Federal Reserve Bulletin, 1976-09

S E P T E M B E R 1976 FEDERAL RESERVE BULLETIN Recent Shifts in Corporate Financing Patterns Treasury and Federal Reserve Foreign Exchange Operations 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 N U M B E R 9 □ V O L U M E 62 □ SE PT E M B E R 1976 C O N T E N T S 733 Recent Shifts in Al Financial and Business Statistics Corporate Financing Patterns Al Contents 741 Staff Economic Studies: Summary A2 U.S. Statistics A58 International Statistics 743 Treasury and Federal Reserve Foreign Exchange Operations A76 Board of Governors and Staff 765 Statements to Congress A78 Open Market Committee and Staff; Federal Advisory Council 774 Record of Policy Actions of the Federal Open Market Committee A79 Federal Reserve Banks and Branches 787 Law Department A80 Federal Reserve Board Publications 811 Announcements A82 Index to Statistical Tables 814 Industrial Production A84 Map of Federal Reserve System Inside Back Cover: Guide to Tabular Presentation and Statistical Releases P U B L IC A T IO N S C O M M IT T E E Lyle E. Gramley Joseph R. Coyne John M. Denkler Stephen H. Axilrod Janet O. Hart John D. Hawke, Jr. James L. Kichline, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Elizabeth B. Sette. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Shifts in *3; ■-' Corporate Financing Patterns This article was prepared in the Capital Mar­ of 1975, and in this recovery outlays have risen kets Section of the Division of Research and only moderately relative to their expansion in Statistics. previous recoveries. As conditions in financial markets eased dur­ During most of the decade that preceded the ing the recession and early stages of the recov­ recession of 1974-75, the gap between cor­ ery, businesses issued large volumes of long­ porate expenditures and internal funds widened, term debt for the purpose of repaying bank loans and businesses had to depend more heavily on and replenishing liquid asset holdings. Cor­ external sources of funds to finance their invest­ porations also took advantage of the improve­ ment outlays. In the process, nonfinancial cor­ ment in the stock market to issue a record porations greatly increased their debt financing amount of new equity—which, along with the relative to their equity capital, and they bor­ rapid rise in undistributed profits, further rowed more heavily in short-term markets than strengthened their capital base and financing in long-term markets—particularly in 1973 and flexibility. 1974. On balance, the liquidity position of nonfi­ These trends in corporate financing practices nancial corporations improved appreciably as a occurred against a backdrop of prolonged, and result of significant balance sheet restructuring almost uninterrupted, expansion in aggregate during the six quarters ending in mid-1976. For economic activity and of accelerating increases many firms, measures of liquidity have risen to, in the general price level. In this environment, or above, their pre-recession levels. But at the many corporate enterprises paid little attention same time a number of firms and industries have to their rising debt/equity ratios or to the reduc­ encountered difficulties in attaining such im­ tions in their liquidity positions. Increased vul­ provements. This seems to be particularly true nerability to changes in the level of economic for the smaller, lower-rated corporations. Re­ activity and to changes in credit market condi­ cently, however, the borrowing ability of tions went largely unchecked until the recent lesser-known firms has improved, and their ef­ recession, when the glaring financial imbalances forts to restructure their balance sheets may and increased risk exposure of many business continue as a major determinant of financing enterprises became clear. activity through the remainder of 1976. Cor­ Since the beginning of 1975, there has been porations that have made satisfactory progress a marked reversal in corporate patterns of ex­ in restoring liquidity, on the other hand, may ternal financing. The turnaround began in the relate long-term financing operations more di­ aftermath of cutbacks in investment programs rectly to planned investment outlays over the and of large-scale inventory liquidation stimu­ coming quarters than has been the case in the lated by the economic downturn of 1974. The recent past. retrenchment in capital expenditure plans con­ tinued through most of 1975, enabling corpora­ tions to reduce their dependence on external IN T E R N A L F U N D S financing sources. This process has been aided A N D C A P IT A L O U T L A Y S by the strong growth in corporate profits and the corresponding expansion in flows of internal The flow of internal funds to nonfinancial cor­ funds thus far in the recovery. Indeed, corporate porations has improved remarkably since its cash flow exceeded capital outlays through most recession low in 1974. After having increased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 Federal Reserve Bulletin □ September 1976 Profit m argins significantly. Less than 11 per cent of the earn­ of m anufacturing corporations ings of nonfinancial corporations in the first half Perce of this year were attributable to inventory prof­ its, compared with 15 per cent a year earlier and 39 per cent in 1974. 10 After-tax corporate profits adjusted to exclude profits attributable to understatement of inven­ 8 tory cost and depreciation based on historical rather than replacement prices—that is, profits 6 with adjustments for inventory valuation and for capital consumption—rose from a recession low 4 of $9.6 billion to $41.1 billion in the second quarter. With dividend payments trailing the rise in earnings, much of this increase in after-tax 2 profits resulted in larger retained earnings. 0 Internal funds generation has been boosted 1974 1975 76 not only by the improvement in profits but also Profit margins are the ratio of profits before tax to sales. by the steady growth of depreciation—the major Data are from Federal Trade Commission Quarterly Financial Report, and are not seasonally adjusted. component of corporate cash flow—and by more than 60 per cent between the third quarter of 1974 and the end of 1975, retained earnings Profits of nonfinancial corporations plus capital consumption allowances increased ________________Billions of dollars a further 5 per cent in the first half of 1976, according to preliminary estimates. The unusually strong growth in internal funds reflects, to a large extent, sizable gains in cor­ porate profits generated both by an improvement in sales and by rising profit margins. During the early stages of an economic expansion, profit margins—the ratio of profits to sales— typically improve as labor productivity increases and overhead costs are spread over a larger volume of output. For manufacturing firms, which account for more than half of all nonfi­ nancial corporate profits, sales expanded ap­ proximately 25 per cent between the first quarter of 1975 and the second quarter of 1976, and concurrently the relative share of revenues going to pre-tax profits rose more than 50 per cent— from 6.2 to 9.5 per cent in the second quarter of 1976. As a result of the sharp rise in sales and profit margins over the past year, profits before taxes of nonfinancial corporations rose to a record $124 billion in the second quarter, 43 per cent Retained earnings are profits after tax with inventory valua­ above the same period a year earlier. Moreover, tion and capital consumption adjustments and less dividends the proportion of such funds available for pur­ plus foreign branch profits. Flow of funds quarterly data, seasonally adjusted annual rates. Data for 1976 Q2 are pre­ poses other than inventory replacement has risen liminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Shifts in Corporate Financing Patterns 735 TA B LE 1 Flow of funds for nonfinancial corporations In billions of dollars Category 1972 1973 1974 1975 1976 HI SOURCES OF FUNDS Total ....................................... 139.9 161.7 163.2 140.0 176.2 Internal funds ................................ 80.8 83.8 77.6 103.4 120.2 Retained earnings1 ................... 18.5 15.7 -2.4 7.7 15.8 Capital consumption allowances 62.2 68.1 80.0 95.7 104.4 External financing ......................... 58.8 72.9 81.9 37.4 48.7 Other sources Accrued tax liabilities ............ -.1 2.3 1.0 -3.2 6.2 NOTES: Miscellaneous liabilities ......... .4 2.7 2.7 2.4 1.1 includes foreign branch profits and adjustments for inventory valu­ USES OF FUNDS ation and capital consumption. 2 Includes corporate purchases of Total ....................................... 123.4 145.6 151.4 125.8 163.6 Capital outlays .............................. 101.0 124.4 134.6 95.9 133.7 mineral rights from U.S. Govern­ Fixed investment2 ................... 93.4 111.1 122.6 112.3 120.0 ment, plant and equipment expend­ Inventories .................................. 7.6 13.3 12.0 -16.4 13.7 itures, and investment in multifam­ ily structures. Increases in liquid assets ........... 9.0 6.7 2.1 17.8 11.8 3 Includes increases in consumer credit and miscellaneous financial Net trade credit ............................ 7.4 5.3 4.5 2.6 4.9 assets. Other uses3 ..................................... 6.0 9.2 10.2 9.5 13.2 Note.—Flow of funds data. Half-year data are at seasonally ad­ justed annual rates. Data for 1976 Discrepancy ........................... 16.5 16.1 11.8 14.2 12.6 HI are preliminary. growth in other nonmarket sources of funds. cent of the total for the manufacturing sector— Deferrals of corporate tax payments have been accounted for close to 25 per cent of the growth an important item in the latter category. Esti­ in manufacturing profits during the year ending mated business tax payments based on previous in the second quarter. Other industries showing year’s income make actual payments lag accru­ large year-over-year gains included textiles, als when profits are expanding. The volume of building materials, railroads, and apparel man­ accrued, but as yet unpaid, tax liabilities may ufacturers. In contrast, certain industries have be substantial for some firms in periods when not performed so well during the recent recov­ their profits have been rising rapidly. It is esti­ ery. Airline profits, in particular, were de­ mated that in the first half of 1976, accrual of pressed through the first quarter, although pre­ tax liabilities exceeded corporate tax payments liminary second-quarter figures suggest consid­ by $6.2 billion. erable improvement in this sector. Most nonfinancial industries shared in the For the nonfinancial corporate sector as a 1975-76 profit recovery, but the degree of im­ whole, the strengthening in internal funds flow provement varied considerably among groups. provided ample funds to finance a major part Generally, corporations registering the most of investment expenditures over the last year noticeable increases were those whose earnings and a half. Following the marked decline in had been most severely eroded by the recession. economic activity in late 1974, manufacturing Substantial gains have been recorded by the and nonmanufacturing businesses began per­ cyclically sensitive motor vehicle industry, sistently to revise their capital spending plans which swung from a recession deficit of $2.3 downward. Real outlays for fixed investment by billion in early 1975 to before-tax profits of nonfinancial corporations fell sharply through more than $6.5 billion at a seasonally adjusted the third quarter of 1975, and for the year these annual rate in early 1976. Profits of auto manu­ outlays were down almost 16 per cent from 1974 facturers and suppliers—normally around 12 per levels. Indeed, for the first time since 1961, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 Federal Reserve Bulletin □ September 1976 Nonfinancial corporations the first quarter was concentrated largely in the Billions of dollars manufacturing industries, among producers of nondurable goods. Nonmanufacturing firms ac­ counted for a greater share of the second-quarter Capital expenditures increase. In the nonmanufacturing industries, public utilities steadily increased their outlays from a rate of $19 billion in the second quarter of last year to just under $22 billion in the first two quarters of 1976. In contrast, the airlines and railroads—which were subjected to both higher fuel costs and reduced freight and pas­ senger traffic last year—continuously reduced their spending from mid-1975 through the first quarter, and despite a substantial rise in the second quarter their outlays remained below early 1975 rates. Much of the volatility in total capital outlays Gross internal funds in recent quarters has been associated with swings in business inventory investment. Cor- Capital outlays of nonfinancial corporations Billions 120 ioo 80 Capital expenditures include business fixed investment plus changes in inventories. Flow of funds quarterly data, seasonally adjusted annual rates. Data for 1976 Q2 are preliminary. 60 current-dollar outlays also declined on an annual 20 basis, though by a more modest 4 per cent. Although some recovery in capital spending + began late last year, business spending for fixed 0 investment has lagged behind other sectors in the recent expansion and has been much weaker 20 than is typical of postwar recoveries. In the first half of 1976, expenditures by nonfinancial corporations for new plant and equipment were at a seasonally adjusted annual Business fixed investment includes plant and equipment rate of $113 billion, approximately 5 per cent expenditures, investment in multiunit residential construction, above the first-half pace of a year earlier. Ex­ and purchases of mineral rights from the U.S. Government. Flow of funds quarterly data, seasonally adjusted annual pansion in plant and equipment expenditures in rates. Data for 1976 Q2 are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Shifts in Corporate Financing Patterns 737 porations, faced with very heavy inventories and E X T E R N A L F IN A N C IN G weakening consumer demand in late 1974, With a marked decline in business investment made strenuous efforts to trim stocks by reduc­ expenditures and substantial increases in inter­ ing orders, cutting production, and shaving nal flows of funds in 1975, nonfinancial cor­ prices. The largest reductions in inventory in­ porations raised $37 billion from external credit vestment occurred in the first half of 1975. and equity sources during the year, less than Although many producers, particularly in dura­ half the $82 billion raised in 1974. While capital ble goods industries, continued to reduce their investment in the first half of 1976 proceeded stocks through the end of 1975, the bulk of at a higher rate than last year, the continued inventory liquidation had come to a halt in the improvement in corporate profits provided suf­ second quarter of last year. ficient internal funds to finance close to 90 per The shift from liquidation to moderate inven­ cent of these outlays. Consequently, net external tory accumulation accounted for about 85 per financing requirements rose only moderately in cent of the rise in total capital expenditures of the first 6 months and remained well below the nonfinancial corporations between the second unusually high levels of 1973 and 1974. quarter of last year and the first quarter of this Although total external financing was down, year. By the end of the first quarter, inventories net new issues of long-term debt by nonfinancial in many nondurable goods industries had corporations reached a record $30 billion during reached levels sufficient to meet existing sales 1975, and the volume has continued at near­ volume. In line with this, preliminary data for record levels in more recent quarters. Early in the second quarter indicate a downward adjust­ 1976 interest rates on long-term bonds declined ment of nondurable production, as firms have sharply to their lowest levels in 2 years, and sought to keep stocks from building up exces­ this prompted a surge in public bond offerings sively during a period of weakness in retail during the first quarter. Prime-rated bor­ sales. On the other hand, inventory accumula­ rowers—those rated Aa or higher by Moody’s tion in the durable goods sector has been con­ —accounted for around 60 per cent of these new siderably slower than in previous postwar re­ offerings, compared with about 50 per cent of coveries, and further increases in the rate of accumulation are likely in these industries. Outlays for fixed investment are expected to pick up as the year progresses. According to TABLE 2 the most recent Department of Commerce sur­ External financing of nonfinancial vey taken in July, firms were anticipating a 4.1 corporations per cent increase in plant and equipment outlays In billions of dollars in the third quarter, and for 1976 as a whole such outlays are projected to rise 7.4 per cent Type 1972 1973 1974 1975 1976 above 1975 levels. Major leading indicators of HI business spending already have shown im­ Total ........... 58.8 72.9 81.9 37.4 48.7 provement. New orders for nondefense capital goods increased appreciably throughout the first Equity ............ 10.9 7.9 4.1 9.9 12.9 7 months. More recently, contract awards for Bonds1 ........... 12.7 11.0 21.3 29.8 26.4 Mortgages __ 17.8 18.5 14.2 9.7 9.2 commercial and industrial construction, and capital appropriations of large manufacturing Bank loans ... 13.2 29.7 30.8 -12.4 -12.6 Commercial firms, have also picked up. In light of the recent paper and acceptances . .7 1.9 5.6 -2.3 7.2 improvement in corporate profits and liquidity Other2 ............ 3.4 3.8 6.0 2.9 5.7 positions, firms apparently have become more willing to move ahead with previously delayed includes pollution control bonds. 2Includes finance company loans and U.S. Government investment programs as utilization of capacity loans. increases. adj N u o st t ed e .— an F nu lo a w l r o a f t e f s u . n d D s a d ta a t f a o . r H 1 a 9 lf 7 - 6 y e H ar I d a a r t e a p ar r e e l a im t s in ea a s ry o . nally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 Federal Reserve Bulletin □ September 1976 total offerings in 1975. The decline in rates as of June indicate that private placement activ­ apparently induced many large corporations to ity thus far in 1976 has been more than 50 per market new bond issues earlier than planned or cent above the large volume in the first half of to increase the size of previously scheduled last year. Life insurance companies, the issues. Later, although bond yields moved principal lenders in private bond placements, somewhat lower through April and remained have channeled a greater share of their funds relatively stable in the second quarter, the vol­ into corporate debt, in part because of the rela­ ume of bonds issued by prime-rated firms was tive weakness in demand for mortgage credit on much smaller than in the first 3 months of 1976. commercial and multifamily properties during The volume of public bond offerings by the past year and a half. lower-rated corporations, however, rose signifi­ Even though stock offerings by smaller, less cantly in the second quarter. A number of fac­ highly rated firms have remained limited, the tors indicate that the market has become in­ improvement in stock markets over the past year creasingly receptive to such borrowers. As the and a half has encouraged many well-estabrecovery has proceeded and long-term interest lished corporations to float new equity offerings rates have generally declined, rates on lower­ after several years of heavy reliance on debt rated security issues have fallen faster than those markets. Stock prices have risen almost continu­ on prime-rated obligations. For example, the ously from the recession trough in late 1974 spread between yields on newly issued A-rated through early 1976, accelerating sharply in the and Aaa-rated utility bonds narrowed from more first quarter of this year. By the end of March, than 140 basis points in mid-1975 to less than most major stock price indexes had advanced 60 basis points on the average in the second 60 to 70 per cent from their lows in late 1974 quarter of this year. and were at their highest levels since January The improvement in availability of funds to 1973. During the second quarter, stock prices less-than-prime quality firms has also been re­ drifted somewhat below their March peaks, flected in an increase in privately placed bond fluctuating in a relatively narrow range in re­ issues, which typically are an important source sponse to investors’ uncertainty about the slower of funds for such corporations. Preliminary data pace of sales, the possible resurgence of infla- TA B LE 3 G ross issues of publicly offered corporate bonds Percentage distribution Amount Year (billions of Moody’s rating Maturity (in years) dollars) Aaa and Less than Less 10 to More than Aa Aa than 10 20 20 1973 ............ 13.6 55 45 7 3 90 1974 ............ 25.3 57 43 29 11 60 1975 ............ 32.6 53 47 24 20 56 1975—Ql ... 10.8 65 35 24 22 54 Q2 ... 10.5 50 50 28 20 52 Q3 ... 5.5 48 52 24 17 59 Q4 ... 5.8 42 58 21 16 63 1976—Ql ... 7.3 60 40 21 11 68 Q2 ... 7.4 47 53 7 19 74 Note.—Quarterly data are not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Shifts in Corporate Financing Patterns 739 tion, and continuing concern about a possible continue to be concerned about the quality of cyclical rise of interest rates. Nonetheless, the their loan portfolios. volume of stock financing has remained large. Responding to the over-all rise in stock prices, corporations marketed close to $13 bil­ C O R P O R A T E L IQ U ID IT Y lion, at a seasonally adjusted annual rate, of net new common and preferred stocks in the first The restructuring of balance sheets that has 6 months of 1976. This compared with a total taken place over the past year and a half has volume of approximately $10 billion for the year enabled nonfinancial corporations to raise the 1975 and only $4 billion in 1974. As has been ratio of liquid assets to current liabilities from typical in recent years, public utilities and com­ its postwar low in the third quarter of 1974 back munications companies accounted for the major to levels that had prevailed on the average share of new stock issues. But manufacturing between 1970 and 1973. firms have been unusually active issuers. Their Between the first quarters of 1975 and of gross new offerings in the first 6 months totaled $1.8 billion, not seasonally adjusted, a volume greater than total manufacturers’ offerings in any previous annual period. Liquidity m easures of The proceeds of long-term debt and equity nonfinancial corporations issues have been used by corporations primarily Ratio scale, billions of dollars to repay bank loans or to acquire liquid assets. More than $12 billion in bank loans were repaid during 1975, and the volume of outstanding Current liabilities commercial paper issued by nonfinancial firms declined $2.3 billion. In the first half of this year, firms continued to liquidate bank loans at a seasonally adjusted annual rate of $13 billion, more than offsetting an increase of about $7 billion in commercial paper volume. Although interest rates normally begin to move up in concert with a recovery in economic activity, the financial climate in the recent re­ covery has differed substantially from past cy­ Liquid assets to current liabilities clical upswings. Following some increase in rates in the summer of 1975, yields on shortand long-term market instruments turned down again in the fall. By April of this year, interest rates on most short-term securities had fallen to their lowest levels since late 1972. As market yields declined, commercial banks reduced the rate charged on loans to their prime business customers in successive steps from almost 12 per cent in 1974 to 6% per cent in the first Liquid assets include currency, demand and time deposits, U.S. Government securities, State and local obligations, and quarter of 1976. Even with these reductions, the open market paper. Short-term debt consists of short-term bank prime rate has continued high relative to the rate loans, open market paper, finance company loans, U.S. Gov­ ernment loans, and construction loans. Total current liabilities on 4- to 6-month prime commercial paper—a include short-term debt plus trade debt plus profit taxes pay­ major alternative source of funds for many of able. Flow of funds quarterly data, not seasonally adjusted. Data the larger corporations—suggesting that banks for 1976 Q2 are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 Federal Reserve Bulletin □ September 1976 1976, nonfinancial corporations added more percentage points below the 1974 peak. In addi­ than $22 billion to their liquid asset holdings, tion, the average maturity of new longer-term an increase of over 20 per cent and the largest debt issues has increased. More than two-thirds single-year increase on record. With relatively of all publicly offered bonds sold in the first attractive interest rates available on default-free half of 1976 carried maturities exceeding 20 Treasury issues and with supplies of short-term years, in contrast to only 56 per cent last year. private debt instruments reduced, an unusually Although the improvement in balance sheets large share of this expansion in liquid assets has been notable at the aggregate level, the has taken the form of acquisitions of U.S. over-all statistics tend to obscure differences in Government securities. Holdings of these obli­ performance among industries and among firms gations increased from less than $5 billion at within industries. Significant improvements in the end of 1974 to just under $23 billion in the liquidity position have been attained by many first quarter of this year. of the large, better-rated industrial firms. While liquid assets were increasing, total Among industry groups, electric utilities have current liabilities of nonfinancial firms were re­ restored their liquidity almost to pre-recession duced appreciably in the first 6 months of 1975. levels. More timely rate adjustments and slower On balance for the year, current liabilities were growth in fuel costs have increased the internal down about 1 per cent from the greatly inflated cash flow of the utilities, thus making it possible levels prevailing at the end of 1974. The decline for the industry to raise needed funds in long­ in the early months of 1975 was attributable in term debt and equity markets and to repay large part to corporate repayments of short-term short-term debt. market debt, and also to a decline in trade debt But firms in some other industries have not and tax liabilities associated with the weakness exhibited similar progress. Mining companies in economic activity. With the expansion of and gas utilities, for example, have experienced sales and profits during the recovery, tax liabili­ continued deterioration in their liquidity posi­ ties and trade debt growth accelerated, but cor­ tions, and the liquidity ratio of the retail trade porations continued to reduce their indebtedness sector, while no longer declining, has risen only to banks, thus moderating the over-all growth marginally above its recent low level. in total current liabilities in later quarters. Still, the financial posture of the nonfinancial The maturity structure of corporate liabilities corporate sector as a whole was appreciably has been substantially lengthened by the funding stronger in mid-1976 than a year earlier, and of short-term debt. After having declined almost indeed it was stronger than at any time since continuously since late 1974, the ratio of short­ 1973. Such an improved financial environment term to total market debt outstanding for nonfi­ should be conducive to expansion in business nancial corporations stood at 23.7 per cent in spending plans as the economic recovery pro­ the second quarter of 1976—very close to the ceeds, even if firms continue to manage finan­ average ratio for early 1973 and almost 2Vi cial resources conservatively. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

741 Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed­ forth are those of the authors and do not neces­ eral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub­ Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the Bulletin by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes­ back of each Bulletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies” that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve Bulletin. currently available in that form. S T U D Y S U M M A R Y E F F E C T S O F “ N O W ” A C C O U N T S O N C O S T S A N D E A R N IN G S O F C O M M E R C IA L B A N K S IN 1974-75 John D. Paulus—Staff, Board of Governors Prepared as a staff paper that was completed in the summer of 1976 In January 1974, following congressional legis­ The principal subject of this study is the lation enacted the previous summer, all deposi­ ongoing adjustment process of commercial tary institutions in the States of Massachusetts banks, whose traditional monopolistic position and New Hampshire began offering negotiable in the issuance of demand deposits has been orders of withdrawal (NOW) from savings ac­ eroded by NOW accounts. Both aggregate and counts to individuals, nonprofit organizations, microeconomic data are used to study costs and and sole proprietorships. Because NOW ac­ earnings of banks in the two States. The study counts are very similar to interest-bearing reviews shifts in market shares and develops checking accounts, the legislation essentially rough estimajtes of the direct effect of NOW established a formal experiment in the two accounts on aggregate commercial bank costs States in which limited demand deposit powers and earnings. Moreover, the earnings of 40 were extended to thrift institutions and in which banks either having low earnings in 1974, or the payment of interest on transactions bal­ having a high ratio of NOW accounts to total ances was authorized for the first time since deposits, or experiencing a significant run-off 1933. of demand deposit balances—so-called marginal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 Federal Reserve Bulletin □ September 1976 banks—are examined to determine whether banks only modestly, reflecting mainly shifts of banks that appear to be most vulnerable to demand balances to thrift institutions. No evi­ NOW-related pressures are experiencing espe­ dence was found to indicate that banks had lost cially difficult problems of adjustment. Charac­ significant amounts of time and savings deposits teristics of the steady state—the period after to thrift institutions offering NOW accounts. which the industry has had ample time to adjust These accounts are estimated to have reduced fully to NOW accounts—are considered, in­ aggregate after-tax earnings of commercial cluding implications for increased efficiency in banks in the two States by about 2Vi per cent the allocation of resources and the extent to in 1974 and by more than twice that amount which the public benefits, on balance, from the in 1975. However, the impact of NOW accounts issuance of NOW accounts. on earnings has been larger at marginal banks, The study finds that competitive pressures especially those that aggressively or defensively from thrift institutions offering NOW accounts have acquired a large volume of such ac­ reduced deposit market shares of commercial counts. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

743 Treasury and Federal Reserve Foreign Exchange Operations This 29th joint interim report reflects the 4 per cent, respectively. Elsewhere the Japanese Treasury-Federal Reserve policy of making yen and the Canadian dollar each rose a net 3V2 available additional information on foreign ex­ per cent against the dollar. change operations from time to time. The Fed­ The dollar, through its role as vehicle cur­ eral Reserve Bank of New York acts as agent rency in the market and intervention currency for both the Treasury and the Federal Open for central banks, was only occasionally caught Market Committee of the Federal Reserve Sys­ up in the turmoil. Thus, when the markets were tem in the conduct of foreign exchange opera­ particularly unsettled in February and March, tions. the Federal Reserve sold a total of $270.4 mil­ This report was prepared by Alan R. Holmes, lion of German marks and Dutch guilders, Manager, System Open Market Account, and mainly financed by swap drawings. This debt, Executive Vice President in charge of the however, was quickly cleared away by mid- Foreign Function of the Federal Reserve Bank May. Thereafter, the Federal Reserve had no of New York, and by Scott E. Pardee, Deputy occasion to intervene in the market through the Manager for Foreign Operations of the System end of July while taking advantage of opportu­ Open Market Account and a Vice President in nities to build up modest balances. the Foreign Function of the Federal Reserve Bank of New York. It covers the period Febru­ ary 1976 through July 1976. Previous reports TABLE 1 have been published in the March and Sep­ tember Bulletins of each year beginning with Federal Reserve September 1962. reciprocal currency arrangements In millions of dollars During the 6-month period under review, as the authorities of industrial countries sought to deal Amount of Institution facility, with the cumulative effects of deep-rooted eco­ July 31, 1976 nomic and financial instabilities, the exchange Austrian National Bank ..................................... 250 markets experienced several episodes of severe National Bank of Belgium ................................ 1,000 strain, in some cases resulting in sharply altered Bank of Canada .................................................... 2,000 National Bank of Denmark .............................. 250 rate relationships among major currencies. The Bank of England .................................................. 3,000 strains were particularly acute within Europe. Bank of France ..................................................... 2,000 Between January and the end of July the Italian German Federal Bank ......................................... 2,000 Bank of Italy ......................................................... 3.000 lira depreciated against the dollar by a net 20 Bank of Japan ....................................................... 2.000 Bank of Mexico .................................................... 360 per cent, the pound by 14 per cent, and the Netherlands Bank .................................................. 500 French franc—having left the European Com­ Bank of Norway ................................................... 250 munity (EC) “snake” arrangement—by 8 per Bank of Sweden . ................................................ 300 Swiss National Bank ........................................... 1,400 cent. Maintenance of the EC snake itself en­ Bank for International Settlements: tailed large-scale intervention on several occa­ Swiss francs/dollars ......................................... 600 sions. Although both the German mark and the Other authorized European currencies/dollars ............................................ 1,250 Swiss franc were often in heavy demand, on Total .............................................................. 20,160 balance they appreciated by only 2 per cent and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 Federal Reserve Bulletin □ September 1976 TA BLE 2 Federal Reserve System activity under its reciprocal swap lines In millions of dollars equivalent Drawings, System System or repayments ( —) commit­ commit­ Transactions with— ments , ments, Jan. 1, 1976 July 31, 1976 1976 Ql Q2 July National Bank of Belgium ........... 297.6 82.4 -86.5 -83.7 -45.0j German Federal Bank .................... 133.9 -26.4 -107.5 Netherlands Bank ............................ 19.6 -19.6 Swiss National Bank ..................... 567.2 *600.0 1,147 -20.0 Bank for International Settlements (Swiss francs) .............................. 600.0 600.0 J 753.5 Total .............................................. 1,464.8 I -752.6 -191.2 -45.0} I’229-6 Consolidation of Swiss franc swap debt. Note.—Discrepancies in totals are due to rounding. The dollar’s greater resiliency, in contrast to to focus on the problems afflicting other coun­ other periods of exchange-market unsettlement tries. in recent years, largely reflected the lifting of The pressures on individual European cur­ many of the market’s previous concerns over rencies largely reflected market concern over the the U.S. economic performance. Our recovery profound disparities in economic performance had by early 1976 gained considerable momen­ and policies among those countries. By early tum, erasing earlier fears that the upturn would 1976, only a few countries were showing clear falter. At the same time, the rate of inflation signs of sustained recovery and many European in the United States, already one of the lowest governments were still being pressed at home among major industrial countries, continued to for further stimulus to reduce the uncomfortably moderate. As a sign of our underlying competi­ high levels of unemployment. At the same time, tiveness in world markets, U.S. exports contin­ although some progress had been made every­ ued to rise in line with, if not faster than, the where against the inflationary excesses of the recovery of economies abroad. earlier 1970’s, large differentials in inflation Although the even greater rise in imports rates remained, with Switzerland and Germany swung the U.S. trade balance back into sizable at the low end of the spectrum and Italy and deficit, the sources of this surge—the rapid the United Kingdom at the high end. rebuilding of inventories early in the year and To the market, the persistence of differential the ballooning of fuel imports in the summer— trends in production and prices threatened to were generally taken as further evidence of the distort competitive relationships and thus even­ strength of our expansion. In addition, U.S. tually to lead to further exchange-rate adjust­ interest rates were fairly steady. Since they ments. Market participants, uncertain of the remained above rates in Germany and Switzer­ timing and extent of potential adjustments, land they helped avoid the kind of sudden shifts feared that a significant movement in any Euro­ of funds that had occurred in other recent pe­ pean currency rate might set off a chain reaction riods of exchange-market stress. More broadly, in other rates as well. Consequently, each time with many other political and financial uncer­ pressures developed in one currency or an­ tainties less pressing, traders were more inclined other—whether that currency was floating alone Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 745 TABLE 3 Drawings and repayments on Federal Reserve System by its swap partners In millions of dollars Drawings Drawings, Drawings on or repayments (-) on Banks drawing System, System, on System Jan. 1, 1976 July 31, 1976 1976 Ql Q2 July Bank of England ............................... 200.0 200.0 Bank of Italy ....................................... [500.0 -500.0] Bank of Mexico ................................. 360.0 360.0 Bank for International Settlements 14.0 37.0\ (against German marks) ............ -14.0 -37.0] Total ............................................. |500.0 574.0 37.01 1 ... -14.0 -537.0/ 5600 or linked to others in the EC snake— the whole During the period under review, the U .S. array of European currency relationships be­ authorities provided assistance, in the form of came open to question. On these occasions short-term credits, to the Bank of Italy, the Bank traders hastened to take speculative positions or of M exico, and the Bank of England. W ith to hedge exposures, and, in this rush to buy Italy, the Federal Reserve swap arrangement or sell individual currencies, the markets fre­ had already been reactivated in January by a quently became one sided. drawing of $250 m illion, and the Bank of Italy These episodes presented harsh policy drew a further $250 million in M arch. W hen choices to the authorities. For those whose cur­ market reflows into lire developed in the early rencies came into heavy dem and, to allow the summer, these drawings were completely repaid exchange rate to appreciate risked stifling ex­ in July. ports at a time of domestic concern over unem ­ W ith M exico, in early April the Bank of ploym ent, while to hold the rate through inter­ M exico drew the full $360 million available vention risked rekindling inflation through ex­ under its swap line with the Federal Reserve. cessive domestic m onetary expansion. For That drawing remained outstanding at the end others whose currencies came under heavy sell­ of July. ing pressure, to support the rate through m eas­ W ith the United Kingdom , in early June the ures such as monetary restraints risked delaying U.S. authorities agreed to provide up to $2 or aborting econom ic recovery, while to permit billion to the Bank of England as part of a $5.3 the exchange rate to fall sharply risked exacer­ billion total international standby credit facility. bating inflationary pressures through the higher As in several credits extended by U.S. authori­ cost of imports. ties in the past, both the Federal Reserve and For m any, these difficulties were compounded the U.S. Treasury participated, each standing by political uncertainties and by concerns over ready to provide $1 billion. The availability labor relations. Consequently, as recounted in from the Federal Reserve was under the existing the body of this report, the national authorities $3 billion swap arrangement. The Treasury’s responded with a variety of short-term measures credit line, also in the form of a short-term swap to deal with the immediate exchange-market facility, was for the account of its Exchange pressures while seeking to establish a fram e­ Stabilization Fund. By the end of July, in work for greater stability over the long run. proportion to the Bank of England’s borrowings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Federal Reserve Bulletin □ September 1976 TABLE 4 U.S. Treasury securities, foreign currency series In millions of dollars equivalent Issues, or redemptions (—) Outstanding, Outstanding, Issued to— Jan. 1, 1976 July 31, 1976 1976 Ql Q2 July Swiss National Bank ............................... 1,599.3 1,599.3 Total .......................................................... 1,599.3 1,599.3 from other countries participating in the facility, tions to the Swiss National Bank was unchanged the drawings on the Federal Reserve and the during the February-July 1976 period. Treasury each amounted to $200 million. To summarize other Federal Reserve opera­ tions, the System sales of German marks in GERMAN MARK February and M arch amounted to $250.8 m il­ lion, of which $133.9 million was drawn under By early 1976 the Germ an econom ic recovery the swap arrangement with the German Federal had begun to catch up with the earlier turn­ Bank and the remainder from balances. Pur­ around in the United States, with the initial chases of marks amounted to $265.6 m illion, impulse having been provided by domestic con­ which was used to repay the swap drawings by sumption and exports. At the same tim e, the mid-M ay and to replenish balances. Sales of rapid increase in German foreign orders sug­ Netherlands guilders in February amounted to gested to many m arket participants that export $19.6 m illion, drawn under the swap line with growth would keep pace with a predicted rise the Netherlands Bank. Purchases of guilders in im ports, thereby enabling Germany to hold amounted to $23.0 m illion, also to repay the on this year to most of its $3.8 billion 1975 swap drawing and to add to balances. current-account surplus, unlike other countries W ith respect to obligations outstanding since for which deficits were expected. As for wages August 1971, the Federal Reserve purchased and prices, Germany continued to record one $177.3 million of Belgian francs and used most of the lowest inflation rates in the industrialized of these francs to liquidate a further $170.5 world. At 5 per cent per annum, the increase million of the franc-denom inated debt to the in consumer prices was just about half that of National Bank of Belgium and reduce the total neighboring EC countries, while pay awards in to $82.4 million equivalent. The Federal Re­ recently negotiated union contracts remained serve in February transferred its $600 million moderate. of Swiss franc swap debt from the Bank for W hen announcing its money supply growth International Settlements (BIS) to the Swiss target for 1976, the Germ an Federal Bank had National Bank. During the period, the System stressed that the authorities would continue to purchased $33.2 million equivalent of Swiss attach a high priority to keeping a tight rein on francs from correspondents and liquidated $20 inflation. If, as a result, German interest rates m illion of its debt with the Swiss central bank. turned higher later in the year, the m arket saw This reduced commitments to $1,147.2 m illion, the potential for heavy reversals of the more which remained outstanding as of the end of than $5 billion of funds placed abroad by Ger­ July. The U .S. Treasury’s $1,599.3 million of man banks in 1975. m edium -term Swiss franc-denom inated obliga­ The improving econom ic trends in Germany Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 141 seemed more favorable than indications of of drawings under the swap arrangem ent with price, output, and external payments perform ­ the Germ an Federal Bank and by use of existing ances suggested for other EC countries. Thus, balances. by late January, following a sharp decline in By February 13 the m ark had begun to ease the Italian lira and a rapid build-up of specula­ back against the dollar and to m ove away from tive selling pressures against the French and the upper lim it of the EC snake in the wake Belgian francs, dealers began to question of this concerted central bank intervention and whether the m ark, still relatively weak within in response to statements em erging from the the EC snake, should not strengthen against Franco-Germ an summit reaffirming existing EC other European currencies. Speculative funds parities. Through the m onth-end, the m ark con­ were increasingly shifted into marks. Conse­ tinued to settle back except for two occasions, quently, the mark rate m oved up steadily against February 19 and February 27, when the m arket those European currencies and then against the was again briefly unsettled in New York. On dollar as well. By January 30 the m ark had been these 2 days, the Federal Reserve sold $15.8 bid up to $0.3868, IV2 per cent above its late- million equivalent of marks from balances. 1975 low, in occasionally unsettled trading. Otherwise, as trading conditions continued gen­ By early February the m ovem ent of funds into erally to im prove, the System was able to pur­ the m ark gathered m om entum , as rumors of a chase $65.2 m illion of marks in the m arket and realignm ent of currencies within the EC snake, from correspondents through early M arch, using possibly including a revaluation of the m ark, part of these acquisitions to repay $26.4 m illion surfaced in the market. By M onday, February equivalent of the recently incurred swap indebt­ 9, the continued weakness of the French franc edness with the Germ an Federal Bank. and Italian lira, news of a devaluation of the On M arch 4, the m ark was trading quietly Spanish peseta, and press reports that an EC around $0.3880 when a sudden, sharp decline currency realignm ent would be discussed at the in sterling prom pted renewed concern over the upcom ing m eeting between Germ an Chancellor viability of existing European currency rela­ Schmidt and French President Giscard d’Estaing tionships. After the European close the next provoked talk of an im m inent m ark revaluation. day, as some of the funds m oving from sterling Despite firm official denials of any intention to into dollars were in turn switched into m arks, revalue, the already broad-based bidding for the m ark was pushed up by more than V2 of marks quickly intensified. The m ark was driven a percentage point against the dollar and again up 2 lA per cent higher from levels at the end to its upper lim it against the French franc in of January to $0.3955 against the dollar and, the EC band. The polarization of the snake made for the first tim e since Novem ber 1974, to the trading conditions hectic once more. To help top of the EC snake. settle the m arket in New York, the Federal As the advance of the m ark extended the band Reserve sold $40.1 m illion of m arks, of which to its full lim it of 2lA per cent against the French $29.6 m illion was from balances and $10.5 franc, m arket participants rushed to take advan­ million was financed by a further drawing on tage of the em erging two-way speculative op­ the swap line. portunity, thereby aggravating pressure on the The mark and French franc rem ained under franc. In response, the French and German almost continuous pressure at the opposite limits central banks stepped up their intervention to of the joint float during the following week, and defend the limits of the snake, in dollars and both the Germ an Federal Bank and the Bank in each other’s currency as well. Occasionally, of France continued to intervene heavily in each the unsettled trading conditions in Europe other’s currency. Against the dollar the m ark washed over into the New York market. Thus, held fairly steady until Friday, M arch 12, when, the Federal Reserve intervened on 4 days during in the midst of unsettled pre-weekend trading February 2-11 to sell a total of $137 .4 million prior to an EC Finance M inisters’ m eeting, the equivalent of m arks, financed by $80.9 million mark again came into heavy dem and in New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 Federal Reserve Bulletin □ September 1976 York. The Federal Reserve then sold another leveled off to trade around $0.3945 throughout $12.7 m illion of m arks, financed by a swap April, some 2 per cent above end-of-January drawing. levels. M eanwhile, as funds began to flow back Following consultations over the M arch out of Germ any, the Federal Reserve acquired 13-14 weekend among the EC Finance M inis­ sufficient marks to repay $27.5 m illion of its ters, the French Governm ent decided to with­ swap debt with the Germ an Federal Bank, re­ draw the franc from the EC snake, while the ducing the total outstanding to $80 million. Dutch and Belgian authorities announced the During the spring, econom ic statistics were suspension of the Benelux currency arrange­ reinforcing the m arket’s view that the Germ an ment. In subsequent disclosures in the press, and Am erican recoveries were becom ing m ore it was reported that Germ any had been prepared nearly synchronized and that the m oderating to revalue the m ark as part of a broad realign­ trend of inflation in both countries was continu­ m ent of snake parities that, in the end, could ing. Thus, day-to-day movem ents in the m ark not be worked out. These disclosures made rate depended largely on relative money m arket dealers all the more convinced that the mark conditions. As the Germ an Governm ent drew would be either unilaterally revalued within the down during April and M ay balances that had EC snake or allowed to float independently. been built up at the Germ an Federal Bank, the Therefore, when the m arket reopened on the money m arket becam e liquid and remained m orning of M arch 15, the m ark began to rise comfortable even after the Germ an Federal against the dollar, pulling the rem aining EC Bank announced a two-stage increase in re­ currencies up in its wake. quired reserves effective M ay 1 and June 1. By In an attempt to m aintain orderly m arkets, com parison, U .S. m oney m arket rates turned up the Germ an Federal Bank bought substantial somewhat in late April. amounts of dollars as well as Belgian francs, As a result of these divergent tendencies, the Danish kroner, and Norwegian kroner through mark slipped back gradually against the dollar M arch 19. This intervention contributed to the during M ay, declining 2Vi per cent to $0.3849 $3.7 billion increase in Germ any’s foreign ex­ by the beginning of June. Taking advantage of change reserves in February and M arch. The the dollar’s buoyancy, the Federal Reserve ac­ pressures on the m ark also spilled over into the quired marks in the m arket and from corre­ New York m arket. Consequently, over M arch spondents sufficient to repay the rem aining $80 16-17 the Federal Reserve sold $34.9 million million swap debt with the Germ an Federal equivalent of marks. Of this, $29.8 m illion was Bank and to restore m odest working balances. drawn under the swap line, raising outstanding M eanwhile, some dealers also moved to un­ drawings since February to a peak of $107.5 wind longstanding positions in marks against m illion, and the rem ainder was from balances. other European currencies. Thus, as short-term The tensions within the snake began to funds flowed back out of Germ any, other central dissipate following the M arch 20-21 weekend, banks participating in the EC snake bought as the Germ an Governm ent again expressed its marks to repay m uch of their commitments with com m itm ent to m aintaining the existing m ark the Germ an Federal Bank. Nevertheless, the parity within the snake. Against the dollar the mark edged lower in the snake and also dropped m ark snapped higher before the quarter-end, as as m uch as 8 per cent to a record low against Germ an com m ercial banks bid for m arks to the Swiss franc by early June. m eet reserve requirem ents and traders posi­ To stem the erosion of the m ark rate against tioned for the end of an accounting period. the Swiss franc as well as to facilitate the further After the German Federal Bank purchased a financing of the Germ an Governm ent’s budget small amount of dollars at the Frankfurt fixing deficit, the Germ an Governm ent arranged with on M arch 30 and the Federal Reserve sold $9.9 the Swiss authorities to place a m ark-denom in­ m illion equivalent of m arks from balances later ated borrowing of 750 m illion Germ an marks that day, the m arket quieted. The spot rate then with the three m ajor Swiss commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 749 As dealers positioned for potential m ark pur­ instrum ents, thereby offsetting the continuing chases against sales of Swiss francs ahead of current-account deficit. the June 15 paym ent date for this loan, the m ark Consequently, even as other European cur­ rate was tem porarily bid up to as high as rencies were buffeted by heavy divergent pres­ $0.3908. It soon settled back to trade between sures in January and February, sterling traded $0.3875 and $0.3890 in well balanced trading narrowly just above $2.0250 against the dollar until late in the period. through early M arch. Over the same period, its By summer, econom ic indicators showed that effective depreciation since the Decem ber 1971 both the Germ an and U .S. econom ic expansions Smithsonian agreem ent, having held steady had slowed somewhat in the second quarter. At around 30 per cent through early February, rose first, these reports were largely offsetting in their to around 30.5 per cent before falling again to impact on m arket psychology. But toward the around 30.1 per cent in early M arch. end of July, this news was accompanied by The Bank of England, intervening to avoid gradual declines in U .S. short-term interest rates sharp movem ents in the rate either up or down, that contrasted with gently rising money m arket was able to accumulate a m odest am ount of rates in Germ any. M oreover, the market was dollars from m arket operations in January-Febincreasingly aware of Germ an public sector ruary which, together with public sector bor­ borrowing abroad. Then, sizable buy orders for rowings and a $1.2 billion drawing on the marks prom pted a sharp rise in the spot rate International M onetary Fund (IM F) oil facility, just before the m onth-end. This unexpected ad­ contributed to a $1.6 billion increase in Britain’s vance after a long period of steadiness soon reserves over the 2 months. As this generally attracted professional dem and for m arks and a more favorable exchange-m arket atmosphere recurrence of pressure on the EC snake. In em erged at the turn of the year, the U .K . sometimes hectic trading, the rate jumped 1 % authorities allowed interest rates to ease in an per cent in 2 days to $0.3952 by July 30, which attempt to stimulate dom estic investm ent was some 2 per cent above the levels at the spending and thereby to reduce unem ploym ent. end of January. The Bank of England’s m inim um lending rate had been gradually reduced from its peak of 12 per cent in Novem ber 1975 to 9XA per cent by late February, with scope for even further re­ duction on the basis of m arket interest rates in STERLING early M arch. In contrast to most other EC currencies, sterling Sterling’s stability nevertheless clearly rested rem ained fairly steady in early 1976. By that on fragile underpinnings. Although heartened time the exchange m arket’s previous extreme by the results of the wage restraint program , pessim ism over prospects for the pound had many traders rem ained skeptical that the first lifted somewhat. The wage restraint program year’s phase would m eet its full objectives and adopted in m idsum m er 1975 had already shown that the next phase, still to be negotiated, would positive results in slowing Britain’s severe be sufficient to achieve lasting improvem ent. w age-price spiral. The nearly 13¥2 per cent M oreover, the very depth and prolongation of depreciation of sterling over 1975 had left Brit­ the recession in Britain raised concerns in the ish exports fairly com petitive. Although the market that the Governm ent would eventually British econom y was still in deep recession, shift to a more stim ulative fiscal policy, possibly the econom ies of m ost m ajor trading partners in the budget to be announced in April. Fur­ were well into recovery and an export-led upturn therm ore, in the context of m assive speculation for the United Kingdom was a distinct possi­ over relationships among other European cur­ bility. In the m eantim e, large interest rate dif­ rencies, the fact that Britain continued to have ferentials favoring the pound stimulated sizable one of the highest inflation rates among indus­ placem ents in both short- and long-term sterling trial nations— running by then at 15 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin □ September 1976 per annum— led m ost m arket participants to off just above $1.90 toward the end of M arch, expect that sooner or later the pound would a new wave of precautionary selling drove the undergo a further downward adjustment. rate down by a further 3 per cent to $1.85 in Against this background, the market atm os­ early April. phere changed abruptly in a swiftly moving In fram ing the budget m essage, the U .K . sequence of events beginning on M arch 4. On Governm ent addressed m any of the issues that that day the U .K . authorities, confronted with troubled the market. Among other m easures, a substantial but short-lived bunching of com ­ Chancellor Healey announced a proposal to m ercial orders in the m arketplace, intervened provide tax relief to the nation as a whole on to supply sterling and absorb dollars to avoid the condition that, in the second phase of the a potentially unsustainable appreciation of ster­ pay policy, the trade unions accept even more ling above prevailing levels. Once these de­ severe restraints on wage increases than before. mands were m et, however, sterling cam e on As the Governm ent and the trade union leader­ offer so suddenly that m any market participants ship pressed ahead with their negotiations, the concluded that the authorities had acted to sterling m arket reacted nervously to each twist depress the rate. Heavy selling pressure and turn in the highly publicized bargaining em erged the next day in Europe, and sterling process. plunged with little m arket resistance through the M eanwhile, the pound’s already sharp slide, $2.00 level. On that day also, the m inim um increasingly less favorable interest rate dif­ lending rate was reduced by a further per­ ferentials for sterling, and reserve needs for centage point to 9 per cent. some sterling holders prom pted many to con­ That weekend, sterling’s breach of the $2.00 tinue to disinvest their sterling assets or switch benchm ark was featured in press and television into other currencies. This process added to the news com m entary around the world. W ide­ drag on the spot rate for sterling and the drain spread selling of pounds resum ed on M onday, on British reserves, as the Bank of England M arch 8, and sterling fell nearly 10 cents to intervened to sell substantial amounts of dollars below $1.93 before edging back late in the day to cushion the pound’s decline. As a result, to trade around $1.9425. M eanwhile, the Bank U .K . reserves dropped a full $2.2 billion during of England had intervened heavily to moderate M arch and April, even after the receipt of $600 the decline. m illion of public sector borrowings. This precipitous drop of more than 4 per cent In a sharp reversal of policy, the Bank of in three trading days left the market badly shak­ England began to tighten money m arket rates, en. W ith the pound now vulnerable to further hiking its m inim um lending rate 1 Vi percentage downward pressures, it was soon caught up fully points to 10x/2 per cent on April 26 and follow­ in the interplay of speculative forces besetting ing up with another 1 per cent increase on M ay other EC currencies. Com m ercial leads and lags 24. M oreover, on M ay 5, the Governm ent an­ shifted abruptly against sterling as did the flow nounced successful com pletion of the wage of nonresident investm ent funds. policy negotiations with the Trades Union Con­ Various uncertainties were injected into the gress. In exchange for the tax cut, the Govern­ m arket by Prime M inister W ilson’s unexpected m ent had secured agreem ent from the union resignation and the ensuing struggle within the m ovem ent’s leadership to lim it phase two wage Labour Party from which M r. Callaghan increases, beginning on August 1, to 4.5 per em erged as successor, the wide range of public cent per annum under a form ula that came close pronouncem ents on Britain’s policy choices by to the terms set forth in the budget address. econom ic analysts and spokesmen for different Also, to bolster cash reserves, in early M ay the interest groups, and the continuing unrest on the U .K . authorities announced that they would take labor front. These concerns heightened the down a further $806 m illion from the IM F, m arket’s anticipation of the budget address, under a previously arranged first-credit-tranche scheduled for April 6. Although sterling leveled standby. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 751 Nevertheless, during M ay the market became U .S. Treasury up to $1 billion through the so thoroughly dem oralized that favorable devel­ Exchange Stabilization Fund. In announcing the opments were virtually ignored or greeted with U.S. participation, the U .S. Treasury and the skepticism , while traders reacted quickly to Federal Reserve said: “ These arrangements anything that might conceivably affect sterling have been m ade in the light of the recent fall adversely. News reports that particular trade in the value of the pound sterling under ex­ unions might possibly reject the negotiated lim ­ change m arket pressures w hich have led to itations on wage increases and further bits of disorderly m arket conditions, and in the com ­ unfavorable economic news— the unexpected m on interest in the stability and efficient func­ increase in the April trade deficit, the sharp rise tioning of the international m onetary system .” in April retail prices, the decline in U .K . indus­ Announcem ent of the standby credit was car­ trial production in M arch— sparked renewed ried by the news services shortly after 10:30 selling of sterling. As the rate continued to a.m . New York time. At that point the Bank plunge, dealers expressed open concern over the of England and the Federal Reserve Bank of willingness or the ability of the authorities to New York, as its agent, sim ultaneously entered halt the slide. their respective m arkets, bidding openly for Consequently, even as the Bank of England sterling at the current rate of exchange. The provided further support— official reserves de­ combined force of the news and the central bank clined by $250 m illion in M ay net of the IM F presence in the m arket had an electrifying ef­ drawing— the pound dropped through $1.80 to fect. W ithin a matter of m inutes, and with only $1.75 by the end of M ay and plum m eted to as a nominal purchase of sterling by the authorities low as $1.7020 in the first week of June. This before they withdrew to the sidelines, the spot represented a drop from early M arch of 153A rate shot upward in a rise that carried it to $1.80 per cent against the dollar and 11.8 percentage by the time the London m arket reopened the points to 41.9 per cent on an effective trade- following morning. weighted basis since the December 1975 However, the m arket quickly sought to test Smithsonian agreem ent. the determ ination of the British authorities to M eanwhile, Chancellor of the Exchequer support the rate at prevailing levels. As sterling Healey and other Governm ent spokesmen ex­ dropped back to around $1.77, the Bank of pressed the firm view that the various m easures England countered with substantial dollar sales, taken so far would achieve the greater price both in London and through the Federal Reserve stability and im proved productivity necessary to Bank in New York, while reinforcing a liquidity strengthen sterling over the long run. Indeed, squeeze by operating in the m arket for shortthe wage restraint program negotiated with the dated swaps. These operations helped stabilize Trades Union Congress was by that time gaining the pound som ewhat, and over subsequent days acceptance in votes among individual unions. fairly good two-way business was again m oving To deal with the im mediate concerns of the through the m arket. exchange m arket, however, the U .K . authorities Nevertheless, dealers continued to look for began in early June to discuss short-term credit a new domestic policy initiative to cut public availability with foreign central banks and Gov­ expenditures and to restrict m onetary growth, ernments. as well as evidence of an underlying im prove­ From those discussions, largely conducted ment in British econom ic perform ance. Conse­ over the weekend of June 5-6, em erged a $5.3 quently, sterling rem ained vulnerable to an oc­ billion package of standby credits to the United casional burst of selling pressure and on indi­ Kingdom from the Group of Ten countries plus vidual days official support for the pound was Switzerland and the BIS. As part of the pack­ quite heavy. By the end of June, the spot rate age, the Federal Reserve stood ready to make was around $1.77 and intervention had dim in­ available up to $1 billion under the swap ar­ ished considerably. To offset outflows from re­ rangem ent with the Bank of England and the serves resulting from recent intervention opera­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin □ September 1976 tions, the Bank of England drew in late June In the m eantim e, the Swiss authorities, con­ on the standby facility. In this connection it took cerned about the eventual adverse effects of a down $200 million on the swap line with the strengthening exchange rate on Swiss exports, Federal Reserve and $200 million from the took steps to lim it the franc’s rise. The official Exchange Stabilization Fund. discount and Lom bard rates were reduced fur­ During July the sterling market gradually ther to 2Vi per cent and 3V2 per cent, respec­ became less fragile and rate movements pro­ tively, in early January. In addition, the N a­ gressively narrowed. Evidence of a more firmly tional Bank stepped up its official purchases of based econom ic recovery began to appear. dollars in Zurich and to a m odest extent in New M oreover, the British Governm ent announced York through the New York Bank as agent. To details of a reduction in public sector expendi­ avoid jeopardizing the authorities’ m onetary tures for the 1977-78 fiscal year to free more target for the year, these operations were offset resources for exports and industrial investment. by the ongoing program requiring foreign bor­ Although the m arket initially reacted with some rowers of Swiss francs to convert the proceeds disappointm ent that these measures were not of their borrowings at the central bank and by stronger, trading conditions improved. By the increased Governm ent borrowings. end of July the pound had settled around $1.78, Although by early February the particular some 4V2 per cent above the early-June low. demands for Swiss francs had largely been m et, M eanwhile, the effective trade-weighted depre­ the franc soon was caught up in the tensions ciation had improved to 38.8 per cent. affecting other currencies in m id-February and early M arch. M arked up against the dollar in sympathy with the rise of the Germ an m ark, the rate increased to $0.3970 on M arch 17, even SWISS FRANC as the National Bank continued to intervene. Coming into 1976, the m arket’s attitude toward After pressures within the EC snake began to the Swiss franc was even m ore bullish than subside late in M arch, the Swiss franc remained before. Switzerland’s inflation rate had declined in demand in response to the usual quarter-end to less than 3Vi per cent per annum, a striking needs for francs. The National Bank provided improvement from the 10 per cent rate that had liquidity assistance, m ostly through swaps over prevailed just 12 m onths before and well below the m onth-end but also through further outright rates elsewhere. The current-account balance spot dollar purchases, with the result that the was in exceptionally strong surplus and, with spot rate held steady against the dollar and domestic demand still stagnant and showing few around par with the Germ an mark. signs of an early recovery, was expected to Early in April, however, the Swiss franc once rem ain favorable well into the new year. A l­ again em erged as a focus of market attention, though Swiss interest rates had been kept low rising strongly not only against the dollar but and the outflow of capital was swollen with also against the Germ an mark. Figures were greatly increased nonresident borrowings in released, confirming the further m oderation of Swiss francs, the m arket was concerned over price increases in Switzerland as well as the the potential demand for francs that could arise continued strength of the current-account sur­ whenever borrowers covered themselves. In­ plus. Switzerland once again provided a haven deed, a number of m arket participants with for those funds seeking an escape from the recent and long-standing debts in Swiss francs continued uncertainties elsewhere, and the franc moved to cover their franc exposures in early was bid up strongly as funds were shifted out January. The franc, therefore, came into strong of Italian lire and sterling. Renewed hedging dem and, rising through the m onth-end by some of long-term Swiss franc commitments by U .S. 5 Vi per cent from its September 1975 low to and other corporations, periodic inflows from $0.3844 against the dollar while reaching par the Organization of Petroleum Exporting Coun­ against the Germ an mark. tries (OPEC), eastern Europe, and third world Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 753 countries, and outright speculative positioning Following these actions, the Swiss authorities further reinforced dem and for Swiss francs. immediately stepped up the scale of their inter­ In view of these continuing sources of vention in both dollars and Germ an marks. As strength, the market becam e fearful that the the m arket assessed the im pact of this heavier authorities would again seek to contain the intervention and the Germ an Governm ent bor­ franc’s rise by im posing yet m ore controls rowing on the franc-m ark relationship, dealers against the inflow of foreign funds. Against this moved to cut back some of their large Swiss background, the announcement early in April franc positions. The franc therefore fell back of new regulations restricting the im portation of 5% per cent against the dollar to $0.3960 on foreign bank notes seemed to confirm the m ar­ June 9, while dropping a similar am ount against ket’s concern, and the franc again became the Germ an mark. strongly bid. As the Swiss franc weakened, some of the The Swiss National Bank continued to pur­ banks and multinational corporations with ex­ chase dollars in the market to contain the franc’s posures in francs took advantage of these rates rise. At the same tim e, however, National Bank to begin again to cover them selves. M oreover, President Leutwiler conceded that neither the sales of Swiss francs to finance participations balance of payments nor cost-price relationships in the German Governm ent loan soon tapered warranted a restoration of earlier rates for the off. As a result, dem and for francs re-em erged franc. Thus, the franc was subjected to succes­ and remained periodically heavy over subse­ sive waves of dem and that swept the spot rate quent days, with the Swiss National Bank pro­ up by June 2 to a peak of $0.4197, 9 per cent viding resistance to a further sharp rise in the above late-January levels and its highest point rate. since early 1975. In the m eantim e, the franc By the end of June the Swiss National Bank gained some 8 per cent to a record high against had purchased a total of $4.4 billion since the the Germ an mark. beginning of the year. During the first quarter, The protracted rise of the Swiss franc threat­ the bulk of the spot intervention had been offset, ened to aggravate the pressures on Swiss ex­ largely under the capital export conversion pro­ porters at a time when the dom estic econom y gram , and the National Bank had provided tem ­ still had not joined in the econom ic recovery porary liquidity partly by conducting short-term developing elsewhere. In response, the Swiss swaps with the Swiss banks. authorities prepared to stiffen their resistance to During the second quarter, however, a the franc’s advance. They agreed that a 750 smaller portion of the reserves injected through million m ark loan for the Germ an Government the Swiss National Bank’s intervention was ab­ be placed with the three major Swiss com m er­ sorbed and the Swiss money m arket became cial banks and that the m arks be purchased in increasingly liquid. To help keep m onetary ex­ the market. pansion in line with the National Bank’s target, On June 8 the Swiss National Bank an­ reserve requirements on foreign deposits were nounced an extensive package of exchange raised, effective July 26, and Governm ent bor­ controls and other m easures to curb the “ exces­ rowings were stepped up. But even so, Swiss sive speculation that led to the Swiss franc’s interest rates rem ained extrem ely low in sharp clear overvaluation.” In addition, the authori­ contrast to the somewhat firmer tendencies that ties pledged to “ intervene m assively, if neces­ developed from time to time in other centers. sary, to correct disorderly exchange rate m ove­ Consequently, the Swiss franc leveled off to m ents,” blocking the Swiss franc countervalue trade more narrowly around $0.4038 during of their dollar purchases if needed to avoid m ost of July. Just before the m onth-end, how ­ underm ining Swiss monetary targets. M oreover, ever, it was pulled up som ewhat by the Germ an the Swiss central bank again cut both its dis­ m ark’s advance. As a result— by July 30— the count and Lom bard rates to 2 and 3 per cent, franc was, on balance, som ewhat more than 4 respectively, the lowest levels since 1963. per cent above end-of-January levels but still Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin □ September 1976 33A per cent below its peak of early June. eased back som ewhat, thereby narrowing the Against the Germ an m ark, it had gained 2Vz interest differentials favoring France. As credit per cent on balance over the period, though the conditions im proved, French com panies repaid gap between the two currencies had narrowed some of their previous foreign borrowings while some 5Vi per cent from its widest point 2 months new borrowings abroad declined. before. W ith the outlook for France’s balance of During the period, the Federal Reserve trans­ payments more uncertain, the French franc was ferred its $600 m illion of Swiss franc swap debt left exposed to the successive waves of selling from the BIS to the Swiss National Bank. The that developed in early 1976. Following the System purchased $33.2 m illion equivalent of January 21 suspension of official support for the Swiss francs from correspondents and liquidated Italian lira and its subsequent sharp drop, the $20 m illion of its debt with the Swiss central market increasingly cam e to question the com ­ bank. Swiss franc commitments outstanding at petitive relationships within Europe and the the end of July totaled $1,147.2 m illion. viability of existing EC parities. As a result, the French franc had already come on offer late in January when dealers unloaded long French franc positions and leads and lags shifted against FRENCH FRANC the franc. As the franc weakened, it dropped During m uch of 1975 the French franc was below the midpoint of the EC snake. The Bank bolstered by a strong im provem ent in France’s of France intervened to cushion its decline by external position. A severe recession at home selling dollars heavily in Paris and limited and reduced energy requirem ents helped to amounts in New York with the Federal Reserve swing France’s trade account into surplus. Rel­ Bank of New York acting as its agent. atively high interest rates in France had stim u­ Nevertheless, speculative pressures within the lated sizable inflows of foreign funds, while EC monetary agreem ent continued to mount as French companies had been encouraged to bor­ repeated rumors of a possible realignm ent of row abroad. Thus, the French franc remained snake currencies— involving some combination relatively firm within the EC snake after its of a franc devaluation and a German mark re-entry at the form er parity in July 1975. The revaluation— swept through the markets. Con­ Bank of France intervened frequently to keep sequently, the franc and the m ark were pushed the franc off the top of the EC band, with the toward the opposite extremes of the joint float official purchases reflected in the increase in by the second week of February. The February French reserves recorded for the second half of 9 devaluation of the Spanish peseta and the 1975. approach of a scheduled Franco-Germ an summit By the turn of the year, however, the balance meeting on February 12-13, reportedly to of m arket forces began to turn against the discuss among other things an EC currency French franc. The fiscal stimulus provided early realignm ent, further intensified the two-way last fall, when the recovery in France— as in speculation within the snake. In response, the other European countries— was still lagging be­ Bank of France stepped up the scale of its hind that in the United States, had by then operations, selling large amounts of dollars as generated a quick rebound in the domestic well as a substantial sum of German marks econom y. This drew imports from abroad between February 9 and February 12. At the sufficient to turn France’s trade position back same time, in Frankfurt the German Federal into deficit by late 1975. It also raised market Bank followed up on its dollar purchases with concern over whether the inflation rate, which some French franc acquisitions to help keep the had eased just below 10 per cent, would con­ franc above the floor of the snake. tinue to decline toward levels more nearly in In the wake of this officially acknowledged line with those in Germ any and the United intervention, the m arkets began to settle down States. In the m eantim e, domestic interest rates by February 13. M oreover, reports from that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 755 weekend’s summit m eeting reaffirming prevail­ dealers responded by covering their extrem ely ing EC parities, together with a tightening of expensive short franc positions. The spot rate French interest rates, prom pted some covering soon recovered to around $0.2150 against the of short franc positions. As a result, the franc dollar, or about 2Vi per cent below its old regained a portion of the ground it had lost support lim it against the Germ an m ark within against the mark and later eased back less than the EC snake. other continental currencies as the dollar gener­ Over subsequent weeks, dealers remained ally firmed. By the m onth-end, it had declined cautious toward the French franc and there were against the dollar some Vi of a percentage point no significant reversals of the speculative out­ from early-February levels to $0.2234. Against flows of January-M arch. The franc m arket was other European currencies, however, it had roughly in balance, however, as a m odest un­ firmed to a level 3A of a percentage point above winding of adverse leads and lags and conver­ the floor of the EC snake, and the Bank of sions of new French corporate borrowings France began to recoup some of its reserve abroad tended to offset continuing commercial losses. demand for foreign currencies by French resi­ Nevertheless, most m arket participants re­ dents. mained convinced that an early realignm ent of The spot rate drifted down gradually to EC parities was inevitable. Thus, when ster­ $0.2108 by early June, as the dollar gained ling’s sharp decline in early M arch and the generally in response to a renewed rise in U .S. continuing plunge of the Italian lira again short-term interest rates. Against other EC cur­ brought into question competitive relationships rencies the French franc held fairly steady. The within Europe, a new and more virulent round Bank of France was therefore able to take ad­ of speculation against the franc was quickly vantage of occasional bidding for francs to pur­ ignited. In the wake of these precipitous de­ chase currencies in the m arket. Even so, the clines in exchange rates for two of France’s decline in France’s reserves for the first 5 m ajor trading partners, the French franc came months of the year came to about $3 billion. under m assive pressure, as commercial and During the summer the m arket becam e even professional m arket participants offered huge more hesitant toward the franc. Although the amounts of francs in the exchanges at the same pace of inflation had m oderated, m any m arket time that the Germ an m ark was strongly bid. participants feared that a continued expansion Leads and lags shifted even more heavily of domestic dem and would reverse this trend against the franc, and the large-scale speculative and widen the gap between inflation rates in positions established during January and Febru­ France and those abroad. Then, the m arket’s ary were lengthened even further. The Bank of attention shifted to the impact on France of the France met these pressures with further forceful severe European drought. M ore serious in intervention that resulted in a considerable loss France than in m ost other countries, the drought of French reserves for the several days that was expected by many forecasters to push up preceded the M arch 13-14 meeting of EC Fi­ food prices, cut into agricultural exports, and nance M inisters. increase oil imports to compensate for the loss Over the weekend, when no realignm ent of hydroelectric power. within the EC snake was achieved at the summit Under these circumstances the selling of m eeting, the French Governm ent decided to French francs again built up early in July. The withdraw the franc from the EC snake and allow Bank of France initially resisted with heavy it to float independently. W hen trading resum ed dollar sales. But the pressures continued, fueled on M onday, M arch 15, the franc at first plum ­ by open debate in the press over the Govern­ m eted m ore than 5 per cent in a nervous and m ent’s resolve to stem a further decline in the uncertain market. But as the cost of overnight rate and to contain continuing wage and price borrowings in the Euro-franc m arket abroad pressures. The authorities then moved to resist soared to as m uch as 800 per cent per annum , a further decline in the franc rate by raising Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin □ September 1976 dom estic interest rates, including a IV2 percent­ $594 m illion in convertible currency reserves, age point increase to 9V2 per cent in the Bank and to add to its cash balances, it drew $250 of France’s discount rate, effective July 22. The m illion under the swap line with the Federal m arket at first interpreted this move as indicating Reserve. But in the absence of a new govern­ a considerably m ore flexible intervention policy, ment and with the adequacy of Italy’s reserves and the rate briefly eased further. By the end a matter of open discussion in the press and of July the spot rate had fallen to about 10 per the m arket, prospects of a further flight of capi­ cent below its previous lower intervention point tal from the country becam e overwhelm ing. against the German mark. Trading at $0.2035, Thus, on January 21 the Italian authorities an­ the franc was some 9 per cent below early-Feb- nounced that the Bank of Italy would suspend ruary levels against the dollar. official dealings in the exchange m arket to con­ serve reserves. This decision left the lira effectively floating freely, and with selling continuing into Febru­ ary, the spot rate dropped fairly sharply from ITALIAN LIRA time to time in a thin market. There were Pressure against the Italian lira had been build­ occasional pauses in the decline, as traders ing up during the fall of 1975 in response to responded to events that gave rise to hopes of deepening econom ic and political uncertainties an end to Italy’s governm ental crisis or a re­ in Italy. Industrial activity showed only tentative sumption of official dealing. Nevertheless, the signs of recovery, as sectoral bottlenecks market was so thoroughly dem oralized that two blunted the impact of the fiscal and monetary hikes in the Bank of Italy’s discount rate from stimulus provided earlier in the year. At the 6 per cent to 8 per cent during February and same tim e, the strengthening of the dollar increased bank reserve requirem ents evoked lit­ against the lira prom pted large repayments of tle market response. M oreover, the eventual foreign borrowings by Italian banks, and a drop announcement that a new m inority government in domestic interest rates facilitated the financ­ would be form ed under Prem ier Aldo M oro ing of a sharp rise in raw materials imports as gave but a m om entary boost to market psychol­ firms began to restock depleted inventories. ogy. Instead, in increasingly one-sided trading, Thus, the outflow of capital accelerated and the the lira fell to $0.001245 (803 lire) by February trade balance deteriorated sufficiently to erode 24, \5V4 per cent below levels prevailing before much of the im provem ent evident earlier in the cabinet resignation. 1975. M eanwhile, the fall in real income in Italy M eanwhile, the Italian authorities grew more and the renewed upturn of the inflation rate had concerned about the deterioration of market generated increasing political and social unrest, conditions and about the drop in the rate that with important labor negotiations approaching threatened to set off a new bout of inflation at a critical stage. After a prolonged cabinet crisis, home. Consequently, the Bank of Italy moved Italy’s m inority coalition government resigned ahead with plans to resume official intervention in January 1976, and as efforts went forward to restore more orderly trading again. Even as to strike a new political compromise on which the new governm ent was being form ed, the a viable cabinet could be form ed, the lira came Italian authorities initiated discussions for a new heavily on offer in the exchanges. IM F standby credit and concluded arrangements At first the Bank of Italy countered these with other EC governments to borrow $1 billion pressures with forceful intervention to keep the in the international m arkets through the EC oil lira rate roughly in line with other European facility. As these negotiations to secure mecurrencies. From January 2 to January 20 it sold dium -term credit went forward, the Federal Re­ more than $500 m illion, raising the entire re­ serve agreed to make available to the Bank of serve loss since m id-1975 to $2.4 billion. As Italy, in addition to the $250 m illion already a result, the Bank of Italy was left with only drawn, a further $500 m illion under the swap Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 757 arrangement to backstop the Bank of Italy’s cash swap line with the Federal Reserve, raising the resources. total of actual drawings to $500 m illion. The Late in February, when the new government EC oil facility borrowing was also com pleted, presented its econom ic program to parliam ent, bringing a further $1 billion into Italian re­ the authorities also announced that they would serves. reopen official exchange-m arket dealings on The tentative im provem ent in m arket condi­ M arch 1, with some $2 billion of credit avail­ tions following the M arch m easures was dealt able including the funds extended for this pur­ a stunning blow in early April, when a serious pose by the Federal Reserve. The m arket re­ disagreem ent over noneconom ic issues erupted sponded favorably and while potential pur­ in parliament. As it became clear that new chasers of foreign currencies held off satisfying elections were inevitable, market fears of a their needs until M arch 1, the lira was marked strong showing by the Com m unist Party led to up more than 4% per cent to $0.001302 (768 renewed capital outflows, which pushed the spot lire) temporarily at the end of February. rate down by M ay 5 to a record low of In early M arch, when the backlog of com ­ $0.001090 (917 lire), fully 26 per cent below mercial orders for dollars— particularly by Ital­ early-January levels. Also in early M ay the ian oil companies— reached the m arket, the lira forward discount soared to 42 per cent per im m ediately came under selling pressure. Then, annum. just as the market was settling down, the lira After the close of trading that day, the Italian was caught up in the resurgence of generalized caretaker governm ent began to announce a set speculation over European currency relation­ of tough foreign exchange restrictions designed ships. Hit by renewed selling, the spot rate was to curb import growth, to encourage reversals driven down by 9 per cent to $0.001188 (842 of adverse leads and lags, and to stabilize the lire) by M arch 16, even as the Bank of Italy lira spot rate until a new governm ent could be provided large-scale support. elected. As of M ay 6 , all foreign currency The Italian authorities responded to these purchasers, except grain im porters, were re­ pressures by tightening regulations on capital quired to deposit 50 per cent of the countervalue outflows and by restricting the capacity of com ­ of their acquisitions in non-interest-bearing ac­ mercial banks to cover their custom ers’ forward counts for 3 months. This m easure, aimed at lira sales through requiring a 10 per cent reduc­ discouraging speculative outflows via the over­ tion in com m ercial bank “ spot against forw ard’’ invoicing of im ports, was also expected to mop transactions by the month-end. M ore im por­ up about $4 billion equivalent of liquidity over tantly, they imposed severe fiscal and monetary 3 months. deflationary m easures, raising the Bank of On M ay 7, Italian exporters were told to Italy’s discount rate an unprecedented 4 per­ convert foreign currency earnings within 7 days centage points to 12 per cent and proposing of receipt to shorten the lag between export em ergency tax and gasoline price increases es­ transactions and foreign currency conversions. timated to absorb some $ 1.8 billion equivalent. On M ay 10, exporters granting foreign currency The announcem ent of these measures, at a trade credits of up to 120 days were required time when there were still only tentative indica­ to convert 30 per cent of the value of those tions of a recovery in the domestic econom y, credits into lire within 7 days of the transactions. impressed the m arket and touched off a sharp M oreover, technical changes in existing ex­ rebound in the spot rate. In the forward m arket, change restrictions were announced to raise both however, the discount on 3-month lire more the cost and risk of m aintaining short lira posi­ than doubled to m ore than 17 per cent per tions. annum on M arch 31, as liquidity in Italy tight­ The imposition of these sweeping exchange ened and the new exchange control restrictions restraints provoked an immediate scramble for began to take effect. M eanwhile, the Bank of lira balances. The spot rate shot up to as high Italy took down another $250 million on its as $0.001235 (810 lire) in early European trad­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin □ September 1976 ing on M ay 10, before settling around although unem ploym ent was still rising and the $0.001193 (838 lire) later in M ay, 9Vi per cent inflation rate was still about 10 per cent, the above the low early in the m onth. Thereafter, domestic econom y was beginning to show signs as the exchange control m easures continued to of an upturn. Consequently, exchange-m arket contribute to a squeeze on domestic liquidity, sentiment was extrem ely favorable, and the the lira traded more quietly around this level guilder traded firmly at the top of the EC snake until the June 20-21 general elections. as well as at the upper limit against the Belgian The election outcom e, with a narrow but franc in the IV2 per cent Benelux band. clear-cut plurality for the Christian Democratic W hen tensions developed in m any European Party, swept aside a major source of m arket currency m arkets in late January, a press report uncertainty, and a reflux of speculative funds that the Benelux band m ight be abandoned— al­ developed as soon as the first results were though immediately denied by the Netherlands known on June 21. Thereafter, news of a re­ and Belgian Governm ents— triggered largeduced balance of payments deficit for M ay and scale speculative demand for guilders and of­ a slowing in the rate of inflation lifted some ferings of Belgian francs. of the gloom surrounding the Italian econom ic To counter these pressures, the Netherlands outlook. W ith Italy’s tourist earnings becom ing Bank intervened in coordination with the N a­ seasonally strong and the various exchange tional Bank of Belgium and bought substantial controls continuing to induce a reversal of ad­ amounts of Belgian francs as well as dollars. verse leads and lags, the lira came into demand. The Dutch central bank announced a V2 per­ In view of the earlier heavy reserve losses, the centage point cut in its discount rate to 4 per Bank of Italy took advantage of the lira’s buoy­ cent and 1 percentage point reductions in other ancy at prevailing rates to absorb large amounts official lending rates. In Belgium , the authorities of dollars in the m arket. Consequently, while also took several measures to support the franc, the substantial inflows of funds continued, the including the boosting of short-term interest lira rate held steady through the end of July. rates. This forceful response, coupled with an The Bank of Italy was thus able to post reserve easing of liquidity conditions in Am sterdam and gains of $1.7 billion for June and July, even a corresponding tightening of liquidity in Brus­ after repaying in late July the full $500 m illion sels, reassured the m arket, and by early Febru­ of swap drawings on the Federal Reserve. ary the immediate strains had subsided som e­ what. By that tim e, however, the markets were alive with rumors of a possible general realignm ent NETHERLANDS GUILDER of EC currencies. In view of the strong ties Coming into 1976, the Netherlands guilder was between the econom ies of the Netherlands and bolstered by expectations of a continuation of Germany and the fact that each enjoyed a sub­ that country’s strong payments position. A sharp stantial current-account surplus, m arket partici­ rise in natural gas exports, together with a pants tended to tag the guilder as a prime recession-induced fallback in im ports, had al­ candidate for revaluation along with the Germ an ready widened the current-account surplus to mark. Consequently, as the m ark came into $1.6 billion in 1975. W ith econom ic recovery heavy dem and, the guilder also strengthened, well under way in several of the Netherlands’ joining the m ark at the upper limit of the EC major foreign m arkets, the outlook for Dutch snake and stretching the Benelux band once exports promised to be even brighter for 1976. again. The dollar m arket became unsettled, too, Sizable capital outflows were expected to con­ and the guilder rose by % of a percentage point tinue, reflecting the relatively low interest rates to a peak of $0.3781. In this atmosphere, when in Am sterdam com pared with other financial a flurry of dem and for guilders developed on centers, but not in sufficient volume to offset February 11 in the New York m arket, the Fed­ fully the current-account surplus. M oreover, eral Reserve supplem ented its offers of Germ an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 759 marks with offers of guilders, selling $19.6 Germ any, Switzerland, and the United States. m illion equivalent financed by a drawing on the M oreover, serious union opposition had swap line with the Netherlands Bank. Subse­ em erged to a proposed extension of the govern­ quently, as the immediate exchange-m arket tur­ m ent’s social contract for lim iting wage in­ bulence abated and the guilder eased back creases. In addition, higher governm ent bor­ som ewhat, the Federal Reserve purchased suf­ rowing requirem ents associated with continued ficient guilders to liquidate the swap debt by growth of public sector spending were a source early M arch. of concern to the market. At the same time, Following sterling’s drop below the $2.00 widespread press reports of disputes within the level, expectations of a broader EC exchange- governm ent coalition over a num ber of social rate realignm ent reappeared, generating re­ and econom ic issues added further to the uncer­ newed demand for guilders. By the second week tainties. of M arch, the guilder was hard against its upper Through early M ay the spot guilder therefore margin for the Belgian franc. Even though there stayed in the lower range of the EC band. was sizable intervention to defend the Benelux Against the dollar it held steady at around lim its, bringing total support since early Febru­ $0.3725, as the National Bank of Belgium ary to over $350 million equivalent, the guilder completed guilder purchases to repay com m it­ was pushed to the top of the EC band along ments incurred prior to suspension of the Bene­ with the mark. lux band. Thereafter, the guilder was left more The results of the M arch 13-14 EC Finance exposed to selling pressure that intensified after M inisters’ m eeting in Brussels had a jarring mid-M ay. effect on m arket expectations for the guilder. The rate began to soften and reached a low The Benelux joint float arrangem ent was of $0.3628 on June 1, some 4 per cent below abruptly suspended, relieving an immediate the February high, before the imm ediate selling source of speculative dem and. At the same tim e, pressure subsided. To keep the guilder away the press reported that, in the showdown that from its lower intervention lim it against the developed at Brussels, Dutch officials had re­ mark in the EC band, the Netherlands Bank jected proposals to revalue the guilder. intervened in substantial volum e, with the result By that tim e, also, technical factors were that reserves declined by nearly $ 1.2 billion weighing on the m arket, as the guilder liquidity between m id-M arch and m id-June. M oreover, created by central bank intervention, together the Netherlands Bank, following m arket devel­ with usual seasonal factors, had so eased money opm ents, raised its discount rate in two %-perm arket conditions in the Netherlands that short­ centage-point steps to 5 per cent by June 18. term interest rates there were well below those During that tim e, the Federal Reserve took the in Germ any and Belgium . Consequently, the opportunity to purchase a m odest amount of guilder cam e on offer, easing slightly against guilders ($3.6 m illion equivalent) for working the dollar but falling sharply against the mark balances. and other currencies within the EC snake. The By m id-June the Dutch m oney m arket had Netherlands Bank began to sell moderate gradually tightened, partly as a result of the amounts of dollars to cushion the decline, but heavy exchange-m arket intervention by the au­ by April 6 the guilder had slipped to the bottom thorities. M oreover, recent econom ic indicators position of the joint float. were m ore favorable, with tentative signs of During the spring, several developments improvement in industrial production and better prom pted increasingly bearish sentiment toward price figures. At the time of the end-of-June the guilder. Econom ic indicators during the first positioning in the Netherlands, therefore, a months of 1976 showed that Dutch exports had scramble for guilder balances developed, push­ leveled off and that the incipient econom ic re­ ing up m arket interest rates sharply and covery at hom e had stalled. The inflation rate prompting some covering of short guilder posi­ rem ained stubbornly high— well above those in tions in the exchange market. The guilder thus Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin □ September 1976 turned firmer against the dollar and came off moved in parallel to the com m ercial rate but the floor of the EC snake. was not under unusual strain. Although the press Thereafter, the guilder market was in better reports were officially denied, the pressure con­ balance until late in July, when the snake came tinued and intervention m ounted by both the under renewed strains as the m ovem ent into Belgian and Netherlands central banks, largely German marks becam e more generalized. At in Benelux currencies. As a result, liquidity that tim e, the Netherlands Bank again inter­ tightened in Brussels and sim ultaneously eased vened in support of the guilder within the EC in Am sterdam , raising the cost of holding posi­ band and announced a further V2-percent- tions short of francs and long of guilders and age-point increase in its discount rate to 5 Vi per thereby relieving the strain on the franc by cent, effective August 2. By the end of July mid-February. the guilder rate had recovered to $0.3708, some Bolstered by the continuing tautness in Bel­ 2lA per cent above its June low. gium ’s local m oney m arket, the franc was not immediately caught up in the m arket turm oil surrounding other European currency markets early in M arch. But by M arch 11, as traders BELGIAN FRANC came once again to expect an adjustm ent of EC Late in 1975, Belgium ’s balance of payments parity relationships, speculative selling of Bel­ had shifted into deficit as a result of a slowdown gian francs re-em erged. The spot rate was driv­ in exports and an increased outflow of long-term en back to its lower lim it against the guilder, capital. Dom estically, the econom y was slow where it again required heavy support. to join in the recoveries already getting under The announcem ents following the EC Fi­ way in other countries. In addition, Belgium ’s nance M inisters’ m eeting over the M arch 13-14 inflation rate, while declining to below 10 per weekend only intensified the selling of Belgian cent, was still high enough to generate market francs. News that the French franc had been concern that it could thwart a sustained recov­ withdrawn from the EC snake and that the ery. There was further uneasiness that the gov­ Belgian and Netherlands Governm ents had sus­ ernm ent had not reached agreem ent with the pended the Benelux currency arrangement gen­ trade unions for m odifying Belgium ’s wage erated expectations that the Belgian franc would indexation system , a m echanism many ob­ be either devalued or cut loose from the joint servers felt was helping to weaken the com peti­ float. Dealers therefore drove the franc almost tiveness of Belgian exports. immediately to the bottom of the snake, which Against this background, the commercial was then being pulled up against the dollar by Belgian franc, trading around $0.025520 vis-a- the rise of the Germ an mark. vis the dollar in early January 1976 had fallen The Belgian Governm ent, however, quickly to near the bottom of the EC snake and had signaled its determ ination to keep the Belgian also settled at the lower limit of the separate franc in the snake at its existing parity to prevent 1 Vi per cent Benelux band with the Dutch a falling exchange rate from aggravating do­ guilder. There was no particular pressure against mestic inflation. As the Belgian franc came the franc, however, until late in January when, heavily on offer against the mark at the lower amidst generalized speculation over European limit of the snake, the National Bank of Belgium currency relationships, newspaper reports sug­ intervened heavily between M arch 15 and gesting that the Benelux currency arrangement M arch 19, selling large amounts of marks while m ight be disbanded set off heavy selling of the Germ an Federal Bank purchased a large Belgian francs. The selling reflected adverse volume of Belgian francs in Frankfurt. shifts in commercial leads and lags and was M oreover, to convince the market of its re­ therefore concentrated in the market for com ­ solve to support the franc, the Belgian authori­ mercial francs. ties took further steps to raise the cost of holding The financial franc, which floats freely, speculative positions against the franc. The N a­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 761 tional Bank announced a 1 percentage point hike while falling off with the other European cur­ in its discount rate to 7 per cent, effective M arch rencies against the dollar. 18, and restricted access to its short-term lend­ Thereafter, dealing in francs was generally ing facilities. In addition, it required com m er­ quiet and well balanced through early July. Only cial banks to deposit a fixed percentage of their on two sucessive Fridays between late M ay and funds in government securities. These measures early June was trading tem porarily unsettled by were followed up with public affirmations on a spillover of pressure directed at the Dutch the part of a number of Belgian officials of their guilder. In each case, the National Bank of determination to guarantee the existing Belgian Belgium quickly countered with small sales of franc parity. dollars. In m id-July, however, as the market By M arch 22, the com bined impact of these began once again to reassess existing European various liquidity-tightening measures had taken currency relationships, pressures on the Belgian hold. Overnight rates in the Euro-Belgian franc franc were renewed, and the franc fell to its market were bid as high as 200 per cent per lower lim it against the Germ an mark. The N a­ annum , and the cost of rolling over short franc tional Bank resum ed its intervention and also positions became more than m ost speculators announced a discount rate increase of 1 per­ were willing to bear. Thus, in a sharp 2-day centage point to 8 per cent, effective July 26. turnaround, the franc jum ped over 2 per cent Subsequently, the Belgian franc was dragged up against the dollar and traversed the entire width by the rise of the Germ an m ark to trade by the of the EC snake before easing back to trade month-end at $0.025527, close to its early-Febaround $0.025600, fairly com fortably within the ruary level against the dollar. joint float. During the 6 months under review, the Fed­ By early April, industrial production in Bel­ eral Reserve continued to make small frequent gium was rising more strongly than anticipated purchases of Belgian francs against swap com ­ at the beginning of the year, but the pace of m itments incurred prior to August 1971. These domestic price increases rem ained worrisomely acquisitions, totaling $177.3 m illion equivalent, high. The Belgian cabinet agreed on budget cuts were used to repay a total of $170.5 million on April 5 to reduce dom estic inflation further equivalent of such com m itm ents, reducing the and to provide support for the exchange rate. outstanding swap debt to $82.4 m illion, and to In addition, the authorities followed up their add to balances. m id-M arch m easures by strengthening the con­ trols on resident foreign exchange transactions. The cum ulative effect of these various actions JAPANESE YEN was to trigger a gradual reversal of previously adverse leads and lags. Early in 1976 the balance of m arket sentim ent As these reflows persisted throughout April had swung back in favor of the Japanese yen, and M ay, the Belgian authorities were able as an unexpectedly rapid im provem ent in the gradually to ease their m id-M arch monetary balance of paym ents outweighed lingering con­ restrictions, reducing some interest rates to pre­ cern over the sluggishness of Japan’s econom ic crisis levels and, in early June, lifting the special recovery. The current account had returned to regulations requiring com m ercial banks to surplus, as export shipments of automobiles and m aintain specific levels of investments in gov­ a few other items expanded sharply in response ernm ent securities. In addition, the National to the inventory build-up in the United States Bank com pleted its repaym ent of Dutch guilder and elsewhere while Japan’s im port growth re­ comm itm ents incurred prior to suspension of the mained stagnant. M oreover, Japan enjoyed siz­ Benelux band and purchased sufficient German able inflows of capital as short-term interest marks to liquidate its commitments in that cur­ rates, though down from their m id-1975 highs, rency as well. Even so, the commercial franc were still well above com parable interest rates continued to hold in the middle of the EC snake, in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin □ September 1976 The resulting interest rate differentials favor­ improvement could be sustained. The current ing Japan stimulated large foreign purchases of sharp upsurge in exports was concentrated in Japanese Governm ent securities, not only on an only a few of Japan’s export industries. A uncovered basis but also on a covered basis, slowdown in consumer spending, together with since the forward yen was frequently at a pre­ increased talk of import restrictions in m any of mium. M oreover, taking advantage of favorable Japan’s foreign m arkets, threatened to forestall m arket conditions, Japanese corporations were any spillover of dem and to other export sectors active in borrowing in the European and New and to blunt sales of those exports currently in York bond markets as well as through foreign strongest dem and. M oreover, figures for the first currency-denom inated loans from Japanese quarter pointed to a renewed strong advance in branches of foreign banks. Conversions of these output in Japan and a decline in inventories of foreign borrowings gave an additional lift to the im ported m aterials, suggesting that Japan’s im ­ yen in the exchanges. ports would soon expand as well. Coming into February 1976, therefore, the This more skeptical outlook helped bring the yen had advanced 1 per cent from its Decem ber m arket for the Japanese yen into better balance 1975 lows, and it rose another 1 per cent to after m id-April. Shortly thereafter, interest rates $0.003333 (300 yen) by midmonth. In M arch in the United States began to firm while rates the yen was again well bid, largely in response in Japan eased. As the previously favorable to uncertainties in the European currency m ar­ interest rate differentials narrowed and eroded kets. M eanwhile, a number of reports suggested incentives for foreigners to maintain their short­ that several overseas m onetary authorities had term investments in Japan, some of the earlier increased their yen holdings. W ith these reports, inflows were reversed. During subsequent market uncertainty over the durability of exist­ weeks, the Bank of Japan intervened nom inally, ing exchange relationships in general stimulated and then only to counter a brief flurry of dem and demand for yen by both residents and nonresi­ for yen in early M ay. Otherwise, the rate eased dents to cover future needs. back on its own, slipping 1 per cent to around By early April a scramble for yen developed, $0.003330 (300.3 yen) by June 4. Later that as Japanese banks and trading companies rushed month the Japanese authorities took the oppor­ to cut back their dollar positions, Japanese cor­ tunity to announce an easing of some foreign porations converted their foreign borrowings, exchange controls— covering travel allowances and nonresidents responded to an increased pre­ and outward paym ents— that had previously mium on the forward yen by m oving more funds been tightened in response to the oil crisis, but into Japanese securities. The spot rate jumped this announcem ent generated no immediate re­ in hectic trading to a peak on April 8 of action in the m arket. $0.003365 (297.2 yen), some 3 per cent above In late June, press reports out of the econom ic its m id-Decem ber low. Throughout this period summit at Puerto Rico suggested that officials the Bank of Japan met the sporadically heavy of other countries had raised questions concern­ demand for yen with occasionally large purchases ing Japanese foreign exchange policy. Subse­ of dollars in Tokyo to m oderate the rise and to quently, following release of further strong trade m aintain orderly markets. These purchases, figures for M ay, the Japanese press carried re­ especially in February and April, accounted for ports from a governm ent source indicating a the bulk of Japan’s $2.1 billion increase in re­ readiness to accept a further appreciation of the serves in the first 4 m onths of this year, revers­ yen. In this atm osphere, the yen was bid upward ing the $1.8 billion loss in the second half of once again, reaching as high as $0.003420 1975. (292.4 yen) toward m id-July, before renewed Although Japan’s export performance in the intervention by the Bank of Japan and a prom pt first quarter had far outstripped even the most denial of the press reports quieted the market. optim istic forecasts, by mid-April m any m arket Thereafter, in m ore subdued trading, the yen participants had begun to question whether this settled back som ewhat to $0.003412 (293.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 763 yen) by the m onth-end. At this level the yen ments was, on balance, a buyer of dollars, and was, on balance, about 3V2 per cent higher than official reserves increased during the first 2 early-February levels. months by $551 m illion. From early M arch through late M ay, by con­ trast, the m arket for Canadian dollars was m ore nearly balanced. Day-to-day m ovem ents in the spot rate were at times quite large, as the market CANADIAN DOLLAR adjusted to the flow of continuing conversions, In 1974-75, with Canada’s econom ic slowdown announcements of yet m ore new issues, or decidedly shallower than the recessions in other rumors of OPEC shifts into Canadian dollarmajor industrial countries, domestic demand denom inated assets. In addition, dealers were remained relatively buoyant, serious inflation­ sensitive to signs of possible changes in interest ary pressures persisted, and the current-account rate differentials between Canada and the United balance moved into deeper deficit. During the States that m ight alter incentives to borrow second half of 1975, this deficit was m ore than abroad. offset by an increasingly heavy volume of long­ In early M arch, in reaction to a slight firming term foreign borrowings, which totaled $3.2 in U .S. m oney m arket rates, the Canadian dollar billion. eased before snapping back just a couple of days As econom ic activity in Canada gained more later after the Bank of Canada had raised its m om entum from the pick-up of activity in the discount rate from 9 per cent to 9lh per cent. United States, the Canadian authorities moved But, on balance, by late M ay the Canadian to check cost-push pressures by introducing a dollar had gained only fractionally to the $1.02 3-year anti-inflation program , which included level, as part of the dem and arising from con­ wage and price controls, and announced targets tinued conversions of foreign borrowings was to contain the growth in m onetary aggregates. increasingly taken out of dealers’ own positions. But the dem and for credit rem ained strong, and In early June, however, m arket sentiment Canadian interest rates did not follow the de­ became decidedly m ore bullish toward the Ca­ clines in other industrial countries late in the nadian dollar. The dom estic recovery seemed year. In response to the lower cost and greater to be well under way and the rate of price availability of funds abroad, provincial authori­ advance had abated to 6 per cent under the ties, public utilities, and private enterprises in­ anti-inflation program . The M ontreal Olympics creasingly tapped foreign m arkets early in 1976, were expected to generate substantial tourist raising inflows to $3 billion for the first quarter earnings. The leveling-off of U .S. short-term alone. interest rates was seen as a positive factor for Thus, while the m arket rem ained hesitant the Canadian dollar. And then a renewed burst about the longer-term im plications of the more of reported foreign issues by Canadian interests rapid wage inflation in Canada than in the caught many dealers by surprise. Consequently, United States, dealers expected that inflows of m arket participants began to bid progressively long-term capital could cover by far the cur­ more heavily for Canadian dollars, in part to rent-account deficit and provide a strong under­ cover the new large-scale conversions expected pinning for the exchange rate in 1976. during the summer. By June 24 the spot Cana­ Consequently, the Canadian dollar continued dian dollar rate had been propelled to a 2-year the steady advance that had begun in August high of $1.0388, with the Bank of Canada on 1975. Buoyed by conversions of several large balance buying substantial amounts of dollars new borrowings as well as occasionally heavy to m oderate the rise. commercial dem and for grain purchases, it was By this tim e, the rise of the Canadian dollar bid up to $1.01% by the end of February. The had attracted the attention of m any more market Bank of Canada, which continued to intervene participants abroad. Professional position taking to moderate day-to-day exchange-rate m ove­ increased, exchange-rate m ovem ents for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Federal Reserve Bulletin □ September 1976 Canadian dollar becam e more volatile, and each volume of scheduled placem ents. M oreover, the swing in the rate triggered a larger flurry of eventual turnaround in tourist receipts, follow ­ activity. In the face of these unsettled m arket ing the end of the Olym pics, weighed on the conditions, the Bank of Canada operated in­ market. Consequently, the Canadian dollar creasingly forcibly on both sides of the market drifted back in a tendency that began to accel­ to maintain orderly trading conditions until erate late in July as dealers started to cut back m arket activity slackened by early July. their own positions. By the m onth-end, the spot Subsequently, m any m arket participants came rate had declined to $1.02% , still some 3 V2 per to feel that the Canadian dollar had risen to cent above early-1976 levels. Although the unrealistically high levels. In addition, most of Bank of Canada was a net seller of dollars in the conversions for the large borrowings placed July, its net m arket operations contributed to in July had already been covered, and the cal­ a $467 m illion increase in Canadian official endar of upcom ing issues indicated a reduced reserves since the beginning of the year. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

765 Statements to Congress Statement by Arthur F. Burns, Chairman of the During the course of the recovery, the rate Board of Governors of the Federal Reserve of econom ic expansion has been influenced by System, submitted to the Budget Committee of the pace of inventory investment. Between the the U.S. Senate in response to a committee second quarter of last year and the first quarter request for a report on the condition of the of this year, the shift from extensive liquidation national economy and the course of monetary of inventories to moderate, accum ulation ac­ and fiscal policy, August 23, 1976. counted for about 45 per cent of the increase in the physical volum e of production. But in I am pleased to report to the Senate Budget the second quarter of this year, inventory in­ Committee on the condition of the national vestm ent no longer added significantly to the econom y and the course of monetary and fiscal growth of physical output. policy. This is the m ain reason for the recent slow­ The econom ic expansion now under way is down in the rate of econom ic expansion. In real well into its second year. By any reasonable term s, the gross national product rose at an yardstick, the N ation’s econom y has experi­ annual rate of 4lA per cent in the second quarter, enced a substantial recovery. In the second compared with 8 per cent over the preceding quarter of this year, the physical volume of total three quarters. The lower rate in the second production was SV2 per cent above its trough quarter reflects, besides inventory adjustm ents, in the first quarter of 1975. M oreover, the com ­ the recent pause in consum er spending. After bined output of our factories, m ines, and power a rapid advance from last Decem ber through this plants has risen about 17 per cent since M arch M arch, the trend of retail sales flattened out. of last year. Temporary pauses of this kind are not uncom ­ W idespread expansion of econom ic activities m on during periods of cyclical expansion. W e has led to material strengthening in the demand may reasonably expect significant gains in retail for labor. Total em ploym ent across the Nation trade to resume relatively soon. The basic de­ has risen almost 4 m illion from its low in M arch terminants of consum er spending are clearly 1975, and is now IV2 m illion above the previous favorable: the num ber of persons at work is peak. The average length of the factory w ork­ continuing to rise, real incomes of fam ilies are week has also risen, and the unem ploym ent increasing, and the liquidity position of con­ rate— though still deplorably high— is apprecia­ sumers is improving. Furtherm ore, as optimism bly lower than in the spring of last year. continues to spread, consum er expenditures The gains in production and em ploym ent should tend to grow m ore rapidly than the have been accom panied by larger personal in­ disposable income of consum ers. In all likeli­ comes and rising consum er purchasing power. hood, as the recovery proceeds, consum er buy­ The average level of disposable income per ing will rem ain a major source of strength in capita has risen in real terms by 6V2 per cent the econom y. since early 1975, and last quarter it was IV2 Another and more basic source of stimulus per cent above its previous peak. Business to econom ic activity over the next year or two profits, too, have rebounded as the workshops can be expected from business outlays for new of the econom y returned to more efficient levels plants, m achinery, and other equipm ent. Busi­ of operation. ness capital spending typically joins the recov­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin □ September 1976 ery process later than other sectors of the econ­ units are appreciably lower now than they were omy. But as utilization of capacity increases and a year ago. profits im prove, business firms typically move Our trade balance with other countries may ahead more boldly with their capital expenditure also show some im provem ent as the recovery programs. Although such a developm ent has proceeds. Imports of industrial supplies and been somewhat delayed in the present instance, consumer goods will move up further as the the traditional pattern is again emerging. expansion of our econom y continues to cum u­ Thus, major indicators of business capital late. But the outlook for our export trade is also spending are pointing upward. Production of brightening. Although econom ic recovery in business equipm ent has increased steadily since other industrial countries began later than in our late last year. New orders for nondefense capital own, the pace of expansion in W estern Europe goods rose strongly in July, the seventh consec­ and Japan has been gathering m om entum . M a­ utive monthly increase. Contract awards for terial strengthening of demands for Am erican commercial and industrial construction are now machinery and other products is therefore to be m oving up again. Also, recent surveys indicate expected. some further strengthening of business plans for Activity in all major sectors of the private capital expenditures. econom y thus seems poised for further ad­ A rising level of outlays for plant and equip­ vances. The recovery process has thus far been ment creates a need for larger inventories of well balanced, and the state of confidence has m aterials, component parts, and other supplies been steadily gaining. There have been few in the durable goods trades. Thus, while inven­ signs of the speculative excesses that often de­ tories in some nondurable goods industries have velop in the course of a business-cycle expan­ been restored to levels that are adequate to meet sion. Conditions in the nonfinancial sector of current rates of sales, renewed accum ulation of the econom y thus rem ain favorable for contin­ inventories in the durable goods sector is just ued growth well into the future. beginning. Total new orders received by pro­ Conditions in the financial markets are also ducers of durable goods have been rising conducive to continuance of econom ic expan­ strongly, and rebuilding of their stocks should sion. Interest rates usually begin to rise at about be a stimulus to production for some time. the time when general business activity turns A revival of hom ebuilding activity has been up. In the present instance, however, m ost in­ contributing to general econom ic expansion terest rates are at or below their levels in the since the spring of 1975. New housing starts spring of 1975, when the econom ic recovery declined somewhat last m onth, but permits is­ began. For exam ple, the yield on 3-month sued for new residential buildings— a less vola­ Treasury bills reached a low for the year of tile indicator— advanced to the highest level in around 5XA per cent in M ay 1975, and is now more than 2 years. about 10 basis points lower. The rate on new W ith mortgage credit in ample supply in issues of high grade corporate bonds in M ay practically all parts of the country, and with 1975 was 9lh per cent; now, that rate is down sales of new and existing houses once again to around 8V2 per cent. rising, a gradual further advance in hom ebuild­ The m ain cause of the unusual behavior of ing activity appears to be in prospect. To be interest rates during this recovery has undoubt­ sure, weakness in the multifam ily sector has edly been the lessening of inflationary fears, and been limiting the over-all improvement of resi­ the consequent reduction in the inflation pre­ dential building activity. Construction of apart­ mium that got built into interest rates— particu­ ment houses has been held down by previous larly, the long-term rates. overbuilding, lagging rents, and high con­ The financial climate that has prevailed during struction costs. However, the problems of the the recovery has perm itted lenders and bor­ multifam ily sector are gradually being re­ rowers alike to strengthen their financial condi­ solved— in particular, vacancy rates for rental tion. The liquidity position of savings banks and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 767 savings and loan associations, for exam ple, has eral budget has been in deficit in every fiscal improved markedly. M oreover, the flow of sav­ year but one. Over that 10-year span, the total ings to these institutions has rem ained abundant, deficit in the Federal budget— including offand they have continued to increase their m ort­ budget agencies and Governm ent-sponsored en­ gage lending. The outstanding m ortgage loan terprises— has cum ulated to over $280 billion. commitments of savings and loan associa­ These huge and persistent deficits have been tions— the leading suppliers of home mortgage directly responsible for a substantial part of the credit— are now close to the highest dollar fig­ inflation problem. ure on record. In the early 1970’s, the underlying inflation­ Commercial banks have also rebuilt their li­ ary trend caused by lax financial policies was quidity, and the condition of the banking system greatly aggravated by a variety of special fac­ has been further strengthened through wide­ tors— poor crop harvests here and abroad in spread additions to retained earnings and some 1972 and 1973, a worldwide-boom in econom ic new issues of com m on stock. activity, devaluation of the dollar in interna­ Our N ation’s business enterprises have like­ tional exchange m arkets, and an enormous run­ wise taken advantage of the prevailing financial up in prices of gasoline, fuel oil, and other climate to improve their financial condition. energy items. By 1974, these special factors Corporations issued a huge volume of long-term combined with the underlying inflationary trend bonds during 1975, and they used much of the to set off an explosion of the general price level. proceeds to repay short-term debt and to acquire Our Nation has made notable progress since liquid assets. This year, they are still finding then in reducing the rate of inflation. The in­ long-term funds readily available. During recent crease of consum er prices came down from 12 m onths, m any lower-rated firms have found a per cent in 1974 to 7 per cent in 1975. Over more receptive public m arket for their debt the first 4 months of this year, the rise in issues, and others have met their need for long­ consumer prices m oderated further, to a 3% per term funds through private placem ents with life cent annual rate, reflecting a tem porary decline insurance companies and other institutional in the prices of food and fuel. In the past 3 lenders. Besides this, an improved stock market m onths, however, retail prices of food and fuel has made it m uch easier for corporations to raise have again been increasing, and the annual rate equity funds for financing new investment pro­ of advance in consum er prices has stepped up grams or for restoring capital cushions. to 6V2 per cent. Thus, it appears that the under­ These accom plishm ents in financial m arkets lying rate of inflation has not dim inished since indicate, I believe, that the course of m oderation m id-1975, and that it may still be about 6 or in m onetary policy pursued over the past year 7 per cent. Any such rate of inflation constitutes has aided the process of recovery in econom ic a serious threat to the econom y, and elim ination activity. of our disease of inflation must therefore rem ain W e at the Federal Reserve rem ain deeply a major objective of public policy. concerned about the high level of unem ploy­ As I have indicated in recent testim ony before ment that still exists in our country. W e recog­ the House Banking and Currency Com m ittee, nize the pressing need for the Nation to regain the objective of m onetary policy now is to more prosperous econom ic conditions. W e also support further growth of output and em ploy­ recognize, as thoughtful Americans generally ment, while avoiding excesses that would ag­ do, that lasting prosperity will not be achieved gravate our underlying problem of inflation and until our country solves its chronic problem of create trouble for the future. inflation. At its m eeting in July, the Federal Open The inflation that is still damaging our econ­ M arket Committee projected growth ranges of omy and troubling our people began over a the monetary aggregates for the year ending in decade ago— largely as a consequence of loose the second quarter of 1977. The ranges differ fiscal policies. Over the past 10 years, the Fed­ only a little from those announced last M ay. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin □ September 1976 For M x, the narrowly defined money stock that of the Federal deficit is desirable so that savings includes only currency and dem and deposits, the may becom e sufficiently available for m uchrange of 4% to 7 per cent was retained. For needed private investm ent and so that renewed M 2, which includes also savings and consumer- inflationary pressures m ay be avoided. type time deposits at com m ercial banks, the This committee has played a highly con­ upper boundary of the range was reduced by structive role over the past year in alerting a half of a percentage point. For M 3, a still members of the Congress, and also the general broader measure of m oney balances that in­ public, to the urgent need for better control over cludes also the deposits of thrift institutions, the Federal expenditures. The essential task of this upper boundary was brought down by a full committee now, I believe, is to persuade the percentage point. Consequently, the new range Congress to proceed very prudently with tax is IVi to 9V2 per cent for M 2, and 9 to 11 per reductions and to hold expenditures for fiscal cent for M 3. These small downward adjustments 1977 below the levels specified in the First in the projected growth ranges for M 2 and M 3 Concurrent Resolution. M oreover, this com m it­ were needed to achieve consistency with the tee and the Congress should be actively seeking projected ranges for M x. ways to restore a balanced budget in the near I have advised the Congress repeatedly that future. the rate of m onetary expansion in our country Prudent m onetary and fiscal policies are es­ will have to be lowered gradually in order to sential at this time in order to avoid a rekindling be consistent with restoration of general price of inflationary fires as our econom y returns to stability. The Federal Reserve has taken some higher levels of production and employment. small, but prudent, steps in that direction over Our Nation would benefit, however, if the tra­ the course of this past year. Thus, our present ditional tools of econom ic m anagem ent were longer-run projected ranges for the principal supplem ented by structural policies designed to monetary aggregates are all somewhat lower enhance the prospects for returning to full em ­ than a year ago. Further steps to moderate the ployment without releasing a new wave of in­ pace of m onetary and credit expansion will be flation. required as the econom y returns to higher levels There is a clear need in our country for a of resource utilization. larger volume of business capital investment. Let me assure this committee that the Federal An overhaul of the structure of Federal taxation Reserve is firmly com m itted to a course of could prom ote this objective and thereby hasten monetary policy that will accommodate an improvements in productivity. eventual return to general price stability. That Governm ental practices and programs affect­ is, I believe, the principal contribution that we ing labor m arkets have to be reviewed in any at the Federal Reserve can m ake to the restora­ serious search for lasting measures to reduce tion of a lasting prosperity. unem ploym ent. For exam ple, the Federal m ini­ M onetary policy— no m atter how well de­ mum wage law is still pricing many teenagers signed and im plem ented— cannot alone restore out of the job m arket, and our present program price stability and prosperous econom ic condi­ for unem ploym ent com pensation may be pro­ tions in our country. M oderation in the course viding benefits on such a generous scale as to of fiscal policy is also needed. The deficit in blunt incentives to work. W e would also benefit the Federal budget is m uch too high— especially from more effective job banks and more realistic when the operations of off-budget agencies and training program s. Governm ent-sponsored enterprises are taken Structural changes in other areas are also into account, as they should be. It is of the needed to enhance the prospects for expanded utm ost importance that the Congress and the em ploym ent, while at the same time reducing administration cooperate to m aintain tight con­ the pressures on costs and prices. W e need to trol over Federal expenditures. At the present gather the courage to reassess the nature and stage of the business cycle, a substantial decline enforcement of our laws directed against re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 769 straint of trade by business firms; also the the restoration of general prosperity. Progress various restrictions on entry into the profes­ in this field is, I believe, a matter of urgency. sions, the wage and em ploym ent standards in Our Nation has tolerated high rates of unem ­ the Davis-Bacon Act, the proper role of trade ploym ent and of inflation m uch too long. But unions in the public sector, the m onopoly of our Nation cannot reach the goal of full em ­ first-class mail by the Postal Service, and the ploym ent by pursuing fiscal and m onetary poli­ mass of governmental regulations that impede cies that rekindle inflation. W e therefore need the competitive process and run up costs for to move ahead prom ptly on structural policies business enterprises. that prom ise to strengthen com petitive forces in There are numerous structural m easures be­ our m arkets and to open new opportunities for sides those I have m entioned that m ight aid in expansion of production and em ploym ent. □ Statement by Stephen S. Gardner, Vice Chair­ Federal supervision, regulation, and exam ina­ man, Board of Governors of the Federal R e­ tion of foreign bank operations that is fairly serve System , before the Subcommittee on Fi­ comparable to the regulation of dom estic banks. nancial Institutions of the Committee on Bank­ There are com pelling reasons to accom plish ing, Housing, and Urban Affairs, U.S. Senate, these objectives at this time. Foreign banks have August 31, 1976. grown from a curiosity in U .S. money centers to an increasingly important part of our financial I am pleased to appear before this com m ittee, system. Their activities are diverse. No longer on behalf of the Board of Governors of the can they be characterized as simply wholesale Federal Reserve System, to offer the Board’s banks dealing principally in international trans­ strong support for the enactm ent of H .R. 13876, actions. Our large and powerful econom y, the the “ International Banking Act of 1976,” dur­ widespread use of the dollar in international ing this session of the Congress. financial and commercial transactions, the As the committee is aware, the Board’s leg­ growing investm ent by foreigners in U .S. in­ islative recom m endations for the regulation of dustries, our huge consumer m arkets for credit foreign banks in the United States were intro­ and goods, and the exceptional breadth and duced in the Senate as S. 958. In January, Vice capacity of our capital markets and securities Chairm an M itchell testified before this com m it­ exchanges— all are powerful inducements to tee and submitted a com prehensive statement of foreign banking institutions to establish opera­ the Board’s objectives and reasons for recom ­ tions here. The developm ent of foreign banking mending the enactm ent of foreign bank legisla­ in the United States has grown at a dramatic tion. rate in the last few years, as indicated in the In supporting the present bill, I would like Statistical Appendix to m y statem ent,1 and such to discuss certain differences between H .R. developm ent is continuing apace. Reports 13876 and S. 958 and to suggest some ways available for the m ost recent period indicate that that H .R. 13876 m ight be usefully amended. banking assets of foreign banking institutions In recom m ending legislation to regulate here have increased almost 10 per cent in the foreign banks operating in the United States, 9 months ending June 30, 1976. the Board has been guided by two basic public I hope this period of rapid expansion has not policy considerations. The first is the adherence by our Federal Governm ent to the principle of 1 The appendixes to this statement are available on national treatm ent, or nondiscrim ination, to­ request from Publications Services, Division of Admin­ ward foreign banks operating in this country. istrative Services, Board of Governors of the Federal The second is the establishm ent of a system of Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin □ September 1976 been based only on the existing lack of Federal are differences between it and the Board’s bill regulation because that abnormality has created that I would like to bring to the attention of certain competitive advantages for foreign the committee. These differences concern (1) banks, the consequences of which are sure to interstate banking, (2) deposit insurance, (3) be enlarged in time. The United States is prac­ monetary policy controls, (4) grandfathering, tically alone among major industrial nations in and (5) Federal econom ic policy review of having no national oversight of foreign banks foreign bank operations. W e have some sug­ within its borders, despite the tradition of care­ gestions in these areas that we hope will be ful and extensive regulation that we apply to useful to the committee in its deliberations. all domestic depositary institutions. This is an incongruous situation. Further, the lack of Federal legislation estab­ INTERSTATE BANKING lishing a national policy toward operations of foreign banks creates the disadvantage of un­ The interstate branching provisions of both H .R. certainty for these institutions. A fair and co­ 13876 and S. 958 are consistent with the prin­ herent national regulatory structure would per­ ciple of national treatm ent since under each mit foreign banks already here and those that proposal foreign banks would be given no wish to locate here some assurance of stability greater branching rights than comparable do­ in which to plan their operations, both now and mestic banking institutions. The Board believes, in the future. It is apparent that the Congress however, that it would be preferable to use the considers Federal banking regulation to be a form ulation suggested in S. 958. timely and important subject for review. The Unlike Section 5 of H .R. 13876, the Board’s best approach would be to incorporate foreign bill does not subject foreign banks to the inter­ banks into the existing regulatory structure so state branching restrictions of the M cFadden that any future changes that m ight be made by Act; rather, it provides in Section 3(g) that a the Congress would apply to foreign as well as foreign bank would be able to establish a branch to domestic banks. Delays in placing foreign or agency outside of its hom e State only if a banks on a similar footing nationally with our State bank organized under the laws of its home domestic institutions can only increase the pos­ State could do so. The M cFadden Act is, of sibility of future disruptions to their operations course, undergoing a thorough study by this in this country. committee. Adoption of the provision in S. 958 H .R. 13876 would substantially accomplish would have the advantage of avoiding any ap­ both of the goals addressed by the Board in its parent prejudgm ent of the outcome of that own foreign bank legislation. First, H .R. 13876 study. implements the principle of national treatment I would also like to note that H .R. 13876 by amending existing banking laws to provide does not apply any interstate restrictions to the foreign banks with generally the same opportu­ establishm ent of agencies by foreign banks be­ nities in this country as are available to domestic cause agencies cannot accept deposits. Under banks. Further, it would subject them generally S. 958, agencies are treated the same as to the same rules and regulations that apply to branches for purposes of interstate restrictions. the operations of their large domestic bank At present, the activities of agencies measured com petitors. Second, H .R. 13876 provides for in terms of both total assets and loans are greater a Federal presence in the exam ination, supervi­ than the activities of branches, as agencies are sion, and regulation of foreign banks by per­ the preferred form of entry for many foreign m itting the establishm ent of Federally approved banks. M oreover, though agencies do not accept agencies and branches and by giving the Board deposits, their credit-balance accounts serve the authority to impose monetary and bank many of the same functions as deposits, and supervisory controls on foreign bank operations. agencies perform many other commercial bank­ W hile the Board supports H .R. 13876, there ing activities that are carried on by branches, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 111 such as the making of commercial loans. In the same m onetary and supervisory controls that view of the size and scope of their operations, apply to comparable U .S. banks. Section 7 of the Board thus believes that the Congress should H .R. 13876 would largely accom plish that ob­ consider subjecting agencies to the same inter­ jective without requiring formal mem bership in state restrictions that would apply to branches. the Federal Reserve System— a solution that is acceptable to the Board. One concern rem ains, however, since Section 7 would not subject State-chartered subsidiaries of foreign banks to DEPOSIT INSURANCE the Board’s m onetary controls, even though Section 6 of H.R. 13876 requires a surety de­ their parent banks may have worldwide assets posit or pledge of assets by a foreign bank to greater than a billion dollars. The Board be­ protect U .S. depositors in lieu of Federal D e­ lieves that large foreign banks entering our posit Insurance Corporation (FDIC) insurance. m arkets should be subject to the same disci­ The Board’s earlier recom m endation in S. 958 plines of the central banking authority that are contemplated the extension of FDIC insurance imposed on com parable dom estic banks, no to both branches and agencies of foreign banks. m atter which form or forms of organization they Section 6 of H .R. 13876 was adopted in an m ay choose for doing business in this attempt to meet objections by the FDIC to the country— branch, agency, or subsidiary. By not extension of deposit insurance to branches and covering subsidiaries, Section 7 of H .R. 13876 agencies of foreign banks. Since passage of could result in an anomalous situation where H .R. 13876, questions have been raised about part of a foreign bank’s operations would be the feasibility and effectiveness of this proposal. subject to m onetary controls and another part Surety deposits or pledges of assets could prove would not— for exam ple, a foreign bank that significantly more costly to the covered institu­ maintains both a nonm em ber subsidiary bank tions than the FDIC insurance available to do­ and branches or agencies. mestic banks. Furtherm ore, such a system may not assure the same degree of protection to small depositors as that afforded by FDIC insurance. GRANDFATHERING Our system of deposit insurance is more highly developed, more effective, more ac- Section 8 of H .R. 13876 conforms in large tuarially sound, and m ore protective of deposi­ measure to the Board’s own proposals by grant­ tors than those existing in other industrialized ing perm anent grandfathered status from the countries. The Board believes that it would be prohibitions of the Bank Holding Com pany Act unwise not to make use of this insurance system, to m ost nonconform ing, nonbanking activities which has effectively protected U.S. depositors engaged in by foreign banks on or before D e­ over some 40 years. It would seem that the cem ber 3, 1974 (the original date of introduction FDIC should be able to propose a plan that of the Board’s bill). The exception to this posi­ would provide both comparable Federal insur­ tion in Section 8 relates to the activities of ance for deposits at foreign bank offices and securities affiliates of foreign banks. appropriate safeguards lim iting the FDIC fund’s The Board continues to prefer perm anent exposure. grandfathering of the securities affiliates of foreign banks in this country as the fairest solution and as one that minimizes possible retaliation against U .S. banks abroad. As noted M ONETARY POLICY CONTROLS in the House report on this bill, the securities A prim e objective of the Board in submitting issue is a difficult one involving the balancing its proposal to regulate major foreign banks in of m any sensitive national interests. W e have the United States was to place this increasingly concluded that the potential adverse repercus­ important segm ent of domestic banking under sions of divestiture outweigh any potential ben­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Federal Reserve Bulletin □ September 1976 efits and that ample precedents exist for perm a­ 4(c)(9) of the Act to prevent the nonbanking nent grandfathering. prohibitions of the Act from unnecessarily in­ terfering with essentially foreign shareholdings. For exam ple, the Board has adopted a regulation FEDERAL ECONOM IC that autom atically exem pts all noncontrolling POLICY REVIEW OF investments of foreign bank holding com panies in foreign nonbanking com panies from the pro­ FOREIGN BANK APPLICATIONS hibitions of the Act, even if such nonbanking In comparing the provisions of Section 9 of companies are directly or indirectly engaged in H .R. 13876 with Section 25 of S. 958, the business in the United States, so long as such principal difference is our recom m endation that foreign companies derive the m ajority of their Federal officials charged with the administration business from outside this country. of foreign econom ic policy be given the right The Board has refrained from granting ex­ to disapprove the entry of a foreign bank if emptions under Section 4(c)(9) only in cases foreign policy or some similar national interest where it was clear that the U .S. nonbanking dictates such action. W e do not advocate, nor operations involved would give a foreign bank see the necessity for, screening or detailed holding com pany a significant com petitive ad­ guidelines and policy pronouncem ents. Bank vantage over domestic banking institutions in regulators can adm inister that chartering re­ this country. In this regard, I think it is im por­ sponsibility. Rather, we believe that there tant to quote a provision in Chairman Burns’ should be some authority in Governm ent (other previous testim ony on this issue before the Sen­ than the bank regulatory agencies) that would ate banking committee in 1970: make a determ ination on national interest factors “. . . [W]e believe that bank holding com­ based on our relations with particular countries. panies that are principally engaged in bank­ W e therefore note this point for the com m ittee’s ing abroad should be allowed to retain inter­ ests in foreign-chartered nonbanking com­ consideration. panies that are also principally engaged in business outside the United States. We do not believe Congress intended the Act to be AM ENDM ENT applied in such a way as to impose our ideas of banking upon other countries. To do so REGARDING FOREIGN might invite foreign retaliation against our N O NBANK OPERATIONS banks operating abroad, to the detriment of the United States. The provisions of the House-passed bill authorizing the Board to Finally, I would like to discuss what I believe grant exemptions in this area would be most is a m isconception on the part of some foreign useful in dealing with these problems.” banks about the reach of the nonbanking prohi­ bitions of the Bank Holding Company Act. The Board would continue to be guided by these Apparently, some foreign banks believe that the principles in its administration of the Bank nonbanking prohibitions of the Bank Holding Holding Company Act vis-a-vis the foreign Company Act would seriously interfere with banks that would be covered by this proposed their foreign nonbanking interests. I would note legislation. first that Section 2(h) of the Bank Holding W hile the Board believes that it has sufficient Company Act specifically exem pts the wholly regulatory authority under Section 4(c)(9) to foreign activities and shareholdings of foreign deal with problem s that may occur in this area, banks from the nonbanking prohibitions of the we also believe that it would be desirable at Act. Next, I would em phasize that even when this time for the Congress to adopt a more well a foreign com pany in which a foreign bank has defined legislative policy. A great number of an equity interest does conduct a part of its foreign banks em anating from a great variety business in the United States, the Board has of banking environm ents would becom e subject used its discretionary authority under Section to the nonbanking prohibitions of the Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 773 Holding Company Act as a result of this pro­ Finally, I would like to emphasize the posed legislation. The lack of a statutory policy Board’s support for the early passage of H .R. could initially cause some m isunderstanding by 13876. foreign banks of the A ct’s effects on foreign Through your hearings on S. 958, the House companies with U .S. operations and would debates on H .R. 13876, and these proceedings make more difficult the task of form ulating today the principal issues have been identified. appropriate general regulations. Indeed, m ost responsible objections to the leg­ Therefore, the Board recommends that H .R. islation can be and have been met through fair 13876 be amended to make clear that the non­ and appropriate amendments. The question is banking prohibitions of the Bank Holding should we not put foreign and dom estic banks Company Act are not meant to prevent foreign on a relatively equal footing in the United States banks principally engaged in banking abroad now, for surely they should be in time. In fact, from retaining or acquiring interests in foreign this legislation is an essential ingredient in the chartered nonbanking companies that are also larger process of m odernizing our own banking principally engaged in business outside the laws. That work will be fairer and, I suggest, United States. W e do feel, however, that as a easier if it is evenly applicable to all banks in corollary to any such am endm ent, a domestic our country as it would be if H .R. 13876 is office of a foreign bank should be required to enacted. deal with the dom estic operations of a foreign The conscientious and excellent work of the company in which it may have an equity interest Congress and this committee should continue on a strictly arm ’s-length basis so as not to give until this bill is passed. The Federal Reserve the firm or bank involved an advantage over stands ready to assist you in any way neces­ their respective U .S. competitors. sary. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 19-20, 19761 1. Domestic Policy Directive Prelim inary estim ates of the Com m erce D epartm ent indicated that grow th in real output of goods and services had m oderated to a rate of 4.4 per cent in the second quarter, from an upw ard revised rate of 9.2 per cent in the first quarter. The prelim inary estim ates also indicated that average prices, as m easured by the G N P fixedw eighted price index, had risen at an annual rate of 4.7 per cent in the second quarter, up from the relatively low rate of 4.2 per cent recorded in the first quarter. Staff projections continued to suggest that during the second half of the year real G N P w ould expand at a m oderately rapid pace and that prices w ould rise som ew hat faster than they had during the first half. M oreover, prospects appeared favorable for continuation of a good rate of expansion in real output into 1977. A m ajor elem ent in the m oderation of grow th in real output in the second quarter was an apparent leveling off in the rate of inventory investm ent, follow ing a sharp increase in the first quarter. Final purchases in real term s grew at a som ew hat higher rate in the second quarter than in the first. The expansion in personal consum ption expenditures for both durable and nondurable goods slow ed, but net exports of goods and services changed little in the second quarter, after having fallen sharply in the first. R etail sales, w hich had declined appreciably in M ay, rebounded in June, reflecting w idespread increases am ong the m ajor categories of nondurable and durable goods. N evertheless, the expansion in sales in the second quarter as a w hole was only about half of that in the first. G row th in industrial production decelerated in June to a relatively slow pace. W hile output of business equipm ent continued to expand and output of durable goods m aterials again rose strongly, produc- 1This meeting was held over a 2-day period, beginning on the afternoon of July 19. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 775 tion of both consum er nondurable goods and nondurable goods m aterials was about unchanged. The strike in the rubber industry, w hich had lim ited the gains in output in A pril and M ay, had little or no additional effect on output in June. In the second quarter as a w hole the gain in industrial output was considerably less than that in the first quarter. A m ajor elem ent in the second-quarter slackening was a leveling off in production of nondurable goods, follow ing a rapid accum ulation of inventories in the preceding quarter. O ver-all output of durable goods rose alm ost as rapidly in the second quarter as in the first. Capacity utilization, on the average, was virtually unchanged in June in the m aterials-producing industries. U tilization in the second quarter as a w hole was about 80 per cent, com pared w ith about 71 per cent at the cyclical low in the second quarter of 1975 and 93 per cent at the previous cyclical high in the fourth quarter of 1973. In the second quarter, utilization was about 86 per cent for nondurable goods m aterials and 76 per cent for durable goods m aterials. The m oderating pace of industrial expansion during recent m onths was reflected in labor m arket developm ents. N onfarm payroll em ploym ent (adjusted for strikes), w hich had increased little in M ay, was unchanged in June. The recent w eakness in em ploy­ m ent was m ost evident in nondurable goods m anufacturing, but gains in durable goods industries also tapered off. The unem ploy­ m ent rate edged up to 7.5 per cent in June from 7.3 per cent in M ay; how ever, the increase m ay to som e extent have reflected problem s associated w ith seasonal adjustm ent. Private housing starts rose som ew hat further in June, reflecting a gain in single-fam ily units, but total starts w ere little higher in the second quarter than in the first. Residential building perm its declined in June, and the total for the second quarter was slightly below that for the first. O utstanding m ortgage loan com m itm ents at savings and loan associations had advanced further in M ay, the latest m onth for w hich data w ere available. N ew orders for nondefense capital goods rose in M ay for the fifth consecutive m onth; for the first tim e in a year and a half such orders exceeded shipm ents and there w as an increase in unfilled orders. N onresidential construction activity rem ained de­ pressed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin □ September 1976 The w holesale price index for all com m odities continued to rise at a m oderate rate in June. A verage prices of industrial com m odi­ ties— w hich had changed little in M ay— rose appreciably in June, reflecting in large part increases in prices of steel m ill products, gasoline, and m achinery and equipm ent. At the sam e tim e, how ­ ever, the rise in w holesale prices of farm and food products slow ed further; prices of m anufactured anim al feeds, soybeans, cotton, coffee, and cocoa increased, but prices of cattle, m eats, sugar, and fresh fruits and vegetables declined. The advance in the index of average hourly earnings for private nonfarm production w orkers slow ed considerably in June from the rapid rate in M ay, w hich had been attributable in part to the im pact of a m ajor settlem ent in the transportation industry and to sizable w age increases in service industries. The rate of increase over the second quarter differed little from that over the first. A staff analysis of the econom ic outlook suggested that the advance in business activity w ould soon im prove from the relatively slow pace of recent m onths. The vigorous rebound in retail sales in June was regarded as evidence that the slow dow n in consum er buying over the second quarter as a w hole was tem porary. The w eakness, w hich had occurred at a tim e w hen inventories of nondurable goods w ere backing up, had been transm itted quickly to production and em ploym ent. Inventories, how ever, had not m oved significantly out of line w ith sales. Consequently, it ap­ peared that renew ed strength in consum er spending— together w ith the gradual im provem ent of business capital outlays that was foreshadow ed by rising new orders and other advance indicators— w ould in turn be transm itted rather prom ptly to significant gains in industrial activity and em ploym ent. Staff projections for the second half of 1976 differed little from those of a m onth earlier. They suggested that expansion in business fixed investm ent w ould accelerate gradually and that business investm ent in inventories w ould increase som ew hat further, as m anufacturers and distributors endeavored to m aintain stocks in line w ith rising sales. It w as also anticipated that grow th in personal consum ption expenditures w ould be m ore vigorous than in the second quarter and that residential construction activity w ould continue to recover. G row th in State and local governm ent ex­ penditures for goods and services was expected to rem ain relatively Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 111 m oderate, although the projected rates now w ere a little stronger than those of a m onth earlier. The U .S. foreign trade balance shifted from a substantial deficit in A pril to a sm all surplus in M ay, as im ports of fuels fell back from a tem porarily increased level. For the 2 m onths com bined, the deficit in the trade balance was at a rate sharply below that in the first quarter of the year, m ainly because of sizable gains in exports of both agricultural and nonagricultural com m odities. Im ports of com m odities other than fuels, w hich had expanded sharply in the first quarter, were at a som ew hat reduced rate in the A pril-M ay period. The average value of the dollar against leading foreign curren­ cies, on a trade-w eighted basis, rem ained relatively steady over the 4 w eeks betw een the June and July m eetings at about the level it had reached in A pril, after a rise of about 15 per cent over the preceding 12 m onths. A lthough rates of inflation had dim inished in m ost foreign countries over the past year, w ith few exceptions they rem ained higher than in the U nited States. D uring the inter-m eeting period, dow nw ard pressure on the British pound and the D utch guilder eased and that on the Italian lira w as reversed. In the sam e period, upw ard pressure on the Japanese yen em erged and dow nw ard pressure on the French franc developed. Total loans and investm ents at U .S. com m ercial banks increased slightly further in June as banks continued to add to their holdings of Treasury securities. O utstanding business loans, after having risen in M ay for the first tim e since January, declined som ew hat in June. Businesses expanded their total short-term indebtedness as they had in M ay, but their dem ands for short-term funds w ere concentrated in the com m ercial paper m arket w here interest rates had declined relative to lending rates at com m ercial banks. The narrow ly defined m oney stock, M i, w hich had grow n at an exceptionally rapid pace in A pril and then at a m oderate rate in M ay, declined slightly in June. The decline probably reflected a variety of factors, including lagged adjustm ent of private m oney balances to desired levels follow ing the A pril surge associated w ith a large drop in U .S. G overnm ent deposits at Federal Reserve and com m ercial banks, an unusually heavy use of dem and deposit balances by corporations to m ake tax paym ents in June, and a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin □ September 1976 slow ing in currency grow th that was likely to be tem porary. M oreover, just as the A pril bulge in grow th was influenced by the drop in G overnm ent deposits, the June decline was influenced by an unusually large increase in such deposits. The surge in Federal outlays that typically occurs at the end of the G overnm ent’s fiscal year was not so large in June as it had been in recent years, ow ing partly to aspects of the transition this year to a fiscal year running from O ctober 1, 1976, to Septem ber 30, 1977. G row th in M 2 and M 3 m oderated in June, m ainly because of the decline in M x. A lso, inflows of the tim e and savings deposits included in the broader m onetary aggregates slow ed som ew hat. O n the basis of quarterly-average data, M x grew at an annual rate of 8V2 per cent in the second quarter of the year, com pared w ith a rate of 2xh per cent in the first quarter. M 2 and M 3 grew at rates of 11 and 12 per cent, respectively, in the second quarter, com pared w ith rates of 10 and 11 per cent in the preceding quarter. System open m arket operations since the June 22 m eeting had been guided by the C om m ittee’s decision to seek bank reserve and m oney m arket conditions consistent w ith m oderate grow th in m on­ etary aggregates over the period ahead. D ata that had becom e available in the days im m ediately follow ing the June m eeting suggested that in the June-July period grow th in both M 1 and M 2 w ould be near the m idpoints of the ranges that had been specified by the C om m ittee. A ccordingly, System operations had been directed tow ard m aintaining conditions of reserve availability con­ sistent w ith a Federal funds rate of about 5Yi per cent— the rate prevailing at the tim e of the June m eeting and the m idpoint of the operating range that the Com m ittee had specified for the inter-m eeting period. Subsequently, in early July, data becom ing available suggested that in the June-July period grow th in M x w ould be below the low er end of the specified range w hile grow th in M 2 w ould be close to the low er lim it of its range. In those circum stances, the System becam e a little m ore accom m odative in the provision of reserves, and by m idm onth the Federal funds rate had declined to around 5Va per cent, the low er lim it of the specified range. The rate rem ained close to that level over the rest of the inter-m eeting period. The System ’s slightly m ore accom m odative posture, along w ith Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 779 indications of a slow ing in the pace of econom ic expansion, led to declines in m ost m arket interest rates in the first half of July. H ow ever, som e rates turned up in the final days of the inter-m eeting period follow ing publication of prelim inary data indicating large increases in the m onetary aggregates during the statem ent w eek ending July 7. O n the day before this m eeting the m arket rate on 3-m onth Treasury bills was 5.23 per cent, com pared w ith 5.36 per cent on the day before the June m eeting. M arkets for longer-term bonds w ere influenced also by a prospective reduction in the dem and for funds. Capital m arket financing of corporations and of State and local govern­ m ents— w hich had been large in June and, indeed, throughout the first half of the year— appeared likely to decline m ore than season­ ally in July. Conditions in the hom e m ortgage m arket w ere relatively stable during the inter-m eeting period. Interest rates in the prim ary m ar­ ket, w hich typically lag bond m arket developm ents, m oved up a little further, but yields in the secondary m arket edged dow n. D em ands for m ortgage financing apparently continued strong in m any parts of the country, and there w ere indications that savings and loan associations rem ained w illing lenders. At the end of M ay, the latest m onth for w hich data were available, liquid asset holdings of the savings and loan associations w ere high relative to their outstanding loan com m itm ents. A t this m eeting the Com m ittee review ed its 12-m onth ranges for grow th in the m onetary aggregates. At its m eeting in A pril, the Com m ittee had specified the follow ing ranges for grow th over the period from the first quarter of 1976 to the first quarter of 1977: M i, AVi to 7 per cent; M 2, IV2 to 10 per cent; and M 3, 9 to 12 per cent. The associated range for grow th in the bank credit proxy was 6 to 9 per cent. The ranges being considered at this m eeting w ere for the period from the second quarter of 1976 to the second quarter of 1977. D uring the Com m ittee discussion at this m eeting, som e m em bers stressed the signs of hesitation in the econom ic expansion in the second quarter— in particular, the slow ing in grow th of consum er spending and industrial production and the less-than-expected strength in residential construction activity. It was also noted, however, that econom ic expansions at times have proceeded un­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin □ September 1976 evenly, with relatively rapid growth in one quarter often followed by relatively slow grow th in the next quarter. In that light, grow th in real G N P in the first half of the year— at an annual rate of nearly 7 per cent— w as described as satisfactory, even though it resulted in part from a rise in inventory investm ent that w as unlikely to be repeated in the second half of the year. Several m em bers expressed a belief that the pace of econom ic expansion w ould pick up again from the reduced rate in the second quarter, and a num ber anticipated that in the quarters im m ediately ahead grow th in real G N P w ould be faster than that suggested by the staff projections. Business fixed investm ent and residential construction, in particular, w ere cited as likely to be stronger than projected. Som e m em bers also anticipated that Federal G overnm ent expenditures w ould prove to be m ore expansive than assum ed at present. In connection w ith the outlook for housing, attention w as called to the ready availability of m ortgage finance. It was also suggested that reduced vacancy rates and som ew hat increased rents m ight have im proved the outlook for starts of m ultifam ily units. The m em bers w ho anticipated a relatively strong expansion in econom ic activity believed such expansion to be desirable because of the high rate of unem ploym ent, and they believed also that it could be accom m odated w ithout undue strain, in light not only of the am ount of unem ploym ent but also of the m argin of unused capacity to produce industrial m aterials. In this context, it was observed that the current recovery had not been m arked by specu­ lation in inventories or by other types of speculation. M oreover, econom ic recovery in other industrial countries appeared to be proceeding at a m oderate pace and w ithout indications of specula­ tion, in contrast w ith the w orldw ide econom ic expansion of 1972-74. It w as suggested that the expansion in this country was not likely to accelerate to an unsustainable pace in the quarters im m ediately ahead. N evertheless, som e concern w as expressed about the outlook for prices of goods and services. In com m enting on the grow th range of for the period from the second quarter of this year to the second quarter of 1977, m ost m em bers favored retaining the range of 4Vi to 7 per cent that the Com m ittee had adopted in A pril for the year ending w ith the first quarter of 1977. N o m em ber favored an increase in the range. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 781 H ow ever, there w as som e sentim ent for reducing the low er lim it of the range by V2 of a percentage point, and som e for reducing both the low er and upper lim its by that am ount. A m ong the reasons advanced for low ering the range for w ere the belief on the part of som e m em bers that the rate of inflation w ould increase and expectations that Federal G overnm ent expendi­ tures w ould exceed current projections. It was noted also that from the first to the second quarter of 1976 M t had grow n at a rate above the upper lim it of the AVi to 7 per cent range adopted at the A pril m eeting, and so a reduction in the range w ould be consistent w ith applying the 4% to 7 per cent range to the w hole 15-m onth period from the first quarter of 1976 to the second quarter of 1977. In that light, retention of the existing range for the year ahead w ould im ply som ew hat faster grow th over the next three quarters than w ould be consistent w ith the longer-run target for M i that had been adopted 3 m onths earlier. In support of retaining the existing range, how ever, it was pointed out that grow th in from the third to the fourth quarter of 1975 and then to the first quarter of 1976 had fallen short of the C om m ittee’s longer-run ranges. C onsequently, grow th in M x m easured to the level in the second quarter of 1976 from the different bases in the second, the third, and the fourth quarter of 1975 w as, in each case, w ithin the 4% to 7 per cent range. It w as observed also that the second-quarter bulge in M x reflected rapid grow th only in A pril rather than continuously throughout the quarter; M 1 grew at a m oderate rate in M ay and actually declined slightly in June. A lthough the outlook for activity was seen as generally favorable, this did not appear to be an appropriate tim e to reduce the range in view of the recent hesitation in the course of the econom ic expansion. M oreover, the rise in the incom e velocity of M l9 w hich had been unusually rapid over the first year of econom ic recovery, could not reasonably be expected to continue at such a fast pace. In fact, the rise had m oderated recently. W ith respect to the ranges for M 2 and M 3, m ost Com m ittee m em bers favored som e reduction in either the upper lim it, the low er lim it, pr both. Those m em bers who favored som e reduction in the range for M x had the sam e general reasons for w ishing to reduce the ranges for the broader m onetary aggregates. Those w ho favored retaining the existing range for M 1 anticipated that grow th in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin □ September 1976 broader aggregates w ould be som ew hat low er in relation to grow th in M x than it had been in recent quarters. Inflows to banks and to nonbank thrift institutions of the tim e and savings deposits included in the broader aggregates had slow ed som ew hat recently, in part because m arket interest rates on short-term securities had increased a little since A pril and in part because nonbank thrift institutions w ere bidding less aggressively for savings. M oreover, som e further slow ing in savings inflows was likely as econom ic activity continued to expand. It was observed, how ever, that even w ith a sm all reduction in the ranges for the broader aggregates, the range for M 3 w ould still im ply that the financing for a consid­ erable rise in the volum e of residential construction activity w ould be available. In addition, note was taken of the fact that at recent m eetings w hen the longer-run ranges for the m onetary aggregates had been review ed, the Com m ittee had taken sm all steps tow ard its longerterm objective of returning grow th in the m onetary aggregates tow ard rates consistent w ith general price stability. A gainst that background, it w as observed that som e dow nw ard adjustm ent in the ranges for M 2 and M 3 at this tim e w ould be another sm all and prudent step in the desired direction. A t the conclusion of the discussion, the Com m itte agreed that the existing AVi to 7 per cent range for M x should be retained for the 1-year period ending w ith the second quarter of 1977. The m em bers decided to reduce the upper end of the range for M 2 by Vi of a percentage point and that for M 3 by 1 percentage point; thus, the ranges projected w ere IV2 to 9V2 per cent for M 2 and 9 to 11 per cent for M 3. The associated range for grow th in the bank credit proxy w as 5 to 8 per cent. As at earlier m eetings, it w as agreed that the longer-term ranges, as w ell as the particular list of aggregates for w hich such ranges w ere specified, w ould be subject to review and m odification at subsequent m eetings. It was also understood that, as a result of short-run factors, grow th rates from m onth to m onth m ight well fall outside the ranges contem plated for annual periods. In the discussion of current policy at this m eeting, the Com m ittee took note of a staff analysis suggesting that in the July-A ugust period various factors that appeared to have depressed balances in June w ould no longer be operating and, therefore, that M 1 w ould Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 783 expand appreciably. The analysis also suggested that if the Federal funds rate w ere to rem ain near 5 XA per cent over the 4-w eek period until the next m eeting of the Com m ittee, other short-term interest rates w ere unlikely to change significantly. In those circum stances, inflows to com m ercial banks of tim e and savings deposits other than negotiable C D ’s w ere likely to expand from the June volum e as a result of the declines in interest rates that had occurred since m idyear. The Treasury was expected to raise a substantial am ount of new m oney during the forthcom ing inter-m eeting period in connection w ith its anticipated refunding of securities m aturing in m id-A ugust. A bout $4.6 billion of the m aturing issues w ere held by the public. As to policy for the period im m ediately ahead, m em bers differed little in their preferences for ranges of grow th in the m onetary aggregates over the July-A ugust period and for the m idpoint of the inter-m eeting range of tolerance for the Federal funds rate. For M l9 the m em bers w ere inclined to favor 2-m onth ranges of 4 to 8 or 4 Vi to 8Vi per cent; for M 2, the ranges m entioned w ere 7 Vi to 11 Vi and 8 to 12 per cent. W ith respect to the Federal funds rate, the ranges preferred by m ost m em bers w ere centered on the prevailing rate of 5XA per cent. D ifferences of view w ere m ore m arked w ith respect to the appropriate w idth of the range for the Federal funds rate. A t its previous m eeting, the Com m ittee had agreed upon a relatively narrow range— 5 XA to 53A per cent— on the grounds that both a significant easing and a significant firm ing of m oney m arket condi­ tions w ere undesirable— the form er because of the possibility that such easing m ight have to be reversed shortly and the latter because of the elem ent of uncertainty in the econom ic outlook. At this m eeting som e m em bers favored specifying a relatively narrow funds rate range— 5 to 5 Vi per cent was suggested— in part for the sam e reasons. A nother reason advanced w as uncertainty about the forces leading to recent w ide fluctuations in the grow th rates of M i. It was pointed out that the Com m ittee m et regularly every m onth and that for the relatively brief span of 4 w eeks before the next regularly scheduled m eeting the System could seek to m aintain m oney m arket conditions close to those now prevailing w hile the m em bers assessed the various uncertainties in the present situation. Such a course, it was noted, w ould reduce the risk of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin □ September 1976 w hipsaw ing financial m arkets. Finally, it was suggested that if the C om m ittee adopted a relatively narrow range for the Federal funds rate, the operating instructions contained in the last paragraph of the dom estic policy directive issued to the Federal Reserve Bank of N ew Y ork should give greater w eight than usual to m oney m arket conditions. M ost m em bers, how ever, favored specifying a som ew hat w ider range for the Federal funds rate— either 5 to 53A per cent or 43A to 5% per cent. Som e of these m em bers also stressed the existing uncertainty about the forces influencing the behavior of the m one­ tary aggregates— in particular, about the causes of the pattern of rapid grow th of M x in A pril, m oderate grow th in M ay, and a slight decline in June— but in their view this uncertainty was a reason for specifying a w ider range for the Federal funds rate and for continuing to base operating decisions in the period im m ediately ahead prim arily on the behavior of the aggregates. It w as argued that specification of a narrow range for the Federal funds rate m ight w ell lead to grow th in the aggregates at rates that were above or below the ranges specified for the July-A ugust period. At the conclusion of the discussion the Com m ittee decided to seek bank reserve and m oney m arket conditions consistent w ith m oderate grow th in m onetary aggregates over the period ahead. Specifically, the Com m ittee concluded that grow th in M x and M 2 over the July-A ugust period at annual rates w ithin ranges of 4 to 8 per cent and IV2 to IIV2 per cent, respectively, w ould be appropriate. As at other recent m eetings, the C om m ittee decided that, in assessing the behavior of the aggregates, approxim ately equal w eight should be given to M x and M 2. It w as agreed that until the next m eeting the w eekly-average Federal funds rate m ight be expected to vary in an orderly w ay w ithin a range of 43A to 53A per cent. As custom ary, it was understood that the C hairm an m ight call upon the Com m ittee to consider the need for supplem entary instructions before the next scheduled m eeting if significant inconsistencies appeared to be developing am ong the C om m ittee’s various objectives. The follow ing dom estic policy directive was issued to the Federal Reserve B ank of N ew Y ork: The information reviewed at this meeting suggests that growth in real output of goods and services, which had been vigorous in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 785 the first quarter, moderated in the second quarter as a consequence of a smaller advance in consumer spending and little change in the rate of inventory accumulation. In June growth in industrial production slowed and nonfarm payroll employment changed little. The unemployment rate edged up to 7.5 per cent from 7.3 per cent in May, but this increase may have partly reflected seasonal adjust­ ment problems. Retail sales rebounded strongly in June. The rise in the wholesale price index for all commodities remained moderate, as the advance in average prices of farm products and foods slowed further. However, average prices of industrial commodities rose more than in other recent months. The advance in the index of average wage rates slowed considerably in June following a sharp rise in May; over the second quarter as a whole the index rose at about the same rate as in the first quarter. The average value of the dollar against leading foreign currencies has remained relatively steady in recent weeks. In May there was a small surplus in the U.S. foreign trade balance. Mi, which had grown moderately in May, declined slightly in June. From the first to the second quarter, however, Mx expanded at an 8.4 per cent annual rate because of the exceptional rise in April. Growth in M2 and M3 moderated in June, mainly because of the decline in Mu although inflows of the time and savings deposits included in the broader aggregates also slowed somewhat. Short-term market interest rates have declined somewhat in recent weeks, and most long-term rates have edged down. 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 expansion, while resisting in­ flationary pressures and contributing to a sustainable pattern of international transactions. To implement this policy, while taking account of developments in domestic and international financial markets, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in monetary aggregates over the period ahead. Votes for this action: Messrs. Burns, Balles, Black, Coldwell, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Winn. Vote against this action: Mr. Volcker. Mr. Volcker dissented from this action because in the present circumstances he would not wish to raise or lower the Federal funds rate by as much as V2 of a percentage point—a change that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin □ September 1976 m ight be interpreted as a strong signal of a change in policy and that could have repercussions in financial m arkets— in response m erely to short-term fluctuations in the m onetary aggregates that m ight w ell prove transient. 2. Memorandum of Discussion At this m eeting the Com m ittee review ed its decision of M ay 18, 1976, to discontinue the m em orandum of discussion after the m em orandum for the m eeting of M arch 15-16, 1976, in response to requests for reconsideration received from the respective C hair­ m en of the Senate and H ouse banking com m ittees. Follow ing discussion, the Com m ittee decided to reaffirm the decision in question. Votes for this action: Messrs. Burns, Volcker, Balles, Black, Gardner, Jackson, Kimbrel, Lilly, Partee, Wallich, and Mayo. Vote against this ac­ tion: Mr. Coldwell. Absent and not voting: Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.) M r. Coldw ell, w ho had dissented from the action of M ay 18, dissented also from this action to reaffirm the earlier decision. sfc 5}! Jfi 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

787 Law Department Statutes, regulations, interpretations, and decisions Extensions of Credit Truth in Lending by Federal Reserve Banks The Board of Governors has adopted several The Board of Governors has amended its Regu­ amendments to its Regulation Z. The amendments lation A to enable member banks to increase their are intended to clarify certain* requirements, add ability to serve their communities by providing flexibility as necessary, and insure that consumers them with a reliable source of short-term funds would be able to procure complete information during periods of increased loan demand or de­ regarding their open end credit accounts quickly creased deposits due to seasonal conditions. and without undue expense. Effective August 25, 1976, section 201.2(d) is Effective August 31, 1976, Part 226 is amended amended to read as follows: as follows: 1. To fully implement § 411, Title IV, Pub. Section 201.2— General Principles L. 93-495, § 226.7(b)(l)(ii) will provide, and a new § 226.7(k) will be added, as follows: (d) Seasonal credit. Federal Reserve credit is Section 226.7— Open End Credit Accounts— available for longer periods to assist a member Specific Disclosures bank in meeting seasonal needs for funds arising sfc sfc sfc sj: He from a combination of expected patterns of move­ ment in its deposits and loans. Such credit will (b) Periodic statements required (1) *** ordinarily be limited to the amount by which the member bank’s seasonal needs exceed certain per­ centages established by the Board of Governors (ii) The information required by § 226.7(k) of the bank’s average total deposits in the preced­ ing calendar year. Credit will be available if the Reserve Bank is satisfied that the member bank’s (k) Identification of transactions. (1) Each qualifying need for funds is seasonal and will extension of credit for which an actual copy of persist for at least four weeks. To the extent the document evidencing the credit transaction practicable, member banks should arrange in ad­ (which does not include a so-called “facsimile vance for seasonal credit for the full period during draft”) accompanies the periodic statement on which such credit is expected to be required. In which the transaction is first reflected shall be making arrangements for such credit, a Reserve identified by disclosing on the periodic statement, Bank may agree to extend credit for a period of or on accompanying statement(s) or document(s), up to 90 days,1 subject to compliance with appli­ the amount of the transaction and, at the creditor’s cable requirements of law at the time credit is option, either the date of the transaction or the extended. However, in the event that a member date the transaction is debited to the customer’s bank’s seasonal needs should persist beyond such account. period, the Reserve Bank will normally be (2) Each extension of credit for which an actual prepared to consider a request by the member bank copy of the document evidencing the credit trans­ for further credit extensions under the seasonal action does not accompany the periodic statement credit arrangement. shall be identified by disclosing on or with the periodic statement on which that credit transaction is first reflected at least: 1 As provided in the law and in this Part, the maturity of (i) For transactions in which the creditor and advances to member banks is limited to 90 days, except as provided in § 201.3(b) of this Part. the seller are the same person or related persons, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Federal Reserve Bulletin □ September 1976 the amount of the transaction,9b the date on which (i) An actual copy of the document evidenc­ the transaction took place, 9c and a brief identifi- ing the transaction which shows the amount of the cation9d of any property or services purchased or transaction and either the date of the transaction, an identifying number or symbol reasonably the date the transaction was debited to the cus­ unique for that transaction with that creditor which tomer’s account, or the date placed on the docu­ appears on the document evidencing the transac­ ment or instrument by the customer (if the cus­ tion given to the customer; provided, that, if the tomer signed the document or instrument); or creditor discloses such an identifying number or (ii) A description of the transaction, which symbol, the absence of the identification of the characterizes it as a cash advance, loan, overdraft property or services otherwise required must be loan, or other designation as appropriate, and treated as a billing error under §§ 226.2(j) and which includes the amount of the transaction and 226.14 and as an erroneous billing under § the date of the transaction9e or the date which 226.14(b) if the customer submits a proper written appears on the document or instrument evidencing notice of a billing error relating to such absence, the transaction (if the customer signed the docu­ and the creditor must provide documentary evi­ ment or instrument). dence of the transaction to the customer free of (4) If, despite the maintenance of procedures charge whether or not the customer requests it. reasonably adapted to procure the information re­ (ii) For transactions in which the seller and quired by §§ 226.7(k)(l), (2), and (3) such infor­ the creditor are not the same person or related mation is unavailable to the creditor, the date of persons, the amount of the transaction, the date debiting the amount to the account shall be substi­ on which the transaction took place, and the tuted for the date otherwise required (except that seller’s name and the address (city and State or the date of debiting need not be provided if an foreign country, using understandable and gener­ actual copy of the document evidencing the trans­ ally accepted abbreviations if the creditor desires) action is provided with the periodic statement) and where the transaction took place. the creditor shall disclose as much of the other (3) Notwithstanding the provisions of §§ required information as is available and omit any 226.7(k)(l) and 226.7(k)(2), transactions involv­ information which is not available, provided, that, ing nonsale credit, such as a cash advance or an if the customer submits a proper written notifica­ overdraft or other checking plan transactions, shall tion of a billing error relating to the absence of be identified on or with the periodic statement upon the primarily required date or other information, which the transaction is first reflected by providing such absence shall be treated as a billing error at least: under §§ 226.2(j) and 226.14 and as an erroneous billing under §226.14(b) and, unless previously furnished with a periodic statement, documentary evidence of the transaction must be furnished whether or not the customer requests it, within 9bFor purposes of paragraph 226.7(k) a person is not related to the creditor simply because the person and the creditor have the time period allowed in §226.14 for resolution an agreement or contract pursuant to which the person is of a billing error, without charge to the customer. authorized to honor the creditor’s credit card under the terms specified in the agreement or contract. Franchised or licensed (5) In any case in which a transaction occurs sellers of a creditor’s product shall be considered to be related other than in a State: to the creditor for purposes of paragraph 226.7(k). Sellers who (i) The creditor may disclose the date of assign or sell open end customer sales accounts to a creditor or arrange for such credit under an open end credit plan which debiting the amount of the transaction to the open allows the customer to use the credit only in transactions with end credit account in place of any other date that seller shall be considered related to the creditor for pur­ required elsewhere in § 226.7(k); and poses of § 226.7(k). 9cWith respect to transactions which are not billed in full (ii) The provisions of §§ 226.7(k)(4) shall on any single statement but for which precomputed instalments apply and the creditor need not maintain proce­ are billed periodically, the date the transaction takes place for purposes of paragraph § 226.7(k) shall be deemed to be the dures reasonably adapted to procure the informa­ date on which the amount is debited to the customer’s account. tion otherwise required by § 226.7(k). 9dFor purposes of paragraph § 226.7(k), designations such as “merchandise” or “miscellaneous” shall not be considered sufficient identification of property or services, but a reference to a department in a sales establishment which accurately conveys the identification of the type(s) of property or services which are available in such department shall be sufficient under 96 In cases in which an amount is debited to a customer’s this paragraph. Identification may be made on an accompanying open end credit account under an overdraft checking plan, the slip or by symbol relating to an identification list printed on date of debiting the open end credit account shall be considered the statement. the date of the transaction for purposes of this paragraph. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 789 (6) In complying with the disclosure require­ tify the transaction by disclosing such information ments of § 226.7(k)(l), (2), (3), or (4): as is reasonably available and treating the absence (i) The creditor may rely upon and disclose of the information required by §§ 226.7(k)(l), (2), the information supplied by the seller with respect or (3), as applicable, as a billing error, as provided to the date and amount of transactions for which in §§ 226.2(j) and 226.14. If a customer submits the creditor and the seller are not the same person a proper written notification of a billing error or related persons. relating to the absence of such information and (ii) With regard to disclosing the seller’s the information was, in fact, not disclosed as address where the transaction took place for pur­ required by §§ 226.7(k)(l), (2), or (3), as appli­ poses of § 226.7(k)(2)(ii), the creditor may omit cable, the transaction shall be treated as an erro­ the address or provide an address or other suitable neous billing under § 226.14(b) and documentary designation which, in the creditor’s opinion, will evidence of the transaction must be furnished assist the customer in identifying the transaction whether or not the customer requests it (despite or in relating the transaction, as reflected, to a the provisions of §§ 226.2(j) and 226.14(a)(2)), document(s) evidencing the transaction previously within the time period allowed in § 226.14 for furnished when no meaningful address is readily resolution of a billing error, without charge to the available because the transaction took place at a customer. location which is not fixed (for example, aboard (ii) The effective date of §§ 226.7(k)(l) a public conveyance), or in the customer’s home through 226.7(k)(7)(i), inclusive, is October 28, (in which case “customer’s home” or a similar 1976. Until October 28, 1976, the creditor shall description is sufficient) or because the transaction disclose the date of each extension of credit or was the result of a mail or telephone order (in the date such extension of credit is debited to the which case “telephone order,” “mail order,” or account during the billing cycle, the amount of similar description is sufficient); provided that any such extension of credit and, unless previously such disclosure made or omitted shall not be for furnished, a brief identification9* of any goods or the purpose of circumvention or evasion of this services purchased or the extension of credit. Part. 2. Section 226.7(b)( 1 )(iii) is amended by the (iii) With regard to disclosing the seller’s deletion of the period at the end thereof and the name for purposes of § 226.7(k)(2)(ii), disclosure addition of the following: “, except that the date of a seller’s name which appears on the document of crediting to the customer’s account need not evidencing the transaction (or a more complete be provided if a delay in crediting does not result spelling of such a name if the name is alphabeti­ in the imposition of any finance charges, late cally abbreviated on the document evidencing the payment charges, or other charges for that billing transaction) is sufficient for purposes of § cycle or a later billing cycle.” 226.7(k)(2)(ii). 3. Section 226.7(c)(1) is amended to read: (7)(i) As an alternative to the provisions of §§ * * * 226.7(k)(l) through 226.7(k)(5), from October 28, (1) The information required to be disclosed 1976, until October 28, 1977: (A) the creditor may under paragraph (b)(l)(ii) of this section and disclose the date of debiting the amount of the itemization of the amounts and dates required to transaction to the customer’s account for the date be disclosed under paragraph (b)(l)(iii) of this of the transaction or the date placed on the docu­ section and of the amount of any finance charge ment evidencing a credit transaction if, due to required to be disclosed under paragraph (b)(l)(iv) operational limitations, either such date is una­ of this section may be made on the reverse side vailable to the creditor for purposes of billing; and of the periodic statement or on a separate accom­ the creditor may disclose an identifying number panying statement(s), provided that the totals of or symbol which appears on the document evi­ the respective debits and credits under each of dencing the credit transaction given to or used by those paragraphs are disclosed on the face of the the customer at the time of or in connection with periodic statement. the credit transaction in place of the seller’s name and address or description of the property or serv­ ices purchased if, due to operational limitations, 9f Identification may be made on an accompanying slip or such information is unavailable to the creditor for by symbol relating to an identification list printed on the purposes of billing; or (B) the creditor may iden­ statement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin □ September 1976 4. Section 226.13(i)(4) is amended to add a ceipts” for option transactions to be effected in footnote as follows: a special cash account was not considered by the Board at the time of the 1973 interpretation. Section 226.13— Credit Card An escrow receipt is an agreement under which Transactions— Special Requirements a bank represents and warrants that it holds for the account of a customer the securities which are the subject of a call, or the cash to purchase the (i) Right of cardholder to assert claims or de­ securities which are the subject of a put, and will fenses against card issuer. * * * continue to hold the same until the option is either (4) If the cardholder refuses to pay the amount exercised or expires. If the option is exercised, of credit outstanding with respect to the property the bank will deliver or accept delivery of the or services which gave rise to the claim(s) or appropriate securities against payment, as the cir­ defense(s) under this section, the creditor may not cumstances require. report to any person that particular amount as It has been represented to the Board that cus­ delinquent until the dispute is settled or judgment tomers who wish to write covered options in a is rendered.15a cash account using escrow receipts are hampered 5. Section 226.7(b)(l)(ii), as adopted by the because of procedural delays in transmitting the Board on September 15, 1975, and published in escrow receipt from the bank to the broker. Up the Federal Register on September 19, 1975, (40 to three business days may elapse before the re­ FR 43200) is hereby rescinded. The suspension ceipt can be in the physical possession of the of the effective date of the transition period as broker because, for example, some banks will not adopted by the Board on May 7, 1976, and pub­ issue the receipt until the premium for writing the lished in the Federal Register on May 18, 1976 option is delivered. (41 FR 20395) is hereby rescinded. The Board is of the view that a broker may effect an option transaction in a special cash ac­ count where the customer represents that the re­ 15a Nothing in this paragraph prohibits a creditor from re­ porting the disputed amount or account as being in dispute. quired securities or cash are then held for that customer at a bank and the broker independently verifies that the appropriate escrow receipt will be delivered to the broker by the bank as soon as Interpretation of Regulation T possible but, in no event, later than three business days after the option is written. (The term “bank” Use of escrow receipts for option transactions effected in special cash account. The Board has as defined in section 3(a)(6) of the Securities been asked whether or not it is permissible under Exchange Act of 1934 includes banks, trust com­ the provisions of § 220.4(c) of Regulation T (12 panies and those branches of foreign banks which CFR 220.4(c)) relating to the special cash account, are located in the United States and are supervised to allow customers to write put and call securities and examined by State banking authorities.) Any options which are “covered” by the escrow re­ delay in delivery of the escrow receipt resulting ceipt of a bank when the escrow receipt, because from factors within the customer’s control would, of the mechanics of the trade, cannot be delivered of course, cast doubt on the eligibility of the to the broker on the day the option is written. transaction as a bona fide cash transaction. When exchange-traded securities options were first introduced in 1973, the Board expressed the view Credit by Banks that certain option transactions were permitted in For The Purpose of the cash account (1973 B u lletin 525; 12 CFR Purchasing or Carrying Margin Stocks 220.126) under circumstances which indicated their nature as bona fide cash transactions. Basi­ Notice Postponing Effective cally, that interpretation indicates that the special Date of Adoption of Revised Federal Reserve cash account can be used if the underlying securi­ Form U-l, “ Statem ent of Purpose of a Stockties, or the funds necessary to pay for the securi­ Secured Extension of Credit by a Bank” ties, are held in the account on the day the option is written. (This is commonly referred to as a 1. Pursuant to the authority of Section 7 of the “covered” transaction.) The use of “escrow re­ Securities Exchange Act of 1934 (15 U.S.C. 78g), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 791 the Board of Governors, on June 11, 1976 (41 Privacy Act of 1974 Federal Register 23667) published notice of Notice that Identified adoption of Federal Reserve Form U-l, “State­ ment of Purpose of a Stock-Secured Extension of Systems of Records Continue in Effect Credit by a Bank,” to be effective September 1, The purpose of this document is to give notice 1976. that the systems of records identified in notices 2. Because some banks have indicated possible published in the Federal Register, 40 Fed. Reg. operational difficulties in complying with certain 43862 (1975) and 41 Fed. Reg. 30574 (1976), requirements of the revised Form U-l, the Board continue in effect. This notice is published in hereby postpones the effective date of such revi­ compliance with the requirements of 5 U.S.C. sion to November 1, 1976 in order that these Sec. 552a(e)(4) as added by Section 3 of the questions may be reviewed. Privacy Act of 1974. B ank H olding C ompany and B ank M erger O rders Issued by the B oard of G overnors Orders Under Section 3 deposits therein. Two of Applicant’s principals are of Bank Holding Company Act also principals in two existing bank holding com­ panies located in Nebraska. The subsidiary of one Citi Bancorp, of these holding companies is located in the rele­ Lincoln, Nebraska vant market and holds approximately 2.9 per cent of deposits in the market; the subsidiary bank of Order Approving the other affiliated holding company is located in Formation of Bank Holding Company Geneva, Nebraska, approximately 70 miles from Citi Bancorp, Lincoln, Nebraska, has applied Bank. Inasmuch as the subject proposal represents for the Board’s approval under § 3(a)(1) of the a restructuring of Bank’s ownership, and based Bank Holding Company Act (12 U.S.C. § upon other facts of record, the acquisition of Bank 1842(a)(1)) of formation of a bank holding com­ by Applicant would not eliminate any significant pany through acquisition of 97.8 per cent of the existing or potential competition, nor have an voting shares of Citibank and Trust Co. of Lin­ adverse effect on other area banks. Accordingly, coln, Lincoln, Nebraska (“Bank”). it is concluded that competitive considerations are Notice of the application, affording opportunity consistent with approval of the application. for interested persons to submit comments and The financial and managerial resources and views, has been given in accordance with § 3(b) prospects of Applicant are primarily dependent on of the Act. The time for filing comments and views those of Bank. In this regard, Applicant proposes has expired, and the application and all comments to service the debt that it will assume as a part received have been considered in light of the of this proposal over a twelve-year period through factors set forth in § 3(c) of the Act (12 U.S.C. dividends from Bank and the tax benefits derived § 1842(c)). from filing consolidated tax returns. The projected Applicant is a non-operating company organized earnings of Bank appear sufficient to provide Ap­ for the purpose of becoming a bank holding com­ plicant with the necessary financial flexibility to pany through acquisition of Bank (deposits of $16 meet its annual debt servicing requirements while million).1 Upon acquisition of Bank, Applicant maintaining Bank’s capital at an acceptable level. would control the 80th largest bank in Nebraska, Moreover, it appears that the financial and mana­ holding .27 per cent of total deposits in commer­ gerial considerations with respect to the other cial banks in the State. Bank is the seventh largest holding companies with which Applicant’s of eighteen banks in the Lincoln banking market, principals are involved are generally satisfactory. which is approximated by Lancaster County, and Therefore, considerations relating to banking fac­ controls 2.5 per cent of the total commercial bank tors are regarded as being consistent with approval of the application. Considerations relating to the convenience and needs of the community to be served are also regarded as consistent with ap- 1A11 banking data are as of June 30, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin □ September 1976 proval of the application to acquire Bank. It has million, representing 1.1 per cent of total deposits been determined that the proposal to form a bank in commercial banks in the relevant banking mar­ holding company would be in the public interest ket2'and is the smallest of five banking organi­ and that the application should be approved. zations in the market.3 On the basis of the record, the application is Since Applicant has no present operations or approved for the reasons summarized above. The subsidiaries, consummation of the proposed trans­ transaction shall not be made (a) before the thir­ action would not have any adverse effect on exist­ tieth calendar day following the effective date of ing or potential competition,4 nor would it increase this Order or (b) later than three months after the the concentration of banking resources or have an effective date of this Order, unless such period adverse effect on other banks in the relevant mar­ is extended for good cause by the Board or by ket. Thus, the Board concludes that competitive the Federal Reserve Bank of Kansas City pursuant considerations are consistent with approval of the to delegated authority. application. By order of the Secretary of the Board, acting The financial and managerial resources of Ap­ pursuant to delegated authority from the Board of plicant and Bank are regarded as satisfactory and Governors, effective August 11, 1976. the future prospects for each appear favorable. Applicant will not incur debt incident to the subject (Signed) Griffith L. Garwood, proposal. It is expected that, following consum­ [seal] Assistant Secretary of the Board. mation of this proposal, Bank will increase interest rates it pays on savings deposits, initiate a credit CUbanc Corp., card program, and expand its hours of operation. Columbus, Ohio Accordingly, considerations relating to the con­ Order Approving venience and needs of the communities to be served lend some weight toward approval of the Formation of Bank Holding Company application. It is the Board’s judgment that the CUbanc Corp., Columbus, Ohio, has applied proposed acquisition would be in the public inter­ for the Board’s approval under § 3(a)(1) of the est and should be approved. Bank Holding Company Act (12 U.S.C. § On the basis of the record, the application is 1842(a)(1)) of formation of a bank holding com­ approved for the reasons summarized above. The pany through acquisition of 100 per cent (less transaction shall not be made (a) before the thir­ directors’ qualifying shares) of the voting shares tieth calendar day following the effective date of of The Alexandria Bank Company, Alexandria, this Order or (b) later than three months after the Ohio (“Bank”). effective date of this Order, unless such period Notice of the application, affording opportunity is extended for good cause by the Board, or by for interested persons to submit comments and the Federal Reserve Bank of Cleveland pursuant views, has been given in accordance with § 3(b) to delegated authority. of the Act. The time for filing comments and views By order of the Board of Governors, effective has expired, and the Board has considered the August 4, 1976. application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U.S.C. § 1842(c)). Voting for this action: Chairman Burns and Gover­ nors Wallich, Coldwell, Jackson, Partee, and Lilly. Applicant is a recently formed corporation or­ Absent and not voting: Governor Gardner. ganized for the purpose of becoming a bank hold­ ing company1 through the acquisition of Bank. Bank holds total deposits of approximately $2.8 (Signed) Griffith L. Garwood, [seal] Assistant Secretary of the Board. 1 Applicant was organized by The Ohio Central Credit Union, Inc., Columbus, Ohio, and The Ohio Credit Union 2 The relevant banking market is approximated by Licking League, Columbus, Ohio. Applicant’s shares are to be held County except for the Townships of Jersey, Lima, and Etna. by seven individuals and 24 State chartered credit unions. No 3 All banking data are as of June 30, 1975. credit union will own more than 5 per cent of the outstanding 4 No credit union that will share in the ownership of Appli­ voting shares of Applicant. cant operates in the relevant banking market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 793 International Bancorporation, million debt as a result of this proposal, it appears that the income to be derived from bank, by way St. Paul, M innesota of dividends, should provide Applicant with Order Approving sufficient revenue to service the debt adequately Formation of Bank Holding Company without impairing the financial condition of Bank. Accordingly, considerations relating to the bank­ International Bancorporation, St. Paul, Minne­ ing factors are consistent with approval of the sota, has applied for the Board’s approval under application. Consummation of the transaction § 3(a)(1) of the Bank Holding Company Act (12 would have no immediate effect on the area’s U.S.C. § 1842(a)(1)) of formation of a bank banking convenience and needs; however, consid­ holding company through acquisition of all of the erations relating to the convenience and needs of voting shares (less directors’ qualifying shares) of the community to be served are regarded as being The First National Bank of International Falls, consistent with approval of the application. It is International Falls, Minnesota (“Bank”). the Board’s judgment that consummation of the Notice of the application, affording opportunity proposed transaction would be consistent with the for interested persons to submit comments and public interest and that the application should be views, has been given in accordance with § 3(b) approved. of the Act. The time for filing comments and views In connection with the Board’s consideration of has expired, and the Board has considered the this application, a question arose concerning the application and all comments received in light of existence of a possible control relationship be­ the factors set forth in § 3(c) of the Act (12 U.S.C. tween Applicant, Bank, and another bank holding § 1842(c)). company. In order to alleviate this concern, Ap­ Applicant, a nonoperating corporation with no plicant’s principal has agreed and committed to subsidiaries, was organized for the purpose of eliminate interlocking director relationships be­ becoming a bank holding company through the tween Applicant and Bank, on the one hand, and acquisition of Bank. Bank (deposits of $17.8 mil­ the other bank holding company, on the other. In lion) is the largest of three banks operating in the concluding that the instant proposal is in the public relevant banking market1 and controls approxi­ interest, the Board has relied upon the aforemen­ mately 46 per cent of the total deposits in com­ tioned commitments and the Board’s approval of mercial banks in the market.2 The second largest this application is conditioned upon the fulfillment bank in the relevant market controls approximately of those commitments. 44 per cent of total deposits therein. Upon acqui­ On the basis of the record, the application is sition of Bank, Applicant would control the 82nd approved for the reasons summarized above. The largest banking organization in Minnesota, holding transaction shall not be made (a) before the thir­ . 12 per cent of the total commercial bank deposits tieth calendar day following the effective date of in the State. Inasmuch as the proposed transaction this Order or (b) later than three months after the involves a transfer of control of Bank from its effective date of this Order, unless such period principal to a corporation controlled by the same is extended for good cause by the Board, or by individual, and since Applicant and its principal the Federal Reserve Bank of Minneapolis pursuant control no other bank, consummation of the pro­ to delegated authority. posal would not eliminate existing or potential By order of the Board of Governors, effective competition, nor have any adverse effects on other August 10, 1976. banks in the relevant market. Therefore, competi­ tive considerations are consistent with approval of the application. The financial and managerial resources and fu­ ture prospects of Applicant, which are dependent Voting for this action: Chairman Burns and Gover­ nors Wallich, Coldwell, Jackson, and Partee. Present upon those of Bank, are considered to be satis­ and abstaining: Governor Lilly. Absent and not voting: factory. Although Applicant will assume a $2 Governor Gardner. 1 The relevant banking market is approximated by the north­ western half of Koochiching County. (Signed) GRIFFITH L. GARWOOD, 2 ah bankins data are as of December 31, 1975. [seal] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin □ September 1976 Bankers Trust New York Corporation, raise significant barriers to entry by other organi­ zations not presently in the market. Therefore, on New York, New York the basis of the facts of record, the Board con­ Order Denying Acquisition of Bank cludes that consummation of the proposal would not have significant adverse effects on existing or Bankers Trust New York Corporation, New potential competition in any relevant area. York, New York (“Applicant”), a bank holding The financial and managerial resources and fu­ company within the meaning of the Bank Holding ture prospects of Bank are generally satisfactory.2 Company Act (“Act”), has applied for the As the Board has stated on a number of occa­ Board’s approval under § 3(a)(3) of the Act (12 sions, a bank holding company should be a source U.S.C. § 1842(a)(3)) to acquire all of the voting of financial and managerial strength for its subsid­ shares (less directors’ qualifying shares) of The iaries. With regard to the financial and managerial First National Bank of Mexico, Mexico, New resources and future prospects of Applicant, in­ York (“Bank”). formation in the record, including all bank exami­ Notice of the application, affording opportunity nation information available to the Board, indi­ for interested persons to submit comments and cates that Applicant has been experiencing finan­ views, has been given in accordance with § 3(b) cial difficulties that have detracted from its overall of the Act. The time for filing comments and views financial condition and lessened its ability to serve has expired, and the Board has considered the as a source of strength for its subsidiaries. The application and all comments received, including subject application by its very nature would to those submitted by Bank, in light of the factors some extent impose an additional burden on Ap­ set forth in § 3(c) of the Act (12 U.S.C. § plicant’s operations. In these circumstances, it is 1842(c)). the Board’s view that Applicant’s resources should Applicant, the fifth largest banking organization be directed toward developing and maintaining in the State of New York, controls nine banks with strong and efficient operations within its existing aggregate deposits of approximately $10.4 billion, structure. Accordingly, the Board concludes that representing approximately 7.7 per cent of the total considerations related to the financial and mana­ deposits in commercial banks in New York.1 Ac­ gerial aspects of Applicant’s proposal weigh quisition of Bank ($9.8 million in deposits) would against approval of the application. increase Applicant’s share of the total commercial There is no evidence to indicate that the banking bank deposits in the State by 0.01 of one per cent needs of the community to be served are not being and would not significantly increase the concen­ met currently. Applicant states that the proposed tration of banking resources in New York. transaction would allow Bank to offer additional Bank ranks eleventh among the 15 banking services to its customers, including trust and in­ organizations located in the Syracuse banking vestment services, international banking services, market (approximated by the western half of savings incentive plans and underwriting and ad­ Madison County and all of Onondaga and Oswego visory services for municipalities. While conven­ Counties) and controls approximately 0.7 of one ience and needs considerations appear to be con­ per cent of total market deposits. The closest sistent with approval of the application, they are branch of any of Applicant’s banking subsidiaries not sufficient, in the Board’s judgment, to out­ to Bank is located approximately 25 miles south­ weigh the aforementioned adverse banking factors east of Bank in the same banking market. While reflected in the record. Accordingly, it is the there is some existing competition between Appli­ Board’s judgment that approval of the application cant’s banking subsidiaries and Bank, the amount of such competition that would be eliminated as a result of this proposal does not appear to be significant. Similarly, the effects of the proposal 2In connection with this proposal, Applicant indicates that on potential competition do not appear to be sig­ it intends to finance the proposed transaction through the nificant. Bank is one of the smaller banks in the issuance of $1.9 million in promissory notes maturing over a 13 year period and that Bank’s earnings alone will be market, and its acquisition by Applicant would not sufficient to retire the debt while maintaining an adequate capital position for Bank. On the basis of the facts of record and its analysis of the proposal, however, the Board is unable to conclude that Applicant’s assumptions are correct and that the financing of the proposal solely from Bank’s earnings would *A11 banking data are as of December 31, 1975. not result in a deterioration of Bank’s capital position. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 795 would not be in the public interest and that the would increase Applicant’s share of Statewide application should be denied. deposits to 10.3 per cent without changing its On the basis of the record, the application is ranking in the State. Although consummation of denied for the reasons summarized above. this transaction would not significantly increase the By order of the Board of Governors, effective concentration of banking resources in Michigan it August 18, 1976. would have adverse effects upon concentration in the relevant market. Voting for this action: Chairman Burns and Gover­ Bank is the larger of the two banks located in nors Gardner, Wallich, Coldwell, Jackson, and Partee. the city of Trenton, a southern suburb of Detroit, Absent and not voting: Governor Lilly. and is the 14th largest of 36 banking organizations (Signed) Griffith L. Garwood, operating in the Detroit banking market (the rele­ [seal] Assistant Secretary of the Board. vant market).2 Applicant has a significant presence in the Detroit market as it operates seven banks with 88 banking offices in the market, and controls M ichigan National Corporation, $1.3 billion in deposits. Applicant is the fourth Bloomfield Hills, M ichigan largest banking organization in the Detroit market controlling approximately 8.5 per cent of total Order Denying Acquisition of Bank market deposits. Approval of the application Michigan National Corporation, Bloomfield would increase Applicant’s market share to 9.2 Hills, Michigan, a bank holding company within per cent. the meaning of the Bank Holding Company Act, The Detroit banking market is a concentrated has applied for the Board’s approval under § market in which the four largest banking organi­ 3(a)(3) of the Act to acquire all of the voting shares zations hold approximately 71.0 per cent of market (less directors’ qualifying shares) of the successor deposits. Consummation of the proposal would by merger to Peoples Bank and Trust, National result in a further increase in this concentration, Association, Trenton, Michigan (“Bank”). The to 71.7 per cent. The facts of record show the bank into which Bank is to be merged has no proposal would result in the elimination of existing significance except as a means to facilitate the competition. Furthermore, in Wayne County, acquisition of the voting shares of Bank. Accord­ where the city of Trenton is located, Bank operates ingly, the proposed acquisition of shares of the 15 out of its 16 banking offices and Applicant has successor organization is treated herein as the three subsidiary banks with 45 offices. Thus, con­ proposed acquisition of the shares of Bank. summation of this transaction would eliminate Notice of the application, affording opportunity existing competition between Applicant and Bank, for interested persons to submit comments and and would increase the concentration of banking views, has been given in accordance with § 3(b) resources in the market. of the Act. The time for filing comments and views Bank ranks among the top 10 per cent of all has expired, and the Board has considered the Michigan banks in deposit size3 and approval of application and all comments received, including the proposal would remove an attractive entry those of the United States Department of Justice vehicle for a Michigan bank holding company not and the Financial Institutions Bureau of the Mich­ currently represented in the Detroit market, Mich­ igan Department of Commerce, in light of the igan’s largest market. Thus, approval would lessen factors set forth in § 3(c) of the Act (12 U.S.C. the possibility of future market deconcentration § 1842(c)). through the entry of another banking organization Applicant, the second largest banking organi­ into the market. This factor is even more signifi­ zation and bank holding company in Michigan, cant when considered in light of the fact that the controls 16 banks with aggregate deposits of ap­ overall market is not particularly attractive for de proximately $2.9 billion, representing 9.9 per cent novo entry by other banking organizations seeking of the total commercial bank deposits in the State.1 to gain access to the Detroit banking market. Acquisition of Bank ($119.0 million in deposits) Approval of the proposal would also continue the XA11 banking data are as of December 31, 1975, and reflect 2The Detroit banking market is approximated by Macomb, Oakland and Wayne Counties. bank holding company formations and acquisitions approved through June 30, 1976. 3Bank ranks 35th out of the 351 banks in Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin □ September 1976 decline in the number of banking organizations clearly outweighed by benefits to the public in competing in the market, which number has been meeting the convenience and needs of the com­ reduced by 20 per cent from June 1970 to June munities to be served. 1975.4 Furthermore, the proposal would foreclose The financial and managerial resources and the development of future competition by remov­ prospects of Bank are satisfactory. The financial ing Bank as an independent competitor within the condition and managerial resources and prospects Detroit market. As an alternative to acquiring of Applicant and its subsidiary banks are regarded Bank, Applicant could enter de novo one of the as generally satisfactory. Although certain of Ap­ townships contiguous to Trenton or by branching plicant’s subsidiaries are in need of additional into one of those townships where home-office capital, Applicant has continued to show mean­ protection would not be a bar. On the basis of ingful progress in strengthening the overall capital the foregoing and other facts of record, the Board position of the holding company and its subsidi­ concludes that approval of the application would aries. Thus, the Board views banking factors as have significantly adverse competitive effects. not providing any weight either toward approval In acting on this application, the Board has or denial of the application. considered the comments of the Department of Considerations relating to the convenience and Justice and the Financial Institutions Bureau of the needs of the communities to be served, at best, Michigan Department of Commerce and Appli­ add only slight weight toward approval, as the only cant’s responses thereto. The Justice Department definite benefits that apparently will be derived indicated that, in its opinion, the proposed acqui­ from affiliation are some managerial and technical sition would eliminate existing and future compe­ assistance that Applicant would provide Bank.6 tition and lead to an increase in the concentration The Board finds that neither the considerations of commercial banking in Wayne County. Appli­ relating to banking factors nor to convenience and cant responded that, as set forth in the submission needs are sufficient to outweigh the significantly by the Michigan Financial Institutions Bureau, adverse competitive effects of Applicant’s pro­ Trenton, where Bank is headquartered, is not part posal. of the Detroit banking market and that the market On the basis of the facts in the record, and in in which to analyze the competitive effects of this light of the factors set forth in § 3(c) of the Act, proposal is defined as southern Wayne County and it is the Board’s judgment that approval of the the majority of Monroe County, Michigan. It is proposal would not be in the public interest. Ac­ the Board’s opinion, however, that the relevant cordingly, the application is denied for the reasons market for analyzing the competitive effects of this summarized above. proposal is the Detroit banking market which is By order of the Board of Governors, effective approximated by the Michigan counties of Ma­ August 24, 1976. comb, Oakland, and Wayne.5 In making such an analysis the Board finds, based on the foregoing and other facts of record, that competitive consid­ Voting for this action: Vice Chairman Gardner and erations relating to this application weigh Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. sufficiently against approval so that it should not be approved unless the anticompetitive effects are (Signed) Griffith L. Garwood, [seal] Assistant Secretary of the Board. 4In June 1970, there were 45 banking organizations operat­ ing in the Detroit market; by June 1975, there were 36 banking organizations in the market. 5The Federal Reserve Bank of Chicago undertook a field investigation in the Detroit area to determine the correct mar­ ket. This investigation was in response to Applicant’s defining 6 Applicant has indicated that it intends to suggest certain the Detroit market as comprising the Detroit metropolitan area changes to Bank concerning its operations which changes, if with the exception of the southern section of Wayne County implemented by Bank’s management, would result in some which includes Trenton. As a result of the field investigation benefits to the public. Most of the changes could be made and analysis of all the facts of record, the proper definition presently by Bank, but even if they were to be made only of the market for analyzing the competitive effects of the upon acquisition by Applicant, they would not provide signifi­ subject proposal is the three-county market. cant support for approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 797 Republic of Texas Corporation, four banks competing in the relevant banking Dallas, Texas market4 and holds approximately $43.8 million in deposits, representing about 52.7 per cent of the Order Approving Acquisition of Bank total deposits in commercial banks in the market. Applicant’s banking subsidiary closest to Bank is Republic of Texas Corporation, Dallas, Texas, located in Dallas, which is part of a separate a bank holding company within the meaning of banking market approximately 150 miles northeast the Bank Holding Company Act, has applied for of Bank’s market. Accordingly, no meaningful the Board’s approval under § 3(a)(3) of the Act competition presently exists between Bank and any (12 U.S.C. § 1842(a)(3)) to acquire all of the of Applicant’s subsidiary banks, and it is unlikely voting shares, less directors’ qualifying shares, of that significant competition between these institu­ First National Bank in Brownwood, Brown wood, tions would develop in the future in view of the Texas (“Bank”). distances involved and the State’s restrictive Notice of the application, affording opportunity branching law. In addition, the ratio of population for interested persons to submit comments and to banking offices for the relevant market and the views, has been given in accordance with § 3(b) per capita deposits in the market are significantly of the Act. The time for filing comments and views below the State averages, and the market is has expired, and the Board has considered the viewed, at best, as only marginally attractive for application and all comments received in light of de novo entry. Thus, consummation of this pro­ the factors set forth in § 3(c) of the Act (12 U.S.C. posal would have only a slightly adverse effect § 1842(c)). on potential competition. In view of the foregoing, Applicant, the fourth largest banking organi­ the Board concludes that the proposed acquisition zation in Texas, controls three subsidiary banks1 would have no adverse effect on existing or future with aggregate deposits of $2.9 billion, repre­ competition, and that its effect on potential com­ senting approximately 6.2 per cent of the total petition would be slightly adverse but outweighed commercial bank deposits in the State.2 The Board by considerations relating to the convenience and earlier approved Applicant’s acquisition of three needs of the community to be served. additional existing banks and one de novo bank.3 The Board has previously denied several appli­ The acquisitions of the existing banks have not cations by Texas’ largest bank holding companies yet been consummated, and the de novo bank has to acquire the leading banks in various banking not yet opened for business. Consummation of this markets in Texas.5 Although the instant proposal proposal would increase Applicant’s share of State involves Applicant’s acquisition of the largest deposits by approximately 0.1 per cent and would bank in the Brown County banking market, the not have a significant effect upon the concentration Board notes that this proposal differs materially of banking resources in the State. from those previously denied in that Bank and the Bank, presently a subsidiary of U.S. Banc­ Brown County banking market are substantially shares, Inc., (“Bancshares”) Brownwood, Texas, smaller than the banks and markets involved in a registered bank holding company that is now the denied proposals. in the process of liquidating its assets, is located The financial and managerial resources and fu­ in the city of Brownwood. Bank is the largest of ture prospects of Applicant, its subsidiary banks, and Bank are regarded as satisfactory. Consid- *In addition to its three subsidiary banks, Applicant indi­ rectly controls interests of less than 25 per cent in each of 4 The relevant banking market is approximated by Brown fourteen banks. County. 2All banking and market data are as of December 31, 1975. 5For example, see the Board’s Orders of December 28, 3On February 20, 1976, the Board approved Applicant’s 1973, denying the application of First International Bancshares, acquisitions of First National Bank of Henderson, Texas, and Inc., to acquire Citizens First National Bank of Tyler, Texas, First Bank in Groveton, Texas, 62 Federal Reserve Bulletin 60 Federal Reserve Bulletin 43 (1974); March 1, 1974, 269 (1976); on March 23, 1976, the Board approved Appli­ denying the application of First International Bancshares, Inc., cant’s acquisition of First Bank and Trust, Lufkin, Texas, 62 to acquire The First National Bank of Waco, Texas, 60 Federal Federal Reserve Bulletin 378 (1976); and on October 31, Reserve Bulletin 290 (1974); and May 1, 1974, denying 1975, the Federal Reserve Bank of Dallas, pursuant to dele­ the application of First City Bancorporation of Texas, Inc., gated authority, approved Applicant’s acquisition of Braes to acquire The Lufkin National Bank, Lufkin, Texas, 60 Bayou National Bank, Houston, Texas, a de novo bank. Federal Reserve Bulletin 450 (1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin □ September 1976 erations relating to the banking factors are con­ Regulation Y (12 CFR§ 225.4 (b)(2)), to acquire sistent with approval of the application. Consum­ 100 per cent of the outstanding shares of Green­ mation of the proposed affiliation is likely to result wood Life Insurance Company, San Antonio, in the expansion and improvement of the range Texas (“Company”), a company that will engage of services offered by Bank and in an increased in the activity of underwriting credit life insurance availability of credit. It appears from the facts of and credit accident and health insurance that is record that the economic base of the Brownwood directly related to extensions of credit by the bank community has been shifting in recent years from holding company system. Such activities have agricultural and extractive activities to manufac­ been determined by the Board to be closely related turing activities. As a result, the community now to banking (12 CFR § 225.4 (a)(10)). has industries which require more sophisticated Notice of the application, affording opportunity banking services and technical advice. Bank, for interested persons to submit comments and through affiliation with Applicant, would be better views on the public interest factors, has been duly able to meet these requirements. Accordingly, published (41 Federal Register 23759). The time considerations relating to the convenience and for filing comments and views has expired, and needs of the community to be served lend weight the Board has considered the application and all toward approval of the application and outweigh comments received in the light of the public inter­ the slightly adverse competitive effect of the ac­ est factors set forth in § 4(c)(8) of the Act (12 quisition. It is the Board’s judgment that the pro­ U.S.C. § 1843(c)(8)). posed acquisition would be in the public interest Applicant, the 34th largest banking organization and that the application should be approved. in Texas, controls one bank, National Bank of Fort On the basis of the record, the application is Sam Houston, San Antonio, with deposits of ap­ approved for the reasons summarized above. The proximately $129.2 million, representing 1.3 per transaction shall not be made (a) before the thir­ cent of the total deposits in commercial banks in tieth calendar day following the effective date of the State.1 this Order or (b) later than three months after the Company is an existing life insurance com­ effective date of this Order, unless such period pany,2 the activities of which are limited to rein­ is extended for good cause by the Board, or by surance of ordinary life policies issued by its the Federal Reserve Bank of Dallas pursuant to present parent company, Government Personnel delegated authority. Mutual Life Insurance Company (“GPMLIC”). By order of the Board of Governors, effective After consummation, Company would terminate August 23, 1976. its captive reinsurance activities for its present parent,3 and commence both reinsurance activities Voting for this action: Vice Chairman Gardner and and direct underwriting activities for Applicant. Governors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Chairman Burns. (Signed) Griffith L. Garwood, [seal] Assistant Secretary of the Board. *A11 banking data are as of December 31, 1975, and reflect bank holding company acquisitions and formations as of April 1, 1976. Orders Under Section 4 2 Company holds life insurance policies with a face value of $236,500 pursuant to reinsurance agreements with its present Of Bank Holding Company Act parent. It does so to qualify as an insurer, and thereby retain its charter, under the Texas Insurance Code. At the time of Fort Sam Houston Bankshares, Incorporated, consummation, Company will simultaneously reinsure approx­ imately $3.8 million face value of insurance in force formerly San Antonio, Texas underwritten by Bank’s present insurance underwriter in con­ nection with past extensions of credit by Bank. The reinsurance Order Approving Acquisition of transaction is to be undertaken to allow Company to retain Greenwood Life Insurance Company its charter; thereafter, Company will begin its underwriting activities. Fort Sam Houston Bankshares, Incorporated, 3 In order to ensure that Company will engage in no insurance San Antonio, Texas (“Applicant”), a bank hold­ activities carried over from its former parent that are imper­ missible for subsidiaries of bank holding companies, a clause ing company within the meaning of the Bank in the contract of sale between Applicant and GPMLIC pro­ Holding Company Act, has applied for the Board’s vides that the reinsurance agreements in existence between the two parties shall be terminated and that GPMLIC shall recap­ approval under § 4(c)(8) of the Act (12 U.S.C. ture all of such reinsurance, thereby relieving Company as § 1843(c)(8)) and § 225.4(b)(2) of the Board’s reinsurer immediately following consummation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 799 Since the proposal thus essentially involves a de to extend from one month to three months the novo activity, consummation of the transaction period during which coverage on the life of a would not have any significant adverse effects on borrower in default would continue. existing or potential competition in the relevant Although policies currently in use by Bank do market.4 not contain a suicide exclusion provision, Appli­ Credit life and credit accident and health insur­ cant proposes to include such a provision in its ance is generally made available by banks and policies from Company. The suicide exclusion is other lenders and is designed to assure repayment a standard provision in policies issued by the six of a loan in the event of death or disability of credit-related insurance subsidiaries of bank hold­ the borrower. In connection with its addition of ing companies presently doing business in Texas. credit insurance underwriting to the list of permis­ The Board does not view Applicant’s proposed sible activities for bank holding companies, the addition of the suicide exemption provision as Board stated: significantly reducing the net public benefits that To assure that engaging in the underwriting will result from the implementation of the other of credit life and credit accident and health elements of the Applicant’s proposal. Accord­ insurance can reasonably be expected to be ingly, the Board finds that Applicant’s proposed in the public interest, the Board will only premium rate reductions and its proposed increases approve applications in which an applicant in policy coverage, are procompetitive and in the demonstrates that approval will benefit the public interest. consumer or result in other public benefits. Based upon the foregoing and other consid­ Normally, such a showing would be made erations reflected in the record, including a com­ by a projected reduction in rates or increase mitment by Applicant to maintain on a continuing in policy benefits due to bank holding com­ basis the public benefits that the Board has found pany performance of this service. to be reasonably expected to result from this pro­ Applicant’s Bank, through two policies issued posal and upon which the approval of this proposal by an unaffiliated insurance company, now offers is based, the Board has determined that the balance to its customers credit life insurance on a single of the public interest factors the Board is required life in connection with installment and revolving to consider under § 4(c)(8) is favorable. Accord­ credit loans its originates. Rates now being ingly, the application is hereby approved. This charged for this coverage are 39.9 per cent below determination is subject to the conditions set forth maximum rates permitted by State law. Applicant in § 225.4(c) of Regulation Y and to the Board’s proposes to reduce current rates by 3.57 per cent authority to require such modification or termina­ resulting in rates that are 42.1 per cent below State tion of the activities of a holding company or any regulatory maxima. Applicant further proposes to of its subsidiaries as the Board finds necessary to begin offering coverage on single payment con­ assure compliance with the provisions and pur­ sumer loans and coverage on joint lives when poses of the Act and the Board’s regulations and applicable. The proposed rates for this coverage orders issued thereunder, or to prevent evasion are 3.55 per cent below State regulatory maxima. thereof. Moreover, Bank currently does not offer credit The transaction shall be made not later than accident and health insurance to its credit custom­ three months after the effective date of this Order, ers. Applicant proposes to provide this coverage unless such period is extended for good cause by at 3.51 per cent below State regulatory maxima. the Board or by the Federal Reserve Bank of As an additional public benefit, Applicant would Dallas, pursuant to authority hereby delegated. increase maximum credit life insurance coverage By order of the Board of Governors, effective from $10,000, the present maximum, to $20,000 August 6, 1976. except on revolving credit loans, where the limit would remain at $10,000. Applicant also proposes Voting for this action: Chairman Burns and Gover­ nors Wallich, Coldwell, Jackson, Partee, and Lilly. Absent and not voting: Governor Gardner. 4 The San Antonio SMSA is the relevant credit-related in­ (Signed) G riffith L. Garwood, surance market for purposes of analyzing the competitive effects of the proposal. [seal] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin □ September 1976 M ilwaukee W estern Corporation, deposits in commercial banks in Wisconsin.2 Ap­ plicant also owns 100 per cent of the common W est Palm Beach, Florida shares of Bayou Acceptance Corporation, Order Approving Acquisitions of M & H Financial Shreveport, Louisiana (“Bayou”),3 a commercial Corporation and Security Industrial Company finance company. Milwaukee Western Corporation, West Palm M&H (total assets of approximately $386,500 Beach, Florida, a bank holding company within as of January 24, 1976) and Security (total assets the meaning of the Bank Holding Company Act of approximately $452,000 as of January 24, (“Act”), has applied for the Board’s approval, 1976) are currently “captive” leasing and condi­ under § 4(c)(8) of the Act (12 CFR § 1843(c)(8)) tional sales companies financing sales of a subsid­ and § 225.4(b)(2) of the Board’s Regulation Y iary of Sterling, the United Technical Corporation (12 CFR § 225.4(b)(2)), to acquire all of the issued (“Unitec”). At present, M&H and Security pur­ and outstanding shares of M & H Financial Cor­ chase from Unitec specific products designated by poration (“M&H”) and of Security Industrial customers of Unitec and, thereafter, M&H leases, Company (“Security”), both of Broadview, Illi­ and Security finances under conditional sales con­ nois. M&H engages in the activity of full pay-out tracts, these products to Unitec’s customers. leasing of industrial machinery and equipment and Leasing transactions yield a return that compen­ related tools and accessories. Security engages in sates M&H for its full investment in the products the activity of financing the sale of industrial plus the estimated total costs of financing. Appli­ machinery and equipment through conditional cant has indicated that, upon approval of the sales contracts. Such activities have been deter­ proposed transaction, M&H and Security may mined by the Board to be closely related to bank­ expand the offering of these services to customers ing (12 CFR § 225.4(a)(1) and (6)(a)). other than those of Unitec. Notice of the applications, affording opportunity The combined service area for M&H and Secu­ for interested persons to submit comments and rity includes the states of Illinois, Indiana, Iowa, views on the public interest factors, has been duly Michigan and Wisconsin. Although Applicant en­ published (41 Fed. Reg. 26958 (1976)). The time gages in commercial financing through Bank and for filing comments and views has expired, and Bayou, acquisition of M&H and Security will the Board has considered the applications and all eliminate no significant existing competition be­ comments received in light of the public interest tween them and Bayou since Bayou’s service area factors set forth in § 4(c)(8) of the Act (12 U.S.C. is the southern and southwestern portion of the § 1843(c)(8)). United States and neither Security nor M&H Applicant is a direct subsidiary of Sterling Pre­ derives any business from this service area. Within cision Corporation, also of West Palm Beach, its service area, M&H and Security compete with Florida (“Sterling”).1 Sterling currently owns all numerous sizable leasing and commercial finance of the issued and outstanding voting shares of companies and numerous other national and re­ M&H and Security, and, through Applicant, con­ gional diversified financing companies. M&H and trols one bank, the Milwaukee Western Bank, Security provide financial services amounting to Milwaukee, Wisconsin (“Bank”). Bank is the a very small percentage of all such similar finan­ 26th largest banking organization in Wisconsin, cial service activities provided by similarly en­ with total deposits of approximately $77.7 million, gaged companies within this combined service representing approximately 0.5 per cent of total area. Although Applicant appears to possess the financial resources for de novo entry into the combined service area, Applicant’s acquisition of M&H and Security from its parent company would 1 Sterling owns 90.5 per cent of the voting shares of Appli­ cant, which acquired control of Bank on May 8, 1969. By virtue of the passage of the 1970 Amendments to the Act, both Sterling and Applicant became subject to the provisions 2All banking and financial data are as of December 31, 1975, of the Act and registered with the Board as bank holding unless otherwise indicated. companies. Pursuant to § 4(c)(12) of the Act and § 225.4(d) 3Applicant acquired control of Bayou on May 8, 1969. of Regulation Y, Sterling filed an irrevocable declaration, dated Applicant is entitled, under section 4(a)(2) of the Act, to retain July 2, 1971, that it will cease to be a bank holding company the shares of Bayou until December 31, 1980, unless Applicant by divesting itself of its shares of Applicant prior to January applies for, and is granted, permission by the Board to retain 1, 1981. Bayou as a subsidiary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 801 not adversely affect potential competition as the (“Applicant”), a bank holding company within transaction appears to be merely a corporate reor­ the meaning of the Bank Holding Company Act ganization and, given their small size, the acquisi­ (“Act”), has applied for the Board’s approval, tion of these companies will constitute only a under § 4(c)(8) of the Act (12 U.S.C. § foothold entry by Applicant into this market area. 1843(c)(8)) and § 225.4(b)(2) of the Board’s Reg­ Accordingly, it does not appear that these acquisi­ ulation Y (12 C.F.R. § 225.4(b)(2)), to acquire tions will eliminate any significant amount of ac­ shares of Old National Life Insurance Company, tual or potential competition. Phoenix, Arizona (“Company”), a company that There is no evidence in the record to indicate will engage de novo in the activity of underwriting, that consummation of the proposed transactions as reinsurer, credit life and credit accident and would result in any undue concentration of re­ health insurance directly related to extensions of sources, unfair competition, conflicts of interest, credit by Applicant’s lending subsidiaries in the unsound banking practices or other adverse effects State of Washington. Such activity has been de­ upon the public interest. The acquisitions would termined by the Board to be closely related to appear to place Applicant in a position to compete banking (12 C.F.R. § 225.4(a)(10)). more effectively with large and medium-size di­ Notice of the application, affording opportunity versified finance companies that operate on a na­ for interested persons to submit comments and tional and/or regional basis. views on the public interest factors, has been duly Based upon the foregoing and other consid­ published (41 Federal Register 24634). The time erations reflected in the record, the Board has for filing comments and views has expired, and determined that the balance of the public interest the Board has considered the application and all factors the Board is required to consider under § comments received in the light of the public inter­ 4(c)(8) is favorable. Accordingly, the applications est factors set forth in § 4(c)(8) of the Act. are hereby approved. This determination is subject Applicant, the fifth largest banking organization to the conditions set forth in § 225.4(c) of Regu­ in Washington, controls two subsidiary banks with lation Y and to the Board’s authority to require aggregate deposits of approximately $605.5 mil­ such modification or termination of the activities lion, representing approximately 6.1 per cent of of a holding company or any of its subsidiaries the total deposits in commercial banks in the as the Board finds necessary to assure compliance State.1 Applicant also engages, through nonbank with the provisions and purposes of the Act and subsidiaries, in equipment leasing, mortgage the Board’s regulations and orders issued banking and servicing, investment advising and thereunder, or to prevent evasion thereof. insurance agency activities. The transactions shall be made not later than Company will engage de novo in the activity three months after the effective date of this Order, of underwriting, as reinsurer, credit life and credit unless such period is extended for good cause by accident and health insurance in connection with the Board or by the Federal Reserve Bank of extensions of credit by Applicant’s lending sub­ Chicago, pursuant to authority that is hereby dele­ sidiaries. Company will be formed as an Arizona gated. insurance corporation and will be qualified to un­ By order of the Board of Governors, effective derwrite insurance directly only in Arizona. Ac­ August 27, 1976. cordingly, the insurance sold by Applicant’s lend­ ing subsidiaries will be directly underwritten by Voting for this action: Vice Chairman Gardner and an unaffiliated insurance company qualified to do Governors Wallich, Coldwell, Partee, and Lilly. Absent and not voting: Chairman Burns and Governor Jackson. business in Washington, and will thereafter be assigned or ceded to Company under a reinsurance (Signed) R ichard D. A braham son, agreement. Since Applicant proposes to engage in [seal] Assistant Secretary of the Board. this activity de novo, consummation of the trans­ action would not have any significant adverse Old National Bancorporation, effects on existing or potential competition in any Spokane, Washington relevant market. Credit life and credit accident and health insur - Order Approving Acquisition of Shares of Old National Life Insurance Company Old National Bancorporation (formerly Wash­ ington Bancshares, Inc.), Spokane, Washington *A11 banking data are as of December 31, 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin □ September 1976 ance are generally made available by banks and three months after the effective date of this Order, other lenders and are designed to assure repayment unless such period is extended for good cause by of a loan in the event of death or disability of the Board or by the Federal Reserve Bank of San the borrower. In connection with its addition of Francisco. the underwriting of such insurance to the list of By order of the Board of Governors, effective permissible activities for bank holding companies, August 18, 1976. the Board stated: Voting for this action: Vice Chairman Gardner and Governors Wallich, Coldwell, Jackson, and Partee. To assure that engaging in the underwriting of credit Absent and not voting: Chairman Burns and Governor life and credit accident and health insurance can reason­ Lilly. ably be expected to be in the public interest, the Board will only approve applications in which an applicant (Signed) Griffith L. Garwood, demonstrates that approval will benefit the consumer or result in other public benefits. Normally, such a showing [seal] Assistant Secretary of the Board. would be made by a projected reduction in rates or increase in policy benefits due to bank holding company performance of this service. (12 C.F.R. § 225.4(a)(10) n. 7) Union Trust Bancorp, Applicant has stated that following consumma­ Baltim ore, M aryland tion of the proposed acquisition, Company will Order Approving Acquisition of Nonbank Assets offer the several types of credit-related insurance that it will reinsure at premium rates ranging from Union Trust Bancorp, Baltimore, Maryland 3.3 per cent to 20.0 per cent below the maximum (“Applicant”), a bank holding company within allowable rates in the State of Washington for the meaning of the Bank Holding Company Act example, reducing term joint life insurance and (“Act”), has applied for the Board’s approval level term joint life insurance will be offered at under section 4(c)(8) of the Act and § 225.4(b)(2) rates 12.0 and 18.8 per cent, respectively, below of the Board’s Regulation Y to acquire all of the the maximum allowable rates. In addition, credit assets of Fidelity Finance Company, Elkins, West accident and health insurance will be offered at Virginia (“Company”), through Landmark Fi­ rates 5 per cent below the statutory maximum. nance Corporation of West Virginia, a wholly- Applicant has committed to similar rate reductions owned subsidiary of Applicant’s direct subsidiary, for each type of insurance coverage that Company Landmark Financial Services, Inc., Silver Spring, will underwrite. The Board is of the view that Maryland. Company is engaged in the activity of Applicant’s proposed reductions in insurance pre­ making instalment loans to individuals for per­ miums are procompetitive and in the public inter­ sonal, family or household purposes under a small est. loan license issued by the State of West Virginia. Based upon the foregoing and other consid­ It also acts as agent in the sale of credit life erations reflected in the record, including a com­ insurance directly related to its extensions of mitment by Applicant to maintain on a continuing credit. In addition, Applicant proposes that Com­ basis the public benefits which the Board has found pany would engage de novo in the activities of to be reasonably expected to result from this pro­ purchasing sales finance contracts executed in posal and upon which the approval of this proposal connection with the sale of personal, family or is based, the Board has determined that the balance household goods or services; and acting as agent of the public interest factors the Board is required in the sale of credit accident and health insurance to consider under § 4(c)(8) is favorable. Accord­ related to its extensions of credit and insurance ingly, the application is hereby approved. This protecting collateral held against such extensions determination is subject to the conditions set forth of credit. Such activities have been determined by in § 225.4(c) of Regulation Y and to the Board’s the Board to be closely related to banking (12 CFR authority to require such modification or termina­ § 225.4(a)(1) and (9)). tion of the activities of a holding company or any Notice of the application, affording opportunity of its subsidiaries as the Board finds necessary to for interested persons to submit comments and assure compliance with the provisions and pur­ views on the public interest factors has been duly poses of the Act and the Board’s regulations and published (41 Federal Register 23486). The time orders issued thereunder, or to prevent evasion for filing comments and views has expired and the thereof. Board has considered the application and all com­ The transaction shall be made not later than ments received in light of the public interest factors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 803 set forth in section 4(c)(8) of the Act (12 U.S.C. in accordance with the provisions of section § 1843(c)(8)). 4(c)(8) of the Act, that consummation of the Applicant, the fifth largest banking organization proposal can reasonably be expected to produce in Maryland, controls a bank with total deposits benefits to the public that outweigh possible ad­ of approximately $700 million,1 representing 8.0 verse effects. Accordingly, the application is per cent of total bank deposits in the State. hereby approved. This determination is subject to Company is a consumer finance company, the conditions set forth in § 225.4(c) of Regulation operating one office in Elkins, West Virginia. Y (12 CFR § 225.4(c)) and to the authority of Company has total net receivables of approxi­ the Board to require such modification or termina­ mately $166,000, which represents 24.6 per cent tion of the activities of a holding company or any of the total loans originated by consumer finance of its subsidiaries as the Board may find necessary companies in the relevant market,2 and ranks as to assure compliance with the provisions and pur­ the smaller of two such companies operating in poses of the Act and the Board’s regulations or the market. Applicant’s subsidiary, Landmark Fi­ orders issued thereunder, or to prevent evasion nancial Services, Inc. (“Landmark”), is also a thereof. consumer finance company operating 48 offices in The transaction shall be made not later than nine southeastern states, including two offices in three months after the effective date of this Order West Virginia. The office of Landmark closest to unless such period is extended for good cause by Company is located 84 miles away in Keyser, the Board or by the Federal Reserve Bank of West Virginia. It appears that no business is Richmond, pursuant to authority hereby delegated. derived by Applicant or its subsidiaries from By order of the Secretary of the Board, acting Company’s market area and that Company derives pursuant to delegated authority from the Board of no business from the market areas of Applicant Governors, effective August 9, 1976. and its subsidiaries. Therefore, consummation of (Signed) Griffith L. Garwood, the proposed acquisition would not result in the [seal] Assistant Secretary of the Board. elimination of any existing competition between Applicant and Company. Nor would any signifi­ Orders Under Sections cant potential competition between the two be 3 & 4 of Bank Holding Company Act eliminated by approval of the proposal, since it appears unlikely that Applicant would enter the Com m unity Bancshares, Inc., relevant market on a de novo basis. Forest Green, M issouri Acquisition of Company by Applicant should provide Company with access to a larger and more Order Approving stable source of funds, thereby enabling it to Formation of Bank Holding Company become a more effective competitor. In addition, and Engaging in Insurance Agency Activities Applicant proposes to expand the loan services Community Bancshares, Inc., Forest Green, offered by Company and provide, as agent, addi­ Missouri, has applied for the Board’s approval tional credit-related insurance services de novo. under § 3(a)(1) of the Bank Holding Company Act Moreover, there is no evidence in the record (12 U.S.C. § 1842(a)(1)) of formation of a bank indicating that consummation of the proposed holding company through the acquisition of 80 per transaction would result in any undue concentra­ cent or more of the voting shares of The Merchants tion of resources, unfair competition, conflicts of and Farmers Bank of Salisbury, Salisbury, Mis­ interests, unsound banking practices or other ad­ souri (“Bank”).1 At the same time, Applicant has verse effects on the public interest. applied pursuant to § 4(c)(8) of the Act (12 U.S.C. Based on the foregoing and other considerations § 1843(c)(8)) and § 225.4(b)(2) of the Board’s reflected in the record, the Board has determined, *A11 banking and financial data are as of December 31, 1975, 1Bank, formerly The Farmers Bank of Forest Green, Forest and reflect holding company formations and acquisitions by Green, Missouri, has received the approval of the Commis­ the Board through June 30, 1976. sioner of Finance of the State of Missouri to relocate its main 2 The relevant geographic market for purposes of analyzing banking facility in the City of Salisbury, nine miles northeast the anticompetitive effects of the subject proposal is approxi­ of Forest Green. This relocation is being accompanied by a mated by an area within a ten mile radius of Elkins, West change in Bank’s corporate title to The Merchants and Farmers Virginia. Bank of Salisbury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin □ September 1976 Regulation Y, for permission to acquire the assets not have any significant adverse effects on existing of Miller & Associates, Forest Green, Missouri, or potential competition, nor would it increase the and thereby engage in the sale of credit life and concentration of banking resources in any relevant credit accident and health insurance directly re­ area. Accordingly, it is concluded that competitive lated to extensions of credit by Bank. Such activi­ considerations are consistent with approval of the ties have been determined by the Board in § application to form a bank holding company. 225.4(a)(9)(ii)(a) of Regulation Y to be permissi­ The financial condition, managerial resources, ble for bank holding companies subject to Board and prospects of Bank are regarded as satisfactory approval of individual proposals in accordance and consistent with approval of the application. with the procedure of § 225.4(b) of Regulation The management of Applicant is satisfactory, and Y. Applicant’s financial condition and prospects, Notice of the applications affording opportunity which are dependent upon the profitable operations for interested persons to submit comments and of Bank and Applicant’s insurance activities, ap­ views, has been given in accordance with §§ 3 pear favorable. Although Applicant will incur debt and 4 of the Act (41 Federal Register 26076). in connection with this proposal, the projected The time for filing comments and views has ex­ income from Bank and the insurance activities of pired, and the Board has considered the applica­ Applicant should provide Applicant with sufficient tions and all comments received in light of the revenue to service its debt without impairing the factors set forth in § 3(c) of the Act (12 U.S.C. financial condition of Bank. Accordingly, consid­ § 1842(c)), and the considerations specified in § erations relating to banking factors are consistent 4(c)(8) of the Act. with approval of the application. Although con­ Applicant is a nonoperating corporation recently summation of the proposal would have no imme­ organized for the purpose of becoming a bank diate effect on banking services offered by Bank, holding company through the acquisition of Bank considerations relating to convenience and needs and engaging in the sale as agent of credit life are also regarded as being consistent with approval and credit accident and health insurance directly of the application to acquire Bank. Therefore, the related to extensions of credit by Bank. The pro­ Board concludes that consummation of the pro­ posed transaction involves the transfer of control posal to form a bank holding company would be of Bank from individuals to a corporation owned consistent with the public interest and that the by the same individuals. Bank ($2.6 million in application should be approved. deposits) ranks 652nd among Missouri banks and In connection with the application to become is the fifth largest of six banks in the Chariton a bank holding company, Applicant has also ap­ County banking market (the relevant market), plied, pursuant to § 225.4(a)(9)(ii)(a) of Regula­ controlling approximately 5.2 per cent of the total tion Y, to acquire the assets of Miller & Asso­ deposits in commercial banks in the market.2 Upon ciates,3 and thereby engage in the sale of credit acquisition of Bank, Applicant would control less life and credit accident and health insurance di­ than .01 per cent of total commercial bank deposits rectly related to extensions of credit by Bank. It in Missouri. does not appear that Applicant’s engaging in the Applicant’s principals are also associated with above-described activities would have any signifi­ the Callao Community Bank, Callao, Missouri, cant adverse competitive effects. Furthermore, and Wellington Bank, Wellington, Missouri, the there is no evidence in the record indicating that closest of which is located approximately 30 miles consummation of the proposal would result in any north of Bank and in a separate banking market. undue concentration of resources, unfair competi­ There appears to be no existing competition be­ tion, conflicts of interests, unsound banking prac­ tween either of these banks and Bank, and it tices or other adverse effects on the public interest. appears unlikely that such competition would de­ Based on the foregoing and other considerations velop in the future. Moreover, since Applicant has reflected in the record, the Board has determined no existing subsidiaries and the proposal represents merely a restructuring of Bank’s ownership, it appears that consummation of the proposal would 3 Miller & Associates is an insurance agency that is presently owned by Applicant’s principals as a joint venture and which engages solely in the sale of credit life and credit accident and health insurance directly related to extensions of credit 2All banking data are as of December 31, 1975. by Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 805 that the considerations affecting the competitive between Overseas Technology, Inc. (“OTI”), factors under § 3(c) of the Act and the balance (which is a subsidiary of Overseas Technology of the public interest factors the Board must con­ Investment Co., Inc., (“OTICI”) a Japanese sider under § 4(c)(8) both favor approval of Ap­ company owned by Industrial Bank of Japan, New plicant’s proposals. Japan Securities Co., Central Glass Co., Toyo Accordingly, the applications are approved for Soda Co. Ltd., Dai Nippon Securities and various the reasons summarized above. The acquisition of individuals, all of which are either Japanese cor­ Bank shall not be made before the thirtieth calen­ porations or citizens) and Kibun California, Inc. dar day following the effective date of this Order. (“KCI”), a subsidiary of Kibun Co., Ltd., The acquisition of Bank and the commencement (“Kibun”) a Japanese corporation, has requested of insurance agency activities shall be made not a determination, pursuant to the provisions of later than three months after the effective date of section 2(g)(3) of the Bank Holding Company Act this Order, unless such period is extended for good of 1956 (12 U.S.C. § 1841(g)(3)) (“the Act”), cause by the Board,j or by the Federal Reserve that Tri-State is not in fact capable of controlling Bank of Kansas City pursuant to delegated au­ Oceanic, notwithstanding the fact that the pro­ thority. The determination as to Applicant’s insur­ posed sale agreement provides that a portion of ance activities is subject to the conditions set forth the purchase price is to be paid by Oceanic in in § 225.4(c) of Regulation Y and to the Board’s the form of a note, said note being secured by authority to require reports by, and make exami­ a pledge of the shares being sold. nations of, holding companies and their subsidi­ Under the provisions of § 2(g)(3) of the Act, aries and to require such modification or termina­ shares transferred after January 1, 1966, by any tion of the activities of a bank holding company Bank holding company to a transferee that is or any of its subsidiaries as the Board finds neces­ indebted to the transferor or has one or more sary to assure compliance with the provisions and officers, directors, trustees, or beneficiaries in purposes of the Act and the Board’s regulations common with or subject to control by the trans­ and orders issued thereunder, or to prevent eva­ feror, are deemed to be indirectly owned or con­ sions thereof. trolled by the transferor unless the Board, after By order of the Board of Governors, effective opportunity for hearing, determines that the trans­ August 27, 1976. feror is not in fact capable of controlling the transferee. Voting for this action: Vice Chairman Gardner and Notice of an opportunity for hearing with re­ Governors Wallich, Coldwell, Partee, and Lilly. Absent and not voting: Chairman Burns, and Governor Jackson. spect to Tri-State’s request for determination under § 2(g)(3) was published in the Federal Register (Signed) Richard D. Abrahamson, on June 17, 1976 (41 Federal Register 24630). [seal] Assistant Secretary of the Board. The time provided for requesting a hearing expired on July 9, 1976. No such request has been received Orders Under Section 2(g)(3) by the Board, nor has any evidence been received of Bank Holding Company Act to show that Tri-State is in fact capable of con­ trolling Oceanic. Bancal Tri-State Corporation, The aggregate amount of debt owed by Oceanic San Francisco, California to Tri-State and its subsidiary bank does not con­ stitute a substantial portion of the consolidated Order Granting Determination debt, consolidated assets or consolidated net worth under the Bank Holding Company Act of Kibun or the principal member of the consor­ BanCal Tri-State Corporation, San Francisco, tium of corporations and individuals owning California (“Tri-State”), which proposes to OTICI (“Consortium”). Kibun and the corporate transfer all of its legal and equitable stockholdings, members of Consortium are substantial, inde­ as well as the stockholdings of The Bank of pendent, publicly held corporations. There are no California, N.A., San Francisco, California common directors, officers or owners between (“Bank”), a subsidiary of Tri-State, in BanCal Tri-State and Oceanic. Although employees of Capital Corporation (“Capital”), a small business Tri-State and its subsidiaries have been serving investment company, to Oceanic Group, Inc., San Capital as needed, this arrangement will terminate Francisco, California (“Oceanic”), a joint venture upon consummation of the proposed transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin □ September 1976 There have been no prior business transactions or pany within the meaning of section 2(a) of the relationships between Tri-State and Oceanic other Bank Holding Company Act of 1956, as amended than one investment by Capital that is associated (12 U.S.C. § 1841(a)) (“Act”), by virtue of its with the proposed sale of Capital, and it appears ownership of 99.95 per cent of the issued and that the proposed sale of Capital was negotiated outstanding voting shares of The Bank of Califor­ at arm’s length. The terms of the proposed contract nia, N.A. (“Bank”), San Francisco, California, of sale gives Tri-State no right to vote, transfer has requested a determination, pursuant to § or sell the shares of Capital during the term of 2(g)(3) of the Act (12 U.S.C. § 1841 (g)(3)), that the indebtedness unless Oceanic should default on neither Tri-State nor Bank is in fact capable of the indebtedness. The Executive Committee of the controlling Western Pacific Financial Corporation Board of Directors of Tri-State has passed a reso­ (“West Pac”), San Bernardino, California, not­ lution to the effect that Tri-State does not, and withstanding the fact that West Pac is indebted will not attempt to, exercise a controlling influence to Bank. Bank has sold all of its stock-holdings over Oceanic and that Tri-State will immediately in BanCal Mortgage Company, formerly a direct notify the Board should it exercise its rights to subsidiary of Bank, pursuant to an agreement vote, transfer or sell the shares of Capital in the dated November 5, 1975. event of such a default or if Tri-State otherwise Under the provisions of § 2(g)(3) of the Act accomplishes a recision of the proposed transac­ (12 U.S.C. § 1841(g)(3)), shares transferred after tion. The Board of Directors of Oceanic has passed January 1, 1966, by any bank holding company a resolution to the effect that Tri-State is incapable to a transferee that is indebted to the transferor of controlling Oceanic and that there will be no or has one or more officers, directors, trustees, common directors or officers between Tri-State and or beneficiaries in common with or subject to Oceanic. control by the transferor, are deemed to be indi­ Based on these and other facts of record, it is rectly owned or controlled by the transferor unless hereby determined that Tri-State is not in fact the Board, after opportunity for hearing, deter­ capable of controlling Oceanic. mines that the transferor is not in fact capable of Accordingly it is ordered, that the request of controlling the transferee. Tri-State for a determination pursuant to § 2(g)(3) Tri-State has submitted to the Board evidence be and hereby is granted. Any material change to support its contention that Tri-State does not in the facts or circumstances relied upon by the in fact control West Pac. Board in making this determination or any material Notice of an opportunity for hearing with re­ breach of any of the commitments upon which the spect to Tri-State’s request for a determination Board based its decision could result in the Board under § 2(g)(3) was published on January 15, 1976 reconsidering the determination made herein. In [41 Fed. Reg. 2279 (1976)]. The time provided particular, this determination is conditioned upon for requesting a hearing has expired. No such Oceanic succeeding to the obligations, as well as request has been received by the Board. the rights, of OTI under the Stock Purchase It is hereby determined that neither Tri-State nor Agreement dated February 27, 1976 between OTI Bank is in fact capable of controlling West Pac. and the sellers of Capital. This determination is based upon the evidence of By order of the Board of Governors, acting record in this matter, including the following facts. through its General Counsel, pursuant to delegated West Pac is a publicly-owned corporation of sub­ authority (12 CFR § 265.2(b)(1)), effective August stantial size and is unaffiliated with Tri-State or 24, 1976. Bank. West Pac has historically maintained a (Signed) Griffith L. Garwood, credit relationship with Bank, although this has [seal] Assistant Secretary of the Board. not appeared to have conferred control by Bank over West Pac, but rather was established in the BanCal Tri-State Corporation, normal course of business to aid West Pac in the San Francisco, California independent conduct of its mortgage financing operations. No security interest was retained in the Order Granting Determination assets of Mortgage transferred to West Pac, and Under Bank Holding Company Act although Bank increased the line of credit it made BanCal Tri-State Corporation (“Tri-State”), available to West Pac following the transfer, the San Francisco, California, a bank holding com­ increase was not extended to provide West Pac Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 807 with funds for the purchase of Mortgage, but rather Accordingly, it is ordered, thaf the request of was made to assist West Pac in the servicing of Tri-State for a determination pursuant to § 2(g)(3) the business it acquired through Mortgage. West be and hereby is granted. Any material change Pac’s initial borrowings on this increased line of in the facts or circumstances relied upon by the credit have already been significantly repaid. Fur­ Board in making this determination or any material thermore, the sale of Mortgage to West Pac ap­ breach of any of the commitments upon which the pears to have been the result of arms-length nego­ Board based its decision could result in the Board tiations, and there are no interlocking officer or reconsidering the determination made herein. director relationships between Tri-State or its sub­ By order of the Board of Governors, acting sidiaries and West Pac. The Board of directors through its General Counsel, pursuant to delegated of West Pac has submitted a resolution disclaiming authority (12 CFR 265.2(b)(1)), effective August control over West Pac by Tri-State or its subsidi­ 24, 1976. aries, and a similar resolution by the board of directors of Tri-State was submitted disclaiming (Signed) Griffith L. Garwood, control over West Pac. [seal] Assistant Secretary of the Board. Orders Approved Under Bank Holding Company Act By the Board of Governors During August 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 First Security Corporation, First Security Bank 8/11/76 41 F.R. 35033 Salt Lake City, Utah of Orem, National 8/18/76 Association, Orem, Utah First Yukon Bankshares, First National Bank 8/6/76 41 F.R. 34366 Inc., Oklahoma City, of Yukon, Yukon, 8/13/76 Oklahoma Oklahoma Harvard State Company, Harvard State Bank, 8/25/76 41 F.R. 36701 Harvard, Nebraska Harvard, Nebraska 8/31/76 Tennessee National Bancshares, Citizens State Bank, 8/13/76 41 F.R. 35092 Inc., Maryville, Tennessee McMinnville, and Bank of 8/19/76 Cannon County, Woodbury, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin □ September 1976 Order Approved Under the Bank Merger Act— By Federal Reserve Banks During August 1976, application was approved by the Federal Reserve Bank as listed below. The order has been published in the Federal Register, and copies are available upon request to the Reserve Bank. Federal Reserve Effective Register Applicant Bank(s) Bank date citation Seattle Trust and First National San Francisco 8/18/76 41 FR. 89388 Savings Bank, Bank of Redmond, 9/15/76 Seattle, Redmond, Washington Washington Pending Cases Involving the Board of Governors* First Security Corporation v. Board of Gover­ April 1976, U.S.D.C. for the District of nors, filed August 1976, U.S.C.A. for the Columbia Circuit. 10th Circuit. Farmers & Merchants Bank of Las Cruces, Anthony R. Martin-Trigona v. Board of Gov­ New Mexico v. Board of Governors, filed ernors, filed August 1976, U.S.C.A. for the April 1976, U.S.C.A. for the District of District of Columbia. Columbia Circuit. First State Bank of Clute, Texas, etal. v. Board United States ex rel. A.R. Martin-Trigona v. of Governors, filed July 1976, U.S.C.A. for Arthur F. Burns, et al., March 1976, the 5th Circuit. U.S.D.C. for the District of Columbia. International Bank v. Board of Governors, et Grandview Bank & Trust Company v. Board al., filed July 1976, U.S.D.C. for the District of Governors, filed March 1976, U.S.C.A. of Columbia. for the Eighth Circuit. North Lawndale Economic Development Cor­ Association of Bank Travel Bureaus, Inc. v. poration v. Board of Governors, filed June Board of Governors, filed February 1976, 1976, U.S.C.A. for the 7th Circuit. U.S.C.A. for the Seventh Circuit. Central Wisconsin Bankshares, Inc. v. Board Memphis Trust Company v. Board of Gover­ of Governors, filed June 1976, U.S.C.A. for nors, filed February 1976, U.S.D.C. for the the 7th Circuit. Western District of Tennessee. A.R. Martin-Trigona v. Board of Governors, First Lincolnwood Corporation v. Board of et al., filed June 1976, U.S.D.C. for the Governors, filed February 1976, U.S.C.A. District of Columbia. for the Seventh Circuit. Save Needed Environmental Levels League v. Helen C. Hatten, et al. v. Board of Governors, Southern California Company, et al., filed filed January 1976, U.S.D.C. for the District May 1976, U.S.D.C. for the Central District of Connecticut. of California. International Bank v. Board of Governors, filed National Urban League, et al. v. Office of the December 1975, U.S.C.A. for the District of Comptroller of the Currency, et al., filed Columbia. Roberts Farms, Inc. v. Comptroller of the Cur­ rency, etal., filed November 1975, U.S.D.C. for the Southern District of California. National Computer Analysts, Inc. v. Decimus *This list of pending cases does not include suits against Corporation, et al., filed November 1975, the Federal Reserve Banks in which the Board of Governors is not named a party. U.S.D.C. for the District of New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 809 tPeter E. Blum v. First National Holding Cor­ Curvin J. Trone v. United States, filed April poration, filed November 1975, U.S.D.C. for 1975, U.S. Court of Claims. the Northern District of Georgia, Louis J. Roussel v. Board of Governors, filed tPeter E. Blum v. Morgan Guaranty Trust Co., April 1975, U.S.D.C. for the Eastern District et al., filed October 1975, U.S.D.C. for the of Louisiana. Northern District of Georgia, Georgia Association of Insurance Agents, et al. tLogan v. Secretary of State, et al., filed Sep­ v. Board of Governors, filed October 1974, tember 1975, U.S.D.C. for the District of U.S.C.A. for the Fifth Circuit. Columbia. Alabama Association of Insurance Agents, et Florida Association of Insurance Agents, Inc., al. v. Board of Governors, filed July 1974, v. Board of Governors, and National Asso­ U.S.C.A. for the Fifth Circuit, ciation of Insurance Agents, Inc. v. Board tInvestment Company Institute v. Board of Gov­ of Governors, filed August 1975, actions ernors, dismissed July 1975, U.S.D.C. for consolidated in U.S.C.A. for the Fifth Cir­ the District of Columbia, appeal pending, cuit. U.S.C.A. for the District of Columbia Cir­ t$DavidR. Merrill, etal. v. Federal Open Market cuit. Committee of the Federal Reserve System, East Lansing State Bank v. Board of Gover­ filed May 1975, U.S.D.C. for the District of nors, filed December 1973, U.S.C.A. for the Columbia, appeal pending, U.S.C.A. for the Sixth Circuit, District of Columbia. tConsumers Union of the United States, Inc., etal. v. Board of Governors, filed September 1973, U.S.D.C. for the District of Columbia. tDecisions have been handed down in these cases, subject Bankers Trust New York Corporation v. Board to appeals noted. of Governors, filed May 1973, U.S.C. A. for tThe 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

811 Announcements proposals, but not under the amendment as REGULATION Z: Amendments adopted. The Board of Governors of the Federal Reserve The amendments also— System has adopted changes in its Regulation Z 1. Provide that, when a transaction did not take (Truth in Lending) for identifying transactions place at a seller’s fixed business location, an ap­ charged to consumers using open-end charge ac­ propriate identifying designation may be used for counts, such as charges on credit-card billing transactions that take place by mail, by phone, statements or department store accounts, effective at a customer’s home, or on a public conveyance, August 31, 1976. The amendments to Regulation such as a plane or train. Z, as adopted, differed only slightly from pro­ 2. In the case of purchases in a foreign country, posals published for comment May 12, 1976. allow the creditor to identify the transaction by The portions of Regulation Z now amended by date of debit, instead of date of purchase, and the Board had originally been adopted effective require the creditor to treat any resulting inquiry last October 28, together with other amendments by the customer as triggering the billing error to the regulation implementing the separate but procedures under the Fair Credit Billing Act. related Fair Credit Billing Act. The original iden­ 3. Provide that disclosure of a seller’s name in tification of transaction rules would have required the same way as it appears on a sales voucher that, effective July 1, 1976, if other information is adequate identification of the seller. were not available to identify a sale, a number or symbol (for instance, a voucher number) must appear on the billing statement. The May 12 REGULATION B: Requirement proposal to change this rule suspended the July 1 deadline. The Board of Governors announced on September As adopted, this provision is amended as fol­ 2, 1976, that it would retain the existing require­ lows: ment in its Regulation B (Equal Credit Opportu­ 1. In a two-party transaction (generally involv­ nity) that creditors report credit histories in the ing only the customer and the merchant) if the names of both husband and wife when the account seller cannot provide a description of the property is shared. or services required to identify the transaction on At the same time, the Board postponed the a billing statement, he may use a voucher number. effective date of the requirement from November 2. If, however, the customer cannot identify the 1, 1976, to June 1, 1977. transaction from the voucher number, the creditor The provision of the regulation concerned (Sec­ would be required to treat any resulting inquiry tion 202.6) requires creditors to furnish credit from the customer as a billing error. This would information “in the name of each spouse.” The trigger the billing error settlement procedures Board asked on May 25, 1976, for public comment under the Fair Credit Billing Act, including the on a possible change of this language to permit following: no finance charge on the transaction creditors to report credit information relating to until the matter is settled; an additional period free a shared account of a married couple “in a manner of finance charges if the creditor normally allows reflecting the participation of both spouses.” such a period after billing; and provision of a copy In view of generally unfavorable comment, the of the sales voucher to the customer without Board decided to retain the existing language that charge. in effect calls for credit-reporting agencies to Creditors in three-party transactions—involving maintain two separate files for married couples the customer, merchant, and credit-card issuer sharing an account, but to extend the effective date other than the merchant—would have had this in order to give creditors more time for revision alternative available to them under the May 12 of their files and recordkeeping systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin □ September 1976 in U.S. dollars as well as in the currencies of the OVERSEAS BRANCHES countries where the branches are located and in OF MEMBER BANKS: other foreign currencies. Assets and Liabilities Total assets of the overseas branches of member INDUSTRIAL PRODUCTION banks increased by $22.1 billion, or nearly 16 per DATA: 1976 Revision cent, during 1975, to a total of $162.7 billion, according to data released by the Board of Gover­ Historical industrial production data back to 1954 nors. This growth was principally accounted for for seasonally adjusted and not seasonally adjusted by the branches in the Bahama and Cayman Is­ monthly indexes of market and industry groups lands, 62 per cent, while those in the Far East (pages 2-6 and 8-12 of the G.12.3 statistical and the United Kingdom accounted for 13 and 12 release) may be obtained on a 9-track, 1600 BPI, per cent, respectively. At the end of 1975, 762 standard-label computer tape available at a cost branches were in operation in foreign countries and ,of $55.00 from Publications Services, Division of overseas territories, an increase of 30 branches Administrative Services, Board of Governors of during the year. the Federal Reserve System, Washington, D.C. These data are derived from reports of condition 20551. Remittances payable to the Board of Gover­ filed at the end of the year with the Comptroller nors must accompany all requests. of the Currency and the Federal Reserve System, A copy of seasonally adjusted data for major and differ in certain respects from other statistical market and industry groups and 2-digit SIC indus­ reports covering aspects of overseas branch opera­ tries for the same period may be obtained by tions. The assets and liabilities shown are payable writing to the Business Conditions Section, Divi­ Assets and liabilities of overseas branches of member banks, end of year, 1974 and 1975 In millions of dollars, unless otherwise indicated United Bahama Near U.S. Kingdom Continental and Latin Far East overseas Item and Europe Cayman America East and areas and Total Ireland Islands Africa trust territories 1974 1975 1974 1975 1974 1975 1974 1975 1974 1975 1974 1975 1974 1975 1974 1975 ASSETS Cash .......................... 31,333 33,969 10,983 10,922 6,081 10,737 729 809 2,673 3,387 157 378 114 195 52,070 60,398 Loans ......................... 21,277 19,123 8,465 9,513 14,802 23,616 4,107 4,957 10,040 12,859 598 1,404 2,134 2,334 61,423 73,804 Due from head offices and U.S. branches .. 2,007 1,193 129 90 650 195 33 152 444 376 229 46 138 134 3,630 2,186 Due from other overseas branches of own banks 8,118 11,434 3,153 1,903 275 803 474 1,128 850 1,557 146 264 144 329 13,160 17,419 Other .......................... 2,495 2,152 1,655 1,748 1,263 1,456 640 505 4,029 2,822 52 86 119 104 10,253 8,873 Total ................ 65,230 67,871 24,385 24,176 23,071 36,807 5,983 7,551 18,036 21,001 1,182 2,178 2,649 3,096 140,536 162,680 LIABILITIES Deposits: Demand ................. 3,703 4,388 1,862 2,133 140 310 1,533 1,129 1,710 1,883 402 627 631 707 9,981 11,177 Time ...................... 58,608 59,439 18,617 17,878 16,119 23,380 1,590 3,182 6,472 8,209 434 853 1,394 1,894 103,234 114,835 Due to head offices and U.S. branches 283 1,366 676 880 1,831 6,421 328 470 290 365 14 20 560 386 3,982 9,908 Due from other overseas branches of own banks ........ 419 544 1,316 1,257 4,343 6,059 1,991 2,307 4,420 6,583 264 617 5 45 12,758 17,412 Other .......................... 2,217 2,134 1,914 2,028 638 637 541 463 5,144 3,961 68 61 59 64 10,581 9,348 Total ................ 65,230 67,871 24,385 24,176 23,071 36,807 5,983 7,551 18,036 21,001 1,182 2,178 2,649 3,096 140,536 162,680 Number of branches 58 59 108 115 123 126 241 244 125 129 22 30 55 59 732 762 Note.—Data are from Board of Governors of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 813 sion of Research and Statistics, Board of Gover­ Janet Hart has been promoted from Deputy nors of the Federal Reserve System, Washington, Director to Director, Office of Saver and Consumer D.C. 20551. (Requests for no more than 10 indi­ Affairs, effective September 1, 1976. She replaces vidual series and/or subtotals may be similarly Frederic Solomon, who retired on August 31. addressed.) James M. Brundy has been appointed an As­ sistant Adviser in the Division of Research and Statistics. Mr. Brundy holds an A.B. from Har­ NEW BOARD PUBLICATION: vard University and a Ph.D. from the University B a n k in g a n d of California and has been attending Yale Law School. Mr. Brundy served at the Federal Reserve M o n e ta ry S ta tistics, 1 9 4 1 -1 9 7 0 Bank of San Francisco from 1967 to 1975. The Board has also announced the resignations Banking and Monetary Statistics, 1941-1970, is of Keith Engstrom, Director of the Division of now available for distribution. An earlier volume, Personnel, and Ralph Bryant, Director of the Di­ Banking and Monetary Statistics, 1914-1941, has vision of International Finance. been reprinted and is also available for distri­ bution. These two volumes were designed to assemble MORTGAGE DEBT in convenient form statistics previously published INFORMATION: Revision in the Board’s Annual Reports and in the Federal Reserve Bulletins. In combination they present The Board of Governors has revised the format a wealth of information covering a period of more of its presentation of data on mortgage debt out­ than 60 years. standing and has adjusted estimates of property- Included are most of the financial series for type totals to reflect recent benchmarks. Data in which current data are published in the Bulletin the table on page A-42 of this Bulletin reflect and some series that are no longer shown but that with greater precision ongoing developments in the are of historical interest. The statistics relate in mortgage markets and in the structure of the mort­ large part to the condition and operation of the gage finance industry. Federal Reserve Banks and member banks, but The revised historical data for the table on page there are also data oh the condition and operation A-42 will not be published in the Bulletin, but of all banks, including nonmember State banks, are available on request from the Mortgage and and on bank debits, bank income, bank suspen­ Consumer Finance Section, Division of Research sions, and bank holding companies. In addition, and Statistics, Board of Governors of the Federal there are statistics on nonbank financial institu­ Reserve System, Washington, D.C. 20551. tions, currency, money rates, securities markets, Treasury finance, consumer credit, gold, and in­ ternational financial developments. SYSTEM MEMBERSHIP: Copies of both volumes are available from Pub­ Admission of State Banks lications Services, Division of Administrative Services, Board of Governors of the Federal Re­ The following banks were admitted to membership serve System, Washington, D.C. 20551. The cost in the Federal Reserve System during the period per copy is $5.00 for the 1914-41 reprint and August 16, 1976, through September 15, 1976: $15.00 for the 1941-70 volume. Missouri Kansas City — Laurel Bank of Kansas City New Hampshire Seabrook ..............................Seabrook Bank and CHANGES IN BOARD STAFF Trust Company The Board of Governors has announced the fol­ Virginia lowing official staff promotion and appointment: Virginia Beach ...........Bank of Virginia Beach Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 Industrial Production Released for publication September 16 cent below the high of June 1974. The materials capacity utilization rate was 81.5 per cent in Au­ Industrial production increased by an estimated 0.5 gust. per cent in August to 131.4 per cent of the 1967 average. The July index has been revised upward Seasonally adjusted, ratio scale, 1967=100 and now shows a similar 0.5 per cent advance. The June increase was 0.3 per cent. Advances in both August and July were concentrated in durable materials, business equipment, and construction products. Output of consumer goods was unchanged in BUSINESS EQUIPMENT August. Among durable goods, a small rise in home goods about offset a slight decline in auto CONSUMER GOODS Energy production after allowance for the model change­ over period. Output of nondurable consumer goods CONSUMER GOODS: BUSINESS changed little. Production of business equipment Durable SUPPLIES advanced an estimated 0.6 per cent further in August following an upward revised increase of CONSTRUCTION SUPPLIES I I 0.7 in July. Output of construction products and 1969-70=100 Annual rate, millions of units business supplies also rose. 160 L AUTOS:* .Sales ^Stocks J 16 MANUFACTURING: Output of durable goods materials continued to 120 “ 12 100 Y I lA ~ 10 increase strongly in August; however, raw steel production has weakened in recent weeks. Recent Domestic assemblies' strong advances in durable materials production 1970 1972 1974 1976 1970 1972 1974 1976 have brought the level up to 27 per cent above F.R. indexes, seasonally adjusted. Latest figures: August. the March 1975 low, but it is still about 4 per *Auto sales and stocks include imports. Seasonally adjusted, 1967 = 100 Per cent changes from— 1976 Industrial production Month Year Ql to May June July p Aug.e ago ago Q2 Total .......................... 129.6 130.0 130.7 131.4 .5 8.6 1.8 Products, total ................... 128.9 129.3 129.6 130.1 .4 6.4 1.2 Final products ................ 127.3 127.5 127.7 127.9 .2 5.9 1.4 Consumer goods ....... 137.4 137.5 137.2 137.2 .0 7.6 1.7 Durable goods __ 143.2 144.3 142.2 142.1 -.1 10.0 3.8 Nondurable goods 135.1 134.9 135.3 135.3 .0 6.6 .8 Business equipment .. 134.6 135.2 136.2 137.0 .6 5.5 1.6 Intermediate products .. 135.0 135.8 136.6 137.7 .8 7.7 .4 Construction products 130.9 131.9 132.7 134.1 1.1 10.6 1.5 Materials .............................. 130.6 131.0 132.0 133.2 .9 11.9 2.7 ^Preliminary. Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al 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 Al Reserve requirements A52 Labor force, employment, and A8 Maximum interest rates; margin unemployment requirements A9 Open market account A53 Consumer prices A10 Federal Reserve Banks A53 Wholesale prices All Bank debits A54 National product and income A12 Money stock A56 Flow of funds A13 Bank reserves; bank credit A14 Commercial banks, by classes INTERNATIONAL STATISTICS A18 Weekly reporting banks A58 U.S. balance of payments A23 Business loans of banks A59 Foreign trade A24 Demand deposit ownership A59 U.S. reserve assets A25 Loan sales by banks A60 Gold reserves of central banks and A25 Open market paper governments A26 Interest rates A61 International capital transactions A29 Security markets of the United States A29 Stock market credit A74 Open market rates A30 Savings institutions A75 Central bank rates A75 Foreign exchange rates A82 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

tVES AND RELATED ITEMS □ SEPTEMBER 1976 BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED IT (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding U.S. Govt, securities1 Held Other Bought under Loans Float F.R. Total 3 out­ repur­ assets ii right2 chase agree­ ment 57,295 205 1,086 3.235 2,204 64,100 6, 61,310 378 321 3,570 1,032 66,708 7, 68,868 290 107 3,905 982 74,255 7, 70,790 304 1,049 3.479 1,138 76,851 8, 78,833 868 1,298 3,414 1,079 85,642 8, 85,202 1,477 703 2,734 3,129 93,967 9, 86,348 481 211 1,691 2,953 92,395 9, 87,531 1,660 396 1,823 3,060 95,277 9, 89,547 929 191 1,945 3,521 96,931 9, 89,560 1,374 61 2.480 3,481 97,817 10, 91,225 883 127 3,029 3,534 99,651 10, 91,524 1,474 79 2,684 3,505 100,172 10, 92,812 1,798 76 2,375 3,384 101,369 10, 93,503 1,377 58 2,204 3,412 101,336 10, 92,187 1,056 44 2.236 4,144 100,317 10, 94,049 1,918 121 2,071 4,051 102,951 10, 94,289 1,303 120 2,678 4,069 103,106 10, 96,210 895 123 2,721 4,375 104,799 10, 96,058 2,400 104 2,554 3,739 105,435 10, 93,903 2,089 242 1,962 3,795 102,717 10, 90,962 93 2,938 3,799 98,214 10, 93,520 284 49 2,508 4,251 101,056 10. 95,652 1,500 165 2,535 4,092 104,741 io; 97,496 3,798 165 2,327 4,150 108,925 10, 97,531 2,404 126 2,461 4,566 107,883 10, 95,804 176 3,448 4,460 104,239 io; 95,988 371 59 2,680 4,579 104,046 10, 95,794 558 159 2,471 4,087 103,424 10, 95,387 2,709 157 2,450 4,020 105,395 10, 94,828 122 2,513 4,239 102,015 10, 95,714 1,622 85 2,777 3,587 104,254 10, 96,996 4,316 67 2,412 3,388 107,882 10, 97,380 4,148 314 3,577 4,233 110,679 10 95,316 2,208 48 2,211 3,946 104,385 io; 96,660 4,289 64 2,076 3,665 107,562 io; 91,425 166 2,705 4,002 98,718 10, 90,054 351 2,856 3,819 97,492 10, 94,155 1,987 61 3,570 3,965 104,415 10, 96,803 656 837 3,025 4,155 106,174 10. 97,380 4,148 314 3,577 4,233 110,679 10i 96,985 1,401 71 3,038 4,538 106,593 10 96,809 1,013 3,862 4,400 106,427 10, 96,286 125 3,546 4,411 104,708 io; 95,247 2,878 676 2,965 3,941 106,157 io; 95,341 4,921 770 3,596 4,088 109,515 10, 92,795 599 3,367 4,209 101,270 10, 96,220 5,499 286 3,558 3,105 109,352 10, 97,607 3,180 70 2,967 4,041 108,414 10, issues held under repurchase agreements 3 Includes acceptances. For holdings of accepta Federal agency issues bought outright be- of-month dates, see p. A-10. 4 Beginning July 1973, this item includes certai securities loaned—fully guaranteed by U.S. nonmember banks and foreign-owned banking 7.R. Banks—and excludes (if any) securities member banks and redeposited in full with F.R ought back under matched sale-purchase Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 57,013 427 849 145 735 2,265 23,925 5,340 29,265 61,060 453 1,926 290 728 2,287 25,653 5,676 31,329 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 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. 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 84,002 527 8,811 280 716 3,231 26,168 7,646 33,953 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 25,711 7,903 33,774 89,423 469 7,404 262 945 3,310 25,933 8,064 34,146 89,548 456 7,797 275 979 3,326 26,043 7,988 34,181 Week ending— 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 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 25,801 7,633 33,594 88,358 511 11,788 251 699 3,535 26,629 8,077 34,866 89,231 510 10,415 257 1,025 3,232 26,153 8,220 34,521 89,971 476 7,121 255 772 3,212 25,370 8,400 33,919 89,582 443 5,622 282 945 3,286 26,842 7,429 34,420 89,077 456 6,218 250 1,043 3,427 25,915 8,155 34,219 89,226 443 7,623 288 1,023 3,398 26,351 8,190 34,691 89,759 439 5,416 224 934 3,136 25,088 8,324 33,562 89,897 436 6,067 352 909 3,253 26,334 7,950 34,435 89,484 432 10,135 240 943 3,394 26,248 7,554 33,953 End of month 88,878 480 11,972 349 847 3,564 27,460 8,077 35,697 88,948 454 8,739 295 953 3,525 24,371 8,190 32,712 ...............................................July 89,524 450 10,795 254 962 3,716 24,874 8,010 33,033 Wednesday 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 88,896 510 5,763 235 787 3,273 27,672 7,841 35,673 88,594 507 11,052 254 740 3,378 24,485 7,633 32,278 88,878 480 11,972 349 847 3,564 27,460 8,077 35,697 90,014 492 7,478 260 800 3,134 27,354 8,220 35,722 .......................................July 7 90,120 446 6,987 234 743 3,246 27,593 8,400 36,142 89,529 431 5,042 277 1,142 3,309 27,937 7,429 35,515 ..................................................21 89,297 432 6,320 227 1,134 3,523 28,189 8,155 36,493 89,662 427 5,856 264 1,063 3,145 32,062 8,190 40,402 90,181 431 4,666 199 921 3,136 24,726 8,324 33,200 89,961 419 9,323 222 815 3,390 28,218 7,950 36,319 89,513 419 10,167 219 1,873 3,512 25,707 7,554 33,412 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 over a 24-month period when a nonmember bank merges into an averages. Beginning Sept. 12, 1968, amount is based on close-of-business existing member bank, or when a nonmember bank joins the Federal figures for reserve period 2 weeks previous to report date. Reserve System. 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 □ SEPTEMBER 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 Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held1 quired sonal ings ings ings ings 1965—Dec......... 22,719 22,267 452 454 41 111 15 23 67 228 330 92 1967—De c 25,260 24,915 345 238 18 40 13 50 105 267 80 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 180 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 321 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 28 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 42 1972—De c 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 264 1973—De c 35,068 34,806 262 1,298 41 -23 74 43 28 28 761 133 435 1974—De c 36,941 36,602 339 703 32 132 80 5 18 39 323 163 282 1975—Au g 34,482 34,265 217 211 38 -18 14 5 1 98 51 132 145 Sept........ 34,646 34,447 199 396 61 17 68 27 2 23 141 132 185 Oct.......... 34,567 34,411 156 191 65 42 31 -23 3 32 134 128 Nov........ 34,571 34,281 290 61 28 50 7 34 42 5 164 49 Dec......... 34,989 34,727 262 127 13 64 63 -18 89 26 127 38 1976—Ja n 35,575 35,366 209 79 9 52 9 -18 3 13 172 40 Feb......... 33,953 33,939 14 76 11 -147 20 -14 -2 16 177 39 Mar........ 33,967 33,531 436 58 8 177 21 36 108 14 115 21 Apr.......... 34,063 33,974 89 44 11 2 -4 -47 15 138 21 May........ 34,228 33.846 382 121 11 13 -69 297 33 141 57 June.... 33,774 33,657 117 120 20 22 91 -125 22 129 65 July......... 34,146 34,076 70 123 24 -41 -18 -27 11 156 62 Aug.P. .. 34,181 33.846 335 104 28 -7 21 -82 20 117 50 Week ending— 1975—Aug. 6. 34,553 34,354 199 180 13 10 31 14 145 166 13. 34,163 34,147 16 179 -46 47 -22 -45 18 129 108 20. 34,629 34,418 211 204 -4 19 73 77 123 127 27. 34,470 34,174 296 272 127 15 -7 48 87 128 170 1976—Feb. 4. 35,069 34,652 417 57 94 -14 139 16 198 41 11. 33,779 33,729 50 51 -83 20 -31 14 144 37 18. 34,540 34,040 500 56 180 -7 95 10 232 42 25. 33,656 33.773 -117 148 -157 82 -5 -43 24 88 42 Mar. 3. 34,088 33,678 410 85 98 11 122 14 179 29 10. 33,379 33,276 103 48 53 -18 -67 3 135 19 17. 33,710 33,509 201 40 26 21 13 22 141 18 24. 33.562 33,451 111 78 -27 -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 32 151 14 21. 34,447 34,317 130 40 10 -4 -22 41 2 115 20 28. 34,384 34,272 112 54 11 16 27 -43 26 112 28 May 5. 35,296 34,855 441 30 11 65 3 6 216 154 27 12. 33,720 33,753 -33 55 9 -43 34 3 -112 2 119 16 19. 34,136 33,891 245 122 11 40 40 -14 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 -15 244 79 164 149 9. 33,127 33,197 -70 93 14 -42 36 -13 -153 5 138 35 16. 33,971 33,400 571 49 16 118 68 210 11 175 38 23. 33,594 33.774 -180 165 21 -106 -30 -134 45 90 58 30. 34,866 34,341 525 165 28 95 37 213 24 180 127 July 7. 34,521 33,959 562 126 26 317 21 50 22 1 173 104 14. 33,919 33,890 29 176 23 -93 78 -28 57 24 3 126 38 21 . 34,420 34,192 228 59 23 88 19 -20 10 141 49 28. 34,219 34,187 32 159 27 -129 63 -6 52 33 115 63 Aug. 4. 34,691 34,255 436 157 22 86 86 53 113 16 184 55 11. 33.562 33,598 -36 122 26 -74 41 -38 24 -53 18 129 39 18p 34,435 34,063 372 85 30 57 23 2 -120 37 183 46 25* 33,953 33,705 248 67 30 -182 -103 -123 16 99 51 1 Beginning with week ending Nov. 15, 1972, includes $450 million of existing member bank, or when a nonmember bank joins the Federal reserve deficiencies on which F.R. Banks are allowed to waive penalties Reserve System. for a transition period in connection with bank adaptation to Regulation J 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies for reserve-requirement purposes has been based on size of bank (net included are (beginning with first statement week of quarter): Ql, $279 demand deposits of more than $400 million), as described in the Bulletin million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning for July 1972, p. 626. Categories shown here as “Large” and “All other” 1974, Ql, $67 million; Q2, $58 million. Transition period ended after parallel the previous “Reserve city” and “Country” categories, respectively second quarter, 1974. For weeks for which figures are preliminary, figures (hence the series are continuous over time). by class of bank do not add to the total because adjusted data by class are not available. Note.—Monthly and weekly data are averages of daily figures within Beginning with week ending Nov. 19, 1975, adjusted to include waivers the month or week, respectively. of penalties for reserve deficiencies in accordance with Board policy, Borrowings at F. R. Banks: Based on closing figures. effective Nov. 19, 1975, of permitting transitional relief on a graduated Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­ basis over a 24-month period when a nonmember bank merges into an ing by F.R. Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ MONEY MARKET BANKS A5 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net surplus, or Less- deficit (—) Gross transactions Net transactions Reporting banks and Total Bor­ week ending— Excess Net Per cent two-way Pur­ Loans row­ Net re­ Bor- inter­ of Pur­ trans­ chases Sales to ings loans serves 1 rowings bank Amount avg. chases Sales actions2 of net of net dealers3 from at F.R. Federal required buying selling dealers4 Banks funds reserves banks banks trans. Total—46 banks 1976—July 7........... 552 21 13,296 -12,766 85.5 20,637 7,341 4,668 15,969 2,673 2,448 997 1,451 14........... 18 135 16,941 -17,059 112.8 22,289 5,348 4,043 18,247 1,305 3,260 606 2,654 21........... 60 9 13,692 -13,641 90.0 20,241 6,549 4,472 15,769 2,077 2,549 935 1,614 28........... 3 66 12,617 -12,680 84.8 18,938 6,321 4,227 14,711 2,094 2,259 1,327 933 Aug. 4........... 178 95 12,589 -12,506 82.3 19,498 6,909 4,615 14,883 2,294 2,202 1,357 845 11........... -58 75 16,357 -16,490 111 .4 22,636 6,279 4,326 18,310 1,952 3,337 1,168 2,169 18........... 55 14 15,043 -15,002 99.0 21,530 6,487 4,408 17,122 2,079 2,734 1,392 1,342 25........... 145 13,555 -13,410 91.8 20,425 6,869 4,362 16,063 2,507 2,319 1,321 998 8 in New York City 1976—July 7........... 430 5,414 -5,006 84.0 6,105 691 691 5,414 1,684 357 1,327 14........... 1 5,881 -5,958 98.4 6,172 291 291 5,881 1,884 272 1,612 21........... 68 3,985 -3,917 65.5 4,873 888 695 4,178 193 1,665 378 1,287 28........... -53 57 3,695 -3,805 64.3 4,513 819 819 3,695 1,474 207 1,268 Aug. 4........... 3 3,514 -3,598 59.0 4,712 ,198 1,195 3,518 3 1,290 309 981 11........... -45 5,083 -5,170 87.5 5,886 803 803 5,083 1,910 301 1,609 18........... 56 4,630 -4,575 75.0 5,487 857 856 4,631 1,783 228 1,556 25........... 41 4,510 -4,469 76.8 5,216 706 706 4,510 1,580 322 1,258 38 outside New York City 1976—July 7........... 122 7,882 -7,760 86.6 14,532 6,650 3,977 10,555 2,673 764 640 124 14........... 17 11,060 -11,101 122.4 16,117 5,057 3,752 12,366 1,305 1,376 335 1,041 21........... -8 9,706 -9,724 106.0 15,368 5,662 3,777 11,591 1,884 883 557 327 28........... 56 8,922 -8,875 98.2 14,425 5,503 3,409 11,016 2,094 785 1,120 —335 Aug. 4........... 176 9,075 -8,908 97.9 14,786 5,711 3,420 11,365 2,291 912 1,048 -136 11........... -13 11,274 -11,321 127.3 16,750 5,475 3,523 13,226 1,952 1,427 867 561 18........... -1 10,413 -10,428 115.3 16,043 5,630 3,552 12,491 2,079 951 1,165 -214 25........... 104 9,045 -8,941 101.7 15,209 6,164 3,656 11,553 2,507 739 999 -260 5 in City of Chicago 1976—July 7........... 75 4,711 -4,636 297.1 5,557 845 825 4,732 21 272 233 40 14........... -17 57 5,935 -6,008 370.3 6,469 535 534 5,935 368 33 335 21........... 20 5,789 -5,769 350.0 6,541 753 753 5,789 355 227 128 28........... 8 5,411 -5,403 353.0 6,038 627 627 5,411 304 501 -197 Aug. 4........... 65 5,430 -5,364 355.0 6,037 607 607 5,430 345 450 -105 11........... -13 6,248 -6,284 417.0 6,808 560 560 6,248 459 413 46 18........... 11 5,661 -5,652 361.0 6,291 630 615 5,676 306 444 -138 25........... 31 5,267 -5,237 350.3 5,902 635 606 5,296 244 525 -281 33 others 1976—July 7........... 48 3,171 -3,123 42.2 8,976 5,805 3,152 5,823 2,652 492 408 84 14........... 33 5,126 -5,092 68.4 9,648 4,522 3,217 6,431 1,305 1,008 301 707 21........... -28 3,918 -3,955 52.6 8,827 4,909 3,025 5,802 1,884 529 330 199 28........... 48 3,511 -3,472 46.3 8,387 4,875 2,781 5,605 2,094 481 619 -138 Aug. 4........... 111 3,645 -3,544 46.7 8,749 5,104 2,813 5,936 2,291 567 597 -31 11........... -1 5,026 -5,037 68.2 9,942 4,915 2,963 6,979 1,952 968 453 515 18........... -12 4,752 -4,776 63.8 9,752 5,000 2,937 6,815 2,063 645 720 -75 25........... 74 3,778 -3,705 50.8 9,307 5,529 3,050 6,257 2,478 495 473 21 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 a SEPTEMBER 1976 CURRENT RATES (Per cent per annum) Loans to member banks— Under Sec. 10(b) 2 Loans to all others under Under Secs. 13 and 13a1 last par. Sec. 134 Federal Reserve Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 8/31/76 date rate 8/31/76 date rate 8/31/76 date 3 rate 8/31/76 date rate Boston..................... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 New York............... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Philadelphia........... 5*4 1/19/76 6 6 J/.J9/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Cleveland................ 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Richmond............... 5V4 1/19/76 6 6 1/19/76 6V4 6*4 1/19/76 7 8*4 1/19/76 9 Atlanta.................... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Chicago................... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 St. Louis................. 5*4 1/23/76 6 6 1/23/76 6*4 6*4 1/23/76 7 8*4 1/23/76 9 Minneapolis........... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Kansas City........... 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 Dallas...................... 5*4 1/19/76 6 6 1/19/76 6 V4 6*4 1/19/76 7 8*4 1/19/76 9 San Francisco........ 5*4 1/19/76 6 6 1/19/76 6*4 6*4 1/19/76 7 8*4 1/19/76 9 1 Discounts of eligible paper and advances secured by such paper or by 3 Applicable to special advances described in Section 201.2(e)(2) of U.S. Govt, obligations or any other obligations eligible for F.R. Bank Regulation A. purchase. 4 Advances to individuals, partnerships, or corporations other than 2 Advances secured to the satisfaction of the F.R. Bank. Advances member banks secured by direct obligations of, or obligations fully secured by mortgages on 1- to 4-family residential property are made at guaranteed as to principal and interest by, the U.S. Govt, or any the Section 13 rate. agency thereof. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1955 2% 2*4 1964—Nov. 24, 3*4-4 4 1971—Nov. 11..................... 434-5 a 30, 4 4 19..................... M4% 1956—Apr. 13............. 2*4-3 Dec. 13..................... 20............. 2*4-3 1965—Dec. 6, 4 -4*4 4*4 1 7 Aug. 24............. 2%-3 3 13. 4*4 4*4 24..................... 4*4 31........... 3 1967—Apr. 7, 4 -4*4 4 1973—Jan. 15..................... 5 1957—Aug. 9............. 3 -3*4 3 14. 4 4 Feb. 26..................... 5 -5*4 Nov. 2 1 5. 3 .. .......... 3 3 - * 3 4 % 3 3*4 Nov. 2 2 7 0. . 4 4 - * 4 4 *4 4 4 * * 4 4 A M p a r r . . 2 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5* 5 4 * - 4 5% Dec. 2............. 3 3 1968—Mar. 2 1 2 5 . . 4* 5 4-5 4 5 *4 May 1 4 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5* 5 4 % -6 1958—J M a a n r . . 2 2 7 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 21 % % /4 - - - 3 3 3 1 1 38 8 A Au p g r. . 2 1 1 6 9 6 . . . 5 5 * 5 4 * - - 5 5 4 * * 4 4 5S VBi June 1 1 1 1. 8 5 .. .................. 6 6 6* - 4 6*4 A M p a r y . 2 1 1 9 1 8 . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 l% * 2 4 1 - * % - 2 4 2 % % 1 1 % % Dec. 2 3 1 0 0 8 . . . 5 * 5 5 4 * * -5 4 4 *4 5 5* * 4 4 A Ju u l g y . 2 1 2 4 . . 3 . .. . . .. . . .. . . .. .. .. . . . . .. .. .. .. . . .. . . .. . 7 7 7* -7 4 *4 Aug. 15............. l%-2 1% 1969—Apr. 4. 5*4-6 6 1974—Apr. 25..................... 7*4-8 Sept. 12............. 1 */4-2 2 8. 6 6 30.................... 23............. 2 2 Dec. 9..................... 7*4-8 Oct. 24............. 2 -2 Vi 2 1970—Nov. 11. 5V4-6 6 1 6 m Nov. 7............. 2*4 2*4 13. 5%-6 5y4 16. 5% 5% 1975—Jan. 6..................... 7*4-7% 1959—Mar. 6............. 2^-3 3 Dec. 1. 5*4-5% 5V4 10..................... 7*4-7% 16............. 3 3 4. 5*4-5% 5*4 2 4 7% May 29............. 3 -3 Vi 3*4 11. 5*4 5*4 Feb. 5..................... 6%-7*4 June 12............. 3*4 3*4 7..................... Sept. 11............. 3V4-4 4 1971—Jan. 8. 5 *4-5 *4 5*4 Mar. 10.................... 6%-1% 18............. 4 4 15. 5*4 5*4 14..................... 1960— S J A u e u p n g t e . . 1 1 1 9 3 0 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 * * 3 3 4 4 - * - - 3 4 4 4 * 4 4 3 3 3 * * 4 J F u e l b y . 2 2 1 1 1 1 2 9 9 6 9 3 . . , , . , 4 4 5 5 % % 4 5 - - - - % 5 5 5 5 1 * / 4 4 5 5 5 5 4 5* % 4 1976—J M an ay . 2 2 1 1 3 3 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 64% 1963—July 17............. 3 -3*4 3*4 23 5 5 In effect, Aug. 31, 1976.... 5*4 26............. 3*4 3*4 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

SEPTEMBER 1976 □ RESERVE REQUIREMENTS A7 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Net demand 2 Time 3 (all classes of banks) Effective date i Reserve city Other Other time Savings 0-5 Over 5 0-5 Over 5 0-5 Over 5 In effect Jan. 1, 1963............... 16% 12 4 1966—July 14,21........... 4 4 5 Sept. 8,15........... 6 1967—Mar. 2................. 3% 3% Mar. 16............... 3 3 1968—Jan. 11,18........... 16% 17 12 12% 1969—Apr. 17................ 17 17% 12% 13 1970—Oct. 1................... 5 Beginning Nov. 9, 1972 Net demand2,4 Time3 Other time Effective date 0-5, maturing in— Over 5 5, maturing in— 0-2 2-10 10-100 100- Over Savings 400 400 180 180 30-179 days to 4 years 30-179 days to 4 years days 4 years or more days 4 years or more 1972—Nov. 9....................... 8 10 12 6 16% 17% 73 73 75 Nov. 16..................... 13 1973 July 19....................... 10% 12% 13% 18 1974 Dec. 12..................... 17% 6 3 1975—Feb. 13..................... m 10 12 13 16% Oct. 30...................... t 8 1 3 8 1 1976 Jan. 8......................... 3 *2% 8 2% m 10 12 I1n3 effect A1u6g%ust 31, 13976.. 3 82% 8 1 6 8 2% 8 1 Present legal limits: Minimum Maximum Net demand deposits, reserve city banks........... 10 22 Net demand deposits, other banks..................... 7 14 Time deposits.......................................................... 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16, 1969, member banks have been required under reserve cities and are permitted to maintain reserves at ratios set for banks Regulation M to maintain reserves against foreign branch deposits not in reserve cities. For details, see Regulation D and appropriate sup­ computed on the basis of net balances due from domestic offices to their plements and amendments. foreign branches and against foreign branch loans to U.S. residents. 5 A marginal reserve requirement was in effect between June 21, 1973, Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident and Dec. 11, 1974, against increases in the aggregate of the following types have been excluded from computations, as have total loans of a bank to of obligations: (a) outstanding time deposits of $100,000 or more, (b) U.S. residents if not exceeding $1 million. Regulation D imposes a similar outstanding funds obtained by the bank through issuance by a bank’s reserve requirement on borrowings from foreign banks by domestic offices affiliate of obligations subject to existing reserve requirements on time of a member bank. The reserve percentage applicable to each of these deposits, and (c) beginning July 12, 1973, funds from sales of finance bills. classifications is 4 per cent. The requirement was 10 per cent originally, The requirement applied to balances above a specified base, but was not was increased to 20 per cent on Jan. 7, 1971, was reduced to 8 per cent applicable to banks having obligations of these types aggregating less effective June 21, 1973, and was reduced to the current 4 per cent effective than $10 million. For details, including percentages and maturity classifi­ May 22, 1975. Initially certain base amounts were exempted in the com­ cations, see “Announcements” in Bulletins for May, July, Sept., and putation of the requirements, but effective Mar. 14, 1974, the last of these Dec. 1973 and Sept. and Nov. 1974. reserve-free bases were eliminated. For details, see Regulations D and M. 6 The 16 Vi per cent requirement applied for one week, only to former 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve city banks. For other banks, the 13 per cent requirement was club accounts became subject to same requirements as savings deposits. continued in this deposit interval. Beginning Nov. 10, 1975, profitmaking businesses may maintain savings 7 See columns above for earliest effective date of this rate. deposits of $150,000 or less at member banks. For details of 1975 action, 8 The average of reserves on savings and other time deposits must be see Regulations D and Q, and also Bulletins for Oct. 1975, p. 708, and at least 3 per cent, the minimum specified by law. For details, see Regu­ Nov. 1975, 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 □ SEPTEMBER 1976 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type and size July 20, Sept. 26, Apr. 19, Jan. 21, Type and size July 1, Nov. 1, Nov. 27, Dec. 23, of deposit 1966 1966 1968 1970 of deposit 1973 1973 1974 1974 Savings deposits............... 4% Savings deposits......................... Other time deposits:1 Other time deposits (multiple- Multiple maturity:2 and single-maturity): *, 2 30-89 days........... 4 4^ Less than $100,000: 90 days to 1 year. 5 30-89 days.......................... 5 5 5 5 1-2 years............. 5 5% 90 days to 1 year............... 5 Vi 5 Vi 5 Vi 2 years or more... 5% 1-2 Vi years......................... 6 6 6 6A Single-maturity: 2Vi years or more............. 6Vi 6 % 6Vi 6 Vi Less than $100,000: Minimum denomination 30 days to 1 year. It of $1,000:4 2 1 - y 2 e a y rs e a o r r s . m .... o ... r . e ... . . . 5Vi 4 6 - y 6 e a y r e s a r o s r . . m .... o ... r .. e .. . . . . . . . . . . . . . . . . . . . . . . . . . (5) 7% 7% 7 7 % Vi $100,000 or more: Governmental units.......... (6) (6) 7 Vi m 30-59 days........... ' 5 Vi (3) $100,000 or more................. (3) (3) (3) (3) 60-89 days............ 5Va (3) 90-179 days......... 5% 5 Vi 6 (3) 180 days to 1 year <3) 1 year or more... 1} 614 (3) 1 For exceptions with respect to certain foreign time deposits, see 5 per cent of its total time and savings deposits. Sales in excess of that Bulletin for Feb. 1968, p. 167. amount were subject to the 6 Vi per cent ceiling that applies to time de­ 2 Multiple-maturity time deposits include deposits that are automati­ posits maturing in 2Vi years or more. cally renewable at maturity without action by the depositor and deposits Effective Nov. 1, 1973, a ceiling rate of 7lA 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 30-59 days 61/4 per cent! June 24, 1970 tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974, 60-89 days 6Vi per cent/ governmental units were permitted to hold savings deposits and could 90-179 days 6% per cent] receive interest rates on time deposits with denominations under $100,000 180 days to 1 year 7 per cent [ May 16, 1973 irrespective of maturity, as high as the maximum rate permitted on such 1 year or more 7Vi per cent) deposits at any Federally insured depositary institution. Rates on multiple-maturity time deposits in denominations of $100,000 Note.—Maximum rates that may be paid by member banks are estab­ or more were suspended July 16, 1973, when the distinction between lished by the Board of Governors under provisions of Regulation Q; single- and multiple-maturing deposits was eliminated. however, a member bank may not pay a rate in excess of the maximum 4 Effective Dec. 4, 1975, the $1,000 minimum denomination does not rate payable by State banks or trust companies on like deposits under apply to time deposits representing funds contributed to an Individual the laws of the State in which the member bank is located. Beginning Retirement Account established pursuant to 26 U.S.C. (I.R.C. 1954) §408. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 5 Between July 1 and Oct. 31, 1973, there was no ceiling for certificates commercial banks, as established by the FDIC, have been the same as maturing in 4 years or more with minimum denominations of $1,000. those in effect for member banks. The amount of such certificates that a bank could issue was limited to For previous changes, see earlier issues of the Bulletin. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4................... 40 50 1945—Feb. 5 July 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. 16.................... 50 50 1951—Jan. 17 1953—Feb. 19.................... 75 75 1953—Feb. 20 1955—Jan. 3............... 50 50 1955—Jan. 4 Apr. 22.................... 60 60 Apr. 23 1958—Jan. 15................. 70 70 1958—Jan. 16 Aug. 50 50 Aug. 5 Oct. 15.................... 70 70 Oct. 16 1960—July 27.................... 90 90 1960—July 28 1962—July 9.................... 70 70 1962—July 10 1963—Nov. 5.................... 50 50 1963—Nov. 6 1968—Mar. 70 70 1968—Mar. 11 June 7................... 70 50 70 June 8 1970—May 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22.................... 55 50 55 1972—Nov. 24 1974—Jan. 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

SEPTEMBER 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—July.. 1,505 800 Aug.. 312 282 400 2,002 -2,144 150 1,299 64 -1,444 47 300 Sept.. 2,118 200 278 562 -278 137 124 Oct... 1,263 *766 400 48 -48 Nov.. 983 652 919 -265 267 -135 155 300 244 100 Dec.. 1,984 200 28 118 -28 78 71 1976—Jan... 243 1,239 600 110 100 73 Feb.. 1,664 389 1,153 177 174 63 968 59 200 Mar.. 1,069 511 600 349 185 107 -349 63 24 Apr.. 2,869 1,355 1,000 72 249 70 -72 51 38 May. 1,335 1,224 403 2,602 -3,105 *4i8 ‘*85 June. 2,719 524 350 83 -449 617 449 195 96 July.. 279 1,413 875 59 -59 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—July. 1,505 800 15,532 15,139 5,977 6,146 -2,866 2 -61 3 -2,926 Aug.. 2,574 282 2,389 14,234 13,730 8,146 6,881 663 353 40 90 -1 156 1,222 Sept.. 2,940 200 19,931 19,835 16,664 14,857 4,451 394 1 203 14 94 5,155 Oct.. 1,263 “ ‘766 400 15,886 16,113 13,699 13,838 186 284 -124 49 50 445 Nov. 1,693 652 919 14,442 15,207 14,342 17,275 -2,047 -169 -21 -300 -2,537 Dec.. 2,281 200 10,559 10,058 8,464 7,247 2,797 118 15 385 3,315 1976—Jan.. 563 1,239 600 11,407 11,503 18,135 14,919 2,037 239 187 5 98 2,567 Feb.. 2,003 200 7,551 7,957 17,753 20,943 -982 297 -236 -70 -109 -1,101 Mar. , 1,380 618 600 12,697 12,082 16,000 14,783 763 217 -138 -31 812 Apr.. 3,233 1,425 1,000 15,138 14,899 17,456 15,963 2,061 -155 -50 162 2,019 May., 1,335 1,224 403 12,417 12,355 20,355 21,203 -1,202 240 20 22 -51 -69 -1,080 June., 3,709 524 350 20,973 21.205 14,409 13,643 3,834 -22 123 -78 229 4,086 July. 279 1,413 875 10,522 10,468 12,947 14,657 -3,773 -231 -31 -339 -4,375 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 □ SEPTEMBER 1976 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1976 1976 1975 Aug. 25 Aug. 18 Aug. 11 Aug. 4 July 28 Aug. 31 July 31 Aug. 31 Assets Gold certificate account................................... 11,598 11,598 11,598 11,598 11,598 11,598 11,598 11,598 Special Drawing Rights certificate account. 700 700 700 700 700 700 700 500 Cash........................................................... 364 360 349 351 347 365 361 363 Loans: Member bank borrowings............... 70 286 599 770 676 64 48 231 Other..................................................... Acceptances: Bought outright.................................. 274 285 300 320 333 262 330 684 Held under repurchase agreements. 275 399 479 117 546 326 156 Federal agency obligations: Bought outright................................... 6,778 6,805 6,805 6,805 6,805 6,778 6,805 5,396 Held under repurchase agreements. 107 111 166 140 141 46 90 U.S. Govt, securities: Bought outright: Bills.............................. 38,503 37,569 34,144 36,690 36,596 37,556 36,665 33,600 Certificates—Special. Other.. Notes........................... 45,915 45,499 45,749 45,749 45,749 45,915 45,749 42,812 Bonds......................... 6,411 6,347 6,097 6,097 6,097 6,411 6,097 4,869 Total bought outright1..................... 90,829 89,415 85,990 88,536 88,442 89,882 88,511 81,281 Held under repurchase agreements. 3,073 5,388 4,755 2,738 4,148 2,162 1,265 Total U.S. Govt, securities. 93,902 94,803 85,990 93,291 91,180 94,030 90,673 82,546 Total loans and securities.................... 101,406 102,689 93,694 101,831 99,251 101,821 98,228 89,103 Cash items.in process of collection... *7,856 *9,053 8,270 9,139 8,000 *7,668 6,172 5,779 Bank premises......................................... 350 350 349 347 348 350 347 305 Operating equipment.............................. 22 22 20 18 18 22 18 2 Other assets: Denominated in foreign currencies. 645 645 669 664 663 645 664 26 All other............................................... 3,024 2,088 3,171 3,059 2,912 2,648 2,917 2,679 Total assets. *125,965 *127,505 118,820 127,707 123,837 *125,817 121,005 110,355 Liabilities F.R. notes............................................... 79,598 80,042 80,269 79,773 79,409 79,624 79,161 72,787 Deposits: Member bank reserves.................... *25,707 *28,218 24,726 32,062 28,189 *24,874 24,371 26,484 U.S. Treasury—General account. 10,167 9,323 4,666 5,856 6,320 10,795 8,739 2,349 Foreign............................................... 219 222 199 264 227 254 295 342 Other: All other 2.................................... 1,873 815 921 1,063 1,134 962 953 776 Total deposits. *37,966 *38,578 30,512 39,245 35,870 *36,885 34,358 29,951 Deferred availability cash items............ 4,889 5,495 4,903 5,543 5,035 5,592 3,961 4,306 Other liabilities and accrued dividends. 1,177 1,174 1,033 1,163 1,149 1,276 1,103 1,037 Total liabilities........................................... *123,630 *125,289 116,717 125,724 121,463 *123,377 118,583 108,081 Capital accounts Capital paid in.............................................................. 964 964 963 959 960 965 959 914 Surplus............................................................................. 929 929 929 929 929 929 929 897 Other capital accounts................................................. 442 323 211 95 485 546 534 463 Total liabilities and capital accounts........................ *125,965 *127,505 118,820 127,707 123,837 *125,817 121,005 110,355 Marketable U.S. Govt, securities held in custody for foreign and international accounts......................... 47,961 47,904 46,867 46,714 46,408 48,294 46,648 43,204 Federal Reserve Notes-*-Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank).......... 85,290 85,265 85,179 85,029 84,984 85,209 85,165 78,553 Collateral held against notes outstanding: Gold certificate account................................... 11,596 11,596 11,596 11,596 11,596 11,597 11,596 11,596 Special Drawing Rights certificate account. 394 394 394 394 394 394 394 302 Acceptances......................................................... U.S. Govt, securities........................................ 74,930 74,930 74,730 74,730 74,630 74,930 74,630 69,305 Total collateral. 86,920 86,920 86,720 86,720 86,620 86,921 86,620 81,203 1 See note 2 on p. A-2. 2 See note 4 on p. A-2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 1976 1976 1975 Aug. 25 Aug. 18 Aug. 11 Aug. 4 July 28 Aug. 31 July 31 Aug. 31 Loans—Total........... 70 286 599 769 677 64 46 231 Within 15 days... 58 274 581 755 677 46 38 196 16-90 days............. 12 12 18 14 18 35 91 days to 1 year.. Acceptances—Total. 549 684 300 799 450 808 656 840 Within 15 days... 314 443 49 536 164 585 386 268 16-90 days............. 183 189 194 197 216 174 206 381 91 days to 1 year. 52 52 57 66 70 49 64 191 U.S. Govt, securities—Total. 93,902 94,803 85,990 93,291 91,180 94,030 90,673 82,546 Within 15 days1.................. 6,943 9,126 5,349 10,854 6,133 5,643 4,405 3,826 16-90 days........................... 17,280 17,062 14,102 16,092 18,439 18,713 19,837 16,758 91 days to 1 year............... 26,245 25,620 25,127 24,933 25,137 26,300 24,960 22,805 1-5 years.............................. 28,754 28,453 28,472 28,472 28,531 28,694 28,531 29,858 5-10 years............................ 9,709 9,636 8,283 8,283 8,283 9,709 8,283 5,756 Over 10 years...................... 4,971 4,906 4,657 4,657 4,657 4,971 4,657 3,543 Federal agency obligations—Total. 6,885 6,916 6,805 6,971 6,945 6,919 6,851 5,486 Within 15 days1.............................. 159 265 101 166 182 275 88 230 16-90 days........................................ 176 175 228 329 309 208 309 113 91 days to 1 year............................ 1,089 953 953 953 919 996 919 579 1-5 years ........................................... 3,266 3,362 3,362 3,362 3,374 3,245 3,374 2,700 5-10 years......................................... 1,502 1,468 1,468 1,468 1,468 1,502 1,468 1,311 Over 10 years................................... 693 693 693 693 693 693 693 553 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—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 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.................................. 25,528.4 12,212.0 5,324.6 13,316.4 7,991.8 140.9 375.4 128.1 89.6 74.6 Mar................................. 26,474.4 12,629.6 5,560.9 13,844.8 8,283.9 144.6 377.5 131.4 92.5 77.2 Apr.................................. 25,792.3 12,482.8 5,302.4 13,310.0 8,007.7 140.3 374.9 124.6 88.4 74.2 May................................ 25,490.9 12,179.0 5,327.1 13,311.9 7,984.7 139.3 380.2 126.9 88.2 73.3 June................................ *•26,623.4 12,844.3 *•5,561.2 ’•13,779.2 r8,218.0 *•145.0 400.8 *•131.9 *•90.9 *•75.1 July................................. 27,097.9 13,354.2 5,501.4 13,743.7 8,242.3 145.9 405.0 128.7 89.9 74.9 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 □ SEPTEMBER 1976 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Mi Mi Mi Mi Ms Mi M2 Mi Mi Ms Composition of measures is described inthe Note below. 1973—Dec. 270.5 571.4 919.5 634.9 982.9 278.3 576.5 921.8 640.5 985.8 1974—Dec. 283.1 612.4 981.6 702.2 1,071.4 291.3 617.5 983.8 708.0 1,074.3 1975—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 Nov. 295.6 662.1 1,086.5 743.9 1,168.3 297.4 660.2 1,080.6 743.0 1,163.5 Dec. 294.8 664.3 1,092.9 747.2 1,175.8 303.2 669.3 1,094.6 752.8 1,178.1 1976—Jan.. 295.1 670.2 1,103.7 749.4 1,182.9 301.0 675.3 1,107.1 753.7 1,185.6 Feb. 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 rl ,127.4 756.5 1,200.5 295.2 683.3 1,129.0 755.1 1,200.8 Apr. 301.7 691.9 *■1,141.2 763.4 *•1,212.7 303.3 696.7 *•1,149.4 766.1 1,218.7 May 303.3 697.2 *•1,151.5 765.4 *•1,219.7 298.4 695.6 *•1,152.4 763.0 *•1,219.7 June *•303.1 *•700.3 *•1,159.2 770.9 *■1,229.8 *•302.4 *■701.7 >•1,164.1 *770.8 *•1,233.2 July. 304.8 707.6 1,171.9 777.2 1,241.5 305.1 708.0 1,175.8 776.9 1,244.7 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 Mu M2 plus large negotiable CD’s. banks other than domestic interbank and U.S. Govt., less cash items in Ms: 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 Mi, M2, M3, Mi, and Ms, 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 Mi\ 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 Mz: M2 plus the average of the beginning and end-of-month deposits release. Back data are available from the Banking Section, Division of Research and Statistics. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks Time and savings Non­ Demand deposits Time and savings Non­ U.S. Period deposits bank deposits bank Govt. Cur­ De­ thrift Cur­ thrift de­ ren­ mand insti­ ren­ insti­ pos­ cy de­ tu­ cy Do­ tu­ its3 pos­ tions2 mes­ tions2 its CD’s1 Other Total Mem­ tic Total CD’s1 Other Total ber nonmem­ ber 1973—Dec................. 61.5 209.0 63.5 300.9 364.4 348.0 62.7 156.5 56.3 215.7 64.0 298.2 362.2 345.3 6.3 1974—Dec................. 67.8 215.3 89.8 329.3 419.1 369.2 69.0 159.7 58.5 222.2 90.5 326.3 416.7 366.3 4.9 1975—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 *•73.1 385.4 458.5 444.0 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 *•461.7 *■449.3 76.3 161.7 62.3 227.0 69.4 393.4 462.8 *•452.6 3.8 May.............. 77.4 226.0 68.2 393.9 *•462.1 *•454.3 77.2 157.1 61.0 221.2 67.4 397.2 464.6 *•456.7 3.7 June............... 77.6 *•225.5 70.6 *■397.3 467.9 *•458.9 77.8 *•159.1 62.3 *•224.6 69.1 399.3 468.4 *•462.4 4.7 July................. 78.2 226.6 69.6 402.8 472.4 464.3 78.8 160.1 62.7 226.3 68.9 403.0 471.8 467.8 3.4 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

SEPTEMBER 1976 □ BANK RESERVES; BANK CREDIT A13 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non­ Total bor­ Re­ Avail­ Demand Demand rowed quired 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—July... 34.98 34.68 34.79 32.89 498.3 330.8 164.9 2.6 497.2 330.2 164.5 2.5 505.1 504.0 Aug__ 34.88 34.67 34.69 32.77 496.3 328.4 165.1 2.8 494.8 330.5 162.3 2.0 503.3 501.8 Sept.... 34.99 34.59 34.80 32.77 498.4 329.8 165.6 3.0 499.1 332.2 164.0 2.9 505.5 506.1 Oct.1.. 34.79 34.60 34.58 32.61 500.1 333.1 164.0 3.0 500.4 334.7 163.3 2.5 508.0 508.3 Nov.... 34.73 34.67 34.44 32.43 505.9 336.1 165.9 3.9 503.6 334.3 166.7 2.6 514.1 511.9 Dec__ 34.75 34.62 34.49 32.44 506.0 338.7 164.4 3.0 510.9 337.2 170.7 3.1 514.4 519.3 1976—Jan.i.. 34.32 34.24 34.08 32.17 506.2 338.9 164.7 2.6 511.1 337.9 170.3 2.9 514.1 519.0 Feb.... 34.05 33.97 33.83 31.85 507.6 339.5 165.5 2.6 504.2 337.5 163.4 3.4 515.6 512.2 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 31.95 507.8 338.3 167.2 2.3 506.0 339.9 163.4 • 2.8 515.3 513.6 June... 34.34 34.21 34.12 32.01 513.9 342.3 167.9 3.7 512.7 342.5 166.7 3.6 522.3 521.2 July. .. 34.39 34.25 34.15 32.19 514.9 344.2 168.0 2.7 513.9 343.7 167.7 2.5 523.6 522.7 1 Averages of daily figures. Member bank reserve series reflect actual 3 Averages of daily figures. Deposits subject to reserve requirements reserve requirement percentages with no adjustment to eliminate the include total time and savings deposits and net demand deposits as defined effect of changes in Regulations D and M. There are breaks in series by Regulation D. Private demand deposits include all demand deposits because of changes in reserve requirements effective Dec. 12, 1974, Feb. except those due to the U.S. Govt., less cash items in process of collection 13, May 22, and Oct. 30, 1975, and Jan. 8, 1976. In addition, effective and demand balances due from domestic commercial banks. Jan. 1, 1976, statewide branching in New York was instituted. The sub­ 4 “Total member bank deposits” subject to reserve requirements, plus sequent merger of a number of banks raised required reserves because of Euro-dollar borrowings, loans sold to bank-related institutions, and higher reserve requirements on aggregate deposits at these banks. certain other nondeposit items. This series for deposits is referred to as 2 Reserves available to support private nonbank deposits are defined “the adjusted bank credit proxy.” as (1) required reserves for (a) private demand deposits,, (b) total time Note.—Back data and estimates of the impact of required reserve and savings deposits, and (c) nondeposit sources subject to reserve re­ changes may be obtained from the Banking Section, Division of Research quirements, and (2) excess reserves. This series excludes required reserves and Statistics, Board of Governors of the Federal Reserve System, Wash­ for net interbank and U.S. Govt, demand deposits. ington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial3 and and industrial3 invest­ Plus U.S. invest­ Plus U.S. ments 1 Total1 l s o o a l n d s 2 Total l P o l a u n s s T u re ry as­ Other4 ments 1 Total1 s lo o a ld n s 2 Total l P o l a u n s s T u re r a y s­ Other4 sold 2 sold 2 1971—Dec. 31___ 485.7 320.9 323.7 116.1 117.7 60.6 104.2 497.9 328.3 331.1 118.5 120.2 64.9 104.7 1972—Dec. 31___ 558.0 378.9 381.5 130.2 131.9 62.6 116.5 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Dec. 31___ 633.4 449.0 453.3 156.4 159.0 54.5 129.9 647.3 458.5 462.8 159.4 162.0 58.3 130.6 1974—Dec. 315. .. 690.4 500.2 505.0 183.3 186.0 50.4 139.8 705.6 510.7 515.5 186.8 189.6 54.5 140.5 1975—Aug. 27___ 709.3 490.2 494.7 176.5 179.3 75.0 144.1 706.1 490.3 494.8 175.3 178.1 72.0 143.8 Sept. 24___ 712.7 491.5 496.0 175.4 178.2 76.7 144.5 712.5 492.8 497.3 175.8 178.6 75.4 144.3 Oct. 29___ 716.3 495.0 499.7 176.3 179.2 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.... 721.1 496.9 501.3 176.0 178.5 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. 25p . .. 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 26*... 737.6 500.6 505.0 170.7 173.4 93.0 144.0 735.1 500.0 504.4 170.8 173.5 90.5 144.6 June 30*... 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 July 28*... 743.1 504.7 509.2 171.0 173.8 92.7 145.7 740.3 505.2 509.7 170.7 173.5 89.5 145.6 Aug. 25* . .. 748.7 507.6 511.6 171.0 173.5 95.0 146.1 746.1 508.5 512.5 170.3 172.8 91.8 145.8 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 banks, 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: Back data for 1959-75 available about $400 million as of June 30, 1972 and by about $1.2 billion as of from Banking Section, Division of Research and Statistics; for 1948-58, March 31, 1976. see Aug. 1968 Bulletin, pp. A-94—A-97. For description of seasonally 4 Farmers Home Administration insured notes included in “Other adjusted series for total loans and investments, see Dec. 1971 Bulletin, securities” rather than in loans beginning June 30, 1971, when such notes pp. 971-73 and for commercial and industrial loans, see July 1972 Bul­ totaled about $700 million. letin, p. 683. Data are for last Wed. of month except for June 30 and Dec. 5 Data beginning June 30, 1974, include one large mutual savings 31; data are partly or wholly estimated except when June 30 and Dec. bank that merged with a nonmember commercial bank. As of that date 31 are call dates. there were increases of about $500 million in loans, $100 million in “Other securities,” and $600 million in “Total loans and investments.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 COMMERCIAL BANKS □ SEPTEMBER 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 assets3 and row­ ac­ of insurance Total Loans capital Total3 Demand ings counts6 banks 1 U.S. Other ac­ De­ Treas­ 2 counts4 mand Time Times ury U.S. Other Govt. Last-Wednesday-of-month series 7 All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1947—Dec. 31 ».. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1960—Dec. 31... 199,509 117,642 61,003 20,864 52,150 257,552 229,843 17,079 1,799 5,945 133,379 71,641 163 20,986 13,472 1970—Dec. 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 19,375 42,958 13,686 1971—Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Dec. 31... 683,799 494,947 58,277130,574118,276 835,224 681,847 36,839 6,773 9,865 263,367 365,002 58,994 58,128 14,171 1974—Dec. 31... 744,107 549,183 54,451140,473128,042 919,552 747,903 43,48311,496 4,807 267,506 420,611 58,369 63,650 14,465 1975—Aug. 27... 741,630 525,780 72,020143,830104,750 900,870 724,650 31,54010,570 2,830 242,590 437,120 59,920 66,620 14,595 Sept. 24... 743,970 524,270 75,360144,340106,220 906,410 726,840 31,33010,990 3,180 240,570 440,770 61,030 66,980 14,612 Oct. 29... 747,250 526,420 75,940144,890110,670 915,890 736,870 31,90011,210 2,650 247,590 443,520 60,640 67,550 14,628 Nov. 26... 757,450 532,660 79,400145,390123,150 939,310 753,000 34,56011,160 3,530 257,640 446,110 66,780 68,000 14,624 Dec. 31... 775,794 546,172 84,119145,503133,614 964,918 786,252 41,811 12,020 3,114 278,692 450,615 60,224 69,125 14,633 1976—Jan. 28... 756,630 527,820 84,770144,040112,720 927,140 743,140 32,11011,540 3,790 245,600 450,100 67,250 68,870 14,611 Feb. 28... 757,540 528,560 85,420143,560111,470 928,540 741,230 31,56011,370 4,010 242,810 451,480 68,490 69,110 14,624 Mar. 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 32,28010,990 4,120 250,200 455,560 68,480 70,610 14,632 May 26... 767,070 531,990 90,470144,610111,740 928,140 755,010 33,62010,530 3,660 247,630 459,570 66,170 71,400 14,637 June 30r*\. 779,820 543,740 90,800145,280125,170 957,130 782,850 38,27010,580 4,660 266,450 462,890 65,870 72,090 14,636 July 28... 772,860 537,760 89,540145,560111,560 934,620 761,490 33,10010,160 3,540 250,700 463,990 66,790 72,190 14,635 Aug.25p. . 782,080 544,460 91,800145,820109,110 940,510 759,400 33,380 9,650 3,710 247,400 465,260 72,250 72,550 14,635 Members of F.R. System: 1941 _Dec. 31... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1947_Dec. 31... 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31... 165,619 99,933 49,106 16,579 45,756 216,577 193,029 16,437 1,639 5,287 112,393 57,273 130 17,398 6,174 1970—Dec. 31».. 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,767 1971—Dec. 31... 405,087 277,717 47,633 79,738 86,189 511,353 425,380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 1972—Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5,704 1973—Dec. 31... 528,124 391,032 41,494 95,598100,098 655,898 526,837 34,782 5,843 8,273 202,564 275,374 55,611 44,741 5,735 1974—Dec. 31... 568,532 429,537 38,921100,073106,995 715,615 575,563 41,06210,052 3,183 204,203 317,064 52,850 48,240 5,780 1975—Aug. 27... 554,007 402,281 51,899 99,827 87,208 686,266 545,021 29,335 8,932 2,099 183,283 321,372 54,175 50,281 5,792 Sept. 24... 555,096 400,695 54,355100,046 88,004 689,717 546,360 29,150 9,360 2,343 181,340 324,167 54,929 50,543 5,792 Oct. 29... 556,383 401,492 54,546100,345 91,397 695,312 552,649 29,568 9,578 1,952 186,851 324,700 54,250 50,963 5,796 Nov. 26... 564,023 405,805 57,471100,747102,103 714,112 564,835 32,064 9,527 2,708 194,492 326,044 60,162 51,199 5,791 Dec. 31... 578,560 416,366 61,519100,675108,489 733,635 590,776 38,56910,015 2,255 210,824 329,113 53,646 52,078 5,788 1976—Jan. 28... 563,387 402,020 61,704 99,663 93,808 705,093 556,274 29,712 9,529 2,908 185,773 328,352 61,022 52,167 5,765 Feb. 28... 562,940 401,731 61,869 99,340 91,914 704,357 552,942 29,145 9,357 2,977 183,458 328,005 62,051 52,300 5,768 Mar. 31io. 569,913 406,148 64,636 99,129100,455 710,228 573,878 34,934 9,848 1,769 194,932 332,395 57,470 53,191 5,778 Apr. 28... 567,384 402,147 64,892100,345 93,743 702,130 561,110 29,923 8,978 3,281 189,361 329,567 62,002 53,753 5,775 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 5,777 June 30r . . 577,509 411,707 65,626100,176104,036 726,826 585,345 35,595 8,570 3,669 202,131 335,380 59,302 54,987 5,776 July 28... 570,238 405,401 64,467100,370 92,393 706,431 565,287 30,721 8,150 2,721 188,701 334,994 60,344 55,051 5,762 Aug. 25 p . . 578,200 410,790 66,747100,663 89,366 710,710 562,360 30,943 7,642 2,793 185,915 335,067 65,878 55,372 5,762 Call date series Insured banks: Total: 1941—Dec. 31... 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 •10 6,844 13,426 1947—Dec. 31... 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1960—Dec. 31... 198,011 117,092 60,468 20,451 51,836 255,669 228,401 16,921 1,667 5,932 132,533 71,348 149 20,628 13,119 1970—Dec. 319.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1972—Dec. 31... 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Dec. 31... 678,113 490,527 57,961129,625116,266 827,081 677,358 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,^6 944,654 775,209 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 67,3901 434,81G 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 70,711 489,47C> 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 76,523i 534,20*7' 431,039 23,497 6,750 2,437 154,397 243,959 39,603 35,815 4,706 1975—June 30... 428,167 312,229 37,606 78,331 75,686. 536,836i 431,646 21,096 6,804 1,723 152,576 242,492 41,954 37,483 4,730 Dec. 31... 441,135 315,738 46,799 78,598 78,026i 553,285i 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

SEPTEMBER 1976 □ COMMERCIAL BANKS A15 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num­ FRS membership Cash lia­ Bor­ capital ber and FDIC assets 3 bilities row­ ac­ of insurance Total Loans U.S. and Total3 Demand ings counts6 banks l Treas­ Other capital De­ Time ury 2 ac­ mand Time 5 counts4 U.S. Other Govt. Call date series Insured banks (cont.): State member: 1941—Dec. 31.... 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,'739 621 13,874 4,025 1 2,246 1,502 1947—Dec. 31.... 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 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 25,472 125,460 101,512 11,091 750 1,720 45.734 42,218 5,478 9,232 1,147 1972—Dec. 31.... 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973—Dec. 31.... 130,240 97,828 10,532 21,880 29,387 166,780 131,421 14,425 1,968 2,318 49,859 62,851 15,914 11,617 1,076 1974—Dec. 31.... 140,373 108,346 9,846 22,181 30,473 181,683 144,799 17,565 3,301 746 49,807 73,380 13,247 12,425 1,074 1975—June 30. . . 134,759 100,968 12,004 21,787 31,466 179,787 141,995 18,751 2,771 443 48,621 65,654 14,380 12,773 1,064 1975—Dec. 31 . .. 137,620 100,823 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 1960—Dec. 31.... 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,140 14,095 19 3,232 6,948 1970—Dec. 319... 92,399 57,489 16.039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1972—Dec. 31.... 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Dec. 31.... 149,638 99,143 16,467 34,027 16,167 170,831 150,170 1,467 586 1,582 58,966 87,569 1,920 12,862 8,229 1974—Dec. 31.... 165,709 111,300 15,211 39,199 18,380 190,435 165,827 1,525 642 1,616 61,240 100,804 3,138 14,799 8,436 1975—June 30. . . 173,238 113,074 18,223 41,942 18,029 198,157 172,707 1,397 676 940 60,706 108,816 2,976 15,730 8,526 1975—Dec. 31. .. 183,645 118,609 22,109 42,927 19,778210,874 184,210 1,689 719 853 65,560 115,203 3,128 16,400 8,585 Noninsured nonmember: 1941—Dec. 31.... 1,457 455 761 241 763 2,283 1,872 529 i,:>91 253 13 329 852 1947—Dec. 31 8... 2,009 474 1,280 255 576 2,643 2,251 177 185 is 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— D3e1c..... 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—Dec. 31.... 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 1973—Dec. 31.... 6,192 4,927 316 949 2,010 8,650 4,996 591 344 9 1,836 2,215 1,463 524 207 1974—Dec. 31.... 9,981 8,461 319 1,201 2,667 13,616 6,627 897 803 8 2,062 2,857 2,382 611 249 1975—June 30. . . 11,725 9,559 358 1,808 3,534 16,277 8,314 1,338 957 11 2,124 3,320 3,110 570 253 1975—Dec. 31 .. . 13,674 11,283 490 1,902 5,359 20,544 11,323 1,552 1,291 6 2,308 5,115 3,449 651 261 Total nonmember: 1941—Dec. 31.... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 L157 5,!504 3,613 18 1,288 7,662 1947—Dec. 31.... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1960—Dec. 31.... 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 3,590 7,300 1970—Dec. 319... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—Dec. 31.... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—Dec. 31.... 133,198 85,325 18,313 29,559 16,562 154,085 134,091 1,895 633 1,850 54.406 75,305 1,726 11,429 8,223 1973—Dec. 31.... 155,830 104,070 16,783 34,976 18,177 179,480 155,165 2,057 930 1,592 60,802 89,784 3,383 13,386 8,436 1974—Dec. 31.... 175,690 119,761 15,530 40,400 21,047204,051 172,454 2,422 1,445 1,624 63,302 103,661 5,520 15,410 8,685 1975—June 30. . . 184,963 122,633 18,581 43,750 21,563 214,434 181,021 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 25,137231,418 195,533 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 June 30, 1971, Farmers Home Administration notes were Note.—Data are for all commercial banks in the United States (including classified as “Other securities” rather than “Loans.” As a result of this Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to “Other securities” all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; nondeposit trust companies; and U.S. branches of foreign banks. Effective Mar. 31, 1976, includes “reserves for loan losses” and “un­ Figures for member banks before 1970 include mutual savings banks earned income on loans.” as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks See also table (and notes) at the bottom of p. A-24. are not included in insured commercial banks. 2 S,ee first 2 paragraphs of note 1. Effective June 30, 1969, commercial banks and member banks exclude 3 Reciprocal balances excluded beginning with 1942. a small national bank in the Virgin Islands; also, member banks exclude, 4 Includes items not shown separately. See also note 1. and noninsured commercial banks include, through June 30, 1970, a small Effective Mar. 31, 1976, “reserves for loan losses” and unearned income member bank engaged exclusively in trust business; beginning 1973, on loans,” which for all commercial banks are estimated to be approx­ exclude 1 national bank in Puerto Rico. imately $14.5 billion, have been netted against “other assets” and “other Beginning Dec. 31, 1973, June 30, 1974, and Dec. 31, 1974, June 30, liabilities” and, therefore, against “total assets/liabilities.” 1975, respectively, member banks exclude and noninsured nonmember 5 See third paragraph of note 1 above. banks include 1, 2, 3, and 4 noninsured trust companies that are member 6 Effective Mar. 31, 1976, includes “reserves for securities” and a of the Federal Reserve System. portion of “reserves for loan losses.” Comparability of figures for classes of banks is affected somewhat by 7 For the last-Wednesday-of-the-month series, figures for call dates changes in F.R. membership, deposit insurance status, and by mergers are shown for June and December as soon as they became available. etc. 8 Beginning with Dec. 31, 1947, the series was revised; for description, Figures are partly estimated except on call dates. see note 4, p. 587, May 1964 Bulletin. For revisions in series before June 30, 1947, see July 1947 Bulletin, 9 Figure takes into account the following changes, which became pp. 870-71. effective June 30, 1969: (1) inclusion of consolidated reports (including Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 COMMERCIAL BANKS □ SEPTEMBER 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 Nonbanks 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 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 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 States and political subdivisions............................... 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 States and political subdivisions............................... 100,887 100,614 72,949 6,847 3,060 24,077 38,965 27,938 All other......................................................................... 8,563 7,401 4,914 556 229 1,280 2,850 3,649 Federal funds sold and securities purchased under agreements to resell..................................................... 39,250 37,323 29,122 2,488 1,520 14,562 10,551 10,129 Commercial banks........................................................... 34,099 32,172 24,075 2,080 998 11,094 9,903 10,023 Brokers and dealers......................................................... 3,700 3,700 3,646 62 468 2,614 501 53 Others.................................................................................. 1,452 1,452 1,400 346 54 854 146 52 Other loans............................................................................ 507,202 497,846 387,439 73,495 22,261 143,701 147,982 119,763 Real estate loans............................................................... 134,770 134,588 96,018 8,448 1,371 35,198 51,002 38,752 6,237 6,224 2,702 8 11 302 2,381 3,534 Secured by residential properties.............................. 82,307 82,177 59,791 4,138 917 22,650 32,087 22,516 1- to 4-family residences........................................ 76,456 76,331 55,190 3,259 840 20,588 30,503 21,267 FHA insured......................................................... 5,510 5,493 4,786 238 47 2,619 1,882 724 VA guaranteed...................................................... 3,081 3,058 2,610 174 20 1,353 1,063 471 Other...................................................................... 67,865 67,780 47,793 2,847 773 16,616 27,557 20,071 Multifamily properties............................................ 5,850 5,846 4,601 879 77 2,062 1,584 1,249 FHA insured......................................................... 493 492 449 91 24 158 175 44 Other...................................................................... 5,358 5,354 4,153 787 53 1,904 1,409 1,205 Secured by other properties...................................... 46,226 46,187 33,525 4,302 443 12,245 16,534 12,702 Loans to domestic and foreign banks......................... 12,624 9,553 8,686 3,366 584 3,905 831 3,938 Loans to other financial institutions........................... 29,611 29,276 28,088 10,187 4,442 11,199 2,259 1,523 Loans on securities to brokers and dealers............... 7,175 7,055 6,964 4,477 911 1,400 176 210 Other loans for purch./carry securities....................... 3,916 3,822 3,193 415 289 1,560 929 723 Loans to farmers.............................................................. 20,158 20,129 11,244 94 162 2,564 8,424 8,914 Commercial and industrial loans.................................. 179,348 174,316 145,930 38,553 12,002 55,749 39,626 33,419 Loans to individuals........................................................ 106,352 106,019 75,536 4,854 1,717 26,871 42,093 30,816 Instalment loans........................................................... 83,205 82,969 58,830 3,153 925 21,178 33,574 24,375 Passenger automobilies.......................................... 33,401 33,279 21,963 432 163 6,600 14,769 11,437 Residential-repair/modernize................................ 5,859 5,845 4,189 222 36 1,731 2,199 1,670 Credit cards and related plans............................. 12,312 12,311 10,846 1,107 509 6,048 3,181 1,466 Charge-account credit cards.............................. 9,501 9,500 8,506 815 478 4,817 2,395 995 Check and revolving credit plans..................... 2,811 2,810 2,340 293 31 1,231 785 471 Other retail consumer goods................................. 15,318 15,283 10,615 164 108 3,749 6,594 4,704 Mobile homes....................................................... 8,721 8,719 6,276 97 39 2,221 3,919 2,445 Other...................................................................... 6,597 6,564 4,338 67 69 1,527 2,675 2,259 Other instalment loans............................................ 16,315 16,251 11,217 1,228 109 3,049 6,831 5,098 Single-payment loans to individuals........................ 23,147 23,050 16,706 1,701 792 5,694 8,520 6,441 All other loans................................................................. 13,248 13,087 11,781 3,100 784 5,255 2,643 1,466 Total loans and securities................................................... 776,074 762,400 578,755 94,483 30,915 211,880 241,478 197,319 Fixed assets—Buildings, furniture, real estate............... 17,474 17,390 13,061 1,415 539 5,232 5,875 4,413 Investments in subsidiaries not consolidated................. 2,015 1,993 1,970 835 146 958 31 45 Customer acceptances outstanding.................................. 8,952 8,679 8,424 4,319 249 3,538 318 527 Other assets............................................................................ 27,069 25,937 23,093 6,586 1,287 11,117 4,103 3,976 Total assets............................................................................ 965,198 944,654 733,780 132,416 37,024 276,454 287,886 231,418 Number of banks................................................................. 14,633 14,372 5,787 12 9 155 5,611 8,846 1 Member banks exclude and nonmember banks include 4 noninsured Note.—Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System, and bank-premises subsidiaries and other significant majority-owned domestic member banks exclude 2 national banks outside the continental United subsidiaries. Figures for total loans and for individual categories of States. securities are reported on a gross basis—that is, before deduction of 2 See table (and notes), Deposits Accumulated for Payment of Personal valuation reserves. Loans, p. 24. Back data in lesser detail were shown in previous Bulletins. Beginning 3 Demand deposits adjusted are demand deposits other than domestic with the fall Call Report, data for future spring and fall Call Reports will commercial interbank and U.S. Govt., less cash items reported as in be available from the Data Production Section of the Division of Data process of collection. Processing. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ COMMERCIAL BANKS A17 LIABILITIES AND CAPITAL BY CLASS OF BANK, DECEMBER 31, 1975 (Assets and liabilities are shown in millions of dollars.) Member banks1 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 18,726 18,595 13,058 779 191 3,867 8,221 5,667 Foreign governments, central banks, etc..................... 1,859 1,659 1,610 1,318 18 261 13 248 Commercial banks in United States............................ 33,768 33,453 32,048 14,436 1,868 11,442 4,302 1,720 Banks in foreign countries............................................. 6,719 5,646 5,459 3,906 213 1,212 129 1,259 Certified and officers’ checks, etc.................................. 11,548 10,659 8,523 2,618 299 2,804 2,802 3,025 Time and savings deposits.................................................. 462,915 455,458 339,350 45,551 16,302 124,194 153,303 123,565 Savings deposits............................................................... 160,087 159,725 114,228 7,061 2,402 40,647 64,118 45,860 280 280 223 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 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 WEEKLY REPORTING BANKS □ SEPTEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA (In millions of dollars) Loans Federal funds sold, etc.2 Other To brokers For purchasing and dealers or carrying securities To nonbank Total involving— financial loans institutions Wednesday and To brokers To invest­ To Com­ and dealers others ments 1 com­ To mer­ Agri­ Total mer­ US. Other others Total1 cial cul­ Real cial Treas­ se­ and tural Pers. estate banks ury curi­ indus­ U.S. U.S. and se­ ties trial Treas­ Other Treas­ Other sales Other curi­ ury secs. ury secs. finance ties1 secs. secs. COS., etc. Large banks— Total 1975 Aug. 6................. 386,001 17,335 13,768 2,568 538 461 275,932 120,082 3,650 1,484 3,642 115 2,299 8,966 20,043 59,273 1 3 383,797 15,920 13,455 1,533 471 461 274,637 119,755 3,651 815 3,763 115 2,287 8,919 19,969 59,332 20................. 382,864 14,283 11,923 1,288 519 553274,452 119,497 3,662 676 3,542 119 2,262 9,024 19,958 59,307 2 7 383,733 16,142 13,775 1,456 452 459273,571 119,071 3,653 896 3,403 99 2,276 8,815 19,929 59,303 1976 July 7................... 389,721 19,422 15,936 1,940 786 760270,193 112,439 3,981 1,122 6,352 83 2,546 7,523 18,182 61,521 1 4 389,035 18,677 14,672 2,521 722 762269,121 112,141 3,980 1,135 6,119 83 2,541 7,145 18,095 61,621 21.................. 387,646 17,807 14,810 1,629 677 691 268,919 112,051 3,976 1,198 6,321 81 2,508 7,177 17,892 61,748 2 8 383,909 16,321 13,393 1,788 537 603267,039 111,256 4,005 770 6,059 78 2,536 7,215 17,764 61,767 Aug. 4................. 389,008 18,946 15,929 1,611 715 691 268,128 111 ,316 4,015 1 ,029 6,430 79 2,556 7,039 17,706 61,810 11................... 390,988 20,533 15,758 3,189 817 769268,697 111,391 4,027 1,717 6,515 82 2,575 6,956 17,631 61,844 18................... 391,647 19,412 15,613 2,198 719 882269,133 110,782 4,173 1,204 7,020 83 2,539 7,159 17,455 61,960 25................. 390,148 19,266 15,595 2,254 670 747267,852 110,688 4,171 1,181 6,663 82 2,543 6,874 17,396 61,894 New York City 1975 Aug. 6................... 89,759 1,417 906 359 152 72,003 37,836 110 1,133 2,490 50 435 3,087 7,878 8,858 1 3 89,166 1,790 1,586 54 150 70,921 37,586 109 634 2,596 50 433 3,010 7,804 8,902 20................... 89,602 1,890 1,581 49 260 70,612 37,322 111 596 2,299 51 418 3,040 7,809 8,916 2 7 89,012 2,071 1,838 65 168 70,061 37,120 109 809 2,194 31 414 2,973 7,825 8,939 1976 July 7................... 86,883 1,210 632 324 10 244 67,404 33,397 84 957 4,001 13 393 2,562 6,715 9,336 1 4 87,012 1,507 710 563 234 66,810 33,162 86 1,017 3,794 13 394 2,424 6,638 9,343 21................... 87,910 2,624 2,284 141 199 66,588 32,996 85 1,095 3,901 12 390 2,466 6,616 9,359 2 8 85,189 1,712 1,367 157 188 65,059 32,517 80 672 3,658 12 389 2,465 6,604 9,320 Aug. 4................... 86,431 1,726 1,292 147 62 225 65,614 32,551 85 867 3,686 13 388 2,415 6,589 9,277 11................... 86,762 2,257 1,613 337 75 232 66,035 32,634 81 1,497 3,734 14 390 2,420 6,500 9,251 18................... 88,221 2,201 1,186 570 78 367 66,485 32,477 79 1,028 4,278 16 393 2,578 6,511 9,280 25................... 87,261 2,554 1,792 482 68 212 65,503 32,309 79 1,042 3,970 16 396 2,345 6,504 9,233 Outside New York City 1975 Aug. 6................... 296,242 15,918 12,862 2,209 538 309203,929 82,246 3,540 351 1,152 65 1,864 5,879 12,165 50,415 1 3 294,631 14,130 11,869 1,479 471 311 203,716 82,169 3,542 181 1,167 65 1,854 5,909 12,165 50,430 20................... 293,262 12,393 10,342 1,239 519 293203,840 82,175 3,551 80 1,243 68 1,844 5,984 12,149 50,391 2 7 294,721 14,071 11,937 1,391 452 291 203,510 81,951 3,544 87 1,209 68 1,862 5,842 12,104 50,364 1976 July 7................... 302,838 18,212 15,304 1,616 776 516202,789 79,042 3,897 165 2,351 70 2,153 4,961 11,467 52,185 1 4 302,023 17,170 13,962 1,958 722 528202,311 78,979 3,894 118 2,325 70 2,147 4,721 11,457 52,278 21................... 299,736 15,183 12,526 1,488 677 492202,331 79,055 3,891 103 2,420 69 2,118 4,711 11,276 52,389 2 8 298,720 14,609 12,026 1,631 537 415 201,980 78,739 3,925 98 2,401 66 2,147 4,750 11,160 52,447 Aug. 4................... 302,577 17,220 14,637 1,464 653 466202,514 78,765 3,930 162 2,744 66 2,168 4,624 11,117 52,533 11................... 304,226 18,276 14,145 2,852 742 537202,662 78,757 3,946 220 2,781 68 2,185 4,536 11,131 52,593 18................... 303,426 17,211 14,427 1,628 641 515202,648 78,305 4,094 176 2,742 67 2,146 4,581 10,944 52,680 25................... 302,887 16,712 13,803 1,772 602 535202,349 78,379 4,092 139 2,693 66 2,147 4,529 10,892 52,661 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

SEPTEMBER 1976 a WEEKLY REPORTING BANKS A19 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities Other securities To commer­ Notes and bonds cial banks maturing— Obligations Other bonds, Loan of States corp. stocks, Wednesday loss and and Con­ For­ reserve political securities sumer eign All and un­ subdivisions instal­ govts.3 other earned Total Bills Total Do­ For­ ment income mes­ eign on Within 1 to After tic loans1 1 yr. 5 yrs. 5 yrs. Tax Certif. war­ All of rants4 other partici­ All pation5 other6 Large banks— Total 1975 2,267 5,818 34,467 1,488 18,082 5,744 32,241 6,921 5,172 17,087 3,061 60,493 6,547 39,755 2,381 11,810 6 2,211 5,726 34,505 1,444 17,900 5,755 32,785 7,563 5,169 16,979 3,074 60,455 6,620 39,696 2,382 11,757 .13 2,184 5,770 34,575 1,461 18,162 5,747 33 120 8,110 4,461 17,444 3,105 61,009 6,699 40,185 2,381 11,744 2,282 5,580 34,696 1,561 17,768 5,761 33,554 8,584 4,630 17,154 3,186 60,466 6,293 40,254 2,367 11,552 1976 2,338 5,728 36,738 1,797 18,260 8,417 41,194 12,492 6,202 20,094 2,406 58,912 5,785 40,073 2,418 10,636 ..................July 7 2,218 5,668 36,764 1,782 18,283 8,454 41,668 12,069 6,272 20,111 3,216 59,569 6,132 40,214 2,409 10,814 .14 2,153 5,616 36,883 1,768 18,045 8,498 41,310 11,955 6,146 20,119 3,090 59,610 6,039 40,172 2,430 10,969 2,032 5,622 37,044 1.764 17,649 8,522 41,182 12,008 6,176 19,954 3,044 59,367 5,942 40,078 2,450 10,897 2,047 5,776 37,052 1,760 18,057 8,544 42,745 11,918 6,443 21,106 3,278 59,189 5,864 40,069 2,476 10,780 4 1,890 5,648 37,113 1,781 18,126 8,599 42,376 11,533 6,351 21,091 3,401 59,382 6,122 40,168 2,455 10,637 2,016 6,130 37,208 1,749 18,287 8,632 43,546 11,012 6,240 22,000 4,294 59,556 6,152 40,217 2,459 10,728 1,879 5,933 37,358 1,801 18,025 8,636 43,376 11,447 6,157 21,590 4,182 59,654 6,069 40,227 2,499 10,859 New York City 1975 1,128 2,601 3,532 570 4,054 1,759 7,003 1,173 697 4,280 853 9,336 1,524 5,531 174 2,107 1,091 2,500 3,531 560 3,884 1,769 7 277 1,622 671 4,111 873 9,178 1,537 5,450 174 2,017 1,079 2,547 3,537 561 4,096 1,770 7,571 1,841 549 4,301 880 9,529 1,558 5,766 174 2,031 .20 1,106 2,385 3,545 655 3,743 1,787 7,401 1,631 579 4,241 950 9,479 1,420 5,915 173 1,971 1976 862 2,534 3,801 553 3,824 1,628 8,884 3,081 971 4,226 606 9,385 1,665 6,163 193 1,364 ..................July 7 795 2,489 3,822 555 3,918 1,640 9,143 3,024 950 4,227 942 9,552 1,685 6,197 197 1,473 14 810 2,444 3,826 539 3,694 1,645 9,140 3,087 900 4,226 927 9,558 1,683 6,170 186 1,519 679 2,475 3,833 522 3,485 1,652 9,018 3,105 987 4,008 918 9,400 1,652 6,112 185 1,451 744 2,634 3,814 545 3,670 1,664 9,756 3,224 924 4,618 990 9,335 1,594 6,092 185 1,464 4 627 2,443 3,821 495 3,812 1,684 9,123 2,765 911 4,451 996 9,347 1,590 6,118 188 1,451 .11 753 2,663 3,836 504 3,786 1,697 10,229 2,709 1,004 5,123 1,393 9,306 1,498 6,162 203 1,443 637 2,541 3,866 548 3,707 1,690 9,978 2,838 954 4,948 1,238 9,226 1,431 6,139 192 1,464 .25 Outside New York City 1975 1,139 3,217 30,935 918 14,028 3,985 25,238 5,748 4,475 12,807 2,208 51,157 5,023 34,224 2,207 9,703 1,120 3,226 30,974 884 14,016 3,986 25,508 5,941 4,498 12,868 2,201 51,277 5,083 34 246 2,208 9,740 .13 1,105 3,223 31,038 900 14,066 3,977 25,549 6,269 3,912 13,143 2,225 51,480 5,141 34,419 2,207 9,713 1,176 3,195 31,151 906 14,025 3,974 26,153 6,953 4,051 12,913 2,236 50,987 4,873 34,339 2,194 9,581 1976 1,476 3,194 32,937 1,244 14,436 6,789 32,310 9,411 5,231 15,868 1,800 49,527 4,120 33,910 2,225 9,272 7 1,423 3,179 32,942 1,227 14,365 6,814 32,525 9,045 5,322 15,884 2,274 50,017 4,447 34,017 2,212 9,341 .14 1,343 3,172 33,057 1,229 14,351 6,853 32,170 8,868 5,246 15,893 2,163 50,052 4,356 34,002 2,244 9,450 .21 1,353 3,147 33,211 1,242 14,164 6,870 32,164 8,903 5,189 15,946 2,126 49,967 4,290 33,966 2,265 9,446 .28 1,303 3,142 33,238 1,215 14,387 6,880 32,989 8,694 5,519 16,488 2,288 49,854 4,270 33,977 2,291 9,316 4 1,263 3,205 33,292 1,286 14,314 6,915 33,253 8,768 5,440 16,640 2,405 50,035 4,532 34,050 2,267 9,186 .11 1,263 3,467 33,372 1,245 14,501 6,935 33,317 8,303 5,236 16,877 2,901 50,250 4,654 34,055 2,256 9,285 .18 1,242 3,392 33,492 1,253 14,318 6,946 33,398 8,609 5,203 16,642 2,944 50,428 4,638 34,088 2,307 9,395 ,25 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 WEEKLY REPORTING BANKS □ SEPTEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BAN KSA-Continued (In millions of dollars) Deposits Demand Cash Bal­ Invest­ items Re­ Cur­ ances ments Total in serves rency with in sub­ Other assets/ Domestic Wednesday process with and do­ sidiar­ assets total States interbank of F.R. coin mestic ies not liabil­ and collec­ Banks banks consol­ ities 1 polit­ For­ tion idated ical U.S. eign Total IPC sub­ Govt. Com­ Mutual govts., divi­ mer­ sav­ etc. 3 sions cial ings Large banks— Total 1975 Aug. 6...................... 31,265 21,350 4,471 11,257 1,748 36,900492,992 158,469 115,571 5,947 1,700 23,152 824 1,261 1 3 30,356 22,051 4,905 10,667 1,739 36,476489,991 155,738 116,333 5,683 1,169 20,909 738 1,253 20...................... 30,288 23,497 4,929 10,786 1,734 35,917490,015 156,769 115,476 5,741 2,062 22,397 685 1,158 2 7 .......... 30,347 20,627 5,145 11,222 1,741 36,488489,303 156,649 115,773 5,713 1,394 21,964 725 1,030 1976 July 7...................... 41,460 21,468 4,990 13,827 2,174 47,517 521,157 175,604 125,661 6,162 1,805 27,478 961 1,165 1 4 37,017 21,698 5,444 11,931 2,125 45,705 512,955 168,505 124,278 5,815 1,181 23,377 842 1,172 21...................... 35,535 21,025 5,403 12,723 2,114 44,564509,010 167,352 120,634 5,838 2,585 23,537 742 1,066 2 8 32,282 21,701 5,504 11,278 2,137 45,218502,029 161,504 117,802 5,635 1,865 22,560 726 1,232 Aug. 4...................... 36,693 25,324 4,838 11,253 2,125 45,878515,119 167,268 119,731 6,215 3,088 24,470 879 1,193 11...................... 32,998 18,588 5,216 11,556 2,153 44,699506,198 161,407 118,539 5,578 1,647 22,001 788 1,193 18...................... 33,295 21,653 5,348 11,612 2,155 45,133510,843 161,896 118,387 5,570 2,621 22,214 778 1,028 25...................... 31,461 20,113 5,383 12,133 2,135 44,879506,252 159,381 116,109 5,369 1,932 23,085 734 1,129 New York City 1975 Aug. 6. 10,314 6,784 653 4,688 792 12,999 125,989 44,922 26,267 505 154 11,008 499 1,010 13. 9,527 7,268 668 4,268 790 12,772 124,459 43,233 25,799 543 125 9,922 429 1,023 20. 9,946 7,081 650 4,829 795 12,041 124,944 44,960 26,418 548 447 11,298 392 957 27. 10,755 5,499 684 4,856 794 12,809 124,409 45,130 26,492 463 239 10,854 424 834 1976 July 7...................... 12,897 7,617 711 5,843 931 16,396 131,278 49,899 28,022 539 161 12,616 552 853 14...................... 13,273 6,588 754 5,016 929 15,894 129,466 48,841 28,069 632 109 11,707 451 885 21...................... 13,185 5,577 731 5,565 944 14,923 128,835 49,654 27,887 584 446 11,467 396 796 28...................... 11,440 6,554 756 4,835 945 15,969 125,688 46,399 26,058 571 301 10,968 396 1,015 Aug. 4...................... 12,442 7,475 691 4,489 946 15,865 128,339 47,113 26,565 607 567 11,335 481 925 11...................... 11,436 5,373 718 4,917 954 14,717 124,877 45,601 25,888 526 214 10,337 422 978 18...................... 11,245 7,009 733 4,759 956 15,259 128,182 45,664 26,523 495 455 10,286 425 796 25...................... 11,047 5,288 722 5,285 949 15,062 125,614 45,420 25,871 465 307 11,064 388 898 Outside New York City 1975 Aug. 6. 20,951 14,566 3,818 6,569 956 23,901 367,003 113,547 89,304 5,442 1,546 12,144 325 251 13. 20,829 14,783 4,237 6,399 949 23,704365,532 112,505 90,534 5,140 1,044 10,987 309 230 20. 20,342 16,416 4,279 5,957 939 23,876 365,071 111,809 89,058 5,193 1,615 11,099 293 201 27. 19,592 15,128 4,461 6,366 947 23,679 364,894 111,519 89,281 5,250 1,155 11,110 301 196 1976 July 7. 28,563 13,851 4,279 7,984 1,243 31,121 389,879 125,705 97,639 5,623 1,644 14,862 409 312 14. 23,744 15,110 4,690 6,915 1,196 29,811 383,489 119,664 96,209 5,183 1,072 11,670 391 287 21. 22,350 15,448 4,672 7,158 1,170 29,641 380,175 117,698 92,747 5,254 2,139 12,070 346 270 28. 20,842 15,147 4,748 6,443 1,192 29,249 376,341 115,105 91,744 5,064 1,564 11,592 330 217 Aug. 4. 24,251 17,849 4,147 6,764 1,179 30,013 386,780 120,155 93,166 5,608 2,521 13,135 398 268 11 . 21,562 13,215 4,498 6,639 1,199 29,982 381,321 115,806 92,651 5,052 1,433 11,664 366 215 18. 22,050 14,644 4,615 6,853 1,199 29,874382,661 116,232 91,864 5,075 2,166 11,928 353 232 25. 20,414 14,825 4,661 6,848 1,186 29,817 380,638 113,961 90,238 4,904 1,625 12,021 346 231 For notes see pp. A-18 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ WEEKLY REPORTING BANKS A21 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA-Continued (In millions of dollars) Deposits (cont.) Borrowings from— Demand (cont.) Time and savings Total Fed­ equity eral Other capital IPC funds liabili­ and sub. For­ Certi­ States pur­ ties, notes/ Wednesday eign fied and Do­ chased, etc. 9 deben­ com­ and polit­ mes­ For­ etc. 8 F.R. tures 10 mer­ offi­ Total 7 ical tic eign Banks Other cial cers’ Sav­ Other sub­ inter­ govts.3 banks checks ings divi­ bank sions Large banks— Total 1975 4,944 5,070 223,164 65,838 113,248 23,034 7,607 12,056 49,320 29 4,013 22,205 35,792 .....................Aug. 6 4,531 5,122 223,626 65,782 113,669 23,086 7,721 12,022 47,669 446 4,018 22,661 35,833 ................................13 4,496 4,754 222,804 65,708 113,770 22,800 7,552 11,642 47,325 517 3,929 22,925 35,746 ................................20 4,752 5,298 222,989 65,652 114,114 22,685 7,585 11,649 46,996 34 3,774 23,118 35,743 .................................27 1976 5,950 6,422 224,003 80,055 107,016 19,886 6,523 8,802 55,459 15 3,659 22,712 39,705 .....................July 7 5,629 6,211 224,372 80,133 107,089 19,995 6,658 8,813 54,430 970 3,718 21,242 39,718 .................................14 5,174 7,776 223,780 80,182 106,717 19,972 6,679 8,595 52,813 66 4,012 21,298 39,689 .................................21 5,368 6,316 223,252 80,220 106,398 20,141 6,496 8,375 52,160 592 3,618 21,201 39,702 .................................28 5,303 6,389 222,012 80,403 105,530 20,012 6,344 8,126 59,805 707 3,889 21,428 40,010 .....................Aug. 4 5,290 6,371 221,983 80,541 105,432 20,076 6,338 8,006 56,904 562 3,885 21,451 40,006 .................................11 5,265 6,033 221,548 80,555 105,316 19,966 6,242 7,924 60,453 213 3,941 22,879 39,913 .................................18 5,150 5,873 221,749 80,639 105,425 20,181 6,016 7,903 59,056 120 3,807 22,239 39,900 .................................25 New York City 1975 3,547 1,932 47,528 7,341 26,628 1,674 3,413 7,545 13,867 1,771 8,027 9,874 .....................Aug. 6 3,355 2,037 47,647 7,336 26,730 1,703 3,540 7,445 13,449 329 1,818 8,105 9,878 .................................13 3,246 1,654 47,284 7,307 26,740 1,626 3,419 7,316 12,827 1,700 8,310 9,863 .................................20 3,533 2,291 47,361 7,326 26,969 1,581 3,374 7,253 11,890 1,744 8,414 9,870 .................................27 1976 4,593 2,563 42,678 9,025 23,316 1,219 2,725 5,341 16,035 1,611 9,700 11,355 .....................July 7 4,336 2,652 43,267 9,087 23,641 1,228 2,888 5,398 14,688 548 1,608 9,140 11,374 .................................14 3,793 4,285 43,042 9,005 23,467 1,263 2,951 5,336 13,626 1,596 9,551 11,366 .................................21 4,009 3,081 42,719 8,996 23,326 1,275 2,880 5,276 13,800 441 1,517 9,435 11,377 .................................28 3,922 2,711 42,045 8,956 22,938 1,303 2,838 5,051 15,968 600 1,731 9,465 11,417 .....................Aug. 4 3,962 3,274 41,853 8,953 22,918 1,256 2,829 4,967 14,614 287 1,783 9,296 11,443 ................................11 4,000 2,684 41,762 8,942 22,921 1,291 2,788 4,916 16,774 1,754 10,781 11,447 ................................18 3,834 2,593 41,528 8,930 22,983 1,281 2,592 4,848 15,755 1,603 9,844 11,464 ................................25 Outside New York City 1975 1,397 3,138 175,636 58,497 86,620 21,360 4,194 4,511 35,453 29 2,242 14,178 25,918 .....................Aug. 6 1,176 3,085 175,979 58,446 86,939 21,383 4,181 4,577 34,220 117 2,200 14,556 25,955 ................................13 1,250 3,100 175,520 58,401 87,030 21,174 4,133 4,326 34,498 517 2,229 14,615 25,883 ................................20 1,219 3,007 175,628 58,326 87,145 21,104 4,211 4,396 35,106 34 2,030 14,704 25,873 ................................27 1976 1,357 3,859 181,325 71,030 83,700 18,667 3,798 3,461 39,424 15 2,048 13,012 28,350 .....................July 7 1,293 3,559 181,105 71,046 83,448 18,767 3,770 3,415 39,742 422 2,110 12,102 28,344 ................................14 1,381 3,491 180,738 71,177 83,250 18,709 3,728 3,259 39,187 66 2,416 11,747 28,323 ..............................21 1,359 3,235 180,533 71,224 83,072 18,866 3,616 3,099 38,360 151 2,101 11.766 28,325 ..............................28 1,381 3,678 179,967 71,447 82,592 18,709 3,506 3,075 43,837 107 2,158 11,963 28,593 ...................Aug. 4 1,328 3,097 180,130 71,588 82,514 18,820 3,509 3,039 42,290 275 2.102 12,155 28,563 ..............................11 1,265 3,349 179,786 71,613 82,395 18,675 3,454 3,008 43,679 213 2,187 12,098 28,466 ..............................18 1,316 3,280 180,221 71,709 82,442 18,900 3,424 3,055 43,301 120 2,204 12,395 28,436 ..............................25 For notes see pp. A-l 8 and A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 WEEKLY REPORTING BANKS □ SEPTEMBER 1976 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKSA—Continued (In millions of dollars) Memoranda Large negotiable Savings ownership categories time CD’s All other large Total included in time time deposits14 Gross Wednesday Total loans De­ and savings deposits13 Individ­ Part­ liabili­ loans and mand uals ner­ Do­ ties of (gross) invest­ deposits and ships mestic banks ad­ ments ad­ non­ and govern­ All to justed11 (gross) justed Issued Issued Issued Issued profit cor­ mental other16 their ad­ Total to to Total to to orga­ pora­ units foreign justed11 IPC’s others IPC’s others niza­ tions for branches tions profit15 Large banks—Total 1975 Aug. 6.............................. 282,976 375,710102,352 80,881 53,864 27,017 33,901 17,938 15,963 65,838 1,826 1 3 280,646 373,886 103,304 81,472 54,240 27,232 34,206 18,016 16,190 65,782 2,205 20.............................. 280,375 374,504 102,022 80,894 54,262 26,632 33,535 17,984 15,551 65,708 2,848 2 7 279,417 373,437 102,944 81,327 54,597 26,730 33,469 18,102 15,367 65,652 2,617 1976 July 7.............................. 279,758 379,864 104,861 68,934 45,735 23,199 28,062 15,102 12,960 76,035 3.088 851 81 3,149 1 4 279,362 380,599 106,930 69,412 45,978 23,434 28,103 15,210 12,893 76,014 3.089 841 189 3,140 21.............................. 278,261 379,181 105,695 68,561 45,360 23,201 28,041 15,236 12,805 76,107 3,134 847 94 4,123 2 8 276,457 377,006 104,797 67,898 44,959 22,939 28,201 15,367 12,834 76,100 3,193 834 93 3,886 Aug. 4.............................. 277,642 379,576 103,017 66,672 44,211 22,461 27,991 15,293 12.698 76,213 3,240 862 88 3,781 11.............................. 280,181 381,939 104,761 66,534 44,092 22,442 27,882 15,255 12,627 76,260 3,301 891 89 4,211 18.............................. 279,548 382,650 103,766 65,957 43,771 22,186 27,993 15,397 12,596 76,181 3,335 955 84 5,763 25.............................. 278,280 381,310102,903 66,038 43,872 22,166 28,139 15,440 12.699 76,195 3,387 978 79 4,730 New York City 1975 Aug. 6............................. 73,145 89,484 23,446 28,647 18,366 10,281 8,124 4,970 3,154 7,341 1,066 1 3 71,803 88,258 23,659 28,855 18,498 10,357 8,102 5,004 3,098 7,336 1,014 20.............................. 71,612 88,712 23,269 28,626 18,597 10,029 7,979 4,908 3,071 7,307 1,817 2 7 70,975 87,855 23,282 28,773 18,852 9,921 7,959 4,924 3,035 7,326 1,536 1976 July 7.............................. 68,748 87,017 24,225 23,513 15,143 8,370 6,129 4,195 1,934 8,538 283 155 49 2,090 1 4 68,452 87,147 23,752 24,119 15,465 8,654 6,081 4,240 1,841 8,497 277 163 150 2,324 21.............................. 67,763 86,461 24,556 23,980 15,246 8,734 6,032 4,236 1,796 8,492 281 166 66 3,204 2 8 66,377 84,795 23,690 23,730 15,147 8,583 5,996 4,231 1,765 8,473 294 164 65 3,060 Aug. 4.............................. 66,968 86,059 22,769 23,099 14,752 8,347 6,014 4.262 1,752 8,432 297 163 64 2,909 11.............................. 67,736 86,206 23,614 23,056 14,793 8,263 5,877 4,211 1,666 8,423 309 157 64 3,332 18.............................. 68,444 87,979 23,678 22,815 14,690 8,125 5,987 4.262 1,725 8,414 309 157 62 4,949 25.............................. 67,318 86,522 23,002 22,719 14,817 7,902 5,880 4,210 1,670 8,407 317 151 55 3,792 Outside New York City 1975 Aug. 6.............................. 209,831 286,226 78,906 52,234 35,498 16,736 25,777 12,968 12,809 58,497 760 13.......................... 208,843285,628 79,645 52,617 35,742 16,875 26,104 13,012 13,092 58,446 1,191 20.............................. 208,763 285,792 78,753 52,268 35,665 16,603 25,556 13,076 12,480 58,401 1,031 2 7 208,442285,582 79,662 52,554 35,745 16,809 25,510 13,178 12,332 58,326 1,081 1976 July 7.............................. 211,010292,847 80,636 45,421 30,592 14,829 21,933 10,907 11,026 67,497 2,805 696 1,059 14.............................. 210,910293,452 83,178 45,293 30,513 14,780 22,022 10,970 11,052 67,517 2,812 678 816 21.............................. 210,498292,720 81,139 44,581 30,114 14,467 22,009 11,000 11,009 67,615 2,853 681 919 2 8 210,080292,211 81,107 44,168 29,812 14,356 22,205 11,136 11,069 67,627 2,899 670 826 Aug. 4.............................. 210,674293,517 80,248 43,573 29,459 14,114 21,977 11,031 10,946 67,781 2,943 699 872 11.............................. 212,445 295,733 81,147 43,478 29,299 14,179 22.005 11,044 10,961 67,837 2,992 734 879 18.............................. 211,104294,671 80,088 43,142 29,081 14,061 22.006 11,135 10,871 67,767 3,026 798 814 25.............................. 210,962294,788 79,901 43,319 29,055 14,264 22,259 11,230 11,029 67,788 3,070 827 938 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 commerfcial 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. ^Other than commercial banks. ^Domestic and foreign com­ 4 Includes short-term notes and bills. mercial banks, and official international organizations. 5 Federal agencies only. * Includes corporate stocks. Note.—Effective Mar. 24, 1976, in the city of Chicago and Mar. 31, 7 Includes U.S. Govt, and foreign bank deposits, not shown separately. 1976, in the San Francisco District reclassification of loans resulted in the 8 Includes securities sold under agreements to repurchase. following major revisions: commercial and industrial, —$1,168 million; 9 Includes minority interest in consolidated subsidiaries. Beginning other nonbank financial institutions, +$185 million; real estate, +$783 Mar. 31, 1976, also includes deferred tax portion of reserves for loans. million; other loans, +$200 million. These reclassifications are not 10 Includes reserves for securities. Beginning Mar. 31, 1976, also reflected for earlier dates. includes contingency portion of reserves for loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 a 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 1976 1975 Industry Aug. Aug. Aug. Aug. July 1st 2nd 25 18 11 4 28 Aug. July June II' I IV half' half Durable goods manufacturing: Primary metals.................................... 1,954 1,958 1,978 2,028 2,022 -68 -76 -7 73 -48 62 25 50 Machinery............................................ 4,749 4,778 4,778 4,787 4,871 -122 -164 -198 -428 -296 -781 -724 -1,668 Transportation equipment................ 2,415 2,471 2,532 2,522 2,569 -154 -108 30 -316 -52 -267 -368 -465 Other fabricated metal products... 1,698 1,716 1,720 1,707 1,710 -12 -34 -36 -142 -87 -473 -229 -750 Other durable goods.......................... 3,511 3,492 3,482 3,462 3,483 28 -129 101 106 53 -514 159 -688 Nondurable goods manufacturing: Food, liquor, and tobacco................ 3,507 3,480 3,401 3,355 3,402 105 40 322 91 -509 455 -418 468 Textiles, apparel, and leather........... 3,534 3,528 3,514 3,485 3,401 133 80 172 235 395 -477 630 -532 Petroleum refining.............................. 2,123 2,199 2,198 2,228 2,238 -115 -65 -69 79 -138 -234 -59 -116 Chemicals and rubber....................... 2,533 2,528 2,527 2,539 2,549 -16 66 -24 -168 -40 -178 -208 -431 Other nondurable goods................... 1,903 1,898 1,948 1,939 1,929 -26 12 38 19 90 -268 109 -415 Mining, including crude petroleum and natural gas................................ 6,658 6,675 6,685 6,659 6,568 90 -165 123 332 448 789 780 1,065 Trade: Commodity dealers................... 1,432 1,437 1,414 1,466 1,519 -87 -249 101 121 65 340 186 All Other wholesale.......................... 5,947 5,941 5,981 6,008 5,956 -9 111 74 49 357 -103 406 -181 Retail............................................ 6,245 6,257 6,283 6,324 6,196 49 -123 203 394 133 -208 527 -517 Transportation......................................... 5,289 5,311 5,293 5,284 5,357 -68 -327 -110 -153 -231 127 -384 3 Communication....................................... 1,576 1,622 1,658 1,654 1,619 -43 -135 38 59 -289 -49 -230 -158 Other public utilities.............................. 5,820 5,848 5,981 6,114 6,188 -368 -37 162 113 -885 33 -772 -198 Construction............................................ 4,275 4,253 4,252 4,238 4,234 41 -8 7 -177 -706 -381 -883 -436 Services...................................................... 10,384 10,355 10,381 10,415 10,404 -20 -178 -34 -306 69 285 -237 -15 All other domestic loans....................... 7,134 7,040 7,192 7,095 7,335 -201 355 -263 -857 -2,566 628 -3,423 643 Bankers acceptances............................... 2,875 2,892 2,766 2,826 2,652 223 -306 86 -337 r —1,650 2,855 -1,987 2,685 Foreign commercial and industrial loans................................................... 5,775 5,735 5,685 5,428 5,443 332 -233 -37 306 82 222 388 757 Total classified loans.............................. 91,337 91,414 91,649 91,563 91,645 -308 -1,673 679 -907 ^—5,805 1,863 -6,712 -422 Comm, paper included in total clas­ sified loans1...................................... 342 373 -31 -95 112 24 7 153 31 197 Total commercial and industrial loans of large commercial banks........... 110,688 110,782 111,391 111,316 111,256 -568 -1,647 883 -151 ^—6,994 1,680 -7,751 -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 Aug. July June May Apr. Mar. Feb. Jan. Dec. 1st 25 28 30 26 28 31 25 28 31 II I IV III half Durable goods manufactur­ ing: 1,146 1,191 1,241 1,293 1,283 1,291 1,335 1,341 1,372 -50 -81 34 50 -131 Machinery............................. 2,748 2,901 3,029 3,088 3.055 3,144 3,072 3,117 3,313 -115 -169 -424 -240 -284 Transportation equipment. 1,357 1,399 1,505 1,488 1,632 1,691 1,643 1,686 1,615 -186 76 -78 -47 -110 Other fabricated metal products............................ 765 767 799 879 919 909 1,035 1,041 1,024 -110 -115 -244 46 -225 Other durable goods........... 1,758 1,763 1,815 1,843 1,871 1,793 1,838 1,874 1,823 22 -30 -189 -78 -8 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,463 1,444 1,403 1,334 1,366 1,391 1,536 1,547 1,578 12 -187 107 -43 -175 Textiles, apparel, and leather................................ 1,159 1,123 1,116 1,075 1,044 993 1,055 1,032 995 123 -2 -108 8 121 Petroleum refining............... 1,606 1,659 '1,707 1,781 1,785 1,685 1,886 1,859 1,831 '22 -146 -136 258 r —124 Chemicals and rubber........ 1,460 1,444 1,466 1,462 1,495 1,540 1,603 1,588 1,622 -74 -82 -43 -97 -156 Other nondurable goods.. 948 982 986 961 979 962 942 925 888 24 74 -168 -87 98 Mining, including crude pe­ troleum and natural gas. 5,144 5,125 r5,227 5,117 5,015 4,904 4,731 4,528 4,484 '323 420 637 113 '743 Trade: Commodity dealers.. 186 191 207 206 180 190 182 196 172 17 18 22 2 35 Other wholesale......... 1,340 1,308 1,308 1,355 1,312 1,344 1,279 1,290 1,276 -36 68 -43 -10 32 Retail............................ 2,080 2,061 r2,032 2,031 2,036 2,008 1,987 2,007 1,996 '24 12 -157 17 '36 3,941 4,032 '4,237 4,246 4,252 4,250 4,329 4,291 4,390 '-13 -140 -1 -34 ' — 153 948 937 r990 1,008 984 998 1,095 1,101 1,081 '-8 -83 -51 -1 '-91 3,689 3,895 3,908 3,811 3,770 3,898 3,940 3,995 3,979 10 -81 13 -79 -71 Construction............................ 1,716 1,690 1,744 1,755 1,876 1,915 2,141 2,258 2,181 -171 -266 -178 45 -437 Services...................................... 4,917 4,948 '5,097 5,240 5,317 5,368 5,147 5,038 5,135 ' —271 233 13 -18 '-38 All other domestic loans .... 2,356 2,415 '2,350 2,349 2,507 2,700 3,093 3,396 3,299 ' — 350 -599 55 -14 '-949 Foreign commercial and in­ dustrial loans................... 3,462 3,141 3,157 3,121 3,085 2,984 3,001 2,999 2,921 173 63 158 169 236 44,189 44,416 '45,324 '45,443 45,763 45,958 46,870 47,109 46,975 '-634 -1,017 -781 -40 '-1,651 i 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 □ SEPTEMBER 1976 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All insured commercial banks: 1970—Dec.......................................................................................... 17.3 92.7 53.6 1.3 10.3 175.1 1971—Dec......................................................................................... 18.5 98.4 58.6 1.3 10.7 187.5 1972 Dec......................................................................................... 18.9 109.9 65.4 1.5 12.3 208.0 1973—June....................................................................................... 18.6 106.6 67.3 2.0 11.8 206.3 Sept........................................................................................ 18.8 108.3 69.1 2.1 11.9 210.3 19.1 116.2 70.1 2.4 12.4 220.1 1974 Mar........................................................................................ 18.9 108.4 70.6 2.3 11.0 211.2 18.2 112.1 71.4 2.2 11.1 215.0 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 20.3 121.2 78.8 2.5 11.4 234.2 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—July......................................................................................... 15.0 65.3 29.8 2.2 6.5 118.7 Aug......................................................................................... 14.4 64.6 29.1 2.0 5.9 116.1 Sept......................................................................................... 14.7 65.5 29.6 2.1 6.2 118.1 Oct.......................................................................................... 15.1 66.7 29.0 2.2 6.3 119.3 15.4 68.1 29.4 2.2 6.4 121.6 Dec......................................................................................... 15.6 69.9 29.9 2.3 6.6 124.4 1976—Jan.......................................................................................... 15.2 68.0 30.3 2.2 6.7 122.4 Feb......................................................................................... 15.3 65.6 29.2 2.2 6.4 118.7 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....................................................................................... 15.7 67.8 26.4 2.2 6.1 118.2 June........................................................................................ 16.1 67.3 31.2 2.0 6.1 122.6 July*...................................................................................... 16.3 64.8 33.3 2.3 5.8 122.5 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 *............ 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 i Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—Hypothecated deposits, as shown in this table, are treated one reserve-requirement purposes has been based on size of bank (net demand way in monthly and weekly series for commercial banks and in another deposits of more than $400 million), as described in the Bulletin for way in call-date series. That is, they are excluded from “Time deposits” July 1972, p. 626. Categories shown here as “Other large” and “All other and “Loans” in the monthly (and year-end) series as shown on p. A-l 4; member” parallel the previous “Reserve City” (other than in New York from the figures for weekly reporting banks as shown on pp. A-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

SEPTEMBER 1976 a LOAN SALES BY BANKS; OPEN MARKET PAPER A25 LOANS SOLD OUTRIGHT BY LARGE COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To selected related institutions1 By type of loan Date Total Commercial Real All and estate other industrial 1976—May 5........................... 4,174 2,567 195 1,412 12........................... 4,346 2,727 193 1,426 19........................... 4,307 2,704 192 1,411 26........................... 4,356 2,707 205 1,444 June 2........................... 4,432 2,757 204 1,471 9........................... 4,424 2,767 205 1,452 16........................... 4,478 2,839 205 1,434 23........................... 4,442 2,810 205 1,427 30........................... 4,491 2,837 206 1,448 1 To bank’s own foreign branches, nonconsolidated non­ July r 7........................... 4,530 2,862 219 1,449 bank affiliates of the bank, the bank’s holding company (if 14........................... 4,518 2,826 212 1,480 not a bank), and nonconsolidated nonbank subsidiaries of 21........................... 4,549 2,825 207 1,517 the holding company. 28........................... 4,529 2,823 209 1,497 Note.—Series changed on Aug. 28,1974. For a comparison Aug. 4........................... 4,598 2,886 209 1,503 of the old and new data for that date, see p. 741 of the Oct. 11........................... 4,298 2,613 209 1,476 1974 Bulletin. Revised figures received since Oct. 1974 18........................... 4,103 2,538 211 1,354 that affect that comparison are shown in note 2 to this table 25........................... 3,990 2,508 213 1,269 in the Dec. 1974 Bulletin, p. A-27. COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial paper Dollar acceptances Financial Bank-related 5 Held by- Based on- End comnanies1 of Non­ period All finan­ Accepting banks F.R. Banks issuers cial Total Im- Ex­ Dealer- Di­ com­ Dealer- Di­ Others ports ports All placed2 rectly- panies4 placed rectly- For­ into from other placed 3 placed Total Own Bills Own eign United United bills bought acct. corr.6 States States 196 6 13,645 2,332 10,556 757 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 17,085 2,790 12,184 2,111 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 21,173 4,427 13,972 2,774 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 32,600 6,503 20,741 5,356 1,160 3,134 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970............ 33,071 5,514 20,424 7,133 352 1,997 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............ 32,126 5,297 20,582 6,247 524 1,449 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972............ 34,721 5,655 22,098 6,968 1,226 1,411 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973............. 41,073 5,487 27,204 8,382 1,938 2,943 8,892 2,837 2,318 519 68 581 5,406 2,273 3,499 3,120 1974............ 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-June.. 48,765 5,604 31,115 12,045 1,561 7,230 17,740 4,774 4,224 550 682 319 11,965 3,466 4,080 10,193 July.. 49,352 6,018 31,263 12,072 1,649 7,038 16,930 4,778 4,275 503 685 329 11,138 3,474 3,865 9,591 Aug.. 49,810 5,645 32,172 11,993 1,511 7,392 16,456 4,546 3,988 558 840 304 10,766 3,305 3,806 9,344 Sept.. 48,257 5,574 30,496 12,187 1,482 7,316 16,790 5,002 4,190 812 948 302 10,538 3,313 3,783 9,693 Oct... 50,394 6,360 32,308 11,726 1,634 7,114 17,304 5,213 4,288 924 1,047 284 10,760 3,467 3,947 9,890 Nov.. 49,512 6,389 32,003 11,120 1,715 6,974 17,875 6,497 5,684 813 727 279 10,372 3,545 3,888 10,443 Dec. . 47,690 6,239 31,276 10,175 1,762 6,892 18,727 7,333 5,899 1,435 1,126 293 9,975 3,726 4,001 11,000 1976-Jan... 48,858 6,072 31,305 11,481 1,657 6,918 18,677 6,294 5,367 927 1,230 248 10,904 3,891 3,906 10,880 Feb... 49,927 6,401 31,534 11,992 1,567 6,753 19,060 5,950 5,255 695 1,051 231 11,827 3,977 4,039 11,044 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 19,559 6,126 5,305 821 995 344 12,094 4,258 4,258 11,043 May.. '50,537 6,443 r31,866 *•12,228 1,724 5,974 *■19,681 *•6,175 *•5,397 778 875 440 12,147 *•4,267 *•4,304 11,110 June.. 50,011 6,075 31,198 12,738 1,710 6,297 19,782 6,171 5,378 793 1,027 427 12,157 4,384 4,308 11,091 1 Financial companies are institutions engaged primarily in activities 4 Nonfinancial companies include public utilities and firms engaged such as, but not limited to, commercial, savings, and mortgage banking; primarily in activities such as communications, construction, manufac­ sales, personal, and mortgage financing; factoring, finance leasing, and turing, mining, wholesale and retail trade, transportation, and services. other business lending; insurance underwriting; and other investment 5 Included in dealer- and directly-placed financial company columns. activities. Coverage of bank-related companies was expanded in Aug. 1974. Most 2 As reported by dealers; includes all financial company paper sold in of the increase resulting from this expanded coverage occurred in directlythe open market. placed paper. 3 As reported by financial companies that place their paper directly 6 Beginning November 1974, the Board of Governors terminated the with investors. System guarantee on acceptances purchased for foreign official accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 INTEREST RATES □ SEPTEMBER 1976 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Monthly average rate 974—Apr. 11 . . ;............... 10 1975—Jan. 9..................... ioy4 1975—July 18..................... 71/4 1975—July 7.15 19 . . 10% 15..................... 10 28................... 71/2 Aug. 7.66 25..................... Id/2 20..................... 9% Sept. 7.88 28..................... 91/2 Aug. 12..................... 7% Oct. 7.96 May 2..................... 103/4 Nov. 7.53 6..................... 11 Feb. 3..................... 91/4 Sept. 15..................... 8 Dec. 7.26 10..................... 111/4 10..................... 9 17. .. . m/2 18................. 8% Oct. 27..................... 7% 1976—Jan. 7.00 24..................... 81/2 Feb. 6.75 June 26. . 11% Nov. 5..................... 71/2 Mar. 6.75 Mar. 5..................... 81/4 Apr. 6.75 July 5..................... 12 10..................... 8 Dec. 2..................... 7% May 6.75 18..................... 7% June 7.20 Oct. 7..................... 11% 24..................... 71/2 1976—Jan. 12..................... 7 July 7.25 21..................... Hl/2 21..................... 6% Aug. 7.01 28..................... 11 1/4 May 20..................... 71/4 June 1..................... 7 Nov. 4..................... 11 June 9..................... 7 7...................... 7% 14...................... 10% 25..................... 101/2 Aug. 2..................... 7 RATES ON BUSINESS LOANS OF BANKS - Size of loan (in thousands of dollars) All sizes 1--9 10-99 100-499 500-999 1,000 and over Center 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 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

SEPTEMBER 1976 □ INTEREST RATES A27 MONEY MARKET RATES (Per cent per annum) U.S. Government securities5 Prime Finance commercial CO. Prime Fed­ Period paper1 paper bankers’ eral 3-month bills6 6-month bills6 9- to 12-month issues placed accept­ funds 3- to 5directly, ances, rate4 year 90-119 4 to 6 3 to 6 90 days3 Rate Market Rate Market 1-year issues 7 days months months2 on new yield on new yield bill (mar­ Other 7 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—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................ 543 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 5.14 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 July................ 5.54 5.67 5.53 5.50 5.31 5.278 5.23 5.597 5.53 5.82 6.21 7.24 Aug................ 5.35 5.47 5.46 5.32 5.29 5.153 5.14 5.416 5.40 5.64 5.99 7.04 Week ending— 1976—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 5.78 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 10........ 5.72 5.81 5.63 5.66 5.37 5.412 5.34 5.768 5.61 5.90 6.35 7.30 17........ 5.53 5.65 5.53 5.48 5.27 5.190 5.15 5.430 5.44 5.72 6.13 7.18 24........ 5.48 5.65 5.50 5.47 5.30 5.226 5.23 5.536 5.54 5.84 6.17 7.26 31........ 5.38 5.50 5.50 5.34 5.28 5.194 5.17 5.497 5.45 5.74 6.12 7.21 Aug. 7........ 5.38 5.50 5.50 5.34 5.36 5.151 5.16 5.473 5.46 5.72 6.11 7.12 14 5.38 5.50 5.50 5.34 5.25 5.181 5.17 5.422 5.42 5.65 6.04 7.06 21 5.38 5.50 5.50 5.33 5.29 5.143 5.15 5.390 5.40 5.64 5.95 7.04 28........ 5.30 5.43 5.40 5.30 5.28 5.138 5.11 5.380 5.35 5.59 5.92 6.98 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. ? 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 □ SEPTEMBER 1976 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total1 ( S t l e t o a r n m te g ) s ­ Total1 Aaa Baa New ce R n e t ­ ly Aaa Baa 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 Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 1970..................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.46 1971..................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.41 1972..................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 5.50 1973 .................... 6.30 5.22 4.99 5.49 7.74 7.75 7.80 7.44 8.24 7.60 8.12 7.83 7.23 3.06 7.12 1974..................... 6.99 6.19 5.89 6.53 9.33 9.34 8.98 8.57 9.50 8.78 8.98 9.27 8.23 4.47 11.60 1975 ..................... 6.98 7.05 6.42 7.62 9.40 9.41 9.46 8.83 10.39 9.25 9.39 9.88 8.38 4.31 9.03 1975—Aug.......... 7.06 7.12 6.40 7.71 9.46 9.49 9.51 8.95 10.35 9.29 9.41 9.93 8.41 4.36 Sept.......... 7.29 7.40 6.70 7.96 9.68 9.57 9.55 8.95 10.38 9.35 9.42 9.98 8.56 4.39 9.12 Oct........... 7.29 7.40 6.67 8.01 9.45 9.43 9.51 8.86 10.37 9.32 9.40 9.94 8.58 4.22 Nov.......... 7.21 7.41 6.64 8.08 9.20 9.26 9.44 8.78 10.33 9.27 9.36 9.83 8.50 4.07 Dec.......... 7.17 7.29 6.50 7.96 9.36 9.21 9.45 8.79 10.35 9.26 9.37 9.87 8.57 4.14 8.61 1976—Jan....... 6.94 7.08 6.22 7.81 8.70 8.79 9.33 8.60 10.24 9.16 9.32 9.68 8.16 3.80 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 8.88 9.36 8.10 3.75 July.......... 6.85 6.71 5.71 7.64 8.63 8.63 8.97 8.56 9.63 8.90 8.81 9.26 8.08 3.64 Aug.......... 6.79 6.53 5.51 7.48 8.52 8.50 8.85 8.45 9.49 8.79 8.75 9.07 7.99 3.74 Week ending— 1976—July 3.. 6.90 6.79 5.81 7.72 8.72 8.67 9.03 8.63 9.70 8.95 8.82 9.35 8.09 3.67 10.. 6.86 6.74 5.75 7.66 8.58 8.57 8.99 8.57 9.68 8.92 8.79 9.32 8.09 3.62 17.. 6.83 6.71 5,70 7.64 8.53 8.55 8.96 8.53 9.63 8.90 8.79 9.26 8.10 3.57 24.. 6.86 6.69 5.67 7.62 8.66 8.68 8.95 8.55 9.60 8.88 8.81 9.24 8.07 3.64 31.. 6.85 6.64 5.62 7.58 8.72 8.69 8.95 8.55 9.61 8.88 8.82 9.21 8.05 3.73 Aug. 7.. 6.80 6.57 5.54 7.52 8.60 8.60 8.92 8.51 9.58 8.85 8.80 9.16 8.01 3.70 14.. 6.75 6.53 5.50 7.47 8.49 8.49 8.87 8.48 9.50 8.82 8.75 9.10 8.02 3.73 21.. 6.82 6.53 5.52 7.47 8.46 8.82 8.42 9.45 8.77 8.75 9.02 8.01 3.71 28.. 6.79 6.50 5.49 7.44 ”8.'47' 8.44 8.80 8.42 9.44 8.74 8.71 9.02 7.90 3.81 Number of 16 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ govt., general obligations only, based on Thurs. figures, from Moody’s arately. Because of a limited number of suitable issues, the number Investors Service. (3) Corporate, rates for “New issue” and “Recently of corporate bonds in some groups has varied somewhat. As of Dec. offered” Aaa utility bonds, weekly averages compiled by the Board of 23, 1967, there is no longer an Aaa-rated railroad bond series. Governors of the Federal Reserve System; and rates for seasoned issues, 2 Number of issues varies over time; figures shown reflect most recent averages of daily figures from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures. Earnings/price ratios as of end of period. Note.—Annual yields are averages of weekly, monthly, or quarterly Preferred stock ratio based on 8 median yields for a sample of 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 corporate series. Effective July 1976, Standard 1 Margin credit includes all credit extended to purchase or carry stocks and Poor added a new financial group, including banks and insurance or related equity instruments and secured at least in part Iby stock (Dec. companies, to the index. Stocks in this revised group are 400 industrials 1970 Bulletin, p. 920). Credit extended by brokers is end-of-month data (formerly 425), 20 transportation (formerly 15 rail), 40 public utility for member firms of the New York Stock Exchange. June data for banks (formerly 60), and 40 financial. are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which ac­ Note.—Annual data are averages of daily or weekly figures. Monthly counted for 60 per cent of security credit outstanding at banks on June 30. and weekly data are averages of daily figures unless otherwise noted and are 1971. computed as follows: U.S. Govt, bonds, derived from average market 2 In addition to assigning a current loan value to margin stock generally, yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year Regulations T -and U permit special loan values for convertible bonds and bond. Municipal and corporate bonds, derived from average yields as stock acquired through exercise of subscription rights. computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- 3 Nonmargin stocks are those not listed on a national securities exchange year bond; Wed. closing prices. Common stocks, derived from com­ and not included on the Federal Reserve System’s list of over the counter ponent common stock prices. Average daily volume of trading, presently margin stocks. At banks, loans to purchase or carry nonmargin stocks are conducted 5 days per week for 6 hours per day. unregulated; at brokers, such stocks have no loan value. 4 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 a SECURITY MARKETS A29 SECURITY PRICES Common stock prices Volume of trading in Bond prices New York Stock Exchange Amer­ stocks (per cent of par) ican (thousands Stock of shares) Period Standard and Poor’s index New York Stock Exchange index Ex­ (1941-43= 10) (Dec. 31, 1965=50) change total index U.S. State Cor­ Trans­ Trans- (Aug. Govt. and po­ Total Indus­ porta­ Public Fi­ Total Indus­ por- Utility Fi­ 31, NYSE AMEX (long­ local rate trial tion utility nance trial ta- nance 1973= term) AAA tion 100) 197 0 60.52 72.3 61.6 83.22 91.29 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 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 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 53.47 57.42 63.08 37.74 37.69 70.12 103.80 16.374 3,003 197 4 57.45 76.3 58.8 82.85 92.91 38.91 43.84 48.08 31.89 29.82 49.67 79.97 13,883 1,908 197 5 57.44 68.9 56.2 85.17 96.15 41.21 45.73 51.88 30.73 31.45 46.62 83.15 18,568 2,150 1975—Aug.. .. 56.84 68.3 55.6 85.71 96.21 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 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 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 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 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 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 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 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 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 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 45.61 54.23 60.70 40.41 35.16 51.82 103.57 18,965 2,177 July.... 58.38 71.1 57.1 104.20 117.01 14.94 47.48 11.83 55.70 62.10 42.12 36.49 54.06 105.24 18,977 2,280 Aug....... 58.88 74.1 57.9 103.29 115.63 14.47 48.81 11.97 55.06 61.09 40.63 37.56 54.22 102.79 15,758 1,605 Week ending— 1976—Aug. 7 58.82 73.7 57.8 103.79 116.20 14.82 48.36 11.99 55.46 61.64 41.31 37.48 54.39 103.41 13.930 1,700 14 59.15 74.3 57.7 104.25 116.70 14.77 48.92 12.02 55.69 61.46 41 .12 37.73 54.79 103.80 13.930 1,640 21 58.67 74.3 57.9 102.37 114.53 14.39 49.17 12.23 54.17 61.47 39.93 37.65 53.92 101.79 14,920 1,600 28 58.87 74.3 58.3 101.48 113.58 14.04 48.71 11.73 54.23 59.97 39.73 37.41 52.94 101.43 12,120 1,510 For notes see opposite page. STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Free credit balances at brokers 4 End of period By source By type Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 975—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 June...................................... 8,276 7,248 1,028 7,080 976 166 33 2 19 2,368 540 1,680 July....................................... 8,417 7,519 898 7,340 854 176 28 3 16 2,317 530 1,635 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 STOCK MARKET CREDIT; SAVINGS INSTITUTIONS a SEPTEMBER 1976 EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil­ End of period credit balance E pe n r d i o o d f l d io o o n f l ­ s 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—July........................ 45.6 41.1 13.1 7,772 1975—July.. 5,300 6.0 8.3 13.9 23.6 30.4 17.9 43.5 40.6 16.0 7,494 Aug.. 5,220 5.5 6.8 11.3 20.7 31.0 24.7 45.3 38.9 15.8 7,515 Sept.. 5,250 5.1 7.3 10.6 19.6 31.0 26.5 44.4 40.1 15.5 7,362 Oct... 5,300 5.5 6.7 11.2 21.8 29.7 25.2 45.3 40.2 14.5 7,425 Nov.. 5,370 5.2 6.7 12.2 23.2 28.6 24.0 43.8 40.8 15.4 7,290 Dec.. 5,390 5.3 6.9 11.6 22.3 28.8 25.0 1976—Jan.......................... 45.8 44.0 10.3 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 June....................... 40.6 49.0 10.4 8,150 June. 7,080 6.3 7.7 14.4 32.2 25.4 14.1 July........................ 40.5 48.7 10.8 8,300 July.. 7,340 6.1 8.0 13.0 27.7 31 .1 14.0 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 Total Other General classified by maturity End of period M ga o g r e t­ Other G U o . v S t . . S g 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 p e r o 1 ­ Cash O as t s h e e ts r l g r i e e a a t s n b i n e e e i r d s l r v i a ­ e l De it p s os­ lia ti b e i s li­ r c e o s a u e c n r ­ v ts e (in months) 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—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... 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 May... 78,286 5,103 5,660 2,318 31,179 1,539 3,385 127,470 115,521 3,296 8,654 1,237 419 290 480 2,426 Junep.. 78,735 5,158 5,578 2,357 31,537 1,532 3,425 128,324 116,774 2,847 8,703 1,174 438 215 575 2,402 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

SEPTEMBER 1976 □ SAVINGS INSTITUTIONS A31 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other End of period assets S U t n at i e te s d i Sta lo te c a a l nd Foreign2 Total Bonds Stocks gages estate loans assets 197 1 222,102 r10,373 r3,828 3,363 3,182 *•100,432 *•79,825 20,607 75,496 6,904 17,065 11,832 197 2 239,730 r10,637 r3,827 3,367 3,443 *•113,720 *■86,875 26,845 76,948 7,295 18,003 13,127 197 3 252,436 10,519 r3,444 3,412 3,663 *■118,599 *-92,680 25.919 81,369 7,693 20,199 14,057 197 4 263,349 rl 0,900 *•3,372 3,667 3,861 *•119,637 *■97,717 21.920 86,234 8,331 22,862 15,385 1975 *•........... 289.304 13.758 4.736 4.508 4.514 135.317 107.256 28,061 89.167 9,621 24.467 16.974 1975—Juner 278,649 11,633 3,712 3,783 4,138 130,732 102,084 28,648 87,967 8,978 23,708 15,631 Julyr. 279,550 11,894 3,788 3,934 4,172 131,130 103,586 27,544 88,060 9,048 23,892 15,589 Aug.r 280,700 12,140 3,819 4,106 4,215 131,473 104,434 27,039 88,208 9,104 23,963 15,812 Sept.r 282,065 12,253 3,821 4,165 4,267 132,037 105,440 26,597 88,331 9,197 24,099 16,148 Oct.r. 285,015 12,858 4,342 4,193 4,323 133,865 106,250 27,615 88,481 9,342 24,242 16,227 Nov.r 287,122 13,243 4,613 4,260 4,370 134,961 107,040 27.921 88,657 9,450 24,343 16,468 Dec.r 289.304 13.758 4.736 4.508 4.514 135.317 107.256 28,061 89.167 9,621 24.467 16.974 1976—Jan.r. 293,870 14,036 5,102 4,652 4,282 140.309 109,474 30,835 89,395 9,661 24,498 15,971 Feb.' 296,479 14,816 5,132 4,790 4,894 141,658 110,647 31,011 89,543 9,726 24,633 16,103 Mar.r 298,625 15,701 5,093 5,016 5,592 142.310 110,816 31,494 89,474 9,798 24,754 16,588 Apr.. 299,983 15,917 5,198 5,100 5,619 143,197 111,757 31,440 89,489 9,852 24,873 16,655 May. 301,754 15,975 5,141 5,146 5,688 144,496 113,087 31,409 89,529 9,909 24,978 16,867 June* 304,728 15,947 4,863 5,196 5,888 147,193 114,583 32,610 89,691 10,004 25,142 16,751 1 Direct and guaranteed obligations. Excludes Federal agency securities, Note.—Estimates of the American Council of Life Insurance for all which are included here with business securities. life insurance companies in the United States. Figures are annual statement 2 Issues of foreign governments and their subdivisions and bonds of values, with bonds carried on an amortized basis and stocks at market the International Bank for Reconstruction and Development. value. 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 n i m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other l a ia s T b s o e il t t i a s ti — l e s S c a a v p i i n ta g l s w N or e t t h2 m ro B o w n or e e ­ d y3 p L ro o i c a n e n s s s Other ou m a p t t s i e t t e m r a n i n o d e d d n i o 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—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 19,216 4,995 9,328 12,673 Sept......................... 270,600 30,786 27,745 329,131 277,201 19,414 20,031 5,128 7,357 12,585 Oct........................... 273,596 31,652 28,145 333,393 279,465 19,663 20,306 5,207 8,752 11,748 Nov.......................... 275,919 32,498 28,610 337,027 281,711 19,919 20,413 5,164 9,820 11,365 Dec.......................... 278,693 30,900 28,802 338,395 286,042 19,776 20,709 5,187 6,680 10,675 1976—Jan........................... 280,071 34,271 29,716 344,058 291,418 19,948 19,630 5,051 8,011 11,111 Feb.......................... 282,487 36,128 30,251 348,866 295,364 20,162 18,746 5,134 9,460 12,878 Mar......................... 286,556 36,722 30,462 353,740 302,436 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 May......................... 294,759 37,005 31,268 363,032 308,284 20,688 17,670 6,156 10,234 16,620 June........................ 299,574 35,316 31* ,708 366,598 313,326 20,761 18,251 6,464 7,796 16,639 July*....................... 303,812 36,038 32,096 371,946 316,508 20,994 18,455 6,644 9,345 16,343 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 □ SEPTEMBER 1976 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Borrowings from the public Less: Cash and monetary assets Other means Period Surplus Less: Invest­ of Receipts Outlays or Public ments by Govt, Trea­ financ­ deficit debt Agency accounts Less: Equals: sury ing, (-) securi­ securi­ Special Total operat­ Other net2 ties ties notes i ing Special Other balance issues Fiscal year: 197 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 -6,920 197 6 300,005 365,610 -65,605 87,244 -90 6,581 -2,239 82,813 7,246 550 -9,412 Half year: 1974—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 1976—Jan.-June 160,552 181,066 -20,513 43,784 -51 11,320 -1,053 33,466 6,380 1,530 -5,044 Month: 1975—July ' 20,056 31,108 -11,052 5,051 -23 -2,427 -346 7,800 -3,390 -1,368 -1,506 Aug.......... 23,584 30,634 -7,050 9,472 6 2,384 -94 7,189 -630 -263 -1,032 Sept.......... 28.615 29,044 -429 5,935 9 -2,151 -367 8,463 6,961 446 -627 Oct........... 19,316 32,425 -13,109 8,352 -5 -3,656 260 11,743 -203 -348 815 Nov......... 21,745 29,401 -7,656 4,800 -3 -749 -390 5,936 -3,844 392 -1,732 Dec.......... 25,995 31,792 -5,797 9,850 -24 1,860 -249 8,215 1,971 166 -281 1976—Ja..............n 25,634 30,725 -5,091 7,757 -2 -393 328 7,820 3,532 114 918 Feb........... 20,845 29,833 -8,987 9,465 5 1,062 -564 8,972 64 -125 -46 Mar.......... 20,431 29,054 -8,623 6,620 -6 -623 -83 7,320 -4,032 -288 -3,018 Apr.......... 33,348 32,476 872 1,483 -32 50 4 1,398 3,517 545 1,792 May......... 22,679 28,410 -5,731 8,699 -9 5,130 -549 4,109 -3,383 502 -1,259 June......... 37.615 30,567 7,048 9,760 -8 6,094 -189 3,847 6,682 782 -3,431 July.......... 22,660 33,906 -11,247 4,114 -139 1,645 -345 5,964 -4,784 -229 270 Selected balances Treasury operating balance Borrowing from the public. Memo: End of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 3 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S is p I G s e n u c o v e i v a s e l t s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e te c ss s ia : i l E T q o u t a a l l s: s c p p o G r o N r i n o v p o s v s a w o t . t — . r e - e 4 d Fiscal year: 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 37,086 197 2 2,344 7,634 139 10,117 427,260 10,894 89,536 24,023 825 323,770 41,814 197 3 4,038 8,433 106 12,576 458,142 11,109 101,248 24,133 825 343,045 51,325 197 4 2,919 6,152 88 9,159 475,060 12,012 114,921 25,273 825 346,053 65,411 197 5 5,773 1,475 343 7,591 533,188 10,943 123,033 24,192 (5) 396,906 76,092 197 6 11,972 2,856 7 14,835 620,432 10,853 129,614 21,952 479,719 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 78,842 Month: 1975—July.... 2,776 878 444 4,098 538,240 10,920 120,606 23,847 404,707 77,173 Aug----- 2,349 1,214 -141 3,423 547,711 10,926 122,990 23,752 411,895 76,659 Sept..., 8,074 2,162 529 10,765 553,647 10,935 120,839 23,385 420,358 77,026 Oct........ 8,517 1,251 559 10,327 561,999 10,931 117,183 23,645 432,102 78,016 Nov.... 4,919 1,558 9 6,485 566,799 10,928 116,434 23,255 438,037 78,451 D ec.., 7,286 1,159 7 8,452 576,649 10,904 118,294 23,006 446,253 78,842 1976—Ja..........n 10,077 1,899 7 11,982 584,405 10,902 117,901 23,333 454,072 79,355 Feb....... 10,350 1,682 7 12,039 584,405 10,902 117,901 23,333 463,045 78,359 Mar___ 7,145 864 7 8,016 600,490 10,901 118,340 22,686 470,365 78,712 Apr...., 9,808 1,723 7 11,537 601,973 10,870 118,390 22,690 471,763 80,039 May..., 6,746 1,407 7 8,159 610,672 10,861 123,520 22,140 475,872 77,665 June__ 11,972 2,856 7 14,835 620,432 10,853 129,614 21,952 479,719 79,325 July... 8,739 1,312 10,051 624,546 10,714 127,969 21,607 485,683 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

SEPTEMBER 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 contribution1 Un- Other taxes toms and re­ With­ tion with­ Re­ Net re­ Re­ empl. net Net gift ceipts3 held Cam­ held funds total ceipts funds insur. re­ total paign Pay­ Self- ceipts2 Fund roll empl. taxes Fiscal year: 197 3 232,225 98,093 27,01721,866 103,246 39,045 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 30,81223,952 118,952 41,744 3.125 62,878 3,008 6,837 4,051 76,780 16,844 3,334 5,035 5,369 197 5 280,997 122,071 34,296 34,013 122,! 45,747 5.125 71,789 3,417 6,770 4,46686,441 16,551 3,676 4,611 6,711 197 6 300,005 123,408 35,52827,367 131,60346,783 5,37476,391 3,51 8,054 4,75292,714 16,963 4,074 5,216 8,026 Half year: 1974—July-Dee. 139,607 61,378 7,098 1,01667,461 18,247 2,016 34,418 254 2,914 2,18739,774 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 2,27946,667 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 1976—Jan.-June 160,552 63,859 3327,87926,00465,767 27,973 2,63940,947 3,250 5,193 2,438 51,828 8,204 2,147 2,643 4,630 Month: 1975—Jul y r20,056 9,205 r909 498 9,615 1,838 471 5,309 444 r375 6,128 1,514 313 503 r615 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 38213,609 6,277 264 5,555 75 400 6,280 1,430 312 431 539 Oct.......... 19,316 9,983 589 -81 10,653 1,694 821 4,551 259 395 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 38012,811 1,329 349 489 528 June........ 37.615 11,249 5,275 49016,037 10,391 391 5,969 322 254 425 6,971 1,489 421 442 2,255 July......... 22,660 10,731 1,018 54911,201 1.885 372 5,937 723 408 7,068 1,510 389 454 524 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 ceipts4 serv. justice Fiscal year: 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 1976 365,610 90,216 4,462 4,197 1,994 11,674 17,239 5,023 17,678 160,497 18,444 35,500 6,277 7,114 -14,704 TQ 5,6 102,100 26,000 2,000 1,200 900 3,900 5,300 1,700 4,900 42,100 4,400 9,500 1,800 2,000 -3,600 19775 400,000 101,600 7,100 4,500 1,800 15,100 16,400 6,000 18,400 172,700 17,800 40,200 6,900 7,400 -16,800 Month: 1975--July r........ 31,108 7,250 526 450 193 898 2,264 351 1,188 13,156 1,384 2,637 258 1,648 -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 29,401 7,533 419 405 196 786 1,203 315 1,653 12,612 1,624 2,996 531 15 -887 Dec........... 31,792 7,981 290 409 175 814 1,994 433 1,515 13,721 1,704 2,820 1,154 1 -1,221 1976--Jan............ 30,725 6,915 351 336 228 718 1,819 421 1,478 13,714 1,626 2,813 121 1,627 -1,441 Feb........... 29,833 6,120 320 413 315 1,833 900 421 1,530 13,360 1,696 3,143 570 53 -841 Mar.......... 29,054 7,752 320 379 44 935 -672 270 1,809 14,382 1,659 3,407 567 16 -1,814 Apr........... 32,476 7,994 249 360 -51 984 1,610 464 1,606 13,679 1,652 3,356 420 1,605 -1,452 May......... 28,410 7,136 292 348 270 924 466 448 1,258 13,229 1,555 3,220 617 96 -1,449 June......... 30,567 8,134 1,077 371 -181 929 1,238 528 1,738 13,501 1,248 2,652 668 32 -1,368 July.......... 33,906 7,462 902 403 99 1,313 2,056 450 1,348 14,066 1,367 3,298 502 1,776 -1,136 1 Old-age, disability, and hospital insurance, and Railroad Retirement civilian agency pay raises totaling $800 million for fiscal year 1977, and accounts. therefore do not add to totals. 2 Supplementary medical insurance premiums and Federal employee 6 Effective in calendar year 1976, the fiscal year for the U.S. Govt, is retirement contributions. being changed from July 1-June 30 to Oct. 1-Sept. 30. The period July 1- 3 Deposits of earnings by F. R. Banks and other miscellaneous receipts. Sept. 30 of 1976, data for which are shown separately from fiscal year 4 Consists of interest received by trust funds, rents and royalties on the 1976 and fiscal year 1977 totals, will be a transition quarter. Outer Continental Shelf, and Govt, contributions for employee retirement. 5 Estimates presented in Mid-session Review of the 1977 Budget, July Note.—Half years may not add to fiscal year totals due to revisions in 16, 1976. Figures for outlay categories exclude special allowances for 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 □ SEPTEMBER 1976 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues (interest-bearing) End of period p d T g u e r o b b o t l s t a i s c l i Total Total Bills Ma C c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v o ib e o n l r n e d t­ ­ s Total N 3 on F i m s o s a u r r e e k i s g e t n 4 a bl S e b a o a v n n in d d g s s i S s p su e e c s ia l 5 notes 1968—Dec.. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec.. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec.. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec.. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Dec.. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Dec.. 469.9 360.7 270.2 107.8 124.6 37.8 2.3 88.2 26.0 60.8 107.1 1974—Dec.. 492.7 373.4 282.9 119.7 129.8 33.4 2.3 88.2 22.8 63.8 118.2 1975—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 38.7 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 July. 624.5 495.5 397.7 161 .4 197.2 39.1 2.3 95.5 21.4 70.8 128.1 Aug.. 633.3 502.5 404.3 161.4 203.0 39.9 2.3 95.9 21.0 71.5 129.8 1 Includes non-interest-bearing debt (of which $613 million on August 31, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1976, was not subject to statutory debt limitation). Treasury foreign series and foreign-currency-series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, Rural Electrification Administration bonds, State and local govern­ Note.—Based on Monthly Statement of the Public Debt of the United ment bonds, and Treasury deposit funds. States, published by U.S. Treasury. See also second paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by— Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s t i . t e . s B F a . n R k . s Total m C b e a o r n m c k ia ­ s l M s b a a v u n i t n u k g s a s l p I c n a 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 . Sav I in n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t i s h s e c e s . 2 r ­ funds bonds securities 1968—Dec................. 358.0 76.6 52.9 228.5 66.0 3.8 8.4 14.2 24.9 51.9 23.3 14.3 21.9 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 3.1 7.6 10.4 27.2 51.8 29.0 11.2 25.0 1970—Dec.................. 389.2 97.1 62.1 229.9 62.7 3.1 7.4 7.3 27.8 52.1 29.1 20.6 19.9 1971—Dec.................. 424.1 106.0 70.2 247.9 65.3 3.1 7.0 11.4 25.4 54.4 18.8 46.9 15.6 1972—Dec................. 449.3 116.9 69.9 262.5 67.7 3.4 6.6 9.8 28.9 57.7 16.2 55.3 17.0 1973—Dec................. 469.9 129.6 78.5 261.7 60.3 2.9 6.4 10.9 29.2 60.3 16.9 55.6 19.3 1974—Dec................. 492.7 141.2 80.5 271.0 55.6 2.5 6.1 11.0 29.2 63.4 21.5 58.4 23.2 1975—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.................. 602.0 139.1 91.8 371.0 92.2 5.1 10.2 23.8 37.7 68.8 24.4 70.2 38.6 May................ 610.7 143.7 90.5 376.4 92.0 5.3 10.3 26.0 37.6 69.2 24.5 71.0 40.5 June*.............. 620.4 149.6 94.4 376.4 92.3 5.1 10.5 25.0 39.5 69.6 24.5 69.8 40.1 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

SEPTEMBER 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—May 31............................................................. 388,021 205,431 161,840 43,591 121 ,112 35,573 14,025 11,881 392,581 204,167 161,198 42,969 127,017 35,561 13,979 11,857 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—May 31..................................................... 18,562 2,528 442 2,086 6,582 3,039 4,298 2,115 June 30..................................................... 18,354 2,402 418 1,984 6,500 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—May 31..................................................... 90,530 49,439 38,722 10,717 28,287 8,198 1,556 3,050 94,446 51,469 40,833 10,636 29,939 8,353 1,595 3,090 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—May 31..................................................... 278,929 153,464 122,626 30,838 86,243 24,336 8,171 6,716 June 30.................................................... 279,781 150,296 119,947 30,349 90,578 24,169 8,086 6,652 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—May 31............................................ 68,962 28,163 16,601 11,562 35,359 4,647 509 283 June 30............................................ 69,162 28,177 16,749 11,428 35,909 4,324 494 258 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—May 31............................................ 4,001 1,000 477 523 2,119 540 213 129 3,885 953 410 543 2,114 546 197 74 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—May 31............................................ 8,551 1,582 1,095 487 3,393 1,955 1,133 488 8,670 1,483 961 522 3,502 2,020 1,134 530 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—May 31............................................ 13,610 11,068 9,411 1,657 2,327 127 57 33 June 30............................................ 13,025 10,467 8,804 1,663 2,285 189 54 31 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—May 31............................................ 4,388 1,895 1,362 533 2,211 178 83 21 June 30............................................ 4,318 1,767 1,224 543 2,274 177 81 20 State and local governments: 1973—Dec. 31............................................ 9,829 5,845 4,483 1,362 1,870 778 1,003 332 1974—Dec. 31............................................ 7,864 4,121 3,319 802 1,796 815 800 332 1975—Dec. 31............................................ 9,285 5,288 4,566 722 1,761 782 896 558 1976—May 31............................................ 14,868 10,425 9,616 809 2,111 879 804 649 13,174 8,339 7,460 879 2,271 971 802 790 All others: 1973—Dec. 31............................................ 101,261 64,606 55,493 9,113 22,076 6,372 5,189 3,023 1974—Dec. 31............................................. 118,253 77,210 69,330 7,880 25,760 6,664 5,479 3,141 1975—Dec. 31............................................ 159,154 103,889 88,797 15,092 35,894 9,405 5,546 4,420 1976—May 31............................................ 164,550 99,332 84,115 15,217 38,723 16,009 5,373 5,114 June 30............................................ 167,548 99,110 84,338 14,772 42,223 15,943 5,325 4,948 Note.—Direct public issues only. Based on Treasury Survey of banks, and 729 insurance companies combined, each about 90 per cent; Ownership. (2) 452 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) 5,518 commercial banks, 470 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 U.S. GOVERNMENT SECURITIES o SEPTEMBER 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—July................................. 4,675 3,301 1,131 172 71 669 1,294 1,100 1,613 778 Aug................................. 5,183 3,375 1,340 333 134 742 1,405 1,185 1,851 845 Sept................................. 5,566 4,032 1,315 128 91 931 1,405 1,198 2,033 787 Oct.................................. 8,714 5,929 2,332 309 144 1,271 2,675 1,839 2,929 1,250 Nov................................. 7,594 5,519 1,353 534 189 1,070 2,176 1,875 2,474 1,217 Dec.................................. 7,586 5,919 1,270 278 120 1,190 2,217 1,977 2,202 1,059 1976—Jan................................... 9,509 7,049 1,765 569 126 1,265 3,118 2,192 2,935 1,417 Feb.................................. 8,329 5,863 1,553 755 158 951 2,389 2,196 2,793 1,163 Mar................................. 9,044 6,763 1,807 358 116 1,308 2,777 2,276 2,683 1,185 Apr.................................. 10,293 7,667 2,186 306 134 1,341 3,154 2,426 3,372 1,665 May................................ 8,557 6,002 1,593 700 263 952 2,907 2,128 2,571 1,131 8,582 6,415 1,616 426 126 1,312 2,543 1,983 2,743 1,118 July................................. 9,663 6,846 1,771 946 99 1,356 3,230 2,078 2,999 1,371 Week ending— 1976—July 7......................... 9,421 6,914 1,136 1,281 90 1,430 2,795 2,099 3,099 1,253 14......................... 10,692 7,271 2,022 1,260 139 1,660 3,784 2,322 2,926 1,808 21......................... 8,030 5,670 1,488 784 88 1,175 2,756 1,545 2,554 1,460 28......................... 10,411 7,730 2,078 524 80 1,350 3,499 2,239 3,322 1,096 Aug. 4......................... 9,175 5,972 2,235 856 113 1,041 3,004 2,035 3,096 946 11......................... 10,757 5,581 2,208 2,522 446 1,478 3,106 2,454 3,719 1,432 18......................... 11,018 6,034 2,754 1,777 453 1,488 3,289 2,557 3,684 1,499 25......................... 11,111 7,066 2,750 1,003 293 1,370 3,542 2,409 3,791 1,949 1 Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a i t e l u s l ri­ W y i e 1 th ar 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 c r t i y . ­ Period sou A r l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io r n p s o 1 ra­ o A th l e l r 1975—Jul y 5,736 4,978 775 47 -64 626 1975—July, , 6,594 1,365 1,435 92!? 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 Oct 6,940 1,658 1,792 817 2,673 Nov......... 6,752 5,011 640 594 506 953 Nov., 7,215 1,958 1,393 991 2,873 Dec.......... 6,061 5,274 322 218 247 982 Dec.. 7,107 2,001 1,304 1,086 2,716 1976—Ja.............n 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 62 183 May. 6,089 1,346 1,026 975 2,742 June........ 5,895 5,489 251 144 11 335 June. 7,326 1,819 1,494 1,258 2,756 July......... 7,118 6,370 254 466 29 568 July 7,772 1,496 1,522 1,569 3,185 Week ending— Week ending— 1976—June 5,827 5,853 -28 16 -14 61 1976—June 2... 6,351 1,404 974 1,390 2,583 6,040 5,569 391 74 5 164 9... 7,251 1,747 1,574 1,333 2,597 6,531 6,146 265 97 24 315 16... 9,344 3,199 2,049 1,404 2,692 5,306 4,904 277 112 14 451 23... 6,953 1,455 1,370 1,220 2,908 5,669 5,115 192 350 11 520 30... 5,887 826 1,050 1,037 2,973 July 6,971 5,915 75 975 6 481 July 7... 6,614 1,276 1,170 1,170 2,998 , 7,014 6,184 163 609 58 517 14... 7,852 1,947 1,802 1,577 2,526 6,800 6,304 186 272 38 703 21... 8,280 1,572 1,748 1,494 3,464 , 7,626 6,935 461 209 21 558 28... 7,870 1,263 1,335 1,807 3,466 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

SEPTEMBER 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 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) 197 0 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 197 1 7,936 2,520 142 7,139 1,789 1,618 17.791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 197 2 7,979 2,225 129 6,971 1,548 1,756 19.791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 197 3 15,147 3,537 157 15,362 1,745 2,122 24,175 23,001 2,577 2,670 7,198 6,861 11,071 9,838 197 4 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—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 June. 15,274 3,739 118 17,136 2,949 2,839 32,090 29,863 4,413 3,733 11,188 9,998 17,979 15.834 July. , 15,403 5,626 103 17,101 2,907 2,848 32,075 29,845 4,420 3,757 11,417 10,531 18,202 16,340 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s, bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) are not guaranteed by the U.S. Govt. Loans are gross of valuation sheet items are capital accounts of all agencies, except for stock of FHLB’s. reserves and represent cost for FNMA and unpaid principal for other Bonds, debentures, and notes are valued at par. They include only publicly agencies. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAAl 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 tie ti s l 4 ­ H in o g u 5 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—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.. . 2,358 1,136 1,211 639 1,073 638 2,273 432 95 600 88 1,058 Feb— 2,722 1,332 1,375 446 1,449 810 2,622 360 135 574 130 1,423 Mar.. , 3,346 2,173 1,166 1,254 824 1,262 3,180 439 215 710 692 1,124 Apr.r. 2,441 1,211 1,219 457 1,225 747 2,318 356 26 672 367 897 May.. 3,490 1,866 1,611 824 1,400 1,256 3,303 710 384 956 70 1,183 June r. 3,028 1,689 1,324 590 1,097 1,331 2,807 414 75 745 113 1,460 July.. 2,581 1,164 1,408 307 1,219 1,048 2,363 264 19 963 160 957 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 □ SEPTEMBER 1976 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t .) e c 4 al Others Total Total P o u ff b e l r i e c d ly 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. 53,629 42,766 32,603 10,162 3,458 7,405 1975—May. 5,798 4,298 3,796 502 346 1,154 June. 5,596 4,594 3,943 651 230 772 July.. 4,327 3,673 2,658 1,014 198 456 Aug.. 2,399 1,836 1,356 480 129 434 Sept.. 2,836 1,999 1,414 585 308 529 Oct... 4,705 3,158 2,389 769 332 1,215 Nov.. 4,068 3,296 1,666 1,630 444 328 Dec.. 4,316 3,519 1,761 1,758 462 335 1976--Jan.r. 3,373 2,804 2,189 614 139 431 Feb.r. 3,827 2,900 2,127 773 173 754 Mar.r 6,632 4,577 3,238 1,347 443 1,604 Apr.r, 3,482 2,961 2,350 611 58 463 May.. 4,124 2,934 1,959 975 291 899 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 st n a c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 197 2 4,560 1,833 2,526 2,786 1,258 148 6,349 4,966 3,709 1,126 7,728 3,242 197 3 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 6,218 562 197 5 17,006 1,670 2,751 1,470 3,430 1 9,658 6,235 3,464 1,002 6,459 488 1975—May. 2,266 384 242 141 415 845 704 153 260 379 10 June. 2,195 123 384 194 211 838 640 362 603 45 July. 1,056 64 229 227 338 715 324 254 16 1,081 22 Aug. 580 101 141 70 17 719 305 93 19 286 68 Sept. 512 107 57 37 154 723 541 249 48 304 105 Oct.. 810 142 335 152 626 571 676 373 555 443 23 Nov. 874 229 81 53 1,000 851 424 45 10 444 57 Dec.. 1,295 130 473 193 330 539 363 205 27 679 83 1976—Jan.r 1,025 39 330 87 299 662 435 16 472 9 Feb.’ 733 435 319 132 650 487 302 151 20 559 37 Mar. 1,840 405 221 84 323 747 1,411 577 1 876 146 Apr.1 507 60 630 115 329 329 312 448 718 35 May 1,176 484 199 136 118 643 505 10 790 63 * Gross proceeds are derived by multiplying principal amounts or s 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

SEPTEMBER 1976 □ SECURITY ISSUES A39 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers 1 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 197 2 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 9,064 197 4 39,334 9,935 29,399 31,554 6,255 25,098 7,980 3,678 4,302 197 5 53,255 10,991 42,263 40,468 8,583 31,886 12,787 2,408 10,377 1975— 1 15,211 2,088 13,123 12,759 1,587 11,172 2,452 501 1,951 I I 15,602 3,211 12,390 11,460 2,336 9,124 4,142 875 3,266 II I 9,079 2,576 6,503 6,654 2,111 4,543 2,425 465 1,960 I V 13,363 3,116 10,247 9,595 2,549 7,047 3,768 567 3,200 1976— 1 13,671 2,315 11,356 9,404 1,403 8,001 4,267 912 3,355 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate facturing and other 2 tation 3 utility cation and financial i Period Bonds Bonds Bonds Bonds Bonds Bonds and Stocks and Stocks and Stocks and Stocks and Stocks and Stocks notes notes notes notes notes notes 1972......................... 1,995 2,094 1,409 2,471 711 254 5,137 4,844 3,343 1,260 7,045 2,096 1973......................... 801 658 -109 1,411 1,044 -93 4,265 4,509 3,165 1,399 3,523 1,181 1974......................... 7,404 17 1,116 -135 341 -20 7,308 3,834 3,499 398 5,428 207 1975......................... 13,219 1,607 1,605 1,137 2,165 65 7,236 6,015 2,980 1,084 4,682 468 1975—1................... 5,134 262 373 77 1 1 2,653 1,569 1,269 24 1,742 18 II.................. 4,574 500 483 490 429 7 1,977 1,866 810 359 852 43 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 1976—1................... 2,966 838 203 149 985 5 1,820 2,174 498 47 1,530 203 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- Note.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on preceding page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares 4 at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales i Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1963................ 2,460 1,504 952 25,214 1,341 23,873 1975—July... 813 1,052 -239 42,896 3,591 39,305 1964................ 3,404 1,875 1,528 29,116 1,329 27,787 Aug... 753 788 -35 41,672 3,660 38,012 1965............... 4,359 1,962 2,395 35,220 1,803 33,417 Sept... 760 874 -114 40,234 3,664 36,570 Oct.... 914 995 -81 41,860 3,601 38,259 1966................ 4,671 2,005 2,665 34,829 2,971 31,858 Nov... 786 911 -125 42,460 3,733 38,727 1967................ 4,670 2,745 1,927 44,701 2,566 42,135 Dec... 1,040 1,093 -53 42,179 3,748 38,431 1968................ 6,820 3,841 2,979 52,677 3,187 49,490 1976—Jan.... 411 538 -47 46,529 3,287 43,242 1969................ 6,717 3,661 3,056 48,291 3,846 44,445 Feb... 262 577 -315 46,540 3,084 43,546 1970................ 4,624 2,987 1,637 47,618 3,649 43,969 Mar... 326 677 -351 46,866 2,881 43,985 1971................ 5,145 4,751 394 55,045 3,038 52,007 Apr... 305 620 -315 45,956 2,683 42,273 May.. 241 589 -348 45,122 2,769 42,353 1972................ 4,892 6,563 -1,671 59,831 3,035 56,796 June.. 321 599 -278 46,801 2,679 44,122 1973................ 4,358 5,651 -1,261 46,518 4,002 42,516 July... 281 596 -315 45,986 2,547 43,439 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 I1 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 □ SEPTEMBER 1976 SALES, REVENUE, PROFITS, AND DIVIDENDS OF LARGE MANUFACTURING CORPORATIONS (In millions of dollars) 1974 1975 1976 Industry 1973 1974' 1975' I II III IV r I II III IV r Ql Total (170 corps.) :► Sales.......................................... 442,351 564,724 586,813 126,812 143,077 145,054 149,781 138,322 145,872 147,986 154,633 159,291 Total revenue......................... 448,919 573,136 595,205 128,711 145,227 147,251 151,947 140,411 147,785 149,820 157,189 161,734 Profits before taxes............... 53,845 67,737 60,286 16,596 18,218 17,860 15,063 12,895 14,859 15,493 17,039 16,710 Profits after taxes................... 28,767 32,531 27,004 7,739 9,292 8,428 7,072 5,551 6,707 7,094 7,652 8,537 Memo: PAT unadj.i___ 28,798 32,720 27,775 7,627 9,222 8,497 7,374 5,667 6,596 7,046 8,466 8,558 Dividends................................ 11,516 12,421 12,442 2,912 2,928 3,073 3,508 3,128 3,032 3,072 3,210 3,183 Nondurable goods industries (86 corps.) ;2^. Sales.......................................... 210,216 309,033 323,136 68,782 77,193 80,543 82,515 77,297 78,656 82,361 84,822 86,987 Total revenue......................... 214,028 314,584 328,502 70,066 78,654 82,021 83,843 78,616 79,940 83,595 86,351 88,231 Profits before taxes............... 30,211 46,446 40,905 11,887 11,998 12,618 9,943 9,378 9,989 10,924 10,614 10,638 Profits after taxes................... 15,537 20,568 16,303 5,055 5,740 5,473 4,300 3,586 3,919 4,441 4,357 4,775 Memo: PAT unadj.i......... 15,415 20,465 16,719 4,958 5,689 5,398 4,420 3,572 3,900 4,439 4,808 4,794 Dividends................................ 6,104 6,873 7,228 1,626 1,645 1,720 1,882 1,815 1,784 1,803 1,826 1,879 Durable goods industries (84 corps.):3 Sales.......................................... 232,135 255,691 263,677 58,030 65,884 64,511 67,266 61,025 67,216 65,625 69,811 72,304 Total revenue......................... 234,891 258,552 266,703 58,645 66,573 65,230 68,104 61,795 67,845 66,225 70,838 73,503 Profits before taxes............... 23,634 21,291 19,381 4,709 6,220 5,242 5,120 3,517 4,870 4,569 6,425 6,072 Profits after taxes................... 13,230 11,963 10,701 2,684 3,552 2,955 2,772 1,965 2,788 2,653 3,295 3,762 Memo: PAT unadj.i......... 13,383 12,255 11,056 2,669 3,533 3,099 2,954 2,095 2,696 2,607 3,658 3,764 Dividends................................ 5,412 5,548 5,214 1,286 1,283 1,353 1,626 1,313 1,248 1,269 1,384 1,304 Selected industries: Food and kindred products (28 corps.): Sales.......................................... 42,629 52,753 57,149 11,885 12,729 13,663 14,476 13,490 14,117 14,600 14,942 14,762 Total revenue......................... 43,198 53,728 58,156 12,110 12,996 13,939 14,683 13,708 14,356 14,844 15,248 14,986 Profits before taxes............... 3,957 4,602 5,025 1,046 1,190 1,289 1,077 1,066 1,190 1,385 1,384 1,448 Profits after taxes................... 2,062 2,298 2,496 529 607 645 517 502 607 919 668 643 Memo: PAT unadj.i......... 2,073 2,329 2,601 533 610 646 540 526 615 745 715 644 Dividends................................ 936 1,011 1,100 243 248 253 267 268 271 274 287 307 Chemical and allied products (22 corps.): Sales.......................................... 43,208 55,083 57,735 12,507 13,892 14,606 14,078 13,618 14,329 14,660 15,128 15,816 Total revenue......................... 43,785 55,676 58,376 12,667 14,066 14,778 14,165 13,756 14,503 14,791 15,326 15,958 Profits before taxes............... 6,264 8,263 7,082 1,856 2,293 2,194 1,920 1,647 1,622 1,858 1,955 2,166 Profits after taxes................... 3,505 c4,876 3,889 1,044 1,247 1,223 1,362 932 929 1,035 993 1,232 Memo: PAT unadj.i......... 3,469 4,745 4,015 1,031 1,245 1,180 1,289 927 937 1,028 1,123 1,213 Dividends................................ 1,496 1,647 1,723 383 405 422 437 430 425 429 439 444 Petroleum refining (15 corps): Sales.......................................... 93,504 165,150 172,645 36,103 41,362 42,747 44,938 41,988 41,342 43,873 45,442 46,656 Total revenue......................... 95,722 168,680 175,915 36,913 42,261 43,659 45,847 42,851 42,100 44,633 46,331 47,407 Profits before taxes............... 17,493 30,657 26,305 8,296 7,564 8,339 6,458 6,227 6,612 6,961 6,505 6,254 Profits after taxes................... 8,551 11,775 8,551 3,098 3,349 3,181 2,147 1,905 2,078 2,300 2,268 2,481 Memo: PAT unadj.1......... 8,505 11,746 8,712 3,011 3,304 3,132 2,299 1,871 2,040 2,268 2,533 2,512 Dividends................................ 3,146 3,635 3,801 864 853 899 1,019 966 937 949 949 971 Primary metals and products (23 corps.): Sales.......................................... 42,400 54,044 48,578 11,888 13,976 14,285 13,895 12,482 12,393 12,274 11,429 12,733 Total revenue......................... 43,103 55,048 49,534 12,045 14,171 14,504 14,328 12,782 12,604 12,479 11,669 12,904 Profits before taxes............... 3,221 5,579 2,921 973 1,586 1,791 1,229 1,015 711 487 708 633 Profits after taxes................... 1,966 3,199 1,822 589 927 1,028 655 633 478 396 315 409 Memo: PAT unadj.i......... 2,039 3,485 2,003 607 942 1,137 799 639 485 381 498 416 Dividends................................ 789 965 945 221 209 238 297 273 227 216 229 218 Machinery (27 corps.): Sales.......................................... 65,040 73,894 78,914 16,830 18,836 18,853 19,375 18,245 19,881 19,764 21,024 20,375 Total revenue......................... 65,925 74,725 79,868 17,012 19,023 19,075 19,615 18,464 20,104 19,956 21,344 20,928 Profits before taxes............... 7,670 7,661 8,665 1,829 2,074 1,943 1,815 1,727 2,089 2,219 2,630 2,445 Profits after taxes................... 4,236 4,210 4,801 1,006 1,149 1,074 981 971 1,178 1,224 1,428 1,344 Memo: PAT unadj.i......... 4,209 4,149 4,864 996 1,137 1,096 920 975 1,173 1,231 1,485 1,343 Dividends................................ 1,607 1,957 2,015 441 441 476 599 483 485 519 528 529 Motor vehicles and equipment (9 corps.): Sales.......................................... 83,017 80,386 85,863 18,467 20,979 19,443 21,497 18,866 22,275 21,005 23,717 26,395 Total revenue......................... 83,671 80,881 86,475 18,597 21,146 19,593 21,545 19,011 22,341 21,083 24,040 26,702 Profits before taxes............... 7,429 2,920 3,077 636 1,115 231 938 -98 854 590 1,731 1,794 Profits after taxes................... 3,991 1,686 1,471 369 657 133 527 -127 451 328 819 1,331 Memo: PAT unadj.i......... 4,078 1,742 1,604 361 648 147 586 -12 455 280 881 1,337 Dividends................................ 2,063 1,537 1,121 384 382 386 385 294 276 274 277 285 ^ Historical data covering revisions for the textile, apparel, and leather Note—Data are obtained from published reports of companies and industry, as well as total nondurables and all manufacturing, are available reports made to the Securities and Exchange Commission. Sales are net upon request from the Capital Markets Section, Division of Research and of returns, allowances, and discounts, and exclude excise taxes paid di­ Statistics, Board of Governors of the Federal Reserve System, Washing­ rectly by the company. Total revenue data include, in addition to sales, ton, 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

SEPTEMBER 1976 o BUSINESS FINANCE A41 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Profits In­ Profits Cash Undis­ Profits In­ Profits Cash Undis­ Year before come after divi­ tributed Quarter before come after divi­ tributed taxes taxes taxes dends profits taxes taxes taxes dends profits 1968.. 85.6 39.3 46.2 21.9 24.2 1974-1*-................. 126.3 50.5 75.8 29.9 45.9 1969.. 83.5 39.7 43.8 22.6 21.2 II'............... 126.4 53.0 73.3 30.7 42.6 1970.. 71.5 34.5 37.0 22.9 14.1 Ill'............. 138.6 57.6 81.0 31.3 49.7 IV r.............. 119.2 48.6 70.6 31.1 39.5 1971.. 82.0 37.7 44.3 23.0 21.3 1972.. 96.2 41.4 54.6 24.6 30.0 1975—Ir................. 94.2 40.2 54.0 31.7 22.3 1973 ' 115.8 48.7 67.1 27.8 39.3 II »•............... 105.8 44.8 61.0 31.9 29.1 1974 ' 127.6 52.4 75.2 30.8 44.4 Ill'............. 126.9 54.8 72.1 32.6 39.5 1975 ' 114.5 49.2 65.3 32.1 33.2 IV »•.............. 131.3 57.2 74.2 32.2 41.9 1976—I *■................. 141.1 61.4 79.7 33.1 46.6 Note.—Dept, of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 197 0 187.4 492.3 50.2 7.7 4.2 201.9 193.3 35.0 304.9 6.6 204.7 10.0 83.6 197 1 203.6 529.6 53.3 11.0 3.5 217.6 200.4 43.8 326.0 4.9 215.6 13.1 92.4 197 2 221.3 574.4 57.5 10.2 3.4 240.0 215.2 48.1 352.2 4.0 230.4 15.1 102.6 1973—IV 242.3 643.2 61.6 11.0 3.5 266.1 246.7 54.4 401.0 4.3 261.6 18.1 117.0 1974—1.. 250.1 666.2 59.4 12.1 3.2 276.2 258.4 56.9 416.1 4.5 266.5 20.6 124.5 II. 253.9 685.4 58.8 10.7 3.4 289.8 269.2 53.5 431.5 4.7 278.5 19.0 129.1 III 259.5 708.6 60.3 11.0 3.5 295.5 282.1 56.1 449.1 5.1 287.0 22.7 134.3 IV 261.5 712.2 62.7 11.7 3.5 289.7 288.0 56.6 450.6 5.2 287.5 23.2 134.8 1975—1.. 260.4 698.4 60.6 12.1 3.2 281.9 285.2 55.4 438.0 5.3 271.2 21.8 139.8 II. 269.0 703.2 63.7 12.7 3.3 284.8 281.4 57.3 434.2 5.8 270.1 17.7 140.6 III 271.8 716.5 65.6 14.3 3.3 294.7 279.6 59.0 444.7 6.2 273.4 19.4 145.6 IV 274.1 731.6 68.1 19.4 3.6 294.6 285.8 60.0 457.5 6.4 281.6 20.7 148.8 1976—1.. 287.6 753.5 68.4 21.7 3.6 307.3 288.8 63.6 465.9 6.4 280.5 23.9 155.0 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 d N ur o a n bl ­ e Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o c m ati m on u s ­ Other1 A T (S o . . R A ta . . ) 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 2.2.62 23.39 3.18 2.54 2.00 2.12 17.63 2.92 13.96 22.05 1975......................... 112.78 21.84 26.11 3.79 2.55 1.84 3.18 17.00 3.14 12.74 20.60 1974—H ................. 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 Al .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.................... 25.87 4.78 6.18 .92 >49 .26 .72 4.18 .62 2.92 4.82 114.72 II.................. 29.70 5.61 7.05 .99 .68 .42 1.02 4.74 .76 3.21 5.21 118.12 Ill2............... 30.54 5.90 7.35 .95 .54 .34 .96 4.90 .98 8.62 122.96 1 Includes trade, service, construction, finance, and insurance. Note.—Dept, of Commerce estimates for corporate and noncorporate 2 Anticipated by business. business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 REAL ESTATE CREDIT □ SEPTEMBER 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 III IV Ip IIP ALL HOLDERS................................................. 603,417 682,321 742,522 766,839 782,581 800,440 815,113 837,252 1 - to 4-family.................................................... 372,793 416,883 449,937 467,747 479,540 492,191 502,812 519,675 Multifamily....................................................... 82,572 92,877 99,851 99,202 99,246 99,374 99,768 100,079 Commercial....................................................... 112,294 131,308 146,428 150,424 153,530 157,628 159,783 162,767 Farm................................................................... 35,758 41,253 46,306 49,466 50,265 51,247 52,750 54,731 MAJOR FINANCIAL INSTITUTIONS... 450,000 505,400 542.552 558,179 570,049 581,486 592,061 609,241 Commercial banks 1........................................ 99.314 119,068 132,105 133,012 134,514 136,186 137,986 141,086 1- to 4-family................................................ 57,004 67,998 74,758 75,356 76,149 77,018 78,218 80,218 Multifamily................................................... 5,778 6,932 7,619 6,816 6,363 5,915 5,515 5,115 Commercial................................................... 31,751 38,696 A3,619 44,598 45,694 46,882 47,812 49,112 Farm............................................................... 4,781 5,442 6,049 6,242 6,308 6,371 6,441 6,641 Mutual savings banks...................................... 67,556 73,230 74,920 75,796 76,490 77,249 77,738 78,587 1- to 4-family................................................ 46,229 48,811 49,213 49,458 49,719 50,025 50,344 50,893 Multifamily.................................................. 10,910 12,343 12,923 13,262 13,523 13,792 13,876 14.028 Commercial................................................... 10,355 12,012 12,722 13,024 13,194 13,373 13,456 13,603 Farm............................................................... 62 64 62 52 54 59 62 63 Savings and loan associations........................ 206,182 231,733 249,293 261,336 270,600 278,693 286,556 299,657 1 - to 4-family....................................... 167,049 187,750 201.553 211,290 218,483 224,710 231,337 242,213 Multifamily................................................... 20,783 22,524 23,683 24,409 24,976 25,417 25,990 27.029 Commercial................................................... 18,350 21,459 24,057 25,637 27,141 28,566 29,229 30,415 Life insurance companies................................ 76,948 81,369 86,234 88,035 88,445 89,358 89,781 89,911 1- to 4-family............................................... 22.315 20,426 19,026 18,377 17,964 17,602 17,321 17,101 Multifamily................................................... 17,347 18,451 19,625 19,795 19,756 19,708 19,726 19,511 Commercial................................................... 31,608 36,496 41,256 43,287 44,085 45,288 45,907 46,115 Farm............................................................... 5,678 5,996 6,327 6,576 6,640 6,760 6,827 7,184 FEDERAL AND RELATED AGENCIES.. 40,157 46,721 58,320 61,470 64,464 66,891 66,760 66,158 Government National Mortgage Association 5,113 4,029 4,846 5,610 6,534 7,438 7,619 5,557 1- to 4-family............................................... 2,513 1,455 2,248 2,787 3,692 4,728 4,886 3,165 Multifamily................................................. 2,600 2,574 2,598 2,823 2,842 2,710 2,733 2,392 Farmers Home Administration.................... 1,019 1,366 1,432 1,169 1,118 1,109 650 623 1- to 4-family.............................................. 279 743 759 367 343 208 91 70 Multifamily................................................. 29 29 167 268 134 215 23 23 Commercial................................................ 320 218 156 176 181 190 96 96 Farm............................................................. 391 376 350 358 460 496 434 434 Federal Housing and Veterans Adminis­ tration....................................................... 3,338 3,476 4,015 4,297 4,681 4,970 5,143 5,443 1- to 4-family.............................................. 2,199 2,013 2,009 1,915 1,951 1,990 1,922 1,981 Multifamily................................................. 1,139 1,463 2,006 2,382 2,730 2,980 3,221 3,462 Federal National Mortgage Association.. . 19,791 24,175 29,578 30.015 31,055 31,824 31,482 32,028 1- to 4-family.............................................. 17,697 20,370 23,778 23,988 25,049 25,813 25,562 26,112 Multifamily................................................. 2.094 3,805 5,800 6,027 6,006 6,011 5,920 5,916 Federal land banks......................................... 9,107 11,071 13,863 15,435 16,043 16,563 17,264 17,978 1- to 4-family.............................................. 13 123 406 497 525 549 563 575 Farm............................................................. 9.094 10,948 13,457 14,938 15,518 16.014 16,701 17,403 Federal Home Loan Mortgage Corporation 1,789 2,604 4,586 4,944 5,033 4,987 4,602 4,529 1- to 4-family.............................................. 1,754 2,446 4,217 4,543 4,632 4,588 4,247 4,166 Multifamily................................................ 35 158 369 401 401 399 355 363 MORTGAGE POOLS OR TRUSTS 2.. ., 14,404 18,040 23,799 29,550 31,483 34,653 37,684 40,803 Government National Mortgage Association 5,504 7,890 11,769 15,437 16,595 18,772 20,479 22,967 1- to 4-family.............................................. 5,353 7,561 11,249 14,856 15,024 18.014 19,693 22,086 Multifamily................................................. 151 329 520 581 671 758 786 881 Federal Home Loan Mortgage Corporation 441 766 757 1,193 1,323 1,598 1,999 2,153 1 - to 4-family.............................................. 331 617 608 1,008 1,105 1,349 1,698 1,831 Multifamily................................................. 110 149 149 185 218 249 301 322 Farmers Home Administration.................... 8,459 9,384 11,273 12,920 13,565 14,283 15,206 15,683 1 - to 4-family............................................. 5,017 5,458 6,782 8,112 8,563 9,194 9,516 9,818 Multifamily................................................. 131 138 116 116 296 295 542 563 Commercial................................................ 867 1,124 1,473 1,687 1,765 1,948 2,122 2,195 Farm............................................................. 2,444 2,664 2,902 3,005 2,941 2,846 3,026 3,107 INDIVIDUALS AND OTHERS 3............... 98,856 112,160 117,851 117,640 116,585 117,410 118,608 121,050 1- to 4-family.................................................. 45,040 51,112 53,331 55,193 55,441 56,403 57,408 59,446 Multifamily..................................................... 21,465 23,982 24,276 22,137 21,330 20,925 20,780 20,474 Commercial.................................................... 19,043 21,303 23,085 22.015 21,470 21,381 21,161 21,231 Farm................................................................. 13,308 15,763 17,159 18,295 18,344 18,701 19,259 19,899 1 Includes loans held by nondeposit trust companies but not bank trust Note.—Based on data from various institutional and Govt, sources, departments. with some quarters estimated in part by Federal Reserve in conjunction 2 Outstanding principal balances of mortgages backing securities in­ with the Federal Home Loan Bank Board and the Dept, of Commerce. sured or guaranteed by the agency indicated. Separation of nonfarm mortgage debt by type of property, if not re­ 3 Other holders include mortgage companies, Real Estate Investment ported directly, and interpolations and extrapolations where required, are Trusts, State and local credit agencies, State and local retirement funds, estimated mainly by Federal Reserve. Multifamily debt refers to loans on noninsured pension funds, credit unions, and U.S. agencies for which structures of 5 or more units. amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Sales p d M u er r a i i d o n e d g st O i a n n u g d t­ ­ Total rPr V U V i A AA 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 c409 1,606 198 1973............... 24,175 16,852 6,352 6,127 71 8,914 7,889 2,604 1,743 861 1,334 409 1,629 186 1974............... 29,578 19,189 8,310 6,953 5 10,765 7,960 4,586 1,904 2,682 2,191 52 4,553 2,390 1975............... 31,824 19,732 9,573 4,263 2 6,106 4,126 4,987 1,824 3,163 1,716 1,020 982 111 1975—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 2,815 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 4,486 1,752 2,735 73 64 178 376 June.. 32,028 19,238 9,391 240 857 4,153 4,529 1,729 2,801 163 75 72 285 July , . 4,551 1,713 2,838 152 84 39 154 i Includes conventional loans not shown separately. For FHLMC: Holdings and transactions cover participations as well as Note.—Data from FNMA and FHLMC, respectively. whole loans. Holdings include loans used to back bond issues guranteed For FNMA: Holdings include loans used to back bond issues guaranteed by GNMA. Commitments cover the conventional and Govt.-under­ by GNMA. Commitments include some 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 Apr. 5 Apr. 19 May 3 May 17 June 1 June 14 June 28 July 12 July 26 Aug. 9 Aug. 23 Sept. 7 Amounts (millions of dollars): Govt.-underwritten loans Offered1.................................... 106.2 132.1 483.3 634.3 349.5 146.6 261.2 148.3 311.8 190.1 171 .3 121.9 Accepted.................................. 56.2 60.1 222.3 321.4 224.7 98.8 157.5 88.4 212.0 107.4 107.0 68.8 Conventional loans 56.4 55.3 110.7 128.8 131.4 77.3 93.6 90.7 130.5 136.7 162.1 170.6 Accepted.................................. 31.8 33.4 60.1 68.9 90.5 70.3 59.2 82.0 105.2 93.4 115.3 117.8 Average yield (per cent) on short­ term commitments2 Govt.-underwritten loans......... 8.94 8.83 8.94 9.13 9.20 9.14 9.12 9.05 9.04 9.01 8.97 8.92 9.05 9.00 9.09 9.24 9.31 9.30 9.31 9.27 9.23 9.17 9.14 9.13 1 Mortgage amounts offered by bidders are total bids received. period of 12 years for 30-year loans, without special adjustment for 2 Average accepted bid yield (before deduction of 38 basis-point fee FNMA commitment fees and FNMA stock purchase and holding requirepaid for mortgage servicing) for home mortgages assuming a prepayment ments. Commitments mature in 4 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 REAL ESTATE CREDIT □ SEPTEMBER 1976 MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT (End of period, in billions of dollars) Sept. 30, Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, Holder 1974 1974 1975 1975 1975 1975 1976 138.6 140.3 142.0 143.0 144.9 147.0 148.3 FHA............................................................. 84.1 84.1 84.3 85.0 85.1 85.4 85.4 VA.................................................................. 54.5 56.2 57.7 58.0 59.8 61.6 62.9 Commercial banks......................................... 10.7 10.4 10.5 9.6 9.7 9.4 9.5 FHA.............................................................. 7.4 7.2 7.2 6.4 6.4 6.3 6.3 VA.................................................................. 3.3 3.2 3.3 3.2 3.3 3.1 3.2 Mutual savings banks.................................... 27.8 27.5 27.3 27.2 27.0 27.4 27.7 FHA.............................................................. 15.0 14.8 14.7 14.7 14.5 14.7 14.7 VA................................................................. 12.8 12.7 12.6 12.5 12.5 12.7 13.0 Savings and loan assns.................................. V FH A A .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 29.9 } 29.9 } 29.9 | 30.2 } 30.4 ) 30.6 )....................... Life insurance cos........................................... 12.9 12.7 12.5 12.2 12.1 11.8 11.6 FHA.............................................................. 8.7 8.6 8.4 8.2 8.1 7.9 7.8 VA.................................................................. 4.2 4.2 4.1 4.0 4.0 3.9 3.8 Others................................................................ 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 N of 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 m o 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 n r a e t t c 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 (p a 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 t r i 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—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 1976—Jan................... 32 99.2 3,099 10.25 20/11 74.3 10.7 1.29 11.2 Feb.................. 40 140.2 3,506 10.08 20/6 74.2 10.5 1.26 11.0 Mar................. 71 294.6 4,150 10.04 21/11 73.8 10.6 1.30 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

SEPTEMBER 1976 o REAL ESTATE CREDIT AND CONSUMER CREDIT A45 TERMS AND YIELDS ON NEW HOME MORTGAGES Conventional mortgages FHA- Yields (per cent) in insured primary market loans—Yield Period in private C ra o te n t ( r p a e c r t F c e h e a s r g a e n s d M (y a e tu ar r s i ) ty Loa ra n t / i p o r ice pr P ic u e r c ( h th a o s u e s. (t a h m L o o u o s a u . n n o t f FHLBB HUD s m ec a o r n k d e a t r 5 y cent) (per cent)2 (per cent) of dollars) dollars) series 3 series4 197 1 7.60 .87 26.2 74.3 36.3 26.5 7.74 7.75 7.70 197 2 7.45 .88 27.2 76.8 37.3 28.1 7.60 7.64 7.53 197 3 7.78 1.11 26.3 77.3 37.1 28.1 7.95 8.30 8.19 197 4 8.71 1.30 26.3 75.8 40.1 29.8 8.92 9.22 9.55 197 5 8.75 1.54 26.8 76.1 44.6 33.3 9.01 9.10 9.19 1975—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.. 8.75 1.35 26.5 77.5 46.3 35.3 8.97 9.00 9.03 June.. 8.69 1 .27 26.5 75.1 48.9 36.2 8.89 9.05 9.05 July*. 8.78 1.30 27.4 76.4 49.5 37.1 8.99 9.05 8.99 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—July.. 10.96 11.46 13.14 13.42 17.20 12.58 17.18 13.22 19.25 20.74 Aug.. 11.15 11.71 13.10 13.45 17.21 12.67 17.32 Sept.. 11.31 11.72 13.20 13.41 17.15 12.84 17.61 i 3! 43 ‘ i 9! 3 i' '26!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 * 1* 3! 60 * \9.49* ii iii’ 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 ’l’3.’59‘ '26.06' ‘26!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 * i 3!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 i 3.43 i 9.66 *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 May. 11.00 11.61 12.96 13.27 17.02 13.15 17.64 13! 35 'i 9!37 ’20!87 * June. 11.02 11.82 12.99 13.32 17.04 13.17 17.68 July.. 11.06 11.80 13.02 13.38 16.91 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 □ SEPTEMBER 1976 INSTALMENT CREDIT-TOTAL OUTSTANDING, AND NET CHANGE (In millions of dollars) 1976 Holder, and type of credit 1973 1974 1975 Jan. Feb. Mar. Apr. May June July Amounts outstanding (end of period) TOTAL........................................................... 146,434 155,384 162,237 160,824 160,402 160,729 162,334 164,101 166,664 168,674 By holder: Commercial banks................................ 71,871 75,846 78,703 78,293 77,957 78,039 78,982 79,785 80,850 81,930 Finance companies............................... 35,404 36,208 36,695 36,528 36,458 36,450 36,745 37,022 37,490 38,026 Credit unions......................................... 19,609 22,116 25,354 25,250 25,492 26,025 26,403 26,975 27,842 28,234 Retailers1................................................ 16,395 17,933 18,002 17,133 16,769 16,375 16,448 16,465 16,633 16,660 Others2................................................... 3,155 3,281 3,483 3,620 3,726 3,840 3,756 3,854 3,849 3,824 By type of credit: Automobile, total.................................. 50,065 50,392 53,028 52,832 53,044 53,650 54,572 55,484 56,667 57,659 Commercial banks............................ 31,502 30,994 31,534 31,305 31,322 31,580 32,162 32,664 33,269 33,877 Purchased...................................... 18,997 18,687 18,353 18,227 18,135 18,200 18,472 18,671 18,912 19,151 Direct.............................................. 12,505 12,306 13,181 13,078 13,187 13,381 13,690 13,993 14,358 14,726 Finance companies........................... 10,718 10,618 11,439 11,503 11,579 11,695 11,903 12,080 12,333 12,573 7,456 8,414 9,653 9,612 9,704 9,908 10,051 10,269 10,601 10,749 Others................................................. 389 366 402 412 439 467 456 471 464 460 Mobile homes: Commercial banks............................ 8,340 8,972 8,704 8,605 8,532 8,485 8,439 8,408 8,390 8,384 Finance companies........................... 3,358 3,524 3,451 3,411 3,384 3,363 3,351 3,336 3,343 3,333 6,950 7,754 8,004 7,976 7,973 8,026 8,089 8,209 8,367 8,452 Commercial banks............................ 4,083 4,694 4,965 4,928 4,907 4,924 4,978 5,048 5,129 5,192 Revolving credit: Bank credit cards.............................. 6,838 8,281 9,501 9,576 9,408 9,221 9,343 9,402 9,531 9,725 Bank check credit............................. 2,254 2,797 2,810 2,802 2,803 2,769 2,775 2,777 2,805 2,835 All other, total...................................... 68,629 73,664 76,738 75,621 75,258 75,215 75,765 76,485 77,561 78,286 Commercial banks, total................. 18,854 20,108 21,188 21,076 20,985 21,060 21,285 21,486 21,726 21,917 Personal loans............................... 12,873 13,771 14,629 14,589 14,549 14,578 14,743 14,871 15,034 15,148 Finance companies, total............... 20,914 21,717 21,655 21,465 21,348 21,247 21,350 21,466 21,675 21,983 Personal loans............................... 16,483 16,961 17,681 17,523 17,500 17,434 17,528 17,631 17,811 18,079 11,564 13,037 14,937 14,878 15,020 15,333 15,557 15,894 16,402 16,635 Retailers.............................................. 16,395 17,933 18,002 17,133 16,769 16,375 16,448 16,465 16,633 16,660 Others................................................. 902 869 956 1,069 1,136 1,200 1,125 1,174 1,125 1,091 Net change (during period)3 TOTAL........................................................... 19,676 8,952 6,843 1,103 1,123 1,473 1,427 1,474 1,330 1,303 By holder: Commercial banks................................ 11,001 3,975 2,851 129 467 552 575 713 409 619 Finance companies............................... 4,006 806 483 148 160 282 326 157 230 264 Credit unions......................................... 2,696 2,507 3,238 387 420 514 392 521 482 365 Retailers.................................................. 1,632 1,538 69 185 58 108 177 5 214 116 341 126 202 254 17 16 -42 78 -5 -61 By type of credit: Automobile, total................................. 5,968 327 2,631 539 614 663 732 652 526 556 Commercial banks............................ 4,197 -508 535 44 303 237 356 340 229 327 Purchased...................................... 2,675 -310 -340 26 35 99 162 110 32 60 Direct.............................................. 1,523 -198 875 18 267 138 194 230 197 267 Finance companies........................... 740 -100 821 238 146 240 224 122 116 108 Credit unions.................................... 1,024 958 1,239 203 165 192 151 181 186 135 Other.. . .................................. 7 -23 36 54 -6 2 9 —4 — 13 Mobile homes: Commercial banks............................ 1,933 632 -268 -62 -53 -18 -52 -37 -42 -28 Finance companies........................... 444 168 -73 -31 -35 -11 -17 * —9 Home improvement, total.................. 1,033 804 248 109 58 69 39 70 79 19 Commercial banks............................ 482 611 271 28 29 41 26 36 29 22 Revolving credit: Bank credit cards.............................. 1,430 1,443 1,220 106 132 192 139 193 98 171 Bank check credit............................. 478 543 14 -11 18 16 35 44 14 27 All other, total...................................... 8,389 5,036 3,072 452 389 550 546 570 655 567 Commercial banks, total................. 2,480 1,255 1,080 24 40 84 70 138 81 101 Personal loans.............................. 1,492 898 858 42 27 51 69 112 86 70 Finance companies, total............... 2,564 803 -64 -60 50 43 119 53 115 170 Personal loans............................... 1,746 479 717 -7 128 62 116 21 95 143 Credit unions.................................... 1,591 1,473 1,900 173 241 307 228 326 282 220 Retailers.............................................. 1,632 1,538 69 185 58 108 177 5 214 116 Others................................................. 122 -33 87 129 1 7 -49 48 -38 -39 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

SEPTEMBER 1976 □ CONSUMER CREDIT A47 INSTALMENT CREDIT EXTENSIONS AND LIQUIDATIONS (In millions of dollars) 1976 • Holder, and type of credit 1973 1974 1975 Jan. Feb. Mar. Apr. May June July Extensions1 TOTAL........................................................... 160,228 160,008 163,483 15,132 15,045 15,521 15,003 15,041 15,592 15,240 By holder: Commercial banks................................ 72,216 72,605 77,131 6,870 7,196 7,352 6,989 7,223 7,289 7,358 Finance companies............................... 38,922 35,644 32,582 2,975 3,018 2,945 2,913 2,776 2,986 2,861 Credit unions......................................... 21,143 22,403 24,151 2,253 2,248 2,389 2,386 2,448 2,456 2,329 25,440 27,034 27,049 2,578 2,347 2,596 2,544 2,313 2,650 2,533 Others3................................................... 2,507 2,322 2,570 456 236 238 171 280 211 159 By type of credit: Automobile, total................................. 46,105 43,209 48,103 4,505 4,523 4,689 4,583 4,471 4,600 4,477 Commercial banks........................... 29,369 26,406 28,333 2,446 2,672 2,699 2,677 2,616 2,660 2,680 Purchased.................................. 17,497 15,576 15,761 1,356 1,435 1,514 1,475 1,413 1,386 1,417 Direct.............................................. 11,872 10,830 12,572 1,091 1,238 1,185 1,202 1,204 1,274 1,263 Finance companies........................... 9.303 8,630 9,598 896 930 990 975 914 935 891 Credit unions.................................... 7,009 7,788 9,702 1,068 881 964 891 892 968 879 424 385 470 95 40 35 40 49 36 27 Mobile homes: 4,438 3,486 2,681 211 211 233 186 182 204 223 1,573 1,413 771 61 55 63 61 49 68 59 Home improvement, total.................. 4,414 4,571 4,398 440 405 414 413 385 410 381 Commercial banks........................... 2,487 2,789 2,722 235 244 253 259 233 235 240 Revolving credit: Bank credit cards............................. 13,863 17,098 20,428 1,921 2,012 2,118 1,985 2,103 2,088 2,152 Bank check credit............................. 3,373 4,227 4,024 361 392 380 394 422 435 401 86,462 86,004 83,079 7,633 7,447 7,624 7,382 7,429 7,786 7,546 Commercial banks, total................ 18,686 18,599 18,944 1,697 1,665 1,669 1,489 1,667 1,666 1,661 12,928 13,176 13,386 1,184 1,179 1,182 1,081 1,203 1,221 1,174 27,627 25,316 22,135 2,014 2,030 1,890 1,874 1,810 1,981 1,907 17,885 16,691 17,333 1,643 1,685 1,551 1,545 1,465 1,641 1,535 Credit unions.................................... 13,768 14,228 13,992 1,141 1,319 1,376 1,446 1,511 1,440 1,403 25,440 27,034 27,049 2,578 2,347 2,596 2,544 2,313 2,650 2,533 941 827 959 204 86 93 29 127 50 43 Liquidations1 TOTAL........................................................... 140,552 151,056 156,640 14,029 13,923 14,048 13,576 13,566 14,261 13,937 By holder: Commercial banks................................ 61,215 68,630 74,280 6,741 6,729 6,800 6,414 6,510 6,879 6,739 Finance companies............................... 34,916 34,838 32,099 2,827 2,858 2,663 2,587 2,619 2,756 2,597 Credit unions......................................... 18,447 19,896 20,913 1,866 1,828 1,875 1,994 1,927 1,974 1,964 23,808 25,496 26,980 2,393 2,289 2,488 2,367 2,308 2,436 2,417 Others3................................................... 2,166 2,196 2,368 202 219 222 214 202 216 220 By type of credit: Automobile, total................................. 40,137 42,883 45,472 3,966 3,909 4,026 3,851 3,819 4,074 3,922 Commercial banks........................... 25,172 26,915 27,798 2,402 2,370 2,463 2,321 2,276 2,432 2,354 Purchased....................................... 14,823 15,886 16,101 1,329 1,399 1,41.6 1,313 1,303 1,354 1,357 Direct.............................................. 10,349 11,029 11,697 1,073 970 1,047 1,008 973 1,077 996 Finance companies........................... 8,563 8,730 8,777 658 783 750 751 792 819 784 Credit unions..................................... 5,985 6,830 8,463 865 716 772 740 711 783 745 Others.................................................. 417 4Q8 434 41 40 42 39 39 40 39 Mobile homes:. Commercial banks........................... 2,505 2,854 2,949 273 264 251 237 219 247 251 Finance companies........................... 1,129 1,245 844 91 89 63 72 67 68 68 Home improvement, total.................. 3,381 3,767 4,150 331 348 344 374 314 330 362 Commercial banks........................... 2,005 2,178 2,451 207 216 212 232 197 206 218 Revolving credit: Bank credit cards.............................. 12,433 15,655 19,208 1,815 1,881 1,926 1,846 1,911 1,990 1,981 Bank check credit............................. 2,894 3,684 4,010 372 374 364 359 378 421 374 All other, total...................................... 78,072 80,969 80,007 7,181 7,058 7,074 6,836 6,859 7,132 6,979 Commercial banks, total................ 16,205 17,345 17,864 1,673 1,625 1,584 1,418 1,529 1,585 1,560 Personal loans............................... 11,435 12,278 12,528 1,143 1,151 1,131 1,012 1,091 1,135 1,104 Finance companies, total............... 25,063 24,513 22,199 2,073 1,981 1,846 1,756 1,758 1,866 1,737 Personal loans............................... 16,139 16,212 16,616 1,650 1,556 1,489 1,429 1,445 1,546 1,392 Credit unions.............................. 12,177 12,755 12,092 968 1,077 1,069 1,218 1,185 1,158 1,183 Retailers.............................................. 23,808 25,496 26,98(7 2,393 2,289 2,488 2,367 2,308 2,436 2,417 Others.................................................. 819 860 872 75 86 86 77 79 87 82 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 □ SEPTEMBER 1976 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 1967 1975 1975 1976 pro­ aver­ Grouping por­ age tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July^ Aug. Major m Total index.......................................... 100.00 117.8 121.0 122.1 122.2 123.5 124.4 129.6 130.0 130.7 131.4 Products, total......................................... 60.71 119.3 122.3 122.8 122.4 123.8 124.9 126.0 127.4 128.1 128.9 129.3 129.6 130.1 Final products...................................... 47.82 118.2 120.8 121.5 120.9 122.3 123.5 123.9 125.3 126.4 126.3 127.3 127.5 127.7 127.9 Consumer goods............................ 27.68 124.0 127.5 129.0 128.7 131.1 132.3 133.1 134.9 136.1 136.1 137.4 137.5 137.2 137.2 Equipment....................................... 20.14 110.2 111.4 111.3 110.0 110.0 111.5 111.2 112.1 112.9 112.9 113.5 113.9 114.6 115.3 Intermediate products....................... 12.89 123.1 127.9 127.6 128.0 129.3 129.9 133.6 135.3 134.9 134.7 135.0 135.8 136.6 137.7 Materials.................................................. 39.29 115.5 119.0 121.0 122.0 123.1 123.3 125.3 127.3 128.2 129 130.6 131.0 132.0 133.2 Consumer goods Durable consumer goods........................ 7.89 121.4 129.2 132.2 131.9 132.5 134.0 134.7 137.9 140.3 143.2 144.3 142.2 142.1 Automotive products......................... 2.83 125.9 139.1 142.1 140.8 143.2 147.7 142. 148.9 155.2 154.0 156.6 155.8 155.2 Autos and utility vehicles............. 2.03 113.7 130.2 133.9 133.6 134.7 140.0 133.4 142.0 149.5 152.1 153.4 156.5 154.6 154.2 Autos............................................ 1.90 101.1 116.3 118.5 119.1 120.9 122.8 118.9 125. 133.6 134.3 134.3 137.5 135.0 134.6 Auto parts and allied goods........ .80 156.6 161.8 162.7 159.0 164.9 167.0 167.4 166.5 169.5 163.1 155.6 156.9 158.6 157.9 Home goods........................................ 5.06 118.8 123.5 126.7 127.0 126.5 126.4 130.3 131.7 132.0 133.1 137.2 137.5 134.7 134.9 Appliances, A/C, and TV............. 1.40 98.0 105.8 107.0 105.3 100.9 101.1 107. 112.6 114.6 117.2 123.5 123.8 110.1 112.1 Appliances and TV.................... 1.33 100.2 109.4 111.0 109.3 103.7 104.4 110.6 115.2 117.1 119.6 126.4 126.7 114.0 114.8 Carpeting and furniture............... 1.07 126.8 134.3 141.1 141.9 144.7 142.0 144. 145.6 141.4 143. 142.6 142.5 143.8 2.59 126.9 128.8 131.4 132.6 132.9 133.6 136.6 136.3 137.9 137. 142.5 142.8 144.4 143.9 Nondurable consumer goods.................. 19.79 125.1 126.9 127.6 127.4 130.6 131.5 132.5 133.9 134.4 > 135.1 134.9 135.3 135.3 4.29 111.6 117.5 116.8 120.4 123.2 123.9 127.4 127.6 130.1 132.1 128.0 Consumer staples................................ 15.50 128.8 129.6 130.7 129.3 132.5 133.6 133.9 135.7 135.6 , 135.8 136.7 137.3 137.6 Consumer foods and tobacco.. . 8.33 122.8 125.1 125.2 125.3 127.6 127.2 128.5 129.9 129.0 ■ 129.8 130.2 131.1 Nonfood staples.............................. 7.17 135.8 134.9 137.1 133.8 138.2 141.0 140.2 142.3 143.3 143.3 142.7 144.5 144.6 144.6 Consumer chemical products.. 2.63 151.3 149.1 150.4 149.8 157.8 159.7 157.3 161.1 163.6 162.1 161 .4 165.4 166.2 Consumer paper products........ 1.92 107.0 105.7 108.0 104.4 107.5 113.4 113.3 113.9 113.4 113.8 112.3 113.0 Consumer energy products----- 2.62 141.6 142.3 145.0 139.2 140.9 142.8 142.4 144.3 145.0 145.1 147.3 146.0 Residential utilities................ 1.45 152.3 153.0 154.1 148.6 152.0 152.0 154.5 153.7 153.7 Equipment Business equipment.................................. 12.63 128.2 129.9 129.2 128.8 129.6 131.6 131.0 132.6 134.0 134.1 134.6 135.2 136.2 137.0 Industrial equipment......................... 6.77 121.2 121.8 121.9 122.1 123.0 124.5 123.5 124.0 125.6 125.3 126.9 127.4 127.1 127.9 Building and mining equip........... 1.44 168.3 172.4 170.5 172.9 174.9 172.9 171.4 171.5 172.1 170.7 174.6 174.9 176.0 176.9 Manufacturing equipment........... 3.85 99.9 100.8 100.7 100.5 99.9 101.3 101.2 102.7 104.4 105.4 106.4 106.5 106.5 107.2 Power equipment........................... 1.47 130.8 127.2 129.5 128.9 132.3 137.6 134.6 133.1 135.6 132.7 134.0 135.4 133.2 134.0 Commercial transit, farm equip.... 5.86 136.3 139.1 137.8 136.4 137.2 139.7 139.7 142.4 143.7 144.6 143.7 144.4 146.8 147.7 Commercial equipment................. 3.26 157.8 161.8 160.4 158.5 159.5 164.4 165.0 166.6 168.5 169.5 171.4 173.3 174.0 Transit equipment.......................... 1.93 101.9 104.6 104.4 102.4 102.8 102.9 100.2 103.7 104.7 104.2 104.7 106.9 107.6 .67 130.6 127.9 123.7 126.6 127.7 125.6 131.5 135.3 134.7 132.7 133.1 128.0 133.6 Defense and space equipment................ 7.51 80.0 80.6 81.2 78.5 77.3 77.7 78.0 77.6 77. 77.3 78.2 78.3 78.3 78.9 Intermediate products Construction supplies............................ 6.42 116.3 121.3 122.3 122.7 123.1 124.1 126.8 129.6 128.7 130.9 131.9 132.7 134.1 Business supplies.................................... 6.47 129.8 134.3 132.8 133.3 135.4 135.9 140.3 140.9 141.2 141.3 139.0 139.7 140.4 Commercial energy products........... 1.14 150.6 153.9 150.9 147.5 149.8 147.9 158.1 154.0 157.6 156.8 157.1 157.7 157.8 Materials Durable goods materials......................... 20.35 109.1 112.9 114.5 114.6 115.2 115.5 118.3 121.6 122.4 124.5 126.8 127.1 129.2 131.1 Durable consumer parts................... 4.58 97.7 108.7 110.8 107.2 109.3 111.6 111.7 116.7 118.5 119.2 123.0 123.2 124.0 124.5 5.44 118.9 117.4 119.0 120.6 122.3 123.9 125.7 127.5 128.5 130.5 133.0 134.0 135.1 136.5 Durable materials n.e.c..................... 10.34 109.0 112.4 113.7 114.8 114.0 112.9 117.4 120.7 121.0 123.5 125.2 125.3 128.5 131.1 Basic metal materials.................... 5.57 99.1 101.3 100.0 99.5 99.5 96.1 101.9 105.1 104.0 107.8 113.2 111 .3 115.8 Nondurable goods materials.................. 10.47 126.6 131.6 138.8 140.3 141.3 142.6 142.9 145.5 146.7 146.9 146.2 147.7 147.9 148.2 Textile, paper, and chem. mat......... 7.62 129.0 134.3 142.9 144.9 146.2 147.9 147.5 150.5 152.7 152.2 150.9 152.3 153.0 152.9 Textile materials............................. 1.85 100.6 107.8 118.2 117.3 118.4 118.9 117.8 116.2 115.5 114.1 116.4 116.7 116.6 Paper materials............................... 1.62 113.2 115.5 120.4 121.6 124.4 125.9 126.5 130.0 130.1 132.1 131.2 136.2 135.1 Chemical materials......................... 4.15 147.9 153.5 162.7 166.3 167.2 169.5 168.9 173.9 178.0 177.2 173.9 174.5 176.2 Containers, nondurable..................... 1.70 127.9 131.9 140.2 137.3 134.8 136.1 139.0 142.2 141.3 141.9 140.7 146.6 143.1 Nondurable materials n.e.c.............. 1.14 108.3 112.9 109.1 114.3 118.4 116.7 118.3 117.3 115.1 120.4 123.2 119.4 121.5 Energy materials..................................... 8.48 117.2 118.3 114.5 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.4 118.9 120.0 Primary energy.................................... 4.65 108.3 107.7 106.0 109.6 110.5 107.3 107.7 105.4 106.2 105.0 106.2 107.1 104.1 Converted fuel materials................. 3.82 128.0 131.2 124.8 125.9 130.8 132.3 136.3 135.2 136.0 135.7 138.1 136.5 137.0 Supplementary groups Home goods and clothing.................... 9.35 115.5 120.8 122.1 124.0 125.0 125.2 129.9 129. 131.1 131.5 134.9 133.1 131.7 131.5 Energy, total............................................ 12.23 125.5 126.7 124.5 124.5 127.1 126.6 128.8 127.5 128.6 128.2 129.3 129.5 128.4 129.0 Products................................................ 3.76 144.3 145.7 146.8 141.8 143.7 144.5 147.2 147.1 148.8 149.3 148.8 150.5 149.6 149.4 Materials.............................................. 8.48 117.2 118.3 114.5 117.0 119.7 118.7 120.6 118.8 119.6 118.8 120.6 120.4 118.9 120.0 For Notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ INDUSTRIAL PRODUCTION A49 INDUSTRIAL PRODUCTION—1976 REVISION (Seasonally adjusted, 1967 = 100) 1967 1975 1976 SIC pro­ 1975 Grouping code por­ aver­ tion age Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July? Aug.e Gross value of products in market structure (Annual rates, in billions of 1972 dollars) 1286.3 505.9 517.2 521.5 521.1 527.1 528.4 531.9 544.3 546.0 545.0 551.5 552.2 552.6 555.2 1221.4 393.3 400.3 405.3 404.0 409.7 410.6 410.9 421.7 423.0 421.8 427.5 428.3 428.8 430.4 Consumer goods............... 1156.3 274.4 280.7 284.3 285.0 290.5 292.0 292.3 300.6 299.1 299.9 303.7 304.5 303.5 303.6 Equipment......................... 165.3 119.0 119.3 121.0 119.1 119.3 118.9 119.1 121.1 123.6 122.1 123.7 123.8 125.3 126.7 Intermediate products............. 164.9 112.6 116.9 116.1 116.6 117.6 117.9 120.8 122.8 122.6 123.0 123.7 123.9 123.9 124.7 Major industry groupings 12.05 128.5 129.0 127.2 127.9 130.5 129.2 131.8 131.5 131.6 131.2 132.0 131.5 130.4 131.4 Mining.................................... 6.36 112.8 111 .6 111 .6 113.8 114.2 112.9 113.6 112.7 113.9 113.5 113.0 113.4 111 .7 113.2 Utilities.................................... 5.69 146.0 148.3 144.6 143.8 148.8 147.2 152.0 152.5 151.4 150.8 153.0 151.6 151.3 151.6 Electric................................ 3.88 160.8 164.7 159.0 157.3 165.5 162.3 167.4 168.7 167.3 87.95 116.3 119.7 121.4 121.2 122.7 123.6 125.2 127.0 127.9 128.5 129.6 130.1 131.0 131.5 Nondurable............................ 35.97 126.4 130.5 132.9 133.6 136.2 136.9 138.4 140.2 140.7 140.7 140.9 141.1 141.2 141 .1 Durable................................... 51.98 109.3 112.3 113.5 112.7 113.4 114.4 115.8 117.9 119.0 120.1 121.7 122.3 123.9 124.9 Mining Metal mining.............................. 10 .51 115.8 115.0 113.5 112.5 118.1 117.9 122.2 124.2 122.3 124.3 118.3 118.3 122.0 Coal.............................................. 11,12 .69 113.4 112.9 112.6 122.2 125.6 109.9 111 .2 109.6 114.4 114.4 119.2 122.7 104.8 113.1 Oil and gas extraction............. 13 4.40 113.3 112.4 111.8 113.1 112.3 113.1 112.5 110.1 111 .9 111.3 110.8 110.9 110.4 111.2 Stone and earth minerals........ 14 .75 107.0 103.9 108.0 110.9 112.1 111.5 117.1 120.0 119.3 117.5 116.7 116.5 118.9 Nondurable manufactures Foods.......................................... 20 8.75 123.4 125.8 126.2 126.4 128.8 128.5 129.2 130.8 128.3 129.2 131.2 129.8 131.0 Tobacco products..................... 21 .67 111.8 110.5 114.1 113.9 118.5 116.0 117.3 118.8 122.4 115.4 114.5 115.4 Textile mill products................ 22 2.68 122.3 130.0 138.3 137.5 141.6 139.0 137.6 138.7 136.4 135.7 138.0 138.4 138.5 Apparel products...................... 23 3.31 107.6 112.8 111.5 115.9 118.3 121.2 123.8 128.0 126.3 126.1 130.3 126.6 Paper and products.................. 26 3.21 116.3 120.5 124.5 126.5 127.7 129.5 130.3 133.0 132.2 133.9 130.4 139.1 134.3 135.8 Printing and publishing........... 27 4.72 113.4 115.3 114.7 113.2 115.4 118.4 120.0 121.0 121.0 122.0 120.5 119.7 121.4 121.0 Chemicals and products.......... 28 7.74 147.3 150.8 154.4 157.5 161.9 163.3 162.9 167.6 170.6 168.7 166.6 169.4 170.3 Petroleum products.................. 29 1.79 124.1 126.8 130.8 125.1 124.9 126.3 125.7 129.1 131.8 131.6 132.7 134.7 134.3 ’ i 32!9 Rubber & plastic products___ 30 2.24 166.7 180.4 187.6 185.1 185.2 185.3 188.4 196.7 203.5 198.2 185.6 190.6 200.4 Leather and products............... 31 .86 76.5 80.7 80.9 85.8 87.7 83.2 86.0 86.1 86.0 87.7 91.4 84.0 87.0 Durable manufactures Ordnance, pvt. & govt............... 19,91 3.64 76.6 76.5 75.9 72.0 70.0 70.1 69.9 69.5 69.5 69.1 71 .4 73.1 73.9 74.5 Lumber and products.............. 24 1.64 107.6 113.6 115.8 116.8 114.1 116.4 123.5 123.9 121.1 122.8 123.0 120.3 123.0 Furniture and fixtures............. 25 1.37 118.2 123.6 128.4 127.9 128.7 130.3 132.7 134.1 130.6 131.7 131.0 130.1 133.4 Clay, glass, stone prod............. 32 2.74 117.9 121.0 126.4 127.8 127.5 129.4 128.6 128.5 133.7 132.7 133.9 136.2 137.5 Primary metals.......................... 33 6.57 96.4 97.7 97.9 95.4 98.1 92.6 98.1 103.9 101.4 105.4 113.2 112.7 117.5 121.0 Iron and steel........................ 4.21 95.8 92.7 93.4 92.0 96.5 89.1 92.9 100.9 97.7 103.5 110.7 112.0 115.6 118.0 Fabricated metal prod............. 34 5.93 109.9 113.8 115.3 114.4 116.3 117.3 116.6 120.9 120.2 121.5 121.4 124.0 124.6 126.0 Nonelectrical machinery......... 35 9.15 125.1 126.2 125.5 125.4 126.6 128.6 129.0 131.5 132.9 133.5 134.0 133.5 134.3 134.9 Electrical machinery.................. 36 8.05 116.5 118.0 120.2 120.1 120.1 122.7 124.7 126.5 127.8 130.0 131.8 132.0 130.9 130.8 Transportation equip............... 37 9.27 97.4 105.0 105.9 104.4 104.7 106.7 105.8 109.0 111 .2 110.6 112.9 112.6 112.7 113.5 Motor vehicles & pts........... 4.50 111.1 123.7 126.8 126.5 127.1 130.1 126.7 135.2 140.8 141.3 144.3 146.5 146.7 147.0 Aerospace & misc. tr. eq___ 4.77 84.5 87.3 86.3 83.6 83.6 84.7 86.1 84.3 83.3 81.7 83.3 80.7 80.8 82.0 Instruments................................. 38 2.11 132.3 131.9 135.1 136.0 136.4 140.9 142.0 141.8 144.4 145.4 149.0 149.5 151.9 154.1 Miscellaneous mfrs................... 39 1.51 128.3 131.5 132.1 134.6 137.6 137.3 139.5 140.7 142.5 140.7 145.5 145.9 147.3 145.1 1 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 □ SEPTEMBER 1976 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices4 facturing2 In­ Ca­ Market dustry pacity Nonag­ utiliza­ Con­ ricul­ Period Products tion struc­ tural Total Whole­ Total in mfg. tion em­ Em­ Pay­ retail Con­ sale Final (1967 con­ ploy­ ploy­ rolls sales3 sumer com­ Mate­ Manu­ output tracts ment— ment modity Total Inter­ rials factur­ = 100) Total i Con­ Equip­ mediate ing Total sumer ment goods 1955....................... 58.5 56.7 55.4 59.0 50.4 61.6 61.3 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.9 58.6 61.2 55.3 64.4 62.9 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957....................... 61.9 61.2 60.4 62.7 57.5 64.4 62.8 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958....................... 57.9 58.7 57.6 62.1 51.5 62.9 56.6 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959....................... 64.8 64.5 63.2 68.1 56.5 69.5 65.3 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960....................... 66.2 66.3 65.3 70.7 58.0 69.9 66.1 65.4 80.1 68.6 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 67.0 65.8 72.2 57.3 71.3 66.2 65.6 77.6 70.2 82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.3 71.4 77.1 63.7 75.7 72.1 71.5 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— S A e u p g t . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 2 1 . . 1 0 1 1 2 2 2 2 . . 3 8 1 1 2 2 1 0 . . 5 8 1 1 2 2 7 9 . . 5 0 1 1 1 1 1 1 . . 3 4 1 12 2 7 7 . . 6 9 1 1 2 1 1 9 . . 0 0 1 11 2 9 1 . . 7 4 1f A07O , AU 2 1 0 5 8 7 . . 0 0 1 1 1 1 6 7 . . 9 4 9 9 0 2 . . 9 0 1 1 5 5 4 7 . . 2 0 1 19 8 1 9 1 16 6 3 2 . . 6 8 1 17 77 6 . . 7 7 Oct............ 122.2 122.4 120.9 128.7 110.0 128.0 122.0 121.2 | 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 | 70.7 148.0 117.8 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 i 183.0 118.7 94.0 165.9 197 166.7 179.3 Feb............ 127.3 127.4 125.3 134.9 112.1 135.3 127.3 127.0 [ 72.1 170.0 119.0 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 j I 185.0 119.4 94.9 167.4 204 167.5 179.6 Apr............ 128.4 128.0 126.3 136.1 112.9 134.7 129.2 128.5 189.0 119.9 95.5 166.1 205 168.2 181.3 May.......... 129.6 128.9 127.3 137.4 113.5 135.0 130.6 129.6 [ 73.0 205.0 119.8 95.4 170.7 202 169.2 181.8 June.......... 130.0 129.3 127.5 137.5 113.9 135.8 131 .0 130.1 J 187.0 *•119.9 r95 .3 *•171.6 206 170.1 183.1 July r......... 130.7 129.6 127.7 137.2 114.6 136.6 132.0 131.0 184.0 r120.2 r95.1 r173.0 206 171.1 184.3 Aug........... 131.4 130.1 127.9 137.2 115.3 137.7 133.2 131.5 120.6 95.6 175.6 210 183.7 A 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; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July rotal construction contracts 1......... 93,685 90,237 9,04410,037 7,692 7,767 5,573 5,431 6,390 6,149 8,908 9,408 9,836 10,533 9,774 By type of ownership: Public............................................ 32,062 31,415 3,784 3,040 2,725 2,544 1,597 1,724 1,655 1,719 2,192 2,383 3,915 3,136 3,246 Private 1....................................... 61,623 58,822 5,260 6,997 4,967 5,223 3,976 3,708 4,734 4,430 6,716 7,025 5,921 7,397 6,528 By type of construction: Residential building 1............... 33,567 31,347 3,09*3 2,784 2,966 3,189 2,404 2,233 2,157 2,546 3,618 4,003 3,955 4,166 4,149 Nonresidential building............ 33,131 30,577 3,165 2,666 2,526 2,629 1,859 1,865 1,939 1,996 2,561 2,741 2,819 2,805 3,031 Nonbuilding................................ r26,988 28,313 2,786 4,587 2,200 1,949 1,309 1,334 2,294 1,608 2,729 2,664 3,062 3,562 2,594 *rivate housing units authorized... 1,074 r926 1,016 995 1,092 1,111 1,127 1,091 1,147 1,165 1,188 1,082 1,158 rl,150 1,219 (In thousands, S.A., A.R.) i 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

SEPTEMBER 1976 □ CONSTRUCTION A51 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public 1 Nonresidential Period Total i Total d R en es ti i a ­ l Buildings P U ub ti l l i ­ c Total M ta i r l y i­ H w ig ay h­ C v o a a n n ti s d o e n r­ Other Total ities develop­ Indus­ Com­ Other and ment trial mercial build­ Other ings 2 196 7 78,082 52,546 25.564 26,982 25,536 695 8,591 2,124 14,126 196 8 87,093 59,488 30.565 28,923 6,021 7,761 4,382 10,759 27,605 808 9,321 1,973 15,503 196 9 93.917 65,953 33,200 32,753 6,783 9,401 4,971 11.598 27,964 879 9,250 1,783 16,052 197 0 94,855 66,759 31,864 34,895 6,518 9,754 5,125 13,498 28,096 718 9,981 1,908 15,489 197 1 109,950 80,079 43,267 36,812 5,423 11,619 5,437 14,333 29,871 901 10,658 2,095 16,217 197 2 124,085 93,901 54,288 39,613 4,676 13,464 5,898 15,575 30,184 1,087 10,429 2,172 16,496 197 3 . 137.917 105,412 59,727 45,685 6,243 15,453 5,888 18,101 32,505 1,166 10,505 2.313 18,521 197 4 138,526 100,179 50,378 49,801 7,902 15,945 5,797 20,157 38,347 1,188 12,069 2,741 22,349 197 5 132,043 93,034 46,476 46,558 8,017 12,804 5,585 20,152 39,009 1,391 10,345 3,227 24,046 1975—July.. 133,096 91,970 46,123 45,847 8,175 12,334 5,449 19,889 41,126 1,339 11,402 3,275 25,110 Aug.. 132,178 92.062 46,332 45,730 8,045 12,365 5,581 19,739 40,116 1,403 11,010 3,454 24,249 Sept. 136,310 95,365 48,375 46,990 7,895 12,369 5,820 20,906 40,945 1.597 10,738 3,429 25,181 Oct.. 136,204 95,561 49,396 46,165 7,591 12,418 5,604 20,552 40,643 1,500 10,425 3.314 25,404 Nov. 138,040 97,346 50,409 46,937 7,720 12,420 5,754 21,043 40,694 1,617 10,389 3,575 25,113 Dec.. 137,833 98.063 52,061 46,002 7,582 12,209 5,608 20,603 39,770 1,583 10,423 3,670 24,094 1976—Jan.. 136,898 99,530 53,087 46,443 7,522 11,479 5,843 21.599 37,368 1,505 9,808 3,295 22,760 Feb.. 139,253 102,858 55,625 47,233 7,842 12,762 6,024 20,605 36,395 1.598 9,018 3,751 22,028 Mar. 144,458 106,441 57,464 48,977 7,605 13,346 5,957 22,069 38,017 1,454 9,632 3,385 23,546 Apr.. 142,006 104,109 56,037 48,072 7,227 12,604 5,567 22,674 37,897 1,522 10,575 3,760 22,040 May. rl 40,052 '103,838 '54,881 48,957 6,967 12,331 5,967 23,692 36,214 1,423 9,817 3,523 21,451 June' 143,654 104,738 56,305 48,433 6,738 12,006 6,499 23,190 38,916 1,368 Julyp 141,543 104,967 57,812 47,155 6,072 12,009 6,043 23,031 36,576 1,448 1 Data beginning Jan. 1976 are not strictly comparable with prior data 2 Includes religious, educational, hospital, institutional, and other build­ because of change by Census Bureau in its procedure for estimating con­ ings. struction outlays of State and local governments. Such governments accounted for 86 per cent of all public construction expenditures in 1974. Note.—Census Bureau data; monthly series 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) 196 7 1,292 844 448 240 487 190 22.7 23.6 196 8 1,508 899 608 1,320 859 461 318 490 218 24.7 24.6 196 9 1,467 811 656 1.399 807 591 885 350 535 413 448 228 25.6 27.0 197 0 1,434 813 621 1,418 802 617 922 381 541 401 485 227 23.4 26.2 197 1 2,052 1,151 901 1,706 1,014 692 1,254 505 749 497 656 294 25.2 25.9 197 2 2,357 1,309 1,047 1,971 1,143 828 1,586 640 947 576 718 416 27.6 28.3 197 3 2,045 1,132 913 2,014 1,174 840 1,599 583 1,016 567 620 456 32.5 32.9 197 4 1,338 888 450 1,692 931 760 1,189 516 673 329 501 407 35.9 36.2 197 5 1,160 892 268 1,297 866 430 1,003 531 472 216 544 383 39.3 38.9 1975—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 1.033 '526 507 225 573 378 38.2 37.8 Sept.. 1,304 966 338 1,315 969 346 1.033 '528 505 228 571 384 39.7 38.2 Oct.. 1,431 1,093 338 1,115 738 377 1,057 '556 '501 235 610 389 40.7 38.4 Nov.. 1,381 1,048 333 1,386 992 394 1.056 '560 '496 230 660 381 41.1 38.6 Dec.. 1,283 962 321 1,329 993 336 1.041 '558 '482 224 641 378 42.1 38.9 1976—Jan.. 1,236 957 279 1,213 926 287 1.042 '564 '478 263 573 379 41.6 39.1 Feb.. 1,547 1,295 252 1,299 953 346 1,053 '584 '469 287 679 384 42.7 39.3 Mar., 1,417 1,110 307 1.399 1,032 367 1.057 '594 463 244 '573 389 '43.6 39.6 Apr.. 1,367 1,055 312 1,266 '986 '280 1,061 599 462 237 '630 394 '43.5 '39.8 May. 1,422 '1,065 '357 '1,351 '926 '425 '1,056 '604 '452 260 '541 '398 '43.6 40.2 June. '1,527 '1,149 '378 1,343 1,027 316 1,069 614 456 '233 '580 '406 '46.3 '40.5 Julyp 1,387 1,128 259 228 1 Merchant builders only. for mobile homes, which are private, domestic shipments as reported by the Mobile Home Manufactured Housing Institute and seasonally ad­ Note.—All series except prices, seasonally adjusted. Annual rates for justed by Census Bureau. Data for units under construction seasonally starts, completions, mobile home shipments, and sales. Census data except adjusted by Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 EMPLOYMENT □ SEPTEMBER 1976 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a t u . u S l l t a . n i A 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 S a o o b . r A t c o a e . r l ) Total Total E In m c n u p o l l t n o u a r y a g e l r d i 1 ­ In U pl n o e y m ed ­ U ( n p e e m r S a m r . e A t c e p n e . 2 l ) t n o y t; ­ industries agriculture 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 85,935 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—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 July................. 156,142 56,817 97,473 95,333 87,907 84,566 3,341 7,426 7.8 Aug.................. 156,367 57,530 97,634 95,487 87,981 84,557 3,424 7,506 7.9 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 76,896 20,068 644 4,015 4,644 16,674 4,091 13,021 13,739 78,413 20,046 694 3,957 4,696 17,017 4,208 13,617 14,177 76,987 18,342 745 3,462 4,499 16,949 4,473 13,996 14,771 seasonally adjusted 1975—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 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 May.................................................. 78,923 18,964 773 3,386 4,498 17,439 4,278 14,514 15,071 June................................................... '78,943 '18,950 '779 '3,362 '4,477 '17,460 '4,297 '14,557 15,061 July................................................... '79,192 '18,937 '788 '3,369 '4,492 '17,559 4,300 '14,617 '15,130 Aug.P................................................ 79,431 19,021 749 3,343 4,495 17,612 4,312 14,694 15,205 NOT SEASONALLY ADJUSTED 1975—Aug.................................................... 76,900 18,450 763 3,688 4,493 16,959 4,273 14,162 14,112 Sept................................................... 77,614 18,694 758 3,659 4,503 17,084 4,243 14,113 14,560 Oct..................................................... 78,193 18,687 763 3,620 4,503 17,136 4,238 14,185 15,061 Nov................................................... 78,339 18,635 763 3,522 4,509 17,313 4,235 14,174 15,188 Dec.................................................... 78,527 18,584 763 3,338 4,477 17,737 4,243 14,158 15,227 1976—Jan..................................................... 77,091 18,495 756 3,061 4,440 17,026 4,223 14,049 15,041 Feb.................................................... 77,339 18,545 752 3,014 4,445 16,926 4,228 14,188 15,241 Mar................................................... 77,906 18,679 759 3,103 4,462 17,028 4,246 14,307 15,322 Apr.................................................... 78,688 18,813 766 3,270 4,474 17,295 4,276 14,498 15,296 79,115 18,872 775 3,386 4,494 17,405 4,278 14,616 15,289 June.................................................. '79,900 '19,117 '795 '3,523 '4,531 '17,552 '4,344 '14,775 15,168 July................................................... '78,900 '18,820 '804 '3,578 '4,532 '17,509 '4,365 '14,778 '14,514 Aug.p................................................ 79,280 19,213 763 3,610 4,522 17,553 4,368 14,812 14,439 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

SEPTEMBER 1976 □ PRICES A53 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent o H w s o h n m ip e e r­ ­ F c a o o u n i a e d l l l tr e G a i l n c e a i c d s t ­ y o n i p a n i n e s g h r d s a ­ ­ up a k n e d ep p t o io rt n a­ Total M c ic a e a r d l e ­ s P c o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ O g s a o e t n o h rv d d e ­ s r tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1973............................ 133.1 141.4 135.0 124.3 146.7 136.0 126.4 124.9 126.8 123.8 130.2 137.7 125.2 125.9 129.0 1974............................ 147.7 161.7 150.6 130.6 163.2 214.6 145.8 140.5 136.2 137.7 140.3 150.5 137.3 133.8 137.2 1975............................ 161.2 175.4 166.8 137.3 181.7 235.3 169.6 158.1 142.3 150.6 153.5 168.6 150.7 144.4 147.4 1975—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............... 169.2 180.0 175.6 143.8 189.6 246.2 186.1 167.9 146.8 163.5 162.1 182.6 158.9 150.3 152.9 June............... 170.1 180.9 176.5 144.4 190.7 247.3 rl 87.9 168.5 146.9 165.9 162.8 183.7 159.8 150.9 153.2 July................. 171.1 182.1 177.5 145.0 192.2 248.1 189.6 168.9 146.5 167.6 163.9 185.5 160.5 151.2 153.6 Note.—Bureau of Labor Statistics index for city wage earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities All Pro­ Period m c t o i o e m d s i ­ ­ p F u r a c o r t d m s ­ c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n r u i a y n d i ­ p ­ ­ F t e u u t r r c e n . , i­ N t m m al o i l e n n i ­ c ­ ­ T e p t q r o i a o u r n n t ip a s­ ­ ­n c M e e o l i l u s a ­ s ­ erals ment1 ment 1960......................... 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1965......................... 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966......................... 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969......................... 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970......................... 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971.......................... 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972......................... 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1973......................... 134.7 176.3 148.1 125.9 123.8 143.1 134.3 110.0 112.4 177.2 122.1 132.8 121.7 115.2 130.2 115.1 119.7 1974......................... 160.1 187.7 170.9 153.8 139.1 145.1 208.3 146.8 136.2 183.6 151.7 171.9 139.4 127.9 153.2 125.5 133.1 1975......................... 174.9 186.7 182.6 171.5 137.9 148.5 245.1 181.3 150.2 176.9 170.4 185.9 161.4 139.7 174.0 141.5 147.7 1975—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 July.............. 184.3 196.9 182.6 182.6 149.0 169.8 265.0 187.0 158.2 203.7 180.5 198.7 170.9 145.7 186.9 149.2 153.8 Aug.............. 183.7 189.3 176.8 183.6 149.2 171.3 269.1 187.7 161.0 207.5 181.0 199.0 171.4 146.1 187.7 150.2 153.5 i Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 NATIONAL PRODUCT AND INCOME □ SEPTEMBER 1976 GROSS NATIONAL PRODUCT (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 II III IV I II Gross national product........................................................... 286.2 982.41,171.1 1,306.61,413.2 1,516.31,482.3 1,548.71,588.21,636.2 1,674.1 Final purchases......................................................................... 279.4 978.6 1,161.7 1,288.6 1,402.5 1,531.0 1,512.3 1,550.6 1,592.5 1,621.4 1,658.1 Pe D rs u o r n a a b l l c e o g n o su o m ds p . t . i . o ... n .. . e .. x .. p .. e .. n .. d ... i . t . u ... r .. e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 9 0 2 . . 8 0 6 8 1 4 8 . . 9 8 7 1 3 1 3 1 . . 0 2 8 1 0 2 9 3 . . 9 7 8 1 8 2 7 1 . . 5 6 9 1 7 3 3 1 . . 2 7 9 1 6 2 0 7 . . 3 0 9 1 8 3 7 6 . . 3 0 1,0 1 1 4 2 1 . .8 01,0 1 4 5 3 1 . . 6 4 1,0 1 6 5 4 5 . . 7 0 Nondurable goods.............................................................. 98.2 264.7 299.3 333.8 376.2 409.1 405.8 414.6 421.6 429.1 434.8 63.0 269.1 322.4 352.3 389.6 432.4 427.4 436.7 448.6 463.2 474.9 Gross private domestic investment....................................... 53.8 140.8 188.3 220.0 215.0 183.7 164.4 196.7 201.4 229.6 239.2 47.0 137.0 178.8 202.1 204.3 198.3 194.3 198.6 205.7 214.7 223.2 Nonresidential.................................................................. 27.1 100.5 116.8 136.0 149.2 147.1 145.8 146.1 148.7 153.4 157.9 Structures..................................................................... 9.3 37.7 42.5 49.0 54.1 52.0 51.2 51.8 52.1 53.2 54.9 Producers’ durable equipment................................ 1 1 9 7 . .8 9 6 3 2 6 . . 8 6 7 6 4 2 . . 3 0 8 66 7 . . 1 0 9 5 5 5 . . 1 1 9 5 5 1 . . 1 2 4 9 8 4 . . 6 6 9 5 4 2 . . 3 6 9 5 6 7 . . 6 0 1 6 0 1 0 . . 3 2 1 6 0 5 3 . . 3 0 Chan N g o e n in fa b rm us . i . n ... e . s .. s .. . i . n ... v .. e .. n .. t .. o .. r .. i . e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 6 8 . . . 8 0 7 3 3 3 5 . . . 1 8 7 6 9 8 0 . . . 8 4 3 6 1 1 4 7 4 . . . 3 9 7 5 1 1 2 2 0 . . . 2 7 7 - - 1 1 4 4 7 9 . . . 6 6 0 - - 3 3 4 0 1 6 . . . 2 0 7 - - 5 4 2 0 . . . 2 0 2 - - 5 4 9 4 . . . 3 5 2 5 1 1 8 4 2 . . . 8 6 7 6 1 1 2 7 6 . . . 9 3 0 Ne I t m e p x o p r o t r s t . s . .. o .. f . .. g .. o .. o .. d .. s .. . a .. n ... d .. . s .. e .. r .. v .. i . c .. e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 3 . . . 9 9 0 6 5 3 2 8 . . . 9 5 5 - 7 7 3 5 2 . . . 3 9 7 1 9 0 7 4 1 . . . 1 4 6 1 13 4 7 6 4 . . . 5 9 4 1 1 2 4 2 0 8 7 . . . 1 5 6 1 1 2 4 1 4 2 8 . . . 9 4 5 1 1 2 2 4 1 6 8 . . . 8 4 2 1 1 2 5 3 1 3 2 . . . 0 7 7 1 1 5 4 8 4 5 . . . 1 4 7 1 15 5 8 9 1 . . . 1 1 0 Government purchases of goods and services..................... 38.5 218.9 253.1 269.5 303.3 339.0 333.2 343.2 353.8 354.7 362.0 National defense............................................................. 1 1 4 8 4 . . . 7 7 0 9 2 7 5 2 3 . . . 1 6 5 1 7 2 0 3 8 2. . . 1 5 6 1 2 7 0 8 3 2 . . . 2 5 7 1 3 7 1 4 7 1 . . . 3 3 6 1 4 8 2 0 4 4 . . . 1 3 4 1 8 3 2 3 2 9 . . . 4 4 0 1 4 8 2 0 4 4. . . 6 6 0 1 4 8 3 3 7 0 . . . 1 2 4 1 4 8 2 2 6 9 . . . 9 2 2 1 4 8 3 4 6 1 . . . 9 2 2 19.8 123.2 151.0 167.3 191.6 214.5 210.9 218.6 223.4 225.5 230.9 Gross national product in 1972 dollars............................... 533.5 1,075.3 1,171.1 1,235.01,214.01,191.7 1,177.1 1,209.3 1,219.2 1,246.3 1,259.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey of Current Business, Jan. 1976. NATIONAL INCOME (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 II III IV I II National income....................................................................... 236.2 798.4 951.9 1,064.61,135.7 1,207.6 1,182.7 1,233.4 1,264.6 1,304.7 1,336.3 Compensation of employees................................................... 154.8 609.2 715.1 799.2 875.8 928.8 912.9 935.2 963.1 994.41,017.2 Wages and salaries............................................................. 147.0 546.5 633.8 701.2 764.5 806.7 792.8 811.7 836.4 861.5 881.1 P G r o i v v e a r te n . m .... e . n ... t . .. a .. n .. d .. .. g .. o .. v .. t . , . .. e .. n .. t .. e .. r . p ... r .. i . s .. e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2 2 4 . . 6 4 4 1 3 1 0 6 . . 5 0 4 1 9 3 6 7 . . 2 6 5 1 5 4 2 8 . . 6 6 6 1 0 6 4 0 . . 1 4 6 1 3 7 0 5 . . 8 8 6 1 1 7 9 3 . .8 0 6 1 3 7 4 7 . . 4 3 6 1 5 8 4 2 . . 1 2 6 1 7 8 6 5 . . 1 4 6 1 9 8 2 8 . . 4 7 Supplements to wages and salaries.................................. 7.8 62.7 81.4 98.0 111.3 122.1 120.1 123.5 126.7 132.9 136.2 Employer contributions for social insurance............ 4.2 30.7 39.4 49.3 55.8 59.7 58.7 60.2 61.6 65.9 67.1 3.7 32.0 42.0 48.7 55.5 62.5 61.4 63.3 65.2 67.1 69.0 Proprietors' income with inventory valuation and capital consumption adjustments...................................... 38.4 65.1 76.1 92.4 86.9 90.2 86.8 95.5 97.2 93.2 100.3 Business and professional............................................. 24.9 51.2 58.1 60.4 61.1 65.3 62.7 66.3 69.0 71.4 72.8 Farm.................................................................................. 13.5 13.9 18.0 32.0 25.8 24.9 24.1 29.2 28.3 21.9 27.5 Renta a l d j in u c st o m m e e n o t. f . .. p .. e .. r . s .. o .. n .. s .. . w ... i . t . h ... . c .. a .. p .. i . t .. a .. l . .. c . o .. n ... s . u .. m .... p .. t . i .. o .. n ........... 7.1 18.6 21.5 21.6 21.0 22.4 22.3 22.4 22.9 23.3 23.1 Corporate profits and inventory valuation adjustment and without capital consumption adjustment................... 37.6 66.4 89.6 97.2 87.8 103.1 97.9 117.9 119.1 129.6 130.7 Profits before tax................................................................. 42.6 71.5 96.2 115.8 127.6 114.5 105.8 126.9 131.3 141.1 145.3 Profits tax liability......................................................... 17.9 34.5 41.5 48.7 52.4 49.2 44.8 54.8 57.2 61.4 64.1 Pr D of i i v ts id a e f n te d r s . t . a .. x ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284..87 3 2 7 2. . 9 0 5 2 4 4 . . 6 6 6 2 7 7 . . 1 8 3 7 0 5 . . 8 2 6 3 5 2. . 1 3 6 3 1 1 . .9 0 3 72 2 . . 1 6 3 7 2 4. . 1 2 3 7 3 9 . . 1 7 8 3 1 4 . . 1 4 Undistributed profits................................................. 15.9 14.1 30.0 39.3 44.4 33.2 29.1 39.5 41.9 46.6 46.8 Inventory valuation adjustment...................................... -5.0 -5.1 -6.6 -18.6 -39.8 -11.4 -7.8 -9.0 -12.3 -11.5 -14.6 Capital consumption adjustment.................................... -4.0 1.5 2.5 1.9 -3.0 -11.6 -11.4 -12.6 -13.5 -14.5 -15.4 Net interest............................................................................... 2.3 37.5 47.0 52.3 67.1 74.6 74.0 74.9 75.8 78.6 80.3 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

SEPTEMBER 1976 □ NATIONAL PRODUCT AND INCOME A55 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1975 1976 Item 1950 1970 1972 1973 1974 1975 II III IV I II 286.2 982.41,171.1 1,306.61,413.2 1,516.3 1,482.3 1,548.7 1,588.2 1,636.2 1,674.1 Less: Capital consumption allowances with capital consumption adjustment...................................... 23.9 90.8 105.4 117.7 137.7 161.4 158.7 164.4 169.5 173.6 177.7 Indirect business tax and nontax liability............... 23.4 94.0 111.0 120.2 128.4 138.7 136.5 141.5 144.1 144.9 148.2 Business transfer payments...................................... .8 4.0 4.7 5.4 5.6 6.3 6.2 6.4 6.6 6.8 7.0 Statistical discrepancy................................................ 2.0 -2.1 1.7 2.6 6.6 4.4 .1 5.1 6.1 7.2 5.7 Plus: Subsidies less current surplus of government enterprises................................................................ .1 2.7 3.6 3.9 .8 2.0 1.9 2.1 2.7 .9 .7 Equals: National income...................................................... 236.2 798.4 951.91,064.6 1,135.71,207.6 1,182.7 1,233.4 1,264.6 1,304.7 1,336.3 Less: Corporate profits with inventory valuation and capital consumption adjustments....................... 33.7 67.9 92.1 99.1 84.8 91.6 86.6 105.3 105.6 115.1 115.3 Net interest................................................................... 2.3 37.5 47.0 52.3 67.1 74.6 74.0 74.9 75.8 78.6 80.3 Contributions for social insurance......................... 7.1 58.7 73.6 91.5 103.4 109.7 108.1 110.3 112.6 119.3 121.4 Wage accruals less disbursements........................... Plus: Government transfer payments to persons.......... 14.4 75.9 99.4 113.5 134.6 168.9 169.3 172.7 176.0 181.8 180.6 Personal interest income........................................... 8.9 64.3 74.6 84.1 101.4 110.7 109.0 111.0 114.4 118.0 120.7 Dividends..................................................................... 8.8 22.9 24.6 27.8 30.8 32.1 31.9 32.6 32.2 33.1 34.4 Business transfer payments...................................... .8 4.0 4.7 5.4 5.6 6.3 6.2 6.4 6.6 6.8 7.0 Equals: Personal income....................................................... 226.1 801.3 942.5 1,052.41,153.3 1,249.7 1,230.3 1,265.5 1,299.7 1,331.3 1,362.0 Less: Personal tax and nontax payments......................... 20.6 115.3 141.2 150.8 170.4 168.8 142.2 174.0 179.8 183.8 189.5 Equals: Disposable personal income.................................... 205.5 685.9 801.3 901.7 982.9 1,080.9 1,088.2 1,091.5 1,119.9 1,147.6 1,172.5 Less: Personal outlays.......................................................... 194.7 635.4 751.9 831.3 910.7 996.9 983.6 1,011.1 1,036.2 1,068.0 1,089.6 Personal consumption expenditures................... 192.0 618.8 733.0 809.9 887.5 973.2 960.3 987.3 1,012.0 1,043.6 1,064.7 Interest paid by consumer to business............... 2.3 15.5 17.9 20.2 22.2 22.8 22.4 22.8 23.3 23.4 23.9 Personal transfer payments to foreigners (Net) .4 1.1 1.0 1.3 1.0 .9 .9 .9 .9 1.0 1.0 Equals: Personal saving......................................................... 10.8 50.6 49.4 70.3 72.2 84.0 104.5 80.5 83.7 79.5 82.9 Disposable personal income in (1972) dollars................... 361.9 741.6 801.3 854.7 840.8 855.5 869.7 857.1 867.5 880.4 890.5 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Total personal income. 1153.31249.71252.01267.51277.1 1290.81300.21308.21320.8 1331.41341.91352.51362.9 1370.41384.3 Wage and salary disbursements......... 765.0 806.7 802.9 813.0 819.1 828.5 836.6 844.0 854.2 861.4 868.8 876.9 883.3 883.1 891.3 Commodity-producing industries.. 273.9 275.3 272.5 276.4 279.8 282.9 285.7 288.6 292.8 294.9 298.4 301.7 303.5 303.4 305.4 Manufacturing only...................... 211.4 211.7 209.2 212.9 215.5 218.1 220.1 222.8 227.2 229.4 232.2 234.8 235.8 236.2 237.3 Distributive industries...................... 184.4 195.6 194.4 197.9 198.2 200.9 202.5 203.5 206.5 208.8 209.8 212.3 213.9 212.4 215.2 Service industries............................... 145.9 159.9 160.0 161.6 162.4 163.6 166.0 168.8 170.8 172.4 174.1 175.3 177.2 177.7 180.1 Government........................................ 160.9 175.8 176.0 177.1 178.8 181.1 182.4 183.2 184.2 185.4 186.6 187.6 188.7 189.6 190.5 Other labor income................................ 55.5 62.5 62.6 63.3 63.9 64.5 65.2 65.8 66.4 67.1 67.7 68.4 69.0 69.7 70.5 Proprietors’ income with inventory valuation and capital consumption adjustments.......................................... 86.9 90.2 94.0 96.1 96.4 97.5 97.1 97.2 95.2 92.4 92.2 96.0 100.0 105.0 103.6 Business and professional................. 61.1 65.3 65.4 66.5 67.0 68.3 68.7 69.9 70.6 71.3 72.2 72.7 72.5 73.4 74.0 Farm..................................................... 25.8 24.9 28.6 29.6 29.4 29.2 28.4 27.3 24.6 21.1 20.0 23.3 27.5 31.6 29.6 Rental income of persons with capital consumption adjustment................... 21.0 22.4 22.5 22.5 22.4 22.9 22.9 22.9 23.2 23.4 23.3 23.3 23.4 22.7 23.5 Dividends.......................... 30.8 32.1 32.3 32.6 32.9 32.9 32.9 30.8 32.9 33.3 33.0 33.4 33.9 35.9 35.2 Personal interest income. 101.4 110.7 110.1 110.9 112.1 113.2 114.4 115.5 116.7 117.9 119.3 120.0 120.7 121.5 122.8 Transfer payments........... 140.3 175.2 177.3 179.3 180.7 182.1 182.1 183.4 185.3 189.2 191.3 188.7 187.1 186.8 192.5 Less: Personal contributions for social insurance...................................... 47.6 50.0 49.8 50.2 50.4 50.7 51.0 51.4 53.1 53.4 53.7 54.1 54.4 54.3 54.9 Nonagricultural income. 1117.31213.41212.21226.5 1236.1 1249.91260.01269.1 1284.41298.61310.11317.31323.31326.61342.5 Agricultural income 36.0 36.3 39.8 41.0 41.0 40.9 40.2 39.1 36.4 32.8 31.8 35.2 39.6 43.8 41.9 Note.—Dept, of Commerce estimates. Monthly data seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 FLOW OF FUNDS □ SEPTEMBER 1976 SUMMARY OF FUNDS RAISED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 1976 Transaction category, or sector 1967 1968 1969 1970 1971 1972 1973 1974 1975 HI H2 HI Credit market funds raised by nonfinancial sectors 1 Total funds raised by nonfinancial sectors............ 83.8 98.0 93.9 100.6 150.9 176.8 197.6 187.1 211.6 185.1 238.1 245.6 1 2 Excluding equities.................................... 81.3 98.0 90.0 94.8 139.5 166.3 190.0 183.3 201.6 174.6 228.7 232.3 2 3 U.S. Government......................................... 13.0 13.6 -3.7 11.9 24.7 15.2 8.3 12.0 85.2 81.0 89.4 74.6 3 4 Public debt securities.................................. 8.9 10.5 -1.3 12.9 26.0 14.3 7.9 12.0 85.8 82.2 89.5 74.7 4 5 Agency issues and mortgages....................... 4.1 3.1 -2.4 -1.0 -1.3 1.0 .4 * -.6 -1.2 -.1 -.1 5 6 All other nonfinancial sectors........................... 70.8 84.5 97.5 88.7 126.2 161.6 189.4 175.1 126.4 104.1 148.6 171.0 6 7 Corporate equities..................................... 2.4 * 3.9 5.8 11.5 10.5 7.7 3.8 9.9 10.5 9.4 13.3 7 8 Debt instruments........................................ 68.3 84.5 93.7 83.0 114.7 151.1 181.7 171.3 116.4 93.6 139.2 157.8 8 9 Private domestic nonfinancial sectors 66.7 81.6 93.9 86.0 121.0 157.6 183.1 159.8 113.5 95.5 131.4 155.9 9 10 Corporate equities.................................. 2.4 -.2 3.4 5.7 11.4 10.9 7.9 4.1 9.9 10.3 9.5 12.9 10 11 Debt instruments..................................... 64.4 81.8 90.5 80.3 109.6 146.7 175.3 155.7 103.6 85.2 121.9 142.9 11 12 Debt capital instruments....................... 46.0 51.6 52.9 60.2 86.7 102.7 106.7 101.2 101.5 97.0 106.0 116.8 12 13 State and local obligations.................. 7.8 9.5 9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 17.9 13 14 Corporate bonds............................... 14.7 12.9 12.0 19.8 18.8 12.2 9.2 19.7 27.2 33.4 21.0 24.7 14 15 Home mortgages............................... 13.3 16.9 18.4 14.3 28.5 42.5 46.4 34.6 41.4 34.5 48.3 56.7 15 16 Multifamily residential mortgages......... 3.6 3.5 4.9 6.9 9.7 12.7 10.4 7.0 -.5 -1.3 .3 .8 16 17 Commercial mortgages....................... 4.7 6.6 5.8 7.1 9.8 16.4 18.9 15.1 10.9 8.6 13.2 10.4 17 18 Farm mortgages............................... 2.0 2.2 1. .8 2.4 3.6 5.5 5.1 5.2 5.6 4.7 6.3 18 19 Other debt instruments......................... 18.4 30.2 37.6 20.1 22.8 44.0 68.6 54.6 2.1 -11.8 16.0 26.2 19 20 Consumer credit............................... 4.5 10.0 10.4 5.9 11.6 18.6 21.7 9. 8.5 1.1 16.0 19.4 20 21 Bank loans n.e.c............................... 9.6 13.8 15.5 6.7 6.5 18.1 34. 26.2-14.0 -23.2 -4 -13.6 21 22 Open market paper........................... 1.7 1.5 1. 2.6 -.4 .8 2.5 6.8 -2.2 -.2 -4.2 8.5 22 23 Other............................................ 2.6 5.0 9.9 5.0 5.1 6.5 9.6 11. 9.7 10.4 9.0 11.9 23 24 By borrowing sector................................ 66.7 81.6 93.9 86.0 121.0 157.6 183.1 159.8 113.5 95.5 131.4 155.9 24 25 State and local governments.................. 7.9 9. 10.7 11.3 17. 15.2 14.8 18.1 15.1 14.2 16.1 16.4 25 26 Households........................................ 22.2 31.7 34.1 25.2 42.0 64.7 73.5 45.2 50.3 40.0 60.6 74.4 26 27 Farm................................................ 3.3 2.8 3.1 2.3 4.5 5.8 9.7 7.9 9.3 9.4 9.3 10.7 27 28 Nonfarm noncorporate......................... 4.4 5.3 7.5 5.7 10.4 13.1 12.3 6.7 1.2 -.8 3.3 5.7 28 29 Corporate.......................................... 28.9 32.0 38.6 41.5 46.3 58.8 72.9 81.9 37.4 32.8 42.1 48.7 29 30 Foreign................................................ 4.0 2.8 3.7 2.7 5.2 4.0 6.2 15.3 12.9 8.6 17.2 15.1 30 31 Corporate equities.................................. .1 .2 .5 .1 * -.4 -.2 -.2 * .1 -.1 .3 31 32 Debt instruments.................................... 4.0 2.7 3.2 2.7 5.2 4.4 6 15.5 12.9 8.5 17.3 14.8 32 33 Bonds.............................................. 1.2 1.1 1.0 .9 .9 1.0 1.0 2.1 6.2 5.7 6.7 7.6 33 34 Bank loans n.e.c................................. -.3 -.5 -.2 -.3 2.1 3.0 2.8 4.7 4.0 .6 7.4 4.0 34 35 Open market paper............................ .5 -.2 .3 .8 .3 -1.0 .9 7.1 -.1 -1.2 1.0 .4 35 36 U.S. Government loans....................... 2.6 2.2 2.1 1.3 1.8 1.5 1.7 1.6 2 3.4 2.2 2.8 36 37 Memo: U.S. Govt, cash balance..................... 1.2 -1.2 .5 2.8 3.2 -.3 -1.7 -4.6 2.9 .5 5.2 10.5 37 Totals net of changes in U.S. Govt, cash balances 38 Total funds raised....................................... 82.6 99.2 93.4 97.8 147.7 177.1 199.3 191.7 208.7 184.5 232.9 235.1 38 39 By U.S. Government................................. 11.8 14.8 -4.1 9.1 21.6! 15 9.9 16.6 82.3 80.4 84.2 64.1 39 Credit market funds raised by financial sectors 1 Total funds raised by financial sectors.................. 2.0 17.2 35.2 17.8 18.0 29.1 56.7 44.6 15.2 14.3 16.1 24.2 1 2 Sponsored credit agencies............................. .1 4.0 9.5 9.8 5.9 8.4 19.9 23.1 14.1 14.0 14.2 16.2 2 3 U.S. Government securities........................ -.6 3.2 9.1 8.2 1.1 3.5 16.3 16.6 2.3 1.4 3.3 3.9 3 4 Mortgage pool securities........................... .7 .5 .7 1.6 4.8 4.9 3.6 5.8 10.9 11.5 10.2 12.3 4 5 Loans from U.S. Government..................... — .1 .2 -.3 .7 .9 1.1 .6 * 5 6 2.0 13.2 25.8 8.0 12.1 20.7 36.8 21.5 1.1 .3 2.0 8.0 6 7 Corporate equities.................................... 3.1 6.5 6.3 4.8 3.5 2.8 1.5 1.0 1.0 1.1 1.0 .3 7 8 -1.1 6.7 19.5 3.2 8.6 18.0 35.3 20.5 .1 -.8 1.0 7.7 8 9 .7 .4 .8 2.7 3.8 5.1 3.5 2.1 2.9 2.5 3.3 6.1 9 10 1.0 .4 .2 .7 2.1 1.7 -1.2 -1.3 2.3 1.2 3.4 1.2 10 11 Bank loans n.e.c.................................... -2.0 1.5 1.5 * 3.5 6.8 14.0 7.5 -3.9 -4.7 -3.2 -3.2 11 12 Open market paper and RP’s.................. 1.8 3.4 12.9 -1.5 1.9 4.4 11.8 5.5 2.8 7.6 -1.9 5.9 12 13 Loans from FHLB’s.............................. -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -7.3 -.6 -2.3 13 14 Total funds raised, by sector............................. 2.0 17.2 35.2 17.8 18.0 29.1 56.7 44.6 15.2 14.3 16.1 24.2 14 15 -.6 3.5 8.8 8.2 1.1 3.5 16.3 17.3 3.2 2.5 4.0 3.9 15 16 Mortgage pools.......................................... .7 .5 .7 1.6 4.8 4.9 3.6 5.8 10.9 11.5 10.2 12.3 16 17 Private financial sectors................................ 2.0 13.2 25.8 8.0 12.1 20.7 36.8 21.5 1.1 .3 2.0 8.0 17 18 Commercial banks.................................... * .8 2.4 * 3.4 4.8 8.1 .5 1.7 5.7 -2.3 8.4 18 19 Bank affiliates.......................................... 4.3 — 1.9 — .4 .7 2.2 3.5 .3 .9 — .3 — 1.3 19 20 * .1 .2 .1 1.6 .8 5.1 2.9 -.3 -.9 .2 -1.5 20 21 Savings and loans associations.................... -1.7 1.1 4.1 1.8 -.1 2.0 6.0 6.3 -2.1 -7.8 3.6 -.7 21 22 Other insurance companies........................ .1 .2 .5 .4 .6 .5 .5 .9 .8 .8 .8 .7 22 23 .6 4.4 8.0 2.1 2.5 6.2 9.4 4.5 1.1 -.8 3.0 8.0 23 24 REIT’s................................................... * .7 1.4 2.7 3.1 6.3 6.5 1.1 -2.4 -1.6 -3.1 -3.4 24 25 Open end investment companies.................. 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.4 25 26 Money market funds................................. 2.4 1.3 2.6 * — .7 26 Total credit market funds raised, all sectors, by type 1 85.8 115.3 129.1 118.3 169.0 206.0 254.3 231.7 226.8 199.3 254.2 269.8 1 2 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.4 2 3 2.5 .6 5.2 7.7 13.7 13.8 10.4 5.4 10.2 10.0 10.3 15.0 3 4 Debt instruments......................................... 80.2 108.7 119.0 107.8 154.0 192.7 245.2 226.8 215.8 187.8 243.8 256.2 4 5 U.S. Government securities........................ 13.2 17.4 6.2 21.7 30.7 23.7 28.3 34.5 98.5 93.7 103.2 90.7 5 6 State and local obligations......................... 7.8 9.5 9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 17.9 6 7 Corporate and foreign bonds...................... 16.6 14.4 13.8 23.3 23.5 18.4 13.6 23.9 36.3 41.6 31.0 38.4 7 8 Mortgages.............................................. 24.5 29.5 31.1 29.8 52.4 76.7 79.9 60.5 59.2 48.7 69.8 75.4 8 9 4.5 10.0 10.4 5.9 11.6 18.6 21.7 9.8 8.5 1.1 16.0 19.4 9 10 Bank loans n.e.c....................................... 7.3 14.8 16.8 6.3 12.1 27.8 51.6 38.4-13.9 -27.3 -.6 -12.8 10 11 Open market paper and RP’s.................... 3.9 4.8 15.1 1.9 1.8 4.1 15.2 19.4 .5 6.2 -5.1 14.9 11 12 Other loans............................................. 2.5 8.3 15.8 7.7 4.2 8.0 18.5 20.8 9.4 7.6 11.2 12.4 12 Note.—Full statements for sectors and transaction types quarterly, and Flow of Funds Section, Division of Research and Statistics, Board of annually for flows and for amounts outstanding, may be obtained from Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ FLOW OF FUNDS A57 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1975 1976 Transaction category, or sector 1967 1968 1969 1970 1971 1972 1973 1974 1975 HI H2 HI 1 Total funds advanced in credit markets to non- 81.3 98.0 90.0 94.8 139.5 166.3 190.0 183.3 201.6 174.6 228.7 232.3 1 By public agencies and foreign 2 12.0 13.0 16.5 29.2 43.4 19.8 34.2 51.0 44.2 50.1 38.2 51.5 2 3 U.S. Government securities................................... 6.9 3.3 .5 15.1 34.4 7.6 9.6 11.9 22.5 32.6 12.4 26.7 3 4 2.6 3.3 5.1 6.5 7.0 7.0 8.2 14.7 16.7 15.9 17.6 9.3 4 5 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -7.3 -.6 -2.3 5 6 5.2 5.5 6.9 6.2 4.6 5.1 9.2 17.8 8.9 8.9 8.8 17.8 6 Totals advanced, by sector 7 U.S. Government................................................... 4.7 5.2 3.1 2.8 2.8 1.8 2.8 8.1 15.7 15.7 15.7 4.8 7 8 Sponsored credit agencies...................................... .6 3.8 9.4 11.1 5.2 9.2 21.4 25.6 15.1 15.9 14.2 18.1 8 9 4.8 3.7 4.2 5.0 8.9 .3 9.2 6.2 8.5 6.9 10.1 13.7 9 10 2.0 .3 -.3 10.3 26.4 8.4 .7 11.2 4.8 11.6 -1.9 14.9 10 11 .1 4.0 9.5 9.8 5.9 8.4 19.9 23.1 14.1 14.0 14.2 16.2 11 Private domestic funds advanced 12 69.3 89.0 82.9 75.4 102.0 154.9 175.7 155.3 171.6 138.4 204.7 197.0 12 13 U.S. Government securities................................... 6.3 14.1 5.6 6.6 -3.7 16.1 18.7 22.6 76.0 61.2 90.8 64.0 13 14 State and local obligations.................................... 7.8 9.5 9.9 11.2 17.5 15.4 16.3 19.6 17.3 16.2 18.4 17.9 14 15 Corporate and foreign bonds................................ 16.0 13.8 12.5 20.0 19.5 13.1 10.0 20.9 32.8 38.9 26.7 31.3 15 16 Residential mortgages............................................ 14.3 17.0 18.1 14.6 31.1 48.0 48.5 26.9 24.1 17.4 30.8 48.3 16 17 Other mortgages and loans................................... 22.4 35.5 40.8 24.4 35.0 62.3 89.3 71.9 17.4 -2.5 37.3 33.3 17 18 -2.5 .9 4.0 1.3 -2.7 * 7.2 6.7 -4.0 -7.3 -.6 -2.3 18 Private financial intermediation 19 Credit market funds advanced by private financial institutions............................................................ 63.6 75.9 57.4 77.0 109.7 149.4 163.8 126.2 116.7 99.2 134.3 132.4 19 20 35.8 38.7 18.6 35.0 50.6 70.5 86.5 64.6 27.6 13.6 41.5 21.3 20 21 15.0 15.4 14.6 17.4 39.1 47.2 36.0 27.0 52.0 51.3 52.7 66.7 21 22 Insurance and pension funds................................. 12.9 13.8 13.3 17.1 14.2 17.8 23.8 30.1 38.9 36.4 41.3 42.0 22 23 -.1 8.0 10.8 7.5 5.9 13.8 17.4 4.5 -1.7 -2.2 -1.3 2.4 23 24 Sources of funds.......................................................... 63.6 75.9 57.4 77.0 109.7 149.4 163.8 126.2 116.7 99.2 134.3 132.4 24 25 Private domestic deposits...................................... 49.8 45.9 2.3 60.7 89.4 96.9 86.4 73.4 91.5 90.6 92.3 90.6 25 26 -1.1 6.7 19.5 3.2 8.6 18.0 35.3 20.5 .1 -.8 1.0 7.7 26 27 Other sources.......................................................... 14.9 23.3 35.6 13.1 11.6 34.5 42.1 32.2 25.1 9.3 41.0 34.1 27 28 2.3 2.6 9.6 -8.1 -3.9 5.3 6.9 14.5 -.4 -5.7 5.0 -.8 28 29 Treasury balances............................................... .2 -.2 * 2.9 2.2 .7 -1.0 -5.1 -1.7 -3.5 .1 3.1 29 30 Insurance and pension reserves......................... 11.4 11.4 10.8 13.3 8.6 11.6 18.4 26.0 29.9 27.4 32.5 31.5 30 31 Other, net............................................................ 1.0 9.5 15.1 5.1 4.7 16.8 17.8 -3.2 -2.7 -9.0 3.5 .2 31 Private domestic nonfinancial investors 32 4.6 19.8 45.0 1.6 .9 23.6 47.2 49.6 55.0 38.5 71.4 72.4 32 33 U.S. Government securities................................... -1.1 8.6 17.5 -7.1 -10.8 4.2 19.4 17.9 23.6 4.4 42.8 28.6 33 34 State and local obligations.................................... -2.6 -.1 8.2 -1.3 .5 3.1 7.5 12.2 9.7 10.5 8.9 9.2 34 35 3.8 3.8 5.4 9.5 8.3 4.2 .9 5.3 10.1 12.6 7.5 11.8 35 36 Commercial paper.................................................. 1.8 4.2 10.0 -3.1 -.1 3.0 12.5 6.2 4.3 6.0 2.7 6.9 36 37 Other....................................................................... 2.6 3.3 4.0 3.6 3.1 9.1 6.9 8.1 7.2 5.0 9.4 15.8 37 38 Deposits and currency............................................... 51.8 48.5 5.1 64.2 92.8 101.3 90.3 79.7 97.7 96.0 99.4 94.9 38 39 Time and saving accounts..................................... 38.8 33.7 -2.2 55.3 79.1 83.7 76.2 67.4 84.8 75.0 94.6 81.8 39 40 Large negotiable CD’s....................................... 4.3 3.5 -13.7 15.0 7.7 8.7 18.4 23.6 -9.7 -22.3 2.9 -23.1 40 41 Other at commercial banks............................... 17.9 17.2 3.1 23.6 31.8 29.7 29.4 21.4 35.4 34.4 36.4 39.0 41 42 At savings institutions........................................ 16.6 13.0 8.4 16.6 39.6 45.4 28.4 22.4 59.2 63.0 55.4 65.9 42 43 Money..................................................................... 13.0 14.8 7.3 8.9 13.7 17.6 14.1 12.3 12.8 21.0 4.7 13.1 43 44 Demand deposits................................................ 11.0 12.3 4.5 5.4 10.4 13.2 10.2 6.0 6.6 15.6 -2.4 8.8 44 45 Currency............................................................. 2.0 2.5 2.8 3.5 3.4 4.4 3.9 6.3 6.2 5.3 7.1 4.3 45 46 Total of credit market instr., deposits, and currency. 56.5 68.3 50.2 65.8 93.8 124.9 137.5 129.3 152.6 134.5 170.7 167.2 46 47 Private support rate (in per cent)......................... 14.8 13.3 18.4 30.8 31.1 11.9 18.0 27.8 21.9 28.7 16.7 22.2 47 48 Private financial intermediation (in per cent)----- 91.7 85.3 69.2 102.1 107.5 96.4 93.2 81.2 68.0 71.6 65.6 67.2 48 49 Total foreign funds................................................ 4.3 2.9 9.4 2.2 22.5 13.7 7.6 25.7 4.5 6.0 3.0 14.2 49 Corporate equities not included above 1 Total net issues............................................................ 5.6 6.5 10.1 10.5 15.0 13.3 9.2 4.9 11.0 11.5 10.4 13.6 1 2 Mutual fund shares................................................ 3.0 5.9 4.9 2.8 1.3 -.5 -1.2 -.5 .8 1.5 .1 -1.4 2 3 Other equities.......................................................... 2.5 .6 5.2 7.7 13.7 13.8 10.4 5.4 10.2 10.0 10.3 15.0 3 4 Acquisitions by financial institutions....................... 9.3 11.3 13.0 10.6 17.8 15.3 13.3 5.5 8.3 9.2 7.4 11.5 4 5 Other net purchases -3.7 -4.8 -2.9 -.1 -2.9 -2.1 -4.1 -.7 2.6 2.3 3.0 2.1 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 45. Mainly an offset to line 9. security issues backed by mortgage pools. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 47. Line 2/line 1. Also sum of lines 27, 32, 39, and 44. 48. Line 19/line 12. 17. Includes farm and commercial mortgages. 49. Lines 10 plus 28. 25. Lines 39 plus 44. 26. Excludes equity issues and investment company shares. Includes Corporate equities line 18. Lines 1 and 3. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, bank borrowings from foreign 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 □ SEPTEMBER 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 71,410 98,310 107,133 27,020 25,848 26,610 27,655 26,939 2 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 -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 Remittances, 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 22 -3,598 11,650 1,416 3,905 3,241 3,085 -80 12 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 -33 -1,265 -466 -307 -7 -95 -57 -237 18 233 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 -5,980 -19,494 -13,238 -3,702 -3,820 -429 -5,287 -3,714 21 -933 -1,183 -2,351 -441 -381 -586 -943 -245 22 -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 -396 -474 -384 22 55 -139 -322 -84 25 -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 -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 30 582 902 891 494 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 4,702 16,017 653 -2,459 776 1,634 702 881 35 227 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 1,035 1,615 78 322 58 -141 -161 24 38 Long-term.................................................................................. 298 -212 313 357 77 -99 -22 -170 39 737 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 -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 -2,107 4,557 4,602 2,418 168 1,148 868 3,217 Memoranda: Changes in official assets: 47 269 -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 1,202 56 177 50 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 Commerce, 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

SEPTEMBER 1976 o FOREIGN TRADE; U.S. RESERVE ASSETS A59 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1973 1974 1975 1976 1973 19743 1975 1976 1973 19743 1975 1976 Month: Jan__ 4,955 7,150 9,374 9,103 5,244 6,498 9,633 9,176 -289 +652 -259 -73 Feb... 5,070 7,549 8,756 8,800 5,483 7,318 7,927 8,941 -413 +231 +829 -141 Mar... 5,311 7,625 8,681 8,956 5,414 7,742 7,467 9,607 -103 -117 + 1,215 -651 Apr... 5,494 8,108 8,649 9,394 5,360 8,025 7,959 9,596 + 133 +83 +690 -202 May.. 5,561 7,652 8,222 9,578 5,703 8,265 7,263 9,182 -142 -612 +958 + 396 June.. 5,728 8,317 8,716 9,716 5,775 8,577 7,103 10,094 -47 -260 + 1,613 -377 July... 5,865 8,307 8,871 10,022 5,829 8,922 7,832 10,849 + 37 -615 + 1,039 -827 Aug... 6,042 8,379 8,980 6,011 9,267 7,877 + 32 -888 + 1,103 Sept... 6,420 8,399 9,104 5,644 8,696 8,196 +776 -297 +908 Oct.. . 6,585 8,673 9,226 5,996 8,773 8,169 + 589 -100 + 1,056 Nov... 6,879 8,973 9,409 6,684 8,973 8,201 + 195 + 1,208 Dec... 6,949 8,862 9,250 6,291 9,257 8,522 +658 -395 +728 Quarter: I 15,336 22,325 26,811 26,859 16,140 21,558 25,026 27,723 -804 +767 + 1,785 -864 I I 16,783 24,077 25,586 28,688 16,839 24,867 22,325 28,872 -56 -790 + 3,261 -184 m.... 18,327 25,085 26,955 17,483 26,885 23,904 +844 -1,800 + 3,051 iv.... 20,413 26,508 27,885 18,972 27,003 24,892 + 1,441 -495 +2,993 Year4... 70,823 97,908 107,130 69,476 100,251 96,116 + 1,347 -2,343 11,014 1 Exports of domestic and foreign merchandise (f.a.s. value basis); basis. For calendar year 1974, the f.a.s. import transactions value was excludes Department of Defense shipments under military grant-aid $100.3 billion, about 0.7 per cent less than the corresponding Customs programs. import value of $101.0 billion. 2 General imports, which includes imports for immediate consumption 4 Sum of unadjusted figures. plus entries into bonded warehouses. See also note 3. 3 Beginning with 1974 data, imports are reported on an f.a.s. trans­ Note.—Bureau of the Census data. Details may not add to totals be­ actions value basis; prior data are reported on a Customs import value cause of rounding. 3. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo u e C c r r r i o 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 F r io v n e SDR’s 3 E m n o d n t o h f Total Tot G al o 2 ld s T to r c e k asury v c fo u e C c r r r o i t e 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’s 3 1961.. 18,753 16,947 16,889 116 1,690 1975— 1962.. 17,220 16,057 15,978 99 1,064 16,117 11,599 11,599 28 2,169 2,321 1963.. 16,843 15,596 15,513 212 1,035 16,291 11,599 11,599 247 2,144 2,301 1964.. 16,672 15,471 15,388 432 769 16,569 11,599 11,599 413 2,192 2,365 16,592 11,599 11,599 423 2,234 2,336 1965.. 15,450 13,806 13,733 781 863 16,226 11,599 11,599 80 2,212 2,335 1966.. 14.882 13,235 13,159 1,321 326 1967.. 14,830 12,065 11,982 2,345 420 1976— 1968.. 15,710 10,892 10.367 3,528 1,290 16,622 11,599 11,599 333 2,314 2,376 1969.. 416,964 11,859 10.367 4 2,781 2,324 Feb 16,661 11,599 11,599 296 2,390 2,376 16,941 11,599 11,599 571 2,420 2,351 1970.. 14,487 11,072 10,732 629 1,935 851 17,437 11,598 11,598 936 2,578 2,325 1971.. 512,167 10,206 10,132 5 276 585 1,100 May. ... 17,958 11,598 11,598 938 3,113 2,309 19726. 13,151 10,487 10,410 241 465 1,958 June.... 18.477 11,598 11,598 1,365 3,198 2,316 19737 . 14,378 11.652 11,567 552 2,166 July.... 18^246 11,598 11,598 864 3,466 2,318 1974. . 15.883 11.652 11,652 1,852 2,374 Aug....... 818,586 11,598 11,598 845 8 3,818 8 2,325 1 Includes (a) gold sold to the United States by the IMF with the right total gold stock is $828 million (Treasury gold stock $822 million), reserve of repurchase, and (b) gold deposited by the IMF to mitigate the impact position in IMF $33 million, and SDR’s $155 million. on the U.S. gold stock of foreign purchases for the purpose of making 7 Total reserve assets include an increase of $1,436 million resulting gold subscriptions to the IMF under quota increases. For corresponding from change in par value of the U.S. dollar on Oct. 18, 1973; of which, liabilities, see Table 5. total gold stock is $1,165 million (Treas. gold stock $1,157 million), 2 Includes gold in Exchange Stabilization Fund. reserve position in IMF $54 million, and SDR’s $217 million. 3 Includes allocations by the IMF of Special Drawing Rights as follows: 8 Beginning July 1974, the IMF adopted a technique for valuing the $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 SDR based on a weighted average of exchange rates for the currencies million on Jan. 1, 1972; plus net transactions in SDR’s. of 16 member countries. The U.S. SDR holdings and reserve position 4 Includes gain of $67 million resulting from revaluation of the German in the IMF are also valued on this basis beginning July 1974. At valua­ mark in Oct. 1969, of which $13 million represents gain on mark holdings tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end at time of revaluation. of August amounted to $2,435 million, reserve position in IMF, $3,583 5 Includes $28 million increase in dollar value of foreign currencies million, and total U.S. reserves assets, $18,800. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 GOLD RESERVES □ SEPTEMBER 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—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 6,478 11,599 231 169 312 882 1,781 927 97 76 103 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Dec................ 49,740 6,478 11,599 31,665 231 169 312 882 1,781 927 97 76 103 1976—Jan ............... 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Feb................ 6,478 11,599 231 169 312 882 1,781 927 97 76 103 Mar............... '49,490 6,478 11,599 '31,415 231 169 312 882 1,781 916 94 76 103 Apr. ............ 6,478 11,598 231 169 312 882 1,781 916 94 76 103 May............... 6,478 11,598 231 169 312 882 1,781 916 94 76 103 June.............. *>49,565 6,448 11,598 *>31,520 231 312 882 1,781 916 98 76 Julyp............. 6,412 11,598 231 312 882 1,781 916 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—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 3,483 891 176 103 152 2,294 Apr................ 4,262 4,966 153 293 158 173 3,483 891 183 103 2,294 May............... 4,262 4,966 153 293 158 173 3,483 891 214 103 2,294 June............... 4,263 4,966 153 158 173 3,483 891 192 103 2 294 JulyP.............. 4,266 4,966 153 158 173 3,483 891 192 103 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—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 1,170 129 539 602 244 3,513 99 151 135 472 231 May............... 69 1,170 129 538 602 244 3,513 99 151 135 472 245 June............... 69 1,170 129 540 602 244 3,514 99 151 472 290 Julyp........ 69 129 540 602 244 3,514 99 151 472 298 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

SEPTEMBER 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A61 U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liquid Liquid Official institutions2 Liquid liabilities to other liabili­ liabili­ foreigners ties to ties to non­ End IMF Liquid mone­ of Total arising Short­ liabili­ Short­ tary period from term Market­ Non­ Other ties term Market­ inti, gold liabili­ able market­ readily to com­ liabili­ able and re­ trans­ ties re­ U.S. able U.S. market­ mercial ties re­ U.S. gional actions 1 Total ported Treas. Treas. able banks Total ported Treas. organi­ by bonds bonds liabili­ abroad6 by bonds zations 8 banks and and ties5 banks and in notes 3 notes4 in notes3,7 U.S. U.S. 196 4 29,364 800 15.786 13,220 1,125 1,283 158 7,303 3,753 3,377 376 1,722 196 5 29,568 834 15,825 13,066 1,105 1.534 120 7,419 4,059 3,587 472 1,431 19669............ J 13 31 1, ,1 0 4 19 4 1 1, , 0 0 1 1 1 1 1 1 4 4 , , 8 89 4 5 0 1 1 2 2 , ,5 4 3 8 9 4 8 8 6 6 0 0 5 58 8 3 3 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 9 0 0 5 6 /35,819 1.033 18,201 14,034 908 1.452 1.807 11,209 4,685 4,127 558 691 19679............ 135,667 1.033 18,194 14,027 908 1.452 1.807 11,085 4,678 4,120 558 677 19689............ ( /3 3 8 8 , , 6 47 8 3 7 1 1 . . 0 03 30 0 1 1 7 7 . , 3 4 4 0 0 7 1 1 1 1 . . 3 3 1 1 8 8 4 5 6 2 2 9 3 3 . . 2 2 1 1 9 9 2 2 . . 3 3 4 4 1 1 1 1 4 4 . . 4 4 7 72 2 4 5 , , 9 0 0 5 9 3 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 7 2 2 5 2 ‘0/45,755 1,109 1015,975 11,054 346 10 3,070 1.505 23,638 4,464 3,939 525 659 19699............ 145,914 1,019 15,998 11,077 346 3,070 1.505 23,645 4,589 4,064 525 663 J47,009 566 23.786 19.333 306 3.452 695 17,137 4,676 4,029 647 844 1970—Dec.. . 146,960 566 23,775 19.333 295 3.452 695 17,169 4,604 4,039 565 846 /67,681 544 51,209 39,679 1.955 9,431 144 10,262 4,138 3,691 447 1,528 1971—Dec. ii 167,808 544 50,651 39,018 1.955 9.534 144 10,949 4,141 3,694 447 1,523 1972—Dec... 82,862 61,526 40,000 5,236 15,747 543 14,666 5,043 4,618 425 1.627 1973—Dec... 92,490 66,861 1243,923 5,701 i215,564 1,673 17,694 5,932 5,502 430 2,003 /119,240 76,801 53,057 5.059 16.339 2.346 30,314 8,803 8,305 498 3.322 1974—Dec.9. \119,204 76,823 53,079 5.059 16.339 2.346 30,146 8,913 8,415 498 3.322 1975—July... 123,312 80.340 50,545 6,296 19,616 3.999 29,037 9,337 8,627 710 4,598 Aug... 124,843 79,911 50,150 6,472 19,466 3.999 30,422 9,621 8,950 671 4,889 Sept... 123,949 78,762 48,594 6,644 19.666 4,030 30,360 9,854 9,153 701 4,973 Oct.. . 124,101 80,676 50,111 6,485 19.666 4,255 28,527 9,971 9,232 739 4,927 Nov... 127,208 80,198 49.634 6,640 19.976 4,353 32,266 10,200 9,490 710 4,544 Dec... 126,593 80,650 49,513 19.976 4,521 29,556 10,759 10,028 731 5.628 1976—Jan.... 128,196 81 ,198 49,487 6,851 20.051 4,809 30,964 10,504 9,766 738 5,530 Feb.. . 131,841 82,326 50,429 7,027 20.051 4,819 33,149 10,808 10,060 748 5,558 Mar... 129,724 82,561 49.634 7,757 20.051 5,119 30,512 10,922 10,118 804 5,729 Apr... 136,714 84,205 50,538 8,187 20.151 5,329 35,256 11,579 10,758 821 5,674 May.. 139,126 85,630 51,606 8,450 20.151 5,423 36,476 11,361 10,557 804 5,659 June.. 135,278 85,138 50,022 9,167 20,251 5,698 32,681 11,512 10,654 858 5,947 July*.. 139,365 85,735 50,447 9,417 20.151 5,785 35,047 11,835 10,947 888 6,683 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969. of gold by the IMF to the United States to acquire income-earning assets. 11 Data on the second line differ from those on first line because cer­ 2 Includes Bank for International Settlements; also includes European tain accounts previously classified as official institutions are included Fund through Dec. 1972. with banks; a number of reporting banks are included in the series for 3 Derived by applying reported transactions to benchmark data. the first time; and U.S. Treasury securities payable in foreign currencies 4 Excludes notes issued to foreign official nonreserve agencies. issued to official institutions of foreign countries have been increased in 5 Includes long-term liabilities reported by banks in the United States value to reflect market exchange rates as of Dec. 31, 1971. and debt securities of U.S. Federally sponsored agencies and U.S. cor­ 12 Includes $ 162 million increase in dollar value of foreign currency porations. liabilities revalued to reflect market exchange rates, as follows: short­ 6 Includes short-term liabilities payable in dollars to commercial banks term liabilities, $15 million; and nonmarketable U.S. Treasury notes, abroad and short-term liabilities payable in foreign currencies to commer­ $147 million. cial banks abroad and to other foreigners. 7 Includes marketable U.S. Treasury bonds and notes held by commer­ Note.—Based on Treasury Dept, data and on data reported to the cial banks abroad. Treasury Dept, by banks and brokers in the United States. Table excludes 8 Principally the International Bank for Reconstruction and Develop­ IMF holdings of dollars, and U.S. Treasury letters of credit and non­ ment and the Inter-American and Asian Development Banks. negotiable, non-interest-bearing special U.S. notes held by other inter­ 9 Data on the 2 lines shown for this date differ because of changes national and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1976 6. U.S. LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Western Latin Other foreign Europe^ American countries2 End of period countries Canada republics Asia Africa 197 2 61,526 34,197 4,279 1,733 17,577 777 2,963 197 3 66,861 45,764 3,853 2,544 10,887 788 3,025 (76,801 44.328 3.662 4.419 18,604 3.161 2.627 1974—Dec.' 3 \76,823 44.328 3.662 4.419 18,626 3.161 2.627 1975—July. 80,340 44,466 2,962 4,765 21,694 3,319 3,134 Aug.r.. 79,911 44,301 2,929 4,937 21,379 3,392 2,973 Sept.r.. 78,762 43,858 3,003 4,840 21,153 3,145 2,763 Oct.r. . 80,676 45,354 3,044 4,254 22,406 3,018 2,600 Nov.r.. 80.198 45,095 3,218 4,056 22,263 2,951 2,615 Dec.r.. 80,650 45,676 3,132 4,448 22,514 2,983 1,897 1976—Jan.r. . 81.198 45,741 3,416 3,552 23,780 2,724 1,985 Feb. *•.. 82,326 45,091 3,645 3,377 25,462 2,731 2,020 Mar.r.. 82,561 45,583 3.663 3,779 26,911 2,718 1,907 Apr.r.. 84,205 43,581 3,600 3,850 28,596 2,805 1,773 May... 85,630 43,247 3,590 3,827 30,047 3,141 1,777 June*.. 85,138 42,426 3,578 4,109 29,880 3,247 1,899 July*.. 85,800 42,311 3,410 3,908 30,899 3,134 2,065 1 Includes Bank for International Settlements; also includes European institutions of foreign countries, as reported by banks in the United States; Fund through 1972. foreign official holdings of marketable and nonmarketable U.S. Treasury 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ securities with an original maturity of more than 1 year, except for non­ pean dependencies in Latin America. marketable notes issued to foreign official nonreserve agencies; and in­ 3 See note 9 to Table 5. vestments by foreign official reserve agencies in debt securities of U.S. Federally sponsored agencies and U.S. corporations. Note.—Data represent short- and long-term liabilities to the official 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional 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.4 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 1,474 197 4 94,811 94,044 14,051 9,932 35,662 34.399 766 3,171 139 111 497 2,424 1975—July.. 92,653 92,092 12,208 10,052 38,564 31,267 560 4,444 146 134 2,518 1,646 Aug.. 94,325 93,763 12,211 10,394 38,529 32,629 562 4,804 110 148 3,156 1,389 Sept.. 93,008 92,454 13,402 10,170 36,653 32,230 554 4,901 107 127 3,008 1,659 Oct... 92,453 91,818 12,128 10,259 37,728 31,702 635 4,583 132 150 2,397 1,903 Nov.. 95,861 95,221 12,810 10,076 37,268 35,068 637 4,471 145 156 1,605 2,563 Dec.. 94,390 93,833 13,564 10,348 37,414 32,506 549 5,293 139 148 2,554 2,451 1976—Jan... 95,151 94,542 12,271 10,483 38,789 32,998 600 4,933 i 14 217 2,498 2,103 Feb... 98,159 97,505 13,350 10,222 39,763 34,169 642 4,520 118 162 2,435 1,806 Mar.. 95,033 94,462 13,091 10,488 37,977 32,907 565 4,768 130 192 2,495 1,952 Apr.. 102,070 101,303 14,244 10,235 39,430 37,394 763 5,519 140 193 2,739 2,446 May* 104,151 103,419 13,846 10,104 40,258 39,211 727 5,512 91 185 2,876 2,361 June*, 98,722 98,031 14,115 9,990 38,257 35,668 687 5,365 258 160 2,236 2,711 July.. 102,057 101,384 14,897 10,256 39,645 36,650 667 5,616 483 192 3,129 1,813 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A63 7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions 8 Payable in dollars Payable in dollars Payable End of period in Payable Total Deposits U.S. Other foreign Total Deposits U.S. Other in Treasury short­ cur­ Treasury short­ foreign bills and term rencies bills and term currencies Demand Time2 certifi­ liab. 4 Demand 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 6 7 4 6 0 1 1 3 3 , , 9 9 2 1 8 2 9 9, , 8 99 21 5 3 3 5 5 . . 1 1 6 6 5 5 3 3 1 1 , , 8 9 2 7 2 5 7 7 6 6 6 6 5 5 3 3 , , 0 0 5 7 7 9 2 2 . . 9 9 5 5 1 1 4 4 , , 2 1 5 6 7 7 3 3 4 4 . . 6 6 5 5 6 6 1 1 1 1 , , 0 1 6 7 6 8 1 1 2 2 7 7 1975—July'. 88,209 12,062 9.918 36,046 29,622 560 50,545 2,488 4,051 35,805 8,200 Aug.r 89,522 12,101 10,245 35,373 31,240 562 50,150 2,493 4,102 35,102 8,453 Sept.r 88,107 13,295 10,043 33,645 30,571 554 48,594 2.444 3,886 33,339 8,925 Oct.r. 87,870 11,996 10,109 35,330 29,800 635 50,111 2,448 3,877 35,004 8,782 Nov.' 91,390 12,665 9,920 35,663 32,506 637 49.634 2,242 3,579 35,242 8,571 Dec.' 89,097 13,426 10,200 34,860 30,063 549 49,513 2,644 3,423 34,182 9,264 1976—Jan. 90,217 12,158 10,266 36,291 30,903 600 49,487 2.445 3,291 35,645 8,106 Feb.*-, 93.638 13,233 10,060 37,328 32,376 642 50,429 2,695 2,908 36,761 8,066 Mar.' 90,264 12,962 10,296 35,482 30,959 565 49.634 2,671 2,767 34,989 9,207 Apr.', 96,551 14,104 10,042 36,691 34,951 763 50,538 2,782 2,319 36,196 9,241 May.. 98.638 13,755 9.919 37,382 36,855 727 51,606 2,799 2,400 36,859 9,547 JuneP. 93,357 13,858 9,830 36,021 32,962 687 50,022 2,632 2,413 35,531 9,447 JulyP. 96,441 14,415 10,064 36,452 34,844 667 50,382 2,911 2,251 35,964 9,255 To banks9 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Deposits U.S. Other Deposits U.S. Other foreign Treasury short­ Treasury short­ cur­ Total bills and term Total bills and term rencies Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab. 6 cates cates 1973....................... 23,196 17,224 6,941 529 11 9,743 5,502 2,143 2,359 68 933 469 1107*7/4A —JL>ec. 7*...... \ ( 3 3 8 8 , , 5 6 6 19 0 2 2 9 9, ,5 67 0 6 7 8 8, , 2 2 3 4 1 8 1 1 , , 9 9 4 1 2 0 2 2 3 3 2 2 1 1 9 9 , , 2 1 5 3 4 4 8 8, ,4 3 1 04 4 2 2 , , 7 7 2 29 9 3 3 , , 7 79 4 6 4 2 2 7 7 7 7 1 1 , , 5 6 0 6 2 4 6 6 3 3 9 9 1975—July'........... 37,664 28,477 6,877 1,619 91 19,890 8,627 2,698 4,248 150 1,531 560 Aug.r.......... 39,371 29,860 6,903 1,623 88 21,245 8,950 2,705 4,520 183 1,542 562 Sept.'.......... 39,513 29,806 7,962 1,656 89 20,099 9,153 2,889 4,501 217 1,547 554 Oct.'.......... 37,759 27,891 6,780 1,565 100 19,446 9,232 2,769 4,666 226 1,572 635 Nov.r.......... 41,756 31,630 7,584 1,544 135 22,367 9,490 2,839 4,797 287 1,568 637 Dec.'.......... 39,584 29,006 7,534 1,942 335 19,195 10,029 3,248 4,835 342 1,604 549 1976—Jan.r.......... 40,730 30,364 6,809 1,979 369 21,208 9,766 2,904 4,996 277 1,588 600 Feb.'.......... 43,209 32,507 7,418 2,036 275 22,777 10,060 3,120 5,116 293 1,532 642 Mar.'......... 40,630 29,947 7,248 2,268 217 20,215 10,118 3,044 5,261 276 1,538 565 Apr.r.......... 46,014 34,493 7,883 2,317 134 24,160 10,757 3,439 5,406 361 1,551 763 May............ 47,033 35,749 7,737 2,092 151 25,769 10,557 3,219 5,427 372 1,538 727 June?.......... 43,335 31,994 8,099 1,879 154 21,862 10,654 3,127 5,538 336 1,653 687 JulyP.......... 46,060 34,381 8,181 2,274 155 23,771 11,012 3,322 5,540 398 1,753 667 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. □ SEPTEMBER 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 1 Oct.r Nov.r Jan.r Feb. Mar.r Apr.r May June? July? Europe: Austria.................................... 607 607 644 682 754 749 715 581 585 577 549 589 Belgium-Luxembourg............. 2,506 2,506 2,899 2,919 2,898 2,678 2,440 2,395 2,332 2,213 2,336 1,977 Denmark.................................. 369 369 327 361 332 375 434 678 681 649 452 322 Finland..................................... 266 266 372 385 391 309 313 334 350 403 396 446 France...................................... 4,287 4,287 6,608 7,159 7,733 7,499 6,480 6,210 4,856 4,529 4,776 4,408 Germany.................................. 9,420 9,429 5,089 4,841 4,357 3,823 4,468 4,195 5,830 5,206 4,932 4,961 Greece...................................... 248 248 331 313 284 263 340 261 289 299 346 361 Italy.......................................... 2,617 2,617 1,369 1,042 1,112 1,052 1,044 1,338 1,504 1 ,418 1,560 2,410 Netherlands.............................. 3,234 3,234 3,468 3,579 3,411 3,409 3,828 3,397 3,281 3,111 2,256 2,182 Norway..................................... 1,040 1,040 886 970 996 888 925 798 915 797 807 900 Portugal.................................... 310 310 236 190 195 243 221 209 213 189 196 250 Spain......................................... 382 382 414 402 426 445 400 386 462 392 446 416 Sweden...................................... 1,138 1,138 2,258 2,251 2,286 2,266 2,312 2,287 2,352 2,437 2,435 2,384 Switzerland............................... 9,986 10,139 8,206 8,049 8,514 8,611 8,648 8,854 8,965 9,129 10,125 9,696 Turkey....................................... 152 152 128 120 118 88 104 106 113 101 95 80 United Kingdom..................... 7,559 7,584 6,736 7,186 6,886 7,606 8,231 6,726 6,589 7,096 6,430 6,288 Yugoslavia............................... 183 183 138 175 126 83 178 222 179 174 182 128 Other Western Europe2.......... 4,073 4,073 2,433 2,375 2,970 2,313 2,116 2,144 2,002 2,250 2,079 2,153 U.S.S.R..................................... 82 82 42 38 40 45 43 38 34 45 40 35 Other Eastern Europe.............. 206 206 153 128 200 160 201 159 161 153 188 209 Total................................. 48,667 48,853 42,737 43,167 44,028 42,906 43,441 41,320. 41,692 41,168 40,628 40,193 Canada......................................... 3,517 3,520 3,567 4,091 3,076 3,885 4,721 4,126 4,173 4,997 3,788 4,013 Latin America: Argentina................................. 886 886 1,135 1,150 1,147 1,208 1.134 1,169 1 ,238 1,368 1,398 1,406 Bahamas................................... 1,448 1,054 2,221 2,989 1,827 3.190 2,940 1,715 4,600 5,162 2,905 4,835 Brazil........................................ 1,034 1,034 1,083 1,075 1,227 1.191 1.135 1,320 1,475 1,176 1,271 1,308 Chile,........................................ 276 276 270 266 317 248 248 273 310 367 368 298 Colombia.................................. 305 305 366 387 417 484 536 516 582 629 686 762 Mexico...................................... 1,770 1,770 1,956 2,183 2,078 1,899 2,048 2,004 2,133 2,218 2,158 2,110 Panama.................................... 488 510 765 840 1,099 1,145 953 779 961 1,098 1,207 1,052 Peru.......................................... 272 272 247 249 244 219 223 235 219 230 221 235 Uruguay................................... 147 165 168 175 172 185 204 242 216 215 229 219 Venezuela................................. 3,413 3,413 3,531 3,188 3,289 2,711 2,571 2,574 2,742 2,757 2,643 2,747 Other Latin American re­ publics .................................. 1,316 1,316 1,399 1,369 1,500 1,437 1,456 1,640 1,713 1,671 1,842 1,796 Netherlands Antilles and Surinam................................ 158 158 113 118 129 129 142 119 121 125 128 135 Other Latin America............... 526 596 1,046 2,191 1,507 1,620 2,448 1,735 2,530 1,881 1,533 2,057 Total................................. 12,038 14,305 16,181 14,954 15,665 16,037 14,322 18,839 18,897 16,591 18,960 Asia: China, People’s Rep. of (China Mainland)................. 50 50 104 93 123 263 224 101 120 139 63 42 China, Republic of (Taiwan).. 818 818 1,063 1,051 1,025 1,015 1,072 1,100 1,134 1,130 1,182 1,063 Hong Kong............................... 530 530 684 683 623 667 682 741 709 803 747 788 India......................................... 261 261 194 181 126 203 324 338 423 632 845 938 Indonesia.................................. 1,221 1,221 612 418 369 762 583 498 920 1,121 706 1,122 Israel......................................... 386 389 364 342 386 325 312 346 323 324 312 288 Japan........................................ 10,897 10,931 9.954 10,790 10,218 10,556 11,764 12,265 12,789 13,246 12,847 13,631 Korea........................................ 384 384 400 386 390 395 382 361 360 327 343 346 Philippines................................ 747 747 580 593 698 601 616 605 525 593 742 636 Thailand................................... 333 333 194 193 252 279 224 225 244 218 261 244 Middle East oil-exporting countries 3............................ 4,633 4,623 5.955 6,157 6,461 6,444 6,993 7,723 8,008 8,543 7,290 7,286 Other........................................ 813 845 925 885 867 969 933 967 1,017 984 1,250 1,125 Total................................. 21,073 21,130 21,774 21,539 22,480 24,109 25,271 26,570 28,061 26,587 27,507 Africa: Egypt........................................ 103 103 185 255 343 177 180 314 231 197 211 236 South Africa............................. 130 130 177 108 169 218 133 186 177 202 161 123 Oil-exporting countries 4........ 2,814 2,814 2,447 2,372 2,239 2,135 2,208 1,919 2,256 2,423 2,567 2,443 Other........................................ 504 504 575 643 623 562 609 680 598 651 652 672 Total................................. 3,551 3,551 3,385 3,377 3,373 3,091 3,131 3,099 3,262 3,472 3,591 3,473 Other countries: Australia.................................. 2,742 2,742 2,766 2,713 2,014 2,046 2,070 2,001 1,931 1,950 2,066 2,185 All other.................................. 89 89 80 87 114 143 131 125 84 93 107 111 Total................................. 2,831 2,831 2,846 2,800 2,128 2,190 2,201 2,126 2,015 2,043 2,173 2,296 Total foreign countries.............. 91,676 91,640 87,870 91,390 89,097 90,217 93,638 90,264 96,551 98,638 93,357 96,441 International and regional: International 5....................... 2,900 2,900 4,303 4,217 5,064 4,629 4,188 4,459 5,269 5,247 5,063 5,341 Latin American regional....... 202 202 190 193 187 219 262 182 141 156 176 163 Other regional 6..................... 69 69 90 61 42 86 70 128 108 109 126 112 Total............................... 3,171 3,171 4,583 4,471 5,293 4,933 4,520 4,769 5,519 5,512 5,365 5,617 Grand total..................... 94,847 94,811 92,453 95,861 94,390 95,151 98,159 95,033 102,070 104,151 98,722 102,057 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 1974 1975 1976 1974 1975 1976 Area and country Area and country Apr. Dec. Apr. Dec. Apr.P Apr. Dec. Apr. Dec. Apr.P Other Western Europe: Other Asia—Cont.: Cyprus.............................................. 10 7 17 6 38 Cambodia..................................... 4 4 4 4 Iceland. ............................................ 11 21 20 33 Jordan.......................................... 6 22 30 39 20 Ireland, Rep. of................................ 53 29 29 75 39 Laos.............................................. 3 3 5 2 2 Lebanon....................................... 68 126 180 117 Other Latin American republics: Malaysia....................................... 40 63 92 77 105 Bolivia............................................... 102 96 93 110 104 Pakistan........................................ 108 91 118 74 89 Costa Rica........................................ 88 118 120 125 69 Singapore..................................... 165 245 215 255 Dominican Republic........................ 137 128 214 169 149 Sri Lanka (Ceylon)...................... 13 14 13 13 9 Ecuador............................................ 90 122 157 120 Vietnam........................................ 98 126 70 62 33 El Salvador....................................... 129 129 144 171 ' 'l‘28* Guatemala........................................ 245 219 255 260 177 Haiti.................................................. 28 35 34 38 36 Honduras.......................................... 71 88 92 99 69 Other Africa: Jamaica............................................. 52 69 62 41 49 Ethiopia (incl. Eritrea)................ 118 95 76 60 70 Nicaragua.......................................... 119 127 125 133 89 Ghana.......................................... 22 18 13 23 Paraguay........................................... 40 46 38 43 43 Kenya........................................... 20 31 32 19 37 Trinidad and Tobago....................... 21 107 31 131 Liberia.......................................... 29 39 33 53 61 Southern Rhodesia...................... 1 2 3 1 1 Other Latin America: Sudan............................................ 2 4 14 12 17 Bermuda............................................ 201 116 100 170 Tanzania....................................... 12 11 21 30 18 British West Indies........................... 354 449 627 rl ,311 Tunisia.......................................... 17 19 23 29 33 Uganda......................................... 11 13 38 22 Other Asia: Zambia......................................... 66 22 18 78 Afghanistan....................................... 11 18 19 41 54 Burma................................................ 42 65 49 31 All other: New Zealand................................ 33 47 36 42 29 1 Data in the 2 columns shown for this date differ because of changes 4 Comprises Algeria, Gabon, Libya, and Nigeria. in reporting coverage. Figures in the first column are comparable in 5 Data exclude holdings of dollars of the International Monetary Fund. coverage with those for the preceding date; figures in the second column 6 Asian, African, and European regional organizations, except BIS, are comparable with those shown for the following date. which is included in “Europe.” 2 Includes Bank for International Settlements. 7 Represent a partial breakdown of the amounts shown in the other 3 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, categories (except “Other Eastern Europe”). and United Arab Emirates (Trucial States). 9. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other United Total All regional Total institu­ Banks1 foreign­ Ger­ King­ Total Latin Middle Other other tions ers many dom Europe America East2 Asia3 coun­ tries 1972.............................. 1,018 580 439 93 259 87 165 63 260 136 33 10 1973.............................. 1,462 761 700 310 291 100 159 66 470 132 83 16 1974.............................. 1,285 822 464 124 261 79 146 43 227 115 94 8 20 1975—July r................. 1,633 432 1 ,200 861 262 77 121 61 221 121 829 7 24 Aug.r................ 1,586 372 1,214 871 263 81 120 61 222 123 839 7 23 Sept.r............... 1,608 395 1,213 873 261 79 118 61 221 121 841 7 23 Oct.r................. 1,525 311 1,212 868 261 83 118 61 226 126 832 6 24 Nov.r............... 1,561 297 1,263 894 286 83 115 66 231 147 857 12 24 Dec.r................ 1,812 415 1,395 931 364 100 214 66 331 140 894 8 24 1976—Jan.r................. 1,935 306 1,627 1,027 477 123 314 70 448 142 990 16 41 Feb.r................. 1,919 286 1,631 1,050 473 107 312 69 444 141 1,009 12 26 Mar.r............... 2,132 182 1,949 1,342 492 115 306 78 443 147 1,305 16 40 Apr.r................. 2,137 197 1,938 1,372 435 131 309 87 457 108 1,335 14 25 May.................. 2,134 135 1,997 1,429 431 137 306 87 453 104 1,399 16 26 Junep................ 2,313 189 2,123 1,500 459 164 308 90 468 134 1,458 19 45 Julyp................. 2,363 285 2,076 1,484 450 143 307 89 463 116 1,448 22 28 1 Excludes central banks, which are included with “Official institutions.” Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial 2 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, States). 3 Until Dec. 1974 includes Middle East oil-exporting countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1976 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1974 1975 1976 Area and country Dec. July r Aug.r Sept.r Oct.r Nov.r Dec.r Jan.r Feb. ' Mar.r Apr. Mayp June*5 July? Europe: Belgium-Luxembourg........ 10 14 14 14 14 13 13 13 13 13 14 13 12 11 Germany............................ 9 209 210 217 216 216 215 212 238 247 228 225 227 221 Sweden............................... 251 252 278 275 275 275 276 276 276 276 276 281 291 291 Switzerland......................... 30 37 41 44 54 58 55 68 72 75 89 99 101 132 United Kingdom............... 493 536 520 501 441 414 363 374 370 386 389 349 380 368 Other Western Europe---- r88 98 102 114 152 165 159 209 213 381 465 472 551 577 Eastern Europe.................. 5 5 5 5 5 4 4 4 4 4 4 4 4 4 Total........................... 885 1,151 1,169 1,170 1,157 1,145 1,085 1,156 1,186 1,382 1,465 1,443 1,566 1,604 Canada.................................. 713 408 406 404 400 402 395 395 418 419 425 340 340 341 Latin America: Latin American republics.. 12 13 13 13 13 33 33 33 33 33 33 34 34 39 Netherlands Antilles 1. . .. 83 178 149 149 158 160 161 159 131 121 120 125 141 157 Other Latin America........ 5 5 5 5 6 6 6 7 7 7 7 7 7 7 Total........................... 100 196 167 168 177 199 200 200 171 161 160 166 182 203 Asia: Japan.................................. 3,498 3,496 3,496 3,502 3,520 3,269 3,271 3,268 3,212 3,217 3,217 3,074 3,075 3,077 Other Asia......................... 212 1,438 1,518 1,668 1,818 1,869 2,099 2,229 2,436 2,987 3,330 3,800 4,391 4,578 Total........................... 3,709 4,934 5,014 5,170 5,339 5,138 5,370 5,497 5,648 6,204 6,547 6,874 7,466 7,655 Africa..................................... 151 201 211 261 311 311 321 340 350 396 411 431 471 501 Total foreign countries......... 5,557 6,890 6,967 7,173 7,383 7,195 7,372 7,589 7,775 8,561 9,009 9,254 10,026 10,305 International and regional: International...................... 97 128 66 51 324 59 321 593 1,034 957 153 149 583 1,059 Latin American regional.. 53 25 20 20 20 14 14 4 4 5 3 -1 -1 9 Total........................... 150 153 86 71 344 73 335 597 1,038 961 155 148 581 1,067 Grand total................ 5,708 7,044 7,053 7,245 7,727 7,268 7,707 8,185 8,812 9,521 9,163 9,401 10,607 11,372 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............................. 39,056 37,859 11,296 381 7,337 3,579 5,637 11,237 9,689 1,196 669 289 238 1975—July r................. 45,676 44,498 11,740 574 6,875 4,292 5,383 10,204 17,170 1,178 611 296 271 Aug.r................ 45,962 44,807 13,474 628 8,352 4,495 5,314 9,977 16,040 1,155 616 240 299 Sep.r................. 45,843 44,706 12,822 574 7,638 4,610 5,31,4 10,071 16,499 1,138 581 236 320 Oct.r................. 48,169 46,848 12,811 649 7,642 4,519 5,465 10,134 18,438 1,321 749 231 341 Nov.r............... 48,752 47,432 13,562 697 8,392 4,472 5,363 10,610 17,898 1,319 652 340 327 Dec.r................ 50,248 48,938 13,287 614 7,733 4,939 5,467 11,135 19,049 1,309 633 301 376 1976—Jan.r................ 51,583 50,338 13,495 697 8,147 4,652 5,311 11,047 20,485 1,246 696 263 286 Feb.r................. 54,173 52,773 14,303 754 8,762 4,788 5,191 10,994 22,285 1,401 728 241 431 Mar.r............... 53,580 52,259 13,640 765 8,059 4,817 5,367 11,148 22,105 1,321 794 145 382 Apr.................... 55,668 54,219 14,549 769 8,824 4,956 5,325 11,297 23,048 1,449 920 156 373 Mayr................. 57,658 56,240 15,819 1,014 9,532 5,272 5,379 11,310 23,733 1,419 878 141 399 Juner................. 57,907 56,347 15,166 815 9,110 5,240 5,517 11,540 24,125 1,560 916 158 487 July r................. 59,294 57,836 16,572 841 10,575 5,157 5,397 11,451 24,416 1,457 845 132 480 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

SEPTEMBER 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.r Oct.r Nov.r Dec.r Jan.r Feb.r Mar.r Apr.r May June*> July33 Europe: Austria...................................................... 21 19 32 15 20 23 22 39 25 35 24 Belgium-Luxembourg.............................. 384 558 496 352 401 417 430 398 427 537 558 Denmark................................................... 46 50 54 49 55 55 55 59 57 62 68 Finland...................................................... 122 127 133 128 132 120 128 105 109 125 133 France....................................................... 673 1,407 1 ,289 1,471 1,397 1,513 1,256 1,233 1,109 1,145 1,099 Germany................................................... 589 515 689 441 486 426 474 452 448 389 432 Greece....................................................... 64 56 91 49 55 52 53 63 62 53 69 Italy........................................................... 345 438 418 370 369 402 360 406 492 554 644 Netherlands.............................................. 348 264 285 300 316 267 269 290 267 318 251 119 102 92 71 66 63 66 71 76 71 74 Portugal.................................................... 20 15 19 16 20 20 21 18 32 40 54 Spain......................................................... 196 256 261 249 274 262 231 241 321 285 302 Sweden...................................................... 180 152 182 167 124 111 121 105 116 106 97 335 274 337 237 250 278 340 400 355 400 518 Turkey...................................................... 15 54 121 86 59 82 73 68 90 99 81 United Kingdom...................................... 2,580 4,042 4,117 4,718 4,588 4,778 4,550 5,295 4,987 5,069 5,435 Yugoslavia................................................ 22 34 55 38 37 49 64 50 47 45 45 22 22 25 27 26 29 29 27 41 57 42 U.S.S.R..................................................... 46 144 165 103 101 84 85 63 70 70 69 Other Eastern Europe............................. 131 96 103 114 125 159 109 107 102 110 147 Total.................................................. 6,255 8,625 8,964 9,000 8,899 9,190 8,737 9,491 9,232 9,570 10,140 Canada.......................................................... 2,776 2,739 2,751 2,817 3,020 2,983 2,917 3,253 3,364 3,166 3,027 Latin America: 720 1,343 1 ,229 1,203 1,246 1,338 1,290 1,374 1,342 1,145 1,144 Bahamas.................................................... 3,405 7,297 6,887 7,577 8,048 10,048 10,324 10,267 11,104 11,460 12,277 Brazil......................................................... 1,418 1,561 1,807 2,225 2,157 2,204 2,318 2,351 2,414 2,692 2,632 290 351Chile.3..8..1.............3..6..0............3..1..2.............3..4..3... 324 349 352 340 363 Colombia.................................................. 713 662 649 692 654 586 545 539 518 533 535 Mexico...................................................... 1,972 2,613 2,565 2,813 2,783 3,079 3,034 3,236 3,444 3,492 3,559 Panama..................................................... 505 919 904 1,052 1,281 1,193 1,110 787 991 825 697 Peru........................................................... 518 599 565 588 624 634 597 638 621 623 661 Uruguay.................................................... 63 52' 56 51 68 62 46 39 33 33 30 Venezuela.................................................. 704 1,051 980 1,086 1,001 925 1,040 1,077 1,280 1,153 1,339 Other Latin American republics............. 866 1,041 969 980 1,055 1,061 986 1,052 1,153 999 1,076 Netherlands Antilles and Surinam.......... 62 59 46 49 53 43 33 32 32 33 28 Other Latin America............................... 1,142 2,233 2,659 1,885 3,085 3,264 2,729 3,718 3,996 3,667 4,015 Total.................................................. 12,377 19,782 19,698 20,561 22,368 24,781 24,375 25,458 27,280 26,997 28,356 Asia: China, People’s Rep. of (China Mainland) 4 11 11 22 10 17 22 18 9 10 12 China, Republic of (Taiwan)................... 500 601 681 737 725 729 775 793 860 863 880 Hong Kong.............................................. 223 257 258 258 234 225 229 200 228 273 296 India.......................................................... 14 17 16 21 19 26 25 26 34 38 36 Indonesia.................................................. 157 88 94 105 129 131 162 162 171 164 125 Israel.......................................................... 255 389 387 491 419 365 309 314 285 315 269 Japan......................................................... 12,518 10,253 10,429 10,753 10,121 9,870 10,208 10,11S 10,004 10,358 10,274 Korea........................................................ 955 1,555 1,505 1,556 1,605 1,715 1,600 1,713 1,675 1,713 1,625 Philippines................................................ 372 338 347 384 434 507 510 520 559 524 389 Thailand.................................................... 458 501 499 495 535 516 537 533 491 490 465 Middle East oil-exporting countries 1... 330 446 506 524 525 600 646 605 742 744 778 Other......................................................... 441 702 665 684 734 705 731 632 785 719 695 Total.................................................. 16,226 15,158 15,398 16,029 15,489 15,405 15,756 15,635 15,841 16,211 15,843 Africa: Egypt......................................................... 111 127 130 104 106 101 103 110 106 117 116 South Africa............................................. 329 513 540 545 547 546 575 631 672 689 698 Oil-exporting countries 2......................... 115 207 215 231 213 230 226 210 211 181 185 Other......................................................... 300 379 410 351 349 330 270 301 336 329 311 Total.................................................. 855 1,227 1,294 1,231 1,215 1,207 1,174 1,252 1,325 1,315 1,309 Other countries: Australia................................................... 466 532 554 535 503 492 521 498 547 548 542 All other.................................................... 99 105 91 73 87 113 98 79 67 100 74 Total.................................................. 565 638 645 609 589 605 619 577 615 647 617 Total foreign countries................................ 39,055 48,169 48,751 50,246 51,581 54,172 53,578 55,666 57,657 57,906 59,292 International and regional........................... 6 1 1 3 2 3 2 1 1 1 Grand total....................................... 39,056 48,169 48,752 50,248 51,583 54,173 53,580 55,668 57,658 57,907 59,294 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. □ SEPTEMBER 1976 13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Total Payable period Loans to— in Total Total Middle Other All Other foreign Europe Canada Latin Japan East3 Asia4 other long­ curren­ America coun­ Official Other term cies tries2 Total institu­ Banks1 foreign­ claims tions ers2 1972................. 5,063 4,588 844 430 3,314 435 40 853 406 2,020 353 918 514 1973................. 5,996 5,446 1,160 591 3,694 478 72 1,272 490 2,116 251 1,331 536 1974'............... 7,179 6,490 1,328 931 4,231 609 80 1,907 501 2,614 258 384 977 537 1975—July'. .. 8,289 7,406 1,281 1,297 4,829 792 90 461 1,914 471 2,992 241 1,222 718 Aug.'... 8,328 7,456 1,278 1,343 4,835 787 85 485 1,938 438 3,010 237 1,223 739 Sept.r. . 8,607 7,705 1,343 1,371 4,991 809 93 504 1,955 508 3,139 237 1,214 785 Oct.'... 8,948 7,994 1,281 1,536 5,177 840 114 571 1,996 595 3,175 222 1,233 865 Nov.'. . 9,158 8,137 1,318 1,567 5,253 903 118 583 1,979 569 3,287 249 1,237 961 Dec.'... 9,550 8,499 1,375 1,712 5,412 934 116 621 2,074 555 3,497 220 1,276 1,011 1976—Jan.'. .. 9,432 8,369 1,293 1,653 5,423 945 118 645 2,052 552 3,382 205 1,277 1,030 Feb.'... 9,531 8,372 1,268 1,652 5,452 1,012 148 652 1,970 576 3,471 210 1,270 1,093 Mar.'. . 9,800 8,641 1,316 1,740 5,584 1,011 149 692 2,010 570 3,605 296 1,195 1,140 Apr.'... 9,980 8,783 1,337 1,842 5,603 1,081 116 745 1,991 558 3,785 196 1,279 1,118 May___ 10,252 9,004 1,381 1,933 5,689 1,133 115 848 1,983 607 3,973 196 1,263 1,075 June*\.. 10,138 8,858 1,360 1,939 5,558 1,159 121 753 1,969 575 4,050 182 1,255 1,032 July*. .. 10,463 9,179 1,344 2,072 5,763 1,151 133 781 2,090 660 4,095 183 1,290 1,027 1 Excludes central banks, which are included with “Official institutions.” Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 2 Includes international and regional organizations. (Trucial States). 3 Comprises Middle East oil-exporting countries as follows: Bahrain, 4 Until Dec. 1974 includes Middle East oil-exporting countries. 14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) Marketable U.S. Treas. bonds and notes1 U.S. corporate Foreign bonds 3 Foreign stocks 3 securities2,3 Net purchases or sales (—) Period Pur­ Net pur­ Pur­ Net pur­ Pur- Net pur­ Intl. Foreign chases Sales chases or chases Sales chases Sales Sales chases Ol Total and sales (—) sales (—) sales (—] regional Total4 Official Other 1973............................. 305 -165 470 465 6 18,574 13,810 4,764 1,474 2,467 -993 1,729 1,554 176 1974'........................... -472 101 -573 -642 69 16,207 14,679 1,529 1,036 3,254 -2,218 1,907 1,723 184 1975'........................... 1,994 180 1,814 1,596 233 20,741 15,321 5,421 2,383 8,683 -6,301 1,541 1,730 -189 1976—Jan.-July**....... 3,664 732 2,932 2,776 157 15,475 12,168 3,307 2,673 8,212 -5,540 1,158 1,454 -296 1975—July.................. 192 95 96 56 56 2,280 1,292 988 315 1,008 -693 109 120 -11 Aug.................. 9 -67 77 117 -40 1,466 1,345 121 158 318 -160 90 257 -167 Sept.................. 192 -14 206 175 31 1,288 1,131 157 194 285 -91 91 81 10 Oct................... 482 272 210 173 38 2,133 1,382 751 195 678 -483 138 162 -24 Nov.................. -459 -270 -189 -159 -29 1,674 1,249 426 248 991 -743 108 79 28 Dec.'............... 439 262 177 156 21 1,894 964 930 281 1,471 -1,190 148 97 51 1976—Jan.'................ 478 261 217 210 7 2,834 2,078 756 462 800 -339 145 142 3 Feb.'............... 627 441 186 176 10 2,503 2,086 417 402 1,547 -1,145 162 222 -60 Mar.'.............. 709 -77 786 731 55 2,524 1,972 552 360 1,293 -933 193 246 -53 Apr.'............... -358 -805 447 430 18 2,260 1,689 571 341 763 -422 182 143 40 May................. 238 -7 245 263 -18 1,636 1,501 135 373 822 -450 198 240 -42 Junep............... 1,205 434 772 717 55 1,820 1,328 492 295 813 -518 147 204 -57 July2*................ 765 486 279 249 30 1,899 1,514 385 440 2,173 -1,734 130 257 -127 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 ^ 1,797 170 agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments 1976—Jan.-July p 2,431 150 abroad. 3 Includes transactions of international and regional organizations. 1975—July 1 20 4 Includes transactions (in millions of dollars) of oil-exporting countries Aug. 80 10 in Middle East and Africa as shown in the tabulation in the opposite Sept. 150 50 column: Oct. 150 50 Nov. 51 Dec. 179 10 1976—Jan. 116 20 Feb. 191 10 Mar. 532 45 Apr. 320 15 May 460 20 June» 611 40 July 2s 200 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Asia2Othersales (—) dom Latin 1973. 12,767 9,978 2,790 439 2 339 686 366 2,104 99 4 577 5 1974 7,636 7,096 540 203 39 330 36 -377 281 -6 -33 288 17 1975 15,347 10,678 4,669 262 251 359 899 594 2,491 361 -7 1,640 142 33 1976-—Jan.-JulyP 12,238 9,735 2,504 204 93 -51 102 292 661 199 162 1,347 108 17 1975--July........ 1,691 1,094 598 55 35 80 139 80 404 20 13 152 3 5 Aug.r....... 1,186 718 468 52 54 47 83 39 304 21 -7 108 25 16 Sept.r....... 898 646 252 10 6 22 64 7 122 20 -15 83 34 7 Oct.r........ 1,475 1,047 428 16 -6 17 36 48 143 60 7 190 22 6 Nov.r.... 1,155 817 338 22 42 -5 42 44 134 36 -1 157 8 2 Dec.r....... 1,380 691 689 28 38 64 122 32 295 103 -9 289 13 -3 1976--Jan.r........ 2,087 1,546 541 1 136 -48 -2 88 208 40 76 222 -6 1 Feb.r........ 2,095 1,724 371 15 12 -14 63 41 133 48 11 175 5 2 Mar.r... . 2,137 1,555 582 79 26 -6 147 69 327 16 28 153 42 9 Apr.r........ 1,690 1,279 411 10 10 31 -21 49 84 23 25 254 22 -1 May.......... 1,209 1,096 113 3 -44 4 21 20 -11 30 7 67 16 4 JuneP........ 1,429 1,174 255 24 -27 2 -47 20 -47 -2 11 266 20 3 July 1,592 1,360 232 72 -20 -22 -58 5 -33 45 4 209 10 -1 1 Comprises Middle East oil-exporting countries as follows: Bahrain, 2 Until 1975 includes Middle East oil-exporting countries. Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates 3 Includes iniernational and regional organizations. (Trucial States). 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Ger­ Nether­Switzer­ United Total Total Middle Other Total Other Intl. and Period Total France many lands land Kingdom Europe Canada Latin East1 Asia2 Africa countries regional America 1973..................... 1,948 201 -33 -19 307 275 1,204 49 44 588 * 10 52 1974r................... 988 96 33 183 96 395 741 45 43 632 * 10 -483 1975’’................... 752 82 -11 15 117 87 106 128 31 1,553 -42 5 1 -1,030 1976—Jan.-JulyP 804 31 56 4 141 -38 12 47 17 831 -104 11 -20 8 1975—July ' 391 27 16 6 35 80 183 33 2 186 4 * * -17 Aug.r....... -347 14 -3 -18 -5 70 -73 6 1 11 1 * * -293 Sept.r___ -94 -14 6 26 -7 * -19 -5 5 94 -6 * * -162 Oct.r........ 323 1 -50 2 12 78 40 38 11 247 -4 3 * -11 Nov.r. .. . 88 39 8 -17 9 -41 -25 -1 6 93 4 1 * 11 Dec.r........ 242 2 3 3 8 56 74 6 6 150 -11 1 * 16 1976—Jan. ' 215 5 -1 1 36 -30 7 29 3 221 -20 -2 -10 -14 Feb.r........ 47 2 -1 2 20 -2 23 4 6 30 -34 1 * 18 Mar.r.... -31 3 -56 -3 5 -11 -70 9 1 35 -20 4 -10 20 Apr.r........ 160 3 9 -5 4 -26 -25 7 3 179 -13 7 * 4 May.......... 22 3 -2 * 23 19 -2 -3 -3 37 6 * * -13 June?........ 237 6 -1 —2 18 8 30 1 * 224 -19 * * * July®........ 153 10 -3 4 35 3 49 2 7 104 -2 1 * -8 2 1 S S e e e e n n o o t t e e 2 1 t t o o T T a ab bl l e e 1 1 5 5 . . of N U o . t S e . .— G S o t v a t t , i st a i g c e s n i c n i c e l s u d a e n d S ta c t o e r p an o d ra l t o io c n al s . g o A v l t s , o s e in cu cl r u it d ie e s s , i a ss n u d e s s e o cu f r n it e ie w s debt securities sold abroad by U.S. corporations organized to finance di­ rect investments abroad. 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun- End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1973 —818 139 —957 —141 —569 — 120 — 168 3 37 1973—Sept........................... 290 255 1974r.............. -2,034 -60 -1,974 -546 -1,508 -93 142 7 333 231 1975'.............. -6,490 -2,192 -4,299 -53 -3,178 -306 -622 15 -155 1974—Mar............................ 383 225 1976— June........................... 354 241 Jan.-July*... -5,835 -1,101 -4,734 -443 -3,713 -81 -306 44 -236 Sept............................ 298 178 Dec............................ 293 194 1975—July r... 704 -475 -230 -26 -113 -25 -70 * 4 Aug.r.. -327 12 -339 24 -202 -164 * 1 2 1975—Mar............................ 349 209 Sept.r.. -81 18 -99 -20 -129 25 24 -1 1 June........................... 380 233 Oct.r... -508 5 -513 48 -460 -48 -55 -3 6 Sept............................ 343 258 Nov.r.. -715 -62 -653 -27 -584 6 2 -2 48 Dec............................ 365 319 Dec.r. . -1,139 -839 -300 79 -310 9 -79 -1 1 1976—Mar............................ 411 333 1976—Jan.r... -335 94 -429 -109 -304 -9 -7 -3 2 Feb.r.. -1,205 -139 -1,067 33 -973 5 -113 -4 -14 .......... M AP a r r - . r r. - . ‘ - - 9 3 8 8 6 2 -94 9 - - 9 2 9 8 5 8 -168* - - 2 7 8 38 6 -72 6 - -1 1 5 4 -5 4 2 2 mo N n o e t y e d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in m g o o n n e t y h e c r b e o d o i k t s b o al f a r n e c p e o s r t a i n n d g May... -491 -158 -333 -19 -233 -39 -77 32 3 brokers and dealers in the United States, in accounts of June®.. -574 6 -580 -52 -328 10 13 11 —234 foreigners with them, and in their accounts carried by July*... -1,860 -819 -1,042 -129 -852 19 -93 9 3 foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 INTL. CAPITAL TRANSACTIONS OF THE U.S. o SEPTEMBER 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 1974—Dec........... 151,905 6,900 4,464 2,435 138,712 27,559 60,283 4,077 46,793 6,294 1975—June'........ 164,117 5,542 2,344 3,198 152,123 31,628 64,223 4,843 51,430 6,451 July r......... 162,511 5,926 2,795 3,131 149,946 31,055 63,126 4,798 50,967 6,639 Aug.r........ 167,672 9,151 6,098 3,054 151,899 32,062 62,974 4,901 51,960 6,623 Sept.r....... 167,886 6,575 3,268 3,307 154,905 32,140 65,876 4,863 52,026 6,407 Oct.r........ 171,465 7,924 4,896 3,027 156,989 33,496 65,348 5,237 52,908 6,553 Nov.r....... 173,736 8,705 5,777 2,928 158,179 34,385 65,296 5,516 52,982 6,852 Dec.r........ 176,493 6,743 3,665 3,078 163,391 34,508 69,206 5,879 53,798 6,359 1976—Jan.'........ 178,925 7,995 5,007 2,988 164,761 36,641 67,650 6,121 54,348 6,169 Feb.r........ 180,779 8,937 5,903 3,033 165,411 34,698 69,123 6,332 55,259 6,431 Mar.r....... 185,957 6,737 3,520 3,217 172,680 38,364 72,246 6,661 55,410 6,540 Apr.r........ 188,574 9,046 6,041 3,005 172,982 39,091 70,511 7,213 56,166 6,546 May.......... 193,719 10,014 6,919 3,095 176,952 39,521 73,457 7,820 56,154 6,753 June?........ 193,397 6,698 3,269 3,429 180,085 40,301 74,232 7,909 57,643 6,614 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—Juner........ 118,436 5,115 2,282 2,833 110,294 25,183 49,310 3,950 31,851 3,026 July r........ 118,558 5,519 2,744 2,776 109,544 25,001 48,874 3,930 31,739 3,495 Aug.r........ 122,781 8,827 6,044 2,783 110,654 25,758 48,250 4,148 32,498 3,299 Sept.r....... 124,373 6,238 3,211 3,027 115,178 26,043 51,998 4,042 33,095 2,957 Oct.r........ 127,355 7,506 4,822 2,684 116,673 27,357 50,820 4,363 34,133 3,176 Nov.r....... 130,233 8,350 5,725 2,625 118,603 28,317 51,624 4,646 34,016 3,280 Dec.r........ 132,901 6,408 3,628 2,780 123,496 28,478 55,319 4,951 34,748 2,997 1976—Jan.'........ 134,345 7,659 4,967 2,692 123,596 29,814 53,368 5,229 35,186 3,090 Feb.'........ 135,918 8,622 5,859 2,763 124,070 28,387 54,497 5,364 35,822 3,226 Mar.r....... 137,811 6,458 3,473 2,986 128,246 30,144 56,039 5,719 36,343 3,107 Apr.r........ 140,591 8,751 5,972 2,778 128,769 31,162 54,496 6,158 36,953 3,071 May.......... 146,117 9,699 6,844 2,855 133,175 31,822 57,540 6,656 37,158 3,243 June**........ 145,542 6,382 3,200 3,181 136,091 32,430 58,857 6,706 38,098 3,069 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—June ' 70,751 1,834 641 1,192 66,868 13,765 35,099 948 17,056 2,049 July r........ 70,382 1,904 807 1,097 66,277 14,414 34,090 923 16,851 2,202 Aug.r........ 72,455 3,795 2,698 1,097 66,428 15,213 33,486 948 16,780 2,232 Sept.r....... 72,120 2,042 1,076 967 67,923 15,249 35,569 825 16,280 2,155 Oct.r........ 72,742 2,681 1,699 982 67,631 16,555 33,882 830 16,364 2,430 Nov.r....... 73,924 3,112 2,137 975 68,494 17,549 34,077 852 16,017 2,319 Dec.r........ 74,883 2,392 1,449 943 70,331 17,557 35,904 881 15,990 2,159 1976—Jan. ' 73,437 2,253 1,469 784 69,062 18,026 34,152 1,034 15,850 2,123 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 2,275 1,447 827 69,555 18,394 34,879 934 15,348 2,226 May.......... 75,926 2,443 1,534 909 71,189 18,619 36,270 851 15,449 2,294 June?........ 74,461 1,702 803 900 70,526 18,138 35,804 888 15,695 2,233 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—Juner........ 51,365 1,669 623 1,045 48,713 12,054 25,922 721 10,017 983 July r........ 51,665 1,742 793 949 48,787 12,664 25,428 713 9,983 1,136 Aug.r........ 53,456 3,661 2,681 980 48,763 13,315 24,719 740 9,989 1,032 Sept.r....... 54,256 1,910 1,054 856 51,369 13,488 27,514 596 9,772 977 Oct.r........ 54,192 2,552 1,687 865 50,494 14,654 25,450 592 9,799 1,146 Nov.r....... 56,221 2,988 2,123 865 52,145 15,555 26,233 638 9,720 1,087 Dec.r..... 57,361 2,273 1,445 828 54,120 15,645 28,224 648 9,604 967 1976—Jan.r , 55,046 2,141 1,459 683 52,024 15,574 26,008 837 9,606 880 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........... 54,516 2,155 1,434 721 51,469 15,424 25,820 633 9,593 891 May.......... 56,667 2,322 1,519 803 53,466 15,860 27,218 635 9,754 879 June?........ 55,363 1,615 796 819 52,902 15,454 27,068 631 9,750 846 IN BAHAMAS AND CAYMANS1 Total, all currencies............................. 1973—Dec........... 23,771 2,210 31-7 1,893 21,041 1,928 9,895 1,151 8,068 520 1974—Dec........... 2(1,733 2,464 1,081 1,383 28,453 3,478 11,354 2,022 11,599 815 1975—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 1,485 1,996 46,636 6,745 18,205 4,251 17,434 957 Apr........... 54,398 5,695 3,835 1,860 47,536 6,437 18,503 4,680 17,917 1,166 May.......... 57,247 6,294 4,424 1,870 49,631 6,435 20,181 5,101 17,915 1,322 June*........ 257,118 3,804 1,636 2,169 52,275 7,254 21,204 5,160 18,657 1,039 For notes see p. A-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1976 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A71 19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Total Parent Other Total branches Other cial bank bank of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 121,866 5,610 1,642 3,968 111,615 18,213 65,389 10,330 17,683 4,641 .........1973__Dec 151,905 11,982 5,809 6,173 132,990 26,941 65,675 20,185 20,189 6,933 164,117 18,697 12,283 6,414 138,783 31,693 64,966 21,169 20,955 6,637 .........1975—June' 162,511 17,771 11,609 6,162 138,458 31,673 65,949 20,387 20,449 6,282 167,672 17,335 10,173 7,162 143,926 31,926 70,198 21,114 20,688 6,411 167,886 18,502 11,026 7.476 143,182 31,567 70,853 19,780 20,981 6,202 171,465 19,154 11,282 7,872 146,066 33,216 70,560 20,642 21,648 6,246 173,736 19,858 11,201 8,657 147,011 33,892 70,567 21,200 21,352 6,867 176,493 20,204 12,149 8,056 149,832 34,127 72,160 22,773 20,771 6,456 178,925 22,570 12,691 9,879 150,424 35,568 72,335 21,710 20,811 5,931 .........1976—Jan.' 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 5,863 188,574 26,705 14,543 12,162 156,084 38,508 72,591 21,857 23,128 5,785 193,719 28,213 15,914 12,299 159,474 38,642 75,811 22,369 22,652 6,032 193,397 27,967 16,470 11,497 159,314 39,589 75,373 21,505 22,847 6,117 80,374 5,027 1,477 3,550 73,189 12,554 43,641 7,491 9,502 2,158 1973_Dec 107,890 11,437 5,641 5,795 92,503 19,330 43,656 17,444 12,072 3,951 120,648 18,077 12,087 5,990 98,939 25,072 44,178 17,968 11,720 3,632 ......... 1975—June' 120,763 17,157 11,402 5,755 100,329 25,422 45,884 17,393 11,630 3,277 .....................July' 125,328 16,689 9,992 6,698 105,200 25,646 49,410 18,080 12,064 3,439 126,850 17,871 10,823 7,048 105,765 25,607 50,726 16,777 12,654 3,213 129,569 18,477 11,078 7,399 107,682 27,118 49,911 17,476 13,177 3,409 133,291 19,159 11,008 8,151 110,213 28,030 50,450 18,407 13,326 3,919 135,907 19,486 11,923 7,563 112,896 28,233 51,484 19,982 13,197 3,526 138,506 21,930 12,519 9,411 113,246 29,464 51,864 18,906 13,013 3,329 .........1976—Jan.' 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 2,982 145,560 25,961 14,286 11,674 116,539 31,273 51,634 19,080 14,552 3,060 150,860 27,512 15,654 11,858 120,257 31,487 54,516 19,693 14,561 3,091 150,163 27,130 16,161 10,968 119,844 32,570 54,040 18,936 14,298 3,189 IN UNITED KINGDOM 61,732 2,431 136 2,295 57,311 3,944 34,979 8,140 10,248 1,990 1973_Dec 69,804 3,978 510 3,468 63,409 4,762 32,040 15,258 11,349 2,418 .........1974—Dec. 70,751 4,668 1,451 3,217 63,828 7,030 30,000 15,524 11,274 2,256 1975—June' 70,382 4,679 1,718 2,961 63,482 6,475 30,617 15,312 11,077 2,222 .....................July' 72,455 5,251 1,904 3,348 64,994 6,260 32,079 15,617 11,038 2,210 72,120 5,112 1,833 3,279 64,962 6,396 33,130 14,486 10,950 2,046 72,742 4,905 1,766 3,139 65,681 6,746 32,315 14,909 11,711 2,157 .....................Oct.' 73,924 5,497 2,028 3,468 66,210 6,470 33,284 15,180 11,275 2,218 74,883 5,646 2,122 3,523 67,240 6,494 32,964 16,553 11,229 1,997 73,437 5,645 1,749 3,896 65,899 6,444 33,522 15,053 10,879 1,893 .........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 74,055 6,105 1,764 4,340 65,977 6,898 31,805 15,521 11,752 1,974 75,926 6,483 1,796 4,687 67,212 7,030 33,189 15,782 11,212 2,231 74,461 5,874 1,562 4,312 66,536 7,288 33,313 14,825 11,111 2,051 39,689 2,173 113 2,060 36,646 2,519 22,051 5,923 6,152 870 1973_Dec 49,666 3,744 484 3,261 44,594 3,256 20,526 13,225 7,587 1,328 .........1974—Dec. 51,848 4,369 1,412 2,957 46,282 5,962 20,009 13,083 7,228 1,197 .........1975—June' 51,826 4,421 1,684 2,737 46,198 5,478 20,756 12,915 7,049 1,207 .....................July' 54,017 4,975 1,873 3,103 47,896 5,288 22,071 13,249 7,287 1,146 54,683 4,889 1,808 3,081 48,814 5,456 23,645 12,182 7,531 980 54,478 4,696 1,735 2,961 48,641 5,708 22,433 12,500 7,999 1,142 56,696 5,288 2,009 3,279 50,159 5,478 23,615 12,999 8,066 1,249 5,5471,58202,083 3,332 51,447 5,442 23,330 14,498 8,176 959 55,987 5,446 1,732 3,714 49,609 5,422 23,357 13,070 7,761 932 .........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.' 55,750 5,880 1,723 4,156 48,992 5,771 21,230 13,450 8,541 877 57,923 6,271 1,759 4,513 50,727 5,863 22,544 13,914 8,406 925 56,538 5,645 1,509 4,136 50,043 6,218 22,690 13,074 8,061 849 IN BAHAMAS AND CAYMANS 1 23,771 1,573 307 1,266 21,747 5,508 14,071 492 1,676 451 ........1973__Dec 31,733 4,815 2,636 2,180 26,140 7,702 14,050 2,377 2,011 778 39,646 10,866 8,322 2,544 27,987 8,075 14,482 3,036 2,393 793 39,614 9,991 7,407 2,584 28,933 8,401 15,539 2,500 2,492 690 ....................July 41,624 8,800 5,715 3,085 31,913 9,128 17,317 2,860 2,607 911 41,601 9,928 6,490 3,439 30,861 8,918 16,834 2,570 2,540 812 44,166 10,833 7,056 3,778 '32,372 9,725 17,296 2,775 2,577 961 44,471 11,082 6,710 4,372 32,239 10,553 15,972 3,230 2,483 1,150 45,203 11,146 7,628 3,519 32,950 10,569 16,726 3,308 2,348 1,106 48,694 13,110 8,088 5,022 34,475 11,169 17,603 3,416 2,287 1,109 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 54,398 16,822 9,904 6,918 36,604 11,903 18,872 2,970 2,858 972 57,247 18,230 11,529 6,702 38,167 11,918 20,268 2,950 3,031 849 257,118 18,316 12,203 6,113 37,787 12,117 19,694 2,917 3,058 1,016 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. o SEPTEMBER 1976 20. DEPOSITS, U.S. TREAS. SECURITIES, 21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody E p n er d i o o d f Deposits U se . c S u . r T it r i e e a s s 1 . Ear g m o a ld rked E pe n r d i o o d f Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ U K d n i o i n m t g ed ­ Canada ments 1 ments 1 1972.............. 325 50,934 215,530 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................... 3,357 2,591 68 429 268 1,350 967 1975—Aug... 342 60,120 16,803 Sept... 324 58,420 16,795 1975—May 3,298 2,253 66 453 526 931 1,254 Oct.... 297 60,307 16,751 June........ 3,250 2,177 214 427 432 997 1,142 Nov... 346 60,512 16,745 July......... 3,334 2,207 246 479 402 925 1,122 Dec.. . 352 60,019 16,745 Aug......... 3,562 2,291 239 512 520 1,052 1,322 Sept......... 3,696 2,456 266 478 496 1,139 1,261 1976—Jan.... 294 61,796 16,669 Oct.......... 3,527 2,498 351 429 249 1,199 1,167 Feb.... 412 62,640 16,666 Nov........ 3,922 2,709 468 461 284 1,308 1,382 Mar... 305 61,271 16,660 Dec......... 3,782 2,699 332 510 241 1,304 1,148 Apr.... 305 62,527 16,657 May. . 303 63,225 16,647 1976—Jan.......... 4,206 3,081 374 476 274 1,506 1,312 June .. 349 63,212 16,633 Feb......... 4,416 3,265 377 449 325 1,508 1,357 July... 295 62,955 16,607 Mar........ 4,410 3,352 393 437 228 1,690 1,325 Aug... 254 63,457 16,575 Apr......... 4,936 3,851 412 435 238 2,061 1,354 May........ 5,175 4,087 426 455 207 1,912 1,495 June*___ 4,923 3,962 345 435 181 1,910 1,257 1 Marketable U.S. Treasury bills, certificates of in­ debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign i Negotiable and other readily transferable foreign obligations payable on demand currencies. or having a contractual maturity of not more than 1 year from the date on which the 2 The value of earmarked gold increased because of the obligation was incurred by the foreigner. changes in par value of the U.S. dollar in May 1972, and in Oct. 1973. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by Note.—Excludes deposits and U.S. Treasury securities nonbanking concerns in the United States and are included in the figures shown in held for international and regional organizations. Ear­ Table 22. marked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. 22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amount outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Payable Payable Payable Total in in Total in dollars foreign dollars Deposits with currencies banks abroad Other in reporter’s name 1972—Sept...................... 2,933 2,435 498 5,487 4,833 426 228 Dec.1................... / I 3 3 , , 1 4 1 1 9 7 2 2, ,9 63 4 5 8 4 4 6 8 9 4 6 5, , 7 3 2 0 1 2 5 5 , , 0 64 7 3 4 4 39 1 3 0 2 2 3 6 7 7 1973—Mar...................... 3,320 2,848 472 7,017 6,147 456 414 June..................... 3,295 2,772 523 7,290 6,448 493 349 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....................... 5,916 5,007 909 11,276 10,219 473 584 1975—Mar...................... 5,930 5,068 862 10,929 9,798 453 678 June..................... 5,924 5,091 834 10,886 9,606 479 801 Sept...................... 5,997 5,149 849 11,712 10,364 529 819 Dec....................... 5,958 5,353 605 12,244 11,069 565 611 1976—Mar.*................... 6,264 5,598 666 12,808 11,759 487 562 i 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

SEPTEMBER 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 1975 1976 1975 1976 Mar. June Sept. Dec. Mar.» Mar. June Sept. Dec. Mar.** Europe: Austria................................................... 26 22 18 14 6 15 13 15 16 17 Belgium-Luxembourg........................... 480 340 336 294 291 137 132 131 133 116 Denmark................................................ 23 14 8 9 12 35 22 24 39 35 Finland.................................................. 16 12 14 14 10 77 87 114 91 36 France.................................................... 151 137 150 148 204 328 287 311 300 372 Germany................................................ 352 293 276 151 153 276 346 319 357 306 Greece.................................................... 25 27 21 19 25 59 69 56 33 40 Italy........................................................ 109 110 156 173 126 309 300 380 382 408 Netherlands........................................... 122 143 154 115 165 157 135 139 172 182 Norway.................................................. 9 8 13 20 23 35 41 48 41 58 Portugal................................................. 13 13 13 4 3 42 32 39 44 45 Spain...................................................... 55 60 75 82 70 360 324 315 408 514 Sweden................................................... 32 30 47 24 25 66 74 100 62 80 Switzerland............................................ 155 168 167 130 159 86 113 220 242 207 Turkey.................................................... 12 14 22 25 14 33 28 31 27 27 United Kingdom................................... 1,192 1,054 945 970 923 1,655 1,555 1,781 1,905 2,291 Yugoslavia............................................. 52 45 60 76 91 33 32 24 36 30 Other Western Europe.......................... 5 4 5 6 6 23 16 19 14 18 Eastern Europe...................................... 45 49 38 31 33 114 154 170 219 186 Total............................................... 2,875 2,545 2,518 2,304 2,339 3,838 3,761 4,238 4,519 4,970 Canada....................................................... 263 283 299 295 314 1,859 1,954 2,102 2,124 2,236 Latin America: Argentina............................................... 31 30 28 31 35 76 63 52 58 48 Bahamas................................................ 387 357 290 270 376 615 631 686 662 882 Brazil...................................................... 121 127 116 96 91 378 349 385 403 470 Chile....................................................... 23 15 13 14 11 69 57 41 38 28 Colombia............................................... 12 12 14 17 16 54 50 47 49 47 Cuba....................................................... * *■ * * * 1 1 1 1 1 Mexico.................................................... 69 71 81 82 92 336 322 317 352 331 Panama.................................................. 18 27 19 24 17 110 128 103 92 86 Peru........................................................ 18 16 19 23 24 46 50 48 41 36 Uruguay.................................................. 3 3 2 3 2 15 5 5 4 4 Venezuela............................................... 39 45 56 100 163 180 166 153 167 147 Other L.A. republics............................. 65 67 69 71 72 193 179 165 157 167 Neth. Antilles and Surinam................. 56 60 76 35 58 16 13 12 12 7 Other Latin America............................. 134 145 142 138 214 196 159 192 301 292 Total................................................ 975 973 924 903 1,171 2,286 2,171 2,205 2,337 2,546 Asia: China, People’s Republic of (China Mainland).......................................... 8 6 2 6 5 19 32 45 65 35 China, Rep. of (Taiwan)....................... 102 100 101 97 111 122 125 152 164 100 Hong Kong............................................ 19 30 29 18 24 83 85 85 111 67 India....................................................... 10 21 22 7 9 32 39 48 39 60 Indonesia................................................ 63 87 104 137 137 117 147 137 169 194 Israel...................................................... 62 62 45 29 23 46 60 63 54 42 Japan...................................................... 327 273 279 296 308 1,326 1,250 1,269 1,141 1,170 Korea...................................................... 47 43 63 69 54 165 178 207 265 108 Philippines.............................................. 19 17 15 14 19 83 91 93 99 106 Thailand................................................. 9 6 8 18 18 30 25 21 22 21 Other Asia.............................................. 642 841 908 1,027 958 394 465 532 555 643 Total............................................... 1,308 1,488 1,575 1,717 1,667 2,416 2,497 2,652 2,683 2,546 Africa: Egypt...................................................... 5 34 34 37 30 24 15 15 22 22 South Africa.......................................... 54 65 79 100 112 104 104 78 93 79 Zaire....................................................... 17 9 9 6 7 18 17 22 28 28 Other Africa.......................................... 137 209 212 240 347 236 218 263 287 239 Total............................................... 217 323 341 391 502 387 364 388 440 378 Other countries: Australia................................................ 60 37 52 55 47 97 99 79 101 96 All other................................................ 31 18 21 17 18 45 39 48 39 37 Total............................................... 91 55 73 73 65 141 138 127 140 133 International and regional........................ 201 257 267 276 219 1 1 * 1 1 Grand total..................................... 5,930 5,924 5,997 5,958 6,277 10,929 10,886 11,712 12,244 12,810 Note.—Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks, and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1976 24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area Total End of period liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1971—Dec......................... 3,138 3,068 128 704 717 174 60 653 136 325 86 84 1972—Sept........................ 3,448 3,187 128 695 757 177 63 662 132 390 89 96 / 3,540 3,312 163 715 775 184 60 658 156 406 87 109 \ 3,603 3,666 191 745 1,141 187 64 703 133 378 86 38 1973—Mar........................ 3,781 3,798 156 802 1,151 165 63 796 123 393 105 45 June....................... 3,785 3,853 180 805 1,163 146 65 825 124 390 108 48 Sept........................ 4,000 3,999 216 822 1,166 147 73 832 134 449 108 51 Dec......................... 3,886 4,057 290 761 1,172 145 79 829 125 488 115 53 1974—Mar........................ 3,836 4,194 369 737 1,210 194 81 809 123 488 122 61 June....................... 3,536 4,191 363 699 1,226 184 138 756 123 515 126 61 Sept........................ 3,371 4,324 370 704 1,256 181 145 796 119 571 122 59 Dec......................... 3,850 4,544 364 644 1,290 187 153 1,045 112 569 127 54 1975—Mar........................ 4,129 4,523 340 655 1,334 182 169 1,008 102 540 139 54 June....................... 4,230 4,454 299 634 1,328 182 161 982 98 556 146 68 Sept........................ 4,180 4,590 366 620 1,347 177 228 930 95 608 154 67 Dec......................... 4,232 4,971 396 589 1,426 171 216 1,251 90 604 168 61 1976—Mar. v..................... 4,046 5,162 348 586 1,474 182 199 1,386 91 621 214 62 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 months * money 2 bills, 3 months money deposit money 3 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—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 6.50 7.63 3.13 3.62 2.50 2.12 4.78 Apr............. 8.97 8.65 9.10 8.97 7.69 6.50 7.56 3.13 2.76 2.96 2.50 4.50 May............ 8.93 8.96 10.31 10.45 10.16 6.50 7.53 3.13 3.68 3.60 3.98 4.50 June............ 8.99 9.04 11.05 10.94 10.69 6.50 7.63 3.13 4.23 5.68 4.82 4.50 July............ 9.02 8.98 11.00 10.89 10.88 6.50 8.33 3.13 4.38 6.94 4.50 Aug............. 9.12 9.22 10.94 10.88 10.53 6.50 9.50 3.13 4.08 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 $53,365 million and $53,834 million, respectively, on June 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

SEPTEMBER 1976 □ CENTRAL BANK AND EXCHANGE RATES A75 26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Aug. 31, 1976 Rate as of Aug. 31, 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......................... 9.0 Aug. 1976 Mexico.............. 4.5 June 1942 Brazil............................. 28.0 May 1976 Netherlands.... 7.0 Aug. 1976 Canada.......................... 9.5 Mar. 1976 Norway............. 5.0 Oct. 1975 Denmark....................... 8.5 Mar. 1976 Sweden.............. 6.0 June 1976 France........................... 9.5 July 1976 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^ Argentina—3 and 5 per cent for certain rural and industrial paper, de­ per cent for advances against government bonds, and 5 Vi per cent for pending on type of transaction; rediscounts of certain industrial paper and on advances against promissory Brazil—8 per cent for secured paper and 4 per cent for certain agricultural notes or securities of first-class Venezuelan companies. paper; 27. FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Austria Belgium Canada Denmark France Germany India Ireland Italy Japan Period (dollar) (schilling) (franc) (dollar) (krone) (franc) (deutsche (rupee) (pound) (lira) (yen) mark) 1972..................... 119.23 4.3228 2.2716 100.937 14.384 19.825 31.364 13.246 250.08 .17132 .32995 1973..................... 141.94 5.1649 2.5761 99.977 16.603 22.536 37.758 12.071 245.10 .17192 .36915 1974.................... 143.89 5.3564 2.5713 102.257 16.442 20.805 38.723 12.460 234.03 .15372 .34302 1975.................... 130.77 5.7467 2.7253 98.297 17.437 23.354 40.729 11.926 222.16 .15328 .33705 1975—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 5.4535 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 July 123.59 5.4500 2.5182 102.86 16.225 20.651 38.842 11.205 178.50 .11943 .33940 Aug.......... 124.18 5.5645 2.5632 101.49 16.448 20.131 39.538 11.143 178.28 .11936 .34410 Malaysia Mexico Nether­ New Norway Portugal South Spain Sweden Switzer­ United Period (ringgit) (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—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 July 39.589 8.0000 36.643 99.05 17.899 3.1810 114.83 1.4685 22.379 40.242 178.50 Aug.......... 40.077 8.0000 37.393 99.66 18.150 3.1982 114.84 1.4651 22.660 40.302 178.28 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 the Board’s Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Board of Governors of the Federal Reserve System Arthur F. Burns, Chairman Stephen S. Gardner, Vice Chairman Henry C. W allich Philip E. Coldwell Philip C. Jackson, Jr. J. Charles Partee David M. Lilly OFFICE OF OFFICE OF BOARD MEMBERS OFFICE OF STAFF STAFF DIRECTOR FOR MANAGEMENT DIRECTOR FOR MONETARY POLICY Thomas J. O’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 Arthur 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 Brenton C. L eavitt, Program Director for Board DIVISION OF RESEARCH AND STATISTICS Banking Structure Lyle E. Gram ley, Director James L. K ichline, Associate Director Joseph S. Zeisel, Associate Director Edward C. E ttin, Adviser John H. K alchbrenner, Adviser LEGAL DIVISION James B. Eckert, Associate Adviser t John J. M ingo, Associate Adviser John D. Hawke, Jr., General Counsel Eleanor J. Stockw ell, Associate Adviser Baldwin B. T uttle, Deputy General Helm ut F. W endel, Associate Adviser DIVISION OF FEDERAL RESERVE Counsel James R. W etzel, Associate Adviser BANK EXAMINATIONS AND BUDGETS Robert E. M annion, Assistant General James M. Brundy, Assistant 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. H am ilton, Associate Director Gary M. W elsh, Assistant General Counsel J. C ortland G. Peret, Assistant Adviser Clyde H. Farnsworth, Jr., Assistant Director Charles R. M cN eill, 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 John E. Reynolds, Acting Director James R. K udlinski, Director Janet O. H art, Director Robert F. Gemmill, Adviser W alter A. A lthausen, Assistant Director Jerauld C. Kluckman, Assistant Director Reed J. Irvine, Adviser Brian M. Carey, Assistant Director Robert S. Plotkin, Assistant Director tHELEN B. Junz, Adviser Harry A. G uinter, Assistant Director Samuel Pizer, Adviser George B. Henry, Associate Adviser OFFICE OF THE SECRETARY Charles J. Siegman, Associate Adviser DIVISION OF DATA PROCESSING Edwin M. Truman, Associate Adviser Theodore E. A llison, Secretary Charles L. Hampton, Director * Richard D. Abrahamson, Assistant Secretary Bruce M. Beardsley, Associate Director G riffith L. Garwood, Assistant Secretary Uyless D. Black, Assistant Director G lenn L. Cummins, Assistant Director tOn leave of absence. Robert J. Zem el, Assistant Director DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF PERSONNEL Brenton C. Leavitt, Director Charles W. W ood, Assistant Director Ralph H. G elder, Associate Director John E. Ryan, Associate Director OFFICE OF THE CONTROLLER W illiam W. W iles, Associate Director Peter E. Barn a, Assistant Director John K akalec, Controller Frederick R. D ahl, Assistant Director Tyler E. W illiam s, Jr., Assistant Controller Jack M. Egertson, Assistant Director John N. Lyon, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES John T. M cClintock, Assistant Director Thomas E. M ead, Assistant Director W alter W. Kreimann, Director Thomas A. Sidman, Assistant Director Donald E. Anderson, Assistant Director John D. Smith, Assistant Director * On loan from the Federal Reserve Bank of Chicago. A77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Open Market Committee Arthur F. Burns, Chairman Paul A. Volcker, Vice Chairman John J. Balles Stephen S. Gardner J. Charles Partee Robert P. Black Philip C. Jackson, Jr. Henry C. Wallich Philip E. Coldwell Monroe Kimbrel Willis J. Winn David M. Lilly Arthur L. Broida, Secretary Lyle E. Gram ley, Economist M urray Altm ann, Deputy Secretary (Domestic Business) Normand R. V. Bernard, Assistant Harry Brandt, Associate Economist Secretary Richard G. Davis, Associate Economist Thomas J. O’C onnell, General Counsel W illiam J. H octer, Associate Economist Edward G. Guy, Deputy General Counsel M ichael W. Keran, Associate Economist Baldwin B. T uttle, Assistant General James L. K ichline, Associate Economist Counsel James Parthemos, Associate Economist Stephen H. Axilrod, Economist John E. Reynolds, Associate Economist (Domestic Finance) Joseph S. Zeisel, Associate Economist Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations 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. Grangaard, ninth RESERVE DISTRICT FEDERAL RESERVE DISTRICT M. Brock Weir, fourth federal Eugene H. Adams, tenth federal RESERVE DISTRICT RESERVE DISTRICT John H. Lumpkin, fifth federal Ben F. Love, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Lawrence A. Merrigan, sixth G ilbert F. Bradley, tw elfth FEDERAL RESERVE DISTRICT federal reserve district Herbert 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 and Records 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 The Performance of Bank Holding Companies. Functions. 1974. 125 pp. $1.00each; 10or more 1967. 29 pp. $.25 each; 10 or more to one address, to one address, $.75 each. $.20 each. Bank Credit-Card and Check-Credit Plans. 1968. Annual Report 102 pp. $1.00 each; 10 or more to one address, Federal Reserve Bulletin. Monthly. $20.00 per $.85 each. year or $2.00 each in the United States, its posses­ Survey of Financial Characteristics of Con­ sions, Canada, and Mexico; 10 or more of same sumers. 1966. 166 pp. $1.00 each; 10 or more issue to one address, $18.00 per year or $1.75 to one address, $.85 each. each. Elsewhere, $24.00 per year or $2.50 each. Survey of Changes in Family Finances. 1968. 321 Banking and Monetary Statistics, 1914-1941. pp. $1.00 each; 10 or more to one address, $.85 (Reprint of Part 1 only) 1976. 682 pp. $5.00. each. Banking and Monetary Statistics, 1941-1970. Report of the Joint Treasury-Federal Reserve 1976. 1,168 pp. $15.00. Study of the U.S. Government Securities Federal Reserve Monthly Chart Book. Subscrip­ Market. 1969. 48 pp. $.25 each; 10 or more to tion includes one issue of Historical Chart Book. one address, $.20 each. $12.00 per year or $1.25 each in the United States, Joint Treasury-Federal Reserve Study of the its possessions, Canada, and Mexico; 10 or more Government Securities Market: Staff Stud­ of same issue to one address, $1.00 each. Else­ ies—Part 1. 1970. 86 pp. $.50 each; 10 or more where, $15.00 per year or $1.50 each. to one address, $.40 each. Part 2. 1971. 153 pp. Historical Chart Book. Issued annually in Sept. and Part 3. 1973. 131 pp. Each volume $1.00; Subscription to Monthly Chart Book includes one 10 or more to one address, $.85 each. issue. $1.25 each in the United States, its posses­ Open Market Policies and Operating Proce­ sions, Canada, and Mexico; 10 or more to one dures—Staff Studies. 1971. 218 pp. $2.00 address, $1.00 each. Elsewhere, $1.50 each. each; 10 or more to one address, $1.75 each. Capital Market Developments. Weekly. $15.00 per Reappraisal of the Federal Reserve Discount year or $.40 each in the United States, its posses­ Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. sions, Canada, and Mexico; 10 or more of same 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; issue to one address, $13.50 per year or $.35 each. 10 or more to one address, $2.50 each. Elsewhere, $20.00 per year or $.50 each. The Econometrics of Price Determination Con­ Selected Interest and Exchange Rates—Weekly ference, October 30-31, 1970, Washington, D.C. Series of Charts. Weekly. $15.00 per year or 1972. 397 pp. Cloth ed. $5.00 each; 10 or more $.40 each in the United States, its possessions, to one address, $4.50 each. Paper ed. $4.00 each; Canada, and Mexico; 10 or more of same issue 10 or more to one address, $3.60 each. to one address, $13.50 per year or $.35 each. Federal Reserve Staff Study: Ways to Moderate Elsewhere, $20.00 per year or $.50 each. Fluctuations in Housing Construction. 1972. The Federal Reserve Act, as amended through De­ 487 pp. $4.00 each; 10 or more to one address, cember 1971, with an appendix containing provi­ $3.60 each. sions of certain other statutes affecting the Federal Lending Functions of the Federal Reserve Reserve System. 252 pp. $1.25. Banks. 1973. 271 pp. $3.50 each; 10 or more Regulations of the Board of Governors of the to one address, $3.00 each. Federal Reserve System Introduction to Flow of Funds. 1975. 64 pp. $.50 Published Interpretations of the Board of Gov­ each; 10 or more to one address, $.40 each. ernors, as of Dec. 31, 1975. $2.50. Improved Fund Availability at Rural Banks (Re­ The Federal Funds Market. 1959. Ill pp. $1.00 port and study papers of the Committee on Rural each; 10 or more to one address, $.85 each. Banking Problems). 1975. 133 pp. $1.00 each; 10 Trading in Federal Funds. 1965. 116 pp. $1.00 or more to one address, $.85 each. each; 10 or more to one address, $.85 each. Improving the Monetary Aggregates (Report of the Industrial Production— 1971 Edition. 1972. 383 Advisory Committee on Monetary Statistics). pp. $4.00 each; 10 or more to one address, $3.50 1976. 43 pp. $1.00 each; 10 or more to one each. address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 81 STAFF ECONOMIC STUDIES Yields on Newly Issued Corporate Bonds. 9/72. Recent Activities of Foreign Branches of U.S. Studies and papers on economic and financial subjects Banks. 10/72. that are of general interest in the field of economic Revision of Consumer Credit Statistics. 10/72. research. One-Bank Holding Companies Before the 1970 Amendments. 12/72. Summaries Only Printed in the Bulletin Yields on Recently Offered Corporate Bonds. (Limited supply of mimeographed copies of full text 5/73. available upon request for single copies.) Capacity Utilization in Major Materials Indus­ tries. 8/73. Household-Sector Economic Accounts, by David Credit-Card and Check-Credit Plans at Commer­ F. Seiders. Jan. 1975. 84 pp. cial Banks. 9/73. The Performance of Individual Bank Holding Rates on Consumer Instalment Loans. 9/73. Companies, by Arthur G. Fraas. Aug. 1975. New Series for Large Manufacturing Corpora­ 27 pp. tions. 10/73. The Growth of Multibank Holding Companies: U.S. Energy Supplies and Uses, Staff Economic 1956-73, by Gregory E. Boczar. Apr. 1976. 27 Study by Clayton Gehman. 12/73. pp. Capacity Utilization for Major Materials: Re­ Extending Merger Analysis Beyond the Single- vised Measures. 4/74. Market Framework, by Stephen A. Rhoades. Numerical Specifications of Financial Variables May 1976. 25 pp. and Their Role in Monetary Policy. 5/74. Seasonal Adjustment of Mx—Currently Pub­ Inflation and Stagnation in Major Foreign In­ lished and Alternative Methods, by Edward dustrial Countries. 10/74. R. Fry. May 1976. 22 pp. The Structure of Margin Credit. 4/75. Effects of NOW Accounts on Costs and Earnings New Statistical Series on Loan Commitments at of Commercial Banks in 1974-75, by John D. Selected Large Commercial Banks. 4/75. Paulus. Sept. 1976. 49 pp. Recent Trends in Federal Budget Policy. 7/75. Banking and Monetary Statistics, 1974. Selected Printed in Full in the Bulletin series of banking and monetary statistics for 1974 only. 2/75, 3/75, 4/75, and 7/75. Staff Economic Studies shown in list below. Recent Developments in International Financial Markets. 10/75. REPRINTS M INNIE: A Small Version of the (Except for Staff Papers, Staff Economic Studies, and MIT-PENN-SSRC Econometric Model, Staff some leading articles, most of the articles reprinted do Economic Study by Douglas Battenberg, Jared J. not exceed 12 pages.) Enzler, and Arthur M. Havenner. 11/75. An Assessment of Bank Holding Companies, Staff Seasonal Factors Affecting Bank Reserves. 2/58. Economic Study by Robert J. Lawrence and Measures of Member Bank Reserves. 7/63. Samuel H. Talley. 1/76. Research on Banking Structure and Perform­ Industrial Electric Power Use. 1/76. ance, Staff Economic Study by Tynan Smith. Revision of Money Stock Measures. 2/76. 4/66. Survey of Finance Companies, 1975. 3/76. A Revised Index of Manufacturing Capacity, Changing Patterns in U.S. International Trans­ Staff Economic Study by Frank de Leeuw with actions. 4/76. Frank E. Hopkins and Michael D. Sherman. 11/66. Revised Series for Member Bank Deposits and U.S. International Transactions: Trends in Aggregate Reserves. 4/76. 1960-67. 4/68. Bank Holding Company Financial Developments Measures of Security Credit. 12/70. in 1975. 4/76. Revised Measures of Manufacturing Capacity Changes in Bank Lending Practices, 1975. 4/76. Utilization. 10/71. Industrial Production— 1976 Revision. 6/76. Revision of Bank Credit Series. 12/71. Federal Reserve Operations in Payment Mecha­ Assets and Liabilities of Foreign Branches of nisms: A Summary. 6/76. U.S. Banks. 2/72. Changes in Time and Savings Deposits at Com­ Bank Debits, Deposits, and Deposit Turnover— mercial Banks, October 1975-January 1976. Revised Series. 7/72. 7/76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A83 References are to pages A-2 through A-75 although the prefix “A” is omitted in this index INCOME, national and personal, 54, 55 REAL estate loans: Industrial production index, 48, 49, 50 Banks, by classes, 16, 18, 30, 42 Instalment loans, 45, 46, 47 Mortgage yields, 43, 45 Insurance companies, 31, 34, 35, 42, 44 Type of holder and property mortgaged, 42-44 Insured commercial banks, 14, 16, 17, 24 Reserve position, basic, member banks, 5 Interbank deposits, 14, 20 Reserve requirements, member banks, 7 Interest rates: Reserves: Bond and stock yields, 28 Central banks and govts., 60 Business loans of banks, 26 Commercial banks, 17, 20, 22 Federal Reserve Banks, 6 Federal Reserve Banks, 10 Foreign countries, 74, 75 Member banks, 3, 4, 13, 17 Money market rates, 27 U.S. reserve assets, 59 Mortgage yields, 43, 45 Residential mortgage loans, 43, 44, 45 Prime rate, commercial banks, 26 Retail credit, 46, 47 Time and savings deposits, maximum rates, 8 Retail sales, 50 International capital transactions of U.S., 61-74 International institutions, 60-64, 66, 67-69, 73 SALES, revenue, profits, and dividends of large manu­ Inventories, 54 facturing corporations, 40 Investment companies, issues and assets, 39 Saving: Investments (See also specific types of investments): Flow of funds series, 56, 57 Banks, by classes, 14, 16, 19, 30 National income series, 54, 55 Commercial banks, 13 Savings and loan assns., 31, 35, 42, 44 Federal Reserve Banks, 10, 11 Savings deposits (See Time deposits) Life insurance companies, 31 Savings institutions, principal assets, 30, 31 Savings and loan assns., 31 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 37 LABOR force, 52 International transactions, 68, 69 Life insurance companies (See Insurance companies) New issues, 37, 38, 39 Loans (See also specific types of loans): Yields and prices, 28, 29 Banks, by classes, 14, 16, 18, 30 Special Drawing Rights, 2, 10, 58, 59 Commercial banks, 13, 14, 16, 18, 23, 25, 26 State and local govts.: Federal Reserve Banks, 2, 4, 6, 10, 11 Deposits, 17, 20 Insurance companies, 31, 44 Holdings of U.S. Govt, securities, 34, 35 Insured or guaranteed by U.S., 42, 43, 44, 45 New security issues, 37, 38 Savings and loan assns., 31 Ownership of securities of, 16, 19, 30 Yields and prices of securities, 28, 29 MANUFACTURERS: State member banks, 15, 24 Capacity utilization, 50 Stock market credit, 29, 30 Production index, 49, 50 Stocks (See also Securities): Margin requirements, 8 New issues, 38, 39 Member banks: Yields and prices, 28, 29 Assets and liabilities, by classes, 14, 16, 17 TAX receipts, Federal, 33 Borrowings at Federal Reserve Banks, 4, 10 Time deposits, 8, 13, 14, 17, 21, 22 Number, by classes, 14 Treasury currency, Treasury cash, 2, 3 Reserve position, basic, 5 Treasury deposits, 3, 10, 32 Reserve requirements, 7 Treasury operating balance, 32 Reserves 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 □ September 1976 The Federal Reserve System B oundaries of Federal R eserve D istricts and Their B ranch Territories m : , m/<‘ ’i VP: P iill I ^ flH H H i . jmMMmm'M , ■ y^y»' £ V < c'; ■:,:y.■ - .- .;'V*Iii 1 ^ i __g B B M S g K ------"•;-----------rjm— ----------------------------fms. i##liSI®lsiSEi?lWsii!l® m ' I -h^f- IlMli m •■ - v LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities ----- Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility o 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 P Preliminary S IP M C S A I S n ta d n iv d i a d r u d a l m s, e t p r a o r p t o n l e it r a s n h ip s s ta , t a is n t d ic a c l o r a p r o ea r ations 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