C. Conrad ST. LOUIS .............. 63166 Edward J. Schnuck Lawrence K. Roos William B. Walton Eugene A. Leonard Little Rock ........... 72203 Ronald W. Bailey John F. Breen Louisville ............ 40201 William H. Stroube Donald L. Henry Memphis .............. 38101 Robert E. Healy L. Terry Britt MINNEAPOLIS 55480 James P. McFarland Bruce K. MacLaury Stephen F. Keating Clement A. Van Nice Helena ................... 59601 James C. Garlington John D. Johnson KANSAS CITY 64198 Robert T, Person Roger Guffey Harold W. Andersen John T. Boysen Denver ................. 80217 Maurice B. Mitchell J. David Hamilton Oklahoma City 73125 James G. Harlow, Jr. William G. Evans Omaha ................. 68102 Durward B. Varner Robert D. Hamilton DALLAS ................. 75222 John Lawrence Ernest T. Baughman Charles T. Beaird T. W. Plant El Paso ................. 79999 J. Luther Davis Fredric W. Reed Houston ................ 77001 Thomas J. Barlow James L. Cauthen San Antonio ......... 78295 Margaret Scarbrough Wilson Carl H. Moore SAN FRANCISCO ....94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi John B. Williams Los Angeles ......... 90051 Joseph R. Vaughan Richard C. Dunn Portland ................ 97208 Loran L. Stewart Angelo S. Carella Salt Lake City .... 84110 Sam Bennion A. Grant Holman Seattle ................... 98124 Lloyd E. Cooney James J. Curran * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 Federal Reserve Board Publications Available from Publications Services, Division of Ad­ request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed­ of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) The Federal Reserve System— Purposes and 24 pp. $.35. Sec. 15. International Finance. 1962. Functions. 1974. 125 pp. $1.00each; 10or more 92 pp. $.65. Sec. 16 (New). Consumer Credit. to one address, $.75 each. 1965. 103 pp. $.65. The Federal Funds M arket. 1959. Ill pp. $1.00 Annual Report each; 10 or more to one address, $.85 each. Federal Reserve B ulletin. 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 H istorical 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 M arket 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 M arket. 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— W eekly Government Securities M arket: 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 M arket Policies and Operating Proce­ The Federal Reserve A ct, 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 Determ ination Con­ ernors, as of Dec. 31, 1975. $2.50. ference, October 30-31, 1970, Washington, D.C. Supplement to Banking and M onetary 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 M oderate 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 A vailability 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 M onetary 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 R ecently Offered Corporate Bonds. 5/73. Studies and papers on economic and financial subjects Capacity U tilization in M ajor M aterials 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 Instalm ent Loans. 9/73. (Limited supply of mimeographed copies of full New Series for Large M anufacturing Corpora­ text available upon request for single copies) tions. 10/73. U.S. Energy Supplies and Uses, Staff Economic H ousehold-Sector Economic Accounts, by David Study by Clayton Gehman. 12/73. F. Seiders. Jan. 1975. 84 pp. Capacity U tilization for Major M aterials: Re­ The Performance of Individual Bank Holding vised M easures. 4/74. Companies, by Arthur G. Fraas. Aug. 1975. Numerical Specifications of Financial Variables 27 pp. and Their Role in M onetary Policy. 5/74. The Growth of M ultibank Holding Companies: Inflation and Stagnation in M ajor Foreign In­ 1956-73, by Gregory E. Boczar. Apr. 1976. 27 dustrial Countries. 10/74. pp. The Structure of M argin 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— C urrently Pub­ Banking and M onetary Statistics, 1974. Selected lished and A lternative M ethods, 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 M arkets. 10/75. Printed in Full in the Bulletin MINNIE: A S m a ll V ersion of th e Staff Economic Studies shown in list below. MIT-PENN-SSRC Econometric M odel, Staff Economic Study by Douglas Battenberg, Jared J. Enzler and Arthur M. Havenner. 11/75. An Assessment of Bank Holding Companies, Staff REPRINTS Economic Study by Robert J. Lawrence and (Except for Staff Papers, Staff Economic Studies, and Samuel H. Talley. 1/76. some leading articles, most of the articles reprinted do Industrial Electric Power Use. 1/76. not exceed 12 pages.) Revision of M oney Stock M easures. 2/76. Survey of Finance Companies, 1975. 3/76. Seasonal Factors A ffecting Bank Reserves. 2/58. Changing Patterns in U.S. International Trans­ M easures of Member Bank Reserves. 7/63. actions. 4/76. Research on Banking Structure and Perform­ Revised Series for Member Bank Deposits and ance, Staff Economic Study by Tynan Smith. Aggregate Reserves. 4/76. 4/66. Bank Holding Company Financial Developm ents A Revised Index of M anufacturing Capacity, in 1975. 4/76. Staff Economic Study by Frank de Leeuw with Changes in Bank Lending Practices, 1975. 4/76. Frank E. Hopkins and Michael D. Sherman. 11/66. Industrial Production— 1976 Revision. 6/76. U.S. International Transactions: Trends in Federal Reserve Operations in Payment M echa­ 1960-67. 4/68. nisms: A Summary. 6/76. M easures of Security Credit. 12/70. Changes in Time and Savings Deposits at Com­ Revised M easures of M anufacturing Capacity mercial Banks, October 1975-January 1976. U tilization. 10/71. 7/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin □ July 1976 Index to Statistical Tables References are to pages A-2 through A-75 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 9, 25, 27 Demand deposits: Agricultural loans of commercial banks, 16, 18 Adjusted, commercial banks, 11, 13, 17 Assets and liabilities (See also Foreigners): Banks, by classes, 14, 17, 20, 21 Banks, by classes, 14, 16, 17, 18, 30 Ownership by individuals, partnerships, and cor­ Federal Reserve Banks, 10 porations, 24 Nonfinancial corporations, current, 41 Subject to reserve requirements, 13 Automobiles: Turnover, 1 1 Consumer instalment credit, 45, 46, 47 Deposits (See also specific types of deposits): Production index, 48, 49 Accumulated at commercial banks for payment of personal loans, 24 BANK credit proxy, 13 Banks, by classes, 14, 17, 20, 21, 30 Bankers balances, 16, 17, 20 Federal Reserve Banks, 10, 72 (See also Foreigners) Subject to reserve requirements, 13 Banks for cooperatives, 37 Discount rates at Federal Reserve Banks (See Interest Bonds (See also U.S. Govt, securities): rates) New issues, 37, 38, 39 Discounts and advances by Reserve Banks (See Loans) Yields and prices, 28, 29 Dividends, corporate, 40, 41 Branch banks: Assets, foreign branches of U.S. banks, 70 EMPLOYMENT, 50, 52 Liabilities of U.S. banks to their foreign branches and foreign branches of U.S. banks, 22, 71 FARM mortgage loans, 42 Brokerage balances, 69 Federal agency obligations, 9, 10, 11 Business expenditures on new plant and equipment, 41 Federal finance: Business indexes, 50 Receipts and outlays, 32, 33 Business loans (See Commercial and industrial loans) Treasury operating balance, 32 Federal funds,.5, 16, 18, 21, 27 CAPACITY utilization, 50 Federal home loan banks, 37 Capital accounts: Federal Home Loan Mortgage Corporation, 42, 43 Banks, by classes, 14, 17, 22 Federal Housing Administration, 42, 43, 44, 45 Federal Reserve Banks, 10 Federal intermediate credit banks, 37 Central banks, 60, 75 Federal land banks, 37 Certificates of deposit, 22 Federal National Mortgage Assn., 37, 42, 43 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 13, 16 Condition statement, 10 Weekly reporting banks, 18, 23 U.S. Govt, securities held, 2, 10, 11, 34, 35 Commercial banks: Federal Reserve credit, 2, 4, 10, 11 Assets and liabilities, 13, 14, 16, 17, 18 Federal Reserve notes, 10 Consumer loans held, by type, 45, 46, 47 Federally sponsored credit agencies, 37 Deposits at, for payment of personal loans, 24 Finance companies: Loans sold outright, 25 Loans, 18, 45, 46, 47 Number, by classes, 14 Paper, 25, 27 Real estate mortgages held, by type of holder and Financial institutions, loans to, 16, 18 property, 42—44 Float, 2 Commercial paper, 23, 25, 27 Flow of funds, 56, 57 Condition statements (See Assets and liabilities) Foreign: Construction, 50, 51 Currency operations, 10 Consumer instalment credit, 45, 46, 47 Deposits in U.S. banks, 3, 10, 17, 21, 72 Consumer price indexes, 50, 53 Exchange rates, 75 Consumption expenditures, 54, 55 Trade, 59 Corporations: Foreigners: Profits, taxes, and dividends, 41 Claims on, 66, 67, 68, 72, 73, 74 Sales, revenue, profits, and dividends of large Liabilities to, 22, 61, 62, 64, 65, 72, 73, 74 manufacturing corporations, 40 Security issues, 38, 39 GOLD: Security yields and prices, 28, 29 Certificates, 10 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 60 Currency and coin, 3, 16 Stock, 2, 59 Currency in circulation, 3, 12 Government National Mortgage Assn., 42 Customer credit, stock market, 29, 30 Gross national product, 54, 55 DEBITS to deposit accounts, 11 HOUSING permits, 50 Debt (See specific types of debt or securities) Housing starts, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 References are to pages A-2 through A-75 although the prefix “A” is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 45 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property mortgaged, 42-44 Insured commercial banks, 14, 16, 17, 24 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20 Reserve requirements, member banks, 7 Interest rates: Reserves: Bond and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 45 Residential mortgage loans, 43, 44, 45 Prime rate, commercial banks, 26 Retail credit, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69, 73 SALES, revenue, profits, and dividends of large manu­ Inventories, 54 facturing corporations, 40 Investment companies, issues and assets, 39 Saving: Investments (See also specific types of investments): Flow of funds series, 56, 57 Banks, by classes, 14, 16, 19, 30 National income series, 54, 55 Commercial banks, 13 Savings and loan assns., 31, 35, 42, 44 Federal Reserve Banks, 10, 11 Savings deposits (See Time deposits) Life insurance companies, 31 Savings institutions, principal assets, 30, 31 Savings and loan assns., 31 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 37 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 37, 38, 39 Loans (See also specific types of loans): Yields and prices, 28, 29 Banks, by classes, 14, 16, 18, 30 Special Drawing Rights, 2, 10, 58, 59 Commercial banks, 13, 14, 16, 18, 23, 25, 26 State and local govts.: Federal Reserve Banks, 2, 4, 6, 10, 11 Deposits, 17, 20 Insurance companies, 31, 44 Holdings of U.S. Govt, securities, 34, 35 Insured or guaranteed by U.S., 42, 43, 44, 45 New security issues, 37, 38 Savings and loan assns., 31 Ownership of securities of, 16, 19, 30 Yields and prices of securities, 28, 29 MANUFACTURERS: State member banks, 15, 24 Capacity utilization, 50 Stock market credit, 29, 30 Production index, 49, 50 Stocks (See also Securities): Margin requirements, 8 New issues, 38, 39 Member banks: Yields and prices, 28, 29 Assets and liabilities, by classes, 14, 16, 17 TAX receipts, Federal, 33 Borrowings at Federal Reserve Banks, 4, 10 Time deposits, 8, 13, 14, 17, 21, 22 Number, by classes, 14 Treasury currency, Treasury cash, 2, 3 Reserve position, basic, 5 Treasury deposits, 3, 10, 32 Reserve requirements, 7 Treasury operating balance, 32 Reserves and related items, 2, 4, 13 Mining, production index, 49 UNEMPLOYMENT, 52 Mobile home shipments, 51 U.S. balance of payments, 58 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 12 Commercial bank holdings, 17, 20 Mortgages (See Real estate loans and Residential Member bank holdings, 13 mortgage loans) Treasury deposits at Reserve Banks, 3, 10, 32 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 20, 30, 34, 42, 44 Bank holdings, 14, 16, 19, 30, 34, 35 Dealer transactions, positions, and financing, 36 NATIONAL banks, 14, 24 Federal Reserve Bank holdings, 2, 10, 11, 34, 35 National defense expenditures, 33 Foreign and international holdings, 10, 66, 68, 72 National income, 54, 55 International transactions, 66, 68 Nonmember banks, 15, 16, 17, 24 New issues, gross proceeds, 38 Open market transactions, 9 OPEN market transactions, 9 Outstanding, by type of security, 34, 35 Ownership, 34, 35 PAYROLLS, manufacturing index, 50 Yields and prices, 28, 29 Personal income, 55 Utilities, production index, 49 Prices: Consumer and wholesale commodity, 50, 53 VETERANS Administration, 43, 44 Security, 29 Prime rate, commercial banks, 26 WEEKLY reporting banks, 18-22 Production, 48, 49, 50 Profits, corporate, 40, 41 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin □ July 1976 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch ♦ Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation and Statistical Releases SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rP Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the partic­ n.e.c. Not elsewhere classified ular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1976 A-82 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis